CITY OF RICHMOND
CONTRACT AMENDMENT
Department : Employment and Training Division Project Manager: Fred Lucero Project Manager E-mail: Project Manager Phone No:
[email protected] (510) 621-1562
P.R. No: Vendor No: 8369 P.O./Contract No: /4963
Description of Services:
Alliance Graphics will provide additional graphic arts and products services for the RichmondBUILD Academy.
Amendment No. _]__ modifies the: (2"d or subsequent amendments attach Amendment History page) 0Term , Payment Limit and Service Plan 0 Payment Limit and Service Plan 0Term and Service Plan D Service Plan
The parties to this Contract Amendment do mutually agree and promise as follows:
1. Parties. The parties to this Contract Amendment are the City of Richmond, California, a municipal corporation (City), and the following named Contractor:
Alliance Graphics, Inc .
Company Name:
Street Address: 11 01 - 8th Street
City, State, Zip Code: Berkeley, CA 94710
Contact Person: Nancy lpp oloito
Telephone : (51 0) 845-8835 Email: nancy@union bug.co m Business License No: 40039782 I Expiration Date: July 31, 202 1 A California [{] cor~ration , n limited liability corporation D general partnership , D limited partnership, indivia-ual, D non-profit corporation, D individual dba as specify:]
0 other [specify :]
2. Purpose. This Contract Amendment is being entered into to amend the Contract between City and Contractor which was approved by the City Council of the City of Richmond or executed by the City Manager on October 10, 2019 , which original term commenced ----------~------
on October 1, 2019 and terminates June .30, 2021 with an original ------------------ ------------------
contract payment limit of $8,000.00 . Said contract shall hereinafter be referred to as the "Original Contract" and is incorporated herein by reference .
3. Original Contract Provisions. The parties hereto agree to continue to abide by those terms and conditions of the Original Contract, and any amendments thereto , which are unaffected by this Contract Amendment.
22200157
25391
4. Amendment Provisions. This Contract Amendment is subject to the Amendment Provisions attached hereto , which are incorporated herein by reference, and which control over any conflicting provisions of the Original Contract , or any amendment thereto.
5. City of Richmond Business License Active Status Maintained. Pursuant to Municipal Code Section 7.04.030, the Contractor must ma intain its City of Richmond business license for this Contract Amendme nt to be deemed to be in effect.
6. Insurance Coverage Updated and Maintained. Pursuant to the Original Contract , the Contractor shall provide the City with updated insuranc e certificates , and the Contractor shall maintain insurance coverage, for this Contract Amendment to be deemed to be in effect.
7. Signatures. These signatures attest the parties' agreement hereto:
CITY OF RICHMOND , CALIFORNIA
a municipal corporation
I hereby certify that the Original Contract
and this Amendment have been approved
by the City Council or executed by the City
Manager.
By~#uwit;t
City Clerk ( tef~)
Approved as to form:
~~~~C<~
List of Attachments :
1. Amen dmen t Provisions
2. Updated Insurance Certificates
Contract Amendment/EJ /TE 09-26-07
CONTRACTOR:
Alliance Graphics , Inc.
(*The Corporation Chief Financia l Officer, Secretary or Assistant Secretary should sign on the line below .)
By: ~ .;;~
Title: tf"i?ot.>-...r j
(NOTE : Pursuant to California Corporations
Code Section 313, if Contractor is a
corporation or nonprofit organization, this
Contract (1) should be signed by the
Chairper son of the Board, President or
Vice-President and the Chief Financial
Office r, Secretary or Ass istant Secretary; (2)
should have both signatures conform to
designated represen tative groups pursuant
to Corporations Code Section 313.
Contract Amendment between the City of Richmond and
Alliance Graphics, Inc.
Amendment No.
3 P.O./Contract No.
/4963
AMENDMENT PROVISIONS (PAYMENT LIMIT AND SERVICE PLAN)
1. Paragraph 3 (Payment Limit) of the Original Contract is hereby amended to increase the payment limit by $12,000.00 . Paragraph 3 of the Original Contract is amended to read as follows:
"3. Payment Limit. City's total payments to Contractor under this Contract Amendment shall not exceed $40,000.00 including expenses." "The City of Richmond shall not pay for services that exceed the Contract Payment Limit without the prior written approval of the City Manager if the total Contract amount does not exceed $10,000 or without the prior approval of the City Council if the total Contract amount is over $1 0,000."
2. The Service Plan (Exhibit A) of the Original Contract is hereby amended to include the following tasks and/or services:
• Contractor shall continue to provide additional graphic arts and products services in regards to advertising and promoting the RichmondBUILD Academy as needed , through the end of fiscal year 2021-22.
• Customized printing on tea-shirts , sweatshirts , coffee mugs, bags, pens; embroidery on polo, jackets and other projects as assigned . • Contractor shall perform the services set forth herein at the following location:
1101 8TH STREET, BERKELEY , CA 94710
Contract Amendment/EJ/TE 9-26-07
22200157
Contract Amendment between the City of Richmond and
Alliance Graphics , Inc.
Amendment No.
3 P.O./Contract No.
/4963
AMENDMENT PROVISIONS (AMENDMENT HISTORY)
The first Contract Amendment was approved by City Council of the City of Richmond or executed by the City Manager on 7/21/2020 for one or more of the following provisions (check those that apply):
0 Increased contract payment limit by $ 12,000.00 for a payment limit not to exceed $ 20 000.00 .
0 Term Amendment (insert new termination date):_6_13_0_12_0_2_2 ______ _ 0 Service Plan
The second Contract Amendment was approved by City Council of the City of Richmond or executed by the City Manager on 01-14-2021 for one or more of the following provisions (check those that apply):
0 Increased contract payment limit by $8 ,._...,.,O'""'O ..... O....,..O'""'O'---___ for a payment limit not to exceed $ 28,000.00
0 Term Amendment (insert new termination date): __________ _ 0 Service Plan
The third Contract Amendment was approved by City Council of the City of Richmond or executed by the City Manager on for one or more of the
following provisions (check those that apply):
0 Increased contract payment limit by $ 12,000.00
exceed$ 40 000.00
for a payment limit not to
0 Term Amendment (insert new termination date):. __________ _ 0 Service Plan
The fourth Contract Amendment was approved by City Council of the City of Richmond or executed by the City Manager on for one or more of the following provisions (check those that apply):
D Increased contract payment limit by $ _______ for a payment limit not to exceed$ 40 000.00
D Term Amendment (insert new termination date): __________ _ D Service Plan
The fifth Contract Amendment was approved by City Council of the City of Richmond or executed by the City Manager on for one or more of the
following provisions (check those that apply):
D Increased contract payment limit by $ _______ for a payment limit not to exceed$ 40,000 00
D Term Amendment (insert new termination date): _______ ___ _ D Service Plan
22200157
ACORD® CERTIFICATE OF LIABILITY INSURANCE I
DATE (MM/DDIYYYY)
~ 5/26/20 2 1
THIS CERTIFICATE IS ISS UED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHT S UPO N THE CERTIFICATE HOLDER. THIS
CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND , EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFI CATE OF INSURANCE DOES NOT CONSTITUTE A C ONTRACT BETWEEN THE ISSUING INSURER(S ), AUTHORIZED REPRE S ENTATIVE OR PRODUCER , AND THE CERTI FICATE HOLDER.
IMPORTANT : If the certif icat e holde r i s a n ADDITIONAL INSURED , t he po licy(ies) mus t have ADDITI O NAL INSURED prov is io n s o r b e e ndorsed .
If S UBROGATION IS WAIVED , s ubj ect t o the t e rm s a nd cond itio ns o f the po licy, certa in p o licies may requi re an endo rs eme nt. A s t ate m ent o n this certifi cate does n ot confe r right s to t he c ertif ica te holder in lieu of suc h e ndorsem e nt(s) .
PRODUCER CONTACT
NAME:
r1J8~Jo . Extl: (844) 836-6932 I FAX iAIC Nol: (866 ) 828-24 24 CRIST FRITSCH! & PATERSON INS. AGENT/BROKERS INC E-MAIL Certificate@ Hanove r.com ADDRESS:
101 YGNACIO VALLEY RD.S200 INSURER(S) AFFORDING COVERAGE NAIC# WALNUT CREEK CA 94596 INSURER A : Hanover American Ins Co 36064 INSURED INSURER B : Massachusetts Bay Ins Co 22306
INSURERC : Allmerica Financial Benefit 41840
ALLIANCE GRAPHICS INC INSURERD:
1101 8TH ST INSURERE:
BERKELEY CA 94710 INSURER F :
COVE RAGES CERTIFICATE NUMBER · REVISION NUMBER ·
THI S IS TO CERTI FY THAT THE POLICIES OF INSURANCE LISTED BELOW HAV E B EEN ISSUED TO THE INSURE D NAMED ABOV E FOR TH E POLICY PERIOD INDICATED. NOTWITHS TANDING ANY REQUI REMENT, T ERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMEN T WITH RESPECT TO WHICH THIS
CERTIFICATE MAY BE ISSUE D OR MAY PERTAIN , THE INSURAN CE AFFORD ED BY THE POLICIES DESC RIBED HEREIN IS SUBJ ECT TO A LL THE TERM S, EXCLUS IONS A ND CONDITIONS OF SUC H POLICIES. LIMITS SHOWN MAY HAVE B EEN REDUC ED BY PAID CLAIMS.
INSR TYPE OF INSURANCE ADDL SUBR
~~~hl~~~ 1 1~~~6~~~ LTR I INSD !WVD POLICY NUMBER LIMITS :L COMMERCIAL GENERAL LIABILITY EACH OCCURRENCE $ 2,000,00 0 tJ CLAIMS-MADE [L] OCCUR ~~~G~~~ ~la~~"""~ $ 1,000, 000 --
MED EXP (Any one person) $ 10,00 0
A N N ZZF D205201 04 04/05/20 21 04/05/2022 PERSONAL & ADV INJURY $ 2,0 00,000 r--
=l''L AGGREGATE LIMIT APPLIES PER: GENERAL AGGREGATE $ 4 ,000,000 D PRO- [Z] PRODUCTS- COM PlOP AGG $ INC LUD ED POLICY JECT LOC OTHER: $
AUTOMOBILE LIABILITY fE~~~d~~1f1NGLE LIMIT $ 1,000,000
7 ANYAUTO BODILY INJURY (Per person) $
c r-- OWNED ,-- SCHEDULED N N AWF D695086 02 09/12/2020 09/12/2021 BODILY INJURY (Per accidenl) S 7 AUTOS ONLY
7 AUTOS
HIRED NON-OWNED _fp~?~~~8AMAGE $
r-- AUTOS ONLY r-- AUTOS ONLY
$
UMBRELLA LIAS HOCCUR EACH OCCURRENCE $ r-- EXCESS LIAB CLAIMS-MADE AGGREGATE $ OED I I RETENTION$ $
WORKERS COMPENSATION v'J ~f~ TUTE I I OTH-
AND EMPLOYERS' LIABILITY ER
Y I N 1,000 ,000 B ANYPROPRIETOR/PARTNERIEXECUTIVE
[E) N WDF D299561 05 07/01/2021 07/01/2022 E.L. EACH ACCIDENT $ OFFICER/MEMBER EXCLUDED? N/ A
(Mandatory In NH) E.L. DISEASE- EA EMPLOYE_E $ 1,000,000 ~~~'M?~frJ~ ~~gPERATIONS below E.L. DISEASE- POLICY LIMIT $ 1,000, 0 00 DESCRIPTION OF OPERATIONS I LOCATIONS / VEHICLES (ACORD 101, Addlllonal Remarks Schedule, may be attached lr more space is required)
CERTIFICATE HOLD ER CAN C ELLATION
SHOULD A NY OF THE A BOVE DESCRIBED POLICIES BE CANCELLED BEFORE
THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACC ORDANCE WITH THE POLICY PROVISIONS.
EMPLOYMENT & TRAINING DEPARTMENT
CITY OF RICHMOND AUTHORJZED REPRESENTATIVE
330 - 25TH STREET
~l\)L~-\lo.A RICHMOND CA 94804
I
© 1988-2 01 5 ACORD COR PORAT IO N . All n g hts reserve d .
A CORD 25 (2016/0 3 ) T h e ACORD na m e a nd logo a re re g is te red ma rk s of ACOR D
CITY OF RICHMOND
SHORT FORM CONTRACT
Department: EMPLOYMENT & TRAINING Project Manager: FRED LUCERO Project Manager E-mail: [email protected] Project Manager Phone No: (51 0) 621-1562 PRNo: Vendor No: 8361 P.O./Contract No:
Description of Services:
Alliance Graphics will provide graphic arts and products services for RichmondBUILD Academy.
1. Parties. The parties to this Agreement are the City
of Richmond (herein referred to as the "City") and the
following named Contractor:
(Company) ALLIANCE GRAPHICS, INC.
(Street Address) 1101 8th Street
(City State, Zip Code) Berkeley, CA 94710
(Contract Person) Nancy Ippolito
(E-mail) [email protected]
(Telephone) (51 0) 845-8835
(Fax Number) (51 0) 548-0543
Richmond Business License No. 40039782
Expiration Date: 07/31/2020
2. Term. The effective date of this Agreement
is October 1, 2019
and 1t termlnates.....;:J;_;:;u:;..;..;n:....;:;e__;3:.....;0:.....1.,-=2::...;;:0;..=2:......:.1 _______ _ unless sooner terminated as provided herein.
6. Contractor's Obligations.
To the satisfaction of the City's Project
Manager, Contractor shall provide the
following services:
See Exhibit A
Graphic arts/ products services and other
projects as assigned.
7. Supplemental Conditions. This
Contract is subject to the Supplemental
Conditions and Special Conditions· (if
applicable) attached hereto, which are
incorporated herein by this reference .
8. Insurance Provisions . This Contract is
subject to the Insurance Provisions which
are attached hereto and are incorporated
herein by this reference.
9. Signatures. These signatures attest the
parties' agreement hereto:
CITY:
3. Payment Limit. City's total payment to Contractor CITY OF RICHMOND, CA under this Agreement shall not exceed ($1 0,000 .00) a municipal corporation including expenses unless a contract amendment has ~
been approved by the City Council or City Manager. ~ y: ~ \. {___
4. City's Obligations. City shall pay the Contractor a ,_u~~:ctr.tr-M----'-=-D--.-----------~ not to exceed amount of$ 8,000.00 ff!'' Jty anager or eslgnee Signature as total payment for all services rendered.
5. Location of Services. Contractor shall perform the
services set forth herein at the following location:
Off-site: 1101 8th Street, Berkeley, CA 94710
Short Form Contract/EJ/TE 11-30-07
23393
22001681 / 4963
For the Contract between the City of
Richmond and
ALLIANCE GRAPHICS, INC.
SUPPLEMENTAL CONDITIONS
1. It is expressly agreed that Contractor is to perform the services described herein as an independent contractor pursuant to California Labor Code Section 3353, under the control of the City as to the result of his work only but not as to the means by which such result is accomplished. Nothing contained herein shall in any way be construed to make Contractor or any of its agents or employees, an agent, employee or representative of the City. Contractor shall be entirely responsible for the compensation of any assistants used by Contractor in providing said services.
2. This Contract shall automatically terminate when the total accumulated compensation paid or due to Contractor under this Contract reaches $10,000.00. The City shall not be responsible for compensating Contractor for any amounts in excess of $10,000.00.
3. Either the City or Contractor may cancel this Contract at any time upon giving the other party ten (1 0) days' written notice of such cancellation. In the event of cancellation, the City shall be liable only to pay to the Contractor compensation for services rendered up to the date of the Contract's cancellation.
4. Contractor shall not assign this Contract, or any part thereof, or any right of the Contractor hereunder without the prior written consent of the City.
5. Contractor shall indemnify, defend and hold the City harmless from and against all claims, demands and causes of action for injury, death or damage to any person or property which may arise or result from the contractor's performance of this Contract or from acts or omissions of any person(s) employed by Contractor.
6. Contractor agrees to observe all applicable laws including, but not limited to, the provisions of Section 2.28.030 of the Municipal Code of the City of Richmond obligating every contractor or subcontractor under a contract or subcontract to the City of Richmond for public works or for goods or service to refrain from discriminatory employment practices on the basis of the race, color, sex, sexual orientation, religious creed, national origin or ancestry of any employee of, or applicant for employment with, such contractor or subcontractor.
7. Pursuant to Chapter 7.04 and Section 7.04.160 (f) of the Municipal Code of the City of Richmond, if this Contract does not exceed five thousand dollars ($5,000.00) and if the Contractor does not make more than five thousand dollars ($5,000.00) within the City of Richmond during the fiscal year, then the Contractor shall be exempt from obtaining a City of Richmond business license.
8. If this Contract does exceed five thousand dollars ($5,000.00), or if Contractor does make more than five thousand dollars ($5,000.00) within the City of Richmond during the fiscal year, then a City of Richmond business license shall be obtained before any payment under this Contract shall be authorized and the business license must be kept current during the term of this Contract for payments to continue to be authorized.
Short Form Contract Supplemental Conditions/EJ/TE 11-30-07
EXHIBIT A
SERVICE PLAN
For the Contract between the City of
Richmond and
ALLIANCE GRAPHICS, INC.
Contractor shall, to the satisfaction of the EMPLOYMENT AND TRAINING DEPT. perform the following services and be compensated as outlined below:
Scope of Work
• Provide graphic arts and production services in regards to materials for Richmond BUILD Academy, as needed, though the end of the fiscal year.
• Customized printing and ofT-shirts, sweatshirts, embroidery on polo, jackets and other projects as assigned.
• Contractor shall perform the services set forth herein at the following location:
1101 8TH STREET, BERKELEY, CA 94710
For the Contract between the City of
Richmond and
ALLIANCE GRAPHICS, INC.
EXHIBIT 8
PAYMENT PROVISIONS
{PLEASE NOTE THAT THE CITY OF RICHMOND SHALL NOT PAY FOR SERVICES
THAT EXCEED THE CONTRACT PAYMENT LIMIT UNLESS A CONTRACT
AMENDMENT HAS BEEN APPROVED BY THE CITY COUNCIL OR THE CITY MANAGER}
1. Provided Contractor is not in default under this Contract, Contractor shall be compensated as provided below.
2. Any and all payments made pursuant to this Contract shall be subject to the Contract Payment Limit. The Payment Limit includes expenses (phones, photo copying, meals and travel etc). Invoices, shall be adequately detailed, based on accurate records, and be in a form reasonably satisfactory to the City. Contractor may be required to provide back-up material upon request.
3. Contractor shall submit timely invoices to the following address:
Attention: City of Richmond, Finance Department- Accounts Payable Project Manager: Fred Lucero Department: Employment and Training PO Box 4046
Richmond, CA 94804-0046
4. All invoices that are submitted by Contractor shall be subject to the approval of the City's Project Manager, Fred Lucero before payments shall be authorized.
5. The City will pay invoice(s) within 45 days after completion of services to the City's satisfaction. The City shall not pay late fees or interest.
6. A Richmond business license shall be obtained before any payment under this Contract shall be authorized and the business license must be kept current during the term of this Contract for payments to continue to be authorized.
7. All insurance coverage required by this Contract shall be provided by the Contractor before this Contract shall be executed by the City. The insurance coverage must be kept current during the term of this Contract for payments to continue to be authorized.
For the Contract between the City of
Richmond and
ALLIANCE GRAPHICS, INC.
SPECIAL CONDITIONS
The Supplemental Conditions of the Short Form Contract are hereby amended to include the following modifications:
There are no Special Conditions under this contract.
Short Form Contract Supplemental Conditions/EJ/TE 11-30-07
For the Contract between the City of
Richmond and
Alliance Graphics, Inc.
INSURANCE PROVISIONS
During the entire term of this Contract and any extension or modification thereof, the CONTRACTOR shall keep in effect insurance policies meeting the insurance requirements specified in the insurance provisions which are attached hereto and incorporated herein by this reference.
Short Form Contract Insurance Provisions/EJ/TE 11-30-07
City of Richmond -Insurance Requirements- Type 1:
Consultants and Contractors
Exhibit F
Section 8
In all instances where a CONTRACTOR or its representatives will be conducting business and/or providing services, the City requires the following MINIMUM insurance requirements and limits.
CONTRACTOR shall procure and maintain for the duration of the contract, agreement, or other order for work, services or supplies, insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder and the results of that work by the CONTRACTOR, its agents, representatives, employees or subcontractors. Maintenance of proper insurance coverage is a material element of the contract. Failure to maintain or renew coverage or to provide evidence of renewal may be treated by the City as a material breach of contract.
CONTRACTOR agrees that in the event of loss due to any of the perils for which it has agreed to provide Commercial General Liability insurance, CONTRACTOR shall look solely to its insurance for recovery. CONTRACTOR hereby grants to CITY, on behalf of any insurer providing Commercial General Liability insurance to either CONTRACTOR or CITY with respect to the services of CONSULTANT herein, a waiver of any right to subrogation which any such insurer of said CONTRACTOR may acquire against the CITY by virtue of the payment of any loss under such insurance.
Original, signed certificates and original, separate policy endorsements, naming the City as an additional insured for general liability, as well as a waiver of subrogation for Workers' Compensation insurance, shall be received and approved by the City before any work may begin. However, failure to do so shall not operate as a waiver of these insurance requirements.
City reserves the right to modify or require additional coverages for specific risk exposures depending on scope of CONTRACTORS work.
Minimum coverage is detailed below. The policy limits of coverage shall be made available to the full limits of the policy.
The minimum limits stated herein shall not serve to reduce the policy limits of coverage of CONTRACTOR.
Minimum Scope of Insurance - the following forms shall be provided and coverage shall be at least as broad as the following:
1. Insurance Services Office Commercial General Liability coverage (ISO Occurrence Form CG 0001) including coverage for bodily and personal injury, property damage, and products and completed operations.
2. Insurance Services Office Automobile Liability coverage (ISO Form CA 0001, Code 1, Any Auto)
3. Original and Separate Additional Insured Endorsements for General Liability (ISO Form CG 20 10 11/85 or its equivalent) with primary and non -contributory language.
4. Workers' Compensation Insurance as required by the State of California including Employer's Liability coverage .
5. Original and Separate Waiver of Subrogation for Workers' Compensation and Builder's Risk/ Course of Construction Insurance.
6. Builder's Risk/Course of Construction insurance covering all risks of loss less policy exclusions when the City of Richmond has a financial interest in the property. - (Only required for Construction Contracts involving property)
7. Contractor's Pollution Liability (if applicable for Construction Contractors) Required Coverage Minimum Limits
Workers' Compensation and
Employers' Liability
Revised: September 2011
Statutory limits as required by the State of California including $1 million Employers' Liability per accident, per employee for bodily injury or disease.
If CONTRACTOR is self-insured, provide a certificate of Permission to Self Insure, signed by the California Department of Industrial Relations and Self Insurance. If contractor is a sole proprietor (has no employees) than contractor must sign "Contractor Release of Liability" found at:
http: //www.ci.richmond.ca. us/index.aspx?nid= 61 .
Type 1 - Page 1 of 4
x
Exhibit F
Section 8
City of Richmond -Insurance Requirements- Type 1:
Consultants and Contractors
General Liability
(primary and excess limits
combined)
Automobile Liability
Builders' Risk/Course of
Construction - Covers property
under construction/ repair or
renovation as well as equipment
and materials to be installed.
{Only required for Construction
Projects involving property and
equipment installation.)
Contractor's Pollution Liability (if
applicable)
Protects against:
unexpected/unintended release of
pollution resulting from contractors
covered operations such as:
HVAC1 paving/ carpentry/ pipeline
& tank installation/ drillers/
remediation contractors/
maintenance/ mechanical/
demolition/ excavation/ grading 1
street/road construction/
residential & commercial builders.
Required Policy Conditions
A. M. Best Rating
Additional Insured Endorsement
Revised: September 2011
PROJECT COST REQUIRED LIMIT
----------------------------------------- -----------------------------------------$0- $5 million $2 million p/o ~ ~ ~~ ~ ~ ~ ~ 1~ ~~i}l}?~~ :~ ~j~~ ~ ~i}l}?!i~ ~ ~ ~ ~ ~~ ~ ~ ~ ~ ~~ ~ ~ ~ ~ ~ ~ ~ ~ i~ ~~~ii11?~~ rZ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ------------<.?~<::~-~ ~9- ~!IJ~~~--- --------- ------------ -~ ~9- ~!IJ~~~J?{?_------------ Fireworks $5 million pjo
Includes coverage for bodily injury/ personal injury 1 property damage and products and completed operations. The policy shall not exclude coverage for XCU perils (explosion/ collapse/ or damage to underground property).
If the policy includes a general aggregate/ either the general aggregate shall apply separately to this project 1 service or location or the minimum required aggregate limit shall be twice the per occurrence limit ($4 million aggregate limit).
·Policy shall be endorsed to name the City of Richmond as an additional insured per the conditions detailed below.
$1,000,000 per occurrence for bodily injury and property damage.
Coverage shall include all risks of direct physical loss1 excluding earthquake/ for an amount equal to the full completed value of the covered structure or replacement value of alterations or additions, including soft costs and business interruption.
If the project does not involve new or major reconstruction/ an Installation Floater may be acceptable. For such projects 1 a property installation floater shall be obtained that provides for the improvement/ remodel/ modification/ alteration/ conversion or adjustment to existing buildings/ structures/ processes 1 machinery and equipment. The Property Installation Floater shall provide property damage coverage for any building 1 structure 1 machinery or equipment damaged 1 impaired/ broken or destroyed during the performance of the Work 1 including during transit 1 installation and testing at the City of Richmond's site.
The City of Richmond shall be named as loss payee as its interest may appear. The insurer shall waive all rights of subrogation against City.
Same limits as General Liability.
A:VII or Better. If the A.M. Best Rating falls below the required rating 1 CONTRACTOR must replace coverage immediately and provide notice to City.
Applicable to General Liability Coverage.
The City of Richmond 1 its officers 1 officials 1 employees/ agents and volunteers are to be named as additional insureds for all liability arising out of the operations by or on behalf of the named insured/ including but not limited to bodily injury 1 deaths and property damage or destruction arising in any respect directly or indirectly in the performance of this contract.
ISO form CG 20 10 (11/85) or its equivalent is required. The endorsement must not exclude products and completed operations coverage. If it does, then CG 20 37 (10/01) is also required.
Type 1 - Page 2 of 4
Exhibit F
Section 8
City of Richmond - Insurance Requirements- Type 1:
Consultants and Contractors
Additional Insured Endorsement SAMPLE Endorsements can be found at (continued) htt11.: LLwww.ci.richmond.ca.usLindex.asl1.x?nid=61 Primary and Noncontributory The contractor's insurance coverage must be primary coverage as it pertains to the City, its officers, officials, employees, agents and volunteers. Any insurance or self insurance maintained by the City is wholly separate from the insurance of the contractor and in no way relieves the contractor from its responsibility to provide insurance.
Waiver of Subrogation Contractor's insurer will provide a Waiver of Subrogation in favor of the City Endorsement Form for Workers Compensation and Builder's Risk/ Course of Construction coverage during the life of this contract.
SAMPLE Endorsements can be found at
htt11.:LLwww.ci.richmond.ca.usLindex.asl1.x?nid=61
Deductibles and Self-Insured Any deductible or self-insured retention must be declared to and approved Retentions by the City. At the option of the City either the insurer shall reduce or eliminate such deductibles or self-insured retention as respects the City or the CONTRACTOR shall procure a financial guarantee in an amount equal to the deductible or self-insured retention guaranteeing payment of losses and related investigations, claims administration and defense expenses.
Contractor is responsible for satisfaction of the deductible and/or self-insured retention for each loss.
Loss Payable Endorsement (only Applicable to Builder's Risk/Course of Construction naming the City of required when Builder's Risk Richmond as Loss Payee.
and/ or Course of Construction
Insurance is required.)
SURETY BONDS The Contractor shall provide:
(If a Public Works/Engineering 1. A Bid bond
Project) 2. A Performance Bond
3. A Payment Bond
Umbrella/Excess Liability Policies
If an Umbrella or Excess Liability Policy is used to meet the liability limits, coverage shall be as broad as specified for underlying coverages and cover those insured in the underlying policies.
Claims-Made Policies
If any insurance policy is written on a claims-made form: 1) the retroactive date must be shown, and must be before the date of the contract or the beginning of contract work. 2) Insurance must be maintained and evidence of insurance must be provided for at least five (5) years after completion of the contract of work. 3) If coverage is canceled or non renewed, and not replaced with another claims-made policy form with a retroactive date prior to the contract effective date, the Contractor must purchase an extended period coverage for a minimum of five (5) years after completion of contract work.
Subcontractors
CONTRACTOR shall include all subcontractors as insured under its policies or shall furnish to the City for review and approval, separate certificates and endorsements for each subcontractor. All coverage for subcontractors shall be subject to all of the requirements stated herein.
CONTRACTOR agrees to defend and indemnify the City of Richmond for any damage resulting to it from failure of either CONTRACTOR or any subcontractor to take out or maintain the required insurance policies. The fact that insurance is obtained by CONTRACTOR, and/or CONTRACTOR's subcontractors, will not be deemed to release or diminish the liability of CONTRACTOR, including, without limitation, liability under the indemnity provisions of this contract. Damages recoverable by CITY from CONTRACTOR or any third party will not be limited by the amount of the required insurance coverage.
Type 1 - Page 3 of 4
Revised: September 2011
City of Richmond -Insurance Requirements- Type 1:
Consultants and Contractors
Verification of Coverage
Exhibit F
Section 8
All original certificates and endorsements shall be received and approved by the City before work may begin. The City of Richmond reserves the right to require complete, certified copies of all required insurance policies including endorsements affecting the coverage at any time.
Original insurance certificates and required policy endorsements shall be mailed, or delivered to the Designated Project Manager for the City of Richmond.
Insurance certificates and endorsements may be faxed to the Designated Project Manager. However, Contractor must mail the original certificates and endorsements to Designated Project Manager once faxed.
Continuous Coverage
CONTRACTOR shall maintain the required insurance for the life of the contract. Should the CONTRACTOR cease to have insurance as required during this time, all work by the CONTRACTOR pursuant to this agreement shall cease until insurance acceptable to the City is provided. In the event that CONTRACTOR fails to comply with the City's insurance requirements, the City may take such action as it deems necessary to protect the City's interests. Such action may include but is not limited to termination of the contract, withholding of payments, or other actions as the City deems appropriate.
If services or the scope of work extend beyond the expiration dates of the required insurance policies initially approved by the City, CONTRACTOR must provide updated certificates and endorsements indicating that the required coverage, terms and conditions are still in place. Renewal certificates and updated endorsements shall be mailed to the Designated Project Manager.
Cancellation
CONTRACTOR shall ensure that coverage shall not be cancelled, reduced or otherwise materially changed except after thirty (30) days' prior written notice has been given to the City.
Reporting Requirements
Any failure to comply with reporting or other provisions of the policies including breaches of warranties shall not affect coverage provided to the City, its officers, officials, employees or volunteers.
Consistent with Public Policy
The insuring provisions, insofar as they may be judged to be against public policy shall be void and unenforceable only to the minimum extent necessary so that the remaining terms and provisions herein may be consistent with public policy and thus enforceable.
Type 1 Page 4 of 4
Revised: September 2011
ACORD® CERTIFICATE OF LIABILITY INSURANCE I
DATE (MM/DD/YYYY)
~ 10/4/2019
THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS
CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER.
IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must have ADDITIONAL INSURED provisions or be endorsed.
If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s).
PRODUCER CONTACT
NAME:
rfigNrfo Extl: (844) 836-6932 I FAX iAJC No): (866) 828-2424 CRIST FRITSCH! & PATERSON INS. AGENT/BROKERS INC E-MAIL [email protected] ADDRESS:
101 YGNACIO VALLEY RD.S200 INSURER(S) AFFORDING COVERAGE NAIC# WALNUT CREEK CA 94596 INSURER A: Hanover American Ins Co 36064 INSURED INSURERS: Massachusetts Bay Ins Co 22306
INSURERC: Allmerica Financial Benefit 41840
ALLIANCE GRAPHICS INC INSURERD:
1101 8TH ST INSURERE:
BERKELEY CA 94710 INSURERF:
COVERAGES CERTIFICATE NUMBER: REVISION NUMBER:
THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS
CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS.
INSR ADDL SUBR
~~a}-6%~~ rtOLICY EXP LTR TYPE OF INSURANCE IINSD lwvo POLICY NUMBER MM/DD/YYYYI LIMITS _L COMMERCIAL GENERAL LIABILITY EACH OCCURRENCE $ 2,000,000 LJ CLAIMS-MADE [ZJ OCCUR DAMAGE TO RENTED
PREMISES (Ea occurrence\ $ 1,000,000
-
MED EXP (Any one person) $ 10,000 -
A y N ZZF D205201 02
t---
04/05/2019 04/05/2020 PERSONAL & ADV INJURY $ 2,000,000 GEN'LAGGREGATE LIMIT APPLIES PER: GENERAL AGGREGATE $ 4,000,000 R DPRC> [£] LOC PRODUCTS-COMP/OP AGG $ INCLUDED POLICY JECT OTHER: $
AUTOMOBILE LIABILITY fE~~~~~RtfiNGLE LIMIT $ 1,000,000
t---
,/ ANYAUTO BODILY INJURY (Per person) $
c r-=-- OWNED - SCHEDULED y N AWF D695086 01 09/12/2019 09/12/2020 BODILY INJURY (Per accident) $ AUTOS ONLY AUTOS 7 HIRED 7 NON-OWNED rp~~~&:~Je~RAMAGE $
r-=-- AUTOS ONLY --=--- AUTOS ONLY
$
UMBRELLA LIAB H OCCUR EACH OCCURRENCE $ I--
EXCESS LIAB CLAIMS-MADE AGGREGATE $
DED I I RETENTION$ $
WORKERS COMPENSATION ,/I tf~TUTE I I OTH-
AND EMPLOYERS' LIABILITY ER
Y/N
8 ANYPROPRIETOR/PARTNER/EXECUTIVE
[YJ N/A N WDF D299561 03 07/01/2019 07/01/2020 E.L. EACH ACCIDENT $ 1,000,000 OFFICER/MEMBER EXCLUDED?
(Mandatory in NH) E.L. DISEASE· EA EMPLOYEE $ 1,000,000 If yes, describe under
E.L. DISEASE· POLICY LIMIT $ 1,000,000 DESCRIPTION OF OPERATIONS below DESCRIPTION OF OPERATIONS I LOCATIONS I VEHICLES (ACORD 101, Additional Remarks Schedule, may be attached if more space is required) The City of Richmond, its officers, officials, employees, agents and volunteers are Additional Insured on the General Liability and Auto Liability pursuant to the terms and conditions by form 421-2915 and by form CA0001. Additional Insured is Primary and Noncontributory to the extent provided by form 421-2915. Cancellation Notice will be provided to the Certificate Holder pursuant to endorsement: 401-1235. Such notice is solely for the purpose of informing the Certificate Holder of the effective date of cancellation and does not grant, alter, or extend any rights or obligations under this policy.
CERTIFICATE HOLDER CANCELLATION
SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE
THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS.
CITY OF RICHMOND
EMPLOYMENT & TRAINING DEPARTMENT AUTHORIZED REPRESENTATIVE 330-25TH ST c-) . >{( =*
RICHMOND CA 94804 (~}jttlt"L~:~-' {__Q_~
I
© 1988-2015 ACORD CORPORATION. All rights reserved.
ACORD 25 (2016/03) The ACORD name and logo are registered marks of ACORD Page 602 of 827
March 15, 2022
Department
DATE: March 15, 2022
TO: Mayor Butt and Members of the City Council
FROM:
(List all relevant/responsive staff
persons)
Tom Butt, Mayor
Subject:
(This will appear on the agenda)
Appointment(s) to the Zhousan Sister City Commission
FINANCIAL IMPACT: There are no financial impacts related to this item.
PREVIOUS COUNCIL
ACTION:
(List all dates items were heard or
council action took place)
None
STATEMENT OF THE
ISSUE:
Actions are required to update, and make current, the
appointment roster of the Richmond-Zhoushan Sister
City Commission. There are 11 seats on the commission,
of which 4 are currently vacant.
RECOMMENDED ACTION:
(This will appear on the agenda)
APPROVE appointment(s) to the Richmond-Zhoushan
Sister City Commission; APPOINT Ed Medina, new
appointment, seat #7, term expiration date December 31, 2024; Jason Tran, new appointment, seat #9, term
expiration date December 31, 2024 – Office of the Mayor (Mayor Tom Butt 510-620-6503).
AGENDA
REPORT
March 15, 2022
DISCUSSION:
The following individual(s) are being appointed to the commission:
Ed Medina is being appointed to seat #7 for his first term on the Richmond-Zhoushan Friendship Commission. Mr. Medina is a retired Police Chief for Richmond PD. His term will expire December 31, 2024.
Jason Tran is being appointed to seat #9 for his first term on the Richmond-Zhoushan Friendship Commission. Mr. Tran is employed as an architect. His term will expire December 31, 2024.
DOCUMENTS ATTACHED:
Attachment 1 – Redacted application for Ed Medina
Attachment 2 – Redacted application for Jason Tran
March 15, 2022
Department
DATE: March 15, 2022
TO: Mayor Butt and Members of the City Council
FROM:
Tom Butt, Mayor
Subject:
APPOINTMENT(S) TO THE PERSONNEL BOARD
FINANCIAL IMPACT: There are no financial impacts related to this item.
PREVIOUS COUNCIL
ACTION:
None
STATEMENT OF THE
ISSUE:
Actions are required to update, and make current, the
appointment roster of the Personnel Board. There are
five seats on the Personnel Board, of which 3 are
appointed by the City Council, and 2 by employee
election. Currently, there are 2 vacancies; 1 Council
appointed, and 1 employee elected.
RECOMMENDED ACTION:
APPROVE appointment(s) to the Personnel Board:
APPOINT Larry Wirsig, new appointment, seat #3,
Council appointed, term expiration December 31, 2027;
APPOINT Vernetta Buckner, new appointment, seat #5,
Council appointed, term expiration December 31, 2027 -
Office of the Mayor (Mayor Tom Butt 620-6503).
AGENDA
REPORT
March 15, 2022
DISCUSSION:
Larry Wirsig is being appointed to seat #3, a Council appointed seat, for his first term on the Personnel Board. Mr. Wirsig is a Richmond resident, who is self-employed and owns All Bay Concrete Pumping. His term will expire December 31, 2027.
Vernetta Buckner is being appointed to seat #5, a Council appointed seat, for her first term on the Personnel Board. Ms. Buckner is a Richmond resident, who is self- employed and owns Netta’s Kid’z, daycare. Her term will expire December 31, 2027.
DOCUMENTS ATTACHED:
Attachment 1 – Redacted application for Larry Wirsig.
Attachment 2 – Redacted application for Vernetta Buckner
March 15, 2022
Department
DATE: March 15, 2022
TO: Mayor Butt and Members of the City Council
FROM:
Tom Butt, Mayor
Subject:
Appointment(s) to the Community Police Review
Commission
FINANCIAL IMPACT: There are no financial impacts related to this item.
PREVIOUS COUNCIL
ACTION:
None
STATEMENT OF THE
ISSUE:
Actions required to update, and make current, the
appointment roster of the Citizens Police Review
Commission. There are currently 9 total seats on the
commission of which 1 is vacant.
RECOMMENDED ACTION:
APPROVE appointment(s) to the Community Police
Review Commission. APPOINT Steven Lacy, re-
appointment, seat #7, term expiration date November 1,
2024-Office of the Mayor (Mayor Tom Butt 620-6503).
AGENDA
REPORT
March 15, 2022
DISCUSSION:
Steven Lacy is being re-appointed to seat #7 for his second term on the Citizens Police Review Commission. Mr. Lacy is a longtime Richmond resident. His term will expire November 1, 2024.
DOCUMENTS ATTACHED:
Attachment 1 – Redacted application for Steven Lacy
March 15, 2022
Department
DATE: March 15, 2022
TO: Mayor Butt and Members of the City Council
FROM:
Tom Butt, Mayor
Subject:
Appointment(s) to Update the Design Review Board
FINANCIAL IMPACT: There are no financial impacts related to this item.
PREVIOUS COUNCIL
ACTION:
None.
STATEMENT OF THE
ISSUE:
Actions are required to update, and make current, the
appointment roster of the Design Review Board. There
are seven seats on this board of which 2 are vacant.
RECOMMENDED ACTION:
APPROVE an appointment to the Design Review Board:
APPOINT Marcus Christeson, new appointment, seat #6,
term expiration date of March 17, 2024-Office of the
Mayor (Mayor Tom Butt 620-6503).
AGENDA
REPORT
March 15, 2022
DISCUSSION:
Marcus Christeson is being appointed to seat #6 for her first term on the Design Review Board. Ms. Hook is a Richmond resident and is employed with Bayer Engineering and Technology as a Project Engineering Document Controller. His term will expire on March 17, 2024.
DOCUMENTS ATTACHED:
Attachment 1 – Redacted application for Marcus Christeson
March 15, 2022
Department
DATE: March 15, 2022
TO: Mayor Butt and Members of the City Council
FROM:
Tom Butt, Mayor
Subject:
Appointment(s) to the Library Commission
FINANCIAL IMPACT: There are no financial impacts related to this item.
PREVIOUS COUNCIL
ACTION:
None
STATEMENT OF THE
ISSUE:
Actions are required to update, and make current, the
appointment roster of the Library Commission. There are five seats on this commission, of which 2 are vacant.
RECOMMENDED ACTION:
APPROVE appointment(s) to update the Library
Commission:
APPOINT Thomas Kaun new appointment, seat #3, term
expiration date July 1, 2025-Office of the Mayor (Mayor Tom Butt).
AGENDA
REPORT
March 15, 2022
DISCUSSION:
Thomas Kaun is being appointed to seat #3 for his first term on the Library Commission.
Mr. Kaun is a Richmond resident and a retired school librarian. His term will expire July 1, 2025.
DOCUMENTS ATTACHED:
Attachment 1 – Redacted application for Thomas Kaun
March 15, 2022
Department
DATE: March 15, 2022
TO: Mayor Butt and Members of the City Council
FROM:
Tom Butt, Mayor
Subject:
Appointment(s) to the Urban Forest Advisory Committee
FINANCIAL IMPACT: There are no financial impacts related to this item.
PREVIOUS COUNCIL
ACTION:
None
STATEMENT OF THE
ISSUE:
Actions are required to update, and make current, the
appointment roster of the Urban Forest Advisory
Committee. There are 11 seats on the committee of
which 3 are currently vacant.
RECOMMENDED ACTION:
APPROVE appointment(s) to the Urban Forest Advisory
Committee: APPOINT Robert Stanley, new appointment,
seat #4, term expiration date November 17, 2024:
Stewart Winchester, new appointment, seat #8, term
expiration date November 17, 2024-Office of the Mayor
(Mayor Tom Butt 620-6503)
AGENDA
REPORT
March 15, 2022
DISCUSSION:
Robert Stanley is being appointed to seat #4 for his first term on the Urban Forest Advisory Committee. Mr. Stanley is a Richmond resident who is employed with the State as a Biologist/Environmental Scientist. His term will expire on November 17, 2024.
Stewart Winchester is being re-appointed to seat #8 for his third term on the Urban Forest Advisory Committee. Mr. Winchester is a longtime Richmond resident who is a college professor at Merritt College. His term will expire on November 17, 2024.
DOCUMENTS ATTACHED:
Attachment 1 – Redacted application for Robert Stanley
Attachment 2 – Redacted application for Stewart Winchester
March 15, 2022
Public Works
DATE: March 15, 2022
TO: Mayor Butt and Members of the City Council
FROM:
Joe Leach, Director of Public Works
Subject:
Appropriate Revenues and Expenditures Related to Plan
Review and Inspection Services for Development
Projects
FINANCIAL IMPACT: Costs for consultant services will be covered by fees collected by development projects; therefore, there would be no impact to the general fund for this action. Funds would be collected prior to authorizing consultant work. (Revenue – 01231131-340401 and Expense –
01231131-400201)
PREVIOUS COUNCIL
ACTION:
STATEMENT OF THE
ISSUE:
Due to staffing shortages, the Public Works department
is needing to contract certain plan review and inspection services to its on-call consultants. Therefore, the Public Works department is requesting authorization to
appropriate revenues and expenditures related to plan
review and inspection services for development projects into its fiscal year 2021-2022 budget.
RECOMMENDED ACTION:
ADOPT a resolution for authorization to appropriate
$175,000 in revenues and $175,000 in expenditures
related to plan review and inspection services for
development projects into the Public Works Department
fiscal year 2021-2022 budget – Public Works (Joe Leach
620-5478).
AGENDA
REPORT
March 15, 2022
DISCUSSION:
Due to staffing shortages, the Public Works department is needing to contract certain plan review and inspection services to its on-call consultants. Therefore, the Public Works department is requesting authorization to appropriate revenues and expenditures related to plan review and inspection services for development projects into its fiscal year 2021-2022 budget. Funds will be collected from applicants seeking permits from the Public Works department that require plan review and related inspections to cover the costs of consultants completing the plan review and inspections services.
There are several large development projects, including the new construction of industrial projects and residential subdivisions, that will require plan review of improvements drawings, final maps, utility connections, and public right-of-way improvements, and due to staffing shortages, the Department needs to appropriate revenues and expenditures related to these activities to be able to rely on on-call consultant services to provide temporary assistance in these activities.
DOCUMENTS ATTACHED:
Attachment 1 – Resolution for Authorization to Appropriate Revenues and Expenditures
Reso. No. ___
RESOLUTION NO. _ _ _ _ _ _ _ _ _
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RICHMOND, CALIFORNIA
FOR AUTHORIZATION TO APPROPRIATE REVENUES AND EXPENDITURES
RELATED TO PLAN REVIEW AND INSPECTION SERVICES FOR DEVELOPMENT
PROJECTS
WHEREAS, the Public Works Department, specifically Engineering, requires plan review and inspections for development projects, including subdivision maps, improvements plans, utility connections, and public right-of-way improvements; and
WHEREAS, the Public Works Department sometimes needs to rely on consultants to assist in plan review and hold several on-call consultants to provide this services; and
WHEREAS, the Public Works Department has adopted plan review fees associated with development projects as part of the City Master Fee schedule.
NOW, THEREFORE, BE IT RESOLVED THAT, the City Council of the City of Richmond finds the above recitals accurate and with the Agenda Report serve as the basis for the findings and approvals set forth in this Resolution.
BE IT FURTHER RESOLVED THAT, the City Council hereby appropriates revenue and expenditures related to Plan Review and inspection services into the Public Works fiscal year 2021/22 budget.
*********************
I certify that the foregoing resolution was passed and adopted by the City Council of the City of Richmond at a regular meeting thereof held _______________ , 2022, by the following vote:
AYES:
NOES:
ABSTENTIONS:
ABSENT:
CLERK OF THE CITY OF RICHMOND
(SEAL)
Approved:
Mayor
Approved as to form:
Interim City Attorney
March 15, 2022
Public Works
DATE: March 15, 2022
TO: Mayor Butt and Members of the City Council
FROM:
Joe Leach, PE, Director of Public Works
Subject:
Contract Amendment for NCE Engineering On-call
Professional Services
FINANCIAL IMPACT: Funding sources for individual work authorizations under on-call professional services contracts include Federal and State grants and Measure J funds. Amending the
NCE on-call professional services contract will not impact the General Fund.
PREVIOUS COUNCIL
ACTION:
Click or tap here to enter text.
STATEMENT OF THE
ISSUE:
Staff recommends amending NCE (formerly Richmond
Engineering Consultant Company) on-call professional
services contract to increase contract capacity for
ongoing engineering design services
RECOMMENDED ACTION:
APPROVE a resolution amending NCE (Richmond
Engineering Consultant Company) on-call professional
services contract to increase their contract funding capacity by $2,060,000, to an amount not to exceed $3,860,000 - Public Works Department (Joe Leach 620-5478).
AGENDA
REPORT
March 15, 2022
DISCUSSION:
Utilization of on-call professional services contracts is critical to the successful completion of myriad City projects. The City issues Requests for Qualifications/Proposals for specialty services, and subsequently issues three-year on- call professional services contracts to the most qualified firms. Keeping current on-call professional services lists saves time and money when hiring qualified firms for specialty work, eliminating the need to go through a six-month procurement process each time professional services are needed. When City staff identifies a need for specialized professional services on a particular project, the City requests cost proposals for that work from the pre-qualified firms on the specialized on-call list of firms. The proposals are evaluated, and the City issues a Work Authorization to the firm that provided the best proposal for that work.
The Public Works Department, in its capacity as the steward of public facilities such as roadways, parks and other City facilities, will continue to manage the various on-call professional services contracts.
Below is the list of NCE On-Call Projects under design development:
Project Name Current Design
Scope
Future Scope Stages Additional Funding
Via Verdi Construction Rheem Creek
Mitigation Site
Construction
Documents, permitting
and Construction
Support
400,000
Staff will come before
Council later with detailed
discussion of funding for the
entire project
Central Ave at I-80 Construction and
Environmental
Documents
Investigation Phase
Final Construction and
Environmental
Documents, ROW
Phase and
Construction Support
850,000
Account String
20236031-400708-29110
13th Street
Complete Project
Construction
Documents
Construction Support 100,000
Account String
20236031-400733-29120
Dornan Dr. Sewer
Line Replacement
Construction
Document
Construction Support 100,000
Account String
40322931-400708-01Z10
Yellow Brick Road Construction Additional Construction
Support
60,000
Account String
11731331-400708-29113
Point Molate
Shoreline
Restoration
Construction and
Environmental
Documents,
Permitting
Additional Permitting 100,000
Account String
20136031-400708-01A14
March 15, 2022
Keller Beach
Sewer
Replacement
Feasibility Studies Project Development
Scope
200,000
Account String
40322931-400733-01C08
Staff
Augmentation
Not Currently
Providing
Staff Augmentation for
1 year, 3 days a week
250,000
From Engineering salary
savings
Account string TBD
Total $2,060,000
It should be noted that staff will bring a subsequent City Council item regarding the Via Verde Project, including construction status, funding sources, City obligations and additional regulatory requirements.
The proposed resolution (Attachment 1) and the contract amendment (Attachment 2) are attached. The final form of the contract amendment with each firm will be reviewed and approved by the City Attorney prior to execution.
DOCUMENTS ATTACHED:
Attachment 1 – Resolution
Attachment 2 – Contract Amendment
RESOLUTION NO. _____
RESOLUTION OF THE COUNCIL OF THE CITY OF RICHMOND, CALIFOR NIA,
AUTHORIZING A THIRD AMENDMENT TO NCE ON-CALL PROFESSIONAL
SERVICE S CONTRACT TO INCREASE THE CONTRACT NOT-TO-EXCEED AMOUNT BY $2,060,000 TO A TOTAL OF $3,860,000 FOR THE REM AINDER OF
THE FIVE YEAR CONTRA CT
______________________________ _______________________________ _____________ WHEREAS, the Richmond Public Works Department has numerous capital improvement projects funde d by Federal and State Grants , Measure J Funds , and Wastewater Bonds that require the use of On Call Professional Services; and WHEREAS, on May 18, 2018, NCE (Richmond Engineering Consultant Company) was one of the five On -Call Professional Services consultants selected for a three-year contract with an option for two additional years: and
WHEREAS, NCE is the Designer of Record of several multi -year design development and Capital Improvement Program projects ; and WHEREAS, some of these projects are already in construction and still req uire NCE construction support ; and
WHEREAS, other projects are in the middle of their project development process es that require additional NC E Professional Services to get the projects to completion ; and WHEREAS, NCE current funding allocation is nearly depleted to continue delivering the projects on schedule; and
WHEREAS, staff is now seeking Council approval to increase by $2,060,000 the amount of NCE Service Contract for a total not -to-exceed amount of $3,860,000 , and to add to the scope of s ervices for the rem ainder of the NCE contract as shown on Exhibit 1 ; and
WHEREAS, the Richmond Public Works Department will continue to efficiently manage the NCE contract, as amended.
NOW, THEREFORE, BE IT RESOLVED that the Council of the City of Richmond, California, hereby authorizes the Richmond Public Works Department to amend the NCE contract by $2,060,000 to an amount not to exceed $3,860,000.
*********************************
I certify that the foregoing Resolution was adopted by the Council of the City of Richmond at a regular meeting held on March 22, 2022 by the following vote:
AYES:
NOES:
ABSTAINS:
ABSENT:
Clerk of the City of Richmond
[SEAL]
Approved:
Mayor
Approved as to form:
City Attorney
03/15/2022
Public Works
DATE: March 15, 2022
TO: Mayor Butt and Members of the City Council
FROM:
Joe Leach, PE, Director of Public Works
Subject:
Harbour-8 Park Expansion – Land Donation for Subject
FINANCIAL IMPACT: There is no purchasing cost associated with receiving the donated land.
PREVIOUS COUNCIL
ACTION:
Click or tap here to enter text.
STATEMENT OF THE
ISSUE:
City staff seeks adoption of a resolution to facilitate the design and build of the Harbour-8 Park Expansion
Project on the Richmond Greenway located at Harbour
Way and 8th Street, APN 538-420-001.
RECOMMENDED ACTION:
ADOPT a resolution authorizing the city manager or their designee to execute all required documents to facilitate the acceptance of the 6,800-sf land donation by POGO
Park - Public Works Department (Joe Leach 510-620-
5478/Greg Hardesty 510-620-6920).
DISCUSSION:
The City of Richmond received a State Proposition 68 Grant in the amount of $8,500,000 to design and build the Harbour-8 Park Expansion Project on the Richmond Greenway located at Harbour Way and 8th Street, APN 538-420-001. During the AGENDA
REPORT
03/15/2022
design development process, it was realized that for the park to function properly, some of the park elements will need to be on land owned by POGO Park. In order to facilitate this, POGO Park has agreed to donate the land (approximately 6,800-sf) to the City to allow some of the park elements to be built on this land, and thereby also increasing the park area.
Working in concert with community residents and on behalf of the City, Pogo Park submitted a successful $8.5 million "Prop 68" grant application to the State of California Parks and Recreation Department for the Harbour-8 Expansion Project. The project will expand the current Harbour-8 Park by acquiring a portion of the properties located at 823 and 909 Ohio Avenue. The redesigned park will include a community hall, children’s play area, restroom, picnic area, bike and walking paths, lighting, public art, security cameras, and landscaping.
In order to move forward with the project, staff recommends approval of the acceptance of the POGO park land donation.
DOCUMENTS ATTACHED:
Attachment 1 – Resolution
Attachment 2 – Exhibit 1
RESOLUTION NO. _______
A RESOLUTION OF THE CITY COUNCIL OF THE CITY RICHMOND TO
AUTHORIZE AND ACCEPT THE LAND DONATION FROM POGO PARK
TO THE CITY FOR THE HARBOUR-8 PARK EXPANSION PROJECT
WHEREAS, Harbour-8 Park is a City park located on the Richmond Greenway between Harbour Way and 8th Street, APN 538-420-001; and
WHEREAS, the State awarded the City the $8,500,000 through the Proposition 68 Grant to fund contracts for the Harbour-8 Park Expansion project; and
WHEREAS, the project includes the expansion of Harbour-8 Park to an adjacent property (Assessor Parcel Number 538-420-001) that POGO Park has agreed to donate to the City; and
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Richmond:
The Council does hereby authorize the City Manager or her designee to execute all required documents to facilitate the City’s acceptance of the land donation from POGO Park.
PASSED, APPROVED AND ADOPTED this 15th day of March 2022.
------------------------
I certify that the foregoing Resolution No. was duly passed, approved and adopted by the City Council of the City of Richmond, California, at a regular meeting of said City Council held on the 15th day of March 2022, by the following vote:
AYES:
NOES:
ABSTENTIONS:
ABSENT:
Clerk of the City of Richmond
Approved:
Mayor
Approved as to form:
City Attorney
March 15, 2022
Library and Community Services
DATE: March 15, 2022
TO: Mayor Butt and Members of the City Council
FROM:
LaShonda White, Interim Director of Library and
Community Services
Ranjana Maharaj, Deputy Director for Community
Services - Recreation
Subject:
Receive Feedback on a Fee Waiver Policy and
Partnership Policy
FINANCIAL IMPACT: The Community Services Department-Recreation Division charges fees, aligned with the Council-approved Master Fee Schedule, for programs and facility usage to help cover the cost of providing such services and
maintaining facilities.
While the positive impact on the availability of services is important, adoption of the fee reduction/waiver policy and partnership policy will decrease the amount of revenue
that the Recreation Division collects annually.
Between the past four years beginning in Fiscal Year
(FY) 2016-2017 through Fiscal Year 2019-2020, permit
fees for various events totaled approximately $640,000
($160,000 annually); however, a total of approximately
$462,000 ($115,000 annually) in applicable fees were
reduced or waived as a result of fee reductions. The total amount of fee reductions include a combination of
existing 25 percent reductions for community-based
organizations and 50 percent reductions for
governmental entities and 100 percent fee waivers. As a result of the COVID pandemic, FY 2019-2020 and
FY 2020-2021 do not provide a full year of “normal” data as rental requests and fees were down substantially.
AGENDA
REPORT
March 15, 2022
The amounts set forth above may not incorporate all the reduced or waived fees associated with memorandums
of understanding between the City of Richmond and non-
profit organizations.
PREVIOUS COUNCIL
ACTION:
November 16, 2021;
February 15, 2022
STATEMENT OF THE
ISSUE:
The Community Services Department – Recreation
Division (Recreation) recognizes the value of partnering with outside organizations to provide services that benefit the Richmond community. To provide support to
organizations that provide a community service and to
create an equitable process, staff is bringing forth a draft fee waiver policy for determining when event-related fees can be waived, and a partnership policy to expand or
enhance the services provided to Richmond residents.
RECOMMENDED ACTION:
DISCUSS the City of Richmond’s draft fee waiver and
partnership policies; and PROVIDE DIRECTION on the
next steps prior to policy adoption - Community Services (LaShonda White/Rajana Maharaj, 510-620-6828).
DISCUSSION:
The Community Services Department-Recreation Division (“Recreation”) strives to be an exceptional steward over facilities, parks, and funding for programs and services.
Historically, Recreation charges fees for programs and facility/park usage to help cover the cost of providing such services and maintaining facilities. Charging fees is a standard practice in the Recreation and Parks sector when individuals, private groups, government, or non-profit groups wish to reserve and exclusively utilize public facilities.
For many years, Recreation has worked with a variety of individuals and organizations to provide programs and services to Richmond residents and members of the public at- large. Organizations have increasingly requested fee waivers to support their program delivery. Additionally, partnerships between the City and organizations have steadily grown. This has caused Recreation to recognize the need to create more formal policies and procedures to ensure that fee waiver approvals and partnerships are consistent with the mission of Recreation and to ensure that organizations are treated with consistency and in an equitable manner.
City Council requested that City staff develop and bring forth comprehensive fee waiver and partnership policies for consideration. In order to provide an equitable process, staff recommends the creation of policies and procedures for (1) fee waivers for events or
March 15, 2022
temporary uses of City facilities and/or parks1, and (2) the development of partnership policies for longer-term collaborations between the City of Richmond and community- based organizations for the benefit of the Richmond community. Staff is bringing forth a draft fee waiver policy and draft partnership policy for City Council review, discussion, and feedback. Staff proposes to return with final versions of both policies for consideration and adoption at the April 26, 2022, City Council meeting.
Master Fee Schedule
The fees associated with reserving public facilities and parks for use are reviewed annually and approved by the Richmond City Council as part of the Master Fee Schedule (MFS). The MFS presented on November 16, 2021, included the 2021 proposed updates for Recreation. When the MFS was presented again on March 1, 2022, the Recreation fees that were included were not increased by the Employment Cost Index (ECI) index and were left the same as the last adoption in 2019. Staff also included established discounts for government and community-based organizations at 50 percent and 25 percent, respectively. The minor changes between the 2019 and 2021 fees include slight reductions in rental deposits, while some fees are being increased. Recreation fees have not risen since 2019, when they were increased by the suggested ECI factor of 1.027 percent. Staff wanted to make City Council aware of this issue and will bring Recreation’s 2021 MFS updates back as an action item at on April 26, 2022, concurrently with the final fee waiver and partnership policies.
Fee Waiver Policy
Historically, it appears the majority of waived fees related to parks and facilities usage were processed on a case-by-case basis with the ultimate decision made by the City Manager. The purpose of the proposed draft fee waiver policy for City Council’s consideration is to establish fiscally responsible guidelines to equitably evaluate and consider fee waiver requests for one-time events or temporary uses of City facilities and parks (Attachment 1).
Under the proposed policy, fee waivers may be submitted by organizations that fall within the following categories:
1) Intergovernmental Cooperation
2) Non‐profit Organization
3) Official City of Richmond Partner
4) City of Richmond Co-Sponsored Event
Recreation staff collects fees based on the approved Master Fee Schedule to help cover the cost of providing services and maintaining facilities. While the positive impact on the availability of services is important, adoption of the fee reduction/waiver policy and partnership policy will decrease the amount of revenue that the Recreation Division collects annually. As an example, between Fiscal Year (FY) 2016-2017 and Fiscal Year
1 Definition of fee waiver: the granting of a reduction or dismissal of a required fee normally charged for the use of a facility or park.
March 15, 2022
2019-2020, permit fees for various events totaled approximately $640,000 ($160,000 annually); however, a total of approximately $462,000 ($115,500 annually) in applicable fees were reduced or waived as a result of fee reductions (Attachment 2). This may not include additional costs associated with public safety.
The draft policy outlines the following:
Purpose of the policy
Eligibility
Eligible and ineligible uses
Procedures
Acknowledgements
Criteria
Schedule
Proposed application components
Partnership Policy
The purpose of the Partnership Policy is to establish policies, guidelines and procedures that govern how partnerships between the Recreation and external entities are evaluated, created, and managed (Attachment 3). This policy would cover organizations interested in longer-term use of City facilities or parks and such organizations’ desire to expand or enhance the services provided to Richmond residents (i.e., youth sports programs, Adopt-A-Spot, and beautification programs). Depending on the type of partnership, these agreements may or may not include fee waivers.
This policy will allow Recreation to be proactive rather than reactive when presented with a partnership opportunity. It also sets a “level playing field” for all potential partners, so that they can know and understand in advance the parameters and selection criteria for a proposed partnership. A major component in exploring any potential partnership will be to identify additional collaborating partners that may help provide a synergistic working relationship in terms of resources and community contributions.
The draft policy includes the following sections:
Purpose of the policy
Background
Partnership purpose
Partnership categories
Required conditions
Partner expectations
Costs for Approval Process
Definitions
Application
March 15, 2022
Next Steps
City staff reviewed numerous examples of fee waiver and partnership policies from various government agencies including but not limited to the following cities: Hayward, Lathrop, Rio Vista, and Suisun. In addition, City staff met internally to discuss components of both policies and incorporated promising practices within the Recreation and Parks industry. Both policies are drafts and include staff’s recommendations; however, we would like feedback on the various components included in both draft policies and applications.
City staff will incorporate feedback received at the March 15, 2022, City Council meeting into updates of both draft policies. Staff will also discuss the policies with City staff to determine how, if at all, both policies can be expanded to include non-Recreation departments and waivers of other fees. For example, it may be feasible for the City Manager or their designee to authorize the waiver of fees and/or taxes outside of those related to Recreation when it is determined to be in the best interest of the City of Richmond, our residents, and the payor. Staff plans to highlight the opportunity to provide feedback on the policies during the series of community budget meetings in March and will bring the proposed policies to the Recreation and Parks Commission at their April 6, 2022, meeting. Staff will then bring the final policies to City Council on April 26, 2022, for adoption.
DOCUMENTS ATTACHED:
Attachment 1 – Draft Proposed Facility Fee Waiver Policy Attachment 2 – FY 2016/17 – 2019/20 Recreation Facility and Parks Fee Waiver Report Attachment 3 - Draft Proposed Partnership Policy and Application
Attachment 1
1 DRAFT City of Richmond Community Services - Recreation Division Fee Waiver Policy
I. PURPOSE
The purpose of the draft fee waiver policy is to establish fiscally responsible guidelines to equitably evaluate and consider fee waiver requests for one-time events or temporary uses of City facilities and parks. These guidelines establish parameters for waiving outdoor park or indoor facility use fees for community-wide events and activities which benefit the public for special events or temporary uses. For purposes of this policy, the term “fee waiver” is the granting of a reduction or dismissal of a required fee normally charged for the use of a City-owned facility or park.
II. POLICY
The Community Services Department-Recreation Division (Recreation) recognizes the value of working with and supporting organizations to provide services and programs that benefit the Richmond community. Recreation strives to be an exceptional steward over City facilities, parks, and funding for programs and services. Charging fees is a standard practice in the Recreation and Parks industry when individuals, private groups, government or non-profit groups wish to reserve and exclusively utilize public facilities.
Fees charged for programs and facility/park usage help cover the cost of providing such services and maintaining facilities. This policy is established for determining when applicable City and Recreation fees (e.g., application, facility use, permit and other departmental charges) established by the City of Richmond’s Master Fee Schedule may be waived.
Scheduling and use of facilities and events are subject to availability of requested facilities and do not have preference over City programs and activities or previous commitments. The policy is effective to the extent a fee waiver can be considered without negatively impacting the City’s or Recreation’s budget or current operations.
III. ELIGIBILITY
Fees may be waived when such action is determined by the City of Richmond to be in the best interest of the City of Richmond, our residents, and the service applicant. Eligible organizations include the following:
1) Intergovernmental Cooperation
2) Non‐Profit Organization
3) Official City of Richmond Partner (Per Approved Partnership Policy) 4) City of Richmond Co-Sponsored Event
Intergovernmental Cooperation
Fees may be waived for events or temporary uses when the applicant is another government agency and the use is related to the performance of its normal functions and is a benefit to Richmond residents.
Attachment 1
2 Non-Profit Organization
A fee waiver may be approved for eligible non-profit organizations, including organizations with a non-profit fiscal agent, that is tax-exempt under section 501(c)3 of the Internal Revenue Code.
Examples of organizations that could receive possible fee reduction or waivers include:
Established Richmond Neighborhood Councils for monthly neighborhood meetings.
Events organized by groups with a current Adopt-a-Spot agreement and evidence of active participation in the program.
Organizations funded by the Community Services Department/Recreation Division and City Manager’s Office, Economic Development Love Your Block Mini-Grant program and organized by groups with active grant agreements.
Official City of Richmond Partner
An official partner is an organization or individual that has completed the Partnership Policy process with City of Richmond. These partners have demonstrated actions to provide a needed benefit to the community and therefore are eligible for fee waivers for the program delineated in the Partnership Agreement. All fees charged and waived will be listed in the Partnership Agreement and any additional activities requested on behalf of the recognized partner would cause an amendment to that Agreement.
Department Sponsored Program
Fees may be waived for events and programs that are sponsored or co-sponsored by the City. The organization/agency requesting sponsorship by the City has a 501(c)(3) status, the program must benefit the Richmond community, and no event fees shall be charged.
Appropriate recognition as Sponsor or Co-sponsor of the event or program is provided for the City of Richmond on all promotional materials and at the event or program. All resources provided by the City in sponsorship of the event (fee waiver or in-kind service) must be provided for within the Department’s current budget allocations without a reduction or increase of services or costs.
IV. ELIGIBLE AND INELIGIBLE USES
Eligible Uses:
Application fees, certain permit fees, and/or facility use/rental fees may be eligible for waiver through this policy.
Fee waivers are available for a variety of events including sporting, cultural, general, and major community events, as long as the event meets the criteria set forth in this policy.
Organizations can receive up to ______ in fee reductions or waivers within a 12- month period
Attachment 1
3 The following fees cannot be waived under this Policy:
Staffing or labor costs (i.e. overtime for staff working outside of normal operations), security costs, utility reimbursement costs, deposits for damages to facilities, refuse removal cost, custodial costs, maintenance costs, and other applicable department costs
Insurance or other fees as required by the City and/or ordinance Liquor license, food permits and health permits
City of Richmond business license fees
The following projects and events are ineligible:
Organizations based outside City of Richmond (unless the demonstrated benefits are primarily to the residents of Richmond)
Activities primarily of a fundraising or charitable nature unless the funds directly benefit City-owned facilities and/or programs. Events or activities that are not open to the public
Events that are political in nature or by individuals seeking political office or elected officials for the purpose of an election campaign Religious organizations seeking space or facilities for religious services Commercial events
Corporate events
Family or social gatherings
Events that provide no community benefit
Trainings that charge for participation
Projects or organizations who have failed to fulfill their obligations during previous events or activities for which Community Services Department/Recreation Division facility permit fees were waived or reduced Events at the Richmond Convention Center (Auditorium) or the Richmond Aquatic Centers (Richmond Plunge or Richmond Swim Center) Events scheduled that would conflict with already planned City of Richmond community events (e.g., 3rd of July).
V. PROCEDURES
1. Review the Fee Waiver Policy and Complete the Fee Waiver Application and Facility Reservation Permit (provides an estimate of the requested facility use fees).
2. Submit the Application, Permit, and the following required documents to Recreation per the specified schedule. The request must be submitted by an authorized representative.
Required Documents:
a. Applicant’s non‐profit organization documents or any other documents as may be required to show the applicant’s organizational paperwork. b. Appropriate insurance documents
c. Applicant’s financial statement showing revenues and expenses d. Any other documents that may be required and requested by the Recreation Division.
Attachment 1
4 3. If the request involves approval from another City of Richmond department, the request will be forwarded to that department.
4. Fee waiver applications will be assessed and reviewed based on the requirements listed in this document by an internal city panel (consisting of staff from the City Manager’s Office, Community Services and Finance) and the Recreation Deputy Director based on the timeline published in this document.
5. Based on review and scoring by the internal city panel, Recreation Deputy Director will make a recommendation to the Director of Community Services for final approval or denial.
6. The Director of Community Services will make the final decision regarding a fee waiver request and applicant will be notified of final decision per the specified schedule, and if approved and applicable, will submit a Special Event Permit.
7. Within forty-five (45) days of completion of the event for which a fee waiver was given, the organization should provide a written report to the Recreation Division, to include at a minimum the number of participants, event revenue and expenses, and a description of the benefit to the City.
8. Failure to abide by the rules and procedures as set forth in this document may result in the respective permittee being denied the current and any future fee waiver requests. Organizations that fail to cancel the approved event less than 30 days before their scheduled event and/or that fail to abide by the guidelines and requirements set forth in this policy may forfeit their ability to request future fee reductions or waivers or enter into Partnerships with the City for the following twelve (12) months.
VI. ACKNOWLEDGMENT & MARKETING
All recipients of a fee waiver or reduction shall acknowledge the City of Richmond in all publicity relating to the event or activity. Acknowledgement includes City of Richmond logos and statements in all advertising and promotional material, media releases and in other promotional contexts. Promotional opportunities should be detailed in the event application.
VII. FACILITY FEE WAIVER CRITERION
In determining if a fee waiver is warranted, the following criterion may be considered:
Organization Structure and Experience
Be offered by an eligible organization
Organization serves the Richmond community
Level of organization’s experience producing events/programs in Richmond
Attachment 1
5 Application Completeness and Compliance
Application is complete and all required documents are submitted by the stated deadline
The event or program is in compliance with the City’s non-discrimination policy The organization is in good financial standing with the City There is no evidence of previous violations of the Fee Waiver Policy (organizations that violate this Policy or present false information about their event or program may not be eligible for fee waivers)
Event or Program Design and Community Benefit
Description of event and proposed impact on community Event or program demonstrates a general public benefit to Richmond residents Organization offers activities or events associated with the Division’s mission Organization offers an event or programs that are not available through Recreation or another City department
Event or program is open to the entire public at no charge Organization is collaborating with any other entities Marketing and outreach plan is clearly articulated
The proposed event or program will have no significant impact on the facilities or department activities, that the permittee will provide volunteer services and materials to mitigate any impacts created by the event or program, or that the impacts are adequately offset by the public benefit provided by the program or event
Required Resources and Budget
Level of and reason for fee waiver request (above what is approved via the Master Fee Schedule)
Organization budget provided
The organization must submit their policy showing that they do not deny participants/players due to their inability to pay registration or participation fees The imposition of fees would create a financial hardship on the organization or would have a detrimental effect upon the services provided to the public
VIII. FEE WAIVER APPLICATION SCHEDULE
In order to fully support the success of your event, Recreation staff asks that organizations submit the Fee Waiver application and all applicable documents by the dates outlined in the schedule below. This schedule provides both City staff and organizations sufficient time to adequately plan for events. It also ensures that the Special Event Permit is routed to internal and external departments/entities with sufficient time and allows for staff to review all required documents well in advance of scheduled events.
Requests may be denied if organizations fail to meet these deadlines.
Quarter Event Start Month Application Due Approval/Denial Notification
Quarter 1 January October 1st November 1st
Attachment 1
6 February
March
Quarter 2 April
May
June
January 1st February 1st
Quarter 3 July
August
September
April 1st May 1st
Quarter 4 October
November
December
July 1st August 1st
IX. PROPOSED APPLICATION COMPONENTS
The City of Richmond recognizes the value of partnering with other agencies and organizations in providing services that benefit the community and its residents. In order to request a waiver of fees, organizations must complete an application and submit it with necessary documentation to the Recreation. Components of a proposed application are below:
Organization Information – Contact information, type of organization (government, non-profit, co-sponsor, etc.), organizational financial information Event Information – event description, event purpose, list of activities that will take place, list of fees being charged, time and date of the event, indicate the specific facility(ies) for which a fee waiver is requested, projected attendance, promotion and outreach plans, collaborating organizations, etc.
Fee Waiver Request – How does event benefit Richmond community, explanation of why fee waiver is being requested, amount of waiver being requested and explanation as to why, and how event fees would create a financial hardship
Attachment 2
City Departments $44,153.52 ($32,871.92) $11,281.60
Government Agencies $3,069.20 ($1,291.88) $1,777.32
Resident Nonprofits $89,644.00 ($61,774.98) $27,869.42
NonResident Nonprofits $58,059.42 ($20,847.75) $37,211.67 FY2016/17 TOTALS $194,926.14 ($116,786.53) $78,140.01
City Departments $43,332.94 ($35,071.94) $8,261.00
Government Agencies $6,797.00 ($5,186.75) $1,610.25
Resident Nonprofits $155,291.25 ($140,536.37) $14,754.88 NonResident Nonprofits $2,747.50 ($2,198.87) $548.63
FY2017/18 GRAND TOTALS $208,168.69 ($182,993.93) $25,174.76 City Departments $118,565.25 ($88,457.37) $30,107.88
Government Agencies $22,260.25 ($9,505.00) $12,755.25
Resident Nonprofits $35,485.25 ($26,847.25) $8,638.00
NonResident Nonprofits $9,539.00 ($4,745.00) $4,794.00
FY2018/19 GRAND TOTALS $185,849.75 ($129,554.62) $56,295.13 City Departments $28,887.00 ($22,956.25) $5,954.75
Government Agencies $2,562.80 ($2,028.50) $534.00
Resident Nonprofits $9,702.00 ($3,244.25) $6,457.75
NonResident Nonprofits $9,391.00 ($3,955.50) $5,435.50
FY2019/20 GRAND TOTALS $50,542.80 ($32,184.50) $18,382.00 GRAND TOTAL FY2016/17 -
2019/20 $639,487.38 ($461,519.58) $177,991.90
FY2019/20 DISCOUNTS REPORT (NON-
CNV CTR) TOTAL RENTAL AMOUNT TOTAL DISCOUNTS
TOTAL RECEIVED BY CSD-
REC
TOTAL RECEIVED BY CSD-
REC
FY2017/18 DISCOUNTS REPORT (NON-
CNV CTR)
FY2018/19 DISCOUNTS REPORT (NON-
CNV CTR) TOTAL RENTAL AMOUNT TOTAL DISCOUNTS
TOTAL RENTAL AMOUNT TOTAL DISCOUNTS
TOTAL RECEIVED BY CSD-
REC
TOTAL RENTAL AMOUNT TOTAL DISCOUNTS
TOTAL RECEIVED BY CSD-
REC
FY2016/17 DISCOUNTS REPORT (NON-
CNV CTR)
FY 2016/17 - 2019/20 RECREATION FACILITY AND PARKS FEE WAIVER REPORT
Attachment 3
1 DRAFT City of Richmond Community Services Department – Recreation Division Partnership Policy
I. Policy Purpose & Background
The purpose of the Partnership Policy is to establish policies, guidelines and procedures that govern how partnerships between the City of Richmond Community Services Department - Recreation Division (Recreation) and external entities are evaluated, entered into and managed. This allows the agency to be proactive rather than reactive when presented with a partnership opportunity. It also sets a “level playing field” for all potential partners, so that they know and understand in advance the parameters and selection criteria for a proposed partnership.
The main goal for these partnerships is enhancing public offerings. Recreation is interested in promoting partnerships which involve cooperation among many partners, bringing resources together to accomplish goals in a synergistic manner. Proposals that incorporate such collaborative efforts will receive priority status.
II. Background
For many years, Recreation has worked with a variety of individuals and organizations to provide programs and services to Richmond residents. These arrangements, or partnerships, have steadily grown in numbers causing Recreation to recognize the need to create more formal policies and procedures to ensure that the partnerships are consistent with the mission and values of Recreation and that partners are treated with consistency and equity.
III. Partnership Purpose
Recreation seeks to establish partnerships with non-profit and other public agencies to enhance recreation opportunities for Richmond residents. Recreation’s goal in partnering is to improve service by providing a wider range of recreational services to the community.
The purpose of a partnership is to expand or enhance the services Recreation delivers to Richmond residents. Partnerships should positively affect the quality of recreational, cultural, and outdoor experiences. A major component in exploring any potential partnership will be to identify additional collaborating partners that may help provide a synergistic working relationship in terms of resources and community contributions. The City will post the Partnership Policy on the City’s website.
Attachment 3
2 IV. Partnership Categories
Recreation engages with partners that fall into one of the following categories:
• Individuals
• Businesses or corporations
• Social service or community organizations
• Non-profit organizations
• Volunteer/neighborhood organizations (including ‘friends of’ groups) • Districts and Quasi-governmental entities
• Governmental entities
• Public School Districts
V. Required Conditions
The Partner must:
• Align with Recreation’s mission, values, and goals.
• Comply with all applicable laws, rules, policies, and health guidelines • Have the necessary competency, resources, or license(s) (if applicable) to engage in the proposed activity.
• Meet insurance coverage requirements as determined by the City’s Risk Management Office.
• Submit proposed activities to Recreation for review and approval. • Meet all applicable Recreation maintenance standards and construction requirements (if applicable)
• Provide programs that compliment City programming efforts and are not in direct competition.
• Present their current year budget
• Attest to receiving and agree to following all communication requirements • Demonstrate the activity provides a community benefit or significant value to the community or a significant portion of its residents.
• Prove that they are serving the residents of Richmond through their general program operations.
• Agree to or submit a policy demonstrating that they do not deny participants due to their inability to pay registration or participation fees. • For youth serving organizations, show proof of performing background screenings of coaches and administrators.
• Demonstrate that the proposed partnership has no significant impact on the facilities or department activities, that the partner will provide volunteer services and materials to mitigate any impacts created by the event or program, or that the impacts are adequately offset by the public benefit provided by the program or event.
Attachment 3
3 VI. Expectations for Partners
Partners will generally provide one or more of the following activities:
Funding for programs or projects
Park and/or facility operational support, maintenance and improvements Tabling at City events
Conduct at least one (1) quarterly clean-up of utilized spaces encouraging participant and community participation
Keep all areas clean and free of debris after every scheduled use Volunteer time
Provide in-kind services and goods
Help the City activate and promote ownership spaces
Park and facility operational support and improvements Programs at reduced or no cost to constituents
Fulfill the City’s fingerprinting and TB testing requirement As required, provide the City’s requirement for proof of vaccination
VII. Process
The steps for the creation of a partnership with Recreation are as follows:
A. Notification
Recreation will create a public notification process through BidsOnline that will help inform all interested partners of the availability of partnerships with the City. This will be done at a minimum annually December 1st through notification in social media post, flyers and through any other notification method that is feasible.
B. Preliminary Proposal
The proposing partner takes the first step to propose partnering. To help in reviewing both the partnerships proposed, and the project to be developed in partnership, Recreation asks for a Preliminary Proposal according to a specific format as outlined in Part Two - Proposed Partnership Outline Format.
C. Review
If initial review of a Preliminary Proposal yields interest and appears to be mutually beneficial, the Recreation Supervisor will work with potential partners.
D. Planning
The Recreation Supervisor is available to answer questions related to the creation of an initial proposal, and after initial interest has been indicated, will work with the proposing partner to create a checklist of what actions need to take place next. Each project will have distinctive planning, design, review, and support issues. The Recreation Supervisor will facilitate the process of determining how the partnership will address
Attachment 3
4 these issues. The Recreation Supervisor and the proposing partner can also facilitate input from the Library and Community Services Director, Deputy Director for Community Services-Recreation, Recreation and Parks Commission and City Manager providing guidance for the partners as to necessary steps.
E. Cost Evaluation
The partnership must cover the costs the partnership incurs, regardless of how the partnered project is staffed. If City of Richmond - Recreation staff resources are to be used by the partnership, those costs should be included in its project proposal and budget.
VIII. Costs for the Proposal Approval Process
For most proposed partnerships, there will be considerable staff time spent on the review and approval process once a project passes the initial review stage. This time includes discussions with Proposing Partners, exploration of synergistic partnering opportunities, possible RFP processes, facilitation of the approval process, and assistance in writing and negotiating agreements, contracting, etc.
IX. Definitions
Partnership: A partnership is a cooperative venture between two or more parties with a common goal, who combine complementary resources to establish a mutual direction or complete a mutually beneficial project. Partnerships can be facility-based or program-specific.
Partner: an individual, organization or group that, through a written agreement, provides a service or benefit to Recreation and/or Richmond’s residents and in exchange gets some benefit from Recreation.
Partnership Application: a standardized application each potential Partner completes and submits to Recreation.
Partnership Agreement: a written and formally executed agreement between Recreation and an outside party that details the terms of the Partnership. The Partnership Agreement must be signed by all parties, including formal execution in accordance with City laws, before Partner work can begin.
Public Benefit: an activity or service that accomplishes a public purpose promoting the needs, interests, social, economic, and cultural well-being, or the health and safety of a community and complements the vision and direction of Recreation.
Attachment 3
5 DRAFT Partnership Agreement Application
The proposed Partnership Agreement outline provides a format that is intended to help guide organizations in creating a proposal for review with City of Richmond Recreation staff. Organizations are asked to provide as much information as possible in the following outline form.
I. Description of Proposing Organization
Name of Organization
Years in Existence
Contact Names, Mailing Address
Physical Address, Phone, Fax, E-mail
Purpose of Organization
Services Provided
Member/User Profiles
Accomplishments
Current year budget
II. Summary of Proposal (100 words or less)
What is being proposed?
III. Benefits to the Partnering Organization
Why is your organization interested in partnering with the City of Richmond Recreation Division? Please individually list and discuss the benefits (monetary and non-monetary) for your organization.
IV. Benefits to the City of Richmond Recreation Division Please individually list and discuss the benefits (monetary and non-monetary) for Recreation and residents of Richmond.
Guiding Questions:
Meeting the Needs of our Community:
In your experience, how does the project align with Recreation’s goals? How does the proposed program or facility meet a need for Richmond’s residents?
Who will be the users?
What is the projected number and profile of participants who will be served? What alternatives currently exist to serve the users identified in this project? How much of the existing need is now being met?
What is the availability of similar programs elsewhere in the community? Is the proposed Partnership activity consistent with Recreation’s current priorities?
Attachment 3
6 Does the Partnership provide public benefit by increasing access to parks, facilities and/or Recreation programs?
Does the Partnership meet the needs and interests of underserved or diverse populations?
Does the Partnership engage populations that otherwise do not utilize Recreation programs and services?
What are the overall benefits for both the City of Richmond and the Proposing Partners?
The Financial Aspect:
What are the anticipated prices for participants?
What resources are expected to come from Recreation?
What is the plan to ensure the program will be funded in future years? How will the proposing partner offer programs at reasonable and competitive costs for participants?
Logistics:
How much space do you need? What type of space?
What is your proposed timeline?
What are your projected hours of operations?
What are your initial staffing projections?
Are there any mutually beneficial cooperative marketing benefits? What is your organization's experience in providing this type of program? How will your organization meet Americans with Disabilities Act and EEO requirements?
General:
Does the Partnership increase Recreation’s capacity to deliver or enhance the quality of existing programs or services?
How can the proposing partner assure the City of Richmond long-term stability of the proposed partnership?
March 15, 2022
Finance Department
DATE: March 15, 2022
TO: Mayor Butt and Members of the City Council
FROM:
Anil Comelo, Interim Deputy City Manager
Belinda Brown, Director of Finance
Joe Leach, PE, Director of Public Works
Lina Velasco, Director of Community Development
Subject:
Adoption of a Resolution of Intent to Establish a
Community Facilities District (CFD) for Point Molate,
Adoption of Goals & Policies Statement for Community
Facilities Districts, specifically for the Point Molate CFD FINANCIAL IMPACT: A Fiscal Impact Study was prepared on behalf of the developer, and the Study was peer reviewed by the City’s consultant. The Study projects a positive long-term
impact of the development. However, with more
conservative assumptions than those used in the peer
reviewed study, a negative fiscal impact is possible.
Developer has now agreed to additional security
measures to ensure that possible negative fiscal impacts to the General Fund are more fully addressed.
PREVIOUS COUNCIL
ACTION:
November 23, 2021
January 25, 2022
February 1, 2022
February 24, 2022
The Council considered this item without taking formal
Action in a Study Session on February 24, 2022.
This item was agendized for January 25,2022, and carried over to the February 1, 2022, Council Meeting ; The City Council did not take formal Action.
AGENDA
REPORT
March 15, 2022
The technical consulting team for the Community Facilities District formation was approved at the meeting of
November 23, 2021.
STATEMENT OF THE
ISSUE:
Within its Disposition and Development Agreement and
its Development Agreement with the entitlement holders
of Point Molate, the City has agreed to cooperate in the formation of financing districts, including landscape and lighting maintenance districts, community facilities
districts, benefit assessment districts, geologic hazard abatement districts, and tax-exempt financing
mechanisms. Certain actions are required of the City to comply with these agreements. This item presents
documents required for the first formal step in the
process of forming a Community Facilities District.
Presented herewith are a Resolution Adopting Local
Goals and Policies Relating to Community Facilities
Districts, a Resolution of Intention for the establis hment of a Community Facilities District for Point Molate, and a Resolution of Intention to Incur Bonded Indebtedness
within the Community Facilities District for Point Molate.
RECOMMENDED ACTION:
ADOPT a resolution adopting Local Goals and Policies
Relating to Community Facilities Districts; ADOPT a
resolution of intention to establish the City of Richmond Community Facilities District No. 2022-1 (Point Molate), and to Designate Three Improvement Areas therein, to
Authorize the Levy of a Special Tax to Pay the Cost of
Acquiring or Constructing Certain Facilities, Provide
Certain Services and Pay for Certain Incidental Expenses and to Pay Debt Service on Bonded Indebtedness; and
ADOPT a resolution of intention to Incur Bonded
Indebtedness Within the City of Richmond Community
Facilities District No. 2022-1 (Point Molate), and Each of the Three Improvement Areas Therein. There is no
requirement of General Fund support for these Bond
measures - Public Works Department (Joe Leach 510-
620-5478).
March 15, 2022
DISCUSSION:
Background. The formation of land-secured financing districts, as permitted by State law, are utilized to finance the construction, development, and operation of the master infrastructure, offsite improvements, and master developer amenities in connection with various projects and the development of a property.
During the entitlement phase of land use planning, a Fiscal Impact Study1 was prepared by Economic Planning Systems, Inc. (“ EPS”) on behalf of the developer, Winehaven Legacy, and the Study was peer reviewed2 by the City’s consultant, BAE Urban Economics. These studies were reviewed by the City Council prior to the granting of development entitlements in September 2020. The EPS study projected a positive long-term impact of the development. However, adverse fiscal impacts in the short term are possible and have been considered at previous City Council meetings.
This impact has the potential to occur should operating costs exceed the tax revenues derived from the project before the project is completely built out.
Also during the entitlement phase of the land use planning and/or project planning for Point Molate, the City was asked and agreed to include provisions in its Disposition and Development Agreement (“DDA”) and its Development Agreement (“DA”) to cooperate with developers in the formation of financing districts, including landscape and lighting maintenance districts, community facilities districts, benefit assessment districts, geologic hazard abatement districts, and tax-exempt financing mechanisms.
The City is obligated under the terms of its DDA and its DA to work with Winehaven Legacy, aka SunCal, to form a Community Facilities District (“CFD”) for the potential Point Molate project. However, the City is not obligated by the DDA and DA to proceed if the financing mechanism requires General Fund support.
As noted previously, one mechanism of land-secured financing is the CFD. On November 23, 2021, the City Council authorized the City to assemble a team to study the proposed project and develop the various quantitative analyses and legal documents that are necessary for the formation of a Community Facilities District.
Initially the developer’s fiscal impact analysis by EPS showed no impact on the General Fund over the expected absorption timeframe of seven years for buildout.
Over a number of public meetings, this analysis was expanded to 15 - and 30-year buildout scenarios. Because a police and fire station must be constructed and staffed at the early stage of project development, the speed of development and sales is critical. To prevent a negative fiscal impact, the developer first offered $2 million per
1 Richmond Point Molate Fiscal and Economic Impact Analysis, prepared for Winehaven Legacy LLC by Economic Planning Systems, Inc. (“EPS”) and submitted on June 17, 2020.
2 Peer Review of Winehaven Prepared Fiscal Impact Analysis for Proposed Point Molate Mixed -Use Development Project, prepared for City of Richmond by BAE Urban Economics Inc. (BAE) and submitted on June 29, 2020.
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year for five years to support operations. The finance team for the City further suggested using the $22.5 million revenue from the sale of the land, as an early development security fund, that would eventually be transferred to the City’s General Fund. The City Council then questioned the assumed sales prices of the units which created the possibility of a negative impact within the 30 -year buildout scenario.
The City’s financial team went back to the developer and requested that the City’s $22.5 million commitment as security be removed, and the developer fund the public safety operations until the costs can be fully carried by the CFD. The developer has responded favorably and will provide an operational subsidy as needed. The City’s police and fire station services costs are projected at $5.355 million, and the developer will provide $6 million with a 12 percent contingency, which payment would escalate at the maximum CFD rate of 6 percent. The need for the $22.5 million Security Fund from the City is eliminated. With this, the City’s financial team thinks the City Council’s efforts have now substantially improved the City’s position.
Risk Assessment. With this summary, the City Council and technical consultants have identified policy questions and risks. The team has designed for City Council consideration a CFD that mitigates or eliminates risks.
The following risks have been identified with respect to the formation of a CFD for Point Molate:
o Risk 1: The CFD allows the development of Point Molate to proceed, and the project has an adverse fiscal impact on the City's General Fund.
o Risk 2: The CFD is formed, but bonds are never issued, and the project is de facto abandoned.
o Risk 3: The CFD issues bonds and the bonds go into default.
o Risk 4: The CFD issues bonds but the development of the project proceeds very slowly or is stalled for years.
Below is a more detailed discussion of each risk described above:
Risk 1: The CFD allows the development of Point Molate to proceed, and the project has an adverse fiscal impact on the City's General Fund.
The primary fiscal challenge associated with the development of Point Molate is the need for both a fire station and a police substation to serve the area. While the DDA specifies that a combined police and fire station must be completed at the expense of the developer prior to sale or rental of housing units in Point Molate, there is no such special provision in the DDA regarding developer funding of the operational costs.
As previously noted, d uring the entitlement phase of land use planning, a Fiscal Impact Study was prepared by EPS on behalf of the developer, and the Study was peer reviewed by the City’s consultant, BAE. The EPS study projects a positive long -
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term fiscal impact from the develo pment, taking into consideration the full operational costs for the new fire and police stations in Point Molate. City staff has checked the assumptions on fire and police operating expenses and found them substantially accurate. The combined costs of staffing and operating the proposed combined police and fire station in Point Molate projected by the Fiscal Impact Study done in 2020 were estimated to be $5.2 million per year. City staff has done a detailed analysis of the costs to staff and operate the proposed combined police and fire station in Point Molate. The updated staff analysis indicated an annual cost of $5.355 million per year.
However, the staff analysis also indicated a cost of about $1.65 million to acquire police and fire rolling stock for the new station. If leased, an annual lease payment for rolling stock is projected to be less than $300,000 per year. This equipment will need to be replaced over time. City staff’s analysis:
Given all these considerations, the peer-reviewed fiscal impact analysis would indicate, when adjusted for SunCal's current development plans for Point Molate, an annual fiscal surplus of approximately $7.5 million per year at full build out.
However, prior to build out, staff and the finance team have determined that the need to fund $5 million+ per year in fire and police operating expenses for Point Molate will result in a negative fiscal impact prior to the completion of about 600 of the 1,400+ units planned for Point Molate.
Council has directed staff to re-evaluate the fiscal impact of the proposed development using lower estimated valuations for Point Molate than those provided by Integra Reality Resources in their February 7, 2022, analysis. Accordingly, City staff and the City's finance team used the lower estimated valuations provided by Strategic Economics in their September 8, 2020, study for the Point Molate Alliance (Attachment 6). Use of Strategic Economics’ lower valuation assumptions and projecting a long 30-year build out period for Point Molate results in a negative fiscal impact on the City’s General Fund. Use of a 7-year or 15-year build out period with Strategic Economics’ valuation assumptions results in a positive fiscal impact on the City’s General Fund.
Given the requirement that the CFD have no negative impact upon the City, the proposed Rate and Method of Apportionment ("RMA") proposed within the Resolution of Annual Costs for Staffing
Police $2,090,945
Fire $3,264,037
Total $5,354,982
One-Time Start-Up Costs
Police $228,800
Fire $1,412,380
Total $1,641,180
Summary Public Safety Costs for the
Start-Up & Staffing of Station at Point Molate
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Intention of the City Council of the City of Richmond, California, to Establish the City of Richmond Community Facilities District No. 2022-1 (Point Molate) (Attachment 3) has been designed to fully mitigate the risk of negative fiscal impact on the City’s General Fund, even in the 30-year build out scenario using the valuation estimates of Strategic Economics. This protective provision is described in detail in the section of this staff report regarding the Rate and Method of Apportionment.
Risk 2: The CFD is formed, but bonds are never issued, and the project is de facto abandoned.
The formation of a CFD for a particular real estate development, such as Point Molate, does not directly trigger or result in the issuance of bonds or the actual construction of the project. There are a number of examples in California where CFDs were formed, and years passed before bonds were issued and the project started development. In a few cases, the project was de facto abandoned by the developer.
In this case the City's fiscal risk would arise from the need to provide basic public safety services to the Point Molate area in a vacant land and/or open space state. Neither staff nor the financing team has any estimates of what these costs would be.
If bonds are not issued, the City would not have any of the risks associated with bond issuance, as described below under Risk 3.
With respect to the risk of project failure, staff and the financing team were presented with a number of questions regarding anticipated absorption rates of a development of Point Molate. These questions were addressed in the materials previously presented, and particularly for the Study Session held on February 24, 2022. As addressed then, an absorption study has not been prepared at this time because the absorption study must be prepared and dated not more than 90 days in advance of the issuance of bonds. "Best practices" amongst California public agencies with respect to the absorption study and appraisal for a potential CFD project is to require these documents at the time of bond issuance, as opposed to the time of CFD formation. Since two to three years may transpire between the time of CFD formation and the time when home construction can start, these studies are typically considered speculative at the time of CFD formation.
Risk 3: The CFD issues bonds and the bonds go into default.
As noted in a presentation to Council on November 23, 2021, the worst-case scenario for bond issuance is that the first series of bonds for a Point Molate CFD are issued, but the developer stops paying CFD special taxes and de facto abandons the project. Such a failure would most likely be accompanied by a bankruptcy filing by the developer.
Given the need to fully fund and construct a $40 million+ utility stub across Interstate 580 and up Stenmark Drive before the first building permit can be issued, the project could conceivably remain non-developable until the utility stub is completed.
March 15, 2022
In this case, the City would be required to (1) pursue statutory foreclosure proceedings against taxable property within the CFD and (2) retain bankruptcy counsel in the event the developer files for bankruptcy as well. Again, as noted before, the City has absolutely no obligation to pay debt service on defaulted CFD bonds. The CFD bonds are solely secured by special taxes on taxable property within the CFD. The disclosure to potential bond investors will make this fact very clear.
Nevertheless, the legal costs of statutory foreclosure and bankruptcy proceedings can be significant. Bankruptcy counsel for the City would be very expensive and could easily run $100,000+ per year. Note however that all of these expenses are reimbursable in full from future special taxes from the CFD. Note also that a Federal bankruptcy court has no authority to amend or extinguish the tax lien for the CFD. This means that it is extremely likely that the City will be repaid in full, with interest, for its expenses in pursuing foreclosure and representing itself in bankruptcy court.
The worst case in the City's municipal advisor's experience with respect to this interim adverse impact on the General Fund is with the Ritter Ranch CFD for the City of Palmdale. Foreclosure and bankruptcy court expenses over a six-year period totaled approximately $1 million.
The City’s municipal bond rating is not at risk for being downgraded because the bond rating companies (Moody’s and Standard and Poor’s) do not consider bonds indebtedness of a Community Facilities District to be an obligation of the City. There is no link between a CFD default and the City’s bond rating.
Potential mitigation measures for this risk will be presented as part of the Statement of Goals and Policies discussion described below.
Risk 4: The CFD issues bonds but the development of the project proceeds very slowly or is stalled for years.
City staff and the City's finance team believe that the "cross-over point" where General Fund revenues from the project exceed General Fund expenses occurs when about 600 units have been constructed and certificates of occupancy have been issued in Point Molate. The question is, how does the City deal with the adverse fiscal impact of the project prior to that point?
This question goes to the core question of the anticipated absorption rate for the Point Molate project. SunCal anticipates build out over a 7-year period, measuring from the time the first building permit can be pulled. City staff and its finance team have not seen any market feasibility or absorption study prepared for SunCal. As noted above, Council members have asked appropriate questions about the likely absorption schedule for the project. However, even if such a study were publicly available now, it would remain very speculative. The time for CFD formation, design, permitting and construction of the utility stub and CFD bond issuance in all likelihood puts the first building permit at least
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two years if not three years in the future. Any absorption estimates done now may not be applicable for the real estate market two or three years from now.
Procedure for Forming the Point Molate CFD. To form a CFD, the City must undertake the following actions:
1) Make Written Request to Establish City of Richmond Community Facilities District No. 2022-1 (Point Molate) (Attachment 1)
2) Adopt a Statement of Goals and Policies (Attachment 2) 3) Adopt a Resolution of Intention to Establish the City of Richmond Community Facilities District No. 2022-1 (Point Molate), and to Designate Three Improvement Areas therein, to Authorize the Levy of a Special Tax to Pay the Cost of Acquiring or Constructing Certain Facilities, Provide Certain Services and Pay for Certain Incidental Expenses and to Pay Debt Service on Bonded Indebtedness (Attachment 3)
4) Adopt a Resolution of Intention to Incur Bonded Indebtedness Within the City of Richmond Community Facilities District No. 2022-1 (Point Molate), and Each of the Three Improvement Areas Therein (Attachment 4)
5) Hold a public hearing no sooner than 30 days after the adoption of a Resolution of Intention to Establish the City of Richmond Community Facilities District No. 2022-1 (Point Molate)
6) After a public hearing, adopt a Resolution of Formation 7) Hold a landowner vote
8)
The proposed CFD formation schedule for Point Molate shows the City Council approving the Resolution of Intention to Establish the City of Richmond Community Facilities District No. 2022-1 on March 15, 2022. The public hearing would be scheduled and noticed for April 19, 2022. Adoption of the Resolution of Formation and the landowner vote would be considered subsequent to the public hearing, with both actions taking place on April 19. 2022, as well. This schedule would accommodate the formation of a CFD by April 20, 2022, as required by the City of Richmond’s DDA.
Statement of Goals and Policies. State law requires that any public entity considering approval of formation of a CFD must adopt a Statement of Goals and Policies. This statement addresses the following major policies regarding CFDs within the City:
Types of land development for which CFDs may be used. Types of facilities and services that CFDs may be used to fund. Minimum ratio of appraised or assessed value to bond amount ("value-to-lien" ratio) for any bond issuance.
Any requirements for developer cash contributions for funding facilities. Method of bond sale for CFD bonds, e.g., public offering and/or private placement.
Maximum term of any CFD bonds.
Minimum land use entitlements required for issuance of bonds. Security requirements from developers for the issuance of bonds.
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Minimum requirements for CFD bond sale investor disclosure document. Requirements for an absorption study and an appraisal prior to the issuance of bonds.
The City Council will set all of these requirements through adoption of the Statement of Goals and Policies. The Statement of Goals and Policies is typically adopted at the same meeting that the Resolution of Intention to establish a District is adopted. Again, as noted above, the constraints in the Statement of Goals and Policies are not covered by either the Resolution of Intention or Resolution of Formation in the CFD formation process.
Discussion of proposed draft Statement of Goals and Policies. Particular attention has been given to including language in the Statement of Goals and Policies that makes the Statement robust and protective of the City’s interests.
Section V - Security. This section mandates a 5 -to-1 value to lien ratio (ratio between appraised value and bond amount). In addition, it also requires that the developer post a letter of credit payable to the City equal to two years of debt service on their undeveloped property at the time of bond issuance. This has the effect of severely penalizing the developer and thereby discouraging the developer from making delinquent tax payments or filing bankruptcy.
Section VI - Disclosure Requirements. This section, amongst other things, requires the developer to disclose all of their hist ory with other CFDs, including tax delinquencies and bankruptcies. This has the effect of providing transparency to both the City and bond investors.
Section VII - Other Requirements for Land Developers. This section, amongst other things, provides that the City can require funding by developer cash or from bond proceeds of a $100,000 reserve to fund the City costs in the event of developer tax delinquencies or a bankruptcy. This has the effect of providing cash to the City to fund pursuit of remedies i n the event of tax delinquencies or bankruptcy by the developer.
Section XI - Privately Placed CFD Debt. This section provides that if debt for a CFD is privately placed with investors who absolve the City of any responsibility for disclosure, that the value to lien ratio may be as low as 2.5 -to-1, and the letter of credit requirement can be waived. This has the effect of ensuring that the City has no liability to a bond investor and makes the issuance of bonds without risk to the City.
Resolution of Intent. The Resolution of Intent to form a CFD provides preliminary approval of the following documents or specifics of the CFD:
Rate and Method of Apportionment ("RMA")
Authorized Facilities
March 15, 2022
Authorized Servi ces
Boundaries of the CFD
Boundaries of the Improvement Areas
Maximum Authorized Bond Amount
Rate and Method of Apportionment. The Resolution of Intent gives preliminary approval to the RMAs for three separate Improvement Areas within the proposed Point Molate project. Separate RMAs for each Improvement Area allows the special tax rates to be specifically set for the development likely to occur in each Improvement Area.
There are two types of special taxes described within the RMA: Special Tax A to fund facilities for Point Molate, including the police and fire station, and Special Tax B to fund services. Special Tax A can be increased annually at a rate not to exceed 2 percent per year. Special Tax B can be increased at a rate equal to the Consumer Price Index, but not less than 2 percent per year and not greater than 6 percent per year. Both of these special taxes can be levied for a period of 60 years after Fiscal Year 2021-2022.
Full mitigation of negative fiscal impact in the RMA. In response to comments and questions by the City Council at the study session of February 24, 2022, the following changes to the RMA were made with respect to fiscal impact on the General Fund.
The RMA provides for a special tax on undeveloped property owned by SunCal or other developers to fully mitigate the potential for negative fiscal impact should that occur prior to the full build out of the project. As noted earlier, the maximum negative fiscal impact determined by the need to fully staff the police and fire facility for the first "move- ins" for the project is $5.355 million per year; this cost is estimated to be $5.655 million per year if the City leased rather than purchased rolling stock. The maximum special tax for services ("Special Tax B"), including police and fire, on undeveloped property is $6.3 million. This total special tax potential will inflate at the Consumer Price Index at a rate not less than 2 percent but not greater than 6 percent for the life of the CFD.
The fiscal deficit will be determined annually by a consultant retained by the City, using actual sales prices for residential units and other developed property within the CFD, and using the overa ll fiscal impact model recommended by BAE, the City's own fiscal consultant. This tax levy on undeveloped property to mitigate fiscal impact can be repaid from future special taxes levied on developed property from any surplus special taxes for the Special Tax A (facilities tax) after payment of debt service. This means that reimbursement to the developers for any negative fiscal impact tax levies will comes from the special taxes intended to pay debt service on bonds issued to fund infrastructure costs for the Point Molate project, not the Special Tax B used to fund services for both Point Molate and City residents.
Consequently, a slow build out period is not a fiscal impact risk to the City. It was originally presented at the February 24, 2022, workshop to utilize the $22.5 million purchase revenue towards a “Security Fund” against negative fiscal impact. In
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response to concerns expressed by members of the Council, the proposed undeveloped property tax in the RMA mitigates the need for the "Security Fund " against negative fiscal impact ; it is not required. The City's finance team estimates that using the Strategic Economics valuation estimates and a 30 -year build-out, the total Special Tax B levy on SunCal or other developers is over $60 million. If so, o nly $15 million would be reimbursed from surplus special taxes after debt service from Special Tax A.
This provision gives the City the maximum authority allowed under the State statute to mitigate adverse fiscal impact from the Point Molate project on the City’s General Fund. The only limit is the 6 percent annual cap on increases to Special Tax B for services in the State statute. If the City’s operating expenses at a rate not only in excess of 6 percent for a multi-year period, and the City’s revenues also increased at significantly lower rate over the same multi -year period, a negative fiscal impact is possible.
Downward Adjustment of Special Tax A. The RMA provides that Special Tax A, the facilities tax, can be adjusted downward to keep the combine d tax burden on property within the 2 percent of assessed value limit stated under the DDA. This potential downward adjustment takes place at the time of issuance of each series of bonds are any of the three Improvement Areas. The adjustment is based on an estimate of the actual sales prices estimated for new construction within each Improvement Area securing such bond issues. Special Tax A cannot be adjusted upwards under this process, regardless of what the estimated sales prices are.
Note that Special T ax B, the services tax, cannot be adjusted downwards.
Authorized Facilities . All facilities required by the development are authorized.
Authorized Services. All services possible under State law are authorized.
Boundaries of the CFD and the Improvement Areas. The boundaries of the CFD and the Improvement Areas are consistent with the DDA, and do not include areas designated for open space.
Resolution of Intent to Incur Bonded Indebtedness. This resolution sets the maximum Authorized Bond Amount for the CFD. The authorized bond amount is capped at a maximum of $292 million. This figure is considerably larger than the $100 million estimated allocation for facilities in the DDA. This resolution does not obligate the City to issue bonds for the Point Molat e CFD. To do so, the City Council would be asked to adopt another resolution in the future: a Resolution of Necessity to Incur Bonded Indebtedness.
The authorized bond amount is capped at a maximum of $292 million for the following reasons:
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Regardless of what the authorized bond amount is, the maximum amount of debt that can be borrowed is controlled by the maximum special taxes that can be levied through Special Tax A (facilities), as capped in the RMA.
Once adopted, Special Tax A may only be increased by a maximum of 2 percent per year, regardless of any increases in the future costs of the construction of Authorized Facilities.
Authorized bond amounts need to provide for funding of debt service reserve funds, capitalized interest, and costs of issuanc e, in addition to facilities costs.
In the event that there are extra facilities costs that cannot be supported by Special Tax A revenue, those costs must be funded by the developer.
Note that the Authorized Facilities would allow this extra authorizat ion to be used to fund any improvements required for adaptation to sea level rise.
The extra bond authorization amount in no way reduces the availability of Special Tax B (services) revenues to mitigate any negative fiscal impact.
DOCUMENTS ATTACHED:
Attachment 1 - Written Request to Establish City of Richmond Community Facilities District No. 2022-1 (Point Molate)
Attachment 2 - Resolution of the City Council of the City of Richmond, California, Adopting Local Goals and Policies Relating to Community Facilities Districts
Attachment 3 - Resolution of Intention of the City Council of the City of Richmond, California, to Establish the City of Richmond Community Facilities District No. 2022-1 (Point Molate), and to Designate Three Improvement Areas therein, to Authorize the Levy of a Special Tax to Pay the Cost of Acquiring or Constructing Certain Facilities, Provide Certain Services and Pay for Certain Incidental Expenses and to Pay Debt Service on Bonded Indebtedness
Attachment 4 - Resolution of the City Council of the City of Richmond, California, of Intention to Incur Bonded Indebtedness Within the City of Richmond Community Facilities District No. 2022-1 (Point Molate), and Each of the Three Improvement Areas Therein
Attachment 5 - Revised Fiscal Impact Estimates for Point Molate using the Point Molate Alliance’s Strategic Economics study
Attachment 6 - Strategic Economics study provided to the Point Molate Alliance in 2020
WMTTEN REQUEST
TO ESTABLISH
CITY OF MCHMOND
COMMUNITY FACILITIES DISTRICT NO. 2022-1
(POINT MOLATE)
Honorable City Council
City of Richmond
450 Civic Center Plaza
Richmond, CA 94804
Members of the City Council:
This is a written request to create a community facilities district pursuant to the Mello-Roos Community Facilities Act of 1982, as amended (the "Act"). The undersigned, being two members of the City Council of the City of Richmond, California (the "City"), hereby state as follows:
1. Point IVIolate. The City is the fee title owner of 100% of the real property described in (i) Exhibit A-l to that certain Disposition and Development Agreement for Point Molate Mixed-Use Development, by and between the City and Winehaven Legacy LLC, a Delaware limited liability company ("Winehaven"), dated as of September 30,2020 (the "DDA") and (ii) Exhibit A to that certain Development Agreement, by and between the City and Winehaven, dated as of October 21, 2020 (the "DA" and together with the DDA, the "Development Agreements"), and depicted on the boundary map attached as Exhibit A hereto (the "Property"). The Property was fonnerly within the boundaries of Point Molate Naval Fuel Depot prior to its closure. Pursuant to the terms and conditions set forth in the Development Agreements, the City intends to convey the Property to Winehaven which will develop the Property as set forth therein, and the formation of a community facilities district by the City that encompasses the Property is a precondition to such conveyance. The Development Agreements further provide that such community facilities district shall provide for financing of the facilities and services described in Exhibit B attached hereto (the "Facilities" and "Services," respectively).
NG-U9ZQVMF2/4877-8667-6487v5/200952-0001
ATTACHMENT 1Page 674 of 827
2. Proceedings Requested. Pursuant to Section 53318(a) of the Act, the undersigned being two members of the City Council of the City hereby request that the City Council of the City institute proceedings pursuant to the Act to establish the City of Richmond Community Facilities District No. 2022-1 (Point Molate) ("CFD No. 2022-1"), and designate three improvement areas therein, to finance the Facilities and Services.
This written request is dated March Af', 2022.
^/ut^vy
Tom Butt
Mayor of the City of Richmond
y
%^^
Nathaniel Bates
Councilmember of the City of Richmond
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ATTACHMENT 1Page 675 of 827
EXHIBIT A
PROPOSED BOUNDARIES OF
CITY OF RICHMOND
COMMUNITY FACILITIES DISTRICT NO. 2022-1
(POINT MOLATE)
The proposed boundaries of the territory for inclusion in the City of Richmond Community Facilities District No. 2022-1 (Point Mo late) are depicted in the attached map.
A-l
NG-U9ZQVMF2/4877-8667-6487v5/200952-0001
ATTACHMENT 1Page 676 of 827
r\
LEGENO
VICINITY MAP
DISTRICT BOUNDARY - OTf OF RICHMOND
COMMUMTT FACILITIES DISTRICT NO. 2022-1
(POIMT UOLATE FACtUTIES AND SERVICES)
CITT CLERK. CIPf OF R1CHMOND"
I HEREBY CERTIFY THAT TOE VffTHIN MAP SHOWiHO PROPOSED
BOUNDARIES OF CITY OF RtCHUOHD COUMUNITi' FAGiUTES QISTRICT NO. 2022-1 (POINT MOLATE FAdUTIES AND SERVICES), CIPT OF RICHMONO.
COUNTY OF CONTRA COSTA, STATE OF CAUFORNlA. WAS APPROVED SY TOE QTf COUNQL OF THE CITV OF RICHMOND. AT A MBCTNG THEREOF,H'EL&'OH ft<'ZlJlDA:rW'_L_Z^"7'20'_.'.''BT''ITC''RES'OUji6N No.
FILED THIS _ &AY OF
IN BDOK OF MAPS OF
IN THE OFFICE OF THE COUNT!' RECORDER OF THE COLMTY OF CONTRA COSTA, STATE OF CALIFDRNtA,
COUNTY RECORDER, "COUHTT OF CONTRA COSTA
APN TABLE
IMPROVDIENT AREA NO. t 561-100-1)08 (PORTION)
NPROVBIENT AREA NO, 2 5S1-10CM3Q8 (PORTION)
IMPROVEMENT AREA NO. 3 5S1-100-OOB (PORTION)
CFD HO. M22-1 SG1-100-OOS
MOTES:
FOR PARTICULARS OF UNES AND DtMENSIOHS OF PARCELS. REFERENCE IS
MADE TO THE MAPS AND SEEDS OF RECORD IN THE OFFICIAL RECORDS OF THE CODHTY OF CGNTCA COSTA. THOSE MAPS AND DEEDS SHM± GOVERN FOP AU. CETAILS COWCERNING THE IWES AND DIMEN30H5 OF SUCH PARCS.S.
BE USED TO PAY FOR CLEANUP OF
PROPOSED BOUNDARIES OF CirT OF
RICHMOND COW1WIUNITY FACILITIES DISTRICT
NO. 2022-1 (POINT MOLATE FACILITIES AND
SERVICES), CITf OF RICHMOND, COUNT«r OF
CONTRA COSTA, STATE OF CALIFORNIA
SCALE: MOT TO SCALE
CITY CLERK, CIPf OF RICHMOND
B«F HO. 20166050
FEBRUARY 2022
1730 N. FIRST STREET
SUITE 600
SAN JOSE, CA 95112
408.467-911)0
www.bkfcon g^ , op ,
NG-U9ZQVMF2/4877-8667-6487v5/200952-0001
A-2
ATTACHMENT 1
EXHIBIT B
LIST OF FACILITIES
CFD No. 2022-1, on behalf of itself and each improvement area thereof, is hereby authorized to finance the costs of the purchase, construction, expansion, improvement, or rehabilitation of facilities permitted under the Mello-Roos Act from the proceeds of special taxes and bonds issued by CFD No. 2022-1, including, without limitation:
CITY FACILITIES
The types of City Facilities that are proposed to be financed by CFD No. 2022-1 with the proceeds of special taxes and bonds issued by CFD No. 2022-1 consist of backbone infrastructure needed for new and existing development (both within the project limits as well as offsite improvements), such as roadway, bridge, sewer, dry utilities, storm drain, sea wall, street and parkway landscaping, curb and gutter, medians, median landscaping, traffic signals, entry signage, parks, trails, police facilities, fire facilities, and appurtenances and appurtenant work.
The description of City Facilities is general in nature. The final naUire and location of the City Facilities will be determined upon preparation of final plans and specifications. Addition, deletion or modification of descriptions of the City Facilities may be made consistent with the requirements of the City Council of the City, CFD No. 2022-1 and the Act.
EAST BAY MUNICIPAL UTILITIES DISTRICT ("'EBMUD") FACILITIES The proposed EBMUD Facilities include the construction, purchase, modification, expansion, improvement and/or rehabilitation of public facilities to be owned and operated by EBMUD including, without limitation, water system facilities and acquisition of water system capacity.
The EBMUD Facilities listed herein are representative of the types of facilities authorized to be financed by CFD No. 2022-1. Detailed scope and limits of specific projects will be determined as appropriate, consistent with the standards of the EBMUD. Addition, deletion or modification of descriptions of the EB MUD Facilities may be made consistent with the requirements of the governing board of the EBMUD, CFD No. 2022-1 and the Act. The Facilities are necessary for CFD No.2022- 1 (and each improvement area thereof) and are generally intended to comply with the requirements of the City.
The description of Facilities is general in nature. The final nature and location of the Facilities will be determined upon preparation of final plans and specifications.
Any Facility authorized to be financed by CFD No. 2022-1 may be financed through the construction and acquisition of the Facility or through the payment of fees for such Facility.
The Facilities constructed or acquired may be located within or outside CFD No. 2022-1.
The Facilities to be financed shall include all hard and soft costs associated with the Facilities, including the costs of the acquisition of land and rights-of-way, the costs of design, engineering and planning, the costs of any environmental or traffic studies, surveys or other reports, costs related to B-l
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landscaping and irrigation, soils testing, permits, plan check, and inspection fees, insurance, legal and related overhead costs, coordination and supervision and any other costs or appurtenances related to any of the foregoing as may be further defined in one or more acquisition agreements with the developer of the property in CFD No.2022-1.
LIST OF SERVICES
The types of Services that are proposed to be provided by CFD No. 2022-1 and funded with the proceeds of special taxes levied by CFD No. 2022-1 consist of services permitted to be financed under the Mello-Roos Community Facilities Act of 1982 including, without limitation, police and fire protection, ambulance and paramedic services, street sweeping, traffic signal maintenance and the maintenance of City-owned parks, parkways and open spaces, lighting, flood and storm protection services and the operation of storm drainage systems. All of the services to be financed must be in addition to those provided within the boundaries ofCFD No. 2022-1 before CFD No. 2022-1 is created, and shall not supplant services already available within that territory when CFD No. 2022-1 is created.
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NG-U9ZQVMF2/4875-9499-7268v2/200952-0001
RESOLUTION NO. ___
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RICHMOND,
CALIFORNIA, ADOPTING LOCAL GOALS AND POLICIES RELATING TO
COMMUNITY FACILITIES DISTRICTS
WHEREAS, the City of Richmond (the “City”) is a municipal corporation and a charter city that is duly organized and existing under and pursuant to the C onstitution and laws of the State of California; and
WHEREAS, the City desires to form one or more community facilities districts pursuant to the Mello-Roos Community Facilities Act of 1982, as amended (the “Act”) to finance certain public facilities to be owned and operated by the City and/or other public agencies and to finance certain public services; and
WHEREAS, pursuant to Section 53312.7 of the Act, the City must adopt local goals and policies relating to the use of the Act to finance public facilities prior to initiating proceedings to form a community facilities district;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF RICHMOND THAT:
Section 1. Each of the above recitals is true and correct.
Section 2. The “Statement of Goals and Policies for the Use of the Mello-Roos Community Facilities Act of 1982” of the City attached as Exhibit A hereto (the “Policies”) is hereby approved. The Policies may be amended from time to time by the City Council as necessary to comply with legal requirements or as otherwise desired by the City Council.
Section 3. The Mayor, any member of the City Council, the City Attorney, the City Manager, and other members of City staff, are hereby directed and authorized to take all actions necessary to comply with the Policies.
Section 4. This Resolution shall be effective upon its adoption .
PASSED AND ADOPTED at a regular meeting of the City Council of the City of Richmond held on the 15
th day of March, 2022.
Tom Butt,
Mayor
ATTEST:
Pamela Christian,
City Clerk
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STATE OF CALIFORNIA )
COUNTY OF CONTRA COSTA ) ss.
CITY OF RICHMOND )
I, _________, City Clerk and ex-officio Clerk of the City Council of the City of Richmond, California, do hereby certify that the whole number of the members of the City Council is five; that the above and foregoing Resolution No. ____ was duly and regularly passed and adopted at a regular meeting of the City Council held on the 15
th day of March, 2022 by the following vote:
COUNCILPERSONS AYES: ____________________________( )
COUNCILPERSONS NOES: ____________________________( )
COUNCILPERSONS ABSTAINED: ____________________________( ) COUNCILPERSONS ABSENT: ____________________________( )
Pamela Christian,
City Clerk
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EXHIBIT A
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CITY OF RICHMOND
STATEMENT OF GOALS AND POLICIES FOR THE USE OF
THE MELLO-ROOS COMMUNITY FACILITIES ACT OF 1982
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TABLE OF CONTENTS
SECTION PAGE
I. INTRODUCTION ............................................... ...................................................................... 1 II. DEFINITIONS ............................................... ........................................................................... 1 III. ELIGIBLE PUBLIC FACILITIES, SERVICES AND PRIORITIES....... ................................ 2 IV. CREDIT QUALITY REQUIRED OF BOND ISSUES .................... ........................................ 3 V. SECURITY ............................................................................................................................... 3 VI. DISCLOSURE REQUIREMENTS ................................... ........................................................ 4 VII. OTHER REQUIREMENTS FOR LAND DEVELOPER ........................................................4
VIII. EQUITY OF TAX ALLOCATION FORMULAS ....................... ............................................ 5 IX. APPRAISALS ................................................ ........................................................................... 6 X. POINT MOLATE COMMUNITY FACILITIES DISTRICT ................. ................................. 8 XI. PRIVATELY PLACED DEBT................................................................................................. 8
XII. EXCEPTIONS TO THESE POLICIES ............................. ....................................................... 9
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STATEMENT OF GOALS AND POLICIES FOR THE USE
OF THE MELLO-ROOS COMMUNITY FACILITIES ACT OF 1982
I. INTRODUCTION
The City of Richmond (the “City”) has developed the following Goals and Policies on debt financing as guidelines to assist concerned parties in followin g the City’s approach to community facilities district debt financing. It is the City’s goal to s upport projects which address a public need and provide a public benefit. Proposed projects requesting community facilities district debt financing will be evaluated to determine if such financing is financially viable and in the best interest of the City and current and future City and project residents. These Goals and Policies are designed to comply with Section 53312.7 of the Government Code.
The City will consider applications requesting the formation of community facilities districts and the issuance of bonds to finance eligible public facilities pursuant to the Mello-Roos Act. The City reserves the right to request any additional reports, informati on or studies reasonably necessary in evaluating these applications.
All City and any consultant costs incurred in evaluating applic ations requesting the establishment of Districts (as defined below) will be paid by t he applicant(s) by advance deposit increments or as otherwise agreed in writing by the City. The City shall not incur any non-reimbursable expense for processing such applications. Expenses not chargea ble to the District shall be borne by the applicant.
As a result of a judgment against the City, (i) that certain Di sposition and Development Agreement for Point Molate Mixed-use Development, dated as of September 30, 2020, by and between the City and Winehaven Legacy LLC, and (iii) that certain Development Agreement, by and between the City and Winehaven Legacy LLC, dated as of October 21, 2020, the City was obligated to form a community facilities district encompassing a portion of the area formerly known as the Point Molate Naval Fuel Depot. It is the intent of the City that these Goals and Policies govern the Point Molate CFD in addition to the other Districts formed within the City.
II. DEFINITIONS
“Account Party” means, collectively, the owner of any land within a District or improvement area, together with land owned by any affiliate.
“Bonds” means bonds authorized and issued under the Mello-Roos Community Facilities Act of 1982.
“City” means the City of Richmond.
“District” means a Community Facilities District formed under the Mello-Roos Community Facilities Act of 1982, as amended.
“Mello-Roos Act” means the Mello-Roos Community Facilities Act of 1982, as amended.
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“Point Molate CFD” means the community facilities district formed by the City tha t encompasses a portion of the area formerly known as the Point Molate Naval Fuel Depot and each improvement area designated therein.
“Point Molate Development Agreements” means (i) that certain Disposition and Development Agreement for Point Molate Mixed-use Development, dated as of September 30, 2020, by and between the City and Winehaven Legacy LLC and (ii) that certain Development Agreement, by and between the City and Winehaven Legacy LLC, dated as of October 21, 2020. “Public Facilities” means improvements authorized to be constructed or acquired un der the Mello-Roos Act including, but not limited to, fees for capital facilities imposed by public agencies as a condition to approval of the development encompassed by the District or as a condition to service the District.
“Value” or “Fair Market Value” means the amount of cash or its equivalent which property would bring if exposed for sale in the open market under conditions in which neither buyer nor seller could take advantage of a difficulty of the other and both have knowledge of all of the uses and purposes to which the property is adapted and for which it is c apable of being used and of the enforceable restrictions upon uses and purposes.
III. ELIGIBLE PUBLIC FACILITIES, SERVICES AND PRIORITIES It shall be a goal and policy of the City that Public Facilitie s eligible to be financed must be owned by a public agency or public utility and must have a useful life of at least five (5) years. In any event, no bonds shall be issued with a maturity date greater than the average useful life of the facilities or improvements being financed. The development proposed within a District must be consistent with the City’s general plan, if any, and must have received any required zoning or specific plan approvals.
The list of Public Facilities eligible to be financed by a District include, but are not limited to, the following:
Streets, highways and bridges
Street lighting
Traffic signals and safety lighting
Parks
Governmental facilities
Sanitary sewer facilities
Storm drain facilities
Potable and reclaimed water facilities
Flood control facilities
Libraries
Public utilities
Police and fire protection facilities
Recreation facilities, including open space
Biological mitigation measures involving land
acquisition, dedicating and revegetation
The City has final determination as to any facility’s eligibility for financing, as well as the prioritization of facilities to be included within or for the benefit of a District. The City may enter into joint ATTACHMENT 2 - EXHIBIT A
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community facilities agreements with other public entities for the purpose of financing any Public Facilities.
The foregoing list of eligible Public Facilities may include facilities included as part of the City’s or other public agencies’ development impact fee programs to the extent permitted by the Mello- Roos Act.
When it is determined by the City that only impact fees are to be financed by a series of Bonds, the City may collect a premium of the total fees to be financed. The amount of such premium shall be determined by the City. The City may use the premium to finance Public Facilities and improvements directly benefiting and identified by the City as the most nece ssary to serve the specific needs of the applicable District.
Additionally, a District may finance any one or more of the typ es of services specified in Section 53313 of the Act. Priority for District financing shal l be given to services provided by or directly benefiting the City and, if multiple services are to be financed, with no service having priority over another service; provided, however, the City has final determination as to any service’s eligibility for financing. The City shall not finance services on behalf of other public agencies.
IV. CREDIT QUALITY REQUIRED OF BOND ISSUES
In evaluating a proposed Bond issuance, it shall be a goal and policy of the City that the City’s independent financing consultant, special tax consultant and/or a municipal advisor has reviewed and approved the proposed issuance of the Bonds.
Unless waived by the City Council, or as it relates to privately placed debt, as provided for in Section XI below, prior to the issuance of Bonds, the following credit criteria shall be satisfied: the ratio of the value of all parcels of property subject to the special tax securing the Bonds to the amount of outstanding community facilities district or assessment dist rict bonds attributable to such parcels (the “Value-to-Lien Ratio”) may not be less than five-to-one (5 : 1 ) . T h e f a i r m a r k e t v a l u e o f t h e property within the District or improvement area for purposes of determining the foregoing ratio will be determined based on the appraised value of the property or the assessed value of the property based on the valuation made by an appraiser selected by the City, with a valuation date preceding the issuance of the Bonds by not more than ninety (90) days, and as described more fully in Section IX.
V. SECURITY
It shall be a goal and policy of the City to require sufficient security in connection with the development within each District. To this end:
A. Value-to-Lien Ratios and Status of Development. Unless waived by the City Council, or as it relates to privately placed debt, as provided for in Section XI below, prior to the issuance of Bonds, the following credit criteria shall be satisfied: the ratio of the aggregated total value of all parcels of property subject to the special tax securing the Bonds to the amount of outstanding community facilities district or assessment district bonds attributable to such parcels (the “Value-to-Lien Ratio”) may not be less than five-to-one (5:1). The fair market value of the property within the District or improvement area for purposes of determining the foregoing ratio will be determined based on the assessed value of the property or the appraised value of the property based on the appraisal made by an appraiser selected ATTACHMENT 2 - EXHIBIT A
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by the City with a valuation date within ninety (90) days of th e issuance of the Bonds, as more fully described in Section VII.
B. Letter of credit requirement. Unless waived by the City Cou ncil, in cases where the aggregate maximum special taxes on taxable developed property within a CFD directly securing a CFD bond issue is less than 80% of maximum annual debt service on t hat bond issue, the developers or owners of the undeveloped property securing that bond issue will be required to post a letter of credit.
The amount of the letter of credit shall be equal to 2 years of the maximum annual debt service on the bond issue, less 2 years of the maximum special taxes on developed taxable property securing the bond issue. Developed property shall be determined based on proof of Permit closure and/or Certificates of Occupancy. The letter of credit shall be from a bank or other financial institution rated A or better by Standard & Poor's or Moody's. The amount of the letter of credi t may be reduced annually, based on the sizing formula described above.
VI. DISCLOSURE REQUIREMENTS
It shall be a goal and policy of the City to require sufficient developer disclosure and compliance with all applicable federal securities laws in connection with each District. To this end:
A. Disclosure Requirement for Developers. The applicant will be required to demonstrate, to the satisfaction of the City, that there will be full disclosur e of the Mello-Roos special taxes and any other special tax, assessment, overlapping special taxes or assessment of other districts, or other liens on individual parcels to existing and future property owners, and to prospective purchasers of property including interim purchasers and sales to merchant builders (Section 53341.5 of the Government Code). In addition to all requirements of law, the City shall require the applicant to provide disclosure of such information as the City deems appropriate to the purchasers of property within the District or improvement area, with respect to the existence of the District or improvement area, maximum and/or backup special taxes to be levied within the District or improvement area, facilities to be constructed, the foreclosure process and the terms and conditions of Bond is sues on behalf of the District. Such disclosure shall include home buyer notifications requiring signature prior to home purchases, as well as methods to notify subsequent home purchasers.
The land developer shall be required to disclose (a) all prior experience with CFDs in California, including subsidiaries or affiliated companies, (b) any tax delinquencies with respect to any such prior CFDs, (c) any foreclosures against their properties within such prior CFDs, and any bankruptcy filings by the land developer, including subsidiaries and affiliated companies, with respect to any such prior CFDs.
B. Compliance with Federal Securities Laws. The City shall use all reasonable means to ensure compliance with applicable federal securities laws in connectio n with the issuance of debt and the provision of annual information regarding any District establis hed by the City with respect to which Bonds have been issued, including requiring any developer in a District or improvement area who is material to the Bond issue to transmit appropriate information to the City or its designee for disclosure to Bond investors.
VII. OTHER REQUIREMENTS FOR LAND DEVELOPERS
The City may make the following requirements from land developers with respect to the issuance of any bonds secured by special taxes from a CFD:
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A. The land developer may be required to fund all major projects initially, and then be reimbursed in full or in part by bond proceeds through an acquisition agreement.
B. A reserve for future foreclosure and/or bankruptcy expense s related to the applicable District of at least $100,000 shall be funded by closing on the first series of Bonds from either costs of issuance or a developer cash contribution. If no foreclosure actions or bankruptcy actions are required prior to refunding or pay off of the first series of Bonds, such reserve can be released back to the developer, if funded by the developer, or re-allocated to other purposes, if funded by costs of issuance.
C. The City may charge a fee of up to $100,000, payable from p roceeds of the bond issue, to reimburse itself for the costs of staff time and other expenses related to the issuance of bonds for a CFD.
VIII. EQUITY OF TAX ALLOCATION FORMULAS
It shall be a goal and policy of the City that the rate and method of apportionment of the special tax must be both reasonable and equitable in apportioning the c osts of the Public Facilities to be financed to each of the parcels within the boundaries of the pr oposed District or improvement area.
The City prefers that this apportionment of costs be based on the benefit that each parcel is to receive from the Public Facilities.
The rate and method of apportionment of the special tax is to p rovide for the administrative expenses of the proposed District or improvement area, including, but not limited to, those expenses necessary for the enrollment and collection of the special tax and Bond administration.
All property not otherwise exempted by the Mello-Roos Act or th e rate and method of apportionment of special tax from taxation shall be subject to the special tax. At the time of formation of the District or improvement area, exemptions from the special tax may be given to parcels which are publicly owned, are held by a property owners’ association, are used for a public purpose such as open space, are affected by public utility easements making impractical their utilization for other than the purposes set forth in the easements, or have insufficient value to support bonded indebtedness.
The annual special tax levy on each residential parcel develope d to its final land use shall be approximately equal each year, except that a variation for administrative expenses and delinquencies will be allowed. It is further the policy of the City to comply with the provisions of Section 53321 of the Mello-Roos Act with respect to the escalation of maximum special taxes.
The maximum annual special tax, together with ad valorem property taxes, special assessments or taxes for an overlapping financing district, or any other charges, taxes, or fees payable from and secured by the property, including potential charges, taxes, or fees relating to authorized but unissued debt of public entities other than the City, in relation to the expected assessed value of each parcel upon completion of the private improvements to the parcel is of great importance to the City in evaluating the proposed financing.
It is the objective of the City that maximum special taxes or assessments on residential owner- occupied property, when taken together with ad valorem taxes, any other special taxes levied pursuant to the Mello-Roos Act and assessments applicable to such property, do not exceed in any year in which ATTACHMENT 2 - EXHIBIT A
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bonds are issued for the applicable District or improvement area two percent (2%) of the greater of the appraised value or assessed value of such property.
In evaluating whether this objective can be met, the City will consider the aggregate public service needs for the proposed project. It will consider what public improvements the applicant is proposing to be financed in relation to these aggregate needs and decide what is an appropriate amount to extend in public financing to the identified public improvements.
This evaluation will be based on information obtained from other affected taxing entities that have jurisdiction to impose a levy on the proposed project.
The total maximum annual special taxes that can be collected fr om taxable property in a District or improvement area, taking into account any potential changes in land use or development density or rate, and less all projected administrative expenses , must be equal to at least one hundred ten percent (110%) of the gross annual debt service on any Bonds issued by or on behalf of the District or improvement area in each year that said Bonds will remain outstanding.
The rate and method of apportionment of the special tax may include a provision or a backup tax to protect against any changes in development that would result in insufficient special tax revenues to meet the debt service requirements of the district. Such ba ckup tax shall be structured in such a manner that it shall not violate any provisions of the Mello-Roos Act regarding cross-collateralization limitations for residential properties.
A formula to provide for the prepayment of the special tax may be provided; however, neither the City nor the District shall be obligated to pay for the cost of determining the prepayment amount which is to be paid by the applicant.
IX. APPRAISALS
It shall be a goal and policy of the City to establish a uniform set of standards applicable to all appraisals undertaken in connection with the development of a District. To this end:
A. Definition of Appraisal. An appraisal is a written statement i ndependently and impartially prepared by a qualified appraiser setting forth an opinion of defined value of an adequately described property as of a specific date, supported by the presentation and analysis of relevant market information.
B. Absorption Study and Discounted Present Value Cash F low Analysis. Any appraisal for a CFD financed land development project with an estimated p roject build out schedule of more than one year shall include the following:
(1) The estimated build out period shall be based on an absorp tion study by an experienced consultant selected by the City and contracting wit h the City. The cost of the absorption study shall be paid for by the land developer.
(2) One of the bases for determining the appraised value of pr operty within a District shall be a discounted present value cash flow analysis based on the results of the absorption study.
C. Standards of Appraisal. The format and level of documentation for an appraisal depend on the complexity of the appraisal problem. A detailed appraisal shall be prepared for complex ATTACHMENT 2 - EXHIBIT A
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appraisal problems. A detailed appraisal shall reflect nationa lly-recognized appraisal standards, including, to the extent appropriate, the Uniform Appraisal Sta ndards for Federal Land Acquisition.
An appraisal must contain sufficient documentation, including valuation data and the appraiser’s analysis of the data, to support his or her opinion of value. At a minimum, the appraisal shall contain the following items:
(1) The purpose and/or the function of the appraisal, a definition of the estate being appraised, and a statement of the assumptions and limiting conditions affecting the appraisal.
(2) An adequate description of the physical characteristics of the property being appraised, location, zoning, present use, an analysis of the highest and best use. (3) All relevant and reliable approaches to value consistent with commonly accepted professional appraisal practices. If a discounted cash flow analysis is used, it should be supported with at least one other valuation method such as a market approach using sales that are at the same stage of land development. If more than one approach is utilized, there shall be an analysis and reconciliation of approaches to value that are sufficient to support the appra iser’s opinion of value.
(4) A description of comparable sales, including a description of a ll relevant physical, legal, and economic factors such as parties to the transaction, source, and method of financing, and verification by a party involved in the transaction. (5) A statement of the value of the real property.
(6) The effective date of valuation, date of appraisal, signature, and certification of the appraiser.
D. Conflict of Interest. No appraiser or review appraiser shall have any interest direct or indirect in the real property being appraised for the Agency th at would in any way conflict with the preparation or review of the appraisal. Compensation for makin g an appraisal shall not be based on the amount of the valuation.
E. Community Facilities District Appraisal Premises. The valuatio n of proposed community facilities districts should be based on three premises:
(1) Raw Land Value (Premise No. 1). The total land within the proj ect is valued “as is”
(a) With any existing infrastructure.
(b) Without proposed infrastructure being financed.
(c) With existing parcel configuration.
(d) Considering planned densities allowed by the specific plan of the project.
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This is a typical type of land valuation.
(2) Project Build-Out Value (Premise No. 2). The total land within the project is valued under projected conditions:
(a) With proposed infrastructure being financed completely. (b) At the planned densities allowed by the specific plan. (c) Land development is at the stage of being marketed to merch ant builders or tentative tract maps ready to be filed.
This is a projected value based on project plans predicated on market conditions continuing as projected.
(3) Bulk Land Value (Premise No. 3). The total land within the project is valued under projected conditions:
(a) With proposed infrastructure being financed completely. (b) With existing parcel configuration.
(c) Considering planned densities allowed by the specific plan of the project.
X. POINT MOLATE COMMUNITY FACILITIES DISTRICT
To the extent the formation, levy of special taxes, issuance of bonds, or other provisions with respect to the Point Molate CFD as required pursuant to the ter ms of the Point Molate Development Agreements and any acquisition or other agreement executed by the City in connection the Point Molate CFD is inconsistent with these Goals and Policies, the p rovisions of these Goals and Polices that are inconsistent therewith are hereby waived with respect to the Point Molate CFD.
XI. PRIVATELY PLACED DEBT
If determined to be in its best interests, the City may cause the issuance of Bonds by a District on a private placement basis. City staff shall be delegated the authority to negotiate and finalize the terms of any such privately placed debt. However, the followin g requirements shall apply to all privately placed debt, unless otherwise waived pursuant to Section XI below:
A. Privately placed debt shall only be sold to investors who sign an Investor Letter in form and substance acceptable to the City.
B. After the issuance of any privately placed debt, such debt s hall only be transferred to subsequent transferees who sign an Investor Letter in form and substance acceptable to the City.
C. Unless waived by the City Council, prior to the issuance of the privately placed debt, the following credit criteria shall be satisfied: the ratio of the aggregated total value of all parcels of property subject to the special tax securing the Bonds to the amount of outstanding ATTACHMENT 2 - EXHIBIT A
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community facilities district or assessment district bonds attr ibutable to such parcels (the “Value-to-Lien Ratio”) may not be less than two and 1/2-to-one (2.5:1).
D. No letter of credit, as described in Section V, shall be required for a private placement that otherwise meets the criteria of this section.
XII. EXCEPTIONS TO THESE POLICIES
The City may find in limited and exceptional instances that a waiver of any of the above stated policies, or portions thereof, is reasonable given identified special City benefits to be derived from such waiver. Such waivers are granted only by action of the City Council based upon specific public purpose and/or health and safety findings.
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RESOLUTION NO. ___
RESOLUTION OF INTENTION OF THE CITY COUNCIL OF THE CITY OF
RICHMOND, CALIFORNIA, TO ESTABLISH THE CITY OF RICHMOND COMMUNITY FACILITIES DISTRICT NO. 2022-1 (POINT MOLATE), AND TO
DESIGNATE THREE IMPROVEMENT AREAS THEREIN, TO AUTHORIZE THE
LEVY OF A SPECIAL TAX TO PAY THE COST OF ACQUIRING OR
CONSTRUCTING CERTAIN FACILITIES, PROVIDE CERTAIN SERVICES AND
PAY FOR CERTAIN INCIDENTAL EXPENSES AND TO PAY DEBT SERVICE
ON BONDED INDEBTEDNESS
WHEREAS, the City of Richmond, California (the “City”) is the f ee title owner of 100% of the real property (the “Property”) described in (i) Exhibit A-1 to that certain Disposition and Development Agreement for Point Molate Mixed-Use Development, b y and between the City and Winehaven Legacy LLC, a Delaware limited liability company (“Winehaven”), dated as of September 30, 2020 (the “DDA”), and (ii) Exhibit A to that cert ain Development Agreement, by and between the City and Winehaven, dated as of October 21, 2020 (the “DA” and together with the DDA, the “Development Agreements”); and
WHEREAS, the Property was formerly within the boundaries of Poi nt Molate Naval Fuel Depot (“Naval Fuel Depot”) prior to its closure and is owned by the City; and WHEREAS, pursuant to the terms and conditions set forth in the Development Agreements, subsequent to formation of the Community Facilities District (as defined below), the City intends to convey the Property to Winehaven which will develop the Property as set forth therein; and
WHEREAS, the Development Agreements provide for the establishme nt of a community facilities district, and multiple improvement areas therein, to provide for financing of certain facilities and services described therein; and
WHEREAS, pursuant to Section 53318(a) of the Mello-Roos Community Facilities Act of 1982, as amended, commencing with Section 53311 of the Government Code (the “Act”), the City Council of the City (the “City Council”) has received a wr itten request from two of its City Councilpersons to commence proceedings to form a community facilities district with boundaries coterminous with the Property to be known as the “City of Richm ond Community Facilities District No. 2022-1 (Point Molate)” (the “Community Facilities District” or “CFD No. 2022-1”), and to designate three improvement areas therein, to finance (1 ) the purchase, construction, expansion, improvement or rehabilitation of the facilities desc ribed in Exhibit B hereto (which attachment is incorporated herein by this reference) (collectiv ely, the “Facilities”), including, but not limited to, those facilities to be owned and operated by the City or utility companies, including all furnishings, equipment and supplies related there to (collectively, the “City Facilities”), which City Facilities have a useful life of five years or longer, and those facilities described in Exhibit B hereto to be owned and operated by the East Bay Municipal Utility District (“EBMUD”), including all furnishings, equipment and supplies re lated thereto (collectively, the “EBMUD Facilities,”), which EBMUD Facilities have a useful life of five years or longer, (2) the services described in Exhibit B hereto (collectively the “Servi ces”) and (3) the incidental expenses to be incurred in connection with financing the Facili ties and/or Services, and forming the Community Facilities District and designating the three improvement areas therein, and ATTACHMENT 3
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administering the Community Facilities District, and the three improvement areas therein (the “Incidental Expenses”); and
WHEREAS, it is the intention of the City Council to consider fi nancing the Facilities, Services and the Incidental Expenses through the formation of the Community Facilities District, and the three improvement areas therein, and the sale of bonds (excluding the Services) in an amount not to exceed $292,000,000, consisting of $61,000,000 fo r Improvement Area No. 1 of the Community Facilities District, $47,000,000 for Improvement Area No. 2 of the Community Facilities District and $184,000,000 for Improvement Area No. 3 of the Community Facilities District (collectively, the “Obligations”) and the levy of a special tax in each improvement area to finance Facilities directly and to pay debt service on the Obli gations relating to the applicable improvement area, provided that the aggregate bond authorization and special tax levy are approved at an election to be held for each improvement area therein; and WHEREAS, the legal descriptions for Improvement Area No. 1 of t he Community Facilities District, Improvement Area No. 2 of the Community Facilities District and Improvement Area No. 3 of the Community Facilities District are included in Exhibit A hereto.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF RICHMOND THAT:
Section 1. Each of the above recitals is true and correct.
Section 2. Intention. The City Council declares its intention to conduct proceedings pursuant to the Act for the establishment of the Community Faci lities District with the exterior boundaries coterminous with the Property, and to designate the three improvement areas therein. It is further proposed that the boundaries of the Com munity Facilities District, and the three improvement areas therein, shall be as described in Exhib it A hereto. The City Clerk is hereby directed to sign the original boundary map of the Commun ity Facilities District and record it with all proper endorsements thereon with the County Recorder of the County of Orange within 15 days after the adoption of this resolution, all as required by Section 3111 of the Streets and Highways Code of the State of California.
Until the Property is conveyed to Winehaven, the Property owned by the City that is intended to be conveyed to Winehaven will be subject to the spe cial tax of the Community Facilities District on the same basis as private property withi n the Community Facilities District, and the City hereby affirmatively waives any defense based on the fact of public ownership of the Property currently owned by the City, to any action to fore close on such Property in the event of nonpayment of the special tax imposed by the Community Facilities District.
Section 3. Name of the Community Facilities District. The name of the proposed Community Facilities District shall be “City of Richmond Commun ity Facilities District No. 2022- 1 (Point Molate).”
Section 4. Types of Facilities and Services to be Financed by t he Community Facilities District. The Facilities proposed to be provided within the Community Facilities District are facilities authorized by the Act. The City is authorized by law to construct, acquire, own and operate the City Facilities and to provide the Services describ ed in Exhibit B hereto for the benefit of the Community Facilities District. EBMUD is authori zed by law to construct, acquire, own and operate the EBMUD Facilities described in Exhibit B her eto. The City Council hereby finds and determines that the description of the Facilities, Se rvices and Incidental Expenses ATTACHMENT 3
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herein is sufficiently informative to allow taxpayers within th e Community Facilities District to understand what the funds of the Community Facilities District may be used to finance, the Facilities, Services and Incidental Expenses expected to be inc urred, including the cost of planning and designing the Facilities, the costs of forming the Community Facilities District, and the three improvement areas therein, issuing bonds, levying and collecting a special tax within each improvement area of the Comm unity Facilities District and the annual administration costs of the Community Facilities District. The City Council hereby finds that the proposed Facilities and Services are necessary to meet increased demands placed upon the City and EBMUD as a result of development expected to occur in the Community Facili ties District. The Facilities may be acquired from one or more of the property owners as complete d facilities or may be constructed by or on behalf of the City or EBMUD and paid for with special taxes or bond proceeds. Any portion of the Facilities may be financed through a lease or lease-purchase arrangement if the City or EBMUD hereafter determines that such arrangement is of benefit to the City or EBMUD.
Section 5. Special Taxes. Except where funds are otherwise ava ilable, it is the intention of the City Council to levy annually in accordance with the procedures contained in the Act a special tax, secured by a continuing lien against all non -exempt real property in each improvement area of the Community Facilities District, sufficient to pay for the Facilities, Services and Incidental Expenses and the principal and interest and other periodic costs of Obligations issued to finance the Facilities and Incidental Exp enses, including the establishment and replenishment of any reserve funds deemed necessary by the City, and any remarketing, credit enhancement and liquidity facility fees (including such fees for instruments which serve as the basis of a reserve fund in lieu of cash) of the Community Facilities District. The rate and method of apportionment for and manner of collection of the spe cial tax in each of Improvement Area No. 1 of the Community Facilities District, Improvement Ar ea No. 2 of the Community Facilities District and Improvement Area No. 3 of the Community Facilities District is described in detail in Exhibits C, D and E attached hereto (which attachm ents are incorporated herein by this reference). Exhibits C, D and E allow each landowner with in the Community Facilities District to estimate the maximum amount of special taxes that m ay be levied annually against each parcel to be included in the applicable improvement area.
If special taxes within an improvement area of the Community Fa cilities District are levied against any parcel used for private residential purposes , (i) the maximum special tax rate shall not be increased except to the extent permitted in the ap plicable rate and method included as Exhibits C, D or E hereto, (ii) such special tax shall not b e levied later than the 2081-82 Fiscal Year for the component of the special tax used to finance Facilities and Incidental Expenses and for as long as necessary to meet the special tax r equirement for Services, and (iii) under no circumstances shall such special tax be increase d in any fiscal year as a consequence of delinquency or default by the owner of any other parcel or parcels within such improvement area by more than ten percent (10%) above the amoun t that would have been levied in that fiscal year had there never been any such delinquencies or defaults.
The special tax in each improvement area is based on the cost of making the Facilities and Services available to each parcel of real property within s uch improvement area. The City Council hereby determines the rate and method of apportionments of the special tax set forth in Exhibits C, D and E to be reasonable. Each special tax is appo rtioned to each parcel on the foregoing basis pursuant to Section 53325.3 of the Act; and suc h special tax is not on or based upon the value of real property. In the event that a portion of the property within an improvement area shall become fo r any reason exempt, wholly or partially, from the levy of the special tax specified in Exhibits C, D or E, as applicable, the City Council shall, on behalf of the ATTACHMENT 3
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Community Facilities District, cause the applicable special tax levy to be increased, subject to the limitation of the maximum special tax for a parcel as set forth in Exhibits C, D or E, as applicable, to the extent necessary upon the remaining property within such improvement area which is not exempt in order to yield the special tax revenues required for the purposes described in this Section. The obligation to pay special taxes may be prepaid as provided in the rate and method of apportionment set forth in each of Exhibits C, D and E, as such rate and method may be amended hereafter.
Section 6. Public Hearing. A combined public hearing (the “Hea ring”) on the establishment of the Community Facilities District, and the des ignation of three improvement areas therein, and for each improvement area, the proposed rate and method of apportionment of the special tax and the proposed issuance of Obligations to finance the Facilities and the Incidental Expenses shall be held at 6:30 p.m., or as soon thereafter as practicable, on April 19, 2022, at the City Council’s Chambers, 450 Civic Center Plaza, Richmond, California. If the City Council determines to form the Community Facilities District, a nd designate the three improvement areas therein, a special election will be held in e ach improvement area to authorize the issuance of the Obligations and the levy of the s pecial tax in accordance with the procedures contained in Government Code Section 53326. If such election is held, the proposed voting procedure at the election will be a landowner v ote with each landowner (including the City pursuant to Section 53317(f) of the Act) who is the owner of record of land within each improvement area at the close of the Hearing, or th e authorized representative thereof, having one vote for each acre or portion thereof owned within such improvement area.
Ballots for the special election may be distributed by mail or by personal service.
At the time and place set forth above for the Hearing, the City Council will receive testimony as to whether the Community Facilities District, and the three improvement areas therein, shall be established, whether special taxes shall be l evied in accordance with the proposed rate and method of apportionment of the special tax wi thin the applicable improvement area, and whether Obligations shall be issued within the applicable improvement area to finance Facilities and Incidental Expenses of the Community Facilities District.
At the time and place set forth above for the Hearing, any inte rested person, including all persons owning lands or registered to vote within each improvement area of the Community Facilities District, may appear and be heard.
Section 7. Notice. The City Clerk is hereby authorized and dir ected to publish a notice (the “Notice”) of the Hearing pursuant to Section 6061 o f the Government Code in a newspaper of general circulation published in the area of the C ommunity Facilities District. The Notice shall contain the text or a summary of this Resolution, the time and place of the Hearing, a statement that the testimony of all interested persons or tax payers will be heard, a description of the protest rights of the registered voters and landowners i n each improvement area of the Community Facilities District and a description of the proposed voting procedure for the election required by the Act. Such publication shall be completed at least seven (7) days prior to the date of the Hearing.
Section 8. Reports re Facilities and Services. The Director of Public Works of the City is hereby directed to study the Community Facilities District and, at or before the time of the Hearing, file a report with the City Council containing a brief description of the facilities and services by type which will in his or her opinion be required t o meet adequately the needs of the Community Facilities District and an estimate of the cost of pr oviding those facilities and services.
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Section 9. Advances of Funds. The City may accept advances of funds or work-in- kind from any source, including, but not limited to, private persons or private entities, for any authorized purpose under the Act, including, but not limited to , paying any cost incurred by the City in creating the Community Facilities District. The City may enter into an agreement with the person or entity advancing the funds or work-in-kind for the Community Facilities District, to repay all or a portion of the funds advanced, or to reimburse the person or entity for the value, or cost, whichever is less, of the work-in-kind, as determined by the City Council, with or without interest.
Section 10. Maximum Bonded Indebtedness. The reasonably expect ed maximum aggregate principal amount of the Obligations is Two Hundred Ni nety-Two Million Dollars ($292,000,000), consisting of Sixty-One Million Dollars ($61,00 0,000) for Improvement Area No. 1 of the Community Facilities District, Forty-Seven Million Dol lars ($47,000,000) for Improvement Area No. 2 of the Community Facilities District and One Hundred Eighty-Four Million Dollars ($184,000,000) for Improvement Area No. 3 of the Community Facilities District.
Section 11. Reservation of Rights. Except to the extent limited in any bond resolution or trust indenture related to the issuance of Obligations, the City Council hereby reserves to itself all rights and powers set forth in Section 53344.1 of the Act (relating to tenders in full or partial payment).
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Section 12. Effective Date. This Resolution shall be effective upon its adoption.
PASSED AND ADOPTED at a regular m eeting of the City Council of the City of Richmond held on the 15th day of March, 2022.
Tom Butt,
Mayor
ATTEST:
Pamela Christian,
City Clerk
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STATE OF CALIFORNIA )
COUNTY OF CONTRA COSTA ) ss.
CITY OF RICHMOND )
I, _________, City Clerk and ex-officio Clerk of the City Council of the City of Richmond, California, do hereby certify that the whole number of the memb ers of the City Council is five; that the above and foregoing Resolution No. ____ was duly and r egularly passed and adopted at a regular meeting of the City Council held on the 15th day o f March, 2022 by the following vote:
COUNCILPERSONS AYES: ____________________________( )
COUNCILPERSONS NOES: ____________________________( )
COUNCILPERSONS ABSTAINED: ____________________________( ) COUNCILPERSONS ABSENT: ____________________________( )
Pamela Christian,
City Clerk
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EXHIBIT A
DESCRIPTION OF THE TERRITORY OF THE
PROPOSED COMMUNITY FACILITIES DISTRICT
AND EACH IMPROVEMENT AREA THEREIN
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Boundaries of Proposed Improvement Area No. 1:
The land referred to herein is situated in the City of Richmond, Contra Costa County, State of California, and is described as follows:
Being all of Disposal Areas 4, 6 and 7, and a portion of Disposal Areas 1 and 2 as described in that certain Quitclaim Deed, recorded September 30, 2003, as Do cument Number 2003- 0489200 (2003-0489200), Official Records of Contra Costa County , also being all of Disposal Area 5, and a portion of Disposal Area 10 as described in that certain Quitclaim Deed, recorded March 29, 2010, as Document Number 2010-0060367 (2010-0060367), Official Records of Contra Costa County, more particularly described as follows:
BEGINNING at the most easterly corner of said Disposal Area 7 (2003-0489 200), at a found 6- inch concrete monument with brass pin as referenced on the Record of Survey, filed for record May 14, 1975, in Book 59 of Licensed Land Surveyor’s Maps at page 10 (59 LSM 10), Contra Coast County Records;
Thence leaving said corner southwesterly along the southeasterl y line thereof, South 56°35'43” West, 2,151.38 feet to an angle point on the southerly line of said Disposal Area 4 (2003- 0489200);
Thence continuing along said southerly line South 87°53'09" West, 114.97 feet, to a point on the westerly line of the Exterior Boundary of the San Pablo Rancho as shown on the “Map of the San Pablo Rancho, Accompanying and Forming a Part of the Final Report of the Referees in Partition,” dated September 1, 1893;
Thence continuing along said southerly boundary line South 88°4 2'31" East, 51.77 feet to an intersection with the Mean High-Water Line of San Francisco Bay , as described in said Documents (2003-0489200) (2010-0060367); thence along said Mean High-Water Line, the following meandered courses:
(1) North 05°29'37"West, 62.07 feet;
(2) North 05°48'09" West, 122.19 feet;
(3) North 14°34'41" West, 222.25 feet;
(4) North 15°07'37" West, 156.33 feet;
(5) North 14°17'10" West, 132.12 feet;
(6) North 20°05'53" West, 117.22 feet;
(7) North 23°10'52" West, 133.84 feet;
(8) North 31°06'20" West, 121.34 feet;
(10) North 29°09'30" West, 164.48 feet;
(11) North 34°19'53" West, 220.85 feet;
(13) North 89°22'42" West, 36.28 feet;
(14) North 47°02'43" West, 362.72 feet;
(15) North 68°49'46" West, 67.62 feet;
(16) North 42°53'27" West, 311.67 feet;
(17) North 50°08'38" West, 86.20 feet;
Thence leaving said Mean High-Water Line, the following 19 courses:
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1) North 40°03'08" East, 221.84 feet, to the beginning of a non-tangent curve to the left having a radius of 2,378.00 feet, from which the center bears South 40°20'58"West;
2) Along said curve, though a central angle of 00°35'41" an arc length of 24.68 feet; 3) North 50°14'43"West, 172.02 feet to the beginning of a tange nt curve to the left having a radius of 278.00 feet;
4) Along said curve, through a central angle of 21°24'26" an ar c length of 103.87 feet;
5) North 71°39'09" West, 120.24 feet to the beginning of a tangent curve to the right having a radius of 522.00 feet;
6) Along said curve, through a central angle of 16°22'13", an a rc length of 149.14 feet to a point of compound curvature having a radius of 192.00 feet; 7) Along said curve, through a central angle of 50°45'30", an a rc length of 170.09 feet to a point of compound curvature having a radius of 522.00 feet; 8) Along said curve, through a central angle of 15°30'14", an a rc length of 141.25 feet to a point of reverse curvature having a radius of 278.00 feet; 9) Along said curve, through a central angle of 48°56’39”, an a rc length of 237.48 feet;
10) North 37°57'51" West, 187.11 feet;
11) North 52°02'09" East, 38.00 feet;
12) South 37°57'51" East, 187.11 feet to the beginning of a tan gent a curve to the right having a radius of 316.00 feet;
13) Along said curve, through a central angle of 48°56’39”, an arc length of 269.94 feet to a point of reverse curvature having a radius of 484.00 feet; 14) Along said curve, through a central angle of 15°30'14", an arc length of 130.97 feet to a point of compound curvature having a radius of 154.00 feet; 15) Along said curve, through a central angle of 50°45'30", an arc length of 136.43 feet to a point of compound curvature having a radius of 484.00 feet; 16) Along said curve, through a central angle of 16°22'13" an arc length of 138.29 feet;
17) South 71°39’09" East, 10.64 feet;
18) North 66°02’04" East, 1,098.28 feet;
19) North 37°28’32" East, 894.14 feet to a point on the easterl y line of said Disposal Area 1 (2003-0489200);
Thence North 52°31’27” East 636.93 feet to the corner common to Disposal Areas 1, 6, and 7, monumented by a found 6” concrete monument with brass pin as sh own on said Record of Survey (59 LSM 10);
Thence North 33°27'25"West, 2,268.16 feet to the POINT OF BEGINNING.
Containing an area of 128.939 acres, more or less.
The basis of bearings for this description is based upon the California Coordinate System of 1983, CCS83, Zone 3, Epoch 2017.50, in accordance with California Public Resources Code Sections 8801-8819; said coordinates are based locally upon field-observed ties relative to California Spatial Reference Network Station p181. Distances are grid based. Divide by a combined scale factor of 0.99993778 to obtain ground distances.
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Boundaries of Proposed Improvement Area No. 2:
The land referred to herein is situated in the City of Richmond, Contra Costa County, State of California, and is described as follows:
Being a portion of Disposal Areas 1 and 2, as described in that certain Quitclaim Deed, recorded September 30, 2003, as Document Number 2003-0489200 (2 003-0489200), Official Records of Contra Costa County, also being a portion of Disposa l Areas 3, 10, and 13 as described in that certain Quitclaim Deed, recorded March 29, 2010, as Document Number 2010-0060367 (2010-0060367), Official Records of Contra Costa C ounty more particularly described as follows:
PARCEL 1
COMMENCING at the corner common to Disposal Areas 1, 6, and 7 (2003-0489200), at a found 6-inch concrete monument with brass pin as shown on the R ecord of Survey, filed for record February 12, 1985, in Book 76 of Licensed Land Surveyor’ s Maps at page 29 (76 LSM 29), Contra Coast County Records;
Thence northerly along the easterly line of said Disposal Area 1 (2003-0489200), North 52°31’27” West, 636.93 feet to the POINT OF BEGINNING;
Thence leaving said line, the following 11 courses:
1) South 37°28’32” West, 894.14 feet;
2) South 66°02’04" West, 1,098.28 feet;
3) North 71°39’09" West, 10.64 feet to the beginning of a tange nt curve to the right with radius 484.00 feet;
4) Along said curve, through a central angle of 16°22’13”, an a rc length of 138.29 feet to point of compound curvature having a radius of 154.00 feet; 5) Along said curve, through a central angle of 50°45’30”, an a rc length of 136.43 feet to a point of compound curvature having a radius of 484.00 feet; 6) Along said curve, through a central angle of 15°30'14”, an a rc length of 130.97 feet to a point of reverse curvature having a radius of 316.00 feet; 7) Along said curve, through a central angle of 48°56’39”, an a rc length of 269.94 feet;
8) North 37°57'51" West, 187.11 feet to a point herein referred to as POINT “A” ; 9) North 52°02’09” East, 74.90 feet;
10) North 63°39’26” East, 734.51 feet;
11) North 49°32’42” East, 907.33 feet to a point on said easter ly line of Disposal Area 1 (2003-0489200);
Thence southerly along said easterly line, South 40°27’17” East, 483.42 feet to a found 6-inch concrete monument with brass pin as shown on said Record of Survey (76 LSM 29); Thence continuing along said line, South 52°31’27” East, 244.85 feet to the POINT OF BEGINNING.
Containing an area of 35.215 acres, more or less.
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PARCEL 2
COMMENCING at the hereinabove mentioned POINT “A”,
Thence South 52°02’09” West, 38.00 feet to the POINT OF BEGINNING; Thence the following 27 courses:
1) South 37°57'51" East, 187.11 feet to the beginning of a tang ent curve to the right having a radius of 278.00 feet;
2) Along said curve, through a central angle of 48°56’39”, an a rc length of 237.48 feet to a point of reverse curvature having a radius of 522.00 feet; 3) Along said curve, through a center angle of 15°30'14", an ar c length of 141.25 feet to a point of compound curvature having a radius of 192.00 feet; 4) Along said curve, through a central angle of 50°45'30", an a rc length of 170.09 feet to a point of compound curvature having a radius of 522.00 feet; 5) Along said curve, through a central angle of 16°22'13", an a rc length of 149.14 feet;
6) South 71°39'09" East, 120.24 feet to the beginning of a tang ent curve to the right having a radius of 278.00 feet;
7) Along said curve, through a central angle of 21°24'26", an a rc length of 103.87 feet;
8) South 50°14'43" East, 162.81 feet to the beginning of a non- tangent curve to the right having a radius of 10.00 feet, from which the center bears North 14°32’41” West;
9) Along said curve, through a central angle of 30°21’58”, an a rc length of 5.30 feet to a point of compound curvature having a radius of 717.00 feet; 10) Along said curve, through a central angle of 25°53’29”, an arc length of 324.00 feet;
11) North 78°15’23” West, 202.54 feet to the beginning of a tan gent curve to the right having a radius of 687.00 feet;
12) Along said curve, through a central angle of 16°36’18”, an arc length of 199.10 feet;
13) North 61°39’04” West, 339.82 feet to the beginning of a tan gent curve to the left having a radius of 613.00 feet;
14) Along said curve, through a central angle of 20°33’41”, an arc length of 219.98 feet;
15) North 82°12’45” West, 152.36 feet to the beginning of a tan gent curve to the right having a radius of 237.00 feet;
16) Along said curve, through a central angle of 47°18’32”, an arc length of 195.69 feet;
17) North 55°05’48” East, 3.00 feet;
18) North 34°54’12” West, 340.90 feet to the beginning of a tan gent curve to the right having a radius of 184.00 feet;
19) Along said curve, through a central angle of 29°49’18”, an arc length of 95.77 feet;
20) North 05°04’54” West, 111.85 feet to the beginning of a tan gent curve to the right having a radius of 214.00 feet;
21) Along said curve, through a central angle of 96°34’00”, an arc length of 360.68 feet;
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22) South 88°30’54” East, 151.10 feet to the beginning of a tan gent curve to the right having a radius of 184.00 feet;
23) Along said curve, through a central angle of 60°11’38”, an arc length of 193.31 feet;
24) South 28°19’16” East, 177.39 feet to the beginning of a tan gent curve to the left having a radius of 216.00 feet;
25) Along said curve, through a central angle of 98°10’09”, an arc length of 370.09 feet;
26) North 53°30’36” East, 135.52 feet;
27) South 81°55’00” East, 21.66 feet to the POINT OF BEGINNING.
Containing an area of 20.555 acres, more or less.
The basis of bearings for this description is based upon the California Coordinate System of 1983, CCS83, Zone 3, Epoch 2017.50, in accordance with California Public Resources Code Sections 8801-8819; said coordinates are based locally upon field-observed ties relative to California Spatial Reference Network Station p181. Distances are grid based. Divide by a combined scale factor of 0.99993778 to obtain ground distances.
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Boundaries of Proposed Improvement Area No. 3:
The land referred to herein is situated in the City of Richmond, Contra Costa County, State of California, and is described as follows:
Being all of Disposal Areas 11 and 12, and a portion of Disposa l Areas 1 and 2, as described in that certain Quitclaim Deed, recorded September 30, 2003, as Do cument Number 2003- 0489200 (2003-0489200), Official Records of Contra Costa County , also being all of Disposal Area 3 and a portion of Disposal Area 13, as described in that certain Quitclaim Deed, recorded March 29, 2010, as Document Number 2010-0060367 (2010-0060367), Official Records of Contra Costa County, more particularly described as follows:
COMMENCING at the corner common to Disposal Areas 1, 6, and 7 (2003-0489200), at a found 6-inch concrete monument with brass pin as shown on the R ecord of Survey, filed for record February 12, 1985, in Book 76 of Licensed Land Surveyor’ s Maps at page 29 (76 LSM 29), Contra Coast County Records;
Thence along the easterly line of said Disposal Area 1 (2003-04 89200), North 52°31’27” West, 881.77 feet to a found 6-inch concrete monument with brass pin as shown on said Record of Survey (76 LSM 29);
Thence continuing along said easterly line, North 40°27’17” Wes t, 483.42 feet to the POINT OF BEGINNING;
Thence leaving said easterly line, the following 25 Courses:
1) South 49°32’42” West, 907.33 feet;
2) South 63°39’26” West, 734.51 feet;
3) South 52°02’09” West, 112.90 feet;
4) North 81°55’00” West, 21.66 feet;
5) South 53°30’36” West, 135.52 feet to the beginning of a tang ent curve to the right having a radius of 216.00 feet;
6) Along said curve, through a central angle of 98°10’09”, an a rc length of 370.09 feet;
7) North 28°19’16” West, 177.39 feet to the beginning of a tang ent curve to the left having a radius of 184.00 feet;
8) Along said curve, through a central angle of 60°11’38”, an a rc length of 193.31 feet;
9) North 88°30’54” West, 151.10 feet to the beginning of a tang ent curve to the left having a radius of 214.00 feet;
10) Along said curve, through a central angle of 96°34’00”, an arc length of 360.68 feet;
11) South 05°04’54” East, 111.85 feet to the beginning of a tan gent curve to the left having a radius of 184.00 feet;
12) Along said curve, through a central angle of 29°49’18”, an arc length of 95.77 feet;
13) South 34°54’12” East, 340.90 feet;
14) South 55°05’48” West, 3.00 feet to the beginning of a non-t angent curve to the left having a radius of 237.00 feet from which the center bears North 55°05’48” East;
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15) Along said curve, through a central angle of 47°18’32”, an arc length of 195.69 feet;
16) South 82°12’45” East, 152.36 feet to the beginning of a tan gent curve to the right having a radius of 613.00 feet;
17) Along said curve, through a central angle of 20°33’41”, an arc length of 219.98 feet;
18) South 61°39’04” East, 339.82 feet to the beginning of a tan gent curve to the left having a radius of 687.00 feet;
19) Along said curve, through a central angle of 16°36’18”, an arc length of 199.10 feet;
20) South 78°15’23” East, 202.54 feet to the beginning of a tan gent curve to the left having a radius of 717.00 feet;
21) Along said curve, through a central angle of 25°53’29”, an arc length of 324.00 feet to a point of compound curvature having a radius of 10.00 feet; 22) Along said curve, through a central angle of 30°21’58” an arc length of 5.30 feet; 23) South 50°14’43” East, 9.21 feet to the beginning of a tange nt curve to the right having a radius of 2,378.00 feet;
24) Along said curve, through a central angle of 00”35’41”, an arc length of 24.68 feet;
25) South 40°03’08” West, 221.83 feet to the Mean High-Water Line on the San Francisco Bay, as described in said Documents (2003-0489200) an d (2010- 0060367);
Thence along said Mean High-Water Line, the following meandered courses:
1) North 50°08'38"West, 55.49 feet;
2) North 65°40'23" West, 159.02 feet;
3) South 87°05'08" West, 81.89 feet;
4) North 88°40'35" East, 43.41 feet;
5) North 69°08'13" West, 41.08 feet;
6) North 70°31'40" West, 130.72 feet;
7) North 63°38'53" West, 63.02 feet;
8) North 65°08'48" West, 394.97 feet;
9) North 65°45'40" West, 239.27 feet;
10) North 89°37'59" West, 251.39 feet;
11) South 43°41'43" West, 176.37 feet;
12) South 37°41'46" West, 89.58 feet;
13) South 74°10'57" West, 84.01 feet;
14) North 69°51'46" West, 114.32 feet;
15) South 82°04'52" West, 150.24 feet;
16) North 80°48'14" West, 89.92 feet;
17) North 55°02'10" West, 72.77 feet
18) North 37°14'14" West, 75.87 feet;
19) North 40°46'35" West, 92.69 feet;
20) North 23°46’35” West, 141.02 feet;
21) North 14°13’25” East, 112.55 feet;
22) North 12 54’43” West. 120.25 feet;
23) North 20°19'07" East, 184.59 feet;
24) North 31°36'12" East, 56.23 feet;
25) North 76°07'01" East, 74.51 feet;
26) North 36°37'57" East, 423.76 feet;
ATTACHMENT 3
NG-U9ZQVMF2/4889-7097-7799v6/200952-0001
27) North 48°37'33" East, 202.39 feet;
28) North 28°47'25" East, 184.87 feet;
29) North 37°00'56" East, 110.11 feet;
30) South 78°46'11" East, 44.55 feet;
31) South 09°20'11" East, 73.63 feet;
32) North 42°49'56" East, 247.64 feet;
33) North 41°28'20" East, 125.88 feet;
34) North 28°14'49" East, 152.33 feet;
35) North 11°26' 02" East, 185.60 feet;
36) North 06°29'48" West, 193.39 feet;
37) North 15°39'08" West, 190.81 feet;
38) North 43°11'00" West, 50.36 feet;
39) South 67°31'03" West, 34.66 feet;
40) North 31°52'36" West, 111.69 feet;
41) South 74°18'01" West, 165.85 feet;
42) North 27°56'02" West, 140.61 feet;
43) North 29°31'13" East, 7.90 feet;
Thence leaving said mean high water line, easterly along the no rtherly line of said Disposal Areas 1, 2, and 12 (2003-048200), the following 7 courses:
1) North 71°12’58” East, 37.51 feet to a found 6-inch concrete monument with brass pin as shown on said Record of Survey (76 LSM 29);
2) North 33°13’32” East, 192.59 feet to a found 6-inch concrete monument with brass pin as shown on the said Record of Survey (76 LSM 29); 3) North 71°40’49” East, 104.55 feet;
4) North 46°25’17’ East, 91.49 feet;
5) South 43°32’17” East, 172.14 feet;
6) North 71°22’13” East, 440.41 feet to a found 6-inch concrete monument with brass pin as shown on said Record of Survey (76 LSM 29); 7) North 29°53’00” East, 471.52 feet to the most northerly corn er, monumented by a found 6-inch concrete monument with brass pin as shown on said Record of Survey (76 LSM 29);
Thence South 40°27’17” East, 1,900.32 feet to the POINT OF BEGINNING.
Containing an area of 92.221 acres, more or less.
The basis of bearings for this description is based upon the California Coordinate System of 1983, CCS83, Zone 3, Epoch 2017.50, in accordance with California Public Resources Code Sections 8801-8819; said coordinates are based locally upon field-observed ties relative to California Spatial Reference Network Station p181. Distances are grid based. Divide by a combined scale factor of 0.99993778 to obtain ground distances.
ATTACHMENT 3
18 EXHIBIT B
DESCRIPTION OF THE FACILITIES, SERVICES AND INCIDENTAL EXPENSES
TYPES OF FACILITIES
CFD No. 2022-1, on behalf of itself and each improvement area t hereof, is hereby authorized to finance the costs of the purchase, construction, expansion, improvement, or rehabilitation of facilities permitted under the Mello-Roos Act from the proceeds of special taxes and bonds issued by CFD No. 2022-1, including, without limitation:
CITY FACILITIES
The types of City Facilities that are proposed to be financed by CFD No. 2022-1 with the proceeds of special taxes and bonds issued by CFD No. 2022-1 co nsist of backbone infrastructure needed for new and existing development (both wi thin the project limits as well as offsite improvements), such as roadway, bridge, sewer, dry utilities, storm drain, sea wall, street and parkway landscaping, curb and gutter, medians, median landscaping, traffic signals, entry signage, parks, trails, police facilities, fire facilities, and appurtenances and appurtenant work.
The description of City Facilities is general in nature. The fi nal nature and location of the City Facilities will be determined upon preparation of final plans and specifications. Addition, deletion or modification of descriptions of the City Facilities may be made consistent with the requirements of the City Council of the City, CFD No. 2022-1 and the Act.
EAST BAY MUNICIPAL UTILITIES DISTRICT (“EBMUD”) FACILITIES The proposed EBMUD Facilities include the construction, purchas e, modification, expansion, improvement and/or rehabilitation of public faciliti es to be owned and operated by EBMUD including, without limitation, water system facilities an d acquisition of water system capacity.
The EBMUD Facilities listed herein are representative of the types of facilities authorized to be financed by CFD No. 2022-1. Detailed scope and limits of specific projects will be determined as appropriate, consistent with the standards of the EBMUD. Addition, deletion or modification of descriptions of the EBMUD Facilities may be mad e consistent with the requirements of the governing board of the EBMUD, CFD No. 2022-1 and the Act. The Facilities are necessary for CFD No. 2022-1 (and each improveme nt area thereof) and are generally intended to comply with the requirements of the City.
The description of Facilities is general in nature. The final nature and location of the Facilities will be determined upon preparation of final plans and specifications.
Any Facility authorized to be financed by CFD No. 2022-1 may be financed through the construction and acquisition of the Facility or through the payment of fees for such Facility.
The Facilities constructed or acquired may be located within or outside CFD No. 2022-1.
The Facilities to be financed shall include all hard and soft c osts associated with the Facilities, including the costs of the acquisition of land and rights-of-way, the costs of design, ATTACHMENT 3
19 engineering and planning, the costs of any environmental or traffic studies, surveys or other reports, costs related to landscaping and irrigation, soils testing, permits, plan check, and inspection fees, insurance, legal and related overhead costs, c oordination and supervision and any other costs or appurtenances related to any of the foregoin g as may be further defined in one or more acquisition agreements with the developer of the property in CFD No. 2022-1.
TYPES OF SERVICES
The types of Services that are proposed to be provided by CFD N o. 2022-1 and funded with the proceeds of special taxes levied by CFD No. 2022-1 con sist of services permitted to be financed under the Mello-Roos Community Facilities Act of 1982 including, without limitation, police and fire protection, ambulance and paramedic services, s treet sweeping, traffic signal maintenance and the maintenance of City-owned parks, parkways a nd open spaces, lighting, flood and storm protection services and the operation of storm drainage systems. All of the services to be financed must be in addition to those provided within the boundaries of CFD No. 2022-1 before CFD No. 2022-1 is created, and shall not supplant services already available within that territory when CFD No. 2022-1 is created.
TYPES OF INCIDENTAL EXPENSES
The Incidental Expenses to be paid from bond proceeds and/or special taxes include:
All costs associated with the creation of CFD No. 2022-1, the i ssuance of the Obligations, the determination of the amount of special taxes to be levied, costs incurred in order to carry out the authorized purposes of CFD No. 2022-1, i ncluding legal fees, fees of consultants, engineering, planning, designing and the annual co sts to administer CFD No. 2022-1 and any Obligations.
ATTACHMENT 3
20 EXHIBIT C
RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX FOR
THE CITY OF RICHMOND
COMMUNITY FACILITIES DISTRICT NO. 2022-1
(POINT MOLATE)
IMPROVEMENT AREA NO. 1
ATTACHMENT 3
21 Rate and Method of
Apportionment of Special Tax
City of Richmond
Community Facilities District No. 2022‐1
(Point Molate)
Improvement Area No. 1
A Special Tax A and a Special Ta x B shall be levied on all Taxa ble Property within the boundaries o f I m p r o v e m e n t A r e a N o . 1 o f t h e C i t y o f R i c h m o n d C o m m u n i t y F a cilities District No. 2022‐1 (Point Molate) (“CFD No. 2022‐1 IA 1”) and collected each Fiscal Year commencing in Fiscal Year 2022‐23, in an amount determined by the CFD Administrator through the application of the procedures described below. All the real property within CFD No. 2022‐1 IA 1, unless exempted b y l a w o r b y t h e p r o v i s i o n s h e r e o f , s h a l l b e t a x e d f o r t h e p u r poses, to the extent, and in the manner herein provided.
A. DEFINITIONS
The terms hereinafter set forth have the following meanings:
“Acquisition Agreement” means that Acquisition Agreement relating to CFD No. 2022‐1 (and all improvement areas designated therein) by and between the City and the Developer. “Acre” o r “Acreage” m e a n s t h e l a n d a r e a o f a n A s s e s s o r ’ s P a r c e l a s s h o w n o n a n A s sessor’s Parcel Map, or if the land area is not shown on an Assessor’s P arcel Map, the land area shown on the applicable Final Map. An Acre means 43,560 square feet of land. “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 actual or reasonably estimated costs related to the administration of CFD No. 2022‐1 IA 1 including, but not limite d to: the costs of preparing and computing the Special Taxes (whether by the City or designee thereof or both); the costs of collecting the Special Taxes (whether by the City, the County o r otherwise); the costs of remitting the Special Taxes to the Trustee; the costs of the Tr ustee (including its legal counsel) in the discharge of the duties required of it under the Indentu re; the costs to the City, CFD No. 2022‐1 IA1, or any designee thereof complying with arbitrage rebate requirements, including without limitation rebate liability costs and periodic rebate c alculat ions ; the cos ts to the Cit y, CFD No. 2022‐1 IA 1, or any designee thereof complying with dis closure or reporting requirements of the City or CFD No. 2022‐1 IA 1, associated wit h applicable federal and State laws; the costs associated with preparing Special Tax disclosur e statements and responding to public inquiries regarding the Special Taxes; the costs to the City, CFD No. 2022‐1 IA 1, or any designee thereof related to an appeal of the Special Taxes; and the City’s annual administration ATTACHMENT 3
22 fees and third party expenses. Administrative Expenses shall al so include amounts estimated or advanced by the City or CFD No. 2022‐1 IA 1 for any other admin istrative purposes of CFD No. 2022‐1 IA 1, including attorney’s fees and other costs related to commencing and pursuing any foreclosure of delinquent Special Taxes.
“Approved Property” means all Assessor’s Parcels of Taxable Property exclusive of Provisional P r o p e r t y : ( i ) t h a t a r e i n c l u d e d i n a F i n a l M a p t h a t w a s r e c o r d ed prior to the January 1st preceding the Fiscal Year in which the Special Taxes are being levied, and (ii) that have not been i s s u e d a B u i l d i n g P e r m i t o n o r p r i o r t o t h e M a y 1 s t p r e c e d i n g the Fiscal Year in which the Special Taxes are being levied.
“Assessor” means the Assessor of the County of Contra Costa. “Assessor’s Parcel” m e a n s a l o t , u n i t , o r p a r c e l s h o w n o n a n A s s e s s o r ’ s P a r c e l M a p w i t h a n assigned Assessor’s Parcel Number.
“Assessor’s Parcel Map” means an official map of the Assessor designating parcels by Assessor’s Parcel Number.
“Assessor’s Parcel Number” means the number assigned to an Assessor’s Parcel by the Count y for purposes of identification.
“Assigned Special Tax A” means the Special Tax of that name described in Section C.1 below. “Authorized Facilities ” means those facilities and capital fees that are authorized t o be financed by CFD No. 2022‐1 IA 1.
“Backup Special Tax A” means the Special Tax of that name described in Section C.2 below. “Base Year” means the Fiscal Year beginning July 1, 2022 and ending June 30, 2023. “Bonds” means any bonds or other Debt of CFD No. 2022‐1 IA 1, whether in one or more series, secured by the levy of Special Taxes.
“Boundary Map” means the map of the boundaries of CFD No. 2022‐1 IA 1 recorded in the Contra Costa County Recorder’s Office.
“Building Permit” m e a n s a b u i l d i n g p e r m i t f o r c o n s t r u c t i o n o f a R e s i d e n t i a l U n i t o r N o n ‐ Residential Property within CFD No. 2022‐1 IA 1 issued by the City. “Building Square Footage” means all of the square footage of usable area within the peri meter of a residential structure, not including any carport, walkway, garage, overhang, or similar area.
The determination of Building Square Footage shall be made by r eference to the Building Permit(s) issued for such structure and/or by reference to appropriate records kept by the City. “Calendar Year” means the period commencing January 1st of any year and ending t h e following December 31.
“CFD Administrator” means an authorized representative of the City, or designee th ereof, responsible for determining the Special Tax Requirement for Fac ilities and the Special Tax R e q u i r e m e n t f o r S e r v i c e s , f o r p r e p a r i n g t h e S p e c i a l T a x r o l l a nd/or calculating the Backup Special Tax A.
ATTACHMENT 3
23 “CFD No. 2022‐1” means the City of Richmond Community Facilities District No. 2 022‐1 (Point Molate).
“CFD No. 2022‐1 IA 1” means Improvement Area No. 1 of the City of Richmond Community Facilities District No. 2022‐1 (Point Molate).
“City” means the City of Richmond, California.
“Consumer Price Index” means the Consumer Price Index for All Urban Consumers publish ed b y t h e U . S . B u r e a u o f L a b o r S t a t i s t i c s f o r t h e S a n F r a n c i s c o ‐ O akland‐Hayward, CA area in the December preceding the Fiscal Year. In the event this index cea ses to be published, the Consumer Price Index shall be another index as determined by the CFD Administrator that is reasonably comparable to the original index.
“Council” means the City Council of the City acting as the legislative b ody of CFD No. 2022‐1 IA 1 under the Act.
“County” means the County of Contra Costa, California.
“Debt” means any binding obligation to pay or repay a sum of money, including obligations in the form of bonds, certificates of participation, long‐term lea s e s , l o a n s f r o m g o v e r n m e n t agencies, or loans from banks, other financial institutions, pr ivate businesses, or individuals, or long‐term contracts.
“Debt Service” means for each Fiscal Year, the total amount of principal and interest payable on any Outstanding Bonds during the Calendar Year commencing on January 1st of such Fiscal Year.
“Developed Property” means for each Fiscal Year, all Taxable Property, exclusive of Provisional Property, for which a Building Permit was issued prior to May 1 st of the previous Fiscal Year. An Assessor’s Parcel classified as Developed Property but for which the Building Permit that caused such Assessor’s Parcel to be cla ssified as Developed Property h as been cancelled and/or voided prior to the Fiscal Year for which Special Taxes are being levi ed shall be reclassified as Approved Property, provided that the levy of the Special Taxes on such A ssessor’s Parcel after such reclassification does not cause the total Special Tax A authori zed to be collected within CFD No. 2022‐1 IA 1 to be less than 1.1 t imes the annual Debt Service plus Administrative Expenses, on all Outstanding Bonds for any future Fiscal Year. If Bonds have not been issued, an Assessor’s P a r c e l c l a s s i f i e d a s D e v e l o p e d P r o p e r t y f o r w h i c h s u c h a B u i l d ing Permit has been cancelled and/or voided shall be reclassified as Approved Property. “Developer” means Winehaven Legacy LLC and its successors, if any, acting as the developer of the property in CFD No. 2022‐1 IA 1.
“Exempt Property” means for each Fiscal Year, all Assessor’s Parcels designated as being exempt from Special Taxes pursuant to Section I below.
“Final Map” means a subdivision of property by recordation of a final map, parcel map, or lot line adjustment, pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) or recordation of a condominium plan pursuant to California Civil Code 4285 that ATTACHMENT 3
24 creates individual lots or units for which Building Permits may b e i s s u e d w i t h o u t f u r t h e r subdivision.
“Fiscal Deficit” means, for any Fiscal Year, the amount determined by the City’s designated consultant to be the actual negative fiscal impact to the City’s general fund that the project associated with CFD No. 2022‐1 when applying the methodology de tailed in the Peer Review of Winehaven Prepared Fiscal Impact Analysis for Proposed Point Molate Mixed‐Use Development Project prepared by Bay Area Economics in June 2020 for the City and using the actual sales data as of August 1 of such Fiscal Year. If the actual sales data for Assessor’s Parcels within CFD No. 2022‐1 IA 1 is not available at the time the report is prep ared, assessed values on the latest secured roll prepared by the County will be used.
“Fiscal Year” means the period starting on July 1 and ending the following June 30. “For‐Rent Affordable Residential Property” means Residential Property consisting of Residential Units that are available for rental by moderate‐, low‐, very low‐ or extremely low‐ income persons, not for sale to an end user, under common manag ement, and subject to deed restrictions, resale restrictions, and/or regulatory agreements r e c o r d e d i n f a v o r o f t h e C i t y providing for affordable housing.
“For‐Rent Low‐Rise Apartment/Townhome Property” means Residential Property consisting of a building or buildings of 2 to 3 stories which consist of eith er stacked multi‐family buildings or a d j o i n e d m u l t i ‐ s t o r y h o u s e s t h a t a r e s i m i l a r t o e a c h o t h e r a v a ilable for rental by the general public, not for sale to an end user, and under common management. “For‐Rent Mid‐Rise Apartment Property” means Residential Property that consists of a multi‐ family building or buildings on a single or conjoined multiple parcels where there are typically 3 to 7 stories of housing available for rental by the general public, not for sale to an end user, and under common management.
“Indenture” means the indenture, fiscal agen t agreement, resolution or oth er instrument pursuant to which Bonds are issued, as modified, amended and/or supplemented from time to time, and any instrument replacing or supplementing the same. “Land Use Class” means any of the classes listed in Table 1 under Section C below. “Lot” m e a n s a n A s s e s s o r ’ s P a r c e l c r e a t e d b y a F i n a l M a p o n w h i c h o n e or more Residential Units can be constructed.
“Low‐Rise Apartment/Townhome Property” means Residential Property consisting of a building or buildings of 2 to 3 stories which consist of either stacked multi‐family buildings or adjoined multi‐story houses that are similar to each other and offered for sale to the public. “Maximum Special Tax A” means for each Assessor’s Parcel, the Maximum Special Tax A, determined in accordance with Sections C.3 and C.4 below, which m a y b e l e v i e d i n a g i v e n Fiscal Year on such Assessor’s Parcel of Taxable Property. “Maximum Special Tax B” means for each Assessor’s Parcel, the maximum Special Tax B, determined in accordance with Section C.1 and C.4 below, which may be levied in a given Fiscal Year on such Assessor’s Parcel of Taxable Property.
ATTACHMENT 3
25 “Mid‐Rise Condominium Property” m e a n s R e s i d e n t i a l P r o p e r t y t h a t c o n s i s t s o f a b u i l d i n g o r complex of buildings containing a number of individually owned apartments in buildings 3 to 7 s t o r i e s t h a t a r e f o r ‐ s a l e b u t s h a r e c o m m o n s p a c e s , a m e n i t i e s , parking areas, utility and maintenance areas, and the property’s grounds.
“Mixed‐Use Non‐Residential Property” means Non‐Residential Property that resides within a shared building or complex of buildings which provide more than o n e u s e o r p u r p o s e o n t h e same lot and may include any combination of office, retail, institutional, recreational, other commercial or industrial uses.
“Neighborhood Retail Property” means Non‐Residential Property not classified as Mixed‐Use Non‐Residential Property.
“Non‐Residential Property” means all Assessor’s Parcels for which a building permit has been issued prior to May 1st of the previous Fiscal Year for the pur pose of constructing one or more non‐residential units or facilities.
“Outstanding Bonds” means all Bonds, which are deemed to be outstanding under the Indenture.
“Prepayment Amount” means the amount required to prepay the Special Tax A Obligation in full for an Assessor’s Parcel as described in Section 6.A below. “Property Owner Association Property” means any Assessor’s Parcel within the boundaries of CFD No. 2022‐1 IA 1 owned in fee by a property owner association, including any master or sub‐ association.
“Proportionately” o r “Proportionate” means for Developed Property and Special Tax A, that the ratio of the actual Special Tax A levy to the applicable Assigned Special Tax A, Maximum Special Tax A is equal for all Assessor’s Parcels of Developed Property. For Developed Property and Special Tax B, that the ratio of the actual Special Tax B levy to the Maximum Special Tax B is equal for all Assessor’s Parcels of Developed Property. For Approved Property, Undeveloped Property, or Provisional Property and Special Tax A, “Proportio nately” means that the ratio of the actual S pecial T ax A lev y per Ac re to the Maximum Spe cial Ta x A per Acr e is equal for all Assessor’s Parcels of Approved Property, Undeveloped Property or Provisional Property. For Approved Property, Undeveloped Pr operty, or Provisional Propert y and Special Tax B, “Proportionately” means that the ratio of the actual Special Ta x B levy per Acre to the Maximum Special Tax B per Acre is equal for all Assessor’s Parcels of Approved Property, Undeveloped Property, or Provisional Property. “Proportionately” may similarly be applied to other categories of Taxable Property as listed in Section C below. “Provisional Property” m e a n s a l l A s s e s s o r ’ s P a r c e l s o f P u b l i c P r o p e r t y , P r o p e r t y O w n er Association Property, Non‐Reside ntial Property or property that would otherwise be classified as Exempt Property pursuant to the provisions of Section I but cannot be classified as Exempt Property because to do so would reduce the Acreage of all Taxable Property below the required minimum Acreage as set forth in Section I.
“Public Property” means any property within the boundaries of CFD No. 2022‐1 IA 1, which is owned by, or irrevocably offered for dedication to the federal government, the State of ATTACHMENT 3
26 California, the County, the City or any other public agency; pr ovided however that any property owned by a public agency and leased 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. “Rate and Method of Apportionment” means this Rate and Method of Apportionment of Special Tax applicable to the property shown on the Boundary Map of CFD No. 2022‐1 IA 1. “Remainder Taxes” means the amount of the annual Special Tax A levy that is not needed to pay for items (i), (ii), (iii), (iv), and (vi) of the definition of the Special Tax Requirement for Facilities.
”Remainder Taxes Priority” means that the Remainder Taxes shall be applied as follows an d in the following order of priority: (i) to the reimbursement of, o r payment to, the Developer for Authorized Facilities in a cumulative amount of $15,000,000, as set forth in the Acquisition Agreement; and (ii) to the financing of Authorized Facilities not included in subsection (i). “Residential Property” means all Assessor’s Parcels of Developed Property for which a Building Permit has been issued for the purpose of constructing one or more Residential Units. “Residential Unit” means each separate residential dwelling unit that comprises a n independent facility capable of conveyance or rental, separate from adjacent residential dwelling units.
“Single Family Residential Property” means Residential Property not classified as For‐Rent Affordable Property, For‐Rent Lo w‐Rise Apartment/Townhome Prope rty, For‐Rent Mid‐Rise Apartment Property, Low‐Rise Apartment/Townhome Property or Mid ‐Rise Condominium Property.
“Special Tax” o r “Special Taxes” means any special tax levied within CFD No. 2022‐1 IA 1 pursuant to the Act and this Rate and Method of Apportionment. “Special Tax A” means the special tax to be levied each Fiscal Year on each As sessor’s Parcel of Taxable Property within CFD No. 2022‐1 IA 1 to fund the Special Tax Requirement for Facilities. “ S p e c i a l T a x A O b l i g a t i o n ” m e a n s t h e t o t a l o b l i g a t i o n o f a n A s s e s s o r ’ s P a r c e l o f T a x a b l e Property to pay the Special Tax for the remaining life of CFD No. 2022‐1 IA 1. “Special Tax B” means the special tax to be levied each Fiscal Year on each As sessor’s Parcel of Taxable Property within CFD No. 2022‐1 IA 1 to fund the Special Tax Requirement for Services. “Special Tax Requirement for Facilities” means that amount required in any Fiscal Year to: (i) pay regularly scheduled Debt Service on all Outstanding Bonds; ( i i ) p a y p e r i o d i c c o s t s o n t h e Outstanding Bonds, including but not limited to, credit enhancement and rebate payments on the Outstanding Bonds; (iii) pay a proportionate share of Administrative Expenses; (iv) pay any amounts required to establish or replenish any reserve funds fo r all Outstanding Bonds provided that such amounts have not been included in a prior Fi scal Year’s levy; (v) accumulate funds to pay directly for acquisi tion or construction of Author ized Facilities, provided that the inclusion of such amount does not cause an increase in the Special Tax A to be levied on Approved Property, Undeveloped Pr operty, or Provisional Propert y; and (vi) pay for reasonably anticipated Special Tax A deli nquencies based on the delinquenc y rate for Special Taxes levied ATTACHMENT 3
27 in the previous Fiscal Year on property in CFD No. 2022‐1 IA 1; less (vii) a credit for funds available to reduce the Special Tax A levy, as determined by th e CFD Administrator pursuant to the Indenture.
“Sp eci al Ta x Req u i rem en t f or Serv i ces” means that amount required in any Fiscal Year to: (i) pay directly for services in the Calendar Year commencing in su ch Fiscal Year provided that the amount does not result in a Spec ial Tax B levy on Approved Prop erty and Undeveloped Property that exceeds the Fiscal Deficit for such Fiscal Year; ( i i ) p a y a p r o p o r t i o n a t e s h a r e o f Administrative Expenses; (iii) pay for reasonably anticipated S pecial Tax B delinquencies based on the delinquency rate for Special Tax B levied in the previou s Fiscal Year on property in CFD No. 2022‐1 IA 1; less (iv) a credit for funds available to redu c e t h e S p e c i a l T a x B l e v y , a s determined by the CFD Administrator.
“State” means the State of California.
“Taxable Property” means all of the Assessor’s Parcels within the boundaries of CFD No. 2022‐1 IA 1, which are not exempt from the levy of the Special Taxes pursuant to law or Section I below.
“Trustee” means the trustee or fiscal agent under the Indenture. “Undeveloped Property” means, for each Fiscal Year, all Taxable Property not classified as Developed Property, Approved Property or Provisional Property.
B. LAND USE CLASSIFICATION
Each Fiscal Year, beginning with Fiscal Year 2022‐23, each Assessor’s Parcel within CFD No. 2022‐1 IA 1 shall be classified as Taxable Property or Exempt P roperty. In addition, all Taxable Property shall further be classified as Developed Property, Approved Property, Undeveloped Property or Provisional Property, and all such Taxable Property shall be subject to the levy of Special Taxes in accordance with this Rate and Method of Apport ionment determined pursuant to Sections C and D below. Furth ermore, each Assessor’s Parcel of Developed Property shall be assigned to a Land Use Class and land use type based on its Bui lding Square Footage, as applicable.
ATTACHMENT 3
28 C. SPECIAL TAX RATES
1. Assigned Special Tax A and Ma ximum Special Tax B for Develop ed Property The As s ig ned Specia l T a x A and Ma ximum Sp ec ial Ta x B ap plicable to an Assessor’s Parcel classified as Developed Property for the Base Year shall be det ermined pursuant to Table 1 below.
Table 1
Base Year Assigned Special Tax A and Maximum Special Tax B (Fiscal Year 2022‐23)
Land
Use
Class
Land Use Type Assigned
Special Tax A
Maximum
Special Tax B
1 Single Family Residential
Property
$8,841 per
Residential Unit
$1,100 per
Residential Unit
2 Low-Rise
Apartment/Townhome
Property
$6,364 per
Residential Unit
$770 per
Residential Unit
3 Mid-Rise Condominium
Property
$6,771 per
Residential Unit
$660 per
Residential Unit
4 For-Rent Low-Rise
Apartment/Townhome
Property
$1,048 per
Residential Unit
$550 per
Residential Unit
5 For-Rent Mid-Rise
Apartment Property
$1,497 per
Residential Unit
$440 per
Residential Unit
6 For-Rent Affordable
Residential Property
$1,248 per
Residential Unit
$330 per
Residential Unit
7 Mixed-Use Non-Residential
Property
$1.00 per Square
Foot
$1.00 per Square
Foot
8 Neighborhood Retail
Property
$1.00 per Square
Foot
$0.63 per Square
Foot
For each subsequent Fiscal Year following the Base Year, the As signed Special Tax A in Table 1 above shall be increased by two percent (2%) of the amount in effect the prior Fiscal Year, and the Maximum Special Tax B in Table 1 above shall be increas ed by the percent change in the Consumer Price Index since the prior Fiscal Year but not less than two percent (2%) or greater than six percent (6%).
ATTACHMENT 3
29 2. Backup Special Tax A for Developed Property
Each Fiscal Year, each Assessor's Parcel of Developed Property shall be subject to a Backup Special Tax A. The Backup Special Tax A for High‐Density Reside ntial Property shall be equal t o t h e A s s i g n e d S p e c i a l T a x A . T h e B a c k u p S p e c i a l T a x A f o r a n Assessor's Parcel of Developed Property, not classifi ed as High‐Density Residential Property, within a Final Map shall be the rate per Lot calcul ated in accordance with the fol lowing formula in Fiscal Year 2022‐23 or such later Fiscal Year in which such Final Map is cr eated, subject to increases as described below.
(a) Calculation of the Backup Special Tax A
𝐁ൌ 𝐔 ൈ 𝐀
𝐋
The terms above have the following meanings:
B ൌ Backup Special Tax A per Lot for the applicable Final Map U ൌ Assigned Special Tax A per Acre of Approved Property or U ndeveloped Property for the Fiscal Year the calculation is performed
A ൌ Acreage of Taxable Propert y expected to exist within such Final Map at the time of calculation, as determined by the CFD Administrator
L ൌ Number of Lots within the applicable Final Map at the tim e of calculation
Notwithstanding the foregoing, the Backup Special Tax A for a parcel of Developed Property for which a Certificate of Occupancy has been provided may not be changed. (b) Changes to a Final Map
If the Final Map(s) described in the preceding paragraph are subsequently changed or modified, then the Backup Special Tax A for each Assessor’s Par cel of Developed Property changed or modified in each such Final Map shall be a rate per square foot of Acreage calculated as follows:
(i) Determine the total Backup Special Tax A revenue anticipated to apply to the changed or modified Assessor's Parcels prior to the change or modification. (ii) The result of paragraph (a) above shall be divided by the Acreage of Taxable Property of the modified Assessor's Parcels, as reasonably determined by the Administrator.
(iii) The result of paragraph b above shall be divided by 43,560. The r e s u l t i s t h e Backup Special Tax A per square foot of Acreage that shall be a pplicable to the modified Assessor's Parcels, subject to increases as described below. (c) Increase in the Backup Special Tax A
Each July 1, commencing the July 1 following the initial calcul ation of the Backup Special Tax A for Developed Property within a Final Map, the Backup Spe cial Tax A for each Lot within such Final Map shall be increased by two percent (2%) of the amount in effect the prior Fiscal Year.
ATTACHMENT 3
30 3. Maximum Special Tax A for Developed Property
The Maximum Special Tax A for Developed Property shall be the greater of the Assigned Special Tax A for Developed Property or the Backup Special Tax A for Developed Property.
4 . M a x i m u m S p e c i a l T a x A a n d M a x imum Special Tax B for Provisio nal Property, Approved Property and Undeveloped Property
The Base Year Maximum Special Tax A for Provisional Property, A pproved Property and Undeveloped Property shall be $147,073 per Acre.
The Base Year Maximum Special Tax B for Approved Property and U ndeveloped Property shall be $121,815 per Acre. In the first Fiscal Year in which the Fiscal Deficit has been determined to be less than or equal to zero, the Base Year Maximum Special Tax B for Approved Property and Undeveloped Property shall be $0 per Acre in that Fiscal Year and each Fiscal Year thereafter.
For each subsequent Fiscal Year following the Base Year, the Maximum Special Tax A rate for Provisional Property, Approved Property and Undeveloped Property shall be i n c r e a s e d b y t w o p e r c e n t ( 2 % ) o f t h e a m o u n t i n e f f e c t t h e p r i o r Fiscal Year, and the Maximum Special Tax B for Provisional Property, Approved Proper ty and Undeveloped Property shall be increased by the percent change in the Consum er Price Index since the prior Fiscal Year but not less than two percent (2%) or greater than six percent (6%).
D. METHOD OF APPORTIONMENT
1. Special Tax A
For each Fiscal Year, commencing Fiscal Year 2022‐23, the CFD Administrator shall levy the Special Tax A on all Taxable Property in accordance with the following steps:
Step 1: (a) Through Fiscal Year 2071‐72, the Special Tax A shall be l evied at the applicable Assigned Special Tax A on each Assessor’s Parcel of Developed Property. Any Remainder Taxes shall be applied as set forth in the Remainder Taxes Priority. (b) After Fiscal Year 2071‐72, the Special Tax A shall be levie d Proportionately on each Assessor’s Parcel of Developed Property up to 100% of the applicable Assigned Special Tax A until the Special Tax Require ment for Facilities is met.
Step 2: If additional monies are needed to satisfy the Special Tax Requirement for Facilities after Step 1 has been completed, the Special Tax A s hall be levied Proportionately on each Assessor’s Parcel of Approved Property in an amount up to 100% of the Maximum Special Tax A for Approved Property.
Step 3: If additional monies are needed to satisfy the Special Tax Requirement for Facilities after the first two steps have been completed, the Special Tax A shall be levied ATTACHMENT 3
31 Proportionately on each Assessor’s Parcel of Undeveloped Proper ty in an amount up to 100% of the Maximum Special Tax A for Undeveloped Property.
Step 4: If additional monies are needed to satisfy the Special Tax Requirement for Facilities after the first three steps have been completed, the n the Special Tax A amount determined in Step 1 shall be increased Proportionately on each Assessor’s Parcel of Developed Property up to 100% of the Maximum Special Tax A for Developed Property.
Step 5: If additional monies are needed to satisfy the Special Tax Requirement for Facilities after the first four steps have been completed, then the Special Tax A shall be levied Proportionately on each Assessor’s Parcel of Provisional Property in an amount up to 100% of the Maximum Special Tax A for Provisional Property.
In the event Building Permits have been issued prior to May 1st of the previous Fiscal Year for one or more Residential Units on a single Assessor’s Parcel, causing such Assessor’s Parcels to be classified as Developed Property, and the County has not yet assigned final Assessor’s Parcel Number(s) to such Residential Unit(s) in accordance with the Final Map applicable to such Assessor’s Parcel, the amount of the Special Tax A levy on such Assessor’s Parcel shall be determined as follows: (1) the CFD Administrator shall first determine an amount of the Maximum Special Tax A for such Assessor’s Parcel, based on the classification of such Assessor’s Parcel as Appr oved Property or Undeveloped P r o p e r t y ; ( 2 ) t h e C F D Administrator shall then determine the amount of the Special Ta x A levy for the Residential Units on such Assessor’s Parcel for which Building Permits have b e e n i s s u e d s h a l l b e determined based on the Developed Property Assigned Special Tax A r a t e s , a n d s u c h amount shall be levied as Developed Property in accordance with Step 1 above; and (3) the amount of the Special Tax A on the Taxable Property in such Assessor’s Parcel not subject to the Special Tax A levy in clause (2) shall be equal to: (A) the p e r c e n t a g e o f t h e M a x i m u m Special Tax A rate levied on all other Approved Property or Und eveloped Property pursuant to Step 2 or 3 above, as applicable, multiplied by the total of the amount determined in clause (1), less (B) the amount determined in clause (2) of this paragraph.
Notwithstanding the above, under no circumstances will the Special Tax A levied in any Fiscal Year against any Assessor’s Parcel of Residential Property for which an occupancy permit for private residential use has been issued be increased as a result of a delinquency or default in the payment of the Special Tax A applicable to any other Assessor’s Parcel within CFD No. 2022‐1 IA1 by more than ten percent (10%) above what would have been levied in the absence of such delinquencies or defaults.
2. Special Tax B
For each Fiscal Year, commencing Fiscal Year 2022‐23, the CFD Administrator shall levy the Special Tax A on all Taxable Property in accordance with the following steps:
Step 1: The Special Tax B shall be levied Proportionately on each Assessor’s Parcel of Developed Property up to 100% of the applicable Maximum Special Tax B.
Step 2: If additional monies are needed to satisfy the Special Tax Requirement for Services after Step 1 has been completed, the Special Tax B sha ll be levied ATTACHMENT 3
32 Proportionately on each Assessor’s Parcel of Approved Property in an amount up to 100% of the Maximum Special Tax B for Approved Property.
Step 3: If additional monies are needed to satisfy the Special Tax Requirement for Services after the first two steps have been completed, the Spe cial Tax B shall be levied Proportionately on each Assessor’s Parcel of Undeveloped Proper ty in an amount up to 100% of the Maximum Special Tax B for Undeveloped Property.
In the event Building Permits have been issued prior to May 1st of the previous Fiscal Year for one or more Residential Units on a single Assessor’s Parcel, causing such Assessor’s Parcels to be classified as Developed Property, and the County has not yet assigned final Assessor’s Parcel Number(s) to such Residential Unit(s) in accordance with the Final Map applicable to such Assessor’s Parcel, the amount of the Special Tax B levy on such Assessor’s Parcel shall be determined as follows: (1) the CFD Administrator shall first determine an amount of the Maximum Special Tax B for such Assessor’s Parcel, based on the classification of such Assessor’s Parcel as Appr oved Property or Undeveloped P r o p e r t y ; ( 2 ) t h e C F D Administrator shall then determine the amount of the Special Ta x B levy for the Residential Units on such Assessor’s Parcel for which Building Permits have b e e n i s s u e d s h a l l b e determined based on the Develope d P r o p e r t y A s s i g n e d S p e c i a l T a x B r a t e s , a n d s u c h amount shall be levied as Developed Property in accordance with Step 1 above; and (3) the amount of the Special Tax B on the Taxable Property in such Ass essor’s Parcel not subject to the Special Tax B levy in clause (2) shall be equal to: (A) the p e r c e n t a g e o f t h e M a x i m u m Special Tax B rate levied on all other Approved Property or Und eveloped Property pursuant to Step 2 or 3 above, as applicable, multiplied by the total of the amount determined in clause (1), less (B) the amount determined in clause (2) of this paragraph.
E. COLLECTION OF SPECIAL TAXES
Collection of the Special Taxes shall be made by the County in the same manner as ordinary ad v a l o r e m p r o p e r t y t a x e s a r e c o l l e c t e d a n d t h e S p e c i a l T a x e s s h a ll be subject to the same penalties and the same lien priority in the case of delinquency as ad valorem taxes; provided, however, that the Council may provide for (i) other means of collecting the Special Taxes, including direct billings thereof to the property owners; and ( i i ) j u d i c i a l f o r e c l o s u r e o f delinquent Special Taxes.
F. PREPAYMENT OF SPECIAL TAX A OBLIGATION
The following definition applies to this Section F:
“CFD Public Facilities Costs” means $31 million or such lower number as (i) shall be determi ned by the CFD Administrator as sufficient to acquire or construct the Authorized Facilities to be financed under the Act and financing program for CFD No. 2022‐1 I A 1 , o r ( i i ) s h a l l b e determined by the Council concurrently with a covenant that it will not issue any more Bonds (except refunding bonds) in CFD No. 2022‐1 IA 1.
ATTACHMENT 3
33 “Construction Fund” means the fund (regardless of its name) established pursuant t o the Indenture to hold funds, which a re currently available for expe nditure to acquire or construct the Authorized Facilities.
“Future Facilities Costs” m e a n s t h e C F D P u b l i c F a c i l i t i e s C o s t s m i n u s ( i ) c o s t s p r e v i o u sly paid from the Construction Fund or from Special Tax A to acquire or construct the facilities, (ii) monies currently on deposit in the Construction Fund or other fund holding Special Tax A that is available to finance the CFD Public Facilities Costs, and (iii) monies currently on deposit in an escrow or other designated fund of CFD No. 2022‐1 IA 1 that are expected to be available to finance CFD Public Facilities Costs. The amount of Future Facil ities Costs may not be less than $0.
“Outstanding Bonds” means all Previously Issued Bonds, which remain outstanding as o f t h e first interest and/or principal payment date following the current Fiscal Year excluding Bonds to be redeemed at a later date with proceeds of prior Special Tax A prepayments. “Previously Issued Bonds” m e a n s a l l B o n d s t h a t h a v e b e e n i s s u e d p r i o r t o t h e d a t e o f prepayment.
1. Prepayment in Full
Property owners may prepay and permanently satisfy the Special Tax A Obligation by a cash settlement with the City as permitted under Government Code Sec tion 53344. The Special Tax B obligation may not be prepaid.
The Special Tax A Obligation applicable to an Assessor’s Parcel of Developed Property, Approved Property, or Undeveloped Property that has been includ ed in a Final Map may be prepaid and the obligation to pay the Special Tax A for such As sessor’s Parcel permanently satisfied as described herein, provided that a prepayment may b e made with respect to a particular Assessor’s Parcel only if there are no delinquent Special Taxes with respect to such Assessor’s Parcel at the time of prepayment. An owner of a n Assessor’s Parcel eligible to prepay the Special Tax A Obligation shall provide the CFD Administrator with written notice of intent to prepay and designate or identify the company or agency that will be acting as the escrow agent, if any. The CFD Administrator shall p r o v i d e t h e o w n e r w i t h a statement of the Prepayment Amount for such Assessor’s Parcel within thirty (30) days of the request and may charge a reasonable fee for providing this service. Prepayment must b e m a d e a t l e a s t 6 0 d a y s p r i o r t o a n y r e d e m p t i o n d a t e f o r O u t s tanding Bonds to be redeemed with the proceeds of such prepaid Special Taxes, unles s a shorter period is acceptable to the Trustee and the City.
ATTACHMENT 3
34 The Prepayment Amount shall be calculated for each applicable A ssessor’s Parcel or group of Assessor’s Parcels as follows (capitalized terms are defined below):
Bond Redemption Amount
plus Redemption Premium
plus Future Facilities Amount
plus Defeasance Amount
plus Administrative Fees and Expenses
less Reserve Fund Credit
less Capitalized Interest Credit
Equals: Prepayment Amount
The Prepayment Amount shall be determined as of the proposed pr epayment date as follows:
1. Confirm that no Special Tax delinquencies apply to such Assessor’s Parcel.
2. For Assessor’s Parcel of Develo ped Property, compute the Maximum Special Tax A for the Assessor’s Parcel as though all Assessor’s Parcels of Taxable Property within CFD No. 2022‐1 IA 1 have been built out. For an Assessor’s Parcel of A pproved Property or Undeveloped Property for which a Building Permit has been issued, compute the Maximum Special Tax A for the Assessor’s Parcel as though it was already designated as Developed Property, based upon the Building Permit which has been issued for the Assessor’s Parcel.
For an Assessor’s Parcel of Approved Property or Undeveloped Pr o p e r t y f o r w h i c h a Building Permit has not been issued, compute the Maximum Special Tax A for the Assessor’s Parcel.
3 . D i v i d e t h e M a x i m u m S p e c i a l T a x A d e r i v e d p u r s u a n t t o p a r a g raph 2 by the estimated total amount of Special Tax A that could be levied at build out of all Assessor’s Parcels of T a x a b l e P r o p e r t y b a s e d o n t h e a p p l i c a b l e M a x i m u m S p e c i a l T a x A for all such Assessor’s Parcels of Taxable Property not including any Parcels for which the Special Tax A Obligation has been previously prepaid.
4. Multiply the quotient derived pursuant to paragraph 3 by the principal amount of the Outstanding Bonds to determine the amount of Outstanding Bonds to be redeemed with the Prepayment Amount (the “Bond Redemption Amount”).
5. Multiply the Bond Redemption Amount by the applicable redemption premium, if any, on the Outstanding Bonds to be redeemed (the “Redemption Premium”).
6. Determine the Future Facilities Costs.
7. Multiply the quotient derive d pursuant to paragraph 3 by th e amount determined pursuant to paragraph 6 to determine the portion of the Future Facilities Costs applicable to the Assessor’s Parcel (the “Future Facilities Amount”).
8. Determine the amount needed to pay interest on the Bond Red emption Amount from the first bond interest and/or principal payment date following the current Fiscal Year until the earliest redemption date for the Outstanding Bonds on which Bonds can be redeemed from Special Tax A prepayments.
ATTACHMENT 3
35 9. Determine the Special Tax A amount levied on the Assessor’s Parcel in the current Fiscal Year which have not yet been paid.
10. Determine the amount the CFD Administrator reasonably expect s t o d e r i v e f r o m t h e investment of the Bond Redemption Amount and the Redemption Premium from the date of prepayment until the redemption date for the Outstanding Bon ds 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 associated wit h the prepayment, including 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 t h e S p e c i a l T a x A Obligation for the Assessor’s Parcel and the redemption of Outs tanding 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 th e Indenture), if any, associated with the redemption of Outstanding Bonds as a result of the prepayment, or (b) the amount derived by subtracting the new reserve requirement (as defined in the Indenture) in effect after the redemption of Outstanding Bonds a s a r e s u l t o f t h e prepayment from the balance in the reserve fund on the prepayme nt 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 t i m e o f t h e f i r s t i n t e r e s t a n d / o r p r i n c i p a l p a y m e n t f o l l o w i n g the current Fiscal Year, a capitalized interest credit shall be calculated by multiplying the quotient computed pursuant to paragraph 3 by the expected balance in the capitali zed interest fund after such first interest and/or principal payment (the “Capitalized Interest Credit”).
15. The amount to prepay the Special Tax A Obligation is equal t o t h e s u m o f t h e B o n d Redemption Amount, the Redemption Premium, the Future Facilitie s Amount, the Defeasance Amount and the Administrative Fees and Expenses, les s the Reserve Fund Credit and the Capitalized Interest Credit.
16. From the Prepayment Amount, the Bond Redemption Amount, the Redemption Premium, and Defeasance Amount shall be deposited into the appr opriate fund as established under the Indenture and be used to redeem Outstandi ng 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. 2022‐1 IA 1.
The Prepayment Amount may be sufficient to redeem an amount other than a $5,000 increment of Outstanding Bonds. In such cases, the increment above $5,000 or integral multiple thereof will be retained in the appropriate fund estab lished under the Indenture to redeem Outstanding Bonds to be used with the next prepayment of Outstanding Bonds.
The CFD Administrator will confirm that all previously levied Special Taxes have been paid in full. With respect to any Assessor’s Parcel for which the Speci al Tax A Obligation is prepaid ATTACHMENT 3
36 in full, once the CFD Administrator has confirmed that all previously levied Special Taxes have been paid, the Council shall cause a suitable notice to be recorded in compliance with the Act, to indicate the prepayment of the Special Tax A and th e release of the Special Tax A lien on such Assessor’s Parcel, and the obligation of the owner of such Assessor’s Parcel to pay the Special Tax A shall cease.
Notwithstanding the foregoing, no Special Tax A prepayment shall be allowed unless the aggregate amount of Maximum Special Tax A less Administrative Expenses that may be levied on Taxable Property, respectively, after the proposed pre p a y m e n t i s a t l e a s t 1 . 1 times the Debt Service on all Outstanding Bonds in each Fiscal Year.
2. Partial Prepayment
The Special Tax on an Assessor’s Parcel of Developed Property, Approved Property, or Undeveloped Property may be partially prepaid. The amount of the prepayment shall be calculated as in SectionF.1; except that a “Partial Prepayment Amount” shall be calculated according to the following formula:
𝐏𝐏 ൌሺ𝐏𝐄 െ 𝐀ሻ ൈ𝐅𝐀
The terms above have the following meanings:
PP ൌ The Partial Prepayment Amount
PE ൌ The Prepayment Amount calculated according to Section F.1 F ൌ The percentage of the Speci al Tax A Obligation that the owner of the Assessor’s Parcelሺsሻ is partially prepaying
A ൌ The Prepayment Administrative Fees and Expenses from Sect ion F.1 The owner of any Assessor’s Parcel who desires such partial prepayment shall notify the CFD Administrator of (i) such owner’s intent to partially prepa y the Special Tax A Obligation, (ii) the percentage by which the Special Tax A Obligation shall be prepaid, and (iii) the company or agency that will be acting as the escrow agent, if a ny. The CFD Administrator shall provide the owner with a statement of the amount required f o r t h e p a r t i a l prepayment of the Special Tax A Obligation for an Assessor’s Parcel within sixty (60) days of the request and may charge a reasonable fee for providing this service.
With respect to any Assessor’s Parcel that is partially prepaid , the City shall (i) distribute the funds remitted to it according to SectionF.1, and (ii) indicate in the records of CFD No. 2022‐ 1 IA1 that there has been a partial prepayment of the Special T ax A Obligation and that a portion of the Special Tax with respect to such Assessor’s Parc el, equal to the outstanding percentage (1.00 ‐ F) of the Maximum Special Tax A, shall continue to be levied on such Assessor’s Parcel.
Notwithstanding the foregoing, no partial prepayment shall be a llowed unless the aggregate amount of Maximum Special Tax A less Administrative Expenses that may be levied on Taxable Property, resp ectively, after the proposed pa rtial prepayment is at least
1.1 times the Debt Service on all Outstanding Bonds in each Fiscal Year.
The Special Tax B may not be prepaid.
ATTACHMENT 3
37 G. SPECIAL TAX REDUCTION
The following definitions apply to this Section G:
“Base Price” means, with respect to the Residential Units in each Plan Type as of the date of t h e a p p l i c a b l e P r i c e P o i n t S t u d y , t h e b a s e p r i c e o f s u c h R e s i d ential Units as estimated by the Price Point Consultant, excluding potential appreciation, premiums, options, or upgrades, based upon their actual or expected characteristics, such as living area, view, or lot size. “Plan Type” means a discrete residential plan type, generally consisting of Residential Units t h a t s h a r e a c o m m o n p r o d u c t t y p e ( e . g . d e t a c h e d , a t t a c h e d o r c luster) and that have nearly identical amounts of living area , that is constructed or expect ed to be constructed within CFD No. 2022‐1 IA 1, as identified in the Price Point Study. “Price Point Consultant” means any consultant or firm of such consultants selected by C FD No. 2022‐1 IA 1 that (a) has substant ial experience in performing p rice point studies or otherwis e estimating or confirming pricing for Residential Units within c ommunity facilities districts; (b) is well‐versed in analyzing economic and real estate data that rel ate to the pricing of Residential Units in community facilities districts; (c) is independent and not under the control of CFD No. 2022‐1 IA 1, the City, or the developer; (d) does not have any substantial interest, direct or indirect, with or in CFD No. 2022‐1 IA 1, the City, any owner of r e a l p r o p e r t y w i t h i n C F D N o . 2022‐1 IA 1, or any real property in CFD No. 2022‐1 IA 1; and ( e) is not connected with CFD No. 2022‐1 IA 1 or the City as an officer or employee thereof, but who may be regularly retained to make reports to CFD No. 2022‐1 IA 1 or the City.
“Price Point Study” means a price point study or a letter updating a previous pric e point study which (a) has been prepared by the Price Point Consultant; (b) sets forth the Plan Types constructed or expected to be co nstructed within CFD No. 2022‐1 I A 1 ; ( c ) s e t s f o r t h t h e estimated number of constructed and expected Residential Units for each Plan Type; (d) sets forth estimates of the Base Price for each Plan Type; and (e) uses a date for estimating 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 this Section G.
“Total Effective Tax Rate” m e a n s , f o r a P l a n T y p e , t h e T o t a l T a x B u r d e n f o r s u c h P l a n T y pe divided by the Base Price for such Plan Type, converted to a percentage. “Total Effective Tax Rate Limit” means 2.00%.
“Total Tax Burden” m e a n s , w i t h r e s p e c t t o a P l a n T y p e , f o r t h e F i s c a l Y e a r f o r w hich the calculation is being performed, the sum of the Assigned Special Tax, estimated ad valorem property taxes, special assessments, special taxes for any over lapping community facilities districts, and any other governmental taxes, fees and charges levied or imposed on Residential U n i t s o f s u c h P l a n T y p e i n C F D N o . 2 0 2 2 ‐ 1 I A 1 i n s u c h F i s c a l Year or that would have been levied or imposed on all such Residential Units had they been subject to such levies (excluding homeowners’ association dues and Property Assessed Clean Energy (PACE) charges imposed pursuant to AB 811 or SB 555).
ATTACHMENT 3
38 P r i o r t o t h e i s s u a n c e o f t h e f i r s t s e r i e s o f B o n d s f o r C F D N o . 2022‐1 IA 1, the following steps shall be taken for each Land Use Class of for‐sale Residential Property in CFD No. 2022‐1 IA 1 for evaluating the Special Tax A:
1. At least 30 days prior to the issuance of the first series of B onds for CFD No. 2022‐1 IA 1, 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. 2022‐1 IA 1.
3. Separately, for each Land Use Class of for‐sale Residential Property in CFD No. 2022‐1 IA 1, the CFD Administrator shall determine whether or not the Total Effective Tax Rate for a l l P l a n T y p e s i n a L a n d U s e C l a s s i s l e s s t h a n o r e q u a l t o t h e Total Effective Tax Rate Limit.
a. If the Total Effective Tax Rate for all Plan Types in a Land Us e Class is less than or equal to the Total Effective Tax Rate Limit, then there shall be no change in Special Tax A rate for such Land Use Class in CFD No. 2022‐1 IA 1. b. If the Total Effective Tax Rate for any Plan Type in a Land Use Class is greater t h a n t h e T o t a l E f f e c t i v e T a x R a t e L i m i t , t h e C F D A d m i n i s t r a t o r shall calculate a r e v i s e d A s s i g n e d S p e c i a l T a x A r a t e t h a t d o e s n o t c a u s e t h e T o tal Effective Tax Rate for any Plan Type in such Land Use Class to exceed the Tot al Effective Tax R a t e L i m i t a n d a s s i g n t h e r e v i s e d A s s i g n e d S p e c i a l T a x A r a t e to the Land Use Class.
4. If the Assigned Special Tax A for any Land Use Class is revised pursuant to Step 3b above, the CFD Administrator shall calculate a revised Backup Special Tax A rate for each applicable Final Map within CFD No. 2022‐1 IA 1. The revised Backup Special Tax A for each applicable Final Map shall be an amount (rounded to the nearest whole dollar) calculated pursuant to the formula below:
𝐑𝐁𝐒𝐓 ൌ 𝐁𝐒𝐓 ൈ ሺ𝟏 𝐑𝐀𝐒𝐓 െ 𝐀𝐒𝐓
𝐀𝐒𝐓
ሻ
The terms above have the following meanings:
RBST ൌ Revised Backup Special Tax A
BST ൌ The Backup Special Tax A for the Final Map, as set forth in Section C.2.
RAST ൌ The total estimated Assigned Special Tax A levy for all L and Use Classes of Developed Property in the Final Map, assuming buildout of CFD No. 2022-1 IA 1, including any r e d u c e d A s s i g n e d S p e c i a l T a x A a m o u n t s r e s u l t i n g f r o m t h e c a l c ulations in Step 3b above.
AST ൌ The total estimated Assigned Special Tax A levy for al l Land Use Classes of Developed P r o p e r t y i n t h e F i n a l M a p , a s s u m i n g b u i l d o u t o f C F D N O . 2 0 2 2 - 1 I A 1 b a s e d o n t h e Assigned Special Tax A rates in effect prior to the reduction, pursuant to steps 3a and 3b.
5. If the Assigned Special Tax A for any Land Use Class is revised pursuant to Step 3b above, the CFD Administrator shall also prepare and execute a Certific ate to Amend the Special Tax substantially in the form of Exhibit “A” hereto and shall deliver such Certificate to ATTACHMENT 3
39 Amend the Special Tax for CFD No. 2022‐1 IA 1. 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 A for a Land Use Class as calc ulated pursuant to step 3b, or (ii) the Assigned Special Tax A as identified in Table 1 of Section C for a Land Use C l a s s t h a t w a s n o t r e v i s e d a s d e t e r m i n e d p u r s u a n t t o s t e p 3 a ; as well as either (i) the revised Backup Special Tax A as calculated pursuant to Step 4, or (ii) the Backup Special Tax A as identified in Section C.2 that was not revised as dete rmined pursuant to step 4 above.
6. If the anticipated date of issuance for the first series of Bon ds is within 180 days of the date of receipt of the Price Point Study by the CFD Administrat or, CFD No. 2022‐1 IA 1 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 first series of Bonds, the Assigned Special Tax A for each Land Use Class and the Back up Special Tax shall be as set forth in such Certificate to Amend the Special Tax. If t he date of issuance of the first series of Bonds is not within 180 days of the date of rec eipt of the Price Point Study by the CFD Administrator, such Certificate to Amend the Special Tax shall not be acknowledged by CFD No. 2022‐1 IA 1 and shall, as of such date, b e v o i d a n d o f n o further force and effect. In such case, if subsequently a first series of Bonds is expected t o b e i s s u e d , a t l e a s t 3 0 d a y s p r i o r t o t h a t e x p e c t e d d a t e , s t ep s 1 t h r o u g h 5 o f t h i s section shall be performed based on a new Price Point Study.
7. After the execution by CFD No. 2022‐1 IA 1 of the acknowledgmen t on the Certificate to Amend the Special Tax, CFD No. 2022‐1 IA 1 shall cause to be re corded in the records of the County Recorder an Amended Notice of Special Tax Lien for CFD No. 2022‐1 IA 1 reflecting the Assigned Special Tax A and the Backup Special Ta x A for CFD No. 2022‐1 IA 1 set forth in such Certificate to Amend the Special Tax.
8. If the Assigned Special Tax A 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 A or Backup Special Tax A, and no Certific ate to Amend the Special Tax shall be required.
H. TERM OF SPECIAL TAX
The Special Tax A shall be levied as long as necessary to meet the Special Tax Requirement for Facilities for a period not to exceed sixty (60) Fiscal Years c ommencing with Fiscal Year 2022‐23, provided however that the Special Tax may cease to be levied in an earlier Fiscal Year if the CFD Administrator has determined tha t all required interest and pri ncipal payments on all Outstanding Bonds have been paid.
The Special Tax B shall be levied in perpetuity as necessary to s a t i s f y t h e S p e c i a l T a x Requirement for Services.
I. EXEMPTIONS
The CFD Administrator shall classify as Exempt Property (i) Assessor’s Parcels of Public Property, (ii) Assessor’s Parcels of Property Owner Association Property, or (iii) Assessor’s Parcels which ATTACHMENT 3
40 are used as places of worship and are exempt from ad valorem pr operty taxes because they are owned by a religious organization, and (iv) Assessor’s Parcels with public or utility easements making impractical their utilization for other than the purposes set forth in the easement as determined reasonably by the CFD Administrator, provided that no such classification in (i) through (iv), inclusive, would reduce the sum of all Taxable Pr operty in CFD No. 2022‐1 IA 1 to less than 14.11 Acres. Assessor’s Parcels which cannot be classified as Exempt Property because such classification would reduce the sum of all Taxable Propert y in CFD No. 2022‐1 IA 1 to less than 14.11 Acres shall be classified as Provisional Property and will continue to be subject to the CFD No. 2022‐1 IA 1 Special Taxes accordingly. Tax exempt status for the purpose of this paragraph will be assigned by the CFD Administrator in the chronological order in which property becomes eligible for classification as Exempt Property.
If the use of an Assessor’s Parcel of Exempt Property changes s o that such Assessor’s Parcel is n o l o n g e r c l a s s i f i e d a s o n e o f t h e u s e s s e t f o r t h i n t h e f i r s t paragraph of Section I above that would make such Assessor’s Parcel eligible to be classified as Exempt Property, such Assessor’s P a r c e l s h a l l c e a s e t o b e c l a s s i f i e d a s E x e m p t P r o p e r t y a n d s h a ll be deemed to be Taxable Property.
J. APPEALS
Any landowner who pays the Special Tax and claims the amount of the Special Tax levied on his or her Assessor’s Parcel is in error shall first consult with t he CFD Administrator regarding such error not later than thirty‐six (36) months after first having p a i d t h e f i r s t i n s t a l l m e n t o f t h e Special Tax that is disputed. If following such consultation, the CFD Administrator determines that an error has occurred, then the CFD Administrator shall take any of the following actions, in order of priority, in order to correct the error:
(i) Amend the Special Tax levy on the landowner’s Assessor’s Parcel(s) for the current Fiscal Year prior to the payment date,
(ii) Require the CFD to reimburse the landowner for the amount of the overpayment to the extent of available CFD funds, or
(iii) Grant a credit against, eliminate or reduce the future Sp ecial Taxes on the landowner’s Assessor’s Parcel(s) in the amount of the overpayment.
If following such consultation and action by the CFD Administra tor the landowner believes such error still exists, such person may file a written notice of appeal with the Council. Upon the receipt of such notice, the Council or designee may establish such procedures as deemed necessary to undertake the review of any such appeal. If the Council or designee determines an error still exists, the CFD Administrator shall take any of the actions described as (i), (ii) and (iii) above, in order of priority, in order to correct the error.
K. INTERPRETATIONS
The Council or designee thereof shall interpret this Rate and Method of Apportionment for purposes of clarifying any ambiguities and make determinations relative to the administration of the Special Tax and any landowner appeals. The decision of t he Council or designee shall be final.
ATTACHMENT 3
EXHIBIT A
CERTIFICATE TO AMEND THE SPECIAL TAX
CITY OF RICHMOND
COMMUNITY FACILITIES DISTRICT NO. 2022‐1 (POINT MOLATE) IMPROVEMENT AREA NO. 1
TAX REDUCTION CERTIFICATE
1. Pursuant to Section G of the Rate and Method of Apportionment f or Improvement Area No. 1 of City of Richmond Community Facilities District No. 202 2‐1 (Point Molate) (the “RMA”), as attached to the Notice of Special Tax Lien, recorded in the Official Records of the County of Contra Costa as Instrument No. __________ on __/__/____, the City of Richmond (the “City”) hereby reduces the Assigned Special Tax A rates for Developed Property within CFD No. 2022‐1 IA 1 set forth in Table 1 of the RMA.
2. The calculations made pursuant to Section G were based upon a P rice Point Study that was received by the CFD Administrator on __/__/____.
3. The Information in Table 1 relating to the Assigned Special Tax A for Developed Property within CFD No. 2022‐1 IA 1 shall be amended and restated as shown in Table A‐1 below:
4. T h e B a c k u p S p e c i a l T a x A f o r a n A s s e s s o r ’ s P a r c e l o f D e v e l o p e d Property shall equal $[ ] per Acre for each Final Map as shown in Table A‐2 below:
5. On each July 1, commencing on July 1, ____, the Assigned Specia l Tax A rates in Table A‐ 1 and the Backup Special Tax A rates in 4 above shall be increa sed by an amount equal to two percent (2%) of the amount in effect for the previous Fiscal Year.
6. U p o n e x e c u t i o n o f t h e c e r t i f i c a t e b y t h e C i t y a n d C F D N o . 2 0 2 2 ‐1 IA 1, the City shall c a u s e a n a m e n d e d N o t i c e o f S p e c i a l T a x L i e n f o r C F D N o . 2 0 2 2 ‐ 1 I A 1 t o b e r e c o r d e d reflecting the modifications set forth herein.
Land Use
Class Land Use Type Assigned
Special Tax A
1 Single Family Residential Property $[ ] per Residential Unit 2 Low-Rise Apartment/Townhome Property $[ ] per Residential Unit 3 Mid-Rise Condominium Property $[ ] per Residential Unit 4 For-Rent Low-Rise
Apartment/Townhome Property $[ ] per Residential Unit 5 For-Rent Mid-Rise Apartment Property $[ ] per Residential Unit 6 For-Rent Affordable Residential Propert y $[ ] per Residential Unit 7 Mixed-Use Non-Residential Property $[ ] per Square Foot 8 Neighborhood Retail Property $[ ] per Square Foot ATTACHMENT 3
42 Submitted:
CFD ADMINISTRATOR
B y : _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ D a t e : _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ ____ By execution hereof, the undersigned acknowledges on behalf of CFD No. 2022‐1 IA 1, receipt of this certificate and modification of the RMA as set forth in this certificate.
Improvement Area No. 1 of City of Richmond Community Facilities District No. 2022‐1 (Point Molate).
B y : _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ D a t e : _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ ____
ATTACHMENT 3
43 EXHIBIT D
RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX FOR
THE CITY OF RICHMOND
COMMUNITY FACILITIES DISTRICT NO. 2022-1
(POINT MOLATE)
IMPROVEMENT AREA NO. 2
ATTACHMENT 3
44 Rate and Method of
Apportionment of Special Tax
City of Richmond
Community Facilities District No. 2022‐1
(Point Molate)
Improvement Area No. 2
A Special Tax A and a Special Ta x B shall be levied on all Taxa ble Property within the boundaries o f I m p r o v e m e n t A r e a N o . 2 o f t h e C i t y o f R i c h m o n d C o m m u n i t y F a cilities District No. 2022‐1 (Point Molate) (“CFD No. 2022‐1 IA 2”) and collected each Fiscal Year commencing in Fiscal Year 2022‐23, in an amount determined by the CFD Administrator through the application of the procedures described below. All the real property within CFD No. 2022‐1 IA 2, unless exempted b y l a w o r b y t h e p r o v i s i o n s h e r e o f , s h a l l b e t a x e d f o r t h e p u r poses, to the extent, and in the manner herein provided.
A. DEFINITIONS
The terms hereinafter set forth have the following meanings:
“Acquisition Agreement” means that Acquisition Agreement relating to CFD No. 2022‐1 (and all improvement areas designated therein) by and between the City and the Developer. “Acre” o r “Acreage” m e a n s t h e l a n d a r e a o f a n A s s e s s o r ’ s P a r c e l a s s h o w n o n a n A s sessor’s Parcel Map, or if the land area is not shown on an Assessor’s P arcel Map, the land area shown on the applicable Final Map. An Acre means 43,560 square feet of land. “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 actual or reasonably estimated costs related to the administration of CFD No. 2022‐1 IA 2 including, but not limite d to: the costs of preparing and computing the Special Taxes (whether by the City or designee thereof or both); the costs of collecting the Special Taxes (whether by the City, the County o r otherwise); the costs of remitting the Special Taxes to the Trustee; the costs of the Tr ustee (including its legal counsel) in the discharge of the duties required of it under the Indentu re; the costs to the City, CFD No. 2022‐1 IA1, or any designee thereof complying with arbitrage rebate requirements, including without limitation rebate liability costs and periodic rebate c alculat ions ; the cos ts to the Cit y, CFD No. 2022‐1 IA 2, or any designee thereof complying with dis closure or reporting requirements of the City or CFD No. 2022‐1 IA 2, associated wit h applicable federal and State laws; the costs associated with preparing Special Tax disclosur e statements and responding to public inquiries regarding the Special Taxes; the costs to the City, CFD No. 2022‐1 IA 2, or any designee thereof related to an appeal of the Special Taxes; and the City’s annual administration ATTACHMENT 3
45 fees and third party expenses. Administrative Expenses shall al so include amounts estimated or advanced by the City or CFD No. 2022‐1 IA 2 for any other admin istrative purposes of CFD No. 2022‐1 IA 2, including attorney’s fees and other costs related to commencing and pursuing any foreclosure of delinquent Special Taxes.
“Approved Property” means all Assessor’s Parcels of Taxable Property exclusive of Provisional P r o p e r t y : ( i ) t h a t a r e i n c l u d e d i n a F i n a l M a p t h a t w a s r e c o r d ed prior to the January 1st preceding the Fiscal Year in which the Special Taxes are being levied, and (ii) that have not been i s s u e d a B u i l d i n g P e r m i t o n o r p r i o r t o t h e M a y 1 s t p r e c e d i n g the Fiscal Year in which the Special Taxes are being levied.
“Assessor” means the Assessor of the County of Contra Costa. “Assessor’s Parcel” m e a n s a l o t , u n i t , o r p a r c e l s h o w n o n a n A s s e s s o r ’ s P a r c e l M a p w i t h a n assigned Assessor’s Parcel Number.
“Assessor’s Parcel Map” means an official map of the Assessor designating parcels by Assessor’s Parcel Number.
“Assessor’s Parcel Number” means the number assigned to an Assessor’s Parcel by the Count y for purposes of identification.
“Assigned Special Tax A” means the Special Tax of that name described in Section C.1 below. “Authorized Facilities ” means those facilities and capital fees that are authorized t o be financed by CFD No. 2022‐1 IA 2.
“Backup Special Tax A” means the Special Tax of that name described in Section C.2 below. “Base Year” means the Fiscal Year beginning July 1, 2022 and ending June 30, 2023. “Bonds” means any bonds or other Debt of CFD No. 2022‐1 IA 2, whether in one or more series, secured by the levy of Special Taxes.
“Boundary Map” means the map of the boundaries of CFD No. 2022‐1 IA 2 recorded in the Contra Costa County Recorder’s Office.
“Building Permit” m e a n s a b u i l d i n g p e r m i t f o r c o n s t r u c t i o n o f a R e s i d e n t i a l U n i t o r N o n ‐ Residential Property within CFD No. 2022‐1 IA 2 issued by the City. “Building Square Footage” means all of the square footage of usable area within the peri meter of a residential structure, not including any carport, walkway, garage, overhang, or similar area.
The determination of Building Square Footage shall be made by r eference to the Building Permit(s) issued for such structure and/or by reference to appropriate records kept by the City. “Calendar Year” means the period commencing January 1st of any year and ending t h e following December 31.
“CFD Administrator” means an authorized representative of the City, or designee th ereof, responsible for determining the Special Tax Requirement for Fac ilities and the Special Tax R e q u i r e m e n t f o r S e r v i c e s , f o r p r e p a r i n g t h e S p e c i a l T a x r o l l a nd/or calculating the Backup Special Tax A.
ATTACHMENT 3