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CivicPlus Master Services Agreement
This Master Services Agreement (this “Agreement”) governs all Statements of Work (“SOW”) entered into by and between CivicPlus, LLC (“CivicPlus”) and the customer entity identified on the SOW (“Customer”). This Agreement governs the use and provision of any Services purchased by Customer, as described in any signed SOW, and the effective date of this Agre ement shall commence on the date of signature of the SOW (“Effective Date”). If a SOW has not been executed, then the Effective Date shall be determined as the start date of implementation of any software solution by CivicPlus for Customer. CivicPlus and Customer referred to herein individually as “Party” and jointly as “Parties”.
Recitals
I. WHEREAS, CivicPlus is engaged in the business of developing and providing access to proprietary community engagement and government content, workflow, and general manag ement software solutions, platforms and associated services (the “Services”); and
II. WHEREAS, Customer wishes to engage CivicPlus for the procurement of the Services and/or receive a license subscription for the ongoing use of the Services, as set forth in the SOW;
NOW, THEREFORE, Customer and CivicPlus agree as follows:
Agreement
Term & Termination
1. This Agreement shall commence on the Effective Date and shall remain in full force and effect for as long as any SOW is in effect between CivicPlus and Customer, or Services are being provided by CivicPlus to Customer, unless terminated in accordance with this §1 or as otherwise provided in this Agreement (the “Term”). Either Party may terminate this Agreement or any SOW as set forth in such SOW, or at its discretion, effective immediately upon written notice to the other Party, if the other Party materially breaches any provision of this Agreement and does not substantially cure the breach within thirty (30) days after receiving notice of such breach. A delinquent Customer account remaining past due for longer than 90 days is a material breach by Customer and is grounds for CivicPlus termination. CivicPlus reserves the right to withhold, remove and/or discard Customer Data without notice for any breach, including, without limitation, Customer’s non-payment. Upon termination for Customer’s breach Customer’s right to access or use Customer Data immediately ceases, and CivicPlus shall have no obligation to maintain or forward any Customer Data. Customer Data is defined below
2. Upon termination of this Agreement or any SOW for any reason, (a) the licenses granted for such relevant SOW by §11 below will terminate and Customer shall cease all use of the CivicPlus Property and Services associated with the terminated SOW except that export of Customer Content per paragraph 9 shall be permitted upon written request to CivicPlus and for an additional fee,, and (b) any amounts owed to CivicPlus for work performed prior to termination shall become due in full and payable net 30 from the date of the final invoice If Customer has paid in advance for the Services, 232
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and this Agreement terminates due to materia l breach of this Agreement by CivicPlus, CivicPlus shall refund Customer the prorated amount of any amount already paid. Upon termination by Customer for convenience or due to material breach by Customer, in addition to any remedy provided in this Agreement or provided in law or equity, CivicPlus shall be entitled to retain any amounts already paid. Sections 7, 8, 10, 14, 15, 18, 32 - 34, 40, and 42 will survive any expiration or termination of this Agreement.
3. At any time during the Term, CivicPlus may, imm ediately upon notice to Customer, suspend Customer and any of its Users access to any Service due to a threat to the technical security or technical integrity of the Services.
Invoicing & Payment Terms
4. Customer will pay the amounts owed to CivicPlus for implementation of the Customer’s Services, as defined in the SOW (“Total Investment”) subscription and licensing, and annual hosting, support and maintenance services (“Annual Recurring Services”) in accordance with the payment schedule set f orth on the applicable SOW. Invoices shall be sent electronically to the individual/entity designated in the SOW’s contact sheet that is required to be filled out and submitted by Customer (the “Contact Sheet”). Customer shall provide accurate, current and complete information of Customer’s name, address, email address, and phone number in the Contact Sheet upon submission of a signed SOW. Customer will maintain and promptly update the Contact Sheet information if it should change. Upon Customer’s request, CivicPlus will mail hard-copy invoices for a $5.00 convenience fee to be added to the mailed invoice.
5. Each SOW will state the amount of days from date of invoice payment is due. Unless otherwise limited by law, a finance charge of 1.5 percent (%) per month or the maximum rate permitted by applicable law, whichever is less, will be added to past due accounts from due date until paid. Payments received will be applied first to finance charges, then to the oldest outstanding invoice(s). If the Customer's account exceeds 60 days past due, support will be discontinued until the Customer's account is made current. If the Customer's account exceeds 90 days past due, CivicPlus may suspend in progress Project Development and Annual Recurring Services will be discontinued, and the Customer will no longer have access to the Services until the Customer's account is made current. Customer will be given 30 days’ notice prior to discontinuation of Services for non-payment.
6. During the performance of Project Development, if Customer requests a change that requires repeated efforts to previously approved work product and such change causes CivicPlus to incur additional expenses (i.e. airline change fees, resource hours, consultant fees, Customer does not show up for scheduled meetings or trainings), Customer agrees to reimburse CivicPlus for such additional expenses. CivicPlus shall notify Customer prior to incurring such expenses in writing and shall only incur those expenses which are approved by Customer.
Ownership & Content Responsibility
7. Upon full and complete payment of amounts owed for Total Investment under the applicable SOW, Customer will own any website graphic designs, Services content, module content, importable/exportable data, and archived information (“Customer Content”) created by CivicPlus on behalf of Customer pursuant to this Agreement. “Customer Content” also includes, without limitation, any elements of text, graphics, images, photos, audio, vi deo, designs, artworks, logos, trademarks, services marks, and other materials or content. Customer Content is external facing on the website as opposed to Customer Data defined below. . which Customer provides to CivicPlus or which is collected by the Services for Customer for processing, transmission, storage, or inputs into any website, software or module in connection with any Services. Customer Content excludes any content in the public domain and any content owned or licensed by CivicPlus, whether in connection with providing Services or otherwise. 233
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8. Upon completion of the Project Development, Customer will take over the management and control of the Services and Customer will assume full responsibility for Customer Content maintenance and administration, except that nothing herein shall absolve CivicPlus of its responsibility to implement and maintain security and privacy of the Services which store, process, transmit, or receive Customer Data as set forth in the Data Security paragraphs of this Agreement. Customer, not CivicPlus, shall have sole responsibility for the accuracy, quality, legality, reliability, appropriateness, and intellectual property ownership or right to use of all Customer Content. Customer hereby grants CivicPlus a worldwide, non-exclusive right and license to reproduce, distribute and display the Customer Content as necessary to provide the Services. Customer represents and warrants that Customer owns all Customer Content or that Customer has permission from the rightful owner to use each of the elements of Customer Content and that Customer has all rights necessary for CivicPlus to use the Customer Content in connection with providing the Services. Customer agrees that CivicPlus shall not be responsible or liable for the content of messages created by Customer or by Customer’s Users or end -users who access Service. Notwithstanding the foregoing, CivicPlus retains the right, but not the obligation, to remove any Customer Content that is l ibelous, harassing, abusive, fraudulent, defamatory, excessively profane, obscene, abusive, hate related, violent, harmful to minors, that advocates racial or ethnic intolerance, intended to advocate or advance computer hacking or cracking, or other material, products or services that violate or encourage conduct that would violate any laws or third- party rights.
9. At any time during the term of the applicable SOW, Customer will have the ability to download the Customer Content and export the data that is processed through the Services (“Customer Data”). Customer may request CivicPlus to perform the export of Customer Data and provide the Customer Data to Customer in a commonly used format, at any time , for a fee to be quoted at time of request and approved by Customer . Upon termination of the applicable SOW for any reason, whether or not Customer has retrieved or requested the Customer Data, CivicPlus reserves the right to permanently and definitively delete the Customer Content and Customer Data held in the Services sixty (60) days following termination of the applicable SOW. During the sixty (60) day period following termination of the SOW, regardless of the reason for its termination, Customer will not have access to the Services, but export of the Customer Data by CivicPlus will be permitted, upon written request from the customer and for an additional fee, during this sixty (60) day period following termination of the applicable SOW.
10. Intellectual Property in the software or other original works created by or licensed to CivicPlus, including all software source code, documents, and materials used in performing the Services (“CivicPlus Property”) will remain the property of CivicPlus. CivicPlus represents and warrants it owns all ne cessary intellectual property rights in CivicPlus Property.
CivicPlus Property specifically excludes Customer Content. Customer shall not (i) license, sublicense, sell, resell, reproduce, transfer, assign, distribute or otherwise commercially exploit or make available to any third party any CivicPlus Property in any way, except as specifically provided in the applicable SOW; (ii) adapt, alter, modify or make derivative works based upon any CivicPlus Property; (iii) create internet “links” to the CivicPlus Property software or “frame” or “mirror” any CivicPlus Property administrative access on any other server or wireless or internet -based device that may allow third party entities, other than Customer, to use the Services; (iv) reverse engineer, decompile, disassemble or otherwise attempt to obtain the software source code to all or any portion of the Services; (v) make any attempt to gain unauthorized access to the Services and/or any of CivicPlus’ systems or networks; or (vi) access any CivicPlus Property in order to: (a) build a competitive product or service, (b) build a product using similar ideas, features, functions or graphics of any CivicPlus Property, or (c) copy any ideas, features, functions or graphics of any CivicPlus Property. The CivicPlus name, the CivicPlus logo, and the product and module names associated with any CivicPlus Property are trademarks of CivicPlus, and no right or license is granted to use them outside of the licenses set forth in this Agreement.
11. Provided Customer complies with the terms and conditions herein, the relevant SOW, and license restrictions set forth in §10, CivicPlus hereby grants Customer a limited, nontransferable, nonexclusive, non-assignable license to access and use the CivicPlus Property associated with any valid and effective SOW, for the term of the respective SOW. The license set forth herein, shall only apply to the extent that Customer is using the Services for legitimate public use as 234
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intended by the purpose of the Services and not for the purpose of comparing the Services to a competitor or similar product of CivicPlus. Customer hereby warrants and affirms its purpose in accessing or otherwise using the Services is for their intended purpose only and understands and agrees that any other use shall be considered fraud.
12. All CivicPlus helpful information and user’s guides for the Services (“Documentation”) are maintained and updated electronically by CivicPlus and can be accessed through the CivicPlus “Help Center”. CivicPlus does not provide paper copies of its Documentation. Customer and its Users are granted a limited license to access Documentation as needed.
Customer shall not copy, download, distribute, or make derivatives of the Documentation, except that Customer is permitted to download Documentation to educate and train its authorized users of the Services.
13. Customer acknowledges that CivicPlus may continually develop, alter, deliver, and provide to the Customer ongoing innovation to the Services, in the form of new features and functionalities. CivicPlus reserves the right to modify the Services from time to time. Any modifications or improvements to the Services listed on the SOW will be provided to the Customer at no additional charge. In the event that CivicPlus creates new products or significant enhancements to the Services (“New Services”), and Customer desires t hese New Services, then Customer will have to pay CivicPlus the appropriate fee for the access to and use of the New Services through a mutually executed addendum or amendment to the SOW. CivicPlus shall use its reasonable best efforts to provide workarounds in the event any modification to the Services causes Customer to lose substantial functionality of the Services.
14. CivicPlus in its sole discretion, may utilize all comments and suggestions, whether wri tten or oral, furnished by Customer to CivicPlus in connection with its access to and use of the Services (all reports, comments and suggestions provided by Customer hereunder constitute, collectively, the “Feedback”). Customer hereby grants to CivicPlus a worldwide, non -exclusive, irrevocable, perpetual, royalty -free right and license to incorporate the Feedback in the CivicPlus products and services.
Indemnification
15. CivicPlus will defend at its expense or settle any third -party claim against Customer al leging that the Services provided under this Agreement infringe intellectual property rights. CivicPlus will pay infringement claim defense costs, CivicPlus–negotiated settlement amounts, and damages finally awarded by a court. CivicPlus has no obligation for any claim of infringement arising from Customer's use of the Services for purposes not contemplated by this Agreement .
CivicPlus’s indemnification obligations under this Section 15 are conditioned upon the Customer (i) promptly notifying the CivicPlus of any claim in writing if Customer is notified of such claim; (ii) cooperating with CivicPlus in the defense of the claim at CivicPlus’s expense; and (iii) granting CivicPlus sole control of the defense or settlement of the claim. The indemnification obligations of CivicPlus herein shall not apply to any claims of intellectual property infringement related to Client Content.
Responsibilities of the Parties
16. CivicPlus will not be liable for any act, omission of act, negligence or defect in the quality of service of any underlying carrier, licensor or other third-party service provider whose facilities or services are used in furnishing any portion of the Service received by the Customer.
17. CivicPlus will not be liable for any failure of performance that is caused by or the result of any act or omission by Customer or any entity employed/contracted on the Customer’s behalf. During Project Development, Customer will be responsive and cooperative with CivicPlus to ensure the Project Development is completed in a timely manner.
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18. Customer agrees that it is solely responsible for the end-user’s personal data that Customer decides to solicit, collect, store, or otherwise use in connection with any Service provided by CivicPlus. Customer u nderstands and agrees that CivicPlus provides certain solutions with increased security measures for the solicitation and storage of any sensitive data, and it is Customer’s responsibility to determine whether the data it solicits and collects should be stored in such solutions.
Customer understands and agrees that CivicPlus does not have knowledge or control over what type of data Customer solicits therefore CivicPlus has no responsibility for the use or storage of end-users’ personal data in connection with the Services or the consequences of the solicitation, collection, storage, or other use by Customer or by any third party of any personal data. Customer has the sole control and responsibility over the determination of which data and information shall be included in the content that is to be transmitted and stored by CivicPlus. Customer shall n ot provide to CivicPlus or allow to be provided to CivicPlus any content that (a) infringes or violates any 3rd party’s intellectual property rights, rights of publicity or rights of privacy , (b) contains any defamatory material, or (c) violates any federa l, state, local, or foreign laws, regulations, or statutes.
19. Customer is responsible for all activity that occurs under Customer's accounts by or on behalf of Customer. Customer agrees to (a) be solely responsible for all designated and authorized individuals chosen by Customer (“User”) activity, which must be in accordance with this Agreement and the CivicPlus Terms of Use; (b) be solely responsible for Customer Data; (c) obtain and maintain during the term all necessary consents, agreements and approvals from end-users, individuals or any other third parties for all actual or intended uses of information, data or other content Customer will use in connection with the Services; (d) use commercially reasonable efforts to prevent unauthorized access to, or us e of, any User’s log-in information for the Services, and notify CivicPlus promptly of any known unauthorized access or use of User’s log-in information ; (e) use commercially reasonable efforts to prevent unauthorized access to or use of User’s log- in information to the Services and CivicPlus Property and shall promptly notify CivicPlus of any unauthorized access or use of User’s log-in information to Services and/or CivicPlus Property and any loss or theft or unauthorized use of any User's password or username and/or personal information ; and (f) use the Services only in accordance with applicable laws and regulations.
20. The Parties shall comply with all applicable local, state, and federal laws, treaties, regulations, and conventions in connection with its use and provision of any of the Services or CivicPlus Property, including applicable privacy laws with regard to Confidential Information
21. CivicPlus shall not be responsible for any act or omission of any third-party vendor or service provider that Customer has selected to integrate any of its Services with.
22. Customer understands that CivicPlus must fastidiously allocate resources across all of its customers and specifically reserves necessary resources for Customer’s Project Development. If any professional services, such as consulting or training, purchased by Customer are not used during the Project Development phase solely due to the inaction or unresponsiveness of Customer, then these services shall expire 30 days after completion of Project Development. The Customer may re -schedule any unused professional services during this 30-day period as mutually agreed upon by the Parties. Any professional services that have not been used or rescheduled shall be marked as complete and closed upon the expiration of the 30-day period.
Data Security
23. CivicPlus shall, at all times, comply with the terms and conditions of its Privacy Policy, except that Customer Data shall not be accessed, disclosed, shared or transmitted to any third party unless necessary to perform the Services under this Agreement. CivicPlus will maintains commercially reasonable administrative, physical, and technical safeguards, in accordance with industry standards, designed to protect the security and confidentiality of Customer Data. CivicPlus 236
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represents and warrants that its Services, as provided to the Customer without modification, are free and clear of known viruses. CivicPlus will not modify Customer Data or disclose Customer Data, except (a) in order to provide the Services and as governed by all other provisions in this Agreement; (b) to prevent or address service or technical problems in connection with support matters; (c) as specifically directed or expressly permitted in writing by Customer, (d) in compliance with our Privacy Policy except that Customer Data shall not be accessed, disclosed, shared or transmitted to any third party unless necessary to perform the Services under this Agreement; or (f) if compelled by law. Notwithstanding the foregoing, CivicPlus reserves the right to delete, suspend, or block known malicious accounts without Customer authorization. Customer understands that CivicPlus has no obligation to provide the Services or maintain the Customer Data, information or other material if Customer’s accounts are past due and unpaid as set forth in this Agreement.
24. Customer acknowledges and agrees that CivicPlus utilizes third -party service providers to host and provide the Services and store Customer Data as necessary to perform the Services under this Agreement. and the protection of such data will be in accordance with such third party’s safeguards for the protection and the security and confidentiality of Customer’s Data. Notwithstanding anything to the contrary, CivicPlus shall have the right to collect and analyze data and other information relating to the provision, use and performance of various aspects of the Services and related systems and technologies (including, without limitation, information concerning Customer Data and data derived therefrom, except that Customer Data shall not be accessed, disclosed, shared or transmitted to any third party unless necessary to perform the Services under this Agreement) and CivicPlus will be free (during and after the term hereof) to use such information and data to improve and enhance the Services and for other development, diagnostic and corrective purposes in connection with the Services and other CivicPlus offerings.
25. CivicPlus may offer Customer the ability to use third-party applications in combination with the Services. Any such third-party application will be subject to acceptance by Customer. In connection with any such third-party application agreed to by Customer, Customer acknowledges and agrees that CivicPlus may allow the third-party providers access to Customer Data as required for the interoperation of such third-party application with the Services. The use of a third-party application with the Services may also require Customer to agree to a separate agreement or terms and conditions with the provider of the third-party application, which will govern Customer's use of such third-party application.
26. In the event of a security breach due to the sole negligence, malicious actions, omissions, or misconduct of CivicPlus, CivicPlus, as the data custodian, will comply with all applicable federal and state law. In the event a security breach is caused by a third party vendor, contracted by CivicPlus, CivicPlus shall use reasonable efforts to ensure such third party vendor complies with all applicable federal and state law. These obligations do not apply to a Data Breach of Confidential Information due to the negligence or misconduct of Customer. CivicPlus warrants and represents that it shall Cyber Insurance during the term of this Agreement. .
CivicPlus Support
27. CivicPlus will use commercially reasonable efforts to perform the Services in a manner consistent with applicable industry standards, including maintaining Services availability 24 hours a day, 7 days a week with 99.9% uptime. Customer will have 24/7 access to the online CivicPlus Help Center (civicplus.help) to review use articles, software best practices, receive maintenance release notes, as well as submit and monitor omni-channel support tickets and access solution specific support contact methods (https://www.civicplus.help/hc/en-us/requests/new).
28. CivicPlus provides live support engineers based in the domestic United States to respond to basic questions concerning use and configuration, to diagnose software code-related errors, and proactively identify potential systems issues. CivicPlus support engineers serve a preliminary function in the agile development process and escalate defects to software developers or architects for remediation. For security purposes, CivicPlus support engineers are not permitted to modify user accounts, and permissions nor distribute access outside of accounts established by means of a support interaction for testing. Customer delegated Users may receive tutorials and guidance on account modifications but will 237
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perform the action themselves.
29. CivicPlus support hours span between the hours of 7 am to 7 pm CST, but may vary by product. Customer may access the CivicPlus Help Center (civicplus.help) to obtain each product’s support hours. After hours support is available by toll- free phone call only. Non-emergency support requested outside of support hours will be subject to additional fees, such fees will be quoted to Customer at the time of the request and will be subject to Customer acceptance and invoiced the next business day following the non-emergency support. CivicPlus shall have the sole discretion to determine in good faith whether support requests qualify as an emergency, exceed reasonable use or are outside the scope of services outlined in any SOW.
30. If a reported problem cannot be solved during the first support interaction, Customer will be provided a ticket number that will be used as communication method throughout ticket escalation until a solution is provided. Support service does not include support for errors caused by third party products or applications for which CivicPlus is not responsible.
Marketing
31. Customer hereby a uthorizes CivicPlus to include CivicPlus’s name and logo inconspicuously within the Client’s instance of the Services. Customer may publicly refer to itself as a customer of the CivicPlus Services, including on Customer's website and in sales presentations. Notwithstanding the foregoing, each Party hereby grants the other a limited, worldwide, license to use the other’s logo in conformance with such Party’s trademark usage guidelines and solely for the purposes of providing the Services. In no event will either Party issue a press release publicly announcing this relationship without the approval of the other Party, such approval not to be unreasonably withheld.
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Limitation of Liability
32. CivicPlus’ liability arising out of or related to this Agreement, or any associated SOW, will not exceed the amounts paid by Customer for the Annual Recurring Services in the year prior to such claim of liability Notwithstanding the foregoing, CivicPlus’ liability arising out of a security breached solely caused by the gross negligence of CivicPlus shall be limited by the applicable insurance limits available to CivicPlus at the time such claim is made.
33. In no event will CivicPlus be liable to Customer for any consequential, indirect, special, incidental, or punitive damages arising out of or related to this Agreement.
The liabilities limited by Section 32 and 33 apply: (a) to liability for negligence; (b) regardless of the form of action, whether in contract, tort, strict product liability, or otherwise; (c) even if Customer is advised in advance of the possibility of the damages in question and even if such damages were foreseeable; and (d) even if Customer’s remedies fail of their essential purposes. If applicable law limits the application of the provisions of this Limitation of Liability section, CivicPlus’ liability will be limited to the maximum extent permissible.
Warranties and Disclaimer
34. Each person signing the SOW, or otherwise agreeing to the terms of this Agreement, represents and warrants that he or she is duly authorized and has legal capacity to execute and bind the respective Party to the terms and conditions of the SOW and this Agreement. Each Party represents and warrants to the other that the execution and delivery of the SOW and the performance of such Party’s obligations thereunder have been duly authorized and that this Agreement is a valid and legal agreement binding on such Party and enforceable in accordance with its terms. Customer represents and warrants that Customer has not provided any false information to gain access to the Service and that Customer’s billing information provided on the Contact Sheet is correct; and it has all necessary rights in the Customer Content to permit Customer’s use of the Service and to grant the licenses contained in this Agreement without infringing the intellectual property or other rights of any third parties, violating any applicable laws, or violating the terms of any license or agreement to which it is bound.
35. CivicPlus warrants that the Services will perform substantially in accordance with documentation and marketing proposals, and free of any material defect. CivicPlus warrants to the Customer that, upon notice given to CivicPlus of any defect in design or fault or improper workmanship, CivicPlus will remedy any such defect. CivicPlus makes no warranty regarding, and will have no responsibility for, any claim arising out of: (i) a modification of the Services made by anyone other than CivicPlus, except in a situation where CivicPlus approves of such modification in writing; or (ii) use of the Services in combination with a third-party service, web hosting service, or server not authorized by CivicPlus.
36. The Services may be temporarily unavailable for scheduled mainten ance or for unscheduled emergency maintenance, either by CivicPlus or by third -party providers, or because of other causes beyond CivicPlus's reasonable control, but CivicPlus shall use reasonable efforts to provide advance notice in writing or by e -mail of any scheduled service disruption. HOWEVER, SERVICE PROVIDER DOES NOT WARRANT THAT THE SERVICES WILL BE UNINTERRUPTED OR ERROR FREE; NOR DOES IT MAKE ANY WARRANTY AS TO THE RESULTS THAT MAY BE OBTAINED FROM USE OF THE SERVICES. EXCEPT FOR THE EXPRESS WARRA NTIES IN THIS AGREEMENT, THE SERVICES ARE PROVIDED “AS IS AND CIVICPLUS HEREBY DISCLAIMS ALL
WARRANTIES, WHETHER EXPRESS, IMPLIED, STATUTORY OR OTHERWISE, INCLUDING ANY IMPLIED
WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, OR ARISING FROM A PRIOR COURSE OF DEALING.
37. EACH PROVISION OF THIS AGREEMENT THAT PROVIDES FOR A LIMITATION OF LIABILITY, 239
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DISCLAIMER OF WARRANTIES, OR EXCLUSION OF DAMAGES IS TO ALLOCATE THE RISKS OF THIS AGREEMENT BETWEEN THE PARTIES. THIS ALLOCATION IS REFLECTED IN THE PRICING OFFERED BY
CIVICPLUS TO CUSTOMER AND IS AN ESSENTIAL ELEMENT OF THE BASIS OF THE BARGAIN BETWEEN THE PARTIES. EACH OF THESE PROVISIONS IS SEVERABLE AND INDEPENDENT OF ALL OTHER PROVISIONS OF THIS AGREEMENT.
Force Majeure
38. No party shall have any liability to the other hereunder by reason of any delay or failure to perform any obligation or covenant if the delay or failure to perform is occasioned by force majeure, meaning any act of God, storm, pandemic, fire, casualty, unanticipated work stoppage, strike, lockout, labor dispute, civil disturbance, riot, war, national emergency, act of public enemy, internet service provider failure or delay, third party application failure, denial of service attack, or other cause of similar or dissimilar nature beyond its control.
Taxes
39. The amounts owed for the Services exclude, and Customer will be responsible for, all sales, use, excise, withholding and any other similar taxes, duties and charges of any kind imposed by any federal, state or local governmental entity in connection with the Services (excluding taxes based solely on CivicPlus’s income). If the Customer is tax-exempt, the Customer must provide CivicPlus proof of their tax -exempt status, within fifteen (15) days of contract signing, and the fees owed by Customer under this Agreement will not be taxed. If such exemption certificate is challenged or held invalid by a taxing authority then Customer agrees to pay for all resulting fines, penalties and expenses.
Other Documents
40. This Agreement, including all exhibits, amendments, and addenda hereto and all SOWs, constitutes the entire agreement between the Parties and supersedes all prior and contemporaneous agreements, proposals or representations, written or oral, concerning its subject matter. No modification, amendment, or waiver of any provision of this Agreement or any SOW will be effective unless in writing and signed by each Party. However, to the extent of any conflict or inconsistency between the provision in the body of this Agreement and any exhibit, amendment, or addenda hereto or any SOW, the terms of such exhibit, amendment, addenda or SOW will prevail. Notwithstanding any language to the contrary therein, no terms or conditions stated in a Customer purchase order or other order documentation (excluding SOWs) will be incorporated into or form any part of this Agreement, all such term s or conditions will be null and void, unless such term is to refer and agree to this Agreement.
Interlocal Purchasing Consent/ Cooperative Purchasing
41. With the prior approval of CivicPlus, which may be withheld for any or no reason within CivicPlus’s sole discretion, the same terms of this Agreement and any SOW may be extended to any public entity in Customer’s home -state to purchase at the SOW prices and specifications in accordance with the terms stated herein.
42. To the extent permitted by law, the terms of this Agreement and set forth in one or more SOW(s) may be offered to other local government entities upon execution of a separate agreement, SOW, or other duly signed writing by and between CivicPlus and such entity, setting forth all of the terms and conditions for such use, including applicable fees and billing terms.
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Miscellaneous Provisions
43. The invalidity or unenforceability, in whole or in part, of any provision of this Agreement shall not void, affect the validity or enforceability of any other provision of this Agreement.
44. The Parties negotiated this Agreement with the opportunity to receive the aid of counsel and, accordingly, intend this Agreement to be construed fairly, according to its terms, in plain English, without constructive presumptions against the drafting Party. The headings of Sections of this Agreement are for convenience and are not to be used in interpreting this Agreement. As used in this Agreement, the word “including” means “including but not limited to.”
45. The Parties will use reasonable, good faith efforts to resolve any dispute between them in good faith prior to initiating legal action.
46. This Agreement and any SOW, to the extent signed and delivered by means of a facsimile machine or electronic mail, shall be treated in all manner and respects as an original agreement or instrument and shall be considered to have the same binding legal effect as if it were the original signed version thereof delivered in person. The Parties agree that an electronic signature is the legal equivalent of its manual signature on this Agreement and any SOW. The Parties agree that no certification authority or other third party verification is necessary to validate its electronic signature and that the lack of such certification of third party verification will not in any way affect the enforceability of the Parties’ electronic signature or any resulting agreement between CivicPlus and Customer.
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CITY OF WILDOMAR
CC - REGULAR MEETING
CONSENT CALENDAR
Agenda Staff Report # 1.11
Meeting Date: August
9, 2023
SUBJECT:
Delegating Authority to the City Manager to Approve
Administrative Policies
SUBMITTED BY:
Heidi Schrader
PREPARED BY:
Heidi Schrader
ACTION:
Adopt a Resolution entitled:
RESOLUTION NO. 2023 - ___
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WILDOMAR, CALIFORNIA,
DELEGATING AUTHORITY TO THE CITY MANAGER OR HIS DESIGNEE TO APPROVE
ADMINISTRATIVE POLICIES
SUMMARY:
This item authorizes the City Manager or his designee to approve administrative policies that govern personnel administrative actions that do not apply to City Council Members, do not have a fiscal impact, and do not have significant political implications.
BACKGROUND:
Section 2.08.060 of the Wildomar Municipal Code allows City Council to delegate authority to the City Manager. This may include the ability to approve certain policies that don't have a fiscal impact or significant political implications best addressed by City Council. The Code states that City Council can delegate authority to the City Manager to "(P)erform such other responsibilities and exercise such other powers as may be delegated to the City Manager from time to time by ordinance or resolution or other official action of the City Council."
DISCUSSION:
The City of Wildomar is undergoing a significant increase in in-house personnel as we transition away from contract services. Along with that growth comes a need for administrative policies to ensure an equitable and safe environment for all personnel. Administrative policies are the guidelines for the way employees interact and perform work. Some examples of Administrative Policies include, but are not limited to: use of City electronic devices, chain of 242
command procedures, business process expectations, telecommuting practices, and workplace violence prevention. A copy of an Administrative Policy Prohibiting Workplace Violence is included as Attachment B.
Past practice has been that City Council approve all policies, both administrative and financial.
As we grow and expand, our need for a robust set of administrative policies increases exponentially. In order to streamline the adoption of administrative policies and procedures, staff recommend that City Council delegate authority to the City Manager to approve administrative policies. The City Manager will utilize his discretion to determine whether an Administrative Policy has a fiscal impact or significant political implications and will therefore refer the policy to City Council for adoption. All adopted Administrative policies will be kept for review by City Council and City employees at any time, both in a notebook in Human Resources for review and also on the Human Resources web page on a page titled Administrative Policies.
City Council will still retain the authority to repeal any Administrative Policy, if the City Council by a majority vote determines that such policy does not fit into the Administrative Policy Definition as defined in the attached resolution (Attachment A).
FISCAL IMPACT:
There is no fiscal impact associated with this action.
ATTACHMENTS:
Attachment A_Resolution.docx
Attachment B_Workplace Violence Prevention Policy.docx
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RESOLUTION NO. 2023 - _____
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WILDOMAR,
CALIFORNIA, DELEGATING AUTHORITY TO THE CITY MANAGER OR HIS
DESIGNEE TO APPROVE ADMINISTRATIVE POLICIES
WHEREAS, Section 2.08.060 of the Wildomar Municipal Code allows City Council to delegate authority to the City Manager to “(P)erform such other responsibilities and exercise such other powers as may be delegated to the City Manager from time to time by ordinance or resolution or other official action of the City Council.”; WHEREAS, Past practice has been that all policies, administrative and financial, are approved by City Council;
WHEREAS, as the City increases the number of staff and expands its scope of personnel administration, there is an increased need for a robust set of administrative policies that govern personnel administrative actions and do not have a fiscal impact nor significant political implications; and
WHEREAS, based on the City’s increased operational needs and to streamline administrative processes, delegating this authority to the City Manager will enhance the City’s ability to swiftly adopt administrative policies in compliance with the law and adopt risk mitigation measures.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF WILDOMAR DOES HEREBY FIND, DETERMINE AND RESOLVE AS FOLLOWS:
SECTION 1. ADMINISTRATIVE POLICIES. Administrative Policies do not have a fiscal impact and do not have significant political implications which are best addressed by the City Council. Typically, Administrative Policies are related to employee personnel administration, inform employees of office rules, and do not apply to City Council. Some examples of Administrative Policies include, but are not limited to, policies which govern use of City electronic devices, business expectations, chain of command procedures, telecommuting practices, and the workplace violence prevention policy and plan. The workplace violence prevention policy is attached as an example of an Administrative Policy as Exhibit A.
SECTION 2. CITY MANAGER AUTHORITY. The City Council delegates the authority to adopt new Administrative Policies to the City Manager. The City Manager will use his discretion to determine whether an Administrative Policy has significant political implications or otherwise does not fall within the definition of Administrative Policy set forth in Section 1, at which time the City Manager will refer the policy to City Council for adoption.
SECTION 3. AVAILABILITY FOR REVIEW. All adopted Administrative Policies will be kept in a notebook in Human Resources for review by City Council and / or City 244
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employees during working hours. The policies will also be available on the City’s website under the Human Resources web page.
SECTION 4. AUTHORITY TO REPEAL. Notwithstanding the authority delegated under Section 2 of this Resolution, the City Council retains the authority to repeal any Administrative Policy, if the City Council by a majority vote determines that such adopted policy does not comport with the Administrative Policy definition provided in Section 1 of this Resolution.
PASSED, APPROVED, AND ADOPTED this 9th day of August 2023. ______________________________
Joseph Morabito
Mayor
APPROVED AS TO FORM: ATTEST:
______________________________ ______________________________ Thomas D. Jex Janet Morales
City Attorney City Clerk
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ADMINISTRATIVE POLICY
PROHIBITING WORKPLACE VIOLENCE
I. OBJECTIVE
The City of Wildomar (“City”) is strongly committed to ensuring the safety of all City employees and to provide them with a safe and secure workplace. For purposes of this policy, the workplace includes any location where City business is conducted, including but not limited to City-owned or leased buildings and surrounding areas, such as sidewalks, walkways, driveways, and parking lots under the City’s ownership or control. This policy also applies to all City-owned or leased vehicles and all vehicles that come onto City property.
Consistent with this policy, acts or threats, whether verbal or physical, of violence, including intimidation, harassment, and/or coercion, which involve or affect City employees, will not be tolerated and will be subject to appropriate disciplinary action, up to and including termination. In addition, a violation of this policy may lead to criminal prosecution.
The City has also adopted an Illness and Injury Prevention Plan (IIPP), which contains a plan for workplace security. Employees may review that plan at the Department of Administrative Services, located at the Human Resources and Risk Manager’s Office.
II. THREATS OR ACTS OF VIOLENCE DEFINED
A credible threat of violence is a knowing and willful statement or course of conduct that would place a reasonable person in fear for their safety, or the safety of their immediate family, and that serves no legitimate purpose. Any person may present a credible threat of violence in the workplace, including, but not limited to, employees, visitors, and members of the public. General examples of prohibited workplace violence include, but are not limited to, the following:
1. Threatening to harm or harming an individual and/or their family, friends, associates, and/or their property;
2. Fighting, challenging another individual to a fight, or participating in dangerous or threatening horseplay;
3. Striking, punching, slapping, or assaulting another person;
4. Grabbing, pinching, or touching another person in an unwanted way whether sexually or otherwise;
5. Intimidation through direct or veiled verbal threats, or through physical threats, such as obscene gestures, grabbing, and pushing; 246
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6. Making harassing or threatening telephone calls; sending harassing or threatening letters, text messages, instant messages, emails, or other correspondence;
7. Intimidating or attempting to coerce an employee to do wrongful acts that would affect the business interests of the City;
8. Harassing surveillance or stalking, which is engaging in a pattern of conduct with the intent to follow, alarm, or harass another individual, which presents a credible threat to the individual and causes the individual to fear for their safety, or the safety of their immediate family, as defined in California Civil Code section 1708.7;
9. Suggesting or otherwise intimating that an act to injure persons or property is appropriate behavior;
10. Use of a personal or City-issued tool or other equipment in a threatening manner toward another;
11. Possession of firearms (loaded or unloaded), weapons, or any other dangerous devices on City property. This includes look-alike weapons, such as toy guns. Weapons and dangerous devices may include, but are not limited to, the following: tasers of any kind, pepper spray, blackjacks, slingshots, metal knuckles, explosive substances, dirks, daggers, gas- or spring-operated guns, knives, folding knives having a blade that locks into place, razor blades, clubs, poisons, and acids.
a. The City prohibits the possession or use of the weapons identified above, regardless of whether the employee
possesses a concealed carry weapon permit or is allowed by law to possess the weapon.
b. This section’s prohibition on the possession or use of a weapon does not apply when possession or use of a weapon is expressly authorized by the employee’s job description.
However, this exception is limited only to a weapon the employee is authorized or required to possess or use as part of their job, and not to any personal weapons or weapons that are not authorized or required for work-related use by that employee.
III. EMPLOYEE RESPONSIBILITIES
Employees are expected to exhibit workplace behaviors that demonstrate respect for others and professionalism at all times during working hours or while conducting City business. In addition to the prohibited acts of workplace violence detailed in section II above, employees shall refrain from the following:
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1. Engaging in verbal abuse of others;
2. Creating disturbances in the workplace causing co-workers to be concerned for their safety;
3. Bullying of employees;
4. Failure to notify City of domestic violence threats that impact the workplace or that are crossing over from home to work. This includes employees with civil restraining or stay-away orders against a current or former spouse or partner. Note, that it is not the City’s intent to pry into employees’ personal lives. However, when an employee has received a threat of domestic violence or the employee has filed domestic violence related civil order, the employee is required to notify human resources. Additionally, the Human Resources and Risk Manager may intervene with support, safety information, and access to resources, including law enforcement or domestic violence advocacy agencies.
Senate Bill 400 (SB400) protects employment rights of victims of domestic violence, sexual assault, and stalking. An employee is protected from firing or other discrimination because of the employee’s known status as a victim. Employees can request safety accommodations for any instances they feel the threat of domestic violence may carry over from home into the workplace. The City is required to provide reasonable safety accommodations to employees; however, the City may deny a request for accommodation if it constitutes an undue hardship.
SB 400 prohibits discrimination or retaliation against an employee requesting a safety accommodation as a result domestic violence, sexual assault , or stalking.
IV. SEARCHES OF PROPERTY
The City reserves the right at any time and at its discretion to search all City-owned or leased vehicles, including City property, for the purpose of determining whether any weapon is being, or has been, brought onto its property or premises in violation of this policy. Searches of employees’ personal property shall only be conducted in conformance with any applicable laws and regulations. Employees who fail or refuse to promptly permit a search under this policy will be subject to discipline, up to and including termination.
V. REPORTING WORKPLACE VIOLENCE
Any employee who is the victim of a threat or act of violence, or any employee who witnesses such conduct, should immediately report the incident to their supervisor or department head. The supervisor or department head will immediately report the matter to human resources. Should the employee perceive that they are in 248
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immediate danger of a violent act, or has just been victimized by a violent act, or is a witness of a violent act in progress, shall, as soon as possible:
1. Place themselves in a safe location;
2. If appropriate, call 911 and request immediate response of a police officer and be prepared to inform the dispatcher of the circumstances and the exact location of where assistance is needed;
3. If possible, warn other employees or members of the public who may also be in danger;
4. Inform a supervisor or human resources of the circumstances.
After the immediate threat has passed, the employee will be asked to complete a written report as soon as possible and submit the original copy to human resources. The employee should also cooperate fully in any administrative or criminal investigation, which shall be conducted within existing policy and laws.
VI. REPORTING FUTURE WORKPLACE VIOLENCE
Employees who have reason to believe, they or any City employee may be the subject of a violent act in the workplace, or because of their City employment, should immediately notify their supervisor or human resources.
VII. RESPONDING TO COMPLAINT OF WORKPLACE VIOLENCE
The Human Resources and Risk Manager or designee will document the incident, including the employee names(s), date/time, location, incident description, witness names and statements, description of unidentified parties, description of the act(s) and/or behavior arising from the incident, action taken, and provide any other relevant information regarding the incident.
The Human Resources and Risk Manager or designee will take appropriate steps, as deemed necessary, to provide security, such as:
1. Placing the employee alleged to have engaged in workplace violence on administrative leave, pending investigation;
2. Asking any threatening or potentially violent person to leave the site; or
3. Immediately contacting an appropriate law enforcement agency.
The Human Resources and Risk Manager will see that reported violations of this policy are investigated, as necessary. Such investigation may also include a threat assessment. Human resources is responsible for maintaining records and follow- up actions as to reports of workplace violence.
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VIII. NO RETALIATION
Employees shall not be retaliated against or threatened with retaliation for good faith reports or participation in investigation of actual or suspected incidents of workplace violence.
IX. VIOLENT INCIDENT LOG
The City will maintain a Violent Incident Log (“Log”) to record details about every workplace violence incident. The City will include details as required by law concerning each incident, which include: Date, time, location, violence type, description of incident, and consequence of the incident.
X. RECORDKEEPING
The City shall maintain records of workplace violence hazard identification, evaluation, and correction for a minimum of one year. Training records shall also be maintained for a minimum of one year and include details concerning the type of training and training attendees. The City shall maintain the Log for a minimum of five years.
XI. VIOLATION OF POLICY
The City prohibition against threats and acts of violence applies to all persons involving City operations, including but not limited to City personnel, contract and temporary workers, vendors, and anyone else on City property. Violations of this policy by any individual may be followed by legal action as appropriate, which may include criminal prosecution, seeking a temporary restraining order and/or injunction on behalf of City employees, if the situation warrants such action. In addition to appropriate legal action, violations of this policy by employees, including making a false report under this policy, may lead to appropriate disciplinary action, up to and including termination.
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WORKPLACE VIOLENCE PREVENTION PLAN
I. PURPOSE
The workplace violence prevention plan is created to increase awareness among City employees for the potential of violence within the organization and to recognize signs, remedies, and consequences of a violent act.
As the behavior of individuals can vary in unpredictable ways, the threat of workplace violence cannot be eliminated. However, management and employees can work together to identify and reduce the components frequently associated with workplace violence and be prepared to respond appropriately to threats of violence or a violent situation.
The purpose of this plan is to reduce the occurrence of injuries from workplace violence and decrease the potential and actual economic loss for employees, the public, and the City.
The workplace violence prevention plan is in compliance with Cal/OSHA's "Guidelines for Workplace Security", which requires employers to develop a workplace security component to their Injury and Illness Prevention Program (IIPP). Employees are advised that disciplinary action may result from violation of this plan or any workplace safety procedure. Employees are further advised that the principles of progressive discipline may be waived in instances of egregious or serious acts by employees.
Termination from employment is a possibility and may be the only disciplinary action that is taken.
II. DEFINITIONS
Threat of violence means a statement or conduct that causes a person to fear for their safety because there is a possibility the person might be physically injured and that serves no legitimate purpose.
Workplace violence means any threat or act of violence that occurs in a place of employment. The term shall not include lawful acts of self-defense or defense of others. Workplace violence includes the following:
1. The threat or use of physical force against an employee that results in, or has a high likelihood of resulting in, injury, psychological trauma, or stress, regardless of whether the employee sustains an injury;
2. An incident involving the threat or use of a firearm or other dangerous weapon, including the use of common objects as weapons, regardless of whether the employee sustains an injury;
3. Four workplace violence types:
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i. Type I violence means workplace violence committed by a person who has no legitimate business at the worksite and includes violent acts by anyone who enters the workplace with the intent to commit a crime;
ii. Type II violence means workplace violence directed at employees by customers, clients, patients, students, inmates, or visitors;
iii. Type III violence means workplace violence against an employee by a present or former employee, supervisor, or manager;
iv. Type IV violence means workplace violence committed in the workplace by someone who does not work there but has or is known to have had a personal relationship with an employee.
III. CITY RESPONSIBILITIES
The City is responsible for providing employees with education and training on policies relating to potentially violent situations in the workplace and will appoint a Threat Assessment Team to supervise workplace violence cases.
The team may consist of directors or City representatives from human resources, risk management, safety, security, facilities, city attorney’s office, behavioral or mental health, employee assistance program, or threat assessment consultants and has the following responsibilities:
A. Implement an action plan specifying assessing and responding to a potential workplace violence case, including:
1. personnel to contact in an emergency and their roles;
2. a post situation response as follows:
i. informing employees through internal communications, ii. updating the public information officer or designee the situation is under control, and
iii. providing counseling and/or critical incident stress debriefings for employees affected by the event.
B. Investigate incident:
1. Interview victims and witnesses immediately following incident to retrieve the most accurate information.
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i. Who committed the threat or act of violence?
ii. What was said, heard, or done (be exact as possible)? iii. When did the incident occur?
iv. Where did the incident take place?
v. Why was the act committed, if known, e.g., employee recently evaluated by his supervisor.
1. Inspect the scene of the incident and protect any evidence as soon as possible.
2. Take photographs of any personal injury or property damage.
NOTE: City reserves the right at any time and at its discretion to search all City- owned or leased vehicles, including City property, for the purpose of determining whether any weapon is being, or has been, brought onto its property or premises in violation of the City’s policy prohibiting workplace violence. Searches of employees’ personal property shall only be conducted in conformance with any applicable laws and regulations. Employees who fail or refuse to promptly permit a search under the City’s policy will be subject to discipline, up to and including termination.
3. Determine the direct or indirect causes of the incident. Include previous reports of inappropriate behavior by the perpetrator(s) and any corrective actions taken.
4. Record the results of the investigation and corrective actions taken.
C. Documentation and report shall be maintained in a confidential file by human resources.
D. Contact a workplace violence threat assessment specialist to evaluate the situation for additional corrective actions.
E. Inspect the workplace and evaluate work tasks of employees to determine presence of hazards, conditions, operations, and situations which might place workers at risk of assault incidents.
F. Coordinate Plan Implementation with other employers when the City employees perform work on a multi-employer worksite and when the City enters into a dual employer relationship with another employer. The City shall provide this Plan to any other employer in a shared workspace or in a join employer relationship with the City.
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G. Identify and institute control methods designed to eliminate or minimize the risks of assault incidents, including, but not limited to:
1. General building, workstation and area design, security measures, employee identification badges, and access control improvements;
2. Security equipment;
3. Work practice controls and procedures.
IV. MANAGEMENT AND SUPERVISORY RESPONSIBILITIES
The human resources department responsible for administering this policy and delegating authority to department heads for implementation. Department heads are responsible for implementing the plan, conducting or arranging training, and ensuring each employee fully understands and complies with the behavioral and reporting requirements.
A. Human resources is responsible for the following:
1. Identifying a potentially violent or troubled person during the initial job interview and screening process;
a. Require a completed job application form that includes a waiver and release for the City to verify reported information.
Ensure City compliance with applicable state and federal law when verifying applicant information. [ Note: Ensure that Human Resources does not initiate the background process until a conditional offer has been made, unless otherwise required by law, in compliance with the Fair Chance Act.
Contact legal counsel if you have questions about
implementation].
b. Never accept a résumé in place of a fully completed
application. Résumés do not contain an oath of truthfulness. c. Review a job application carefully with particular attention to unusual or suspicious entries.
d. Investigate gaps in employment and education history. This may reveal undesirable events such as incarceration or
involuntary termination. However, City evaluation of an applicant’s background will be in compliance with the Fair Chance Act and any other applicable law.
e. Always check references.
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2. Conducting periodic reviews of this policy with all City personnel;
3. Offering periodic workplace safety and security-related meetings for City personnel;
4. Posting and/or distributing information regarding workplace violence prevention on the internal or intranet website;
5. Reminding all employees through memos and training of the importance and urgency of reporting all threats or acts of workplace violence immediately after such an incident occurs, or when safe to do so, to a supervisor, human resources, department head, manager, or law enforcement. Reporting of a violent occurrence is mandatory and failure to do so could result in disciplinary action, up to and including termination;
6. Ensuring department personnel adhere to provisions of this policy;
7. Responding to and correcting workplace security issues.
B. Managers and supervisors must understand the following:
1. Terminating employment of a potentially unstable employee without using a plan based on empathy, support, and the ability to leave with their dignity intact, might cause that employee to harbor such resentment that he/she could return at some point seeking revenge.
The City should remain vigilant after high stress events and seek evidence of threats, confrontations on-site, boundary probing, or other high risk post-termination activities;
2. An employee assistance program (EAP), if available, may assist employees facing personal and professional stressors at work. The program and its services should be publicized, and referral information should be readily accessible.
V. EMPLOYEE RESPONSIBILITIES
In general, behavior that violates the policy against workplace violence detracts from, and impedes the ability of others to work in a violence-free environment. Such behavior will be viewed as inappropriate and will be addressed in accordance with the City’s disciplinary rules and regulations. Employees must report all acts of violence immediately after such an incident occurs, or when safe to do so, to a supervisor, human resources, department head, manager, or law enforcement. 255
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1. Report potential acts or threats of violence by co-workers, outsiders, taxpayers, and visitors (e.g., noticeable changes in a co-worker's or customer's demeanor);
2. Remain aware of the potential for workplace violence, including domestic violence at work;
3. Attend all workplace safety and security-related meetings;
4. Know how to respond to a potentially violent situation, including use of the national Department of Homeland Security protocol for active shooters inside the facility (Run-Hide-Fight).
VI. TRAINING
All employees, including managers and supervisors, should receive training on general and job-specific workplace security practices. Training should be provided when the workplace violence prevention plan is initially established and periodically thereafter. Training should also be provided to new employees, employees for whom training has not previously been provided, and to employees given new job assignments for which specific workplace security training has not previously been provided. Additional training will be provided to all City personnel as deemed necessary. Training records shall be created and maintained for a minimum of one year.
Training should include the following topics:
1. Explanation of the workplace violence prevention plan. City will also provide employees with access to this Plan;
2. Recognition of security hazards, including risk factors associated with the four types of workplace violence, per National Institute for Occupational Safety and Health (NIOSH);
3. Violence prevention measures, such as reporting security hazards or threats to managers or supervisors and other City safety and security stakeholders;
4. Ways to defuse hostile or threatening situations involving current or former employees, taxpayers, vendors, or strangers;
5. How to summon others for assistance, including using 911 for emergency help;
6. Discussion of employee routes of escape, including evacuation or sheltering in place protocols;
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7. Notification of law enforcement authorities when a criminal act may have or has occurred;
8. Post event critical incident stress management;
9. Employee participation in development and implementation of the Plan;
10. Review definitions and requirements of CalOSHA regulation section 3343 on workplace violence prevention plans;
11. Procedure to report workplace violence incidents or concerns without fear of retaliation;
12. Address workplace violence hazards that may be specific to the employees’ jobs, the corrective measures employer has
implemented, how to seek assistance to prevent or respond to violence, and strategies to avoid physical harm. City will also provide details regarding the violent incident log and ways to obtain the copies of records.
VII. VIOLATIONS
Reporting of a violent occurrence is mandatory and failure to do so could result in disciplinary actions, up to and including termination.
An employee found in violation will be provided all due process rights and is subject to discipline, up to and including termination. Principles of progressive discipline may be waived in instances of egregious or serious acts by employees. 257
CITY OF WILDOMAR
CC - REGULAR MEETING
CONSENT CALENDAR
Agenda Staff Report # 1.12
Meeting Date: August
9, 2023
SUBJECT:
Annexation No. 5, into Community Facilities District No. 2022-1 (Services) for Avalino (TR 31896)
SUBMITTED BY:
Emily Stadnik
PREPARED BY:
Ninette Eva
ACTION:
Adopt a Resolution entitled:
RESOLUTION NO. 2023 - _____
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WILDOMAR, CALIFORNIA,
DECLARING ITS INTENTION TO ANNEX TERRITORY TO COMMUNITY FACILITIES DISTRICT NO. 2022-1 (SERVICES), OF THE CITY OF WILDOMAR, ADOPTING A MAP OF THE AREA PROPOSED TO BE ANNEXED (ANNEXATION NO. 5) AND AUTHORIZING THE
LEVY OF SPECIAL TAXES THEREIN
BACKGROUND:
On June 8, 2022 the City Council adopted Resolution No. 2022-30 establishing Community Facilities District No. 2022-1 (Services) of the City of Wildomar (the "CFD No. 2022-1" or "District") and authorizing the levying of special taxes on parcels of taxable property for the purpose of providing certain services which are necessary to meet increased demands placed upon the City.
The owner, D.R. Horton Los Angeles Holding Company, Inc., of TR 31896 containing 41.76 gross acres within the City, has requested that the City annex this territory into CFD No. 2022- 1 (Services) to cover the costs associated with the maintenance of public improvements. The improvements proposed to be maintained include items such as lighting, street maintenance, drainage, parks, trails, and graffiti abatement.
In addition to maintaining public improvements the CFD No. 2022-1 will include a special tax to provide for financing of certain public services to meet increased demands of police and fire protection services as a result of the new developments that annex into the CFD.
The landowner has advised the City that it desires the area described in Exhibit A of the Resolution of Intention to be annexed into CFD No. 2022-1 and that a rate and method of 258
apportionment of special tax to be levied therein be established.
The area proposed within Annexation No. 5 will encompass 41.76 acres to include 117 single- family residential lots in TR 31896, with a FY 2023-24 maximum annual tax of $1,742 per residential unit, per year. The tract proposed to be annexed into CFD No. 2022-1 will be included in Tax Zone 5. This tax rate includes a Maximum Special Tax A of $788 per residential unit per year for maintenance services of public facilities, and Maximum Special Tax B of $451.50 per residential unit per year for safety services and a Special Tax C (Contingent) of $503 per residential unit per year. All of these tax rates are proposed to escalate each year. Maximum Special Tax A will increase by the greater of Consumer Price Index (CPI) or 2%, Special Tax B will increase by the greater of CPI or 5% and Special Tax C will increase by the greater of CPI or 2%, all not to exceed 6%. D.R. Horton Los Angeles Holding Company, Inc., has agreed to the annexation into the CFD and submitted a "Consent and Waiver" form on file in the City Clerk's Office, to initiate and conduct proceedings pursuant to the Mello-Roos Act of 1982, requesting the annexation of property to CFD No. 2022-1 (Services) and consenting to the shortening of election time requirements, waiving analysis and arguments, and waiving all notice requirements relating to conduct the election.
The next step to annex the property to CFD No. 2022-1 is to publish a notice of public hearing of the proposed annexation as required by the Mello-Roos Act. A public hearing on the matter will take place on September 13, 2023 and at that time the Council will formally consider approval of the property into Annexation No. 5.
FISCAL IMPACT:
The projected levy for FY 2023-24 is $92,136 for the first year of Special Tax A maintenance services. Special Tax B will generate $52,825 once all 117 residential units are developed.
Special Tax C, if needed, will generate $58,865.
ATTACHMENTS:
Attachment 1 - ROI Annex 5.docx
Attachment 1 - Ex. A - G.pdf
Attachment 2 - Project Map Annex 5.pdf
Attachment 3 - Maintenance Exhibit.pdf
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RESOLUTION NO. 2023 -
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF WILDOMAR, CALIFORNIA, DECLARING ITS
INTENTION TO ANNEX TERRITORY INTO
COMMUNITY FACILITIES DISTRICT NO. 2022-1
(SERVICES) OF THE CITY OF WILDOMAR, ADOPTING
A MAP OF THE AREA PROPOSED TO BE ANNEXED
(ANNEXATION NO. 5) AND AUTHORIZING THE LEVY
OF SPECIAL TAXES THEREIN
WHEREAS, on June 8, 2022, the City Council (the “City Council”) of the City of Wildomar (the “City”) approved Resolution No. 2022-30 establishing Community Facilities District No. 2022-1 (Services) ("CFD No. 2022-1"), of the City of Wildomar, County of Riverside, State of California, for the purpose of levying special taxes on parcels of taxable property therein for the purpose of providing certain services which are necessary to meet increased demands placed upon the City; and WHEREAS, the City Council has received a written instrument from the landowner to initiate and conduct proceedings pursuant to the Mello-Roos Community Facilities District Act of 1982 (the “Act”), to annex territory into CFD No. 2022-1 and consenting to the shortening of election time requirements, waiving analysis, and arguments, and waiving all notice requirements relating to the conduct of the election; and WHEREAS, the City Council has been advised that the landowner has requested that the area described and shown in Exhibit A be annexed into the boundaries of CFD No. 2022-1, that a rate and method of apportionment of special tax to be levied therein be established.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
WILDOMAR, ACTING EX OFFICIO AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 2022-1 (SERVICES) OF THE CITY OF WILDOMAR, DETERMINE AND ORDER AS FOLLOWS:
Section 1. Intent to Annex. The City Council hereby declares that it proposes and intends to conduct proceedings pursuant to Article 3.5 of the Act for the annexation to CFD No. 2022-1 of the territory described in Exhibit A attached hereto. The City Council determines that the public convenience and necessity require that such territory be annexed into CFD No. 2022-1.
Section 2. Name of the Community Facilities District. The name of the existing community facilities district is known as “Community Facilities District No. 2022-1 (Services).”
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Section 3. Description of Territory Proposed to be Annexed, Annexation Map. The territory proposed to be annexed is included within the boundaries within which property may annex to CFD No. 2022-1 and is more particularly described and shown on that certain map entitled “Proposed Boundary Map Community Facilities District No. 2022-1 of the City of Wildomar (Services) of the City of Wildomar, County of Riverside, State of California” as recorded on April 19, 2022 in Book 88 of Maps of Assessment and Community Facilities District, Pages 77, and as Instrument No. 2022- 0183915 in the official records of the County of Riverside. The territory proposed to be annexed to CFD No. 2022-1 is described in Exhibit A attached hereto and by this reference made a part hereof. Such territory is also shown and described on the map thereof entitled "Proposed Annexation Map No. 5, Community Facilities District No. 2022-1 (Services), City of Wildomar, County of Riverside, State of California," which is on file with the City Clerk (the "Annexation Map") and attached hereto as Exhibit D.
Section 4. Description of Authorized Services. The services proposed to be financed by CFD No. 2022-1 (the “Services”) are described in Exhibit B attached hereto. The cost of providing the Services includes “administrative expenses,” which include costs associated with the creation of CFD No. 2022-1, determination of the amount of special taxes, collection or payment of special taxes, or costs otherwise incurred in order to carry out the authorized purposes of CFD No. 2022-1. The Services authorized to be financed by CFD No. 2022-1 are in addition to those currently provided in the territory of CFD No. 2022-1 and do not supplant services already available within that territory.
Section 5. Levy of Special Taxes. Except where funds are otherwise available, a special tax sufficient to pay the costs of the Services (including administrative expenses), secured by recordation of a continuing lien against all nonexempt real property in CFD No. 2022-1, will be levied annually within CFD No. 2022-1. The rate and method of apportionment, and manner of collection of the special taxare specified in Exhibit C.
Section 6. Adoption of Annexation Map. Pursuant to Section 3110.5 of the Streets and Highways Code, the City Council adopts the Annexation Map attached hereto as Exhibit D as the map of the area proposed to be annexed to CFD No. 2022-1. Pursuant to Section 3111 of said Code, the City Clerk shall file the original of the Annexation map in her office and shall file a copy of the Annexation Map with the County Recorder of the County of Riverside no later than 15 days prior to the date of the hearing specified in Section 7 hereof.
Section 7. Public Hearing. The City Council hereby fixes 6:00 p.m., or as soon thereafter as practicable, on Wednesday, September 13, 2023, in the City Council Chambers located at 23873 Clinton Keith Rd., Wildomar, California 92595, as the time and place when and where the City Council will conduct a public hearing on the proposed annexation of the said territory to CFD No. 2022-1.
Section 8. Notice of Public Hearing. The City Clerk is hereby directed to publish, or cause to be published, a notice of said public hearing, in substantially the form attached hereto as Exhibit F, one time in a newspaper of general circulation published in the area of CFD No. 2022-1. The publication of said notice shall be completed at least seven days prior to the date herein fixed for said hearing. Said notice shall 261
contain the information prescribed by Section 53322 of the Act.
Section 9. Mailing Ballots. In anticipation of its action on Wednesday, September 13, 2023 to call the election on the annexation for the same date, pursuant to waiver of election time limits from the landowners, the City Council hereby authorizes the City Clerk to mail to each landowner in the territory proposed to be annexed to the CFD No. 2022-1 a ballot in substantially the form set forth in Exhibit G hereto. A copy of the waiver and consent form signed by the property owner is attached hereto as Exhibit E and incorporated herein by this reference.
PASSED, APPROVED, AND ADOPTED this 9th day of August 2023.
Joseph Morabito
Mayor
APPROVED AS TO FORM: ATTEST:
Thomas D. Jex Janet Morales
City Attorney City Clerk
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EXHIBIT A
DESCRIPTION OF PROPOSED TERRITORY TO BE ANNEXED
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DESCRIPTION OF PROPOSED TERRITORY TO BE ANNEXED
The City of Wildomar Community Facilities District No. 2022-1 (Services) (the “CFD No. 2022-1”) Annexation No. 5, is currently comprised of seven (7) parcels located within the city boundaries. The property is identified by the following Riverside County Assessor's Parcel Number (APN).
APN Owner Name
380-160-017 D.R. Horton Los Angeles Holding Company, Inc. 380-160-018 D.R. Horton Los Angeles Holding Company, Inc. 380-210-003 D.R. Horton Los Angeles Holding Company, Inc. 380-210-004 D.R. Horton Los Angeles Holding Company, Inc. 380-210-005 D.R. Horton Los Angeles Holding Company, Inc. 380-210-008 D.R. Horton Los Angeles Holding Company, Inc. 380-210-016 D.R. Horton Los Angeles Holding Company, Inc.
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EXHIBIT B
DESCRIPTION OF SERVICES
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CITY OF WILDOMAR
COMMUNITY FACILITIES DISTRICT NO. 2022-1 (SERVICES)
DESCRIPTION OF AUTHORIZED SERVICES
The services which may be financed with proceeds of the special tax of CFD No. 2022-1, as provided by Section 53313 of the Act, will include all costs attributable to maintaining, servicing, cleaning, repairing and/or replacing landscaped areas (may include reserves for replacement) in public street right-of-ways, public landscaping, public open spaces and other similar landscaped areas officially dedicated for public use. In addition, the services which may include some or all costs attributable to police protection, and fire services. These services including the following:
(a) maintenance and lighting of parks, parkways, streets, roads and open space, which maintenance and lighting services may include, without limitation, furnishing of electrical power to street lights; repair and replacement of damaged or inoperative light bulbs, fixtures and standards; maintenance (including irrigation and replacement) of landscaping vegetation situated on or adjacent to parks, parkways, streets, roads and open space; maintenance and repair of irrigation facilities; maintenance of public signage; graffiti removal from and maintenance and repair of public structures situated on parks, parkways, streets, roads and open space; maintenance and repair of playground or recreation program equipment or facilities situated on any park; and
(b) maintenance and operation of water quality improvements which include storm drainage and flood protection facilities, including, without limitation, drainage inlets, catch basin inserts, infiltration basins, flood control channel s, fossil fuel filters, and similar facilities.
Maintenance services may include but is not limited to the repair, removal or replacement of all or part of any of the water quality improvements, fossil fuel filters within the public right-of-way including the removal of petroleum hydrocarbons and other pollutants from water runoff, or appurtenant facilities, clearing of inlets and outlets; erosion repairs; and cleanup to improvements, and other items necessary for the maintenance, servicing; or both of the water quality basin improvements within flood control channel improvements; and
(c) public street sweeping, on the segments of the arterials within the boundaries of CFD No. 2022-1; as well as local roads within residential subdivisions located within CFD No. 2022-1; and any portions adjacent to the properties within CFD No. 2022-1; and
(d) police protection services, including but not limited to criminal justice services, and fire protection and suppression services.
In addition to payment of the cost and expense of the forgoing services, proceeds of the special tax may be expended to pay “Administrative Expenses,” as said term is defined in the Rate and Method of Apportionment.
The above services shall be limited to those provided within the boundaries of CFD No. 2022-1 or for the benefit of the properties within the boundaries of CFD No. 2022-1, as the boundary is expanded from time to time by anticipated annexations, and said services may be financed by proceeds of the special tax of CFD No. 2022-1 only to the extent that they are in addition to those provided in the territory of CFD No. 2022-1 before CFD No. 2022-1 was created. 266
EXHIBIT C
RATE AND METHOD OF APPORTIONMENT
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RATES AND METHOD OF APPORTIONMENT OF SPECIAL TAX FOR
COMMUNITY FACILITIES DISTRICT NO. 2022-1 (SERVICES)
OF THE CITY OF WILDOMAR
Special Taxes (defined below) shall be levied on and collected from each Assessor’s Parcel (defined below) in Community Facilities District No. 2022 -1 (Services) of the City of Wildomar (the “ CFD No. 2022-1” or “CFD”; defined below), in each Fiscal Year, (defined below), commencing in the Fiscal Year beginning July 1, 2022, in an amount determined by the City Council of the City of Wildomar, acting ex officio as the legislative body of CFD No. 2022-1, by applying the rates and method of apportionment set forth below.
All of the real pro perty in CFD No. 2022-1, unless exempted by law or by the provisions herein, shall be taxed to the extent and in the manner provided herein.
A. DEFINITIONS
“Accessory Dwelling Unit” means a residential unit of limited size including a smaller second unit that shares an Assessor’s Parcel as a Single Family Residential Property with a stand-alone Residential Unit.
“Acre” or “Acreage” means the land area of an Assessor’s Parcel as shown on any Assessor’s Parcel Map, or if the land area is not shown on the Assessor’s Parcel Map, the land area as shown on the applicable Final Map, or if the area is not shown on the applicable Final Map, the land area shall be calculated by the Administrator.
“Administrative Expenses” means the actual or reasonably estimated costs directly related to the formation, annexation, and administration of CFD No. 2022 -1 including, but not limited to: the costs of computing the Special Taxes and preparing the annual Special Tax collection schedules (whether by the City or designee thereof or both); the costs to the City, CFD No. 2022-1, or any designee thereof associated with fulfilling the CFD No. 2022-1 disclosure requirements; the costs associated with responding to public inquiries regarding the Special Taxes; the costs of the City, CFD No. 2022-1 or any designee thereof related to an appeal of the Special Tax; and the City's annual administration fees and third party expenses.
Administrative Expenses shall also include amounts estimated or advanced by the City or CFD No. 2022- 1 for any other administrative purposes of CFD No. 2022- 1, including attorney's fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes.
“Administrator” means the City Manager of the City of Wildomar, or his or her designee.
“Approved Property” means all Assessor’s Parcels of Taxable Property that are included in a Final Map that was recorded prior to the March 1 of preceding the Fiscal Year in which the Special Tax is being levied and for which no building permit for new construction has been issued on or prior to March 1 preceding the Fiscal Year in which the Special Tax is being levied.
“Assessor’s Parcel” means a lot or parcel of land that is identifiable by an Assessor’s Parcel Number by the County Assessor of the County of Riverside.
“Assessor’s Parcel Map” means an official map of the Assessor of the County designating parcels by Assessor’s Parcel Number.
“Assessor’s Parcel Number” means that identification number assigned to a parcel by the County Assessor of the County.
"Building Permit" means the first legal document issued by the City giving official permission for new 268
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construction. For purposes of this definition, “Building Permit” may or may not include expired or cancelled building permits, or any subsequent building permit document(s) authorizing new construction on an Assessor’s Parcel that are issued or changed by the City after the first original issuance, as determined by the CFD Administrator
“Building Square Footage” or “BSF” means the floor area square footage reflected on the original construction building p ermit issued for construction of a building of Non -Residential Property and any Building Square Footage subsequently added to a building of such Taxable Property after issuance of a building permit for expansion or renovation of such building.
"Calendar Year" means the period commencing January 1 of any year and ending the following December
31. “CFD” or “CFD No. 2022 -1” means Community Facilities District No. 2022 -1 (Services) of the City of Wildomar.
“City” means the City of Wildomar.
“Contingent Services” means services permitted under the Mello-Roos Community Facilities Act of 1982 including, without limitation, those services authorized to be funded by CFD No. 2022-1 as set forth in the documents adopted by the City Council at the time the CFD was formed to be provided by the City in the event the Administrator makes a determination pursuant to Section C( 3) that a Property Owners’ Association fails to adequately provide such services.
“County” means the County of Riverside.
“Developed Property” means all Assessor’s Parcels that: (i) are included in a Final Map that was recorded prior to the January 1
st preceding the Fiscal Year in which the Special Tax is being levied, and (ii) have an Assessor’s Parcel Number from the County shown on an Assessor’s Parcel Map for the individual lot included on the Final Map, and (iii) a Building Permit for new construction was issued on or before May 1 st preceding the Fiscal Year in which the Special Tax is being levied.
“Exempt Property” means all As sessors’ Parcels designated as being exempt from the Special Tax as provided for in Section G.
“Final Map” means a subdivision of property by recordation of a final map, parcel map, or lot line adjustment, pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) or recordation of a condominium plan pursuant to California Civil Code 6624 that creates individual lots for which building permits may be issued without further subdivision.
“Fiscal Year” means the period from and including July 1 st of any year to and including the following June
30th.
“Land Use Category” or “LUC” means, any of the categories contained in Section B hereof to which an Assessor’s Parcel is assigned consistent with the land use approvals that have been received or proposed for the Assessor’s Parcel as of March 1 preceding the Fiscal Year in which the Special Tax is being levied.
“Maximum Special Tax” means the Maximum Special Tax A, Maximum Special Tax B, and/or Maximum Special Tax C (Contingent), as applicable.
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“Maximum Special Tax A” means the Maximum Special Tax A, as determined in accordance with Section C, below, that can be levied in any Fiscal Year on any Assessor's Parcel within CFD No. 2022-1.
“Maximum Special Tax B” means the Maximum Special Tax B, as determined in accordance with Section C, below, that can be levied in any Fiscal Year on any Assessor's Parcel within CFD No. 2022-1.
“Maximum Special Tax C (Contingent) ” means for each Assessor’s Parcel and each Fiscal Year, the maximum Special Tax C (Contingent), as determined in accordance with Section C below that can be levied on such Assessor’s Parcel in such Fiscal Year.
“Multi-Family Residential Property” or “MFR” means any Assessor’s Parcel of residential property that consists of a building or buildings comprised of attached Residential Units available for rental, but not purchase, by the general public and under common management.
“Non-Residential Property” or “NR” means, all Assessor's Parcels of Taxable Property for which a building permit(s) was issued for a non -residential use. The Administrator shall make the determination if an Assessor’s Parcel is Non-Residential Property.
“Property Owner’s Association” or “POA” means the property owner’s association or homeowner’s association established to maintain certain services within a Tax Zone.
“Proportionately” means for Taxable Property that is: (i) Developed Property, that the ratio of the actual Special Tax levy to the Maximum Special Tax is the same for all Parcels of Developed Property, (ii) Approved Property, that the ratio of the actual Special Tax levy to the Maximum Special Tax is the same for all Parcels of Approved Property, and (iii) Undeveloped Property that the ratio of the actual Special Tax levy per acre to the Maximum Special Tax per acre is the same for all Parcels of Undeveloped Property.
“Residential Unit” or "RU" means a residential unit that is used or intended to be used as a domicile by one or more persons, as determined by the Administrator. An Accessory Dwelling Unit that shares an Assessor’s Parcel with a Single Family Residential Prope rty shall not be considered a Residential Unit for purposes of this RMA.
“Residential Property” means all Assessor’s Parcels of Taxable Property upon which completed Residential Units have been constructed or for which building permits have been or may be issued for purposes of constructing one or more Residential Units.
“RMA" means this Rate and Method of Apportionment of Special Taxes.
“Service(s)” means services permitted under the Mello-Roos Community Facilities Act of 1982 including, without limitat ion, those services authorized to be funded by CFD No. 2022 -1 as set forth in the documents adopted by the City Council at the time the CFD was formed.
“Single Family Residential Property” or “SFR” means any residential property that consists of a building comprised of attached or detached residential units available for purchase or rent by the general public.
“Special Tax(es)” means the Special Tax A and/or Special Tax B and/or Special Tax C (Contingent) to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property.
“Special Tax A” means the annual special tax to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property to fund the Special Tax A Requirement. 270
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"Special Tax A Requirement" means that amount to be collected in any Fiscal Year to pay for certain costs as required to meet the needs of CFD No. 2022-1 in the next Fiscal Year. The costs to be covered shall be the direct costs for maintenance services including but not limited to (i) maintenance and lighting of parks, parkways, streets, roads, and open space, (ii) maintenance and operation of water quality improvements, (iii) public street sweeping, (iv) fund an operating reserve for the costs of Services as determined by the Administrator, and (v) Administrative Expenses. Under no circumstances shall the Special Tax A Requirement include funds for bonds or other forms of indebtedness.
“Special Tax B” means the annual special tax to be levied in each Fiscal Year on each Assessor’s Parcel of Developed Property to fund the Special Tax B Requirement.
"Special Tax B Requirement" means that amount to be collected in any Fiscal Year to pay for certain costs as required to meet the needs of CFD No. 2022-1 in the next Fiscal Year. The costs to be covered shall be the direct costs for (i) police protection services, (ii) fire protection and suppression services, (iii) fund an operating reserve for the costs of Services as determined by the Administrator, and (iv) Administrative Expenses. Under no circumstances shall the Special Tax B Requirement include funds for bonds or other forms of indebtedness.
“Special Tax C (Contingent)” means the annual special tax to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property to fund the Special Tax C (Contingent) Requirement, if required.
“Special Tax C (Contingent) Requirement” means that amount required in any Fiscal Year, if the POA is unable to maintain the Contingent Service(s) to: (i) pay the costs of Contingent Services incurred or otherwise payable in the Calendar Year commencing in such Fiscal Year; (ii) fund an operating reserve for the costs of Contingent Services as determined by the Administrator; less a credit for funds available to reduce the annual Special Tax C (Contingent) levy as determined by the Administrator . Under no circumstances shall the Special Tax C (Contingent) Requirement include funds for bonds or other forms of indebtedness..
"Taxable Property" means all Assessor’s Parcels within CFD No. 2022-1, which are not Exempt Property.
“Taxable Unit” means a Residential Unit, Building Square Footage, or an Acre.
"Tax Zone" means a mutually exclusive geographic area, within which particular Special Tax rates may be levied pursuant to this Rate and Method of Apportionment of Special Tax.
"Tax Zone Original" means the geographic area the specific area identified on the CFD Boundary Map as Tax Zone Original.
"Tract(s)" means an area of land within a subdivision identified by a particular tract number on a Final Map approved for the subdivision.
“Undeveloped Property” means, for each Fiscal Year, all Taxable Property not classified as Developed Property or Approved Property.
B. ASSIGNMENT TO LAND USE CATEGORIES
For each Fiscal Year, all Assessor’s Parcels of Taxable Property within CFD No. 2022-1 shall be classified as Developed Property, Approved Property, or Undeveloped Property, and shall be subject to the levy of Special Taxes as determined pursuant to Sections C and D below. Assessor’s Parcels of Developed Property 271
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and Approved Property shall be classified as either Residential Property or Non -Residential Property.
Residential Property shall be further classified as Single Family Residential Property or Multi- Family Residential Property and the number of Residential Units shall be determined by the Administrator.
C. MAXIMUM SPECIAL TAX RATES
For purposes of determining the applicable Maximum Special Tax for Assessor’s Parcels of Developed Property and Approved Property which are classified as Residential Property, all such Assessor’s Parcels shall be assigned the number of Residential Unit(s) constructed or to be constructed thereon as specified in or shown on the building permit(s) issued or Final Map as determined by the Administrator. Once a single family attached or multi-family building or buildings have been built on a n Assessor's Parcel, the Administrator shall determine the actual number of Residential Units contained within the building or buildings, and the Special Tax A and Special Tax C (Contingent) levied against the Assessor’s Parcel in the next Fiscal Year shall be calculated by multiplying the actual number of Residential Units by the Maximum Special Tax per Residential Unit for the Tax Zone below or as included in Appendix A as each annexation occurs.
For purposes of determining the applicable Maximum Special Tax for Assessor’s Parcels of Developed Property and Approved Property which are classified as Non -Residential Property, all such Assessor’s Parcels shall be assigned the number of Building Square Footage or Acres as shown on the Final Map as determined by the Administrator. Once the Administrator determines the actual number of Building Square Footage or Acres for the Assessor’s Parcels, the Special Tax A, Special Tax B, and Special Tax C (Contingent) levied against the Assessor’s Parcel in the next Fiscal Year shall be calculated by multiplying the number of Building Square Footage or Acres by the Maximum Special Tax per Taxable Unit identified for the applicable Tax Zone below or as included in Appendix A as each annexation occurs.
1. Special Tax A
a. Developed Property
(i) Maximum Special Tax A
The Maximum Special Tax A for each Assessor’s Parcel of Developed Property shall be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2022-1, Appendix A to this RMA shall be updated to reflect the Maximum Special Tax A for Developed Property for the Tract or Tracts annexed and the Special Tax A shall be levied up to the Maximum Special Tax A for Developed Property for such Tract or Tracts as specified in such updated Appendix A for the annexed property which shall reflect the Maximum Special Tax for the Tract or Tracts annexed. The Maximum Special Tax A for Fiscal Year 2022-2023 for a Residential Unit of Developed Property within the Tax Zone Original are identified in Table 1 below:
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TABLE 1
MAXIMUM SPECIAL TAX A RATES
DEVELOPED PROPERTY
FISCAL YEAR 2022-2023
Tax
Zone Tract Land Use Category
Taxable
Unit
Maximum
Special Tax A
Original TR 36672
Single Family Residential Property RU $408
Multi-Family Residential Property RU $408
Non-Residential Property Acre $5,267
(ii) Increase in the Maximum Special Tax A
On each July 1, commencing on July 1, 2023 with respect to Tax Zone Original, the Maximum Special Tax A for Developed Property shall increase by i) the percentage increase in the Consumer Price Index for all Urban Consumers f or the Riverside- San Bernardino -Ontario California Standard Metropolitan Statistical Area since the beginning of the preceding Fiscal Year, not to exceed 6%, or ii) by two percent (2.0%), whichever is greater.
(iii) Multiple Land Use Categories
In some instances an Assessor's Parcel of Developed Property may contain more than one Land Use Category. The Maximum Special Tax A that can be levied on an Assessor's Parcel shall be the sum of the Maximum Special Tax A that can be levied for each Land Use Category located on that Assessor's Parcel. For an Assessor's Parcel that contains more than one land use, the Acreage of such Assessor's Parcel shall be allocated to each type of property based on the amount of Acreage designated for each land use as determined by reference to the site plan approved for such Assessor's Parcel. The Administrator's allocation to each type of property shall be final.
b. Approved Property
The Maximum Special Tax A for each Assessor’s Parcel of Approved Property in Table 2 is specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2022 -1, the Appendix A to this rate and method shall be updated to reflect the Maximum Special Tax A for Approved Property for the Tract or Tracts annexed and the Special Tax A shall be levied up to the Maximum Special Tax A for Approved Property for such Tract or Tracts as specified in such updated Appendix A. The Maximum Special Tax A for Fiscal Year 2022-2023 per Residential Unit for Approved Property within Tax Zone Original is identified in Table 2 below:
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TABLE 2
MAXIMUM SPECIAL TAX A RATES
APPROVED PROPERTY
FISCAL YEAR 2022-2023
Tax
Zone Tract Land Use Category
Taxable
Unit
Maximum
Special Tax A
Original TR 36672
Single Family Residential Property RU $408
Multi-Family Residential Property RU $408
Non-Residential Property Acre $5,267
On each July 1, commencing on July 1, 2023 with respect to Tax Zone Original, the Maximum Special Tax A for Approved Property shall increase by i) the percentage increase in the Consumer Price Index for all Urban Consumers for the Riverside-San Bernardino-Ontario California Standard Metropolitan Statistical Area since the beginning of the preceding Fiscal Year, not to exceed 6%, or ii) by two percent (2.0%), whichever is greater.
c. Undeveloped Property
The Maximum Special Tax A for each Assessor’s Parcel of Undeveloped Property shall be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2022-1, Appendix A to this rate and method adopted shall be updated to reflect the Maximum Special Tax A for Undeveloped Property for the Tract or Tracts annexed and the Special Tax A shall be levied up to the Maximum Special Tax A for Undeveloped Property for such Tract or Tracts as specified in such updated Appendix A. The Maximum Special Tax A for Fiscal Year 2022-2023 per acre of Undeveloped Property within Tax Zone Original is identified in Table 3 below:
TABLE 3
MAXIMUM SPECIAL TAX A RATES
UNDEVELOPED PROPERTY
FISCAL YEAR 2022-2023
Tax Zone Tracts Taxable Unit Maximum Special Tax A
Original TR 36672 Acre $5,267
On each July 1, commencing on July 1, 2023 with respect to Tax Zone Original, the Maximum Special Tax A for Undeveloped Property shall increase by i) the percentage increase in the Consumer Price Index for all Urban Consumers for the Riverside-San Bernardino -Ontario California Standard Metropolitan Statistical Area since the beginning of the preceding Fiscal Year, not to exceed 6%, or ii) by two percent (2.0%), whichever is greater.
2. Special Tax B
The Special Tax B is an annual Special Tax that shall be levied on Developed Property to fund the Special Tax B Requirement.
a. Developed Property
(i) Maximum Special Tax B
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The Maximum Special Tax B for Fiscal Year 2022-2023 for each Land Use Category within Tax Zone Original is shown in Table 4. When additional property is annexed into CFD No. 2022-1, Appendix A to this rate and method shall be updated to reflect the Maximum Special Tax B for the Tract or Tracts annexed and the Special Tax B shall be levied up to the Maximum Special Tax B for Developed Property for such Tract or Tracts as specified in such updated Appendix A.
TABLE 4
MAXIMUM SPECIAL TAX B RATES
DEVELOPED PROPERTY
FISCAL YEAR 2022-2023
Land Use Category Unit Maximum Special Tax B
Single Family Residential Property RU $430
Multi-Family Residential Property RU $305
On each July 1, commencing on July 1, 2023 with respect to Tax Zone Original, the Maximum Special Tax B for Developed Property shall increase by i) the percentage increase in the Consumer Price Index for all Urban Consumers for the Riverside -San Bernardino -Ontario California Standard Metropolitan Statistical Area since the beginning of the preceding Fiscal Year, not to exceed 6%, or ii) by five percent (5.0%), whichever is greater.
The Special Tax B shall not be levied on Approved or Undeveloped Property.
3. Special Tax C (Contingent)
The City Council shall levy Special Tax C (Contingent) only in the event the POA defaults in its obligation to maintain the Contingent Services, which default shall be deemed to have occurred, as determined by the Administrator, in each of the following circumstances:
(a) The POA files for bankruptcy;
(b) The POA is dissolved;
(c) The POA ceases to levy annual assessments for the Contingent Services; or (d) The POA fails to provide the Contingent Services at the same level as the City provides similar services and maintains similar improvements throughout the City and within ninety (90) days after written notice from the City, or such longer period permitted by the City Manager, fails to remedy the deficiency to the reasonable satisfaction of the City Council.
a. Developed Property
(i) Maximum Special Tax C (Contingent)
The Maximum Special Tax C (Contingent) for each Assessor’s Parcel of Taxable Property shall be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2022- 1, Appendix A to this rate and method shall be updated to reflect Maximum Special Tax C (Contingent) for the Tract or Tracts annexed and the Special Tax C (Contingent) shall be levied up to the Maximum Special Tax C (Contingent) for Developed Property for such Tract or Tracts as specified in such updated Appendix A . The Maximum Special Tax C (Contingent) for Fiscal Year 2022-2023 within Tax Zone Original is identified in Table 5 below:
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TABLE 5
MAXIMUM SPECIAL TAX C (CONTINGENT) RATES
DEVELOPED PROPERTY
FISCAL YEAR 2022-2023
Tax
Zone Tract Land Use Category
Taxable
Unit
Maximum
Special Tax C
(Contingent)
Original TR 36672
Single Family Residential Property RU $261
Multi-Family Residential Property RU $261
Non-Residential Property Acre $3,372
(ii) Increase in the Maximum Special Tax C (Contingent)
On each July 1, commencing on July 1, 2023 with respect to Tax Zone Original, the Maximum Special Tax C (Contingent) for Developed Property shall increase by i) the percentage increase in the Consumer Price Index for all Urban Consumers for the Riverside-San Bernardino-Ontario California Standard Metropolitan Statistical Area since the beginning of the preceding Fiscal Year, not to exceed 6%, or ii) by two percent (2.0%), whichever is greater.
(iii) Multiple Land Use Categories
In some instances, an Assessor's Parcel of Developed Property may contain more than one Land Use Category. The Maximum Special Tax C (Contingent) that can be levied on an Assessor's Parcel shall be the sum of the Maximum Special Tax C (Contingent) that can be levied for each Land Use Category located on that Assessor's Parcel. For an Assessor's Parcel that contains more than one land use, the Acreage of such Assessor's Parcel shall be allocated to each type of property based on the amount of Acreage designated for each land use as determ ined by reference to the site plan approved for such Assessor's Parcel. The Administrator's allocation to each type of property shall be final.
b. Approved Property
The Maximum Special Tax C (Contingent) for each Assessor’s Parcel of Approved Property shall be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2022- 1, Appendix A to this rate and method shall be updated to reflect the Maximum Special Tax C (Contingent) for the Tract or Tracts annexed and the Special Tax C (Contingent) shall be levied up to the Maximum Special Tax C (Contingent) for Approved Property for such Tract or Tracts as specified in such updated Appendix A . The Maximum Special Tax C (Contingent) for Fiscal Year 2022-2023 within Tax Zone Original is identified in Table 6 below:
276
City of Wildomar 10
Community Facilities District No. 2022-1 (Services)
TABLE 6
MAXIMUM SPECIAL TAX C (CONTINGENT) RATES
APPROVED PROPERTY
FISCAL YEAR 2022-2023
Tax
Zone Tract Land Use Category
Taxable
Unit
Maximum
Special Tax C
(Contingent)
Original TR 36672
Single Family Residential Property RU $261
Multi-Family Residential Property RU $261
Non-Residential Property Acre $3,372
On each July 1, commencing on July 1, 2023 with respect to Tax Zone Original, the Maximum Special Tax C (Contingent) for Approved Property shall increase by i) the percentage increase in the Consumer Price Index for all Urban Consumers for the Riverside-San Bernardino-Ontario California Standard Metropolitan Statistical Area since the b eginning of the preceding Fiscal Year, not to exceed 6%, or ii) by two percent (2.0%), whichever is greater.
c. Undeveloped Property
The Maximum Special Tax C (Contingent) for each Assessor’s Parcel of Undeveloped Property shall be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2022-1, Appendix A to this rate and method shall be updated to reflect the Maximum Special Tax C (Contingent) for the Tract or Tracts annexed and the Special Tax C (Contingent) shall be levied up to the Maximum Special Tax C (Contingent) for Undeveloped Property for such Tract or Tracts as specified in such updated Appendix A . The Maximum Special Tax C (Contingent) for Fiscal Year 2022-2023 within Tax Zone Original is identified in Table 7 below:
TABLE 7
MAXIMUM SPECIAL TAX C (CONTINGENT) RATES
UNDEVELOPED PROPERTY
FISCAL YEAR 2022-2023
Tax Zone Tract Taxable Unit
Maximum Special
Tax C (Contingent)
Original TR 36672 Acre $3,372
On each July 1, commencing on July 1, 2023 with respect to Tax Zone Original, the Maximum Special Tax C (Contingent) for Undeveloped Property shall increase by i) the percentage increase in the Consumer Price Index for all Urban Consumers for the Riverside-San Bernardino-Ontario California Standard Metropolitan Statistical Area since the beginning of the preceding Fiscal Year, not to exceed 6%, or ii) by two percent (2.0%), whichever is greater.
D. METHOD OF APPORTIONMENT OF ANNUAL SPECIAL TAX
1. Special Tax A
Commencing with Fiscal Year 2022-2023 and for each following Fiscal Year in which Special Tax A is authorized to be levied, the Council shall determine the Special Tax A Requirement and shall levy 277
City of Wildomar 11
Community Facilities District No. 2022-1 (Services)
the Special Tax A on all Assessor’s Parcels of Taxable Property until the aggregate amount of Special Tax A equals the Special Tax A Requirement. The Special Tax A shall be levied for each Fiscal Year within each Tax Zone as follows:
First: The Special Tax A shall be levied Proportionately on all Assessor’s Parcels of Developed Property up to 100% of the applicable Maximum Special Tax A to satisfy the Special Tax A Requirement;
Second: If additional moneys are needed to satisfy the Special Tax A Requirement after the first step has been completed, the Special Tax A shall be levied Proportionately on each Parcel of Approved Property at up to 100% of the Maximum Special Tax A for Approved Property;
Third: If additional monies are needed to satisfy the Speci al Tax A Requirement after the first two steps has been completed, the Special Tax A shall be levied Proportionately on all Assessor’s Parcels of Undeveloped Property up to 100% of the Maximum Special Tax A for Undeveloped Property.
2. Special Tax B
Commencing with Fiscal Year 2022- 2023 and for each following Fiscal Year, the Council shall determine the Special Tax B Requirement and shall levy the Special Tax B until the aggregate amount of Special Tax B equals the Special Tax B Requirement.
The Special Tax B shall be levied Proportionately on all Assessor’s Parcels of Developed Property up to 100% of the applicable Maximum Special Tax B to satisfy the Special Tax B Requirement.
3. Special Tax C (Contingent)
Commencing with the first Fiscal Year in which Special Tax C (Contingent) is authorized to be levied and for each following Fiscal Year, the City Council shall determine the Special Tax C (Contingent) Requirement for each Tax Zone, if any, and shall levy the Special Tax on all Assessor’s Parcels of Taxable Property within such Tax Zone until the a ggregate amount of Special Tax C (Contingent) equals the Special Tax C (Contingent) Requirement for such Tax Zone. The Special Tax C (Contingent) shall be levied for each Fiscal Year as follows:
First: The S pecial Tax C (Contingent) shall be levied P roportionately on all Assessor’s Parcels of Developed Property up to 100% of the applicable Maximum Special Tax C (Contingent) to satisfy the Special Tax C (Contingent) Requirement;
Second: If additional moneys are needed to satisfy the Special Tax C (Contingent) Requirement after the first step has been completed, the Special Tax C (Contingent) shall be levied Proportionately on each Parcel of Approved Property at up to 100% of t he Maximum Special Tax C (Contingent) for Approved Property;
Third: If additional monies are needed to satisfy the Special Tax C (Contingent) Requirement after the first two steps has been completed, the Special Tax C (Contingent) shall be levied Proportionately on all Assessor’s Parcels of Undeveloped Property up to 100% of the Maximum Special Tax C (Contingent) for Undeveloped Property.
278
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Community Facilities District No. 2022-1 (Services)
E. FUTURE ANNEXATIONS
It is anticipated that additional properties will be annexed to CFD No. 2022 -1 from time to time. As each annexation is proposed, an analysis will be prepared to determine the annual cost for providing Services.
Based on this analysis, the property to be annexed, pursuant to California Government Code section 53339 et seq. will be assigned to the appropriate Maximum Special Tax rate for the Tract or Tracts when annexed.
F. TERM OF SPECIAL TAX
For each Fiscal Year, the Special Taxes shall be levied as long as the Services are being provided.
G. EXEMPTIONS
The City shall classify as Exempt Property within CFD No. 2022 -1, any Assessor’s Parcel in any of the following categories; (i) Assessor’s Parcels whic h are owned by, irrevocably offered for dedication, encumbered by or restricted in use by any public entity; (ii) Assessor’s Parcels with public or utility easements making impractical their utilization for other than the purposes set forth in the easement; (iii) Assessor’s Parcels which are privately owned but are encumbered by or restricted solely for public uses; or (iv) any Assessor’s Parcel which is in use in the performance of a public function as determined by the Administrator. No Special Tax shall be levied on property which, at the time of adoption of the Resolution of Formation for CFD No. 2022-1, is an Exempt Property.
H. APPEALS
Any property owner claiming that the amount or application of the Special Taxes are not correct may file a written notice of appeal with the City not later than twelve months after having paid the first installment of the Special Tax(es) that is disputed. A representative(s) of CFD No. 2022- 1 shall promptly review the appeal, and if necessary, meet with the property owner, consider written and oral evidence regarding the amount of the Special Tax, and rule on the appeal. If the representative’s decision requires that the Special Tax for an Assessor’s Parcel be modified or changed in favor of the property owner, a cash refu nd shall not be made, but an adjustment shall be made to the Special Tax on that Assessor’s Parcel in the subsequent Fiscal Year(s).
I. MANNER OF COLLECTION
The Special Tax(es) shall be collected in the same manner and at the same time as ordinary ad valorem property taxes, provided, however, that CFD No. 2022-1 may collect the Special Tax at a different time or in a different manner if necessary to meet its financial obligations.
279
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Community Facilities District No. 2022-1 (Services)
APPENDIX A
CITY OF WILDOMAR
COMMUNITY FACILITIES DISTRICT NO. 2022-1 (SERVICES)
COST ESTIMATE
Special Tax A Services – The estimate breaks down the costs of providing one year’s maintenance services for FY 2023-2024. These services are being funded by the levy of Special Tax A for Community Facilities District No. 2022-1 (Services).
TAX ZONE 5 – SPECIAL TAX A
TR 31896
Item Description Estimated Cost
1 Lighting $5,617
2 Streets $45,813
3 Drainage $2,351
4 Parks $15,272
5 Trails $6,465
6 Graffiti $259
7 Reserves $8,631
8 Admin $7,728
Total $92,136
Special Tax B Services – It is estimated that the cost of providing Police and Fire Protection services being funded by Special Tax B for the Community Facilities District No. 2022 -1 (Services) as outlined in Exhibit “B” hereto, will be as follows for the first year:
TAX ZONE 5 – SPECIAL TAX B
TR 31896
Land Use Category Unit Maximum Special Tax B
Single-Family Residential Property RU $451.50
Special Tax C (Contingent) Services – The estimate in the table below breaks down the costs of providing one year’s contingent maintenance services for Fiscal Year 2023 -24. If necessary, these services will be funded by the levy of Special Tax C (Contingent) for Community Facilities District No. 2022-1 (Services).
TAX ZONE 5 – SPECIAL TAX C (Contingent)
TR 31896
Item Description Estimated Cost
1 Landscaping $17,285
2 Drainage $31,644
3 Reserves $4,893
4 Admin $5,043
Total $58,865
280
City of Wildomar 14
Community Facilities District No. 2022-1 (Services)
TAX ZONE 5
TR 31896
FY 2023-2024 MAXIMUM SPECIAL TAX RATES
Taxable
Property
Land Use
Category
Taxable
Unit
Maximum
Special Tax A
Maximum
Special Tax B
Maximum
Special Tax C
(Contingent)
Developed Property Single-Family Residential RU $788 $451.50 $503 Approved Property Single-Family Residential RU $788 N/A $503 Undeveloped Property N/A Acre $4,100 N/A $2,620
281
City of Wildomar 15
Community Facilities District No. 2022-1 (Services)
MAXIMUM SPECIAL TAXES ASSIGNED TO EACH TAX ZONE
FOR DEVELOPED PROPERTY
Tax
Zone
Fiscal
Year
Included Tract
No. of
Taxable
Units LUC
Taxable
Unit
Maximum
Special
Tax A
Maximum
Special
Tax B
Maximum
Special Tax C
(Contingent) Subdivider
Original 2022-23 TR 36672 136 SFR RU $408 $430 $261 Lennar Homes 1 2022-23 PP 13-0089 170 MFR RU $203 $305 $0 Villa Siena Property LLC 2 2022-23 TR 37476 77 SFR RU $583 $430 $262 KB Home Coastal Inc. 3 To Be Determined
4 2023-24 PM 37941 9.62 NR Acre $4,060 $0 $0
Strata Baxter, LLC and
Kaiser Foundation
Health Plan, Inc.
5 2023-24 TR 31896 117 SFR RU $788 $451.50 $503
D.R. Horton Los
Angeles Holding Co.
6 2023-24 LLA 2022-004 89 MFR RU $153 $320.25 $0 Wildomar Tres Lagos Partners LP
7 2023-24 TR
36781/36782 191 SFR RU $255 $451.50 $0 CPR/CWR Westpark Project, LLC
ESCALATION OF MAXIMUM SPECIAL TAXES
Maximum Special Tax A - On each July 1, the Maximum Special Tax A for Developed Property, Approved Property and Undeveloped Property shall increase by i) the percentage increase in the Consumer Price Index for all Urban Consumers for the Riverside-San Bernardino-Ontario California Standard Metropolitan Statistical Area since the beginning of the preceding Fiscal Year, not to exceed 6%, or ii) by two percent (2.0%), whichever is greater.
Maximum Special Tax B - On each July 1, the Maximum Special Tax B for Developed Property shall increase by i) the percentage increase in the Consumer Price Index for all Urban Consumers for the Riverside -San Bernardino-Ontario California Standard Metropolitan Statistical Area since the beginning of the preceding Fiscal Year, not to exceed 6%, or ii) by five percent (5.0%), whichever is greater.
Maximum Special Tax C (Contingent) - On each July 1, the Maximum Special Tax C (Contingent) for Developed Property, Approved Property and Undeveloped Property shall increase by i) the percentage increase in the Consumer Price Index for all Urban Consumers for the Riverside -San Bernardino-Ontario California Standard Metropolitan Statistical Area since the beginning of the preceding Fiscal Year, not to exceed 6%, or ii) by two percent (2.0%), whichever is greater.
282
City of Wildomar 16
Community Facilities District No. 2022-1 (Services)
EXHIBIT B
CITY OF WILDOMAR
COMMUNITY FACILITIES DISTRICT NO. 2022-1 (SERVICES)
DESCRIPTION OF AUTHORIZED SERVICES
The services which may be financed with proceeds of the special tax of CFD No. 2022 -1, as provided by Section 53313 of the Act, will include all costs attributable to maintaining, servicing, cleaning, repairing and/or replacing landscaped areas (may include reserves for replacement) in public street right- of-ways, public landscaping, public open spaces and other similar landscaped areas officially dedicated for public use. In addition, the services which may include some or all costs attributable to police protection, and fire services. These services including the following:
(a) maintenance and lighting of parks, parkways, streets, roads and open space, which maintenance and lighting services may include, without limitation, furnishing of electrical power to street lights; repair and replacement of damaged or inoperative light bulbs, fixtures and standards; maintenance (including irrigation and replacement) of landscaping vegetation situated on or adjacent to parks, parkways, streets, roads and open space; maintenance and repair of irrigation facilities; mainten ance of public signage; graffiti removal from and maintenance and repair of public structures situated on parks, parkways, streets, roads and open space; maintenance and repair of playground or recreation program equipment or facilities situated on any park; and
(b) maintenance and operation of water quality improvements which include storm drainage and flood protection facilities, including, without limitation, drainage inlets, catch basin inserts, infiltration basins, flood control channels, fossil fuel filters, and similar facilities. Maintenance services may include but is not limited to the repair, removal or replacement of all or part of any of the water quality improvements, fossil fuel filters within the public right -of-way including the removal of petroleum hydrocarbons and other pollutants from water runoff, or appurtenant facilities, clearing of inlets and outlets; erosion repairs; and cleanup to improvements, and other items necessary for the maintenance, servicing; or both of the water quality b asin improvements within flood control channel improvements; and
(c) public street sweeping, on the segments of the arterials within the boundaries of CFD No. 2022-1; as well as local roads within residential subdivisions located within CFD No. 2022 -1; an d any portions adjacent to the properties within CFD No. 2022-1; and
(d) police protection services, including but not limited to criminal justice services, and fire protection and suppression services.
In addition to payment of the cost and expense of t he forgoing services, proceeds of the special tax may be expended to pay “Administrative Expenses,” as said term is defined in the Rate and Method of Apportionment.
The above services shall be limited to those provided within the boundaries of CFD No. 2022-1 or for the benefit of the properties within the boundaries of CFD No. 2022-1, as the boundary is expanded from time to time by anticipated annexations, and said services may be financed by proceeds of the special tax of CFD No. 2022-1 only to the extent that they are in addition to those provided in the territory of CFD No. 2022-1 before CFD No. 2022-1 was created.
283
City of Wildo
mar 17
Community Facilities District No. 2022‐1 (Services)
EXHIBIT D
CITY OF WILDOMAR
COMMUNITY FACILITIES DISTRICT NO. 2022‐1 (SERVICES)
PROPOSED BOUNDARIES
284
380
-160-01
7 380-210-003
380-210-008
380-210-004
380-160-018
380-210-016
STA
RB
UCK CIR
WA
SHINGTON AVE
SCOOTER
W
AY
PA
LOMAR
S
T
COMMUNITY FACILITIES DISTRICT NO. 2022-1
(SERVICES)
OF THE CITY OF WILDOMAR,
COUNTY OF RIVERSIDE, STATE OF CALIFORNIA
SHEET 1 OF 1 SHEET
CFD 2022-1
TAX ZONE 5
\_
§¨¦15
WILDOMAR
THIS BOUNDARY MAP CORRECTLY SHOWS THE BOUNDARIES
OF THE COMMUNITY FACILITIES DISTRICT. FOR DETAILS
CONCERNING THE LINES AND DIMENSIONS OF LOTS OR
PARCEL REFER TO THE COUNTY ASSESSOR'S MAPS FOR
FISCAL YEAR 2023-24.
0 500 1,000250 Feet
-
PROPOSED ANNEXATION MAP NO. 5
LEGEND
CFD BOUNDARY
PARCEL LINE
CITY BOUNDARY
XXX-XXX-XXX ASSESSOR PARCEL NUMBER
THIS MAP SHOWS THE BOUNDARIES OF AREAS TO BE ANNEXED
TO COMMUNITY FACILITIES DISTRICT NO. 2022-1 (SERVICES)
OF THE CITY OF WILDOMAR, COUNTY OF RIVERSIDE, STATE
O F C A L I F O R N I A .
THE BOUNDARIES OF WHICH COMMUNITY FACILITIES DISTRICT
ARE SHOWN AND DESCRIBED ON THE MAP THEREOF WHICH
WAS PREVIOUSLY RECORDED ON APRIL 19, 2022, IN BOOK 88
OF MAPS OF ASSESSMENT AND COMMUNITY FACILITY DISTRICTS
AT PAGE 77 AND AS INSTRUMENT NO. 2022-0183915
IN THE OFFICE OF THE COUNTY RECORDER OF THE COUNTY OF
RIV ER SIDE, ST A TE OF CALI FORNIA.
I HEREBY CERTIFY THAT THE WITHIN MAP OR AREAS TO BE ANNEXED TO COMMUNITY FACILITIES DISTRICT NO. 2022-1 (SERVICES)
OF THE CITY OF WILDOMAR, COUNTY OF RIVERSIDE, STATE OF
CALIFORNIA, WAS APPROVED BY THE CITY COUNCIL OF THE
CITY OF WILDOMAR AT A REGULAR MEETING THEREOF,
HELD ON ______ DAY OF ______, 20___,
BY RESOLUTION NO. _______________
___________________________________
CITY CLERK
C I T Y O F W I L D O M A R
RECORDED THIS ____ DAY OF _______________, 20____ AT
THE HOUR OF ____ O'CLOCK __M IN BOOK _____
PAGE _____ OF MAPS OF ASSESSMENT AND COMMUNITY
FACILITIES DISTRICTS IN THE OFFICE OF THE COUNTY
RECORDER, IN THE COUNTY OF RIVERSIDE, STATE OF
CALIFORNIA.
FEE: _____________ NO.: ______________________
PETER ALDANA, ASSESSOR, COUNTY CLERK, RECORDER
BY: _______________________________
D E P U T Y
FILED IN THE OFFICE OF THE CITY CLERK, CITY OF WILDOMAR, THIS ____ DAY OF ________, 20____.
______________________________
CITY CLERK
CITY OF WILDOMAR
5 TAX ZONE
380-210-005
5 285
EXHIBIT E
WAIVER AND CONSENT RESPECTING CONDUCT OF
MAILED BALLOT, LANDOWNER ELECTION
286
EXHIBIT F
NOTICE OF PUBLIC HEARING
287
NOTICE OF PUBLIC HEARING ON RESOLUTION OF INTENTION TO ANNEX
TERRITORY TO AN EXISTING COMMUNITY FACILITIES DISTRICT
(ANNEXATION NO. 5)
NOTICE IS HEREBY GIVEN that the City Council of the City of Wildomar on August 9, 2023 adopted its Resolution No. 2023-__, in which it declared its intention to annex territory to existing Community Facilities District No. 20 22-1 (Services) (the "CFD No. 2022- 1"), and to levy a special tax to pay for certain maintenance services, all pursuant to the provisions of the Mello- Roos Community Facilities Act of 1982, Chapter 2.5, Part 1, Division 2, Title 5 of the California Government Code. The resolution describes the territory to be annexed and describes the rate and method of apportionme nt of the proposed special tax.
No change in the tax levied in the existing CFD No. 2022-1 is proposed.
NOTICE IS HEREBY FURTHER GIVEN that the City Council has fixed 6:00 p.m., or as soon thereafter as practicable, Wednesday, September 13, 2023 in the City Council Chambers located at 23873 Clinton Keith Rd., Wildomar, California 92 595, as the time and place when and where the City Council will conduct a public hearing on the establishment of CFD No. 2022-1. At the hearing, the testimony of all interest persons for or against the annexation of the territory or the levying of the special taxes will be heard.
DATED: ____________, 20___ _________________________________________ City Clerk of the City of Wildomar
288
EXHIBIT G
SPECIAL ELECTION BALLOT
289
SPECIAL TAX ELECTION
CITY OF WILDOMAR
ANNE
XATION OF TERRITORY TO
COMMUNITY FACILITIES DISTRICT NO. 2022-1 (SERVICES)
ANNEXATION NO. 5
(September 13, 2023)
T
his ballot is for the use of the authorized representative of the following owner of land within Annexation No. 5 of the Community Facilities District No. 2022-1 (Services) (“CFD No. 2022-1”) of the City of Wildomar:
Name of Landowner Number of Acres Owned Total Votes
D.R. Horton Los Angeles Holding Company, Inc. 41.76 42
A
ccording to the provisions of the Mello -Roos Community Facilities Act of 1982, and resolutions of the City Council (the “Council”) of the City of Wildomar (the “City”), the above -named landowner is entitled to cast the number of votes shown above under the heading “Total Votes,” representing the total votes for the property owned by said landowner. The City has sent the enclosed ballot to you so that you may vote on whether or not to approve the special tax.
T
his special tax ballot is for the use of the property owner of the parcels identified below, which parcels are located within the territory proposed to be annexed to the CFD No. 20 22-1, City of Wildomar, County of Riverside, State of California.
Please advise the City Clerk, at (951) 677-7751 x 210 if the name set forth below is incorrect or if you are no longer one of the owners of these parcels. This special tax ballot may be used to express either support for or opposition to the proposed special tax. To be counted, this special tax ballot must be signed below by the owner or, if the owner is not an individual, by an authorized representative of the owner. The ballot must then be delivered to the City Clerk, either by mail or in person, as follows:
M
ail
Delivery: If by mail, place ballot in the return envelope provided, and mail no later than August 30, 2023 , two calendar weeks prior to the date set for the election. Mailing later than this deadline creates the risk that the special tax ballot may not be received in time to be counted.
Personal
Delivery: If in person, deliver to the City Clerk at any time up to 6:00 p.m. on September 13, 2023, at the Clerk’s office at 23873 Clinton Keith Road, Suite 201 Wildomar, CA 92595.
H
owever delivered, this ballot must be received by the Clerk prior to the close of the public meeting on September 13, 2023.
V
ery truly yours,
J
anet Morales
City Clerk
City of Wildomar
290
TO CAST THIS BALLOT, PLEASE RETURN THIS ENTIRE PAGE.
OFFICIAL SPECIAL TAX BALLOT
Name & Address of Property Owner: Assessor’s Parcel Number(s):
D.R. Horton Los Angeles Holding Company, Inc.
Attn: Jennifer O’Leary
2280 Wardlow Circle, Ste. 100
Corona, CA 92878
3 80-160-017, 380-160-018, 380-210-003
380-210-004, 380-210-005, 380-210-008
380-210-016
A
NNEXATION OF TERRITORY TO
COMMUNITY FACILITIES DISTRICT NO. 2022-1 (SERVICES)
ANNEXATION NO. 5
MARK AN “X” OR OTHER MARK WILL CAST ALL VOTES ASSIGNED TO THIS BALLOT S
PECIAL TAX BALLOT MEASURE MARK “YES” OR “NO”
WITH AN “X”:
Shall the City Council of the City of Wildomar be authorized to levy a special tax on an annual basis at the rates and apportioned as described in Exhibit C to the Resolution Declaring its Intention to Annex Territory to Community Facilities District No. 2022-1 (Services) adopted by the City Council on August 9, 2023 (the “Resolution”), which is incorporated herein by this reference, within the territory identified on the map entitled “Annexation Map No. 5 of Community Facilities District No. 20 22-1 (Services) City of Wildomar” to finance certain services as set forth in Section 4 to the Resolution (including incidental expenses) and shall an appropriation limit be established for Community Facilities District No. 2022-1 (Services) in the amount of special taxes collected?
YES
NO
C
ertification for Special Election Ballot
The undersigned is an authorized representative of the above -named landowner and is the person legally authorized and entitled to cast this ballot on behalf of the above-named landowner.
I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct and that this declaration is executed on _________________________________, 20___________.
D
.R. Horton Los Angeles Holding Company, Inc.
Jennifer O’Leary
VP of Forward Planning
Signature
Print Name
Title
291
PALOMAR
ST
WASHINGTON
AVEVIA ALISOL
GRIZZLY
RIDGE
DR
SYCAMORE CREEKAVE
CLINTON
KEITH
RD
JEFFERSON
AVE
GRAND AVE
CLUB
VIEW
DR
S E TTLERS RIDGEMOUNTAIN SHADOW RD
§¨¦
15 ^_
JEFFERSON
AVE
WASHINGTON
AVE
BAXTER RD
VIAMORENO
GRAND
AVE
UNION ST
SKY BREEZE CT
PALOMAR
ST
SILVERWOOD ST
GRUWELL ST
LINCOLN AVE
VIABAYA
BEARCREEKDR
JACKSON
AVE
LA ESTRELLA RD
IODINE SPRINGS RD
KENTMAN CT
§¨¦15
CFD NO. 2022-1 (SERVICES)
ANNEXATION NO. 5
PROJECT MAP
292
PL 2929PL 3015
PL 2537
PL 1898
PL 2929
PL 3015
PL 2929
PL 1898
PL 2929PL 3015
PL 2929
PL 2537
PL 1898
PL 3015
PL 2537
PL 2929PL 3015PL 1898
PL 2537PL 2929
PL 1898
PL 3015
PL 2537
PL 2929
PL 3015
PL 1898
PL 3015
PL 1898
PL 2929
PL 2537
PL 3015
PL 2537PL 2929PL 3015
PL 1898PL 3015
PL 2537
PL 2929
PL 1898
PL 3015
PL 2537
PL 2929PL 1898
PL 3015PL 2929PL 3015
PL 3015PL 2537PL 2929 PL 3015PL 2929PL 1898
PL 2929PL 3015PL 1898PL 2537PL 2929PL 1898PL 3015PL 2537 PL 2929
PL 1898
PL 1898
PL 3015
PL 2929
PL 1898
PL 3015
PL 2537
PL 2929
PL 3015
PL 1898
PL 1898 PL 1898
PL 2537PL 3015
PL 2929PL 1898
PL 2537
PL 2929PL 3015
PL 3015PL 2537PL 3015PL 1898
PL 2537PL 3015PL 2929
PL 2537
PL 2239
PL 2239
PL 2239
PL 2239
PL 2239 PL 2239
PL 2239
PL 2239
PL 2239
PL 2239
PL 2239
PL 1898
PL 2239
PL 1898
PL 2537 PL 2537
PL 2537
PL 2929
PL 3015
PL 3015
PL 2537
PL 1898
PL 2537
PL 2929
PL 3015
PL 2929
PL 2239
PL 1898
PL 2537
4:1
4:14:1
4:14:1
4:1
4:1
4:1
4:1
4:1
4:1
2:1
2:1
2:1
2:14:1
4:1
4:1
4:1
4:1
2:1
2:1
4:12:1 2:1
4:12:1
4:1
4:1
4:1
4:1
4:1
4:1
4:1
4:14:1
P.M. 43 / 99PARCEL 1ZONE / R-RLAND USE:VERY LOWDENSITYRESIDENTIAL R.S. 8 / 99PARCEL 10ZONE / R-RLAND USE:VERY LOWDENSITYRESIDENTIAL POR. BLK. M COM.B. 4 / 174 ZONE /R-R LAND USE:VERY LOWDENSITYRESIDENTIALHORSE RANCHTENT. TR. 31895 ZONE / W-1LAND USE:VERY LOWDENSITYRESIDENTIALHORSE RANCH CITY OFMURRIETAM.B. 309 / 69-72ZONE / SF-1RESIDENTAIL
P.M. 197 / 1-3 PARCEL 2ZONE / MSC LANDUSE: MEDIUMDENSITY CHURCH PARCEL 1 ZONE /MSC LAND USE:COMMERCIALRETAIL VACANT
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DESERT DANDELION COURTDESERT LILY COURT
COPA DE ORO COURTPALOMAR
STREET
WASHINGTON AVE
EVENING PRIMROSE COURT
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WESTERN GOLDENROD STREET
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MAINTENANCE RESPONSIBILITYTRAIL MAINTAINED BY THE CFDNORTH (PALOMAR AND STARBUCK - IN TRACT)18,897 S.F.SOUTH (ADJACENT OPEN SPACE)39,706 S.F.CFD MAINTAINED INTERIOR STREET PERIMETER13,693 L.F.CFD MAINTAINED IN-TRACT SIDEWALK 76,918 S.F.(INCL. WASHINGTON AND PALOMAR) Jul 05, 2023 Tr.31896_MAINT CFD ONLY T:\DR HORTON\TR. 31896 MURRIETA CREEK ESTATES WILDOMAR\MAINTENANCE MAPS\TR.31896_MAINT CFD ONLY.DWG July 5, 2023
l a n d s c a p e a r c h i t e c t u r e
CARLSBAD, CA 92009T E L 9 4 9 2 7 6 6 5 0 0 F A X 9 4 9 2 7 6 6 5 0 5 l a n d p l a n n i n g
w w w . s j a i n c . n e t7859 SITIO COCO
D.G. TRAIL CFD MAINTAINED
D.G. TRAIL CFD MAINTAINED
D.G. TRAIL(CFD)
STATE OF CALIFORNIA EXP. 5/31/24
LICENSED LANDSCAPE ARCHITECT 3332
SIGNATUREJOHN T. NORTON
DATE 7/05/2023
LEGENDMAINTENANCERIGHT OF WAYPROPERTY LINEST. LIGHTS - PALOMAR/WASH.6CFD ST. LIGHTS - IN TRACT33CFD CMU WALL655 L.F.CFD TRAIL CABLE FENCE2,432 L.F.CFD CMU PILASTER (SPLIT FACE)*9CFD POWER PED. STREETLIGHT 2 CFD CATCH BASINS6CFD STORM DRAIN3,483 L.F.CFD // // //
* PILASTER NOTES:A.END OF BLOCK WALLS WILL TERMINATE WITH 16x16 SPLIT FACE PILASTERS.
SCALE: 1"= 80'
Avalino - Tr. 31896CFD Maintenance Exhibit1 of 2
CABLE RAIL PER CALTRANSSTD. DWG. NO. B11-47 CFDMAINTAINED M
STREET LIGHT PED. (CFD)
STREET LIGHT PED( CFD)
SYMBOL
WALL NOTES:A.ANTI-GRAFFITI COATING SHALL BE APPLIED TO ALL WALLS.
RCFCD TO MAINTAIN STORMDRAIN OUTLET
RCFCD TO MAINTAIN STORMDRAIN OUTLETS
RCFCD TO MAINTAIN STORMDRAIN OUTLET
PAVEMENT (CFD MAINTAINED)LOCATIONDECOMPOSEDGRANITECONCRETESIDEWALKLINEAR FOOTAGE FORSTREET SWEEPINGPALOMAR ST. &WASHINGTON AVE.6,462 S.F.8,086 S.F.852 L.F. INTERIOR STREETS12,435 S.F.68,832 S.F.12,841 L.F. SOUTH (ADJACENT OPENSPACE)39,706 S.F.TOTAL58,603 S.F.76,918 S.F.13693 L.F.
LOT 118RCFCD
LANDSCAPED STORMDRAIN MAINTAINED BYHOA - EASEMENT TO CITY D.G. TRAIL CFD MAINTAINEDVINE COLLARS HOAMAINTAINED
LOT 119OPENSPACE(CFD)
293
CITY OF WILDOMAR
CC - REGULAR MEETING
CONSENT CALENDAR
Agenda Staff Report # 1.13
Meeting Date: August
9, 2023
SUBJECT:
Annexation No. 6, Phase 1, into Community Facilities District No. 2022-1 (Services) for Tres Lagos Apartments (LLA 2022- 004)
SUBMITTED BY:
Emily Stadnik
PREPARED BY:
Ninette Eva
ACTION:
Adopt a Resolution entitled:
RESOLUTION NO. 2023 - ___
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WILDOMAR, CALIFORNIA,
DECLARING ITS INTENTION TO ANNEX TERRITORY TO COMMUNITY FACILITIES DISTRICT NO. 2022-1 (SERVICES), OF THE CITY OF WILDOMAR, ADOPTING A MAP OF THE AREA PROPOSED TO BE ANNEXED (ANNEXATION NO. 6) AND AUTHORIZING THE
LEVY OF SPECIAL TAXES THEREIN
BACKGROUND:
On June 8, 2022 the City Council adopted Resolution No. 2022-30 establishing Community Facilities District No. 2022-1 (Services) of the City of Wildomar (the "CFD No. 2022-1" or "District") and authorizing the levying of special taxes on parcels of taxable property for the purpose of providing certain services which are necessary to meet increased demands placed upon the City.
The owner, Wildomar Tres Lagos Partners LP, of phase 1 of 3 for LLA 2022-004 containing
4.06 gross acres within the City, has requested that the City annex this territory into CFD No. 2022-1 (Services) to cover the costs associated with the maintenance of public improvements.
The improvements proposed to be maintained include items such as lighting, street maintenance, drainage, parks, and graffiti abatement.
The landowner has advised the City that it desires the area described in Exhibit A of the Resolution of Intention to be annexed into CFD No. 2022-1 and that a rate and method of apportionment of special tax to be levied therein be established. 294
The area proposed within Annexation No. 6, will encompass 4.06 acres to include 89 units, with a FY 2023-24 maximum annual tax of $473 per unit, per year. The property proposed to be annexed into CFD No. 2022-1 will be included in Tax Zone 6. This tax rate includes a Maximum Special Tax A of $153 per residential unit per year for maintenance services of public facilities, and Maximum Special Tax B of $320.25 per residential unit per year for safety.
Maximum Special Tax A will increase by the greater of Consumer Price Index (CPI) or 2% and Special Tax B will increase by the greater of CPI or 5%, both not to exceed 6%. Wildomar Tres Lagos Partners LP, has agreed to the annexation into the CFD and submitted a "Consent and Waiver" form on file in the City Clerk's Office, to initiate and conduct proceedings pursuant to the Mello-Roos Act of 1982, requesting the annexation of property to CFD No. 2022-1 (Services) and consenting to the shortening of election time requirements, waiving analysis and arguments, and waiving all notice requirements relating to conduct the election.
The next step to annex the property to CFD No. 2022-1 is to publish a notice of public hearing of the proposed annexation as required by the Mello-Roos Act. A public hearing on the matter will take place on September 13, 2023 and at that time the Council will formally consider approval of the property into Annexation No. 6.
FISCAL IMPACT:
The projected levy for Phase 1 of Tax Zone 6 in FY 2023-24 is $13,606 for the first year of Special Tax A maintenance services. Special Tax B Tax Zone 6 will generate $28,502 once all 89 units are developed.
ATTACHMENTS:
Attachment 1 - ROI Annex 6.docx
Attachment 1 - Ex. A - G.pdf
Attachment 2 - Project Map Annex 6.pdf
Attachment 3 - Maintenance Exhibit - Phase 1.pdf
295
RESOLUTION NO. 2023 -
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF WILDOMAR, CALIFORNIA, DECLARING ITS
INTENTION TO ANNEX TERRITORY INTO
COMMUNITY FACILITIES DISTRICT NO. 2022-1
(SERVICES) OF THE CITY OF WILDOMAR, ADOPTING
A MAP OF THE AREA PROPOSED TO BE ANNEXED
(ANNEXATION NO. 6) AND AUTHORIZING THE LEVY
OF SPECIAL TAXES THEREIN
WHEREAS, on June 8, 2022, the City Council (the “City Council”) of the City of Wildomar (the “City”) approved Resolution No. 2022-30 establishing Community Facilities District No. 2022-1 (Services) ("CFD No. 2022-1"), of the City of Wildomar, County of Riverside, State of California, for the purpose of levying special taxes on parcels of taxable property therein for the purpose of providing certain services which are necessary to meet increased demands placed upon the City; and WHEREAS, the City Council has received a written instrument from the landowner to initiate and conduct proceedings pursuant to the Mello-Roos Community Facilities District Act of 1982 (the “Act”), to annex territory into CFD No. 2022-1 and consenting to the shortening of election time requirements, waiving analysis, and arguments, and waiving all notice requirements relating to the conduct of the election; and WHEREAS, the City Council has been advised that the landowner has requested that the area described and shown in Exhibit A be annexed into the boundaries of CFD No. 2022-1, that a rate and method of apportionment of special tax to be levied therein be established.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
WILDOMAR, ACTING EX OFFICIO AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 2022-1 (SERVICES) OF THE CITY OF WILDOMAR, DETERMINE AND ORDER AS FOLLOWS:
Section 1. Intent to Annex. The City Council hereby declares that it proposes and intends to conduct proceedings pursuant to Article 3.5 of the Act for the annexation to CFD No. 2022-1 of the territory described in Exhibit A attached hereto. The City Council determines that the public convenience and necessity require that such territory be annexed into CFD No. 2022-1.
Section 2. Name of the Community Facilities District. The name of the existing community facilities district is known as “Community Facilities District No. 2022-1 (Services).”
296
Section 3. Description of Territory Proposed to be Annexed, Annexation Map. The territory proposed to be annexed is included within the boundaries within which property may annex to CFD No. 2022-1 and is more particularly described and shown on that certain map entitled “Proposed Boundary Map Community Facilities District No. 2022-1 of the City of Wildomar (Services) of the City of Wildomar, County of Riverside, State of California” as recorded on April 19, 2022 in Book 88 of Maps of Assessment and Community Facilities District, Pages 77, and as Instrument No. 2022- 0183915 in the official records of the County of Riverside. The territory proposed to be annexed to CFD No. 2022-1 is described in Exhibit A attached hereto and by this reference made a part hereof. Such territory is also shown and described on the map thereof entitled "Proposed Annexation Map No. 6, Community Facilities District No. 2022-1 (Services), City of Wildomar, County of Riverside, State of California," which is on file with the City Clerk (the "Annexation Map") and attached hereto as Exhibit D.
Section 4. Description of Authorized Services. The services proposed to be financed by CFD No. 2022-1 (the “Services”) are described in Exhibit B attached hereto. The cost of providing the Services includes “administrative expenses,” which include costs associated with the creation of CFD No. 2022-1, determination of the amount of special taxes, collection or payment of special taxes, or costs otherwise incurred in order to carry out the authorized purposes of CFD No. 2022-1. The Services authorized to be financed by CFD No. 2022-1 are in addition to those currently provided in the territory of CFD No. 2022-1 and do not supplant services already available within that territory.
Section 5. Levy of Special Taxes. Except where funds are otherwise available, a special tax sufficient to pay the costs of the Services (including administrative expenses), secured by recordation of a continuing lien against all nonexempt real property in CFD No. 2022-1, will be levied annually within CFD No. 2022-1. The rate and method of apportionment, and manner of collection of the special taxare specified in Exhibit C.
Section 6. Adoption of Annexation Map. Pursuant to Section 3110.5 of the Streets and Highways Code, the City Council adopts the Annexation Map attached hereto as Exhibit D as the map of the area proposed to be annexed to CFD No. 2022-1. Pursuant to Section 3111 of said Code, the City Clerk shall file the original of the Annexation map in her office and shall file a copy of the Annexation Map with the County Recorder of the County of Riverside no later than 15 days prior to the date of the hearing specified in Section 7 hereof.
Section 7. Public Hearing. The City Council hereby fixes 6:00 p.m., or as soon thereafter as practicable, on Wednesday, September 13, 2023, in the City Council Chambers located at 23873 Clinton Keith Rd., Wildomar, California 92595, as the time and place when and where the City Council will conduct a public hearing on the proposed annexation of the said territory to CFD No. 2022-1.
Section 8. Notice of Public Hearing. The City Clerk is hereby directed to publish, or cause to be published, a notice of said public hearing, in substantially the form attached hereto as Exhibit F, one time in a newspaper of general circulation published in the area of CFD No. 2022-1. The publication of said notice shall be completed at least seven days prior to the date herein fixed for said hearing. Said notice shall 297
contain the information prescribed by Section 53322 of the Act.
Section 9. Mailing Ballots. In anticipation of its action on Wednesday, September 13, 2023 to call the election on the annexation for the same date, pursuant to waiver of election time limits from the landowners, the City Council hereby authorizes the City Clerk to mail to each landowner in the territory proposed to be annexed to the CFD No. 2022-1 a ballot in substantially the form set forth in Exhibit G hereto. A copy of the waiver and consent form signed by the property owner is attached hereto as Exhibit E and incorporated herein by this reference.
PASSED, APPROVED, AND ADOPTED this 9th day of August 2023.
Joseph Morabito
Mayor
APPROVED AS TO FORM: ATTEST:
Thomas D. Jex Janet Morales
City Attorney City Clerk
298
EXHIBIT A
DESCRIPTION OF PROPOSED TERRITORY TO BE ANNEXED
299
DESCRIPTION OF PROPOSED TERRITORY TO BE ANNEXED
The City of Wildomar Community Facilities District No. 2022-1 (Services) (the “CFD No. 2022-1”) Annexation No. 6, is currently comprised of one (1) parcel located within the city boundaries. The property is identified by the following Riverside County Assessor's Parcel Number (APN).
APN Owner Name
380-100-021 Wildomar Tres Lagos Partners LP
300
City of Wildom
ar 17
Community Facilities District No. 2022‐1 (Services)
EXHIBIT B
DESCRIPTION OF SERVICES
301
CITY OF WILDOMAR
COMMUNITY FACILITIES DISTRICT NO. 2022-1 (SERVICES)
DESCRIPTION OF AUTHORIZED SERVICES
The services which may be financed with proceeds of the special tax of CFD No. 2022-1, as provided by Section 53313 of the Act, will include all costs attributable to maintaining, servicing, cleaning, repairing and/or replacing landscaped areas (may include reserves for replacement) in public street right-of-ways, public landscaping, public open spaces and other similar landscaped areas officially dedicated for public use. In addition, the services which may include some or all costs attributable to police protection, and fire services. These services including the following:
(a) maintenance and lighting of parks, parkways, streets, roads and open space, which maintenance and lighting services may include, without limitation, furnishing of electrical power to street lights; repair and replacement of damaged or inoperative light bulbs, fixtures and standards; maintenance (including irrigation and replacement) of landscaping vegetation situated on or adjacent to parks, parkways, streets, roads and open space; maintenance and repair of irrigation facilities; maintenance of public signage; graffiti removal from and maintenance and repair of public structures situated on parks, parkways, streets, roads and open space; maintenance and repair of playground or recreation program equipment or facilities situated on any park; and
(b) maintenance and operation of water quality improvements which include storm drainage and flood protection facilities, including, without limitation, drainage inlets, catch basin inserts, infiltration basins, flood control channel s, fossil fuel filters, and similar facilities.
Maintenance services may include but is not limited to the repair, removal or replacement of all or part of any of the water quality improvements, fossil fuel filters within the public right-of-way including the removal of petroleum hydrocarbons and other pollutants from water runoff, or appurtenant facilities, clearing of inlets and outlets; erosion repairs; and cleanup to improvements, and other items necessary for the maintenance, servicing; or both of the water quality basin improvements within flood control channel improvements; and
(c) public street sweeping, on the segments of the arterials within the boundaries of CFD No. 2022-1; as well as local roads within residential subdivisions located within CFD No. 2022-1; and any portions adjacent to the properties within CFD No. 2022-1; and
(d) police protection services, including but not limited to criminal justice services, and fire protection and suppression services.
In addition to payment of the cost and expense of the forgoing services, proceeds of the special tax may be expended to pay “Administrative Expenses,” as said term is defined in the Rate and Method of Apportionment.
The above services shall be limited to those provided within the boundaries of CFD No. 2022-1 or for the benefit of the properties within the boundaries of CFD No. 2022-1, as the boundary is expanded from time to time by anticipated annexations, and said services may be financed by proceeds of the special tax of CFD No. 2022-1 only to the extent that they are in addition to those provided in the territory of CFD No. 2022-1 before CFD No. 2022-1 was created. 302
EXHIBIT C
RATE AND METHOD OF APPORTIONMENT
303
City of Wildomar 1
Community Facilities District No. 2022-1 (Services)
RATES AND METHOD OF APPORTIONMENT OF SPECIAL TAX FOR
COMMUNITY FACILITIES DISTRICT NO. 2022-1 (SERVICES)
OF THE CITY OF WILDOMAR
Special Taxes (defined below) shall be levied on and collected from each Assessor’s Parcel (defined below) in Community Facilities District No. 2022-1 (Services) of the City of Wildomar (the “ CFD No. 2022-1 ” or “CFD”; defined below), in each Fiscal Year, (defined below), commencing in the Fiscal Year beginning July 1, 2022, in an amount determined by the City Council of the City of Wildomar, acting ex officio as the legislative body of CFD No. 2022-1 , by applying the rates and method of apportionment set forth below.
All of the real pro perty in CFD No. 2022-1, unless exempted by law or by the provisions herein, shall be taxed to the extent and in the manner provided herein.
A. DEFINITIONS
“Accessory Dwelling Unit” means a residential unit of limited size including a smaller second unit that shares an Assessor’s Parcel as a Single Family Residential Property with a stand-alone Residential Unit.
“Acre” or “Acreage” means the land area of an Assessor’s Parcel as shown on any Assessor’s Parcel Map, or if the land area is not shown on the Assessor’s Parcel Map, the land area as shown on the applicable Final Map, or if the area is not shown on the applicable Final Map, the land area shall be calculated by the Administrator.
“Administrative Expenses” means the actual or reasonably estimated costs directly related to the formation, annexation, and administration of CFD No. 2022-1 including, but not limited to: the costs of computing the Special Taxes and preparing the annual Special Tax collection schedules (whether by the City or designee thereof or both); the costs to the City, CFD No. 2022-1, or any designee thereof associated with fulfilling the CFD No. 2022-1 disclosure requirements; the costs associated with responding to public inquiries regarding the Special Taxes; the costs of the City, CFD No. 2022-1 or any designee thereof related to an appeal of the Special Tax; and the City's annual administration fees and third party expenses.
Administrative Expenses shall also include amounts estimated or advanced by the City or CFD No. 2022 - 1 for any other administrative purposes of CFD No. 2022-1 , including attorney's fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes.
“Administrator” means the City Manager of the City of Wildomar, or his or her designee.
“Approved Property” means all Assessor’s Parcels of Taxable Property that are included in a Final Map that was recorded prior to the March 1 of preceding the Fiscal Year in which the Special Tax is being levied and for which no building permit for new construction has been issued on or prior to March 1 preceding the Fiscal Year in which the Special Tax is being levied.
“Assessor’s Parcel” means a lot or parcel of land that is identifiable by an Assessor’s Parcel Number by the County Assessor of the County of Riverside.
“Assessor’s Parcel Map” means an official map of the Assessor of the County designating parcels by Assessor’s Parcel Number.
“Assessor’s Parcel Number” means that identification number assigned to a parcel by the County Assessor of the County.
"Building Permit" means the first legal document issued by the City giving official permission for new 304
City of Wildomar 2
Community Facilities District No. 2022-1 (Services)
construction. For purposes of this definition, “Building Permit” may or may not include expired or cancelled building permits, or any subsequent building permit document(s) authorizing new construction on an Assessor’s Parcel that are issued or changed by the City after the first original issuance, as determined by the CFD Administrator
“Building Square Footage” or “BSF” means the floor area square footage reflected on the original construction building p ermit issued for construction of a building of Non -Residential Property and any Building Square Footage subsequently added to a building of such Taxable Property after issuance of a building permit for expansion or renovation of such building.
"Calendar Year" means the period commencing January 1 of any year and ending the following December
31. “CFD” or “CFD No. 2022- 1” means Community Facilities District No. 2022-1 (Services) of the City of Wildomar.
“City” means the City of Wildomar.
“Contingent Services” means services permitted under the Mello-Roos Community Facilities Act of 1982 including, without limitation, those services authorized to be funded by CFD No. 2022-1 as set forth in the documents adopted by the City Council at the time the CFD was formed to be provided by the City in the event the Administrator makes a determination pursuant to Section C( 3) that a Property Owners’ Association fails to adequately provide such services.
“County” means the County of Riverside.
“Developed Property” means all Assessor’s Parcels that: (i) are included in a Final Map that was recorded prior to the January 1
st preceding the Fiscal Year in which the Special Tax is being levied, and (ii) have an Assessor’s Parcel Number from the County shown on an Assessor’s Parcel Map for the individual lot included on the Final Map, and (iii) a Building Permit for new construction was issued on or before May 1 st preceding the Fiscal Year in which the Special Tax is being levied.
“Exempt Property” means all As sessors’ Parcels designated as being exempt from the Special Tax as provided for in Section G.
“Final Map” means a subdivision of property by recordation of a final map, parcel map, or lot line adjustment, pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) or recordation of a condominium plan pursuant to California Civil Code 6624 that creates individual lots for which building permits may be issued without further subdivision.
“Fiscal Year” means the period from and including July 1st of any year to and including the following June 30th.
“Land Use Category” or “LUC” means, any of the categories contained in Section B hereof to which an Assessor’s Parcel is assigned consistent with the land use approvals that have been received or proposed for the Assessor’s Parcel as of March 1 preceding the Fiscal Year in which the Special Tax is being levied.
“Maximum Special Tax” means the Maximum Special Tax A, Maximum Special Tax B, and/or Maximum Special Tax C (Contingent), as applicable.
305
City of Wildomar 3
Community Facilities District No. 2022-1 (Services)
“Maximum Special Tax A” means the Maximum Special Tax A, as determined in accordance with Section C, below, that can be levied in any Fiscal Year on any Assessor's Parcel within CFD No. 2022-1.
“Maximum Special Tax B” means the Maximum Special Tax B, as determined in accordance with Section C, below, that can be levied in any Fiscal Year on any Assessor's Parcel within CFD No. 2022-1.
“Maximum Special Tax C (Contingent) ” means for each Assessor’s Parcel and each Fiscal Year, the maximum Special Tax C (Contingent), as determined in accordance with Section C below that can be levied on such Assessor’s Parcel in such Fiscal Year.
“Multi-Family Residential Property” or “MFR” means any Assessor’s Parcel of residential property that consists of a building or buildings comprised of attached Residential Units available for rental, but not purchase, by the general public and under common management.
“Non-Residential Property” or “NR” means, all Assessor's Parcels of Taxable Property for which a building permit(s) was issued for a non -residential use. The Administrator shall make the determination if an Assessor’s Parcel is Non-Residential Property.
“Property Owner’s Association” or “POA” means the property owner’s association or homeowner’s association established to maintain certain services within a Tax Zone.
“Proportionately” means for Taxable Property that is: (i) Developed Property, that the ratio of the actual Special Tax levy to the Maximum Special Tax is the same for all Parcels of Developed Property, (ii) Approved Property, that the ratio of the actual Special Tax levy to the Maximum Special Tax is the same for all Parcels of Approved Property, and (iii) Undeveloped Property that the ratio of the actual Special Tax levy per acre to the Maximum Special Tax per acre is the same for all Parcels of Undeveloped Property.
“Residential Unit” or "RU" means a residential unit that is used or intended to be used as a domicile by one or more persons, as determined by the Administrator. An Accessory Dwelling Unit that shares an Assessor’s Parcel with a Single Family Residential Prope rty shall not be considered a Residential Unit for purposes of this RMA.
“Residential Property” means all Assessor’s Parcels of Taxable Property upon which completed Residential Units have been constructed or for which building permits have been or may be issued for purposes of constructing one or more Residential Units.
“RMA" means this Rate and Method of Apportionment of Special Taxes.
“Service(s)” means services permitted under the Mello-Roos Community Facilities Act of 1982 including, without limitat ion, those services authorized to be funded by CFD No. 2022-1 as set forth in the documents adopted by the City Council at the time the CFD was formed.
“Single Family Residential Property” or “SFR” means any residential property that consists of a buildin g comprised of attached or detached residential units available for purchase or rent by the general public.
“Special Tax(es)” means the Special Tax A and/or Special Tax B and/or Special Tax C (Contingent) to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property.
“Special Tax A” means the annual special tax to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property to fund the Special Tax A Requirement. 306
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"Special Tax A Requirement" means that amount to be collected in any Fiscal Year to pay for certain costs as required to meet the needs of CFD No. 2022-1 in the next Fiscal Year. The costs to be covered shall be the direct costs for maintenance services including but not limited to (i) maintenance and lighting of parks, parkways, streets, roads, and open space, (ii) maintenance and operation of water quality improvements, (iii) public street sweeping, (iv) fund an operating reserve for the costs of Services as determined by the Administrator, and (v) Administrative Expenses. Under no circumstances shall the Specia l Tax A Requirement include funds for bonds or other forms of indebtedness.
“Special Tax B” means the annual special tax to be levied in each Fiscal Year on each Assessor’s Parcel of Developed Property to fund the Special Tax B Requirement.
"Special Tax B Requirement" means that amount to be collected in any Fiscal Year to pay for certain costs as required to meet the needs of CFD No. 2022-1 in the next Fiscal Year. The costs to be covered shall be the direct costs for (i) police protection services, (ii) fire protection and suppression services, (iii) fund an operating reserve for the costs of Services as determined by the Administrator, and (iv) Administrative Expenses. Under no circumstances shall the Special Tax B Requirement include funds for bonds or other forms of indebtedness.
“Special Tax C (Contingent)” means the annual special tax to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property to fund the Special Tax C (Contingent) Requirement, if required.
“Special Tax C (Contingent) Requirement” means that amount requi red in any Fiscal Year, if the P OA is unable to maintain the Contingent Service(s) to: (i) pay the costs of Contingent Services incurred or otherwise payable in the Calendar Year commencing in such Fiscal Year; (ii) fund an operating reserve for the costs of Contingent Services as determined by the Administrator; less a credit for funds available to reduce the annual Special Tax C (Contingent) levy as determined by the Administrator . Under no circumstances shall the Special Tax C (Contingent) Requirement include funds for bonds or other forms of indebtedness..
"Taxable Property" means all Assessor’s Parcels within CFD No. 2022-1, which are not Exempt Property.
“Taxable Unit” means a Residential Unit, Building Square Footage, or an Acre.
"Tax Zone" means a mutually exclusive geographic area, within which particular Special Tax rates may be levied pursuant to this Rate and Method of Apportionment of Special Tax.
"Tax Zone Original" means the geographic area the specific area identified on the CFD Boundary Map as Tax Zone Original.
"Tract(s)" means an area of land within a subdivision identified by a particular tract number on a Final Map approved for the subdivision.
“Undeveloped Property” means, for each Fiscal Year, all Taxable Property not classified as Developed Property or Approved Property.
B. ASSIGNMENT TO LAND USE CATEGORIES
For each Fiscal Year, all Assessor’s Parcels of Taxable Property within CFD No. 2022-1 shall be classified as Developed Property, Approved Property, or Undeveloped Property, and shall be subject to the levy of Special Taxes as determined pursuant to Sections C and D below. Assessor’s Parcels of Developed Property 307
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and Approved Property shall be classified as either Residential Property or Non -Residential Property.
Residential Property shall be further classified as Single Family Residential Property or Multi -Family Residential Property and the number of Residential Units shall be determined by the Administrator.
C. MAXIMUM SPECIAL TAX RATES
For purposes of determining the applicable Maximum Special Tax for Assessor’s Parcels of Developed Property and Approved Property which are classified as Residential Property, all such Assessor’s Parcels shall be assigned the number of Residential Unit(s) constructed or to be constructed thereon as specified in or shown on the building permit(s) issued or Final Map as determined by the Administrator. Once a single family attached or multi-family building or buildings have been built on an Assessor's Parcel, the Administrator shall determine the actual number of Residential Units contained within the building or buildings, and the Special Tax A and Special Tax C (Contingent) levied against the Assessor’s Parcel in the next Fiscal Year shall be calculated by multiplying the actual number of Residential Units by the Maximum Special Tax per Residential Unit for the Tax Zone below or as included in Appendix A as each annexation occurs.
For purposes of determining the applicable Maximum Special Tax for Assessor’s Parcels of Developed Property and Approved Property which are classified as Non -Residential Property, all such Assessor’s Parcels shall be assigned the number of Building Square Footage or Acres as shown on the Final Map as determined by the Administrator. Once the Administrator determines the actual number of Building Square Footage or Acres for the Assessor’s Parcels, the Special Tax A, Special Tax B, and Special Tax C (Contingent) levied against the Assessor’s Parcel in the next Fiscal Year shall be calculated by multiplying the number of Building Square Footage or Acres by the Maximum Special Tax per Taxable Unit identified for the applicable Tax Zone below or as included in Appendix A as each annexation occurs.
1. Special Tax A
a. Developed Property
(i) Maximum Special Tax A
The Maximum Special Tax A for each Assessor’s Parcel of Developed Property shall be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2022-1, Appendix A to this RMA shall be updated to reflect the Maximum Special Tax A for Developed Property for the Tract or Tracts annexed and the Special Tax A shall be levied up to the Maximum Special Tax A for Developed Property for such Tract or Tracts as specified in such updated Appendix A for the annexed property which shall reflect the Maximum Special Tax for the Tract or Tracts annexed. The Maximum Special Tax A for Fiscal Year 2022-2023 for a Residential Unit of Developed Property within the Tax Zone Original are identified in Table 1 below:
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TABLE 1
MAXIMUM SPECIAL TAX A RATES
DEVELOPED PROPERTY
FISCAL YEAR 2022-2023
Tax
Zone Tract Land Use Category
Taxable
Unit
Maximum
Special Tax A
Original TR 36672
Single Family Residential Property RU $408
Multi-Family Residential Property RU $408
Non-Residential Property Acre $5,267
(ii) Increase in the Maximum Special Tax A
On each July 1, commencing on July 1, 2023 with respect to Tax Zone Original, the Maximum Special Tax A for Developed Property shall increase by i) the percentage increase in the Consumer Price Index for all Urban Consumers for the Riverside -San Bernardino -Ontario California Standard Metropolitan Statistical Area since the beginning of the preceding Fiscal Year, not to exceed 6%, or ii) by two percent (2.0%), whichever is greater.
(iii) Multiple Land Use Categories
In some instances an Assessor's Parcel of Developed Property may contain more than one Land Use Category. The Maximum Special Tax A that can be levied on an Assessor's Parcel shall be the sum of the Maximum Special Tax A that can be levied for each Land Use Category located on that Assessor's Parcel. For an Assessor's Parcel that contains more than one land use, the Acreage of such Assessor's Parcel shall be a llocated to each type of property based on the amount of Acreage designated for each land use as determined by reference to the site plan approved for such Assessor's Parcel. The Administrator's allocation to each type of property shall be final.
b. Approved Property
The Maximum Special Tax A for each Assessor’s Parcel of Approved Property in Table 2 is specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2022 -1, the Appendix A to this rate and method shall be updated to reflect the Maximum Special Tax A for Approved Property for the Tract or Tracts annexed and the Special Tax A shall be levied up to the Maximum Special Tax A for Approved Property for such Tract or Tracts as specified in such updated Appendix A. The Maximum Special Tax A for Fiscal Year 2022-2023 per Residential Unit for Approved Property within Tax Zone Original is identified in Table 2 below:
309
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TABLE 2
MAXIMUM SPECIAL TAX A RATES
APPROVED PROPERTY
FISCAL YEAR 2022-2023
Tax
Zone Tract Land Use Category
Taxable
Unit
Maximum
Special Tax A
Original TR 36672
Single Family Residential Property RU $408
Multi-Family Residential Property RU $408
Non-Residential Property Acre $5,267
On each July 1, commencing on July 1, 2023 with respect to Tax Zone Original, the Maximum Special Tax A for Approved Property shall increase by i) the percentage increase in the Consumer Price Index for all Urban Consumers for the Riverside-San Bernardino-Ontario California Standard Metropolitan Statistical Area since the beginning of the preceding Fiscal Year, not to exceed 6%, or ii) by two percent (2.0%), whichever is greater.
c. Undeveloped Property
The Maximum Special Tax A for each Assessor’s Parcel of Undeveloped Property shall be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2022-1, Appendix A to this rate and method adopted shall be updated to reflect the Maximum Special Tax A for Undeveloped Property for the Tract or Tracts annexed and the Special Tax A shall be levied up to the Maximum Special Tax A for Undeveloped Property for such Tract or Tracts as specified in such updated Appendix A. The Maximum Special Tax A for Fiscal Year 2022-2023 per acre of Undeveloped Property within Tax Zone Original is identified in Table 3 below:
TABLE 3
MAXIMUM SPECIAL TAX A RATES
UNDEVELOPED PROPERTY
FISCAL YEAR 2022-2023
Tax Zone Tracts Taxable Unit Maximum Special Tax A
Original TR 36672 Acre $5,267
On each July 1, commencing on July 1, 2023 with respect to Tax Zone Original, the Maximum Special Tax A for Undeveloped Property shall increase by i) the percentage increase in the Consumer Price Index for all Urban Consumers for the Riverside- San Bernardino -Ontario California Standard Metropolitan Statistical Area since the beginning of the preceding Fiscal Year, not to exceed 6%, or ii) by two percent (2.0%), whichever is greater.
2. Special Tax B
The Special Tax B is an annual Special Tax that shall be levied on Developed Property to fund the Special Tax B Requirement.
a. Developed Property
(i) Maximum Special Tax B
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The Maximum Special Tax B for Fiscal Year 2022-2023 for each Land Use Category within Tax Zone Original is shown in Table 4. When additional property is annexed into CFD No. 2022-1, Appendix A to this rate and method shall be updated to reflect the Maximum Special Tax B for the Tract or Tracts annexed and the Special Tax B shall be levied up to the Maximum Special Tax B for Developed Property for such Tract or Tracts as specified in such updated Appendix A.
TABLE 4
MAXIMUM SPECIAL TAX B RATES
DEVELOPED PROPERTY
FISCAL YEAR 2022-2023
Land Use Category Unit Maximum Special Tax B
Single Family Residential Property RU $430
Multi-Family Residential Property RU $305
On each July 1, commencing on July 1, 2023 with respect to Tax Zone Original, the Maximum Special Tax B for Developed Property shall increase by i) the percentage increase in the Consumer Price Index for all Urban Consumers for the Riverside -San Bernardino -Ontario California Standard Metropolitan Statistical Area since the beginning of the preceding Fiscal Year, not to exceed 6%, or ii) by five percent (5.0%), whichever is greater.
The Special Tax B shall not be levied on Approved or Undeveloped Property.
3. Special Tax C (Contingent)
The City Council shall levy Special Tax C (Contingent) only in the event the POA defaults in its obligation to maintain the Contingent Services, which default shall be deemed to have occurred, as determined by the Administrator, in each of the following circumstances:
(a) The POA files for bankruptcy;
(b) The POA is dissolved;
(c) The POA ceases to levy annual assessments for the Contingent Services; or (d) The POA fails to provide the Contingent Services at the same level as the City provides similar services and maintains similar improvements throughout the City and within ninety (90) days after written notice from the City, or such longer period permitted by the City Manager, fails to remedy the deficiency to the reasonable satisfaction of the City Council.
a. Developed Property
(i) Maximum Special Tax C (Contingent)
The Maximum Special Tax C (Contingent) for each Assessor’s Parcel of Taxable Property shall be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2022- 1, Appendix A to this rate and method shall be updated to reflect Maximum Special Tax C (Contingent) for the Tract or Tracts annexed and the Special Tax C (Contingent) shall be levied up to the Maximum Special Tax C (Contingent) for Developed Property for such Tract or Tracts as specified in such updated Appendix A. The Maximum Special Tax C (Contingent) for Fiscal Year 2022- 2023 within Tax Zone Original is identified in Table 5 below:
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TABLE 5
MAXIMUM SPECIAL TAX C (CONTINGENT) RATES
DEVELOPED PROPERTY
FISCAL YEAR 2022-2023
Tax
Zone Tract Land Use Category
Taxable
Unit
Maximum
Special Tax C
(Contingent)
Original TR 36672
Single Family Residential Property RU $261
Multi-Family Residential Property RU $261
Non-Residential Property Acre $3,372
(ii) Increase in the Maximum Special Tax C (Contingent)
On each July 1, commencing on July 1, 2023 with respect to Tax Zone Original, the Maximum Special Tax C (Contingent) for Developed Property shall increase by i) the percentage increase in the Consumer Price Index for all Urban Consumers for the Riverside-San Bernardino -Ontario California Standard Metropolitan Statistical Area since the beginning of the preceding Fiscal Year, not to exceed 6%, or ii) by two percent (2.0%), whichever is greater.
(iii) Multiple Land Use Categories
In some instances, an Assessor's Parcel of Developed Property may contain more than one Land Use Category. The Maximum Special Tax C (Contingent) that can be levied on an Assessor's Parcel shall be the sum of the Maximum Special Tax C (Contingent) that can be levied for each Land Use Category located on that Assessor's Parcel. For an Assessor's Parcel that contains more than one land use, the Acreage of such Assessor's Parcel shall be allocated to each type of property based on the amount of Acreage designated for each land use as determined by reference to the site plan approved for such Assessor's Parcel. The Administrator's allocation to each type of property shall be final.
b. Approved Property
The Maximum Special Tax C (Contingent) for each Assessor’s Parcel of Approved Property shall be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2022- 1, Appendix A to this rate and method shall be updated to reflect the Maximum Special Tax C (Contingent) for the Tract or Tracts annexed and the Special Tax C (Contingent) shall be levied up to the Maximum Special Tax C (Contingent) for Approved Property for such Tract or Tracts as specified in such updated Appendix A. The Maximum Special Tax C (Contingent) for Fiscal Year 2022- 2023 within Tax Zone Original is identified in Table 6 below:
312
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TABLE 6
MAXIMUM SPECIAL TAX C (CONTINGENT) RATES
APPROVED PROPERTY
FISCAL YEAR 2022-2023
Tax
Zone Tract Land Use Category
Taxable
Unit
Maximum
Special Tax C
(Contingent)
Original TR 36672
Single Family Residential Property RU $261
Multi-Family Residential Property RU $261
Non-Residential Property Acre $3,372
On each July 1, commencing on July 1, 2023 with respect to Tax Zone Original, the Maximum Special Tax C (Contingent) for Approved Property shall increase by i) the percentage increase in the Consumer Price Index for all Urban Consumers for the Riverside-San Bernardino -Ontario California Standard Metropolitan Statistical Area since the b eginning of the preceding Fiscal Year, not to exceed 6%, or ii) by two percent (2.0%), whichever is greater.
c. Undeveloped Property
The Maximum Special Tax C (Contingent) for each Assessor’s Parcel of Undeveloped Property shall be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2022-1, Appendix A to this rate and method shall be updated to reflect the Maximum Special Tax C (Contingent) for the Tract or Tracts annexed and the Special Tax C (Contingent) shall be levied up to the Maximum Special Tax C (Contingent) for Undeveloped Property for such Tract or Tracts as specified in such updated Appendix A. The Maximum Special Tax C (Contingent) for Fiscal Year 2022-2023 within Tax Zone Original is identified in Table 7 below:
TABLE 7
MAXIMUM SPECIAL TAX C (CONTINGENT) RATES
UNDEVELOPED PROPERTY
FISCAL YEAR 2022-2023
Tax Zone Tract Taxable Unit
Maximum Special
Tax C (Contingent)
Original TR 36672 Acre $3,372
On each July 1, commencing on July 1, 2023 with respect to Tax Zone Original, the Maximum Special Tax C (Contingent) for Undeveloped Property shall increase by i) the percentage increase in the Consumer Price Index for all Urban Consumers for the Riverside-San Bernardino -Ontario California Standard Metropolitan Statistical Area since the beginning of the preceding Fiscal Year, not to exceed 6%, or ii) by two percent (2.0%), whichever is greater.
D. METHOD OF APPORTIONMENT OF ANNUAL SPECIAL TAX
1. Special Tax A
Commencing with Fiscal Year 2022-2023 and for each following Fiscal Year in which Special Tax A is authorized to be levied, the Council shall determine the Special Tax A Requirement and shall levy 313
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the Special Tax A on all Assessor’s Parcels of Taxable Property until the aggregate amount of Special Tax A equals the Special Tax A Requirement. The Special Tax A shall be levied for each Fiscal Year within each Tax Zone as follows:
First: The Special Tax A shall be levied Proportionately on all Assessor’s Parcels of Developed Property up to 100% of the applicable Maximum Special Tax A to satisfy the Special Tax A Requirement;
Second: If additional moneys are needed to satisfy the Special Tax A Requirement after the first step has been completed, the Special Tax A shall be levied Proportionately on each Parcel of Approved Property at up to 100% of the Maximum Special Tax A for Approved Property;
Third: If additional monies are needed to satisfy the Special Tax A Requirement after the first two steps has been completed, the Special Tax A shall be levied Proportionately on all Assessor’s Parcels of Undeveloped Property up to 100% of the Maximum Special Tax A for Undeveloped Property.
2. Special Tax B
Commencing with Fiscal Year 2022-2023 and for each following Fiscal Year, the Council shall determine the Special Tax B Requirement and shall levy the Special Tax B until the aggregate amount of Special Tax B equals the Special Tax B Requirement.
The Special Tax B shall be levied Proportionately on all Assessor’s Parcels of Developed Property up to 100% of the applicable Maximum Special Tax B to satisfy the Special Tax B Requirement.
3. Special Tax C (Contingent)
Commencing with the first Fiscal Year in which Special Tax C (Contingent) is authorized to be levied and for each following Fiscal Year, the City Council shall determine the Special Tax C (Contingent) Requirement for each Tax Zone, if any, and shall levy the Special Tax on all Assessor’s Parcels of Taxable Property within such Tax Zone until the a ggregate amount of Special Tax C (Contingent) equals the Special Tax C (Contingent) Requirement for such Tax Zone. The Special Tax C (Contingent) shall be levied for each Fiscal Year as follows:
First: The S pecial Tax C (Contingent) shall be levied P roportionately on all Assessor’s Parcels of Developed Property up to 100% of the applicable Maximum Special Tax C (Contingent) to satisfy the Special Tax C (Contingent) Requirement;
Second: If additional moneys are needed to satisfy the Special Tax C (Contingent) Requirement after the first step has been completed, the Special Tax C (Contingent) shall be levied Proportionately on each Parcel of Approved Property at up to 100% of t he Maximum Special Tax C (Contingent) for Approved Property;
Third: If additional monies are needed to satisfy the Special Tax C (Contingent) Requirement after the first two steps has b een completed, the Special Tax C (Contingent) shall be levied Proportionately on all Assessor’s Parcels of Undeveloped Property up to 100% of the Maximum Special Tax C (Contingent) for Undeveloped Property.
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E. FUTURE ANNEXATIONS
It is anticipated that additional properties will be annexed to CFD No. 2022-1 from time to time. As each annexation is proposed, an analysis will be prepared to determine the annual cost for providing Services.
Based on this analysis, the property to be annexed, pursuant to California Government Code section 53339 et seq. will be assigned to the appropriate Maximum Special Tax rate for the Tract or Tracts when annexed.
F. TERM OF SPECIAL TAX
For each Fiscal Year, the Special Taxes shall be levied as long as the Services are being provided.
G. EXEMPTIONS
The City shall classify as Exempt Property within CFD No. 2022-1 , any Assessor’s Parcel in any of the following categories; (i) Assessor’s Parcels whic h are owned by, irrevocably offered for dedication, encumbered by or restricted in use by any public entity; (ii) Assessor’s Parcels with public or utility easements making impractical their utilization for other than the purposes set forth in the easement; (iii) Assessor’s Parcels which are privately owned but are encumbered by or restricted solely for public uses; or (iv) any Assessor’s Parcel which is in use in the performance of a public function as determined by the Administrator. No Special Tax shall be levied on property which, at the time of adoption of the Resolution of Formation for CFD No. 2022-1, is an Exempt Property.
H. APPEALS
Any property owner claiming that the amount or application of the Special Taxes are not correct may file a written notice of appeal with the City not later than twelve months after having paid the first installment of the Special Tax(es) that is disputed. A representative(s) of CFD No. 2022-1 shall promptly review the appeal, and if necessary, meet with the property owner, consider written and oral evidence regarding the amount of the Special Tax, and rule on the appeal. If the representative’s decision requires that the Special Tax for an Assessor’s Parcel be modified or changed in favor of the property owner, a cash refu nd shall not be made, but an adjustment shall be made to the Special Tax on that Assessor’s Parcel in the subsequent Fiscal Year(s).
I. MANNER OF COLLECTION
The Special Tax(es) shall be collected in the same manner and at the same time as ordinary ad valore m property taxes, provided, however, that CFD No. 2022-1 may collect the Special Tax at a different time or in a different manner if necessary to meet its financial obligations.
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APPENDIX A
CITY OF WILDOMAR
COMMUNITY FACILITIES DISTRICT NO. 2022-1 (SERVICES)
COST ESTIMATE
Special Tax A Services – The estimate breaks down the costs of providing one year’s maintenance services for FY 2023-2024. These services are being funded by the levy of Special Tax A for Community Facilities District No. 2022-1 (Services).
TAX ZONE 6 – SPECIAL TAX A
LLA 2022-004
Item Description Estimated Cost
1 Lighting $129
2 Streets $2,327
3 Drainage $632
4 Parks $8,132
5 Graffiti $197
6 Reserves $326
7 Admin $1,863
Total $13,606
Special Tax B Services – It is estimated that the cost of providing Police and Fire Protection services being funded by Special Tax B for the Community Facilities District No. 2022 -1 (Services) as outlined in Exhibit “B” hereto, will be as follows for the first year:
TAX ZONE 6 – SPECIAL TAX B
LLA 2022-004
Land Use Category Unit Maximum Special Tax B
Multi-Family Residential Property RU $320.25
Special Tax C (Contingent) Services – There are no maintenance services proposed to be funded by the levy of Special Tax C (Contingent) for Community Facilities District No. 2017-1 Tax Zone 6.
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TAX ZONE 6
LLA 2022-004
FY 2023-2024 MAXIMUM SPECIAL TAX RATES
Taxable
Property
Land Use
Category
Taxable
Unit
Maximum
Special Tax A
Maximum
Special Tax B
Maximum
Special Tax C
(Contingent)
Developed Property Multi-Family Residential RU $153 $320.25 $0 Approved Property Multi-Family Residential RU $153 N/A $0 Undeveloped Property N/A Acre $3,351 N/A $0
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MAXIMUM SPECIAL TAXES ASSIGNED TO EACH TAX ZONE
FOR DEVELOPED PROPERTY
Tax
Zone
Fiscal
Year
Included Tract
No. of
Taxable
Units LUC
Taxable
Unit
Maximum
Special
Tax A
Maximum
Special
Tax B
Maximum
Special Tax C
(Contingent) Subdivider
Original 2022-23 TR 36672 136 SFR RU $408 $430 $261 Lennar Homes 1 2022-23 PP 13-0089 170 MFR RU $203 $305 $0 Villa Siena Property LLC 2 2022-23 TR 37476 77 SFR RU $583 $430 $262 KB Home Coastal Inc. 3 To Be Determined
4 2023-24 PM 37941 9.62 NR Acre $4,060 $0 $0
Strata Baxter, LLC and
Kaiser Foundation
Health Plan, Inc.
5 2023-24 TR 31896 117 SFR RU $788 $451.50 $503
D.R. Horton Los
Angeles Holding Co.
6 2023-24 LLA 2022-004 89 MFR RU $153 $320.25 $0 Wildomar Tres Lagos Partners LP
7 2023-24 TR
36781/36782 191 SFR RU $255 $451.50 $0 CPR/CWR Westpark Project, LLC
ESCALATION OF MAXIMUM SPECIAL TAXES
Maximum Special Tax A - On each July 1, the Maximum Special Tax A for Developed Property, Approved Property and Undeveloped Property shall increase by i) the percentage increase in the Consumer Price Index for all Urban Consumers for the Riverside-San Bernardino-Ontario California Standard Metropolitan Statistical Area since the beginning of the preceding Fiscal Year, not to exceed 6%, or ii) by two percent (2.0%), whichever is greater.
Maximum Special Tax B - On each July 1, the Maximum Special Tax B for Developed Property shall increase by i) the percentage increase in the Consumer Price Index for all Urban Consumers for the Riverside -San Bernardino-Ontario California Standard Metropolitan Statistical Area since the beginning of the preceding Fiscal Year, not to exceed 6%, or ii) by five percent (5.0%), whichever is greater.
Maximum Special Tax C (Contingent) - On each July 1, the Maximum Special Tax C (Contingent) for Developed Property, Approved Property and Undeveloped Property shall increase by i) the percentage increase in the Consumer Price Index for all Urban Consumers for the Riverside -San Bernardino-Ontario California Standard Metropolitan Statistical Area since the beginning of the preceding Fiscal Year, not to exceed 6%, or ii) by two percent (2.0%), whichever is greater.
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EXHIBIT B
CITY OF WILDOMAR
COMMUNITY FACILITIES DISTRICT NO. 2022-1 (SERVICES)
DESCRIPTION OF AUTHORIZED SERVICES
The services which may be financed with proceeds of the special tax of CFD No. 2022 -1, as provided by Section 53313 of the Act, will include all costs attributable to maintaining, servicing, cleaning, repairing and/or replacing landscaped areas (may include reserves for replacement) in public street right- of-ways, public landscaping, public open spaces and other similar landscaped areas officially dedicated for public use. In addition, the services which may include some or all costs attributable to police protection, and fire services. These services including the following:
(a) maintenance and lighting of parks, parkways, streets, roads and open space, which maintenance and lighting services may include, without limitation, furnishing of electrical power to street lights; repair and replacement of damaged or inoperative light bulbs, fixtures and standards; maintenance (including irrigation and replacement) of landscaping vegetation situated on or adjacent to parks, parkways, streets, roads and open space; maintenance and repair of irrigation facilit ies; maintenance of public signage; graffiti removal from and maintenance and repair of public structures situated on parks, parkways, streets, roads and open space; maintenance and repair of playground or recreation program equipment or facilities situated on any park; and
(b) maintenance and operation of water quality improvements which include storm drainage and flood protection facilities, including, without limitation, drainage inlets, catch basin inserts, infiltration basins, flood control channels, fossil fuel filters, and similar facilities. Maintenance services may include but is not limited to the repair, removal or replacement of all or part of any of the water quality improvements, fossil fuel filters within the public right -of-way including the removal of petroleum hydrocarbons and other pollutants from water runoff, or appurtenant facilities, clearing of inlets and outlets; erosion repairs; and cleanup to improvements, and other items necessary for the maintenance, servicing; or both of the wat er quality basin improvements within flood control channel improvements; and
(c) public street sweeping, on the segments of the arterials within the boundaries of CFD No. 2022-1; as well as local roads within residential subdivisions located within CFD No . 2022-1; and any portions adjacent to the properties within CFD No. 2022-1; and
(d) police protection services, including but not limited to criminal justice services, and fire protection and suppression services.
In addition to payment of the cost and expense of the forgoing services, proceeds of the special tax may be expended to pay “Administrative Expenses,” as said term is defined in the Rate and Method of Apportionment.
The above services shall be limited to those provided within the boundaries of CFD No. 2022-1 or for the benefit of the properties within the boundaries of CFD No. 2022-1, as the boundary is expanded from time to time by anticipated annexations, and said services may be financed by proceeds of the special tax of CFD No. 2022-1 only to the extent that they are in addition to those provided in the territory of CFD No. 2022-1 before CFD No. 2022-1 was created.
319
City of Wildo
mar 17
Community Facilities District No. 2022‐1 (Services)
EXHIBIT D
CITY OF WILDOMAR
COMMUNITY FACILITIES DISTRICT NO. 2022‐1 (SERVICES)
PROPOSED BOUNDARIES
320
380-100-021
BANYAN RIM DR
CATT RD
ARNETT RD
LEXI
LN
NONNIE
DR
HIGHLAND
OAKS
CT
COMMUNITY FACILITIES DISTRICT NO. 2022-1
(SERVICES)
OF THE CITY OF WILDOMAR,
COUNTY OF RIVERSIDE, STATE OF CALIFORNIA
SHEET 1 OF 1 SHEET
CFD 2022-1
TAX ZONE 6
\_
§¨¦15
WILDOMAR
THIS BOUNDARY MAP CORRECTLY SHOWS THE BOUNDARIES
OF THE COMMUNITY FACILITIES DISTRICT. FOR DETAILS
CONCERNING THE LINES AND DIMENSIONS OF LOTS OR
PARCEL REFER TO THE COUNTY ASSESSOR'S MAPS FOR
FISCAL YEAR 2022-23.
02 5 0 5 0 0125 Feet
-
PROPOSED ANNEXATION MAP NO. 6
LEGEND
CFD BOUNDARY
PARCEL LINE
CITY BOUNDARY
XXX-XXX-XXX ASSESSOR PARCEL NUMBER
THIS MAP SHOWS THE BOUNDARIES OF AREAS TO BE ANNEXED
TO COMMUNITY FACILITIES DISTRICT NO. 2022-1 (SERVICES)
OF THE CITY OF WILDOMAR, COUNTY OF RIVERSIDE, STATE
O F C A L I F O R N I A .
THE BOUNDARIES OF WHICH COMMUNITY FACILITIES DISTRICT
ARE SHOWN AND DESCRIBED ON THE MAP THEREOF WHICH
WAS PREVIOUSLY RECORDED ON APRIL 19, 2022, IN BOOK 88
OF MAPS OF ASSESSMENT AND COMMUNITY FACILITY DISTRICTS
AT PAGE 77 AND AS INSTRUMENT NO. 2022-0183915
IN THE OFFICE OF THE COUNTY RECORDER OF THE COUNTY OF
RIV ER SIDE, ST A TE OF CALIF ORNIA.
I HEREBY CERTIFY THAT THE WITHIN MAP OR AREAS TO BE ANNEXED TO COMMUNITY FACILITIES DISTRICT NO. 2022-1 (SERVICES)
OF THE CITY OF WILDOMAR, COUNTY OF RIVERSIDE, STATE OF
CALIFORNIA, WAS APPROVED BY THE CITY COUNCIL OF THE
CITY OF WILDOMAR AT A REGULAR MEETING THEREOF,
HELD ON ______ DAY OF ______, 20___,
B Y R E S O L U T I O N N O . _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ ___________________________________
CITY CLERK
C I T Y O F W I L D O M A R
RECORDED THIS ____ DAY OF _______________, 20____ AT
THE HOUR OF ____ O'CLOCK __M IN BOOK _____
PAGE _____ OF MAPS OF ASSESSMENT AND COMMUNITY
FACILITIES DISTRICTS IN THE OFFICE OF THE COUNTY
RECORDER, IN THE COUNTY OF RIVERSIDE, STATE OF
CALIFORNIA.
FEE: _____________ NO.: ______________________
PETER ALDANA, ASSESSOR, COUNTY CLERK, RECORDER
BY : _______________________________
D E P U T Y
FILED IN THE OFFICE OF THE CITY CLERK, CITY OF WILDOMAR, THIS ____ DAY OF ________, 20____.
______________________________
CITY CLERK
CITY OF WILDOMAR
6 TAX ZONE
6 321
EXHIBIT E
WAIVER AND CONSENT RESPECTING CONDUCT OF
MAILED BALLOT, LANDOWNER ELECTION
322
EXHIBIT F
NOTICE OF PUBLIC HEARING
323
NOTICE OF PUBLIC HEARING ON RESOLUTION OF INTENTION TO ANNEX
TERRITORY TO AN EXISTING COMMUNITY FACILITIES DISTRICT
(ANNEXATION NO. 6)
NOTICE IS HEREBY GIVEN that the City Council of the City of Wildomar on August 9, 2023 adopted its Resolution No. 2023-__, in which it declared its intention to annex territory to existing Community Facilities District No. 20 22-1 (Services) (the "CFD No. 2022- 1"), and to levy a special tax to pay for certain maintenance services, all pursuant to the provisions of the Mello- Roos Community Facilities Act of 1982, Chapter 2.5, Part 1, Division 2, Title 5 of the California Government Code. The resolution describes the territory to be annexed and describes the rate and method of apportionme nt of the proposed special tax.
No change in the tax levied in the existing CFD No. 2022-1 is proposed.
NOTICE IS HEREBY FURTHER GIVEN that the City Council has fixed 6:00 p.m., or as soon thereafter as practicable, Wednesday, September 13, 2023 in the City Council Chambers located at 23873 Clinton Keith Rd., Wildomar, California 92 595, as the time and place when and where the City Council will conduct a public hearing on the establishment of CFD No. 2022-1. At the hearing, the testimony of all interest persons for or against the annexation of the territory or the levying of the special taxes will be heard.
DATED: ____________, 20___ _________________________________________ City Clerk of the City of Wildomar
324
EXHIBIT G
SPECIAL ELECTION BALLOT
325
SPECIAL TAX ELECTION
CITY OF WILDOMAR
ANNEXATION OF TERRITORY TO
COMMUNITY FACILITIES DISTRICT NO. 2022-1 (SERVICES)
ANNEXATION NO. 6
(September 13, 2023)
This ballot is for the use of the authorized representative of the following owner of land within Annexation No. 6 of the Community Facilities District No. 2022-1 (Services) (“CFD No. 2022-1”) of the City of Wildomar:
Name of Landowner Number of Acres Owned Total Votes
Wildomar Tres Lagos Partners LP 4.06 5
According to the provisions of the Mello -Roos Community Facilities Act of 1982, and resolutions of the City Council (the “Council”) of the City of Wildomar (the “City”), the above-named landowner is entitled to cast the number of votes shown above under the heading “Total Votes,” representing the total votes for the property owned by said landowner. The City has sent the enclosed ballot to you so that you may vote on whether or not to approve the special tax.
This special tax ballot is for the use of the property owner of the parcels identified below, which parcels are located withi n the territory proposed to be annexed to the CFD No. 20 22-1, City of Wildomar, County of Rivers ide, State of California.
Please advise the City Clerk, at (951) 677-7751 x 210 if the name set forth below is incorrect or if you are no longer one of the owners of these parcels. This special tax ballot may be used to express either support for or opposition to the proposed special tax. To be counted, this special tax ballot must be signed below by the owner or, if the owner is not an individual, by an authorized representative of the owner. The ballot must then be delivered to the City Clerk, either by mail or in person, as follows:
Mail
Delivery: If by mail, place ballot in the return envelope provided, and mail no later than August 30, 2023 , two calendar weeks prior to the date set for the election. Mailing later than this deadline creates the risk that the special tax ballot may not be received in time to be counted.
Personal
Delivery: If in person, deliver to the City Clerk at any time up to 6:00 p.m. on September 13, 2023, at the Clerk’s office at 23873 Clinton Keith Road, Suite 201 Wildomar, CA 92595.
However delivered, this ballot must be received by the Clerk prior to the close of the public meeting on September 13, 2023.
Very truly yours,
Janet Morales
City Clerk
City of Wildomar
326
TO CAST THIS BALLOT, PLEASE RETURN THIS ENTIRE PAGE.
OFFICIAL SPECIAL TAX BALLOT
Name & Address of Property Owner: Assessor’s Parcel Number(s):
Wildomar Tres Lagos Partners LP
Attn: Danavon L. Horn
100 Pacifica, Suite 203
Irvine, CA 92618
380-100-021
ANNEXATION OF TERRITORY TO
COMMUNITY FACILITIES DISTRICT NO. 2022-1 (SERVICES)
ANNEXATION NO. 6
MARK AN “X” OR OTHER MARK WILL CAST ALL VOTES ASSIGNED TO THIS BALLOT
SPECIAL TAX BALLOT MEASURE MARK “YES” OR “NO”
WITH AN “X”:
Shall the City Council of the City of Wildomar be authorized to levy a special tax on an annual basis at the rates and apportioned as described in Exhibit C to the Resolution Declaring its Intention to Annex Territory to Community Facilities District No. 2022-1 (Services) adopted by the City Council on August 9 , 2023 (the “Resolution”), which is incorporated herein by this reference, within the territory identified on the map entitled “Annexation Map No. 6 of Community Facilities District No. 20 22-1 (Services) City of Wildomar” to finance certain services as set forth in Section 4 to the Resolution (including incidental expenses) and shall an appropriation limit be established for Community Facilities District No. 2022-1 (Services) in the amount of special taxes collected?
YES
NO
Certification for Special Election Ballot
The undersigned is an authorized representative of the above -named landowner and is the person legally authorized and entitled to cast this ballot on behalf of the above-named landowner.
I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct and that this declaration is executed on _________________________________, 20___________.
Wildomar Tres Lagos Partners LP
Danavon L. Horn
President
Signature
Print Name
Title
327
FREDERICK
ST
CATT RDAG
APE
LN
PALOMAR
ST
CLINTON
KEITH
RD
LEXI
LN
CRYSTAL
W
AY
ARNE
TT
RD
DELCA
LN
A
RNETT
EMPIRE PEAK LN
BAN
YAN
R
IM
DR
JOY CT
NAN ST §¨¦15
^_
BAXTER RD
M
ISSION TRL
HARVESTWAY
ORANGE
ST
PRAIRIE RD
CENTRAL ST
PALOMAR
ST
LAESTRELLARD
HICKORYLN BUNDY CANYON
RDLOST
RD
§¨¦15
CFD NO. 2022-1 (SERVICES)
ANNEXATION NO. 6
PROJECT MAP
328
1hr ratedshaft1hr ratedshaft 1hr ratedshaft1hr ratedshaft 1hr ratedshaft1hr ratedshaft 1hr ratedshaft1hr ratedshaft 1hr ratedshaft1hr ratedshaft1hr ratedshaft1hr ratedshaft1hr ratedshaft1hr ratedshaft1hr ratedshaft1hr ratedshaft 1hr ratedshaft1hr ratedshaft 1hr ratedshaft1hr ratedshaft 1hr ratedshaft1hr ratedshaft 1hr ratedshaft1hr ratedshaft SHEET OFSCALE: 1"=100'11BY: DSKDATE: 10/10/22JOB NO. PALM-002CFD EXHIBITSITE PLAN EXHIBITCFD MAINTENANCE TRES LAGOS PHASE 1
329
CITY OF WILDOMAR
CC - REGULAR MEETING
CONSENT CALENDAR
Agenda Staff Report # 1.14
Meeting Date: August
9, 2023
SUBJECT:
Establishment of Community Facilities District No. 2023-1 (Avalino)
SUBMITTED BY:
Emily Stadnik
PREPARED BY:
Ninette Eva
ACTION:
Adopt the following Resolutions:
RESOLUTION NO. 2023 - ___
RESOLUTION OF INTENTION OF THE CITY COUNCIL OF THE CITY OF WILDOMAR TO ESTABLISH COMMUNITY FACILITIES DISTRICT NO. 2023-1 (AVALINO) OF THE CITY OF
WILDOMAR, TO AUTHORIZE THE LEVY OF A SPECIAL TAX TO PAY THE COSTS OF
ACQUIRING OR CONSTRUCTING CERTAIN FACILITIES AND TO PAY DEBT SERVICE
ON BONDED INDEBTEDNESS
And
RESOLUTION NO. 2023 - ___
RESOLUTION OF INTENTION OF THE CITY COUNCIL OF THE CITY OF THE CITY OF
WILDOMAR TO INCUR BONDED INDEBTEDNESS IN AN AMOUNT NOT TO EXCEED $15,000,000 WITHIN PROPOSED COMMUNITY FACILITIES DISTRICT NO. 2023-1 (AVALINO) OF THE CITY OF WILDOMAR
BACKGROUND:
D.R. Horton Los Angeles Holding Company, Inc., a California corporation (the “Developer”), owns 41.76 gross acres of property in the City which is proposed to be developed into 117 single family residential homes. Such property is generally located to the southwest of Palomar Street and northeast of Rancho Mirlo Road. The Developer has requested that the City form a community facilities district (“CFD No. 2023-1” or the “District”) to encompass such property in accordance with the Mello-Roos Community Facilities Act of 1982, as amended (the “Act”), to finance the costs of certain public improvements through the levy of a special tax 330
and the issuance of bonds. The maximum amount of bonded indebtedness proposed is $15 million.
The Developer has requested that the boundaries of CFD No. 2023-1 include the area described in Attachment A of the Resolution of Intention to Establish CFD No. 2023-1 presented at this meeting (the “Resolution of Intention”), and that special taxes be levied within the boundaries of the District in accordance with the Rate and Method of Apportionment (the “RMA”) described in Attachment C to the Resolution of Intention. The Resolution of Intention is the first step in the process of forming CFD No. 2023-1. The attached Resolutions declare the City’s intention to establish CFD No. 2023-1, its intention to incur bonded indebtedness by CFD No. 2023-1, and calls for a public hearing. A public hearing on the matter will take place on September 13, 2023, and at that time the Council will formally consider approval to form CFD No. 2023-1, and hold elections on the approval of the special taxes and the need to incur bonded indebtedness within CFD No. 2023-1.
FISCAL IMPACT:
The Developer has made a deposit to pay for the costs of the formation proceedings which may be reimbursed to the Developer in accordance with a reimbursement agreement with the Developer. If established and subject to necessary Council and voter approvals, CFD No. 2023-1 will annually levy special taxes on all of the taxable property within the District in accordance with the RMA (as attached to the Resolution of Intention). Such special taxes will be used to pay for the costs of facilities, debt service on bonds and administration of CFD No. 2023-1. Any bonds issued by CFD No. 2023-1 are not obligations of the City and will be secured solely by the special taxes levied within CFD No. 2023-1.
The RMA provides that the annual special tax rates will range from $4,812 for home sizes less than 2,000 square feet to $5,545 for home sizes greater than 3,000 square feet, which rates escalate at 2% per year.
ATTACHMENTS:
RESOLUTION OF INTENTION TO ESTABLISH WILDOMAR 2023-1 (AVALINO).docx Landowner Petition Form Wildomar CFD 2023-1.pdf
RESOLUTION OF INTENTION TO INCUR DEBT WILDOMAR 2023-1 (AVALINO).doc REIMBURSEMENT AGREEMENT WILDOMAR 2023-1.docx
CFD 2023-1 Project Map.pdf
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RESOLUTION NO. 2023-___
RESOLUTION OF INTENTION OF THE CITY COUNCIL OF THE
CITY OF WILDOMAR TO ESTABLISH COMMUNITY
FACILITIES DISTRICT NO. 2023-1 (AVALINO) OF THE CITY OF
WILDOMAR, TO AUTHORIZE THE LEVY OF A SPECIAL TAX
TO PAY THE COSTS OF ACQUIRING OR CONSTRUCTING
CERTAIN FACILITIES AND TO PAY DEBT SERVICE ON
BONDED INDEBTEDNESS
WHEREAS, the City of Wildomar (the “City”) received a petition signed by the owner of more than ten percent of the land within the boundaries of the territory which is proposed for inclusion in a proposed community facilities district, which petition meets the requirements of Sections 53318 and 53319 of the Government Code of the State of California; and WHEREAS, the City Council of the City (the “City Council”) desires to adopt this resolution of intention as provided in Section 53321 of the Government Code of the State of California to establish a community facilities district consisting of the territory described in Attachment “A” hereto and incorporated herein by this reference, which the City Council hereby determines shall be known as “Community Facilities District No. 2023-1 (Avalino) of the City of Wildomar” (“Community Facilities District No. 2023-1” or the “District”) pursuant to the Mello-Roos Community Facilities Act of 1982, as amended, commencing with Section 53311 of the Government Code (the “Act”) to finance (1) the purchase, construction, modification, expansion, improvement or rehabilitation of certain real or other tangible property described in Attachment “B” hereto and incorporated herein by this reference, including all furnishings, equipment and supplies related thereto (collectively, the “Facilities”), which Facilities have a useful life of five years or longer, and (2) the incidental expenses to be incurred in connection with financing the Facilities and forming and administering the District (the “Incidental Expenses”); and WHEREAS, the City Council further intends to approve an estimate of the costs of the Facilities and the Incidental Expenses for Community Facilities District No. 2023-1; and WHEREAS, it is the intention of the City Council to consider financing the Facilities and the Incidental Expenses through the formation of Community Facilities District No. 2023-1 and the issuance of bonded indebtedness in an amount not to exceed $15,000,000 with respect to the Facilities and the Incidental Expenses and the levy of a special tax to pay for the Facilities and the Incidental Expenses (the “Special Tax”) and to pay debt service on the bonded indebtedness, provided that the bond sale and such Special Tax levy are approved at an election to be held within the boundaries of Community Facilities District No. 2023-1; WHEREAS, the City desires to enter into a reimbursement agreement with D.R. Horton Los Angeles Holding Company, Inc., (the “Developer”), the form of which is on file with the City Clerk (the “Reimbursement Agreement”), to provide for the reimbursement of certain amounts advanced by the Developer in connection with the formation of the District; WHEREAS, the City and the Developer propose to enter into joint community facilities agreements (the “JCFAs”) with Elsinore Valley Municipal Water District (the “Water District”) relating to certain facilities proposed to be financed by the District and owned and operated by the Water District, and the District expects to enter into the JCFA prior to the approval of the issuance of bonds pursuant to the Act.
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NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF WILDOMAR DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS:
Section 1. The above recitals are true and correct.
Section 2. A community facilities district is proposed to be established under the terms of the Act. It is further proposed that the boundaries of the community facilities district shall be the legal boundaries as described in Attachment “A” hereto, which boundaries shall, upon recordation of the boundary map for the District, include the entirety of any parcel subject to taxation by the District, and as depicted on the map of the proposed Community Facilities District No. 2023-1 which is on file with the City Clerk. The City Clerk is hereby directed to sign the original map of the District and record it with all proper endorsements thereon with the Assessor-County Clerk-Recorder of the County of Riverside within 15 days after the adoption of this resolution, all as required by Section 3111 of the Streets and Highways Code of the State of California.
Section 3. The name of the proposed community facilities district shall be “Community Facilities District No. 2023-1 (Avalino) of the City of Wildomar.” Section 4. The Facilities proposed to be provided within Community Facilities District No. 2023-1 are public facilities as defined in the Act, which the City and the Water District, with respect to certain water and sewer facilities, are authorized by law to construct, acquire, own and operate. The City Council hereby finds and determines that the description of the Facilities herein is sufficiently informative to allow taxpayers within the proposed District to understand what the funds of the District may be used to finance. The Incidental Expenses expected to be incurred include the cost of planning and designing the Facilities, the costs of forming the District, issuing bonds and levying and collecting the Special Tax within the proposed District.
The Facilities may be acquired from one or more of the property owners within the District as completed public improvements or may be constructed from bond or Special Tax proceeds.
All or a portion of the Facilities may be purchased with District funds as completed public facilities pursuant to Section 53314.9 or as discrete portions or phases pursuant to Section 53313.51 of the Act and/or constructed with District funds pursuant to Section 53316.2 of the Act. Any portion of the Facilities may be financed through a lease or lease-purchase arrangement if the District hereafter determines that such arrangement is of benefit to the District.
Section 5. Except where funds are otherwise available, it is the intention of the City Council to levy annually in accordance with the procedures contained in the Act the Special Tax, secured by recordation of a continuing lien against all nonexempt real property in the District, sufficient to pay for: (i) the Facilities and Incidental Expenses; and (ii) the principal and interest and other periodic costs on bonds or other indebtedness issued to finance the Facilities and Incidental Expenses, including the establishment and replenishment of any reserve funds deemed necessary by the District, and any remarketing, credit enhancement and liquidity facility fees (including such fees for instruments which serve as the basis of a reserve fund in lieu of cash). The rate and method of apportionment and manner of collection of the Special Tax are described in detail in Attachment “C” attached hereto, which Attachment “C” is incorporated herein by this reference. Attachment “C” allows each landowner within the District to estimate the maximum amount of the Special Tax that may be levied against each parcel. In the first year in which such Special Tax is levied, the levy shall include an amount sufficient to repay to 333
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the District all amounts, if any, transferred to the District pursuant to Section 53314 of the Act and interest thereon.
If the Special Tax is levied against any parcel used for private residential purposes, (i) the maximum Special Tax rate shall be specified as a dollar amount which shall be calculated and established not later than the date on which the parcel is first subject to the Special Tax because of its use for private residential purposes and shall not be increased over time, except as set forth in Attachment “C” hereto, (ii) such Special Tax shall not be levied after fiscal year 2065-66 as described in Attachment “C” hereto, and (iii) under no circumstances will the Special Tax levied in any fiscal year against any such parcel used for private residential uses be increased as a consequence of delinquency or default by the owner or owners of any other parcel or parcels within the District by more than ten percent (10%) above the amount that would have been levied in that fiscal year had there never been any such delinquencies or defaults.
The Special Tax is based on the expected demand that each parcel of real property within proposed Community Facilities District No. 2023-1 will place on the Facilities and on the benefit that each parcel derives from the right to access the Facilities. The City Council hereby determines that the proposed Facilities are necessary to meet the increased demand placed upon the City and the existing infrastructure in the City as a result of the development of the land proposed for inclusion in the District. The City Council hereby determines the rate and method of apportionment of the special tax with respect to the Special Tax set forth in Attachment “C” to be reasonable. The Special Tax is apportioned to each parcel on the foregoing basis pursuant to Section 53325.3 of the Act and such special tax is not on or based upon the value or ownership of real property. In the event that a portion of the property within Community Facilities District No. 2023-1 shall become for any reason exempt, wholly or partially, from the levy of the Special Tax specified on Attachment “C,” the City Council shall, on behalf of Community Facilities District No. 2023-1, cause the levy to be increased, subject to the limitation of the maximum Special Tax for a parcel as set forth in Attachment “C,” to the extent necessary upon the remaining property within proposed Community Facilities District No. 2023- 1 which is not exempt in order to yield the Special Tax revenues required for the purposes described in this Section 5. The obligation to pay the Special Tax may be prepaid only as set forth in Section G of Attachment “C” hereto.
Section 6. A public hearing (the “Hearing”) on the establishment of the proposed Community Facilities District No. 2023-1, the proposed rate and method of apportionment of the Special Tax and the proposed issuance of bonds to finance the Facilities and the Incidental Expenses shall be held at 6:00 p.m., or as soon thereafter as practicable, on September 13, 2023, at the City Council Chambers, 23873 Clinton Keith Road, Suite 106, Wildomar, California 92595. Should the City Council determine to form the District, a special election will be held to authorize the issuance of the bonds and the levy of the Special Tax in accordance with the procedures contained in Government Code Section 53326. If held, the proposed voting procedure at the election will be a landowner vote with each landowner who is the owner of record of land within the District at the close of the Hearing, or the authorized representative thereof, having one vote for each acre or portion thereof owned within the proposed District.
Ballots for the special election may be distributed by mail or by personal service.
Section 7. At the time and place set forth above for the Hearing, the City Council will receive testimony as to whether the proposed Community Facilities District No. 2023-1 shall be established and as to the method of apportionment of the special tax and shall consider:
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(a) if an ad valorem property tax is currently being levied on property within proposed Community Facilities District No. 2023-1 for the exclusive purpose of paying principal of or interest on bonds, lease payments or other indebtedness incurred to finance construction of capital facilities; and
(b) if the capital facilities to be financed and constructed by Community Facilities District No. 2023-1 will provide the same services as were provided by the capital facilities mentioned in subsection (a); and
(c) if the City Council makes the findings specified in subsections (a) and (b) above, it will consider appropriate action to determine whether the total annual amount of ad valorem property tax revenue due from parcels within Community Facilities District No. 2023-1, for purposes of paying principal and interest on the debt identified in subsection (a) above, shall not be increased after the date on which Community Facilities District No. 2023-1 is established, or after a later date determined by the City Council with the concurrence of the legislative body which levied the property tax in question.
Section 8. At the time and place set forth above for the Hearing, any interested person, including all persons owning lands or registered to vote within proposed Community Facilities District No. 2023-1, may appear and be heard.
Section 9. Each City officer who is or will be responsible for providing the Facilities within proposed Community Facilities District No. 2023-1, if it is established, is hereby directed to study the proposed District and, at or before the time of the above-mentioned Hearing, file a report with the City Council containing a brief description of the public facilities by type which will in his or her opinion be required to meet adequately the needs of Community Facilities District No. 2023-1 and an estimate of the cost of providing those public facilities, including the cost of environmental evaluations of such facilities and an estimate of the fair and reasonable cost of any Incidental Expenses to be incurred.
Section 10. The District may accept advances of funds or work-in-kind from any source, including, but not limited to, private persons or private entities, for any authorized purpose, including, but not limited to, paying any cost incurred in creating Community Facilities District No. 2023-1. The District may enter into an agreement with the person or entity advancing the funds or work-in-kind, to repay all or a portion of the funds advanced, or to reimburse the person or entity for the value, or cost, whichever is less, of the work-in-kind, as determined by the City Council, with or without interest.
Section 11. The City Clerk is hereby directed to publish a notice (the “Notice”) of the Hearing pursuant to Section 6061 of the Government Code in a newspaper of general circulation published in the area of proposed Community Facilities District No. 2023-1. The City Clerk is further directed to mail a copy of the Notice to each of the landowners within the boundaries of the District at least 15 days prior to the Hearing. The Notice shall contain the text or a summary of this Resolution, the time and place of the Hearing, a statement that the testimony of all interested persons or taxpayers will be heard, a description of the protest rights of the registered voters and landowners in the proposed district and a description of the proposed voting procedure for the election required by the Act. Such publication shall be completed at least seven (7) days prior to the date of the Hearing.
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Section 12. The reasonably expected maximum principal amount of the bonded indebtedness to be incurred by the District for the Facilities and Incidental Expenses is Fifteen Million Dollars ($15,000,000).
Section 13. The form of the Reimbursement Agreement is hereby approved. The Mayor, the City Manager, or their written designees are hereby authorized and directed to execute and deliver the Reimbursement Agreement in the form on file with the City Clerk with such changes, insertions and omissions as may be approved by the officer or officers executing such agreement, said execution being conclusive evidence of such approval.
Section 14. Except to the extent limited in any bond resolution or trust indenture related to the issuance of bonds, the City Council hereby reserves to itself all rights and powers set forth in Section 53344.1 of the Act (relating to tenders in full or partial payment).
Section 15. This Resolution shall be effective upon its adoption.
PASSED, APPROVED AND ADOPTED this 9th day of August, 2023:
Joseph Morabito
Mayor
APPROVED AS TO FORM: ATTEST:
Thomas D. Jex Janet Morales
City Attorney City Clerk
336
6 4890-6620-1456v3/200945-0004
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.
CITY OF WILDOMAR )
I, Janet Morales, City Clerk of the City of Wildomar, California, do hereby certify that Resolution No. ____________ was adopted by the City Council of the City of Wildomar, California, at the Regular meeting of August 9, 2023 and that the same was adopted by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
________________________________
Janet Morales
City Clerk
City of Wildomar
337
A-1
4890-6620-1456v3/200945-0004
ATTACHMENT A
BOUNDARY MAP
338
A-2
4890-6620-1456v3/200945-0004
The property in the District is described as follows:
Real property in the City of Wildomar, County of Riverside, State of California, described as follows:
Fiscal Year 2022-23 Assessor Parcel Nos.:
380-160-017
380-160-018
380-210-003
380-210-004
380-210-005
380-210-008
380-210-016
339
B-1
4890-6620-1456v3/200945-0004
ATTACHMENT B
Types of Facilities
to Be Financed by Community
Facilities District No. 2023-1 (Avalino) of the City of Wildomar The proposed types of public facilities and expenses to be financed by the District include:
The construction, purchase, modification, expansion, rehabilitation and/or improvement of (i) drainage, library, park, police, fire, roadway, traffic, administration and community center facilities, and other public facilities of the City, including the foregoing public facilities which are included in the City’s fee programs with respect to such facilities and authorized to be financed under the Act (the “City Facilities”), and (ii) water and sewer facilities including the acquisition of capacity in the sewer system and/or water system of the Elsinore Valley Municipal Water District which are included in Elsinore Valley Municipal Water District’s water and sewer capacity and connection fee programs (the “Water District Facilities” and together, with the City Facilities, the “Facilities”), and all appurtenances and appurtenant work in connection with the foregoing Facilities, including the cost of engineering, planning, designing, materials testing, coordination, construction staking, construction management and supervision for such Facilities, and to finance the incidental expenses to be incurred, including:
a. The cost of engineering, planning and designing the Facilities; b. All costs, including costs of the property owner petitioning to form the District, associated with the creation of the District, the issuance of the bonds, the determination of the amount of special taxes to be levied and costs otherwise incurred in order to carry out the authorized purposes of the District; and
c. Any other expenses incidental to the construction, acquisition, modification, rehabilitation, completion and inspection of the Facilities.
Capitalized terms used and not defined herein shall have the meaning set forth in the Rate and Method of Apportionment of Special Taxes for the District. 340
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ATTACHMENT C
RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAXES FOR
COMMUNITY FACILITIES DISTRICT NO. 2023-1 (AVALINO)
OF THE CITY OF WILDOMAR
A Special Tax (all capitalized terms not otherwise defined herein are defined in Section A, “Definitions”, below) shall be applicable to each Assessor’s Parcel of Taxable Property located within the boundaries of the City of Wildomar Community Facilities District No. 2023-1 (Avalino) of the City of Wildomar ("CFD No. 2023-1"). The amount of Special Tax to be levied in each Fiscal Year on an Assessor’s Parcel shall be determined by the City Council of the City of Wildomar, acting in its capacity as the legislative body of CFD No. 2023-1, by applying the appropriate Special Tax for Developed Property, Approved Property, Undeveloped Property, and Provisional Undeveloped Property that is not Exempt Property as set forth below. All of the real property, unless exempted by law or by the provisions hereof in Section F, shall be taxed for the purposes, to the extent and in the manner herein provided.
A. DEFINITIONS
The terms hereinafter set forth have the following meanings:
“Accessory Dwelling Unit” means a residential unit of limited size including a smaller second unit that shares an Assessor’s Parcel as a Single Family Residential Property with a stand- alone Residential Unit.
"Acre” or “Acreage" means the land area of an Assessor's Parcel as shown on an Assessor's Parcel Map, or if the land area is not shown on an Assessor’s Parcel Map, the land area shown on the applicable final map, parcel map, condominium plan, or other recorded parcel map or instrument. The square footage of an Assessor’s Parcel is equal to the Acreage multiplied by 43,560.
"Act" means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5 (commencing with Section 53311) of Part 1 of Division 2 of Title 5 of the Government Code of the State of California.
"Administrative Expenses" means the following actual or reasonably estimated costs directly related to the administration of CFD No. 2023-1: the costs of computing the Special Taxes and preparing the Special Tax collection schedules (whether by the City or designee thereof or both); the costs of collecting the Special Taxes (whether by the City or otherwise); the costs of remitting Special Taxes to the Trustee; the costs of the Trustee (including legal counsel) in the discharge of the duties required of it under the Indenture; the costs to the City, CFD No. 2023-1 or any designee thereof of complying with arbitrage rebate requirements; the costs to the City, CFD No. 2023-1 or any designee thereof of complying with continuing disclosure requirements of the City, CFD No. 2023-1 and any major property owner associated with applicable federal and state securities laws and the Act; the costs associated with preparing Special Tax disclosure statements and responding to public inquiries regarding the Special Taxes; the costs of the City, CFD No. 2023-1 or any designee thereof related to an appeal of the Special Tax; the costs associated with the release of funds from an escrow account; and the City’s annual administration fees and third party expenses. Administration Expenses shall also include amounts estimated by the CFD Administrator or advanced by the City or CFD No. 2023-1 for 341
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any other administrative purposes of CFD No. 2023-1, including attorney’s fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes. "Approved Property" means all Assessor’s Parcels of Taxable Property: (i) that are included in a Final Map that was recorded prior to the January 1 st preceding the Fiscal Year in which the Special Tax is being levied, (ii) that have an assigned Assessor’s Parcel Number from the County shown on an Assessor’s Parcel Map for the individual lot included on the Final Map, and (iii) that have not been issued a building permit on or before May 1st preceding the Fiscal Year in which the Special Tax is being levied.
"Assessor’s Parcel" means a lot or parcel of land designated on an Assessor’s Parcel Map with an assigned Assessor’s Parcel Number.
"Assessor’s Parcel Map" means an official map of the Assessor of the County designating parcels by Assessor’s Parcel Number.
"Assessor’s Parcel Number" means that number assigned to an Assessor’s Parcel by the County for purposes of identification.
"Assigned Special Tax" means the Special Tax of that name described in Section D below. "Backup Special Tax" means the Special Tax of that name described in Section D below. "Bonds" means any obligation to repay a sum of money, including obligations in the form of bonds, certificates of participation, long-term leases, loans from government agencies, or loans from banks, other financial institutions, private businesses, or individuals, or long-term contracts, or any refunding thereof, to which the Special Tax of CFD No. 2023-1 has been pledged. "Building Permit" means the first legal document issued by the City giving official permission for new construction. For purposes of this definition, “Building Permit” may or may not include expired or cancelled building permits, or any subsequent building permit document(s) authorizing new construction on an Assessor’s Parcel that are issued or changed by the City after the first original issuance, as determined by the CFD Administrator, provided that following such determination the Maximum Special Tax that may be levied on all Assessor’s Parcels of Taxable Property will be at least 1.1 times annual debt service on all outstanding Bonds plus the estimated annual Administrative Expenses.
"Building Square Footage" or "BSF" means the square footage of assessable internal living space, exclusive of garages or other structures not used as living space, as determined by reference to the Building Permit for such Assessor’s Parcel. "Calendar Year" means the period commencing January 1 of any year and ending the following December 31.
"CFD” or “CFD No. 2023-1" means Community Facilities District No. 2023-1 (Avalino) of the City of Wildomar established by the City under the Act. “CFD Administrator" means an official of the City, or designee thereof, responsible for determining the Special Tax Requirement, and providing for the levy and collection of the Special Taxes.
“City” means the City of Wildomar, State of California. 342
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"City Council" means the City Council of the City of Wildomar, acting as the legislative body of CFD No. 2023-1.
“Condominium Plan" means a condominium plan pursuant to California Civil Code, Section 6624.
"County" means the County of Riverside, State of California. "Developed Property" means all Assessor’s Parcels that: (i) are included in a Final Map that was recorded prior to the January 1 st preceding the Fiscal Year in which the Special Tax is being levied, and (ii) for which a Building Permit for new construction was issued on or before May 1st preceding the Fiscal Year in which the Special Tax is being levied. "Exempt Property" means all Assessor’s Parcels designated as being exempt from Special Taxes as provided for in Section F.
"Final Map" means a subdivision of property by recordation of a final map, parcel map, or lot line adjustment, pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) or recordation of a Condominium Plan pursuant to California Civil Code Section 6624 that creates individual lots for which Building Permits may be issued without further subdivision.
"Fiscal Year" means the period commencing on July 1 st of any year and ending the following June 30th.
“Indenture” means the indenture, fiscal agent agreement, resolution or other instrument pursuant to which Bonds are issued, as modified, amended and/or supplemented from time to time, and any instrument replacing or supplementing the same. “Land Use Category”means any of the categories listed in Table 1 of Section D. "Maximum Special Tax" means for each Assessor’s Parcel, the maximum Special Tax, determined in accordance with Section D below, that can be levied by CFD No. 2023-1 on such Assessor’s Parcel.
“Multifamily Property” means all Assessor’s Parcels of Developed Property for which a Building Permit has been issued for the purpose of constructing a building or buildings comprised of attached Residential Units available for rental by the general public, not for sale to an end user, and under common management, as determined by the CFD Administrator. "Non-Residential Property" means all Assessor's Parcels of Developed Property for which a Building Permit(s) was issued for a non-residential use. The CFD Administrator shall make the determination if an Assessor’s Parcel is Non-Residential Property. "Partial Prepayment Amount" means the amount required to prepay a portion of the Special Tax obligation for an Assessor’s Parcel, as described in Section G.2. "Prepayment Amount" means the amount required to prepay the Special Tax obligation in full for an Assessor’s Parcel, as described in Section G.1.
“Proportionately” means for Taxable Property that is (i) Developed Property, that the ratio of the actual Special Tax levy to the Assigned Special Tax is the same for all Assessor’s Parcels of 343
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Developed Property, (ii) Approved Property, that the ratio of the actual Special Tax levy to the Maximum Special Tax is the same for all Assessor’s Parcels of Approved Property, and (iii) Undeveloped Property or Provisional Undeveloped Property, that the ratio of the actual Special Tax levy per Acre to the Maximum Special Tax per Acre is the same for all Assessor’s Parcels of Undeveloped Property or Provisional Undeveloped Property, as applicable. "Provisional Undeveloped Property" means all Assessor’s Parcels of Taxable Property that would otherwise be classified as Exempt Property pursuant to the provisions of Section F, but cannot be classified as Exempt Property because to do so would reduce the Acreage of all Taxable Property below the required minimum Acreage set forth in Section F. "Residential Property" means all Assessor’s Parcels of Developed Property for which a Building Permit has been issued for purposes of constructing one or more Residential Units. “Residential Unit” or "RU" means a residential unit that is used or intended to be used as a domicile by one or more persons, as determined by the CFD Administrator. An Accessory Dwelling Unit that shares an Assessor’s Parcel with a Single Family Residential Property shall not be considered a Residential Unit for purposes of this RMA. “RMA" means this Rate and Method of Apportionment of Special Taxes. “Single Family Residential Property” means all Assessor’s Parcels of Residential Property other than Multifamily Property.
"Special Tax" or “Special Taxes” means any of the special taxes authorized to be levied within CFD No. 2023-1 pursuant to the Act to fund the Special Tax Requirement. "Special Tax Requirement " means the amount required in any Fiscal Year to pay: (i) the debt service or the periodic costs on all outstanding Bonds due in the Calendar Year that commences in such Fiscal Year, (ii) Administrative Expenses, (iii) the costs associated with the release of funds from an escrow account, (iv) any amount required to replenish any reserve funds established in association with the Bonds (provided that the same amount was not previously levied), (v) an amount up to any anticipated shortfall (based on the prior year’s delinquency rate) due to Special Tax delinquencies and (vi) for the collection or accumulation of funds for the acquisition or construction of facilities authorized by CFD No. 2023-1 or the payment of debt service on Bonds anticipated to be issued, provided that the inclusion of such amount does not cause an increase in the levy of Special Tax on Approved Property or Undeveloped Property as set forth in Steps Two or Three of Section E., less (vii) any amounts available to pay debt service or other periodic costs on the Bonds pursuant to the Indenture. "Taxable Property" means all Assessor’s Parcels within CFD No. 2023-1, which are not Exempt Property.
“Taxable Unit” means either a Residential Unit or an Acre. “Trustee” means the trustee, fiscal agent, or paying agent under the Indenture. "Undeveloped Property" means all Assessor’s Parcels of Taxable Property which are not Developed Property, Approved Property, or Provisional Undeveloped Property. 344
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B. SPECIAL TAX
Commencing Fiscal Year 2023-2024 and for each subsequent Fiscal Year, the City Council shall levy Special Taxes on all Taxable Property, up to the applicable Maximum Special Tax, to fund the Special Tax Requirement.
C. ASSIGNMENT TO LAND USE CATEGORY FOR SPECIAL TAX
Each Fiscal Year, beginning with Fiscal Year 2023-2024, each Assessor’s Parcel within CFD No. 2023-1 shall be classified as Taxable Property or Exempt Property. In addition, each Assessor’s Parcel of Taxable Property shall be further classified as Developed Property, Approved Property, Undeveloped Property or Provisional Undeveloped Property.
Assessor’s Parcels of Developed Property shall further be classified as Residential Property or Non-Residential Property. Each Assessor’s Parcel of Residential Property shall further be classified as a Single Family Residential Property or Multifamily Property. Each Assessor’s Parcel of Single Family Residential Property shall be further assigned to a Land Use Category based on its Building Square Footage.
In the event that there are Assessor’s Parcel(s) for which one or more Building Permits for Residential Units have been issued and the County has not yet assigned final Assessor’s Parcel Number(s) to such Assessor’s Parcel(s) (in accordance with the Final Map or Condominium Plan), the amount of the Special Tax levy on such Assessor’s Parcel for each Fiscal Year shall be determined as follows: (1) the CFD Administrator shall first determine an amount of the Maximum Special Tax for such Assessor’s Parcel, based on the classification of such Assessor’s Parcel as Undeveloped Property; (2) the amount of the Special Tax for the Residential Units on such Assessor’s Parcel for which Building Permits have been issued shall be determined based on the Developed Property Special Tax rates and such amount shall be levied as Developed Property in accordance with Step 1 of Section E below; and (3) the amount of the Special Tax on the Taxable Property in such Assessor’s Parcel not subject to the Special Tax levy in clause (2) shall be equal to: (A) the percentage of the Maximum Special Tax rate levied on Undeveloped Property pursuant to Step 3 of Section E below, multiplied by the total of the amount determined in clause (1), less (B) the amount determined in clause (2).
D. MAXIMUM SPECIAL TAX
1. Developed Property
The Maximum Special Tax for each Assessor’s Parcel of Single Family Residential Property in any Fiscal Year shall be the greater of (i) the Assigned Special Tax for such Assessor’s Parcel or (ii) the Backup Special Tax.
The Maximum Special Tax for each Assessor’s Parcel of Multifamily Property and Non- Residential Property shall be the applicable Assigned Special Tax described in Table 1 of Section D.
a. Assigned Special Tax
Each Fiscal Year, each Assessor’s Parcel of Single Family Residential Property, Multifamily Property or Non-Residential Property shall be subject to an Assigned Special Tax. The Assigned Special Tax for Fiscal Year 2023-2024 applicable to an Assessor's Parcel of Developed Property shall be determined pursuant to Table 1 below. 345
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TABLE 1
ASSIGNED SPECIAL TAX FOR DEVELOPED PROPERTY
FISCAL YEAR 2023-2024
Land Use Category
Taxable
Unit
Building Square
Footage
Assigned
Special Tax
Per Taxable
Unit
1. Single Family Residential Property RU Less than 2,000 sq. ft $4,812.00
2. Single Family Residential Property RU 2,000 sq. ft to 2,250 sq. ft $4,918.00
3. Single Family Residential Property RU 2,251 sq. ft to 2,500 sq. ft $5,044.00
4. Single Family Residential Property RU 2,501 sq. ft to 2,750 sq. ft $5,169.00
5. Single Family Residential Property RU 2,751 sq. ft to 3,000 sq. ft $5,487.00
6. Single Family Residential Property RU Greater than 3,000 sq. ft $5,545.00
7. Multifamily Property Acre N/A $28,365.00
8. Non-Residential Property Acre N/A $28,365.00
On each July 1, commencing July 1, 2024, the Assigned Special Tax rate for Developed Property shall be increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year.
b. Multiple Land Use Categories
In some instances an Assessor’s Parcel of Developed Property may contain more than one Land Use Category. The Maximum Special Tax levied on an Assessor’s Parcel shall be the sum of the Maximum Special Tax for each Taxable Unit for all Land Use Categories located on the Assessor’s Parcel. The CFD Administrator’s allocation to each type of property shall be final.
c. Backup Special Tax
The Backup Special Tax for an Assessor’s Parcel within a Final Map classified as Single Family Residential Property shall be $5,448 per Residential Unit.
Notwithstanding the foregoing, if all or any portion of the applicable Final Maps and/or condominium plan contained within the boundaries of CFD No. 2023-1 is subsequently changed or modified, then the Backup Special Tax for Single Family Residential Property or Approved Property in such Final Map or condominium plan area that is changed or modified shall be recalculated as follows:
1. Determine the total Backup Special Taxes anticipated to apply to the changed or modified Final Map or condominium plan area prior to the change or modification.
2. The result of paragraph 1 above shall be divided by the total number of Residential Units constructed and/or anticipated to be constructed within such changed or modified Final Map or condominium plan area, as reasonably determined by the CFD Administrator.
The result of paragraph 2 is the Backup Special Tax per Residential Unit which shall be applicable to Assessor’s Parcels of Single Family Residential Property or Approved Property 346
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in such changed or modified Final Map or condominium plan area contained within the boundaries of CFD No. 2023-1.
Notwithstanding the foregoing, the Backup Special Tax for an Assessor’s Parcel of Developed Property for which a certificate of occupancy has been granted may not be revised.
On each July 1, commencing July 1, 2024, the Backup Special Tax rate shall be increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year.
2. Approved Property
The Maximum Special Tax for each Assessor’s Parcel of Approved Property expected to be classified as Single Family Residential Property shall be the Backup Special Tax computed pursuant to Section D.1.c above.
The Maximum Special Tax for each Assessor’s Parcel of Approved Property not expected to be classified as Single Family Residential Property shall be $28,365 per Acre.
On each July 1, commencing July 1, 2024, the Maximum Special Tax rate for Approved Property shall be increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year.
3. Undeveloped Property and Provisional Undeveloped Property The Maximum Special Tax for each Assessor’s Parcel of Undeveloped Property and Provisional Undeveloped Property shall be $28,365 per Acre.
On each July 1, commencing July 1, 2024, the Maximum Special Tax rate for Undeveloped Property and Provisional Undeveloped Property shall be increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year.
E. METHOD OF APPORTIONMENT OF THE SPECIAL TAX
Commencing Fiscal Year 2023-2024 and for each subsequent Fiscal Year, the City Council shall levy Special Taxes on all Taxable Property in accordance with the following steps:
Step One: (i) Prior to the first issuance of Bonds, the Special Tax shall be levied at 100% of the applicable Assigned Special Tax rates on Developed Property and (ii) subsequent to the first issuance of Bonds, the Special Tax shall be levied Proportionately on each Assessor’s Parcel of Developed Property at up to 100% of the applicable Assigned Special Tax rates in Table 1 to satisfy the Special Tax Requirement.
Step Two: If additional moneys are needed to satisfy the Special Tax Requirement after the first step has been completed, the Special Tax shall be levied Proportionately on each Assessor’s Parcel of Approved Property at up to 100% of the Maximum Special Tax applicable to each such Assessor’s Parcel as needed to satisfy the Special Tax Requirement.
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Step Three: If additional moneys are needed to satisfy the Special Tax Requirement after the first two steps have been completed, the Special Tax shall be levied Proportionately on each Assessor’s Parcel of Undeveloped Property up to 100% of the Maximum Special Tax applicable to each such Assessor’s Parcel as needed to satisfy the Special Tax Requirement.
Step Four: If additional moneys are needed to satisfy the Special Tax Requirement after the first three steps have been completed, then the Special Tax levy on each Assessor's Parcel of Developed Property for which the Maximum Special Tax is the Backup Special Tax shall be increased in equal percentages from the Assigned Special Tax up to 100% of the Backup Special Tax as needed to satisfy the Special Tax Requirement.
Step Five: If additional moneys are needed to satisfy the Special Tax Requirement after the first four steps have been completed, the Special Tax shall be levied Proportionately on each Assessor’s Parcel of Provisional Undeveloped Property up to 100% of the Maximum Special Tax applicable to each such Assessor’s Parcel as needed to satisfy the Special Tax Requirement.
Notwithstanding the above, under no circumstances will the Special Taxes levied in any Fiscal Year against any Assessor’s Parcel of Residential Property as a result of a delinquency in the payment of the Special Tax applicable to any other Assessor’s Parcel be increased by more than ten percent (10%) above the amount that would have been levied in that Fiscal Year had there never been any such delinquency or default.
F. EXEMPTIONS
The City shall classify as Exempt Property, in the chronological order in which they become exempt, (i) Assessor’s Parcels which are owned by, irrevocably offered for dedication, encumbered by or restricted in use by the State of California, Federal or other local governments, including school districts, (ii) Assessor’s Parcels which are used as places of worship and are exempt from ad valorem property taxes because they are owned by a religious organization, (iii) Assessor’s Parcels which are owned by, irrevocably offered for dedication, encumbered by or restricted in use by a homeowners' association, (iv) Assessor’s Parcels with public or utility easements making impractical their utilization for other than the purposes set forth in the easement, (v) Assessor’s Parcels which are privately owned and are encumbered by or restricted solely for public uses, (vi) Assessor’s Parcels which are classified as Non- Residential Property or (vii) Assessor’s Parcels restricted to other types of public uses determined by the City Council, provided that no such classification would reduce the sum of all Taxable Property to less than 22.47 Acres.
Notwithstanding the above, the City Council shall not classify an Assessor’s Parcel as Exempt Property if such classification would reduce the sum of all Taxable Property to less than 22.47 Acres. Assessor's Parcels which cannot be classified as Exempt Property because such classification would reduce the Acreage of all Taxable Property to less than 22.47 Acres will be classified as Provisional Undeveloped Property, and will be subject to Special Tax pursuant to Step Five in Section E.
G. PREPAYMENT OF SPECIAL TAX
The following additional definitions apply to this Section G:
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“CFD Facilities” means $10,500,000 expressed in 2023 dollars, which shall increase by the Construction Inflation Index on July 1, 2024, and on each July 1 thereafter, or such lower amount (i) determined by the City Council as sufficient to provide the facilities under the authorized bonding program for CFD No. 2023-1, or (ii) determined by the City Council concurrently with a covenant that it will not issue any more Bonds to finance additional facilities to be supported by Special Tax levied under this RMA.
“Construction Fund” means an account specifically identified in the Indenture or functionally equivalent to hold funds, which are available for expenditure to acquire or construct facilities eligible to be financed by CFD No. 2023-1.
“Construction Inflation Index” means the greater of (i) 2% and (ii) the annual percentage change in the Engineering News-Record Building Cost Index for the city of Los Angeles, measured as of the Calendar Year which ends in the previous Fiscal Year. In the event this index ceases to be published, the Construction Inflation Index shall be another index as determined by the City that is reasonably comparable to the Engineering News-Record Building Cost Index for the City of Los Angeles.
“Future Facilities Costs” means the CFD Facilities minus (i) amounts deposited in the Construction Fund, (ii) amounts deposited in any escrow accounts funded by the Outstanding Bonds and anticipated to fund public facilities costs, and (iii) public facility costs funded by interest earnings on the Construction Fund actually earned prior to the date of prepayment, but in no event shall such amount be less than zero.
“Outstanding Bonds” means all previously issued Bonds issued and secured by the levy of Special Tax which will remain outstanding after the first interest and/or principal payment date following the current Fiscal Year, excluding Bonds to be redeemed at a later date with the proceeds of prior prepayments of Special Tax.
1. Prepayment in Full
The Special Tax obligation may be prepaid and permanently satisfied for (i) Assessor’s Parcels of Developed Property, (ii) Assessor’s Parcels of Approved Property or Undeveloped Property for which a Building Permit has been issued, (iii) Assessor’s Parcels of Approved Property or Undeveloped Property for which a Building Permit has not been issued and (iv) Assessor’s Parcels of Provisional Undeveloped Property. The Special Tax obligation applicable to an Assessor’s Parcel may be fully prepaid and the obligation to pay the Special Tax for such Assessor’s Parcel permanently satisfied as described herein; provided that a prepayment may be made only if there are no delinquent Special Taxes with respect to such Assessor’s Parcel at the time of prepayment. An owner of an Assessor’s Parcel intending to prepay the Special Tax obligation for such Assessor’s Parcel shall provide the CFD Administrator with written notice of intent to prepay, and within 5 business days of receipt of such notice, the CFD Administrator shall notify such owner of the amount of the non-refundable deposit determined to cover the cost to be incurred by the CFD in calculating the Prepayment Amount (as defined below) for the Assessor’s Parcel. Within 15 days of receipt of such non-refundable deposit, the CFD Administrator shall notify such owner of the Prepayment Amount for the Assessor’s Parcel.
Prepayment must be made not less than 60 days prior to the redemption date for any Bonds to be redeemed with the proceeds of such prepaid Special Taxes. 349
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The Prepayment Amount shall be calculated as follows (some capitalized terms are defined below):
Bond Redemption Amount
plus Redemption Premium
plus Future Facilities Amount
plus Defeasance Amount
plus Administrative Fees and Expenses
less Reserve Fund Credit
Equals: Prepayment Amount
The Prepayment Amount shall be determined as of the proposed prepayment date as follows:
1. Confirm that no Special Tax delinquencies apply to such Assessor’s Parcel.
2. For an Assessor’s Parcel of Developed Property, compute the Maximum Special Tax for the Assessor’s Parcel. For an Assessor’s Parcel of Approved Property or Undeveloped Property for which a Building Permit has been issued, compute the Maximum Special Tax for the Assessor’s Parcel as though it was already designated as Developed Property, based upon the Building Permit which has been issued for the Assessor’s Parcel. For an Assessor’s Parcel of Approved Property or Undeveloped Property for which a Building Permit has not been issued, or Provisional Undeveloped Property, compute the Maximum Special Tax for the Assessor’s Parcel.
3. Divide the Maximum Special Tax derived pursuant to paragraph 2 by the total amount of Maximum Special Taxes that could be levied assuming build out of all Assessor’s Parcels of Taxable Property based on the applicable Maximum Special Tax for Assessor’s Parcels of Developed Property not including any Assessor’s Parcels for which the Special Tax obligation has been previously prepaid.
4. Multiply the quotient derived pursuant to paragraph 3 by the principal amount of the Outstanding Bonds to determine the amount of Outstanding Bonds to be redeemed with the Prepayment Amount (the “Bond Redemption Amount”).
5. Multiply the Bond Redemption Amount by the applicable redemption premium, if any, on the Outstanding Bonds to be redeemed (the “Redemption Premium”).
6. Determine the Future Facilities Costs.
7. Multiply the quotient derived pursuant to paragraph 3 by the amount determined pursuant to paragraph 6 to determine the amount of Future Facilities Costs for the Assessor’s Parcel (the “Future Facilities Amount”).
8. Determine the amount needed to pay interest on the Bond Redemption Amount from the first bond interest and/or principal payment date following the current Fiscal Year until the earliest redemption date for the Outstanding Bonds on which Bonds can be redeemed from Special Tax prepayments.
9. Determine the Special Taxes levied on the Assessor’s Parcel in the current Fiscal Year which have not yet been paid.
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10. Determine the amount the CFD Administrator reasonably expects to derive from the investment of the Bond Redemption Amount and the Redemption Premium from the date of prepayment until the redemption date for the Outstanding Bonds to be redeemed with the Prepayment Amount.
11. Add the amounts derived pursuant to paragraphs 8 and 9 and subtract the amount derived pursuant to paragraph 10 (the “Defeasance Amount”).
12. Verify the administrative fees and expenses of the CFD, the cost to invest the Prepayment Amount, the cost of redeeming the Outstanding Bonds, and the cost of recording notices to evidence the prepayment of the Special Tax obligation for the Assessor’s Parcel and the redemption of Outstanding Bonds (the “Administrative Fees and Expenses”).
13. The reserve fund credit (the “Reserve Fund Credit”) shall equal the lesser of: (a) the expected reduction in the reserve requirement (as defined in the Indenture), if any, associated with the redemption of Outstanding Bonds as a result of the prepayment, or (b) the amount derived by subtracting the new reserve requirement (as defined in the Indenture) in effect after the redemption of Outstanding Bonds as a result of the prepayment from the balance in the reserve fund on the prepayment date, but in no event shall such amount be less than zero.
14. The Prepayment Amount is equal to the sum of the Bond Redemption Amount, the Redemption Premium, the Future Facilities Amount, the Defeasance Amount and the Administrative Fees and Expenses, less the Reserve Fund Credit.
15. From the Prepayment Amount, the Bond Redemption Amount, the Redemption Premium, and Defeasance Amount shall be deposited into the appropriate fund as established under the Indenture and be used to redeem Outstanding Bonds or make debt service payments. The Future Facilities Amount shall be deposited into the Construction Fund. The Administrative Fees and Expenses shall be retained by the CFD.
The Prepayment Amount may be sufficient to redeem other than a $5,000 increment of Bonds.
In such event, the increment above $5,000 or an integral multiple thereof will be retained in the appropriate fund established under the Indenture to be used with the next redemption from other Special Tax prepayments of Outstanding Bonds or to make debt service payments.
As a result of the payment of the current Fiscal Year’s Special Tax levy as determined pursuant to paragraph 9 above, the CFD Administrator shall remove the current Fiscal Year’s Special Tax levy for the Assessor’s Parcel from the County tax roll. With respect to any Assessor’s Parcel for which the Special Tax obligation is prepaid, the City Council shall cause a suitable notice to be recorded in compliance with the Act, to indicate the prepayment of Special Tax obligation and the release of the Special Tax lien for the Assessor’s Parcel, and the obligation to pay the Special Tax for such Assessor’s Parcel shall cease.
Notwithstanding the foregoing, no Special Tax prepayment shall be allowed unless the amount of Maximum Special Tax that may be levied on all Assessor’s Parcels of Taxable Property after the proposed prepayment will be at least 1.1 times maximum annual debt service on the Bonds that will remain outstanding after the prepayment plus the estimated annual Administrative Expenses.
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Tenders of Bonds in prepayment of the Special Tax obligation may be accepted upon the terms and conditions established by the City Council pursuant to the Act. However, the use of Bond tenders shall only be allowed on a case-by-case basis as specifically approved by the City Council.
2. Prepayment in Part
The Special Tax obligation for an Assessor’s Parcel of Developed Property, Approved Property, Undeveloped Property, or Provisional Undeveloped Property may be partially prepaid. For purposes of determining the Partial Prepayment Amount, the provisions of Section G.1 shall be modified as provided by the following formula:
PP = ((PE – A) x F) + A
These terms have the following meaning:
PP = Partial Prepayment Amount
PE = the Prepayment Amount calculated according to Section G.1 F = the percent by which the owner of the Assessor’s Parcel(s) is partially prepaying the Special Tax obligation
A = the Administrative Fees and Expenses determined pursuant to Section G.1 The owner of an Assessor’s Parcel who desires to partially prepay the Special Tax obligation for the Assessor’s Parcel shall notify the CFD Administrator of (i) such owner’s intent to partially prepay the Special Tax obligation, (ii) the percentage of the Special Tax obligation such owner wishes to prepay, and (iii) the company or agency that will be acting as the escrow agent, if any.
Within 5 days of receipt of such notice, the CFD Administrator shall notify such property owner of the amount of the non-refundable deposit determined to cover the cost to be incurred by the CFD in calculating the Partial Prepayment Amount. Within 15 business days of receipt of such non-refundable deposit, the CFD Administrator shall notify such owner of the amount of the Partial Prepayment Amount for the Assessor’s Parcel. A Partial Prepayment Amount must be made not less than 60 days prior to the redemption date for the Outstanding Bonds to be redeemed with the proceeds of the Partial Prepayment Amount.
With respect to any Assessor’s Parcel for which the Special Tax obligation is partially prepaid, the CFD Administrator shall (i) distribute the Partial Prepayment Amount as provided in Paragraph 15 of Section G.1, and (ii) indicate in the records of the CFD that there has been a partial prepayment for the Assessor’s Parcel and that a portion of the Special Tax obligation equal to the remaining percentage (1.00 - F) of the applicable Special Tax will continue to be levied on the Assessor’s Parcel pursuant to Section E.
H. TERMINATION OF SPECIAL TAX
For each Fiscal Year that any Bonds are outstanding the Special Tax shall be levied on all Assessor’s Parcels subject to the Special Tax pursuant to Section E. The Special Tax shall cease not later than the 2065-2066 Fiscal Year, however, Special Taxes will cease to be levied in an earlier Fiscal Year if the CFD Administrator has determined (i) that all the required interest and principal payments on the CFD No. 2023-1 Bonds have been paid; (ii) all authorized facilities of CFD No. 2023-1 have been acquired and all reimbursements to the developer have been paid, (iii) no delinquent Special Taxes remain uncollected and (iv) all other obligations of CFD No. 2023-1 have been satisfied.
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I. MANNER OF COLLECTION
The Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes, provided, however, that CFD No. 2023-1 may collect Special Taxes at a different time or in a different manner if necessary to meet its financial obligations, and may covenant to foreclose and may actually foreclose on delinquent Assessor’s Parcels as permitted by the Act.
J. APPEALS OF SPECIAL TAXES
Any taxpayer may file a written appeal of the Special Taxes levied on his/her Assessor’s Parcel(s) with the CFD Administrator, provided that the appellant is current in his/her payments of Special Taxes. During pendency of an appeal, all Special Taxes previously levied must be paid on or before the payment date established when the levy was made. The appeal must specify the reasons why the appellant claims the Special Tax is in error. The CFD Administrator shall review the appeal, meet with the appellant if the CFD Administrator deems necessary, and advise the appellant of its determination. If the CFD Administrator agrees with the appellant, the CFD Administrator shall grant a credit to eliminate or reduce future Special Taxes on the appellant’s Assessor’s Parcel(s). No refunds of previously paid Special Taxes shall be made unless approved by the CFD Administrator.
The CFD Administrator shall interpret this RMA and make determinations relative to the annual levy and administration of the Special Taxes and any taxpayer who appeals, as herein specified.
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RESOLUTION NO. 2023-___
RESOLUTION OF INTENTION OF THE CITY COUNCIL OF THE
CITY OF THE CITY OF WILDOMAR TO INCUR BONDED
INDEBTEDNESS IN AN AMOUNT NOT TO EXCEED $15,000,000
WITHIN PROPOSED COMMUNITY FACILITIES DISTRICT NO.
2023-1 (AVALINO) OF THE CITY OF WILDOMAR
Whereas, the City Council of the City of Wildomar (the “City Council”) upon receipt of a petition as provided in Section 53318 of the Government Code of the State of California instituted proceedings to form Community Facilities District No. 2023-1 (Avalino) of the City of Wildomar (“Community Facilities District No. 2023-1” or the “District”) pursuant to the Mello-Roos Community Facilities Act of 1982 (the “Act”), as amended, pursuant to Resolution No. 2023-__ (the “Resolution of Intention to Establish”) adopted by the City Council on the date hereof to finance (1) the purchase, construction, modification, expansion, improvement and/or rehabilitation of public facilities identified in Attachment “A” hereto and incorporated herein by this reference, including all furnishings, equipment and supplies related thereto (collectively, the “Facilities”) and (2) the incidental expenses to be incurred in financing the Facilities and forming and administering the District (the “Incidental Expenses”); and, Whereas, the City Council estimates that the amount required to finance the Facilities and Incidental Expenses is approximately $15,000,000; and,
Whereas, in order to finance the Facilities and Incidental Expenses, the City Council intends to authorize the issuance of bonds in the maximum aggregate principal amount of $15,000,000, the repayment of which is to be secured by special taxes levied in accordance with Section 53328 of the Act on all property in the proposed Community Facilities District No. 2023-1, other than those properties exempted from taxation in the rate and method of apportionment set forth in Attachment “C” to the Resolution of Intention to Establish.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF WILDOMAR DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS:
Section 1. The above recitals are true and correct.
Section 2. It is necessary to incur bonded indebtedness within the boundaries of proposed Community Facilities District No. 2023-1 in an amount not to exceed $15,000,000 to finance the costs of the Facilities and Incidental Expenses, as permitted by the Act.
Section 3. The indebtedness will be incurred for the purpose of financing the costs of the Facilities and the Incidental Expenses, including, but not limited to, the funding of reserve funds for the bonds, the financing of costs associated with the issuance of the bonds and all other costs and expenses necessary to finance the Facilities which are permitted to be financed pursuant to the Act.
Section 4. It is the intent of the City Council to authorize the sale of bonds in one or more series, in the maximum aggregate principal amount of $15,000,000 and at a maximum interest rate not in excess of 12 percent per annum, or a higher rate not in excess of the maximum rate permitted by law at the time that the bonds are issued. The term of the bonds of each series shall be determined pursuant to a resolution of this City Council acting in its capacity as the 358
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legislative body of the District authorizing the issuance of the bonds of such series, but such term shall in no event exceed 35 years from the date of issuance of the bonds of such series, or such longer term as is then permitted by law.
Section 5. A public hearing (the “Hearing”) on the proposed issuance of bonded indebtedness shall be held at 6:00 p.m. or as soon thereafter as practicable, on September 13, 2023, at the City Council Chambers, 23873 Clinton Keith Road, Suite 106, Wildomar, California 92595.
Section 6. At the time and place set forth in this Resolution for the Hearing, any interested persons, including all persons owning land or registered to vote within proposed Community Facilities District No. 2023-1, may appear and be heard.
Section 7. The City Clerk is hereby directed to publish a notice (the “Notice”) of the Hearing pursuant to Section 6061 of the Government Code in a newspaper of general circulation published in the area of the proposed Community Facilities District No. 2023-1. Such publication shall be completed at least seven days prior to the date of the Hearing. The City Clerk is further directed to mail a copy of the Notice to each of the landowners within the boundaries of proposed Community Facilities District No. 2023-1 at least 15 days prior to the Hearing.
PASSED, APPROVED AND ADOPTED this 9th day of August, 2023:
Joseph Morabito
Mayor
APPROVED AS TO FORM: ATTEST:
Thomas D. Jex Janet Morales
City Attorney City Clerk
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STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.
CITY OF WILDOMAR )
I, Janet Morales, City Clerk of the City of Wildomar, California, do hereby certify that Resolution No. ____________ was adopted by the City Council of the City of Wildomar, California, at the Regular meeting of August 9, 2023 and that the same was adopted by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
________________________________
Janet Morales
City Clerk
City of Wildomar
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ATTACHMENT A
Types of Facilities
to Be Financed by Community
Facilities District No. 2023-1 (Avalino) of the City of Wildomar The proposed types of public facilities and expenses to be financed by the District include:
The construction, purchase, modification, expansion, rehabilitation and/or improvement of (i) drainage, library, park, police, fire, roadway, traffic, administration and community center facilities, and other public facilities of the City, including the foregoing public facilities which are included in the City’s fee programs with respect to such facilities and authorized to be financed under the Act (the “City Facilities”), and (ii) water and sewer facilities including the acquisition of capacity in the sewer system and/or water system of the Elsinore Valley Municipal Water District which are included in Elsinore Valley Municipal Water District’s water and sewer capacity and connection fee programs (the “Water District Facilities” and together, with the City Facilities, the “Facilities”), and all appurtenances and appurtenant work in connection with the foregoing Facilities, including the cost of engineering, planning, designing, materials testing, coordination, construction staking, construction management and supervision for such Facilities, and to finance the incidental expenses to be incurred, including:
a. The cost of engineering, planning and designing the Facilities; b. All costs, including costs of the property owner petitioning to form the District, associated with the creation of the District, the issuance of the bonds, the determination of the amount of special taxes to be levied and costs otherwise incurred in order to carry out the authorized purposes of the District; and
c. Any other expenses incidental to the construction, acquisition, modification, rehabilitation, completion and inspection of the Facilities.
Capitalized terms used and not defined herein shall have the meaning set forth in the Rate and Method of Apportionment of Special Taxes for the District. 361
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REIMBURSEMENT AGREEMENT
RELATING TO PROPOSED
COMMUNITY FACILITIES DISTRICT NO. 2023-1
(AVALINO) OF THE CITY OF WILDOMAR
THIS REIMBURSEMENT AGREEMENT RELATING TO PROPOSED COMMUNITY FACILITIES DISTRICT NO. 2023-1 (AVALINO) OF THE CITY OF WILDOMAR (the “Agreement”) dated as of August 9, 2023 is entered into by and between the City of Wildomar, a general law city organized and existing under the laws and constitution of the State of California (the “City”), and D.R. HORTON LOS ANGELES HOLDING COMPANY, INC., a California corporation (the “Developer”).
R E C I T A L S :
A. The Developer is developing approximately 41.76 acres of land described in Exhibit A attached hereto (the “Property”) for which the Developer desires to include within proposed Community Facilities District No. 2023-1 (Avalino) of the City of Wildomar (the “District”) to be established by the City pursuant to the Mello-Roos Community Facilities Act of 1982 (Government Code Section 53311 et seq.) (the “Act”).
B. The City and the Developer are desirous of entering into this Agreement in order to provide a mechanism by which the Developer may advance certain costs related to the cost of formation of the District, and to provide that such District, if formed, will reimburse the Developer for the amounts advanced hereunder.
AGREEMENT
NOW, THEREFORE, in consideration of the mutual promises and covenants set forth herein, the parties hereto agree as follows:
1. Recitals. Each of the above recitals is incorporated herein and is true and correct.
2. Potential Formation of the District and Issuance of Bonds. (a) At the request of the Developer, the City will undertake to form the District. The City will retain, at the Developer’s expense, the necessary consultants to analyze the proposed formation of the District and issuance of bonds, including a special tax consultant, municipal advisor, bond counsel, market absorption consultant, appraiser and other consultants deemed necessary by the City. In addition, City staff time spent in connection with the formation of the District and the issuance of bonds shall be at Developer’s expense. (b) In order to begin the process of analyzing the potential formation of the District, the Developer has advanced to the City a sum totaling $60,000. From time to time, the Developer shall make additional advances to the City within 15 days following receipt from the City of a request for an additional advance to cover the costs of forming the District and/or issuing bonds. In the event the Developer does not deliver the requested amount to the City within such 15-day period, the City will have no obligation to proceed with the analysis or bond issue unless and until such additional advance is received. The Developer shall have the right to notify the City at any time, in writing, of its intention to abandon the formation of the District or 362
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the issuance of bonds. Upon receipt of such notice, the City shall instruct its consultants to cease work as soon as practicable. The Developer shall be responsible to pay all costs and expenses incurred by the City or any City consultant or advisor prior to the date on which the City’s consultants are notified of the Developer’s notice of abandonment. Notwithstanding a decision of the Developer to abandon the formation of the District or the issuance of bonds, the City may, in its sole discretion, elect to proceed with formation of the District and/or the issuance of bonds with funds other than those of the Developer; provided, however, that, in executing this Agreement, the Developer shall not be deemed to have waived their right to object to the formation of the District or the issuance of bonds.
(c) The City will provide to the Developer on request a summary of how the advances have been spent and the unexpended balance remaining. The amounts advanced by the Developer will be reimbursable to the Developer, without interest, from the proceeds of bonds issued by the District when and if the District is formed. In the event that bonds are not issued to provide a source of reimbursement to the Developer, the City shall have no liability to the Developer to reimburse them for any amounts previously advanced by the Developer and expended by the City in accordance with this Agreement.
3. Reimbursement Procedure. Upon the abandonment of the District formation proceedings, the City shall return any funds which have been advanced by the Developer which are not expended on the purposes set forth in Section 2 above. Such returned funds shall be without interest.
4. Abandonment of CFD Formation Process. The Developer understands that any formation of the District shall be in the sole discretion of the City. No provision of this Agreement shall be construed as a promise, warranty or agreement by the City to form the District or to issue any bonds. The City shall have no liability to Developer for its decision not to form the District or issue bonds.
5. Indemnification and Hold Harmless. The Developer hereby assumes the defense of, and indemnifies and saves harmless, jointly and severally, the City and each of its officers, directors, employees and agents, from and against all actions, damages, claims, losses or expenses of every type and description to which they may be subjected or put, by reason of, or arising out of any acts or omissions taken by the Developer or any of the Developer’s officers, employees, contractors and agents with respect to the formation of the District.
6. Notices. Any notice to be provided pursuant to this Agreement shall be delivered to the following addresses:
Developer D.R. Horton Los Angeles Holding Company, Inc. 2280 Wardlow Circle, Suite 100
Corona, California 92878
Attention: Dean Pernicone
Telephone: (951) 739-5494
City: City of Wildomar
23873 Clinton Keith Road
Wildomar, California 92595
Attn: City Manager
Telephone: (951) 677-7751
Email: [email protected]
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With a copy to: Stradling Yocca Carlson & Rauth
660 Newport Center Drive, Suite 1600
Newport Beach, CA 92660
Attention: Brian Forbath, Esq.
Telephone: (949) 725-4193
Email: [email protected]
Each party may change its address for delivery of notice by delivering written notice of such change of address to the other party.
7. Assignment. The Developer may assign its interest in this Agreement at any time provided, however, that the Developer shall provide written evidence of any assignment to the City.
8. Severability. If any part of this Agreement is held to be illegal or unenforceable by a court of competent jurisdiction, the remainder of this Agreement shall be given effect to the fullest extent permitted by law.
9. Entire Agreement. This Agreement contains the entire agreement between the parties with respect to the matters provided for herein.
10. Amendments. This Agreement may be amended or modified only by written instrument signed by all parties.
11. Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original.
12. Governing Law. This Agreement and any dispute arising hereunder shall be governed by and interpreted in accordance with the laws of the State of California.
13. No Third Party Beneficiaries. No person or entity shall be deemed to be a third party beneficiary hereof, and nothing in this Agreement (either express or implied) is intended to confer upon any person or entity, other than the City and the Developer, any rights, remedies, obligations or liabilities under or by reason of this Agreement.
14. Singular and Plural; Gender. As used herein, the singular of any word includes the plural, and terms in the masculine gender shall include the feminine.
15. Termination. This Agreement shall terminate and be of no further force and effect on December 31, 2028 unless expressly amended by the parties or terminated earlier by written notice from the Developer; provided, however, that the Developer’s obligations under Section 5 shall survive the termination and the City’s obligation to provide reimbursement in accordance with Section 3 for expenses incurred prior to the termination date shall also survive termination. 364
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IN WITNESS WHEREOF, the parties have executed this Agreement on the day and year first above written.
CITY OF WILDOMAR, a political subdivision of the
State of California
By:
Daniel A. York, City Manager
ATTEST:
By:
Janet Morales, City Clerk
D.R. HORTON LOS ANGELES HOLDING
COMPANY, INC., a California corporation
By:____________
Name:
Title:
APPROVED AS TO FORM:
CITY ATTORNEY
By:
Thomas D. Jex
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EXHIBIT A
DESCRIPTION OF PROPERTY
Real property in the City of Wildomar, County of Riverside, State of California, described as follows:
Fiscal Year 2022-23 Assessor Parcel Nos.:
380-160-017
380-160-018
380-210-003
380-210-004
380-210-005
380-210-008
380-210-016
366
PALOMAR
ST
WASHINGTON
AVE
OXFORD
DR
MADISONAVE
VIA
ALISOL
ELIZABETH
LN
CALLE DEL OSO ORO
CLINTON
KEITH
RD
RANCHO MIRLO RD
PRIELIPP RD
JEFFERSON
AVE
NUT M EG
ST
MONTANYA
PL
GRAND
AVE
§¨¦
15 ^_
BAXTER RD
ORANGE
ST
CENTRAL STPALOMAR
ST
CLAREMONTST
CLINTON
KEIT H R D
GRAND
AVE
N UTMEG
ST
UNION
ST
GROVE ST
PRIELIPP RDWYM
AN RD
ORCHARDST
§¨¦15
CFD NO. 2023-1 (AVALINO)
PROJECT MAP
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CITY OF WILDOMAR
CC - REGULAR MEETING
CONSENT CALENDAR
Agenda Staff Report # 1.15
Meeting Date: August
9, 2023
SUBJECT:
Tres Lagos Affordability Covenant and Subordination
Agreement
SUBMITTED BY:
Thomas D Jex
ACTION:
Approve and authorize the City Manager to sign the Affordability Covenant and Subordination Agreements regarding the Tres Lagos affordable housing project in substantially the same form as included in the agenda packet and authorize the City Manager to make modest adjustments as necessary.
DISCUSSION:
Affordability Covenant
Phase I of the Tres Lagos affordable housing project (Palm Communities), located at 23345 and 23365 Catt Road, is intended to be developed with 89 rental multi-family residential units in which 88 units, including 40 one-bedroom units, 26 two-bedroom units, and 22 three- bedroom units will be restricted for occupancy by Eligible Households at Affordable Rents.
The Project was processed pursuant to SB 35 (Government Code § 65913.4), which requires a land use restriction or covenant to be recorded prior to the first building permit for the Project ensuring that the low-income units required by SB 35 remain available at affordable rent for 55 years.
According to California Government Code Section 65915 et seq. (“Density Bonus Statute”) and Chapter 17.290 of the City of Wildomar Municipal Code (“Density Bonus Ordinance”), the developer applied for and the City approved a density bonus and certain incentives and concessions for the Project pursuant to subsection (b)(1)(G) of the Density Bonus Statute, which requires all units in the Project, except for manager’s unit(s), to be restricted to Low- Income Households, except that up to 20% may be for Moderate-Income Households.
This Affordability Covenant is intended to satisfy the affordability requirements set forth in SB 35, the Density Bonus Ordinance, and the Density Bonus Statute, and to regulate and restrict the occupancy and rents of the Project’s Restricted Units for the benefit of the Project 368
occupants. The covenants set forth in the Affordability Covenant will run with the land.
Subordination Agreements
The Housing Authority of the County of Riverside has or will make a purchase money loan to the Developer in the amount of $600,000 to assist in financing the development of the Project.
Repayment of the loan is secured by a Purchase Money Deed of Trust.
Citibank has or will make a loan to the Developer in the amount of $29,010,552 to assist in financing the development of the Project. In addition, Citibank has or will make a loan to Developer in the amount of $15,900,000 to further assist in financing the development of the Project. Repayment of these loans are secured by Deeds of Trust.
In accordance with the Density Bonus Statute and SB 35, the Affordability Covenant is
required to be recorded against the Property senior to all deeds of trust and similar encumbrances. Accordingly, the Housing Authority of the County of Riverside and Citibank have agreed to subordinate their liens of the Deeds of Trust to the Affordability Covenant.
ATTACHMENTS:
1. Density Bonus Affordability Covenant
2. Subordination to Density Bonus Agreement Citibank
3. Subordination to Density Bonus Agreement County DOT
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RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:
City of Wildomar
23873 Clinton Keith Road, Suite 110
Wildomar, CA 92595
Attention: City Clerk
EXEMPT FROM RECORDING FEES PER
GOVERNMENT CODE §§6103, 27383
Space above this line for Recorder’s use.
APN: 0380-100-021
AFFORDABLE HOUSING AGREEMENT
AND
DECLARATION OF RESTRICTIVE COVENANTS
by and between
THE CITY OF WILDOMAR
and
WILDOMAR TRES LAGOS PARTNERS LP,
a California limited partnership
(SB 35 and Density Bonus Below Market-Rate Rental Units) 370
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2 This Affordable Housing Agreement and Declaration of Restrictive Covenants (this “Agreement”) is entered into effective as of July ____, 2023 (“Effective Date”) by and between the City of Wildomar, a municipal corporation (“City”) and Wildomar Tres Lagos Partners LP, a California limited partnership (“Owner”). The City and the Owner are collectively referred to herein as the “Parties.”
RECITALS
The following recitals are an integral part of this Agreement and are binding on the Parties. Capitalized terms used in these Recitals and elsewhere in this Agreement shall have the meanings ascribed to such terms as set forth in Section 1.2 below.
A. Owner is the owner of the real property located in the City of Wildomar, Riverside County, California, at 23345 and 23365 Catt Road, known as Riverside County Assessor’s Parcel No. 0380-100-021, and more particularly described in Exhibit A attached hereto (the “Property”).
B. Owner intends to develop an eighty-nine 89- unit multi-family residential rental development (the “Project”) on the Property in which eighty eight (88) dwelling units, including forty (40) one-bedroom units, twenty-six (26) two-bedroom units, and twenty-two (22) three- bedroom units will be restricted for occupancy by Eligible Households at Affordable Rents as more particularly set forth in this Agreement.
C. The Project was processed pursuant to SB 35 (Government Code § 65913.4), which requires a land use restriction or covenant to be recorded prior to the first building permit for the Project ensuring that the low-income units required by SB 35 remain available at affordable rent for fifty-five years.
D. Pursuant to California Government Code Section 65915 et seq. (the “Density Bonus Statute”) and Chapter 17.290 of the City of Wildomar Municipal Code (the “Density Bonus Ordinance”) Owner applied for and the City approved a density bonus and certain incentives and concessions for the Project pursuant to subsection (b)(1)(G) of the Density Bonus Statute, which requires all units in the Project, except for manager’s unit(s), to be restricted to Low-Income Households except that up to 20% may be for Moderate-Income Households.
Owner is required to enter into and record this Agreement against the Property to ensure the continued affordability of the units required by the Density Bonus Statute and Density Bonus Ordinance for fifty-five years.
E. This Agreement is intended to satisfy the affordability requirements set forth in SB 35, the Density Bonus Ordinance, and the Density Bonus Statute, and to regulate and restrict the occupancy and rents of the Project’s Restricted Units for the benefit of the Project occupants.
The Parties intend the covenants set forth in this Agreement to run with the land and to be binding upon Owner and Owner’s successors and assigns for the full term of this Agreement. 371
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3 NOW THEREFORE, in consideration of the foregoing, and other valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereby agree as follows.
1. Incorporation of Recitals; Definitions.
1.1 Incorporation of Recitals. The Parties acknowledge the truth of the foregoing Recitals which are hereby incorporated into this Agreement.
1.2 Definitions. The following terms have the meanings set forth in this Section wherever used in this Agreement or the attached exhibits. “Actual Household Size" means the actual number of persons in the applicable household.
“Additional Low-Income Density Bonus Units” is defined in Section 2.1. "Affordable Rent" is defined in Section 2.1.
"Area Median Income" or "AMI" is defined in Section 2.1. “Assumed Household Size” means the number of bedrooms in a dwelling unit plus one, consistent with Section 50052.5(h) of the California Health and Safety Code, subject to the application of federal rules and regulations applicable to Project financing sources (if any) (e.g., a household of two persons in the case of a one-bedroom unit, a household of three persons in the case of a two-bedroom unit, and a household of four persons in the case of a three-bedroom unit).
“City” means the City of Wildomar, California
“City’s Authorized Representative” means the City Manager of the City of Wildomar. “Claims” is defined in Section 10.
“Conditions of Approval” means the terms and conditions of all approvals, entitlements and permits that the City has granted or issued as of the date hereof or may hereafter grant or issue in connection with development of the Project, including without limitation, any mitigation measures imposed in connection with environmental review of the Project and all conditions of approval imposed in connection with any entitlements, approvals or permits. “CTCAC” means the California Tax Credit Allocation Committee. “Density Bonus Ordinance” means Chapter 17.290 of the City of Wildomar Municipal Code.
“Density Bonus Statute” means California Government Code Section 65915 et. seq. “Eligible Household” means a household for which Gross Annual Household Income 372
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4 upon initial occupancy does not exceed the maximum income level for a Restricted Unit as specified in Section 2.1.
“Gross Annual Household Income” is defined in Section 2.1. “Indemnitees” is defined in Section 10.
“Low-Income Household” means a household for which Gross Annual Household Income upon initial occupancy does not exceed eighty percent (80%) of Area Median Income as adjusted for Actual Household Size.
“Moderate-Income Density Bonus Units” is defined in Section 2.1. “Moderate-Income Household” means a household for which Gross Annual Household Income upon initial occupancy does not exceed one hundred twenty percent (120%) of Area Median Income as adjusted for Actual Household Size.
“Official Records” means the Official Records of the Riverside County Recorder. “Owner” is defined in the preamble to this Agreement. Each reference herein to the “Owner” shall mean the Owner and the Owner’s successors and assigns. “Project” is defined in Recital B.
“Property” is defined in Recital A.
"Restricted Unit" means a dwelling unit that is reserved for occupancy at an Affordable Rent by Eligible Households of specified household income levels as set forth in Section 2.1. “SB 35” means California Government Code Section 65913.4 (Chapter 366, Statutes of 2017, as subsequently amended).
“SB 35 Units” is defined in Section 3.
2. Use and Affordability Restrictions. Owner hereby covenants and agrees, for itself and its successors and assigns, that throughout the term of this Agreement (as defined in Section 4.1), the eighty eight (88) residential units described in Section 2.1 shall be Restricted Units that shall be used solely as rental housing in compliance with the occupancy and affordability requirements set forth in this Agreement. Owner represents and warrants that it has not entered into any agreement that would restrict or compromise its ability to comply with the occupancy and affordability restrictions set forth in this Agreement, and Owner covenants that it shall not enter into any agreement that is inconsistent with such restrictions without the express written consent of City.
2.1 Affordability Requirements. Throughout the Term of this Agreement (as defined in Section 4.1): (i) not less than forty-five (45) residential units in the Project (i.e., fifty percent (50%) of the total number of residential units in the Project) (the “SB 35 Units”) shall be restricted for occupancy at Affordable Rents by households whose Gross Annual Household 373
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5 Income at initial occupancy is no greater than eighty percent (80%) of AMI as determined pursuant to the applicable definitions below, (ii) not less than twenty-six (26) additional residential units in the Project (the “Additional Low-Income Density Bonus Units”) shall be restricted for occupancy at Affordable Rents by households whose Gross Annual Household Income at initial occupancy is no greater than eighty percent (80%) of AMI as determined pursuant to the applicable definitions below; and (iii) not less than seventeen (17) additional residential units in the Project (the “Moderate-Income Density Bonus Units” shall be restricted for occupancy at Affordable Rents by households whose Gross Annual Household Income at initial occupancy is no greater than one hundred twenty percent (120%) of AMI as determined pursuant to the applicable definitions below. The SB 35 Units include 18 density bonus units subject to the requirements of clause I of California Government Code Section 65915(c)(1)(B)(ii). Area Median Income, Affordable Rent, and Gross Annual Household Income shall be determined for the SB 35 Units, the Additional Low-Income Density Bonus Units and the Moderate-Income Density Bonus Units in accordance with the following definitions:
“Area Median Income” or “AMI” means the following: (i) pursuant to California Government Code Section 65913.4(k) and clause I of California Government Code Section 65915(c)(1)(B)(ii), for the SB 35 Units and the Moderate-Income Density Bonus Units, the median income for Riverside County, California, adjusted for Actual Household Size, as determined by the U.S. Department of Housing and Urban Development pursuant to Section 8 of the United States Housing Act of 1937 and as published from time to time by the State of California Department of Housing and Community Development in Section 6932 of Title 25 of the California Code of Regulations or successor provision published pursuant to California Health and Safety Code Section 50093(c), and (ii) pursuant to clause II of California Government Code Section 65915(c)(1)(B)(ii), for the Additional Low-Income Density Bonus Units, the median income for Riverside County, California, adjusted for Actual Household Size, as determined by CTCAC regulations. "Affordable Rent" means the following: (i) pursuant to California Government Code Section 65913.4(k)(2)(A), clause I of California Government Code Section 65915(c)(1)(B)(ii), and Health and Safety Code Section 50053(b)(3), for the SB 35 Units, a monthly rent that does not exceed one-twelfth (1/12) of thirty percent (30%) of sixty percent (60%) of Area Median Income, Adjusted for Family Size Appropriate for the Unit, less a utility allowance and other fees and charges required to be paid by tenants of the Project on a non-optional basis, (ii) pursuant to clause I of California Government Code Section 65915(c)(1)(B)(ii) and Health and Safety Code Section 50053(b)(4), for the Moderate-Income Density Bonus Units, a monthly rent that does not exceed one-twelfth (1/12) of thirty percent (30%) of one hundred ten percent (110%) of Area Median Income, Adjusted for Family Size Appropriate for the Unit, less a utility allowance and other fees and charges required to be paid by tenants of the Project on a non- optional basis, and (iii) pursuant to clause II of California Government Code Section 65915(c)(1)(B)(ii), for the Additional Low-Income Density Bonus Units. a monthly rent that does not exceed the maximum rent levels for lower-income households as determined by CTCAC regulations.
“Gross Annual Household Income” means the following: (i) pursuant to clause I of California Government Code Section 65915(c)(1)(B)(ii) and California Government Code 374
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6 Section 65913.4(k), for the SB 35 Units and the Moderate-Income Density Bonus Units, the applicable household’s total gross income as determined in accordance with Section 6914 of Title 25 of the California Code of Regulations as such section may be revised from time to time, and (ii) pursuant to clause II of California Government Code Section 65915(c)(1)(B)(ii), for the Additional Low-Income Density Bonus Units, the applicable household’s total gross income as determined in accordance with Section 42(g)(2) of the Internal Revenue Code of 1986, as amended, and applicable federal and CTCAC regulations.
2.2 Rents for Restricted Units. Rents for the SB 35 Units, the Additional Low- Income Density Bonus Units and the Moderate-Income Density Bonus Units shall be limited to Affordable Rents for households of the applicable income limit in accordance with Section 2.1.
In the event that recertification of tenant incomes indicates that the number of Restricted Units actually occupied by Eligible Households falls below the number reserved for each income group as specified in this Section 2.1, Owner shall rectify the condition by renting the next available dwelling unit(s) in the Project to Eligible Household(s) until the required income mix is achieved.
2.3 Location; Amenities.
The moderate-income units shall not be concentrated in one location within the Project, nor clustered on one floor or within one area within any particular building comprising the Project, but instead shall be dispersed throughout the Project. All Restricted Units shall be comparable in their appearance, materials, and exterior and interior finishes. Residents of Restricted Units shall have access to all Project amenities and recreational facilities.
2.4 No Condominium Conversion; Occupancy as Principal Residence; No Short-term Rentals. Owner shall not convert the Restricted Units to condominium or cooperative ownership during the term of this Agreement. The Restricted Units must be occupied as the principal residence of the tenant. The rental agreement or lease must provide that the tenant acknowledges and agrees that the Restricted Unit must be occupied as the household’s principal residence, and that the unit may not be subleased or made available as a short-term rental.
2.5 Non-Discrimination; Compliance with Fair Housing Laws.
2.5.1 Fair Housing. Owner shall comply with all applicable state and federal fair housing laws in the marketing and rental of all residential units in the Project. Owner shall accept as tenants, on the same basis as all other prospective tenants, persons who are recipients of federal certificates or vouchers for rent subsidies pursuant to the existing Section 8 program or any successor thereto.
2.5.2 Non-Discrimination. Owner shall not restrict the rental, sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the Property, or any portion thereof, on the basis of race, color, religion, creed, sex, sexual orientation, disability, marital status, ancestry, or national origin of any person. Owner covenants for itself and all persons claiming under or through it, and this Agreement is made and accepted upon and subject to the condition that there shall be no discrimination against or segregation of any person or group of persons on 375
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7 account of any basis listed in subdivision (a) or (d) of Section 12955 of the Government Code, as those bases are defined in Sections 12926, 12926.1, subdivision (m) and paragraph (1) of subdivision (p) of Section 12955, and Section 12955.2 of the Government Code, in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the Property or part thereof, nor shall Owner or any person claiming under or through Owner establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees in, of, or for the Property or part thereof. Owner shall include such provision in all deeds, leases, contracts and other instruments executed by Owner, and shall enforce the same diligently and in good faith.
3. Reporting Requirements; Access to Information; Inspections.
3.1 Tenant Certification. Owner or Owner’s authorized agent shall obtain from each household prior to initial occupancy of each Restricted Unit, and on every anniversary thereafter, a written certificate containing all of the following in such format and with such supporting documentation as City may reasonably require:
(a) The identity of each household member; and
(b) The total Gross Annual Household Income.
Alternatively, Owner may satisfy this requirement by delivering copies of the CTCAC Tenant Income Certification and CTCAC Project Status Report which will be delivered annually to CTCAC. Owner shall retain such certificates for not less than five (5) years, and upon City’s request, shall provide copies of such certificates to City and make the originals available for City inspection.
3.2 Annual Report; Inspections. Following completion of construction of the Restricted Units, by not later than April 30 of each year during the term of this Agreement, Owner shall submit an annual report (“Annual Report”) to the City in form satisfactory to City, together with a certification that the Project is in compliance with the requirements of this Agreement. The Annual Report shall, at a minimum, include the following information for each Restricted Unit: (i) unit number; (ii) number of bedrooms; (iii) current rent and other charges; (iv) dates of any vacancies during the previous year; (v) number of people residing in the unit; (vi) total Gross Annual Household Income; (vii) documentation of source of household income, (viii) lease commencement and termination dates, and (ix) initial move-in date.
Owner shall include with the Annual Report, an income recertification for each household, documentation verifying tenant eligibility, and such additional information as City may reasonably request from time to time in order to demonstrate compliance with this Agreement. The Annual Report shall conform to the format requested by City. Alternatively, Owner may satisfy this requirement by delivering copies of the CTCAC Tenant Income Certification and CTCAC Project Status Report which will be delivered annually to CTCAC.
3.3. Maintenance of Records.
(1) Owner shall maintain tenant leases, income certifications, and other 376
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8 documents related to the leasing of the Restricted Units for a period of five (5) years after the final date of occupancy by the tenant.
(2) Records must be kept accurate and up-to-date. City shall notify Owner of any records it deems insufficient. Owner shall have fifteen (15) calendar days from such notice to correct any specified deficiency in the records, or, if more than fifteen (15) days shall be reasonably necessary to correct the deficiency, Owner shall begin to correct the deficiency within fifteen (15) days and diligently pursue the correction of the deficiency as soon as reasonably possible.
3.4 Access to Records; Inspections.
(1) Owner shall provide City and its authorized agents and representatives access during normal business hours to any books, documents, papers and records relating to the Restricted Units for the purpose of making audits, examinations, excerpts and transcriptions. (2) With 48-hours' notice, during normal business hours and as often as may be deemed necessary, City and its authorized agents and representatives shall be permitted access to and the right to examine the Restricted Units and to interview tenants of the Restricted Units and employees of the Project, for the purpose of verifying compliance with applicable regulations and compliance with the conditions of this Agreement.
4. Term of Agreement.
4.1 Term of Restrictions. This Agreement shall remain in effect through the fifty- fifth (55th) anniversary of the date upon which City issues a final certificate of occupancy or equivalent for the Project upon completion of construction. If such date cannot be ascertained, the term of this Agreement shall end on the fifty-seventh (57th) anniversary of the Effective Date of this Agreement.
4.2 Effectiveness Succeeds Conveyance of Property. This Agreement shall remain effective and fully binding for the full term hereof, regardless of any sale, assignment, transfer, or conveyance of the Property or the Project or any part thereof or interest therein.
4.3 Recordation. This Agreement shall be recorded in the Official Records as a condition precedent to City’s issuance of building permits for the Project.
4.4 Reconveyance. Upon the termination of this Agreement, the Parties agree to execute and record appropriate instruments to release and discharge this Agreement; provided, however, the execution and recordation of such instruments shall not be necessary or a prerequisite to the termination of this Agreement upon the expiration of the term.
5. Binding Upon Successors; Covenants to Run with the Land. Owner hereby subjects its interest in the Property and the Restricted Units to the covenants and restrictions set forth in this Agreement. The City and Owner hereby declare their express intent that the covenants and restrictions set forth herein shall be deemed covenants running with the land and shall be binding upon and inure to the benefit of the heirs, administrators, executors, successors in interest, 377
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9 transferees, and assigns of Owner and City, regardless of any sale, assignment, conveyance or transfer of the Property, the Project or any part thereof or interest therein. Any successor-in- interest to Owner, including without limitation any purchaser, transferee or lessee of the Property or the Project or part thereof (other than the tenants of the individual dwelling units within the Project) shall be subject to all of the duties and obligations imposed hereby for the full term of this Agreement. Each and every contract, deed, ground lease or other instrument affecting or conveying the Property or the Project or any part thereof, shall conclusively be held to have been executed, delivered and accepted subject to the covenants, restrictions, duties and obligations set forth herein, regardless of whether such covenants, restrictions, duties and obligations are set forth in such contract, deed, ground lease or other instrument. If any such contract, deed, ground lease or other instrument has been executed prior to the date hereof, Owner hereby covenants to obtain and deliver to City an instrument in recordable form signed by the parties to such contract, deed, ground lease or other instrument pursuant to which such parties acknowledge and accept this Agreement and agree to be bound hereby. Owner agrees for itself and for its successors that in the event that a court of competent jurisdiction determines that the covenants herein do not run with the land, such covenants shall be enforced as equitable servitudes against the Property and the Project in favor of City.
6. Property Management; Repair and Maintenance; Marketing.
6.1 Management Responsibilities. Owner shall be responsible for all management functions with respect to the Property and the Project, including without limitation the selection of tenants, certification and recertification of household income and eligibility, evictions, collection of rents and deposits, maintenance, landscaping, routine and extraordinary repairs, replacement of capital items, and security. City shall have no responsibility for management or maintenance of the Property or the Project.
6.2 Management Entity. Owner may delegate management of the Restricted Units to a management company or other organization that has experience in the management of affordable rental units, including without limitation, experience in screening and qualifying applicants for income-restricted units. The contracting of management services to a management entity shall not relieve Owner of its primary responsibility for proper performance of management duties.
6.3 Repair and Maintenance. Throughout the term of this Agreement, Owner shall at its own expense, maintain the Property and the Project in good physical condition, in good repair, and in decent, safe, sanitary, habitable and tenantable living conditions in conformity with all applicable state, federal, and local laws, ordinances, codes, and regulations. Without limiting the foregoing, Owner agrees to maintain the Project and the Property (including without limitation, the residential units, common areas, meeting rooms, landscaping, driveways, parking areas and walkways) in a condition free of all waste, nuisance, debris, unmaintained landscaping, graffiti, disrepair, abandoned vehicles/appliances, and illegal activity, and shall take all commercially reasonable steps to prevent the same from occurring on the Property or at the Project. Owner shall prevent and/or rectify any physical deterioration of the Property and the Project and shall make all repairs, renewals and replacements necessary to keep the Property and the improvements located thereon in good condition and repair, reasonable wear and tear excepted.
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10 6.3.1 Additional Requirements. All construction work and professional services for the Project shall be performed by persons or entities licensed or otherwise authorized to perform the applicable work or service in the State of California and shall have a current City of Wildomar business registration if required under local law. Owner shall diligently work to resolve complaints related to noise, parking, litter or other neighborhood concerns.
6.4 City’s Right to Perform Maintenance. In the event that Owner breaches any of the covenants contained in Section 6.3 or Section 6.3.1, and such default continues for a period of ten (10) days after written notice from City (with respect to graffiti, debris, and waste material) or thirty (30) days after written notice from City (with respect to landscaping, building improvements and general maintenance), then City, in addition to any other remedy it may have under this Agreement or at law or in equity, shall have the right, but not the obligation, to enter upon the Property and perform all acts and work necessary to protect, maintain, and preserve the improvements and the landscaped areas on the Property. All costs expended by City in connection with the foregoing, shall be paid by Owner to City upon demand. All such sums remaining unpaid thirty (30) days following delivery of City’s invoice therefor shall bear interest at the lesser of 10% per annum or the highest rate permitted by applicable law. City shall have a lien against the Property for the amount of such unpaid sums and shall have the right to record a Notice of Claim of Lien against the Property.
6.7 Fees, Taxes, and Other Levies. Owner shall be responsible for payment of all fees, assessments, taxes, charges, liens and levies applicable to the Property or the Project, including without limitation possessory interest taxes, if applicable, imposed by any public entity, and shall pay such charges prior to delinquency. However, Owner shall not be required to pay any such charge so long as (a) Owner is contesting such charge in good faith and by appropriate proceedings, (b) Owner maintains reserves adequate to pay any contested liabilities, and (c) on final determination of the proceeding or contest, Owner immediately pays or discharges any decision or judgment rendered against it, together with all costs, charges and interest. The foregoing is not intended to impair Owner’s ability to apply for any applicable exemption from property taxes or other assessments and fees.
6.8 Insurance Coverage. Throughout the term of this Agreement , at Owner’s expense, Owner shall maintain property and commercial general liability insurance consistent with the usual and customary coverage carried by owners of similar projects in the area and consistent with the requirements of any lender that holds a lien on the Property.
6.9 Property Damage or Destruction. If any of the Restricted Units are damaged or destroyed, Owner shall repair or restore the same, consistent with the occupancy and rent restriction requirements set forth in this Agreement. Such work shall be commenced as soon as reasonably practicable after the damage or loss occurs and shall be completed within one year thereafter or as soon as reasonably practicable, provided that insurance proceeds are available to be applied to such repairs or restoration within such period and the repair or restoration is financially feasible. During such time that lenders or investors providing financing for the Project impose requirements that differ from the requirements of this Section the requirements of such lenders and investors shall prevail.
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11 7. Subordination. Owner hereby represents, warrants and covenants that with the exception of easements of record, absent the written consent of City which City may grant or withhold in the exercise of its sole discretion, this Agreement shall not be subordinated in priority to any lien (other than those pertaining to taxes or assessments), encumbrance, or other interest in the Property or the Project. If at the time this Agreement is recorded, any interest, lien, or encumbrance has been recorded against the Project in position superior to this Agreement, upon the request of City, Owner hereby covenants and agrees to promptly undertake all action necessary to clear such matter from title or to subordinate such interest to this Agreement consistent with the intent of and in accordance with this Section 7, and to provide such evidence thereof as City may reasonably request.
8. Encumbrance.
8.1 Encumbrances. Owner agrees to use commercially reasonable efforts to ensure that all deeds of trust or other security instruments and any applicable subordination agreement recorded against the Property, the Project or part thereof for the benefit of a lender (“Lender”) shall contain each of the following provisions: (i) Lender shall use its best efforts to provide to City a copy of any notice of default issued to Owner concurrently with provision of such notice to Owner; and (ii) City shall have the reasonable right, but not the obligation, to cure any default by Owner within the same period of time provided to Owner for such cure extended by an additional ninety (90) days. Owner agrees to provide to City a copy of any notice of default Owner receives from any Lender within five (5) business days following Owner’s receipt thereof.
8.2 Mortgagee Protection. No violation of any provision contained herein shall defeat or render invalid the lien of any mortgage or deed of trust made in good faith and for value upon all or any portion of the Project or the Property, and the purchaser at any trustee’s sale or foreclosure sale shall not be liable for any violation of any provision hereof occurring prior to the acquisition of title by such purchaser. Such purchaser shall be bound by and subject to this Agreement from and after such trustee’s sale or foreclosure sale. Promptly upon determining that a violation of this Agreement has occurred, City shall give written notice to the holders of record of any mortgages or deeds of trust encumbering the Project or the Property that such violation has occurred, and any mortgagee of record shall have the reasonable right, but not the obligation, to cure any default by Owner under this Agreement within the same period of time provided to Owner for such cure.
8.3 Estoppel Statement. Within thirty (30) days after request by Owner, City shall provide an estoppel statement to any lender or prospective purchaser of the Property which confirms Owner’s compliance with this Agreement (or specifying any non-compliance) together with such other matters reasonably requested by such lender or prospective purchaser. 380
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12 9. Default and Remedies.
9.1 Events of Default. The occurrence of any one or more of the following events shall constitute an event of default hereunder ("Event of Default"):
(a) Owner’s failure to maintain insurance as required hereunder, and the failure of Owner to cure such default within five (5) days; (b) Subject to Owner’s right to contest the following charges, Owner’s failure to pay taxes or assessments due on the Property or the Project prior to delinquency, or failure to pay any other charge that may result in a lien on the Property or the Project, and Owner’s failure to cure such default within twenty (20) days of delinquency, but in all events prior to the date upon which the holder of any such lien has the right to foreclose thereon; (c) Owner’s default in the performance of any term, provision or covenant under this Agreement (other than an obligation enumerated in this Section 9.1), and unless such provision specifies a shorter cure period for such default, the continuation of such default for ten (10) days in the event of a monetary default or thirty (30) days in the event of a non-monetary default following the date upon which City shall have given written notice of the default to Owner, or if the nature of any such non-monetary default is such that it cannot be cured within thirty (30) days, Owner’s failure to commence to cure the default within thirty (30) days and thereafter prosecute the curing of such default to completion with due diligence and in good faith, but in no event later than ninety (90) days from receipt of the notice of default.
Notwithstanding anything to the contrary contained herein, Owner’s Limited Partner shall have the right, but not the obligation, to cure an event of default hereunder and City agrees to accept or reject such cure on the same basis as if provided by Owner itself.
9.2 Remedies. Upon the occurrence of an Event of Default and its continuation beyond any applicable cure period, City may proceed with any of the following remedies:
A. Bring an action for equitable relief seeking the specific performance of the terms and conditions of this Agreement, and/or enjoining, abating, or preventing any violation of such terms and conditions, and/or seeking declaratory relief; B. For violations of obligations with respect to rents for Restricted Units, impose a charge in an amount equal to the actual amount collected in excess of the Affordable Rent; provided however, any charge imposed after a foreclosure shall be limited to the amount collected in excess of the Affordable Rent following such foreclosure.
C. Pursue any other remedy allowed at law or in equity.
Each of the remedies provided herein is cumulative and not exclusive. The City may exercise from time to time any rights and remedies available to it under applicable law or in equity, in addition to, and not in lieu of, any rights and remedies expressly provided in this Agreement.
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13 10. Indemnity. To the greatest extent permitted by law, Owner shall indemnify, defend (with counsel approved by City) and hold the City and its elected and appointed officers, officials, employees, agents, consultants, and contractors (all of the foregoing, collectively, the “Indemnitees”) harmless from and against all liability, loss, cost, expense (including without limitation attorneys’ fees and costs of litigation), claim, demand, action, suit, judicial or administrative proceeding, penalty, deficiency, fine, order, and damage (all of the foregoing collectively “Claims”) arising directly or indirectly, in whole or in part, as a result of or in connection with Owner’s or Owner’s employees’ agents’, contractors’ or subcontractors’ (all of the foregoing, collectively “Owner’s Parties”) construction, management, or operation of the Property and the Project, failure to comply with applicable laws, including without limitation, state and federal fair housing laws, or any failure to perform any obligation as and when required by this Agreement. Owner’s indemnification obligations under this Section 10 shall not extend to Claims to the extent resulting from the gross negligence or willful misconduct of Indemnitees.
The provisions of this Section 10 shall survive the expiration or earlier termination of this Agreement. City does not and shall not waive any rights that it may have by reason of any indemnity and hold harmless provisions set forth in this Agreement because of City’s acceptance, or Owner’s deposit with City, of any of the insurance policies described in this Agreement.
11. Miscellaneous.
11.1 Amendments. This Agreement may be amended or modified only by a written instrument signed by both Parties and recorded in the Official Records.
11.2 No Waiver. Any waiver by City of any term or provision of this Agreement must be in writing. No waiver shall be implied from any delay or failure by City to take action on any breach or default hereunder or to pursue any remedy allowed under this Agreement or applicable law. No failure or delay by City at any time to require strict performance by Owner of any provision of this Agreement or to exercise any election contained herein or any right, power or remedy hereunder shall be construed as a waiver of any other provision or any succeeding breach of the same or any other provision hereof or a relinquishment for the future of such election.
11.3 Notices. Except as otherwise specified herein, all notices to be sent pursuant to this Agreement shall be made in writing, and sent to the Parties at their respective addresses specified below or to such other address as a Party may designate by written notice delivered to the other parties in accordance with this Section. All such notices shall be sent by (i) personal delivery, in which case notice is effective upon delivery; (ii) certified or registered mail, return receipt requested, in which case notice shall be deemed delivered upon receipt if delivery is confirmed by a return receipt; or (iii) nationally recognized overnight courier, with charges prepaid or charged to the sender’s account, in which case notice is effective on delivery if delivery is confirmed by the delivery service.
City: City of Wildomar
23873 Clinton Keith Road, Suite 110
Wildomar, CA 92595
Attention: City Manager
Owner: c/o Palm Communities
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14 100 Pacifica, Suite 203
Irvine, CA 92618
Attn: Danavon L. Horn
With a copy to: c/o Hunt Capital Partners, LLC
15910 Ventura Boulevard, Suite 1100
Encino, California 91436
and: Nixon Peabody LLP
799 9th Street NW Suite 500,
Washington, DC 20001-5327
Attention: Emily L. McKinney
11.4 Further Assurances. The Parties shall execute, acknowledge and deliver to the other such other documents and instruments, and take such other actions, as either shall reasonably request as may be necessary to carry out the intent of this Agreement.
11.5 Parties Not Co-Venturers; Independent Contractor; No Agency Relationship.
Nothing in this Agreement is intended to or shall establish the Parties as partners, co-venturers, or principal and agent with one another. The relationship of Owner and City shall not be construed as a joint venture, equity venture, partnership or any other relationship. City neither undertakes nor assumes any responsibility or duty to Owner (except as expressly provided in this Agreement) or to any third party with respect to the Project. Owner and its employees are not employees of City but rather are, and shall always be considered independent contractors.
Furthermore, Owner and its employees shall at no time pretend to be or hold themselves out as employees or agents of City. Except as City may specify in writing, Owner shall not have any authority to act as an agent of City or to bind City to any obligation.
11.6 Action by the City. Except as may be otherwise specifically provided herein, whenever any approval, notice, direction, consent or request by the City is required or permitted under this Agreement, such action shall be in writing, and such action may be given, made or taken by the City’s Authorized Representative or by any person who shall have been designated by the City’s Authorized Representative, without further approval by the City Council.
11.7 Non-Liability of City and City Officials, Employees and Agents. No member, official, employee or agent of the City shall be personally liable to Owner or any successor in interest, in the event of any default or breach by the City, or for any amount of money which may become due to Owner or its successor or for any obligation of City under this Agreement.
11.8 Headings; Construction; Statutory References. The headings of the sections and paragraphs of this Agreement are for convenience only and shall not be used to interpret this Agreement. Unless expressly stated otherwise, each reference to a particular Section of this Agreement shall mean all subsections and subparagraphs of such Section. The language of this Agreement shall be construed as a whole according to its fair meaning and not strictly for or against any Party. All references in this Agreement to particular statutes, regulations, ordinances or resolutions of the United States, the State of California, or the City of Wildomar shall be deemed to include the same statute, regulation, ordinance or resolution as hereafter amended or 383
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15 renumbered, or if repealed, to such other provisions as may thereafter govern the same subject.
11.9 Time is of the Essence. Time is of the essence in the performance of this Agreement.
11.10 Governing Law; Venue. This Agreement shall be construed in accordance with the laws of the State of California without regard to principles of conflicts of law. Any action to enforce or interpret this Agreement shall be filed and heard in the Superior Court of Riverside County, California or in the Federal District Court for the Central District of California.
11.11 Attorneys' Fees and Costs. If any legal or administrative action is brought to interpret or enforce the terms of this Agreement, the prevailing party shall be entitled to recover all reasonable attorneys' fees and costs incurred in such action.
11.12 Severability. If any provision of this Agreement is held invalid, illegal, or unenforceable by a court of competent jurisdiction, the validity, legality, and enforceability of the remaining provisions shall not be affected or impaired thereby.
11.13 Entire Agreement; Exhibits. This Agreement, together with the Conditions of Approval for the Project, contains the entire agreement of Parties with respect to the subject matter hereof, and supersedes all prior oral or written agreements between the Parties with respect thereto. Exhibits A through D, attached hereto are incorporated herein by this reference.
11.14 Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be an original and all of which together shall constitute one agreement.
SIGNATURES ON FOLLOWING PAGES.
384
16 IN WITNESS WHEREOF, the Parties have executed this Affordable Housing Agreement and Declaration of Restrictive Covenants as of the date first written above.
CITY:
CITY OF WILDOMAR, a municipal corporation
_______________________________
City Manager
Approved as to form:
_____________________________
City Attorney
OWNER:
WILDOMAR TRES LAGOS PARTNERS LP,
a California limited partnership
By: PC Wildomar Developers LLC,
a California limited liability company,
its administrative general partner
By: Palm Communities,
a California corporation,
its manager
By: __________________________
Danavon L. Horn, President
By: Las Palmas Housing & Development Corporation,
a California nonprofit public benefit corporation,
its managing general partner
By: ________________________
Joseph M. Michaels, President
SIGNATURES MUST BE NOTARIZED.
385
17 ACKNOWLEDGMENT
State of California )
) ss
County of ___________ )
On , before me,___________________________________________, (Name of Notary)
notary public, personally appeared _________________________________________________ who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
(Notary Signature)
A notary public or other officer completing this
certificate verifies only the identity of the
individual who signed the document to which this
certificate is attached, and not the truthfulness,
accuracy, or validity of that document.
386
18 ACKNOWLEDGMENT
State of California )
) ss
County of ___________ )
On , before me,___________________________________________, (Name of Notary)
notary public, personally appeared _________________________________________________ who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
(Notary Signature)
A notary public or other officer completing this
certificate verifies only the identity of the
individual who signed the document to which this
certificate is attached, and not the truthfulness,
accuracy, or validity of that document.
387
19 Exhibit A
PROPERTY
Real property situated in the City of Wildomar, County of Riverside, State of California, and described as follows:
PARCEL "A" OF NOTICE OF LOT LINE ADJUSTMENT NO. 2022-004, AS SHOWN ON EXHIBIT "B" AND DESCRIBED IN EXHIBIT "A" RECORDED DECEMBER 01, 2022, AS INSTRUMENT NO. 2022-0488034 OF OFFICIAL RECORDS, CITY OF WILDOMAR, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA DESCRIBED AS FOLLOWS:
THOSE PORTIONS OF PARCEL A OF CERTIFICATE OF PARCEL MERGER NO. 2022- 005, IN THE CITY OF WILDOMAR, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, RECORDED NOVEMBER 15, 2022, AS DOCUMENT NO. 2022-0470419, OFFICIAL RECORDS OF SAID COUNTY, AND PARCELS 1 AND 2 OF CERTIFICATE OF COMPLIANCE AND WAIVER OF TENTATIVE PARCEL MAP NO. 9353, RECORDED NOVEMBER 16, 1976 AS DOCUMENT NO. 242267 OF OFFICIAL RECORDS OF SAID COUNTY, SAID PARCELS 1 AND 2 BEING ALL OF PARCEL 1 OF PARCEL MAP 9084, AS SHOWN BY MAP ON FILE IN BOOK 40, PAGE 25 OF PARCEL MAPS, IN THE OFFICE
OF THE COUNTY RECORDER OF SAID COUNTY, BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS:
COMMENCING AT THE NORTHEAST CORNER OF SAID PARCEL A, ALSO BEING A POINT IN THE EASTERLY BOUNDARY OF PARCEL MAP 8617, AS SHOWN BY MAP ON FILE IN BOOK 35, PAGE 32 OF PARCEL MAPS, IN THE OFFICE OF THE COUNTY
RECORDER OF SAID COUNTY, AND A POINT IN THE SOUTHERLY LINE OF CATT ROAD, AS SAID ROAD IS SHOWN ON SAID PARCEL MAP;
THENCE ALONG SAID SOUTHERLY LINE NORTH 89° 08' 31" WEST, A DISTANCE OF 486.35 FEET TO THE NORTHWEST CORNER OF SAID PARCEL A, SAID CORNER BEING A POINT IN THE WESTERLY BOUNDARY OF SAID PARCEL MAP 8617 AND A POINT IN THE EASTERLY BOUNDARY OF PARCEL MAP 9084, AS SHOWN BY MAP ON FILE IN BOOK 40, PAGE 25 OF PARCEL MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, SAID POINT BEING THE POINT OF BEGINNING;
THENCE ALONG THE WESTERLY LINE OF SAID PARCEL A AND SAID WESTERLY LINE OF PARCEL MAP 8617 AND SAID EASTERLY LINE OF PARCEL MAP 9084 SOUTH 00° 51' 29" WEST, A DISTANCE OF 181.62 FEET TO A LINE PARALLEL WITH AND DISTANT 181.62 FEET SOUTHERLY, MEASURED AT RIGHT ANGLES, FROM SAID SOUTHERLY LINE OF CATT ROAD;
THENCE ALONG SAID PARALLEL LINE SOUTH 89° 08' 31" EAST, A DISTANCE OF 100.00 FEET TO A LINE PARALLEL WITH AND DISTANT 100.00 FEET EASTERLY, 388
20 MEASURED AT RIGHT ANGLES, FROM SAID WESTERLY LINE OF PARCEL A; THENCE ALONG SAID PARALLEL LINE SOUTH 00° 51' 29" WEST, A DISTANCE OF 118.38 FEET TO A LINE PARALLEL WITH AND DISTANT 300.00 FEET SOUTHERLY, MEASURED AT RIGHT ANGLES, FROM SAID SOUTHERLY LINE OF CATT ROAD; THENCE ALONG SAID PARALLEL LINE NORTH 89° 08' 31" WEST, A DISTANCE OF 100.00 FEET TO SAID WESTERLY LINE OF PARCEL A AND THE SOUTHEAST CORNER OF PARCEL 1 OF SAID PARCEL MAP 9084;
THENCE ALONG THE SOUTHERLY LINE OF SAID PARCEL 1 OF PARCEL MAP 9084 NORTH 89° 08' 31" WEST, A DISTANCE OF 550.00 FEET TO THE SOUTHWEST CORNER OF SAID PARCEL;
THENCE ALONG THE WESTERLY LINE OF SAID PARCEL 1 OF PARCEL MAP 9084 NORTH 00° 51' 29" EAST, A DISTANCE OF 300.00 FEET TO THE NORTHWEST CORNER
OF SAID PARCEL AND THE SOUTHERLY LINE OF CATT ROAD AS SAID ROAD IS SHOWN ON SAID PARCEL MAP 9084;
THENCE ALONG SAID SOUTHERLY LINE SOUTH 89° 08' 31" EAST, A DISTANCE OF 550.00 FEET TO THE POINT OF BEGINNING.
Current APNS: 380-100-008 and 380-100-009 and 380-100-010 New APN: 380-100-021
389
4856-2954-3540 v2
RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:
City of Wildomar
23873 Clinton Keith Road, Suite 110
Wildomar, CA 92595
Attention: City Clerk
EXEMPT FROM RECORDING FEES PER
GOVERNMENT CODE §§6103, 27383
APN: 0380-100-021 SPACE ABOVE FOR RECORDER’S USE
SUBORDINATION AGREEMENT
NOTICE: THIS SUBORDINATION AGREEMENT RESULTS IN YOUR
SECURITY INTEREST IN THE PROPERTY BECOMING SUBJECT TO
AND OF LOWER PRIORITY THAN THE LIEN OF SOME OTHER OR
LATER SECURITY INSTRUMENT
This Subordination Agreement (this “Subordination Agreement”) is dated for reference purposes as of July 1, 2023, and is executed by and among the City of Wildomar, a municipal corporation (the “ City”), Citibank, N.A., a national banking association ( “Lender”) and Wildomar Tres Lagos Partners LP, a California limited partnership (“Borrower”).
RECITALS
A. Lender has or will make a loan to Borrower in the original principal amount of
TWENTY-NINE MILLION TEN THOUSAND FIVE HUNDRED FIFTY-TWO and NO/100 Dollars ($29,010,552) (the “Tax-Exempt Loan”) to assist in financing the development of an affordable multifamily residential development (the “Project”) on property located in the City of Wildomar, California at 23345 and 23365 Catt Road , known as Riverside County Assessor’s Parcel No. 0380-100- 021, and more particularly described in Exhibit A attached hereto (the “Property”). Repayment of the Tax-Exempt Loan is secured by that Multifamily Deed of Trust, Assignment of Rents, Security Agreement and Fixture Filing dated as of July 1, 2023 and recorded in the Official Records of Riverside County (“Official Records ”) on July ___, 2023 as Instrument No. ____________ (the “Multifamily Deed of Trust”).
B. In addition, Lender has or will make a loan to Borrower in the original principal amount of FIFTEEN MILLION NINE HUNDRED THOUSAND and NO/100 Dollars ($15,900,000) (the “ Taxable Loan ”) to further assist in financing the development of the Project. Repayment of the Taxable Loan is secured by that Subordinate Multifamily Deed of Trust, Assignment of Rents, Security Agreement and Fixture Filing dated as of July 1, 2023 and recorded in the Official Records on 390
4856-2954-3540 v2
July ___, 2023 as Instrument No. ____________ (the “ Subordinate Deed of Trust”).
C. As used herein, the term “Loan” means, collectively the Tax-Exempt Loan and the Taxable Loan and the term “ Deed of Trust” means, collectively, the Multifamily Deed of Trust and the Subordinate Deed of Trust.
D. Pursuant to California Government Code Section 65915 et seq. (the “ Density Bonus Statute”) and California Government Code Section 65913.4 (Chapter 366, Statutes of 2017, as subsequently amended) (“ SB 35”), City and Borrower have executed that certain Affordable Housing Agreement and Declaration of Restrictive Covenants (the “ Affordable Housing Agreement ”) dated as of July 1, 2023, recorded on _____________, 2023 in the Official Records as Instrument No. _________. In accordance with the Density Bonus Statute and SB 35, the Affordable Housing Agreement is required to be recorded against the Property senior to all deeds of trust and similar encumbrances. Accordingly, Lender has agreed to subordinate the lien of the Deed of Trust to the Affordable Housing Agreement as set forth herein.
AGREEMENT
1. Subordination. The Affordable Housing Agreement shall unconditionally be and remain a lien, claim, or charge on the Property prior and superior to the Deed of Trust. Lender acknowledges that it has had an opportunity to review the Affordable Housing Agreement, and Lender intentionally subordinates the lien of the Deed of Trust to the Affordable Housing Agreement.
2. Amendments Require Consent. City agrees that it will not amend or modify the Affordable Housing Agreement without Lender’s prior written consent.
3. Notice and Cure Rights. City agrees that concurrently with City’s provision of any notice of default to Borrower under the Affordable Housing Agreement, City will provide a copy of such notice to Lender at the address specified below. City agrees that Lender will have the right to cure any default of Borrower under the Affordable Housing Agreement within the same period of time provided to Borrower under such Agreement, extended by a period of thirty (30) days.
4. Integration; Amendments; No Waiver. This Subordination Agreement is the whole and only agreement with regard to the subordination of the liens, claims, and charges of the Deed of Trust to the Affordable Housing Agreement. This Subordination Agreement may not be modified or amended except by a written agreement signed by the party against whom enforcement is sought. No waiver shall be deemed to be made by any party of any of its rights hereunder unless the same shall be in writing signed by such party, and each such waiver, if any, shall be a waiver only with respect to the specific matter or matters to which the waiver relates and shall in no way impair the rights of such party or the obligations of Borrower to City or Lender in any other respect at any other time.
5. Successors and Assigns. This Subordination Agreement is binding on and inures to the benefit of the legal representatives, successors, and assigns of the parties. 391
4856-2954-3540 v2
6. Governing Law. This Subordination Agreement shall be governed by, and construed in accordance with, the laws of the State of California, without regard to the choice of law rules of that State, except to the extent that any of such laws may now or hereafter be preempted by Federal law. The parties hereto consent to the jurisdiction of any Federal or State court having jurisdiction within the County of Riverside, California, submit to venue in such jurisdiction, and also consent to service of process by any means authorized by Federal law or the law of the State of California. Without limiting the generality of the foregoing, the parties hereby waive and agree not to assert by way of motion, defense, or otherwise in such suit, action, or proceeding, any claim that (i) any such party is not subject to the jurisdiction of the courts of the above-referenced jurisdiction or the United States District Court for such jurisdiction, or (ii) such suit, action, or proceeding is brought in an inconvenient forum, or (iii) the venue of such suit, action, or proceeding is improper.
7. Notices. All notices given under this Subordination Agreement shall be in writing and be given by personal delivery, overnight receipted courier (such as Airborne, UPS, or Federal Express) or by registered or certified United States mail, postage prepaid, sent to the City and Borrower at their respective addresses set forth in the Affordable Housing Agreement and to Lender at its address appearing below its signature. Notices shall be effective upon the first to occur of receipt, when proper delivery is refused, or the expiration of forty-eight (48) hours after deposit in registered or certified United States mail as described above. Addresses for notice may be changed by any party by notice to any other party in accordance with this Section.
8. Counterparts. This Subordination Agreement may be executed in counterparts, each of which shall be deemed an original and all of which taken together shall constitute one and the same instrument.
SIGNATURES ON FOLLOWING PAGE.
392
4856-2954-3540 v2
IN WITNESS WHEREOF, the parties have executed this Subordination Agreement as of the date first above written.
CITY:
CITY OF WILDOMAR, a municipal corporation
_______________________________
City Manager
Approved as to form:
_____________________________
City Attorney
LENDER:
CITIBANK, N.A. a national banking association
By: _____________________________
Name: ___________________________
Title: ___________________________
Deal ID No. 50008743
Address for notices to Lender:
Citibank, N.A.
388 Greenwich Street, Trading 4th Floor
New York, New York 10013
Attention: Transaction and Asset Management Group
Re: Tres Lagos Apartments Phase I Deal ID No. 50008743
Facsimile: (212) 723-8209
and:
Citibank, N.A.
325 East Hillcrest Drive, Suite 160
Thousand Oaks, California 91360
Attention: Operations Manager/Asset Manager
Re: Tres Lagos Apartments Phase I Deal ID No. 50008743
Facsimile: (805) 557-0924
393
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Prior to the Conversion Date, with a copy to:
Citibank, N.A.
388 Greenwich Street, Trading 4th Floor
New York, New York 10013
Attention: Account Specialist
Re: Tres Lagos Apartments Phase I Deal ID No. 50008743
Facsimile: (212) 723 8209
Following the Conversion Date, with a copy to:
Citibank N.A.
c/o Berkadia Commercial Servicing Department
323 Norristown Road, Suite 300
Ambler, Pennsylvania 19002
Attention: Client Relations Manager
Re: Tres Lagos Apartments Phase I Deal ID No. 50008743
Facsimile: (215) 328-0305
With a copy of any default notice to:
Citibank, N.A.
388 Greenwich Street, 17th Floor
New York, New York 10013
Attention: General Counsel’s Office
Re: Tres Lagos Apartments Phase I Deal ID No. 50008743
Facsimile: (646) 291-5754
SIGNATURES MUST BE NOTARIZED.
SIGNATURES CONTINUE ON FOLLOWING PAGE.
394
4856-2954-3540 v2
BORROWER:
WILDOMAR TRES LAGOS PARTNERS LP,
a California limited partnership
By: PC Wildomar Developers LLC,
a California limited liability company,
its administrative general partner
By: Palm Communities,
a California corporation,
its manager
By: __________________________
Danavon L. Horn, President
By: Las Palmas Housing & Development Corporation,
a California nonprofit public benefit corporation,
its managing general partner
By: ________________________
Joseph M. Michaels, President
395
4856-2954-3540 v2
ACKNOWLEDGMENT
State of California )
) ss
County of ___________ )
On , before me,___________________________________________, (Name of Notary)
notary public, personally appeared _________________________________________________ who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
(Notary Signature)
A notary public or other officer completing this
certificate verifies only the identity of the
individual who signed the document to which this
certificate is attached, and not the truthfulness,
accuracy, or validity of that document.
396
4856-2954-3540 v2
ACKNOWLEDGMENT
State of California )
) ss
County of ___________ )
On , before me,___________________________________________, (Name of Notary)
notary public, personally appeared _________________________________________________ who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
(Notary Signature)
A notary public or other officer completing this
certificate verifies only the identity of the
individual who signed the document to which this
certificate is attached, and not the truthfulness,
accuracy, or validity of that document.
397
4856-2954-3540 v2
ACKNOWLEDGMENT
State of California )
) ss
County of ___________ )
On , before me,___________________________________________, (Name of Notary)
notary public, personally appeared _________________________________________________ who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
(Notary Signature)
A notary public or other officer completing this
certificate verifies only the identity of the
individual who signed the document to which this
certificate is attached, and not the truthfulness,
accuracy, or validity of that document.
398
4856-2954-3540 v2
Exhibit A
PROPERTY
Real property situated in the City of Wildomar, County of Riverside, State of California, and described as follows:
PARCEL "A" OF NOTICE OF LOT LINE ADJUSTMENT NO. 2022-004, AS SHOWN ON EXHIBIT "B" AND DESCRIBED IN EXHIBIT "A" RECORDED DECEMBER 01, 2022, AS INSTRUMENT NO. 2022-0488034 OF OFFICIAL RECORDS, CITY OF WILDOMAR, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA DESCRIBED AS FOLLOWS:
THOSE PORTIONS OF PARCEL A OF CERTIFICATE OF PARCEL MERGER NO. 2022-005,
IN THE CITY OF WILDOMAR, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, RECORDED NOVEMBER 15, 2022, AS DOCUMENT NO. 2022-0470419, OFFICIAL RECORDS OF SAID COUNTY, AND PARCELS 1 AND 2 OF CERTIFICATE OF COMPLIANCE AND WAIVER OF TENTATIVE PARCEL MAP NO. 9353, RECORDED NOVEMBER 16, 1976 AS DOCUMENT NO. 242267 OF OFFICIAL RECORDS OF SAID COUNTY, SAID PARCELS 1 AND 2 BEING ALL OF PARCEL 1 OF PARCEL MAP 9084, AS SHOWN BY MAP ON FILE IN BOOK 40, PAGE 25 OF PARCEL MAPS, IN THE OFFICE OF
THE COUNTY RECORDER OF SAID COUNTY, BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS:
COMMENCING AT THE NORTHEAST CORNER OF SAID PARCEL A, ALSO BEING A POINT IN THE EASTERLY BOUNDARY OF PARCEL MAP 8617, AS SHOWN BY MAP ON FILE IN BOOK 35, PAGE 32 OF PARCEL MAPS, IN THE OFFICE OF THE COUNTY
RECORDER OF SAID COUNTY, AND A POINT IN THE SOUTHERLY LINE OF CATT ROAD, AS SAID ROAD IS SHOWN ON SAID PARCEL MAP;
THENCE ALONG SAID SOUTHERLY LINE NORTH 89° 08' 31" WEST, A DISTANCE OF 486.35 FEET TO THE NORTHWEST CORNER OF SAID PARCEL A, SAID CORNER BEING A POINT IN THE WESTERLY BOUNDARY OF SAID PARCEL MAP 8617 AND A POINT IN THE EASTERLY BOUNDARY OF PARCEL MAP 9084, AS SHOWN BY MAP ON FILE IN BOOK 40, PAGE 25 OF PARCEL MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, SAID POINT BEING THE POINT OF BEGINNING;
THENCE ALONG THE WESTERLY LINE OF SAID PARCEL A AND SAID WESTERLY LINE OF PARCEL MAP 8617 AND SAID EASTERLY LINE OF PARCEL MAP 9084 SOUTH 00° 51' 29" WEST, A DISTANCE OF 181.62 FEET TO A LINE PARALLEL WITH AND DISTANT 181.62 FEET SOUTHERLY, MEASURED AT RIGHT ANGLES, FROM SAID SOUTHERLY LINE OF CATT ROAD;
THENCE ALONG SAID PARALLEL LINE SOUTH 89° 08' 31" EAST, A DISTANCE OF 399
4856-2954-3540 v2
100.00 FEET TO A LINE PARALLEL WITH AND DISTANT 100.00 FEET EASTERLY, MEASURED AT RIGHT ANGLES, FROM SAID WESTERLY LINE OF PARCEL A; THENCE ALONG SAID PARALLEL LINE SOUTH 00° 51' 29" WEST, A DISTANCE OF 118.38 FEET TO A LINE PARALLEL WITH AND DISTANT 300.00 FEET SOUTHERLY, MEASURED AT RIGHT ANGLES, FROM SAID SOUTHERLY LINE OF CATT ROAD; THENCE ALONG SAID PARALLEL LINE NORTH 89° 08' 31" WEST, A DISTANCE OF 100.00 FEET TO SAID WESTERLY LINE OF PARCEL A AND THE SOUTHEAST CORNER OF PARCEL 1 OF SAID PARCEL MAP 9084;
THENCE ALONG THE SOUTHERLY LINE OF SAID PARCEL 1 OF PARCEL MAP 9084 NORTH 89° 08' 31" WEST, A DISTANCE OF 550.00 FEET TO THE SOUTHWEST CORNER OF SAID PARCEL;
THENCE ALONG THE WESTERLY LINE OF SAID PARCEL 1 OF PARCEL MAP 9084 NORTH 00° 51' 29" EAST, A DISTANCE OF 300.00 FEET TO THE NORTHWEST CORNER
OF SAID PARCEL AND THE SOUTHERLY LINE OF CATT ROAD AS SAID ROAD IS SHOWN ON SAID PARCEL MAP 9084;
THENCE ALONG SAID SOUTHERLY LINE SOUTH 89° 08' 31" EAST, A DISTANCE OF 550.00 FEET TO THE POINT OF BEGINNING.
Current APNS: 380-100-008 and 380-100-009 and 380-100-010 New APN: 380-100-021
400
4882-2791-4868 v1
60070770.1
RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:
City of Wildomar
23873 Clinton Keith Road, Suite 110
Wildomar, CA 92595
Attention: City Clerk
EXEMPT FROM RECORDING FEES PER
GOVERNMENT CODE §§6103, 27383
APN: 0380-100-021 SPACE ABOVE FOR RECORDER’S USE
SUBORDINATION AGREEMENT
NOTICE: THIS SUBORDINATION AGREEMENT RESULTS IN YOUR
SECURITY INTEREST IN THE PROPERTY BECOMING SUBJECT TO
AND OF LOWER PRIORITY THAN THE LIEN OF SOME OTHER OR
LATER SECURITY INSTRUMENT
This Subordination Agreement (this “Subordination Agreement”) is dated for reference purposes as of July 1, 2023, and is executed by and among the City of Wildomar, a municipal corporation (the “City”), Housing Authority of the County of Riverside, a public body corporate and politic (“Lender”) and Wildomar Tres Lagos Partners LP, a California limited partnership (“Borrower”).
RECITALS
A. Lender has or will make a purchase money loan to Borrower in the original principal amount of SIX HUNDRED THOUSAND AND NO/100 DOLLARS ($600,000.00) (the “Loan”) to assist in financing the development of an affordable multifamily residential development (the “Project”) on property located in the City of Wildomar, California at 23345 and 23365 Catt Road, known as Riverside County Assessor’s Parcel No. 0380-100- 021, and more particularly described in Exhibit A attached hereto (the “ Property”).
Repayment of the Loan is secured by a Purchase Money Deed of Trust with Assignment of Rents and Rider Attached Hereto Containing Terms Including Security Agreement and Fixture Filing dated as of June 19, 2023 and recorded in the Official Records of Riverside County (“Official Records”) on July ____, 2023 as Instrument No. ____________ (the “Deed of Trust”).
B. Pursuant to California Government Code Section 65915 et seq. (the “ Density Bonus Statute”) and California Government Code Section 65913.4 (Chapter 366, Statutes of 2017, as subsequently amended) (“SB 35”), City and Borrower have executed that certain Affordable Housing Agreement and Declaration of Restrictive Covenants (the “Affordable Housing Agreement”) dated as of July 1, 2023 and recorded in the Official Records on ______________, 2023 as Instrument No. ____________. In accordance with the Density Bonus Statute and SB 35, the Affordable Housing Agreement is required to be 401
4882-2791-4868 v1
60070770.1
recorded against the Property senior to all deeds of trust and similar encumbrances.
Accordingly, Lender has agreed to subordinate the lien of the Deed of Trust to the Affordable Housing Agreement as set forth herein.
AGREEMENT
1. Subordination. The Affordable Housing Agreement shall unconditionally be and remain a lien, claim, or charge on the Property prior and superior to the Deed of Trust. Lender acknowledges that it has had an opportunity to review the Affordable Housing Agreement, and Lender intentionally subordinates the lien of the Deed of Trust to the Affordable Housing Agreement.
2. Amendments Require Consent. City agrees that it will not amend or modify the Affordable Housing Agreement without Lender’s prior written consent.
3. Notice and Cure Rights. City agrees that concurrently with City’s provision of any notice of default to Borrower under the Affordable Housing Agreement, City will provide a copy of such notice to Lender at the address specified below. City agrees that Lender will have the right to cure any default of Borrower under the Affordable Housing Agreement within the same period of time provided to Borrower under such Agreement, extended by a period of thirty (30) days.
4. Integration; Amendments; No Waiver. This Subordination Agreement is the whole and only agreement with regard to the subordination of the liens, claims, and charges of the Deed of Trust to the Affordable Housing Agreement. This Subordination Agreement may not be modified or amended except by a written agreement signed by the party against whom enforcement is sought. No waiver shall be deemed to be made by any party of any of its rights hereunder unless the same shall be in writing signed by such party, and each such waiver, if any, shall be a waiver only with respect to the specific matter or matters to which the waiver relates and shall in no way impair the rights of such party or the obligations of Borrower to City or Lender in any other respect at any other time.
5. Successors and Assigns. This Subordination Agreement is binding on and inures to the benefit of the legal representatives, successors, and assigns of the parties.
6. Governing Law. This Subordination Agreement shall be governed by, and construed in accordance with, the laws of the State of California, without regard to the choice of law rules of that State, except to the extent that any of such laws may now or hereafter be preempted by Federal law. The parties hereto consent to the jurisdiction of any Federal or State court having jurisdiction within the County of Riverside, California, submit to venue in such jurisdiction, and also consent to service of process by any means authorized by Federal law or the law of the State of California. Without limiting the generality of the foregoing, the parties hereby waive and agree not to assert by way of motion, defense, or otherwise in such suit, action, or proceeding, any claim that (i) any such party is not subject to the jurisdiction of the courts of the above-referenced jurisdiction or the United States District Court for such jurisdiction, or (ii) such suit, action, or proceeding is brought in an inconvenient forum, or (iii) the venue of such suit, action, or proceeding is improper.
402
4882-2791-4868 v1
60070770.1
7. Notices. All notices given under this Subordination Agreement shall be in writing and be given by personal delivery, overnight receipted courier (such as Airborne, UPS, or Federal Express) or by registered or certified United States mail, postage prepaid, sent to the City and Borrower at their respective addresses set forth in the Affordable Housing Agreement and to Lender at its address appearing below its signature. Notices shall be effective upon the first to occur of receipt, when proper delivery is refused, or the expiration of forty-eight (48) hours after deposit in registered or certified United States mail as described above. Addresses for notice may be changed by any party by notice to any other party in accordance with this Section.
8. Counterparts. This Subordination Agreement may be executed in counterparts, each of which shall be deemed an original and all of which taken together shall constitute one and the same instrument.
SIGNATURES ON FOLLOWING PAGE.
403
4882-2791-4868 v1
60070770.1
IN WITNESS WHEREOF, the parties have executed this Subordination Agreement as of the date first above written.
CITY:
CITY OF WILDOMAR, a municipal corporation
_______________________________
City Manager
Approved as to form:
_____________________________
City Attorney
LENDER:
HOUSING AUTHORITY OF THE COUNTY OF RIVERSIDE,
a public body corporate and politic
By: ________________________________
Heidi Marshall, Executive Director
Approved as to form:
Minh C. Tran
Deputy Counsel
By:
Amrit P. Dhillon, Deputy County Counsel
Address for notices to Lender:
5555 Arlington Avenue
Riverside, CA 92504
Attn: Mervyn Manalo
SIGNATURES MUST BE NOTARIZED.
SIGNATURES CONTINUE ON FOLLOWING PAGE.
404
4882-2791-4868 v1
60070770.1
BORROWER:
WILDOMAR TRES LAGOS PARTNERS LP,
a California limited partnership
By: PC Wildomar Developers LLC,
a California limited liability company,
its administrative general partner
By: Palm Communities,
a California corporation,
its manager
By: __________________________
Danavon L. Horn, President
By: Las Palmas Housing & Development Corporation,
a California nonprofit public benefit corporation,
its managing general partner
By: ________________________
Joseph M. Michaels, President
SIGNATURES MUST BE NOTARIZED.
405
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ACKNOWLEDGMENT
State of California )
) ss
County of ___________ )
On , before me,___________________________________________, (Name of Notary)
notary public, personally appeared _________________________________________________ who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
(Notary Signature)
A notary public or other officer completing this
certificate verifies only the identity of the
individual who signed the document to which this
certificate is attached, and not the truthfulness,
accuracy, or validity of that document.
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ACKNOWLEDGMENT
State of California )
) ss
County of ___________ )
On , before me,___________________________________________, (Name of Notary)
notary public, personally appeared _________________________________________________ who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
(Notary Signature)
A notary public or other officer completing this
certificate verifies only the identity of the
individual who signed the document to which this
certificate is attached, and not the truthfulness,
accuracy, or validity of that document.
407
4882-2791-4868 v1
60070770.1
ACKNOWLEDGMENT
State of California )
) ss
County of ___________ )
On , before me,___________________________________________, (Name of Notary)
notary public, personally appeared _________________________________________________ who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
(Notary Signature)
A notary public or other officer completing this
certificate verifies only the identity of the
individual who signed the document to which this
certificate is attached, and not the truthfulness,
accuracy, or validity of that document.
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Exhibit A
PROPERTY
Real property situated in the City of Wildomar, County of Riverside, State of California, and described as follows:
PARCEL "A" OF NOTICE OF LOT LINE ADJUSTMENT NO. 2022-004, AS SHOWN ON EXHIBIT "B" AND DESCRIBED IN EXHIBIT "A" RECORDED DECEMBER 01, 2022, AS INSTRUMENT NO. 2022-0488034 OF OFFICIAL RECORDS, CITY OF WILDOMAR, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA DESCRIBED AS FOLLOWS:
THOSE PORTIONS OF PARCEL A OF CERTIFICATE OF PARCEL MERGER NO. 2022-005,
IN THE CITY OF WILDOMAR, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, RECORDED NOVEMBER 15, 2022, AS DOCUMENT NO. 2022-0470419, OFFICIAL RECORDS OF SAID COUNTY, AND PARCELS 1 AND 2 OF CERTIFICATE OF COMPLIANCE AND WAIVER OF TENTATIVE PARCEL MAP NO. 9353, RECORDED NOVEMBER 16, 1976 AS DOCUMENT NO. 242267 OF OFFICIAL RECORDS OF SAID COUNTY, SAID PARCELS 1 AND 2 BEING ALL OF PARCEL 1 OF PARCEL MAP 9084, AS SHOWN BY MAP ON FILE IN BOOK 40, PAGE 25 OF PARCEL MAPS, IN THE OFFICE OF
THE COUNTY RECORDER OF SAID COUNTY, BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS:
COMMENCING AT THE NORTHEAST CORNER OF SAID PARCEL A, ALSO BEING A POINT IN THE EASTERLY BOUNDARY OF PARCEL MAP 8617, AS SHOWN BY MAP ON FILE IN BOOK 35, PAGE 32 OF PARCEL MAPS, IN THE OFFICE OF THE COUNTY
RECORDER OF SAID COUNTY, AND A POINT IN THE SOUTHERLY LINE OF CATT ROAD, AS SAID ROAD IS SHOWN ON SAID PARCEL MAP;
THENCE ALONG SAID SOUTHERLY LINE NORTH 89° 08' 31" WEST, A DISTANCE OF 486.35 FEET TO THE NORTHWEST CORNER OF SAID PARCEL A, SAID CORNER BEING A POINT IN THE WESTERLY BOUNDARY OF SAID PARCEL MAP 8617 AND A POINT IN THE EASTERLY BOUNDARY OF PARCEL MAP 9084, AS SHOWN BY MAP ON FILE IN BOOK 40, PAGE 25 OF PARCEL MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, SAID POINT BEING THE POINT OF BEGINNING;
THENCE ALONG THE WESTERLY LINE OF SAID PARCEL A AND SAID WESTERLY LINE OF PARCEL MAP 8617 AND SAID EASTERLY LINE OF PARCEL MAP 9084 SOUTH 00° 51' 29" WEST, A DISTANCE OF 181.62 FEET TO A LINE PARALLEL WITH AND DISTANT 181.62 FEET SOUTHERLY, MEASURED AT RIGHT ANGLES, FROM SAID SOUTHERLY LINE OF CATT ROAD;
THENCE ALONG SAID PARALLEL LINE SOUTH 89° 08' 31" EAST, A DISTANCE OF 409
4882-2791-4868 v1
60070770.1
100.00 FEET TO A LINE PARALLEL WITH AND DISTANT 100.00 FEET EASTERLY, MEASURED AT RIGHT ANGLES, FROM SAID WESTERLY LINE OF PARCEL A; THENCE ALONG SAID PARALLEL LINE SOUTH 00° 51' 29" WEST, A DISTANCE OF 118.38 FEET TO A LINE PARALLEL WITH AND DISTANT 300.00 FEET SOUTHERLY, MEASURED AT RIGHT ANGLES, FROM SAID SOUTHERLY LINE OF CATT ROAD; THENCE ALONG SAID PARALLEL LINE NORTH 89° 08' 31" WEST, A DISTANCE OF 100.00 FEET TO SAID WESTERLY LINE OF PARCEL A AND THE SOUTHEAST CORNER OF PARCEL 1 OF SAID PARCEL MAP 9084;
THENCE ALONG THE SOUTHERLY LINE OF SAID PARCEL 1 OF PARCEL MAP 9084 NORTH 89° 08' 31" WEST, A DISTANCE OF 550.00 FEET TO THE SOUTHWEST CORNER OF SAID PARCEL;
THENCE ALONG THE WESTERLY LINE OF SAID PARCEL 1 OF PARCEL MAP 9084 NORTH 00° 51' 29" EAST, A DISTANCE OF 300.00 FEET TO THE NORTHWEST CORNER
OF SAID PARCEL AND THE SOUTHERLY LINE OF CATT ROAD AS SAID ROAD IS SHOWN ON SAID PARCEL MAP 9084;
THENCE ALONG SAID SOUTHERLY LINE SOUTH 89° 08' 31" EAST, A DISTANCE OF 550.00 FEET TO THE POINT OF BEGINNING.
Current APNS: 380-100-008 and 380-100-009 and 380-100-010 New APN: 380-100-021
410
CITY OF WILDOMAR
CC - REGULAR MEETING
CONSENT CALENDAR
Agenda Staff Report # 1.16
Meeting Date: August
9, 2023
SUBJECT:
Land and Water Conservation Fund Grant Application for the 27-Acre Park Project
SUBMITTED BY:
Jason Farag
PREPARED BY:
Jason Farag
ACTION:
Adopt a Resolution entitled:
RESOLUTION 2023 - ____
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WILDOMAR, CALIFORNIA,
APPROVING THE APPLICATION FOR THE LAND AND WATER CONSERVATION FUND 27-ACRE PARK PROJECT
SUMMARY:
To be eligible for potential grant funding from the California Department of Parks and Recreation for the 27-Acre Park Project, the City Council must adopt a resolution approving the filing of an application for Land and Water Conservation Funds.
BACKGROUND:
The Land and Water Conservation Fund (LWCF) is a Federal grant program established to provide matching funds for the acquisition of lands and the development of facilities for public outdoor recreation purposes. In California, the California Department of Parks and Recreation (State) is the agency responsible for the administration of the LWCF grant program, establishing rules and procedures to govern applications by local agencies. The LWCF provides up to 50% matching funds for projects.
DISCUSSION:
City Staff, along with the City's on-call grant consultant, identified the LWCF grant program as a potential program to help fund the proposed 27-Acre Park Project (Project), located northwest of Wildomar Trail and La Estrella Rd. A copy of the proposed park layout is included in Attachment A, for reference. A cost estimate for the Project was prepared in 2019. The total estimated cost was $20,656,568. The City does not have the funds to build the Project at this 411
time. As a result, the City has phased the Project to construct certain park improvements and amenities that would allow the public to enjoy use of the park sooner while funding is sought or made available for the ultimate improvements. Phase 1 of the Project includes the construction of parking areas, bike trails and courses, pedestrian trails, a lookout area with shade structures and a playground, and related site improvements such as drainage and landscaping. A draft exhibit showing the proposed Phase 1 improvements is included in Attachment B. The estimated cost for Phase 1 of the Project is $5,675,000.
The LWCF grant program was open for applications this year, so City staff worked with the City's on-call grant consultant, California Consulting, to submit a grant application for Phase 1 of the 27-Acre Park Project. An application was submitted to the State on June 1, 2023, meeting the grant submittal deadline. The City is requesting $2,837,500 (50%) in grant funding from the State. If awarded, the City will be responsible to fund the entire Phase 1 construction and can only request reimbursement for 50% of the costs from the State after construction has been completed. If awarded, the City also agrees to maintain the property for outdoor recreation uses only, which will restrict the placement of most enclosed structures on the park site in the future. Certain structures that support the outdoor uses, such as restrooms, are permitted. Certain other structures, such as a community center building, may potentially be permitted at the approval of the National Park Service.
A requirement of the grant application is that the City Council adopt a resolution approving the filing of the application for Land and Water Conservation Funds. To continue being considered for funding under this program for the Project, the City needs to submit a copy of the approved resolution to the State as soon as possible. Therefore, staff recommends that the City Council adopt the attached resolution approving the filing of the application for LWCF funding to the State for the 27-Acre Park Project.
FISCAL IMPACT:
Costs for the preparation of the grant application are covered by the approved Measure A and Capital Improvement Program budgets. By adopting this resolution, the City is committing to provide $2,837,500 in matching funds for the Project. At this time, staff is recommending that the necessary match funds come from the DIF - Park Improvements fund account. The City is also committing to fund the entire $5,675,000 during construction with the understanding that the State will reimburse 50% of the costs after construction is complete and the City submits a reimbursement request. Staff recommends that the remaining 50% be funded from Fund 507 (Misc. State Funds) during construction.
If awarded and prior to construction, staff will present an updated budget and updated funding recommendations.
There is no impact to the General Fund at this time.
ATTACHMENTS:
412
Resolution
A - 27-Acre Park Project Exhibit
B - 27-Acre Park, Phase 1 Draft Exhibit
413
RESOLUTION NO. 2023 - _____
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WILDOMAR,
CALIFORNIA, APPROVING THE APPLICATION FOR THE LAND AND
WATER CONSERVATION FUND 27-ACRE PARK PROJECT
WHEREAS, the Congress under Public Law 88-578 has authorized the establishment of a federal Land and Water Conservation Fund Grant-In-Aid program, providing matching funds to the State of California and its political subdivisions for acquiring lands and developing Facilities for public outdoor recreation purposes; and WHEREAS, the California Department of Parks and Recreation is responsible for administration of the program in the State, setting up necessary rules and procedures governing applications by local agencies under the program; and WHEREAS, the applicant certifies by resolution the approval of the application and the availability of eligible matching funds prior to submission of the application to the State.
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Wildomar, California, that the City Council:
SECTION I. Approves the filing of an application for Land and Water Conservation Fund assistance for the proposed 27-Acre Park Project; and SECTION II. Certifies that the applicant has reviewed, understands, and agrees to the General Provisions contained in the contract shown in the Grant Administration Guide; and
SECTION III. Agrees to abide by 54 U.S.C. §200305(f)(3) which requires, “No property acquired or developed with assistance under this section shall, without the approval of the National Secretary of the Interior, be converted to other than public outdoor recreation uses. The Secretary shall approve such conversion only if he finds it to be in accord with the then existing comprehensive statewide outdoor recreation plan and only upon such conditions as he deems necessary to assure the substitution of other recreation properties of at least equal fair market value and of reasonably equivalent usefulness and location.”
SECTION IV. Certifies that said agency has matching funds from eligible source(s) and can finance 100 percent of the project, which up to half may be reimbursed; and SECTION V. Agrees to comply with all applicable federal, state and local laws, ordinances, rules, regulations and guidelines; and
SECTION VI. Appoints the City Manager, Community Services Director, and the Public Works Director as agents of the applicant to conduct all negotiations and execute and submit all documents, including, but not limited to, applications, contracts, 414
amendments, payment requests, and compliance with all applicable current state and federal laws which may be necessary for the completion of the aforementioned project.
PASSED, APPROVED, AND ADOPTED this 9th day of August, 2023. ______________________________
Joseph Morabito
Mayor
APPROVED AS TO FORM: ATTEST:
______________________________ ______________________________ Thomas D. Jex Janet Morales, CMC
City Attorney City Clerk
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0feet1601"=80' 80240 N O R T H
NATURAL TRAIL 4'
ACCESSIBLE RAMPCONNECTING SCHOOL(LC-502A)
DG PATH
LOOK OUT POINTWITH TREES,LANDSCAPINGAND SEATINGAREA
LOOK OUT POINT WITHTREES, LANDSCAPING,SEATING AREA, ANDINTERPRETIVE SIGNAGE
INTERPRETIVESIGNAGEBIO INFILTRATIONBASIN
SHADE STRUCTURE
PARENT DROP-OFFAREA WITH PARKING
EMERGENCY VEHICLEACCESS WITHPARKING
SECONDARY TRAIL HEADWITH PORTABLE RESTROOM PORTABLERESTROOM
TRAIL-HEAD
BIKE PLAZA
CONNECTION TOEXISTING TRAIL 6'
WINDMILL WITHPLANTING
DG BIKE PARKPARKING LOT
BIKE PARK-SEE BIKE PARK PLANS
DG ROADWAY TOACCESS PARKING
RONALD REAGAN ELEMENTARYAPN: 376350019 & 376350020
SUSAN DR
BRIDGE CROSSING
CULVERT CROSSING
CULVERT CROSSING
BRIDGE CROSSINGCULVERT CROSSING
HILL-TOP CLIMBHILL-TOP PLAY
WILDOMAR TRAILS ROAD PEGGY LANE
BIKE PATHS
TRAIL HEAD
DG PATH
NOTE:
MARKBYDATEENGINEERREVISIONSCITYAPPR.DATE
SEAL-ENGINEER:
R.C.E. No.
BENCHMARK:SHEET No. The private engineer signing these plans is responsible for assuring theaccuracy and acceptability of the design hereon. In the event ofdiscrepancies arising after City acceptance or during construction, theprivate engineer shall be responsible for determining an acceptablesolution and revising the plans for acceptance by the City.
WORK CONTAINED WITHIN THESE PLANS SHALL NOTCOMMENCE UNTIL AN ENCROACHMENT PERMITAND/OR A GRADING PERMIT HAS BEEN ISSUED.EXP.San Juan Capistrano, CA 92675 32332 Camino Capistrano #205, RRM DESIGN GROUP(949) 361-7950# CITY OF WILDOMAR27 ACRE PARKVertical Datum: Elevations are basedon NAVD88 as derived locally by GPSobservations. Temporary benchmarkat PT99 being a 5/8 rebar with plasticcap stamped 'RRM Control' having anelevation of 1462.36'This survey was performed on(11/13/2017) by (RRM Design Group).
CITY OF WILDOMARDaniel A. York, Director of Public Works/Date:ACCEPTANCE AS TO CONFORMANCEWITH APPLICABLE CITY STANDARDS ANDPRACTICES ACCEPTED BY:City Engineer, PE 43212PREPARED BY:
N:\1000\1064-01-RC17-27-Acre-Park\Planning\G.01 75% Construction Drawings\AUTOCAD\CP-1064-01.dwg, RS002, Jul 14, 2023 3:25am, rGuraydin RS002
LOOK OUT POINT
MONUMENTWELCOME SIGN MONUMENTWELCOME SIGN
PLAYGROUND
TIMBER STEPS
SITE PLAN
LA ESTRELLA ST
TRAIL HEAD PARKING LOOK OUT POINTWITH TREES,LANDSCAPING,SEATING AREA,AND INTERPRETIVESIGNAGE
BIO INFILTRATIONBASIN
APN: 376350017
APN: 376350009
OF
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CITY OF WILDOMAR
CC - REGULAR MEETING
CONSENT CALENDAR
Agenda Staff Report # 1.17
Meeting Date: August
9, 2023
SUBJECT:
Software purchase for Placer.ai Analytics Reporting Platform SUBMITTED BY:
Kimberly Davidson
PREPARED BY:
Kimberly Davidson
ACTION:
Authorize the City Manager to execute the Order Form with Placer Labs, Inc. for Placer.ai software.
SUMMARY:
Placer.ai is a powerful economic development software that provides an analytics platform that will help us to understand:
Accurate foot traffic counts and dwell time
True Trade Areas displaying frequent-visitors-density by home and work locations Customers’ demographics, interests, and time spent at relevant locations Where customers are coming from and going to, and the routes they take Benchmarking of Foot Traffic, Market Share, Audiences, and other key metrics Competitive insights
Void Analysis Reports
BACKGROUND:
In past years and in our current budget, we have allocated funds for specific studies to support our economic development goals. For example, we contracted consultants using big data for a Commercial Market Analysis as well as a Hotel Study. We have effectively used those studies over the past several years. Now we would like to reduce consultant reports and internally better target entitled projects and place better unique businesses in those centers.
DISCUSSION:
Having access to this software will allow us to better understand and track retail data, workforce trends and demographics as well as traffic counts on roadways. This software can be accessed by all departments (no limitation on the number of users) and will provide data that we can use to better encourage quality development in Wildomar.
418
FISCAL IMPACT:
The total investment for the three-year subscription is $57,000 and will be offset by a reduction in professional services expenses.
• Year 1 Fees = $15,100
• Year 2 Fees = $17,900
• Year 3 Fees = $24,000
• Additional Terms of 12 months, if any, will be invoiced in full at the start of the Term
ACCOUNT CODE:
100-410-4150-52116
ATTACHMENTS:
1. Placer.ai Agreement
419
1 PLACER LABS, INC.
ORDER FORM
City of Wildomar (“Customer”) Placer Labs, Inc. (“Placer”) Address: 23873 Clinton Keith Road
Wildomar, CA 92595
Address: 440 N Barranca Ave., #1277
Covina, California 91723
Contact Person: Kimberly Davidson Contact Person Chris Duval Email: [email protected] Billing Contact Person: Melissa Anderson Phone: 951-297-3457 Billing Email*: [email protected]
Billing Contact Email: [email protected] Billing Phone*: 415-228-2444 *Not for use for official notices.
1. Services.
The services provided under this Order Form (the “Services”) include:
• Access, via Placer Venue Analytics Platform (“Placer’s Platform”), to all major venues within the United States • Access, via Placer’s Platform, to reports, including Visits, Trade Areas, Customer Journey, Customer Insights, Dwell Times, and Visitation by Hour/Day
• Actionable insights include:
o Accurate foot traffic counts and dwell time
o True Trade Areas displaying frequent-visitors-density by home and work locations o Customers’ demographics, interests, and time spent at relevant locations o Where customers are coming from and going to, and the routes they take o Benchmarking of Foot Traffic, Market Share, Audiences, and other key metrics o Competitive insights
o Void Analysis Reports
• Access to Xtra reports per ad hoc needs; in Excel, KML, Tableau, and other formats: Quarterly Maximum of 26 credits; Annual Maximum of 104 credits
• Premier Customer Support
o Regular meetings with Placer's Customer Success Team
o Live, Virtual Training support as reasonably needed
• Access to STI Demographics Bundle + Mosaic Data Set. The applicable Advanced Demographics and Psychographics are generated using the Input Datasets from the data vendors as set forth below:
Description Input Datasets Used
STI Demographics Bundle
PopStats
Spending Patterns
Workplace
Market Outlook
Experian Mosaic Mosaic Segmentation
2. Permitted Uses
The data, information and materials accessible via the Services are referred to as “Placer Data”. Customer may use Placer Data solely for the following purposes (“Permitted Uses”): (a) Customer may use Placer Data for Customer’s 420
CON-019740 2
internal business purposes; and (b) Customer may incorporate Placer Data into Research Data, as described and subject to the restrictions below.
“Research Data” means datasets and other materials created by Customer that result in any part from Customer’s use of Placer Data. The Customer may share Research Data with current and potential customers, and in marketing materials; provided that the Customer shall cite Placer as a provider of s uch information (for such purpose only, Placer grants Customer the rights to use the Placer.ai name and logo, provided that any such use of the Placer.ai name and logo must clearly indicate that Placer is the provider of data only, and is not involved in any analysis, conclusion, recommendation). Customer shall not, directly or indirectly, resell, distribute, sublicense, display or otherwise provide Placer Data to any third parties, except that Customer may display Placer Data as part of Research Data.
3. Term and Termination.
Initial Term: The initial term of this Order Form will begin as of the last signature date set forth below, and will continue for 36 consecutive months thereafter (the “ Initial Term ”). Each renewal or additional term, if any, is referred to as “Additional Term,” and the Initial Term and any Additional Terms are referred to collectively as the “Term.”
Additional Term: Following expiration of the Initial Term, this Order Form shall be automatically renewed for additional periods of 12 months, unless either party provides written notice of non- renewal at least thirty (30) days prior to the expiration of the then-current term.
Termination: Either party may terminate this Order Form upon thirty (30) days’ notice if the other party materially breaches any of the terms or conditions of this Order Form or the Agreement (as defined below), and the breach remains uncured during such thirty (30) days. In addition, Placer may immediately suspend Customer’s access to the Services, or terminate the Order Form, in the event of non- payment by the Customer or breach by Customer of any restrictions regarding usage of the Services.
4. Fees.
Fees for the 36-month Initial Term are $57,000.
• Year 1 Fees are $15,100 and will be invoiced in full upon signing this Order Form • Year 2 Fees are $17,900 and will be invoiced in full August 2024 • Year 3 Fees are $24,000 and will be invoiced in full August 2025 • Additional Terms of 12 months, if any will be invoiced in full at the start of the Term
Invoice sent electronically to Customer’s billing contact email via NetSuite.
Customer shall pay the fees set forth above in this Order Form.
Unpaid amounts are subject to a finance charge of 1.5% per month on any outstanding balance, or the maximum permitted by law, whichever is lower, plus all expenses of collection.
Customer is responsible for all applicable taxes arising directly from the Services other than U.S. taxes based on Placer’s net income.
If Customer believes that Placer has billed Customer incorrectly, Customer must contact Placer no later than sixty (60) days after the closing date on the first billing statement in which the error or problem appeared in order to receive an adjustment or credit. Inquiries should be directed to Placer’s customer support department at [email protected]. 421
CON-019740 3
In the event of any termination, Customer will pay in full for the Services.
Placer may increase the fees any time following the Initial Term (but not more frequently than once in any twelve (12) month period). The amount of such annual increase will equal the greater of CPI or five percent (5%) per annum.
All billing will be sent via electronic invoice to the Customer contact indicated above. Customer shall pay all fees within thirty (30) days of the invoice date.
5. Support.
Placer will use commercially reasonable efforts to provide customer service and technical support in connection with the Services on weekdays during the hours of 9:00 A.M. through 5:00 P.M. Pacific Time, with the exclusion of federal holidays. For any such support, please contact us at [email protected].
6. Mutual NDA.
Each party (the “Receiving Party”) understands that the other party (the “Disclosing Party”) has disclosed or may disclose business, technical or financial information relating to the Disclosing Party’s business (hereinafter referred to as “Proprietary Information ” of the Disclosing Party). Proprietary Information of Placer includes, without limitation, non -public information regarding features, functionalities and performance of, and pricing for, the Services. The Receiving Party agrees: (i) to take reasonable precautions to protect such Proprietary Information, and (ii) not to use (except in performance of the Services or as otherwise permitted by the Agreement) or disclose to any third party any Proprietary Information. The foregoing shall not apply with respect to any information that the Receiving Party can document (a) is or becomes generally available to the public, (b) was in the possession of or known to the Receiving Party, prior to disclosure thereof by the Disclosing Party, without any restrictions or confidentiality obligations, (c) was rightfully disclosed to it, without any restrictions or confi dentiality obligations, by a third party, (d) was independently developed without use of any Proprietary Information of the Disclosing Party, or (e) is required to be disclosed by law, provided that the Receiving Party provides the Disclosing Party with prompt written notice of such requirement and reasonably cooperates with the Disclosing Party to limit or challenge such requirement. These provisions regarding Proprietary Information shall apply in perpetuity and shall survive any termination of the Order Form or the Agreement.
7. Miscellaneous.
All notices under the Order Form and the Agreement will be in writing and will be deemed to have been duly given (a) upon delivery by a recognized delivery service (e.g., FedEx) with delivery confirmation, (b) upon receipt, if sent by U.S. certified or registered mail, return receipt requested, or (c) when sent via email, if sent during normal business hours of the recipient, and on the next business day if sent after normal business hours of the recipient. Notices shall be sent to the addresses set forth in the Order Form, which addresses may be subsequently modified by written notice given in accordance with these provisions.
Customer grants Placer the right to use Customer’s company name an d company logo, for Placer’s promotional purposes.
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CON-019740 4
This Order Form is entered into by and between Customer and Placer effective as of the date of the last signature below. This Order Form and use of the Services are governed by, and Customer and Placer agree to, the License Agreement located at https://www.placer.ai/placer-license-agreement/ (the “Agreement”); provided, however, that in the event of any conflict between this Order Form and the Agreement, this Order Form shall control. Unless otherwise defined in this Order Form, capitalized terms herein have the same meaning as in the Agreement.
“Customer” “Placer”
City of Wildomar Placer Labs, Inc.
By: \signature1 {“size”: “small” ,"w":"200"}\ By: \signature2 {“size”: “small” ,"w":"200"}\ Name: \fullname1 {“size”: “small” ,"w":"220"}\ Name: \fullname2 {“size”: “small” ,"w":"220"}\ Title: \title1 {“size”: “small” ,"w":"200"}\ Title: \title2 {“size”: “small” ,"w":"200"}\ Date: \date1\ Date: \date2\
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CITY OF WILDOMAR
CC - REGULAR MEETING
CONSENT CALENDAR
Agenda Staff Report # 1.18
Meeting Date: August
9, 2023
SUBJECT:
Professional Services Agreement with TKE Engineering for Engineering and Design Services for the Clinton Keith Rd.
Widening Project (CIP 025-1)
SUBMITTED BY:
Jason Farag
PREPARED BY:
Jason Farag
ACTION:
Authorize the City Manager to execute a Professional Services Agreement in the amount of $500,000 with TKE Engineering for engineering and design services for the Clinton Keith Rd.
Widening Project (CIP 025-1).
SUMMARY:
Staff is pursuing the updating and revision of the construction plans, specifications, and cost estimates (PS&E) previously prepared for the Clinton Keith Rd. Widening Project, in preparation of the construction of the Project from the I-15 Freeway east to Copper Craft Drive. At the request of staff, TKE submitted a proposal to perform the required PS&E services.
BACKGROUND:
The City previously entered into a Consultant Services Agreement with URS Corporation on March 13, 2013, for the preparation of plans, specifications, and estimates (PS&E) and environmental permitting for the Clinton Keith Rd. Widening Project (Project), from the I-15 Freeway to Copper Craft Dr., just east of the City limits. URS completed the PS&E in 2015 and estimated the construction cost of the project at $7,810,000. Clinton Keith Rd. is a TUMF eligible and funded facility, however there are insufficient TUMF funds allocated to the road to build the entire Project. As a result, the City has been unable to move forward with construction.
In an effort to provide some additional roadway capacity on Clinton Keith Rd., the City began the process of phasing the Project to build four lanes and bike lanes with the funding available.
However, in April 2023, the City applied for construction funds from the Riverside County 424
Transportation Commission (RCTC) for the full construction of the Project as designed in 2015.
DISCUSSION:
The City was successful in its application for construction funding from RCTC and is now able to move forward to construct the complete Project, not just an initial phase.
Since the completion of the PS&E in 2015, conditions have changed on Clinton Keith Rd. with the construction of new development and new improvements. In addition, some road standards and design considerations have changed. These necessitate an update to the previously prepared PS&E.
The City's prior contract with URS Corporation is no longer active. Therefore, staff requested a proposal from one of the City's on-call engineering consultants, TKE Engineering (TKE) for the preparation and completion of PS&E for the Project. The City has an active contract with TKE, dated October 14, 2020.
TKE has done prior work for the Project. Before being awarded RCTC funds, while the City was planning to phase the Project, TKE prepared an updated topographic survey at the City's request to reflect changed conditions on the roadway since the completion of the 2015 plans.
TKE also provides contract traffic engineering services to the City and is very familiar with the City's standards and practices and with Clinton Keith Rd. in particular, having reviewed several proposed development projects along the corridor. In addition, TKE has successfully prepared PS&E documents for the City for other Capital Improvement Projects. For these reasons, it was determined that it would be more efficient and cost effective for the City to request that TKE, as an on-call engineering consultant for the City, complete the PS&E for the Project in-lieu of advertising a formal Request for Proposals (RFP).
Anticipated updates to the PS&E include, but may not be limited to, updating the plans to reflect current conditions, current design standards, modifications to the water quality design, modifications to the striping to accommodate bike lanes, expansion of the project to extend to the I-15 Freeway for street rehabilitation, and evaluation of additional road widening between Carrington St. and Copper Craft Dr. to accommodate six lanes in the future. Additional services to be included in the PS&E preparation include right-of-way and environmental permitting support services. A copy of TKE's proposal for the requested services is included as Exhibit "A" of the proposed Professional Services Agreement, included as Attachment A of this staff report. The total cost for TKE's proposal is not to exceed $500,000.
Staff recommends that the City Council authorize the City Manager to execute the Professional Services Agreement with TKE Engineering for engineering and design services for the Clinton Keith Rd. Widening Project.
FISCAL IMPACT:
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Funding for these services will be covered by the approved Capital Improvement Program budget for FY 2023-2024, as approved by the City Council, using TUMF funds available for Clinton Keith Rd. No additional funds are needed at this time.
There is no impact to the General Fund.
ACCOUNT CODE:
Project: CIP 025-1
Fund No: 503-913-0001-52115
ATTACHMENTS:
A - Professional Services Agreement
426
// 2021
RIV #4814-7282-0706 v1
AGREEMENT FOR SERVICES
By and Between
THE CITY OF WILDOMAR,
a municipal corporation
and
TKE ENGINEERING, INC.,
a California corporation
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AGREEMENT FOR SERVICES
BETWEEN
THE CITY OF WILDOMAR, CALIFORNIA
AND
TKE ENGINEERING, INC.
This Agreement for Services (“Agreement”) is entered into as of this 9th day of August, 2023 by and between the City of Wildomar, a municipal corporation (“City”) and TKE Engineering, Inc., a California corporation (“Service Provider”). City and Service Provider are sometimes hereinafter individually referred to as “Party” and hereinafter collectively referred to as the “Parties.”
RECITALS
A. On October 14, 2020, City entered into an Agreement for Services with Service Provider for on-call engineering services.
B. City has sought from Service Provider , by direct negotiation , the performance of the services defined and described particularly in Section 2 of this Agreement.
C. Service Provider, following submission of a proposal for the performance of the services defined and described particularly in Section 2 of this Agreeme nt, was selected by the City to perform those services.
D. Pursuant to the City of Wildomar’s Municipal Code, City has authority to enter into this Services Agreement and the City Manager has authority to execute this Agreement.
E. The Parties desire to formalize the selection of Service Provider for performance of those services defined and described particularly in Section 2 of this Agreement and desire that the terms of that performance be as particularly defined and described herein.
OPERATIVE PROVISIONS
NOW, THEREFORE, in consideration of the mutual promises and covenants made by the Parties and contained here and other consideration, the value and adequacy of which are hereby acknowledged, the Parties agree as follows:
SECTION 1. TERM OF AGREEMENT.
Subject to the provisions of Secti on 20 "Termination of Agreement" of this Agreement, the Term of this Agreement is for three (3) years commencing on the date first ascribed above.
SECTION 2. SCOPE OF SERVICES & SCHEDULE OF PERFORMANCE. 428
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(a) Scope of Services . Service Provider agrees to perform the serv ices set forth in Exhibit “A” “Scope of Services” (hereinafter, the “Services”) and made a part of this Agreement by this reference.
(b) Schedule of Performance. The Services shall be completed pursuant to the schedule specified in Exhibit “A.” Should the Services not be completed pursuant to that schedule, the Service Provider shall be deemed to be in Default of this Agreement. The City, in its sole discretion, may choose not to enforc e the Default provisions of this Agreement and may instead allow Service Provider to continue performing the Services.
SECTION 3. ADDITIONAL SERVICES.
Service Provider shall not be compensated for any work rendered in connection with its performance of this Agreement that are in addition to or outside of the Services unless such additional services are authorized in advance and in writing in accordance with Section 26 “Administration and Implementation” or Section 28 “Amendment” of this Agreement. If and when such additional work is authorized, such additional work shall be deemed to be part of the Services.
SECTION 4. COMPENSATION AND METHOD OF PAYMENT.
(a) Subject to any limitations set forth in this Agreement, City agrees to pay Service Provider the amounts specified in Exhibit “B” “Compensation” and made a part of this Agreement by this reference. T he total compensation, including reimbursement for actual expenses, shall not exceed Five Hundred Thousand dollars ($500,000), unless additional compensation is approved in writing in accordance with Section 26 “Administration and Implementation” or Sectio n 28 “Amendment” of this Agreement. In accordance with California Government Code Section 8546.7, if the Not to Exceed Amount exceeds TEN THOUSAND DOLLARS ($10,000.00), this Agreement and the Service Provider's books and records related to this Agreement shall be subject to the examination and audit of the State Auditor, at the request of City or as part of any audit of the City, for a period of three (3) years after final payment under the Agreement. (b) Each month Service Provider shall furnish to City an original invoice for all work performed and expenses incurred during the preceding month. The invoice shall detail charges by the following categories: labor (by sub -category), travel, materials, equipment, supplies, and sub-Service Provider contracts. Sub-Service Provider charges shall be detailed by the following categories: labor, travel, materials, equipment and supplies. If the compensation set forth in subsection (a) and Exhibit “B” include payment of labor on an hourly basis (as opposed to labor and materials being paid as a lump sum), the labor category in each invoice shall include detailed descriptions of task performed and the amount of time incurred for or allocated to that task. City shall independently review each invoice submitted by the Service Provider to determine whether the work performed and expenses incurred are in compliance with the provisions of this Agreement. In the event that no charges or expenses are disputed, the invoice shall be approved and paid according to the terms set forth in subsection (c). In the event any charges or expenses are disputed by City, the original invoice shall be returned by City to Service Provider for correction and resubmission.
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(c) Except as to any charges for work performed or expenses incur red by Service Provider which are disputed by City, City will use its best efforts to cause Service Provider to be paid within forty-five (45) days of receipt of Service Provider’s correct and undisputed invoice.
(d) Payment to Service Provider for work performed pursuant to this Agreement shall not be deemed to waive any defects in work performed by Service Provider.
SECTION 5. INSPECTION AND FINAL ACCEPTANCE.
City may inspect and accept or reject any of Service Provider’s work under this Agreement, either during perform ance or when completed. City shall reject or finally accept Service Provider’s work within sixty (60) days after submitted to City. City shall reject work by a timely written explanation, otherwise Service Provider’s work shall be deemed to have been accepted. City’s acceptance shall be conclusive as to such work except with respect to latent defects, fraud and such gross mistakes as amount to fraud.
Acceptance of any of Service Provider’s work by City shall not constitute a waiver of any of the provisi ons of this Agreement including, but not limited to, Section 16 “Indemnification” and Section 17 “Insurance.”
SECTION 6. OWNERSHIP OF DOCUMENTS.
All original maps, models, designs, drawings, photographs, studies, surveys, reports, data, notes, computer files, files a nd other documents prepared, developed or discovered by Service Provider in the course of providing the Services pursuant to this Agreement shall become the sole property of City and may be used, reused or otherwise disposed of by City without the permissi on of the Service Provider. Upon completion, expiration or termination of this Agreement, Service Provider shall turn over to City all such original maps, models, designs, drawings, photographs, studies, surveys, reports, data, notes, computer files, files and other documents.
If and to the extent that City utilizes for any purpose not related to this Agreement any maps, models, designs, drawings, photographs, studies, surveys, reports, data, notes, computer files, files or other documents prepared, develo ped or discovered by Service Provider in the course of providing the Services pursuant to this Agreement, Service Provider’s guarantees and warranties in Section 9 “Standard of Performance” of this Agreement shall not extend to such use of the maps, models , designs, drawings, photographs, studies, surveys, reports, data, notes, computer files, files or other documents.
All Final Work Product developed by Service Provider in the course of providing the Services pursuant to this Agreement shall become the sole property of City and may be used, reused or otherwise disposed of by City without the permission of the Service Provider. Upon completion, expiration or termination of this Agreement, Service Provider shall turn over to City all such Final Work Product if paid for by the City. This provision specifically excludes Service Providers’ work notes and drafts, which are owned by Service Provider, not City.
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SECTION 7. SERVICE PROVIDER'S BOOKS AND RECORDS.
(a) Service Provider shall maintain any and all documents and records demonstrating or relating to Service Provider’s performance of the Services. Service Provider shall maintain any and all ledgers, books of account, invoices, vouchers, canceled checks, or other documents or records evidencing or relating to work, services, expenditures and disbursements charged to City pursuant to this Agreement. Any and all such documents or records shall be maintained in accordance with generally accepted accounting principles and shall be sufficiently complete and detailed so a s to permit an accurate evaluation of the services provided by Service Provider pursuant to this Agreement. Any and all such documents or records shall be maintained for three (3) years from the date of execution of this Agreement and to the extent requir ed by laws relating to audits of public agencies and their expenditures. (b) Any and all records or documents required to be maintained pursuant to this section shall be made available for inspection, audit and copying, at any time during regular business hours, upon request by City or its designated representative. Copies of such documents or records shall be provided directly to the City for inspection, audit and copying when it is practical to do so; otherwise, unless an alternative is mutually agreed upon, such documents and records shall be made available at Service Provider’s address indicated for receipt of notices in this Agreement.
(c) Where City has reason to believe that any of the documents or records required to be maintained pursuant to this section m ay be lost or discarded due to dissolution or termination of Service Provider’s business, City may, by written request, require that custody of such documents or records be given to the City. Access to such documents and records shall be granted to City, as well as to its successors -in-interest and authorized representatives.
SECTION 8. INDEPENDENT CONTRACTOR.
(a) Service Provider is and shall at all times remain a wholly independent contractor and not an officer, employee or agent of City. Nothing in this Agreement may be construed to be inconsistent with this relationship or status. Service Provider shall not at any time or in any manner represent that it or any of its agents or employees are agents or employees of City. Service Provider shall have no authority to bind City in any manner, nor to incur any obligation, debt or liability of any kind on behalf of or against City, whether by contract or otherwise, unless such authority is expressly conferred under this Agreement or is otherwise expressly conferred in writing by City. (b) Service Provider shall perform all Services as an independent contractor of City and shall remain at all times as to City a wholly independent contractor with only such obligations as are consistent with that role. Service provider shall be so lely responsible for the means, methods, techniques, sequences and procedures in performance of Services. The personnel performing the Services under this Agreement on behalf of Service Provider shall at all times be under Service Provider’s exclusive dir ection and control. Any terms within this Agreement regarding City directives apply to an concern the result of Service Provider’s provision of service and not the means, methods, or 431
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scheduling of the Service Provider’s work. Neither City, nor any electe d or appointed boards, officers, officials, employees or agents of City, shall have control over the conduct of Service Provider or any of Service Provider’s officers, employees, or agents except as set forth in this Agreement. Service Provider shall not at any time or in any manner represent that Service Provider or any of Service Provider’s officers, employees, or agents are in any manner officials, officers, employees or agents of City. (c) Neither Service Provider, nor any of Service Provider’s officers, employees or agents, shall obtain any privileges or rights to retirement, health care or any other benefits which may otherwise accrue to City’s employees. Service Provider expressly waives any claim Service Provider may have to any such benefits, privileges or rights.
SECTION 9. STANDARD OF PERFORMANCE.
Service Provider represents and warrants that it has the qualifications, experience and facilities necessary to properly perform the Services required under this Agreement in a thorough, competent and professional man ner. Service Provider shall at all times faithfully, competently and to the best of its ability, experience and talent, perform all Services. In meeting its obligations under this Agreement, Service Provider shall employ, at a minimum, generally accepted standards and practices utilized by persons engaged in providing services similar to the Services required of Service Provider under this Agreement. In addition to the general standards of performance set forth this section, additional specific standards of performance and performance criteria may be set forth in Exhibit “A” “Scope of Work” that shall also be applicable to Service Provider’s work under this Agreement. Where there is a conflict between a general and a specific standard of performance or performance criteria, the specific standard or criteria shall prevail over the general.
SECTION 10. COMPLIANCE WITH APPLICABLE LAWS; PERMITS AND LICENSES.
Service Provider shall keep itself informed of and comply with all applicable federal, state and local laws, statu tes, codes, ordinances, regulations and rules in effect during the term of this Agreement. Service Provider shall obtain any and all licenses, permits and authorizations necessary to perform the Services set forth in this Agreement.
Neither City, nor any elected or appointed boards, officers, officials, employees or agents of City, shall be liable, at law or in equity, as a result of any failure of Service Provider to comply with this section.
SECTION 11. PREVAILING WAGE LAWS
It is the understanding of City and Service Provider that California prevailing wage laws do not apply to this Agreement because the Agreement does not involve any of the following services subject to prevailing wage rates pursuant to the California Labor Code or regulations promulgated thereunde r: Construction, alteration, demolition, installation, or repair work performed on public buildings, facilities, streets or sewers done under contract and paid for in whole or in part out of public funds. In this context, “construction" includes work perf ormed during the design and preconstruction phases of construction including, but not limited to, inspection and land surveying work. 432
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SECTION 12. NONDISCRIMINATION.
Service Provider shall not discriminate, in any way, against any person on the basis of race, color, religious creed, national origin, ancestry, sex, age, physical handicap, medical condition or marital status in connection with or related to the performance of this Agreement.
SECTION 13. UNAUTHORIZED ALIENS.
Service Provider hereby promises and agrees to comply with a ll of the provisions of the Federal Immigration and Nationality Act, 8 U.S.C.A. §§ 1101, et seq., as amended, and in connection therewith, shall not employ unauthorized aliens as defined therein.
Should Service Provider so employ such unauthorized aliens for the performance of the Services, and should the any liability or sanctions be imposed against City for such use of unauthorized aliens, Service Provider hereby agrees to and shall reimburse City for the cost of all such liabilities or sanctions imposed, together with any and all costs, including attorneys' fees, incurred by City.
SECTION 14. CONFLICTS OF INTEREST.
(a) Service Provider covenants that neither it, nor any officer or principal of its firm, has or shall acquire any interest, directly or indirectly, which wo uld conflict in any manner with the interests of City or which would in any way hinder Service Provider’s performance of the Services. Service Provider further covenants that in the performance of this Agreement, no person having any such interest shall b e employed by it as an officer, employee, agent or subcontractor without the express written consent of the City Manager. Service Provider agrees to at all times avoid conflicts of interest or the appearance of any conflicts of interest with the interests of City in the performance of this Agreement.
(b) City understands and acknowledges that Service Provider is, as of the date of execution of this Agreement, independently involved in the performance of non-related services for other governmental agencies and p rivate parties. Service Provider is unaware of any stated position of City relative to such projects. Any future position of City on such projects shall not be considered a conflict of interest for purposes of this section. (c) City understands and acknowledges that Service Provider will perform non- related services for other governmental agencies and private Parties following the completion of the Services under this Agreement. Any such future service shall not be considered a conflict of interest for purposes of this section.
SECTION 15. CONFIDENTIAL INFORMATION; RELEASE OF INFORMATION. (a) All information gained or work product produced by Service Provider in performance of this Agreement shall be considered confidential, unless such information is in the public domain or already known to Service Provider. Service Provider shall not release or disclose any such information or work product to persons or entities other than City without prior written authorization from the City Manager, except as may be required by law.
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(b) Service Provider, its officers, employees, agents or subcontractors, shall not, without prior written authorization from the City Manager or unless requested by the City Attorney of City, voluntarily provide declarations, letters of support, testimon y at depositions, response to interrogatories or other information concerning the work performed under this Agreement. Response to a subpoena or court order shall not be considered "voluntary" provided Service Provider gives City notice of such court order or subpoena.
(c) If Service Provider, or any officer, employee, agent or subcontractor of Service Provider, provides any information or work product in violation of this Agreement, then City shall have the right to reim bursement and indemnity from Service Provider for any damages, costs and fees, including attorney's fees, caused by or incurred as a result of Service Provider’s conduct.
Service Provider shall promptly notify City should Service Provider, its officers, employees, agents or subcontractors, be served with any summons, complaint, subpoena, notice of deposition, request for documents, interrogatories, request for admissions or other discovery request, court order or subpoena from any party regarding this Agreement and the work performed thereund er. City retains the right, but has no obligation, to represent Service Provider or be present at any deposition, hearing or similar proceeding. Service Provider agrees to cooperate fully with City and to provide City with the opportunity to review any r esponse to discovery requests provided by Service Provider. However, this right to review any such response does not imply or mean the right by City to control, direct, or rewrite said response. Service Provider shall not be held criminally or civilly lia ble under any Federal or State trade secret law for the disclosure of a trade secret that is made in confidence to a Federal, State, or local government official or to an attorney solely for the purpose of reporting or investigating a suspected violation of law or for the disclosure of a trade secret that is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal.
SECTION 16. INDEMNIFICATION.
(a) Indemnification for Professional Liability. Where the law establish es a professional standard of care for Service Provider’s services, to the fullest extent permitted by law, Service Provider shall indemnify, protect, defend and hold harmless City and any and all of its officials, employees and agents (“Indemnified Partie s”) from and against any and all liability (including liability for claims, suits, actions, arbitration proceedings, administrative proceedings, regulatory proceedings, losses, expenses or costs of any kind, whether actual, alleged or threatened, including attorney’s fees and costs, court costs, interest, defense costs, and expert witness fees) arise out of, are a consequence of, or are in any way attributable to, in whole or in part, any negligent or wrongful act, error or omission of Service Provider, or by any individual or entity for which Service Provider is legally liable, including but not limited to officers, agents, employees or sub-contractors of Service Provider, in the performance of professional services under this Agreement.
(b) Indemnification for Other than Professional Liability. Other than in the performance of professional services and to the full extent permitted by law, Service 434
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Provider shall indemnify, protect, defend and hold harmless City, and any and all of its employees, officials and agents from and against any liability (including liability for claims, suits, actions, arbitration proceedings, administrative proceedings, regulatory proceedings, losses, expenses or costs of any kind, whether actual, alleged or threatened, including attorney’s fees and costs, court costs, interest, defense costs, and expert witness fees), where the same arise out of, are a consequence of, or are in any way attributable to, in whole or in part, the performance of this Agreement by Service Provider, or by any individual or entity for which Service Provider is legally liable, including but not limited to officers, agents, employees or sub-contractors of Service Provider. (c) Indemnification from Sub -Service Providers. Service Provider agrees to obtain executed indemnity agreements with provisions identical to those set forth in this section from each and every sub-Service Provider or any other person or entity involved by, for, with or on behalf of Service Provider in the performance of this Agreement naming the Indemnified Parties as additional indemnitees. In the event Service Provider fails to obtain such indemnity obligations from others as required herein, Service Provider agrees to be fully responsible according to the terms of this sec tion. Failure of City to monitor compliance with these requirements imposes no additional obligations on City and will in no way act as a waiver of any rights hereunder. This obligation to indemnify and defend City as set forth herein is binding on the successors, assigns or heirs of Service Provider and shall survive the termination of this Agreement or this section. (d) City’s Negligence . The provisions of this section do not apply to claims occurring as a result of City’s sole negligence. The provisio ns of this section shall not release City from liability arising from gross negligence or willful acts or omissions of City or any and all of its officials, employees and agents.
SECTION 17. INSURANCE.
Service Provider agrees to obtain and maintain in full force and effect during the term of this Agreement the insurance policies set forth in Exhibit “C” “Insurance” and made a part of this Agreement. All insurance policies shall be subject to approval by City as to form and content. These requirements are subject to amendment or waiver if so approved in writing by the City Manager. Service Provider agrees to provide City with copies of required policies upon request.
SECTION 18. ASSIGNMENT.
The expertise and experience of Service Provider are material considerations for this Agreement. City has an interest in the qualifications and capability of the persons and entities who will fulfill the duties and obligations imposed upon Service Provider under this Agreement. In recognition of that interest, Service Provider shall not ass ign or transfer this Agreement or any portion of this Agreement or the performance of any of Service Provider’s duties or obligations under this Agreement without the prior written consent of the City. Any attempted assignment shall be ineffective, null a nd void, and shall constitute a material breach of this Agreement entitling City to any and all remedies at law or in equity, including termination of this Agreement pursuant to Section 20 “Termination of Agreement.” City acknowledges, however, that Servi ce Provider, in the 435
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performance of its duties pursuant to this Agreement, may utilize sub-contractors.
SECTION 19. CONTINUITY OF PERSONNEL.
Service Provider shall make every reasonable effort to maintain the stability and continuity of Service Provider’s staff and sub-contractors, if any, assigned to perform the Services. Service Provider shall notify City of any changes in Service Provider’s staff and sub-contractors, if any, assigned to perform the Services prior to and during any such performance.
SECTION 20. TERMINATION OF AGREEMENT.
(a) City may terminate this Agreement, with or without cause, at any time by giving thirty (30) days written notice of termination to Service Provider. In the event such notice is given, Service Provider shall cease immediately all work in progress. (b) Service Provider may terminate this Agreement for cause at any time upon thirty (30) days written notice of termination to City. (c) If either Service Provider or City fail to perform any material obligation under this Agreement, then, in addition to any other remedies, either Service Provider, or City may terminate this Agreement immediately upon written notice. (d) Upon termination of this Agreement by either Service Provider or City, all property belonging exclusively to City which is in Service Provider’s posse ssion shall be returned to City. Service Provider shall furnish to City a final invoice for work performed and expenses incurred by Service Provider, prepared as set forth in Section 4 “Compensation and Method of Payment” of this Agreement. This final in voice shall be reviewed and paid in the same manner as set forth in Section 4 “Compensation and Method of Payment” of this Agreement.
SECTION 21. DEFAULT.
In the event that Service Provider is in default under the terms of this Agreement, the City shall not have any obligation or duty to continue compensating Service Provider for any work performed after the date of default. Instead, the City may give notic e to Service Provider of the default and the reasons for the default. The notice shall include the timeframe in which Service Provider may cure the default. This timeframe is presumptively thirty (30) days, but may be extended, though not reduced, if circumstances warrant. During the period of time that Service Provider is in default, the City shall hold all invoices and shall, when the default is cured, proceed with payment on the invoices. In the alternative, the City may, in its sole discretion, elec t to pay some or all of the outstanding invoices during the period of default. If Service Provider does not cure the default, the City may take necessary steps to terminate this Agreement under Section 20 “Termination of Agreement.” Any failure on the pa rt of the City to give notice of the Service Provider’s default shall not be deemed to result in a waiver of the City’s legal rights or any rights arising out of any provision of this Agreement. 436
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SECTION 22. EXCUSABLE DELAYS.
Service Provider shall not be liable for da mages, including liquidated damages, if any, caused by delay in performance or failure to perform due to causes beyond the control of Service Provider. Such causes include, but are not limited to, acts of God, acts of the public enemy, acts of federal, state or local governments, acts of City, court orders, fires, floods, epidemics, strikes, embargoes, and unusually severe weather. The term and price of this Agreement shall be equitably adjusted for any delays due to such causes.
SECTION 23. COOPERATION BY CITY.
All public information, data, reports, records, and maps as are existing and available to City as public records, and which are necessary for carrying out the Services shall be furnished to Service Provider in every reasonable way to facilitate, without undue delay, the Services to be performed under this Agreement.
SECTION 24. NOTICES.
All notices required or permitted to be given under this Agreement shall be in writing and shall be personally delivered, or sent by telecopier or certified mail, postage prepaid and return receipt requested, addressed as follows:
To City: City of Wildomar
Attn: City Manager
23873 Clinton Keith Rd., Suite 201
Wildomar, CA 92595
To Service Provider: TKE Engineering, Inc.
Attn: Terry Renner, Senior Vice President
2305 Chicago Ave.
Riverside, CA 92507
Notice shall be deemed effective on the date personally delivered or transmitted by facsimile or, if mailed, three (3) days after deposit of the same in the custody of the United States Postal Service.
SECTION 25. AUTHORITY TO EXECUTE.
Each of the signatories hereto represents and warrants that he or she is competent and authorized to enter into this Agreement on behalf of the Party for whom he or she purports to sign. Each Party hereto agrees to defend, indemnify, and hold harmless the other Parties hereto against all claims, suits, actions, and demands, including necessary expenses of investigation and reasonable attorneys' fees and costs, arising out of claims that its signatory was not competent or so authorized to execute this Agreement. 437
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SECTION 26. ADMINISTRATION AND IMPLEMENTATION.
This Agreement shall be administered and executed by the City Manager or his or her designated representative. The City Manager shall have the authority to issue interpretations and to make amendments to this Agreement, including amendments that commit additional funds, consistent with Section 28 “Amendment” and the City Manager’s contracting authority under the Wildomar Municipal Code.
SECTION 27. BINDING EFFECT.
This Agreement shall be binding upon the heirs, executors, administrators, successors and assigns of the Parties.
SECTION 28. AMENDMENT.
No amendment to or modification of this Agreement shall be valid unless made in writing and approved by the Service Provider and by the City. The City Manager shall have the authority to approve any amendment to this Agreement if the total compensation under this Agreement, as amended, would not exceed the City Manager’s contracting authority under the Wildomar Municipal Code. The Parties agree that the requirement for written modifications cannot be waived and that any attempted waiver shall be void. The City’s City Manager may, but is not required to, make minor amendments not affecting substantive terms without further authorization from the City Council. The City Council hereby authorizes the City Manager to execute any such amendments as required by this Agreement or that do not otherwise reduce City’s rights under this Agreement. All other amendments shall be approved by the City Council.
SECTION 29. WAIVER.
Waiver by any Party to this Agreement o f any term, condition, or covenant of this Agreement shall not constitute a waiver of any other term, condition, or covenant. Waiver by any Party of any breach of the provisions of this Agreement shall not constitute a waiver of any other provision nor a waiver of any subsequent breach or violation of any provision of this Agreement. Acceptance by City of any work or services by Service Provider shall not constitute a waiver of any of the provisions of this Agreement.
SECTION 30. LAW TO GOVERN; VENUE.
This Agreement shall be interpreted, construed and governed according to the laws of the State of California. In the event of litigation between the Parties, venue in state trial courts shall lie exclusively in the County of Riverside, California. In the event of litigation in a U.S. District Court, venue shall lie exclusively in the Central District of California, in Riverside.
SECTION 31. ATTORNEYS FEES, COSTS AND EXPENSES.
In the event litigation or other proceeding is required to enforce or interpret any provision of this Agreement, the prevailing Party in such litigation or other proceeding 438
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shall be entitled to an award of reasonable attorney's fees, costs and expenses, in addition to any other relief to which it may be entitled.
SECTION 32. ENTIRE AGREEMENT.
This Agreement, including the attached Exhibits "A" through "C", is the entire, complete, final and exclusive expression of the Parties with respect to the matters addressed therein and supersedes all other agreements or understandings, whether oral or written, or entered into between Service Provider and City prior to the execution of this Agreement. No statements, representations or other agreements, whether oral or written, made by any Party which are not embodied herein shall be valid and binding.
SECTION 33. SEVERABILITY.
If any term, condition or covenant of this Agreement is declared or determined by any court of competent jurisdiction to be invalid, void or unenforceable, the remaini ng provisions of this Agreement shall not be affected thereby and the Agreement shall be read and construed without the invalid, void or unenforceable provision(s).
SECTION 34. CONFLICTING TERMS.
Except as otherwise stated herein, if the terms of this Agreement confli ct with the terms of any Exhibit hereto, or with the terms of any document incorporated by reference into this Agreement, the terms of this Agreement shall control.
IN WITNESS WHEREOF, the Parties hereto have executed this Agreement on the date and year first-above written.
CITY OF WILDOMAR
___________________________
Daniel A. York
City Manager
ATTEST:
___________________________
Janet Morales, CMC
City Clerk
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APPROVED AS TO FORM
_______________________________
Thomas D. Jex
City Attorney
___________________________________
“Service Provider”: TKE ENGINEERING, INC.
By: __________________________ By: _______________________________
Name: Michael Thornton Name: Terry Renner
Its (Title): President Its (Title): Senior Vice President, Treasurer NOTE: SERVICE PROVIDER’S SIGNATURES SHALL BE DULY NOTARIZED,
AND APPROPRIATE ATTESTATIONS SHALL BE INCLUDED AS MAY
BE REQUIRED BY THE BYLAWS, ARTICLES OF INCORPORATION,
OR OTHER RULES OR REGULATIONS APPLICABLE TO SERVICE
PROVIDER’S BUSINESS ENTITY.
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CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.
STATE OF CALIFORNIA
COUNTY OF ________________
On ______________, before me, ________________, personally appeared ________________, proved to me on the basis of satisfactory evidence to be the person(s) whose names(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the l aws of the State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature: _____________________________________
Signature of Notary Public Place Notary Seal Above
OPTIONAL
Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form.
CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT
INDIVIDUAL
CORPORATE OFFICER
_______________________________
TITLE(S)
PARTNER(S) LIMITED
GENERAL
ATTORNEY-IN-FACT
TRUSTEE(S)
GUARDIAN/CONSERVATOR
OTHER____________________________
SIGNER IS REPRESENTING:
(NAME OF PERSON(S) OR ENTITY(IES))
_________________________________________
_________________________________________
___________________________________
TITLE OR TYPE OF DOCUMENT
___________________________________
NUMBER OF PAGES
___________________________________
DATE OF DOCUMENT
___________________________________
SIGNER(S) OTHER THAN NAMED ABOVE
441
RIV #4814-7282-0706 v1
CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.
STATE OF CALIFORNIA
COUNTY OF ________________
On ______________, before me, ________________, personally appeared ________________, proved to me on the basis of satisfactory evidence to be the person(s) whose names(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature: _____________________________________
Signature of Notary Public Place Notary Seal Above
OPTIONAL
Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form.
CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT
INDIVIDUAL
CORPORATE OFFICER
_______________________________
TITLE(S)
PARTNER(S) LIMITED
GENERAL
ATTORNEY-IN-FACT
TRUSTEE(S)
GUARDIAN/CONSERVATOR
OTHER____________________________
SIGNER IS REPRESENTING:
(NAME OF PERSON(S) OR ENTITY(IES))
_________________________________________
_________________________________________
___________________________________
TITLE OR TYPE OF DOCUMENT
___________________________________
NUMBER OF PAGES
___________________________________
DATE OF DOCUMENT
___________________________________
SIGNER(S) OTHER THAN NAMED ABOVE
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EXHIBIT "A"
SCOPE OF SERVICES
Note: In the event there are any conflicts between the terms of this Agreement and the terms of the attached scope of services prepared by Service Provider, the language in this Agreement shall control.
I. Service Provider will perform the following Services:
A. Per the attached “Proposal to Provide Design Services for the Clinton Keith Road Widening Project from the I -15 Freeway to the Easterly City Limits (CIP 025-1)”
II. As part of the Services, Service Provider will prepare and deliver the following tangible work products to the City:
A. Per the attached “Proposal to Provide Design Services for the Clinton Keith Road Widening Project from the I -15 Freeway to the Easterly City Limits (CIP 025-1)”
III. During performance of the Services, Service Provider will keep the City appraised of the status of performance by delivering the following status reports:
A. Per the attached “Proposal to Provide Design Services for the Clinton Keith Road Widening Project from the I-15 Freeway to the Easterly City Limits (CIP 025-1)”
IV. The tangible work products and status reports will be delivered to the City pursuant to the following schedule:
A. Per the attached “Proposal to Provide Design Services for the Clinton Keith Road Widening Project from the I -15 Freeway to the Easterly City Limits (CIP 025-1)”, or as otherwise agreed to by the City and Service Provider.
V. Service Provider will utilize the following personnel to accomplish the Services:
A. Per the attached “Proposal to Provide Design Services for the Clinton Keith Road Widening Project from the I -15 Freeway to the Easterly City Limits (CIP 025-1)”
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VI. Service Provider will utilize the following subcontractors to accomplish the Services:
A. Per the attached “Proposal to Provide Design Services for the Clinton Keith Road Widening Project from the I -15 Freeway to the Easterly City Limits (CIP 025-1)”
444
July 28, 2023
Jason Farag, P.E.
Director of Public Works
CITY OF WILDOMAR
23873 Clinton Keith Road, Suite 201
Wildomar, CA 92595
Subject: Proposal to Provide Design Services for the Clinton Keith Road Widening Project from the I-15 Freeway to the Easterly City Limits (CIP 025-1)
Dear Mr. Farag:
TKE Engineering, Inc. (TKE) is pleased to provide a proposal for professional engineering services to the City of Wildomar (City). The City desires to retain professional engineering services for preparation of street widening, pavement rehabilitation, traffic signal modifications, easement acquisition, and bicycle lane and striping modification plans along approximately 1.9 miles of Clinton Keith Road between I-15 Freeway and Copper Craft Drive. The project will require design of the various items throughout the project limits as described below:
• I-15 NB Ramps to Arya Drive: Pavement Rehabilitation and Re-Striping • Arya Drive to Copper Craft Drive: Road Widening to Six Through Lanes, Pavement Rehabilitation, 4 Traffic Signal Modifications and Re-Striping • Carrington Street to Copper Craft Drive : Assess Widening to Determine Methods for Achieving Six Lanes with Possible Alternatives for Pedestrian Access TKE will prepare the plans in a 2 phased approach. T he first phase will be to develop preliminary plan and profiles using the previous design between I-15 and Bridlepath Lane and developing the ultimate design between Bridlepath Lane and Copper Craft Drive. After preliminary plans have been prepared, TKE will meet with the City to determine requirements for completing the plans through 100% and adjust the budget as necessary.
TKE has an outstanding relationship with the City and is extremely familiar with the project area as we have provided topographic survey and base construction drawings for the project limits. We value our relationship with the City and hope to continue our partnership for this project. TKE’s Scope of Services and Fee is presented in the following paragraphs:
Scope of Work
TKE will provide project management and design services in four progressive phases , including plan and estimate reviews at Geometric Alignment (30%) Level Completion, 60% Level Completion, 90% Level Completion and 100% Level Completion and specification reviews at 90% Level Completion and 100% Level Completion. TKE’s scope of services is presented in the following paragraphs:
Task No. 1 – Project Administration
TKE’s Project Manager will be responsible for the entire project team. He will attend all meetings, prepare agendas and corresponding meeting minutes together with collection of signatures for meeting attendees (sign -in sheets). He will meet with the City at 445
Jason Farag, P.E., Director of Public Works
City of Wildomar
Proposal to Provide Design Services for the Clinton Keith Road Widening Project from the I-15 Freeway to the Easterly City Limits (CIP 025-1)
July 28, 2023 Page 2 of 8
appropriate times and will meet as needed with agencies, residents, property owners, and utilities in addition to the meetings presented below. We will also update TKE’s project budget and schedule prior to each City meeting for discussion with staff.
Deliverables: Agendas, Meeting Minutes, Exhibits, and Project Progress, and TKE Budget Updates
Task No. 2 – Preliminary Engineering Services
Sub-Task No. 2.1 – Initial ‘Kick Off’ Meeting
Prior to commencement of services, we propose to meet City staff to review project obligations and to discuss all project requirements in detail. TKE’s Project Manager and Project Engineer will attend the meeting to determine project protocol and obtain City record drawings.
Deliverables: Agenda, Minutes, and Distribution to all Entities Sub-Task No. 2.2 – Records Research
We will thoroughly research existing utility records and acquire copies of all available records. We will notify Underground Service Alert to acquire a complete list of underground utility purveyors. The utility drawings will include existing drawings from the City, and drawings a nd/or atlas maps from all private utility companies, and/or agencies. We will confer and coordinate with the following agencies as well as any additional agencies listed in the Underground Service Alert:
• Elsinore Valley Municipal Water District
• Frontier
• AT&T
• Sprint
• Southern California Gas Company
• Southern California Edison
• Charter/Spectrum
• Time Warner Cable Television
We will send first utility notice letters to all listed utility companies and agencies requesting their data. We will maintain copies of the letters and correspondence for future reference. We shall also provide the City with a complete copy of all correspondence with all utility companies.
Deliverables: Record Data and Utility Information
Sub-Task No. 2.3 – Design Survey
TKE previously completed a conventional design survey of the project area due to the level of detail needed for precise grading design. There are no further anticipated survey needs.
Deliverables: Not Applicable.
Sub-Task No. 2.4 – Base Construction Drawings
446
Jason Farag, P.E., Director of Public Works
City of Wildomar
Proposal to Provide Design Services for the Clinton Keith Road Widening Project from the I-15 Freeway to the Easterly City Limits (CIP 025-1)
July 28, 2023 Page 3 of 8
We will update the base construction drawings already prepared using AutoCAD 2020 software, at a drawing scale of 1”=20’. The base construction drawings have already been prepared to include a plan view based on the accumulated conventional survey data with the sheet north arrow, graphic scale, and existing improvements, property lines, public and private right -of-way, easement areas, assessor parcel numbers, street centerline, street names, building locations, sewer manhole lids and water valve lids; cross gutters; driveways, pedestrian ramps; traffic stripes and legends; curb returns; details of private improvements, fences, gates, irrigation systems, mailboxes, trees and landscaping. We will update the base construction drawings to include utilities per acquired mapping. Once the base drawings are complete, we will perform a careful field review to ensure all underground facilities are shown correctly.
Deliverables: Updated Base Construction Drawings in Plan View Sub-Task No. 2.5 – 30% Design
Using the topographic mapping and previous design plans, TKE will prepare preliminary design concepts between I-15 Freeway and Bridlepath Lane showing horizontal and vertical curb alignments, curb return radii and lane striping along with existing ground surface at centerline and at top of curb. Between Bridlepath Lane and Copper Craft Drive, we will prepare a geometric alignment and preliminary design plan and profiles drawings that will analyze impacts to adjacent properties and developments, impacts to adjacent streets, conveyance of offsite drainage, street drainage, earthwork, utility relocations, slope and temporary construction easements, traffic impacts, constructability reviews and future street improvements.
Preliminary design will be performed to analyze the previous design plans and establish ultimate improvements to m inimize lane shifts and removals of improvements constructed with future projects. The analysis will include preliminary plan and profile drawings identifying potential grading impacts, required modifications, right-of-way acquisition requirements, water quality management alignments and mitigation requirements. TKE will attend one meeting for review and approval of the preliminary engineering analysis with the City to determine cost impacts for completion of the remaining project plans.
Deliverables: Preliminary Design Plans in Plan and Profile View Sub-Task No. 2.6 – Right-of-Way
During the process of right -of-way acquisition, TKE w ill assist the City with right -of- way negotiations. This included preparation of right-of-way exhibits for the appraiser and City personnel to review and negotiate with home owners , attend various field meetings with property owners to review limits of the project grading, removals and reconstruction and prepare legals and plats for right -of-way acquisition, slope and temporary construction easements. Based on our review we anticipate preparation of eight easement documents.
In addition, TKE will be available to assist appraisal team with field staking and meetings with home owners to identify right-of-way acquisition and grading limits.
Deliverables: Deeds, Legals, Plats, and Right-of-Way Exhibits
Task No. 3 – Final Design Engineering Services
447
Jason Farag, P.E., Director of Public Works
City of Wildomar
Proposal to Provide Design Services for the Clinton Keith Road Widening Project from the I-15 Freeway to the Easterly City Limits (CIP 025-1)
July 28, 2023 Page 4 of 8
Sub-Task No. 3.1 – Composite Utility Plan
TKE will prepare a composite utility plan which identifies all existing utilities within the proposed right-of-way and all utilities affected by the proposed street improvements and requiring relocation. The plan shall show all above and below ground util ities including all laterals. The utility plan will be for City use in coordinating with utility companies.
Deliverables: Composite Utility Plan
Sub-Task No. 3.2 – 60% Design
60% Design will include preparation of preliminary construction drawings, preliminary technical specifications, and preliminary construction estimates.
Construction drawings will show proposed street geometrics including locations of proposed asphalt concrete pavement, curb and gutters, sidewalk, ramps, drive approaches, bike lanes and drainage improvements . In addition, preliminary street grades will be prepared to establish project grading requirements. Proposed improvements will be designed in accordance with the City’s current street design standards and specifications. The proposed improvements will be designed to minimize removals, grading and earthwork.
For the drawings, it is anticipated that the project will require preparation of a total of 50 sheets broken down in the following manner: 1-title sheet, 1-construction notes sheet, 6-demolition sheets, 10-plan/profile sheets, 6 pavement rehabilitation sheets, 4-drainage sheets, 4-grading sheets, 4-traffic signal modification sheets, 6-cross- section sheets, 6-signing and striping sheets, and necessary detail sheets.
The title sheet shall include the title of the job, a vicinity map showing the City in relationship to surrounding communities, a location map showing the project limits, a list of abbreviations us ed, benchmark data, general notes, construction notes and quantities, an index for the drawings, list of utilities with phone numbers, and references on the City’s standard title block.
The construction note sheet will show general construction notes and p roject specific requirements.
The demolition sheet will show existing improvement demolition including limits of pavement removal, saw cutting locations and limits and concrete cross gutters and curbs, if required. In addition, the plan will specify relocation of private improvements such as mailboxes fences, drive approaches, etc. as required.
Plan/profile sheets will show proposed improvements at 1”=40’ scale including curb and gutter, sidewalk, ramps, driveways, pavement limits, existing utility rel ocations, water service relocations, and manhole, valve, and vault cover grade adjustments. For the profile portion of the drawings, we will show existing and proposed pavement elevations at centerline top of curb and centerline with appropriate design da ta.
The drainage sheets will be prepared in accordance with City and/or Riverside County Flood Control standards and requirements. The sheet will be prepared at a 1”=20’ scale and will show existing right-of-way, existing utilities, existing right-of-way, curb, 448
Jason Farag, P.E., Director of Public Works
City of Wildomar
Proposal to Provide Design Services for the Clinton Keith Road Widening Project from the I-15 Freeway to the Easterly City Limits (CIP 025-1)
July 28, 2023 Page 5 of 8
gutter, sidewalk, existing utilities, existing drainage improvements and all proposed improvements including catch basins, storm drain pipe, head walls and connections.
Storm drain sheets will show top of pipe, flowline, structures utility crossings and ground surface.
Traffic signal modification sheets will be prepared in accordance with City traffic standards and requirements. The sheet will be prepared at a 1”=20’ scale and will show existing right -of-way, curb, gutter, sidewalk, existing utiliti es, existing traffic signal improvements and all proposed installation including head reconfiguration, phasing, loop placement and conduit placement.
The street cross-sections sheet will show street sections at 200 foot intervals at 1”=8’ scale. The sections will be dimensioned and construction and demolition notes will be shown. In addition, rights -of-way and limits of work will be shown. Elevations shall be labeled up to 10-feet beyond right-of-way at top of curb right-of-way, joint points, grade breaks and centerline points. Cross sections shall show grading limits, cross falls, existing and proposed grades, and cut/fill quantities.
The construction details will include connections and abandonment details, all at appropriate drawing scales.
The signi ng and striping sheets will include all required pavement markings, lane stripes and signage in accordance with the MUTCD, California supplement and all other applicable City requirements, for the project limits. The sheets will be prepared at 1”=40’ scale and include full geometrical layouts at each intersection.
In addition, we will prepare quantity estimates for all proposed improvements prepared using an excel spreadsheet showing an itemized construction cost breakdown. Descriptions of work, unit pric es, and quantities will be included in the spreadsheet.
Deliverables: 60% Design Sheets, Estimates and Pothole Data Sub-Task No. 3.3 – Environmental Compliance
TKE will provide assistance to the City’s environmental compliance consultant for the proposed project. TKE will assist with exhibit preparation and other as needed services for obtaining the required environmental compliance documents and establishing appropriate mitigation factors.
Deliverables: Environmental Compliance Assistance
Sub-Task No. 3.4 – Water Quality Management Plan (Transportation Project)
TKE will develop a Water Quality Management Plan (WQMP) for the proposed transportation project in accordance with the Riverside County Watershed Protection plan guidance for transportation projects. Site size and proposed improvement layouts will determine the type of treatment facility to be used for the WQMP. TKE will perform hydrologic analysis of the site both in existing and proposed conditions to assess the required treatment facility size. We will prepare a WQMP report in accordance with the current versions of the County storm water regulations for review and approval. 449
Jason Farag, P.E., Director of Public Works
City of Wildomar
Proposal to Provide Design Services for the Clinton Keith Road Widening Project from the I-15 Freeway to the Easterly City Limits (CIP 025-1)
July 28, 2023 Page 6 of 8
Deliverables: WQMP for Transportation Projects
Sub-Task No. 3.5 – Coordination with Agencies/Utilities After 60% design is complete, plans will be sent to agencies having facilities in the project areas requesting that they verify their facilities are shown correctly and that they furnish any construction requirements they desire. We will highlight each agency’s facilities and advise each of potential conflicts and relocation requirements. We will request that they respond within two weeks and we will follow up with telephone calls to confirm all agency requirements have been incorporated.
We will document all conferences with utilities and agencies and copy the City via e - mail.
In addition, we will begin permitting process with Riverside County Flood Control, City of Murrieta and Caltrans for review and approval of improvements within their respective ju risdictions. TKE will prepare permit applications, coordinate with appropriate agencies, and track permit progress.
Deliverables: Utility Coordination Matrix and Permit Applications Sub-Task No. 3.6 – 60% Design Review Meeting
After the City has completed its review, we will meet with City staff to acquire Staff’s comments.
Deliverables: Meeting Agenda, Minutes and Final Design Approval Sub-Task 3.7 - Utility Locating
TKE and C Below will perform potholing (including any traffic control) or other investigations as necessary for the entire project. We are estimating a requirement for 10 potholes on the project. We will coordinate with the City to determine the locations where potholing is required to identify the horizontal and vertical positioning of existing utilities along the storm drain alignments.
TKE will provide utility verification services to measure invert elevations of existing water valves, sewer and storm drain manholes and catch basins to be used for evaluation of relocation and connection requirements.
Deliverables – Pothole Log and Record Data
Sub-Task No. 3.8 – 90% Design
90% design will include incorporation of City comments on plans, specifications and estimates for final street design and signing and striping plans.
We will verify that the project will comply with ADA design requirements and that adequate drainage will be achieved.
For the specifications, we will amend the City Standards Technical Provisions as required for the projects. The construction specifications will be prepared in Microsoft Word (2020 Version) format in accordance with City standards. 90% Design and specifications will be submitted with updated project estimates. 450
Jason Farag, P.E., Director of Public Works
City of Wildomar
Proposal to Provide Design Services for the Clinton Keith Road Widening Project from the I-15 Freeway to the Easterly City Limits (CIP 025-1)
July 28, 2023 Page 7 of 8
Deliverables: 90% Design Sheets, Specifications and Estimates Sub-Task No. 3.9 – 90% Design Review Meeting
After the City has completed its review, we will meet with City staff to acquire Staff’s comments.
Deliverables: Meeting Agenda, Minutes and Final Design Approval
Sub-Task No. 3.10 – 100% Design
100% design will include incorporation of City comments, final plans, specifications, and estimates, ready for public bidding. Final documents will include mylars and hard copy specifications with signatures and electronic copies of final documents. 100% Design will be submitted with a project summary memorandum together with an updated project schedule, additional stakeholder meeting summary, and internal plan review documentation.
Deliverables: One (1) Full -Size Mylar of 100% Drawings; Hard Copy of Specifications and Estimate, Electronic Files of Final Plans, Specifications and Estimate Sub-Task No. 3.11 – Final Coordination with Agencies/Utilities After the final drawings are approved by the City, we will again submit them to all agencies/utilities having underground facilities in the project area requesting that they verify their facilities are shown correctly and we will advise them of the project construction schedule and relocation requirements. In addition, we will coordinate final relocation construction prior to project bidding. We will document all meetings and conferences with utilities and agencies.
Deliverables: Utility Coordination Matrix
Task No. 4 – Project Schedule
TKE’s Project Manager will prepare a project design schedule and provide schedule updates monthly to show project status. In addition, we will prepare a construction schedule showing anticipated days required for construction which will be used to determine the number of working days for the project specifications.
Deliverables: Project Design Schedule and Updates and Preparation of Construction Schedule
Task No. 5 – Construction Support
Upon request, TKE shall assist the City with responses to requests for information, addendum preparation, review of shop drawings, submittals, change orders and design changes during construction. TKE will review RFI’s and RFC’s and assist the City with preparing a response as requested. In addition, TKE will perform pe riodic field reviews, as requested by the City, to review the construction progress and quality of work. 451
Jason Farag, P.E., Director of Public Works
City of Wildomar
Proposal to Provide Design Services for the Clinton Keith Road Widening Project from the I-15 Freeway to the Easterly City Limits (CIP 025-1)
July 28, 2023 Page 8 of 8
Deliverables: Review and Response to RFI’s/RFC’s, Shop Drawings, Submittals, Change Orders and Preparation of Addenda
Schedule
TKE will provide design engineering services in accordance with the attached project schedule. TKE is committed to meeting the City’s desired schedule for the project and will be able to complete all design service as required by the City.
Fee
TKE’s not to exceed fee to provide the scope of service described above is shown on the attached fee table breakdown . TKE will invoice monthly in accordance with our attached rate schedule and will not exceed our fee without prior approval from the City.
Again, thank you for the opportunity to submit our proposal to provide professional engineering services. If you have any questions, please contact me at (951) 680-0440.
Sincerely,
Terry Renner, P.E., Q.S.D.
Senior Vice President
TKE ENGINEERING, INC.
Enclosures: Project Schedule
Fee Table Breakdown
452
Subconsultants Total
Task No. Task Hours $ Hours $ Hours $ Hours $ Hours $ Hours $ $ Schedule I
1. Project Administration 40 5,680$ 40 4,400$ -$ -$ 40 2,720$ -$ 12,800$
2. Preliminary Engineering Services
2.1 Initial "Kick Off" Meeting 4 568$ 4 440$ -$ -$ 2 136$ -$ 1,144$
2.2 Records Research -$ 2 220$ 4 420$ 4 400$ 12 816$ -$ 1,856$
2.3 Design Surveying -$ -$ -$ -$ -$ -$ -$
2.4 Base Construction Drawings -$ 8 880$ 24 2,520$ 48 4,800$ -$ -$ 8,200$
2.5 30% Design 8 1,136$ 32 3,520$ 60 6,300$ 120 12,000$ -$ -$ 22,956$
2.6 Right-of-Way 1.) 24 3,408$ 40 4,400$ 64 6,720$ 80 8,000$ -$ 16 3,520$ 26,048$
3. Final Design Engineering Services
3.1 Composite Utility Plan 8 1,136$ 24 2,640$ 32 3,360$ 40 4,000$ -$ -$ 11,136$
3.2 60% Design 120 17,040$ 240 26,400$ 400 42,000$ 480 48,000$ 40 2,720$ -$ 136,160$
3.3 Environmental Compliance 8 1,136$ 24 2,640$ 32 3,360$ 40 4,000$ 16 1,088$ -$ 12,224$
3.4 Water Quality Management Plan 40 5,680$ 40 4,400$ 64 6,720$ 80 8,000$ 24 1,632$ -$ 26,432$
3.5 Coordination with Agencies/Utilities 40 5,680$ 64 7,040$ -$ 80 8,000$ 40 2,720$ -$ 23,440$
3.6 60% Design Review Meeting 2 284$ 2 220$ -$ -$ 1 68$ -$ 572$
3.7 Utility Locating 4 568$ 8 880$ -$ 4 400$ 4 272$ 24 5,280$ 14,300$ 21,700$
3.8 90% Design 80 11,360$ 180 19,800$ 280 29,400$ 320 32,000$ 40 2,720$ -$ 95,280$
3.9 90% Design Review Meeting 2 284$ 2 220$ -$ -$ 1 68$ -$ 572$
3.10 100% Design 40 5,680$ 100 11,000$ 140 14,700$ 160 16,000$ 40 2,720$ -$ 50,100$
3.11 Final Coordination with Agencies/Utilities 8 1,136$ 16 1,760$ 16 1,680$ 16 1,600$ 8 544$ -$ 6,720$
4. Schedule 16 2,272$ 16 1,760$ -$ -$ 8 544$ -$ 4,576$
5. Construction Support 8 1,136$ 24 2,640$ 16 1,680$ 16 1,600$ 24 1,632$ -$ 8,688$ Subtotal: 452 64,184$ 866 95,260$ 1,132 118,860$ 1,488 148,800$ 300 20,400$ 40 8,800$ 14,300$ 470,604$ Project Total: 470,604$
Rates: Notes:
Project Manager 142$ /HR 1.) Reimbursables Include Cost for Prints, Copies, Mileage, Etc.
Project Engineer/Surveyor 110$ /HR 2.) Assumes 30 Legals and Plats for Easement Acquisition Purposes Associate Engineer 105$ /HR 3.) Assumes 10 Potholes for Utility Locating Purposes Assistant Engineer/Designer 100$ /HR
Clerical 68$ /HR
2-Man Survey Crew 220$ /HR TKE Engineering, Inc.
Project Manager
Project
Engineer/Surveyor
Assistant
Engineer/Designer Clerical Survey CrewAssociate Engineer City of Wildomar
Clinton Keith Road Widening Project
I-15 Freeway to the Easterly City Limits (CIP 025-1)
Fee Schedule Breakdown
453
ID Task Name Duration Start Finish
1 Project Administration 150 days Mon 8/14/23 Fri 3/8/24 2 Preliminary Engineering Services 117 days Mon 8/14/23 Tue 1/23/24 3 Initial "Kick Off" Meeting 0 days Mon 8/14/23 Mon 8/14/23 4 Records Research 10 days Mon 8/14/23 Fri 8/25/23
5 Base Construction Drawings 2 days Mon 8/14/23 Tue 8/15/23 6 30% Design 15 days Wed 8/16/23 Tue 9/5/23
7 Scope Review Meeting 0 days Tue 9/5/23 Tue 9/5/23
8 Right-of-Way 100 days Wed 9/6/23 Tue 1/23/24
9 Final Design Engineering Services 133 days Wed 9/6/23 Fri 3/8/24 10 Composite Utility Plan 5 days Wed 9/6/23 Tue 9/12/23 11 60% Design 40 days Wed 9/6/23 Tue 10/31/23
12 Environmental Compliance 100 days Wed 9/6/23 Tue 1/23/24 13 Water Quality Management Plan 60 days Wed 11/1/23 Tue 1/23/24 14 Coordination with Agencies/Utilities 10 days Wed 11/1/23 Tue 11/14/23 15 60% Design Review Meeting 0 days Mon 11/6/23 Mon 11/6/23 16 Utility Locating 10 days Tue 11/28/23 Mon 12/11/23
17 90% Design 30 days Tue 12/12/23 Mon 1/22/24
18 90% Design Review Meeting 0 days Fri 1/26/24 Fri 1/26/24 19 100% Design 20 days Mon 1/29/24 Fri 2/23/24
20 Final Coordination with
Agencies/Utilities
10 days Mon 2/26/24 Fri 3/8/24
8/14
9/5
11/6
1/26
7/237/30 8/6 8/13 8/20 8/27 9/3 9/109/17 9/24 10/1 10/810/1510/2210/2911/511/1211/1911/2612/312/1012/1712/2412/31 1/7 1/14 1/21 1/28 2/4 2/11 2/18 2/25 3/3 3/103 August September October November December January February March 2024
Task
Split
Milestone
Summary
Project Summary
External Tasks
External Milestone
Inactive Milestone
Inactive Summary
Manual Task
Duration-only
Manual Summary Rollup
Manual Summary
Start-only
Finish-only
External Tasks
External Milestone
Progress
Deadline
City of Wildomar
Clinton Keith Road Widening Project – Phase 1
I-15 Freeway to the Easterly City Limits (CIP 025-1)
Project Schedule