3 Rate and Method of Apportionment
CFD No. 2022-1N (IA No. 4) (Olsen/South Chandler Ranch - Facilities) “Exempt Welfare Exemption Property” means, for each Fiscal Year, an Assessor’s Parcel that, prior to the issuance of Bonds, received a welfare exemption under subdivision (g) of Section 214 of the California Revenue and Taxation Code (or any successor statute), as indicated in the County’s assessor’s roll finalized as of January 1 of the previous Fiscal Year, and is exempt from the Special Tax pursuant to Section 53340(c) of the Act.
"Final Map" means (i) a final map, or portion thereof, approved by the County pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) that creates individual lots or parcels for which Building Permits may be issued without further subdivision, or (ii) for condominiums, a final map approved by the County and a condominium plan recorded pursuant to California Civil Code Section 4285 creating such individual lots or parcels.
"Final Mapped Property" means all Assessor’s Parcels of Taxable Property: (i) that are included in a Final Map 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 has not been issued on or before May 1 preceding the Fiscal Year in which the Special Tax is being levied.
"Fiscal Year" means the period starting July 1 and ending on the following June 30. "Improvement Area No. 4” or "IA No. 4” means Improvement Area No. 4 of CFD No. 2022-1N.
"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.
"Land Use Class" means any of the categories listed in Table 1 herein. "Maximum Special Tax" means the maximum Special Tax, determined in accordance with Section C below, that can be levied in any Fiscal Year on any Assessor’s Parcel within CFD No. 2022-1N (IA No. 4).
“Non-Residential Floor Area” means the total building square footage of the nonresidential building(s) located on an Assessor’s Parcel, measured from outside wall to outside wall, not including space devoted to stairwells, public restrooms, lighted courts, vehicle parking and areas incident thereto, and mechanical equipment incidental to the operation of such building. The determination of Non-Residential Floor Area shall be made by reference to the Building Permit(s) issued for such Assessor’s Parcel and/or to the appropriate records kept by the City, as reasonably determined by the CFD Administrator.
"Non-Residential Property" means all Assessor's Parcels of Taxable 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.
"Outstanding Bonds" means all Bonds which are deemed to be outstanding under the Indenture.
"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 Attachment 2
4 Rate and Method of Apportionment
CFD No. 2022-1N (IA No. 4) (Olsen/South Chandler Ranch - Facilities) obligation in full for an Assessor’s Parcel, as described in Section G.1. “Property Owner’s Association” means, collectively, any property owner association or homeowners association, including any master or sub-association, created for CFD No. 2022-1N (IA No. 4).
"Property Owner Association Property" means, for each Fiscal Year, any property within the boundaries of CFD No. 2022-1N (IA No. 4) that was owned by a Property Owner Association, as of January 1 of the prior Fiscal Year. "Proportionately" means, for Developed Property, that the ratio of the actual Special Tax levy to the Assigned Special Tax is equal for all Assessor’s Parcels of Developed Property. For Undeveloped Property, "Proportionately" means that the ratio of the actual Special Tax levy per Acre to the Maximum Special Tax per Acre is equal for all Assessor’s Parcels of Undeveloped Property. For Taxable Property Owner Association Property, "Proportionately" means that the ratio of the actual Special Tax levy per Acre to the Maximum Special Tax per Acre is equal for all Assessor’s Parcels of Taxable Property Owner Association Property. For Taxable Public Property, "Proportionately" means that the ratio of the actual Special Tax levy per Acre to the Maximum Special Tax per Acre is equal for all Assessor’s Parcels of Taxable Public Property.
"Public Property" means, for each Fiscal Year, any property within CFD No. 2022-1N (IA No. 4) that is owned by, irrevocably offered for dedication to, or dedicated to the federal government, the State, the City, or any other public agency as of June 30 of the prior Fiscal Year; provided however that any property leased by a public agency to a private entity and subject to taxation under Section 53340.1 of the Act shall be taxed and classified in accordance with its use. To ensure that property is classified as Public Property in the first Fiscal Year after it is acquired by, irrevocably offered for dedication to, or dedicated to a public agency, the property owner shall notify the CFD Administrator in writing of such acquisition, offer, or dedication not later than June 30 of the Fiscal Year in which the acquisition, offer, or dedication occurred. “Rate and Method of Apportionment” means this Rate and Method of Apportionment of Special Taxes, City of Paso Robles, Community Facilities District No. 2022-1N (Olsen/South Chandler Ranch - Facilities).
"Residential Floor Area" means all of the square footage of living area within the perimeter of a Dwelling Unit, not including any carport, walkway, garage, overhang, patio, enclosed patio, or similar area. The CFD Administrator shall determine the Residential Floor Area based upon the Building Permit(s) issued for such Dwelling Unit.
"Residential Property" means Developed Property, for which a Building Permit has been issued for purposes of constructing one or more Dwelling Units. "Special Tax" means a special tax levied in any Fiscal Year to pay the Special Tax Requirement.
“Special Tax Requirement” means that amount required in any Fiscal Year to: (i) pay debt service on all Outstanding Bonds; (ii) pay periodic costs on the Bonds, including but not limited to, credit enhancement and rebate payments on the Bonds; (iii) pay Administrative Expenses; (iv) pay any amounts required to establish or replenish any reserve funds for all Outstanding Bonds to the extent such establishment or Attachment 2
5 Rate and Method of Apportionment
CFD No. 2022-1N (IA No. 4) (Olsen/South Chandler Ranch - Facilities) replenishment has not been included in a computation of the Special Tax Requirement in a previous Fiscal Year; (v) pay directly for the acquisition or construction of Authorized Facilities to the extent that inclusion of such amount does not increase the Special Tax levy on Final Mapped Property or Undeveloped Property; and (vi) pay for reasonably anticipated Special Tax delinquencies based on the historical delinquency rate for CFD No. 2022-1N (IA No. 4) as determined by the CFD Administrator; less (vii) a credit for funds available to reduce the annual Special Tax levy, as determined by the CFD Administrator pursuant to the Indenture. "State" means the State of California.
"Taxable Property" means all of the Assessor’s Parcels within the boundaries of CFD No. 2022-1N (IA No. 4) which are not exempt from the Special Tax pursuant to law or Section E below.
"Taxable Property Owner Association Property" means all Assessor’s Parcels of Property Owner Association Property that are not exempt pursuant to Section E below.
"Taxable Public Property" means all Assessor’s Parcels of Public Property that are not exempt pursuant to Section E below.
“Total Floor Area” means the sum of the Residential Floor Area and the NonResidential Floor Area located on an Assessor’s Parcel. "Trustee" means the trustee or fiscal agent under the Indenture. "Undeveloped Property” means all Assessor’s Parcels of Taxable Property which are not Developed Property, Final Mapped Property, Public Property, or Property Owner’s Association Property.
B ASSIGNMENT TO LAND USE CLASSES
Each Fiscal Year, beginning with Fiscal Year 2023-2024, each Assessor’s Parcel of Taxable Property shall be classified as Developed Property, Final Mapped Property, Undeveloped Property, Public Property and/or Property Owner’s Association Property.
Assessor’s Parcels of Developed Property shall further be classified as Residential Property or Non-Residential Property. Each Assessor’s Parcel of Residential Property shall be further categorized into Land Use Classes based on its Residential Floor Area and assigned the appropriate Assigned Special Tax.
The determination of the Residential Floor Area shall be made by reference to the original Building Permit issued for the Dwelling Unit of an Assessor’s Parcel. The Building Permit may include any subsequent document(s) authorizing new construction on an Assessor’s Parcel that are issued or changed by the City after the original issuance, as determined by the CFD Administrator as necessary to fairly allocate Special Tax to the Assessor’s Parcel, provided that following such determination the Maximum Special Tax that may be levied on all Assessor’s Parcels of Taxable Property in each year will be at least 1.1 times annual debt service on all outstanding Bonds plus the estimated annual Administrative Expenses in each year.
C MAXIMUM SPECIAL TAX RATE
C.1 Developed Property
The Maximum Special Tax for each Assessor’s Parcel classified as Developed Property Attachment 2
6 Rate and Method of Apportionment
CFD No. 2022-1N (IA No. 4) (Olsen/South Chandler Ranch - Facilities) shall be the greater of (i) the amount derived by application of the Assigned Special Tax or (ii) the amount derived by application of the Backup Special Tax.
Assigned Special Tax
Each Fiscal Year, each Assessor’s Parcel of Residential Property or Non-Residential Property shall be subject to an Assigned Special Tax. The Assigned Special Tax 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
Land Use
Class Description Assigned Special Tax
1 RESIDENTIAL PROPERTY (>= 2,100 SF) $4,471 PER DWELLING UNIT 2 RESIDENTIAL PROPERTY (1,900 - 2,099 SF) $4,308 PER DWELLING UNIT 3 RESIDENTIAL PROPERTY (< 1,900 SF) $4,145 PER DWELLING UNIT 4 NON-RESIDENTIAL PROPERTY $90,143 PER ACRE
Backup Special Tax
The Backup Special Tax for each Assessor’s Parcel of Residential Property in a Final Map shall be computed by multiplying the Acreage of all Taxable Property (excluding Acreage associated with current or expected Non-Residential Property, Taxable Public Property, or Taxable Property Owner Association Property, if any) in such Final Map by $90,143, and dividing the product by the number of such Assessor’s Parcels (i.e., the number of residential lots) in such Final Map.
Notwithstanding the foregoing, if all or any portion of a Final Map is subsequently changed or modified, then the Backup Special Tax for each Assessor’s Parcel of Residential Property in such Final Map, or the portion thereof that is changed or modified, shall be a rate per Acre calculated as follows:
1. Determine the total Backup Special Taxes anticipated to apply to the changed or modified portion of the Final Map prior to the change or modification.
2. Divide the amount determined pursuant to paragraph 1 above by the total Acreage of Residential Property excluding Non-Residential Property, Taxable Public Property, and Taxable Property Owner Association Property which is ultimately expected to exist in such changed or modified Final Map area, as reasonably determined by the CFD Administrator.
3. The result is the Backup Special Tax per Acre which shall be applicable to all Assessor's Parcels of Residential Property in such changed or modified Final Map.
C.2 Final Mapped Property
The Maximum Special Tax for each Assessor’s Parcel of Final Mapped Property expected to be classified as Residential Property shall be the Backup Special Tax computed pursuant to Section C.1.b above.
C.3 Undeveloped Property, Taxable Property Owner Association Property, Attachment 2
7 Rate and Method of Apportionment
CFD No. 2022-1N (IA No. 4) (Olsen/South Chandler Ranch - Facilities) and/or Taxable Public Property.
The Maximum Special Tax for each Assessor’s Parcel of Undeveloped Property, Taxable Property Owner Association Property, or Taxable Public Property shall be $90,143 per Acre.
C.4 Multiple Land Use Classes
In some instances, an Assessor’s Parcel of Developed Property may contain more than one Land Use Class. The annual Maximum Special Taxes levied on an Assessor’s Parcel shall be the sum of the Maximum Special Taxes for all Land Use Classes located on that Assessor’s Parcel. If an Assessor’s Parcel of Developed Property includes Non-Residential Property, the Acreage to be assigned to such property for purposes of establishing the Special Tax shall be an amount proportional to the Total Floor Area associated with Non-Residential Property, as applicable. Furthermore, for a condominium plan, if only a portion of its Building Permits have been issued, the remaining portion of the condominium plan shall be considered Final Mapped Property. The CFD Administrator’s allocation to each type of property shall be final.
D APPORTIONMENT OF THE SPECIAL TAX
Commencing with Fiscal Year 2023-2024 and for each following Fiscal Year, the Council shall determine the Special Tax Requirement and shall levy the Special Tax until the total Special Tax levy equals the Special Tax Requirement. The Special Tax shall be levied each Fiscal Year as follows:
First: The Special Tax shall be levied Proportionately on each Assessor’s Parcel of Developed Property up to 100% of the applicable Assigned Special Tax to satisfy the Special Tax Requirement.
Second: If additional monies are needed to satisfy the Special Tax Requirement after the first step has been completed, the Special Tax shall be levied Proportionately on each Assessor’s Parcel of Final Mapped 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.
Third: If additional moneys are needed to satisfy the Special Tax Requirement after the first two steps have been completed, the Special Tax shall be levied Proportionately on each Assessor’s Parcel of Undeveloped Property up to 100% of the Maximum Special Tax applicable to each such Assessor’s Parcel as needed to satisfy the Special Tax Requirement.
Fourth: If additional moneys are needed to satisfy the Special Tax Requirement after the first three steps have been completed, the Special Tax on each Assessor's Parcel of Developed Property whose Maximum Special Tax is the Backup Special Tax shall be increased Proportionately from the Assigned Special Tax up to 100% of the Maximum Special Tax as needed to satisfy the Special Tax Requirement.
Fifth: If additional moneys are needed to satisfy the Special Tax Requirement after the first four steps have been completed, the Special Tax shall be levied Proportionately on each Assessor’s Parcel of Taxable Property Owner Association Property up to 100% of the Maximum Special Tax applicable to each such Assessor’s Attachment 2
8 Rate and Method of Apportionment
CFD No. 2022-1N (IA No. 4) (Olsen/South Chandler Ranch - Facilities) Parcel as needed to satisfy the Special Tax Requirement.
Sixth: If additional moneys are needed to satisfy the Special Tax Requirement after the first five steps have been completed, the Special Tax shall be levied Proportionately on each Assessor’s Parcel of Taxable Public 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 10% above the amount that would have been levied in that Fiscal Year had there never been any such delinquency or default.
E EXEMPTIONS
No Special Tax shall be levied on Property Owner Association Property or Public Property in CFD No. 2022-1N (IA No. 4), provided that an Assessor’s Parcel shall not be exempt and shall be classified as Taxable Property Owner Association Property and Taxable Public Property if exempting such property would reduce the sum of all Taxable Property to less than 6.85 Acres. Tax-exempt status will be assigned by the CFD Administrator in the chronological order in which such Assessor’s Parcels or portions thereof in CFD No. 2022- 1N (IA No. 4) become Public Property or Property Owner Association Property. However, should an Assessor’s Parcel no longer be classified as Public Property or Property Owner Association Property, it will, from that point forward, be subject to the Special Tax.
Property Owner Association Property or Public Property that is not exempt from the Special Tax under this section shall be subject to the levy of the Special Tax and shall be taxed Proportionately as part of the fifth step and sixth step in Section D above, respectively, at up to 100% of the applicable Maximum Special Tax for Taxable Property Owner Association Property or Taxable Public Property.
In addition, no Special Tax shall be levied on any Assessor’s Parcel in any Fiscal Year in which such Assessor’s Parcel is classified as Exempt Welfare Exemption Property.
F APPEALS AND INTERPRETATIONS
Any taxpayer may file a written appeal of the Special Tax on his/her property with the CFD Administrator, provided that the appellant is current in his/her payments of Special Taxes.
During the pendency of an appeal, all Special Taxes previously levied must be paid on or before the payment date established when the levy was made. The appeal must specify the reasons why the appellant claims the Special Tax is in error. The CFD Administrator shall review the appeal, meet with the appellant if the CFD Administrator deems necessary, and advise the appellant of its determination. If the CFD Administrator agrees with the appellant, the CFD Administrator shall eliminate or reduce the Special Tax on the appellant’s property.
If the CFD Administrator disagrees with the appellant and the appellant is dissatisfied with the determination, the appellant then has 30 days in which to appeal to the Council by filing a written notice of appeal with the clerk of the Council, provided that the appellant is current in his/her payments of Special Taxes. The second appeal must specify the reasons for the disagreement with the CFD Administrator’s determination.
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.
Attachment 2
9 Rate and Method of Apportionment
CFD No. 2022-1N (IA No. 4) (Olsen/South Chandler Ranch - Facilities)
G PREPAYMENT
The following additional definitions apply to this Section G:
“CFD Public Facilities” means $7,052,484 or such lower amount (i) authorized by the Council to provide the public facilities to be funded under CFD No. 2022-1N (IA No. 4), or (ii) determined by the Council concurrently with a covenant that it will not issue any more Bonds to be supported by the Special Tax levied under this Rate and Method of Apportionment.
“Construction Fund” means a fund held by the Trustee to fund CFD Public Facilities. “Future Facilities Cost” means the CFD Public Facilities minus public facility costs previously funded, or that can be funded from funds in the Construction Fund. “Outstanding Bonds” means all previously issued Bonds secured by the levy of the 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 the Special Tax.
G.1 Prepayment in Full
The Maximum Special Tax obligation may be prepaid and permanently satisfied for (i) Assessor’s Parcels of Developed Property, (ii) Assessor’s Parcels of Final Mapped Property or Undeveloped Property for which a Building Permit has been issued, (iii) Assessor’s Parcels of Final Mapped Property or Undeveloped Property for which a Building Permit has not been issued; and (iv) Assessor’s Parcels of Public Property or Property Owner’s Association Property that are not exempt pursuant to Section E.
The Maximum 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 Maximum 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 CFD No. 2022-1N (IA No. 4) 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 Prepayment Amount.
The Prepayment Amount shall be calculated as follows (capitalized terms are defined below):
Prepayment Amount
Bond Redemption Amount
plus Redemption Premium
plus Future Facilities Amount
plus Defeasance Amount
Attachment 2
10 Rate and Method of Apportionment
CFD No. 2022-1N (IA No. 4) (Olsen/South Chandler Ranch - Facilities) plus Administrative Fees and Expenses
less Reserve Fund Credit
less Capitalized Interest Credit
Total: equals Special Tax 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 Final Mapped 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 Final Mapped Property or Undeveloped Property for which a Building Permit has not been issued, Public Property or Property Owner’s Association Property to be prepaid, 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 Special Taxes that could be levied at the Maximum Special Tax at 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 Cost.
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, which amount shall not be less than $0 (the “Future Facilities Amount”).
8. Determine the amount needed to pay interest on the Bond Redemption Amount from the first bond interest payment date following the current Fiscal Year until the earliest redemption date for the Outstanding Bonds on which Bonds can be redeemed from the Prepayment Amount.
9. Determine the Special Tax levied on the Assessor’s Parcel in the current Fiscal Year which has 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 Attachment 2
11 Rate and Method of Apportionment
CFD No. 2022-1N (IA No. 4) (Olsen/South Chandler Ranch - Facilities) 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 CFD No. 2022-1N (IA No. 4), including the cost of computation of the Prepayment Amount, 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 Maximum 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 Amount, 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 Amount from the balance in the reserve fund on the prepayment date, but in no event shall such amount be less than zero.
14. If any capitalized interest for the Outstanding Bonds will not have been expended at the time of the first interest payment following the current Fiscal Year, the capitalized interest credit (the “Capitalized Interest Credit”) shall be calculated by multiplying the quotient derived pursuant to paragraph 3 by the expected balance in the capitalized interest account after such first interest payment.
15. 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, less the Capitalized Interest Credit.
16. 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 CFD No. 2022-1N (IA No. 4).
The Prepayment Amount may not be sufficient to redeem an aggregate principal amount of Outstanding Bonds which is equally divisible by $5,000. 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 Maximum Special Tax obligation is prepaid, the Council shall cause a suitable notice to be recorded in compliance with the Act, to indicate the prepayment of Maximum Special Tax obligation and the Attachment 2
12 Rate and Method of Apportionment
CFD No. 2022-1N (IA No. 4) (Olsen/South Chandler Ranch - Facilities) release of the Special Tax lien for the Assessor’s Parcel, and the obligation to pay the Special Tax for such Assessor’s Parcel shall cease.
Notwithstanding the foregoing, no Special Tax prepayment shall be allowed unless the amount of Maximum Special Tax that may be levied on all Assessor’s Parcels of Taxable Property after the proposed prepayment will be at least 1.1 times maximum annual debt service on the Bonds that will remain outstanding after the prepayment plus the estimated annual Administrative Expenses.
G.2 Prepayment in Part
The Maximum Special Tax obligation for (i) Assessor’s Parcels of Developed Property, (ii) Assessor’s Parcels of Final Mapped Property or Undeveloped Property for which a Building Permit has been issued, (iii) Assessor’s Parcels of Final Mapped Property or Undeveloped Property for which a Building Permit has not been issued; and (iv) Assessor’s Parcels of Public Property or Property Owner’s Association Property that are not exempt pursuant to Section E, 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 = The partial prepayment;
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; and
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 Maximum Special Tax obligation for the Assessor’s Parcel shall notify the CFD Administrator of (i) such owner’s intent to partially prepay the Maximum Special Tax obligation, (ii) the percentage of the Maximum 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 CFD No. 2022-1N (IA No. 4) in calculating the amount of a partial prepayment. 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 for the Assessor’s Parcel. A Partial Prepayment 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 Maximum Special Tax obligation is partially prepaid, the CFD Administrator shall (i) distribute the Partial Prepayment Amount as provided in Paragraph 16 of Section G.1, and (ii) indicate in the records of CFD No. 2022-1N (IA No. 4) 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 Special Tax obligation will continue on the Assessor’s Parcel pursuant to Section D.
Attachment 2
13 Rate and Method of Apportionment
CFD No. 2022-1N (IA No. 4) (Olsen/South Chandler Ranch - Facilities)
H SPECIAL TAX REDUCTION
The following definitions apply to this Section H:
"Base Price" means, with respect to the Dwelling Units in each Plan Type, as of the date of the applicable Price Point Study, the base price of such Dwelling Units, estimated by the Price Point Consultant as of such date, based upon their actual or expected characteristics, such as living area, view, or lot size, but excluding potential appreciation or premiums, options or upgrades.
"Plan Type" means a discrete residential plan type generally consisting of residential Dwelling Units that share a common product type (e.g., detached, attached) and that have nearly identical amounts of living area, that is constructed or expected to be constructed within CFD No. 2022-1N (IA No. 4) as identified in the Price Point Study. "Price Point Consultant" means any consultant or firm of such consultants selected by CFD No. 2022-1N (IA No. 4) that (a) has substantial experience in performing price point studies or otherwise estimating or confirming pricing for Dwelling Units within community facilities districts, (b) is well versed in analyzing economic and real estate data that relates to the pricing of Dwelling Units in community facilities districts, (c) is independent and not under the control of CFD No. 2022-1N (IA No. 4), the City, or the developer, (d) does not have any substantial interest, direct or indirect, with or in CFD No. 2022-1N (IA No. 4), the City, any owner of real property in CFD No. 2022- 1N (IA No. 4), or any real property in CFD No. 2022-1N (IA No. 4), and (e) is not connected with CFD No. 2022-1N (IA No. 4) or the City as an officer or employee thereof, but who may be regularly retained to make reports to CFD No. 2022-1N (IA No. 4) or the County.
"Price Point Study" means a price point study or a letter updating a previous price point study, which (a) has been prepared by the Price Point Consultant, (b) sets forth the Plan Types constructed or expected to be constructed within CFD No. 2022-1N (IA No. 4), (c) sets forth the estimated number of constructed and expected Dwelling Units for each Plan Type, (d) sets forth estimates of the Base Price for each Plan Type and (e) uses a date for establishing such Base Prices that is no earlier than 30 days prior to the date the Price Point Study is delivered to the CFD Administrator pursuant to Section H herein.
"Total Effective Tax Rate" means, for a Plan Type, (a) the Total Tax Burden for such Plan Type divided by (b) the Base Price for such Plan Type, converted to a percentage. "Total Effective Tax Rate Limit" means, 1.90%.
"Total Tax Burden” means, with respect to a Plan Type, for the Fiscal Year for which the calculation is being performed, the sum of the Assigned Special Tax and estimated ad valorem property taxes, special assessments, special taxes for any overlapping community facilities districts, and any other governmental taxes, fees and charges levied or imposed on Dwelling Units of such Plan Type in CFD No. 2022- 1N (IA No. 4) in such Fiscal Year or that would have been levied on all such Dwelling Units had these Dwelling Units been subject to such levies (excluding homeowner’s association dues and Property Assessed Clean Energy (“PACE”) charges imposed pursuant to AB 811 or SB 555, that are levied on individual Assessor’s Parcels, or any other charges applicable to the Assessor’s Parcels initiated by the homeowner after the close of escrow).
Attachment 2
14 Rate and Method of Apportionment
CFD No. 2022-1N (IA No. 4) (Olsen/South Chandler Ranch - Facilities) Prior to the issuance of a second series of Bonds (or the first series of Bonds, if such series is the final series of Bonds, as determined by the City), the following steps shall be taken for each Land Use Class of for-sale Residential Property in CFD No. 2022- 1N (IA No. 4) for evaluating the Special Tax:
Step No.:
1. At least 30 days prior to the issuance of Bonds, a Price Point Study shall be completed and delivered to the CFD Administrator.
2. The CFD Administrator shall determine the Total Tax Burden and Total Effective Tax Rate for each Plan Type in CFD No. 2022-1N (IA No. 4).
3. Separately, for each Land Use Class of for-sale Residential Property in CFD No. 2022-1N (IA No. 4), the CFD Administrator shall determine whether or not the Total Effective Tax Rate for all Plan Types in a Land Use Class is less than or equal to the Total Effective Tax Rate Limit.
a. If the Total Effective Tax Rate for all Plan Types in a Land Use Class in CFD No. 2022-1N (IA No. 4) is less than or equal to the Total Effective Tax Rate Limit, then there shall be no reduction in Special Tax for such Land Use Class in CFD No. 2022-1N (IA No. 4).
b. If the Total Effective Tax Rate for any Plan Type in a Land Use Class in CFD No. 2022-1N (IA No. 4) is greater than the Total Effective Tax Rate Limit , the CFD Administrator shall calculate a revised Assigned Special Tax for that Land Use Class in CFD No. 2022-1N (IA No. 4), such that the revised Assigned Special Tax does not cause the Total Effective Tax Rate for any Plan Type in such Land Use Class to exceed the Total Effective Tax Rate Limit.
4. If the Assigned Special Tax for any Land Use Class is revised pursuant to step
3.b. above, the CFD Administrator shall also prepare and execute a Certificate to Amend the Special Tax substantially in the form of Exhibit “A” hereto and shall deliver such Certificate to Amend the Special Tax to CFD No. 2022-1N (IA No. 4). The Certificate to Amend the Special Tax shall be completed for all Land Use Classes and shall set forth, as applicable, either (i) the reduced Assigned Special Tax for a Land Use Class as calculated pursuant to step 3.b., or (ii) the Assigned Special Tax as identified in Table 1 of Section C for a Land Use Class that was not revised as determined pursuant to step 3.a. A reduction to the Assigned Special Tax in one Land Use Class shall not require a reduction in any other Land Use Class.
5. If the anticipated date of issuance of Bonds is within 180 days of the date of receipt of the Price Point Study by the CFD Administrator, CFD No. 2022-1N (IA No. 4) shall execute the acknowledgement on such Certificate to Amend the Special Tax dated as of the closing date of such Bonds, and upon the closing of such Bonds, the Assigned Special Tax for each Land Use Class shall be as set forth in such Certificate to Amend the Special Tax. If the date of issuance of Bonds is not within 180 days of the date of receipt of the Price Point Study by the CFD Administrator, such Certificate to Amend the Special Tax shall not be acknowledged by CFD No. 2022-1N (IA No. 4) and shall, as of such date, be void and of no further force and effect. In such case, if subsequently Bonds are expected to be issued, at least 30 days prior to that Attachment 2
15 Rate and Method of Apportionment
CFD No. 2022-1N (IA No. 4) (Olsen/South Chandler Ranch - Facilities) expected date, steps 1 through 5 of this section shall be performed based on a new Price Point Study.
6. After the execution by CFD No. 2022-1N (IA No. 4) of the acknowledgement on the Certificate to Amend the Special Tax, CFD No. 2022-1N (IA No. 4) shall cause to be recorded in the records of the County Recorder an Amended Notice of Special Tax Lien for CFD No. 2022-1N (IA No. 4) reflecting the Assigned Special Tax for CFD No. 2022-1N (IA No. 4) set forth in such Certificate to Amend the Special Tax.
7. If the Assigned Special Tax is not required to be changed for any Land Use Class based on the calculations performed under step 3 above, there shall be no reduction in the Assigned Special Tax and no Certificate to Amend the Special Tax shall be required.
I MANNER OF COLLECTION
The Special Tax will be collected in the same manner and at the same time as ordinary ad valorem property taxes; provided, however, that CFD No. 2022-1N (IA No. 4) may directly bill the Special Tax, may collect the Special Tax at a different time or in a different manner if necessary to meet its financial obligations, and may covenant to foreclose and may actually foreclose on delinquent Assessor’s Parcels as permitted by the Act.
J TERM OF SPECIAL TAX
The Special Taxes shall be levied until the final series of Bonds have matured, provided that the Special Taxes shall not be levied after Fiscal Year 2072-2073. The Special Taxes will cease to be levied in an earlier Fiscal Year if the CFD Administrator has determined that all required interest and principal payments on the Bonds have been paid, no delinquent Special Taxes remain uncollected, and the City has covenanted that it will not issue any more Bonds (other than refunding Bonds) to be supported by Special Taxes levied under this Rate and Method of Apportionment as described in Section D.
Attachment 2
A-1 Rate and Method of Apportionment
CFD No. 2022-1N (IA No. 4) (Olsen/South Chandler Ranch - Facilities)
EXHIBIT A
CERTIFICATE TO AMEND THE SPECIAL TAX
IMPROVEMENT AREA NO. 4
OF THE CITY OF PASO ROBLES
COMMUNITY FACILITIES DISTRICT NO. 2022-1N (OLSEN/SOUTH
CHANDLER RANCH - FACILITIES)
TAX REDUCTION CERTIFICATE
1. Pursuant to Section H of the Rate and Method of Apportionment, as attached to the Notice of Special Tax Lien, recorded in the Official Records of the County of San Luis Obispo as Instrument No. XXXXXX on MM/DD/YYYY, the City of Paso Robles (the “City”) hereby reduces the Assigned Special Taxes for Developed Property within CFD No. 2022- 1N (IA No. 4) set forth in Table 1 of the Rate and Method of Apportionment for CFD No. 2022-1N (IA No. 4).
2. The calculations made pursuant to Section H were based upon a Price Point Study that was received by the CFD Administrator on _________________.
3. The information in Table 1, relating to the Assigned Special Tax for Developed Property within CFD No. 2022-1N (IA No. 4) shall be amended and restated in full as follows:
Attachment 2
A-2 Rate and Method of Apportionment
CFD No. 2022-1N (IA No. 4) (Olsen/South Chandler Ranch - Facilities) Table A-1: Assigned Special Tax for Developed Property
Land Use
Class Residential Floor Area Assigned Special Tax
1 RESIDENTIAL PROPERTY (>= 2,100 SF) [$ ] PER DWELLING UNIT 2 RESIDENTIAL PROPERTY (1,900 - 2,099 SF) [$ ] PER DWELLING UNIT 3 RESIDENTIAL PROPERTY (< 1,900 SF) [$ ] PER DWELLING UNIT 4 NON-RESIDENTIAL PROPERTY $90,143 PER ACRE
4. Upon execution of the certificate by the City and CFD No. 2022-1N (IA No. 4), the City shall cause an amended Notice of Special Tax Lien for CFD No. 2022-1N (IA No. 4) to be recorded reflecting the modifications set forth herein.
Submitted:
CFD ADMINISTRATOR
By: Date:
By execution hereof, the undersigned acknowledges, on behalf of CFD No. 2022-1N (IA No. 4), receipt of this certificate and modification of the Rate and Method of Apportionment as set forth in this certificate.
Improvement Area No. 4 of Community Facilities District No. 2022-1N (Olsen/South Chandler Ranch - Facilities) of the City of Paso Robles.
By: Date as of:
Attachment 2
APPENDIX A-5
City of Paso Robles
Community Facilities District Report
Community Facilities District No. 2022-1N
RATE AND METHOD OF
APPORTIONMENT -
IMPROVEMENT AREA
NO. 5
Attachment 2
1 Amended and Restated Rate and Method of Apportionment CFD No. 2022-1N (IA No. 5) (Olsen/South Chandler Ranch - Facilities)
AMENDED AND RESTATED RATE AND METHOD OF
APPORTIONMENT OF SPECIAL TAXES
IMPROVEMENT AREA NO. 5 OF
CITY OF PASO ROBLES
COMMUNITY FACILITIES DISTRICT NO. 2022-1N
(OLSEN/SOUTH CHANDLER RANCH - FACILITIES)
A Special Tax as hereinafter defined shall be levied on all Assessor’s Parcels in Improvement Area No. 5 ("IA No. 5”) of City of Paso Robles Community Facilities District No. 2022-1N (Olsen/South Chandler Ranch - Facilities) ("CFD No. 2022-1N (IA No. 5)") and collected each Fiscal Year commencing in Fiscal Year 2024-2025, in an amount determined by the Council, through the application of this Rate and Method of Apportionment as described below. All of the real property in CFD No. 2022-1N (IA No. 5), unless exempted by law or by the provisions hereof, 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:
"Acre" or "Acreage" means the land area of an Assessor’s Parcel as shown on an Assessor’s Parcel Map, or if the land area is not shown on an Assessor’s Parcel Map, the land area shown on the applicable Final Map, parcel map, condominium plan, or other recorded County parcel map.
"Act" means 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.
"Administrative Expenses" means the following actual or reasonably estimated costs directly related to the administration of CFD No. 2022-1N (IA No. 5): 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 of collecting the Special Taxes (whether by the City or otherwise); the costs of remitting the Special Taxes to the Trustee; the costs of the Trustee (including its legal counsel) in the discharge of the duties required of it under the Indenture; the costs to the City, CFD No. 2022-1N (IA No. 5) or any designee thereof of complying with arbitrage rebate requirements; the costs to the City, CFD No. 2022-1N (IA No. 5) or any designee thereof of complying with City, CFD No. 2022-1N (IA No. 5), major property owner, or obligated persons disclosure requirements associated with applicable federal and state securities laws and of the Act; the costs associated with preparing Special Tax disclosure statements and responding to public inquiries regarding the Special Taxes; the costs of the City, CFD No. 2022-1N (IA No. 5), 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. Administrative Expenses shall also include amounts estimated or advanced by the City or CFD No. 2022-1N (IA No. 5) for any other administrative purposes of CFD No. 2022-1N (IA No. 5), including attorney’s fees and other costs related to commencing and pursuing to completion any foreclosure, or otherwise addressing the disposition of delinquent Special Taxes.
Attachment 2
2 Amended and Restated Rate and Method of Apportionment CFD No. 2022-1N (IA No. 5) (Olsen/South Chandler Ranch - Facilities) "Assessor’s Parcel" means any real property to which an Assessor’s Parcel Number is assigned as shown on an Assessor’s Parcel Map.
"Assessor’s Parcel Map" means an official map of the County 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 for each Land Use Class of Developed Property, as determined in accordance with Section C below. “Authorized Facilities” means the facilities authorized to be financed by CFD No. 2022-1N.
"Backup Special Tax" means the Special Tax of that name described in Section C below.
"Bonds" means any bonds or other debt as defined in Section 53317(d) of the Act, whether in one or more series, issued by CFD No. 2022-1N for IA No. 5 under the Act. "Boundary Map" means a recorded map which indicates the boundaries of CFD No. 2022-1N (IA No. 5).
"Building Permit" means the first legal document issued by the City giving official permission for the construction of a building on an Assessor’s Parcel. For purposes of this definition and application of the Special Tax, “Building Permit” may or may not include any subsequent building permits issued or changed after the first issuance, as determined by the CFD Administrator.
"Calendar Year" means the period commencing January 1 of any year and ending the following December 31.
"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.
"CFD No. 2022-1N" means the City of Paso Robles Community Facilities District No. 2022-1N (Olsen/South Chandler Ranch – Facilities).
“City” means the City of Paso Robles.
"Council" means the City Council.
"County" means the County of San Luis Obispo.
"Developed Property" means, for each Fiscal Year, all Taxable Property located within a Final Map that was recorded as of January 1 of the prior Fiscal Year, for which a Building Permit was issued prior to May 1 of the prior Fiscal Year. “Dwelling Unit” means one residential unit of any configuration, including, but not limited to, a single-family attached or detached dwelling, condominium, mobile home, or otherwise, excluding hotels and motels. A casita or accessory dwelling unit (“ADU”) of any configuration shall not be counted as a separate Dwelling Unit for purposes of this Rate and Method of Apportionment.
“Exempt Welfare Exemption Property” means, for each Fiscal Year, an Assessor’s Parcel that, prior to the issuance of Bonds, received a welfare exemption under subdivision (g) of Section 214 of the California Revenue and Taxation Code (or any Attachment 2
3 Amended and Restated Rate and Method of Apportionment CFD No. 2022-1N (IA No. 5) (Olsen/South Chandler Ranch - Facilities) successor statute), as indicated in the County’s assessor’s roll finalized as of January 1 of the previous Fiscal Year, and is exempt from the Special Tax pursuant to Section 53340(c) of the Act.
"Final Map" means (i) a final map, or portion thereof, approved by the County pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) that creates individual lots or parcels for which Building Permits may be issued without further subdivision, or (ii) for condominiums, a final map approved by the County and a condominium plan recorded pursuant to California Civil Code Section 4285 creating such individual lots or parcels.
"Final Mapped Property" means all Assessor’s Parcels of Taxable Property: (i) that are included in a Final Map 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 has not been issued on or before May 1 preceding the Fiscal Year in which the Special Tax is being levied.
"Fiscal Year" means the period starting July 1 and ending on the following June 30. "Improvement Area No. 5” or "IA No. 5” means Improvement Area No. 5 of CFD No. 2022-1N.
"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.
"Land Use Class" means any of the categories listed in Table 1 herein. "Maximum Special Tax" means the maximum Special Tax, determined in accordance with Section C below, that can be levied in any Fiscal Year on any Assessor’s Parcel within CFD No. 2022-1N (IA No. 5).
“Non-Residential Floor Area” means the total building square footage of the nonresidential building(s) located on an Assessor’s Parcel, measured from outside wall to outside wall, not including space devoted to stairwells, public restrooms, lighted courts, vehicle parking and areas incident thereto, and mechanical equipment incidental to the operation of such building. The determination of Non-Residential Floor Area shall be made by reference to the Building Permit(s) issued for such Assessor’s Parcel and/or to the appropriate records kept by the City, as reasonably determined by the CFD Administrator.
"Non-Residential Property" means all Assessor's Parcels of Taxable 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.
"Outstanding Bonds" means all Bonds which are deemed to be outstanding under the Indenture.
"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. “Property Owner’s Association” means, collectively, any property owner association Attachment 2
4 Amended and Restated Rate and Method of Apportionment CFD No. 2022-1N (IA No. 5) (Olsen/South Chandler Ranch - Facilities) or homeowners association, including any master or sub-association, created for CFD No. 2022-1N (IA No. 5).
"Property Owner Association Property" means, for each Fiscal Year, any property within the boundaries of CFD No. 2022-1N (IA No. 5) that was owned by a Property Owner Association, as of January 1 of the prior Fiscal Year. "Proportionately" means, for Developed Property, that the ratio of the actual Special Tax levy to the Assigned Special Tax is equal for all Assessor’s Parcels of Developed Property. For Undeveloped Property, "Proportionately" means that the ratio of the actual Special Tax levy per Acre to the Maximum Special Tax per Acre is equal for all Assessor’s Parcels of Undeveloped Property. For Taxable Property Owner Association Property, "Proportionately" means that the ratio of the actual Special Tax levy per Acre to the Maximum Special Tax per Acre is equal for all Assessor’s Parcels of Taxable Property Owner Association Property. For Taxable Public Property, "Proportionately" means that the ratio of the actual Special Tax levy per Acre to the Maximum Special Tax per Acre is equal for all Assessor’s Parcels of Taxable Public Property.
"Public Property" means, for each Fiscal Year, any property within CFD No. 2022-1N (IA No. 5) that is owned by, irrevocably offered for dedication to, or dedicated to the federal government, the State, the City, or any other public agency as of June 30 of the prior Fiscal Year; provided however that any property leased by a public agency to a private entity and subject to taxation under Section 53340.1 of the Act shall be taxed and classified in accordance with its use. To ensure that property is classified as Public Property in the first Fiscal Year after it is acquired by, irrevocably offered for dedication to, or dedicated to a public agency, the property owner shall notify the CFD Administrator in writing of such acquisition, offer, or dedication not later than June 30 of the Fiscal Year in which the acquisition, offer, or dedication occurred. “Rate and Method of Apportionment” means this Amended and Restated Rate and Method of Apportionment of Special Taxes, City of Paso Robles, Community Facilities District No. 2022-1N (Olsen/South Chandler Ranch - Facilities). "Residential Floor Area" means all of the square footage of living area within the perimeter of a Dwelling Unit, not including any carport, walkway, garage, overhang, patio, enclosed patio, or similar area. The CFD Administrator shall determine the Residential Floor Area based upon the Building Permit(s) issued for such Dwelling Unit.
"Residential Property" means Developed Property, for which a Building Permit has been issued for purposes of constructing one or more Dwelling Units. "Special Tax" means a special tax levied in any Fiscal Year to pay the Special Tax Requirement.
“Special Tax Requirement” means that amount required in any Fiscal Year to: (i) pay debt service on all Outstanding Bonds; (ii) pay periodic costs on the Bonds, including but not limited to, credit enhancement and rebate payments on the Bonds; (iii) pay Administrative Expenses; (iv) pay any amounts required to establish or replenish any reserve funds for all Outstanding Bonds to the extent such establishment or replenishment has not been included in a computation of the Special Tax Requirement in a previous Fiscal Year; (v) pay directly for the acquisition or construction of Authorized Facilities to the extent that inclusion of such amount Attachment 2
5 Amended and Restated Rate and Method of Apportionment CFD No. 2022-1N (IA No. 5) (Olsen/South Chandler Ranch - Facilities) does not increase the Special Tax levy on Final Mapped Property or Undeveloped Property; and (vi) pay for reasonably anticipated Special Tax delinquencies based on the historical delinquency rate for CFD No. 2022-1N (IA No. 5) as determined by the CFD Administrator; less (vii) a credit for funds available to reduce the annual Special Tax levy, as determined by the CFD Administrator pursuant to the Indenture. "State" means the State of California.
"Taxable Property" means all of the Assessor’s Parcels within the boundaries of CFD No. 2022-1N (IA No. 5) which are not exempt from the Special Tax pursuant to law or Section E below.
"Taxable Property Owner Association Property" means all Assessor’s Parcels of Property Owner Association Property that are not exempt pursuant to Section E below.
"Taxable Public Property" means all Assessor’s Parcels of Public Property that are not exempt pursuant to Section E below.
“Total Floor Area” means the sum of the Residential Floor Area and the NonResidential Floor Area located on an Assessor’s Parcel. "Trustee" means the trustee or fiscal agent under the Indenture. "Undeveloped Property” means all Assessor’s Parcels of Taxable Property which are not Developed Property, Final Mapped Property, Public Property, or Property Owner’s Association Property.
B ASSIGNMENT TO LAND USE CLASSES
Each Fiscal Year, beginning with Fiscal Year 2024-2025, each Assessor’s Parcel of Taxable Property shall be classified as Developed Property, Final Mapped Property, Undeveloped Property, Public Property and/or Property Owner’s Association Property.
Assessor’s Parcels of Developed Property shall further be classified as Residential Property or Non-Residential Property. Each Assessor’s Parcel of Residential Property shall be further categorized into Land Use Classes based on its Residential Floor Area and assigned the appropriate Assigned Special Tax.
The determination of the Residential Floor Area shall be made by reference to the original Building Permit issued for the Dwelling Unit of an Assessor’s Parcel. The Building Permit may include any subsequent document(s) authorizing new construction on an Assessor’s Parcel that are issued or changed by the City after the original issuance, as determined by the CFD Administrator as necessary to fairly allocate Special Tax to the Assessor’s Parcel, provided that following such determination the Maximum Special Tax that may be levied on all Assessor’s Parcels of Taxable Property in each year will be at least 1.1 times annual debt service on all outstanding Bonds plus the estimated annual Administrative Expenses in each year.
C MAXIMUM SPECIAL TAX RATE
C.1 Developed Property
The Maximum Special Tax for each Assessor’s Parcel classified as Developed Property shall be the greater of (i) the amount derived by application of the Assigned Special Tax or (ii) the amount derived by application of the Backup Special Tax.
Attachment 2
6 Amended and Restated Rate and Method of Apportionment CFD No. 2022-1N (IA No. 5) (Olsen/South Chandler Ranch - Facilities) Assigned Special Tax
Each Fiscal Year, each Assessor’s Parcel of Residential Property or Non-Residential Property shall be subject to an Assigned Special Tax. The Assigned Special Tax 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
Land Use
Class Description Assigned Special Tax
1 RESIDENTIAL PROPERTY (>= 2,900 SF) $9,465 PER DWELLING UNIT 2 RESIDENTIAL PROPERTY (2,700 - 2,899 SF) $8,834 PER DWELLING UNIT 3 RESIDENTIAL PROPERTY (2,500 - 2,699 SF) $7,534 PER DWELLING UNIT 4 RESIDENTIAL PROPERTY (2,300 - 2,499 SF) $6,824 PER DWELLING UNIT 5 RESIDENTIAL PROPERTY (2,100 - 2,299 SF) $6,659 PER DWELLING UNIT 6 RESIDENTIAL PROPERTY (1,900 - 2,099 SF) $5,839 PER DWELLING UNIT 7 RESIDENTIAL PROPERTY (1,700 - 1,899 SF) $5,713 PER DWELLING UNIT 8 RESIDENTIAL PROPERTY (< 1,700 SF) $5,437 PER DWELLING UNIT 9 NON-RESIDENTIAL PROPERTY $44,176 PER ACRE
Backup Special Tax
The Backup Special Tax for each Assessor’s Parcel of Residential Property in a Final Map shall be computed by multiplying the Acreage of all Taxable Property (excluding Acreage associated with current or expected Non-Residential Property, Taxable Public Property, or Taxable Property Owner Association Property, if any) in such Final Map by $44,176, and dividing the product by the number of such Assessor’s Parcels (i.e., the number of residential lots) in such Final Map.
Notwithstanding the foregoing, if all or any portion of a Final Map is subsequently changed or modified, then the Backup Special Tax for each Assessor’s Parcel of Residential Property in such Final Map, or the portion thereof that is changed or modified, shall be a rate per Acre calculated as follows:
1. Determine the total Backup Special Taxes anticipated to apply to the changed or modified portion of the Final Map prior to the change or modification.
2. Divide the amount determined pursuant to paragraph 1 above by the total Acreage of Residential Property excluding Non-Residential Property, Taxable Public Property, and Taxable Property Owner Association Property which is ultimately expected to exist in such changed or modified Final Map area, as reasonably determined by the CFD Administrator.
3. The result is the Backup Special Tax per Acre which shall be applicable to all Assessor's Parcels of Residential Property in such changed or modified Final Map.
C.2 Final Mapped Property
The Maximum Special Tax for each Assessor’s Parcel of Final Mapped Property Attachment 2
7 Amended and Restated Rate and Method of Apportionment CFD No. 2022-1N (IA No. 5) (Olsen/South Chandler Ranch - Facilities) expected to be classified as Residential Property shall be the Backup Special Tax computed pursuant to Section C.1.b above.
C.3 Undeveloped Property, Taxable Property Owner Association Property, and/or Taxable Public Property.
The Maximum Special Tax for each Assessor’s Parcel of Undeveloped Property, Taxable Property Owner Association Property, or Taxable Public Property shall be $44,176 per Acre.
C.4 Multiple Land Use Classes
In some instances, an Assessor’s Parcel of Developed Property may contain more than one Land Use Class. The annual Maximum Special Taxes levied on an Assessor’s Parcel shall be the sum of the Maximum Special Taxes for all Land Use Classes located on that Assessor’s Parcel. If an Assessor’s Parcel of Developed Property includes Non-Residential Property, the Acreage to be assigned to such property for purposes of establishing the Special Tax shall be an amount proportional to the Total Floor Area associated with Non-Residential Property, as applicable. Furthermore, for a condominium plan, if only a portion of its Building Permits have been issued, the remaining portion of the condominium plan shall be considered Final Mapped Property. The CFD Administrator’s allocation to each type of property shall be final.
D APPORTIONMENT OF THE SPECIAL TAX
Commencing with Fiscal Year 2024-2025 and for each following Fiscal Year, the Council shall determine the Special Tax Requirement and shall levy the Special Tax until the total Special Tax levy equals the Special Tax Requirement. The Special Tax shall be levied each Fiscal Year as follows:
First: The Special Tax shall be levied Proportionately on each Assessor’s Parcel of Developed Property up to 100% of the applicable Assigned Special Tax to satisfy the Special Tax Requirement.
Second: If additional monies are needed to satisfy the Special Tax Requirement after the first step has been completed, the Special Tax shall be levied Proportionately on each Assessor’s Parcel of Final Mapped 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.
Third: If additional moneys are needed to satisfy the Special Tax Requirement after the first two steps have been completed, the Special Tax shall be levied Proportionately on each Assessor’s Parcel of Undeveloped Property up to 100% of the Maximum Special Tax applicable to each such Assessor’s Parcel as needed to satisfy the Special Tax Requirement.
Fourth: If additional moneys are needed to satisfy the Special Tax Requirement after the first three steps have been completed, the Special Tax on each Assessor's Parcel of Developed Property whose Maximum Special Tax is the Backup Special Tax shall be increased Proportionately from the Assigned Special Tax up to 100% of the Maximum Special Tax as needed to satisfy the Special Tax Requirement.
Fifth: If additional moneys are needed to satisfy the Special Tax Requirement after Attachment 2
8 Amended and Restated Rate and Method of Apportionment CFD No. 2022-1N (IA No. 5) (Olsen/South Chandler Ranch - Facilities) the first four steps have been completed, the Special Tax shall be levied Proportionately on each Assessor’s Parcel of Taxable Property Owner Association Property up to 100% of the Maximum Special Tax applicable to each such Assessor’s Parcel as needed to satisfy the Special Tax Requirement.
Sixth: If additional moneys are needed to satisfy the Special Tax Requirement after the first five steps have been completed, the Special Tax shall be levied Proportionately on each Assessor’s Parcel of Taxable Public 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 10% above the amount that would have been levied in that Fiscal Year had there never been any such delinquency or default.
E EXEMPTIONS
No Special Tax shall be levied on Property Owner Association Property or Public Property in CFD No. 2022-1N (IA No. 5), provided that an Assessor’s Parcel shall not be exempt and shall be classified as Taxable Property Owner Association Property and Taxable Public Property if exempting such property would reduce the sum of all Taxable Property to less than 15.6 Acres. Tax-exempt status will be assigned by the CFD Administrator in the chronological order in which such Assessor’s Parcels or portions thereof in CFD No. 2022- 1N (IA No. 5) become Public Property or Property Owner Association Property. However, should an Assessor’s Parcel no longer be classified as Public Property or Property Owner Association Property, it will, from that point forward, be subject to the Special Tax.
Property Owner Association Property or Public Property that is not exempt from the Special Tax under this section shall be subject to the levy of the Special Tax and shall be taxed Proportionately as part of the fifth step and sixth step in Section D above, respectively, at up to 100% of the applicable Maximum Special Tax for Taxable Property Owner Association Property or Taxable Public Property.
In addition, no Special Tax shall be levied on any Assessor’s Parcel in any Fiscal Year in which such Assessor’s Parcel is classified as Exempt Welfare Exemption Property.
F APPEALS AND INTERPRETATIONS
Any taxpayer may file a written appeal of the Special Tax on his/her property with the CFD Administrator, provided that the appellant is current in his/her payments of Special Taxes.
During the pendency of an appeal, all Special Taxes previously levied must be paid on or before the payment date established when the levy was made. The appeal must specify the reasons why the appellant claims the Special Tax is in error. The CFD Administrator shall review the appeal, meet with the appellant if the CFD Administrator deems necessary, and advise the appellant of its determination. If the CFD Administrator agrees with the appellant, the CFD Administrator shall eliminate or reduce the Special Tax on the appellant’s property.
If the CFD Administrator disagrees with the appellant and the appellant is dissatisfied with the determination, the appellant then has 30 days in which to appeal to the Council by filing a written notice of appeal with the clerk of the Council, provided that the appellant is current in his/her payments of Special Taxes. The second appeal must specify the reasons for the disagreement with the CFD Administrator’s determination.
Attachment 2
9 Amended and Restated Rate and Method of Apportionment CFD No. 2022-1N (IA No. 5) (Olsen/South Chandler Ranch - Facilities) 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.
G PREPAYMENT
The following additional definitions apply to this Section G:
“CFD Public Facilities” means $8,700,000 or such lower amount (i) authorized by the Council to provide the public facilities to be funded under CFD No. 2022-1N (IA No. 5), or (ii) determined by the Council concurrently with a covenant that it will not issue any more Bonds to be supported by the Special Tax levied under this Rate and Method of Apportionment.
“Construction Fund” means a fund held by the Trustee to fund CFD Public Facilities. “Future Facilities Cost” means the CFD Public Facilities minus public facility costs previously funded, or that can be funded from funds in the Construction Fund. “Outstanding Bonds” means all previously issued Bonds secured by the levy of the 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 the Special Tax.
G.1 Prepayment in Full
The Maximum Special Tax obligation may be prepaid and permanently satisfied for (i) Assessor’s Parcels of Developed Property, (ii) Assessor’s Parcels of Final Mapped Property or Undeveloped Property for which a Building Permit has been issued, (iii) Assessor’s Parcels of Final Mapped Property or Undeveloped Property for which a Building Permit has not been issued; and (iv) Assessor’s Parcels of Public Property or Property Owner’s Association Property that are not exempt pursuant to Section E.
The Maximum 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 Maximum 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 CFD No. 2022-1N (IA No. 5) 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 Prepayment Amount.
The Prepayment Amount shall be calculated as follows (capitalized terms are defined below):
Prepayment Amount
Bond Redemption Amount
plus Redemption Premium
Attachment 2
10 Amended and Restated Rate and Method of Apportionment CFD No. 2022-1N (IA No. 5) (Olsen/South Chandler Ranch - Facilities) plus Future Facilities Amount
plus Defeasance Amount
plus Administrative Fees and Expenses
less Reserve Fund Credit
less Capitalized Interest Credit
Total: equals Special Tax 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 Final Mapped 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 Final Mapped Property or Undeveloped Property for which a Building Permit has not been issued, Public Property or Property Owner’s Association Property to be prepaid, 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 Special Taxes that could be levied at the Maximum Special Tax at 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 Cost.
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, which amount shall not be less than $0 (the “Future Facilities Amount”).
8. Determine the amount needed to pay interest on the Bond Redemption Amount from the first bond interest payment date following the current Fiscal Year until the earliest redemption date for the Outstanding Bonds on which Bonds can be redeemed from the Prepayment Amount.
9. Determine the Special Tax levied on the Assessor’s Parcel in the current Fiscal Attachment 2
11 Amended and Restated Rate and Method of Apportionment CFD No. 2022-1N (IA No. 5) (Olsen/South Chandler Ranch - Facilities) Year which has 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 CFD No. 2022-1N (IA No. 5), including the cost of computation of the Prepayment Amount, 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 Maximum 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 Amount, 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 Amount from the balance in the reserve fund on the prepayment date, but in no event shall such amount be less than zero.
14. If any capitalized interest for the Outstanding Bonds will not have been expended at the time of the first interest payment following the current Fiscal Year, the capitalized interest credit (the “Capitalized Interest Credit”) shall be calculated by multiplying the quotient derived pursuant to paragraph 3 by the expected balance in the capitalized interest account after such first interest payment.
15. 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, less the Capitalized Interest Credit.
16. 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 CFD No. 2022-1N (IA No. 5).
The Prepayment Amount may not be sufficient to redeem an aggregate principal amount of Outstanding Bonds which is equally divisible by $5,000. 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 Attachment 2
12 Amended and Restated Rate and Method of Apportionment CFD No. 2022-1N (IA No. 5) (Olsen/South Chandler Ranch - Facilities) 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 Maximum Special Tax obligation is prepaid, the Council shall cause a suitable notice to be recorded in compliance with the Act, to indicate the prepayment of Maximum Special Tax obligation and the release of the Special Tax lien for the Assessor’s Parcel, and the obligation to pay the Special Tax for such Assessor’s Parcel shall cease.
Notwithstanding the foregoing, no Special Tax prepayment shall be allowed unless the amount of Maximum Special Tax that may be levied on all Assessor’s Parcels of Taxable Property after the proposed prepayment will be at least 1.1 times maximum annual debt service on the Bonds that will remain outstanding after the prepayment plus the estimated annual Administrative Expenses.
G.2 Prepayment in Part
The Maximum Special Tax obligation for (i) Assessor’s Parcels of Developed Property, (ii) Assessor’s Parcels of Final Mapped Property or Undeveloped Property for which a Building Permit has been issued, (iii) Assessor’s Parcels of Final Mapped Property or Undeveloped Property for which a Building Permit has not been issued; and (iv) Assessor’s Parcels of Public Property or Property Owner’s Association Property that are not exempt pursuant to Section E, 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 = The partial prepayment;
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; and
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 Maximum Special Tax obligation for the Assessor’s Parcel shall notify the CFD Administrator of (i) such owner’s intent to partially prepay the Maximum Special Tax obligation, (ii) the percentage of the Maximum 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 CFD No. 2022-1N (IA No. 5) in calculating the amount of a partial prepayment. 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 for the Assessor’s Parcel. A Partial Prepayment 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 Maximum Special Tax obligation is partially prepaid, the CFD Administrator shall (i) distribute the Partial Prepayment Amount as provided in Paragraph 16 of Section G.1, and (ii) indicate in the records of CFD No. 2022-1N (IA No. 5) that there has been a Partial Prepayment for the Attachment 2
13 Amended and Restated Rate and Method of Apportionment CFD No. 2022-1N (IA No. 5) (Olsen/South Chandler Ranch - Facilities) Assessor’s Parcel and that a portion of the Special Tax obligation equal to the remaining percentage (1.00 - F) of Special Tax obligation will continue on the Assessor’s Parcel pursuant to Section D.
H SPECIAL TAX REDUCTION
The following definitions apply to this Section H:
"Base Price" means, with respect to the Dwelling Units in each Plan Type, as of the date of the applicable Price Point Study, the base price of such Dwelling Units, estimated by the Price Point Consultant as of such date, based upon their actual or expected characteristics, such as living area, view, or lot size, but excluding potential appreciation or premiums, options or upgrades.
"Plan Type" means a discrete residential plan type generally consisting of residential Dwelling Units that share a common product type (e.g., detached, attached) and that have nearly identical amounts of living area, that is constructed or expected to be constructed within CFD No. 2022-1N (IA No. 5) as identified in the Price Point Study. "Price Point Consultant" means any consultant or firm of such consultants selected by CFD No. 2022-1N (IA No. 5) that (a) has substantial experience in performing price point studies or otherwise estimating or confirming pricing for Dwelling Units within community facilities districts, (b) is well versed in analyzing economic and real estate data that relates to the pricing of Dwelling Units in community facilities districts, (c) is independent and not under the control of CFD No. 2022-1N (IA No. 5), the City, or the developer, (d) does not have any substantial interest, direct or indirect, with or in CFD No. 2022-1N (IA No. 5), the City, any owner of real property in CFD No. 2022- 1N (IA No. 5), or any real property in CFD No. 2022-1N (IA No. 5), and (e) is not connected with CFD No. 2022-1N (IA No. 5) or the City as an officer or employee thereof, but who may be regularly retained to make reports to CFD No. 2022-1N (IA No. 5) or the County.
"Price Point Study" means a price point study or a letter updating a previous price point study, which (a) has been prepared by the Price Point Consultant, (b) sets forth the Plan Types constructed or expected to be constructed within CFD No. 2022-1N (IA No. 5), (c) sets forth the estimated number of constructed and expected Dwelling Units for each Plan Type, (d) sets forth estimates of the Base Price for each Plan Type and (e) uses a date for establishing such Base Prices that is no earlier than 30 days prior to the date the Price Point Study is delivered to the CFD Administrator pursuant to Section H herein.
"Total Effective Tax Rate" means, for a Plan Type, (a) the Total Tax Burden for such Plan Type divided by (b) the Base Price for such Plan Type, converted to a percentage. "Total Effective Tax Rate Limit" means, 1.90%.
"Total Tax Burden” means, with respect to a Plan Type, for the Fiscal Year for which the calculation is being performed, the sum of the Assigned Special Tax and estimated ad valorem property taxes, special assessments, special taxes for any overlapping community facilities districts, and any other governmental taxes, fees and charges levied or imposed on Dwelling Units of such Plan Type in CFD No. 2022- 1N (IA No. 5) in such Fiscal Year or that would have been levied on all such Dwelling Units had these Dwelling Units been subject to such levies (excluding homeowner’s association dues and Property Assessed Clean Energy (“PACE”) charges imposed Attachment 2
14 Amended and Restated Rate and Method of Apportionment CFD No. 2022-1N (IA No. 5) (Olsen/South Chandler Ranch - Facilities) pursuant to AB 811 or SB 555, that are levied on individual Assessor’s Parcels, or any other charges applicable to the Assessor’s Parcels initiated by the homeowner after the close of escrow).
Prior to the issuance of a second series of Bonds (or the first series of Bonds, if such series is the final series of Bonds, as determined by the City), the following steps shall be taken for each Land Use Class of for-sale Residential Property in CFD No. 2022- 1N (IA No. 5) for evaluating the Special Tax:
Step No.:
1. At least 30 days prior to the issuance of Bonds, a Price Point Study shall be completed and delivered to the CFD Administrator.
2. The CFD Administrator shall determine the Total Tax Burden and Total Effective Tax Rate for each Plan Type in CFD No. 2022-1N (IA No. 5).
3. Separately, for each Land Use Class of for-sale Residential Property in CFD No. 2022-1N (IA No. 5), the CFD Administrator shall determine whether or not the Total Effective Tax Rate for all Plan Types in a Land Use Class is less than or equal to the Total Effective Tax Rate Limit.
a. If the Total Effective Tax Rate for all Plan Types in a Land Use Class in CFD No. 2022-1N (IA No. 5) is less than or equal to the Total Effective Tax Rate Limit, then there shall be no reduction in Special Tax for such Land Use Class in CFD No. 2022-1N (IA No. 5).
b. If the Total Effective Tax Rate for any Plan Type in a Land Use Class in CFD No. 2022-1N (IA No. 5) is greater than the Total Effective Tax Rate Limit , the CFD Administrator shall calculate a revised Assigned Special Tax for that Land Use Class in CFD No. 2022-1N (IA No. 5), such that the revised Assigned Special Tax does not cause the Total Effective Tax Rate for any Plan Type in such Land Use Class to exceed the Total Effective Tax Rate Limit.
4. If the Assigned Special Tax for any Land Use Class is revised pursuant to step
3.b. above, the CFD Administrator shall also prepare and execute a Certificate to Amend the Special Tax substantially in the form of Exhibit “A” hereto and shall deliver such Certificate to Amend the Special Tax to CFD No. 2022-1N (IA No. 5). The Certificate to Amend the Special Tax shall be completed for all Land Use Classes and shall set forth, as applicable, either (i) the reduced Assigned Special Tax for a Land Use Class as calculated pursuant to step 3.b., or (ii) the Assigned Special Tax as identified in Table 1 of Section C for a Land Use Class that was not revised as determined pursuant to step 3.a. A reduction to the Assigned Special Tax in one Land Use Class shall not require a reduction in any other Land Use Class.
5. If the anticipated date of issuance of Bonds is within 180 days of the date of receipt of the Price Point Study by the CFD Administrator, CFD No. 2022-1N (IA No. 5) shall execute the acknowledgement on such Certificate to Amend the Special Tax dated as of the closing date of such Bonds, and upon the closing of such Bonds, the Assigned Special Tax for each Land Use Class shall be as set forth in such Certificate to Amend the Special Tax. If the date of issuance of Bonds is not within 180 days of the date of receipt of the Price Attachment 2
15 Amended and Restated Rate and Method of Apportionment CFD No. 2022-1N (IA No. 5) (Olsen/South Chandler Ranch - Facilities) Point Study by the CFD Administrator, such Certificate to Amend the Special Tax shall not be acknowledged by CFD No. 2022-1N (IA No. 5) and shall, as of such date, be void and of no further force and effect. In such case, if subsequently Bonds are expected to be issued, at least 30 days prior to that expected date, steps 1 through 5 of this section shall be performed based on a new Price Point Study.
6. After the execution by CFD No. 2022-1N (IA No. 5) of the acknowledgement on the Certificate to Amend the Special Tax, CFD No. 2022-1N (IA No. 5) shall cause to be recorded in the records of the County Recorder an Amended Notice of Special Tax Lien for CFD No. 2022-1N (IA No. 5) reflecting the Assigned Special Tax for CFD No. 2022-1N (IA No. 5) set forth in such Certificate to Amend the Special Tax.
7. If the Assigned Special Tax is not required to be changed for any Land Use Class based on the calculations performed under step 3 above, there shall be no reduction in the Assigned Special Tax and no Certificate to Amend the Special Tax shall be required.
I MANNER OF COLLECTION
The Special Tax will be collected in the same manner and at the same time as ordinary ad valorem property taxes; provided, however, that CFD No. 2022-1N (IA No. 5) may directly bill the Special Tax, may collect the Special Tax at a different time or in a different manner if necessary to meet its financial obligations, and may covenant to foreclose and may actually foreclose on delinquent Assessor’s Parcels as permitted by the Act.
J TERM OF SPECIAL TAX
The Special Taxes shall be levied until the final series of Bonds have matured, provided that the Special Taxes shall not be levied after Fiscal Year 2073-2074. The Special Taxes will cease to be levied in an earlier Fiscal Year if the CFD Administrator has determined that all required interest and principal payments on the Bonds have been paid, no delinquent Special Taxes remain uncollected, and the City has covenanted that it will not issue any more Bonds (other than refunding Bonds) to be supported by Special Taxes levied under this Rate and Method of Apportionment as described in Section D.
Attachment 2
A-1 Amended and Restated Rate and Method of Apportionment CFD No. 2022-1N (IA No. 5) (Olsen/South Chandler Ranch - Facilities)
EXHIBIT A
CERTIFICATE TO AMEND THE SPECIAL TAX
IMPROVEMENT AREA NO. 5
OF THE CITY OF PASO ROBLES
COMMUNITY FACILITIES DISTRICT NO. 2022-1N (OLSEN/SOUTH
CHANDLER RANCH - FACILITIES)
TAX REDUCTION CERTIFICATE
1. Pursuant to Section H of the Rate and Method of Apportionment, as attached to the Notice of Special Tax Lien, recorded in the Official Records of the County of San Luis Obispo as Instrument No. XXXXXX on MM/DD/YYYY, the City of Paso Robles (the “City”) hereby reduces the Assigned Special Taxes for Developed Property within CFD No. 2022- 1N (IA No. 5) set forth in Table 1 of the Rate and Method of Apportionment for CFD No. 2022-1N (IA No. 5).
2. The calculations made pursuant to Section H were based upon a Price Point Study that was received by the CFD Administrator on _________________.
3. The information in Table 1, relating to the Assigned Special Tax for Developed Property within CFD No. 2022-1N (IA No. 5) shall be amended and restated in full as follows:
Attachment 2
A-2 Amended and Restated Rate and Method of Apportionment CFD No. 2022-1N (IA No. 5) (Olsen/South Chandler Ranch - Facilities) Table A-1: Assigned Special Tax for Developed Property
Land Use
Class Residential Floor Area Assigned Special Tax
1 RESIDENTIAL PROPERTY (>= 2,900 SF) [$ ] PER DWELLING UNIT 2 RESIDENTIAL PROPERTY (2,700 - 2,899 SF) [$ ] PER DWELLING UNIT 3 RESIDENTIAL PROPERTY (2,500 - 2,699 SF) [$ ] PER DWELLING UNIT 4 RESIDENTIAL PROPERTY (2,300 - 2,499 SF) [$ ] PER DWELLING UNIT 5 RESIDENTIAL PROPERTY (2,100 - 2,299 SF) [$ ] PER DWELLING UNIT 6 RESIDENTIAL PROPERTY (1,900 - 2,099 SF) [$ ] PER DWELLING UNIT 7 RESIDENTIAL PROPERTY (1,700 - 1,899 SF) [$ ] PER DWELLING UNIT 8 RESIDENTIAL PROPERTY (< 1,700 SF) [$ ] PER DWELLING UNIT 9 NON-RESIDENTIAL PROPERTY $44,176 PER ACRE
4. Upon execution of the certificate by the City and CFD No. 2022-1N (IA No. 5), the City shall cause an amended Notice of Special Tax Lien for CFD No. 2022-1N (IA No. 5) to be recorded reflecting the modifications set forth herein.
Submitted:
CFD ADMINISTRATOR
By: Date:
By execution hereof, the undersigned acknowledges, on behalf of CFD No. 2022-1N (IA No. 5), receipt of this certificate and modification of the Rate and Method of Apportionment as set forth in this certificate.
Improvement Area No. 5 of Community Facilities District No. 2022-1N (Olsen/South Chandler Ranch - Facilities) of the City of Paso Robles.
By: Date as of:
Attachment 2
APPENDIX B
City of Paso Robles
Community Facilities District Report
Community Facilities District No. 2022-1N
BOUNDARY MAP
Attachment 2
Attachment 2
Attachment 2
18201 VON KARMAN AVENUE, SUITE 220
IRVINE, CA 92612
PHONE: (800) 969-4DTA
Public Finance
Public-Private Partnerships
Development Economics
Clean Energy Bonds
www.FinanceDTA.com
Attachment 2
Council Agenda Report
From: Leslie Frazier, City Engineer/Deputy Community Development Director Subject: Approval of Second Reading by Title Only and Adoption of Ordinance 1160 N.S. of the El Paso de Robles Municipal Code Amending Chapter 11.20 Regarding Trenching and Pavement PreservationCEQA Determination: The City finds that this action is exempt from the California
Environmental Quality Act (CEQA) pursuant to State CEQA Guidelines section 15061(b)(3) because it can be seen with certainty that there is no possibility that the Ordinance may have a significant effect on the environment
Date: May 20, 2025
Facts
1. The City’s street network of more than 350 lane miles is a valuable public resource that requires proper maintenance and management to maximize pavement longevity and minimize the cost to taxpayers.
2. In November 2012, voters approved Measure E-12, increasing the City sales tax by 0.5% for a 12-year period beginning April 1, 2013 and sunsetting March 31, 2025. The main priorities of this tax measure were to fund street repair, maintenance and improvement.
3. In November 2024, voters approved Measure I-24, extending Measure E-12’s sales tax increase indefinitely. This 0.5% supplemental sales tax has generated $5 million to $7 million annually which is invested back into our community through road maintenance, street repair and improvement.
4. The City also utilizes additional funding sources for road maintenance including grants, the City’s General, Measure J-20, Gas Tax, Senate Bill 1 (SB1), and Traffic Impact Fees (TIF) Funds. The City has expended anywhere between $5 million to $9 million annually for road maintenance and rehabilitation projects since 2012, with a current total budget of $28 million.
5. Pavement Condition Index (PCI) is a numerical index between 0 and 100, with 100 being best, that is used to indicate the general condition of a pavement section. The City-wide PCI average is 55, with Westside streets averaging 47 and Eastside streets averaging 61. For context, California cities as a whole have an average PCI of 62, San Luis Obispo County averages a PCI of 60, while the City of Atascadero averages a PCI of 48.
6. In order to improve roadway conditions, and increase City-wide PCI, additional roadway maintenance, restoration, resurfacing and continued City investment is required.
7. Since the approval of Measure E-12, the City has made substantial investments in roadway projects and has funded more than 44 different road maintenance projects in the City to date with additional roadway projects planned for the future using I-24 funding.
8. Pavement cuts significantly reduce the lifespan of streets, leading to premature deterioration and more frequent repairs, increasing costs to the City for roadway repair and maintenance, and decreasing City-wide PCI.
9. Limiting pavement cuts and maintaining pavement in good condition over a longer period of time increases pavement longevity, which in turn reduces maintenance expenses and improves City-wide PCI over the long term.
10. In 1942, City Council drafted and adopted Section 11.20 of the Paso Robles Municipal Code (PRMC), which contains provisions for street excavations through encroachment permits. Time, technology advances and prioritization of road repairs necessitated this section be updated.
11. In December 2006, the City Council approved the current Pavement Management Program which provides fundamental provisions for temporary trench repairs are contained in the Department of Public Works Standard Details and Specifications.
12. Adding a new Section 11.20.090 to PRMC Chapter 11.20, entitled “Pavement Preservation” would enable continued development, while protecting the City’s infrastructure investment, preserving the longevity and quality of our streets, and providing a pleasing appearance to newly paved roadway surfaces.
13. On May 6, 2025, the City Council, at its regularly scheduled meeting, held a public hearing and introduced for first reading Ordinance No. 1160 N.S. of the El Paso de Robles Municipal Code Amending Chapter 11.20 Regarding Trenching and Pavement Preservation.
Community Outreach
The Community Development Department solicited feedback from industry stakeholders comprising a range of public utilities and telecommunications companies who typically place facilities within the public right of way, during development of the proposed ordinance, which included American Dark Fiber, Astound, Charter, ATT, and PG&E. Comments were received by Astound, AT&T, and PG&E, which were primarily targeted at the Microtrenching Standards for Facilities in the Public Right-of-Way that were adopted by the City Council by Resolution 25-049 at its May 6, 2025 regularly scheduled meeting contemporaneously with first reading of the proposed ordinance. The remaining parties declined to provide comments in advance of the scheduled City Council meeting.
Options
1. Take no action;
2. Approve the second reading by title only and adopt Ordinance 1160 N.S. amending Chapter 11.20 of the municipal code regarding trenching and pavement preservation;
3. Provide alternative direction to staff.
Analysis and Conclusions
Periodically, contractors approach the City and request encroachment permits to excavate street segments for improvements or repairs. Sometimes, these excavations occur soon after a street has been constructed, overlaid, or slurry sealed. Contractors are required to repair the pavement cuts in accordance with the City’s current Standard Details and Specifications; however, even with proper repair, street cuts have the potential to significantly alter and degrade the pavement surface and reduce pavement longevity.
As a result, the City proposes establishing protections on newly paved streets to minimize pavement degradation, maintain structural integrity, retain smooth surfaces, and limit negative visual impacts. With protections on newly paved streets in place, contractors with proposed projects requiring roadway excavation will: (a) need to plan and review potential conflicts with paving projects more effectively; (b) consider alternative deployment methods such as aerial deployments or deployment within existing conduits; or (c) qualify for an exception from the pavement preservation requirement.
The proposed Ordinance seeks to add a new Section 11.20.090 entitled “Pavement Preservation” to Chapter 11.20 “Street Excavation” to preserve street pavement by restricting trenching and excavating within any street that has been newly constructed, reconstructed, slurry sealed, resurfaced, overlaid, or the subject of pavement rehabilitation within the past five (5) years. The foregoing restriction includes several exceptions for emergency encroachments; work mandated by city, state, or federal legislation; utility services for new development; essential utility repairs to prevent interruption of service; and other situations deemed by the City Engineer to be in the best interest of the general public.
In the event a proposed excavation qualifies for an exception, permittees would be subject to a set of standard conditions of approval outlined in Section 11.20.090 imposing expanded pavement repair and restoration requirements beyond the current City pavement restoration standard to preserve pavement quality and longevity of the newly paved street.
Fiscal Impact
There is no direct fiscal impact by amending Chapter 11.20 to add trenching and pavement preservation requirements for encroachment of the public right-of-way. Over the long-term, the City expects the updated trenching and pavement preservation requirements to reduce the City’s pavement restoration and rehabilitation costs by reducing the impact of certain pavement cuts and extending the longevity of newly paved streets.
CEQA
The City finds that this action is exempt from the California Environmental Quality Act (CEQA) pursuant to State CEQA Guidelines section 15061(b)(3) because it can be seen with certainty that there is no possibility that the Ordinance may have a significant effect on the environment.
Recommendation (Option 2)
Approve second reading by title only and adopt Ordinance No. 1160 N.S. Amending Chapter 11.20 of the El Paso de Robles Municipal Code regarding trenching and pavement preservation only and adopt Ordinance No. 1160 N.S. Amending Chapter 11.20 of the El Paso de Robles Municipal Code regarding trenching and pavement preservation
Attachments
1. Ordinance No. 1160 N.S. – Amending Chapter 12.20 of the Municipal Code
Attachment 1
ORDINANCE NO. 1160 N.S.
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF EL PASO DE ROBLES ADDING SECTION 11.20.090 OF THE MUNICIPAL CODE OF THE CITY OF EL PASO DE ROBLES
REGARDING PAVEMENT PRESERVATION WITHIN THE PUBLIC RIGHT-OF-WAY, AND
DETERMINING THE ORDINANCE TO BE EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT PURSUANT TO STATE CEQA GUIDELINES SECTION 15061(B)(3) WHEREAS, the City of El Paso de Robles California (“City”) is a municipal corporation, duly organized under the constitution and laws of the State of California; and WHEREAS, pursuant to the California Constitution, Article, XI, section 7, the City may make and enforce within its limits all local, police, sanitary, and other ordinances and regulations not in conflict with general law; and
WHEREAS, the California Constitution grants the City the right to adopt reasonable regulations regarding its rights-of-way, which reasonable regulations would include the establishment of protections on newly paved streets; and
WHEREAS, the public right-of-way is a unique public resource held in trust for the benefit of the public; this physically limited resource requires proper management to maximize its efficiency and minimize the costs to taxpayers, to protect against foreclosure of future economic expansion because of premature exhaustion of the public right-of-way, and to minimize the inconvenience to and negative effects on the public from use of the public right-of-way by repeated excavations; and WHEREAS, to protect the integrity and quality of streets and public right-of-way, the El Paso de Robles Municipal Code sets forth, in Chapter 11.20 (“Street Excavations”), a permitting and fee system for encroachments and trench cuts to City streets; and
WHEREAS, protections on newly paved streets would safeguard the City’s investment in its infrastructure, preserve the life of streets, and provide a safe driving surface and a pleasing appearance to roadway surfaces that have undergone utility and other excavation work; and WHEREAS, the City desires to establish protections on newly paved streets through the adoption of this Ordinance to further the purposes stated herein.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF EL PASO DE ROBLES DOES HEREBY ORDAIN AS FOLLOWS:
Section 1. All of the above recitals are true and correct and are incorporated herein by reference.
Section 2. Section 11.20.090 of Chapter 11.20 of Title 11 of the El Paso de Robles Municipal Code, entitled “Pavement Preservation” is hereby added to read in its entirety as follows:
“Section 11.20.090 – Pavement Preservation
A. Pavement Preservation on Newly Paved Streets. Excavating, cutting, drilling, trenching, digging, potholing or otherwise disturbing the surface of any newly paved street is prohibited. For
Attachment 1
purposes of this Section, the term “Newly Paved Street’ shall mean any street that was constructed, reconstructed, slurry sealed, resurfaced, overlaid, or the subject of pavement rehabilitation within the past five (5) years.
B. Exceptions. An exception to the above pavement preservation requirement for newly paved streets may be granted in the following situations at the discretion of the City Engineer. Applicants seeking to excavate, cut, drill, trench, dig, pothole or otherwise disturb the surface of any newly paved street must submit a written request to the City Engineer, as part of their initial application submittal to the City, indicating which of the following exceptions apply to the proposed work with adequate supporting documentation as deemed reasonably necessary by the City Engineer:
1. Emergency encroachments that are immediately necessary to preserve life, property, or public health and safety from an imminent threat of harm;
2. Work that is mandated by city, state, or federal legislation, or initiated by the City;
3. Work necessary for new development or new customers to provide utility service for buildings or parcels where no other reasonable means of providing service exists;
4. Repairs or modifications that are necessary to prevent the interruption of essential utility service;
5. Other situations deemed by the City Engineer to be in the best interest of the general public.
Emergencies and other exceptions do not exempt the permittee from any requirements to repair the pavement as required by this section or as conditions of approval of a permit. The provisions of this section shall not apply to officers or employees of the City acting in the discharge of their official duties.
C. Permit Conditions. Any approval of an excavation in a newly paved street shall be subject to the following conditions in this subsection (C). The City Engineer shall have discretion to modify, supplement, waive or amend these conditions as may be necessary or appropriate under the circumstances to protect public health and safety or in furtherance of the goals of this section.
1. If affected pavement is isolated to one side of the centerline, permittee shall grind and overlay to a depth of 2 inches with a width extending from the curb to the centerline for the entirety of the length of the excavation.
2. If affected pavement extends past the centerline, permittee shall grind and overlay to a depth of 2 inches with a width extending from the curb to curb for the entirety of the length of the excavation.
3. For excavations perpendicular to the curb face where affected pavement is isolated to one side of the centerline, permittee shall grind and overlay to a depth of 2 inches with a width extending from the curb to the centerline and a length equal to 10 feet on both sides of the excavation.
Attachment 1
4. For excavations perpendicular to the curb face where affected pavement extends past the centerline, permittee shall grind and overlay to a depth of 2 inches with a width extending from the curb to curb and a length equal to 10 feet on both sides of the excavation.
5. No pavement restoration is required for driveway aprons, if permittee cuts at edge of gutter and uses edge of existing asphalt concrete as batter board.
6. For all pavement restoration, permittee shall match existing material of the roadway, unless waived by the City Engineer.
7. Excavations utilizing trenchless options, including but not limited to pipe lining or pipe bursting, shall be subject to reduced pavement restoration requirements as deemed appropriate by the City Engineer on a case by case basis.
Section 3. CEQA. The City finds that this action is exempt from the California Environmental Quality Act (CEQA) pursuant to State CEQA Guidelines section 15061(b)(3) because it can be seen with certainty that there is no possibility that the Ordinance may have a significant effect on the environment.
Section 4. Severability. If any section, subsection, sentence, clause, phrase, or portion of this ordinance is for any reason held invalid or unconstitutional, such decision shall not affect the validity of the remaining portions of this ordinance.
Section 5. Effective Date. This Ordinance shall be in full force and effect 30 days after its passage and adoption as provided by Government Code section 36397.
Section 6. Publication. The City Clerk shall certify to the adoption of this Ordinance and shall cause a summary thereof to be published at least five (5) days prior to the meeting at which the proposed Ordinance is to be adopted and shall post a certified copy of the proposed Ordinance in the Office of the City Clerk. Within fifteen (15) days of the adoption of the Ordinance, the City Clerk shall cause a summary of the Ordinance to be published, including the vote for and against the same, in accordance with Government Code Section 36937.
INTRODUCED at a regular meeting of the City Council held on May 6 , 2025, for first reading by the City Council of the City of El Paso de Robles, and adopted on the 20th day of May, 2025, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Attachment 1
John R. Hamon, Jr., Mayor
ATTEST:
Melissa Boyer, City Clerk
Council Agenda Report
From: Freda Berman, Public Works Director
Subject: Approval of a Change Order to the Design Contract for the Pickleball Court Complex CEQA Determination: The approval of a change order to the design contract for the Pickleball Court Complex is not a project subject to the California Environmental Quality Act (“CEQA”) because it has no potential to result in either a direct, or reasonably foreseeable indirect, physical change in the environment. (State CEQA Guidelines, §§ 15060, subd. (b)(2)-(3), 15378.)
Date: May 20, 2025
Facts
1. On August 3, 2021, City Council received a report regarding pickleball court capacity and approved initiation of design services for the construction of a pickleball court complex at Sherwood Park to include up to eight lighted courts, restrooms, and parking improvements.
2. On September 7, 2021, City Council received a report regarding allocation of American Rescue Plan Act 2021 (ARPA) funds and approved $833,500 of those funds for the pickleball project. Parks and Recreation Development Impact Fees have also been allocated to the project and can fund 30% of the project total consistent with the Development Impact Justification Study.
3. On October 5, 2021, City Council awarded a contract for design services to SSA Landscape Architects, Inc. for the pickleball court construction project, in the amount of $217,798.
4. Originally, the pickleball courts were envisioned to be located on the south side of Scott Street adjacent to Sherwood Dog Park. However, during initial design development it was determined that floodplain considerations and accommodations made that site unfeasible. The project was relocated to the north side of Scott Street adjacent to Sherwood Well #9. That site presented challenges as well with mandated design adjustments required for well operation and maintenance. The final pickleball complex design includes seven lighted courts, restrooms, parking improvements and associated amenities.
5. Since the design contract was awarded, the City has authorized two change orders to SSA’s contract:
$6,764 for additional survey to confirm a new court location; and $43,384 for expanded civil engineering services due to the site change bringing the total design contract to $267,946.
6. The City’s Parks and Recreation Advisory Committee endorsed the design of the courts on August 8, 2022, and City Council approved the design and authorized preparation of construction bid documents on August 16, 2022.
7. On June 4, 2024, City Council authorized the pickleball project to be bid for construction with an estimated construction cost of $3.4 million, an increase of $2.2 million over the original estimate of $1.2 million.
8. On November 19, 2024, City Council awarded a contract for construction of the pickleball court complex in the amount of $3,279,897 to JJ Fisher Construction, Inc. By taking this action, City Council also approved increasing Park Development Impact Fee appropriations by $857,448, the maximum
allowable under the City’s fee program, and reallocating ARPA funding from the South Vine Street Bridge project to fund the balance of the project.
9. As a first order of business, JJ Fisher Construction was required to pothole for the Sherwood Well #9 discharge line. At that time, it was discovered that the discharge lines were located in conflict with court construction causing the courts to be shifted to the north (in order to achieve a 4’ horizontal clearance from the well discharge line).
10. On April 17, 2025, SSA Landscape Architects, Inc. submitted a change order request totaling $26,202 to account for plan updates necessary when the courts moved to the north and expanded construction administration services including requested attendance at standing construction meetings, additional site visits and a longer construction period due to the long lead time on the prefabricated restroom. The newly revised contract amount is $294,148.
Options
1. Take no action;
2. Approve a change order for $26,202 to the existing contract with SSA Landscape Architects, Inc. for design services for the pickleball court complex; or
3. Provide alternative direction to staff.
Analysis and Conclusions
Since the project was initiated in 2021, the pickleball project has changed, from courts next to the Sherwood Dog Park to courts next to Sherwood Well #9, increasing the complexity of the project and resulting in additional design and engineering work. When complete, the pickleball project at Sherwood Park will provide the community with a state-of-the-art recreational complex that not only serves those that play pickleball but also improves Sherwood Park for all residents with a new restroom, community barbeque and gathering space and parking lot.
City Purchasing Policy allows for change orders at various levels depending on the amount of the contract.
For SSA’s original $217,798 design contract, change orders totaling 25% of the contract are allowed without additional approval. Change orders, in aggregate, that exceed the 25% limit must be approved by City Council.
The first two change orders to the SSA contract amount to 23% of the original contract amount. This third change order will exceed the 25% change order limit necessitating Council approval of the change.
Fiscal Impact
The approved pickleball court project construction budget includes a 15% contingency totaling $491,984 of which only $1,000 has been spent. As such this change order request can be accommodated and no further action is needed.
Design 267,946
Construction 3,279,897
Construction Contingency 491,984
PG&E 39,000
Other Misc. Items 12,584
4,091,411
CEQA
The approval of a change order to the design contract for the Pickleball Court Complex is not a project subject to the California Environmental Quality Act (“CEQA”) because it has no potential to result in either a direct, or reasonably foreseeable indirect, physical change in the environment. (State CEQA Guidelines, §§ 15060, subd. (b)(2)-(3), 15378.)
Recommendation
Approve Resolution 25-XXX, authorizing the City Manager to execute a Change Order to the existing contract with SSA Landscape Architects, Inc. in the amount of $26,202 bringing the total contract $294,148, with the City Manager and City Attorney authorized to make minor, technical and nonsubstantive changes as necessary, consistent with Council’s overall intent.
Attachments
1. Resolution 25-XXX – Change Order SSA Landscape Architects, Inc.
2. Change Order Request – SSA Landscape Architects, Inc.
Attachment 1
RESOLUTION 25-XXX
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EL PASO DE ROBLES APPROVING A CHANGE ORDER TO THE DESIGN CONTRACT WITH SSA LANDSCAPE ARCHITECTS, INC.
IN THE AMOUNT OF $26,202 FOR THE PICKLEBALL COURT COMPLEX CONSTRUCTION PROJECT WHEREAS, on August 3, 2021, City Council received a report regarding pickleball court capacity and approved initiation of design services for the construction of a pickleball court complex at Sherwood Park; and
WHEREAS, on October 5, 2021, City Council awarded a contract for design services to SSA Landscape Architects, Inc. for the pickleball court construction project in the amount of $217,798; and WHEREAS, due to floodplain considerations, the project moved from the originally envisioned site next to Sherwood Dog Park to the north side of Scott Street adjacent to Sherwood Well #9 and includes seven lighted courts, restrooms, parking improvements and associated amenities; and WHERAS, since the contract was awarded, the City has authorized two change orders to SSA’s contract:
$6,764 for additional survey to confirm a new court location; and $43,384 for expanded civil engineering services due to the site change bringing the total design contract to $267,946; and WHEREAS, on November 19, 2024, City Council awarded a contract for construction of the pickleball court complex in the amount of $3,279,897 to JJ Fisher Construction; and WHEREAS, JJ Fisher Construction was required to pothole for the Sherwood Well #9 discharge line, that if found, would require the pickleball courts to move to the north; and WHEREAS, the discharge line was found to be in conflict with court construction and the courts shifted to the north to achieve a 4’ horizontal clearance from the well discharge line; and WHEREAS, on April 17, 2025, SSA Landscape Architects, Inc. submitted a change order request totaling $26,202 to account for plan updates necessary when the courts moved to the north and expanded construction administration services bringing the total design contract to $294,148; and WHEREAS, City Purchasing Policy as it applies to this contract allows for change orders totaling 25% of the original contract amount, and as this change order will exceed that limit, Council approval is required.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF EL PASO DE ROBLES DOES HEREBY RESOLVE AS FOLLOWS:
Section 1. All of the above recitals are true and correct and incorporated herein by reference.
Section 2. The City Council hereby approves a change order to SSA Landscape Architects, Inc. in the amount of $26,202 to their design contract bringing the total contract amount to $294,148 and authorizes the City Manager to execute the change order, subject to any minor, technical, or non-substantive changes as approved by the City Manager and the City Attorney.
Section 3. The approval of a change order to the design contract for the Pickleball Court Complex is not a project subject to the California Environmental Quality Act (“CEQA”) because it has no
Attachment 1
potential to result in either a direct, or reasonably foreseeable indirect, physical change in the environment. (State CEQA Guidelines, §§ 15060, subd. (b)(2)-(3), 15378.) APPROVED this 20th day of May, 2025, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
John R. Hamon, Jr., Mayor
ATTEST:
Melissa Boyer, City Clerk
EXHIBIT A – SCOPE OF WORK
April 17, 2025
Freda Berman – Public Works Director
City of Paso Robles
1000 Spring Street,
Paso Robles CA, 93446
SHERWOOD PARK PICKLEBALL COURTS ADD SERVICE 04: ADDITIONAL
CONSTRUCTION ADMINISTRATION
A. PROJECT UNDERSTANDING
This scope of work is proposed as an additional service to the original scope of work dated November 03, 2021. This amendment requests additional fees for expanded Construction Administration services including requested attendance at standing construction meetings as well as an additional (2) site visits throughout the course of construction. The working days for construction has increased due to long lead times on the prefabricated restroom building resulting in more administrative time than anticipated when preparing the initial proposal and contract.
Additional fees have been requested to shift pickleball courts north of their approved location to avoid a City well discharge line. Fees for this service include updating background files for contractor layout as well as revising grading plans in association with the court shift prepared by MNS Engineers, the Civil Engineer of record.
The proposed fee is in addition to the original contracted amount of ($217,798).
FEE PROPOSAL
The fees for the above Additional Scope of Work are as follows and will be billed per the original contract agreement:
Task One: Attend up to 40 hours of additional construction meetings $8,560 Task Two: Allow for (2) additional site visits $2,568
Task Three: Additional construction coordination $5,136 Task Four: Shift courts to avoid conflict with well discharge line $2,568 Additional Reimbursable Expenses:
MNS Engineers $6,930
Mileage for construction meetings $440
TOTAL ADD SERVICE 01 FEE $26,202
Attachment 2
Sherwood Park Pickleball Courts
Additional Service 04
180012.01
April 18, 2025
SSA Landscape Architects, Inc. City of Paso Robles
Christian Harris Freda Berman
Associate Principal Public Works Director
CRLA #6217
____________________________ ____________________________ Christian Harris Freda Berman
Dated: 06/10/2022 Dated:
____________________________ ____________________________ Attachment 2
March 17, 2025
SSA Landscape Architects, Inc.
Attention: Christian Harris, Associate Principal
303 Potrero Street, Suite 40-C
Santa Cruz, CA 95060
SUBJECT: DRAFT Amendment #1 – Sherwood Park Pickleball Court Project Dear Christian,
This amendment will address the grading and stormwater treatment redesign.
Potholing of the existing water discharge line was completed by the Contractor. Due to the actual location of the waterline, the lower bank of Pickleball Courts will need to be shifted 5’ to the north to achieve adequate clearance from the line.
In addition, the SW corner of the parking lot design needs to be revised to eliminate stormwater treatment due to the proximity of the existing water well and the PG&E access road.
Scope of Work
Task 1 – Grading Plan Revision
1.1 MNS will revise the grading plan to move the southerly pickleball courts to the north.
1.2 MNS will revise the grading plan and stormwater documentation to account for PG&E access road and existing water well.
Deliverables:
Revised Grading Plan and Stormwater Documentation
Schedule
MNS will revise the grading design within a week from the notice to proceed date.
Fee
The fee for the scope of work defined in this letter is $6,300. The detailed cost breakdown is attached.
Please let us know if we can provide any more information and feel free to call me to discuss this request at (805) 719-9807 or if you prefer, via email at [email protected].
Attachment 2
Sincerely,
MNS Engineers, Inc.
Michael Ip, PE
Principal Engineer
Attachment 2
Principal Engineer
Senior Project
Engineer
Assistant Engineer
Task Descriptions $325 $245 $185
Task 1.1 Grading Plan Revision - Waterline 1 8 12 21 $4,505 $4,505 Task 1.2 Grading Plan & SW Documentation Revision 1 6 7 $1,795 $1,795 Total Staff Hours 2 14 12
Total Staff Costs $650 $3,430 $2,220
$6,300
MNS Engineers, Inc., Team Resource Estimate
Amendment #1 - Sherwood Park Pickleball Court Project
GRAND TOTAL
28 Hours $6,300 $6,300
MNS Engineers
Staff Summary
MNS Resource Hours
Total Costs
Reimbursables
MNS Resource Costs
Task Summary
Project Summary
Attachment 2
2025 STANDARD SCHEDULE OF FEES
PROJECT/PROGRAM MANAGEMENT
Principal-In-Charge.............................. $375
Senior Project/Program Manager ..... 340
Project/Program Manager ................... 290
Assistant Project/Program Manager 265
Senior Project Coordinator.................. 210
Project Coordinator................................ 175
ENGINEERING
Principal Engineer................................. $325 Lead Engineer........................................... 285 Supervising Engineer............................. 270
Senior Project Engineer ........................ 245
Project Engineer ...................................... 220 Associate Engineer ................................. 200 Assistant Engineer .................................. 185
SURVEYING
Principal Surveyor................................. $295 Lead Surveyor........................................... 285 Supervising Surveyor............................. 245
Senior Project Surveyor ........................ 220
Project Surveyor ...................................... 195 Associate Project Surveyor.................. 185
Assistant Project Surveyor................... 170
Party Chief (PW)....................................... 200 Chainperson (PW)................................... 170 One-Person Survey Crew (PW)........... 240
TECHNICAL SUPPORT
CADD Manager...................................... $210 Supervising Technician ......................... 185
Senior Technician.................................... 175 Engineering Technician......................... 140
CONSTRUCTION MANAGEMENT
Principal Construction Manager...... $360
Senior Construction Manager............ 310
Senior Resident Engineer..................... 285
Resident Engineer................................... 275 Structure Representative...................... 270
Construction Manager.......................... 250
Assistant Resident Engineer................ 220
Sr. Construction Inspector (PW) ....... 200
Construction Inspector (PW) ............. 188
Office Administrator .............................. 140
PLANNING
Planning Director..................................$250 City Planner/Planning Manager......... 230
Principal Planner...................................... 215 Senior Planner.......................................... 200 Associate Planner.................................... 170 Assistant Planner..................................... 140 Planning Technician............................... 120
ADMINISTRATIVE SUPPORT
Senior Management Analyst ............ $210
Management Analyst ............................ 180
IT Technician............................................. 150 Graphics/Visualization Specialist....... 160
Administrative Assistant....................... 110
GOVERNMENT SERVICES
City Engineer ..........................................$280 Deputy City Engineer............................. 250
Assistant City Engineer ......................... 235
Plan Check Engineer.............................. 195
Permit Engineer....................................... 185 City Inspector ........................................... 175 Senior City Inspector (PW) ................. 200
City Inspector (PW)................................. 188 Principal Stormwater Specialist ......... 240
Senior Stormwater Specialist.............. 210
Stormwater Specialist............................ 180
Stormwater Technician ......................... 160
Building Official ....................................... 275 Senior Building Inspector..................... 210
Building Inspector................................... 185 Senior Grant Writer................................ 200 Grant Writer.............................................. 190 Associate Grant Writer.......................... 170
Assistant Grant Writer........................... 155
DIRECT EXPENSES
Use of outside consultants as well as copies, blueprints, survey stakes, monuments, computer plots, telephone, travel (out of area) and all similar charges directly connected with the work will be charged at cost plus fifteen percent (15%). Mileage will be charged at the current federal mileage reimbursement rate.
PREVAILING WAGE RATES
Rates shown with Prevailing Wage “(PW)” annotation are used for field work on projects subject to federal or state prevailing wage law and are subject to increases per DIR.
ANNUAL ESCALATION
Standard fee rates provided for each classification are subject to 5% annual escalation or the most recent US Bureau of Labor Statistics Consumer Price Index, whichever is higher.
OVERTIME
Overtime for non-exempt employees will be charged at 1.5 x hourly rate; overtime for exempt employees and other classifications will be charged at 1 x hourly rate.
Rev. 1/21/2025
Attachment 2
Council Agenda Report
From: Ditas Esperanza, Capital Projects Engineer
Subject: Approval of a Resolution Approving the Allocation of Senate Bill 1 Funds for Fiscal Year 2025-26
CEQA Determination: The City finds that this action is not a project under the California Environmental Quality Act pursuant to State Guidelines Section State CEQA Guidelines, §§ 15061, subd. (b)(3), and 15378, subd. (b)(2) and (b)(5).
Date: May 20, 2025
Facts
1. In April 2017, Governor Jerry Brown signed into law Senate Bill 1 (SB 1), the Road Repair and Accountability Act of 2017.
2. SB 1 provides significant funding for transportation infrastructure projects in California such as repair roads, freeways, and bridges, and also allocates funds for transit and safety improvements. The funding is split equally between state and local investments.
3. The California Transportation Commission (CTC) adopted Guidelines for Local Agencies for properly using allocated SB 1 funds. As a result, cities are required to submit a Council-approved resolution using the State-designed format.
4. For Fiscal Year 2025-26, it is projected that the City will receive approximately $792,397 in SB 1 monies.
5. On February 4, 2020, City Council adopted the Street Maintenance and Repair Plan, itemizing the list of projects to be completed over the next six years using General Funds (including Supplemental Sales Tax revenue), Gas Tax revenues, SB1 monies, and potential grant funds.
6. The roads identified to receive FY 2025-26 SB1 funds, as shown is listed below, are as follows:
Combine Street from Combine Circle to the east end
Combine Street from Tractor Street to Combine Circle
Danley Court from the north end to Wisteria Lane
Danley Court from Wisteria Lane to the south end
Germaine Way from the north end to 1,100 ft south
Oakwood Street from Tractor Street to Wallace Drive
Tractor Street from Golden Hill Road to Oakwood Street Tractor Street from Oakwood Street to Combine Street
Wallace Drive from Oakwood Street to the east end
Wisteria Lane from Golden Hill Road to the east end
Options
1. Take no action;
2. Designate the FY 2025-26 allocation of SB 1 funds for completion of the roads as listed herein; or
3. Provide alternative direction to staff.
Analysis and Conclusions
As stated above, the CTC requires the City to submit a Council-approved resolution using the Statedesigned format for utilization of SB 1 funds. It is currently estimated that the City will be allocated $792,397 in SB 1 funds for FY 2025-26. The roads identified, as listed above, were identified to receive FY 2025-26 SB 1 funding in the Council-adopted Street Maintenance and Repair Plan. The project scope for the designated roads is to address and repair the deteriorated surface of the roadway.
Fiscal Impact
The City’s 6-Year Street Maintenance and Repair Plan lists all of the road maintenance projects to be completed, including the funding source. For FY 2025-26, SB 1 funds, in the amount of approximately $792,397, will be used towards the roads listed above. This funding was identified in the FY 2025-26 budget as adopted by City Council.
CEQA
The City finds that this action is not a project under the California Environmental Quality Act pursuant to State Guidelines Section State CEQA Guidelines, §§ 15061, subd. (b)(3), and 15378, subd. (b)(2) and (b)(5).
Recommendation
Approve Resolution 25–XXX, designating the FY 2025-26 allocation of SB 1 funds for completion of the roads identified on Exhibit A and listed above to be completed using the City’s full allocation of $792,397 in FY 2025-26 SB 1 funds.
Attachments
1. Resolution 25-XXX – SB1 Funds Allocation FY 2025-26
a. Exhibit A - Map of Road Maintenance Repairs
Attachment 1
RESOLUTION 25-XXX
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EL PASO DE ROBLES ADOPTING A LIST OF PROJECTS FOR FISCAL YEAR 2025-26 FUNDED BY SB 1: THE ROAD REPAIR AND ACCOUNTABILITY ACT OF 2017
WHEREAS, Senate Bill 1 (SB 1), the Road Repair and Accountability Act of 2017 (Chapter 5, Statutes of 2017) was passed by the Legislature and signed into law by the Governor in April 2017 to address the significant multi-modal transportation funding shortfalls statewide; and WHEREAS, SB 1 includes accountability and transparency provisions that will ensure the residents of the City of El Paso de Robles are aware of the projects proposed for funding in our community and which projects have been completed each fiscal year; and
WHEREAS, the City must adopt by resolution a list of projects proposed to receive fiscal year funding from the Road Maintenance and Rehabilitation Account (RMRA), created by SB 1, which must include a description and the location of each proposed project, a proposed schedule for the project’s completion, and the estimated useful life of the improvement; and WHEREAS, the City, will receive an estimated $792,397.00 in RMRA funding in Fiscal Year 2025-26 from SB 1; and
WHEREAS, this is the 9
th year in which the City is receiving SB 1 funding and will enable the City to continue essential road maintenance and rehabilitation projects, safety improvements, repairing and replacing aging bridges, and increasing access and mobility options for the traveling public that would not have otherwise been possible without SB 1; and
WHEREAS, the City has undergone a robust public process to ensure public input into our community’s transportation priorities/the project list; and
WHEREAS, the City used a Pavement Management System to develop the SB 1 project list to ensure revenues are being used on the most high-priority and cost-effective projects that also meet the communities priorities for transportation investment; and WHEREAS, the funding from SB 1 will help the City maintain and rehabilitate several streets/roads, add active transportation infrastructure throughout the City this year and several years of similar projects into the future; and
WHEREAS, the 2023 California Statewide Local Streets and Roads Needs Assessment found that the City’s streets and roads are in an “at-risk/poor” condition and this revenue will help us increase the overall quality of our road system and over the next decade will bring our streets and roads into a “good/fair” condition; and
Attachment 1
WHEREAS, the SB 1 project list and overall investment in our local streets and roads infrastructure with a focus on basic maintenance and safety, investing in complete streets infrastructure, and using cuttingedge technology, materials and practices, will have significant positive co-benefits statewide.
NOW, THEREFORE IT IS HEREBY RESOLVED, ORDERED AND FOUND by the City Council of the City of El Paso de Robles, State of California, as follows:
1. The foregoing recitals are true and correct.
2. The following list of newly proposed projects will be funded in-part or solely with Fiscal Year 2025-26 Road Maintenance and Rehabilitation Account revenues:
Project Title: Zones 9B and 9C (Dallons and Tractor Area) Project Description: Repair and resurface the deteriorated roadways and pavement striping.
Project Location: Dallons Drive and Tractor Street, east of Golden Hill Road and north of Highway 46 East. Streets included in this area are:
Combine Street from Combine Circle to the east end
Combine Street from Tractor Street to Combine Circle
Danley Court from the north end to Wisteria Lane
Danley Court from Wisteria Lane to the south end
Germaine Way from the north end to 1,100 ft south
Oakwood Street from Tractor Street to Wallace Drive
Tractor Street from Golden Hill Road to Oakwood Street Tractor Street from Oakwood Street to Combine Street
Wallace Drive from Oakwood Street to the east end
Wisteria Lane from Golden Hill Road to the east end
Estimated Project Schedule: Start (06/25)– Completion (06/27) based on the component being funded with RMRA funds
Estimated Project Useful Life: 10 years
3. CEQA Compliance. This action is not a project under the California Environmental Quality Act pursuant to State Guidelines Section State CEQA Guidelines, §§ 15061, subd. (b)(3), and 15378, subd. (b)(2) and (b)(5).
APPROVED this 20th day of May, 2025, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Attachment 1
John R. Hamon, Jr., Mayor
ATTEST:
Melissa Boyer, City Clerk
Exhibit A: Map of Road Maintenance Repairs
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1 Exhibit A
Council Agenda Report
From: Ditas Esperanza, Capital Projects Engineer
Subject: Rejection of all bids, Authorization to readvertise for the construction of the South Vine Bridge Project, Adopt an organizational conflict-of-interest policy covering design-build projects.
CEQA Determination: The City finds that this action is not a project subject to CEQA because CEQA applies only to projects approved by a public agency and, alternatively, is exempt from CEQA as this action is not a project subject to CEQA because it has no potential to result in either a direct, or reasonably foreseeable indirect, physical change in the environment. (Public Resources Code § 20180(b)(5) and State CEQA Guidelines §§ 15270(a)State CEQA Guidelines, §§ 15060, subd. (b)(2)-(3), 15378.).
Date: May 20, 2025
Facts
1. The Paso Robles Gateway Annexation project is located northwest of the intersection of Highway 101 and Highway 46 West and includes the development of two hotels with 325 rooms, three commercial centers with approximately 75,600 square feet of space, a 30,000 square-foot conference center, 17 workforce residential units, and up to 80 resort residential units or a third hotel with 100 rooms.
2. In 2020, the City Council approved a Development Agreement (DA) with the developers of the Gateway Annexation project which requires the realignment of South Vine Street with Theatre Drive, which involves not only construction of a new road, but also construction of a bridge in order to connect to Highway 46 West.
3. In accordance with the DA, the City is responsible to construct the bridge and approximately half of the cost to realign the road within 7-years of annexation, which occurred on December 20, 2021; the Developer is responsible for their portion of the road and undergrounding their utilities.
4. In September 2024, after a lengthy process, an encroachment permit was issued by Caltrans allowing the City to move forward with construction of the project. The encroachment permit allows for the connection of the bridge to Caltrans’ right-of-way.
5. Staff advertised bids for the construction of the bridge, and at the bid opening on April 17, 2025, three (3) bids were received, with an engineer’s estimate of $15,100,000.
Papich Construction $14,750,000
Granite Construction $15,599,949
Clark Bros. Inc. $16,275,000
6. On April 18, 2025, Granite submitted a bid protest against Papich Construction’s bid stating that their bid was non-responsive and must be rejected.
7. Papich Construction provided a response with documentation that their bid was indeed responsive.
Options
1. Take no action;
2. Approve staff’s recommendation to reject all bids for the South Vine Bridge construction, authorize staff to readvertise for bids, and adopt an organizational conflict-of-interest policy covering designbuild projects; or
3. Provide alternative direction to staff.
Analysis and Conclusions
Following the opening of bids, on April 17, 2025 Granite Construction submitted a bid protest on April 18, 2025 alleging that the bid submitted by Papich Construction was nonresponsive because the bridge fabricator it listed in its bid was not prequalified as required by the contract documents. After careful review and consultation with the City Attorney’s office, staff recommends that the Council reject all bids received, authorize staff to rebid the project, and adopt an organizational conflict-of-interest policy covering design-build projects. In light of this recommendation, Granite Construction’s bid protest would be deemed moot.
The City is contemplating rebidding the project using the progressive design-build project delivery method, as allowed by Public Contract Code section 22185 et seq. To use progressive design-build, the City must adopt an organizational conflict-of-interest policy pursuant to Public Contract section 22185.2.
In summary, the organizational conflict-of-interest policy does not allow a potential proposer on a designbuild project to participate as design-build entity or to join a design build team if the potential proposer is, among other things, under contract by the City to manage or administer the design-build project or would violate any other applicable federal or state conflict-of-interest rules and regulations such as Government Code section 1090. This organizational conflict-of-interest policy would also apply to traditional design-build projects procured under Public Contract Code section 22160 et seq.
Fiscal Impact
There is no immediate fiscal impact to request that the City Council reject all bids received, readvertise for the project, and adopt an organizational conflict-of-interest policy covering design-build projects. This momentary delay in awarding construction will allow the City Council to review and approve the funding of the project.
CEQA
The City finds that approval of the rejection of all bids received and direction to staff to readvertise the project for the construction of the bridge is not a project subject to the California Environmental Quality Act (“CEQA”) because, under Public Resources Code section 20180(b)(5) and State CEQA Guidelines section 15270(a), CEQA applies only to projects approved by a public agency and, alternatively, is exempt from CEQA as this action has no potential to result in either a direct, or reasonably foreseeable indirect, physical change in the environment. (State CEQA Guidelines, §§ 15060, subd. (b)(2)-(3), 15378.).
Recommendation (Option 2)
Approve Resolution 25-XXX, for the approval of staff’s recommendation to reject all bids received, readvertise the project, and adopt an organizational conflict-of-interest policy covering design-build projects.
Attachments
1. Resolution 25-XXX
2. Organizational Conflict-of-Interest Policy Covering Design-Build Projects
Attachment 1
CC Resolution 25-XXX Page 1 of 2
RESOLUTION 25-XXX
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EL PASO DE ROBLES FOR THE REJECTION OF ALL
BIDS, AUTHORIZATION TO READVERTISE FOR THE CONSTRUCTION OF THE SOUTH VINE BRIDGE PROJECT, AND ADOPT AN ORGANIZATIONAL CONFLICT-OF-INTEREST POLICY COVERING DESIGNBUILD PROJECTS WHEREAS, the Paso Robles Gateway Annexation project is located northwest of the intersection of Highway 101 and Highway 46 West and includes the development of two hotels with 325 rooms, three commercial centers with approximately 75,600 square feet of space, a 30,000 square-foot conference center, 17 workforce residential units, and up to 80 resort residential units or a third hotel with 100 rooms. In 2020, the City Council approved a Development Agreement (DA) with the developers of the Gateway Annexation project which requires the realignment of South Vine Street with Theatre Drive, which involves not only construction of a new road, but also construction of a bridge in order to connect to Highway 46 West; and
WHEREAS, in accordance with the DA, the City is responsible to construct the bridge and approximately half of the cost to realign the road within 7-years of annexation, which occurred on December 20, 2021; the Developer is responsible for their portion of the road and undergrounding their utilities; and WHEREAS, in September 2024, after a lengthy process, an encroachment permit was issued by Caltrans allowing the City to move forward with construction of the project. The encroachment permit allows for the connection of the bridge to Caltrans’ right-of-way; and WHEREAS, at the bid opening on April 17, 2025, three bids were received ranging from $14,750,000 to $16,275,000. The engineer’s estimate for the project was $15,100,000; and WHEREAS, on April 18, 2025, Granite submitted a bid protest against Papich Construction’s bid stating that their bid was non-responsive and must be rejected. Papich Construction provided a response with documentation that their bid was indeed responsive.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF EL PASO DE ROBLES DOES HEREBY RESOLVE AS FOLLOWS:
Section 1. All of the above recitals are true and correct and incorporated herein by reference.
Section 2. Approve staff’s recommendation to reject all bids for the South Vine Bridge construction, authorize staff to readvertise for bids, and adopt an organizational conflict-of-interest policy covering design-build projects.
Section 3. Following the opening of bids, on April 17, 2025 Granite Construction submitted a bid protest on April 18, 2025 alleging that the bid submitted by Papich Construction was nonresponsive because the bridge fabricator it listed in its bid was not prequalified as required by the contract documents. After careful review and consultation with the City Attorney’s office, staff recommends that the Council reject all bids received, authorize staff to rebid the project, and adopt an organizational conflict-of-interest policy covering design-build projects. In light of this recommendation, Granite Construction’s bid protest would be deemed moot.
Attachment 1
CC Resolution 25-XXX Page 2 of 2
Section 4. The City finds that approval of the rejection of all bids received, direction to staff to readvertise the project for the construction of the bridge, and adopt an organizational conflict-ofinterest policy covering design-build projects is not a project subject to the California Environmental Quality Act (“CEQA”) because, under Public Resources Code section 20180(b)(5) and State CEQA Guidelines section 15270(a), CEQA applies only to projects approved by a public agency and, alternatively, is exempt from CEQA as this action has no potential to result in either a direct, or reasonably foreseeable indirect, physical change in the environment. (State CEQA Guidelines, §§ 15060, subd. (b)(2)-(3), 15378.).
APPROVED this 20th day of May, 2025, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
John R. Hamon, Jr., Mayor
ATTEST:
Melissa Boyer, City Clerk
Attachment 2
CITY OF EL PASO DE ROBLES
ORGANIZATIONAL CONFLICT-OF-INTEREST POLICY COVERING
DESIGN-BUILD PROJECTS
Purpose
The purpose of this policy is to establish guidelines, as required under California Public Contract Code sections 22162(c) and 22185.2, for a standard organizational conflict-of-interest policy, consistent with applicable law, regarding the ability of consultants or contractors (collectively, “Proposer”) to perform work for the City of El Paso de Robles’s (“City”) relating to potential progressive design-build or design-build projects (together, a “Design-Build Project”).
Policy
A potential Proposer will not be allowed to participate as a design-build entity or to join a designbuild team if, without limitation, any of the following is true:
Proposer is under contract with the City to manage or administer the Design-Build Project. Proposer is under contract with any other entity or stakeholder to perform oversight of the design-build team for the City on the Design-Build Project. Proposer has performed work on a previous contract with the City that expressly excludes them from participating as a design-build entity or joining a design-build team on the Design-Build Project.
Proposer would violate Government Code section 1090, including, but not limited to, Government Code section 1097.6.
Proposer would violate any other applicable federal or state conflict-of-interest rules and regulations.
Proposer’s Obligations
Proposers shall make a full written disclosure to the City of the facts and circumstances regarding an organizational conflict-of-interest or a potential organizational conflict-of-interest and shall have a continuing obligation to do so until they are no longer Proposers.
Proposers shall disclose in the response documents to a request for qualifications or request for proposals for a Design-Build Project, all of the work previously performed in relation to the Design-Build Project.
Proposers shall conform to applicable federal and state conflict-of-interest rules and regulations including, without limitation, the California Political Reform Act, California Government Code Section 1090, the federal Copeland “Anti-Kickback” Act and federal conflict-of-interest rules set forth in the federal funding agency’s administrative grant and cooperative agreement
Attachment 2
regulations. Federal conflict-of-interest rules and regulations shall only apply where the DesignBuild Project receives federal funding.
Conflict-of-Interest Issues
Resolution of a conflict-of-interest issue is ultimately at the sole discretion of City. If a Proposer determines that a conflict-of-interest or potential conflict-of-interest exists, it must disclose the conflict or potential conflict-of-interest to the City. The disclosure may or may not disqualify a Proposer from being awarded a contract. The Proposer shall propose measures to avoid, neutralize, or mitigate all conflicts or potential conflicts. City, in its sole discretion, shall determine whether the proposed measures are sufficient to overcome the conflict or potential conflict and whether the Proposer may continue with the procurement process. City has the right to terminate or amend a resulting design-build project contract if the successful Proposer failed to disclose a conflict or potential conflict that it knew or should have known about, or if the Proposer provided information in its disclosure that is false or misleading.
The successful Proposer to whom a contract is awarded has an ongoing obligation to monitor and disclose its conflicts or potential conflicts-of-interest. City has a right to ongoing enforcement of this policy. If an organizational conflict-of-interest is discovered after award, the Proposer will make an immediate and full written disclosure to the City that includes a description of the action that the Proposer has taken or proposes to take to avoid or mitigate such conflicts. If an organizational conflict-of-interest is determined to exist and the Proposer was aware of an organizational conflict-of-interest prior to award of the contract and did not disclose the conflictof-interest, City may terminate the contract with the Proposer for material breach. If the Proposer is terminated, City assumes no obligations, responsibilities and liabilities to reimburse all or part of the costs incurred or alleged to have been incurred by the Proposer.
This policy shall be incorporated by reference into and included as part of all City design build project requests for qualifications, requests for proposals, and all City design-build contracts.
This policy shall not constitute a limitation on the obligations of the Proposer in relation to any organizational conflict-of-interest.
Council Agenda Report
From: Paul Patti, Battalion Chief/Fire Marshal
Subject: Introduce for First Reading by Title Only an Amendment to the El Paso de Robles Municipal Code Section 16.04.010, Fire Hazard Severity Zones within the City of El Paso de Roble Local Response Area, and approval of Fire Hazard Severity Zone Local Response CEQA Determination: The City finds that this action is not a project under the California Environmental Quality Act pursuant to State Guidelines Section State CEQA Guidelines, §§ 15060, subd. (c)(2)-(3), 15378.
Date: May 20, 2025
Facts
1. The Office of the State Fire Marshal's Community Wildfire Preparedness and Mitigation Division collaborates with federal, state, and local agencies, tribes, non-profit entities, and stakeholders to prepare California communities against wildfires. CAL FIRE develops strategies, conducts hazard inspections, and provides education and grants for wildfire prevention efforts, fostering prepared and resilient communities.
2. The State Fire Marshal requires local agencies to adopt all identified Fire Hazard Severity Zone (FHSZ) classes in the Local Response Area (LRA) by ordinance.
3. The FHSZ maps are developed using a science-based and field-tested model that assigns a hazard score based on the factors that influence fire likelihood and fire behavior. Many factors are considered such as fire history, existing and potential fuel (natural vegetation), predicted flame length, blowing embers, terrain, and typical fire weather for the area. There are three levels of hazard in the State Responsibility Areas: moderate, high, and very high.
4. On March 10, 2025, the State Fire Marshal issued the FHSZ Map for the City’s LRA, identifying a combination of moderate and high FHSZ’s within the City’s boundaries.
5. Government Code section 51179(b)(3) prohibits a local agency from decreasing the level of fire hazard severity zone as identified by the State Fire Marshal for any area within the jurisdiction of the local agency.
6. Government Code section 51179(a) requires a local agency to adopt by ordinance, moderate, high, and very high FHSZ’s in its jurisdiction within 120 days of receiving recommendations from the State Fire Marshal pursuant to Government Code section 51178.
7. Government Code section 51179(c) requires, within thirty (30) days of adopting a local ordinance designating fire hazard severity zones, a local agency to transmit a copy of the ordinance and a map depicting the adopted zones within the local agency to the State Board of Forestry and Fire Protection Board.
8. On March 31, 2025, a public forum was held to navigate the FHSZ LRA Map process for the residents of El Paso de Robles and make the information available for public review and comment.
Options
1. Take no action.
2. Introduce and approve first reading by Title only, Ordinance XXXX Amending Chapter 16.04 of the El Paso de Robles Municipal Code and adopting the Exhibit A amendments to Chapter 16 of the PRMC and Fire Hazard Severity Zone Local Responsibility Area map for the City of El Paso de Robles listed in Exhibit B.
3. Amend or modify the Ordinance, as submitted.
4. Provide alternative direction to staff.
Conclusion and Analysis
The proposed amendment to Paso Robles Municipal Code Section 16.04.010 involves the incorporation of updated fire hazard mapping by the California Department of Forestry and Fire Protection (CAL FIRE), specifically the adoption of the FHSZ map for LRAs. This action is in response to state mandates requiring cities to adopt the most current FHSZ designations to enhance fire safety planning, building code enforcement, and community risk mitigation.
The FHSZ LRA map classifies areas within city limits by their relative risk of wildfire, categorizing them into Moderate, High, or Very High FHSZs. These classifications are based on topography, vegetation, climate patterns, and fire history. Adoption of the FHSZ map ensures that development standards and building regulations, particularly those affecting ignition-resistant construction and defensible space, are aligned with CAL FIRE’s latest data and projections.
This amendment is administrative in nature and does not impose new land use restrictions. However, properties within designated zones may become subject to specific Building Code requirements (e.g., Chapter 7A of the California Building Code) and vegetation management standards in accordance with state fire prevention statutes. This update supports the City’s ongoing efforts to improve wildfire resilience, comply with state law, and protect life, property, and natural resources.
The City conducted public outreach consistent with statutory noticing requirements, and property owners in newly designated or reclassified zones were informed of the potential implications.
Adopting the updated FHSZ LRA map and amending Section 16.04.010 of the Municipal Code positions Paso Robles to comply with state wildfire mitigation policies and ensures that development standards reflect the latest risk assessments from CAL FIRE. This action enhances community safety, promotes responsible land use, and aligns the City with California’s broader climate resilience and hazard mitigation goals. Staff recommends that the City Council approve the proposed ordinance amendment and formally adopt the updated FHSZ LRA map. Staff is further directed to post a notice at the office of the county recorder, county assessor, and county planning agency identifying the location of the map provided by the State Fire Marshal as required under Government Code section 51179(g).
Fiscal Impact
None.
CEQA
Staff recommends that the City Council find that the proposed actions are not a project under the California Environmental Quality Act pursuant to State Guidelines Section State CEQA Guidelines, §§ 15060, subd. (c)(2)-(3), 15378 because such actions will not result in a direct or reasonably foreseeable indirect physical change in the environment and such actions constitute an organization or administrative activity that will not result in direct or indirect physical changes in the environment, as it involves the
designation of Moderate, High and Very High Fire Hazard Severity Zones in the Local Responsibility Areas as recommended by the Office of the State Fire Marshal. Accordingly. Therefore, the proposed actions are not a project subject to CEQA.
Recommendation
Introduce and approve first reading by Title only, Ordinance XXXX Amending Chapter 16.04 of the El Paso de Robles Municipal Code and adopting the Exhibit A amendments to Chapter 16 of the PRMC and Fire Hazard Severity Zone Local Responsibility Area map for the City of El Paso de Robles listed in Exhibit B and direct staff to take an additional actions necessary in furtherance of this action.
Attachments
1. Ordinance XXXX - Section 16.04.010 – Local Responsibility Area Fire Hazard Severity Zone a. Exhibit A – Chapter 16.04 Ordinance Amendment
b. Exhibit B – Local Responsibility Area Fire Hazard Severity Zone Map
Attachment 1
ORDINANCE NO. XXXX N.S.
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF EL PASO DE ROBLES AMENDING SECTION 16.04.010 OF THE MUNICIPAL CODE OF THE CITY OF EL PASO DE
ROBLES DESIGNATING FIRE HAZARD SEVERITY ZONES WITHIN THE CITY OF EL PASO DE
ROBLES LOCAL RESPONSE AREA
WHEREAS, Government Code § 51178 mandates that the State Fire Marshal identify moderate, high, and very high Fire Hazard Severity Zones based on consistent statewide criteria and the expected severity of fire hazards; and
WHEREAS, Government Code § 51179 requires the State Fire Marshal to make recommendations to “local agencies,” as defined per Government Code § 51177(e), for their designation and adoption by ordinance; and
WHEREAS, Senate Bill 63 (Stern, 2021) requires the adoption of all three Fire Hazard Severity Zone classes in the LRA; and
WHEREAS, on March 10, 2025, the State Fire Marshal issued a Fire Hazard Severity Zone Map for the City of El Paso de Robles LRA, identifying a combination of Moderate and High Hazard Severity Zones within the City’s boundaries; and
WHEREAS, Assembly Bill 211 prohibits a local agency from decreasing the level of fire hazard severity zone as identified by the State Fire Marshal for any area within the jurisdiction of the local agency, as provided; and
WHEREAS, Government Code § 51179 requires a local agency to adopt by ordinance, moderate, high, and very high fire hazard severity zones in its jurisdiction within 120 days of receiving “recommendations” from the State Fire Marshal pursuant to Section 51178; and WHEREAS, 14 CCR § 1280.02 (California Code of Regulations) and Government Code § 51179(c) requires within thirty (30) days of adopting a local ordinance designating fire hazard severity zones, a local agency shall transmit a copy of the ordinance and a map depicting the adopted zones within the local agency to the State Board of Forestry and Fire Protection.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF EL PASO DE ROBLES DOES HEREBY ORDAIN AS FOLLOWS:
Section 1. Recitals. The City Council hereby finds that the foregoing recitals are true and correct and are incorporated herein as substantive findings of this Ordinance.
Section 2. Municipal Code Amendment. Section 16.04.010 (Zones established) of the El Paso de Robles Municipal Code is hereby amended to read in its entirety as follows:
SECTION 16.04.010 – LOCAL RESPONSIBILITY AREA FIRE HAZARD SEVERITY ZONE That the entire incorporated area of the city of El Paso de Robles is declared to be a Local Responsibility Area (LRA) for Fire Hazard Severity Zones (FHSZ), and said LRA shall be known and
Attachment 1
designated as Unrated, Moderate, High, and Very High FHSZ’s. FHSZ’s within the city of El Paso Robles are identified on the city website under Fire and Emergency Services "Local Responsibility Area Fire Hazard Severity Zone Map," dated March 10, 2025. LRA Fire Hazard Severity Zone Map | Paso Robles, CA. This map is adopted for the application of the regulations included in the most recent adopted version of the California Fire Code, and California Building Code.
Section 3. Ordains. The City Council hereby designates the Fire Hazard Severity Zones and adopts Exhibit A as recommended by the California Department of Forestry and Fire Protection pursuant to Government Code Section 51178. The map, approved by the City is hereby incorporated by reference, and entitled “LRA Fire Hazard Severity Zones,” dated March 10, 2025.
The official map is also located electronically on the following website:
https://calfire.app.box.com/s/wahuw9ny7cgn89xpx h7092ur50r1pwvj/file/1798590930111.
Section 4. CEQA. The City Council finds that the proposed actions are not a project under the California Environmental Quality Act pursuant to State Guidelines Section State CEQA Guidelines, §§ 15060, subd. (c)(2)-(3), 15378 because such actions will not result in a direct or reasonably foreseeable indirect physical change in the environment and such actions constitute an organization or administrative activity that will not result in direct or indirect physical changes in the environment, as it involves the designation of Moderate, High and Very High Fire Hazard Severity Zones in the Local Responsibility Areas as recommended by the Office of the State Fire Marshal. Therefore, the proposed actions are not a project subject to CEQA.
Section 5. Severability. If any section, subsection, sentence, clause, phrase, or portion of this ordinance is for any reason held invalid or unconstitutional, such invalidity or unconstitutionality shall not affect the validity of the remaining portions of this Ordinance, which can be given effect without the invalid provision or application, and to this end, the provisions of this Ordinance are severable. The City Council of El Paso de Robles hereby declares that it would have adopted this Ordinance and each section, sentence, clause, or phrase thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid or unconstitutional.
Section 6. Effective Date. The City Fire Marshal shall submit within thirty (30) days of adopting a local ordinance designating fire hazard severity zones, a copy of the ordinance and a map depicting the adopted zones within the local agency to the Board of Forestry and Fire Protection Board. This Ordinance shall be in full force and effect 30 days after its passage and adoption as provided by Government Code section 36397.
Section 7. Publication. The City Clerk shall certify to the passage of this Ordinance by the City Council of the City of El Paso de Robles, California, and cause the Ordinance to be published once within 15 days after passage in a newspaper of general circulation published and circulated in the City in accordance with Government Code section 36933.
INTRODUCED at a regular meeting of the City Council held on May 20, 2025, for first reading by the City Council of the City of El Paso de Robles, and adopted on the third day of June, 2025, by the following vote:
AYES:
NOES:
Attachment 1
ABSENT:
ABSTAIN:
John R. Hamon, Jr., Mayor
ATTEST:
Melissa Boyer, City Clerk
Exhibit A
Chapter 16.04 - FIRE LIMITS
16.04.010 - Local Responsibility Area Fire Hazard Severity Zones Zones established.
That the entire incorporated area of the city of El Paso de Robles is declared to be a Local Responsibility Area (LRA) for Fire Hazard Severity Zones (FHSZ), and is established as a fire district, and said LRA shall be known and designated as Unrated, Moderate, High, and Very High FHSZ’s. fire district shall be known and designated as Fire Zones 1, 2, and 3, and each such zone shall include such territory or portions of said city as illustrated, outlined and designated on a certain map on file in the office of the city clerk of the city of El Paso de Robles, being marked and designated as "Map No. 7 of Fire Zones of the City of El Paso de Robles," dated September 30, 1976, FHSZ’s within the city of El Paso Robles are identified on the city website under Fire and Emergency Services "Local Responsibility Area Fire Hazard Severity Zone Map," dated March 10, 2025. LRA Fire Hazard Severity Zone Map | Paso Robles, CA. This map which is adopted as the fire zoning map of the city of El Paso de Robles for the application of the regulations included in the most recent adopted version of the California Fire Code, and the California Building Code."Uniform Building Code, 1976 Edition, Published by the International Conference of Building Officials." (Ord. 398 N.S. § 4, 1976)
CHAPTER 16.04.010 – LOCAL RESPONSIBILITY AREA FIRE HAZARD SEVERITY ZONE That the enƟre incorporated area of the city of El Paso de Robles is declared to be a Local Responsibility Area (LRA) for Fire Hazard Severity Zones (FHSZ), and said LRA shall be known and designated as Unrated, Moderate, High, and Very High FHSZ’s. FHSZ’s within the city of El Paso Robles are idenƟfied on the city website under Fire and Emergency Services "Local Responsibility Area Fire Hazard Severity Zone Map," dated March 10, 2025. LRA Fire Hazard Severity Zone Map | Paso Robles, CA. This map is adopted for the applicaƟon of the regulaƟons included in the most recent adopted version of the California Fire Code, and California Building Code.
and other relevant factors including areas where winds
have been identified by the Office of the State Fire Marshal as a major cause of wildfire spread.
statewide criteria and based on the severity of fire hazard that is expected to prevail in those areas. Moderate, high, and very high fire hazard severity zones shall be based on fuel loading, slope, fire weather, Government Code section 51178 requires the State Fire
Marshal to identify areas in the state as moderate, high, and very high fire hazard severity zones based on consistent Unzoned LRA
Incorporated City
Projection: NAD 83 California Teale Albers
Scale: 1:68,000 at 11" x 17"
Km 012345
Mi 0123
Very High High Moderate
High Moderate
Fire Hazard Severity Zones (FHSZ) in Local Responsibility Area (LRA), as Identified by the State Fire Marshal
Paso Robles
101
46 UNINCORPORATED
SAN LUIS
OBISPO CO.
0DUFK, 2025
As Identified by the
State Fire Marshal Local Responsibility Area
Fire Hazard Severity Zones
CITY OF PASO ROBLES – SAN LUIS OBISPO COUNTY
Fire Hazard Severity Zones in State Responsibility
Area (SRA), Effective April 1, 2024
Exhibit B
Council Agenda Report
From: Mark Scandalis, Airport Manager
Subject: Approval of the Implementation of Phase II of the Paso Robles Municipal Airport Security Plan and Authorize Transfer of Funds from Airport Reserves to Airport Working Budget for the Implementation
CEQA Determination: The City finds that this action is exempt from the California Environmental Quality Act (“CEQA”) under Class 1 exemption ( State CEQA Guidelines § 15301).
Date: May 20, 2025
Facts
1. In 2023, City Council approved a contract with Aviation Management Consulting Group (AMCG) to conduct an assessment of the Paso Robles Municipal Airport.
2. On June 9, 2023, AMGC presented their findings to the Airport Commission and an Ad Hoc Committee was formed to prioritize the assessment recommendations.
3. On January 16, 2024, the Airport Assessment Ad Hoc Committee recommendations were presented to and approved unanimously by City Council.
4. Addressing airfield security improvements was a high priority recommendation.
5. Over the course of two days in March 2024, a security consulting firm, Lowery and Associates, performed a physical security assessment of the Paso Robles Airport.
6. On October 24, 2024, the results of the physical security assessment were presented to the Airport Commission and an Ad Hoc Committee of the Airport Commission was formed to prioritize the security recommendations.
7. The Security Ad Hoc Committee met three times to discuss the Lowery and Associates security study recommendations and develop a security plan.
8. On March 24, 2025, the Ad Hoc security plan recommendations were presented to the full Airport Commission and the Commission voted unanimously to accept the findings.
9. In addition to the unanimous vote to accept the findings, the Commission elected to form an Ad Hoc Committee to provide support to the efforts to relocate the North County Cloud Clippers (NCCC) model airplane club.
Options
1. Take no action; or
2. Accept the security recommendations as developed by the Airport Commission Security Ad Hoc Committee, approve the implementation of Phase II of the Paso Robles Municipal Airport Security Plan and authorize the transfer of $170,000 from Airport Reserves to the Airport working budget to implement Phase II of the security plan; or
3. Provide alternative direction to staff.
Analysis and Conclusions
Airport security plays a crucial role in maintaining the safety and efficiency of national air travel. Each Airport in the National Plan of Integrated Airport System (NIPAS) is expected to play their part in providing a safe and efficient Airport system within the United States of America. The last major security upgrade at the Paso Robles Municipal Airport (PRB) was in the early 2000’s with the construction of the new Airport Terminal. While commercial service Airports are subject to stricter regulation than general aviation (GA) airports like Paso Robles, GA airports are still expected to continually work towards a safer, more secure NIPIAS system.
As the aviation industry changes, it is necessary to keep the Airport up to date with the latest FAA regulations, guidance, and best practices. To further this goal of a safer and more secure Airport the City hired a physical security firm, Lowery and Associates, to evaluate PRB’s physical security measures.
Lowery and Associates conducted an onsite assessment of Airport security, meeting with staff, tenant groups, and Airport stakeholders. The executive summary of the Lowery Associates report can be found in Attachment 2. Lowery and Associated presented their findings to the Airport Commission on October 24, 2024, and an Ad Hoc of the Airport Commission was formed to prioritize the findings.
Attachment 3 details of the Airport Commission Ad Hoc security plan recommendations. Phased recommendations include:
1. Phase I (completed)
a. Airport staff work to secure all existing gate access. b. Standardize all lock sets at all gates.
c. Plan for a future project to fence the entirety of the Airport to ensure readiness if grant monies become available.
2. Phase II (projected implementation in FY 2025-26)
a. Implement various physical security upgrades including new fence sections and electronic gate access to the west side, south side, and east side of the Airport. b. Install Knox boxes at all electronic gate access locations to aid emergency services with access to the restricted Airport operations areas in case of emergency. c. Due to safety of flight and aircraft operations, recommend the City provide notice to the North County Cloud Clippers (NCCC) remote controlled airplane club that the City can no longer host the club on Airport property beyond the current letter of authorization which expires October 23, 2025 (Attachment 4) with City staff working collaboratively with the Club over the coming months to identify an alternative location outside the airspace.
d. Work with Cal Poly 5G lab and the City IT department to evaluate internet connectivity across the entire Airport and cyber security compliance with current FAA Airport and future Spaceport regulations.
e. Work with Airport tenants to secure existing lease site boundaries.
3. Phase III (planned for budget years FY 2026-27 and 2027-28) a. Budget for internet connectivity upgrades for the Airport to improve security (e.g., virtual fence and camera options).
b. Budget for physical security upgrades to replace existing barbed wire fencing on west side, and south sides of the Airport.
4. Phase IV (date of implementation to be determined)
a. Plan for full key card access to the restricted Airport Operating Area. b. Establish and update existing policies and procedures for security and safety. c. Hire an Airport Operations Manager to manage the security system.
The Airport Commission voted unanimously to accept the recommended Security Plan. Part of the security plan included discontinuation of the City’s support of the North County Cloud Clippers (NCCC) remote controlled model airplane field on Airport property. The NCCC club operates on the Airport under an FAA certificate of authorization/waiver. The current 2-year authorization/waiver is set to expire on October 23, 2025. Due to safety of flight and security concerns, both AMCG in their Airport Assessment and Lowery Associates in their Security Assessment identified the NCCC remote-controlled airplane field as a risk and liability to the City and recommended the remote-controlled airplane field be relocated off Airport property and outside the Airport’s traffic pattern. At the March 24, 2025 meeting, the Commission unanimously agreed with the consultants’ findings that the remote-controlled airplane fields operation was a significant liability for the City, Airport, and flying public. The Commission agreed the RC field should no longer be located on Airport property, and that the current FAA certificate of authorization should be allowed to expire naturally on October 23, 2025.
In addition to the recommendation to no longer support continued NCCC operations at the Airport, the Commission recognized the need to assist the NCCC club in finding an alternative location in the North County. The Airport Commission elected to form an Ad Hoc committee for the relocation effort. Over the coming months the Ad Hoc will meet periodically to work on the goal of helping the club find an alternative location in the North County. The Commission acknowledged that the Ad Hoc’s efforts to find a new RC field may not be successful and that the Club may have to relocate to one of the existing RC fields in the area, the closest fields being San Luis Obispo and Lake San Antonio. The Ad Hoc will be working with the City and reporting their progress at upcoming Airport Commission meetings.
Fiscal Impact
The estimated cost of the security plan recommendations are as follows:
Phase I: Completed using previously allocated FY 2024-25 general Airport maintenance and operating budget.
Phase II: $170,000
Phase III-IV: Cost to be determined at time of implementation and returned to City Council for consideration through the normal budget making process.
Phase II is recommended to be implemented now by allocating funds from the Airport Reserve Balance.
CEQA
The City finds this action is categorically exempt from the California Environmental Quality Act (“CEQA”) under Class 1 exemption, which applies to the operation, facilities, maintenance, permitting, leasing, licensing, or minor alteration of existing structures, facilities, mechanical equipment, or topographical features where the project involves negligible or no expansion of existing or former use ( State CEQA Guidelines § 15301).
Recommendation (Option 2)
Accept the security recommendations as developed by the Airport Commission Security Ad Hoc Committee, approve the implementation of Phase II of the Paso Robles Municipal Airport Security Plan, and authorize the transfer of $170,000 from Airport Reserves to the Airport working budget to implement Phase II of the security plan.
Attachments
1. Resolution 25-XXX – Airport Security Plan
2. Lowery Associates Physical Security Study Executive Summary
3. Airport Commission Security Ad Hoc Security Plan Recommendations
4. NCCC FAA Waiver of Authorization, Expiration date 10/23/2025
Attachment 1
RESOLUTION 25-XXX
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EL PASO DE ROBLES
APPROVING THE IMPLEMENTATION OF PHASE II OF THE PASO ROBLES MUNICIPAL AIRPORT
SECURITY PLAN AND AUTHORIZING TRANSFER OF FUNDS FROM AIRPORT RESERVES TO AIRPORT
WORKING BUDGET FOR THE IMPLEMENTATION
WHEREAS, in February 2023 the City Council discussed and adopted the Airport Assessment findings prepared by AMCG consultants which included a recommendation to implement airfield security improvements; and
WHEREAS, In March 2024 Lowery and Associates conducted a physical security assessment to evaluate airfield security at the Paso Robles Airport; and
WHEREAS, In October 2024 an Ad Hoc committee of the Airport Commission was formed to prioritize the physical security assessments; and
WHEREAS, In March 2025 the Airport Commission voted unanimously to accept the findings of the physical security assessment and Ad Hoc recommendations, which included $170,000 in recommended security upgrades in the near term and a plan to continue improving security over the coming budget years.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF EL PASO DE ROBLES DOES HEREBY RESOLVE AS FOLLOWS:
Section 1. All of the above recitals are true and correct and incorporated herein by reference.
Section 2. The City Council hereby accepts the security recommendations as developed by the Airport Commission Security Ad Hoc Committee and approves the implementation of Phase II of the Paso Robles Municipal Airport Security Plan.
Section 3. The City Council hereby authorizes transfers from the Airport Reserves to the Airport operating budget in the amount of $170,000 to cover security upgrades project costs.
Section 4. The City finds this action is categorically exempt from the California Environmental Quality Act (“CEQA”) under Class 1 exemption, which applies to the operation, facilities, maintenance, permitting, leasing, licensing, or minor alteration of existing structures, facilities, mechanical equipment, or topographical features where the project involves negligible or no expansion of existing or former use ( State CEQA Guidelines § 15301) APPROVED this 20th day of May, 2025, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Attachment 1
John R. Hamon, Jr., Mayor
ATTEST:
Melissa Boyer, City Clerk
Paso Robles
Municipal Airport
Physical Security
Assessment Report
May 20, 2024
Prepared By:
2140 Hall Johnson Rd, Suite 102-122,
Grapevine, Texas 76051
License: C19160
Attachment 2
City of Paso Robles – Paso Robles Municipal Airport Physical Security Assessment Report Lowery & Associates Security Consulting, LLC. Page | 2
TABLE OF CONTENTS
Subject Page No.
INTRODUCTION 3
EXECUTIVE SUMMARY 5
RISK AND THREAT ASSESSMENT 8
GENERAL INFORMATION 10
FINDINGS AND RECOMMENDATIONS 12
General Site/Building Security 12
Administrative Security 23
Security Technology and Controls 26
Physical Security Operations & Miscellaneous 36
ASSESSMENT PHOTOGRAPHS 37
The following appendices are included as separate documents, but are a part of this assessment report:
Appendix 1 – Security Perimeter Map 1 (Airport AOA Boundary) Appendix 2 – Security Perimeter Map 2 (West Side AOA Boundary) Appendix 3 – Security Perimeter Map 3 (South Side AOA Boundary) Appendix 4 – Paso Robles Airport Security Recommendation Prioritization List Attachment 2
City of Paso Robles – Paso Robles Municipal Airport Physical Security Assessment Report Lowery & Associates Security Consulting, LLC. Page | 3
INTRODUCTION
Lowery and Associates Security Consulting, LLC was retained by the City of Paso Robles (COPR) to conduct a physical security assessment (PSA) of its Municipal Airport location in Paso Robles, California. The PSA provides an independent evaluation and analysis of existing risks, threats, vulnerabilities, and offers recommendations for specific security countermeasures and improvements. Goals for this project included:
• Create and provide a standardized set of “Tools” for performing Physical Security Assessments to provide for consistency in the inspection and evaluation of COPR facilities; • Provide experienced and trained security and law enforcement experts to perform the physical security assessment and prepare the deliverables for this project; • Establish a threat assessment methodology for COPR that will identify internal and external threats, identify critical assets, analyze vulnerabilities, assess and rank the level of security threat and risk for the COPR location;
• Perform an on-site, comprehensive assessment of the COPR facility with assessment team members to document existing conditions and operations and identify improvements needed to achieve or surpass industry best practices;
• Conduct independent security technology assessments for each location to document existing security systems & equipment, and their use, as well as power and communication infrastructure available to support such systems;
• Conduct a preliminary review of existing technology and infrastructure to support potential security systems for each location, including availability, capacity and layout of network communication and power infrastructure available to support such systems; and • Prepare a comprehensive assessment report that includes findings and prioritized recommendations with budget estimates for the location.
This PSA included the assessment, evaluation and formulation of recommendations related to the administrative, physical technology and operational security for the property. The assessment report describes findings and observations and includes prioritized recommendations that are easy to understand and are actionable. The following subject areas were reviewed during the assessment and have been addressed in the report:
General Site/Building Security
The physical security elements of the site and building were assessed. Specifically, the following areas were reviewed and assessed:
• Site Perimeter
• Building Exteriors
• Building Interiors
• Facility Parking
• Facility Lighting
• Facility Signage
• Historical Security Incidents & Activity
Attachment 2
City of Paso Robles – Paso Robles Municipal Airport Physical Security Assessment Report Lowery & Associates Security Consulting, LLC. Page | 4
Administrative Security
The development, management, administration, and maintenance of the facility’s overall security program was reviewed and evaluated. This portion of the assessment was focused on management roles, responsibilities for security and the development and implementation of security policies, plans, and procedures. Specifically, the following areas were reviewed and assessed:
• Security Roles & Responsibilities
• Security Funding & Support
• Security Policies, Programs & Procedures
• Employment Termination Practices
• Employee Pre-Employment Screening
• Security Education & Awareness
• Security Information / Incident Reporting
• Information Protection Practices
Security Technology & Controls
Team members reviewed current system operations and evaluated how existing security equipment is being used to address current security program requirements, including noting the lack of such systems. Physical security systems and controls evaluated included:
• Vehicle Access, Traffic and Parking Control
• Employee, Customer, Contractor, and Vendor Access
• Access Control & Badge/Identification Systems
• Video Surveillance and Recording Systems
• Intrusion Detection & Hold-up/Burglar Alarm Systems
• Security Communications Systems
• Internal Property/Product Controls
• Shipping, Receiving & Storage Operations
• Lock and Key Control
• Physical Access to Computer Network Resources
• Protection of Building Utilities & Air Intakes
• Security technology vendor services & preventative maintenance Physical Security Operations
The operations, or the need thereof, of security officer staff was reviewed and evaluated. Specifically, the following areas were reviewed and assessed:
• Security Staffing and Operations
• Security Staff Scheduling and Task Assignment
• Security Staff Training
• Security Post Instructions & Documents
• Security Uniforms and Equipment
Attachment 2
City of Paso Robles – Paso Robles Municipal Airport Physical Security Assessment Report Lowery & Associates Security Consulting, LLC. Page | 5
EXECUTIVE SUMMARY
In March 2024, the City of Paso Robles (COPR) engaged Lowery and Associates Security Consulting, LLC to conduct an assessment of the existing state of physical security, security systems, and security operations provided and operated at the City’s Municipal Airport located in Paso Robles, CA. The outcome of this physical security assessment has resulted in identifying and defining specific improvements to site physical security elements, as well as improvements in administrative and operational security practices.
During the assessment, six (6) separate interviews were conducted with city staff, airport tenants and stakeholders for the site. These interviews revealed some common concerns, including:
• Many areas allowing uncontrolled access to the AOA;
• Outdated and inoperable vehicle and pedestrian gates, as well as locks; • No dedicated management and oversight over the security function at the site; • No established security policies, procedures, emergency response plans or guidance; • Lack of formal security education, awareness and training for employees and tenants; and • Little to no security presence at the airport to deter or respond to security incidents During the assessment, these areas of concern were assessed, along with numerous other topics, and recommendations were formulated, when warranted, to enhance and improve the safety and security of these prioritized areas of concern.
The findings of the Consultant Team revealed that security for the airport has been managed largely as an ad hoc or adjunct responsibility of the Airport Manager. An organized security program, with dedicated security leadership and direction, has not been instituted and maintained at the airport. There is a significant lack of barriers and controls to limit unauthorized access to the air operations area (AOA). In addition, the airport has not been equipped with electronic access control or video surveillance systems, which are included in FAA guidelines for general aviation (GA) airports and are standard best practices today for similar environments. It was apparent during the assessment that some security improvements are needed to address current risks and to comply with FAA guidelines and industry standards and best practices. The recommendations detailed within this report reflect improvements that can enhance the current security program for the airport.
In total, one-hundred-forty-six (146) recommendations have been made for specific security improvements.
Recommendations have been prioritized into three (3) categories (Critical, Important, and Desirable) to assist the City to prioritize, plan and budget for specific security improvements. Some of the most serious findings and recommendations generated from the assessment are detailed below:
• Uncontrolled AOA Access: Significant portions of the airport have little or no fencing or barriers to prevent unauthorized access to the airport property and directly to the AOA. In many areas of the airport, any delineation between landside and airside is not clear and no boundary exists to separate these operating areas. Much of the AOA boundary is under the control of various airport tenants, with many commercial tenants operating non-air operations within the AOA. Where fencing, vehicle gates, and pedestrian gates have been installed to limit access to the AOA, these elements fall short of FAA guidelines and best practices or are currently inoperable or unsecured. With a few exception areas, most of the fencing around the perimeter of the airport does not meet FAA guidelines and would not deter or prevent unauthorized access to the airport.
Attachment 2
City of Paso Robles – Paso Robles Municipal Airport Physical Security Assessment Report Lowery & Associates Security Consulting, LLC. Page | 6
Recommendation: We have made numerous recommendations for specific fence and gate improvements to establish control of the AOA and airport perimeter. As part of this assessment report, we have included “Security Perimeter Map” exhibits that illustrate recommendations for separating landside from airside operations in accordance with FAA guidelines and where to establish vehicle gate controls and pedestrian gate controls to limit unauthorized access to the AOA. These recommendations will actually lower the overall number of automated vehicle gate entrances, while improving the AOA boundary delineation between landside and airside operations. This effort will have the added benefit of positioning existing non-aeronautical, commercial tenant businesses, like the Treana Winery and Greater California Financial facilities, outside of the airside AOA. • Executive Security Leadership: There is no physical security management presence employed at the airport, or available to assist with security planning, preparedness, and response. No single senior management position has been designated as the responsible officer for security at the airport and all security matters must be absorbed by the current Airport Manager or by the Paso Robles Police Department. The lack of clear ownership of the physical security function could lead to a lack of appropriate focus and attention to security needs and issues, as well as a lack of clarity for City leadership during security, emergency, and crisis events.
Recommendation: We recommend firmly establishing the role and responsibility for oversight and management of security within the Airport Manager’s job description and provide resources for security subject matter expertise, guidance, and education. When the Assistant Airport Manager/Airport Operations Manager role is filled at the airport, make this position the leader for managing the site’s dayto-day physical security program and be responsible for administrative, physical, and operational security implementation and management, under the supervision of the Airport Manager. This individual should have, or endeavor to develop, executive physical security management experience and training. It would be expected that this individual would be the primary liaison with the police department and would engage with other City department heads and officials to carry out operational, administrative and physical security initiatives and programs.
• Site Security Systems: The Paso Robles Airport is not equipped with any usable security systems to control and document access to the AOA or to the terminal building after business hours, to provide recorded surveillance, or to trigger monitored alarms for break-ins or other unwanted activity. The lack of access controls and video surveillance for the airport falls significantly short of FAA guidelines and best practices for GA airports and is a major vulnerability for the City of Paso Robles.
Recommendation: We have included recommendations for the installation of modern electronic access control, alarm, and video surveillance systems throughout the airport terminal area and around the AOA boundary, especially the active airside areas on the west and south sides of the airport. In total we have recommended the installation of new electronic access controls for (12) automatic vehicle gates, (8) pedestrian gates, (6) terminal buildings doors, and (26) video surveillance cameras. In addition to the ability to manage and monitor these systems in the airport manager’s office area, we have recommended that these systems include the ability to be remotely monitored by Paso Robles Police Dispatchers located in the Public Safety Center after hours.
• Security Policies and Procedures: A comprehensive airport security plan, with specific security policies and security operating procedures has not been developed to establish the authority, responsibility and specific procedures and instructions for implementing and managing the facility’s overall security program. The lack of an airport master security plan falls short of FAA guidelines for GA airports.
Recommendation: We recommend engaging subject matter expertise and resources to develop a comprehensive airport master security plan for the facility, to include detailed security policies, operating Attachment 2
City of Paso Robles – Paso Robles Municipal Airport Physical Security Assessment Report Lowery & Associates Security Consulting, LLC. Page | 7
procedures and instructions. This set of documents shall serve to provide the guidance and direction necessary to properly implement and manage a sound security program for the airport. We also recommend developing detailed response plans for each type of foreseeable security incident, event or emergency.
By following and acting on the recommendations contained in this report, the City of Paso Robles will be set on a course to successfully define, develop and implement a suitable physical security program for the airport, helping to ensure the safety and protection of City employees, airport tenants, operators, assets and its citizens.
This Assessment Report should not be interpreted as an exhaustive study of all existing conditions, deficiencies, and/or code/standard compliance. The report represents the Consultant Team’s professional opinions, based on experience and observations, and do not imply any warranty by the Consulting Firm and/or the Consulting Team Members.
Attachment 2
Airport Commission Security Ad Hoc Security Plan
4/24/2025
Airport security plays a crucial role in maintaining the safety and efficiency of national air travel. Each Airport in the National Plan of Integrated Airport System (NIPAS) is expected to play their part in providing safe and efficient air travel within the United States of America.
With the continuous evolution of aviation, the challenges of safeguarding passengers, crew, and cargo have grown increasingly complex. Each year Paso Robles Airport continues to grow in complexity from its original 1940’s state. The Airport boundary consists of nearly 7 miles of fence line, the majority of which is original and is non-compliant with contemporary standards. The last major security project at Paso Robles Airport was completed with the construction of the Airport Terminal in the early 2000’s and new included fencing and electronic gate access’ mainly on the west side of the Airport around the Airport Terminal area.
As the aviation industry changes, so does the necessity to keep the Airport up to date with the newest FAA regulations, guidance, and best practices. As part of this effort, the Airport hired an industry leading security consultant, Lowery and Associates, to evaluate the physical security at the Airport. Lowery and Associates conducted an onsite assessment of airport security, meeting with staff, tenant groups, and airport stakeholders. Lowery and Associates presented their findings to the Airport Commission on October 24, 2024, and an Ad Hoc of the Airport Commission was formed to prioritize the findings. The Ad Hoc met multiple times to review the findings and develop a security plan for the Airport.
The intent of the Ad Hoc was to come up with a phased plan to address the findings of the security assessment that will improve safety and security at the Airport with a right sized approach consistent with the needs of our General Aviation Airport. The intent of this security plan is not to cut off access to Airport users but to prevent unauthorized access and reduce the Airports liability to potential mishaps. The Airport is committed to keeping the small-town welcoming nature of the Paso Robles Airport and will continue to provide access to visitors through guided tours, aviation open days, and working with industry groups to foster the next generation of aviators at the Paso Robles Airport.
CITY OF EL PASO DE ROBLES
“The Pass of the Oaks”
Attachment 3
Ad Hoc Members:
Sarah Gipple – Airport Commissioner
Marc Dart - Airport Commissioner
Bill Britton - Airport Commissioner
Mark Scandalis – Airport Manager
Phase I
Proposed Timing: Completed
• Airport staff secure all existing gates.
• Airport staff purchase a new lock set with a standard keyed lock for all gates. • Airport staff work to fix all gate actuators, recommend replacement budget for gate actuators (see phase II)
• Airport staff add Grant project to fence north and east added to CALTRANS 10-year Capital Improvement Plan.
Attachment 3
Phase II
Proposed timing: Short Term 2025-2026:
• ADS-B out for Tractor
• Knox Box for emergency services access at each electronic gate access • Recommend the City provide notice to North County Cloud Clippers (NCCC) that City can no longer host the club at the Airport beyond current FAA certificate of authorization which expires 10/23/2025. Between now and October 2025 work collaboratively with NCCC to help to try and find them a new location outside the Airport influence area.
i. Reasoning:
1. Safety of Aircraft operations and flight (currently authorized to fly within ~100’ of active runway).
2. Liability for the Airport and City as identified in AMCG Airport assessment and Lowery Associates Security Study.
3. FAA Part 107 drone regulations.
4. Concerns due to recent events at LA fires involving drones and full size aircraft.
5. Safety of hazardous rocket engine testing in the vicinity of the model airplane field.
6. Frequency management requirements for Spaceport Application and Aircraft operations.
7. Model airplanes flying low level over soon to be developed Erskin golf course property to which the City had no right to grant access. • Work with Cal Poly 5G lab and City IT department to evaluate internet connectivity pilot program for the Airport and cyber security compliance with current Airport and future Spaceport regulations, best practices, and requirements. Implement findings in subsequent budget years.
• Eastside physical security upgrades
i. Install two manual gates to close during hazardous operations on east side • Southside physical security upgrades
i. 6-foot fence at second wing way gate
a. ~150 linear feet fence
b. Replace existing gate with new electronic gate
• Westside physical security upgrades (some fence repairs to be done inhouse) i. Satellite Drive - electronic gate access
1. ~175 feet of fence
ii. Fence from Hamon to Coast Southwest
1. ~100 feet of fence
iii. Fence Coast Southwest to Tina Nelson building
1. ~325 feet of fence
iv. Plug various holes between hangars and existing gates
1. ~100 feet of fence
Attachment 3
Phase II: Airport Cost
1. ADS-B out for Tractor $6,000 In-house
2. Internet connectivity study --------- In-House
3. Internet pilot program $15,000 In-house
4. Knox box at each electronic gate access $8,000 In-house
5. Fence/Gate actuators repair budget $40,000 In-house
6. East Side $2,000 In-house
a. 2X Manual gates
__________________________________________________________________________________________
7. Westside
a. ~600’ of fence - (~$100/foot) $60,000 Contracted
b. 1 new electronic access gate at Satellite Drive $12,000 Contracted
8. Southside
a. ~150 linear feet of fence ($100/foot) $15,000 Contracted b. 1 new electronic access gate at 2nd Wind Way $12,000 Contracted Total $170,000
Inhouse budget $71,000
Contracted budget $99,000
Attachment 3
Phase II TENANT AREAS: (work with tenants to accomplish) Westside
v. Loyd’s Aviation (ongoing)
1. Reconfigure TXY delta gate east/west
a. At time of hangar construction or sooner
2. Fence hangar lease area site on north side~750 feet From Wing Way to Helicomm Avionics
a. ASAP
Southside
vi. Nunno Corp (on going)
1. Close existing gate at dry creek or provide alternative fencing to stop walk on airfield access from dry creek road (on going, relocation of gate to location interior of yard)
vii. Andros (ongoing)
1. Install gate at northwest lease boundary for aircraft access. ~50 linear feet with electronic gate
viii. City of PR - 2nd wind way (on going)
1. ~800 feet of fence
ix. Treana (In progress)
1. Close gates on boundary and install security fence around Wright Way from lease site to RV storage. ~210 linear feet of fence x. Saunders
1. Install security fence along southern lease boundary from existing building to Andros to the east. ~125 linear feet (at time of construction)
xi. Warbirds (ongoing)
1. Fence off northwest parking area. ~25’ of fence with manual gate
Attachment 3
Exhibits for Phase II
Westside
Attachment 3
Southside
Attachment 3
Eastside – (Spaceport hazordous operations area)
Attachment 3
Loyd’s Aviation
Yellow immediate temporary/permeate fence in place until hangar construction.
Green new gate at the time of hangar construction.
Attachment 3
Nunno Corp:
Attachment 3
Andros Engineering
Attachment 3
Second Wing Way Property -City of Paso Robles
Attachment 3
Treana Winery
Saunders
Attachment 3
Warbirds Museum
Yellow immediate, green planned for in Phase III.
Attachment 3
Phase III
Proposed Timing: Next budget cycles FY26-27/FY27-28
• Internet connectivity for entire Airport. This will open options for virtual fence and security camera upgrades as a possible solution for rural areas of Airport in lieu physical security fence until such time physical fence is needed. • Security camera upgrades at relevant gate accesses, internet access needed for cameras.
• Fence from TXY Delta to Dry Creek Road
i. ~2500 linear feet of fence
• Fence from Cemetery to Satellite Drive
i. ~1200 linear feet of fence
• Warbirds northern boundary along foxtrot with aircraft gate i. ~600 linear feet of fence
ii. Large Aircraft gate (~100 feet wide)
• RV storage to Warbirds and Warbirds to Water well
i. ~2500 linear feet of fence
Cost TBD during the next budget making process. In the event of budget short falls projects will be spread over the future budget years. In rural areas of the Airport evaluate alternative lower cost fencing like no climb deer/vineyard fence and virtual barriers.
Attachment 3
Exhibits for Phase III
TXY Delta to Dry Creek Road
Attachment 3
Cemetery to Satellite Drive
Attachment 3
Warbirds northern boundary along foxtrot with aircraft gate (green) Attachment 3
RV storage to Warbirds and Warbirds to Water well
Attachment 3
Phase IV
Proposed timing: Date TBD as necessary
• Full key card access for security gates.
• Establish/update existing policies and procedures for security and safety. • Hire Operations Manager to manage the security system, as recommended in the Airport Assessment which was accepted by City Council at the January 16, 2024 meeting.
Attachment 3
FAA Form 7711-1 Airspace Authorization
DEPARTMENT OF TRANSPORTATION
FEDERAL AVIATION ADMINISTRATION
CERTIFICATE OF WAIVER OR AUTHORIZATION
ISSUED TO
Recreational Flyer Section 44809
Responsible Person:
Email Address:
Phone Number:
This Airspace Authorization (AA) is issued for the operations specifically described hereinafter. No person shall conduct any operation pursuant to the authority of this AA except in accordance with the standard and special provisions contained in this AA, and such other requirements of the Federal Aviation Regulations not specifically waived. OPERATIONS AUTHORIZED
LIST OF WAIVED REGULATIONS BY SECTION AND TITLE N/A
STANDARD PROVISIONS
1. A copy of the application made for this AA shall be attached and become a part hereof.
2. This AA shall be presented for inspection upon the request of any authorized representative of the Federal Aviation Administration or of any State or municipal official charged with the duty of enforcing local laws or regulations.
3. The holder of this AA shall be responsible for the strict observance of the terms and provisions contained herein.
4. This AA is nontransferable.
NOTE - This AA constitutes a waiver of those Federal rules or regulations specifically referred to above.
It does not constitute a waiver of any State law or local ordinance.
SPECIAL PROVISIONS
Special provisions are inclusive and set forth on the follow pages.
This AA, 2023-CBO-WSA- -FIX, is effective from to
and is subject to cancellation at any time upon notice by the Administrator or his/her authorized representative.
FAA Western Service
FAA Form 7711-1 (7-74)
00188
North County Cloud Clippers, #853
Michael Peck
[email protected]
650-504-0001
4 00188
RICHARD S
FARNSWORTH II
Digitally signed by RICHARD S FARNSWORTH II Date: 2023.10.24 14:43:24 -07'00' For Adam Vetter Tactical Operations Manager
Chad Budreau
[email protected]
765-287-1256 x201
October 24, 2023 October 23, 2025
Attachment 4
FAA Form 7711-1 Airspace Authorization
2023-CBO-WSA-00188-FIX
CBO-FIX, July 24, 2023
SPECIAL PROVISIONS
PURPOSE: To establish responsibilities and procedures for use of North County Cloud Clippers Fixed Site operational area.
1. CONTACT INFORMATION:
a. Michael Peck is the person designated as responsible for the overall safety of Unmanned Aircraft System (UAS) operations under this AA. During UAS operations for on-site communication/recall, the Responsible Person must be continuously available for direct contact at 650-504-0001 by ZOA or designated representative. b. The Responsible Person listed on this AA must maintain a current list of pilots by name and the aircraft registration number(s) associated with the AA holder’s operation. This list must be presented for inspection upon request from the Administrator or an authorized representative.
2. SCHEDULE OF FLIGHT OPERATIONS:
a. Thirty (30) days from signature on page 1 of this AA, this AA cancels and replaces, in its entirety, the Letter of Agreement between ZOA, KPRB, and North County Cloud Clippers, #853 effective on August 15, 2022.
b. The operator must be aware of systems in the airport environment that produce High Intensity Radiated Fields (HIRF) and ensure that the Unmanned Aircraft (UA) is capable of operating within the HIRF level produced by those systems. Further, the operator must actively monitor the control link for any degradation or radiofrequency interference. When there is an indication that HIRF levels for the UA may be exceeded or that radiofrequency interference exists or may develop, the operator must immediately terminate the operation, report the event, and cease conducting operations at that location until the issues can be mitigated. c. This AA and the Special Provisions are in effect between sunrise and sunset local time. Night operations are not authorized.
d. No person may operate a UA in prohibited or restricted areas unless that person has permission from the using or controlling agency, as appropriate. FAA JO 7400.10 lists agencies scheduling Special Use Airspace (SUA).
e. This Authorization does not relieve the recreational flyer from the responsibility to check the airspace they are operating in and comply with all restrictions that may be present in accordance with Section 44809, such as restricted and Prohibited Airspace, Temporary Flight Restrictions, etc.
f. The recreational flyer must operate the aircraft in a manner that does not interfere with and gives way to any manned aircraft.
Attachment 4
FAA Form 7711-1 Airspace Authorization
2023-CBO-WSA-00188-FIX
CBO-FIX, July 24, 2023
g. The facility or designated representative may disapprove, terminate, restrict, or delay UAS flight operations covered by this AA at any time.
3. EMERGENCY/LOST LINK/LOST COMMUNICATIONS PROCEDURES:
a. If the UAS loses communications or loses its Global Positioning Signal, the UA must return to a pre-determined location within the operating area and land. Lost link procedures must not present an undue hazard to other aircraft by performing such maneuvers as crossing a runway.
b. The recreational flyer must abort the flight in the event of unpredicted obstacles or emergencies.
c. North County Cloud Clippers site must immediately notify ZOA at 510-745-3331 and KPRB at 805-237-3877 in the event of a lost link, fly-away, or operational area spillout that may affect manned aircraft operations and provide the following:
(1) Location of aircraft
(2) Size of aircraft (weight, length, width)
(3) Direction of Flight
(4) Altitude
4. SPECIAL INSTRUCTIONS:
a. North County Cloud Clippers must ensure all members and guest pilots are familiar and comply with the procedures in this agreement.
b. North County Cloud Clippers must be responsible for all signage located at the North County Cloud Clippers approved operational area.
c. North County Cloud Clippers must ensure that ZOA and KPRB have current officer contact, address, and phone number information.
d. UAS operations are prohibited over any open movement area. e. All operations must be contained within the operational area and conform to all current federal, state, and local governmental laws and regulations. NOTE: This entire flight area is over permanently closed taxiways at KPRB.
AUTHORIZATION: This AA does not, in itself, waive any Code of Federal Regulations not specifically stated, nor any state law or local ordinance. Should the proposed operation conflict with any state law or local ordinance, or require permission of local authorities or property owners, it is the responsibility of the Proponent to resolve the matter. This AA does not authorize flight within Temporary Flight Restrictions, Special Flight Rule Areas, regulatory SUA, or the Washington DC Federal Restricted Zone without pre-approval. The Proponent is hereby authorized to operate UA in the NAS within the areas defined in the Operations Authorized section of the cover page.
Attachment 4
FAA Form 7711-1 Airspace Authorization
2023-CBO-WSA-00188-FIX
CBO-FIX, July 24, 2023
Attachment 1
North County Cloud Clippers
OPERATIONS AREA
Class of Airspace: Surface E
At or Below: 400 Feet AGL
Location: 35° 40’ 26.5” N, 120° 37’ 14.5” W; 35° 40’ 26.5” N, 120° 36’ 52.9” W 35° 40’ 16.7” N, 120° 36’ 52.9” W; 35° 40’ 16.7” N, 120° 37’ 14.5” W (in Green)
Map created as of 10.23.2023
Attachment 4
Council Agenda Report
From: Ryan Cornell, Administrative Services Director
Subject: Approval of a Resolution Authorizing the Formation of the El Paso de Robles Infrastructure Financing Authority and Certain Other Matters Pertaining Thereto CEQA Determination: The City finds that this action is not a project under the California Environmental Quality Act pursuant to State Guidelines Section State CEQA Guidelines, §§ 15060, subd. (c)(2)-(3), 15378(b)(4).
Date: May 20, 2025
Facts
1. The Paso Robles Gateway Annexation project is located northwest of the intersection of Highway 101 and Highway 46 West and includes the development of two hotels with 325 rooms, three commercial centers with approximately 75,600 square feet of space, a 30,000 square-foot conference center, 17 workforce residential units, and up to 80 resort residential units or a third hotel with 100 rooms.
2. On August 2, 2016, City Council approved a Settlement Agreement with the Gateway developers which, among other things, requires the realignment of South Vine Street with Theatre Drive. This involves not only the construction of a new road, but also the construction of a bridge in order to connect to Highway 46 West.
3. In accordance with the Settlement Agreement, the City is responsible for constructing the bridge and approximately half of the cost to realign the road within 7-years of annexation, which occurred on December 20, 2021; the Developer is responsible for its portion of the road and undergrounding their utilities.
4. In September 2024, after a lengthy process, an encroachment permit was issued by Caltrans allowing the City to move forward with construction of the project. The encroachment permit allows for the connection of the bridge to Caltrans’ right-of-way.
5. The estimated construction cost of the bridge and road is over $20 million. The City’s budget for Fiscal Year (FY) 2024-25 includes the construction of bridge and road with approximately $5 million from development impact fees and other city funds, with an additional $15 million needed through debt proceeds.
6. While state law prohibits the City from issuing long-term debt directly without voter approval, the California Joint Exercise of Powers Act allows cities to participate in Joint Powers Authorities (JPAs), which can issue debt on behalf of their member agencies. This structure enables local governments to finance projects through JPAs, even when direct borrowing is restricted.
7. The City is currently a member of the El Paso de Robles Joint Powers Financing Authority, an authority created between the City and, at the time, the Paso Robles Redevelopment Agency (RDA). In 2012, the State of California dissolved all RDA’s and as a result, the remaining term of that joint powers authority is expected to expire in FY 2039-40, thus effectively dissolving the Financing Authority for purposes of obtaining financing for this project. As a result, the City needs to establish a new financing authority.
8. The California Statewide Communities Development Authority (CSCDA) was created in 1988, under California’s Joint Exercise of Powers Act, to provide California’s local governments with an effective tool for the timely financing of community-based public benefit projects.
9. More than 530 cities, counties and special districts have become Program Participants to CSCDA – which serves as their conduit issuer and provides access to an efficient mechanism to finance locallyapproved projects. CSCDA has issued more than $75 billion in tax-exempt bonds to help local governments build community infrastructure, provide affordable housing, create jobs, make access available to quality healthcare and education, and more.
10. The City and the CSCDA can form a new financing authority for the purpose of assisting the City with its future long-term financing for this project. Utilizing the CSCDA is the most expedient and efficient means of establishing a joint powers financing authority to meet the City’s obligations under the settlement agreement.
11. The establishment of this authority does not bind the City to any borrowing terms. The borrowing aspect of the project is expected to occur later this summer and require additional City Council approvals.
Options
1. Take no action;
2. Approve the establishment of the El Paso de Robles Infrastructure Financing Authority with the California State Communities Development Authority and Certain Other Matters Pertaining thereto; or
3. Provide alternative direction to staff.
Analysis and Conclusions
The City needs to finance capital improvements, which include the construction of the South Vine Bridge which will span State Route 46 West in the City. The City needs to form a joint powers financing authority to assist with such financings under California Law. The City currently has the existing El Paso de Robles Joint Powers Financing Authority; however, the remaining term of that joint powers authority is expected to expire in FY 2039-40. It is recommended the City and CSCDA take action to form a new financing authority for the purpose of assisting the City with its future long-term financings.
The item for consideration is a resolution authorizing the creation of the Financing Authority and the execution of the Joint Exercise of Powers Agreement (“JPA”), which has been presented to the City Council pursuant to the Joint Powers Law (Chapter 5, Division 7 to Articles 1 through 4 to Title 1 of the California Government Code)(“Joint Powers Law”). If the City wishes to proceed with the financing of the Project, and uphold its obligation in the approved Settlement Agreement, then the Financing Authority formation is an essential component.
Fiscal Impact
There is no fiscal impact from the adoption of the attached resolutions. However, there will be a $10,000 fee when the City Council approves the financing resolutions scheduled for June 2025.
CEQA
The City finds that this action is not a project under the California Environmental Quality Act pursuant to State Guidelines Section State CEQA Guidelines, §§ 15060, subd. (c)(2)-(3), 15378(b)(4).
Recommendation
Approve Resolution 25-XXX, establishing the El Paso de Robles Infrastructure Financing Authority with the California State Communities Development Authority and certain other matters pertaining thereto.
Attachments
1. Resolution 25-XXX – El Paso de Robles 2025 LRBs
2. Joint Powers Agreement El Paso de Robles Infrastructure Financing Authority
Attachment 1
RESOLUTION 25-XXX
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EL PASO DE ROBLES
AUTHORIZING THE CREATION OF THE EL PASO DE ROBLES INFRASTRUCTURE FINANCING
AUTHORITY AND CERTAIN OTHER MATTERS PERTAINING THERETO
WHEREAS, the City of El Paso de Robles (“City”) has determined that it is in the best interests of the City to approve a joint powers authority which shall be created by the City and the California Statewide Communities Development Authority (“CSCDA”) for the purpose of assisting the members of such joint powers authority with the financing of public capital improvements for the benefit of the community; and WHEREAS, it has been proposed that the City and CSCDA form a joint powers authority to be designated as the "El Paso de Robles Infrastructure Financing Authority” (“Financing Authority”) pursuant to a Joint Exercise of Powers Agreement ("Joint Powers Agreement") by and between the City and CSCDA dated May 20, 2025, a copy of which has been presented to the City Council pursuant to the Joint Powers Law (Articles 1 through 4 to Chapter 5, Division 7, Title 1 of the California Government Code); and WHEREAS, the City Council has reviewed the Joint Powers Agreement and wishes to approve the Joint Powers Agreement, the creation of the Financing Authority, and other matters related thereto.
NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF EL PASO DE ROBLES AS FOLLOWS:
SECTION 1. Incorporation of Recitals. The above recitals are true and correct, and are incorporated herein by this reference
SECTION 2. Creation of Financing Authority. The City Council hereby approves the creation of the Financing Authority, the membership of the Financing Authority therein, and the Joint Powers Agreement. The Mayor and City Clerk are hereby authorized and directed to execute and delivery the Joint Powers Agreement for and on behalf of the City, with any such changes as the Mayor or his designee may deem appropriate.
SECTION 3. The City finds that this action is not a project under the California Environmental Quality Act pursuant to State Guidelines Section State CEQA Guidelines, §§ 15060, subd. (c)(2)-(3), 15378(b)(4).
SECTION 4. Effective Date. This Resolution is and shall be effective from the date of its adoption.
APPROVED this 6th day of June, 2025, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
John R. Hamon, Jr. , Mayor
ATTEST:
Melissa Boyer, City Clerk
82472.04031\43391392.3
Attachment 2
JOINT EXERCISE OF POWERS AGREEMENT
CREATING
EL PASO DE ROBLES INFRASTRUCTURE FINANCING AUTHORITY
Dated as of May 20, 2025
82472.04031\43391392.3
TABLE OF CONTENTS Attachment 2
Page
-iARTICLE I
DEFINITIONS
Section 1.01. Definitions........................................................................................................ 1
ARTICLE II
GENERAL PROVISIONS
Section 2.01. Purpose............................................................................................................. 3 Section 2.02. Creation of Authority....................................................................................... 3
ARTICLE III
BOARD
Section 3.01. Board................................................................................................................ 3 Section 3.02. Powers.............................................................................................................. 3 Section 3.03. Compensation .................................................................................................. 4 Section 3.04. Meetings of the Board; Voting ........................................................................ 4
ARTICLE IV
OFFICERS AND EMPLOYEES
Section 4.01. Officers ............................................................................................................ 4 Section 4.02. Subordinate Officers........................................................................................ 5 Section 4.03. Removal of Officers......................................................................................... 5 Section 4.04. Executive Director ........................................................................................... 5 Section 4.05. Chairperson...................................................................................................... 5 Section 4.06. Vice Chairperson ............................................................................................. 5 Section 4.07. Secretary .......................................................................................................... 5 Section 4.08. Treasurer .......................................................................................................... 5 Section 4.09. Officers in Charge of Records, Funds and Accounts....................................... 5 Section 4.10. Other Employees.............................................................................................. 6 Section 4.11. Conflict of Interest Code.................................................................................. 6
ARTICLE V
POWERS
Section 5.01. General Powers................................................................................................ 6 Section 5.02. Specific Powers................................................................................................ 6 Section 5.03. Restrictions on Exercise of Powers.................................................................. 7 Section 5.04. Liability; Contribution ..................................................................................... 7 Section 5.05. Indemnity by Authority for Litigation Expenses of Officer, Board Member or Employee ...................................................................................... 8 Section 5.06. Execution of Contracts..................................................................................... 8
ARTICLE VI
CONTRIBUTION; ACCOUNTS AND REPORTS; FUNDS
Section 6.01. Contributions.................................................................................................... 8 Section 6.02. Accounts and Reports...................................................................................... 9 Section 6.03. Funds................................................................................................................ 9 Section 6.04. Annual Budget and Administrative Expenses ................................................. 9
82472.04031\43391392.3
TABLE OF CONTENTS Attachment 2
(continued)
Page
-iiPage 360 of 382 City Council Agenda May 20, 2025
82472.04031\43391392.3
TABLE OF CONTENTS Attachment 2
(continued)
Page
-iiiARTICLE VII
TERM; ADDITION OF MEMBERS; DISSOLUTION
Section 7.01. Term............................................................................................................... 10 Section 7.02. Addition of Members..................................................................................... 10 Section 7.03. Withdrawal or Exclusion of a Member.......................................................... 10 Section 7.04. Dissolution ..................................................................................................... 11
ARTICLE VIII
MISCELLANEOUS PROVISIONS
Section 8.01. Notices ........................................................................................................... 11 Section 8.02. Section Headings ........................................................................................... 12 Section 8.03. Consent .......................................................................................................... 12 Section 8.04. Law Governing .............................................................................................. 12 Section 8.05. Amendments.................................................................................................. 12 Section 8.06. Enforcement by Authority ............................................................................. 12 Section 8.07. Severability .................................................................................................... 12 Section 8.08. Successors and Assigns.................................................................................. 13 Section 8.09. Execution of Counterparts ............................................................................. 13
82472.04031\43391392.3
Attachment 2
1 JOINT EXERCISE OF POWERS AGREEMENT
CREATING THE EL PASO DE ROBLES INFRASTRUCTURE
FINANCING AUTHORITY
THIS JOINT EXERCISE OF POWERS AGREEMENT (the “Agreement”), is made and entered into this May 20, 2025 by and among the Members (as defined herein);
RECITALS
WHEREAS, agencies formed under Article 1 (commencing with Section 6500) of the Joint Powers Law (as defined herein) are permitted to provide financing for any of their members or other local public agencies in the State of California in connection with the lease, acquisition, construction and improvement of public capital improvements, working capital requirements or insurance programs of such members or other local agencies; and WHEREAS, the Members wish to form an agency under the Joint Powers Law known as the El Paso de Robles Infrastructure Financing Authority (“Authority”) for the purpose of providing an entity authorized by law to finance, lease, own, operate, and maintain public capital improvements for any of its Members, or to be owned by any of its Members (as defined herein).
NOW, THEREFORE, in consideration of the above premises and of the mutual promises herein contained, the Members do hereby agree as follows:
ARTICLE I
DEFINITIONS
Section 1.01. Definitions. In addition to the other terms defined herein, the following terms, whether in the singular or in the plural, when used herein and initially capitalized shall have the meanings specified.
“Agreement” means this Joint Exercise of Powers Agreement, as originally entered into or as amended from time to time in accordance with Section 8.05 hereof. “Authority” means the El Paso de Robles Infrastructure Financing Authority established pursuant to Section 2.02 hereof.
“Board” means the Board referred to in Section 3.01 hereof, which shall be the governing body of the Authority.
“Bond Law” means the Marks-Roos Local Bond Pooling Act of 1985, being Article 4 of the Joint Powers Law (commencing with Section 6584), as amended from time to time, Article 2 of the Joint Powers Law (commencing with Section 6540), as amended from time to time, or any other law available for use by the Authority in the authorization and issuance of Indebtedness or to provide for the financing of Indebtedness and/or Public Capital Improvements, as amended from time to time.
82472.04031\43391392.3
Attachment 2
2 “Bond Purchase Agreement” means an agreement between the Authority and a Member or a Local Agency, pursuant to which the Authority agrees to purchase Indebtedness from a Member or a Local Agency, as the case may be.
“City” means the City of El Paso de Robles.
“CSCDA” means the California Statewide Communities Development Authority. “Fiscal Year” means the fiscal year of the Authority as established from time to time by the Board, being at the date of this Agreement the period from July 1 in any calendar year to and including June 30 in the succeeding calendar year.
“Indebtedness” means bonds, notes or other evidences of indebtedness, and all other obligations, instruments and agreements constituting “Bonds” under the Joint Powers Law, which are issued or incurred by or on behalf of the Authority, a Member or a Local Agency pursuant to the Bond Law or pursuant to any other provision of law to finance the lease, acquisition, construction or improvement of Public Capital Improvements, Working Capital Requirements, or liability or other insurance needs of any Local Agency (“Local Obligations”). “Joint Powers Law” means Articles 1 through 4 (commencing with Section 6500) of Chapter 5, Division 7, Title 1 of the California Government Code, as amended from time to time. “Liability Share” means, with respect to any Member, the amount of a judgment for damages divided by the number of Members at the time the act or omission occurred, unless any portion of the judgment arises from an act or omission directly related to the studying, planning, financing, developing, acquiring, purchasing, construction, reconstructing, implementing, improving, enlarging, enhancing, operating, maintaining, selling, disposing of, or decommissioning of any project undertaken by the Authority under this Agreement, in which case, with respect to such portion, the term “Liability Share” shall mean, with respect to any Member, the amount of such portion multiplied by a fraction equal to (i) such Member’s entitlement or right, if any, to participate in such project at the time the act or omission occurred, divided by (ii) the aggregate amount of all Members’ entitlements or rights to participate in such project at the time the act or omission occurred.
“Local Agency” means each of the Members, any agency or subdivision of a Member, and any other city, county, authority, district or public corporation of the State of California. “Members” means, collectively, all of the Members that are parties to this Agreement, which Members shall initially consist of the CSCDA and the City and which shall include all additional Members that become parties hereto pursuant to the provisions of Section 7.02 hereof; provided, however, that the term “Member” shall not include any entity which shall have withdrawn or been excluded from the Authority pursuant to Section 7.03 hereof. “Public Agency” has the meaning given to the term “public agency” in Article 1 of the Joint Powers Law, as may be amended from time to time.
82472.04031\43391392.3
Attachment 2
3 “Public Capital Improvements” has the meaning given such term in Section 6585(n) of the Bond Law, as such provision may be amended from time to time. “Working Capital Requirements” means the requirements of any Local Agency for funds to be used by, or on behalf of, such Local Agency for any purpose for which such Local Agency may borrow money pursuant to Section 53852 of the California Government Code, as amended from time to time.
ARTICLE II
GENERAL PROVISIONS
Section 2.01. Purpose. This Agreement is made pursuant to the Joint Powers Law providing for the joint exercise of powers common to two or more Members, and for other purposes as permitted under the Joint Powers Law and the Bond Law. The purpose of this Agreement is to provide for the financing or refinancing of Public Capital Improvements for and Working Capital Requirements and insurance programs of, the Members and any Local Agency, including without limitation, the purchase by the Authority of Indebtedness of any of the Members or a Local Agency pursuant to Bond Purchase Agreements, the lending of funds by the Authority to a Member or a Local Agency or the entering into of contractual arrangements by the Authority with a Member or a Local Agency and any other transaction authorized by the Joint Powers Law and other laws; engaging in financings relating to the encouragement of economic development and the stimulation of public revenues in the CSCDA through the acquisition and financing by the Authority of such Public Capital Improvements; and to engage in any other transactions authorized by the Joint Powers Law and other laws.
Section 2.02. Creation of Authority. Pursuant to the Joint Powers Law, there is hereby created a public entity to be known as the “El Paso de Robles Infrastructure Financing Authority.” The Authority shall be a public entity separate and apart from the Members, and shall administer this Agreement.
ARTICLE III
BOARD
Section 3.01. Board of Directors (“Board”). The Authority shall be governed by a Board, which shall be comprised of members determined as provided in this Section 3.01. The Board shall be called the “Board of the El Paso de Robles Infrastructure Financing Authority.” Notwithstanding anything contained in this Section 3.01 to the contrary, no member of the Board shall hold membership on the Board after the expiration of his or her term as a member of the governing body of a Member, or after he or she resigns, is removed or for any other reason no longer serves as a member of the governing body of a Member. The Board members shall be the members of the City Council of the City.
Section 3.02. Powers. Subject to the limitations of this Agreement and the laws of the State of California, the powers of this Authority shall be vested in and exercised by and its property controlled and its affairs conducted by the Board. The Board shall have the responsibility for the
82472.04031\43391392.3
Attachment 2
4 general management of the affairs, property and business of the Authority and may, from time to time, adopt and modify such Bylaws and other rules and regulations for that purpose and for the conduct of its meetings as it may deem proper.
Section 3.03. Compensation. Members of the Board shall serve without compensation.
Each such member may be reimbursed for necessary and actual expenses, including travel incident to his or her services as member of the Board, pursuant to resolution of the Board. Any member of the Board may elect, however, to decline said reimbursement.
Section 3.04. Meetings of the Board; Voting.
(a) Call, Notice and Conduct of Meetings. All meetings of the Board, including without limitation, regular, adjourned regular and special meetings, shall be called, noticed, held and conducted in accordance with the Ralph M. Brown Act, being Sections 54950 et seq. of the California Government Code, as amended from time to time. (b) Regular Meetings. The Board shall hold a regular meeting not less than once each calendar year. Regular meetings of the Board shall be held at such time as the Board may fix by resolution from time to time, and if any day so fixed shall fall upon a Saturday, Sunday or legal holiday, then, upon the next succeeding business day at the same hour.
(c) Special Meetings. Special meetings of the Board shall be held whenever called by the Chairperson of the Authority or by a majority of the members of the Board, in accordance with the provisions of the California Government Code, as amended from time to time.
(d) Quorum. A majority of the total number of members of the Board shall constitute a quorum for the transaction of business, except that less than a quorum may adjourn from time to time.
(e) Voting. Each member of the Board shall have one vote. The affirmative votes of at least a majority of the members of the Board present at any meeting at which a quorum is present shall be required for the Board to take any action. Every act or decision done or made by a majority of the members of the Board present at any meeting at which a quorum is present shall be the act of the Board.
ARTICLE IV
OFFICERS AND EMPLOYEES
Section 4.01. Officers. The officers of the Authority shall be a Chairperson, a Vice Chairperson, an Executive Director, a Secretary, a Treasurer and such other officers as the Board may appoint. The Chairperson shall be the City’s Mayor. The Vice Chairperson shall be the City’s Mayor Pro Tem. The Treasurer shall be the City’s Finance Director. The City Manager shall serve as the Executive Director of the Authority. The City Clerk shall serve as the Secretary of the Authority.
82472.04031\43391392.3
Attachment 2
5 Section 4.02. Subordinate Officers. The Board may elect or authorize the appointment of such other officers than those herein above mentioned as the business of the Authority may require, each of whom shall hold office for such period, have such authority and perform such duties as are provided in this Agreement, or as the Board, from time to time, may authorize or determine.
Section 4.03. Removal of Officers. Any officer may be removed, either with or without cause, by a majority of the members of the Board at any regular or special meeting of the Board.
Should a vacancy occur in any office as a result of death, resignation, removal, disqualification or any other cause, the Board may delegate the powers and duties of such office to any officers or to any members of the Board until such time as a successor for said office has been appointed.
Section 4.04. Executive Director. The Executive Director shall be the chief executive officer of the Authority and shall, subject to the control of the Board, have general supervision, direction and control of the business and officers of the Authority. He or she shall be ex officio member of all standing committees, and shall have the general powers and duties of management of the Authority and shall have such other powers and duties as may be prescribed by the Board or this Agreement.
Section 4.05. Chairperson. The Chair shall sign all contracts on behalf of the Authority, or the Board may appoint in writing a designee to sign contracts on behalf of the Authority, and shall perform such other duties as may be imposed by the Board.
Section 4.06. Vice Chairperson. In the absence or disability of the Chairperson, the Vice Chairperson shall perform all the duties of the Chairperson and when so acting shall have all the powers of and be subject to all of the restrictions upon the Chairperson. The Vice Chairperson shall have such other powers and perform such other duties as may, from time to time, be prescribed for him or her by the Board or this Agreement.
Section 4.07. Secretary. The Secretary shall keep or cause to be kept a book of minutes at the principal office or at such other place as the Board may order, of all meetings of the Board, with the time and place of holding, whether regular or special, and if special, how authorized, the notice thereof given, the names of those present at Board meetings and the proceedings thereof.
The Secretary shall give or cause to be given notice of all meetings of the Board. The Secretary shall keep the Authority records in safe custody and shall have such other powers and perform such other duties as may be prescribed by the Board or this Agreement.
Section 4.08. Treasurer. Subject to the applicable provisions of any indenture or resolution providing for a trustee or other fiscal agent, the Treasurer is designated as the depositary of the Authority to have custody of all the money of the Authority, from whatever source, and, as such, shall have the powers, duties and responsibilities specified in Section 6505.5 of the Joint Powers Law. The Treasurer is hereby designated as controller of the Authority and, as such, shall have the powers, duties and responsibilities specified in Section 6505.5 of the Joint Powers Law.
The controller of the Authority shall draw checks to pay demands against the Authority when the demands have been approved by the Authority.
Section 4.09. Officers in Charge of Records, Funds and Accounts. The Treasurer to the extent such officer’s duties and responsibilities require, is designated as the public officer or person
82472.04031\43391392.3
Attachment 2
6 who has charge of, handles, or has access to any property of the Authority, and such officer shall file an official bond as required by Section 6505.1 of the Joint Powers Law in the amount of $25,000.
Section 4.10. Other Employees. The Board shall have the power to appoint and employ such other officers, employees, consultants and independent contractors as it may deem necessary for the purposes of this Agreement, any of whom may be employees of a Member, and who shall have such powers, duties and responsibilities as are determined by the Board.
All of the privileges and immunities from liability, exemptions from laws, ordinances and rules, all pension, relief, disability, workers’ compensation and other benefits which apply to the activities of officers, agents, or employees of a public agency when performing their respective functions shall apply to them to the same degree and extent while engaged in the performance of any of the functions and other duties under this Agreement.
None of the officers, agents, or employees directly employed by the Authority shall be deemed, by reason of their employment by the Authority to be employed by any of the Members or, by reason of their employment by the Authority, to be subject to any of the requirements of any of the Members.
Section 4.11. Conflict of Interest Code. The City’s Conflict of Interest Code shall serve as the Conflict of Interest Code for the Authority as required by the Political Reform Act of 1974, commencing with section 81000 of the Government Code of the State of California.
ARTICLE V
POWERS
Section 5.01. General Powers. The Authority shall exercise in the manner herein provided powers common to Members, or as otherwise permitted under the Joint Powers Law, and necessary or convenient to the accomplishment of the purposes of this Agreement, subject to the restrictions set forth in Section 5.03 hereof.
As provided in the Joint Powers Law, the Authority shall be a public entity separate from the Members. The Authority shall have all of the powers provided in the Joint Powers Law, including but not limited to Article 4 of the Joint Powers Law (commencing with Section 6584), and including the power to issue or incur Indebtedness under the Bond Law.
Section 5.02. Specific Powers. The Authority is hereby authorized, in its own name, to do all acts necessary for the exercise of the foregoing powers, including but not limited to, any or all of the following:
(a) to make and enter into contracts;
(b) to employ agents or employees;
82472.04031\43391392.3
Attachment 2
7 (c) to plan, develop, acquire, construct, manage, maintain, repair, replace or operate any Public Capital Improvement, including the common power of the Members to acquire any Public Capital Improvement by the power of eminent domain; (d) to acquire (by the exercise of the power of eminent domain or otherwise), hold, lease, sell or otherwise dispose of any real or personal property, tangible or intangible, and any interests therein, wherever located;
(e) to issue or incur Indebtedness and otherwise to incur debts, liabilities or obligations, provided that no such Indebtedness, debt, liability or obligation shall constitute a debt, liability or obligation of any of the Members;
(f) to sue and be sued in its own name;
(g) to establish a budget and authorize expenditures therefrom; (h) to apply for, accept, receive and disburse grants, loans and other aids from any agency of the United States or of the State of California or from any private sources; (i) to enter into agreements for the creation of separate public entities and agencies pursuant to the Joint Powers Law;
(j) to invest any money in the treasury as determined by the Authority, in accordance with applicable provisions of the Joint Powers Law and Section 53601 of the California Government Code, as amended from time to time; (k) to apply for letters of credit or other forms of financial guarantees in order to secure the repayment of Indebtedness and enter into agreements in connection therewith; (l) to carry out and enforce all the provisions of this Agreement; (m) to make and enter into Bond Purchase Agreements;
(n) to purchase Indebtedness of a Member or any Local Agency; (o) to establish non-profit corporations or for-profit corporations to assist in accomplishing any of its objectives; and
(p) to exercise any and all other powers as may be permitted by State law and/or the Joint Powers Law (including Section 6588 of the Joint Powers Law).
Section 5.03. Restrictions on Exercise of Powers. The powers of the Authority shall be exercised in the manner provided in the Joint Powers Law and in the Bond Law subject only to the restrictions upon the manner of exercising such powers as are imposed upon the Members in the exercise of similar powers.
Section 5.04. Liability; Contribution. Pursuant to the Joint Powers Law, the debts, liabilities and obligations of the Authority shall not be the debts, liabilities and obligations of any
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8 of the Members, except as provided by Section 895.2 of the California Government Code, as amended from time to time, in the case of injury caused by a negligent or wrongful act or omission occurring in the performance of this Agreement. In the event any Member is held liable upon any judgment for damages caused by a negligent or wrongful act or omission occurring in the performance of this Agreement, and pays in excess of its Liability Share of such judgment, such Member shall be entitled to contribution from each other Member and may require each other Member to pay an amount towards the judgment for damages, but in no event shall any such other Member be required to pay in excess of its Liability Share of such judgment. No Board member, Member, officer, agent or employee of the Authority shall be individually or personally liable for the payment of the principal of or premium or interest on any obligations of the Authority or be subject to any personal liability or accountability by reason of any obligations of the Authority; but nothing herein contained shall relieve any such Board member, Member, officer, agent or employee from the performance of any official duty provided by law or by the instruments authorizing the issuance of any obligations of the Authority. Nothing contained in this Agreement shall in any way diminish the liability of any Member or other party with respect to any contract between such Member or other party and the Authority.
Section 5.05. Indemnity by Authority for Litigation Expenses of Officer, Board Member or Employee. In the event any Board member, officer or employee of the Authority be sued, either alone or with others, because he or she is or was a Board member, officer or employee of the Authority, in any proceeding arising out of his or her alleged misfeasance or nonfeasance in the performance of his or her duties or out of any alleged wrongful act against the Authority or by the Authority, indemnity to such person for reasonable expenses, including attorneys’ fees incurred in the defense of the proceedings, may be assessed against the Authority or its receiver by the court in the same or a separate proceeding if the person sued acted in good faith and in a manner such person reasonably believed to be in the best interests of the Authority and, in the case of a criminal proceeding, had no reasonable cause to believe the conduct of such person was unlawful. The amount of such indemnity shall equal the amount of the expenses, including attorneys’ fees, and the amount of any judgment, incurred in the defense of the proceeding.
Section 5.06. Execution of Contracts. The Board, except as otherwise provided in this Agreement, may authorize any officer or officers, agent or agents, to enter into any contract or execute any contract or execute any instrument in the name of and on behalf of the Authority and such authorization may be in general or confined to specific instances and unless so authorized by the Board, no officer, agent or employee shall have any power or authority to bind the Authority by any contract or engagement or to pledge its credit or to render it liable for any purpose or in any amount.
ARTICLE VI
CONTRIBUTION; ACCOUNTS AND REPORTS; FUNDS
Section 6.01. Contributions. In accordance with the California Government Code, the Members may in the appropriate circumstances when required hereunder: (a) make contributions from their treasuries as approved from time to time by the Board, for the purposes set forth herein, (b) make payments of public funds to defray the cost of such purposes, (c) make advances of public
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9 funds for such purposes, such advances to be repaid as provided herein, or (d) use their personnel, equipment or property in lieu of other contributions or advances. The provisions of Section 6513 of the Joint Powers Law are hereby incorporated into this Agreement. The Authority may make such arrangements relative to the repayment or return to the Members of such contributions, payments and advances as are approved from time to time by the Board.
Any Member which fails to make or pay when due any required contribution, payment or advance to the Authority, may have its rights under this Agreement terminated and may be excluded from participation in the Authority as provided in Section 7.03(c) hereof. Any such Member shall continue to be liable for its obligations under any contract with the Authority and for any unpaid contribution, payment or advance approved by the Board prior to such Member’s exclusion and not objected to by such Member by written notice to the Authority within thirty (30) days after such approval.
Section 6.02. Accounts and Reports. There shall be strict accountability of all funds and reporting of all receipts and disbursements of the Authority. The Authority shall establish and maintain such funds and accounts as may be required by good accounting practice or by any provision of any resolution, indenture or other instrument of the Authority securing its Indebtedness, except insofar as such powers, duties and responsibilities are assigned to a trustee appointed pursuant to such resolution, indenture or instrument. The books and records of the Authority shall be open to inspection at all reasonable times by the Members and their representatives. The Authority shall give an audited written report of all financial activities for each Fiscal Year to the Members within 210 days after the close of each Fiscal Year.
The Treasurer, as controller of the Authority, shall contract with a certified public accountant or public accountant to make an independent annual audit of the accounts and records of the Authority. In each case the minimum requirements of the audit shall be those prescribed by the State Controller for special districts under Section 26909 of the California Government Code, as amended from time to time, and shall conform to generally accepted auditing standards. When such an audit of an account and record is made by a certified public accountant or public accountant, a report thereof shall be filed as public records with each of the Members and with the City. Such report shall be filed within 12 months of the end of the Fiscal Year under examination.
Any costs of the audit, including contracts with, or employment of, certified public accountants or public accountants, in making an audit pursuant to this Section shall be borne by the Authority and shall be a charge against any unencumbered funds of the Authority available for the purpose.
Section 6.03. Funds. Subject to the applicable provisions of any instrument or agreement which the Authority may enter into, which may provide for a trustee to receive, have custody of and disburse Authority funds, the Treasurer of the Authority shall receive, have the custody of and disburse Authority funds as nearly as possible in accordance with generally accepted accounting practices, and shall make the disbursements required by this Agreement or to carry out any of the provisions or purposes of this Agreement.
Section 6.04. Annual Budget and Administrative Expenses. The Board may adopt a budget for administrative expenses, which shall include all expenses not included in any financing
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10 issue of the Authority, annually prior to July 1st of each year. The estimated annual administrative expenses of the Authority shall be allocated by the Authority to the Members equally.
ARTICLE VII
TERM; ADDITION OF MEMBERS; DISSOLUTION
Section 7.01. Term. This Agreement shall become effective as of the date first set forth above, and the Authority shall come into existence, on the date of execution and delivery hereof, and this Agreement shall thereafter continue in full force and effect until the later of December 31, 2090, or the date on which all Indebtedness and other obligations of the Authority and the interest thereon shall have been paid in full or until adequate provision for such payment shall have been made in accordance with the instruments governing such Indebtedness, and no contracts to which the Authority is a party remain in effect, unless earlier dissolved pursuant to Section 7.04 hereof.
Section 7.02. Addition of Members. (a) Public Agencies possessing one or more of the powers specified in the first paragraph of the recitals to this Agreement may be added as parties to this Agreement, and become Members, upon the filing by such Public Agency with the Board of an instrument in form and substance satisfactory to the Board together with a certified copy of a resolution of its governing body, whereby the Public Agency (i) agrees to the provisions of this Agreement and (ii) requests to become a Member. In reviewing an application for membership, the Board may reject said application based on the creditworthiness of the applicant or on any other matter which has affected or may affect the creditworthiness of the applicant and which may thereby affect the creditworthiness of the Authority. The Board also reserves the right to reject an applicant if the Board determines that the membership of such applicant would be detrimental to the effectiveness of the Authority or would interfere with the realization of the Authority’s goals and purposes.
(b) Notwithstanding Section 7.02(a) hereof, no such Public Agency shall become a Member until (i) its admission is approved by a vote of a majority of the Board voting on the matter and (ii) such Public Agency deposits or agrees to deposit with the Authority an amount equal to such share of the costs and expenses incurred by the Authority prior to the date of admission of such Public Agency as a Member as shall be determined by the Board.
(c) Upon satisfaction of the provisions of Section 7.02(a) and 7.02(b) hereof, such Public Agency shall be a Member for all purposes of this Agreement, and the instrument provided pursuant to Section 7.02(a) hereof shall become a part of the official records of the Authority. Neither the effectiveness of such membership nor such instrument shall constitute an amendment or modification of this Agreement for purposes of Section 8.05 hereof.
Section 7.03. Withdrawal or Exclusion of a Member. (a) Any Member may withdraw from the Authority upon the following conditions: (i) the Member shall have filed with the Board a certified copy of a resolution of its governing body expressing its desire to so withdraw and (ii) if the Authority, prior to the filing of such resolution, shall have incurred any obligation payable from contributions, payments or advances in accordance with Section 6.01 hereof, which
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11 obligation matures after the date of such filing, the withdrawing Member shall have paid, or made arrangements satisfactory to the Board to pay to the Authority its pro rata portion of such obligation.
(b) Upon compliance with the conditions specified in Section 7.03(a) hereof, the withdrawing Member shall no longer be considered a Member for any reason or purpose under this Agreement and its rights and obligations under this Agreement shall terminate. The withdrawal of a Member shall not affect any obligations of such Member under any contract between the withdrawing Member and the Authority. (c) Any Member which has (i) defaulted under a contract with the Authority, or (ii) failed to pay any required contributions, payments or advances in accordance with Section 6.01 hereof, may have its rights under this Agreement terminated and may be excluded from participating in the Authority by a vote of a majority of the members of the Board voting on the matter (excluding from voting the member(s) of the Board, if any, representing the defaulting Member). Any excluded Member shall continue to be liable for its obligations under any contract with the Authority and for any unpaid contribution, payment or advance approved by the Board prior to such Member’s exclusion and not objected to by such Member by written notice to the Authority within thirty (30) days after such approval.
No withdrawal from membership pursuant to Sections 7.03(a) and 7.03(b) hereof or exclusion from participation pursuant to Section 7.03(c) hereof shall constitute an amendment or modification of this Agreement for purposes of Section 8.05 hereof.
Section 7.04. Dissolution. With the approval of the Board, the Authority may be dissolved, if at the time of such dissolution the Authority has no Indebtedness outstanding and is not a party to any contract remaining in effect (unless adequate provision shall have been made for the discharge of such contract). Upon the dissolution or termination of the Authority, and after payment or provision for payment, all debts and liabilities, the assets of the Authority shall be distributed to the Members in such manner as shall be determined by the Board.
ARTICLE VIII
MISCELLANEOUS PROVISIONS
Section 8.01. Notices. (a) Any notice, demand or request to any Member provided for in this Agreement shall be in writing and shall be deemed properly served, given, or made if delivered in person or sent by registered or certified mail, postage prepaid, to the person designated by such Member upon the commencement of its membership in the Authority. (b) A Member may, at any time, by written notice to each other Member and the Authority, designate different persons or different addresses for the giving of notices, demands or requests to it hereunder.
(c) Any notice, demand or request to the Authority provided for in this Agreement shall be in writing and shall be deemed properly served, given, or made if
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12 delivered in person or sent by registered or certified mail, postage prepaid, to the El Paso de Robles Infrastructure Financing Authority (at 1000 Spring Street, Paso Robles, California 93446, Attn: Executive Director or at the notice address most recently provided by said Member pursuant to this Section 8.01.
(d) Any notice, demand, or request to the City provided for in this Agreement shall be in writing and shall be deemed properly served, given, or made if delivered in person or sent by registered or certified mail, postage prepaid, to the City of El Paso de Robles at 1000 Spring Street, Paso Robles, California 93446; or at the notice address most recently provided by said Member pursuant to this Section 8.01. (e) Any notice, demand, or request to the Authority provided for in this Agreement shall be in writing and shall be deemed properly served, given, or made if delivered in person or sent by registered or certified mail, postage prepaid, to California Statewide Communities Development Authority, 1700 North Broadway, Suite 405, Walnut Creek, California 94596, Attn: Managing Director or at the notice address most recently provided by said Member pursuant to this Section 8.01.
(d) The Authority may, at any time, by written notice to each Member, designate a different or additional person or a different address for giving notices, demands or requests to it hereunder.
Section 8.02. Section Headings. All section headings in this Agreement are for convenience of reference only and are not to be construed as modifying or governing the language in the section referred to or to define or limit the scope of any provision of this Agreement.
Section 8.03. Consent. Whenever in this Agreement any consent or approval is required, the same shall not be unreasonably withheld.
Section 8.04. Law Governing and Venue. This Agreement is made in the State of California under the constitution and laws of the State of California, and is to be so construed.
Venue shall be held exclusively in San Luis Obispo County.
Section 8.05. Amendments. This Agreement may be amended at any time, or from time to time, except as limited by contract with the owners of Indebtedness issued or incurred by the Authority, a Member or a Local Agency or by applicable regulations or laws of any jurisdiction having authority, by one or more supplemental agreements executed by all then current Members either as required in order to carry out any of the provisions of this Agreement or for any other purpose.
Section 8.06. Enforcement by Authority. The Authority is hereby authorized to take any or all legal or equitable actions, including but not limited to injunction and specific performance, necessary or permitted by law to enforce this Agreement.
Section 8.07. Severability. In the event that any term, covenant or condition of this Agreement or the application of such term, covenant or condition shall be held invalid as to any person or circumstance by any court having jurisdiction in the premises, all other terms, covenants
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13 and conditions of this Agreement and their application shall not be affected thereby, but shall remain in force and effect unless a court holds that the provisions are not separable from all other provisions of this Agreement.
Section 8.08. Successors and Assigns. This Agreement shall be binding upon and shall inure to the benefit of the successors and assigns of the Members. No Member may assign any right or obligation hereunder without the written consent of the other Members. The immediately preceding sentence shall not affect, in any respect, any right of assignment under any contract between any Member and the Authority.
Section 8.09. Execution of Counterparts. This Agreement may be executed in any number of counterparts. All such counterparts shall be deemed to be originals and shall together constitute but one and the same instrument.
(Signature page follows)
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S-1
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed and attested by their proper officers thereunto duly authorized, on the day and year first set forth above.
CALIFORNIA STATEWIDE COMMUNITIES
DEVELOPMENT AUTHORITY
By: ______________________________________
James Hamill, Executive Director
CITY OF EL PASO DE ROBLES By:
______________________________________
John Hamon, Mayor
ATTEST:
_________________________________
Melissa Boyer, City Clerk
-Signature PageJoint Exercise of Powers Agreement
Creating El Paso De Robles Infrastructure Financing Authority
Council Agenda Report
From: Angelica Fortin, Community Services Director
Subject: Youth Sports Field Capacity Update and Direction to Staff CEQA Determination: The City finds that this action is not a project under the California Environmental Quality Act pursuant to State Guidelines Section State CEQA Guidelines, §§ 15060, subd. (c)(2)-(3), 15378.
Date: May 20, 2025
Facts
1. Sports field capacity in Paso Robles has emerged as a growing issue, especially since the full return of outdoor athletics following the COVID-19 pandemic. Concerns raised by the public relate to both the availability and condition of the existing sports fields owned and operated by the City of Paso Robles.
2. Increased participation in outdoor recreation across all age groups, greater after-school programming that limits access to school fields, and constrained maintenance resources have all contributed to growing pressure on existing facilities.
3. At the March 4, 2025 City Council meeting, public comment highlighted the urgency of youth sports field capacity challenges. In response, the Council directed City staff to provide a detailed update regarding sport field capacity concerns.
Community Outreach
Following the March 4, 2025 City Council meeting, Recreation Services requested feedback from local field user groups to gather additional input regarding field access, conditions, and overall capacity concerns.
Given that the fields are shared by both youth and adult organizations, feedback was solicited to reflect the needs and experiences of all age groups. Currently, there are 19 organizations that primarily schedule sports fields which include seven adult leagues and 12 youth leagues with a cumulative total of 3,220 members.
Outreach targeted organizations that regularly reserve field space across a variety of sports. In total, responses were received from seven youth organizations and four adult groups, collectively representing approximately 1,290 members.
Community feedback was previously collected as part of the Sherwood Master Planning process, Larry Moore Park Design Development process, and Beechwood Park Concept review process.
Options
1. Take no action;
2. Refer the matter to the Parks and Recreation Advisory Committee for review and recommendations; or
3. Direct staff to implement short-term strategies to alleviate the immediate need to increase sport field capacity and address maintenance concerns which include installing field lighting and renovating field turf at Sherwood Park sports fields and adopting a formal policy position encouraging the Paso Robles
Joint Unified School District (PRJUSD) to incorporate publicly accessible youth sports fields as part of future planning for the 36th Street campus and bring back the necessary items, including CEQA review, to facilitate this direction. Additionally, implement long-term opportunities to meet the growing recreational needs of the community which includes advancing the plans to develop Larry Moore Park, Beechwood Park, and a Master Park, Recreational Facility, and Trails Plan and bring back the necessary items to facilitate this direction; or
4. Provide alternative direction to staff.
Analysis and Conclusions
Youth sports participation in Paso Robles has steadily increased over the past 5 years (Figure 1). Local youth and adult soccer, baseball, softball, and football leagues continue to expand. Simultaneously, increased Paso Robles Joint Unified School District (PRJUSD) after school programming has reduced access to school fields. This growth has increased usage on existing City field inventory, particularly during peak seasons.
Annual Sport Field User Group Participants (Includes Leagues and Tournaments) Category
FY 2019-
20 FY 2020-
21 FY 2021-
22 FY 2022-
23 FY 2023-
24 Adult Soccer 420 240 435 510 630
Adult Softball 440 115 705 685 685
Youth
Soccer/Football 1,033 180 1,056 1,534 1,679
Youth
Softball/Baseball 735 651 1,483 1,541 1,452
Total 2,628 1,186 3,679 4,270 4,446
Figure 1
User Group Feedback
To gain a clearer understanding of community concerns related to athletic fields, City staff solicited input from organized user groups. Feedback highlighted two primary issues: field capacity and the quality of existing facilities.
Key findings include:
Nine of the eleven responding groups offer year-round programming, underscoring the need for lighted fields during the fall, winter, and early spring seasons. All youth and adult soccer groups (100%) indicated a strong preference for Barney Schwartz Park (BSP), citing superior field quality, access to goals and lights, and regulation-size fields. Sherwood Park was unanimously identified by youth soccer users as their least preferred facility, primarily due to safety concerns stemming from gopher holes, uneven ground, and, in one case, dog waste.
Nine of the eleven groups indicated they would reserve an average of 5.5 additional hours per week per group if field space was available, representing a potential increase of 49.5 hours of weekly field use.
Nine of the eleven groups noted they would reserve an additional 6.25 hours per week each if field lights were added to unlit fields at Sherwood Park representing a potential increase of 56.25 hours of weekly field use.
Safety concerns related to turf conditions were also reported at Pioneer Park and Larry Moore Park.
Additional concerns included damage caused by aggressive adult play, the practice of "cross play" (two smaller games on one field simultaneously), and the use of fields for purposes beyond their intended design.
User groups provided several recommendations to address concerns related to sports field capacity and maintenance. These include:
Installing field lighting at Sherwood Park to extend usable play hours. Renovating sports fields at Larry Moore and Sherwood Parks to meet current standards. Enhancing the annual maintenance schedule for fields outside of BSP, including more frequent mowing.
Supplying field maintenance equipment at all facilities for shared access by user groups. Replacing natural turf at BSP with either synthetic turf or Bermuda grass to reduce annual field closures.
Seven of the eleven user groups expressed willingness to adjust reservation timesto help alleviate capacity constraints (youth groups starting one hour earlier, and adult groups one hour later).
Current Conditions
Currently, the City manages 16 athletic fields shared among youth leagues, adult recreational leagues, school programs, and public unpermitted use (drop-in games). According to the 2024 National Recreation and Park Association (NRPA) standards for outdoor park and recreation facilities, the City would need to add approximately four additional fields to adequately meet the recreational needs of the existing population (Figure 2).
Figure 2
To compensate for the current shortfall, several fields are being utilized beyond their intended design. For example, softball and baseball outfields are being repurposed to accommodate youth football, cheerleading, and soccer activities. One such field, the Pioneer Park baseball field, has been sold to the Mid-State Fairgrounds. Following the 2026 season, the City will lose access to this field, increasing the need for additional athletic fields to five. Notably, Pioneer Park is one of only eleven fields equipped with lighting, which presents an additional challenge as there is a significant community demand for more lighted fields to support evening and year-round play.
In addition to field availability, play is also impacted by overall field conditions and required maintenancerelated downtime. All eleven user groups identified Barney Schwartz Park (BSP) as their preferred facility, citing the superior quality of its fields. BSP is the only park in the City that is fully maintained by Parks and Trails staff and has dedicated maintenance personnel on-site five days a week. In contrast, all other parks across the City receive general maintenance, including landscaping and turf care, only once per week.
Rodent control, particularly for gopher activity, is conducted as time and staffing allow, but must be balanced with other seasonal priorities. Several user groups have reported that fields outside of BSP are
unsafe, primarily due to uneven playing surfaces and persistent gopher issues. Including the two staff members dedicated to maintenance at BSP, the Parks and Trails team of eight conducts landscaping and irrigation maintenance at 14 parks, 8 trails, and 3 City facilities.
Given these maintenance limitations, the City has long relied on partnerships with user groups. Since 2002, user groups have provided supplemental field maintenance support. This partnership was formally acknowledged through Resolution 16-135, adopted in 2016, which offers significantly reduced field rental rates in recognition of these contributions. While user groups continue to take primary responsibility for infield maintenance at baseball facilities, participation in maintaining soccer and multipurpose fields has declined since the COVID-19 pandemic.
Field closures required for annual maintenance further impact field availability. BSP’s softball fields are closed every December for renovation, while the soccer fields are taken offline annually, from March 1 to May 31. During the most recent season, the soccer fields were closed earlier than usual, starting in December and extending through February, to accommodate additional rehabilitation work following excessive wear and damage caused by overuse and misuse during inclement weather. These extended closures have placed additional pressure on already limited field capacity.
Prior Planning Efforts
In February 2019, following extensive community engagement, the City Council adopted the Sherwood Master Plan to serve as a comprehensive roadmap for revitalizing parks in the Sherwood Acres neighborhood. This included Sherwood Park, Sherwood Forest Park, and Paso Robles Veterans Park (formerly Oak Creek Park). The envisioned park complex aimed to feature four lighted youth ballfields and three lighted soccer fields—amenities strongly supported by the community.
Despite widespread enthusiasm, the City was unable to secure the necessary grant funding to implement the plan in full. As progress was made on certain elements, including a new pickleball court and picnic areas, a significant floodplain constraint was identified. This discovery has major implications for the feasibility of placing key recreational facilities in their originally proposed locations.
As a result, the existing plan must evolve. The presence of the floodplain necessitates a new, forwardlooking vision—one that carefully reassesses park layout, prioritizes flood-resilient design, and thoughtfully places major amenities to ensure both safety and long-term usability. This reimagined approach offers an opportunity to creatively re-envision public spaces while remaining responsive to environmental realities and community needs.
Access to School Fields
While access to school athletic fields has become more limited, facilities within the Paso Robles Joint Unified School District (PRJUSD) remain available through the School Connected Organization program, provided requested use does not conflict with scheduled after-school activities. Non-profit youth sports organizations with at least 80 percent of participants registered in PRJUSD are eligible to apply for field time at no cost.
Recently, the Paso Robles Girls’ Softball League lost access to a portion of the softball fields at Liberty Continuation High School due to the installation of a new sand volleyball court. In response, the League collaborated with the Paso Robles Youth Sports Council to invest $15,000 in improvements to three softball fields at the Winifred Pifer Elementary School campus.
Other examples of successful use include Paso Robles Youth Football and the Central Coast Surf Soccer Club, both of which regularly utilize Lions Field. The Central Coast Surf Soccer Club is also pursuing additional field access at the now closed 36th Street campus-formerly Georgia Brown Elementary School.
While some youth sports organizations have successfully navigated the School Connected Organization process, others report challenges in securing field time, including declined requests. Additionally, some groups remain unaware of the program’s existence. It is important to note that adult sports leagues are not eligible to participate in the School Connected Organization program. It is important to note that school fields are unlit which significantly reduces availability.
Long-Term Opportunities
As the City continues to grow, strategic long-term planning will be essential to meet the evolving needs of sports organizations and park users. Several key opportunities include:
Develop Larry Moore Park: Proceeds from the sale of Pioneer Park were allocated to fund a design development plan for Larry Moore Park. Informed by community input, two design concepts were created, both incorporating youth sports fields. City staff are currently gathering additional feedback, with plans to present a final concept to the Parks and Recreation Advisory Committee (PRAC) and, subsequently, to the City Council. At this time, the cost for improvements is still being determined and funding for construction has not been secured. If the final design increases the park’s capacity, development impact fees can be used to fund a portion of the build out. It is recommended the final design for Larry Moore Park be incorporated into a Master Park, Recreational Facility, and Trails Plan.
Beechwood Park: The Beechwood Specific Plan, adopted in October 2020 includes the creation of an 8-acre public park to be constructed by the developer. Community feedback informed updates to the final park concept, which was endorsed by PRAC on September 9, 2024. The updated design includes three lighted youth baseball fields with two overlayed soccer fields. The estimated cost to build the park will exceed the original 2021 Development Agreement estimate and, to proceed with the park as currently envisioned, the City and developer will need to negotiate revised terms. Construction of this park would increase park and field capacity in the City, making it eligible for development impact-fee funding. Master Park, Recreational Facility, and Trails Plan: The City’s 2003 General Plan includes eight elements guiding future growth. Among them, the Parks and Recreation and Open Space Elements are the only two that have not been updated since the plan’s adoption. A key objective of this element was to "optimize the use and development of parks and recreation facilities to serve the existing and projected population" through a comprehensive "Master Park, Recreational Facility, and Trails Plan." This plan was never completed, and as a result, citywide recreational needs have not been fully identified or prioritized. Developing such a plan would enable the City to develop park standards, evaluate user group and maintenance needs, define levels of service, and ensure park resources are managed effectively and sustainably. Updating the general plan elements and developing a comprehensive master plan does not qualify for development impact fee funding and is estimated to cost between $150,000-$300,000. If the City Council approves staff recommendation, staff will bring a funding plan for this work to the City Council as part of the FY 2025-26 budget update in June. The intent is to kick this project off next fiscal year.
Short-Term Opportunities
Based on feedback from user groups and in alignment with long-term planning efforts, staff have identified the following short-term recommendations to enhance the City’s recreational infrastructure.
Implementing these short-term solutions will more immediately address critical capacity and maintenance issues, while allowing adequate time to develop and implement long-term strategies effectively:
Install Sports Field Lighting at Sherwood Park: Adding lights to the two existing soccer fields and two baseball fields at Sherwood Park would significantly increase field availability—potentially adding up to 56.25 additional hours of use per week. This project is eligible for funding through development impact fees. While a detailed cost estimate is still required, preliminary estimates place the total project cost between $1 million and $1.5 million. If the City Council approves staff recommendation, staff will bring a funding plan to the City Council as part of the FY 2025-26 budget update in June.
Renovate Sports Field Turf at Sherwood Park: The condition of the soccer fields and outfields at Sherwood Park has deteriorated due to extensive gopher activity and outdated infrastructure.
While minor turf repairs are planned for June, including a volunteer-led field day, substantial improvements are necessary to restore playability. A full renovation would involve turf replacement and a complete overhaul of the irrigation system. As this project does not expand field capacity, it is not eligible for funding through development impact fees. Preliminary costs are estimated at $1 million to $1.5 million, excluding needed renovations to associated park amenities such as dugouts, the concession stand, scoring booth, basketball and tennis courts, and the parking lot. If the City Council approves staff recommendation, staff will bring a funding plan to the City Council as part of the FY 2025-26 budget update in June. PRJUSD 36th Street (Former Georgia Brown) Campus: The closure of the 36th Street school campus presents a unique opportunity for the Paso Robles Joint Unified School District (PRJUSD) to reimagine land use at this site. With existing field space already in place, one of the options under consideration includes expanding open green space for use by both the District and the broader community. PRJUSD will evaluate this opportunity as part of its strategic planning process. Historically, school open space is prioritized for educational use, with additional access provided through the School Connected Program. In light of the City's growing need for programmable open space, staff recommend the City adopt a policy position supporting the development of publicly accessible fields and green space at this location. If the City Council approves staff recommendation, staff will be in a position to voice the City Council’s general direction in future discussions with the school district. Staff will also provide notice to the school district of this policy position. While PRJUSD does not have any obligation to program the former campus with sports fields and green space, staff recognizes the opportunity that exists in the near term to address field capacity issues and add green space on the west side of the City.
Fiscal Impact
The current balance of the Park and Recreation Development Impact Fee fund is approximately $3.6 million. These fees are collected from property developers to mitigate the impacts of population growth by funding the expansion of public infrastructure and services. As such, development impact fees are designated for projects that increase service capacity and are not intended to address deferred maintenance or repair of existing facilities.