14. Inspection of Records. The City shall have the right to review all books and records of the Developer pertaining to the costs and expenses incurred by the Developer for the design and construction of the City Improvements during normal business hours by maki ng arrangements with the Developer. The Developer shall have the right to review all books and records of the City pertaining to costs and expenses incurred by the City for services of the Engineer by making arrangements with the City.
15. Ownership of Improvements. Notwithstanding the fact that some or all of the City Improvements may be constructed in dedicated street rights-of-way or on property which has been or will be dedicated to the City, each City Improvement shall be and remain the property of the Developer until acquired by the City as provided in this Agreement.
16. Materials and Workmanship Warranty. The requirements of this Section shall not apply to any City Improvement that was complete (as determined by the City Council) prior to the 960
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adoption by the City Council of the resolution forming the CFD, but they shall apply to all other City Improvements.
Upon the completion of the acquisition of a City Improvement by the City, the performance bond related to such individual City Improvement prov ided by the Developer pursuant to Section 7.1(e) hereof, shall be reduced by 90%, and the remaining 10% shall serve as a maintenance bond to guarantee that such City Improvement will be free from defects due to faulty workmanship or materials for a period of one year.
17. City Fee Facility Improvements . The Developer may be required pursuant to the conditions of development or the fee ordinance to pay certain City fees (the “City Fees”) relating to the City Fee Facility Improvements prior to the availability o f proceeds of the Bonds to pay for such City Fee Facility Improvements. In the event such City Fees are paid prior to the availability of Bond proceeds, the amounts paid to the City shall be deemed to be deposits (each a “Deposit”) that are subject to refund by the City to the Developer in accordance with this Agreement. The City shall place each Deposit in a capital facilities account(s). If the Developer has made any Deposits to the City, then following deposit of Bond proceeds in the City Fee Facility Improvements Account, the City shall return to the Developer, from the capital account in which the Deposits were deposited the Deposits not previously returned, without interest or other earnings thereon. The City shall be so obligated to return such De posits only to the extent that an equivalent amount of the Deposits to be returned is deposited in the City Fee Facility Improvements Account from Bond proceeds or Special Tax collections prior to the issuance of Bonds.
Bond proceeds used to finance City F ee Facility Improvements which relate to the City Fees shall be allocated first for return of all Deposits prior to being allocated to the payment of City Fees not previously deposited by the Developer. Any Deposits that have not been returned to the Developer at the time it is determined that there will be no further Bond proceeds available (i.e. the final series of Bonds to finance the Improvements have been issued) shall be retained by the City and may be used for the purposes for which the City Fee was required, and the unrefunded Deposits shall constitute full and final payment for such City Fees, without any increase of any kind.
18. Miscellaneous Improvements. Improvements unrelated to the City Improvements and the City Fee Facility Improvements are des cribed in Exhibit “C” attached hereto. The amounts deposited in the applicable Miscellaneous Improvements Account(s), if any, will be disbursed for the acquisition or construction of Miscellaneous Improvements in accordance with the provisions in the applicable Joint Community Facilities Agreement. Any amounts in the applicable Miscellaneous Improvements Account(s) shall be disbursed at the written direction of the City upon Developer’s submittal of a payment request which will be based upon applicable entity’s payment request form as provided for in the applicable Joint Community Facilities Agreement. Upon receipt of such payment request, the City shall submit a written requisition for payment of the requested amount to the Fiscal Agent for the Bonds, who shall directly pay the amount requested to the applicable entity.
19. Independent Contractor . In performing this Agreement, Developer is an independent contractor and not the agent of the City. The City shall not have any responsibility for payment to any contractor or supplier of Developer. It is not intended by the Parties that this Agreement create a partnership or joint venture among them and this Agreement shall not otherwise be construed.
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20. Indemnification. Developer shall assume the defense of, indem nify and save harmless, the City, its officers, employees and agents, and the Community Facilities District, its officers, employees and agents, from and against all actions, damages, claims, losses or expenses of every type and description to which they m ay be subject or put, by reason of, or resulting from such person’s or entity’s performance of its obligations under this Agreement and the construction of the City Improvements and the Miscellaneous Improvements, the failure of the Developer to provide notice of the Special Tax to be levied by the Community Facilities District pursuant to Section 53341.5 of the Act (but only if the Developer is required by law to provide such notice), or arising out of any alleged misstatements of fact or alleged omission of a material fact made by the Developer, its officers, directors, employees or agents to the City, the Community Facilities District, the underwriter of the Bonds and its counsel, the appraiser, the special tax consultant, the market absorption consultant or bond counsel regarding the Developer, its proposed developments, its property ownership, and any contractual arrangement it may enter into in a disclosure document describing the Community Facilities District and the risks relating to the Bonds. No provision of this Agreement shall in any way limit the extent of Developer’s responsibility for payment of damages resulting from the operations of Developer and its contractors; provided, however that Developer shall not be required to assume the defense or indemnify and save harmless any person or entity as to actions, damages, claims, losses or expenses resulting from the breach of this Agreement, the willful misconduct of such person or entity or their officers, agents, consultants or employees.
21. Insurance Requirements. For City Improvements bid after the effective date of this Agreement for which the Acquisition Price is paid, the Developer shall not commence work on such City Improvement under this Agreement prior to obtaining insurance with a company or companies acceptable to the City, nor shall the Developer allow any contractor or subcontractor to commence work on their respective contracts until all insurance required by this Agreement have been obtained.
The required insurance, endorsements and policy limits shall be as follows:
A. GENERAL LIABILITY
Developer shall obtain and maintain Commercial General Liability Insurance covering all operations by or on behalf of Contractor or their subcontractors providing insurance for bodily injury liability an d property damage liability for the limits of liability indicated below and including coverage for:
Premises and Operations
Products and Completed Operations
Contractual Liability
Explosion, collapse and Underground Hazards, including subsidence and any other form of earth movement (if applicable)
Personal Injury Liability
Independent Contractors
NOTE: Claims-made or Modified Occurrence Policy are NOT ACCEPTABLE.
1. LIMITS—Limits of liability shall be no less than:
a. Each Occurrence $2,000,000
b. Personal & Advertising Injury $2,000,000
c. Products/Completed Operations Aggregate $4,000,000 962
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d. General Aggregate $4,000,000
2. ENDORSEMENTS—Endorsements MUST be attached to certificate and added to your policy:
a. Additional Insured endorsement naming City as additional insureds. b. Primary and non -contributory wording endorsement stating that the Contractor’s insurance is primary and any insurance maintained by the additional insureds is non-contributory.
c. A Waiver o f Subrogation or Waiver of Transfer of Rights of Recovery Against Others To Us shall be issued in favor of those additional insureds named in A.2.a. above.
B. WORKERS COMPENSATION
Workers’ Compensation insurance shall be provided with statutory limits as required by applicable state law of regulation. If the Contractor is self-insured, it must provide proof of that fact.
1. LIMITS—Employer’s Liability Limits shall be no less than:
a. Each Accident for Bodily Injury by Accident $1,000,000 b. Each Employee for Bodily Injury by Disease $1,000,000 c. Policy Limit for Bodily Injury by Disease $1,000,000
2. ENDORSEMENTS—Endorsements MUST be attached to certificate and added to your policy:
a. WAIVER OF SUBROGATION—A Waiver of Subrogation or Waiver of Transfer of Rights of Recovery Against Others to Us shall be issued in favor of those additional insureds named in A.2.a. above.
C. AUTOMOBILE
Automobile Liability insurance shall include coverage for all owned (if any), hired and non-owned automobiles.
1. LIMITS—Limits of Liability shall be no less than:
a. Combined Single Limit $1,000,000
or
b. Bodily Injury Each Person Limit $1,000,000
c. Bodily Injury Per Occurrence Limit $1,000,000
d. Property Damage Per Occurrence Limit $1,000,000
2. ENDORSEMENTS—Endorsements MUST be attached to certificate and added to your policy:
a. Additional Insureds as provided in ISO form CA 00 01 or its equivalent naming those additional insureds named in A.2.a. above. b. Primary and non-contributory wording endorsement stating that the contractor’s insurance is primary and any insurance maintained by the additional insureds is non-contributory.
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c. Waiver of Subrogation as provided in ISO form CA 00 01 or its equivalent in favor of those additional insureds named in A.2.a. above.
22. Conflict With Other Agreements . Except as specifically provided herein, nothing contained herein shall be construed as releasing Developer from any condition of development or requirement imposed by any other agreement with City. In the event of a conflicting provision, such other agreement shall prevail unless such conflicting provision is specifically waived or modified in writing by City.
23. Notices. Any notice, payment or instrument required or permitted by this Agreement to be given or delivered to either Party shall be deemed to have been received when personally delivered or seventy-two (72) hours following deposit of the same in any United States Post Office in California, registered or certified, postage prepaid. Any notice to the Community Facilities District or the City shall be addressed to City of Murrieta, 1 Town Squar e, Murrieta, CA 92562, Attention:
City Manager. Any notice to Developer shall be addressed to Century Communities of California, LLC, 4695 MacArthur Court, Suite 300, Newport Beach, CA, 92660, Attention: Justin Brewer, Executive Vice President.
Each Party may change its address for delivery of notice by delivering written notice of such change of address to the other Party hereto.
24. No Gift or Waiver.
24.1 No Gift or Waiver for City Improvements . The Developer and the City acknowledge that:
(a) The Developer or its predecessor may have constructed or may be constructing City Improvements before funds that will be used to acquire them are available with the expectation that the Developer will be reimbursed for such City Improvements to the extent and in the manner set forth in this Agreement.
The City may inspect City Improvements and process Disbursement Request Forms even if funds from the proceeds of Bonds available at the time of such inspection and processing do not exist or are not then sufficient to satisfy the Disbursement Request in full. (b) The Developer may convey City Improvements to the City and the City may accept such City Improvements even if funds from the proceeds of Bonds available at the time of such conveyance and acceptance do not exist or are not then sufficient to satisfy the Disbursement Request in full.
If the City accepts City Improvements before a Disbursement Request is paid in full, the unpaid balance of the Disbursement Request will be paid from time to time, in any number of installments and irrespective of the length of time payment is deferred, as funds from the proceeds of Bonds become available.
(c) The Developer’s conveyance or dedication of City Improvements to the City before the availability of funds from the proceeds of Bonds to ac quire the City Improvements is not and shall not be deemed, a gift or a waiver of the Developer’s right to payment of the purchase price of such City Improvements pursuant to this Agreement. 964
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24.2 No Gift or Waiver for City Fees . The Developer and the City ackn owledge that:
(a) Prior to the availability of funds from the proceeds of Bonds, the Developer or its predecessor may have been or may be required to deposit funds to assure payment of applicable City Fees of the City.
The Developer or its predecessor has depo sited or will be depositing such funds with the expectation that the Developer will be reimbursed for these Deposits to the extent and in the manner set forth in this Agreement.
(b) The reimbursement of such Deposits pursuant to Section 17 of this Agreement may occur from time to time, in any number of installments and irrespective of the length of time payment is deferred, as funds become available.
The Developer’s deposit of such funds to the City before the availability of funds to reimburse the Developer is not, and shall not be deemed, a gift or a waiver of the Developer’s right to reimbursement of such Deposits pursuant to this Agreement.
25. General Provisions.
25.1 Successors and Assigns. This Agreement shall inure to the benefit of and be binding upon the City and the Developer and their respective heirs, executors, legal representatives, successors, and authorized assigns.
25.2 Amendment. This Agreement may be amended at any time but only in writing signed by each Party hereto.
25.3 Entire Agreement . This Agreement, an d the agreements referenced herein, contains the entire understanding and agreement between the Parties with respect to the matters provided for herein and supersedes all prior agreements and negotiations between the Parties with respect to the subject mat ter of this Agreement. There are no oral or written representations, understanding, undertakings or agreements which are not contained or expressly referred to herein, and any such representations, understandings or agreements are superseded by this Agree ment.
Failure by a Party to insist upon the strict performance of any of the provisions of this Agreement by the other Parties hereto, or the failure by a Party to exercise its rights upon the default of another Party, shall not constitute a waiver of suc h Party’s right to insist and demand strict compliance by such other Parties with the terms of this Agreement thereafter. This Agreement shall be binding upon, and enforceable by and against the Community Facilities District upon the establishment of the Community Facilities District.
25.4 Exhibits. All exhibits attached hereto are incorporated into this Agreement by reference.
25.5 Severability. If any part of this Agreement is held to be illegal or unenforceable by a court of competent jurisdiction, the remainde r of this Agreement shall be given effect to the fullest extent reasonably possible.
Waiver. Failure by a Party to insist upon the strict performance of any of the provisions of this Agreement by the other Parties hereto, or the failure by a Party to exercise its rights 965
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upon the default of another Party, shall not constitute a waiver of such Party’s right to insist and demand strict compliance by such other Parties with the terms of this Agreement thereafter.
25.6 No Third Party Beneficiaries . Except as provid ed explicitly in this Agreement, no person or entity shall be deemed to be a third party beneficiary hereof, and nothing in this Agreement (either express or implied) is intended to confer upon any person or entity, other than the City, the Community Facil ities District, the Developer, and the Security Provider (and their respective successors and assigns), any rights, remedies, obligations or liabilities under or by reason of this Agreement.
25.7 Counterparts. This Agreement may be executed in counterparts, ea ch of which shall be deemed an original, but all of which shall constitute but one instrument.
25.8 Assignment. Developer may assign all or any of its rights pursuant to this Agreement to a purchaser of all or any portion of the Developer Property. Such a pur chaser and assignee shall, as a condition to taking an assignment of such rights, enter into an assignment and assumption agreement with the City and Developer, in a form reasonably acceptable to Developer and the City, whereby such rights assigned are specified and such purchaser agrees, except as may be otherwise specifically provided therein, to assume the obligations of Developer pursuant to this Agreement and to be bound thereby. A company that acquires all of the assets of the Developer, including ownership of the Developer itself, shall be deemed a successor and shall not require an assignment or assumption agreement to be bound by, and enjoy the benefits of, this Agreement.
25.9 Governing Law. This Agreement and any dispute arising hereunder shall be governed by and interpreted in accordance with the laws of the State of California.
25.10 Construction of Agreement . This Agreement has been reviewed by legal counsel for both the City and Developer and shall be deemed for all purposes to have been jointly drafted by the City and Developer. No presumption or rule that ambiguities shall be construed against the drafting Party shall apply to the interpretation or enforcement of this Agreement.
25.11 Termination. The provisions of this Agreement related to the acqui sition and financing of the Improvements shall terminate and be of no further force or effect if the first series of Bonds for the CFD are not sold within ten years from the date of this Agreement unless extended by agreement of all the Parties. If the Ci ty is unable to sell the first series of Bonds for the CFD after diligent, commercially reasonable efforts to do so, this Agreement shall terminate and be of no further force and effect; provided, however, in such event, any collected Special Taxes remaini ng after the payment of administrative expenses of the CFD and reimbursement to the Developer of CFD formation costs shall be used to pay for Improvements in accordance with this Agreement and Developer shall receive a credit against City Fees otherwise pa yable to City in the amount so used to pay for City Fee Facility Improvements.
25.12 Attorneys’ Fees . In the event of any action or proceeding, including an arbitration or a reference pursuant to Section 638 et seq., of the Code of Civil Procedure brought by any Party against any other under this Agreement, the prevailing Party shall be entitled to recover its actual attorneys’ fees and all fees, costs and expenses incurred for prosecution, defense, consultation, or advice in such action or proceeding. In addi tion to the foregoing, the prevailing Party shall be entitled to its actual attorneys’ fees and all fees, costs and expenses incurred in any post -judgment 966
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proceedings to collect or enforce the judgment. This provision is separate and several and shall survive the merger of this Agreement into any judgment on this Agreement.
25.13 Venue and Forum . Any action at law or in equity arising under this Agreement brought by any Party hereto for the purpose of enforcing, construing or determining the validity of any pro vision of this Agreement shall be filed and tried in the Superior Court of the County of Riverside, State of California, and the Parties waive all provisions of law providing for the filing removal or change of venue to any other Court.
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IN WITNESS WHEREOF, the Parties have executed this Agreement as of the day and year written below.
DATED: ______, 2025
CITY OF MURRIETA, a political subdivision
of the State of California
By:
Justin Clifton, City Manager
ATTEST:
By:
Cristal McDonald, City Clerk
APPROVED AS TO FORM:
CITY ATTORNEY FOR THE CITY OF
MURRIETA
By:
Tiffany Israel, City Attorney
CENTURY COMMUNITIES OF
CALIFORNIA, LLC, a Delaware limited
liability company
By: __________________________
Name: __________________________
Its: __________________________
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LIST OF EXHIBITS
EXHIBIT A - DESCRIPTION OF DEVELOPER PROPERTY
EXHIBIT B - DESCRIPTION OF COST ESTIMATES
EXHIBIT C - MISCELLANEOUS IMPROVEMENTS
EXHIBIT D - DISBURSEMENT REQUEST FORM
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EXHIBIT A
DESCRIPTION OF DEVELOPER PROPERTY
Real property in the City of Murrieta, County of Riverside, State of California, described as follows:
All that certain real property situated in the City of Murrieta, County of Riverside, State of California, described as follows:
Parcel 1, as shown on that certain map entitled “Parcel Map No. 38185”, filed in Book 257, Pages 85 through 90 of Parcel Maps, in the Office of the County Recorder of Riverside County, State of California.
APN: 900-030-045
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EXHIBIT B
DESCRIPTION OF COST ESTIMATES OF THE IMPROVEMENTS (1)
I. CITY FEE FACILITY IMPROVEMENTS.
Estimated Cost of the City Fee Facility Improvements
Description Estimated Cost
Law Enforcement $63,801
Fire Facilities 67,932
Streets & Bridges 582,777
Traffic Signals 111,690
Storm Drainage 46,512
General Facilities 25,704
Park Land Facilities 466,497
Community Center 81,549
Public Library 41,310
Total City Fees Facility Improvements $ 1,487,772
II. CITY IMPROVEMENTS.
(1) Amounts are estimates and subject to change. The Acquisition Price will be funded with Bond proceeds.
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EXHIBIT C
DESCRIPTION OF THE MISCELLANEOUS IMPROVEMENTS
School District facilities included in the School District’s school fee programs, including but not limited to the following:
Description Estimated Cost
Statutory School Fees $ 1,334,698
CFD Premium 305,447
Total Estimated School District Facilities Fees $ 1,640,145
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EXHIBIT D
CFD NO. 2025-4 (RUSTIC MEADOWS) OF THE CITY OF MURRIETA
DISBURSEMENT REQUEST FORM
1. Community Facilities District No. 2025-4 (Rustic Meadows) of the City of Murrieta (the “CFD”) is hereby requested to pay from the ________________________ Account, or any applicable account or sub -account thereof, established by the CFD in connection with its 20__ Special Tax Bonds (the “Bonds”) to City of Murrieta (the “City”) as payee, the sum set forth below:
$_____________________ (the Requested Amount”)
2. The Requested Amount represents the payment of City Fees for ___ lot(s) within the boundaries of the CFD (the “Property”).
(Tract No. __________, Lot Nos. ________________).
Or, City Improvements as supported by attached documentation.
3. The Requested Amount is due and payable, and has not formed the basis of any prior request or disbursement.
4. The City, as payee, is hereby directing payment of the Requested Amount be payable to ________________ (the “Developer”), pursuant to the wiring instructions attached hereto.
5. The Requested Amount is authorized and payable pursuant to the terms of the certain Acquisition, Construction and Funding Agreement (the “Agreement”) between the City of Murrieta, acting for and on behalf of itself and the CFD and Developer.
6. Capitalized undefined terms used herein shall have the meaning ascribed to them in the Agreement.
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Dated: DEVELOPER:
________________
By:
Name:
Title:
Dated: CITY OF MURRIETA
By:
Its:
[ATTACH WIRING INSTRUCTIONS]
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JOINT COMMUNITY FACILITIES AND
SCHOOL FACILITIES MITIGATION AGREEMENT
4935-8726-3824v1/022972-0050
JOINT COMMUNITY FACILITIES AND
SCHOOL FACILITIES MITIGATION AGREEMENT
BY AND AMONG
CITY OF MURRIETA,
MURRIETA VALLEY UNIFIED SCHOOL DISTRICT AND
CENTURY COMMUNITIES OF CALIFORNIA, LLC
(Community Facilities District No. 2025-4 (Rustic Meadows) of the City of Murrieta)
THIS JOINT COMMUNITY FACILITIES AND SCHOOL FACILITIES MITIGATION AGREEMENT (“Agreement”) is made and entered into as of the ___ day of _______________, 2025, by and among THE CITY OF MURRIETA, a general law city organized and existing under the laws and Constitution of the State of California (“City”), the MURRIETA VALLEY UNIFIED SCHOOL DISTRICT, a California public school district organized and operating pursuant to the applicable provisions of the California Education Code (“School District”), and CENTURY COMMUNITIES OF CALIFORNIA, LLC, a Delaware limited liability company (“Developer”).
R E C I T A L S:
A. Developer intends to develop certain r eal property (the “Property”) located within the boundaries of the City and School District, consisting of approximately 9.99 gross acres within Tract Map 38185 (the “Project”) to be developed with approximately 153 dwelling units, as more fully depicted in Exhibit “A” attached hereto.
B. The Project will require the payment to School District of all or a part of Statutory School Fees (defined below) required to finance School Facilities (defined below). In lieu of the Statutory School Fees, the Mitigation Amount (as defined below) is expected to be paid to School District, in whole or in part, from Bond Proceeds (defined below) of the hereinafter described Community Facilities District (the “CFD”). The City Facilities (defined below) and School Facilities are sometimes collectively referred to herein as the “Facilities.” C. Pursuant to Developer’s request, the City Council of the City is in the process of forming the hereinafter-described CFD pursuant to the Act to finance all or a portion of the Facilities. The City will have responsibility for the formation and administration of the CFD.
D. The City is authorized by Section 53313.5 of the Act to finance, by means of the CFD, the School Facilities. This Agreement constitutes a “joint community facilities agreement” (“JCFA”) within the meaning of Section 53316.2 of the Act by and among the City, School District and Developer, pursuant to which the CFD will be authorized to finance the School Facilities. Pursuant to Section 53316.2(b) of the Act, a JCFA may be approved by two or more public agencies prior to the adoption of a resolution authorizing the issuance of bonds.
As provided by Section 53316.6 of the Act, City is resp onsible for constructing, providing, maintaining and operating the City Facilities and the School District is responsible for constructing, providing, maintaining and operating the School Facilities. 975
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E. The provision of the City Facilities and School Facilities is necessitated by the Project, and the Parties hereto find and determine that the residents of the City, School District and CFD will be benefited by the financing of the City Facilities and School Facilities, and that this Agreement is beneficial to the interests of such residents.
ARTICLE I
GENERAL PROVISIONS
Section 1.1. Recitals
The above recitals are true and correct and are hereby incorporated by this reference.
Section 1.2. Definitions
Unless the context clearly otherwise requires, the terms defined in this Section shall, for all purposes of this Agreement, have the meanings herein specified. (a) “Act” means the Mello-Roos Community Facilities Act of 1982, as amended, commencing with California Government Code Section 53311, et seq. (b) “Agreement” means this Joint Community Facilities and School Facilities Mitigation Agreement.
(c) “Amount per Square Foot” means 125% of the amount per square foot authorized to be used by the School District to calculate the then applicable Statutory School Fees. As of the date of this Agreement, that amount is $6.46 (1.25 x $5.17 per square foot). (d) “Assessable Square Feet” means the square footage within the perimeter of a residential structure, excluding any carport, walkways, garages, overhangs, enclosed patios, detached necessary structures or similar areas. For purposes of determining the Assessable Square Feet of a dwelling unit, the School District may rely on the square footage contained on the building permit issued for the dwelling unit. (e) “Bond Proceeds” shall mean those net funds generated by the sale of the Bonds.
(f) “Bond Resolution” means that Resolution, Resolution S upplement, Fiscal Agent Agreement, Indenture of Trust or other equivalent document(s) providing for the issuance of the Bonds.
(g) “Bonds” shall mean those bonds, or other securities, issued by, or on behalf of the CFD, as authorized by the qualified electors within the CFD. (h) “Certificates of Compliance” means those certificates issued by School District pursuant to Education Code Section 17620(b) to Developer certifying that Developer has paid the Deposit in order to obtain a building permit for a dwelling unit . (i) “CFD” means Community Facilities District No. 2025 -4 (Rustic Meadows) of the City of Murrieta.
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(j) “City Facilities” means the right of way of acquisition, streetlight, flood control, storm drainage, landscape and irrigation, environmental mitigation purchase, library, park, law enforcement, fire, streets and bridges, traffic, administration and community center facilities, and other public facilities of the City, including the foregoing public facilities which are included in the City’s fee programs with res pect to such facilities and authorized to be financed under the Act.
(k) “Deposits” shall mean all amounts advanced to School District by Developer prior to the issuance and sale of the Bonds, as security for the future payment, with Bond Proceeds, of the Statutory School Fees due in connection with Certificates of Compliance issued by School District for dwelling units within the Project prior to the issuance and sale of the Bonds and the funding of the School Fee Fund.
(l) “Disbursement Request” means a reque st for payment relating to School Facilities in the form attached hereto as Exhibit “B.”
(m) “Mitigation Amount” means for each dwelling unit within the Project, the Amount per Square Foot multiplied by the Assessable Square Feet of the dwelling unit. (n) “Party” or “Parties” shall mean any one or all of the parties to this Agreement and the CFD.
(o) “Rate and Method” means the Rate and Method of Apportionment of the Special Tax authorizing the levy and collection of special taxes within the CFD pursuant to proceedings undertaken for the formation of the CFD pursuant to the Act. (p) “School Facilities” means those TK-12 school sites, preschool facilities, school facilities, including classrooms, on -site office space at a school, central support and administrative facilities , interim housing, furniture, equipment, technology, buses, and transportation facilities needed by School District in order to serve the student population to be generated as a result of development of the property within the CFD, and also includes costs associated with the maintenance and operation of school facilities in accordance with the Act. (q) “School Fee Fund” means the fund(s), account(s) or sub-account(s) of the CFD (regardless of its designation within the Bond Resolution) into which a portion of t he Bond Proceeds may be deposited in accordance with the Bond Resolution to finance the School Facilities.
(r) “Statutory School Fees” means the then-current applicable fee levied on new residential development as “Level 1” Fees pursuant to Education Code Section 17620 and Government Code Sections 65995 et seq. or as “ alternative school fees” pursuant to Government Code Section 65995.5 (also known as “Level 2 Fees”). (s) “State” means the State of California.
(t) “Special Taxes” means the special taxes authorized to be levied and collected pursuant to the Rate and Method.
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ARTICLE II
FORMATION OF THE CFD AND ISSUANCE OF BONDS
Section 2.1. Formation of the CFD
The City, pursuant to the written request of the Developer, initiated proceedings pursuant to the Act for the formation of the CFD, the authorization of the Special Taxes within the CFD and the authorization of Bonds on behalf of the CFD, with the qualified electors approving the levy of the Special Taxes and the sale of the Bonds.
Section 2.2. Statutory School Fee Deposits
Subsequent to the execution of this Agreement and prior to School District’s receipt of Bond Proceeds, Developer may obtain Certificates of Compliance for dwelling units within the Project by posting Deposits equivalent to the Statutory School Fees due with respect to such dwelling units.
Deposits posted prior to the issuance of Bonds will be held unexpended by School District and then released to Developer upon the sale of Bonds to the extent the Mitigation Amounts for such dwelling units have been satisfied by the deposit of Bond Proceeds in the School Fee Fund. After the issuance of the last series of Bonds (other than Bonds issued for refunding purposes only), to the extent that all Bond Proceeds deposited into the School Fee Fund are not sufficient to satisfy the Mitigation Amounts for such dwelling units, the portion of the Deposits not satisfied with Bond Proceeds shall be retained and used by School District to construct School Facilities.
Section 2.3. Issuance and Sale of Bonds
The City Council of the City, acting as the legislative body of the CFD, may, in its sole discretion, in accordance with its adopted policies, adopt the Bond Resolution and issue the Bonds. Prior to the City Council of the C ity adopting the Bond Resolution, Developer shall notify School District, as soon as practicable, of: i) the estimated issuance date for the Bonds and ii) the estimated amount of proceeds to be deposited in the School Fee Fund. Such initial notification to District shall include a copy of the proposed financing schedule and, when available, information (including pricing information) relating to the sale of the Bonds.
Section 2.4. Bond Proceeds
In the event that the CFD is formed and Bonds are issued, the City, or the CFD (as may be applicable), and Developer shall determine the amount of Bond Proceeds to be deposited into the School Fee Fund or any applicable accounts or subaccounts thereof. The Parties hereby acknowledge and agree that, in the event Bonds are issued, Bond Proceeds, to the extent available after the funding of the City Facilities, will be utilized to fund School Facilities in an amount up to the Mitigation Amount for all dwelling units planned for the Project, and prior to and with priority over the funding of fees and facilities of any other public agency participating as a joint community facilities agreement partner with the CFD. As Bond Proceeds are deposited in the School Fee Fund, Developer shall receive an Assessable Square Feet credit calculated by dividing the amount deposited into the School Fee Fund by the Amount per Square Foot as of the date of issuance of the Bonds. The purpose of this Agreement is to provide a mechanism by which the CFD may levy Special Taxes and issue Bonds to provide a source of funds to finance School Facilities in lieu of the payment of Statutory School Fees. In the event that Bond Proceeds, including investment earnings thereon, are not available or 978
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sufficient to satisfy the obligation, then Develop er shall remain obligated to satisfy the Mitigation Amount due to School District.
Section 2.5. Assessable Square Feet Credit Account
(a) After being notified by Developer that Bond Proceeds have been deposited into the School Fee Fund, School District will establish a cre dit account (“Credit Account”) in the amount of Assessable Square Feet for which the Mitigation Amount is deemed satisfied. Such determination shall be made by dividing the amount deposited in the School Fee Fund by the Amount per Square Foot as of the date of issuance of the Bonds. (b) Once established, School District shall deduct from the Credit Account the Assessable Square Feet of dwelling units for which Deposits had been made pursuant to Section 2.2 and return the corresponding Deposits to Developer. If such deduction would result in a negative balance within the Credit Account, School District shall retain a portion of the Deposits such that when added to the Bond Proceeds deposited in the School Fee Fund would result in a balance of zero (0) Assessable Square Feet within the Credit Account. Such retained Deposits may then be used by School District to fund School Facilities. (c) Developer may obtain Certificates of Compliance for dwelling units within the Project by requesting that School Distric t deduct from the Credit Account the Assessable Square Feet of the dwelling unit for which the Certificate of Compliance is being sought. In the event that there is an insufficient balance in the Credit Account to cover a request for a Certificate of Compliance, Developer may only obtain a Certificate of Compliance by paying the remaining Mitigation Amount in cash.
Section 2.6. Disbursements for School Facilities
(a) From time to time following the funding of the School Fee Fund, School District may notify the City in writing and request a disbursement from the School Fee Fund to fund School Facilities by executing and submitting an executed Disbursement Request to the City.
Upon receipt of such Disbursement Request completed in accordan ce with the terms of this Agreement, the CFD shall wire transfer or otherwise pay to School District, or the designated payee as identified by the School District, such requested funds to the extent that Bond Proceeds are available in the School Fee Fund for such purpose. (b) School District agrees that prior to submitting a Disbursement Request requesting payment from the CFD, it shall review and approve all costs included in its request and will have already paid or incurred such costs of School Facilities fr om its own funds subsequent to the date of this Agreement or will disburse such amounts to pay the costs of School Facilities following receipt of funds from the CFD. In the event that School District does not disburse any Bond Proceeds received by it to third parties within five banking days of receipt, it will trace and report to the CFD all earnings, if any, earned by School District, from the date of receipt of such Bond Proceeds by School District to the date of expenditure by School District for capital costs of the School Facilities. School District agrees that in processing the above disbursements it will comply with all legal requirements for the expenditure of Bond Proceeds under the Internal Revenue Code of 1986 and any amendments thereto.
Section 2.7. Responsibility for Mitigation Amounts
(a) The Parties hereto acknowledge and agree that the final responsibility for the payment of the Mitigation Amount for each dwelling unit within the Project lies with Developer. 979
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(b) If the amounts derived from Bond Proceeds for School Facilities deposited in the School Fee Fund, including investment earnings thereon, if any, are not sufficient to fund the total cost of the Mitigation Amounts, the Parties hereto agree that all responsibility and liability for the amount of such shortfall shall be and remain with Developer, and shall not lie with the CFD, School District, or the City.
(c) School District agrees to utilize or apply funds provided to it by the CFD, in accordance with the Act, the Local Agency Special Tax and Bond Accountability Act (described in Section 4.1 hereof), the requirements of federal tax law compliance with which is necessary in order for interest on the Bonds to be excluded from the gross income of the recipients for federal income tax purposes and other applicable law, and as set forth herein. (d) School District shall indemnify, defend, and hold harmless, the City and the CFD for any act or omission of the School District with respect to this Agreement; provided, however, that the School District shall not be required to indemnify any person or entity as to damages resulting from negligence or willful misconduct of such person or entity or their officers, agents or employees.
Section 2.8. Mitigation of Statutory School Fee Obligations of Project Developer and School District agree that payment of the Mitigation Amount to School District with respect to any dwelling unit within the Project, whether with Bond Proceeds or otherwise, shall constitute full mitigation of the obligations due School District in connection with the issuance of a Certificate of Compliance with respect to such dwelling unit.
School District shall have no obligation, responsibility, or authority with respect to the issuance and sale of the Bonds, the Bond Proceeds available to finance the construction of School Facilities, the payment of the principal and interest on the Bonds, or for the levy of the Special Taxes to provide for the payment of principal and interest thereon. The City shall have the sole authority and responsibility for all such matters.
The Parties hereto specifically agree that, except as otherwise provided for in Section 2.4, the liabilities of the CFD, including liabilities, if any, of the CFD pursuant to the documents providing for the issuance of Bonds, including the Bond Resolution, shall not be or become liabilities of School District.
Section 2.9. Waiver of State and Local Funding Credits and Right to Protest In consideration of School District’s agreement with respect to the Project to accept the Mitigation Amounts as full mitigation of the impact of the students generated by the Project upon the School Facilities, and provided School District does not breach such agreement, Developer agrees to waive all past, present and future credit against, or fair share reduction in, Mitigation Amounts based upon State matching funding provided to School District or the proceeds from a District-wide special tax or general obligation bond authorization, or School Facilities Improvement District (“SFID”) bond authorization for school facil ities. In addition, Developer knowingly waives its right of protest as may be afforded by Government Code Section 66020 or any other provision of law, so long as School District is not in breach of this Agreement.
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Section 2.10. Developer Advance
Within ten (10) business days of execution of this Agreement by School District, if not previously provided, Developer agrees to deposit with School District the amount of Fifteen Thousand Dollars ($15,000) to be used to advance fund School District’s costs in entering into and a dministering the terms of this Agreement. Such advance by Developer may be reimbursed from the proceeds of the sale of the Bonds, but under no circumstances shall School District or the City be obligated to pay Developer from any other source of funds. Should this Agreement not be approved for any reason, any remaining balance of the amounts advanced by Developer pursuant to this Section shall be refunded to Developer upon written notice to School District from City or Developer that that this Agreement will not be approved and after application of such advance to the payment of District’s costs incident to entry into this Agreement, including without limitation, legal fees associated with the negotiation hereof.
Section 2.11. Administration of the CFD
The City shall have the power and duty to provide for the administration of the CFD, subject to the terms hereof and the Bond Resolution, including employing and compensating all consultants and providing for the various other administration duties set forth in this Agreement. It is understood and agreed by Parties hereto that School District was not or will not be considered a participant in the proceedings relative to formati on of the CFD or the issuance of the Bonds, other than as a Party to this Agreement.
ARTICLE III
TERM AND TERMINATION
Section 3.1. Effective Date
This Agreement shall become effective and of full force and effect as of the date (“Effective Date”) it is approved and executed by the last of the Governing Board of School District, Developer and the City Council of the City, to be confirmed by the execution hereof by the authorized representatives of the Parties hereto.
Section 3.2. Termination
If the CFD is unable to complete the sale of the Bonds prior to January 1, 2040, any obligation of the Parties, if any, to finance all or any portion of the Mitigation Amounts with CFD bond proceeds pursuant to this Agreement shall automatically terminate and be of no further force or effect. In such event, School District shall retain all Deposits related to the dwelling units within the Project for which Certificates of Compliance were issued based upon the posting of such Deposits; thereafter, in order to obtain an additional Certificate of Compliance for a unit within the Project, Developer shall be required to pay School District the Mitigation Amount for such unit.
ARTICLE IV
ARTICLE IV ADDITIONAL GENERAL PROVISIONS
Section 4.1. Recordkeeping; Inspection of Records
School District hereby agrees to keep and maintain full and accurate records of all amounts, if any, paid to School District for Deposits, Mitigation Amounts and investment earnings thereon and the City or CFD, or the Fiscal Agent on their behalf, hereby agrees to keep 981
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and maintain full and accurate records of all amounts, and investment earnings, if any, disbursed to School District from the School Fee Fund. Each Party further agrees to make such records available to any other Party hereto, including Developer, during normal business hours upon reasonable prior notice. All such records shall be kept and maintained by the appropriate Party as provided by applicable law and their respective policies. School District and Developer agree that they will cooperate with the CFD and the City in providing documentation, reports or other data reasonably required and requested by the City or the CFD in meeting the reporting requirements of the CFD under Sections 50075.1, 50075.3, and 50075.5 and Article 1.5 (commencing with Section 53410) of Chapter 3 of Part 1 of Division 2 of Title 5 of, the Government Code (collectively, the “Local Agency Special Tax and Bond Accountability Act”).
School District’s reporting obligations pursuant to this Section shall be limited to providin g reports or other data detailing the following: (A) the amount of CFD funds received by School District to fund School Facilities, (B) the amount of such CFD funds deposited in separate funds or accounts of School District reflecting Deposits, Mitigation Amounts and the number of dwelling units for which such amounts apply, and (C) School Facilities that have been acquired or constructed, in whole or in part, with CFD funds. School District’s reporting obligation shall terminate when all CFD funds have been disbursed from the School Fee Fund, or from any account or subaccount thereof that has been allocated Bond Proceeds to finance Mitigation Amounts, and School District has provided to the City a report for the last disbursement received by School District. If no CFD funds have been received by School District or used to finance School Facilities since the previous report, no report shall be required to be delivered by School District and the City may rely upon the previous reports so delivered.
Section 4.2. Partial Invalidity
If any part of this Agreement is held to be illegal or unenforceable by a court of competent jurisdiction, the remainder of this Agreement shall be given effect to the fullest extent reasonably possible.
Section 4.3. Successors and Assigns
Developer may assign its rights pursuant to this Agreement to a purchaser of the Property, or any portion thereof, and such purchaser, assignee and property owner shall assume the obligations of Developer pursuant to this Agreement and to be bound thereby. This Agreement shall be binding upon and inure to the benefit of the successors and assigns of the Parties hereto.
Section 4.4. Notice
Any notice, payment or instrument required or permitted by this Agreement to be given or delivered to any Party or other person shall be deemed to have been received when personally delivered or upon deposit of the same in the United States Post Office registered or certified, postage prepaid, addressed as follows:
City: City of Murrieta
1 Town Square
Murrieta, CA 92562
Attention: Director of Finance
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With a copy to: Stradling Yocca Carlson & Rauth
660 Newport Center Drive, Suite 1600
Newport Beach, CA 92660
Attention: Brian Forbath, Director of Finance
School District: Murrieta Valley Unified School District 41870 McAlby Court
Murrieta CA 92562
Attention: Deputy Superintendent, Business and Operations
With a copy to: Dannis Woliver Kelley
750 B Street, Suite 2600
San Diego, CA 92101 Attention: Karina Samaniego, Esq.
Developer: Century Communities of California, LLC
4695 MacArthur Court, Suite 300
Newport Beach, CA 92660
Attention: Justin Brewer, Executive Vice President
With a copy to: O’Neil LLP
19800 MacArthur Blvd., Suite 650
Irvine, CA 92612
Attention: John P. Yeager, Esq.
Each Party can change its address for delivery of notice by delivering written notice of such change or address to the other Parties within ten (10) calendar days prior to such change.
Section 4.5. Captions
The captions to Sections used herein are for convenience purposes only and ar e not part of this Agreement.
Section 4.6. Governing Law
This Agreement shall be governed by, and construed in accordance with, the laws of the State of California applicable to contracts made and performed in said State.
Section 4.7. Entire Agreement
This Agreement contains the entire agreement between the Parties with respect to the matters provided for herein and supersedes all prior agreements and negotiations between the Parties with respect to the subject matter of this Agreement.
Section 4.8. Amendments
This Agreement may be amended or modified only in writing executed by the authorized representative(s) of each of the Parties hereto.
Section 4.9. Section 4.9 Waiver
The failure of any Party hereto to insist on compliance within any of the terms, covenants or conditions of this Agreement by any other Party hereto, shall not be deemed a 983
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waiver of such terms, covenants or conditions of this Agreement by such other Party, nor shall any waiver constitute a relinquishment of any other right or power for all or any other times.
Section 4.10. Cooperation and Execution of Documents
The Parties hereto agree to complete and execute any further or additional documents which may be necessary to complete or further the terms of this Agreement.
Section 4.11. Attorneys’ Fees
In the event of the bringing of any action or suit by any Party against any other Party arising out of this Agreement, the Party in whose favor final judgment shall be entered shall be entitled to recover from the losing Party all costs and expenses of suit, including reasonable attorneys’ fees.
Section 4.12. Section 4.12 Exhibits
The following exhibits attached hereto are incorporated into this Agreement by reference.
Exhibit Description
“A” Property Depiction
“B” Disbursement Request Form
Section 4.13. Signatories
The signatories hereto represent that they have been appropriately authorized to enter into this Agreement on behalf of the Party for whom they sign.
Section 4.14. Execution in Counterparts
This Agreement may be executed in counterparts, each of which shall be deemed an original.
[Signatures on following page]
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IN WITNESS WHEREOF, the Parties hereto have executed this Joint Community Facilities and School Facilities Mitigation Agreement as of the day and year written above.
MURRIETA VALLEY UNIFIED SCHOOL
DISTRICT
By:
Dr. Ward Andrus, Superintendent
ATTEST:
By:
Eleanor Briggs, Clerk of the Board of Education
of the Murrieta Valley Unified School District
Developer:
CENTURY COMMUNITIES OF CALIFORNIA, LLC,
a Delaware limited liability company
By:
Name:
Its:
CITY OF MURRIETA
By:
Justin Clifton, City Manager
ATTEST:
By
Cristal McDonald, City Clerk
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EXHIBIT “A”
PROPERTY DEPICTION
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EXHIBIT “B”
DISBURSEMENT REQUEST FORM
1. Community Facilities District No. 2025 -4 (Rustic Meadows) of the City of Murrieta (“CFD No. 2025-4”) is hereby requested to pay from the School Fee Fund, or any applicable account or subaccount thereof, established by CFD No. 2025 -4 in connection with its Special Tax Bonds (the “Bonds”) to Murrieta Valley Unified School District (“MVUSD”), as payee, the sum set forth below:
$ (the “Requested Amount”)
2. The Requested Amount is due and payable, has not formed the basis of any prior request or disbursement and is being made with respect to the obligation of the Property to pay Mitigation Amounts to __________ (“Payee”) as detailed below:
Payment Instructions:
3. The Requested Amount is authorized and payable pursuant to the terms of that certain Joint Community Facilities and School Facilities Mitigation Agreement, dated as of __________, 2025, by and among Murrieta Valley Unified School District, Century Communities of California, LLC, a Delaware limited liability company, and the City of Murrieta (the “JCFA”). By requisitioning Bond proceeds as described above, MVUSD is not passing upon, determining or assuming the tax-exempt status of the Bonds for federal or California income tax purposes.
4. Capitalized undefined terms used herein shall have the meanings ascribed to them in the JCFA.
Date: Murrieta Valley Unified School District
By:
987
CITY OF MURRIETA
City Council Meeting Agenda
Report
7/15/2025
Agenda Item No. 22.
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Cristal McDonald, City Clerk
PREPARED BY: Kimberly Ramirez, Deputy City Clerk
SUBJECT:
Appointment to the Unscheduled Vacancy of the Planning Commission
RECOMMENDATION
Conduct an interview for the one Planning Commission vacancy; and Appoint a Regular Member of the Planning Commission, term ending December 2028; OR Take another action the City Council deems appropriate.
PRIOR ACTION/VOTE
On January 21, 2025, the City Council voted to appoint 2 regular members and 1 alternate member to the Planning Commission (Vote: 4-1).
On January 21, 2025, the City Council eliminated the City Council Ad-Hoc Appointments Subcommittee (Vote:
5-0).
CITY COUNCIL GOAL
Foster and promote an engaged, connected and caring community.
DISCUSSION
The City of Murrieta (City) has five (5) active commissions and committees, each one focusing on a specific subject matter to advise and provide recommendations to the City Council. The Planning Commission’s (Commission) membership composition consists of five (5) Regular Members and two (2) Alternate Members.
The primary purpose of the Commission is to focus on the physical environment within the City. It conducts public hearings and makes decisions or recommendations about development on behalf of the City Council. It also makes recommendations to the City Council on General Plan amendments, specific plans and zone changes (MMC 2.44.015).
During the annual scheduled vacancy appointments, and in accordance with City Council Policy No. 100-7, the City Council appointed the following two regular members through December 2028, and an Alternate No. 1 CITY OF MURRIETA Printed on 7/10/2025Page 1 of 2
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7/15/2025
Agenda Item No. 22.
the City Council appointed the following two regular members through December 2028, and an Alternate No. 1 Member through December 2026:
1. Tom Beamish, Regular Member (term December 31, 2028)
2. Michael DeSena, Regular Member (term December 31, 2028)
3. Sara Halvorson Saha, Alternate 1 Member (term December 31, 2026) On May 12, 2025, Tom Beamish provided his immediate resignation, advancing Alternate No. 1 to fulfill the vacancy through 2028. Unfortunately, the alternate is currently unable to serve as a Regular Member at this time but will remain as the Alternate No. 1 member.
The City Clerk posted and published a Call for Applications, reached out to all active applicants on file for the Commission, and conducted public outreach at a City event. Since the application period closed, and the City Council requested to interview all interested applicants, the City Council will review, interview, and appoint one Regular Member with a term ending December 31, 2028.
The City received interest from three applicants; however, two applicants were found to be ineligible as they reside outside of City boundaries. The single applicant to be interviewed is John Rose. The applicant has been informed of the Commission interview taking place during the July 15, 2025, City Council meeting and was encouraged to attend. The applicant also understands that participating in the Commission requires applicants to know, appreciate, and comprehend public issues and concerns related to the City, as expected of someone who has resided in the City for at least three years.
FISCAL IMPACT
None.
ATTACHMENTS
None*
*All Commission and Committee applications are on file with the City Clerk and can be viewed by contacting (951) 461- 6030. Non-redacted applications have been provided to the City Council under separate cover and in advance of the July 15, 2025, City Council meeting.
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