Exposure Time. Exposure time is the length of time the subject property would have been exposed for sale in the market had it sold on the effective valuation date at the concluded market value. Exposure time is always presumed to precede the effective date of the Appraisal. Based on the Appraiser’s review of recent sales transactions for similar properties and its analysis of supply 36 and demand in the local land market, the Appraiser’s opinion was that the probable exposure time for the appraised property at the concluded market value stated previously is 12 months.
Marketing Time. Marketing time is an estimate of the amount of time it might take to sell a property at the concluded market value immediately following the effective date of value. As the Appraiser foresees no significant changes in market conditions in the near term, the Appraiser’s opinion was that a reasonable marketing period for the appraised property in bulk is likely to be the same as the exposure time. Accordingly, the Appraiser estimated the marketing period at 12 months or less.
No assurance can be given that a sale of the property in bulk through foreclosure could be achieved or attained over an extended period of time; real estate is cyclical in nature, and it is impossible to accurately forecast and project specific demand over a particular period. See “SPECIAL RISK FACTORS – Property Values and Property Development.” Limitations of Appraisal Valuation. Property values may not be evenly distributed throughout Improvement Area No. 1; thus, certain parcels may have a greater value than others.
This disparity is significant because in the event of nonpayment of the Special Tax, the only remedy is to foreclose against the delinquent parcel.
No assurance can be given that the foregoing valuation can or will be maintained during the period of time that the 2024 Bonds are outstanding in that the City has no control over the market value of the property within Improvement Area No. 1 or the amount of additional indebtedness that may be issued in the future by other public agencies, the payment of which, through the levy of a tax or an assessment, may be on a parity with the Special Taxes. See “–Overlapping Liens and Priority of Lien” below.
For a description of certain risks that might affect the assumptions made in the Appraisal, see “SPECIAL RISK FACTORS” herein.
Value to Special Tax Burden Ratios
In comparing the value of the real property within Improvement Area No. 1 and the principal amount of the Bonds, it should be noted that only the real property upon which there is a delinquent Special Tax can be foreclosed upon, and the real property within Improvement Area No. 1 cannot be foreclosed upon as a whole to pay delinquent Special Taxes of the owners of such parcels within Improvement Area No. 1 unless all of the property is subject to a delinquent Special Tax. In any event, individual parcels may be foreclosed upon separately to pay delinquent Special Taxes levied against such parcels.
Other public agencies whose boundaries overlap those of Improvement Area No. 1 could, without the consent of the City and in certain cases without the consent of the owners of the land within Improvement Area No. 1, impose additional taxes or assessment liens on the land within Improvement Area No. 1. Property owners can also voluntarily add Property Assessed Clean Energy (PACE) assessment liens on their property to finance energy efficiency improvements.
The lien created on the land within Improvement Area No. 1 through the levy of such additional taxes or assessments may be on a parity with the lien of the Special Tax. In addition, construction loans may be obtained by the Master Developer and subsequent merchant homebuilders, and home loans may be obtained by ultimate homeowners. The deeds of trust securing such debt on property within Improvement Area No. 1, however, will be subordinate to the lien of the Special Tax.
37 Appraised Value to Lien Ratios by Development Status and Land Use. The following table sets forth appraised value, estimated maximum and actual facilities special tax amounts, allocable debt, and value to lien ratios by development status in Improvement Area No. 1 as of May 29, 2024 (the Appraiser’s date of value), based on the assumptions detailed therein.
Table 1
City of Roseville
Amoruso Ranch Community Facilities No. 1 (Public Facilities) Improvement Area No. 1 – Series 2024 Bonds
Value to Lien Ratios by Development Status and Land Use Development Status/
Land Use
Planned
Units
Estimated 2024-25
Maximum
Annual Facilities
Special Tax
Revenue (1)
Estimated
2024-25
Facilities
Special
Tax Levy (2)
Appraised
Value (3)
Share of CFD
Bonds* (4)
Overlapping
Debt
Appraised
Value to
Lien* (5)
Appraised /
Overlapping
Debt Value
to Lien* (5)
Developed Parcels 481 $1,747,260 $1,747,260 $104,659,000 $30,400,000 $68,531 3.4 3.4 Large Lot Parcels 0 0 0 0 0 0 n/a n/a
Totals: 481 $1,747,260 $1,747,260 $104,659,000 $30,400,000 $68,531 3.4 3.4 ______________________________
(1) Increases by 2% each Fiscal Year.
(2) Estimated 2024-25 Maximum Annual Facilities Special Tax Revenue based on formula set forth in the Rate and Method. (3) Appraised value amounts provided by the Appraiser.
(4) Allocated based on the projected Fiscal Year 2024-25 Facilities Special Tax levy. (5) Value-to-lien ratio is for the 2024 Bonds to be sold; overlapping debt based on 2023-24 fiscal year.
Source: Master Developer, Integra Realty Resources, EPS. * Preliminary, subject to change.
38 Appraised Value to Lien Ratios by Ownership. The following table sets forth appraised value, estimated maximum and actual facilities special tax amounts, allocable debt, and value to lien ratios by ownership in Improvement Area No. 1 as of May 29, 2024 (the Appraiser’s date of value), based on the assumptions detailed therein.
Table 2
City of Roseville
Amoruso Ranch Community Facilities No. 1 (Public Facilities) Improvement Area No. 1 – Series 2024 Bonds
Value to Lien Ratios by Ownership
Ownership
Planned
Units
Estimated 2024-25
Maximum Annual
Facilities Special
Tax(1)
Estimated 2024-25
Facilities Special
Tax Levy(2)
Appraised
Value(3)
Share of CFD
Bonds* (4)
Overlapping
Debt
Appraised
Value to
Lien* (5)
Appraised /
Overlapping
Debt Value
to Lien* (5)
Richmond American 138 $605,268 $605,268 $30,222,000 $10,530,858 $22,722 2.9 2.9 D.R. Horton 204 716,652 716,652 47,888,000 $12,468,792 28,316 3.8 3.8 Amoruso P1A - Roseville, L.P. (6) 139 425,340 425,340 26,549,000 $7,400,350 17,493 3.6 3.6 Totals: 481 $1,747,260 $1,747,260 $104,659,000 $30,400,000 $68,531 3.4 3.4 ______________________________
(1) Increases by 2% each Fiscal Year.
(2) Estimated 2024-25 Maximum Annual Facilities Special Tax Revenue based on formula set forth in the Rate and Method. (3) Appraised value amounts provided by the Appraiser.
(4) Allocated based on the projected Fiscal Year 2024-25 Facilities Special Tax levy. (5) Value-to-lien ratio is for the 2024 Bonds to be sold; overlapping debt based on 2023-24 fiscal year. (6) Also referred to herein as the Hearthstone Land Bank.
Source: Master Developer, Integra Realty Resources, EPS. * Preliminary, subject to change.
39 Appraised Value to Lien Ratios by Lien Ranges. The following table sets forth appraised value, estimated maximum and actual facilities special tax amounts, allocable debt, and value to lien ratios by lien ranges in Improvement Area No. 1 as of May 29, 2024 (the Appraiser’s date of value), based on the assumptions detailed therein.
Table 3
City of Roseville
Amoruso Ranch Community Facilities No. 1 (Public Facilities) Improvement Area No. 1 – Series 2024 Bonds
Value to Lien Ranges
Value to Lien Ranges
Planned
Units
Estimated 2024-
25Maximum Annual
Facilities Special Tax
Revenue(1)
Estimated 2024-25
Facilities Special
Tax Levy(2)
Appraised
Value(3)
Share of CFD
Bonds*(4)
Overlapping
Debt
Average
Appraised
Value to
Lien* (5)
Average
Appraised /
Overlapping Debt
Value to Lien* (5)
Less than 3.00 138 $605,268 $605,268 $30,222,000 $10,530,858 $22,722 2.9 2.9
3.00 to 4.00 262 876,996 876,996 53,136,000 15,258,564 34,199 3.5 3.5 Greater than 4.00 81 264,996 264,996 21,301,000 4,610,578 11,610 4.6 4.6 Totals: 481 $1,747,260 $1,747,260 $104,659,000 $30,400,000 $68,531 3.4 3.4 ______________________________
(1) Increases by 2% each Fiscal Year.
(2) Estimated 2024-25 Maximum Annual Facilities Special Tax Revenue based on formula set forth in the Rate and Method. (3) Appraised value amounts provided by the Appraiser.
(4) Allocated based on the projected Fiscal Year 2024-25 Facilities Special Tax levy. (5) Value-to-lien ratio is for the 2024 Bonds to be sold; overlapping debt based on 2023-24 fiscal year.
Source: Developer, Integra Realty Resources, EPS.
* Preliminary, subject to change.
40 No History of Special Tax Collections
Fiscal Year 2024-25 is the first year in which the Special Tax is being levied in Improvement Area No. 1. Accordingly, there is no history of special tax collections.
Overlapping Liens and Priority of Lien
The principal of and interest on the Bonds are payable from the Special Tax authorized to be collected within Improvement Area No. 1, and payment of the Special Tax is secured by a lien on certain real property within Improvement Area No. 1. Such lien is co-equal to and independent of the lien for general taxes and any other liens imposed under the Act, regardless of when they are imposed on the property in Improvement Area No. 1. The imposition of additional special taxes, assessments and general property taxes will increase the amount of independent and co-equal liens which must be satisfied in foreclosure. The City, the County and certain other public agencies are authorized by the Act to form other community facilities districts and improvement areas and, under other provisions of State law, to form special assessment districts, either or both of which could include all or a portion of the land within Improvement Area No. 1.
Set forth below is an overlapping debt table showing the existing direct and overlapping tax and assessment debt payable with respect to property within Improvement Area No. 1. This table is taken from information prepared by California Municipal Statistics Inc. as of the date indicated, and is included for general information purposes only. The general obligation bond debt allocation is based on assessed values. The table below is based on Fiscal Year 2023-24 assessed values, which do not take into account the sale of lots to the Merchant Builders. To the extent the assessed values in Improvement Area No. 1 are higher in future years, the general obligation bond debt allocation will be greater than what is shown.
The City has not reviewed the data for completeness or accuracy and makes no representations in connection therewith. In addition to bonded debt, property in Improvement Area No. 1 is also subject to special taxes authorized to be levied on behalf of the City’s Amoruso Ranch Community Facilities District No. 2 (Public Services) and Community Facilities District No. 3 (Municipal Services) for municipal services, which districts provide for escalating annual special taxes on residential property.
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41 Table 4
City of Roseville
Amoruso Ranch Community Facilities District No. 1 (Public Facilities) Improvement Area No. 1 – Series 2024 Bonds
Summary of Overlapping Debt
As of April 1, 2024
2023-24 Assessed Valuation: $4,011,493
DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT: % Applicable Debt 4/1/24 Sierra Joint Community College SFID No. 4 General Obligation Bonds 0.004% $ 8,898 Roseville Joint Union High School District General Obligation Bonds 0.010 9,698 Roseville Joint Union High School District SFID No. 1 General Obligation Bonds 0.076 48,650 Roseville City School District General Obligation Bonds 0.017 1,285 City of Roseville Amoruso CFD No. 1, Improvement Area No. 1 100.000 0 (1) TOTAL DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT $68,531 OVERLAPPING GENERAL FUND DEBT:
Placer County General Fund Obligations 0.004% $ 2,952
Sierra Joint Community College District Certificates of Participation 0.003 18 Roseville Union High School District Certificates of Participation 0.010 6,104 Roseville City School District General Fund Obligations 0.017 916 City of Roseville General Fund Obligations 0.013 1,804
Placer County Mosquito and Vector Control District Certificates of Participation 0.004 60 TOTAL OVERLAPPING GENERAL FUND DEBT $11,854
COMBINED TOTAL DEBT $80,385 (2)
Ratios to 2023-24 Assessed Valuation:
Direct Debt ($0).................................................................... 0.00% Total Direct and Overlapping Tax and Assessment Debt....... 1.71% Combined Total Debt ............................................................. 2.00% ____________________
(1) Excludes the 2024 Bonds to be sold.
(2) Excludes tax and revenue anticipation notes, revenue, mortgage revenue and non-bonded capital lease obligations.
Sources: California Municipal Statistics, Inc.
There can be no assurance that the Merchant Builders, their affiliates or any subsequent owner will not petition for the formation of other community facilities districts and improvement areas or for a special assessment district or districts and that parity special taxes or special assessments will not be levied by the County or some other public agency to finance additional public facilities; however, no other special districts are currently contemplated by the City or the Master Developer.
Private liens, such as deeds of trust securing loans obtained by the Merchant Builders, may be placed upon property in Improvement Area No. 1 at any time. Under California law, the Special Taxes have priority over all existing and future private liens imposed on property subject to the lien of the Special Taxes.
42 Estimated Overall Tax Burden
The following table shows the estimated overall tax burden for representative single-family residential homes in Improvement Area No. 1 (both LDR and MDR types), based on Fiscal Year 2023-24. As shown in the table, if the Special Tax had been levied in Fiscal Year 2023-24, the overall estimated tax burden would be approximately 1.82% to 1.88%.
Table 5
City of Roseville
Amoruso Ranch Community Facilities No. 1 (Public Facilities) Improvement Area No. 1 – Series 2024 Bonds
Estimated Overall Tax Burden Fiscal Year 2023-24
Item Assumptions
LDR
(60 ft. lot)
LDR
(50 ft. lot) MDR
Estimated Home Value (1) $675,000 $601,667 $468,750
Homeowners' Exemption (7,000) (7,000) (7,000)
Assessed Value $668,000 $594,667 $461,750
Property Taxes (FY 2023-24) (2)
Proposition 13 Property Tax 1.000000% $6,680 $5,947 $4,618 Sierra College 0.015164 101 90 70
Roseville City School District 0.009255 62 55 43
Roseville JUHSD 0.045339 303 270 209
Property Tax Totals 1.069758% $7,146 $6,361 $4,940
Direct Charges (3)
Amoruso Ranch CFD No. 1 (IA No. 1) $4,300 $3,600 $3,000 Amoruso Ranch CFD No. 2 436 436 436
Roseville CFD No. 3 392 392 392
Placer Mosquito & Vector Control 23 23 23
Total Direct Charges $5,151 $4,451 $3,851
Total Property Taxes and Direct Charges $12,297 $10,812 $8,791 Overall Tax Burden 1.82% 1.80% 1.88%
(1) From the CFD Hearing Report dated May 1, 2023.
(2) Ad valorem taxes for TRA 005-073.
(3) Provided by the City and EPS.
Source: EPS.
43 SPECIAL RISK FACTORS
The purchase of the 2024 Bonds described in this Official Statement involves a degree of risk that may not be appropriate for some investors. The following includes a discussion of some of the risks that should be considered before making an investment decision.
Limited Obligation of the City to Pay Debt Service
The City has no obligation to pay principal of and interest on the 2024 Bonds in the event Special Tax collections are delinquent, other than from amounts, if any, on deposit in the 2024 Reserve Account of the Reserve Fund or funds derived from the tax sale or foreclosure and sale of parcels on which levies of the Special Tax are delinquent, nor is the City obligated to advance funds to pay such debt service on the 2024 Bonds. The 2024 Bonds are not general obligations of the City but are limited obligations of the City, payable solely from the proceeds of the Special Tax and certain funds held under the Fiscal Agent Agreement, including amounts deposited in the 2024 Reserve Account of the Reserve Fund and investment income thereon, and the proceeds, if any, from the sale of property in the event of a foreclosure. See “SECURITY AND SOURCES OF PAYMENT FOR THE BONDS.” Any tax for the payment of the 2024 Bonds will be limited to the Special Tax to be collected within Improvement Area No. 1.
Concentration of Ownership
Land in Improvement Area No. 1 is 100% owned by D.R. Horton, Richmond American and the Hearthstone Land Bank. No assurance can be given that the Merchant Builders will complete homes on the lots they own (or, in D.R. Horton’s case, the lots planned to be taken down by the Hearthstone Land Bank) and sell the lots to individual homeowners on the timeline projected in this Official Statement or at all.
Owners of property are not personally obligated to pay the Special Tax attributable to their property. Rather, the Special Tax is an obligation only against the parcel of property, secured by the amount which could be realized in a foreclosure proceeding against the property, and not by any promise of the owner to pay. If the value of the property is not sufficient, taking into account other obligations also constituting a lien against the property, the City, Fiscal Agent and owners of the 2024 Bonds have no recourse against the owner, such as filing a lawsuit to collect money.
Failure of the current owners of property or any other future owner of significant property subject to the Special Taxes in Improvement Area No. 1 to pay installments of Special Taxes when due could cause the depletion of amounts in the 2024 Reserve Account of the Reserve Fund prior to reimbursement from the resale of foreclosed property or payment of the delinquent Special Tax and, consequently, result in the delinquency rate reaching a level that would cause an insufficiency in collection of the Special Tax to timely pay debt service on the 2024 Bonds. In that event, there could be a delay or failure in payments on the 2024 Bonds. See “– Bankruptcy and Foreclosure Delays” below and “SECURITY AND SOURCES OF PAYMENT FOR THE BONDS – Delinquent Payments of Special Tax; Covenant for Superior Court Foreclosure.” Appraised Values
The Appraisal summarized in APPENDIX B estimates the market value of the taxable property within Improvement Area No. 1. This market value is merely the present opinion of the Appraiser, and is subject to the assumptions and limiting conditions stated in the Appraisal. The City 44 has not sought the present opinion of any other appraiser of the value of the taxed parcels. A different present opinion of value might be rendered by a different appraiser.
The opinion of value relates to sale by a willing seller to a willing buyer as of the date of valuation, each having similar information and neither being forced by other circumstances to sell or to buy. Consequently, the opinion is of limited use in predicting the selling price at a foreclosure sale, because the sale is forced and the buyer may not have the benefit of full information.
In considering the estimates of value evidenced by the appraisal, it should be noted that the appraisal is based upon a number of standard and special assumptions which affect the estimates as to value, in addition to hypothetical conditions, as set forth in the Appraisal (see APPENDIX B hereto). Some of the improvements to be financed by the 2024 Bonds were not in place as of the date of inspection; thus, the value estimate is subject to a hypothetical condition (of such improvements being in place)
In addition, the opinion is a present opinion. It is based upon present facts and circumstances. Differing facts and circumstances may lead to differing opinions of value. The appraised market value is not evidence of future value because future facts and circumstances may differ significantly from the present.
No assurance can be given that any of the appraised property in Improvement Area No. 1 could be sold in a foreclosure for the estimated market value contained in the Appraisal. Such sale is the primary remedy available to Bondowners if that property should become delinquent in the payment of Special Taxes.
Property Values and Property Development
The value of Taxable Parcels within Improvement Area No. 1 is a critical factor in determining the investment quality of the 2024 Bonds. If a property owner defaults in the payment of the Special Tax, the City may bring an action to foreclose on the delinquent property in an attempt to obtain funds with which to pay debt service on the 2024 Bonds. Land development and land values could be adversely affected by economic and other factors beyond the City’s control, such as: a general economic downturn; adverse judgments in future litigation that could affect the scope, timing or viability of development; relocation of employers out of the area; stricter land use regulations; shortages of water, electricity, natural gas or other utilities; destruction of property caused by earthquake, flood or other natural disasters; environmental pollution or contamination.
The Appraisal information included as APPENDIX B sets forth certain assumptions of the Appraiser in estimating the market value of the property within Improvement Area No. 1 as of the date indicated. No assurance can be given that the land values are accurate if these assumptions are incorrect or that the values will not decline in the future if one or more events, such as natural disasters or adverse economic conditions, occur. See “Appraised Values” above.
Neither the City nor the Underwriter has evaluated development risks. Since these are largely business risks of the type that property owners customarily evaluate individually, and inasmuch as changes in land ownership may well mean changes in the evaluation with respect to any particular parcel, the City is issuing the 2024 Bonds without regard to any such evaluation. Thus, the issuance of the 2024 Bonds in no way implies that the City or the Underwriter has evaluated these risks or the reasonableness of these risks.
45 The following is a discussion of specific risk factors that could affect the timing or scope of property development in Improvement Area No. 1 or the value of property therein.
Land Development. Land values are influenced by the level of development in the area in many respects.
First, undeveloped or partially developed land is generally less valuable than developed land and provides less security to the owners of the 2024 Bonds should it be necessary for the City to foreclose on undeveloped or partially developed property due to the nonpayment of Special Taxes.
Second, failure to complete development on a timely basis could adversely affect the land values of those parcels that have been completed. Lower land values would result in less security for the payment of principal of and interest on the 2024 Bonds and lower proceeds from any foreclosure sale necessitated by delinquencies in the payment of the Special Tax. See “VALUE OF PROPERTY WITHIN IMPROVEMENT AREA NO. 1 – Value to Special Tax Burden Ratios.” No assurance can be given that the proposed development within Improvement Area No. 1 will be completed, and in assessing the investment quality of the 2024 Bonds, prospective purchasers should evaluate the risks of noncompletion.
The Merchant Builders provide no assurances that their respective development projects in Improvement Area No. 1 will be developed or that sources of financing that will be available or will be sufficient to complete their currently projected development. The Merchant Builders do not have any obligation to the City or to owners of the 2024 Bonds to complete their respective development projects in Improvement Area No. 1.
Risks of Real Estate Investment Generally. Continuing development of land within Improvement Area No. 1 may be adversely affected by changes in general or local economic conditions, fluctuations in the real estate market, increased construction costs, development, financing and marketing capabilities of individual property owners, water or electricity shortages, and other similar factors. Development in Improvement Area No. 1 may also be affected by development in surrounding areas, which may compete with development in Improvement Area No. 1. In addition, land development operations are subject to comprehensive federal, state and local regulations, including environmental, land use, zoning and building requirements. There can be no assurance that proposed land development operations within Improvement Area No. 1 will not be adversely affected by future government policies, including, but not limited to, governmental policies to restrict or control development, or future growth control initiatives. There can be no assurance that land development operations within Improvement Area No. 1 will not be adversely affected by these risks.
Natural Disasters. The value of the parcels in Improvement Area No. 1 in the future can be adversely affected by a variety of natural occurrences, particularly those that may affect infrastructure and other public improvements and private improvements on the parcels in Improvement Area No. 1 and the continued habitability and enjoyment of such private improvements.
For example, the areas in and surrounding Improvement Area No. 1, like those in much of California, may be subject to earthquakes or other unpredictable seismic activity, however, Improvement Area No. 1 is not located in a seismic special studies zone.
Other natural disasters could include, without limitation, landslides, floods, droughts, wildfires or tornadoes. One or more natural disasters could occur and could result in damage to improvements of varying seriousness. Although the land in Improvement Area No. 1 is not in a highrisk area (or a special fire hazard severity zone) for wildfires, landslides, floods, or tornadoes, natural disasters such as these are unpredictable and may occur anywhere throughout the State, with 46 devastating consequences. The damage may entail significant repair or replacement costs and that repair or replacement may never occur either because of the cost, or because repair or replacement will not facilitate habitability or other use, or because other considerations preclude such repair or replacement. Under any of these circumstances there could be significant delinquencies in the payment of Special Taxes, and the value of the parcels may well depreciate.
Drought. California has been subject to droughts from time-to-time in the past. Although the City does not believe any future drought would impact development in Improvement Area No. 1, no assurances can be given in this regard.
The City employs a portfolio approach to its water supplies which includes the use of surface water, groundwater and recycled water. This portfolio approach is designed to provide a more reliable water supply. Surface water is the City’s primary water supply which is delivered from the Folsom Reservoir under contracts with the Bureau of Reclamation and the Placer County Water Agency. The City also uses groundwater to supplement its surface water supplies during emergency and drought conditions. These ground water wells are designated to accommodate Aquifer Storage and Recovery (“ASR”). The City’s ASR program allows for the storage of treated surface water in the groundwater basin through direct injection through the ASR wells. This water can be extracted later from the same wells for use during emergency or drought conditions. This water “banking” allows the City to use groundwater without significant impact to the ground water table when surface water supplies are limited. The City also uses recycled water generated from its wastewater treatment facilities for irrigation purposes in commercial landscaping, public rights-of way, parks and golf courses. The use of recycled water reduces the demand for treated water for these purposes and leaving more for domestic use. However, no assurance can be given that a future drought affecting homes in Improvement Area No. 1 would not result in decreased values.
The City indicates it has adequate surface water and groundwater supplies to satisfy the planned development of property in Improvement Area No. 1 in accordance with applicable law and regulations. However, in the event that the City’s water supply is severely limited or cut off by virtue of future actions beyond its control resulting from ongoing or future drought conditions, development within Improvement Area No. 1 may be delayed or even stopped. The Development Agreement provides that should the City need to restrict development it must do so City-wide and cannot single out the Amoruso Ranch property in restricting development activity. Any reduction or interruption in the water supply would also likely cause a reduction in the land value and thus a reduction in the security in the event of a need to foreclose on land within Improvement Area No. 1 following a delinquency in the payment of Special Taxes.
Legal Requirements. Other events that may affect the value of a parcel include changes in the law or application of the law. Such changes may include, without limitation, local growth control initiatives, local utility connection moratoriums and local application of statewide tax and governmental spending limitation measures. Development in Improvement Area No. 1 may also be adversely affected by the application of laws protecting endangered or threatened species.
Hazardous Substances. Any discovery of a hazardous substance detected on property within Improvement Area No. 1 would affect the marketability and the value of some or all of the property in Improvement Area No. 1. In that event, the owners and operators of a parcel within Improvement Area No. 1 may be required by law to remedy conditions of the parcel relating to releases or threatened releases of hazardous substances. The federal Comprehensive Environmental Response, Compensation and Liability Act of 1980, sometimes referred to as “CERCLA” or the “Superfund Act,” is the most well-known and widely applicable of these laws.
California laws with regard to hazardous substances are also applicable to property within 47 Improvement Area No. 1 and are as stringent as the federal laws. Under many of these laws, the owner (or operator) is obligated to remedy a hazardous substance condition of property whether or not the owner (or operator) has anything to do with creating or handling the hazardous substance.
The effect, therefore, should any of the parcels be contaminated by a hazardous substance is to reduce the marketability and value of the parcel by the costs of remedying the condition, because the purchaser, upon becoming owner, will become obligated to remedy the condition just as is the seller.
The values set forth in the Appraisal do not take into account the possible reduction in marketability and value of any of the parcels within Improvement Area No. 1 by reason of the possible liability of the owner (or operator) for the remedy of a hazardous substance condition on a parcel.
Although the City is not aware that the owner (or operator) of any of the property within Improvement Area No. 1 has a current liability for a hazardous substance with respect to any of the parcels, it is possible that such liabilities do currently exist and that the City is not aware of them.
Further, it is possible that liabilities may arise in the future with respect to any of the parcels within Improvement Area No. 1 resulting from the existence, currently, on the parcel of a substance presently classified as hazardous but which has not been released or the release of which is not presently threatened, or may arise in the future resulting from the existence, currently, on the parcel of a substance not presently classified as hazardous but which may in the future be so classified.
Further, such liabilities may arise not simply from the existence of a hazardous substance but from the method of handling it. All of these possibilities could significantly affect the value of a parcel within Improvement Area No. 1 that is realizable upon a foreclosure sale.
Endangered and Threatened Species. It is illegal to harm or disturb any plants or animals in their habitat that have been listed as endangered species by the United States Fish & Wildlife Service under the Federal Endangered Species Act or by the California Fish & Game Commission under the California Endangered Species Act without a permit. Although the Master Developer believes that no federally listed endangered or threatened species would be affected by the proposed development within Improvement Area No. 1, other than any that are permitted by the entitlements already received (which allow for the impact of development and specify the mitigation required), the discovery of an endangered plant or animal could delay development of vacant property in Improvement Area No. 1 or reduce the value of undeveloped property.
Levy and Collection of Special Taxes
General. The principal source of payment of principal of and interest on the 2024 Bonds is the proceeds of the annual levy and collection of the Special Tax against property within Improvement Area No. 1.
Limitation on Maximum Special Tax Rate. The annual levy of the Special Tax is subject to the Maximum Annual Facilities Special Tax rate authorized in the Rate and Method. The levy cannot be made at a higher rate even if the failure to do so means that the estimated proceeds of the levy and collection of the Special Tax, together with other available funds, will not be sufficient to pay debt service on the 2024 Bonds.
In addition to the Maximum Annual Facilities Special Tax rate limitation in the Rate and Method, Section 53321(d) of the Act provides that the special tax levied against any parcel for which an occupancy permit for private residential use has been issued may not be increased as a consequence of delinquency or default by the owner of any other parcel within a community facilities district by more than 10% above the amount that would have been levied in such Fiscal Year had 48 there never been any such delinquencies or defaults. In cases of significant delinquency, these factors may result in defaults in the payment of principal of and interest on the 2024 Bonds.
No Relationship Between Property Value and Special Tax Levy. Because the Rate and Method is not based on property value, the levy of the Special Tax will rarely, if ever, result in a uniform relationship between the value of particular parcels of Taxable Property and the amount of the levy of the Special Tax against those parcels. Thus, there will rarely, if ever, be a uniform relationship between the value of the parcels of Taxable Property and their proportionate share of debt service on the 2024 Bonds, and certainly not a direct relationship.
Factors that Could Lead to Special Tax Deficiencies. The following are some of the factors that might cause the levy of the Special Tax on any particular parcel of Taxable Property to vary from the Special Tax that might otherwise be expected:
Transfers to Governmental Entities. The number of parcels of Taxable Property could be reduced through the acquisition of Taxable Property by a governmental entity and failure of the government to pay the Special Tax based upon a claim of exemption or, in the case of the federal government or an agency thereof, immunity from taxation, thereby resulting in an increased tax burden on the remaining taxed parcels.
Property Tax Delinquencies. Failure of the owners of Taxable Property to pay property taxes (and, consequently, the Special Tax), or delays in the collection of or inability to collect the Special Tax by tax sale or foreclosure and sale of the delinquent parcels, could result in a deficiency in the collection of Special Tax revenues. See “– Tax Delinquencies” below. There is currently no history of tax levies in Improvement Area No. 1.
Delays Following Special Tax Delinquencies and Foreclosure Sales. The Fiscal Agent Agreement generally provides that the Special Tax is to be collected in the same manner as ordinary ad valorem property taxes are collected and, except as provided in the special covenant for foreclosure described in “SECURITY AND SOURCES OF PAYMENT FOR THE BONDS – Delinquent Payments of Special Tax; Covenant for Superior Court Foreclosure” and in the Act, is subject to the same penalties and the same procedure, sale and lien priority in case of delinquency as is provided for ordinary ad valorem property taxes.
Under these procedures, if taxes are unpaid for a period of five years or more, the property is deeded to the State and then is subject to sale by the County.
If sales or foreclosures of property are necessary, there could be a delay in payments to owners of the 2024 Bonds pending such sales or the prosecution of foreclosure proceedings and receipt by the City of the proceeds of sale if the 2024 Reserve Account of the Reserve Fund is depleted. See “SECURITY AND SOURCES OF PAYMENT FOR THE BONDS – Delinquent Payments of Special Tax; Covenant for Superior Court Foreclosure.” The ability of the City to collect interest and penalties specified by State law and to foreclose against properties having delinquent Special Tax installments may be limited in certain respects with regard to properties in which the Federal Deposit Insurance Corporation (the “FDIC”) has or obtains an interest. The FDIC would obtain such an interest by taking over a financial institution that has made a loan that is secured by property within Improvement Area No. 1. See “ – FDIC/Federal Government Interests in Properties” below.
Other laws generally affecting creditors’ rights or relating to judicial foreclosure may affect the ability to enforce payment of Special Taxes or the timing of enforcement of Special 49 Taxes. For example, the Soldiers and Sailors Civil Relief Act of 1940 affords protections such as a stay in enforcement of the foreclosure covenant, a six-month period after termination of military service to redeem property sold to enforce the collection of a tax or assessment and a limitation on the interest rate on the delinquent tax or assessment to persons in military service if the court concludes the ability to pay such taxes or assessments is materially affected by reason of such service.
FDIC/Federal Government Interests in Properties
General. The ability of the City to foreclose the lien of delinquent unpaid Special Tax installments may be limited with regard to properties in which the Federal Deposit Insurance Corporation (the “FDIC”), the Drug Enforcement Agency, the Internal Revenue Service, or other federal agency has or obtains an interest.
Federal courts have held that, based on the supremacy clause of the United States Constitution, in the absence of Congressional intent to the contrary, a state or local agency cannot foreclose to collect delinquent taxes or assessments if foreclosure would impair the federal government interest.
The supremacy clause of the United States Constitution reads as follows: “This Constitution, and the Laws of the United States which shall be made in Pursuance thereof; and all Treaties made, or which shall be made, under the Authority of the United States, shall be the supreme Law of the Land; and the Judges in every State shall be bound thereby, any Thing in the Constitution or Laws of any State to the contrary notwithstanding.”
This means that, unless Congress has otherwise provided, if a federal governmental entity owns a parcel that is subject to Special Taxes within Improvement Area No. 1 but does not pay taxes and assessments levied on the parcel (including Special Taxes), the applicable state and local governments cannot foreclose on the parcel to collect the delinquent taxes and assessments.
Moreover, unless Congress has otherwise provided, if the federal government has a mortgage interest in the parcel and the City wishes to foreclose on the parcel as a result of delinquent Special Taxes, the property cannot be sold at a foreclosure sale unless it can be sold for an amount sufficient to pay delinquent taxes and assessments on parity with the Special Taxes and preserve the federal government’s mortgage interest. In Rust v. Johnson (9th Circuit; 1979) 597 F.2d 174, the United States Court of Appeal, Ninth Circuit held that the Federal National Mortgage Association (“FNMA”) is a federal instrumentality for purposes of this doctrine, and not a private entity, and that, as a result, an exercise of state power over a mortgage interest held by FNMA constitutes an exercise of state power over property of the United States.
Bankruptcy and Foreclosure Delays
The payment of the Special Tax and the ability of the City to foreclose the lien of a delinquent unpaid tax, as discussed in “SECURITY AND SOURCES OF PAYMENT FOR THE BONDS – Delinquent Payments of Special Tax; Covenant for Superior Court Foreclosure,” may be limited by bankruptcy, insolvency or other laws generally affecting creditors’ rights or by the laws of the State of California relating to judicial foreclosure. The various legal opinions to be delivered concurrently with the delivery of the 2024 Bonds (including Bond Counsel’s approving legal opinion) will be qualified as to the enforceability of the various legal instruments by bankruptcy, insolvency, reorganization, moratorium and other similar laws affecting creditors’ rights, by the application of equitable principles and by the exercise of judicial discretion in appropriate cases. 50 Although bankruptcy proceedings would not cause the Special Taxes to become extinguished, bankruptcy of a property owner could result in a delay in prosecuting superior court foreclosure proceedings and could result in the possibility of delinquent Special Tax installments not being paid in full. Such a delay would increase the likelihood of a delay or default in payment of the principal of and interest on the 2024 Bonds. To the extent that property in Improvement Area No. 1 continues to be owned by a limited number of property owners, the chances are increased that the 2024 Reserve Account of the Reserve Fund established for the 2024 Bonds could be fully depleted during any such delay in obtaining payment of delinquent Special Taxes. As a result, sufficient moneys would not be available in the 2024 Reserve Account of the Reserve Fund for transfer to the Bond Fund to make up shortfalls resulting from delinquent payments of the Special Tax and thereby to pay principal of and interest on the 2024 Bonds on a timely basis.
On July 30, 1992, the United States Court of Appeals for the Ninth Circuit issued its opinion in a bankruptcy case entitled In re Glasply Marine Industries. In that case, the court held that ad valorem property taxes levied by Snohomish County in the State of Washington after the date that the property owner filed a petition for bankruptcy were not entitled to priority over a secured creditor with a prior lien on that property. The court upheld the priority of unpaid ad valorem taxes imposed before the bankruptcy petition (the “pre-petition taxes”), but unpaid taxes imposed after the filing of the bankruptcy petition (“post-petition taxes”) were declared to be unsecured “administrative expenses” of the bankruptcy estate, and were therefore held to be payable from the bankruptcy estate only after payment of all secured creditors. As a result, the secured creditor of the property was able to foreclose on the property and retain all of the proceeds of the sale except for the amount of the pre-petition taxes.
According to the court’s ruling, as administrative expenses, post-petition taxes would have to be paid, but only if the debtor had sufficient assets not subject to other perfected security interests to do so. In certain circumstances, payment of such administrative expenses may also be allowed to be deferred. Once the property is transferred out of the bankruptcy estate (through foreclosure or otherwise) it would at that time again become subject to and would secure liens for then current and future ad valorem taxes.
Glasply was controlling precedent on bankruptcy courts in the State of California for several years subsequent to the date of the Ninth Circuit’s holding. Pursuant to state law, the lien date for general ad valorem property taxes levied in the State of California is the January 1 preceding the fiscal year for which the taxes are levied. Under the Glasply holding, a bankruptcy petition filing would have prevented the lien for general ad valorem property taxes levied in fiscal years subsequent to the filing of a bankruptcy petition from attaching and becoming a lien so long as the property was a part of the estate in bankruptcy. However, the Glasply holding was for the most part subsequently rendered inoperative with respect to the imposition of a lien for and the collection of ad valorem taxes by amendments to the federal Bankruptcy Code (Title 11 U.S.C.) which were part of the Bankruptcy Reform Act of 1994 (the “Bankruptcy Reform Act”) passed by Congress during the later part of 1994. The Bankruptcy Reform Act added a provision to the automatic stay section of the Bankruptcy Code which, pursuant to Section 362(b)(18) thereof, excepts from the Bankruptcy Code’s automatic stay provisions, “the creation of a statutory lien for an ad valorem property tax imposed by . . . a political subdivision of a state, if such tax comes due after the filing of the petition” by a debtor in bankruptcy court. The effect of this provision is to continue the secured interest of ad valorem taxes on real property (i.e., post-petition taxes) in effect during the period following the filing of a bankruptcy petition, including during the period bankruptcy proceedings are pending. 51 Without further clarification by the courts or Congress, the original rationale of the Glasply holding could, however, still result in the treatment of post-petition special taxes as “administrative expenses,” rather than as tax liens secured by real property, at least during the pendency of bankruptcy proceedings. This treatment might result from the fact that, although the lien of special taxes is of record from the date of the filing of a Notice of Special Tax Lien, the actual special tax is levied annually. As noted above, special taxes have a different lien date than the lien date for general ad valorem taxes in the State of California noted above. The lien of a Mello-Roos special tax attaches upon recordation of the notice of the special tax lien, as provided for in Section 53328.3 of the Act, as opposed to the annual January 1 lien date for general ad valorem taxes. Thus, in deciding whether the original Glasply ruling is applicable to a bankruptcy proceeding involving special taxes rather than general ad valorem property taxes, a court might consider the differences in the statutory provisions for creation of the applicable tax lien (general ad valorem or special tax) in determining whether there is a basis for post petition special taxes to be entitled to a lien on the property during pending bankruptcy proceedings. If a court were to apply Glasply to eliminate the priority of the special tax lien as a secured claim against property with respect to post-petition levies of the Special Taxes made against property owners within Improvement Area No. 1 who file for bankruptcy, collections of the Special Taxes from such property owners could be reduced as the result of being treated as “administrative expenses” of the bankruptcy estate. Also, and most importantly, is the fact that the original holding in Glasply and the mitigation of that holding by the Bankruptcy Reform Act of 1994 both appear to be applicable only to general ad valorem taxes, and, therefore, the exemption from the automatic stay in Section 362(b)(18) discussed above may not be applicable to special taxes since they were not expressly mentioned or provided for in this section, nor defined to be included within the term “ad valorem taxes.”
Parity Taxes and Special Assessments; Private Debt
The City, the County and certain other public agencies are authorized by the Act to form other community facilities districts and improvement areas and, under other provisions of State law, to form special assessment districts, either or both of which could include all or a portion of the land within Improvement Area No. 1.
Property in Improvement Area No. 1 is currently subject to certain overlapping tax and assessment liens, as shown in the overlapping debt statement. Property in Improvement Area No. 1 is also subject to the special tax of two additional community facilities districts formed to fund services and known as the Amoruso Ranch Community Facilities District No. 2 (Public Services) and the City’s Community Facilities District No. 3 (Municipal Services). The property is not subject to any other special tax or assessment liens (other than the lien of the Special Tax). See “VALUE OF PROPERTY WITHIN IMPROVEMENT AREA NO. 1 – Estimated Tax Burden on Single Family Home.”
In addition, other governmental obligations may be authorized and undertaken or issued in the future, the tax, assessment or charge for which may become an obligation of one or more of the parcels of taxable property and may be secured by a lien on a parity with the lien of the Special Tax securing the 2024 Bonds. The principal of and interest on the 2024 Bonds are payable from the Special Tax authorized to be collected within Improvement Area No. 1, and payment of the Special Tax is secured by a lien on certain real property within Improvement Area No. 1. Such lien is coequal to and independent of the lien for general taxes and any other liens imposed under the Act, regardless of when they are imposed on the property in Improvement Area No. 1. The imposition of additional special taxes, assessments and general property taxes will increase the amount of independent and co-equal liens which must be satisfied in foreclosure if unpaid. The City, the County and certain other public agencies are authorized by the Act to form other community facilities districts 52 and improvement areas and, under other provisions of State law, to form special assessment districts, either or both of which could include all or a portion of the land within Improvement Area No. 1. Although the Special Taxes will generally have priority over non-governmental liens on a parcel of taxable property, regardless of whether the non-governmental liens were in existence at the time of the levy of the Special Tax or not, this result may not apply in the case of bankruptcy.
See “– Bankruptcy and Foreclosure Delays” above.
There can be no assurance that property owners within Improvement Area No. 1 will not petition for the formation of other community facilities districts and improvement areas or for a special assessment district or districts and that parity special taxes or special assessments will not be levied by the County or some other public agency to finance additional public facilities. This includes PACE assessments which homeowners can request be placed on their home for financing energy improvements. In addition to liens for special taxes or assessments to finance public improvements of benefit to land within Improvement Area No. 1, owners of property may obtain loans from banks or other private sources which loans may be secured by a lien on the parcels in Improvement Area No. 1. Such loans would increase amounts owed by the owner of such parcel with respect to development of its property in Improvement Area No. 1. However, the lien of such private loans would be subordinate to the lien of the Special Taxes.
Tax Delinquencies
Under provisions of the Act, the Special Taxes will be billed to the properties within Improvement Area No. 1 on the regular property tax bills sent to owners of such properties. Such Special Tax installments are due and payable, and bear the same penalties and interest for nonpayment, as do regular property tax installments. Special Tax installment payments cannot be made separately from property tax payments. Therefore, the unwillingness or inability of a property owner to pay regular property tax bills as evidenced by property tax delinquencies may also indicate an unwillingness or inability to make regular property tax payments and Special Tax payments in the future.
The annual Special Tax will be billed and collected in two installments payable without penalty by December 10 and April 10. In the event such Special Taxes are not timely paid, moneys available to pay debt service on the 2024 Bonds becoming due on the subsequent respective March 1 and September 1 may be insufficient, except to the extent moneys are available in the 2024 Reserve Account of the Reserve Fund.
In the event of non-payment of Special Taxes, funds in the 2024 Reserve Account of the Reserve Fund, if available, may be used to pay principal of and interest on the 2024 Bonds. If funds in the 2024 Reserve Account of the Reserve Fund for the 2024 Bonds are depleted, the funds can be replenished from the proceeds of the levy and collection of the Special Tax that are in excess of the amount required to pay all amounts to be paid to the 2024 Bond holders pursuant to the Fiscal Agent Agreement. However, no replenishment from the proceeds of a Special Tax levy can occur as long as the proceeds that are collected from the levy of the Special Tax against property within Improvement Area No. 1 at the maximum Special Tax rates, together with other available funds, remains insufficient to pay all such amounts. Thus it is possible that the 2024 Reserve Account of the Reserve Fund will be depleted and not be replenished by the levy of the Special Tax.
See “SECURITY AND SOURCES OF PAYMENT FOR THE BONDS – Delinquent Payments of Special Tax; Covenant for Superior Court Foreclosure” for a discussion of the provisions which apply, and procedures which the City is obligated to follow, in the event of delinquency in the payment of Special Taxes. See also “SECURITY AND SOURCES OF PAYMENT FOR THE 53 BONDS – Special Tax Methodology” for a discussion of a limitation imposed by the Act applicable to Special Tax increases on residential property.
No Acceleration Provisions
The 2024 Bonds do not contain a provision allowing for the acceleration of the 2024 Bonds in the event of a payment default or other default under the terms of the 2024 Bonds or the Fiscal Agent Agreement. Under the Fiscal Agent Agreement, a 2024 Bond holder is given the right for the equal benefit and protection of all 2024 Bond holders similarly situated to pursue certain remedies.
So long as the 2024 Bonds are in book-entry form, DTC will be the sole 2024 Bond holder and will be entitled to exercise all rights and remedies of 2024 Bond holders.
Ballot Initiatives
From time to time, initiative measures qualify for the State ballot pursuant to the State’s constitutional initiative process, and those measures could be adopted by California voters. The adoption of any such initiative might place limitations on the ability of the State, the City, the County or other local districts to increase revenues or to increase appropriations or on the ability of the landowners to complete the development of Improvement Area No. 1. See “–Property Values and Property Development – Land Development” above. See also “– Voter Initiatives” below.
Voter Initiatives
Under the California Constitution, the power of initiative is reserved to the voters for the purpose of enacting statutes and constitutional amendments. Since 1978, the voters have exercised this power through the adoption of Proposition 13 and similar measures, including Proposition 218, which was approved in the general election held on November 5, 1996, and Proposition 26, which was approved on November 2, 2010.
Any such initiative may affect the collection of fees, taxes and other types of revenue by local agencies in the State, including the Special Taxes levied within Improvement Area No. 1. Subject to overriding federal constitutional principles, such collection may be materially and adversely affected by voter-approved initiatives, possibly to the extent of creating cash-flow problems in the payment of outstanding obligations such as the 2024 Bonds.
Proposition 218 – Voter Approval for Local Government Taxes—Limitation on Fees, Assessments, and Charges—Initiative Constitutional Amendment, added Articles XIIIC and XIIID to the California Constitution, imposing certain vote requirements and other limitations on the imposition of new or increased taxes, assessments and property-related fees and charges.
On November 2, 2010, California voters approved Proposition 26, entitled the “Supermajority Vote to Pass New Taxes and Fees Act.” Section 1 of Proposition 26 declares that Proposition 26 is intended to limit the ability of the State Legislature and local government to circumvent existing restrictions on increasing taxes by defining the new or expanded taxes as “fees.” Proposition 26 amended Articles XIIIA and XIIIC of the State Constitution. The amendments to Article XIIIA limit the ability of the State Legislature to impose higher taxes (as defined in Proposition 26) without a twothirds vote of the Legislature. Article XIIIC requires that all new local taxes be submitted to the electorate before they become effective. Taxes for general governmental purposes require a majority vote and taxes for specific purposes (“special taxes”) require a two-thirds vote. 54 Similar to Proposition 218 and Proposition 26, the Taxpayer Protection and Government Accountability Act (“Initiative 1935”) was proposed by a citizens group as a measure to be placed on the November 2024 statewide election and if passed would have, among other things, amend the State Constitution to impose heightened barriers for State and local governments to impose taxes and fees. Initiative 1935 also provided that any tax or fee imposed after January 1, 2022 not in accordance with such provisions is void 12 months after the effective date of Initiative 1935, unless subsequently reenacted in accordance with its terms. At the request of the Governor of California and the State Legislature, the California Supreme Court agreed to consider whether Initiative 1935 should be barred from appearing on the ballot as an unlawful revision of the State Constitution, given its potential wide-ranging impact on the ability of the State and local governments to fund their operations. In June 2024 the Supreme Court barred the measure from appearing on the November ballot.
Case Law Related to the Mello-Roos Act
On August 1, 2014, the California Court of Appeal, Fourth Appellate District, issued its opinion in City of San Diego v. Melvin Shapiro, et al. (D063997). The case involved a Convention Center Facilities District (the “CCFD”) established by the City of San Diego. The CCFD is a financing district established under the City’s charter (the “Charter”) and was intended to function much like a community facilities district established under the Mello-Roos Act. The CCFD was comprised of all of the real property in the entire City. However, the CCFD special tax was to be levied only on properties in the CCFD that were improved with a hotel.
At the election to authorize the CCFD special tax, the CCFD proceedings limited the electorate to owners of hotel properties and lessees of real property owned by a governmental entity on which a hotel was located. Registered voters in the City of San Diego were not permitted to vote.
This definition of the qualified electors of the CCFD was based on Section 53326(c) of the MelloRoos Act, which generally provides that, if a special tax will not be apportioned in any tax year on residential property, the legislative body may provide that the vote shall be by the landowners of the proposed community facilities district whose property would be subject to the special tax.
The San Diego Court held that the CCFD special tax election did not comply with the City’s Charter and with applicable provisions of the California Constitution -- specifically Article XIIIA, section 4 (“Cities, Counties and special districts, by a two-thirds vote of the qualified electors of such district, may impose special taxes on such district….”) and Article XIIIC, section 2(d) (“No local government may impose, extend, or increase any special tax unless and until that tax is submitted to the electorate and approved by a two-thirds vote.”) -- because the electors in the CCFD election should have been the registered voters residing within the CCFD (the boundaries of which were coterminous with the boundaries of the City of San Diego).
As to the District (including Improvement Area No. 1), there were no registered voters within the District (including Improvement Area No. 1) at the time of the election to authorize the Special Taxes. Significantly, the San Diego Court expressly stated that it was not addressing the validity of a landowner election to impose special taxes on residential property pursuant to the Mello-Roos Act in situations where there are fewer than 12 registered voters. Therefore, by its terms, the San Diego Court’s holding does not apply to the special tax election held for Improvement Area No. 1.
Moreover, Sections 53341 and 53359 of the Act establish a limited period of time in which special taxes levied under the Mello-Roos Act may be challenged by a third party:
55 53341. Any action or proceeding to attack, review, set aside, void, or annul the levy of a special tax or an increase in a special tax pursuant to [the Mello-Roos Act] shall be commenced within 30 days after the special tax is approved by the voters…. 53359. An action to determine the validity of bonds issued pursuant to [the MelloRoos Act] or the validity of any special taxes levied pursuant to [the Mello-Roos Act] … shall …. be commenced within 30 days after the voters approve the issuance of the bonds or the special tax …
Section 53326(b) of the Mello-Roos Act defines the authorized voters for an election in which the special taxes will be levied on residential property: “Except as otherwise provided in subdivision (c), if at least 12 persons, who need not necessarily be the same 12 persons, have been registered to vote within the territory of the proposed community facilities district for each of the 90 days preceding the close of the protest hearing, the vote shall be by the registered voters of the proposed district, with each voter having one vote. Otherwise, the vote shall be by the landowners of the proposed district and each person who is the owner of land at the close of the protest hearing, or the authorized representative thereof, shall have one vote for each acre or portion of an acre of land that he or she owns within the proposed community facilities district not exempt from the special tax….”
Pursuant to Sections 53341 and 53359 of the Mello-Roos Act, the statute of limitations period to challenge the validity of the special tax has expired. Because the San Diego Court expressly stated that it did not consider the facts presented by Improvement Area No. 1 and because the period for challenging the Special Taxes has passed, the City believes the Special Taxes are valid and cannot be challenged.
Exempt Properties
Certain properties are exempt from the Special Tax in accordance with the Rate and Method and the Act, which provides that properties or entities of the state, federal or local government are exempt from the Special Tax; provided, however, that property within the District acquired by a public entity through a negotiated transaction or by gift or devise, which is not otherwise exempt from the Special Tax, will continue to be subject to the Special Tax.
In addition, although the Act provides that if property subject to the Special Tax is acquired by a public entity through eminent domain proceedings, the obligation to pay the Special Tax with respect to that property is to be treated as if it were a special assessment, the constitutionality and operation of these provisions of the Act have not been tested, meaning that such property could become exempt from the Special Tax. The Act further provides that no other properties or entities are exempt from the Special Tax unless the properties or entities are expressly exempted in a resolution of consideration to levy a new special tax or to alter the rate or method of apportionment of an existing special tax.
Changes in Tax Law
H.R. 1 of the 115th U.S. Congress, known as the “Tax Cuts and Jobs Act,” was enacted into law on December 22, 2017 (the “Tax Act”). The Tax Act makes significant changes to many aspects of the Code that could have an impact on future property development. The Tax Act reduces the amount of mortgage interest expense and state local income tax and property tax expense that individuals may deduct from their gross income for federal income tax purposes, which could increase the cost of home ownership within Improvement Area No. 1 and could adversely affect the 56 sale of homes by merchant builders that purchase lots from the Master Developer. However, the City cannot predict the effect that the Tax Act may have on the cost of home ownership or the price of homes in Improvement Area No. 1, the rate at which homes in Improvement Area No. 1 are sold to individual homeowners, or the ability or willingness of homeowners to pay special taxes or property taxes on Taxable Property within Improvement Area No. 1. The appraised values do not take into account any of the potential impacts of the Tax Act on home values or home sales in Improvement Area No. 1.
Pandemic Diseases
In recent years, public health authorities have warned of threats posed by outbreaks of disease and other public health threats. Pandemic diseases arising in the future could have significant adverse health and financial impacts throughout the world, leading to loss of jobs and personal financial hardships, and/or actions by federal, State and local governmental authorities to contain or mitigate the effects of an outbreak.
Taxpayer assistance measures may include deferral of due dates of property taxes, which was an assistance program during the COVID-19 pandemic, and with or without a deferral some taxpayers may be unable to make their property and Special Tax payments. No assurance can be given that the property tax payment dates will not be deferred in the future, which may cause a delay in the receipt of Special Taxes. In addition, home values may be affected by a reduction in demand stemming from personal finances, or general widespread economic circumstances resulting from pandemic diseases.
Cyber Security
The City, like many other public and private entities, relies on computer and other digital networks and systems to conduct its operations. As a recipient and provider of personal, private or other sensitive electronic information, the City is potentially subject to multiple cyber threats, including without limitation hacking, viruses, ransomware, malware and other attacks. No assurance can be given that the City’s efforts to manage cyber threats and attacks will be successful in all cases, or that any such attack will not materially impact the operations or finances of the City, or the administration of the 2024 Bonds. The City is also reliant on other entities and service providers in connection with the administration of the 2024 Bonds, including without limitation the County tax collector for the levy and collection of Special Taxes, the Fiscal Agent, and the dissemination agent.
No assurance can be given that the City and these other entities will not be affected by cyber threats and attacks in a manner that may affect the Bond owners.
Potential Early Redemption of Bonds from Prepayments
Property owners within Improvement Area No. 1, including the Master Developer, the Merchant Builders and individual homeowners, are permitted to prepay their Special Tax obligation at any time. Such prepayments could also be made from the proceeds of bonds issued by or on behalf of an overlapping special assessment district or community facilities district. Such prepayments will result in a redemption of the Bonds on the interest payment date for which timely notice may be given under the Fiscal Agent Agreement following the receipt of the prepayment. The resulting redemption of Bonds that were purchased at a price greater than par could reduce the otherwise expected yield on such Bonds.
57 CONSTITUTIONAL LIMITATIONS ON TAXATION AND APPROPRIATIONS Article XIIIA of the California Constitution, commonly known as “Proposition 13,” provides that each county will levy the maximum ad valorem property tax permitted by Proposition 13 and will distribute the proceeds to local agencies in accordance with an allocation formula based in part on pre-Proposition 13 ad valorem property tax rates levied by local agencies.
Article XIIIA limits the maximum ad valorem tax on real property to 1% of “full cash value,” which is defined as the County Assessor’s valuation of real property as shown on the 1975-76 tax bill under full cash value, or, thereafter, the appraised value of real property when purchased, newly constructed, or a change in ownership has occurred after the 1975 assessment. The full cash value may be adjusted annually to reflect increases of no more than 2% per year or decreases in the consumer price index or comparable local data, or declining property value caused by damage, destruction or other factors.
Article XIIIA exempts from the 1% tax limitation any taxes to repay indebtedness approved by the voters prior to July 1, 1978, and requires a vote of two-thirds of the qualified electorate to impose Special Taxes or any additional ad valorem, sales, or transaction taxes on real property. In addition, Article XIIIA requires the approval of two-thirds of all members of the State Legislature to change any State laws resulting in increased tax revenues. On June 3, 1986, California voters approved an amendment to Article XIIIA of the California Constitution to allow local governments and school districts to raise their property tax rates above the constitutionally mandated 1% ceiling for the purpose of paying off certain new general obligation debt issued for the acquisition or improvement of real property and approved by two-thirds of the votes cast by the qualified electorate.
If any such voter-approved debt is issued, it may be on a parity with the lien of the Special Tax on the parcels within Improvement Area No. 1.
State and local government agencies in the State, and the State itself are subject to annual appropriation limits, imposed by Article XIIIB of the State Constitution. Article XIIIB prohibits government agencies and the State from spending “appropriations subject to limitation” in excess of the appropriations limits imposed. “Appropriations subject to limitation” are authorizations to spend “proceeds of taxes,” which consist of tax revenues, certain state subventions and certain other funds, including proceeds from regulatory licenses, user charges or other fees to the extent that such proceeds exceed the cost reasonably borne by such entity in providing the regulation, product or service. No limit is imposed on appropriations of funds which are not “proceeds of taxes” such as debt service on indebtedness existing or authorized before January 1, 1979, or subsequently authorized by the voters, appropriations required to comply with mandates of courts or the federal government, reasonable user charges or fees and certain other non-tax funds.
CONTINUING DISCLOSURE
The City
The City has covenanted for the benefit of owners of the 2024 Bonds to provide certain financial information and operating data relating to Improvement Area No. 1 by not later than nine months after the end of the City’s fiscal year (presently June 30) in each year (the “City Annual Report”) commencing with its report for the 2023-24 fiscal year (due April 1, 2025) and to provide notices of the occurrence of certain enumerated events. 58 The City Annual Report and notices of listed events will be filed with the Municipal Securities Rulemaking Board. The covenants of the City have been made in order to assist the Underwriter in complying with Securities Exchange Commission Rule 15c2-12(b)(5) (the “Rule”). The specific nature of the information to be contained in the Annual Report or the notices of listed events by the City is summarized in “APPENDIX E – FORM OF CONTINUING DISCLOSURE UNDERTAKINGS.” The City believes it currently is in material compliance with all of its continuing disclosure undertakings for the last five years. Notwithstanding the foregoing, in the last five years:
(1) The Annual Report for Fiscal Year 2019-20 for one series of the City’s outstanding bonds did not initially fulfill all content requirements; a remedial filing was done approximately 3 months later.
(2) For its Annual Report for Fiscal Year 2021-22, while the City filed unaudited financial statements and then its audited financial statements when available, the unaudited financial statements were not timely filed with respect to certain bond issues.
(3) The City has not in a timely manner filed all significant event notices of changes in the ratings of certain then-outstanding obligations resulting from changes in ratings to the bond insurers who insured such obligations or the underlying rates for such obligations. However, the City has submitted all undisclosed significant event notices of changes in ratings occurring during the last five years on all currently outstanding obligations.
The City believes it has made corrective filings to address the known instances during the last five years of past delayed or failure to file annual reports, omissions of required information and/or rating changes to be filed under its prior continuing disclosure undertakings.
The Merchant Builders
General. Each of the Merchant Builders has voluntarily covenanted for the benefit of owners of the 2024 Bonds to provide certain information and operating data relating to the property it or its affiliates owns or is under option to acquire in Improvement Area No. 1 by not later than May 1st and November 1st of each year, beginning with the report due November 1, 2024 (the “Merchant Builder Periodic Reports”) and to provide notices of the occurrence of certain enumerated events. The obligation of the Merchant Builders to provide such information is in effect until such time as a Merchant Builder (and its affiliates) no longer own or is under option to acquire property in Improvement Area No. 1 collectively responsible for 20% or more of the Special Taxes.
D.R. Horton Continuing Disclosure Compliance. D.R. Horton’s Sacramento Division is the division which will be responsible for complying with its obligations under its Developer Continuing Disclosure Certificate. D.R. Horton has advised the City that, based on a review of prior continuing disclosure obligations in Northern California, encompassing D.R. Horton’s Sacramento and Bay Area Divisions, D.R. Horton has not failed to comply in any material respect with any previous undertaking by it to provide periodic continuing disclosure reports or notice of listed events with respect to community facilities district or assessment district financings in Northern California within the past five years.
Richmond American Continuing Disclosure Compliance. Richmond American’s Northern California division will be responsible for compliance with its obligations under the 59 Richmond American continuing disclosure certificate. Richmond American has advised the City that, except as described in the following paragraph, based on a review of prior continuing disclosure obligations by its Northern California division Richmond American has not failed to comply in any material respect with any previous undertaking by it to provide periodic continuing disclosure reports or notice of listed events with respect to community facilities district or assessment district bond issues in Northern California within the past five years.
However, Richmond American’s Riverside division was approximately ten days late in filing its semiannual report due on March 31, 2019 with respect to the $17,580,000 Community Facilities District No. 2011-1 of the Menifee Union School District Improvement Area No. 3 2018 Special Tax Bonds, which Richmond American submitted to the dissemination agent on March 28, 2019 but was not filed by the dissemination agent until April 10, 2019. Identification of the above-described events does not constitute a representation by Richmond American that such events were material.
UNDERWRITING
The 2024 Bonds were purchased through negotiation by Piper Sandler & Co., as underwriter (the “Underwriter”). The Underwriter agreed to purchase the 2024 Bonds at a price of $_____________ (which is equal to the par amount of the 2024 Bonds, plus/less an original issue premium/discount of $_____________ and less the Underwriter’s discount of $_____________).
The initial public offering prices set forth on the cover page hereof may be changed by the Underwriter. The Underwriter may offer and sell the 2024 Bonds to certain dealers and others at a price lower than the public offering prices set forth on the cover page hereof.
MUNICIPAL ADVISOR
The City has retained Hilltop Securities Inc., Encino, California, as registered municipal advisor (the “Municipal Advisor”) in connection with the issuance of the 2024 Bonds. The Municipal Advisor is not obligated to undertake, and has not undertaken to make, an independent verification or assume responsibility for the accuracy, completeness, or fairness of the information contained in this Official Statement. The fees of the Municipal Advisor are contingent upon the sale and delivery of the 2024 Bonds.
LEGAL OPINION
The validity of the 2024 Bonds and certain other legal matters are subject to the approving opinion of Jones Hall, a Professional Law Corporation, Bond Counsel. A complete copy of the proposed form of Bond Counsel opinion is contained in APPENDIX D to this Official Statement, and the final opinion will be made available to registered owners of the 2024 Bonds at the time of delivery.
The fees of Bond Counsel are contingent upon the sale and delivery of the 2024 Bonds. 60 TAX MATTERS
Federal Tax Status. In the opinion of Jones Hall, A Professional Law Corporation, San Francisco, California, Bond Counsel, subject, however to the qualifications set forth below, under existing law, the interest on the 2024 Bonds is excluded from gross income for federal income tax purposes and such interest is not an item of tax preference for purposes of the federal alternative minimum tax. Interest on the 2024 Bonds may be subject to the corporate alternative minimum tax.
The opinions set forth in the preceding paragraph are subject to the condition that the City comply with all requirements of the Internal Revenue Code of 1986, as amended (the “Tax Code”) relating to the exclusion from gross income for federal income tax purposes of interest on obligations such as the 2024 Bonds. The City has made certain representations and covenants in order to comply with each such requirement. Inaccuracy of those representations, or failure to comply with certain of those covenants, may cause the inclusion of such interest in gross income for federal income tax purposes, which may be retroactive to the date of issuance of the 2024 Bonds.
Tax Treatment of Original Issue Discount and Premium. If the initial offering price to the public at which a 2024 Bond is sold is less than the amount payable at maturity thereof, then such difference constitutes “original issue discount” for purposes of federal income taxes and State of California personal income taxes. If the initial offering price to the public at which a 2024 Bond is sold is greater than the amount payable at maturity thereof, then such difference constitutes “original issue premium” for purposes of federal income taxes and State of California personal income taxes.
De minimis original issue discount and original issue premium are disregarded.
Under the Tax Code, original issue discount is treated as interest excluded from federal gross income and exempt from State of California personal income taxes to the extent properly allocable to each owner thereof subject to the limitations described in the first paragraph of this section. The original issue discount accrues over the term to maturity of the 2024 Bond on the basis of a constant interest rate compounded on each interest or principal payment date (with straight-line interpolations between compounding dates). The amount of original issue discount accruing during each period is added to the adjusted basis of such 2024 Bonds to determine taxable gain upon disposition (including sale, redemption, or payment on maturity) of such 2024 Bond. The Tax Code contains certain provisions relating to the accrual of original issue discount in the case of purchasers of the 2024 Bonds who purchase the 2024 Bonds after the initial offering of a substantial amount of such maturity. Owners of such 2024 Bonds should consult their own tax advisors with respect to the tax consequences of ownership of 2024 Bonds with original issue discount, including the treatment of purchasers who do not purchase in the original offering, the allowance of a deduction for any loss on a sale or other disposition, and the treatment of accrued original issue discount on such 2024 Bonds under federal individual alternative minimum taxes.
Under the Tax Code, original issue premium is amortized on an annual basis over the term of the 2024 Bond (said term being the shorter of the 2024 Bond’s maturity date or its call date). The amount of original issue premium amortized each year reduces the adjusted basis of the owner of the 2024 Bond for purposes of determining taxable gain or loss upon disposition. The amount of original issue premium on a 2024 Bond is amortized each year over the term to maturity of the 2024 Bond on the basis of a constant interest rate compounded on each interest or principal payment date (with straight-line interpolations between compounding dates). Amortized 2024 Bond premium is not deductible for federal income tax purposes. Owners of premium 2024 Bonds, including purchasers who do not purchase in the original offering, should consult their own tax advisors with respect to State of California personal income tax and federal income tax consequences of owning such 2024 Bonds.
61 California Tax Status. In the further opinion of Bond Counsel, interest on the 2024 Bonds is exempt from California personal income taxes.
Other Tax Considerations. Current and future legislative proposals, if enacted into law, clarification of the Tax Code or court decisions may cause interest on the 2024 Bonds to be subject, directly or indirectly, to federal income taxation or to be subject to or exempted from state income taxation, or otherwise prevent beneficial owners from realizing the full current benefit of the tax status of such interest. The introduction or enactment of any such legislative proposals, clarification of the Tax Code or court decisions may also affect the market price for, or marketability of, the 2024 Bonds.
It cannot be predicted whether or in what form any such proposal might be enacted or whether, if enacted, such legislation would apply to bonds issued prior to enactment.
The opinions expressed by Bond Counsel are based upon existing legislation and regulations as interpreted by relevant judicial and regulatory authorities as of the date of such opinion, and Bond Counsel has expressed no opinion with respect to any proposed legislation or as to the tax treatment of interest on the 2024 Bonds, or as to the consequences of owning or receiving interest on the 2024 Bonds, as of any future date. Prospective purchasers of the 2024 Bonds should consult their own tax advisors regarding any pending or proposed federal or state tax legislation, regulations or litigation, as to which Bond Counsel expresses no opinion.
Owners of the 2024 Bonds should also be aware that the ownership or disposition of, or the accrual or receipt of interest on, the 2024 Bonds may have federal or state tax consequences other than as described above. Other than as expressly described above, Bond Counsel expresses no opinion regarding other federal or state tax consequences arising with respect to the 2024 Bonds, the ownership, sale or disposition of the 2024 Bonds, or the amount, accrual or receipt of interest on the 2024 Bonds.
NO RATINGS
The City has not applied to a rating agency for the assignment of a rating to the 2024 Bonds and does not contemplate applying for a rating.
NO LITIGATION
At the time of delivery of and payment for the 2024 Bonds, the City Attorney will deliver his opinion that to the best of its knowledge there is no action, suit, proceeding, inquiry or investigation at law or in equity before or by any court or regulatory agency pending against the City affecting its existence or the titles of its officers to office or seeking to restrain or to enjoin the issuance, sale or delivery of the 2024 Bonds, the application of the proceeds thereof in accordance with the Fiscal Agent Agreement, or the collection or application of the Special Tax to pay the principal of and interest on the 2024 Bonds, or in any way contesting or affecting the validity or enforceability of the 2024 Bonds, the Fiscal Agent Agreement or any action of the City contemplated by any of said documents, or in any way contesting the completeness or accuracy of this Official Statement or any amendment or supplement thereto, or contesting the powers of the City or its authority with respect to the 2024 Bonds or any action of the City contemplated by any of said documents.
EXECUTION
62 The execution and delivery of this Official Statement by the City has been duly authorized by the City Council of the City, as the legislative body of the District.
CITY OF ROSEVILLE
By:
Dennis Kauffman
Assistant City Manager/
Chief Financial Officer
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APPENDIX A
RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX
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APPENDIX B
THE APPRAISAL
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APPENDIX C
THE CITY OF ROSEVILLE AND PLACER COUNTY
The District is located in the City of Roseville (the “City”), which is located in southwestern Placer County (the “County”), California (the “State”). Certain financial and economic data for the City, County and State are presented in this appendix for information purposes only. The 2024 Bonds are not a debt or obligation of the City, County or State, but are a limited obligation of the City, secured solely by the Special Tax Revenues and other amounts pledged under the Fiscal Agent Agreement, all as described in more detail in this Official Statement.
General
The City is located in the County, which is located in the Sacramento Valley near the foothills of the Sierra Nevada mountain range, about 16 miles northeast of Sacramento and 110 miles east of San Francisco. The City presently occupies 43 square miles in the southwestern part of the County and is the largest city in the County as well as the residential and business center of the County. It is bordered by Sacramento County to the south, the City of Rocklin to the north and un-incorporated Placer County to the east and west. The estimated population of the City as of January 2024 was approximately 154,329.
The City has warm summers typical of central California, with an average July temperature of 77 degrees. Winter temperatures are moderate; the average January temperature is 46 degrees. The temperature drops below freezing an average of eight days per year. Rainfall averages 20 inches annually and falls mostly during the winter.
The City is predominately comprised of residential housing, small and large businesses, as well as numerous retail centers, the latter of which play a vital role in the economy of the City and contribute significantly to City and County sales tax receipts. The City has the thirteenth highest retail sales of all cities in the State, and the City is considered a regional shopping destination. The Westfield Galleria at Roseville is the main shopping center in the City and the second largest shopping mall in Northern California. Across from the Westfield Galleria lies the “Fountains at Roseville,” a 330,000 square foot retail center, containing additional stores and several recreation centers. Plans call for future construction of hotel, additional retail, and office buildings in connection with the Fountains at Roseville project. In addition to the Westfield Galleria and Fountains at Roseville, the City has many shopping plazas surrounding the Westfield Galleria and the Douglas Boulevard financial corridor. The City is also home to one of the largest auto malls in the United States and a popular water park, Roseville Golfland-SunSplash.
Municipal Government
The City was incorporated on April 10, 1909 and is a charter city. The City operates under the council-manager form of government, with a five-member City Council elected by district for staggered four-year terms.
City services include, among others, police and fire protection, library services, street maintenance, and parks and recreation. The City also owns two golf courses and provides its own electricity, water, sewer and refuse services to its citizens.
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Population
The following table sets forth population estimates for the City, County and State for the past five years.
POPULATION ESTIMATES
City, County and State
Calendar Years 2020 through 2024, as of January 1
Year
City of
Roseville Placer County State of California
2020 147,104 404,739 39,538,223
2021 148,506 406,443 39,327,868
2022 150,626 407,539 39,114,785
2023 152,726 410,085 39,061,058
2024 154,329 412,844 39,128,162
Source: California State Department of Finance.
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Effective Buying Income
Effective buying income (“EBI”) is designated as personal income less personal tax and non-tax payments. Personal income is the aggregate of wages and salaries, other labor income (such as employer contributions to private pension funds), proprietor’s income, rental income (which includes imputed rental income of owner-occupants of non-farm dwellings), dividends paid by corporations, personal interest income from all sources, and transfer payments (such as pensions and welfare assistance). Deducted from this total are personal taxes (federal, state and local), non-tax payments (such as fines, fees, penalties), and personal contributions for social insurance. Effective buying income is a bulk measure of market potential. It indicates the general ability to buy and is essential in comparing, selecting and grouping markets on that basis. The following table demonstrates the growth in annual estimated EBI for the City, the County, the State and the United States.
EFFECTIVE BUYING INCOME (EBI)
City, County, State and United States
As of January 1, 2020 through 2024
Year Area
Total Effective
Buying Income
(000’s Omitted)
Median
Household
Effective Buying
Income
2020 City of Roseville $4,834,974 $72,395
Placer County 14,333,583 72,431
California 1,243,564,816 65,870
United States 9,487,165,436 55,303
2021 City of Roseville $4,126,395 $66,668
Placer County 12,122,101 65,269
California 1,036,142,723 55,681
United States 8,132,748,136 48,043
2022 City of Roseville $6,165,433 $87,539
Placer County 18,491,490 88,051
California 1,452,426,153 77,058
United States 11,208,582,541 64,448
2023 City of Roseville $6,996,310 $92,853
Placer County 19,349,979 91,862
California 1,461,799,662 77,175
United States 11,454,846,397 65,326
2024 City of Roseville $7,496,807 $95,863
Placer County 20,125,715 93,505
California 1,510,708,521 80,973
United States 11,987,185,826 67,876
Source: Claritas, LLC.
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Employment and Industry
The unemployment rate in the Sacramento--Roseville--Arden-Arcade MSA was 4.5 percent in April 2024, down from a revised 4.9 percent in March 2024, and above the year-ago estimate of 3.7 percent. This compares with an unadjusted unemployment rate of 4.8 percent for California and 3.5 percent for the nation during the same period. The unemployment rate was 4.2 percent in El Dorado County, 3.9 percent in Placer County, 4.5 percent in Sacramento County, and 5.1 percent in Yolo County
The following table summarizes the civilian labor force, employment and unemployment, as well as employment by industry, in the Sacramento--Arden-Arcade--Roseville MSA for the years 2019 through 2023.
CIVILIAN LABOR FORCE, EMPLOYMENT AND UNEMPLOYMENT
Sacramento Arden Arcade Roseville Metropolitan Statistical Area (El Dorado, Placer, Sacramento, and Yolo Counties)
Civilian Labor Force, Employment and Unemployment
Annual Averages
2019 2020 2021 2022 2023
Civilian Labor Force (1) 1,099,300 1,093,500 1,105,400 1,112,100 1,129,200 Employment 1,059,200 996,600 1,034,400 1,069,700 1,080,500 Unemployment 40,100 96,900 71,000 42,400 48,600
Unemployment Rate 3.7% 8.9% 6.4% 3.8% 4.3%
Wage and Salary Employment (2)
Agriculture 8,700 8,300 9,000 8,600 9,100
Mining and Logging 500 500 500 500 500
Construction 69,400 70,200 74,900 77,100 74,700
Manufacturing 36,800 36,100 37,700 40,600 40,500
Wholesale Trade 28,600 26,600 26,900 28,300 28,500
Retail Trade 100,500 95,100 100,600 100,300 99,000
Transportation, Warehousing and
Utilities
32,200 34,300 37,500 40,800 41,600
Information 11,900 10,200 10,100 10,500 9,900
Finance and Insurance 35,200 34,800 34,100 33,000 30,500 Real Estate and Rental and Leasing 17,300 16,900 17,700 18,800 18,400 Professional and Business Services 137,200 132,600 137,200 139,700 134,400 Educational and Health Services 166,600 164,000 168,800 175,600 188,700 Leisure and Hospitality 109,600 83,900 93,600 108,700 112,500 Other Services 35,400 31,000 33,300 36,100 38,300
Federal Government 14,200 14,800 14,500 14,400 14,500
State Government 121,900 121,700 127,300 129,800 134,400 Local Government 105,300 98,900 98,400 102,700 107,400
Total, All Industries (3) 1,031,200 979,800 1,021,900 1,065,400 1,083,000
(1) Labor force data is by place of residence; includes self-employed individuals, unpaid family workers, household domestic workers, and workers on strike.
(2) Industry employment is by place of work; excludes self-employed individuals, unpaid family workers, household domestic workers, and workers on strike.
(3) Totals may not add due to rounding.
Source: State of California Employment Development Department C-5
Major Employers
The following table lists the major employers within the County, in alphabetical order.
MAJOR EMPLOYERS
Placer County
(In Alphabetical Order)
June 2024
Employer Name Location Industry
Backyard Bar & BBQ Truckee Restaurants
City of Roseville Roseville Alternative Fuels
City of Roseville California Roseville City Government-Executive Offices Costco Wholesale Roseville Wholesale Clubs
Golfland Sunsplash Roseville Roseville Golf Courses-Miniature K-Love Christian Music Rocklin Radio Stations & Broadcasting Companies Kaiser Permanente Roseville MD Roseville Hospitals
Keller Williams Northeast Roseville Real Estate
Northstar California Truckee Resorts
Oracle Rocklin Computer Software-Manufacturers
Palisades Tahoe At Alpine Mdws Alpine Meadows Skiing Centers & Resorts Placer County Food Stamps Auburn County Government-Social/Human Resources Placer County Sheriff Auburn Government Offices-County
Placer County Sheriff Dept Tahoe City Government Offices-County Pride Industries Roseville Employment Agencies & Opportunities Resort At Squaw Creek Olympic Valley Hotels & Motels
Roseville Toyota Roseville Automobile Dealers-New Cars
Sheriff's Training Auburn Government Offices-County
Sierra Joint Cmnty Clg Dist Rocklin School Districts
Sutter Auburn Faith Hospital Auburn Hospitals
Sutter Roseville Med Ctr Fndtn Roseville Hospitals
Tasq Technology Roseville Importers (whls)
Thunder Valley Casino Resort Lincoln Casinos
Union Pacific Railroad Co Roseville Railroads
Walmart Supercenter Roseville Department Stores
Source: State of California Employment Development Department, extracted from the America’s Labor Market Information System (ALMIS) Employer Database, 2024 2nd Edition.
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Principal Employers
The following table shows the principal employers in the City, as shown in the City’s Comprehensive Annual Financial Report for fiscal year ending June 30, 2023.
PRINCIPAL EMPLOYERS
City of Roseville
As of June 30, 2023
Employer
Number of
Employees
The Kaiser Permanente Medical Group & Foundation Group 5,760 Sutter Roseville Medical Group 5,080
TopGolf 1,970
City of Roseville 1,620
Adventist Health 1,620
Roseville City School District 1,240
Union Pacific Railroad Company 1,150
Roseville Joint Union High School 1,084
Flexcare LLC 1,000
Penumbra 810
Hewlett-Packard 630
Total – Top Ten 20,814
Total City-Wide Employment 80,543
Source: City of Roseville Comprehensive Annual Financial Report for Fiscal Year 2022-23.
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Construction Permits
The following table shows valuations of residential and non-residential building permits issued for calendar years 2018 through 2022. Annual figures are not yet available for 2023.
BUILDING PERMIT VALUATION
City of Roseville
(Valuation in Thousands of Dollars)
2018 2019 2020 2021 2022
Permit Valuation
New Single-family $220,813.8 $265,615.3 $322,748.5 $467,676.3 $420,490.6 New Multi-family 0.0 6,855.8 46,469.0 0.0 1,552.1
Res. Alterations/Additions 8,598.7 16,133.8 5,126.3 39,648.3 5,529.1 Total Residential $229,412.5 $288,604.9 $374,343.8 $507,324.6 $427,571.8 New Commercial $21,072.5 $24,136.7 $23,230.8 $16,627.7 $40,882.5 New Industrial 0.0 0.0 0.0 0.0 0.0
New Other 11,541.4 9,358.1 12,610.6 12,351.9 7,312.1
Com. Alterations/Additions 38,098.5 46,155.6 24,553.9 29,192.0 42,938.9 Total Nonresidential $70,712.4 $79,650.40 $60,395.3 $58,171.6 $91,133.5 New Dwelling Units
Single-Family 806 1,001 1,226 1,860 1,618
Multiple Family 0 65 372 0 18
Total New Dwelling Units 806 1,066 1,598 1860 1,636
Source: Construction Industry Research Board, Building Permit Summary.
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The County’s 2022-23 assessment roll totaled $104,323,515,275 as compared to the prior year’s assessment roll of $97,541,982,154, which reflected a 6.95% increase this year. These numbers over the last two years contrast with the real estate decline years of 2008 and after, where the County assessment roll experienced declines.
The following table shows residential and non-residential building permits issued within the County for calendar years 2018 through 2022. Annual figures are not yet available for 2023.
BUILDING PERMIT VALUATION
County of Placer
(Valuation in Thousands of Dollars)
2018 2019 2020 2021 2022
Permit Valuation
New Single-family $696,737.4 $693,647.7 $827,822.1 $1,323,114.6 $1,193,148.4 New Multi-family 23,384.7 7,896.7 72,442.8 11,183.1 40,312.6 Res. Alterations/Additions 99,341.6 86,964.2 52,440.8 107,613.1 82,331.3 Total Residential $819,463.7 $788,508.6 $952,705.7 $1,441,910.8 $1,315,792.3 New Commercial $90,424.4 $73,609.7 $58,855.0 $52,238.1 $105,124.2 New Industrial 7,956.4 268.7 25.0 1,155.5 0.0
New Other 68,208.3 110,951.1 76,576.0 73,032.7 116,224.1 Com. Alterations/Additions 84,271.0 78,159.7 49,149.7 58,371.2 80,371.0 Total Nonresidential $250,860.1 $262,989.2 $184,605.7 $184,797.5 $301,719.3 New Dwelling Units
Single-Family 1,963 2,080 2,552 4,176 3,701
Multiple Family 19 71 540 66 351
Total New Dwelling Units 1,982 2,151 3,092 4,242 4,052
Source: Construction Industry Research Board, Building Permit Summary. [Remainder of page intentionally left blank]
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Commercial Activity
A summary of historic taxable sales within the City and the County during the past five years in which data is available is shown in the following tables.
The total taxable sales during calendar year 2023 in the City were reported to be $5,811,773,968, a 2.50% decrease in the total taxable sales of $5,960,761,471 reported during calendar year 2022.
CITY OF ROSEVILLE
Taxable Transactions
Calendar Years 2019 through 2023
(Dollars in Thousands)
Retail Stores Total All Outlets
Number
of Permits
Taxable
Transactions
Number
of Permits
Taxable
Transactions
2019 3,748 $4,021,058 5,578 $4,889,702
2020 3,912 3,692,180 5,968 4,425,817
2021 3,623 4,800,774 5,602 5,618,718
2022 3,676 5,039,926 5,847 5,960,761
2023 3,600 4,925,006 5,725 5,811,774
Source: State Department of Tax and Fee Administration
The total taxable sales during calendar year 2023 in the County were reported to be $12,986,077,840, a 3.04% decrease in the total taxable sales of $13,392,760,915 reported during calendar year 2022.
PLACER COUNTY
Taxable Transactions
Calendar Years 2019 through 2023
(Dollars in Thousands)
Retail Stores Total All Outlets
Number
of Permits
Taxable
Transactions
Number
of Permits
Taxable
Transactions
2019 8,771 $7,943,537 14,193 $10,341,805
2020 9,165 7,931,068 15,141 10,319,123
2021 8,130 9,627,064 13,720 12,632,960
2022 8,201 10,051,067 14,163 13,392,761
2023 7,964 9,603,041 13,787 12,986,078
Source: State Department of Tax and Fee Administration.
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Transportation
The County’s transportation network is an integral part of its development. Centrally located in the State, the area is the hub of several major highways. Interstate 80 runs through the County, connecting San Francisco to New York. Highway 65 runs north from I-80 to Lincoln and Marysville. Interstate 5, which is west of the County, runs north to Seattle and south to Los Angeles. In the City, the major highways in the area are Interstate 80 and Interstate 5, and State Highways 65, 50, and 99.
Union Pacific Railroad bought Southern Pacific in 1996 and the J.R. Davis Yard, located in Roseville, is the largest rail facility on the West Coast. Union Pacific owns and operates track in 23 states, primarily west of the Mississippi River. Amtrak provides passenger service daily to San Francisco and San Jose, and the California Zephyr connects the County to the Midwest and Chicago.
Greyhound operates a station in Roseville, providing interstate destination services.
Greyhound also operates throughout the County, with bus depots or regularly scheduled stops in most of the communities along major highways and roads.
Sacramento International Airport serves the Roseville area. Served by ten major carriers and several commuter airlines, as well as air freight carriers, the airport handles passenger flights to over 140 cities with more than 130 scheduled departures per day and 4.3 million passengers annually. Nearby Auburn Municipal Airport serves charter and private aircraft for coastal, state and transcontinental flights. Executive air service is available as well. Auburn Municipal has an elevation of 1,520 feet and an east/west runway 3,100 feet in length.
Several trucking companies serve the County, ranging from interstate lines to local haulers, and transporting a wide variety of goods. United Parcel Service, with a distribution center in Rocklin, offers freight transportation services as well. [Remainder of page intentionally left blank]
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APPENDIX D
FORM OF OPINION OF BOND COUNSEL
[Closing Date]
City Council
City of Roseville
311 Vernon Street
Roseville, California 95678
OPINION: $__________ City of Roseville Amoruso Ranch Community Facilities District No. 1 (Public Facilities) Improvement Area No. 1 Special Tax Bonds Series 2024 Members of the City Council:
We have acted as bond counsel to the City of Roseville (the “City”) in connection with the issuance by the City of the $__________ City of Roseville Amoruso Ranch Community Facilities District No. 1 (Public Facilities) Improvement Area No. 1 Special Tax Bonds Series 2024 (the “Bonds”), pursuant to the Mello-Roos Community Facilities Act of 1982, as amended, constituting Section 53311, et seq. of the California Government Code (the “Act”) and a Fiscal Agent Agreement dated as of August 1, 2024 (the “Fiscal Agent Agreement”), by and between the City, on behalf of the City of Roseville Amoruso Ranch Community Facilities District No. 1 (Public Facilities), and U.S. Bank Trust Company, National Association, as fiscal agent. We have examined the law and such certified proceedings and other papers as we deem necessary to render this opinion.
As to questions of fact material to our opinion, we have relied upon representations of the City contained in the Fiscal Agent Agreement, and in the certified proceedings and other certifications of public officials furnished to us, without undertaking to verify the same by independent investigation.
Based upon the foregoing, we are of the opinion, under existing law, as follows:
1. The City is duly created and validly existing as a public body, corporate and politic, with the power to adopt the resolution authorizing the issuance of the Bonds, enter into the Fiscal Agent Agreement and perform the agreements on its part contained therein, and to issue the Bonds.
2. The Bonds have been duly authorized, executed and delivered by the City and are valid and binding limited obligations of the City, payable solely from the sources provided therefor in the Fiscal Agent Agreement.
3. The Fiscal Agent Agreement has been duly entered into by the City and constitutes a valid and binding obligation of the City enforceable upon the City.
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4. Pursuant to the Act, the Fiscal Agent Agreement creates a valid lien on the funds pledged by the Fiscal Agent Agreement.
5. The interest on the Bonds is excluded from gross income for federal income tax purposes and is not an item of tax preference for purposes of the federal alternative minimum tax.
Interest on the Bonds may be subject to the corporate alternative minimum tax. The opinions set forth in the preceding sentence are subject to the condition that the City comply with all requirements of the Internal Revenue Code of 1986, as amended, relating to the exclusion from gross income for federal income tax purposes of interest on obligations such as the Bonds. The City has made certain representations and covenants in order to comply with each such requirement. Inaccuracy of those representations, or failure to comply with certain of those covenants, may cause the inclusion of such interest in gross income for federal income tax purposes, which may be retroactive to the date of issuance of the Bonds.
6. The interest on the Bonds is exempt from personal income taxation imposed by the State of California.
We express no opinion regarding any other tax consequences arising with respect to the ownership, sale or disposition of, or the amount, accrual or receipt of interest on, the Bonds.
The rights of the owners of the Bonds and the enforceability of the Bonds and the Fiscal Agent Agreement may be subject to bankruptcy, insolvency, reorganization, moratorium and other similar laws affecting creditors’ rights heretofore or hereafter enacted and may also be subject to the exercise of judicial discretion in accordance with principles of equity or otherwise in appropriate cases.
This opinion is given as of the date hereof, and we assume no obligation to revise or supplement this opinion to reflect any facts or circumstances that may hereafter come to our attention, or any changes in law that may hereafter occur. Moreover, our opinions are not a guarantee of a particular result, and are not binding on the Internal Revenue Service or any court; rather, our opinions represent our legal judgment based upon our review of existing law that we deem relevant to such opinions and in reliance upon the representations, opinions, and covenants referenced above.
Respectfully submitted,
A Professional Law Corporation
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APPENDIX E
FORMS OF CONTINUING DISCLOSURE UNDERTAKINGS
CONTINUING DISCLOSURE CERTIFICATE
(City)
This CONTINUING DISCLOSURE CERTIFICATE (this “Disclosure Certificate”) dated as of August 1, 2024, is executed and delivered by the CITY OF ROSEVILLE (the “City”) in connection with the execution and delivery of its City of Roseville Amoruso Ranch Community Facilities District No. 1 (Public Facilities) Improvement Area No. 1 Special Tax Bonds Series 2024 (the “Bonds”). The Bonds are being executed and delivered pursuant to a Fiscal Agent Agreement dated as of August 1, 2024 (the “Fiscal Agent Agreement”), by and between the City and U.S. Bank Trust Company, National Association, as fiscal agent (the “Fiscal Agent”).
The District covenants and agrees as follows:
Section 1. Purpose of the Disclosure Certificate. This Disclosure Certificate is being executed and delivered by the City for the benefit of the holders and beneficial owners of the Bonds and in order to assist the Participating Underwriter in complying with S.E.C. Rule 15c2- 12(b)(5).
Section 2. Definitions. In addition to the definitions set forth above and in the Fiscal Agent Agreement, which apply to any capitalized term used in this Disclosure Certificate unless otherwise defined in this Section 2, the following capitalized terms shall have the following meanings:
“Annual Report” means any Annual Report provided by the City pursuant to, and as described in, Sections 3 and 4 of this Disclosure Certificate. “Annual Report Date” means the date that is nine months after the end of the City’s fiscal year (currently April 1 based on the City’s fiscal year end of June 30). “Dissemination Agent” means Willdan Financial Services, or any successor Dissemination Agent designated in writing by the City and which has filed with the City a written acceptance of such designation.
“Listed Events” means any of the events listed in Section 5(a) of this Disclosure Certificate. “MSRB” means the Municipal Securities Rulemaking Board, which has been designated by the Securities and Exchange Commission as the sole repository of disclosure information for purposes of the Rule, or any other repository of disclosure information that may be designated by the Securities and Exchange Commission as such for purposes of the Rule in the future. “Official Statement” means the final official statement executed by the City in connection with the issuance of the Bonds.
“Participating Underwriter” shall mean any of the original underwriters of the Bonds.
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“Rule” means Rule 15c2-12(b)(5) adopted by the Securities and Exchange Commission under the Securities Exchange Act of 1934, as it may be amended from time to time.
Section 3. Provision of Annual Reports.
(a) The City shall, or shall cause the Dissemination Agent to, not later than the Annual Report Date, commencing April 1, 2025, with the report for the 2023-24 fiscal year, provide to the MSRB, in an electronic format as prescribed by the MSRB, an Annual Report that is consistent with the requirements of Section 4 of this Disclosure Certificate. Not later than 15 Business Days prior to the Annual Report Date, the City shall provide the Annual Report to the Dissemination Agent (if other than the City). If by 15 Business Days prior to the Annual Report Date the Dissemination Agent (if other than the City) has not received a copy of the Annual Report, the Dissemination Agent shall contact the City to determine if the City is in compliance with the previous sentence. The Annual Report may be submitted as a single document or as separate documents comprising a package, and may include by reference other information as provided in Section 4 of this Disclosure Certificate; provided that the audited financial statements of the City may be submitted separately from the balance of the Annual Report, and later than the Annual Report Date, if not available by that date. If the City’s fiscal year changes, it shall give notice of such change in the same manner as for a Listed Event under Section 5(b). The City shall provide a written certification with each Annual Report furnished to the Dissemination Agent to the effect that such Annual Report constitutes the Annual Report required to be furnished by the City hereunder.
(b) If the City does not provide (or cause the Dissemination Agent to provide) an Annual Report by the Annual Report Date, the City shall provide (or cause the Dissemination Agent to provide) in a timely manner to the MSRB a notice to such effect, in an electronic format as prescribed by the MSRB.
(c) With respect to each Annual Report, the Dissemination Agent shall:
(i) determine prior to each Annual Report Date the then-applicable rules and electronic format prescribed by the MSRB for the filing of annual continuing disclosure reports; and
(ii) if the Dissemination Agent is other than the City, file a report with the City certifying that the Annual Report has been provided pursuant to this Disclosure Certificate, and stating the date it was provided.
Section 4. Content of Annual Reports. The City’s Annual Report shall contain or incorporate by reference the following:
(a) The City’s audited financial statements prepared in accordance with generally accepted accounting principles as promulgated to apply to governmental entities from time to time by the Governmental Accounting Standards Board. If the City’s audited financial statements are not available by the Annual Report Date, the Annual Report shall contain unaudited financial statements in a format similar to the financial statements contained in the Official Statement, and the audited financial statements shall be filed in the same manner as the Annual Report when they become available.
(b) The following information, unless otherwise specified, as of September 30 of the preceding year:
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(i) Principal amount of all outstanding bonds of Improvement Area No. 1. (ii) Balance in the Improvement Fund.
(iii) Balance in 2024 Reserve Account of the Reserve Fund, and statement of the Reserve Requirement for the Bonds. Statement of projected draws on the 2024 Reserve Account of the Reserve Fund, if any.
(iv) Balance in other funds and accounts held by the City or fiscal agent related to the Bonds.
(v) Additional debt authorized by the City and payable from or secured by assessments or special taxes with respect to property within Improvement Area No. 1. (vi) The Special Tax levy, the delinquency rate, total amount of delinquencies, number of parcels delinquent in payment for the five most recent fiscal years. (vii) Notwithstanding the September 30 reporting date, the following information shall be reported as of the last day of the month immediately preceding the date of the Annual Report rather than as of September 30. Identity of each delinquent taxpayer responsible for 5 percent or more of total Special Tax levied, and the following information:
assessor parcel number, assessed value of applicable properties, amount of Special Tax levied, amount delinquent by parcel number and status of foreclosure proceedings. If any foreclosure has been completed, summary of results of foreclosure sales or transfers. (viii) Most recently available total assessed value of all parcels subject to the Special Tax.
(ix) List of landowners and assessor’s parcel number of parcels subject to 20% or more of the Special Tax levy including the following information: development status and land use classification, to the extent shown in City records as of April 30 of the preceding fiscal year and assessed value (land and improvements). (c) In addition to any of the information expressly required to be provided under this Disclosure Certificate, the City shall provide such further material information, if any, as may be necessary to make the specifically required statements, in the light of the circumstances under which they are made, not misleading.
(d) Any or all of the items listed above may be included by specific reference to other documents, including official statements of debt issues of the City or related public entities, which are available to the public on the MSRB’s Internet web site or filed with the Securities and Exchange Commission. The City shall clearly identify each such other document so included by reference.
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Section 5. Reporting of Significant Events.
(a) The City shall give, or cause to be given, notice of the occurrence of any of the following Listed Events with respect to the Bonds:
(1) Principal and interest payment delinquencies.
(2) Non-payment related defaults, if material.
(3) Unscheduled draws on debt service reserves reflecting financial difficulties. (4) Unscheduled draws on credit enhancements reflecting financial difficulties. (5) Substitution of credit or liquidity providers, or their failure to perform. (6) Adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final determinations of taxability, Notices of Proposed Issue (IRS Form 5701-TEB) or other material notices or determinations with respect to the tax status of the security, or other material events affecting the tax status of the security.
(7) Modifications to rights of security holders, if material. (8) Bond calls, if material, and tender offers.
(9) Defeasances.
(10) Release, substitution, or sale of property securing repayment of the securities, if material.
(11) Rating changes.
(12) Bankruptcy, insolvency, receivership or similar event of the City or other obligated person.
(13) The consummation of a merger, consolidation, or acquisition involving the City or an obligated person, or the sale of all or substantially all of the assets of the City or an obligated person (other than in the ordinary course of business), the entry into a definitive agreement to undertake such an action, or the termination of a definitive agreement relating to any such actions, other than pursuant to its terms, if material. (14) Appointment of a successor or additional fiscal agent or the change of name of a fiscal agent, if material.
(15) Incurrence of a financial obligation of the City, if material, or agreement to covenants, events of default, remedies, priority rights, or other similar terms of a financial obligation of the City, any of which affect security holders, if material (for the definition of “financial obligation,” see clause (e)).
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(16) Default, event of acceleration, termination event, modification of terms, or other similar events under the terms of a financial obligation of the City, any of which reflect financial difficulties (for the definition of “financial obligation,” see clause (e)).
(b) Whenever the City obtains knowledge of the occurrence of a Listed Event, the City shall, or shall cause the Dissemination Agent (if not the City) to, file a notice of such occurrence with the MSRB, in an electronic format as prescribed by the MSRB, in a timely manner not in excess of 10 business days after the occurrence of the Listed Event. Notwithstanding the foregoing, notice of Listed Events described in subsections (a)(8) and (9) above need not be given under this subsection any earlier than the notice (if any) of the underlying event is given to holders of affected Bonds under the Fiscal Agent Agreement.
(c) The City acknowledges that the events described in subparagraphs (a)(2), (a)(7), (a)(8) (if the event is a bond call), (a)(10), (a)(13), (a)(14) and (a)(15) of this Section 5 contain the qualifier “if material” and that subparagraph (a)(6) also contains the qualifier “material” with respect to certain notices, determinations or other events affecting the tax status of the Bonds.
The City shall cause a notice to be filed as set forth in paragraph (b) above with respect to any such event only to the extent that it determines the event’s occurrence is material for purposes of U.S. federal securities law. Whenever the City obtains knowledge of the occurrence of any of these Listed Events, the City will as soon as possible determine if such event would be material under applicable federal securities law. If such event is determined to be material, the City will cause a notice to be filed as set forth in paragraph (b) above. The Dissemination Agent shall not be responsible for determining whether an event is material. (d) For purposes of this Disclosure Certificate, any event described in paragraph (a)(12) above is considered to occur when any of the following occur: the appointment of a receiver, fiscal agent, or similar officer for the City in a proceeding under the United States Bankruptcy Code or in any other proceeding under state or federal law in which a court or governmental authority has assumed jurisdiction over substantially all of the assets or business of the City, or if such jurisdiction has been assumed by leaving the existing governing body and officials or officers in possession but subject to the supervision and orders of a court or governmental authority, or the entry of an order confirming a plan of reorganization, arrangement, or liquidation by a court or governmental authority having supervision or jurisdiction over substantially all of the assets or business of the City. (e) For purposes of Section 5(a)(15) and (16), “financial obligation” means a (i) debt obligation; (ii) derivative instrument entered into in connection with, or pledged as security or a source of payment for, an existing or planned debt obligation; or (iii) guarantee of (i) or (ii). The term financial obligation shall not include municipal securities as to which a final official statement has been provided to the MSRB consistent with the Rule.
Section 6. Identifying Information for Filings with the MSRB. All documents provided to the MSRB pursuant to this Disclosure Certificate shall be accompanied by identifying information as prescribed by the MSRB.
Section 7. Termination of Reporting Obligation. The City’s obligations under this Disclosure Certificate shall terminate upon the legal defeasance, prior redemption or payment in full of all of the Bonds. If such termination occurs prior to the final maturity of the Bonds, the City shall give notice of such termination in the same manner as for a Listed Event under Section 5(b).
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Section 8. Dissemination Agent. The City may, from time to time, appoint or engage a Dissemination Agent to assist it in carrying out its obligations under this Disclosure Certificate, and may discharge any Dissemination Agent, with or without appointing a successor Dissemination Agent. Any Dissemination Agent may resign by providing 30 days’ written notice to the City.
Section 9. Amendment; Waiver. Notwithstanding any other provision of this Disclosure Certificate, the City may amend this Disclosure Certificate, and any provision of this Disclosure Certificate may be waived, provided that the following conditions are satisfied:
(a) if the amendment or waiver relates to the provisions of Sections 3(a), 4 or 5(a), it may only be made in connection with a change in circumstances that arises from a change in legal requirements, change in law, or change in the identity, nature, or status of an obligated person with respect to the Bonds, or type of business conducted; (b) the undertakings herein, as proposed to be amended or waived, would, in the opinion of nationally recognized bond counsel, have complied with the requirements of the Rule at the time of the primary offering of the Bonds, after taking into account any amendments or interpretations of the Rule, as well as any change in circumstances; and (c) the proposed amendment or waiver either (i) is approved by holders of the Bonds in the manner provided in the Fiscal Agent Agreement for amendments to the Fiscal Agent Agreement with the consent of holders, or (ii) does not, in the opinion of nationally recognized bond counsel, materially impair the interests of the holders or beneficial owners of the Bonds.
If the annual financial information or operating data to be provided in the Annual Report is amended pursuant to the provisions hereof, the first Annual Report filed pursuant hereto containing the amended operating data or financial information shall explain, in narrative form, the reasons for the amendment and the impact of the change in the type of operating data or financial information being provided.
If an amendment is made to this Disclosure Certificate modifying the accounting principles to be followed in preparing financial statements, the Annual Report for the year in which the change is made shall present a comparison between the financial statements or information prepared on the basis of the new accounting principles and those prepared on the basis of the former accounting principles. The comparison shall include a qualitative discussion of the differences in the accounting principles and the impact of the change in the accounting principles on the presentation of the financial information, in order to provide information to investors to enable them to evaluate the ability of the City to meet its obligations. To the extent reasonably feasible, the comparison shall be quantitative.
A notice of any amendment made pursuant to this Section 9 shall be filed in the same manner as for a Listed Event under Section 5(b).
Section 10. Additional Information. Nothing in this Disclosure Certificate shall be deemed to prevent the City from disseminating any other information, using the means of dissemination set forth in this Disclosure Certificate or any other means of communication, or including any other information in any Annual Report or notice of occurrence of a Listed Event, in addition to that which is required by this Disclosure Certificate. If the City chooses to include any information in any Annual Report or notice of occurrence of a Listed Event in addition to that which is specifically E-7
required by this Disclosure Certificate, the City shall have no obligation under this Disclosure Certificate to update such information or include it in any future Annual Report or notice of occurrence of a Listed Event.
Section 11. Default. If the City fails to comply with any provision of this Disclosure Certificate, the Participating Underwriter or any holder or beneficial owner of the Bonds may take such actions as may be necessary and appropriate, including seeking mandate or specific performance by court order, to cause the City to comply with its obligations under this Disclosure Certificate. A default under this Disclosure Certificate shall not be deemed an Event of Default under the Fiscal Agent Agreement, and the sole remedy under this Disclosure Certificate in the event of any failure of the City to comply with this Disclosure Certificate shall be an action to compel performance.
Section 12. Duties, Immunities and Liabilities of Dissemination Agent. (a) The Dissemination Agent shall have only such duties as are specifically set forth in this Disclosure Certificate, and the City agrees to indemnify and save the Dissemination Agent, its officers, directors, employees and agents, harmless against any loss, expense and liabilities which they may incur arising out of or in the exercise or performance of its powers and duties hereunder, including the costs and expenses (including attorneys’ fees) of defending against any claim of liability, but excluding liabilities due to the Dissemination Agent’s negligence or willful misconduct. The Dissemination Agent shall have no duty or obligation to review any information provided to it by the City hereunder and shall not be deemed to be acting in any fiduciary capacity for the City, the Bond holders, or any other party. The obligations of the City under this Section shall survive resignation or removal of the Dissemination Agent and payment of the Bonds. (b) The Dissemination Agent shall be paid compensation by the City for its services provided hereunder in accordance with its schedule of fees as amended from time to time, and shall be reimbursed for all expenses, legal fees and advances made or incurred by the Dissemination Agent in the performance of its duties hereunder.
Section 13. Beneficiaries. This Disclosure Certificate shall inure solely to the benefit of the City, the Dissemination Agent, the Participating Underwriter and the holders and beneficial owners from time to time of the Bonds, and shall create no rights in any other person or entity.
Section 14. Counterparts. This Disclosure Certificate may be executed in several counterparts, each of which shall be regarded as an original, and all of which shall constitute one and the same instrument.
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IN WITNESS WHEREOF, the parties hereto have executed this Disclosure Certificate as of the date first above written.
CITY OF ROSEVILLE, for and on behalf of
City of Roseville Amoruso Ranch Community
Facilities District No. 1 (Public Facilities)
By:
Name:
Title:
WILLDAN FINANCIAL SERVICES, as
Dissemination Agent
By:
Name:
Title:
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CONTINUING DISCLOSURE CERTIFICATE
([Name of Merchant Builder])
THIS CONTINUING DISCLOSURE CERTIFICATE ([NAME OF MERCHANT BUILDER]) (the “Disclosure Certificate”) dated as of August 1, 2024, is executed by ______________ (the “Builder”) in connection with the execution and delivery by the City of Roseville of its City of Roseville Amoruso Ranch Community Facilities District No. 1 (Public Facilities) Improvement Area No. 1 Special Tax Bonds Series 2024 (the “Bonds”). The Bonds are being executed and delivered pursuant to a Fiscal Agent Agreement dated as of August 1, 2024 (the “Fiscal Agent Agreement”), by and between the City and U.S. Bank Trust Company, National Association, as fiscal agent.
The Builder covenants and agrees as follows:
Section 1. Purpose of the Disclosure Certificate. This Disclosure Certificate is being executed and delivered by the Builder for the benefit of the holders and beneficial owners of the Bonds.
Section 2. Definitions. In addition to the definitions set forth above and in the Fiscal Agent Agreement, which apply to any capitalized term used in this Disclosure Certificate unless otherwise defined herein, the following capitalized terms shall have the following meanings:
“Affiliate” means any person presently directly (or indirectly through one or more intermediaries) under managerial control of the Builder, and about whom information could be material to potential investors in their investment decision regarding the Bonds (including without limitation information relevant to the proposed development of the Property or to the Builder's ability to pay the Special Taxes levied on the Property prior to delinquency). “Assumption Agreement” means an undertaking of a Major Owner for the benefit of the holders and beneficial owners of the Bonds containing terms substantially similar to this Disclosure Certificate (as modified for such Major Owner’s development and financing plans with respect to property owned by such Major Owner in Improvement Area No. 1), whereby such Major Owner agrees to provide periodic reports and notices of significant events, setting forth the information described in sections 4 and 5 hereof, respectively, with respect to the portion of the Property in Improvement Area No. 1 owned by such Major Owner, at the option of the Builder or such Major Owner, agrees to indemnify the Dissemination Agent (if any) pursuant to a provision substantially in the form of Section 11 hereof.
“Dissemination Agent” means the Builder, or any successor Dissemination Agent designated in writing by the Builder, and which has filed with the Builder, the City and the Participating Underwriter a written acceptance of such designation, and which is experienced in providing dissemination agent services such as those required under this Disclosure Certificate. “District” means the City of Roseville Amoruso Ranch Community Facilities District No. 1 (Public Facilities).
“Hearthstone Land Bank” means [FOR D.R. HORTON: Amoruso Ranch P1A – Roseville, L.P.] [FOR RICHMOND AMERICAN: Not Applicable].
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“Improvement Area No. 1” means the improvement area designated as such within the District.
“Listed Events” means any of the events listed in Section 5(a) of this Disclosure Certificate.
“Major Owner” means, as of any date of determination, a Person that owns land in Improvement Area No. 1 that is collectively responsible for 20% or more of the Special Taxes in Improvement Area No. 1.
“MSRB” means the Municipal Securities Rulemaking Board, which has been designated by the Securities and Exchange Commission as the sole repository of disclosure information, or any other repository of disclosure information that may be designated by the Securities and Exchange Commission as such in the future.
“Official Statement” means the final Official Statement executed by the City in connection with the issuance of the Bonds.
“Option Agreement” means that [FOR D.R. HORTON: Option and Development Agreement dated ______, 20___, between the Hearthstone Land Bank and the Builder] [FOR RICHMOND AMERICAN: Not Applicable].
“Participating Underwriter” means Piper Sandler & Co., the original Underwriter of the Bonds.
“Periodic Report” means any Periodic Report provided by the Builder pursuant to, and as described in, Sections 3 and 4 of this Disclosure Certificate. “Person” means an individual, a corporation, a partnership, a limited liability company, an association, a joint stock company, a trust, any unincorporated organization or a government or political subdivision thereof.
“Property” means, as of the date of determination, the real property within the boundaries of Improvement Area No. 1 that is owned by (i) the Builder, (ii) any Affiliate of the Builder, (iii) [FOR D.R. HORTON ONLY: Hearthstone Land Bank (during the term of the Option Agreement),] and (iv) the property in Improvement Area No. 1 that the Builder sold to a Major Owner who has not assumed the undertakings of this Disclosure Certificate under Section 6(b) and that is owned by such Major Owner.
“Report Date” means May 1 and November 1 of each year.
“Special Taxes” means the special taxes levied on the Property for Improvement Area No. 1.
Section 3. Provision of Periodic Reports.
(a) So long as Builder’s obligations under this Disclosure Certificate have not been terminated pursuant to Section 6 below, the Builder shall, or, upon written direction of the Builder the Dissemination Agent shall, not later than the Report Date, commencing November 1, 2024, file or cause to be filed with the MSRB a Periodic Report which is consistent with the requirements of Section 4 of this Disclosure Certificate with a copy to the Participating Underwriter and the City.
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Not later than 15 calendar days prior to the Report Date, the Builder shall provide the Periodic Report to the Dissemination Agent (if different from the Builder). The Builder shall provide a written certification with (or included as a part of) each Periodic Report furnished to the Dissemination Agent (if different from the Builder), the Participating Underwriter and the City to the effect that such Periodic Report constitutes the Periodic Report required to be furnished by it under this Disclosure Certificate. The Dissemination Agent (if different than the Builder), the Participating Underwriter and the City may conclusively rely upon such certification of the Builder and shall have no duty or obligation to review the Periodic Report. The Periodic Report may be submitted as a single document or as separate documents comprising a package, and may incorporate by reference other information as provided in Section 4 of this Disclosure Certificate. (b) If the Dissemination Agent (if different than the Builder) does not receive a Periodic Report by 15 calendar days prior to the Report Date, the Dissemination Agent shall send a reminder notice to the Builder that the Periodic Report has not been provided as required under Section 3(a) above. The reminder notice shall instruct the Builder to determine whether its obligations under this Disclosure Certificate have terminated (pursuant to Section 6 below) and, if so, to provide the Dissemination Agent with a notice of such termination in the same manner as for a Listed Event (pursuant to Section 5 below). If the Builder does not provide, or cause the Dissemination Agent to provide, a Periodic Report to the MSRB by the Report Date as required in subsection (a) above, the Dissemination Agent shall send a notice to the MSRB to such effect, in substantially the form prescribed by the MSRB, with a copy to the City and the Participating Underwriter.
(c) The Dissemination Agent shall:
(i) determine prior to each Report Date the then-applicable rules and electronic format prescribed by the MSRB for the filing of continuing disclosure reports; and
(ii) to the extent the Periodic Report has been furnished to it, file a report with the Builder (if the Dissemination Agent is other than the Builder), the City and the Participating Underwriter certifying that the Periodic Report has been provided pursuant to this Disclosure Certificate, and stating the date it was provided.
Section 4. Content of Periodic Reports. Each Periodic Report shall contain or incorporate by reference the information set forth in Exhibit A relating to the Builder, any or all of which may be included by specific reference to other documents, including official statements of debt issues of the Builder or related public entities, which are available to the public on the MSRB’s Internet web site or filed with the Securities and Exchange Commission. If the document included by reference is a final official statement, it must be available from the MSRB. The Builder shall clearly identify each such other document so included by reference.
In addition to any of the information expressly required to be provided in Exhibit A, each Periodic Report shall include such further information, if any, as may be necessary to make the specifically required statements, in the light of the circumstances under which they are made, not misleading.
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Section 5. Reporting of Significant Events.
(a) So long as Builder’s obligations under this Disclosure Certificate have not been terminated pursuant to Section 6 below, the Builder shall give, or cause to be given, notice of the occurrence of any of the following Listed Events with respect to itself or the Property, if material:
(i) bankruptcy or insolvency proceedings commenced by or against the Builder and, if known, any bankruptcy or insolvency proceedings commenced by or against any Affiliate of the Builder, that is reasonably likely to have a significant impact on the Builder’s ability to pay Special Taxes or to sell or develop the Property; (ii) failure to pay any taxes, special taxes (including the Special Taxes) or assessments due with respect to the Property on or prior to the delinquency date to the extent such failure is not promptly cured by the Builder upon discovery thereof; (iii) filing of a lawsuit of which the Builder is aware against the Builder or an Affiliate seeking damages, which, if successful, could have a material and adverse impact on the Builder’s ability to pay Special Taxes prior to delinquency or to sell or develop the Property;
(iv) material damage to or destruction of any of the improvements on the Property; and
(v) any payment default or other material default by the Builder on any loan with respect to the construction of improvements on the Property that continues to exist beyond any applicable notice and cure periods on any loan with respect to the construction of improvements on the Property.
(b) Whenever the Builder obtains knowledge of the occurrence of a Listed Event, the Builder shall as soon as possible determine if such event would be material under applicable Federal securities law.
(c) If the Builder determines that knowledge of the occurrence of a Listed Event would be material under applicable Federal securities law, the Builder shall, or shall cause the Dissemination Agent to, promptly file a notice of such occurrence with the MSRB, with a copy to the City and the Participating Underwriter.
Section 6. Duration of Reporting Obligation.
(a) All the Builder’s obligations hereunder shall commence on the date hereof and terminate (except as provided in Section 11) on the earliest to occur of the following:
(i) upon the legal defeasance, prior redemption or payment in full of all the Bonds;
(ii) at such time as the Property in Improvement Area No. 1 is collectively responsible for less than 20% of the Special Taxes; or
(iii) the date on which all of the Special Taxes attributable to the Property are prepaid in full.
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The Builder shall give notice of the termination of its obligations under this Disclosure Certificate in the same manner as for a Listed Event under Section 5. (b) If a portion of the Property is conveyed to a Person that, upon such conveyance, will be a Major Owner, the obligations of the Builder hereunder with respect to the Property conveyed to the Major Owner may be assumed by such Major Owner, and the Builder’s obligations hereunder with respect to the Property conveyed will be terminated. In order to effect such assumption, such Major Owner shall enter into an Assumption Agreement in form and substance equivalent to this Disclosure Certificate or as otherwise satisfactory to the City and the Participating Underwriter. However, a Major Owner shall not be required to enter into an Assumption Agreement if such Major Owner is already a party to a continuing disclosure certificate in form and substance similar to this Disclosure Certificate with respect to the Bonds, and under which the Property conveyed to such Major Owner will become subject to future Periodic Reports. If a Major Owner required by this Section 6(b) to enter into an Assumption Agreement does not enter into an Assumption Agreement, then the Builder shall continue reporting on the Property conveyed to the Major Owner so long as it is owned by such Major Owner or until an Assumption Agreement is executed or until the Builder’s obligations may be terminated in accordance with Section 6(a).
Section 7. Dissemination Agent. The Builder may, from time to time, appoint or engage a Dissemination Agent to assist the Builder in carrying out its obligations under this Disclosure Certificate, and may discharge any such Dissemination Agent, with or without appointing a successor Dissemination Agent. The Dissemination Agent may resign by providing thirty days’ written notice to the City, the Builder and the Participating Underwriter.
Section 8. Amendment; Waiver. Notwithstanding any other provision of this Disclosure Certificate, the Builder may amend this Disclosure Certificate, and any provision of this Disclosure Certificate may be waived, provided that the following conditions are satisfied (provided, however, that the Dissemination Agent shall not be obligated under any such amendment that modifies or increases its duties or obligations hereunder without its written consent thereto):
(a) if the amendment or waiver relates to the provisions of sections 3(a), 4 or 5(a), it may only be made in connection with a change in circumstances that arises from a change in legal requirements, change in law, or change in the identity, nature, or status of the Builder with respect to the Bonds, or type of business conducted; and (b) the proposed amendment or waiver either (i) is approved by holders of the Bonds in the manner provided in the Fiscal Agent Agreement, with the consent of holders, or (ii) does not, in the opinion of nationally recognized bond counsel, materially impair the interests of the holders or beneficial owners of the Bonds.
Section 9. Additional Information. Nothing in this Disclosure Certificate shall be deemed to prevent the Builder from disseminating any other information, using the means of dissemination set forth in this Disclosure Certificate or any other means of communication, or including any other information in any Periodic Report or notice of occurrence of a Listed Event, in addition to that which is required by this Disclosure Certificate. If the Builder chooses to include any information in any Periodic Report or notice of occurrence of a Listed Event in addition to that which is specifically required by this Disclosure Certificate, the Builder shall have no obligation under this Disclosure Certificate to update such information or include it in any future Periodic Report or notice of occurrence of a Listed Event.
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Section 10. Default. In the event of a failure of the Builder to comply with any provision of this Disclosure Certificate, the City, the Participating Underwriter, and any holder or beneficial owner of the Bonds may take such actions as may be necessary and appropriate, including seeking mandate or specific performance by court order, to cause the Builder to comply with its obligations under this Disclosure Certificate. A default under this Disclosure Certificate shall not be deemed an Event of Default under the Fiscal Agent Agreement, and the sole and exclusive remedy under this Disclosure Certificate in the event of any failure of the Builder to comply with this Disclosure Certificate shall be an action to compel performance.
Section 11. Duties, Immunities and Liabilities of Dissemination Agent. The Dissemination Agent shall have only such duties as are specifically set forth in this Disclosure Certificate, and the Builder agrees to indemnify and save the Dissemination Agent, its officers, directors, employees and agents (each, an “Indemnified Party”), harmless against any loss, expense and liabilities which it may incur arising out of or in the exercise or performance of its powers and duties hereunder, including the reasonable costs and expenses (including attorneys’ fees) of defending against any claim of liability, but excluding (i) losses, liabilities, costs and expenses due to an Indemnified Party’s negligence or willful misconduct or failure to perform its duties hereunder and (ii) losses, expenses and liabilities due to the failure of the City to pay the fees and expenses of the Dissemination Agent. The Dissemination Agent (if other than the Builder) shall be paid compensation for its services provided hereunder from Special Taxes levied for administration of the CFD in accordance with the Dissemination Agent’s schedule of fees as amended from time to time, which schedule, as amended, shall be reasonably acceptable, and all reasonable expenses, reasonable legal fees and advances made or incurred by the Dissemination Agent in the performance of its duties hereunder. The Dissemination Agent shall have no duty or obligation to review any information provided to it hereunder and shall not be deemed to be acting in any fiduciary capacity for the City, the Builder, the Bond owners, or any other party. The obligations of the Builder under this Section shall survive resignation or removal of the Dissemination Agent and payment of the Bonds, but shall be assumed by a Major Owner from and after the date of such assumption when property is sold to a Major Owner and such Major Owner enters into an Assumption Agreement.
Section 12. Notices. Any notice or communications to be among any of the parties to this Disclosure Certificate may be given by electronic, regular, or overnight mail as follows:
To the Builder: ______________
______________
Attn: ______________
______________
______________
Email: ______________
To the City: City of Roseville
Attn: CFD Administrator
311 Vernon Street
Roseville, CA 95678
To the Participating
Underwriter: Piper Sandler & Co.
Attn: Managing Director
2321 Rosecrans Avenue, Suite 3200
El Segundo, CA 90245
E-15
Any person may, by written notice to the other persons listed above, designate a different address or telephone number(s) to which subsequent notices or communications should be sent.
Section 13. Beneficiaries. This Disclosure Certificate shall inure solely to the benefit of the City, the Builder (its successors and assigns), the Dissemination Agent, the Participating Underwriter and holders and beneficial owners from time to time of the Bonds, and shall create no rights in any other person or entity. All obligations of the Builder hereunder shall be assumed by any legal successor to the obligations of the Builder as a result of a sale, merger, consolidation or other reorganization.
IN WITNESS WHEREOF, the Builder has executed this Disclosure Certificate as of the date first above written.
___________________________,
a _________________
By:
Name:
Title:
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EXHIBIT A
PERIODIC REPORT
[MAY 1, ____ / NOVEMBER 1, _____]
$____________
CITY OF ROSEVILLE
AMORUSO RANCH COMMUNITY FACILITIES DISTRICT NO. 1 (PUBLIC FACILITIES) IMPROVEMENT AREA NO. 1
SPECIAL TAX BONDS
SERIES 2024
This Periodic Report is hereby submitted under Section 4 of the Continuing Disclosure Certificate ([Name of Merchant Builder]) (the “Disclosure Certificate”) dated August 1, 2024, executed by the undersigned (the “Builder”) in connection with the issuance of the abovecaptioned bonds by the City of Roseville (the “City”) with respect to its City of Roseville Amoruso Ranch Community Facilities District No. 1 (Public Facilities) (the “District”).
Capitalized terms used in this Periodic Report but not otherwise defined have the meanings given to them in the Disclosure Certificate.
I. Property Ownership and Development
The information in this section is provided as of ____________________ (this date must be not more than 60 days before the due date of this Periodic Report).
A. Description of the Property in Improvement Area No. 1, in substance and form similar to such information in the Official Statement for the Bonds under the heading “MERCHANT BUILDER INFORMATION – [Richmond American] [D.R. Horton]”:
______________________________________________________________________ ______________________________________________________________________ B. Updated information regarding land development and home construction activities with respect to the Property described in the Official Statement for the Bonds under the heading “MERCHANT BUILDER INFORMATION – [Richmond American] [D.R. Horton]” or the Periodic Report last filed in accordance with the Disclosure Certificate, [FOR D.R. HORTON: including the number of parcels acquired by the Builder from the Land Bank pursuant to the Option Agreement]:
______________________________________________________________________ ______________________________________________________________________ C. Status of building permits and any material changes to the description of land use or development entitlements for the Property described in the Official Statement for the Bonds under the heading “MERCHANT BUILDER INFORMATION – [Richmond American] [D.R.
Horton]” or the Periodic Report last filed in accordance with the Disclosure Certificate:
______________________________________________________________________ E-17
______________________________________________________________________ D. Status of any land purchase contracts with regard to the Property, including sales of land in Improvement Area No. 1 to other property owners (other than individual homeowners). ______________________________________________________________________ ______________________________________________________________________ II. Legal and Financial Status of Builder
Unless such information has previously been included or incorporated by reference in a Periodic Report, describe any material change in the legal structure of the Builder or the financial condition and financing plan of the Builder that would materially and adversely interfere with its ability to complete the development plan with respect to the Property described in the Official Statement.
To the extent that the ownership of the Builder has changed, describe all material terms of the new ownership structure.
______________________________________________________________________ ______________________________________________________________________ III. Change in Development or Financing Plans
Unless such information has previously been included or incorporated by reference in a Periodic Report, describe any development plans or financing plans relating to the Property that are materially different from the proposed development and financing plan for the Property described in the Official Statement or in a previous Periodic Report. ______________________________________________________________________ ______________________________________________________________________ IV. Official Statement Updates
Unless such information has previously been included or incorporated by reference in a Periodic Report, describe any other significant changes in the information relating to the Builder or the Property contained in the Official Statement under the heading “MERCHANT BUILDER INFORMATION – [Lennar Homes] [Woodside] [Meritage] [D.R. Horton]” that would materially and adversely interfere with the Builder’s ability to develop and sell the Property as described in the Official Statement.
______________________________________________________________________ ______________________________________________________________________ E-18
V. Other Material Information
In addition to any of the information expressly required above, provide such further information, if any, with respect to the Property and the Builder as may be necessary to make the specifically required statements, in the light of the circumstances under which they are made, not misleading.
_____________________________________________________________________ ______________________________________________________________________ Certification
On behalf of the Builder, the undersigned officer or authorized representative, based on actual knowledge after reasonable inquiry of employees of Builder and its affiliates, hereby certifies that this Periodic Report constitutes the Periodic Report required to be furnished by the Builder under the Disclosure Certificate.
ANY OTHER STATEMENTS REGARDING THE BUILDER, THE DEVELOPMENT OF THE PROPERTY, THE BUILDER’S FINANCING PLAN OR FINANCIAL CONDITION, OR THE
BONDS, OTHER THAN STATEMENTS MADE BY THE BUILDER IN AN OFFICIAL RELEASE,
OR FILED WITH THE MUNICIPAL SECURITIES RULEMAKING BOARD, ARE NOT AUTHORIZED BY THE BUILDER. THE BUILDER IS NOT RESPONSIBLE FOR THE
ACCURACY, COMPLETENESS OR FAIRNESS OF ANY SUCH UNAUTHORIZED STATEMENTS.
THE BUILDER HAS NO OBLIGATION TO UPDATE THIS PERIODIC REPORT OTHER THAN AS EXPRESSLY PROVIDED IN THE DISCLOSURE CERTIFICATE.
Dated:
__________________
By: _____________________________
_____________________________
_____________________________
F-1
APPENDIX F
SUMMARY OF CERTAIN PROVISIONS OF FISCAL AGENT AGREEMENT G-1
APPENDIX G
DTC AND THE BOOK-ENTRY ONLY SYSTEM
The following description of the Depository Trust Company (“DTC”), the procedures and record keeping with respect to beneficial ownership interests in the 2024 Bonds, payment of principal, interest and other payments on the 2024 Bonds (herein, the “Securities”) to DTC Participants or Beneficial Owners, confirmation and transfer of beneficial ownership interest in the Securities and other related transactions by and between DTC, the DTC Participants and the Beneficial Owners is based solely on information provided by DTC. Accordingly, no representations can be made concerning these matters and neither the DTC Participants nor the Beneficial Owners should rely on the foregoing information with respect to such matters, but should instead confirm the same with DTC or the DTC Participants, as the case may be.
Neither the issuer of the Securities (the “Issuer”) nor the fiscal agent appointed with respect to the Securities (the “Agent”) takes any responsibility for the information contained in this Appendix.
No assurances can be given that DTC, DTC Direct Participants or Indirect Participants will distribute to the Beneficial Owners (a) payments of interest, principal or premium, if any, with respect to the Securities, (b) certificates representing ownership interest in or other confirmation or ownership interest in the Securities, or (c) redemption or other notices sent to DTC or Cede & Co., its nominee, as the registered owner of the Securities, or that they will so do on a timely basis, or that DTC, DTC Direct Participants or DTC Indirect Participants will act in the manner described in this Appendix. The current “Rules” applicable to DTC are on file with the Securities and Exchange Commission and the current “Procedures” of DTC to be followed in dealing with DTC Participants are on file with DTC.
1. The Depository Trust Company (“DTC”) will act as securities depository for the securities (the “Securities”). The Securities will be issued as fully-registered securities registered in the name of Cede & Co. (DTC’s partnership nominee) or such other name as may be requested by an authorized representative of DTC. One fully-registered Security certificate will be issued for each issue of the Securities, each in the aggregate principal amount of such issue, and will be deposited with DTC. If, however, the aggregate principal amount of any issue exceeds $500 million, one certificate will be issued with respect to each $500 million of principal amount, and an additional certificate will be issued with respect to any remaining principal amount of such issue.
2. DTC, the world’s largest securities depository, is a limited-purpose trust company organized under the New York Banking Law, a “banking organization” within the meaning of the New York Banking Law, a member of the Federal Reserve System, a “clearing corporation” within the meaning of the New York Uniform Commercial Code, and a “clearing agency” registered pursuant to the provisions of Section 17A of the Securities Exchange Act of 1934. DTC holds and provides asset servicing for over 3.5 million issues of U.S. and non-U.S. equity issues, corporate and municipal debt issues, and money market instruments (from over 100 countries) that DTC’s participants (“Direct Participants”) deposit with DTC. DTC also facilitates the post-trade settlement among Direct Participants of sales and other securities transactions in deposited securities, through electronic computerized book-entry transfers and pledges between Direct Participants’ accounts. This eliminates the need for physical movement of securities certificates.
Direct Participants include both U.S. and non-U.S. securities brokers and dealers, banks, trust companies, clearing corporations, and certain other organizations. DTC is a wholly-owned subsidiary of The Depository Trust & Clearing Corporation (“DTCC”). DTCC is the holding G-2
company for DTC, National Securities Clearing Corporation and Fixed Income Clearing Corporation, all of which are registered clearing agencies. DTCC is owned by the users of its regulated subsidiaries. Access to the DTC system is also available to others such as both U.S. and non-U.S. securities brokers and dealers, banks, trust companies, and clearing corporations that clear through or maintain a custodial relationship with a Direct Participant, either directly or indirectly (“Indirect Participants”). DTC has a Standard & Poor’s rating of AA+. The DTC Rules applicable to its Participants are on file with the Securities and Exchange Commission. More information about DTC can be found at www.dtcc.com. The information contained on this Internet site is not incorporated herein by reference.
3. Purchases of Securities under the DTC system must be made by or through Direct Participants, which will receive a credit for the Securities on DTC’s records. The ownership interest of each actual purchaser of each Security (“Beneficial Owner”) is in turn to be recorded on the Direct and Indirect Participants’ records. Beneficial Owners will not receive written confirmation from DTC of their purchase. Beneficial Owners are, however, expected to receive written confirmations providing details of the transaction, as well as periodic statements of their holdings, from the Direct or Indirect Participant through which the Beneficial Owner entered into the transaction. Transfers of ownership interests in the Securities are to be accomplished by entries made on the books of Direct and Indirect Participants acting on behalf of Beneficial Owners. Beneficial Owners will not receive certificates representing their ownership interests in Securities, except in the event that use of the book-entry system for the Securities is discontinued.
4. To facilitate subsequent transfers, all Securities deposited by Direct Participants with DTC are registered in the name of DTC’s partnership nominee, Cede & Co., or such other name as may be requested by an authorized representative of DTC. The deposit of Securities with DTC and their registration in the name of Cede & Co. or such other DTC nominee do not effect any change in beneficial ownership. DTC has no knowledge of the actual Beneficial Owners of the Securities; DTC’s records reflect only the identity of the Direct Participants to whose accounts such Securities are credited, which may or may not be the Beneficial Owners. The Direct and Indirect Participants will remain responsible for keeping account of their holdings on behalf of their customers.
5. Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to Indirect Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be governed by arrangements among them, subject to any statutory or regulatory requirements as may be in effect from time to time. Beneficial Owners of Securities may wish to take certain steps to augment the transmission to them of notices of significant events with respect to the Securities, such as redemptions, tenders, defaults, and proposed amendments to the Security documents. For example, Beneficial Owners of Securities may wish to ascertain that the nominee holding the Securities for their benefit has agreed to obtain and transmit notices to Beneficial Owners. In the alternative, Beneficial Owners may wish to provide their names and addresses to the registrar and request that copies of notices be provided directly to them.
6. Redemption notices shall be sent to DTC. If less than all of the Securities within an issue are being redeemed, DTC’s practice is to determine by lot the amount of the interest of each Direct Participant in such issue to be redeemed.
7. Neither DTC nor Cede & Co. (nor any other DTC nominee) will consent or vote with respect to Securities unless authorized by a Direct Participant in accordance with DTC’s MMI Procedures. Under its usual procedures, DTC mails an Omnibus Proxy to Issuer as soon as possible after the record date. The Omnibus Proxy assigns Cede & Co.’s consenting or voting G-3
rights to those Direct Participants to whose accounts Securities are credited on the record date (identified in a listing attached to the Omnibus Proxy).
8. Redemption proceeds, distributions, and dividend payments on the Securities will be made to Cede & Co., or such other nominee as may be requested by an authorized representative of DTC. DTC’s practice is to credit Direct Participants’ accounts upon DTC’s receipt of funds and corresponding detail information from Issuer or Agent, on payable date in accordance with their respective holdings shown on DTC’s records. Payments by Participants to Beneficial Owners will be governed by standing instructions and customary practices, as is the case with securities held for the accounts of customers in bearer form or registered in “street name,” and will be the responsibility of such Participant and not of DTC, Agent, or Issuer, subject to any statutory or regulatory requirements as may be in effect from time to time. Payment of redemption proceeds, distributions, and dividend payments to Cede & Co. (or such other nominee as may be requested by an authorized representative of DTC) is the responsibility of Issuer or Agent, disbursement of such payments to Direct Participants will be the responsibility of DTC, and disbursement of such payments to the Beneficial Owners will be the responsibility of Direct and Indirect Participants.
9. DTC may discontinue providing its services as depository with respect to the Securities at any time by giving reasonable notice to Issuer or Agent. Under such circumstances, in the event that a successor depository is not obtained, Security certificates are required to be printed and delivered.
10. Issuer may decide to discontinue use of the system of book-entry-only transfers through DTC (or a successor securities depository). In that event, Security certificates will be printed and delivered to DTC.
11. The information in this section concerning DTC and DTC’s book-entry system has been obtained from sources that Issuer and Agent believe to be reliable, but neither Issuer nor Agent takes no responsibility for the accuracy thereof.
COUNCIL COMMUNICATION
CC #: 3457
File #: 0323
Title: Roseville Municipal Code Amendment - Massage Services Contact: Erika Broussard 916-746-1069 [email protected] Josh Simon 916-774-5059 [email protected]
Travis Cochran 916-774-5325 [email protected]
Meeting Date: 7/17/2024
Item #: 8.1.
RECOMMENDATION TO COUNCIL
Staff recommends that the City Council introduce for first reading an ordinance amending Chapter
9.10 of the Roseville Municipal Code regarding massage services.
Additionally, staff requests that City Council adopt a resolution, which shall be contingent upon and will only take effect if the ordinance amending Chapter 9.10 is fully adopted, establishing an application fee in the amount of $159 for an exemption certificate and a renewal fee in the amount of $39 to renew an exemption certificate and incorporating these fees into the City’s current Schedule of User and Regulatory Fees.
BACKGROUND
Chapter 9.10 of the Roseville Municipal Code regulates massage services within the city. The primary purposes for updating this chapter of the municipal code are to address ongoing challenges with illicit massage business activity and to better align the city’s regulations with state law and the city’s neighboring jurisdictions.
In 2008, the state legislature enacted the Massage Therapy Act (“Act”). The Act created a system for voluntary statewide certification of massage therapists and also created the California Massage Therapy Council (“CAMTC”), which is responsible for issuing such certifications. The Act, as originally adopted by the legislature in 2008, also established significant limitations on how massage therapists could be regulated by cities and counties.
In 2014, the state legislature amended the Act and, beneficially, returned land use and establishment authority to local jurisdictions, thereby allowing cities and counties to regulate the terms upon which massage businesses can open and operate. Under the amended Act, CAMTC still maintained responsibility for voluntary massage therapist certification, and local agencies were still somewhat restricted with respect to putting limitations on who can perform massage therapy services. However, local agencies were once again allowed to impose regulations regarding the manner in which massage businesses may be operated (e.g., business permit issuance and requirements, health and safety standards, operating hours, advertising regulations, etc.).
For purposes of this proposed ordinance, it is important to note that certification through the CAMTC to perform massage therapy services is not a requirement under the Act, and instead, has always been voluntary. Thus, local agencies have been allowed to establish less restrictive educational and training standards for individuals desiring to perform massage therapy services within that agency’s jurisdiction.
In 2017, the City Council adopted Chapter 9.10 of the Municipal Code, establishing a system to regulate the permitting and operation of massage businesses within the city. Because massage therapy certification through the CAMTC was still relatively new, the Council also adopted less restrictive requirements (less restrictive than CAMTC certification) for individuals wishing to provide massage therapy services within the city who were not CAMTC certified. The Council also desired to create an exception to CAMTC certification for individuals who may have been providing legitimate massage therapy services within the city for many years and who may have difficulty or other hardships if CAMTC certification was made a requirement for performing massage therapy services. This alternative to CAMTC certification still exists within the city’s municipal code and is generally comprised of two prongs: (1) a satisfactory background check; and (2); at least 125 hours of training in a massage therapy program from an approved school of massage. Thus, under the city ordinance enacted in 2017, individuals who receive CAMTC certification or those who meet the city’s less restrictive requirements are authorized to perform massage therapy services within the city.
Since the City’s adoption of Chapter 9.10 in 2017, many communities around Roseville have increased their requirements for operating a massage business and for providing massage therapy services. Examples of increased operating requirements include higher permitting fees, stricter record keeping requirements, and stricter penalties for businesses or individuals that violate the applicable municipal or county code. Examples of increased requirements for providing massage therapy services include implementing a CAMTC certification requirement and/or bolstering the educational and training requirements that are necessary if CAMTC certification is not required. Surrounding agencies have also increased enforcement efforts during this time, which has resulted in the suspension or revocation of a massage business permit for businesses operating in those areas.
According to information recently provided to staff by CAMTC, there are approximately 255 cities and counties in California that require – either through ordinance or policy – individuals performing massage therapy services to obtain CAMTC certification. CAMTC further informed staff that approximately 16 other cities and/or counties are in the process of or are planning to require CAMTC certification as the threshold for providing massage therapy services. The cities of Rocklin, Lincoln, Citrus Heights, Folsom, Yuba, Marysville, Elk Grove, and Rancho Cordova all require CAMTC certification for massage therapists. While the cities of Auburn and Sacramento do not require CAMTC certification, they require that massage therapists complete a massage therapy program from an approved school with 200 and 250 hours of classroom instruction, respectively (75+ hours more than Roseville’s current requirement).
The increased requirements for operating a massage business and providing massage therapy services in neighboring jurisdictions, in addition to increased enforcement by these agencies, has made it more challenging to operate in those areas. This, in turn, has led many massage businesses and massage therapists to relocate to or look for employment in Roseville, where the city’s regulations are less strict and the costs of doing business are lower. While the city welcomes legitimate business enterprises that wish to operate within its borders, one of the unintended consequences of the city’s existing ordinance is that many less-than-legitimate businesses and massage therapists who are unable to obtain permits or perform massage therapy services in other jurisdictions have relocated to and are operating in Roseville. This includes businesses and massage therapists who actively engage in illicit massage activity and routinely violate the city’s municipal code. Staff estimates there are approximately 150-200 massage establishments and/or message therapists acting as independent contractors within the city, and approximately 29 of those establishments are engaged in some type of illicit massage activity.
One of the primary changes being proposed is requiring that all massage therapists obtain certification from the CAMTC (the massage licensing authority in California) in order to provide massage therapy, with only a very limited exception to grandfather in some existing massage therapists in the city who are in good standing. Many of the other changes being proposed are to add clarity and consistency to the massage business permit application process and requirements, which will make administration and tracking of applications and permits more efficient. The pending ordinance also clarifies and strengthens operational requirements for massage businesses and massage therapy services, and also increases potential penalties for noncompliance. Staff believes these changes will be instrumental in helping to combat illicit massage business activity and other undesired businesses practices sometimes utilized by massage businesses within the city.
A more comprehensive summary of the proposed changes to Chapter 9.10 are set forth below:
Section 9.10.030(B): Requires that any person providing massage services within the city hold a valid certificate from the CAMTC or obtain an exemption from the city.
9.10.030(C): Establishes a “grace period” for the requirement that any person providing massage services be CAMTC certified or obtain an exemption from the city. Massage businesses will have until December 31, 2024 to comply.
9.10.050(C)(4): Clarifies that if a proposed massage business will be operated at a premises that is leased, the owner of the premises has knowledge that massage services are being provided.
9.10.050(C)(11): Requires a massage business permit applicant to submit the names and birthdays of every person who will be providing massage therapy services.
9.10.080(B)(9): Prohibits any new massage businesses from operating in the same location of massage business previously closed within the past 3 years due to criminal activity.
9.10.110: Clarifies that an appeal to the denial of a massage business permit heard by the City Manager or his designee is not a public meeting subject to the Brown Act.
9.10.160: Prohibits any person from obtaining a massage business permit if they had their prior massage business permit revoked or suspended within the past 3 years. This section also prohibits any person denied a massage business permit from reapplying within 2 years after the denial unless the applicant can show a material change in their situation justifying issuance of a permit.
9.10.170: Establishes an exemption to the requirement that all persons providing massage services be CAMTC certified. To qualify for this exemption and be deemed to be an “exempt therapist” pursuant Chapter 9.01, a person must: (1) have worked as a massage professional in the city, either pursuant to their own massage business permit or under the massage business permit of another, on an ongoing basis for at least three years prior to August 1, 2024; and (2) holds a diploma or certificate of graduation from a school of massage that requires a resident course of study in massage therapy of not less than 125 hours.
9.10.200(F): Requires massage businesses to report the hiring or termination of any massage therapist (both employees and independent contractors) to the police department within 7 days of the hiring or termination.
9.10.200(H): Clarifies that massage businesses are open for inspection by authorized city officials at any time during normal businesses hours.
9.10.220(H): Clarifies that massage businesses must maintain certain business records and that such records are open to inspection by authorized city officials.
9.10.270: Specifies that any violation of Chapter 9.10 is a misdemeanor. This does not require that the city charge every violation as a misdemeanor, and the city still has discretion to pursue administrative remedies. However, specifying in the municipal code that violations of Chapter 9.10 are misdemeanors will allow the city to pursue increased fine amounts in the future.
Massage businesses and massage therapists that violate the municipal code and engage in unlawful and undesired businesses practices have become a significant concern. These actors are taking advantage of the city’s pro-business environment that fostered the growth of legitimate massage businesses, as well as Council’s intention to allow those well-established and reputable massage therapists to continue to operate within the city even after the Act was adopted and CAMTC certification became more prevalent. If left unabated, these issues reduce property values, encourage crime, support human trafficking, and adversely affect business development and overall quality of life. The proposed changes to Chapter 9.10 will make it harder for massage businesses to engage in illicit, unlawful, and undesired behavior, and will also allow the city to abate these issues more proactively and efficiently.
To avoid any surprises within the business community, City staff has also taken steps to notify the business community of the proposed changes and to gauge their buy-in. Staff notified the Roseville Area Chamber of Commerce regarding the proposed changes to Chapter 9.10 and invited the Chamber to provide feedback. City staff also mailed a letter to all massage business permit holders within the city notifying them of the proposed changes (particularly, the requirement for CAMTC certification and the grace period for compliance) and inviting them to contact the city with any questions or feedback. A copy of the template letter is included herewith for reference. Of the responses to the letter staff has received, many have been very positive. Others expressed some concerns, but after explaining the grandfather provisions and grace period for compliance, these individuals appeared much more comfortable with the proposed changes.
FISCAL IMPACT
There is no fiscal impact associated with the proposed ordinance, as massage business enforcement is already budgeted. The recommended exemption certificate application fee and renewal fee were developed to recover the applicable processing costs.
ENVIRONMENTAL REVIEW
The California Environmental Quality Act (CEQA) only applies to projects which have the potential to cause a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. (CEQA Guidelines §15061(b)(3)).
CITY COUNCIL STRATEGIC PLAN/OVERARCHING GOALS
Goal A – Maintain a safe and healthy community
Goal F – Deliver exceptional City services
Respectfully Submitted,
Travis Cochran, Deputy City Attorney
Josh Simon, Police Captain
_____________________________
Dominick Casey, City Manager
ATTACHMENTS:
Description
OrdinanceAmending Chapter 9.10
Resolution 24-271
template Notice Letter
ORDINANCE NO. ____
ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ROSEVILLE AMENDING CHAPTER 9.10 OF TITLE 9 OF THE ROSEVILLE MUNICIPAL CODE REGARDING
MASSAGE SERVICES
THE CITY OF ROSEVILLE ORDAINS:
SECTION 1. Chapter 9.10 of Title 9 of the Roseville Municipal Code is hereby amended to read as follows:
Chapter 9.10
MASSAGE SERVICES
Sections:
9.10.010. Purpose and intent.
9.10.020. Definitions.
9.10.030 Requirements for massage businesses.
9.10.040 Advertisements.
9.10.050 Massage business permit—Application.
9.10.060 Term of massage business permits.
9.10.070 Massage business permit fee.
2 9.10.080 Massage business permit issuance—Investigation—Grounds for denial.
9.10.090 Appeal from police chief determination—Permit conditions and denials.
9.10.100 Hearing—Scheduling.
9.10.110 Hearing—Notice.
9.10.120 City manager action.
9.10.130 Suspension and revocation—Notice.
9.10.140 Grounds for suspension and revocation of an active permit.
9.10.150 Appeal from police chief determination—Permit renewals, suspensions and revocations.
9.10.160 New permit application after denial, revocation or suspension.
9.10.170 Limited exemption to CAMTC certification for massage professionals.
9.10.170180 Minors.
9.10.180190 Health requirements.
9.10.190200 Operating requirements for massage businesses—General conditions.
9.10.200210 Operating requirements for massage businesses—Facilities.
9.10.210220 Operating requirements for massage businesses—Operations.
9.10.220230 Operating requirements for mobile massage services.
9.10.230240 Display of permits and certifications.
3 9.10.240250 Permit—Non-transferable, change of address or contact information.
9.10.250260 Exemptions.
9.10.260270 Criminal penalties.
9.10.270280 Civil injunction.
9.10.280290 Administrative remedies.
9.10.290300 Cumulative remedies, procedures and penalties.
9.10.300310 Separate offense for each day.
9.10.310320 Severability.
9.10.010. Purpose and intent.
It is the purpose and intent of the City of Roseville to comply with California law while also protecting the health, safety and welfare of the inhabitants of the city through the enactment of standards of professional competence and operational requirements which promote the therapeutic use of massage therapy.
This chapter is not intended to be exclusive and compliance with city regulations will not excuse noncompliance with any state or local laws or regulations that are uniformly applied to other professional or personal services businesses including, without limitation, all zoning applications; business license regulations; building, fire, electrical, and plumbing codes; and health and safety laws and regulations applicable to professional or personal services businesses. 4 The California State Legislature implemented uniform statewide regulations pertaining to massage therapy and massage businesses (enacted by AB 1147 in 2014 and extended by AB 2194 in 2017 to January 1, 2021, by AB 1537 to January 1, 2023, and by AB 2687 to January 1, 2027) now codified in Chapter 10.5 of Division 2 of the California Business and Professions Code (commencing at Section 4600 et seq.), hereinafter referred to as the “Massage Therapy Act,” which created a statewide system for issuing massage worker permitstherapist certification, thereby preempting certain local permitting systems and requirements for those that are certified.
The statewide permitting system is administered by the California Massage Therapy Council (“CAMTC”).
The Massage Therapy Act allows local jurisdictions to enforce certain business licensing and to establish reasonable health and safety requirements for massage businesses, not in conflict with the Massage Therapy Act. To enable the city to carry out the local regulation and review of massage businesses found in the Massage Therapy Act, the city must maintain massage business regulations in the Roseville Municipal Code.
The city wishes to promote the ethical practice of massage therapy as an important healing art and to prevent and discourage the misuse of massage therapy as a front for prostitution activities in violation of the law, including, but not limited to, subdivisions (a) and (b) of Section 647 of the California Penal Code, as may be amended.
The adoption of qualification standards for massage service providers based upon the CAMTC certification program established under the Massage Therapy Act and Thethe enhancement of the city’s reasonable regulations on the operation of massage businesses and the 5 conduct of all massage service providers will serve to reduce the risk of potentially injurious and illegal activity.
This chapter establishes a local regulatory system for massage businesses to operate within the city.
9.10.020. Definitions
The following words and phrases, whenever used in this chapter, shall be construed as defined in this section:
“Applicant” means any person that seeks a massage business permit as required by this chapter.
“Approved school of massage” means any school or institution of learning which has for its purpose the teaching of the theory, method, profession, or work of massage therapists, which school requires a resident course of study of not less than 125 hours to be given before the student shall be furnished with a diploma or certificate of graduation from such school or institution of learning showing the successful completion of such course of study. Schools offering correspondence course(s) not requiring actual attendance of class shall not be deemed recognized schools. Schools not approved by the state of California under the provisions of Section 4601(a) of the California Business and Professions Code or an equivalent out of state school shall not be deemed recognized schools.
“California massage therapy council (CAMTC)” means the California Massage Therapy Council created pursuant to Business and Professions Code Section 4602(a). 6 “Certificate” means the certificate, or conditional certificate, issued by the CAMTC to massage therapists, pursuant to Business and Professions Code Section 4601(h) and to massage practitioners pursuant to subdivision 4601(g), or 4604.1(a), or 4604.2(c) that entitles the holder to practice massage. When used in this chapter, “certification” means a person who has an active and valid CAMTC certificate.
“City” means the City of Roseville.
“Compensation” means the payment, loan, advance, donation, contribution, deposit, or gift of money or anything of value.
“Convicted” means having entered a plea, or receiving a verdict, of guilty. “Convicted” also includes having entered a plea of nolo contendere. “Exempt therapist” means an individual granted an exemption from the CAMTC certification requirement pursuant to this chapter and is issued an exemption certificate. “Independent contractor” means a person who contracts to do work for another person according to his or her own processes and methods; the contractor is not subject to another’s control except for what is specified in a mutually binding agreement for a specific job. “Manager” means a person who supervises, inspects, directs, organizes, controls, or in any other way is responsible for or in charge of the conduct of the activities within a massage business.
“Massage” or “massage therapy” means the systematic and scientific manipulation and treatment involving the external manipulation or pressure of soft tissue for therapeutic purposes.
Massage therapy includes any method of pressure on or friction against, or stroking, kneading, 7 rubbing, tapping, pounding, vibrating, or stimulating of the external surfaces of the body with hands, apparatus or appliances, with or without such supplementary aids as rubbing alcohol, liniments, antiseptics, oils, powder, creams, lotions, ointment, or other similar preparations.
Massage therapy scope of practice does not include diagnosis, prescribing of drugs or medicines, spinal or other joint manipulations, nor any service or procedure for which a license to practice medicine, chiropractic, physical therapy, acupuncture, or podiatry is required by law. “Massage establishmentbusiness” means a fixed place of business, premises, facility, establishment, or membership club where any person gives, performs or administers massage for compensation.
“Massage professional” means any person who performs or administers to another person massage for compensation. Massage professionals shall include massage practitioners and massage therapists.
“Mobile massage services” means services in which a massage professional gives, performs or administers to another person a massage for compensation at a location other than a massage establishmentbusiness permitted pursuant to this chapter. “Owner” means any and all owners of a massage business including any of the following persons:
1. A sole provider as defined in subsection R of this section;
2. Any general partner of a general or limited partnership that owns a massage business;
8 3. Any person who has an ownership interest in a corporation that owns a massage business;
4. Any person who is a member of a limited liability company that owns a massage business;
5. A massage professional acting as an independent contractor as defined in subsection H of this section;
6. All owners of any other type of business association that owns a massage business.
“Permit” means the massage business permit.
“Person” means any natural person, individual, group, firm, association, partnership, corporation, company, sole proprietorship, or any other legal entity. “Police chief” means the chief of police of the City of Roseville and his or her designee. “Sole provider” means a massage business where the owner owns 100 percent of the business, is the only person who provides massage services for compensation for that business, and has no other employees or independent contractors.
9.10.030 Requirements for massage businesses.
A. It is unlawful for any person to own, conduct, operate or maintain a massage business within the city without having a valid massage business permit issued pursuant to this chapter. Massage business permits shall also be required of any permanent or semi-permanent seated massage or reflexology installation. Applicants who have an existing massage permit in 9 good standing at the time of the enactment of this chapter shall submit an application for a massage business permit within 60 days of the enactment of this chapter.
B. It is unlawful for any person to own, conduct, operate or maintain a massage business within the city unless all persons providing massage services for the massage business each hold a diploma or certificate of graduation from an approved school of massage, which school requires a resident course of study of not less than 125 hours to be given before the student shall be furnished with a diploma or certificate of graduation from such school showing the successful completion of such course of studyat the massage business each hold an active and valid certificate from the CAMTC as a massage practitioner or massage therapist or qualify as an exempt therapist. A massage business permit shall in no way be construed to allow any person to perform massage services within the city without either an active and valid certificate from the CAMTC or qualifying as an exempt therapist.
C. Each massage business holding an active and valid city-issued massage business permit pursuant to this chapter, which employs or retains any massage professional who does not have an active and valid certificate from the CAMTC as a massage practitioner or massage therapist or qualify as an exempt therapist pursuant to this chapter, will have until December 31, 2024, to comply with the requirements of paragraph (B) of this section.
9.10.040 Advertisements.
It is unlawful for any person to advertise massage services within the city without complying with the requirements provided for in this chapter.
9.10.050 Massage business permit—Application.
10 A. An application for a massage business permit shall be made by the owner, as defined in Section 9.10.020. Such application shall designate the person or persons who will be the manager, if applicable, of the premises.
B. All applications for permits shall be filed with the police chief on such forms as he or she may prescribe, and shall contain such information as the police chief shall reasonably deem necessary for the proper processing of the application. The application for a permit does not authorize the operation of a massage business unless and until such permit has been granted.
C. Any application for a massage business permit shall contain the following information:
1. The full true name and any other names used by the applicant. If the applicant is:
a. An individual, the individual shall state his or her full legal name. b. A partnership, the partnership shall state its complete name, address, and the names of all partners, whether the partnership is general or limited, and a copy of the partnership agreement, if any. In addition, the application must designate the person who will provide all information required by this chapter.
c. A corporation, the corporation shall state its complete name, the date of its incorporation, evidence that the corporation is in good standing under the laws of California, the names and capacities of all officers and directors, and the name of the registered corporate agent and the address of the registered agent for service of process. 11 In addition, the application must designate the person who will provide all information required by this chapter.
2. The true, full and precise name under which the massage business is to be conducted, as well as any and all names under which the massage business is to be advertised.
3. The address where the massage business is to be located and all telephone numbers for the massage business.
4. The name and address of the owner of the real property upon or in which the proposed massage business is to be conducted and, if applicable, the lessor. In the event the applicant is not the legal owner of the property, the application must be accompanied by a copy of the lease containing specific language from the owner of the property acknowledging that a massage business will be located on the property. If the lease does not contain such language, then the applicant shall submit other documentation demonstrating the property owner’s knowledge and approval of the operation of a massage business on the property.
5. The current residential address and telephone number of the owner, as well as the manager (if the manager is a different person) who will be principally in charge of the operation of the massage business, and the previous residential addresses and business addresses within the previous five years, if any.
6. The applicant’s height, weight, eye color, and hair color. 12 7. Written proof to the satisfaction of the city that the applicant is at least 18 years of age.
8. The applicant’s business, occupation or employment history for the five years immediately preceding the date of the application.
9. The massage or similar business license history of the applicant, including whether such person, previously operating in this city or another city, county or state under a certificate, license or permit, has had such certificate, license or permit denied, revoked or suspended; and the reasons and dates for any such denial, revocation or suspension.
10. All criminal convictions, except minor traffic violations.
11. Proof of diplomas or certificates of graduation from an approved school of massage of all proposed massage professionals and other employees or independent contractors who are or will be employed or retained in the massage businessA complete and current list of the names and birthdates of all proposed massage professionals and other employees or independent contractors who are or will be employed or retained in the massage business, if known, and information demonstrating whether each massage professional is operating as an employee or independent contractor. If not known at the time of submission of the application, the applicant shall provide the required information no later than ten calendar days prior to opening for business.
12. A clear, color photocopy of a valid, government issued identification card for each applicant.
13 13. A complete set of fingerprints (LiveScan) for each applicant. The applicant shall be responsible for payment of any fingerprinting fees. Applicants in good standing as determined by the police chief are exempt from this requirement.
14. If the owner will provide massage services, then either the owner’s original CAMTC certificate and original CAMTC photo identification card, or the owner’s exemption certificate.
1415. Authorization for the city, its agents, and employees to seek verification of the information contained in the application.
1516. Such other identification and information as the police chief may reasonably require in order to discover the truth of the matters herein specified and as required to be set forth in the application.
1617. A current and valid policy of insurance issued by an insurance company authorized to do business in the state of California evidencing that the applicant is insured under a liability insurance policy providing minimum coverage of $1,000,000 for injury or death to any one person arising out of the operation of any massage business and the administration of a massage. Proof of insurance must be provided within 30 days of issuance of a massage business permit.
1718. Proof of current City of Roseville business license for the massage business.
14 1819. A statement in writing and dated by the person providing the information, that he or she certifies under penalty of perjury, that all information contained in the application is true and correct.
D. In the event that the police chief requires further information, or deems the application incomplete, the applicant shall be notified in writing of the required information within twenty 20 calendar days of submitting the application. Additional information shall be provided within fifteen 15 calendar days of the date of the request, after which time the application shall be deemed abandoned. Abandoned and incomplete applications shall be denied.
9.10.060 Term of massage business permits.
A permit for a massage business shall be issued for a term of two years. It may be renewed by the police chief for additional two-year periods upon application by the permittee unless the permit is suspended or revoked in accordance with Section 9.10.140. An application for renewal shall be accompanied by a nonrefundable fee as established by resolution adopted by the city council, as amended from time to time.
During the term of a permit, if the permittee has any change in the information submitted on the original or any renewal application, the permittee shall notify the chief of police in writing of any such change within fourteen calendar days of the change.
9.10.070 Massage business permit fee.
Every application for a massage business permit shall be accompanied by a nonrefundable fee as established by resolution adopted by the city council, as amended from time to time. The application and fee required pursuant to this section shall be in addition to any 15 other license, permit or fee required by federal, state or local law. Applicants who have an existing massage permit in good standing at the time of the enactment of this chapter are exempt from this fee requirement.
9.10.080 Massage business permit issuance—Investigation—Grounds for denial.
A. Upon receipt of a completed massage business permit application, the police chief shall conduct an investigation, including an inspection of the massage establishmentbusiness, if applicable, to ascertain whether a permit should be issued as requested. The police chief shall, within forty-five 45 calendar days of receipt of the completed application, approve, condition or deny the permit.
B. The police chief may deny a permit provided for in this chapter if he or she finds any of the following:
1. The applicant, any owner, or any person directly engaged, employed, or retained in the massage business, has:
a. Been convicted of a violation of any provision of law pursuant to which a person is required to register under the provisions of Penal Code Section 290, or conduct in violation of California Penal Code Sections 266h, 266i, 314, 315, 316, 318, subsections (b) or (d) of Penal Code Section 647, Penal Code Sections 653.22 or 653.23, as may be amended, or convicted of an attempt to commit or conspiracy to commit any of the above-mentioned offenses, or any other crime involving dishonesty, fraud, deceit, or moral turpitude or when the prosecution accepted a plea of guilty or nolo contendere to a charge of a violation of California Penal Code Sections 415 or 602, as may be amended, or any lesser included or related offense, in satisfaction of, or as a substitute for, any of 16 the previously listed crimes, or any crime committed while engaged in the ownership of a massage business or the practice of massage.
b. Been convicted of a violation of Health and Safety Code Section 11550 or any offense involving the illegal sale, distribution or possession of a controlled substance specified in Health and Safety Code Sections 11054, 11055, 11056, 11057 or 11058, as may be amended.
c. Been convicted of any offense in any other state or U.S. territory, which is the equivalent of any of the abovementioned offenses.
d. Been subjected to a permanent injunction against the conduction or maintaining of a nuisance pursuant to Sections 11225 through 11235 of the California Penal Code, as may be amended, or any similar provisions of law in a jurisdiction outside the state of California.
e. Committed an act in another jurisdiction which, if committed in this state, would have been a violation of law and which, if done by a permittee under this chapter, would be grounds for denial, suspension or revocation of the permit. f. Committed any act, which, if done by a permittee, would be grounds for suspension or revocation of a permit.
g. Had a massage business permit or massage therapist/practitioner permit or other similar license or permit denied, suspended or revoked for cause by the city, any state, local agency or other licensing authority, or has had to surrender a permit or license 17 as a result of pending criminal charges or in lieu of said permit or license being suspended or revoked.
2. The applicant has knowingly made any false, misleading or fraudulent statement of material fact in the application or in any documentation required to be filed in conjunction with said application.
3. The application does not contain all the information required by Section
9.10.050 and applicant fails to complete the application after having been notified of any additional information or documents required.
4. The applicant is not at least 18 years of age.
5. The massage establishmentbusiness, as proposed, does not comply with all applicable laws, including, but not limited to, health, zoning, fire, building, and safety requirements and standards imposed by the laws of the state and the ordinances of the city, including this chapter.
6. The applicant failed to obtain all the necessary approvals from the necessary city departments or other governmental agencies, including, but not limited to, the city’s development services department.
7. The applicant has refused to or cannot meet the requirements established by this code.
8. The required fee(s) have not been paid and/or any other requirements of this chapter have not been satisfied within the time specified. 18 9. The massage establishmentbusiness is proposed in the same location in which a massage establishmentbusiness has previously been closed due to criminal activity within one yearthree years prior to the date of the application.
C. Notwithstanding subsection B, the applicant shall not be denied a permit solely on the basis that he or she has been convicted of a felony if he or she has obtained a certificate of rehabilitation under Section 4852.01 of the California Penal Code, as may be amended, or on the basis that he or she has been convicted of a misdemeanor not specified in Section
9.10.080(B)(1)(a), (b), or (c) of this chapter.
D. If the police chief, upon completion of the investigation, determines the applicant does not fulfill the requirements set forth in this chapter, the police chief shall deny the application by dated written notice to the applicant. The applicant shall have the right of appeal as set forth in Section 9.10.090.
E. Upon issuance of any permit, the police chief may limit the permit by any condition reasonably necessary to preserve the intent and purpose of this chapter. Such permit limitations shall be in writing and provided to the permittee.
9.10.090 Appeal from police chief determination—Permit conditions and denials.
The police chief shall cause a written notice of his or her decision to issue, condition or deny a permit to be mailed to the applicant by certified U.S. mail, postage prepaid, return receipt requested. An applicant aggrieved by the police chief’s decision to condition or deny a permit may appeal such decision to the city manager, or his or her designee, by filing a written notice with the city clerk within fourteen 14 calendar days of the applicant’s receipt of the police chief’s 19 written notice of decision. If an appeal is not filed within such time, the police chief’s decision shall be final.
9.10.100 Hearing—Scheduling.
Upon appeal to the city manager, or his or her designee, the permit application shall be scheduled by the city clerk for a public hearing within forty-five 45 calendar days, or as soon thereafter as is practicable.
9.10.110 Hearing—Notice.
A. The hearing shall be noticed in accordance with the Ralph M. Brown Act.
B. Notice of hearing shall be given by the posting of notice on the premises where the activity is to be conducted for a period of not less than five calendar days prior to the date of the hearing. In addition, a copy of the notice of hearing shall be mailed to the applicant at least five calendar days in advance of the hearing.
C. The city clerk may give such additional notice of hearing as it deems appropriate in a particular case.
9.10.120 City manager action.
Following a hearing, the city manager, or his or her designee, may grant the permit subject to such conditions as it deems reasonable under the circumstances, or it may deny the issuance of the permit if it finds any of the grounds specified in Section 9.10.080(8B). The decision of the city manager, or his or her designee shall be final.
9.10.130 Suspension and revocation—Notice.
20 Any permit issued under the terms of this chapter may be suspended immediately by the police chief, and subsequentlyor revoked by the police chief after a hearing, in writing upon determining that any of the grounds specified in Section 9.10.140 exist. No permit shall be revoked or suspended by virtue of this section until a hearing has been held by the police chief.
Written notice of the time and place of such hearing shall be served upon the person to whom the permit was granted at least five calendar days prior to the date set for such hearing. Such notice shall contain a brief statement of the grounds to be relied upon for revoking or suspending such permit. Service of notice may be either by personal delivery to the person to be notified, or by depositing it in the U.S. mail in a sealed envelope, postage prepaid, addressed to the person to be notified at his or her address as it appears in his or her application for a permit. The hearing must be held within ten 10 calendar days of the date of service of notice. During any suspension period resulting from the police chief’s immediate suspension of the permit pursuant to this section, the permit shall be temporarily null and void, and the business operations and all services provided by such massage business shall be prohibited until a hearing has been held by the police chief.
9.10.140 Grounds for suspension and revocation of an active permit.
Any permit issued under the terms of this chapter may be suspended or revoked if any permittee, his or her agent, employee, or independent contractor:
A. Has demonstrated a pattern of violating or failing to comply with the terms and conditions of the permit.
B. Does any act which violates any of the grounds for denial of the permit. 21 C. Has demonstrated a pattern of violating any other provision of this chapter or any federal, state or local law or regulation relating to his or her permitted activity.
D. Has demonstrated a pattern of engaging in or permitting misconduct substantially related to the qualifications, functions or duties of the permittee.
E. Conducts the massage business in a manner contrary to the peace, health, or safety of the public.
F. Has knowingly made any false, misleading or fraudulent statement of material fact in the application or in any documentation required to be filed in conjunction with said application or has omitted material information from the application or in any documentation required to be filed in conjunction with said application.
G. Has been convicted of any of the crimes identified in Section 9.10.080(B)(1)(a), (B)(1)(b) or (B)(1)(c).
H. Employs, retains, or otherwise allows any person to provide massage services without: (1) an active and valid certificate from the CAMTC as a massage practitioner or massage therapist; or (2) qualifying as an exempt therapist and having a valid exemption certificate.
I. Engages in unprofessional conduct, including, but not limited to, the following:
1. Engaging in sexually suggestive advertising related to massage services.
2. Engaging in any form of sexual activity on the premises of a massage establishmentbusiness where massage is provided for compensation. 22 3. Engaging in sexual activity while providing massage services for compensation.
4. Practicing massage on a suspended or revoked permit.
5. Practicing massage without a permit.
6. Providing massage of the genitals or anal region.
7. Providing massage of the female breasts without the written consent of the person receiving the massage and a referral from a licensed California health provider.
8. Dressing while engaged in the practice of massage for compensation, or while visible to clients in a massage establishmentbusiness, in any of the following:
a. Attire that is transparent, see-through, or substantially exposes the massage professional’s undergarments.
b. Swim attire, if not providing a water based massage modality approved by the CAMTC.
c. A manner that exposes the massage professional’s breasts, buttocks, or genitals.
d. A manner that constitutes a violation of Section 314 of the California Penal Code, as may be amended.
e. A manner that is otherwise deemed by the CAMTC to constitute unprofessional attire based on the custom and practice of the profession in California. 23 9.10.150 Appeal from police chief determination—Permit renewals, suspensions and revocations.
Any permittee aggrieved by the decision of the police chief in refusing to renew, suspending or revoking a permit may, within fourteen 14 calendar days from the issuance of the police chiefs written decision, appeal to the city manager, or his or her designee, by filing a written notice with the city clerk. During the pendency of the appeal to the city manager, or his or her designee, the permit shall remain in effect. If such appeal is not filed within fourteen 14 calendar days, the decision of the police chief shall be final. If an appeal is filed in a timely manner, the city manager, or his or her designee shall, after notice as provided in Section
9.10.110, hold a hearing on the appeal, and deny the renewal for any of the grounds specified in Section 9.10.080 or suspend or revoke the permit for any of the grounds specified in Section
9.10.140. The city manager’s, or his or her designee’s decision shall be final.
9.10.160 New permit application after denial, revocation or suspension.
If a massage business permit is suspended or revoked pursuant to this chapter, no permit shall be granted to the former permittee to conduct or carry on a massage business within onethree years after such suspension or revocation. Furthermore, when an application for a permit is denied for cause, no new application for a permit from the same person shall be accepted within onetwo years after denial unless the applicant can show a material change in his or her situation that would justify the issuance of such permit.
9.10.170 Limited exemption to CAMTC certification for massage professionals.
A. The city recognizes that some massage professionals currently practicing within the city may not meet the current requirements set forth by the CAMTC due to changes in 24 educational or other requirements, particularly changes in requirements concerning hours of schooling, although the person has been in practice as a massage professional for a significant period. The city will therefore allow individuals who were working within the city as a massage therapist prior to August 1, 2024, and who meet the requirements of this section to continue to practice massage as a massage professional under this exemption without certification from the CAMTC.
B. An individual seeking this exemption must demonstrate each of the following to the satisfaction of the police chief or his or her designee.
1. Evidence that the individual worked as a massage professional in the city, either pursuant to their own massage business permit or under the massage business permit of another, on an ongoing basis for at least three years prior to August 1, 2024.
2. Evidence that the individual holds a diploma or certificate of graduation from a school of massage that requires a resident course of study of not less than one hundred twenty-five (125) hours to be given before the student shall be furnished with a diploma or certificate of graduation from such school showing the successful completion of such course of study. Schools offering correspondence course(s) not requiring actual attendance of class and/or schools not approved by the state of California under the provisions of Section 4601(a) of the California Business and Professions Code or an equivalent out of state school shall not be deemed acceptable for purposes of this section.
C. An individual granted an exemption from the CAMTC certification requirement pursuant to this section shall be referred to as an “exempt therapist”. An exempt therapist will be issued an exemption certificate that includes a statement from the police chief that the person 25 met the requirements of this exemption. Any individual granted an exemption certificate is required to display, in the same manner this chapter requires the display of CAMTC certification, the exemption certificate showing that the person met the requirements of this exemption.
D. An exemption from the CAMTC certification requirement pursuant to this section is valid for two years from the date of issuance of the exemption certificate and must be renewed every two years thereafter. Any exempt therapist who allows their exemption certificate to expire shall not be eligible to renew such exemption certificate or operate as a massage professional under this exemption. Failure to obtain a renewal on or before the date an existing exemption certificate expires shall make the individual ineligible for a continued exemption.
E. The city may establish a nonrefundable fee by resolution adopted by the city council, as amended from time to time, to recover costs associated with initial applications and annual renewals of an exemption certificate.
F. Individuals who do not submit an initial application on or before December 31, 2024, for the exemption described in this section shall be ineligible to qualify for the exemption.
G. An exempt therapist is subject to and shall comply with all the requirements of this chapter, except for the CAMTC certification requirements.
9.10.170180 Minors.
It is unlawful for any person to employ or retain anyone under the age of 18 years as a massage professional. It is unlawful for any person under the age of 18 to perform services as a massage professional.
9.10.180190 Health requirements.
26 A. It shall be the responsibility of a massage professional to refrain from providing massage services, if the massage professional has reason to believe that he or she has any communicable or contagious disease, any open wound of any nature, or any other condition which may be hazardous to the health of a client. Any massage professional having reason to believe that he or she may have any such disease or condition shall promptly notify his or her employer, or, if the massage professional is an independent contractor, to notify the person with whom he or she has been retained, and it shall thereafter be unlawful for the employer or owner to utilize the services of the massage professional unless the disease or condition is no longer present.
B. Whenever the manager has reason to suspect that a massage professional has a communicable or contagious disease, he or she shall require the suspected individual to have an examination by a licensed physician. If the massage professional is found to have a disease or condition which may be hazardous to the health of a client, his or her employment or services rendered under contract shall be discontinued until reinstatement as a massage professional is approved in writing by a licensed physician certifying that the massage professional is free from communicable or contagious diseases.
9.10.190200 Operating requirements for massage businesses—General conditions.
A. It is unlawful and a public nuisance to own, conduct, control, or operate a massage establishmentbusiness unless the owner or manager designated in the application for the massage establishmentbusiness is present within such massage establishmentbusiness at all times.
27 B. An owner and/or manager shall be responsible for the conduct of all massage professionals while they are on the massage establishmentbusiness premises. Any act or omission of any massage professional, whether an employee or an independent contractor, constituting a violation of the provisions of this chapter shall be deemed an act or omission of the owner or manager for the purposes of determining whether the massage business permit shall be revoked, suspended, conditioned, denied, or renewed.
C. No massage professional shall provide massage of the genitals or anal region of any client or the breasts of any female client without the written consent of the female client and a referral from a licensed California health care provider, nor shall any owner or manager of a massage business allow or permit such massage to the above specified areas. A massage shall not be given and no client shall be in the presence of a massage professional, independent contractor, owner, manager, or other employee of a massage business unless the client’s genitals and the female client’s breasts are fully covered by a non-transparent covering.
D. The hours of operation of the massage establishmentbusiness must be posted in the front window, or on the door if there is no front window, and clearly visible from outside the establishmentmassage business.
E. The owner or manager shall immediately provide to the police chief upon request the names and valid photo identification of all employees and independent contractors, the date of hire or termination, and proof of a diploma or certificate of graduation as provided in Section
9.10.050(C)(11)The owner and/or manager shall ensure that the CAMTC certificate or exemption certificate for each on-duty massage professional is conspicuously displayed, visible from the entrance and/or reception and waiting area of the massage business, and that each 28 massage professional has at his or her immediate disposal the CAMTC photo identification card or copy of the applicable exemption certificate at all times when working in the massage business. Such identification shall be provided upon request by a member of the public, the CAMTC, a member of law enforcement, or a city official.
F. No owner and/or manager shall employ or retain any person as a massage professional who does not have an active and valid CAMTC certificate or exemption certificate.
Every owner or manager shall report to the chief of police any change of employees or independent contractors, whether by new or renewed employment, discharge or termination, on the form and in the manner required by the chief of police. The owner or manager shall provide the name of the employee or contractor and the date of hire or termination within seven calendar days of the date of hire or termination.
FG. All owners, managers, massage professionals, other employees and independent contractors of the massage business shall be fully clothed at all times while furnishing massage services. No such individual shall dress while engaged in the practice of massage for compensation in any of the following:
1. Attire that is transparent, see-through, or substantially exposes the individual’s undergarments.
2. Swim attire, if not providing a water-based modality approved by the CAMTC.
3. A manner that exposes the individual’s breasts, buttocks, or genitals. 29 4. A manner that constitutes a violation of Section 314 of the Penal Code, as may be amended.
5. A manner that is otherwise deemed by the CAMTC to constitute unprofessional attire based on the custom and practice of the profession in California.
GH. No massage business shall operate as a school of massage, or use the same facilities as that of a school of massage.
HI. The massage establishmentbusiness shall be open to inspection by the police chief, the fire chief, the building official, any enforcement officer (as defined by Section
2.50.020 of the Roseville Municipal Code) or their authorized representatives during normal business hours of the massage establishmentbusiness, without a search or inspection warrant, to ascertain compliance with the provisions of this chapter.
9.10.200210 Operating requirements for massage businesses—Facilities.
All owners and managers shall comply with the following operating requirements for massage businesses as well as any other conditions specified by the police chief:
A. Structure. Massage businesses shall be carried on in a permanent building. The owner shall obtain all required building permits per the California Building Code (“CBC”).
B. Signs. Any signs shall be in conformance with the current sign ordinances of the city. Each owner and/or manager shall post and maintain, adjacent to the main entrance and the front of the business, a readable informational sign identifying the premises as a massage establishmentbusiness.
30 C. Services List. Each owner and/or manager shall post and maintain a list of services available and the cost of such services in the lobby of the massage establishmentbusiness in a conspicuous public place. The services shall be described in English.
No owner or manager shall permit, and no person employed or retained by the massage business shall offer to perform, any services or charge any fees other than those posted.
D. Lighting. The interior of the massage establishmentbusiness shall maintain adequate illumination to make the conduct of employees, independent contractors, and clients within the premises readily discernible. No strobe or flashing lights shall be used.
E. Ventilation. In each massage room, the owner and/or manager shall provide minimum ventilation in accordance with the applicable building and fire Ccodes.
F. Toilet Facilities. A minimum of one toilet and one separate wash basin shall be provided for clients in each massage establishmentbusiness. The wash basin shall provide soap and hot and cold running water at all times and shall be located within close proximity to the massage rooms. A permanently installed soap dispenser, filled with soap, and a single service towel dispenser or hand dryer shall be provided at the restroom wash basin. Bar soaps shall not be used. A trash receptacle shall be provided in each toilet room.
G. Massage Rooms. The room where massage is administered for each client shall have doors that remain unlocked at all times any client is in the room. A separate dressing area and clothing storage area is required where the massage is performed in a place other than where the client changes his or her clothing. Doors to such dressing rooms shall be self-closing.
H. Maintenance. Wet and dry heat rooms, shower rooms and bath and toilet rooms shall be thoroughly cleaned and disinfected as needed, but at least once each day the premises 31 are open. All facilities for the massage establishmentbusiness must be in good repair and shall be thoroughly cleaned and sanitized at least on a daily basis when the massage establishmentbusiness is in operation.
I. Massage Tables. A massage table shall be provided in each massage room and all massages shall be performed on the massage table, with the exception of “Thai,” “Shiatsu,” and similar modalities of massage therapy, which may be performed on a padded mat on the floor.
No more than one client may occupy a massage table at the same time. Beds and floor mattresses shall not be permitted on the premises.
J. Front Door. One front door that enters into the lobby and/or other waiting room shall be provided for client use. All clients and any persons other than employees or independent contractors shall be required to enter and exit through the front door of the massage establishmentbusiness.
K. Window Coverings. Any windows in the lobby shall not be covered. The lobby must be clearly visible from the exterior of the massage business at all times.
9.10.210220 Operating requirements for massage businesses—Operations.
All owners and managers shall comply with the following operating requirements for massage businesses as well as any other conditions specified by the police chief:
A. Sanitation. Each owner and/or manager shall provide and maintain on the premises adequate equipment and supplies for disinfecting and sterilizing instruments used in providing massages. Every portion of a massage establishmentbusiness, including appliances and 32 apparatus, shall be kept clean and in a sanitary condition. Appliances, apparatus, and equipment shall be disinfected after each use.
B. Linen. Shared use of towels or linen shall not be permitted. Towels and linen shall be laundered or changed promptly after each use and stored in a sanitary manner.
C. Living Quarters Prohibited. No person or persons shall be allowed to reside, dwell, occupy or live inside a massage establishmentbusiness at any time. A kitchen, if any, shall be for the sole use of employees and independent contractors, and shall be installed in an “employees only” area.
D. Persons Consuming Alcohol or Drugs. No person shall enter, be, or remain in any part of a massage establishmentbusiness while under the influence of an alcoholic beverage or drug unless it is a drug prescribed for that individual. The owner or manager shall not permit any person under the influence of an alcoholic beverage or non-prescribed drug to enter or remain on such premises. Furthermore, no person shall administer or receive a massage while consuming or using an alcoholic beverage or drug unless it is a drug prescribed for that individual.
E. Recordings. No building or part thereof where massage or massage services are being conducted shall be equipped with any electronic, mechanical or artificial device used, or capable of being used, for recording or videotaping or monitoring the activities, conversation or other sounds in the treatment room or room used by clients. In the event a portable recording device is located within a treatment room, the camera and/or microphone area of the device shall be covered so as to render those capabilitiesbe rendered inoperable.
F. Warning Devices. The presence of any device which can be utilized as an early warning system, to alert the employees or independent contractors of a massage business to the 33 presence of law enforcement officers or city authorities is prohibited in any massage establishmentbusiness. Said devices may include, but are not limited to, light or music dimmers, electronic detection devices, external or internal video equipment and alarm systems other than those used for fire alarms. Standard alert chimes to notify staff that a client has entered are permitted.
G. Coverings. Each massage establishmentbusiness shall provide to all clients clean, sanitary, and opaque coverings of a minimum size of 30 inches by 60 inches, capable of covering the clients’ specified anatomical areas, including, but not limited to, the genital area, buttocks, and female breasts. No shared use of such covering shall be permitted, and re-use is specifically prohibited unless adequately cleaned prior to its re-use.
H. Records. Every owner and/or manager shall keep a record of the dates and hours of each treatment or service, the name, and address, and phone number of the client as confirmed by valid identification, the name of the massage professional administering such service and a description of the treatment or services rendered. These records shall be prepared prior to administering any massage or treatment and shall be retained for a period of two years after such treatment or service. These records shall be open to inspection upon demand by the police chief, the fire chief, the building official, any enforcement officer (as defined by Section 2.50.020 of the Roseville Municipal Code) or their authorized representatives or emergency personnel for emergency purposes.
I. Hours of Operation. No massage establishmentbusiness shall be open for business except during the hours of 6:00 a.m. to 10:00 p.m. on any day. 34 J. Doors. All exterior doors (except a rear entrance for staff only) and interior doors must remain unlocked during business hours, unless there is no massage business staff available to assure the security of clients and massage professionals who are behind closed doors. This subsection shall not apply to sole providers as defined in Section 9.10.020(R) of this chapter.
K. Dress Code for Clients and Visitors. Except for a client who is inside a massage room for the purpose of receiving a massage, no clients or visitors shall be permitted in or on the massage establishmentbusiness premises at any time who are not fully clothed in outer garments of nontransparent material, or who display or expose themselves in underclothing, sheer clothing, or similar intimate apparel that exposes the breasts, buttocks, or genital area.
L. Advertising.
1. Any advertising matter published or distributed shall include in legible print the massage business permit number.
2. No massage business shall place, publish or distribute or cause to be placed, published or distributed any advertising matter that:
a. Depicts any portion of the human body that would reasonably suggest to prospective clients that any service is available other than legitimate massage services; or b. Depicts individuals in suggestive poses that would reasonably suggest to prospective clients that any service is available other than legitimate massage services; or c. Employs language in the text of any advertising that would reasonably suggest to prospective clients that any service is available other than legitimate massage services.
35 d. Advertises on a website known to advertise or promote illegal activities.
M. Display of Human Trafficking Notices. The massage business shall comply with the requirements of California Civil Code Section 52.6 related to the posting of information for victims of human trafficking.
9.10.220230 Operating requirements for mobile massage services.
A. All equipment and apparatus shall be kept in a clean and sanitary condition and shall be disinfected after each use.
B. No massage professional performing mobile massage services shall dress while engaged in the practice of massage for compensation in any manner as outlined in Section
9.10.140(I)(8).any of the following:
1. Attire that is transparent, see-through, or substantially exposes the individual’s undergarments.
2. Swim attire, if not providing a water-based modality approved by the CAMTC.
3. A manner that exposes the individual’s breasts, buttocks, or genitals.
4. A manner that constitutes a violation of Section 314 of the Penal Code.
5. A manner that is otherwise deemed by the CAMTC to constitute unprofessional attire based on the custom and practice of the profession in California.
C. Each massage professional performing mobile massage services shall have in his or her possession proof of an active and valid massage business permit while administering massage.
36 D. Mobile massage services must be performed in accordance with all other conditions as set forth in this chapter, and shall not include any services prohibited from being offered at a massage establishmentbusiness under this chapter.
E. No mobile massage services shall be conducted except during the hours of 6:00 a.m. to 10:00 p.m. on any day.
F. No massage professional performing mobile massage services shall provide massage of the genitals or anal region of any client. No massage professional performing mobile massage services shall provide massage to the breasts of any female client without the written consent of the female client and a referral from a licensed California health care provider. A massage shall not be given and no client shall be in the presence of a massage professional performing mobile massage services unless the client’s genitals and the female client’s breasts are fully covered by a non-transparent covering.
G. A list of services shall be available for review of the client or authorized representative of the police chief upon request and shall be described in English. No massage professional shall offer to perform mobile massage services other than those listed.
H. No person shall administer or receive a mobile massage while under the influence of an alcoholic beverage or drug unless it is a drug prescribed for that individual.
9.10.230240 Display of permits and certifications.
A. Every massage business permit issued pursuant to this chapter shall be conspicuously displayed so that it may be easily seen by any client or other person on the massage establishmentbusiness premises.
37 B. Any person providing massage services or mobile massage services shall have either: (1) an active and valid CAMTC certificate and CAMTC photo identification card; or (2) an active and valid exemption certificate, which shall be readily available for inspection at all times while providing such services, and shall show the CAMTC certificate and identification card or exemption certificate to any member of the public, the CAMTC, a member of law enforcement, or a city official upon request.
C. Any person who provides mobile massage services, or who is a sole proprietor or independent contractor leasing space at a massage business, shall have their massage business permit available for inspection at all times while providing such services, and shall show the massage business permit to any authorized representative of the city.
9.10.240250 Permit—Non-transferable, change of address or contact information.
Any massage business permit issued pursuant to this chapter is valid only at the address, if applicable, and for the person specified therein and cannot be sold, transferred or assigned to any other person. Change of the massage business address requires the owner or manager to notify the police chief in writing ten 10 calendar days prior to the massage business moving to a new location and requires an inspection of the massage establishment business prior to the massage business accepting clients for massage therapy. Failure to notify the police chief of the change of address shall render any permit void and any operation of a massage business unlawful.
9.10.250260 Exemptions.
The following persons and businesses shall be exempt from the requirements of this chapter.
38 A. Persons holding an active and valid certificate to practice the healing arts under the laws of the state of California and their employees and independent contractors, including, but not limited to, holders of medical degrees such as physicians, surgeons, chiropractors, osteopaths, naturopaths, podiatrists, acupuncturists, physical therapists, registered nurses, and licensed vocational nurses, when practicing the healing arts within the scope of an applicable license.
B. State-licensed hospitals, nursing homes, sanitariums, physiotherapy businesses, or other state-licensed physical or mental health facilities and their employees or independent contractors.
C. Approved schools of massage Schools of massage approved by the state of California under the provisions of Section 4601(a) of the California Business and Professions Code and their students in training, provided such students provide massage therapy only under the direct personal supervision of an instructor.
D. Barbers and cosmetologists who are licensed under the laws of the state of California, while providing massage therapy within the scope of their licenses, provided that such massage therapy is limited solely to the neck, face, scalp, feet, and lower limbs up to the knees, and hands and arms, of their clients.
E. Persons who, acting within the scope of their employment, provide massage therapy to semi-professional or professional athletes or athletic teams, facilities or events, so long as such persons do not practice massage therapy as their primary occupation within city limits.
9.10.260270 Criminal penalties.
39 It is unlawful and a public nuisance to intentionally violate any of the provisions of this chapter. Violation of this chapter shall be a misdemeanormay be charged as either an infraction or a misdemeanor in the discretion of the city attorney.
9.10.270280 Civil injunction.
The violation of any provision of this chapter shall be and is hereby declared to be contrary to the public interest and shall, at the discretion of city, create a cause of action for injunctive relief.
9.10.280290 Administrative remedies.
In addition to the civil remedies and criminal penalties set forth above, any person that violates the provisions of this chapter may be subject to administrative remedies, as set forth by city ordinance.
9.10.290300 Cumulative remedies, procedures and penalties.
Unless otherwise expressly provided, the remedies, procedures and penalties provided by this chapter are cumulative to each other and to any others available under state law or other city ordinances.
§ 9.10.300310 Separate offense for each day.
Any person that violates any provision of this chapter shall be guilty of a separate offense for each and every day during any portion of which any such person commits, continues, permits, or causes a violation thereof, and shall be punished accordingly. § 9.10.310321 Severability.
40 The provisions of this chapter are hereby declared to be severable. If any provision, clause, word, sentence, or paragraph of this chapter or the application thereof to any person, establishment, or circumstances shall be held invalid, such invalidity shall not affect the other provisions or application of this chapter.
SECTION 2. This ordinance shall be effective at the expiration of thirty (30) days from the date of adoption.
SECTION 3. The City Clerk is hereby directed to cause this ordinance to be published in full at least once within fourteen (14) days after it is adopted in a newspaper of general circulation in the City, or shall within fourteen (14) days after its adoption cause this ordinance to be posted in full in at least three (3) public places in the City and enter in the Ordinance Book a certificate stating the time and place of said publication by posting.
PASSED AND ADOPTED by the Council of the City of Roseville this ___ day of _______________, 20__, by the following vote on roll call:
AYES COUNCILMEMBERS:
NOES COUNCILMEMBERS:
ABSENT COUNCILMEMBERS:
41 ______________________________
MAYOR
ATTEST:
_________________________________
City Clerk
RESOLUTION NO. 24-271
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROSEVILLE ADOPTING
MASSAGE EXEMPTION CERTIFICATE APPLICATION AND RENEWAL FEES AND
INCORPORATING THE FEES INTO THE SCHEDULE OF USER AND REGULATORY FEES
WHEREAS, Chapter 9.10 of the Roseville Municipal Code is being amended to, among other things, establish a “exemption certificate” for massage professionals not having certification through the California Massage Therapy Council; and WHEREAS, staff recommends City Council adopt an exemption certificate application fee of $159.00 and an exemption certificate renewal fee of $39.00; and WHEREAS, use and regulatory fees are established by the City Council; and WHEREAS, on May 1, 2024, the City Council adopted an updated schedule of fees for use in Fiscal Year 2024-2025.
NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Roseville hereby finds, determines, and orders as follows:
1. An exemption certificate application fee of $159.00 and an exemption certificate renewal fee of $39.00 are herby adopted.
2. The exemption certificate application fee of $159.00 and an exemption certificate renewal fee of $39.00 are incorporated into the City’s current master Schedule of User and Regulatory fees.
PASSED AND ADOPTED by the Council of the City of Roseville this day of , 20 , by the following vote on roll call:
AYES COUNCILMEMBERS:
NOES COUNCILMEMBERS:
ABSENT COUNCILMEMBERS:
MAYOR
ATTEST:
City Clerk
Phone (916) 774-5325 • Fax (916) 773-7348 • TDD (916) 774-5220 • [email protected] • www.roseville.ca.us/cityattorney April __, 2024
Via U.S. Mail
Re: Proposed Ordinance Revising Roseville Municipal Code Chapter 9.1, Massage Services
To Whom It May Concern:
We are reaching out to notify you of an important proposed change to Chapter 9.10 of the Roseville Municipal Code, titled, “Massage Services.” As you may be aware, Chapter 9.10 of the Municipal Code regulates massage business activity within the City of Roseville’s jurisdictional boundaries. This includes regulations regarding massage business permitting, massage business operations, and education and training requirements for massage professionals.
Please be aware that City Staff intends to present an ordinance to the City Council that would, among other changes, modify the minimum requirements for those who may provide massage services within the City. Specifically, the proposed ordinance establishes that individuals must have an active and valid certificate from the California Massage Therapy Council (“CAMTC”) in order to perform massage services, and individuals without CAMTC certification would no longer be able to perform massage services. Importantly, this new requirement would not go into effect until January 1, 2025, allowing massage businesses a “grace period” to come into compliance.
There is also a limited exception that will allow massage professionals already practicing within the City to be exempt from this new requirement if they have been practicing massage within the City for an established period of time, are in good standing with the City, and meet certain educational and training requirements.
The City takes great pride in its business community, and we thank you for choosing to do business here. If you have any questions, please feel free to contact me at (916) 746-1069 or you may email me directly at [email protected].
Sincerely,
Erika Broussard
Community Service Officer II
City of Roseville
City Attorney
311 Vernon Street
Roseville, California 95678
COUNCIL COMMUNICATION
CC #: 3434
File #: 0704-01
Title: C-63 Park Site - Master Plan Approval
Contact: Tara Gee 916-774-5253 [email protected]
Meeting Date: 7/17/2024
Item #: 9.1.
RECOMMENDATION TO COUNCIL
Staff recommends that the City Council approve the C-63 Park Master Plan.
BACKGROUND
Location
This 2.5-acre neighborhood park is located off of Lemonade Lane at Lower Bank Drive within the Creekview area of Roseville.
Public Outreach
The public outreach efforts included a virtual meeting held in September 2023, an in-person workshop held in December 2023, and a two-week write-in period which opened at the end of March 2024 and closed in April 2024.
13 people wrote in with 9 in support, 1 not in support and 4 expressing concern about the main cluster of park amenities being too close to their home. Additionally, the neighborhood association posted the proposed master plan on the Facebook page where 21 people commented, mostly in support of the proposed plan.
Many of the comments asked for a swing area. Due to budget concerns, the swings were originally not added. Given the number of comments asking for swings, we revised the master plan to include a swing area, however, to ensure we meet the budget, the natural grass area was downsized.
Regarding the concern on the location of the more active park amenities, the majority of the neighborhood asked that the half court for basketball be moved to the north end of the park because they often have neighborhood gatherings on Grasscreek Drive (north end) with food trucks and the court can be used as a multi-functional space for the frequent gatherings. To realize greater efficiencies, clustering the play area, picnic and swings minimizes the amount of concrete and serves multiple purposes thus allowing the design to meet budget. It should also be noted that a half court for basketball is generally less active/noisy and serves a family environment as compared to a full court for basketball. Also, landscaping and turf areas surround the half court, helping to soften views into the park.
Proposed Master Plan
The park improvements proposed include:
• A multi-purpose court for basketball and social gatherings • Shaded play area
• Swings
• Shaded picnic area
• A looped pathway
• Natural grass
• Landscaping & Irrigation
Parks & Recreation Commission
The Parks & Recreation Commission recommended approval of the master plan at their June 3, 2024 meeting.
FISCAL IMPACT
These improvements plus the design, permitting, inspection and project management (soft) costs meet the planned $1.2 million budget. If approved, and as the plan is further refined, the grass area may be further decreased or enlarged based on the construction costs at the time of bid.
Funding for design of this project was approved in the FY2023-24 budget and a budget adjustment will be recommended in FY2024-25 for construction. Funds are allocated through the Creekview Neighborhood Park Fund. Funding for maintenance will be through the Creekview Community Facilities District No. 2 (Public Services). There will be no General Fund impact.
ENVIRONMENTAL REVIEW
Development of the C-63 Neighborhood Park Master Plan project was previously evaluated in the Creekview Specific Plan EIR (certified September 19, 2012, SCH No. 2008032017), and identified in the associated Creekview Specific Plan. Based on results of an initial study, construction of the C-63 Neighborhood Park Master Plan project is found to be within the scope of the project covered by the Creekview Specific Plan EIR. As discussed in the Specific Plan EIR, the EIR provides environmental analyses of community infrastructure and facilities, including parks, pedestrian bridges, and bike trails, to the extent applicable. Because the project is consistent with the Creekview Specific Plan EIR and Specific Plan, no new effects would be expected to occur and all applicable mitigation measures from the Creekview Specific Plan EIR will be implemented during the design and construction of the C-63 Neighborhood Park Master Plan project. Because the proposed project meets the requirements identified in Section 15183 of the State CEQA Guidelines, no additional CEQA review is required.
CITY COUNCIL STRATEGIC PLAN/OVERARCHING GOALS
Goal A - Remain fiscally responsible in a changing world Goal B - Support community engagement and advocacy
Goal C - Maintain a safe and healthy community
Goal E - Deliver exceptional city services
Goal F - Invest in well-planned infrastructure and growth Respectfully Submitted,
Tara Gee, Park Planning & Development Manager
Jill Geller, Parks, Recreation & Libraries Director
_____________________________
Dominick Casey, City Manager
ATTACHMENTS:
Description
Vicinity Map
C-63 Master Plan
Vicinity Map
C-63 Park Site
C - 63 PARK
CONCEPTUAL MASTERPLAN JULY 2024
DESIGN ADJUSTMENTS BY: J.R.C
13 1
1 TURF AREA MAY INCREASE
OR DECREASE BASED ON
BIDS AND AVAILABLE
BUDGET
POTENTIAL ZIPLINE
PENDING BID AND BUDGET
POCKETS OF WATERCONSERVING PLANTINGS
AND BARK MULCH
COUNCIL COMMUNICATION
CC #: 3440
File #: 0704-01
Title: KT-52 School/Park - Master Plan Approval
Contact: Tara Gee 916-775-5253 [email protected]
Meeting Date: 7/17/2024
Item #: 9.2.
RECOMMENDATION TO COUNCIL
Staff recommends that the Council approve the KT-52 School/Park Master Plan.
BACKGROUND
Location
This 7.5-acre park is located on Sierra Village Drive within the Sierra Vista area of Roseville.
Public Outreach
The public outreach efforts included a virtual meeting held in November 2023 with 60 people attending, an in-person workshop held in January 2024 where 20 people attended, and a two-week write-in period in May 2024. Results from the two-week write-in period were 5 people supporting the plan and 2 seeking additional park features such as tennis courts, a splash pad and swings.
There was no opposing feedback.
Proposed Master Plan
The park improvements proposed include:
• A multi-use grass area that can accommodate a youth cricket field or youth soccer • Shaded play area
• A covered picnic area with four tables
• A restroom
• A full court for basketball
• Off-street parking that will eventually connect to parking at the elementary school • A looped pathway
• A nature play area
• Landscaping and irrigation
As staff continue to refine the plans into construction documents, spaces will be refined and adjusted to remain within budget. The park budget, including design, permitting, inspection and project management (soft) costs is $3 million.
Timing for the school has not yet been determined. This school will be built by the Center Joint Unified School District. If approved, this will be the City's first park constructed before the school is built. The plan has been shared with the District, who supported this design.
Parks & Recreation Commission
The Parks & Recreation Commission recommended approval of the KT-52 master plan at the June 3, 2024 meeting.
FISCAL IMPACT
Funding for this project was approved in the FY2022-23 budget (for design) and in the FY2023- 24 budget (for construction) through the Sierra Vista Neighborhood Park Fund. Maintenance will be funded through the Sierra Vista Community Facilities District No. 2 (Public Services). There will be no General Fund impacts.
ENVIRONMENTAL REVIEW
Development of the KT-52 School/Park Master Plan was previously evaluated in the Sierra Vista Specific Plan EIR (certified May 5, 2010, SCH No. 2008032115), and identified in the associated Sierra Vista Specific Plan. Construction of the KT-52 School/Park Master Plan project is found to be within the scope of the project covered by the Sierra Vista Specific Plan EIR. As discussed in the Specific Plan EIR, the EIR provides environmental analyses of community infrastructure and facilities, including parks, pedestrian bridges, and bike trails, to the extent applicable. Because the project is consistent with the Sierra Vista Specific Plan EIR and Specific Plan, no new effects would be expected to occur and all applicable mitigation measures from the Sierra Vista Specific Plan EIR will be implemented during the design and construction of the KT-52 School/Park Master Plan project. Because the proposed project meets the requirements identified in Section 15183 of the State CEQA Guidelines, no additional CEQA review is required.
CITY COUNCIL STRATEGIC PLAN/OVERARCHING GOALS
Goal A - Remain fiscally responsible in a changing world Goal B - Support community engagement and advocacy
Goal C - Maintain a safe and healthy community
Goal D - Enhance economic vitality
Goal E - Deliver exceptional city services
Goal F - Invest in well-planned infrastructure and growth Respectfully Submitted,
Tara Gee, Park Planning & Development Manager
Jill Geller, Parks, Recreation & Libraries Director
_____________________________
Dominick Casey, City Manager
ATTACHMENTS:
Description
Vicinity Map
KT-52 Master Plan
Vicinity Map
KT-52 Park Site
KT-52 Master Plan