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HomeMy WebLinkAbout01/10/2006 CC Reports.- T L � RRE i -Y`;. ROWT E. "BOW "X]Y PR WWW-J AKF UAWM.ORG ROBERT L. SCHIFFNM, MA# PRO`T19 M (9 tj "1A i t Pubm, T$OMAS B1iCiE EY, C4i ph, N .:: (95i) 6"fi -M FAX ; DARYL MCPIAN:'CiiIJNCii N I-AI EI. tJI�E C ILA PRA CENTER .. G041 KELM, COU'N MOMAN 183 NORM AWN VniUT ROBERT A: BitA17Y,F MAJNkGER ilk, ELSti#RE„ GA,9'S38 ate �k7k da �Mk � dF ttr She ok itt�lk'�i1k�lr�lb�k�r�k dc�i �Trdr sir �esir �tc.4lr�k �k a ��iS �k�.sik ilk �Tr.ie�k sic iF%a�Mt�k qtr iTe ak�te #�9k �r�lr'9Etlrai��ltdP ilk If You are att i og, .this City Council Aja * pkaw a c' : Me . l id Lot across : re ' f o t .tote ' ltt r l ; ente . Tl iv .iaris+ i in l%itin,� � #� i�it� a� meetings on the ;Do�r►nto�v�t .��s���ess .�,�'��: Thank yo'u,or yr c�ao,Perationl GR fr P GE F 3LL CAL CL C H LGA� � a. CQNFF N T = �lC xsue-Sigrificart po; to litai LSu G on rsuant to Gov'v Code § 54955.9: (3 ten is b. -CON,FEPJK-NCE WI T :MEAL PROPFRTY NEJW TOR, ' P'ro perty: X2395 Ca ydon, Lace Elsinore, C lifarhia (A.P.N 370= ` 120 -445)" Negotiatigg pees: City Qf Lake! Elsinore and �e� Cambridge Foundatic Under ne prcx and terms ©f PaYnent _ P r,> t Th d. Joi�tC�`a�cilJdevel�nent Ageric -Stu Session- N' 8; 24iI5. e. Joint Ci r Cc�unciVRedeveloprn nt Agency Study Session, Novtj er -2 , 2005. y (((yy fl' R RE1vV A T l'V .: Approve. 2. Warrant Taut December 34, 2005. 14E1V l J i. ENDAT-I M, 3. update to LAIF Resolution; RECOTM1 ' An . ' Adopt Resolut en NQk 2-006 01 i z� 4. Award ofl errand Avettue Landscape. REC4lIl!ITIN: ` Raive the formal biddngrc�cess. £or the landscape installation on Grand Avenue and award, the bid t Excel Landscape in the amount of $19,0'12. 5: PSAC R for stricter Ordinance for home parties. REC4l� l! 3ATION: .Approve,PSAC.recommendation and direct the City Attorney to` prepare. the,. revised (Ordinance language , I stricter enforcement o f 6me parties for future Council consideratori b. pa�ation to replace obsolete compdters.at Senior Cent, AF 46mef Counter and City Hall. UODWOMATION: Waive = e form, ' p�c�e��s :and � � authorised the Cry to sign t { P 10, 24Q6i COV� �WN : Adop4, dipa* . 6: I, Y 5.,3 j upon:. _ second e8f ing by title onty, 32. Second -- Ordinance 1�0.' 1154 _ A1?�r�v��� �orr�e G g� NO.20Q5 «03. l V f.I M. 3 3 T' i4 Adop dina�n a o4 1 i 54, second 'read xg by tale only. 33. Se(fco//fJr�//""d l� ding =-- Qrc�znance No. 1155: -- ApproV�� Zone Change No. 2 05 V. ' ....: REIATION• Adapt �dnaance -Nn. 55, non second reading by title only. 34. Second Reading - Ordinance No. 1 156 -- Autho the: levy of services social tax and special tax. 1 ECO MI 'An- ON: Adopt Ordinance No: 1156; upon second reading title :only. 35,"'., Second Re ug,- -- Ordinance No 1158 -- Authomi,ng the, 1e4vy of a special tax �virthiri I Annexation Area No. :, 14, RE I E ATION'. Adopt Ordinance:+% l 1 S8; upon second reading oy�title only. 36. Second "ad* ng -- Ordinance Na l 1 9 - Authori ing.the levy ' services d spec, REC3N3?ATION: Adapt Ordinance No. 1159; upon second reading by bile only. 37. g -- prdiranceFv. 11.6 -Arisen t+E34�IC Lh warding Significant Palm Trees. 1age SeYEt.,..1 °i RECQMW41 , ATION: Adopt O3r o. 11 b7, upon first reading by: title Drily, ng. o $S41 tPlau ion aid Appointinent propess, RECOMI ATI is Accept the roignation :add. consider alt'emativeS as- listed in the staff report. 45, 32" Yeas C allocation. REC6MA''1()N:. Adopt 2nd 'Fear CBG Progararn. Direot staff to stib it,the City'S . proved program, to iverside Count}!, . 46. lndustriop�*.Re ew- No. 2005-01. A. l rCObgdW4JDA ON- Adopt �eS ©lotion Rio: �Q �-Q�,; adopting Fines' of Consistency with the MSWP.` ' Adopt Resolu%iob 'moo. 2006, 04 €approving Indus Design Review No. 1005-01. " A &. 47. Pr' me id ent tc� Joint Fawers.Agree ent erealin the Wes e w 'side County Regidrial �ohservati�h,Authoriiy RF-COM ND- A,T'ION; Approve Amen No., Authorize theAMo or to execute the agreement an arty: acilary implementing do�uznirts $. Coistruction Contract Award for Interim. Inpr©verr[ts at I- 15/Railroad won Road interchange, r MINUTES CITY COUNCIL STUDY SESSION CITY OF LAKE ELSINORE 183 NORTH MAIN STREET LAKE ELSINORE, CALIFORNIA THURSDAY, SEPTEMBER 29, 2005 CALL TO ORDER Mayor Magee called the Study Session to order at 4 :38 p.m. ROLL CALL PRESENT: COUNCILMEMBERS: BUCKLEY, KELLEY SCHIFFNER, MAGEE ABSENT: COUNCILMEMBERS: HICKMAN Also present were: City Manager Brady, City Attorney LeiboId, Information /Communications Manager Dennis, Lake & Aquatic Resources Director Kilroy, Community Services Director Sapp, Planning Manager Preisendanz, Senior Civil Engineer Basubas, Public Works Manager Payne, Recreation/Tourism Manager Fazzio, Police Chief Fetherolf, City Treasurer Weber and Office Specialist I Soto. PUBLIC COMMENTS Edith Stafford, resident, inquired why the draft recommendation of the City Council Policy Manual was not made available. Mayor Magee indicated that he would have the City Attorney address that issue. Bill Tiitto, 32296 Machado Street, inquired if there was an additional cost for the City Attorney to review City Council Policy Manual. Agenda Item No. Page / Of / O PAGE TWO STUDY SESSION MINUTES — SEPTEMBER 29, 2005 Mayor Magee indicated that it was his belief that the review of the City Council Policy Manual rendered by the City Attorney would fall under special services. He stated that he would have the City Attorney address that matter. DISCUSSION ITEMS City Attorney Leibold stated that City Council Policies, on behalf of her recommendation, should address the conduct and business of the City Council and Elected Officials and certain other policy matters that related to City business. City Attorney Leibold indicated that Councilmember Buckley and Councilmember Hickman were part of the subcommittee designated by City Council to review the City Council Policy Manual. City Attorney Leibold stated that Policy 100 -1 was the foundation of what the City Council Policy Manual was intended to address. She noted that the policy clarified that personnel rules and regulations govern employee conduct, individual employment contracts and contracted employees. City Attorney Leibold stated that Policy 100 -2 was a proposed Code of Ethics. She noted that policies brought forward in relation to ethics would be deleted and repealed from provisions of the Municipal Code. She further noted that the City Council was governed by the Political Reform Act, the Government Code 1090 relating to contracts and the Redevelopment Law relating to the acquisition or ownership of property in a project area. She noted that all of the Conflicts of Interests, disclosures and ethical requirements were addressed in State Law. She indicated that the City's Code of Ethics was inconsistent. She noted that the draft Code of Ethics attempted to address items that were not covered by State Law or to reiterate what was governed by State Law. Councilmember Buckley noted that on behalf of the subcommittee, the recommendation was that the whole Code of Ethics section of the manual be redone. Agenda Item No. f Q Page o? Of /0 -` PAGE THREE STUDY SESSION MINUTES — SEPTEMBER 29, 2005 City Attorney Leibold indicated that Policy 100 -3 was updated from Racial Discrimination to Anti - Discrimination. City Attorney Leibold stated that the subcommittee recommended specific changes to Policy 100 -4 relating to the preparation of City Council and Agency Agendas. She noted that subcommittee had recommended the addition of a new 1004A that related specifically to the provision of City Council Agendas to the public. City Attorney Leibold stated that Policy 100 -5 and 100 -6 were related to the reconsideration of Council items. She recommended the deletion of those provisions and suggested that they be a part of City Council's procedural guidelines. City Attorney Leibold stated that the subcommittee did make recommended changes to Policy No. 100 -7 related to citizen complaints and suggestions. Councilmember Buckley indicated that a time limit of 5 days for citizen complaints and suggestions was recommended to Policy 100 -7. City Attorney Leibold stated that her recommendation to Policy 100 -9 that dealt with Contract Change Orders would be contingent to the discretion of the City Manager for Change Orders up to $15 thousand. She noted that anything beyond $15 thousand would require City Council's approval. City Attorney Leibold stated that the recommendation on Policy No. 100 -10 from the subcommittee and the City Clerk had established a goal of digital recording so City Council minutes could be provided on CD. Councilmember Buckley stated that the subcommittee added the recommendation that the City Clerk's Office shall, in all cases, move as expeditiously as possible in the gathering of records and shall interpret the right of the public's immediate access to records as broadly as possible in all requests. Agenda Item No.�( Page -3 Of j 0 PAGE FOUR STUDY SESSION MINUTES — SEPTEMBER 29, 2005 r.r0 Councilmember Buckley stated that Policy 100 -11 addressed Conditions of Approval on Development Projects where in all cases signalization shall occur in the first phase of each project. City Attorney Leibold stated that she believed Policy 100 -12 was never formally adopted or formally incorporated into the City Council Policy Manual. She noted that the policy related to the inspection of invoices from legal services rendered. City Attorney Leibold stated that she found several errors in Policy 200 -1 that did not reflect the proper protocol. City Attorney Leibold stated that she needed direction from City Council on Policy 200 -2 and 200 -3. She noted that she had believed those sections were removed because they were governed by State law. She further noted that the annual filing of the Statement of Economic Interests Forms were required with the Political Reform Act and the Conflicts of Interest Code. ,%no City Attorney Leibold stated that she needed direction from the City Council on Policy No. 200 -4. City Attorney Leibold stated that Policy No. 200 -5A and 2005 -513 ran in sequence. She noted that the policies were proposed by the Electoral Reform Committee and were reviewed by the City Council at a special meeting where the Electoral Reform Committee made their presentation. She stated that the City Council made specific modifications to the policy that evening. City Attorney Leibold stated that the City Council updated Policy No. 200 -7 in April of 2004. She noted that she did not make any specific recommendations to change the policy as it was adopted in 2004. City Attorney Leibold stated that in the past, Council Members were participatory in a television show. She inquired if there was still a need for Policy No. 200 -8. She noted the changes recommended by the subcommittee. Agenda Item No. 10, Page _11 Of /0 r- PAGE FIVE STUDY SESSION MINUTES — SEPTEMBER 29, 2005 City Attorney Leibold stated that the subcommittee recommended deletion of Policy No. 200 -9. Councilmember Buckley indicated that the policy stated that all meetings with outside agencies or individuals, requested or scheduled by the Councilmember, should be scheduled through the Clerk's Office. City Attorney Leibold stated that the policy had not been happening and was unworkable. City Attorney Leibold requested that direction be given on Policy No. 200 -10. She noted that the recommendation for City Council Study Sessions were to be set for the first and third Thursdays of the month. City Attorney Leibold noted that Policy No. 200 -11 was presented to City Council by the Electoral Reform Committee. She noted that City Council did make some modifications. She noted that the subject matter had to do with the filling of City Council vacancies. She further noted the policy stated that a vacancy would be filled immediately by appointment and had established a procedure to fill that vacancy. She indicated that in the event that a vacancy occurred after July lst in the last year of a Council term, the vacancy would be held open and would not be filled. She noted that the vacancy would be filled at the next regularly scheduled general Municipal Election. Councilmember Buckley noted the policy stated that no person serving as a Councilmember during the occurrence of a vacancy on the Council, shall be eligible for appointment to fill such vacancy. City Attorney Leibold stated that she recommended the deletion of Policy No. 300- 1 in relation to City Council compensation. She noted that it was governed by the government code and that there was a Lake Elsinore Municipal Code that related to City Council compensation. She noted that the subcommittee's recommendation was for Council to forfeit their compensation in the event a balanced budget was not adopted. She indicated that if the City Council wanted to consider such a �., provision it could be incorporated into the ordinance or retain a policy that Agenda Item No.�� Page -5— Of /C PAGE SIX STUDY SESSION MINUTES — SEPTEMBER 29, 2005 encouraged, but not required, forfeiture of compensation in the event suggested by the subcommittee. City Attorney Leibold stated Policy No. 300 -2, relating to petty cash disbursements, was a very short policy. Councilmember Buckley stated that the subcommittee eliminated the City Council being able to use petty cash and that all disbursements must be approved by a Department Head or the City Manager. City Attorney Leibold stated that the recommendation for Policy No. 300 -2 was deletion. City Attorney Leibold stated that Policy No. 300 -3 did not relate to City personnel. She suggested that the City Council read through and pay particular attention to its content. Councilmember Buckley stated that the departure and arrival times were not needed as stated in the policy since there was a partial day per diem. City Attorney Leibold stated that Policy No. 300 -4 that was formally Travel and Training had been consolidated into 300 -3 and recommended that Seminars and Conferences be the subject matter of 300 -4. City Attorney Leibold stated that the subcommittee had recommended deletion of Policy No. 300 -6 relating to Senior Citizen Rebates and Citywide Lighting and Landscaping, City Attorney Leibold stated that she had recommended deletion of Policy No. 300-7. City Attorney Leibold stated that Policy No. 300 -8 was revised in June 2004. ..r Agenda Item No. 10� Page 0 Of /Q �^ PAGE SEVEN STUDY SESSION MINUTES — SEPTEMBER 29, 2005 Administrative Services Director Pressey indicated that the last revision took place in June 2005. He noted that there were no changes. He indicated that it had to be adopted annually per the State Government Code. City Attorney Leibold stated that her recommendation for Policy No. 300 -10 was to change Developer Agreement Fees to Development Agreement Fees. She noted that the fees would be the subject matter of individual negotiations with respect to each development agreement. City Attorney Leibold stated that Policy No. 300 -11 was adopted in July 2004. She noted that there were no recommendations. City Attorney Leibold stated that Policy No. 300 -13 was a new one titled Background Checks for Designated Contracts. She noted that she had talked about the benefits of establishing a uniform due diligence or application process. City Attorney Leibold stated that Policy No. 400 -1, in regard to letterhead, indicated that City Letterhead was strictly for the use of City correspondence. Councilmember Buckley stated that the policy also noted that if a Councilmember used letterhead to correspond an issue that has not been before the entire body for consideration, the letter must clearly state that the its contents were the opinion of the individual Councilmember and may not necessarily reflect the position of the City Council as a whole. City Attorney Leibold stated that Policy No. 400 -3 related to keys to City Hall. She noted that her recommendation would be to add that the key could not be replicated; it must be for the City Council's sole use and must only be used for City business. City Attorney Leibold stated that the subcommittee recommended that individual Councilmembers could make inquiry of individual City Personnel in Policy No. 400 -4. She noted that a request for work or a product would be funneled through the City Manager. Agenda Item No. { Ol Page7_Of 10 PAGE EIGHT STUDY SESSION MINUTES SEPTEMBER 29, 2005 City Attorney Leibold stated that with Policy No 2005 -5, City vehicles could not be used for personal use but only for City business. She noted that there was mileage reimbursement for the use of their personal car, as long as it was for City business. City Attorney Leibold stated that the subcommittee recommended some changes on Policy No. 400 -6. She noted that there was specific reference to the City Treasurer in the subcommittees recommended changes. Councilmember Buckley noted that a formal press release must be approved by the Mayor. City Attorney Leibold noted that Policy No. 400 -7 was governed by State Law. City Attorney Leibold noted that Policy No. 400 -8 was something she would like to discuss with staff to determine whether there might be a desire for additional policy statements in that regard. City Attorney Leibold stated that Policy No. 400 -9 was governed by the City's Purchasing Ordinance and State Law. City Attorney Leibold stated that Policy No. 400 -10 was something the City Council had not seen before. She noted that the existing policy related to memorial tree plantings. She noted the renaming of several public facilities. She noted that the revised 400 -10 policy addressed the renaming of public facilities as well as memorial tree plantings. City Attorney Leibold stated that Policy No. 400 -11 was a long standing policy that dated back to 1996. She noted that the subcommittee recommended some modification to the policy. City Attorney Leibold stated that Policy No. 400 -12 was a relatively new policy. She noted that it mostly addressed conditions of use for staff. She noted that it would be incorporated into the City's Personnel Rules and Regulations. Agenda Item No.t A Page r Of / 0 --- PAGE NINE STUDY SESSION MINUTES — SEPTEMBER 29, 2005 Councilmember Buckley indicated that there had to be a regular scheduled meeting to change the policies. City Attorney Leibold noted that she would look into that reference. City Attorney Leibold indicated that she would like direction from the City Council on how to go forward. Mayor Magee thanked City Attorney Leibold and her office for all the work. Additionally, Mayor Magee thanked the subcommittee for their work as well. He indicated that several of the Councilmembers had not had the opportunity to go through the material. He noted that a significant amount of time would need to be dedicated to reading the material in order to be adequately prepared to discuss the policies. He suggested scheduling a study session for October 11th so Councilmember Hickman could attend. Mayor Pro Tem Schiffner noted that there was very little in the policy manual that he would question. City Attorney Leibold stated that.in regard to the Internet Policy, Information/Communications Manager Dennis indicated that City Council's e-mail was provided through the server and considered a public record. Councilmember Kelley suggested compiling a list of items to discuss for the October 11th meeting. Mayor Magee noted that he would consent to that idea if all the Councilmembers were adequately prepared at that time. Councilmember Buckley stated scheduling a meeting with surrounding public agencies to set action timelines for developments and projects throughout the City. Mayor Pro Tem Schiffner stated that he would like everyone to keep in mind that more than one study session may be needed to revisit Council Policies. Agenda Item No. a Page 9 Of /0 PAGE TEN STUDY SESSION MINUTES — SEPTEMBER 29, 2005 ADJOURNMENT THE CITY COUNCIL STUDY SESSION WAS ADJOURNED AT 5:58 P.M. ROBERT E. MAGEE, MAYOR CITY OF LAKE ELSINORE Respectfully submitted, MICHELLE SOTO, OFFICE SPECIALIST I ATTEST: FREDERICK RAY, DEPUTY CITY CLERK Agenda Item No._ Page_. %O Of /0 MINUTES REGULAR CITY COUNCIL MEETING CITY OF LAKE ELSINORE 183 NORTH MAIN STREET LAKE ELSINORE, CALIFORNIA TUESDAY, OCTOBER 11, 2005 CALL TO ORDER The Regular City Council Meeting was called to order by Mayor Magee at 5:01 p.m. ROLL CALL PRESENT: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: BUCKLEY, HICKMAN, KELLEY, SCHIFFNER, MAGEE NONE Also present were: City Manager Brady, City Attorney Leibold, Information /Communications Manager Dennis, Planning Manager Preisendanz, Public Works Manager Payne, Building Division Manager Chipman, Police Chief Fetherolf, City Treasurer Weber and Deputy City Clerk Ray. CLOSED SESSION THE REGULAR CITY COUNCIL MEETING WAS RECESSED INTO CLOSED SESSION AT 5:02 P.M. RECONVENE IN PUBLIC SESSION (7:00 P.M.) Agenda Item No. Page of 2 Page Two — City Council Minutes — October 11, 2005 PLEDGE OF ALLEGIANCE The Pledge of Allegiance was led by Lorraine Watts. INVOCATION — MOMENT OF SILENT PRAYER Mayor Magee led the meeting in a moment of silent prayer. ROLL CALL PRESENT: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: BUCKLEY, HICKMAN, KELLEY, SCHIFFNER, MAGEE NONE Also present were: City Manager Brady, City Attorney Leibold, Information /Communications Manager Dennis, Planning Manager Preisendanz, Public Works Manager Payne, Building Division Manager Chipman, Police Chief Fetherolf, City Treasurer Weber and Deputy City Clerk Ray. CLOSED SESSION a. PUBLIC EMPLOYEE APPOINTMENT (Gov't Code § 54957) Title: City Clerk b. CONFERENCE WITH LABOR NEGOTIATOR (Gov't Code § 54957.6: City Negotiator: Special Counsel, Steve Filarsky Employee Organization: Laborers' International Union of North American Local 777 C. CONFERENCE WITH LEGAL COUNSEL — ANTICIPATED LITIGATION Significant exposure to litigation pursuant to subdivision (b) of Gov't Code § 54956.9: (1 potential case). .rr ,%N or �.s Agenda Item No. � -b Page of q)- '" Page Three — City Council Minutes — October 11, 2005 CLOSED SESSION REPORT City Attorney Leibold announced the Closed Session discussion items as listed above. She announced that there was no reportable action on any of the Closed Session items. PRESENTATION /CEREMONIALS A. Proclamation — National Breast Cancer Awareness Month. Mayor Magee called Lori Arias, Administrative Director for the Riverside Community Hospital Cancer Center forward for the presentation. Mayor Magee read and presented the proclamation. Mrs. Arias thanked the Council on behalf of Riverside Community Hospital. She commented on some of the new technology currently being used to detect breast cancer. She also commented on some upcoming events involving Breast Cancer awareness. B. Proclamation — Susan G. Komen Breast Cancer Foundation. Mayor Magee called Lisa Stevens forward. Mayor Magee read and presented the proclamation. Mrs. Stevens thanked the Council for the proclamation. She noted that the money raised from their Race for the Cure was put back into the communities. C. Proclamation — American Cancer Society. Mayor Magee called Cindy forward. Mayor Magee read and presented the proclamation. Cindy noted that the event held this year marked the third annual Relay for Life. She noted that the event has grown each year. D. Presentation to Historical Society Representative. Mayor Magee called representatives from the Historical Society forward. JJ Swanson - O'Neil indicated that this presentation was the idea of Community Services Director Sapp. She noted that Castle & Cooke from the Alberhill 100�1 Ranch development decided to honor Donna by naming a street in her honor Agenda Item No. 1-6 Page_ of 42 Page Four — City Council Minutes — October 11, 2005 *M0, in the Alberhill Ranch development. Donna thanked the City, City Council and the Historical Society. She gave special thanks to her husband for his ongoing support. E. Introduction of new City employees. Mayor Magee deferred to City Manager Brady. City Manager Brady commented on the staff positions that had been vacant. Administrative Services Director Pressey introduced Account Specialist I Rita Davis. He commented on her level of experience. Building and Safety Manager Chipman introduced Community Development Technician Emile Jackson and commented on his background. He also introduced Building Inspector Dave Ferguson and commented on his experience level. Planning Manager Preisendanz introduced Assistant Planner Justin Carlson. City Manager Brady commented that Ken Seumalo was once again the City Engineer and that he was happy to have Mr. Seumalo back as a staff member. Mayor Magee welcomed all the new employees. PUBLIC COMMENTS — NON - AGENDIZED ITEMS —1 MINUTE Ron LaPere 16867 Wells Street, suggested that Council consider setting a written policy to deal with the naming of facilities. He noted that there had been so many people that had played a part in the development of Lake Elsinore. Donna Franson, 7 Villa Valtelena, commented that the L.E. Citizens Committee would be having their fourth quarter citizen meeting on October 27th. He suggested that everyone work together to resolve the issues. Agenda Item No. j1 Page of `i'2 Page Five — City Council Minutes — October 11, 2005 CONSENT CALENDAR ITEMS MOVED BY BUCKLEY, SECONDED BY SCHIFFNER AND CARRIED BY A UNANIMOUS VOTE TO APPROVE THE CONSENT CALENDAR AS PRESENTED. 1. The following Minutes were approved: a. City Council Study Session — August 24, 2005. b. Joint City Council/Planning Commission/Public Safety Advisory Commission Study Session — August 30, 2005. C. Special City Council Meeting - August 30, 2005. d. Joint City Council/Redevelopment Agency Budget Study Session — September 13, 2005. 2. Ratified Warrant List for September 30, 2005. 3. Approved Supplemental Law Enforcement Service Fund (SLESF) Expenditure Plan. 4. Authorized the Mayor to execute the Notice of Completion for traffic signal at Grand Avenue and Broadway Avenue and have the City Clerk file the document for recordation. 5. Directed staff to readvertise Interim I- 15/Railroad Canyon Road construction project for an additional 30 days. 6. Approved the disposal of surplus electronics as scrap. 7. Rejected claims and directed the City Clerk to send letters informing the claimants of the decision. 8. Authorized the Mayor to enter the City into an agreement with LAN Engineering for preparation of a Project Report and Environmental Documents for Interstate 15 /State Route 74 (Central Avenue) in accordance r— with Caltrans guidelines for the amount of $694,232. Agenda Item No. Page of Page Six — City Council Minutes — October 11, 2005 9. Approved 2005/2006 CDBG Supplemental Agreement. PUBLIC HEARINGS 21. Extension of Time No. 2005 -02 for Tentative Parcel Map No. 31051. Mayor Magee introduced the item and deferred to Planning Manager Preisendanz. Planning Manager Preisendanz gave an in -depth overview of the item. He noted the original Parcel Map was approved on September 2, 2003. He indicated, with approval, the map would be given a 2 year extension. MOVED BY SCHIFFNER, SECONDED BY HICKMAN AND CARRIED BY UNANIMOUS VOTE TO ADOPT RESOLUTION NO. 2005-1479 APPROVING THE EXTENSION OF TIME NO. 2005-02 FOR TENTATIVE E � PARCEL MAP NO. 31051 LOCATED AT CENTRAL AVENUE AND PASADENA STREET. �' GENERAL CONDITIONS (Note: Fees listed in the Conditions of Approval are the best estimates available at the time of approval. The exact fee amounts will be reviewed at the time of building permit issuance and may be raised.) 1. Tentative Parcel Map No. 31051 will expire two (2) years from September 23, 2003 dame€ appreval unless within that period of time a final map has been filed with the County Recorder, or an extension of time is granted by the City of Lake Elsinore City Council in accordance with the Subdivision Map Act. Tentative Parcel Map No. 31031 will expire on September 23, 2007. 2. Tentative Parcel Map No. 31051 shall comply with the State of California Subdivision Map Act and shall comply with all applicable requirements of the Lake Elsinore Municipal Code, Title 16 unless modified by approved Conditions of Approval. 3. Approval of this subdivision is subject to the mitigations measures listed within the Mitigated Negative Declaration No. 2003 -02 Agenda Item No. ✓ ' Page` of 4 2 -^ Page Seven — City Council Minutes — October 11, 2005 4. The applicant shall defend (with counsel acceptable to the City), indemnify, and hold harmless the City, its Official, Officers, Employees, and Agents from any claim, action, or proceeding against the City, its Official, Officers, Employees, or Agents to attach, set aside, void, or annul an approval of the City, its advisory agencies, appeal boards, or legislative body concerning Tentative Parcel Map No. 31051, which action is bought within the time period provided for in California Government Code Sections 65009 and /or 66499.37, and Public Resources Code Section 21167. The City will promptly notify the Applicant of any such claim, action, or proceeding against the City and will cooperate fully with the defense. If the City fails to promptly notify the Applicant of any such claim, or proceeding, the Applicant shall not, thereafter, be responsible to defend, indemnify, or hold harmless the City. 5. The applicant shall sign and return an "Acknowledgment of Conditions" to the Community Development Department within 30 days of the Tentative Parcel Map approval. 6. Prior to final map approval of Tentative Parcel Map No. 31051, the improvements specified herein and recommended approved by the Planning Commission and approved by the City Council shall be installed, or agreements for said improvements, shall be submitted to the City for approval by the City Engineer, and all other stated conditions shall be complied with. All uncompleted improvements must be bonded for as part of the agreements. 7. All of the improvements shall be designed by developer's Civil Engineer to the specifications of the City of Lake Elsinore. 8.. Applicant must meet all requirements of Elsinore Valley Municipal Water District (EVMWD). 9. The applicant shall pay applicable fees and obtain proper clearance from the Lake Elsinore Unified School District (LEUSD) prior to issuance of building permits. 10. Pay all applicable park fees in force at time of issuance of building permits. 11. The applicant shall provide connection to public sewer for each lot within the subdivision prior to building permit. No service laterals shall cross adjacent property lines and shall be delineated on engineering sewer plans and profiles for submittal to the EVMWD. 12. Meet all requirements of the providing electric utility company. 13. Meet all requirements of the providing gas utility company. 14. Meet all requirements of the providing telephone utility company. 15. The applicant shall comply with all requirements of the Riverside County Fire Department. AO-- 16. All trailers, mailboxes and signage used during construction shall be subject to Planning Division review and approval prior to installation. Agenda Item No. I b- Page of Page Eight — City Council Minutes — October 11, 2005 0 17. All development associated with this map requires separate Design Review approval pursuant to Section 17.82 of the Lake Elsinore Municipal Code. 18. Prior to building permit the applicant shall submit a Sign Program for the entire complex. This Program shall include size, location and color restricts for each building. The program shall include size, location and color for any monuments signs. 19. An En-eirenmental Gongtraint Sheet shaH be attaehed to and reviewed as part of the Final Map preeesq. The Envirentnental Constrain Sheet shafl note that Pareels 7, 8, 9 and 10 are to be led tm64 replaeement habitftt is found at a mfinnnum ratio of 1A per the requirement of the Department of Fish and Gfttne, The owners may seek appro-eft! of alternate fili.'— from U.S. Fish & Game and the Gity of Lake Riginore if the exi fnentafly impaete Revised at Planning Commission September 2, 2003 20. The applicant shall record a CC &R that provides for irrevocable reciprocal patidn, circulation, ingress, and egress, loading and landscaping maintenance easements in favor of all lots. It shall also enforce standards of building maintenance and participation in landscape maintenance. The CC &R shall be approved by the Community Development Director prior to building permit. Revised at Planning Commission September 2, 2003 ENGINEERING DIVISION 21. All Public Works requirements shall be complied with as a condition of development as specified in the Lake Elsinore Municipal Code (LEMC) prior to final map approval. 22. Pay all Capital Improvement and Plan Check fees (LEMC 16.34, Resolution 85 -26). The traffic mitigation fee is $0.71 per sq. ft. of building area and the drainage fee is $95,297 (Warm Springs West Distr.). 23. Submit a "Will Serve" letter to the City Engineering Division from the applicable water agency stating that water and sewer arrangements have been made for this project. Submit this letter prior to final map approval. 24. Applicant shall dedicate a 50 ft. half section on Central Ave., a 60 ft. half section on Collier Ave. and a 45 ft. half section on Pasadena St. and show on the parcel map. 25. Construct all public works improvements per approved street plans (LEMC 12.04). Plans must be approved and signed by the City Engineer prior to final map approval (LEMC 16.34). Agenda Item No. 1 Jb `MOO, Page `6 oft Page Nine — City Council Minutes — October 11, 2005 26. Street improvement plans and specifications shall be prepared by a Calif. Registered Civil Engineer. Improvements shall be designed and constructed to Riverside County Road Department Standards, latest edition, and City Codes (LEMC 12.04 and 16.34). 27. Applicant shall enter into an agreement with the City for the construction of public works improvements and shall post the appropriate bonds prior to final map approval. 28. The applicant shall be required to place the final AC pavement overlay on the entire width of Central Avenue to CollierAvenue. The along the existing curb and gutter along CentralAvenue shall be allowed to remain in place and the applicant shall dedicate the necessary right -of -way along Central to the Ciy. Devised at Planning Commission September 2, 2003 29. Applicant shall obtain any necessary Caltrans permits and meet all Caltrans requirements. 30. Pay all fees and meet requirements of encroachment permit issued by the Engineering Division for construction of public works improvements (LEMC 12.08 and Resolution 83 -78). 31. All compaction reports, grade certifications, monument certifications (with tie notes delineated �- on 8 ' /z" x 11" Mylar) shall be submitted to the Engineering Division before final inspection of public works improvements will be scheduled and approved. 32. Applicant shall obtain all necessary off -site easements for off -site grading from the adjacent property owners prior to final map approval. 33. Arrangements for relocation of utility company facilities (power poles, vaults, etc.) out of the roadway or alley shall be the responsibility of the property owner or his agent. 34. Provide fire protection facilities as required in writing by Riverside County Fire. 35. Provide street lighting and show lighting improvements as part of street improvement plans as required by the City Engineer. 36. Developer shall install blue reflective pavement markers in the street at all fire hydrant locations. 37. Applicant shall submit a traffic control plan showing all traffic control devices for the tract to be approved prior to final map approval. All traffic control devices shall be installed prior to final inspection of public improvements. This includes No Parking and Street Sweeping Signs for streets within the tract. 38. All improvement plans and tract maps shall be digitized. At Certificate of Occupancy applicant shall submit tapes and /or discs which are compatible with City's ARC Info /GIS or developer to pay $300 per sheet for City digitizing. Agenda Item No. ) b Page of j Page Ten — City Council Minutes — October 11, 2005 39. All utilities except electrical over 12 kv shall be placed underground, as approved by the serving utility. 40. Apply and obtain a grading permit with appropriate security prior to building permit issuance. A grading plan signed and stamped by a Calif. Registered Civil Engineer shall be required if the grading exceeds 50 cubic yards or the existing flow pattern is substantially modified as determined by the City Engineer. If the grading is less than 50 cubic yards and a grading plan is not required, a grading permit shall still be obtained so that a cursory drainage and flow pattern inspection can be conducted before grading begins. 41. Provide soils, geology and seismic report including street design recommendations. Provide final soils report showing compliance with recommendations. 42. An Alquis -Priolo study shall be performed on the site to identify any hidden earthquake faults and /or liquefaction zones present on -site. 43. Individual lot drainage shall be conveyed to a public facility or accepted by adjacent property owners by a letter of drainage acceptance or conveyed to a drainage easement. 44. On -site drainage facilities located outside of road right -of -way should be contained within drainage easements shown on the final map. A note should be added to the final map stating: "Drainage easements shall be kept free of buildings and obstructions ". 45. All natural drainage traversing site shall be conveyed through the site, or shall be collected and conveyed by a method approved by the City Engineer. 46. Meet all requirements of LEMC 15.64 regarding flood hazard regulations. 47. Meet all requirements of LEMC 15.68 regarding floodplain management. Part of this site is in FEMA Flood Zone AE and the finish floor elevation must be at or above an elevation. of 1260. Part of this site is in FEMA Flood Zone AO and the finish floor elevation must at least one foot above the adjacent grade. 48. The applicant to provide FEMA elevation certificates prior to certificate of occupancies where applicable. 49. Submit Hydrology and Hydraulic Reports for review and approval by City Engineer and the Riverside County Flood Control District prior to approval of final map. Developer shall mitigate any flooding and /or erosion caused by development of site and diversion of drainage. 50. All drainage facilities in this tract shall be constructed to Riverside County Flood Control District Standards. Agenda Item No. b Pagep of LP 10"' Page Eleven — City Council Minutes — October 11, 2005 51. Storm drain inlet facilities shall be appropriately stenciled to prevent illegally dumping in the drain system, the wording and stencil shall be approved by the City Engineer. 52. Roof and yard drains will not be allowed to outlet through cuts in the street curb. Roof drains should drain to a landscaped area when ever feasible. 53. 10 year storm runoff should be contained within the curb and the 100 year storm runoff should be contained within the street right -of -way. When either of these criteria is exceeded, drainage facilities should be installed. 54. A drainage acceptance letter will be necessary from the downstream property owners for outletting the proposed stormwater run -off on private property. 55. Developer shall be subject to all Master Planned Drainage fees and will receive credit for all Master Planned Drainage facilities constructed. 56. Applicant shall obtain approval from Santa Ana Regional Water Quality Control Board for their storm water pollution prevention plan including approval of erosion control for the grading plan prior to issuance of grading permits. The applicant shall provide a SWPPP for i— post construction which describes BMP's that will be implemented for the development and including maintenance responsibilities. 57. Education guidelines and Best Management Practices (BMP) shall be provided to building owners for outdoor storage, building maintenance, vehicle maintenance and landscaping as well as other environmental awareness education materials on good housekeeping practices that contribute to protection of stormwater quality and met the goals of the BMP in Supplement "A" in the Riverside County NPDES Drainage Area Management Plan. 58. Lots that front Collier Ave. shall have their access restricted on Collier Ave. and so noted on the final map. 59. All parcels shall have direct access to public right -of -way or be provided with a minimum 25 foot ingress and egress easement to public right -of -way by separate instrument or through map recordation. The width and turning radii of access easements must be approved by Riverside Fire Dept. prior to final map approval. 60. Applicant shall cause to be recorded a CC &R which provides for irrevocable reciprocal parking, circulation, loading and landscape maintenance easement in favor of all lots subject to the approval of the director of Community Development & the City Attorney. The CC& R shall enforce standards of building maintenance, participation in landscape maintenance, prohibition of outside vehicle or material storage. Agenda Item No. I-19 Page of Page Twelve— City Council Minutes — October 11, 2005 61. In accordance with the City's Franchise Agreement for waste disposal & recycling, the applicant shall be required to contract with CR &R Inc. for removal and disposal of all waste material, debris, vegetation and other rubbish generated during cleaning, demolition, clear and grubbing or all other phases of construction. THE FOLLO W17NG CONDITIONS OF APPRO VAL ARE PART OF THE EXTENSION OF TIME, CITY COUNCIL HEARING, OCTOBER 11, 2005: 62. Existing Conditions ofApproval are in effect with the following revisions and additions. Prior to issuance of building permit: 63. Pay all Capital Improvement and Plan Check fees a—, MC 16.34, Resolution 85 -26), mitigation fees, area drainage fee, traffic impact fee (77F), encroachment permit fees and inspection fees associated with the project and its development. The fees shall be based on the latest fee rates approved by City Council. Prior to approval of final map: 64. Dedicate a full half -width right -of -way for Collier Avenue consistent with the recommendations of the approved traffic study of Tentative Parcel Map 33056. 65. Construct full half -width road improvements along the prject frontage of Collier Avenue consistent with the recommendations included in the approved traffic study of Tentative Parcel Map 33056. 66. Dedicate full ba fwidtb right -of -way for Central Avenue. Half width shall be consistent with the recommendations of the approved traffic study of Tentative Parcel Map 33056. 67. Construct full half -width street improvements along the project frontage of Central Avenue consistent with recommendations of the approved tralc study of Tentative Parcel Map 33056. 68. Dedicate full half -width right -of -way for Pasadena Street such that the half width is 30 feet. Street improvements shall be conditioned on the parcel adjacent to Pasadena Street when a submittal is received. General Requirements: 69. All street improvements on State Route 74 (Collier Avenue) shall require an encroachment permit from CAL7RANS. 70. Applicant shall comply with the mitigation described in the approved traffic plan including contribution towards the improvements in the SK7411-15 interim interchange improvements. 71. The entrance on Collier shall provide for a dedicated right turnl deceleration lane Agenda Item No.—L6 ^�No. Page � G. of 14 �'` Page Thirteen — City Council Minutes — October 11, 2005 72. Applicant shall provide for detention of the incremental increase in stormwater runoff. Calculations shall be consistent with Riverside County Flood Control standards. 73. Street improvements shall include road and drainage improvements, street lighting, traffic signing and striping. *Italics indicates addition to text, sfi A ough- indicates removal from text. 22. Tentative Tract Map No. 32786. Mayor Magee introduced the item and deferred to Planning Manager Preisendanz. Mr. Preisendanz gave in -depth overview of the item. He indicated that the project went before the Planning Commission on September 20, 2004. He further indicated that the Planning Commission was recommending approval to the City Council. Danny Perez, 19615 Grand Avenue, commented that he also owned property near Terra Cotta Road. He indicated that he brought to the Planning Commissions attention the storm drain system on the corner of Terra Cotta Road that went through his property. He indicated that he had met with the Centex project manager on the site to discuss the problem. He further indicated that the project manager agreed to correct the problem. He commented that as long as Centex agreed to correct the problem he was in support of the project. Mayor Magee inquired if Mr. Perez felt the issue had been resolved. Mr. Perez indicated as long as the drain could be diverted. He noted that he has not seen the final proposal of the street improvement plans. Mayor Magee inquired if staff was aware of the issue. City Manager Brady explained that staff would also work with the applicant to ensure the problem was properly addressed. John Neu, Centex Homes Project Manager, commented that he had met with Mr. Perez and they would direct their drainage around Mr. Perez's property. �— He indicated that they were in agreement with staff and Planning Agenda Item No. I Page j� Of d Page Fourteen — City Council Minutes — October 11, 2005 Commission's recommendations. Planning Manager Preisendanz added in Condition No. 84 stating that "Prior to the issuance of the first building permit the applicant shall annex into the Lighting and Landscape Maintenance District No. 1 to offset the annual negative fiscal impacts of the project on public right -of -way landscaped areas to be maintained by the City and for street lights in the public right -of- way in which the City would pay for electricity, which includes a maintenance fee to Southern California Edison ". MOVED BY BUCKLEY, SECONDED BY KELLEY AND CARRIED BY UNANIMOUS VOTE TO ADOPT RESOLUTION NO. 2005-1489 APPROVING FINDINGS OF CONSISTENCY WITH THE MULTIPLE SPECIES HABITAT CONSERVATION PLAN (MSHCP). MOVED BY BUCKLEY, SECONDED BY KELLEY AND CARRIED BY UNANIMOUS VOTE TO ADOPT RESOLUTION NO. 2005-1499 APPROVING MITIGATED NEGATIVE DECLARATION NO. 2005-09. MOVED BY BUCKLEY, SECONDED BY KELLEY AND CARRIED BY UNANIMOUS VOTE TO ADOPT RESOLUTION NO. 2005-1509 APPROVING TENTATIVE TRACT MAP NO. 32786. GENERAL CONDITIONS 1. The applicant shall defend (with counsel acceptable to the City), indemnify, and hold harmless the City, its Officials, Officers, Employees, Agents, and its Consultants from any claim, action, or proceeding against the City, its Officials, Officers, Employees, or Agents to attach, set aside, void, or annul an approval of the City, its advisory agencies, appeal boards, or legislative body concerning implementation and construction of Tentative Tract Map No. 32786, which action is bought within the time period provided for in California Government Code Sections 65009 and /or 66499.37, and Public Resources Code Section 21167. The City will promptly notify the applicant of any such claim, action, or proceeding against the City and will cooperate fully with the defense. Agenda Item No. r Page of 10�_ Page Fifteen — City Council Minutes — October 11, 2005 TENTATIVE TRACT MAP NO. 32786 2. Tentative Tract Map No. 32786 will expire two (2) years from date of approval unless within that period of time an appropriate instrument has been filed and recorded with the County Recorder, or an extension of time is granted by the City of Lake Elsinore City Council in accordance with the Subdivision Map Act and the LEMC. 3. Tentative Tract Map No. 32786 shall comply with the State of California Subdivision Map Act and shall comply with all applicable requirements of the Lake Elsinore Municipal Code, Title 16 unless modified by approved Conditions of Approval. 4. Prior to final certificate of occupancy of Tentative Tract Map No. 32786, the improvements specified herein and approved by the Planning Commission and the City Council shall be installed, or agreements for said improvements, shall be submitted to the City for approval by the City Engineer, and all other stated conditions shall be complied with. All uncompleted improvements must be bonded for as part of the agreements. 5. The applicant shall comply with all the mitigations contained and identified in the Mitigated Negative Declaration No. 2005 -09. 6. All lots shall comply with minimum standards contained in the LEMC. 7. A precise survey with closures for boundaries and all lots shall be provided per the LEMC. 8. The applicant shall comply with all conditions of the Riverside County Fire Department. 9. The applicant shall meet all requirements of Elsinore Valley Municipal Water District (EVMWD). 10. All future structural development associated with this map shall require separate Design Review approval. 11. Prior to issuance of any grading permit and/or building permit, the applicant shall sign and complete an "Acknowledgment of Conditions" and shall return the executed original to the Community Development Department. 12. The applicant shall comply with the following City programs: the City Source Reduction and Recycling Element and Household Hazardous Waste Element, the County Solid Waste Management Plan and Integrated Waste Management Plan. 13. Prior to issuance of building permit, the applicant shall submit a letter of verification (will -serve letter) to the City Engineer, for all required utility services. Agenda Item No. i Pagelsof -4 Page Sixteen — City Council Minutes — October 11, 2005 14. The applicant shall pay applicable fees and obtain proper clearance from the Lake EIsinore Unified School District (LEUSD) prior to issuance of building permits. 15. The Multiple Species Habitat Conservation Fee (MSHCP) will be due upon issuance of each building permit. 16. The applicant shall pay all applicable fees including park fees. 17. The applicant shall meet all requirements of the providing electric utility company. 18. The applicant shall meet all requirements of the providing gas utility company. 19. The applicant shall meet all requirements of the providing telephone utility company. 20. A bond is required guaranteeing the removal of all trailers used during construction. 21. All signage shall be subject to Planning Division review and approval prior to installation. 22. The City's Noise Ordinance shall be met during all site preparation activity. Construction shall not commence before 7:00 AM and cease at 5:00 PM, Monday through Friday. 1400* Construction activity shall not take place on Saturday, Sunday, or any Legal Holidays. ENGINEERING 23. A grading plan signed and stamped by a Calif. Registered Civil Engineer shall be required if the grading exceeds 50 cubic yards or the existing flow pattern is substantially modified as determined by the City Engineer. 24. Prior to commencement of grading operations, applicant to provide to the City with a map of all proposed haul routes to be used for movement of export material. Such routes shall be subject to the review and approval of the City Engineer. 25. All grading shall be done under the supervision of a geotechnical engineer and he shall certify all slopes steeper than 2 to 1 for stability and proper erosion control. All manufactured slopes greater than 30 ft. in height shall be contoured. 26. The applicant shall adhere to the Conditions of Approval from the City Traffic Engineer dated September 14, 2005. The conditions are included in the Prior to Occupancy portion of the Conditions of Approval. 27. Tract Phasing Plan shall be approved by the City Engineer. Bond public improvements for each Phase as approved by the City Engineer. Agenda Item No. 1 Page of-g2 1-�, Page Seventeen — City Council Minutes — October 11, 2005 28. An Encroachment Permit shall be obtained prior to any work on City right -of -way. 29. All utilities except electrical over 12 KV shall be placed underground, as approved by the serving utility. Arrangements for relocation of utility company facilities (power poles, vaults, etc.) out of the roadway or alley shall be the responsibility of the property owner or his agent. 30. Underground water rights shall be dedicated to the City pursuant to the provisions of Section 16.52.030 (LEMC), and consistent with the City's agreement with the Elsinore Valley Municipal Water District. 31. The applicant shall install permanent bench marks to Riverside County Standards and at a location to be determined by City Engineer. 32. Provide fire protection facilities as required in writing by Riverside County Fire. Developer shall provide an approved open space conservation easement for the tracts open space with a fuel modification zone for a fire break to be maintained by a homeowner's association. 33. Open space lots adjacent to residential lots shall have areas designated as fuel modification i— zones for a firebreak to be maintained by a homeowner's association. 34. Applicant shall pay all applicable development fees, including but not all inclusive: TUMF, MSHCP,TIF and area drainage fees. 35. 10 year storm runoff shall be contained within the curb and the 100 year storm runoff shall be contained within the street right -of -way. When either of these criteria are exceeded, drainage facilities shall be provided. 36. Applicant shall protect all downstream properties from damages caused by alteration of the drainage patterns, i.e., concentrations or diversion of flow. Protection shall be provided by constructing adequate drainage facilities including enlarging existing facilities and /or by securing a drainage easement. A maintenance mechanism shall be in place for any private drainage facilities constructed on -site or off -site. Any grading or drainage onto private off site or adjacent property shall require a written permission to grade and /or a permission to drain letter from the affected landowner. 37. All drainage facilities in this tract shall be constructed to Riverside County Flood Control District Standards. An access road for maintenance to detention /water quality basins shall be provided. 38. All compaction reports, grade certifications, monument certifications (with tie notes delineated on 8 ' /z" x 11" Mylar) shall be submitted to the Engineering Division before final 10' inspection of public works improvements will be scheduled and approved. Agenda Item No. 1_6 Paged of� Page Eighteen — City Council Minutes — October 11, 2005 39. A precise survey with closures for boundaries and all lots shall be provided per the LEMC. 40. Street improvements including street lighting, traffic signals, and traffic signing and striping shall be required as part of this project. The improvements shall be prepared by a registered civil engineer and shall meet city and /or riverside county standards. 41. Street lighting and landscaping on public right -of -way shall be maintained by a maintenance assessment district or a homeowner's association. 42. All open space and slopes except for public parks and schools and flood control district facilities, outside the public right -of -way will be owned and maintained by either a home owner's association or private property owner. An access road for maintenance shall be provided. 43. All waste material, debris, vegetation and other rubbish generated during cleaning, demoliti on, clear and grubbing or other phases of the construction shall be disposed of at appropriate recycling centers. The applicant should contract with CR &R Inc. for recycling and storage container services, but the applicant may use the services of another recycling vendor. Another recycling vendor, other than CR &R Inc., cannot charge the applicant for bin rental or solid waste disposal. If the applicant is not using CR &R Inc. for recycling services and the recycling material is either sold or donated to another vendor, the applicant V, shall supply proof of debris disposal at a recycling center, including verification of tonnage by certified weigh master tickets. 44. In accordance with the City's Franchise Agreement for waste disposal & recycling, the applicant shall be required to contract with CR &R Inc. for removal and disposal of all waste material, debris, vegetation and other rubbish generated during cleaning, demolition, clear and grubbing or all other phases of construction. 45. Protect palm trees in place, or contact the Community Services of City of Lake Elsinore for Palm Tree Preservation Program, LEMC 5.78 Ordinance 1044. 46. On -site drainage shall be conveyed to a public facility, accepted by adjacent property owners by a letter of drainage acceptance, or conveyed to a drainage easement. 47. All natural drainage traversing the site shall be conveyed through the site, or shall be collected and conveyed by a method approved by the City Engineer. 48. Roof drains shall not be allowed to outlet directly through coring in the street curb. 49. Roofs should drain to a landscaped area. Agenda Item No.—Liz Page1alof -2 ,�-- Page Nineteen City Council Minutes — October 11, 2005 50. Applicant shall comply with all NPDES requirements in effect; including the submittal of an Water Quality Management Plan (WQMP) as required per the Santa Ana Regional Water Quality Control Board. 51. Education guidelines and Best Management Practices (BMP) shall be provided to residents of the development in the use of herbicides, pesticides, fertilizers as well as other environmental awareness education materials on good housekeeping practices that contribute to protection of storm water quality in the Riverside county NPDES Drainage Area Management Plan. Prior to Approval of Final Map, unless other timing is indicated, the subdivider shall complete the following or have plans submitted and approved, agreements executed and securities posted: 52. Applicant shall record C C & R's for maintenance of slopes, drainage facilities, and street lighting within the project. The C C & R's shall be approved by the Planning Director prior to recordation of final map. 53. Applicant shall enter into an agreement with the City for the construction of public works improvements and shall post the appropriate bonds prior to final map approval. 54. Applicant shall obtain all necessary off -site easements for off -site grading from the adjacent property owners prior to final map approval. 55. All Public Works requirements shall be complied with as a condition of development as specified in the Lake Elsinore Municipal Code (LEMC) prior to final map approval. 56. Make an offer of dedication for all public streets and easements required by these conditions or shown on the Tentative Map. All land so offered shall be granted to the City free and clear of all liens and encumbrances and without cost to the city. 57. Some of the improvements shown on the Map and /or required by these conditions are located off -site on property which neither the City nor the subdivider may have no title or interest to permit the improvements to be made without acquisition of title or interest. The subdivider shall pay all costs for acquisition of title or interest. 58. A Calif. Registered Civil Engineer shall prepare street and drainage improvement plans and specifications. Improvements shall be designed and constructed to Riverside County Road Department Standards, latest edition, and City Codes (LEMC 12.04 and 16.34). Street improvement plans shall show existing and future profiles at centerline of street, at top of curb and at centerline of the alley. The profiles and contours will extend to 50' beyond the property limits. Agenda Item No. � b Page of -4;?- Page Twenty — City Council Minutes — October 11, 2005 ,""W 59. Interior streets shall be dedicated and improved to public residential street standards (40'/60') or as shown in the map. 60. Construct half -width street improvements on Stoddard Street ( f e V street to A fieIa Avenue), Dryden Street, Dolbeer Street, Terra Cotta Road, and Lakeshore Drive along project frontage. The improvements shall include ac pavement, curb and gutter, sidewalk, street lighting, signing and striping, and necessary drainage improvements (Amended by Planning Commission on September 19, 2005). 61. Construct €ttl-1 half street improvements on Hoff Avenue along project frontage and as shown on the map (Amended by Planning Commission on September 20, 2005). 62. Construct a 24' temporary ac paved road that connects Hoff Avenue to extension of Terra Cotta Road. 63. Construct 24' temporary ac pavement on Stoddard Street, from A..fiela Avenue to Stevens Street (Amended by Planning Commission on September 20, 2005). 64. Traffic Signing and Striping plans shall be required with the street improvement plans. Signing and striping shall be installed in accordance with the plans approved by the City Traffic Engineer. V, 65. Street abandonment shall be processed and approved as part offinal map (Amended by Planning Commission on September 20, 200). Prior to Issuance of a Grading Permit: 66. Submit grading plans with appropriate security, Hydrology and Hydraulic Reports prepared by a Registered Civil Engineer for approval by the City Engineer. Developer shall mitigate any flooding and /or erosion downstream caused by development of the site and /or diversion of drainage. 67. Provide soils, geology and seismic report including street design recommendations. Provide final soils report showing compliance with recommendations. 68. An Alquis -Priolo study shall be performed on the site to identify any hidden earthquake faults and /or liquefaction zones present on -site. 69. The applicant shall obtain all necessary off-site easements for off -site grading and /or drainage acceptance from the adjacent property owners prior to grading permit issuance. Agenda Item No. 1.6 Page27of. 42 Page Twenty -one — City Council Minutes — October 11, 2005 70. Applicant to provide erosion control measures as part of their grading plan. The applicant shall contribute to protection of storm water quality and meet the goals of the BMP in Supplement "A" in the Riverside County NPDES Drainage Area Management Plan. 71. Applicant shall provide the city with proof of his having filed a Notice of Intent with the Regional Water Quality Control Board for the National Pollutant Discharge Elimination System ( NPDES) program with a storm water pollution prevention plan prior to issuance of grading permits. The applicant shall provide a SWPPP for post construction, which describes BMP's that will be implemented for the development and including maintenance responsibilities. Prior to Issuance of Building Permit: 72. All Public Works requirements shall be complied with as a condition of development as specified in the Lake Elsinore Municipal Code (LEMC) prior to building permit. 73. Submit a "Will Serve" letter to the City Engineering Division from the applicable water �- agency stating that water and sewer arrangements have been made for this project and specify the technical data for the water service at the location, such as water pressure and volume etc. Submit this letter prior to applying for a building permit. 74. If the project is within the FEMA 100 -yr floodplain, the applicant must submit a Conditional Letter of Map Revision (CLOMR) to FEMA prior to issuance of building permits. A Letter of Map Revision (LOMR) must be approved from FEMA prior to occupancy. 75. Pay all Capital Improvement Mitigation and Plan Check fees (LEMC 16.34). Prior to Occupancy: 76. Pay all fees and meet requirements of an encroachment permit issued by the Engineering Division for construction of off -site public works improvements (LEMC12.08, Res.83 -78). Per Condition No. 83 AD feeg and for an enereaehment perrnit shall be fulfilled before Gertifieate of Geetipaney (Amended by Planning Commission on September 20, 2005 ). 77. Prior to final certificate of occupancy of the Tentative Tract Map, the improvements specified herein and approved by the Planning Commission and the City Council shall be installed, or agreements for said improvements, shall be submitted to the City for approval by the City Engineer, and all other stated conditions shall be complied with. All uncompleted improvements must be bonded for as part of the agreements. Agenda Item No. A6 ' + Page of `t-2— Page Twenty -two — City Council Minutes — October 11, 2005 78. All compaction reports, grade certifications, monument certifications (with tie notes delineated on 8 1/2" x 11" Mylar) shall be submitted to the Engineering Division before final inspection of off -site improvements will be scheduled and approved. 79. If applicable, the applicant to provide FEMA elevation certificates prior to certificate of occupancies 80. All public improvements shall be completed in accordance with the approved plans to the satisfaction of the City Engineer. 81 All traffic signing and striping shall be completed in accordance with the approved plans to the satisfaction of the City Traffic Engineer. 82. Water and sewer improvements shall be completed in accordance with Water District requirements. 83. This project is subject to the following traffic conditions of approval by the City Traffic Engineer: • By the 100th Certificate of Occupancy (C of O) construct Terra Cotta Road from the project's north boundary to Nichols Road and construct Nichols Road from Terra Cotta Road to the existing pavement section west of Collier Avenue. These roads shall be designed to general plan circulation alignment and standards, and shall be paved with a travel lane in each direction. • By the 100th C of O a traffic signal shall be constructed and operational at the intersection of Nichols Road and Collier Avenue. • By the 3001h C of O traffic signals shall be constructed and operational at the I -15 freeway northbound ramp and southbound ramp intersections at Nichols Road. • If Terra Cotta Road and Nichols Road cannot be constructed as defined in the first item described above by the 100th C of O, a traffic signal shall be constructed and operational at the intersection of Lake Street and Temescal Canyon Road by the 100th C of O. • If Terra Cotta Road and Nichols Road cannot be constructed as defined in the first item described above by the 100th C of O, traffic signals shall be designed, constructed and operational at the intersections of Lake Street and the I -15 freeway southbound and northbound ramps by the 2001h C of O if the above referenced Terra Cotta Road and Nichols Road segments are not constructed by the 2001h C of O. • By the 50th C of O, the intersection of Terra Cotta Road and Lakeshore Drive shall be fully improved and signalized. This intersection will require special design as determined by the City Engineer. • By the 250th C of O, the intersection of Dryden Street and Lakeshore Drive shall be fully improved and signalized. Agenda Item No. 1 j6 Page—of ` 4 �'` Page Twenty -three — City Council Minutes — October 11, 2005 23. Mitigated Negative Declaration No. 2005- 07/Mitigation Monitoring Program, Tentative Tract Map No. 33370 (for condominium purposes) and Residential Design Review No. 2005 -05. Mayor Magee introduced the item and deferred to Planning Manager Preisendanz. Mr. Preisendanz gave in -depth overview of the item. He indicated that the project went before the Planning Commission on October 4, 2005. He further indicated that the Planning Commission was recommending approval to the City Council. Leonard Leichnitz, LLMOS Communities, noted that this was a unique project. He indicated that this project was detached condominiums. He noted that there would be driveways for the units. Councilmember Buckley commented that small -lot developments needed strong HOA's. He noted that this project had a very strong HOA. MOVED BY BUCKLEY, SECONDED BY HICKMAN AND CARRIED BY UNANIMOUS VOTE TO ADOPT RESOLUTION NO. 2005-151, APPROVING MITIGATD NEGATIVE DECLARATION NO. 2005- 071MITIGATED MONITORING PROGRAM. MOVED BY BUCKLEY, SECONDED BY HICKMAN AND CARRIED BY UNANIMOUS VOTE TO ADOPT RESOLUTION NO. 2005-1529 APPROVING TENTATIVE TRACT MAP NO. 33370 (FOR CONDOMINIUM PURPOSES). MOVED BY BUCKLEY, SECONDED BY HICKMAN AND CARRIED BY UNANIMOUS VOTE TO ADOPT RESOLUTION NO. 2005-1539 APPROVING RESIDENTIAL DESIGN REVIEW NO. 2005-02. Agenda Item No. 16 Page of —4-2— Page Twenty -four — City Council Minutes — October 11, 2005 GENERAL CONDITIONS The applicant shall defend (with counsel acceptable to the City), indemnify, and hold harmless the City, its Official, Officers, Employees, and Agents from any claim, action, or proceeding against the City, its Official, Officers, Employees, or Agents to attach, set aside, void, or annul an approval of the City, its advisory agencies, appeal boards, or legislative body concerning the Tentative Condominium Map, which action is bought within the time period provided for in California Government Code Sections 65009 and /or 66499.37, and Public Resources Code Section 21167. The City will promptly notify the Applicant of any such claim, action, or proceeding against the City and will cooperate fully with the defense. If the City fails to promptly notify the Applicant of any such claim, or proceeding, the Applicant shall not, thereafter, be responsible to defend, indemnify, or hold harmless the City. 2. The applicant shall submit a money order, cashier's check or check, made payable to the County Recorder, for filing of a Certification of Fee Exemption "De Minimis Impact Finding." in the amount of $64.00 to the Planning Division within 48 hours of the City Council approval date for the required Environmental Filing. 3. The applicant shall comply with those mitigation measures identified in the Mitigated Negative Declaration No. 2005 -07 /Mitigation Monitoring Report and Program (State Clearinghouse No.2005091060) for the "Tessera" project. 4. The appheant shaH eomply with the re )f the State Bill 18 relating to Trib2d Consultation. Per mtg. w. /Rolfe Preisendanz 9 -26 -05 5. Conditional Use Permit No. 2005 -01 for the condominium project shall run with the land and shall continue to be valid upon any change of ownership of the site or structure which was the subject of the Conditional Use Permit (CUP) application. TENTATIVE PARCEL MAP NO. 33370 (FOR CONDOMINIUM PURPOSES) 6. The Tentative Parcel Map will expire two (2) years from date of approval unless within that period of time the CC &R's and an appropriate instrument has been filed and recorded with the County Recorder, or an extension of time is granted by the City of Lake Elsinore City Council in accordance with the Subdivision Map Act. 7. The Tentative Parcel Map shall comply with the State of California Subdivision Map Act and shall comply with all applicable requirements of the Lake Elsinore Municipal Code, Title 16 unless modified by approved Conditions of Approval. Agenda Item No. Page of 2— 1*0-` Page Twenty -five — City Council Minutes — October 11, 2005 8. Prior to final certificate of occupancy of Tentative Parcel Map, the improvements specified herein and approved by the Planning Commission and the City Council shall be installed, or agreements for said improvements, shall be submitted to the City for approval by the City Engineer, and all other stated conditions shall be complied with. All uncompleted improvements must be bonded for as part of the agreements. Prior to issuance of a grading permit, the applicant shall prepare and record CC &R's against the condominium complex. The CC &R's shall be reviewed and approved by the Community Development Director or Designee and the City Attorney. The CC &R's shall include methods of maintaining common areas, parking and drive aisle areas, landscaped areas including parkways, and methods for common maintenance of all underground, and above ground utility infrastructure improvements necessary to support the complex. In addition, CC &R's shall established methods to address design improvements. 10. No unit in the development shall be sold unless a corporation, association, property owner's group or similar entity has been formed with the right to financially assess all properties individually owned or jointly owned which have any rights or interest in the use of the common areas and common facilities in the development, such assessment power to be sufficient to meet the expenses of such entity, and with authority to control, and duty to maintain, all said mutually available features of the development. Such entity shall operate under recorded CC &R's which shall include compulsory membership of all owners of lots and /or dwelling units and flexibility of assessments to meet changing costs of maintenance, repairs, and services. Recorded CC &R's shall permit enforcement by the City for provisions required as Conditions of Approval. The developer shall submit evidence of compliance with this requirement to, and receive approval of, the City prior to making any such sale. This condition shall not apply to land dedicated to the City for public purposes. 11. Provisions to restrict parking upon other than approved and developed parking spaces shall be written into the covenants, conditions and restrictions for each project. 12. The Home Owner's Association shall be established prior to the sale of the first dwelling unit. 13. Membership in the Home Owner's Association shall be mandatory for each buyer and any successive buyer. 14. Reciprocal covenants, conditions, and restrictions and reciprocal maintenance agreements shall be established which will cause a merging of all development phases as they are completed, and embody one (1) homeowner's association with common area for the total development of the subject project (Phase I) and the proposed project (Phase II). Agenda Item No. I Page 'Z `of LA Page Twenty -six — City Council Minutes — October 11, 2005 15. In the event the association or other legally responsible person(s) fail to maintain said common area in such a manner as to cause same to constitute a public nuisance, said City may, upon proper notice and hearing, institute summary abatement procedures and impose alien for the costs of such abatement upon said common area, individual units or whole thereof as provided by law. 16. Each unit owner shall have full access to commonly owned areas, facilities and utilities. RESIDENTIAL DESIGN REVIEW NO. 2005-02 17. Design Review approval for Residential Design Review No. 2005 -02 will lapse and be void unless building permits are issued within one (1) year of City Council approval. The Community Development Director may grant an extension of time of up to one (1) year per extension, prior to the expiration of the initial Design Review approval. Application for a time extension must be submitted to the City of Lake Elsinore one (1) month prior to the expiration date. 18. Conditions of Approval shall be reproduced on page one of building plans submitted to the Building Division Plan Check. All Conditions of Approval shall be met prior to the issuance of a Certificate of Occupancy and release of utilities. 19. The dwelling units are two -story, without elevators, and therefore are exempt from accessibility requirements. The pool area must comply with all accessibility as outlined in the 2001 California Building Code Sections 1104B.4.3 and 1132B.2. If restroom facilities are provided at the pool area they must be accessible to the Physically Disabled. 20. All site improvements approved with this request shall be constructed as indicated on the approved exhibits and /or attachments contained herein. Revisions to approved site plans or building elevations shall be subject to the review of the Community Development Director. All plans submitted for Building Division Plan Check shall conform to the submitted plans as modified by Conditions of Approval, or the Planning Commission / City Council through subsequent action. 21. All roof mounted or ground support air conditioning units or other mechanical equipment incidental to development shall be architecturally screened or shielded by landscaping so that they are not visible from neighboring property or public streets. Any material covering the roof equipment shall match the primary wall color. 22. All exterior on -site lighting shall be shielded and directed on -site so as not to create glare onto neighboring property and streets or allow illumination above the horizontal plane of the fixture. All light fixtures shall match the architectural style of the building. Agenda Item No. 1-6 -"NO* Paga4p of Ll ,•_� Page Twenty -seven — City Council Minutes — October 11, 2005 23. The applicant shall meet Americans with Disabilities Act (ADA) requirements. The club house shall comply with all ADA requirements, including an accessible path of travel from the public way and including an accessible parking space. Any common use areas would also be subject to accessibility requirements. 24. Trash enclosures shall be constructed per City standards as approved by the Community Development Director or Designee. 25. Applicant shall use roofing materials with Class "A" fire rating. 26. The Planning Division shall approve the location of any construction trailers utilized during construction. All construction trailers shall require a $1,000.00 cash bond processed through the Planning Division. 27. Materials and colors depicted on the plans and materials board shall be used unless modified by the Community Development Director or designee. 28. Decorative paving shall be included at the entryway and shall be shown on the construction drawings submitted to Building and Safety. 29. Parking stalls shall be double - striped with four -inch (4 ") lines two feet (2') apart. 30. All exposed slopes in excess of three feet (3') in height shall have a permanent irrigation system and erosion control vegetation installed, approved by the Planning Division. PRIOR TO THE ISSUANCE OF A GRADING PERMIT 31. Prior to the commencement of grading operations, the applicant shall provide a map of all proposed haul routes to be used for movement of dirt material. Such routes shall be subject to the review and approval of the City Engineer. A bond may be required to pay for damages to the public right -of —way, subject to the approval of the City Engineer. 32. Prior to issuance of any grading permit or building permits, the applicant, shall sign and complete an "Acknowledgement of Conditions" form and shall return the executed original to the Planning Division for inclusion in the case records. 33. The applicant shall submit a photometric study for those light standards located in the proposed condominium project. Said study shall ensure that parking lot lights will not disturb neighboring land uses and shall be approved by the Community Development Director or designee. Agenda Item No. Page of Page Twenty -eight — City Council Minutes — October 11, 2005 PRIOR TO ISSUANCE OF A BUILDING PERMIT 34. Prior to the issuance of building permits, the applicant shall enter into an agreement with the Redevelopment Agency of the City of Lake Elsinore to provide 15% of the units in the project as affordable housing units in accordance with the requirements of Section 33413(b) of the California Community Redevelopment Law or an alternative equivalent action which may include (without limitation) dedication of vacant land, construction of affordable units on another site, or payment of an in lieu fee calculated to provide sufficient funds to underwrite the long -term affordability of an equivalent number of affordable dwelling units constructed or substantially rehabilitated on other sites within the City's redevelopment project areas. 35. Prior to the issuance of the first building permit, the applicant shall annex into Community Facilities District No. 2003 -1 to offset the annual negative impacts of the project on public safety operations and maintenance issues in the City. 36. Prior to the issuance of the first building permit, the applicant shall annex into Lighting and Landscape Maintenance District No.l to offset the annual negative fiscal impacts of the project on public right -of -way landscaped areas to be maintained by the City and for street lights in the public right -of -way for which the City will pay for electricity which includes a maintenance fee to Southern California Edison. 37. Upen eemplefien of the Fire Station impaet Stud), and othef impaet fee studies, developer *-WA0 shall pay ;,., paet fee-Per mtg w /Rolfe Preisendanz and Matt Pressey 9 -26 -05 38. Prior- to the issuanee of a building .�iauia f the applieant shall enter- into the Cr-ifne Free N4014i Family Housing Pr-egr-affl, ptffsuant to the regulations set by the Riverside Count), , Lake Elsinore --r- ���me,r- Crime — Prevention Unit, and -- shall — comply --- with --all VelLiIT .�; fiea4iens r-equif °a Per mtg. w /Rolfe Preisendanz 9 -29 -05 39. Pursuant to Ordinance No. 1124, prior to the issuance of a building permit the applicant shall pay the applicable Multiple Species Habitat Conservation Plan (MSHCP) Fee of $1,057.00 per lot. 40. Three (3) sets of the Final Landscaping/ Irrigation Detail Plan shall be submitted, reviewed and approved by the City's Landscape Architect Consultant and the Community Development Director or designee, prior to issuance of building permit. A Landscape Plan Check & Inspection Fee will be charged prior to final landscape approval based on the Consultant's fee plus forty percent (40 %) City fee. a. All planting areas shall have permanent and automatic sprinkler system with 100% plant and grass coverage using a combination of drip and conventional irrigation methods. Agenda Item No. Page-"C$ f Ll -*1_1 Page Twenty -nine - City Council Minutes — October 11, 2005 b. Applicant shall plant street trees, selected from the City's Street Tree List, a maximum of thirty feet (30) apart and at least twenty -four -inch (24 ") box in size. c. All planting areas shall be separated from paved areas with a six inch (6 ") high and six inch (6 ") wide concrete curb. d. Planting within fifteen feet (15') of ingress /egress points shall be no higher than thirty -six inches (36 "). e. Landscape planters shall be planted with an appropriate parking lot shade tree to provide for 50% parking lot shading in fifteen (15) years. f. Any transformers and mechanical or electrical equipment shall be indicated on landscape plan and screened as part of the landscaping plan. g. The landscape plan shall provide for ground cover, shrubs, and trees and meet all requirements of the City's adopted Landscape Guidelines. Special attention to the use of Xeriscape or drought resistant plantings with combination drip irrigation system to be used to prevent excessive watering. h. All landscape improvements shall be bonded 100% for material and labor for two years from installation sign -off by the City. Release of the landscaping bond shall be requested by the applicant at the end of the required two years with approval /acceptance by the Landscape Consultant and Community Development Director or Designee. i. All landscaping and irrigation shall be installed within affected portion of any phase at the time a Certificate of Occupancy is requested for any building. All planting areas shall include plantings in the Xeriscape concept, drought tolerant grasses and plants. j. Final landscape plan must be consistent with approved site plan. k. Final landscape plans to include planting and irrigation details. 41. Applicant shall comply with the requirements of the Elsinore Valley Municipal Water District. Proof shall be presented to the Chief Building Official prior to issuance of building permits and final approval. 42. Prior to issuance of building permits, applicant shall provide assurance that all required fees to the Lake Elsinore Unified School District have been paid. Agenda Item No. 16 Page_:�_Iof. Page Thirty — City Council Minutes — October 11, 2005 43. Prior to issuance of building permits, applicant shall provide assurance that all requirements of the Riverside County Fire Department have been met. 44. Prior to issuance of building permits, applicant shall pay park -in -lieu fee in effect at time of building permit issuance. ENGINEERING 45. All Public Works requirements shall be complied with as a condition of development as specified in the Lake Elsinore Municipal Code (LLEMC) prior to building permit. 46. Pay all Capital Improvement and Plan Check fees (LEMC 16.34, Resolution 85 -26). 47. Submit a "Will Serve" letter to the City Engineering Division from the applicable water agency stating that water and sewer arrangements have been made for this project. Submit this letter prior to final map approval. 48. Arrangements for relocation of utility company facilities (power poles, vaults, etc.) out of the roadway or alley shall be the responsibility of the property owner or his agent. 49. Provide fire protection facilities as required in writing by Riverside County Fire. Secure, from Fire Department, approval of the 36 feet curb -to -curb wide street with parked cars on one side as fire lanes and turning radius at intersections of two 36 feet curb -to -curb streets for fire engines. 50. In accordance with the City's Franchise Agreement for waste disposal & recycling, the applicant shall be required to contract with CR &R Inc. for removal and disposal of all waste material, debris, vegetation and other rubbish generated during cleaning, demolition, clear and grubbing or all other phases of construction. If the applicant is not using CR &R Inc., for recycling services and the recycling material is either sold or donated to another vendor, the applicant shall supply proof of debris disposal at a recycling center, including verification of tonnage by certified weigh master tickets. 51. All open space and slopes except for public parks and schools and flood control district facilities, outside the public right -of -way will be owned and maintained by either a homeowner's association or private property owner. 52. Applicant shall record CC &R's for the tract prohibiting on -street storage of boats, motorhomes, trailers and trucks over one -ton capacity, roof mounted or front yard microwave satellite antennas. The CC &R's shall be approved by the Community Development Director prior to recordation of final map. Agenda Item No. Page�f Page Thirty -one — City Council Minutes — October 11, 2005 53. Applicant shall cause to be recorded a CC &R's with recordation of final map which provides for irrevocable reciprocal parking, circulation, loading and landscape maintenance easement in favor of the units in each lot, subject to the approval of the Director of Community Development and the City Attorney. The CC &R's shall enforce standards of building maintenance, participation in landscape maintenance, prohibition of outside vehicle or material storage. 54. Applicant shall provide a homeowner's association with CC &R's for maintenance of the open space. 55. Existing access easements over property, if any, must be addressed to the satisfaction of the easement owners prior to final map approval. Street Improvements: 56. Construct all public works improvements per approved street plans (LEMC 12.04). Plans must be approved and signed by the City Engineer prior to final map approval (LEMC 16.34). Franklin Street shall be improved from property line to one foot beyond centerline of Franklin Street and it will extend within the frontage of the property plus any transition beyond as required per approved street improvement plans. Avenue 5 will be graded within the 60 feet wide right of way. Avenue 5 shall be improved from property line to minimum of 12 feet beyond center -line of Avenue 5 and within full length of the property on Avenue 5. 57. Street improvement plans and specifications shall be prepared by a Calif. Registered Civil Engineer. Improvements shall be designed and constructed to Riverside County Road Department Standards, latest edition, and City Codes (LEMC 12.04 and 16.34). Franklin Street and Avenue 5 plans shall show profiles at centerline and top of curb to 50 foot beyond the property frontage length. The profile of the Avenue 5 plans shall be designed from intersections of Franklin Street to Mill Street. 58. Applicant shall enter into an agreement with the City for the construction of public works improvements and shall post the appropriate bonds prior to final map approval. 59. Desirable design grade for local streets should not exceed 9 %. The maximum grade of 15% should only be used because of the design constraints. 60. Interior streets shall be designed with maximum 5% as the desired grade and intersecting streets shall meet at a maximum grade of 6 %. Each leg of the intersection approach shall be a minimum of 40 -feet long at a maximum 6% grade. 61. Pay all fees and meet requirements of encroachment permit issued by the Engineering Division for construction of public works improvements (LEMC 12.08 and Resolution 83 -78). Agenda Item No. 16 Page of 42z Page Thirty -two — City Council Minutes — October 11, 2005 62. All compaction reports, grade certifications, monument certifications (with tie notes delineated on 8 ' /z" x 11" Mylar) shall be submitted to the Engineering Division before final inspection of public works improvements will be scheduled and approved. 63. The applicant shall install two permanent benchmarks to Riverside County Standards and at a location to be determined by City Engineer. 64. Provide street lighting, at interval of 200 +/_ 20 feet, and show lighting improvements as part of street improvement plans as required by the City Engineer. Revise street lighting on Franklin Street to provide street lights at intersection of Street "A" with Franklin Street, and on Avenue 5 and its intersection with Street "D ". 65. Developer shall install blue reflective pavement markers in the street at all fire hydrant locations. 66. Applicant shall submit a traffic control plan showing all traffic control devices for the tract to be approved prior to final map approval. All traffic control devices shall be installed prior to final inspection of public improvements. This includes No Parking and Street Sweeping Signs for streets within the tract. 67. All improvement plans and tract maps shall be digitized. At Certificate of Occupancy applicant shall submit tapes and /or discs which are compatible with City's ARC Info /GIS or developer to 14.00+ pay $1,000 per sheet for City digitizing. 68. All utilities except electrical over 12 kv shall be placed underground, as approved by the serving utility. 69. Intersection site distance shall meet the design criteria of the CALTRANS Design Manual (particular attention should be taken for intersections on the inside of curves). If site distance can be obstructed, a special limited use easement must be recorded to limit the slope, type of landscaping and wall placement. 70. Intersecting streets on the inside radius of a curve will only be permitted when adequate sight distance is verified by a registered civil engineer. :74. Loeal streets shall have sixty (60) ft. fight of way with forty (40) ft. eurb to euf-b. Restrieted laeal interiat double leaded streets shall net hwve less than a 50 ft. right of way with 36 ft. eurb to euf-b and a 3 ft. titAity eftseffiefif an eaeh side of the street. Siogle loaded local streets shall not have less than a 44 ft. right of-way with and a 36 ft. etffb Per mtg w /Rolfe Preissendanz 9-29-05 Agenda Item No. Paggf Page Thirty -three — City Council Minutes — October 11, 2005 Traffic: 72. Developer has submitted a traffic study; it has been reviewed by City Traffic Engineer. The study show that the volume of traffic will impacts the intersection of the Main Street and Franklin Street, and that the intersection needs to be signalized to mitigate the impact. 73. The Study also shows that the centerline radius of Franklin Street at the northeast corner of the project should be a minimum of 300 feet. 74. The General Plan calls for extension of Pottery Street to Auto Center Drive to fit between the northeast corner of this project and the freeway. Traffic study shows that there is no need to dedicate additional right -of -way for this purpose. 75. Developer shall construct four way traffic signal system at the intersection of Franklin Street and Main Street. The poles and arms of the traffic signals shall be compatible with the downtown area architectural design theme. Developer shall be reimbursed for the traffic signal system through the City's TIF funds. 76. No residential lot shall front any public roads; access to the project shall be restricted on Franklin Street and Avenue 5 and so noted on the final map. Grading: 77. Apply and obtain a grading permit with appropriate security prior to building permit issuance. A grading plan signed and stamped by a Calif. Registered Civil Engineer shall be required if the grading exceeds 50 cubic yards or the existing flow pattern is substantially modified as determined by the City Engineer. If the grading is less than 50 cubic yards and a grading plan is not required, a grading permit shall still be obtained so that a cursory drainage and flow pattern inspection can be conducted before grading begins. 78. Applicant shall obtain all necessary off -site easements for off -site grading from the adjacent property owners prior to final map approval. 79. Provide soils, geology and seismic report including street design recommendations. Provide final soils report showing compliance with recommendations. 80. All grading shall be done under the supervision of a geotechnical engineer and he shall certify all slopes steeper than 2 to 1 for stability and proper erosion control. All manufactured slopes greater than 30 ft. in height shall be contoured. 81. Prior to commencement of grading operations, applicant to provide to the City with a map of all proposed haul routes to be used for movement of export material. Such routes shall be subject to the review and approval of the City Engineer. Agenda Item No. Page. f Page Thirty -four — City Council Minutes — October 11, 2005 -"me 82. Applicant to provide to the City a photographic baseline record of the condition of all proposed public City haul roads. In the event of damage to such roads, applicant shall pay full cost of restoring public roads to the baseline condition. A bond may be required to ensure payment of damages to the public right -of -way, subject to the approval of the City Engineer. Drainage: 83. Individual lot drainage shall be conveyed to a public facility, including streets and /or drainage channel, or accepted by adjacent property owners by a letter of drainage acceptance or conveyed to a drainage easement. 84. On site drainage facilities located outside of road right -of -way should be contained within drainage easements shown on the final map. A note should be added to the final map stating: "Drainage easements shall be kept free of buildings and obstructions." 85. All natural drainage traversing site shall be conveyed through the site, or shall be collected and conveyed by a method approved by the City Engineer. 86. Submit Hydrology and Hydraulic Reports for review and approval by City Engineer and the Riverside County Flood Control District prior to approval of final map. Developer shall mitigate any flooding and /or erosion caused by development of site and diversion of drainage. 87. Identify potential runoff pollutants associated with the proposed project and address it in project- specific WQMP. 88. The detention basin shall address Hydraulic Conditions of Concern. It shall achieve post development runoff flow rates, volumes, velocities and durations that prevents significant increases in down stream erosion compared to the pre - development condition and prevent significant adverse impact on adjacent properties during the 2 -year and 10 -year, 24 -hour rainfall event. 89. Address the water quality and passageway of the daily nuisance runoff thru the detention basin /water quality area. 90. Address silting of streets of development famn the runeff of property On the west of the site that drains thf-ough the streets ef dhe per mtg w /Rolfe Preisendanz 9 -29 -05 91. Provide outlet structure and riprap at storm drain outlet. 92. All drainage facilities in this tract shall be constructed to Riverside County Flood Control District Standards. 93. Storm drain inlet facilities shall be appropriately stenciled to prevent illegal dumping in the drain system, the wording and stencil shall be approved by the City Engineer. ..ire' Agenda Item No.—L-b Page of i 10_� Page Thirty -five — City Council Minutes — October 11, 2005 94. Roof and yard drains will not be allowed to outlet directly through cuts in the street curb. Roof drains must be drained to a landscaped area, or be treated per WQMP requirements prior to release into public drainage system or other properties. 95. 10 year storm runoff should be contained within the curb and the 100 year storm runoff should be contained within the street right -of -way. When either of these criteria is exceeded, drainage facilities should be installed. 96. A drainage aeeeptartee letter wifl be neeessary from the downstrearn property owners for Out letting the proposed stermwater ridn off an Tir. Per meeting w /Rolfe Preisendanz 9 -29 -05 drain &eiht for the Aventie 5 surrounding watershed from out let of the on site detention bastin to an out let into existing drain diteh in Pell street. Per meeting i •. Brady 9-29-1 98. Developer shall be subject to all Master Planned Drainage fees and will receive credit for all Master Planned Drainage facilities constructed. le - 99. Applicant shall provide the city with proof of his having filed a Notice of Intent with the Regional Water Quality Control Board for the National Pollutant Discharge Elimination System ( NPDES) program with a storm water pollution prevention plan prior to issuance of grading permits. The applicant shall provide a SWPPP for post construction which describes WQMP that will be implemented. 100. Education guidelines and Best Management Practices (BMP) shall be provided to residents of the development in the use of herbicides, pesticides, fertilizers as well as other environmental awareness education materials on good housekeeping practices that contribute to protection of stormwater quality and met the goals of the BMP in Supplement "A" in the Riverside County NPDES Drainage Area Management Plan. Dedication: 101. Dedicate a 30' wide strip of street right -of -way along the easterly property line along Avenue 5. Dedicate additional right -of -ay for a standard corner cutback for the future curb return at the northeasterly corner of the lot for a 300 feet radius horizontal curve at centerline of Franklin Street. See Traffic section for other possible dedication requirements. Miscellaneous: 102. Show location of all perimeter walls on Tentative Tract Map. End of Conditions Note: * Italics indicates addition to text, s it euC, indicates removal from text. b Agenda Item No. Pagef Page Thirty -six — City Council Minutes - October 11, 2005 BUSINESS ITEMS 31. Employment agreement for City Clerk. Mayor Magee introduced the item and deferred to City Attorney Leibold. City Attorney Leibold gave an overview of the item. She indicated that it was 2 -year employment agreement between the City and Frederick Ray. MOVED BY SCHIFFNER, SECONDED BY KELLEY TO APPROVE THE EMPLOYMENT AGREEMENT BETWEEN THE CITY OF LAKE ELSINORE AND FREDERICK RAY. Councilmember Kelley congratulated Mr. Ray on his appointment. Councilmember Buckley congratulated Mr. Ray on his appointment. Councilmember Hickman congratulated Mr. Ray on his appointment. 1•+' Mayor Magee commented that the Council made the right choice. THE FOREGOING MOTION CARRIED BY UNANIMOUS VOTE. 32. Railroad Canyon Road rock slide re air. Mayor Magee introduced the item and deferred to City Manager Brady. City Manager Brady spoke briefly on the item and deferred to City Engineer Seumalo. City Engineer Seumalo gave an overview of the staff report. He noted the options were listed in the staff report. Option 1 was the installation of rock bolts in conjunction with a wire mesh blanket, which would help stabilize the slope. Option 2 was similar to Option 1 with a reduced number of rock bolts placed strategically. Option 3 was to only install the blanket and catchment fence. He indicated that there were two other alternatives Agenda ltem No. b Pagpi—of —t 10-1- Page Thirty -seven — City Council Minutes — October 11, 2005 mentioned at the 4 p.m. session. Alternative 1 was the I -beam fence at the base of the slope. Alternative 2 was a new product of alternate bolting system. He indicated that staff was recommending the implementation of Option 2, but was requesting direction from Council with respect to the other alternatives. MOVED BY BUCKLEY TO APPROVE OPTION 2 AND DIRECT STAFF TO CONTINUE THE PLANNING PROCESS AND INVESTIGATE OTHER ALTERNATIVES AND BRING BACK THEIR FINAL RECOMMENDATION FOR COUNCIL APPROVAL WITHIN THE PERAMETERS, SPECIFICALLY WITHIN THE AMOUNT OF MONEY SET FOR OPTION 2 AND TO BRING THE ITEM BACK AT THE NOVEMBER 8TH COUNCIL MEETING. Councilmember Buckley commented that there was a new machine called the soil nail launcher. He noted that it jammed rods 20 feet into solid rock. Councilmember Hickman indicated that he would like to see a continuation of the item. He expressed that he felt it would be a larger area than anticipated. He suggested that staff gather more options and bring the item back to Council. THE FOREGOING MOTION SECONDED BY KELLEY AND CARRIED BY A VOTE OF 4 -1 WITH HICKMAN CASTING THE DESCENDING VOTE. 33. Request to provide funding for the Vick Knight Community Library at Lakeside High School. Mayor Magee introduced the item and deferred to City Manager Brady. City Manager Brady gave an in -depth overview of the item. He indicated that this was part of the capital projects budget approved by the City Council this fiscal year. 10-1 Barbara Anderson, 304 N. Lewis Street, commented that the library was Agenda Item No. Paga�f 2- Page Thirty -eight — City Council Minutes — October 11, 2005 appreciative of the funds allocated by the City. She commented on an article indicating that most of the money in the past had been spent on materials for children. She commented that the library covered the youth and the elderly and all should be represented. She also commented that the article indicated that there was $734,000 in the library fund. She reminded everyone that years ago the City had borrowed $300,000 from the library fund and to her knowledge it had not been paid back. She commented that the money owed should increase the amount in the library fund. She mentioned that it was national archive month. Nancy Johnson, Riverside County Librarian, thanked the Council for the support for the first Lake Elsinore Public Library. She noted that the celebration for the grand opening of the Vick Knight Community Library would be held on October 29`h. She reassured the community that the library would not neglect anyone in the community. She indicated that the area was populated with young families. Councilmember Kelley commented on the possibility of a new library with the mitigation fees. She noted that every new house brought in $150; and Council would definitely get the other $300,000 back into the budget. She indicated that the City needed a new library in the downtown area. MOVED BY KELLEY, SECONDED BY SCHIFFNER TO ALLOCATE HALF OF THE $80,000 TO ALLOW THE COUNTY LIBRARIAN TO PURCHASE BOOKS FOR THE NEW VICK KNIGHT COMMUNITY LIBRARY. Councilmember Buckley indicated that some of the money had been paid back to the library fund. He inquired the exact dollar amount paid so far. Administrative Services Director Pressey indicated that the City pay's $50,000 annually. He indicated that the City was moving towards laserfisch technology; and was one of the new tasks of the City Clerk. THE FOREGOING MOTION CARRIED BY UNANIMOUS VOTE. Agenda Item No. 16 Pa,a&f_q;2_ I*—, Page Thirty -nine — City Council Minutes — October 11, 2005 THE REGULAR CITY COUNCIL MEETING WAS RECESSED AT 7:53 P.M. THE REGULAR CITY COUNCIL MEETING RECONVENED AT 7:58 P.M. PUBLIC COMMENTS - NON - AGENDIZED ITEMS - 3 MINUTES Vincent Rogers, 16395 Broadway Street, commented on a concrete wall built by his neighbor. He indicated that the wall was cracked in places over the 6 foot limit. He indicated that if the wall had faced the street it would not have been allowed in its present condition. He indicated that he was informed by staff that it was a civil matter. He indicated that any attempt to speak with his neighbor resulted in verbal abuse. He noted that they filed a small claims lawsuit. He stated that the judge had indicated that the City Council should resolve the matter and ordered both parties to return to court. on November 30th to hear the Council decision. He referred to LEMC Chapter 8. 18, section 8.18.010, part e. He also referred to Chapter 8.18, section 8.18.020, part a, subsection 6. He requested that the Council helped resolve the issue. Mayor Magee commented that staff would be following up on the issue. Michael O'Neal, Lake Elsinore, commented on his personal relationship with the Mayhall family. He indicated that he thought it was a nice gesture that the Council was contemplating naming the Main Street Park after Dolores Mayhall. He noted Dolores' involvement in the community. He indicated that the Main Street Park existed because of the generosity and hard work from other families and civic groups. He noted that the Elks Lodge donated all the playground equipment. The Traphagen family donated the land and the Vasquez family took care of the maintenance. He indicated that the Dominguez family along with others spearheaded the revitalization. He noted that it was a true community effort. He suggested the park be renamed the Community Park on Main and a monument recognizing all individuals and groups that have played a part in the park. He commented to Councilmember Buckley on a personal note regarding comments made to his wife JJ Swanson - O'Neal. Agenda Item No. J Page o4_Q„, Page Forty — City Council Minutes — October 11, 2005 CITY MANAGER COMMENTS City Manager Brady commented on the following: 1) Announced that the Country Music Channel would be presenting unsung stories. He indicated that it was a mini concert and filming focused on Lake Elsinore and Ink Sanity for their contributions to the victims of Hurricane Katrina. He indicated that a song specially written for the City would be revealed. He noted that it would be held at the Diamond Stadium, Thursday, October 13th at 4:00 p.m. 2) Announced the following upcoming events: Oct 13" — Riverside and Orange County connection meeting Oct 22nd Lake Elsinore Rotary Club Chili Cook Off CITY ATTORNEY COMMENTS 1) Wished Sergeant Cordova a happy birthday. 2) Congratulated Mr. Ray on his appointment. COMMITTEE REPORTS None. CITY TREASURER COMMENTS No comments. CITY COUNCIL COMMENTS Councilmember Kelley commented on the following: 1) Wished Sergeant Cordova a happy birthday. Agenda Item No. —Lb lose Paggobf A2 �.._ Page Forty -one — City Council Minutes — October 11, 2005 2) Congratulated Mr. Ray on his appointment. Mayor Pro Tem Schiffner commented on the following: 1) Wished Sergeant Cordova a happy birthday. 2) Congratulated Mr. Ray on his appointment. Councilmember Hickman commented on the following: 1) He commented that October 15th was the last day for senior citizens to apply for rental tax rebate. 2) He commended the City staff members that had signed up for the Susan G. Komen Race for the Cure. 3) He commented that his youngest son was on his way to Iraq with the 101St Airborne. He asked everyone to keep his son in their prayers. Councilmember Buckley commented on the following: 1) He noted a naming policy was part of the new policy updates. 2) He indicated that in Western Riverside County there had been 80 cases of human west Nile virus reported. He indicated that there was zero in Lake Elsinore and there had never been case in Lake Elsinore; and zero in Lake Elsinore's Mosquito District. Mayor Magee commented on the following: 1) He commented that the Council and staff were happy to have Mr. Seumalo back with the City for his third and hopefully final stint with the City. ADJOURNMENT le_� The Regular City Council Meeting was adjourned at 8:05 p.m. Agenda Item No. ✓ PagJ41 of -4-2 Page Forty -two — City Council Minutes — October 11, 2005 ATTEST: FREDERICK RAY, CITY CLERK CITY OF LAKE ELSINORE ROBERT E. MAGEE, MAYOR CITY OF LAKE ELSINORE Agenda Item No. 16 Pag�42 1-12— —12 MINUTES JOINT CITY COUNCIL/REDEVELOPMENT AGENCY STUDY SESSION CITY OF LAKE ELSINORE 183 NORTH MAIN STREET LAKE ELSINORE, CALIFORNIA TUESDAY, OCTOBER 25, 2005 CALL TO ORDER Mayor Magee called the Joint Study Session to order at 4:01 p.m. ROLL CALL PRESENT: COUNCILMEMBERS: HICKMAN, KELLEY SCHIFFNER, MAGEE ABSENT: COUNCILMEMBERS: BUCKLEY (Councilmember Buckley arrived at 4:05 p.m.) Also present were: City Manager Brady, City Attorney Mann, Administrative Services Director Pressey, Information /Communications Manager Dennis, Lake & Aquatic Resources Director Kilroy, Community Services Director Sapp, Planning Manager Preisendanz, City Engineer Seumalo, Public Works Manager Payne, Recreation /Tourism Manager Fazzio, City Treasurer Weber and Office Specialist I Soto. DISCUSSION ITEMS Mayor Magee gave an overview of the presentations; and confirmed that the awardees would be present at the 7:00 p.m. meeting. Agenda Item No. —I C Page / Of PAGE TWO STUDY SESSION MINUTES — OCTOBER 25, 2005 PUBLIC COMMENTS Tim Fleming, resident, commented on a claim against the City filed by Terrence Thielen and noted that he was available to assist staff if necessary. CONSENT CALENDAR 1. Minutes. No comments. 2. Warrant List — October 17, 2005. Councilmember Hickman requested clarification of various checks issued on the warrant list. Staff clarified the items. City Treasurer Weber requested clarification on check no. 83574. Staff clarified the item. 3. Renaming City Park. No comments. 4. Request for waiver of fees. Councilmember Hickman inquired on the location of the church. Recreation/Tourism Manager Fazzio indicated that the church held their services at Lakeside High School. Mayor Magee inquired if the event had already taken place. Mrs. Fazzio confirmed. Agenda Item No. —I C Page__! 7__017 T PAGE THREE STUDY SESSION MINUTES — OCTOBER 259 2005 5. Authorization to implement outreach program for the Annexation related to Tentative Tract Map No. 32537. City Treasurer Weber inquired if the City would lose the VLF tax in regard to the annexation related to Tentative Tract Map No. 32537. Administrative Services Director Pressey confirmed that the City would not get the full tax benefit of any homes that fell within the district. 6. Lake Elsinore DPSS Office /Transitional Housing Project. Kathy Welborn, California Department of Public Social Services, gave an in- depth presentation on the Lake Elsinore DPSS Office and Transitional Housing Project. David Terrell, California Department of Public Social Services Facilities Manager, gave an overview of the DPSS facility appearance as well as what it would include. Tim Fleming, Citizen Representative of the Housing Project Committee, stated that he was available to answer any questions Council might have in order to help bring the project to fruition. Mr. Fleming gave an overview of the Vista facility. Mayor Magee stated that upon meeting with Mrs. Welborn, Supervisor Buster and his Staff, he promised Supervisor Buster that he would bring the item forward to the Council as an information item so that the Council would be aware of what the County was planning. He further stated that Supervisor Buster agreed that the County and City would work together on the project. He reminded Council that the item would be brought back as a formal project in the form of a Design Review. Agenda Item No. 1 C Page 6 Of 9 PAGE FOUR STUDY SESSION MINUTES — OCTOBER 25, 2005 r■r+ Councilmember Hickman inquired if the transitional house would require a percentage of the individual's income. Mrs. Welborn indicated that would be something they would research. Mayor Pro Tem Schiffner inquired on the requested clarification on how the project construction and operation would be funded. Mrs. Welborn stated that the project had been approved for the HUD Supportive Housing Program Grant. She noted the grant covered supportive services and operations. Mr. Terrell stated that the cost for the transitional housing was an estimated $4 million. Mayor Pro Tern Shiffner inquired if it was anticipated that the City of Lake *"90 Elsinore would participate in funding. Wendy Kolk, Supervisor Buster's Office, noted that it was yet to be determined whether or not the City would contribute. Councilmember Kelley stated that she supported the project. She noted that she had a lot of questions regarding funding and what the expectations were from the County as to what the City's participation would be. She further inquired on the cost of the total project. Mr. Terrell stated that the transitional house was estimated at $4 million and an estimated $5 million for the office building. Councilmember Buckley noted the resolution from the Lake Elsinore Unified School District in support of the project, he inquired if they would be funding any part of the project. Agenda Item No. I C- Page _Of- 1` PAGE FIVE STUDY SESSION MINUTES — OCTOBER 259 2005 Mayor Magee stated that due to the proximity to the school district property, he urged Supervisor Buster and his staff to seek the approval of the school district. Councilmember Buckley inquired if there was an interest in the City's RDA property next door to the project. Mayor Magee stated that was the subject of negotiation and that their goal is incorporate that piece of property into their project. Councilmember Buckley inquired if RDA property would affect the City's or RDA's ability to use that piece of property if it was not incorporated. He further inquired if the project would decrease the value of the property. Mayor Magee stated that the RDA property was part of an on -going negotiation in closed session, and the party looking to build the project for the County was the one negotiating to purchase it. Councilmember Hickman inquired if whether or not the 2 -1/2 acres of the City's RDA property was needed to build the project. Mr. Terrell stated that the City's property would help. He noted that they were also trying to obtain property behind the City's property that was owned by the County. 7. Approval of Final Map No. 31901, an industrial subdivision by D & D Cattle Company II, LLC, located at the northwest corner of Minthorn Street and Chaney Street. No comments. Agenda Item No. _1 C Page 67 Of PAGE SIX STUDY SESSION MINUTES — OCTOBER 25, 2005 8. Approval of Final Map No. 28214 -3, a residential subdivision by Castle & Cooke Alberhill Ranch, LLC, located approximately one -half (1/2) mile northeast of the intersection of Mountain Street and Lake Street. No comments. 9. Completion of clean -up of former underground storage tanks at 161 South Main Street (corner of Main Street and Sulphur). Councilmember Buckley inquired why the City ended up paying for the item as opposed to the owner of the property. City Manager Brady indicated that he look into that item. 10. Consideration of canceling the December 27, 2005 City Council Meeting. No comments. 11. Construction contract award for Poe Street between Flint and Pottery Streets. Councilmember Hickman noted that he drove to the area; he stated that only a certain area needed to be resurfaced as opposed to the whole block. He inquired if the item covered the whole block. City Engineer Seumalo clarified that the item did not cover the whole block; he clarified the specific area to be resurfaced. 12. Consultant selection for traffic signal and intersection improvements at Ortega Highway (SR -74) and Grand Avenue. No comment. Agenda Item No. ' C Page Of q " PAGE SEVEN STUDY SESSION MINUTES — OCTOBER 259 2005 PUBLIC HEARINGS 21. Tentative Tract Map No. 30494. No comments. BUSINESS ITEMS 31. Reimbursement Agreement with Rancho California Water District with the cities of Lake Elsinore, Murrieta and Temecula for the acquisition of aerial photography and digital elevation data. Information/Communications Manager Dennis indicated that the item was a data acquisition project. The aerial imagery that the City was acquiring with the project was necessary to render the results that the City would get with the survey quality digital data. He stated that aerial photography was commonly attainable through third parties. He noted that the item before Council was a proposal to enter in to a joint -party agreement with the Rancho California Water District to acquire digital data for elevation purposes. Mayor Magee inquired where the data received from the project will reside and who would maintain the database. He further inquired how the City would gain access to it. Inform ation/Communications Manager Dennis indicated that the City would be given rights and ownership of the database. He noted that the City would be given access to the whole region that the project covered. He further noted that the database would be maintained onsite. City Treasurer Weber inquired if the County had been contacted in regard to help aid the project. He further inquired if neighboring cities would be asked to join in. Agenda Item No. ' C Page 7 Of—�— PAGE EIGHT STUDY SESSION MINUTES — OCTOBER 25, 2005 Information/Communications Manager Dennis stated that the decision was made by Rancho California Water District to be the lead on the project. He indicated that the City of Lake Elsinore was asked if they wanted to participate, in which case Rancho California Water District would extend the survey area. He indicated that Canyon Lake and some other areas were not going to be surveyed or flown. Information/Communications Manager Dennis stated that if the City were to do the project by itself, the service area could cost over $300,000. He indicated that he anticipated the cost of the project proposed with Rancho California Water District to be no more than $85,000. City Treasurer Weber inquired if the County was asked to help fund the project. He further inquired if there was any other money available to help pay for the proj ect. GIS Analyst Barrozo indicated that the Cities of Perris and Corona were asked to join in. She stated that the County of Riverside was not interested since they did not need that specific data. She did state that all of the surrounding agencies were asked if they wanted to join in. REDEVELOPMENT AGENCY CONSENT CALENDAR 1. Minutes No comments. 2. Warrant List — October 17, 2005. Boardmember Buckley requested clarification on check no. 5630. Staff clarified item. Agenda Item No. _1 C Page k- Of / .-- PAGE NINE STUDY SESSION MINUTES — OCTOBER 259 2005 BUSINESS ITEMS 3. Redevelopment and Housing Implementation Plan 2005 -2009. No comments. ADJOURNMENT THE JOINT CITY COUNCIL/REDEVELOPMENT AGENCY STUDY SESSION WAS ADJOURNED AT 4:50 P.M. ROBERT E. MAGEE, MAYOR CITY OF LAKE ELSINORE DARYL HICKMAN, CHAIRMAN REDEVELOPMENT AGENCY Respectfully submitted, MICHELLE SOTO, OFFICE SPECIALIST I ATTEST: FREDERICK RAY, CITY CLERK Agenda Item No. ' C Page ! Of �— MINUTES JOINT CITY COUNCIL/REDEVELOPMENT AGENCY STUDY SESSION CITY OF LAKE ELSINORE 183 NORTH MAIN STREET LAKE ELSINORE, CALIFORNIA TUESDAY, NOVEMBER 8, 2005 CALL TO ORDER Mayor Magee called the Joint Study Session to order at 4:02 p.m. ROLL CALL PRESENT: COUNCILMEMBERS: BUCKLEY, KELLEY SCHIFFNER, MAGEE ABSENT: COUNCILMEMBERS: HICKMAN (Councilmember Hickman arrived at 4:05 p.m.) Also present were: City Attorney Leibold, Administrative Services Director Pressey, Information /Communications Manager Dennis, Lake & Aquatic Resources Director Kilroy, Community Services Director Sapp, Community Development Director Preisendanz, Associate Planner Coury, City Engineer Seumalo, Public Works Manager Payne, City Treasurer Weber and City Clerk Ray. DISCUSSION ITEMS Mayor Magee gave an overview of the presentations; and confirmed that the awardees would be present at the 7:00 p.m. meeting. PUBLIC COMMENTS 1� No comments. Agenda Item No. t C1 Page i Of 9 PAGE TWO STUDY SESSION MINUTES — NOVEMBER 8, 2005 CONSENT CALENDAR 1. Warrant List — October 31, 2005. Councilmember Buckley requested clarification of various checks issued on the warrant list. Staff clarified the items. 2. Authorization to prepare CEQA compliance documents for Specific Plan 2005- 01, Zone Change 2005 -01, Conditional Use Permit 2005 -21, Residential Design Review 2005 -I2 and LEAP 2005 -11 for Village at Lakeshore (Classic Pacific). No comments. 3. Authorization to prepare CEQA compliance documents for Tentative Tract Map No. 25475, Tentative Tract Map No. 33725, Ramsgate Specific Plan Amendment No. 4 and General Plan Amendment No. 2005 -04. No comments. 4. Amended Community Facilities District report for CFD No. 2005 -2 (Alberhill Ranch). Councilmember Buckley inquired if park land acquisition was a new item to be paid for out of the CFD. Administrative Services Director Pressey stated that the park land acquisition was the land that the developer was going to convey to the City, but the City had agreed to purchase it with the CFD funds. Councilmember Buckley inquired when the City agreed to pay for the land. Community Services Director Sapp indicated that the City would acquire the land through park credits or through the CFD. Agenda Item No. Page__W Of _9__ 10^ PAGE THREE STUDY SESSION MINUTES — NOVEMBER 8, 2005 5. Approval of Final Map No. 31531, a residential subdivision by D.R. Horton Homes, located approximately three - fourths of a mile southeast of the intersection of Grape Street and Railroad Canyon Road. Councilmember Hickman inquired on the exact location of the project. City Engineer Seumalo indicated that the project was located adjacent to Grape Street between the church and Wal -Mart. Mayor Magee stated that he would be abstaining from the item. 6. Approval of Final Map No. 31532, a residential subdivision by D.R. Horton Homes, located approximately one mile southeast of the intersection of Grape Street and Railroad Canyon Road. 1� No comments. 7. Agreement between Caltrans and the City of Lake Elsinore for the cost of construction and maintenance of the signal at Rosetta Canyon, Trellis Lane and Ardenwood Way and State Route 74. Mayor Magee commented that Caltrans would be issuing a permit for 3 traffic signals. 8. Agreement between Caltrans and the City of Lake Elsinore for the cost of construction and maintenance of the signal at Riverside Drive and the High School entrance. Councilmember Kelley inquired if that was the City's first time doing an agreement of that nature with the school district. City Engineer Seumalo indicated that the agreement was not too different than the agreement for Centex Homes. He stated that he was unsure if an agreement of that nature had been done with the school district before. Agenda Item No. 18 Page Of 7 PAGE FOUR STUDY SESSION MINUTES — NOVEMBER 8, 2005 9. Poe Street Pavements rehabilitation Change Order No. 1 — Lindsay Street Repairs. Mayor Magee commended Public Works Manager Payne for taking advantage of the school being in recess and bringing the project forward so that it impacts the least amount of people as possible. 10. Selection of Audit Firm to perform agreed upon procedures related to certain bond transactions. Councilmember Kelley inquired if the costs would be higher than anticipated. Mayor Magee confirmed that the item would be brought back if it was more than $10,500. PUBLIC HEARINGS 21. Lake Elsinore Ford; Commercial Design Review No. 2005 -02, Conditional Use Permit No. 2005 -06, Variance No. 2005 -03 and Mitigated Negative Declaration No. 2005 -06. Mayor Magee noted that he had a request to continue the item until the December 13th City Council Meeting. 22. Tentative Tract Map No. 31593. Community Development Director Preisendanz indicated that the City proposed changes to the Condition of Approval due to the CFD not moving forward as expected. He noted changes to Condition No. 38 and Condition No. 40. Mayor Magee commented on Condition No. 9, he stated that the last sentence should state "no cost to the City ". He requested clarification on Condition No. 93. Agenda Item No. Page__,�,_Of --�— �` PAGE FIVE STUDY SESSION MINUTES — NOVEMBER 89 2005 Community Development Director Preisendanz indicated that Condition No. 93 related to the park site. He noted that the condition was prepared by City Attorney Mann to accommodate the easement and ingress /egress for the park road. Mayor Magee commented on Condition No. 106, and inquired if it was consistent with the City's Franchise Agreement with CR &R Disposal. Community Development Director Preisendanz indicated that the condition was not consistent and the applicant needed to use CR &R. Mayor Magee stated that the last sentence in Condition No. 106 needed to be dropped. Mayor Magee noted that comments from 3 different State agencies had been received. He further inquired if comments from any County agencies had been received. Community Development Director Preisendanz confirmed that the City had not received any comments from County agencies. Mayor Magee indicated that Mayor Pro Tem Schiffner found another modification. Mayor Magee suggested that Condition No. 106 be eliminated all together since Condition No. 107 related to the Franchise Agreement. Mayor Magee inquired on the comment from the Department of Toxics, and inquired if there was anything relative to toxins on the project site. Community Development Director Preisendanz confirmed that he was not aware of anything. 23. Extension of time for Tentative Parcel Map No. 30985. Councilmember Buckley commented that the last map that was extended was Target and inquired if they were still building. Agenda Item No. Page Of -�— PAGE SIX STUDY SESSION MINUTES — NOVEMBER 8, 2005 *.40 Community Development Director Preisendanz confirmed that they were still building. Community Development Director Preisendanz stated that the applicant had requested that Conditions of Approval Nos. 61, 62 and 64 be deleted. Councilmember Buckley recommended deleting conditions 61 and 64, and leaving in 62 with the addition of "if appropriate ". Mayor Magee recommended adding "if deemed appropriate by City Engineers ". 24. Formation of CFD 2004 -2 (Viscaya); call a special election; canvas election results; authorizing levy of special taxes. Administrative Services Director Pressey indicated that it was staff's recommendation that the City Council take no action on the item. He noted that the developer had come forward requesting a modification to the CFD which would require starting over with another Resolution of Intention. BUSINESS ITEMS 31. Resolution authorizing the issuance of bonds and approving bond documents for Community Facilities District No. 2005 -2 (Alberhill Ranch). Councilmember Buckley inquired if the item was connected to Consent Calendar Item No. 4. Administrative Services Director Pressey indicated that the Consent Calendar Item amended the CFD Report and Item No. 31 authorized the issuance of bonds related to that CFD. Councilmember Buckley inquired what would happen if Consent Calendar Item No. 4 was not approved. He inquired if Item No. 31 could be modified at the dais. Agenda Item No. Page & Of 9 PAGE SEVEN STUDY SESSION MINUTES — NOVEMBER 8, 2005 Administrative Services Director Pressey indicated that would be a question for the Bond Counsel. Danny Kim, Fulbright and Jaworski, indicated that if Item No. 4 on the Consent Calendar to amend the CFD Report was not approved, action on Item No. 31 could be taken. City Treasurer Weber inquired about the administration cost for the Bond Counsel. Administrative Services Director Pressey indicated that the cost of issuance was $360 thousand. REDEVELOPMENT AGENCY ,-- CONSENT CALENDAR 1. Warrant List — October 31, 2005. No comments. BUSINESS ITEMS 2. Exclusive Negotiation Agreement. Legal Counsel Leibold noted that Mr. Jacob would be present at the 7 p.m. meeting. Chairman Hickman indicated that Jacobs -CP Diamond Development could not borrow against the Stadium. Legal Counsel Leibold stated that they had no interest in the Stadium during the negotiation period. She noted that the provision would be something that would be included in the definitive agreement. Agenda Item No. i Page -2 Of--?-- PAGE EIGHT STUDY SESSION MINUTES — NOVEMBER 8, 2005 Boardmember Magee indicated that in the past it took a while to collect the fees. He suggested that the Legal Counsel enforce that the initial deposit be paid within 7 calendar days. Legal Counsel Leibold indicated that the initial period was 62 days. She noted that the initial and extended negotiation period have been tied together to a regular Agency Board meeting. She noted that there would be an opportunity to meet on January 10th under Real Property Negotiations. She noted that the Agency Board would meet March 14th if it were to go into extended negotiations. Boardmember Magee noted that he would like for the initial deposit to be received before the Agency started to incur costs. PUBLIC HEARING 3. Redevelopment and Housing Implementation Plan 2005 -2009. *"&* Chairman Hickman complimented Legal Counsel Leibold on the item. Legal Counsel Leibold stated that she received comments from the RDA Committee. City Treasurer Weber inquired if the HDL audit for tax increment had come back. Administrative Services Director Pressey stated that they were still working on the audit. He stated that he would follow up with them. City Treasurer Weber indicated that the audit was supposed to be done by October 2004 and was over a year overdue. Administrative Services Director Pressey indicated that he did not have a clear indication why that had not yet been completed. Agenda Item No. I d Page?' Of � PAGE NINE STUDY SESSION MINUTES — NOVEMBER 8, 2005 ADJOURNMENT THE JOINT CITY COUNCIL/REDEVELOPMENT AGENCY STUDY SESSION WAS ADJOURNED AT 5:05 P.M. ROBERT E. MAGEE, MAYOR CITY OF LAKE ELSINORE DARYL HICKMAN, CHAIRMAN REDEVELOPMENT AGENCY Respectfully submitted, MICHELLE SOTO, OFFICE SPECIALIST I ATTEST: FREDERICK RAY, CITY CLERK Agenda Item No. � d Page 9 Of-9— MINUTES JOINT CITY COUNCILIREDEVELOPMENT AGENCY STUDY SESSION CITY OF LAKE ELSINORE 183 NORTH MAIN STREET LAKE ELSINORE, CALIFORNIA TUESDAY, NOVEMBER 229 2005 CALL TO ORDER Mayor Magee called the Joint Study Session to order at 4:02 p.m. ROLL CALL PRESENT: COUNCILMEMBERS: HICKMAN, KELLEY SCHIFFNER, MAGEE ABSENT: COUNCILMEMBERS: BUCKLEY (Councilmember Buckley arrived at 4:05 p.m.) Also present were: City Manager Brady, City Attorney Leibold, Administrative Services Director Pressey, Information /Communications Manager Dennis, Lake & Aquatic Resources Director Kilroy, Community Services Director Sapp, Community Development Director Preisendanz, Senior Planner Harris, Associate Planner Resendiz, City Engineer Seumalo, Building and Safety Manager Chipman, City Treasurer Weber and Office Specialist I Soto. DISCUSSION ITEMS Mayor Magee gave an overview of the presentation; and confirmed that the awardee would be present at the 7:00 p.m. meeting. Agenda Item No. e" Page % Of2 PAGE TWO STUDY SESSION MINUTES — NOVEMBER 22, 2005 PUBLIC COMMENTS No comments. CONSENT CALENDAR 1. Warrant List — November 15, 2005. Councilmember Hickman requested clarification of various checks issued on the warrant list. Staff clarified the items. 2. Investment Report for August 2005. No comments. 3. Award of Bid — Tennis Court Resurfacing. `..s* Councilmember Kelley noted that the tennis court over at Creekside was horrible and she was happy to see the tennis court resurfacing before council. She inquired on the cost difference between the 2 bids. Community Services Director Sapp indicated that he did not have any specifics on why the cost differed between the two companies that bid on the project. City Manager Brady noted that both of the companies did onsite inspections. Councilmember Kelley inquired on the completion date for both the Machado and Creekside locations. Community Services Director Sapp indicated that he had hoped to have it done in the next 8 weeks. r.n Agenda Item No. 1 �P_ Page �?_Of 1,2 PAGE THREE STUDY SESSION MINUTES — NOVEMBER 229 2005 4. Award of Bid — Park Restroom Cleaning. Councilmember Hickman inquired on the cost difference for different restroom locations. Community Services Director Sapp stated that some restrooms were larger in size than others and cost more to clean and stock with material. 5. Allocation of funds for the City Wide Speed Study. Councilmember Hickman inquired why the fiscal impact dollar amount and agreement dollar amount differed. Mayor Magee stated that the difference in price had to do with administrative support time. City Engineer Seumalo confirmed. City Manager Brady indicated that that administrative support time had been budgeted in to the account and staff time was charged to that account. City Manager Brady noted that Traffic Offender Fees would be utilized rather than the Measure A funds for $22 thousand. Mayor Pro Tem Schiffner requested clarification on the total cost of the project. City Engineer Seumalo stated that the $22 thousand represented the budget for the project which included administration fees. PUBLIC HEARINGS 21. Tentative Parcel Map No. 34023. Councilmember Buckley inquired what kind of homes would be placed on the �.. proj ect. Agenda Item No. ' 2 Page _ Of 12 PAGE FOUR STUDY SESSION MINUTES — NOVEMBER 22, 2005 Community Development Director Preisendanz confirmed that the map was a subdivision at that point and that he was not aware of what kind of homes were to be placed on the project site. Councilmember Buckley inquired what kind of home was allowed on the project site. Community Development Director Preisendanz indicated that both stick and manufactured homes with the right architectural enhancements were allowed on the project site. Councilmember Hickman inquired if there was a way to put a freeze or moratorium on construction on Main Street until the General Plan was completed. City Manager Brady stated that one of the directions that the City Council gave at the last City Council meeting was to take into consideration the General Plan `No Update and what was occurring with the General Plan Update and when projects were coming in throughout the entire City. He stated that a moratorium was a possibility, however he wouldn't recommend it. Councilmember Hickman inquired if there were any projects coming to downtown. Community Development Director Preisendanz stated that there were not any projects coming to downtown on Main Street. He stated that any project in the historic district or along the lake would be routed to GPAC and Mooney, Jones and Stokes. BUSINESS ITEMS 31. Easement and Public Park Improvement Agreement with EVMWD. Councilmember Buckley inquired if there was a specific minimum dollar amount of what EVMWD would have to spend. Agenda Item No. Page___Y_Of 42 - ` PAGE FIVE STUDY SESSION MINUTES — NOVEMBER 229 2005 City Attorney Leibold stated that the requirement was to submit plans for approval by the City Council. She noted that there was not a specific minimum dollar amount to spend, however; it could be done. 32. Lincoln Street Park. Councilmember Kelley inquired on the timeline of the project. Community Services Director Sapp stated that once the City Council approved staff's recommendation it would take approximately 4 months to complete. Mayor Magee inquired if at least 2 other groups, other than Kobata Associates, had bid on the project and were interested in participating. Community Services Director Sapp stated that he had not been contacted by any other groups. He stated that he could bid out for future work. Mayor Magee stated that he received letters from 2 landscape architectural firms that were interested in competing with Kobata Associates for future work. 33. Infrastructure Reimbursement Agreement (Oak Grove Crossing Shopping Center). City Treasurer Weber inquired how much money would be generated from the project. Administrative Services Director Pressey stated that the total estimated sales tax would be in the $300/$400 thousand range. City Attorney Leibold noted that the employee figures they received from Target were 120 employees, plus an additional 30 -60 employees for other retail developments on the site. 34. Memorandum of Understanding with United Public Employees of California, LIUNA Local 777 for July 1, 2005 to June 30, 2007. Agenda Item No. ' C- Page s of PAGE SIX STUDY SESSION MINUTES — NOVEMBER 22, 2005 Mayor Magee stated that he thought the agreement for the CIP Index stated "up to 4.0." Administrative Services Director Pressey indicated that 4.4% was what was communicated to him from Union Representatives and Mr. Filarsky. Mayor Magee noted that he wanted to verify what direction the Council gave to Mr. Filarsky. City Attorney Leibold noted that she would call Mr. Filarsky to confirm. Administrative Services Director Pressey stated that he would confirm what the Council had agreed upon. 35. CFD Policy. Leonard Leichnitz, LUMOS Communities, stated that he supported the ,.,► elimination of the escalator. He requested that the new policy only apply to projects that have a tentative map deemed complete after the date of adopting the new policy. La Strada Partners Representative stated that they had an approved project in the Tuscany Hills area. They stated that they were currently in the process of submitting improvement plans and applying for a grading permit. He requested that their project be grandfathered in to the existing policy since they had been working with the City for quite some time. Chris Lightburne, La Strada Partners, stated that he and his company have been working with City staff to come up with a solution to the transportation issue. He stated that he would like Council's consideration in the adoption of the CFD Policy. Councilmember Hickman asked the developers if they were to lose money with the elimination of the escalator, if they would then pass the cost on to the homeowners. Agenda Item No. —I 2 Page p Of! .` PAGE SEVEN STUDY SESSION MINUTES —NOVEMBER 22, 2005 Mr. Lightburne stated that there was a possibility that the elimination of the escalator could increase the price of a home. He stated that their hope was not to do that. Mayor Pro Tem. Schiffner said that a cut off time needed to be established for the policy. City Treasurer Weber inquired how much profit the developers made off of a house. La Strada Partners Representative indicated that the profit was hard to come up with considering the factors of custom materials and fuel. He stated that he was not present to argue the CFD; he just wanted to request that his project be grandfathered in. Mr. Leichnitz stated that the builder he worked for had an internal policy that they needed a 20% return on capital. He stated that after overhead, which was between 9 -12 %, the company typically netted between 8 -11 % on their capital. Councilmember Kelley requested clarification on which of the 6 of the developers listed in the staff report had paid their deposits. Administrative Services Director confirmed the developers that had paid their deposits. Councilmember Hickman stated that he did not want to see the price of homes go up where the City was no longer competitive and development slowed down. Mayor Magee stated that he favored Mr. Leichnitz's idea where a builder that had a completed Tentative Tract Map application in to the City would be under the language contained in the recommendation which contained "may ". He stated that it would allow flexibility and put the requirement on the builder to make their case for allowing an escalator or not allowing an escalator. He stated that he was in support of completed applications as of 11/22/05 being Agenda Item No. Page— -7_Of %� PAGE EIGHT STUDY SESSION MINUTES — NOVEMBER 22, 2005 allowed to go under the existing policy and that anything going forward after that, would be under the "may" policy. Councilmember Buckley inquired on which of the 6 developers who had paid their deposits, had completed applications in to the City. Community Development Director Preisendanz stated that all 6 developers had incomplete applications. Councilmember Buckley inquired if a 1.8% cap was considered in place of the 2% escalator. Administrative Services Director Pressey indicated that a 1.8% cap was not analyzed. He stated that the 1.8% cap would not be as big of an impact as the 2% escalator. Councilmember Buckley inquired if the developer would be able to, finance some of the new fees if they were not able to get the 2 %. City Attorney Leibold requested further clarification. Councilmember Buckley inquired if everything except Development Agreement Fees could be financed. City Attorney Leibold indicated that Development Impact Fees could be included in a CFD if the funds were used for capital. Councilmember Hickman inquired on how many developers were anticipated in addition to the 6 that the City had applications for already. Community Development Director Preisendanz anticipated that no more than 10 were expected. Councilmember Kelley stated that she was in favor of completed applications in front of Council having the opportunity to go with the 2% escalator, and Agenda Item No. e Page O Of 1°2 � . PAGE NINE STUDY SESSION MINUTES — NOVEMBER 229 2005 anything after would go under the new policy. She stated that Council should allow the word "may" in the new policy. Mayor Magee stated that the developer could come up with the plan and then Council would have the ability to decide whether it was good or bad and could be supported by Council. 36. Industrial Design Review No. 2004 -09 for the project known as "Self Storage Facility ". Councilmember Buckley said he had a problem with the documents not being legible. Community Development Director Preisendanz stated that the package should have only included the industrial building. Councilmember Buckley stated that he did not feel he was in a position to make a decision on the design review since he did not have a feeling of what the entire building would look like. Mayor Pro Tem Schiffner stated that he was not too concerned with the look of the building since it was located in an industrial area. City Treasurer Weber inquired if the project would generate any tax money. City Attorney Leibold noted that the City received property tax from the project. City Manager Brady noted that the project was not a retail use and would not generate the sales tax of a major retail chain. Councilmember Hickman requested clarification of how the 2nd story of garage doors would be utilized. /I-- Senior Planner Harris noted that the facility would be utilizing freight elevators. Agenda Item No. /� Page_ / Of 62 PAGE TEN STUDY SESSION MINUTES — NOVEMBER 22, 2005 Mayor Magee inquired when the application for the project was filed. Community Development Director Preisendanz stated that the project had been in house for quite a while and he had been working with the applicant continuously to try and draw plans that were near the City standards. He noted that every recommendation that he had provided had been completed by the applicant. Mayor Magee inquired if the project was a permitted use under the current general plan and zoning designation. Community Development Director Preisendanz confirmed that the project was a permitted use under the current general plan and zoning designation. Councilmember Kelley inquired if the existing building located in the middle of the plans would be occupied by the applicant. . Senior Planner Harris indicated that there was an existing house on the project, and the applicant had planned to convert that house into an office and also a manager's living quarters in the rear. Councilmember Kelley suggested holding off on the project until the applicant could come up with plans that were up to City standard. Mayor Magee requested confirmation from Community Development Director Preisendanz if the project was a complete application; and that the use was currently permitted under the general plan. Community Development Director Preisendanz confirmed. 37. Industrial Design Review No. 2005 -03, Vanderhoek Industrial Buildings No comments. Agenda Item No % e' Page /CP Of ! °'� ,"so ..r► �^ PAGE ELEVEN STUDY SESSION MINUTES — NOVEMBER 22, 2005 REDEVELOPMENT AGENCY CONSENT CALENDAR 1. Warrant List — November 15, 2005. No comments. 2. Investment Report for August 2005. No comments. 3. Approval of New Ownership of Lakeside Apartments. Chairman Hickman inquired if there was any reason why the item should be �— held up. Legal Counsel Leibold confirmed that there was not any reason why the project should be held up. ADJOURNMENT THE JOINT CITY COUNCIL/REDEVELOPMENT AGENCY STUDY SESSION WAS ADJOURNED AT 5:15 P.M. ROBERT E. MAGEE, MAYOR CITY OF LAKE ELSINORE DARYL HICKMAN, CHAIRMAN REDEVELOPMENT AGENCY Agenda Item No. '�- Page // Of 1O'2 PAGE TWELVE STUDY SESSION MINUTES — NOVEMBER 22, 2005 Respectfully submitted, MICHELLE SOTO, OFFICE SPECIALIST I ATTEST: FREDERICK RAY, CITY CLERK •..r � Agenda Item No. 1 e' Page /,-I- of 1,2 I'—. MINUTES REGULAR CITY COUNCIL MEETING CITY OF LAKE ELSINORE 183 NORTH MAIN STREET LAKE ELSINORE, CALIFORNIA TUESDAY, NOVEMBER 22, 2005 CALL TO ORDER The Regular City Council Meeting was called to order by Mayor Magee at 5:00 p.m. ROLL CALL PRESENT: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: BUCKLEY, HICKMAN, KELLEY, SCHIFFNER, MAGEE NONE Also present were: City Manager Brady, City Attorney Leibold, Administrative Services Director Pressey, Community Development Director Preisendanz, Community Services Director Sapp, Lake & Aquatic Resources Director Kilroy, Information /Communications Manager Dennis, City Engineer Seumalo, Recreation/Tourism Manager Fazzio, Police Chief Fetherolf, City Treasurer Weber and Office Specialist I Soto. CLOSED SESSION THE REGULAR CITY COUNCIL MEETING WAS RECESSED INTO CLOSED SESSION AT 5:00 P.M. RECONVENE IN PUBLIC SESSION (7:00 P.M.) PLEDGE OF ALLEGIANCE Agenda Item No. I If Page of Page Two — City Council Minutes — November 22, 2005 The Pledge of Allegiance was led by Pete Dawson. INVOCATION — MOMENT OF SILENT PRAYER Mayor Magee led the meeting in a moment of silent prayer. ROLL CALL PRESENT: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: BUCKLEY, HICKMAN, KELLEY, SCHIFFNER, MAGEE NONE Also present were: City Attorney Leibold, Administrative Services Director Pressey, Community Development Director Preisendanz, Community Services Director Sapp, Lake & Aquatic Resources Director Kilroy, Information /Communications Manager Dennis, City Engineer Seumalo, Recreation/Tourism Manager Fazzio, Police Chief Fetherolf, City Treasurer Weber and City Clerk Ray. CLOSED SESSION a. CONFERENCE WITH REAL PROPERTY NEGOTIATOR (Gov't Code § 54956.8) Property: A.P.N. 377 - 040 -023, 024, and 025 Negotiating parties: City of Lake Elsinore and Mjp 76 Inc Under negotiation:, price and terms of payment b. CONFERENCE WITH REAL PROPERTY NEGOTIATOR Gov't Code § 54956.8) Property: A.P.N. 363 - 200 -001 Negotiating parties: City of Lake Elsinore and Pardee Homes Under negotiation: price and terms of payment Agenda Item No. 1 J Page � of N400 Page Three — City Council Minutes — November 22, 2005 C. CONFERENCE WITH LEGAL COUNSEL — ANTICIPATED LITIGATION Significant exposure to litigation pursuant to subdivision (b) of Gov't Code § 54956.9: (1 case) CLOSED SESSION REPORT City Attorney Leibold announced the Closed Session discussion items as listed above. She noted that there was no discussion on item b and c; and there was no reportable action on item a. PRESENTATION /CEREMONIALS A. Proclamation - American Education Week. Mayor Magee called Assistant Superintendent of Educational Services for the L.E.U.S.D. Claudette Beaty forward for the presentation. Mayor Magee read and presented the proclamation. Mrs. Beaty thanked the City Council. PUBLIC COMMENTS — NON - AGENDIZED ITEMS —1 MINUTE Ruth Atkins, 15237 Lake Trail Circle, commented the Holiday Home Tour would be held December 10th. She noted some of the homes that would be displayed on the tour. Ruth Atkins announced that Lake Elsinore would have its certified Farmers Market beginning January 22, 2006. Valerie Sund, Lake Elsinore, announced the opening of Diamond Cinemas. She noted the location and hours of operation. She also noted the discounts for seniors, students and military personnel. Pete Dawson, 18010 Grand Avenue, inquired if there would be a Christmas Boat Parade this year. David Moon, 31605 Ridgecrest Drive, commended the Council on the development projects currently taking place in the City. He indicated that he was one of the few residents that were properly noticed about the Planning Commission Agenda Item No. Page Z) of Page Four — City Council Minutes — November. 22, 2005 Meeting. He indicated that the sign posted on the site had the wrong date. He commented that he and other residents created a petition and informed other residents in the area of the proposed project. He noted the concerns of the residents regarding traffic and parking. Bob Spieger, 21066 Kimberly Court, commented on the proposed Holiday Inn Express project. He noted that he has lived in Lake Elsinore for over 20 years. He indicated that the area was originally a business area. Jennifer Te, 31529 Stoney Creek Drive, commented on the proposed Holiday Inn Express project. She noted that her home was located across the street from the proposed project. She commented on the traffic and automobile alarms. She suggested that Council considered the possible decrease in the resident's property value. Jason Leinen, 31520 Sagecrest Drive, commented on the proposed Holiday Inn Express project. He indicated that he was also against the proposed project and suggested that other businesses be considered for the location. Rick Moore, 31572 Canyon View Drive, commented on the proposed Holiday Inn Express project. He indicated that he was also against the proposed project. He commented that it interfered with the resident's quality of life. He suggested that other businesses be considered for the location. Renie Skaaden, 31504 Stoney Creek Drive, commented on the proposed Holiday Inn Express project. She indicated that she was also against the proposed project. She commented that she had been burglarized four times within a one year time span. She commented on the traffic congestion that currently existed in that area. She suggested the project be moved to another location. She indicated that she was not informed of the project. She commented on the SOS storage signage and questioned the signage of the Holiday Inn Express. CONSENT CALENDAR ITEMS The following item was pulled from the Consent Calendar for further discussion and consideration: Agenda Item No. No. i T Pagel ! of �-,- Page Five — City Council Minutes — November 22, 2005 Item No. 5. MOVED BY BUCKLEY, SECONDED BY HICKMAN AND CARRIED BY UNANIMOUS VOTE TO APPROVE THE BALANCE OF THE CONSENT CALENDAR AS PRESENTED. 1. Ratified Warrant List for November 15, 2005. 2. Received and filed Investment Report for August 2005. 3. Awarded the bid to Trueline Surfacing at a cost of $21,900 and allocated the necessary funding from the General Fund Unallocated Revenue. 4. Awarded the bid to A &A Janitorial for a cost of $4,800 per month and direct staff to execute the agreement. ITEM PULLED FROM THE CONSENT CALENDAR 5. Allocation of funds for the City Wide Speed Study. Mayor Magee introduced the item and deferred to City Engineer Seumalo. Mr. Seumalo gave in -depth overview of the item. He indicated that the study needed to be conducted every 5 to 7 years. He noted staff's recommendation. MOVED BY SCHIFFNER, SECONDED BY KELLEY TO DIRECT STAFF TO EXECUTE AND FUND THIS STUDY BY MEANS OF THE MEASURE "A" ACCOUNT IN THE AMOUNT OF $22,000 AND DIRECT THE CITY MANAGER TO EXECUTE THE AGREEMENT WITH AL GOVER AND ASSOCIATES IN THE AMOUNT OF $18,920. Mayor Magee noted that there was a request to speak on the item. Chris Hyland, Lake Elsinore, commented that she was excited to see the item on the agenda. She expressed her hopes to see funds in the next budget for more motorcycle officers. She indicated that they did a magnificent job. Agenda Item No._V_1� Page �_of 95— Page Six — City Council Minutes — November 22, 2005 THE FOREGOING MOTION CARRIED BY UNANIMOUS VOTE. PUBLIC HEARINGS 21. Tentative Parcel Map No. 34023. Mayor Magee introduced the item and opened the public hearing at 7:23 p.m. Mayor Magee deferred to Community Development Director Preisendanz. Mr. Preisendanz gave an in -depth overview of the item. He indicated that the project went before the Planning Commission on October 18, 2005. He further indicated that the Planning Commission was recommending approval to the City Council. Mayor Magee closed the public hearing at 7:26 p.m. MOVED BY BUCKLEY, SECONDED BY KELLEY AND CARRIED BY ,"NO" UNANIMOUS VOTE TO ADOPT RESOLUTION NO. 2005-1649 APPROVING TENTATIVE PARCEL MAP NO. 34023. GENERAL. The applicant shall defend (with counsel acceptable to the City), indemnify, and hold harmless the City, its Officials, Officers, Employees, Agents, and its Consultants from any claim, action, or proceeding against the City, its Officials, Officers, Employees, or Agents to attach, set aside, void, or annul an approval of the City, its advisory agencies, appeal boards, or legislative body concerning implementation and construction of Tentative Parcel Map No. 34023, which action is bought within the time period provided for in California Government Code Sections 65009 and /or 66499.37, and Public Resources Code Section 21167. The City will promptly notify the applicant of any such claim, action, or proceeding against the City and will cooperate fully with the defense. TENTATIVE PARCEL MAP NO. 34023 2. The Tentative Parcel Map will expire two (2) years from date of approval unless within that period of time an appropriate instrument has been filed and recorded with the County Recorder, or an extension of time is granted by the City of Lake Elsinore City Council in accordance with the Subdivision Map Act and the LEMC. Agenda Item No. Page of 35- Page Seven — City Council Minutes — November 22, 2005 3. The Tentative Parcel Map shall comply with the State of California Subdivision Map Act and shall comply with all applicable requirements of the Lake Elsinore Municipal Code, Title 16 unless modified by approved Conditions of Approval. 4. Prior to final certificate of occupancy of the Tentative Parcel Map, the improvements specified herein and approved by the Planning Commission and the City Council shall be installed, or agreements for said improvements, shall be submitted to the City for approval by the City Engineer, and all other stated conditions shall be complied with. All uncompleted improvements must be bonded for as part of the agreements. 5. All lots shall comply with minimum standards contained in the LEMC. 6. A precise survey with closures for boundaries and all lots shall be provided per the LEMC. 7. The applicant shall comply with all conditions of the Riverside County Fire Department. 8. The applicant shall meet all requirements of Elsinore Valley Municipal Water District (EVMWD). 9. All future structural development associated with this map requires separate Design Review approval. 10. Prior to issuance of any grading permit and /or building permit, the applicant shall sign and complete an "Acknowledgment of Conditions" and shall return the executed original to the Community Development Department. 11. The applicant shall comply with the following City programs: the City Source Reduction and Recycling Element and Household Hazardous Waste Element, the County Solid Waste Management Plan and Integrated Waste Management Plan. 12. Prior to issuance of building permit, the applicant shall submit a letter of verification (will -serve letter) to the City Engineer, for all required utility services. 13. The applicant shall pay applicable fees and obtain proper clearance from the Lake Elsinore Unified School District (LEUSD) prior to issuance of building permits. 14. Pay all applicable fees including park fees. 15. The applicant shall meet all requirements of the providing electric utility company. 16. The applicant shall meet all requirements of the providing gas utility company. 17. The applicant shall meet all requirements of the providing telephone utility company. Agenda Item No.� Page of 35- Page Eight — City Council Minutes — November 22, 2005 18. A bond is required guaranteeing the removal of all trailers used during construction. 19. All signage shall be subject to Planning Division review and approval prior to installation. 20. The City's Noise Ordinance shall be met during all site preparation activity. Construction shall not commence before 7:00 AM and cease at 5:00 PM, Monday through Friday. Construction activity shall not take place on Saturday, Sunday, or any Legal Holidays. ENGINEERING 21. A grading plan signed and stamped by a Calif. Registered Civil Engineer shall be required if the grading exceeds 50 cubic yards or the existing flow pattern is substantially modified as determined by the City Engineer. If the grading is less than 50 cubic yards and a grading plan is not required, a grading permit shall still be obtained so that a cursory drainage and flow pattern inspection can be conducted before grading begins. 22. Prior to commencement of grading operations, applicant to provide to the City with a map of all proposed haul routes to be used for movement of export material. Such routes shall be subject to the review and approval of the City Engineer. 23. All grading shall be done under the supervision of a geotechnical engineer and he shall certify all slopes steeper than 2 to 1 for stability and proper erosion control. 24. An Encroachment Permit shall be obtained prior to any work on City right -of -way. 25. Arrangements for relocation of utility company facilities (power poles, vaults, etc.) out of the roadway or alley shall be the responsibility of the property owner or his agent. 26. Underground water rights shall be dedicated to the City pursuant to the provisions of Section 16.52.030 (LEMC), and consistent with the City's agreement with the Elsinore Valley Municipal Water District. 27. Applicant shall pay all applicable development impact /mitigation fees, including but not all inclusive: TUMF, MSHCP, TIF and area drainage fees. 28. 10 year storm runoff shall be contained within the curb and the 100 year storm runoff shall be contained within the street right -of -way. When either of these criteria are exceeded, drainage facilities shall be provided. 29. All compaction reports, grade certifications, monument certifications (with tie notes delineated on 8'/2" x 11" Mylar) shall be submitted to the Engineering Division before final inspection of public works improvements will be scheduled and approved. Agenda Item No. Page r of 35— Page Nine — City Council Minutes — November 22, 2005 30. All waste material, debris, vegetation and other rubbish generated during cleaning, demolition, clear and grubbing or other phases of the construction shall be disposed of at appropriate recycling centers. The applicant should contract with CR &R Inc. for recycling and storage container services, but the applicant may use the services of another recycling vendor. Another recycling vendor, other than CR &R Inc., cannot charge the applicant for bin rental or solid waste disposal. If the applicant is not using CR &R Inc. for recycling services and the recycling material is either sold or donated to another vendor, the applicant shall supply proof of debris disposal at a recycling center, including verification of tonnage by certified weigh master tickets. 31. In accordance with the City's Franchise Agreement for waste disposal & recycling, the applicant shall be required to contract with CR &R Inc. for removal and disposal of all waste material, debris, vegetation and other rubbish generated during cleaning, demolition, clear and grubbing or all other phases of construction. 32. On -site drainage shall be conveyed to a public facility, accepted by adjacent property owners by a letter of drainage acceptance, or conveyed to a drainage easement. 33. All natural drainage traversing the site shall be conveyed through the site, or shall be i^ collected and conveyed by a method approved by the City Engineer. 34. Roof drains shall not be allowed to outlet directly through coring in the street curb. 35. Roofs should drain to a landscaped area. 36. Applicant shall comply with all NPDES requirements in effect; including the submittal of an Water Quality Management Plan (WQMP) as required per the Santa Ana Regional Water Quality Control Board. 37. City of Lake Elsinore has adopted ordinances for storm water management and discharge control. In accordance with state and federal law, these local storm water ordinances rp ohibit the discharge of waste into storm drain system or local surface waters. This includes non -storm water discharges containing oil, grease, detergents, trash, or other waste remains. Brochures of "Storm water Pollution, What You Should Know" describing preventing measures are available at City Hall. PLEASE NOTE: The discharge of pollutants into street, gutters, storm drain system, or waterways - without Regional Water Quality Control Board permit or waver — is strictly prohibited by local ordinances and state and federal law. PRIOR TO APPROVAL OF FINAL MAP 38. Construct street and sidewalk improvements along the project frontage on Mohr Street such that the centerline to curb is 18'or as shown on the map. Agenda Item No._a Page / te of 35- Page Ten — City Council Minutes — November 22, 2005 •.r 39. Install a public street light at the northwest corner of Heald Avenue and Mohr Street. 40. Applicant shall enter into an agreement with the City for the construction of public works improvements and shall post the appropriate bonds prior to final map approval. 41. Applicant shall obtain all necessary off -site easements for off -site grading from the adjacent property owners prior to final map approval. 42. All Public Works requirements shall be complied with as a condition of development as specified in the Lake Elsinore Municipal Code (LEMC) prior to final map approval. 43. Make an offer of dedication for all public streets and easements required by these conditions or shown on the Tentative Map. All land so offered shall be granted to the City free and clear of all liens and encumbrances and without cost to the city. 44. A Calif. Registered Civil Engineer shall prepare street improvement plans and specifications. Improvements shall be designed and constructed to Riverside County Road Department Standards, latest edition, and City Codes (LEMC 12.04 and 16.34). 45. All property taxes shall be paid prior to recordation of the final map. PRIOR TO ISSUANCE OF A GRADING PERMIT 46. If the grading is less than 50 cubic yards and a grading plan is not required, a site plan that shows proposed project improvements and drainage patterns shall be submitted so that a cursory drainage and flow pattern inspection can be conducted before grading begins. 47. Submit grading plans with appropriate security, Hydrology and Hydraulic Reports prepared by a Registered Civil Engineer for approval by the City Engineer. Developer shall mitigate any flooding and /or erosion downstream caused by development of the site and /or diversion of drainage. 48. Provide soils, geology and seismic report. Provide final soils report showing compliance with recommendations. 49. The applicant shall obtain all necessary off -site easements for off -site grading and /or drainage acceptance from the adjacent property owners prior to grading permit issuance. 50. Applicant to provide erosion control measures as part of their grading plan. The applicant shall contribute to protection of storm water quality and meet the goals of the BMP in Supplement "A" in the. Riverside County NPDES Drainage Area Management Plan. Agenda Item No. I J ' Page /o of 10-` Page Eleven — City Council Minutes — November 22, 2005 51. Applicant shall provide the city with proof of his having filed a Notice of Intent with the Regional Water Quality Control Board for the National Pollutant Discharge Elimination System (NPDES) program with a storm water pollution prevention plan prior to issuance of grading permits. 52. Applicant shall obtain approval from Santa Ana Regional Water Quality Control Board for their storm water pollution prevention plan including approval of erosion control for the grading plan prior to issuance of grading permits. The applicant shall provide a SWPPP for post construction, which describes BMP's that will be implemented for the development and including maintenance responsibilities. PRIOR TO ISSUANCE OF BUILDING PERMIT 53. All Public Works requirements shall be complied with as a condition of development as specified in the Lake Elsinore Municipal Code (LEMC) prior to building permit. 54. Submit a "Will Serve" letter to the City Engineering Division from the applicable water agency stating that water and sewer arrangements have been made for this project and specify the technical data for the water service at the location, such as water pressure and volume etc. Submit this letter prior to applying for a building permit. 55. Pay all Capital Improvement Impact /Mitigation Fees and Plan Check fees (LEMC 16.34). PRIOR TO OCCUPANCY 56. All compaction reports, grade certifications, monument certifications (with tie notes delineated on 8 1/2" x 11" Mylar) shall be submitted to the Engineering Division. 57. All public improvements shall be completed in accordance with the approved plans to the satisfaction of the City Engineer. 58. Water and sewer improvements shall be completed in accordance with Water District requirements. 59. In accordance with the City's Franchise Agreement for waste disposal and recycling, the applicant shall be required to contact with CR &R Inc., for removal and disposal of all waste material, debris, vegetation and other rubbish generated during cleaning, demolition, clear and grubbing or all other phases of construction. BUSINESS ITEMS 1--- 31. Easement and Public Park Improvement Agreement with EVMWD. Agenda Item No.—Is Page // of Page Twelve — City Council Minutes — November 22, 2005 0 Mayor Magee introduced the item and deferred to City Manager Brady. Mr. Brady gave an overview of the item. He indicated that EVMWD wanted to locate a well on the site located at Terra Cotta Road and Lincoln Street. He indicated that the agreement would provide an easement onto the property or the location of a well and facilities for the well site. He indicated that EVMWD would provide landscaping in which the City would maintain. Councilmember Buckley thanked the sub - committee for their efforts on this project. MOVED BY BUCKLEY, SECONDED BY KELLEY AND CARRIED BY UNANIMOUS VOTE TO APPROVE THE AGREEMENT 32. Lincoln Street Park. Mayor Magee introduced the item and deferred to Community Services Director Sapp. Mr. Sapp gave an overview of the item. He noted the location of the project. He indicated that there were some changes made to the conceptual park plan. He continued to describe the amenities that would be in the park. He noted that the basketball court would not be lit at night. Councilmember Kelley indicated that she was delighted to see the item before Council. MOVED BY KELLEY, SECONDED BY HICKMAN AND CARRIED BY UNANIMOUS VOTE TO APPROVE THE CONCEPTUAL PARK PLAN AS PRESENTED AND AUTHORIZE STAFF TO MOVE FORWARD WITH CONSTRUCTION FOR THIS PROJECT. 33. Infrastructure Reimbursement Agreement (Oak Grove Crossing Shopping Center). Mayor Magee introduced the item and deferred to City Manager Brady. i `Wo Agenda Item No. ` Pagel1;11of C� 1 Page Thirteen — City Council Minutes — November 22, 2005 Mr. Brady gave an overview of the item. He indicated that when the project was approved on March 22, 2005, the applicant had requested if the City would be willing to consider assistance for reimbursement of relocating the major power lines along Collier. He indicated that Council did indicate they would be willing to provide a reimbursement agreement up to $260,000. City Attorney Leibold added that based on projections, the $260,000 reimbursement would be satisfied within a 3 -year period, but the agreement did allow up to 5 years of TIF reimbursement. Councilmember Hickman inquired about the number of employees the project was going to generate. Glen Daigle, Oak Grove Equities, commented that Target information indicated there would be 120 to 150 employees and the remainder of the center would employee another 80 to 100 employees. He also indicated that �^ a typical Target store would sale approximately $50 million in merchandise per year; which would generate $500,000 back to the City. MOVED BY BUCKLEY, SECONDED BY HICKMAN AND CARRIED BY UNANIMOUS VOTE TO ADOPT RESOLUTION NO 2005 -1659 APPROVING AND AUTHORIZING THE EXECUTION OF THE INFRASTRUCTURE REIMBURSEMENT AGREEMENT. 34. Memorandum of Understanding with United Public Employees of California, LIUNA Local 777 for July 1, 2005 to June 30, 2007. Mayor Magee introduced the item and deferred to Administrative Services Director Pressey. Mr. Pressey gave an overview of the item. He indicated that the employees had accepted the offer proposed by Council. He indicated that in response to the question at the 4:00 p.m. Agenda Review, the City's personnel attorney confirmed that the increase was as stated in the staff report. Councilmember Buckley indicated that the second year was up to 4.4 %. He noted that this was the first time that there was a cap on medical benefits, but Agenda Item No. I V Page /13 o Page Fourteen — City Council Minutes — November 22, 2005 still allowed for employees to have their family fully covered under a medical plan. MOVED BY BUCKLEY, SECONDED BY HICKMAN AND CARRIED BY UNANIMOUS VOTE TO APPROVE THE MEMORANDUM OF UNDERSTANDING WITH UNITED PUBLIC EMPLOYEES OF CALIFORNIA, LIUNA LOCAL 777 FOR JULY 19 2005 TO JUNE 30, 2007. 35. CFD Policy. Mayor Magee introduced the item and deferred to Administrative Services Director Pressey. Mr. Pressey gave an overview of the item. He commented on the CFD Policy Study Session. He indicated that there were items that were discussed and summarized to bring back to the Council. He noted that there was discussion to eliminate the 2% escalator. ,"so Leonard Leichnitz, LUMOS Communities, commented that the change in creating a different policy which eliminated escalation would make development more expensive in Lake Elsinore. He further commented that eliminating the escalator provision from the municipal finance policies would reduce approximately 25% of the proceeds that could be raised through this municipal fund. He indicated that LUMOS Communities supported the idea. He noted that it would be less confusion for their homebuyers. He recommended that the new escalation policy only apply to projects that did not have a deemed complete tentative map application. City Treasurer Weber explained the reason the finance team decided to remove the 2% escalator. He indicated that owning a home would be out of reach. Councilmember Buckley indicated that he agreed that the cost of a home had to be kept down. Agenda Item No. Page of -35 Page Fifteen — City Council Minutes — November 22, 2005 MOVED BY BUCKLEY TO APPROVE STAFF'S RECOMMENDATIONS WITH MODIFICATIONS TO READ "THE CITY MAY AFTER MAKING A SIGNIFICANT FINDING OF EXTRAORDINARY DEVELOPMENT CIRCUMSTANCE ALLOW AN ANNUAL ESCALATION FACTOR "; AND COUNCIL ADOPT THE 6 ITEMS ON PAGE 2 OF 15 OF THE STAFF REPORT; AND DIRECT THE FINANCE TEAM TO FORM NEW CFD'S WITH ANNUAL SPECIAL TAX LEVY THAT IS APPROXIMATELY EQUAL AND WHEN COUNCIL ALLOW AN EXTRAORDINARY DEVELOPMENT AND A POTENTIAL ESCALATOR THAT THE COUNCIL BE PRESENTED WITH BOTH THE ESCALATING NUMBER AND THE FLAT NUMBER. Motion failed for lack of a second. Mayor Pro Tem Schiffner requested that Administrative Services Director Pressey explain how this would affect the homebuyer. Mr. Pressey explained that the theory was that the homebuyer would pay less and more people could qualify for homes. Councilmember Hickman indicated that he could see the benefit for the developer and the homebuyer. MOVED BY BUCKLEY, SECONDED BY SCHIFFNER TO DIRECT THE FINANCE TEAM TO FORM NEW COMMUNITY FACILITY DISTRICTS WITH AN ANNUAL SPECIAL TAX LEVY THAT IS APROXIMATELY EQUAL EACH YEAR AND WITHOUT AN ESCALATOR AND MODIFICATION TO PART ONE OF THE RECOMMENDATION TO READ "CITY MAY MAKE A SPECIFIC FINDING OF EXTRAORDINARY DEVELOPMENT CIRCUMSTANCES TO ALLOW AN ANNUAL ESCALATION FACTOR AND TO GRANDFATHER IN APPLICATIONS THAT ARE DEEMED COMPLETE." Councilmember Kelley indicated that she could support the completed applications being grandfathered in and she also supported the motion made by Councilmember Buckley. Agenda Item No. 1 V Page `y of—?>— Page Sixteen — City Council Minutes — November 22, 2005 Mayor Magee commented that he also agreed that the existing applications deemed completed as of today be exempt. THE FOREGOING MOTION CARRIED BY UNANIMOUS VOTE. 36. Industrial Design Review No. 2004 -09 for the project known as "Self Storage Facility". Mayor Magee introduced the item and deferred to Community Development Director Preisendanz. Mr. Preisendanz gave in -depth overview of the item. He indicated that the project went before the Planning Commission on November 1, 2005. He further indicated that the Planning Commission was recommending approval to the City Council Councilmember Buckley indicated that he could not make a determination to %Noe whether or not it was an acceptable looking building. MOVED BY BUCKLEY, SECONDED BY HICKMAN TO DENY THE INDUSTRIAL DESIGN REVIEW OR TABLE OFF CALENDAR AND BRING BACK BEFORE COUNCIL WITH A PROPER SET OF PLANS. Mayor Pro Tem Schiffner made a substitute motion. MOVED BY SCHIFFNER, SECONDED BY KELLEY TO ADOPT RESOLUTION NO. 2005-166, APPROVING INDUSTRIAL DESIGN REVIEW NO. 2004-09. Wayne Holland, 7106 East Columbus Drive, Anaheim Hills, commented that had received a lot of input from City staff. He indicated that he had accepted every recommendation made by staff. Councilmember Buckley questioned what the building would look like. Mr. Holland provided Councilmember Buckley with a colored rendering of an existing building. Agenda Item No._ \� Pagel tp of 's Page Seventeen — City Council Minutes — November 22, 2005 Councilmember Kelley questioned the request to occupy or use the facility prior to the completion of the facility in phases. Mr. Preisendanz explained that the applicant had made the request at the Planning Commission Meeting and had also discussed the request with the Planner. Mr. Preisendanz indicated that the applicant had requested the project be phased into two phases; and request that he receive occupancy for the phase 1 portion as construction continued. Mr. Preisendanz indicated that condition #26 and #27 were added. Mayor Magee expressed his disappointment with the quality of the plans. He indicated that it was brought to Council's attention that this particular development would not generate a significant amount of tax revenue. THE FOREGOING SUBSITUTE MOTION CARRIED BY A VOTE OF 4 -1 WITH BUCKLEY CASTING THE DESCENDING VOTE. PLANNING GENERAL CONDITIONS 1. The applicant shall defend (with counsel acceptable to the City), indemnify, and hold harmless the City, its Official, Officers, Employees, and Agents from any claim, action, or proceeding against the City, its Official, Officers, Employees, or Agents to attach, set aside, void, or annul an approval of the City, its advisory agencies, appeal boards, or legislative body concerning the Industrial Business Park, which action is bought within the time period provided for in California Government Code Sections 65009 and /or 66499.37, and Public Resources Code Section 21167. The City will promptly notify the Applicant of any such claim, action, or proceeding against the City and will cooperate fully with the defense. If the City fails to promptly notify the Applicant of any such claim, or proceeding, the Applicant shall not, thereafter, be responsible to defend, indemnify, or hold harmless the City. 2. Approval for Conditional Use Permit No. 2004 -42 and Industrial Design Review No. I 2004 -09 will lapse and be void unless building permits are issued within one (1) year following the date of approval. An extension of time, up to one year per extension, may be granted by the Community Development Director prior to the expiration or the initial Design Review approval upon application by the developer one (1) month prior to expiration. Agenda Item No.0 Page/ 7 of 1�3S Page Eighteen — City Council Minutes — November 22, 2005 3. Any alteration or expansion of a project for which there has been a "Design Review" approval as well as all applications for modification or other change in the conditions of approval of a "Design Review" shall be reviewed according to the provisions of Chapter 17.82 in a similar manner as a new application. 4. No structure which has received a "Design Review" or "Minor Design Review" approval shall be occupied or used in any manner or receive a Certificate of Occupancy until the Director of Community Development has determined that all Conditions of Approval have been complied with. 5. Conditions of Approval shall be reproduced on page one of building plans submitted to the Building Division Plan Check. All Conditions of Approval shall be met prior to the issuance of a Certificate of Occupancy and release of utilities. 6. All site improvements approved with this request shall be constructed as indicated on the approved site plan and elevations. Revisions to approved site plans or building elevations shall be subject to the review of the Community Development Director. 7. Plan Check shall conform to the submitted plans as modified by Conditions of Approval, or the Planning Commission/City Council through subsequent action. 8. All roof mounted or ground support air conditioning units or other mechanical equipment *quo incidental to development shall be architecturally screened or shielded by landscaping so that they are not visible from neighboring property or public streets. Any material covering the roof equipment shall match the primary wall color. 9. Storage of explosives, acids, ammonia, or related materials which may pose a danger or an odor impact to surrounding uses shall be prohibited. 10. The proposed security alarm shall be silent or of low tone quality. 11. With the exception of recreational and rental vehicles, all outdoor storage shall be prohibited. 12. The maximum number of recreational vehicles stored outdoors on -site shall be four. The vehicles shall be parked in a designated parking space. 13. The maximum amount of rental vehicles stored on -site shall be three. 14. All exterior on -site lighting shall be shielded and directed on -site so as not to create glare onto neighboring property and streets or allow illumination above the horizontal plane of the fixture. All light fixtures shall match the architectural style of the building. Agenda Item No. 1 Page! 5of Page Nineteen — City Council Minutes — November 22, 2005 15. Applicant shall meet ADA (Americans with Disabilities Act) requirements. 16. Trash enclosures shall be constructed per City standards as approved by the Community Development Director or Designee prior to issuance of Certificate of Occupancy. 17. No exterior roof ladders shall be permitted. 18. All exterior downspouts shall be concealed within the building. 19. The Planning Division shall approve the location of any construction trailers utilized during construction. All construction trailers shall require a cash bond processed through the Planning Division. 20. Materials and colors depicted on the plans and materials board shall be used unless modified by the Community Development Director or designee. 21. On -site surface drainage shall not cross sidewalks. � 22. Parking stalls shall be double- striped with four -inch (4 ") lines two feet (2') apart. 23. All exposed slopes in excess of three feet (3') in height shall have a permanent irrigation system and erosion control vegetation installed, approved by the Planning Division. PRIOR TO BUILDING /GRADING PERMITS 24. Pursuant to Ordinance No. 1124, prior to the issuance of a building permit the applicant shall pay the applicable Multiple Species Habitat Conservation Plan (MSHCP) Fee. 25. Prior to issuance of any grading permit or building permits, the applicant shall sign and complete an "Acknowledgement of Conditions" form and shall return the executed original to the Planning Division for inclusion in the case records. 26. Certificates of Occupancy shall be issued in two phases. Phase one shall include the two buildings fronting on Dexter Avenue. Phase 2 shall include the other five buildings to be constructed on site. 27. The applicant shall submit a Phasing Plan for the development of the site to be reviewed and approved by the Community Development Director and Riverside County Fire Department. The Phasing Plan shall address timing for NPDES compliance, construction traffic patterns, on -site circulation, site access issues, pedestrian safety, site distances, and signage at Dexter Avenue. Agenda Item No. 1 i Page �9 of Page Twenty — City Council Minutes — November 22, 2005 28. Three (3) sets of the Final Landscaping /Irrigation Detail Plan shall be submitted, reviewed and approved by the City's Landscape Architect Consultant and the Community Development Director or designee, prior to issuance of building permit. A Landscape Plan Check & Inspection Fee will be charged prior to final landscape approval. a. All planting areas shall have permanent and automatic sprinkler system with 100% plant and grass coverage using a combination of drip and conventional irrigation methods. b. Applicant shall plant street trees, selected from the City's Street Tree List, a maximum of thirty feet (30') apart and at least twenty- four -inch (24 ") box in size. c. All planting areas shall be separated from paved areas with a six inch (6 ") high and six inch (6 ") wide concrete curb. d. Planting within fifteen feet (15') of ingress /egress points shall be no higher than thirty -six inches (36 "). e. Any transformers and mechanical or electrical equipment shall be indicated on landscape plan and screened as part of the landscaping plan. f. The landscape plan shall provide for ground cover, shrubs, and trees and meet all requirements of the City's adopted Landscape Guidelines. Special attention to the use of Xeriscape or drought resistant plantings with combination drip irrigation system to be used to prevent excessive watering. g. All landscape improvements shall be bonded 100% for material and labor for two years from installation sign -off by the City. Release of the landscaping bond shall be requested by the applicant at the end of the required two years with approval /acceptance by the Landscape Consultant and Community Development Director or Designee. h. All landscaping and irrigation shall be installed within affected portion of any phase at the time a Certificate of Occupancy is requested for any building. All planting areas shall include plantings in the Xeriscape concept, drought tolerant grasses and plants. i. Final landscape plan must be consistent with approved site plan. J. Final landscape plans to include planting and irrigation details. Agenda Item No. I � Pag . of 10-- Page Twenty -one — City Council Minutes — November 229 2005 29. Applicant shall comply with the requirements of the Elsinore Valley Municipal Water District. Proof shall be presented to the Chief Building Official prior to issuance of building permits and final approval. 30. Prior to issuance of building permits, applicant shall provide assurance that all required fees to the Lake Elsinore Unified School District have been paid. 31. Prior to issuance of building permits, applicant shall provide assurance that all requirements of the Riverside County Fire Department have been met. 32. Prior to issuance of building permits, applicant shall pay park -in -lieu fee in effect at time of building permit issuance. ENGINEERING General: 33. All Public Works requirements shall be complied with as a condition of development as specified in the Lake Elsinore Municipal Code (LEMC). 34. Pay all Capital Improvement and Plan Check fees (LEMC 16.34, Resolution 85 -26). 35. Submit a "Will Serve" letter to the City Engineering Division from the applicable water agency stating that water and sewer arrangements have been made for this project. 36. Arrangements for relocation of utility company facilities (power poles, vaults, etc.) out of the roadway shall be the responsibility of the property owner or his agent. 37. Provide fire protection facilities as required in writing by Riverside County Fire. Secure, from Fire Department. Street Improvements: 38. Construct all public works improvements (LEMC12.04). Plans must be approved and signed by the City Engineer prior to building permit approval (LEMC 16.34). 39. Street Improvement plans and specifications shall be prepared by a California Registered Civil Engineer. Improvements shall be designed to Riverside County Road Department Standards, latest edition, and City Codes (LEMC 12.04 and 16.34). Street width from curb to centerline of Dexter Avenue is 40 feet. The street improvement plans shall show existing and future profiles at centerline and top of curb and cross sections of the street. The profiles shall extend to 100 feet beyond the street frontage of the property. Agenda Item No. t Page of Page Twenty -two — City Council Minutes — November 22, 2005 1.% v 40. The street shall be improved from property line to one foot beyond centerline of the Dexter Avenue within the limits of the property's frontage. The street pavement structural section shall be minimum of 4 -inch asphalt concrete on 6 inch class II aggregate base, within the property line limits. The improvements shall include pavement, curb, gutter and sidewalk and striping as required by City Engineer. 41. Location of the access driveway to the development shall be set with consideration of minimum sight distances required for northwest bound traffic making left turn into the development and exiting vehicles proceeding either direction on Dexter Avenue. 42. Applicant shall enter into an agreement with the City for the construction of public works improvements, and shall post the appropriate bonds prior to issuance of building permits. 43. Pay all fees and meet requirements of encroachment permit issued by the City of Lake Elsinore Engineering Division for construction of public works improvements (LEMC 12.08 and Resolution 83 -87). 44. All compaction reports and grade certifications shall be submitted to the Engineering Division before final inspection of public works improvements will be scheduled and approved. 45. Applicant shall obtain all necessary off -site easements for off —site grading from the adjacent property owners. 46. All utilities, except electrical over 12 kv shall be placed underground, as approved by the serving utility. Grading: 47. Developer has submitted a Preliminary Grading and Drainage plan, Geological Soils Evaluation, and a Retention Basin Hydrology Study. The submittals were briefly reviewed for setting the conditions of approval, but engineering has not done a rigorous review and analysis of the items. They are to be re- submitted for plan checking, along with plan check fee, after the conditions of approval are finalized by the City and accepted by the developer. 48. Developer shall obtain all necessary off -site easements for off -site grading from the adjacent property owners prior to final map approval. 49. Apply and obtain a grading permit with appropriate security prior to any grading activity. Agenda Item No.E PagRu of 195— 100-1. Page Twenty -three — City Council Minutes — November 22, 2005 50. A grading plan stamped /signed by a California Registered Civil Engineer is required since the grading exceeds 50 cubic yards and the existing flow pattern is substantially modified as determined by the City Engineer. The grading plan shall show volumes of cut and fill, adequate counters and /or spot elevations of the existing ground as surveyed by a licensed surveyor or civil engineer. Contours shall extend to minimum of 15 feet beyond property lines to indicate existing drainage pattern. Apply and obtain a grading permit with appropriate security prior to grading permit issuance. 51. Provide soils, geology and seismic report, as part of this report address the requirement of the Alquist - Priolo Earthquake Fault Zoning Act. Provide final soils report showing compliance with recommendations. 52. In accordance with the City's Franchise Agreement for waste disposal & recycling, the applicant shall be required to contract with CR &R Inc. for removal and disposal of all waste material, debris, vegetation and other rubbish generated during cleaning, demolition, clearing and grubbing or all other phases of construction. 53. All grading shall be done under the supervision of a geotechnical engineer and he shall certify all slopes steeper than 2 to 1 for stability and proper erosion control. Drainage: 54. All natural drainage traversing site shall be conveyed through the site, or shall be collected and conveyed by a method approved by the City Engineer. 55. Submit Hydrology and Hydraulic Reports per Riverside County Flood Control District for review and approval by City Engineer. Developer shall mitigate any flooding and/or erosion caused by development of site and diversion of drainage. 56. All drainage facilities in this project shall be constructed according to Riverside County Flood Control District Standards. 57. Storm drain inlet facilities shall be appropriately stenciled to prevent illegally dumping in the drain system, the wording and stencil shall be approved by the City Engineer. 58. A drainage acceptance letter will be necessary from the downstream property owners for out - letting the proposed storm water run -off on private property. Agenda Item No. i T Pagd973of -7S Page Twenty -four — City Council Minutes — November 22, 2005 59. Applicant shall provide the city with proof of his having filed a Notice of Intent with the Regional Water Quality Control Board for the National Pollutant Discharge Elimination System ( NPDES) program with a storm water pollution prevention plan prior to issuance of grading permits. The applicant shall provide a SWPPP for construction period and a project - specific WQMP for post construction including its maintenance implementation. The project — specific WQMP shall demonstrate that discharge flow rates, velocities, duration, and volume, for the post construction condition, from a 2 -year and 10 -year, 24- hour rainfall event will not cause significant adverse impacts on downstream erosion and receiving waters, or measures are implemented to mitigate significant adverse impacts to downstream public facilities and water bodies. 60. Developer shall use Site Design BMPs such as minimizing impervious areas, maximizing permeability, minimizing directly connected impervious areas, creating reduced or zero discharge areas, and conserving natural areas, and allow runoff to sheet -flow through landscaped swales or natural drainage channels. 61. The project - specific WQMP shall provide measures to minimize the impact from the Pollutants of Concern and Hydrologic Conditions of Concern identified for the Project. Where Pollutants of Concern include pollutants that are listed as causing or contributing to impairments of Receiving Waters, BMPs must be selected so that the project does not cause or contribute to an exceedance of water quality objectives. The WQMP shall incorporate the applicable Source Control, and treatment Control BMPs as described in the Santa Ana River Region WQMP and provide information regarding design considerations, and the long -term operation and maintenance requirements for BMPs requiring long -term maintenance, as well as the mechanism for funding the long -term operation and maintenance of the BMPs requiring long -term maintenance. 62. Prior to issuance of any building or grading permits, the property owner shall record a "Covenant and Agreement" with the County -Clerk Recorder to inform future property owners of the requirement to implement the approved project - specific WQMP. The project applicant shall cause the approved final project - specific WQMP to be incorporated by reference or attached to the project's Storm Water Pollution Prevention Plan as the Post - Construction Management Plan. 63. Education guidelines for Water Quality Management Practices (WQMP) shall be provided to the tenants, operators and owners of the businesses of the development, regarding the environmental awareness on good housekeeping practices that contribute to protection of storm water quality and meet the goals of the WQMP in the Riverside County NPDES Drainage Area Management Plan. Agenda Item No. i t Pag��of `3� r-- Page Twenty -five — City Council Minutes — November 22, 2005 64. Prior to building permit close -out or the issuance of a certificate of occupancy or certificate of use, the applicant shall: A— Demonstrate that all structural BMPs described in the project- specific WQMP have been constructed and installed in conformance with approved plans and specifications; B— Demonstrate that applicant is prepared to implement all non - structural BMPs described in the approved project- specific WQMP; and C— Demonstrate that an adequate number of copies of the approved project- specific WQMP are available for the future owners /occupants. 65. Developer shall be subject to all Mater Planned Drainage fees and will receive credit for all master Planned Drainage facilities constructed. 66. Developer shall provide first flush BMP's using the best available technology that will reduce storm water pollutants from internal local and collector streets prior to entering into outside street drainage facilities (MS4). Dedications: 67. Dedicate an additional 25 feet of right of way, for a total of 50 feet of right of way from property line to centerline of Dexter Avenue, along the Dexter Avenue frontage of the property, prior to issuance of building permit. FEES: 68. Pay all Capital Improvement and Plan Check fees (LEMC 16.34). Pay Parkland, Master Drainage, TIF and TUMF and MSHCP and Kangaroo Rat Fee fees prior to issuance of building permit. The Parkland Fee is $0.10 per square feet of enclosed space; Master Drainage Plan Fee for Arroyo Del Toro District is $7,120.00 per acre; The TIF amount is $3.84 per square foot of building; TUMF amount is $3.52 per square foot of building; MSHPC Local Development Mitigation Fee is 5,620.00 per acre. Kangaroo Rat Fee is $500.00 per acre based on gross acreage. BUILDING AND SAFETY DEPARTMENT Agenda Item No.T� Page &V_Of w Page Twenty -six — City Council Minutes — November 22, 2005 69. The applicant shall provide A. D. A. accessible "path of travel" from the rental office to a building or buildings to assure access to at least one of each size of storage units provided. RIVERSIDE COUNTY FIRE DEPARTMENT 70. Prior to issuance of building permits, applicant shall provide assurance that all requirements and Conditions of Approval of the Riverside County Fire Department have been met. 37. Industrial Design Review No. 2005 -03 Vanderhoek Industrial Buildings. Mayor Magee introduced the item and deferred to Community Development Director Preisendanz. Mr. Preisendanz gave in -depth overview of the item. He indicated that the project went before the Planning Commission on November 1, 2005. He further indicated that the Planning Commission was recommending approval to the City Council. 1*A0 MOVED BY BUCKLEY, SECONDED BY SCHIFFNER AND CARRIED BY UNANIMOUS VOTE TO ADOPT RESOLUTION NO. 2005-1679 APPROVING INDUSTRIAL DESIGN REVIEW NO. 2005-03. GENERAL 1. The applicant shall defend (with counsel acceptable to the City), indemnify, and hold harmless the City, its Official, Officers, Employees, and Contract Agents from any claim, action, or proceeding against the City, its Official, Officers, Employees, Contract Consultants, or Agents to attach, set aside, void, or annul an approval of the City, its advisory agencies, appeal boards, or legislative body concerning the subject project located at the northeast corner of Minthom and 3`d Streets, which action is bought within the time period provided for in California Government Code Sections 65009 and/or 66499.37, and Public Resources Code Section 21167. The City will promptly notify the Applicant of any such claim, action, or proceeding against the City and will cooperate fully with the defense. If the City fails to promptly notify the Applicant of any such claim, or proceeding, the Applicant shall not, thereafter, be responsible to defend, indemnify, or hold harmless the City. INDUSTRIAL DESIGN REVIEW NO. 2005-03 Agenda Item No. Pag?�'of —R5— Page Twenty -seven — City Council Minutes — November 22, 2005 2. The design review approval for Industrial Design Review No. 2005 -03 will lapse and be void unless building permits are issued within one (1) year. An extension of time, up to one (1) year per extension, may be granted by the Community Development Director prior to the expiration of the initial Design Review approval upon application by the developer one (1) month prior to expiration. 3. All Conditions of approval shall be reproduced on page one of building plans prior to their acceptance by Building Division. All Conditions of Approval shall be met prior to the issuance of a Certificate of Occupancy and release of utilities. 4. All site improvements approved with this request shall be constructed as indicated on the approved site plan and elevations. Revisions to approved site plans or building elevations shall be subject to the review of the Community Development Director. All plans submitted for Building Division Plan Check shall conform to the submitted plans as modified by Conditions of Approval, or the Planning Commission/City Council through subsequent action. 5. Structures shall be placed on -site as depicted on the site plan and/or as modified by the Community Development Director or designee. 6. Trash enclosures shall be constructed per City standards as approved by the Community Development Director or designee, prior to issuance of building permit. 7. The Planning Division shall approve construction trailers utilized during construction. All construction trailers shall require a $1,000.00 cash bond for each. 8. All roof mounted or ground support air conditioning units or other mechanical equipment incidental to development shall be architecturally screened or shielded by landscaping so that they are not visible from neighboring property or public streets. Any roof mounted central swamp coolers shall also be screened, and screening plan shall be approved by the Community Development Director, prior to issuance of building permit. 9. All loading zones shall be clearly marked with yellow striping and shall meet City Standards for Type `A' loading zones (12' x 20') and Type `B' loading zones (12' x 40'). 10. Any alteration or expansion of this Design Review approval shall be reviewed according to the provisions of Chapter 17.82 (Design Review) of the Lake Elsinore Municipal Code. 11. Materials and colors depicted on the plans and materials board shall be used unless modified by the Community Development Director or designee. Agenda Item No._I� Page7of Page Twenty -eight — City Council Minutes — November 22, 2005 ,"No 12. All exterior on -site lighting shall be shielded and directed on -site so as not to create glare onto neighboring property and streets or allow illumination above the horizontal plane of the fixture. All light fixtures shall be consistent with the architectural style of the building. Therefore, a photometric study shall be submitted and approved prior to the issuance of building permits. 13. All exterior downspouts shall be concealed or architecturally screened and painted to match the exterior color of the building as approved by the Community Development Director or Designee. 14. The applicant shall submit a Sign Program for the approval of the Planning Commission prior to the issuance of the first building permit. 15. All building signage shall comply with the Sign Program approved by the Planning Commission. 16. All drive aisles and loading areas shall be kept and maintained free and clear of any materials /merchandise so as not to obstruct on -site circulation and deliveries. 17. Parking stalls shall be double - striped with four -inch (4 ") lines two feet (2') apart. 18. Provide a 12 -inch concrete paver along the side of parking stalls that are adjacent to planters (paver to include curb width). 19. Applicant shall meet ADA (Americans with Disabilities Act) requirements. 20. No exterior roof ladders shall be permitted. 21. All service and loading doors shall be painted to match the building. 22. On -site surface drainage shall not cross sidewalks. PRIOR TO BUILDING /GRADING PERMITS 23. Prior to issuance of. any grading permit or building permits, the applicant shall sign and complete an "Acknowledgement of Conditions" form and shall return the executed original to the Planning Division for inclusion in the case records. 24. Three (3) sets of the Final Landscaping /Irrigation Detail Plan shall be submitted, reviewed and approved by the City's Landscape Architect Consultant and the Community Development Director or designee, prior to issuance of building permit. A Landscape Plan Check & Inspection Fee will be charged prior to final landscape approval based on the Consultant's fee plus forty percent (40 %) City fee. Agenda Item No. Page-?7of.25— rI- Page Twenty -nine — City Council Minutes — November 22, 2005 a) All planting areas shall have permanent and automatic sprinkler system with 100% plant and grass coverage using a combination of drip and conventional irrigation methods. b) Applicant shall plant street trees selected from the City's Street Tree List, a maximum of thirty feet (30') apart and at least twenty- four -inch (24 ") box in size. c) All planting areas shall be separated from paved areas with a six inch (6 ") high and six inch (6 ") wide concrete curb. d) Planting within fifteen feet (15') of ingress /egress points shall be no higher than thirty -six inches (36 "). e) Landscape planters shall be planted with an appropriate parking lot shade tree pursuant to the LEMC and Landscape Design Guidelines. f) Any transformers and mechanical or electrical equipment shall be indicated on landscape plan and screened as part of the landscaping plan. g) The landscape plan shall provide for ground cover, shrubs, and trees and meet all requirements of the City's adopted Landscape Guidelines. Special attention to the use of drought resistant plantings with combination drip irrigation system to be used to prevent excessive watering. h) All landscape improvements shall be bonded 100% for material and labor for two years from installation sign -off by the City. Release of the landscaping bond shall be requested by the applicant at the end of the required two years with approval /acceptance by the Landscape Consultant and Community Development Director or Designee. i) All landscaping and irrigation shall be installed within affected portion of any phase at the time a Certificate of Occupancy is requested for any building. All planting areas shall include plantings in the Xeriscape concept, drought tolerant grasses and plants. j) Final landscape plan must be consistent with approved site plan. k) Final landscape plans to include planting and irrigation details. 25. Applicant shall comply with the requirements of the Elsinore Valley Municipal Water District. Proof shall be presented to the Chief Building Official prior to issuance of building permits and final approval. Agenda Item No.A� Page of Page Thirty — City Council Minutes — November 22, 2005 26. Prior to issuance of building permits, applicant shall provide assurance that all required fees to the Lake Elsinore Unified School District have been paid. 27. Prior to issuance of building permits, applicant shall provide assurance that all requirements of the Riverside County Fire Department have been met. 28. The Multiple Species Habitat Conservation Fee (MSHCP) will be due upon issuance of each building permit. 29. Prior to issuance of building permits, applicant shall pay park -in -lieu fee in effect at time of building permit issuance. 30. The applicant shall at all times comply with Section 17.78 (Noise Control) of the Lake Elsinore Municipal Code. ENGINEERING 31. All Public Works requirements shall be complied with as a condition of development as specified in the Lake Elsinore Municipal Code (LEMC) prior to issuance of building permit. 32. Underground water rights shall be dedicated to the City pursuant to the provisions of Section 16.52.030 (LEMC) and be consistent with the City's agreement with the Elsinore Valley Municipal Water District. 33. Pay all Capital Improvement; including TIF and TUMP fees, and Plan Check fees (LEMC 16.34, Resolution 85 -26), mitigation fees, area drainage fee, and encroachment permit fees associated with the project and its development. 34. Submit a "Will Serve" letter to the City Engineering Division from the applicable water agency stating that water and sewer arrangements have been made for this project. Submit this letter prior to grading plan approval. 35. An Alquis- Priolo study shall be performed on the site to identify any hidden earthquake faults and/or liquefaction zones present on -site or a licensed geologist or a geotechnical engineer shall prepare a statement, stating there are no known earthquake faults or liquefaction zones present. Street Improvements Agenda Item No.—IS Page- ,"we ,"no Page Thirty -one — City Council Minutes — November 22, 2005 36. All adjacent street improvements currently exist, accept sidewalk on Minthorn and 3rd streets. The site plan and the grading plan both show sidewalk construction. The applicant shall meet with the City Engineer to review the need for sidewalks prior to grading permit. Nearby existing street improvements and developed buildings do not always have sidewalks and as such, sidewalks may be deleted, subject to the City Engineer. 37. Applicant shall obtain any necessary off -site easements for off -site grading or construction from the adjacent property owners prior to issuance of grading permit. 38. Apply and obtain a grading permit prior to building permit issuance. A grading plan signed and stamped by a California Registered Civil Engineer shall be required if the grading exceeds 50 cubic yards or the existing flow pattern is substantially modified as determined by the City Engineer. If the grading is less than 50 cubic yards and a grading plan is not required, a grading permit shall still be obtained so that a cursory drainage and flow pattern inspection can be conducted before grading begins. Grading 39. All grading shall be done under the supervision of a geotechnical engineer and he shall certify all slopes steeper than 2 to I for stability and proper erosion control. 40. If applicable, prior to commencement of grading operations, applicant to provide to the City with a map of all proposed hauls routes to be used for movement of import/export material. Such routes shall be subject to the review and approval of the City Engineer. 41. Applicant to provide to the City a photographic baseline record of the condition of all proposed public City haul roads. In the event of damage to such roads, applicant shall pay full cost of restoring public roads to the baseline condition. A bond may be required to ensure payment of damages to the public right -of -way, subject to the approval of the City Engineer. 42. All waste material, debris, vegetation and other rubbish generated during cleaning, demolition, clear and grubbing or other phases of the construction must be disposed of at appropriate recycling centers. The applicant should contract with CR &R, Inc., for recycling and storage container services, but the applicant may use the services of another recycling vendor. Another recycling vendor, other than CR &R, Inc., cannot charge the applicant for bin rental or solid waste disposal. If the applicant is not using CR &R, Inc., for recycling services and the recycling material is either sold or donated to another vendor, the applicant shall supply proof of debris disposal at a recycling center, including verification of tonnage by certified weigh master tickets. Agenda Item No. 1 Pagd,33017 ,3.r Page Thirty -two — City Council Minutes — November 22, 2005 N%O'' Utilities 43. Arrangements for relocation of utility company facilities (power poles, vaults, etc.) out of the roadway or alley shall be the responsibility of the property owner or his agent. 44. Provide fire protection facilities as required in writing by the Riverside County Fire Department. 45. Developer shall install blue reflective pavement markers in the street at all fire hydrant locations. Drainage 46. A hydrology and hydraulic study and calculations for the proposed on site storm drainage system shall be submitted and approved prior to issuance of a grading permit. 47. Meet all requirements of LEMC 15.68 regarding flood plain management. 48. The Riverside County Water Quality Management Plan requires this project to prepare a project specific Water Quality Management Plan (WQMP). As such the applicant will be required to prepare a WQMP install BMP's using the best available technology to mitigate any urban pollutants from entering the watershed. The plan shall identify "pollutants of concern" and "hydrologic conditions of concern", and mitigate in accordance with the Riverside County Water Quality Management Plan. Said plan shall be approved prior to the issuance of a grading or site development permit. 49. Applicant will be required to install BMP's to mitigate urban pollutants from entering the watershed. Applicant shall provide BMP's that will reduce stormwater pollutants from parking areas and driveways. This would include the use of a bio- filter swale or other BMP techniques. Education guidelines and Best Management Practices (BMP) shall be provided to the property owner and/or tenant in the use of herbicides, pesticides, fertilizers as well as other environmental awareness education materials on good housekeeping practices that contribute to protection of stormwater quality and meet the goals of the BMP. 50. All drainage facilities in this site shall be constructed to Riverside County Flood Control District Standards. Agenda Item No. PagdU ofw ~ Page Thirty -three — City Council Minutes — November 22, 2005 51. Storm drain inlet facilities shall be appropriately stenciled to prevent illegal dumping in the drain system; the City Engineer shall approve the wording and stencil. 52. 10 -year storm runoff should be contained within the curb and the 100 -year storm runoff should be contained with the street right -of -way. When either of these criteria is exceeded, drainage facilities should be installed. 53. Applicant shall obtain approval from Santa Ana Regional Water Quality Control Board for their stormwater pollution prevention plan including approval of erosion control for the grading plan prior to issuance of grading permits. 54. Development shall be designed to comply with the applicable Fire Department conditions of approval for allow for Fire Truck turning movements on site as well as onto the site. Truck turning template showing trucks turning to back into all loading bays shall be required. 55. In accordance with the City's Franchise Agreement for waste disposal & recycling, the applicant shall be required to contract with CR &R Inc. for removal and disposal of all waste material, debris, vegetation and other rubbish generated during cleaning, demolition, clear and grubbing or all phases of construction and operation. RIVERSIDE COUNTY FIRE DEPARTMENT 56. The applicant shall comply with all comments and conditions of approval from the Riverside County Fire Department. COMMUNITY SERVICES DEPARTMENT 57. Applicant shall pay park -in -lieu fees for all proposed commercial buildings. 58. Applicant to maintain all on -site landscaping. 59. Applicant to comply with all City Ordinances regarding construction debris and removal (Chapter 8.16 LEMC). PUBLIC COMMENTS - NON - AGENDIZED ITEMS - 3 MINUTES Louisa Dixon, 21067 Kimberly Court, commented on the proposed Holiday Inn Express project. She commented on the vote made by the Planning Commission on November 15, 2005. She noted that the first hotel could not meet the current 40% requirement on maximum allowable floor area ratio and requested it to be Agenda Item No. .P Pag _ of Page Thirty -four — City Council Minutes — November 22, 2005 70 %. She noted that they also requested a 10 foot height increase. She further noted that the project manager was asked if the project could viably continue and meet Lake Elsinore existing codes and the project responded by saying "no ". She commented on traffic congestion. CITY MANAGER COMMENTS City Manager Brady commented on the following: 1) Announced the following upcoming events: Dec 2nd — Winterfest 2005 Dec 4th — Open Air Market Dec 8th — CDBG applications due Dec 10th — Breakfast with Santa at the Senior Center Dec 10th — Holiday Home Tour Dec 17th — Parents Night Out at the Lake Community Center He wished everyone a happy Thanksgiving and encouraged residents to shop in the City. CITY ATTORNEY COMMENTS City Attorney Leibold commented on the following: No comments. COMMITTEE REPORTS None. CITY TREASURER COMMENTS No comments. Agenda Item No. I � Pages _ -- f,3 5 ,#-.. Page Thirty -five — City Council Minutes - November 22, 2005 CITY COUNCIL COMMENTS Councilmember Kelley commented on the following: 1) Wished everyone a happy Thanksgiving. 2) Commended the EVCAP Committee for the parade. Mayor Pro Tem Schiffner commented on the following: 1) Wished everyone a happy Thanksgiving. Councilmember Hickman commented on the following: l) He commented that H.O.P.E. would be sponsoring a Thanksgiving Dinner. 1'-- 2) He commented that the YES Center was serving Thanksgiving Dinner. Councilmember Buckley commented on the following: 1) Wished everyone a happy Thanksgiving. Mayor Magee commented on the following: 1) He commented on item #36; and noted that next year he expected to see the same level of matured trees in front of the building. He will not be expecting to see twigs. ADJOURNMENT The Regular City Council Meeting was adjourned at 8:24 p.m. Agenda Item No. Pag01/of Page Thirty -six — City Council Minutes — November 22, 2005 ATTEST: FREDERICK RAY, CITY CLERK CITY OF LAKE ELSINORE ROBERT E. MAGEE, MAYOR CITY OF LAKE ELSINORE Agenda Item NNo.4 Page`_l of '3` ..0$r DECEMBER 30, 2005 CITY OF LAKE E]LSINOR E FUND# FUND DESCRIPTION WARRANT SUNI ARY TOTAL 100 1.05 110 GENERAL FUND MISCELLANEOUS GENERAL PROJECT FUND STATE GAS TAX FUND $ 1,266,590.16 10,767.97 1,003.97 112 TRANSPORTATION /MEASURE A FUND 12,444.45 115 TRAFFIC SAFETY FUND 60,000.00 130 LIGHTING /LANDSCAPE MAINTENANCE FUND 36,078.20 135 L.L.M.D. NO. 1 FUND 250.00 150 C.D.B.G. FUND 610.74 204 SIGNAL C.I.P. FUND 67.86 205 TRAFFIC IMPACT FEE FUND 1,492.92_ 221 PARK C.I.P. FUND 1,600.00 231 LIBRARY C.I.P. FUND 5,925.67 254 89 -1 RAILROAD CANYON IMPROVEMENT FUND 5,334.45 357 C.F.D. 2003 -02 DEBT SERVICE FUND 675.00 358 C.F.D. 91 -2 DEBT SERVICE FUND 450.00 362 C.F.D. 95 -1 (1996 -E) DEBT SERVICE FUND 450.00 363 C.F.D. 88 -3 (1111997-A) DEBT SERVICE FUND 675.00 366 C.F.D. 2005 -6 CITY CENTER DEBT SERVICE FUND 450.00 369 C.F.D. 2004 -3 ROSETTA CANYON DEBT SERVICE FUND 1,115.00 371 C.F.D. 2005 -1 SERENITY /KB DEBT SERVICE FUND 450.00 372 C.F.D. 2005 -02 ALBERHILL RANCH DEBT SERVICE FUND_ 840.00 605 PUBLIC IMPROVEMENT TRUST FUND 203.58 606 MOBILE SERVICE AIR POLLUTION FUND 180.00 608 TRUST DEPOSIT AND PRE -PAID EXPENSE FUND 70,000.00 620 COST RECOVERY SYSTEM 7,202 33 650 C.F.D. 2003 -1 LAW & FIRE DEBT SERVICE FUND 250.00 GRAND TOTAL $ 1,485,107.30 N"or AGENDA ITEM NO. OZ 12/30/2005 Warrant 122905 1 of 1 PAGE OF ` _ DECEMBER 30, 2005 CITY OF LAKIE ELSE",40]E WARRANT LIST CHECK# VENDOR NAME AMOUNT 84121 CSMFO $ 50.00 84248 84275 VOID (SCOTT MORRISON & ASSOCIATES) CALIFORNIA P.E.R.S. (1,060.00) 38,380.24 84276 ICMA RETIREMENT TRUST 3,653.00 84277 ALTURA CREDIT UNION 1,000.00 84278 SIZZLER RESTAURANT 464.64 84279 ICMA RETIREMENT TRUST 3,271.00 84280 VOID 0.00 84281 A & A JANITORIAL SERVICES 600.00 84282 ALLIED TRAFFIC EQUIPMENT 725.69 84283 AMERICAN FENCE COMPANY, INC. 60.00 84284 AMERICAN FORENSIC NURSES 602.50 84285 APPLE ONE EMPLOYMENT SERVICES _ 711.43 84286 CYNTHIA BLOOD - WILSON 117.75 84287 BOATS PLUS 2,091.27 84288 BREAD OF LIFE FELLOWSHIP 70,000.00 84289 BUNDY CANYON TURF SUPPLY 424.54 84290 BUY ONLINE NOW.COM 87.10 84291 C. RA R. DISPOSAL, INC. 2,892.36 84292 CANON FINANCIAL SERVICES, INC. 1,038.96 84293 CARL GRAVES 20.07 84294 CCAC -IIMC 2006 50.00 84295 _ CENTRAL SECURITY SERVICES, INC. 117.00 84296 CITICORP VENDOR FINANCE, INC. 770.41 ,--,84297 CNH CAPITAL AMERICA, L.L.C. 3,251.42 84298 COLLEGIATE PACIFIC 746.24 84299 COMP BILLING & FUNDING, INC. -2595 19.90 84300 COMPUTER ALERT SYSTEMS, INC. 405.00 84301 KIRT A. COURY 5,551.62 84302 CUTTING EDGE STAFFING, INC. 1,192.50 84303 D & S ELECTRIC _ 1,983.50 84304 DANIELS TIRE SERVICE, INC. 236.16 84305 ALMA DE LA CRUZ _ 105.00 84306 DO IT CENTER _ _ 229.47 84307 _ CAROLE K. DONAHOE, A.I.C.P. 1,844.30 84308 -84314 ELSINORE VALLEY MUNICIPAL WATER DISTRICT 27,402.21 84315 E.D.C. SOUTHWEST RIVERSIDE COUNTY 6,250.00 84316 EILEEN'S CLEANERS 200.50 84317 ELITE ELEVATOR, INC. 312.00 84318 ELSINORE PIONEER LUMBER COMPANY 27.62 84319 ELSINORE VALLEY RENTALS 148.00 84320 ELSINORE VALLEY SELF STORAGE 77.00 84321 EXCEL LANDSCAPE, INC. 2,391.49 84322 FED EX KINKO'S 35.02 84323 FEDERAL EXPRESS CORPORATION 44.35 84324 FERGUSON GROUP, L.L.C. 6,000.00 84325 FIRST AMERICAN REAL ESTATE SOLUTION 148.30 _ 84326 FOR THE RECORD 5,427.69 84327 _ FROST'S AMERI- CLEAN, INC. 129.00 84328 -84329 GREENSCAPE LANDSCAPE, INC. 11,235.00 �- .84330 ARLINE GULBRANSEN 305.39 34331 -84332 HARRIS & ASSOCIATES, INC. 30,272.00 84333 HARTZOG & CRABILL, INC. 517.50 12/30/2005 Warrant 122905 1 OF 3 AGENDA ITEM NO. PAGE �-)- OF DECENMER 30, 2005 CITY OF LAKE ELSINORE WARRANT LIST CHECK# VENDOR NAME AMOUNT 84334 HEMET FENCE CO. 725.00 84335 HI -WAY SAFETY, INC. 57.38 84336 84337 JEFF HOWIE IMPACT PROMOTIONAL PRODUCT 11,804.35 145.85 84338 INLAND EMPIRE LOCK & KEY 7.27 84339 JEFF HAUSER'MOBILE WELDING 2,160.00 84340 JOBS AVAILABLE, INC. 173.40 84341 KIRSTEN KING 438.75 84342 LAKE CHEVROLET 6.03 84343 LAKE ELSINORE FORD 1,543.39 84344 NANCY LASSEY- HEFINGTON 78.00 84345 LEAGUE OF CALIFORNIA CITIES 10,937.00 84346 LEAS NEXIS 1,221 00 84347 LIBRARY SYSTEMS & SERVICES, L.L.C. 5,775.67 84348 LSA ASSOCIATES, INC. 1,820.00 84349 THOMAS A. MARTIN 1.00 84350 MCGRAW -HILL COMPANIES 42.86 84351 LINDA M. MILLER 3,850.00 84352 MOBILE SATELLITE VENTURES, L.P. 74.04 84353 NELSON PAVING, INC. 4,940.45 84354 NEXTEL COMMUNICATIONS 1,476.45 84355 _ NORTH COUNTY TIMES 644.46 84356 _ DENNIS A. PETERSEN D.O., INC. 420.00 84357 PHD PENSKE LEASING 898.58 84358 PREMIUM PALOMAR MOUNTAIN SPRING WATER 538.45 84359 THE PRESS ENTERPRISE 1,863.75 84360 PRODUCTION VIDEO 90.00 V° 84361 PRUDENTIAL OVERALL SUPPLY 84362 -84363 QUILL CORPORATION 1,470.81 84364 _ _ QUINLAN PUBLISHING GROUP 195.89 84365 RIGHTWAY 22.63 84366 RIVERSIDE COUNTY ECONOMIC DEVELOPMENT AGENCY 12,500.00 84367 COUNTY OF RIVERSIDE TRANSPORTATION AND LAND MANAGEMENT 60,000.00 84368 COUNTY OF RIVERSIDE, BOB DOYLE, SHERIFF 943.54 84369 ANTHONY ROMERO 400.00 84370 _ ROTARY CLUB OF LAKE ELSINORE 440.00 84371 SCOTT MORRISON & ASSOCIATES 1,060.00 84372 DAVID S. SOLOMON 3,528.72 84373 -84377 SOUTHERN CALIFORNIA EDISON CO. 34,945.12 84378 SOUTHERN CALIFORNIA GAS CO. 674.21 84379 _ SOUTHWEST ENTERPRISES 65.00 84380 - STAPLES CREDIT PLAN 779.83 84381 BOB STOVER, INC. 4,931.16- 84382 SUDHAKER COMPANY INTERNATIONAL 12,218.71 84383 SUNGARD HTE, INC. 4,439.77 84384 TEAM AUTOAID, INC. 152.62 94385 TEAMAN, RAMIREZ & SMITH, INC. 21,600.00 84386 TEMECULA COPIERS 479.97 84387 _ TEMPLETON PLANNING GROUP 3,775.00 84388 TEXTRON FINANCIAL CORPORATION 987.13 84389 TICOR TITLE COMPANY 300.00 84390 UNION BANK OF CALIFORNIA 43,094.35 Sftmtv* 12/30/2005 Warrant AGENDA ITEM NO. 122905 2 OF 3 PAGE 3 OF �/ DECEMBER 30, 2005 CITY OF LAKE ELSINORE CHECK# VENDOR NAME WARRANT LIST AMOUNT 84391 UNITED PARCEL SERVICE 91.09 84392 VENUS PRINTING 353.98 84393 VERIZON CALIFORNIA, INC. _ 1,286.47 84394 VERIZON EQUIPMENT SALES & SERVICE 491.73 84395 VERIZON ONLINE _ 165.05 84396 VIZION'S WEST, INC. 14,320.00 84397 WEST COAST ARBORISTS, INC. 301.20 84398 WEST COAST WINDOW CLEANING 450.00 84399 WESTERN RIVERSIDE COUNCIL OF GOVERNMENTS 610,089.00 84400 WILLDAN 3,808.00 84401 ZONES.COM 415.10 84402 ALTURA CREDIT UNION 1,150.00 84403 CALIFORNIA P.E.R.S. 38,441.86 TOTAL $ 1,164,783.52 P/E DATE: 12/09/05 PAYROLL TAXES 45,511.48 12/09/05 PAYROLL CASH _ 118,723.32 12/23/05 PAYROLL TAXES 42,806.92 12/23/05 PAYROLL CASH 113,282.06 GRAND TOTAL $ 1,485,107.30 AGENDA ITEM NO. 12/30/2005 Warrant 122905 3 OF 3 PAGE 'V OF e/ CITY OF LAKE ELSINORE REPORT TO CITY COUNCIL TO: MAYOR AND CITY COUNCIL FROM: ROBERT A. BRADY, CITY MANAGER DATE: JANUARY 10, 2006 SUBJECT: UPDATE TO LAIF RESOLUTION BACKGROUND As is required by the State of California Local Agency Investment Fund, upon termination of employment of an authorized signer, the City should remove those terminated from employment with the City and replace them as an authorized signer as necessary. DISCUSSION After a review of Staff available for this task, it is believed that Mr. David W. Sapp, Director of Community Services should be the replacement signature for Mrs. Vicki Kasad. The current signers are the City Manager, the Director of Administrative Services, and the Finance Division Manager. FISCAL IMPACT NONE. RECOMMENDATION Staff hereby recommends that Council approve Resolution #- ;2 &—ol which names Mr. David W. Sapp as an additional authorized signer for all Local Agency Investment Accounts held at the State of California. AGENDA MM NO. FAGX--L OF '� PREPARED BY: REVIEWED BY: APPROVED FOR AGENDA BY: KIM D. MAGEE FINANCE DIVISION MANAGER MATT N. PRESSEYjv DIRECTOR OF ADMINISTRATIVE SERVICES MANXGERWOFFICE AGENDA ITEM N0. City of Lake Elsinore Regular Account Resolution Resolution of the City of Lake Elsinore Resolution # I ­0 1 Agency Agency Address: 130 S. Main St., Lake Elsinore, CA. 92530 Phone Number: (951) 674 -3124 AUTHORIZING INVESTMENT OF MONIES IN THE LOCAL AGENCY INVESTMENT FUND WHEREAS, Pursuant to Chapter 730 of the statutes of 1976 Section 16429. It was added to the California Government Code to create a Local Agency Investment Fund in the State Treasury for deposit of money of a local agency for purposes of investment by the State Treasurer; and WHEREAS, the City Council does hereby find that the deposit and withdrawal of money in the Local Agency Investment Fund in accordance with the provisions of Section 16429.1 of the Government Code for the purpose of investment as stated therein as in the best interests of the City. NOW THEREFORE, BE IT RESOLVED, that the City Council does hereby authorize the deposit and withdrawal of City monies in the local Agency Investment Fund in the State 'mwo Treasury in accordance with the provisions of Section 16429.1 of the Government Code for the purpose of investment as stated therein, and verification by the State Treasurer's Office of all banking information provided in that regard. BE IT FURTHER RESOLVED, that the following City officers or their successors in office shall be authorized to order the deposit or withdrawal of monies in the Local Agency Investment Fund: David W. Sane Director of Community Servic `-c/ Signature) Matt N. Pressev Director of Administrative S rvices (Signature) Robert A. Bray Kim Magee Fin ee 'vision Manager (Signature) •.r PASSED AND ADOPTED, by the City Council of the City of Lake Elsinore, Riverside County of the State of California on January 10, 2006. 3 A600A REM NO PAGE IF — DATE 1/10/2006 ADDITIONS LOCAL AGENCY INVESTMENT FUND AUTHORIZATION FOR TRANSFER OF FUNDS AGENCY NAME City of Lake Elsinore LAW ACCOUNT # 98- 33-411 DELETIONS Name Vicki Kasad Director of Administrative Services Print Title Matt N. Presse Print Name X Authorized afore (Must be authorizeirper Resolution) Please mail completed form to: State Treasurer's Office Local Agency Investment Fund P. O. Box 942809 Sacramento, CA. 94209 -0001 Finance Manager Print Title Kim Magee Print Name X 14, r 0 "1- - Authorized Sign re (Must be authorized per Resolution) Two authorized signatures required .AGENDA ITEM No `j PACE � OF -° CITY OF LAKE ELSINORE REPORT TO CITY COUNCIL TO: MAYOR AND CITY COUNCIL FROM: ROBERT A. BRADY, CITY MANAGER DATE: JANUARY 10, 2006 SUBJECT: AWARD OF BID — GRAND AVENUE LANDSCAPE BACKGROUND As part of the 2005 -2006 CIP Program was an allocation of $50,000 for the landscape installation in the Grand Avenue median. DISCUSSION The installation project will have the existing irrigation system converted to a drip `ao system to avoid runoff and future damage to the asphalt. The median will then be planted with approximately 2,096 plants. The project will cover the median from Broadway to Lincoln Avenue. Chapter 3.08.070 (F) — Exceptions to Bid Procedures, allows the City Council to authorize the City Manager or the Purchasing Officer to bypass the bid process required under this chapter for purchases greater than $15,000. Staff is requesting that the City Council authorize the exemption of the formal bid process (3.08.200) and allow staff to utilize the "Open Market" purchasing process for this project, and award the bid to Excel Landscape in the amount of $19,072. FISCAL IMPACT The funding for this project is available as part of the 2005 -2006 Capital Improvement Program. ,%Ww ACENDA 3TEIM NO. q PACE k OF Ir REPORT TO CITY COUNCIL JANUARY 10, 2006 PAGE 2 RECOMMENDATION It is staff's recommendation that the Mayor and City Council grant an exemption as per Chapter 3.08.070 (F) "Exceptions to Bid Procedures" for the landscape installation on Grand Avenue and award the bid to Excel Landscape in thomount of $19,072. PREPARED BY: APPROVED FOP AGENDA BY: G✓ VID W. SAPP, DIRECTO COXIMUNITY SERVICES PA02- -G _0L1 -- EXHIBIT "A" Excel Landscape Greenscape $19,072.00 $19,450.00 Southland Aquatic Management $21,932.00 ..0► AGENDA ITEM PAGE OF L Name /,address City of Lake Elsinore — 521 N_ Langstaff Lake Elsinore, CA 92330 Attn: Don Gibbem Description Ile: Grand Ave. Median -Drip Conversion DEC 0 9 2005 Rep P"'do'n ice. material and equipment to provide the following 110 1- gallon Pyracantha Tiny Tim 59 5- gallon Flax 19271- gailon Myoporum Psrv, ifolium 90 Yw ds Mulch in Place ry Ave. 1(18 - 0eene. C�192"8-5726 1951? 735-NO Fax ('8611 7WID4W - tae M 680653 Proposal date Estknate # 12/5/2005 2160 1606 Hunter PCB bubbim and related plumbing as per attached detail Xnstap bubblers and check valve with PVC tied to cxisting lateral. Location Gr Ave. and f �Y Total Sionature Salesman Joe Jr. Rate r Total 0.00 660.00 660.00 950.00 950.00 8,562.00 8,562.00 2,700.00 2,700.00 6,200.00 6,200.00 AGENDA ITEM NO.� 8/2/05 2 is o5 ESTIMATE FOR MEDIAN DRIP CONVERSION t rr• - a v-i 5 Here is our quote based on the specs given to us.-If you have any questions let me know Prepared Ryan Mcfadgen, Greenscape. ©. c�`D wl 1427# 1 Gallon Myroporum- Parvifolium. $8,600.00 110# 1 Gallon Pyracantha- Tiny Tim. $ 700.00 59# 5 Gallon Flax. $1,100.00 90# Yards Mulch. $3,250.00 1606# Bubblers Irrigation Retrofit to Drip System. $5,800.00 $19,450.00 , K,�J5 -,,-) ivesl d 4-vv t�-. ACENOA ITEM NO. i tA.i vas svvd tv. w JF n :_ SOUTHLAND AQUATIC MANAGEMENT, LLC P.O. BOX 916 SUN CITY, CA 92586 Phone (951) 679-0687 (760) 738 -5564 Submitted: "to: No. 1205-001 Date: 12-605 Sheet No.: 111 Fax (951) 679 -2110 Wort[ to be Ycr[ormed At: Name: City orLAw Elsinore Name: Grand Ave. Median - Drip Conversion Street: 52114. La»gataff Street: SM N. tangstati City: Lake Moore City: l.alte Moore State: CA. 92330 Dare of Pons: 12-645 Pboee: FAX: 951- 471 -1251 Submitted By: Paul R. DeAngelis jWe hereby propose to fumish the materials and perform the labor necessary for the completion oft I install (1 WO Hunter PCB bubblers and check valves with PVC and related phw*jog tied to existing lahnal in iption lines specs, - install (110) l-galloa Pyrwo% Tiny Thu, (1927) 1 gallon Myoponnn Parifolium, (59).5 Gaston Max, (90) Yat S Southland Aquatic Management ,LLC Rmerves the right to sub out all or part of this cootrsct material is guaranteed to be as specified and the above work to be perforined m acconjw= with the drawing and M itred for above work and completion within a substantial work manlike manner for tht sum of- with payment to be made as follows: l0 % Down -Net 101 %2 % Servive charge monthly after Respectfully Submitted: Paul R DeAngelis, President Southlsud Aquatic Management, LLC Note: This proposal may be withdrawn by us if not accepted within thirty (30) days. alteration or devio m trop above opceBcatim inv*hM% cstra coat, will be ezxwed only upon vffMm ordem and wM berme as extra e and abowe the CstiMOr- All ;grsements upon strikes. secideats or delays bcyrnd ow control. Omw to eery Ere, tornado and awry wmurmwe upon above w mk_ Wa t weds Compr„sa m sod public LL*&y IwA%= a on above w wk to be fAcm =4 br Souddaad A wo mt. LLC ACCEPTANCE OF PROPOSAL The above prices, specifications and conditions arc satisfactory and are hereby accepts& You are authorized to do the work as specified Payment will be trade as outlined above. Signature: Signature: Dater AGENDA ITEM NO. PACE City of Lake Elsinore 2004 -2009 Capital Improvement Program Project Description Project ID No.: GEN -0007 Project Number: Project Type: Landscape Installation in the Grand Avenue Median description: In an effort to complete street cross - sections to City Standards, this project will have landscaping installed with the median construction. Location: Grand Avenue between Lincoln Street and Broadway Street Funding; Source Actual to Date Actual 04/05 05/06 06/07 07/08 08/09 Total Design $8,000 $8,000 Env. Permit 0 0 R/W 0 0 Admin $1,500 $1,500 Transplant 1 $38,000 1 1 $38,000 1 Contingency $2,500 $2,500 94 AGENDA ITEM NO. H PAO`�_OF__� Actual 04/05 05/06 06/07 07/08 08/09 Total Design $8,000 $8,000 Env. Permit 0 0 R/W 0 0 Admin $1,500 $1,500 Transplant 1 $38,000 1 1 $38,000 1 Contingency $2,500 $2,500 94 AGENDA ITEM NO. H PAO`�_OF__� Wondscaping 4::. fill L r — ' i 4. 1 ' i • v . Landscaping L- :,' �•_� r - +- ..! - -'- - - -, f -A - {t�!} �- }-t F �1 F \ 1 1 `—{ '' t 1, L' vt c "• -1 } ;t-- L I –__ r i- t. --f- j r% !•:- �� /� ji \�' - i��':;`` t '�` ��� �__ _TT ---1 �_� f— --� F-'•- -."j-- �-_{ -°r -Tai.. QLJ -ice � - �q.w.aJaw a.aa.uinsN• ...a�w -� { �J_ �' -- =--• I A l � -- =i=ce -� =�.f LANDSCAPING GRAND AVENUE MEDIAN ' PROJECT ID NUMBER: GEN-0007 oma Of taka Elsinore 130 S Main PROJECT NUMBER: Daft no take Emmm. CA 92530 N Hasa.,.rsa.Ce .s. maws (Y04) 674.3124 pb oru. aft cu www.bke•eWnore.org '°aniNid17 , PA02 (}F•_,_ CITY OF LAKE ELSINORE REPORT TO CITY COUNCIL TO: MAYOR AND CITY COUNCIL FROM: RON HEWISON, CHAIRMAN DATE: JANUARY 10, 2006 SUBJECT: PSAC RECOMMENDATION FOR STRICTER ORDINANCE FOR HOME PARTIES (LEMC CHAPTER 9.42, SECTION 9.42.010 ET SEQ, "USE OF POLICE AT LARGE PARTIES OR OTHER ACTIVITIES ") BACKGROUND This is a recommendation by the Public Safety Advisory Commission to revise LEMC Chapter 9.42, section 9.42.010 et seq "Use of Police at Large Parties or Other Activities" to toughen the existing enforcement provisions. DISCUSSION On June 8, 2005, the PSAC discussed the need for revising the City's existing ordinance regarding stricter enforcement of home parties following a local incident involving the use of firearms and a fatal shooting during a home party incident. A Lake Elsinore citizen informed the PSAC that home parties were still occurring at the subject address, causing neighbors to be uneasy about their safety. Commissioner Hewison cited the City of Corona as a good example of a proactive ordinance. Police Chief Fetherolf responded that forward leaning language clearly established the intent of the legislative body and would better support the Police Department with enforcement. It was stated that the City Attorney and Police Chief would research other examples. The City Attorney informed the PSAC that this task could be combined with other needed Code revisions broadly encompassing special events. On December 14, the PSAC revisited this item under `old business' and approved a recommendation to the City Council to expedite the revision and adoption of stricter language for LEMC Chapter 9.42, section 9.42.010 et seq (attached). AGENDA ITEM NO. PAGE -t- OF M 1* . FISCAL IMPACT None. RECOMMENDATION Approve PSAC recommendation and direct the City Attorney to prepare the revised Ordinance language for stricter enforcement of home parties for future Council consideration. PREPARED BY: MARK DENNIS, INFORMATION /COMMUNICATIONS MANAGER APPROVED FOR AGENDA BY: C MANAGER'S AGENDA ITEM NO PAGE 2- OF 9.40.010 PUBLIC PEACE, MORALS AND WELFARE Chapter 9.40 DISORDERLY CONDUCT* Sections: 9.40.010 Persons congregating on street 9.42.020 or sidewalk. 9.40.020 Unruly conduct in place of pub- 9.42.030 lic assembly. 9.40.030 Damaging public property. 9.40.010 Persons congregating on street or sidewalk. It is unlawful for any two or more persons to collect upon any street, sidewalk or other public place for any un- lawful purpose, or to refuse to disperse or move away when requested to do so by the Chief of Police or any policeman. (Ord. 321 § 8, 1949) 9.40,020 Unruly conduct in place of pub- lic assembly. It is unlawful for any person in any theater, opera house, or any place of public assembly to, by any unruly or bois- terous conduct or by whistling, stamping, or loud talking, or by any other act or thing, tend to disturb any such meeting or performance. (Ord. 321 § 9, 1949) 9.40.030 Damaging public property. It is unlawful for any person to cut, mark, burn, tear down, deface, remove, or de- stroy any building or any portion of any building, walk, bridge, fence, tree, plant, shrub, ornamental structure or object, post, pipe, stone, wire, or any other prop- erty included herein, belonging to or used by the City or located on, above, under or along its streets, sidewalks, parks, or pub- lic places or buildings, without lawful au- thority. (Ord. 321 § 10, 1949) vFor statutory provisions on disturbances, see Penal Code §403 et seq.; for provisions on disturbing the peace, see Penal Code } 415; for provisions on disorderly conduct, see Penal Code § 647. 9.42.010 cm Chapter 9.42 USE OF POLICE SERVICES AT LARGE PARTIES OR OTHER ACTIVITIES Sections: 9.42.010 Definitions. 9.42.020 Initial police responses to large parties, gatherings or events. 9.42.030 Subsequent police responses to large parties, gatherings or events; liability. 9.42.040 Cost; collection. 9.42.050 Administrative appeal. 9.42.010 Definitions. The following words, phrases and terms as used in this chapter shall have the meaning as indicated below: A. "Large party, gathering or event" means a group of persons who have as- sembled or are assembling for a social occasion or for a social activity. B. "Host" means a person who owns ­./ the property where the party, gathering or event takes place; the person in charge of the premises and/or the person who or- ganizes the event. If the host is a minor, then the parents or guardians of that mi- nor will be jointly and severally liable for the fee incurred for police services. C. "Police services fee" means the cost to the City of any special security assign- ment. Such fee may be either a flat fee of two hundred fifty dollars or an itemized fee based on, but not limited to, salaries of po- lice officers while responding to or re- maining_ at the party, gathering or event, the pro rata cost of equipment, the cost of repairing City equipment and the prop- erty, the cost of any medical treatment of injured police officers. D. "Special security assignment" means the assignment of police officers, services and equipment during a second or subsequent response to the party, 909 0 Rev. Ord. Supp. 4/97 9.42.020 LAKE ELSINORE CODE 9.42.050 gathering or event after the distribution of a written notice to the host that a fee may be imposed for costs incurred by the City for any subsequent police response. (Ord. 1020 § 9.42.010, 1966) 9.42.020 Initial police responses to large parties, gatherings or events. When any police officer responds to any large party, gathering or event, and the police officer determines that there is a threat to the public peace, health, safety, or general welfare, the police officer shall issue a written notice to the host or hosts, that a subsequent response to that same location or address within a thirty day period, such response or responses shall be deemed a special security assignment rendered to provide security and order on behalf of the party, gathering or event and that the host ,--nay be liable for a police service fee as de- .ned in this chapter. (Ord. 1020 § 9.42.020, 1996) 9.42.030 Subsequent police responses to large parties, gatherings or events; liability. If after a written notice is issued pursuant to Section 9.42.020, a subsequent police response or responses is necessary to the same location or address within a 'thirty day period, such response or re- sponses shall be deemed a special security assignment. Persons previously warned shall be jointly and severally liable for a police services fee as defined in this chapter. The amount of such fee shall be a debt owed to the City by the person or persons, warned, and if he or she is a minor, the debt shall be owed by his or her parents or guardians. In no event shall the fee be more than one thousand dollars. �-- The City reserves its rights to seek reim- ssements for actual costs exceeding one 910 thousand dollars through other legal remedies or procedures. The subsequent response may also re- sult in the arrest and/or citation of viola- tors of the State penal code or other regulations, ordinances or laws. (Ord. 1020 § 9.42.030, 1996) 9.42.040 Cost; collection. The City Manager or his designee shall notify the Finance Director in writing of the performance of special security assignment, of the name and address of the responsible person or persons, the date and time of the incident, the services performed, the costs thereof and such other information as may be required. The Finance Director Treasurer shall thereafter cause appropriate billings to be made. In the event billings are not paid when due, the Finance Director ' shall have the authority to collect said. billings through a small claims action or, based upon action of the City Council after no- ticed hearing, place the delinquent billing on the equalized tax roll for collection in the same manner as property taxes. (Ord. 1020 § 9.42.040, 1996) 9.42.050 Administrative appeal. An administrative appeal of a police services fee may be made to the City Manager or his designee within ten days from the date of mailing of the billing and grounds for the appeal. (Ord. 1020 § 9.42.050, 1996) Rev. Ord. Supp. 4/97 CITY OF LAKE ELSINORE REPORT TO CITY COUNCIL TO: MAYOR AND CITY COUNCIL FROM: BOB BRADY, CITY MANAGER DATE: JANUARY 10, 2006 SUBJECT: PURCHASE AUTHORIZATION TO REPLACE OBSOLETE COMPUTERS AT SENIOR CENTER, CUSTOMER COUNTER, AND CITY HALL BACKGROUND A stated goal of FY 2005 -06 IT budget is replacing old office PCs over a three -year cycle. Eleven (11) are scheduled to be replaced this year. Eight (8) of the eleven (11) replaced PCs will be transferred to the Senior Center PC Lab to replace their obsolete office PCs. This transfer will enable the Senior Center PC Lab to advance their computer technology curriculum and be a training resource for City staff. DISCUSSION This is the fifth year of a replacement cycle that has enabled the City to meet its goal of standardizing on a common PC platform to lower our total cost of ownership and maintenance. Previously, the City Council approved standardizing on the Dell Optiplex product line to accomplish this goal. Dell's 3 -year warranty service also helps keep the City's cost of repairs and maintenance down. FISCAL IMPACT Consistent with the City's practice of making information technology purchases under the California Municipal Awards Schedule (CMAS), Dell PCs qualify for purchase under the state and local government CMAS or Western States Contract Alliance (WSCA) pricing schedule. The unit cost of these PCs is consistent with previous Dell PC purchases. Both CMAS and WSCA pricing ensures competitive pricing at Government Services Administration (GSA) rates. •.0 AGENDA ITEM NO . .o PAGE = OF _ _ k This purchase is exempt from the City's purchasing policy requiring informal bids because it is in the best interest of the City to use CMAS or WSCA government pricing for information technology-purchases. Sufficient funding is available through internal transfer of FY 2005 -06 IT Department funds. Source Model Quote Dell Dell Optiplex GX 170L $18,128 RECOMMENDATION It is determined to be in the best interest of the City to waive the formal bidding process and authorize the City Manager to sign and issue a purchase order to Dell Computer, Inc. for replacing obsolete computer equipment. PREPARED BY: MARK DENNIS, INFORMATION /COMMUNICATIONS MANAGER APPROVED FOR AGENDA BY: CI MANAGER'S OFFI AGENDA ITEM NO. PAGE Z OF DELL Date: 1/5/06 9:37:02 AM QUOTE #: Customer #: Contract #: CustomerAgreement #: Quote Date: Customer Name: Pagel of 2 QUOTATION 267071308 1471052 61140 3 -94 -70 -0012 115/06 CITY OF LAKE ELSINORE TOTAL QUOTE AMOUNT: $1,572.17 SYSTEM PRICE: $1,4x9 67 G GROUP TOTAL: $1,459.67 Product Subtotal: $1,451.67 $590.74 Processor: N Tax: $112.50 Memory: 1 1.OGB,Non- ECC,40OMHz DDR 1x1GB,Dell OptlPlex 170L (311 -4529) $ State Environmental Fee: $8.00 USB Enhanced Multimedia Keyboard,English,Deli OptiPlex (310 -6547) $ $22.32 Shipping & Handling: $0.00 $250.13 Video Card: I Shipping Method: Ground Total Number of System Groups: 1 GROUP: 1 Q QUANTITY: 1 S SYSTEM PRICE: $1,4x9 67 G GROUP TOTAL: $1,459.67 Base Unit: O OptiPlex 170L,MicroTower 3.20GHz,Pentium 4,1 MB Cache 800 Front Side Bus (221 -4217) $ $590.74 Processor: N NTFS File System,Factory Install (4203699) Memory: 1 1.OGB,Non- ECC,40OMHz DDR 1x1GB,Dell OptlPlex 170L (311 -4529) $ $168.57 Keyboard: U USB Enhanced Multimedia Keyboard,English,Deli OptiPlex (310 -6547) $ $22.32 Monitor: D Dell UltraSharp 1704FPT Flat Panel with Height Adjustable Stand,17.0 Inch VIS,OptiPlex $ $250.13 Video Card: I Integrated Video - Intel DVMT,DeII OptiPlex GX270 or GX280 (320 -0428) Hard Drive: 8 80GB EIDE 720ORPM, OptIPlex 170L (341 -0420) $ $6.95 Floppy Disk Drive: 3 3.5 inch, 1.44MB, Floppy DriveOptiPlex WOL (341.0426) $ $14.63 Operating System: W Windows XP Professional Service Pack 2,with Media ,DellOptiPlex,English,Factory Install $ $4618 Mouse: D Deli USB 2- Button Entry Mouse with Scroll for OptiPlex (310 -5202) NIC: I Integrated Intel 10110OMb LOM w/ remote wake -up (430 -0554) CD -ROM or DVD -ROM Drive: 1 16X DVD + / -RW and 16X DVD with Sonic Record Nowl Deluxe plus CyberLink $ $83.89 Sound Card: I Integrated AC97 Audio,OptiPlex (313 -8170) Speakers: I Internal Chassis Speaker Option,Optiplex 170L (313 -2333) $ $6.95 Documentation Diskette: R Resource CD contains Diagnostics and Drivers for Dell OptiPlex Systems (313 -7168) Factory Installed Software: E Energy Star Labeling for OptiPlex (if applicable) (310 -4721) Software Disk Two: O OpenManage Client Instrumentation,Dell OptiPlex Factory Install (420 -4296) Service: T Type 3 Contract - Next Business Day Parts & Labor On -Site Response Initial Year (900 - 6930) Service: T Type 3 Contract - Next Business Day Parts and Labor On -Site Response, 2YR Extended (960 -2402) Service: T Thank You for buying Dell (983 -2207) Service: P Please visit WWW.Dell.COM (983 -2217) Dirline: T Type 14 - Keep Your Hard Drive, 3 Years (960 -2597) Dirline: G Gold Technical Support ServiceOptiplex, 3 Years, 1-866-876-3355 (DELL) (902 -4882) Installation: A Asset Recovery, Program Managed, QTY 1 Value Recover, 4YR (981 -5218) Support: A Asset Recovery, Program Managed, QTY 1 Value Recover, 4YR (981 -5218) file: //C:\ Documents %20and %20S ettings \tsoto \Local %20Settings \Temporary %20Intemet %... 1/5/2006 Page 2 of 2 Misc• ' Mouse Pad (310 -3559) I $2.31 Microsoft Office 2003 Professional Edition for Opt!Plex,English (412-0468) 1$259.00 SALES REP: Jose Irizarry PHONE: 8008793355 Email Address: jose_irizarry@dell.com Phone Ext: 7247758 For shipments of certain products to California, a State Environmental Fee of up to $10 per item has been added to your quote. For your convenience, your sales representative, quote number and customer number have been included to provide you with faster service when you are ready to place your order. Orders may be faxed to the attention of your sales representative to 1- 866 - 8440532. You may also place your order online at www.dell.com /quote Unless you have a separate agreement with Dell, the terms and conditions found at http: / /ftpbox.us. dell. com /slg /resellers /resellertcs.htm shall govern the sale and resale of the Products and Services referenced in this quotation. Prices and tax rates are valid in the U.S. only and are subject to change. * *Sales /use tax is a destination charge, i.e. based on the "ship to" address on your purchase order. Please indicate your taxability status on your PO. if exempt, please fax exemption certificate to Dell Tax Department at 888 - 863 -8778, referencing your customer number. If you have any questions regarding tax please call 866 - 433 -9019. ** All product and pricing information is based on latest information available. Subject to change without notice or obligation. LCD panels in Dell products contain mercury, please dispose properly. Please contact Dell Financial Services' Asset Recovery Services group for EPA compliant disposal options at US_Dell_ARS_Requests@dell.com. Minimum quantities may apply. Shipments to California: For certain products, a State Environmental Fee Of Up to $10 per item may be applied to your invoice as early as Jan 1, 2005. Prices in your cart do not reflect this fee. More Info: or refer to URL www.dell.com /environmentalfee IZ C-V file: //C:\ Documents %20and %20Settings \tsoto \Local %20Settings \Temporary%20Internet %... 1/5/2006 DELL Date: 1/3/061:32:14 PM QUOTE #: Customer #: Contract #: CustomerAgreement #: Quote Date: Customer Name: Pagel of 2 QUOTATION 266607139 1471052 N39913654 NASPOIWSCA # A63307 1/3/06 CITY OF LAKE ELSINORE TOTAL QUOTE AMOUNT: $6,475.46 SYSTEM PRICE: $1,503.00 GROUP TOTAL: $6,012.00 Product Subtotal: $5,980.00 Base Unit: OptiPlex 170L,MicroTower 3.20GHz,Pentium 4,1MB Cache 800 Front Side Bus (221 -4217) Tax: $463.46 Memory: 1.OGB,Non- ECC,40OMHz DDR 1x1GB,Dell OptiPlex 170L (311 -4529) State Environmental Fee: $32.00 Monitor: Dell UltraSharp 1704FPT Flat Panel with Height Adjustable Stand,17.0 Inch VIS,Opt!Plex Latitude (320 -4271) Shipping & Handling: $0.00 Hard Drive: 80GB EIDE 720ORPM, OptiPlex 170L (341 -0420) Shipping Method: Ground Total Number of System Groups: 1 GROUP: 1 QUANTITY: 4 SYSTEM PRICE: $1,503.00 GROUP TOTAL: $6,012.00 Base Unit: OptiPlex 170L,MicroTower 3.20GHz,Pentium 4,1MB Cache 800 Front Side Bus (221 -4217) Processor: NTFS File System,Factory Install (420 -3699) Memory: 1.OGB,Non- ECC,40OMHz DDR 1x1GB,Dell OptiPlex 170L (311 -4529) Keyboard: USB Enhanced Multimedia Keyboard,English,Dell OptiPlex (310 -6547) Monitor: Dell UltraSharp 1704FPT Flat Panel with Height Adjustable Stand,17.0 Inch VIS,Opt!Plex Latitude (320 -4271) Video Card: Integrated Video - Intel DVMT,Dell OptiPlex GX270 or GX280 (320 -0428) Hard Drive: 80GB EIDE 720ORPM, OptiPlex 170L (341 -0420) Floppy Disk Drive: 3.5 inch, 1.44MB, Floppy DriveOptiPlex 170L (341 -0426) Operating System: Windows XP Professional Service Pack 2,with Media ,DellOptiPlex,English,Factory Install (420- 4850) Mouse: Dell USB 2 -Button Entry Mouse with Scroll for OptiPlex (310 -5202) NIC: Integrated Intel 10 /10OMb LOM w/ remote wake -up (430 -0554) CD-ROM or DVD -ROM Drive: 48X32 CDRW/DVD Combo, with DVDPlayback,Dell OptiPlex 170L Small Minitower (313 -2299) Sound Card: Integrated AC97 Audio,OptiPlex (313 -8170) Speakers: Internal Chassis Speaker Option,Optiplex 170L (313 -2333) Documentation Diskette: No Resource CD for Dell Optiplex,Precision and Latitude Systems (3133673) Factory Installed Software: Energy Star Labeling for OptiPlex (if applicable) (310 -4721) Service: Type 3 Contract - Next Business Day Parts & Labor On-Site Response Initial Year (900 -6930) Service: Type 3 Contract - Next Business Day Parts and Labor On -Site Response, 2YR Extended (960- 2402) Service: Thank You for buying Dell (983 -2207) Service: Please visit WWW.Dell.COM (983 -2217) Dirline: Type 14 - Keep Your Hard Drive, 3 Years (960 -2597) Dirline: Gold Technical Support ServiceOptiplex, 3 Years, 1-866-876-3355 (DELL) (902 -4882) Installation: Asset Recovery, Program Managed, QTY 1 Value Recover, 4YR (981 -5218) Misc: Mouse Pad (310 -3559) Microsoft Office 2003 Professional Edition for Opt!Plex,English (412 -0468) firo {.wI.X 41XXX�WY �iXI+WiXX� file: //C:\ Documents% 20and% 20Settings \tsoto\Local %20Settings \Temporary %20Internet %... 1/3/2006 ,-- DELL ,O-"\ Date: 12/30/05 1:31:05 PM QUOTE #: Customer #: Contract #: CustomerAgreement #: Quote Date: Customer Name: Page 1 of 2 QUOTATION 266085135 1471052 N39913654 NASPOJWSCA # A63307 12/30/05 CITY OF LAKE ELSINORE TOTAL QUOTE AMOUNT: $6,718.99 SYSTEM PRICE: $1,559.50 GROUP TOTAL: $6,238.00 Product Subtotal: $6,206.00 Base Unit: OptiPlex 170L,MicroTower 3.20GHz,Pentium 4,1MB Cache 800 Front Side Bus (221-1217) Tax: $480.99 Memory: 1.OGB,Non- ECC,40OMHz DDR 1x1GB,Deil OptiPlex 170L (311 -4529) State Environmental Fee: $32.00 Monitor: Dell UltraSharp 1704FPT Flat Panel with Height Adjustable Stand,17.0 Inch VIS,OptiPlex Latitude (320 -4271) Shipping & Handling: $0.00 Hard Drive: 8OGB EIDE 720ORPM, OptiPlex 170L (341 -0420) Shipping Method: Ground Total Number of System Groups: 1 GROUP: 1 QUANTITY: 4 SYSTEM PRICE: $1,559.50 GROUP TOTAL: $6,238.00 Base Unit: OptiPlex 170L,MicroTower 3.20GHz,Pentium 4,1MB Cache 800 Front Side Bus (221-1217) Processor: NTFS File System,Factory Install (420 -3699) Memory: 1.OGB,Non- ECC,40OMHz DDR 1x1GB,Deil OptiPlex 170L (311 -4529) Keyboard: USB Enhanced Multimedia Keyboard,Engiish,Dell OptiPlex (310 -6547) Monitor: Dell UltraSharp 1704FPT Flat Panel with Height Adjustable Stand,17.0 Inch VIS,OptiPlex Latitude (320 -4271) Video Card: Integrated Video - Intel DVMT,Dell OptiPlex GX270 or GX280 (320 -0428) Hard Drive: 8OGB EIDE 720ORPM, OptiPlex 170L (341 -0420) Floppy Disk Drive: 3.5 inch,1.44MB, Floppy DriveOptiPlex 170L (341-0426) Operating System: Windows XP Professional Service Pack 2,with Media ,DeilOptiPlex,English,Factory Install (420 - 4850) Mouse: Dell USB 2 -Button Optical Mouse with Scroll,OptiPlex 170L (310 -4827) NIC: Integrated Intel 1 Oil 00Mb LOM w/ remote wake -up (430 -0554) CD -ROM or DVD -ROM Drive: 48X32 CDRW /DVD Combo, with DVDPlayback,Dell OptiPlex 170L Small Minitower (313 -2299) Sound Card: Integrated AC97 Audio,OptiPlex (313 -8170) Speakers: Internal Chassis Speaker Option,Optiplex 170L (313 -2333) Documentation Diskette: No Resource CD for Dell Optiplex,Precision and Latitude Systems (3133673) Factory Installed Software: Energy Star Labeling for OptiPlex (if applicable) (310 -4721) Software Disk Two: OpenManage Client Instrumentation,Deil OptiPlex Factory Install (420 -4296) Service: Type 3 Contract - Next Business Day Parts & Labor On-Site Response Initial Year (900 -6930) Service: Type 3 Contract - Next Business Day Parts and Labor On-Site Response, 2YR Extended (960 - 2402) Service: Thank You for buying Dell (983 -2207) Service: Please visit WWW.Dell.COM (983 -2217) Dirline: Type 14 - Keep Your Hard Drive, 3 Years (960 -2597) Dirline: Gold Technical Support ServiceOptiplex, 3 Years, 1-866-876-3355 (DELL) (902 -4882) Installation: Asset Recovery, Program Managed, QTY 1 Value Recover, 4YR (981 -5218) Misc: Mouse Pad (310 -3559) Microsoft Office 2003 Professional Edition for OptiPlex,English (412 -0468) LF file://C:\ Documents %20and %20Settings \tsoto\ Local% 20Settings \Temporary%20Internet... 5 Page 2 of 2 SALES REP: Jose Irizarry PHONE: 8008793355 Email Address: jose_irizarry@dell.com Phone Ext: 7247758 For shipments of certain products to California, a State Environmental Fee of up to $10 per item has been added to your quote. For your convenience, your sales representative, quote number and customer number have been included to provide you with faster service when you are ready to place your order. Orders may be faxed to the attention of your sales representative to 1- 866 - 844 -0532. You may also place your order online at www.dell.com /quote Unless you have a separate agreement with Dell, the terms and conditions found at http: /tftpbox.us. dell. com /sigiresellers /resellertcs.htm shall govern the sale and resale of the Products and Services referenced in this quotation. Prices and tax rates are valid in the U.S. only and are subject to change. **Sa /es/use tax is a destination charge, i.e, based on the "ship to" address on your purchase order. Please indicate your taxability status on your PO. if exempt, please fax exemption certificate to Dell Tax Department at 888 - 863 -8778, referencing your customer number. If you have any questions regarding tax please call 866- 433 -9019. ** All product and pricing information is based on latest information available. Subject to change without notice or obligation. LCD panels in Dell products contain mercury, please dispose properly. Please contact Dell Financial Services' Asset Recovery Services group for EPA compliant disposal options at US_Dell_ARS_Requests@dell.com. Minimum quantities may apply. Shipments to California: For certain products, a State Environmental Fee Of Up to $10 per item may be applied to your invoice as early as Jan 1, 2005. Prices in your cart do not reflect this fee. More Info: or refer to URL www.dell.com /environmentalfee file: / /C:\ Documents %20and %20Settings \tsoto\ Local %20Settings \Temporary%20Internet... 12/30/2005 CITY OF LAKE ELSINORE REPORT TO CITY COUNCIL TO: MAYOR AND CITY COUNCIL FROM: ROBERT A. BRADY, CITY MANAGER DATE: JANUARY 109 2006 SUBJECT: FEE DEPOSIT AND REIMBURSEMENT AGREEMENT WITH CORMAN LEIGH -TOZAI ELSINORE, LLC BACKGROUND On March 9, 2004, City Council approved the tentative tract maps for the Viscaya development. The City's finance team has met with the developer and their financial consultants several times in the last two years to discuss the formation of a Community Facilities District for the project. The previous CFD was abandoned and restarted at the developers request. The developer plans to build 168 single family homes. DISCUSSION Deposit and Reimbursement Agreement According to the City's policy on forming CFD's and in according to the Mello - Roos Community Facilities Act of 1982, the City Council may approve an agreement to receive a deposit for the cost incurred by the City in creating the CFD and issuing special tax bonds. The developer will submit a new deposit of $65,000 per the agreement. Fee Deposit and Reimbursement Agreements Development costs are only eligible for reimbursement with CFD funding if paid after the bonds are issued. Given the nature of the proposed reimbursable costs and the timing of when bonds will be issued, two Fee Deposit and Reimbursement agreement is necessary for the fees to be reimbursed from the CFD bond proceeds: AGENDA IT IAA NO- REPORT TO CITY COUNCIL JANUARY 10, 2006 r..r PAGE 2 City and Corman Leigh — Under the agreement, the City will hold as a fee deposit, the equivalent amount of the developer fees. The City will be paid the developer fees from the future bond proceeds and the deposit collected from the developer would be reimbursed to the developer. If the bonds do not go forward, the fee deposit will be released to the City. City, Corman Leigh and EVMWD — Since EVMWD is participating in the proposed CFD, a Fee Deposit and Reimbursement Agreement between the City, EVMWD and the Developer is necessary. The agreement before you for approval relates to EVMWD fees. Under the agreement, the City will hold as a fee deposit, the equivalent amount of the developer fees paid for EVMWD fees. EVMWD will be paid the fees from the future bond proceeds and the deposit collected from the developer will be reimbursed to the developer. If the bonds do not, go forward, the fee deposit will be released to EVMWD. FISCAL IMPACT The administrative cost to the City will be paid by the $65,000 deposit. RECOMMENDATION It is recommended that City Council approve Resolution 2006 — 0;2 approving the Deposit and Reimbursement Agreement and the two Fee Deposit and Reimbursement Agreements PREPARED BY: APPROVED FOR AGENDA BY: MATT N. PRESSE DIRECTOR OF A16MINISTRATIVE SERVICES / il d1L MANAGER'S OFFI ,-..r AGENDA ITEM N0. PAGE a OF� 1^1 / ,— City of Lake Elsinore Map PROPOSED BOUNDARY OF COMMUNITY FACILITIES DISTRICT OF THE CITY OF LAKE ELSINORE (VISCAYA) COUNTY OF RIVERSIDE, STATE OF CALIFORNIA CtrM RADTTTR L11120021 C, BD.DD 3D.,, 03.w .91 OvB9 a9 8.95 R3W'990) O , 85.W 07 nTE BDIRIpARV DF THE dsTwcr OORICIOES WITH THE e011N0ARr DF TRACt J20oB Ex0.uON6 Lois 199.170.A.AA.r AND Z. SCALE: 1'200' V"NHITY MAP NO SCALE LECW -� DISTIBCT BOUNDARY FILED N THE OFFICE OF THE CITY CLOW OF THE CITY OF LAKE R9NORE THIS DAY OF _BUYS. CITY CUM OF THE CITY OF LAKE I TRREBY CERTIFY THAT TIE WITUE/ YAP SNOWING THE PROPOSED BCUIDARLS OF COMM1RWTY FACr1KS WSRRC7 N0. 20W-2 (NSCAYA), CITY OF LAKE ELSNORE COUNTY OT RIWRSIOL STATE OF CAUFOIWRA WAS APPROVED BY THE CITY COUNCIL, OF THE CRY AK OF LE ELSNOW. AT A RENEARLY SCHEDULED NEETNG THEREOF. HELD ON THE DAY K 2005. BY ITS RE50.URON NP FILED T9S _ DAY OF 2005 AT THE HOUR OF O'0.0CT(_.M. W BOOK_ OF MAPS OF ASSESSMENT AND COMML"TY FACNTIES DISTRICTS PACE NOS._TWtOUtlL_ AS NSTRUIOIT NO W THE OFFICE OF THE COUNTY RECORDER N THE COUNTY OF WkfXSIOE STATE OF CAUT N L& COUNTY COUNTY OF RIVERSIDE FEE 1 REVERENCE THE NvERSDE COUNTY ASSESSOR '5 MAPS FOR A OETAAED DESCRIPTION OF PAR= LINES AND DBIEH90NS AGENDA ITEM NO_ PACE�O RESOLUTION NO. 2006- OoL RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE APPROVING A DEPOSIT AND REIMBURSEMENT AGREEMENT AND TWO FEE DEPOSIT AND REIMBURSEMENT AGREEMENTS WHEREAS, the City Council (the "Council ") of the City of Lake Elsinore (the "City ") intends to initiate proceedings to form City of Lake Elsinore Community Facilities District No. 2006 -2 (Viscaya) (the "CFD ") pursuant to the Mello -Roos Community Facilities Act of 1982, as amended (the "Act "); and WHEREAS, Section 533114.9 of the Act provides that, at any time either before or after the formation of a community facilities district, the legislative body may accept advances of funds from any source, including, but not limited to, private persons or private entities and may provide, by resolution, for the use of those funds for any authorized purpose, including, but not limited to, paying any cost incurred by the local agency in creating a community facilities district (including the issuance of bonds thereby); and WHEREAS, the City and the Developer desire to enter into an agreement in accordance with Section 53314.9 of the Act in order to provide for the advancement of funds by the Developer to be used to pay costs incurred in connection with the formation of the CFD and issuance of special tax bonds for the CFD (the "Bonds "), and to provide for the reimbursement to the Developer of such funds advanced, without interest, from the proceeds of any Bonds; and WHEREAS, the developer within the proposed CFD (the "Developer ") intends to make a security deposit with the City and Elsinore Valley Municipal Water District ( "EVMWD ") to cover certain City and EVMWD capital fees, which are eligible for refund upon the sale of bonds and the payment of such City and EVMWD capital fees from the proceeds of such bonds; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS: SECTION 1. The City Council hereby approves the Deposit and Reimbursement Agreement in substantially the form presented to the City Council at this meeting. The Mayor, the City Manager and the Director of Administrative 45644524.2 AGENDA ITEM NO. PACE 4/ '..A" .-� Services are hereby authorized to execute the Deposit and Reimbursement Agreement with such revisions, amendments and completions as shall be approved by the officer executing the same, such approval to be conclusively evidenced by the execution and delivery thereof. SECTION 2. The City Council hereby approves the Fee Deposit and Reimbursement Agreements in substantially the forms presented to the City Council at this meeting. The Mayor, the City Manager and the Director of Administrative Services are hereby authorized to execute the Fee Deposit and Reimbursement Agreements with such revisions, amendments and completions as shall be approved by the officer executing the same, such approval to be conclusively evidenced by the execution and delivery thereof. SECTION 3. This Resolution shall take effect from and after the date of its passage and adoption. 45644524.2 AGENDA ITEM N0. _ PAGE S 0 PASSED, APPROVED AND ADOPTED this day of 2006. AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: ABSTAIN: COUNCILMEMBERS: ATTEST: Fredrick Ray, City Clerk City of Lake Elsinore APPROVED AS TO FORM: Barbara Zeid Leibold, City Attorney City of Lake Elsinore 45644524.2 Robert E. Magee, Mayor City of Lake Elsinore AGENDA ITEM NO. PA�_OF,� 10— STATE OF CALIFORNIA } COUNTY OF RIVERSIDE } SS: CITY OF LAKE ELSINORE } I, FREDERICK RAY, CITY CLERK OF THE CITY OF LAKE ELSINORE, DO HEREBY CERTIFY that the foregoing Resolution duly adopted by the City Council of the City of Lake Elsinore at a regular meeting of said Council on the day of , 2006, and that it was so adopted by the following vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: ABSTAIN: COUNCILMEMBERS: FREDERICK RAY, CITY CLERK CITY OF LAKE ELSINORE (SEAL) 45696489.1 1 AGENDA i L PAGE DEPOSIT AND REIMBURSEMENT AGREEMENT THIS DEPOSIT AND REIMBURSEMENT AGREEMENT (this "Deposit Agreement "), is made and entered into as of January 10, 2005, by and between the City of Lake Elsinore, California (the "City ") and Corman Leigh -Tozai Elsinore, LLC, a California limited liability company (the "Owner "). RECITALS WHEREAS, the City has determined to initiate proceedings to create a community facilities district designated "City of Lake Elsinore Community Facilities District No. 2006 -2 (Viscaya) (the "Community Facilities District ") under the Mello -Roos Community Facilities Act of 1982 (the "Act "); WHEREAS, Owner is the owner of the real property within the proposed Community Facilities District; WHEREAS, in accordance with City's policy regarding use of the Act, the Owner is required to compensate the City for all costs incurred in the formation of the Community Facilities District and issuance of bonds for the Community. Facilities District; WHEREAS, Section 533114.9 of the Act provides that, at any time either before or after the formation of a community facilities district, the legislative body may accept advances of funds from any source, including, but not limited to, private persons or private entities and may provide, by resolution, for the use of those funds for any authorized purpose, including, but not limited to, paying any cost incurred by the local agency in creating a community facilities district (including the issuance of bonds thereby); WHEREAS, Section 53314.9 of the Act further provides that the legislative body may enter into an agreement, by resolution, with the person or entity advancing the funds, to repay all or a portion of the funds advanced, as determined by the legislative body, with or without interest under all of the following conditions: (a) the proposal to repay the funds is included in both the resolution of intention to establish a community facilities district adopted pursuant to Section 53521 of the Act and in the resolution of formation to establish the community facilities district pursuant to Section 53325.1 of the Act (including the issuance of bonds thereby), (b) any proposed special tax is approved by the qualified electors of the community facilities district pursuant to the Act, and (c) any agreement shall specify that if the qualified electors of the community facilities district do not approve the proposed special tax, the local agency shall return any funds which have not been committed for any .authorized purpose by the time of the election to the person or entity advancing the funds; and WHEREAS, the City and the Owner desire to enter into this Deposit Agreement in accordance with Section 53314.9 of the Act in order to provide for the advancement of funds by the Owner to be used to pay costs incurred in connection with the formation of the Community Facilities District and issuance of special tax bonds for the Community Facilities 45441059.2 AGENDA ITEM NO. PAGE _.Z OF�.2,_ �- District (the "Bonds "), and to provide for the reimbursement to the Owner of such funds advanced, without interest, from the proceeds of any Bonds; NOW, THEREFORE, for and in consideration of the mutual promises and covenants herein contained, the parties hereto agree as follows: Section 1. The Deposits and Application Thereof. (a) The Owner has previously deposited with the City the amount of $65,000.00 (the "Initial Deposit "). The City, by its execution hereof, acknowledges receipt of, and accepts, the Initial Deposit. (b) The Initial Deposit, together with any subsequent deposit required to be made by the Owner pursuant to the terms hereof (collectively, the "Deposits "), are to be used to pay for any costs incurred for any authorized purpose in connection with the formation of the Community Facilities District and the issuance of the Bonds (other than costs, fees and expenses to be paid out of the proceeds of the Bonds), including, without limitation, (i) the fees and expenses of any consultants to the City employed in connection with the formation of the Community Facilities District and the issuance of the Bonds, including an engineer, special tax consultant, financial advisor, bond counsel and any other consultant deemed necessary or advisable by the City, (ii) the costs of appraisals, market absorption and feasibility studies and other reports deemed necessary or advisable by the City in connection with the formation of the Community Facilities District and issuance of the Bonds, (iii) the costs of publication of notices, preparation and mailing of ballots and other costs related to any hearing, election or other action or proceeding undertaken in connection with the formation of the Community Facilities District and issuance of the Bonds, (iv) reasonable charges for City staff time incurred in connection with the formation of the Community Facilities District and the` issuance of the Bonds by the Community Facilities District, including a reasonable allocation of City overhead expense related thereto, and (v) any and all other actual costs and expenses incurred by the City in connection with the formation of the Community Facilities District and the issuance of the Bonds (collectively, the "Initial Costs "). The City may draw upon the Deposits from time to time to pay the Initial Costs. (c) If, at any time, the unexpended and unencumbered balance of the Deposits is less than $10,000, the City may request, in writing, that the Owner make an additional deposit in an amount estimated to be sufficient, together with any such unexpended and unencumbered balance, to pay for all Initial Costs. The Owner shall make such additional deposit with the City within two weeks of the receipt by the Owner of the City's written request therefor. If the Owner fails to make any such additional deposit within such two week period, the City may cease all work related to the issuance of the Bonds. (d) The Deposits may be commingled with other funds of the City for purposes of investment and safekeeping, but the City shall at all times maintain records as to the expenditure of the Deposits. (e) The City shall provide the Owner with a written monthly summary of expenditures made from the Deposits, and the unexpended balance thereof, within ten business AGENDA ITEM N0. 7 pAGE__5,___OF�� days of receipt of the City of a written request therefor submitted by the Owner. The cost of providing any such summary shall be charged to the Deposits. Ift,,r Section 2. Return of Deposits; Reimbursement. (a) As provided in Section 53314.9 of the Act, the approval by the qualified electors of the Community Facilities District of the proposed special tax to be levied therein is a condition to the repayment to the Owner of the funds advanced by the Owner pursuant hereto. Therefore, if the qualified electors of the Community Facilities District do not approve the proposed special tax to be levied thereon, the City shall have no obligation to repay the Owner any portion of the Deposits expended or encumbered to pay Initial Costs. In accordance with Section 53314.9 of the Act, if the qualified electors of the Community Facilities District do not approve the proposed special tax to be levied therein, the City shall return to the Owner any portion of the Deposits which have not been expended or encumbered to pay Initial Costs by the time of the election on said proposed special tax. (b) If proceedings for the issuance of the Bonds are terminated, the City shall, within ten business days after official action by the City or the Community Facilities District to terminate said proceedings, return the then unexpended and unencumbered portion of the Deposits to the Owner, without interest. (c) If the Bonds are issued by the Community Facilities District, the City shall reimburse the Owner, without interest, for the portion of the Deposits that has been expended or encumbered, said reimbursement to be made within ten business days after the issuance of such Bonds, solely from the proceeds of such Bonds and only to the extent otherwise permitted under the Act. The City shall, within ten business days after the issuance of such Bonds, return the then unexpended and unencumbered portion of the Deposits to the Owner, without interest. Section ,3. Abandonment of Proceedings. The Owner acknowledges and agrees that the issuance of the Bonds shall be in the sole discretion of the Community Facilities District. No provision of this Deposit Agreement shall be construed as an agreement, promise or warranty of the City to issue the Bonds. Section 4. Deposit Agreement Not Debt or Liability of City. As provided in Section 53314.9(b) of the Act, this Deposit Agreement does not constitute a debt or liability of the City, but shall constitute a debt and liability of the Community Facilities District upon its formation. The City shall not be obligated to advance any of its own funds to pay Initial Costs or any other costs incurred in connection with the issuance of the Bonds. No member of the City Council of the City and no officer, employee or agent of the City shall to any extent be personally liable hereunder. Section 5. Notices. Notices, Demands and Communications Between the Parties. Any notices, requests, demands, documents, approvals or disapprovals given or sent under this Deposit Agreement from one Party to another (collectively, "Notices ") may be personally delivered, transmitted by facsimile (FAX) transmission, or deposit with the United States Postal Service for mailing, postage prepaid, to the address of the other Party as stated in this Section, and shall be deemed to have been given or sent at the time of personal delivery or FAX *.Ma, AGENDA ITEM N0. -7 _ PAGE�O OF .�- transmission or, if mailed, on the third day following the date of deposit in the course of transmission with the United States Postal Service. Notices shall be sent as follows: If to City: City of Lake Elsinore Attn: City Manager 130 S. Main Street Lake Elisnore, CA 92530 FAX No. (909) 674 -239 With copies to: Van Blarcom, Leibold, McClendon & Mann, P.C. Attn: Barbara Zeid Leibold, City Attorney 23422 Mill Creek Drive, Suite 105 Laguna Hills, CA 92653 FAX No. (949) 457 -6305 If to Owner: le- Corman Leigh -Tozai Elsinore, LLC Attn: Pete Ayala 32823 Highway 79 South Temecula, CA 92592 FAX No. (909) 296 -5071 Each such notice, statement, demand, consent, approval, authorization, offer, designation, request or other communication hereunder shall be deemed delivered to the party to whom it is addressed (a) if personally served or delivered, upon delivery, (b) if given by electronic communication, whether by telex, telegram or telecopier upon the sender's receipt of an appropriate answerback or other written acknowledgement, (c) if given by registered or certified mail, return receipt requested, deposited with the United States mail postage prepaid, 72 hours after such notice is deposited with the United States mail, (d) if given by overnight courier, with courier charges prepaid, 24 hours after delivery to said overnight courier; or' (e) if given by any other means, upon delivery at the address specified in this Section. Section 6. California Law. This Deposit Agreement shall be governed and construed in accordance with the laws of the State of California. The Parties shall be entitled to seek any remedy available at law and in equity. All legal actions must be instituted in the Superior Court of the County of Riverside, State of California, in an appropriate municipal court in Riverside County, or in the United States District Court for District of California in which Riverside County is located. Section 7 Successors and Assigns. This Deposit Agreement shall be binding upon and insure to the benefit of the successors and assigns of the parties hereto. AGENDA ITEM NO. PAGE__U___OF_ Section 8 Counterparts. This Deposit Agreement may be executed in counterparts, each of which shall be deemed an original and all of which shall constitute but one and the same instrument. ` o Section 9. Other Agreements. The obligations of the Owner hereunder shall be that of a party hereto. Nothing herein shall be construed as affecting the City's or Owner's rights, or duties to perform their respective obligations, under other agreements, use regulations or subdivision requirements relating to the development. This Deposit Agreement shall not confer any additional rights, or waive any rights given, by either party hereto under any development or other agreement to which they are a party. Section 10. Titles and Captions. Titles and captions are for convenience of reference only and do not define, describe or limit the scope or the intent of this Deposit Agreement or of any of its terms. Reference to section numbers are to sections in this Deposit Agreement, unless expressly stated otherwise. Section 11. Interpretation. As used in this Deposit Agreement, masculine, feminine or neuter gender and the singular or plural number shall each be deemed to include the others where and when the context so dictates. The word "including" shall be construed as if followed by the words "without limitation." This Deposit Agreement shall be interpreted as though prepared jointly by both Parties. Section 12. No Waiver. A waiver by either Party of a breach of any of the covenants, conditions or agreements under this Deposit Agreement to be performed by the other Party shall not be construed as a waiver of any succeeding breach of the same or other covenants, agreements, restrictions or conditions of this Deposit Agreement. Section 13. Modifications. Any alteration, change or modification of or to this Deposit Agreement, in order to become effective, shall be made in writing and in each instance signed on behalf of each Party. Section 14. Severability. If any term, provision, condition or covenant of this Deposit Agreement or its application to any party or circumstances shall be held, to any extent, invalid or unenforceable, the remainder of this Deposit Agreement, or the application of the term, provision, condition or covenant to persons or circumstances other than those as to whom or which it is held invalid or unenforceable, shall not be affected, and shall be valid and enforceable to the fullest extent permitted by law. Section 15. Computation of Time. The time in which any act is to be done under this Deposit Agreement is computed by excluding the first day (such as the day escrow opens), and including the last day, unless the last day is a holiday or Saturday or Sunday, and then that day is also excluded. The term "holiday" shall mean all holidays as specified in Section 6700 and 6701 of the California Government Code. If any act is to be done by a particular time during a day, that time shall be Pacific Time Zone time. Section 16. Legal Advice. Each Party represents and warrants to the other the following: they have carefully read this Deposit Agreement, and in signing this Deposit Agreement, they do so with full knowledge of any right which they may have; they have AGENDA ITEM N0. PAGE __0F! received independent legal advice from their respective legal counsel as to the matter set forth in this Deposit Agreement, or have knowingly chosen not to consult legal counsel as to the matters set forth in this Deposit Agreement; and, they have freely signed this Deposit Agreement without any reliance upon any agreement, promise, statement or representation by or on behalf of the other Party, or their respective agents, employees, or attorneys, except as specifically set forth in this Deposit Agreement, and without duress or coercion, whether economic or otherwise. Section 17 Cooperation. Each Party agrees to cooperate with the other in this transaction and, in that regard, to sign any and all documents which may be reasonably necessary, helpful, or appropriate to carry out the purposes and intent of this Deposit Agreement including, but not limited to, releases or additional agreements. Section 18. Conflicts of Interest. No member, official or employee of City shall have any personal interest, direct or indirect, in this Deposit Agreement, nor shall any such member, official or employee participate in any decision relating to the Deposit Agreement which affects his personal interests or the interests of any corporation, partnership or association in which he is directly or indirectly interested. [Signatures on following page] AGENDA ITEM N0.__ PAGE__ j�__OF _ IN WITNESS WHEREOF, the Parties have executed this Deposit Agreement as of the respective dates set forth below. ATTEST: FREDERICK RAY, CITY CLERK FREDERICK RAY APPROVED AS TO FORM: VAN BLARCOM, LEIBOLD, McCLENDON & MANN, P.C. City Attorney BARBARA ZEID LEIBOLD "CITY" CITY OF LAKE ELSINORE, a municipal corporation By: _ Title: "OWNER" CORMAN LEIGH -TOZAI ELSINORE, LLC, a California limited liability company By: Corman Leigh Communities, a California corporation Its: Managing Member By: _ Title: ,"me AGENDA ITEM NO. PAGE _/ q OF :j"j,_ FEE DEPOSIT AND REIMBURSEMENT AGREEMENT by and between CITY OF LAKE ELSINORE and CORMAN LEIGH -TOZAI ELSINORE, LLC relating to CITY OF LAKE ELSINORE COMMUNITY FACILITIES DISTRICT NO. 2006-2 (VISCAYA) 45692486.1 AGENDA ITEM NO. _J_ PAGE _,____OF� _ FEE DEPOSIT AND REIMBURSEMENT AGREEMENT THIS FEE DEPOSIT AND REIMBURSEMENT AGREEMENT (the "Agreement ") is entered into effective as of the 10th day of January, 2006, by and between the CITY OF LAKE ELSINORE, a city duly organized and existing under the laws of the State of California ( "City "), and CORMAN LEIGH -TOZAI ELSINORE, LLC, a California limited liability company ( "Property Owner "), and relates to the proposed formation by City of a community facilities district to be known as "City of Lake Elsinore Community Facilities District No. 2006- 2 (Viscaya)" (the "CFD "). RECITALS: A. The property described and depicted in Exhibit "A" hereto (the "Property ") is proposed to constitute the land within the boundaries of the CFD. B. Property Owner intends to develop the Property for residential purposes and has obtained or intends to obtain the necessary development approvals to construct approximately 168 residential units on the Property, as such development may be modified from time to time (the "Project "). C. The Project will require the payment, pursuant to the land use entitlements, conditions of approval, existing City ordinances and resolutions and development agreement for and applicable to the Project (the "Project Conditions "), of certain City Fees (defined below). D. In conjunction with the recording of the final subdivision map(s) for the Project, applicable to issuance of grading permits and /or the issuance of building permits for the construction of homes within the Project, Property Owner, or its successors or assigns, may elect to provide a security deposit to cover City Fees to the City (the "Deposit') before any Bond Proceeds are available to pay the City Fees. In such case, Property Owner shall be entitled to (i) reimbursement of such Deposits and (ii) credit for payments made to the City from Bond Proceeds of the City Fees which would otherwise be due to the City in conjunction with the Project, all as further described herein. 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. Definitions. Unless the context clearly otherwise requires, the terms defined in this Section shall, for all purposes of this Agreement, have the meanings herein specified. (a) "Act' means the Mello -Roos Community Facilities Act of 1982, Chapter 2.5 (commencing with Section 53311) of Part 1 of Division 2 of Title 5 of the California Government Code. 45692486.1 1 AGENDA ITEM NO. PAGE OF a (b) "Bond Proceeds" or "Proceeds of the Bonds" shall mean those net funds generated by the sale of the Bonds and investment earnings thereon. (c) "Bonds" shall mean those bonds, or other securities, issued by, or on behalf of, the CFD in one or more series, as authorized by the qualified electors within the CFD. (d) "Deposits" means an amount deposited with the City by Property Owner as security for City Fees and which are eligible for refund by the City upon the sale of Bonds. (e) "City Fees" means the fees and charges and all components thereof imposed by the City upon the Project pursuant to the Project Conditions. Agreement. (f) "Party" or "Parties" shall mean any one or all of the parties to this (g) "State" means the State of California. 3. Proposed Formation of the CFD. City will undertake to analyze the appropriateness of forming the CFD. City will retain, at the expense of the Property Owner, the necessary consultants to analyze the proposed formation of the CFD. 4. Sale of Bonds and Use of Proceeds. In the event that the CFD is formed, the City Council acting as the legislative body of the CFD may, in its sole discretion, finance, among other things, the City Fees by issuing the Bonds. As required by the Project Conditions, it may be necessary for Property Owner, or its successors or assigns, to make Deposits before Bonds are issued. Upon the issuance and sale of the Bonds, Property Owner may execute and submit a payment request, in substantially the form attached hereto as Exhibit `B ", to the CFD requesting disbursement to the City of an amount equal to all Deposits from Bond Proceeds. Within ten (10) business days of the City's receipt of funds pursuant to such disbursement request, the City shall return the Deposits to Property Owner. In the event Bonds are not issued within twelve (12) months of the date of any Deposit, such Deposit may be applied to pay the City Fees, and shall no longer be reflected as a deposit on the accounts of the City. 5. Indemnification. Property Owner shall assume the defense of, indemnify and save harmless, City and the CFD, their respective officers and employees, and each and every one of them, 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 resulting from, any act or omission of Property Owner with respect to this Agreement; provided, however, that Property Owner shall not be required to indemnify any person or entity as to damages resulting from negligence or willful misconduct of such person or entity or their officers, agents or employees. 6. Amendment and Assignment. This Agreement may be amended at any time but only in writing signed by each party hereto. This Agreement may be assigned, in whole or in part, by the Property Owner to the purchaser of any parcel of land within the Property provided, however, such assignment shall not be effective unless and until the City has been notified, in writing, of such assignment. 45692486.1 2 AGENDA ITEM N0. PAGEL _ OF__ 7. Entire Agreement. This Agreement contains the entire agreement between the parties with respect to the matters provided for herein and supersedes all prior agreements and negotiations between the parties with respect to the subject matter of this Agreement. 8. Notices. Any notice, payment or instrument required or permitted by this Agreement to be given or delivered to either party shall be deemed to have been received when personally delivered or seventy -two hours following deposit of the same in any United States Post Office in California, registered or certified, postage prepaid, addressed as follows: City: City of Lake Elsinore 130 S. Main Street Lake Elsinore, California 92530 Attn: City Manager Property Owner: Corman Leigh -Tozai Elsinore, LLC 32823 Highway 79 South Temecula, California 92592 Attn: Pete Ayala Each party may change its address for delivery of notice by delivering written notice of such change of address to the other party hereto. 9. Attorneys' Fees. In the event of the bringing of any action or suit by any Party against any other Party arising out of this Agreement, the Party in whose favor final judgment shall be entered shall be entitled to recover from the losing Party all costs and expenses of suit, ""d including reasonable attorneys' fees. 10. 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 reasonably possible. 11. 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. 12. Waiver. Failure by a party to insist upon the strict performance of any of the provisions of this Agreement by the other party hereto, or the failure by a party to exercise its rights upon the default of another party, shall not constitute a waiver of such party's right to insist and demand strict compliance by such other party with the terms of this Agreement thereafter. 13. No Third Party Beneficiaries. No person or entity other than the CFD, when and if formed, shall be deemed to be a third party beneficiary hereof, and nothing in this Agreement (either express or implied) is intended to confer upon any person or entity, other than the City, the CFD, and Property Owner (and their respective successors and assigns, exclusive of individual homebuyers), any rights, remedies, obligations or liabilities under or by reason of this Agreement. 11460* 45692486.1 3 AGENDA ITEM N0. ~% PACE��OF .._ 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. Countearts. This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which shall constitute but one instrument. IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year written above. ATTEST: FREDERICK RAY, CITY CLERK LI-A FREDERICK RAY APPROVED AS TO FORM: VAN BLARCOM, LEIBOLD, McCLENDON & MANN, P.C. City Attorney CITY OF LAKE ELSINORE, a municipal corporation IM Mayor CORMAN LEIGH -TOZAI ELSINORE, LLC, a California limited liability company By: Corman Leigh Communities, a California corporation Its: Managing Member By: Tit] 45692486.1 4 AGENDA ITEM NO. % PAC;E__OF� EXHIBIT A DESCRIPTION OF PROPERTY LEGAL DESCRIPTION •..r 45692486.1 AGENDA ITEM N0. PAGE 20- _0F3 r-, 45692486.1 BOUNDARY MAP AGENDA ITEM N0. PAGE OF EXHIBIT B DISBURSEMENT REQUEST FORM 1. City of Lake Elsinore Community Facilities District No. 2006 -2 (Viscaya) ( "CFD ") is hereby requested to pay from the CFD bond proceeds to the City of Lake Elsinore (the "City "), as Payee, the sum set forth in 3 below. 2. The undersigned certifies that the amount requested for City Fees is due and payable and has not formed the basis of prior request or payment. 3. Amount requested For Lot Nos: 4. The amount set forth in 3 above is authorized and payable pursuant to the terms of the Fee Deposit and Reimbursement Agreement by and between the CITY OF LAKE ELSINORE and CORMAN LEIGH -TOZAI ELSINORE, LLC, dated as of January 10, 2006 (the "Agreement "). Capitalized terms not defined herein shall have the meaning set forth in the Agreement. CORMAN LEIGH -TOZAI ELSINORE, LLC, a California limited liability company N40, By: Corman Leigh Communities, a California corporation Its: Managing Member By:_ Title: Date: cc: City of Lake Elsinore Finance Dept. 45692486.1 AGENDA ITEM N0. PAGE_Dja, 0 F_._ 45692472.1 FEE DEPOSIT AND REIMBURSEMENT AGREEMENT by and among CITY OF LAKE ELSINORE, ELSINORE VALLEY MUNICIPAL WATER DISTRICT and CORMAN LEIGH -TOZAI ELSINORE, LLC relating to CITY OF LAKE ELSINORE COMMUNITY FACILITIES DISTRICT NO. 2006-2 (VISCAYA) AGENDA ITEM NO. � PAGE 3 OF _ FEE DEPOSIT AND REIMBURSEMENT AGREEMENT on THIS FEE DEPOSIT AND REIMBURSEMENT AGREEMENT (the "Agreement ") is entered into effective as of the 10th day of January, 2006, by and among the CITY OF LAKE ELSINORE, a city duly organized and existing under the laws of the State of California ( "City "), ELSINORE VALLEY MUNICIPAL WATER DISTRICT, County of Riverside, State of California, a municipal water district ( "EVMWD "), and CORMAN LEIGH -TOZAI ELSINORE, LLC, a California limited liability company ( "Property Owner "), and relates to the proposed formation by City of a community facilities district to be known as "City of Lake Elsinore Community Facilities District No. 2006 -2 (Viscaya)" (the "CFD "). RECITALS: A. The property described and depicted in Exhibit "A" hereto (the "Property ") is proposed to constitute the land within the boundaries of the CFD. B. Property Owner intends to develop the Property for residential purposes and has obtained or intends to obtain the necessary development approvals to construct approximately 168 residential units on the Property, as such development may be modified from time to time (the "Project "). C. The Project will require the payment, pursuant to the rules and regulations of EVMWD, as amended from time to time, applicable to the Project (the "Project Conditions ") of certain EVMWD Charges (defined below). 1`60 D. In conjunction with the recording of the final subdivision map(s) for the Project, the issuance of building permits for the construction of homes within the Project and/or receipt of water meters for such homes, Property Owner, or its successors or assigns, may elect to provide a security deposit to cover EVMWD Charges to EVMWD (the "Deposit ") before any Bond Proceeds are available to pay the EVMWD Charges. In such case, Property Owner shall be entitled to (i) reimbursement of such Deposits and (ii) credit for payments made to EVMWD from Bond Proceeds of the EVMWD Charges which would otherwise be due to EVMWD in conjunction with the Project, all as further described herein. 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. Definitions. Unless the context clearly otherwise requires, the terms defined in this Section shall, for all purposes of this Agreement, have the meanings herein specified. (a) "Act" means the Mello -Roos Community Facilities Act of 1982, Chapter 2.5 (commencing with Section 53311) of Part 1 of Division 2. of Title 5 of the California Government Code. 1"00 45692472.1 1 AGENDA ITEM NO. 7 PACE a�LOF, o 1-� (b) "Bond Proceeds" or "Proceeds of the Bonds" shall mean those net funds generated by the sale of the Bonds and investment earnings thereon. (c) "Bonds" shall mean those bonds, or other securities, issued by, or on behalf of, the CFD in one or more series, as authorized by the qualified electors within the CFD. (d) "Deposits" means an amount deposited with EVMWD by Property Owner as security for EVMWD Charges and which are eligible for refund by EVMWD upon the sale of Bonds. (e) "EVMWD Charges" means water connection fees, sewer connection fees, annexation fees, sewer treatment capacity charges and all components thereof of EVMWD imposed upon the Project to pay for the provision of water and sewer services to and the construction of EVMWD water and sewer facilities required to serve the Project. (f) "Party" or "Parties" shall mean any one or all of the parties to this Agreement. (g) "State" means the State of California. 3. Proposed Formation of the CFD. City will undertake to analyze the appropriateness of forming the CFD. City will retain, at the expense of the Property Owner, the necessary consultants to analyze the proposed formation of the CFD. 4. Sale of Bonds and Use of Proceeds. In the event that the CFD is formed, the City Council acting as the legislative body of the CFD may, in its sole discretion, finance, among other things, the EVMWD Charges by issuing the Bonds. As required by the Project Conditions, it may be necessary for Property Owner, or its successors or assigns, to make Deposits before Bonds are issued. Upon the issuance and sale of the Bonds, Property Owner may execute and submit a payment request, in substantially the form attached hereto as Exhibit `B ", to the CFD requesting disbursement to EVMWD of an amount equal to all Deposits from Bond Proceeds. Within ten (10) business days of EVMWD's receipt of funds pursuant to such disbursement request, EVMWD shall return the Deposits to Property Owner. In the event Bonds are not issued within twelve (12) months of the date of any Deposit, such Deposit may be applied to pay the EVMWD Charges, and shall no longer be reflected as a deposit on the accounts of EVMWD. 5. Indemnification. Property Owner shall assume the defense of, indemnify and save harmless, the City, the CFD and EVMWD, their respective officers and employees, and each and every one of them, 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 resulting from, any act or omission of Property Owner with respect to this Agreement; provided, however, that Property Owner shall not be required to indemnify any person or entity as to damages resulting from negligence or willful misconduct of such person or entity or their officers, agents or employees. 45692472.1 2 AGENDA ITEM N0. % PACE ..aOF_,_ 6. Disclosure of Special Tax; Calculation of Special Tax Requirement. (a) Delivery of Notice. From and after the date of this Agreement, Property Owner and its successors and assigns shall give a "Notice of Special Tax" (as defined in Section 6(b) below) to each prospective purchaser of a parcel in the CFD and shall deliver a fully executed copy of each notice to the CFD. Property Owner and its successors and assigns shall (i) maintain records of each Notice of Special Tax for a period of five (5) years, and (ii) shall provide copies of each notice to the CFD promptly following the giving of such notice. Property Owner and its successors and assigns shall include the Notice of Special Tax in all Property Owner's and its successors' and assigns' applications for Final Subdivision Reports required by the Department of Real Estate ( "DRE ") which are filed after the effective date of this Agreement. Property Owner and its successors and assigns shall require, as a condition precedent to close an escrow for the sale of real property to a developer acquiring Iots (a "Residential Developer "), that such Residential Developer shall (i) maintain records of each Notice of Special Tax for a period of five (5) years, (ii) provide copies of each notice to the CFD promptly following the giving of such notice, and (iii) include the Notice of Special Tax in all of such Residential Developer's applications for Final Subdivision Reports required by DRE. (b) Notice of Special Tax. With respect to any parcel, the term "Notice of Special Tax" means a notice in the form prescribed by California Government Code Section 53341.5 which is calculated to disclose to the purchaser thereof (i) that the property being purchased is subject to the special tax of the CFD; (ii) the land use classification of such property; (iii) the maximum annual amount of the special tax and the number of years for which it will be levied; (iv) if available at the time such notice is delivered, an indication of the amount of special tax to be levied on such property for the following fiscal year; and (v) the types of facilities or services to be paid for with the proceeds of the special tax. (c) Notice to Subsequent Purchasers. The CFD will file-with the Riverside County Recorder a notice of special tax lien that gives notice of the existence of the CFD and the levy of the special tax on property within the CFD for the benefit of subsequent property owners, pursuant to requirements of Section 3114.5 of the Streets and Highways Code. (d) Information Sheet and Sample Property Tax Bill. Property Owner and its successors and assigns shall provide each purchaser of property with a sample property tax bill in a form approved by the CFD. Property Owner and its successors and assigns shall provide prospective purchasers of homes an information sheet in the sales office in the form set forth in Exhibit C attached hereto and incorporated herein by this reference. 7. Amendment and Assignment. This Agreement may be amended at any time but only in writing signed by each party hereto. This Agreement may be assigned, in whole or in part, by the Property Owner to the purchaser of any parcel of land within the Property provided, however, such assignment shall not be effective unless and until the City and EVMWD have been notified, in writing, of such assignment. 45692472.1 3 AGENDA ITEM N0. PACE a (a 0 1401*1 8. Entire Agreement. This Agreement contains the entire agreement between the parties with respect to the matters provided for herein and supersedes all prior agreements and negotiations between the parties with respect to the subject matter of this Agreement. 9. Notices. Any notice, payment or instrument required or permitted by this Agreement to be given or delivered to either party shall be deemed to have been received when personally delivered or seventy -two hours following deposit of the same in any United States Post Office in California, registered or certified, postage prepaid, addressed as follows: City: City of Lake Elsinore 130 S. Main Street Lake Elsinore, California 92530 Attn: City Manager EVMWD: Elsinore Valley Municipal Water District 31315 Chaney Street Lake Elsinore, California 92530 Attn: General Manager Property Owner: Corman Leigh -Tozai Elsinore, LLC 32823 Highway 79 South Temecula, California 92592 Attn: Pete Ayala Each party may change its address for delivery of notice by delivering written notice of such change of address to the other party hereto. 10. Attorneys' Fees. In the event of the bringing of any action or suit by any Party against any other Party arising out of this Agreement, the Party in whose favor final judgment shall be entered shall be entitled to recover from the losing Party all costs and expenses of suit, including reasonable attorneys' fees. 11. 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 reasonably possible. 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. Waiver. Failure by a party to insist upon the strict performance of any of the provisions of this Agreement by the other party hereto, or the failure by a party to exercise its rights upon the default of another party, shall not constitute a waiver of such party's right to insist and demand strict compliance by such other party with the terms of this Agreement thereafter. 14. No Third Party Beneficiaries. No person or entity other than the CFD, when and if formed, 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, 45692472.1 4 AGENDA ITEM NO. 7 PAGE DD_OF _ the CFD, EVMWD and Property Owner (and their respective successors and assigns, exclusive of individual homebuyers), any rights, remedies, obligations or liabilities under or by reason of this Agreement. .%Wof 15. Singular and PIural; Gender. As used herein, the singular of any word includes the plural, and terms in the masculine gender shall include the feminine. 16. Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which shall constitute but one instrument. N%.** ../ 45692472.1 5 AGENDA Il` M No. -7 PAGE ;A-S 0 IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year written above. ATTEST: FREDERICK RAY, CITY CLERK By: FREDERICK RAY APPROVED AS TO FORM: VAN BLARCOM, LEIBOLD, McCLENDON & MANN, P.C. City Attorney CITY OF LAKE ELSINORE, a municipal corporation Mayor ELSINORE VALLEY MUNICIPAL WATER DISTRICT General Manager of the Elsinore Valley Municipal Water District CORMAN LEIGH -TOZAI ELSINORE, LLC, a California limited liability company By: Corman Leigh Communities, a California corporation Its: Managing Member By:_ Title: 45692472.1 6 AGENDA ITEM N0. -7 PAGE�o EXHIBIT A DESCRIPTION OF PROPERTY LEGAL DESCRIPTION 45692472.1 AGENDA ITEM N0. _ PAGE_ 30 0 45692472.1 BOUNDARY MAP AGENDA ITEM NO. -7 PAGE ___,__OF t3L,_ EXHIBIT B DISBURSEMENT REQUEST FORM 1. City of Lake Elsinore Community Facilities District No. 2006 -2 (Viscaya) ("CID") is hereby requested to pay from the CFD bond proceeds to the Elsinore Valley Municipal Water District ( "EVMWD "), as Payee, the sum set forth in 3 below. 2. The undersigned certifies that the amount requested for EVMWD Charges is due and payable and has not formed the basis of prior request or payment. 3. Amount requested: $ For Lot Nos: 4. The amount set forth in 3 above is authorized and payable pursuant to the terms of the Fee Deposit and Reimbursement Agreement by and among the CITY OF LAKE ELSINORE, ELSINORE VALLEY MUNICIPAL WATER DISTRICT and CORMAN LEIGH -TOZAI ELSINORE, LLC, dated as of January 10, 2006 (the "Agreement "). Capitalized terms not defined herein shall have the meaning set forth in the Agreement. cc: City of Lake Elsinore Finance Dept. CORMAN LEIGH -TOZAI ELSINORE, LLC, a California limited liability company N"00 By: Corman Leigh Communities, a California corporation Its: Managing Member By:_ Title: Date: *"00 45692472.1 AGENDA ITEM NO. PAGE OF EXHIBIT C FORM OF INFORMATION SHEET 1. WHAT IS COMMUNITY FACILITIES DISTRICT (CFD) NO. ? CFD No. was formed pursuant to the "Mello -Roos Community Facilities Act of 1982" to finance 2. WHO IS RESPONSIBLE TO PAY THE SPECIAL TAX AND HOW IS IT BILLED? The property owner is responsible for paying the CFD No. special tax, which will appear as a separate line item on your property tax bill along with your regular property taxes. ` 3. HOW MUCH WILL MY SPECIAL TAX BE? The special tax is based upon the size of the home. The assigned and maximum special taxes for CFD No. for the 2006 -07 Fiscal Year are summarized below. 1 I Residential Property I $ /dwelling unit Greater than or equal to 2,350 sq. ft. 2 Residential Property $ /dwelling unit 1,950 sq. ft. — 2,349 sq. ft. 3 Residential Property $ /dwelling unit 1,550 sq. ft — 1,949 sq. ft. 4 Residential Property $ /dwelling unit Less than 1,550 sq. ft. 4. HOW LONG WILL I HAVE TO PAY THE CFD NO. SPECIAL TAX? The CFD No. special tax will not be collected after calendar year 20_. 5. CAN THE SPECIAL TAXES BE PREPAID? Homeowners have the option of prepaying their CFD No. special tax anytime. For prepayment information please contact the administrator for the special taxes , 6. WHERE CAN I GET MORE INFORMATION? r For more information in regards to CFD No. , contact the the City of Lake Elsinore administrator 45692472.1 i AGENDA C'Em NO. PAGE 31 OF 1L. CITY OF LAKE ELSINORE � JOINT REPORT TO CITY COUNCIL AND REDEVELOPMENT AGENCY TO: FROM: DATE: SUBJECT: APPLICANT: REQUEST MAYOR AND CITY COUNCIL ROBERT A. BRADY, CITY MANAGER JANUARY 109 2006 FINAL MAP NO. 33056 OAK GROVE EQUITIES Approval of Final Map No. 33056 which consists of approximately 10.0 acres that are being subdivided into five (5) commercial lots, one remainder lot and three (3) lettered lots for street dedication purposes. This project is located at the northwest corner of Central Avenue and Collier Avenue. LOCATION The proposed Final Map is located on the northwest corner of Central and Collier Avenues, within Redevelopment Project Area No. 1. BACKGROUND At their regularly scheduled meeting ofMarch 22, 2005 the City Council approved Tentative Parcel Map No. 33056. DISCUSSION Staff has reviewed the Final Map and finds that it substantially conforms to Tentative Tract Map No. 33056 and that all Conditions of Approval relative to the Final Map approval have been completed. AGENDA 1TEM NO. PAGE ­ OF REPORT TO CITY COUNCIL AND REDEVELOPMENT AGENCY JANUARY 10, 2006 PAGE 2 FISCAL IMPACT None. RECOMMENDATION 1. Staff Recommends the following: • That the City Council Approve Final Map No. 33056 subject to the City Engineer's acceptance as being true and correct; and • That the City Council authorize the City Clerk to accept all dedications, sign the map and arrange for the recordation; and • That the Agency Board concurs with the City Council approval and authorization referenced above. PREPARED BY: KEN A. SEUMALO, CITY ENGINEER APPROVED FOR AGENDA BY: MANAGF' S OFFICE 'E DIREC OR'S OFFICE Attachment: Vicinity Map �.r AGENDA ITEM NO. PAGE_L__()F 3 VICINITY MAP FINAL MAP 33056 CITY COUNCIL JANUARY 10, 2006 AGENDA ITEM N0. t PAGEL 3 OF CITY OF LAKE ELSINORE JOINT REPORT TO CITY COUNCIL AND REDEVELOPMENT AGENCY TO: FROM: DATE: SUBJECT: APPLICANT: REQUEST MAYOR AND CITY COUNCIL CHAIRMAN AND REDEVELOPMENT AGENCY ROBERT A. BRADY, CITY MANAGER JANUARY 10, 2006 FINAL MAP NO. 34023 SALVADOR MENDEZ Approval of Final Map No. 34023 which consists of approximately 0.34 acres that are being subdivided into two (2) residential lots. LOCATION The proposed subdivision is located at the southwest corner of Heald Avenue and Mohr Street within Redevelopment Project Area No. 1. BACKGROUND At their regularly scheduled meeting of November 22, 2005 the City Council approved Tentative Parcel Map No. 34023. DISCUSSION Staff has reviewed the Final Map and finds that it substantially conforms to Tentative Tract Map No. 34023 and that all Conditions of Approval relative to the Final Map approval have been completed. FISCAL IMPACT None. AGENDA ITEM NQ. PAGE OF 3 REPORT TO CITY COUNCIL AND REDEVELOPMENT AGENCY JANUARY 10, 2006 "no* PAGE 2 RECOMMENDATIO. 1. Staff Recommends the following: • That the City Council Approve Final Map No. 34023 subject to the City Engineer's acceptance as being true and correct; and • That the City Council authorize the City Clerk to accept all dedications, sign the map and arrange for the recordatirn; and • That the Agency Board concur with the City Council approval and authorization referenced above. PREPARED BY: KEN A. SEUMALO, CITY ENGINEER APPROVED FOR AGENDA BY: CITY MANAGERX OFFICE 'UTIVE DIRECTOR'S OFFICE Attachment: Vicinity Map AGENDA ITEM NQ. 9 PAGE z Qr 3 ..o, VICINITY MAP "~ FINAL PARCEL MAP NO. 34023 CITY COUNCIL JANUARY 10, 2006 AGENDA ITEM NO_ (� PAGE_ -�3L _ OF 3 ORDINANCE NO. 2005 —1153 AN ORDINANCE OF THE CITY OF LAKE ELSINORE, CALIFORNIA, AMENDING CHAPTER 16.74 TO TITLE 16 OF THE LAKE ELSINORE MUNICIPAL CODE ESTABLISHING FEES ON DEVELOPMENT PROJECTS WHEREAS, Chapter 16.74 of the Lake Elsinore Municipal Code establishes a mechanism for the benefit of the citizens whereby as a condition to the issuance of a building permit or certificate of occupancy by the City the property owner or land developer will be required to pay Development Impact Fees or provide other consideration to the City; and WHEREAS, it is the purpose and intent of the City Council of the City of Lake Elsinore to amend Chapter 16.74 by including additional Development Impact Fees for the purpose of defraying the costs of public expenditures for capital improvements (and operational services to the extent allowed by law) which will benefit such new development. THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE DOES ORDAIN AS FOLLOWS: SECTION 1. DEFINITIONS. That Section 16.74.020 of Chapter 16.74 of the Lake Elsinore Municipal Code is hereby amended to add the following defined terms: "Animal Shelter Facilities" mean animal shelter facilities that will primarily serve residents in the City by providing animal control and adoption services, including planning, preliminary engineering, engineering design studies, land surveys, issuance of permits, and construction of animal shelter facilities construction projects. "City Hall and Public Works Facilities" mean the City Hall and public works facilities that serve both homes and businesses citywide, including planning, preliminary engineering, engineering design studies, land surveys, issuance of permits, and construction of City Hall and public works facilities construction projects. "Community Center Facilities" mean community center facilities that will primarily serve residents in the City by providing space and facilities for recreation and similar programs, including planning, preliminary engineering, engineering design studies, land surveys, issuance of permits, and construction of community center facilities construction projects. "Lake Side Facilities" mean lake side facilities that will primarily serve residents in the City by providing recreation at the lake, including planning, preliminary engineering, engineering design studies, land surveys, issuance of permits, and construction of lake side facilities construction projects. SECTION 2. CITY HALL AND PUBLIC WORKS FACILITIES FEE. That Section 16.74.042 is hereby added to Chapter 16.74 of the Lake Elsinore Municipal Code as follows: AGENDA ITEM NO. PAGE /_OF q CITY COUNCIL ORDINANCE NO. 1153 Page 2 of 4 16.74.042 City Hall and Public Works Facilities Fee. To mitigate the additional burdens created by new development for City Hall and Public Works Facilities, a Development Impact Fee identified as the City Hall and Public Works Facilities Fee will be imposed on all new development in the City to finance the costs of City Hall and Public Works Facilities. SECTION 3. COMMUNITY CENTER FACILITIES FEE. That Section 16.74.044 is hereby added to Chapter 16.74 of the Lake Elsinore Municipal Code as follows: 16.74.044 Community Center Facilities Fee. To mitigate the additional burdens created by new development for Community Center Facilities, a Development Impact Fee identified as the Community Center Facilities Fee will be imposed on all new development in the City to finance the costs of Community Center Facilities. SECTION 4. LAKE SIDE FACILITIES FEE. That Section 16.74.046 is hereby added to Chapter 16.74 of the Lake Elsinore Municipal Code as follows: 16.74.046 Lake Side Facilities Fee. To mitigate the additional burdens created by new development for Lake Side Facilities, a Development Impact Fee identified as the Lake Side Facilities Fee will be imposed on all new development in the City to finance the costs of Lake Side Facilities. SECTION 5. ANIMAL SHELTER FACILITIES FEE. That Section 16.74.048 is hereby added to Chapter 16.74 of the Lake Elsinore Municipal Code as follows: 16.74.0468 Animal Shelter Facilities Fee. To mitigate the additional burdens created by new development for Animal Facilities, a Development Impact Fee identified as the Animal Shelter Facilities Fee will be imposed on all new development in the City to finance the costs of Animal Facilities. SECTION 6. SEVERABILITY If any provision, clause, sentence or paragraph of this ordinance or the application thereof to any person or circumstance shall be held invalid, such invalidity shall not affect the other provisions of this Ordinance and are hereby declared to be severable. 2 AGENDA ITEM NO- c3 V PAGE °? OF CITY COUNCIL ORDINANCE NO. 1153 Page 3 of 4 SECTION 7. NOTICE OF ADOPTION. The City Clerk shall certify as to adoption of the Ordinance and cause this Ordinance to be published and posted in the manner required by law. SECTION 8. EFFECTIVE DATE. This Ordinance shall take effect thirty (30) days after the date of its passage. The City Clerk shall certify as to adoption of the Ordinance and cause this Ordinance to be published and posted in the manner required by law. INTRODUCED AND APPROVED, UPON FIRST READING this 9TH day of August, 2005, by the following roll call vote: AYES: COUNCILMEMBERS: BUCKLEY, HICKMAN, KELLEY, SCHIFFNER, MAGEE NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: NONE ABSTAIN: COUNCILMEMBERS: NONE PASSED, APPROVED AND ADOPTED UPON SECOND READING this 23rd day of August, 2005, by the following roll call vote: AYES: COUNCILMEMBERS: BUCKLEY, HICKMAN, KELLEY, SCHIFFNER, MAGEE NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: NONE ABSTAIN: COUNCILMEMBERS: NONE SECOND READING CONFIRMINED AND APPROVED FOR PUBLICATION this 10'h day of January 2006, upon the following roll call vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: ABSTAIN: COUNCILMEMBERS: 3 / AGENDA ITEM NO. � PAGE 13 OF 7 CITY COUNCIL ORDINANCE NO. 1153 Page 4 of 4 ATTEST: Frederick Ray, Deputy City Clerk City of Lake Elsinore APPROVED AS TO FORM: Barbara Zeid Leibold, City Attorney City of Lake Elsinore Robert Magee, Mayor, City of Lake Elsinore AGENDA ITEM N0. &% PAGE_ q 0 F 7 u I*-- ORDINANCE NO. 1154 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA APPROVING ZONE CHANGE NO. 2005 -03 CHANGING THE ZONING DESIGNATION (FOR THE PARCEL SPECIFICALLY DESCRIBED AS ASSESSOR PARCEL NUMBER 373 -071- 018) FROM C -2 (GENERAL COMMERCIAL DISTRICT) TO R -3 (HIGH DENSITY RESIDENTIAL DISTRICT). WHEREAS, Leonard Leichnitz, of Lumos Communities, has initiated proceedings to change the zoning designation of the subject parcels known as APN 373- 071 -018 from C -2 (General Commercial District) to R -3 (High Density District); and WHEREAS, the Planning Commission of the City of Lake Elsinore at a regular meeting held on July 5, 2005 made its report upon the desirability of the proposed project and made its recommendations in favor of said Zone Change No. 2005 -03 by adopting Planning Commission Resolution No. 2005 -78 recommending to the City Council approval of Zone Change No. 2005 -03; and WHEREAS, public notice of said application has been given, and the City Council has considered evidence presented by the Community Development Department and other interested parties at a public hearing held with respect to this item on August 9, 2005. THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE DOES ORDAIN AS FOLLOWS: SECTION 1. The City Council has considered the proposed Zone Change No. 2005 -03, prior to making a decision to approve the proposed amendment to the Land Use Designation and establish a Zoning Designation. The City Council finds and determines that Mitigated Negative Declaration No. 2005 -03 is adequate and prepared in accordance with the requirements of the California Environmental Quality Act (CEQA). SECTION 2. That in accordance with State Planning and Zoning law and the Lake Elsinore Municipal Code the following findings for the approval of Zone Change No. 2005 -03 have been made as follows: 1. The proposed zone change will not be; a) detrimental to the health, safety, comfort or general welfare of the persons residing or working within the neighborhood of the proposed amendment or within the City, or b) injurious to the property or improvements in the neighborhood or within the City. The proposed Zone Change has been analyzed relative to its potentiality to be detrimental to the health, safety, comfort and welfare of the persons ..residing or AGENDA 1100 ND �,.L✓ CITY COUNCIL ORDINANCE NO. 1154 PAGE 2 of 3 working within the neighborhood of the proposed amendment. The primary issue I-mo identified by staff relates to Report, that the Level of Service for the intersections in the Study Area will not be degraded as a result of the mitigations and conditions of approval placed on this project as well as the ultimate goals and objectives of the General Plan Circulation Element. 2. The proposed action will be consistent with the Goals, Objectives, and Policies of the General Plan and the development standards established with the Lake Elsinore Municipal Code (LEMC). Based on its analysis, staff has concluded that the requested amendment to the General Plan Land Use Map and the corresponding Zone Change, allowing the development of the future condominium project is consistent with GOAL 1.0 of the General Plan Housing Element, obligating the City to provide "decent housin opportunities and a satisfying living environment for residents of Lake Elsinore ". g SECTION 3. ZONING RECLASSIFICATION. The Zoning Map of the City of Lake Elsinore, California, is hereby amended by changing, reclassifying and rezonin the following described property, to wit: g APN 373 - 071 -018 from C -2 (General Commercial District) to (R -3 (High Density Residential District). Approval is based on the following findings: 1. The proposed Zoning is consistent with the Goals, Policies, and Objectives in the General Plan. 2. The proposed Zoning is consistent with the General Plan and the various land uses authorized by the Ordinance are compatible with the objectives, policies, general land uses, and programs specified in the Plan. (Government Code Section 65860). 3. Reasons why the City has considered the effect of Zoning Ordinances on the regional housing needs in which the City is located and how the City has balanced these needs against the public service needs of its residents and available fiscal and environmental resources. (Government Code Section 65863.6). SECTION 4. This Ordinance shall take effect thirty (30) days after the date of its final passage. The City Clerk shall certify as to adoption of this Ordinance and cause this Ordinance to be published and posted in the manner required by law. PACE ... r _ __ CITY COUNCIL ORDINANCE NO. 1154 AO-- PAGE 2 of 3 INTRODUCED AND APPROVED UPON FIRST READING this 9th day of August, 2005, upon the following roll call vote: AYES: COUNCILMEMBERS: BUCKLEY, HICKMAN, KELLEY, SCHIFFNER, MAGEE NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: NONE ABSTAIN: COUNCILMEMBERS: NONE PASSED, APPROVED AND ADOPTED UPON SECOND READING this 13th day of September, 2005, upon the following roll call vote: AYES: COUNCILMEMBERS: BUCKLEY, HICKMAN, KELLEY, SCHIFFNER, MAGEE �^ NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: NONE ABSTAIN: COUNCILMEMBERS: NONE SECOND READING CONFIRMINED AND APPROVED FOR PUBLICATION this 10th day of January 2006, upon the following roll call vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: ABSTAIN: COUNCILMEMBERS: Robert E. Magee, Mayor City of Lake Elsinore AGENDA ffEM Pp►GE_____ ---�`� CITY COUNCIL ORDINANCE NO. 1154 PAGE 2 of 3 ATTEST: Frederick Ray, Deputy City Clerk City of Lake Elsinore APPROVED AS TO FORM: Barbara Zeid Leibold, City Attorney City of Lake Elsinore {AGENDA ITEM END. 3 PAGE___L_110F Ivao, ORDINANCE NO. 1155 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA APPROVING ZONE CHANGE NO. 2005 -06 CHANGING THE ZONING DESIGNATION OF THE PARCELS SPECIFICALLY DESCRIBED AS PARCEL NO(S) 2, 3 AND 4 ON EXHIBIT "A" OF LOT LINE ADJUSTMENT NO. 2004 -08 TO R -3 HIGH DENSITY RESIDENTIAL DISTRICT UNDER THE ZONING ORDINANCE. WHEREAS, City of Lake Elsinore has initiated proceedings to change the zoning of the parcels specifically described as Parcel No.(s) 2, 3 and 4 on Exhibit "A" of Lot Line Adjustment No 2004 -08, from (C -2) General Commercial to R -3 (High Density Residential District); and WHEREAS, the Planning Commission of the City of Lake Elsinore at a regular meeting held on July 5, 2005 made its report with a failure to approve Zone Change No. 2005-06; and WHEREAS, public notice of said application has been given, and the City Council has considered evidence presented by the Community Development Department and other interested parties at a public hearing held with respect to this item on August 9, 2005. THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE DOES ORDAIN AS FOLLOWS: SECTION 1. -The City Council has considered the proposed Zone Change No. 2005 -06, prior to making a decision to approve the proposed amendment to the Land Use Designation and establish a Zoning Designation. The City Council finds and determines that Mitigated Negative Declaration No. 2004 -04 is adequate and prepared in accordance with the requirements of the California Environmental Quality Act (CEQA) which adequately analyzed the environmental impacts. SECTION 2. That in accordance with State Planning and Zoning law and the Lake Elsinore Municipal Code the following findings for the approval of Zone Change No. 2005 -06 have been made as follows: 1. The proposed zone change will not be; a) detrimental to the health, safety, comfort or general welfare of the persons residing or working within the neighborhood of the proposed amendment or within the City, or b) injurious to the property or �^ improvements in the neighborhood or within the City. AGENDA ETEa3: Nv. PAGE F CITY COUNCIL ORDINANCE NO. 1155 ZONE CHANGE NO. 2005 -06 Page 2 of 5 The proposed Zone Change has been analyzed relative to its potentiality to be detrimental to the health, safety, comfort and welfare of the persons residing or working within the neighborhood of the proposed amendment. The primary issue identified by staff relates to the surrounding land uses and providing a needed buffer between the approved car dealership and the school to the west. 2. The proposed action will be consistent with the Goals, Objectives, and Policies of the General Plan and the development standards established with the Lake Elsinore Municipal Code (LEMC). Based on its analysis, staff has concluded that the requested amendment to the General Plan Land Use Map and the corresponding Zone Change, allowing the development of the density allowed subject is consistent with GOAL 1.0 of the General Plan Housing Element, obligating the City to provide "decent housing opportunities and a satisfying living environment for residents of Lake Elsinore ". SECTION 3. (ZONING RECLASSIFICATION). The Zoning Map of the City of Lake Elsinore, California, is hereby amended by changing, reclassifying and rezoning the subject property to R -3 High Density Residential District. Approval is based on the following findings; 1. The proposed Zoning is consistent with the Goals, Policies, and Objectives in the General Plan. 2. The proposed Zoning is consistent with the General Plan and the various land uses authorized by the Ordinance are compatible with the objectives, policies, general land uses, and programs specified in the Plan. (Government Code Section 65860). 3. Reasons why the City has considered the effect of Zoning Ordinances on the regional housing needs in which the City is located and how the City has balanced these needs against the public service needs of its residents and available fiscal and environmental resources. (Government Code Section 65863.6). SECTION 4. This Ordinance shall take effect thirty (30) days after the date of its final passage. The City Clerk shall certify as to adoption of this Ordinance and cause this Ordinance to be published and posted in the manner required by law. AGENDA ITEM 0 PAGE_ CITY COUNCIL ORDINANCE NO. 1155 ZONE CHANGE NO. 2005 -06 Page 3 of 5 INTRODUCED AND APPROVED UPON FIRST READING this 9th day of August, 2005, upon the following roll call vote: AYES: COUNCILMEMBERS: BUCKLEY, HICKMAN, KELLEY, SCHIFFNER, MAGEE NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: NONE ABSTAIN: COUNCILMEMBERS: NONE PASSED, APPROVED AND ADOPTED UPON SECOND READING this 13th day. of September, 2005, upon the following roll call vote: AYES: COUNCILMEMBERS: BUCKLEY, HICKMAN, KELLEY, SCHIFFNER, MAGEE � NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: NONE ABSTAIN: COUNCILMEMBERS: NONE SECOND READING CONFIRMINED AND APPROVED FOR PUBLICATION this 10th day of January 2006, upon the following roll call vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: ABSTAIN: COUNCILMEMBERS: Robert E. Magee, Mayor City of Lake Elsinore AGENDA ITEM N0. 3J PACE I DF_�L- CITY COUNCIL ORDINANCE NO. 1155 ZONE CHANGE NO. 2005 -06 Page 4 of 5 3 AGENDA ITEM NQ. `0 PAGE__5L__01` Jr' •10 CITY COUNCIL ORDINANCE NO. 1155 ZONE CHANGE NO. 2005-06 Page 5 of 5 ATTEST: Frederick Ray, Deputy City Clerk City of Lake Elsinore APPROVED AS TO FORM: Barbara Zeid Leibold, City Attorney City of Lake Elsinore -'11-- MENDA ITEM NO. PACE -5 OF ORDINANCE NO. 1156 ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE AUTHORIZING THE LEVY OF A SERVICES SPECIAL TAX AND A SPECIAL TAX WHEREAS, on August 9, 2005, the City Council (the "Council ") of the City of Lake Elsinore (the "City ") adopted Resolution No. 2005 -54 stating its intention to form the City of Lake Elsinore Community Facilities District No. 2005 -5 (Villages at Wasson Canyon) (the "CFD ") pursuant to the Mello -Roos Community Facilities Act of 1982, as amended (the "Act "), to finance a portion of the cost of providing parks, open space and storm drains maintenance services (the "Services ") that are in addition to those provided in the territory within the CFD prior to the formation of the CFD, and to finance the purchase, construction, expansion or rehabilitation of certain real and other tangible property with an estimated useful life of five years or longer, including public infrastructure facilities and other governmental facilities, which the City is authorized by law to construct, own or operate (the "Facilities "); and WHEREAS, on August 9, 2005, the Council also adopted Resolution No. 2005- 55 stating its intention and the necessity to incur bonded indebtedness in the amount not to exceed $8,500,000 to be issued for the purpose of financing the purchase, construction, expansion or rehabilitation of the Facilities; and WHEREAS, notice was published as required by law relative to the intention of the Council to form the CFD and to incur bonded indebtedness in the amount not to exceed $8,500,000 within the boundaries of the CFD; and WHEREAS, on August 9, 2005, this Council held a noticed public hearing as required by law relative to the determination to proceed with the formation of the CFD, the rate and method of apportionment and manner of collection of the special tax to be levied within the CFD to pay for the Services and the rate and method of apportion and manner of collection of the special tax to be levied within the CFD to pay the principal and interest on the proposed bonded indebtedness of the CFD, and relative to the necessity for authorizing the bonds, the purpose for which the bonds are to be issued, the amount of the proposed debt, the maximum term of the bonds and the maximum annual rate of interest to be paid; and WHEREAS, at said hearing all persons desiring to be heard on all matters pertaining to the formation of the CFD and the incurring of bonded indebtedness by the CFD were heard and a full and fair hearing was held; and WHEREAS, the Council subsequent to said hearing adopted Resolution No. 2005- determining the validity of prior proceedings and established the CFD; and WHEREAS, the Council subsequent to said hearing adopted Resolution No. 2005- which called an election within the CFD for August 9, 2005 on the AGENDA ITEM N0. PAGE___L__OF_fp-- CITY COUNCIL ORDINANCE NO. 1156 PAGE 2 of 4 Proposition of incurring bonded indebtedness, levying a special tax and appropriations limit; and setting an WHEREAS, on August 9, 2005, an election was held wit the eligible electors a hie the CFD in which approved by more than two- thirds vote the proposition of incurring bonded indebtedness, levying a special tax, and setting an appropriations limit, NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF L ELSINORE DOES HEREBY ORDAIN AS FOLLOWS; AKE Section 1. A special tax (the "Services Special Tax ") is levied wit boundaries of the CFD pursuant to the formula set forth in Exhibit "A" attached hie the and incorporated by reference in an amount necessary to pay all of the costs of r hereto the Services, periodic costs, and costs of the tax levy and collection and all Providing other costs. Section 2. A special tax (the "Special Tax ") is levied within the boundaries of CFD pursuant to the formulas set forth in Exhibit "A" attached hereto and inc the by reference in an amount necessary to pay all of the costs of r °rporated periodic costs, and costs of the tax levy and collection, and al other g the Facilities, amounts payable with respect to the bonded indebtedness. osts including Section 3. This legislative body is hereby further authorized each , b resolution adopted as provided in section 53340 of the Act to determine the y e specific special tax rate and amount to be levied for the then current or future tax ears except that the special tax rate to be levied shall not exceed the maximum rat years, � in Exhibit "A ". forth in Section 4. All of the collections of the Services Special Tax and Special Tax shall be used as provided for in the Act and Resolution No. 2005 -104 (Resolution Formation). ( ution of Section 5. The above authorized Services Special Tax and the Special Tax shall be collected in the same manner as ordinary subject to the same penalties and the same procedure and sale n caseslof del and shall be provided for ad valorem taxes; provided, however, the CFD may collect the Serviced Special Tax and the Special Tax at a different time or in a different manner if necessary es to meet its financial obligations. cessary Section 6. The Mayor shall sign this ordinance and the City Clerk shall attest t such signature. The City Clerk is directed to cause the title and summa or text o summary of the this ordinance, together with the vote thereon, to be published within fifteen 1 5) days after its passage at least once in a newspaper of general circulation publi shed circulated within the territorial jurisdiction of the City, and to post at the main f and fi the City a certified copy of the full text of the adopted ordinance along with the n es of the council Members voting for and against the ordinance. amen of AGENDA ITEM N®. 3 PAGE W OF CITY COUNCIL ORDINANCE NO. 1156 PAGE 3 of 4 Section 7. This ordinance relating to the levy of the Services Special Tax and the Special Tax takes effect and shall be in force from and after 30 days from the date of final passage. A copy of this ordinance shall be transmitted to the Clerk of the Board of Supervisors of Riverside County, the Assessor and the Treasurer -Tax Collector of Riverside County. INTRODUCED AND APPROVED UPON FIRST READING this 9" day of August, 2005 AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS ABSTAIN: COUNCILMEMBERS: BUCKLEY, KELLEY, SCHIFFNER, MAGEE NONE HICKMAN NONE PASSED, APPROVED AND ADOPTED UPON SECOND READING this 23rd day of August, 2005, upon the following roll call vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS ABSENT: COUNCILMEMBERS: ABSTAIN: COUNCILMEMBERS: BUCKLEY, HICKMAN, KELLEY, SCHIFFNER, MAGEE NONE NONE NONE SECOND READING CONFIRMINED AND APPROVED FOR PUBLICATION this 10`h day of January 2006, upon the following roll call vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: ABSTAIN: COUNCILMEMBERS: ON Robert E. Magee, Mayor AGENDA ITEM NU. PACE ,.�OF �O CITY COUNCIL ORDINANCE NO. 1156 PAGE 4 of 4 ATTEST: Frederick Ray, Deputy City Clerk City of Lake Elsinore APPROVED AS TO FORM: Barbara Zeid Leibold, City Attorney City of Lake Elsinore City of Lake Elsinore AGENDA ! EM NO._ PACE .�._0F(_ STATE OF CALIFORNIA ) ) ss. COUNTY OF RIVERSIDE ) I, , City Clerk of the City of Lake Elsinore, do hereby certify that the foregoing Ordinance was duly adopted by the City Council of said City at a regular meeting thereof held on the day of , 2005, and that it was so adopted by the following vote: AYES: NOES: ABSENT: ABSTAIN: By: City Clerk of the City of Lake Elsinore MtNbA f E[A Nu.-- PACE _6-OF a_, EXHIBIT "A" RATE AND METHOD OF APPORTIONMENT AGENDA ITEM NO. 3 Y _ .. PAGE (0 OF ORDINANCE NO. 1158 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE ACTING AS THE LEGISLATIVE BODY OF CITY OF LAKE ELSINORE COMMUNITY FACILITIES DISTRICT NO. 2003 -1 (LAW ENFORCEMENT, FIRE AND PARAMEDIC SERVICES) AUTHORIZING THE LEVY OF A SPECIAL TAX WITHIN ANNEXATION AREA NO. 14 (LAKEVIEW VILLAS) ANNEXED TO SAID DISTRICT. WHEREAS, on July 12, 2005, the City Council (the "Council ") of the City of Lake Elsinore, California (the "City ") adopted Resolution No. 2005 -64 stating its intention to annex certain property ( "Annexation Area No. 14 (Lakeview Villas) ") into City of Lake Elsinore Community Facilities District No. 2003 -1 (Law Enforcement, Fire and Paramedic Services) (the "District ") pursuant to the Mello -Roos Community Facilities Act of 1982, as amended, (the "Act "); and WHEREAS, notice was published as required by law relative to the intention of the Council to annex Annexation Area No. 14 (Lakeview Villas) into the District; and WHEREAS, on August 23, 2005 this Council held a noticed public hearing as required by law relative to the determination to proceed with the annexation of Annexation Area No. 14 (Lakeview Villas) into the District and the rate and method of apportionment and manner of collection of the special tax to be levied within Annexation Area No. 14 (Lakeview Villas) to finance certain public services; and WHEREAS, at said hearing all persons desiring to be heard on all matters pertaining to the annexation of Annexation Area No. 14 (Lakeview Villas) were heard and a full and fair hearing was held; and WHEREAS, the Council subsequent to said hearing adopted Resolution No. 2005 -117 determining the validity of prior proceedings relative to the annexation of Annexation Area No. 14 (Lakeview Villas), annexed Annexation Area No. 14 (Lakeview Villas) into the District and authorized the Ievy of a special tax within Annexation Area No. 14 (Lakeview Villas); and WHEREAS, the Council subsequent to said hearing adopted Resolution No. 2005 -118 which called an election within Annexation Area No. 14 (Lakeview Villas) for August 23, 2005 on the proposition of levying a special tax; and WHEREAS, on August 23, 2005 an election was held within each Annexation Area No. 14 (Lakeview Villas) in which the eligible electors approved by more than two - thirds vote the proposition of levying a special tax. AGENDA ITEM NO. 35 _ PAGE I GF__ _�% CITY COUNCIL ORDINANCE NO. 1158 Page 2 of 7 THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, ACTING AS THE LEGISLATIVE BODY OF CITY OF LAKE ELSINORE COMMUNITY FACILITIES DISTRICT NO. 2003 -1 (LAW ENFORCEMENT, FIRE AND PARAMEDIC SERVICES), DOES ORDAIN AS FOLLOWS: SECTION 1. A special tax is levied within the boundaries of Annexation Area No. 14 (Lakeview Villas) pursuant to the formula set forth in Exhibit "A" attached hereto and incorporated by reference in an amount necessary to finance a portion of the cost of providing law enforcement, fire and paramedic services that are in addition to those provided in the territory within Annexation Area No. 14 (Lakeview Villas) prior to the annexation of Annexation Area No. 14 (Lakeview Villas) into the District, periodic costs, and costs of the tax levy and collection. SECTION 2. This legislative body is hereby further authorized each year, by resolution adopted as provided in section 53340 of the Act, to determine the specific special tax rate and amount to be levied for the next fiscal year, except that the special tax rate to be levied shall not exceed the maximum rate set forth in Exhibit "A." SECTION 3. All of the collections of the special tax shall be used as provided for in the Act and Resolution No. 2005- of the Council. SECTION 4. The above authorized special tax shall be collected in the same manner as ordinary ad valorem taxes are collected and shall be subject to the same penalties and the same procedure and sale in cases of delinquency and provided for ad valorem taxes. SECTION 5. The Mayor shall sign this ordinance and the City Clerk shall attest to such signature. The City Clerk is directed to cause the title and summary or text of the this ordinance, together with the vote thereon, to be published within fifteen (15) days after its passage at least once in a newspaper of general circulation published and circulated within the territorial jurisdiction of the City, and to post at the main office of the City a certified copy of the full text of the adopted ordinance along with the names of the Council Members voting for and against the ordinance. SECTION 6. This Ordinance shall take effect thirty (30) days after the date of its final passage. The City Clerk shall certify as to adoption of this Ordinance and cause this Ordinance to be published and posted in the manner required by law. AGENDA ITEM NU. 35 _ PAGE o? GF_ CITY COUNCIL ORDINANCE NO. 1158 Page 3 of 7 INTRODUCED AND APPROVED UPON FIRST READING this 23 day of August, 2005. AYES: COUNCILMEMBERS: BUCKLEY, HICKMAN, KELLEY, SCHIFFNER, MAGEE NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: NONE ABSTAIN: COUNCILMEMBERS: NONE PASSED, APPROVED AND ADOPTED UPON SECOND READING this 13'h day of September, 2005 upon the following roll call vote: AYES: COUNCILMEMBERS: BUCKLEY, HICKMAN, KELLEY, SCHIFFNER, MAGEE NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: NONE ABSTAIN: COUNCILMEMBERS: NONE SECOND READING CONFIRMINED AND APPROVED FOR PUBLICATION this W' day of January 2006, upon the following roll call vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: ABSTAIN: COUNCILMEMBERS: Robert E. Magee, Mayor City of Lake Elsinore ACEIVDA ITEM IVO. '3 PACE 3 CITY COUNCIL ORDINANCE NO. 1158 Page 4 of 7 ATTEST: Frederick Ray, Deputy City Clerk City of Lake Elsinore APPROVED AS TO FORM: Barbara Zeid Leibold, City Attorney City of Lake Elsinore AGENDA ITEM NO. PAGE—_y 7 STATE OF CALIFORNIA ) )ss. COUNTY OF RIVERSIDE ) I, Frederick Ray, Deputy City Clerk of the City of Lake Elsinore, do hereby certify that the foregoing ordinance was duly adopted by the City Council of said City at a regular or adjourned regular meeting thereof held on the day of , 2005, and that it was so adopted by the following vote: AYES: NOES: ABSENT: ABSTAIN: ,11� M Frederick Ray, Deputy City Clerk City of Lake Elsinore AGENDA ITEM W . 36 PAGE 5, OF NOTICE OF ADOPTION OF ORDINANCE NO. 2005 -1158 NOTICE IS HEREBY GIVEN that on 2005, at the Council Chambers of the City of Lake Elsinore, 183 North Main Street, Lake Elsinore, California 92530, the City Council of the City of Lake Elsinore, in its capacity as the legislative body of the City of Lake Elsinore Community Facilities District No. 2003 -1 (Law Enforcement, Fire and Paramedic Services), held a public hearing and adopted Ordinance No. 1158. A summary of Ordinance No. 1158 follows and is marked as Exhibit "A ". At said time and place the testimony of all interested persons or taxpayers for or against said ordinance was heard. Ordinance No. 1158 was adopted by the following vote: AYES: NOES: ABSTAIN: ABSENT: CITY COUNCIL OF THE CITY OF LAKE ELSINORE, ACTING AS THE LEGISLATIVE BODY OF THE CITY OF LAKE ELSINORE COMMUNITY FACILITIES DISTRICT NO. 2003 -1 (LAW ENFORCEMENT, FIRE AND PARAMEDIC SERVICES) Dated: , 2005 By Frederick Ray, Deputy City Clerk AGENDA ITEM NO. PAGE_OF - EXHIBIT "A" BEFORE THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE IN ITS CAPACITY AS THE LEGISLATIVE BODY OF THE CITY OF LAKE ELSINORE COMMUNITY FACILITIES DISTRICT NO. 2003 -1 (LAW ENFORCEMENT, FIRE AND PARAMEDIC SERVICES) IN THE MATTER OF Authorizing the Levy of a Special Tax Within Annexation Area No. 14 (Lakeview Villas) Annexed to City of Lake Elsinore Community Facilities District No. 2003 -1 (Law Enforcement, Fire and Paramedic'Services) ORDINANCE NO. 2005 — 1158 SUMMARY The ordinance authorizes levy of an annual special tax within Annexation Area No. 14 (Lakeview Villas) annexed to City of Lake Elsinore Community Facilities District No. 2003 -1 (Law Enforcement, Fire and Paramedic Services) (the "District "), collected in the same manner as ordinary ad valorem taxes, in an amount necessary to finance a portion of the cost of providing law enforcement, fire and paramedic services that are in addition to those provided in the territory within Annexation Area No. 14 (Lakeview Villas) prior to the annexation of Annexation Area No. 14 (Lakeview Villas) to the District, which is necessary to meet increased demands placed upon the City as a result of development or rehabilitation occurring within Annexation Area No. 14 (Lakeview Villas). DATED: , 2005 CITY OF LAKE ELSINORE M Frederick Ray, Deputy City Clerk AGENDA ITEM PAGE_ ®F___ ORDINANCE NO. 1159 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE AUTHORIZING THE LEVY OF A SERVICES SPECIAL TAX AND A SPECIAL TAX. WHEREAS, on July 12, 2005, the City Council (the "Council ") of the City of Lake Elsinore (the "City ") adopted Resolution No. 2005 -64 stating its intention to form the City of Lake Elsinore Community Facilities District No. 2005 -4 (Lakeview Villas) (the "CFD ") pursuant to the Mello -Roos Community Facilities Act of 1982, as amended (the "Act "), to finance a portion of the cost of providing parks, open space and storm drains maintenance services (the "Services ") that are in addition to those provided in the territory within the CFD prior to the formation of the CFD, and to finance the purchase, construction, expansion or rehabilitation of certain real and other tangible property with an estimated useful life of five years or longer, including public infrastructure facilities and other governmental facilities, which the City is authorized by law to construct, own or operate (the "Facilities "); and WHEREAS, on July 12, 2005, the Council also adopted Resolution No. 2005 -65 stating its intention and the necessity to incur bonded indebtedness in the amount not to exceed $9,000,000 to be issued for the purpose of financing the purchase, construction, expansion or rehabilitation of the Facilities; and ,^ WHEREAS, notice was published as required by law relative to the intention of the Council to form the CFD and to incur bonded indebtedness in the amount not to exceed $9,000,000 within the boundaries of the CFD; and WHEREAS, on August 23, 2005, this Council held a noticed public hearing as required by law relative to the determination to proceed with the formation of the CFD, the rate and method of apportionment and manner of collection of the special tax to be levied within the CFD to pay for the Services and the rate and method of apportionment and manner of collection of the special tax to be levied within the CFD to pay the principal and interest on the proposed bonded indebtedness of the CFD, and relative to the necessity for authorizing the bonds, the purpose for which the bonds are to be issued, the amount of the proposed debt, the maximum term of the bonds and the maximum annual rate of interest to be paid; and WHEREAS, at said hearing all persons desiring to be heard on all matters pertaining to the formation of the CFD and the incurring of bonded indebtedness by the CFD were heard and a full and fair hearing was held; and WHEREAS, the Council subsequent to said hearing adopted Resolution No. 2005 -121 determining the validity of prior proceedings and established the CFD; and WHEREAS, the Council subsequent to said hearing adopted Resolution No. 2005 -122 which called an election within the CFD for August 23, 2005 on the AGENDA ITEIM NO. v�t'o PAGE OF_ CITY COUNCIL ORDINANCE NO. 1159 Page 2 of 5 proposition of incurring bonded indebtedness, levying a special tax and setting an appropriations limit; and %mor WHEREAS, on August 23, 2005, an election was held within the CFD in which the eligible electors approved by more than two - thirds vote the proposition of incurring bonded indebtedness, levying a special tax, and setting an appropriations limit. THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE DOES ORDAIN AS FOLLOWS: SECTION 1. A special tax (the "Services Special Tax ") is levied within the boundaries of the CFD pursuant to the formula set forth in Exhibit "A" attached hereto and incorporated by reference in an amount necessary to pay all of the costs of providing the Services, periodic costs, and costs of the tax levy and collection, and all other costs. SECTION 2. A special tax (the "Special Tax ") is levied within the boundaries of the CFD pursuant to the formulas set forth in Exhibit "A" attached hereto and incorporated by reference in an amount necessary to pay all of the costs of providing the Facilities, periodic costs, and costs of the tax levy and collection, and all other costs including amounts payable with respect to the bonded indebtedness. SECTION 3. This legislative body is hereby further authorized each year, by resolution adopted as provided in section 53340 of the Act, to determine the specific 1"101 special tax rate and amount to be levied for the then current or future tax years, except that the special tax rate to be levied shall not exceed the maximum rate set forth in Exhibit "A ". SECTION 4. All of the collections of the Services Special Tax and Special Tax shall be used as provided for in the Act and Resolution No. 2005- (Resolution of Formation). SECTION 5. The above authorized Services Special Tax and the Special Tax shall be collected in the same manner as ordinary ad valorem taxes are collected and shall be subject to the same penalties and the same procedure and sale in cases of delinquency and provided for ad valorem taxes; provided, however, the CFD may collect the Services Special Tax and the Special Tax at a different time or in a different manner if necessary to meet its financial obligations. SECTION 6. The Mayor shall sign this ordinance and the City Clerk shall attest to such signature. The City Clerk is directed to cause the title and summary or text of the this ordinance, together with the vote thereon, to be published within fifteen (15) days after its passage at least once in a newspaper of general circulation published and circulated within the territorial jurisdiction of the City, and to post at the main office of the City a certified copy of the full text of the adopted ordinance along with the names of the council Members voting for and against the ordinance. AGENDA ITEM Nib. 31,o PAGE a OF CITY COUNCIL ORDINANCE NO. 1159 Page 3 of 5 1^ SECTION 7. This Ordinance relating to the levy of the Services Special Tax and the Special Tax shall take effect thirty (30) days after the date of its final passage. INTRODUCED AND APPROVED UPON FIRST READING this 23rd day of August, 2005, upon the following roll call vote: AYES: COUNCILMEMBERS: BUCKLEY, HICKMAN, KELLEY, SCHIFFNER, MAGEE NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: NONE ABSTAIN: COUNCILMEMBERS: NONE PASSED, APPROVED AND ADOPTED UPON-SECOND READING this 13th day of September, 2005, upon the following roll call vote: AYES: COUNCILMEMBERS: BUCKLEY, HICKMAN, KELLEY, SCHIFFNER, MAGEE NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: NONE ABSTAIN: COUNCILMEMBERS: NONE SECOND READING CONFIRMINED AND APPROVED FOR PUBLICATION this 10th day of January 2006, upon the following roll call vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: ABSTAIN: COUNCILMEMBERS: Robert Magee, Mayor City of Lake Elsinore AGENDA ITEM NO. 3(0 PAGE 6 OF 6- CITY COUNCIL ORDINANCE NO. 1159 Page 4 of 5 ATTEST: Frederick Ray, Deputy City Clerk City of Lake Elsinore APPROVED AS TO FORM: Barbara Zeid Leibold, City Attorney City of Lake Elsinore AGENDA ITEM N0. 3(P PAGE Y OF 5 '"WO EXHIBIT "A" RATE AND METHOD OF APPORTIONMENT AGENDA � (p PAGES i� ORDINANCE NO. 1160 '^ AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, AMENDING THE DEFINITIONS PORTION OF CHAPTER 5.78 OF THE LAKE ELSINORE MUNICIPAL CODE REGARDING SIGNIFICANT PALM TREES WHEREAS, Chapter 5.78 of the Lake Elsinore Municipal Code establishes a mechanism to regulate the removal, destruction and relocation of certain species of palm trees within City limits; and WHEREAS, it is the purpose and intent of the City Council of the City of Lake Elsinore to amend and restate a portion of Section 5.78.020 to more accurately protect palm tree species of significance within the City limits. THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, ORDAINS AS FOLLOWS: SECTION 1: AMENDMENTS TO SECTION 5.78.020 That Subheading C of the definition of "Significant Palm(s)" contained in Section 5.78.020 of Chapter 5.78 of the Lake Elsinore Municipal Code is hereby amended and restated in its entirety as follows: "C. Reserved;" �` SECTION 2: SEVERABILITY If any provision, clause, sentence or paragraph of this ordinance or the application thereof to any person or circumstance shall be held invalid, such invalidity shall not affect the other provisions of this Ordinance and are hereby declared to be severable. SECTION 3: NOTICE OF ADOPTION The City Clerk shall certify as to adoption of the Ordinance and cause this Ordinance to be published and posted in the manner required by law. SECTION 4: EFFECTIVE DATE This Ordinance shall take effect thirty (30) days after the date of its passage. The City Clerk shall certify as to adoption of the Ordinance and cause this Ordinance to be published and posted in the manner required by law. AGENDA ITEM SOU. % PACE / OF 3 PASSED, UPON FIRST READING this 23rd day of August, 2005, by the following roll call vote: AYES: COUNCILMEMBERS: BUCKLEY HICKMAN KELLEY NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: ABSTAIN: COUNCILMEMBERS: SCHIFFNER, MAGEE NONE NONE NONE PASSED, APPROVED AND ADOPTED UPON SECOND READING this 13'h day of September, 2005, by the following roll call vote: AYES: COUNCILMEMBERS: BUCKLEY, HICKMAN, KELLEY, SCHIFFNER, MAGEE NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: NONE ABSTAIN: COUNCILMEMBERS: NONE SECOND READING CONFIRMINED AND APPROVED FOR PUBLICATION this 10'h day of January 2006, upon the following roll call vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: ABSTAIN: COUNCILMEMBERS: ATTEST: City Clerk Robert E. Magee, Mayor 2 AGENDA iTUA 37 PAGE__d�OF Gr1 APPROVED AS TO FORM: Barbara Zeid Leibold, City Attorney AGENDA ITEM NO. 3 PACE ®F �3- ORDINANCE NO. 1161 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ! LAKE ELSINORE, CALIFORNIA APPROVING SPECIFIC PLAN NO. 2004 -01 CHANGING THE ZONING DESIGNATION OF THE PROPERTY GENERALLY LOCATED NORTHWEST OF RIVERSIDE AVENUE, SOUTHEAST OF MACHADO STREET, AND NORTH OF GRAND AVENUE, BETWEEN ULLA AND TILLER LANES FROM R ->i SINGLE FAMILY RESIDENTIAL DISTRICT I AND R -2 MEDIUM DENSITY RESIDENTIAL DISTRICT TO SPECIFIC PLAN UNDER THt ZONING ORDINANCE WHEREAS, Bart I ornstein, has initiated proceedings to change the zoning designation of the subject property generally Iocated northwest of Riverside Avenue, southeast of Machado Street, and north of Grand Avenue, between Ulla and Tiller Lanes from R -1 Single Family Residential District and R -2 Medium Density Residential District to Specific Plan; an WHEREAS, the Pla ning Commission of the City of Lake Elsinore at a regular meeting held on July 19, 005 made its report upon the desirability of the proposed project and made its recommendations in favor of said Specific Plan No. 2004 -01 by adopting Planning Commi sion Resolution No. 2005 -89 recommending to the City Council approval of SpecifPlan No. 2004 -01; and WHEREAS, public ' notice of said application has been given, and the City Council has considered evid nce presented by the Community Development Department and other interested parties �,t a public hearing held with respect to this item on August 23, 2005. THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE DOES ORDAIN AS FOLLOWS: SECTION 1. The ity Council has considered the proposed Specific Plan No. 2004 -01, prior to making a decision to approve the proposed amendment to the Land Use Designation and establish a oning Designation. The City Council finds and determines that Mitigated Negative Dec aration No. 2005 -02 is adequate and prepared in accordance with the requirements of the California Environmental Quality Act (CEQA) which analyzes environmental effects of the proposed project and recommends City Council certification, based upon the following findings and determinations: AGENDA ITEM 1410 13'6 PAGE ®F- CITY COUNCIL ORDINANCE NO. 1161 Page 2 of 4 SPECIFIC PLAN NO. 2004-01 SECTION 2. That in accordance with State Planning and Zoning law and the City of Lake Elsinore the following findings for the approval of Specific Plan No. 2004- 01 have been made as follows: 1. The proposed zone change will not be; a) detrimental to the health, safety, comfort or general welfare of the persons residing or working within the neighborhood of the proposed amendment or within the City, or b) injurious to the property or improvements in the neighborhood or within the City. The proposed Zone Change has been analyzed relative to its potentiality to be detrimental to the health, safety, comfort and welfare of the persons. residing or working within the neighborhood of the proposed amendment. The primary issue -identified by staff relates to the traffic impacts of the proposed project. Staff, concluded, based on the Traffic Study, that the Level of Service for the intersections in the Study Area will not be degraded as a result of the mitigations and conditions of approval placed on this project as well as the ultimate goals and objectives of the General Plan Circulation Element. 2. The proposed action will be consistent with the Goals, Objectives, and `/ Policies of the General Plan and the development standards established with the Lake Elsinore Municipal Code (LEMC). Based on its analysis, staff has concluded that the requested Zone Change, allowing the development of the subject Specific Plan project is consistent with GOAL 1.0 of the General Plan Housing Element, obligating the City to provide "decent housing opportunities and a satisfying living environment for residents of Lake Elsinore ". SECTION 2. ZONING RECLASSIFICATION This Zoning Map of the City of Lake Elsinore, California, is hereby amended by changing, reclassifying and rezoning the following described property, to wit: generally located northwest of Riverside Avenue, southeast of Machado Street, and north of Grand Avenue, between Ulla and Tiller Lanes from R -1 Single Family Residential District and R -2 Medium Density Residential District to Specific Plan. ACMDA ITEM WO-1 -�g PACE __°.— OF ----�— CITY COUNCIL ORDINANCE NO. 1161 Page 3 of 4 SPECIFIC PLAN NO. 20Q4-01 Approval is based on the 1. The proposed Zoning is consistent with the Goals, Policies, and Objectives in the General Pl . 2. The proposed Zoning is consistent with the General Plan and the various land uses authorized by the Ordinance are compatible with the objectives, policies, general land uses, and programs specified in the Plan. (Government Code Section 65860). 3. Reasons why the City has considered the effect of Zoning Ordinances on the regional housing needs in which the City is located and how the City has balanced these needs against the public service needs of its residents and available fiscal and environmental resources. (Government Code Section 65863.6). SECTION 3. This Ordinance shall take effect thirty (30) days after the date of its final passage. The City Clerk shall certify as to adoption of this Ordinance and cause this Ordinance to be published and posted in the manner required by law. INTRODUCED AND APPROVED UPON FIRST READING this 23d day of August, 2005, upon the f�llowing roll call vote: AYES: COUNCILMEMBERS: BUCKLEY, HICKMAN, KELLEY, SCHIFFNER, MAGEE NOES: COUNCILMEMBERS: NONE ABSENT: COUNdILMEMBERS: NONE ABSTAIN: COUNCILMEMBERS: NONE ACENbA ITEM Nth. PAGE "F 7 CITY COUNCIL ORDINANCE NO. 1161 Page 4 of 4 SPECIFIC PLAN NO. 2004-01 PASSED, APPROVED AND ADOPTED UPON SECOND READING this 27th day of September, 2005, upon the following roll call vote: AYES: COUNCILMEMBERS: BUCKLEY, KELLEY, SCHIFFNER, MAGEE NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: HICKMAN ABSTAIN: COUNCILMEMBERS: NONE SECOND READING CONFIRMINED AND APPROVED FOR PUBLICATION this 10th day of January 2006, upon the following roll call vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: ABSTAIN: COUNCILMEMBERS: ATTEST: Frederick Ray, Deputy City Clerk City of Lake Elsinore APPROVED AS TO FORM: Barbara Zeid Leibold, City Attorney City of Lake Elsinore `400 Robert Magee, Mayor City of Lake Elsinore AGENDA ITEM Nd. -30 � PAGE -1 ®F ORDINANCE NO. 1162 ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE ACTING AS THE LEGISLATIVE BODY OF CITY OF LAKE ELSINORE COMMUNITY FACILITIES DISTRICT NO. 2003 -1 (LAW ENFORCEMENT, FIRE AND PARAMEDIC SERVICES) AUTHORIZING THE LEVY OF A SPECIAL TAX WITHIN ANNEXATION AREA NO. 13 (VILLAGES AT WASSON CANYON) ANNEXED TO SAID DISTRICT WHEREAS, on July 12, 2005, the City Council (the "Council ") of the City of Lake Elsinore, California (the "City ") adopted Resolution No. 2005 -64 stating its intention to annex certain property ( "Annexation Area No. 13 (Villages at Wasson Canyon) ") into City of Lake Elsinore Community Facilities District No. 2003 -1 (Law Enforcement, Fire and Paramedic Services) (the "District ") pursuant to the Mello -Roos Community Facilities Act of 1982, as amended, (the "Act "); and WHEREAS, notice was published as required by law relative to the intention of the Council to annex Annexation Area No. 13 (Villages at Wasson Canyon) into the District; and WHEREAS, on September 13, 2005 this Council held a noticed public hearing as required by law relative to the determination to proceed with the annexation of Annexation Area No. 13 (Villages at Wasson Canyon) into the District and the rate and method of apportionment and manner of collection of the special tax to be levied within Annexation Area No. 13 (Villages at Wasson Canyon) to finance certain public services; and WHEREAS, at said hearing all persons desiring to be heard on all matters pertaining to the annexation of Annexation Area No. 13 (Villages at Wasson Canyon) were heard and a full and fair hearing was held; and WHEREAS, the Council subsequent to said hearing adopted Resolution No. 2005 -134 determining the validity of prior proceedings relative to the annexation of Annexation Area No. 13 (Villages at Wasson Canyon), annexed Annexation Area No. 13 (Villages at Wasson Canyon) into the District and authorized the levy of a special tax within Annexation Area No. 13 (Villages at Wasson Canyon); and WHEREAS, the Council subsequent to said hearing adopted Resolution No. 2005 -135 which called an election within Annexation Area No. 13 (Villages at Wasson Canyon) for September 13, 2005 on the proposition of levying a special tax; and WHEREAS, on September 13, 2005 an election was held within each Annexation Area No. 13 (Villages at Wasson Canyon) in which the eligible electors approved by more than two - thirds vote the proposition of levying a special tax. AGENDA ITEM NCB. 3 9 PAGE / _ ®F_2 . CITY COUNCIL ORDINANCE NO. 1162 Page 2 of 4 NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, ACTING AS THE LEGISLATIVE BODY OF CITY OF LAKE ELSINORE COMMUNITY FACILITIES DISTRICT NO. 2003 -1 (LAW ENFORCEMENT, FIRE AND PARAMEDIC SERVICES), DOES ORDAIN AS FOLLOWS: SECTION 1. A special tax is levied within the boundaries of Annexation Area No. 13 (Villages at Wasson Canyon) pursuant to the formula set forth in Exhibit "A" attached hereto and incorporated by reference in an amount necessary to finance a portion of the cost of providing law enforcement, fire and paramedic services that are in addition to those provided in the territory within Annexation Area No. 13 (Villages at Wasson Canyon) prior to the annexation of Annexation Area No. 13 (Villages at Wasson Canyon) into the District, periodic costs, and costs of the tax levy and collection. SECTION 2. This legislative body is hereby further authorized each year, by resolution adopted as provided in section 53340 of the Act, to determine the specific special tax rate and amount to be levied for the next fiscal year, except that the special tax rate to be levied shall not exceed the maximum rate set forth in Exhibit "A." SECTION 3. All of the collections of the special tax shall be used as provided for in the Act and Resolution No. 2005- of the Council. SECTION 4. The above authorized special tax shall be collected in the same manner as ordinary ad valorem taxes are collected and shall be subject to the same penalties and the same procedure and sale in cases of delinquency and provided for ad valorem taxes. SECTION 5. The Mayor shall sign this ordinance and the City Clerk shall attest to such signature. The City Clerk is directed to cause the title and summary or text of the this ordinance, together with the vote thereon, to be published within fifteen (15) days after its passage at least once in a newspaper of general circulation published and circulated within the territorial jurisdiction of the City, and to post at the main office of the City a certified copy of the full text of the adopted ordinance along with the names of the Council Members voting for and against the ordinance. SECTION 6. This ordinance relating to the levy of the special tax takes effect and shall be in force from and after 30 days from the date of final passage. A copy of this ordinance shall be transmitted to the Clerk of the Board of Supervisors of Riverside County, the Assessor and the Treasurer -Tax Collector of Riverside County. r.rr► AGENDA ITEM NO PAGE d OF -7 CITY COUNCIL ORDINANCE NO. 1162 Page 3 of 4 ,... INTRODUCED AND APPROVED UPON FIRST READING this 13 day of September, 2005 AYES: COUNCILMEMBERS: BUCKLEY, HICKMAN, KELLEY, SCHIFFNER, MAGEE NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: NONE ABSTAIN: COUNCILMEMBERS: NONE PASSED, APPROVED AND ADOPTED UPON SECOND READING this 27 day of September, 2005, upon the following roll call vote: AYES: COUNCILMEMBERS: BUCKLEY, KELLEY, SCHIFFNER, MAGEE NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: HICKMAN ABSTAIN: COUNCILMEMBERS: NONE SECOND READING CONFIRMINED AND APPROVED FOR PUBLICATION this 10`h day of January 2006, upon the following roll call vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: ABSTAIN: COUNCILMEMBERS: By: Robert E. Magee, Mayor City of Lake Elsinore AGENDA ITEM W "' PACE_ ___0F_/- CITY COUNCIL ORDINANCE NO. 1162 Page 4 of 4 ATTEST: Frederick Ray, Deputy City Clerk City of Lake Elsinore APPROVED AS TO FORM: Barbara Zeid Leibold, City Attorney City of Lake Elsinore AGENDA ITEM ibis. %3q PACE OF - - AO-- STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE )ss. I, Frederick Ray, Deputy City Clerk of the City of Lake Elsinore, do hereby certify that the foregoing ordinance was duly adopted by the City Council of said City at a regular or adjourned regular meeting thereof held on the 27 day of September, 2005 and that it was so adopted by the following vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: ABSTAIN: COUNCILMEMBERS: RON BUCKLEY, KELLEY, SCHIFFNER, MAGEE NONE HICKMAN NONE Frederick Ray, Deputy City Clerk ACENim ITEM NO. --39 _ PAGE OF NOTICE OF ADOPTION OF ORDINANCE NO. 1162 NOTICE IS HEREBY GIVEN that on September 13, 2005, at the Council Chambers of the City of Lake Elsinore, 183 North Main Street, Lake Elsinore, California 92530, the City Council of the City of Lake Elsinore, in its capacity as the legislative body of the City of Lake Elsinore Community Facilities District No. 2003 -1 (Law Enforcement, Fire and Paramedic Services), held a public hearing and adopted Ordinance No. 1162. A summary of Ordinance No. 1162 follows and is marked as Exhibit "A ". At said time and place the testimony of all interested persons or taxpayers for or against said ordinance was heard. Ordinance No. 1162 was adopted by the following vote: AYES: COUNCILMEMBERS: BUCKLEY, KELLEY, SCHIFFNER, MAGEE NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: HICKMAN ABSTAIN: COUNCILMEMBERS: NONE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, ACTING AS THE LEGISLATIVE BODY OF THE CITY OF LAKE ELSINORE COMMUNITY FACILITIES DISTRICT NO. 2003 -1 (LAW ENFORCEMENT, FIRE AND PARAMEDIC SERVICES) Dated: , 2005 By. Frederick Ray, Deputy City Clerk .AGENDA ITEM NO. �9 PAGE._. (O c�F < N"We ..r EXHIBIT "A" BEFORE THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE IN ITS CAPACITY AS THE LEGISLATIVE BODY OF THE CITY OF LAKE ELSINORE COMMUNITY FACILITIES DISTRICT NO. 2003 -1 (LAW ENFORCEMENT, FIRE AND PARAMEDIC SERVICES) IN THE MATTER OF Authorizing the Levy of a Special Tax Within Annexation Area No. 13 (Villages at Wasson Canyon) Annexed to City of Lake Elsinore Community Facilities District No. 2003 -1 (Law Enforcement, Fire and Paramedic Services) ORDINANCE NO. 1162 SUMMARY The ordinance authorizes levy of an annual special tax within Annexation Area No. 13 (Villages at Wasson Canyon) annexed to City of Lake Elsinore Community Facilities District No. 2003 -1 (Law Enforcement, Fire and Paramedic Services) (the "District "), collected in the same manner as ordinary ad valorem taxes, in an amount necessary to finance a portion of the cost of providing law enforcement, fire and paramedic services that are in addition to those provided in the territory within Annexation Area No. 13 (Villages at Wasson Canyon) prior to the annexation of Annexation Area No. 13 (Villages at Wasson Canyon) to the District, which is necessary to meet increased demands placed upon the City as a result of development or rehabilitation occurring within Annexation Area No. 13 (Villages at Wasson Canyon). DATED: , 2005 CITY OF LAKE ELSINORE Frederick Ray, Deputy City Clerk r,E Die ITEM. W). _% 9._w ORDINANCE NO. 1163 ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE AUTHORIZING THE LEVY OF A SERVICES SPECIAL TAX AND A SPECIAL TAX WHEREAS, on July 12, 2005, the City Council (the "Council ") of the City of Lake Elsinore (the "City ") adopted Resolution No. 2005 -62 stating its intention to form the City of Lake Elsinore Community Facilities District No. 2005 -2 (Alberhill Ranch) (the "CFD ") pursuant to the Mello -Roos Community Facilities Act of 1982, as amended (the "Act "), to finance a portion of the cost of providing parks, open space and storm drains maintenance services (the "Services ") that are in addition to those provided in the territory within the CFD prior to the formation of the CFD, and to finance the purchase, construction, expansion or rehabilitation of certain real and other tangible property with an estimated useful life of five years or longer, including public infrastructure facilities and other governmental facilities, which the city is authorized by law to construct, own or operate (the "Facilities "), and designating portions of the CFD as Improvement Area A, Improvement Area B and Improvement Area C; and WHEREAS, on July 12, 2005, the Council also adopted Resolution No. 2005 -63 stating its intention and the necessity to incur bonded indebtedness in the amount of not to exceed $28,000,000, $36,000,000 and $26,000,000 for Improvement Area A, Improvement Area B and Improvement Area C, respectively, to be issued for the purpose of financing the purchase, construction, expansion or rehabilitation of the Facilities; and WHEREAS, notice was published as required by law relative to the intention of the Council to form the CFD and to incur bonded indebtedness in the amount not to exceed $28,000,000, $36,000,000 and $26,000,000 within the boundaries of Improvement Area A, Improvement Area B and Improvement Area C, respectively, of the CFD; and WHEREAS, on August 23, 2005, which was then continued to September 13, 2005, this Council held a noticed public hearing as required by law relative to the determination to proceed with the formation of the CFD, the rate and method of apportionment and manner of collection of the special tax to be levied within the CFD to pay for the Services and the rate and method of apportion and manner of collection of the special tax to be levied within each Improvement Area to pay the principal and interest on the proposed bonded indebtedness of each Improvement Area of the CFD, and relative to the necessity for authorizing the bonds, the purpose for which the bonds are to be issued, the amount of the proposed debt, the maximum term of the bonds and the maximum annual rate of interest to be paid; and WHEREAS, at said hearing all persons desiring to be heard on all matters pertaining to the formation of the CFD and the incurring of bonded indebtedness by each AGENDA Ef ElvI W0.� PAGE.. / AF, -„,La.— CITY COUNCIL ORDINANCE NO. 1163 Page 2 of 4 of the Improvement Areas of the CFD were heard and a full and fair hearing was held; and WHEREAS, the Council subsequent to said hearing adopted Resolution No. 2005 -138 determining the validity of prior proceedings and established the CFD; and WHEREAS, the Council subsequent to said hearing adopted Resolution No. 2005 -139 which called an election within the CFD for September 13, 2005 on the proposition of incurring bonded indebtedness, levying a special tax and setting an appropriations limit; and WHEREAS, on September 13, 2005, an election was held within the CFD in which the eligible electors approved by more than two- thirds vote the proposition of incurring bonded indebtedness, levying a special tax, and setting an appropriations limit; THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE DOES ORDAIN AS FOLLOWS: SECTION 1. A special tax (the "Services Special Tax ") is levied within the boundaries of the CFD pursuant to the formula set forth in Exhibit "A" attached hereto and incorporated by reference in an amount necessary to pay all of the costs of providing the Services, periodic costs, and costs of the tax levy and collection, and all other costs. SECTION 2. A special tax (the "Special Tax ") is levied within the boundaries of each Improvement Area of the CFD pursuant to the formulas set forth in Exhibit "A" attached hereto and incorporated by reference in an amount necessary to pay all of the costs of providing the Facilities, periodic costs, and costs of the tax levy and collection, and all other costs including amounts payable with respect to the bonded indebtedness. SECTION 3. This legislative body is hereby further authorized each year, by resolution adopted as provided in section 53340 of the Act, to determine the specific special tax rate and amount to be levied for the then current or future tax years, except that the special tax rate to be levied shall not exceed the maximum rate set forth in Exhibit "A ". SECTION 4. All of the collections of the Services Special Tax and Special Tax shall be used as provided for in the Act and Resolution No. 2005 -138 of the Council (Resolution of Formation). SECTION 5. The above authorized Services Special Tax and the Special Tax shall be collected in the same manner as ordinary ad valorem taxes are collected and shall be subject to the same penalties and the same procedure and sale in cases of delinquency and provided for ad valorem taxes; provided, however, the CFD may collect the Services AGENDA ITEMo.___ _•_ _ _ — PAGE____ �� cm CITY COUNCIL ORDINANCE NO. 1163 Page 3 of 4 Special Tax and the Special Tax at a different time or in a different manner if necessary to meet its financial obligations. SECTION 6. The Mayor shall sign this ordinance and the City Clerk shall attest to such signature. The City Clerk is directed to cause the title and summary or text of the this ordinance, together with the vote thereon, to be published within fifteen (15) days after its passage at least once in a newspaper of general circulation published and circulated within the territorial jurisdiction of the City, and to post at the main office of the City a certified copy of the full text of the adopted ordinance along with the names of the council Members voting for and against the ordinance. SECTION 7. This ordinance relating to the levy of the services special tax and the Special Tax takes effect and shall be in force from and after 30 days from the date of final passage. A copy of this ordinance shall be transmitted to the Clerk of the Board of Supervisors of Riverside County, the Assessor and the Treasurer -Tax Collector of Riverside County. - INTRODUCED AND APPROVED UPON FIRST READING this 13 day of September, 2005, upon the following roll call vote: AYES: COUNCILMEMBERS NOES: COUNCILMEMBERS ABSENT: COUNCILMEMBERS ABSTAIN: COUNCILMEMBERS: BUCKLEY, HICKMAN, KELLEY, SCHIFFNER, MAGEE NONE NONE NONE AGENDA ITEM No. YO PACE 13 CITY COUNCIL ORDINANCE NO. 1163 Page 4 of 4 PASSED, APPROVED AND ADOPTED UPON SECOND READING this 27 day of September, 2005, upon the following roll call vote: AYES: COUNCILMEMBERS: BUCKLEY, KELLEY, SCHIFFNER, MAGEE NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: HICKMAN ABSTAIN: COUNCILMEMBERS: NONE SECOND READING CONFIRMINED AND APPROVED FOR PUBLICATION this 10th day of January 2006, upon the following roll call vote: AYES:. COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: ABSTAIN: COUNCILMEMBERS: S...o Robert Magee, Mayor City of Lake Elsinore .,0001 AGENDA ITEM NO, - O PAGE_____- -�F—__ �2 __-= CITY COUNCIL ORDINANCE NO. 1163 Page 5 of 4 A^ ATTEST: Frederick Ray, Deputy City Clerk City of Lake Elsinore APPROVED AS TO FORM: Barbara Zeid Leibold, City Attorney City of Lake Elsinore (SEAL) AGENDA ITEM Putt. qG PACE��pF EXHIBIT "A" RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX (IMPROVEMENT AREA A) (IMPROVEMENT AREA B) (IMPROVEMENT AREA C) AGENDA IILiv, -- ©- *"00 PAGE ja--_OiF &_ ORDINANCE NO. 1164 ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE AUTHORIZING THE LEVY OF A SPECIAL TAX WHEREAS, on July 26, 2005, the City Council (the "Council ") of the City of Lake Elsinore (the "City ") adopted Resolution No. 2005 -76 stating its intention to form the City of Lake Elsinore Community Facilities District No. 2005 -6 (City Center Townhomes) (the "CFD ") pursuant to the Mello -Roos Community Facilities Act of 1982, as amended (the "Act "), to finance the purchase, construction, expansion or rehabilitation of certain real and other tangible property with an estimated useful life of five years or longer, including public infrastructure facilities and other governmental facilities, which the City is authorized by law to construct, own or operate (the "Facilities "); and WHEREAS, on July 26, 2005, the Council also adopted Resolution No. 2005 -77 stating its intention and the necessity to incur bonded indebtedness in the amount not to exceed $5,000,000 to be issued for the purpose of financing the purchase, construction, expansion or rehabilitation of the Facilities; and WHEREAS, notice was published as required by law relative to the intention of the Council to form the CFD and to incur bonded indebtedness in the amount not to exceed $5,000,000 within the boundaries of the CFD; and WHEREAS, on September 13, 2005, this Council held a noticed public hearing as required by law relative to the determination to proceed with the formation of the CFD, the rate and method of apportionment and manner of collection of the special tax to be levied within the CFD to pay the principal and interest on the proposed bonded indebtedness of the CFD, and relative to the necessity for authorizing the bonds, the purpose for which the bonds are to be issued, the amount of the proposed debt, the maximum term of the bonds and the maximum annual rate of interest to be paid; and WHEREAS, at said hearing all persons desiring to be heard on all matters pertaining to the formation of the CFD and the incurring of bonded indebtedness by the CFD were heard and a full and fair hearing was held; and WHEREAS, the Council subsequent to said hearing adopted Resolution No. 2005 -141 (the "Resolution of Formation ") determining the validity of prior proceedings and established the CFD; and WHEREAS, the Council subsequent to said hearing adopted Resolution No. 2005 -142 which called an election within the CFD for September 13, 2005 on the proposition of incurring bonded indebtedness, levying a special tax and setting an appropriations limit; and AGENDA ITEM NO. W _ PAGE___�__OF 3 CITY COUNCIL ORDINANCE NO. 1164 Page 2 of 5 WHEREAS, on September 13, 2005, an election was held within the CFD in which the eligible electors approved by more than two - thirds vote the proposition of incurring bonded indebtedness, levying a special tax, and setting an appropriations limit. THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE DOES ORDAIN AS FOLLOWS: SECTION 1. A special tax (the "Special Tax ") is levied within the boundaries of the CFD pursuant to the formulas set forth in Exhibit "A" attached hereto and incorporated by reference in an amount necessary to pay all of the costs of providing the Facilities, periodic costs, and costs of the tax levy and collection, and all other costs including amounts payable with respect to the bonded indebtedness. SECTION 2. This legislative body is hereby further authorized each year, by resolution adopted as provided in section 53340 of the Act, to determine the specific special tax rate and amount to be levied for the then current or future tax years, except that the special tax rate to be levied shall not exceed the maximum rate set forth in Exhibit "A ". SECTION 3. All of the collections of the Special Tax shall be used as provided for in the Act and Resolution of Formation. SECTION 5. The above authorized Special Tax shall be collected in the same ,"No, manner as ordinary ad valorem taxes are collected and shall be subject to the same penalties and the same procedure and sale in cases of delinquency and provided for ad valorem taxes; provided, however, the CFD may collect the Special Tax at a different time or in a different manner if necessary to meet its financial obligations. SECTION 6. The Mayor shall sign this ordinance and the City Clerk shall attest to such signature. The City Clerk is directed to cause the title and summary or text of the this ordinance, together with the vote thereon, to be published within fifteen (15) days after its passage at least once in a newspaper of general circulation published and circulated within the territorial jurisdiction of the City, and to post at the main office of the City a certified copy of the full text of the adopted ordinance along with the names of the council Members voting for and against the ordinance. SECTION 7. This ordinance relating to the levy of the Special Tax takes effect and shall be in force from and after 30 days from the date of final passage. A copy of this ordinance shall be transmitted to the Clerk of the Board of Supervisors of Riverside County, the Assessor and the Treasurer -Tax Collector of Riverside County. AGENDA ITENi PAGE d 0 F_ CITY COUNCIL ORDINANCE NO. 1164 Page 3 of 5 00�- INTRODUCED AND APPROVED UPON FIRST READING this 13 day of September, 2005, upon the following roll call vote: AYES: COUNCILMEMBERS: HICKMAN, KELLEY, SCHIFFNER, MAGEE NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: BUCKLEY ABSTAIN: COUNCILMEMBERS: NONE PASSED, APPROVED AND ADOPTED UPON SECOND READING this 27 day of September, 2005, upon the following roll call vote: AYES: COUNCILMEMBERS: BUCKLEY, KELLEY, SCHIFFNER, MAGEE �.., NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: HICKMAN ABSTAIN: COUNCILMEMBERS: NONE SECOND READING CONFIRMINED AND APPROVED FOR PUBLICATION this I0`" day of January 2006, upon the following roll call vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: ABSTAIN: COUNCILMEMBERS: Robert Magee, Mayor City of Lake Elsinore AGENDA IYEwr PAGE t5 _OF CITY COUNCIL ORDINANCE NO. 1164 Page 4 of 5 ATTEST: Frederick Ray, Deputy City Clerk City of Lake Elsinore APPROVED AS TO FORM: Barbara Zeid Leibold, City Attorney City of Lake Elsinore AQLNUA PAGE__�L.oF. - r1 r EXHIBIT "A" RATE AND METHOD OF APPORTIONMENT U! iSEM 5 Of N�- PpGE--- ORDINANCE NO. 2005- 1166 A ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, APPROVING AMENDMENT NO. 8 TO THE EAST LAKE SPECIFIC PLAN NO. 93 -3, LOCATED SOUTH OF MISSION TRAIL, WEST OF, CORYDON STREET, NORTH OF COMO STREET AND EAST OF THE PROPOSED JOHN 'LAING HOMES PROJECT, AND KNOWN AS ASSESSOR'S PARCEL NOS. 370- 020 -003; 370 -030 -004, -006, AND 412; 370- 040 -036 THRU —038; 370 -0700 -0017 -002, -004 THRU —006, AND —010; 370- 080 -009 AND -010. WHEREAS, an application has been filed with the City of Lake Elsinore by Lumos Communities LLC to amend the East Lake Specific Plan No. 93 -3; and WHEREAS, the Planning Commission of the City of Lake Elsinore at a regular meeting held on December 6, 2005, considered Amendment No. 8 to the East Lake Specific Plan No. 93 -3. However, the Commission failed to make its recommendation in favor or against the approval of Amendment No. 8 to the East Lake Specific Plan No. 93- 3; and WHEREAS, public notice of said application has been given, and the City Council has considered evidence presented by the Community Development Department and other interested parties at a public hearing held with respect to this item on December ` 6, 2005; NOW THEREFORE, the City Council of the City of Lake Elsinore DOES HEREBY RESOLVE as follows: SECTION 1. The City Council has considered the proposed Amendment No. 8 to the East Lake Specific Plan No. 93 -3 prior to making a decision..Pursuant to Section 21080 (c)(2) of the California Environmental Quality Act (CEQA), the City Council finds and determines that the Supplemental Environmental Impact Report for Waterbury (SCH #2005061033) is adequate and prepared in accordance with the requirements of CEQA which analyzes environmental effects of the proposed project. SECTION 2. That in accordance with State Planning and Zoning law and Chapter 17.99 (Specific Plan District) of the Lake Elsinore Municipal Code the following findings for the approval of Amendment No. 8 to the East Lake Specific Plan No. 93 -3 have been made as follows: 1. The location and design of the proposed development is consistent with the goals and policies of the City's General Plan and with any other applicable plan or policies adopted by the City, or in the process of being prepared and adopted. 7 Yd AGENDA ITEM NO. OF PAGE _... ORDINANCE NO. 2005- AMENDMENT NO. 8 TO EAST LAKE SP 93 -3 _ DECEMBER 6, 2005 ../ PAGE 3 OF 4 4. The Final Specific Plan shall identify a methodology to allow land uses to be adequately serviced by existing or proposed public facilities and services. a. The proposed Amendment has been reviewed and conditioned to provide adequate public services to the site. b. The proposed Amendment provides a recreation center, a five -acre lake, neighborhood parks, pedestrian pathways, bike lanes and open space for its residents. 5. The overall design of the Specific Plan Amendment shall produce an attractive, efficient and stable development. a. The proposed Amendment will allow the construction of compatible residential units in a design that promotes neighborhood identity. Design Guidelines have been included to establish a consistent design expression among site planning, architectural and landscaping components while allowing reasonable flexibility in design. b. The proposed Amendment will provide recreational. amenities and natural open space for its residents, promoting an environmentally sensitive open space /recreationally oriented community as envisioned in the East Lake Specific Plan. 6. In accordance with the requirements of the California Environmental Quality Act (CEQA), impacts have been reduced to a level of non- significance or in the case where impacts remain, a Statement of Overriding Considerations is recommended for adoption to justify the merits of project implementation. SECTION 3: This Ordinance shall take effect thirty (30) days after the date of its final passage. The City Clerk shall certify as to adoption of this Ordinance and cause this Ordinance to be published and posted in the manner required by law. NOW, THEREFORE, based on the above findings, the City Council of the City of Lake Elsinore DOES HEREBY APPROVE Amendment No. 8 to the East Lake Specific Plan No. 93 -3, subject to Conditions of Approval, based upon Exhibit `F'. AGENDA ITEM NO. PAGE OF ORDINANCE NO. 2005- AMENDMENT NO.8 TO EAST LAKE SP 93 -3 DECEMBER 13, 2005 PAGE 4 OF 4 INTRODUCED AND APPROVED U December 2005 by the following roll call vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: ABSTAIN: COUNCILMEMBERS: PON FIRST READING this 13`x' day of BUCKLEY, HICKMAN, KELLEY, MAGEE, SCHIFFNER NONE NONE NONE PASSED, APPROVED AND ADOPTED UPON SECOND READING this_th day of- 2006, upon the following roll call vote:, AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: ABSTAIN: COUNCILMEMBERS: ATTEST: Frederick Ray, City Clerk APPROVED AS TO FORM: Barbara Leibold, City Attorney (SEAL) Robert E. Magee, Mayor City of Lake Elsinore "*N PnE ` 4 OF CITY OF LAKE ELSINORE REPORT TO CITY COUNCIL ...► TO: MAYOR AND CITY COUNCIL FROM: ROBERT A. BRADY, CITY MANAGER DATE: JANUARY 10, 2006 SUBJECT: ADOPTION OF A CONSTRUCTION AND DEMOLITION RECYCLING ORDINANCE BACKGROUND The California Integrated Waste Management Act of 1989 (AB 939) required each local jurisdiction to divert 50% of their waste stream from the landfill by the year 2000. The Act also imposed penalties of up to $10,000 per day for those jurisdictions that were non - compliant. As of the year 2000 deadline, the City of Lake Elsinore's diversion rate was 48% and the California Integrated Waste Management Board ( CIWMB) was satisfied with our "good faith" effort. With the assistance of CR &R, Inc., the city had all of the required recycling programs operational and many of the optional programs were either operational or in process. Since 2002, Lake Elsinore's diversion rate has slowly decreased to 42 %. Much of the decrease is due to the immense amount of new construction in Lake Elsinore both residential and commercial. The CIWMB has noted that many of the cities in the county, that are experiencing rapid growth, are also showing decreases in their diversion rates. Last year Lake Elsinore applied for and was granted a SB 1066 Time Extension to work with CR &R to implement programs to bring the diversion rate back into the 48% to 50% region. The CIWMB now requires each jurisdiction that applied for a SB 1066 Time Extension to adopt a Construction and Demolition Recycling Ordinance. On September 29, 2005 the Recreation/Tourism Manager met with the City Manager, the Community Development Director, staff from WRCOG and David Fahiron from CR &R to discuss the required ordinance. On October 12, 2005 the Recreation /Tourism Manager met with the Community Development Director to ..s AGENDA ITE- i 111©. � 3 PACE % OF-14� REPORT TO CITY COUNCIL 00-- JANUARY 10, 2006 PAGE 2 prepare a draft C & D ordinance. This draft was submitted to the City Attorney for review. DISCUSSION Since construction and demolition waste materials currently represent a significant portion of the waste stream going into the landfill, the recycling of these materials is essential to further the City's efforts to comply with AB 939 requirements. Currently, the standard Conditions of Approval, produced by the Planning Department for each project, include a condition regarding the disposal and the recycling of construction and demolition waste. This condition states that the applicant MUST contract with the city's franchised hauler, CR &R, for waste disposal. The condition also states that the applicant SHOULD contract with CR &R for all recycling needs; however, they may recycle the materials on their own or have a recycling company haul the materials off at NO CHARGE to the applicant. In both instances, the applicant must provide weight tickets and location information, from all recycled materials, to the city. The current condition does not require that a specific percentage of the material be recycled nor does it list any penalty that will be applied should the applicant fail to recycle. The proposed Construction and Demolition ordinance will require each applicant to divert at least 50% of their waste stream. It will also require each applicant to submit a diversion security deposit in the amount of three percent (3%) of the estimated project costs or $10,000, whichever is greater. Prior to the issuance of any grading and/or building permit, each applicant must submit a Waste Management Plan to the Recycling Coordinator. This plan will include information on how the applicant plans to divert the required 50% of their materials. Within thirty (30) days after the completion of the project, the applicant is required to submit to the Recycling Coordinator any documentation showing the applicant's compliance with the diversion requirements for the project. Any projects for which a permit has been issued prior to the effective date of this ordinance will not be subject to the requirements of the ordinance, however, recycling of the C & D materials will still be required by their Conditions of �-� Approval. ACENDA ITEM N®. y3 PACE o2 OF—/O- REPORT TO CITY COUNCIL JANUARY 10, 2006 PAGE 3 FISCAL IMPACT No fiscal impact to the city at this time. RECOMMENDATION City Council approve the Construction and Demolition Diversion Ordinance as required by the California Integrated Waste Management Board. PREPARED BY: 0=�AA, AI?2 V TERI FAZZIO, RE ATION/YbURISM MANAGER REVIEWED BY: APPROVED FOR AGENDA BY: , DIRECTOR OV COMMUNITY SERVICES AGENDA iTUA Nt3.___-TJ PACE 3 OF 1 a Lwn ORDINANCE NO. jt_�J � AN ORDINANCE OF THE CITY OF LAKE ELSINORE ADDING CHAPTER 14.12 TO TITLE 14 of THE LAKE ELSINORE MUNICIPAL CODE ESTABLISHING A REQUIREMENT TO SUBMIT AND COMPLY WITH A WASTE MANAGEMENT PLAN FOR CERTAIN CONSTRUCTION AND DEMOLITION PROJECTS WITHIN THE CITY OF LAKE ELSINORE WHEREAS, the California Integrated Waste Management Act of 1989, commonly referred to as Assembly Bill 939 ( "AB 939" or the "Act "), codified in substantial part at Public Resources Code Section 40000 et seq., requires each local jurisdiction in the state to divert fifty percent (50 %) of discarded materials from disposal in landfills and transformation facilities, and authorizes the California Integrated Waste Management Board ( "CIWMB ") to impose penalties of up to $10,000 per day for non - compliance with these diversion requirements; WHEREAS, certain provisions of the Act, codified at Public Resources Code Section 41821, require the City to provide CIWMB with an annual report concerning the City's progress in meeting the diversion requirements with respect to construction and demolition materials; WHEREAS, certain provisions of the Act, codified at Public Resources Code Section 41850, require CIWMB to take into consideration whether the City has adopted an ordinance requiring diversion of construction and demolition materials, or made other good faith efforts to meet the diversion requirements with respect to construction and demolition materials, in determining whether to impose penalties on the City for failure to meet the diversion requirements; WHEREAS, construction and demolition materials currently represent a significant portion of the volume of waste originating in the City of Lake Elsinore, and the experiences of other cities and studies undertaken by the CIWMB Board have shown that, except in unusual circumstances, it is feasible to divert at least 50% of all construction and demolition materials from landfills by engaging in reuse and recycling of these materials; WHEREAS, the reuse and recycling of construction and demolition materials is essential to further the City's efforts to reduce waste and comply with AB 939 diversion requirements; WHEREAS, waste reduction, reuse, and recycling of construction and demolition materials reduces the amount of construction and demolition materials transported for disposal in landfills and transformation facilities, increases site and worker safety, and are cost effective; AGENDA ITEM rev. y 3 PACE__ F 1 a, CITY COUNCIL ORDINANCE NO. Page 2 of 9 WHEREAS, to ensure compliance with this Chapter and to ensure that those contractors that comply with this Chapter are not placed at a competitive disadvantage, it is necessary to impose a diversion security deposit requirement; WHEREAS, pursuant to California Constitution Article XI, Section 7 and Public Resources Code Section 40059, the City has the authority to regulate solid waste generated within the City's municipal boundaries; and WHEREAS, the City Council has determined that the public health, safety and welfare of the residents of the City will be promoted and the environmental quality of the City and surrounding areas will be preserved and maintained through the adoption of an ordinance requiring diversion of construction and demolition materials from landfills. THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE DOES ORDAIN AS FOLLOWS: SECTION 1. Chapter 14.12 is hereby added to Title 14 of the Lake Elsinore Municipal Code to read as follows: Chapter 14.12 CONSTRUCTION AND DEMOLITION WASTE MANAGEMENT Sections: 14.12.010 Purpose and intent 14.12.020 Definitions 14.12.030 Covered projects 14.12.040 Projects exempt from this chapter 14.12.050 Compliance and diversion rates 14.12.060 Submission of waste management plan 14.12.070 Security deposit 14.12.080 Review of waste management plan 14.12.090 Compliance review and refund of security deposit 14.12.100 Violations — penalty established 14.12.010 Purpose and intent. The purpose and intent of this ordinance is to reduce the amount of waste generated within the City of Lake Elsinore and ultimately disposed of in landfills, by requiring the project applicant for every project covered by this ordinance to divert a minimum of fifty percent (50 %) of the construction and demolition debris resulting from that project, in compliance AGENDA ITEM N0. `13 CITY COUNCIL ORDINANCE NO. Page 3 of 9 with state and local statutory goals and policies, and to create a mechanism to secure compliance with the stated diversion requirements. 14.12.020 Definitions. For purposes of this Chapter, the following terms, phrases, words, and derivations shall have the meaning given in this section. "Applicant" means any individual, firm, limited liability company, association, partnership, political subdivision, government agency, municipality, industry, public or private corporation, or any other entity whatsoever who applies to the City for any permit, as defined in this Chapter, and who is, therefore, responsible for meeting the requirements of this Chapter. "Completion" means the earliest of the following dates: the date a temporary certificate of occupancy is issued by the City for a project, the date a certificate of occupancy is issued by the City for a project, or the date the final City inspection approving the project is completed. "Construction" means the building or enlargement of any structure, or any portion thereof, and includes without limitation alterations or improvements to an existing structure. ,-� "Construction and demolition material" means the excess or discarded material that is removed from a site during or after the construction or demolition of any structure, fence, wall, or paving. "Conversion rate" means the rate set forth in the standardized conversion rate table for use in estimating the volume or weight of construction and demolition debris, approved by the California Integrated Waste Management Board ( "CIWMB "). "Covered project" means any project meeting the thresholds established in Section 14.12.030. "Demolition" means the razing, tearing down, or wrecking of any structure, wall, fence, or paving, whether in whole or in part, whether interior or exterior. "Diversion requirement" means the diversion of a minimum of 50% of the total construction and demolition material generated by a project, or the lower percentage requirement granted by exception pursuant to Section 14.12.040. "Divert" or "diversion" mean the recycling and/or reuse of construction and demolition debris to avoid disposal in a landfill. AGENDA ITEM NO--- PAOF,_�4F / CITY COUNCIL ORDINANCE NO. Page 4 of 9 "Excavation" means digging or removing soil, rocks, gravel, and/or sand from a site; including but not limited to such work as is customarily performed in construction of buildings or dredging or construction of canals, drainage basins, waterways, lakes, levees, or dams. "Mining" means any activity governed by the Surface Mining and Reclamation Act (Public Resources Code § 2710, et seq. ). "Paving" means driveways, walkways, parking areas, streets, and sidewalks. "Permit" means any grading, building, or demolition permit. "Project" means any proposal for new or changed use, or for new construction, alteration or enlargement of any structure, that requires a permit from the City. "Recycling and reuse" means the process of collecting, sorting, cleansing, treating, and reconstituting construction and demolition debris, that would otherwise become solid waste and be disposed of in a landfill, for use as raw material for, new, reused, or reconstituted products which meet the quality standards necessary to be used in the marketplace. ..r "Recycling Coordinator" means the person designated by the City Manager to serve as the City's Recycling Coordinator for purposes of this chapter. "Structure" means anything constructed or erected that requires a location in the ground, including a building or swimming pool, but not including a fence or wall used as a fence, or driveways, or walkways. "Waste management plan" means a plan describing the amount of construction and demolition material to be produced by or removed from a project, and establishing methods by which 50% of such material will be diverted. 14.12.030 Covered projects. Projects meeting any of the following criteria shall be considered covered projects and shall comply with all provisions of this Chapter, including but not limited to the diversion requifement for construction and demolition materials: floor area; 1. Residential additions of 1,500 square feet or more of gross 2. New detached single family residential dwellings; PAc?__4___OF—L& .e-1 CITY COUNCIL ORDINANCE NO. Page 5 of 9 3. New attached single family residential dwellings; 4. Tenant improvements affecting 1,500 square feet or more of gross floor area; 5. New commercial buildings; 6. Demolition of 1,000 square feet or more of gross floor area; 7. Excavation, mining, or grading activities that result in the export of earth, soil, rocks, gravel, or other materials off the project site. 8. All City public works and City public construction projects; the waste management plan and diversion security deposit shall be prepared and submitted by the prime contractor constructing. each such project. 14.12.040 Projects exempt from this chapter. Projects meeting any of the following criteria shall be exempt from the requirements of this Chapter, provided that the applicant has provided the City with satisfactory evidence supporting the claimed exemption, and provided that the City has issued a written determination of exemption, which may take the form of a stamp or other notation of exemption on applicant's application for a permit: 1. Projects not meeting any of the criteria described in Section 14.12.030; 2. Immediate or emergency construction, repair, or demolition work required to protect the public health or safety in an emergency, as defined in Section 21060.3 of the Public Resources Code, as it may be amended from time to time; 3. Work for which a permit is not required by this Municipal Code; 4. A project for which a permit has been issued prior to the effective date of this ordinance and remains in effect at the time of construction; 5. A City project for which the notice inviting bids has been published prior to the effective date of this ordinance; that: 6. Excavation of residential swimming pools; 7. Projects in which the Recycling Coordinator has determined AGENDA ITE41. No. q2 _ pA Cr, OF�-_— CITY COUNCIL ORDINANCE NO. Page 6 of 9 a. There are exceptional or extraordinary circumstances applicable to the project that do not apply generally to similar projects, such as `.No` contamination of construction and demolition materials by hazardous substances or low recyclability of specific materials to be used in or removed from the project; b. Granting the application will not constitute a grant of special privilege inconsistent with limitations imposed on similar projects; and C. Cost to the applicant of strict compliance with the requirements of this Chapter is not the primary reason for granting the exemption. 14.12.050 Compliance and diversion rates. The applicant for a covered project shall divert or cause to be diverted a minimum of 50% of the construction and demolition materials resulting from the project. Compliance with this requirement and the other provisions of this Chapter shall be listed as a condition of approval on permits issued for a covered project. 14.12.060 Submission of waste management plan. The applicant for each covered project shall complete and submit to the City a waste management plan as part of the application packet for a permit, and payment of any application fee established by resolution of the City Council. The waste management plan shall include the estimated volume and weight of construction and demolition material, with separate listings for each type of material (unless waived by the Recycling Coordinator upon the applicant's demonstrates that he or she will use the services of the solid waste hauler holding an exclusive solid waste franchise with the City), the vendor or facility that will collect or receive the construction and demolition material and the estimated commencement date for the demolition or construction work. 14.12.070 Security deposit. Each applicant requesting a permit for a covered project shall submit, in conjunction with the waste management plan, a diversion security deposit, in cash, certified or cashiers' check, or by irrevocable letter of credit or performance bond, in the amount of three percent (3 %) of the estimated project costs, or $10,000, whichever is greater. The Recycling Coordinator may waive or reduce diversion security deposit requirement if the applicant demonstrates that he or she will use the services of the solid waste hauler holding an exclusive solid waste franchise with the City. 14.12.080 Review of waste management plan. A. Following submission of the waste management plan, and prior to the issuance of any grading and/or building permit, the Recycling Coordinator PAGC� 1 cif - CITY COUNCIL ORDINANCE NO. Page 7 of 9 shall review and determine (i) that the waste management plan provides all of the Ao�- information required by Section 14.12.060; (ii) the waste management plan indicates that at least 50% of the construction and demolition material produced by the project will be diverted, and the applicant has complied with Section 14.12.070. B. If the Recycling Coordinator approves the waste management plan, he or she shall mark the waste management plan as "approved ", retain one copy, and return copies to the applicant and the Community Development Department. If the Recycling Coordinator disapproves the waste management plan, he or she shall state the grounds for denial in writing, retain one copy, and return copies and the grounds for denial to the applicant and the Community Development Department. 14.12.090 Compliance review and refund of security deposit. A. Within thirty (30) days after the completion of any covered project, the applicant shall submit to the Recycling Coordinator documentation concerning the applicant's compliance with the diversion requirements for the project. This documentation shall include: I. Receipts from the vendor or facility that collected or received construction and demolition material from the project, noting the actual weight or volume of material collected or received, including separate summary listings for material diverted and material placed in the landfill; 2. Information concerning the weight or volume of construction and demolition material recycled or reused in the project. B. Applicants shall make reasonable efforts to ensure that construction and demolition materials, whether diverted or placed in the landfill, are measured and recorded. Volumetric measurements may be used, incorporating the standardized conversion rates approved by the City. C. The Recycling Coordinator shall review the information submitted under subsection A to determine whether the applicant has complied with the diversion requirement applicable to the project. 1. If it is determined that the diversion requirement has been achieved, the full amount of the diversion security deposit shall be refunded to the applicant. 2. If it is determined that the diversion requirement has not been met, a portion of the diversion security deposit shall be refunded which is equal to AGENDA tTEM NO. -q3 PACE -- © of / ° CITY COUNCIL ORDINANCE NO. Page 8 of 9 the portion of the diversion requirement that has been met. Any portion of the diversion security deposit not released to the applicant shall be forfeited to the City, and shall be used either to offset administrative costs associated with enforcing the requirements of this Chapter or for efforts to educate the community about the need for recycling and encourage recycling. 14.12.100 Violations — penalty established. Violations of this Chapter shall be governed by Chapter 1.16. SECTION 2: If any provision, clause, sentence or paragraph of this Ordinance or the application thereof to any person or circumstance shall be held invalid, such invalidity shall not affect the other provisions of this Ordinance and are hereby declared to be severable. SECTION 3: This Ordinance shall take effect thirty (30) days after the date of its final passage. The City Clerk shall certify as to adoption of the Ordinance and cause this Ordinance to be published and posted in the manner required by law. INTRODUCED AND APPROVED UPON FIRST READING this day of , 2006, by the following roll call vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: ABSTAIN: COUNCILMEMBERS: PASSED, APPROVED AND ADOPTED UPON SECOND READING this day of , 200_, by the following roll call vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: ABSTAIN: COUNCILMEMBERS: Mayor N.n/ AGENDA ITEM NO. �3 PACE OF _ CITY COUNCIL ORDINANCE NO. Page 9 of 9 ATTEST: Frederick Ray, City Clerk APPROVED AS TO FORM: Barbara Zeid Leibold, City Attorney City of Lake Elsinore AGENDA ITEM P.G. PAGE_ -- CITY OF LAKE ELSINORE REPORT TO THE CITY COUNCIL TO: MAYOR AND CITY COUNCIL FROM: ROBERT A. BRADY, CITY MANAGER DATE: JANUARY 10, 2006 SUBJECT: PLANNING COMMISSION RESIGNATION AND APPOINTMENT PROCESS BACKGROUND On December 13, 2005 Planning Commissioner Fred Francia submitted a letter of resignation from the Planning Commission. Mr. Francia's term would have expired on June 30, 2006. DISCUSSION Section 2.24.030 of the Lake Elsinore Municipal Code states the following: Nor The members of the Commission shall be appointed by the Mayor with the approval of a majority of the members of the City Council and may be removed by the Mayor at his pleasure, but subject to the approval by a majority of the members of the City Council. When Planning Commission terms are about to expire, the City requests interested persons to submit an application for the Commission positions. Public notice for the positions is usually provided through the newspaper, on the City's website and announcements at City Council meetings. The Council will typically appoint a subcommittee of two Council members to review the applications, conduct interviews and make a recommendation to the full Council. This procedure is initiated two to three months in advance of the expiration of the term in order to provide adequate time to submit applications, conduct the interview process and bring a recommendation to the City Council for consideration. Since Mr. Francia's term will expire in less than six months (as will Commissioner LaPere's term), the City Council may want to consider alternate methods to address the appointment of a new Planning Commissioner. Council Staff Report i-. Page 2 FISCAL IMPACT Recruitment costs should be minimal and limited to the cost of advertising for the position. Each Commissioner is paid $50 per Planning Commission meeting attended. Commissioners are compensated for a maximum of three meetings per month. RECOMMENDATION Accept Mr. Francia's resignation and consider the following alternatives: 1. Recruit for the position following the usual process. 2. Allow the Mayor to select a person, subject to the approval of the City Council, for the remainder of the term. 3. Leave the position vacant until July 1, 2006. PREPARED BY: Robert A. Brady, City Manager APPROVED FOR AGENDA LISTING: MANAGEWYOFFICE December 13, 2005 Lake Elsinore City Council, Honorable Mayor Robert Magee Mayor Pro -Tem Robert Schiffner Councilmember Daryl Hickman Councilmember Genie Kelley Councilmember Thomas Buckley Subject: Planning Commission Resignation (Fred Francia) Dear City of Lake Elsinore Council, It is with extensive consideration and personal regret that I immediately resign from my current position as Planning Commissioner for the City of Lake Elsinore. I would very much of liked and been proud to complete my term on the planning commission through June 2006, however I have an opportunity to participate in an educational career development program and focus on a personal project that prevents me from actively attending planning commission meetings during the week. These two opportunities commence next week, thus I will not be able to attend nor participate in next week's planning commission meeting on December 20, 2005. I wish-my fellow Commissioners the best. During my brief period on the commission I have enjoyed the opportunity to work with the City Staff and the planning department's expertise. Lastly, I have gained additional insight as to the planning of projects with thorough project review as a priority and ensuring the appropriate modeling of the project plan so that it may be in the best interest of the community in meeting its needs. Having a General Plan Update citizen advisory committee in place and continual Council study workshops will deliver a well crafted much needed Updated General Plan in mid 2006. Its adoption will demonstrate to our citizens the priority that is on the Council and City staff agenda. I am confident with your leadership we will have a forward looking General Plan, New Ordinances, and Municipal Code updates that will significantly pave the way for a better designed City. Sincerely, Fired Francia cc: " Robert Brady, City Manager Rolfe Preisendanz, Community Development Director Frederick Ray, City Clerk Planning Commission CITY OF LAKE ELSINORE REPORT TO CITY COUNCIL _ TO: MAYOR AND CITY COUNCIL FROM: ROBERT A. BRADY, CITY MANAGER DATE: JANUARY 10,2006 SUBJECT: 32nd YEAR CDBG ALLOCATION BACKGROUND Each year the City of Lake Elsinore receives an allocation of Community Development Block Grant (CDBG) funds through the Economic Development Agency of Riverside County. These allocations are based on population and are designed for assistance to low and moderate income residents. Of the total allocation, 15% can be used for Public (social) Service Programs, while the remaining 85% must be used for Public Works Projects. As part of the 27''', 28''', 29`", 30th and 31S' CDBG years, the City has requested unused percentage caps from other cities within the 0 supervisorial district as well as the County to expand its (the City of Lake Elsinore) available public service allocation. The City has been notified that no additional percentages will be available this year limiting the City to its straight 15% cap. Based on an anticipated total allocation to be received by the County from H.U.D. on the City's behalf ( "unentitled city "), the City would be able to allocate $30,000 of its $200,000 (15 %) towards public service programs with a balance of $170,000 for funding of Public Works projects. DISCUSSION For the 32nd Year funding program, the City is anticipating to receive $200,000 for Fiscal Year 2005 -2006. At the filing deadline of December 8, 2005 the City had received eleven (11) applications totaling $622,360. .AGENDA 1-1 EM NO. S)__ REPORT TO CITY COUNCIL JANUARY 10, 2006 PAGE 2 Agencies requesting funds are: City of Lake Elsinore ($100,000) for City Park Play Equipment Replacement; Alternatives to Domestic Violence ($15,360) for service support; City of Lake Elsinore ($19,000) Senior Center Services; H.O.P.E. ($20,000) for support of their food program; Assistance League of Temecula Valley ($10,000) for Operation School Bell; City of Lake Elsinore (193,000) Curb, Gutter, and Sidewalk Replacement; City of Lake Elsinore ($75,000) for Structure Abatement; City of Lake Elsinore ($25,000) Code Enforcement; CASA ($10,000) Volunteer Recruitment; Boys and Girls Club ($30,000) Before and After School Care; and the City of Lake Elsinore ($125,000) for ADA retrofit of resilient materials in City play areas. PUBLIC WORKS PROJECTS REQUESTED SUGGESTED 2005 -2006 City of Lake Elsinore H.O.P.E. - Curb, Gutter, Sidewalk - Food Program $ 20,000 Replacement $193,000 $ 0 $193,688 - ADA Retrofit of Play Surfaces $125,000 $ 0' $ 0 - City Park Play Equip Replace $100,000 $95,000 $ 0 Sub Total $418,000 $ 95,000 PUBLIC SERVICE_ PROGRAMS City of Lake Elsinore - Senior Center Services $ 19,000 $ 10,000 $ 17,000 H.O.P.E. - Food Program $ 20,000 $ 8,000 $ 6,000 Assistance League of Temecula - Operation School Bell $ 10,000 $ 4,000 $ 4,000 Alternatives to Domestic Violence - Program Support $ 15,360 $ 3,000 $ 3,000 CASA - Volunteer Recruitment $ 10,000 $ 0 $ 0 Boys & Girls Club - Pre and After School Care $ 30,000 $ 5 000 $ 0 Sub Total $104,360 $ 30,000 CODE ENFORCEMENT City of Lake Elsinore - Code Enforcement $ 25,000 $ 0 $ 20,000 - Dangerous Structure Abate $ 75,000 $75,000 $ 25,000 Sub Total $100,000 $ 75,000 TOTAL $622,360 $200,000 N"W r AGENDA ITEM NO. 4 _ . ,--- REPORT TO CITY COUNCIL JANUARY 10, 2006 PAGE 3 Should the City Council wish to further change the Senior Center suggested allocation of $10,000 then staff would request that those decreases be absorbed through the General Fund as part of the FY 2006 -2007 budget process. FISCAL IMPACT The City of Lake Elsinore's CDBG allocation is anticipated at $200,000 for the 32nd Year. These funds will be available July 1, 2006. Staff would recommend that any additional Public Service percentages that become available through additional funds be divided equally. between H.O.P.E. and the Boys and Girls Club. RECOMMENDATION It is staff's recommendation that the Mayor and City Council adopt the 32nd Year CDBG Program as discussed at the January 10th agenda review and direct staff to submit to the County of Riverside the City's approved program. PREPARED BY:, <13AVID W. SAPP, DIRE OF COMMUNITY SERVICES APPROVED FOR AGENDA BY: 114/ /e C MANAGER'S OF CE AGENDA ITEM R €o. �� CDBG APPLICATION URF AGENDA ITEM Nth. �J PADS i OF 3l PROPOSAL NUMBER Date Received COUNTY OF RIVERSIDE COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM APPLICATION FORM 1. GENERAL INFORMATION: Name of Primary Activity Sponsor: Cit y of Lake Elsinore Mailing Address: 130 S. Main Street Zip Code 92530 Telephone Number: (951) 674 -3124 ext. 265 Fax Number: (951) 471 -1418 Contact Person: David W Sapp Title: Director of Community Services Program Manager: Same Phone: 674 -3124 ext. 265 Address (If different from above): Amount of CDBG Funds Requested: $ 100,000 Where will the activity occur and what is the geographic scale of the proposed activity (community, city, region) be specific? City Park Lake Elsinore, California iat Supervisorial District does your activity occur within? 1st 11. ORGANIZATIONAL HISTORY: (This is applicable only if you area non - profit organization). Please provide a list of your current Board of Directors (Label as Attachment II). Date Organization founded: 1888 Date Organization incorporated as a non - profit organization 1888 Number of volunteers Number of paid staff Federal identification number 95- 6000 -707 State identification number749 -02065 Attach: ARTICLES OF INCORPORATION AND BY -LAWS (Label as Attachment IIA) III. PROJECT.ACTIVITY: (check the applicable category your application represents) _ Real Property Acquisition _ Public Service Housing X Capital Equipment (Fixed) Rehabilitation/Preservation (please provide picture of structure) Public Facilities Improvements (construction) Other: (provide description) 100-- 3 AGENDA ITE-PA NO. q57 PAc►ir�_OF�� IV. PROJECT NARRATIVE: A. Name of Project: City Park Play Equipment Replacement Specific Location of Project: City Park, 243 S. Main Street (Include street address, if applicable) B. Provide a detailed description of the proposed proiect by describing precisely what will be accomplished with the requested funds. 1. Provide a detailed Project Description in quantifiable terms: (attach additional sheets if necessary) The play equipment at City Park was installed in 1992. The equipment no longer meets fall zone requirements and cannot be repaired as replacement parts no longer exist. The equipment has been vandalized as has the poured - in -place resilient surfacing. The existing equipment and surfacing must be replaced to meet new code requirements as per State Playground Safety regulations as provided in Title 22 of the California Health and Safety Code. 2. What are the goals and objectives of the project? To provide safe, accessible passage to the play apparatus located in City Park, a low -to- moderate income area in an eligible area of the City. The play equipment is outdated and does not meet current ADA requirements for play structures. The resilient ADA approved surface is vandalized and in need of replacement due to the vandalism and age. The project would also include a shade cover to assist in playability in summer months and defer weathering and improve the life of the equipment. N../ 3. Discuss this project , s benefit to low- and moderate- income residents to be served by this project: The project is located in an area identified by the Census Tract Maps as an eligible area. Many residents use this park due to its proximity to their homes and lack of transportation. 4. If this is a public service activity: (A) Is this a NEW service provided by your agency? Yes_ No . (B) If service is not new, will the proposed activity substantially increase the existing level of service? Explain how the service will be substantially increased. (attach additional sheets if necessary) AGENDA ITEM NO. y� 4 IV. PROJECT NARRATIVE (Cont.): 5. What methods will be used for community involvement to assure that all who might benefit from the project are provided an opportunity to participate? �^ The City held its "Citizen Participation Meeting" on November 7, 2005 when the project was discussed as part of the 2006 — 2007 Project Year. Residents' comments and concerns were heard at that time. 6. What are the project's expected results? How many are expected to be served? The equipment will serve the youth of this low -to- moderate income area and provide handicap access to new equipment that will meet current ADA requirements. 7. How will you measure and evaluate how the project meets its goals and objectives [measures should be both qualitative and quantitative]? The project will have a presumed benefit in that the low -to- moderate income area the project is being constructed at will benefit all residents within a one mile radius of the project. ADA accessibility will be assured through the installation of ADA equipment in conjunction with ADA approved resilient surfacing. 8. What evidence is there of long -term commitment to the proposal? Describe how you plan to continue the work (project) after the grant ends? The 2.5 acre park is the oldest park in the City and has historical reference. The City maintains the site and will do so in perpetuity. 9. Attach maps of proposed project(s) location and service area. AGENDA ITEM NO "15 5 V. PROJECT BENEFIT: To be eligible for CDBG funding, a project must qualify within one of the three following categories. Indicate how the activity in this application meets one of the following categories of benefits. Indicate the source of the information provided. (Provide information for the one category your-application applies to.) CATEGORY 1. Benefit to low- moderate income persons (must be documented). Please identify how you havb,,., documented the persons served are low- moderate income persons by providing information in either A, B, or C. A. Area Benefit: The project serves persons in the identified block groups in Census Tract which are 51 % or more low /moderate income. 2000 Census Data: Census Tract and block group numbers: CT 420.02 BG CT 427.03 BG CT 429 BG CT 430 BG 6&9 CT 431 BG CT 431.98 BG # Total population in Census Tract(s) / block group(s) # Total low- moderate population in Census Tract(s) / block group(s) B. Limited Clientele: The project serves clientele that have documented their income. Identify the procedure you currently have in place to document that the clientele you serve are low- moderate income persons. C. Clientele presumed to be principally low- and moderate - income persons. The following groups are presumed by HUD to meet this criterion: Abused children, battered spouses, elderly persons, severely disabled adults, homeless persons, illiterate adults, person's living with AIDS, and migrant farm workers. Describe your clientele to be served by the activity. CATEGORY 2. Prevention or Elimination of Slums and Blight: Is the project located in a Redevelopment Area? Yes No. If yes, attach map of area. Additionally, provide the Redevelopment Project Area (excerpts accepted) which documents the existence of slum /blight. Also document the specific redevelopment objectives pertaining to the proposed project. CATEGORY 3. Documented Health or Safety Condition of Particular Urgency: Condition shall have been of recent (18 months) origin. Provide documentation which demonstrates the health or safety condition has existed only within the previous 18 months. 1"00 6 AGENDA ITECA 140. L PAGE_-�OF VI FINANCIAL INFORMATION: A. Complete the following annual budget to begin on July I, of this year. If these line items are not applicable to your activity, please attach an appropriate budget. Provide total Budget information and distribution of CDBG funds in the proposed budget. TOTALBUDGET - CDBG FUNDS BUDGET SUMMARY (Include CDBG Funds) REQUESTED I. Personnel A. Salaries & Wages $ $ B. Fringe Benefits $ $ C. Consultants & Contract Services $ $ SUB -TOTAL $ $ Non- Personnel A. Space Costs $ $ B. Rental, Lease or Purchase of Equipment $ $ C. Consumable Supplies $ $ D. Travel $ $ E. Telephone $ $ F. Other Costs $ $ SUB -TOTAL $ $ III. Architectural /Engineering Design $ $ IV. Acquisition of Real Property $ $ V. Construction /Rehabilitation $ 100.000 $ 100,000 TOTAL: $11 _00.000 $ 100.000 B. Identify other funding sources; identify commitments or applications for funds from other sources to implement this activity. Attach evidence of commitment. If commitments are pending, indicate amount requested and attach documentation regarding the previous year's funding. Funding Source Amount Requested Date Available Type of Commitment C. Provide a summary by line item of your Agency, s previous year's income and expense statement. See attached. AGENDA ITEMi NO. L pAtGE__ ___OF VII. D. If this project benefits citizens of more than one community or local jurisdictions and /or municipalities, have requests been made to those other jurisdictions: Yes _ No _ If yes, identify sources and indicate outcome If no, please explain N/A E. Was this project previously funded with CDBG funds? If yes, when? Is this activity a continuation of a previously funded (CDBG) project? (explain) Yes, 1992. The City utilized CDBG funds for the installation of resilient surfacing to meet ADA requirements. It is not a continuation of any previously funded project. MANAGEMENT INFORMATION: (Provide this information by attachment if necessary.) A. Describe the organization responsible for managing and operating the project including: previous similar experience, fist source, and commitment of funds for operation and maintenance. Identify project manager, or person in charge of the project's day -to -day operations. The City of Lake Elsinore Community Services Department has overseen the operation of the Senior Center through use of CDBG funds and has participated in the curb, gutter, sidewalk program & restroom renovation program at the Lake Community Center B. What is the role of your organization in the community? The Community Services Department is responsible for all recreation services in the community, oversees all public works, lake, stadium, parks and street operations within the City. o, C. Timetable for Project Implementation. Indicate primary project objectives: (You may attach a time chart, if you wish). OBJECTIVE Bids Design Construction START DATE August 1, 2006 November 2006 January 2007 COMPLETION DATE October 2006 December 2006 March 2007 8 4GENDA ITEM NO. yS Nft./'" D. If you have never received CDBG funding from Riverside County, provide the following regarding any previous experience with other Federally funded programs. Amt. Source Activity Year Funds Received Funds Expended VIII. CITIZEN PARTICIPATION: Every project proposal MUST contain evidence of citizen participation and support for the proposal. That evidence must include documentation of at least one community meeting this year at which the specific project was discussed and opportunity given for citizen input. Describe the methods used to obtain citizen involvement and attach appropriate documentation. A meeting was held on November 7, 2005 to discuss the upcoming program. IX. PLANNING: Identify the most applicable adopted plans or strategies which the proposed project will help implement. NIA 9 AGENDA iTEM NO � S PACE II O� APPLICATION CERTIFICATION Undersigned hereby certifies that 1. The information contained in the project application is complete and accurate. 2. The applicant shall comply with all Federal and County policies and requirements affecting the CDBG program. 3. The federal assistance made available through the CDBG program funding is not being utilized to substantially reduce the prior levels of local financial support for community development activities. 4. The applicant shall maintain and operate the facility for its approved use throughout its economic life. 5. Sufficient funds are available to complete the project as described, if CDBG funds are approved. fi. I have obtained authorization to submit this application for CDBG funding. (DOCUMENTATION ATTACHED). Typelprint name and title of Authorized Representati Signature of Authorized Representatii UA I t December 8. 2005 The following are attached to this application: Yes NO [X] [ ] 1) Map of area served DC) [ ] II) Management information DO [ l 111) Organizational history (Non- Profits only) [) [ l A) Articles of Incorporation I) [ ] B) Current Board of Directors [ ) [ ) IV) Income and Expense Statement SXCOBGiCTZNPRTN\2005W pplication.doc `.000 ,"so* AOi =f,tt A ITO, NO- L4a 10 PAGE—JC4_0F_at PADS k fWIIITM i ..... AGENDA ITEM ICU. pis � 'A�' - j;1__Q pn?.� ■C ®C ■ ❑ ■ ■ ■ ■G ■C ■■ ■ACC ■ ■ ■G ■ ■G ■O ■ ■■ c ,,.. , , o ■■c.:acc■ ■■■■■c���ccccc�c■■■■s■ ooONcuc ■■ ❑c�c■■c■ ❑ccc■cecE■■■■om pry-, �, � ■ ■�G�� ■ ■� ■ ■i ■ ■ ■ ■� ■ ■G ■�u ■ ■ ■�G►G� i ..... AGENDA ITEM ICU. pis � 'A�' - j;1__Q CDBG APPLICATION AGENDA ITEM NO. q 5- PROPOSAL NUMBER Date Received COUNTY OF RIVERSIDE COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM APPLICATION FORM 1. GENERAL INFORMATION: Name of Primary Activity Sponsor: City of Lake Elsinore Mailing Address: 130 S. Main Street, Lake Elsinore Zip Code 92530 Telephone Number:( 951 ) 674 -3124 extension 265 Contact Person: Dave Sapp Title: Director of Community Services Program Manager: Dave Address (if different from above): Amount of CDBG Funds Requested: $ 193 000.00 Phone: 951 - 674 -3124 ext. 265 Where will the activity occur and what is the geographic scale of the proposed activity (community, city, region) be specific? In the downtown area of Lake Elsinore iat Supervisorial District does your activity occur within? 1 st 11. ORGANIZATIONAL HISTORY: (This is applicable only if you are a non - profit organization). Please provide a list of your current Board of Directors (Label as Attachment 11). Date Organization founded: 1888 Date Organization incorporated as a non - profit organization 1888 Number of volunteers N/A Number of paid staff N/A Federal identification number 95 -6000 -707 State identification number-749-02065 Attach: ARTICLES OF INCORPORATION AND BY -LAWS (Label as Attachment IIA) Ill. PROJECT ACTIVITY: (check the applicable category your application represents) Real Property Acquisition Public Service Housing _ Capital Equipment (Fixed) Rehabilitation /Preservation (please provide picture of structure) X . Public Facilities Improvements (construction) Other: (provide description) ` 1 !"0. PACE j_Lr7 r IV. PROJECT NARRATIVE: A. Name of Project: Curb, Gutter, Sidewalk Construction and Replacement Specific Location of Project: Historical Downtown Lake Elsinore (Include street address, if applicable) B. Provide a detailed description of the proposed project by describing precisely what will be accomplished with the requested funds. 1. Provide a detailed Project Description in quantifiable terms: (attach additional sheets if necessary) The project would entail the construction of new curb, gutter, and sidewalk as well as the removal and replacement of deteriorated existing sidewalk in the downtown area. Once the project is approved, the City will form a committee comprised of Community Services, Public Works, Engineering, and Community Development staff to identify the specific locations in the downtown area_ 2. What are the goals and objectives of the project? Provide safe walkways to area schools. Remove trip hazards and potential injury by replacing uplifted and cracked sections of sidewalk and curb /gutter. Improve flood control measures by channelization of sheeting water from streets. Improve access to community facilities such as parks, community and senior centers, beaches, library, and the historic downtown corridor. 3. Discuss this project, s benefit to low - and moderate- income residents to be served by this project: The project will address an array of needs including safe accessibility for the disabled, improve public safety by providing improved transitional surfacing for pedestrian access in areas prequalified in tow -to- moderate income neighborhoods. The improvements will provide safe pedestrian access while improving the neighborhood's quality of life, improve nuisance and rain water run -off, and improve overall neighborhood aesthetics. 4. If this is a public service activity: (A) Is this a NEW service provided by your agency? Yes_ No X (B) If service is not new, will the proposed activity substantially increase the existing level of service? Explain how the service will be substantially increased. (attach additional sheets if necessary) The City has limited finances to address curb, gutter, and sidewalk programs. The grant funding will greatly expand the City's ability to provide for needed curb, gutter, and sidewalk facilities. 4 _ AGENDA ITEM NO. �iCr PA �t? $ IV. PROJECT NARRATIVE (Cont.): 5. What methods will be used for community involvement to assure that all who might benefit from the project are provided an opportunity to participate? A citizen - participation meeting was held to gather input from affected area families. The City charts correspondence and phone calls requesting improvements. 6. What are the project's expected results? How many are expected to be served? Provide safe walk -ways to area schools, community facilities and parks. Improve property values and stimulate a sense of pride and self worth. Utilize as a small flood control program. 7. How will you measure and evaluate how the project meets its goals and objectives [measures should be both qualitative and quantitative]? Evaluation of the quality of the work as it relates to workmanship will be through the City's inspectors. All goals and objectives will be visually determined based on usage. 8. What evidence is thereof long -term commitment to the proposal? Describe how you plan to continue the work (project) after the grant ends? This is a continuation of the on ongoing Program started in the Spring of 2000. 9. Attach maps of proposed project(s) location and service area. 5 ACEINDA ITEA NO. q5 PA LJ _OF Slt� V. PROJECT BENEFIT: To be eligible for CDBG funding, a project must qualify within one of the three following categories. Indicate how the activity in this application meets one of the following categories of benefits. Indicate the source of the information provided. (Provide information for the one category your application applies to.) CATEGORY 1. Benefit to low- moderate income persons (must be documented). Please identify how you have documented the persons served are low- moderate income persons by providing information in either A, B, or C. A. Area Benefit: The project serves persons in the identified block groups in Census Tract which are 51 % or more low /moderate income. 2000 Census Data: Census Tract and block group numbers: CT 430 BG 6.9 CT BG CT BG CT BG CT BG CT BG # Total population in Census Tract(s) / block group(s) If Total low- moderate population in Census Tract(s) / block group(s) B. Limited Clientele: The project serves clientele that have documented their income. Identify the procedure you currently have in place to document that the clientele you serve are low- moderate income persons. ti.rr' C. Clientele presumed to be principally low- and moderate- income persons. The following groups are presumed by HUD to meet this criterion: Abused children, battered spouses, elderly persons, severely disabled adults, homeless persons, illiterate adults, person's living with AIDS, and migrant farm workers. Describe your clientele to be served by the activity. CATEGORY 2. Prevention or Elimination of Slums and Blight: Is the project located in a Redevelopment Area? Yes No. If yes, attach map of area. Additionally, provide the Redevelopment Project Area (excerpts accepted) which documents the existence of slum/blight. Also document the specific redevelopment objectives pertaining to the proposed project. CATEGORY 3. Documented Health or Safety Condition of Particular Urgency: Condition shall have been of recent (18 months) origin. Provide documentation which demonstrates the health or safety condition has existed only within the previous 18 months. Lwn AGENDA ITEM NO. L4 S 6 PACE__ -OF AN Ao�_ VI. FINANCIAL INFORMATION: A. Complete the following annual budget to begin on July I, of this year. If these line items are not applicable to your activity, please attach an appropriate budget. Provide total Budget information and distribution of CDBG funds in the proposed budget. TOTAL BUDGET _ CDBG FUNDS BUDGET SUMMARY (Include CDBG Funds) REQUESTED 1. Personnel A. Salaries & Wages $ $ B. Fringe Benefits $ $ C. Consultants & Contract Services $ $ SUB -TOTAL $ $ II. Non- Personnel A. Space Costs $ $ B. Rental, Lease or Purchase of Equipment $ $ C. Consumable Supplies $ $ .D. Travel $ $ E. Telephone $ $ F_ Other Costs $ $ SUB -TOTAL $ $ III. Architectural /Engineering Design $ 6.000 $ 6,000 1V. Acquisition of Real Property $ $ V. Construction /Rehabilitation $ 187,000 $ 187.000 TOTAL: $_1 93.J000 $ 193.000 B. Identify other funding sources; identify commitments or applications for funds from other sources to implement this activity. Attach evidence of commitment. If commitments are pending, indicate amount requested and attach documentation regarding the previous year's funding. Funding Source Amount Requested Date Available Type of Commitment City of Lake Elsinore $193,000 7/01/05 Grant C. Provide a summary by line item of your Agency, s previous year's income and expense statement. AGENDA li"cM € O. �1 J 7 PACE PF D. If this project benefits citizens of more than one community or local jurisdictions and /or municipalities, have requests been made to those other jurisdictions: Yes _ No X If yes, identify sources and indicate outcome If no, please explain C�J E. Was this project previously funded with CDBG funds? If yes, when? Is this activity a continuation of a previously funded (CDBG) project? (explain) Yes. VII. MANAGEMENT INFORMATION: (Provide this information by attachment if necessary.) A. Describe the organization responsible for managing and operating the project including: previous similar experience, list source, and commitment of funds for operation and maintenance. Identify project manager, or person in charge of the project's day -to -day operations. The City of Lake Elsinore will provide management services for the project. (See attached) B. What is the role of your organization in the community? C. Timetable for Project Implementation. Indicate primary.project objectives: (You may attach a time chart, if you wish). OBJECTIVE START DATE COMPLETION DATE Operations October 1,2001 June 30, 2002 8 AGENDA IT IP; No. � 5 PACE 00 ,*--" D. If you have never received CDBG funding from Riverside County, provide the following regarding any previous experience with other Federally funded programs. Amt. Source Activity Year Funds Received Funds Expended Vlll. CITIZEN PARTICIPATION: Every project proposal MUST contain evidence of citizen participation and support for the proposal. That evidence must include documentation of at least one community meeting this year at which the specific project was discussed and opportunity given for citizen input. Describe the methods used to obtain citizen involvement and attach appropriate documentation. A "Citizen Participation Meeting" was held on Monday, November 13, 2000 to discuss the City's past funded programs, as well as those proposed for the 27"' year. IX. PLANNING: Identify the most applicable adopted plans or strategies which the proposed project will help implement: [UL-1 AGENDA ITEM N.0. qS _ 9 PACE ) iE4L APPLICATION CERTIFICATION Undersigned hereby certifies that: 1. The information contained in the project application is complete and accurate. 2. The applicant shall comply with all Federal and County policies and requirements affecting the CDBG program. 3. The federal assistance made available through the CDBG program funding is not being utilized to substantially reduce the prior levels of local financial support for community development activities. 4. The applicant shall maintain and operate the facility for its approved use throughout its economic life. 5. Sufficient funds are available to complete the project as described, if CDBG funds are approved. 6. 1 have obtained authorization to submit this application for CDBG funding. (DOCUMENTATION ATTACHED). TypeXprint name and title of Authorized Representative David W SaDd7ffirector cK Community Services Signature of Authorized Representative DATE Decemb 8 2005 The following are attached to this application: Yes NO p(] [ ] 1) Map of area served fX1 [ ] II) Management information DO [ ] 111) Organizational history (Non- Profits only) [ ) j I A) Articles of Incorporation [ ] [ ] B) Current Board of Directors [) [) IV) Income and Expense Statement SICDB=TZNPRTN%2005%"icaiion.doc 10 PACE) _0F VICINITY MAP PACE c2�OF If CDBG APPLICATION #3 r AGENDA ITEM W10. J PA � ^OF - % ^../ PROPOSAL NUMBER Date Received ,*0_� COUNTY OF RIVERSIDE COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM APPLICATION FORM 1. GENERAL INFORMATION: Name of Primary Activity Sponsor: City of Lake Elsinore Mailing Address: 130 S. Main Street Telephone Number: (951) 674 -3124 ext. 265 Contact Person: David W. Zip Code 92530 Fax Number: (951) 471 -1418 Title: Director of Community Services Program Manager: Same Phone: 674 -3124 ext. 265 Address (If different from above): Amount of CDBG Funds Requested: $ 125.000 Where will the activity occur and what is the geographic scale of the proposed activity (community, city, region) be specific? Community /Neighborhood parks within the corporate boundaries of the City of Lake Elsinore at Supervisorial District does your activity occur within? 1st 11. ORGANIZATIONAL HISTORY: (This is applicable only if you area non - profit organization). Please provide a list of your current Board of Directors (Label as Attachment 11). Date Organization founded: 1888 Date Organization incorporated as a non - profit organization 1888 Number of volunteers Number of paid staff Federal identification number 95- 6000 -707 State identification number 749 -02065 Attach: ARTICLES OF INCORPORATION AND BY -LAWS (Label as Attachment IIA) 111. PROJECT ACTIVITY: (check the applicable category your application represents) Real Property Acquisition _ Public Service Housing _ Capital Equipment (Fixed) _ Rehabilitation/Preservation (please provide picture of structure) X Public Facilities Improvements (construction) Other: (provide description) 3 AGENDA 1TE:A NO._ H PAIGE=. OF IV. PROJECT NARRATIVE: A. Name of Project: ADA Retrofit of Play Surfaces Specific Location of Project: See list attached (Include street address, if applicable) B. Provide a detailed description of the proposed project by describing precisely what will be accomplished with the requested funds. 1. Provide a detailed Project Description in quantifiable terms: (attach additional sheets if necessary) The project entails the removal of old resilient ADA accessible material and replaces it with new material and sub- base where necessary. Most of the City's parks have material that has been vandalized resulting in the need for resurfacing, or has weathered and met its life expectancy. Either way, this impacts the ability of handicapped individuals to have access to the play equipment at these sites. 2. What are the goals and objectives of the project? To replace old vandalized and/or worn material with new to meet ADA and State Playground Safety Regulations as provided in Title 22 of the California Health and Safety Code. 3. Discuss this project, s benefit to low- and moderate- income residents to be served by this project: This project services citizens of all areas of the City but primarily addresses the need for ADA accessibility to all` Ago City facilities. Existing sites are weathered or vandalized impacting those with handicaps to safely access the City's play equipment within its park system. N/A 4. If this is a public service activity: (A) Is this a NEW service provided by your agency? Yes No . (B) If service is not new, will the proposed activity substantially increase the existing level of service? Explain how the service will be substantially increased. (attach additional sheets if necessary) 4 AGEWA ITUA 40. 'IS- PACE 44_11F IV. PROJECT NARRATIVE (Cont.): 5. What methods will be used for community involvement to assure that all who might benefit from the project are provided an opportunity to participate? The City is responding to concerns shared by residents of the City. This project was also discussed as part of the "Citizen Participation Meeting" held November 7th at the City's Cultural Center. 6. What are the project's expected results? How many are expected to be served? Improved and unimpaired accessibility are the expected results. The actual number to be served is not known at this time. 7. How will you measure and evaluate how the project meets its goals and objectives [measures should be both qualitative and quantitative]? As a Public Works project, the installation of the surfacing will indicate the objective being met. 8. What evidence is there of long -term commitment to the proposal? Describe how you plan to continue the work (project) after the grant ends? The City will utilize General Fund maintenance funds to maintain the improvements once completed. The facilities are owned by the City in perpetuity and will be maintained through funding in the City's annual budget. 9. Attach maps of proposed project(s) location and service area. 5 AGENDA IT EMI 11i'0 L4 - -- PACE OF V. PROJECT BENEFIT: To be eligible for CDBG funding, a project must qualify within one of the three following categories. Indicate how the activity in this application meets one of the following categories of benefits. Indicate the source of the information provided. (Provide information for the one category your application applies to.) CATEGORY 1. Benefit to low- moderate income persons (must be documented). Please identify how you havel-O' documented the persons served are low- moderate income persons by providing information in either A, B, or C. A. Area Benefit: The project serves persons in the identified block groups in Census Tract which are 51 % or more low /moderate income. 2000 Census Data: Census Tract and block group numbers: CT 420.02 BG CT 427.03 BG CT 430 BG 6 & 9 CT 431 BG CT 429 BG CT 431.98 BG # Total population in Census Tracts) / block group(s) # Total low- moderate population in Census Tract(s) / block group(s) B. Limited Clientele: The project serves clientele that have documented their income. Identify the procedure you currently have in place to document that the clientele you serve are low- moderate income persons. C. Clientele presumed to be principally low- and moderate - income persons. The following groups are presumed by HUD to meet this criterion: Abused children, battered spouses, elderly persons, severely disabled adults, homeless persons, illiterate adults, person's living with AIDS, and migrant farm workers. Describe your clientele to be served by the activity. CATEGORY 2. Prevention or Elimination of Slums and Blight: Is the project located in a Redevelopment Area? Yes No. If yes, attach map of area. Additionally, provide the Redevelopment Project Area (excerpts accepted) which documents the existence of slum/blight. Also document the specific redevelopment objectives pertaining to the proposed project. CATEGORY 3. Documented Health or Safety Condition of Particular Urgency: Condition shall have been of recent (18 months) origin. Provide documentation which demonstrates the health or safety condition has existed only within the previous 18 months. N"00 N"90 AGENDA ITEM No. L� 6 PA_,�Z _OF� VI. FINANCIAL INFORMATION: A. Complete the following annual budget to begin on July I, of this year. If these line items are not applicable to your activity, please attach an appropriate budget. Provide total Budget information and distribution of CDBG funds in the proposed budget. TOTAL BUDGET _ CDBG FUNDS BUDGET SUMMARY (Include CDBG Funds) REQUESTED I. Personnel A. Salaries & Wages $ $ B. Fringe Benefits $ $ C. Consultants & Contract Services $ $ SUB -TOTAL $ $ II. Non - Personnel A. Space Costs $ $ B. Rental, Lease or Purchase of Equipment $ C. Consumable Supplies $ $ D. Travel $ $ E. Telephone $ $ F. Other Costs $ $ SUB -TOTAL $ $ III. Architectural/Engineering Design $ $ 1V. Acquisition of Real Property $ $ V. Construction /Rehabilitation $ 125.000 $ 125.000 TOTAL: $125.000 $ 125.000 (Note: 6,944 sq.ft. of resilient surfacing @ $18 per foot = $124,992) B. Identify other funding sources; identify commitments or applications for funds from other sources to implement this activity. Attach evidence of commitment. If commitments are pending, indicate amount requested and attach documentation regarding the previous year's funding. Funding Source Amount Requested Date Available Type of Commitment C. Provide a summary by line item of your Agency, s previous year's income and expense statement. See attached. AGENDA ITEM N10. 7 PACE — �- F--GF� D. If this project benefits citizens of more than one community or local jurisdictions and /or municipalities, have requests been made to those other jurisdictions: Yes _ No _ If yes, identify sources and indicate outcome If no, please explain N/A ,"/ E. Was this project previously funded with CDBG funds? If yes, when? Is this activity a.continuation of a previously funded (CDBG) project? (explain) Yes, in 1992. This is not a continuation of this project. VII. MANAGEMENT INFORMATION: (Provide this information by attachment if necessary.) A. Describe the organization responsible for managing and operating the project including: previous similar experience, list source, and commitment of funds for operation and maintenance. Identify project manager, or person in charge of the project's day -to -day operations. The City of Lake Elsinore. Community Services Department has overseen the operation of the Senior Center through use of CDBG funds and has participated in the curb, gutter, sidewalk program & restroom renovation program at the Lake Community Center B. What is the role of your organization in the community? The Community Services Department is responsible for all recreation services in the community, oversees all public works, lake, stadium, parks and street operations within the City. C. Timetable for Project Implementation. Indicate primary project objectives: (You may attach a time chart, if you wish). OBJECTIVE START DATE COMPLETION DATE Bids July 2006 August 2006 Construction September 2006 November 2006 �.r AGENDA ITEM NO. q5 _ 8 PACE X10 OF D. If you have never received CDBG funding from Riverside County, provide the following regarding any previous experience with other Federally funded programs. Amt. Source Activity Year Funds Received Funds Expended VIII. CITIZEN PARTICIPATION: Every project proposal MUST contain evidence of citizen participation and support for the proposal. That evidence must include documentation of at least one community meeting this year at which the specific project was discussed and opportunity given for citizen input. Describe the methods used to obtain citizen involvement and attach appropriate documentation. A meeting was held on November 7, 2005 to discuss the upcoming program. IX. PLANNING: Identify the most applicable adopted plans or strategies which the proposed project will help implement: N/A AGl N1DA ITEM NO. 47�5- _ 9 PA _ LU ___OF 3 APPLICATION CERTIFICATION Undersigned hereby certifies that: 1. The information contained in the project application is complete and accurate. 2. The applicant shall comply with all Federal and County policies and requirements affecting the CDBG program. 3. The federal assistance made available through the CDBG program funding is not being utilized to substantially reduce the prior levels of local financial support for community development activities_ 4. The applicant shall maintain and operate the facility for its approved use throughout its economic life. 5. Sufficient funds are available to complete the project as described, if CDBG funds are approved. 6. 1 have obtained authorization to submit this application for CDBG funding. (DOCUMENTATION ATTACHED). Type\priint name and title of Authorized Representative David W Sa rector oY Community Services Signature of Authorized Representative DATE Decembe 8, 2005 The following are attached to this application: Yes NO DO [ 1 1) Map of area served DO [ 1 11) Management information 1X1 [ 1 III) Organizational history (Non- Profits only) [ 1 (} A) Articles of Incorporation ( 1 [ 1 B) Current Board of Directors ( 1 [ 1 IV) Income and Expense Statement S :1CDeG\CTZNMTM2o0Sapplicatiw,.dw AGENDA ITEM NO. 145 10 PA _.j5J_oF N%ffiol ' Y' r''^` I�iCCCiC��OiC ■C ■�iwJ■E■C■E ""i■N■ �- ..� �■�a■C■aac�er�■■oaaa�a� ■■■i■�■ �__w - o■�a� ❑cc ❑aa■�■c�ocaai■■c■■i■■■ ]r"",mmoT - © ■�aiC ■�� ■ ■ ■� ■��� ■�a�a�■ ■ice ■ ■� :, - _ © ■t:7 ■C ■ ■i ■CC ■ ■ ■CCCCCCC ■C ■ ■ ■ ■ ■■ ■oa:.avu ■■�■�icc�cacccccc■i■■■ :. ;v■■■s�■■�■■■■■s■�■�■■ ■ ■�■■■e■■ ip CDBG APPLICATION Imm AGENDA T EM rda. L15- PAM: PROPOSAL NUMBER Date Received COUNTY OF RIVERSIDE Community Development Block Grant Program Application Form I GENERAL INFORMATION: Name of Primary Activity Sponsor: City of Lake Elsinore Community Services Department Mailing Address: 130 S. Main Street lake Elsinore Zip Code: 92530 Telephone Number: (951) 674 -3124 ext 265 Contact Person: David W. Sapp Program Manager: Teri Fazzio Fax Number: (951) 471 -1418 Title: Director of Community Services Phone: (951) 674 -3124 ext 267 Address (If different from above): 420 E. Lakeshore Drive Lake Elsinore CA 92530 Amount of CDBG Funds Requested: $ $19,000 1-1� ere will the activity occur and what is the geographic scale of the proposed activity (community, city, ,,:pion)? Be specific. Lake Elsinore Senior Activity Center. serving Lake Elsinore City and surrounding unincorporated Riverside County area. What Supervisorial District does your activity occur within? District One II. ORGANIZATIONAL HISTORY: (This is applicable if you are a non -profit organization). Please provide a list of your current Board of Directors (Label as Attachment II). Date Organization founded: ' 1888 / City of Lake Elsinore Date Organization incorporated as a non- profit organization: N/A Number of volunteers: 20-30 Number of paid staff: 1.5 FTE on site plus administrative support off site Federal identification number: 95 -6000 -707 State identification number: 749 -02065 Attach: ARTICLES OF INCORPORATION AND BY -LAWS (Label as Attachment IIA) III PR03ECT ACTIVITY: check the applicable category your application represents) Real Property Acquisition X Public Service Housing Capital Equipment (fixed) Rehabilitation /Preservation (please provide picture of structure) Public Facilities Improvements (construction) ,tether: (provide description): 3 AGENDA ITEM N0. L4L5- IV PROJECT NARRATIVE: A. Name of Project: Lake Elsinore Senior Activity Center - N"801 Specific Location of Project: 420 E. Lakeshore Drive, Lake Elsinore, CA 92530 (include street address, if applicable) B. Provide a detailed description of the proposed proiect by describing precisely what will be accomplished with the requested funds. 1. Provide a detailed Project Description in quantifiable terms (attached additional sheets if necessary) Operation of the Lake Elsinore Senior Activity Center. Operating Hours: Mon -Fri, 8am -4pm and other hours for special events / projects. a. Service, educational & recreational service center. b. Provides information & referral, health screenings, educational programs, classes, computer learning center, daily nutritional site, exercise programs, social & service clubs, support groups, drop -in & organized group activities, special services (income tax, HRA, paralegal, notary, Social Security, food distributions & general assistance, counseling & other support & advocacy programs) for older adults. c. Center serves over 200 patrons per day to include City & County Residents • Facility operations, staffing utilities, supplies & equipment • CDBG funding would be supplemented by City General Funds & private donations. 2. What are the goals and objectives of the project? a. To provide: Safe & comfortable environment to visit, socialize & secure needed services. • Quality programs & services to meet the special needs of the older adult population. b. Expanded services & programs for the continuing education of older adults through cooperative ventures with agencies & service providers & local businesses /merchants. c. Coordinate community resources to provide special services to meet the social, economic & personal needs of the older adults. d. Provide diversified programs & expand opportunities available to local seniors. e. Provide outreach & marketing efforts to make the public aware of available programs & services. 3. Discuss this project's benefit to low- and moderate - income residents to be served by this project. a. The facilities, programs, and services are offered free or at reduced costs through cooperative ventures; donations of funds, time, services &equipment; and grant funding. Examples include the computer learning center; food distributions & pantry programs; legal assistance; counseling; notary services; health screenings; income tax, HRA, & social security services; and many more are offered regularly at no cost. 4. If this is a public service: (A) Is this a NEW service provided by your agency? NO (B) If service is not new, how will the existing public service activity level be substantially increased? (B) New programs and services will be provided; outreach efforts will bring in new patrons; Cooperative ventures will be pursued and instituted. Programs are continually evaluated for relevance and new services are being implemented every month. 4 >� AGENDA ITEM NO. PACIE_OI=_. I>4-, PR07ECT NARRATIVE (CONT.): 5. What methods will be used for community involvement to assure that all who might benefit from the project are provided an opportunity to participate? Marketing methods include use of Newspapers, radio & Cable TV public service sports; mailings; monthly Center Newsletter; flyer distribution; public presentations and all other means that become available. Coordinated work with churches, organizations (Elks, Cops for Kids, etc.) and service agencies (HARP, Social Security, DPSS, etc.) to provide information to the public. 6. What are the project's expected results? How many are expected to be served? Increase in attendance by 5% annually; expanded programs, new contacts and greater awareness of available programs and services. Project: 210 average daily basis. 7. How will you measure and evaluate how the project meets its goals and objectives (measures should be both qualitative and quantitative)? Log daily attendance (daily sign -in sheets) Log daily telephone & personal contacts • Log numbers of persons served Survey users to obtain feedback of the participants Gather information & feedback following each program offered Provide "comments" forms for benefit information to participants. 8. What evidence is there of long -term commitment to the proposed. Describe how you plan to continue the work (project) after the grant ends? This is a City facility and we will continue to seek funding to supplement City support through grants and general funds as needed. We will solicit donations and continue to provide as many services for free or at a reduced cost based on funding availability. 9. Attach maps of proposed project(s) location and service area. 5 PACE OF V. PROJECT BENEFIT: To be eligible for CDBG funding, a project must qualify within one of the three following categories. Indicate how the activity in this application meets one of the following categories of benefits. Indicate the source of the information provided. (Provide information for the one category your application applies to.) CATEGORY 1. Benefit to low - moderate income persons (must be documented) Please identify how you have documented the persons served are low - moderate income persons by providing information in either A, B, or C. A_ Area Benefit: The project serves persons in the identified block groups in Census Tract which are 51% or more low /moderate income. 2000 Census Data: CT 420.02 BG CT 427.03 BG CT 429 BG CT _430 BG _6.9 CT 431 BG CT 431.98 BG # Total population in Census Tract(s) / block group(s) # Total low- moderate population in Census Tract(s) / block groups(s) B. Limited Clientele: The project serves clientele that have documented their income. Identify the procedure you currently have in r./` place to document that clientele you serve are low- moderate income persons. Intake forms are completed on each participant at the program site. C. 'Clientele presumed to be principally low- and moderate- income persons. The following groups are presumed by HUD to meet this criterion: Abused children, battered spouses, elderly persons, severely disabled adults, homeless persons, illiterate adults, person's living with AIDS, and migrant farm workers. Describe your clientele to be served by the activity. All clients are elderly persons. Intake forms are completed annually to document participants. CATEGORY 2. Prevention or Elimination of Slum and Blight: N/A Is this project located in a Redevelopment area? _ Yes _ No. If yes, attach map of area. Additionally, provide the Redevelopment Project Area (excerpts accepted) which documents the existence of slum/blight., Also document the specific development objectives pertaining to the proposed project. CATEGORY 3. Documented Health or safety Condition or Particular Urgency: N/A Condition shall have been recent (18 months) origin. Provide documentation which demonstrates the health or safety condition has existed only within the previous 18 months. 6 AGE:��'IA I`I EM NO. �J VI FINANCIAL INFORMATION a. Complete the following annual budget to begin on July 1, of this year. If these line items are not applicable to your activity, please attach an appropriate budget. Provide total Budget information and distribution of CDBG funds in the proposed budget. BUDGET SUMMARY TOTAL BUDGET CDBG FUNDS (Include CDBG Funds) REQUESTED I Personnel A. Salaries & Wages 62,000 19,000 B. Fringe Benefits 37,500 C. Consultants & Contract Services 26,800 SUB -TOTAL $126,300 $19,000 II Non - Personnel A. Space Costs -0- -0- B. Rental, Lease, Purchase Equipment -0- -0- C. Consumable Supplies 1,500 -0- D. Other Costs -0- -0- �` SUB TOTAL $1,500 -0- III Architectural / Engineering Design -0- -0- IV Acquisition of Real Property -0- -0- V Construction / Rehabilitation -0- -0- TOTAL $127,800 $19,000 B. Identify other funding sources; identify commitments or applications for funds from other sources to implement this activity. Attach evidence of commitment. If commitments are pending indicate amount requested and attach documentation regarding the previous year's funding. Funding Source Amount Requested Date Available tae of Commitment City of Lake Elsinore $108,800 7/1/06 General Fund Lake Elsinore CDBG $19,000 7/1/06 Grant C. Provide a summary by line item of your Agency's previous year's income and expense statement. AGENDA ITE4, NO. Lis- Atw F� D. If this project benefits citizens of more than one community or local jurisdictions and /or municipalities, have requests been made to those other jurisdictions? _ Yes X No If yes, identify sources and indicate outcome N"00 If no, please explain Riverside County CDBG funding was requested to provide service to unincorporated areas in Riverside County being served by the Center. Funding was denied, however 25°x6 of the services provided are to county, unincorporated residents. This year the Center will continue to provide services to any one who comes to the center without restrictions. E. Was this project previously funded with CDBG funds? If yes, when? Is this activity a continuation of a previously funded (CDBG) project? (explain) This project is a continuation of a previously funded program. Request for funds is for continuation and expansion of programs and services to the community. VII. MANAGEMENT INFORMATION: (Provide this information by attachment if necessary.) A. Describe the organization responsible for managing and operating the project including: previous similar experience, list source, and commitment to funds for operation and maintenance. Identify project manager, or person in charge of the project's day - to-day operations. The City of Lake Elsinore Community Services Department will provide the management for this project. This department is responsible for the City's Parks, Recreation Facilities (Senior Center, Community Center, 1"001 Stadium), Tourism, and Streets. Teri Fazzio, Recreation & Tourism Manager, will oversee the operations and make operating decisions; and Arline Guibransen, Community Services Coordinator has 20+ years of management experience in public Recreation and Senior Service programs. Funding for the operation of the facility and programs is a combination of CDBG funds supplemented by City General Funds and private donations. . B. What is the role of your organization in the Community? The City of Lake Elsinore is a Municipal government operation with a Council /City Manager organization, responsible for the public safety and provision of municipal services for the resident of the City. The Community Services Department oversees the operation of City Recreation Facilities and is very involved in community programs. It is the focal point of the City, supporting private and public endeavors for the betterment of the residents. The City disseminates public information and promotes programs and services available to the citizens. C. Timetable for Project Implementation. Indicate primary project objectives: (You may attach a time chart, if you wish). OBJECTIVE START DATE COMPLETION DATE Operation (fiscal) July 1, 2006 June 30, 2007 8 AGENDA ITEMI NO. PAO£ OF D. If you have never received CDBG funding from Riverside County, provide the following regarding any previous experience with other Federally funded programs. - Source Activity Year Funds Received Amt. Funds Expected VIII CITIZEN PARTICIPATION: Every project proposal MUST contain evidence of citizen participation and support for the proposal. That evidence must include documentation of at least one community meeting this year at which the specific project was discussed and opportunity given for citizen input. Describe the methods used to obtain citizen involvement and attached appropriate documentation. The Community was invited to provide input at a public meeting held Monday, November 7, 2005 at the Cultural Center in Lake Elsinore. The Public was invited and encouraged to voice their views on how CDBG funds are to be allocated, and can provide input at all public meetings. The Lake Elsinore Senior Activity Center is well supported, providing valuable services for older adults in the community. It serves a daily average of 200 persons and coordinates many activities with service providers, merchants and organizations in the community. Relationships are established with Social Security, AARP, Ramona Visiting Nurses Association, Care Connexxus, Inc., Hospice of the Valleys, HICAP, Franchise Tax Board, Inland Counties Legal Services, CARE, 2"d Harvest Food Sank, RTA, (Dial -a -Ride DADA Certification Center), Sodexho, HOPE, Inc., Riverside County Office on Aging, Sodexho Senior Nutrition, local slice & fire departments and many others to provide on -going services at the Center. Volunteers are also a vital part of the programs and services at the Center, providing an opportunity for older adults to give back to the community and expanding the programs and services that can be provided at the Center for the community. DC PLANNING Identify the most applicable adopted plans or strategies which the proposed project will help implement: The City of Lake Elsinore is committed to provide continuous, on -going programs and services for the older adults in Lake Elsinore and surrounding unincorporated areas of Riverside County. Through the Senior Center, and the- many programs, services and activities provided, the City can continue to provide services locally that are needed to maintain a comfortable quality of life for the older adult population in the area. Provision is made for the continuing education, socialization and recreation needs for all economic levels, with particular sensitivity to the low- income population. The Center will continue to coordinate service provision, distribute food, provide activities and programs that meet the needs of the seniors and keep abreast of legislation and resources that will benefit the older population. 9 ACENDA ITEM End. yS PACE OF APPLICATION CERTIFICATION Undersigned hereby certifies that: 1. The information contained in the project application is complete and accurate. 2. The applicant shall comply with all Federal and County policies and requirements affecting the CDBG program. 3. The federal assistance made available through the CDBG program funding is not being utilized to substantially reduce the prior levels of local financial support for community development activities. 4. The applicant shall maintain and operate the facility for its approved use throughout its economic life. 5. Sufficient funds are available to complete the project as described, if CDBG funds are approved. 6. I have obtained authorization to submit this application for CDBG funding. (DOCUMENTATION ATTACHED). Type /print name and title of Authorized Representative Signature of Authorized Representative y�c a/J�! l� The following are attached to this application: Yes No ( X } ( ) I Map of area served ( X) ( ) II Management Information ( ) ( ) III Organizational history (Non- Profits only) ( ) ( } A) Articles of Incorporation ( ) ( ) B) Current Board of Directors ( X) ( ) IV Income and Expense Statement `� 10 y5 AGENDA ITEM NO. PACER& -- fF / � A#-,, AGENDA 1. TEMI N0. `iS -- PACE v m W AcgNDA ITEM NO. PAOF Cl)BG APPLICATION #5 AGENDA ITEM NO. L4 � PROPOSAL NUMBER Date Received CITY OF MURRIETA COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM APPLICATION FORM I. GENERAL INFORMATION: Name of Primary Activity Sponsor: Boys & Girls Clubs of Southwest County — Lake Elsinore Unit Mailing Address: P.O. Box 892349 Telephone Number: 951 -699 - 1526x204 Contact Person: Kathleen Smith Title: Director of Finance Address (If .different from above): Southeast Corner of Lake Street and the Future Nichols Road, Lake Elsinore, CA 92530 Amount of CDBG Funds Requested: $30,000.00 Where will the activity occur and what is the geographic scale of the proposed activity (community, city, and region) being specific? Lake Elsinore, Riverside, CA II.ORGANIZATIONAL HISTORY: (This is applicable only if you are a non - profit organization.) Please provide a list of your current Board of Directors (Label as Attachment II). Date Organization founded: 1990 Date Organization incorporated as a non -profit organization: September 4,1990 Number of volunteers: 600 Number of paid staff: 59 Federal identification number: 33- 0475756 State identification number: 1671809 Attach: ARTICLES OF INCORPORATION AND BY -LAWS (Label as Attachment ILA) III. PROJECT ACTIVITY: (check the applicable category your application represents) Real Property Acquisition X Public Service Housing _Capital Equipment (Fixed) Rehabilitation/Preservation (please provide picture of structure) Public Facilities Improvements (construction) Planning/Studies Other: explain - AGENDA ITENI NO. PAG'EJ" -11�—, s../ IV. PROJECT NARRATIVE: A. Name of Project: Lake Elsinore Unit — The Learning Connection Specific Location of Project: Southeast Corner of Lake Street and the Future Nichols Road, Lake Elsinore, CA 92534 (Include street address, if applicable) B. Provide a detailed description of the proposed project by describing precisely what will be Accomplished with the requested funds_ I. Provide a detailed Project Description in quantifiable terms: (attach additional sheets if necessary) The Boys & Girls Clubs of Southwest County — Lake Elsinore Unit is requesting a grant to provide an urgently needed before & after school program to underserved youth in the City of Lake Elsinore- Tbt funding will be used for a scholarship program for low-income families. The Lake Elsinore Unit will be providing programming, sports leagues and transportation for youth grades 1 -12. The facility will be open from 6:30 AM to 7 :40 PM, Monday through Friday. The grant will provide scholarships for 25 — 35 low - income children (depending on individual furancial need) for a whole year. 2. What are the goals and objectives of the project? The Learning Connection before and after school program was developed to meet the needs of our Lake Elsinore community in addressing the problem of "latch key" children and teens with too little to do. Today, over 1.5 million youth in California are unsupervised during their non school hours, according to the California Health and Welfare Agency. The primary reason for children being home alone after school is access to convenient, safe facilities at a reasonable cost We predict that the Lake Elsinore Unit will have over 100 kids.h nsported daily and over 1,000 youth served overall based on historical date from the Murrieta and Temecula sites. Approximately 35% of the children enrolled organizational wide in the before ,& after school program receive scholarship assistance. The scholarship rates are extended to all Boys & Girls Clubs of South west County services to include athletic leagues. AN other participants are subsidized as the cost per child is over $350.00 per month and we only charge $25000 per month. The participate subsidy funds come from fund raisers and contributions received annually by the Boys & Girls Chubs of Southwest County. The need for scholarship assistance in Lake Elsinore is great and we will turn no child away. 3. Discuss this project's benefit to low and moderate income residents to be served by this project: The funds requested from the CDBG would be used to provide enrollment subsidies or complete payment for those children whose families are unable to afford the full cost of before and after school programs and athletic leagues. The Boys & Girls Clubs SWC — Lake Elsinore Unit's programs are designed to increase the self- esteem of youth participating at the Clubs. Our youth development strategy will include educational activities focusing on personal development There will be activities offered in the following areas. character and leadership, the arts, health and life skills, the arts and sports and fitness. These activities will develop skills in getting along with others, problem solving, communications, goal setting, and decision making. . They are designed to give young people the sense that they can do something well, are competent and have individual worth. Through social and recreational activities, members will have fun while acquiring self- confidence and skUh in developing interpersonal relationships. Our teen participation activities include career exploration, the arts, money sense, technology, decision making skills, public speaking, discussing and debating important issues such as drug, premature sexual activity and alcohol abuse prevention, and publishing a club newsletter. AGENDA ITEM NIO L46- PACE OF_JC . 4. If this is a public service activity: (A) is this a NEW service provided by your agency? Yes No _X_. (B) If service is not new, will the proposed activity substantially increase the existing level of service? Explain how the service will be substantially increased. (attach additional sheets if necessary) The funding will aQow scholarship funding at the Lake Elsinore Unit IV. PROJECT NARRATIVE (Cont'd)- 5. What methods will be used for community involvement to assure that all who might benefit from the project is provided an opportunity to participate? The Boys & Girls Clubs of Southwest County — Lake Elsinore Unit will use innovative recruitment, referral and detection programs in a comprehensive initiative that directs low income, at risk young people to positive aUernadves offered at the club_ The Boys & Girls Clubs of Southwest County — Lake Elsinore Unit will develop a network of linkages with foster agencies, social service agencies, schools, local police, and community organizations From referrals by these groups, as well as through direct recruitment and outreach efforts to the community we feel that our Lake Elsinore citizens will be well aware of the help and services offered by the Clubs 6. What are the project's expected results? To provide financial and social assistance to 25 — 35 low - income youth (depending on individual fmancial need) and improve their schoolwork and social skills through our many programs 7. How will you measure and evaluate how the project meets its goals and objectives (measures should be both qualitative and quantitative)? The Boys & Girls Clubs of Southwest County — Lake Elsinore Unit will use the Boys & Girls Club of America's Case Management System as well as our web based data management system BidTrax to back and document the progress of individuals enrolled in the project on a monthly basis. Quarterly summaries will roundnely condense and digest program participation. A report on the success of project will be compiled at end of the year using the following criteria L Number ofyoung people recruited to the club for the program. 2 Participation in club activities and the rate of retention in the program. 3. Feedback from schools, police, and other community agencies 4. Feed back from participants. 5 Ethnic, family structure & income levels of participants 8. What evidence is there of long -term commitment to the proposal? Describe how you plan to continue the work (project after the grant ends? To improve fund raising through the community, corporations and foundations To increase services and youth served by adding additional sites and expanding the reach of our programs, athletic leagues and after school options by expanding the aforementioned fundraising. 9. Attach maps of proposed project's location and service area. Project Location: Southeast Corner of Lake street and the future Nichols Roast, Lake Elsinore, CA 92530 V. PROJECT BENEFIT: To be eligible for CDBG funding, a project must qualify within one of the three following categories. Indicate how the activity in this application meets one of the following categories of benefits. Indicate the source of the information provided. (Provide information for the one category your application applies to.) CATEGORY 1. Benefit to low - moderate income person (must be documented). Please identify AGi`MA 1TE -MI 140. `7J how you have documented the persons served are low - moderate income persons by providing information in either A, B, or C. A. Area Benefit: The project serves persons in the identified block groups in Census Tract which are 51% or more low /moderate income. 1990 Census Data: Census Tract and block group numbers: CT BG CT BG CT . BG CT BG CT BG CT BG # Total population in Census Tract(s) / block group (s) # Total low - moderate population in Census Tract (s) / block group(s) B. Limited Clientele: The project serves clientele that have documented their income. Identify the procedure you currently have in place to document that the clientele you serve are low - moderate income persons. The Boys & Girls Clubs of Southwest County — Lake Elsinore will document need by "B" Limited Clientele Method The Boys & Girls Clubs of Southwest County — Lake Elsinore Unit will require income verift edon at the time of application fora scholarship. We wX require a copy of the last two current pay stubs and a copy of the previous year's federal tax return, verification of social services benefits and a letter of need We will use the County of Riverside financial guidelines for CDBG Program and require current CDBG paperwork to be completed at the time of application. This information will be updated at least once per year for all pardcipatt/s. C. Clientele presumed to be principally low and moderate - income persons. The following groups are presumed by HUD to meet this criterion: Abused children, battered spouses, elderly persons, handicapped persons, homeless persons, illiterate persons and migrant farm workers. Describe your clientele to be served by the activity. Low- income children from the ages of 6 —18 years of age, in an after school program, athletics and recreational day camp setting. CATEGORY 2. Prevention or Elimination of Slums and Blight: Is the project located in a Redevelopment Area? Yes No X. If yes, attach map of area. Additionally, provide the Redevelopment Project Area (excerpts accepted) which documents the ,,--existence of slum / blight. Also document the specific redevelopment objectives pertaining to the proposed project. AGENDA ITEM NO. ` s- PACE 49___QF 4 CATEGORY 3. Documented Health or Safety Condition of Particular Urgency: Condition shall have been of recent (18 months) origin. Provide documentation which demonstrates the health or safety condition has existed only within the previous 18 months. VI. FINANCIAL INFORMATION: A. Complete the following annual budget to begin on July 1, of this year. If multi -year funding is requested, attach a budget for each additional year. If these line items are not applicable to your activity, please attach an appropriate budget. Provide total Budget information and distribution of CDBG funds in the proposed budget. TOTAL BUDGET CDBG FUNDS BUDGET SUMMARY Include CDBG Funds REQUESTED 100% of funding will be used for scholarships for low - income children. 1. Personnel A. Salaries & Wages $ (See Attached Budget) B. Fringe Benefits $ C. Consultants & Contract Services SUB -TOTAL $ 1I. Non - Personnel A. Space Costs $ B. Rental, Lease or Purchase of Equipment $ C. Consumable Supplies $ D. Travel $ E. Telephone $ F. Other Costs (Scholarships) $ 100,000.00 $30,000.00 SUB -TOTAL $ III. Planning Studies IV. Architectural/Engineering Design V. Acquisition of Real Property VI. Construction /Rehabilitation TOTAL: $100,000.00 $30,000.00 AGENDA ITEM EEO. LIS PAOF_ E3F_2 5 ,%.r+W B. Identify other funding sources; identify commitments or applications for funds from other sources to implement this activity. Attach evidence of commitment_ Fundinp, Source Amount Requested Date Available Type of Commitment United Way $35,028.00 01/01/2006 1 year C. Provide a summary by line item of your Agency's previous year's income and expense statement. See attachments of last year's audit D. If this project benefits citizens of more than one community or local jurisdictions and/or municipalities, have requests been made to those other jurisdictions: Yes X No If yes, identify sources and indicate outcome if no, please explain. We apply for CDBG funding in Temecula, Murrieta and with the Count}. E. Was this project previously funded with CDBG funds? If yes, when? Is this activity a continuation of a previously funded (CDBG) project? (explain) Yes, the program was originally funded July 95 in Murrieta, Temecula and the County. The additional funds will provide scholarships for more low income families in Lake Elsinore. VII. MANAGEMENT INFORMATION: (PROVIDE THIS INFORMATION BY ATTACHMENT). A. Describe the organization responsible for managing and operating the project including: previous similar experience, list source, and commitment of funds for operation and maintenance. Identify project manager, or person in charge of the project's day - to-day operations. The Boys & Girls Clubs of Southwest County — Lake ElsinoreUnit will be using the Boys & Girls Club of America case management system This system ensures that the Boys & Girls Clubs staff uWzes record keeping and documentation procedures that guarantee targeted youth receive the appropriate services. On a non ddy basis Club staff will document member's school performance, tracking sknipmW achievements and challenges. In addition a complete assessment based on the Boys and Girls Club ofAmerica's Commitment to Quality will be performed annually. Kathleen Smith, Director of Finance and Kiln Webb, Director of Resources will be the Case Managers. The Club has been providing programming since 1991. Funding for the Boys & Girls Club is a mixture of fee income, grants, and private donations. B. What is the role of your organization in the community? 1. To inspire and enable all youth to realize their full potential as productive, responsible, and caring citizens by providing stimulating and challenging programs through interaction with caring people. Z Youth Development Strategy a A sense of competence — The feeling there is something boys and girls can do and do well, & A sense of usefulness— The opportunity to do something of value for other people. c A sense of belonging —A setting where young people know they "fd" and are accepted d A sense of power or influence —A chance to be heard and to influence decisions. *When this strategy is fully ingdemented, self - esteem is enhanced and an environment is created which helps girls and boys achieve their full potential, 3. Provide what kids need to succeed a. A safe place to learn and grow. & Establish ongoing relationships with caring, adult professionals. c. Offer lie- enhancing programs and character development experi nom AGENDA ITEM NO. PACE4_OF -4-- 6 d Give hope and opportunity. e- Positive self-identity. f. Competencies in education, employment, social, emotional and cultural, g. Community and civic involvement h. Health and well - being. L Moral compass: honesty, sense of justice & fairness, respect, caring and spirituality. C. Timetable for Project Implementation. Indicate primary project objectives: (You may attach a time chart, if you wish). OBJECTIVE START DATE COMPLETION DATE Scholarships for low income July 1-, 2006 June 3e, 2007 children to attend our before and after school program. D. If you have never received CDBG funding from Riverside County, provide the following regarding any previous experience with other Federally funded programs. Source Actiyily Year Amt. Funds Received Funds Expended N/A VII. CITIZEN PARTICIPATION: Every project proposal MUST contain evidence of citizen participation and support for the proposal. That evidence must include documentation of at least one community meeting this year at which the specific project was discussed and opportunity given for citizen input. Describe the methods used to obtain citizen involvement and attach appropriate documentation. Attended the Citizen's meeting in Temecula and Murrieta. (Missed the Lake Elsinore meeting due to lack of prior nodi radon) IX. PLANNING: Identify the most applicable adopted plans or strategies which the proposed project will help implement: The Board of Directors of the Boys do Girls Clubs of Soutkwest County has targeted two areas ofyouth programming that are of the greatest concern to our community. The Board has targeted the latch key sitruntion that includes before and after school programming as well as, aft day camps when they are out of school The second priority is that we provide accessible youth recreation and athletic programs. Because of these goals, the scholarship program will have a direct impact The scholarships will be offered to low income families. The hours of operation will coincide with hours where parental supervision is missing. Plus, the program will be providing the children with recreational, athletic and social programs that they may not be able to participate in because Ikeir parents cannot afford then. The funding will greatly increase the participation of children from the City of Lake Elsinore at larger 9N ITEM N0. 4/5• kDA - 1AN Ja_pF_311L 7 N../ '0' APPLICATION CERTIFICATION Undersigned hereby certifies that: i. The information contained in the project application is complete and accurate. 2. The applicant shall comply with all Federal and County policies and requirements affecting the CDBG program. 3. The federal assistance made available through the CDBG program funding is not being utilized to substantially reduce the prior levels of local financial support for community development activities. 4. The applicant shall maintain and operate the facility for its approved use throughout its economic life. 5. Sufficient funds are available to complete the project as described, if CDBG funds are approved. 6. I have obtained authorization to submit this application for CDBG funding. (DOCUMENTATION ATTACHED). Type/print name and title Signature of Authorized Date: December 6, 2005 The following are attached to this application: Yes No X I) Map of area served X Il) Management information X III) Organizational history (Non- Profits only) X A) Articles of Incorporation X B) Current Board of Directors X IV) Income and Expense Statement AGENDA ITEM NO. CDBG APPLICATION AGENDA ITEM NO. q5— -- Nowt►" H. 0. P. E. , INC. HELPING OUR PEOPLE IN ELSINORE, INC _ y 29885 Second St., Unit R * Lake Elsinore, CA 92532 (951) 245 -7510 * Fax (951) 245 -7405 - 8 December 2005 Mr. David Sapp, Community Services Director, City of Lake Elsinore, 130 Main Street, Lake Elsinore, CA 92530 Dear Dave, Subject: CDBG Program - 2006 /2007 Year ,,firms r 3,5 �% .F yyz r '- del F�frt' Thank you for the opportunity to once again submit an application for funding under the above grant program. Attached are three sets of our Grant Application together with all of the requested supporting documents. You will notice that we have applied for funding at the level of $20,000 for this year — in recent years our funding, from the County, has been reduced considerably on a year on year basis, at a time when we are constantly increasing our services to the community. For example, in the current grant year (2005 -2006) the County are supplying just $5000 of CDBG funding. This is a genuine request that consideration be given to increasing our funding from previous years when reviewing our application — there is a real need in the community and we wish to do all we can to meet that need. You will see under the project narrative that we have significantly increased our Outreach activities in the community and are now reaching very many more people in need than we have been able to do in the past. Should you wish to discuss our application we are always available to meet with you and clarify any questions you may have. Sincerely, Ron Hewison Chairman & CEO ref : CDBG05 -06 /cover AGENDA rrEIr9 NC. W -- PACE �1 —OF-. PROPOSAL NUMBER Date Received COUNTY OF RIVERSIDE COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM APPLICATION FORM 1. GENERAL INFORMATION: Helping Our People in Elsinore, Inc. (H.O.P.E., Inc.) Name of Primary Activity Sponsor: Mailing Address: 29885 Second St., Unit R. Lake Elsinore, CA Zip Code 92532 -2404 Telephone Number: 951 245 7510 Fax Number: 951 245 7405 Contact Person: Ron Hewison Title: Chairman & CEO Program Manager._ Beverly Mumphrey Phone: 951 245 7510 Address (If different from above): Amount of CDBG Funds Requested: $ 20.000.00 Where will the activity occur and what is the geographic scale of the proposed activity (community, city, region) be specific? The area covers the Lake Elsinore Unified School District (Horsethief Canyon to Clinton Keith Rd) What Supervisorial District does your activity occur within? District 1 11. ORGANIZATIONAL HISTORY: (This is applicable only if you are a non - profit organization). Please provide a list of your current Board of Directors (Label as Attachment 11). Date Organization founded: December 4 1990 Date Organization incorporated as a non -profit organization April 30 1992 Number of volunteers 30 Number of paid staff 0 Federal identification number 33- 0489728 (501.c.3) State identification number c 1820572 Attach: ARTICLES OF INCORPORATION AND BY -LAWS (Label as Attachment IIA) 111. PROJECT ACTIVITY. (check the applicable category your application represents) _ Real Property Acquisition X Public Service Housing _ Capital Equipment (Fixed) — Rehabilitation /Preservation (please provide picture of structure) _ Public Facilities Improvements (construction) Other: (provide description) AGENDA ITEM NO. 9y PAOE'_OF� 4 Z z� �w H MOzMNO,,M C) �O v, O �W ^� 44 in w O .� �C CLI A O � W l N u W a c x w z� �w H N O n N a z 0 n h N a M h a V O N O v ao 00 a N ACENDA ITEVA NO. -q5- PACC OF MOzMNO,,M C) v, O o cn kn in Q kn N M V1 N N kn � N N c N QN, as ai ccS o A 0 o cq cd ca U � x cci c O O O V %0 N W-1 . - 00 N O [� N M (� O ON N %,O � O O, \�O 00 \,D N O-, I'D kn M .-. O M Vl M O [- O, N - 00 d' M . 0, M O d c� r t� 'tt W kD kn kn tn kn tn kn kn kn F rnrnrnrnrnrna�a, 0 0 0 0 0 0 0 0 0 N 0 N 0 N 0 N 0 N 0 N 0 N 0 N (� vi O d g vi 0 ct 0 :t 0 v) 0 rt 0 0 to 0 0 o N N o N 0 N 0 N (=> N N N Q .� a �0(G V � °'ax .Q ad 4) 0 U.� �. Q) .� O �3 d °�' o . Con Cd H a >C v U U cn W N O n N a z 0 n h N a M h a V O N O v ao 00 a N ACENDA ITEVA NO. -q5- PACC OF IV. PROJECT NARRATIVE: A. Name of Project: Helpinq Our People in Elsinore Inc. (H.O.P.E., Inc.) Specific Location of Project: 29885 2nd Street, Unit R, Lake Elsinore CA 92532 (Include street address, if applicable) - -"00 B. Provide a detailed description of the proposed project by describing precisely what will be accomplished with the requested funds. 1. Provide a detailed Project Description in quantifiable terms: (attach additional sheets if necessary) H.O.P.E. services many groups within the senior, low- income, rehabilitating and homeless communities. Attachment A (Categories of Service) outlines the pantry services we offer to seniors and low- income families. Each of these clients receives 12 days of food (3 meals per day) of a balanced menu. Our menus are adjusted to accommodate the number in the family. In recent years we have averaged a distribution rate of 70,000 meals per year. We partner with three rehabilitation homes for men and donate food and other items to them on a regular basis. We also partner with a local Downtown Street Food Bank twice per month where food and clothing items are distributed to families in need. In addition to directly supplying food and donated clothing to the homeless we also partner with a local organization that feeds the homeless regularly. We partner with various organizations in the area and supplement their outreach activities by supplying bread and food products. H.O.P.E. operates with an all- volunteer group – no salaries or stipends are paid. Volunteers use their own vehicles for the pick up of bread and other food products – there is no reimbursement to volunteers for vehicle gas or maintenance costs. Our, pantry volunteers service senior and low-income clients at the pantry on Tuesday, Wednesday and Thursday of each week between the hours of 9 a.m. and 12:45 p.m. All services are available during these hours. Clients do not need appointments – they are serviced on arrival at the door. Some seniors are no longer able to visit the pantry – we have established a delivery service for these clients. We also deliver food regularly to the homeless in the downtown area. Several of our staff have been with us since the very beginning and we continue to bring in new volunteers on an ongoing basis. Senior and low - income clients arrive at H.O.P.E. and complete the sign sheet – the reception staff locates the file and determines that the family details have not changed, if there are changes the file papers are amended accordingly. if the client has not visited H.O.P.E. previously then a file is created. The order is placed with the pantry staff that then prepares the order in accordance with established, printed menus that indicate the quantities of food to be taken from the pantry shelves to meet the 3 meals per day for 12 days goal. Homeless clients who are serviced on the street do not complete the full paperwork but we do maintain a *ado record of the individuals and the dates. AcEMA ITEM �10. - PACE —OF H. 0. P. E. , INC. HELPING OUR PEOPLE IN ELSINORE, INC_ 29885 Second St., Unit R * Lake Elsinore, CA 92532 (951) 245 -7510 *Fax (951) 245 -7405 CATEGORIES OF SERVICE 1) STANDARD REFERRAL MINISTRY: Distributing 12 days, 3 meals per day, balanced, (also sugar free, fat free and salt free), packaged meals, diapers, soaps and assorted toiletry items to low - income families/individuals in need of food by referral from the Department of Public Social Services, local churches, police department, doctors and area schools. Substantiating documentation is required. 2) MINISTRY TO THE HOMELESS: Providing a special food menu to homeless persons upon presentation of proper referral and ID. 3) BREAD OUTREACH MINISTRY: Contributing bread products on a weekly basis, we have the freezer capacity to hold until needed, to the following community organizations: ➢ Various local church - related food and meal programs ➢ Head Start Pre - school sites within the LEUSD ➢ Lake Elsinore Senior Center 4) LEUSD COMMUNITY CONNECTIONS: Cooperating with public school officials to aid with food in situations where school families are in need of immediate and special assistance. 5) EMERGENCY DISASTER RELIEF MINISTRY: Helping families who suffer sudden and unexpected loss due to catastrophic plights. 6) HOLIDAY DINNERS PROGRAM: Distributing 300 400 turkey boxes with elaborate, festive meals to low - income families during Thanksgiving and Christmas. 7) 60 PLUS PROGRAM: Making available to low - income seniors 60 years of age and older with a 12 -day supply of food each month. 8) MENTALLY ILL PROGRAM: Working closely with the Intervention Team of the Riverside County Department of Mental Health, coordinating efforts to provide meal programs for the mentally ill living in our designated area. 18 October 2005 A ADEN 9A ITUA N10. q 2. What are the goals and objectives of the protect? In Our principal goal is to work with families in need and to ensure that they do not go hungry. We also work closely with the local DPSS and Community Connections offices that refer clients in need to our facility. Local churches are fully aware of our services and also refer clients to us. In addition to the pantry service we also operate a bread ministry where we pick up bread and bakery items each day from stores and partner with 10 local organizations to distribute the items in the community — we are. now distributing approximately 4000 bread and bakery items per month. In recent years we have established partnerships with stores and retail outlets that now regularly donate new clothing and household goods to us for distribution in the community. We work regularly with the following local organizations in support of their direct activities: DPSS (Lake Elsinore); Community Connections (LEUSD); Headstart (LEUSD); take Providence (Street Food Bank); Senior Center (Lake Elsinore); Fishes & Loaves (Soup Kitchen); Victory Outreach (Rehabilitation Home); Victory Life (Rehabilitation Home); Pouring out Hope (Street service to the Homeless); Various local organizations in their Outreach programs. 3. Discuss this proiect, s benefit to tow- and moderate- income residents to be served by this project: We continue to reach out to persons (seniors and low income families) who lack the means to purchase food and clothes for their families — we always attempt to offer our services while enabling recipients to maintain their pride and their dignity. Many of our clients are living on a fixed income, which has been severely impacted by the rise in rental costs in recent years. Many would not have the money to purchase food without_ having access to our facility. Our Outreach to the Homeless population removes the need for them to be on the streets asking for food, or driving them to theft to satisfy their hunger. Our Outreach to the Rehabilitation Homes enables their sponsors to take in more clients and assists these men in putting their lives back together. We believe that our services, generally, assist in lowering the crime rate in the community while allowing us to render care and compassion to those residents who would often be passed by. We strongly believe the whole community benefits from our project. AGENDA ITEM ISO. -- PA __�k —OF_ 4. if this is a public service: (A) Is this a NEW service provided by your agency? Yes_ No X . (8) If service is not new, how will the existing public service activity level be substantially increased? During the past year we have increased the number of days of food each client receives from 9 days to 12 days. The economy has resulted in more people requiring access to our services. In an attempt to `capture' more clients we have modified the qualifications for service - we believe the changes we have effected will enable us to service more. Over the past year we have considerably increased our Outreach activities via partnerships to reach the homeless, low - income families at the downtown street food bank as well as the three rehabilitation homes - all of this is beyond the original food pantry service program. It is our wish and intent to continue to increase such activities and increased CDBG funds will assist us greatly in achieving this goal. In 2004 we substantially increased our Holiday programs with an increase in the distribution of food baskets at both Thanksgiving and Christmas. Hot Meals were �-. delivered to `shut in' seniors and to the homeless at Thanksgiving. We also reintroduced our Christmas Toy Ministry and were able to distribute over 1000 gifts to children. I-. At Thanksgiving 2005 we again delivered hot meals on Thanksgiving Day to the seniors and low- income families. We, in partnership with local organizations, were able to distribute over 300 Thanksgiving Baskets to those in need. In addition we introduced a `sit down' meal for the homeless and downtown families on Thanksgiving Day - over 350 meals were served on the day. Our goal is to increase these Outreach activities again in 2006 - but funding is required to enable us to meet this need. AGENDA 1-1 110. FAtS_mk4_OF ; �r W, PROJECT NARRATIVE (Cont.): 5. What methods will be used for community involvement to assure that all who might benefit from the project are provided an opportunity to participate? During the past year we have been very active in the community with the goal of ,1400, raising the awareness of our services: a) H.O.P.E. now appears before the Lake Elsinore City Council 3 or 4 times a year and updates the Council and the residents of our programs and our progress. b) We appointed a Community Outreach Director earlier this year to promote our programs and to work with all interested local organizations on a partnership basis_ c) We have established an annual listing for each of the schools in the LEUSD to participate in a monthly school canned food drive. This alerts each school family of our activities d) We partner with two local Ladies Clubs who have `drives by food item' each month for H.O.P.E. - again alerting the community to our activities. e) We work with a local Health Club on an annual food drive - this has been very successful and we are looking to extend this to other clubs in the area f) in late 2004 we joined the Lake Elsinore Chamber of Commerce and attend their monthly meetings to brief the business community on our activities g) We attend Rotary Club meetings and outline our programs h) We work with the Lake Elsinore Historical Society on distributing donations they do not require to those in need i) We have established new partnerships with several churches in town where we are able to assist families they know have a need j) We attend the monthly Community Connections Collaborative meetings and brief participants on the available services k) We communicate regularly with the local DPSS office and have a very effective referral service with them i) We partner with a local homeless ministry and are now reaching many more of this population than ever before m) We partner with the Street Food Bank and are reaching 100+ additional families every two weeks that were previously not serviced by H.O.P.E. We wish to continue to expand our community involvement even further in the next year or so - increased funding will help us achieve this goal. Additional partnerships are being discussed. AGENDA IT EDA NO- LI J pAGE___�4F 6. What are the project's expected results? How many are expected to be served? We believe we will continue to meet the needs of the seniors and low- income families in our community — this is a growing number in the City as the local population is growing at a steady rate. We also believe that our increased Outreach activity will increase our exposure to more families in need. We estimate a minimum of 2,500 unduplicated persons will be served from our pantry operations. On Thanksgiving Day alone we estimate we touched over 1500 people. 7. How will you measure and evaluate how the project meets its goals and objectives [measures should be both qualitative and quantitative]? We prepare a daily record of the clients serviced; the number in the family and whether or not they are repeat or new clients. This daily information is incorporated into our monthly report to your office. We prepare a full set of financials each month that includes a Profit & Loss statement; a Balance Sheet; a Year on Year Profit & Loss Comparison and Donations received. The Board of Directors reviews the financials each month. At the monthly Board Meeting we review our activities in detail and consider new methods by which we can extend even further into the community. On a more mundane level — all canned food drives are counted and the numbers generated by the drive advised to the donors — this generates an interest in the success of the drives within the community and encourages greater participation in future drives. __ �t4 � _ 8. What evidence is there of long -term commitment to the proposal? Describe how you plan to continue the work (project) after the grant ends? As mentioned earlier in this application we have been in existence since 1990 and, at Nwool this time, we anticipate continued commitment to, and growth of, the programs_ We believe that the population growth in the area together with the rise in rental costs will continue to increase the need for our services. The proposed Transitional Shelter will help with the mothers and children that are homeless in our community — we anticipate working closely with the County on meeting the needs of those in the Shelter. We shall continue to work with those that are homeless and not in the Shelter. Turning to continuation of the programs after grant funding — firstly we hope that this does not occur! it is our strong feeling that we, the City and the County are partners in this project and definitely.see a continuing need for the programs. You will have read in this application of the considerable increase we have made in Outreach. This applies to not only reaching out to additional people in need but, as outlined in Section (5) above we are reaching out to the community to increase the donations we receive, primarily, in kind. We shall continue to develop this fund raising element of the organization. 9. Attach maps . of proposed project(s) location and service area. Attached is a map of the Lake Elsinore Unified School District boundaries which correspond with the areas we serve_ AGE€ DA ITEM NO. �� Z +�+ ' a � 0 CO 2 . W s Q � 1 !J L-111 M1§1 P� �O G .. V a 42 � � � � CIA) L � gt � a i jai iZ AGENDA ITE M 140. yJ ,DACE V. PROJECT BENEFIT: To be eligible for CDBG funding, a project must qualify within one of the three following categories_ Indicate how the activity in this application meets one of the following categories of benefits. Indicate the source of the information provided. (Provide information for the one category your application applies to.) CATEGORY 1. Benefit to low- moderate income persons (must be documented). Please identify how you have I-MW documented the persons served are low- moderate income persons by providing information in either A, B, or C. A. Area Benefit: The project serves persons in the identified block groups in Census Tract which are 51 % or more low/moderate income. 2000 Census Data: Census Tract and block group numbers: CT BG CT BG CT BG CT BG CT BG CT BG # Total population in Census Tract(s) / block group(s) # Total low- moderate population in Census Tract(s) / block group(s) B. Limited Clientele: The project serves clientele that have documented their income. Identify the pr oce -dune you currently have th place to document that the clientele you serve are low- moderate income persons. C. Clientele presumed to be principally low- and moderate - income persons. The following groups are presumed by HUD to meet this criterion: Abused children, battered spouses, elderly persons, severely disabled adults, homeless persons, illiterate adults, person's living with AIDS, and migrant farm workers. Describe your clientele to be served by the activity. We serve low- income residents; seniors; homeless and unemployed residents CATEGORY 2. Prevention or Elimination of Slums and Blight: Is the project located in a Redevelopment Area? Yes No. If yes, attach map of area. Additionally, provide the Redevelopment Project Area (excerpts accepted) which documents the existence of slum/blight. Also document the specific redevelopment objectives pertaining to the proposed project. CATEGORY 3. Documented Health or Safety Condition of Particular Urgency: Condition shall have been of recent (18 months) origin. Provide documentation which demonstrates the health or safety .condition has existed only within the previous 18 months. .*m./ ACENDAe "'M NO. PA6E__4�_OF- VI_ FINANCIAL INFORMATION: A_ Complete the following annual budget to begin on July 1, of this year. If these line items are not applicable to your activity, please attach an appropriate budget. Provide total Budget information and distribution of CDBG funds in the proposed budget TOTAL BUDGET - CDBG FUNDS BUDGET SUMMARY (Include CDBG Funds) REQUESTED 1. Personnel A. Salaries & Wages $ $ B. Fringe Benefits $ $ C. Consultants & Contract Services $ $ SUB -TOTAL $ $ 11. Non - Personnel A. Space Costs $ $ B. Rental, Lease or Purchase of Equipment $ $ C. Consumable Supplies $ $ D. Travel $ E. Telephone $ $ F_ Other Costs $ $ SUB -TOTAL $ $ III. Architectural /Engineering Design $ $ IV. Acquisition of Real Property $ $ V. Construction /Rehabilitation $ $ TOTAL: S S COPY OF H.O.P.E. BUDGET IS ATTACHED B. Identify other funding sources; identify commitments or applications for funds from other sources to implement this activity. Attach evidence of commitment if commitments are pending, indicate amount requested and attach documentation regarding the previous year's funding. Funding Source Amount Requested Date Available Type of Commitment C. Provide a summary by line item of your Agency, s previous year's income and expense statement. See attachment — June 2005 Financial Report D. If this project benefits citizens of more than one community or local jurisdictions and /or municipalities, have requests been made to those other jurisdictions: Yes X No _ If yes, identify sources and indicate outcome If no, please explain CDBG funding was approved for 2005 -2006 by the County of Riverside and the City of Lake Elsinore E. Was this project previously funded with CDBG funds? If yes, when? Is this activity a continuation of a previously funded (CDBG) project? (explain) Yes — we were previously funded with CDBG funds In the Year 2005 -2006 funding was: City of Lake Elsinore: $6,000 _ County of Riverside —115t District: $5,000 TEM I~�c AGENDA I . PAGE_4._._0 F . KO.P_E, Inc., Proposed 2005 -2206 Operating Budget - 4 August 2005 2003 -2004 2004 -2005 - 2005 -2006 (Actual) (Actual) (Proposed) Revenues $ Business Donations 6,700 10,000 Church Donations 6,681 7,466 10,000 Individual Donations 11,978 9,131 5,000 In Kind Donation - - 9,000 City Donation - 5,000 5,000 County Donation - - 5,000 Grants 21,000 17,000 11,000 Donations Service Org. 975 2,290 1,000 Scrip Discount 5 300 - Gift Certificates 55 200 - Total Revenues 47,394 41,387 56,000 Expenses $ Building Rent 17,360 12,400 23,880 Maintenance Expense 3,223 2,396 1,800 Office Supplies 2,486 148 600 Postage 412 166 240 Van Gas & Maintenance 938 1,325 1,795 Van Insurance 783 717 840 Telephone 963 988 1,020 Utilities 7,274 6,738 7,200 Business License 25 25 25 General Insurance 1,352 1,486 1,500 Tax Expense 35 243 240 Miscellaneous 260 135 180 Contingency - 15 480 Capital Improvements - 700 1,000 Food Purchases 9,934 7,242 7,200 Total Ex enses 45,045 34,724 48,000 Sub Total HOPE 2,349 6,633 8,000 CLOTHING FOR KIDS: Donations 3,370 3,464 4,800 Clothing Expenses 2,883 1,769 4,200 Office Expenses 41 1,367 600 Luncheons/Seminars 127 - - CFK Sub Total 319 328 0 TOTAL OPERATION 2,668 6,961 1. 8,000 For Management Purposes Only AGENDA ITEM NO. y15- PACE �aF VII. MANAGEMENT INFORMATION: (Provide this information by attachment if necessary.) A. Describe the organization responsible for managing and operating the project including: previous similar experience, Fist source, and commitment of funds for operation and maintenance_ Identify project manager, or person in charge of the project's day - to-day operations. THE ASSEMBLY OF VOTING MEMBERS: This body meets monthly and oversees all activities within the agency. The Chairperson is Ron Hewison who conducts the regular meetings during which the Assembly considers all business items relative to the corporation. Regular Agenda items include: a. Electing the Corporate Officers b. Approving the annual budget and regular expenditures c. Appointing sub - committees d. Reviewing monthly reports on the Agency activities e. Reviewing and revising policies and procedures f. Monitoring the progress of our Outreach activities g. Approving all decisions that impact the effect of H.O.P.E. within the community THE FRONT OFFICE: The office, managed by Beverly Mumphrey, is responsible for ensuring that clients receive the correct H.O.P.E.. service level contained within our Categories of Service schedule. Other specific tasks performed are: a. Allocating the daily workload to the office staff b. Assisting -with client intake paperwork c. Ensuring accurate records are maintained and filed d. Responding to all correspondence and telephone requests e. Reviewing the content of the regular menus f. Training and Scheduling Office and Pantry staff g. Acknowledging all donations THE PANTRY OPERATION The Pantry, also managed by Beverly Mumphrey, is responsible for maintaining a ready supply of the foods required for our daily operations by: a. Organizing the layout of the pantry b. Reviewing the donated goods and supplementing supplies with purchased goods when necessary c. Supervising the pantry volunteers when filling food orders d. Ensuring the pantry shelves and freezers are regularly, and accurately stocked e. Maintaining high standards for neatness and cleanliness in the pantry AO-1- We have recently reviewed our Clothing for Kids activity and are considering the future structure of this program. We shall keep you advised of the outcome of our deliberations. A_ GENDA ITEM NQ. 9S PAGS.. - 4-- "F --YY B. What is the rote of your organization in the community? H.O.P.E. operates as the principal Food Distribution point within our area — we are always seeking new partners to work with. We believe that by increasing the number of partnerships we have we are able to offer assistance to many more people in need than we would be able to do as a single unit. C. Timetable for Project Implementation. Indicate primary project objectives: (You may attach a time chart, if you wish). OBJECTIVE START DATE COMPLETION DATE Our objective is to obtain funds that will allow us to not only continue our existing operations but also to receive additional funds that will allow us to build on our Outreach activities beyond the growth that we have achieved in the past year or so. The Project Implementation will operate for the full year —1 July 2006 through 30 June 2007 D. If you have never received CDBG funding from Riverside County, provide the following regarding any previous experience with other Federally funded programs. Amt. Source Act vi Year Funds Received Funds Expended Not applicable AGENDA I'ILW: -- PAG�._.�..0 OF -� Vill. CITiZl N PARTICIPATION- Ao—• Every project proposal MUST contain evidence of citizen participation and support for the proposal. That evidence must include documentation of at least one community meeting this year at which the specific project was discussed and opportunity given for citizen input. Describe the methods used to obtain citizen involvement and attach appropriate documentation. a. Schedule IV earlier in this application gives a summary of the various community meetings we have participated in during the past year — more details of the meetings are available if required b. Attached are copies of the Minutes of a recent Continuum of Care meeting we attended which indicates the diverse groups we meet with IX. PLANNING: Identify the most applicable adopted plans or strategies which the proposed project will help implement: Our volunteer staff is dedicated to fulfilling the objectives set forth in the Categories of Service, which outlines the separate community outreach ministries we offer. We shall continue to work closely with the various agencies, such as DPSS; LEUSD; Community Connections as well as local church organizations, residents, businesses and local community leaders. ACANDA ITLM NO. y PACE OF APPLICATION CERTIFICATION Undersigned hereby certifies that: 9. The information contained in the project application is complete and accurate. 2. The applicant shall comply with all Federal and County policies and requirements affecting the CDBG program. 3. The federal assistance made available through the CDBG program funding is not being utilized to substantially reduce the prior levels of local financial support for community development activities. 4. The applicant shall maintain and operate the facility for its approved use throughout its economic life. 5. Sufficient funds are available to complete the project as described, if CDBG funds are approved. 6. 1 have obtained authorization to submit this application for CDBG funding. (DOCUMENTATION ATTACHED). Typelprint name and title Ron Hewison — Chairman & CEO of Authorized Representative Signature of Authorized Representative' DATE 30 November 2005 The following are attached to this application: Yes NO [ a ] { ] 1) Map of area served [a ] [) 11) Management information [ a ] [ ] III) Organizational history (Non - Profits only) [XI [ ] A) Articles of Incorporation [ a ] [ ] B) Current Board of Directors [ a ] [ ] IV) Income and Expense Statement S CDBG 17WRTN1200sVAppGcatio d= N"We AiDENDAI�i�tr�r y`�_. -- -m_ PAttOF� '-rent Assets sh In Bank - General Cash in Bank - Clothing for Kids Gift Certi ficates/Petty Cash PETTY CASH -CFK Total Current Assets Property and Equipment Total Property and Equipment Other Asset.-, Total Other Assets Total Assets Current Liabilities Total Current Liabilities Long -Term Liabilities le—` tal Lone -Term Liabilities Total Liabilities Capital Beginning Retained Earnings Retained Earnings Net Income Total Capital Total Liabilities & Capital H.O.P.i .- is­- Balance Sheet June 30, 2005 ASSETS $ 20,553.17 2,400.71 2,570.45 130.40 25,654.73 0.00 0.00 $ 25,654.73 LIABILITIES AND CAPITAL 0.00 0.00 0.00 $ 12,507.55 6,156.38 6,990.80 25,654.73 $ 25,654.73 Unaudited - For Management Purposes Only Y AGh11it)A 6 [ LIVl lVtr. Li J ____._____..�._ PACE 1 3 __ Pf :_ 1 Current Assets Cash In Bank - General Cash in Bank - Clothing for Ki Gift Certificates/Petty Cash PETTY CASH -CFK Total Current Assets Property and Equipment Total Property and Equipmen Other Assets Total Other Assets Total Assets $ Current Liabilities Total Current Liabilities '•ong -Term Liabilities Total Long -Term Liabilities Total Liabilities Capital Beginning Retained Earnings $ Retained Earnings Net Income Total Capital Total Liabilities & Capital $ 2004 BALANCE 20,553.17 2,400.71 2,570.45 130.40 25,654.73 H.O.P.E., Inc. Balance Sheet June 30, 2005 2003 BALANCE ASSETS 14,890.93 3,202.83 570.11 0.00 18,663.93 0.00 0.00 0.00 25,654.73 LIAB 0.00 0.00 0.00 12,507.55 6,156.38 6,990.80 25,654.73 25,654.73 0.00 18,663.93 ILITIES AND CAPITAL 0.00 0.00 0.00 12,507.55 3,488.04 2,668.34 18,663.93 18,663.93 Unaudited - For Management Purposes Only \./` V ,"now AUNUA 11 Eiji wt�. _- PACE OF vues .ne, Church Donations Income, Grants Income, Donations Individuals Income, Service Organizations Income, Scrip Discount Income, Gift Certificates Total Revenues Cost of Sales Food Purchases Holiday Food Purchases Total Cost of Sales Gross Profit Expenses Building Rent Maintenance Expense Office Supplies & Expense Postage Car Gas/Maint. Expense Van Insurance Telephone Expense Utility Expense i� ess License t al insurance Tax Expense Miscellaneous Expenses Contingency Capital Improvement Expense Total Expenses Sub -total Hope Income/Expense H.O.P.E., Inc. Income Statement For the Twelve Months Ending June 30, 2005 Current Month % $ 275.00 17.90 $ 0.00 0.00 261.00 16.99 1,000.00 65.10 0.00 0.00 0.00 0.00 1.536.00 100.00 162.08 0.00 162.08 1,373.92 10.55 0.00 10.55 89.45 1,240.00 80.73 578.00 37.63 100.90 6.57 148.00 9.64 209.70 13.65 350.26 22.80 89.79 5.85 422.65 27.52 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 15.00 0.98 0.00 0.00 3,154.30 205.36 <1,780.38> <115.91> $ Year to Date 7,465.50 17,000.00 9,131.00 7,290.00 300.00 200.00 41,386.50 6,95 7.15 285.00 7,242.15 34,144.35 12,400.00 2,395.71 148.05 165.85 1,324.87 717.39 987.99 6,737.93 25.00 1,486.19 242.85 135.00 15.00 700.00 27,481.83 6,662.52 16.65 37.90 20.36 1625 0.67 0.45 92.28 15.51 0.64 16.15 76.13 27.65 5.34 0.33 0.37 2.95 1.60 2.20 15.02 0.06 3.31 0.54 0.30 0.03 1.56 61.27 14.85 Donations, Clothing for Kids $ 0.00 0.00 $ 3,464.00 7.72 Clothing Expenses, CFK 136.52 8.89 1,768.62 3.94 Office Expenses, CFK 0.00 0.00 1,367.10 3.05 Sub -total Clothing for Kids <136.52> <8.89> 328.28 0.73 Total Net Income $ <1,916.90> <124.80> $ 6,990.80 15.59 For Management Purposes Only Page I AIGENDAt ITEM No.- 7S H.O.P.E., Inc. For Management Purposes Only Page: 1 4k4Qj'jW" . Y b &' -- .- L15- PACE OF YTD Comparsion Income Statement For the Twelve Months Ending June 30, 2005 Year to Date 2004 % Year to Date 2003. % Revenues Income, Business Donations $ 0.00 0.00 $ 6,700.00 13.20 Income, Church Donations 7,465.50 16.65 6,681.00 13.16 Income, Grants 17,000.00 37.90 21,000.00 4137 Income, Donations Individuals 9,131,00 20.36 11,978.40 23.60 Income, Service Organizations 7,290.00 16.25 975.00 1.92 Income, Scrip Discount 300.00 0.67 5.00 0.01 Income, Gift Certificates 200.00 0.45 55.00 0.11 Donations, Clothing for Kids 3,464.00 7.72 3,370.00 6.64 Total Revenues 44,850.50 100.00 50,764.40 100.00 Cost of Sales Food Purchases 6,957.15 15.51 9,933.89 19.57 Holiday Food Purchases 285.00 0.64 0.00 0.00 Total Cost of Sales 7,242.15 16.15 9,933.89 19.57 Gross Profit 37,608.35 83.85 40,830.51 80.43 Expenses Building Rent 12,400.00 27.65 17,360.00 34.20 Maintenance Expense 2,395.71 5.34 3,222.64 6.35 Office Supplies & Expense 148.05 0.33 2,486.16 4.90 Postage 165.85 0.37 411.75 0.81 Car Gas/Maint. Expense 1,324.87 2.95 938.46 1.85 Van Insurance 717.39 1.60 782.98 1.54 Telephone Expense 987.99 2.20 963.17 1.90 Utility Expense 6,737.93 15.02 7,273.67 14.33 Business License 25.00 0.06 25.00 0.05 General Insurance 1,486.19 3.31 1,352.19 2.66 Tax Expense 242.85 0.54 35.00 0.07 Miscellaneous Expenses 135.00 0.30 260.00 0.51 Contingency 15.00 0.03 0.00 0.00 Capital Improvement Expense 700.00 1.56 0.00 0.00 Clothing Expenses, CFK 1,768.62. 3.94 2,672.41 5.26 Office Expenses, CFK 1,367.10 3.05 251.74 0.50 Luncheons/Seminars, CFK 0.00 0.00 127.00 0.25 Total Expenses 30,617.55 68.27 38,162.17 75.18 Net Income $ 6,990.80 15.59 $ 2,668.34 5.26 For Management Purposes Only Page: 1 4k4Qj'jW" . Y b &' -- .- L15- PACE OF Page 1 7/1/05 at 10:57:41 -98 H.O.P.E., Inc. Cash Disbursements Journal For the Period From Jun 1, 2005 to Jun 30, 2005 litter Criteria includes: Report order is by Date_ Report is printed in Detail Format. Date Chec Account Description Line Description Debit Am Credit A 1,240.00 6/1105 2728 Building Rent Cash In Bank - General LAMBERT BUSINESS 1,240.00 PROPERTY 25.08 6/5/05 2729 Food Purchases 25 Cash U Bank - General BEV MUMPHRY -08 6/5/05 2730 Maintenance Expense 300.00 300.00 Cash In Bank - General MIKE MEDINA 6/6105 2731 Maintenance Expense 39.00 39.00 Cash In Bank - General AMY PEREZ 6/7/05 2732 Telephone Expense 89.79 89.79 Cash In Bank - General VERIZON 421.52 6 /7/05 2733 Utility Expense Cash In Bank- General SO. CALIFORNIA EDISON 421.52 6/10/05 2734 Food Purchases 68'87 68.87 Cash In Bank - General STATER BROTHERS 6/10/05 2735 Food Purchases 43.05 43.05 Cash In Bank- General DEJONG'S DAIRY 6/10/05 2736 Car Gas/Maint. Expense 67.00 67.00 Cash In Bank - General DMV RENEWAL 6/10/05 2737 Van Insurance 350.26 350.26 Cash In Bank - General STATE FARM INS 6/14/05 2738 Postage - 148.00 Cash In Bank - General POSTMASTER 148.00 6/14/05 2739 Office Supplies & Expense SCALE 100.90 Cash In Bank - General COLLEEN WATERMANN 100.90 6115/05 2740 Car Gas/Maint. Expense 142.70 Cash In Bank - General EXXON/MOBIL, 142.70 6/15/05 2741 Contingency 15'00 Cash In Bank - General BARBARA ALONGI 15.00 6/20/05 2742 Maintenance Expense 39.00 Cash In Bank - General AMY PEREZ 39.00 6/30/05 2743 PETTY CASH -CFK 200.00 Cash In Bank - General RITA PURPURA 200.00 6/30/05 2744 Maintenance Expense 200.00 Cash In Bank - General RIVERSIDE TOP SCALE 200.00 6/30/05 2745 Food Purchases 25.08 Cash In Bank - General BEVERLY MUMPHREY 25.08 yS" �gG>rNDA tTE OF 31q- __ 7/1/05 at 10:57:43.99 Page-2 H.O.P.E., Inc. Cash Disbursements Journal For the Period From Jun 1, 2005 to Jun 30, 2005 Filter Criteria includes: Report order is by Date. Report is printed in Detail Format. .emu Date Chec Account Description Line Description Debit Am Credit A 6/30/05 2746 Utility Expense 1.13 Cash In Bank - General THE GAS COMPANY 1.13 Total 3,516.38 3,516.38 AGENDA ITEM loo. C157 PAGE�_o�� 7/1/05 at 10:56:5137 Page I H.O.P.E., Inc. Account Reconciliation As of Jun 30, 2005 1010 - Cash In Bank - General Bank Statement Date: June 30, 2005 liter Criteria includes: Report is printed in Detail Format. Beginning GL Balance 22,233.55 Add: Cash Receipts 1,536.00 Less: Cash Disbursements <3,516.38> Add <Less> Other 300.00 Ending GL Balance 20,553.17 Ending Bank Balance 23,420.09 Add back deposits in transit Feb 28, 2002 JE -1 Total deposits in transit Jun 30, 2002 JE -1 140.40 <Less> outstanding checks JE -1 <500.00> Aug 31, 2003 JE -1 Nov 15, 2002 2305 QS.OQ> <500.00> Apr 8, 2004 2555 <10.00> Jun 30, 2005 Aug 19, 2004 2603 <5.00> le- Jun 30, 2005 2743 <200.00> 140.00 Jun 30,:2005 2744 <200.00> Jul 31, 2003 Jun 30, 2005 2745 <25.08> JE -2 Jun 30, 2005 2746 <1.13> Total outstanding checks Add <Less> Other Feb 28, 2002 JE -1 3,337.14 Jun 30, 2002 JE -1 140.40 Apr 30, 2003 JE -1 <500.00> Aug 31, 2003 JE -1 115.53 Jan 31, 2005 JE -1 <500.00> May 31, 2005 JE -I 100.00 Jun 30, 2005 JE -1 100.00 Sep 30, 2002 JE -2 597.19 May 31, 2003 JE -2 140.00 Jun 30, 2003 JE -2 <420.00> Jul 31, 2003 JE -2 165.01 Oct 31, 2003 JE -2 410.64 Jan 31, 2004 JE -2 434.67 Jun 30, 2004 JE -2 1,718.14 Dec 31, 2004 JE -2 <1,964.00> Jan 31, 2002 JE -3 <4,651.65> �-. Jun 30, 2003 JE -3 270.00 Nov 30, 2003 JE -3 <2,700.00> <466.21> AGEINDA ITEM N0. ys PACE_ 7/1/05 at 10:56:53.19 H.O.P.E., Inc. Account Reconciliation As of Jun 30, 2005 1010 Cash In Bank - General Bank Statement Date: June 30, 2005 Filter Criteria includes. Report is printed in Detail Format. Dec 31, 2004 JE -3 1,500.00 Apr 30, 2005 JE -3 100.00 Jun 30, 2005 JE -3 200.00 Nov 30, 2002 JE4 200.42 Nov 30, 2003 JE4 407.41 Mar 31, 2002 JE -5 <2,600.00> Jul 31, 2002 JE -5 332.27 Sep 30, 2004 JE -5 666.12 Total other Unreconciled difference Ending GL Balance Page 2 <2,400.71 > 20,553.17 on AGENDA ITEM WQQ ., PACE _� � 7/1/05 at 10 :56:48.50 H.O.P.E., Inc. Cash Receipts Journal For the Period From Jun 1, 2005 to Jun 30, 2005 Filter Criteria includes: Report order is by Check Date. Report is printed in Detail Format. Page: 1 /"" Date Account Description Transact Line Description _ Debit Amnt Credit Amat 6/20/0 Income, Donations Individuals 06/20/05 DUGAS Income, Donations Individuals ANONOMYOUS Income, Donations Individuals BARRY Income, Donations Individuals CASH Income, Church Donations KING'S DAUGHTER Income, Donations Individuals KIGHT Income, Church Donations I ST LUTHERAN CHURCH Income, Church Donations CL COMMUNITY CHURCH Income, Service Organizations CL WOMAN'S CLUB Cash In Bank - General DEPOSIT 100.00 1.00 10.00 50.00 100.00 100.00 50.00 125.00 1,000.00 1,536.00 1,536.00 1,536.00 AUNDA ITEM NO.__.. 45_ P c �► PI 3/ CORPORATION DIVISION I, MARCH FONG E U, Secretary of State of the State of California, hereby certify: That the annexed transcript has been compared with the corporate record on file in this office, of which it purports to be a copy, and that same is full, true and correct. IN WITNESS WHEREOF, I execute this certificate and affix the Great Seal of the State of California this MAY -11992 RLOAC& 7WI �� Secretary of State ENDAITEM Ho. PAM.- OF SEC/STATE FORM CE -107 gao 96 40888 1820572 ARTICLES OF INCORPORATION OF Helping Our People in Elsinore, INC. I ENDORSED FILED In ftw office of she Smeary of Slane of *f, sl+aM os r j.*-wA APR 3 01992. The name of the corporation is "Helping Our People in Elsin fikS,,h,od II A. This corporation is a nonprofit public benefit corporation and is not organized for the private gain of any person. It is organized under the Nonprofit Public Benefit Corporation Law for charitable purposes. B. The specific purpose of this corporation is to provide food, clothing and shelter to needy people. III The name and address in the State of California of this corporation's initial agent for service of process is James-T. Winkler 31594 Railroad Canyon Road Suite C Canyon Lake California 92587. IV A. This corporation is organized exclusively for charitable purposes within the meaning of Section 501(c)(3) of the Internal Revenue Code. B. No substantial part of the activities of this corporation shall consist of carrying on propaganda, or otherwise attempting to influence legislation, and the corporation shall not participate or intervene in any political campaign (including the publishing or distribution of statements) on behalf of any candidate for public office. V The property of this corporation is irrevocably dedicated to charitable purposes and no part of the net income or assets of this corporttion shall ever inure to the benefit of any director, officer or member thereof or to the benefit of any private person. Upon the dissolution or winding up of the corporation, its assets remaining after payment, r --- ��.•�.+o.,t _ of all debts and liabilities of this ��� ,� CUMA ITEM NO. PACE MAU "t OF HELPING OUR PEOPLE IN ELSINORE, INC. PREAMBLE RECOGNIZING OUR UNITY IN CHRIST AND OUR COMMON PRACTICE IN THE CHRISTIAN FAITH, DESIRING TO HEED AND FULFILL THE LORD'S IMPERATIVE AS STATED IN MATTHEW 25:31 -90, MINDFUL OF OUR CHRISTIAN PRIVILEGES AND DUTIES, AND WISHING TO OBSERVE ORDERLY COOPERATION, WE THE MEMBERS OF HELPING OUR PEOPLE IN ELSINORE, INCORPORATED OF LAKE ELSINORE, CALIFORNIA, ADOPT THE FOLLOWING AMENDED BYLAWS, AND DO PROVIDE THAT THE FOLLOWING.ARTICLES SUPERSEDE AND REPLACE -THE FORMER BYLAWS THAT WERE ADOPTED AT A DULY CALLED MEETING OF THIS CORPORATION ON SEPTEMBER 9, 1991. AC yDA ITEM NO' PA, OF -2- ARTICLE I - NAME AND INCORPORATION 1. The name of this organization shall be HELPING OUR PEOPLE IN ELSINORE, INC. 2. For the purpose of these Bylaws, HELPING OUR PEOPLorlsim 1 ELSINORE, INC. is hereafter designated as H.O.P.E., Inc., P Y "this corporation." 3. ff.O.P.E., Inc. shall be incorporated under the laws of the State of California as a Non - profit Public Benefit Corporation. ARTICLE II - OFFICES 1. The principal office of this corporation for the transaction of business is located at 29885 2nd Street, Unit R -S, in Lake Elsinore, California. 2. This corporation is hereby granted full power and authority to change the principal office of the corporation from one location to another in Riverside County, California. Any such change shall be noted by the Secretary in these Bylaws, but shall not be considered an Amendment of the Bylaws. - ARTICLE III - STATEMENT OF PURPOSE 1. The object and purpose of this corporation shall be to propagate the gospel of Jesus Christ by reaching out to those persons who are hungry and who need assistance and renewed hope. 2. To fulfill this object and purpose, this corporation shall provide and dispense food to individuals and families in compliance with the regulations laid down by the governing body of this corporation in the Rules of Qualification. Furthermore, this corporation shall dedicate itself to an ongoing, caring ministry of service to others. ARTICLE IV - STATEMENT OF FAITH 1. The members of this corporation adhere in faith to the following common symbol, held in the highest regard in all of Christendom, called the Apostolic Creed: I believe in God, the Father almighty, creator of heaven and earth. I believe in Jesus Christ, His only Son, our Lord. He was ,.-. conceived by the power of the Holy Spirit and born of the Virgin Mary. He suffered under Pontius Pilate, was crucified, died, and was buried. He descended into hell. On the third day He rose again. fie ascended into heaven, and is seated at the right hand of the Father. He will come again to judge the ��0A ITEM NO. ` -3- living and the dead. I believe in the Holy Spirit, the holy-catholic Church, the communion of saints, the forgiveness of sins, the resurrection of the body, and the life everlasting. 2. Subscription to this ancient ecumenical confession shall hence- forth be required of all members of this corporation. ARTICLE V - GENERAL MEMBERSHIP 1. General Membership in this corporation shall be extended to all those who give of their time and God -given talents on a regular basis to advance the work of H.O.P.E., Inc., and who exercise genuine dedication to the purpose of the organization. 2. One is in membership who renders consistent devotion to the task of operation of this corporation . in any capacity, and shall thereby be known as a "volunteer," receiving no compensation for his or her work. 3. A complete and current membership list of all volunteers shall be maintained at all times by the office management of this corporation, along with the proper addresses and phone numbers therein. 4. There shall be no limitations.placed upon this corporation as to the number of members it shall enlist. Furthermore, it shall have no membership restrictions with respect to race of color. 5. Membership in this corporation shall be non - assessable. ARTICLE VI - PARTICIPATION OF AREA CHURCHES 1. This corporation shall encourage pastors and lay people associated with a local church in the area, who ascribe to this corporation's stated purpose and who are in agreement with its Statement of Faith, to affiliate with R.O.P.E., Inc., and to help sponsor its daily operation with a certain degree of responsibility. 2. This corporation shall foster goodwill among the congregations within the area of Elsinore, so as to generate the support of their prayers, food donations and financial offerings. AGE N DA ITEPA 140. �5 Pac___7� _OF 3r -4- ARTICLE VII - ASSEMBLY OF VOTING MEMBERS 1. The governing body of this corporation shall be known as the Assembly of Voting Members. 2. The power and authority of this corporation, necessary to fulfill its purpose, shall be exercised through the Assembly meeting, which shall be called and conducted in conformity with civil laws and the provisions of the Bylaws of the corporation. 3. Regular meetings of the Assembly of Voting Members shall beheld monthly at a time and place specified by the Assembly. 4. A special meeting of the Assembly may be called by action of the Assembly, by the chairperson, by the vice- chairperson, or by petition of at least 20% of the voting members. Special meetings shall be held only after a three (3) days notice is given to all members. Such a notice shall state the time, the place, and the purpose of the meeting. Only the business for which a special meeting has been called shall be! transacted. 5. A quorum for any regular or special meeting of the Assembly shall be 40% of the voting members. 6. The Assembly of Voting Members shall conduct all manner of business necessary for the well -being of this corporation, including the following: (a) set policy; (b) approve the annual budget; (c) elect corporate officers; (d) appoint committees; (e) acquire real and personal property by gift, devise, purchase, or other lawful-means; (f) use its property, owned, leased or rented, for any and all activities consistent with its purpose; (g) sell, mortgage, lease, transfer, or otherwise dispose of its property by any lawful means; (h) enter into contract; (i) sue or be sued; (j) maintain and review its, insurance program. 7. The Assembly of Voting Members shall appoint from time to time such committees it may deem important to help the Assembly with its ongoing responsibilities, and shall approve any action taken -.by them. AGENDA ITEM N0. y� PACE J O_ -S- 8. This Assembly shall appoint an Assembly Clerk who shall in turn keep an accurate record of the roster of voting members. The roster shall be made available at each meeting of .the Assembly. 9. Voting Members of the Assembly may vote by act of proxy upon sub- mission of a written notice prior to the time of the meeting. 10. Robert's Rules of Order, as amended from time to time, shall govern the meetings of the Assembly, insofar as those rules are not inconsistent with or in conflict with these Bylaws, or the law, or rules governing agenda, motions, and related matters. ARTICLE VIII - MEMBERSHIP IN THE ASSEMBLY 1. Those persons desiring to serve in the Assembly of Voting Members shall so express their desire by signing the roster of voting membership. 2. Qualification for membership in the Assembly shall be: (a) one who is in the general membership of H.O.P.E., Inc.; (b) one who shows commitment to the stated purpose and statement of faith of this corporation; (c) one who leads an exemplary Christian life in word and deed. 3. There shall be no limitation as to the number of members that m; serve in the Assembly at any given time. 4. Voting Members shall regularly attend all meetings of the Assembly, unless an excused absence is granted by the Assembly in session when a member is absent. A voting member shall be diligent in the work of the Assembly, upholding it with continued support and prayer. ARTICLE IX - OFFICERS 1. The following officers of this corporation shall be elected by the Assembly of Voting Members, each for a term of two (2) years: Chairperson Vice- Chairperson Secretary Assistant Secretary Chief Financial Officer Assistant Financial Officer Public Relations Officer Assistant Public Relations Officer 2. Those persons nominated to fill an office in this corporation shall be members serving in the Assembly. -6- 3. Each officer shall serve in staggered terms; thus one -half (1/2) of the officers shall stand for election each _year. Officers shall serve without compensation. 4. All elected officers shall be eligible for re- election without limitations on the number of terms they may serve, provided they continue to meet the qualifications of membership provided in ARTICLE VIII of these Bylaws. ARTICLE X - DUTIES OF THE OFFICERS 1. The CHAIRPERSON is the general manager and Chief Executive Officer of the corporation, and shall preside at all meetings of the Assembly and the Executive Committee. 2. The VICE- CHAIRPERSON shall preside at all meetings in the absence of the Chairperson and oversee the work of the business office. 3. The SECRETARY shall record all business of the meetings held by the Assembly and the Executive Committee. 4. The ASSISTANT SECRETARY shall act in the full capacity of the Secretary during his or her absence. 5. The CHIEF FINANCIAL OFFICER shall be responsible for deposits, disbursing funds, preparing financial statements for the meetings of the Assembly, and presenting yearly reports. The CHIEF FINANCIAL OFFICER shall sign all checks. However, at times of inconvience, a check may bear the signature of the Assistant Financial Officer or that of the Chairperson. 6. The ASSISTANT FINANCIAL OFFICER shall act in the full capacity of the Chief Financial Officer during his or her absence. 7. The PUBLIC RELATIONS OFFICER shall be responsible for contacting interested individuals, businesses, churches, community and service organizations to keep them apprised of the ongoing work of H.O.P.E., Inc. and solicit their involvement. This officer shall also publicize the noteworthy activities of the corporation in local newspapers, TV, etc. 8. The ASSISTANT PUBLIC RELATIONS OFFICER shall work closely with the Public Relations Officer, assisting in those responsibilities assigned to that officer. AGENDA ITUA NO.— 1 -7- ARTICLE XI - EXECUTIVE COMMITTEE 1. The Executive Committee shall be comprised of the eight (8) elected officers of this corporation. 2. This committee may meet to: (a) consider future agenda of the Assembly of Voting Members; (b) discuss matters of an emergency nature; (c) review present office and pantry procedures; (d) evaluate the over - all operation of the organization.- 3. The'Executive Committee shall prepare the annual budget. 4. The Executive Committee shall appoint a historian, whose task will be to preserve the historical story of H.O.P.E., Inc. 5. The Executive Committee shall oversee the work of all committees appointed by the Assembly of Voting Members, such as Nominating, Grant, Pantry and USDA Commodities. ARTICLE XII - TERMINATION OF MEMBERSHIP 1. Any member who in the judgment of the Assembly of Voting MemberF shows no interest in participating in the life and work of this `.I` corporation, or who has given notice of .a voluntary resignation, shall no. longer be counted in the membership statistics of this corporation. 2. The Assembly of Voting Members may take action of dismissal of any member due to non - participation over a period of at least ninety (90) days, except for instances of illness, extended travel or personal hardship. ARTICLE XIII - RECORDS, REPORTS AND CORPORATE SEAL 1. This corporation shall keep adequate and correct records of accounts, minutes of meetings, city, county and private grants, gifts and donations, as well as other transactions deemed important. It shall also maintain a correct and current membership list. 2. This corporation shall furnish at the close of each fiscal year an annual report, highlighting its activities, and a financial statement of record. The annual report shall be entered into the corporation's files. 3. The office management of this corporation shall have custody of the corporate seal and affix it in all appropriate cases to all corporation documents. Failure to affix the seal shall not, however, affect the validity of any instrument. "No lAUNUA11EJAp�1o. FAA sf__JQ_0F 10�1 ARTICLE XIV — FUNDS AND PROPERTY 1. All funds and property of this corporation are irrevocably dedicated to charitable purposes, meeting the requirements for exemption provided by the regulations set forth in the Revenue and Taxation Code of the State of,California, as now enacted or as may hereafter be amended. 2. The power to manage all funds and property is invested in the Assembly of Voting Members. ARTICLE XV - DISSOLUTION Should this corporation cease to do business and be dissolved, all funds and property remaining after payment of debts shall be distributed to a corporation, trust, foundation, or other organization and existing for religious and /or charitable purposes, which would then qualify under the provisions set forth in the Internal Revenue 'Code, as now enacted or as may hereafter be amended. ARTICLE XVI - BYLAWS 1. This corporation shall-adopt such Bylaws as may be found necessary to,fulfill the object and purpose of the organization. 2. Bylaws may be adopted or amended at any legally called meeting of the Assembly of Voting Members by a two - thirds majority vote of those present and voting, provided the proposed amendment has been announced to all members of the Assembly at least two (2) weeks prior to the meeting. 3. If a proposed amendment fails of adoption, it may be amended by majority vote of those present and voting; and adopted without change by a two - thirds majority of those present and voting at the same meeting. 4. No Bylaws may conflict with the Articles of Incorporation of this corporation. Att',iKDA ITEM t„ o. Y�/ CERTIFICATION OF THE SECRETARY Helping our People In Elsinore, Inc. A California Non - profit Public Benefit.Corporation I hereby certify that I am the duly elected and acting Secretary of said Corporation, and that the foregoing Bylaws are a true and correct copy of the Amended Bylaws adopted unanimously by the members present and voting at a meeting of this corporation called for that purpose and held at Lake Elsinore, California on 1995. H.O.P.E., *'WDA FTE 1'40- OF CDBG APPLICATION #7 AGENDA ITEM N0. qS PACE q,3--OF-3 t -` ,MCASA Court Appointed Special Advocates FOR CHILDREN CASA FOR RIVERSIDE COUNTY, INC. December 6, 2005 Mr. Dave Sapp Community Services Director City of Lake Elsinore 130 South Main Street Lake Elsinore, CA 92530 Dear Dave: r ut Donate online at www.casariversidecounty.org .� Enclosed you will find our 2006 — 2007 CDBG funding application to the City. We would be pleased to make a follow -up presentation as and if appropriate. Please let us know the date, time and place. If you have any questions in advance of the review or a presentation, please contact us at your convenience. All of us here at the Court Appointed Special Advocates (CASA) look forward to hearing from the City with a great sense of hope. Sincerely, Marilynn ates Executive Director Doug sner Director of Development ,-No NNUO NDIO P.O. Box 3008 O RIVERSIDE 9991 County O M URRIETA •Southwest Justice Center United N"001 + Farm Road 30755 -D Auld Road, Suite 1226 wed 4 Indio, CA 92202 -3008 Riverside, CA 92503 Murrieta, CA 92563 Phone: (760) 346 -2497 Phone: (951) 358 -4305 Phone: (951) 304 -5220 United Way Desert Fax: (760) 863 -7431 Fax: (951) 358 -4302 Fax: (951) 304 -5210 l �0 MEMBER OF NATIONAL CASA ASSOCIATION AGENDA i f -M NO;_ - - nApw PROPOSAL NUMBER: Date Received: CITY of LAKE ELSINORE COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM APPLICATION FORM I. GENERAL INFORMATION: Name of Primary Activity Sponsor: CASA (Court Appointed Special Advocates) for Riverside County, Inc. Mailing Address: P O. Box 3008 Indio CA Zip Code: 92202 -3008 Address (If different from above): Telephone Number: ( 760) 863 -2475 Contact Person: Marilynn Yeates Title: Executive Director Amount of CDBG Funds Requested: $10,000.00 Where will the activity occur and what is the geographic scale of the proposed activity (community, city, region) be specific? The City of Lake Elsinore, Zip Codes 92530 and 92532. 11. ORGANIZATIONAL HISTORY: (This is applicable only if you are a non - profit organization.) Please attach a list of your current Board of Directors (Label as Attachment 11) Date Organization founded: April 1990 Date Organization incorporated as a non - profit organization: April 1990 s Number of volunteers: 185 Number of paid staff: 8 Federal identification number: 33- 0596888 State identification number: 4028721 -1 Attach: ARTICLES OF INCORPORATION AND BY -LAWS (Label as Attachment IIA) Ill. PROJECT ACTIVITY: (check the applicable category your application represents) Real Property Acquisition X Public Service _ Housing _ Capital Equipment (Fixed) _ Rehabilitation/Preservation (please provide picture of structure) _ Public Facilities Improvements (construction) _ Planning /Studies Other: explain CASA Volunteers advocate for abused, neglected, and /or abandoned children who are from foster or group homes and in the Juvenile Court dependency system. AGENDA ITEM NO �J pACE OF . At. PROJECT NARRATIVE: Name of Project: City of Lake Elsinore CASA Volunteer Recruitment (Include street address, if applicable) Provide a detailed description of the proposed project by describing precisely what will be accomplished with the requested funds. I. Provide a detailed Proiect Description in quantifiable terms: (attach additional sheets if necessary) This request to The City of Lake Elsinore is for $10,000 in Community Development Block Grant funding. These funds would assist CASA to recruit and train five new community volunteers who would enable our organization to serve up to 15 additional children residing in zip codes 92530 and 92532. There are currently 69 abused, neglected and /or abandoned children are listed with the Department of Public and Social Services in Lake Elsinore. Due to extremely limited resources, CASA presently serves just one child in the city. We urgently need to serve more. CASA Volunteers complete a 35 -hour training program and upon successful completion of the program, are sworn as officers of the Juvenile Court. Children who do not have a CASA volunteer are at risk of "failing through the cracks" because of the overburdened child welfare and judicial systems.. Social workers average approximately 40 or more cases. They must contact each child, the child's caregiver, the child's biological parents and /or extended relatives, school teachers and counselors, psychological counselors, physicians and must provide and supervise visits between the child and his/her parent(s) and /or siblings in each of their cases. Theirs is an overwhelming job. A CASA volunteer is assigned to only 1 or 2 ..r►' cases. The volunteer conducts a parallel but independent inquiry into the circumstances of the child's case, also interviewing each of the above contacts in a thorough fashion. 2. What are the goals and objectives of the project? The main goals for CASA for Riverside County Inc.'s CDBG request to The City of Lake Elsinore are to increase CASA Volunteers, which will ultimately increase the number of abused, neglected and abandoned children who can be assigned a CASA Volunteer and to have these new Volunteers supervised by a professional staff. The speck goals and objectives will be: 1. To increase the number of community volunteers who are screened, recruited, successfully complete New Volunteer Training and are sworn in as "officers of the court", and H. To assign each new volunteer to a City of Lake Elsinore court dependent child who has been abused, neglected or abandoned and ultimately increase the total number of children served in the Lake Elsinore zip code areas. III. To help make these children and youth responsible citizens of Temecula rather than financial drains on the community. CASA for Riverside County, Inc. will undertake the following activities in The City of Lake Elsinore in order to accomplish the above goals: • Develop a list of community agencies and service organizations to contact for 2 AGENDA ITEM No. 7J PAC -- OF speaking engagements with the goal of recruitment of new Volunteers and education regarding child abuse, • Recruit, screen and train five new community volunteers between July 1, 2006 and June 30, 2007, • Offer New Volunteer Training classes between July 1, 2006 and June 30, 2007, • Assign each new volunteer who successfully completes the screening and training to an abused or neglected child, a dependent of the Court, • Newly trained Volunteer advocates will accept supervision in their casework and will advocate for what is "in the best interests" of the child to whom they are assigned, • CASA staff will continue to meet with Judges, attorneys and Child Protective Services personnel in order to expedite the court and decision making processes for the child, • CASA staff will meet regularly with Child Protective Services personnel and service providers in the community to identify areas where there are "gaps" in services, • On -going data collection with investigation into ways to improve data collection, as well as ways to share data without breeching confidentiality, • Demonstrate cost effectiveness. and personal effectiveness for the child through accurate data collection, and • Submit reports to The City of Lake Elsinore in a timely fashion as required. The trained CASA Volunteer has 3 major goals, objectives and /or responsibilities: I. To conduct an independent investigation of the child's circumstances, serving as a fact- finder for the Juvenile Court Judge, making verbal and written recommendations (Court Report) about the child, 11. To monitor the delivery of services to the child, attend meetings concerning the child's needs (mental, emotional, physical, educational, etc.), and III. To continue as the child's advocate throughout the case, ensuring that services and resources are provided, that the child's needs are the focus of the court case. CASA Volunteers undergo a thorough training course conducted by the local CASA program. Volunteers learn about courtroom procedure from the principals in the system — from judges, lawyers, social workers, court personnel, and others. CASA Volunteers also learn effective advocacy techniques to work with children, and are educated about speck topics ranging from seminars on child sexual abuse to discussions on early childhood development and adolescent behavior. A Court Appointed Special Advocate (CASA) is requested by a judge to represent the best interests of a child in Court. Children helped by CASA Volunteers include those for whom home placement (reunification) is being considered in Juvenile Court. Sometimes reunification is not safe or possible. Most of the children are victims of abuse, neglect or abandonment. A CASA Volunteer usually spends about 10 hours doing research and conducting interviews prior to the first court appearance. More complicated cases take longer. Once initiated into the system, volunteers work about 10 -15 hours a month. A CASA Volunteer provides a judge with a carefully researched background of the child to help the Court make a sound decision about that child's future. Each case is as unique as the child involved. The CASA Volunteer recommends if it is in a child's best interest to stay with his or her parents or guardians, be placed in foster care, or be a candidate for permanent adoption. The CASA Volunteer follows through on the case until it is permanently resolved. Therefore CASA Volunteers are prepared to handle the following areas: 1) To serve as a fact - finder for the judge by thoroughly researching the background of each assigned case; 2) To speak for the child in the courtroom, representing the child's best interests; 3) To continue to act as an advocate for the child during the life of the case, ensuring that an appropriate permanency plan is completed. 3 ACENDA► ITEM NO. �J pAcc qI OF ? Iq- CASA is based on children's rights and this concept is based on the commitment that every child has the right to a safe, permanent home. In court jurisdictions that have adopted the program, the Juvenile Court judge has the opportunity to turn to a specially trained pool of CASA Volunteers when a case involving a child is received. The judge requests a Volunteer is appointed to the child's case. The Volunteer then becomes of _official part of the judicial proceedings, working alongside attorneys and social workers as an officer of the court. A CASA Volunteer prepares a recommendation by conferring with the child, parents, family members, social workers, school officials, health providers and others who are knowledgeable about the child's history. The CASA Volunteer also examines all records pertaining to the child -- school, medical and caseworker reports, and other documents. The Volunteer talks with the child, parents and family members, neighbors, school officials, doctors and others involved in the child's background who might have facts about the case. S/he then submits a formal report to the court recommending placement: should the child stay with his or her parents ?; be placed in foster care ?; or be a candidate for permanent adoption? State governments employ social workers. They sometimes work on as many as 45 cases at a time and are frequently unable to conduct a comprehensive investigation for each child. The CASA Volunteer has more time and a smaller caseload (an average of 1 -2 cases at a time). The CASA Volunteer does not replace a social worker on a case; s /he is an independent appointee of the court. The CASA Volunteer can thoroughly examine a child's case, has knowledge of community resources, and can make a recommendation to the court independent of state agency restrictions. While important to note the CASA Volunteer does not provide legal representation, that is the role of the attorney, the CASA Volunteer does provide crucial background information that assists attorneys in presenting their cases. These Volunteers recommend to the court what the child's wishes are, and then exercise their own independent judgment to determine whether those wishes are in the best interest of the child. Social workers, lawyers, and judges support CASA because our volunteers can save a lot of precious time, effort and money for the city. This why Juvenile Court fudges implement the CASA program in their courtrooms and request Volunteers. The American Bar Association, the National Bar Association, the National Council of Juvenile and Family Court Judges, and the Office of Juvenile Justice and Delinquency Prevention of the U.S. Department of Justice have endorsed CASA. By handling only one, two or sometimes up to three cases at a time, the CASA Volunteer has the time to explore thoroughly the history of each assigned case. CASA Volunteers also offer children trust, consistency and advocacy during complex legal proceedings. They explain to the child the events that are happening, the reasons they all are in court, and the roles the judge, lawyers, and social workers play. CASA Volunteers also encourage the child to express his or her own opinion and hopes, while remaining objective observers. The success of a CASA program depends upon the quality of CASA's professional staff supervision and work. They assist with CASA's program activities, which include the following: • Recruitment, Screening, and Initial Training of New Volunteers, • On -Going Training throughout the year (12 hours of annual training is required.), • Assignment of cases to an appropriate Volunteer, development of a case plan and regular contact with the Volunteer, • Accompaniment on initial home visits/interviews with new Volunteers or as needed for future visits, • Assistance with the writing of court reports and preparation for court appearances and testifying at court hearings. 0 Gathering of statistical information regarding the child's case and the volunteer's casework S"O, (impact and hours), • Assistance in identifying community resources and services for children/families, and 4 y� acEraDA ITEM N®. PACEA • Notifying CASA, DPSS and the Court when appropriate if services are not available to children/families. Volunteer supervision maintains the success for a CASA program. CASA for Riverside Co. requires that the program staff maintain regular contact with each Volunteer assigned to a child in the dependency court. They work with Volunteers to develop a case plan, determine individuals to be interviewed, and assist Volunteers with the production of their court reports. Volunteers are required to interview everyone with significant knowledge about the child (parents, extended family, social workers, teachers, counselors /therapists, neighbors, physicians, the child's attorney, etc.), but most importantly, the Volunteer spends time with the child and get to understand the child. A CASA Volunteer maintains consistent contact with the child, monitors the services provided and the child's progress. The Volunteer then submits a written report to the court detailing their findings and attends each court hearing. The Volunteer is always prepared to answer questions or testify, as the judge desires. The Volunteer keeps everyone involved with the case focused on what is "in the best interests" of the child, with the goal of moving the child through the court/child welfare systems in a time frame sensitive to each child's needs. A draft of the Volunteer's Juvenile Court Report is submitted to the Case Manager for suggestions, need for further contacts or revisions in the report. The Caseworker, Site Manager or Executive Director reviews the report. Both the child's Volunteer and the Caseworker, Site Manager or Executive Director sign the final report prepared for submission to the Court. Two weeks prior to the scheduled court hearing, the original Court report is filed with the Court for the judge and copies are mailed to every participant, including attorneys, social workers and others on a "need to know" basis. This includes the parents' attorney(s). A copy of the Court Report is kept in the Volunteer's file and at the local CASA office. In all of the dependency Courts in Riverside County, the Volunteer advocates (CASAs) are sworn officers of the Juvenile Court and serve as independent and objective fact - finders for the Juvenile Court Judge. The National CASA Association defines this type of CASA program as a "Friend of the Court" model. CASA maintains a strong relationship with the courts and the volunteers are well respected. The following five judges hear dependency cases and appoint CASA Volunteers: The Honorable Jean Leonard (Juvenile Court Presiding Judge), The Honorable Becky Dugan, The Honorable H. Morgan Dougherty, The Honorable Robert Nagby, The Honorable Martin Swanson and The Honorable Robert Padia. Additionally, Judge James T. Warren serves as an advisory member to the Board of Directors. Each of the these judges supports CASA by speaking publicly about the value of public/private partnership as a means to support high -risk families and children as well as the cost- effectiveness of CASA by helping to move children through the Courts more quickly. They provide in -kind office space, and in -kind communication services and supplies. They support CASA's commitment to serve dependent children who are abused /neglected /abandoned without expansion to delinquency cases, in keeping with Rule 1424, Section f (1), "... if volunteer resources are limited, preference in assignment should be given to children in dependency proceedings." CASA's positive relationship with the Courts is maintained through the professional staff has on going communications with the Court. Additionally, monthly meetings are often held and include the judiciary, CASA staff, court administrative staff, a representative from the District Attorney and Public Defender's offices, the County Counsel and the Juvenile Defense Panel. Court related subjects such as rules, procedures, and current issues such as continuances are discussed. Through this forum, the Court and other participants are updated on the local CASA program and are able to provide input and feedback. With the CASA offices located in or near the Court buildings, communication between judges and CASA staff is facilitated and allows for transfer of 5 AGENDA ITEM NO. qt>- the latest information regarding new volunteer training, continuing education, availability of volunteers, speck areas of need and progress. These are just some of the ways that CASA impacts the court/child welfare systems of the county, helping to identify problems and assuring that solutions are found, all is for the best interests of the children served. Judicial response to the CASA Volunteer's report and the role they play has been very positive. Judges read the Volunteers' Court Reports, ask questions and listen to recommendations. There have been times when CASA Volunteers have been the only representatives for the children who have appeared for a court hearing and the judge has been grateful for their written reports. An attorney represents each dependent child in Riverside County, whether s /he has a CASA volunteer assigned or not. These attorneys come from the Juvenile Defense Panel. Often these attorneys have asked the Courts to find a way to appoint more CASA Volunteers to their active cases. The attorneys appear at the court hearing and review the materials presented. CASA also maintains a good working relationship with the child welfare division of the Riverside County Department of Public Social Services (DPSS). As described above, representatives of DPSS and CASA are a part of the monthly meetings with the Court and facilitate inter - agency coordination. CASA Volunteers interact daily with social workers from DPSS to assure that the best services are being provided for each child and that appropriate referrals are made to many Riverside County agencies, including: Children's Advocacy Council of Riverside; Loma Linda Counseling Center, inland Psychotherapy Group, Betty Ford Center, Barbara Sinatra Children's Center; Shelter From the Storm, the Foster Parents Associations throughout the county, Sheriffs Department, Victim Witness Program, and local law enforcement agencies, Alternatives to Domestic Violence, and Safe House. CASA also works closely with private physicians and practitioners who provide services to the dependent children in the county. 3. Discuss this .project's benefit to low- and moderate- income residents to be served by this project: CASA clientele are presumed to be principally low- and moderate- income persons by the Federal Housing and Urban Development (HUD) agency's definition. The following groups are presumed by HUD to meet this criterion: Abused children, battered spouses, elderly persons, handicapped persons, homeless persons, illiterate persons and migrant farm workers. The children served by CASA are within the HUD criterion, as they are abandoned, abused, or neglected, in the care of foster or group homes and in the juvenile court dependency system. The CASA Volunteer continues until the case is permanently resolved. One of the primary benefits of the CASA program is that, unlike other court principals who often rotate cases, the CASA Volunteer is a consistent figure in the proceedings, and provides continuity for a child. Therefore, CASA programs have been very effective. Research suggests that children who have been assigned CASA Volunteers tend to spend less time in court and less time within the foster care system than those who do not have CASA representation. Judges have observed that CASA children also have better chances of finding permanent homes than non -CASA children. If the Court leaves the child in temporary care, the CASA Volunteer provides continuity by staying on the case until it is permanently resolved. 4. If this is a public service activity: (A) Is this a NEW service provided by your agency? Yes No X If service is not new, will the proposed activity substantially increase the existing level of service? Explain how the service will be substantially increased (attach additional sheets if necessary.) 114� By specifically recruiting and training an additional five new CASA volunteers to serve The City of 6 AGENIA ITEM NO. yY PACE 1 --GF— Lake Elsinore, it is anticipated that up to 15 more children can be served during the period of July 1, 2006 through June 30, 2007. Every dollar granted to CASA for Riverside County, Inc. towards assisting dependent children will result in significantly fewer dollars that The City of Lake Elsinore will have to pay out in remedial education, future welfare benefits, support for the homeless and the expenses incurred through possible sociably unacceptable behaviors or future criminal activities. 5. What methods will be used for community involvement to assure that all who might benefit from the project are provided an opportunity to participate? CASA makes every attempt to fill judge's requests but that is dependent upon the , number of volunteers available, hence, the need to increase volunteers in The City of Lake Elsinore. CASA Volunteers are members of the immediate communities they serve. They reap the rewards of helping children and assisting them to reach their potential in school and life in general. Children who have CASA Volunteers are often healthier, and have a -greater opportunity to responsible citizens who understand the importance of giving back to their community. With proper mentoring they become community taxpayers as adults and not a burden on the city. CASA is a singly - focused agency dealing only with our community's most vulnerable population, children who have been so severely abused or neglected that they cannot, for safety reasons, remain in their own home. To assure that all who might benefit from CASA's services, this CASA needs to train and involve increased numbers of community volunteers. The National CASA Association and California CASA standards and requirements (1 program staff to every 35 volunteers) necessitate the hiring of additional Case Managers and support staff with larger numbers of Volunteers. CASA is an excellent example of how the private and public sectors can work together to provide much needed services for the future of Lake Elsinore and your children. There are several methods used for community involvement assuring benefits to the maximum number of children. As CASA applies for funding from individual communities, staff and /or Board members appear before a City Council or committee that has funding oversight. Additionally, CASA meets regularly with the "community" of public and private agencies that serve the target population, children between birth and 18 who have been abused, neglected or abandoned. Representatives of these organizations work to determine how to better provide services to these children and their parent(s), identify gaps in services countywide or areas of the county where there are not adequate services, and evaluate ways to move children through the court and child welfare systems more effectively. CASA meets often with both the Juvenile Court Judges to make the final determination of which children are in greatest need of a CASA Volunteer and with supervisory staff from Riverside County Child Protective Services to determine ways that CASA can assist. 6. What are the projects expected results? CASA was created to assure that the systems designed to protect the child would not "re-abuse" the child by virtue of "red tape ", the court maze and support systems or a lack of services provided in a timely manner. In order to document that CASA is accomplishing the above, the following data is routinely collected by CASA staff and analyzed separately by site: 7 AGENDA ITEM N0. y5 (1) CASES: number of and demographics regarding the children served, types of abuse, source of referral, stage of court proceedings when CASA is appointed, type of placement at time of match, waiting list where this information is available, and (2) VOLUNTEERS: number of active Volunteers, number of Volunteers trained, demographics of Volunteers, employment status, education level, languages spoken, how Volunteers learned of CASA, hours of new training received throughout service, length of Volunteer service, number of children and number of volunteer hours served. In addition, CASA maintains records on the following: Calendar of Court hearings Volunteer travel and contact logs Volunteer Reports to the court Volunteer correspondence regarding cases Records of supervisory contacts Confidential volunteer personnel files 7. How will you measure and evaluate how the project meets its goals and objectives (measures should be both qualitative and quantitative ?) The date a case opens, the dates of significant Court hearings and the date of closure with the type of result (i.e. return home, placement with relative, adoption following termination of parental rights, etc.) may be tracked. Through regular contact with the child and service providers, the following areas may also be monitored when information is made available and is reflective of the child's personal progress: • Schoolattendance, • Progress in school (by means of interviews with teachers, counselors, test scores, and grades, homework, disciplinary measures, tutoring), • Attendance or involvement in after school activities /programs, • Responsibilities /chores given by foster parent, house parent or guardian, • Attendance at therapy or counseling sessions, • Progress in therapy per counselor, • Descriptive, specific input from Child Protective Services caseworker, • Monitoring of employment, if applicable, and • Observations noted during personal attendance at family or sibling visitations Information will be collected on CAUCASA's CASA Tracker Program. 8. What evidence is there of long -term commitment to the proposal? Describe how you plan to continue the work (project) after the grant ends? CASA for Riverside County, Inc. was established in 1990 at the request of the Juvenile Courts of Riverside County. CASA is the only private nonprofit agency that receives Court appointments to abused and neglected children who are dependents of the courts. The volunteers are Sworn Officers of the Juvenile Court. The program has operated successfully and continuously since 1990. Because the county's number of dependent children continues to grow, the need for CASA continues to grow. The Judges indicate that they would appoint CASAs in larger numbers of cases if there were enough volunteers available. In response, CASA is always looking for additional funding sources in order to increase the staff, which will then be able to be leveraged to supervise larger numbers of community volunteers who will ultimately be able to advocate for larger numbers of children. The Executive Director of CASA and the Board of Directors continue to research new funding 8 AGENDA ITEM NO L15- sources and applv for funds available to this non - profit agency. In 2001, CASA developed an Auxiliary for the purpose of developing and coordinating fund- raising events and raising public awareness regarding the problem of child abuse in Riverside County and the need for funding the CASA program. This agency's goal is to expand the funding base by receiving funding from numerous different sources. CASA's auxiliary is very active across the county. They are receiving widespread community support and are planning some exciting events for the year 2006 - 2007. 9. Attach maps of proposed project(s) location and service area. Please see attached map. 9 AGENDA ITEM NO. �J PACE _OF - ' ` V. PROJECT BENEFIT: To be eligible for CDBG funding, a project must qualify within one of the three following categories. Indicate how the activity in this application meets one of the following categories of benefits. Indicate the source of the information provided. (Provide information for the one category your application applies to.) CATEGORY 1. Benefit to low- moderate income persons (must be documented). Please identify how you have documented the persons served are low- moderate income persons by providing information in either A, B, or C. A. Area Benefit: The project serves persons in the identified block groups in Census Tract, which are 51 % or more low /moderate income. 1990 Census Data: Census Tract and block group numbers: CT CT CT BG CT RC CT CT # Total population in Census Tract(s) / block group(s) IN IN BG # Total low- moderate population in Census Tract(s) / block group(s) B. Limited Clientele: The project serves clientele that have documented their income. Identify the procedure you currently have in place to document that the clientele you serve are low - moderate income persons. C. Clientele presumed _to be principally low- and moderate- income persons. The following groups are presumed by HUD to meet this criterion: Abused children, battered spouses, elderly persons, handicapped persons, homeless persons, illiterate persons and migrant farm workers. Describe your clientele to be served by the activity. CASA clientele are presumed to be principally low- and moderate- income persons by the Federal Housing and Urban Development (HUD) agency's definition. The following groups are presumed by HUD to meet this criterion: Abused children, battered spouses, elderly persons, handicapped persons, homeless persons, illiterate persons and migrant farm workers. The children served by CASA are within the HUD criterion, as they are abandoned, abused, or neglected, in the care of foster or group homes and in the Juvenile Court dependency system. CATEGORY 2. Prevention or Elimination of Slums and Blight: Is the project located in a Redevelopment Area? Yes X No. If yes, attach map of area. Additionally, provide the Redevelopment Project Area (excerpts accepted) which documents the AGENDA ITEM Ito. y. 10 existence of slum/blight. Also document the speck redevelopment objectives pertaining to the proposed project. *CATEGORY 3. Documented Health or Safety Condition of Particular Urgency: Condition shall have been of recent (18 months) origin. Provide documentation, which demonstrates the health or safety condition, has existed only within the previous 18 months. *CASA for Riverside County, Inc., serves children who have been abused, neglected or abandoned as defined in California Rule of Court #1424. These children are dependents of the Riverside County Juvenile Court because the abuse they have suffered is so severe that thy must be removed from their home in order to prevent further injury and ensure their personal safety. By HUD criterion, abused and neglected children are "... presumed to be principally low and moderate - income persons." VI. FINANCIAL INFORMATION: A. Complete the following annual budget to begin on July 1, of this year. If these line items are not applicable to your activity, please attach an appropriate budget. Provide total Budget information and distribution of CDBG funds in the proposed budget. TOTAL BUDGET CDBG FUNDS BUDGET SUMMARY (Include CDBG Funds) REQUESTED I. Personnel A. Salaries & Wages $ 190,000 $ 5,000 B. Fringe Benefits $_28..500 $ 900 C. Consultants & Contract $ 3,000 $ Services $ $ SUB -TOTAL $ 221,500 $ II. Non - Personnel A. Space Costs $__6.732 $ B. Rental, Lease or Purchase of Equipment $ 5,000 $__L0_0 C. Consumable Supplies $ 15,000 $__§_0_0 D. Travel $ 15,000 $ 600 E. Telephone $ 360 $ F. Other Costs $ 6,000 $ 2.500 SUB -TOTAL $ 48,092 $. 111. Arch itectural/Engineering Design $ $ IV. Acquisition of Real Property $ $ V. Construction /Rehabilitation $ $ TOTAL: $_269,592 $ 10,000 11 AGENDA ITEM N0. qY r }ar ��--' --L B. Identify other funding sources; identify commitments or applications for funds from other sources to implement this activity. Attach evidence of commitment Funding Source Amount Requested Date Available Type of Commitmer •..rr Major Gifts / Grants Received for 2005 -06 1%./ *Third and final installment of a $78,000 grant $3,000 was awarded for the implementation of the CASA Strategic Plan. Major Grant Proposals Submitted /Pending Shapiro Family Charitable Foundation ($45,000) Desert Classic Charities (Bob Hope golf tournament, $35,000) The Fieldstone Foundation ($45,000) Carrie Estelle Doheny Foundation ($20,000) City of Indio Special Funding Program ($54,915) Weingart Foundation ($100,000) Employee Community Fund of the Boeing Co. ($60,515) None of the above has previously provided funding to CASA. C. Provide a summary by line item of your Agency's previous years income and expense statement. Please See Attached Audit for FYE June 30, 2005 D. If this project benefits citizens of more than one community or local jurisdictions and /or municipalities, have requests been made to those other jurisdictions: ..r Yes X If yes, identify sources and indicate outcome No If no, please explain 12 ,AGENDA ITEM 1+40. Li`S PACE_L OF t Cash, Organization Donations or In-Kind Funds Funds Total Grants Value Received Pending Value California Wellness $ 25,000 $ 25,000 $ 25,000* Foundation BetterWorld 15,000 15,000 15,000 Foundation California 50,000 50,000 50,000 Endowment Judicial Council 56,400 56,400 56,400 United Way 32,000 16,333 15,667 32,000 Regional Access 16,100 4,025 12,075 16,100 Project City of Indian Wells 10,000 10,000 $10,000 TOTAL REVENUE $204,500 $176,758 $27,742 $204,500 1%./ *Third and final installment of a $78,000 grant $3,000 was awarded for the implementation of the CASA Strategic Plan. Major Grant Proposals Submitted /Pending Shapiro Family Charitable Foundation ($45,000) Desert Classic Charities (Bob Hope golf tournament, $35,000) The Fieldstone Foundation ($45,000) Carrie Estelle Doheny Foundation ($20,000) City of Indio Special Funding Program ($54,915) Weingart Foundation ($100,000) Employee Community Fund of the Boeing Co. ($60,515) None of the above has previously provided funding to CASA. C. Provide a summary by line item of your Agency's previous years income and expense statement. Please See Attached Audit for FYE June 30, 2005 D. If this project benefits citizens of more than one community or local jurisdictions and /or municipalities, have requests been made to those other jurisdictions: ..r Yes X If yes, identify sources and indicate outcome No If no, please explain 12 ,AGENDA ITEM 1+40. Li`S PACE_L OF t E. Was this project previously funded with CDBG funds? If yes, when? Is this activity a continuation of a previously funded (CDBG) project? (explain) Yes. The County of Riverside contributed $10,000 for county wide use in FY 2005 -2006. VII. MANAGEMENT INFORMATION: (PROVIDE THIS INFORMATION BY ATTACHMENT.) A. Describe the organization responsible for managing and operating the project including: previous similar experience, list source, and commitment of funds for operation and maintenance. Identify project manager, or person in charge of the project's day - today operations. Please see attachment. B. What is the role of your organization in the community? CASA for Riverside County is the only non - profit agency that has sworn in Volunteer officers of the Juvenile Court for children who have been abused, neglected or abandoned and who, as child victims, have become dependents of the Juvenile Courts. CASA maintains a good working relationship with the child welfare division of the Riverside County Department of Public Social Services (DPSS). CASA Volunteers interact daily with social workers from DPSS to assure that the best services are being provided for each child. A DPSS regional manager serves on CASA's Board of Directors. CASA also works with DPSS to assure services and referrals to numerous Riverside County agencies. C. Timetable for Project Implementation. Indicate primary project objectives: (You may attach a time chart, if you wish). OBJECTIVE START DATE COMPLETION DATE Please see attached: Grant Timetable 2006 — 2007 The City of Lake Elsinore - CDBG D. If you have never received CDBG funding from Riverside County, provide the following regarding any previous experience with other Federally funded programs. Source Activ Year Funds Received Funds Expended Vlll. CITIZEN PARTICIPATION: Every project proposal MUST contain evidence of citizen participation and support for the proposal. That evidence must include documentation of at least one community meeting this year at which the specific project was discussed and opportunity given for citizen input. Describe the methods used to obtain citizen involvement and attach appropriate documentation. CASA for Riverside County, Inc. is a "Volunteer driven" organization. Without the commitment of the trained community Volunteer, CASA would not be the cost - effective 13 ACENDA ITEM NO. LIJ pAcrt 7 OF agency that it is, but more importantly, it would not even exist. CASA currently has approximately 200 "Volunteer staff' effectively advocating for Riverside County's abused, neglected and abandoned children. They are supervised and supported by a very small staff of 8 dedicated employees. The CASA Auxiliary has had many meetings this year to plan fund raising events. The S"00# Auxiliary is made up of community members who had a fundraiser in May, First Annual Golf Tournament, and in October a fundraiser that attracted 300+ attendees. Other community members give of their time to participate in fund raising events by providing model participation gratis, billboards at incredibly reduced costs as well as clothes for fashion shows. Additionally, citizens familiar with the issues surrounding child abuse, neglect and abandonment (support agencies and service providers) meet with CASA professionals and Volunteers on a regular basis and give input regarding CASA's advocacy for dependent children, better means of communication and information sharing and needed services /gaps in services. Other crucial citizens who are actively involved in CASA's work are the Juvenile Judges who regularly give input as to the information they need to receive from CASA, training guidelines and improvements in court reports and /or testimony. CASA has implemented an aggressive but doable Strategic Plan this past summer. The CASA Board and Auxiliary members work directly with the Executive Director to aid in various assignments. Please see the attached sampling of media articles about CASA. IX. PLANNING: Identify the most applicable adopted plans or strategies, which the proposed project, will help implement: CASA for Riverside County, Inc. provides services that will be of "benefit to low- moderate income persons" as defined by HUD's statement that "The following groups are presumed by HUD to meet this criterion: CASA for Riverside County, Inc. is a single- focused agency that provides advocacy for children, aged birth to 18 from throughout Riverside County and from all ethnicities, who have been abused, neglected or abandoned and who, through no fault of their own, become a part of the juvenile court and child welfare systems. The plan is to move these children through the court/child welfare systems as quickly as possible into a safe, loving, nurturing home which will remove them from the community's and HUD's status as an abused child. This will serve both the child's best interests and the best interests of the community by improving the child's physical, emotional and mental health and by breaking the cycle of child abuse. Please see Mission Statement that follows. ..r 14 ACENDA ITEM NO. L/5- Ao CASA (Court Appointed Special Advocates) for Riverside County, Inc. - Mission Statement Our mission is to speak for the best interests of abused, neglected and abandoned children in the courts of Riverside County. We promote and support quality volunteer representation for each child to secure a safe, permanent and nurturing home. We are diligent advocates for the services needed to help each child become a healthy and productive adult, able to break the chain of abuse, neglect or abandonment. 15 AGENDA ITEM NO. `7S PACE----OF APPLICATION CERTIFICATION Undersigned hereby certifies that: 1. The information contained in the project application is complete and accurate. 2. The applicant shall comply with all Federal and County policies and requirements affecting the CDBG program. 3. The federal assistance made available through the CDBG program funding is not being utilized to substantially reduce the prior levels of local financial support for community development activities. 4. The applicant shall maintain and operate the facility for its approved use throughout its economic life. 5. Sufficient funds are available to complete the project as described, if CDBG funds are approved. 6. 1 have obtained authorization to submit this application for CDBG funding. (ATTACH DOCUMENTATION) Type\print name and title of Authorized Representative Signature of Authorized Repri Date December 6. 2005 The following are attached to this application: X _ 1) Map of area served X 11) Organizational history X A) Current Board of Directors X B) Articles of Incorporation X _ III) Management information X IV) Income and Expense Statement X V) Evidence of Commitment Documentation X VI) City of Temecula 2006 -07 CDBG Grant Timetable X VII) Riverside County DPSS Count of Children in Placement _ X Vill) Authorization to Submit Application for CDBG Funding X _ IX) Media Articles re: Citizen Participation AGENDA ITEM NO. 16 PAOEJ„L_OF ` 1 =i ATTACHMENT is MAP OF AREA SERVED AGENDA ITEM NO �J Sao I I of kh Tr Ay S e[ i d pf' 3-xa4 J ATTACHMENT 11: ORGANIZATIONAL HISTORY ACENDA ITEM NO. ys PACE 13 OF History of CASA In 1976, Superior Court Judge David Soukup of Seattle, WA, saw a recurring problem in his courtroom: "In criminal and crul cases, even tboHgb thus were always miry differeni pointy of view, you walked out of the mmrthomse at the end of the day andyom raid, 'I'm done my hest; I can kve with this decision,' be explains. "But whenyom'n involmd with a c&U andyom're trying to decide what to do to faahtate that child's growth into a mature and happy admlt,yom don'tfeel hkeyox have smffurent information to ah6wyom to make the right decision. You can't walk away and leave them at the comrthomse at 4 o'clock. Yom wonder, 'Do I really know everything I should? Have 1 Wally been told all of the different things? Ir this raly i ght? "' To ensure he was getting all the facts and the long -term welfare of each child was being represented, the Seattle judge came up with an idea that would change America's judicial procedure and the lives of over a million children. He obtained funding to recruit and train community volunteers to step into courtrooms on behalf of the children: Court Appointed Special Advocate (CASA) volunteers. This unique concept was implemented in Seattle as a pilot program in January 1977. During that first year, the program provided 110 trained CASA volunteers for 498 children in 376 dependency cases. In 1978 the National Center of State Courts selected the Seattle program as the "best national example of citizen participation in the juvenile justice system." This recognition, along with a grant from the Edna McConnell Clark Foundation of New York City (one of CASA's earliest and strongest supporters), resulted in the replication of the Seattle CASA program in courts across the country. As CASA projects developed, each new local program director made an on -site visit to the original Seattle host program for observation and training. By 1982 it was dear that a national association was needed to direct CASA's emerging national presence. The National Court Appointed Special Advocate Association was formed that year. By 1984 the National CASA Association received financial support from several significant sources: the National Council of)uvenile and Family Court judges, under the direction of the U.S. Department of Justice, Office of Juvenile Justice and Delinquency Prevention; the U.S. Department of Health and Human Services; and the Edna McConnell Clark Foundation. National CASA also receives support from the Kappa Alpha Theta Foundation. This international women's fraternity selected CASA as its philanthropy and has provided funds for a variety of projects, including start -up grants and a public awareness video. The Association opened its national headquarters office in Seattle, Washington, in the summer of 1984, and launched a membership and fundraising drive. On April 22, 1985, President Ronald Reagan presented the National CASA Association with the President's Volunteer Action Award for "outstanding volunteer contribution, demonstrating accomplishment through voluntary action. "In August of 1989, the American Bar Association, the country's largest professional organization of attorneys, officially endorsed the use of CASA volunteers to work with attorneys to speak for abused and neglected children in court. In July of 1990, the National Council of Juvenile and Family Court Judges named CASA "Outstanding Volunteer Program" in America's juvenile and family courts. Also during that year the U.S. Congress authorized the expansion of CASA with the passage of the "Victims of Child Abuse Act of 1990" (P.L 101 -647), so that a "court- appointed special advocate shall be available to every victim of child abuse or neglect in the United States that needs such an advocate." The U.S. Advisory Board on Child Abuse and Neglect included utilization of CASA and GAL volunteers among critical first steps recommended to bring the "national emergency" of child abuse and neglect in America today under control. In July of 1991, the Office of Juvenile Justice and Delinquency Prevention, U.S. Department of]ustice, named CASA an "Exemplary National Program in Juvenile Delinquency Prevention." In December of 1992, David Soukup, founder of CASA, was recognized with an award from the Caring Institute of Washington, D.C. Also in 1992, Congress initiated funding of a grants program to expand CASA representation of abused and neglected children. Today the National CASA Association represents 930 CASA programs across the country, including Washington, DC and the U.S. Virgin Islands. National CASA provides support for starting programs, technical assistance, training, and fundraising, media, and public awareness services. I?sxlawd ,/0 AGENDA ITEM PLO. Y5- PACE, OF • Nof /" 1'` ATTACHMENT IIA: CURRENT BOARD OF DIRECTORS ACCNDA ITEM NO. qu F,;CE OF t ' CASA COVH AOPp "teA S —Wl AJ -cvfes FOR CHILDREN CASA FOR RIVFaSf DE COUNTY, INC. BOARD OF DIRECTORS 2006-2007 Carla Lidner, D.D.S., Board President Assistant Professor of Dentistry, Loma Linda University Timothy Streeter, Board Vice President Vice President, Commercial Banking Services, City National Bank, Ontario Cheryl Steinway, Board Treasurer 2nd Vice President, Personal Banking, Northern Trust, Rancho Mirage Johnnie M. Manning, Board Secretary Retired Attorney, Moreno Vary Mary E. Belardo Former Tribal Executive Director, Torres- Martinez Band of Desert Cahuilla Indians, Thermal Kendall Berkey Deputy City Attorney, Cathedral City / Rancho Mirage Rosanna Contreras Field Representative, Office of Assemblywoman Bonnie Garcia, Cathedral City Ray Fuller Professional Musician, owner of A Ray Artists Music, Rancho Santa Fe Russell Kitahara Business Owner and Farm Manager, Thermal Jan Lane Manager of Database Administration, The McCallum Theatre, Palm Desert Steve Sanchez Retail Supervisor, New Business Development, Time Warner Cable, Palm Desert William Stellar, M.D. Cardiologist and Intemist, Rancho Mirage Cardiology & Medical Specialists C'n ,AGENDA ITEM 140. L15- - PACS-4.0F_ ATTACHMENT 1113: ARTICLES OF INCORPORATION AGENDA ITEM NO. '-1S FACF F• i� t7 u• F" S E D ARTICLES OF INCORPORATION ` E D to tho cr co c! me Socre!Or1! of State 0: trx Style 01 Ga.dor4a _ CASA FOR RIVERSIDE COUNTY, INC: APR 12 1990 A California Nonprofit Corporation Mp,ECN f Ot {G EU, Secrete: � cf State I . NAME The name of this corporation is CASA FOR RIVERSIDE COUNTY, INC. II. PURPOSE This corporation is a nonprofit public benefit corpora - on and is not organized for.the private gain of any person. It ti oration Law is organized under the Nonprofit Public Benefit Corp for charitable purposes. The specific, purpose of thus corporation is to. support . ruit t he development, growth and continuation of programs that rec urt appointed special advoca � and train volunteers to serve as cotes dependency proceedings for abused and neglected children in juvenile . III_ CHARITABLE NATURE OF CORPORATION This corporation is organized exclusively for charit- able literary or educational purposes within the meaning of ode. Notwithstanding Section 501(c)(3) of the Internal Revenue C' an other .provision of these articles, the corporation shall not,. except to an insubstantial degree, engage. in any activities or ex- cise an powers that are not in furtherance o'€ the purposes of er Y P other this corporation, and the corporation shall not carry on any P activities not permitted to be carried on (a) by a corporation ex- empt from federal income tax under Section 501(c)(3) of the internal AGENDA ITEM N4.�7y PACE �_OF a corporation, contributions to which are de. �^ Revenue Code, or (b) by , � Interhal_Revenue Co deductible under Section 170(c)(2) of the of this corporation art of the activit No substantial p ies shall consist of lobbying, propaganda; or. otherwise attempting to Provided in 501(h) of the as influence legislation except P oration shall not par internal Revenue Code of 1986, and this core ntervene Palgn (including publish- or of in any political cam candidate for ing or distributing statements) on behalf of any public office. IV. INITIAL AGENT FOR SERVICE OF PROCESS the State of California for the The name and address in initial agent for service of process is: Catherine Johnson 120A 4050 Main Street, 92501 Riverside, California IV. BYLAW PROVISIONS shall be chosen 'rectors. The manner in which directors 'es and Di duties and removed from office, their qualifications, powers, annex of f- ,ill:ing vacancies on the board, and tenure of office, the m shall be the mann er of calling and holding meetings of directors' stated in 'the bylaws. admit per sons to member - Members. The corporation may - nd conditions set'' forth in the bylaws. ship subject to the terms a DISSOLUTION • V. DEDICATION ANA .dedicated to the All corporate property is irrevocably i-. NL.. part of the net income purposes set forth in Article 11 abpVeure to the benefit of any of or assets of this corporation shall inu AGENDA iTUA NA. -2- PAC:. 4_._0F_*- its directors, officers or members or to the benefit of any private person. Upon the dissolution or . winding up of ,the corporation, its assets remaining after payment, or provision for payment, of all debts and liabilities of this corporation shall be distributed to a nonprofit fund, foundation or corporation which is organized and operated exclusively for charitable purposes and whic'h has establish- ed its tax exempt status under Section 501(c)(3) of the Internal Revenue Code. Dated: RPC—HA�ELD. MACOMBEK, Incorporator I hereby declare that I am the person who executed the foregoing Articles of Incorporation, as incorporator of this Cor- porati.on-, which exec-ut.io-n. is my act. and deed. �/Ju,l . `V l�li� MICHAEL WTr AFL D. MACOMBEK I :r'.. ,AGLjV,DArTL:MNQ. PACE larO OF 31V ' of the Stat: of California MAY 2 4 199' CERTIFICATE OF AMENDMENT OF ARTICLES OF INCORPORATION that Blt.t. AXES, Se of Slap _ • _ RALDINE�BOWDEN and MARY ANN WILCZAK- DOCZT_ certify. . GE respectively, Of. 7- T�^ey 4rE .the President a L Yth a Ca CASA OF THE COA l for nia Nonprofit Public - CHELLA VA r Benefit Corporation. • of Incorporation of this 2_ Article ONE °amended totreadsas follows" Corporation is Inc. of the Corporation for Riverside County, The na me oration is CA endment of Fo ticles 3. The foregoing am of Tncorporation has been duly approved by the Board of Directors. 4. The corporation has no nembers. • - enalty.of perjury under the laws of the We' further declare under p State of California that the matters set frth in this Certificate are true and correct and are of our own knowledge. - DATE:' , .1996 .-. ?� ! =t -• GERALDINE BOWDEN, PRESIDENT y r,�iN WILCZAK -D ZI, S RETARY ACENIDA ITEM NO. j A2F82773 , - PACE ATTACHMENT 111: MANAGEMENT INFORMATION AGENDA ITEM NO. yJ 1.00, A*_� ATTACHMENT MANAGEMENT INFORMATION Vii. MANAGEMENT INFORMATION: (PROVIDE,, -THIS INFORMATION BY ATTACHMENT) A. Describe the organization responsible for managing and operating the project including: previous similar experience, list source, and commitment of funds for operation and maintenance. Identify project manager, or person in charge of the project's day - to-day operations. CASA for Riverside County, Inc. operates in three separate offices, (Indio, Murrieta and Riverside), and is guided by a single oversight system. The organization has one Executive Director, one Board of Directors and one set of policies and procedures to manage, guide and govern CASA activities throughout the county. The Executive Director hires and supervises all staff and reports directly to the Board of Directors. The Board is made up of 12 members, each of whom makes a 3-year commitment with the ability to renew one time. The current Board includes 7 women and 5 men. Board members have a wide variety of skills needed to oversee a non- profit agency, including: legal and judicial experience, data management, IT /computer skills, education and special needs background, medical, small business and fundraising skills. The Board meets monthly in mid county. Board members serve on committees that meet between board meetings, assisting with fundraising and budgeting. Board training and development includes: evaluation of the size of the board, reviewing compliance with national and state standards; updating policies and bylaws and implementing strategic planning for future growth. Board training is held annually regarding the roles and responsibilities of board members and educational information regarding child abuse and neglect. Board members are also encouraged to take part in community trainings offered locally regarding non - profit boards, fundraising, or child abuse /mental health issues. The Executive Director and the Board implemented a Strategic Plan in September 2003 and reviewed it in 2004. Volunteers, staff, board members and the executive director participated in forming and reviewing this plan. The volunteer Board of Directors for CASA for Riverside County, Inc. is responsible for setting policies for the agency. The executive director and court develop recommendations on program policy issues and advise the Board of such. The executive director recommends management issues and policies. Management decisions regarding the day - to-day operation of the agency are the responsibility of the executive director, often in consultation with the program staff. If management decisions may affect services to children the executive director consults with the juvenile court presiding judge. CASA's previous similar experience includes successful fundraising and project management thanks to the support of a variety of grant- making organizations. For example, CASA has received Judicial Council grants every year. We also enjoy the ongoing support of, among others, the California Wellness Foundation, the BetterWorld Foundation and United Way of the Desert. The Executive Director, Marilynn Yeates, and the local Case Manager will be the Project *nager. AGEUDA, rrLm lug. `7s car* I a 7, n ;: I q ATTACHMENT IV: INCOME AND EXPENSE STATEMENT I AGENDA I' U14 No. �J PACE ICU- INDEX AUDITORS' REPORT STATEMENT OF FINANCIAL POSITION STATEMENT OF ACTIVITIES STATEMENT OF CASH FLOWS STATEMENT OF FUNCTIONAL EXPENSES STATEMENT OF RESTRICTED GRANTS STATEMENT OF EXPENDITURES NOTES TO FINANCIAL STATEMENTS �o�ert � Jedfa AN ACCOUNTANCY CORPORATION PAGE 1 2 3 4 5 6 7 8 -10 ACENDA I'VEM 144. PAS Ja4 QF 2 f Roiertj Jmt. AN ACCOUNTANCY CORPORATION 82 -632 HWY 111, SUITE B -1, INDIO, CALIFORNIA 92201 (760) 347 -3665 FAX (760) 775 -7425 ROBERTJ.TFSFA CERIIFIED PUBLIC ACCOUNTANT BOARD OF DIRECTORS CASA FOR RIVERSIDE COUNTY, INC. INDIO, CALIFORNIA MEMBER OF THE CALIFORNIA SOCIEFY OF CERTI= PUBLIC ACCOUNTANTS INDEPENDENT AUDITORS' REPORT We have audited the accompanying statement of financial position of Casa for Riverside County, Inc., (a California not - for -profit corporation) as of June 30, 2005 and the related statements of activities, cash flows, functional expenses, restricted grants, restricted other funds and expenditures for the year then ended. These financial statements are the responsibility of the Organization's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Casa for Riverside County, Inc., as of June 30, 2005, and the changes in net assets and its cash flows for the year then ended in conformity with generally accepted accounting principles. INDIO, CALIFORNIA OCTOBER 12, 2005 ROBERT J. TESTA AN ACCOUNTANCY CORPORATION By ROBERT J. TESTA, C AGENDA ITEM NO. PACE ►aq OF , 3 CASA FOR RIVERSIDE COUNTY, INC. STATEMENT OF FINANCIAL POSITION JUNE 30, 2005 The accompanying Notes. to Financial Statements are an integral part of this statement. leulert'. Je .4ta 1 J AN ACCOUNTANCY CORPORATION AGENDA ITEM NO. 2 PACE ^U_O F ..f TEMPORARILY UNRESTRICTED RESTRICTED ASSETS OPERATING FUND GRANT FUNDS TOTAL Cash on hand and in banks $ 106,606 $ 1,020 $ 107,626 Grants receivable 0 60,462 60,462 Prepaid expenses 7,498 0 7,498 Investments 51,372 0 51,372 Equipment, net 2,467 0 2,467 TOTAL ASSETS $ 167,943 $ 61,482 $ 229,425 LIABILITM Accounts payable $ 14,890 $ 0 14,890 Deferred revenue 0 0 0 TOTAL LIABILITIES 14,890 0 14,890 NET ASSETS 153,053 61,482 214,535 TOTAL LIABILITIES AND NET ASSETS $ 167,943 $ 61,482 $ 229,425 The accompanying Notes. to Financial Statements are an integral part of this statement. leulert'. Je .4ta 1 J AN ACCOUNTANCY CORPORATION AGENDA ITEM NO. 2 PACE ^U_O F ..f The accompanying Notes to Financial Statements are an integral part of this statement. {e oI.,t j J..4 1. AN ACCOUNTANCY CORPORATION 3 AGENDA ITEM NO 4-115- PACE J aq Or_ Jt r CASA FOR RIVERSIDE COUNTY, INC. STATEMENT OF ACTIVITIES FOR THE YEAR ENDED JUNE 30, 2005 TEMPORARILY UNRESTRICTED RESTRICTED SUPPORT AND REVENUES OPERATING FUND GRANT FUNDS TOTAL Contributions $ 59,985 $ 10,259 70,244 Grants 0 299,009 299,009 Interest 1,425 0 1,425 Fund Raising 79,024 0 79,024 Total Support and Revenues 140,434 309,268 449,702 TRANSFER OF FUNDS 331,127 (331,127) 0 Total 471,561 (21,859) 449,702 EXPENSES Program 263,778 0 263,778 Management 52,760 0 52,760 Fund raising 76,232 0 76,232 Total Expenses 392,770 0 392,770 Increase (Decrease) in Net Assets 78,791 (21,859) 56,932 Net Assets, July 1, 2004 74,262 83,341 157,603 NET ASSETS, JUNE 30, 2005 $ 153,053 $ 61,482 $ 214,535 The accompanying Notes to Financial Statements are an integral part of this statement. {e oI.,t j J..4 1. AN ACCOUNTANCY CORPORATION 3 AGENDA ITEM NO 4-115- PACE J aq Or_ Jt r CASA FOR RIVERSIDE COUNTY, INC. STATEMENT OF CASH FLOWS FOR THE YEAR ENDED JUNE 30, 2005 CASH FLOW FROM (USED BYl . OPER TIN A IVIT ,- Increase (Decrease) in net assets Adjustments to reconcile increase (decrease) in net assets to net cash from operating activities: Depreciation Changes in: Grants receivable Prepaid expenses Deferred revenue Accounts payable Net Cash Flows From (Used By) Operating Activities CASH FLOWS FROM (USED BYl IN INVESTG ACTIVITIES r Purchase of equipment Change in investments Net Cash Flows From (Used By) Investing Activities CASH FLOWS FROM FINANCIN A TIVITI Increase (Decrease)-in Cash Cash and Cash Equivalents, July 1, 2004 CASH AND CASH EQUIVALENTS, JUNE 30, 2005 "jelall D101-WIVA 11,418 191 all) 00,75 1F.T4 011ie Income Taxes paid Interest paid TEMPORARILY UNRESTRICTED RESTRICTED OPERATING FUND GRANT FUNDS $ 78,791 $ (21,859) 1,025 0 1409` TOTAL 56,932 1,025 43,014 (37,121) 5,893 1,152 0 1,152 (1,495) 0_ $ 14,890 0 14,890 137,377 (58,980) 78,397 (376) 0 (376) (51,372) 50,468 (904) (51,748) 50,468 (1,280) 0 0 I 85,629 (8,512) 77,117 20,977 9,532 30,509 $ 106,606 $ 1,020 $ 107,626 $ 0 $ 0 $ 0 $ 0_ $ 0 $ 0 ""SO" The accompanying Notes to Financial Statements are an integral part of this statement. •4,�+ �o�ert � �Jedta AN ACCOUNTANCY CORPORATION 4 AGENDA ITEM NO. PAGE I 3 (?F_3L_q CASA FOR RIVERSIDE COUNTY, INC. STATEMENT OF FUNCTIONAL EXPENSES FOR THE YEAR ENDED JUNE 30, 2005 The accompanying Notes to Financial Statements are an integral part of this statement. AN ACCOUNTANCY CORPORATION 5 AkiLAUA 11 r-004 I PAS _3! PROGRAM MANAGEMENT FUND RAISING TOTAL EXPENSES EXPENSES EXPENSES EXPENSES Automotive $ 6,258 $ 3,129 $ 1,043 $ 10,430 Salaries: Executive Director 31,154 15,577 5,192 51,923 Case workers 138,986 0 0 138,986 Office 9,917 12,396 2,479 24,792 Grant writer 6,418 0 0 6,418 Fund raiser 0 0 24,400 24,400 Payroll taxes 15,196 4,342 2,171 21,709 Dues and subscriptions 669 668 0 1,337 Insurance 10,565 5,282 1,761 17,608 Postage 0 333 333 666 Printing 4,046 2,023 674 6,743 Accounting and Audit 2,045 1,505 180 3,730 Rent 4,043 2,022 674 6,739 Christmas party expense 12,415 0 0 12,415 Payroll fees 1,858 531 265 2,654 Promotion 90 45 15 150 Office supplies 4,600 2,300 767 7,667 Grant writing expense 350 0 0 350 Telephone 249 124 42 415 Travel 213 0 213 426 Advertising and public relations 1,487 743 248 2,478 Training expense 3;780 0 0 3,780 Depreciation 615 308 102 1,025 Strategic planning 125 125 0 250 Computer expenses 894 893 0 1,787 Conferences and meetings 2,563 0 488 3,051 Volunteer recognition 2,216 0 0 2,216 Website expense 0 0 600 600 Volunteer finger printing 2,074 0 0 2,074 Miscellaneous 952 414 120 1,486 Fund Raising: Theater events 0 0 6,522 6,522 Golf tournament 0 0 13,015 13,015 Christmas in October 0 0 14,928 14,928 TOTAL $ 263,778 $ 52,760 $ 76,232 $ 392,770 The accompanying Notes to Financial Statements are an integral part of this statement. AN ACCOUNTANCY CORPORATION 5 AkiLAUA 11 r-004 I PAS _3! CASA FOR RIVERSIDE COUNTY, INC. STATEMENT OF RESTRICTED GRANTS FOR THE YEAR ENDED JUNE 30, 2005 The accompanying Notes to Financial Statements are an integral part of this statement. `%. Nr./ kobert j Jelta AGENDA 11EM 14V- � AN ACCOUNTANCY CORPORATION PA -L3 QF 6 UNEXPENDED UNEXPENDED BALANCE GRANTS GRANT BALANCE JULY 1, 2004 APPROVED EXPENDITURES JUNE 30, 2005 United Way of the Desert $ 0 $ 32,000 $ 32,000 $ 0 Judicial Council 23,341 55,555 78,896 0 City of Palm Desert 0 10,000 10,000 0 Betterworld 10,000 15,000 15,442 9,558 City of Palm Springs 0 14,000 14,000 0 Riverside County - California Development Block Grant 0 7,000 7,000 0 California Wellness 50,000 0 25,000 25,000 Superior Count - County of Riverside 0 40,000 40,000 0 Department of Justice 0 4,000 2,074 1,926 Family Services 0 39,058 39,058 0 California Endowment 0 49,996 24,998 24,998 Center for Civic Partnerships 0 2,400 2,400 0 City of Riverside 0 30,000 30,000 0 TOTAL $ 83,341 $ 299,009 $ 320,868 $ 61,482 The accompanying Notes to Financial Statements are an integral part of this statement. `%. Nr./ kobert j Jelta AGENDA 11EM 14V- � AN ACCOUNTANCY CORPORATION PA -L3 QF 6 CASA FOR RIVERSIDE COUNTY, INC. STATEMENT OF EXPENDITURES FOR THE YEAR ENDED JUNE 30, 2005 Salaries Payroll taxes and health insurance Insurance Automotive and travel Grant writing Telephone Postage Office supplies and expense Copying and printing Advertising and public relations Conferences Accounting and Audit Membership dues and subscriptions Volunteer. recognition Training Depreciation Strategic planning Computer expenses Rent Payroll processing Internet expense Hospitality Fingerprinting of volunteers. Miscellaneous Total Budgeted Expenses Christmas party expenses. Direct fund raising expenses TOTAL EXPENSES ACTUAL $ 246,519 27,151 12,166 10,430 350 415 666 7,667 6,743 2,478 3,477 3,730 1,337 2,216 3,780 1,025 250 1,787 6,739 2,654 600 BUDGETED $ 210,000 27,000 9,000 8,000 6,500 1,800 500 3,600 8,000 500 4,000 3,600 500 7,500 4;600 0 0 7,750 6,800 2,400 0 150 1,000 2,074 1,500 1,486 500 VARIANCE $ 36,519 151 3,166 2,430 (6,150) (1,385) 166 4,067 (1,257) 1,978 (523) 130 837 (5,284) (820) 1,025 250 (5,963) (61) 254 600 (850) 574 986 345,890 $ 315,050 $ 30,840 12,415 34,465 $ 392,770 The accompanying Notes to Financial Statements are an integral part of this statement. leOOBrt j. 3.ita AN ACCOUNTANCY CORPORATION 7 ,,AIUWDA V1bVI V -0, �� CASA FOR RIVERSIDE COUNTY, INC. NOTES TO FINANCIAL STATEMENTS JUNE 30, 2005 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A - Method of Accounting Casa for Riverside County, Inc. maintains its books on the accrual basis method of accounting. B - Provision for Income Taxes No provision for income taxes has been made since the Organization is not subject to Federal or State income tax. It is exempt under section 501(c)(3) of the Internal Revenue code. C - Cash Equivalents For purposes of the statement of cash flows the Organization considers all highly liquid debt instruments purchased with an original maturity of three months or less to be cash equivalents. D - Fixed Assets Equipment is recorded at cost and is being depreciated utilizing the straight -line method over an estimated life of five years. Any equipment donated to the Organization with a fair market value estimated at $500 or, more is recorded on the books at its estimated fair market value. E - Basis of Accounting In accordance with statement of financial accounting standards (SFAS) #116, the Organization records contributions and grants received as unrestricted, temporary restricted or permanently restricted net assets depending on the terms and existence of any donor restrictions. The following are the definitions of the various classes of net assets. Unrestricted Unrestricted assets are those currently available for use or restricted only by the actions of the board of directors of the Organization. Temporarily Restricted Temporarily restricted net assets include gifts or grants for which the donors have imposed restrictions that have not yet been met and pledges for which the ultimate purpose of the proceeds is not permanently restricted. These funds will become unrestricted when the designated expenditure has occurred. Permanently Restricted Permanently restricted net assets include gifts or grants which require donor restrictions that the corpus be invested in perpetuity and only the income be made available for program operations in accordance with donor restrictions. F - Functional Expense Reporting The cost of providing the Organizations program has been summarized on a functional basis in the financial statements. Based on management estimates costs have been allocated between program expenses, management expenses, and fund raising expenses as they relate to these functions. Kobert� Je�ta AULNUAIIL11ts �r• �__ �� AN ACCOUNTANCY CORPORATION `. PAt;I � OF�-, ZJ 8 CASA FOR RIVERSIDE COUNTY, INC. NOTES TO FINANCIAL STATEMENTS JUNE 30, 2005 - CONTINUED- G - Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain amounts and disclosures. Accordingly, actual results could differ from those estimates. NOTE 1 - HISTORY AND DESCRIPTION OF THE ORGANIZATION Casa for Riverside County, Inc. was organized on April 23, 1990 as a not for profit corporation in the state of California. The purpose of Casa is to support the development, growth and continuation of programs that recruit and train volunteers to service court appointed special advocates for abused and neglected children involved in juvenile dependency proceedings. The Organization support primarily comes from grants, contributions and fund raising events. NOTE 2 - CASH IN BANK The Organization maintains checking accounts at Northern Trust Bank located in Rancho Mirage, California. The FDIC insures the account up to $100,000. NOTE 3 - EQUIPMENT A summary of equipment as of June 30, 2005 is as follows: Cost $ 8,,396 Less accumulated depreciation 5,929 NET BOOK VALUE Z 467 Depreciation for the year ended June 30, 2005 computed on the straight -line method totals $1,025. NOTE 4 - VOLUNTEER SERVICES Casa for Riverside County, Inc. utilizes volunteers to fulfill its mission. Volunteers for the year serving the Organization totaled 240. No expense has been allocated for these services. NOTE 5 - DONATED ASSETS At inception the Organization received approximately $10,000 in computer equipment from the Riverside County Superior Court for its use. The legal title for the computer equipment remains with Riverside County. There is no financial statement impact as a result of this contribution. Accordingly no amount has been reflected in the financial statements. NOTE 6 - CLIENTS SERVED Based on a report fled by the Organization for the year ended June 30, 2005 the amount of children served was 286. /�OD¢rE�. Jeata AN ACCOUNTANCY CORPORATION 9 �P1�'aBiDA 11tVi N y FRS _ 35 0 CASA FOR RIVERSIDE COUNTY, INC. NOTES TO FINANCIAL STATEMENTS JUNE 30, 2005 - CONTINUED- NOTE 7 - GRANTS RECEIVABLE The grants that are presently outstanding are reimbursed after the Casa office staff prepares reports indicating the payroll amount to be reimbursed from the grant proceeds. As of June 30, 2005 the following amounts have been expended by Casa and have not yet been received from the grantors: Judicial Council $ 30,927 City of Riverside 14,175 City of Palm Springs 14,000 City of Palm Desert 1,360 TOTAL 60 462 NOTE 8 LEASE COMMITMENTS The Organization has entered into a sublease with Riverside County to lease 468 square feet of space at 44 -199 Monroe Street, Indio, California. The lease terminates on June 30, 2006 or 90 days written notice by either party. The rent is $561.60 per month with cost of living increases of between 2% and S% per annum. NOTE 9 - FUND RAISING EVENTS The Organization conducts several fund raising events to supplement its revenue. A summary of the events for the year ended June 30, 2005 is as follows: '*./ EVENT REVENUE EXPENSES NET Golf Tournament $ 21,423 $ 13,015 $ 8,408 Theater Parties 15,951 6,522 9,429 %•o Christmas in October 41,650 14,928 26,722 S-79,024 34 465 44 559 NOTE 10 - INVESTMENTS ' A.summary of investments at June 30, 2005 is as follows: Certificate of Deposit at Northern Trust Bank - Interest rate 2.910 %. Due August 18, 2006 Certificate of Deposit at Northern Trust Bank - Interest rate 1.980% Due August 18, 2005 Polert j. testa AN ACCOUNTANCY CORPORATION 10 $ 25,677 25,695 51 3 2 AGENDA ITEM NO. y3— PACE -L3-(,—OF ATTACHMENT V: EVIDENCE OF COMMITMENT DOCUMENTATION Aumm ITECA NU. ys PAim- Lilt -- �� July 25, 2003 Ms. Marilynn Yeates Executive Director CASA for Riverside County Inc. P.O. Box 3008 Indio, CA 92202 -3008 RE: Grant # 2003 -410 - Dear Ms. Yeates: 1.r►' The California. Wellness - Foundation_Y, � Grantmaking fora Healthier California In accordance with our grant agreement, I am pleased to forward a check for $78,000 as payment in fiill .to CASA for Riverside County Inc. for our grant for core operating support to sustain the provision of mentoring services to abused and neglected youth in Riverside County. We are enclosing a Grantee Report Form, to. be :used for all reports due to the Foundation:. The purpose. of these reports is to inform us about accomplishments toward achieving your grant's objectives and any challenges you've experienced during the course of the grant, as well as to provide an accounting of how your grant funds have been expended to date. The type of information we want is specified in the report questions. Please note that each report will consist of both a narrative and a financial portion. The dates that future reports are due are listed on the enclosed form. Please make a note of them as they 1 are. an important part of the monitoring process, and part of what you've agreed to as a grant recipient. Please make copies of the form to submit at each deadline. If you have questions about these reporting requirements, do not hesitate to. call. The California Wellness Foundation values its relationship with CASA for Riverside County Inc. on this grant. I look forward to. hearing about.your progress during the course of the grant, and receiving a comprehensive overview of your experience when the grant is completed. Sincerely, f1le Program Dir Enclosure -1../ -1i -. A R41DA ITEM NO. `y S PAGE A*— Dec. 30, 2004 CASA / Riverside Attu Marilynn Yeates PO Box 3008 Indio, CA 92202 -3008 Dear Marilynn, It is our pleasure to inform you that BetterWorld Together Foundation has approved a grant in the amount of $15,000 to CASA /Riverside. These funds are to be directed as follows: $15,000 for the Employee Benefits Package as described in your request. Please submit a signed copy of this letter to: Cari Zamora, indicating your agreement with the following terms and conditions. 1. Payment: This grant will be paid to you upon the Foundation's receipt of a signed copy of this letter. 2. ose: It is understood that this grant will be used as described in your correspondence and that no substantial changes will be made without prior written approval of the Foundation. 3. Active Grant: This grant shall be considered "active" for a period of 12 months from the date of the Foundation's disbursement of grant funds and until such time as the scheduled progress report has been received as detailed in condition V. The Foundation has a general policy of not considering an additional request from an organization that has an "active" grant. 4. Account: You are not required to open a separate account for these grant monies, but you are required to account fully for their expenditures. This grant is subject to audit at any time. BETTERWORLD TOGETHER AUk:NDA ITEM NO. 5. Tax Status: You warrant that you are exempt from income tax under Section 501(c)(3) of the Internal Revenue Code and are not a private V, foundation as described in Section 509(a). Any change in this status shall be communicated to the Foundation immediately. You further warrant that this grant will not result in your becoming a private foundation under the public support test, if such test is applicable to your organization. 6. Non - Permitted Uses: You warrant that none of these funds will be used to influence legislation unless permitted by law or used to fund any form of violent political activity, terrorists or terrorist organizations. 7. Reporting: A report is due on a quarterly basis, beginning on the 1st of April, 2005, and should be submitted to Cari Zamora. Report contents: (a) Narrative: A brief overview of the progress of your program • Whether objectives have been realized • Internal /external factors which contributed to or impeded your program's success. (b) Fiscal accounting of the use of Foundation grant monies (c) Fiscal report on the project to include a schedule of budget-to- actual amounts per the original proposal, with explanations for all significant variances. (d) Most recent audited financial statements and IRS Form 990 8. Publicity: We request that in any publicity given this grant, acknowledgement be made that funding was received from the BetterWorld Together Foundation, using its complete name. In addition, we respectfully request that prior to its release, the proposed publicity be approved by the Foundation. Please submit the proposed press material to Cari Zamora by facsimile to (951) 506 -2880. We request that, once available, a copy of the finalized material be furnished to the Foundation. 9. Compliance: Failure to comply with any of the terms of this Agreement may result in one or more of the following: (a) Termination of the grant (b) Your immediate reimbursement to the Foundation of the amount of any Foundation grant funds expended for purposes not previously approved by the Foundation (c) Your immediate reimbursement to the Foundation for all unexpended Foundation grant funds BETTERWORLD TOGETHER FOUNDATIOI& � o i PAS 10. Jurisdiction This Agreement shall be governed and construed in accordance with the laws of the Sate of California, U.S.A. applicable to contracts made in such State without regard to conflicts of law doctrines, and the parties agree that jurisdiction and venue for any dispute regarding this Agreement will be in such state. It is the policy of BetterWorld Together Foundation to discourage beneficiaries of its grants from making gifts to Foundation personnel, giving honoraria m any form, or sending plaques or other memorabilia. The Foundation prefers that the cost of such items not be incurred by a recipient agency. Please sign this letter as soon as possible. To expedite processing, you may fax a copy to: (951) 506 -2880. Mail the original to the address stated on our cover letter to the attention of Cari Zamora. Your grant check will be sent to you upon receipt Also enclosed you will find our "Informational Summary". This summary needs to be completed, with appropriate documentation attached, and returned to us at your earliest convenience. Should you have any questions regarding this request; please feel free to contact us at any time. We appreciate the cooperation you have extended to the Foundation and with this letter go our best wishes for the continued successful operation of your program(s). Sincerely Cari a, On behalf of Paul & Diane Garrett BetterWorld Together Foundation Directors BETTERWORLD TOGETHER FOUNDATIONAr �� CIS- 'ENDA ITEM *Please complete the following and return upon receipt: Organization: Name: Title: Date: hws� I Q BETTERWORLD TOGETHER FOUNDATION AcEJJpA ITEM NO. yS THE C A L I F O R N I A ENDOWMENT December 10, 2004 Ms. Marilynn Yeates Executive Director CASA for Riverside County, Inc. P.O. Box 3008 Indio, CA 92202 -3008 Re: File Number 20042227, Capacity Building (Please refer to this number when corresponding with The California Endowment) Dear Ms. Yeates: Enclosed is a check for $49,996.00 representing payment in full of your Local Opportunities Fund grant from The California Endowment (The Endowment). The fund_ s are to be used in accordance with the conditions outlined in the Grant Award Agreement. Also enclosed are the Interim and Final Grant Report forms for this grant. These forms should be used both as a guideline for drafting your reports, and as a.cover sheet when submitting the reports to The Endowment. As specified in the Grant Award Agreement, we require timely receipt of interim and final reports. I will continue to act as The Endowment's representative to provide any additional assistance in fulfilling the objectives of the grant. If you have any questions please feel free to call me at the Greater Los Angeles Regional Office at (213) 977 -7521. ' ogram Associate Enclosure(s) 21650 OXNARD STREET, SUITE 1200, WOODLAND HILLS, CALIFORNIA 91367 818..703.3311 TEL 800.449.4149 CA ONLY 818.703 .4193 FAX WIN"" -AT MInnw• nnl. I ACMLDA ITEty? Qv ESTABLISHED BY BLUE CROSS OF CALIFORNIA S RONALD M. GEORGE Chief Justice of California Chair of the Judicial Council September 17, 2004 CIL OF GO wo J �f U �� O • � A 1926 �jixduirxl C�mxxccil xrf C��x.Cr�urxcirx - ADMINISTRATIVE OFFICE OF THE COURTS CENTER FOR FAMILIES, CHILDREN & THE COURTS 455 Golden Gate Avenue • San Francisco, California 94102 -3688 Telephone 415 - 865.7739 • Fax 415 - 665.7217 • TDD 415. 865 -4272 Ms. Marilynn Yeates Executive Director CASA for Riverside County P.O. Box 3008 Indio, CA 92202 Dear Marilynn, WILLIAM C. VICKREY Administrative Director of the Courts RONALD G. OVERHOLT Chief Deputy Director DIANE NUNN . Director, Center for Families, Children 9 the Courts Thank you for submitting your Request for Funding (RFF) documents for 2004 -2005. For the last several years, the Judicial Council has been committed to the continued funding of all California CASA programs. In budget year 2004 -2005, 39 existing programs in 40counties will be funded, as well as one new development program: We are pleased to inform you that the Judicial Council has approved funding of $56,400 for your CASA program. This amount reflects the average ($49,225) of the funding granted to your program in fiscal years 2002 -2003 and 2003 - 2004..: Your program has also received $1,383 for computer equipment and labor to assist the data collection for the new Data Collection Project. In addition, an extra $5,790 has been included in your award to cover requested Department of Justice screening expenses. A Budget Revision form is attached. This revised budget form must be completed to reflect your actual award amount. Please submit a revised budget electronically by 5:00 p.m. Thursday, September 23rd. A delay in submitting the form will mean a delay in receiving the funding contract. Please note: once the contract is .fully executed, expenses incurred from September 1, 2004 to August 31, 2005, will be reimbursable under the grant. --- ALENDA ITEM NO. 7 � Ms. Marilynn Yeates September 17, 2004 Page 2 If you have any questions, please call me, Stephanie Leonard, CASA Grants Manager, at (415) 865 -7682. Sincerely, Stephanie Leonard CASA Grants Manager AULADA ITEM WOO PACE I qj_QF —.5L1 June 3, 2005 OFFICERS Ms. Marilyn Yeates Y, Executive Director JOHN E. FI TZGERALD III Vice P1esiclent CASA for Riverside County, Inc. - United Way ,"1,, P.O. Box 3008 of the Desert Indio, CA 92201 Post Office BO71 1990 The CASA for Riverside County, Inc - Coachella Valley Area has been approved Palm Springs, CA 922631990 by the board of directors for a 2005 -2006 funding allocation level of $32,000.00. (760) 323 -2731 Dear Ms. Yeates: FAX: (760) 778 -1421 www.unitedwayofdiedesen.org 30, 2006. The first payment will be July 31, 2005, and ending payment will be psunkedwv ®aol.cDm unitedwayof hedesert6dc.rrcom On behalf of the board of directors for the United Way of the Desert, this letter is OFFICERS to inform you that they have completed the Budget and Allocations process for the President programs and services being provided by our member agencies. Thank you for JOHN E. FI TZGERALD III Vice P1esiclent your helpful participation during this important annual process. ROBERT J. DICKEY Secretary your expenses are 21.47 percent, the board is issuing you a warning that you are DR. JANICE S. LYLE projected revenue of our 2004 -2005 campaign. Your allocation will be distributed Treasurer The CASA for Riverside County, Inc - Coachella Valley Area has been approved GARY W. DACK by the board of directors for a 2005 -2006 funding allocation level of $32,000.00. BOARD OF DIRECTORS This funding is to be used for a local case manager for youth services, as defined in Psalm u �d School Dist your application, and with the understanding that this funding will help ensure that � TTA A, hr- local court dependent children will have a special advocate. MICHAEL �'D Cable Please note that the board's funding guidelines request member agencies to JOHN J. BENOIT maintain administrative and fiord raising expenses below 20 percent, using the Assemblyman, 64th A.D. This funding is made possible by the generosity of our donors and is based on the Waiter w Legal CLARK your expenses are 21.47 percent, the board is issuing you a warning that you are Group projected revenue of our 2004 -2005 campaign. Your allocation will be distributed � � PA's as usual in twelve payments. The funding cycle is from July 1, 2005 through June ROBERT rt DICKEY 30, 2006. The first payment will be July 31, 2005, and ending payment will be D� � E DkEDRK H June 30, 2006. JOHN J. FERREL L! Jdin F Kennedy Memorial Hospital JOHN E. FITZGERALD 91 -,Mae . Also, the United Way board of directors has approved a one -time only funding gift FitzGerald G ML" THOMAS L REESlre�rlFs for your organization in the amount of $3,000.00, to be used for the same purpose R"rsk* CM DapartrrrerM � G� as stated above for the allocation. A check for this amount will be mailed after STEVE HETTZNER July 1, 2005. Maniffs Rancho Las Palmas Resort 5 Spa TERRY B. HENDERSON We would appreciate it if you would notify us of an c}����es in our leadershiTl or KD a Associates appreciate y � =6 Y Y JAMES R. PALMER contact information.. Also, please include us on your mailing for events and JR Defense Products PEAT, JR. news. Creosote Partners FOCH ?UT' PENSIS Coachella Valley Unified School District WILLIAM T. POWERS Pacific We are appreciative of the important work that you do to improve lives in our STEVEN B!Ro S community. Look forward to seeing you and your team on June 22 at our Agency Coachella valley Water District Funding Breakfast. Pal MICHAEL SEied Sdw Palm springs Unified sawel District PATRICIA DELGADO SERVICE Sincerely, inda I engel Executive Director Las Casuelas Terraza DR. MARIA C. SHEEHAN College of the Desert DR. DORIS L WILSON Desert Sands Unified School District SUPERVISOR ROY WILSON 4� 4th District. County of Riverside MERRITT W. WISEMAN Civic Leader SUSANA M. WOLFE JW Marnotts Desert Springs Resort ,w. CENVA ffEM NO R PACE OF _ . City of La Oumta STEPHEN G.HOFFMANN Please note that the board's funding guidelines request member agencies to Carryon National Bank SANDRA HOUSTON maintain administrative and fiord raising expenses below 20 percent, using the NDREWTJEJESSSUP, SR. Form 990 to determine the percent of these expenses to total revenues. Because CARL C L KKARCHER your expenses are 21.47 percent, the board is issuing you a warning that you are o JA S. LYLE not in compliance with this funding guideline. R CH Springs VICKI ` Imperial Urigation District KAREN A. OPPENHEIM We would appreciate it if you would notify us of an c}����es in our leadershiTl or KD a Associates appreciate y � =6 Y Y JAMES R. PALMER contact information.. Also, please include us on your mailing for events and JR Defense Products PEAT, JR. news. Creosote Partners FOCH ?UT' PENSIS Coachella Valley Unified School District WILLIAM T. POWERS Pacific We are appreciative of the important work that you do to improve lives in our STEVEN B!Ro S community. Look forward to seeing you and your team on June 22 at our Agency Coachella valley Water District Funding Breakfast. Pal MICHAEL SEied Sdw Palm springs Unified sawel District PATRICIA DELGADO SERVICE Sincerely, inda I engel Executive Director Las Casuelas Terraza DR. MARIA C. SHEEHAN College of the Desert DR. DORIS L WILSON Desert Sands Unified School District SUPERVISOR ROY WILSON 4� 4th District. County of Riverside MERRITT W. WISEMAN Civic Leader SUSANA M. WOLFE JW Marnotts Desert Springs Resort ,w. CENVA ffEM NO R PACE OF _ . August 3, 2005 Mr. Doug Hosner Director of Development CASA for Riverside County PO Box 3008 Indio CA 92202 -3008 Dear Mr. Hosner; Enclosed please find the Service Agreement for the Expansion of Blythe Services program as approved by the Regional Access Project (RAP) Foundation Board of Directors on July 28, 2005. I would appreciate your review and appropriate signatures. Please return both- signed originals to the RAP Foundation office, and once received, the Board will sign and return one original to you for your files. Funding for this program year is $16,100.00 to be used as follows: $10,000.00 funding the position of Case Manager for the time actually spent in Blythe — 1 day per week, and $6,100 travel costs for volunteers making the trip to Indio Youth Court. Travel costs were projected to be 218 miles round trip four times per year equaling 872 miles per CASA times 15 CASAs equaling 13,080 miles at .375 per mile for a total of $4,900. Phis food per CASA per trip figured at $20 per day for a total of $1,200 and a grand total of $6,100.00. Unless other payment arrangements are requested, the funds will be paid in three installments of $4,025.00, one installment of $3,525.00 and a final payment of $500.00 for a total not to exceed $16,100.00. The initial payment of $4,025.00 is to be paid within 30 days following execution of the contract. Ms. Eva Guenther - James, Program Manager, will be calling your designated contact person to discuss the report format and any questions you or she might have regarding the award. If I may be of any assistance to you please do not hesitate to call. Sincerely, - . 414 acox Executive Director 42 -600 Cook Street # 201 A - Palm Desert, CA 92211 - 760- 674 -9992 - FAX 7 M#i A 140. Y July 1, 2005 Doug Hosner, CASA P.O. Box 3008 THE CITY OF INDIAN i WELLS CALIF0PNIA Director of Development Indio, CA 92202 -3008 Re: City of Indian Wells Community Assistance Funding Dear Mr. Hosner; It is my pleasure to inform you that the City Council has considered your request and approved an allocation of $10,000 to your organization in Fiscal Year 2005 -2006. Attached is an Agreement for Community Assistance Funding. Please fill in the information on page 8, and return to this office with the appropriate organizational signature on page 9. Once we receive the agreement we will finalize the agreement and send a fully executed copy to you with a check in the amount of your award. Once again, congratulations. such a worthy organization. .I Susan Weisbart Management Analyst The City of Indian Wells is proud to partner with Please note: that all funds that are disbursed shall be used solely for the program and /or service described in your application. You will be required to re -apply for funds for the Fiscal Year 2006 -2007 should you desire to seek further funding. Applications will be available on -line beginning January 2"d, 2006 at www.cityofindianwells.org and no further notice will be given regarding future applications. dOA ITEM P�o.___,�. PA L(Lj_'0_ 44 -950 Eldorado Drive • Indian Wells • California 9ZZI0 -7497 • V (760) 346 -2489 • F (760) 346 -0407 - www.CityofindianWells.oR ATTACHMENT Vi: 2006 -07 CDBG GRANT TIMETABLE AIG EN DA ITEM WU. 7ls- co U ti 0 0 N co 0 0 N N L O C W N Y W J `F- O U L N C .0 C _co L O r ►1J ..T. C O Co E2 m nm0 0 a m =- F-C m a 0 a y C p 00 >U m` py 'p �o �> 6 >� v0 m m wD m 3 0 x a C to L o C 'o 0 m 0 o c5 3 m > °� :=w 3 X w V 0 m C a 0 m- mom c scmc 3 m? > °0 d C O; m m c o U> L w 0 :30 C X -0W ov m mmm- c > °� .7 X w L m m C Vc 0� c m o m > °� ` m m c ' > Q fn U ` fA m U O c U m L m m := a�i u)c �= 0 0 �> m� c to mw >y rn m m e w� to O m co .0 c- c� m O mU ..r da`yi Lim, �m O C c 33 moo > m C6< >�f4 rnQ mU m t= a w� cco N O m N U C c� m O «. _mU cA�yUP L mom O C C i>33 o o 0 »0mN mv<mm >m(n ImQ �mUv> m c� w� mw rn C 2 O Nm C L O O O U c >3 ' o my m m x X x x x x m X x x x X X L a x x x x x x X x x a a f0 x x x O L L m .L N LL x x o o 0 x x x O L L Of 04 ' X X X 3 t x X X X _ L t c ° o x x c o c 0 rn o, X X X rn CPI o (71 o c 0 0 o x X X c c m X X X OL Z � - v X X m m X X X X O C13 c c m c CD X X X m m m X x o> Q x X X X T 7 X W m i O C>` O -0 1 0 a m tq O C _ mY C O ' U N m m 0 C O m w 12 CL 0 >, U C a ar 0 CD 02-5b co m ` ° m C L) N cm -Cv U 0 3 Y u; rn m N 0 a 0'mv'U°� N m rn3 O ,C = O > O .n m w mm co 0) 3- CO t v@ U N - E m E C C i M- m '� m m m O U 3 3 �0.2 -a •> 2 3 m E ai N Mo vi O 0-0 U_ a N C t 0 L "O U E V) U U � .O O� m 0 ..0 U y � t0 h-6 U 0 L ,�+ 8 d, w m N 3 o c `� f' 0� > am a`r'c _m °_o c� m _� °� 3 c (,D 3 °v_� 3 E ? m m o cw c rn c me 3` m �v 3 m c and y m° c ato > w U m to O C m t6 U3 3 m O t- N O t- 3 'C >> 'm tUA m m m m +- a 0 3 L m U O a L m O m m m E y N C T Q a m E O !t 0 N C �`. 3 C N m 3 `> ._. > m m 3 U a:d �•c ' 3 pp m p` U> _a m mmmm�yv` Wz �m �m�my' >cE >m °3�cmi m °� C c pommwm° 0 -0 s 0 enO°QU ` n 0 O c >3m2aU0)MCL:ocgvp m E o x m m E N °' t mdo 3 N"we Nkmof AQEWA ITEM NO._ I/Y ATTACHMENT VII: RIVERSIDE CO. DPSS COUNT OF CHILDREN IN PLACEMENT AM DA ITEM N,3. �� Riverside County DPSS - Children Services Count of Children in Placement' (in Riverside County) by city /zip and Facility type Data as of October 21, 2005 ' Does not include Non Foster Care and Guardian Home Placements. Source: CWS /CMS, Data Analysis Unit, mam, 10/21/05 N TF!2 AGENDA ITEM NO.! 7 ��. I OF Court Foster Family Relative/ Tribe city Specified Agency Foster Family NREFM Small Family Speed Grand Zip Code Home Certified Home Home Group Home Home Home Home Total Aguanga 92536 4 5 9 Anna 92539 2 3 2 7 Banning 92220 23 55 Beaumont/Cherry Valley 92223 11 9 90 Blythe 92225 45 42 Cabazon 92230 5 3 46 11 Catimesa 92320 5 1 Cathedral City 92234 M 71 15 95 Chino 91710 7 2 13 Coachella 52236 70 77 Colton /Grand Terrace 82324 5 Corona 91719 7 1 15 Corona 91720 8 Corona 92804 1 2 2 Corona 92879 22 4 4 18 - 2 1 50 Corona 92880 20 8 —1-6-- Corona 92881 12 5 2 15 35 34 Corona 92882 22 7 22 2 53 Corona 92883 1 17 3 1 3 24 Desert Center/Eagle Mountain 92239 1 Desert Hot Springs 92240 5 3 49 1 Elsinore 92530 12 11 33 1 58 56 Elsinore 92532 11 —2----- 13 Hemet 92344 2 Hemet 8 3 35 2 46. Hemet 30 7 23 2 62 Hemet/Valle Vista 35 8 49 1 Homeland K92203 5 93 Idyllwild — 7 Indio 5 9 2 2, 162 Indio 2 =26 13 Indio Hills/Dhs /Sky Valley 92241 3 2 9 La Quinta 92253 3 2 20 31 Mecca /North Shore 92254 1 25 26 Menifee /Sun City 925841 21 11 12 44 Mira Loma 917521 28 14 6 15 63 Moreno Valley • 92388 3 3 Moreno Valley 92551 1 97 18 4 40 2 162 Moreno Valley 92552 2 1 Moreno Valley 92553 193 1 24 89 3 307 Moreno Valley 92554 2 1 Moreno Valley 92555 1 72 3 18 23 1 3 118 Moreno Valley 92556 4 Moreno Valley 92557 130 6 6 37 1 q 180 Murrieta 92362 3 3 Murrieta 92562 21 12 14 5 52 Murrieta 92563 47 9 2 6 64 N. Palm Springs 92258 1 Norco 92860 3 5 11 1 19 Nuevo /Lakeview 92567 10 3 15 28 Palm Desert 92211 1 4 Palm Desert 92260 1 1 11 5 Palm Springs 92262 4 18 13 Palm Springs 92264 1 3 22 Perris 92570 29 5 13 58 4 105 Perris 92571 84 10 4 46 144 Rancho Mirage 92270 1 2 Redlands 92373 3 2 4 Riverside 92501 11 5 14 9 30 Riverside 92503 31 —30-10 51 122 ' Riverside 92504 22 18 10 24 4 78 Riverside 92505 271 91 12 34 12 94 Riverside 92506 2 141 61 201 41 1 46 ' Does not include Non Foster Care and Guardian Home Placements. Source: CWS /CMS, Data Analysis Unit, mam, 10/21/05 N TF!2 AGENDA ITEM NO.! 7 ��. I OF i-. ATTACHMENT Vill: AUTHORIZATION TO SUBMIT CDBG FUNDING APPLICATION AGENDA I-TEM NO PAM_ OF '- -- CASA Court Appointed Special Advocates FOR CHILDREN January 20, 2005 Vindio P.O. Box 3008 Indio, CA 92202 -3008 Phone: 760.346.2497 Fax: 760.863.7431 ❑ Riverside 9991 Country Farm Road Riverside, CA 92503 Phone. 909.358.4305 Fax: 909.358.4302 - To Whom It May Concern Re: Letter of Permission To Submit Proposals ❑ Southwest Justice Center 30755 -D Auld Rood, Suite 1226 Murrieta, CA 92563 Phone: 909.304.5220 Fax: 909.304.5210 `%.r/ This is to confirm that Marilynn Yeates, Executive Director, or Doug Hosner, Director of Development for Casa for Riverside County, Inc. have permission to submit proposal/ grants for this non -profit organization. Sincerely, Carla Lidner, D.D.S. President Board of Directors for Casa for Riverside County, Inc. •de AGENDA ITEM NO. Div PA€ E_6_ t- -OF ,*-. ATTACHMENT IX: MEDIA ARTICLES RE: CITIZEN PARTICIPATION AGENDA ITEM viv ` Of ACEND A iI EWI 'tlt3. PAS j;5L-O AGENDA Ill "Wi NQ- PAM. rQF Jim Lauffer is the special advocate for two Riverside County boys, including Matthew, 15. In addition to attending court hearings with the teenager, the Corona resident takes him on outings. Matthew and Jiro. `He's good, red good to me' n an afternoon in the mid- I was give,,,, dle of the summer, Jim Lauffer drove to a tract the hard Cases house along a nondescript cul- de-sac in the San Gorgonio Pass because of near Highway 60. The house is a group home where Matthew, my police 15, has been living with five other boys. background. ++ Lauffer, 64, who spent more JIM LAUFFER, than two decades as a reserve A RIVERSIDE POLICE officer with the Riverside Police DEPARTMENT RESERVE Department, mentors two teen- OFFICER FOR MORE THAN age boys who have run into TWO DECADES trouble with the law. Matthew's father abused the "Your braces doing OK today boy, who used to get so angry "Yeah," Matthew answerE that he would hit his head looking out the window. against walls. Matthew is on "Is your stepdad still gone? several kinds of- medication for "Yeah, they're splitting ul depression, attention deficit dis- Matthew said. His mother, 1 -order and other problems. said, is moving in with l Matthew desperately wants sister. lo be _placed back with his As they drove, Matthew coi mother and was despondent plained about their last outiri after a recent court hearing when a .judge opted not I to a ride on the Palm Sprin; Aerial Tramway. Afraid reunify the family, Lauffer said. heights, the boy said the tr The boy's mother and stepfa- gave him a headache apa WE ther did not show up for the a nightmare. hearing, Lauffer said. - I had a dream that Wil E I "I was given the hard cases the tram," he'said. because of my police back - Lauffer .1 ed the teen whet I ground," said Lauffer, who has er he has ' t of nightmares. been a CASA volunteer for "Some;`. "es," Matthew r about eight months. "You have plied to be very firm, but you have to ."Do you have any go( understand where they're com- dreams ?" Lauffer asked. [ ing from" "No, not really," Matthe Lauffer and his wife became said, turning quiet. interested in the program after They arrived at the lake, an reading about it in the newspa- Lauffer dropped off Matthe per. But his wife worried that while he a of parking g p g permit . she'd become too emotionally involved and opted not to "He's good, real good to me Matthew said pur- sue it, he said. _ once his mentE was out of earshot. "You just can't. let it get to "If it wasn't for CASA, you," he said. wouldn't be where I am," th Lauffer first met Matthew in teenager said. San Bernardino County Juve- Lauffer takes him places th, nile Hall, .where the boy had he hasn't been before. been sent after hitting another Matthew unpacked his fisl kid. He and Matthew now try to ing pole. He didn't know how t get together at least twice a tie the hook but threw his: Un month out anyway in hopes of.catchfn On this day, the pair decided trout. to go fishing..After darting back Lately, Matthew has bee: inside the house for his pole, doing well. He has beer `nke Matthew jumped into Lauffer's off probation, is doing I i hybrid car, and the pair headed school and has earned'ciE south toward Lake Fulmore in I privileges for good behavior a the San Jacinto Mountains. the group home. Matthew seemed agitated; - /"He's doing great," Lauffe Lauffer made conversation: sa id. yv�, AGENDA WEM NO. �_rl *,%A~ 141S' P4C S� T7 -`4' m . \' ®�o� }.\ \� 2< � »� +< : . . -�� \ < «� _: ��+��� AGE14DA REP NO \ ° PACE 1-5-q Of ` LA1'RENSAi� �HISPANA M IL S 1EP, 0 1 E Indick Ca. dd 24 al 30 de Junio del 2005 B-1 L`PRENSA= --HispANA. .Blythe teen Kady Vega, front, celebrates a successful- day at the 'Second Annual CASA Golf Tournament, and at the raffle event following, with team members (left to right) Ray Fuller Dan :Baldwin an,&CASA bqord.-m tuber_ 1m Streeter. AGENDA ITEM viv.- PACE A#"_ INDIO ---------- Kady Vega, a 17 -year old junior at Palo Verde High School 'in Blythe, never dreamed she would have the day she did at the June 13 golf tour- nament benefiting , Court Appointed. Special Advoca- tes (CASA) for Riverside County. Not only did Vega hold her own among older, more experienced players, helping her four - person team card a respectable 73 in "scramble" play, she cap- ped the day by winning a set of golf clubs at the raffle during dinner following the tournament. When her number was member of her school's Lady Jackets golf team. She had been a last - minute addition to the field, when another participant offered to contribute his tourna- ment slot to a student pla- yer. "I can't believe this," exclaimed Vega while collecting her prize, tears running. down her cheeks. ".I have never won anyt- hing, ever." The clubs are a limited edition set designed for City of Hope, American Cancer Society, and were donated to the tournament by CASA board member Johnnie Manning. called and the audience rea- lized the teen had won, the dining room at Bear Creek Golf Club in Murrieta erup- ted in cheers, high fives and hugs for Vega, who is a pACE_J_ W_0F the e Vol. XXI I Issue #110 October 2005 La Quinta Chamber of Commerce The Voice of Business MAYOR'S LUNCH SERVES NEWS The September Mayor's Lunch at La Quinta Riverside and Murrieta. resort was chock full of members, new members, "CASA was formed in the last 1970's," news and information. Yeates said. "CASH volunteers become sworn Board Chair Lew E. Piper announced that the officers of the court, and each child also has an Board hired Ruth Finholt as the Chamber attorney and a social worker. We become diligent CEO/President. (See article this page.) He also advocates for the services needed to help each reported that the Chamber added 149 new child become a healthy and productive , ult, members between Jan. 1, 2005 and Sept. 1, . able to break the chain of abuse, neg " ` or 2005 -89 in the last three months. Fifty new abandonment." members were introduced at the Yeates reported that has luncheon that day.. Also, the four case managers and about 200 Chamber's new logo was displayed at volunteers in Riverside County. "That the event (see box this page)• is simply not enough," she said. "We The day's speakers were: La get 15 to 20 requests per month for Quinta City Councilwoman Terry a CASA volunteer for new uses in Henderson, filling in for Mayor Don the court system. We have 225 Adolph, and Marilyn Yeates, execu- Marilyn Yeates children in the CASA program now, tive director of Court Appointed Special and there are about 4,500 that need CASA." Advocates (CASA). Modern Woodmen of Each trained CASA. volunteer can manage American sponsored the luncheon. the cases of one to three children at a time, she Henderson provided an update on City activ- said. They usually' make personal visits with a child ities, including the opening of the new City every one -to...two weeks. They also generally Library; current residential, commercial and road attend court hearings with the child. projects; plus information on Community Services She asked. attendees to consider becoming activities and the SilverRock golf course. (See the CASA volunteers and to make donations City Manager's message on page 9.) to the non- oAt agency. gency. More information Yeates discussed CASA for Riverside can be obtained by calling Yeates at County, Inc. According to its materials, CASAs 760- 863 -7425 or visiting the Web at mission is to speak for the best interests of abused, www.casariversidecounty.org. neglected and abandoned children in the courts of The next Mayor's Lunch will be 11:30 a.m. Riverside County. The agency has offices in Indio, Thurs., Nov. 3, at La Quints Reno , y� AG PAS OF_3L4. T M DESEit'3' SU ` (From left) Executive director Marilyn Yeates joins Rancho Mirage Deputy District Attorney Kendall Berkey, Jeanette Seman and husband Rancho Mirage Mayor Alan D. Seman attend the CASA (Court Appointed Special Advocates) for Riverside County "Hibachi Halloween Hijinks" benefit on Oct 28 at the Hibachi restaurant in Rancho Mirage. AIDE #QUA ITLIA THE.DES.ERT SUN Desert Scene SUNDAY-OCTOBER 30, 2005 B7 CANDID CAMERA aneLLiJiA JCourt Appointed Special Advocates) for Riverside County "Hibachi Halloween HilaFlcS ":'benefit was held Friday evening at the Hibachi restaurant in Rancho Mirage. Wlkis a nonprofit organization serving at -risk youth in the juvenile court dependency system (From left) Spider -man ,aka board member Steve Sanchez, arm - wrestles Batman, alias Randy =;Boyd, while a vampiric Steven Quintanilla cheers them on.. AGENDA ITEM No. 45- PACE OF /q W �'F 7 is Mbi i M' iii Ot�t t}BER 5"2065_ Dean Seymour of C Group Interiors (from left) welcomes columnist and television personality Gloria Greer and Palm Springs Mayor Ron Oden to the "Christmas in October" party at Le Vallauris on Friday night Seymour and his partner, Philip Colavito, hosted the fifth annual event, celebrating their elaborate holiday decorations at the neighboring Willows Inn. The party benefited nonprofit Court Appointed Special Advocates (CASA) for Riverside County, which serves abused, neglected and abandoned chil- dren who are in the juvenile court system. I . 10^ AGENDA il'-M, w,,�. 7� PA OF More than INSIDE _ a geographic tribute to local events covered Cf e in our valley since our April 2002 launch! Y' � IM 3 riF 7T y pp S s —- t `m LLJ.e� Q to Cl 0 N N m O U 0 3 m Z PACE, a . COD. MUM i■■ ■ ■r .rL c 0. l03. C3 Iom ca v i■ 03 0 �J C m 0 '< >,, -0 .c u y O 0 a"i O Z ciao MGLie 003 ?Od3 m i. to >, a ", m 7g 0 is a oai .cd b '� O °) ^ 0 O m o ot1 a� O w 'ti" O cd (b 0 o M U ►. . m.o-o a��r�.aacescd 0 p e0 .� > lo ed Lb cd .� i > . U . .b0: � Q � •G . N O to .° aU > td GV N b U MU U 0 *., Co o 7 CO w m co M �+ m o ice Z.ov oA 20 w cxj v M 'a�i ° W o o a°i ' . lu 0 o p M a o 0 N y > 0 0 0 N O N , On bA a *+ •q . O DAM N o aA a w w O a 'CS bo eA .�+ ,. :.. 0 O .O 0 d :M w N. w ¢ 3 .. o „ .d M ° .o O 0 0 U .. 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Ob" Ed U �a ca~ U cai.o °'aAo f?@;w�o � � > a � �, � > .b 0 •�. DA M V 0 3 co � = �, ¢ 0 0' o'-° a° w a'. n.c y O °' aU boo o 'd m 0030 eae U ° o oA aaa�¢ °•sy y O o +.+ . U 0 OO 0 m oA, U rfl .c .� a U 4) ¢ AC DA ITEM! We PAM OF__, ti • - .EDITORIAL BOARD .. Robert J. Dickey Steve srberruan - Cindy Men ss sha9 make tt`.• lan M*edi g as estawww.,M M rd96% ar prahbiW4 the kee eear ne rnesmr 4 — ruwauRi azcuva t7x ennusw_Tw tortoe W, Anog" the heeama el Wed ar er.lhe press, r the nght or the people peWeaNy to Denise Goolsby Cheryl Burns Raymond Smith auemhle, and to ptui. the GorensnlM to a m wvss rl 9rievwe.• 'omow eraewsusrrrer same...,c 1W&A= aUr 4 ROOM= n,Ue . frri b U.S [a.lihAiea _ Scott Burch - Jamie sepulveds llailcy OPINON oMrs3MWWT,eaun DEREK baPtn)tINAIJiYiTMOLasL' t1YN . sva ca+uur tv-a - rweeaaasoF wnrewaa.usar • commWa Ylelaasi9l cahal t YM12T - �_. COMAKIN"aIpAtm'A sarroew. ♦ast<snnot Cindy Uken ►rrorrc 778 -4617 vax 778-0654 ¢users CindyJlkerl@Ihledesertsun.cdm I- OUR VOICE Make. a vow to Delp a child as a new school year begins Volunteers needed to serve as court advocates for youths Every youth needs an adult in his life to serve as a role model, mentor and.advo- tate. Every youth needs someone who cares and who has the child's best inter- ests at heart. Many children are-blessed with caring, nurturing parents; many are not. That's where volunteers can fill a void — provided there are enough volunteers to go around. Riverside County's. Court Appointed Special Advocates program continues to search for volunteers willing to serve as advocates and mentors to- chil- dren in the courts. This is one shortage we can ill-afford to ignore. We must in- vest in our children. CASA volunteers serve as friends, men tors and a voice in the court system for children who are abused, neglected, aban -. doned or removed from their home to en- sure their safety by the Children's Protec- tive Services. The need is significant, an estimated 450 volunteers are needed. Why? Because during calendar year 2003, Riverside County Child Protective Services received 34,480 referrals of abuse and neglect. Currently our county has approximately 3,986 children in foster care who are de- pendents of the court. That's a mind - numbing number of youngsters being robbed of their childhood and short- changed of possibly reaching their full po- tential as adults. A commitment of time from someone who cares could help change that. Volun- teens who give of their time and compas- sion give abused children hope.. CASA volunteers are trained and appointed bya judge to speak for these children in court. The importance of this duty cannot be overstated. Given the history of abuse and neglect the boys and girls served by the program have experienced, entering the How to vokmteer No previous court experience is necessary; a badtground dtedt is required. CASH volunteers are the only private drizens vi to becane swum officers of the Juvenile Court after suemssful compledon of a 35-hour training program. volunteers work with one to three duldren. Orientation sessions: ; ■ Saturday, Sept 8, 6 p.m., Southwest Justice Center's Juvenile Hak 30755 -C Auld Road, Murrieta ■ Sept 9, 6 pm., Riverside County Office of EduceGon, 3939 .13th Street; Riverside ■ Sept. 8, 6 p.m., Woridome Development Center Cordererim Center, 44199 Monroe Street (at Fred Waft, WHO Regulmmentc Five trakdtMg- sesgam are required: Sept. 18, 25, Oct. 2, 9 and 16; 9 am. to 4 p,m. For mom kd m dw4 cab: Marilyrut Yeates or LeAnm SWA in Indio (760) 3462497, Rana Corona or Matilde Reyes in Indio (760) 863 - 7424 (Se habla espailol), Kathy AtWns in Munietl (951) 304 -5220, Barbara Hohman in Riverside (951) 356 '4305, or Denise Chavez (951) 3584343 In Riverside (Se habia espanoL) legal system can be traumatic. The chil- dren are often terrified by the uncertainty that awaits them, including where.they'll live. It is essential they are shown an adult role model who truly cares about them. The roles volunteers play in building trust with a child who has never had much cause to trust an adult might be the single most vital determining factor in the future happiness'and,success of that child. The importance of the work CASA vol- unteers do is the reason intensive ad- vanced training, worth about $2,000 per volunteer, is required. Children are dis- persed all over he county and even out- side the county, so volunteers must be willing to drive to the children. Advocates also must commit. to spending a minimum of 15 hours a month with their child, serving as a mentor and role model and obtaining information that can help a judge make decisions about the child's future_ It is a significant time com' mitment for both the child and the vole teer, but the rewards can make it worth- while. ri DA ITEM NO. y s PACE ) �0 €r_ nni i''I QF V4 Page 2 AIiEt! DA ITHA 144. ys f CASA _volunteers~ .Help abuse" dt clii.ldren Spring Street. campr�s to host national program.ivith- Saturday `classes ... brought to a swift and appropriate conclusion. Then are many people helping children by carrying a caseload • and gathering information and spending time one -on -one with the. ' children they are helping and then making a decision for what they , feel is in the best interest of that ' child. According to-the fact sheet, volunteers usually spend around • 10 hours-doing research and: . conducting interviews prior to the fast court appearance. Some cases are more complicated and require 10-15 hours amonth. Marilynn Yeates Then are now 900 CASA i Photo courtesy of Doug Hosner programs across the country , including Washington, D.C. By Karl Sariano and the U.S.. Vigin.1slands. CASA is a priority project of the people in the community are Department of Justice's office of putting in their own time to help Juvesnle Justice and Delinquency , speak for. the best interest of Prevention abused and neglected children who The office also provides partial } are in the juvenile court system funding for the National CASA s people are training to become _: Association- court appointed special advocates The National" CASA Association a , •'� (CASH) through the tuition free 'says that children who have been. .. : classes that Palo Verde College . . 'assigned CASA volunteers tend, ty ,• (PVC) Spring Street campus is now. ' to spend less time in court and : - offerin less time within the foster care " CASH volunteers are not lawyers . system than those without a CASA or social workers, according to a voluntee{. .. fact sheet from the National CASA: Judges have acknowledged that r;eS g Association Instead, they are. CASA children also have better . people who are -there to assist the chances of finding permanent f ", court providing judge ud with , : homes.than non-CASA- children. - carefully researched background of The Spring Street campus of the child to help the court matte a• PVC offers a tuition free course to sound decision about that child's . it .._train representatives to speak for future, the best interest of abused and As a child advocate, a CASA neglected chiliren.i. There will be � r' t' volunteer has three main ' -an . orientation on Tue., Feb. 28 at respons i7ities, according to the ,: the PVC spring street campus- ' CASA fact sheet Executive Director Marilyn They serve as a'fact -finder Yeates will be leading the for the judge by thoroughly orientation. Saturday sessions will researching the. background of each , begin on March• 5 from 4:00 a m to assigned case. 2:50 pm-, through April 16. • • They speak for the child in the. For more information contact 1 courtroom, representing the child's Rhonda at 921 -259'1 or Executive best interests. Director Marlyn Yeates at They continue to act as a `watch (760) 863 -7425, or email her at dog• for the child during the life casarc@earthlink.net, or visit the of the case, ensuring that it is National CASA Association - website at www.nationalcasa _ org. Page 2 AIiEt! DA ITHA 144. ys f CDBG APPLICATION • AGENDA ITEM NO. y5- PACE PROPOSAL NUMBER Date Received COUNTY OF RIVERSIDE N"NO COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM APPLICATION FORM I. GENERAL INFORMATION: Name of Primary Activity Sponsor. Lake Elsinore Mailing Address: 130 South Main Street Telephone Number: (951) 674 -3124 Zip Code 92530 Fax Number: (951) 471 -1419 Contact Person: Robin K. Chipman Tide:Building /Safety & Code Enforcement Mgr. Program Manager Robin K. Chipman Phone: (951) 674 -3124 ext. 226 Address (If different from above): Amount of CDBG Funds Requested: $ 25 ,000.00 Where will the activity occur and what is the geographic scale of the proposed activity (community, city, region) be specific? _City of Lake Elsinore What Supenrisorial District does your activity occur within') Ci tY of Lake Elsinore 11. ORGANIZATIONAL HISTORY: (This is applicable only if you are a non -profit organization). Please provide a list of your current Board of Directors (Label as Attachment 11). Date Organization founded: 1888 Date Organization incorporated as a non- profit organization -ALA Number of volunteers N/A Number of paid staff N/A Federal identification number 95_6QQ0707 State identification numberZ�Q -02065 Attach:' ARTICLES OF INCORPORATION AND BY -LAWS (Label as Attachment IIA) 111. PROJECT ACTIVITY: (check the applicable category your application represents) Real Property Acquisition _ Public Service Housing Capital_ Equipment (Fixed) Rehabilitation/Preservation (please provide picture of structure) __X_ Public Facilities Improvements (construction) Other: (provide description) N"10# AGENDA ITEM NO. is 3 PAGE OF_ IV. PROJECT NARRATIVE: A. Name of Project: Specific Location of Project: Lake Elsinore (Include street address, if applicable) B. Provide a detailed description of the proposed project by describing precisely what will be accomplished with the requested funds. 1. Provide a detailed Project Description in quantifiable terms: (attach additional sheets if necessary) With CDBG Funding, the City of Lake Elsinore Code Enforcement Division will be able to continue its program of identifying Code Violations throughout the City and working with owners to bring their properties into compliance. This program focuses on abating substandard structures, abandoned vehicles, graffiti and other similar violations. This program has been successful in'the past, and through the support of CDBG Funding will be able to increase its effectiveness in Code Compliance. 2. What are the goals and. objectives of the project? The continued .support of the Code Enforcement Program will allow the City of Lake Elsinore to address and correct existing violations, as well as to prevent and eliminate blighted and unsafe structures.: throughout the City. The successful implementation of this program will result in improved neighborhood aesthetics and safety. 3. Discuss this project I s benefit to low- and moderate- income residents to be served by this project: The project's benefit to low and moderate income residents will be the elimination of blight in their neighborhoods, including the removal of dangerous-and unsightly structures, and accumulation of abandoned vehicles and debris. This benefits the: community by upgrading properties to compliance and current development codes, creating a safer and improved quality enviroment for the residents. 4. ff this is a public service: (A) Is this a NEW service provided by your agency? Yes_ No_. (B) if service is not new, how will the exsisiting public service activity level be substantially increased? Funding for this program will allow the City of Lake Elsinore Code Enforcement Division to maintain its current level of service, with some expansion of services by bringing in more resources to assist neighborhoods with improvements (towing of abandoned vehicles, trash removal containers, etc.) 4 AGENDA ITEM 1�v. ys PACT = _GF IV. PROJECT NARRATIVE (font.): 5. What methods will be used for community involvement to assure that all who might benefit from the project are provided an opportunity to participate? Not Applicable 6. What are the project's expected results? How many are expected to be served? Not Applicable 7. How wiQ you measure and evaluate how the.project meets its goals and objectives [measures should be both qualitative and quantiiativel? Not Applicable 8. What evidence is there of long -term commitment to the proposal? Describe how you plan to continue the work (project) after the grant ends? ' Not Appl-i cabl e 9. Attach maps of proposed project(s) location and service area. Please refer to the attached map. PACS L!4 f*��_ V. PROJECT BENEFIT: To be eligible for CDBG funding, a project must qualify within one of the three following categories. Indicate how the �tivity in this application meets one of the following categories of benefits_ indicate the source of the information provided. ovide information for the one category your application applies to.) CATEGORY 1. Benefit to low- moderate income persons (must be documented). Please iider identify ow C u have documented the persons served are low- moderate income persons b p 9 A Area Benefit: The project serves persons in the identified block groups in Census Tract which are 51 % or more low /moderate income. 2000 Census Data: Census Tract and block group numbers: CT 04znn BG 1, oft CT0430003 BG CTn43nnn4 BG CT 0430007 CT 0430 105) BG CT 0430008 CT0430o06 BG CT 0430009 # Total population in Census Tract(s) / block group(s) # Total low - moderate population in Census Tract(s) / block group(s) B. Limited Clientele: The project serves clientele that have documented their income. identify the procedure you Currently have in place to document that the clientele you serve are low - moderate income persons. C. Clientele presumed to be principally low- and moderate4ncome persons. The following groups are presumed by HUD to meet this criterion: Abused children, battered spouses, elderly persons, severely disabled adults, homeless persons, illiterate adults, persons living with AIDS; and migrant farm workers. Describe your clientele to be served by the activity. CATEGORY 2. Prevention or Elimination of Slums and Blight: Is the project located in a Redevelopment Area? Yes No. if yes, attach map of area. Additionally, provide the Redevelopment Project Area (excerpts. accepted) which documents the existence of slum/blight. Also document the specific redevelopment objectives pertaining to the proposed project. CATEGORY 3. Documented Health or Safety Condition of Particular Urgency: Condition shall have been of recent (18 months) origin. Provide documentation which demonstrates the health or safety condition has existed only within the previous 18 months. AGENDA ITEM 11W. Li _ 6 Pfi VI. FINANCIAL INFORMATION: A Complete the following annual budget to begin on July t, of this year. If these line items are not applicable to your activity, please attach an appropriate budget. Provide total Budget information and distribution of CDBG funds in, the proposed budget_ _ BUDGET SUMMARY TOTAL BUDGET (Include CDBG Funds) CDBG FUNDS REQUESTED 1. Personnel A Salaries & Wages $ 188,500. $ 14,750. B. Fringe Benefits $ 118 , 500. $ 10,250. C. Consultants & Contract Services $ 52.000. $ SUB TOTAL ll. Non- Personnel A Space Costs $ $ B. Rental, Lease or Purchase of Equipment $ 500. $. C. Consumable Supplies $1150- $ D. Travel E. Telephone $ $ F. Other Costs SUB TOTAL Ill. Architectural/Engineering Design $ IV. Acquisition of Real Property $ $ V. Construction/Rehabilitation $- $ TOTAL: $31L.0-00. B.. Identifyotherfunding sources; identify commitments or applications for funds from other sources to implement this activity. Attach Evidence of commitment. If commitments are pending, indicate amount requested and attach documentation regarding the previous year's funding. Fundinci Source Amount. Requested : Date Available Type of Commitment C.. Provide a summary byline item of your Agency, s previous year's income and expense statement: —►' AGENDA 11111 ;w- �J 7 PA �'LLY}F�� t benefits citizens of more than one community or local jurisdictions and /or municipalities, have requests been made to those other jurisdictions: Yes _ No _ If yes, identify sources and indicate outcome. If no, please explain: Not Applicable E. Was this project previously funded with CDBG funds? If yes, when? Is this activity a continuation of a previously funded (CDBG) project? (explain) Yes, in fiscal year 04/05 Code Enforcement Division was awarded $25,000 for abatement efforts. This request is not a continuation but a request for more funding to complete more abatement projects. VII. MANAGEMENT INFORMATION: (Provide this information by attachment if necessary.) A. Describe the organization responsible for managing and operating the project including: previous similar experience, list source, and commitment of funds for operation and maintenance. Identify project manager, or person in charge of the projects day - today operations. City of Lake Elsinore, under the supervision of Robin K Chipman, Building and Safety/Code Enforcement Manager. The City of Lake Elsinore has been responsible for CDBG funding for the past 30 years. The City has utilized CDBG funding for Senior Center improvements, ADA retrofit of playground equipment, construction of new ADA restrooms in parks as will as numerous social service programs including, most notably, our Senior Activity Center. -The City has renovated Community Centers as well as provide additional facilities .through the use of CDBG funding. The City's Community Services Department oversees the CDBG program and the City Engineer acts as the project manager for all projects. B. What is the role of your organization in the community? The City of Lake Elsinore is a general law City providing vital services to its citizens in the form of Police and Fire protection, Public Works, Parks and Open Space, Recreation and Tourism, Lake Operations, Planning, Engineering, Code Enforcement and Building Inspection, to name a few. C. Timetable for Project Implementation. Indicate primary project objectives: (You may attach a "time chart, if you wish). OBJECTIVE START DATE COMPLETION DATE Code Enforcement Program 07/01/05 06/30/06 PA 11�_OF O_ If you have never received CDBG funding from Riverside County, provide the following regarding any previous experience with other Federally funded programs. Source Activi Year Amt_ t Funds Received Funds Expended N/A Vill. CITIZEN PARTICIPATION: Every project proposal MUST contain evidence of citizen participation and support for the proposal. That evidence must include documentation of at least one community meeting this ey_ar at which the specific project was discussed and opportunity given for citizen input. Describe the methods used to obtain citizen involvement and attach appropriate documentation. Pursuant to the regulations governing the implementation of the CDBG Program, the City of Lake Elsinore has properly noticed in the Press Enterprise the City Council Meeting at which public testimony regarding the allocation of the 30th year CDBG funding would be taken. IX. PLANNING: Identify the most applicable adopted plans or strategies which the proposed project will help implement The Code Enforcement Program will help to implement the stated goals of the City of Lake Elsinore Nuisance Abatement Ordinance No. 844.adopted to enhance neighborhood safety, appearance and property values. PACE _JW OF APPLICATION CERTIFICATION Undersigned hereby certifies that: 1. The information contained in the project application is complete and accurate. 2. The applicant shalt comply with all Federal and County policies and requirements affecting the CDBG program. 3. The federal assistance made available through the CDBG program funding is not being utilized to substantially reduce the prior levels of local financial support for community development activities. 4. The applicant shall maintain and operate the facility for its approved use throughout its economic life_ 5. Sufficient funds are available to complete the project as described, if CDBG funds are approved. 6. 1 have obtained authorization to submit this application for CDBG funding. (DOCUMENTATION ATTACHED). Typetprint name and title Robin K. Chipman Of Authorized Representative Building & Safety /Code Enforcement ManaoPr signature of Authorized Representative DATE December 8, 2005 The following are attached to this application: Yes NO LX ] [ ] 1) Map of area served (] p(1 11) Management information 1 01 111) Organizational history (Non - Profits only) ] V ] A) Articles of Incorporation ] [X ] B) Current Board of Directors j ] 61 IV) income and Expense Statement S:ICO8GdCTZNPRTNQ006VPP"--d0C 10�. AGENDA ITEM N0. �J 10 M� ■ 1' ''ms`s e i r �:B Iazg- �� ,mow • ��� � �•���j ♦ 5 r i.° ,• _--- e Al ITZ m - CDBG APPLICATION &a] AGENDA ITEM NO ys PACE�,,�OF PROPOSAL NUMBER Date Received COUNTY OF RIVERSIDE _ COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM APPLICATION FORM GENERAL INFORMATION: Jame of Primary Activity Sponsor: Lake Elsinore Railing Address: 130 South Main Street Zip Code: 92530 elephone Number: (951) 674 -3134 Fax Number: (951) 471 -1419 :ontact Person: Robin K. Chipman Title: Building & Safety /Code Enforcement Manager 'rogram Manager: Robin K. Chipman Phone /Address: Same amount of CDBG Funds Requested: $75,000.00 Vhere will the activity occur and what is the geographic scale of the proposed activity (community, city, region) be specific? :ity of Lake Elsinore Vhat Supervisorial District does your activity occur within? City of Lake Elsinore I. ORGANIZATIONAL HISTORY: (This is applicable only if you are a non - profit organization). Please provide a list of your current Board of Directors (Label as Attachment It)_ Date Organization founded: 1888 Date. Organization incorporated as a non- profit organization: N/A Number of volunteers: N/A Number of paid staff: N/A Federal identification number: 95- 6000707 State identification number: 749 -02065 Attach: ARTICLES OF INCORPORATION AND BY -LAWS (Label as Attachment HA) I. PROJECT ACTIVITY: (check the applicable category your application represents) _ Real Property Acquisition _ Public Service _ Housing Capital Equipment (Fixed) —Rehabilitation/Preservation (please provide picture of structure) X Public Facilities Improvements (construction) Other: (provide description) 3 A(jhNUA rfEM NU. yJ_ PACE _14OF_& /_ PROJECT NARRATIVE: /^ Name of Project: Code Enforcement — Dangerous Structures Abatement Specific Location of Project: Cihr of Lake Elsinore (Include street address, if applicable) B. Provide a detailed description of the proposed project by describing precisely what will be accomplished with the requested funds. 1. Provide a detailed Project Description in quantifiable terms: (attach additional sheets if necessary) With CDBG Funding, the City of Lake Elsinore Code Enforcement Division will be able to continue its program of identifying Code Violations throughout the City and working with owners to bring their properties into compliance. This program focuses on abating substandard structures, abandoned vehicles, graffiti and other similar violations. 2. What are the goals and objectives of the project? The continued support of the Code Enforcement Program will allow the City of Lake Elsinore to address and correct existing violations, as well as to prevent and eliminate blighted and unsafe structures throughout the City. The successful implementation of this program will result in improved neighborhood aesthetics and safety. 3. Discuss this project's benefit to low- and moderate- income residents to be served by this project: The project's benefit to low and moderate income residents will be the elimination of blight in their neighborhoods, including the removal of dangerous and unsightly-structures and accumulation of abandoned vehicles and debris. This benefits the community by upgrading properties to compliance and current development codes, creating a safer and improved quality environment for the residents. 4. If this is a public service: (A) Is this a NEW service provided by your agency? Yes_ No_ (B) If service is not new., how will the existing public service activity level be substantially increased? Funding for this program will allow the City of Lake Elsinore Code Enforcement Division to maintain its current level of service, with some expansion of services by bringing in more resources to assist neighborhoods with improvements (towing of abandoned vehicles, trash removal containers, etc.) 4 AGENDA I'SLi PACE IV. PROJECT NARRATIVE (Cont): 5. What methods will be used for community involvement to assure that all who might benefit from the project are provided a opportunity to participate? . ater Not Applicable 6. What are the projects expected results? How many are expected to be served? Not Applicable 7. How will you measure and evaluate how the project meets its goals and objectives (measures should be both qualitative and quantitative)? Not Applicable 8. What evidence is there of long -term commitment to the proposal? Describe how you plan to continue the work (project) N"Woe after the grant ends? Not Applicable 9. Attach maps of proposed project(s) location and service area. Please refer to attached map. 5 PACE V. PROJECT BENEFIT: To be eligible for CDBG funding, a project must qualify within one of the three following categories. Indicate how the activity in this application meets one of the following categories of benefits. Indicate the source of the information provided. (Provide information for the one` egory your application applies to.) CATEGORY 1, Benefit to low- moderate income persons (must be documented). Please identify how you have documented the persons served are low- moderate income persons by providing information in either A, B, or C. A. Area Benefit: The project serves persons in the identified block groups in Census Tract which are 51 % or more low /moderate income. 2000 Census Data: Census Tract and block group numbers: CT 0430001 BG CT 0430004 BG CT 0430007 CT 0430002 BG CT 0430005 BG CT 0430008 CT 0430003 BG CT 0430006 BG CT 0430009 # Total population in Census Tract(s) / block group(s) # Total low- moderate population in Census Tract(s) / block group(s) B. Limited Clientele: The project serves clientele that have documented their income. Identify the procedure you currently have in place to document that the clientele you serve are low- moderate income persons. C. Clientele presumed to be principally low- and moderate - income persons. The following groups are presumed by HUD to meet this criterion: Abused children, battered spouses, elderly persons, severely disabled adults, homeless persons, illiterate adults; person's living with AIDS, and migrant farm workers. Describe your clientele to be served by the activity. 'ATEGORY 2. Prevention or Elimination of Slums and Blight: s the project located in a Redevelopment Area? XYes No. If yes, attach map of area. Additionally, provide the Redevelopment Iroject Area (excerpts accepted) which documents the existence of slum /blight. Also document the specific redevelopment objectives )ertaining to the proposed project. :ATEGORY 3. Documented Health or Safety Condition of Particular Urgency: ;ondition shall have been of recent (18 months) origin. Provide documentation which demonstrates the health or safety condition has !xisted only within the previous 18 months. s � AGENDA ffLty� env. VI. FINANCIAL INFORMATION: A. Complete the following annual budget to begin on July 1, of this year. If these line items are not applicable to your activity, please attach an appropriate budget. Provide total Budget information and distribution of CDBG funds in the Proposed budget. TOTAL BUDGET CDBG FUNDS S-0101 BUDGET SUMMARY (Include COBG Funds) REQUESTED 1. Personnel A. Salaries & Wages $ $ B. Fringe Benefits $ $ C. Consultants & Contract Services $ $ SUB TOTAL $ $ 11. Non- Personnel A. Space Costs B. Rental, Lease or Purchase of Equipment C. Consumable Supplies D. Travel E. Telephone F. Other Costs SUB TOTAL Ill. Architectural/Engineering Design IV. Acquisition of Real Property V. Construction/Rehabilitation TOTAL: $ $ $ 75.000 $ 000 _Mwoe B. Identify other funding sources; identify commitments or applications for funds from other sources to implement this activity. Attach evidence of commitment. If commitments are pending, indicate amount requested and attach documentation regarding the previous year's funding. Fundina Source Amount Requested Date Available Type of Commitment C. Provide a summary byline item of your Agency, s previous year's income and expense statement: AQ1: NdiA l tsao or... /Y PA _1 ®F.� ,.. D. if this project benefits citizens of more than one community or local jurisdictions and /or municipalities, have requests been made to those other jurisdictions: Yes _ No _ If yes, identify sources and indicate outcome. If no, please explain: Not Applicable E. Was this project previously funded with CDBG funds? If yes, when? Is this activity a continuation of a previously funded (CDBG) project? (explain) Yes, in fiscal year 04105 Code Enforcement Division was awarded $50,000 for abatement efforts. This request is not a continuation but a request for more funding to complete more abatement projects. VII. MANAGEMENT INFORMATION: (Provide this information by attachment if necessary.) A. Describe the organization responsible for managing and operating the project including: previous similar experience, list source, and commitment of funds for operation and maintenance. Identify project manager, or person in charge of the project's day - to-day operations. City of Lake Elsinore, under the supervision of Robin K. Chipman, Building and Safety/Code Enforcement Manager. The City of Lake Elsinore has been responsible for CDBG funding for the past 30 years. The City has utilized CDBG funding for Senior Center improvements, ADA retrofit of playground equipment, construction of new ADA restrooms in parks as will as numerous social service programs including, most notably, our Senior Activity Center. The City has renovated Community Centers as well as provides additional facilities through the use of CDBG funding. The City's Community Services Department oversees the CDBG program and the City Engineer acts as the project manager for all projects. B. What is the role of your organization in the community? The City of Lake Elsinore is a general law City providing vital services to its citizens in the form of Police and Fire protection, Public Works, Parks and Open. Space, Recreation and Tourism, Lake Operations, Planning, Engineering, Code Enforcement and Building Inspection, to name a few. C. Timetable for Project Implementation. Indicate primary project objectives: (You may attach a time chart, if you wish). OBJECTIVE START DATE COMPLETION DATE Code Enforcement Program 07/01/05 06/30/06 8� ACst:tuVA t ! tivs k—. PACE J D. If you have never received CDBG funding from Riverside County, provide the following regarding any previous experience with other Federally funded programs. Source Activity Funds Received Amt. Funds Expended Not Applicable VIII. CITIZEN PARTICIPATION: Every project proposal MUST contain evidence of citizen participation and support for the proposal. That evidence must include documentation of at least one community meeting this year at which the specific project was discussed and opportunity given for citizen input. Describe the methods used to obtain citizen involvement and attach appropriate documentation. Pursuant to the regulations governing the implementation of the CDBG Program, the City of Lake Elsinore has properly noticed in the Press Enterprise the City Council Meeting at which public testimony regarding the allocation of the 30'h year CDBG Funding would be taken. C PLANNING: Identify the most applicable adopted plans or strategies which the proposed project will help implement: The Code Enforcement Program will help to implement the stated goals of the City of Lake Elsinore Nuisance Abatement Ordinance No. 844 adopted to enhance neighborhood safety, appearance and property values. 9 L/ b-- AGIaNU A I i k;6vi APPLICATION CERTIFICATION Undersigned hereby certifies that: 1. The information contained in the project application is complete and accurate. 2. The applicant shall comply with all Federal and County policies and requirements affecting the CDBG program_ 3. The federal assistance made available through the CDBG program funding is not being utilized to substantially reduce the prior levels of local financial support for community development activities. 4. The applicant shall maintain and operate the facility for its approved use throughout its economic life. 5. Sufficient funds are available to complete the project as described, if CDBG funds. are approved. 6. 1 have obtained authorization to submit this application for CDBG funding. (DOCUMENTATION ATTACHED). Typetprint name and title Robin K. Chipman of Authorized Representative Buildin4 &Safety /Code Enforcement Manager— Signature of Authorized Representative�'� DATE December 8, 2005 The following are attached to this application: Yes NO ] { ] 1) Map of area served 11) Management information [ ] {X] 111) Organizational history (Non- Profits only) { {XI A) Articles of Incorporation i� {X1 B) Current Board of Directors {) [XI IV) Income and Expense Statement s:,,CUBGcTZt*Wt4%2006Vwakc*«n -(Ioc AGENDA ITEM No._ 10 PACe IU_ -"F CDBG APPLICATION #10 AGENDA ITEM NO. �cS PACT 1 Q'� OF �1� PROPOSAL NUMBER j Date Received CITY of LAKE ELSINORE COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM APPLICATION FORM 0 1. GENERAL INFORMATION. O � U Name of Primary Activity Sponsor: Alternatives to Domestic Violence (AM Mailing Address: P.O. Box 910 Riverside Zip Code 92502 Address (If different from above): 4351 Latham SL Ste 202, Riverside, CA 92501 Telephone Number:( 951 320- 1370 Contact Person: Eliza Daniely Woolfolk Title: Executive Director Amount of CDBG Funds Requested: $ 15.360 Where will the activity occur and what is the geographic scale of the proposed activity (community, city, region) be Specific? ADV provides services county -wide – funds requested will benefit communities primarily in Westerr Riverside County, including the City of Lake Elsinore What Supervisorial District does your activity occur within? Services available to all Riverside County Supervisorial Districts 11: ORGANIZATIONAL HISTORY: (This is applicable only if you are a non- profit organization). Please - - provide a list of your current Board of Directors. (Label as Attachment 11). Date Organization founded: Date Organization incorporat( Number of volunteers Number of paid staff Federal identification number_ State identification number 1977 A as a non - profit organization: 1977 60 43 95- 3212844 D-0840332 Attach: ARTICLES OF INCORPORATION AND BY -LAWS (Label as Attachment IIA) III. PROJECT ACTIVITY: (check the applicable category your application represents) Real Property Acquisition X Public Service _ Housing _ Capital Equipment (fixed) — Rehabilitation /Preservation (please provide picture of structure) Public Facilities Improvements (construction) —Planning/Studies Other. (provide description) ,AGENDA ITEM NO. 41,5– PACE Igq- OF 3/q- „, JV. PROJECT NARRATIVE: A. Name of Project: Services to Victims and Children of Domestic Violence Specific Location of Project: Shelter address remains undisclosed for client protection (Include street address, if applicable) B. Provide a detailed description of the proposed project by describing precisely what is to be accomplished with the requested funds. 1. Provide a detailed Project Description in quantifiable terms: (attach additional sheets if necessary) ADV requests CDBG funding to respond to the increasing levels of domestic violence which impact Riverside County residents. ADV has been providing services for domestic violence victims since 1978. A rapidly growing population and increased demand for services has created a need for additional services — particularly emergency shelter. ADV consistently receives an average of more than 100 requests for shelter monthly. To meet this increased demand, ADV raised $2.5 million to build a new state -of -the -art 60 -bed emergency shelter and residential facility for domestic violence victims throughout Riverside County. Casa de Paz opened its doors in March, 2005. Additional funding is needed to increase the staff ratios needed to fill Casa de Paz to its 60 -bed capacity and assist with the costs of operating this larger facility. ADV will provide comprehensive services for domestic violence victims and their children who reside in Riverside County (with an emphasis and primary focus in Districts 1, 2, 3 and 5) that include the following: • Responding to at least 8,000 calls on the 24 Hour Crisis Line (toll -free, countywide), providing crisis intervention counseling, information and referrals; • Providing emergency shelter to approximately 60 battered women and 125 children through Horizon House, for a /-` total of 3,600 bednights. These figures have increased due to the opening of Casa de Paz, ADV's new 60 -bed emergency shelter and residential facility which opened in March, 2005); • Providing a minimum of 800 new and 1,700 continuing clients of ADV with advocacy services, including individual counseling, support groups, emergency food and clothing, assistance with temporary restraining orders, court accompaniment and emergency transportation through ADV's regional outreach offices and extended service sites; • Providing services to 200 new and 550 continuing children clients who live in violent homes, such as advocacy and - individual -and- group- counseling; - - • Providing domestic violence awareness in- service trainings and presentations to taw enforcement, legal professionals, medical personnel, social service providers, clergy, school personnel and employers throughout Western Riverside County. Domestic violence affects every cultural, ethnic, gender and socio-economic class, and is major cause of emotional and physical injury. Without intervention, domestic violence not only continues, but escalates in frequency and lethality. Nearly half of all children whose mothers are being abused are also being physically or sexually abused. Children are often the "silent victims” of domestic violence where growing up in a violent -ridden home often results in violent and aggressive behavior that continues the cycle of violence and abuse in their adult lives. In 2003, the Department of Justice (DOJ) reported 7,863 domestic violence - related calls for assistance in Riverside County. This indicates a 14 percent increase during the past five years. The DOJ also reported 2,494 arrests for spousal abuse. Based on these figures, it is critical th at victims and their children are given access to emergency shelter that is safe and resources that will assist them in maintaining their safety. Domestic violence victims and their children are threatened economically as well. The County of Riverside's 2004 -2005 Homeless Assessment found that "almost two- thirds of homeless women (67.1°/x) in Riverside County on any given day ,.have experienced domestic violence in their lives." In addition, the survey found that "almost half (47.1 %) of the women ho reported experiencing domestic violence identified (it) as a contributing factor to their homeless situation." This very real fear of becoming homeless often keeps a victim from seeking help. 2. What are the goals and objectives of the project? 2 AULIVDA ITEM acv. ytJ PAGE Al_ -OF 14- • To provide victims of domestic violence with alternative ways of dealing with physical and/or emotional abuse through education, counseling, shelter, non judgmental emotional support, legal advocacy, and transitional housing assistance; • To increase community awareness of the problem; • To serve as an advocate on behalf of all victims of domestic violence; `• • To find ways and means to decrease the frequency, magnitude and recurrence of domestic violence; and • To break the generational cycle of domestic violence and victimization ADV identifies regional service needs based on service statistics from the most recent fiscal year. Last year, ADV served residents of the City of Lake Elsinore with: 219 Crisis Line Calls; and 84 clients with 247 units of advocacy and counseling services that included: advocacy, referrals, individual and group counseling and assistance with restraining orders and court accompaniment. This year, ADV has joined the Riverside County Sheriffs Department in Lake Elsinore to participate in the DVERT (Domestic Violence Emergency Response Team). The multidisciplinary team is made up of local law enforcement, service providers, the county's Child Protective Services, therapists and other agencies that provide crisis intervention and on -going treatment and services for families impacted by domestic violence. The team meets twice a month to develop case plans for families identified by law enforcement based on calls for service. 3. Discuss this proiect's benefit to low- and moderate - income residents served by this project. All of ADV's services to victims and their children are provided free of charge and no client is refused services based on income. Approximately 90% of women and children sheltered last year were classified as low - income. Other specific benefits to low- income clients include advocacy, including assistance in accessing community and social services resources relating to subsidized housing, food, social services, and legal assistance, and legal advocacy that includes assistance with Temporary Restraining Orders and accompaniment to court. In addition to providing-help to those in immediate crisis, ADV's early intervention, primary prevention and education services have long -term benefit to both clients and the larger community by reducing the costs of reduced employment productivity, increased demands on law enforcement, the courts, the medical and welfare systems, and lost educational potential for children affected. ADV also benefits the community by reducing recidivism rates of family violence, saving thousands of dollars in law enforcement and medical costs. 4. If this is a public service activity: (A) Is this a NEW service provided by your agency? Yes_ No X (B) If service is not new, will the proposed activity substantially increase the existing level of service ?` Explain how the service will be substantially increased. (attach additional sheets if necessary) The completion of Casa de Paz, ADV's newly constructed 604bed residential facility, will significantly increase the existing level of shelter services for victims of domestic violence and their children. It is anticipated that services will increase by up to 300% for domestic violence victims and their children during the 2006 -2007 fiscal year. Casa de Paz is the only domestic violence shelter in western Riverside County. It replaces Horizon House, a 15 -bed shelter operated by ADV since the agency incorporated in 1978. IV. PROJECT NARRATIVE (Cont.): 5. What methods will be used for community involvement to assure that all who might benefit from the project are provided an opportunity to participate? Community Involvement in the activities and policies of ADV is conducted throughout the county on an annual basis. Recognizing the unique characteristics and needs of each region of the county, ADV has several regional Advisory Committees that are composed of local community leaders, elected officials, concerned citizens and professionals, who meet on a monthly basis to discuss project goals, accomplishments, problem areas, and funding sources. Additionally, ADV participates extensively in local community and inter- agency forums and is a key partner in the Riverside County District Attorney's efforts to create three Family Justice Centers throughout Riverside County. ADV is mandated by each of its funding agencies to provide community outreach to underserved populations to increase awareness and access to its services. 6. What are the project's expected results? How many are expected to be served? In addition to providing immediate benefit to those in immediate crisis, ADV's early intervention, primary prevention and education services have long -term benefit to both clients and the larger community by reducing the costs of reduced employment productivity, increased demands on law enforcement, the courts, the medical and welfare systems, and lost educational potential for children affected. ADV also benefits the community by reducing recidivism rates of family violence, saving thousands of dollars in law enforcement and medical costs. Last year, ADV provided 9,243 Crisis Line Calls; 30 women and 50 children with 1,973 bednights of emergency shelter, 2,859 women and 811 children with outreach and counseling services; and 119 community education presentations reaching 2,256 people. With the opening of Casa de Paz in 2005, the number of shelter services are expected to increase during the next year by about 300 1/16. ADV anticipates providing 60 women and 125 children with 3,600 bednights during the 2006/2007 Fiscal Year. How will you measure and evaluate how the project meets its goals and objectives (measures should be both qualitative and quantitative)? ADV has consistently maintained an excellent reputation in Riverside County and throughout the State of California for both its program quality and management accountability to funding sources. Evaluation of ADV programs and services is conducted through a monitoring system; which includes objective and subjective measurement of program data and service - quality using the following: • Confidential client evaluations and exit interviews • Chart review • Analysis of program statistics The agency's Management Team, Program Committee, and Board of Directors review this data. Several outside funding sources also conduct program monitoring and audits through funding provided by the Department of Health Services, Matemal Child Health, the Office of Emergency Services, The Riverside County Department of Public Social Services and several United Ways. ADV regularly undergoes several formal evaluations of programs, services and fiscal management. ADV has also contracted with Loma Linda University to continue an evaluation to detenmine the effectiveness of the services clients receive at ADV Outreach sites, and to identify predictors of self - sufficiency. Outcome results of this three - year evaluation were first produced in 2004, and will continue to provide valuable information regarding the long -term impact of domestic violence intervention services. 4 A;jLNt,;F,A► IThM NU. 7J PACE OF_4_ 8. What evidence is there of long -term commitment to the proposal? Describe how you plan to continue the work (project) after the grant ends? ADV has been providing services since 1978, and continues to expand the scope and levels of services through the c going identification and solicitation of federal, state, and local government sources. The agency also solicits private foundations and corporate giving programs to ensure that existing and new programs are available to respond to current and emerging needs related to domestic and family violence. Many of the funding sources identified in the budget have supported the agencies programs and services on a continuous basis, based on the excellence of services provided by the agency. 9. Attach maps of proposed project's location and service area. (See Attachments for service area map - Western Riverside County) MENDA ITEM NO. s - PACE OF V. PROJECT BENEFIT: A*0_� To be eligible for CDBG funding, a project must qualify within one of the three following categories. Indicate how the ctivity in this application meets one of the following categories of benefits_ Indicate the source of the information provided_ (Provide information for the one category your application applies to.) CATEGORY 1. Benefit to low- moderate income persons must be documented. Please identify how you have documented that persons served are low- moderate income persons by providing information in either A, B, or C. A. Area Benefit: The project serves persons in the identified block groups in Census Tract which are 51% or more low /moderate income. 1990 Census Data: Census Tract and block group numbers: CT BG CT BG CT BG CT BG CT BG CT BG # Total population in Census Tract (s) / block group(s) # Total low- moderate population in Census Tract (s) / block group(s) B. Limited Clientele: The project serves clientele that have documented their income. Identify the procedure you currently have in place to document that the clientele you serve are low- moderate income persons. ADV clients are asked to complete an intake packet which asks them to state their income. This information is reported in monthly, quarterly and semi- annual reports to funders. C. Clientele presumed to be principally low- and moderate income persons. The following groups are presumed by HUD to meet this criterion: Abused children, battered spouses,-elderly - - persons, handicapped persons, homeless persons, illiterate and migrant farm workers. Describe your clientele to be served by the activity: Domestic Violence victims in need of housing and subsistence assistance are considered "presumed benefit" low income according to HLTD criteria due to the emergency nature of their need. ADV does, however, request income information upon intake and requests that clients sign a waiver form for the legal consequences of receiving our services which does include a justification for requesting income information. Approximately 90% of women and children sheltered by ADV last year qualified as low- income. CATEGORY 2. Prevention or Elimination of Slums or Blight: Is the project located in a Redevelopment Area? Yes No. If yes, attach map of area and project area number. Additionally, provide the Redevelopment Project Area (excerpts accepted) which documents existence of slum/blight condition and also document the specific redevelopment objectives_ CATEGORY 3. Documented Health or Safety Condition of Particular Urgency: Condition shall have been of recent (18 months) origin. Provide documentation which demonstrates the health or safety "ndition has existed only within the previous 18 months. ACaIzNDA ITE40 NO. y� P — . FINANCIAL INFORMATION A Complete the following annual budget to begin on July 1, of this year. If these line items are not applicable to your activity, please attach an appropriate budget. Provide total Budget information and distribution of CDBG funds in the Proposed budget BUDGET SUMMARY Personnel A. Salaries 8 Wages B: Fringe Benefits C. Consultants & Contract Services SUB -TOTAL TOTAL BUDGET (Include CDBG Funds) $_923,.430 $ 230,858 $ 80,454 $1,234,742 II. Non - Personnel Amount Requested Office of Emergency Services A. Space Costs $ 252,255 B. Rental, Lease or Purchase of $200,870 Maternal Child Health Equipment $ 31.495 C. Consumable Supplies $ 54,178 D. Travel $--19.229- E. Telephone $_ 35,193 F. Other Costs * $ 84,693 SUB -TOTAL $ 422.865 Other costs- specific assistance to individuals, public relations and administration Ill. ArchitecturaUEngineering Design $ IV. Acquisition of Real Property $ V. Construction /Rehabilitation $ TOTAL: $ 1,657,607 CDBG FUNDS REQUESTED $ 12,000 $ 3,360 $__15.360 $ $ $ $ $ 15,360 B. Identify other funding sources; identify Commitments or applications for funds from other sources to implement this activity. Attach evidence of commitment. ** Funding Source ' Amount Requested Office of Emergency Services (formerly Office of Criminal Justice Planning) $200,870 Maternal Child Health $220,000 Local Cities ! County - CDBG $132,711 Domestic Violence Trust Funds $110,000 United Ways $115,549 EHAP /ESGIFEMA $ 90,175 Riverside County, Misc. $570,642 (DPSS, Anger Management, CART, General Fund) Other Funding sources $313,360 (foundation funding, donations, special events) Date Available Type of Commitment 7/1/06-6/30/07 7/1/06- 6/30/07 7/1/06- 6/30/07 7/1/06- 6/30/07 7/1106 - 6/30/07 7/1/06 -6 /30/07 7/1/06-6/30107 On -going Application Award until 2010 On -going Applications On -going Allocation On -going Allocation On -going Applications On -going 7/1/06 -6130/07 On- going; pending " Note: These funding sources have not concluded their 06/07 application process. Figures are based on current award amounts C. Provide a summary by line item of your Agency's previous year's income and expense statement See attached Income and Expense Statement from agency audit for previous year. 11"o 7 & ,(._,k iDA ITEM U0. t�Jr i PACE 0 D. If this project benefits citizens of more than one community or local jurisdictions and /or municipalities, have requests been made to those other jurisdictions: Yes X No If yes, identify sources and indicate outcome If no, please explain - ADV requests approximately 13% of the total agency budget from other municipalities throughout the County (seven cities and County of Riverside). A formula is used to determine the amount of the request based on each jurisdiction's population, prior history of support, available funds, and application guidelines /restrictions. E. Was this project previously funded with CDBG funds? If yes, when? Is this activity a continuation of a previously funded (CDBG) project? (explain) ADV first received CDBG funding in FY 86187 from one city. Since then it has received CDBG funding from up to seven cities, and general fund allocations from up to four cities that do not participate in the CDBG program. CDBG funding from the County of Riverside for the unincorporated areas of the five supervisorial districts has also been received in the past. VII. MANAGEMENT INFORMATION: (PROVIDE THIS INFORMATION BY ATTACHMENT). A. Describe the organization responsible for managing and operating the project, including: previous similar experience, list source, and commitment of funds for operation and maintenance. Identify project manager, or person in charge of the project's day -to-day operations. Organization Description & Source of Funds - See Attachment VIIA Project Manager - Eliza Daniely Woolfolk Executive Director (951) 320 -1370 B.. What is the role of your organization in the community? See Attachment VIIA C. Timetable for Project Implementation. Indicate primary project objectives: (You -may attach a time chart; if- you wish). OBJECTIVE START DATE COMPLETION DATE ADV provides services (Shelter, Outreach, Children's Program, Community Education) on an on -going basis throughout the year. The services and objectives detailed on page 2 will be accomplished during the period 7/1/06 through 6/30/07. In addition, ADV expanded its shelter services in March, 2005 when it opened Casa de Paz, a newly - constructed 60 -bed residential facility. ArjE1JDA ITEM N(). C/iS ``� PAS o Dr l,_ . _. D. If you have never received CDBG funding from Riverside County, provide evidence of any previous experience with other Federally funded programs. Source Activity Year Amt. Funds Received Funds Expended Not Applicable VIII. CITIZEN PARTICIPATION: Every project proposal MUST contain evidence of citizen participation and support for the proposal. That evidence must include documentation of at least one community meeting this year at which the speck project was discussed and opportunity given for citizen input- Describe the methods used to obtain citizen involvement and attach appropriate documentation. Citizen participation and involvement in the activities and policies of ADV is conducted throughout the county on an annual basis. Recognizing the unique characteristics and needs of each region of the county, ADV has several regional Advisory Committees that are composed of local community leaders, elected officials and concerned citizens and professionals who meet on a monthly basis to discuss project goals, accomplishments, problem areas, and funding sources. ADV is mandated by each of its funding agencies to provide community outreach to underserved populations to increase awareness and access to its services. The submission of CDBG proposals to the County and other cities was discussed at each of the Regional Advisory Committee meetings, and approved by the ADV Board of Directors_ Minutes from the Southwest ADVisory are included in the attachments (Attachment VIII). IX. PLANNING: Identify the most applicable adopted plans or strategies which the proposed project will help implement: With the help of a consulting team with expertise in planning, ADV's Board of Directors has developed a Strategic Plate in March of 2003 to formalize a practical vision for the next three to five years. The agency identified major underlying contradictions currently blocking the vision, and formulated strategic directions around which to mobilize action for the next two to three years. A one -year implementation plan was also developed in the areas of: • Building support for Domestic Violence Issues • Ensurin - financial stabile g _- of the' agency - • Enhancing agency internal capacity The ADV Board of Directors and Management staff have reviewed and evaluated this plan on an annual basis since it was developed in 2003. Each year, the plan is reviewed to ensure that agency stakeholders are carrying out the plan and vision. CENDA ITEM NO. Ll PA o�"c?�1 OF_ APPLICATION CERTIFICATION Undersigned hereby certifies that: 1. The information contained in the project application is complete and accurate. 2. The applicant shall comply with all Federal and County policies and requirements affecting the CDBG program. 3. The federal assistance made available through the CDBG program funding is not being utilized to substantially reduce the prior levels of local financial support for community development activities. 4. The applicant shall maintain and operate the facility for its approved use throughout its economic life. 5. Sufficient funds are available to complete the project as described; if CDBG funds are approved. 6. 1 have obtained authorization to submit this application for CDBG funding_ (DOCUMENTATION ATTACHED). Typelprint name and title of Authorized Representative Eliza Daniely- Woolfolk Executive Director ,ignature of Authorized Representative Date' 12/1/2005 V The following are attached to this application: Yes No ❑ 1) Map of area served ❑ II) Management information M ❑ 111) Organizational history (Non - Profits only) A) Articles of Incorporation B) Current Board of Directors Q ❑ IV) Income and Expense Statement 10 MENDA ITEM NO. y J PA _�_Or = 314— i AUV Aftemiwes !e uom¢`tic viotence ASA DE PAZ Residential Shelter 24 -hour Crisis Line local and Out of County 951.683.0829 �mainder of Riverside County 800.339.SAFE Board of Directors Marcia McQueru, President Teresa Ph-me. Pees Elect Lina Soccio, Secretary Peg Moore, Treasurer Sheila Clark Jerry Fineman Capt. Peter La Balm ChiefMichael Lane Arras Macias Rev. Janet R_ Westall Executive Director Eliza Daniely-Woolfolk ADVisorV Council Zelma Beard Kay Ceniceros Bob Doyle, Sheriff Dr. Richard Giese Term Gilmore Chief Richard O_ Gonzales Debbie Huffman Guthrie Joan Sparkman Grover Trask Candace Hunter Wiest Peggy Fouke Wertz �' A btit_ ay ;'.timber Age y ALTERNATIVES TO DOMESTIC VIOLENCE BOARD OF DIRECTOR'S RESOLUTION WHEREAS: The cities of Banning, Corona, Hemet, San Jacinto, Moreno Valley, Murrieta, Temecula, Riverside and the County of Riverside are issuing RFP's for Community Development Block Grants (CDBG) and Alternatives to Domestic Violence is a nonprofit corporation which is eligible under the guidelines and wishes to apply for and receive funding: NOW THEREFOR BE IT RESOVED THAT: The Board of Directors of Alternatives to Domestic Violence hereby authorizes Eliza Daniely- Woolfolk, ADV Executive Director, to apply for CDBG grants in the amount deemed appropriate within RFP, and in accordance with the program statute, regulations, and standards of agreement. If the grant application is approved, Alternatives to Domestic Violence agrees to use CDBG funds in the manner presented in the application, as approved by the cities noted and the County of Riverside. Further, Eliza. Daniely-Woolfoll: is authorized -by this resolution to sign the Standards of Agreement or Contracts related to the purpose of the grant. Passed and Adopted at a regular meeting of Alternatives to Domestic Violence. November 2005 Ayes: (r, Noes: Board Attest: Absent: Ik V Board Secretary) Riverside Administrative Offlces/Program Services: P.O. Box 910 - Riverside, CA 92502.951320.1370 - FAX 951.320.1381 - recadv(alurs2.net Corona Family Violence Prevention Coalition/Outreach Site: 515 So. Corona Mall - Corona, CA 92879 - 951.737.8410 - 951,737.3517 Temecula Outreach Site: 42145 Lyndie Lane, Suite 100 - Temecula, CA 92591 - 951.506.2552 - FAX 951.506.2812 Hemet Outreach Site: P.O. Box 910 - Riverside; CA 921502 - 951.320.1374 - FAX 9151.320.1381 Berne ber tAfienwtfves to `14xien.;r. in your uif. . . MUM ITEM W.- Lim Pam aF 3t4= ATTACHMENTS (\ �� .- { I« .} -C M // }£|!$ � , -A }!' °k ,■| ; ■! #! ■j #K!■ | K §§k! ( \ | ' )!!-N-Z f it , _! «i 'IM ® � fill i l �� � a | i ■�, e \ � 4 $ 0 U 0 2 7 0 CD 0 0 En § £. \ \. 0 R U � 0 � AGENDA RE NO L�A- . � � ALTERNATIVES TO DOMESTIC VIOLENCE MANAGEMENT INFORMATION - ATTACHMENT VII A. Alternatives to Domestic Violence (ADV) is a private, non - profit organization serving families and victims of domestic violence in Riverside County. The agency was founded in 1978 by a Task Force formed at the request of the Riverside County Mental Health Advisory Board to determine the scope of services available in Riverside County to combat domestic violence. Finding services sorely lacking, the Task Force incorporated and founded Horizon House, the first Riverside county shelter for battered women and their children. Horizon House was selected as one of six pilot projects funded by the State of California, and became fully operational in 1978. Over the years, a service continuum ranging from prevention, early intervention, to crisis intervention has reached thousands of victims and their children, responding to the need for eliminating domestic violence and empowering victims. Alternatives to Domestic Violence continues to be recognized statewide as a leader in progressive approaches to empowerment and advocacy for clients seeking to establish a healthy, violence -free environment in which to raise the next generation. In March, 2005, ADV reached a major milestone when it opened Casa de Paz (which means "House of Peace" in Spanish) a newly- constructed 17,000 square foot residential facility that can accommodate up to 60 people. Casa de Paz, built in a confidential location in Southwestern Riverside County, has expanded ADV's emergency and transitional shelter capacity by up to 300•/6 for victims of domestic violence and their children in Riverside County. In addition, families taking refuge from violence at Casa de Paz will also be provided the resources and tools needed to rebuild their lives and move toward self - sufficiency. A Training Center complete with 12 new computer stations – is available for women to learn or improve their computer skills, write a resume, or gain job knowledge. Casa de Paz also has a state - licensed child care center that is fully equipped with age- appropriate curricula, equipment, play stations and learning materials for children. ,—,ADV is committed to breaking the cycle of violence by offering community education/prevention, early intervention, 24- .our crisis intervention, and follow -up services to victims, their families, and concerned citizens throughout Riverside County. This mission is accomplished through the provision of services that include: • Casa de Paz (60 bed emergency shelter and residential facility) • 24 hour Toll -Free Crisis Line • Specialized Children's Program • Community Outreach Program that includes legal advocacy, paraprofessional counseling,: information . and referrals_ and life skills training. • Interagency Collaborative Agreements and Protocols • Volunteer Program • Community Education Program • Training for professionals in law enforcement, judicial and medical systems, clergy, social services and the business sector. The Board of Directors of Alternatives to Domestic Violence sets annual goals and objectives for the organization, which currently include: a. Providing victims of domestic violence with alternative ways of dealing with physical and/or emotional abuse through education, counseling, shelter, non judgmental emotional support, and legal advocacy b. Increasing community awareness of the problem; c. Serving as an advocate on behalf of all victims of domestic violence; d. Finding the ways and means to decrease the frequency, magnitude and recurrence of domestic violence; and e. Breaking the generational cycle of domestic violence and victimization ,-- 4,DV operates on a budget of $1,657,607 from the following sources: 61%- Local Government -City and County CDBG, Redevelopment and General Fund, Domestic Violence Trust Funds, Riverside County Schools, Emergency Shelter Grants. l I AGENDA iTEPA 110. L/ /3, PACE- a0 Y% BF. _ 4 31%- State/Federal Government —Office of Emergency Services (formerly the Office of Criminal Justice Planning), Department of Health Services, Maternal Child Health Branch. 8% - Private & Fund Development - Private foundations, corporations, individual and business support, special events and product sales, United Ways - (Inland Valleys, Corona/Norco, Hemet/San—Jacinto)— The Professional Staff includes a full -time Executive Director who is responsible for the agency's day - today operations, accountability to the Board of Directors, and is responsible for the administration and effective management of fiscal and programmatic components of agency operations. The direct supervision of management staff, financial development, public relations and networking are also areas of key responsibility for this position. The Executive Director works with a Management Team which consists of Direct Services Director: Responsible for Outreach services and Counselors /Client Advocates, Children's Program and Legal Advocacy and the Domestic Abuse Intervention Program for Eligible CalWorks Clients and Child Abuse Prevention, Intervention and Treatment programs. Shelter Director: Oversees Casa de Paz, including its Children's Program, Crisis Line staff and volunteers. Support Services: Office Manager, Accountant, Data Coordinator, Clerical assistance and support of operations, (accounting, statistics, grant writing, special events, and fund raising) Program Manager: Oversees family violence prevention initiative in the Cities of Corona and Norco Corona Family Violence and ADV's Anger Management Program for abusers who are referred by Child Prevention Program Protective Services and the court system. Community Education/ Responsible for coordinating and implementing the agency's community Volunteer Coordinator education and training programs and for volunteer recruitment and retention. ` %we The Board of Directors and three Regional Advisory Committees (Southwest, Corona/Norco and Mid - County) are responsible for policy, planning and evaluation of the agency, including supervision of the Executive Director. Evaluation of ADV programs and services is conducted through a monitoring system which includes objective and subjective measurement of program data and service quality, including: • Confidential client evaluations and exit interviews • Chart review • Analysis of program statistics Several outside funding sources also conduct program monitoring and audits. Data is reviewed by the agency's management team, Program Committee, and Board of Directors. Although long -term outcome information is difficult to obtain after clients leave the Shelter, the organization can track the number of clients who move from the Shelter to an independent living situation. Information from former clients. indicates a high degree of satisfaction with the services received. The agency has consistently maintained an excellent reputation in Riverside County for both its program quality and management accountability to funding sources. The agency is audited annually by an independent CPA firm. 0 12 AGENDA ITEM NQ. PACE �� 3 ,/'- AO-1- ARTICLES OF INCORPORATION OF - RIVERSIDE COUNTY- COALITION FOR ALTERNATIVES TO DOMESTIC VIOLENCE I. NAME ATTACHMENT HA - 840332 Ehl.DphSED In the afiice of the Of •�� Sea!„ ^�erefory of Sja, -•-- i Lolifornia MARCH FONG EU, Secretary of State - Colleen R. Petersen Deputy The name of this Corporation is Riverside County Coalition for Alternatives to Domestic Violence_ II. PURPOSES AND POWERS The purposes of this Corporation are: (a) The primary purposes for which this Corpora- L-Lon is foriaed are to explore alternatives to - doimes tic violence by increasing community awareness of the widespread incidence of"this problem, through ediuedtional and. training programs and victim advocacy; by providing emergency services for the victims of domestic violence; by organizing and arranging for counseling services for both.the perpetrators and the victims as a means for decreasing the magnitude;.. frequency and recurrence of domestic violence; and by_organiz- ing and conducting research studies"an the causes, effects and possible cures for domestic violence_ (b) One.specif is purpose for which this Corpora- tion is formed'is to assist women, with or without dependent AGENDA' ; ITEM FAO._- �`� children, in crisis situations by providing_temporar emer= gency shelter, food and /or supportive services._ Such services shall include, but are not limited to the following: family and individual counseling; referrals for needs such as financial assistance, legal assistance, medical and psycholo- gical services, aud.tr aining and employment (cl The general purposes and powers are to have and exercise all rights and powers conferred on nonprofit corporations under the laws of California, Including the power to contract, rent, buy or sell personal or real property; provided, however, that this Corporation shall. not, except to an unsubstantial degree, engage in any activities or exercise any.powers that are not in furtherance of the primary purposes of this Corporation_ - ORGANIZATION This Corporation is organized pursuant to the General Non- Profit Corporation. Law of the State of California and does not contemplate pecuniary gain or profit to the members thereof and is organized for nonprofit purposes. IV_ PRINCIPAL OFFICE The County in this State of the principal office; where.the transaction of the business of the Corporation its ACENDA ITEM NO. �� located in Riverside County. V_ DIRECTORS The number of first Directors of this Corporation is twelve (12). The names and addresses of the persons appointed to act as first Directors are= JOANN BELL, 1992 Blenheim, Ri- verside, CA 92507 BEATRICE DAVIS, 3556 University Avenue, Riverside, CA 92501 BARBARA P. GARDNER, 2965 Robin Road, Riverside, CA 92506 1ARILYNNE BRANDON HAMPTON, 5130 Victoria Ave., Riverside, CA 92506 � ERNIE HAUTALA, 10931 Starlight Ct., Riverside, CA 92505 MAURICE JACKSON, Dept_ of Sociology, University of CA, Riverside 92501 MEREDITH A. JURY,4200 Orange,-Riverside, CA 92502 DONNA LUZIUS, 3554 - 9th Street, Riverside, CA 92501 FREDERICK H._ SA4UELS, 3746 Elizabeth St_, Riverside, CA. 92506 LINA D.`SOCCIO, 6913 Valencia St_, Riverside, CA'92504- MARY ANN STALDER, 8172 Magnolia Ave_, Riverside, CA 92503 MARION B. TFcABAND, 3575 llth St., 2nd >F'loor, Riverside, CA 92501 VI. ACTION WITHOUT MEETING The Board of Directors may take any action without a meeting that.may be required or permitted to be taken by the Board at a.neeting, if -all members of.the Board indi -', vi.dually or collectively consent in writing to the action; AGENDA ITEM CIS _ OF PACUiU. _ The written consent or consents shall be filed in the Minutes of the proceedings of the Board. The action by written consent shall have the same effect as a unanimous vote of Directors. Any certificate or other - document filed with the minutes of the proceedings shall state that the action was taken by unanimous written consent of the Board without a meeting and -that. the Articles of the Corporation authorize this action. VIT. BYLAW PROVISIONS (a) Directors_ The , man.ner -in which Directors shall be chosen and removed from office, their qualifica- tions, powers, duties, compensation, and tenure of office, the manner of filling vacancies on the Board, and the manner of calling and holding meetings of Directors, shall be as stated in the Bylaws. (b) Members. The authorized number, if any, and qualifications of members of the Corporation, the filling of vacancies, the different classes of membership, if any,' the property, voting, and other rights arid- privileges of members, and their liability for dues and assessments and the method of collection, and the te- rmination and transfer -of membership shall be as stated in the Bylaws_ Atif#d iA ITEM NO. -- PACE OF1 NTTTT ri.ii_ DEDICATION AND DISSOLUTION Tha nrnnPrt-v of thi c rornerat - inn -- yrrA;rnra%�y dedicated to the purposes specifted_in Article II(a) and (b) meeting the requirements for exemption pro -Tided by Section 214 of the Revenue and Taxation Code of the State of California and no part of the net income or assets of this organization shall ever inure to the benefit of any Director, officer, or member thereof, or the benefit of any private persons (b) On the dissolution or winding up of the Corporation, its assets remaining after payment of, or provision for payment of, all debts and liabilities of this Corporation, shall be distributed to a nonprofit fund, founda- tion, or corporation which is organized and operated. exclusively for purposes similar to.those in Article II(a)', and (b) and which has established its tax exempt status under Section 501(c)(3) of the Internal Revenue Code, as amended. (c) If this Corporation holds any assets in trust or.the Corporation- is formed for charitable purposes, suc.h'assets shall be disposed of in such manner as may be directed by decree of the Superior Court of the county in which the Corporation has its principal_ office,. .on petition therefor by the Attorney General, or by any person concerned iii the liquidation, in -a proceeding to which the Attorney.. LIWA tTUVI CVO. ys `° . DA, n 1 '�k nc General is a party. TX LIMITATION ON CORPORATE ACTIVITIES No substantial part of- the activities of this Corporation shall consist of the carrying on of propaganda, or otherwise attempting, to influence legislation, nor shall this Corporation participate in, or intervene in, (including the publishing and distributing of statements) , any political campaign on behalf of any candidate for public office. IN WITNESS WHEREOF, the.undersigned, who are the incorporators of and include the named first Directors of this Corporation, have executed these Articles -of Incorpo!ra tion on December 16 1977. JoX Be Beatrice Davis Barbara P. Gardner ?(Mari Anne Brandon Hampton Ernie. Hautala AGMDA ITEM 13Q. �S U Maurice Jackson; Meredith A. Jur A�, e7z-�-t� "ZIL Donna Luzius _L/-� '! ZFrederick H_ Samuels Cz �l Lira D- Soccio Marl Ayf,4 S to ..e-t Ma ion B. T aband -7_ LIS UEN GA ITUA NO N"00 STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. On this 15th . day of December 197_7, before Lice, the LInA si Notary ,-..� g1ICd, a Notes y Pbl .: .. ,7 �_.. iiui� iil ailu tut Said %oiiil�y and State, duly commissioned and sworn Personally appeared, To 111 D I l D.. .. ea + l.t ice Tl Uce D,. w1... 7) Gardner, - DcLtbara r - Lidrlly -nTte Brandon Hampton, Ernie Hautala, Maurice Jackson, Meredith A• Jury, -Donna Luzius, Frederick H. Samuels, Lina D. Soccio, rlary Ann Stalder and'Marion B. Traband known to me to be the persons whose names are subscribed to the foregoing Articles Of Incorporation, and.acknowledged to me that they executed the same. WITNESS my hand and official seal the day and year first above written. /1 :1AL S AL ra P' FUc Notary Public in and for slV: o., CALIF. CouT_? ty and S to tP My comxpires S- 28 -8-^ (SEAL) PA OF 4 alate - California OFFICE OF THE SECRETARY OF STATE I, MARCH FONG EII,r Secretary of State of the State of C n 14nrn i .,::i 1�T ( q,:-ri f %7- That the annexed transcript has been compared with the record on file in this office, of which it purports to be a copy, and that same is full, true and correct. IN WITNESS ` WHEREOF, I execute this certificate and affix the Great Seal of the State of California this DEC 2 3 1980 oMCL Of V rh S}ofea Se�eto DEC 18 frg,.fo ��a` S}Q }e CEF,TIFICATE OF AMENDMENT OF ARTICLES uF INCORPORATIONAmRCH O FANG FU, Secretary 8 BY JAMB A of State D-Puty `;RRIS Don R. Inskeep and Patricia E. Gus certify: 1) they are the President and Secretary, respectively, of the Riverside County Coalition for Alternatives to Domestic Violence, a California corporation; 2) at a meeting of the board of Directors of said corporation duly held in Riverside, California on June 10, 1980, the following resolution was adopted: RESOLVED: Article VIII of the Articles of Incorporation of the Riverside County Coalition for Alternatives to Domestic Violence IS AMENDED TO READ AS FOLLOWS. ARTICLE VIII IRREVOCABLE DEDICATION - DISSOLUTION CLAUSE "This corporation is not organized, nor shall it be operated, for pecuniary gain or profit, and it does not contemplate the distribution of gains, profits or dividends to the members thereof and is organized solely for nonprofit purposes. the property, assets, profits and net income of this corporation are irrevocably dedicated to charitable and religious purposes and no part of the profits or net j ncome-of this - corporation s.ha1I ever inure to the benefit of any director, officer, or member thereof or to the benefit of! any Private shareholder or individual. Upon the idssolution or winding up of this corporation, its assets remaining after payment of, or provision for payment of, all debts and liabilities of this corporation shall be distributed to a nonprofit fund, foundation or corporation, which is organized and operated exclusively for charitable and religious-;purposes and which has established its tax exempt status under Section 23701d of the Revenue and Taxation Code and /or Section bOl(c)(3) of the Internal Revenue Code. If this corporation holds any assets on trust, such assets shall be disposed.of in such manner as may be directed by decree of the superior court of the county in which this corporation's principal office is located, upon petition therefor by the Attorney General or b an AI,GEN�A ITEM NO. yJ y y y person. concerned in the liquidation." PA C9,_ 01 BY -L Revises ATTACfIMENT IIA BYLAWS OF ALTERNATIVES TO DOMESTIC VIOLENCE "Mo, I_ NAME The name of this Corporation is Riverside County Coalition for Alternatives to Domes_ tic Violence, Inc., doing business as "Alternatives to Domestic Violence" (ADV). II. OFFICES Section 1. Principal Office_ The Corporations principal offices shall be fixed and located at such place as the Board of Directors (herein called- the "Board') shall determine_ The Board is granted full power and authority to change said principal office from one location to another_ Section 2. Other Offices: Branch on subordinate. offices may be established at any time by the Board at any place or places within Riverside County. Section 1. Directors As Members. The Corporation salt have no mnembers. Any action which would otherwise require approval by a majority of all members or approval of the members shall require only approval of the Board of Directors_ All rights and .,fir responsibilities legally and customarily vested in corporate membership shall be vested in the Board. Section' 2. Associates: This Article does not preclude using the terra "member °or "membership. to refer to other categories of affiliation with the Corporation (such as donors, committee members, etc.). Such reference does not constitute anyone a voting member or corporate member, within the meaning of Section 5056 of the California " Nonprofit Corporation Law. IV BOARD. OF DIRECTORS Section 1. Number. The afflairs of this Corporation shall be managed by Board of Ten (10). Section 2. Election: Elections to the Board -of Directors shall be held at each Annual Meeting. Tlae Direc =P; Nominating Committee shall mail a single slate of candidates for Board of Directors to ail currently-serving Board . members at least thirty, (30) days prior to the Annual Meeting. With. the written -consent of any potential candidates, additional nominations maybe made from the floor at the Annual Meeting. Each - Director may cast up to one vote for each vacant position. In uncontested elections. Pagel �RRcvised: Jsne 20U1 NOS ITEM NO. ITEM y`� nominated candidates shall be elected by majority vote of Directors present and voting. If there are more candidates than vacancies, the candidates receiving the largest number of votes cast shall be elected to fill available positions- Section 3. Term: Terms shall be 3 years, with directors assuming office immediately upon election. Terms shall be staggered so that approximately 1/3 of the terms shall expire each year. A Director may be elected for three consecutive full terms (A Director who is elected between Annual - Meetings to fill an unexpired term, which has become vacant will be considered to have served a full term if he /she serves for more than 112- of the (unexpired term). A person who has completed two terms on the Board of Directors is eligible to serve again after a one -year absence- The Immediate Past President shall serve as a Director for one additional year even if that person has served his /her full second term. Section 4. Removal: A Director may be removed at any regular or special meeting of the Board by a 2/3 vote of the Directors present and voting. Grounds for removal of a Director may include, but are not limited to, excessive absences from Board meetings (two consecutive unexcused, three consecutive excused, or more than 6 missed meetings in any 12 month period), a Directors relocation from the area without tendering resignation, conflict of interest which would compromise a Directors ability to act in good faith on behalf of the Corporation, illness or injury causing permanent or extended physical disability which renders Director unable to serve, declaration of unsound mind by final order of the Public Benefit Corporation Law. No reduction of the authorized number of Directors shall have the effect of removing any Director prior to the expiration of the Directors term of office. Section 5. Vacancies: Subject to the provisions of Section 5226 of the California. Nonprofit, Public Benefit Law, and Director may resign effective upon giving written notice to the President, the Secretary, or the Board, unless such notice specifies a later time for the effectiveness of such resignation. If the resignation is effective at the future time, a successor may be selected before such tune, to take office when the resignation becomes effective. A vacancy or vacancies shall also be deemed to exist in case of the death .or removal of any Director, or if the authorized number of Directors is increased. Vacancies on the Board may be filled by election by a majority of the remaining Directors, although less than a quorum, or by a sole remaining Director. A: person so elected will serve the remainder of the unexpired term of his/her predecessor, being eligible for m= elecr*on according, to Section 3 of the Article_ . Section fi. Compensation: A Director shall not receive compensation for services rendered' to the'Corporation.as a member of the Board of Directors- However, any Director may be, reimbursed for actual expenses incurred in the performance-of duties_ Moreover, a Director may be compensated for special professional services rendered-. to the Corporation above and beyond the normal services of 'a Director, if such compensation is Page 2 �;GERDA t`E`Cldi tvt7 . IJ PFD approved by a majority vote of the Board of Directors, such vote -taken when the Director co be compensated for special professional services rendered to the Corporation above N"1001 and beyond the normal services for a Director, if such compensation is approved by a majonty vote of the Board of unrectors, Jug vote taker, hen thIC -u-Ctor to l�P compensated is not present and not voting. V. MEETINGS OF BOARD OF DIRECTORS Section 1. Regular Meetings: Regular meetings of the Board of Directors shall be held at least ten (10) times per year with at least one (1) weeks notice, at such place and hour as may be fixed from time to time by resolution of the Board. Section 2. Special Meetings: Special meetings of the Board of Directors shall be held when called by the President of the Board, by the Executive Committee, or by any two (2) Directors. At least three (3) days notice of a special meeting must be given to each Director_ Section 3. Annual Meetings: An Annual Meeting of the Board of Directors shall be held for the purpose of electing Directors and officers of the Board and conducting such other corporate business as is required by law and for deemed necessary by the Board. This meeting shall be scheduled during the 60 -day period immediately prior to the beginning of the next fiscal year. Written notice of time and place shall by mailed to the last known address of each currently serving Director no later than ten (10) days prior to the date of the Annual Meetings. Section 4. Notice: Notice will be deemed to have been given at the time a written notice is deposited in the U.S. Mail_ Any other written notice shall be deemed to have been given at the time it is personally delivered to the recipient or is delivered to a common carrier for transmission, or actually transmitted by the person giving the notice by electronic means to. the recipient. Oral notice shall be deemed to have been given at the time it is communicated, in person or by telephone, to the recipient or to a person at the home or office of the recipient who the person giving the notice has reason to believe will promptly communicate it to the receiver_ Section 5. Waiver of Notice: Notice of a meeting need not be given to any director who signs 'a waiver of notice 'or a written consent to holding the meeting or an approval of the minutes thereof, whether before or after the meeting, or who attends: the meeting without protesting, prior thereto or at its c--mm enceruent, the lack of notice to such Dhiector. All such waivers, consents and approvals shall be filed with the corporate records or made a part of the minutes of the meetings. Section 6. Quorum: The quorum for the board- of directors meeting shall be no Iess than one =third (1/3) of .the ;6ltei Director positions. A meeting at which.a quorum is initially present may continue to trransaet business=notwithstanding the withdrawal of i'ag�e. 3 ALENDA ITEM NO qS PACE ' Za O Directors, if any action taken is approved by at least a majority of the required quorum for such meeting_ Section 7. Board Action_ Official board action shall be determined by a majority voice or written vote of Directors present in person, except as specifically directed otherwise in these bylaws. No proxy voting shall be valid. Section 8. Adjournment: A majority of the directors present, whether of not a quorum is present, may adjourn any Directors meeting to another time and place. Notice of the time and place the meeting to be reconvened need not be given to absent Directors if the time and place are fined at the meeting adjourned, unless the reconvened meeting is to be held more that 48 hours later, in which case notice (oral or written) shall be given to Directors absent fro_n the adjourned meeting. Section 9. Action Taken Without a Meeting: The Directors shall have the right to take any action in the absence of a meeting which they could take at a meeting by obtaining the written approval of 3I4 of Directors. Amy action so approved shall have the same effects as though taken at a meeting of the Directors, and shall be filed with the minutes of the proceedings of the Board. �— VI. POWERS AND DUTIES OF THE BOARD OF DIRECTORS Section I. General Responsibilities: Subject to the provisions and limitations of the Articles-of Incorporation, these bylaws, and the California Nonprofit Public Benefit Corporation Law and any other applicable laws, the Board of Directors shall be responsible for and have the power to: a manage and = administer affairs of the Corporatiarq b. adopt plans and policies for the operation of the Corporation; C. exercise fiduciary responsibility by adopting budgets, managing corporation assets and liabilities, and insuring that adequate financial resources are available to maintain fiscal viability of the Corporation; d. designate financial institutions approved for depositing Corporations funds an d designate persons authorited to sign checks or drafts against deposited fiords; e. constitute committees; ratify appt►intrnei€t of committee Chairs; and: prescribe duties for committees; f elect and remove officers, and prescribe duties; g. employ, compensate, and release an Executive Director, Page 4 ACENUA I m r�a While the Board may delegate the management of the activities of the Corporation to an y person or persons, all corporate powers shall be exercised under the ultimate authority of the Board. Section 2. Power to Contract and Incur Indebtedness - The Board of Directors may authorize any officer or officers, agent or agents, or staff to enter into any contract or execute any instrument in the name of and on behalf of the Corporation; such authority may be general or may be confined to specific instances. Unless so authorized by the Board of Directors, no office, agent or employee shall have any power of authority to bind the Corporation by any contract or engagement or to pledge its credit or to render it liable for any purpose or in any amount. No officer, agent or employee shall have any power or authority to render the Corporation liable for any amount in and excess of $1,000.00 (if such expenditure would cause total expenses for any specific category to exceed amount currently budgeted for that category unless specifically authorized to do so by an affirmative vote of a majority of the Board of Directors present and voting.) Any notes or other evidences of indebtedness issued in the name of or payable to the Corporation shall be signed or endorsed by the President and other officers as so designated by Board resolution. VII. OFFICERS AND THEIR DUTIES LW2 Section 1. Enumeration of Offices: The officers of the Corporation shall be as follows: President, Immediate Past President, President Elect, Secretary and Treasurer. The officers of the Corporation shall at all times by member of the Board of Directors. The Executive Directors shall be considered Chief Executive Officer; ex officio. The Board of Directors may create other offices from time to time by resolution. Section 2. Election of Officers- Tine President shall appoint an Officers Nominating Committee composed of two (2) Board members and one (1) non -Board community representative with continuing interest and knowledge of the agency_ The Committee Will prepare a single slate of nominees for election as officaeis of the Corporation. The Officers Nominating' Committee shall also prepare a single slate.of nominees to serve on the subsequent years Directors Nominating C.osrimrttee (See Article VIII, Section 2). Service on the Officers Nominating Committee shall not automatic ally. disqualify a willing person from being nominated for a position if there is a c:onsens -M uhal .sate person is more qualified. than other pc ential candidates to serve. Additional nominations may be made from the floor at the time of election, with written consent of person(s) so nominated. The President, Vme= President, Secretary and Treasures shall be elected by the new Board of Directors at the Annual Meeting, and shall begin their terms immediately upon election. The President shall take the office of Immediate Past President immediately upon the election of a new President- Section 3. Term: The President of the Corporation shall hold office- for a two-year term (unless he /she shall sooner resign, or shall be removed or otherwise disqualified to serve). Page 5 MEWA ITEM NO PAM No President shall serve more than one two-year term -in the office within the maximum six years (two terms) of Board membership, unless as specified in Section 7, below. The officers of the Corporation shall hold office until the next Annual Meeting unless an officer shall sooner resign, or shall be removed or otherwise disqualified to serve_ There is no limit, except that imposed in Article N, Section 3 on Director terms, to the number of consecutive terms to be held by officers other than the President Subsequent to the required one -year absence from the Board after two consecutive terms as a Director, a former officer shall again be eligible for any office according to the terms of this Article. Section 4_ President Elect It is the intention of these bylaws that the person elected Vice - President shall succeed to the office of the President. This is not binding upon the Board, which may by following the nominating procedure in Section 2 above select another candidate_ Section 5. Special Appointment: The board may elect such other officers as the affairs of the Corporation may require, each of whom shall hold office for such period, have such authority and perform such duties as the Board may from time to time determine. Section 6. Resignation and Removal• Any officer may resign at any time, giving written notice to the Board, the President or the Secretary. Such resignation shall take effect on the date of receipt of notice or any later time specified therein. The acceptance of such resignation shall not be necessary to make it effective_ Any officer may be removed from office, for cause, by 2/3 vote of the Board: Such officer must be given written notification of the reasons for such removal and be given the Opportunity to respond in writing and orally at a meeting of the board. Section 7- Vacancies_ A vacancy in any office shall be filled by appointment by the Board: The officer appointed to such vacancy shall serve for the remainder of the unexpired term of the office, and be. eligible for re- election as specified in Section3 of this Article. A President so appointed who serves less than .six months of an unexpired term shall be eligible for election to two one -year terms in his /her own right. Section 8. Duties: The duties of the officers are as follows: (a) President: The President shall preside at all meetings of the Board of Directors; shall see that all orders and resolutions -of the are carried out and shall exercise such powers as are necessary to fit the duties of the off; shall subject to the control of the Board of Directors, have general supervision, direction and control of the business and the officers of the Corporation; shall sign all leases, mortgages, deeds and other written instruments; may co -sign checks; and may be a signatory on all promissory notes_ Page 6 iwi'JDA i"lEM Net. ycs OF It PACE I. he President shall present to the Board within the first quarter of the fiscal year the goals ana oojectives of an annual plan developed by the Executive Committee. (b) Vice - President: The Vice - President shall act in the place and stead of the President in the event of absence, inability of refusal to act; shalt serve as a dminist� tU assistant to the President; shall act as the .Affirmative Action Officer for the Corporation; and shall exercise and discharge such other duties as may be required of the office and /or prescribed by the Board. The Vice- President may co-sign checks_ (c) Secretary: The Secretary shall be responsible for having the votes recorded and the minutes kept of all meetings and proceedings of the Board; shall serve notices of meetings of the Board; and shall keep appropriate current records showing the membership of the Board; and shall fulfill such other duties as determined by the Board_ The Secretary may co -sign checks. (d) Treasurer: The Treasurer shall keep the books of account as required by law and by funding sources; shall be a member, although not necessarily Chair, of the finance Committee; in conjunction with the Finance Committee, shall recommend an annual audit of the corporate books to be made by a public accountant at the completion of each fiscal year; shall present an annual budget and statement of income and expenditures for adoption by the Board prior to the beginning of each fiscal year; and shall fulfill such other duties as determined by the Board. The Treasurer may co -sign checks. (e) Executive Director: The Board of Directors may employ an individual to serve as Executive Director. As chief executive officer for the Corporation, the Executive Director shall serve as an ex- officio member (without vote} of the Board of Directors and of the Executive Committee, and shah be responsible to the Board, through the President, for managing the total operations of the Corporation: He /she shall have the authority to select, employ, supervise, and rcicase other staff members in accordance with budget and personnel - poliises adopted by Board of Directors.-- He /she shall act as a. resource person in an advisory capacity to the Board, and shaU fulfill such other duiics- as may be delegated by the Board. The Executive Director shall be authorized as a co- signer of checks, contracts, and notes_ Section9. General Statement The Board of Dimaors shall from time to time': appoint such committees as deemed necessary to carry out its purpose, With the exception of standing committees, other committees: may be created; reorganized, and /or disbanded by action of the Board. Four types of committees shall be reed: a. Standing CommitLees_ Ongoing; necessary to the continuing maintenance of governance processes of the Corporation; e_g_, Directors Nominating Committee and Executive Committee: Page Z AGENDA IJ,'EM N0. b. Functional Committees: Ongoing; created to focus on policy and plarming issues affecting specific operational/management iiznctions necessary to carry out the mission of the �w Corporation; e.g., Program, Public Relations, Ymance, Fund Development, and others as may be so designated by the Board. C. Regional Advisory Committees: Ongoing; represent ADV in specific geographic regions throughout Riverside County; provide support to all functions of the agency in local communities- d. Ad Hoc Committees andlor. Task Groups: Created as needed for special projects, events, and /or tasks_ When task is completed, committee may be disbanded. (The Officers Nominating Committee is an example of this type of committee.) The Chair of each committee (except the Regional Advisory Committees; see Section 4, . below) shall be appointed annually by the President and shall be a member of the Board of Directors. The members of each committee will be appointed by the Chair, and will be ratified by the Board at its next scheduled meeting. Committees should include community members who are not current ADV Directors. Each member shall serve from the time of appointment until the next Annual Meeting, with eligibility for unlimited re- appointments, until member resigns, is removed, or is otherwise disqualified, or until dissolution of the committee. The Chair of any committee may a pviiit suit- committees as needed to carry out the work of the committee.. Each committee or sub- committee shall be encouraged to use community resource persons as consultants for the committee or sub - committee. Such consultants may be appointed by the Chair to the committee if commitment to ADV's mission and consistent pazticipation in the work of -the committee justifies such appointment Committee reports shall be made at each meeting of the Board of Directors, which must act upon any contemplated actions or recommendations of the cotee, which will affect Corporation policy or budget. Section 2 Directors Nominating Committee: The primary responsibility of the Nominating Committee is to identify, recruit, and nominate persons for election to the Board of Directors. Additionally, the Committee is responsible for orienting and training new Directors. The Committee is responsible for carrying out a carefully planned process designed to obtain influential, knowledgeable, and representative leadership and properly orienting them to their responsibilities with the agency. Upon presentation of the slate by the Officers Nominating Committee at the Annual Meeting, the Board of . Directors shall elect a minimuIm of tare (3) members to the Nominating Committee at the Annual Meeting, with the Chair and at least one other member being current Directors; and one. representative from'Gue of ADV's designated regions. Section 3. Executive Comnittee: The Executive Cornrnttee shall consist of the officers of` the .corporation. The purpose of this Committee shall be to - assist the President and the Board of Directors is short-term admire .strIation and decision- - making of the .orporauorz. Page 8 .r✓ AGENDA, ITEM NO �S This committee may take emergency action in the interim between So meeticigs, following the procedures for notice, quonnn, and action specified in Article V, Sections 4 through 9, substituting "Committee Members" for "Directors". However, the Executive Committee is prohibited from taking action on the following: a. approval of any action for which the California Nonprofit Public Benefit Corporation ?.aw rPq „irk approval of the members or approval of a majority of the members; b. the filling of vacancies on the Board; C. the fixing of compensation of the directors for serving on the Board or on any committee; d. the amendment or repeal by bylaws or the adoption of new bylaws; the amendment or repeal of any resolution of the Board which by its express term is not so amenable or repeal able; C- the appointment of other committees of the Board or the members thereof; f. the expenditure of corporate funds to support a nominee for Director after there are more people nominated for Directors than can be elected; g. the approval of any self - dealing transaction as such transactions are defined in Section 5233(a) of the California Nonprofit Public Benefit Corporation Law. The decisions of the Executive Committee shall be ratified at the next regular meeting of the Board of Directors. Section 4 Regional Advisory Comniittees� Re ioaal Advisory G°"t shall be chosen'to represent eo hic regiioas of the corporation. Geographic Pie g Brag - regions shall be designated by the Board as appropriate.e =os.Rl Cmmittees shall consist of community members within their respective o regions and shall have at least one member of the Board of Directors as a -member. The Chair of the Regional Advisory Committee shall be. elected by its respective members and may or may not be a member of the Board of Directors. The Chair shall alt as the o%ial liaison between the Board of Directors and their coMIUtties. IYI ADVIS4R'Y COUNCIL An Advisory Council shall be irnplemented. and maintained cxsrriposed of rcpiese�station from all regions of the county_ The sole purpose of the Advisory. Council is to cultivate individuals cony fitted -to ADV for fund raising. a. the Council shall not exceed fifty (50) members. Page 9 AGENDA ITEM iVO. y b. the Chair of the Council will be elected by the members to serve a one year term_ c. The Council will meet at least annually. X. RECORDS, REPORTS AND LEGAL. RE Q S Section 1. Maintenance of Corporate Records a. adequate and correct books and records of account, including accounts of-its assets liabilities, receipts, disbursements; gains, and losses: b. written minutes of the proceedings of the Board of Directors and committees of the Board; C. written minutes of the Annual Meeting. Section 2 Maintenance and Inspection of Articles and Bylaws: The Corporation shall keep at its principal office, available for inspection by any interested individual, the original or a copy of the .Articles of Incorporation and bylaws, as amended to date. Section 3. Inspection by Directors: Every Director shall have the absolute right at any reasonable time to inspect the Corporations books, records, documents of every kind, and physical properties. (All client files and records are exempted from this. right) The inspection may be made in person or by the Directors agent or attorney The right of inspection includes the right to copy and make extracts of documents. Section 4. Annual Report and Audit: The Board shall cause an Annual report to be sent to the Directors not Iater than one hundred twenty (120) days after the close of the Corporations fiscal year. The report shall contain information i a. Assets and liabilities, including trust funds, of the Corporation as of the end of the. fiscal year, b. Principal changes in assets and liabilities; C. The revenue and receipts of the Corporation, both unrestricted and restricted to particular purposes; d_ The expenses and disbursements of the Corporation for both general and restricted- purposes; . e Program accomplishments of the prior year. .Page 10 �..� A GENDA ITEM rocs: pA��tJ�7i Ao�_ The report shall be accompanied by a report of an annual audit conducted by u- dependent accountants, or if there is no such report by the certificate of an authorized officer that such statements were prepared without audit from the Corporations boobs and records. ,#--- Section 5. Statement of Certain Transactions and Indemnification's' The Corporation shall furnish annually to its Directors a statement of any transaction or indemnification in which the Corporation was a party, and in which an interested person as defined by the California Corporations Code had a direct or indirect material financial interest as described in section 6322(c) and (d) of the California Corporations Code, if such transaction of indemnification took place. Such annual statement shall be affixed to and sent with the Annual Report described in Article IX., Section 4 above, as required by the California Corporations Code. Section 6. Endorsement of Contracts /Documents: Subject to the provisions of applicable law, any note, mortgage, evidence of indebtedness, contract, conveyance, or other instrument in writing and any assignment or endorsement thereof executed or entered into between the Corporation and any other person, when signed by the President, Vice President, and the Secretary or the Treasures of the Corporation shall be valid and binding on the Corporation in the absence of actual knowledge on the part of the other person that the signing officers had no authority to execute the same. Any such instruments may be signed by any other person or persons and m such manner as from time to time shall be determined by the Board, and, unless so authorized by the Board, no officer, agent, or employee shall have any power or authority to bind the Corporation by any contract or engagement or to pledge its credit or render it liable for any purpose of amount. Section 7. indemnification: a) ^Right of indemnity. To the fullest extent Permed by law, this Corporation shall indemnify its Directors, officers, employees, and other persons desen%ed in Section 5238 of the California Corporations Code, including persons formerly occupying such positions, against all c-- -pvus , ud5gmcn , fi 5, Ve!demen sand °ffi amounts actually and reasonably incurred by therm in connection with any, "pnoeedmgs,' as that tempo is used in that Section, including an action by or in the right Of the Corporation, by reason of the fact that the person is or -was a person described in, that Section. "Expenses" as used in this bylaw shall have the same meaning as in Section 5238 of the California. Corporations Code b) Approval of indemnit: Such indemnification shall be made by the Corporation only if authorized in the specific case as follows: i. On written request to flie Board by any person seeping indemnification under Section 5238 of the California Corporations Code, the Board of Directors shall Page 11 promptly determine under Sections 5230 -5236 whether the applicable standards of conduct set fourth have been met and, if so, the Board shall authorize indemnification by a majority vote of a quorum of Directors who are not party to such. proceeding. u. If such a quorum cannot be obtained, determination may be made and indemnification authorized by the court in which such proceeding is or was pending, upon application by the Corporation or the agent or the attorney or other such person rendering services -in connection with the defense., whether or not such application by the agent, attorney, or other person is opposed by the Corporation. c) Compliance: The Corporation shall comply with provisions of the California Nonprofit corporations Code sections, including, but not limited to, the provisions relating to purchase and maintenance of insurance policies on behalf of any agent of the Corporation against a liability asserted against or incurred by the agent in such capacity or arising out of the agents status as such. The Corporation shall have no power, however, to purchase and maintain such insurance to indemnify any agent of the Corporation for a violation of Section 5233 of the California Nonprofit Public Benefit Corporation Law- Section 8. Fiscal Year The fiscal year of the Corporation shall be from July 1, through June 30, inclusive. Section 9 Parliamentary Authority- The dehberations and conduct of business of the `"' Corporation, its Board of Directors. and Committees shall be governed by the parliamentary rules and usages contained in the then current edition of "Robert's Rules of Order, Newly Revised, ° when not in conflict with these bylaws- Section 10. Seal- The Board shah have the power -to adopt, male and use a corporate tim seal, and to alter the form of such a seal from time to- Section 11. Non- discaimina#ion: No person shall be excluded, segregated, or otherwise discriminated against within the Corporation because of age, color, economic status, education, marital status, national origin, parenthood, Vie, religion, sex, sexual orientation, or physical disability. Section 12 Other Compliance: as a. The Corporation shall coznpiy:with Federal financial and proc" �-cmcnt requirements defined in "common code" and specified by 24 CFR 85 of Cozrununity Development Block Grant Entitlement Program. page 12 .,p► AGENDA ftiv ire - PACE Jt_10F. 31 b. The Corporation shall comply with Federal conflict -of= interest requirements as speed oy 24 CF R 5700.611 of Community Development Block Grant Entitlement Program. M. ANi€ENDMERt 1rS These bylaws may be adopted, amended or repealed at a regular, Annual, or special meeting by a 2/3 vote of Directors present in person, provided notice of proposed bylaws changes was given to all Directors as specified in Article V. MARCIA MCQUERN President UCR Office of Marketing & Media Relations (w) (951) 827 -2646 5717 Bedford Drive Riverside, CA 92506 (h)(909)369 -1376 (e- mail) mcquern@charter.net 2003 -2009 TERESA RHYNE President Elect Carney & Delany 3801 University Ave. Suite 750 Riverside, CA 92502 (w) (951) 682 - 6500x209 (h) 951) 780 -0179 (f) (951) 682 -6591 2004 -2010 SHEILA CLA:RKE 1875 Natalie Lane Riverside, CA 92506 (951) 7804104 NUCHAEL LANE Chief of Police University Of California Police 3500 Canyon Crest Drive Riverside, CA 92521 (w) 951 -827 -3848 (f) 951- 683 -1639 - emal- mike.lane@ucr.edu ATTACHMENT H .If.rnaflves to Domestic � l��ieltee o,ard of Directors Rosser- ..�► ZOQS -206 PEG MOORE Treasurer 43557 Savona Street Temecula, CA 92592 (w) (951) 302 -9536 (0 (951) 302 -9536 (e -mail) jand�.moore@verizon.net 2002 -2008 PETER LA KAHN SherifFs Administration Chief Deputy P.0_ Box 512 Riverside, CA 92501 (w)(951)955 -2424 (c) (951) 453 -4336 (h) (951) 677 -9927 2003 -2009 LINA SOCCIO ANN MACIAS Secretary Advanced Commercial Companies 6913 Valencia St. 3576 Arlington Ave., Suite 203 Riverside, CA 92504 Riverside, CA 925.06 (h) 951- 686 -4261 (w) (951) 778 -9222 2004 -2010 (fl (951) 778 -9292 Advanced(a?,penet JERRY FINEMAN Deputy District Attorney County of Riverside 4075 Main Street Riverside, CA 92501 (w) (951) 955 -5400 (e- mail) gfineman(a?,co.riverside:ca.us 2002 -2008 *Officers may serve 2 consecutive 3 year terms Revised 8/26/2005 REVEREND JANET R. WESTALL Vicar St. Stephen's Episcopal Church P.0 Box 458 26704 Murrieta Road Sun City, CA 92586 (church) (951) 679 -0757. (h) (951) 699 =5177 (cell) (909) 730 -7342 2001 -2007 AG1'a110A ITUV: Q -*%j . Yj PAM 11-33 OF ALTERNATIVES TO DOMESTIC VIOLENCE (A NON - PROFIT CORPORATION) FINANCIAL STATEMENTS TUNE 30,2004 and 2003 1 AGENDA.ITEM M �� CONTENTS Independent Auditors' Report Financial Statements Statements of Financial Position Statements of Activities Statements of Cash Flows Statements of Functional Expenses Notes to the Financial Statements (1 through 11) Supplemental information Schedule of Expenditures of Federal Awards Office of Emergency Services - Schedule of Grant Revenue and Expenditures Independent Auditors' Report on Compliance and on Internal Control Over Financial Reporting Based on an Audit of Financial Statements Performed in- Accordance with Government Auditing Standards Report on Compliance with Requirements Applicable to Each Major Program and on Internal Control Over Compliance in Accordance with OMB Circular A -133 Schedule of Findings and Questioned _Costs Schedule of Prior Findings — Financial Statements Audit Exhibit A B C D Schedule 1 2 3 AriEN13A ITEM tip. 2 PACE OF a./ N%a r" �tABTREE & ASSOCIATES, C7PAS A uM1TED LIABILITY PARTNERSHIP ROLAND H. CRABTREE (1917 -1990) CPA SM The CPA N_., Undereeli " The W­_ To the Board of Directors Alternatives to Domestic Violence Riverside, California November 10, 2004 Independent Auditors' Report J. MICHAELTWEEDLIE, C.P.A.- GREGORY A. SEIGLER, C.P_A. SANDEE M.T WEEDLIE, C_P.A.' VINCENT P. AMATULLL C.P.A.' STEVEN J.TWEEDLIE, C.P.A.' SHAREHOLDERS OF PROFESSIONAL CORPORATIONS We have audited the accompanying statements of financial position of Alternatives to Domestic Violence, (a non - profit corporation) as of June 30, 2004 and 2003, and the related statements of activities, cash flows and functional expenses for the years then ended. These financial statements are the responsibility of the Organization's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Governmental Auditing Standards issued by the Comptroller General of the United States of America. , Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit dudes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An nt also includes assessing the accounting principles used and significant estimates made by management, as well as ion. We believe that our audits provide a reasonable basis for our evaluating the overall financial statement presentat opinion_ In our opinion,'the financial statements referred to above present fairly, in all material respects, the financial position of Alternatives to Domestic Violence at June 30, 2004 and 2003, and the changes in its net assets and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America. in accordance with Governmental Auditing Standards, we have also issued a report dated November 10, 2004 in our consideration of Alternatives to Domestic- Violence's. internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants. This report is a integral part of an audit performed. in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of audits. Our audits were performed for the purpose of forming an opinion on the basic financial statements of Alternatives to Domestic Violence taken as a whole. The accompanying Schedules 1, 2, 3 and 4, which include the schedule of expenditures of federal awards; are presented for purposes of additional analysis as required by the U.S. Office of Management and Budget Circular A -133, Audits of States, Local Governmental, and Non -Profit Organizations, and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the --audits of the basic financial statements and, -in our opinion, is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole. Certified Public ccountants 7 S Ari1~NDA {;EM Nth. - 30020 INDIANA AVENUE, SUITE Zll RIVERSIDE, CALIFORNJA 92503 •TELEPHONE (949) 352 -0255 •FAX (9Q�J,j? 0 F ALTERNATIVES TO DOMESTIC VIOLENCE -- $ 310,786 44,865 - 44,865 STATEMENTS OF FINANCIAL POSITION - 29,849 79,387 -- 79,387 June 30, 2004 and 2003 - 6251625 26,847 26,847 2004 Temporarily Unrestricted Restricted Totals ASSETS Current assets: Cash and cash equivalents - Exhibit C $ 195,475 $ -- $ 195,475 Grants receivable (Notes 3, 7 and 10) 153,136 -- 153,136 Promises to give (Note 7) -- 92,307 92,307 Prepaids 9,742 - 9,742 Total current assets 358,353 92,307 450,660 Restricted assets (Note 7) Construction in process - new shelter.(Note 9) Properly and equipment (Note 4) Deposits /other assets Total assets LIABILITIES AND NET ASSETS Current liabilities: Accounts payable Accrued compensated absences Accrued payroll liabilities Advances on grants Credit lines Current maturities of long -term liabilities (Note 5) Total current liabilities Note payable - long -term (Note 5) Total liabilities Net assets Unrestricted Temporarily restricted (Note 7) Total net assets - Exhibit B Total liabilities and net assets 187,539 1871539 1,547,564. - 1,547,564 127,618 - 127,618 15,870 -- 15,870 $ 2,049,405 $ 279,846 $ 2,329,251 I* $ 310,786 $ -- $ 310,786 44,865 - 44,865 29,849 - 29,849 79,387 -- 79,387 625,625 - 6251625 26,847 26,847 1,117,359 - 1,117;359 2,339 - 2,339 1,119,698 - 1,119,698 I 929,70 - 929,707 -- 279,846 279,846 929,707 279,846 1,209,553 l $ 2,049,405 $ 279,846 $ 2,329,251 The accompanying notes are an integral part of these financial statements. > /� 4 ,.AGENDA ITEM No. `T PACe OF:. EXMIT A 2003 Temporarily Unrestricted Restricted Totals $ 12,388 $ -- $ 12,388 204,089 186,126 390,215 -- 59,992 59,992 12,410 - 12,410 228,887 246,118 475,005 _ 200,000 200,000 435,744 -- 435,744 128,619 -- 128,619 11,945 -- 11,945 $ 805,195 $ 446,118 $ 1,251,313 $ 44,893 $ - $ 44,893 38,895 - - 38,895 25,892 -- 25,892 522881 - 52,881- 47,950 - 47,950 24,829 - 24,829 235,340 - 235,340 28,013 - 28,013 263,353 - 263,353 541,842 -- 541,842 _ 446,118 446,118 541,842 446,118 987,960 805,195 $ 446,118 $ 1,251,313 GiS AGENDA ITEM CEO. 5 PA OF ALTERNATIVES TO DOMESTIC VIOLENCE STATEMENTS OF ACTIVITIES For the Years Ended June 30, 2004 and 2003 SUPPORT: Grants from governmental agencies (Note 2) United Way funds Contributions Donated services (Note 9) Donated facilities, equipment and supplies Net assets released from restrictions. (Note 8) Total support 2004 Temporarily Unrestricted Restricted Totals $ 1,195,835 $ -- $ 1,195,835 30,671 92,307 122,978 70,860 220,815 291,675 166,479 -- 166,479 104,775 -- 104,775 479,394 (479,394) -- 2,048,014 (166,272) 1,881,742 REVENUE: Interest income 1,123 -- _ _ 1,123 Miscellaneous income 29,919 - 29,919 Total revenue 31,042 - 31,042 Total support and revenue EXPENSES: Program support: Horizon House Casa de Paz Children's program Outreach services Family preservation project Assistance to Needy Families Crisis line Community education Management and general Fundraising Total expenses - Exhibit D Change in net assets - Exhibit C Net assets, beginning of year Net assets, end of year - Exhibit A 2,079,056 (166,272) 1,912,784 285,689 - 285,689 47,468 - 47,468 69,509 -- 69,509 520,120 -- 520,120 145,763 -- 145,763 179,378 - 179,378 45,590 45,590 5,672 5,672 375,968 -- 375,968 16,034 -- 16,034 1,691,191 -- 1,691,191 3871865 (166,272) 221,593 541,842 -446,118 987,960 $ 929,707 $ 279,846 $ 1,209,553 The accompanying notes are an integral part of these financial statements. AGENDA ITEM NO. �•S 6 PACE i i 2003 Temporarily Unrestricted Restricted Totals $ 1,168,498 $ _ 261,000 $ 1,429,498 48,868 59,992 108,860 63,828 557,348 621,176 4,790 20,000 24,790 107,269 -- 107,269 528,669 (528,669) - 1,921,922 369,671 2,291,593 3,368 - 3,368 8,840 - 8,840 12,208 - 12,208 1,934,130 369,671 2,303,801 274,356 - 274,356 75,857 -- 75,857 69,975 - 69,975 420,293 - 420,293 151,414 - 151,414 179,169 - 179,169 44,777 - 44,777 7,471 - 7,471 311,493 - 311,493 17,456 - 171456 1,552,261 - 1,552,261 3813869 3697671 751,540 159,973 76,447 236,420 $ 541,842 $ 446,118 _ $ 987,960 AGENDA ITEM NO. �J PACE 7 T- ALTERNATIVES TO DOMESTIC VIOLENCE STATEMENTS OF CASH FLOWS For the Years Ended June 30, 2004 and 2003 Cash flows from operating activities: Change in net assets - Exhibit B Adjustments to reconcile change in net assets to net cash: Depreciation f IIC • 2004 2003 $ 221,593 $ 794,741 17,365 17,252 (increase) decrease in operating assets: 204,764_ (273,848) Grants receivable 2,668 (123) Prepaids (3,925) (4,002) Deposits 12,461 (178;901) Restricted assets Increase (decrease) in current liabilities: Accounts payable Accrued payroll liabilities Advances on grants Accrued compensated absences Net cash provided by operating activities Cash flows from investing activities: Construction in progress Property and equipment purchases Net cash (used for) investing activities Cash flows from financing activities: Proceeds from credit line/note payable Payments on credit line /note payable Net cash provided by financing activities Net increase (decrease) in cash Cash and equivalents, beginning of year Cash and equivalents, end of year - Exhibit A Supplemental Disclosures of Cash Flows Information: Cash paid during the year for: Interest The accompanying notes are an integral part of these financial statements. 8 265,893 16,758 3,957 20,961 26,506 (15,186) 5,970 6,391 757,252 384,043 I.r+ (1,111,820) (390,092) (16,364) (27,910) (1,128,184) (418,002) 577,953 100,792 (23,934).. (79,786) 554,019 212006 1833087 (12,953) 12,388 25,341 $ 195,475 $ 12,388 $ 14,749. $ 12,024 MENDA ITEM NO. ifs PACCE-OF ALTERNATIVES TO DOMESTIC VIOLENCE 5 __,TEMENTS OF FUNCTIONAL EXPENSES For the Year Ended June 30, 2004 (With Comparative Totals For 2003) Salaries Employee benefits Payroll taxes Donated services Corona Family Preservation Program Professional services Supplies Telephone Postage Occupancy Equipment rental Equipment maintenance ,,Vznting and publishing vel Specific assistance to individuals Organization dues and subscriptions Training Donated facilities and supplies Interest Miscellaneous Depreciation Total functional expenses - Exhibit B 689 $ 47,468 $ 69,509 $ 520,120 $ 145,763 $ 179 The accompanying notes are an integral part of these financial statements. AGENDA 1TEh4 NO. 9 PAM OF --�14 Program Services Family Assistance Horizon Casa Children's Outreach Preservation Needy Families House De Paz Program Services $ 196,682 Project $ 63,640 $ 127,859 $ 164,378 $ 27,693 $ 40,042 10,354 27,984 9,742 20,831 38,383 5,522 1,521 45005 16;733 5,448 11,462 15,873 624 - 2,625 2,496 - - 16,759 - 957 _ 77 214 45,604 8,814 6794 17,209 1,312 1,588 36,793 9,0 13 2,409 722 5,480 3,411 1,544 10,139 458. 203 200 155 5,348 73 5,861 1,517 68,939 19,015 4,378 13,775 1,235 1,475 625 7,392 2,964 914 f 4t 1,519 - 440 1,912 147 78 _- - 1,599 3,128 1,489 _ 2,155 954 1,041 8,408 3,113 3,298 1,677 - - - 94 1,006 - 170 - 16 141 763 - -- 680 344 465 815 12,395 - -- 91,844 250 - 12 10 - _ _ 417 184 218 15 i 8,925 - - 438 689 $ 47,468 $ 69,509 $ 520,120 $ 145,763 $ 179 The accompanying notes are an integral part of these financial statements. AGENDA 1TEh4 NO. 9 PAM OF --�14 AGENDA ITEM No. qS- 10 PAM-, o- .-_.OF Support Services Management Crisis Community and Fund Line Education General Development 2004 2003 $ 25,794 $ 777 $ 211,253 $ - $ 858,118 $ 782,796 8,077 52 22,317 - 143,262 116,767 2,395 - 15,945 - 73,382 67,566 __ -- 5,745 4,790 - _- 16,759 25,863 348 -- 26,080 14,000 102,598 84,014 491 3,492 9,196 -966 80,854 59,303 5,022 - 4,876 - 33,603 33,338 29 207 1,079 873 4,794 4,826. 1,980 - 34,419 - 153,715 141,362 318 206 7,932 80 23,141 217766 150 -- 1,426 - 5,672 1,908 846 616 1,127 - 8,805 9,676 140 -250 6,341 115 25,815 23,500 _ - 1,771 7,484 4,343 -- 5,676 5,377 142 - 3,209 5,921 104,489 107,269 15,862 - 15,884 12,868 _ 72 51628 -- 6,534 18,615 - 8,002 - 17,365 17,252 $ 45,590 $ 5,672 $ 375,968 $ 16,034 $ 1,691,191 $ 1,552,261 AGENDA ITEM No. qS- 10 PAM-, o- .-_.OF ALTERNATIVES TO DOMESTIC VIOLENCE — 'ES TO THE FINANCIAL STATEMENTS June 30, 2004 and 2003 NOTE 1— SAY OF SIGNIFICANT ACCOUNTING POLICIES: General — Alternatives to Domestic Violence is a not - for - profit organization committed ervices and edation. improving the quality of life and creating hope by ending the cycle of domestic violence g Organization operates a shelter, children's program, crisis line and provides outreach services to victims of domestic violence. The Organization's clients are located primarily in Riverside County. Financial Statement Presentation — Financial statement presentation follows e recommendations of he Financial Accounting Standards Board in its Statement for Financial Accounting information ,Statements of Not-for-Profit Organizations. 1Jendac according to 117, three classes to t assets U estricted t asets, regarding its fmancial position and activities g temporarily restricted net assets, and permanently restricted net assets. Income taxes — The Organization is exempt from income taxes under the Internal Revenue Code Section 501(c)(3) and the California Revenue and Taxation Code Section 23701(d). The Organization is not classified as a private foundation. Property and equipment Property and equipment are valued at cost if purchased, or at fair market value at the date of receipt if donated. Depreciation has been computed on a straight -line basis over the useful lives of the assets, ��llows: Building and improvements Furniture and equipment Software 15 to 20 years 5 to 7 years 3 years Restricted and unrestricted revenue — The Organization reports grants and donations as increases in -i :. unrestricted, temporarily restricted or permanently restricted net assets, depending on the existence z. .l .nature of any donor restrictions. When a donor restriction expires, temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statement of activities as net assets released from restrictions. Grants and donations with purpose restrictions that are accomplished during the same year they are received are. reported as unrestricted net assets. Cost - reimbursement grants are considered conditional and the revenue is not recognized until the costs are incurred. Donated services — Amounts are reported in the accompanying statements for voluntary donation of services when those services create or enhance non - financial assets or require specialized skills provided by individuals possessing those skills and which would be typically purchased if not provided by donation. Donated in and supplies — Donated materials and supplies are recorded as contributions at their ate of donation. Such donations are reported as increases in unrestricted net'assets estimated fair market value at the d unless the donor has restricted the donated asset to a specific purpose. Cash balances — The .Organization may, at times, maintain cash balances at various financial institutions with balances in excess of FDIC (Federal Deposit Insurance Corporation) insurable levels of $10000. AGENDA ITEM NU. �� 11 PAOE,-A OF_ ALTERNATIVES TO DOMESTIC VIOLENCE NOTES TO THE FINANCIAL STATEMENTS (Continued) June 30, 2004 and 2003 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued): Use of estimates - Generally accepted accounting principles require management to make assumptions in estimates that affect the amount reported in the financial statements for assets, liabilities, revenues and expenses. In addition, assumptions and estimates are used to determine disclosure for contingencies, commitments and other matters discussed in the notes to the financial statements. Actual results could differ from those estimates. Cash equivalents - For the purpose of the statement of cash flows, the Organization considers all highly liquid debt instruments purchased with a maturity of three months or less to be cash equivalents. NOTE 2 - CONTRACTS AND GRANTS FROM GOVERMENTAI AGENCIES: Contracts and grants from governmental agencies consisted of the following at June 30: Cities: Corona Hemet Moreno Valley Temecula Riverside County of Riverside: Community Development Block Grants Domestic Violence Trust Fund Emergency Shelter Grants Superior Court Office of Education District Attorney Department of Public Social Services Department of Public Social Services - Capit Department of Public Social Services - Anger Management State of California: Department of Health Services - MCH # 00 -90732 (component A) Department of Health Services - MCH # 00 -90638 (shelter grant) Emergency Housing Assistance Program Office of Emergency Services (formerly OCJP) Department of Housing and Urban Development Supportive Housing Program Federal Emergency Management Agency Emergency Food and Shelter National Board Program. . Total grants from governmental agencies - Exhibit B 2004 2003 $ 51,911 $ 51,173 4,000 3,000 10,000. 3,303 5,000 5,000 74,855 59,996 27,769 29,998 104,248 98,278 17,594 19,982 6,357 9,815 11,470 15,534 10,000 5,000 219,226 212,955 40,628 59,524 44,384 - 153,083 149,576 149,526 150,000 48,000 100,000 173,620 186,534 26,000 261,000. 18,164 8,830 $ 1,195,835 $ 1,429,498 on AGENDA ITEM NO. y� EgNATIVES TO DOMESTIC VIOLENCE Nu f ES TO THE FINANCIAL STATEMENTS (Continued) June 30, 2004 and 2003 NOTE 3 - GRANTS RECEIVABLE: The following represent the amounts due from grants to the Organization at June 30: 2004 2003 Cities: $ 1,000 $ 1,500. City of Hemet 2,530 2,456 City. of Moreno Valley 1,983 16,450 City of Corona 5,654 1,734 City of Riverside County of Riverside: 4,847 2,610 Community Development Block Grant 80,725 86,454 Department of Mental Health (MCH) 7,621 -- Department of Public Social Services 19,539 18,745 Domestic Violence Trust Fund 629 1,926 Office of Education 1,121 6,641 Emergency Shelter Grant State of California: 27,487 151,699 Office of Emergency Services (formerly OCJP) _ 100,000 Emergency Housing and Assistance Program $ 153,136 $ 390,215 Total grants receivable - Exhibit A NOTE 4 PROPERTY AND EQUIPMENT-: Property and equipment were comprised of the following at June 30: Land Building and leasehold improvements Equipment Office furniture and equipment Subtotal Less accumulated depreciation Total property and equipment - Exhibit A 2004 2003 $ 35,000 $ 35,000 223,186 223,186 43,448 43,448 175,789 159,425 477,423 461,059 (349,805) (332,440) $ 127,618 $ 128,619 AGENDA ITEIA w. Ac 13 PACE JYJ6 OF ALTERNATIVES TO DOMESTIC VIOLENCE NOTES TO THE FINANCIAL STATEMENTS (Continued) June 30, 2004 and 2003 NOTE 5 – NOTE PAYABLE: At June 30, 2004 the note payable is as follows: Premier Service Bank Unsecured note dated July 11, 2002. Principal and interest payable in monthly installments of $2,355. Bearing interest at 8% per annum, maturing July 11, 2006 Total note payable - Exhibit A Current Long -term Total $ 26,847 $ 2,339 $ 29,186 $ 26,847 $ 2,339 $ 29,186 NOTE 6 – OPERATING LEASES: The Organization has three ongoing lease commitments for the Riverside business office, the Temecula outreach office and for their Corona office. The Organization also has one equipment lease commitment. The Riverside business office lease has expired. The landlord is accepting rent on a month -to -month basis pending the sale of the property. -.MOP The Temecula office lease extends through January 2006. The lease payments are approximately $1,856 per month through January 2005 increasing to approximately $1,931 per month through January 2006. The Corona office is being leased for approximately $2,400 per month. The lease is renewable annually on September 30_ The Hemet office lease extends through March 2006. The lease payments are approximately $480 per month through March 2005 increasing to approximately $499 per month through March 2006. The equipment lease is for two Sharp copiers. The lease is for a period of 60 months at a minimum rental of $1,344 per month. This lease includes a monthly copy allowance, supplies, and maintenance- The agreement expires in October 2006 Future minimum lease payments are as follows: 2005. 2006 2007 Thereafter Total June 30 $ 51;768 34,132 6,718 $ 92,638 AGENDA ITEM 14 FAQ`"'" 7— OF-- -� =+--.. TERNATNES TO DOMESTIC VIOLENCE Ivy ,ES TO THE FINANCIAL STATEMENTS (Continued) June 30, 2004 and 2003 NOTE 7 — TEMPORARILY RESTRICTED ASSETS: Temporarily restricted assets are available for the following purposes: 2004 2003 $ 1,825 $ 2,500 Pacific Bell -. Midcounty Outreach 80 80 K. M. Herbert - Midcounty Outreach -_ 122 Miscellaneous donors - Midcounty Outreach 500 500 Soroptimist of Hemacinto - Midcounty Office 200 200 Soroptimist of idyllwild - Midcounty Office Banning/Beaumont Outreach 1,477 1,477 Sun Lakes Country Club - 85 340 Citigroup Foundation - Midcounty Office 5 5 Casa Del Rae Park - Midcounty Outreach _ 7,234 Wells Fargo Foundation - Aftercare @ Shelter 50 113 National Charity League, Inc. - Children's Outreach - 343 Moms Club of Temecula Valley - Temecula Children's Program 11 36 Sandra Kaye - Corona Children's Program 50 50 Inside Plants, Inc. - Corona Children's Program — 162 Quilter's Guild - Corona Outreach _ 22 Venture Club - Corona Outreach 100 Susan E. Wakefield - Corona Outreach 250 B McCune - Corona Outreach _ 394 CCUL Tri- County Chapter - Corona Outreach — 298 St Thomas Episcopal Church - Temecula Children's Program 1,554 2,576. North County Times Charities -. Temecula Children's Program 21 1,000 Wal -Mart Foundation - Corona Outreach — 10,120 Philip Morris "Doors of Hope" grant - Southwest County 855 2,500 in -N-Out Foundation - Children's programs — 275 Several individual donors - Temecula Outreach 508 900 Inland Empire Quilters Guild - Corona Outreach 1,000 1,000 Soroptimist of Corona- Corona Outreach 376 — Joseph G. Nevarez - Temecula Outreach g Temecula office Howard Roofing Company -Water dama e@ 162 — — 1,495 United Way Priority Venture Grant 178,780 165,908 Grants and contributions -Casa de Paz 187,539 200,000 Total restricted assets - Exhibit A Temorarily restricted receivables (Note 10) - Exhibit A __ 92,307 186,126 59,992 Promises to give (United Way of the Inland Valleys) - Exhibit A restricted assets - Exhibit A 279,846 $ $ 446,118 Total temporarily y-1 15 PACESSf t.,_OF.� ALTERNATIVES TO DOMESTIC VIOLENCE NOTES TO THE FINANCIAL STATEMENTS (Continued) June 30, 2004 and 2003 NOTE 8 —NET ASSETS RELEASED FROM RESTRICTIONS: Net assets that were released from restrictions by satisfying the restricted purposes: 2004 2003 United Way of the Inland Valleys $ 59,992 $ 55,348 Temorarily restricted receivables (Note 10) - Exhibit A 186,126 -- Restricted contributions expended currently 233,276 473,321 Net assets released from restrictions- Exhibit B $ 479,394 $ 528,669 NOTE 9 — CONSTRUCTION IN PROCESS — NEW SHELTER: The Organization is continuing the process of the construction of the new shelter scheduled to open in 2005. During the year disbursements were made and services were donated for professional services that included architects and contractors, permits, insurance and miscellaneous costs directly related to construction. These services and costs have been capitalized and will continue to be accumulated until the shelter is put in service, at which time these services and costs will be transferred to property and equipment where they will be depreciated. The donated services that were capitalized amounted to approximately $160,000. NOTE 10 ADDITIONAL TEMPORARYLY RESTRICTED RECEIVABLES (2003 on YY During 2002 /03 fiscal year the Organization has had an unusual increase in grant receivables due to the processing problems of reimbursement requests from the State of California. Due to this cash short fall . the organization used cash funds from the._California-Endowment Fund restricted for the construction and operation of the new shelter (Casa de Paz). The Organization is reporting a portion of grant receivables from tlie'State'of California-as temporarily restricted to cover the restricted funds from the California Endowment Fund. The amount of temporarily restricted receivables recorded is $186,126. NOTE 11— SUBSEQUENT EVENT: On October 15, 2004 the Organization has sold there existing shelter facility in anticipation of the opening of their new shelter facility early in 2005. AGENDA ITEM Nct. yS 16 PACE _OF ALTERNATIVES TO DOMESTIC VIOLENCE S -DULE OF EXPENDITURES OF FEDERAL AWARDS For the Year Ended June 30, 2004 Federal Grantor Pass- through Grantor Program Title U.S. Department of Health and Human Services: State of California pass - through programs: Domestic Violence Assistance Program Office of Emergency Services (formerly OCJP) Riverside Co. Department of public Social Services Temporary Assistance for Needy Families Total U.S. Department of Health and Human Services ,�L,S. Department of Housing and Urban Development: ipportive Housing Program Pass- through the following government entities: Community Development Block Grants Riverside County: Economic Development Agency Emergency Shelter Grant Program City of Riverside City of Corona City of Hemet City of Moreno Valley Total U.S. Department of Housing and Urban Development Federal Emergency Management Agency Emergency Food and Shelter National Board Program Total expenditures of federal awards Schedule 1 Federal Pass- through CFDA Grantor's Number Number Expenditures 16.575 DV02161194 $ 24,492 93.671 DV02161194 16,228 16.588 DV02161194 1,352 16.575 DV03171194 71,649 93.671 DV03171194 52,108 93.558 C00440 -00 219,226 385,055 14.235 B -01 -SP -CA -0107 26,000 14.218 0.586 ESG MC -06 -0561 MC -05 -0573 MC -06 -0579 MC -06 -0567 27,769 17,594 54,857 21,707 4,000 10,000 161,927 83.523 18,164 The accompanying notes are an integral part of these financial statements_ 17 $ 565,146 AGENDA ITEM %U. PA04ju cOf__�(( ALTERNATIVES TO DOMESTIC VIOLENCE OFFICE OF EMERGENCY SERVICES - SCHEDULE OF GRANT REVENUE AND EXPENDITURES For the Year Ended June 30, 2004 Grant Number Comprehensive County -Wide Services: Grant revenue Matching funds Total revenue Grant expenditures: Personnel Services: Salaries Employee benefits and taxes Operating expenses: Audit fees Payroll processing Shelter food Office supplies Postage Program supplies Communications Space fees Utilities Insurance Facilities maintenance Printing Equipment maintenance Travel Meetings /conferences Miscellaneous Total operating expenses In -kind match expenses: Salaries and benefits Total in -kind match expenses Total grant expenditures Excess of grant revenue over grant expenditures Schedule 2 DV02161194 DV03171194. 45,078 $ 130,270 9,393 29,550 54,471 159,820 29,507 79,919 7,436 23,977 1,577 887 116 227 835 2,269 568 1,723 128 573 503 778 982 3,244 502 2,106 1,104 2,509 — 1,238 309 907 - 4,665 537 1,829 534 2,076 151 326 289 1,017 45,078 130,270 9,393 29,550 9,393 29,550 54,471 159,820 The accompanying notes are an integral part of these financial statements: d4GE19iA 1EAtl 18 PACE OF �,_y`A�gx EE & A�SSOCiA -zFES, CPAS A LIMITED LIABILITY PARTNERSHIP ROLAND H. CRAETREE (1917 -1990) C i A SM Tha CPA N• r.Und.r tim ,. Th. Varues" November 10, 2004 ). MICHAELTWEEDLIE, C.PA -' GREGORY A. SEIGLER, C.P.A. ' SANDEE M.T WEEDLIE, C.P.A.' VINCENT R AMATULL11 C.P.A.' STEVEN J.TWEEDLIE, C.P.A_* SHAREHOLDERS OF PROFESSIONAL CORPORATIONS INDEPENDENT AUDITORS' REPORT ON COMPLIANC��CIALO STA'T'EMENTS PERFORMED IN FINANCIAL REPORTING BASED ON AN AUDIT O ACCORDANCE WITH GOYERIV1ENTAUDITj7VG STANDARDS To the Board of Directors Alternatives to Domestic Violence Riverside, California We have audited the financial statements of d N es 0�2004c We conducted our daudit �in accordance June 30, 2004, and have Issued our report thereon dated e United with auditing standards generally accepted in th s ted by ° the Comptroller rGeneral of the l United State c of States contained in Government Auditing Stan dar , America. COMPLIANCE As part of obtaining reasonable assurance about whether f Alternatives compliance Domestic th certain proovisions of lawsl statements are free of material misstatement, we performed b regulations, contracts, and grants, noncompliance e ance with which could have a direct and .material effect on th re determination of financial statement amounts. However, providing anhOpan o° on compliance with of ur tests provisions was not an objective of our audit, an accordingly, we do not express P . no instances of noncompliance that are required to be reported under Government Auditing Standards_ INTERNAL CONTROL OVER FINANCIAL REPORTING In planning and performing our audit, we considered Alternatives to Domestic eof expressing sing our opinion On the P _ financial reporting in order to determine our auditing procedures for p financial statements and not to provide assurance on not necessarily of Over all matters in the internal control oover the internal control over financial reporting would which the design or financial reporting that might be material weaknesses. A material weakness is a condition III operation of one or more of the internal control component al fl otanrc a,e�ents being audited may occur and misstatements in amounts that would be material a relation performing not be detected within a timely period by emplooVei � n ial reporting and�ts °P r h° that we conssidertobe material noted no matters involving the internal control weaknesses. This report is intended for the information deed to and ho should notbeused,by anyone other than these specified parties.s and pass - through entities and is not intended to Certified ified Pubh .c Accountants AGENDA ITEM NO. HONE (909) 352 -0255 • FAX 10020 INDIANA AVENUE, SUITE 211 - RIVERSIDE, CALIFORN14 92503 - TELEP (9 pp � CRABTREE & ASSOCIATES, CPAS A LIMITED LIABILITY PARTNERSHIP I CAEL TWEED LIE, C-PA.' V J. M I-i ROLAND H. CRABTREE (1917 -1990) GREGORY A. SEIGLER, C.P.A- ' SANDEE NI.T WEEDLIE, C_P.A.- VINCENT E AMATULLL C.P.A.' SM STEVEN J.TWEEDLIE, C.P.A.' fA� CP/ \ S11AAEH01_DENS OF PROFESSIONAL The GPA Never Uny eclimele The Vefue"' CORPORATIONS November 10, 2004 REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE OMPLIANCE IN AOCCORDANRCE V ITD CONTROL 13 3 OVER C MB CIRCULAR A - To the Board of Directors Alternatives to Domestic Violence Riverside, California COMPLIANCE We have audited the compliance of Alternatives to Domestic Violence with the t yp s of o p l fiance requirements described in the US. Office of Management and Budget (OMB) Circular that are applicable to each of its major federal programs forme year of auditors' 2004. n of Alternatives e accompanying Violence's major federal programs are identified li the summary schedule of findings and questioned costs. Compliance the responsibility of Alternatives of Domestic contracts, lence's requirements of laws, grants applicable to each of its mayor ,federal programs management. Our responsibility is to express an opinion on Alternatives to Domestic Violence's compliance based on our audit. We conducted our audit of compliance in accordance om�� � Government Auditing Standards�i sued by States of America; the standards applicable to financial audits and OMB Circular A -133, Audits of States, Local the Comptroller General of the United States of America; Governments, and Non - Profit Organizations• whether non standards liancedwithEthe types of compance requirements eferred audit to obtain reasonable assurance about p to above that could have a direct and material effect ts to Dom stic Violence's oco compliance with those requirements on a mdjor federal examining, on a test basis, evidence about and performing such other procedures, as we considered audit doers not provide aclega d termination of Altema ves audit o provides a reasonable basis_ for our opinion. Domestic Violence's compliance with those requirements. In our opinion, Alternatives to Domestic Violence complied, in all material respects, with the requirements referred to above that are applicable to each of its major federal programs for the year ended June 30, 2004. 'A AVENUE, SUITE 211 • RIVERSIDE, CALIFORl � 92503 • TELEPHONE (909) 352 -0255. • FAX O Ioo2o INDIAN ALTERNATIVES TO DOMESTIC VIOLENCE .;PORT ON COMPLIANCE (Continued) IANCE INTERNAL CONTROL OVER COMPL The management of Alternatives to Domestic Violence laws, re ulations, contraclts, and grants applicable Th g effective internal control over compliance with the requirements of a g to federal programs. In planning and performing our could have andire t and mae Alternatives al .effect n atmajor ofederal audit, we P internal control over compliance with requirements that Pro am in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A -133. the Our consideration of the intern al control over compliance al weakness i necessarily condrt onisinowh which the design or internal control that might be material weaknesses that operation of one or more of the internal control components regules not ations, contracts, and grants thatlwould bethmateriall in P timely noncompliance with applicable requirements ed laws, regu relation to a major federal program being and may functions aWennoted no matters within involving the pint internal control over in the normal course of performing their assigned fun compliance and its operation that we consider to be in weaknesses. SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS of and for the year ended We have audited the financial statements of Alternatives to Domestic uur audit w performed or the purpose 3 0, 2004 and have issued our report thereon dated November 10, 2 xP jrming an opinion on the financial statements taken as a whole. The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by OMB Circular lures and is not a required part of the financial statement. Such information ion, isfa 1 stated, subjected n all material respects, inr elation to the lfinanc al audit of the financial statements and, on our opmron, Y statements taken as a whole. is intended for the information- the audit committee, management, and federal awarding agencies This report and pass- through entities and is not intended to be and should not be used by any other than these specified parties. 6dL, I dC4�� Certified Public Accountants AGENDA ITEM Nil. yI 21 PAGE, OF 3) t�= ALTERNATIVES TO DOMESTIC VIOLENCE SCHEDULE OF FINDINGS AND QUESTIONED COSTS For the Year Ended June 30, 2004 SI.IMMA[RY OF AUDITORS' RESULTS Schedule 3 1. Based on our audit of the financial statements of Alternatives to Domestic Violence as of June 30, 2004, we issued an unqualified opinion in our report dated November 10, 2004. 2. The audit did not disclose any noncompliance, which we believe to be material to the financial statements of Alternatives to Domestic Violence. 3. Based on our audit on compliance for each major program of Alternatives to Domestic Violence as of June 30, 2004, we issued an unqualified opinion in our report dated November 10, 2004. 4. The audit did not disclose any findings relative to the major programs for Alternatives to Domestic Violence. 5. The programs tested as major programs included: Riverside Co. Department of Public Social Services Temporary Assistance for Needy Families — 93.558 6. There are no Type A programs 7. . Alternatives to Domestic Violence did qualify as a low -risk auditee under Section 530. FINDINGS — FINANCIAL STATEMENTS AUDIT None FINDINGS AND QUESTION COSTS — MAJOR FEDERAL AWARD PROGRAMS AUDIT None N%wor N./ The accompanying notes are an integral part of these financial statements. ACEKDA ITEM H0. Lly�� —�� 22 PACE -a5a --OP Schedule 4 TERNATIVES TO DOMESTIC VIOLENCE S,�, EDULE OF PRIOR FINDINGS — FINANCIAL STATEMENTS AUDIT For the Year Ended June 30, 2004 03 -1 Restricted Assets Findin In the reconciliation of restricted assets it was found t1Q California Endowment Fundp forrtthe eCasa de Paz The Organization brought to our attention that funds from u oses_ This was done without prior construction project and other donor restricted projects were used for operating p rp from the affected agencies or donors. These funds were used due to the delay in receiving re approval imbursement requests from State of California agencies. Recommendation: sources be secured to handle We recommend that reserves be established or alternative short -term funding encies. We also recommend cash fluctuations caused by delays in funding n reimbursement oses that the agencies affected be contacted in advance bo that if restricted funds are going to be used for unrestricted P their approval. Subsequent to the date of these financial statements The California Endowment was noted about for PP the use of these restricted funds and had raised no objections. ManagemenYs Response: b a delay in receiving The shortfall in the money market account for restricted fundslttuation, and was stated, tified when the funds were payment from two State of California agencies. This was a temporary subsequently received as follows: $ 91,592 received on 7/10/2003 from the Offico of Criminal alg tad Assistance Program $100,000 received on 10/06/2003 from the Emergency pen Jul 1, 2003 and September 30, 2003 a total of $182,384 was spent for Casa de Paz construction Betw Y . Between allowed by the grant from The California Endowment expenses also allowed by The California Endowment additional $111,016 was spent for Casa de Paz construction 000 allowed by the grant for construction expenses has been expended and accounted for to the Thus a total of $400, satisfaction of The California Endowment. We agree wholeheartedly that it is necessary to establish adequate reserves to assure that this situation does not W bons to address this problem by establishing a "bridge fund" for occur again. o The Board of Directors is exploring p just this purpose. hnpl� ementation: Recommendations have been implemented. King The accompanying notes are an integral part of these financial statements. 23 AGENDA ITEM NO. c!`� pAOE o' b OF `�1 - ATTACHIdENT VIII ALTERNATIVES TO DOMESTIC VIOLENCE SOUTHWEST ADVISORY COMMITTEE MEETING NOTES JUNE 9, 2005 Attendees: Wendy Bankston, Nancy Campbell, Holly Chavez, Eliza Daniely- Woolfolk, Thaya Fares, Denise Grandi, Peg Moore, Dana Nye, Max Nye, Peg Raley. Welcome to Barbara Fraler, volunteer. 1. Temecula Outreach - Wendy updated the committee on the Temecula Outreach Program. The CPS referrals are increasing. ADV continues to meet with high school teens on anger management issues. The office is averaging 20 new clients a month and a new Spanish speaking group has been started. Dr. Julie just finished conducting an eight -week psycho - educational session with the groups. PROS (Assistance League) held a fashion show and raised $2,000 for ADV. Wendy continues to work with the DIVERT Team in Lake Elsinor and some referrals have been seen at this office. Staff has attended staff trainings including "Victim To Perpetrator" which was well received. 2. Casa de Paz.- Holly, and the staff are working with 26 clients and 2 more are expected this week. One of the new clients is coming from Oregon to the shelter and Holly gave us a glimpse of the community support that our clients receive to get the help they need. On Mother's Day, Kirstin Wahls from MilkDuds.com and her staff prepared a prime rib dinner with all the trimmings for the shelter families. The shelter still needs volunteers to interact with the clients and be there to give the Moms some relief. Call Holly if you or someone you know can fill this need.. Also, books for children are still a need as is funding for alarm clocks and lamps. Holly expressed a desire to have on -site medical visits for the clients since transportation is a problem. Costs of the medical visits could possibly be reimbursed by Medical. Thaya offered to provide parenting classes- 3. _ 3. Conference 2005 - Nancy and Thaya are finalizing the details for the fall conference to be held on October 19 at the Buchanan Elementary School. The speaker will be Robin Karr - Morse.. There is no cost for admission or the meal. Attendance will be limited to 200 - 225 attendees. Wrap - around booths will be available to organizations and agencies to distribute information on available services in the area The target audience will be families with children under 5 years of age, teen parents, schools and professionals working with this age group. Child care for up to age 12 will be provided free for 75 children. Donated prizes such as gift certificates to local stores are needed for opportunity drawings. CADA will again handle the registration and contribute $800 toward the cost of the speaker. ADV will provide duplication services. Three flyers will be generated in English and Spanish: 1) - Distribute early July - A detailed flyer to professionals and agencies with a cover letter and registration form for attendance of up to 2 and reservation of a booth. 2) -Early July.- A specific flyer with a cover letter to educators to identify parents who should attend. 3) -J" week of September - A "family friendly" flyer with registration form. Registration deadline is October 14, and ADV needs to order the food from Oscar's by AGENDA ITEM NO. �% PACE. 25rl OF October 17. Jeff Stone will be invited to introduce the speaker. A four - minute film, "Concrete Angel" by M. McBride, will be shown during the meal time 4. The Starlight Serenade will be held in a beautiful Riverside home on June 18. RSVP by June 13 to 951/320 -1370. This is one of the fund raisers for this year. 5. The Pregnancy Resource Center is now thexsbfather aped extended fa�mili SterCprovides l 951/245 - counseling and information for expectant 8587 for more information. PLEASE MARK YOUR CALENDARS FOR OUR NEXT MEETING: THURSDAY, AUGUST 11, 2005 9:00 A.M. L,YNDIE LANE OFFICES IN TEMECULA 506 -2552 AGENiDA ITEM NO. YS CDBG APPLICATION #11 AGENDA ITEM 140 . 445- PAM,_� OF Jl Electra Demos Since establishment, this organization has grown as the needs of the valley Secretary have grown. We welcome a visit from you any time to tour our facilities and see first hand how our program is working. I think you will find it Carol Brady worthwhile in evaluating our proposal. Treasurer Jean Clower Sincerely,,,/ Education Brenda Hamilton Public Relations Lyn Metzler President Margo Doski Connie Longway Thrift Shop Encl. Rosemary Dileo Chapter House Manager Carol Thomas Liaison to Auxiliaries '8720 Via Montezuma Temecula, CA 92590 -2510 TeL (951) 694.8018 Fax (951) 694.8298 QGENC)A 11 "L-I) www. temeculavalley _assistanceleague.org PA(E--� !F 'a s' November 28, 2005 9005 Mr. David W. Sapp ' :r.t �, �''' league* Director of Community Services assistance Temecula Valley City of Lake Elsinore 130 South Main Street Lake Elsinore, CA 92530 Executive Board Dear Mr. Sapp, 2005-2006 Thank you for the opportunity to submit this application for funding under Lyn Metzler the Community Block Development Grant. These funds are used to assist President with the clothing of needy children who live in the Temecula Valley through our philanthropic project, OPERATION SCHOOL BELLO. Rita O'Neill 1st Vice President This past year the ASSISTANCE LEAGUE® of Temecula Valley through OPERATION SCHOOL BELL was able to clothe 1148 children from Dena Nye Southwest Riverside County. At the request of public school teachers and 2nd Vice President administrators we are now clothing pre school children in Head Start, Even Start and Healthy Start programs as well as children in K through 8a' Mary Eusey grade. We are pleased to expand our service but it has really stressed our 3rd Vice President budget to accommodate these families. Electra Demos Since establishment, this organization has grown as the needs of the valley Secretary have grown. We welcome a visit from you any time to tour our facilities and see first hand how our program is working. I think you will find it Carol Brady worthwhile in evaluating our proposal. Treasurer Jean Clower Sincerely,,,/ Education Brenda Hamilton Public Relations Lyn Metzler President Margo Doski Connie Longway Thrift Shop Encl. Rosemary Dileo Chapter House Manager Carol Thomas Liaison to Auxiliaries '8720 Via Montezuma Temecula, CA 92590 -2510 TeL (951) 694.8018 Fax (951) 694.8298 QGENC)A 11 "L-I) www. temeculavalley _assistanceleague.org PA(E--� CD6G Application from the ASSISTANCE LEAGUEO of Temecula Valley PROPOSAL NUMBER Date Received City of Lake Elsinore COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM APPLICATION FORM 1. GENERAL INFORMATION: Name of Primary Activity Sponsor: ASSISTANCE LEAGUEO of Temecula Valley Mailing Address: 28720 Via Montezuma Temecula California 92590 Telephone Number: (909) 694 -8018, Fax (909) 694 -8298, General (909) 694 -6594, Operation School Bell Contact Person: Lyn Metzler, President, Tel: (951) 696 -1143 Address: same as above Amount of CDBG Funds Requested: $10,000 `../' Where will the activity occur and what is the geographic scale of the proposed activity (community, city,` and region), be specific? The actual clothing of the children takes place at our facility in Temecula. The program benefits children in all four school districts in Southwest Riverside County: Temecula, Menifee, Murrieta and Lake Elsinore. Operation School Bell benefits more than one supervisorial district. The project is primarily conducted in District l; it may benefit District III peripherally 11. ORGANIZATIONAL HISTORY: (This is applicable only if you are a non - profit organization). Please provide a list of your current Board of Directors (Label as Attachment 11). Date Organization founded: 1989 Date Organization incorporated as a non - profit organization 1989 Number of volunteers 231 Number of paid staff none Federal identification number 33- 0360419 State identification number 1463456 AOI NDA 11 LW NV. `�S N%Nol s-�, CD13G Application from the ASSISTANCE LEAGUE@ of Temecula Valley History and Membership The ASSISTANCE LEAGUEO of Temecula Valley (ALTV) is a chapter of the NATIONAL ASSISTANCE LEAGUED (NAL). It was chartered by NAL in May 1992. NAL and its chapters hold 501(c) -(3) status and each chapter is separately incorporated. Articles of Incorporation were filed with the State of California on June 15, 1989 and refiled when the organization became a chapter in 1992. Copies certifying the chapter's status are attached as Attachment IIA. A list of the Board of Directors is also attached as Attachment IL Officers are elected in April of each year and the President appoints supplemental board positions. A short history of the chapter is also enclosed. The first project initiated by the new chapter in 1989 was Operation School Bell. A description of the service to be provided was presented to officials of the Temecula School District, the Murrieta School District, and the Lake Elsinore School District and agreements were established to provide new clothing for children who are certified by the school principal as needy. National guidelines are provided from NAL. More than 40% of the children clothed in the Elsinore School District are certified by the school district as eligible for federal poverty programs. Current statistics provided by the schools show that approximately 95% of the children clothed are on the federal school lunch program. The Assistance League of. Temecula Valley does not screen children or discriminate on the basis of race, religion, gender, sexual preference, or marital status of the parents. Any child referred by a public school official is clothed. Principals, teachers, school nurses, and administrators usually make recommendations concerning the need to clothe a child. The Student Services departments of the local school systems are the most frequent points of referral. The criteria used by the school officials are based on perceived indications of need or calls indicating an emergency situation. Teachers know when a child comes to school every other day because a sibling is using the only clothing available. For many of the children a visit to Operation School. Bell provides the first new clothing they have owned. For the past several years, the Operation School Bell chairman has spent many hours meeting with school nurses, principals and teachers to discuss their needs and our documentation and permission system. These meetings have been very valuable in assisting school personnel to identify the most needy children. Without their active cooperation and their dedication, the clothing program would not be so successful. Each year, some of our members visit with all health clerks in the 50+ schools we serve in order to increase the awareness of our program and improve communications between the schools and ALTV. This has helped to increase the number of children served so far this year. We have worked closer with the health clerks and school officials to help reduce the number of no shows to the clothing appointments. Autt,4 A c ENE, 14 U. yS CDBG Application from the ASSISTANCE LEAGUE® of Temecula Valley NUMBER OF VOLUNTEERS: 52 Active Members 10 Active /Limited Members 18 Provisional Members 42 ASSISTEEN Members 20 Associate Members 10 Community Associate Members 19 Sustaining members 18 PALS - Partners of Assistance League 37 PROS- Professionals Offering Service 6 Life 231 Total An Advisory Committee consisting of community men and women with special skills advises on legal, building, financial, and community matters. This committee of volunteers meets as needed. In the fiscal year, which ended May 31, 2005, the members contributed over 26,000 hours of service to the chapter during the 2004 -2005 year. Active members must attend seven of the ten monthly meetings (and a monthly board meeting if the member serves on the Board of Directors). Active members must work at least one day a month in CastAways Thrift Shop, which is the primary source of income for the philanthropic work of the chapter. Members work five days per year dressing children in Operation School Bell. OSB committee members purchase clothes, maintain the inventory, sort, tag, and complete paperwork. All active members also staff CastAways at least one day a month. Since the new shop was opened the chapter has received many furniture donations, resulting in the purchase of ,„rr a large truck last year to transport the donations. Active members must also support fund raising events voted by the members as "required ", pay their dues, and make other financial contributions as decided by the regular voting members. They may volunteer to assist on other projects such as fund raising events, parades, etc. as well as serving on various committees required to administer the chapter, for example, budget, finance library, education, and philanthropy. The Thrift Shop is open Tuesday 2 p.m.tp 7 p.m.. Wednesday through Friday 10 a.m. to 3 p.m., and Saturdays 11 a.m. to 2 p.m. Provisional Members are first year members. They have the same requirements as active members plus some additional training hours and meetings. Associate members provide financial support to the chapter and may work on special projects; however, this is not a requirement. An Associate member must have been a regular member for 3 years and must be in good standing when the change in status is made. "Good Standing" = required hours fulfilled; attendance at meetings fulfilled; financial obligations fulfilled. Assisteens are high school students in the 7th to 12`h grades. They are required to raise funds to support their philanthropy (purchasing books for OSB children), work in the thrift shop on Saturdays with their parent, and assist in chapter and community activities. Again this year the Assisteens helped with fund raising activities. Assisteens also serve as hostesses at community projects. They also host community projects such as their Pumpkin Painting Project in October at the Chapter House, where children from the community are supplied pumpkins and paints to �r decorate their pumpkins with the help of the Assisteens. The members learn how to conduct a meeting, keep an accounting of money earned and disbursed and teamwork. Auti DA i UE i iKV. `N IMAGE -aJ?-3 OF 3--�- l4- CDBG Application from the ASSISTANCE LEAGUE® of Temecula Valley Community Associates participate by giving money and participating in fundraising events. They are not required to work in the thrift shop or on philanthropic projects. PALS is a category of membership which reflects the growth and stability of our chapter. PALS represents Partners of Assistance League. PALS is composed of husbands and older children of members who help with various activities. In the past years husbands have given hundreds of hours of time in construction, sorting, pick -ups, deliveries and advising. With the addition of the PALS category we now have a mechanism to count their in -kind service. A corollary of Assisteens, the informal group of teenage males provides high school students a chance to complete their required service hours as well as help ALTV. PROS is a membership category that has been started for professional individuals who want to help and contribute to the needy children in the Temecula Valley. Because of their professions they cannot maintain the hour commitment required by the regular membership. These individuals help at CastAways by maintaining the boutique shop, sorting and pricing clothes. The philanthropic project of PROS consists of work with Alternatives to Domestic Violence. ADV refers their clients for a shopping experience at Castaways to meet their clothing or household needs. PROS members meet the client at the thrift shop and conduct a confidential shopping session. LIFE Only the board may grant life membership to a member who has completed 15 years as an active member in good standing. A Life member may participate in chapter philanthropic projects and fundraising activities and serve on chapter committees in a non voting capacity. le__ Attach: ARTICLES OF INCORPORATION AND BY -LAWS (Label as Attachment IIA) III PROJECT ACTIVITY: This project is identified as a public service. Operation School Bell serves a limited clientele of moderate and low- income children. In the spring of 2004 pre - school children in Head Start, Even Start and Healthy Start programs in the Valley were made a part of OSB. We went to the individual school sited and dressed the children there. Now we are scheduling the children to be brought to our site by their parents on selected Mondays, Tuesdays or Saturdays. This allows the parents to participate in the selection of clothing just as the parents of K through 8th grade parents do. This project has added to out philanthropic program, bringing our OSB budget total to 132,400. IV. PROJECT NARRATIVE: A. Name of Project_ Operation School Bell Specific Location of Project: 28720 Via Montezuma Temecula CA 92590 r., The geographic area to be served is the Temecula Valley with children attending schools served by Murrieta School District, Lake Elsinore School District (includes Wildomar and Canyon Lake), Menifee School District, and the Temecula School District. Children from unincorporated areas in Riverside County attend school in all of these districts. The Menifee School District was added in 1997 after requests were made to ALTV concerning needy children in public schools. Ac NDA I s M NO. �t5 p F:,:,- Z- �OF 3 4 CDBG Application from the ASSISTANCE LEAGUEO of Temecula Valley B. Detailed description of use of the funds.- 1. The clothing provided each child at Operation School Bell is brand new. Each child receives a pair of high quality leather shoes, six pairs of socks, six pairs of underwear, three T- shirts or blouses, three pairs of jeans, slacks, a jacket, a sweatshirt, and a backpack containing notebook, pencils or pens, and a complete hygiene package including, shampoo, soap, hair brush or comb, toothbrush, and toothpaste. They get a large white bath towel. A reading book selected by the child (provided by the ASSISTEENS) and information about public libraries is also included. Head Start, Even Start and Healthy Start children receive the same clothing and hygiene packet but do not receive a backpack. We have budgeted a cost of $100 per child, however with careful purchasing, we hope to maintain the quality of clothes we purchase and be able to increase the number of children we can serve. In the last fiscal year 1,148 children were clothed. During the current fiscal year the chapter plans to clothe over 1,400 children. The OSB chairman for 2005 -2006, Claudine Duistman, and her assistants have put the inventory record keeping and the log of children on specialty software designed for OSB. It is possible to sort by school as well as track prevalent sizes of clothing, shoes, etc. Often the school /student services personnel appeared more determined than the parents to assure that the children benefited from the service we provide. Occasionally, language appears to be a barrier when a mother arrives without her children, thinking she will pick up the clothing. She is rescheduled so the children have the pleasure of choosing new clothes. Occasionally grandparents arrive, quite unbelieving of the help offered. An effort is always made to show CastAways Thrift Shop to the adults since ALTV provides quality clean used clothing at a very small price (T- shirts are usually 50¢, pants or jeans are $2.00). Our members feel the thrift shop is also a community outreach lvaol service.. They take great pride in providing good used clothing, household items and furniture to people whom cannot afford retail outlets. 2. The Operation School Bell Committee anticipates that over 1,400 children will need clothing during the current 2005 -2006 school year. Funds were budgeted for this goal, including anticipated support from CDBG funds. Children from the Menifee School District will continue to increase as the school personnel learn the value of the program. The number of children being clothed from the City of Lake Elsinore has grown significantly. Last year we clothed over 500 children from the Lake Elsinore School District. The tremendous community support and the success of the thrift shop has made it possible for us to clothe 1148 children last year and increase the number of children helped this year. We are also able to clothe the extremely needy children twice a year. ALTV will clothe children during the summer on an emergency basis. This summer we clothed children that were displaced by the hurricane, Katrina and needed help. Members of the Operation School Bell Committee maintain close ties to the teachers and administrators of the Lake Elsinore School District to identify the needs of the children. The clothing items most needed and provided were established in response to questionnaires and suggestions of school personnel. Further, there is no other agency or program in the Temecula Valley, which provides new clothing and allows the children from pre - school through eighth grade to "choose what they want to wear ". A sample of the new clothing provided is on display in the lobby of CastAwaysThrift Shop at all times and a display board is shown at community events when a member is the speaker. AGENDA ITEM NO 7J __ -- PACE CDBG Application from the ASSISTANCE LEAGUE® of Temecula Valley Members of ALTV believe that a positive self -image is important to young children_ While many �. other chapters of NAL also conduct the Operation School Bell program, many of them buy blocks of clothing to keep the cost of clothing to a low level, especially if they are clothing 1,000 or more. Children dressed in that type of program all wear similar clothes. At ALTV's Operation School Bell, children choose from a large selection of clothing in different styles and colors - just like a department store. By taking advantage of sales, attending wholesale events, and utilizing outlets ALTV provides individually chosen clothing. It is very important to our members that children are proud of their appearance and aren't labeled an "Operation School Bell child" by their peers. The children try on a choice of colors and styles in fitting rooms just like a department store they leave the facility with their clothing in a shopping bag. ALTV members work hard to help children feel as if they had been shopping at a "real" department store. This is important in developing a positive self - image. School personnel make recommendations of colors to prevent gang identification, and on suitable styles. Parents are also consulted as to suitability of clothing, i.e., proper fit, length, etc. The teachers relate heart- warming stories of beaming children who show their new clothes with no hesitation. Children are scheduled for appointments at OSB on Wednesday, Thursday and Friday of each week and are usually accompanied by parent(s) or a relative bringing a signed form from the school and a parent permission slip. Occasionally, a school official or guardian transports the child. Pre - school children are scheduled on selected Saturdays throughout the year. 3. This project benefits children in low- and moderate - income levels. We are required to document those who are on the federal school lunch program. From this we have found that over 90% of our children are from low- income levels. This information is documented and provided to the County. 4. (A) This is not a new service provided. (B) The $10, 000 requested will support an ongoing service. Each year we evaluate the clothing provided to the children, for example last year we added more items to be given to each child. We added one more pant and one more top per child . Middle School boys are now given the choice of boxers or briefs since they are very sensitive. We are now purchasing good quality leather shoes as compared to the voucher program in the past years. Professional hygiene kits and a large white bath towel are now being given out to the children. Some children may be clothed twice a year. Our request is needed to maintain the current level of service and make the necessary additions to the program. Currently, Operation School Bell is booked to capacity until the end of January, as in previous years. The number of children clothed from Lake Elsinore last year was over 500. We anticipate these numbers to continue to rise substantially as our community continues to grow at its current rate. 5.The ASSISTANCE LEAGUE members do not choose those candidates eligible for the benefits of Operation School Bell. The school districts refer children based on their perceived need of the child. The school officials making these referrals could be the health clerk, school nurse, principal, or the child's teacher. Our members are working more closely with the health clerks to ensure the AGENDA 11ENI NO. y5 PACE- oq OF % _ CDBG Application from the ASSISTANCE LEAGUED of Temecula Valley children are being referred. One of our members has visited every health clerk in 50+ schools personally to help increase the awareness of our program and to help ensure the children can get to the clothing appointment. The focus of ASSISTANCE LEAGUE® Of Temecula Valley is to serve . the children based on need and feel that those that represent our school districts are in the best position to know the needs of these children and make fair referrals. 6. The expected results of Operation School Bell this year is to clothe over 1400 children with the best possible clothing to promote better self- esteem and to provide functionality to our children. We have also expanded our program offerings to help promote better health. We at ALTV feel that a better self -image and confidence will enhance the children's ability and aptitude to learn. 7. ASSISTANCE LEAGUE® of Temecula Valley continually tracks our numbers and inventory to ensure we are working towards our goals. The number of children served continues to grow each year. If a child comes to Operation School Bell and they are an unusual size and we do not have something to fit them, it is not unusual for one of our volunteers to go to a local retail store and purchase a special outfit for that child. Having a child who is very large and overweight come in for clothes fitting can be a very humiliating experience for them. We do our best to make these situations pleasant for the child. 8. Operation School Bell is a long -term philanthropic commitment to the ASSISTANCE LEAGUE® of Temecula Valley. . The National Assistance League requires that each chapter maintain a reserve fund equal to one year's activity to assure that funded projects will continue. We have paid off our mortgage and will now be able to allocate more funds directly to our existing philanthropies and begin planning for new philanthropies as needed by the communities we serve. 9. Census tracts served include 427.03, 430, 431.98, 432.01, 432.02, 432.03, 432.04 and 432.05. Map of census tracts. (see attachment IIB) V. PROJECT BENEFIT CATEGORY 1: Benefit to low- moderate income persons B. Limited Clientele: At present, in conformity with our instructions on CDBG grants the volunteers tactfully ask parents about federal programs in which children participate as well as inquiring who is the designated "head of household ". This is acceptable evidence of the poverty level. Our members are reluctant to initiate any action which diminishes the self esteem of the children or parents. Chapter members have discussed this requirement and voted to apply for these funds and meet the documentation guidelines. So far our process is working well. Because ALTV members realize some of the children clothed are not eligible for MediCAL or DentiCAL service we have initiated a dental screening program, called Project: SMILE. Twenty Valley dentists are providing screening and dental care to children in pain referred to ALTV through the schools. As with Operation School Bell, Project: SMILE refers public school children. (See attachment IIC -forms used at OSB) N%.Ior a4i =NDA ITEM NO.-4/15- r-- CDBG Application from the ASSISTANCE LEAGUE® of Temecula Valley it is anticipated that between June of 2005 and May of 2006 more than 1,400 children will be served. The chapter provides, at their expense, the place, insurance, utilities, supplies, but requires $125,000 for clothing. Only children who can be substantiated as low to moderate - income families will be served. Only children between pre- school through eighth grade will be clothed by funds provided by the City of Lake Elsinore. VI. FINANCIAL INFORMATION A. Attached are the following documents: (see attachment IID) 1. Budget for the current year 2005 -2006 2. Income statement through May 31, 2005 3. May 31, 2005 -Year End Financial Statement Budget Summary Total CDBG Funds Requested No personnel costs requested -0- -0- Consumable supplies: $132,400 $10,000 The balance of the budget summary is not applicable. Please note that the National Assistance League requires each chapter to maintain a reserve fund equal to one year's activity to assure that funded projects will continue even if fund raising activities do not produce the required amount. NAL permits chapters to use dollars from limited fund raising events event to purchase a chapter house. Once the budget is met, a portion of the surplus may be used to retire our indebtedness. B. The following funds are currently being applied for: Funding Source Amount Date Available Requested Lake Elsinore CDBG $10;000 Murrieta CDBG $15,000 Temecula CDBG $15,000 County of Riverside $20,000 CDBG Request for summer 2006 Request for summer 2006 Request for summer 2006 Request for summer 2006 Type of Commitment Operation School Bell Operation School Bell Operation School Bell Operation School Bell The chapter's major fund raising event will be held in the spring of 2006. Operation School Bell is dependent on this event for a portion of the clothing funding. The event will again be open to the public at $100 per person. National Assistance League requires that more than 60% of the proceeds go toward philanthropic projects. All active members are required to purchase two tickets. C_ See Attachment IID AGENDA ITUM NO.— Lly 4— FAV_;_a(a_ '%'T CDBG Application from the ASSISTANCE LEAGUE® of Temecula Valley D. This project benefits citizens of more than one community and requests have been made to those cities and /or areas serviced. Please see above. `41011 E. This project was previously funded with CDBG funds from Valley cities as described above. This activity is a continuation of a previously funded CDBG project as explained above. VII. MANAGEMENT INFORMATION A. Ms. Claudine Duitsman is Chairman_ of the Operation School Bell Committee for 2005- 2006- Three volunteers are present on "clothing days" to dress the children and keep records. New software is making it possible to keep a computerized inventory of clothing, a file on each child clothed, and a record of the dates when the child was clothed previously. Three volunteers sign each dressing form. Mrs. Dena Nye is Philanthropy Chairman. She supervises the three philanthropic projects: Operation School Bell, Project: SMILE, Kids On The Block. The Chairman of Philanthropy serves as Second Vice President, which is an elective position on the Board of Directors. All purchase documentation is submitted to the Treasurer who maintains a duplicate record so those invoices can be used for documentation on CDBG contracts. Accounting procedures are reviewed quarterly by McLean & Associates, CPAs. The funds requested will be utilized in the 2006 -2007 school year, primarily from September 2006 through the school year ending in the spring of 2007. B. The role of the ASSISTANCE LEAGUED of Temecula Valley is to serve the children and `',SO families of the Temecula Valley. We have three major philanthropies which we support to achieve these goals: Operation School Bell ®, Kids on the Block and Project: SMILE. In our 2004 -2005 budget we have set up a scholarship fund to be awarded to high school seniors in the Temecula Valley who need financial aid to continue their education. All members are volunteers from the community. Our main source of income, CastAways Thrift Shop, is supported by in -kind donations from the community. ALTV MISSION STATEMENT ASSISTANCE LEAGUE® of Temecula Valley, a chapter of National Assistance League ®, is an ail- volunteer charitable organization serving the families of Temecula Valley. The self - esteem of the child served is raised by providing new clothing through Operation School Bell® and dental care through Project: SMILE. Kids on the Block, a puppet program, teaches self - awareness and improves social understanding. C. Operation School Bell is a continuing project. D. Operation School Bell has received CDBG funding in the past. 7J PA _ CDBG Application from the ASSISTANCE LEAGUE® of Temecula Valley VIII. CITIZEN PARTICIPATION The Assistance League of Temecula Valley members are enormously grateful to the communities served for their support of CastAways by gifts of clothing, furniture and other household goods. In CastAways, goods sold have been entirely donated by our members and community citizens. The proceeds of these sales are committed to support our philanthropies. CastAways continues to be our single largest resource to support our philanthropies. With the purchase of our larger facility we have been able to increase our income and help clothe more children. If we did not have the community's support our thrift shop would not be near as successful as it is. Still, with this income we need grant support in order to achieve our goals of clothing +1400 children this year. Each year we host a meeting for all the health clerks and other interested school officials. This meeting serves to help train the officials on what we do and where we can help. It helps to bring more visibility to our philanthropies to those individuals who are not familiar with us and heighten the awareness of the needs of the children. This meeting is also an excellent forum to get recommendations and suggestions for improvement and change from the school officials to help us serve the children of the valley in the best capacity possible. Our members also attend city council meetings and speak about our philanthropies when appropriate. IX. PLANNING The members of ALTV continue to educate our citizens and public officials on the growing needs of the less fortunate children of our valley. All of our volunteers work hard to promote our philanthropies and to reach out to the needy children. Members of Assistance League of Temecula Valley wish to continue serving the children of the Temecula Valley including Lake Elsinore_ We appreciate the support of the City Council in allocating funds to assist us to this end. To continue to provide our growing and expanding philanthropy, Operation School Bell, we need the support of the City of Lake Elsinore. A_ (iEN A ITEM NO. y`S PACE _OF CDBG Application from the ASSISTANCE LEAGUE® of Temecula Valley APPLICATION CERTIFICATION Undersigned hereby certifies that: r.►+ 1. The information contained in the application is complete and accurate. 2. The applicant shall comply with all Federal and County policies and requirements affecting the CDBG program. 3. The federal assistance made available through the CDBG program funding is not being utilized to substantially reduce the prior levels of local financial support for community development activities. 4. The applicant shall maintain and operate the facility for its approved use throughout its economic life. 5. Sufficient funds are available to complete the project as described, if CDBG funds are approved. 6. 1 have obtained authorization to submit this application for CDBG funding. (ATTACH DOCUMENTATION) TYPE/PRINT name and title Of Authorized Rep esentative Lyn Metzler President Signature of Authorized Re sentative Date November 28, 2005 The following are attached to this application: Yes - X X X X X X No 1) Map of area served 11) Management information 111) Organizational history (Non- Profits only) A) Articles of Incorporation B) Current Board of Directors IV) Income and Expense Statement .+1 ATTACHMENT II 2005 -2006 BOARD OF DIRECTORS J PACE_. -0F___ ASSISTANCE LEAGUE OF TEMECULA VALLEY N"We BOARD OF DIRECTORS 2005-2006 PRESIDENT Lyn Metzler 1s; VICE PRESIDENT Rita O'Neill 2ND VICE PRESIDENT Dena Nye and VICE PRESIDENT Mary Eusey SECRETARY Electra Demos TREASURER Carol Brady EDUCATION Jean Clower PUBLIC RELATIONS Ruth Dugue Brenda Hamilton THRIFT SHOP CHAIRMAN Margo Doski Connie Longway CHAPTER HOUSE CHAIRMAN Rosemary Dileo LIASON Carol Thomas llq r AGENDA ITEPA NO. L115- PACE OF_ ./"_ ATTACHMENT 11 A ARTICLES OF INCORPORATION AND BY -LAWS ALPLN10. ETUA [VO. 1/5- -6ERV,- Ct or zlm - rxx" DISTRICT DXP2CTLR -2 CUPARIA djRCJ-X HM-UREY PARK. CA -91755-7-;oZ Date; 3-0360415 Icsse W-niber: 956044080 Coat-act Pcrsoaz VALLEY TYRONE Tuarms PO WX 2212 Contact Telephone lih.-mber: 92390 (213) 894-228S Our Letter' Datedz Addendum J%PPI ie3: NO This mO-4-S fies Our letter of the above date in joh..-ch _-_ !G:ratad Uduld--be txeated.az that you &= OrSanizP-tIOU azat in not, & Private 03wization Of Your Advance rk-.:L!=ff Fex;ijD'4. 4=1 until the Y4*t= e-XeW4Vt *tatua under sect:Eap sol(jL) 0,,r the Interna% Re. Code x3 organizat-10M described Im section $02 (c) (3: is Still In effecr_- Epsed 0- the 3'z60==tiA= Y*u r-r-1-mItted, we tiLve 'F-4tercdm*d that you are not & __v- , "Un"tIOU within. the Weaning of ZeCtjCn E0qj&11 P'.4 osQaaisatiois of of tl- Code bec&uzz Yote u awe an Llhe. r-ypa 8ercribed in sect (A't (:2) a and c9=t--amr-Ox-5 ,y rf-'Iy On this detexxt-ratickc, unless the Internal "Verne service publish., notle-e- to t-z-L" pont-riLry- (a) (2) arA tau, grantor Or �Xmtributar Rovever.. if YOU' - =ay not rely gra W dates aatieet if he or 01-JUD in pa--t the act or railure to act, or ci-.4e cub&taztia_v or ft&j :for, 0x* w" ti+ars of. the 0xq=dzat1C= that reaUted in yw= loss.,of r 'erial ch8mve On ZrA part of acodre-d ImawleftQ, tk4t the interact?. jeVen'U'a St. such stat.Ls, or If be or bhe _h .rjCe _ would no Unger be classified as a sect' ' _a SIV= aCZjCe#th&t YOU M organizakt4 *n. If we have -1AdJO&ted in the heading of •h's letter thut an addendum applIAP-S., the addendum e-.jCjos.qd in a of this lett,&--. 3340C&Ube thiS Tester. COU1.6 )^3p any questiong bUU_v O ux private states. Zf YOU have any qcest%onz. please tQlCw ftUaber are jsk_.;w_- &j.,ove. contact thft Person wbcz� and *Fh sincer F I .S.LV, ►oum. rUiChard R. or"co Diattict Director Letter 2050 wo/cw * 1 1.060 AGENDA ITEM NO. W- �11c� "-'r !mT- Adopted February 3, 2004 BYLAWS OF ASSISTANCE LEAGUEo of Temecula Valley a nonprofit public benefit corporation ARTICLE 1 Name and Headquarters: 1.01 The name of this corporation is ASSISTANCE LEAGUE. of TEMECULA VALLEY a chartered chapter of NATIONAL ASSISTANCE LEAGUE®, hereinafter referred to as NAL. 1.02 The principal office for the transaction of business of this - organization is hereby fixed and located at 28720 Via Montezuma, Temecula, CA 92590. ARTICLE 2 Purpose and Policies' 2.01 Purpose. The purpose of this organization shall be as stated in its Articles of Incorporation: to administer, carry on and :control at least one program of philanthropic work in the community. 1 -- A(IENDA ITEM NO Pik `jk_ OF 31 I to tax under Section 4944 of the Internal Revenue Code of 1986. (5) This organization shall not make any taxable expenditures as defined in Section 4945(d) of the Internal Revenue Code of 1986. (g) This organization shall support the purpose of NAL and comply with its bylaws, policies, procedures and standards. (h) The activities of this organization shall be conducted without financial benefit to any member. ARTICLE 3 Membership 3.01 Composition. This organization shall have members that shall be called voting members I and may also have nonvoting members. Membership as a voting or nonvoting member is open without discrimination to all individuals as long as they comply with the responsibilities of membership. (a) Voting - Active, Active On Limited Service, Associate, Leave of Absence, Life, Sustaining, PROS, and Assisteens. (b)' Non Voting — Provisional, PALS, and Community Associates. 3.02 Age Limit. This organization shall have no age requirements; however, it may be so organized that the membership may be divided into various groups of age compatibility in accordance with applicable law. 3.03 Leave of Absence. The Board of Directors, hereinafter referred to as the Board may grant or deny requests for temporary leaves of absence to voting members_ for travel, illness, br to meet emergency needs fora period not less than three (3) months nor more than one (1) year. While on leave of absence a voting member shall continue to pay dues, may attend Chapter meetings and vote. Members on leave of absence may not chair appointive committees or hold elective office. Other financial obligations shall be optional with the chapter.. 3.04 Dues and Penalties. Any member who is more than sixty (60) days delinquent in any chapter obligation, without reasons deemed "sufficient by the Board, shall, by action of the Board, forthwith be suspended from all privileges of the chapter. The Membership Chairman shall notify such member, in writing, of the suspension. Upon satisfactory discharge of the delinquent chapter obligations within thirty (30) days after notice of suspension, all privileges "of chapter membership shall be restored. If delinquent chapter obligations are not met within thirty (30) days after 3 -- AGENDA IT &U4 1ri0. J PACE 4.09 A majority of the Board shall constitute a quorum. 4.10 Vacancies on the Board, except in the office of President, shall be filled by majority vote of the Board. The office of President shall be filled by the First Vice President and the Board shall fill the vacancy thus created. 4.11 The Executive Committee shall be composed of the officers of the Board. This committee shall have the power of the Board between meetings of the Board. Four (4) members shall constitute a quorum. The Parliamentarian shall attend Executive Committee meetings in a nonvoting capacity. ARTICLE 5 Nominations and Elections 5.01 Nominating Committee. A. At the December Board meeting, two (2) members and one (1) alternate shall be elected by and from the Board. B. In January, a minimum of three (3) members and one (1) alternate shall be elected by, and from, the voting membership. C_ The chairman and vice - chairman shall be elected _by, and from, the Nominating Committee. D. No member shall be eligible tq,serve two (2) consecutive years. E. A one (1) year Active membership in good standing is required" to serve on the Nominating Committee. F. The Secretary shall call-the first meeting of the Nominating Committee. 5.02 In March, the Nominating Committee shall submit its slate of nominees for offices on the Board. These offices are_ President, First Vice President, Second Vice President, Third Vice President, Secretary, Treasurer, and the.following elective standing'committee chairrrian ' Education /Orientation, Public Relations, Thrift Shop, Chapter House Manager, and Liaison to Auxiliaries. The committee shall also submit its nominees for delegates and alternates to the annual and special meetings of NAL. 5.03 The committee chairman shall submit a copy of the slate of nominees to the Secretary and to each voting member at least one (1) month prior to the election meeting or at the previous regular meeting. 5.04 Ten percent (10 %) or more of chapter members eligible to vote may nominate, by signed petition, an additional nominee for pri office on the Board, or for a delegate or alternate by mailing such petition together with the written consent of the nominee to the Secretary at-least ten (10) days prior to the election meeting. No member shall sign more than one (1) nominating petition in a year. A__� 5.05 The Board shall be elected at the election meeting in April. 5 -- ,PA ate. OF classification as well as classification changes granted by the Board; (5) Shall notify a member of impending suspension; (6) In March, shalt send dues invoices to members; (7) Shall be a member of the Budget/Finance Committee; (8) Shall be, ex officio, a member of the Assisteens Coordinator's Committee and the Assisteens Advisory Committee; (9) Shall be authorized to sign checks with the President, Secretary,_ or Treasurer; (10) Shall assume the office of President should a vacancy occur in that office (11) Shall be a delegate to the Annual Meeting of NAL; (12) Mail or Email to NAL a list of names and mailing addresses of members of the Board within thirty (30) days of their election; (13) Mail or. Email to NAL a list of,. in duplicate, of the names and mailing addresses of members within thirty (30). days of the Chapter Annual Meeting; (14) Immediately, following notification, shall mail or email to NAL membership, additions, deletions ,and ,changes of name and mailing addresses. (b) Second Vice President — Philanthropic projects (1) Shall be Chairman of the,Philanthropic Projects Committee; (2) Shall be a member of the Budget/Finance Committee; (3) . Shall be, ex officio, a member of each philanthropic projects committee. (c) Third Vice President - Resource Development (1) Shall be Chairman of the Resource bevelopmont Committee; (2) Shall be 6 member of the Budget/Finance Committee; (3) Shall be.-ex officio, a memberof each fundraising committee; (4) Shall, with the, committee, :plan fundraising events and activities in compliance with NAL Fundraising Policies. -.ag, 6.03 In the absence of the President, the Vice Presidents shall serve in the order of their office. 4/ 7 AGENDA ITEM NO. 7 PACE /'�, 7.01 7.02 g7 the Board; (j) Prepare a written monthly report of receipts and expenditures to be presented to the Board and membership. Copies of this report shall be given to the President and Secretary; Assistant Treasurer. The Assistant Treasurer shall: (a) Be appointed by the President; (b) Assist the Treasurer as necessary; (c) Be a member of the budget/finance committee; (d) May attend Board meetings in a non - voting capacity. ARTICLE 7 Indemnification Indemnification of Officers Directors Emoloyees and Agebts. The corporation shall have the power; '-- rndemri�ify ,any person who is or, was a director, officer, member, employee , or ' , other agent of this corporafrcn ,against expenses, judgments, fines; settlements, and other amounts actual.,ly End ;reasonably incurred in connection with 'any threatened, pending or, completed action or proceeding, whether, civil; cnm naI administrative or investigative to` the .t(.illest: extent allowed. under Califomia law;;as that law now exists or may hereafter from time to time be amended or changed: The corporation shall . have power to purchase and malhtarn msurance on behalf of any director, omper, member, employee or other went against any liability asserted against or Incurred by such person in such capacity a #arising out of such person's staius as, such whether or not the corporat n Wpuld have power to indemnify such person against `such liability �under'fhesie byws °. Indemnification of�NAL by Chapters. The chapter agrees to `defend and indemnify and hold NAL, and its officers, directors; members, empfoyees and agents (collectively, "NAL Indemnified Parties') harmless against any charges, damages, costs and expenses (including reasonable attorney' s lees and'cou t costs), liability or loss which any NAL Indemnified Party may suffer, sUstaid or become subject to as a result of of arising duf of any action or inaction of sick chapter. In any action or proceeding relating to'the foregoing indemnity; and bi`ditgfit against any NAL Indem- hified' Party, the IVAL Indemnified Party shall have'the right to (a) participate in the defense of such •action or proceeding with attorneys of;its own choosing or . (b) defend itself in any action or proceeding with attorneys o . lts own choosing. ARTICLE 8 pAae_aLOF _54- 11 Included in the annual corporate budget. (e) Public Relations. The Public Relations Chairman shall be chairman of `SO this committee, which shall include the Newsletter Editor, the Speakers Bureau Coordinator and Community Representative. This committee shall release press and media notices of the Chapter and shall adhere to the established policies of this chapter and those established by NAL. This committee shall keep a press book of published releases. The Chairman shall be a member of the Budget/Finance Committee. (f) Education/ Orientation. The Education/ Orientation Chairman shall be Chairman of this committee.This committee shall be responsible for the education and training of the Provisional members and shall keep the Provisional Handbook current. The committee shall establish training, and education programs for the Board, committee chairman, and members and maintain resource information and materials for their use. (g) Thrift Shop. The Thrift Shop Chairman shall be chairman of this committee. This committee shall be responsible for the operation of the Thrift Shop and recommend policies for its operation subject to the approval of the Board. The Third Vice President shall be, ex officio; a member of this commifte.e. he chairman shall be a member of the Resource Development and Budget/Finance Committee. (h) Liaison to. Auxiliaries. Shall represent Chapter to the Auxiliaries and represent Auxiliaries to the Chapter. Shall attend Board; meetings in a voting `capacity and attend Auxiliary Board meetings in a non- voting Capacity. (i) Chapter House Manager. The_ Chapter House Manager shall be chairman of this committee. The committee shalt supervise the maintenance and repairs of the Chapter House and shall maintain a current inventory of Chapter property. " The Chairman shall present maintenance and repair considerations to the Board, serve on the BudgetlFinance Committee and attend Board meetings in a voting capacity. 8.03 Appointive Standing Committees (a) Assisteens Coordinator. the Assisteens Coordinator shall attend Chapter Board meetings in a non - voting capacity, be the general administrator of the Auxiliary, be responsible to the Chapter for the direction and completion of Assisteen activities, submit proposed, project`selection reports to the Chapter Board for approval and forwarding to NAL District Philanthropic Projects Reviewer, and'send to the Chapter President a written report of the auxiliaries activities for the past year within ten` (10) days after"the annual meeting. The Coordinator shall send to the Chapter a list of the names and addresses of the members of the Auxiliary Board within ten (10) days after their election. Within ten (10) AGE14DA, ITEM No. V5- _ A*--- in a non - voting capacity. (h) Placement and Hours. The Placement and Hours Chairman shall be chairman of this committee. This committee shall record membership participation and hours served. The chairman shall be a member of the Membership Committee and may attend Board meetings in a non - voting capacity. (i) Historian. The Historian shall be chairman of this committee. This committee shall keep current the written and pictorial history of the chapter, and a scrapbook for the President, both to be presented at the annual meeting. The chairman may attend Board meetings in a non - voting capacity. (j) Grants. The Grants Chairman shall be chairman of this committee. This committee shall review all proposals for grants or letters of requests for funding. This committee shall include the Treasurer, Membership Chairman, Philanthropic Chairman, OSB Chairman, and one (!) member at large from the chapter. The chairman may attend Board meetings in a non - voting capacity. (k) Strategic Planning. The Strategic Planning Chairman shall. be chairman of this committee. This committee shall include two (2) Past - Presidents, the Budget/Finance. Chairman, Philanthropic and Membership Chairmen, and two (2) additional members. This committee shall be responsible for �-� developing an ongoing plan to juidethe- growth of the Chapter, and shall, .at the direction of the Board, investigate and,evaluate prospective Chapter activities. Two (2) members shall serve two (2) consecutive terms on a rotation basis. (1) PROS Chairman. Shall. attend Chapter Board meetings in a non - voting capacity, be the general administrator of the auxiliary, be responsible to the chapter for the direction and completion of PROS activities, submit proposed project selection reports, to the Chapter Board' for approval and forwarding to NAL District Philanthropic Projects Reviewer. Shall send to the Chapter President a written report of the Auxiliaries activities for the past year within ten (10) days after the annual meeting. Shall send to the Chapter a list of the names and addresses of.the members of the Board within ten (10) days after their electron'. Wifhin tee "(10) days after the Auxiliary's annual meeting, a fist of "the names` and trailing addresses of the members shall be sent to the Chapter. Immediately following =notification,'membership addifons, deletions, and changes of names and mailing addresses shall be sent to Chapter. 8.04 By direction of the Board or membership, the President shall appoint special committees. ARTICLE 9 Meetings 13 - - AC,ENDA ITEM NC. 9J P'A - alflr __M� 10.05 The chapter, at its own expense,. shall send its delegates and may send its alternates to the annual meeting and special meetings of NAL. 10.06 Proposed expenditures of unbudgeted funds in excess of two Hundred fifty dollars ($250.00) shall be presented to the Board and membership for approval. 10.07 The corporation shall plan fundraising events and activities in compliance with NAL fundraising policies. 10.08 The corporation may raise funds to purchase or rent property to house a project or activity, which funds . shall become part of its philanthropic program. 10.09 The corporation shall not act as a fundraising agent for individuals or other organizations. 10.10 The chapter shall carry adequate insurance to protect assets and cover liabilities. i 0.1 The chapter shall plan all fund raising events given for. the benefit of its philanthropic program in.,:such. manner that the total expenditure shall be less than fifty (50) percent of the total receipts: 10.12 A vote on any philanthropic project or fundraising activity in which members shall have. a service or financial obligation shall be taken only after approval and recotramendation of the board. Tie vote shall be taken by ballot and requires a two- thirds (26 vote of the voting; members present. ARTICLE 11 Auxiliaries 11.01 Formation:: The chapter may form auxiliaries. Auxiliaries steall support chapter projects and activities: 11.02 Operation. (a) For administrative purposes, auxiliaries shall have their own governing body. They shall tie'. goverri6d by'lhe bylaws of the corporation. Their policies, and standards shall tie consistent °with the policies, procedures and standards of NAL and the chapter, (b) The auxiliary shall. establish Policies for Auxiliary Organization. These policies shall set forth procedures to: (1) Nominate and elect members of the governing body; (2) Conduct governing body meetings; 15 Lwn AGENDA ITEM NO. PACE a; —OF—1 delegate, and an alternate thereto, for up to one hundred (100) of the chapter's membership (but not less than one (1) voting delegate and with the membership rounded off to the next highest hundred for such determination), to represent the chapter at annual and special meetings of NAL. Additional delegates /alternates shall be elected for each one hundred (100) additional members, and if there are additional members in excess of those divisible by one hundred (100), one additional delegate /alternate shall be elected if there are fifty -one (51) or more additional members. 13.02 Should neither the delegate nor the alternate be available to serve, the Board may elect another delegate who shall be certified to the Secretary of NAL at least twenty -four (24) hours prior to the annual meeting and special meetings of NAL. 13.03 The chapter shall be entitled to that number of votes equal to its number of delegates. ARTICLE 14 Bylaws and Amendment 14.01 The chapter shall be governed by these bylaws. The bylaws shall not be in conflict with the Bylaws of NAL,. any federal laws or with the laws of the state in which the �. corporation is incorporated. Conflicts unresolved by a standing committee to be determined by the National Board shall be referred to the National Board for resolution, and the decision of this body shall be final. In the event of any conflict, the laws of the state shall prevail. 14.02 These bylaws may be amended or new bylaws adopted at any regular meeting, or at any special meeting called for that purpose, provided that written notice of each proposed amendment or the proposed new bylaws shalt have been given to each voting member at least thirty (30) days prior to the date of any such meeting, or at the previous regular meeting. 14.03 When amendment of these bylaws shall become necessary by action of NAL, the Bylaws Committee of the chapter is authorized to conform these bylaws in accordance therewith, and such amendment shall have the same force and effect as if adopted by the members of the chapter in accordance with the provisions of 14.01 of this Article. 14.04 Current bylaws and standing rules shall be on file at NAL. ARTICLE 15 Parliamentary Authority 15.01 The current edition of Robert's Rules of Order Newly Revised, as amended from time to time, shall govern the meetings of the chapter insofar as those rules are not 17 AGENDA ITEM NUI qJ RACE JYL[__OE 'jq- ATTACHMENT I1B MAP OF CENSUS TRACKS AGENDA [TENT NQ. �%S PAM `../ on iel �"'� — = •_:,;- � .: �- ! `-� 4 :,: i-' - � � `�- _ � 1. " � F . • —Tj — `� v — '- i• N uii: ei Uj �_ � -- - �- {�r!�• . f# -_—�_ :ice •�� • t - • �i {�•� sI _ _x -. -'321 Y �"". -,:�.� �:..r 1 it . «. 1 _ ` \ •_��� — ".a.=}-_ ' •:;:s'` V U3 - .��Ct`...i, a-'"' ice.:. i_ .•...tc.' tu AL � - �Y V - ' . i- ° i` Y'• s2= =x. fir_ H Lr et ta^ �. n a• H Q V. Ej r U0 ca H tn du o- _ $4 O $4 ul U C AGI M/A I i Levi oov. PAC_ Z &OF? ATTACHMENT.IIC OPERATION SCHOOL BELL FORMS PARENTAL PERMISSION COMMUNITY BLOCK GRANT PROGRAM ACENIDA ITEwi vi u,. qs Fa �r-- Q1 --4 COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM 2005 -2006 SELF- CERTIFICATION FOR PUBLIC SERVICE AGENCY CLIENTELE (not for use on housing activities) INCOME AND FAMILY SIZE Please Print Name: This section to be completed by Grantee METHOD (verification) Check one - 0 IRS 1040 El Section 8 Address: City & State: Zip 1) CATEGORY: I consider myself in one of the following categories (please check ONLY one): (A) Senior Citizen (C) Migrant Farm Worker (B) Physically Challenged (D) None of the above 2) FAMILY SIZE (check ONLY one): 10 20 30 40 50 60 70 80 3) FAMILY INCOME: My current family yearly income from all sources is closest to, but less than the income level shown below (check ONLY the nearest income figure): 0$11,700 0$19,500 0$31,200 EI$13,350 0$22,250 0$35,650 0$15,050 0$25,050 0$40,100 0$16,700 0$27,850 0$44,550 0$18,050 0$30,050 0$48,100 0$19,400 0$32,300 0$51,700 0$20,700 0$34,500 0$55,250 0$22,050 0$36,750 0$58,800 Note: Fatuity income means the total income of all persons living in the same household who are related by birth, marriage or adoption and are benefiting from the activities (public services or job creation, which benefit an individual or family). (Ref. 24 CFR 570.3) 4) ' ETHNICITY: (Select ONLY one out of the Single -race or Multi -race categories). Single race category 0 White 0 Black/African American 0 Asian 0 American Indian/Alaskan Native 0 Native Hawaiian/Other Pacific Islander Multi -race category 0 American Indian/Alaskan Native & White 0 Asian & White 0 Black/African American & White El American Indian/Alaskan Native & Black/African American 0 Hispanic/White 0 Hispanic/Black/African American 0 Hispanic/Asian 0 Hispanic/American Indian/Alaskan Native 0 Hispanic/Native Hawaiian/Other Pacific Islander 0 Hispanic/American, Indian/Alaskan Native & White 0 Hispanic/Asian & White 0 HisoanicBlack/African American & White OPERATION SCHOOL BELL Assistance League of Temecula -Valley 28720 Via Montezuma Temecula, California 92593 PARENT PERMISSION UNIFIED SCHOOL DISTRICT Lake Elsinore Murricta Temecula Menifee 1, the undersigned parent/guardian of student's name request that the above selected school district make an appointment with OPERATION SCHOOL BELL for the purpose of obtaining clothing for my child I understand that I shall be informed of the time and place of the appointment and that I shall accompany my child to the appointment. - atgmmrc or parenyguaraian Date Please assist us by listing the correct sizes for your child and answering the questions listed below. ITEM SIZE Shirt/Blouse Pants Dress Sweatshirt/Sweater Jacket Underwear Socks Shoes Federal Lunch Program (circle one) Yes Ethnic Group (circle one) White Am Indian Asian Head of Household (circle one) Married No Black Hispanic Middle East Other Single Single Grandparent Other Mother Father a.or �.ar+ Pareat PermLmioa Form - 7`� .ArjENDA ITEM NO. ATTACHMENT I1D BUDGET 2005 -2006 FEDERAL STATEMENTS PROFIT & LOSS JUNE 2004 THRU MAY 2005 A'QENDA ITEM Pao. PAS A-T—OF-34--1 10:35AM ASSISTANCE LEAGUE OF TEMECULA VALLEY P9/0"5 Profit & Loss. - .. -Overview Accrual Basis June 2005 through May 2006 Irecorne 1598 SUPPORT & REVENUES 1502 - FUNDRAISING 2199 - GALA INCOME 1504 - THRIFT SHOP SALES Total 1502 - FUNDRAISING 2399 - GRANTSIDONATIONS Total 1598 - SUPPORT & REVENUES Total Income Gross Profit Expense 3099 - ALLOCATED EXPENSES 5700 - OCCUPANCY EXPENSE 3004 - GAS 3007 - WATER 3009 - TELEPHONE 3010 - INSURANCE 3011 - COPIER RENTAL 3014 - BLDG. REPAIRSAMPROVJMAMNT. 301S - LANDSCAPE MAINTENANCE 3016 - ALARM SYSTEM 3017 - TRASH 3018 - PROPERTY TAXES 3019 - JAWFORIAL 3020 - HOA DUES 3021 - EDISON 3104 - SAFE DEPOSIT BOX 3107 - FEES a PERMITS 3129 - WSURANCEIBOARD 3130 • PROFS G 3140 - PROFESSIONAL FEES- ACCOUNTWG Total 5700.00CUPANCY EXPENSE TOW 3099 - ALLOCATED EXPENSES 3798 - MEMBERSHIP EXPENSE 3199 - MANAGEMENT 3003 - POSTAGE 302S - PRINTING 3101 - CHAPTER HOUSE SUPPLIES 3110 - PRESIDENTS EXPENSE 3115 - HISTORIAN 3116 - INCOMING PRESIDENTS CONFERENCE 3118 - MAL WORKSHOPS 3121 - CONVENTION 3122 - ADVERTISING 3124 - NEWSLETTER 3126 - PUBLIC RELATIONS 3701 - HOSPITALITY 3702 - PROVISIONAL EXPENSE 3710 - WEB SITE MAINT. (WEB SITE MAINT) 3712. MEMBERSHIP RECRUITMENT 3703 - NAL DUES Total 3198 - MANAGEMENT Total 3798 - MEMBERSHIP EXPENSE 3299 - FUNDRAISING EXPENSES 3999 - FUNDRAISING EXPENSES 3509 - ASSISTEENS 3510 - PROS Jun ,es - May 06 9,200.00 286,620.00 295.820.00 35,000.00 330,820.00 330,820.00 330,820.00 400.00 2,100.00 3,000.00 11 *,.100.00 3,200.00 15,000.00 2,000.00 1,200.00 4,200.00 11.100.00 10,800.00 3,000.00 18,000.00 25.00 150.00 2,100.00 500.00 5,000.00 93,675.00 93,675.00 700.00 3,800.00 1,500.00 1,000.00 500.00 350.00 1,500.00 5,695.00 1,500.00 1,200.00 750.00 1,500.00 800.00 600.00 800.00 4,100.00 26,295.00 . 28,295.00 7,2(10.00 12,500.00 0 Page 1 Af+ENDA ITEM 110. LJ PACE Page 1 AGENDA ITTEM NO. - ASSISTANCE LEAGUE OF TE_MECULA VALLEY 10:35 AM Profit LossngOverview "N".6 June 2005 through May 2006 accrual Basis Jun V5 - May 06 10 ' k 1598 • SUPPORT & REVENUES 1502 • FUNDRAISING 9200.00 2199 • GALA INCOME 286620.00 1504 - THRIFT SHOP SALES 295,820-00 Total 1502 - FUNDRAISING 2399 - GRANTSIDONATIONS 35,000.00 Total 1598 - SUPPORT & REVENUES 330,820.00 330.820-00 Total Income 330,820.00 Gross Profit Expense 3099 - ALLOCATED EXPENSES 5700 - OCCUPANCY EXPENSE 3004 • GAS 400.00 3007 - WATER 2,100.00 3009 - TELEPHONE 3,000.00 3010 - INSURANCE 11,900.00 3011 - COPIER RENTAL 3,200-00 3014 - BLDG. REPAIRSAMPROVJIMAINT. 15,000.00 3015 - LANDSCAPE MAINTENANCE 2.000.00 3016 - ALARM SYSTEM 1,200.00 3017 - TRASH 4,200-00 3018 - PROPERTY TAXES 11,100.00 3019 - JANITORIAL 10,800-00 3020 HOA DUES 3,000.00 3021 EDISON 18,000.00 3104 - SAFE DEPOSIT BOX 25-00 3107 - FEES A PERMITS 150.00 3129 - MURANCEA30ARD 2,100.00 3130 - PROFESSIONAL 5w -00 3146 - PROFESSIONAL FEES ACCOUNTING 5.000-00 Total 5700.00CUPANCY EXPENSE 93,675.00 Total 30" • ALLOCATED EXPENSES 93 675.00 3798 - MEMBERSHIP EXPENSE 3199 • MANAGEMENT 3003 - POSTAGE 700.00 3025 • PRINTING 3,800.00 3101 • CHAPTER HOUSE SUPPLIES 1,500.00 3110 • PRESIDENTS EXPENSE 1,000.00 3115 . HISTORIAN 500.00 3116 - INCOMING PRESIDENTS CONFERENCE 350.00 3118 - NAL WORKSHOPS 1,500.00 3121 • CONVENTION 5,695.00 3122 • ADVERTISING 1.W -0 3124 . NEWSLETTER 1,200 -0 3126 • PUBLIC RELATIONS 750.00 3701 - HOSPITALITY 1,500.00 3702 - PROVISIONAL EXPENSE 800.00 3710 - WEB SITE MAINT. (WEB SITE MAIYT) 600.00 3712 . MEMBERSHIP RECRUITMENT 800.00 3703 • NAL DUES 4,100.00 Total 3199 • MANAGEMENT 26.E -00 Tolel 3798 • MEMBERSHIP EXPENSE 28,M.00 3299 • FUNDRAISING EXPENSES 3599 - FUNDRAISING EXPENSES 3509 ASSISTEENS 7,200.00 3610 • PROS 12,500.00 Page 1 AGENDA ITTEM NO. - Form 990 Return of Organization Exempt from Income Tax Under section 501(c 527, or 4947 axi of the Internal Revenue Code (except blalung benefit or private foundation) fieparbneal of t.e Treasury Infernal ReYera,e Service The organization may have to use a copy of this return to satisfy state reporting req A For the 2003 calendar year, w tax year beginning 6/01 , 2003, and end 5/31 B Cheat if apps D Address d+ange mss ww ASSISTANCE LEAGUE OF TEMECULA VALLEY Harm donw °f 28720 VIA MONTEZUMA TEMECULA, CA 92590 -2510 F" ebi m specter Finat retvn � F Amended rebm OMB No_ 1545-0047 1 2003 Open to Public Inspection Employer idartitcason "saber 33- 0360419 id"&ww mnrMr (909) 694 -8018 IN- App— pin • Section 501(e organizations and 4947(a nahexempt x andr are nor appiraW to section SV organ�Ewm charitable trusts attach a completed A H (a) is Ws a group retva nor atfi6ates7.... Yes 0 (Form 990 or 990-EZj G Web site: ► ./- Organization type check only one ........ ► X Sol(c) 3 - (...t no ) 4947wo) or F1 Sa K Check here ► if the organization's gross receipts are normally not more than $25,000. The organization need not file a return With the IRS; but it the organization received a Form 990 Package in the mad, it should file a return without financial data. Some states require a complete Mum. E Gross receipts. Add litres 6b, 8b, 9b, and 10b to fine 12.. ► 742, 828. Revenue, Expenses, and Chanqes in Net Assets or H (b) it -yes: enter mmbw ot aiwafes ► H (C) Are at awases kxwe& ......... [:IV. [] No (H TAW,• anadr a FaL See i tsbuctiore;J H (d) is tis a separAe return filed by an «ganaaDion by a group raring? ryes tX l No I Group Ex tart Number.. M Check P- U d go orpikatim is not required b allach Sdnedale 8 (Form 9e4 99a2; or 99"F)- 1 Contributions. gifts. grants, and similar amounts received: a Direct public support .................................................... 13 346,647. b Indirect public support ... :.............................................. 1 c Government contributions ( grants) ........ ..... :.......................... 1 c 22,000. d °ter o ,— ..n $ 81,016. $ 287, 631. ) ........................ 2 Progrjim service revenue including government fees and contracts (from Part VII, line 94 3• Membership dues and assessments .................................. ..................._...._...... 4 interest on savings and temporary cash investments ................................................... 5 Dividends and interest from securities ................................ ............................... 6a Gross rents ................................................. ......._... 6a b Less: rental expenses ................... ............................... I 6bj c Net rental income or (loss) (subtract fine 6b from line 6a) ..................................... . ........ R 7 Other investment income (describe ....... ► E (A) Securities (B) Other E 8a Gross amount from sales of assets other N than inventory ..... ............................... 8a E b Less: cost or other basis and sales expenses_ ...... 8 e Gain or ( bas) (attxh sdmdule) .......................... 8e d Net gain or (loss) (combine line 8c, columns (A) and (B)) ..................................... .:.:.... 9 Special events and activities (attach schedule). If any amount is from gaining, check here .... ►Q a Gross revenue (not including $ of contributions reported on line ]a) . .................................................... 9al 81,292. b Less: direct expenses other than fundraising expenses .................... 9bj 22,683. . c Net income or (loss) from special events (subtract line 9b from fine 9a) ............... Statement. I 10a Gross sales of inventory, less returns and allowances ..................... lea 269 263. b- Less: cost of goods sold ........... .................................... I 18b 269 263. c Gross profit or (loss) from sales of inva" (attach whedtde) (subtract rote 10b fmm fine l6a) ........... StateMellt. 2 11 Other revenue (from Part VII, fine 103) ................................ .....................:.:.....:. 12 Total revenue add lines 1 d, 2, 3, 4, 5, tit, 7, 8d, 9c, 10c, and 11 ......................... E 13 Program services (from line 44, column (B)) ......................................................... i 74 Management and general (from line 44, column (G�) :. . . . . ... ......................... . ........ N 15 Fundraising (from line 44, column ( D)) ............................................................. e 16 Payments to affiliates (attach schedule) ........................................... ................. . : .... See . Statement.3 _. s 17..- Total expenses (addfines.16and44,column A).._._._.....---.-_• ... ........... •-•-.- .....:- • -_.... 18 - Excess or (deficit) "for the year (subtiact line 17 fiern line 1 A... Y. 2) ................... it e s 19 Net assets or fund balances at beginning of year (from line 73, column (A)) ............................ T T 20 Other changes in net assets or fund balances (attach explanation) .... . . ........... . .. ................. 368 647. 23 626. 581609: 450, 882 . 252,187. 37,132 : 102,309. 6,270. 397;898. -769,238. 'Ifto s 21 Net assets or fund balances at end of year (combine lines 18, 19, and 20 ...... 21 822,222. BAA'ForP5penv6ik Reduction Act Notice, see the separate instructions. 7EEAO107t 10103M. Form 990 (2003) ACA ffEM No. �S . nAam 107, A' '2,li Form 9% (2003 ) ASSISTANCE LEAGUE OF ra ki Statement of Functional Expen! _J A %.. VALLEY 3- 0360419 AN organizations must complete column (A)- Cohxnns (B). (C), and (D) are . :-,.,.,r arvt CPCilnn 4947(a)[11 nonexempt charitable trusts but optional for others. required nor section 50 ROkkaj a. w Do not include arnorxhts reported on line bb, ab, 9b, lob, or 16 of Part t_ •,• •• ��••. - - - - -- - (A) Total �s rvcesm (Ci and general and m) Fhrndraising. Grinds and allocations (att sch) See S tm 4 (cash $ non -cash $ 178, 734.) ....... 23 Specific assistance to whdrW als (alt sch) ...... 24 Benefits paid to or for awnbers (alt sch)------- 25 CwOmsatim of officers. efirecba. etc - - - - - - - - 26 Other salaries and wages - - - - - - - - - - -- - 27 Pension plan contributions . _ .......... 28 Other employee benefits - - - - -- - - - - - - -- 29 Payroll taxes ......................... 30 Professional hxxfraising fees . - - - - - .. - - 31 Accounting fees .............. ........ 32 Legal fees----- ------ --- -- ----- ------ 33 Supplies ..................... . ...... 34 Telephone ------------------ ---- - - - - -- 35 Postage and shipping ........ . ........ 36 Occupy -- ----- -- --- ------- --- - - - - -- 37 Equipment rental and maintenance.. - . - 38 Printing and publications ...... . ....... 39 Travel --- --- ---- --- --- ------- -- ------ 40 Con lawa!% wrnrnelWmva tine meetings........ 41 Interest .............................. 42 Depredation, eepletim etc (attach sdhedmde) - - . - 43 oe w wpmm not wdaW above (damas): a See Statement 5 b lel� ------------- - - - - -- ------------- - - - - -- J e _ _ 44 Total finc�tionha�t expenseqs (a -Wks 22 - — �tentak to Dries 13 - t (B)'.. 22 178 734. 178 734. 23 24 25 26 27 28 29 30 31 32 33 28,965. 15,569---- 2,039. 11 357 . 34 4,109. 1,644. 411. 2 054. 35 36 619. '721317- 247. 28,925. 62. 7 232. - 36,160. 310. 37 4,922. 1,271. 318. 3,333. 38 3,949. 855. 2 025. 1,069. 39 40 5,009. 5,009. 41 2,640. 1,048. 265. 1,327. 42 42,549. 17,020. 4,254. 21,275. 43a 47,815. 6,874. 15 517. 25,424. 43b 43c 43d 44 . 391 628. 252 187. f37 132: 102,309. Joint Costs. ChedL 1"U if you are fdlowing SOP 98 -2. Are any joint costs from a combined educational campaign and fixxiraising solicitation reported in (B) Program services?....... h►❑ Yes . XD No if ` Yes: enter () the aggregate amount of these joint costs $ ; (a7 ft arnwrd allocated to Program services $ : (a) the avant allocated to Management and general $ and (n) the amount allocated to What is the organization's primary exempt purpose? ► CHARITABLE _ I — — a rgan¢a� ra e,lrat Ld)e etc r DKcuss�� that achievements. not dear. =a ur_abl _(Sect .01(ccX3) 4j i4) Qr9an' a_ "OPERATION. SCHOOL BELL" PROVIDED COMPLETE OUTFITS OF _N_EN CLOTHING TO _ SCHOOL _C_HIL_DREN _FRO_M LOW INCOME FAMILIES. _GRANTS_ CONSISTED—OF -------- CLOTRING1 SHOES. HYGIENE KITS, - ETC. ---------------------------- (Gramm and allocations $ 175,530.) - 75, 530. )- b_ "KIDS ON THE BLOCK" _USE_S PUPPETS WITH VARIOUS MENTAL - AND PHYSICAL DISAIES. TEACHES SELF - AWARENESS AND FOCUSES ON IMPROVING SOCIAL BILIT UNDERSTANDING. ------- - - - - -- Grards and allocations $ ) c PROJECT SMILE HELPS PROVIDE IOW COST OR FREE DENTAL SERVICES TO - ------ ELEMENTARY SCHOOL STUDENTS IN LOCAL SCHOOL DISTRICTS ---------------- -=-==---------=-=-=----=----------- tGrants and allocations $ OPERATION BOOK WORM -- NEW BOOKS ARE PROVIDED TO CHILDREN - FRO-M-10— -------- .---------- .--------- - - - -.- _- T NCOMEE. -_ I AhIT LIES _ _ _ _ - _ _ _ - - ------------------------------------------------------ Grants and allocations .$ 3,204. e Other program services ..S-ee..Statement- .6:..... (Grants and f Total of Program Service Expenses (should equal line 44, column (13). 7,357. 1,463._ . 3,204. 15,420. ......... ►f 252,187. <- AGENDA ITEM ``" PAM ,�'q of _3L�, Form 9W(2003) ASSISTANCE LEAGUE OF TEMECULA VALLEY 33- 0360419 Page 3 Balance Sheets (see tnstrudions) Note: Where required, affacbed schedules and anwunts widen the descdption (A) colurnrr should be for end- of-year amounts only Beginning of year 45 Cash — non- interest - bearing ................... ............................... 12,405. 46 Savings and temporary cash investments ..... ............................... 9,726- 47a Accounts receivable ............................. l 47al 22,475. b Less: allowance for doubtful accounts............ I 47b 48a Pledges receivable .....................:........ 48a b Less: allowance for doubtful accounts............ 48b 49 Grants receivabie ...............................••---._...._...........----- A 50 Receivables from officers, directors, trustees, and key s employees (attach schedule) ................. ............................... e 51 a Obw notes b loans receivable (adwh schl .............. 51a s b Less: allowance for doubtful accounts ............ I 51 b 52 inventories for sale or. use .................... ............................... 53 Prepaid expenses and deferred charges ....... ............................... 54 Investments — securities (attach schedule) .............. ►a. Cost[] FMV 55a Investments — land, buildings. & equipment: basis 55a bLess- accumulated depreciation (attach schedule) ............................... 55 b 56 Investments — other (attach schedule) ........ ............................... 57a 1_ and, bungs, and equipment: basis............ 57a 1 022 050. b Less: accumulated depreciation (attach schedule) ........... Statement-2 _ 57 304,986. 58 Other assets (describe ► See Statement 59 Total assets add lines 45 through must equal line 74 .................... 60 Accounts payable and accrued expenses ..................................... L 61 Grants payable A 62 Deferred revenue ............................ ... ............................ a r 63 Loans from dbcea. drect M bvslees. and key employees (attach nuae&k]L .................. L I 64a Tax - exempt bond liabilities (attach sole) ................................. T r b Mortgages and adw notes p T Ale (attach stimuli* ...................................... E a 65 Other liabilities (describe ►. 66 Totalliabi6ties add lines 60 through ...... ............................... Organizations that follow SFAS 117, check here ► Wand complete lines�67 through 69 and Cones 73 and 74. 67 Unrestricted ... .............................:. ......... 68 Temporarily restricted ........................ ............................... CqPermanently restricted ............. •.............................. R Orgnizations that do not follow SFAS 117, check here � � and complete lines 70 through 74. N70 Capital stock. trust principal, or current funds ................................. s 71 Paid -in or capital surplus, or land, building: and equipment fund ............... t 72 Retained earnings, endowment. acaunnclated income, or other kinds............ c 73 Total net assets or fund balances (add lines 67 through 69 or Canes 70 through i 72. cokmn (A) must equal line 79; column (13) must equal line 21) ............ 74 Total liabilities and net assetsnund balances (add limes 66 and 73)------------ 5,000 105.303 703,863. 800. 837, 097. 4,166. 19,520. 44,173. 67,859. r69,238. End of year 145 9,049. 46 22,433- 22,475. 47c 48c 49 50 116 855. 717 064. 5,376- 893 252. 48,060. r �r 22,970. 71.030. 51c 52 53 54 Z6 i6 7c .8 ;9 0 I 2 3 4a 4b 5 6 7 40.675. 238.173 1 822,222. 097.174 1 r 893.252. Form 990 is available for public inspection and. for some people. serves as the primary or sole source of information about a particular organization. How the public perceives an organization in such cases may be determined by the information presented on its return. Therefore. please.make sue the return is complete and acaxate and.fully describes, in Part Ill, the.- organization's= prograrns:and accomplusihments. BAA :. TEEM103L hofDUO3 C% Form 99tW.Reconciliation ASSISTANCE LEAGUE OF TENECU a_ of Revenue per Audited Financial Statements with Revenue �. per Return (See instructions.) 33- 0360419 Page 4 onciliation of Expenses per Audited incial Statements with Expenses Return Total revenue, gains, and OUff support (B) Title and average tarn P� week devoted to position a Total expenses and losses per auartea 450 8 82 financial statements - - - - - - - - - - - - - - - ► a 3 per arrdied finanaal statenrerds ......... a . U. b Amounts included on line a but 0. b Amounts included on line a but not on lire 17, Form 990: not on line 12, Form 990: (1) Net unrealized (1) Donated e - gains on investments.... $ of facilities...... $ (7) Donated sere- ices and use (2) Prior year - mends reporhl an of facilities:.... $ One 2k Form 990 ' ' ' $ (3) Recoveries of prior $ (3) Losses reported an One 2k form 990 ... $ year grads....... (4) Other (specify): (4) 00w (specify): ---- - - - - -$ - - - - -- - -$ Add amounts on Orres (I) through (4) ..... 10- b Add mmots on lines (1) be* (4) ...... .. b C Line a mrrxis One b............... c 450 882. c Line a minus One b ................ c 397 898. d Amounts inducted on One 12, Form 990 but not on line a: d Amounts included on line 17. Form 990 but not on One a: (1) lmresbrat Fm j P P I Cl) kwe*"M* eaperrses not included on One aot kick" on in 6k Form 990..... $ 6h, form 990 ...... $ (2) Other (specify): (2) other (specify): Add amounts on Ones (1) and (2).. 91, d Add amounts on lines (1) and (2)--- d Total revenue per Line 1 Form 2' ► a Total expenses . fine 17, Form 450 882. 990 c ► a 397,898. 990 c fine •t1:......1...,.- e ■ l..a .s nsA� T— --A it—. GMnlewmc A :ei .--h nns.n if rw%f eYvYuiPnsafM: see instruCbOns.i (A) Name and address (B) Title and average tarn P� week devoted to position (C) tion C� enter -0-) (D) Contributions to employee benefit plans and deferred compensation (E). Expense account and other allowances See Statement 9 --- - - - - -- --------------- - - - - -- U. 0. 0. Did any officer; director; trustee; or key employee receive aggregate compensation of more than ;100, 000 -from.your organization and all related organizations, of which more than ;10,000 was provided by the related organizations ?.:.: • :: . . ::.::::: .-. , :........... _ .. If 'Yes.* attach schedule —see instructions: BAA Form 990 (2003) TEEM104L 10/02/03 Form 9% (200.3) ASSISTANCE LEAGUE OF TEMECULA VALLEY 33- 0360419 Page 5 Other Information csee instructions -) Yes No 76 Did the organization engage in any actnnty not previously reported to the IRS? If 'Yes,' attach a detailed description of each activity ...................... ................ •- •- ._....._... 7 77 Were any charges made in the organizing or governing documents but not reported to the IRS?...... . If 'Yes; attach a conformed copy of the changes. 78a Did the organization have unrelated business gross aheome of $1,000 or more during the year covered by this return?.. 71 b If 'Yes; has it filed a tax return on Form 990-T for this year? ............................... 71 79 Was there a liquidation, dissolution, termination, or substantial contraction dying the year? If'Yes,'attach a statement .................................................. .......... •-- •------ •---- - - - -•- 7`- 80a Is the organization related (other than by association with a statewide or nationwide organization) 9a�ation) through common �. governing des, trustees, officers, etc, to any other exempt or nonexempt organization................ SC b If 'Yes; enter the name of the organization ► N/A _ _ _ ----------------------- - - - - -- and deck whether it is exempt or �nonexem�►t 81 a Enter deed and indirect political expenditures. See One 81 instructions ................... I 81 al 0- b Did the organization file Form 1120 -Flit. for M year ?.............................................................. 82 a Did the or . receive donated services or the use of materials, equipment. or facilities at no charge or at substant' less than fain rental value? ............................................. ............................... 82 b if ' Yes; you may indicate the value of these items here. Do not include this arnocxht as revenue in Part I or as an expense in Part 11. (See instructions in Part III-) ................ I 82 b N/A 83a Did the organization comply with the public inspection requirements for returns and exemption applications ?... b Did the organization comply with the disclosure requrcemernts relating to quid pro quo contributions? ................... 831 84a Did the organization soli Mck any contributions or gifts that were rot tax deductible ?...... . . . ........................... . 84, b If 'Yes,' did fhe or aniraSon include with every solicitation an express statement that such contribution or gift§ were rottax dedudble ............................:.....................:.............. ............................... 841 85 501(cX4). t% or (6) a Were substantial y all dues nondeductible by members? ......................... M b Did the organization make only in-house lobbying expendit res of $2,000 or less? ............. . .. . ... . ............... .851 if 'Yes' was answered to either 85a or 85b, do not oomplete 85c through 85h below unless the organization received a waiver lot proxy tax owed for the prior year. c Dues. assessments. and similar amounts from members ........................ . .. . ..... 85 c N/A d Section 162(e) lobbying and political expenditures ........ .........................:..... 85d N/ e /aggregate nondeductiblie amount of section 6033(e)(1)(A) dues notices .......... ....... 85e N/ f Taxable amount of lobbying and political expenditures (fine 85d less 85e)................. 85f N/ g Does the orgar>ization elect to pay the section 6033(e) tax on the amount on fine 850 . _ .. _ ... . h 9 section 6MeXixA) dues notices were sent, does the w9aritzilim agree to add tine swunt on One 89 to tits reasonable estimate d dues allocable b Wdeiltic" lohbying and political a tires for the following tau yeah ......................... . .................. 85 h 86 501(c)(7) aryankatiorm Enter: a Initiation fees and capital contributions included on fine 12.... N/Al b Gross receipts, included on One 12, for public use of chub facilities ............ . ... . ....... 86 N/A 87 501(c)(12) organirabons. Enter: a Gross income from members or shareholders ......... 87a N/ b Gross income from other sources. (Do not net amounts due or paid to other sources againnst amounts due or received from them.) ........ . 88 At ary time during the year, did the organization own a 50% or greater interest in a taxable corporation or partnership or an entity disregarded as separate from the org�tion under Regulations sections 301.7701-2 arx! 301- 013? If 'Yes; complete Part IX ... - 89a 501(c)(3) Enter. Amount of tax imposed on the organization during the year under_ section 4911 ► 0 . ; section 4912 ► 0. ; section 4955 ► 0 . b 501(c)(3) ardd 501(cJ 9 organizations. Did the organization engage in any section 4958 excess benefit transaction during the year or s�liidd ht become aware of an excess benefit transaction from a prig year? If 'Yes; attach a statement explanfuV each trensaction ........................................... ............................... ............. 891 Kiln w --- T fl X' c Enter: Amount of tax ' on the Wlzahon managers or disqualified persons during the -year under sections 49114955, and 4958 ................................... ............................... ► 0 . d Enter. Amount of tax on line 89c. above, reimbursed by the organization :.................. . ...... . . .. . _ .... _ . ► 0 . 90a List the. states with which a copy of this retumh.is fled ► - _CALI_FOR_N_I_A_ . _ _ _ _ _ _ _ b Number of `empipyees employed in the -pay period tha( includes March 12, 2003 (See instructions.) - - - - - - - - - �-90 0 9i The books are ire care of ► _DONAL_D McLEAN_ &. CO, ; CPA's _ Telephone number ► (9 0*9) 6.99_ 109_0__ _ _ _ _ Lmaad at- 387.60 DI; SUIT CL.�MURRIETA - ` ► 925 63_ — � SKY- CANYON RVE E ZIP + 4 — - - -_ .r -- --------=--- - - - - -- — - -- — 92 Section 4947(a)(1) nonexempt dmtable busts filing Form 990 in lieu of Form 1041— Check here . . .....: . :.. .........: _ N/A ... ► and enter the amount of tax - exempt interest received or accrued during the tax year.. 8AA .Form 990 (2003) zeu;AOhoec hzn3103 - — - A'CatPWA 1 toil 4. . 7c ' Form 990 (2003) ASSISTANCE LEAGUE OF TEMECULA VALLEY 33- 0360419 PM s 93 a b C d e f 94 96 96 97 98 99 100 101 102 103 104 Ana sis of Income- Produc�n Activities ee instructions - unrelated business income Excluded section 512, 513, or 514 Enter gross amounts unless Related or exempt rrN. indicated -Business code Amount Ezclus on code Amount frxictan income Program service revenue: MedicareANedicaid payments ........ 9 � & contrails from pwilmerd agencies... 3 23 626. Membership dues and assessments.. hrbxest on savings & lemporary cash inulllyds . Dividends & interest from sectuities.. Net nMW irlconle or (loss) from real estaic a debt- financed property .............. b not debt- financed property .......... Net rerdal kmile or (1m) from pers prop... . Olber investment income- ........... Gain or (loss) from sales of assets other than inventory ............. . Net income or (bss) from special events ..... 1 581609- cross profit a om) lean sales d irrienim t .... Other revenue: a b C d e Subtotal (xW colmmos (B), (D); and 82,2-3-5.1 5 a Total (add line 104, columns (E). (D). and (Q) - - . - - - - - - - • - - - - - - - - - - 82, 23 • + i,. iniq fn raw- Id Part l_ should equal the amount on lure lZ Part L Une No Ex lain how each activity for which income is reported in coksm (E) of Part Vll contributed importantly to the accorrtplishmerrt Q N/A Information Regarding Taxable Subsidiaries and I aided. -n ities (see instructions. Name, address, and EIN of corporatioil. Percentage Of Nature of activities Total End-of year partnership. or disregarded entityt income assets N/A % Information Regarding Transfers Associated with Personal Benefit Contracts (see instructions• a Did the arga nizatim dining the year;. any fwrds, &eft o ).1D PaY prBWUM an a personal benefit trorlhacL� ................. Yes X No A Winn it,- .,par nay nramitms. directly or indirectiv. on a personal benefit contract? .......... Yes X NO Note: H 'Yes' to tbl file Form 8870 and Fom Please Sign Here d ay knowledge and belie(. it is Sipe ►..lames .A. =Meyler; Gpaees Film's name w Donald- McLean & Yom Use :5 ate ► 38760 Sky Canyol Only.. aP.444. and Murrieta, CA• 92! KA.- CPA r s 62 Vale Chock 9 1 c _lii ctioo wf . stn- - - - - -- ... _ P00150491 to C EW 95- 3812186 Phooeno. (909) 699 -1040 W_EAolo6L i0+03o3- Form 990 (2003) AGENDA ITEM NO. yS . e+sear+ 14� nr �ItL _ _ a Total (add line 104, columns (E). (D). and (Q) - - . - - - - - - - • - - - - - - - - - - 82, 23 • + i,. iniq fn raw- Id Part l_ should equal the amount on lure lZ Part L Une No Ex lain how each activity for which income is reported in coksm (E) of Part Vll contributed importantly to the accorrtplishmerrt Q N/A Information Regarding Taxable Subsidiaries and I aided. -n ities (see instructions. Name, address, and EIN of corporatioil. Percentage Of Nature of activities Total End-of year partnership. or disregarded entityt income assets N/A % Information Regarding Transfers Associated with Personal Benefit Contracts (see instructions• a Did the arga nizatim dining the year;. any fwrds, &eft o ).1D PaY prBWUM an a personal benefit trorlhacL� ................. Yes X No A Winn it,- .,par nay nramitms. directly or indirectiv. on a personal benefit contract? .......... Yes X NO Note: H 'Yes' to tbl file Form 8870 and Fom Please Sign Here d ay knowledge and belie(. it is Sipe ►..lames .A. =Meyler; Gpaees Film's name w Donald- McLean & Yom Use :5 ate ► 38760 Sky Canyol Only.. aP.444. and Murrieta, CA• 92! KA.- CPA r s 62 Vale Chock 9 1 c _lii ctioo wf . stn- - - - - -- ... _ P00150491 to C EW 95- 3812186 Phooeno. (909) 699 -1040 W_EAolo6L i0+03o3- Form 990 (2003) AGENDA ITEM NO. yS . e+sear+ 14� nr �ItL Note: H 'Yes' to tbl file Form 8870 and Fom Please Sign Here d ay knowledge and belie(. it is Sipe ►..lames .A. =Meyler; Gpaees Film's name w Donald- McLean & Yom Use :5 ate ► 38760 Sky Canyol Only.. aP.444. and Murrieta, CA• 92! KA.- CPA r s 62 Vale Chock 9 1 c _lii ctioo wf . stn- - - - - -- ... _ P00150491 to C EW 95- 3812186 Phooeno. (909) 699 -1040 W_EAolo6L i0+03o3- Form 990 (2003) AGENDA ITEM NO. yS . e+sear+ 14� nr �ItL SCHEDULE A (Fonn 990 or 9904M kaar�Sar Name of on womk36on Organization Exempt Under. Section 501(cX3) (Except Private Foundation) and Section 501((e), 501(f), 501(k), 501(n� or Section 4947(a ) Nonexempt Cfradtable Trust Supplementary information — (See separate instructions.) ' MUST be completed by the above organizations and attached to their Form 990 or 990-Q. 33- 0360419 OMB No. 1545 -0047 2003 _ l Compensation of the Five Highest Paid Employees Other Than Officers, Directors, and Trustees (See instructions. List each one. It there are none, enter None.1 (a) Name and address of each employee aid more t= 1000 "Till s per week devoted to position (c) Compensation t(d) C aye& &t pam (e) Expense account and other allowances None Total number of ofhers reeeNj*ng- over =50,000 for Professional services ......... ► 0 Total mxnber of odw employees paid over $,%OW. 0 Compensation of the Fnre.Highest Paid Independent Contractors for Professional Services (See ii stnx tiors. List each one Wi ther kxwWuals or i mss). if there are none. enter None.) (a) Name and address of each independent contractor paid more than =50.000 (b) Type of service (c) Compensation None------ - - - - -- - -- -- - - - - -- - - - -- Total number of ofhers reeeNj*ng- over =50,000 for Professional services ......... ► 0 wn 13AA For Paperwork Reduction Act Notice, see the Instructions for Form 990 and Form 9904EZ. Schedule A (Form 990 or 990-tEZ) 2003 q AGENDA REM ric�.�___ `� Schedule A (Form 990 or 990 -EZ) 2003 ASSISTANCE LEAGUE OF TEMECULA VALLEY 33- 0360919 P age 2 Yes No _ Statements About Activities (See instructions -) �^ During the year, has the organization attempted to influence national, state, or local legislation, including any attempt to influence public opinion on a legislative matter or referendum? N'Yes._ enter the total expenses paid or incurred in connection with the lobbying activities.... " $ N/A X (Must equal amounts on line 38, Part VI-A, or fine I of Part VI43.) .................... ............................... 1 Organizations that made an election under section 501 (h) by filing Form 5768 must complete Part VI -A Other organizations checking 'Yes; must complete Part VI-B AMQ attad� a statement Siring a detailed description of the lobbying aclMties- 2 During the year, has the organization, either directly or indirectly, a fgeed in any of the following ads with any substantial contributors, trustees. directors, officers, creators, key em�plo'rees, or members of their families, or principal Pwith a r taxable organization with which any such person is affiliated as an offfificer, director, trustee, majority P beneficiary? (if floe answer to any question is `Yes.' attach a detailed statement explaining the ) X a Sale, exchange, or leasing of property ?..... . ............................... . .............. . 2a b Lending of money or other extension of credit ? . . . ..... . ... . . ...... . . ................ ............................... _Lb X c Furnishing of goods, services, or faa'lities ? ...... . . . . . . . . • - • - - ......... _ . _ .. . ........ ............................... 2c X d Payment of compensation (or payment or reimbursement of expenses it more than 51,000) ?. _ ......... • .............. 2 d X e Transfer of any part of its income or assets? .. . .............. . ....... 2e X 3a Do you make grants for scholarships. fellowships. student loans, etc? (If 'Yes: attach an ..... 3a X explanation of taw you determine that recipients qualify to receive payments.) .................................. . b Do you have a section 403(b) annuity P y� employees? ... ............................... 3 X for .................. 4 Did you m- iinWin any separate account for participating donors where donors have the right to provide advice X on the use or distribution of funds? . . ............... . ................................................... ..... 4 Beason for Non - Private Foundation Status .(See instructions.) ,rganrration is not a private foundation because it is: (Please check only ONE applicable box.) A church, convention of churches, or association of churches. Section 170(b)(1)(A)n. 6 A school- Section 170(b)(1)(A)(n7_ 01so complete Part V.) 7 A hospital or a cooperative hospital service organ - ¢atom- Section 170(b)(1)(A)(iii). 8 A Federal. state, or local governwnent or governmental unit. Section 170(bxl)(A)(0- 9 A medical research organization operated in conjunction with a hospital. Section 170tbXl)(A)( i)- t=iter the hospital's name, odty, and state _ __ _ _______ --- - - - - -- 10 An organization operated for the benefit of a college or university owned or operated by a governmental unit. Section 170(b)(1)(A)(m). (Also complete the Support Schedule in Part IV A.) 11 a Q An organization that normally receives a substantial part of its support from a governmental unit or from the general public. Section 170(b)(1)(A)(vi). (Also complete the Support Schedule in Part P/-A-) 11 b A community trust. Section 170(b)(l)(AXvh7. (Also Mete the Support Schedule in Part IV-A-) 12 ©An organization that normally receives: (1) mope than 33 -1�3X of its support from contributions. membersfup fees. and gross receipts from activities related to its ctmanitabie. etc. ionc�tiorhs — to certain exceptions; and C� no more Union 33 -1i3�L of its support frarr gross irnestirment irncome and unrelated business ia�incorhe (less section 511 tax) iron businesses acquired by the organization after .kris 30. 1975_ See section 509(a)(Z)_ (Also complete the Support Schedule in Part N -A) 13 ❑An organization that is not controlled by arty disqualified persons (other than foundation managers) and supports organizations described in: (1 ) limes 5 through 12 above: or (4 section 501(c)(4). (5). or (6). if they meet the test of section 509(x)(2). (See section 509(a-) Provide the following information about the supported organizations. (See instructions.) (a) Narne(s) of supported organization(s) Line from above 14 n An organization organized and operated to test for public safety Section 509(a)(4) (See instructions -) gAA -. _ _ TEE 2L 011)9M Schedule A (Form 990 or Form 990 -EZ) 2003 Schedule A (Form 990 or )90 -EZ) 2003 ASSISTANCE LEAGUE OF TEMECOLA VALLEY 33- 0360419 Page 3 x- I R4 -WAN Support Schedule (Complete only if you checked a box on line 10, 11, or 12.) Use cash method ofaccotmting. Note: You may use the ++brkstheet in the instructions for converting from the accrual to the cash method of arrminlinn Calendar year (or fiscal year (a) beginning in). ....... . . . . .... . . . . . ► 2b02 A,, r,., 2061 2�0 (d) 1999 e ) Total 15 Gifts, grants, and contributions ruual rants- Steer 28 394 028. 372 712. 84r604. 110 978. 962,322. 16 Membership fees received..... 13,262. 18,161. 14,865. 14,878. 61,166. 17 Gross receipts from admissions, merchandise sold or services Worried, or furrishiM of facilities in any activiil, that is related b the organizaWs efr. purpose ............. 343,159. 307 078. 259 170. 18 Gross income from interest, dividends, amounts received from p*nerntr on 270,360- 1 179, 767. securities loans (section 512(aX5)1 taxable (less 5 taxes) from businesses acquired by the orgarn- izaboo after luxne A 1975...:....... 2. 19. 269. 12. 302. 19 Net income from unrelated business activities not included in line 18 . _ .... 1,000. 741. 1,741. 20 Tax revenues levied for the c r lion's benefit and ennerr id to it or expended on its behalf 21 The value of services or facilities hxnished to the organization by a governmental ur»t without charge. Do not include the value of services or facilities generally � steed to th 22 Oer income- Autttach a schedule. Do not include gam or (16ss) from sate of capitall assets . 23 Total of lines 15 through 22.... 750 451. 697 970. 359F908. 396 969. 21F2051-298- 24 Line 23n*xnline 17---- . -. - -- 407 292. 390 892. 100,738- 126, 1,025,531. 25 Enter l %of line 23.-- ..- . - - - -- 7,505. 6,980.1 3,599.1 3,970. 26 Ogganiza5ons described on Ones 10 or 11: a Enter 2% of amount in column (e), fine 24 ...... NIA... 10.1 26a b Prepare a fist for your records to slaw the name of and amount contributed by each person (otlner than a govennenfal roil or publicly supported organization) whose total gifts for 1999 through M exceeded the amount shown in in 26a. Do not file this Ost with your rebim. Enter the told of all these excess amounts ............... . .................. ............................... ► 26b c Total support for section 509(a)(1) test- Enter fine 24, column (e) . ........................................ ► 26c d Add: Amounts from colurm (e) for lines: 18 19 22 26b 26d e Public support (line 26c minus fine 26d total . ........................................................... 1 Public w (line 26e nunnerad divided by One 26c denominator ...................... 26f $ "SO 27 OrganizatioAs described on One 12 a For amounts included in lines 155 16, and 17 that were received from a disqualified person. prepare a list for your records to show the name of, and total amounts received in each year from, each 'disqualified person. Do not file tMs Ost with your return. Enter the sum of such amounts for each year: ------ - - - - -- ------- - - -- -0 )------- - - - - -- 02002) _ - - _ _ -- - - - 0 _ (2001) 0 . (2000) 0 . 999 0. Vor any amont inclided in line 17 that was received from each person (other than -disqualified peusons�, prepare a list for your records to show the name of. and amount received for each year that was more than the larger of (1) the .amouttt on line 25 for the year or (2) 55,000_ (Include in the list organizations described in lines 5 through -11, as well as indivnduals.) Do not file tits Ost with your return. After computing the difference between the amount received and the larger amount described in (1) or M enter the suan of these differences (the excess amounts) for each year: ------- - - - =1) --- U_(2000 }_ 0. 0999) 0. - - - - - -- ----- - - - Z1, -- ------- - - - --- c Add: Amounts from column (e) for lines: 15 _ 962, 322. 16 166. 17 1,179, 767. 20 21 27c 2,203,255. d Add: tine 27a total _ .. _ _ 0. and line 27b total............ 0. 274 0 . e Public support (fine 27c total minus fine 27d total .................... ...... ......... ... . ► 27e 2,203- 2 5 . I Total support for section 509(a)(2) test: Enter amount from line 23, column (e)..:. 111-27f 2,205,298. = g.Public-stipport percentage (line 27e (nuimerator) 4ivlded by line 27'f (denomirhato0) _ .- _., , . '' .27 99..: 91...X`. = 6 Investment income percentage Qim 18, cidumn a numerator divided by IM6 Z71 denominator i- 27h - - 0 : 01- a 28 Unusual Grants: For an organization described in. line -10; 11. or 12 that received any unusual usual grants dur 1999 through 2002, epare a list for your records to show, for each year the name of the contributor, the date and amount of the grant, nand a brief description of the _ _ nature of the grant. Do not file this list with your return. Do not include these grants in lire 15. BAA -TEEiwoox oer2910 Schedule -A (Form 990 or 990 -EZ) 2003 GENDA Ff EM NQ-- r%nA= I n! nF ­nAla (See instructions-) that checked the box on line 6 In Pad IV) Does the organization have a racially nondiscriminatory policy toward students by statement in its charter, bylaws other governing instrument, or in a resolution of its governing body? ................................................. 30 Does the organization include a statement of its racially nondiscximinatog poky toward students in all its brochures, An cataloggues. and other written commmlications with ft public dealing with student Mn"ons. Programs. and-scholarships? ................................................................................................ 31 Has during the period of solnatabon for students. or during the registration period of it teas no solicitation Program. in a way that makes the policy krnown to all parts of the general corrtrntxuiy d serves? ...... - • . . . ...... . ..... . .. . ............ If 'Yes; please describe; if No,' please explain. M you creed more space, attach a separate statement.) ---------------------------------------------------------- -------------------------------------------------------- --------------------------------------------------------- '6� ------------------------------------- 3 2 ----------------- the organization nuik-dain the following; a Records Indicating the racial cornposition of UV student body. faculty. and administrative staff? ....................... b Records documenting that schoWshps and other financial assistance are awarded on a racially nondiscriminatorybasis?----------. ...............................---------- --- -- ..--------- - - - - -- -------- - - - -._ c Copies of all catajoqtm. brochures. announa mwnts and other written communications to the public dealing with student admissions, programs, and ;a;6;i�? .............................................................. d Copies of all material used by the organization or on its behalf to solicit contributions? ......................... . .... .. If you answered 74o' to any of the above, please explain. (If you need more space, attach a separate statement.) --------------------------------------------------------- ------------------------------------------ --------- Does the organization discriminate by race in any way with respect to: a Students' rights or privileges? ..................................................................................... bAdmissions policies? ............................................................................................... c Employmerid of facutly or administrative staff? ...................................................................... d Scholarships or other financial assistance? ......................................................................... eEducational policies? ............................................................................................. fUse of facilifiest ................................................................................................. gAthletic programsZ .................................................................................. I ............. h Other extracurricular activities? .................................................................................... It you answered 'Yes' to arty of the above, please explain. (if you need more space, attach a separate statement.) -------------------------------------------------------- -------------------------------------------------------- -------------------------------------------------------- 34a Does-the organization receive any financial aid or assistance from a governmental agency? ........................... ,,k Has right to such aid ever been revoked or suspep&dZ .... ........................................ f You answered-'Yes' .to either 34a orb, please explain using -an attached statement. 35 Doent M* organization certify that it has sections 4.01 ttwough 4.05 -of Rev Proc -nondiscrimination? It *No.' attach an ex BAA with the I Ii able requirements of 5-2 C.B. Miccovering racial 1 -35 Schedule A (Form 9% or 990-EZ '003 - ._ACEfiD A ITEM NO JjV a OF S IE giedule A (Form 990 or 990 -EZ) 2003 ASSISTANCE LEAGUE OF TEMECULA VALLEY 33- 0360419 Page 5 MAW Lobbying Expenditures by Electing —Public Charities (See instructions.) (Fo be completed ONLY by an eligible organization that filed Form 5768) N/A Check ► a H if eie-organization belongs to an affiliated group. Check ► b if you checked 'a- and - limited control' rovisans a Limits on Lobbying Expenditures . (The term ' expenditures' means amounts paid or incurred) 36 Total lobbying expenditures to influence public opinion (grassroots lobbying) ......... 36 37 Total lobbying expenditures to influence a legislative body (direct lobbying) .......... 37 38 Total lobbying expenditures (add lines 36 and 37) ... ............................... 38 39 Other exempt purpose expenditures ................ ............................... 39 40 Total exempt purpose expenditures (add fines 38 and 39). ........................... 40 41 Lobbying nontaxable amount. Enter the amount from the following table - If the amount on line 40 Is - The lobbying nontaxable amount 1s - Not over $500,000 ...................... 20% of the amount on fine 40..... Over $500A00 but not over $1000A00........... 5100A00 phis 15% of the excess over SSOMM Over f lAODA00 but not over S1,SOq;000---------- S175�000 phis 10% of the excess over $IA0QA00 41 Over $1,500,000 but not aver $17.000,000......... WSM plus 5% of the our over $1,5wm Over $17 ,000,000! ...................... ;1,000,000 ...................... 42 Grassroots nontaxable amount (enter 25% of line 41) ............................... 42 43 Subtract fine 42 from One 36. Enter -0- if line 42 is more Than fine 36 ................ 43 44 Subtract line 41 from line 38. Enter -0- it line 41 is more than line 38 ................ 44 Caution: N There is an amonrht an either line 43 or line 44, you must file Farm 4720. Affiliate group To completed totals electing 4 -Year Averaging Period Under Section 501(h) (Some organizations that made a section 501(h) election do not have to complete all of the five columns below. . See the instructions for fines 45 through 50.) Calendar year (a) beginning (or fiscal - 2003 45 Lobbying nontaxable amount .............. 46 Lobbying coft amount 47 Total lobbying expenditures --------- 48 Grassroots non- (4) (4* 00 (e) 2002 on- Lobbying Expenditures During 4 -Year Averaging Period 2002 l 2001 2000 Total 49 r � arm eam Um 50 Grassroots lobbying ex toes......... Lobbying Activity by Nonelecting Public Charities -- (For reporting only W organizations that did not complete Part NI A) (See lostructions.j MIA During the year. did the organization attempt to influence national, state or focal islation, ding any attempt to influence puWc opinion on a legislative matter or referendum, through including use of: aVolunteers ..................... ..................................................... b Paid staff or management (include compensation in expenses reported on lines c through h.) ......... c Media advertisemermts ............................................ ............................... d Mailings to members, legislators, or the public . .. ............................... . ................. . e Publications, or published or broadcast statements .............. ............................... . .. . f Grafts to other organizations for lobbying purposes ............ ..... . .......... . ....... . ......... . 9Dired- 666tact with legislators, their staffs, government officials, or a legislative body.... h Rallies, demonstrations, seminars,. conventions, speeches, lectures, or any other means- -1 Total lobbying expenditures (add lines c. through h.) . .............................. U 'Yes' to arty of the above. also attach a statement giving a detailed description of the lobbying activities- eAA Schedule A (Form 990 or 9% -EZ) 2003 7EEA040% 08!28/03 PACE orm 990 or 990-EZ T.VAr.rIF OF TEMECULA 33-0360419 Page 6 Transfers To and Transactions and Relationships With Nonchantatme [See instructions) of the following with other organization described in section 501(c) oi�qanrzation directly or indirectly engage J9 ilical =C=("other vim section 501(c)(3) o(ganizations)or in=n 527. relating to poetical organizations? Yes No a Transfers from the reporting organization to a noricharitable exempt organization Of. ...... 51a 0i X (i)Cash ............................................................................................... X (11)Other assets ---------------------------------------------------------------------------------------------- b Other transactions: b 10 X @Sales or exchanges of assets with a noncharitable exempt organization ....................................... b (it) X (H)Purchases of assets from a noncharitable exempt organization ................................................ b (Ifi X (u�Rental of facilities, equipment, or other assets ... . ...... . . . . ............ . . . .. . - •••- • - -• -- - - - -- b n -2L QN)Rental of facilities, equipment, or other assets ----------------------------------------------------- ----------- b X (n)Reimbursement arrangements... ........................................................................... (y)Loans or loan guarantees ............. ; .............................................................. ..... ,:::.. b X (vi)Performance of services or membership or fundraising solicitations ............................................ C X c Sharing of facilities, equipment. mailing lists. other assets, or paid employees .................................... [Al d If the answer to any of the above is 'Yes,' complete ft. folkyMnq schedule. Co (b) should show ft fair market valup of the goods. other assets, or services given by tI)e r "inq organization. If the or zation rg =ikless than fair marliet value in other ;sets or services received: any transaction or sharing 2nMTSM 5uiuw in the value of the . (C) (d) Lin(ea)no. I Amourillolved Name of noricharitable exempt organization Des oon of hallsks. Irwisaclion% and sW" waWmerb NI 52 a Is the organization directly or indirectly affiliated with, or related to, one or rnore tax-exempt organizations described in section 501 (c) of the Code (other Dian section 501(c)(3)) or in section 527 ? ........................... Yes N No BAA TEEA0406L 09/0.5 WW z>cneouic H trEmm :77v AGENDA ITEPIP vmna �D4- OF Schedule B owe W. 3545 -0047 (FOfT" 990, sF) or 990 -PF) Schedule of Contributors rtevem� ,e STen tine 1 of Form 99990- QZandt990 -PF (see instructions) �oo� Ma"M of lid licat on M.nb.r ASSISTANCE LEAGUE OF TEWCOLA VALLEY 33- 0360419 Organization type (check one): Filers of. Section: Form 990 or 990-EZ H527 501(c)( 3 ) (enter number) organization 4947(a)(1) nonexempt charitable trust not treated as a private foundation political organization Form 990-PF 501(c)(3) exempt private foundation 4947(a)(1) nonexempt charitable bust treated as a private foundation H501(c)(3) taxable private foundation Check if you organization is covered by the General Rule or a Special Rude. (Note: Only a section 501(c)M. (B), or (70) organization can check box(es) for both the General Rine and a Special Rude — see i ishucgons.) General Rule — 0 For organizations filing Form 990, 99042, or 990-PF that received. during the year. $5.000 or more (in money or property) from any one contributor. (Complete Parts 1 and 11.) Special Rules — E] For a section 501(c organization filing Form 990, or Form 990 -EZ, that met the 33 -113% support test of the regulations under sections 509( 1N170(bxl) )(vi) and received from any one contributor, during the year, a contribution of the greater of $5,000 or 2% of the a on lane 1 these forms. (Complete Parts 1 and 11.) For a section 501 (q)(7). (8), or (10) organzation filing Form 990, or Form 990-( that received from ar y one contributor, during fhe e aggregate cpntr�bubons o * beouests of more than $1.000 for use exclusively for religious, charitable, scientific. literary. or educational �� purposes. dr the prevention of cruelty to children or animals. (Complete Parts 1. Il, and 10.) For a section 501(c)(7), (8), or (10) organization filing Form 990. or Form 9904EZ, that received from any one cortrixutor. during the year. some contributions for use exckusiveyyfor religious, charitable. etc, purposes, but these contributions did not aggr to more than $1, 000. (If this box is checked, enter here the total contrib utions that were received during Uhe year for an ex'dus- eGgious. charitable. purpose. Do not complete any of the Parts unless the General Rule applies to this organization because it received nonexdusively religious, charitable. etc, contributions of $5.000 or more.dunng the year.)..... ., ............................. ► $ caution: Organ&afrons that are not covered by the General Rule and/or the Rules do not fde Sdhedule B (Form 990, 990-tZ or 990-PF) but they must check the boor_ in the heading of their Form 9910, Forme or on line l of their Form 990 -FF, to cerV& 6W they do not meet the filing requwemer& of Schedule B (Form 990, 990-FZ or 990-PO BAA For Paperwork Reduction Ad Nod e, see the instructions Schedule B (Form 990.9904EZ, or 990 -M (2003) for Form 990 and Fora 9904Q. TEEA0701L 32110103 AGENDA ITEM NO _ qS- PAM ' $D5 t 1=� Schedule E (Form 9W. 99u-tL 222-rrP S'"I Name of otyatwz ban ASSISTANCE LEAGUE OF TEMECULA VALLEY Contributors (See Specific Instructans -) to 1 of V .a (b) e jco�ntkEbuotbions (d) Type of contribution Number Name, address, and ZIP + 4 CITY OF TEMECULA _ -- -- ---------------- — — — — - -- Mv Person PayroN 1 43200—BUSINESS—PARK DR__ - -_ $_____ 14L000_ Noncash (Complete Part If it there is a noncash contribution) TEMECUL , —CA 92590 — — — — — - - -- (b) Name, address, and ZIP + 4 (c) Aggregate contn'butions (d) Type of contraxedon (a) Number 2 GENERAL _ALL LESS THAN $5000 — _ _ — — — — — — — — — — Person X . — — — PayroN NA ----- ____ -- ! $___ -- 591 -016_ Noncash ------------------ (Complete Part N if there N/A _ is a noncash contrku fim.) (a) Number (b) Name, address, and ZIP + 4 (c) conbibutions (d) Type of contribution 3 CITY OF MURRIETTA, CA -------------- - - - - -- Person Payroll 26442 BECKMAN COURT---------------- - - - --- $ —___ -- 81000_ Noncash (Complete Part N if there MURRIETA1_CA 92562 is a norfrash cordribution ) (a) (b) (c) (d) Number Name, address, and ZIP + 4 contributions Type of contrftGon 4 GENERAL PUBLIC — ----- - - - - - — Payroll N/A ------------------------------ - - - - -- $_ _ _ _ _2 8 71631_ Noncash (Complete Part it if there N/A - - - -- is a noncash contrbution.) (a) (b) (c) (d) Number Name, address, and ZIP +4 Aggmgate covitnibutkins Type of contribi" -------------------------------------- Person Payroll - - - - -- $ - -- - - - - -- Noncash ---------- - - - - -- ------------ (Complete Part II if there is a nor c contribution.) (a) (b) (c) (d) Number Name, address, and ZIP + 4 Aggregate contributions Type of contribution Person - _ — ---- _----------------------- - - - - -- — Payroll -. - _ _ Noncash (Complete Part it if there is a noncash cordribution.) gqA 7EEM70a OVINo3 sGlec"e is [rorm / �c�nN7 AGENDA ITEM NO. 7 PA-19L? CFA . Schedule B (Form 990, 990 -E2, or 990 -PF) Page 1 to 1 of Part 9 Nam. of oryariatlo„ nao%w Wwwfic rtum number ASSISTANCE LEAGUE OF TEMECULA VALLEY 133-0360419 W=w Noncash Property (see Specific to bwions_) a NPartI Description of nonce property given FMV (or estimate Date (iedceived `� Part 1 (see instructions CLOTHING AND FURNISHINGS DONATED BY GENERAL PUBLIC FOR 4 IN THRIFT -------- SHOP -------------------------- SALE ------------------------------------------ -------------------- ---- - - - - -- $----- 287,631_ -- - - - - -- a No from Description of non�h property given rMV (a cestimate) Date (relived Part i (see instructions) ------------------------------------ ---------------------------------- - - - - -- $----- - - - - -- -- - - - - -- No!a fr)an Description of no sh property given FMV (or est M" Daft (rem icaved Part 1 (see instructions) ---------------------------------------- - - --- ------------------------- - - - - -- - - - - $----- - - - - -- -- - - - - -- a NPa rolm Description of non%)ash property given FMV (or esfi'n=? Date received (see instructions) - - - - - - - - - - - - - - - - --------------- - - - - -- $---- - - - - -- -- - - - - -- No. from m Description of noncash Property given (see F N (a�) Dale (received - - - - - - - - - - - - - - - - - - - - - -t- - - - - - - - - - - - - - - $------------ - - - - Ho!9 im Description of nonash property given FMV (or estimate Date recehred (see instructions; BAA - - :Schedule 8 (Form 990,990-E7, or 990 -PQ(2003) -` - - -- -. - - TEEA0703L oan3/03 y� PACE �D'� t 31 paw 1 to 1 Of Part III Schedde 6 (form 990. 990-EZ, or 990-PF) (2003) Wff"caden numbw is. f Orgarams- ASSISTANCE LEAGUE OF TEMECULA VALLEY -.% Exclusivetv religious, charitable, etc, individual cons butlonstosection wig., Wr At orn organizations aggregating more than $1,000 for the year (complete cols (a) through (e) and the following line entry.) For organizations co feting Part III, enter total of exclusively religious. charitable. etc, N/A contributions of S11 A or less for the year. (Enter this information once - see instructions_)........... ""$ No. from P (b) (C) ' '01 -------------- - - - - -- ----------------------- BAA 7EFA0704L 08113103 Schedule B (Form 990,990-E7, or err rr Vuw-w) AMC% ITEM. NO- q5 P --' --3QS C* AC5 Form 88060 oo«-,br axat neparbwit lrriemal iler.1"s.1 I-.?- r Application for Extension of Time to File an Exempt Organization Return ► Fite a for each OMB No. 1545 -1709 • If you are filing for an Automatic 34Month Extension, complete only Part I and check this box . . .... . . . :........................... . ► X • If you are fling for an Additional (not automatic) 3 -Month Extension, complete only Part 9 (op page 2 of this form), Note: Do not complete Part N unless you have already been granted an automatic 3-month extens✓on on a pmviously lded Form BBi6E[ 11 1110 Automatic 3 -Month Extension of Time — orgy submit original (no copies needed) Note: Form 990- Tcorporations requesting an automatic 6 -month extensions - check tlus box and complete Part I only ► Q AN other corporations (mxhuft Form 990 C filers) must use Form 7004 to request an extension of time to hie wrote tam reksm. Parbrers/ym REWs and busts must use Fam 8736 to request an extension of time to file Farm 1065, 1066, or 1041 - ru— of fsanpt owni-iion I E„oloye, Id"0pcmdan M Type or pent Fite b the due date for filing your return. See insbvctions. AWL and owns or suRe number. M a Mbox. see 28720 VIA MONTEZUMA CI V. bwn or post office. for a foreign address, see TEIJECULA, CA-92590-2510 Check type of return to be filed (file a separate application for each return): Form 990 Form 990 -T (corporation) Form 4720 Form 990-BL Form 990-T (Section 401(a) or 408(a) trust) Form 5227 Form 990-EZ Form 990•T (trust other than above) Form 6069 Form 990-PF Form 1041 A Form 8870 • If the organization does not have an office or place of business in the United States. check this box ................................ ► • If Itus is for a Group Return, enter the organization's four digit Group Exemption Number (GEN) If this is for ft whole group. check this box. 10'[]. If it is for part of the group. check this box- ► o and attach a list with the names and EINs of all members the extension will cover. 1 1 requestAhn automatic 3 -month (6-montI% for 990-T corporation) extension of iirne until 1/15 .20 05 . to file the exempt organization return for the organization reamed above. The extension is for the organization's return for ► calendar year 20 or ► 8 tax year beginning 6/01 .20 03 . and ending 5/31 .20 04 2 If this tax year is for less than 12 months, cobalt reason: o Initial return Real return Change in accounting period 3a If this application is for Form 99043L, 990 -PF, 990-T, 4720. or 6069, enter the tentative tax, less any norrefixhdabie credits. See instructions ........ ............................................................. $ 0. b if this application is for Form 990-PF or 990-T, enter any refuxxfabie credits and estimated tax payments made. Include arry prior year overpayment allowed as a credit ...................................................... $ 0. c Balance Diu. Subtract One 3b from fine 3a. Irlchxfe with this form, or if required, deposit with F1D coupon or, if required, by using EFiPS (Electronic Federal- Tax raynrerrt. System)_ 4 e instructions . $ 0. Signature and Verification under penalties of perjury. ! dcciare that 1 bare eaamwmd this rebm. iwdndwg acm,ry r"m sd�les and sbbmerds„ and b the best of my knowledge and belief. it a bun. woneet, aid oomplehe, and bat 1h a ur.y mad b prepare fia Corm BAA For V6 on Ad re'. ► naen ► 1 O I CIO &A Form 8868' (12 -2000) Ft ZMIL 01105M AGENDA ITEM NO. Y� PAOFE ._LQg___OF_ 2003 -� Federal Statements ASSISTANCE LEAGUE OF TEMECULA VALLEY Page 1 33- 0360419 Statement 1 Form 990, Part 1, Line 9 Net Income (Loss) from Special Events Less Less Net Gross Contri- Gross Direct Income SIVcIA Events Receipts butions Revenue Expenses (Loss) GALA BALL 58,968. 0. 58,968. 11,654. 47,314. WINTER WONDERLAND 12,463. 0. 12,463. 6,309. 4,720. 6,154. 5,141. MISC. FUNDRAISERS 9,861. 0. 9,861. Total '�- 81,292. 0. $ 81,292. $ 22,683. 58,609. Statement 2 Form 990, Part 1, Line 10 Gross Profit (Loss) From Sales Of Inventory THRIFTSHOP SALES ...................................•••••••••.... ............................... $ 269,263. GrossSales... ..................................... _................ ............................... 269,263. Less Returns & Allowances ............. • • • • • • • • ................ ............................... 0. NetSales .... : ............................................................. ......................... $ 269,263. Less Cyst Of Goods Sold ...................................... ............................... 269 263. Gross Profit From Sales Of Inventory ................... ............................... 0. Statement 3 Form 990, Part 1 Line 16 Payments to Affiliates Name and Address Purpose of Payment Amount NATIONAL ASSISTANCE LEAGUE DUES $ 6;270. 3100 WEST BURBANK BLVD. BURBANK, CA 91510 Total $ 6,270. Statement 4 Form 990, Part 11, Line 22 Grants and Allocations Noncash Grants and Allocations Donee's Name: CHILDREN -LOW INCOME FAMILIES Description of Property: CLOTHING, BOOKS, ETC Book Value:.. 178.,734. Method Used to Determine BV COST Fair Market Value.- $. 178,734: ;,]Method: Used to Determine-FMV: COST Total Grants and Allocations 178 734. CENDA'MEM 110. YS 2003 Federal Statements Page 2 ASSISTANCE LEAGUE OF TEMECULA VALLEY 33- 036041 Statement 5 Form 990, Part 11, Line 43 Other Expenses Statement 6 Form 990, Part 111, Line e Statement of Program Service Accomplishments Program Grants and Service Description Allocations Expenses DOMESTIC VIOLENCE PROGRAM 2,860. OTHER PROGRAMS 12,560. Total 0. $ 15,420. Statement 7 Form 990, Part IV, Line 57 Land, Buildings, and Equipment (A) (B) (C) (D) Basis Igprec. Program Management $ 10,900. $ 10,900. Total Services & General Fundraising ADVERTISING 2,472. 403. 101. 1,968. AUTO EXPENSE 5,219. 62,083: 206,084. 5,219. BANK CHARGES 5,919. 140,196. 717,064. 304,986. 5,919. INSURANCE 2,082. 2,082. MEMBERSHIP EXPENSE 9,859. 9,859. MERCHANDISE SOLD - 4,230. 4,230. MISCELLANEOUS 1,858. 1,858. PROFESSIONAL SERVICES 16,176. Total 47,815. 6 471. $ S 874. 1 617. T15, 517. 8,088. 25,424: Statement 6 Form 990, Part 111, Line e Statement of Program Service Accomplishments Program Grants and Service Description Allocations Expenses DOMESTIC VIOLENCE PROGRAM 2,860. OTHER PROGRAMS 12,560. Total 0. $ 15,420. Statement 7 Form 990, Part IV, Line 57 Land, Buildings, and Equipment Statement 8 Form 990, Part IV, Line 58 Other Assets y .DEPOSITS .............. .......... .............---.............. .................,............. ... 8 0 0 . - PREPAID EXPENSE ........ :..............:.•-------•-------........................................... 4,575. Rouhctii�g ............... ..................................................................... 1 . Total $ 5,376. -- I..*#, �#WWWA ITEM NO. �i� Accum. Book Catego Basis Igprec. Value Automobiles / Transportation Equipment $ 10,900. $ 10,900. $ 0. Furniture and Fixtures 42,001. 21,710. 20,291: Buildings 560,786. 210,293. 350,493. Improvements 268,167. 62,083: 206,084. Land Total 140 196. 1,022,050. 140,196. 717,064. 304,986. Statement 8 Form 990, Part IV, Line 58 Other Assets y .DEPOSITS .............. .......... .............---.............. .................,............. ... 8 0 0 . - PREPAID EXPENSE ........ :..............:.•-------•-------........................................... 4,575. Rouhctii�g ............... ..................................................................... 1 . Total $ 5,376. -- I..*#, �#WWWA ITEM NO. �i� 11-01 AM 09104A5 Acc+ual Basis .*_�_ ASSISTANCE LEAGUE OF TEMECULA VALLEY Profit & Loss June 2004 through May 2005 bcome Contributions ku-me 1598 - SUPPORT a REVENUES 1502 - FUNDRAISING 2199 - GALA INCOME 2101 - DONATIONS 2102 - RESERVATIONS 2103 • BAR 2107 - SILENT AUCTION 2109 - CLOTHING THE CHILDREN 2199 - GALA INCOME - O&ff Total 2199 - GALA INCOME 1504 - THRWT SHOP SALES 1508 - WINTER WONDERLAND REVENUE Total 1502 - FUNDRAISING 2349 - GRANTSIDONATIONS 2301 - GRANTS 2382 - MEMORML 2303 - THRIfT SHOP DONATIONS 2307 • CHAPTER ROOM DONATIONS 2306 • DONATIONS OSS 2316 - PROJECT SMILE (Project Smile) 2399 - GRANTSIDONATIONS - Other T4AW 2399 - GRANTSIDONATIONS Total 1598 - SUPPORT & REVENUES 1706 - INTEREST INCOME 1899 - MEMBERSHIP - INCOME 1398 - DUESIFEES RECEIVED 1801-PROFESSIONAL 1x02 • PROVISIONAL (PROVISIONAL DUES) 1803 - ACTIVE 1804 - COMMUNITY 1605 - ASSOCIATE 1806 - SUSTAINING 1607 - PROVISIONAL FEES (PROVISIONAL FEES) 1606 - ACTIVE -ON LIMITED SERVICE 1809 -PALS 1810 - LIFE 1812 - PRO'S 1896 - DUESIFEES RECEIVED - Other Total 1898 - DUESIFEES RECEIVED 2299 - MEMBERSHIP EVENTS 2200 - CONVENTION INCOME 2209 - PROVISIONAL ACTIVITY 2210 • SINRT 2212 - ALTV PINS- REVENUE 2214 - REIMBURSED EXPENSE 2259 • MEMBERSHIP EVENT'S - Other Tow 7294 - MEMBE tsw EVENTS 1899 - MEMBERSHIP DEVELOPMENT- INCOME - Other Total 1899 - MEMBERSHIP DEVELOPMENT - INCOME Total bux me Jun •04 - May 05 36,741.18 1,88424 17,957.80 1,228.00 5,850.00 1,400.00 2,281.40 30,601.44 245,748.11 4,190.00 280,539.55 38,227.15 2,800.00 641.00 5,824.50 3,513.40 5,117.75 5,551.10 61,674.90 342,214.45 23.46 1 065.00 1,555.00 4,665.W 3,600.00 2,315.00 2,795.00 190.00 1,030.00 185.00 1,000.00 150.00 2,000.00 20,550.00 350.00 419.00 38.00 8.00 1,453.55 2,816.00 5,084.55 855.00 26,489.55 4115,468.64 405,468.64 Page 1 AGENDA ITEM ISO. YJ PRICE_ 11.01 AM ASSISTANCE LEAGUE OF TEMECULA VALLEY 09194"D5 Profit & Loss Aecnual Bases June 2004 through May 2005 EVense 3099 - ALLOCATED EXPENSES 5700 - OCCUPANCY EXPENSE 3002 - LOAN INTEREST 3004 - GAS 3007 - WATER 3009- TELEPHONE 3010 - INSURANCE 3011 - COPIER RENTAL 3014 - BLDG. REPAIRSI1MPROVJMAINT. . 3015 - LANDSCAPE MAINTENANCE 3016 - ALARM SYSTEM 3017 -TRASH 3018 - PROPERTY TAXES 3015 - JANITORIAL 3020 - HOA DUES 3021- EDISON 3036 - LOAN PRINCIPAL a INTEREST 3184 SAFE DEPOSIT BOX 3107- FEES s PERMITS 3129 - HNSURANCEIBOARD 3130 - PROFESSIONAL F 3140 - PROFESSIONAL FEESACCOUNTING Trial 3700 - OCCUPANCY EXPENSE TOW.3099 - ALLOCATED EXPENSES 3798 -MEMBERSHIP EXPENSE 3199 - MANAGEMENT 3003 - POSTAGE 3025 - PRINTING 3101 • CHAPTER HOUSE SUPPLIES A- SMACKS B - SUPPLIES 3101 - CHAPTER HOUSE SUPPLIES - Odw TOW 3101 - CHAPTER HOUSE SUPPLIES 3110 - PRESIDENTS EXPENSE 3113 - HISTORIAN 3116 - WCOMNC PRESIDENTS CONFERENCE 3118 - NAL WORKSHOPS 3121 - CONVENTION 3122 - 3124 • NEWSLETTER .3126 - PUBLIC RELATIONS 3150 - MAO ALLOCATED EXPENSES 3701- HOSPITALITY 3702 - PROVISIONAL EXPENSE 3708 - SHIRTS 3712 - MEMBERSHIP RECRUITMENT 3707 - PROFESSIONAL AUX EXPENSE 3703 - MAL DUES 3784 - ALTV44 NSIBAOGES 3105 - MEMORIAL GARDEN & PLAQUE Total 3199 - MANAGEMENT 37N - MEMBERSHIP EXPENSE - Other TOW YM - MEMBERSHIP EXPENSE Jan V4 - May 05 1,292.84 525.36 2,234.80 2,957.10 17,215.86 2,793.17 18,053.57 2,000.00 1.165:00 4,581:87 13,841.35 9,840.00 2,959.30 14,819.69 1,147.40 25.00 263.00 2,100.00 3,684.10 4,950.00 106,449.41 106,449.41 237.56 2,465.88 551.95 585.81 1,238.85, 2,376.61 3,089.42 10127 350.00 350.00 915.00 1.367.62 2,695.91 1,111.61 32.84 1,964.71 911.45 933.27 206.00 150.00 4,485.00 373.17 218.09 24,356.01 33227 24.68828 `"00 ./I Page 2 AGENDA ITEM NO. (-IJ PACE 31?) OF Page 3 AGENDA ITEM N'0._VL5_ PACE 1-�OF _314 ASSISTANCE LEAGUE OF TEMECULA VALLEY 11:01 AM Profit & Loss 0910405 Accrual Basis June 2004 through May 2005 3299 - FUNDRAISING EXPENSES 3298 - GALA EXPENSE 3201 - Sit-ENT AUCTION 29725 2203 - FOOD 4,355.63 3204 • DECORATIONS 872.14 3206 - ENTERTAINUT 525.00 3208 - INVITATIONS 180.08 3209 - POSTAGE 180.00 3210 - RENTAL 1,02721 3214 - BAR EXPENSE 75.00 Total 3298 - GALA EXPENSE 7,512.31 3599 - FUNDRAISING EXPENSES 309 - ASSISTEENS 7,300.00 3510 - PROS 3,046.00 3500 - THRIFT SHOP EXPENSE 3501 -SALES TAX EXPENSE 11,925.00 3502 • THRIFT SHOP ALLOCATED EXPENSES 59233 3 -SUPPLJES-1`HRWTSHN)P 6,482-11 3611 - BANKIMMCHANT CHARGES 3,314-36 3698 - AUTO EXPENSE 350 • REPAIRS 391.40 36" - GASOLINE 91.79 3505 - DMV FEES 328.00 3506 • INSURANCE 2,5204I Total 3598 - AUTO EXPENSE 3,331.60 3900 - THRIFT SHOP EXPENSE - O#W 164.78 Total 3500 - THRIFT SHOP EXPENSE 25,810.18 35I6 - WINTER WONDERLAND 2,257.78 Total 3999 - FUNDRAISING EXPENSES 38,40-96 Total 3299 - FUNDRAISING EXPENSES 45,92627 3499 • PROGRAM SERVICE EXPENSE 3400 - OSS 3401- OSB44EALTH CLERKS (OSS HEALTH CLERKS) 2513 3402.088- CLOTHING 99,675-34 3403 - 09B•3HIf' 3.930.34 3404 - OSO.SUPPI.1ES I ✓92.02 TOW 3400 - OSB 105,323.43 KOO 3430 - KOS ON THE BLOCK 166.99 3431 - KOO ALLOCATED EXPENSES 41.73 Total KOB 208.72 SMILE 3451 - SMILE ALLOCATED EXPENSES 615.00 Total SMILE 615.00 3406 - SCHOLARSHIPS 3408 - HIGH SCHOOL SCHOLARSHIPS 4.500-00 3406 • SCHOLARSHIPS - Odwr 5,000.00 TOW 3406 - SCHOLARSHIPS 9,500.00 Total 34" - PROGRAM SERVICE EXPENSE 115,647.15 37" - MEMBERSHIP DEVELOPMENT EXPENSE 36" - SOCIAL EVENTS 3698 - ANNUAL MEETING 3601- ANNUAL MEETING REVENUE -1.701-67 3602 - ANNUAL MEETING EXPENSE 2,656.65 Total 3698 - ANNUAL MEETING 954.98 Page 3 AGENDA ITEM N'0._VL5_ PACE 1-�OF _314 CITY OF LAKE ELSINORE JOINT REPORT TO CITY COUNCIL AND REDEVELOPMENT AGENCY -MOW TO: MAYOR AND CITY COUNCIL CHAIRMAN AND REDEVELOPMENT AGENCY FROM: ROBERT A. BRADY, CITY MANAGER DATE: JANUARY 10, 2006 SUBJECT: INDUSTRIAL DESIGN REVIEW NO. 2005-01 APPLICANT: KIRK MOELLER, MCARDLE ASSOCIATES ARCHITECTS, 5838 EDISON PLACE, SUITE 100, CARLSBAD, CALIFORNIA 92008 REQUEST: The applicant requests approval of: ■ Industrial Design Review No. 2005 -01 LOCATION: The project is located on Pasadena Street near the corner of Central Avenue (APN 377- 130 -030 within Redevelopment Project Area No. 1. BACKGROUND: At their regular meeting of December 20, 2005, the Planning Commission recommended adoption and approval of the following: Resolution No. 2005 -159 adopting Findings of Consistency with Section 6.0 of the Multiple Species Habitat Conservation Plan (MSHCP). • Resolution No. 2005 -160 approving Industrial Design Review No. 2005 -01. --M./ AGENDA ITEM N0. � PAGE 1 OF,__�, �"` REPORT TO CITY COUNCIL JANUARY 10, 2006 Page 2 of 3 DISCUSSION: The applicant spoke in agreement with the Staff Report and Conditions of Approval with the exception of Condition No. 22 which was revised as shown in the attached Conditions of Approval. Upon deliberation the Planning Commission voted to recommend approval of the project to City Council. RECOMMENDATION: 1. The Planning Commission recommends that the City Council adopt the following- City Council Resolution based on the Findings, Attachments "1" through "8" and the revised conditions of approval: • Resolution No. 2006 - 0' adopting Findings of Consistency with Section 6.0 of the Multiple Species Habitat Conservation Plan (MSHCP). • Resolution No. 2006 -01-/ approving Industrial Design Review No. 2005 -01. 2. Staff recommends that the Agency Board concur with the City Council adoption of the resolutions referenced above. PREPARED BY: APPROVED FOR AGENDA BY: ATTACHMENTS: LINDA M. MILLER, AICP PROJECT PLANNER e MANAGER'S O: CUTIVE DIRECT 1. Vicinity Map 2. City Council Resolution No. 2006- _ with Section 6.0 of the Multiple (MSHCP). ICE R'S OFFICE adopting Findings of Consistency Species Habitat Conservation Plan AGENDA ITEM NO. PAGE= OF. Z....�.. REPORT TO CITY COUNCIL JANUARY 10, 2006 Page 3 of 3 3. City Council Resolution No. 2006- approving Industrial Design Review No. 2005 -01. 4. Conditions of Approval (Revised). 5. Planning Commission minutes from the hearing of December 20, 2005 were not available at this time. 6. Planning Commission Staff Repot, Resolutions and Conditions of Approval of December 20, 2005. 7. General Biological Resources Assessment/Full sized exhibits of Industrial Design Review No. 2005 -01. 8. Color Exhibits (mounted on board, presented at Hearing). AGENDA ITEM NO. PAGE 3 OF 5 Z._ VICINITY MAP INDUSTRIAL DESIGN REVIEW NO. 2005 -01 CITY COUNCIL JANUARY 10, 2006 AGENDA ITEM NO. I PAGE rL..- 0 F -5-2 RESOLUTION NO. 2006- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, ADOPTING FINDINGS OF CONSISTENCY WITH SECTION .6.0 OF THE MULTIPLE SPECIES HABITAT CONSERVATION PLAN (MSHCP) FOR THE PROJCT KNOWN AS INDUSTRIAL DESIGN REVIEW NO. 2005 -01 TO BE LOCATED ON PASADENA STREET WHEREAS, a site specific focused survey (General Biological Resources Assessment) for the Burrowing Owl, Criteria Area Species, and Narrow Endemic Plan Species was required by the Multiple Species Habitat Conservation Plan (MSHCP) for the purpose of allowing development of an industrial building and associated improvements; and WHEREAS, the City of Lake Elsinore evaluated the consistency of the project with the MSHCP; and WHEREAS, public notice of said application has been given, and the Planning Commission has considered evidence presented by the Community Development Department and other interested parties at a public hearing held with respect to this item on December 20, 2005; and WHEREAS, the Planning Commission of the City of Lake Elsinore has been delegated with the responsibility of making recommendation to the City Council adopting the Findings of Consistency with the MSHCP. NOW THEREFORE, the City Council of the City of Lake Elsinore DOES HEREBY RESOLVE as follows: The General Biological Resources Assessment prepared by Natural Resources Assessment, Inc, has been submitted and reviewed in accordance with requirements of the Multiple Species Habitat Conservation Plan (MSHCP). The report is complete and adequate in it's evaluation of all environmental effects of the project known as Industrial Design Review No. 2005 -01 and will not preclude the implementation of the MSHCP goals, based on the following finding: FINDINGS — Multiple Species Habitat Conservation Plan 1. The proposed project is consistent with the Multiple Species Habitat Conservation Plan According to the Multiple Species Habitat Conservation Plan (MSHCP), "Within identified Narrow Endemic Plant Species survey areas (NEPSSA), site - specific focused surveys for Narrow Endemic Plant Species shall be required for all public and private projects when appropriate habitat is present. " Since the General Biological Resources Assessment dated September 21, 2005 found no appropriate habitat for Narrow Endemic Plant Species future focus studies are not required. AGENDA ITEM NO. ...4.6LrQ_ PAGE OF 5 ''1 CITY COUNCIL RESOLUTION MSHCP CONSISTENCY Page 2 of 2 PURSUANT TO THE ABOVE FINDING, IT IS RESOLVED by the City Council of the City of Lake Elsinore, California, that the City of Lake Elsinore Multi- Species Habitat Conservation Plan Findings of Consistency hereof be adopted. PASSED, APPROVED AND ADOPTED this 10'h day of January, 2006 by the following vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: ABSTAIN: COUNCILMEMBERS: Robert Magee, Mayor City of Lake Elsinore ATTEST: Frederick Ray, City Clerk APPROVED AS TO FORM: Barbara Zeid Leibold, City Attorney City of Lake Elsinore (SEAL) UA1miller \ALL FILES \Resolutions- Ordinances \2005 \CC RESO 2006 -_ MSHCP 12005-01 7 10- 06.doc AGENDA ITEM NO. PACE..–L— OF � Z RESOLUTION NO. 2006- A RESOLUTION OF THE CITY COUNCIL OF THE CITY � OF LAKE ELSINORE, CALIFORNIA, APPROVING INDUSTRIAL DESIGN REVIEW NO. 2005 -01, TO BE LOCATED ON PASADENA STREET WHEREAS, an application has been filed with the City of Lake Elsinore by Kirk Moeller, of McArdle Associates Architects, to request approval of Industrial Design Review No. 2005 -01 for an industrial complex consisting of four (4) buildings and associated improvements; and WHEREAS, a General Biological Resources Assessment dated September 21, 2005 was provided meeting the requirements of the Multiple Species Habitat Conservation Plan (MSHCP); and WHEREAS, the Planning Commission of the City of Lake Elsinore at a regular meeting held on December 20, 2005 made its report upon the desirability of the proposed project and made its recommendation in favor of said Industrial Design Review No. 2005 -01 by approving Planning Commission Resolution No. 2005 -160 recommending to the City Council approval of Industrial Design Review No. 2005 -01; and WHEREAS, the City Council has considered evidence presented by the Community Development Department and other interested parties on January 10, 2006. NOW THEREFORE, the City Council of the City of Lake Elsinore DOES HEREBY N4001 RESOLVE as follows: SECTION 1. The City Council has considered the Industrial Design Review No. 2005- 01. and finds and determines that the project is consistent with all the requirements, procedures, policies, guidelines and provisions of the City of Lake Elsinore's General PIan and the Lake Elsinore Municipal Code based on the following findings: FINDINGS- Industrial Design Review No. 2005 -01 1. The project, as approved, will comply with the goals and objectives of the General Plan and the Zoning District in which the project is located. The proposed Industrial Design Review located at APN 377 - 130 -030 complies with the goals and objectives of the General Plan, in that the approval of these industrial business park will assist in achieving in development of a well- balanced and functional mix of residential, commercial, industrial, open space, recreational and institutional land uses as well as encouraging industrial land uses to diversify Lake Elsinore's economic base. 2. The project complies with the design directives contained in Section 17.82.060 and all other applicable provisions of the Municipal Code. The proposed Industrial Design Review located at APN 377 - 130 -030 is appropriate to the r../ site and surrounding developments in that the proposed industrial business park has been designed in consideration of the size and shape of the property, thereby creating interest and AGENDA ITEM NO. - PAGE- OF ,^ CITY COUNCIL RESOLUTION INDUSTRIAL DESIGN REVIEW Page 2 of 3 varying vistas as a person moves along the street. Further the project as proposed will complement the quality of existing development and will create a visually pleasing, non - detractive relationship between the proposed and existing projects in that the architectural design, color and materials and site design proposed evidence a concern for quality and originality. 3. Subject to the attached Conditions of Approval, the proposed project is not anticipated to result in any significant adverse environmental impacts. Pursuant to the California Environmental Quality Act (CEQA), the proposed Industrial Design Review located at APN 377 - 130 -030, as been reviewed and conditioned by all applicable City Divisions and Departments and Agencies, and will not have a significant effect on the environmental pursuant to General Biological Resources Assessment dated September 21, 2005. 4. Conditions and safeguards pursuant to Section 17.82.070, of the Zoning Code, including guarantees and evidence of compliance with conditions, have been incorporated into the approval of the subject project to insure development of the property in accordance with the objectives Chapter 17.82. Pursuant to Section 17.74.050 (Action of the Planning Commission) of the Lake Elsinore Municipal Code (LEMC), the proposed Industrial Design Review located at APN 377 -130- 030 has been scheduled for consideration and approval of the Planning Commission. PURSUANT TO THE ABOVE FINDINGS, IT IS RESOLVED by the City Council of the City of Lake Elsinore, California, that Industrial Design Review No. 2005 -01 hereof be approved. PASSED, APPROVED AND ADOPTED this I OTH day of January, 2006 by the following vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: ABSTAIN: COUNCILMEMBERS: Robert Magee, Mayor City of Lake Elsinore AGENDA ITEM NO. i4(1 PAGE OF 5 Z CITY COUNCIL RESOLUTION INDUSTRIAL DESIGN REVIEW Page 3 of 3 ATTEST: Frederick Ray, City Clerk APPROVED AS TO FORM: Barbara Zeid Leibold, City Attorney City of Lake Elsinore (SEAL) UAlmiller \ALL FILES\ Resolutions - Ordinances \2005 \CC RESO 2006- —12005-01 1- 10- 06.doc AGENDA ITEM NO..: --- PAGE OF 5 2 CONDITIONS OF APPROVAL FOR DESIGN REVIEW INDUSTRIAL PROTECT NO. 12005-01 i"- LOCATED ON PASADENA STREET (Note: Fees listed in the Conditions of Approval are the best estimates available at the time of approval. The exact fee amounts will be reviewed at the time of building permit issuance and may be raised.) GENERAL CONDITION The applicant shall defend (with counsel acceptable to the City), indemnify, and hold harmless the City, its Official, Officers, Employees, and Agents from any claim, action, or proceeding against the City, its Official, Officers, Employees, or Agents to attach, set aside, void, or annul an approval of the City, its advisory agencies, appeal boards, or legislative body concerning the, Industrial Project which action is bought within the time period provided for in California Government Code Sections 65009 and /or 66499.37, and Public Resources Code Section 21167. The City will promptly notify the Applicant of any such claim, action, or proceeding against the City and will cooperate fully with the defense. If the City fails to promptly notify the Applicant of any such claim, or proceeding, the Applicant shall not, thereafter, be responsible to defend, indemnify, or hold harmless the City. PLANNING DIVISION 2. Design Review approval for Industrial Project No. I 2005 -01 will lapse and be void unless building permits are issued within one (1) year of City Council approval. 3. Conditions of Approval shall be reproduced on page one of building plans submitted to the Building Division for Plan Check. All Conditions of Approval shall be met prior to the issuance of a Certificate of Occupancy and release of utilities. 4. All site improvements approved with this request shall be constructed as indicated on the approved site plan and elevations. Revisions to approved site plans or building elevations shall be subject to the review of the Community Development Director. All plans submitted for Building Division Plan Check shall conform to the submitted plans as modified by Conditions of Approval, or the Planning Commission /City Council through subsequent action. 5. Structures shall be placed on -site as depicted on the site plan and /or as modified by the Community Development Director or designee. 6. Any revisions to the interior floor plans that could cause the requirement for additional parking shall be subject to the review and approval of the Community Development Director or designee. Planning Commission :AJ pPMN J Dcccmbcr 20, 2005 Page l of 8 AGENDA ITEM NO. PAGE OF. CONDITIONS OF APPROVAL FOR DESIGN REVIEW INDUSTRIAL PROTECT NO 12005-01 LOCATED ON PASADENA STREET 7. All roof mounted or ground support air conditioning units or other mechanical equipment incidental to development shall be architecturally screened or shielded by landscaping so that they are not visible from neighboring property or public streets. Any material covering the roof equipment shall match the primary wall color. 8, All exterior on -site lighting shall be shielded and directed on -site so as not to create glare onto neighboring property and streets or allow illumination above the horizontal plane of the fixture. All light fixtures shall match the architectural style of the building. 9. All loading zones shall be clearly marked with yellow striping and shall comply with the requirements of the LEMC. 10. Applicant shall meet ADA (Americans with Disabilities Act) requirements. 11. The applicant shall construct a six foot (6') decorative masonry wall with pilasters along the northwestern boundary and the open portions of the southeastern boundary of the project. A six foot (6) tubular steel fence shall be constructed along the southwestern boundary. 12. All storage areas shall be enclosed with a six foot (6') masonry wall and six foot (6') opaque gates. If precision block is used, the block shall be painted a color to match the associated building per the review and approval of the Community Development Director or designee. _40/ 13. Trash enclosures shall be constructed per City standards as approved by the Community Development Director. A five foot (5� landscaped planter is required on each side of the trash enclosure. 14. No exterior roof ladders shall be permitted. 15. Applicant shall use roofing materials with Class "A" fire rating. 16. All exterior downspouts shall be painted to match with building exterior color. 17. The Planning Division shall approve the location of any construction trailers utilized during construction. All construction trailers shall require a $1,000.00 cash bond, submit a site plan and processed through the Planning Division. 18. Materials and colors depicted on the plans and materials board shall be used unless modified by the applicant and approved by the Community Development Director or designee. 19. On -site surface drainage shall not cross sidewalks. 20. Parking stalls shall be double- striped with four -inch (4 ") lines two feet (2') apart. Page 2 of 8 Planning Commission Approved December 20, 2005 AGENDA ITEM NO. PAGE OF � Z CONDITIONS OF APPROVAL FOR DESIGN REVIEW 10, INDUSTRIAL PROJECT NO. 1 2005 -01 LOCATED ON PASADENA STREET /"` 21. All exposed slopes in excess of three feet (3') in height shall have a permanent irrigation system and erosion control vegetation installed, approved by the Landscape Architectural Consultant and Planning Division. of the first b di nb r^ Deleted at Planning Commission December 20, 2005 22. The applicant shall submit a Sign Program for the approval of the Planning Commission and record a Notice of Completion prior to the issuance of therst building permit. Prior to the issuance of a Certificate of Occupancy, the Planning Commission shall approve the Sign Program. Added at Planning Commission December 20, 2005 23. All drive aisles and Ioading areas shall be kept free and clear of any materials /merchandise so as not to obstruct on -site circulation and deliveries. 24. Provide a 12 -inch concrete paver along the side of parking stalls that are adjacent to planters (paver to include curb width). PRIOR TO BUILDING /GRADING PERMITS 25. Prior to issuance of any grading permit or building permits, the applicant shall sign and complete an "Acknowledgement of Conditions" form and shall return the executed original to the Planning Division for inclusion in the case records. 26. Three (3) sets of the Final Landscaping/ Irrigation Detail Plan shall be submitted, reviewed and approved by the City's Landscape Architect Consultant and the Community Development Director or designee, prior to issuance of building permit. A Landscape Plan Check & Inspection Fee will be charged prior to final landscape approval based on the Consultant's fee plus forty percent (40 %) City fee. a) All planting areas shall have permanent and automatic sprinkler system with 100% plant and grass coverage using a combination of drip and conventional irrigation methods. b) Applicant shall plant street trees, selected from the City's Street Tree List, a maximum of thirty feet (30) apart and at least twenty- four -inch (24 ") box in size. c) All planting areas shall be separated from paved areas with a six -inch (6 ") high and six -inch (6 ") wide concrete curb. Planning Commission :Appv c.l Dcccmbec 20, 2005 Page 3 of 8 AGENDA ITEM NO. Lq --- PAGE— OF 5 1 CONDITIONS OF APPROVAL FOR DESIGN REVIEW INDUSTRIAL PROJECT NO 12005-01 LOCATED ON PASADENA STREET d) Planting within fifteen feet (15) of ingress /egress points shall be no higher than thirty -six inches (36 "). e) Landscape planters shall be planted with an appropriate parking lot shade tree to provide for 50% parking lot shading in fifteen (15) years. f) Any transformers and mechanical or electrical equipment shall be indicated on landscape plan and screened as part of the landscaping plan. g) The landscape plan shall provide for ground cover, shrubs, and trees and meet all requirements of the City's adopted Landscape Guidelines. Special attention to the use of Xeriscape or drought resistant plantings with combination drip irrigation system to be used to prevent excessive watering. h) All landscape improvements shall be bonded 100% for material and labor for two years from installation sign -off by the City. Release of the landscaping bond shall be requested by the applicant at the end of the required two years with approval /acceptance by the Landscape Consultant and Community Development Director or Designee. i) All landscaping and irrigation shall be installed within affected portion of any phase at the time a Certificate of Occupancy is requested for any building. All planting areas shall include plantings in the Xeriscape concept, drought tolerant grasses and plants. j) Final landscape plan must be consistent with approved site plan. k) Final landscape plans to include planting and irrigation details. 27. A minimum of thirty (30) days prior to any ground disturbance the applicant shall conduct a follow -up Biological Survey for the burrowing owl. Results of that survey shall be presented to the Planning Division for review and approval prior to obtaining a grading permit. 28. Applicant shall comply with the requirements of the Elsinore Valley Municipal Water District. Proof shall be presented to the Chief Building Official prior to issuance of building permits and final approval. 29. Prior to issuance of building permits, applicant shall provide assurance that all required fees to the Lake Elsinore Unified School District have been paid. Page 4 of 8 Planning; Commission Approved December 20, 2005 AGENDA ITEM NC). .,...- PAGE 13 Gr CONDITIONS OF APPROVAL FOR DESIGN REVIEW INDUSTRIAL PROTECT NO. 12005-01 LOCATED ON PASADENA STREET 30. Prior to issuance of building permits, applicant shall provide assurance that all requirements of the Riverside County Fire Department have been met. 31. Prior to issuance of building permits, applicant shall pay park -in -lieu fee in effect at time of building permit issuance. 32. The applicant shall comply with Section 17.78, Noise Control of the Lake Elsinore Municipal Code. 33. The Multiple Species Habitat Conservation Fee (MSHCP) shall be due upon issuance of each building permit. ENGINEERING DIVISION General Conditions: 34. All Public Works requirements shall be complied with as a condition of development as specified in the Lake Elsinore Municipal Code (LEMC) prior to final map approval. �-� 35. Underground water rights shall be dedicated to the City pursuant to the provisions of Section 16.52.030 (LEMC) and be consistent with the City's agreement with the Elsinore Valley Municipal Water District. 36. Pay all Capital Improvement and Plan Check fees (LEMC 16.34, Resolution 85 -26), mitigation fees, area drainage fee, traffic impact fee (TIF), encroachment permit fees and inspection fees associated with the project and its development. 37. Submit a "Will Serve" letter to the City Engineering Division from the applicable water agency stating that water and sewer arrangements have been made for this project. Submit this letter prior to grading plan approval. 38. An Alquis- Priolo study shall be performed on the site to identify any hidden earthquake faults and /or liquefaction zones present on -site or a licensed geologist or a geotechnical engineer shall prepare a statement, stating there are no known earthquake faults or liquefaction zones present. Street Improvements: 39. All street improvements and street lighting along Pasadena Avenue shall be installed and functioning prior to certificate of occupancy. 1.011, Page 5 of 8 Planning Commission ApproWd D(xcrnC,cr 20, 2005 AGENDA ITEM NO. I -- PAGE..,1'4 OF 52- CONDITIONS OF APPROVAL FOR DESIGN REVIEW INDUSTRIAL PROJECT NO 12005-01 LOCATED ON PASADENA STREET 40. Construct all public works improvements on Pasadena per approved street plans (LEMC 12.04). Plans must be approved and signed by the City Engineer prior to grading plan approval (LEMC 16.34). 41. Street improvement plans and specifications shall be prepared by a California Registered Civil Engineer. Improvements shall be designed and constructed to Riverside County Road Department Standards, latest edition, and City Codes (LEMC 12.04 and 16.34). 42. All compaction reports, grade certifications, monument certifications (with tie notes delineated on 8 ' /a" x 11" Mylar) shall be submitted to the Engineering Division before final inspection of public works improvements will be scheduled and approved. 43. Provide final soils report showing compliance with recommendations. 44. The applicant shall install permanent survey monuments in compliance with the City's municipal code. 45. Applicant shall submit a traffic control plan showing all traffic control devices for the project and it shall be approved with the street plans. All traffic control devices shall be installed prior to final inspection of public improvements. This includes No Parking and Street Sweeping Signs. 46. All improvement plans .shall be digitized. At Certificate of Occupancy applicant shall submit tapes and /or disks which are compatible with City's ARC Info /GIS or developer to pay $300 per sheet for City digitizing. Grading: 47. Applicant shall obtain all necessary off -site easements for off -site grading or construction from the adjacent property owners prior to issuance of grading permit. 48. Apply and obtain a grading permit prior to building permit issuance. A grading plan signed and stamped by a California Registered Civil Engineer shall be required if the grading exceeds 50 cubic yards or the existing flow pattern is substantially modified as determined by the City Engineer. If the grading is less than 50 cubic yards and a grading plan is not required, a grading permit shall still be obtained so that a cursory drainage and flow pattern inspection can be conducted before grading begins. 49. All grading shall be done under the supervision of a geotechnical engineer and he shall certify all slopes steeper than 2 to 1 for stability and proper erosion control. Page 6 of 8 Planning (.OtnTn18S]On _ Jj Proved December 20, 200, AGENDA ITEM NO. .L. -.- PAGE _... S OF -7---- C�.J- Emn rldma CONDITIONS OF APPROVAL FOR DESIGN REVIEW INDUSTRIAL PROJECT NO. 1 2005 -01 LOCATED ON PASADENA STREET 50. Prior to commencement of grading operations, applicant to provide to the City with a map of all proposed haul routes to be used for movement of import /export material. Such routes shall be subject to the review and approval of the City Engineer. 51. Applicant to provide to the City a photographic baseline record of the condition of all proposed public City haul roads. In the event of damage to such roads, applicant shall pay full cost of restoring public roads to the baseline condition. A bond may be required to ensure payment of damages to the public right -of -way, subject to the approval of the City Engineer. 52. All waste material, debris, vegetation and other rubbish generated during cleaning, demolition, clear and grubbing or other phases of the construction must be disposed of at appropriate recycling centers. The applicant should contract with CR &R, Inc., for recycling and storage container services, but the applicant may use the services of another recycling vendor. Another recycling vendor, other than CR &R, Inc., cannot charge the applicant for bin rental or solid waste disposal. If the applicant is not using CR &R, Inc., for recycling services and the recycling material is either sold or donated to another vendor, the applicant shall supply proof of debris disposal at a recycling center, including verification of tonnage by certified weigh master tickets. Utilities: 53. Arrangements for relocation of utility company facilities (power poles, vaults, etc.) out of the roadway or alley shall be the responsibility of the property owner or his agent. 54. Provide fire protection facilities as required in writing by the Riverside County Fire Department. 55. Developer shall install blue reflective pavement markers in the street at all fire hydrant locations. Drainage: 56. A hydrology and hydraulic study and calculations for the proposed on site storm drainage system shall be submitted and approved prior to issuance of a grading permit. The storm drains and proposed catch basins shall be designed to an approved hydraulic grade line in the Lake Elsinore overflow /outlet channel. This channel has considerable standing water after rainfall. After recent rainfall, at the existing catch basin at the westerly end of Central Avenue standing water was observed in the catch basin to a height that left approximately 6 inches of the exposed soffit of the outlet pipe. As such, the developers engineer shall give special attention in selecting the hydraulic grade line for the overflow /outlet channel in preparation of the hydraulic design of the proposed inlet catch basins. 57. Meet all requirements of LEMC 15.68 regarding flood plain management. /^ Page 7 of 8 Planning Commission Approved December 21, 2005 AGENDA ITEM NO.. OF— PAGE.--- OF SZ CONDITIONS OF APPROVAL FOR DESIGN REVIEW INDUSTRIAL PROTECT NO 12005-01 LOCATED ON PASADENA STREET 58. The Riverside County Water Quality Management Plan requires this project to prepare a project specific Water Quality Management Plan (WQMP). As such the applicant will be required to prepare a WQMP install BMP's using the best available technology to mitigate any urban pollutants from entering the watershed. The plan shall identify "pollutants of concern" and "hydrologic conditions of concern ", and mitigate in accordance with the Riverside County Water Quality Management Plan. The project shall be design a water quality detention basin capable of releasing the post - development 2 -yr and 10 year, 24 hour peak flow rates, respectively, equal to the pre- development 2 year and 10 year 24 hour peak flow rates. The 100 -year storm shall pass without damage to the facility and the outlet velocities shall be controlled such that downstream erosion and habitat loss is minimized. Said plan shall be approved prior to the issuance of a grading or site development permit. 59. Applicant will be required to install BMP's using the best available technology to mitigate any urban pollutants from entering the watershed. Applicant shall provide first flush BMP's using the best available technology that will reduce stormwater pollutants from parking areas and driveways. This would include the use of a biofilter swale or other BMP techniques. Education guidelines and Best Management Practices (BMP) shall be provided to the property owner and /or tenant in the use of herbicides, pesticides, fertilizers as well as other environmental awareness education materials on good housekeeping practices that contribute to protection of stormwater quality and meet the goals of the BMP in Supplement "A" in the Riverside County NPDES Drainage Area Management Plan. 60. All drainage facilities in this site shall be constructed to Riverside County Flood Control District Standards. 61. Storm drain inlet facilities shall be appropriately stenciled to prevent illegal dumping in the drain system, the wording and stencil shall be approved by the City Engineer. 62. 10 -year storm runoff should be contained within the curb and the 100 -year storm runoff should be contained with the street right -of -way. When either of these criteria is exceeded, drainage facilities should be installed. 63. Applicant shall obtain approval from Santa Ana Regional Water Quality Control Board for their stormwater pollution prevention plan including approval of erosion control for the grading plan prior to issuance of grading permits. The applicant shall provide a SWPPP for post construction which describes BMP's that will be implemented for the development and including maintenance responsibilities. End of Conditions UA1miller \ALL FILES \Conditions of Approval -Org. & Revised \2005 \COFA 12005-01 MCArdle Asso. 12- 20- 05.doc Page 8 of 8 Planning; C:oinnn�sion .lpprovcd Dcccmber 20, 2005 AGENDA ITEM NO. PAGE. OF 5.�.._ L�J /"-- City of Lake Usin- Planning Di,iaian 130 S. Man Street take El—m G4 92530 (909) 674 -3124 (909) 471 -1419 fax DATE: TO: FROM: PREPARED BY: PROJECT TITLE: APPLICANT: PROJECT REQUEST I'E"NING COMMISSION STAFF REPORT December 20, 2005 Chairman and Members of the Planning Commission Rolfe Preisendanz, Community Development Director Linda M. Miller, Project Planner Industrial Design Review No. 12005-01 Kirk Moeller, McArdle Associates Architects, 5838 Edison Place, Suite 100, Carlsbad, California 92008 Review and approval of a Design Review for an industrial complex consisting of four (4) buildings and associated improvements pursuant to Chapter 17.82 (Design Review) and Chapter 17.56 (IVI -1, Limited Manufacturing District) of the Lake Elsinore Municipal Code (LEMC). PROJECT LOCATION The 4.1 acre project site is located within the City of Lake Elsinore's Limited Industrial District on Pasadena Street near the corner of Central Avenue (APN 377 -130 -030). Access will be taken from two driveways on Pasadena Street at opposite ends of the projects site. ENVIRONMENTAL SETTING' AGENDA ITEM Na. PAGE I $ OF S Z Existing Land Use Zoning General Plan Project Site Vacant M -1 (Limited Manufacturing) Limited Industrial Northeast Industrial M -1 (Limited Manufacturing) Limited Industrial Southeast Vacant M -1 (Limited Manufacturing) Limited Industrial Southwest Lake Elsinore Channel ----- - - - - -- ---- - - - - -- Northwest Industrial M -1 (Limited Manufacturing) Limited Industrial AGENDA ITEM Na. PAGE I $ OF S Z PLANNING COMMISSION STAFF REPORT DECEMBER 20, 2005 Page 2 of 6 PROJECT TITLE: INDUSTRIAL DESIGN REVIEW NO. 2005 -01, LOCATED AT PASADENA STREET NEAR CENTRAL AVENUE (APN 377 -130- 030) PROJECT DESCRIPTION Site Plan The applicant is proposing to develop an industrial complex that consists of four (4) tilt -up pre -cast concrete buildings on one (1) parcel. The total area of the parcel is 4.1 acres or 180,409 square feet. The total building area of all four (4) buildings is 50,576 square feet or twenty -eight percent (28 %) of the parcel which complies with the City of Lake Elsinore's General Plan that allows a maximum of thirty -five (35 %) floor area ratio (FAR) or building coverage. Each of the buildings will include office and warehouse areas. The details of each building are as follows: Bldg _A Bldg. B Bldg. C Bldg. D Area 11,892 s.f. 23,178 s.f. 4,303 s.f. 11,203 s.f. Office 3,070 s.£ 6,283 s.f. 1,301 s.f. 2,575 s.f. Warehouse 8,266 s.f. 15,424 s.f. 2,802 s.f. 7,737 s.f. Parking /Circulation The applicant has complied with Section 17.66.030.0 (Parking Requirements) of the LEMC. The details are shown as follows: The project also meets the minimum requirements of American Disabilities Act (ADA). No compact spaces are proposed meeting the directive of the Planning Commission. There are two (2) driveways provided for access. Both driveways are thirty feet (30') in width and are located off of AGENDA ITEM NO. PAGE 4) OF '�- Z 1*001 \fir Sq. Ft. Parking Ratio Parking Required Building A Office 3,070 1:250 12 Warehouse 8,266 1:500 17 Building B Office 6,283 1:250 25 Warehouse 15,424 1:500 31 Building C Office 1,301 1:250 5 Warehouse 2,802 1:500 6 Building D Office 21575 1:250 10 Warehouse 7,737 1:500 15 Total Required 121 Total Provided 121 (112 regular spaces + 9 handicap) The project also meets the minimum requirements of American Disabilities Act (ADA). No compact spaces are proposed meeting the directive of the Planning Commission. There are two (2) driveways provided for access. Both driveways are thirty feet (30') in width and are located off of AGENDA ITEM NO. PAGE 4) OF '�- Z 1*001 \fir PLANNING COMMISSION STAFF REPORT 1„� DECEMBER 20, 2005 Page 3 of 6 PROJECT TITLE: INDUSTRIAL DESIGN REVIEW NO. 2005 -01, LOCATED AT PASADENA STREET NEAR CENTRAL AVENUE (APN 377 -130- 030) Pasadena Street. All drive aisle are a minimum of twenty-eight feet (28� feet wide, accommodating oversized vehicles and meeting the requests of the County of Riverside Fire Department. The applicant has provided one (1) loading space for each building per the requirements of Section 17.66.050, Loading Space Requirements of the LEMC. Landscaping The minimum landscaping coverage requirement for industrial projects is eight percent (8 0/6) per Section 17.56.100.0 of the LEMC. The applicant has met this requirement by providing approximately seventeen percent (17 %) of landscaping within the project site. Further, Section 17.56.100 of the LEMC requires a minimum of 15 feet and an average of 20 feet of landscaped setback for industrial projects fronting the public right -of -way. The project complies with this requirement and shows a twenty foot (20') landscaped setback along Pasadena Street. Landscaping will include drought tolerant plants with low maintenance ground cover similar to landscaping chosen for the neighboring project. Architectural Design The architectural design of the proposed buildings is a typical industrial contemporary style. Features include varying roof lines with added cornices, recessed entry and entry windows with a metal canopy roof and stone tile veneer defining this entry area, vertical and horizontal reveals, and a full glass curtain wall. Each unit will have a three foot (3) by fourteen foot (14) two inch (2 ") recessed deep panel for signage. Colors and Materials The applicant has provided two (2) colors, stone tile veneer, and tinted glass, and two (2) textures (tilt -up concrete, metal roof) which meets this requirement. The details of the colors and materials proposed for the building are: Location Material Color Elevations Tilt -up concrete Base Color Sherwin Williams SW6108 "Latte" Trim Sherwin Williams SW 6106 "Kilm Beige" Trellis Reynobond- Anodic Clear Windows Glass Silver Mullions /Doors Natural Aluminum AGENDA ITEM NO. L— PAGE ?0 OF PLANNING COMMISSION STAFF REPORT DECEMBER 20, 2005 Page 4 of 6 `..ri PROJECT TITLE: INDUSTRIAL DESIGN REVIEW NO. 2005 -01, LOCATED AT PASADENA STREET NEAR CENTRAL AVENUE (APN 377 -130- 030) ENVIRONMENTAL DETERMINATION The project is exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15332, In -Fill Development Projects. Staff is also required to make a determination as to whether the project is consistent with the Multi Species Habitat Conservation Plan (MSHCP). Although Staff determined that the project was not located within a criteria cell of the MSHCP, the project is located within the Species Survey Area, requiring that a Habitat Assessment Report be completed and at a minimum address whether the site holds potential habitat for Burrowing Owl and Narrow Endemic Plant Species. The applicant has provided a General Biological Resources Assessment dated September 21, 2005 submitted by Natural Resources Assessment, Inc. The report stated that no "Burrowing Owls" or borrows were found on the site, but the report recommended that since the species could move onto the site, a follow up survey be conducted prior to any ground disturbance. The project has been conditioned for a follow up survey. The report found that there was no jurisdictional drainage or wetlands on site; therefore, there is no need for any further Federal or State permits. No nesting habitat of raptor or migratory birds was found. Wildlife corridors were not present due to the construction of Pasadena Street and other industrial developments within the area. ANALYSIS The applicant has substantially met the requirements of Chapter 17.56 (M -1, Limited Manufacturing District) of the LEMC. STAFF'S RECOMMENDATION Staff recommends that Planning Commission adopt Resolution No. 2005- , recommending City Council adopting of findings of consistency with the MSHCP, and adopt Resolution No. 2005 - _recommending City Council approval for Industrial Design Review No. 12005-01 based on the following Findings, Exhibits and subject to the attached Conditions of Approval. FINDINGS - Multiple Species Habitat Conservation Plan The proposed project is consistent with the Protection of Narrow Endemic Plant Species Guidelines. According to the Multiple Species Habitat Conservation Plan (MSHCP), 'Within identified Narrow Endemic Plant Species survey areas (NEPSSA), site - .specific focused surveys for Narrow Endemic Plant Species shall be required for all public and private projects when appropriate habitat is present. " Since the General Biological Resources Assessment dated September 21, 2005 the found no appropriate habitat for Narrow Endemic Plant Species future focus studies are not required. 54400 AGENDA ITEM 140. L PAGE .= OF s_ __, PLANNING COMMISSION STAFF REPORT DECEMBER 20, 2005 Page 5 of 6 PROJECT TITLE: INDUSTRIAL DESIGN REVIEW NO. 2005 -01, LOCATED AT PASADENA STREET NEAR CENTRAL AVENUE (APN 377 -130- 030) Industrial Design Review No. 2005 -01 1. The project, as approved, will comply with the goals and objectives of the General Plan and the Zoning District in which the project is located. The proposed Industrial Design Review located at APN 377 -130 -030 complies with the goals and objectives of the General Plan, in that the approval of these industrial business park will assist in achieving in development of a well - balanced and functional mix of residential, commercial, industrial, open space, recreational and institutional land uses as well as encouraging industrial land uses to diversify Lake Elsinore's economic base. 2. The project complies with the design directives contained in Section 17.82.060 and all other applicable provisions of the Municipal-Code. The proposed Industrial Design Review located atAPN 377 - 130 -030 is appropriate to the site and surrounding developments in that the proposed industrial business park has been designed in consideration of the side and shape of the proper*, thereby creating interest and varying vistas as a person moves along the street. Further the project as proposed will complement the qualiy of existing development and will create a visualy pleasing, non - detractive relationship between the proposed and existing projects in that the architectural design, color and materials and site design proposed evidence a concern for quality and originaliy. 3. Subject to the attached Conditions of Approval, the proposed project is not anticipated to result in any significant adverse environmental impacts. Pursuant to the California EnvironmentalQualityAct (CEQA), the proposed Industrial Design Review located at APN 377 -130 -030, as been reviewed and conditioned by all applicable Ci y Divisions and Departments and Agencies, and will not have a significant ffect on the environmental pursuant to General Biological Resources Assessment dated September 21, 2005. 4. Conditions and safeguards pursuant to Section 17.82.070, of the Zoning Code, including guarantees and evidence of compliance with conditions, have been incorporated into the approval of the subject project to insure development of the property in accordance with the objectives Chapter 17.82. Pursuant to Section 17.74.050 (Action of the Planning Commission) of the Lake Elsinore Municipal Code (LEMC), the proposed Industrial Design Review located at APN 377 -130 -030 has been scheduled for consideration and approval of the Planning Commission. AGENDA ITEM NO. PAGE 2_ OF PLANNING COMMISSION STAFF REPORT DECEMBER 20, 2005 Page 6 of 6 1*../ PROJECT TITLE: INDUSTRIAL DESIGN REVIEW NO. 2005 -01, LOCATED AT PASADENA STREET NEAR CENTRAL AVENUE (APN 377 -130- 030) Prepared by: Linda M. Miller, AICP, Project Planner Approved by: Rolfe Preisendanz, Community Development Director ATTACHMENTS: Reductions Exhibit `A' Vicinity Map Exhibit `B' Site Plan, Landscape Plan, Conceptual Grading Plan, Floor Plans and Elevations Document Exhibit `C' General Biological Resources Assessment dated September 21, 2005 Full Sized Exhibit `D' Site Plan, Landscape Plan, Conceptual Grading Plan, Floor Plans and Elevations Exhibit `E' Colored Elevations (Presented at Hearing) Exhibit `F' Colored Landscape Plan (Presented at Hearing) Exhibit `G' Color and Materials (Presented at Hearing) AGENDA ITEM NO. .r. PAGE._. Or- VICINITY MAP INDUSTRIAL PROJECT NO. 2005 -01 PLANNING COMMISSION DECEMBER .2005 AGENDA ITEM NO. L . PAGE.? ... OF 5 RESOLUTION NO. 2005 -159 A RESOLUTION OF THE PLANNING COMMISSION OF � THE CITY OF LAKE ELSINORE, CALIFORNIA, RECOMMENDING CITY COUNCIL ADOPTION OF FINDINGS OF CONSISTENCY WITH SECTION 6.0 OF THE MULTIPLE SPECIES HABITAT CONSERVATION PLAN (MSHCP) - FOR THE PROJCT KNOWN AS INDUSTRIAL DESIGN REVIEW NO. 2005 -01 TO BE LOCATED ON PASADENA STREET WHEREAS, a site specific focused survey (General Biological Resources Assessment) for the Burrowing Owl, Criteria Area Species, and Narrow Endemic Plan Species was required by the Multiple Species Habitat Conservation Plan (MSHCP) for the purpose of allowing development of an industrial building and associated improvements; and WHEREAS, the City of Lake Elsinore evaluated the consistency of the project with the MSHCP; and WHEREAS, public notice of said application has been given, and the Planning Commission has considered evidence presented by the Community Development Department and other interested parties at a public hearing held with respect to this item on December 20, 2005; and WHEREAS, the Planning Commission of the City of Lake Elsinore has been delegated with the responsibility of making recommendation to the City Council adopting the Findings of V Consistency with the MSHCP; and NOW THEREFORE, the Planning Commission of the City of Lake Elsinore DOES HEREBY RESOLVE as follows: The General Biological Resources Assessment prepared by Natural Resources Assessment, Inc, has been submitted and reviewed in accordance with requirements of the Multiple Species Habitat Conservation Plan (MSHCP). The report is complete and adequate in it's evaluation of all environmental effects of the project known as Industrial Design Review No. 2005 -01 and will not preclude the implementation of the MSHCP goals, based on the following finding: FINDINGS — Multiple Species Habitat Conservation Plan 1. The proposed project is consistent with the Multiple Species Habitat Conservation Plan According to the Multiple Species Habitat Conservation Plan (MSHCP), `Within identified Narrow Endemic Plant Species survey areas (NEPSSA), site - specific focused surveys for Narrow Endemic Plant S pedes shall be required for all public and private projects when appropriate habitat is present. " Since the General Biological Resources Assessment dated September 21, 2005 the found no appropriate habitat for Narrow Endemic Plant Species future focus studies are not required. AGENDA ITEM NO. _ u- ---- PAGE 2 5 OF --5 Z-- -r r^ RESOLUTION No. 2005- 159 December 20, 2005 Page 2of2 NOW, THEREFORE, based on the above Finding, the Planning Commission of the City of Lake Elsinore DOES HEREBY RECOMMEND that the City Council of the City of Lake Elsinore adopt the Finding of Consistency with the Multiple Species Habitat Conservation Plan. Michael O'Neal, Chairman Lake Elsinore Planning Commission I hereby certify that the preceding resolution was adopted by the Planning Commission at a meeting thereof conducted on December 20, 2005 by the following vote: AYES: Commissioners: O'NEAL, LARIMER, GONZALES, LAPERE NOES: Commissioners: ABSENT: Commissioners: ABSTAIN: Commissioners: ATTEST: Rolfe Preisendanz, Secretary to the Planning Commission '#-` U: \lmiller \ALL FILES \Resolutions- Ordinances \2005 \RESO 2005- MSHCP 12005-01 12- 20- 05.doc AGENDA ITEM NO. L1�. -� PAGE i_ OF_.._-Z..._ RESOLUTION NO. 2005-160 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF LAKE ELSINORE, CALIFORNIA, RECOMMENDING CITY COUNCIL APPROVAL OF INDUSTRIAL DESIGN REVIEW NO. 2005 -01, TO BE LOCATED ON PASADENA STREET WHEREAS, an application has been filed with the City of Lake Elsinore by Kirk Moeller, of McArdle Associates Architects, to request approval of Industrial Design Review No. 2005 -01 for an industrial complex consisting of four (4) buildings and associated improvements; and WHEREAS, public notice of said application has been given, and the Planning Commission has considered evidence presented by the Community Development Department and other interested parties at a public hearing held with respect to this item on December 20, 2005; and WHEREAS, the Planning Commission of the City of Lake Elsinore has been delegated with the responsibility of recommending approval of industrial projects to City Council. NOW THEREFORE, the Planning Commission of the City of Lake Elsinore DOES HEREBY RESOLVE as follows: SECTION 1. The Planning Commission has considered the proposed design for the industrial building and associated improvements. The Planning Commission fmds and determines this project is consistent with the General Plan and the Lake Elsinore Municipal Code. The project has been determined to be exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15332, In -Fill Development Projects. A General Biological Resources Assessment dated September 21, 2005 has been submitted pursuant to the requirements of the Multi Species Habitat Conservation Plan (MSHCP); SECTION 2. That in accordance with Chapter 17.82 (Design Review) of the Lake Elsinore Municipal Code the findings for the approval of the Design Review of Industrial Project No. 2005- 01 have been made as follows: FINDINGS - Industrial Design Review No. 12005-01 1. The project, as approved, will comply with the goals and objectives of the General Plan and the Zoning District in which the project is located. The proposed Industrial Design Review located at APN 377 -130 -030 complies with the goals and objectives of the General Plan, in that the approval of these industrial business park will assist in achieving in development of a well - balanced and functional mix of residential, commercial, industrial, open space, recreational and institutional land uses as well as encouraging industrial land uses to diversifi, Lake Elsinore's economic base. 2. The project complies with the, design directives contained in Section 17.82.060 and all other applicable provisions of the Municipal Code. AGENDA ITEM NO. _LL__ P.AGE,.�— OF S RESOLUTION NO. 2005 -160 DECEMBER 20, 2005 Page 2 of 2 Theproposed Industrial Design Review located atAPN 377 - 130 -030 is appropriate to the site and surrounding developments in that the proposed industrial business park has been designed in consideration of the side and shape of the property, thereby creating interest and varying vistas as a person moves along the street. Further the project as proposed will complement the quality of existing development and will create a visually pleasing, non - detractive relationship between the proposed and existing pr jects in that the architectural design, color and materials and site design proposed evidence a concern for quality and originality. 3. Subject to the attached Conditions of Approval, the proposed project is not anticipated to result in any significant adverse environmental impacts. Pursuant to the California EnvironmentalQuality Act (CEQA), the proposed Industrial Design Review located atAPN 377 -130 -030, as been reviewed and conditioned by all applicable City Divisions and Departments and Agencies, and will not have a significant ffect on the environmental pursuant to General Biological Resources Assessment dated September 21, 2005. 4. Conditions and safeguards pursuant to Section 17.82.070, of the Zoning Code, including guarantees and evidence of compliance with conditions, have been incorporated into the approval of the subject project to insure development of the property in accordance with the objectives Chapter 17.82. Pursuant to Section 17.74.050 (Action of the Planning Commission) of the Lake Elsinore Municipal Code (LEMC), the proposed Industrial Design Review located at APN 377 -130 -030 has been scheduled for consideration and approval of the Planning Commission. NOW, THEREFORE, based on the above Findings, the Planning Commission of the City of Lake Elsinore DOES HEREBY RECOMMEND TO THE CITY COUNCIL APPROVAL of Industrial Design Review No. 2005 -01. Michael O'Neal, Chairman Lake Elsinore Planning Commission I hereby certify that the preceding resolution was adopted by the Planning Commission at a meeting thereof conducted on December 20, 2005 by the following vote: AYES: Commissioners: O'NEAL, LARIMER, GONZALES, LAPERE NOES: Commissioners: ABSENT: Commissioners: ABSTAIN: Commissioners: 10-1 ATTEST: Rolfe Preisendanz, Secretary to the Planning Commission RESO 2005- —12005-01 12- 20- 05.doc AGENDA ITEM NO. PAGE �F S—Z- -- CONDITIONS OF APPROVAL FOR DESIGN REVIEW INDUSTRIAL PROTECT NO 12005-01 LOCATED ON PASADENA STREET (Note: Fees lifted in the Conditions of Approval are the best estimates available at the time of approval. The exact fee amounts will be reviewed at the time of building permit issuance and may be raised.) GENERAL CONDITION. The applicant shall defend (with counsel acceptable to the City), indemnify, and hold harmless the City, its Official, Officers, Employees, and Agents from any claim, action, or proceeding against the City, its Official, Officers, Employees, or Agents to attach, set aside, void, or annul an. approval of the City, its advisory agencies, appeal boards, or legislative body concerning the; Industrial Project which action is bought within the time period provided for in California Government Code Sections 65009 and /or 66499.37, and Public Resources Code Section 21167. The City will promptly notify the Applicant of any such claim, action, or proceeding against the City and will cooperate fully with the defense. If the City fails to promptly notify the Applicant of any such claim, or proceeding, the Applicant shall not, thereafter, be responsible to defend, indemnify, or hold harmless the City. PLANNING DIVISION 2. Design Review approval for Industrial Project No. I 2005 -01 will lapse and be void unless building permits are issued within one (1) year of City Council approval. .. f 3. Conditions of Approval shall be reproduced on page one of building plans submitted to the Building Division for Plan Check. All Conditions of Approval shall be met prior to the issuance of a Certificate of Occupancy and release of utilities. 4. All site improvements approved with this request shall be constructed as indicated on the approved site plan and elevations. Revisions to approved site plans or building elevations shall be subject to the review of the Community Development Director. All plans submitted for Building Division Plan Check shall conform to the submitted plans as modified by Conditions of Approval, or the Planning Commission/ City Council through subsequent action. 5. Structures shall be placed on -site as depicted on the site plan and /or as modified by the Community Development Director or designee. 6. Any revisions to the interior floor plans that could cause the requirement for additional parking shall be subject to the review and approval of the Community Development Director or designee. Page i of 8 AGENDA ITEM NO. uaw- PAGE OF r-- CONDITIONS OF APPROVAL FOR DESIGN REVIEW INDUSTRIAL PROJECT NO. 1 2005 -01 LOCATED ON PASADENA STREET they are not visible from neighboring property or public streets. Any material covering the roof equipment shall match the primary wall color. 8. All exterior on -site lighting shall be shielded and directed on -site so as not to create glare onto neighboring property and streets or allow illumination above the horizontal plane of the fixture. All light fixtures shall match the architectural style of the building. 9. All loading zones shall be clearly marked with yellow striping and shall comply with the requirements of the LEMC. 10. Applicant shall meet ADA (Americans with Disabilities Act) requirements. 11. The applicant shall construct a six foot (6') decorative masonry wall with pilasters along the northwestern boundary and the open portions of the southeastern boundary of the project. A six foot (6� tubular steel fence shall be constructed along the southwestern boundary. 12. All storage areas shall be enclosed with a six foot (6) masonry wall and six foot (6') opaque gates. If precision block is used, the block shall be painted a color to match the associated building per the review and approval of the Community Development Director or designee. 13. Trash enclosures shall be constructed per City standards as approved by the Community Development Director. A five foot (5') landscaped planter is required on each side of the trash enclosure. 14. No exterior roof ladders shall be permitted. 15. Applicant shall use roofing materials with Class "A" fire rating. 16. All exterior downspouts shall be painted to match with building exterior color. 17. The Planning Division shall approve the location of any construction trailers utilized during construction. All construction trailers shall require a $1,000.00 cash bond, submit a site plan and processed through the Planning Division. 18. Materials and colors depicted on the plans and materials board shall be used unless modified by the applicant and approved by the Community Development Director or designee. 19. On -site surface drainage shall not cross sidewalks. 20. Parking stalls shall be double - striped with four -inch (4 ") lines two feet (2) apart. Page 2 of 8 Q AGENDA ITEM NO. A PA ,C'E 3.0 OF CONDITIONS OF APPROVAL FOR DESIGN REVIEW INDUSTRIAL PROJECT NO 12005-01 LOCATED ON PASADENA STREET 21. All exposed slopes in excess of three feet (3) in height shall have a permanent irrigation system and erosion control vegetation installed, approved by the Landscape Architectural Consultant and Planning Division. 22. The applicant shall submit a Sign Program for the approval of the Planning Commission prior to the issuance of the first building permit. 23. All drive aisles and loading areas shall be kept free and clear of any materials /merchandise so as not to obstruct on -site circulation and deliveries. 24. Provide a 12 -inch concrete paver along the side of parking stalls that are adjacent to planters (paver to include curb width). PRIOR TO BUILDING /GRADING PERMITS 25. Prior to issuance of any grading permit or building permits, the applicant shall sign and complete an "Acknowledgement of Conditions" form and shall return the executed original to the Planning Division for inclusion in the case records. 26. Three (3) sets of the Final Landscaping/ Irrigation Detail Plan shall be submitted, reviewed and approved by the City's Landscape Architect Consultant and the Community Development Director or designee, prior to issuance of building permit. A Landscape Plan. Check & Inspection Fee will be charged prior to final landscape approval based on the Consultant's fee plus forty percent (40 %) City fee. a) All planting areas shall have permanent and automatic sprinkler system with 100% plant and grass coverage using a combination of drip and conventional irrigation methods. b) Applicant shall plant street trees, selected from the City's Street Tree List, a maximum of thirty feet (30) apart and at least twenty- four -inch (24 ") box in size. C) All planting areas shall be separated from paved areas with a six -inch (6 ") high and six -inch (6 ") wide concrete curb. d) Planting within fifteen feet (15) of ingress /egress points shall be no higher than thirty -six inches (36 "). e) Landscape planters shall be planted with an appropriate parking lot shade tree to provide for 50% parking lot shading in fifteen (15) years. f) Any transformers and mechanical or electrical equipment shall be indicated on landscape plan and screened as part of the landscaping plan. Page 3 of 8 AGENDA ITEM NO. PAGE— OF 5 2- CONDITIONS OF APPROVAL FOR DESIGN REVIEW INDUSTRIAL PROTECT NO. 12005 -01 � LOCATED ON PASADENA STREET g) The landscape plan shall provide for ground cover, shrubs, and trees and meet all requirements of the City's adopted Landscape Guidelines. Special attention to the use of Xeriscape or drought resistant plantings with combination drip irrigation system to be used to prevent excessive watering. h) All landscape improvements shall be bonded 100% for material and labor for two years from installation sign -off by the City. Release of the landscaping bond shall be requested by the applicant at the end of the required two years with approval /acceptance by the Landscape Consultant and Community Development Director or Designee. i) All landscaping and irrigation shall be installed within affected portion of any phase at the time a Certificate of Occupancy is requested for any building. All planting areas shall include plantings in the Xeriscape concept, drought tolerant grasses and plants. j) Final landscape plan must be consistent with approved site plan. k) Final landscape plans to include planting and irrigation details. 27. A minimum of thirty (30) days prior to any ground disturbance the applicant shall conduct a follow -up Biological Survey for the burrowing owl. Results of that survey shall be presented to the Planning Division for review and approval prior to obtaining a grading permit. 28. Applicant shall comply with the requirements of the Elsinore Valley Municipal Water District. Proof shall be presented to the Chief Building Official prior to issuance of building permits and final approval. 29. Prior to issuance of building permits, applicant shall provide assurance that all required fees to the Lake Elsinore Unified School District have been paid. 30. Prior to issuance of building permits, applicant shall provide assurance that all requirements of the Riverside County Fire Department have been met. 31. Prior to issuance of building permits, applicant shall pay park -in -lieu fee in effect at time of building permit issuance. 32. The applicant shall comply with Section 17.78, Noise Control of the Lake Elsinore Municipal Code. 33. The Multiple Species Habitat Conservation Fee (MSHCP) shall be due upon issuance of each building permit. Page 4 of 8 � t AGENDA ITEM NO. `_�_ PAGE OF S CONDITIONS OF APPROVAL FOR DESIGN REVIEW INDUSTRIAL PROJECT NO 1 2005 -Oi LOCATED ON PASADENA STREET ENGINEERING DIVISION General Conditions: 34. All Public Works requirements shall be complied with as a condition of development as specified in the Lake Elsinore Municipal Code (LEMC) prior to final map approval. 35. Underground water rights shall be dedicated to the City pursuant to the provisions of Section 16.52.030 (LEMC) and be consistent with the City's agreement with the Elsinore Valley Municipal Water District. 36. Pay all Capital Improvement and Plan Check fees (LEMC 16.34, Resolution 85 -26), mitigation fees, area drainage fee, traffic impact fee (TIF), encroachment permit fees and inspection fees associated with the project and its development. 37. Submit a "Will Serve" letter to the City Engineering Division from the applicable water agency stating that water and sewer arrangements have been made for this project. Submit this letter prior to grading plan approval. 38. An Alquis -Priolo study shall be performed on the site to identify any hidden earthquake faults and /or liquefaction zones present on -site or a licensed geologist or a geotechnical engineer shall prepare a statement, stating there are no known earthquake faults or liquefaction zones present. Street Improvements: 39. All street improvements and street lighting along Pasadena Avenue shall be installed and functioning prior to certificate of occupancy. 40. Construct all public works improvements on Pasadena per approved street plans (LEMC 12.04). Plans must be approved and signed by the City Engineer prior to grading plan approval (LEMC 16.34). 41. Street improvement plans and specifications shall be prepared by a California Registered Civil Engineer. Improvements shall be designed and constructed to .Riverside County Road Department Standards, latest edition, and City Codes (LEMC 12.04 and 16.34). 42. All compaction reports, grade certifications, monument certifications (with tie notes delineated on 8 ' /z" x 11" Mylar) shall be submitted to the Engineering Division before final inspection of public works improvements will be scheduled and approved. 43. Provide final soils report showing compliance with recommendations. Page 5 of 8 AGENDA ITEM NO. LJQ__ pAGE.. 3 OF CONDITIONS OF APPROVAL FOR DESIGN REVIEW INDUSTRIAL PROJECT NO. 12005-01 �•-. LOCATED ON PASADENA STREET 44. The applicant shall install permanent survey monuments in compliance with the City's municipal code. 45. Applicant shall submit a traffic control plan showing all traffic control devices for the project and it shall be approved with the street plans. All traffic control devices shall be installed prior to final inspection of public improvements. This includes No Parking and Street Sweeping Signs. 46. All improvement plans shall be digitized. At Certificate of Occupancy applicant shall submit tapes and /or disks which are compatible with City's ARC Info /GIS or developer to pay $300 per sheet for City digitizing. Grading: 47. Applicant shall obtain all necessary off -site easements for off -site grading or construction from the adjacent property owners prior to issuance of grading permit. 48. Apply and obtain a grading permit prior to building permit issuance. A grading plan signed and stamped by a California Registered Civil Engineer shall be required if the grading exceeds 50 cubic yards or the existing flow pattern is substantially modified as determined by the City 10-1 Engineer. If the grading is less than 50 cubic yards and a grading plan is not required, a grading permit shall still be obtained so that a cursory drainage and flow pattern inspection can be conducted before grading begins. 49. All grading shall be done under the supervision of a geotechnical engineer and he shall certify all slopes steeper than 2 to 1 for stability and proper erosion control. 50. Prior to commencement of grading operations, applicant to provide to the City with a map of all proposed haul routes to be used for movement of import /export material. Such routes shall be subject to the - review and approval of the City Engineer. 51. Applicant to provide to the City a photographic baseline record of the condition of all proposed public City haul roads. In the event of damage to such roads, applicant shall pay full cost of restoring public roads to the baseline condition. A bond may be required to ensure payment of damages to the public right -of -way, subject to the approval of the City Engineer. 52. All waste material, debris, vegetation and other rubbish generated during cleaning, demolition, clear and grubbing or other phases of the construction must be disposed of at appropriate recycling centers. The applicant should contract with CR &R, Inc., for recycling and storage container services, but the applicant may use the services of another recycling vendor. Another recycling vendor, other than CR &R, Inc., cannot charge the applicant for bin rental or solid waste disposal. If the applicant is not using CR &R, Inc., for recycling services and the recycling Page 6 of 8 AGENDA ITEM NO. PAGE N_-- 0F.2 '2 CONDITIONS OF APPROVAL FOR DESIGN REVIEW INDUSTRIAL PROJECT NO 12005-01 LOCATED ON PASADENA STREET material is either sold or donated to another vendor, the applicant shall supply proof of debris disposal at a recycling center, including verification of tonnage by certified weigh master tickets. Utilities: 53. Arrangements for relocation of utility company facilities (power poles, vaults, etc.) out of the roadway or alley shall be the responsibility of the property owner or his agent. 54. Provide fire protection facilities, as required in writing by the Riverside County Fire Department. 55. Developer shall install blue reflective pavement markers in the street at all fire hydrant locations. Drainage: 56. A hydrology and hydraulic study and calculations for the proposed on site storm drainage system shall be submitted and approved prior to issuance of a grading permit. The storm drains and proposed catch basins shall be designed to an approved hydraulic grade line in the Lake Elsinore overflow /outlet channel. This channel has considerable standing water after rainfall. After recent rainfall, at the existing catch basin at the westerly end of Central Avenue standing water was observed in the catch basin to a height that left approximately 6 inches of the exposed soffit of the outlet pipe. As such, the developers engineer shall give special attention in selecting the hydraulic grade line for the overflow /outlet channel in preparation of the hydraulic design of the proposed inlet catch basins. 57. Meet all requirements of LEMC 15.68 regarding flood plain management. 58. The Riverside County Water Quality Management Plan requires this project to prepare a project specific Water Quality Management Plan (WQMP). As such the applicant will be required to prepare a WQMP install BMP's using the best available technology to mitigate any urban pollutants from entering the watershed. The plan shall identify "pollutants of concern" and "hydrologic conditions of concern", and mitigate in accordance with the Riverside County Water Quality Management Plan. The project shall be design a water quality detention basin capable of releasing the post - development 2 -yr and 10 year, 24 hour peak flow rates, respectively, equal to the pre - development 2 year and 10 year 24 hour peak flow rates. The 100 -year storm shall pass without damage to the facility and the outlet velocities shall be controlled such that downstream erosion and habitat loss is minimized. Said plan shall be approved prior to the issuance of a grading or site development permit. 59. Applicant will be required to install BMP's using the best available technology to mitigate any urban pollutants from entering the watershed. Applicant shall provide first flush BMP's using the best available technology that will reduce stormwater pollutants from parking areas and driveways. This would include the use of a biofilter swale or other BMP techniques. Education guidelines and Best Management Practices (BMP) shall be provided to the property owner Page 7 of 8 AGENDA ITEM NO pAGE..3 5 OF.- 5 I,—,- CONDITIONS OF APPROVAL FOR DESIGN REVIEW INDUSTRIAL PROJECT NO. 12005-01 LOCATED ON PASADENA STREET and /or tenant in the use of herbicides, pesticides, fertilizers as well as other environmental awareness education materials on good housekeeping practices that contribute to protection of stormwater quality and meet the goals of the BMP in Supplement "A" in the Riverside County NPDES Drainage Area Management Plan. 60. All drainage facilities in this site shall be constructed to Riverside County Flood Control District Standards. 61. Storm drain inlet facilities shall be appropriately stenciled to prevent illegal dumping in the drain system, the wording and stencil shall be approved by the City Engineer. 62. 10 -year storm runoff should be contained within the curb and the 100 -year storm runoff should be contained with the street right -of -way. When either of these criteria is exceeded, drainage facilities should be installed. 63. Applicant shall obtain approval from Santa Ana Regional Water Quality Control Board for their stormwater pollution prevention plan including approval of erosion control for the grading plan prior to issuance of grading permits. The applicant shall provide a SWPPP for post construction which describes BMP's that will be implemented for the development and including maintenance responsibilities. End of Conditions U: \Imiller \ALL FILES \Conditions of Approval -Org. & Revised \2005 \COFA 12005-01 McArdle Asso. 12- 6- 05.doc Page 8 of 8 AGENDA ITEM NO. `_—.- PAGE 34-- OF-5 I5 I 11/05/05 07:07 Library Conditions 10. GENERAL CONDITIONS FIRE DEPARTMENT 10.FIRE.999 951 955 4886 Riverside County LMS CONDITIONS OF APPROVAL CASE CITY CASE STATEMENT With respect to the.conditions of approval for the referenced project, the Fire Department recommends the following fare protection measures be provided in accordance with Riverside County ordinances and /or recognized fire protection standards: 10.FTRE.999 USE - #01A - SHRLL /FPE /COMM. THESE CONDITIONS ARE FOR A SHELF., BUILDING ONLY. Shell building will receive a shell final only. No Certificate of Occupancy (human occupant and /or materials) will be issued until the building occupant has been identified with their occupancy classification and have been conditioned by .Riverside County Fire Department. Occupant or tenant identification is imperative for oderly and prompt processing. Upon. identification. of the occupant or tenant a Fire Protection'Analysis report maybe required prior to establishing the requirements for the occupancy permit. Failure to provide a comprehensive data analysis and /or technical information acceptable to the fire department may result in project delays. A complete commodity listing disclosing type, quantity, level of hazard and potential for "Reactivity" must be provided within /jgT days. The foregoing is necessary to properly occupancy classify the building(s). Failure to provide comprehensive data and /or highly technical information, will result in project delay and requirement for a complete Fire Protecticbn Study for review. 10_. FIRE . 999 USE -$#04 -HIGH PILE /RACK STORAGE A separate permit may be required for high -pile storage and /or racks. Sprinkler plans and /or sprinkler review must be submitted by a licensed sprinkler contractor with storage and /or rack plans to Riverside County Fire Department for review and approval of the 2001 cfc Article 81 compliance. Complete Article 81 information re: all commodities stored, rack dimensions, placement in building, sprinkler densities, etc: must be provided with suppression system for racks and /or high -pile storage review. A complete listing of commodities, classified using CFC Article 81, 2001 Edition and NFPA 13, 1999 Edition P. 02 Page: 1 DRAFT DRAFT DRAFT AOEWA ITEM NO. PAGE ?__7 . pI 52- tYvv- ut -cuuD riuN uu;Uj Hn K1V UU PIKE Y &E FAX NO. UbI Ubb 466b .1/05/05 Riverside County LMS 17;07 CONDITIONS OF APPROVAL Pik. ry Conditions 10. GENERAL CONDITIONS IO.FIRE.999 USE - #04 -HIGH PILE /RACK STORAGE (cont.) guidelines by a licensed Fire Protection Engineer (or other consultant approved by this jurisdiction). (current plan check deposit base fee is $348.00) IO.FIRE.999 USE -##50 -BLUE DOT REFLECTOR Blue retroreflective pavement markers shall be mounted on private street, public streets and driveways to indicate location of fire hydrants. Prior to installation, placement of markers must be approved by the Riverside County Fire Department. IO.FIRE.999 USE * -##23 -MIN REQ FIRE FLOW Minimum required fire flow shall be ,1&-i GPM for a ,-O- hour duration at 20 PSI residual operating pressure, which must be available before any combustible material ` placed on the job site. Fire flow is based on type'; construction per the 2001 CBC and Buildings) having a fire sprinkler system. 20.FIRE.999 USE - #20 -SUPER FIRE HYDRANT Super fire hydrant (s) (6 11x411x2 1/211) shall be located not less than 25 feet or more than 165 feet from any portion of the building as measured along approved vehicular travel ways. 10.FTRE.999 USE -x$84 -TANK PERMITS Applicant or Developer shall be responsible for obtaining under /aboveground fuel, chemical and mixed liquid storage tank permits, from the Riverside County Fire Department and Environmental Health Departments. Plans must be submitted for approval prior to installation. Aboveground fuel /minced liquid tanks 03) shall meet the following standard: Tank must be-tested and labeled to UL2085 Protected Tank Standard or SwRI 93 -01. The test must include the Projectile Penetration Test and the Heavy Vehicle Impact 'Vest. A sample copy of the tank's label from an independent test laboratory must be included with your plans. (current plan check deposit base fee is $217.00 for firm tank; each additional tank $32.00.) r uJ Page: 2 DRAFT DRAFT DP-AFT r • jay DRAFT AGENDA ITEM NO.- PAGE 3 3g 951 955 4886 P. 04 .1/05/05 Riverside County LmS Page; g ►7:07 CONDITIONS OF APPROVAL ,ibrary Conditions 10. GENERAL CONDITIONS 10.FIRE.999 USE - #89 -RAPID HAZMAT BOX DRAFT Rapid entry Hazardous Material data and key storage cabinet shall be installed on the outside of the building. Plans shall be submitted to the Riverside County Fire Department for approval prior to installation. (current plan check deposit base fee is $126.00.) 10.PTRE.999 USE - #25 -GATE ENTRANCES DRAFT Gate entrances shall be at least two feet wider than the width of the traffic lane(s) serving that gate. Any gate providing access from a road to a driveway shall be located at least 35 feet from the roadway and shall open to allow a vehicle to stop without obstructing traffic on the road. Where a one -way road with a single traffic lane provides access to a gate entrance, a 40 foot turning radius shall be. used. 10.FIRE.999 USE *- #8-8A- AUTO /MAN GATES DRAFT Gate(s) shall be automatic or manual operated, minimum a� feet in width, with a setback of 35 feet from face of curb /flow line. Gate access shall he equipped with a rapid entry system. Plans shall be submitted to the Fire Department for approval prior to installation. Automatic /manual gate pins shall be rated.with shear pin force, not to exceed 30.foot pounds. Automatic gates shall be equipped with emergency backup power. Gates activated by the rapid entry system shall remain open until closed by the rapid entry system. (current plan check deposit base fee is $126.00) 80. PRIOR TO BLDG PRMT ISSUANCE FIRE DEPARTMENT 80.FIRE.999 USE - #17A -BLDG PLAN CHECK $ DRAFT Building Plan check deposit base fee of $1,056.00, shall be paid in a. check or money order to the Riverside County Fire Department after plans have been approved by our office. 80.FIRE.999 USE - #4 -WATER PLANS DRAFT The applicant or developer shall separately submit two copies of the water system plans to the Fire Department for review and approval. Calculated velocities shall not exceed AGENDA ITEM NO. 4(-p PANE 3 5 of 5-77 NOV -07 -2005 MON 08:03 AM RIV CO FIRE P &E FAX NO. 951 955 4886 P. 05 .1/05/05 Riverside County LMS Page: 4 17�W CONDITIONS OF APPROVAL ,i)..__.iry Conditions 80. PRIOR TO BLDG PRMT ISSUANCE 80.FIRE.999 USE - #4-WATER PLANS (cont.) DRAFT 10 feet per second. Plane shall conform to the fire hydrant types, location and spacing, and the system shall meet the fire flow requirements. Plans shall be signed and approved by a registered civil engineer and the local water company with the following certification: "I certify that the design of the water system is in accordance with the requirements prescribed by the Riverside County Fire Department." 90. PRIOR TO BLDG FINAL INSPECTION FIRE DEPARTMENT 90.FIRE.999 USE -#45 -FIRE LANES DRAFT The applicant shall prepare and subMit to the Fire Department for approval, a site plan designating required fire lanee with appropriate lane painting and /or signs. �90.FIRE.999 USE- #12A- SPRINRL,ER SYSTEM DRAFT Inatall'a complete fire sprinkler system per NFPA 13 1999 edition (13D and 13R system are not allowed) in all buildings requiring a. fire flow of 1500 GPM'or greater. Sprinkler system(s) with pipe eizeo in excess of 411 in diamter will require the project structural engineer to certify (wet signature) the stability of the building system for seismic and gravity loads to support the sprinkler system. All fire sprinkler risers shall be protected from any physical damage. The post indicator valve and fire department connection shall be located to the front, within 50 feet of a hydrant, and a minimum of 25 feet from the building(s). A statement that the building(s) will be automatically fire sprinkled must be included on the title page of the building plans. (current sprinkler plan check deposit base fee is $614.00 per riser) pplicant or developer shall be responsible to install a L. Central Station Monitored Fire Alarm System. Monitoring system shall monitor the fire sprinkler system(s) water flow, P.I.V.1's and all control valves. Plans must be submitted to the Fire Department for approval prior to installation. Contact fire department for guideline handout (current monitoring plan check deposit base fee is $192.00) AGENDA ITEM NO. �`-'" PAGE � � OF s L NOV -07 -2005 MON 08:04 AM RIV CO FIRE P &E FAX NO. 951 955 4886 P. 06 11/05/85 Riverside County Lms Page: 5. D7:07 CONDITIONS OF APPROVAL Library Conditions 90. PRIOR TO BLDG FINAL INSPECTION 90.FiRE.999 USE - #27- EXTINGUISHERS DRAFT Install portable fire extinguishers with a minimum rating of 2A -10BC and signage.Fire Extinguishers located in public areas shall be in recessed cabinets mounted 4811 (inches) to center above floor level with maximum 41t projection from the wall. Contact Fire Department for proper placement of equipment prior to installation. 1400 AGENDA ITEM NO. a PAGE 1 OF s 4 txV�i� °gX�ffy3�L�Z # � _ 3aZ�:a3fs- i:s:x :a 1 e. I PQ �Q lZ ,o t l I r 01 W fit, ���/O�E�M/�-LLE : w�a'v'] VWWff O'3SON /� V W ]AV VNWSVd N31N3:) DAIMOD VN3aVSVd U aoau�r� -��C H 77 •; 42. `H o<ii iss� !Na � J 1 I I I� 1 I I I a Vy > �1 all k �_ it Hill Y I 111 11 i5i Joe Q "Zie kpjk tic kikIa AEI s_� v-w s: A 6 � 3p aayy �1 8 A 8 p�gj o 1 0 11 U-1 �LL u I ii 0 Oe eoo(Ep 0880 0 fit S k 2 5 3 Y OCR Ply B 3i AGENDA ITEM F,40.0 - PAGE 4 Z Of 'S Lt% O N N a ° ikal `3 e _1a il 11416 s is i Gp� F� v2..�.�... --- 5Z r I fit It f! e Y I 111 11 i5i Joe Q "Zie kpjk tic kikIa AEI s_� v-w s: A 6 � 3p aayy �1 8 A 8 p�gj o 1 0 11 U-1 �LL u I ii 0 Oe eoo(Ep 0880 0 fit S k 2 5 3 Y OCR Ply B 3i AGENDA ITEM F,40.0 - PAGE 4 Z Of 'S Lt% O N N a ° ikal `3 e _1a il 11416 s is i Gp� F� v2..�.�... --- 5Z _'3 otg= o ; €_ VIN80l1110'3bONISH 3* 1 x 4Y4S ,`aza• = a ]AV VtJ OMJ A31ND D33M03 VN3(IVSVd i 11 A ITEM NO. )AGE L/ ?_ OF s 1 € ¢ ae fig PHI 311 lift, 0. 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PAGE OF 5 Z ♦,1\ O O ISVM1� g� �S.i�gG3 SSS � O MI v1�Jll�J1i � 'Qx� -� Z~ l J F ii MINI) DXIMOJ VNWSbd i�it ! m- � Q 0 § Z� jt LU oil ® ®® 0000000000000000 0 0 00 0 0 0 0 0 4 W ' z 0 Q W AGENDA ITEM NO,..._ PAGE V'1 OF 5 L ..0✓ r1, B9��f�a= oZ ysat ". fg p VfNBO�nvo lsoNn 3)IYl �� v0 r- s g sob M a _ � ,., Q We � c'� MIND 3"JAIM03 VN3aVSVd �$s�� z O Q W ' F" S M11 § z O W uj s fill I V, Flo 'llo, 11 f• d d d ® ®® Q��DDOOQQO�DOQ�� V � Q �� Q° � � 0 AGENDA ITEM NO, `- PAGE. 5._ O � Z O = z O l X O eke O Z F G F 8E5 gg iil�7 i'� I111al mQ111m EE i i T I _ �.... i f ss. Q� - - -- was �Q ■Q YYII p 3 e � 3 .a AGENDA ITEM NO. \ PAGE r OF S Z- ' f et S5 w i a N�y^ J !� ;I;; SOP! � ` w w ff iaa�Ry$7� e� fill ■* a9{ya kW i f ss. Q� - - -- was �Q ■Q YYII p 3 e � 3 .a AGENDA ITEM NO. \ PAGE r OF S Z- • i a A w ff kW ' �; iiitttt e3 yypp nznzQr9a9a i f ss. Q� - - -- was �Q ■Q YYII p 3 e � 3 .a AGENDA ITEM NO. \ PAGE r OF S Z- " e� }eYE4yx� age ,yt # Y y x€ Xaxffi —VIMi # /r- O£Oi FLLf NN VU1 IX N" W MY VMGVSVd SRN3J 3:)S3WWOD VN30VSVd uh MI ,� 00 �.o��.COS;s;;; = v " Il!I 0 PM MR-1 _1 Y ak z4 Z W V Z V O� a � Y� 2 Y lot I ly AGENDA ITEM NO. t �! ilia 0 Z W laJ a a MI ,� 00 �.o��.COS;s;;; = v " Il!I 0 PM MR-1 _1 Y ak z4 Z W V Z V O� a � Y� 2 Y lot I ly AGENDA ITEM NO. t �! CITY OF LAKE ELSINORE REPORT TO CITY COUNCIL TO: MAYOR AND CITY COUNCIL FROM: ROBERT A. BRADY, CITY MANAGER DATE: JANUARY 10, 2006 SUBJECT: PROPOSED AMENDMENT TO JOINT POWERS AGREEMENT CREATING THE WESTERN RIVERSIDE COUNTY REGIONAL CONSERVATION AUTHORITY BACKGROUND When the Western Riverside County Regional Conservation Authority ( "RCA ") was formed pursuant to a joint powers agreement, the participating agencies (including the City) agreed that the Western Riverside Council of Governments ( "WRCOG ") would provide administrative and personnel services to the RCA. On November 7, 2005, WRCOG and the RCA agreed to terminate that arrangement. Accordingly, the RCA will now undertake administrative and personnel duties through its own staff or by separate contract. DISCUSSION In order to implement the proposed change, the Joint Powers Agreement ( "JPA ") forming the RCA has been amended. A "redline" highlighting the proposed revisions to the JPA is attached. A clean copy of the amendment is also included. The RCA Board has requested that each member agency consider and approve the amended JPA. The City Attorney's office has reviewed the amendment to the JPA and determined that the amendment is consistent with the new administrative and personnel responsibilities to be undertaken by the RCA. FISCAL IMPACT None. AGENDA ITEM ICI®. A-�L PACE DE�_ 1% ► AO-1- REPORT TO CITY COUNCIL JANUARY 10, 2006 PAGE 2 RECOMMENDATIONS That the City Council approve the attached Amendment No. 1 to Joint Exercise of Powers Agreement Creating the Western Riverside County Regional Conservation Authority and authorize the Mayor to execute the agreement and any ancillary implementing documents, subject to any minor modifications as may be approved by the City Attorney. PREPARED BY: BARBARA ZEID LEIBOLD, CITY ATTORNEY APPROVED FOR AGENDA LISTING: a/ CFfY MANAGER'S O AGENDA ITEM N®. PAGE 2 _OF -) --�- 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 PROPOSED JPA AMENDMENTS SHOWN AS REDLINE For Reference Only . ArA NOW, THEREFORE, for and in consideration of the mutual covenants and conditions hereinafter I stated, the Parties hereto agree as follows: Section 1. Purpose. The purpose of this Agreement is to create a public agency to acquire, administer, operate and maintain land and facilities to establish habitat reserves for the conservation and protection of species covered by the MSHCP and to implement the MSHCP in the event the MSHCP is approved by the County and Cities and appropriate permits are issued by the U.S. Fish and Wildlife Service and the California Department of Fish and Game. Section 2. Creation of the Authority. Pursuant to the Act, there is hereby created a public agency to be known as the "Western Riverside County Regional Conservation Authority ", hereinafter referred to as the "RCA ". The RCA shall be a public agency, separate and apart from its members, and as provided by law and not otherwise prohibited by this Agreement, shall be empowered to take such actions as may be necessary or desirable to implement and carry out the purposes of this Agreement. Section 3. Powers. In carrying out the purpose of this Agreement, the RCA shall have the following powers: A. To make and enter into contracts; B. To employ agents, consultants, attorneys and employees; C. To acquire property, and any interest in property, both real and personal by purchase, gift, option, grant, bequest, devise or otherwise, and hold and dispose of such property; D. To conduct and direct studies and to develop and implement plans to complement, modify or supplement the MSHCP; E. To incur debts, liabilities, and obligations; F. To sue and be sued in its own name; G. To employ reserve managers and other personnel to operate, maintain, and administer the habitat reserves established through implementation of the MSHCP; H. To be an applicant, make applications for, and receive grants from governmental and 2 AGENDA ITEM PAGE OF 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 PROPOSED JPA AMENDMENTS SHOWN AS REDLINE For Reference Only private entities and to participate in State bond issues; I. To prepare project reports and applications, to qualify for grants, and to enter into grant contracts and to do all other things necessary to comply with State and Federal laws and regulations with respect to grants; J. To borrow or receive advances of funds from its members or from such other sources as may be permitted by law; K. To contract with its members and other entities who operate or will operate the habitat I reserves established through implementation of the MSHCP; L. To issue bonds, notes, warrants and other evidences of indebtedness to finance costs and expenses to carry out the powers of the RCA; M. To acquire, hold, and dispose of equipment; N. To lobby state and federal governments and their officials as well as private entities to obtain funding for implementation of the MSHCP and employ individuals or entities to conduct such lobbying activities on its behalf; and O. To exercise all other powers common to the members not specifically mentioned above which may be necessary to carry out the purposes of this Agreement. Section 4. Term. The term of this Agreement shall commence upon approval and execution by the County and at least one of the fourteen Cities who are Parties to this Agreement and shall continue until terminated by the Parties hereto by their mutual written consent as set forth in Section 5 of this Agreement. Section 5. Termination, Withdrawal and Amendment. A. This Agreement shall be automatically terminated and considered null and void in the event the MSHCP is not approved by the County and the Cities or appropriate permits are not issued by the U.S. Fish and Wildlife Service and the California Department of Fish and Game. B. Any Party to this Agreement may withdraw for any reason upon giving all other Parties sixty (60) days advance written notice of the effective date of such withdrawal. This Agreement shall thereupon be deemed automatically amended to reflect the withdrawal of said Party from the RCA and this Agreement. Upon withdrawal of any Party from the RCA and this Agreement, the withdrawing Party 3 AGENDA ITEM NO. �____OF �°Z PAGE_ 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 PROPOSED JPA AMENDMENTS SHOWN AS REDLINE For Reference Only shall not receive any distribution, partial or otherwise, of any cash or other assets of the RCA. C. Provided there is mutual consent by the governing bodies of each of the Parties to this Agreement, evidenced in writing, this Agreement may be: (1) amended to add new Parties; or (2) amended to change any portion of this Agreement. D. The Parties to this Agreement specifically agree that this Agreement creates an entity which may acquire or hold property. Pursuant to California Government Code Sections 6511 and 6512, upon completion of the purposes of this Agreement or upon termination thereof, any property or assets acquired or surplus money on hand which was obtained pursuant to this Agreement and which is not required by law or contract to be distributed in a different manner, may be returned to the then Parties to the Agreement in proportion to the contributions made or in the alternative may be transferred to any local, state, federal or private entity who agrees to assume the duties and obligations of the RCA. However, any distribution of assets shall be subject to the prior discharge of enforceable liability against the RCA. Subject to the foregoing, each Parties proportionate share shall be based upon each Parties contributions to the RCA submitted to the RCA in accordance with Sections 17.A. and B. below. Section 6. RCA Board and Membership. This Agreement and the authority hereby created shall be administered by the governing body of the RCA which shall be known as the "Board of the Western Riverside County Regional Conservation Authority" hereinafter referred to as the `Board ". The regular members of the Board shall be- eempesed-e€ the five members of the Riverside County Board of Supervisors and one member from each incorporated city who is si ng atory to the Agreement. Written notification of the appointment of a City representative shall be provided to the Chairperson of the Board. Each member of the Riverside County Board of Supervisors may appoint an alternate member and each City may appoint one alternate member. Each regular member and alternate member of a City must hold an elective office on the respective governing body appointing the regular or alternate member. In the absence of a regular member, the alternate member shall, if present, participate in a meeting of the Board the same as if the alternate member were the regular member. Regular members and alternate members shall serve on the Board during the term for which they 4 AGENDA ITEM NO., .Alt ...,� PAGE (f OF 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 PROPOSED 3PA AMENDMENTS SHOWN AS REDLINE For Reference Only were appointed or until their successor has been appointed or their appointment has been revoked, whichever is earlier. However, a regular or alternate member's position on the Board shall automatically terminate if and when the term of the elected public office of such regular or alternate member is I terminated. When a vacancy occurs, it shall be the duty of the respective Party having the vacancy to promptly inform the Board of the name of the replacement regular or alternate member. Regular members and alternate members, if participating in a meeting of the Board on behalf of a regular member, shall be entitled to compensation for participation in meetings of the Board and necessary traveling and personal expenses incurred in the performance of the member's duties as authorized by the Board. Such compensation shall be fixed by resolution of the Board. Section 7. Meetings of the RCA Board. A. Meetings. The Board shall establish the time and place for its regular and special I I meetings. The dates, hour and location of regular meetings shall be fixed by resolution of the Board and a copy of such resolution shall be provided to the governing body of each of the Parties and with each Party's designated regular and alternate member. Special meetings and adjourned meetings may be held as required or permitted by law. All regule& md speeial meetings shall be held, to the extent feasible, on the same dateg as meetings. B. ROO M. Brown Act. All meetings of the Board, including without limitation, J regular, special and adjourned meetings, shall be called, noticed, held and conducted in accordance with the provisions of the Ralph M. Brown Act (commencing with Section 54950 of the California I Government Code). C. Ouorum and Voting.„ A majority of the members of the Board shall constitute a quorum for the transaction of business and all official acts of the Board shall require the affirmative vote of a majority of the members of the Board. Each regular member or alternate member acting in the place of a regular member shall have one vote at meetings of the Board. However, any member of the Board, immediately after a vote of the Board and prior to the start of the next item on the agenda may call for a weighted vote. For an item to be passed by weighted vote, all of the following requirements shall be met: I. the item shall be approved by a majority of the Board members present at S AGENDA ITEM NO., - PACE � OF_ o� �- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 PROPOSED JPA AMENDMENTS SHOWN AS REDLINE For Reference Only the meeting who represent the Riverside County Board of Supervisors, who each shall have one vote; 11. the item shall be approved by a majority of the Board members present at the meeting who represent Cities, who each shall have one vote; and III. the item shall be approved by Board members present at the meeting who represent Cities representing a majority of an equal combination of 1) the population of the county living in incorporated areas within the boundaries of the MSHCP Plan area, and 2) the acres within these incorporated areas anticipated to be conserved within the Criteria Area established by the MSHCP as follows: Banning — 70 acres; Beaumont — 7,250 acres; Calimesa — I,740 acres; Canyon Lake — 40 acres; Corona — 470 acres; Hemet — 810 acres; Lake Elsinore — 6,350 acres; Moreno Valley — 105 acres; Murrieta — 2,390 acres; Norco — 100 acres; Perris — 1,060 acres; Riverside — 90 acres; San Jacinto — 2,130 acres; and Temecula — 990 acres. For purposes of this paragraph, each regular Board member of the meeting who represents a City shall be assigned votes based on the percentage of the population of incorporated areas within the boundaries of the MSHCP Plan area represented by that member in relation to the total population of incorporated areas within the boundaries of the MSHCP Plan area as well as this percentage of the acreage anticipated to be conserved within the Criteria Area subject to the jurisdiction of that member in relation to the total incorporated area acreage within the Criteria Area set forth in the MSHCP. Population data shall be determined through California Department of Finance estimates, adjusted annually. In addition, as lands within the Criteria Area are acquired and conserved, the Board may through resolution revise the above- referenced average number of acres that are anticipated to be conserved within incorporated areas. D. The Board may adopt, from time to time, such rules and regulations for the conduct of its meetings and affairs as it may deem necessary, including, without limitation, the designation of a person to record and transcribe the minutes of each public meeting of the RCA. Section 8. Officers. The Board shall select a Chairperson and a Vice - Chairperson at its first meeting and at the first meeting held in each succeeding calendar year. Additionally, at its first meeting and at the first meeting held in each succeeding calendar year shall, the Board shall select any other officers it deems appropriate. In the event an officer resigns or ceases to be an officer, the Board shal select a replacement therefore at the next regular meeting of the Board. In the absence or inability of the 6 A0041M ITEM '1i0.__4 PAGE ....... -� 1 2 3 4 5' 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 A#0�- 27 28 PROPOSED JPA AMENDMENTS SHOWN AS REDLINE For Reference Only Chairperson to act, the Vice - Chairperson shall act as Chairperson. A. Treasurer. 'fie treasurer of a member agency shall serve as the treasurer of the RCA. The Board pursuant to the adoption of a resolution shall appoint the treasurer of a member agency to serve as the Treasurer. The Treasurer shall have the custody of the RCA money and disburse RCA funds pursuant to the accounting procedures developed in accordance with the provisions of this Agreement, the Act, and with those procedures established by the Board. The Treasurer shall assume the duties described in Section 6505.5 of the Government Code, namely: receive and receipt for all money of the RCA and place in the Treasury of the Treasurer to the credit of the RCA; be responsible upon an official bond as prescribed by the Board for the safekeeping and disbursement of all RCA money so held; pay, when due, out of money of the RCA so held, all sums payable, only upon warrants of the officer performing the functions of the Controller who has been designated by the RCA or Board; verify and report in writing on the first day of July, October, January and April of each year to the RCA the amount of money held for the RCA, the amount of receipts since the last report, and the amount paid out since the last report; and perform such other duties as are set forth in this Agreement or specified by the Board. B. Controller. The Finance Director of —a member agency shall serve as the Controller of the RCA. The Board pursuant to the adoption of a resolution shall appoint the finance director of a member agency to serve as the Controller. The Controller shall draw warrants to pay demands against the RCA when such demands have been approved by the Board or by any other person authorized to so approve such by this Agreement or by resolution of the Board. The Controller shall perform such duties as are set forth in this Agreement and such other duties as are specified by the Board. There shall be strict accountability of all funds and reporting of al receipts and disbursements. The Controller shall establish and maintain such procedures, funds and accounts as may be required by sound accounting practices, the books and records of the RCA in the possession of the I Controller shall be open to inspection at all reasonable times by representatives of the Parties. The Controller, with the approval of the RCA, shall contract with an independent certified I I public accountant or firm or certified public accountants to make an annual audit of the accounts and records of the RCA, and a complete written report of such audit shall be filed as public records annually, within six (6) months of the end of the fiscal year under examination, with each of the Parties. Such 7 AGENDA S` ERA NO.—Ij ... PACE ®F o�_ 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 PROPOSED JPA AMENDMENTS SHOWN AS REDLINE For Reference Only annual audit and written report shall comply with the requirements of Section 6505 of the Government 11M: The cost of the annual audit, including contracts with, or employment of such independent certified public accountants in making an audit pursuant to this Agreement shall be a charge against any unencumbered funds of the RCA available for such purpose. The Board by unanimous vote, may replace the annual audit with a special audit covering a two -year period. Section 9. MSHCP Advisory Committee. Within thirty (30) days after issuance of the permits by the U.S. Fish and Wildlife Service and California Department of Fish and Game for the MSHCP, the Board shall form an MSHCP Advisory Committee. The MSHCP Advisory Committee shall consist of the Riverside County Habitat Conservation Agency (RCHCA) Board of Directors and one representative from each City who is not a member of the RCHCA. Within six (6) months of execution of this Agreement, or at any time thereafter, the Board may review the RCA organizational structure established by this Agreement to determine if it is facilitating MSHCP implementation. Section 10. Executive Director. The Board shall retain an Executive Director to administer the MSHCP in compliance with the duties and responsibilities set forth in Sections 5.0 and 6.0 of MSHCP. As required by the MSHCP, the RCA shall initially contract with the County of Riverside to provide an appropriate department or individual to act as the Executive Director within thirty (30) days of the formation of the RCA. The appropriate department or individual shall be recommended by the County's Executive Officer and considered by the Board. It is understood by the Parties to this Agreement that the Board may accept or reject the County Executive Officer's recommendation of an appropriate department or individual to serve as the Executive Director. This contract shall be for an `initial tern of three (3) years. At least six (6) months prior to the expiration of this initial contract term, the Board shall review the County department's or individual's performance as Executive Director. Based upon this review, the Board may elect to extend the contract with the County or select an alternative entity or individual for the Executive Director position upon expiration of the initial term. Section 11. RESERVED Section 12. Monitoring Program Administrator. Upon issuance of the permits for th, MSHCP by the U.S. Fish and Wildlife Service and California Department of Fish and Game and for a N 01 s AGENDA ITEM Nth. + ,a PAGE_ _Op 1 2 3 4 5 6! 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 PROPOSED JPA AMENDMENTS SHOWN AS REDLINE For Reference Only period of eight (8) years thereafter, the California Department of Fish and Game shall serve as the Monitoring Program Administrator for the MSHCP. The Monitoring Program Administrator shall be responsible for implementing the monitoring program contained in Section 5.0 of the MSHCP and shall perform all duties and responsibilities as set forth in Sections 5.0 and 6.0 of the MSHCP. Thereafter, the Board may elect to have the Department continue acting in the capacity or shall select an alternative individual or entity for this position if the Board determines that the Department cannot adequately perform the duties and responsibilities of this position. Section 13. Reserve Managers. The Board shall retain at least one ' Reserve Manager to manage lands owned by the RCA within the MSHCP Conservation Area. This Reserve Manager(s) shall report to the Executive Director and shall perform all the duties and responsibilities set forth in Section 5.0 and Section 6.0 of the MSHCP. Additionally, Reserve Managers managing lands owned by any Party to this Agreement that are within the MSHCP Conservation Area shall report to the Executive Director. Section 14. Independent Science Advisors. The Board shall retain, as appropriate, independent science advisors who are qualified biologists and conservation experts with expertise in species covered by the MSHCP and their habitats. Additionally, to the extent feasible, the independent science advisors shall have experience in land management. Independent science advisors shall be retained on an annual basis, shall report to the Executive Director and shall comply with the duties and responsibilities set forth in Section 6.0 of the MSHCP. Section 15._ Funding Coordination Committee. Within one hundred and twenty (120) days after issuance of the permits by the U.S. Fish and Wildlife Service and California Department of Fish and Game for the MSHCP, the Board shall form a Funding Coordination Committee to provide recommendations to the Board on local funding priorities and local MSHCP Conservation Area acquisitions. Members of this committee shall be appointed by the Board and shall consist of, at a minimum, representatives of the Parties to this Agreement, the U.S. Fish and Wildlife Service, and the California Department of Fish and Game. To the extent feasible, members of the Funding Coordination Committee shall have expertise in real estate or land use planning and/or experience implementing large scale conservation programs. The Funding Coordination Committee shall make recommendations to the ,Board through the 9 tiiJ�EM, i' ► >�,. iii ®`- _ . w 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 PROPOSED .IPA AMENDMENTS SHOWN AS REDLINE For Reference Only Executive Director on local land acquisitions and funding priorities. Additionally, this Committee shall provide a forum to discuss land acquisition priorities of the U.S. Fish and Wildlife Service and California Department of Fish and Game and acquisitions by other entities using non -local sources of revenue. The Board shall establish policies under which the Funding Coordination Committee shall make recommendations to the Board. Such policies shall include conflict of interest guidelines for the Committee members. IThe Planning Directors of each Party to this Agreement shall receive prior notice of all meetings of the Funding Coordination Committee. Such notice shall include a meeting agenda and a list of potential acquisition sites, if applicable. The Planning Directors or their designated representatives may participate in Committee meetings, as appropriate. Section 16. Reserve Management Oversight Committee. The Reserve Management Oversight Committee (RMOC) shall be formed within sixty (60) days of the effective date of the contract between the RCA and the County concerning the establishment of an Executive Director. The RMOC shall be composed of, at a minimum, one representative appointed by each of the following entities: A. U. S. Fish and Wildlife Service, B. California Department of Fish and Game, C. Riverside County Regional Parks and Open Space District, D. Bureau of Land Management, E. U.S. Forest Service, F. California Department of Parks and Recreation, G. RCA, and H. Up to five (5) other private or public agencies or entities that own or manage land within the MSHCP Conservation Area. The RMOC shall serve as the intermediary between the Reserve Managers and the decision making function of the RCA. The Executive Director shall serve as chair of the RMOC. Section 17. Rules and Governing Law. This Agreement shall be construed and enforced in accordance with the laws of the State of California. The laws of the State of California applicable to th, County of Riverside shall govern the RCA in the manner of exercising its powers, subject, however, to AGENDA 17EWi NU.__�_ 10 PAGE 1 2 3 4 5 6 7 8 9' 10 11 12 13 14 I5 16 17 18 19 20 21 22 23 24 25 26 27 28 PROPOSED JPA AMENDMENTS SHOWN AS REDLINE For Reference Only such restrictions as are applicable to said-e4y-coun1y in the manner of exercising such powers, as required by Government Code Section 6509. The Board, at its first meeting or as soon thereafter as may be possible, shall adopt such rules and regulations as the Board may deem necessary for the conduct of the RCA's affairs. Among these rules shall be a conflict of interest code and a purchasing ordinance. The `Board may, as it deems appropriate, review and revise these rules and regulations. Section 18. ' Fiscal Year. The fiscal year of the RCA shall be the period commencing on July 1 of each year and ending on and including the following June 30. Section 19. Contributions/Estimated Budget. A. Contributions of Development Mitigation Fees. The Parties to this Agreement shall impose a development mitigation fee on all new development to support the acquisition of additional reserve lands pursuant to the MSHCP. All development mitigation fees collected by the Parties shall be forwarded to the RCA within ninety (90) days after receipt by each Party. The RCA may, in its discretion, conduct an audit of the development mitigation fees collected by any Party to this Agreement. B. Other Contributions. The RCA may accept contributions of money or property from the Parties or other individuals or entities including but not limited to contributions from Parties, MSHCP Permittees and Special Participating Entities who obtain take authorization under the MSHCP for public utility, schools, transportation, flood control and other public infrastructure projects. Additionally, a Party may hold and manage its own property as a contribution to implementation of the MSHCP and the MSHCP Conservation Area. Landfill Tipping Fees and Density Bonus Fees collected by the County may be contributed to the RCA on an annual basis subject to the discretion of the Board of Supervisors. C. Use of Contributions. When approved by the Board, revenues received by the RCA, including without limitation, fees and other contributions, shall be used to implement the MSHCP. In addition, the RCA shall reimburse the County for any and all litigation costs, including but not limited to attorneys fees, incurred in defense of any legal challenge concerning the adoption of the MSHCP or any related actions as well as any costs incurred to establish the Executive Director and any other necessary staff prior to entering into the contract contemplated in Section 10 of this Agreement. D. Budget. The annual budget for the RCA shall be prepared by the Executive Director. -4n budget. the altemative, !he RCA may eentraet with WRCOG to prepare an annual The annual budget AGENDA ITEWi iu%. LA -a- II PAGE 0'F ,2� 1 2 3 4 5 61 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 PROPOSED JPA AMENDMENTS SHOWN AS REDLINE For Reference Only shall be based on an estimate of the amount of revenue necessary to implement the MSHCP during the ensuing fiscal year and shall consider necessary land acquisition, improvements, maintenance, management, monitoring, administration, and operation costs during the current fiscal year as such costs are set forth in the then current approved budget for the RCA. Section 20. MSHCP Reporting Requirements. In order to assist in the preparation of the annual report required to be prepared by the BMOC and submitted to the USFWS, CDFG, and RCA as set forth in the MSHCP and Implementing Agreement, the Parties shall on a monthly basis provide the following information to the RCA: A. grading permit activity including the number of the permit issued, the location of the development site identified by assessor's parcel number, and the amount of acreage disturbed; single family home and mobilehome construction activity within the Criteria Area including the number of the grading, building, site preparation or installation permit issued and the location of the development site identified by assessor's parce*w number; C. development mitigation fee collection including identification by assessor's parcel number of the project for which the fee was collected, the amount of the fee paid, and any exemptions or credits that may have been included in any calculation of the fee; and D. any other information required to comply with the provisions of the MSHCP as may be determined necessary by the Executive Director. In addition, the County shall submit on an annual basis all information contained in the Existing Agricultural Operations Database including the amount of new agricultural land, if any, added to the Database as well as any documentation concerning the expansion of agricultural operations within the Criteria Area. Section 21. Joint Proiect/Acouisition Review Process. To ensure that the requirements of the MSHCP and its Implementing Agreement are properly met, a joint project/acquisition review proces shall be instituted by the RCA. This process is set forth in Section 6 of the MSHCP. ^� AGENDA ITEM No. `T 12 PAGE—L.—_oF—aZQ—._ 1 2 3 4 5 6 7 8' 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 PROPOSED JPA AMENDMENTS SHOWN AS REDLINE For Reference Only Section 22. Liabilities. Except as may be provided herein, the debts, liabilities and obligations of the RCA shall be the debts, liabilities and obligations of the RCA alone, and not of the Parties to this Agreement. Section 23. Indemnification. Provided that a Party has acted in good faith and in accordance with this Agreement, the approved MSHCP and its Implementing Agreement and the Permits, the RCA shall defend, indemnify and hold such Party free and harmless from any loss, liability or damage incurred or suffered by such Party by reason of litigation arising from or as a result of any of the following: the Party's development mitigation fee ordinance; the Party's participation in the RCA; actions taken to I approve and/or implement the MSHCP; claims of inverse condemnation or unconstitutional takings against a Party; or any other act performed or to be performed by the Party pursuant to this Agreement, the MSHCP, its Implementing Agreement or the Permits; provided, however, that such indemnification or agreement to hold harmless pursuant to this Section shall be recoverable only out of RCA assets and not from other Parties. Section 24. Notices. Notices required or permitted hereunder shall be sufficiently given if made in writing and delivered either personally or by registered or certified mail, postage prepaid to said respective Parties, as follows: A. Riverside County Conservation Authority Executive Director 4080 Lemon Street, 7t' Floor Riverside, CA 92501 (951 ) 955 -9700 (951) 955 -8873 fax B. County of Riverside Transportation and Land Management Agency Agency Director 4080 Lemon Street, 7a' Floor Riverside, CA 92501 (999} 951 955 -6742 (999} 9( 51) 955 -6879 fax C. City of Banning City Manager 99 E. Ramsey Street Banning, CA 92220 (909 ) (951 922 -3103 (903) 9j 511922 -3128 fax 13 AGENDA 4* — { - O 1 2 3I 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 a� PROPOSED JPA AMENDMENTS SHOWN AS REDLINE For Reference Only D. City of Beaumont - --City Manager 550 E. 6`h Street Beaumont, CA 92223 (909)- 951 769 -8520 (909) 769 -8526 fax E. City of Cahmesa City Manager 908 Park Ave Calimesa, CA 92320 (909) 795 -9801 (909) 795 -4399 fax F. City of Canyon Lake City Manager 31516 Railroad Canyon Road Canyon Lake, CA 92587 (909) 951 244 -2955 (809) 951 246 -2022 fax G. City of Corona City Manager P_O_ Box 940 Corona, CA 92878 (999) 9( 51736 -2371 (909) 951 736 -2493 fax H. City of Hemet City Manager 445 E. Florida Avenue South Hemet, CA 92543 (989) 951 765 -2300 (909) 9( 51) 765 -3785 fax I. City of Lake Elsinore City Manager 130 S. Main Street Lake Elsinore, CA 92530 (999) (201674-6727 ext. 261 (909) (2i,11674-2392 fax J. City of Moreno Valley City Manager P_O= Box 88005 Moreno Valley, CA 92553 (909) 951 413 -3008 (909) 9L51) 413 -3760 fax ACFNi3A jum tj p. L 14 PACE r-1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 PROPOSED JPA AMENDMENTS SHOWN AS REDLINE For Reference Only K. City of Murrieta -City Manager 26442 Beckman Court Murrieta, CA 92562 -9755 (9893 951 698 -1040 (9893 951 698 -9885 fax L. City of Norco City Manager 2870 Clark Avenue Norco, CA 92860 (909) 951 270 -5611 (909) 951 270 -5622 fax M. City of Perris City Manager 101 North D Street Perris, CA 92570 (9893 9( 51 }657 -5882 (909) 9i $I }657 -1087 fax N. City of Riverside City Manager 3900 Main Street Riverside, CA 92522 (989) 951 826 -5991 (9993 9( 512826 -5470 fax O. City of San Jacinto City Manager 201 E Main Street San Jacinto, CA 92583 (9093 951 487 -7342 (984) (2M654-3728 fax P. City of Temecula City. Manager PO Box 9033 Temecula, CA 92589 -9033 (984} 9� 51 1694 -6440 (9093 951 694 -6499 fax Section 25. Severability. If any section, clause or phrase of this Agreement or the application thereof to any Party or any other person or circumstance is for any reason held to be invalid by a court of competent jurisdiction, it shall be deemed severable and the remainder of the Agreement or the application of such provisions to the other party or to other persons or circumstances shall not be affected 15 AGENDA ITEM N0. � PACE E _ O OF :2o). 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 PROPOSED JPA AMENDMENTS SHOWN AS REDLINE For Reference Only thereby. Section 26. Other Agreements Not Prohibited Other agreements by and between the Parties of this Agreement or any other entity are neither prohibited nor modified in any manner by execution of this Agreement. Furthermore, the Parties hereto agree upon request to execute, acknowledge and deliver all additional papers and documents necessary or desirable to cant' out the intent of this Agreement. Section 27. Other Obligations. The responsibilities and obligations of each Party to this Agreement shall be solely as provided in this Agreement, or as may be provided for in supplemental agreements to be executed by the Parties. Section 28. Non-Assignability. The rights, titles and interests of any Party to this Agreement shall not be assignable or transferable without the consent of the governing body of each Party hereto. Section 29. Section Headings. The section headings herein are for convenience of the Parties only, and shall not be deemed to govern, limit, modify or in any manner affect the scope, meaning or intent of the provisions or language of this Agreement. Section 30. Construction of Language. It is the intention of the Parties hereto that if an provision of this Agreement is capable of two constructions, one of which would render the provision void and the other of which would render the provision valid, then the provision shall have the meaning I which renders it valid. Section 3I._ Cooperation. The Parties recognize the necessity and hereby agree to cooperate with each other in carrying out the purposes of this Agreement, including cooperation in matters relating to the public, accounting, litigation, public relations and the like. Section 32. Future Amendments. To preserve a reasonable degree of flexibility, many parts of this Agreement are stated in general terms. It is understood that there may be Amendments to this Agreement which will further define the rights and obligations of the Parties. Section 33. Successors. This Agreement shall be binding upon and shall inure to the benefit of the successors of the Parties hereto. IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed and attested by their proper officers thereunto duly authorized as of the date first above written. 16 AGENDA ITEM NO. L4 PAGE I7 OF odd I IAMENDMENT 2 NO. 1 TO JOINT EXERCISE OF POWERS AGREEMENT CREATING THE WESTERN RIVERSIDE COUNTY REGIONAL CONSERVATION AUTHORITY 3 This Amendment dated , 2005, is made by and between the COUNTY OF 4 RIVERSIDE, hereinafter sometimes referred to as "County ", and the Cities of BANNING, 5 BEAUMONT, CALIMESA, CANYON LAKE, CORONA, HEMET, LAKE ELSINORE, 6 MORENO VALLEY, MURRIETA, NORCO, PERRIS, RIVERSIDE, SAN JACINTO and 7 TEMECULA, hereinafter sometimes referred to as "Cities." 8 9 RECITALS 10 WHEREAS, the Cities and the County hereinafter sometimes jointly referred to as N �Z N 11 "Parties," are authorized and empowered to contract with each other pursuant to Article 1, N� Q c,04 2 Chapter 5, Division 7, Title 1 (commencing with Section 6500) of the Government Code of the 12 UE W u- 'tcCoJ . 13 State of California; and . 0E- jCU CO ja o 14 WHEREAS, the Parties, and each of them, have executed a Joint Exercise Of Powers �m ww 15 Agreement Creating The Western Riverside County Regional Conservation Authority mM > ac 1b ('Agreement "); and 17 WHEREAS, section 32 of the Agreement states that there may be Amendments to the 18 Agreement which will further define the rights and obligations of the Parties. 19 NOW, THEREFORE, for and in consideration of the mutual covenants and conditions 20 hereinafter stated, the Parties hereto agree as follows: 21 Section 1. Deletion of Recital of the Agreement. The following recital shall be 22 deleted from the Agreement: 23 "WHEREAS, it is intended that the activities of the public agency formed pursuant to this 24 Agreement shall be coordinated with the Western Riverside Council of Governments, hereinafter 25 referred herein to as `WRCOG'." 26 Section 2. Revised Agreement Section 6 Reeardine RCA Board and 27 Membership. Section 6 of the Agreement is amended to state the following: 28 -1- AGEN DN I k 6 N a ue LO J Z 0) ((wQ�Z W —�oDD¢ Q'bw0Q U gm7aw 0 CnLO Q Wn W mm > fr 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 I6 17 18 19 20 21 22 23 24 25 26 27 28 "This Agreement and the authority hereby created shall be administered by the governing body of the RCA which shall be known as the "Board of the Western Riverside County Regional Conservation Authority" hereinafter referred to as the `Board ". The regular members of the Board shall be the five members of the Riverside County Board of Supervisors and one member from each incorporated city who is signatory to the Agreement. Written notification of the appointment of a City representative shall be provided to the Chairperson of the Board. Each member of the Riverside County Board of Supervisors may appoint an alternate member and each City may appoint one alternate member. Each regular member and alternate member of a City must hold an elective office on the respective governing body appointing the regular or alternate member. In the absence of a regular member, the alternate member shall, if present, participate in a meeting of the Board the same as if the alternate member were the regular member. Regular members and alternate members shall serve on the Board during the term for which they were appointed or until their successor has been appointed or their appointment has been revoked, whichever is earlier. However, a regular or alternate members position on the Board shall automatically terminate if and when the term of the elected public office of such regular or alternate member is terminated. When a vacancy occurs, it shall be the duty of the respective Party having the vacancy to promptly inform the Board of the name of the replacement regular or alternate member. Regular members and alternate members, if participating in a meeting of the Board on behalf of a regular member, shall be entitled to compensation for participation in meetings of the Board and necessary traveling and personal expenses incurred in the performance of the member's duties as authorized by the Board. Such compensation shall be fixed by resolution of the Board." Section 3. Revised Agreement Section 7.A. Regarding Meetings. Section 7.A. of the Agreement is amended to state the following: "The Board shall establish the time and place for its regular and special meetings. The dates, hour and location of regular meetings shall be fixed by resolution of the Board and a copy -2- AGENDA ITEM ND. L - PA6E.. / - . .t)F e!:�. . N aw LO —� D N JZ W tLa:w Q OC9QNz wCE o- 2p 9)e LL LL kt 0� 1106 �:WE .ui gmDaa to a wr w M M Q ,*-- 1 2 3 4 5 6 7 8 9 10 1I 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 of such resolution shall be provided to the governing body of each of the Parties and with each Party's designated regular and alternate member. Special meetings and adjourned meetings may be held as required or permitted by law." Section 4. Deleted Agreement Section 11 Regarding Administrative/Personnel Services. The provisions of Section 11 of the Agreement are deleted in their entirety. Section 11 is hereinafter marked "Reserved ". Section 5. Revised Agreement Section 17 Regarding Rules and Governing Laws. Section 17 of the Agreement is amended to state the following: "This Agreement shall be construed and enforced in accordance with the laws of the State of California. The laws of the State of California applicable to the County of Riverside shall govern the RCA in the manner of exercising its powers, subject, however, to such restrictions as are applicable to said county in the manner of exercising such powers, as required by Government Code Section 6509. The Board, at its first meeting or as soon thereafter as may be possible, shall adopt such rules and regulations as the Board may deem necessary for the conduct of the RCA's affairs. Among these rules shall be a conflict of interest code and a purchasing ordinance. The Board may, as it deems appropriate, review and revise these rules and regulations." Section 6. Revised Agreement Section 19.D. Regarding the Budget. Section 19.D. of the Agreement is amended to state the following: "The annual budget for the RCA shall be prepared by the Executive Director. The annual budget shall be based on an estimate of the amount of revenue necessary to implement the MSHCP during the ensuing fiscal year and shall consider necessary land acquisition, improvements, maintenance, management, monitoring, administration, and operation costs during the current fiscal year as such costs are set forth in the then current approved budget for the RCA." Section 7. Other Provisions to Remain in Effect. Except as set forth herein, all provisions of the Agreement shall remain in full force and effect, and shall govern the actions of the parties hereto and the amended provisions set forth in -3- I 2 3 4 5 6 7 8 9 10 N D_ w W -J:) N 11 w ° (9 d 4E 12 Cnw Uii —r OCC X O UJM6 13 3LUzow 14 gm:)ao (n LO a 15 wr w aD M > f 16 17 18' 19 20 21 22 23 24 25 26 27 28 this Amendment. Section 8. Effective Date. This Amendment shall become effective on the date that execution of this Amendment is authorized by all of the governing bodies of each Party to the Agreement. -4- AUNDA ITEM ht . `PACE. ,/ ,_OF. o?ot n 1 2 3 4 5 6 7 8 9 10 Paz w 11 Q 03< 12 wo a: U- x o� > I3 3:w2oW 14 �oo:)ao �0 w 15 W r, mM > 16 17 18 19 20 . 21 22 23 24 25 26 27 28 IN WITNESS WBEREOF, the Parties hereto have caused this Amendment to be executed and attested by their proper officers thereunto duly authorized as of the date first above written. Dated: CITY OF BANNING Attest: City Clerk Dated:, Attest: City Clerk Dated: Attest: By: Mayor CITY OF BEAUMONT By: Mayor CITY OF CALIMESA By: City Clerk Mayor Dated: CITY OF CANYON LAKE Attest: City Clerk Dated: - Attest: By: Mayor CITY OF CORONA By: City Clerk Mayor -5- PAGE. ®F_ �a�„ CITY OF LAKE ELSINORE REPORT TO THE CITY COUNCIL TO: MAYOR AND CITY COUNCIL FROM: ROBERT A. BRADY, CITY MANAGER DATE: JANUARY 10, 2006 SUBJECT: CONSTRUCTION CONTRACT AWARD FOR INTERIM IMPROVEMENTS AT I -151 RAILROAD CANYON ROAD INTERCHANGE BACKGROUND Staff has been processing interim design improvements for the I- I 5/Railroad Canyon Road Interchange with CALTRANS since May 2004. The City has received approval for design plans and an encroachment permit from CALTRANS. Currently 37,000 cars use this interchange daily. Substantial future traffic increases are also anticipated. The improvements will occur in two (2) stages. The first stage will include interim improvements that will improve existing and near future traffic flows. The second stage includes plans for ultimate improvements, are currently being studied in coordination with CALTRANS. DISCUSSION This project was advertised and bids were scheduled to be opened on October 4, 2005, however no bids were submittedto the City. On October 11, 2005, Council directed staff to re- advertise the project. On November 16, 2005 at 10:00 a.m., the City received one (1) bid from R.J. Noble Incorporated, to construct Interim Improvements at I -151 Railroad Canyon Road Interchange. The bid from R.J. Noble, Inc. was $2,755,038.70, however the Engineer's Estimate for this project was $1,235,000. Decidedly,R.J. Noble Inc. was the lowest responsible bidder. ...r AGENDA ITEM NO. PAGE I QP REPORT TO CITY COUNCIL JANUARY 10, 2006 �` PAGE 2 FISCAL IMPACT Fiscal Year 2005/ 2006 Capital Improvement Budget allocated $1,400,000 for Interim I -15/ Railroad Canyon Road Interchange improvements. Additional funds in the amount of $1,450,000 will be required to move forward with this project. The additional amount is derived from the following funding sources: Traffic Impact Fees (TIF) $300,000 and Railroad Canyon Benefit Assessment in the amount of $1,150,000 bringing the total project cost to $2,850,000. This amount covers the construction contract of $2,755,038.70 and $94,961.30 for contingency and administrative costs. RECOMMENDATION Staff recommends that the City Council: 1. Award the contract to R.J. Noble, Inc. for Interim Improvements at I -15/ Railroad Canyon Road Interchange. 2. Authorize the City Manager to execute the contract with RJ Noble, Incorporated in the amount of $2,755,038.70 for the construction of this proj ect. 3. Approve the use of an additional $1,150,000 from Railroad Canyon Benefit District Funds and $300,000 from the Traffic Impact Fee (TIF) to finance the modified amount for construction, administration, inspection and materials testing for this project. PREPARED BY: DAVID S. SOLOMON, PROJECT ENGINEER REVIEWED BY: KEN A. SEUMALO, CITY ENGINEER APPROVED FOR AGENDA BY: CITY MANAGEWS OFFICE 10-1- Attachment: Location Map AGENDA REM NO PACE VICINITY MAP INTERSTATE 15 /RAILROAD CANYON ROAD INTERIM IMPROVEMENTS CITY COUNCIL JANUARY 10, 2006 AGENDA ITEM NO. 4B CITY OF LAKE ELSINORE REPORT TO CITY COUNCIL TO: MAYOR AND CITY COUNCIL FROM: ROBERT A. BRADY, CITY MANAGER DATE: JANUARY 10, 2006 SUBJECT: RESOLUTION AUTHORIZING THE ISSUANCE OF BONDS AND APPROVING BOND DOCUMENTS FOR COMMUNITY FACILITIES DISTRICT NO. 2005-1 (SERENITY) BACKGROUND On December 14, 2004, the City adopted a resolution of intention to form Community Facilities District (CFD) 2005 -1 (Serenity) and a resolution of intention to incur bonded indebtedness to finance the facilities. On January 25, 2005, a public hearing was held to form the district and authorize the levy of special taxes. DISCUSSION The developer plans to build 233 single family homes. In order to finance the facilities it is necessary to incur bonded indebtedness. The not to exceed amount is $12,000,000. Before you is the resolution authorizing the issuance of bonds and the related bond documents. The bond issue has been sized at $9,770,000. The resolution approves the following bond documents: 1. Fiscal Agent Agreement (Page 12 to 61 of 225) 2. Continuing Disclosure Agreement (Pages 62 to 71 of 225) 3. Purchase Contract (Page 83 to 110 of 225) 4. Funding, Construction and Acquisition Agreement (Page 111 to 140 of 225) 5. Preliminary Official Statement (Page 141 to 225 of 225) AGENDA ITEM NO. Lf�_ PACE-Z OF ;V,5 REPORT TO CITY COUNCIL JANUARY 10, 2006 PAGE 2 The weighted average residential special tax is estimated at $2,557. The annual CFD tax amounts, when combined with all other property taxes applicable to the project, are estimated to be approximately 1.90 %, which is within the 2% City CFD guidelines. The estimated facility costs to be financed is estimated at $7,656,400. FISCAL IMPACT Repayment of the bonds are secured by the special taxes levied on all property within the district, other than those properties that are exempt as provided in the respective rate and method of apportionment. The City will, however, be faced with a long -term obligation going forward to maintain the streets and other City facilities constructed with proceeds of the CFD bonds. RECOMMENDATION It is recommended that City Council adopt Resolution No. 2006 — which approves the following: 1. Issuance of CFD 2005 -1 (Serenity) 2006 Series A Bonds 2. Fiscal Agent Agreement 3. Continuing Disclosure Agreement 4. Purchase Contract 5. Funding, Construction and Acquisition Agreement 6. Preliminary Official Statement r-1 AGENDA ITEM NO. Lq PAGE a OF a a S REPORT TO CITY COUNCIL JANUARY 10, 2006 PAGE 3 PREPARED BY: APPROVED FOR AGENDA BY: MATT N. PRESSEY DIRECTOR OF AD NISTRATIVE SERVICES MANAGER'S OFFI AGENDA ITEM N0. L�Cl PAGE_ -../ r.o+" PROPOSED BOUNDARY OF COMMUNITY FACILITIES DISTRICT No. 2005 -1 OF THE CITY OF LAKE ELSINORE (SERENITY) COUNTY OF RIVERSIDE, STATE OF CALIFORNIA REFERENCE THE RIVERSIDE COUNTY ASSESSOR'S MAPS SCALE: L" =200' FOR A DETAILED DESCRIPTION OF PARCEL LINES AND DIMENSIONS VICINITY MAP NO SCALE LEGEND DISTRICT BOUNDARY FILED IN THE OFFICE OF THE CITY CLERK OF THE CITY OF LAKE ELSINORE THIS DAY OF 2004. CITY CLERK OF THE CITY OF LAKE ELSINORE 1 HEREBY CERTIFY THAT THE WITHIN MAP SHOWING THE PROPOSED BOUNDARIES OF THE CITY OF LAKE ELSINORE COMMUNITY FACILITIES DISTRICT NO. 2005 -1 (SERENITY) CITY OF LAKE ELSINORE. COUNTY OF RIVERSIDE. STATE OF CALIFORNIA WAS APPROVED BY THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE: AT A REGULARLY SCHEDULED MEETING THEREOF, HELD ON THE _ DAY OF 2004. BY ITS RESOLUTION No. CITY CLERK OF THE CITY OF LAKE ELSINORE FILED THIS DAY OF 2004. AT THE HOUR OF O'CLOCK—.M. IN B _ OOK OF MAPS OF ASSESSMENT AND COMMUNITY FACILITIES DISTRICTS PAGE NOS._THROUGH AS INSTRUMENT NO. IN THE OFFICE OF THE COUNTY RECORDER IN THE COUNTY OF RIVERSIDE, STATE OF CALIFORNIA. COUNTY RECORDER OF THE COUNTY OF RIVERSIDE FEE S I PROPOSED BOUNDARY MAP I Community Facilities District No. 2005 -1 of the City of Lake Elsinore HARRIS & ASSOCIATES (Serenity) 34 E,", P.A. SW. 150 COUNTY OF HNHRSIDH IMn., CA 92614 //6�//����y'��(�� /A� N0. (949) 655 -3900 0 FAX (949) 655 -3995 Bhp I&A{ H` SOURCES AND USES OF FUNDS Community Facilities District 2005 -1 (Serenity) 2005 Series A Sources: Bond Proceeds: Par Amount 9,020,000.00 Original Issue Discount (22,876.65) 8,997,123.35 Uses: Project Fund Deposits: Improvement Fund 7,656,400.00 Other Fund Deposits: Reserve Fund 772,538.70 Delivery Date Expenses: Cost of Issuance 197,000.00 Underwriter's Discount 180,400.00 377,400.00 Other Uses of Funds: Reimbursements 163,000.00 Additional Proceeds 27,784.65 190,784.65 Jan 5, 2006 5:26 pm Prepared by Rod Gunn Associates 8,997,123.35 AGENDA ITEM NO. 4A Page 1 � PAGE S OF -2Z5- N./ -..woe 2,245,000 Term Bond Maturing 2026: BOND PRICING 09/01/2026 1,905,000 5.350% 5.350% 100.000 Term Bond Maturing 2036: Community Facilities District 2005 -1 09/01/2036 4,870,000 5.400% 5.400% 100.000 (Serenity) 2005 Series A 9,020,000 Maturity 02/0712006 Delivery Date Bond Component Date Amount Rate Yield Price Serial Bonds: Par Amount 9,020,000.00 09/01/2007 60,000 3.650% 3.650% 100.000 09/01/2008 70,000 3.800% 3.800% 100.000 09/01/2009 85,000 4.000% 4.000% 100.000 09/01/2010 100,000 4.000% 4.150% 99.379 09/01/2011 115,000 4.200% 4.300% 99.507 09/01/2012 130,000 4.250% 4.400% 99.149 09101/2013 145,000 4375% 4.550% 98.887 09/01/2014 165,000 4.500% 4.700% 98.599 09/01/2015 185,000 4.625% 4.850% 98.290 09/01/2016 205,000 4.700% 4.900% 98.362 09/01/2017 230,000 5.000% 5.000% 100.000 09/01/2018 240,000 5.000% 5.050% 99.535 09/01/2019 250,000 5.000% 5.150% 98.544 09/01/2020 265,000 5.000% 5.200% 97.970. 2,245,000 Term Bond Maturing 2026: 09/01/2026 1,905,000 5.350% 5.350% 100.000 Term Bond Maturing 2036: 09/01/2036 4,870,000 5.400% 5.400% 100.000 9,020,000 Dated Date 02/0712006 Delivery Date 02/07/2006 First Coupon 09/01/2006 Par Amount 9,020,000.00 Original Issue Discount (22,876.65) Production 8,997,123.35 99.746379% Underwriter's Discount (180,400.00) (2.000000) Purchase Price 8,816,723.35 97.746379% Accrued Interest Net Proceeds 8,816,723.35 Jan 5, 2006 5:26 pm Prepared by Rod Gunn Associates Page 2 AGENDA ITEM N0. PACE -OF o BOND SOLUTION Period Ending Proposed Principal Community Facilities District 2005 -1 (Serenity) 2005 Series A Proposed Total Adj Revenue Debt Service Debt Service Constraints Unused Revenues Debt Sery Coverage 09/01/2006 265,604 265,604 570,700 305,096 214.86895% 09/01/2007 60,000 528,713 528,713 582,100 53,388 110.09764% 09/01/2008 70,000 536,523 536,523 593,800 57,278 110.67569% 09/01/2009 85,000 548,863 548,863 605,600 56,738 110.33729% 09/01/2010 100,000 .560,463 560,463 617,800 57,338 110.23039% 09/01/2011 115,000 571,463 571,463 630,100 58,638 110.26095% 09/01/2012 130,000 581,633 581,633 642,700 61,068 110.49933% 09/01/2013 145,000 591,108 591,108 655,600 64,493 110.91045% 09/01/2014 165,000 604,764 604,764 668,700 63,936 110.57210% 09/01/2015 185,000 617,339 617,339 682,100 64,761 110.49039% 09/01/2016 205,000 628,783 628,783 695,700 66,918 110.64239% 09/01/2017 230,000 644,148 644,148 709,600 65,453 110.16110% 09/01/2018 240,000 642,648 642,648 709,600 66,953 110.41823% 09/01/2019 250,000 640,648 640,648 709,600 68,953 110.76294% 09/01/2020 265,000 643,148 643,148 709,600 66,453 110.33239% 09/01/2021 280,000 644,898 644,898 709,600 64,703 110.03299% 09/01/2022 290,000 639,918 639,918 709,600 69,683 110.88929% 09/01/2023 310,000 644,403 644,403 709,600 65,198 110.11751% 09/01/2024 325,000 642,818 642,818 709,600 66,783 110.38903% 09/01/2025 340,000 640,430 640,430 709,600 69,170 110.80056% 09/01/2026 360,000 642,240 642,240 709,600 67,360 110.48829% 09/01/2027 380,000 642,980 642,980 709,600 66,620 110.36113% 09/01/2028 400,000 642,460 642,460 709,600 67,140 110.45046% 09/01/2029 420,000 640,860 640,860 709,600 68,740 110.72621% 09/01/2030 445,000 643,180 643,180 709,600 66,420 110.32681% 09/01/2031 470,000 644,150 644,150 709,600 65,450 110.16068% 09/01/2032 495,000 643,770 643,770 709,600 65,830 110.22570% 09/01/2033 520,000 642,040 642,040 709,600 67,560 110.52271% 09/01/2034 550,000 643,960 643,960 709,600 65,640 110.19318% 09/01/2035 580,000 644,260 644,260 709,600 65,340 110.14187% 09/01/2036 610,000 642,940 642,940 709,600 66,660 110.36800% 9,020,000 18,891,146 18,891,146 21,136,900 2,245,754 N%.D` Jan 5, 2006 5:26 pm Prepared by Rod Gunn Associates AGENDA ITEM NO. 4 Page 3 PACE ge,'Z _OF_� as �, RESOLUTION NO. 2006- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE AUTHORIZING THE ISSUANCE OF THE CITY OF LAKE ELSINORE COMMUNITY FACILITIES DISTRICT NO. 2005 -1 (SERENITY) SPECIAL TAX BONDS, 2006 SERIES A AND THE EXECUTION AND DELIVERY OF A FISCAL AGENT AGREEMENT, A CONTINUING DISCLOSURE AGREEMENT, A PURCHASE CONTRACT, A FUNDING, CONSTRUCTION AND ACQUISITION AGREEMENT, AND AN OFFICIAL STATEMENT AND APPROVING A PRELIMINARY OFFICIAL STATEMENT IN CONNECTION THEREWITH WHEREAS, the City Council (the "Council ") of the City of Lake Elsinore (the "City ") has conducted proceedings under and pursuant to the Mello -Roos Community Facilities Act of 1982, as amended (the "Act "), to form the City of Lake Elsinore Community Facilities District No. 2005 -1 (Serenity) (the "CFD "), to authorize the levy of special taxes upon the land within the CFD, and to issue bonds secured by said special taxes, the proceeds of which are to be used to finance the purchase, construction, expansion or rehabilitation of certain real and other tangible property with an estimated useful life of five years or longer, including public infrastructure facilities and other government facilities (including related capital fees), which are necessary to meet increased demands placed upon the City as a result of development or rehabilitation occurring within the proposed CFD (the "Facilities "); and WHEREAS, the Council intends to issue bonds designated "City of Lake Elsinore Community Facilities District No. 2005 -1 (Serenity) Special Tax Bonds, 2006 Series A" (the "Bonds "); and WHEREAS, there have been submitted to this Council certain documents providing for the issuance of the Bonds and this Council, with the aid of its staff, has reviewed said documents and found them to be in proper order; and WHEREAS, all conditions, things and acts required to exist, to have happened and to have been performed precedent to and in the issuance of said Bonds and the levy of said special taxes as contemplated by this Resolution and the documents referred to herein, exist, have happened and have been performed in 45552275.1 AGENDA ITEM N0. PACE Z la Fa due time, form and manner as required by the laws of the State of California, including the Act. �..r NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS: SECTION 1. The Council hereby authorizes the issuance of the City of Lake Elsinore Community Facilities District No. 2005 -1 (Serenity) Special Tax Bonds, 2006 Series A (the "Bonds ") in an amount not to exceed $12,000,000 for the purpose of financing the Facilities. SECTION 2. The Council hereby approves the Fiscal Agent Agreement in substantially the form annexed hereto. The Mayor, the City Manager or the Director of Administrative Services (each, a "Responsible Officer ") is hereby authorized to execute the Fiscal Agent Agreement with such revisions, amendments and completions as shall be approved by any Responsible Officer executing the same, with the advice of Bond Counsel, such approval to be conclusively evidenced by the execution and delivery thereof. SECTION 3. The Council hereby approves the Continuing Disclosure Agreement in substantially the form annexed hereto. Any Responsible Officer is hereby authorized to execute the Continuing Disclosure Agreement with such revisions, amendments and completions as shall be approved by any Responsible Officer executing the same, with the advice of Bond Counsel, such approval to be conclusively evidenced by the execution and delivery thereof SECTION 4. The Council hereby approves the Funding, Construction and Acquisition Agreement in substantially the form annexed hereto. Any Responsible Officer is hereby authorized to execute the Funding, Construction and Acquisition Agreement with such revisions, amendments and completions as shall be approved by any Responsible Officer executing the same, with the advice of Bond Counsel, such approval to be conclusively evidenced by the execution and delivery thereof. SECTION 5. The Council hereby approves the Preliminary Official Statement relating to the Bonds, substantially in the form annexed hereto, with such revisions, amendments and completions as shall be approved by any Responsible Officer with the advice of Bond Counsel, in order to make the Preliminary Official Statement final as of its date, except for the omission of certain information, as permitted by Section 240.15c2- 12(b)(1) of Title 17 of the Code of Federal Regulations ( "Rule 15c2 -12 "), and any certificate relating to the 45552275.1 AGENDA ITEM No. LCA PAGE _OF�,u_ �-. finality of the Official Statement under Rule 15c2 -12. Any Responsible Officer is authorized and directed to execute and deliver a final Official Statement in substantially the form hereby approved, with such additions and changes as may be approved by Bond Counsel and any Responsible Officer executing the same, such approval to be conclusively evidenced by the execution and delivery thereof. r,�. SECTION 6. The Council hereby approves the Purchase Contract in substantially the form annexed hereto. Any Responsible Officer is hereby authorized to execute the Purchase Contract with such revisions, amendments and completions as shall be approved by any Responsible Officer executing the same, with the advice of Bond Counsel, such approval to be conclusively evidenced by the execution and delivery thereof, provided that, the Purchase Contract shall provide for a true interest cost (including original issue shown) not greater than 6.00 %, and an underwriter's discount not greater than 2.0% of the principal amount of Bonds. SECTION 7. Each Responsible Officer is hereby authorized and directed, for and in the name and on behalf of the City, to do any and all things and take any and all other actions, including the obtaining of municipal bond insurance and the publication of any notices necessary or desirable in connection with the sale of the Bonds and execution and delivery of any and all assignments, certificates, requisitions, agreements, notices, consents, instruments of conveyance, warrants and other documents, which they, or any of them, deem necessary or advisable in order to consummate the lawful issuance and sale of the Bonds and the consummation of the transactions as described herein. SECTION 8. This Resolution shall take effect from and after the date of its passage and adoption. 45552275.1 AGENDA ITEM NO.�- PAGE__ ___� PASSED, APPROVED AND ADOPTED this 10th day of January, 2006. N"90f AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: ABSTAIN: COUNCILMEMBERS: ATTEST: Frederick Ray, City Clerk City of Lake Elsinore APPROVED AS TO FORM: Barbara Zeid Leibold, City Attorney City of Lake Elsinore 45552275.1 Robert E. Magee, Mayor City of Lake Elsinore AGENDA ITEM 140. LO _ PAGE _M _OFQ STATE OF CALIFORNIA } COUNTY OF RIVERSIDE } SS: CITY OF LAKE ELSINORE } I, FREDERICK RAY, CITY CLERK OF THE CITY OF LAKE ELSINORE, DO HEREBY CERTIFY that the foregoing Resolution duly adopted by the City Council of the City of Lake Elsinore at a regular meeting of said Council on the 10th day of January, 2006, and that it was so adopted by the following vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: � ABSENT: COUNCILMEMBERS: ABSTAIN: COUNCILMEMBERS: FREDERICK RAY, CITY CLERK CITY OF LAKE ELSINORE (SEAL) 45552275.1 AGENDA ITEM N0. PAGE�OF FISCAL AGENT AGREEMENT BETWEEN THE CITY OF LAKE ELSINORE COMMUNITY FACILITIES DISTRICT NO. 2005 -1 (SERENITY) F."101; UNION BANK OF CALIFORNIA, N.A., AS FISCAL AGENT DATED AS OF FEBRUARY 1, 2006 RELATING TO CITY OF LAKE ELSINORE COMMUNITY FACILITIES DISTRICT NO. 2005 -1 (SERENITY) SPECIAL TAX BONDS, 2006 SERIES A 45552289.1 AGENDA ITEM NO. C' ... PACE_�OF TABLE OF CONTENTS i ` Page ARTICLEI DEFINITIONS ................................................................................... ............................... 1 Section1.1. Definitions ............................................................................. ............................... 1 ARTICLE II GENERAL AUTHORIZATION AND BOND TERMS ................... ............................... 9 Section 2.1. Amount, Issuance, Purpose and Nature of Bonds ................. ............................... 9 Section 2.2. Type and Nature of Bonds .................................................. ............................... 10 Section 2.3. Equality of Bonds and Pledge of Special Taxes .................. ............................... 10 Section 2.4. Description of Bonds; Interest Rates ................................... ............................... 11 Section 2.5. Place and Form of Payment ................................................ ............................... 11 Section2.6. Form of Bonds ..................................................................... ............................... 12 Section 2.7. Execution and Authentication ............................................. ............................... 12 Section2.8. Bond Register ...................................................................... ............................... 12 Section 2.9. Registration of Exchange or Transfer ................................. ............................... 13 Section 2.10. Mutilated, Lost, Destroyed or Stolen Bonds ....................... ............................... 13 Section 2.11. Validity of Bonds ................................................................ ...:........................... 13 Section2.12. Book -Entry System ............................................................. ............................... 14 Section 2.13. Representation Letter .......................................................... ............................... 14 Section 2.14. Transfers Outside Book -Entry System ................................ ............................... 15 Section 2.15. Payments to the Nominee .................................................... ............................... 15 Section 2.16. Initial Depository and Nominee .......................................... ............................... 15 ARTICLE III CREATION OF FUNDS AND APPLICATION OF SPECIAL TAXES ....................... 15 Section 3.1. Creation of Funds; Application of Proceeds ....................... ............................... 15 Section 3.2. Deposits to and Disbursements from Special Tax Fund ..... ............................... 16 Section 3.3. Interest Account and Principal Account of the Special Tax Fund ..................... 16 Section 3.4. Redemption Account of the Special Tax Fund ................... ............................... 17 Section 3.5. Reserve Account of the Special Tax Fund .......................... ............................... 17 Section 3.6. Administrative Expense Account of the Special Tax Fund ............................... 18 Section3.7. Surplus Fund ....................................................................... ............................... 18 Section 3.8. Acquisition and Construction Fund ..................................... ............................... 19 Section3.9. Investments ......................................................................... ............................... 19 ARTICLE IV REDEMPTION OF BONDS ........................................................... ............................... 20 Section 4.1. Redemption of Bonds .......................................................... ............................... 20 Section 4.2. Selection of Bonds for Redemption .................................... ............................... 22 Section 4.3. Notice of Redemption ......................................................... ............................... 22 Section 4.4. Partial Redemption of Bonds .............................................. ............................... 23 Section 4.5. Effect of Notice and Availability of Redemption Money ... ............................... 23 ARTICLE V COVENANTS AND WARRANTY ................................................ ............................... 24 Section5.1. Warranty .............................................................................. ............................... 24 Section5.2. Covenants ............................................................................ ............................... 24 ARTICLE VI AMENDMENTS TO FISCAL AGENT AGREEMENT ................ ............................... 29 Section 6.1. Supplemental Fiscal Agent Agreements or Orders Not Requiring Bondowner Consent ............................................................ ............................... 29 Section 6.2. Supplemental Fiscal Agent Agreements or Orders Requiring Bondowner Consent................................................................................ ............................... 30 Section 6.3. Notation of Bonds; Delivery of Amended Bonds ............... ............................... 31 ARTICLEVII FISCAL AGENT ............................................................................. ............................... 31 Section7.1. Fiscal Agent ........................................................................ ............................... 31 Section 7.2. Removal of Fiscal Agent ..................................................... ............................... 32 Section 7.3. .. ............................... Resignation of Fiscal Agent ........ ............................... ....... 32 45552289.1 AGENDA ITEM NO. `� q PAGE I OF TABLE OF CONTENTS (continued) Page Section 7.4. Compensation and Liability of Fiscal Agent ....................... ............................... 32 Section 7.5. Merger or Consolidation ..................................................... ............................... 33 ARTICLE VIII EVENTS OF DEFAULT; REMEDIES ........................................... ............................... 34 Section8.1. Events of DefauIt ................................................................. ............................... 34 Section 8.2. Remedies of Owners ........................................................... ............................... 34 ARTICLEIX DEFEASANCE ................................................................................ ............................... 35 Section9.1. Defeasance .......................................................................... ............................... 35 Section 9.2. No Additional Bonds ........................................................... ............................... 36 ARTICLEX MISCELLANEOUS ........................................................................ ............................... 36 Section 10.1. Cancellation of Bonds ......................................................... ............................... 36 Section 10.2. Execution of Documents and Proof of Ownership .............. ............................... 37 Section10.3. Unclaimed Moneys ............................................................. ............................... 37 Section 10.4. Provisions Constitute Contract ............................................ ............................... 38 Section 10.5. Future Contracts .................................................................. ............................... 38 Section 10.6. Further Assurances .............................................................. ............................... 38 Section10.7. Severability ......................................................................... ............................... 38 Section10.8. Notices ................................................................................ ............................... 38 Section 10.9. General Authorization ......................................................... ............................... 38 Section 10.10. Execution in Counterparts ................................................... ............................... 38 ExhibitA — Form of Bond ........................................................................................ ............................... A -1 ExhibitB — Requisition No. 1 .................................................................................. ............................... B -1 45552289.1 ii AGENDA ITEM NO. " CI PAGE I ! OF o�a n FISCAL AGENT AGREEMENT THIS FISCAL AGENT AGREEMENT, dated as of February 1, 2006, between the City of Lake Elsinore Community Facilities District No. 2005 -1 (Serenity) and Union Bank of California, N.A., as fiscal agent (the "Fiscal Agent ") governs the terms of the City of Lake Elsinore Community Facilities District No. 2005 -1 (Serenity) Special Tax Bonds, 2006 Series A. RECITAL S: WHEREAS, the City Council of the City of Lake Elsinore (the "Council'), located in Riverside County, California, has heretofore undertaken proceedings and declared the necessity to issue bonds on behalf of the City of Lake Elsinore Community Facilities District No. 2005 -1 (Serenity) (the "CFD ") pursuant to the terms and provisions of the Mello -Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, Part 1, Division 2, Title 5, of the Government Code of the State of California (the "Act "); and WHEREAS the qualified electors within the CFD have approved the levy of a special tax and the issuance of bonds by the CFD and the CFD has authorized the issuance of bonds in one or more series, pursuant to the Act, in an aggregate principal amount not to exceed $12,000,000; and WHEREAS, the Council intends to accomplish the financing of the purchase, construction, expansion or rehabilitation of certain real and other tangible property with an estimated useful life of five years or longer, including public infrastructure facilities and other governmental facilities (including related capital fees), which are necessary to meet increased demands placed upon the City as a result of development or rehabilitation occurring within the CFD (collectively, the "Facilities ") through the issuance of bonds in an aggregate principal amount of $ designated as the "City of Lake Elsinore Community Facilities District No. 2005 -1 (Serenity) Special Tax Bonds, 2006 Series A" (the "Bonds "); and WHEREAS, all requirements of the Act for the issuance of the Bonds have been satisfied; NOW, THEREFORE, in order to establish the terms and conditions upon and subject to which the Bonds are to be issued, and in consideration of the premises and of the mutual covenants contained herein and of the purchase and acceptance of the Bonds by the Owners thereof, and for other valuable consideration, the receipt of which is hereby acknowledged, the CFD does hereby covenant and agree, for the benefit of the Owners of the Bonds (as defined herein) which may be issued hereunder from time to time, as follows: ARTICLE I DEFINITIONS Section I.I. Definitions. Unless the context requires, the following terms shall have the following meanings: "Acquisition and Construction Fund" means the fund by such name created and established pursuant to Section 3.1 hereof. "Act" means the Mello -Roos Community Facilities Act of 1982, as amended, Sections 53311 et seq. of the California Government Code. 45552289.1 AGENDA ITEM NO. Q q PAGE_ j_r2_0F.� "Administrative Expense Account" means the account by such name in the Special Tax Fund created and established pursuant to Section 3.1 hereof. 1"00 "Administrative Expenses" means the administrative costs with respect to the calculation and collection of the Special Taxes, including all attorneys' fees and other costs related thereto, the fees and expenses of the Fiscal Agent, any fees for credit enhancement for the Bonds which are not otherwise paid as Costs of Issuance, any costs related to the CFD's compliance with State and federal laws requiring continuing disclosure of information concerning the Bonds and the CFD, and any other costs otherwise incurred by the City's staff on behalf of the CFD in order to carry out the purposes of the CFD as set forth in the Resolution of Formation and any obligation of the CFD hereunder. "Annual Debt Service" means the principal amount of any Outstanding Bonds payable in a Bond Year either at maturity or pursuant to a Sinking Fund Payment and any interest payable on any Outstanding Bonds in such Bond Year, if the Bonds are retired as scheduled. "Authorized Investments" means any of the following which at the time of investment are legal investments under the laws of the State for the moneys proposed to be invested therein: (1) Direct obligations of the United States of America (including obligations issued or held in book -entry form on the books of the Department of the Treasury, and CATS and TIGRS) or obligations the principal of and interest on which are unconditionally guaranteed by the United States of America ( "Direct Obligations "). (2) Bonds, debentures, notes or other evidence of indebtedness issued or guaranteed by any of the following federal agencies and provided such obligations are backed by the full faith and credit of the United States of America (stripped securities are only permitted if they have been stripped by the agency itself): U.S. Export-Import Bank ( "Eximbank ") Direct obligations or fully guaranteed certificates of beneficial ownership Farmers Home Administration ( "FmHA ") Certificates of beneficial ownership Federal Financing Bank Federal Housing Administration Debentures ( "FHA ") General Services Administration Participation certificates Government National Mortgage Association ( "GNMA" or "Ginnie Mae ") GNMA- guaranteed mortgage- backed bonds GNMA- guaranteed pass - through obligations 45552289.1 2 AGENDA ITEM NO. PACE (_OF AX, a 10•-.. U.S. Maritime Administration Guaranteed Title XI financing U.S. Department of Housing and Urban Development (HUD) Project Notes Local Authority Bonds New Communities Debentures - U.S. government guaranteed debentures U.S. Public Housing Notes and Bonds - U.S. government guaranteed public housing notes and bonds (3) Bonds, debentures, notes or other evidence of indebtedness issued or guaranteed by any of the following non -full faith and credit U.S. government agencies (stripped securities are only permitted if they have been stripped by the agency itself: Federal Home Loan Bank S ste Senior debt obligations Federal Home Loan Mortgage Corporation ( "FHLMC" or "Freddie Mac ") Participation certificates Senior debt obligations Federal National Mortgage Association ( "FNMA" or "Fannie Mae") Mortgage- backed securities and senior debt obligations Student Loan Marketing Association ( "SLMA" or "Sallie Mae ") Senior debt obligations Resolution Funding Corp. ( "REFCORP ") obligations Farm Credit System CM. - Consolidated system -wide bonds and notes (4) Money market funds registered under the Federal Investment Company Act of 1940, whose shares are registered under the Securities Act of 1933, and having a rating by Standard & Poor's of AAAm -G, AAAm or AAm, and, if rated by Moody's, rated Aaa, Aal or Aa2 (including those of the Fiscal Agent and its affiliates). (5) Certificates of deposit secured at all times by collateral described in (1) and/or (2) above. Such certificates must be issued by commercial banks, savings and loan associations or mutual savings banks. The collateral must be held by a third party and the Bondholders must have a perfected first security interest in the collateral. 45552289.1 AGENDA ITEM 1-NO.. PAGE..1.1 OF (6) Certificates of deposit, savings accounts, deposit accounts or money market deposits which are fully insured by FDIC or which are with a bank rated AA or better by Standard & Poor's and Aa or better by Moody's (including those of the Fiscal Agent and its affiliates). N„ir (7) Investment Agreements with any corporation, including banking or financial institutions, provided that (a) the long -term debt of the provider of any such investment agreement is rated, at the time of investment, at least "AA" and "Aa" by the Rating Agency (without regard to gradations of plus or minus within such category), and (b) any such investment agreement is collateralized with United States Treasury or agency obligations which at least equal 102% of the principal amount invested thereunder, and (c) any such agreement shall include a provision to the effect .that, in the event the Iong -term debt rating of the provider of such agreement is downgraded below "AA-" or below "Aa" by the applicable Rating Agency, the CFD has the right to withdraw or cause the Fiscal Agent to withdraw all funds invested in such agreement and thereafter to invest such funds pursuant to this Fiscal Agent Agreement. (8) Commercial paper rated, at the time of purchase, "Prime - 1" by Moody's and "A -1" or better by Standard & Poor's. (9) Bonds or notes issued by any state or municipality which are rated by Moody's and Standard & Poor's in one of the two highest rating categories assigned by such agencies. (10) Federal funds or bankers acceptances with a maximum term of one year of any bank which has an unsecured, uninsured or unguaranteed obligation rating of "Prime - 1" or "A3" or better by Moody's and "A -I" or "A" or better by Standard & Poor's. (11) Repurchase agreements collateralized by Direct Obligations, GNMAs, FNMAs or FHLMCs with any registered broker /dealer subject to the Securities Investors' Protection Corporation jurisdiction or any commercial bank insured by the FDIC, if such broker /dealer or bank has an uninsured, unsecured and unguaranteed obligation rated "P -1" or "A3" or better by Moody's, and "A -1" or "A -" by Standard & Poor's; provided: (a) a master repurchase agreement or specific written repurchase agreement governs the transaction; and (b) the securities are held free and clear of any lien by the Fiscal Agent or an independent third party acting solely as agent ( "Agent ") for the Fiscal Agent, and such third party is (i) a Federal Reserve Bank, (ii) a bank which is a member of the Federal Deposit Insurance Corporation and which has combined capital, surplus and undivided profits of not less than $50 million, or (iii) a bank approved in writing for such purpose by Financial Guaranty Insurance Company, and the Fiscal Agent shall have received written confirmation from such third party that it holds such securities, free and clear of any lien, as agent for the Fiscal Agent; and (c) a perfected first security interest under the Uniform Commercial Code, or book entry procedures prescribed at 31 C.F.R. 306.1 et seq. or 31 C.F.R. 350.0 et seq. in such securities is created for the benefit of the Fiscal Agent; and 45552289.1 4 AGENDA ITEM NO. L PACE_ I A OF.� (d) the repurchase agreement has a term of 180 days or less, and the Fiscal Agent or the Agent will value the collateral securities no less frequently than weekly and will liquidate the collateral securities if any deficiency in the required collateral percentage is not restored within two business days of such valuation; and (e) the fair market value of the securities in relation to the amount of the repurchase obligation, including principal and interest, is equal to at least 103% (12) Local Agency Investment Fund ( "LAIF") of the State of California. (13) Any other investment which the CFD is permitted by law to make. "Authorized Representative of the CFD" means the Mayor, City Manager, Administrative Services Director, or any other person or persons designated by the Council and authorized to act on behalf of the CFD by a written certificate signed on behalf of the CFD by the Mayor or the City Manager and containing the specimen signature of each such person. "Bond Counsel means an attorney at law or a firm of attorneys selected by the CFD of nationally recognized standing in matters pertaining to the tax - exempt nature of interest on bonds issued by states and their political subdivisions duly admitted to the practice of law before the highest court of any state of the United States of America or the District of Columbia. "Bond Register" means the books which the Fiscal Agent shall keep or cause to be kept on which the registration and transfer of the Bonds shall be recorded. "Bondowner" or "Owner" means the person or persons in whose name or names any Bond is registered. "Bonds" means the CFD's $ Special Tax Bonds, 2006 Series A, issued pursuant to this Fiscal Agent Agreement. "Bond Year" means the twelve month period commencing on September 2 of each year and ending on September 1 of the following year, except that the first Bond Year for the Bonds shall begin on the Delivery Date and end of the first September 1 which is not more than 12 months after the Delivery Date. "Business Day" means a day which is not a Saturday or Sunday or a day of the year on which banks in New York, New York, Los Angeles, California, or the city where the corporate trust office of the Fiscal Agent is located, are not required or authorized to remain closed. "Certificate of Authorized Representative of the CFD" means a written certificate or warrant request executed by an Authorized Representative of the CFD. "CFD" means the City of Lake Elsinore Community Facilities District No. 2005 -1 (Serenity) established pursuant to the Act and the Resolution of Formation. "City" means the City of Lake Elsinore, California. "Code" means the Internal Revenue Code of 1986 and any Regulations, rulings, judicial decisions, and notices, announcements, and other releases of the United States Treasury Department or Internal Revenue Service interpreting and construing it. 45552289.1 AGENDA ITEM N0. L-n PACE W "Costs of Issuance" means the costs and expenses incurred in connection with the issuance and sale of the Bonds, including the acceptance and initial annual fees and expenses of the Fiscal Agent and its counsel, legal fees and expenses, costs of printing the Bonds and the preliminary and final official 1"10' statements for the Bonds, fees of financial consultants and all other related fees and expenses, as set forth in a Certificate of Authorized Representative of the CFD. "Costs of Issuance Account means the account by such name in the Acquisition and Construction Fund created and established pursuant to Section 3.1 hereof "Defeasance Securities" means any of the following: (a) Cash (b) United States Treasury Certificates, Notes and Bonds (including State and Local Government Series -- "SLGS "). (c) Direct obligations of the U.S. Treasury which have been stripped by the U.S. Treasury itself, e.g., CATS, TIGRS and similar securities. (d) - The interest component of Resolution Funding Corp. strips which have been stripped by request to the Federal Reserve Bank of New York and are in book -entry form. (e) Pre - refunded municipal bonds rated "Aaa" by Moody's and "AAA" by Standard & Poor's. (f) Obligations issued by the following agencies which are backed by the full faith and credit of the United States: U.S. Export-Import Bank - direct obligations or fully guaranteed certificates of beneficial ownership Farmers Home Administration - certificates of beneficial ownership Federal Financing Bank General Services Administration - participation certificates U.S. Maritime Administration - guaranteed Title XI financing U.S. Department of Housing and Urban Development (HUD) - Project Notes, Local Authority Bonds, New Communities Debentures - U.S. government guaranteed debentures, U.S. Public Housing Notes and Bonds - U.S. government guaranteed public housing notes and bonds. "Council" means the City Council of the City of Lake Elsinore. "Delivery Date" means, with respect to the Bonds, the date on which the bonds of such issue were issued and delivered to the initial purchasers thereof. "Depository" shall mean The Depository Trust Company, New York, New York, and its successors and assigns as securities depository for the Certificates, or any other securities depository acting as Depository under Article II hereof. AGENDA Mm N0. 45552289.1 6 PAM aC) 0 _ Afw-� "Fiscal Agent" means Union Bank of California, N.A., a national banking association duly organized and existing under and by virtue of the laws of the United States of America, at its principal corporate trust office in Los Angeles, California, and its successors or assigns, or any other bank or trust company which may at any time be substituted in its place as provided in Sections 7.2 or 7.3 and any successor thereto. "Fiscal Agent Agreement" means this Fiscal Agent Agreement, together with any Supplemental Fiscal Agent Agreement approved pursuant to Article 6 hereof. "Fiscal Year" means the period beginning on July 1 of each year and ending on the next following June 30. "Independent Financial Consultant" means a financial consultant or special tax consultant or firm of either such consultants generally recognized to be well qualified in the financial consulting or special tax consulting field, appointed and paid by the CFD, who, or each of whom: (1) is, in fact, independent and not under the domination of the CFD; (2) does not have any substantial interest, direct or indirect, in the CFD; and (3) is not connected with the CFD as a member, officer or employee of the CFD, but who may be regularly retained to make annual or other reports to the CFD. "Interest Account" means the account by such name created and established in the Special Tax Fund pursuant to Section 3.1 hereof. "Interest Payment Date" means each March 1 and September 1, commencing September 1, 2006, provided, however, that, if any such day is not a Business Day, interest up to the Interest Payment Date will be paid on the Business Day next preceding such date. "Investment Agreement" means one or more agreements for the investment of funds of the CFD complying with the criteria therefor as set forth in Subsection (7) of the definition of Authorized Investments herein. "Maximum Annual Debt Service" means the maximum sum obtained for any Bond Year prior to the final maturity of the Bonds by adding the following for each Bond Year: (1) the principal amount of all Outstanding Bonds payable in such Bond Year either at maturity or pursuant to a Sinking Fund Payment; and (2) the interest payable on the aggregate principal amount of all Bonds Outstanding in such Bond Year if the Bonds are retired as scheduled. "Moody's" means Moody's Investors Service, its successors and assigns. "Nominee" shall mean the nominee of the Depository, which may be the Depository, as determined from time to time pursuant to Section 2.16 hereof. "Outstanding" or "Outstanding Bonds" means all Bonds theretofore issued by the CFD, except: (1) Bonds theretofore cancelled or surrendered for cancellation in accordance with Section 10.1 hereof, NO. C AGENDA C�EIIA assszzs9.� 7 PACE _OF: Qa (2) Bonds for payment or redemption of which monies shall have been theretofore deposited (whether upon or prior to the maturity or the redemption date of such Bonds), provided that, if such Bonds are to be redeemed prior to the maturity thereof, notice of such redemption shall have been given as provided in this Fiscal Agent Agreement; and (3) Bonds which have been surrendered to the Fiscal Agent for transfer or exchange pursuant to Section 2.9 hereof or for which a replacement has been issued pursuant to Section 2.10 hereof. "Participants" shall mean those broker - dealers, banks and other financial institutions from time to time for which the Depository holds Bonds as securities depository. "Person" means natural persons, firms, corporations, partnerships, associations, trusts, public bodies and other entities. "Principal Account" means the account by such name in the Special Tax Fund created and established pursuant to Section 3.1 hereof. "Principal Office of the Fiscal Agent" means the office of the Fiscal Agent located in Los Angeles, California or such other office or offices as the Fiscal Agent may designate from time to time, or the office of any successor Fiscal Agent where it principally conducts its business of serving as Fiscal Agent under indentures pursuant to which municipal or governmental obligations are issued. "Project" means those public facilities described in the Resolution of Formation which are to be acquired or constructed within the CFD, including all engineering, planning and design services and other incidental expenses related to such facilities and other facilities, if any, authorized by the qualified electors within the CFD from time to time. "Project Costs" means the amounts necessary to finance the Project, to create and replenish any necessary reserve funds, to pay the initial and annual costs associated with the Bonds, including, but not limited to, remarketing, credit enhancement, Fiscal Agent and other fees and expenses relating to the issuance of the Bonds and the formation of the CFD, and to pay any other "incidental expenses" of the CFD, as such term is defined in the Act. "Rating Agency" means Moody's and Standard & Poor's, or both, as the context requires. "Record Date" means the fifteenth day of the month preceding an interest Payment Date, regardless of whether such day is a Business Day. "Redemption Account" means the account by such name created and established in the Special Tax Fund pursuant to Section 3.1 hereof. "Regulations" means the regulations adopted or proposed by the Department of Treasury from time to time with respect to obligations issued pursuant to section 103 of the Code. "Representation Letter" shall mean the Blanket Letter of Representations from the CFD to the Depository as described in Section 2.13 hereof. "Reserve Account" means the account by such name created and established in the Special Tax Fund pursuant to Section 3.1 hereof. `./ 45552289.1 8 AGENDA REM N0. 4 - PACE _� OF AO-1- "Reserve Requirement" means, as of any date of calculation, an amount equal to the lowest of (1) 10% of the issue price (as defined pursuant to section 148 of the Code), or (2) Maximum Annual Debt Service, or (3) 125% of the average Annual Debt Service of the Outstanding Bonds. "Resolution of Formation" means Resolution No. 2005 -10 adopted by the Council on January 25, 2005, pursuant to which the Council formed the CFD. "Sinking Fund Payment" means the annual payment to be deposited in the Redemption Account to redeem a portion of the Term Bonds in accordance with the schedule set forth in this Fiscal Agent Agreement. "Special Taxes" means the taxes authorized to be levied by the CFD on parcels within the CFD in accordance with the Resolution of Formation, the Act and the voter approval obtained at the January 25, 2005 election in the CFD and any additional special taxes authorized to be levied by the CFD from time to time which are pledged by the CFD to the repayment of the Bonds, together with the proceeds collected from the sale of property pursuant to the foreclosure provisions of this Fiscal Agent Agreement for the delinquency of such Special Taxes remaining after the payment of all the costs related to such foreclosure actions, including, but not limited to, all legal fees and expenses, court costs, consultant and title insurance fees and expenses. hereof. assigns. "Special Tax Fund" means the fund by such name created and established pursuant to Section 3.1 "Standard & Poor's" means Standard & Poor's, a division of McGraw -Hill, its successors and "Supplemental Fiscal Agent Agreement" means any supplemental fiscal agent agreement amending or supplementing this Fiscal Agent Agreement. "Surplus Fund" means the fund by such name created and established pursuant to Section 3.1 hereof. "Tax Certificate" means the certificate by that name to be executed by the CFD on a Delivery Date to establish certain facts and expectations and which contains certain covenants relevant to compliance with the Code. "Term Bonds" means the Bonds maturing on September 1, and September 1, "Underwriter" means the institution or institutions, if any, with whom the CFD enters into a purchase contract for the sale of the Bonds. "Written Request of the CFD" means a request in writing executed by the Mayor, City Manager, City Treasurer, or written designee, on behalf of the CFD. ARTICLE II GENERAL AUTHORIZATION AND BOND TERMS Section 2.1. Amount, Issuance, Purpose and Nature of Bonds. Under and pursuant to the Act, the Bonds in the aggregate principal amount of $ shall be issued for the purpose of '^ financing the Project, provided that the aggregate principal amount of the Bonds shall not exceed the total 45552289.1 AGENDA ITEM N0. PAGE o, I OF -aa & indebtedness presently authorized or subsequently authorized by the qualified electors of the CFD in accordance with the Act. The Bonds shall be and are limited obligations of the CFD and shall be payable as to the principal thereof and interest thereon and any premiums upon the redemption thereof solely from `"10 the Special Taxes and the other amounts in the Special Tax Fund (other than amounts in the Administrative Expense Account). Section 2.2. Type and Nature of Bonds. Neither the faith and credit nor the taxing power of the City, the State of California or any political subdivision thereof other than the CFD is pledged to the payment of the Bonds. Except for the Special Taxes, no other taxes are pledged to the payment of the Bonds. The Bonds are not general or special obligations of the City nor general obligations of the CFD, but are limited obligations of the CFD payable solely from certain amounts deposited by the CFD in the Special Tax Fund (exclusive of amounts transferred to the Administrative Expense Account), as more fully described herein. The CFD's limited obligation to pay the principal of, premium, if any, and interest on the Bonds from amounts in the Special Tax Fund (exclusive of amounts transferred to the Administrative Expense Account) is absolute and unconditional, free of deductions and without any abatement, offset, recoupment, diminution or set -off whatsoever. No Owner of the Bonds may compel the exercise of the taxing power by the CFD (except as pertains to the Special Taxes) or the City or the forfeiture of any of their property. The principal of and interest on the Bonds and premiums upon the redemption thereof, if any, are not a debt of the City, the State of California or any of its political subdivisions within the meaning of any constitutional or statutory limitation or restriction. The Bonds are not a legal or equitable pledge, charge, lien, or encumbrance upon any of the CFD's property, or upon any of its income, receipts or revenues, except the Special Taxes and other amounts in the Special Tax Fund (exclusive of amounts transferred to the Administrative Expense Account) which are, under the terms of this Fiscal Agent Agreement and the Act, set aside for the payment of the Bonds and interest thereon, and neither the members of the Council nor any persons executing the Bonds are liable personally on the Bonds by reason of their issuance. Notwithstanding anything to the contrary contained in this Fiscal Agent Agreement, the CFD shall not be required to advance any money derived from any source of income other than the Special Taxes for the payment of the interest on or the principal of the Bonds, or for the performance of any covenants contained herein. The CFD may, however, advance funds for any such purpose, provided that such funds are derived from a source legally available for such purpose. Section 2.3. Equality of Bonds and Pledge of Special Taxes. Pursuant to the Act and this Fiscal Agent Agreement, the Bonds shall be equally payable from the Special Taxes and other amounts in the Special Tax Fund (exclusive of amounts transferred to the Administrative Expense Account) without priority for number, date of the Bonds, date of sale, date of execution, or date of delivery, and the payment of the interest on and principal of the Bonds and any premiums upon the redemption thereof, shall be exclusively paid from the Special Taxes and other amounts in the Special Tax Fund (exclusive of amounts transferred to the Administrative Expense Account), which are hereby set aside for the payment of the Bonds. Amounts in the Special Tax Fund (exclusive of amounts transferred to the Administrative Expense Account) shall constitute a trust fund held for the benefit of the Owners to be applied to the payment of the interest on and principal of the Bonds and so long as any of the Bonds or interest thereon remain Outstanding shall not be used for any other purpose, except as permitted by this Fiscal Agent Agreement or any Supplemental Fiscal Agent Agreement. Notwithstanding any provision contained in this Fiscal Agent Agreement to the contrary, Special Taxes transferred to the Administrative Expense Account of the Special Tax Fund and the Surplus Fund shall no longer be considered to be pledged to the Bonds, and none of the Surplus Fund or the Administrative Expense Account of the Special Tax Fund shall be construed as a trust fund held for the benefit of the Owners. 45552289.1 10 AGENDA ITEM NO. PAGE OF ,^ Nothing in this Fiscal Agent Agreement or any Supplemental Fiscal Agent Agreement shall preclude, subject to the limitations contained hereunder, the redemption prior to maturity of any Bond subject to call and redemption and payment of said Bond from proceeds of refunding bonds issued under the Act as the same now exists or as hereafter amended, or under any other law of the State of California. Section 2.4. Description of Bonds; Interest Rates. The Bonds shall be issued in fully registered form in denominations of $5,000 or any integral multiple thereof. The Bonds of each issue shall be numbered as desired by the Fiscal Agent. The Bonds shall be designated "CITY OF LAKE ELSINORE COMMUNITY FACILITIES DISTRICT NO. 2005 -1 (SERENITY) SPECIAL TAX BONDS, 2006 SERIES A." The Bonds shall be dated their Delivery Date and shall mature and be payable on September 1 in the years and in the aggregate principal amounts and shall be subject to and shall bear interest at the rates set forth in the table below payable on each Interest Payment Date. Maturity Date (September 1) Principal Amount Interest Rate Interest shall be payable on each Bond from the date established in accordance with Section 2.5 below on each Interest Payment Date thereafter until the principal sum of that Bond has been paid; provided, however, that if at the maturity date of any Bond (or if the same is redeemable and shall be duly called for redemption, then at the date fixed for redemption) funds are available for the payment or redemption thereof in full, in accordance with the terms of this Fiscal Agent Agreement, such Bonds shall then cease to bear interest. Interest due on the Bonds shall be calculated on the basis of a 360 -day year comprised of twelve 30 -day months. Section 2.5. Place and Form of Payment. The Bonds shall be payable both as to principal and interest, and as to any premiums upon the redemption thereof, in lawful money of the United States of America. The principal of the Bonds and any premiums due upon the redemption thereof shall be payable upon presentation and surrender thereof at the Principal Office of the Fiscal Agent, or at the designated office of any successor Fiscal Agent. Interest on any Bond shall be payable from the Interest Payment Date next preceding the date of authentication of that Bond, unless (1) such date of authentication is an Interest Payment Date in which event interest shall be payable from such date of authentication, (ii) the date of authentication is after a Record Date but prior to the immediately succeeding Interest Payment /.� Date, in which event interest shall be payable from the Interest Payment Date immediately succeeding the date of authentication, or (iii) the date of authentication is prior to the close of business on the first Record 45552289.1 11 AGENDA ITEM NO. PACE _a S OFD Date occurring after the issuance of such Bond, in which event interest shall be payable from the dated date of such Bond, as applicable; provided, however, that if at the time of authentication of such Bond, interest is in default, interest on that Bond shall be payable from the last Interest Payment Date to which the interest has been paid or made available for payment or, if no interest has been paid or made available for payment on that Bond, interest on that Bond shall be payable from its dated date. Interest on any Bond shall be paid to the person whose name shall appear in the Bond Register as the Owner of such Bond as of the close of business on the Record Date. Such interest shall be paid by check of the Fiscal Agent mailed on the Interest Payment Date by first class mail, postage prepaid, to such Bondowner at his or her address as it appears on the Bond Register. In addition, upon a request in writing received by the Fiscal Agent on or before the applicable Record Date from an Owner of $1,000,000 or more in principal amount of the Bonds, payment shall be made on the Interest Payment Date by wire transfer in immediately available funds to an account within the United States designated by such Owner. Section 2.6. Form of Bonds. The definitive Bonds may be printed from steel engraved or lithographic plates or may be typewritten. The Bonds and the certificate of authentication shall be substantially in the form attached hereto as Exhibit A, which forms are hereby approved and adopted as the forms of such Bonds and of the certificate of authentication. Notwithstanding any provision in this Fiscal Agent Agreement to the contrary, the CFD may, in its sole discretion, elect to issue the Bonds in book -entry form. Until definitive Bonds shall be prepared, the CFD may cause to be executed and delivered in lieu of such definitive Bonds temporary bonds in typed, printed, lithographed or engraved form and in fully registered form, subject to the same provisions, limitations and conditions as are applicable in the case of definitive Bonds, except that they may be in any denominations authorized by the CFD. Until exchanged for definitive Bonds, any temporary bond shall be entitled and subject to the same benefits and provisions of this Fiscal Agent Agreement as definitive Bonds. If the CFD issues temporary Bonds, it shall execute and furnish definitive Bonds, without unnecessary delay and thereupon any temporary Bond may be surrendered to the Fiscal Agent at its office, without expense to the Owner, in exchange for a definitive Bond of the same issue, maturity, interest rate and principal amount in any authorized denomination. All temporary Bonds so surrendered shall be cancelled by the Fiscal Agent and shall not be reissued. Section 2.7. Execution and Authentication. The Bonds shall be signed on behalf of the CFD by the manual or facsimile signature of the Mayor or the City Manager, in their capacity as officers of the CFD, and attested by the signature of the City Clerk. In case any one or more of the officers who shall have signed or sealed any of the Bonds shall cease to be such officer before the Bonds so signed and sealed have been authenticated and delivered by the Fiscal Agent (including new Bonds delivered pursuant to the provisions hereof with reference to the transfer and exchange of Bonds or to lost, stolen, destroyed or mutilated Bonds), such Bonds shall nevertheless be valid and may be authenticated and delivered as herein provided, and may be issued as if the person who signed or sealed such Bonds had not ceased to hold such office. Only the Bonds as shall bear thereon such certificate of authentication in the form set forth in Exhibit A hereto shall be entitled to any right or benefit under this Fiscal Agent Agreement, and no Bond shall be valid or obligatory for any purpose until such certificate of authentication shall have been duly executed by the Fiscal Agent. Section 2.8. Bond Register. The Fiscal Agent will keep or cause to be kept, at its .office, sufficient books for the registration and transfer of the Bonds which shall upon reasonable prior notice be open to inspection by the CFD during all regular business hours, and, subject to the limitations set forth in Section 2.9 below, upon presentation for such purpose, the Fiscal Agent shall, under such reasonable 45552289.1 12 AGENDA ITEM NO.� PACE a� OF,� 10011- regulations as it may prescribe, register or transfer or cause to be transferred on said Bond Register, Bonds as herein provided. The CFD and the Fiscal Agent may treat the Owner of any Bond whose name appears on the Bond Register as the absolute Owner of that Bond for any and all purposes, and the CFD and the Fiscal Agent shall not be affected by any notice to the contrary. The CFD and the Fiscal Agent may rely on the address of the Bondowner as it appears in the Bond Register for any and all purposes. It shall be the duty of the Bondowner to give written notice to the Fiscal Agent of any change in the Bondowner's address so that the Bond Register may be revised accordingly. Section 2.9. Registration of Exchange or Transfer. Subject to the limitations set forth in the following paragraph, the registration of any Bond may, in accordance with its terms, be transferred upon the Bond Register by the person in whose name it is registered, in person or by his or her duly authorized attorney, upon surrender of such Bond for cancellation at the office of the Fiscal Agent, accompanied by delivery of written instrument of transfer in a form approved by the Fiscal Agent and duly executed by the Bondowner or his or her duly authorized attorney. Bonds may be exchanged at the office of the Fiscal Agent for a like aggregate principal amount of Bonds for other authorized denominations of the same maturity and issue. The Fiscal Agent shall not collect from the Owner any charge for any new Bond issued upon any exchange or transfer, but shall require the Bondowner requesting such exchange or transfer to pay any tax or other governmental charge required to be paid with respect to such exchange or transfer. Whenever any Bonds shall be surrendered for registration of transfer or exchange, the CFD shall execute and the Fiscal Agent shall authenticate and deliver a new Bond or Bonds of the same issue and maturity, for a like aggregate principal amount; provided that the Fiscal Agent shall not be required to register transfers or make exchanges of (i) Bonds for a period of 15 days next preceding any selection of the Bonds to be redeemed, or (ii) any Bonds chosen for redemption. Section 2.10. Mutilated, Lost, Destroyed or Stolen Bonds. If any Bond shall become mutilated, the CFD shall execute, and the Fiscal Agent shall authenticate and deliver, a new Bond of like tenor, date, issue and maturity in exchange and substitution for the Bond so mutilated, but only upon surrender to the Fiscal Agent of the Bond so mutilated. Every mutilated Bond so surrendered to the Fiscal Agent shall be cancelled by the Fiscal Agent pursuant to Section 10.1 hereof. If any Bond shall be lost, destroyed or stolen, evidence of such loss, destruction or theft may be submitted to the Fiscal Agent and, if such evidence is satisfactory to the Fiscal Agent and, if any indemnity satisfactory to the CFD and the Fiscal Agent shall be given, the CFD shall execute and the Fiscal Agent shall authenticate and deliver, a new Bond, as applicable, of like tenor, maturity and issue, numbered and dated as the Fiscal Agent shall determine in lieu of and in substitution for the Bond so lost, destroyed or stolen. Any Bond issued in lieu of any Bond alleged to be mutilated, lost, destroyed or stolen, shall be equally and proportionately entitled to the benefits hereof with all other Bonds issued hereunder. The Fiscal Agent shall not treat both the original Bond and any replacement Bond as being Outstanding for the purpose of determining the principal amount of Bonds which may be executed, authenticated and delivered hereunder or for the purpose of determining any percentage of Bonds Outstanding hereunder, but both the original and replacement Bond shall be treated as one and the same. Notwithstanding any other provision of this Section, in lieu of delivering a new Bond which has been mutilated, lost, destroyed or stolen, and which has matured, the Fiscal Agent may make payment with respect to such Bonds. Section 2.11. Validity of Bonds. The validity of the authorization and issuance of the Bonds shall not be affected in any way by any defect in any proceedings taken by the CFD, or by the invalidity, in whole or in part, of any contracts made by the CFD in connection therewith, and the recital contained 45552289.1 13 AGENDA ITEM N0. 0k PAGE_a�L .OF in the Bonds that the same are issued pursuant to the Act and other applicable laws of the State shall be conclusive evidence of their validity and of the regularity of their issuance. Section 2.12. Book -Entry System. The Bonds shall be initially delivered in the form of a separate single fully registered Bond (which may be typewritten) for each of the maturities of the Bonds. Upon initial delivery, the ownership of each such Bond shall be registered in the registration books kept by the Fiscal Agent in the name of the Nominee as nominee of the Depository. Unless the CFD elects to discontinue the use of the book -entry system, all of the Outstanding Bonds shall be registered in the registration books kept by the Fiscal Agent in the name of the Nominee. With respect to Bonds registered in the registration books kept by the Fiscal Agent in the name of the Nominee, the CFD and the Fiscal Agent shall have no responsibility or obligation to any such Participant or to any Person on behalf of which such a Participant holds an interest in the Bonds. Without limiting the immediately preceding sentence, the CFD and the Fiscal Agent shall have no responsibility or obligation with respect to (i) the accuracy of the records of the Depository, the Nominee, or any Participant with respect to any ownership interest in the Bonds, (ii) the delivery to any Participant or any other Person, other than an Owner as shown in the registration books kept by the Fiscal Agent, of any notice with respect to the Bonds, including any notice of redemption, (iii) the selection by the Depository and its Participants of the beneficial interests in the Bonds to be redeemed in the event the Bonds are redeemed in part, or (iv) the payment to any Participant or any other Person, other than an Owner as shown in the registration books kept by the Fiscal Agent, of any amount with respect to principal of, premium, if any, or interest due with respect to the Bonds. The CFD and the Fiscal Agent may treat and consider the Person in whose name each Bond is registered in the registration books kept by the Fiscal Agent as the holder and absolute owner of such Bond for the purpose of payment of the principal of, premium, if any, and interest on such Bond, for the purpose of giving notices of redemption and other matters with respect to such Bond, for the purpose of registering transfers with respect to such Bond, and for all other purposes whatsoever. The Fiscal Agent shall pay all principal of, premium, if any, and interest due on the Bonds only to or upon the order of the respective Owner, as shown in the registration books kept by the Fiscal Agent, or their respective attorneys duly authorized in writing, and all such payments shall be valid and effective to satisfy and discharge fully the CFD's obligations with respect to payment of the principal, premium, if any, and interest due on the Bonds to the extent of the sum or sums so paid. No Person other than an Owner, as shown in the registration books kept by the Fiscal Agent, shall receive a Bond evidencing the obligation of the CFD to make payments of principal, premium, if any, and interest pursuant to this Fiscal Agent Agreement. Upon delivery by the Depository to the Fiscal Agent and the CFD of written notice to the effect that the Depository has determined to substitute a new nominee in place of the Nominee, and subject to the provisions herein with respect to Record Dates, the word Nominee in this Fiscal Agent Agreement shall refer to such new nominee of the Depository. Section 2.13. Representation Letter. In order to qualify the Bonds which the CFD elects to register in the name of the Nominee for the Depository's book -entry system, an authorized representative of the CFD or the Fiscal Agent is hereby authorized to execute from time to time and deliver to such Depository the Representation Letter. The execution and delivery of the Representation Letter shall not in any way limit the provisions of Section -10.2 or in any other way impose upon the CFD or the Fiscal Agent any obligation whatsoever with respect to persons having interests in the Bonds other than the Owners, as shown on the registration books kept by the Fiscal Agent. The Fiscal Agent agrees to take all action necessary to continuously comply with all representations made by it in the Representation Letter. In addition to the execution and delivery of the Representation Letter, the Mayor and any Authorized Representative of the CFD are hereby authorized to take any other actions, not inconsistent with this Fiscal Agent Agreement, to qualify the Bonds for the Depository's book -entry program. 45552289.1 14 AGENDA ITEM N0. LO PACE 0��OF Section 2.14. Transfers Outside Book -Entry System. In the event (i) the Depository determines not to continue to act as securities depository for the Bonds, or (ii) the CFD determines that the Depository shall no longer so act, then the CFD will discontinue the book -entry system with the Depository. If the CFD fails to identify another qualified securities depository to replace the Depository then the Bonds so designated shall no longer be restricted to being registered in the registration books kept by the Fiscal Agent in the name of the Nominee, but shall be registered in whatever name or names Persons transferring or exchanging Bonds shall designate, in accordance with the provisions of Section 2.9 hereof. Section 2.15. Payments to the Nominee. Notwithstanding any other provisions of this Fiscal Agent Agreement to the contrary, so long as any Bond is registered in the name of the Nominee, all payments with respect to principal, premium, if any, and interest due with respect to such Bond and all notices with respect to such Bond shall be made and given, respectively, as provided in the Representation Letter or as otherwise instructed by the Depository. Section 2.16. Initial Depository and Nominee. The initial Depository under this Article shall be The Depository Trust Company, New York, New York. The initial Nominee shall be Cede & Co., as Nominee of The Depository Trust Company, New York, New York. ARTICLE III CREATION OF FUNDS AND APPLICATION OF SPECIAL TAXES Section 3.1. Creation of Funds; Application of Proceeds. There is hereby created and established and shall be maintained by the Fiscal Agent the following funds and accounts: (1) The Community Facilities District No. 2005 -1 Special Tax Fund (the "Special Tax Fund ") (in which there shall be established and created an Interest Account, a Principal Account, a Redemption Account, a Reserve Account and an Administrative Expense Account); (2) The Community Facilities District No. 2005 -1 Surplus Fund (the "Surplus Fund "); and (3) The Community Facilities District No. 2005 -1 Acquisition and Construction Fund (the "Acquisition and Construction Fund ") (in which there shall be established a Costs of Issuance Account). The amounts on deposit in the foregoing funds, accounts and subaccounts shall be held by the Fiscal Agent and the Fiscal Agent shall invest and disburse the amounts in such funds, accounts and subaccounts in accordance with the provisions of this Article III and shall disburse investment earnings thereon in accordance with the provisions of Section 3.9 hereof. Except as required to be segregated into funds and accounts as described herein, money held by the Fiscal Agent hereunder need not be segregated from other funds except to the extent required by law. At the Written Request of the CFD, the Fiscal Agent may create new funds, accounts or subaccounts, or may create additional accounts and subaccounts within any of the foregoing funds and accounts for the purpose of separately accounting for the proceeds of the Bonds. All proceeds of the sale of the Bonds shall be received by the Fiscal Agent on behalf of the CFD and deposited and transferred as follows: (1) $ shall be transferred to the Costs of Issuance Account of the Acquisition and Construction Fund established hereunder for disbursement in accordance with Section 3.8 below; and 45552289.1 15 AGI =NDA ITEM NO, PAGE c OF aa-S- (2) $ (which is equal to the initial Reserve Requirement) shall be deposited in the Reserve Account to be disbursed in accordance with Section 3.5 below; and (3) $ shall be transferred to the Interest Account of the Special Tax Fund for disbursement in accordance with Section 3.3 below; and (4) $ shall be transferred to the Acquisition and Construction Fund for disbursement in accordance with Section 3.8 below. Section 3.2. Deposits to and Disbursements from Special Tax Fund. The CFD shall, on each date on which it receives Special Taxes transfer the Special Taxes, to the Fiscal Agent for deposit in the Special Tax Fund to be held in accordance with the terms of this Fiscal Agent Agreement. The Fiscal Agent shall transfer the amounts on deposit in the Special Tax Fund on the dates and in the amounts set forth in the following Sections, in the following order of priority, to: (a) The Interest Account of the Special Tax Fund; (b) The Principal Account of the Special Tax Fund; (c) The Redemption Account of the Special Tax Fund; (d) The Reserve Account of the Special Tax Fund; (e) The Administrative Expense Account of the Special Tax Fund; and (f) The Surplus Fund. At the maturity of all of the Bonds and, after all principal and interest then due on the Bonds then Outstanding has been paid or provided for and any amounts owed to the Fiscal Agent have been paid in full, moneys in the Special Tax Fund and any accounts therein shall be transferred to the CFD and may be used by the CFD for any lawful purpose. Section 3.3. Interest Account and Principal Account of the Special Tax Fund. The principal of and interest due on the Bonds until maturity, other than principal due upon redemption, shall be paid by the Fiscal Agent from the Principal Account and the Interest Account of the Special Tax Fund, respectively. For the purpose of assuring that the payment of principal of and interest on the Bonds will be made when due, at least five Business Days prior to each March 1 and September 1, the Fiscal Agent shall make the following transfers from the Special Tax Fund first to the Interest Account and then to the Principal Account; provided, however, that to the extent that deposits have been made in the Interest Account or the Principal Account from the proceeds of the sale of an issue of the Bonds, or otherwise, the transfer from the Special Tax Fund need not be made; and provided, further, that, if amounts in the Special Tax Fund are inadequate to make the foregoing transfers, then any deficiency shall be made up by an immediate transfer from the Reserve Account: (1) To the Interest Account, an amount such that the balance in the Interest Account five Business Days prior to each Interest Payment Date shall be equal to the installment of interest due on the Bonds on said Interest Payment Date and any installment of interest due on a previous Interest Payment Date which remains unpaid. Moneys in the Interest Account shall be used for the payment of interest on the Bonds as the same become due. 45552289.1 16 AGENDA ITEM NO. PAGE -� =OF (2) To the Principal Account, an amount such that the balance in the Principal Account five Business Days prior to September 1 of each year, commencing September 1, 200_ shall at least equal the principal payment due on the Bonds maturing on such September 1 and any principal payment due on a previous September 1 which remains unpaid. Moneys in the Principal Account shall be used for the payment of the principal of such Bonds as the same become due at maturity. Section 3.4. Redemption Account of the Special Tax Fund. (1) On each September 1 on which a Sinking Fund Payment is due, after the deposits have been made to the Interest Account and the Principal Account of the Special Tax Fund as required by Section 3.3 hereof, the Fiscal Agent shall next transfer into the Redemption Account of the Special Tax Fund from the Special Tax Fund the amount needed to make the balance in the Redemption Account five Business Days prior to each September I equal to the Sinking Fund Payment due on any Outstanding Bonds on such September 1; provided, however, that, if amounts in the Special Tax Fund are inadequate to make the foregoing transfers, then any deficiency shall be made up by an immediate transfer from the Reserve Account, if funded, pursuant to Section 3.5 below. Moneys so deposited in the Redemption Account shall be used and applied by the Fiscal Agent to call and redeem Term Bonds in accordance with the Sinking Fund Payment schedule set forth in Section 4.1 hereof. (2) After making the deposits to the Interest Account and the Principal Account of the Special Tax Fund pursuant to Section 3.3 above and to the Redemption Account for Sinking Fund Payments then due pursuant to subparagraph (1) of this Section, and in accordance with the CFD's election to call Bonds for optional redemption as set forth in Section 4.1(1) hereof, the Fiscal Agent shall transfer from the Special Tax Fund and deposit in the Redemption Account moneys available for the purpose and sufficient to pay the interest, the principal and the premiums, if any, payable on the Bonds called for optional redemption; provided, however, that amounts in the Special Tax Fund (exclusive of amounts transferred to the Administrative Expense Account) may be applied to optionally redeem Bonds only if immediately following such redemption the amount in the Reserve Account will equal the Reserve Requirement. (3) All prepayments of Special Taxes shall be deposited in the Redemption Account to be used to redeem Bonds on the next date for which notice of redemption can timely be given. (4) Moneys set aside in the Redemption Account shall be used solely for the purpose of redeeming Bonds and shall be applied on or after the redemption date to the payment of the principal of and premium, if any, on the Bonds to be redeemed upon presentation and surrender of such Bonds and in the case of an optional redemption to pay the interest thereon; provided, however, that in lieu or partially in lieu of such call and redemption, moneys deposited in the Redemption Account as set forth above may be used to purchase Outstanding Bonds in the manner hereinafter provided. Purchases of Outstanding Bonds may be made by the CFD at public or private sale as and when and at such prices as the CFD may in its discretion determine but only at prices (including brokerage or other expenses) not more than par plus accrued interest, plus, in the case of moneys set aside for an optional redemption, the premium applicable at the next following call date according to the premium schedule established pursuant to Section 4.1(1) hereof. Any accrued interest payable upon the purchase of Bonds may be paid from the amount reserved in the Interest Account of the Special Tax Fund for the payment of interest on the next following Interest Payment Date. Section 3.5. Reserve Account of the Special Tax Fund. There shall be maintained in the Reserve Account of the Special Tax Fund an amount equal to the Reserve Requirement. The amounts in the Reserve Account shall be applied as follows: 45552289.1 17 AGENDA t7EM N0. vl PACE_ ._OF (1) Moneys in the Reserve Account shall be used solely for the purpose of paying the principal of, including Sinking Fund Payments, and interest on any Bonds when due in the event that the moneys in the Interest Account and the Principal Account of the Special Tax Fund are insufficient `•�' therefor or moneys in the Redemption Account of the Special Tax Fund are insufficient to make a Sinking Fund Payment when due. If the amounts in the Interest Account, the Principal Account or the Redemption Account of the Special Tax Fund are insufficient to pay the principal of, including Sinking Fund Payments, or interest on any Bonds when due, the Fiscal Agent shall withdraw from the Reserve Account for deposit in the Interest Account, the Principal Account or the Redemption Account of the Special Tax Fund, as applicable, moneys necessary for such purposes. (2) Whenever moneys are withdrawn from the Reserve Account, after making the required transfers referred to in Sections 3.4 and 3.5 above, the Fiscal Agent shall transfer to the Reserve Account from available moneys in the Special Tax Fund, or from any other legally available funds which the CFD elects to apply to such purpose, the amount needed to restore the amount of such Reserve Account to the Reserve Requirement. Moneys in the Special Tax Fund shall be deemed available for transfer to the Reserve Account only if the Fiscal Agent determines that such amounts will not be needed to make the deposits required to be made to the Interest Account, the Principal Account or the Redemption Account of the Special Tax Fund. If amounts in the Special Tax Fund or otherwise transferred to replenish the Reserve Account are inadequate to restore the Reserve Account to the Reserve Requirement, then the CFD shall include the amount necessary fully to restore the Reserve Account to the Reserve Requirement in the next annual Special Tax levy to the extent of the maximum permitted Special Tax rates. (3) In connection with any redemption of the Bonds, or a partial defeasance of the Bonds in accordance with Section 9.1 hereof, amounts in the Reserve Account may be applied to such redemption or partial defeasance so long as the amount on deposit in the Reserve Account following such redemption or partial defeasance equals the Reserve Requirement. To the extent that the Reserve Account is at the Reserve Requirement as of the first day of the final Bond Year for the Bonds, amounts in the Reserve .�► Account may be applied to pay the principal of and interest due on the Bonds in the final Bond Year for such issue. Moneys in the Reserve Account in excess of the Reserve Requirement not transferred in accordance with the preceding provisions of this paragraph shall be withdrawn from the Reserve Account on the fifth Business Day before each March 1 and September I and transferred to the Acquisition and Construction Fund until the Fiscal Agent receives a Certificate of Authorized Representative of the CFD that all Project Costs have been funded and, thereafter, to the Interest Account of the Special Tax Fund. Section 3.6. Administrative Expense Account of the Special Tax Fund. The Fiscal Agent shall transfer from the Special Tax Fund and deposit in the Administrative Expense Account of the Special Tax Fund amounts necessary to make timely payment of Administrative Expenses and shall be disbursed by the Fiscal Agent to pay Administrative Expenses, all as instructed by the CFD pursuant to a Written Request of the CFD. Moneys in the Administrative Expense Account of the Special Tax Fund may be invested in any Authorized Investments as directed by an Authorized Representative of the CFD. Section 3.7. Surplus Fund. After making the transfers required by Sections 3.3, 3.4, 3.5, and 3.6 hereof, as soon as practicable after each September 1, the Fiscal Agent shall transfer all remaining amounts in the Special Tax Fund to the Surplus Fund, other than amounts in the Special Tax Fund which the CFD directs the Fiscal Agent by Written Request of the CFD to retain because the CFD has included such funds as being available in the Special Tax Fund in calculating the amount of the levy of Special Taxes for such Fiscal Year pursuant to Section 5.2(2) hereof. Moneys deposited in the Surplus Fund shall be transferred by the Fiscal Agent at the written direction of the CFD to the Administrative Expense Account of the Special Tax Fund to pay Administrative Expenses to the extent that the amounts on deposit in the Administrative Expense Account of the Special Tax Fund are insufficient to pay 45552289.1 18 AGENDA ITEM N0. PAGE_,1p OF n Administrative Expenses or, upon the Written Request of the CFD, may be disbursed to the CFD to be expended for any other lawful purpose of the CFD. The amounts in the Surplus Fund are not pledged to the repayment of the Bonds. In the event that the CFD reasonably expects to use any portion of the moneys in the Surplus Fund to pay debt service on any Outstanding Bonds, upon the written direction of the CFD, the Fiscal Agent will segregate such amount into a separate subaccount and the moneys on deposit in such subaccount of the Surplus Fund shall be invested in Authorized Investments the interest on which is excludable from gross income under Section 103 of the Code (other than bonds the interest on which is a tax preference item for purposes of computing the alternative minimum tax of individuals and corporations under the Code) or in Authorized Investments at a yield not in excess of the yield on the issue of Bonds to which such amounts are to be applied, unless, in the opinion of Bond Counsel, investment at a higher yield will not adversely affect the exclusion from gross income for federal income tax purposes of interest on the Bonds which were issued on a tax - exempt basis for federal income tax purposes. Section 3.8. Acquisition and Construction Fund. (1) The moneys in the Acquisition and Construction Fund shall be applied exclusively to pay the Project Costs and Costs of Issuance. Amounts for Project Costs and Costs of Issuance shall be disbursed by the Fiscal Agent from the account in the Acquisition and Construction Fund designated therefor in a requisition signed by an Authorized Representative of the CFD, substantially in the form of Exhibit B hereto, which must be submitted in connection with each requested disbursement. (2) Upon receipt of a Certificate of Authorized Representative of the CFD that all or a specified portion of the amount remaining in the Acquisition and Construction Fund is no longer needed oo� to pay Project Costs or Costs of Issuance, the Fiscal Agent shall redeem Bonds pursuant to Section 4.1(4) hereof, or transfer all or such specified portion of the moneys remaining on deposit in one or more of the accounts in the Acquisition and Construction Fund to the Special Tax Fund, or to the Surplus Fund if requested in the Certificate and if there shall have been delivered to the Fiscal Agent with such Certificate an opinion of Bond Counsel to the effect that such transfer to the Surplus Fund will not adversely affect the exclusion from gross income for federal income tax purposes of interest on the Bonds which were issued on a tax - exempt basis for federal income tax purposes. Upon transfer of the final amounts on deposit in the Acquisition and Construction Fund or either account in such fund, such accounts and fund shall be closed. Notwithstanding the foregoing, any amount remaining in the Costs of Issuance Account of the Acquisition and Construction Fund on the date 180 days from the Delivery Date shall be transferred to the Acquisition and Construction Fund and such account shall be closed. Section 3.9. Investments. Moneys held in any of the funds and accounts under this Fiscal Agent Agreement shall be invested at the Written Request of the CFD in accordance with the limitations set forth below only in Authorized Investments which shall be deemed at all times to be a part of such funds and accounts. Any loss resulting from such Authorized Investments shall be credited or charged to the fund or account from which such investment was made, and any investment earnings on a fund or account shall be applied as follows: (i) investment earnings on all amounts deposited in the Special Tax Fund (exclusive of amounts transferred to the Reserve Account), Surplus Fund, Acquisition and Construction Fund and each Account therein shall be deposited in those respective funds and accounts, and (ii) all other investment earnings shall be deposited in the Interest Account of the Special Tax Fund; provided, however, to the extent moneys in the Reserve Account exceed the Reserve Requirement, such excess amounts shall be deposited and transferred pursuant to Section 3.5(3) hereof. Moneys in the funds and accounts held under this Fiscal Agent Agreement may be invested by the Fiscal Agent at the Written Request of the CFD received at least 2 Business Days prior to the investment date, from time to time, in Authorized Investments subject to the following restrictions: 45552289.1 19 AGENDA ITEM NO._L1_! ___ P/�GE, L OF (1) Moneys in the Interest Account, the Principal Account and the Redemption Account of the Special Tax Fund shall be invested only in Authorized Investments which will by their terms mature, or in the case of an Investment Agreement are available for withdrawal without penalty, on such dates so as to ensure the payment of principal of, premium, if any, and interest on the Bonds as the same become due. (2) Moneys in the Acquisition and Construction Fund shall be invested in Authorized Investments which will by their terms mature, or in the case of an Investment Agreement are available without penalty, as close as practicable to the date the CFD estimates the moneys represented by the particular investment will be needed for withdrawal from the Acquisition and Construction Fund. Notwithstanding anything herein to the contrary, amounts in the Acquisition and Construction Fund on the Delivery Date for the Bonds shall not be invested at yields greater than those set forth in the Tax Certificate. (3) One -half of the amount in the Reserve Account of the Special Tax Fund may be invested only in Authorized Investments which mature not later than two years from their date of purchase by the Fiscal Agent, and one -half of the amount in the Reserve Account may be invested only in Authorized Investments which mature not more than three years from the date of purchase by the Fiscal Agent; provided that such amounts may be invested in an Investment Agreement to the final maturity of the Bonds so long as such amounts may be withdrawn at any time, without penalty, for application in accordance with Section 3.5 hereof; and provided that no such Authorized Investment of amounts in the Reserve Account allocable to the Bonds shall mature later than the final maturity date of the Bonds. (4) hi the absence of Written Request of the CFD providing investment directions, the Fiscal Agent shall invest solely in Authorized Investments specified in clause (4) of the definition thereof. The Fiscal Agent shall sell at the best price obtainable, or present for redemption, any Authorized Investment whenever it may be necessary to do so in order to provide moneys to meet any payment or transfer to such Funds and Accounts or from such Funds and Accounts. For the purpose of determining at any given time the balance in any such Funds and Accounts, any such investments constituting a part of such Funds and Accounts shall be valued at their cost, except that amounts in the Reserve Account shall be valued at the fair market value thereof and marked to market at least annually. Notwithstanding anything herein to the contrary, the Fiscal Agent shall not be responsible for any loss from investments, sales or transfers undertaken in accordance with the provisions of this Fiscal Agent Agreement. The Fiscal Agent or an affiliate may act as principal or agent in connection with the acquisition or disposition of any Authorized Investments and shall be entitled to its customary fees therefor. Any Authorized Investments that are registrable securities shall be registered in the name of the Fiscal Agent. The Fiscal Agent is hereby authorized, in making or disposing of any investment permitted by this Section, to deal with itself (in its individual capacity) or with any one or more of its affiliates, whether it or such affiliate is acting as an agent of the Fiscal Agent or for any third person or dealing as principal for its own account. ARTICLE IV REDEMPTION OF BONDS Section 4.1. Redemption of Bonds. (1) Optional Redemption. The Bonds are subject to redemption prior to maturity at the option of the CFD on any date on or after September 1, 2012, as a whole or in part, by lot, from any available source of funds at the following redemption prices (expressed as a percentage of the principal amount of Bonds to be), together with accrued interest thereon to the date fixed for redemption: lft / 45552289.1 20 AGENDA ITEM N0. PA,GE_3�1_OF Redemption Dates Redemption Prices September 1, 2012 through August 31, 2013 102.0% September 1, 2013 through August 31, 2014 101.0 September 1, 2014 and thereafter 100.0 (2) Special Mandatory Redemption from Special Tax Prepayments. The Bonds are subject to mandatory redemption prior to maturity on any date, in part, in a manner determined by the District from prepayments of Special Taxes at the following redemption prices (expressed as a percentage of the principal amount of Bonds to be redeemed), together with accrued interest thereon to the date fixed for redemption: Redemption Dates Redemption Prices March 1, 2006 through August 31, 2010 103.0% September 1, 2010 through August 31, 2012 102.5 September 1, 2012 and thereafter As provided for in optional redemption In connection with such redemption, the CFD may also apply amounts in the Reserve Account which will be in excess of the Reserve Requirement as a result of such Special Tax prepayment to redeem Bonds as set forth above. (3) Special Mandatory Redemption. The Bonds are subject to special mandatory redemption on any date from unused proceeds of the Bonds after completion or abandonment of the improvements to be financed with such proceeds, from the deposit of fees with the CFD by a public agency which has accepted facilities serving the CFD and from insurance or condemnation proceeds or other mandatory redemption, without premium, plus accrued interest to the redemption date, all as determined by the CFD. (4) Mandatory Sinking Fund Redemption. The Bonds maturing on September 1, and September 1; are subject to mandatory redemption, in part by lot, on September 1 in each year commencing September 1, with respect to the Bonds maturing on September 1, , and commencing September 1, , with respect to the Bonds maturing on September 1, , from the Sinking Fund Payments that have been deposited into the Redemption Account at a redemption price equal to the principal amount thereof to be redeemed, without premium, plus accrued interest thereon to the date of redemption as set forth in the following schedule; provided, however, that (i) in lieu of redemption thereof, the Bonds may be purchased by the CFD and tendered to the Fiscal Agent, and (ii) if some but not all of the Bonds have been redeemed pursuant to Section 4.1(1) through (3) above, the total amount of all future sinking payments will be reduced by the aggregate principal amount of the Bonds so redeemed, to be allocated among such sinking payments on a pro rata basis (as nearly as practicable) in integral multiples of $5,000 as determined by the CFD. 45552289.1 21 AGENDA ITEM N0. Liq PACE S OF PA. — Bonds Maturing on September 1, Redemption Date S"60 (September 1) Principal Amount (maturity) Bonds Maturing on September 1, Redemption Date (September 1) Principal Amount (maturity) Section 4.2. Selection of Bonds for Redemption. If less than all of the Bonds Outstanding are to be redeemed, the portion of any Bond of a denomination of more than $5,000 to be redeemed shall be in the principal amount of $5,000 or an integral multiple thereof. In selecting portions of such Bonds for redemption, the Fiscal Agent shall treat such Bonds as representing that number of Bonds of $5,000 denominations which is obtained by dividing the principal amount of such Bonds to be redeemed in part by $5,000. The Fiscal Agent shall promptly notify the CFD in writing of the Bonds, or portions thereof, selected for redemption. Section 4.3. Notice of Redemption. When Bonds are due for redemption under Section 4.1 above, the Fiscal Agent shall give notice, in the name of the CFD, of the redemption of such Bonds; provided, however, that a notice of a redemption to be made from other than from Sinking Fund Payments shall be conditioned on there being on deposit on the redemption date sufficient money to pay the redemption price of the Bonds to be redeemed. Such notice of redemption shall (a) specify the CUSIP numbers (if any), the bond numbers and the maturity date or dates of the Bonds selected for redemption, except that where all of the Bonds of a maturity are subject to redemption, or all the Bonds of one maturity, are to be redeemed, the bond numbers of such issue need not be specified; (b) state the date fixed for redemption and surrender of the Bonds to be redeemed; (c) state the redemption price; (d) state the place or places where the Bonds are to be redeemed; (e) in the case of Bonds to be redeemed only in part, state the portion of such Bond which is to be redeemed; (f) state the date of issue of the Bonds as originally issued; (g) state the rate of interest borne by each Bond being redeemed; and (h) state any other descriptive information needed to identify accurately the Bonds being redeemed as shall be specified by the Fiscal Agent. Such notice shall further state that on the date fixed for redemption, there shall become due and payable on each Bond, or portion thereof called for redemption, the principal thereof, together with any premium, and interest accrued to the redemption date, and that from and after such date, interest 45552289.1 22 AGENDA ITEM N0. PAGE 3_OF thereon shall cease to accrue and be payable. At least 30 days but no more than 60 days prior to the redemption date, the Fiscal Agent shall mail a copy of such notice, by first class mail, postage prepaid, to the respective Owners thereof at their addresses appearing on the Bond Register. The actual receipt by the Owner of any Bond or the original purchaser of any Bond of notice of such redemption shall not be a condition precedent to redemption, and neither the failure to receive nor any defect in such notice shall affect the validity of the proceedings for the redemption of such Bonds, or the cessation of interest on the redemption date. A certificate by the Fiscal Agent that notice of such redemption has been given as herein provided shall be conclusive as against all parties and the Owner shall not be entitled to show that he or she failed to receive notice of such redemption. In addition to the foregoing notice, further notice shall be given by the Fiscal Agent as set out below, but no defect in said further notice nor any failure to give all or any portion of such further notice shall in any manner defeat the effectiveness of a call for redemption if notice thereof is given as above prescribed. Each further notice of redemption shall be sent on or before the date notice of redemption is mailed to the Bondowners pursuant to the first paragraph of this Section by telecopy or registered or certified mail or overnight delivery service to the registered securities depositories then in the business of holding substantial amounts of obligations of types comprising the Bonds as shall be specified by the CFD to the Fiscal Agent and to the national information services that disseminate notice of redemption of obligations such as the Bonds. Upon the payment of the redemption price of any Bonds being redeemed, each check or other transfer of funds issued for such purpose shall to the extent practicable bear the CUSIP number identifying, by issue and maturity, the Bonds being redeemed with the proceeds of such check or other transfer. Section 4.4. Partial Redemption of Bonds. Upon surrender of any Bond to be redeemed in part only, the CFD shall execute and the Fiscal Agent shall authenticate and deliver to the Bondowner, at the expense of the CFD, a new Bond or Bonds of authorized denominations equal in aggregate principal amount to the unredeemed portion of the Bonds surrendered, with the same interest rate and the same maturity. Section 4.5. Effect of Notice and Availability of Redemption Money. Notice of redemption having been duly given, as provided in Section 4.3 hereof, and the amount necessary for the redemption having been made available for that purpose and being available therefor on the date fixed for such redemption: (1) The Bonds, or portions thereof, designated for redemption shall, on the date fixed for redemption, become due and payable at the redemption price thereof as provided in this Fiscal Agent Agreement, anything in this Fiscal Agent Agreement or in the Bonds to the contrary notwithstanding; (2) Upon presentation and surrender thereof at the office of the Fiscal Agent, the redemption price of such Bonds shall be paid to the Owners thereof, (3) As of the redemption date the Bonds, or portions thereof so designated for. redemption shall be deemed to be no longer Outstanding and such Bonds, or portions thereof, shall cease to bear further interest; and (4) As of the date fixed for redemption no Owner of any of the Bonds, or portions thereof so designated for redemption, shall be entitled to any of the benefits of this Fiscal Agent Agreement or any 4 AGENDA ITEM N0._ 5552289.1 23 PAGEJ�� OF_g rte' Supplemental Fiscal Agent Agreement, or to any other rights, except with respect to payment of the redemption price and interest accrued to the redemption date from the amounts so made available. ARTICLE V COVENANTS AND WARRANTY Section 5.1. Warranty. The CFD shall preserve and protect the security pledged hereunder to the Bonds against all claims and demands of all persons. Section 5.2. Covenants. So long as any of the Bonds issued hereunder are Outstanding and unpaid, the CFD makes the following covenants with the Bondowners under the provisions of the Act and this Fiscal Agent Agreement (to be performed by the CFD or its proper officers, agents or employees), which covenants are necessary and desirable to secure the Bonds and tend to make them more marketable; provided, however, that said covenants do not require the CFD to expend any funds or moneys other than the Special Taxes and other amounts deposited to the Special Tax Fund: (1) Punctual Payment; Against Encumbrances. The CFD hereby covenants that it will receive all Special Taxes in trust and will immediately deposit such amounts with the Fiscal Agent, and the CFD shall have no beneficial right or interest in the'amounts so deposited except as provided by this Fiscal Agent Agreement. All such Special Taxes shall be disbursed, allocated and applied solely to the uses and purposes set forth herein, and shall be accounted for separately and apart from all other money, funds, accounts or other resources of the CFD. The CFD covenants that it will duly and punctually pay or cause to be paid the principal of and interest on every Bond issued hereunder, together with the premium, if any, thereon on the date, at the place and in the manner set forth in the Bonds and in accordance with this Fiscal Agent Agreement to the extent that Special Taxes are available therefor, and that the payments into the Funds and Accounts created hereunder will be made, all in strict conformity with the terms of the Bonds and this Fiscal Agent Agreement, and that it will faithfully observe and perform all of the conditions, covenants and requirements of this Fiscal Agent Agreement and all Supplemental Fiscal Agent Agreements and of the Bonds issued hereunder. The CFD will not mortgage or otherwise encumber, pledge or place any charge upon any of the Special Taxes except as provided in this Fiscal Agent Agreement, and will not issue any obligation or security having a lien or charge upon the Special Taxes superior to or on a parity with the Bonds. Nothing herein shall prevent the CFD from issuing or incurring indebtedness which is payable from a pledge of Special Taxes which is subordinate in all respects to the pledge of Special Taxes to repay the Bonds. (2) Lew of Special Tax. Beginning in Fiscal Year 2006 -07 and so long as any Bonds issued under this Fiscal Agent Agreement are Outstanding, the CFD hereby covenants to levy the Special Tax in an amount sufficient, together with other amounts on deposit in the Special Tax Fund and the Surplus Fund and available for such purpose, to pay (1) the principal of and interest on the Bonds when due, (2) the Administrative Expenses, and (3) any amounts required to replenish the Reserve Account of the Special Tax Fund to the Reserve Requirement. (3) Commence Foreclosure Proceedings. The CFD hereby covenants for the benefit of the Owners of the Bonds that it will determine or cause to be determined, no later than March 1 and August 1 of each year, whether or not any owner of the property within the CFD are delinquent in the payment of Special Taxes and, if such delinquencies exist, the CFD will order and cause to be commenced no later r../ 45552289.1 24 AGENDA ITEM NO. PAGE 1% OF,� than April 15 (with respect to the March I determination date) or September I (with respect to the August 1 determination date), and thereafter diligently prosecute, an action in the superior court to foreclose the lien of any Special Taxes or installment thereof not paid when due, provided, however, that the CFD shall not be required to order the commencement of foreclosure proceedings if (i) the total Special Tax delinquency in the CFD for such Fiscal Year is less than five percent (5 %) of the total Special Tax levied in such Fiscal Year, and (ii) the CFD shall have established from any source of lawfully available funds (other than Special Taxes) an escrow fund to provide for the payment of principal of and interest on the Bonds. Notwithstanding the foregoing, if the CFD determines that any single property owner in the CFD is delinquent in excess of ten thousand dollars ($10,000) in the payment of the Special Tax, then it will diligently institute, prosecute and pursue foreclosure proceedings against such property owner. Notwithstanding any provision of the Act or other law of the State to the contrary, in connection with any foreclosure related to delinquent Special Taxes: (a) The CFD or the Fiscal Agent, is hereby expressly authorized to credit bid at any foreclosure sale, without any requirement that funds be set aside in the amount so credit bid, in the amount specified in Section 53356.5 of the Act, or such less amount as determined under clause (b) below or otherwise under Section 53356.6 of the Act. . (b) The CFD may permit, in its sole and absolute discretion, property with delinquent Special Tax payments to be sold for less than the amount specified in Section 53356.5 of the Act, if it determines that such sale is in the interest of the Bond Owners. The Bond Owners, by their acceptance of the Bonds, hereby consent to such sale for such lesser amounts (as such consent is described in Section 53356.6 of the Act), and hereby release the CFD and the City, and their respective officers and agents from any liability in connection therewith. If such sale for lesser amounts would result in less than full payment of principal of and interest on the Bonds, the CFD will use best efforts to seek approval of the Bond Owners. (c) The CFD is hereby expressly authorized to use amounts in the Special Tax Fund to pay costs of foreclosure of delinquent Special Taxes. (d) The CFD may forgive all or any portion of the Special Taxes levied or to be levied on any parcel in the CFD so long as the CFD determines that such forgiveness is not expected to adversely affect its obligation to pay principal of and interest on the Bonds as such payments become due and payable. (4) Payment of Claims. The CFD will pay and discharge any and all lawful claims for labor, materials or supplies which, if unpaid, might become a lien or charge upon the Special Taxes or; other funds in the Special Tax Fund (exclusive of amounts transferred to the Administrative Expense Account), or which might impair the security of the Bonds then Outstanding; provided that nothing herein contained shall require the CFD to make any such payments so long as the CFD in good faith shall contest the validity of any such claims. (5) Books and Accounts. The CFD will keep proper books of records and accounts, separate from all other records and accounts of the CFD, in which complete and correct entries shall be made of all transactions relating to the levy of the Special Tax and the deposits to the Special Tax Fund. Such books of records and accounts shall at all times during business hours be subject to.the inspection of the Fiscal Agent or of the Owners of the Bonds then Outstanding or their representatives authorized in writing. 45552289.1 25 AGENDA ITEM NO.-LCI-- PAGE ;�[ - OFaz_s_ (6) Tax Covenants. (a) Special Definitions. When used in this subsection, the following terms have the "NO* following meanings: "Code" means the Internal Revenue Code of 1986. "Computation Date" has the meaning set forth in section 1.148 -1(b) of the Tax Regulations. "Gross Proceeds" means any proceeds as defined in section 1.148 -1(b) of the Tax Regulations (referring to sales, investment and transferred proceeds), and any replacement proceeds as defined in section 1.148 -1(c) of the Tax Regulations, of the Bonds. "Investment" has the meaning set forth in section 1.148 -1(b) of the Tax Regulations. "Nonpurpose Investment" means any investment property, as defined in section 148(b) of the Code, in which Gross Proceeds of the Bonds are invested and that is not acquired to carry out the governmental purposes of that series of Bonds. "Rebate Amount," has the meaning set forth in section 1.148 -1(b) of the Tax Regulations. "Tax Regulations" means the United States Treasury Regulations promulgated pursuant to sections 103 and 141 through 150 of the Code, or section 103 of the 1954 Code, as applicable. "Yield" of any Investment has the meaning set forth in section 1.148 -5 of the Tax Regulations; and of any issue of governmental obligations has the meaning set forth in section 1.148 -4 of the Tax Regulations. (b) Not to Cause Interest to Become Taxable. The CFD covenants that it shall take all actions necessary in order that interest on the Bonds be and remain excluded pursuant to section 103(a) of the Code from the gross income of the owners thereof for federal income tax purposes, and that it shall not use or invest, and shall not permit the use or investment of, and shall not omit to use or invest Gross Proceeds or any other amounts (or any property the acquisition, construction or improvement of which is to be financed directly or indirectly with Gross Proceeds) in a manner that if made or omitted, respectively, could cause the interest on any Bond to fail to be excluded pursuant to section 103(a) of the Code from the gross income of the owner thereof for federal income tax purposes. Without limiting the generality of the foregoing, unless and until the Fiscal Agent receives a written opinion of Bond Counsel to the effect that compliance with such covenant is not necessary to, or that failure to comply with such covenant will not adversely affect, the exclusion of the interest on any Bond from the gross income of the owner thereof for federal income tax purposes, the CFD shall comply with each of the specific covenants in this subsection. (c) Private Use and Private Payments. Except as would not cause any Bond to become a "private activity bond" within the meaning of section 141 of the Code and the Tax Regulations, the CFD shall take all actions necessary to assure that the CFD at all times prior to the final cancellation of the last of the Bonds to be retired: (i) exclusively owns, operates and possesses all property the acquisition, construction or improvement of which is to be financed or refinanced directly or indirectly with Gross Proceeds of the Bonds and not use or permit the use of such Gross 45552289.1 26 AGENDA ITEM NO. —q9 PAGE_ OF Proceeds (including through any contractual arrangement with terms different than those applicable to the general public) or any property acquired, constructed or improved with such Gross Proceeds in any activity carried on by any person or entity (including the United States or any agency, department and instrumentality thereof) other than a state or local government, unless such use is solely as a member of the general public; and (ii) does not directly or indirectly impose or accept any charge or other payment by any person or entity (other than a state or local government) who is treated as using any Gross Proceeds of the Bonds or any property the acquisition, construction or improvement of which is to be financed or refinanced directly or indirectly with such Gross Proceeds. (d) No Private Loan. Except as would not cause any Bond to become a "private activity bond" within the meaning of section 141 of the Code and the Tax Regulations and rulings thereunder, the CFD shall not use or permit the use of Gross Proceeds of the Bonds to make or finance loans to any person or entity other than a state or local government. For purposes of the foregoing covenant, such Gross Proceeds are considered to be "loaned" to a person or entity if: (i) property acquired, constructed or improved with such Gross Proceeds is sold or leased to such person or entity in a transaction that creates a debt for federal income tax purposes; (ii) capacity in or service from such property is committed to such person or entity under a take -or -pay, output or similar contract or arrangement; or (iii) indirect benefits of such Gross Proceeds, or burdens and benefits of ownership of any property acquired, constructed or improved with such Gross Proceeds, are otherwise transferred in a transaction that is the economic equivalent of a loan. (e) Not to Invest at Higher Yield. Except as would not cause the Bonds to become r "arbitrage bonds" within the meaning of section 148 of the Code and the Tax Regulations and rulings thereunder, the CFD shall not (and shall not permit any person to), at any time prior to the final cancellation of the last Bond to be retired, directly or indirectly invest Gross Proceeds in any Investment, if as a result of such investment the Yield of any. Investment acquired with Gross Proceeds, whether then held or previously disposed of, would materially exceed the Yield of the Bonds within the meaning of said section 148. (f) Not Federally Guaranteed. Except to the extent permitted by section 149(b) of the Code and the Tax Regulations and rulings thereunder, the CFD shall take or omit to take (and shall not permit any person to take or omit to take) any action that would cause any Bond to be "federally guaranteed" within the meaning of section 149(b) of the Code and the Tax Regulations and rulings thereunder. (g) Information Report. The CFD shall timely file any information required by section 149(e) of the Code with respect to Bonds with the Secretary of the Treasury on Form 8038 -G or such other form and in such place as the Secretary may prescribe. (h) Rebate of Arbitrage Profits. Except to the extent otherwise provided in section 148(f) of the Code and the Tax Regulations: (i) The CFD shall account for all Gross Proceeds (including all receipts, expenditures and investments thereof) on its books of account separately and apart from all other funds (and receipts, expenditures and investments thereof) and shall retain all records of accounting for at least six years after the day on which the last Bond is 141� discharged. However, to the extent permitted by law, the CFD may commingle (and may allow the CFD to commingle) Gross Proceeds of Bonds with its other monies, provided 45552289.1 27 AGENDA ITEM N0. LPI PAGE 'I 1 0 F that it separately accounts for each receipt and expenditure of Gross Proceeds and the obligations acquired therewith. (ii) Not less frequently than each Computation Date, the CFD shall calculate the Rebate Amount in accordance with rules set forth in section 148(f) of the Code and the Tax Regulations and rulings thereunder. The CFD shall maintain a copy of the calculation with its official transcript of proceedings relating to the issuance of the Bonds until six years after the final Computation Date. (iii) In order to assure the excludability pursuant to 3(a) of the Code of the interest on the Bonds from the gross income of the owners thereof for federal income tax purposes, the CFD shall pay to the United States the amount that when added to the future value of previous rebate payments made for the Bonds equals (i) in the case of the Final Computation Date as defined in section 1.148- 3(e)(2) of the Tax Regulations, one hundred percent (100 %) of the Rebate Amount on such date; and (ii) in the case of any other Computation Date, ninety percent (90 %) of the Rebate Amount on such date. In all cases, such rebate payments shall be made by the CFD at the times and in the amounts as are or may be required by section 148(f) of the Code and the Tax Regulations and rulings thereunder, and shall be accompanied by Form 8038 -T or such other forms and information as is or may be required by section 148(f) of the Code and the Tax Regulations and rulings thereunder for execution and filing by the CFD. Notwithstanding the foregoing, and provided that the CFD takes all steps available to it to cause the provision of such amounts, the monetary obligation of the CFD under this paragraph (3) shall be limited to amounts provided to it for such purpose by the CFD. (i) Not to Divert Arbitrage Profits. Except to the extent permitted by section 148 of the Code and the Tax Regulations and rulings thereunder, the CFD shall not and shall not permit any person to, at any time prior to the final cancellation of the last of the Bonds to be retired, enter into any transaction that reduces the amount required to be paid to the United States pursuant to paragraph (h) of this subsection because such transaction results in a smaller profit or a larger loss than would have resulted if the transaction had been at arm's length and had the Yields on the Bonds not been relevant to either party. 6) Bonds Not Hedge Bonds. (i) The CFD represents that none of the Bonds is or will become a "hedge bond" within the meaning of section 149(g) of the Code. (ii) Without limitation of paragraph (i) above: (A) the CFD reasonably expects that at least 85% of the spendable proceeds of the Bonds will be expended within the three -year period commencing on the date of issuance of the Bonds; and (B) no more than 50% of the proceeds of the Bonds will be invested in Nonpurpose Investments having a substantially guaranteed yield for a period of four years or more. (k) Elections. The CFD hereby directs and authorizes any CFD Authorized Representative to make elections permitted or required pursuant to the provisions of the Code or the Tax Regulations, as such representative (after consultation with Bond Counsel) deems necessary or appropriate in connection with the Bonds, in the Certificate as to Tax Exemption or similar or other appropriate certificate, form or document. 45552289.1 28 AGENDA ITEM NO. �Aq__ PACE Ll a.-OF a ;I .E; AO-- (1) Closing Certificate. The CFD agrees to execute and deliver in connection with the issuance of the Bonds a Tax Certificate as to Arbitrage and the Provisions of Sections 103 and 141 -150 of the Internal Revenue Code of 1986, or similar document containing additional representations and covenants pertaining to the exclusion of interest on the Bonds from the gross income of the owners thereof for federal income tax purposes, which representations and covenants are incorporated as though expressly set forth herein. (7) Reduction of Maximum Special Taxes. The CFD hereby finds and determines that, historically, delinquencies in the payment of special taxes authorized pursuant to the Act in community facilities districts in Southern California have from time to time been at levels requiring the levy of special taxes at the maximum authorized rates in order to make timely payment of principal of and interest on the outstanding indebtedness of such community facilities districts. For this reason, the CFD hereby determines that a reduction in the maximum Special Tax rates authorized to be levied on parcels in the CFD below the levels provided in this Section 5.2(7) would interfere with the timely retirement of the Bonds. The CFD determines it to be necessary in order to preserve the security for the Bonds to covenant, and, to the maximum extent that the law permits it to do so, the CFD hereby does covenant, that it shall not initiate proceedings to reduce the maximum Special Tax rates for the CFD, unless, in connection therewith, (i) the CFD receives a certificate from one or more Independent Financial Consultants which, when taken together, certify that, on the basis of the parcels of land and improvements existing in the CFD as of the July 1 preceding the reduction, the maximum amount of the Special Tax which may be levied on then existing Developed Property (as defined in the Rate and Method of Apportionment of Special Taxes then in effect in the CFD) in each Bond Year for any Bonds Outstanding will equal at least 110% of the sum on the estimated Administrative Expenses and gross debt service in that Bond Year on all Bonds to remain Outstanding after the reduction is approved, and (ii) the CFD hereby finds that any reduction made under such conditions will not adversely affect the interests of the Owners of the Bonds. For purposes of estimating Administrative Expenses for the foregoing calculation, the Independent Financial Consultant shall compute the Administrative Expenses for the current Fiscal Year and escalate that amount by two percent (2 %) in each subsequent Fiscal Year. . (8) Covenants to Defend. The CFD hereby covenants that in the event that any initiative is adopted by the qualified electors in the CFD which purports to reduce the maximum Special Tax below the levels specified in Section 5.2(7) above or to limit the power of the CFD to levy the Special Taxes for the purposes set forth in Section 5.2(2) above, it will commence and pursue legal action in order to preserve its ability to comply with such covenants. (9) Annual Reports to CDIAC. Not later than October 30 of each year, commencing October 30, 200_ and until the October 30 following the final maturity of the Bonds; the CFD shall cause the City to supply the information required by Section 53359.5(b) or (c) of the Act to CDIAC (on such forms as CDIAC may specify). (10) Continuing Disclosure. The CFD hereby covenants to comply with the terms of the Continuing Disclosure Agreement executed by it with respect to the Bonds. ARTICLE VI AMENDMENTS TO FISCAL AGENT AGREEMENT Section 6.1. Supplemental Fiscal Agent Agreements or Orders Not Requiring Bondowner Consent. The CFD may from time to time, and at any time, without notice to or consent of �., any of the Bondowners, adopt Supplemental Fiscal Agent Agreements for any of the following purposes: 45552289.1 29 AGENDA ITEM No PACE L OF•� (1) to cure any ambiguity, to correct or supplement any provisions herein which may be inconsistent with any other provision herein, or to make any other provision with respect to matters or questions arising under this Fiscal Agent Agreement or in any additional resolution or order, provided N"W01 that such action is not materially adverse to the interests of the Bondowners; (2) to add to the covenants and agreements of and the limitations and the restrictions upon the CFD contained in this Fiscal Agent Agreement, other covenants, agreements, limitations and restrictions to be observed by the CFD which are not contrary to or inconsistent with this Fiscal Agent Agreement as theretofore in effect or which further secure Bond payments; (3) to modify, amend or supplement this Fiscal Agent Agreement in such manner as to permit the qualification hereof under the Trust Indenture Act of 1939, as amended, or any similar federal statute hereafter in effect, or to comply with the Code or regulations issued thereunder, and to add such other terms, conditions and provisions as may be permitted by said act or similar federal statute, and which shall not materially adversely affect the interests of the Owners of the Bonds then Outstanding; or (4) to modify, alter or amend the rate and method of apportionment of the Special Taxes in any manner so long as such changes do not reduce the maximum Special Taxes that may be levied in each year on property within the CFD to an amount which is less than that permitted under Section 5.2(7) hereof; or (5) to modify, alter, amend or supplement this Fiscal Agent Agreement in any other respect which is not materially adverse to the Bondowners. Section 6.2. Supplemental Fiscal Agent Agreements or Orders Requiring Bondowner Consent. Exclusive of the Supplemental Fiscal Agent Agreements described in Section 6.1, the Owners of not less than a majority in aggregate principal amount of the Bonds Outstanding shall have the right to consent to and approve the adoption by the CFD of such Supplemental Fiscal Agent Agreements as shall be deemed necessary or desirable by the CFD for the purpose of waiving, modifying, altering, amending, adding to or rescinding, in any particular, any of the terms or provisions contained in this Fiscal Agent Agreement; provided, however, that nothing herein shall permit, or be construed as permitting, (a) an extension of the maturity date of the principal, or the payment date of interest on, any Bond, (b) a reduction in the principal amount of, or redemption premium on, any Bond or the rate of interest thereon, (c) a preference or priority of any Bond over any other Bond, or (d) a reduction in the aggregate principal amount of the Bonds the Owners `of which are required to consent to such Supplemental Fiscal Agent Agreement, without the consent of the Owners of all Bonds then Outstanding. If at any time the CFD shall desire to adopt a Supplemental Fiscal Agent Agreement, which pursuant to the terms of this Section shall require the consent of the Bondowners, the CFD shall so notify the Fiscal Agent and shall deliver to the Fiscal Agent a copy of the proposed Supplemental Fiscal Agent Agreement. The Fiscal Agent shall, at the expense of the CFD, cause notice of the proposed Supplemental Fiscal Agent Agreement to be mailed, by first class mail, postage prepaid, to all Bondowners at their addresses as they appear in the Bond Register. Such notice shall briefly set forth the nature of the proposed Supplemental Fiscal Agent Agreement and shall state that a copy thereof is on file at the office of the Fiscal Agent for inspection by all Bondowners. The failure of any Bondowners to receive such notice shall not affect the validity of such Supplemental Fiscal Agent Agreement when consented to and approved by the Owners of not less than a majority in aggregate principal amount of the Bonds Outstanding as required by this Section. Whenever at any time within one year after the date of the first mailing of such notice, the Fiscal Agent shall receive an instrument or instruments purporting to be executed by the Owners of a majority in aggregate principal amount of the Bonds Outstanding, which instrument or instruments shall refer to the proposed Supplemental Fiscal Agent Agreement described in 45552289.1 30 AGENDA ITEM NO. PACE��OF �., such notice, and shall specifically consent to and approve the adoption thereof by the CFD substantially in the form of the copy referred to in such notice as on file with the Fiscal Agent, such proposed Supplemental Fiscal Agent Agreement, when duly adopted by the CFD, shall thereafter become a part of the proceedings for the issuance of the Bonds. In determining whether the Owners of a majority of the aggregate principal amount of the Bonds have consented to the adoption of any. Supplemental Fiscal Agent Agreement, Bonds which are owned by the CFD or by any person directly or indirectly controlling or controlled by or under the direct or indirect common control with the CFD shall be disregarded and shall be treated as though they were not Outstanding for the purpose of any such determination. Upon the adoption of any Supplemental Fiscal Agent Agreement and the receipt of consent to any such Supplemental Fiscal Agent Agreement from the Owners of not less than a majority in aggregate principal amount of the Outstanding Bonds in instances where such consent is required pursuant to the provisions of this Section, this Fiscal Agent Agreement shall be, and shall be deemed to be, modified and amended in accordance therewith, and the respective rights, duties and obligations under this Fiscal Agent Agreement of the CFD and all Owners of Outstanding Bonds shall thereafter be determined, exercised and enforced hereunder, subject in all respects to such modifications and amendments. Section 6.3. Notation of Bonds; Delivery of Amended Bonds. After the effective date of any action taken as hereinabove provided, the CFD may determine that the Bonds may bear a notation, by endorsement in form approved by the CFD, as to such action, and in that case upon demand of the Owner of any Outstanding Bond at such effective date and presentation of his Bond for the purpose at the office of the Fiscal Agent or at such additional offices as the Fiscal Agent may select and designate for that purpose, a suitable notation as to such action shall be made on such Bonds. If the CFD shall so determine, new Bonds so modified as, in the opinion of the CFD, shall be necessary to conform to such action shall be prepared and executed, and in that case upon demand of the Owner of any Outstanding '^ Bond at such effective date such new Bonds shall be exchanged at the office of the Fiscal Agent or at such additional offices as the Fiscal Agent may select and designate for that purpose, without cost to each Owner of Outstanding Bonds, upon surrender of such Outstanding Bonds. ARTICLE VII FISCAL AGENT Section 7.1. Fiscal Agent. Union Bank of California, N.A., a national banking association shall be the Fiscal Agent for the Bonds unless and until another Fiscal Agent is appointed by the CFD hereunder. The CFD may, at any time, provided that no Event of Default has occurred and is continuing, appoint a successor Fiscal Agent satisfying the requirements of Section 7.2 below for the purpose of receiving all money which the CFD is required to deposit with the Fiscal Agent hereunder and to allocate, use and apply the same as provided in this Fiscal Agent Agreement. The Fiscal Agent is hereby authorized to and shall mail by first class mail, postage prepaid, or wire transfer in accordance with Section 2.5 above, interest payments to the Bondowners, to select Bonds for redemption, and to maintain the Bond Register. The Fiscal Agent is hereby authorized to pay the principal of and premium, if any, on the Bonds when the same are duly presented to it for payment at maturity or on call and redemption, to provide for the registration of transfer and exchange of Bonds presented to it for such purposes, to provide for the cancellation of Bonds all as provided in this Fiscal Agent Agreement, and to provide for the authentication of Bonds, and shall perform all other duties assigned to or imposed on it as provided in this Fiscal Agent Agreement; provided, however, that the Fiscal Agent undertakes to perform such duties and only such duties as are set forth in this Fiscal Agent �— Agreement, and no duties of the Fiscal Agent shall be implied hereunder. Discretionary rights of the Fiscal Agent under this Fiscal Agent Agreement shall not be construed as duties. The Fiscal Agent may 45552289.1 31 AGENDA ITEM N0. PAGE� OF Aa, C, execute any of the powers hereunder or perform any duties hereunder either directly or by or through agents or attorneys, and the Fiscal Agent shall not be responsible for any misconduct or negligence on the part of any agent or attorney appointed by it with due care hereunder. The Fiscal Agent shall keep accurate records of all funds administered by it and all Bonds paid, discharged and cancelled by it. The Fiscal Agent may establish such funds and accounts as it deems necessary to perform its obligations hereunder. The Fiscal Agent is hereby authorized to redeem the Bonds when duly presented for payment at maturity, or on redemption prior to maturity. The Fiscal Agent shall cancel all Bonds upon payment thereof in accordance with the provisions of Section 10.1 hereof. Section 7.2. Removal of Fiscal Agent. Provided that no Event of Default has occurred and is continuing, the CFD may at any time at its sole discretion remove the Fiscal Agent initially appointed, and any successor thereto, by delivering to the Fiscal Agent a written notice of its decision to remove the Fiscal Agent and may appoint a successor or successors thereto; provided that any such successor, other than the Fiscal Agent, shall be a bank or trust company having (or if such bank or trust company is a member of a bank holding company system its bank holding company has) a combined capital (exclusive of borrowed capital) and surplus of at least $50,000,000, and subject to supervision or examination by federal or state Authority. Any removal shall become effective only upon acceptance of appointment by the successor Fiscal Agent. If any bank or trust company appointed as a successor publishes a report of condition at least annually, pursuant to law or to the requirements of any supervising or examining authority above referred to, then for the purposes of this Section the combined capital and surplus of such bank or trust company shall be deemed to be its combined capital and surplus as set forth in its most recent report of condition so published. Any removal of the Fiscal Agent and appointment of a successor Fiscal Agent shall become effective only upon acceptance of appointment by the successor Fiscal Agent and notice being sent by the successor Fiscal Agent to the Bondowners of the successor Fiscal Agent's identity and address. Section 7.3. Resignation of Fiscal Agent. The Fiscal Agent may at any time resign by giving written notice to the CFD and by giving to the Owners notice of such resignation, which notice shall be mailed to the Owners at their addresses appearing in the registration books in the office of the Fiscal Agent. Upon receiving such notice of resignation, the CFD shall promptly appoint a successor Fiscal Agent satisfying the criteria in Section 7.2 above by an instrument in writing. Any resignation or removal of the Fiscal Agent and appointment of a successor Fiscal Agent shall become effective only upon acceptance of appointment by the successor Fiscal Agent provided, however, that in the event the CFD does not appoint a successor Fiscal Agent within 30 days following receipt of such notice of resignation, the resigning Fiscal Agent may, at the expense of the CFD, petition the appropriate court having jurisdiction to appoint a successor Fiscal Agent. Section 7.4. Compensation and Liability of Fiscal Agent. The CFD shall from time to time, subject to any agreement between the CFD and the Fiscal Agent then in force, pay to the Fiscal Agent compensation for its services, reimburse the Fiscal Agent for all of its advances and expenditures, including, but not limited to, advances to and reasonable fees and expenses of independent accountants and counsel and agents employed by it in the exercise and performance of its powers and duties hereunder. The CFD agrees to indemnify the Fiscal Agent, including its officers, directors, employees and agents for, and hold it harmless against, any loss, claim, liability or expense incurred which does not arise from its own negligence or willful misconduct, arising out of or in connection with the administration of this Fiscal Agent Agreement, including the costs and expenses of defending itself against any claim or liability in connection with the exercise or performance of any of its powers or duties hereunder. The Fiscal Agent shall not be liable for any error in judgment made in good faith by a reasonable officer, unless it shall be proved that the Fiscal Agent was negligent in ascertaining the 45552289.1 32 AGENDA ITEM N0. pAGE__ ( OF 4�� AO-. pertinent facts. Whether or not therein expressly so provided, every provision of this Fiscal Agent Agreement relating to the conduct of or affecting the liability of or affording protection to the Fiscal Agent (acting in its capacity as Fiscal Agent or in its capacity as Dissemination Agent), its officers, directors, employees and agents, shall be subject to the provisions of this Section 7.4. The recitals of fact and all promises, covenants and agreements contained herein and in the Bonds and any offering documents pertaining to the Bonds shall be taken as statements, promises, covenants and agreements of the CFD, and the Fiscal Agent assumes no responsibility for the correctness of the same and makes no representations as to the validity or sufficiency of this Fiscal Agent Agreement or the Bonds, and shall incur no responsibility in respect thereof, other than in connection with its duties or obligations specifically set forth herein, in the Bonds, or in the certificate of authentication assigned to or imposed upon the Fiscal Agent. The Fiscal Agent shall be under no responsibility or duty with respect to the issuance of the Bonds for value. The Fiscal Agent shall be protected in acting upon any notice, resolution, request, consent, order, certificate, report, Bond or other paper or document believed by it to be genuine and to have been signed or presented by the proper party or parties. The Fiscal Agent may consult with counsel, who may be counsel to the CFD, with regard to legal questions, and the opinion of such counsel shall be full and complete authorization and protection in respect of any action taken or suffered hereunder in good faith and in accordance therewith. The Fiscal Agent shall not be bound to recognize any person as the Owner of a Bond unless and until such Bond is submitted for inspection, if required, and his title thereto satisfactorily established, if disputed. The Fiscal Agent may become the owner or pledgee of Bonds, and may otherwise deal with the CFD with the same rights it would have if it were not the Fiscal Agent. Whenever in the administration of its duties under this Fiscal Agent Agreement the Fiscal Agent shall deem it necessary or desirable that a matter be proved or established prior to taking or suffering any action hereunder, such matter (unless other evidence in respect thereof be herein specifically prescribed) may, in the absence of bad faith on the part of the Fiscal Agent, be deemed to be conclusively proved and established by a written certificate of the CFD, and such certificate shall be full warrant to the Fiscal Agent for any action taken or suffered under the provisions of this Fiscal Agent Agreement upon the faith thereof, but in its discretion the Fiscal Agent may, in lieu thereof, accept other evidence of such matter or may require such additional evidence as to it may seem reasonable. The Fiscal Agent shall have no duty or obligation whatsoever to enforce the collection of Special Taxes or other funds to be deposited with it hereunder, or as to the correctness of any amounts received, but its liability shall be limited to the proper accounting for such funds as it shall actually receive. No provision in this Fiscal Agent Agreement shall require the Fiscal Agent to expend or risk its own funds or otherwise incur any financial liability in the performance of any of its duties hereunder, or in the exercise of its rights or powers. All rights and indemnities of the Fiscal Agent pursuant to this Section 7.4 shall survive the removal or resignation of the Fiscal Agent, the discharge of the Bonds, or the amendment or assignment of this Fiscal Agent Agreement. Section 7.5. Merger or Consolidation. Any company into which the Fiscal Agent may be merged or converted or with which it may be consolidated or any company resulting from any merger, conversion or consolidation to which it shall be a party or any company to which the Fiscal Agent may sell or transfer all or substantially all of its corporate trust business, shall be the successor to the Fiscal 45552289.1 33 AGENDA ITEM N0. PAGE OF Agent without the execution or filing of any paper or further act, anything herein to the contrary notwithstanding. ARTICLE VIII EVENTS OF DEFAULT; REMEDIES Section 8.1. Events of Default. Any one or more of the following events shall constitute an "event of default ": (a) Default in the due and punctual payment of the principal of or redemption premium, if any, on any Bond when and as the same shall become due and payable, whether at maturity as therein expressed, by declaration or otherwise; (b) Default in the due and punctual payment of the interest on any Bond when and as the same shall become due and payable; or (c) Except as described in (a) or (b), default shall be made. by the CFD in the observance of any of the agreements, conditions or covenants on its part contained in this Fiscal Agent Agreement or the Bonds, and such default shall have continued for a period of 30 days after the CFD shall have been given notice in writing of such default by the Fiscal Agent or the Owners of 25% in aggregate principal amount of the Outstanding Bonds. The CFD agrees to give notice to the Fiscal Agent immediately upon the occurrence of an event of default under (a) or (b) above and within 30 days of the CFD's knowledge of an event of default under (c) above. The Fiscal Agent shall not be deemed to have knowledge of any event of default described in Section 8.1(c) unless a responsible officer shall have actual knowledge thereof or the Fiscal Agent shall 1-.60 have received written notice at its Principal Office. Section 8.2. Remedies of Owners. Following the occurrence of an event of default, any Owner shall have the right for the equal benefit and protection of all Owners similarly situated: (1) By mandamus or other suit or proceeding at law or in equity to enforce his rights against the CFD and any of the members, officers and employees of the CFD, and to compel the CFD or any such members, officers or employees to perform and carry out their duties under the Act and their agreements with the Owners as provided in this Fiscal Agent Agreement; (2) By suit in equity to enjoin any actions or things which are unlawful or violate the rights of the Owners; or (3) By a suit in equity to require the CFD and its members, officers and employees to account as the fiscal agent of an express trust. Nothing in this Article or in any other provision of this Fiscal Agent Agreement or the Bonds shall affect or impair the obligation of the CFD, which is absolute and unconditional, to pay the interest on and principal of the Bonds to the respective Owners thereof at the respective dates of maturity, as herein provided, out of the Special Taxes and other amounts pledged for such payment, or affect or impair the right of action, which is also absolute and unconditional, of such Owners to institute suit to enforce such payment by virtue of the contract embodied in the Bonds and in this Fiscal Agent Agreement. AGENDA ITEM NQ. (l,( _ assszzs9.i 34 PAGE 6F,� �. A waiver of any default or breach of duty or contract by any Owner shall not affect any subsequent default or breach of duty or contract, or impair any rights or remedies on any such subsequent default or breach. No delay or omission by any Owner to exercise any right or power accruing upon any default shall impair any such right or power or shall be construed to be a waiver of any such default or an acquiescence therein, and every power and remedy conferred upon the Owners by the Act or by this article may be enforced and exercised from time to time and as often as shall be deemed expedient by the Owners. If any suit, action or proceeding to enforce any right or exercise any remedy is abandoned or determined adversely to the Owners, the CFD and the Owners shall be restored to their former positions, rights and remedies as if such suit, action or proceeding had not been brought or taken. No remedy herein conferred upon or reserved to the Owners is intended to be exclusive of any other remedy. Every such remedy shall be cumulative and shall be in addition to every other remedy given hereunder or now or hereafter existing, at law or in equity or by statute or otherwise, and may be exercised without exhausting and without regard to any other remedy conferred by the Act or any other law. In case the moneys held by the Fiscal Agent after an event of default pursuant to Section 8.1(a) or (b) shall be insufficient to pay in full the whole amount so owing and unpaid upon the Outstanding Bonds, then all available amounts shall be applied to the payment of such principal and interest without preference or priority of principal over interest, or interest over principal, or of any installment of interest over any other installment of interest, ratably to the aggregate of such principal and interest. ARTICLE IX DEFEASANCE Section 9.1. Defeasance. If the CFD shall pay or cause to be paid, or there shall otherwise be paid, to the Owner of an Outstanding Bond the interest due thereon and the principal thereof, at the times and in the manner stipulated in this Fiscal Agent Agreement or any Supplemental Fiscal Agent Agreement, then the Owner of such Bond shall cease to be entitled to the pledge of Special Taxes, and, other than as set forth below, all covenants, agreements and other obligations of the CFD to the Owner of such Bond under this Fiscal Agent Agreement shall thereupon cease, terminate and become void and be discharged and satisfied. In the event of a defeasance of all Outstanding Bonds pursuant to this Section, the Fiscal Agent shall execute and deliver to the CFD all such instruments as may be desirable to evidence such discharge and satisfaction, and the Fiscal Agent shall pay over or deliver to the CFD's general fund all money or securities held by it pursuant to this Fiscal Agent Agreement which are not required for the payment of the principal of, premium, if any, and interest due on such Bonds. Any Outstanding Bond shall be deemed to have been paid within the meaning expressed in the first paragraph of this Section if such Bond is paid in any one or more of the following ways: (a) by paying or causing to be paid the principal of, premium, if any, and interest on such Bond, as and when the same become due and payable; (b) by depositing with the Fiscal Agent at or before maturity, money which, together with the amounts then on deposit in the Special Tax Fund (exclusive of amounts transferred to the Administrative Expense Account) and available for such purpose, is fully sufficient to pay the principal of, premium, if any, and interest on such Bond, as and when the same shall become due and payable; or AGENDA ITEM N0. 45552289.1 35 PAGEL�LLQF (c) by depositing with the Fiscal Agent or another escrow bank appointed by the CFD noncallable Defeasance Securities, in which the CFD may lawfully invest its money, in such amount as will be sufficient, together with the interest to accrue thereon and moneys then on deposit in the Special Tax Fund (exclusive of amounts transferred to the Administrative Expense Account) and available for such purpose, together with the interest to accrue thereon, to pay and discharge the principal of, premium, if any, and interest on such Bond, as and when the same shall become due and payable; then, at the election of the CFD, and notwithstanding that any Outstanding Bonds shall not have been surrendered for payment, all obligations of the CFD under this Fiscal Agent Agreement and any Supplemental Fiscal Agent Agreement with respect to such Bond shall cease and terminate, except for the obligation of the Fiscal Agent to pay or cause to be paid to the Owners of any such Bond not so surrendered and paid, all sums due thereon and except for the covenants of the CFD contained in Section 5.2(6) or any covenants in a Supplemental Fiscal Agent Agreement relating to compliance with the Code. Notice of such election shall be filed with the Fiscal Agent not less than ten days prior to the proposed defeasance date, or such shorter period of time as may be acceptable to the Fiscal Agent. In connection with a defeasance under (b) or (c) above, there shall be provided to the CFD a verification report from an independent nationally recognized certified public accountant stating its opinion as to the sufficiency of the moneys or securities deposited with the Fiscal Agent or the escrow bank to pay and discharge the principal of, premium, if any, and interest on all Outstanding Bonds to be defeased in accordance with this Section, as and when the same shall become due and payable, and an opinion of Bond Counsel (which may rely upon the opinion of the certified public accountant) to the effect that the Bonds being defeased have been legally defeased in accordance with this Fiscal Agent Agreement and any applicable Supplemental Fiscal Agent Agreement. If a forward supply contract is employed in connection with an advance refunding to be effected under (c) above, (i) such verification report shall expressly state that the adequacy of the amounts deposited with the bank under (c) above to accomplish the refunding relies solely on the initial escrowed investments and the maturity principal thereof and interest income thereon r./ and does not assume performance under or compliance with the forward supply contract, and (ii) the applicable escrow agreement executed to effect an advance refunding in accordance with (c) above shall provide that, in the event of any discrepancy or difference between the terms of the forward supply contract and the escrow agreement, the terms of the escrow agreement shall be controlling. Upon a defeasance, the Fiscal Agent, upon request of the CFD, shall release the rights of the Owners of such Bonds which have been defeased under this Fiscal Agent Agreement and any Supplemental Fiscal Agent Agreement and execute and deliver to the CFD all such instruments as may be desirable to evidence such release, discharge and satisfaction. In the case of a defeasance hereunder of all Outstanding Bonds, the Fiscal Agent shall pay over or deliver to the CFD any funds held by the Fiscal Agent at the time of a defeasance, which are not required for the purpose of paying and discharging the principal of, premium, if any, or interest on the Bonds when due. The Fiscal Agent shall, at the written direction of the CFD, mail, first class, postage prepaid, a notice to the Bondowners whose Bonds have been defeased, in the form directed by the CFD, stating that the defeasance has occurred. Section 9.2. No Additional Bonds. The CFD shall not issue bonds, notes or other forms of indebtedness payable from Special Taxes and other amounts deposited in the Special Tax Fund and secured by a lien and charge upon such amounts equal to the lien and charge securing the Outstanding Bonds. 45552289. 36 AGENDA ITEM N0. `A PACE,�Q_�� I*-- ARTICLE X MISCELLANEOUS Section 10.1. Cancellation of Bonds. All Bonds surrendered to the Fiscal Agent for payment upon maturity or for redemption shall be upon payment therefor, and any Bond purchased by the CFD as authorized herein and delivered to the Fiscal Agent for such purpose shall be, cancelled forthwith and shall not be reissued. The Fiscal Agent shall destroy such Bonds, as provided by law, and, upon request of the CFD, furnish to the CFD a certificate of such destruction. Section 10.2. Execution of Documents and Proof of Ownership. Any request, direction, consent, revocation of consent, or other instrument in writing required or permitted by this Fiscal Agent Agreement to be signed or executed by Bondowners may be in any number of concurrent instruments of similar tenor may be signed or executed by such Owners in person or by their attorneys appointed by an instrument in writing for that purpose, or by the bank, trust company or other depository for such Bonds. Proof of the execution of any such instrument, or of any instrument appointing any such attorney, and of the ownership of Bonds shall be sufficient for the purposes of this Fiscal Agent Agreement (except as otherwise herein provided), if made in the following manner: (1) The fact and date of the execution by any Owner or his or her attorney of any such instrument and of any instrument appointing any such attorney, may be proved by a signature guarantee of any bank or trust company or other eligible guarantor located within the United States of America. Where any such instrument is executed by an officer of a corporation or association or a member of a partnership on behalf of such corporation, association or partnership, such signature guarantee shall also constitute sufficient proof of his Authority. (2) As to any Bond, the person in whose name the same shall be registered in the Bond Register shall be deemed and regarded as the absolute owner thereof for all purposes, and payment of or on account of the principal of any such Bond, and the interest thereon, shall be made only to or upon the order of the registered Owner thereof or his or her legal representative. All such payments shall be valid and effectual to satisfy and discharge the liability upon such Bond and the interest thereon to the extent of the sum or sums to be paid. Neither the CFD nor the Fiscal Agent shall be affected by any notice to the contrary. Nothing contained in this Fiscal Agent Agreement shall be construed as limiting the Fiscal Agent or the CFD to such proof, it being intended that the Fiscal Agent or the CFD may accept any other evidence of the matters herein stated which the Fiscal Agent or the CFD may deem sufficient. Any request or consent of the Owner of any Bond shall bind every future Owner of the same Bond in respect of anything done or suffered to be done by the Fiscal Agent or the CFD in pursuance of such request or consent. Section 10.3. Unclaimed Moneys. To the extent permitted by law, anything in this Fiscal Agent Agreement to the contrary notwithstanding, any money held by the Fiscal Agent for the payment and discharge of any of the Outstanding Bonds which remain unclaimed for a period ending at the earlier of two Business Days prior to the date such funds would escheat to the State or two years after the date when such Outstanding Bonds have become due and payable, if such money was held by the Fiscal Agent at such date, or for a period ending at the earlier of two Business Days prior to the date such funds would escheat to the State or two years after the date of deposit of such money if deposited with the Fiscal Agent after the date when such Outstanding Bonds become due and payable, shall be repaid by the Fiscal Agent to the CFD, as its absolute property, and the Fiscal Agent shall thereupon be released and discharged with respect thereto and the Owners shall look only to the CFD for the payment of such Outstanding Bonds; 45552289.1 37 AGENDA ITEM NO. pAGE ;_OF provided, however, that, before being required to make any such payment to the CFD, the Fiscal Agent at the written request of the CFD or the Fiscal Agent shall, at the expense of the CFD, cause to be mailed by first -class mail, postage prepaid, to the registered Owners of such Outstanding Bonds at their addresses as '"Wo they appear on the registration books of the Fiscal Agent a notice that said money remains unclaimed and that, after a date named in said notice, which date shall not be less than 30 days after the date of the mailing of such notice, the balance of such money then unclaimed will be returned to the CFD. The Fiscal Agent shall not be liable to the CFD or any Owner for interest on uninvested funds held by it for the payment and discharge of the principal, premium or interest on any of the Bonds to any Owner. Section 10.4. Provisions Constitute Contract. The provisions of this Fiscal Agent Agreement shall constitute a contract between the CFD and the Bondowners and the provisions hereof shall be construed in accordance with the laws of the State of California. In case any suit, action or proceeding to enforce any right or exercise any remedy shall be brought or taken and, should said suit, action or proceeding be abandoned, or be determined adversely to the Bondowners or the Fiscal Agent, then the CFD, the Fiscal. Agent and the Bondowners shall be restored to their former positions, rights and remedies as if such suit, action or proceeding had not been brought or taken. After the issuance and delivery of the Bonds this Fiscal Agent Agreement shall be irrepealable, but shall be subject to modifications to the extent and in the manner provided in this Fiscal Agent Agreement, but to no greater extent and in no other manner. Section 10.5. Future Contracts. Nothing herein contained shall be deemed to restrict or prohibit the CFD from making contracts or creating bonded or other indebtedness payable from a pledge of the Special Taxes which is subordinate to the pledge hereunder, or which is payable from the general fund of the CFD or from taxes or any source other than the Special Taxes and other amounts pledged ,"1001 hereunder. Section 10.6. Further Assurances. The CFD will adopt, make, execute and deliver any and all such further resolutions, instruments and assurances as may be reasonably necessary or proper to carry out the intention or to facilitate the performance of this Fiscal Agent Agreement, and for the better assuring and confirming unto the Owners of the Bonds the rights and benefits provided in this Fiscal Agent Agreement. Section 10.7. Severability. If any covenant, agreement or provision, or any portion thereof, contained in this Fiscal Agent Agreement, or the application thereof to any person or circumstance, is held to be unconstitutional, invalid or unenforceable, the remainder of this Fiscal Agent Agreement and the application of any such covenant, agreement or provision, or portion thereof, to other persons or circumstances, shall be deemed severable and shall not be affected thereby, and this Fiscal Agent Agreement, the Bonds issued pursuant hereto shall remain valid and the Bondowners shall retain all valid rights and benefits accorded to them under the laws of the State of California. Section 10.8. Notices. Any notices required to be given to the CFD with respect to the Bonds or this Fiscal Agent Agreement shall be mailed, first class, postage prepaid, or personally delivered to the Mayor of the City of Lake Elsinore, 130 South Main Street, Lake Elsinore, California 92530, and all notices to the Fiscal Agent in its capacity as Fiscal Agent shall be mailed, first class, postage prepaid, or personally delivered to the Fiscal Agent, Union Bank of California, N.A., 120 South San Pedro Street, Suite 400, Los Angeles, California 90012, Attention: Corporate Trust Department. 45552289.1 38 AGENDA ITEM NO. 94GE_ OF� /.,- Section 10.9. General Authorization. The Mayor, City Manager and the City Treasurer are hereby respectively authorized to do and perform from time to time any and all acts and things consistent with this Fiscal Agent Agreement necessary or appropriate to carry the same into effect. ,0-�' Section 10.10. Execution in Counterparts. This Fiscal Agent Agreement may be executed in any number of counterparts and each of such counterparts shall for all purposes be deemed to be an original; and all such counterparts shall together constitute but one and the same instrument. 45552289.1 39 AGENDA ITEM N0. PACE _53_0F� IN WITNESS WHEREOF, the CITY COUNCIL OF THE CITY OF LAKE ELSINORE, acting as the legislative body of CITY OF LAKE ELSINORE COMMUNITY FACILITIES DISTRICT NO. 2005 -1 (SERENITY), has caused this Fiscal Agent Agreement to be signed by its Mayor and Union Bank 1.0 0, of California, N.A., in token of its acceptance of the trust created hereunder, has caused this Fiscal Agent Agreement to be signed in its corporate name by its officer identified below, all as of the day and year first above written. CITY OF LAKE ELSINORE COMMUNITY FACILITIES DISTRICT NO. 2005 -1 (SERENITY) Mayor of the City of Lake Elsinore, acting in its capacity as the legislative body of City of Lake Elsinore Community Facilities District No. 2005 -1 (Serenity) UNION BANK OF CALIFORNIA, N.A., as Fiscal Agent By: Its: Authorized Officer 45552289.1 S -1 AGENDA ITEM NO. PAGE OF No. EXHIBIT A FORM OF BOND UNITED STATES OF AMERICA STATE OF CALIFORNIA COUNTY OF RIVERSIDE CITY OF LAKE ELSINORE COMMUNITY FACILITIES DISTRICT NO. 2005-1 (SERENITY) SPECIAL TAX BOND, 2006 SERIES A INTEREST RATE MATURITY DATE DATED DATE CUSIP NO. % September 1, _ , 2006 REGISTERED OWNER: CEDE & CO. PRINCIPAL AMOUNT: AND NO/ 100 DOLLARS CITY OF LAKE ELSINORE COMMUNITY FACILITIES DISTRICT NO. 2005 -1 (SERENITY) (the "CFD ") situated in the County of Riverside, State of California, FOR VALUE RECEIVED, hereby promises to pay, solely from certain amounts held under the Fiscal Agent Agreement (as hereinafter defined), to the Registered Owner named above, or registered assigns, on the Maturity Date set forth above, unless redeemed prior thereto as hereinafter provided, the Principal Amount set forth above, and to pay interest on such Principal Amount from the Interest Payment Date (as hereinafter defined) next preceding the date of authentication hereof, unless (i) the date of authentication is an Interest Payment Date in which event interest shall be payable from such date of authentication, (ii) the date of authentication is after a Record Date (as hereinafter defined) but prior to the immediately succeeding Interest Payment Date, in which event interest shall be payable from the Interest Payment Date immediately succeeding the date of authentication, or (iii) the date of authentication is prior to the close of business on the first Record Date in which event interest shall be payable from the Dated Date set forth above. Notwithstanding the foregoing, if at the time of authentication of this Bond interest is in default, interest on this Bond shall be payable from the last Interest Payment Date to which the interest has been paid or made available for payment or, if no interest has been paid or made available for payment, interest on this Bond shall be payable from the Dated Date set forth above. Interest will be paid semiannually on March 1 and September 1 of each year (each, an "Interest Payment Date "), commencing September 1, 2006, at the Interest Rate set forth above, until the Principal Amount hereof is paid or made available for payment. The principal of and premium, if any, on this Bond are payable to the Registered Owner hereof in lawful money of the United States of America upon presentation and surrender of this Bond at the Principal Office of Union Bank of California, N.A., a national banking association (the "Fiscal Agent") in Los Angeles, California. Interest on this Bond shall be paid by check of the Fiscal Agent mailed by first 100-1 class mail, postage prepaid, or in certain circumstances described in the Fiscal Agent Agreement by wire transfer to an account within the United States, to the Registered Owner hereof as of the close of business 45552289.1 A -1 AGENDA ITEM N0. PAGE�_OF on the fifteenth day of the month preceding the month in which the Interest Payment Date occurs (the "Record Date ") at such Registered Owner's address as it appears on the registration books maintained by the Fiscal Agent. Interest due on the Bonds shall be calculated on a basis of a 360 -day year comprised of twelve 30 -day months. This Bond is one of a duly authorized issue of "City of Lake Elsinore Community Facilities District No. 2005 -1 (Serenity) Special Tax Bonds, 2006 Series A" (the "Bonds ") issued in the aggregate principal amount of $ pursuant to the Mello -Roos Community Facilities Act of 1982, as amended, being Sections 53311, et seq., of the California Government Code (the "Act ") for the purpose of financing the acquisition of certain capital facilities in the CFD, funding a reserve account, paying capitalized interest and paying certain costs related to the issuance of the Bonds. The issuance of the Bonds and the terms and conditions thereof are provided for by a resolution adopted by the City Council of the City of Lake Elsinore, acting in its capacity as the legislative body of the CFD (the "Council ") on January 25, 2005 and a Fiscal Agent Agreement dated as of February 1, 2006 (the "Fiscal Agent Agreement "), between the CFD and the Fiscal Agent, and this reference incorporates the Fiscal Agent Agreement herein, and by acceptance hereof the Registered Owner of this Bond assents to said terms and conditions. The Fiscal Agent Agreement is executed under and this Bond is issued under, and both are to be construed in accordance with, the laws of the State of California. Any amounts for the payment hereof shall be limited to the Special Taxes pledged and collected or foreclosure proceeds received following a default in payment of the Special Taxes and other amounts deposited to the Special Tax Fund (exclusive of amounts transferred to the Administrative Expense Account) established under the Fiscal Agent Agreement. The CFD has covenanted for the benefit of the owners of the Bonds that under certain circumstances described in the Fiscal Agent Agreement it will commence and diligently pursue to completion appropriate foreclosure proceedings in the event of delinquencies of Special Tax installments levied for payment of principal and interest on the Bonds. The Bonds are subject to redemption prior to maturity at the option of the CFD on any date on or after September 1, 2012, as a whole or in part, by lot, from any available source of funds at the following redemption prices (expressed as a percentage of the principal amount of Bonds to be), together with accrued interest thereon to the date fixed for redemption: Redemption Dates Redemption Prices September 1, 2012 through August 31, 2013 102.0% September 1, 2013 through August 31, 2014 101.0 September 1, 2014 and thereafter 100.0 The Bonds are subject to mandatory redemption prior to maturity on any date, in part, in a manner determined by the District from prepayments of Special Taxes at the following redemption prices (expressed as a percentage of the principal amount of Bonds to be redeemed), together with accrued interest thereon to the date fixed for redemption: Redemption Dates Redemption Prices March 1, 2006 through August 31, 2010 103.0% September 1, 2010 through August 31, 2012 102.5 September 1, 2012 and thereafter As provided for in optional redemption AGENDA ITEM N0. 45552289.1 A-2 ' Q PACE-5-L—o Nwao 1001 In connection with such redemption, the CFD may also apply amounts in the Reserve Account which will be in excess of the Reserve Requirement as a result of such Special Tax prepayment to redeem Bonds as set forth above. The Bonds are subject to special mandatory redemption on any date from unused proceeds of the Bonds after completion or abandonment of the improvements to be financed with such proceeds, from the deposit of fees with the CFD by a public agency which has accepted facilities serving the CFD and from insurance or condemnation proceeds or other mandatory redemption, without premium, plus accrued interest to the redemption date, all as determined by the CFD. The Bonds maturing on September 1, and September 1, are subject to mandatory redemption, in part by lot, on September 1 in each year commencing September 1, , with respect to the Bonds maturing on September 1, , and commencing September 1, , with respect to the Bonds maturing on September 1, __, from the Sinking Fund Payments that have been deposited into the Redemption Account at a redemption price equal to the principal amount thereof to be redeemed, without premium, plus accrued interest thereon to the date of redemption as set forth in the following schedule; provided, however, that (i) in lieu of redemption thereof, the Bonds may be purchased by the CFD and tendered to the Fiscal Agent, and (ii) if some but not all of the Bonds have been redeemed pursuant to optional redemption, special mandatory redemption from prepayment of Special Taxes or any other special mandatory redemption provision provided in the Fiscal Agent Agreement, the total amount of all future sinking payments will be reduced by the aggregate principal amount of the Bonds so redeemed, to be allocated among such sinking payments on a pro rata basis (as nearly as practicable) in integral multiples of $5,000 as determined by the CFD. Bonds Maturing on September 1, Redemption Date (September 1) Principal Amount (maturity) Bonds Maturing on September 1, Redemption Date (September 1) Principal Amount 10-11 (maturity) AGENDA ITEM N0. 45552289.1 A -3 PACE-57 OF Notice of redemption with respect to the Bonds to be redeemed shall be mailed to the registered owners thereof not less than 30 nor more than 60 days prior to the redemption date by first class mail, postage prepaid, to the addresses set forth in the registration books. Neither a failure of the Registered ter% Owner hereof to receive such notice nor any defect therein will affect the validity of the proceedings for redemption. All Bonds or portions thereof so called for redemption will cease to accrue interest on the specified redemption date; provided that funds for the redemption are on deposit with the Fiscal Agent on the redemption date. Thereafter, the registered owners of such Bonds shall have no rights except to receive payment of the redemption price upon the surrender of the Bonds. This Bond shall be registered in the name of the Registered Owner hereof, as to both principal and interest, and the CFD and the Fiscal Agent may treat the Registered Owner hereof as the absolute owner for all purposes and shall not be affected by any notice to the contrary. The Bonds are issuable only in fully registered form in the denomination of $5,000 or any integral multiple thereof and may be exchanged for a like aggregate principal amount of Bonds of other authorized denominations of the same issue and maturity, all as more fully set forth in the Fiscal Agent Agreement. This Bond is transferable by the Registered Owner hereof, in person or by his attorney duly authorized in writing, at the Principal Office of the Fiscal Agent in Los Angeles, California, but only in the manner, subject to the limitations and upon payment of the charges provided in the Fiscal Agent Agreement, upon surrender and cancellation of this Bond. Upon such transfer, a new registered Bond of authorized denomination or denominations for the same aggregate principal amount of the same issue and maturity will be issued to the transferee in exchange therefor. The Fiscal Agent shall not be required to register transfers or make exchanges of (i) any Bonds for a period of 15 days next preceding any selection of the Bonds to be redeemed, or (ii) any Bonds chosen for redemption. 1./' The rights and obligations of the CFD and of the registered owners of the Bonds may be amended at any time, and in certain cases without notice to or the consent of the registered owners, to the extent and upon the terms provided in the Fiscal Agent Agreement. The Fiscal Agent Agreement contains provisions permitting the CFD to make provision for the payment of the interest on, and the principal and premium, if any, of the Bonds so that such Bonds shall no longer be deemed to be outstanding under the terms of the Fiscal Agent Agreement. THE BONDS DO NOT CONSTITUTE OBLIGATIONS OF THE CITY OF LAKE ELSINORE (THE "CITY ") OR OF THE CFD FOR WHICH THE CITY OR THE CFD IS OBLIGATED TO LEVY OR PLEDGE, OR HAS LEVIED OR PLEDGED, GENERAL OR SPECIAL TAXES, OTHER THAN THE SPECIAL TAXES REFERENCED HEREIN. THE BONDS ARE LIMiTED OBLIGATIONS OF THE CFD PAYABLE FROM THE PORTION OF THE SPECIAL TAXES AND OTHER AMOUNTS PLEDGED UNDER THE FISCAL AGENT AGREEMENT BUT ARE NOT A DEBT OF THE CITY, THE STATE OF CALIFORNIA OR ANY OF ITS POLITICAL SUBDIVISIONS WITHIN THE MEANING OF ANY CONSTITUTIONAL OR STATUTORY LIMITATION OR RESTRICTION. This Bond shall not become valid or obligatory for any purpose until the certificate of authentication and registration hereon endorsed shall have been dated and signed by the Fiscal Agent. IT IS HEREBY CERTIFIED, RECITED AND DECLARED that all acts, conditions and things required by law to exist, happen and be performed precedent to and in the issuance of this Bond do exist, have happened and have been performed in due time, form and manner as required by law, and that the 45552289.1 A4 AGENDA ITEM NO. PAGE�� OF 10 .1 amount of this Bond, together with all other indebtedness of the CFD, does not exceed any debt limit prescribed by the laws or Constitution of the State of California. IN WITNESS WHEREOF, City of Lake Elsinore Community Facilities District No. 2005 -1 (Serenity) has caused this Bond to be dated as of the Dated Date, to be signed on behalf of the CFD by the Mayor of the City of Lake Elsinore, acting as the legislative body of the City of Lake Elsinore Community Facilities District No. 2005 -1 (Serenity) by her manual signature and attested by the manual signature of the City Clerk of the City of Lake Elsinore and has caused the seal of the City to be reproduced hereon. [SEAL] ATTEST: City Clerk of the City of Lake Elsinore, acting as the legislative body of City of Lake Elsinore Community Facilities District No. 2005 -1 (Serenity) Dated: By: Mayor of the City of Lake Elsinore , acting as the legislative body of City of Lake Elsinore Community Facilities District No. 2005 -1 (Serenity) [FORM OF FISCAL AGENT'S CERTIFICATE OF AUTHENTICATION AND REGISTRATION] This is one of the Bonds described in the within - defined Fiscal Agent Agreement. UNION BANK OF CALIFORNIA, N.A., as Fiscal Agent BY: Its: Authorized Signatory 45552289.1 A -5 ACENDA ITEM N0. PAGE E� OF [FORM OF ASSIGNMENT] For value received the undersigned hereby sells, assigns and transfers unto (NAME, ADDRESS, AND TAX IDENTIFICATION OR SOCIAL SECURITY NUMBER OF ASSIGNEE) the within- mentioned Bond and hereby irrevocably constitute(s) and appoint(s) attorney, to transfer the same on the registration books of the Fiscal Agent with full power of substitution in the premises. Dated: Signature Guaranteed: Note: Signature(s) must be guaranteed by an eligible guarantor institution. Note: The signature(s) on this Assignment must correspond with the names as written on the face of the within Bond in every particular without alteration or enlargement or any change whatsoever. On 1"00 45552289.1 A -6 AGENDA REM NO.� RACE (o 0 OF 3(a. C;_ EXHIBIT B REQUISITION NO. 1 CITY OF LAKE ELSINORE COMMUNITY FACILITIES DISTRICT NO. 2005-1 (SERENITY) REQUISITION FOR DISBURSEMENT OF PROJECT COSTS Union Bank of California, N.A. is hereby requested to pay from the Acquisition and Construction Fund of the Community Facilities District No. 2005 -1 (Serenity), established by the Fiscal Agent Agreement dated as of February 1, 2006, between the Fiscal Agent and City of Lake Elsinore Community Facilities District No. 2005 -1 (Serenity), for payment of authorized Project Costs. The amount is due and payable under purchase order, contract or other authorization and has not formed the basis of any prior request for payment. The conditions to the release of this amount from the Community Facilities District No. 2005 -1 (Serenity) Acquisition and Construction Fund are satisfied. There has not been filed with nor served upon the CFD notice of any lien, right to lien or attachment upon, or stop notice or claim affecting the right to receive payment of the amount specified above which has not been released or will not be released simultaneously with the payment of such amount, other than materialmen's or mechanic's liens accruing by mere operation of law. Dated: CITY OF LAKE ELSINORE COMMUNITY FACILITIES DISTRICT NO. 2005 -1 (SERENITY) Int Authorized Representative 45552289.1 B -1 AGENDA ITEM NO. PAGE_,Qi L OF _a2L CONTINUING DISCLOSURE AGREEMENT (City of Lake Elsinore Community Facilities District No. 2005 -1 (Serenity)) 1.410 This Continuing Disclosure Agreement (the "Disclosure Agreement "), dated as of February 1, 2006, is executed and delivered by the City of Lake Elsinore Community Facilities District No. 2005 -1 (Serenity) (the "CFD ") and Union Bank of California, N.A., as dissemination agent (the "Dissemination Agent') hereunder, in connection. with the issuance of the $ City of Lake Elsinore Community Facilities District No. 2005 -1 (Serenity) Special Tax Bonds, 2006 Series A (the "Bonds "). The Bonds are being issued pursuant to provisions of a Fiscal Agent Agreement, dated as of February 1, 2006 (the "Fiscal .Agent Agreement "), by and between the CFD and Union Bank of California, N.A., as fiscal agent (the "Fiscal Agent "). The CFD, the Fiscal Agent and the Dissemination Agent covenant and agree as follows: SECTION 1. Purpose of the Disclosure Agreement: This Disclosure Agreement is being executed and delivered by the CFD, the Dissemination Agent and the Fiscal Agent for the benefit of the Beneficial Owners of the Bonds and in order to assist the Participating Underwriter in complying with S.E.C. Rule 15c2- 12(b)(5). SECTION 2. Definitions. In addition to the definitions set forth in the Fiscal Agent Agreement, which apply to any capitalized term used in this Disclosure Agreement unless otherwise defined in this Section, the following capitalized terms shall have the following meanings: "Annual Report" shall mean any Annual Report or any addendum thereto provided by the CFD pursuant to, and as described in, Sections 3 and 4 of this Disclosure Agreement. "Beneficial Owner" shall mean any person which (a) has the power, directly or indirectly, to vote or consent with respect to, or to dispose of ownership of, any Bonds (including persons holding Bonds through nominees, depositories or other intermediaries), or (b) is treated as the owner of any Bonds for federal income tax purposes. "CFD" means City of Lake Elsinore Community Facilities District No. 2005 -1 (Serenity), a community facilities district organized and existing under the laws of the State of California, and such area of land comprising that community facilities district. "City" means the City of Lake Elsinore, California. "Disclosure Representative" shall mean the City Manager of the City of Lake Elsinore or his or her designee, or such other officer or employee as the City Council of the City of Lake Elsinore (the "Council ") shall designate in writing to the Fiscal Agent and Dissemination Agent from time to time. L�i "Dissemination Agent" shall mean the Fiscal Agent, acting in its capacity as Dissemination Agent hereunder, or any successor Dissemination Agent designated in writing by the CFD and which has filed with the Fiscal Agent a written acceptance of such designation. 45552260.1 1 AGENDA ITEM N0. PAGE ( O "Listed Events" shall mean any of the events listed in Section 5(a) of this Disclosure Agreement. "National Repository" shall mean any Nationally Recognized Municipal Securities Information Repository for purposes of the Rule. The National Repositories currently approved by the Securities and Exchange Commission are set forth in the SEC website located at http: / /www.sec.gov. "Participating Underwriter" shall mean any of the original underwriters of the Bonds required to comply with the Rule in connection with offering of the Bonds. "Repository" shall mean each National Repository and each State Repository. "Rule" shall mean Rule 1.5c2- 12(b)(5) adopted by the Securities and Exchange Commission under the Securities Exchange Act of 1934, as the same may be amended from time to time. "Special Taxes" shall mean the special taxes to be levied within the CFD. "State" shall mean the State of California. "State Repository" shall mean any public or private repository or entity designated by the State as a state repository for the purpose of the Rule and recognized as such by the Securities and Exchange Commission. As of the date of this Agreement, there is no State Repository. SECTION 3. Provision of Annual Reports. (a) The CFD shall, or shall cause the Dissemination Agent to, not later than 225 days after the end of the City's fiscal year, commencing with fiscal year ending June 30, 2006, provide to each Repository and the Participating Underwriter an Annual Report which is consistent with the requirements of Section 4 of this Disclosure Agreement. The Annual Report may be provided in electronic format to each Repository and may be provided through the services of a "Central Post Office" approved by the Securities and Exchange Commission. The Annual Report may be submitted as a single document or as separate documents comprising a package, and may include by reference other information as provided in Section 4 of this Disclosure Agreement. If the City's Fiscal Year changes, it shall give notice of such change in the same manner as for a Listed Event under Section 5(f). Furthermore, upon receipt of a written request of any Beneficiary Owner, the Dissemination Agent shall provide a copy of the Annual Report to such Beneficial Owner. (b) Not later than fifteen (15) Business Days prior to the date specified in subsection (a) for providing the Annual Report to Repositories, the CFD shall provide the Annual Report to the Dissemination Agent and the Fiscal Agent (if the Fiscal Agent is not the Dissemination Agent). If by such date, the Dissemination Agent has not received a copy of the Annual Report, the Dissemination Agent shall notify the CFD and the Fiscal Agent of such failure to receive the Annual Report. The CFD shall provide a written certification with each Annual Report furnished to the Dissemination Agent and the Fiscal Agent to the effect that such Annual Report constitutes the Annual Report required to be furnished by it hereunder. The 45552260.1 2 AGENDA ITEM NO. L- ' PAGE 0 _OF aa -6-- Dissemination Agent and Fiscal Agent may conclusively rely upon such certification of the CFD and shall have no duty or obligation to review such Annual Report. (c) If the Dissemination Agent is unable to verify that an Annual Report has been provided to Repositories by the date required in subsection (a), the Dissemination Agent shall send a notice to each Repository or to the Municipal Securities Rulemaking Board and the State Repository, if any in substantially the form attached as Exhibit A. (d) The Dissemination Agent shall: (i) determine each year prior to the date for providing the Annual Report the name and address of each National Repository and the State Repository, if any; and (ii) to the extent information is known to it, file a report with the CFD and (if the Dissemination Agent is not the Fiscal Agent) the Fiscal Agent certifying that the Annual Report has been provided pursuant to this Disclosure Agreement, stating the date it was provided and listing all the Repositories to which it was provided. SECTION 4. Content of Annual Reports. The CFD's Annual Report shall contain or include by reference the following: (i) The audited financial statements of the City, prepared in accordance with generally accepted accounting principles in effect from time to time. If the City's audited financial statements are not available by the time the Annual Report is required to be filed pursuant to Section 3(a), the Annual Report shall contain unaudited financial statements in a format similar to the financial statements contained in the Official Statement, and the audited financial statements shall be filed in the same manner as the Annual Report when they become available. (ii) The balance in the Reserve Account held under the Fiscal Agent Agreement. (iii) Total assessed valuation (per the Riverside County Assessor records) of all parcels currently subject to the Special Tax within the CFD, showing the total assessed valuation for all land and the total assessed valuation for all improvements within the CFD and distinguishing between the assessed value of developed property and undeveloped property. (iv) Identification of each parcel within the CFD for which any Special Tax payment is delinquent, together with the following information respecting each such parcel: (A) the amount delinquent; (B) the date of each delinquency; (C) in the event a foreclosure complaint has been filed respecting such delinquent parcel and such complaint has not yet been dismissed, the date on which the complaint was filed; and (D) in the event a foreclosure sale has occurred respecting such delinquent parcel, a summary of the results of such foreclosure sale. (v) The number of certificates of occupancy issued by the City within the CFD and the principal amount of prepayments of the Special Tax with respect to the CFD for the prior Fiscal Year. 45552260.1 3 AGENDA ITEM N0. PAGE,�OF 100-- (vi) A land ownership summary listing property owners responsible for more than five percent (5 %) of the annual Special Tax levy, as shown on the Riverside County Assessor's last equalized tax roll prior to the September next preceding the Annual Report date. (vii) A description of the status of the facilities being constructed with proceeds of the Bonds as of the date of the Annual Report (but only so long as such facilities are not completed). (viii) The number of building permits issued in the CFD during the prior Fiscal Year. (ix) The amount of Special Taxes generated by the developed parcels and undeveloped parcels within the CFD. Any or all of the items listed above may be included by specific reference to other documents, including official statements of debt issues of the City or related public entities, which have been submitted to each of the Repositories or the Securities and Exchange Commission. If the document included by reference is a final official statement, it must be available from the Municipal Securities Rulemaking Board. The CFD shall clearly identify each such other document so included by reference. SECTION 5. Reporting of Significant Events. (a) Pursuant to the provisions of this Section 5, the CFD shall give, or cause to be given, notice of the occurrence of any of the following events with respect to the Bonds, if �-. material: 1. principal and interest payment delinquencies; 2. non - payment related defaults; 3. modifications to rights of Bondholders; 4. optional, contingent or unscheduled bond calls; 5. defeasances; 6. rating changes; 7. adverse tax opinions or events adversely affecting the tax - exempt status of the Bonds; 8. unscheduled draws on the debt service reserves reflecting financial difficulties; 9. unscheduled draws on credit enhancements reflecting financial difficulties; 10. substitution of credit or liquidity providers, or their failure to perform; 11. release, substitution or sale of property securing repayment of the Bonds. 45552260.1 4 AGENDA ITEM N0. PAGE (o -5_0p a� �, (b) The Dissemination Agent shall, within one (1) Business Day of obtaining actual knowledge of the occurrence of any of the Listed Events, or as soon as reasonably practicable thereafter, contact the Disclosure Representative, inform such person of the event, and request that the CFD promptly notify the Dissemination Agent in writing whether or not to report the event pursuant to subsection (f) and promptly direct the Fiscal Agent whether or not to report such event to the Bondholders. In the absence of such direction the Dissemination Agent shall not report such event unless otherwise required to be reported by the Fiscal Agent to the Bondholders under the Fiscal Agent Agreement. The Dissemination Agent may conclusively rely upon such direction (or lack thereof). For purposes of this Disclosure Agreement, "actual knowledge" of the occurrence of such Listed Events shall mean actual knowledge by the officer at the corporate trust office of the Fiscal Agent or the Dissemination Agent with regular responsibility for the administration of matters related to the Fiscal Agent Agreement. Neither the Fiscal Agent nor the Dissemination Agent shall have any responsibility to determine the materiality of any of the Listed Events. (c) Whenever the CFD obtains knowledge of the occurrence of a Listed Event, whether because of a notice from the Dissemination Agent pursuant to subsection (b) or otherwise, the CFD shall as soon as possible determine if such event would be material under applicable federal securities laws. (d) If the CFD has determined that knowledge of the occurrence of a Listed Event would be material under applicable federal securities laws, the CFD shall promptly notify the Dissemination Agent in writing. Such notice shall instruct the Dissemination Agent to report the occurrence pursuant to subsection (f). (e) If in response to a request under subsection (b), the CFD determines that the Listed Event would not be material under applicable federal securities laws, the CFD shall so notify the Dissemination Agent in writing and instruct the Dissemination Agent not to report the occurrence pursuant to subsection (f). (f) If the Dissemination Agent has been instructed by the CFD to report the occurrence of a Listed Event, the Dissemination Agent shall file a notice of such occurrence with the Municipal Securities Rulemaking Board and the State Repository or the Repositories. Notwithstanding the foregoing, notice of Listed Events described in subsections (a)(4) and (5) need not be given under this subsection any earlier than the notice (if any) of the underlying event is given to Holders of affected Bonds pursuant to the Fiscal Agent Agreement. SECTION 6. Termination of Reporting Obligation. The CFD's obligations under this Disclosure Agreement shall terminate upon the legal defeasance, prior redemption or payment in full of all of the Bonds. If such termination occurs prior to the final maturity of the Bonds, the CFD shall give notice of such termination in the same manner as for a Listed Event under Section 5(f). SECTION 7. Dissemination Agent. The CFD may, from time to time, appoint or engage a Dissemination Agent to assist it in carrying out its obligations under this Disclosure Agreement, and may discharge any such Dissemination Agent, with or without appointing a successor Dissemination Agent. The Dissemination Agent shall not be responsible in any 45552260.1 5 AGENDA ITEM NO PAGE _G -OF .� manner for the content of any notice or report prepared by the CFD pursuant to this Disclosure Agreement. The initial Dissemination Agent shall be Union Bank of California, N.A. The Dissemination Agent may resign by providing thirty days written notice to the CFD and the Fiscal Agent. The Dissemination Agent shall have no duty to prepare any information report nor shall the Dissemination Agent be responsible for filing any report not provided to it by the CFD in a timely manner and in a form suitable for filing. SECTION 8. Amendment; Waiver. Notwithstanding any other provision of this Disclosure Agreement, the CFD, Dissemination Agent and the Fiscal Agent may amend this Disclosure Agreement (and the Fiscal Agent and Dissemination Agent shall agree to any amendment so requested by the CFD) provided, neither the Fiscal Agent nor the Dissemination Agent shall be obligated to enter into any such amendment that modifies or increases its duties or obligations hereunder, and any provision of this Disclosure Agreement may be waived, provided that the following conditions are satisfied: (a) If the amendment or waiver relates to the provisions of Sections 3(a), 4, or 5(a), it may only be made in connection with a change in circumstances that arises from a change in legal requirements, change in law, or change in the identity, nature or status of an obligated person with respect to the Bonds, or the type of business conducted; (b) The undertaking, as amended or taking into account such waiver, would, in the opinion of nationally recognized bond counsel, have complied with the requirements of the Rule at the time of the original issuance of the Bonds, after taking into account any amendments or interpretations of the Rule, as well as any change in circumstances; and (c) The amendment or waiver either (i) is approved by the Holders of the Bonds in the same manner as provided in the Fiscal Agent Agreement for amendments to the Fiscal Agent Agreement with the consent of Holders, or (ii) does not, in the opinion of nationally recognized bond counsel, materially impair the interests of the Holders or Beneficial Owners of the Bonds. In the event of any amendment or waiver of a provision of this Disclosure Agreement, the CFD shall describe such amendment in the next Annual Report, and shall include, as applicable, a narrative explanation of the reason for the amendment or waiver and its impact on the type (or, in the case of a change of accounting principles, on the presentation) of financial information or operating data being presented by the CFD. SECTION 9. Additional Information. Nothing in this Disclosure Agreement shall be deemed to prevent the CFD from disseminating any other information, using the means of dissemination set forth in this Disclosure Agreement or any other means of communication, or including any other information in any Annual Report or notice of occurrence of a Listed Event, in addition to that which is required by this Disclosure Agreement. If the CFD chooses to include any information in any Annual Report or notice of occurrence of a Listed Event in addition to that which is specifically required by this Disclosure Agreement, the CFD shall have no obligation under this Agreement to update such information or include it in any future Annual Report or notice of occurrence of a Listed Event. 45552260.1 6 AGENDA ITEM NNO. PAGES L__OF.� SECTION 10. Default. In the event of a failure of the CFD or the Dissemination Agent to comply with any provision of this Disclosure Agreement, the Fiscal Agent (at the written ,.001 request of any Participating Underwriter or the Holders of at least 25% aggregate principal amount of Outstanding Bonds, shall but only to the extent funds in an amount satisfactory to the Fiscal Agent have been provided to it or it has been otherwise indemnified to its satisfaction from any cost, liability, expense or additional charges and fees of the Fiscal Agent whatsoever, including, without limitation, fees and expenses of its attorneys), or any Holder or Beneficial Owner of the Bonds may take such actions as may be necessary and appropriate, including seeking mandate or specific performance by court order, to cause the CFD or Fiscal Agent, as the case may be, to comply with its obligations under this Disclosure Agreement. A default under this Disclosure Agreement shall not be deemed an Event of Default under the Fiscal Agent Agreement, and the sole remedy under this Disclosure Agreement in the event of any failure of the CFD or the Fiscal Agent to comply with this Disclosure Agreement shall be an action to compel performance. SECTION 11. Duties, Immunities and Liabilities of Fiscal Agent and Dissemination Agent. Article VII of the Fiscal Agent Agreement pertaining to the Fiscal Agent is hereby made applicable to this Disclosure Agreement as if this Disclosure Agreement were (solely for this purpose) contained in the Fiscal Agent Agreement and the Fiscal Agent and Dissemination Agent shall be entitled to the protections, limitations from liability and indemnities afforded the Fiscal Agent thereunder. The Dissemination Agent shall have only such duties as are specifically set forth in this Disclosure Agreement, and the CFD agrees to indemnify and save the Dissemination Agent, its officers, directors, employees and agents, harmless against any loss, expense and liabilities which they may incur arising out of or in the exercise or performance of its powers and duties hereunder, including the costs and expenses (including attorneys fees) of defending against any claim of liability, but excluding liabilities due to the Dissemination Agent's negligence or willful misconduct. The Dissemination Agent shall be paid compensation by the CFD for its services provided hereunder in accordance with its schedule of fees as amended from time to time and all expenses, legal fees and advances made or incurred by the Dissemination Agent in the performance of its duties hereunder. The Dissemination Agent shall have no duty or obligation to review any information provided to them hereunder and shall not be deemed to be acting in any fiduciary capacity for the CFD, the Bondholders, or any other party. The Dissemination Agent shall have no liability to the Bondholders or any other party for any monetary damages or financial liability of any kind whatsoever related to or arising from this Agreement. The obligations of the CFD under this Section shall survive resignation or removal of the Dissemination Agent and payment of the Bonds. SECTION 12. Notices. Any notices or communications to or among any of the parties to this Disclosure Agreement may be given as follows: 45552260.1 To the City: City of Lake Elsinore 130 South Main Street Lake Elsinore, California 92530 Attn: City Manager Telephone: (951) 674 -3124 Fax: (909) 674 -2392 1.901 7 AGENDA ITEM N0. PAGE (o V10F, To the Fiscal Agent: Union Bank of California, N.A. 120 South San Pedro Street, Suite 400 Los Angeles, California 90012 Attn: Corporate Trust Department Telephone: (213) 972 -5676 Fax: (213) 972 -5694 To the Dissemination Agent: Union Bank of California, N.A. 120 South San Pedro Street, Suite 400 Los Angeles, California 90012 Attn: Corporate Trust Department Telephone: (213) 972 -5676 Fax: (213) 972 -5694 Any person may, by written notice to the other persons listed above, designate a different address or telephone number(s) to which subsequent notices or communications should be sent. SECTION 13. Beneficiaries. This Disclosure Agreement shall inure solely to the benefit of the CFD, the Fiscal Agent, the Dissemination Agent, the Participating Underwriter and Holders and Beneficial Owners from time to time of the Bonds, and shall create no rights in any other person or entity. 45552260.1 8 AGENDA ITEM NO. PACE 69 OFa.1. SECTION 14. Counterparts. This Disclosure Agreement may be executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument. CITY OF LAKE ELSINORE COMMUNITY FACILITIES DISTRICT NO. 2005-1 (SERENITY) an Mayor of the City of Lake Elsinore UNION BANK OF CALIFORNIA, N.A., as Dissemination Agent and Fiscal Agent Authorized Officer 45552260.1 9 AGENDA ITEM No PACE�_OF EXHIBIT A NOTICE TO REPOSITORIES OF FAILURE TO FILE ANNUAL REPORT Name of Obligated Party: City of Lake Elsinore Community Facilities District No. 2005 -1 (Serenity) Name of Bond Issue: City of Lake Elsinore Community Facilities District No. 2005 -1 (Serenity) Special Tax Bonds, 2006 Series A Date of Issuance: , 2006 NOTICE IS HEREBY GIVEN that the CFD has not provided an Annual Report with respect to the above -named Bonds as required by the Continuing Disclosure Agreement, dated as of February 1, 2006, with respect to the Bonds. The CFD anticipates that the Annual Report will be filed by Dated: cc: Issuer 45552260.1 UNION BANK OF CALIFORNIA, N.A., on behalf of CFD A -1 AGENDA ITEM NO - -'- � PAGE 3 _0 F_� DEVELOPER CONTINUING DISCLOSURE AGREEMENT (KB Home Coastal, Inc.) This Developer Continuing Disclosure Agreement (the "Disclosure Agreement "), dated as of February 1, 2006, is executed and delivered by KB Home Coastal, Inc., a California corporation (the "Property Owner ") and Union Bank of California, N.A., as fiscal agent (the . "Fiscal Agent ") and acting in its capacity as Dissemination Agent hereunder, in connection with the issuance of the $ City of Lake Elsinore Community Facilities District No. 2005- 1 (Serenity) Special Tax Bonds, 2006 Series A (the "Bonds "). The Bonds are being issued pursuant to provisions of a Fiscal Agent Agreement, dated as of February 1, 2006 (the "Fiscal Agent Agreement "), by and between the City of Lake Elsinore Community Facilities District No. 2005 -1 (Serenity) (the "Issuer ") and the Fiscal Agent. The Property Owner, the Dissemination Agent and the Fiscal Agent covenant and agree as follows: SECTION 1. Purpose of the Disclosure Agreement. This Disclosure Agreement is being executed and delivered by the Property Owner, the Dissemination Agent and the Fiscal Agent for the benefit of the Beneficial Owners of the Bonds and in order to assist the Participating Underwriter in complying with S.E.C. Rule 15c2- 12(b)(5). SECTION 2. Definitions. In addition to the definitions set forth in the Fiscal Agent Agreement, which apply to any capitalized term used in this Disclosure' Agreement unless otherwise defined in this Section, the following capitalized terms shall have the following meanings: "Affiliate" of another Person means (a) a Person directly or indirectly owning, controlling, or holding with power to vote, five percent (5 %) or more of the outstanding voting securities of such other Person, (b) any Person whose outstanding voting securities of five percent (5 %) or more are directly or indirectly owned, controlled, or held with power to vote, by such other Person, and (c) any Person directly or indirectly controlling , controlled by, or under common control with, such other Person; for purposes hereof, control means the power to exercise a controlling influence over the management or policies of a Person, unless such power is solely the result of an official position with such Person. "Annual Report" shall mean any Annual Report or its addendum provided by the Property Owner pursuant to, and as described in, Sections 3 and 4 of this Disclosure Agreement. "Assumption Agreement" means an undertaking of a Major Owner, or an Affiliate thereof, for the benefit of the holders and beneficial owners of the Bonds containing terms substantially similar to this Disclosure Agreement (as modified for such Major Owner's development and financing plans with respect to the District), whereby such Major Owner or Affiliate agrees to provide annual reports and notices of significant events, setting forth the information described in sections 4 and 5 hereof, respectively, with respect to the portion of the property in the District owned by such Major Owner and its Affiliates and, at the option of the Property Owner or such Major Owner, agrees to indemnify the Dissemination Agent pursuant to a provision substantially in the form of Section 11 hereof. 11.0+ 45701637.1 1 AGENDA ITEM NO.r—�� PAGE_J_OF�aa �. `Beneficial Owner" shall mean any person which (a) has the power, directly or indirectly, to vote or consent with respect to, or to dispose of ownership of, any Bonds (including persons holding Bonds through nominees, depositories or other intermediaries), or (b) is treated as the owner of any Bonds for federal income tax purposes. "Disclosure Representative" shall mean of the Property Owner or his or her designee, or such other officer or employee as the Property Owner shall designate in writing to the Fiscal Agent and Dissemination Agent from time to time. "Dissemination Agent" shall mean the Fiscal Agent, acting in its capacity as Dissemination Agent hereunder, or any successor Dissemination Agent designated in writing by the Property Owner and which has filed with the Fiscal Agent a written acceptance of such designation. "District" shall mean City of Lake Elsinore Community Facilities District No. 2005 -1 (Serenity). "Listed Events" shall mean any of the events listed in Section 5(a) of this Disclosure Agreement. "Major Owner" shall mean an owner (including all Affiliates of such owner) of land in the District responsible in the aggregate for 20% or more of the annual Special Taxes. "National Repository" shall mean any Nationally Recognized Municipal Securities Information Repository for purposes of the Rule. The National Repositories currently approved by the Securities and Exchange Commission are set forth in the SEC website located at http: / /www.sec.gov. "Participating Underwriter" shall mean any of the original underwriters of the Bonds required to comply with the Rule in connection with offering of the Bonds. "Person" means an individual, a corporation, a partnership, an association, a joint stock company, a trust, any unincorporated organization or a government or political subdivision thereof. "Property" means, at the time of inquiry, all real property then -owned by Property Owner or its Affiliate within the District. "Repository" shall mean each National Repository and each State Repository. "Rule" shall mean Rule 15c2- 12(b)(5) adopted by the Securities and Exchange Commission under the Securities Exchange Act of 1934, as the same may be amended from time to time. "Special Taxes" shall mean the special taxes to be levied within the District. "State" shall mean the State of California. 45701637.1 FA AGENDA ITEM N0. PAGE 2 3_ F= "State Repository" shall mean any public or private repository or entity designated by the State as a state repository for the purpose of the Rule and recognized as such by the Securities and Exchange Commission. As of the date of this Agreement, there is no State Repository. SECTION 3. Provision of Annual Reports. (a) Property Owner shall, or, upon written direction, shall cause the Dissemination Agent to, not later than 120 days after the end of the Property Owner's fiscal year (currently ), commencing with fiscal year ending , 2006, provide to each Repository and the Participating Underwriter an Annual Report which is consistent with the requirements of Section 4 of this Disclosure Agreement with a copy to the Fiscal Agent and the Issuer. Not later than fifteen (15) Business Days prior to said date, Property Owner shall provide the Annual Report to the Dissemination Agent. Property Owner shall provide a written certification with each Annual Report furnished to the Dissemination Agent and the Fiscal Agent and the Issuer to the effect that such Annual Report constitutes the Annual Report required to be furnished by it hereunder. The Dissemination Agent, the Issuer and the Fiscal Agent may conclusively rely upon such certification of Property Owner and shall have no duty or obligation to review such Annual Report. The Annual Report may be provided in electronic format to each Repository and may be provided through the services of a "Central Post Office" approved by the Securities and Exchange Commission. The Annual Report may be submitted as a single document or as separate documents comprising a package, and may include by reference other information as provided in Section 4 of this Disclosure Agreement. If Property Owner's fiscal year changes, it shall give notice of such change in the same manner as for a Listed Event under Section 5(f). (b) If the Fiscal Agent is unable to verify that an Annual Report has been provided to Repositories by the date required in subsection (a), the Fiscal Agent shall send a notice to each Repository or to the Municipal Securities Rulemaking Board and the State Repository, if any in substantially the form attached as Exhibit A. (c) The Dissemination Agent shall: (i) determine each year prior to the date for providing the Annual Report the name and address of each National Repository and the State Repository, if any; and (ii) to the extent information is known to it, file a report with the Issuer, the Property Owner and (if the Dissemination Agent is not the Fiscal Agent) the Fiscal Agent certifying that the Annual Report has been provided pursuant to this Disclosure Agreement, stating the date it was provided and listing all the Repositories to which it was provided. SECTION 4. Content of Annual Reports. The Property Owner's Annual Report shall contain or include by reference the following: (i) A summary of the Property Owner's development activity on the Property during the Property Owner's last fiscal year: (A) number of acres /lots owned by the Property Owner or its Affiliates as of the end of the applicable fiscal year or a more recent date, (B) progress of construction activities on the Property as of the end of the applicable fiscal year or more recent ..�r 45701637.1 3 ACENCA ITEM NO. PAGE .,OF�,w„ r-� date, and (C) number of acres /lots sold by Property Owner or its Affiliates to end users or builders as of the end of the applicable fiscal year or a more recent date. (ii) Any material changes in the information relating to the Property Owner and/or the Property contained in the Official Statement under the caption "THE DISTRICT" and "BONDOWNERS' RISKS - Endangered and Threatened Species" and " - - Other Possible Claims Upon the Values of An Assessed Parcel." (iii) A description of the status of any land purchase contracts with regard to the Property (other than sales to individual homebuyers). (iv) A description of any change in the legal structure of the Property Owner and/or the financial condition of the Property Owner that would materially interfere with its ability to complete the development plan described in the Official Statement under the caption "THE DISTRICT - Description of Development" (the "Development Plan ") or to pay its Special Taxes. (v) A description of any material changes in the Development Plan. (vi) A pro forma financing statement relating to the Development Plan detailing (A) amount spent to date, (B) the remaining costs to complete the Development Plan including timing of such disbursements and (C) the source of financing for such remaining development costs. (vii) A description of any previously undisclosed material amendment to the land use entitlements for the Property. (viii) An update of the status of any previously reported Listed Event described in Section 5 hereof. (ix) A statement as to whether or not the Property Owner and all of its Affiliates paid, prior to their becoming delinquent, all Special Taxes levied on the Property and if such Property Owner or any of such Affiliates is delinquent in the payment of such Special Taxes, a statement identifying each entity that is so delinquent, specifying the amount of each such delinquency and describing any plans to resolve such delinquency. (x) A description of any material changes in the financing plan of the Property Owner for the Development Plan described in the Official Statement under the caption "THE DISTRICT - Financing Plan" (the "Financing Plan ") and the causes or rationale for such changes. Any or all of the items listed above may be included by specific reference to other documents, including official statements of debt issues of the Property Owner or related entities, which have been submitted to each of the Repositories or the Securities and Exchange Commission. If the document included by reference is a final official statement, it must be available from the Municipal Securities Rulemaking Board. The Property Owner shall clearly identify each such other document so included by reference. 45701637.1 4 AGENDA ITEM NO. PACE� OF SECTION 5. Reporting of Significant Events. (a) Pursuant to the provisions of this Section 5, the Property Owner shall give, or cause to be given, notice of the occurrence of any of the following events. with respect to the Bonds, if material: 1: bankruptcy or insolvency proceedings commenced by or against Property Owner or a partner or Affiliate thereof that would materially interfere with its ability to complete the Development Plan or to pay its Special Taxes; 2. failure to pay any taxes, special taxes or assessments due with respect to the Property prior to the delinquency date; 3. filing of a lawsuit against the Property Owner or an Affiliate thereof (with service of process against such entity having been accomplished) seeking damages, or a judgment in a lawsuit against the Property Owner or an Affiliate thereof, which could have a significant impact on the Property Owner's ability to pay Special Taxes or to sell or develop the Property; 4. any conveyance by the Property Owner of the Property to an entity that is not an Affiliate of such Property Owner, the result of which conveyance is to cause the transferee to become a Major Owner and the related assumption of any obligation by a Major Owner pursuant to Section 6; 5. any denial or termination of credit, any denial or termination of, or default N"10 under, any line of credit or loan or any other loss of a source of funds that could have a material adverse affect on the Property Owner's most recently disclosed Financing Plan or the ability of the Property Owner or any Affiliate thereof that owns any District property to pay Special Taxes when due; 6. any significant amendments to land use entitlement for the Property that would have a material adverse affect on the Property Owners' most recently disclosed Development Plan or Financing Plan or the ability of the Property Owner or any Affiliate thereof that owns any District property to pay Special Taxes when due; 7. any previously undisclosed governmentally- imposed preconditions to commencement or continuation of development of the Property that would have a material adverse affect on the Property Owners' most recently disclosed Development Plan or Financing Plan or the ability of the Property Owner or any affiliate thereof that owns any District property to pay Special Taxes when due; 8. any previously undisclosed legislative, administrative or judicial challenges to development of the Property that would have a material adverse affect on the Property Owner's most recently disclosed Development Plan or Financing Plan or the ability of the Property Owner or any Affiliate thereof that owns any District property to pay Special Taxes when due; 45701637.1 5 AGENDA ITEM N0. V PAGE & OF Ao�l 9. any material change in the alignment, design or likelihood of completion of significant public improvement being constructed by the Property Owner affecting the Property, including major thoroughfares, sewers, water conveyance systems and similar facilities; and (b) The Fiscal Agent shall, within one (1) Business Day of obtaining actual knowledge of the occurrence of any of the Listed Events, or as soon as reasonably practicable thereafter, contact the Disclosure Representative, inform such person of the event, and request that the Property Owner promptly notify the Dissemination Agent in writing whether or not to report the event pursuant to subsection (f) and promptly direct the Fiscal Agent whether or not to report such event to the Bondholders. In the absence of such direction, the Fiscal Agent shall not report such event unless such event is otherwise required to be reported by the Fiscal Agent to the Bondholders under the Fiscal Agent Agreement. The Fiscal Agent may conclusively rely upon such direction (or lack thereof). For purposes of this Disclosure Agreement, "actual knowledge" of the occurrence of such Listed Events shall mean actual knowledge by the officer at the corporate trust office of the Fiscal Agent with regular responsibility for the administration of matters related to the Fiscal Agent Agreement. The Fiscal Agent shall have no responsibility to determine the materiality of any of the Listed Events. (c) Whenever the Property Owner obtains knowledge of the occurrence of a Listed Event, whether because of a notice from the Fiscal Agent pursuant to subsection (b) or otherwise, the Property Owner shall as soon as possible determine if such event would be material under applicable federal securities laws. . (d) If the Property Owner has determined that knowledge of the occurrence of a Listed Event would be material under applicable federal securities laws, the Property Owner shall promptly notify the Dissemination Agent in writing. Such notice shall instruct the Dissemination Agent to report the occurrence pursuant to subsection (f). (e) If in response to a request under subsection (b), the Property Owner determines that the Listed Event would not be material under applicable federal securities laws, the Property Owner shall so notify the Dissemination Agent in writing and instruct the Dissemination Agent not to report the occurrence pursuant to subsection (f). (f) If the Dissemination Agent has been instructed by the Property Owner to report the occurrence of a Listed Event, the Dissemination Agent shall file a notice of such occurrence with the Municipal Securities Rulemaking Board and the State Repository or the Repositories. SECTION 6. Duration of Reporting Obligation. (a) All of the Property Owner's obligations hereunder shall commence on such date as the Property is responsible for payment of 20% or more of the Special Taxes and shall terminate (except as provided in Section 11) upon (i) the legal defeasance, prior redemption or payment in full of all the Bonds, (ii) so long as the Bonds are outstanding, at such time as the Property is no longer responsible for payment of 20% or more of the Special Taxes or (iii) the date on which all Special Taxes levied on the Property are paid or prepaid in full. Upon the occurrence of any such termination or suspension prior to 45701637.1 6 Ln AGENDA ITEM NO. X I PAGE__OF a the final maturity of the Bonds, the Property Owner shall give notice of such termination or suspension in the same manner as for a Listed Event under Section 5. (b) If a portion of the Property is conveyed to a Person that, upon such conveyance, will be a Major Owner, the obligations of Property Owner hereunder with respect to such property shall be assumed by such Major Owner or by an Affiliate thereof and the Property Owner obligations hereunder will be terminated. In order to effect such an assumption, such Major Owner or Affiliate shall enter into an Assumption Agreement. The entering into an Assumption Agreement by such Major Owner or Affiliate shall be a condition precedent to the conveyance of such property and the Property Owner shall provide a copy of the executed Assumption Agreement to the Fiscal Agent and the Issuer prior to such conveyance. SECTION 7. Dissemination Agent. The Property Owner may, from time to time, appoint or engage a Dissemination Agent to assist it in carrying out its obligations under this Disclosure Agreement, and may discharge any such Dissemination Agent, with or without appointing a successor Dissemination Agent. The Dissemination Agent shall not be responsible in any manner for the content of any notice or report prepared by the Property Owner pursuant to this Disclosure Agreement. The Dissemination Agent may resign by providing thirty days written notice to the Property Owner, the Issuer and the Fiscal Agent. The Dissemination Agent shall have no duty to prepare any information report nor shall the Dissemination Agent be responsible for filing any report not provided to it by the Property Owner in a timely manner and in a form suitable for filing. SECTION 8. Amendment; Waiver. Notwithstanding any other provision of this Disclosure Agreement, the Property Owner, the Dissemination Agent and the Fiscal Agent may amend this Disclosure Agreement (and the Fiscal Agent and the Dissemination Agent shall agree to any amendment so requested by the Property Owner) provided, neither the Fiscal Agent nor the Dissemination Agent shall be obligated to enter into any such amendment that modifies or increases its duties or obligations hereunder, and any provision of this Disclosure Agreement may be waived, provided that the following conditions are satisfied: (a) If the amendment or waiver relates to the provisions of Sections 3(a), 4, or 5(a), it may only be made in connection with a change in circumstances that arises from a change in legal requirements, change in law, or change in the identity, nature or status of an obligated person with respect to the Bonds, or the type of business conducted; (b) The undertaking, as amended or taking into account such waiver, would, in the opinion of nationally recognized bond counsel, have complied with the requirements of the Rule at the time of the original issuance of the Bonds, after taking into account any amendments or interpretations of the Rule, as well as any change in circumstances; and (c) The amendment or waiver either (i) is approved by the Holders of the Bonds in the same manner as provided in the Fiscal Agent Agreement for amendments to the Fiscal Agent Agreement with the consent of Holders, or (ii) does not, in the opinion of nationally recognized bond counsel, materially impair the interests of the Holders or Beneficial Owners of the Bonds. 45701637.1 W AGENDA ITEM N0. PAGE 3L OF r../ .�� In the event of any amendment or waiver of a provision of this Disclosure Agreement, the Property Owner shall describe such amendment in the next Annual Report, and shall include, as applicable, a narrative explanation of the reason for the amendment or waiver and its impact on the type (or, in the case of a change of accounting principles, on the presentation) of financial information or operating data being presented by the Property Owner. SECTION 9. Additional Information. Nothing in this Disclosure Agreement shall be deemed to prevent the Property Owner from disseminating any other information, using the means of dissemination set forth in this Disclosure Agreement or any other means of communication, or including any other information in any Annual Report or notice of occurrence of a Listed Event, in addition to that which is required by this Disclosure Agreement. If the Property Owner chooses to include any information in any Annual Report or notice of occurrence of a Listed Event in addition to that which is specifically required by this Disclosure Agreement, the Property Owner shall have no obligation under this Agreement to update such information or include it in any future Annual Report or notice of occurrence of a Listed Event. SECTION 10, Default. In the event of a failure of the Property Owner or the Fiscal Agent to comply with any provision of this Disclosure Agreement, the Fiscal Agent (at the written request of any Participating Underwriter or the Holders of at least 25% aggregate principal amount of Outstanding Bonds, shall but only to the extent funds in an amount satisfactory to the Fiscal Agent have been provided to it or it has been otherwise indemnified to its satisfaction from any cost, liability, expense or additional charges and fees of the Fiscal Agent whatsoever, including, without limitation, fees and expenses of its attorneys), or any Holder or Beneficial Owner of the Bonds may take such actions as may be necessary and appropriate, including seeking mandate or specific performance by court order, to cause the Property Owner or Fiscal Agent, as the case may be, to comply with its obligations under this Disclosure Agreement. A default under this Disclosure Agreement shall not be deemed an Event of Default under the Fiscal Agent Agreement, and the sole remedy under this Disclosure Agreement in the event of any failure of the Property Owner or the Fiscal Agent to comply with this Disclosure Agreement shall be an action to compel performance. SECTION 11. Duties, Immunities and Liabilities of Fiscal Agent and Dissemination Agent. Article VII of the Fiscal Agent Agreement pertaining to the Fiscal Agent is hereby made applicable to this Disclosure Agreement as if this Disclosure Agreement were (solely for this purpose) contained in the Fiscal Agent Agreement and the Fiscal Agent and Dissemination Agent shall be entitled to the protections, limitations from liability and indemnities afforded the Fiscal Agent thereunder. The Dissemination Agent and the Fiscal Agent shall have only such duties as are specifically set forth in this Disclosure Agreement, and the Property Owner agrees to indemnify and save the Dissemination Agent and Fiscal Agent, their officers, directors, employees and agents (the "Indemnified Party "), harmless against any loss, expense and liabilities which they may incur arising out of or in the reasonable exercise or performance of its powers and duties hereunder, including the reasonable costs and expenses (including attorneys fees) of defending against any claim of liability, but excluding losses, expenses or liabilities due to any Indemnified Party's respective negligence or willful misconduct. The Dissemination Agent shall be paid compensation by the Property Owner for its services provided hereunder in accordance with its schedule of fees as amended from time to time and all reasonable expenses, legal fees and advances made or incurred by the Dissemination Agent in the performance of its 45701637.1 8 AGENDA ITEM N0. PAGE - duties hereunder. The Dissemination Agent and the Fiscal Agent shall have no duty or obligation to review any information provided to them hereunder and shall not be deemed to be acting in any fiduciary capacity for the Property Owner, the Bondholders, or any other party. Neither the Fiscal Agent or the Dissemination Agent shall have any liability to the Bondholders or any other party for any monetary damages or financial liability of any kind whatsoever related to or arising from this Agreement. The obligations of the Property Owner under this Section shall survive resignation or removal of the Dissemination Agent and payment of the Bonds. SECTION 12. Notices. Any notices or communications to or among any of the parties to this Disclosure Agreement may be given as follows: To the Issuer: City of Lake Elsinore Community Facilities District No. 2005 -1 (Serenity) c/o City of Lake Elsinore 130 S. Main Street Lake Elsinore, California 92530 Attn: City Manager Telephone: (951) 674 -3124 Facsimile: (951) 674 -2392 To the Fiscal Agent: Union Bank of California, N.A. 120 S. San Pedro Street, 4th Floor Los Angeles, California 90012 Attn: Corporation Trust Department Telephone: (213) 972 -5676 `, W Facsimile: (213) 972 -5694 To the Dissemination Agent: Union Bank of California, N.A. 120 S. San Pedro Street, 4th Floor Los Angeles, California 90012 Attn: Corporation Trust Department Telephone: (213) 972 -5676 Facsimile: (213) 972 -5694 To the Property Owner: KB Home Coastal, Inc. — Riverside Division 26201 Ynez Road, Suite 104 Temecula, California 92591 Attn: Scott Hansen Telephone: (951) 587 -3339 Facsimile: (951) 506 -1722 Any person may, by written notice to the other persons listed above, designate a different address or telephone number(s) to which subsequent notices or communications should be sent. SECTION 13. Beneficiaries. This Disclosure Agreement shall inure solely to the benefit of the Issuer, the Property Owner, the Fiscal Agent, the Dissemination Agent, the Participating 45701637.1 9 AGENDA ITEM NO. `rt 1 PACE _,�Q_OF, to-- Underwriter and Holders and Beneficial Owners from time to time of the Bonds, and shall create no rights in any other person or entity. 10--- SECTION 14. Counterparts. This Disclosure Agreement may be executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument. KB HOME COASTAL, INC., a California corporation By Its: UNION BANK OF CALIFORNIA, N.A., as Dissemination Agent and Fiscal Agent Authorized Officer 45701637.1 10 ADEN ®A ITEM NO. Qnl PAGE OF EXHIBIT A NOTICE TO REPOSITORIES OF FAILURE TO FILE ANNUAL REPORT Name of Obligated Party: KB Home Coastal, Inc. Name of Bond Issue: City of Lake Elsinore Community Facilities District No. 2005 -1 (Serenity Special Tax Bonds, 2006 Series A Date of Issuance: , 2006 NOTICE IS HEREBY GIVEN that the Property Owner has not provided an Annual Report with respect to the above -named Bonds as required by the Developer Continuing Disclosure Agreement, dated as of February 1, 2006, with respect to the Bonds. [The Property Owner anticipates that the Annual Report will be filed by .1 Dated: cc: Issuer Property Owner 45701637.1 UNION BANK OF CALIFORNIA, N.A., on behalf of Property Owner A -1 AGENDA ITEM NO. PAGE_ OF City of Lake Elsinore Community Facilities District No. 2005 -1 (Serenity) Special Tax Bonds, 2006 Series A Purchase Contract , 2006 City of Lake Elsinore Community Facilities District No. 2005 -1 (Serenity) 130 South Main Street Lake Elsinore, California 92530 Ladies and Gentlemen: Southwest Securities, Inc. (the "Underwriter ") hereby offers to enter into the following agreement with the City of Lake Elsinore Community Facilities District No. 2005 -1 (Serenity) (the "District "). Upon the acceptance hereof by you, this offer will be binding upon the District and the Underwriter. This offer is made subject to (i) the written acceptance hereof by you and (ii) withdrawal by the Underwriter upon written notice (by facsimile or otherwise) delivered to you at any time prior to the acceptance hereof by you. 1. Purchase and Sale. Upon the terms and conditions and upon the basis of the representations, warranties and agreements set forth herein, the Underwriter hereby agrees to purchase from the District, at the Closing Time on the Closing Date (both as defined herein), and the District hereby agrees to sell and deliver to the Underwriter, $ aggregate principal amount of its Special Tax Bonds, 2006 Series A (the "Bonds "). The Bonds shall be dated the date of their initial delivery, and shall mature on September 1 in the years shown on Exhibit A hereto, shall bear interest at the rates shown on Exhibit A hereto and shall be subject to mandatory redemption from sinking fund payments, in the amounts and on the dates shown in the Fiscal Agent Agreement. Interest on the Bonds shall be payable each March 1 and September 1 to maturity or earlier redemption of the Bonds, beginning September 1, 2006. The purchase price for the Bonds shall be an amount equal to $ (being the aggregate principal amount thereof ($ , less an underwriter's discount of $ and less an original issue discount of $ ). (The date of such payment and delivery is referred to herein as the "Closing Date," the hour and date of such delivery and payment is referred to herein as the "Closing Time," and the other actions contemplated hereby to take place at the time of such payment and delivery being herein sometimes called the "Closing "). 2. The Bonds. The Bonds shall be described in, and shall be issued and secured pursuant to, the provisions of the Constitution and the laws of the State of California including the provisions of the Mello -Roos Community Facilities Act of 1982, as amended, constituting Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California (the 45701782.1 1 AGENDA ITEM NO. PAGE_M&7. _ OF "Bond Law ") and a Fiscal Agent Agreement, dated as of February 1, 2006 (the "Fiscal Agent Agreement "), by and between the District and Union Bank of California, N.A., as fiscal agent (the "Fiscal Agent "), authorizing the issuance of the Bonds. The Bonds are being issued for the purpose of financing the acquisition of certain public facilities and capital fees to meet the needs of new development within the District, funding a reserve account for the Bonds, funding the cost of capitalized interest through September 1, 2006, and paying the costs of incidental expenses incurred in connection with financing such public facilities and forming and administering the District (collectively, the "Project "). The Bonds are secured by Special Taxes (as defined in the Fiscal Agent Agreement). The Bonds shall be payable and shall be subject to redemption as provided in the Fiscal Agent Agreement and shall be as described in the Preliminary Official Statement of the District dated January , 2006 (the "Preliminary Official Statement ") and the Official Statement of the District dated of even date herewith. Such Official Statement, including the.cover page and the appendices thereto, relating to the Bonds, as amended to conform to the terms of this Purchase Contract and with such changes and amendments thereto as have been mutually agreed to by the District and the Underwriter, are hereinafter referred to as the "Official Statement." This Purchase Contract, the Fiscal Agent Agreement and the Continuing Disclosure Agreement, dated as of February 1, 2006 (the "District Continuing Disclosure Agreement "), by and between the District and Union Bank of California, N.A., as dissemination agent, are referred to herein as the "Basic Documents." 3. Offering by the Underwriter. It shall be a condition to the District's obligations to sell and to deliver the Bonds to the Underwriter and to the Underwriter's obligation to purchase, to accept delivery of and to pay for the Bonds that the entire principal amount of the Bonds shall be issued, sold and delivered by the District and purchased, accepted and paid for by the Underwriter at the Closing. It is understood that the Underwriter proposes to offer the Bonds for sale to the public (which may include selected dealers) at prices or yields as set forth on the cover page of the Official Statement. Concessions from the public offering price may be allowed to selected dealers. It is understood that the initial public offering price and concessions set forth in the Official Statement may vary .after the initial public offering. It is further understood that the Bonds may be offered to the public at prices other than the par value thereof. The net premium on the sale of the Bonds to the public, if any, shall accrue to the benefit of the Underwriter. 4. Official Statement, Delivery of Other Documents, Use of Documents. (a) The District hereby authorizes the use by the Underwriter of the Preliminary Official Statement and the Official Statement (including any supplements or amendments thereto) and the Fiscal Agent Agreement and the information therein contained, in connection with the public offering and sale of the Bonds. (b) The District shall deliver to the Underwriter, within seven business days from the date hereof, such number of copies of the final Official Statement executed on behalf of and approved for distribution by the District as the Underwriter may reasonably request in order 45701782.1 2 t r AGENDA ITEM NO. `-� PAGE�OF 5 for the Underwriter to comply with the rules of the Municipal Securities Rulemaking Board and Rule 15c2- 12(b)(4) under the Securities Exchange Act of 1934. (c) As soon as practicable following receipt thereof, the Underwriter shall deliver the Official Statement, and any supplements or amendments thereto, to a nationally recognized municipal securities information repository. 5. Representations, Warranties and Agreements of the District. The District represents, warrants and agrees as follows: (a) The District is a community facilities district duly organized and, validly existing under the laws of the State of California. (b) The District has full legal right, power and authority (i) to enter into the Basic Documents, (ii) to sell, issue and deliver the Bonds to the Underwriter as provided herein, and (iii) to carry out and consummate the transactions on its part contemplated by the Basic Documents and the Official Statement. (c) By all necessary official action, the- City of Lake Elsinore (the "City "), as the legislative body of the District, has duly authorized and approved the Basic Documents, has duly authorized and approved the Preliminary Official Statement and the Official Statement, has duly authorized and approved the execution and delivery of, and the performance by the District of the obligations in connection with the issuance of the Bonds on its part contained in the Bonds and the Basic Documents, and the consummation by it of all other transactions contemplated by the Basic Documents in connection with the issuance of the Bonds. (d) To the best of its knowledge, the District is not in any material respect in breach of or default under any applicable constitutional provision, law or administrative regulation of any state or of the United States, or any agency or instrumentality of either, or any applicable judgment or decree, or any loan agreement, indenture, bond, note, resolution, agreement (including, without limitation, the Fiscal Agent Agreement) or other instrument to which the District is a party which breach or default has or may have an adverse effect on the ability of the District to perform its obligations under the Fiscal Agent Agreement, and no event has occurred and is continuing which with the passage of time or the giving of notice, or both, would constitute such a default or event of default under any such instrument; and the execution and delivery of the Bonds and the Basic Documents, and compliance with the provisions on the District's part contained therein, will not conflict in any material way with or constitute a material breach of or a material default under any constitutional provision, law, administrative regulation, judgment, decree, loan agreement, indenture, bond, note, resolution, agreement or other instrument to which the District is a party nor will any such execution, delivery, adoption or compliance result in the creation or imposition of any lien, charge or other security interest or encumbrance of any nature whatsoever upon any of the property or assets of the District or under the terms of any such law, regulation or instrument, except as provided by the Bonds and the Fiscal Agent Agreement. (e) To the best of its knowledge, all authorizations, approvals, licenses, permits, consents and orders of any governmental authority, legislative body, board, agency or 4570 1 782.1 3 AGENDA ITEM NO - pgGE,�OF.� commission having jurisdiction of the matter which are required for the due authorization by, or which would constitute a condition precedent to or the absence of which would materially adversely affect the due performance by, the District of its obligations in connection with the issuance of the Bonds under the Basic Documents have been duly obtained, except for such approvals, consents and orders as may be required under the Blue Sky or securities laws of any state in connection with the offering and sale of the Bonds; except as described in or contemplated by the Official Statement, all authorizations, approvals, licenses, permits, consents and orders of any governmental authority, board, agency or commission having jurisdiction of the matters which are required for the due authorization by, or which would constitute a condition precedent to or the absence of which would materially adversely affect the due performance by, the District of its obligations under the Fiscal Agent Agreement have been duly obtained. (f) The Bonds when issued will conform to the descriptions thereof contained in the Official Statement under the captions "INTRODUCTORY STATEMENT" and "THE BONDS "; and the Basic Documents when executed and delivered will conform to the descriptions thereof contained in the Official Statement under the captions "INTRODUCTORY STATEMENT," "THE BONDS," "SOURCES OF PAYMENT FOR THE BONDS," "SUMMARY OF THE FISCAL AGENT AGREEMENT" and "APPENDIX A — DEFINITIONS OF CERTAIN TERMS USED IN THE FISCAL AGENT AGREEMENT." (g) The Bonds, when issued, authenticated and delivered in accordance with the Fiscal Agent Agreement, and sold to the Underwriter as provided herein, will be validly issued and outstanding obligations of the District, entitled to the benefits of the Fiscal Agent Agreement, and upon such issuance and delivery, the Fiscal Agent Agreement will provide, for the benefit of the owners from time to time of the Bonds, the legally valid and binding pledge of and lien and security interest it purports to create. (h) As of the date hereof, there is no action, suit, proceeding, inquiry or investigation, notice of which has been served on the District, at law or in equity before or by any court, government agency, public board or body, pending or to the best knowledge of the officer of the City executing this Purchase Contract on behalf of the District, threatened against the District, affecting the existence of the District, or affecting or seeking to prohibit, restrain or enjoin the sale, issuance or delivery of the Bonds or the pledge and lien on the Special Taxes pursuant to the Fiscal Agent Agreement, or contesting or affecting as to the District the validity or enforceability of the Bond Law, the Bonds or the Basic Documents, or contesting the tax - exempt status of interest on the Bonds, or contesting the completeness or accuracy of the Preliminary Official Statement or the Official Statement, or contesting the powers of the District for the issuance of the Bonds, or the execution and delivery or adoption by the District of the Basic Documents, or in any way contesting or challenging the consummation of the transactions contemplated hereby or thereby; nor, to the best knowledge of the District, is there any basis for any such action, suit, proceeding, inquiry or investigation, wherein an unfavorable decision, ruling or finding would materially adversely affect the validity of the Bond Law, as to the District, or the authorization, execution, delivery or performance by the District of the Bonds or the Basic Documents. ..i 45701782.1 4 AGENDA ITEM N0. 4q PAGE2-(a_oF.� �..� (i) The District will furnish such information, execute such instruments and take such other action in cooperation with the Underwriter as the Underwriter may reasonably request in order (x) to qualify the Bonds for offer and sale under the Blue Sky or other securities laws and regulations of such states and other jurisdictions of the United States as the Underwriter may designate, (y) to determine the eligibility of the Bonds for investment under the laws of such states and other jurisdictions, and will use its best efforts to continue such qualifications in effect so long as required for the distribution of the Bonds; provided, however, that the District shall not be required to execute a general or special consent to service of process or qualify to do business in connection with any such qualification or determination in any jurisdiction, provided, that the Underwriter shall bear all costs in connection with the District's action under (x) and (y) herein, and (z) assure or maintain the tax - exempt status of the interest on the Bonds. 0) As of the date thereof, the Preliminary Official Statement does not, except for the omission of certain information permitted to be omitted in accordance with Rule 15c2 -12 of the Securities and Exchange Commission promulgated under the Securities Exchange Act of 1934 (the "Rule "), contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements therein with respect to the District, in light of the circumstances under which they were made, not misleading. (k) At the time of the District's acceptance hereof, and (unless an event occurs of the nature described in paragraph (m) of this Section 5) at all times subsequent thereto up to and including the date of the Closing, the Official Statement does not and will not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements therein, in light of the circumstances under which they were made, not misleading; provided, however, that these representations and warranties of the District shall apply only to the information contained in the Official Statement relating to the District. (1) If the Official Statement is supplemented or amended pursuant to paragraph (m) of this Section 5, at the time of each supplement or amendment thereto and (unless subsequently again supplemented or amended pursuant to such paragraph) at all times subsequent thereto up to and including the date of the Closing, the Official Statement as so supplemented or amended will not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements therein, in light of the circumstances under which they were made, not misleading; provided, however, that these representations and warranties of the District shall apply only to the information contained in the Official Statement relating to the District. (m) If between the date of this Purchase Contract and that date which is 25 days after the end of the underwriting period (as determined in accordance with Section 13 hereof) any event known to the District shall occur affecting the District which might adversely affect the marketability of the Bonds or the market prices thereof, or which might cause the Official Statement, as then supplemented or amended, to contain any untrue statement of a material fact or to omit to state a material fact necessary to make the statements therein, in light of the circumstances under which they were made, not misleading, the District shall notify the Underwriter thereof, and if in the opinion of the Underwriter such event requires the preparation and publication of a supplement or amendment to the Official Statement, the District will at its expense prepare and furnish to the Underwriter a reasonable number of copies of such 45701782.1 5 AGENDA ITEM N0. PAGE —9-7—OF supplement to, or amendment of, the Official Statement in a form and in a manner approved by the Underwriter. (n) The District will refrain from taking any action, or permitting any action to be taken, with regard to which the District may exercise control, that results in the loss of the tax - exempt status of the interest on the Bonds. (o) Any certificate signed by any officer of the City on behalf of the District and delivered to the Underwriter pursuant to the Fiscal Agent Agreement, this Purchase Contract or any document contemplated thereby shall be deemed a representation and warranty by the District to the Underwriter as to the statements made therein. (p) The District will cause the proceeds from the sale of the Bonds to be paid to the Fiscal Agent for the purposes specified in the Fiscal Agent Agreement and the Official Statement. So long as any of the Bonds are outstanding and except as may be authorized by the Fiscal Agent Agreement, the District will not issue or sell any bonds or other obligations, other than the Bonds sold thereby, the interest on and premium, if any, or principal of which will be payable from the payments to be made under the Fiscal Agent Agreement. (q) The District shall honor all other covenants on its part contained in the Fiscal Agent Agreement which are incorporated herein and made a part of this Purchase Contract. (r) At or prior to the Closing, the City, acting as the legislative body of the District, shall have duly authorized, and the District shall have duly executed and delivered, the District Continuing Disclosure Agreement which shall comply with the provisions of the Rule and shall be substantially in the form appended to the Official Statement in Appendix E thereto. 6. Closing. At 8:00 a.m., Los Angeles time, on , 2006, or on such earlier date or as soon thereafter as practicable, as may be mutually agreed upon by the District and the- Underwriter, the District will, subject to the terms and conditions hereof, cause the Fiscal Agent to deliver to the Underwriter, the Bonds, in definitive form duly authenticated by the Fiscal Agent, together with the other documents hereinafter mentioned; and the Underwriter will accept such delivery and will pay the purchase price of the Bonds as set forth in Section 1 hereof by delivering federal or other immediately available funds in the amount of such purchase price to the Fiscal Agent. The Bonds shall be prepared in fully registered form without coupons in authorized denominations. 7. Closing Conditions. The Underwriter has entered into this Purchase Contract in reliance upon the representations and warranties of the District contained herein, and in reliance upon the representations and warranties to be contained in the documents and instruments to be delivered at the Closing and upon the performance by the District of its obligations hereunder, both as of the date hereof and as of the date of the Closing. Accordingly, the Underwriter's obligations under this Purchase Contract to purchase, to accept delivery of and to pay for the Bonds shall be conditioned upon the performance. by the District of its obligations to be performed hereunder and under such documents and instruments at or prior to the Closing, and shall also be subject to the following additional conditions: ' "Wo ../ 45701782.1 6 AGENDA ITEM N0. PAGE K 7 OF CJ J r (a) The representations and warranties of the District contained herein shall be true, complete and correct on the date hereof and on and as of the date of the Closing, as if made on the date of the Closing; (b) At the time of the Closing, the Fiscal Agent Agreement shall be in full force and effect in accordance with its terms and shall not have been amended, modified or supplemented and the Official Statement shall not have been supplemented or amended, except in any such case as may have been agreed to by the Underwriter; (c) At the time of the Closing, all necessary official action of the City on behalf of the District and of the other parties thereto relating to the Basic Documents shall have been taken and shall be in full force and effect and shall not have been amended, modified or supplemented in any material respect; (d) Subsequent to the date hereof, there shall not have occurred any change in or affecting particularly the District or the Bonds, as the foregoing matters are described in the Official Statement, which in the reasonable opinion of the Underwriter materially impairs the investment quality of the Bonds; (e) At or prior to the Closing, the Underwriter shall have received copies of each of the following documents: (1) The Official Statement and each supplement or amendment, if any, thereto, executed by the District; (2) A copy of the Fiscal Agent Agreement, executed by the District and the Fiscal Agent; (3) A copy of this Purchase Contract, executed by the District and the Underwriter; (4) Certificates of the District with respect to the matters described in Section 5 and in paragraphs (a), (b), (c) and (d) of this Section 7; (5) An opinion (the "Final Approving Legal Opinion "), dated the date of the Closing and addressed to the District, of Fulbright & Jaworski L.L.P., Bond Counsel for the District, substantially in the form set forth in Appendix F to the Official Statement; (6) A supplemental opinion, dated the date of the Closing and addressed to the Underwriter, of Fulbright & Jaworski L.L.P., Bond Counsel for the District, in substantially the form attached hereto as Exhibit B; (7) An opinion, dated the date of the Closing and addressed to the Underwriter, of the City Attorney of the City, as Special Counsel for the District in substantially the form attached hereto as Exhibit C; 45701782.1 7 AGENDA ITEM N0. PACE J_OF (8) A reliance letter, dated the date of the Closing and addressed to the Underwriter and the Fiscal Agent, respectively, of Fulbright & Jaworski L.L.P., Bond Counsel for the District, regarding the final approving opinion; (9) An opinion, dated the date of the Closing and addressed to the Underwriter, of Fulbright & Jaworski, L.L.P., Disclosure Counsel, in substantially the form attached hereto as Exhibit D; (10) Transcripts of all proceedings relating to the authorization and issuance of the Bonds certified by the City Clerk or a Deputy City Clerk of the City on behalf of the District; (11) An opinion of counsel to the Fiscal Agent, to the effect that: (i) Due Organization and Existence - the Fiscal Agent has been duly organized and is validly existing and in good standing under the laws of the United States of America, with full corporate power to undertake the trust duties and obligations under the Fiscal Agent Agreement; (ii) Corporate Action - the Fiscal Agent has duly authorized, executed and delivered the Fiscal Agent Agreement, and by all proper corporate action has authorized the acceptance of the duties and obligations of the Fiscal Agent under the Fiscal Agent Agreement and to authorize in such capacity the authentication and delivery of the Bonds; (iii) Due Authorization, Execution and Delivery - assuming due N"001 authorization, execution and delivery by the District, the Fiscal Agent Agreement is the valid, legal and binding agreement of the Fiscal Agent, enforceable in accordance with its. terms, except as such enforcement may be limited by bankruptcy, insolvency, reorganization or other similar laws affecting the enforcement of creditors' rights in general and by general equity principles (regardless of whether such enforcement is considered in a proceeding in equity or at law); and (iv) Consents - exclusive of federal or state .securities laws and regulations, to the best of such counsel's knowledge after reasonable inquiry and investigation, other than routine filings required to be made with governmental agencies in order to preserve the Fiscal Agent's authority to perform a trust business (all of which routine filings such counsel believes, after reasonable inquiry and investigation, to have been made), no consent, approval, authorization or other action by any governmental or regulatory authority having jurisdiction over the Fiscal Agent is or will be required for the execution by the Fiscal Agent of the Fiscal Agent Agreement or the authentication and delivery of the Bonds; (12) A certified copy of the general resolution of the Fiscal Agent authorizing the execution and delivery of certain documents by certain officers of the Fiscal Agent, which resolution authorizes the execution and delivery of the Fiscal Agent Agreement; On 45701782.1 8 AGENDA ITEM pAGE OF (13) A certificate of the Fiscal Agent, dated the date of Closing, certifying that, subject to the limitations provided herein, the Fiscal Agent represents and warrants and agrees with the Underwriter that as of the date of Closing: (i) Due Organization and Existence - the Fiscal Agent is duly organized and existing as a national banking association in good standing under the laws of the United States of America having the full power and authority to enter into and perform its duties under the Fiscal Agent Agreement and to authenticate and deliver the Bonds to the Underwriter pursuant to the terms of the Fiscal Agent Agreement; (ii) No Conflict - to the best of the knowledge of the Fiscal Agent, after due investigation, the execution and delivery by the Fiscal Agent of the Fiscal Agent Agreement and the authentication and delivery by the Fiscal Agent of the Bonds, and compliance with the terms thereof will not, in any material respect, conflict with, or result in a violation or breach of, or constitute a default under, any loan agreement, indenture, bond, note, resolution or any other agreement or instrument to which the Fiscal Agent is a party or by which it is bound, or any law or any rule, regulation, order or decree of any court or governmental agency or body having jurisdiction over the Fiscal Agent or any of its activities or properties, or result in the creation or imposition of any lien, charge or other security interest or encumbrance of any nature whatsoever upon any of the property or assets of the Fiscal Agent; and (iii) No Litigation - to the best of the knowledge of the Fiscal Agent, no litigation has been served upon the Fiscal Agent to restrain or enjoin the Fiscal Agent's participation in, or in any way contesting the powers of the Fiscal Agent with respect to, the transactions contemplated by the Fiscal Agent Agreement; (14) Executed copies of the District Continuing Disclosure Agreement substantially in the form presented in Appendix E to the Official Statement; (15) Executed copies of the Developer Continuing Disclosure Agreement, dated as of February 1, 2006, by and between KB Home Coastal, Inc., a California corporation (the "Developer "), and Union Bank of California, N.A., as dissemination agent, substantially in the form presented in Appendix E to the Official Statement; (16) A certificate or certificates dated the date hereof from the Developer, together with a bring -down certificate dated the Closing Date in substantially the forms attached hereto as Exhibit E and Exhibit F, respectively; (17) Certificate of good standing of the Developer from the Secretary of State's office; (18) An opinion of counsel to the Developer in the. form acceptable to the Underwriter; (19) A certificate dated the Closing Date, signed by an authorized principal of Harris Realty Appraisal (the "Appraiser "), in a form satisfactory to the Underwriter and its counsel to the effect that i the individual signing gning the certificate is an authorized representative of the Appraiser, and as such, is familiar with the facts certified and is authorized 45701782.1 9 AGENDA ITEM N0. PAGE 0 and qualified to certify the same; (ii) in the opinion of the Appraiser the assumptions made in the appraisal report with respect to the City of Lake Elsinore Community Facilities District No 2005- 1 (Serenity), dated (the "Appraisal "), are reasonable; (iii) that the Appraiser is not aware of any event or act which has occurred since the date of the Appraisal which, in its opinion, would materially and adversely affect the conclusion as to the appraised value reached in the Appraisal; (iv) the Appraiser consents to the reproduction of the Appraisal as Appendix C to the Official Statement and to the references to the Appraiser and the Appraisal made in the Official Statement; (v) that the Official Statement has been reviewed on behalf of the Appraiser and to the best knowledge of the Appraiser the statements concerning the Appraisal and the value of the property contained under the captions "THE DISTRICT — Description of Development' are true, correct and complete in all material respects and do not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading; and (vi) the District and the Underwriter are entitled to rely on the Certificate; (20) A copy of the Appraisal; (21) A certificate from Harris & Associates ( "Special Tax Consultant') to the effect that (i) the Special Tax if applied in accordance with the terms as set forth in the Rate and Method of Apportionment for Community Facilities District No. 2005 -1 of the City of Lake Elsinore (Serenity) (the "Special Tax Formula "), after deducting Administrative Expenses, will annually yield sufficient revenue to make timely payments of debt service on the Bonds, provided that information and other data supplied by the District, by the Developer, by the Appraiser, by the Underwriter or by any of their agents, which has been relied upon by the Special Tax Consultant is true and correct, (ii) the Special Tax, if collected in the maximum amounts permitted pursuant to the Special Tax Formula on the Closing Date, would generate at least 110% of the maximum debt service payable with respect to the Bonds payable from such Special Tax during each fiscal year, based on a debt service schedule supplied by Southwest Securities, Inc. and the net taxable footage or acreage projection and other data provided by the Developer to the Special Tax Consultant and confirmed in the certificates of the Developer previously delivered to the Special Tax Consultant and relied upon by the Special Tax Consultant, (iii) the information supplied by such firm for use in the sections of the Off cial Statement captioned "APPENDIX D — RATE AND METHOD OF APPORTIONMENT" is true and correct as of the date of the Official Statement and as of the Closing. Date, and (iv) the description of the Special Tax Formula contained in the section of the Official Statement captioned "FINANCIAL INFORMATION — Rate and Method of Apportionment" is correctly presented in all material respects; (22) A certificate from Empire Economics, Inc. (the "Market Consultant') to the following effect (1) the individual signing the certificate is an authorized representative of the Market Consultant, and as such, is familiar with the facts certified and is authorized and qualified to certify the same; (ii) in the opinion of the Market Consultant the assumptions made in the Market Absorption Study Summary and Conclusion with respect to the City of Lake Elsinore Community Facilities District No 2005 -1 (Serenity), dated (the "Market Absorption Study ") are reasonable; (iii) that the Market Consultant is not aware of any event or act which has occurred since the date of the Market Absorption Study, which, in its 45701782.1 10 AGENDA ITEM N0. PAGE _0F ,-.. opinion, would materially and adversely affect the conclusions of the Market Absorption Study; (iv) the Market Consultant consents to the reproduction of the Market Absorption Study as Appendix B to the Official Statement and to the references to the Market Consultant and the Market Absorption Study made in the Official Statement; and (v) the Market Consultant certifies that as of the date of the certificate the Market Absorption Study contained in the Official Statement and the statements concerning the Market Absorption Study contained in the Official Statement are accurate in all material respects and do not omit to state a material fact necessary in order to make the statement contained therein, in the light of the circumstances under which they are made, not misleading and no events or occurrences have been ascertained by the Market Consultant as have come to its attention that would substantially adversely change the opinions set forth in the Market Absorption Study; and (vi) the District and the Underwriter are entitled to rely on the Certificate; (23) A copy of the Market Absorption Study; (24) Such additional legal opinions, certificates, instruments and other documents as the Underwriter may reasonably request to evidence the truth and accuracy, as of the date hereof and as of the date of the Closing, of the District's representations and warranties contained herein and of the statements and information contained in the Official Statement and the due performance or satisfaction by the District on or prior to the date of the Closing of all the agreements then to be performed and conditions then to be satisfied by it. All the opinions, letters, certificates, instruments and other documents mentioned above or elsewhere in this Purchase Contract shall be deemed to be in compliance with the provisions hereof if, but only if, they are in form and substance satisfactory to Bond Counsel and the Underwriter. The opinions and other documents presented as exhibits to this Purchase Contract or as Appendices to the Official Statement shall be deemed satisfactory provided they are substantially in the forms attached as exhibits to this Purchase Contract or as Appendices to the Official Statement. If the District shall be unable to satisfy the conditions to the obligations of the Underwriter to purchase, to accept delivery of and to pay for the Bonds contained in this Purchase Contract, or if the obligations of the Underwriter to purchase, to accept delivery of and to pay for the Bonds shall be terminated for any reason permitted by this Purchase Contract, this Purchase Contract shall terminate and neither the Underwriter nor the District shall be under any further obligation hereunder. 8. Termination. The Underwriter shall have the right to terminate the Underwriter's obligations under this Purchase Contract to purchase, to accept delivery of and to pay for the Bonds by notifying the District in writing or by telegram, of their election to do so, if, after the execution hereof and prior to the Closing: (a) the United States has become engaged in hostilities which have resulted in a declaration of war or a national emergency; (b) there shall have occurred the declaration of a general banking moratorium by any authority of the United States or the States of New York or California; (c) an event shall have occurred or been discovered as described in paragraph (m) of Section 5 hereof which in the opinion of the r., Underwriter requires the preparation and publication of disclosure material or a supplement or amendment to the Official Statement; (d) any legislation, ordinance, rule or regulation shall be 45701782.1 11 AGENDA ITEM N0. PACE 0 F introduced in, or be enacted by any governmental body, department or agency in the State of California, or a decision by any court of competent jurisdiction within the State of California shall be rendered which, in the Underwriter's reasonable opinion, materially adversely affects the market price of the Bonds; (e) legislation shall be introduced, by amendment or otherwise, or be enacted by the House of Representatives or the Senate of the Congress of the United States, or a decision by a court of the United States shall be rendered, or a stop order, ruling, regulation or official statement by or on behalf of the Securities and Exchange Commission or other governmental agency having jurisdiction of the subject matter shall be made or proposed, to the effect that the issuance, offering or sale of obligations of the general character of the Bonds, or the Bonds, as contemplated hereby or by the Official Statement, is or would be in violation of any provision of the Securities Act of 1933, as amended and as then in effect, or the Securities Exchange Act of 1934, as amended and as then in effect, or the Trust Fiscal Agent Agreement Act of 1939, as amended and as then in effect, or with the purpose or effect of otherwise prohibiting the issuance, offering or sale of obligations of the general character of the Bonds or the Bonds, as contemplated hereby or by the Official Statement; (f) additional material restrictions not in force as of the date hereof shall have been imposed upon trading in securities generally by any governmental authority or by any national securities exchange; (g) the New York Stock Exchange, or other national securities exchange or association or any governmental authority, shall impose as to the Bonds, or obligations of the general character of the Bonds, any material restrictions not now in force, or increase materially those now in force, with respect to the extension of credit by or the charge to the net capital requirements of broker- dealers; (h) trading in securities on the New York Stock Exchange or the American Stock Exchange shall have been suspended or limited or minimum prices have been established on either such exchange; or (i) any action shall have been taken by any government in respect of its monetary affairs which, in the reasonable opinion of the Underwriter, has a material adverse effect on the United States securities market. If this Purchase Contract shall be terminated pursuant to Section 7 or this Section 8, or if the purchase provided for herein is not consummated because any condition to the Underwriter's obligation hereunder is not satisfied or because of any refusal, inability or failure on the part of the District to comply with any of the terms or to fulfill any of the conditions of this Purchase Contract, or if for any reason the District shall be unable to perform all of its obligations under this Purchase Contract, the District shall not be liable to the Underwriter for damages on account of loss of anticipated profits arising out of the transactions covered by this Purchase Contract. 9. Payment of Costs and Expenses. The District shall pay (a) all costs and expenses incident to the sale and delivery of the Bonds to the Underwriter, including, but not limited to: (i) the fees and expenses of the District and its Counsel, Disclosure Counsel, Financing Consultant and other consultants; (ii) the fees and expenses of Bond Counsel; (iii) all costs and expenses incurred in connection with the preparation and printing of the Bonds; (iv) all expenses in connection with the preparation, printing, distribution and delivery of the Preliminary Official Statement, the Official Statement and any amendment or supplement thereto; (v) California Municipal Statistics fees, CUSIP Bureau charges, fees of Public Securities Association and California Public Securities Association, MSRB fees, California Debt and Investment Advisory Commission fees and (vi) the fees and expenses of the Fiscal Agent and its counsel shall be payable by the District from the proceeds of the Bonds. 45701782.1 12 1 `q AGENDA ITEM N0. PAGE _9_OF �^ (b) The Underwriter shall pay all advertising expenses in connection with the public offering of the Bonds and all other expenses incurred by it in connection with its public offering and distribution of the Bonds. r 10. Representations, Warranties and Agreements to Survive Delivery. The representations, warranties, indemnities, agreements and other statements of the District and the Underwriter or their officers or partners set forth in, or made pursuant to, this Purchase Contract will remain operative and in full force and effect regardless of any investigation made by or on behalf of the District or the Underwriter or any controlling person and will survive delivery of and payment for the Bonds. 11. Notices. Any notice or other communication to be given under this Purchase Contract may be given by delivering the same in writing: To the District: City of Lake Elsinore Community Facilities District No. 2005 -1 (Serenity) 130 South Main Street Lake Elsinore, California 92530 Attention: City Manager To the Underwriter: Southwest Securities, Inc. 620 Newport Center Drive, Suite 300 Newport Beach, California 92660 Attention: Tony Wetherbee 12. Parties in Interest. This Purchase Contract is made solely for the benefit of the District and the Underwriter (including the successors or assigns of the Underwriter) and no other person shall acquire or have any right hereunder or by virtue hereof All of the District's representations, warranties and agreements contained in this Purchase Contract shall remain operative and in full force and effect, regardless of. (i) any investigations made by or on behalf of the Underwriter; (ii) delivery of and payment for the Bonds pursuant to this Purchase Contract; and (iii) any termination of this Purchase Contract. 13. Determination of End of the Underwriting Period. For purposes of this Purchase Contract, the End of the Underwriting Period for the Bonds shall mean the earlier of (a) the day of the Closing unless the District has been notified in writing by the Underwriter, on or prior to the day of the Closing, that the "end of the underwriting period" for the Bonds for all purposes of the Rule will not occur on the day of the Closing, or (b) the date on which notice is given to the District by the Underwriter in accordance with the following sentence. In the event that the Underwriter has given notice to the District pursuant to clause (a) above that the "end of the underwriting period" for the Bonds will not occur on the day of the Closing, the Underwriter agrees to notify the District in writing as soon as practicable following the "end of the underwriting period" for the Bonds for all purposes of the Rule. 45701782.1 13 AGENDA ITEM NO. i t04 PAGE OF 14. Effectiveness. This Purchase Contract shall become effective upon the execution of the acceptance by the designee of the District and shall be valid and enforceable at the time of such acceptance. 15. Headings. The headings of the sections of this Purchase Contract are inserted for convenience only and shall not be deemed to be a part hereof. 16. Governing Law. This Purchase Contract shall be construed in accordance with the laws of the State of California. 17. Counterparts. This Purchase Contract may be executed in any number of counterparts. If the foregoing is in accordance with your understanding of the Purchase Contract please sign and return to us the enclosed duplicate copies hereof, whereupon it will become a binding agreement between the District and the Underwriter in accordance with its terms. Very truly yours, SOUTHWEST SECURITIES, INC. I� Title Accepted: This day of , 2006 CITY OF LAKE ELSINORE COMMUNITY FACILITIES DISTRICT NO. 2005 -1 (SERENITY) City Manager of the City of Lake Elsinore as the legislative body of the District 45701782.1 14 AGENDA ITEM NO. VC PAGE C1 (a OF Exhibit A City of Lake Elsinore Community Facilities District No. 2005 -1 (Serenity) Special Tax Bonds, 2006 Series A Maturity Date Principal (September 1) Amount Coupon Yield Price 45701782.1 A -1 AGENDA ITEM NO. PAGE L1 -I _OF Exhibit B Supplemental Opinion of Fulbright & Jaworski L.L.P. Addressed to the Underwriter City of Lake Elsinore Community Facilities District No. 2005 -1 (Serenity) Special Tax Bonds, 2006 Series A 2006 Southwest Securities, Inc. 620 Newport Center Drive, Suite 300 Newport Beach, California 92660 Ladies and Gentlemen: We have acted as Bond Counsel to the City of Lake Elsinore Community Facilities District No. 2005 -1 (Serenity), a community facilities district established under the Constitution and the laws of the State of California (the "District'), in connection with the issuance of $ aggregate principal amount of its Special Tax Bonds, 2006 Series A (the "Bonds "). The Bonds are being issued by the District under the Mello -Roos Community Facilities Act of 1982, as amended, constituting Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California and pursuant to a Fiscal Agent Agreement, dated as of February 1, 2006 (the "Fiscal Agent Agreement'), by and between the District and Union Bank of California, N.A., as fiscal agent, for the purpose of financing the acquisition of certain public facilities or capital fees to meet the needs of new development within the District, funding a reserve account for the Bonds, funding the cost of capitalized interest through September 1, 2006, and paying the costs of incidental expenses incurred in connection with financing such public facilities and forming and administering the District. Capitalized terms used herein and not otherwise defined shall have the meanings assigned to them in the Fiscal Agent Agreement. As Bond Counsel, we have examined copies certified to us as being true and complete copies of the proceedings of the District in connection with the issuance of the Bonds. We have also examined such certificates of representatives of the District and others as we have considered necessary for the purposes of this opinion. This opinion is limited to matters governed by the laws of the State of California and Federal securities laws of the United States, and we assume no responsibility with respect to the applicability or effect of laws of any other jurisdiction. 45701782.1 B -1 AGENDA ITEM N0. LR PAGE 9 g 0 A*_*� Based upon the foregoing, it is our opinion that: 1. The Fiscal Agent Agreement is exempt from qualification as an indenture pursuant to the Trust Indenture Act of 1939, as amended. 2. The Bonds are exempt from registration pursuant to the Securities Act of 1933, as amended. 3. As of the date of the Official Statement, dated , 2006, relating to the Bonds, the information contained in the Official Statement under the captions "INTRODUCTORY STATEMENT," "THE BONDS," "SOURCES OF PAYMENT FOR THE BONDS," "SUMMARY OF THE FISCAL AGENT AGREEMENT," "LEGAL MATTERS - Tax Exemption" and "APPENDIX A - DEFINITIONS OF CERTAIN TERMS USED IN THE FISCAL AGENT AGREEMENT," insofar as such statements expressly summarize certain provisions of the Bonds and the Fiscal Agent Agreement is accurate in all material respects. We are furnishing you this opinion letter at the request of the District solely for your benefit as the Underwriter of the Bonds, and it is not to be used, circulated, quoted or otherwise referred to for any other purpose, nor is it to be referred to in whole or in part in the Official Statement relating to the Bonds or any other document, except that it may be included in, and reference may be made to it in any list of, the closing documents pertaining to the delivery of the Bonds. Respectfully submitted, 45701782.1 B-2 AGENDA ITEM NO. PAGE�_OF Exhibit C Opinion of Von Blarcom, Liebold, McClendon & Mann, P.C., Special Counsel to the District N" Of Addressed to the Underwriter City of Lake Elsinore Community Facilities District No. 2005 -1 (Serenity) Special Tax Bonds, 2006 Series A , 2006 Southwest Securities, Inc. 620 Newport Center Drive, Suite 300 Newport Beach, California 92660 Ladies and Gentlemen: We are special counsel to the City of Lake Elsinore Community Facilities District No. 2005 -1 (Serenity) (the "District ") in connection with the issuance of the above - referenced Bonds and in such capacity, we have examined the original, certified copies, or copies otherwise identified to our satisfaction as being true copies of such resolutions, documents, certificates, and records as we have deemed relevant and necessary (except as we have specifically limited the scope of our investigation herein) as the basis for the opinions set forth herein (collectively the "Documents ") relying on such examination and pertinent law and subject to the limitations and qualifications hereinafter set forth, we are of the opinion that: 1. The District is a community facilities district duly organized and validly existing under the laws of the State of California with full legal right, power and authority to perform all of its obligations under the Purchase Contract dated , 2006 (the "Purchase Contract ") between the District and Southwest Securities, Inc. (the "Underwriter ") and the Basic Documents (as defined in the Purchase Contract). The City of Lake Elsinore, acting as the legislative body of the District, has duly authorized, and the District has executed and delivered, the Basic Documents and, assuming due authorization, execution and delivery by the other parties thereto, as necessary, the Basic Documents constitute legal, valid and binding agreements of the District enforceable against the District in accordance with their terms, except as the enforceability thereof may be limited by bankruptcy, moratorium, insolvency, equitable remedies and other laws affecting creditors' rights or remedies. 2. To the best of our knowledge, there is no action, suit or proceeding before or by any court, public board or body pending or threatened wherein an unfavorable decision, ruling or finding would (a) affect the creation, organization, existence or powers of the District or the titles of its officers to their respective offices, (b) in any way question or affect the validity or ,"m, 45701782.I C -1 I V AGENDA ITEM NO. PAGE _ O OF 10�1 enforceability of the Basic Documents, or (c) find illegal, invalid or unenforceable the Purchase Contract, or the transactions contemplated thereby, or any other agreement or instrument related to the issuance of the Bonds to which the District is a party. 3. The execution and delivery of the Basic Documents and the other instruments contemplated by any of such documents to which the District is a party, and compliance with the provisions of each thereof, will not conflict with or constitute a breach of or default under any applicable law or administrative rule or regulation of the State of California, the United States or any department, division, agency or instrumentality of either thereof, or any applicable court or administrative decree or order or any loan agreement, note, resolution, indenture, contract, agreement or other instrument to which the District is a party or is otherwise subject or bound in a manner which would materially adversely affect the District's performance under the Basic Documents. 4. All approvals, consents, authorizations, elections and orders of or filings or registrations with any governmental authority, board, agency or commission having jurisdiction which would constitute a condition precedent to, or the absence of which would materially adversely affect, the performance by the District of its obligations under the Basic Documents have been obtained and are in full force and effect. This letter is furnished by us as special counsel to the District. Other than the District, no attorney- client relationship has existed or exists between us and you in connection with the Bonds or by virtue of this letter. Our engagement with respect to the Bonds has terminated as of the date hereof, and we disclaim any obligation to update this letter. This letter is delivered to you, is solely for your benefit and is not to be used, circulated, quoted or otherwise referred to or relied upon for any other purpose or by any other person. This letter is not intended to, and may not, be relied upon by owners of the Bonds. Respectfully submitted, 45701782.1 C -2 AGENDA ITEM N0. PACE OF Exhibit D Opinion of Fulbright & Jaworski L.L.P., Disclosure Counsel Addressed to the Issuer and the Underwriter City of Lake Elsinore Community Facilities District No. 2005 -1 (Serenity) Special Tax Bonds, 2006 Series A 2006 City of Lake Elsinore Community Facilities District No. 2005 -1 (Serenity) 130 South Main Street Lake Elsinore, California 92530 Southwest Securities, Inc. 620 Newport Center Drive, Suite 300 Newport Beach, California 92660 ..i* Ladies and Gentlemen: We have acted as Disclosure Counsel to the City of Lake Elsinore Community Facilities District No. 2005 -1 (Serenity) (the "District" or "Issuer ") with respect to the issuance of the above captioned Bonds (the "Bonds "). The Bonds are being issued pursuant to the provisions of the Constitution and the laws of the State of California, including the provisions of the Mello - Roos Community Facilities Act of 1982, as amended, constituting Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California, as in existence on the Closing Date or as thereafter amended from time to time. The Bonds shall be issued and secured pursuant to a Fiscal Agent Agreement, dated as of February 1, 2006 (the "Fiscal Agent Agreement'), by and between the District and Union Bank of California, N.A., as. fiscal agent (the "Fiscal Agent'), authorizing the issuance of the Bonds. The Bonds are more fully described in the final Official Statement of the Issuer dated , 2006 (the "Official Statement'). Capitalized terms not otherwise defined herein shall have the meaning ascribed thereto in the Official Statement. In rendering this opinion, we have reviewed such records, documents, certificates and opinions, and made such other investigations of law and fact as we have deemed necessary or appropriate. This opinion is limited to matters governed by the Federal securities law of the United States, and we assume no responsibility with respect to the applicability or effect of the laws of any other jurisdiction. 45701782.1 D -1 AGENDA ITEM NO.,� PAGE OF �.. In our capacity as Disclosure Counsel, we have rendered certain legal advice and assistance to you in connection with the preparation of the Official Statement. Rendering such legal advice and assistance involved, among other things, discussions and inquiries concerning various legal matters, review of certain records, documents and proceedings, and participation in conferences with, among others, your representatives and representatives of Bond Counsel, the Financing Consultant, the City, the District, and other consultants, at which conferences the contents of the Official Statement and related matters were discussed. On the basis of the information made available to us in the course of the foregoing (but without having undertaken to determine or verify independently, or assuming any responsibility for, the accuracy, completeness or fairness of any of the statements contained in the Official Statement), no facts have come to the attention of the personnel in our firm directly involved in rendering legal advice and assistance in connection with the preparation of the Official Statement which cause us to believe that the Official Statement as of its date (excluding therefrom financial, engineering and statistical data; forecasts, projections, estimates, assumptions and expressions of opinions; the treatment of the Bonds or the interest, discount or premium related thereto for tax purposes under the law of any jurisdiction; and the statements contained in the Official Statement under the captions "LEGAL MATTERS -- Tax Exemption," and in the Appendices thereto, as to all of which we express no view) contained any untrue statement of a material fact or omitted to state a material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading. During the period from the date of the Official Statement to the date of this opinion, except for our review of the certificates and opinions regarding the Official Statement delivered on the date hereof, we have not undertaken any procedures or taken any actions which were intended or likely to elicit information concerning the accuracy, completeness or fairness of any of the statements contained in the Official Statement. We are furnishing this opinion to you, as Disclosure Counsel to the Issuer, solely for your benefit. This opinion is rendered in connection with the transaction described herein, and may not be relied upon by you for any other purpose. This opinion shall not extend to, and may not be used, circulated, quoted, referred to, or relied upon by, any other person, firm, corporation or other entity without our prior written consent. Our engagement with respect to this matter terminates upon the delivery of this opinion to you at the time of the closing relating to the Bonds, and we have no obligation to update this opinion. Very truly yours, 45701782.1 D -2 AGENDA ITEM NO. 1 PACE _I Q-�_0F Exhibit E Certificate of the Developer Reference is made to the City of Lake Elsinore Community Facilities District No. 2005 -1 (Serenity) Special Tax Bonds, 2006 Series A (the "Bonds " ), and to the Purchase Contract dated 2006 (the "Purchase Contract ") by and between the City of Lake Elsinore Community Facilities District No. 2005 -1 (Serenity) (the "District ") and Southwest Securities, Inc. (the "Underwriter "), relating to the Bonds. This certificate is delivered pursuant to Section (7)(e)(16) of the Purchase Contract. Capitalized terms used herein and not otherwise defined have the meanings ascribed to them in the Purchase Contract. As used herein, the term "Actual Knowledge of the Undersigned" shall mean the knowledge that the undersigned currently has or has obtained from interviews with such officers and responsible employees of the Developer as the undersigned has reasonably determined are likely, in the ordinary course of their respective duties, to have knowledge of the matters set forth herein. Other than as set forth in the immediately preceding sentence, with your permission, the undersigned has not conducted any additional inspection or inquiry. As used herein, the term "Affiliate" shall mean any entity in which the Developer has a controlling ownership interest. The undersigned certifies that he is familiar with the facts herein certified and is authorized and qualified to certify the same as an authorized officer or representative of KB Home Coastal, Inc., a California corporation (the "Developer "), and the undersigned, on behalf of the Developer, further certifies as follows: 1. The Developer has been duly organized and validly exists under the laws of the State of California, is duly qualified to conduct business in California, and has all requisite right, power and authority (i) to execute and deliver this Certificate, and to execute and deliver at Closing (as defined in the Purchase Contract) its proposed Developer Continuing Disclosure Agreement (the "Continuing Disclosure Agreement ") dated as of February 1, 2006 and (ii) to undertake all of the transactions on its part contemplated by the proposed Continuing Disclosure Agreement and described in the Preliminary Official Statement. 2. As set forth in, and as of the date of, the Preliminary Official Statement, the Developer owns certain property (the "Property ") within the City of Lake Elsinore Community Facilities District No. 2005 -1 (Serenity) (the "District "). The Developer makes the representations herein with respect to all of such parcels. Except as otherwise described in the Preliminary Official Statement, the Developer is, and the Developer's current expectation is that the Developer shall remain, the developer of the Property. Except as otherwise described in the Preliminary Official Statement, the Developer has not entered into an agreement for development or management of the Property by any entity other than the Developer. 45701782.1 E-1 AGENDA ITEM NO. LE PAGE OF 3. The Developer has, or will have prior to Closing, duly authorized the execution and delivery at Closing of its proposed Continuing Disclosure Agreement, and is duly authorized to perform the obligations on its part to be performed thereunder. To the Actual Knowledge of the Undersigned, the Developer has not previously failed to comply in any material respect with any undertakings by it under Rule 15c2 -12 of the Securities and Exchange Commission under the Securities Exchange Act of 1934 to provide periodic continuing disclosure reports or notices of material events in California within the past five years. 4. Except as disclosed in the Preliminary Official Statement, to the Actual Knowledge of the Undersigned, the Developer and its Affiliates are not in breach of or in default under any applicable law or administrative regulation of the State of California or the United States, or any agency or instrumentality of either, which breach or default would in any way materially and adversely affect the Developer's ability to perform its obligations under the proposed Continuing Disclosure Agreement, or the Developer's ability to pay its special tax obligations when due on its Property (the "Special Taxes "), and to the Actual Knowledge of the Undersigned, no event has occurred and is continuing which with the passage of time or giving of notice, or both, would constitute such a breach or default; and to the Actual Knowledge of the Undersigned, the execution and delivery at Closing by the Developer of its Continuing Disclosure Agreement and compliance with the provisions thereof will not conflict with or constitute a breach of or default under any law or administrative regulation applicable to the Developer. 5. Except as disclosed in the Preliminary Official Statement, to the Actual Knowledge of the Undersigned, the Developer is not in breach of or in default under any applicable judgment or decree or any loan agreement, option agreement, development agreement, indenture, fiscal agent agreement, bond, note, resolution, agreement or other instrument to which the Developer is, or will upon issuance of the Bonds be, a party or otherwise subject, which breach or default would in any way materially and adversely affect the Developer's ability to perform its obligations under the proposed Continuing Disclosure Agreement, or its ability to pay the Special Taxes, and no event has occurred and is continuing that with the passage of time or giving of notice, or both, would constitute such a breach or default; and the execution and delivery at Closing by the Developer of its proposed Continuing Disclosure Agreement and compliance with the provisions thereof will not conflict with or, constitute a breach of or default under any judgment, decree, loan agreement, indenture, fiscal agent agreement, bond, note, resolution, agreement or other instrument to which the Developer is a party or otherwise subject which breach or default would in any way materially and adversely affect the Developer's ability to perform its obligations under the proposed Continuing Disclosure Agreement, its ability to develop the Property or its ability to pay the Special Taxes. 6. Except as described in the Preliminary Official Statement, the Developer has no loans outstanding and unpaid secured by the Property and no lines of credit which are secured by the Property. 7. Except as set forth in the Preliminary Official Statement, to the Actual Knowledge of the Undersigned, there is no litigation or administrative proceedings of any 45701782.1 E -2 AGENDA ITEM NO- 4q PACE _.OF -�� nature pending against the Developer (with property service of process having been accomplished) or, to the Actual Knowledge of the Undersigned, threatened against the Developer, which if successful, would have a material adverse affect on the ability of the `410, Developer to complete the development and sale of the Property, or to pay the Special Taxes or ordinary ad valorem property tax obligations when due on the Property. 8. As of the date hereof, except as clarified below, the Preliminary Official Statement, solely with respect to information contained therein with respect to the Developer, including its Affiliates, the ownership and proposed development of the Property, the Developer's development plan, the Developer's financing plan, and the Developer's lenders and contractual arrangements, if any, as set forth under the captions "THE DISTRICT" (excluding the information regarding the Appraisal, market value ratios and annual special tax ratios and information provided by a source other than the Developer) and "SOURCES OF PAYMENT FOR THE BONDS" is true and correct in all material respects and does not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading. 9. The Developer has full power and authority to own and develop the Property, and to carry on its business as presently conducted and as described in the Preliminary Official Statement. 10. The Developer covenants that, while the Bonds or any refunding obligations related thereto are outstanding, the Developer and its Affiliates will not bring any action, suit, proceeding, inquiry or investigation at law or in equity, before any court, regulatory agency, public board or body, that in any way seeks to challenge or overturn the formation of the District, to challenge the adoption of the Ordinance levying Special Taxes within the District, to invalidate the District or any refunding obligations, or to invalidate the special tax liens imposed under Section 3115.5 of the Streets and Highways Code based on recordation of the notices of special tax lien relating thereto. The foregoing covenant shall not prevent the Developer in any way from bringing any other action, suit or proceeding including, without limitation, an action or suit contending that the Special Tax has not been levied in accordance with the methodologies contained in the District's Special Tax Formula pursuant to which the Special Taxes are levied, an action or suit with respect to the application or use of the Special Taxes levied and collected, or an action or suit to enforce the obligations of the City and the District under the Fiscal Agent Agreement or any other agreements between the Developer, the City and/or the District, or to which the Developer is a beneficiary. 11. Except as disclosed in the Preliminary Official Statement, to the Actual Knowledge of the Undersigned, no other public debt secured by a tax or assessment on the Property is in the process of being authorized and no assessment districts or community facilities districts are in the process of being formed that include any portion of the Property. 12. Except as described in the Preliminary Official Statement, the Developer has not assumed any obligations under any judgment, decree, contract or otherwise, that 45701782.1 E -3 AGENDA ITEM N0. - PAGE OF,� ,^ would materially interfere with the Developer's execution and performance of its obligations under the proposed Continuing Disclosure Agreement or which would in any way materially and adversely affect its ability to develop the Property or to pay Special Taxes. 13. To the Actual Knowledge of the Undersigned and except as disclosed in the Preliminary Official Statement, the Developer and its Affiliates have never defaulted to any material extent in the payment of special taxes or assessments in connection with the District or any other community facilities district or assessment district in California within the past five years. 14. The Developer has received a copy of the Rate and Method of Apportionment containing the prepayment formula. The Developer acknowledges that any prepayment of the levy of the Special Taxes with respect to any parcel of Property shall only be made in accordance with said terms. 15. The Developer agrees to comply with the provision of the Mello -Roos Community Facilities Act relating to the Notice of Special Tax described in California Government Code Section 53341.5 in connection with the sale of the Property. 16. To the Actual Knowledge of the Undersigned, the Developer and its Affiliates are solvent and no proceedings are pending (with proper service of process having been accomplished) or, to the Actual Knowledge of the Undersigned, threatened AO-1- in which the Developer or the Affiliates may be adjudicated as bankrupt or become the debtor in a bankruptcy proceeding, or discharged from any and all of its debts or obligations or granted an extension of time to pay its debts or obligations or a reorganization or readjustment of its debts. 17. To the Actual Knowledge of the Undersigned, there are no claims, disputes, suits, actions or contingent liabilities among, by or between the Developer and any of its financial partners, Affiliates, or among, by or between the Developer and any contractors involved in the development of the Property which may materially adversely affect the development of the Property or the payment of the Special Taxes. 18. Based upon its current development plans, including, without limitation, its current budget and subject to economic conditions and risks generally inherent in the development of real property, the Developer anticipates that it will have sufficient funds to develop the Property as described in the Preliminary Official Statement and to pay Special Taxes assessed against the Property and does not anticipate that the District will be required to resort to the Reserve Account for payment of principal of or interest on the Bonds due to the Developer's nonpayment of Special Taxes. However, none of the Developer or its Affiliates is obligated to make any additional capital contribution or loan to the Developer at any time and neither the Developer nor its Affiliates are obligated to pay, or to contribute additional capital for the payment of, Special Taxes. 19. To the Actual Knowledge of the Undersigned, all information submitted by, or on behalf of, the Developer to the City, the District, the Special Tax Consultant or 45701782.1 E -4 AGENDA ITEM N0. PACE1,�..OF the Underwriter in connection with the issuance of the Bonds, and to Harris Realty Appraisal (the "Appraiser") in connection with the preparation of the appraisal relating to the District was, at the time of submission or as updated through the date of this `"a#" certificate, correct in all material respects. 20. The Developer consents to the issuance of the Bonds. The Developer acknowledges and agrees that the proceeds of such Bonds will be used as described in the Preliminary Official Statement, and that the costs of acquisition and construction of such improvements are estimates. Any increase in costs in excess of the estimated costs relating to improvements will reduce the improvements which may be financed by the District, and neither the City nor the District has any obligation to provide moneys to pay for any such costs. 21. Solely as to information indicated in Section 8 hereof concerning the Developer, its Affiliates and the proposed development of the Property by the Developer, and subject to the limitations and exclusions set forth in Section 9, the Developer agrees to indemnify and hold harmless, to the extent permitted by law, the District and the City, and their officials, and employees and each person, if any, who controls any of the foregoing within the meaning of Section 15 of the Securities Act of 1933, as amended, or of Section 20 of the Securities Exchange Act of 1934, as amended, against any and all losses, claims, damages or liabilities, joint or several, to which such indemnified party may become subject under any statute or at law or in equity or otherwise, and shall reimburse any such indemnified party for any legal or other expense incurred by it in connection with investigating any such claims against it and defending any such actions, insofar as such losses, claims, damages, liabilities or actions arise out of or are based upon any untrue statement or alleged untrue statement of a material fact or the omission or alleged omission to state, in the Preliminary Official Statement, a material fact necessary to make the statement therein, in light of the circumstances under which it was made not misleading. This indemnity provision shall not be construed as a limitation on any other liability which the Developer may otherwise have to any indemnified party, provided that in no event shall the Developer be obligated for double indemnification or for the gross negligence or willful misconduct of an indemnified party. 22. The Developer agrees to execute its Continuing Disclosure Agreement substantially in the form attached to the Preliminary Official Statement, with such additional changes as may be agreed upon by the Developer. 23. If between the date hereof and the date of the Closing any event relating to or affecting the Developer or the proposed development of the Property by the Developer shall occur of which the undersigned has actual knowledge and which the undersigned believes might or would cause the Official Statement, as then supplemented or amended, to contain an untrue statement of a material fact or to omit to state a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading, the Developer shall notify the District and the Underwriter and if in the opinion of counsel to the District or the Underwriter such event requires the preparation and publication of a supplement or amendment to the Official Statement, the Developer shall cooperate with the District in 45701782.1 E -5 AGENDA ITEM No. 4q__ PACE I OZ. OF -2,1.5 the preparation of an amendment or supplement to the Official Statement in form and substance satisfactory to counsel to the District and to the Underwriter. 24. For a period of 90 days after the issuance of the Bonds, if any event relating to or affecting the Developer or the proposed development of the Property by the Developer shall occur of which the undersigned has actual knowledge as a result of which it is necessary, in the opinion of the Underwriter or counsel to the District, to amend or supplement the Official Statement in order to make the Official Statement not misleading in the light of the circumstances existing at the time it is delivered to a purchaser, the Developer shall cooperate with the District and the Underwriter in the preparation of an amendment or supplement to the Official Statement in form and substance satisfactory to the Underwriter and counsel to the District which will amend or supplement the Official Statement so that it will not contain an untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances existing at the time the Official Statement is delivered to a purchaser, not misleading. 25. The Developer agrees to deliver a bring -down certificate, substantially in the form attached hereto as Exhibit A, dated the date of issuance of the Bonds at the time of issuance of the Bonds to affirm and restate the Developer's certifications made herein. 26. On behalf of the Developer, I have reviewed the content of this certificate and the Developer has consulted with counsel regarding the meaning of its contents. DATED: , 2006 KB HOME COASTAL, INC., a California corporation By: _ Title: 45701782.1 E -6 AGENDA ITEM NO. �Aq_ PAGE�09OF al Exhibit F Bring -Down Certificate of the Developer Reference is made to the City of Lake Elsinore Community Facilities District No. 2005 -1 (Serenity) Special Tax Bonds, 2006 Series A (the "Bonds "), to the Purchase Contract dated , 2006 (the "Purchase Contract ") by and between the City of Lake Elsinore Community Facilities District No. 2005 -1 (Serenity) (the "District ") and Southwest Securities, Inc. (the "Underwriter "). This certificate is delivered pursuant to the Purchase Contract. Capitalized terms used herein and not otherwise defined have the meanings ascribed to them in the Purchase Contract. A copy of a Certificate dated , 2006 (the "Certificate ") delivered by KB Home Coastal, Inc., a California corporation (the "Developer ") is attached hereto as Exhibit A. The undersigned certifies that he is familiar with the facts herein certified and is authorized and qualified to certify the same as an authorized officer or representative of the Developer, and the undersigned, on behalf of the Developer, further certifies as follows: 1. The Developer has received a copy of the final Official Statement and each statement made in the Certificate is affirmed and restated as if made on the date hereof, provided that each statement made in the Certificate referring to the Preliminary Official Statement is affirmed as it relates to the final printed Official Statement and each statement made in the Certificate referring to the proposed Continuing Disclosure Agreement is affirmed as if it relates to the Continuing Disclosure Agreement as executed and delivered. 2. To the Actual Knowledge of the Undersigned, no event has occurred since the date of the Official Statement which has adversely affected or will materially and adversely affect the business, properties, operations, prospects or financial condition of the Developer or its Affiliates which would materially and adversely affect the Developer's ability to develop its Property or its ability to pay its Special Taxes. 3. The Developer has duly authorized the execution and delivery of its Continuing Disclosure Agreement, is duly authorized to perform the obligations on its part to be performed thereunder, and its Continuing Disclosure Agreement constitutes the legal, valid and binding obligations of the Developer, enforceable against it in accordance with its terms. DATED: , 2006 KB HOME COASTAL, INC., a California corporation By: _ Title: 45701782.1 F -1 AGENDA ITEM NO. PAGE,�,�OF -� FUNDING, CONSTRUCTION AND ACQUISITION AGREEMENT THIS FUNDING, CONSTRUCTION AND ACQUISITION AGREEMENT, dated as of 1, 2005 for identification purposes only (this "Agreement'), is by and between the City of Lake Elsinore, California (the "City "), acting on behalf of City of Lake Elsinore Community Facilities District No. 2005 -1 (Serenity) (the "District ") and KB Home Coastal, Inc., a California corporation, (the "Owner "). RECITALS WHEREAS, the City has undertaken proceedings to form the City of Lake Elsinore Community Facilities District No. 2005 -1 (Serenity) (the "District "), authorize the levy of special taxes within the District, and authorize the issuance of the Bonds (as defined below) pursuant to The Mello -Roos Community Facilities Act of 1982 (the "Act ") to fund the acquisition and construction of the Public Facilities (as defined below) and related costs and the payment of City fees and fees of the Elsinore Valley Municipal Water District. The City will use the proceeds of the Bonds to, among other things, finance the payment of Fees and the Purchase Price of the Public Facilities. WHEREAS, the Public Facilities are within the vicinity of or of benefit to the City, and the City and the Owner will benefit from a coordinated plan of financing, design, engineering and construction of the Public Facilities and the development of the land. WHEREAS, the Owner and the City wish to finance the acquisition and construction of the ublic Facilities and the payment therefor by entering into this Agreement for the acquisition of the Public Facilities and payment for Discrete Components (as defined below) thereof as shown in Exhibit A hereto (as it may be amended and supplemented) with funds in the Acquisition and Construction Fund (as defined below). WHEREAS, the City has authorized the issuance of the Bonds under the Act and the Fiscal Agent Agreement (as defined below), the proceeds of which shall be used, in part, to finance the acquisition of the Public Facilities. WHEREAS, the City and the other Receiving Agencies (as defined below) have determined that they will obtain no advantage from undertaking the construction of the Public Facilities, and that the provisions of this Agreement require that the Public Facilities constructed by the Owner and completed after formation of the District be constructed as if they had been constructed under the direction and supervision of the Receiving Agency. Notwithstanding the foregoing, upon mutual agreement of the City, the Owner and the Receiving Agency, the City or its designee or Receiving Agency or its designee may construct any of the Public Facilities financed in whole or in part with funds in the Acquisition and Construction Fund as set forth in Section 4.6 below. WHEREAS, in consideration of the mutual promises and covenants set forth herein, and for other valuable consideration, the receipt and sufficiency of which are hereby acknowledged, 45567927.8 1 AGENDA ITEM N0. PAGE I OF. the City and the Owner agree that the foregoing recitals, as applicable to each, are true and correct and further make the agreements set forth herein. NOW, THEREFORE, for and in consideration of the mutual promises and covenants herein contained, the parties hereto agree as follows: ARTICLE I DEFINITIONS Section 1.1 Definitions. The following terms shall have the meanings ascribed to them in this Section 1.1 for purposes of this Agreement. Unless otherwise indicated, all other capitalized terms used herein shall have the meanings ascribed to them in the Fiscal Agent Agreement. "Acceptance Date" means the date the City approves a Payment Request. "Acceptable Title" means title to land or interest therein, in form acceptable to the Receiving Agency, free and clear of all liens, taxes, assessments, leases, easements and encumbrances, whether or not recorded, other than exceptions that do not materially interfere with the actual or intended use of the land or interest therein or as shall have otherwise been approved by the Receiving Agency. "Act" means The Mello -Roos Community Facilities Act of 1982, being Chapter 2.5 of "Of Part 1 of Division 2 of Title 5 (commencing with Section 53311) of the California Government Code. "Acquisition and Construction Fund" means the Acquisition and Construction Fund, and any accounts established therein, established by a Fiscal Agent Agreement relating to the issuance of a series of the Bonds of the District, from which the Purchase Price of the Public Facilities or Discrete Component thereof and Fees shall be paid and from which Actual Costs of the Public Facilities or Discrete Component may be financed in accordance with the Construction Election. "Actual Cost" means the cost of a Public Facility or a Discrete Component, which cost may include: (i) the actual hard costs for the construction of such Public Facility or Discrete Component, including labor, materials and equipment costs; (ii) the costs incurred in preparing the Plans for such Public Facility or Discrete Component and the related costs of environmental evaluations of the Public Facility or Discrete Component; (iii) the fees paid to governmental agencies for obtaining permits, licenses or other governmental approvals for such Public Facility or Discrete Component; (iv) professional costs associated with such Public Facility or Discrete Component, such as engineering, legal, accounting, inspection, construction staking, materials testing and similar professional services; (v) costs directly related to the construction and/or acquisition of a Public Facility or Discrete Component, such as costs of payment, performance and/or maintenance bonds, and insurance costs (including costs of any title insurance required hereunder); (vi) costs of construction management and supervision equal to five percent (5 %) of 45567927.8 2 AGENDA ITEM N0. PAGE I OF the amount set forth in (i) above for a Public Facility or Discrete Component; and (vii) the value of any real property or interests therein ( "Real Estate ") that (1) are required for the development of any Public Facility such as temporary construction easements, haul roads, etc., and (2) are required to be conveyed with the Public Facility, in an amount equal to the actual cost of the Real Estate purchased from such independent third party. The City shall not purchase such Real Estate from the Owner. Actual Cost shall not include any internal or overhead costs of Owner other than the amount for construction management and supervision set forth in clause (vi) above. "Affiliate" means any entity owned, controlled or under common ownership or control by or with, as applicable, the Owner and includes all general partners of any entity which is a partnership. Control shall mean ownership of more than fifty percent (50 %) of the voting power of or ownership interest in the respective entity. "Agreement" means this Funding, Construction and Acquisition Agreement, together with any Supplement hereto. "Bonds" means the bonds, notes or other indebtedness of the District issued to generate proceeds for the Acquisition and Construction Fund. "City" means the City of Lake Elsinore, California. "City Facilities" means one or more of the public facilities or Discrete Components thereof described in Exhibit A -1 hereto, as it may be amended or supplemented, to be owned, operated and maintained by the City which are eligible to be financed out of the Acquisition and Construction Fund. "Construction Election" shall have the meaning set forth in Section 3.6 below. "County" means the County of Riverside, California. "Director" means the Director of Community Development of the City, or his or her designee acting as such under this Agreement. "Discrete Component" means (i) a component of a Public Facility that the City and the Receiving Agency have agreed can be separately identified, inspected and completed, and can be the subject of a Payment Request hereunder, and (ii) categories of costs relating to each Public Facility as generally described in Exhibit A -1 hereto. "District" means City of Lake Elsinore Community Facilities District No. 2005 -1 (Serenity), a community facilities district organized and existing under the laws of the State of California. "District Representative" means the City Manager or his designee. "EVMWD" means Elsinore Valley Municipal Water District. 45567927.8 3 AGENDA ITEM N0. PAGE I IS OF DU -9_ "Fees" means development impact fees, environmental mitigation fees or other capital improvement fees or charges imposed or collected by the City or EVMWD on development N"10* within the District. "Fiscal Agent" means the fiscal agent identified in the Fiscal Agent Agreement, or any successor thereto acting as fiscal agent under the Fiscal Agent Agreement. "Fiscal Agent Agreement" means a fiscal agent agreement between the City and the Fiscal Agent, providing for, among other matters, the issuance of the Bonds and the establishment of the Acquisition and Construction Fund, as it may be amended or supplemented from time to time. "Improvement Agreement" shall have the meaning set forth in Section 2.3 below. "Notice" shall have the meaning set forth in Section 9.3 hereof. "Owner" means KB Home Coastal, Inc., a California corporation. "Party" means either the City or the Owner; "Parties" mean the Owner and the City. "Payment Request" means a document, substantially in the form of Exhibit B -1 hereto, to be used in requesting a payment of a Purchase Price, and a document, substantially in the form of Exhibit B -2 hereto, to be used in requesting payment of Fees. "Plans" means the plans, specifications, schedules and related construction contracts for the Public Facilities and/or any Discrete Components thereof approved pursuant to applicable standards of the applicable Receiving Agency, inclusive of all change orders, if any. As of the date of this Agreement, the City standards for construction are incorporated in the [City of Lake Elsinore Standard Plan and are supplemented from time to time by standards set forth in the Green Book, CALTRANS Standard Plan and Specification, Standard Specifications for Public Works Construction (SSPWC), of the Southern California Chapter of the American Public Works Association and the Southern California Districts of the Associated General Contractors of California.] "Project" means the development within the District commonly known as Serenity "Public Facility" or "Public Facilities" means one or more of the public facilities described in Exhibit A -1 hereto, as it may be amended or supplemented, which are to be owned, operated and maintained by the Receiving Agency and are eligible to be financed out of the Acquisition and Construction Fund. The City Facilities constitute a portion of the Public Facilities. "Purchase Price" means the amount paid by the District for a Public Facility and/or any Discrete Components thereof in an amount equal to the lesser of the Actual Cost or the value of such Public Facility or Discrete Component as determined in Section 4.4. 45567927.8 4 AGENDA ITEM N0. q9 PACE �LOF a "Receiving Agency" means, as applicable, the City or the other governmental entity that will own, operate and maintain a Public Facility or Discrete Component when completed and acquired. "Supplement" means a written document amending, supplementing or otherwise modifying this Agreement and any exhibit hereto, including any amendments to the list of Public Facilities and Discrete Components in Exhibit A, and/or the addition to Exhibit A of additional Public Facilities (and Discrete Components) to be financed with the proceeds of the Bonds deposited in the Acquisition and Construction Fund. ARTICLE II FUNDING Section 2.1 Proceedings. The City shall conduct all necessary proceedings under the Act for the issuance, sale and delivery of each series of Bonds. Section 2.2 Bond Proceeds and Special Taxes. The City shall not be obligated to pay Fees and the Purchase Price of any Public Facility or any Discrete Components thereof except from amounts on deposit in the Acquisition and Construction Fund. The City makes no warranty, express or implied, that the proceeds of the Bonds deposited and held in the Acquisition and Construction Fund, and any investment earnings thereon, will be sufficient to pay the Purchase Price of all of the Public Facilities or Discrete Components thereof and Fees. Section 2.3 Proceeds. The proceeds of the Bonds shall be deposited, held, invested, reinvested and disbursed as provided in the Fiscal Agent Agreement. A portion of the proceeds of the Bonds will be set aside in the Acquisition and Construction Fund. Moneys in the Acquisition and Construction Fund shall be deposited, held, invested, reinvested and disbursed therefrom in accordance with the provisions of the Fiscal Agent Agreement and the applicable provisions hereof for payment of all or a portion of the Purchase Price of the Public Facilities (including payment of the Purchase Price of Discrete Components thereof) and Fees, all as herein provided. The Acquisition and Construction Fund may include two accounts — a "City Facilities Account" (for payment of City Fees and City Facilities) and a "Non -City Facilities Account (for payment of EVMWD Fees and Public Facilities other than City Facilities)." Upon the issuance of each series of Bonds, proceeds available to be deposited in the Acquisition and Construction Fund shall be initially allocated to the City Facilities Account and Non -City Facilities Account, as set forth in a written request from Owner. Transfers shall be made between the two accounts upon the written request of the Owner and the written approval of the City. Unless otherwise requested in writing by Owner prior to issuance of each series of Bonds, earnings on amounts in each Account of the Acquisition and Construction Fund shall be retained in the Account and available to pay the Purchase Price of Public Facilities and Fees until either (i) all Public Facilities and Fees have been financed, as evidenced by a certificate provided by Owner, or (ii) Owner provides a certificate to the District indicating that the funds on deposit in the Acquisition and Construction Fund are sufficient to finance the remaining Public Facilities and Fees for which Owner expects to submit a Payment Request, at which time any earnings shall be 45567927.8 5 AGENDA ITEM N0. PACE. 15 OF transferred to pay debt service on the Bonds. Earnings on amounts in the reserve fund(s) created under the Fiscal Agent Agreements, shall be deposited as set forth in the Fiscal Agent Agreements: For Bonds issued on or prior to May 30 of a given calendar year, the District agrees to include capitalized interest to cover, at a minimum, debt service due in September of the same year. For Bonds issued after May 30 of a given calendar year, the District agrees to include capitalized interest to cover, at a minimum, debt service for all payments due up to and including September of the following year. The Owner acknowledges that any lack of availability of amounts in the Acquisition and Construction Fund to pay the Purchase Price of the Public Facilities or any Discrete Components thereof and Fees shall in no way diminish any obligation of the Owner with respect to the construction of or contributions for public facilities and mitigation measures required in connection with the Project by any development or other agreement to which the Owner is a party, or any governmental approval to which the Owner is subject (collectively, the "Improvement Agreements "). Section 2.4 Continuing Disclosure Agreement. The Owner agrees to provide to the City, and to require each transferee or assignee to provide to the City all.information regarding the development within the District, including the financing plan for such development, which is necessary to ensure that the City complies with its continuing disclosure obligations under the Fiscal Agent Agreement and all other applicable federal and state securities laws. �../ ARTICLE III CONSTRUCTION OF PUBLIC FACILITIES Section 3.1 Plans. To the extent and at the time required by the Improvement Agreements, the Owner shall cause Plans to be prepared for the Public Facilities. The Owner shall obtain the written approval of the Plans in accordance with applicable ordinances and regulations of the applicable Receiving Agencies. Section 3.2 Construction. This Agreement shall not expand, limit or otherwise affect any obligation of the Owner under any Improvement Agreements. All Public Facilities shall be constructed in accordance with the Improvement Agreements and the approved Plans. Section 3.3 Relationship to Public Works. This Agreement is for the acquisition of and payment for the Public Facilities or Discrete Components thereof by the Receiving Agency from moneys in the Acquisition and Construction Fund and is not intended to be a public works contract. The City and the Owner agree that the Owner shall award all contracts for the construction of the Public Facilities and the Discrete Components thereof to be constructed by the Owner, and that this Agreement is necessary to assure the timely and satisfactory completion of such Public Facilities and the Discrete Components thereof. -../ 45567927.8 6 AGENDA ITEM NO., X I PAGE LLfg,_0F_ a5_ r�- From time to time at the request of the District Representative or the Owner, the Owner and the District Representative shall meet and confer regarding matters arising hereunder with respect to the Public Facilities, Discrete Components and the progress in constructing and acquiring the same, and as to any other matter related to the Public Facilities or this Agreement. Section 3.4 Contractor. In performing this Agreement, the Owner is an independent contractor and not an agent or employee of the City. The City shall not be responsible for making any payments to any contractor, subcontractor, agent, consultant, employee or supplier of the Owner. Section 3.5 Contracts and Change Orders. The Owner shall be responsible for entering into all contracts and any supplemental agreements (commonly referred to as "change orders ") required for the construction of the Public Facilities or Discrete Components to be constructed by the Owner, and all such contracts and supplemental agreements shall be submitted to the Director. The Owner shall be required to show evidence that Owner solicited, or caused to be solicited, at least three (3) bids for the construction of each Public Facility for which the Owner submits a payment request and that the contract for the construction of each such Public Facility was awarded to the lowest responsible bidder for such Public Facility. Bidding contracts and change orders shall comply with the requirements set forth in Exhibit "D" of this Agreement. Section 3.6 Construction Election. The Owner and City, or the Owner and a Receiving Agency, may mutually elect (the "Construction Election ") to cause any or all of the Public Facilities or a Discrete Component thereof to be constructed by the City or Receiving Agency, if applicable, and financed out of the Acquisition and Construction Fund in accordance with the terms and conditions described in this Section 3.6 and the Improvement Agreements and subject to the availability of sufficient funds, including the proceeds of the Bonds. If the Owner and City, or the Owner and a Receiving Agency, make the Construction Election with respect to a Public Facility or any Discrete Component thereof, the Owner shall transfer Acceptable Title to the land or right -of -ways then owned by the Owner on and over such real property on which the Public Facility or any Discrete Component thereof is to be constructed. Upon completion of a Public Facility or Discrete Component thereof for which a Construction Election has been made, payment shall be made pursuant to Section 4.4 below for any Actual Costs thereof incurred by the Owner prior to the Construction Election. Section 3.7 Notice of Completion and Lien Releases. Upon completion of the construction of a Public Facility, the Owner shall notify the Director in writing of such completion and shall prepare and execute a Notice of Completion for such Public Facility in the form prescribed by Section 3093 of the California Civil Code and shall record such notice in the Official Records of the County of Riverside. The Owner shall cause its contractors to provide unconditional lien releases for such Public Facility or all Discrete Components in accordance with Section 3262 of the Civil Code. 45567927.8 7 AGENDA ITEM N0. PAGE I t O7 0 ARTICLE IV ACQUISITION AND PAYMENT Section 4.1 Inspection. No payment hereunder shall be made by the City to the Owner for a Public Facility or Discrete Component thereof until the Public Facility or Discrete Component thereof, if applicable, has been inspected by the City or the other applicable Receiving Agency that will be acquiring the same. Unless otherwise provided in a Supplement, the City shall make or cause to be made regular on -going site inspections of the Public Facilities to be acquired hereunder. For Public Facilities or Discrete Components to be acquired by other Receiving Agencies, the Owner shall be responsible for obtaining such inspections and providing written evidence thereof to the Director. Section 4.2 Agreement to Sell and Purchase Public Facilities. The Owner hereby agrees to sell to the City, and the City hereby agrees to purchase from the Owner, the Public Facilities, including the Discrete Components thereof, constructed by the Owner for their respective Purchase Prices, subject to the terms and conditions hereof. The City shall not be obligated to purchase any Public Facility until the Public Facility is completed and the acceptance by the Receiving Agency for such Public Facility has occurred; provided that the City has agreed hereunder to make payments to the Owner for Discrete Components of Public Facilities prior to the completion of such Public Facilities. The Owner acknowledges that the Discrete Components have been identified for payment purposes only, and that the City shall not accept a City Facility of which a Discrete Component is a part until the entire City Facility has been completed. The City acknowledges that the Discrete Components do not have to be accepted by the applicable Receiving Agency as a condition precedent to the payment of the Purchase Price therefor, but any such payment shall not be made until the Discrete Component has been completed in accordance with the Plans therefor and such completion is acknowledged in writing by the Receiving Agency. The Parties hereto acknowledge that certain Public Facilities, as generally described in Exhibit A -2 attached hereto, may have been completed prior to the formation of the District. The Parties agree that said Public Facilities shall, upon the concurrence of the Director that said Public Facilities (or Discrete Components thereof) were completed prior to the formation of the District, be eligible to be acquired with funds available in the Acquisition and Construction Fund, pursuant to the provisions of this Agreement excepting therefrom those provisions relating to public bidding, competitive bidding, and payment of prevailing wages. Section 4.3 Requests. In order to receive the Purchase Price for a completed Public Facility or Discrete Component, inspection thereof under Section 4.1, if applicable, shall have been made and the Owner shall deliver to the District Representative and the Director: (i) a Payment Request in the form of Exhibit B -1 hereto for such Public Facility or Discrete Component, and (ii) if payment is requested for a completed Public Facility, (a) if the property on which the Public Facility is located is not owned by the Receiving Agency at the time of the request, a copy of the recorded documents conveying to the Receiving Agency Acceptable Title to the real property on, in or over which such Public Facility is located, as described in Section 6.1 hereof, (b) a copy of the recorded notice of completion of such Public Facility (if 45567927.8 g AGENDA ITEM N0. PAGE 119 OFOLaS ,O-11 applicable), and (c) an assignment of the warranties and guaranties for such Public Facility, as described in Section 5.5 hereof. Section 4.4 Determination of Value for a Public Facility. The value of a Public Facility shall be equal to the Actual Cost of construction of such Public Facility, less such portion of such cost of construction which the Director has, in his or her reasonable professional opinion, determined would not have been incurred had such Public Facility been constructed pursuant to a public works contract awarded by the City. As a non - inclusive example, if the Owner pays overtime to complete the construction of street improvements to provide access to a parcel by a date certain as required by Owner's lease obligations to a tenant occupying such parcel, the cost of such overtime will be deducted from the overall cost of construction of such Public Facility to determine the value of such Public Facility. Section 4.5 Payment Requests. Upon receipt of a Payment Request (and all accompanying documentation), the Director shall conduct a review in order to confirm that such request is complete, that such Discrete Component or Public Facility identified therein was constructed substantially in accordance with the Plans therefor, and to verify and approve the Purchase Price of such Discrete Component or Public Facility specified in such Payment Request. The Director shall conduct each such review in an expeditious manner and the Owner agrees to reasonably cooperate with the Director in conducting each such review and to provide the Director with such additional information and documentation as is reasonably necessary for the Director to conclude each such review. For any Public Facilities to be acquired by another Receiving Agency, the Owner shall provide evidence acceptable to the Director that such Public Facilities are acceptable to such Receiving Agency. Within ten (10) business days of receipt of any Payment Request, the Director shall notify the Owner whether such Payment Request is complete, and, if not, what additional documentation must be provided. If such Payment Request is complete, the Director will provide a written approval or denial of the request within twenty -one (21) business days of its submittal. If the Director disapproves any Payment Request, it shall provide written notice of disapproval to the Owner within such twenty -one (21) business day period stating in reasonable detail the reasons for such disapproval and the changes to the Payment Request necessary to obtain the Director's approval. The Director's review of any Payment Request shall be made on a Public Facility and/or Discrete Component basis such that the Director shall approve for payment any Public Facilities and/or Discrete Components covered by a Payment Request that comply with the requirements of this Agreement even if the Director disapproves other Public Facilities and Discrete Components included as part of the same Payment Request. If the Director disputes the Purchase Price of any Public Facility or Discrete Component covered by the Payment Request, the Director shall approve for payment an amount equal to the Actual Cost thereof the Director determines is appropriate (which shall not be less than the amounts of contracts and change orders previously approved by the Director) and shall deliver notice of disapproval of the remaining amount. If the Director disapproves any revised Payment Request, the Director will provide a written notice of approval or denial to the Owner within ten (10) business days after receipt of the revised Payment Request, which notice shall describe in reasonable detail the reason for the denial, if applicable. The Director shall only be entitled to withhold approval for payment of a Discrete Component (other than the final Discrete Component of any Public Facility) to be owned by the City that is the subject of a Payment Request if (i) the Owner has not provided conditional lien 45567927.8 9 AGENDA ITEM N0. T I PAGE 119 0 releases for labor and materials provided in connection with such Discrete Components (provided that this basis for disapproval shall not apply if the Owner has provided payment bonds to the City in connection with the Improvement Agreements or has provided bonds protecting the City from mechanics' liens by parties that have not provided lien releases in a form satisfactory to the Director), (ii) the Discrete Component has not been constructed substantially in accordance with the Plans, (iii) the Director disputes the Actual Cost of the Discrete Component stated in the Payment Request or (iv) the Owner is delinquent in paying its special taxes. The Director shall only be entitled to withhold approval for payment of any Public Facility to be owned by the City (or the final Discrete Component of any such Public Facility) if (i) a notice of completion executed in the form described in California Civil Code Section 3093, has not been recorded for the Public Facility and final conditional lien releases for labor and materials provided in connection with such Public Facilities have not been submitted to the Director (provided that this requirement shall not apply if the Owner has provided to the City a payment bond in connection with the Improvement Agreements or provides a bond protecting the City from mechanics' liens made by parties that have not provided such lien releases in a form acceptable to the Director), (ii) the Public Facility has not been constructed substantially in accordance with the Plans, (iii) the Director disputes the Actual Cost of any Public Facility or Discrete Component stated in the Payment Request or (iv) the Owner is delinquent in paying its special taxes. The City shall only be entitled to withhold payment for any Public Facilities or Discrete Components thereof to be owned by a Receiving Agency other than the City if the Owner does not provide the Director with evidence that the Receiving Agency has accepted the Public Facility or Discrete Components thereof. Nothing in this Agreement shall be deemed to prohibit the Owner from contesting in good faith the validity or amount of any mechanics' or materialman's lien not limit the remedies available to the Owner with respect thereto so long as such delay in performance shall not subject the Public Facilities or any Discrete Component thereof to foreclosure, forfeiture or sale. In the event that any such lien is contested, the Owner shall only be required to post or cause the delivery of a bond in an amount equal to the amount in dispute with respect to any such contested lien, so long as such bond is drawn on an obligor and is otherwise in a form acceptable to the Director. Section 4.6 Payment. Upon approval of the Payment Request (or any portion thereof) by the Director, the Director shall sign the Payment Request and forward the same to the District Representative. Upon receipt of the approved Payment Request, the District Representative shall, within five (5) business days of receipt of the approved Payment Request, cause the same to be paid, to the extent of funds then on deposit in the Acquisition and Construction Fund. Any approved Payment Request not paid due to an insufficiency of funds in the Acquisition and Construction Fund shall be paid promptly following the deposit into the Acquisition and Construction Fund of additional proceeds of the Bonds, earnings on the Acquisition and Construction Fund or other funds transferred pursuant to the Fiscal Agent Agreement. 45567927.8 l AGENDA ITEM N0. 4q PAGE ► ao OF_� ,•� The Purchase Price paid hereunder for any Public Facility or Discrete Component shall constitute payment in full for such Public Facility or Discrete Component, including, without limitation, payment for all labor, materials, equipment, tools and services used or incorporated in the work, supervision, administration, overhead, expenses and any and all other things required, furnished or incurred for completion of such Public Facility or Discrete Component, as specified in the Plans. Section 4.7 Restrictions on Payments. Notwithstanding any other provisions of this Agreement, the following restrictions shall apply to any payments made to the Owner under Section 4.2 and Section 4.5 hereof: A. Amounts of Parents. Payments for each Discrete Component or Public Facility will be made only in the amount of the Purchase Price for the respective Discrete Component or Public Facility. The City agrees that the Actual Cost of a Discrete Component or Public Facility may fluctuate from the budgeted amounts. The City agrees that the Owner has the latitude to increase or decrease the reimbursement of a Discrete Component or Public Facility, as the Purchase Price is determined. In no case will the total Purchase Price paid exceed the total amount of funds available in the Acquisition and Construction Fund. Nothing herein shall require the City in any event (i) to pay more than the Purchase Price of a Public Facility or Discrete Component; or (ii) to make any payment beyond the available funds in the Acquisition and Construction Fund for such Public Facilities or Discrete Components. The Parties hereto acknowledge and agree that all payments to the Owner for the Purchase Prices of Public Facilities or Discrete Components are intended to be reimbursed to the Owner for services provided or costs incurred by the Owner or moneys already expended or incurred by the Owner to third parties in respect of such Public Facilities and/or Discrete Components. B. Frequency. No more than one Payment Request shall be submitted in any calendar month although a Payment Request may relate to more than one Public Facility or Discrete Component. Section 4.8 Defective or Nonconforming Work. If any of the work done or materials furnished for a Public Facility or Discrete Component are found by the Director to be defective or not in substantial accordance with the applicable Plans: (i) if such finding is made prior to payment for the Purchase Price of such Public Facility or Discrete Component hereunder, the Director may withhold payment therefor until such defect or nonconformance is corrected, or (ii) if such finding is made after payment of the Purchase Price of such Public Facility or Discrete Component, the Receiving Agency and the Owner shall act in accordance with the applicable Improvement Agreement, if any. Section 4.9 Modification of Discrete Components. Upon written request of the Owner, the Director shall consider modification of the description of any Discrete Component. Any such modification shall be subject to the written approval of the Director, which approval the Director may withhold in his sole discretion, and shall not diminish the overall Public Facilities to be provided pursuant to the Improvement Agreements. 45567927.8 11 AGENDA ITEM NO. LJCDI PAGE i a OF �a �j Section 4.10 Funding of Fees. The City may requisition from the City Facilities Account, in the manner specified in the Fiscal Agent Agreement and this Agreement, an amount which is sufficient to pay all or a portion of the Fees payable by Owner or its successors and �.r✓ assigns upon receipt of a Payment Request in the form attached hereto as Exhibit B -2. The City shall provide a credit against the applicable Fees to the Owner or its successors and assigns equal to the amount of the moneys disbursed pursuant to the Payment Request. In the event the Owner is required to pay Fees to the City prior to the issuance and sale of the Bonds, Owner or its successors and assigns shall make a deposit equal to the amount due and such deposit shall he reimbursed to the Owner when funds subsequently deposited in the City Facilities Account are disbursed to the City in an equal amount for the payment of such Fees. In the event Bonds are not issued within twelve (12) months of the date of any such deposit, such deposit may at the written direction of the Director be applied to pay Fees and shall no longer be reflected as a Deposit on the accounts of the City. Some of the Public Facilities anticipated to be constructed are included in City development impact fee or other financing programs. The Owner shall be entitled to full credit against all applicable Fees imposed or collected by the City based upon the Owner's construction of such Public Facilities whether or not the Purchase Price of such Public Facilities is funded out of the Acquisition and Construction Fund. ARTICLE V OWNERSHIP AND TRANSFER OF PUBLIC FACILITIES Section 5.1 Conveyance of Land and Easements for Receiving Agency. Acceptable Title to all property on, in or over which each Public Facility to be acquired by the Receiving Agency will be located, shall be conveyed to the Receiving Agency by way of grant deed, quitclaim, or dedication or irrevocable offer of dedication of such property, or easement thereon, in accordance with the applicable Improvement Agreement, if any. The Owner agrees to provide the Receiving Agency such documents as are required to obtain Acceptable Title with respect to these Public Facilities funded pursuant to this Agreement. Completion of the transfer of title to land shall be accomplished prior to the payment of the Purchase Price for a Public Facility (or the last Discrete Component thereof) and shall be evidenced by recordation of the acceptance thereof by the Receiving Agency. Section 5.2 Evidence and Insurance. Within fifteen (15) calendar days following the request of the City, the Owner shall furnish to the City a preliminary title report for such land not previously dedicated or otherwise conveyed to the City, for review and approval prior to the transfer of Acceptable Title to a Public Facility to the City. Within ten (10) calendar days thereafter, the Director shall approve the preliminary title report unless it reveals a matter which, in the judgment of the Director, could materially affect the City's use of any part of the property or easement covered by the preliminary title report for the purpose for which such property or easement is being conveyed. In the event the Director does not approve the preliminary title report, the City shall not be obligated to accept title to such Public Facility or pay the Purchase Price for such Public Facility (or the last Discrete Component thereof) until such objections to title have been cured to the satisfaction of the Director. The failure of the Director to provide written approval to the Owner shall be deemed to be a disapproval. 45567927.8 12 ACENDA ITEM NO. PAGE, I as OF 'L'),_ i-. Section 5.3. Facilities Constructed on Private Lands. If any Public Facilities to be acquired are located on privately -owned land, the owner thereof shall retain title to the land and the completed Public Facilities until acquisition of the Public Facilities under Article V hereof. Pending the completion of such transfer and where the Owner has received any payment for any such Public Facility or a Discrete Component thereof, the Owner shall be responsible for maintaining the land and any Public Facilities or Discrete Components in good and safe condition. Notwithstanding the foregoing, subject to the terms of the applicable Improvement Agreement, upon written request of the Receiving Agency before payment for the last Discrete Component of such a Public Facility, the Owner shall convey or cause to be conveyed Acceptable Title thereto in the manner described in Section 5.1 hereof. Section 5.4 Facilities Constructed on City Land. If the Public Facilities to be acquired are on land owned by the City, the City hereby grants to the Owner a license to enter upon such land for purposes related to the construction (and maintenance pending acquisition) of the Public Facilities. The provisions for inspection and acceptance of such Public Facilities otherwise provided herein shall apply. Section 5.5 Maintenance and Warranties. The Owner shall maintain each Discrete Component of any Public Facility constructed by the Owner in good and safe condition until the Acceptance Date of the Public Facility of which such Discrete Component is a part. Prior to the Acceptance Date, the Owner shall be responsible for performing any required maintenance on any completed Discrete Component or Public Facility constructed by the Owner. On or before the Acceptance Date of the Public Facility, the Owner shall assign to the Receiving Agency, to the extent assignable, all of Owner's rights in any warranties, guarantees, maintenance obligations or other evidence of contingent obligations of third persons with respect to such Public Facility. The Owner shall maintain or cause to be maintained each Public Facility constructed by the Owner for such period and for such purpose, all in accordance with the applicable Improvement Agreement. After the Acceptance Date, the Owner shall not be responsible for maintaining such Public Facility. Any warranties, guarantees or other evidences of contingent obligations of third parties with respect to the Public Facilities to be acquired by the City shall be delivered to the Director as part of the transfer of title. ARTICLE VI INSURANCE Section 6.1 Requirements. The Owner shall, at all times prior to the final Acceptance Date of all Public Facilities, maintain, deliver to the City evidence of and keep in full force and effect, or cause to be maintained, delivered to the City evidence of and kept in full force and effect, the insurance policies required pursuant to the Improvement Agreements. All of the Owner's insurance policies shall contain an endorsement providing that written notice shall be given to the City at least 30 calendar days prior to termination, cancellation, or reduction of coverage in the policy and an endorsement extending coverage to the City and its agents as an additional insured, in the same manner as the named insured as respects liabilities Ao_� arising out of the performance of any work related to the Public Facilities. Such insurance shall 45567927.8 13 AGENDA ITEM N0. PAGE_ _OF be primary insurance as respects the interest of the City, and any other insurance maintained by the City shall be excess and not contributing insurance with the insurance required hereunder. The foregoing requirements as to the insurance coverage to be maintained by the Owner are not intended to and shall not in any manner limit or qualify the liabilities and obligations assumed by the Owner under this Agreement. Section 6.2 Evidence of Insurance. The Owner shall furnish to the City, from time to time upon request, a certificate of insurance regarding each insurance policy required to be maintained by the Owner hereunder. ARTICLE VII REPRESENTATIONS, WARRANTIES AND COVENANTS Section 7.1 Covenants and Warranties of the Owner. The Owner represents and warrants for the benefit of the City as follows: A. Organization. KB Home Coastal, Inc., a California corporation, is in compliance with the laws of the State of California, and has the power and authority to own its property and assets and to carry on its business as now being conducted and as now contemplated. B. Authority. The Owner has the power and authority to enter into this Agreement, and has taken all action necessary to cause this Agreement to be executed and N"O, delivered, and this Agreement has been duly and validly executed and delivered by the Owner. C. Binding Obligation. This Agreement is a legal, valid and binding obligation of the Owner, enforceable against the Owner in accordance with its terms. D. Financial Records. Until one year after the final acceptance of all the Public Facilities, the Owner covenants to maintain proper books of record and account for the construction of the Public Facilities and all costs related thereto. Such accounting books shall be maintained in accordance with generally accepted accounting principles, and shall be available for inspection by the City or its agent at any reasonable time during regular business hours on reasonable notice. E. Plans. The Owner represents that it has obtained or will obtain approval of the Plans for the Public Facilities constructed by the Owner from all appropriate departments of the City and from any other public entity or public utility from which such approval must be obtained. The Owner further agrees that the Public Facilities constructed by the Owner have been or will be constructed in compliance with such approved Plans and any supplemental agreements (change orders) thereto, as approved in the same manner. Section 7.2 Indemnification and Hold Harmless. The Owner shall assume the defense of, indemnify, and hold harmless the City, its officers, directors, employees and agents and each of them, 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 resulting from the 45567927.8 14 AGENDA ITEM NO. L PAGE �OF� A0__ Owner's non - payment under contracts between the Owner and its consultants, engineers, advisors, contractors, subcontractors and suppliers in the provision of the Public Facilities, or any claims of persons employed by the Owner or its agents to construct the Public Facilities. Notwithstanding the foregoing, no indemnification is given hereunder for any action, damage, claim, loss or expense directly attributable to the intentional acts or gross negligence of the City, or its officers, directors, employees or agents hereunder or otherwise with respect to the Public Facilities or payment therefor. No provision of this Agreement shall in any way limit the Owner's responsibility for payment of damages resulting from the operations of the Owner and its agents, employees or contractors. ARTICLE VIII DEFAULT AND REMEDIES Section 8.1 Default Remedies. Failure by either Party to perform any action or covenant required by this Agreement within the time periods provided herein following Notice and failure to cure as described hereafter, constitutes a "Default" under this Agreement. A Party claiming a Default shall give written Notice of Default to the other Party specifying such Default. Except as otherwise expressly provided in this Agreement, the ' claimant shall not institute any proceeding against any other Party, and the other Party shall not be in Default if such party within thirty (30) days from receipt of such Notice immediately, with due diligence, '^ commences to cure, correct or remedy such failure or delay and shall complete such cure, correction or remedy with diligence. Section 8.2 Institution of Legal Actions. The Parties shall be entitled to seek any remedy available at law and in equity for the other Party's Default. All legal actions must be instituted in the Superior Court of the County of Riverside, State of California, or in the United States District Court for District of California in which Riverside County is located. Section 8.3 Acceptance of Service of Process. In the event that any legal action is commenced by the Owner against the City, service of process on the City shall be made by personal service upon the City Clerk or in such other manner as may be provided by law. In the event that any legal action is commenced by the City against the Owner, service of process on the Owner shall be made in such manner as may be provided by law. Section 8.4 Rights and Remedies Are Cumulative. Except as otherwise expressly stated in this Agreement, the rights and remedies of the Parties are cumulative, and the exercise by either Party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same Default or any other Default by the other Party. Section 8.5 Inaction Not a Waiver of Default. Any failures or delays by either Party in asserting any of its rights and remedies as to any Default shall not operate as a waiver of any Default or of any such rights or remedies, or deprive either such Party of its right to institute and 45567927.8 15 AGENDA ITEM NO. .I PAGE I a s OF maintain any actions or proceedings which it may deem necessary to protect, assert or enforce any such rights or remedies. Section 8.6 Applicable Law. The laws of the State of California shall govern the interpretation and enforcement of this Agreement. Section 8.7 Attorneys' Fees. In any action between the Parties to interpret, enforce, reform, modify, rescind or otherwise in connection with any of the terms or provisions of this Agreement, the prevailing party in the action or other proceeding shall be entitled, in addition to damages, injunctive relief or any other relief to which it might be entitled, reasonable costs and expenses including, without limitation, litigation costs, expert witness fees and reasonable attorneys' fees. ARTICLE IX GENERAL Section 9.1 Mutual Consent. This Agreement may be terminated by the mutual written consent of the City and the Owner, and all or any portion of the moneys in the Acquisition and Construction Fund may be used to pay for same, and the Owner shall have no claim or right to any further payments for the Purchase Price of Public Facilities or Discrete Components hereunder, except as otherwise may be provided in such written consent. Section 9.2 Audit. The City shall have the right, during normal business hours and upon the giving of five (5) business days' prior written notice to the Owner, to review all books N"0*4 and records of the Owner pertaining to costs and expenses incurred by the Owner in relation to any of the Public Facilities, and any bids taken or received for the construction thereof or materials therefor. Section 9.3 Notices, Demands and Communications Between the Parties. Any notices, requests, demands, documents, approvals or disapprovals given or sent under this Agreement from one Party to another (collectively, "Notices ") may be personally delivered, transmitted by facsimile (FAX) transmission, or deposited with the United States Postal Service for mailing, postage prepaid, or sent by overnight delivery to the address of the other Party as stated in this Section, and shall be deemed to have been given or sent at the time of personal delivery or FAX transmission or, if mailed, on the third day following the date of deposit in the course of transmission with the United States Postal Service or if sent by overnight delivery, on the day following its deposit with the overnight courier. Notices shall be sent as follows: If to City: City of Lake Elsinore Attn: City Manager 130 S. Main Street Lake Elsinore, CA 92530 FAX No. (909) 674 -239 45567927.8 16 AGENDA ITEM N0, PAGE) OF AO-11 With copies to: Van Blarcom, Leibold, McClendon & Mann, P.C. Attn: Barbara Zeid Leibold, City Attorney 23422 Mill Creek Drive, Suite 105 Laguna Hills, CA 92653 FAX No. (949) 457 -6305 If to Owner: KB Home Coastal, Inc. - Riverside Division Attn: Scott Hansen 26201 Ynez Road, Suite 104 Temecula, California 92591 FAX No. (951) 506 -1722 Section 9.4 Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the successors and assigns of the Parties hereto. The Owner may assign its rights pursuant to this Agreement to a purchaser (an "Assignee ") of a portion or portions of the property which is /are located within the District (the "Property "). The Owner may assign to the Assignee the responsibility for the construction of all or a portion of the Public Facilities or Discrete Components thereof which remain to be constructed and the right to receive payment of the Purchase Price for Public Facilities and Discrete Components thereof previously completed by the Owner. The Owner and Assignee shall provide to City such reasonable proof as the City may require that such Assignee is the purchaser of such Property within the District. Such Assignee shall, as a condition to receiving payment of a Purchase Price, enter into an assignment and assumption agreement with the City and the Owner, in the form attached hereto as Exhibit C, whereby such Assignee agrees, except as may be otherwise specifically provided therein, to assume the obligations of the Owner pursuant to this Agreement with respect to such Public Facilities or Discrete Components thereof and to be bound thereby and whereby the Owner shall be released with respect to such obligations. In addition, the Owner may assign to an Assignee, without the City's consent or the Assignee's execution of an assignment and assumption agreement, the rights and obligations under this Agreement relating to the funding of Fees, provided that the Owner gives the City written notice of the identity of the Assignee, the specific Fees covered by the assignment and the Property to be owned by such Assignee. Section 9.5 Relationship Between the City and the Owner. It is hereby acknowledged by the Owner that the relationship between the City and the Owner is not that of a partnership or joint venture and that the City and the Owner shall not be deemed or construed for any purpose to be the agent of the other. Accordingly, except as expressly provided herein or in the Attachments hereto, the City shall have no rights, powers, duties or obligations with respect to the development, operation, maintenance or management of the Project. The Owner agrees to indemnify, hold harmless and defend the City from any claim made against the City arising from a claimed relationship of partnership or joint venture between the City and the Owner with respect to the development, operation, maintenance or management of the property within the District. 45567927.8 17 AGENDA ITEM No. 4q____i PAGE 190 oi; Section 9.6 No Third Party Rights. The Parties intend that no rights nor remedies be granted to any third party as a beneficiary of this Agreement or of any covenant, duty, obligation or undertaking established herein. Section 9.7 Counterparts. This Agreement may be signed in multiple counterparts which, when signed by all Parties, shall constitute a binding agreement. This Agreement is executed in five (5) originals, each of which is deemed to be an original. Section 9.8 Other Agreements. The obligations of the Owner hereunder shall be that of a Party hereto. Nothing herein shall be construed as affecting the City's or the Owner's rights or duties to perform their respective obligations under Improvement Agreements or other agreements, use regulations or subdivision requirements relating to the development of property within the District. This Agreement shall not confer any additional rights, or waive any rights given, by either Party hereto under any development or other agreement to which they are a party. Section 9.9 Titles and Captions. Titles and captions are for convenience of reference only and do not define, describe or limit the scope or the intent of this Agreement or of any of its terms. References to section numbers are to sections in this Agreement, unless expressly stated otherwise. Section 9.10 Interpretation. As used in this Agreement, masculine, feminine or neuter gender and the singular or plural number shall each be deemed to include the others where and when the context so dictates. The word "including" shall be construed as if followed by the words "without limitation." This Agreement shall be interpreted as though prepared jointly by N"10* both Parties. Section 9.11 No Waiver. A waiver by either Party of a breach of any of the covenants, conditions or agreements under this Agreement to be performed by the other Party shall not be construed as a waiver of any succeeding breach of the same or other covenants, agreements, restrictions or conditions of this Agreement. Section 9.12 Modifications. Any alteration, change or modification of or to this Agreement, in order to become effective, shall be made in writing and in each instance signed on behalf of each Party. Section 9.13 Severability. If any term, provision, condition or covenant of this Agreement or its application to any party or circumstances shall be held, to any extent, invalid or unenforceable, the remainder of this Agreement, or the application of the term, provision, condition or covenant to persons or circumstances other than those as to whom or which it is held invalid or unenforceable, shall not be affected, and shall be valid and enforceable to the fullest extent permitted by law. Section 9.14 Computation of Time. The time in which any act is to be done under this Agreement is computed by excluding the first day (such as the day escrow opens), and including the last day, unless the last day is a holiday or Saturday or Sunday, and then that day is also excluded. The term "holiday" shall mean all holidays as specified in Section 6700 and 6701 of •.d 45567927.8 18 AGENDA ITEM NO PAGEOF -. the California Government Code. If any act is to be done by a particular time during a day, that time shall be Pacific Time Zone time. Section 9.15 Legal Advice. Each Party represents and warrants to the other the following: it has carefully read this Agreement, and in signing this Agreement it does so with full knowledge of any right which it may have; it has received independent legal advice from its legal counsel as to the matters set forth in this Agreement, or has knowingly chosen not to consult legal counsel as to the matters set forth in this Agreement; and, it has freely signed this Agreement without any reliance upon any agreement, promise, statement or representation by or on behalf of the other Party, or its respective agents, employees, or attorneys, except as specifically set forth in this Agreement, and without duress or coercion, whether economic or otherwise. Section 9.16 Cooperation. Each Party agrees to cooperate with the other in this transaction and, in that regard, to sign any and all documents which may be reasonably necessary, helpful, or appropriate to carry out the purposes and intent of this Agreement including, but not limited to, releases or additional agreements. Section 9.17 Conflicts of Interest. No member, official or employee of the City shall have any personal interest, direct or indirect, in this Agreement, nor shall any such member, official or employee participate in any decision relating to the Agreement which affects his personal interests or the interests of any corporation, partnership or association in which he is directly or indirectly interested. Section 9.18 Non - Liability of Officials and Employees of City. No member, official or employee of the City shall be personally liable to the Owner, or any successor in interest, in the event of any Default or breach by the City or for any amount which may become due to the Owner or its successors, or on any obligations under the terms of this Agreement. The Owner hereby waives and releases any claim it may have against the members, officials or employees of the City with respect to any Default or breach by the City under this Agreement or for any amount under this Agreement which may become due to Owner or its successors, or on any obligations under the terms of this Agreement. Section 9.19 Notice of Special Tax. The Owner, or the successor or assigns of the Owner, shall prepare and provide written notice to all potential purchasers or lessees, if the special taxes are to be passed through to such lessees, of lots in the form prescribed by California Government Code Section 53341.5 advising the potential owner or lessee, as applicable, of the fact of the proposed or confirmed District, with said document being executed by the potential purchaser or lessee, as applicable. Such notice shall be provided to the potential purchaser or lessee, as applicable, before the potential purchaser becomes contractually committed to purchase the lot or the lessee enters into the lease of the lot so that the potential purchaser or lessee, as applicable, may knowingly consider the impact of the special tax in the decision to purchase or lease the lot. IN WITNESS WHEREOF, the Parties have executed this Agreement as of the respective dates set forth below. 45567927.8 19 AGENDA ITEM N0. PAGE I.—aOF,� "CITY" CITY OF LAKE ELSINORE, a municipal *.me corporation Dated: , 2005 By: ATTEST: FREDERICK ROY, CITY CLERK FREDERICK ROY APPROVED AS TO FORM: VAN BLARCOM, LEIBOLD, McCLENDON & MANN, P.C. City Attorney IC BARBARA ZEID LEIBOLD Mayor "OWNER" KB HOME COASTAL, INC., a California corporation Dated: , 2006 By: Its: 45567927.8 20 P AGENDA ITEM N0. PAGE �OF a2-5 EXHIBIT A ELIGIBLE PUBLIC FACILITIES AND FEES LIST The following public works cost categories are eligible for reimbursement/acquisition as Discrete Components of a Public Facility and are eligible for payment as Fees. Elsinore Valley Municipal Water District Fees Water Capacity Fees $ 1,410,675 Sewer Capacity Fees 1,237,929 Irrigation Meter Fee 103,052 Total EVMWD Fees $ 2,751,657 City of Lake Elsinore Fees Traffic Impact $ 278,901 Library Fee 34,950 Street Light Fees 54,837 Drainage Fee 308,696 Total City Fees $ 677,384 City of Lake Elsinore Facilities Park Improvements $1,013,865 Street improvements, curbs & gutters, sidewalks, landscaping, and traffic signals within City right-of-way $3,213,494 Total City Facilities $4,227,359 Total Fees and Facilities 1 $ 7,656,400 AGENDA ITEM NO. PACE_ ,0F+i EXHIBIT A -2 LIST OF PUBLIC FACILITIES COMPLETED PRIOR TO FORMATION OF DISTRICT N.1' A-2 AGENDA ITEM N0. ,Vdf PAGE L2Q-0F EXHIBIT B -1 PAYMENT REQUEST NO. The undersigned (the "Owner ") hereby requests payment in the total amount of $ for the Public Facilities or Discrete Components (each as defined in the Funding, Construction and Acquisition Agreement, dated as of , 2005 (the "Agreement "), by and between the City of Lake Elsinore (the "City ") and KB Home Coastal, Inc., a California corporation, and described in Exhibit A to that Agreement), all as more fully described in Attachment 1 hereto. In connection with this Payment Request, the undersigned hereby represents and warrants to the City and the District as follows (all capitalized terms used but not otherwise defined herein shall have the respective meanings ascribed to such terms in the Agreement): 1. He /She is a duly authorized officer of the Owner, qualified to execute this Payment Request for payment on behalf of the Owner and is knowledgeable as to the matters set forth herein. 2. To the extent that this Payment Request is with respect to a completed Public Facility or Discrete Component, the Owner has submitted or submits herewith to the City, if applicable, as -built drawings or similar plans and specifications for the items to be paid for as listed in Attachment 1 hereto with respect to any such Public Facility or Discrete Component, and such drawings or plans and specifications, as applicable, are true, correct and complete. 3. All costs of the Public Facilities or Discrete Components for which payment is requested hereby are Actual Costs. The items for which payment is requested have not been the subject of any prior payment request submitted to the City. 4. Supporting documentation (such as third party invoices, lien releases and cancelled checks) is attached with respect to each cost for which payment is requested. 5. The Public Facilities or Discrete Components for which payment is requested were constructed in accordance with the requirements of the Agreement. 6. The Owner is in compliance with the terms and provisions of the Agreement and no portion of the amount being requested to be paid was previously paid. 7. The Purchase Price for the Public Facilities or Discrete Components (a detailed calculation of which is shown in Attachment 1 hereto for each Public Facility or Discrete Component) has been calculated in conformance with the terms of Section 4.4 of the Agreement. B -1 -1 AGENDA fYEM PAGE OF, 2,a,5. I hereby declare under penalty of perjury that the above representations and warranties are true and correct. OWNER: C Authorized Representative of Owner Date: CITY: Payment Request Approved for Submission to the Fiscal Agent i Director of Community Development Date: B-1-2 AGENDA iTEM N0. PAeCE_�OF,-2XS- CJ 11^ ATTACHMENT 1 SUMMARY OF PUBLIC FACILITIES AND DISCRETE COMPONENTS TO BE ACQUIRED AS PART OF PAYMENT REQUEST NO. Ref. No. Public Actual Cost Disbursement Facility/Discrete Requested Component [List here all Public Facilities or Discrete Components for which payment is requested, and attach support documentation] B -1 -3 AGENDA ITEM NO.�L..� EXHIBIT B -2 PAYMENT REQUEST NO. The undersigned (the "Owner ") hereby requests payment in the total amount of $ for the Fees (as defined in the Funding, Construction and Acquisition Agreement, dated as of , 2005 (the "Agreement "), by and between the City of Lake Elsinore (the "City ") and KB Home Coastal, Inc., a California corporation, and described in Exhibit A to that Agreement), all as more fully described in Attachment 1 hereto. In connection with this Payment Request, the undersigned hereby represents and warrants to the City and the District as follows (all capitalized terms used but not otherwise defined herein shall have the respective meanings ascribed to such terms in the Agreement): 1. He /She is a duly authorized officer of the Owner, qualified to execute this Payment Request for payment on behalf of the Owner and is knowledgeable as to the matters set forth herein. 2. The items for which payment is requested have not been the subject of any prior payment request submitted to the City. 3. The Owner is in compliance with the terms and provisions of the Agreement and no portion of the amount being requested to be paid was previously paid. "oe I hereby declare under penalty of perjury that the above representations and warranties „.no, are true and correct. OWNER: CITY: Payment Request Approved for Submission to the Fiscal Agent By: By: Authorized Representative of Owner Director of Community Development Date: Date: B -2 -1 AGENDA ITEM NO. PAGE — -�+'+ ATTACHMENT 1 SUMMARY OF FEES TO BE PAID AS PART OF PAYMENT REQUEST NO. Fee Category Amount Requested No. and Description of Lots/DUs for which Fees Requested B -2 -2 AGENDA ITEM N0. PAGE In_OF EXHIBIT C FORM OF ASSIGNMENT AND ASSUMPTION AGREEMENT Pursuant to a Funding, Construction and Acquisition Agreement dated as of 1, 2005 (the "Agreement ") by and between the City of Lake Elsinore ( "City ") and KB Home Coastal, Inc., a California corporation, which Agreement is hereby incorporated herein by this reference, and for good and valuable consideration, receipt of which is hereby acknowledged, the undersigned agree as follows (all capitalized terms used but not otherwise defined herein shall have the respective meanings given to such terms in the Agreement): 1. The assignment and assumption provided for under this Assignment and Assumption Agreement ( "Assignment ") is made together with the sale, transfer or assignment of all or a part of the property subject to the Agreement. The property sold, transferred or assigned together with this Assignment is included within the District and described in "Attachment 1" attached hereto and incorporated herein by this reference (the "Subject Property "). 2. , as the assignor hereof (the "Assignor ") hereby grants, sells, transfers, conveys assigns and delegates to ( "Assignee "), all of Assignor's rights, title, interest, benefits, privileges, duties and obligations arising under or from the Agreement with respect to the Subject Property and the Public Facilities or Discrete Components authorized to be funded with respect to the District except for the following: 3. Assignee hereby accepts the foregoing assignment and unconditionally assumes and agrees to perform all of the duties and obligations of Assignor arising under or from the Agreement as owner of the Subject Property. 4. The sale, transfer or assignment of the Subject Property and the assignment and assumption provided for under this Assignment are the subject of additional agreements between Assignor and Assignee. Notwithstanding any term, condition or provision of such additional agreements, the rights of the City arising under or from the Agreement and this Assignment shall not be affected, diminished or defeated in any way, except upon the express written agreement of the City. 5. Assignor and Assignee execute this Assignment pursuant to Section 9.4 of the Agreement, and the City evidences its consent to this Assignment by signing below. C -1 AGENDA ITEM NO. PAGEaOF A* -- IN WITNESS WHEREOF, the parties have executed this Assignment on ASSIGNOR: By: _ Name: Title: ASSIGNEE: By: _ Name: Title: CITY: CITY OF LAKE ELSINORE By: Its: City Manager C -2 AGENDA ITEM MO• =1= PAGF�_OF� ATTACHMENT DESCRIPTION OF SUBJECT PROPERTY N"We C -3 AGENDA ITEM NO. L2 PAM I .,0-11 ,O-. City of Lake Elsinore — EVMWD Group Meeting Agenda January 11, 2006, 4:30 p.m. City Hall I . Lake Elsinore /Canyon Lake TMDL Task Force Agreement 2. Status of revised Local Cooperative Agreement (LCA) to permit supplemental water addition at 1,247'MSL. 3. Discuss Other Issues 4. Discuss Future Meeting Date Participants: City Mayor Robert Magee Mayor Pro Tem Robert Schiffner Robert Brady, City Manager Pat Kilroy, Dir. of Lake & Aquatic Resources EVMWD Phil Williams, Board Member Kris Anderson, Board Member Ron Young, General Manager Phil Miller, Director of Engineering AGENDA ITEM NO. (-H__ PACE 0 O4, "CITY" CITY OF LAKE ELSINORE, a municipal 1"Roe corporation Dated: , 2005 By: ATTEST: FREDERICK RAY, CITY CLERK I' FREDERICK RAY APPROVED AS TO FORM: VAN BLARCOM, LEIBOLD, McCLENDON & MANN, P.C. City Attorney an I :x:3:1_ 11 1: • • Mayor "OWNER" KB HOME COASTAL, INC., a California corporation Dated: , 2006 By: Its: 45567927.9 20 AGENDA ITEM NO. PAGE�Q�.OF N"00 A#-1 DRAFT 12/28/2005 NEW ISSUE -BOOK ENTRY ONLY NOT RATED (See "CONCLUDING INFORMATION - No Rating on the Bonds" herein) In the opinion of Fulbright & Jaworski L.L.P., Los Angeles, California, Bond Counsel, under existing law, interest on the Bonds is exempt from personal income taxes of the State of California and, assuming compliance with the tax covenants described herein, interest on the Bonds is excluded pursuant to section 103(a) of the Internal Revenue Code of 1986 (the "Code') from the gross income of the owners thereof for federal income tax purposes and is not an item of preference under section 57(a) of the Code for purposes of the federal alternative minimum tax. See, however, "LEGAL MATTERS - Tax Exemption" herein regarding certain other tax considerations. COUNTY OF RIVERSIDE STATE OF CALIFORNIA $99770,000* CITY OF LAKE ELSINORE COMMUNITY FACILITES DISTRICT NO. 2005 -1 (SERENITY) SPECIAL TAX BONDS 2006 SERIES A Dated: Date of Delivery Due: September 1, As Shown Below The cover page contains certain information for quick reference only. It is not a summary of the issue. Potential investors must read the entire Official Statement to obtain information essential to the making of an informed investment decision. Investment in the Bonds involves risks. See "BONDOWNERS' RISKS" herein for a discussion of special risk factors that should be considered in evaluating the investment quality of the Bonds. Interest on the Bonds is payable semiannually on March 1 and September I of each year, commencing September 1, 2006, until maturity or earlier redemption (see "THE BONDS - General Provisions" and "THE BONDS - Redemption' herein). The Bonds will be issued under the Mello -Roos Community Facilities Act of 1982, as amended (Sections 53311 et seq. of the Government Code of the State of California). Repayment of the Bonds will be from Special Taxes (as defined herein) to be levied within City of Lake Elsinore Community Facilities District No. 2005 -1 (Serenity) and certain other funds held under the Fiscal Agent Agreement, as described herein (see "SOURCES OF PAYMENT FOR THE BONDS" and "BONDOWNERS' RISKS" herein). It is anticipated that the Bonds, in book -entry form, will be available for delivery through the facilities of The Depository Trust Company on or about , 2006 (see "THE BONDS - General Provisions - Book -Entry Only System" herein). The date of the Official Statement is 2006. * Preliminary, subject to change. SOUTHWEST SECURITIES AGENDA i7E�i P+o --� PAGE —OF—Z2—�L The information contained within this Official Statement was prepared under the direction of the City by the following firm serving as Financing Consultant to the City. Rod Gunn Associates, Inc. MATURITY SCHEDULE $ * SERIAL BONDS Maturity Date Principal Interest Reoffering Maturity Date Principal Interest Reoffering September I Amount* Rate Rate September I Amount* Rate Rate 2007 2014 2008 2015 2009 2016 2010 2017 2011 2018 2012 2019 2013 2020 $,000* % Term Bond due September 1, 2026, Price % $1000* % Term Bond due September 1, 2036, Price % The Bonds will be issued under the Mello -Roos Community Facilities Act of 1982, as amended (Sections 53311 et seq. of the Government Code of the State of California). Repayment of the Bonds will be from Special Taxes (as defined herein) to be levied within City of Lake Elsinore Community Facilities District No. 2005 -1 (Serenity) and certain other funds held under the Fiscal Agent Agreement, as described herein (see "SOURCES OF PAYMENT FOR THE BONDS" and "BONDOWNERS' RISKS" herein). It is anticipated that the Bonds, in book -entry form, will be available for delivery through the facilities of The Depository Trust Company on or about , 2006 (see "THE BONDS - General Provisions - Book -Entry Only System" herein). The date of the Official Statement is 2006. * Preliminary, subject to change. SOUTHWEST SECURITIES AGENDA i7E�i P+o --� PAGE —OF—Z2—�L CITY OF LAKE ELSINORE COMMUNITY FACILITIES DISTRICT NO. 2005-1 (SERENITY) CITY COUNCIL Robert Magee, Mayor Robert Schiffner, Mayor Pro Tem Genie Kelley, Council Member Thomas Buckley, Council Member Daryl Hickman, Council Member CITY STAFF Robert Brady, City Manager Matt N. Pressey, Director ofAdministrative Services Frederick Ray, City Clerk PROFESSIONAL SERVICES Bond Counsel and Disclosure Counsel Fulbright & Jaworski L.L.P. Los Angeles, California City Attorney Van Blarcom, Leibold, McClendon & Mann, P.C. Laguna Hills, California Financing Consultant Rod Gunn Associates, Inca Huntington Beach, California Fiscal Agent Union Bank of California, N.A. Los Angeles, California Underwriter Southwest Securities, Inc. Newport Beach, California Underwriter's Counsel McFarlin & Anderson LLP Lake Forest, California Special Tax Consultant Harris & Associates Irvine, California Appraiser Harris Realty Appraisal Newport Beach, California Market Absorption Consultant Empire Economics, Inc. Capistrano Beach, California FOR ADDITIONAL INFORMATION Matt Pressey, City of Lake Elsinore, California (951) 674 -3124 Rod Gunn Associates, Inc. (714) 841 -3993 Southwest Securities, Inc. (949) 717 -2000 C'!2 AGENDA ITEM NO.,� � PAGE J qZ:. OF TABLE 01 INTRODUCTORY STATEMENT .........................1 The City and the District .............. ..............................1 Security and Sources of Repayment ..........................2 Purpose........................................ ..............................3 TheBonds .................................... ..............................3 LegalMatters ............................... ..............................4 Professional Services ................... ..............................4 Offering of the Bonds .................. ..............................5 Information Concerning this Official Statement ........ 5 SELECTED ESSENTIAL FACTS ............................8 THEBONDS ................................ .............................10 General........................................ .............................19 General Provisions ...................... .............................10 Limited Obligation ...................... .............................19 Authorization .............................. .............................13 Insufficiency of Special Taxes .... .............................19 Estimated Sources and Uses of Funds .....................13 Concentration of Ownership ....... .............................20 Investment of Funds ................... .............................13 No Personal Liability for Special Taxes.. ................. Redemption................................. .............................14 Foreclosure and Sale Proceedings ...........................20 SOURCES OF PAYMENT FOR THE BONDS ..... 16 General...................................... ............................... 16 SpecialTaxes .............................. .............................16 Reserve Account ......................... .............................16 Capitalized Interest ..................... .............................17 23 Covenant for Superior Court Foreclosure ................17 23 Special Taxes Are Not Within Teeter Plan ...............18 BONDOWNERS' RISKS ............ .............................19 General........................................ .............................19 City Accounting Records and Financial Limited Obligation ...................... .............................19 Statements.............................. ............................... Insufficiency of Special Taxes .... .............................19 Administration of the Special Tax ...........................58 Concentration of Ownership ....... .............................20 Rate and Method of Apportionment ........................58 No Personal Liability for Special Taxes.. ................. 20 Foreclosure and Sale Proceedings ...........................20 LEGAL MATTERS ..................... .............................64 LandValues ................................ .............................21 Value to Lien Ratio ..................... .............................22 The Progress of Land Development; Risks of Real Estate Secured Investments ..........................22 Geologic, Topographic and Climatic Conditions ..... 23 Endangered and Threatened Species ........................ 23 Earthquakes................................ .............................24 Legal Requirements .................... .............................24 Other Possible Claims Upon the Values of an Assessed Parcel ........................ .............................24 Bankruptcy Proceedings ............. .............................25 Bankruptcy and Foreclosure Delays ........................25 Additional Taxation .................... .............................26 Parity Taxes and Special Assessments .....................26 Disclosure to Future Land Buyers ...........................27 Billing of Special Taxes .............. .............................27 Collection of Special Tax ............ .............................27 Maximum Rates .......................... .............................28 Exempt Properties ....................... .............................28 Insufficient Special Taxes ........... .............................29 No Acceleration Provision .......... .............................29 Property Controlled by Federal Deposit Insurance Corporation and other Federal Agencies.................................. .............................29 CONTENTS Limitations on Remedies ............ .............................30 Right to Vote on Taxes Act ......... .............................30 Ballot Initiatives and Legislative Measures .............31 Early Bond Redemption ............. .............................31 Loss of Tax Exemption ............... .............................31 IRSAudits .................................. .............................32 Secondary Market ....................... .............................32 Debt Service Coverage ............... .............................33 THECITY .................................... .............................35 a THE DISTRICTERROR! BOOKMARK NOT DEFINED. Boundaries of the District ........... .............................36 Facilities and Fees to be Financed by the District..................................... .............................36 The Developer ............................ .............................39 Description of Development ....... .............................41 Financing Plan ............................ .............................44 DEBT STRUCTURE ................... .............................46 Outstanding Indebtedness ........... .............................46 Additional Obligations ............... .............................46 Direct and Overlapping Debt ...... .............................46 Scheduled Debt Service on the Bonds .....................47 SUMMARY OF THE FISCAL AGENT AGREEMENT .......................... .............................48 FINANCIAL INFORMATION .. .............................58 City Accounting Records and Financial Statements.............................. ............................... 58 Administration of the Special Tax ...........................58 67 Rate and Method of Apportionment ........................58 67 Delinquencies and Foreclosure Actions ...................63 LEGAL MATTERS ..................... .............................64 Enforceability of Remedies ........ .............................64 Approval of Legal Proceedings .. .............................64 Tax Exemption ............................ .............................64 Absence of Litigation ................. .............................66 CONCLUDING INFORMATION ..........................67 No Rating on the Bonds .............. .............................67 Underwriting............................. ............................... 67 Experts...................................... ............................... 67 The Financing Consultant... 67 Additional Information ............... .............................67 References .................................. .............................68 Execution................:................... .............................68 AGENDA ITEM NO. PAGE _OF Z�S APPENDIX A DEFINITIONS OF CERTAIN TERMS USED IN THE FISCAL AGENT AGREEMENT..................... ............................... A -1 APPENDIX B MARKET ABSORPTION STUDY................................... ............................... B -1 APPENDIX C APPRAISAL REPORT ................ C -1 APPENDIX D RATE AND METHOD OF APPORTIONMENT ............ ............................... D -1 APPENDIX E FORMS OF CONTINUING DISCLOSURE AGREEMENTS ........................E -1 APPENDIX F PROPOSED FORM OF BOND COUNSEL OPINION .............. ............................F -I lul rmn AGENDA ITEM NO._„A__._ PA GE OES Lake Elsinore Vicinity Map 4R AGENDA ITEM N0. PAO �s�.-OF'Z5— OFFICIAL STATEMENT $990209000* CITY OF LAKE ELSINORE COMMUNITY FACILITIES DISTRICT NO. 2005-1 (SERENITY) SPECIAL TAX BONDS 2006 SERIES A This Official Statement which includes the cover page and appendices (the "Official Statement ") is provided to furnish certain information concerning the sale of the City of Lake Elsinore Community Facilities District No. 2005 -1 (Serenity) Special Tax Bonds 2006, Series A (the "Bonds "), in the aggregate principal amount of $9,020,000 *. INTRODUCTORY STATEMENT This Introductory Statement contains only a brief description of this issue and does not purport to be complete. This Introductory Statement is subject in all respects to more complete information in the entire Official Statement and the offering of the Bonds to potential investors is made only by means of the entire Official Statement and the documents summarized herein. Investment in the Bonds involves risks. Potential investors must read the entire Official Statement to obtain information essential to the making of an informed investment decision with respect to the Bonds (see `BONDOWNERS'RISKS" herein). The City and the District 2W. The City. The City of Lake Elsinore (the "City") was founded in 1883 and incorporated on April 23, 1888 in San Diego County. In 1893 the Elsinore Valley, previously in San Diego County, became a part \r/ of the new County of Riverside. The City encompasses approximately 39 square miles, with over 10 miles of lake shore, and is Iocated at the southwestern end of Riverside County. It is 73 miles east of downtown Los Angeles and 74 miles north of downtown San Diego. Neighboring communities include Canyon Lake, Murrieta and Temecula (see "Vicinity Map" herein). The District. The Mello -Roos Community Facilities Act of 1982, as amended, constituting Section 53311 et seq. of the Government Code of the State of California (the "Act "), was enacted by the California Legislature to provide an alternative method of financing certain public facilities, improvements and services. The Act authorizes local governmental entities to establish community facilities districts as legally constituted governmental entities within defined boundaries, with the legislative body of the local applicable governmental entity acting on behalf of such district. Subject to approval by at least a two - thirds vote of the votes cast by qualified electors within such district and compliance with the provisions of the Act, the legislative body may issue bonds for such community facilities district established by it and may levy and collect a special tax within such district to repay such bonds (see "SELECTED ESSENTIAL FACTS" and "FINANCIAL INFORMATION - Rate and Method of Apportionment" herein). * Preliminary, subject to change. AGENDA ITEM N0. PACE Z2 `rdr 10 ` On January 25, 2005, the City formed City of Lake Elsinore Community Facilities District No. 2005 -1 (Serenity) (the "District ") by the adoption of Resolution No2005 -10. The sole qualified elector at the time within the District voted in favor of the incurrence of bonded indebtedness. The maximum authorized bonded indebtedness for the District is $12,000,000. (see "DEBT STRUCTURE," "SELECTED ESSENTIAL FACTS" and "FINANCIAL INFORMATION - Rate and Method of Apportionment" herein). The special tax authorized to be levied within the District to pay for certain facilities, capital fees and to pay debt service on the Bonds is described in the Rate and Method of Apportionment (the "Rate and Method of Apportionment ") attached hereto as "APPENDIX D - RATE AND METHOD OF APPORTIONMENT" and shall be referred to herein as the "Special Tax" or "Special Taxes." The boundaries of the District coincide with the development generally known as Serenity. The District is located in the southern portion of the City, 3 miles west of the Interstate 15 freeway at Baxter Street. The Serenity residential community is planned for a total of 233 detached single family homes on approximately 77.6 gross acres (the "Development ") (see "THE DISTRICT - Description of Development" herein). As of January 3, 2006, KB HOME Coastal Inc. (the "Developer "), KBOne (with respect to 5 temporary model homes in one tract) and 6 individual homeowners owned all of the land within the District (see "THE DISTRICT-The Developer" and `BONDOWNERS RISKS — Concentration of Ownership" herein). The District coincides with the boundaries of Tract No. 19344 -3 and Tract No. 30846. As of January 3, 2006, the 1 I lots within Tract No. 19344 -3 were improved to finished lot condition with 5 model homes complete and 6 completed production homes all of which have been sold and escrow closed. Tract No. 30846 is in a rough graded to blue top condition with 11 production units under construction. As of January 3, 2006 an additional 64 homes were under contract but escrows had not yet closed. As is common with sales at this stage of development, the sales are subject to a number of contingencies and the Developer can provide no assurance that the current sales will result in closed escrows. Security and Sources of Repayment The Bonds. The Bonds are secured under the Fiscal Agent Agreement between the District and Union Bank of California, N.A., Los Angeles, California, as fiscal agent (the "Fiscal Agent ") dated as of February 1, 2006 (the "Fiscal Agent Agreement ") (see "SUMMARY OF THE FISCAL AGENT AGREEMENT" herein). The District has covenanted in the Fiscal Agent. Agreement to levy in each Fiscal Year the Special Taxes on parcels of land pledged to the repayment of the Bonds in an amount sufficient to pay debt service on the Bonds and the administrative expenses subject to the limitation on the Maximum Annual Special Tax that may be Ievied on such land within the District (see "THE DISTRICT" and "FINANCIAL INFORMATION - Rate and Method of Apportionment" for a description of the Special Tax within the District) (see "SOURCES OF PAYMENT FOR THE BONDS" and `BONDOWNERS' RISKS" herein). The Bonds are special obligations of the District. The Bonds do not constitute a debt or liability of the City, the State of California (the "State ") or of any political subdivision thereof, other than the District. The District shall only be obligated to pay the principal of the Bonds, or the interest thereon, from the funds described herein, and neither the faith and credit nor the taxing power of the City, the State of California or any of its political subdivisions is pledged to the payment of the principal of or the interest on the Bonds. See "SOURCES OF PAYMENT FOR THE BONDS" and "BONDOWNERS' RISKS" herein. 2 AGENDA ITEM N0. pAGEOF22 r../ Purpose The Bonds. The Bonds are being issued to provide the District with funds. to finance public infrastructure, including certain capital fees imposed by the City and the Elsinore Valley Municipal Water District, related to the District (the "Facilities ") (see "THE DISTRICT — Facilities to be Financed by the District "), to fund interest on the Bonds to and including September 1, 2006, to pay the expenses of the District and the Developer in connection with the formation of the District and issuance of the Bonds and to make a deposit to the Reserve Account. The amount of the deposit into the Reserve Account will be in the amount equal to $ * (see "THE BONDS — Estimated Sources and Uses of Funds" herein). The Bonds Redemption. The Bonds maturing September 1, 2026 and September 1, 2036 are subject to mandatory redemption, without premium, prior to their maturity date, in part by lot on September I in each year commencing September 1, 2021 in the case of the Bonds maturing September 1, 2026 and September 1, 2027 in the case of the Bonds maturing September 1, 2036 from sinking fund payments under the Fiscal Agent Agreement (see "THE BONDS - Redemption - Mandatory Redemption" herein). The Bonds are subject to optional redemption prior to maturity, in whole or in part, by lot, on September 1, 2012, and on any date thereafter at a redemption price equal to the principal amount thereof, plus accrued interest to the date of redemption, plus a premium, as described herein (see "THE BONDS - Redemption - Optional Redemption" herein). The Bonds are subject to redemption, in part, on any date from amounts constituting prepayments of Special Taxes at a redemption price equal to the principal amount thereof, plus accrued interest to the date of redemption, plus a premium, as described herein (see "THE BONDS - Redemption — Special Mandatory ..I Redemption from Prepayment of Special Taxes" herein). The Bonds are subject to special mandatory redemption in whole or in part, on any date without premium under certain other circumstances as described herein (see "THE BONDS — Redemption" herein). Denominations. The Bonds will be issued in the minimum denomination of $5,000 each or any integral multiple thereof (see "THE BONDS - General Provisions" herein). Registration, Transfer and Exchange. The Bonds will be issued in fully registered form without coupons. Any Bond may, in accordance with its terms, be transferred or exchanged, pursuant to the provisions of the Fiscal Agent Agreement (see "THE BONDS - General Provisions - Transfer or Exchange of Bonds" herein). When delivered, the Bonds will be registered in the name of The Depository Trust Company, New York, New York ( "DTC "), or its nominee. DTC will act as securities depository for the Bonds. Individual purchases of Bonds will be made in book -entry form only in the principal amount of $5,000 each or any integral thereof. Purchasers of the Bonds will not receive certificates representing their Bonds (see "THE BONDS - General Provisions - Book -Entry Only System" herein). * Preliminary, subject to change AGENDA ITEM NO. L�q PAGE_ &OF z;- /'1- Payment. Principal of the Bonds and any premium upon redemption will be payable in each of the years and in the amounts set forth on the cover page hereof upon surrender at the corporate trust office of the Fiscal Agent in Los Angeles, California. Interest on the Bonds will be paid by check of the Fiscal Agent mailed by first class mail on the Interest Payment Date to the person entitled thereto (except as otherwise described herein for interest paid to an account in the continental United States of America by wire transfer as requested in writing no later than the applicable Record Date by owners of $1,000,000 or more in aggregate principal amount of Bonds) (see "THE BONDS - General Provisions" herein). Initially, interest on and principal and premium, if any, of the Bonds will be payable when due by wire of the Fiscal Agent to DTC which will in turn remit such interest, principal and premium, if any, to DTC Participants (as defined herein), which will in turn remit such interest, principal and premium, if any, to Beneficial Owners (as defined herein) of the Bonds (see "THE BONDS - General Provisions - Book -Entry Only System" herein). Notice. Notice of any redemption will be mailed by first class mail by the Fiscal Agent at least thirty (30) but no more than sixty (60) days prior to the date fixed for redemption to the registered owners of any Bonds designated for redemption and to the Securities Depositories and Information Services provided in the Fiscal Agent Agreement. Neither failure to receive such notice nor any defect in the notice so mailed will affect the sufficiency of the proceedings for redemption of such Bonds or the cessation of accrual of interest on the redemption date (see "THE BONDS - Redemption - Notice of Redemption" herein). Legal Matters The legal proceedings in connection with the issuance of the Bonds are subject to the approving opinion of Fulbright & Jaworski L.L.P., Los Angeles, California, as Bond Counsel. Such opinion, and certain tax consequences incident to the ownership of the Bonds, including certain exceptions to the tax treatment of interest, are described more fully under the heading "LEGAL MATTERS" herein. Certain legal matters will be passed on for the City by Van Blarcom, Leibold, McClendon & Mann, P.C., Laguna Hills, California, as City Attorney and by Fulbright & Jaworski L.L.P., Los Angeles, California, Disclosure Counsel. Certain legal matters will be passed on for the Underwriter by McFarlin & Anderson LLP, Lake Forest, California, Underwriter's Counsel. Certain legal matters will be passed upon for the Developer. by its counsel, Pillsbury Winthrop Shaw Pittman LLP, Century City, California. Professional Services Union Bank of California, N.A., Los Angeles, California, will serve as Fiscal Agent under the Fiscal Agent Agreement. The Fiscal Agent will act on behalf of the Bondowners for the purpose of receiving all moneys required to be paid to the Fiscal Agent, to allocate, use and apply the same, to hold, receive and disburse the Special Taxes and other funds held under the Fiscal Agent Agreement, and otherwise to hold all the offices and perform all the functions and duties provided in the Fiscal Agent Agreement to be held and performed by the Fiscal Agent. Harris & Associates, Irvine, California, Special Tax Consultant, prepared the cash flow certificate for the District demonstrating that there will be sufficient Special Taxes, assuming timely receipt, to pay debt service on the Bonds (see "CONCLUDING INFORMATION — Experts" herein). Rod Gunn Associates, Inc., Huntington Beach, California, Financing Consultant, advised the City as to the financial structure and certain other financial matters relating to the Bonds. Fees payable to Bond Counsel, Disclosure Counsel, Underwriter's Counsel and the Financing Consultant are contingent upon the sale and delivery of the Bonds. AGENDA ITEM NO q4 PAGE 14q OF 22 Offering of the Bonds Authority for Issuance. The Bonds are to be issued and secured pursuant to the Fiscal Agent Agreement, as authorized by resolution. of the City adopted on January 10, 2006. The Bonds are also issued in accordance with the laws of the State, and particularly the Mello -Roos Community Facilities Act of 1982, as amended (Section 53311 et seq. of the Government Code of the State). The Bonds are being sold to Southwest Securities, Inc. (the "Underwriter ") pursuant to a Purchase Contract approved by the City by Resolution adopted on , 2006. Offering and Delivery of the Bonds. The Bonds are offered when, as and if issued, subject to the approval as to their legality by Fulbright & Jaworski L.L.P., Los Angeles, California, as Bond Counsel. Certain legal matters will be passed upon for the City by Van Blarcom, Leibold, McClendon & Mann, P.C., Laguna Hills, California, as City Attorney and by Fulbright & Jaworski L.L.P., Los Angeles, California, Disclosure Counsel. Certain legal matters will be passed upon for the Underwriter by McFarlin & Anderson, LLP, Lake Forest, California, as Underwriter's Counsel. Certain legal matters will be passed upon for the Developer. by its counsel, Pillsbury Winthrop Shaw Pittman LLP, Century City, California. It is anticipated that the Bonds, in book -entry form, will be available for delivery through the facilities of The Depository Trust Company on or about No dealer, broker, salesperson or other person has been authorized by the District, the City, the Financing Consultant or the Underwriter to give any information or to make any representations in connection with the offer or sale of the Bonds described herein, other than as contained in this Official Statement, and if given or made, such other information or representations must not be relied upon as having been authorized by any of the foregoing. This Official Statement does not constitute an offer to sell nor the solicitation of an offer to buy, nor shall there be any sale of the Bonds by any person in any jurisdiction in which it is unlawful for such person to make such offer, solicitation or sale or to any person to whom it is unlawful to make such offer, solicitation or sale. IN CONNECTION WITH THE OFFERING OF THE BONDS, THE UNDERWRITER MAY OVERALLOT OR EFFECT TRANSACTIONS WHICH STABILIZE OR MAINTAIN THE MARKET PRICE OF THE BONDS AT A LEVEL ABOVE THAT WHICH MIGHT OTHERWISE PREVAIL IN THE OPEN MARKET. SUCH STABILIZING, IF COMMENCED, MAY BE DISCONTINUED AT ANY TIME. THE UNDERWRITER MAY OFFER AND SELL THE BONDS TO CERTAIN DEALERS AND DEALER BANKS AND BANKS ACTING AS AGENT AT PRICES LOWER THAN THE PUBLIC OFFERING PRICES STATED ON THE COVER PAGE HEREOF AND SAID PUBLIC OFFERING PRICES MAY BE CHANGED FROM TIME TO TIME BY THE UNDERWRITER. Information Concerning this Official Statement This Official Statement speaks only as of its date. The information set forth herein has been obtained by the Financing Consultant from the City, the District, the Developer and other sources which are believed to be reliable, but such information is not guaranteed as to accuracy or completeness, nor has it been independently verified and is not to be construed as a representation by the Financing Consultant, the City or the District. The Underwriter has provided the following sentence for inclusion in this Official Statement. The Underwriter has reviewed the information in this Official Statement in accordance with, and as a part of, its responsibilities to investors under the federal securities laws as applied to the facts and circumstances of this transaction, but the Underwriter does not guarantee the accuracy or completeness of such information. Statements contained in this Official Statement which involve estimates, forecasts or matters of opinion, whether or not expressly so described herein, are intended as such and are not to be construed as representations of fact. 5 AGENDA ITEM NO O, ,, � PAGE `'�-- T V, Preliminary Official Statement Deemed Final. The information set forth herein is in a form deemed final, as of its date, by the District for the purpose of Rule 15c2 -12 under the Securities Exchange Act of 1934, as amended (except for the omission of certain information permitted to be omitted under said Rule). The information herein is subject to revision, amendment and completion in a final official Statement. The information and expressions of opinion herein are subject to change without notice and the delivery of this Official Statement shall not, under any circumstances, create any implication that there has been no change in the information or opinions set forth herein or in the affairs of the District since the date hereof. Continuing Disclosure. The District and the Developer have covenanted for the benefit of owners of the Bonds to provide certain financial information and operating data relating to the District each year. The District has agreed to make such information available not later than 225 days after the end of the City's fiscal year, commencing with fiscal year 2005/06 and the Developer has agreed to make such information available not later than May 1 of each year until the obligation is terminated, commencing May 1, 2006(each an "Annual Report" and collectively the "Annual Reports "), and to provide notices of the occurrences of certain enumerated events, if material. The District and the Developer shall file or cause to be filed the Dissemination Agent the Annual Reports with each Nationally Recognized Municipal Securities Information Repository and with the appropriate State information depository, if any. The notices of material events will be filed by the Dissemination Agent on behalf of the District and the Developer with the Municipal Securities Rulemaking Board (and with the appropriate State information depository, if any) or each Nationally Recognized Municipal Securities Information Repository. The specific nature of information to be contained in the Annual Reports or the notice of material events is summarized in "APPENDIX E -- FORMS OF CONTINUING DISCLOSURE AGREEMENTS." These covenants have been made by the District and the Developer in order to assist the Underwriter in complying with Rule 15c2- 12(b)(5) (the "Rule ") promulgated by the Securities and Exchange Commission. The Developer will be released from its obligation under its Continuing Disclosure Agreement to provide its �., Annual Report and notices of material events at such time as the property owned by the Developer is no longer responsible for payment of 20% or more of the Special Taxes in the District. The District has never failed to meet its continuing disclosure requirements under such rule in any material manner. An officer or representative executing a certificate on behalf of the Developer will certify that to his or her knowledge, the Developer has not previously failed to comply in any material respect with undertakings by it under the Rule to provide periodic continuing disclosure reports or noticed of material events in California within the past five years.. Each year until the final maturity of the Bonds, the District is required to, not later than October 30 of each year, supply the following information to the California Debt and Investment Advisory Commission by mail, postage prepaid: 1. The principal amount of Bonds outstanding. 2. The balance in any Bonds reserve fund. 3. The balance in any capitalized interest fund. 4. The number of parcels which are delinquent with respect to their Special Tax payments, the amount that each parcel is delinquent, the length of time that each has been delinquent, and when foreclosure was commenced for each delinquent parcel. 5. The balance in any construction funds. 6. The assessed value of all parcels subject to Special Tax to repay the Bonds as shown on the most recent equalized roll. In addition, the District is required to notify the California Debt and Investment Advisory Commission by mail, postage prepaid, within 10 days if any of the following events occur: 6 (- AGENDA ITEM NO. PAGE_L:!�./-OF Z� 1. The District or its Fiscal Agent fails to pay principal and interest due on any scheduled payment date. 2. Funds are withdrawn from any reserve fund to pay principal and interest on the Bonds. Neither the District nor the California Debt and Investment Advisory Commission will be liable for any inadvertent error in reporting the required information. The failure by the District to comply with its reporting obligations is not a default under the Fiscal Agent Agreement. Availability of Legal Documents. The summaries and references contained herein with respect to the Fiscal Agent Agreement, the Bonds, and other statutes or documents do not purport to be comprehensive or definitive and are qualified by reference to each such document or statute, and references to the Bonds are qualified in their entirety by reference to the form thereof included in the Fiscal Agent Agreement. Definitions of certain terms used herein are set forth in "APPENDIX A,, hereto. Copies of the documents described herein are available for inspection during the period of initial offering of the Bonds at the offices of the Financing Consultant, Rod Gunn Associates, Inc., 16371 Gothard Street, Suite A, Huntington Beach, California 92647 -3652, telephone (714) 841 -3993, or the Underwriter, Southwest Securities, Inc., 620 Newport Center Drive, Suite 300, Newport Beach, California 92660, telephone (949) 717 -2000. Copies of these documents may be obtained after delivery of the Bonds from the City at 130 S. Main Street, Lake Elsinore, California 92530, telephone (951) 674 -3124. N%./` AGENDA ITEM NO. PAGE �UF 2 SELECTED ESSENTIAL FACTS The following summary does not purport to be complete. Reference is hereby made to the complete Official Statement in this regard. Furthermore, the following summary makes certain assumptions regarding valuation of property within the District. Neither the City nor the District makes any representation as to the current value of property in the District or provides any assurance as to the estimated values ofproperty being achieved (see "BONDOWNERS'RISKS" herein). THE BONDS Principal Amount of Bonds: Additional Bonds: First Optional Redemption Date: First Special Mandatory Redemption Date: $9,020,000* No additional bonds on a parity with the Bonds are authorized (see "DEBT STRUCTURE — Additional Obligations" herein). September 1, 2012 at 102% of Principal Amount (see "THE BONDS - Redemption" herein). On any date on or after March 1, 2006 from prepayment of Special Taxes at a premium, as described herein. Primary Source of Revenues for Repayment: Special Taxes levied within the District as defined herein (see "FINANCIAL INFORMATION - Rate and Method of Apportionment" herein). Priority: All Bonds are secured by a first pledge of and lien on all Special Taxes levied within the District (see "SOURCES OF PAYMENT FOR THE BONDS" and "BONDOWNERS' RISKS" herein). THE DISTRICT Estimated Acreage: 77.6 gross acres Discounted "Bulk Value" of Parcels in the District $29,400,000 Ratio of Market Value to Principal Amount of Bonds: 3.26 to 1 *. The value to lien ratio of individual parcels may be less or more than the aggregate value to lien ratio for the District (see "Bondowners Risks - Concentration of Ownership" herein) . Minimum Ratio of Authorized Maximum Annual Special Taxes in any Fiscal Year to Annual Debt Service on the Bonds: 110% * Preliminary, subject to change 8 AGENDA ITEE�'N0 , pAGE. LLa_0FZZ PROPERTY OWNERS AND DEVELOPMENT Property Owners: KB HOME Coastal Inc., KBOne (with respect to 5 temporary model homes in one tract) and 6 individual homeowners (see "BONDOWNERS' RISKS Concentration of Ownership" and "THE DISTRICT - The Developer" herein). Description of Proposed Development: The Developer expects to construct a total of 233 detached single family homes in 2 residential communities. As of January 3, 2006, 11 homes were sold (6 to individual homeowners and 5 to KBOne), and 64 were under contract with individual homeowners (but none had yet closed escrow)(see "THE DISTRICT- Description of Development" herein). Government Approvals: Final Maps have been recorded for Tract Nos. 19344 -3 and 30846 Start of production homes: Production homes started in November 2004 for Tract No. 19344 -3 and July 2005 for Tract No. 30846 Estimated Absorption Period: 2005 to First Quarter 2008 Estimated Price Range of Homes: $345,000 to $430,000 Estimated Home Sizes: 1,740 to 2,762 sq. ft. AGENDA ITEM N0. PAGEl�jy of ZZ L�-- -.a/' THE BONDS General Provisions Repayment of the Bonds. Interest is payable on the Bonds at the rates per annum set forth on the cover page hereof. Interest with respect to the Bonds will be computed on the basis of a year consisting of 360 days and twelve 30 -day months. Each Bond will be dated the Delivery Date, and interest with respect thereto will be payable from the Interest Payment Date next preceding the date of authentication thereof, unless (a) it is authenticated after a Record Date and on or before an Interest Payment Date and after the close of business on the preceding Record Date, in which event interest with respect thereto will be payable from such Interest Payment Date; (b) it is authenticated on or before August 15, 2006, in which event interest with respect thereto will be payable from the Delivery Date; or (c) interest with respect to any Outstanding Bond is in default, in which event interest with respect thereto will be payable from the date to which interest has been paid in full, payable on each Interest Payment Date. Interest with respect to the Bonds will be payable by check of the Fiscal Agent mailed by first class mail on the applicable Interest Payment Date to the Owners thereof provided that in the case of an Owner of $1,000,000 or greater in principal amount of Outstanding Bonds, such payment may, at such Owner's option, be made by wire transfer of immediately available funds to an account in the United States in accordance with written instructions provided prior to the applicable Record Date to the Fiscal Agent by such Owner. The Owners of the Bonds shown on the Registration Books on the Record Date for the Interest Payment Date will be deemed to be the Owners of the Bonds on said Interest Payment Date for the purpose of the paying of interest. Principal of the Bonds and any premium upon early redemption is payable upon presentation and surrender thereof, at the corporate trust office of the Fiscal Agent in Los Angeles, California. Book- Entry-Only System. The information in this section concerning DTC and DTC's book -entry system has been obtained from sources that the City believes to be reliable, but the City takes no responsibility for the accuracy thereof. The Depository Trust Company ( "DTC "), New York, NY, will act as securities depository for the Bonds. The Bonds will be issued as fully- registered securities registered in the name of Cede & Co. (DTC's partnership nominee) or such other name as may be requested by an authorized representative of DTC. One fully- registered security certificate will be issued for each maturity of the Bonds, each in the aggregate principal amount of such maturity, and will be deposited with DTC. DTC, the world's largest depository, is a limited- purpose trust company organized under the New York Banking Law, a "banking organization" within the meaning of the New York Banking Law, a member of the Federal Reserve System, a "clearing corporation" within the meaning of the New York Uniform Commercial Code, and a "clearing agency" registered pursuant to the provisions of Section 17A of the Securities Exchange Act of 1934. DTC holds and provides asset servicing for over 2.2 million issues of U.S. and non -U.S. equity corporate and municipal debt issues, and money market instruments from over 100 countries that DTC's participants ( "Direct Participants ") deposit with DTC. DTC also facilitates the post -trade settlement among Direct Participants of sales and other securities transactions in deposited securities, through electronic computerized book -entry transfers and pledges between. Direct Participants' accounts. This eliminates the need for physical movement of securities certificates. Direct Participants include both U.S. and non -U.S. securities brokers and dealers, banks, trust companies, clearing corporations, and certain other organizations. DTC is a wholly -owned subsidiary of The Depository Trust & Clearing Corporation ( "DTCC "). DTCC, in turn, is owned by a number of Direct Participants of DTC and Members of the National Securities Clearing Corporation, Fixed Income Clearing Corporation and Emerging Markets Clearing Corporation, (respectively, "NSCC ", "FICC ", and "EMCC ", also subsidiaries of DTCC), as well as by the New York Stock Exchange, Inc., the American Stock Exchange LLC, and the 10 AGENDA ITEM NQ. PAGE_JOF ZZ National Association of Securities Dealers, Inc. Access to the DTC system is also available to others such as both U.S. and non -U.S. securities brokers and dealers, banks, trust companies, and clearing corporations that clear through or maintain a custodial relationship with a Direct Participant, either directly or indirectly ( "Indirect Participants "). DTC has Standard & Poor's highest rating: AAA. The DTC Rules applicable to its Participants are on file with the Securities and Exchange Commission. More information about DTC can be found at www.dtcc.com and www.dtc.org. Purchases of the Bonds under the DTC system must be made by or through Direct Participants, which will receive a credit for the Bonds on DTC's records. The ownership interest of each actual purchaser of each Security (`Beneficial Owner ") is in turn to be recorded on the Direct and Indirect Participants' records. Beneficial Owners will not receive written confirmation from DTC of their purchase. Beneficial Owners are, however, expected to receive written confirmations providing details of the transaction, as well as periodic statements of their holdings, from the Direct or Indirect Participant through which the Beneficial Owner entered into the transaction. Transfers of ownership interests in the Bonds are to be accomplished by entries made on the books of Direct and Indirect Participants acting on behalf of Beneficial Owners. Beneficial Owners will not receive certificates representing their ownership interests in the Bonds, except in the event that use of the book -entry system for the Bonds is discontinued. To facilitate subsequent transfers, all Bonds deposited by Direct Participants with DTC are registered in the name of DTC's partnership nominee, Cede & Co., or such other name as may be requested by an authorized representative of DTC. The deposit of the Bonds with DTC and their registration in the name of Cede & Co. or such other DTC nominee do not effect any change in beneficial ownership. DTC has no knowledge of the actual Beneficial Owners of the Bonds; DTC's records reflect only the identity of the Direct Participants to whose accounts such Bonds are credited, which may or may not be the Beneficial Owners. The Direct and Indirect Participants will remain responsible for keeping account of their holdings on behalf of their customers. Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to Indirect Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be governed by arrangements among them, subject to any statutory or regulatory requirements as may be in effect from time to time. Beneficial Owners of the Bonds may wish to take certain steps to augment the transmission to them of notices of significant events with respect to the Bonds, such as redemptions, tenders, defaults, and proposed amendments to the Security documents. For example, Beneficial Owners of the Bonds may wish to ascertain that the nominee holding the Bonds for their benefit has agreed to obtain and transmit notices to Beneficial Owners. In the alternative, Beneficial Owners may wish to provide their names and addresses to the registrar and request that copies of notices be provided directly to them. Redemption notices shall be sent to DTC. If less than all of the Bonds within an issue are being redeemed, DTC's practice is to determine by lot the amount of the interest of each Direct Participant in such issue to be redeemed. Neither DTC nor Cede & Co. (nor any other DTC nominee) will consent or vote with respect. to the Bonds unless authorized by a Direct Participant in accordance with DTC's Procedures. Under its usual procedures, DTC mails an Omnibus Proxy to the issuer as soon as possible after the record date. The Omnibus Proxy assigns Cede & Co.'s consenting or voting rights to those Direct Participants to whose accounts the Bonds are credited on the record date (identified in a listing attached to the Omnibus Proxy). Payments of principal of, premium, if any, and interest evidenced by the Bonds will be made to Cede & Co., or such other nominee as may be requested by an authorized representative of DTC. DTC's practice is to credit Direct Participants' accounts upon DTC's receipt of funds and corresponding detail information from the District or the Fiscal Agent, on payable date in accordance with their respective holdings shown on DTC's records. Payments by Participants to Beneficial Owners will be governed by standing instructions and customary practices, as is the case with securities held for the accounts of 11 AGENDA ITEM NO. PAt'+E -..-OF ZZ ,fir A0__ customers in bearer form or registered in "street name," and will be the responsibility of such Participant and not of DTC (nor its nominee), the Fiscal Agent, or the District, subject to any statutory or regulatory requirements as may be in effect from time to time. Payment of principal of, premium, if any, and interest evidenced by the Bonds to Cede & Co. (or such other nominee as may be requested by an authorized representative of DTC) is the responsibility of the District or the Fiscal Agent, disbursement of such payments to Direct Participants will be the responsibility of DTC, and disbursement of such payments to the Beneficial Owners will be the responsibility of Direct and Indirect Participants. DTC may discontinue providing its services as depository with respect to the Bonds at any time by giving reasonable notice to the District or the Fiscal Agent. Under such circumstances, in the event that a successor depository is not obtained, Bond certificates are required to be printed and delivered. The District may decide to discontinue use of the system of book -entry transfers through DTC (or a successor securities depository). In that event, Bond certificates will be printed and delivered. In the event that the book -entry system is discontinued as described above, the requirements of the Fiscal Agent Agreement will apply. The foregoing information concerning DTC and DTC's book -entry system has been provided by DTC, and neither the District nor the Fiscal Agent take any responsibility for the accuracy thereof. Neither the District nor the Underwriter can and do not give any assurances that DTC, the Participants or others will distribute payments of principal, interest or premium, if any, evidenced by the Bonds paid to DTC or its nominee as the registered owner, or will distribute any redemption notices or other notices, to the Beneficial Owners, or that they will do so on a timely basis or will serve and act in the manner described in this Official Statement. Neither the District nor the Underwriter is responsible or liable for the failure of DTC or any Participant to make any payment or give any notice to a Beneficial Owner with respect to the Bonds or an error or delay relating thereto. A�l Transfer or Exchange of Bonds. Any Bond may, in accordance with its terms, be transferred or exchanged, pursuant to the provisions of the Fiscal Agent Agreement, upon surrender of such Bond for cancellation at the corporate trust office of the Fiscal Agent. Whenever any Bond or Bonds shall be surrendered for transfer or exchange, the Fiscal Agent shall authenticate and deliver a new Bond or Bonds for like aggregate principal amount. The Fiscal Agent may require the payment by the Bondowner requesting such transfer or exchange of any tax or other governmental charge required to be paid with respect to such transfer or exchange. The Fiscal Agent is not required to transfer or exchange (a) any Bonds or portions thereof during the period established by the Fiscal Agent for selection of Bonds for redemption, or (b) any Bonds selected for redemption. I*-- Bonds Mutilated, Lost, Destroyed or Stolen. If any Bond becomes mutilated, the District, at the expense of the Bondowner, will execute, and the Fiscal Agent will thereupon authenticate and deliver, a new Bond of like series, tenor and authorized denomination in exchange and substitution for the Bond so mutilated, but only upon surrender to the Fiscal Agent of the Bond so mutilated. Every mutilated Bond so surrendered to the Fiscal Agent will be canceled by it. If any Bond issued under the Fiscal Agent Agreement is lost, destroyed or stolen, evidence of such loss, destruction or theft may be submitted to the Fiscal Agent and the District and, if such evidence is satisfactory to them and indemnity satisfactory to them is given, the District, at the expense of the Bondowner, will execute, and the Fiscal Agent will thereupon authenticate and deliver, a new Bond of like series and tenor in lieu of and in substitution for the Bond so lost, destroyed or stolen. Any Bond issued under the provisions of the Fiscal Agent Agreement described in this paragraph in lieu of any Bond alleged to be lost, destroyed or stolen will be equally and proportionately entitled to the benefits of the Fiscal Agent Agreement with all other Bonds secured by the Fiscal Agent Agreement. 12 AGENDA ITEM N0. PAIGE L OF Authorization The Bonds are being issued pursuant to the Fiscal Agent Agreement. The Bonds are being sold to the Underwriter pursuant to, and subject to the terms and conditions of, the Purchase Contract by and between the Underwriter and the District (the "Purchase Contract "). The Fiscal Agent Agreement and the Purchase Contract were approved by the City, acting as the legislative body of the District, pursuant to a resolution adopted on January 10, 2006. Estimated Sources and Uses of Funds Under the provisions of the Fiscal Agent Agreement, the Fiscal Agent will receive the proceeds from the sale of the Bonds and will apply them as follows: Sources of Funds Principal Amount of the Bonds $9,020,000.00* Original Issue Discount Underwriter's Discount Total Uses of Funds Acquisition and Construction Fund Interest Account (1) Reserve Account (2) Costs of Issuance Account (3) City Administration and Reimbursements (4) Total (1) Estimated capitalized interest through September 1, 2006. (2) Equal to the Reserve Requirement. (3) Expenses include fees of Bond Counsel, Financing Consultant, Disclosure Counsel, Appraiser, Market Consultant, Special Tax Consultant, Fiscal Agent, costs of printing the Official Statement, and other costs of issuance of the Bonds. (4) City administration fees, fees and expenses of levying the Special Taxes in the first year and certain reimbursements including Developer Counsel and consultants. Investment of Funds All moneys in any of the funds or accounts established with the Fiscal Agent pursuant to the Fiscal Agent Agreement will be invested solely in Permitted Investments (see "APPENDIX A - DEFINITION OF CERTAIN TERMS" herein), as directed pursuant to the Written Request of the District filed with the Fiscal Agent at least two (2) Business Days in advance of the making of such investments. In the absence of any such Written Request, the Fiscal Agent will invest any such moneys in money market funds. Obligations purchased as an investment of moneys in any fund shall be deemed to be part of such fund or account. For the purpose of determining the amount in any fund, the value of Permitted Investments credited to such fund will be calculated at the market thereof (excluding any accrued interest). * Preliminary, subject to change 13 AGENDA ITRF MO. —I PAM OF ,� Redemption Optional Redemption. The Bonds are subject to redemption prior to maturity at the option of the District on any date on or after September 1, 2012, as a whole or in part, by lot, from any available source of funds at the following redemption prices, (expressed as a percentage of the principal amount of Bonds to be redeemed) together with accrued interest thereon to the date fixed for redemption: Redemption Periods Redemption Prices September 1, 2012 through August 31, 2013 102.0% September 1, 2013 through August 31, 2014 101.0% September 1, 2014 and thereafter 100.0% Special Mandatory Redemption from Prepayment of Special Taxes. The Bonds are subject to mandatory redemption prior to maturity on any date on or after March 1, 2006, in whole or in part, in a manner determined by the District from prepayments of Special Taxes at the following redemption prices (expressed as a percentage of the principal amount of Bonds to be redeemed), together with accrued interest thereon to the date fixed for redemption: Redemption Periods Redemption Prices March 1, 2006 through August 31, 2010 103.0% September 1, 2010 through August 31, 2012 102.5% September 1, 2012 and thereafter as provided for optional redemption Mandatory Sinking Payment Redemption. The Bonds maturing on September 1, 2026 and September 1, 2036 are subject to mandatory redemption, in part by lot, on September 1 in each year commencing September 1, 2021 in the case of the Bonds maturing on September 1, 2026 and September 1, 2027 in the case of the Bonds maturing on September 1, 2036, from mandatory sinking payments made by the District pursuant to the Fiscal Agent Agreement at a redemption price equal to the principal amount thereof to be redeemed, without premium, plus accrued interest thereon to the date of redemption as set forth in the following schedule; provided, however, that (i) in lieu of redemption thereof, the Bonds may be purchased by the District and tendered to the Fiscal Agent, and (ii) if some but not all of the Bonds have been redeemed pursuant to optional redemption, mandatory redemption from Special Taxes or special mandatory redemption provisions described herein, the total amount of all future sinking payments will be reduced by the aggregate principal amount of the Bonds so redeemed, to be allocated among such sinking payments on a pro rata basis (as nearly as practicable) in integral multiples of $5,000 as determined by the District. SCHEDULE OF MANDATORY SINKING PAYMENT REDEMPTIONS TERM BONDS MATURING SEPTEMBER 1, 2026 September 1 Principal September 1 Principal Year Amount* Year Amount* 2021 2024 2022 2025 2023 2026 * Preliminary, subject to change 14 AGENDA 17E/6q OF PAaGE,... -- SCHEDULE OF MANDATORY SINKING PAYMENT REDEMPTIONS TERM BONDS MATURING SEPTEMBER 1, 2036 ..,/ September 1 Principal September 1 Principal Year Amount* Year Amount* 2027 2032 2028 2033 2029 2034 2030 2035 2031 2036 Special Mandatory Redemption. The Bonds are subject to special mandatory redemption on any date from unused proceeds of the Bonds after completion or abandonment of the improvements to be financed with such proceeds, from the deposit of fees with the District by a public agency which has accepted facilities serving the District, and from insurance or condemnation proceeds or other mandatory redemption, without premium, plus accrued interest to the redemption date, all as determined by the District (see K THE DISTRICT — Facilities to be Financed by the District" for a description of the scope of the Development). Notice of Redemption. When redemption is authorized or required, the Fiscal Agent is required to give written notice of the redemption of Bonds to the Bondowners designated for redemption at their addresses appearing on the bond registration books, to certain Securities Depositories, and to one or more Information Services, all as provided in the Fiscal Agent Agreement, by first class mail, postage prepaid, no less than thirty (30), nor more than sixty (60), days prior to the date fixed for redemption. Neither failure to receive such notice nor any defect in the notice so mailed will affect the sufficiency of the proceedings for redemption of such Bonds or the cessation of accrual of interest on the redemption date. Effect of Redemption. The rights of a Bondowner to receive interest will terminate on the date, if any, on which the Bond is to be redeemed pursuant to a call for redemption. The Fiscal Agent Agreement contains no provisions requiring any publication of notice of redemption, and Bondowners must maintain a current address on file with the Fiscal Agent to receive any notices of redemption. Partial Redemption. In the event only a portion of any Bond is called for redemption, then upon surrender of such Bond the District will execute and the Fiscal Agent will authenticate and deliver to the Bondowner thereof, at the expense of the District, a new Bond or Bonds of the same series and maturity date, of authorized denominations in an aggregate principal amount equal to the unredeemed portion of the Bond to be redeemed. * Preliminary, subject to change 15 n �GEND� ;� Q' ��1�- � SOURCES OF PAYMENT FOR THE BONDS General The principal of, premium, if any, and the interest on the Bonds, and the Administrative Expenses, are payable from the Special Taxes collected on real property within the District and funds held by the Fiscal Agent and available for such purposes pursuant to the Fiscal Agent Agreement. The Bonds are limited obligations of the District payable solely from the proceeds of Special Taxes levied on certain parcels within the District. The Bonds shall not be deemed to constitute a debt or liability of the City or the or of any political subdivision thereof, other than the District. Neither the faith and credit nor the taxing power of the City, the State or any of its political subdivisions is pledged to the payment of the principal of or the interest on the Bonds. Special Taxes The Special Taxes are excepted from the tax limitation of California Constitution Article XIIIA pursuant to Section 4 thereof as a "special tax" authorized by at least a two - thirds vote of the qualified electors as set forth in the Act. Consequently, the City Council of the City on behalf of the District has the power and is obligated by the Fiscal Agent Agreement to cause the levy and collection of the Special Taxes. The District has covenanted in the Fiscal Agent Agreement to levy (subject to the Maximum Annual Special Tax) in each Fiscal Year the Special Taxes in an amount sufficient to pay the debt service on the Bonds and the cost of providing Administrative Expenses. The Special Taxes are to be levied and collected according to the Rate and Method of Apportionment described in the section entitled "FINANCIAL INFORMATION - Rate and Method of Apportionment" herein. Although the Special Taxes will constitute a lien on parcels of real property within the District, they do not constitute a personal indebtedness of the owner(s) of real property. There is no assurance that the property owner(s), or any successors and/or assigns thereto or subsequent purchaser(s) of land within the District, will be able to pay the annual Special Taxes or if able to pay the Special Taxes that they will do so (see "BONDOWNERS' RISKS" and "THE DISTRICT" herein). The Special Taxes initially are required to be collected by the County of Riverside Tax Collector in the same manner and at the same time as regular ad valorem property taxes are collected by the Tax Collector of the County. When received, such Special Taxes will be deposited in the Special Tax Fund to be held by the Fiscal Agent as provided in the Fiscal Agent Agreement. Reserve Account In order to secure further the timely payment of principal of and interest on the Bonds, the District is required, upon delivery of the Bonds, to deposit in the Reserve Account for the Bonds an amount equal to the Reserve Requirement. Thereafter, the District is required to deposit from the payment of the Bonds and maintain an amount of money equal to the Reserve Requirement in the Reserve Account at all times while the Bonds are Outstanding. Amounts in the Reserve Account will be used to pay debt service on the Bonds to the extent other moneys are not available therefor. Amounts in the Reserve Account in excess of the Reserve Requirement will be deposited into the Acquisition and Construction Fund until all Facilities have been financed or it is determined sufficient funds are on deposit in the Acquisition and Construction Fund to fund all Facilities expected to be funded and thereafter such excess funds shall be deposited into the Interest Account. Amounts in the Reserve Account may be used to pay the final year's debt service on the Bonds (see "SUMMARY OF THE FISCAL AGENT AGREEMENT" herein). Upon mandatory redemption, amounts on deposit in the Reserve Account shall be reduced (to an amount not 16 AGENDA ITEM No P Of AIGE less than the Reserve Requirement) and excess money shall be transferred to the Redemption Account and used for the redemption of Bonds. Capitalized Interest There will be an initial deposit to the Interest Account out of Bond proceeds which has been calculated to be sufficient to make interest payments on the Bonds due to and including September 1, 2006. Covenant for Superior Court Foreclosure Pursuant to Section 53356.1 of the Act, in the event of a delinquency in the payment of the Special Taxes levied, the District may order the institution of a superior court action to foreclose the lien therefor, provided such action is brought not later than four years after the final maturity date of the Bonds. In such an action, the real property subject to the unpaid amount may be sold at a judicial foreclosure sale. The District has covenanted in the Fiscal Agent Agreement for the benefit of the owners of the Bonds that the District will determine or cause to be determined, no later than March I and August I of each year, whether or not any owners of the property within the District of the District are delinquent in the payment of Special Taxes and, if such delinquencies exist, the District will order and cause to be commenced not later than April 15 (with respect to the March 1 determination date) or September 1 (with respect to the August 1 determination date), and thereafter diligently prosecute, an action in the superior court to foreclose the lien of any Special Taxes or installment thereof not paid when due, provided, however, that the District shall not be required to order the commencement of foreclosure proceedings if (i) the total Special Tax delinquency in the District of the District for such Fiscal Year is less than five percent (5 %) of the total Special Tax levied in such Fiscal Year, and (ii) the District shall have established from any source of lawfully available funds (other than Special Taxes) an escrow fund to provide for the payment of principal of and interest on the Bonds. Notwithstanding the foregoing, if the District determines that any single property owner is delinquent in excess of ten thousand dollars ($10,000) in the payment of the Special Tax, then it will diligently institute, prosecute and pursue foreclosure proceedings against such property owner. Notwithstanding any provision of the Act or other law of the State to the contrary, in connection with any foreclosure related to delinquent Special Taxes: (a) The District or the Fiscal Agent is authorized to credit bid at any foreclosure sale, without any requirement that funds be set aside in the amount so credit bid, in the amount specified in Section 53356.5 of the Act, or such less amount as determined under clause (b) below or otherwise under Section 53356.6 of the Act. (b) The District may permit, in its sole and absolute discretion, property with delinquent Special Tax payments to be sold for less than the amount specified in Section 53356.5 of the Act, if it determines that such sale is in the interest of the Bond Owners. The Bond Owners, by their acceptance of the Bonds, consent to such sale for such lesser amounts (as such consent is described in Section 53356.6 of the Act), and release the District and the City, and their respective officers and agents from any liability in connection therewith. If such sale for lesser amounts would result in less than full payment of principal of and interest on the Bonds, the CFD will use best efforts to seek approval of the Bond Owners. (c) The District is authorized to use amounts in the Special Tax Fund to pay costs of foreclosure of delinquent Special Taxes. (d) The District may forgive all or any portion of the Special Taxes levied or to be levied on any parcel in the District so long as the District determines that such forgiveness is not expected to adversely affect its obligation to pay principal of and interest on the Bonds as such payments become due and payable. No assurances can be given that the real property subject to foreclosure and sale at a judicial foreclosure sale will be sold or, if sold, that the proceeds of such sale will be sufficient to pay any delinquent Special Tax installment. Although the Act authorizes the District to cause such an action to be commenced and diligently pursued to completion, the Act does not require the District or the City to purchase or otherwise 17 A(;ENDA ITEM NO PA:/ 6P 2 10^ acquire any lot or parcel of property sold at the execution sale pursuant to the judgment in any such action if there is no other purchaser at such sale, nor does the Act specify the priority relationship, if any, between the Special Taxes and other taxes and assessment liens. As a result of the foregoing, in the event of a delinquency or nonpayment by the property owners in the District of one or more Special Taxes installments, there can be no assurance that there would be available to the District sufficient funds to pay when due the principal of, interest on and premium, if any, on the Bonds (see "BONDOWNERS' RISKS - Concentration of Ownership" "BONDOWNERS' RISKS - Bankruptcy and Foreclosure Delays" and "BONDOWNERS' RISKS - Property Controlled by Federal Deposit Insurance Corporation and other Federal Agencies" herein). Prepayment of Special Tax. A property owner may prepay its Special Taxes and thereby cause a redemption of Bonds. See "APPENDIX E — RATE AND METHOD OF APPORTIONMENT - PREPAYMENT OF ANNUAL SPECIAL TAXES" herein. Special Taxes Are Not Within Teeter Plan The County has adopted a Teeter Plan as provided for in Section 4701 et seq. of the California Revenue and Taxation Code, under which a tax distribution procedure is implemented and secured roll taxes are distributed to taxing agencies within the County on the basis of the tax levy, rather than on the basis of actual tax collections. However, by policy, the County does not include assessments, reassessments and special taxes in its Teeter program. The Special Taxes are not included in the County's Teeter Program. 18 AGENDA ITEM NQ.__r�___r Pam 1 4eL or Z_... BONDOWNERS' RISKS General BEFORE PURCHASING ANY OF THE BONDS, ALL PROSPECTIVE INVESTORS AND THEIR PROFESSIONAL ADVISORS SHOULD CAREFULLY CONSIDER, AMONG OTHER THINGS, THE FOLLOWING RISK FACTORS, WHICH ARE NOT MEANT TO BE AN EXHAUSTIVE LISTING OF ALL RISKS ASSOCIATED WITH THE PURCHASE OF THE BONDS. MOREOVER, THE ORDER OF PRESENTATION OF THE RISK FACTORS DOES NOT NECESSARILY REFLECT THE ORDER OF THEIR IMPORTANCE. The purchase of the Bonds involves investment risk. If a risk factor materializes to a sufficient degree, it could delay or prevent payment of principal of and/or interest on the Bonds. Such risk factors include, but are not limited to, the following matters. Limited Obligation Neither the faith and credit nor the taxing power of the City, the State or any political subdivision thereof other than the District is pledged to the payment of the Bonds. Except for the Special Taxes derived from the District, no other taxes are pledged to the payment of the Bonds. The Bonds are not general or special obligations of the City, the State or any political subdivision thereof or general obligations of the District, but are special obligations of the District, payable solely from Special Taxes and the other assets pledged therefor under the Fiscal Agent Agreement. Insufficiency of Special Taxes As discussed herein, the amount of Special Taxes that are collected with respect to the District could be insufficient to pay principal of, interest and premium, if any, on the Bonds due to nonpayment of the Special Taxes levied and insufficient or no proceeds received from a foreclosure sale of land within the District. The District has covenanted in the Fiscal Agent Agreement to institute foreclosure proceedings upon delinquencies in the payments of the Special Taxes as described herein and to sell any real property with a lien of delinquent Special Taxes to obtain funds to pay debt service on the Bonds. If foreclosure proceedings are ever instituted, any holder of a mortgage or deed of trust could, but would not be required to, advance the amount of delinquent Special Taxes to protect its security interest. See "SOURCES OF PAYMENT FOR THE BONDS - Covenant for Superior Court Foreclosure,, herein for provisions which apply in the event foreclosure is required and which the District is required to follow in the event of delinquency in the payment of Special Taxes. Section 53317.3 of the Act provides that, if any real property within the District not otherwise exempt from the Special Tax is acquired by a public entity through a negotiated transaction, or by gift or devise, the Special Tax will continue to be levied on and be enforceable against the public entity that acquires the property. Additionally, Section 53317.5 provides that, if any property subject to the Special Tax is acquired by a public entity through eminent domain proceedings, the obligation to pay the Special Tax with respect to that property is to be treated as if it were a special assessment and be paid from the eminent domain award. However, the constitutionality and operation of these provisions of the Act have not been tested. If for any reason, property subject to the Special Tax becomes exempt from taxation by reason of ownership by a non - taxable entity, such as the federal government or another public agency, and the District is unable to collect the Special Taxes or obtain compensation through the condemnation procedure, the Special Tax will be reallocated to the remaining taxable properties within the District up to the Maximum Annual Special Tax. This reallocation would result in the owners of taxable properties within the District subject to the Special Tax paying a greater amount of the Special Tax and could have 19 AGENDA ITEM NO. p/VGEi7F 2=- an adverse impact upon the timely payment of the Special Tax by such owners and therefore the ability to pay debt service on the Bonds. Concentration of Ownership Property within the District is owned by the Developer and approximately 6 individual homeowners (see "THE DISTRICT" herein). The only assets of the Developer and the individual homeowners which constitute security for the Bonds are their taxable property within the District. There are expected to be subsequent transfers of ownership of the property within the District to individual owners of single family homes during the development of the land within the District. The fact that the Developer owns most of the land within the District presents substantial risk to the Bondowners. No Personal Liability for Special Taxes No property owner (including the Developer), or any merchant builder or any officer, partner, member, or affiliate thereof will be personally liable for the payment of the Special Taxes to be applied to pay the principal of and interest on the Bonds. In addition, there is no assurance that any property owner or any merchant builder will be able to pay the Special Taxes or that any property owner or any merchant builder will pay such Special Taxes even if it is financially able to do so. No representation is made that a property owner will have moneys available (or that it will advance such moneys, if available) to complete the development of the land within the District in the manner described herein. Accordingly, the Developer's financial statements are not included in this Official Statement. No property owner is obligated in any manner to continue to own any of the land it presently owns within the District. Foreclosure and Sale Proceedings Payment of the Special Taxes is secured by the parcels assessed. In the event an annual installment of the Special Taxes included in the County tax bill of an assessed parcel is not paid when due, the District can institute foreclosure proceedings in court to cause the parcel to be sold in order to recover the delinquent amount from the sale of proceeds (see "SOURCES OF REPAYMENT FOR THE BONDS" herein). Foreclosure and sale may not always result in the recovery of any or the full amount of delinquent Special Taxes. Sufficiency of the foreclosure sales proceeds to cover the delinquent amount depends in part upon the market for and the value of the parcel at the time of the foreclosure sale (see "Land Values" below). The current appraised value is some evidence of such future value. However, future events may result in significant changes from the current appraised value. Such events could include changes in land ownership, development plans and other factors affecting the progress of land development, legal requirements affecting the development of parcels, a downturn in the economy, as well as a number of additional factors. Any of these factors may result in a significant erosion in value, with consequent reduced security of the Bonds. Sufficiency of foreclosure sale proceeds to cover a delinquency may also depend upon the value of prior or parity liens and similar claims. A variety of governmental liens may presently exist or may arise in the future with respect to a parcel which, unless subordinate to the lien securing the Special Taxes, may effectively reduce the value of such parcel. Further, other governmental claims, _ such as hazardous substance claims, may affect the realizable value even though such claims may not rise to the status of liens. Timely foreclosure and sale proceedings with respect to a parcel may be forestalled or delayed by a stay in the event the owner of the parcel becomes the subject of bankruptcy proceedings. Further, should the stay not be lifted, payment of Special Taxes may be subordinated to bankruptcy law priorities. 20 AGENDA ITEM NO.,____�._ PAGEE %ol: Z: Land Values If a property owner defaults in the payment of the Special Tax, the District's only remedy is to commence foreclosure proceedings against the defaulting property owner's real property within the District for which the Special Tax has not been paid, in an attempt to obtain funds to pay the delinquent Special Tax. Therefore, the value of the land and improvements within the Improvement Area is a critical factor in determining the investment quality of the applicable corresponding series of Bonds and, therefore, the Bonds. Reductions in property values within the District due to a downturn in the economy or the real estate market, events such as earthquakes, droughts, or floods, stricter land use regulations, or other events may adversely impact the security underlying the Special Tax. The District had the following two studies prepared in order to estimate the current aggregate market value of land in the Improvement Areas. . Market Absorption Study, Community Facilities District No. 2005 -1 (Serenity) City of Lake Elsinore, Riverside County, California prepared by Empire Economics, Inc., Capistrano Beach, California, December 12, 2005. 2. Appraisal Report, City of Lake Elsinore Community Facilities District No. 2005 -1 (Serenity) prepared by Harris Realty Appraisal, Newport Beach, California (the "Appraisal "), dated December 15, 2005 Collectively, the studies are referred to herein as the "Appraisal Documents ". The purpose of the Appraisal was to estimate the bulk value of the land and improvements within the District in its "as is" condition (which assumes sale of the Bonds and construction of publicly - financed improvements). On the basis of the assumptions and limitations described in the Appraisal and in the Market Absorption ..r►r Study, the Appraiser has estimated the aggregate discounted "bulk sale" value of all the parcels in the District as of December 15, 2005 to be $29,400,000, which is approximately 3.26* times the principal amount of the Bonds Prospective purchasers of the Bonds should not assume that the land and improvements could be sold for the appraised amount at a foreclosure sale for delinquent Special Taxes. In particular, the values of individual properties in the District will vary in some cases significantly. The actual value of the land is subject to future events which might render invalid some or all of the basic assumptions of the Appraiser. The future value of the land can be expected to fluctuate due to many different, not fully predictable, real estate related investment risk factors, including, but not limited to: general tax law changes related to real estate, changes in competition, general area employment base changes, population changes, changes in real estate related interest rates affecting general purchasing power, advertising, changes in allowed zoning uses and density, natural disasters such as floods, earthquakes and landslides, and similar factors. Appraisals in general are the result of an inexact process, and estimated market value is dependent, in part, upon assumptions which may or may not be realized and upon market conditions and perceptions of market value, which are likely to change over time. The appraisal valuations represent opinions only and are not intended to be absolutes or assurances of specific resale values. * Preliminary, subject to change 21 AGENDA ITEM N0. Ao�- If more than one appraiser were employed, it is reasonable to assume that a reasonable range of value opinions on the land and improvement value within the District would be reflected depending upon personal professional interpretation of data, facts and circumstances reviewed and assumptions employed. Prospective purchasers should not assume that the land could be sold for the appraised amount at a foreclosure sale for delinquent Special Taxes. A copy of the Appraisal Documents are included in the Appendices. The summary herein of some of the conclusions in the Appraisal Documents does not purport to be complete. Reference is made to the Appraisal Documents for further information. The District makes no representations as to the value of the real property within the District, and prospective purchasers of the Bonds are referred to the Appraisal Documents referred to above in evaluating the value of real property within the District. Value to Lien Ratio Valuation to lien ratios are derived by dividing the appraised value of the property in the District by the principal amount of the Bonds.. For example, a 3:1 ratio means that the value is three times the total Bond amount. According to the Appraisal the value of the land within the District is $29,400,000. Therefore, the value to lien ratio is 3.26* to 1. The value -to -lien ratio of individual parcels may be less or more than the aggregate value -to -lien ratio for an District. In particular the value of developed property is substantially more than undeveloped property (see "Concentration of Property Ownership" above). Investors must recognize the uncertainties with respect to the fair market values of the parcels, since the Bonds are secured by the Special Taxes levied on the parcels. See °BONDOWNERS' RISKS" herein. Potential purchasers of the Bonds should be aware that if a parcel bears a Special Tax liability in excess of its market value, then there may be little incentive for the owner of the parcel to pay the Special Taxes on such parcel and little likelihood that such property would be purchased in a foreclosure sale. See "BONDOWNERS' RISKS" describing risks relating to market values of parcels in the District. The Progress of Land Development; Risks of Real Estate Secured Investments Land development is an activity subject to substantial risk. Risk factors include, without limitation, general or local economic conditions; local real estate market conditions; supply of or demand for competitive properties; changes in, the real estate tax rate; governmental regulation and approval requirements, particularly environmental quality, endangered species, land use, zoning and building requirements; development, financing and marketing capabilities of the various landowners; natural disasters, including without limitation earthquakes, flood and fire which may result in uninsured losses; and accomplishment of development plans on a timely basis, including but not limited to the provision of infrastructure improvements in addition to the Facilities. Since these are largely business risks of the type that landowners customarily evaluate individually, and inasmuch as changes in land ownership may well mean changes in the evaluation with respect to any particular parcel, the District has undertaken the financing without regard to any such evaluation. Thus, the undertaking of the financing by the. District in no way implies that the District has evaluated these risks or the reasonableness of these risks. * Preliminary, subject to change 22 AGENDA ITEM ND. pgtGE - Further, the risk to the owners of the Bonds of development delays may be heightened when land ownership is concentrated in only a few landowners or developers. If ownership is concentrated, timely payment of the Special Taxes may be dependent upon the financing available to such owners or developers. Further, the continued progress of land development may be one of the present facts and circumstances forming the basis for the appraiser's opinion of value. Diminished values may lessen the effectiveness of foreclosure proceedings as a remedy. The Special Taxes are to be collected from the owners of property located within the District, and levy of the Special Taxes is not dependent on the completion of the development of the properties within the District (see "FINANCIAL INFORMATION - Rate and Method of Apportionment" herein). Nevertheless, the extent of completion of the development of the property within the District may affect the ability and willingness of property owners to pay the Special Taxes and may affect the market value of any property foreclosed upon for nonpayment of installments of the Special Taxes. Geologic, Topographic and Climatic Conditions Land and improvement value can be adversely affected by a variety of additional factors, particularly those which may affect infrastructure and private improvements of the parcels assessed and the continued habitability and enjoyment of such private improvements. Such additional factors include, without limitation, geologic conditions such as earthquakes and overdraft of groundwater basins; topographic conditions such as earth movements and floods; and climatic conditions such as droughts. Further, building codes require that some of these factors be taken into account, to a limited extent, in the design of private improvements of the parcels in the District. Design criteria in any of these circumstances are established upon the basis of a variety of considerations and may change, leaving previously designed improvements unaffected by more stringent subsequently established criteria. In rr general, design criteria reflect a balance at the time of establishment between the present costs of protection and the future costs of lack of protections, based in part upon a present perception of the probability that the condition will occur and the seriousness of the condition should the condition occur. Endangered and Threatened Species During the past several years, there has been an increase in activity at the State and federal level related to the listing and possible listing of certain plant and animal species found in the State as endangered species and in programs designed to set aside additional geographical areas for habitat conservation. Although none of the areas within the District has been included in the Western Riverside County Multi Species Habitat Conservation Plan ( MSHCP) study area, there is no assurance that such areas will not be included in future study areas. An increase in the number of endangered species and /or the designation of additional habitat areas to be subjected to conservation planning similar to areas subject to the Western Riverside County MSHCP is expected to curtail development in a number of areas in the State. The area proposed to be developed within the District is not known to contain any plant or animal species which either the California Fish and Game Commission or the United States Fish and Wildlife Service has listed as endangered or to the knowledge of the District proposed for addition to the endangered species list. Further approval may be required for any planned clearing of land or construction across or impacting waterways, creeks or other drainages. If required, there is no assurance . that such approvals will be obtained and that development will be permitted to proceed as projected. On a regular basis, new species are proposed to be added to the State and federal protected species lists. Regardless of the stage of entitlements and actual development of a particular development, any action by the State or federal governments to protect species located on or adjacent to the property within the District could negatively affect the Developer's ability to complete the development of the properties ."Of 23 AGENDA ITEM NO. PAGE OF Z 2 r within the District as planned. This, in turn, could reduce the ability or the willingness of the property owners to pay the Special Taxes when due and would likely reduce the value of the land and the potential revenues available at a foreclosure sale for delinquent Special Taxes. Earthquakes Southern California is among the most seismically active regions in the United States. The occurrence of seismic activity in the District could result in substantial damage to properties in the District which, in turn, could substantially reduce the value of such properties and could affect the ability or willingness of the property owners to pay their Special Taxes. Any major damage to structures as a result of seismic activity could result in a greater reliance on Undeveloped Property in the payment of Special Taxes. in the event of a severe earthquake, there may be significant damage to both property and infrastructure in the District. As a result, a substantial portion of the property owners may be unable or unwilling to pay the Special Taxes when due. In addition, the value of land in the District could be diminished in the aftermath of such an earthquake, reducing the resulting proceeds of foreclosure sales in the event of delinquencies in the payment of Special Taxes. Certain procedures and design standards are required to be followed during the construction of buildings within the District to ensure that each building is designed and constructed to meet, at a minimum, the highest seismic standards required by law. Legal Requirements Other events which may affect the value of a parcel include changes in the law or application of law. Such changes may include, without limitation, local growth control initiatives; local utility connection moratoriums; and local application of statewide tax and governmental spending limitation measures. Other Possible Claims Upon the Values of an Assessed Parcel In addition to existing property taxes, other governmental obligations, such as general obligation bonds, assessments or special taxes may be authorized in the future, the tax, assessment or charge for which may become an obligation of one or more of the parcels within the District and may be secured by a lien on a parity with the lien of the Special Taxes securing the Bonds. In general, as long as the Special Taxes securing the Bonds are collected on the County tax roll, the Special Taxes and all other taxes, assessments and charges also collected on the tax roll are on a parity with each other. Questions of priority become significant when collection of one or more of the taxes, assessments or charges is sought by some other procedure, such as foreclosure and sale. Otherwise, in the event of such foreclosure proceedings, the Special Taxes will generally be on a parity with the other taxes, assessments and charges. The Special Taxes will have priority over non - governmental liens on a parcel, regardless of whether or not the non - governmental liens are in existence at the time of creation of any lien securing the Special Taxes. While governmental taxes, assessments and charges are a common claim against the value of a parcel, other less common claims may be relevant. One of the most serious in terms of the potential reduction in the value of a parcel is a claim with regard to a hazardous substance. In general, the owners and operators 'of a parcel may be required by law to remedy conditions of the parcel relating to releases or threatened releases of hazardous substances. Under many of these laws, the owner (or operator) is obligated to remedy a hazardous substance condition whether or not the owner (or operator) has anything to do with creating or handling the hazardous substance. The effect, therefore, should any of the parcels in the District be affected by a hazardous substance, is to reduce the marketability and value of the parcel by the costs of remedying the condition, because the purchaser, upon becoming the owner, will become obligated to remedy the condition just as is the seller. 24 AGENDA ITEM N0. P� 1 22 The values expressed herein, do not take into account the possible reduction in marketability and value of any of the parcels by reason of the possible liability of the owner (or operator) for the remedy of a hazardous substance condition of the parcel. The District is not aware that the owner (or operator) of any of the parcels has such a current liability with respect to any of the parcels in the District. However, it is possible that such liabilities do currently exist. Further, it is possible that liabilities may arise in the future with respect to one or more of the parcels resulting from the existence, currently, on the parcel of a substance presently classified as hazardous or may arise in the future resulting from the existence, currently, on the parcel of a substance presently not classified as hazardous but which may in the future be so classified. Further, such liabilities may arise not simply from the existence of a hazardous substance but from the method of handling it. All of these possibilities could significantly reduce the value of a parcel. Bankruptcy Proceedings Regardless of the priority of the Special Taxes securing the Bonds over non - governmental liens on parcels, the exercise by the District of the foreclosure and sale remedy may be forestalled or delayed by bankruptcy, reorganization, insolvency, or other similar proceedings of the owner of a parcel. The federal bankruptcy laws provide for an automatic stay of foreclosure and sale proceedings, thereby delaying such proceedings perhaps for an extended period. Delay in exercise of remedies, especially if the owners own parcels the Special Taxes of which are significant or if bankruptcy proceedings are instituted with respect to a number of owners owning parcels the Special Taxes of which is significant, may result in periodic Special Tax collections which may be insufficient to pay the debt service on the Bonds. Further, should remedies be exercised under the bankruptcy law against the parcels, payment of Special Taxes may be subordinated to other claims in the bankruptcy proceedings. Thus, certain claims may have priority over a claim for unpaid Special Taxes, even though, in the absence of the bankruptcy proceedings, no such priority would exist. Bankruptcy and Foreclosure Delays The payment of the Special Taxes and the ability of the District to foreclose the lien of a delinquent unpaid Special Tax, as discussed in the section herein entitled "SOURCES OF PAYMENT FOR THE BONDS" may be limited by bankruptcy, insolvency, or other laws generally affecting creditors' rights or by the laws of the State of California relating to judicial foreclosure. The various legal opinions to be delivered concurrently with the delivery of the Bonds (including Bond Counsel's approving legal opinion) will be qualified as to the enforceability of the various legal instruments, by bankruptcy, reorganization, insolvency or other similar taws affecting the rights of creditors generally. Although bankruptcy proceedings would not cause the Special Taxes to become extinguished, bankruptcy of a property owner or of a partner or other owner of a property owner within the District could result in a delay in prosecuting superior court foreclosure proceedings and could result in loss of priority of the lien securing any Special Taxes with respect to Special Taxes levied while bankruptcy proceedings are pending. In addition, the amount of any lien on property securing the payment of delinquent Special Taxes could be reduced if the value of the property were determined by the bankruptcy court to have become less than the amount of the lien, and the amount of the delinquent Special Taxes in excess of the reduced lien could be treated as an unsecured claim by the court. Such delay or loss of priority or nonpayment, would increase the likelihood of a delay or default in payment of the principal of and interest on the Bonds and the possibility of delinquent Special Tax installments not being paid in full. To the extent a significant percentage of the property in the District continues to be owned by a limited number of property owners, the payment of the Special Taxes and the ability of the District to foreclose 25 EW' -.no, AGENDA ITEM NO. _l1 PAGE i- F 2 `�" the lien of a delinquent unpaid Special Taxes installment could be delayed by bankruptcy, insolvency, or other laws generally affecting creditors' rights or by the laws of the State relating to judicial foreclosure. On July 30, 1992, the United States Court of Appeals for the Ninth Circuit issued its opinion in a bankruptcy case entitled In re Glasply Marine Industries. In that case, the court held that ad valorem property taxes levied by Snohomish County in the State of Washington after the date that the property owner filed a petition for bankruptcy were not entitled to priority over a secured creditor with a prior lien on the property. The court upheld the priority of unpaid taxes imposed after the filing of the bankruptcy petition as "administrative expenses" of the bankruptcy estate, payable after all secured creditors. As a result, the secured creditor was to foreclose on the property and retain all of the proceeds of the sale except the amount of the pre - petition taxes. According to the court's ruling, as administrative expenses, post - petition taxes would have to be paid, assuming that the debtor has sufficient assets to do so. In certain circumstances, payment of such administrative expenses may be allowed to be deferred. Once the property is transferred out of the bankruptcy estate (through foreclosure or otherwise) it would at that time become subject to current ad valorem taxes. The Act provides that the Special Taxes are secured by a continuing lien, which is subject to the same lien priority in the case of delinquency as ad valorem taxes. No case law exists with respect to how a bankruptcy court would treat the lien for the Special Taxes levied after the filing of a petition in bankruptcy. Glasply is controlling precedent for bankruptcy courts in the State. If the Glasply precedent was applied to the levy of the Special Tax, the amount of Special Tax received from parcels whose owners declared bankruptcy could be reduced. It should also be noted that on October 22, 1994, Congress enacted I I U.S. C. Section 362(b)(18), which added a new exception to the automatic stay for ad valorem property taxes imposed by a political subdivision after the filing of a bankruptcy petition. Pursuant to this new provision of law, in the event of a bankruptcy petition filed on or after October 22, 1994, the lien for ad valorem taxes 'in subsequent fiscal years will attach even if the property is part of the bankruptcy estate. Bondowners should be aware that the potential effect of 11 U.S. C. Section 362(b)(I8) on the Special Taxes depends upon whether a court were to determine that the Special Taxes should be treated like ad valorem taxes for this purpose. Additional Taxation On June 3, 1986, California voters approved an amendment to Article XIIIA of the California Constitution to allow local governments and school districts to raise their property tax rates above the constitutionally mandated 1% ceiling for the purpose of repaying certain new general obligation debt issued for the acquisition or improvement of real property and approved by at least two - thirds of the votes cast by the qualified electorate. If any such voter - approved debt is issued, it may be on a parity with the lien of the Special Taxes on the parcels within the District. Parity Taxes and Special Assessments The Special Taxes and any penalties thereon will constitute a lien against the lots and parcels of land within the District on which they will be annually imposed until they are paid in full. Such lien is on a parity with all special taxes and special assessments levied by other public entities, agencies and districts and is co -equal to and independent of the lien for general property taxes regardless of when they are imposed upon the same real property. The Special Taxes have priority over all existing and future private liens imposed on the real property within the District, however, has no control over the ability of other public entities, agencies and districts to issue indebtedness secured by special taxes or assessments payable from all or a portion of the real property within the District. Any such special taxes or 26 0 AGENDA ITEM N0. Pgpu:!LlOF �Z assessments may have a lien on such real property on a parity with the Special Taxes (see "DEBT STRUCTURE - Direct and Overlapping Debt" herein). Accordingly, the liens on the real property within the District could greatly increase, without any corresponding increase in the value of the property within the District and thereby severely reduce the lien to value ratio of the land secured public debt existing at the time the Bonds are issued. The imposition of such additional indebtedness could also reduce the willingness and ability of the property owners within the District to pay the Special Taxes when due. Disclosure to Future Land Buyers A "Notice of Special Tax Lien" for the District was recorded pursuant to Section 53328.3 of the Act and Section 3114.5 of the Streets and Highways Code, with the County Recorder for the County (the "County Recorder "). The Notice sets forth, among other things, the Rate and Method of Apportionment, the Assessor's Parcel Numbers within the District as of the date of recording the Notice, and the boundaries of the District by reference to the map(s) recorded with the County Recorder. While title insurance and search companies normally refer to such notices in title reports, and sellers of property within the District are required to give prospective buyers a notice of special tax in accordance with Sections 53360.2 or 53341.5 of the Act, there can be no assurances that such reference will be made or notice given, or if made or given, that prospective purchasers or lenders will consider such Special Tax obligation in the purchase of land within the District or the lending of money thereon. Failure to disclose the existence of the Special Tax may affect the willingness and ability of future landowners within the District to pay the Special Tax when due. Billing of Special Taxes A special tax can result in a substantially heavier property tax burden being imposed upon properties within a community facilities district than elsewhere in a city or county, and this in turn can lead to problems in the collection of the special tax. In some community facilities districts the taxpayers have refused to pay the special tax and have commenced litigation challenging the special tax, the community facilities district and the bonds issued by the District. Under provisions of the Act, the Special Taxes are billed to the properties within the District which were entered on the Assessment Roll of the County Assessor by January 1 of the previous fiscal year on the regular property tax bills sent to owners of such properties. Such Special Tax installments are due and payable, and bear the same penalties and interest for non - payment, as do regular property tax installments. These Special Tax installment payments cannot be made separately from property tax payments. Therefore, the unwillingness or inability of a property owner to pay regular property tax bills as evidenced by property tax delinquencies may also indicate an unwillingness or inability to make regular property tax payments and installment payments of Special Taxes in the future. See "SOURCES OF PAYMENT FOR THE BONDS - Covenant for Superior Court Foreclosure" for a discussion of the provisions which apply, and procedures which the District is obligated to follow, in the event of delinquency in the payment of installments of Special Taxes. Collection of Special Tax In order to pay debt service on the Bonds, it is necessary that the Special Tax levied against land within the District be paid in a timely manner. the District has covenanted in the Fiscal Agent Agreement under certain conditions to institute foreclosure proceedings against property with delinquent Special Tax in order to obtain funds to pay debt service on the Bonds. If foreclosure proceedings were instituted, any mortgage or deed of trust holder could, but would not be required to, advance the amount of the delinquent Special Tax to protect its security interest. In the event such superior court foreclosure is necessary, there could be a delay in principal and interest payments on the Bonds pending prosecution of 27 AGENDA ITEM N0. �___ -- P I OF the foreclosure proceedings and receipt of the proceeds of the foreclosure sale, if any. No assurances can be given that the real property subject to foreclosure and sale at a judicial foreclosure sale will be sold or, if sold, that the proceeds of such sale will be sufficient to pay any delinquent Special Tax installment. Although the Act authorizes the District to cause such an action to be commenced and diligently pursued to completion, the Act does not specify the obligations of the District with regard to purchasing or otherwise acquiring any lot or parcel of property sold at the foreclosure sale if there is no other purchaser at such Sale. See "SOURCES OF PAYMENT FOR THE BONDS -Covenant for Superior Court Foreclosure ". Maximum Rates Within the limits of the Rate and Method of Apportionment, the District may adjust the Special Tax levied on all property within the District to provide an amount required to pay debt service on the Bonds and other obligations of the District, and the amount, if any, necessary to pay all annual Administrative Expenses and make rebate payments to the United States government. However, the amount of the Special Tax that may be levied against particular categories of property within the District is subject to the maximum rates provided in the Rate and Method of Apportionment. There is no assurance that the maximum rates will at all times be sufficient to pay the amounts required to be paid by the Fiscal Agent Agreement. See "FINANCIAL INFORMATION - Rate and Method of Apportionment ". Exempt Properties Certain properties are exempt from the Special Tax in accordance with the Rate and Method of Apportionment and provisions of the Act. The Act provides that properties or entities of the State, federal or local government at the time of formation of the District are exempt from the Special Tax; provided, however, that property within the District acquired by a public entity through negotiated transactions, or by gift or devise, which is not otherwise exempt from the Special Tax will continue to be subject to the /^ Special Tax. In addition, the Act provides that if property subject to the Special Tax is acquired by a public entity through eminent domain proceedings, the obligation to pay the Special Tax with respect to that property is to be treated as if it were a special assessment and be paid from the eminent domain award. The constitutionality and operation of these provisions of the Act have not been tested. If for any reason property subject to the Special Tax becomes exempt from taxation by reason of ownership by a non - taxable entity such as the federal government, or another public agency, subject to the limitation of the maximum authorized rate of levy, the Special Tax may be reallocated to the remaining taxable properties within the District. This would result in the owners of such property paying a greater amount of the Special Tax and could have an adverse impact upon the timely payment of the Special Tax; however, the amount of Special Tax to be levied and collected from the property owner is subject to the Maximum Special Tax as set forth in the Rate and Method of Apportionment and to the limitation in the Act that under no circumstances may the Special Taxes levied on any residential parcel be increased by more than ten percent as a consequence of delinquency by the owner of any parcel. If a substantial portion of land within the District became exempt from the Special Tax because of public ownership, or otherwise, the maximum Special Tax which could be levied upon the remaining acreage might not be sufficient to pay principal of and interest on the Bonds when due and a default will occur with respect to the payment of such principal and interest. The Act further provides that no other properties or entities are exempt from the Special Tax unless the properties or entities are expressly exempted in a resolution of consideration to levy a new special tax or to alter the rate or method of apportionment of an existing special tax. The Act would prohibit the City Council, acting as the legislative body of the District, from adopting a resolution to reduce the rate of the Special Tax or terminate the levy of the Special Tax unless the City Council, acting as.the legislative body of the District determined that the reduction of termination of the Special Tax "would not interfere with the timely retirement" of the Bonds. See "BONDOWNERS' RISKS - Right to Vote on Taxes Act" below. 28 AGENDA ITEM NO. PgE,E OF Z Insufficient Special Taxes Under the Rate and Method of Apportionment, the annual amount of Special Tax to be levied on each taxable parcel in the District will be based primarily on whether such parcel is developed or not and, for Developed Property, on the type of structure and square footage of buildings constructed. See "APPENDIX D ". Accordingly, to the extent Undeveloped Property does not become Developed Property, the collection of the Special Taxes will be dependent on the willingness and ability of the owners of Undeveloped Property to pay such Special Taxes when due. Such event may result in an unwillingness of such owners of the Undeveloped Property to pay additional Special Taxes. No Acceleration Provision The Fiscal Agent Agreement does not contain a provision allowing for the acceleration of the principal of the Bonds in the event of a payment default or other default under the terms of the Bonds or the Fiscal Agent Agreement. Property Controlled by Federal Deposit Insurance Corporation and other Federal Agencies The District's ability to collect interest and penalties specified by State law and to foreclose the lien of a delinquent Special Tax payment may be limited in certain respects with regard to properties in which the Internal Revenue Service, the Drug Enforcement Agency, the Federal Deposit Insurance Corporation (the "FDIC ") or other similar federal agencies has or obtains an interest. Specifically, with respect to the FDIC, on June 4, 1991, the FDIC issued a Statement of Policy Regarding the Payment of State and Local Real Property Taxes. The 1991 Policy Statement was revised and superseded by a new Policy Statement effective January 9, 1997 (the "Policy Statement "). The Policy Statement provides that real property owned by the FDIC is subject to state and local real property taxes only if those taxes are assessed according to the property's value, and that the FDIC is immune from real property taxes assessed on any basis other than property value. According to the Policy Statement, the FDIC will pay its proper tax obligations when they become due and payable and will pay claims for delinquent property taxes as promptly as is consistent with sound business practice and the orderly administration of the institution's affairs, unless abandonment of the FDIC's interest in the property is appropriate. The FDIC will pay claims for interest on delinquent property taxes owed at the rate provided under state law, to the extent the interest payment obligation is secured by a valid lien. The FDIC will not pay any amounts in the nature of fines or penalties and will not pay nor recognize liens for such amounts. If any property taxes (including interest) on FDIC owned property are secured by a valid lien (in effect before the property became owned by the FDIC), the FDIC will pay those claims. The Policy Statement further provides that no property of the FDIC is subject to levy, attachment, garnishment, foreclosure or sale without the FDIC's consent. In addition, the FDIC will not permit a lien or security interest held by the FDIC to be eliminated by foreclosure without the FDIC's consent. The Policy Statement states that FDIC generally will not pay non ad valorem taxes, including special assessments, on property in which it has a fee interest unless the amount of tax is fixed at the time that the FDIC acquires its fee interest in the property, nor will it recognize the validity of any lien to the extent it purports to secure the payment of any such amounts. Special taxes imposed under the Mello - Roos Act and a special tax formula which determines the special tax due each year, are specifically identified in the Policy Statement as being imposed each year and therefore covered by the FDIC's federal immunity. With respect to property in California owned by the FDIC on January 9, 1997, and that was owned by the Resolution Trust Corporation (the "RTC ") on December 31, 1995, or that became property of the FDIC through foreclosure of a security interest held by the RTC on that date, the FDIC will continue the RTC's prior practice of paying special taxes imposed pursuant to the Mello -Roos Act if the taxes were imposed prior to the RTC's acquisition of an interest in the property, All other special taxes, including the Special Taxes which secure the Bonds may be challenged by the FDIC. 29 AGENDA ITEM No. PAGE Y OF 22 r^. The FDIC has filed claims against the County of Orange with respect to Mello -Roos community facilities district special taxes in the United States Bankruptcy Court and in Federal District Court in which the FDIC has taken a position similar to the position outlined in the Policy Statement. While all of such claims have not been resolved, the Bankruptcy Court has issued a tentative ruling in favor of the FDIC on certain of such claims. The County of Orange has appealed such ruling and the FDIC has cross - appealed. The decision of the United States Court of Appeals for the 9`'' Circuit (the "9`'' Circuit Court") was filed on August 28, 2001. In its decision, the Court stated that the FDIC, as a federal agency, is exempt from the Mello -Roos special tax. The FDIC has also filed suit (the "post- bankruptcy" suit) regarding special taxes imposed after 1994. However, such action has been stayed pending resolution of the 9`h Circuit Court appeal by the FDIC regarding the bankruptcy case. The post - bankruptcy suit has recently been consolidated with the cases filed by the FDIC against other California counties and is pending in the United States District Court in Los Angeles. The FDIC has filed a motion to lift the bankruptcy stay. The District is unable to predict what effect the application of the Policy Statement would have in the event of a delinquency with respect to a parcel in which the FDIC has an interest, although prohibiting the lien of the FDIC to be foreclosed on at a judicial foreclosure sale would likely reduce the number of or eliminate the persons willing to purchase such a parcel at a foreclosure sale. Owners of the Bonds should assume that the District will be unable to foreclose on any parcel owned by the FDIC. The District has not undertaken to determine whether the FDIC currently has, or is likely to acquire, any interest in any of the parcels, and therefore expresses no view concerning the likelihood that the risks described above will materialize while the Bonds are outstanding. Limitations on Remedies Remedies available to the Owners may be limited by a variety of factors and may be inadequate to assure the timely payment of principal of and interest on the Bonds or to preserve the tax - exempt status of the Bonds. Bond Counsel has limited its opinion as to the enforceability of the Bonds and of the Fiscal Agent Agreement to the extent that enforceability may be limited by bankruptcy, insolvency, reorganization, fraudulent conveyance or transfer, moratorium, or others similar laws affecting generally the enforcement of creditor's rights, by equitable principles and by the exercise of judicial discretion. Additionally, the Bonds are not subject to acceleration in the event of the breach of any covenant or duty under the Fiscal Agent Agreement. The lack of availability of certain remedies or the limitation of remedies may entail risks of delay, limitation or modification of the rights of the Owners. Enforceability of the rights and remedies of the owners of the Bonds, and the obligations incurred by the District, may become subject to the federal bankruptcy code and bankruptcy, insolvency, reorganization, moratorium, or similar laws relating to or affecting the enforcement of creditor's rights generally, now or hereafter in effect, equity principles which may limit the specific enforcement under State law of certain remedies, the exercise by the United States of America of the powers delegated to it by the Constitution, the reasonable and necessary exercise, in certain exceptional situations, of the police powers inherent in the sovereignty of the State and its governmental bodies in the interest of serving a significant and legitimate public purpose and the limitations on remedies against joint powers authorities in the State. See "BONDOWNERS' RISKS - Bankruptcy and Foreclosure Delays ", "Billing of Special Taxes" and "Property Controlled by Federal Deposit Insurance Corporation and Other Federal Agencies" herein. Right to Vote on Taxes Act An initiative measure commonly referred to as the "Right to Vote on Taxes Act" was approved by the voters of the State of California at the November 5, 1996 general election. Proposition 218 added Article XIIIC ( "Article XIIIC") and Article XIIID to the California Constitution. According to the "Title and Summary" of Proposition 218 prepared by the California Attorney General, the Proposition 218 limits "the authority of local governments to impose taxes and property- related assessments, fees and charges." 30 AGENDA ITEM, o. OF ZZS pAGE_,s._..- Generally, the provisions of Proposition 218 have not yet been interpreted by the courts, although a number of lawsuits have been filed requesting the courts to interpret various aspects of Proposition 218. N%ao Among other things, Section 3 of Article XI1IC states that "the initiative power shall not be prohibited or otherwise limited in matters of reducing or repealing any local tax, assessment, fee or charge." Proposition 218 provides for a procedure, which includes notice, hearing, protest and voting requirements to alter the rate and method of apportionment of an existing special tax. However, Proposition 218 prohibits a legislative body from adopting any resolution to reduce the rate of any special tax or terminate the levy of any special tax pledged to repay any debt incurred pursuant to Proposition 218 unless such legislative body determines that the reduction or termination of the special tax would not interfere with the timely retirement of that debt. Although the matter is not free from doubt, it is likely that the exercise by the voters in the District of the initiative power referred to in Article XIIIC to reduce or terminate the Special Tax is subject to the same restrictions as are applicable to the District, pursuant to the Act. Accordingly, although the matter is not free from doubt, it is likely that the Proposition 218 has not conferred on the voters in the District the power to repeal or reduce the Special Taxes if such reduction would interfere with the timely retirement of the Bonds. It may be possible, however, for voters or the District to reduce the Special Taxes in a manner which does not interfere with the timely repayment of the Bonds, but which does reduce the maximum amount of Special Taxes that may be levied in any year below the existing levels. Therefore, no assurance can be given with respect to the levy of Special Taxes for Administrative Expenses. Furthermore, no assurance can be given with respect to the future levy of the Special Taxes in amounts greater than the amount necessary for the timely retirement of the Bonds. The interpretation and application of Proposition 218 will ultimately be determined by the courts with respect to a number of the matters discussed above, and it is not possible at this time to predict with certainty the outcome of such determination or the timeliness of any remedy afforded by the courts. Ballot Initiatives and Legislative Measures Proposition 218 was adopted pursuant to a measure qualified for the ballot pursuant to California's constitutional initiative process and the State Legislature has in the past enacted legislation which has altered the spending limitations or established minimum funding provisions for particular activities. From time to time, other initiative measures could be adopted by California voters or legislation enacted by the State Legislature. The adoption of any such initiative or enactment of legislation might place limitations on the ability of the State, the City or local districts to increase revenues or to increase appropriations or on the ability of a property owner to complete the development of the property. Early Bond Redemption The Bonds are subject to optional, special mandatory and mandatory redemption prior to their respective stated maturities. Special mandatory redemption from prepayment of Bonds from amounts constituting prepayments of Special Taxes may occur on any date (see "THE BONDS - Redemption" herein). Loss of Tax Exemption As discussed under the caption "LEGAL MATTERS - Tax Exemption" herein, interest on the Bonds could become includable in gross income for purposes of federal income taxation retroactive to the date the Bonds were issued as a result of future acts or omissions of the District in violation of its covenants contained in the Fiscal Agent Agreement. Should such an event of taxability occur, the Bonds are not subject to special redemption or any increase in interest rate and will remain outstanding until maturity or until redeemed under one of the redemption provisions contained in the Fiscal Agent Agreement. r..r✓ 31 AGENDA ITEM NO pqGE�oF 2 IRS Audits The Internal Revenue Service (the "IRS ") has initiated an expanded program for the auditing of tax - exempt bond issues, including both random and targeted audits. I't is possible that the Bonds will be selected for audit by the IRS. It is also possible that the market value of the Bonds might be affected as a result of such an audit of the Bonds (or by an audit of similar bonds). Secondary Market There can be no guarantee that there will be a secondary market for the Bonds or, if a secondary market exists, that such Bonds can be sold for any particular price. Occasionally, because of general market conditions or because of adverse history or economic prospects connected with a particular issue, secondary marketing practices in connection with a particular issue are suspended or terminated. Additionally, prices of issues for which a market is being made will depend upon then prevailing circumstances. Such prices could be substantially different from the original purchase price. 32 AGENDA ITE,M�N�' Ofry Debt Service Coverage The following table presents the projected annual coverage on the Bonds based upon the realization of certain assumptions and the aggregate Assigned Special Tax Rates. No allowance was made for delinquencies. The projection assumes build out at the following unit mix. TABLE NO. 1 COMMUNITY FACILITIES DISTRICT NO. 2005-1 (SERENITY) RATES AND LAND USE ASSUMPTIONS FISCAL YEAR 2005/06 House Square No. of Units Assigned Tax Total Special Footage Per Unit Tax Less than 1801 16 $1,946 $31,136 1801 -2050 85 $2,125 $180,625 2051 -2300 53 $2,598 $137,694 2301 -2550 41 $2,920 $119,720 Greater than 2,551 38 $3,331 $126,578 233 $595,753 Until such time as the receipt of Special Taxes from the levy of the assigned tax rate is sufficient to pay debt service on Bonds, the Rate and Method Apportionment provides for the levy of an undeveloped property tax (see "APPENDIX D - Rate and Method of Apportionment" and "Concentration of Property Ownership" above). The receipt of Special Taxes is subject to several variables described herein. The District provides no assurance that the Special Taxes and the coverage ratios shown will be achieved. 33 Iftwo, ,"w/ AGENDA ITEM NO. LO-- PACE L7_OF ZZ TABLE NO.2 COMMUNITY FACILITIES DISTRICT NO. 2005-1 (SERENITY) SPECIAL TAX BONDS 2006 SERIES A DEBT SERVICE COVERAGE 34 AGENDA ITEM N0. R PAGE 1-790 Special Taxes Fiscal Assumed Administrative Net Special Coverage Year Assiened Rate Expense Taxes Debt Service Ratio 2007 $607,668 ($25,500) $582,168 2008 619,821 (26,010) 593,811 2009 632,218 (26,530) 605,688 2010 644,862 (27,061) 617,801 2011 657,759 (27,602) 630,157 2012 670,915 (28,154) 642,761 2013 684,333 (28,717) 655,616 2014 698,020 (29,291) 668,728 2015 711,980 (29,877) 682,103 2016 726,220 (30,475) 695,745 2017 740,744 (31,084) 709,660 2018 755,559 (31,706) 723,853 2019 770,670 (32,340) 738,330 2020 786,083 (32,987) 753,096 2021 801,805 (33,647) 768,158 2022 817,841 (34,320) 783,521 2023 834,198 (35,006) 799,192 2024 850,882 (35,706) 815,176 2025 867,900 (36,420) 831,479 2026 885,258 (37,149) 848,109 2027 902,963 (37,892) 865,071 2028 921,022 (38,649) 882,372 2029 939,442 (39,422) 900,020 2030 958,231 (40,211) 918,020 2031 977,396 (41,015) 936,381 2032 996,944 (41,835) 955,108 2033 1,016,883 (42,672) 974,210 2034 1,037,220 (43,526) 993,695 2035 1,057,965 (44,396) 1,013,569 2036 1,079,124 (45,284) 1,033,840 34 AGENDA ITEM N0. R PAGE 1-790 THE CITY The City of Lake Elsinore (the "City ") was founded in 1883 and incorporated on April 23, 1888, and in 1893 the Elsinore Valley, previously in San Diego County, became a part of the new County of Riverside. The City is located 73 miles east of Los Angeles, 472 miles south of San Francisco, and 74 miles north of San Diego. It covers an area of approximately 39.1 square miles with 10.5 miles of lake shore and elevation of 1,258 feet above sea level. The City is incorporated as a general law city. The City has a Council/Manager form of municipal government. The City Council appoints the City Manager who is responsible for the day -to -day administration of City business and the coordination of all departments of the City. The City Council is composed of five members elected bi- annually at large to four -year alternating terms. The mayor is selected by the City Council from among its members. The City employs a staff of 37 full -time employees and 18 part-time employees under the direction of the City Manager. The City Council members and term expiration dates are as follows: Council Members Robert Magee, Mayor Robert Schiffner, Mayor Pro Tern Genie Kelley, Member Thomas Buckley, Member Daryl Hickman, Member Current City administrative staff include: Term Expires November, 2008 November, 2008 November, 2008 November, 2006 November, 2006 Robert Brady, City Manager Matt N. Pressey, Director ofAdministrative Services Frederick Ray, City Clerk As of the delivery date of the Bonds, the District has retained Harris & Associates to assist in the preparation of the Special Tax roll and the determination of the amount of Special Taxes required in each Fiscal Year. 35 AGENDA ITEM N0. pgOE_LV _OF 1% r 1•'J THE DISTRICT The information set forth herein regarding ownership of real property in the District, the Developer and any proposed development of property in the District was provided by the Developer and has not been independently verified. The City makes no representation as to the accuracy or completeness of any such information. This information has been included because it is considered relevant to an informed evaluation of the District. As development of property in the District has not been completed, no assurance can be given that it will occur, that it will occur as described herein, or that it will occur in a timely manner. The information should not be construed to suggest that the Bonds or the Special Taxes that will be used to pay the Bonds are personal obligations of the Developer. The owner of property within the District will not be personally liable for payments of the Special Taxes to be applied to pay the principal of and interest on the Bonds. Accordingly, the Developer's financial statements have not been included in this Official Statement. Furthermore, no representation is made that the Developer will have funds available to complete the development within the District. Boundaries of the District The boundaries of the District coincide with the development generally known as Serenity. The District is located in the southern portion of the City, 3 miles east of the Interstate 15 freeway at Baxter Street. The boundaries of the District are described on the reduced scale map entitled "Boundary Map of Community Facilities District No. 2005 -1 (Serenity)." A full scale map is on file with the City Clerk of the City and was recorded with the County Recorder, County of Riverside. Facilities and Fees to be Financed by the District The District is authorized to issue the Bonds to fund the planning, design, permitting and construction of public infrastructure consisting primarily of street, sewer, water, storm drain, park facilities as well as the funding of certain City and Elsinore Valley Municipal Water District fees. The following table summarizes authorized District facilities and fees which are to be designed, acquired or constructed, or paid from proceeds of the Bonds: 36 AGENDA ITEM NO. 4 PAGE /g/ OF 2Z Boundary Map 37 AGENDA ITEM NO. 4q— PAGE % Z OF ZZ Aerial Photo 38 AGENDA ITEM N0. PAGE_LLI -0F `460 TABLE NO.3 CITY OF LAKE ELSINORE COMMUNITY FACILITIES DISTRICT 2005 -1 (SERENITY) ELIGIBLE FACILITIES COSTS (Estimated Costs) Facilities Cost Estimate Improvements Street Improvements — (including but not limited to, appurtenant sewer, water, drainage, streetscape, and traffic signals) $ $3,213,494 Public Park / Recreational Improvements $ 1,013,865 City of Lake Elsinore Impact Fees Library Fee $ 34,950 Traffic Impact Fee $ 278,901 Street Light Fees $ 54,837 Drainage Fee $ 308,696 Total Lake Elsinore Impact Fees $ 677,384 EVMWD Fees Water Fees $ 1,410,675 Sewer Fees $ 1,237,929 Irrigation Meter Fee 103,052 Total EVMWD Fees $ 2,751,657 Total Estimated Cost $ 7,656,400 To the extent the proceeds of the Bonds are insufficient to fund all of the eligible costs for all of the authorized facilities or fees, such costs will be the responsibility of the Developer. The Developer KB HOME Coastal Inc. ( "KB Home," the "Property Owner," or the "Developer ") is a California corporation and a wholly -owned subsidiary of KB HOME, a Delaware corporation ( "KB Home 39 AGENDA ITEM NO. � PAGE I&q OF 2Z /" Corporation "). KB Home Corporation is one of the Southern California's largest homebuilders. KB Home Corporation has domestic operating divisions in California, Arizona, Nevada, New Mexico, Colorado, Illinois, Indiana, Florida, Texas, Georgia, North Carolina, South Carolina and Wisconsin. Kaufman and Broad S.A., KB Home Corporation's majority -owned subsidiary, is' one of the largest homebuilders in France. KB Home Corporation also operates a full- service mortgage company for the convenience of its buyers. KB Home Corporation is subject to the informational requirements of the Securities Exchange Act of 1934, as amended (the "Exchange Act "), and in accordance therewith file reports, proxy statements and other information with the SEC. Such reports, proxy statements and other information may be inspected and copied at the public reference facilities maintained by the SEC at 450 Fifth Street, N.W., Washington D.C. 20549 and at the SEC's regional office at Northwestern Atrium Center, 500 West Madison Street, Suite 1400, Chicago, Illinois 60661. Copies of such material can be obtained from the public reference section of the SEC at 450 Fifth Street, N.W., Washington D.C. 20549 at prescribed rates. In addition, the aforementioned material may also be inspected at the offices of the New York Stock Exchange, Inc. (the "NYSE ") at 20 Broad Street, New York, New York 10005. KB Home Corporation is listed on the NYSE under the ticker symbol "KBH." Copies of KB Home Corporation's financial statements prepared in accordance with statutory accounting standards are available from KB Home Corporation. The address of the KB Home Corporation's administrative offices and its telephone number are 10990 Wilshire Boulevard, Los Angeles, California 90024 and (310) 231 -4000. KB Home Corporation's internet address is www.kbhome.com. Financial information about KB Home Corporation is included in documents filed with the SEC, particularly in its Annual Report on Form I OK and its most recent quarterly Report on Form I OQ. All documents subsequently filed by the KB Home pursuant to the requirements of the Exchange Act after the date of this Official Statement will be available for inspection in the same manner as described above. Reference to KB Home Corporation's website, financial statements and filings with the SEC are included for reference only and the information on the website and in the documents referenced are not part of this Official Statement and are not incorporated by reference into this Official Statement. No representation is made in this Official Statement as to the accuracy or adequacy of the information included in such internet site, financial statements, or filings with the SEC. KB Home Corporation operates 29 regional divisions. Each division is run by its own local management team, and is responsible for all operations within its market area. Some aspects of functions such as marketing and purchasing, are centralized in order to take advantage of economies of scale. KB Home Corporation is also one of the few builders with its own in -house design department, responsible for all architectural and new community planning. The Developer — as one of KB Home Corporation's 29 divisions - has opened 65 new communities throughout Southern California since inception in 1991. The division presently has 9 projects pending or under construction. The following is a summary of certain of its projects in Riverside County: Location Name Average Base Price Square Footage Hemet Autumn Ridge $352,990 2,255 -3,117 Hemet Belmonte Not Determined 2,255 -2,873 40 AGENDA ITEM N0. PAIGE OF ZZ Hemet Seville $319,565 1,597 -1,999 Lake Elsinore Cedar Point $415,990 2,103 -2,873 Lake Elsinore Fairfield Not Determined 1,740 -2,228 Lake Elsinore Madison Not Determined 1,975 -2,762 Menifee Berkshire $409,990 2,469 -3,408 Menifee Camden $351,990 1,740 -2,459 Moreno Valley Cambridge $312,990 1,446 -2,514 Perris Countryside $382,990 2,316 -3,433 Riverside Belmont at Cloverdale Farms $464,990 1,852 -3,099 Riverside Bridgeport Not Determined 3,287 -4,132 Riverside Canterbury at Indian Hills Not Determined 1,531 -2,062 Riverside La Rivera Courtyards Not Determined 1,404 -1,815 Riverside La Rivera Villas Not Determined 1,470 -2,719 Riverside Stone Harbour Not Determined 3,676 -5,187 San Jacinto The Cove Not Determined 1,740 -3,369 Temecula Valdemosa Not Determined 2,684 -3,612 Wildomar Monticello Not Determined 3,146 -3,675 Winchester Brindisi $412,990 1,597 -2,873 Winchester Casabella $265,990 1,053 -2,016 Description of Development The following section describes the proposed development in terms of the type of project and the status of land use entitlements. There can be no assurance that the development plan described herein will be completed or that it will not be modified in the future. In addition, there can be no assurance that sufficient funds will or can be made available to complete the development plan or pay special taxes as described. 41 AGENDA ITEM NO. PAGE / OF,� 00�1 TABLE NO. 4 CITY OF LAKE ELSINORE COMMUNITY FACILITIES DISTRICT 2005 -1 (SERENITY) DESCRIPTION OF DEVELOPMENT (as of January 3, 2006) * The 5 model homes in Tract No. 19344 -3 were sold to KBOne, who is holding the homes open as model homes until the model homes in Tract No. 30846 are completed (estimated to be June 2006). Once the model homes in Tract No. 30846 are opened, the 5 models in Tract No. 19344 -3 will be sold by KBOne (with the assistance of KB Home) to individual homeowners. Source: KB HOME Coastal Inc. 42 AGENDA ITEajL��: Tract No. 30846 Tract No. 19344 -3 Developer KB HOME Coastal KB HOME Coastal Inc. Inc. Number of 222 1 ] Homes Lot Sizes 6,000 Sq. Ft. to 6,041 Sq. Ft. to 11,100 Sq. Ft 10,491 Sq. Ft. Number of 5 5 Models (under construction) (sold to KBOne *) Size Range 1,740 Sq. Ft. to 1,740 Sq. Ft. to 2,762 Sq. Ft. 2,762 Sq. Ft. Price Range (Base) $345,000 to $430,000 $345,000 to $430,000 Building Permits 74 11 Pulled Homes Under 64 n/a Contract with Homebuyers Escrow Closings 0 11 (6 to individual homeowners and the 5 models to KBOne) Absorption First Quarter 2008 Third Quarter 2006 Period * The 5 model homes in Tract No. 19344 -3 were sold to KBOne, who is holding the homes open as model homes until the model homes in Tract No. 30846 are completed (estimated to be June 2006). Once the model homes in Tract No. 30846 are opened, the 5 models in Tract No. 19344 -3 will be sold by KBOne (with the assistance of KB Home) to individual homeowners. Source: KB HOME Coastal Inc. 42 AGENDA ITEajL��: TABLE NO.5 CITY OF LAKE ELSINORE COMMUNITY FACILITIES DISTRICT 2005 -1 (SERENITY) DEVELOPMENTSCHEDULE The following table summarizes actual and projected development milestones as of January 3, 2006, Source: KB HOME Coastal Inc. 43 AGENDA ITEM NO. PAG, % OF Activity Tract No. 30846 Tract No. 19344 -3 I . Grading Started November 2004 November 2004 2. Grading Completed May 2005 December 2004 3. Improvement Plans Submitted January 2004 1987 4. Improvement Plans Approved February 2005 1987 5. Final Map Recorded February 2005 1988 6. Model Homes Started December 2005 N/A 7. Model Homes Completed June 2006 (proposed) N/A 8. Production Homes Started July 2005 November, 2004 9. First Escrows Closing March, 2006 April 2005 Source: KB HOME Coastal Inc. 43 AGENDA ITEM NO. PAG, % OF Financing Plan The following table summarizes the Developer's financing plan to acquire the land, complete the public infrastructure and complete the development of the development: Costs to Complete Finished Lots Amount 1. Land & Entitlements $8,600,000 2. Grading 2,500,000 3. Infrastructure 13,000,000 4. Fees 7,100,000 5. Other 1,200,000 Total Uses $32,400,000 Financing Sources 1. Bond Proceeds $8,200,000 2. Developer Equity 24,200,000 Total Sources $32,400,000 Costs Spent as of 10/31/05 $8,600,000 4,043,589 4,000,000 3,000,000 500,000 $20,143,589 44 9 AGENDA ITEM N0. PAGE / OF Z2S History of Property Tax Payment; Loan Defaults; Bankruptcy. An officer or representative executing a certificate on behalf of the Developer will certify that, to his or her actual knowledge: • Such property owner has never defaulted to any material extent in the payment of special taxes or assessments in connection with the District or any other community facilities districts or assessment districts in California within the past five years. • Such property owner is not currently in default on any loans, lines of credit or other obligation, the result of which could have a material adverse affect on the development by such property owner of its property in the District. • Such property owner is solvent and no proceedings are pending (with proper service of process having been accomplished) or, to its actual knowledge threatened in which such property owner may be adjudicated as bankrupt or become the debtor in a bankruptcy proceeding, or discharged from all of its respective debts or obligations, or granted an extension of time to pay its debts or obligations or a reorganization or readjustment of its debts. • There is no litigation or administrative proceeding of any nature which is pending against such property owner (with proper service of process having been accomplished) or to its actual knowledge, is threatened against such property owner, which if successful, would have a material adverse affect on the ability of such property owner to complete the development and sale of the property it currently owns within the District, or to pay the Special Taxes or ordinary ad valorem property tax obligations when due on its property within the District. KB HOME Greater Los Angeles Inc. ( "KB Greater Los Angeles "), one of KB Home Corporation's divisions, and its affiliate, KB Home Holdings Inc., owned or formerly owned approximately 500 acres of undeveloped land in the Rosamond area of southern Kern County, California. The property is within two assessment districts formed by the Rosamond Community Services District (AD 1990 -2 and AD 1991 -3), both of which had issued assessment bonds. In approximately 1995, KB Greater Los Angeles and KB Home Holdings Inc. determined that based upon changed market conditions, the value of the property did not support the tax burden on the property and KB Greater Los Angeles and KB Home Holdings Inc. discontinued paying the ad valorem property taxes and the special assessments on the property. The Rosamond Community Services District has obtained a foreclosure judgment against the property and a sheriff's sale was held on July 30, 2002. There were no bidders at the sheriff's sale. Kern County held a tax sale on March 3, 2003, and four parcels, totaling approximately 480 acres, were sold at the tax sale to two buyers. The sale of these four parcels was later rescinded and title to these four parcels reverted back to KB Greater Los Angeles or KB Home Holdings Inc., as the case may be. Kern County held a tax sale in late 2005 that resulted in the sale of four parcels, and as of December 1, 2005, KB Greater Los Angeles and KB Home Holdings Inc. continued to own approximately 122 acres in three tax parcels which are still in default. 45 AGENDA ITEM N0. Qq pAG % I p OF Z-Z DEBT STRUCTURE Outstanding Indebtedness The District does not have any outstanding indebtedness other than the Bonds. Additional Obligations The Fiscal Agent Agreement does not authorize additional Bonds. 46 AGENDA ITEM N0. LU PAGE / q1 0 F2�� Scheduled Debt Service on the Bonds The following is the scheduled Debt Service on the Bonds Interest Payment Date Principal _ Coupon September 1, 2006 March 1, 2007 September 1, 2007 March 1, 2008 September 1, 2008 March 1, 2009 September 1, 2009 March 1, 2010 September 1, 2010 March 1, 2011 September 1, 2011 March 1, 2012 September 1, 2012 March 1, 2013 September 1, 2013 March 1, 2014 September 1, 2014 March 1, 2015 September 1, 2015 March 1, 2016 September 1, 2016 March 1, 2017 September 1, 2017 March 1, 2018 September 1, 2018 March 1, 2019 September 1, 2019 March 1, 2020 September 1, 2020 March 1, 2021 September 1, 2021 March 1, 2022 September 1, 2022 March 1, 2023 September 1, 2023 March 1, 2024 September 1, 2024 March 1, 2025 September 1, 2025 March 1, 2026 September 1, 2026 March 1, 2027 September 1, 2027 March 1, 2028 September 1, 2028 March 1, 2029 September 1, 2029 March 1, 2030 September 1, 2030 March 1, 2031 September 1, 2031 March 1, 2032 September 1, 2032 March 1, 2033 September 1, 2033 March 1, 2034 September 1, 2034 March 1, 2035 September 1, 2035 March 1, 2036 September 1, 2036 47 Interest Annual Debt Service L�J L� AGENDA ITEM N0. LQ____. PAGE % ��OF,2 ``_ SUMMARY OF THE FISCAL AGENT AGREEMENT The following is a summary of certain provisions of the Fiscal Agent Agreement and does not purport to be a complete restatement thereof. Reference is hereby made to the Fiscal Agent Agreement for the complete terms thereof. Copies of the Fiscal Agent Agreement are available from the City upon request. Creation of Funds. There is created and established and shall be maintained by the Fiscal Agent the following funds and accounts: (1) The Special Tax Fund (the "Special Tax Fund ") (in which there shall be established and created an Interest Account, a Principal Account, a Redemption Account, a Reserve Account and an Administrative Expense Account); (2) The Surplus Fund (the "Surplus Fund "); and (3) The Acquisition and Construction Fund (the "Acquisition and Construction Fund ") (in which there shall be established a Costs of Issuance Account). The amounts on deposit in the foregoing funds, accounts and subaccounts shall be held by the Fiscal Agent in trust and the Fiscal Agent shall invest and disburse the amounts in such funds, accounts and subaccounts in accordance with the provisions of the Fiscal Agent Agreement and shall disburse investment earnings thereon in accordance with the provisions of the Fiscal Agent Agreement. Except as required to be segregated into funds and accounts as described in the Fiscal Agent Agreement, money held by the Fiscal Agent in trust hereunder need not be segregated from other funds except to the extent required by law. Deposits to and Disbursements from Special Tax Fund. The CFD shall, on each date on which it receives Special Taxes, transfer the Special Taxes to the Fiscal Agent for deposit in the Special Tax Fund in accordance with the terms of the Fiscal Agent Agreement. The Fiscal Agent shall transfer the amounts on deposit in the Special Tax Fund on the dates and in the amounts set forth in the following Sections, in the following order of priority, to: (a) The Interest Account of the Special Tax Fund; (b) The Principal Account of the Special Tax Fund; (c) The Redemption Account of the Special Tax Fund; (d) The Reserve Account of the Special Tax Fund; (e) The Administrative Expense Account of the Special Tax Fund; and (f) The Surplus Fund. At the maturity of all of the Bonds and, after all principal and interest then due on the Bonds then Outstanding has been paid or provided for and any amounts owed to the Fiscal Agent have been paid in full, moneys in the Special Tax Fund and any accounts therein shall be transferred to the CFD and may be used by the CFD for any lawful purpose. Interest Account and Principal Account of the Special Tax Fund. The principal of and interest due on the Bonds until maturity, other than principal due upon redemption, shall be paid by the Fiscal Agent from the Principal Account and the Interest Account of the Special Tax Fund, respectively. For the purpose of assuring that the payment of principal of and interest on the Bonds will be made when due, at least five Business Days prior to each March 1 and September 1, the Fiscal Agent shall make the following transfers from the Special Tax Fund first to the Interest Account and then to the Principal Account; 48 AGENDA ITEM N0. L�q pAuu LQ-9i—o F %. provided, however, that to the extent that deposits have been made in the Interest Account or the Principal Account from the proceeds of the sale of an issue of the Bonds, or otherwise, the transfer from the Special Tax Fund need not be made; and provided, further, that, if amounts in the Special Tax Fund are inadequate to make the foregoing transfers, then any deficiency shall be made up by an immediate transfer from the Reserve Account: (1) To the Interest Account, an amount such that the balance in the Interest Account five Business Days prior to each Interest Payment Date shall be equal to the installment of interest due on the Bonds on said Interest Payment Date and any installment of interest due on a previous Interest Payment Date which remains unpaid. Moneys in the Interest Account shall be used for the payment of interest on the Bonds as the same become due. (2) To the Principal Account, an amount such that the balance in the Principal Account five Business Days prior to September 1 of each year, commencing September 1, 2007 shall at least equal the principal payment due on the Bonds maturing on such September 1 and any principal payment due on a previous September I which remains unpaid. Moneys in the Principal Account shall be used for the payment of the principal of such Bonds as the same become due at maturity. Redemption Account of the Special Tax Fund (l) On each September I on which a Sinking Fund Payment is due, after the deposits have been made to the Interest Account and the Principal Account of the Special Tax Fund, the Fiscal Agent shall next transfer into the Redemption Account of the Special Tax Fund from the Special Tax Fund the amount needed to make the balance in the Redemption Account five Business Days prior to each September 1 equal to the Sinking Fund Payment due on any Outstanding Bonds on such September 1; provided, however, that, if amounts in the Special Tax Fund are inadequate to make the foregoing transfers, then any deficiency shall be made up by an immediate transfer from the Reserve Account, if funded. Moneys so deposited in the Redemption Account shall be used and applied by the Fiscal Agent to call and redeem Term Bonds in accordance with the Sinking Fund Payment schedule set forth in the Fiscal Agent Agreement. (2) . After making the deposits to the Interest Account and the Principal Account of the Special Tax Fund and to the Redemption Account for Sinking Fund Payments then due, and in accordance with the CFD's election to call Bonds for optional redemption, the Fiscal Agent shall transfer from the Special Tax Fund and deposit in the Redemption Account moneys available for the purpose and sufficient to pay the interest, the principal and the premiums, if any, payable on the Bonds called for optional redemption; provided, however, that amounts in the Special Tax Fund (exclusive of amounts transferred to the Administrative Expense Account) may be applied to optionally redeem Bonds only if immediately following such redemption the amount in the Reserve Account will equal the Reserve Requirement. (3) All prepayments of Special Tax shall be deposited in the Redemption Account to be used to redeem Bonds on the next date for which notice of redemption can timely be given. (4) Moneys set aside in the Redemption Account shall be used solely for the purpose of redeeming Bonds and shall be applied on or after the redemption date to the payment of the principal of and premium, if any, on the Bonds to be redeemed upon presentation and surrender of such Bonds and in the case of an optional redemption to pay the interest thereon; provided, however, that in lieu or partially in lieu of such call and redemption, moneys deposited in the Redemption Account as set forth above may be used to purchase Outstanding Bonds. Purchases of Outstanding Bonds may be made by the CFD at public or private sale as and when and at such prices as the CFD may in its discretion determine but only at prices (including brokerage or other expenses) not more than par plus accrued interest, plus, in the case of moneys set aside for an optional redemption, the premium applicable at the next following call date according to the premium schedule established pursuant to the Fiscal Agent Agreement. Any accrued 49 AGENDA ITEM NO PAIGE I q OF ZZ interest payable upon the purchase of Bonds may be paid from the amount reserved in the Interest Account of the Special Tax Fund for the payment of interest on the next following Interest Payment Date. Reserve Account of the Special Tax Fund. There shall be maintained in the Reserve Account of the Special Tax Fund an amount equal to the Reserve Requirement. The amounts in the Reserve Account shall be applied as follows: (1) Moneys in the Reserve Account shall be used solely for the purpose of paying the principal of, including Sinking Fund Payments, and interest on any Bonds when due in the event that the moneys in the Interest Account and the Principal Account of the Special Tax Fund are insufficient therefor or moneys in the Redemption Account of the Special Tax Fund are insufficient to make a Sinking Fund Payment when due. If the amounts in the Interest Account, the Principal Account or the Redemption Account of the Special Tax Fund are insufficient to pay the principal of, including Sinking Fund Payments, or interest on any Bonds when due, the Fiscal Agent shall withdraw from the Reserve Account for deposit in the Interest Account, the Principal Account or the Redemption Account of the Special Tax Fund, as applicable, moneys necessary for such purposes. (2) Whenever moneys are withdrawn from the Reserve Account, after making the required transfers referred to in the Fiscal Agent Agreement, the Fiscal Agent shall transfer to the Reserve Account from available moneys in the Special Tax Fund, or from any other legally available funds which the CFD elects to apply to such purpose, the amount needed to restore the amount of such Reserve Account to the Reserve Requirement. Moneys in the Special Tax Fund shall be deemed available for transfer to the Reserve Account only if the Fiscal Agent determines that such amounts will not be needed to make the deposits required to be made to the Interest Account, the Principal Account or the Redemption Account of the Special Tax Fund. If amounts in the Special Tax Fund or otherwise transferred to replenish the Reserve Account are inadequate to restore the Reserve Account to the Reserve Requirement, then the 10� CFD shall include the amount necessary fully to restore the Reserve Account to the Reserve Requirement in the next annual Special Tax levy to the extent of the maximum permitted Special Tax rates. (3) In connection with any redemption of the Bonds, or a partial defeasance of the Bonds, amounts in the Reserve Account may be applied to such redemption or partial defeasance so long as the amount on deposit in the Reserve Account following such redemption or partial defeasance equals the Reserve Requirement. To the extent that the Reserve Account is at the Reserve Requirement as of the first day of the final Bond Year for the Bonds, amounts in the Reserve Account may be applied to pay the principal of and interest due on the Bonds in the final Bond Year for such issue. Moneys in the Reserve Account in excess of the Reserve Requirement not transferred in accordance with the preceding provisions of this paragraph shall be withdrawn from the Reserve Account on the fifth Business Day before each March I and September 1 and transferred to the Acquisition and Construction Fund until the Fiscal Agent receives a Certificate of Authorized Representative of the CFD that all Project Costs have been funded, and thereafter to the Interest Account Of the Special Tax Fund. Administrative Expense Account of the Special Tax Fund. The Fiscal Agent shall transfer from the Special Tax Fund and deposit in the Administrative Expense Account of the Special Tax Fund amounts necessary to make timely payment of Administrative Expenses and shall be disbursed by the Fiscal Agent to pay Administrative Expenses, all as instructed by the CFD pursuant to a Written Request of the CFD. Moneys in the Administrative Expense Account of the Special Tax Fund may be invested in any Authorized Investments as directed by an Authorized Representative of the CFD. Surplus Fund. After making the transfers required by the Fiscal Agent Agreement, as soon as practicable after each September 1, the Fiscal Agent shall transfer all remaining amounts in the Special Tax Fund to the Surplus Fund, other than amounts in the Special Tax Fund which the CFD directs the Fiscal Agent by Written Request of the CFD to retain because the CFD has included such funds as being available in the Special Tax Fund in calculating the amount of the levy of Special Taxes for such Fiscal Year pursuant to the Fiscal Agent Agreement. Moneys deposited in the Surplus Fund shall be transferred by the Fiscal 50 AGENDA ITEM 3Z.�� NO �-O PAGE Agent at the written request of the CFD (i) to any other reserve account established in connection with issuance of bonds for any other improvement area within the CFD to the extent amounts in such reserve account is less than the reserve requirement for that reserve account, and (ii) to the Administrative Expense Account of the Special Tax Fund to pay Administrative Expenses to the extent that the amounts on deposit in the Administrative Expense Account of the Special Tax Fund are insufficient to pay Administrative Expenses or, upon the Written Request of the CFD, may be disbursed to the CFD to be expended for any other lawful purpose of the CFD. The amounts in the Surplus Fund are not pledged to the repayment of the Bonds. In the event that the CFD reasonably expects to use any portion of the moneys in the Surplus Fund to pay debt service on any Outstanding Bonds, upon the written direction of the CFD, the Fiscal Agent will segregate such amount into a separate subaccount and the moneys on deposit in such subaccount of the Surplus Fund shall be invested in Authorized Investments the interest on which is excludable from gross income under Section 103 of the Code (other than bonds the interest on which is a tax preference item for purposes of computing the alternative minimum tax of individuals and corporations under the Code) or in Authorized Investments at a yield not in excess of the yield on the issue of Bonds to which such amounts are to be applied, unless, in the opinion of Bond Counsel, investment at a higher yield will not adversely affect the exclusion from gross income for federal income tax purposes of interest on the Bonds which were issued on a tax - exempt basis for federal income tax purposes. Investments. Moneys held in any of the funds and accounts under the Fiscal Agent Agreement shall be invested at the Written Request of the CFD in accordance with the limitations set forth below only in Authorized Investments which shall be deemed at all times to be a part of such funds and accounts. Any loss resulting from such Authorized Investments shall be credited or charged to the fund or account from which such investment was made, and any investment earnings on a fund or account shall be applied as follows: (i) investment earnings on all amounts deposited in the Special Tax Fund (exclusive of amounts transferred to the Reserve Account), Surplus Fund, Acquisition and Construction Fund and each Account therein shall be deposited in those respective funds and accounts, and (ii) all other investment earnings shall be deposited in the Interest Account of the Special Tax Fund; provided, however, to the extent moneys in the Reserve Account exceed the Reserve Requirement, such excess amounts shall be deposited and transferred pursuant to the Fiscal Agent Agreement. Moneys in the funds and accounts held under the Fiscal Agent Agreement may be invested by the Fiscal Agent at the Written Request of the CFD received at least 2 Business Days prior to the investment date, from time to time, in Authorized Investments subject to the following restrictions: (1) Moneys in the Interest Account, the Principal Account and the Redemption Account of the Special Tax Fund shall be invested only in Authorized Investments which will by their terms mature, or in the case of an Investment Agreement are available for withdrawal without penalty, on such dates so as to ensure the payment of principal of, premium, if any, and interest on the Bonds as the same become due. (2) Moneys in the Acquisition and Construction Fund shall be invested in Authorized Investments which will by their terms mature, or in the case of an Investment Agreement are available without penalty, as close as practicable to the date the CFD estimates the moneys represented by the particular investment will be needed for withdrawal from the Acquisition and Construction Fund. Notwithstanding anything in the Fiscal Agent Agreement to the contrary, amounts in the Acquisition and Construction Fund on the Delivery Date for the Bonds shall not be invested at yields greater than those set forth in the Tax Certificate. (3) One -half of the amount in the Reserve Account of the Special Tax Fund may be invested only in Authorized Investments which mature not later than two years from their date of purchase by the Fiscal Agent, and one -half of the amount in the Reserve Account may be invested only in Authorized Investments which mature not more than three years from the date of purchase by the Fiscal Agent; provided that such amounts may be invested in an Investment Agreement to the final maturity of the Bonds so long as such amounts may be withdrawn at any time, without penalty, for application in N"No 51 AGENDA ITEM NO. PAGE_LY_LP OF ZZ T_ accordance with the Fiscal -Agent Agreement;, and provided that no such Authorized Investment of amounts in the Reserve Account allocable to the Bonds shall mature later than the final maturity date of the Bonds. (4) In the absence of Written Request of the CFD providing investment directions, the Fiscal Agent shall invest solely in Authorized Investments specified in clause (4) of the definition thereof. The Fiscal Agent shall sell at the best price obtainable, or present for redemption, any Authorized Investment whenever it may be necessary to do so in order to provide moneys to meet any payment or transfer to such Funds and Accounts or from such Funds and Accounts. For the purpose of determining at any given time the balance in any such Funds and Accounts, any such investments constituting a part of such Funds and Accounts shall be valued at their cost, except that amounts in the Reserve Account shall be valued at the fair market value thereof and marked to market at least annually. Notwithstanding anything in the Fiscal Agent Agreement to the contrary, the Fiscal Agent shall not be responsible for any loss from investments, sales or transfers undertaken in accordance with the provisions of the Fiscal Agent Agreement. The Fiscal Agent or an affiliate may act as principal or agent in connection with the acquisition or disposition of any Authorized Investments and shall be entitled to its customary fees therefor. Any Authorized Investments that are registrable securities shall be registered in the name of the Fiscal Agent. The Fiscal Agent is authorized, in making or disposing of any investment permitted by this Section, to deal with itself (in its individual capacity) or with any one or more of its affiliates, whether it or such affiliate is acting as an agent of the Fiscal Agent or for any third person or dealing as principal for its own account. Covenants. So long as any of the Bonds issued hereunder are Outstanding and unpaid, the CFD makes the following covenants with the Bondowners under the provisions of the Act and the Fiscal Agent Agreement (to be performed by the CFD or its proper officers, agents or employees), which covenants are necessary and desirable to secure the Bonds and tend to make them more marketable; provided, however, that said covenants do not require the CFD to expend any funds or moneys other than the Special Taxes and other amounts deposited to the Special Tax Fund: (1) Punctual Payment; Against Encumbrances. The CFD covenants that it will receive all Special Taxes in trust and will immediately deposit such amounts with the Fiscal Agent, and the CFD shall have no beneficial right or interest in the amounts so deposited except as provided by the Fiscal Agent Agreement. All such Special Taxes shall be disbursed, allocated and applied solely to the uses and purposes set forth in the Fiscal Agent Agreement, and shall be accounted for separately and apart from all other money, funds, accounts or other resources of the CFD. The CFD covenants that it will duly and punctually pay or cause to be paid the principal of and interest on every Bond issued hereunder, together with the premium, if any, thereon on the date, at the place and in the manner set forth in the Bonds and in accordance with the Fiscal Agent Agreement to the extent that Special Taxes are available therefor, and that the payments into the Funds and Accounts created hereunder will be made, all in strict conformity with the terms of the Bonds and the Fiscal Agent Agreement, and that it will faithfully observe and perform all of the conditions, covenants and requirements of the Fiscal Agent Agreement and all Supplemental Fiscal Agent Agreements and of the Bonds issued hereunder. The CFD will not mortgage or otherwise encumber, pledge or place any charge upon any of the Special Taxes except as provided in the Fiscal Agent Agreement, and will not issue any obligation or security having a lien or charge upon the Special Taxes superior to or on a parity with the Bonds. Nothing in the Fiscal Agent Agreement shall prevent the CFD from issuing or incurring indebtedness which is payable from a pledge of Special Taxes which is subordinate in all respects to the pledge of Special Taxes to repay the Bonds. (2) Levy of Special Tax. Beginning in Fiscal Year 2006 -07 and so long as any Bonds issued under the Fiscal Agent Agreement are Outstanding, the CFD covenants to levy the Special Tax in an amount 52 AGENDA ITEM NO. PACE OF 2? , sufficient, together with other amounts on deposit in the Special Tax Fund and the Surplus Fund and available for such purpose, to pay (1) the principal of and interest on the Bonds when due, (2) the Administrative Expenses, and (3) any amounts required to replenish the Reserve Account of the Special Tax Fund to the Reserve Requirement. (3) Commence Foreclosure Proceedings. The CFD covenants for the benefit of the Owners of the Bonds that it will determine or cause to be determined, no later than March 1 and August I of each year, whether or not any owner of the property within the District are delinquent in the payment of Special Taxes and, if such delinquencies exist, the CFD will order and cause to be commenced no later than April 15 (with respect to the March I determination date) or September 1 (with respect to the August 1 determination date), and thereafter diligently prosecute, an action in the superior court to foreclose the lien of any Special Taxes or installment thereof not paid when due, provided, however, that the CFD shall not be required to order the commencement of foreclosure proceedings if (i) the total Special Tax delinquency in the District for such Fiscal Year is less than five percent (5 %) of the total Special Tax levied in such Fiscal Year, and (ii) the CFD shall have established from any source of lawfully available funds (other than Special Taxes) an escrow fund to provide for the payment of principal of and interest on the Bonds. Notwithstanding the foregoing, if the CFD determines that any single property owner in the District is delinquent in excess of ten thousand dollars ($10,000) in the payment of the Special Tax, then it will diligently institute, prosecute and pursue foreclosure proceedings against such property owner. Notwithstanding any provision of the Act or other law of the State to the contrary, in connection with any foreclosure related to delinquent Special Taxes: (a) The CFD or the Fiscal Agent is authorized to credit bid at any foreclosure sale, without any requirement that funds be set aside in the amount so credit bid, in the amount specified in Section 53356.5 of the Act, or such less amount as determined under clause (b) below or otherwise under Section 53356.6 of the Act. (b) The CFD may permit, in its sole and absolute discretion, property with delinquent Special Tax payments to be sold for less than the amount specified in Section 53356.5 of the Act, if it determines that such sale is in the interest of the Bond Owners. The Bond Owners, by their acceptance of the Bonds, consent to such sale for such lesser amounts (as such consent is described in Section 53356.6 of the Act), and release the CFD and the City, and their respective officers and agents from any liability in connection therewith. If such sale for lesser amounts would result in less than full payment of principal of and interest on the Bonds, the CFD will use best efforts to seek approval of the Bond Owners. (c) The CFD is authorized to use amounts in the Special Tax Fund to pay costs of foreclosure of delinquent Special Taxes. (d) The CFD may forgive all or any portion of the Special Taxes levied or to be levied on any parcel in the District so long as the CFD determines that such forgiveness is not expected to adversely affect its obligation to pay principal of and interest on the Bonds as such payments become due and payable. (4) Payment of Claims. The CFD will pay and discharge any and all lawful claims for labor, materials or supplies which, if unpaid, might become a lien or charge upon the Special Taxes or; other funds in the Special Tax Fund (exclusive of amounts transferred to the Administrative Expense Account), or which might impair the security of the Bonds then Outstanding; provided that nothing contained in the Fiscal Agent Agreement shall require the CFD to make any such payments so long as the CFD in good faith shall contest the validity of any such claims. (5) Books and Accounts. The CFD will keep proper books of records and accounts, separate from all other records and accounts of the CFD, in which complete and correct entries shall be made of all transactions relating to the levy of the Special Tax and the deposits to the Special Tax Fund. Such books 53 LINDA ITEM", W, PAGE l qk OF ZZ S of records and accounts shall at all times during business hours be subject to the inspection of the Fiscal Agent or of the Owners of the Bonds then Outstanding or their representatives authorized in writing. (6) Tax Covenants. The CFD covenants that it shall not use, and shall not permit the use of, and shall not omit to use Gross Proceeds or any other amounts (or any property the acquisition, construction or improvement of which is to be financed directly or indirectly with Gross Proceeds) in a manner that if made or omitted, respectively, could cause the interest on any Bond to fail to be excluded pursuant to section 103(a) of the Code from the gross income of the owner thereof for federal income tax purposes. (7) Reduction of Maximum Special Taxes. The CFD finds and determines that, historically, delinquencies in the payment of special taxes authorized pursuant to the Act in community facilities districts in Southern California have from time to time been at levels requiring the levy of special taxes at the maximum authorized rates in order to make timely payment of principal of and interest on the outstanding indebtedness of such community facilities districts. For this reason, the CFD determines that a reduction in the maximum Special Tax rates authorized to be levied on parcels in the CFD below the levels provided in the Fiscal Agent Agreement would interfere with the timely retirement of the Bonds. The CFD determines it to be necessary in order to preserve the security for the Bonds to covenant, and, to the maximum extent that the law permits it to do so, the CFD does covenant, that it shall not initiate proceedings to reduce the maximum Special Tax rates for the CFD, unless, in connection therewith, (i) the CFD receives a certificate from one or more Independent Financial Consultants which, when taken together, certify that, on the basis of the parcels of land and improvements existing in the District as of the July I preceding the reduction, the maximum amount of the Special Tax which may be levied on then existing Developed Property (as defined in the Rate and Method of Apportionment of Special Taxes then in effect in the District) in each Bond Year for any Bonds Outstanding will equal at least 110% of the sum on the estimated Administrative Expenses and gross debt service in that Bond Year on all Bonds to remain Outstanding after the reduction is approved, and (ii) the CFD finds that any reduction made under such conditions will not adversely affect the interests of the Owners of the Bonds. For purposes of estimating Administrative Expenses for the foregoing calculation, the Independent Financial Consultant shall compute the Administrative Expenses for the current Fiscal Year and escalate that amount by two percent (2 %) in each subsequent Fiscal Year. (8) Covenants to Defend. The CFD covenants that in the event that any initiative is adopted by the qualified electors in the CFD which purports to reduce the maximum Special Tax below the levels specified in the Fiscal Agent Agreement or to limit the power of the CFD to levy the Special Taxes for the purposes set forth in the Fiscal Agent Agreement, it will commence and pursue legal action in order to preserve its ability to comply with such covenants. (9) Annual Reports to CDIAC. Not later than October 30 of each year, commencing October 30, 2006 and until the October 30 following the final maturity of the Bonds, the CFD shall cause the City to supply the information required by Section 53359.5(b) or (c) of the Act to CDIAC (on such forms as CDIAC may specify). (10) Continuing Disclosure. The CFD covenants to comply with the terms of the Continuing Disclosure Agreement executed by it with respect to the Bonds. Supplemental Fiscal Agent Agreements or Orders Not Requiring Bondowner Consent. The CFD may from time to time, and at any time, without notice to or consent of any of the Bondowners, adopt Supplemental Fiscal Agent Agreements for any of the following purposes: (1) to cure any ambiguity, to correct or supplement any provisions in the Fiscal Agent Agreement which may be inconsistent with any other provision in the Fiscal Agent Agreement, or to make any other provision with respect to matters or questions arising under the Fiscal Agent Agreement or in any additional resolution or order, provided that such action is not materially adverse to the interests of the Bondowners; 54 AGENDA ITEM N0. (2) to add to the covenants and agreements of and the limitations and the restrictions upon the CFD contained in the Fiscal Agent Agreement, other covenants, agreements, limitations and restrictions to be .%W*,► observed by the CFD which are not contrary to or inconsistent with the Fiscal Agent Agreement as theretofore in effect or which further secure Bond payments; (3) to modify, amend or supplement the Fiscal Agent Agreement in such manner as to permit the qualification hereof under the Trust Indenture Act of 1939, as amended, or any similar federal statute hereafter in effect, or to comply with the Code or regulations issued thereunder, and to add such other terms, conditions and provisions as may be permitted by said act or similar federal statute, and which shall not materially adversely affect the interests of the Owners of the Bonds then Outstanding; or (4) to modify, alter or amend the rate and method of apportionment of the Special Taxes in any manner so long as such changes do not reduce the maximum Special Taxes that may be levied in each year on property within the CFD to an amount which is less than that permitted under the Fiscal Agent Agreement; or (5) to modify, alter, amend or supplement the Fiscal Agent Agreement in any other respect which is not materially adverse to the Bondowners. Events of Default. Any one or more of the following events shall constitute an "event of default ": (a) Default in the due and punctual payment of the principal of or redemption premium, if any, on any Bond when and as the same shall become due 'and payable, whether at maturity as therein expressed, by declaration or otherwise; (b) Default in the due and punctual payment of the interest on any Bond when and as the same shall become due and payable; or (c) Except as described in (a) or (b), default shall be made by the CFD in the observance of any of the agreements, conditions or covenants on its part contained in the Fiscal Agent Agreement or the Bonds, and such default shall have continued for a period of 30 days after the CFD shall have been given notice in writing of such default by the Fiscal Agent or the Owners of 25% in aggregate principal amount of the Outstanding Bonds. The CFD agrees to give notice to the Fiscal Agent immediately upon the occurrence of an event of default under (a) or (b) above and within 30 days of the CFD's knowledge of an event of default under (c) above. The Fiscal Agent shall not be deemed to have knowledge of any event of default unless a responsible officer shall have actual knowledge thereof or the Fiscal Agent shall have received written notice at its Principal Office. Remedies of Owners. Following the occurrence of an event of default, any Owner shall have the right for the equal benefit and protection of all Owners similarly situated: (l) By mandamus or other suit or proceeding at law or in equity to enforce his rights against the CFD and any of the members, officers and employees of the CFD, and to compel the CFD or any such members, officers or employees to perform and carry out their duties under the Act and their agreements with the Owners as provided in the Fiscal Agent Agreement; (2) By suit in equity to enjoin any actions or things which are unlawful or violate the rights of the Owners; or (3) By a suit in equity to require the CFD and its members, officers and employees to account as the fiscal agent of an express trust. 55 F.'�,ENDA ITEM NO. PAGE 06 0 F Nothing in this Article or in any other provision of the Fiscal Agent Agreement or the Bonds shall affect or impair the obligation of the CFD, which is absolute and unconditional, to pay the interest on and principal of the Bonds to the respective Owners thereof at the respective dates of maturity, as provided in the Fiscal Agent Agreement, out of the Special Taxes and other amounts pledged for such payment, or affect or impair the right of action, which is also absolute and unconditional, of such Owners to institute suit to enforce such payment by virtue of the contract embodied in the Bonds and in the Fiscal Agent Agreement. A waiver of any default or breach of duty or contract by any Owner shall not affect any subsequent default or breach of duty or contract, or impair any rights or remedies on any such subsequent default or breach. No delay or omission by any Owner to exercise any right or power accruing upon any default shall impair any such right or power or shall be construed to be a waiver of any, such default or an acquiescence therein, and every power and remedy conferred upon the Owners by the Act or by this Article may be enforced and exercised from time to time and as often as shall be deemed expedient by the Owners. If any suit, action or proceeding to enforce any right or exercise any remedy is abandoned or determined adversely to the Owners, the CFD and the Owners shall be restored to their former positions, rights and remedies as if such suit, action or proceeding had not been brought or taken. No remedy in the Fiscal Agent Agreement conferred upon or reserved to the Owners is intended to be exclusive of any other remedy. Every such remedy shall be cumulative and shall be in addition to every other remedy given hereunder or now or hereafter existing, at law or in equity or by statute or otherwise, and may be exercised without exhausting and without regard to any other remedy conferred by the Act or any other law. eo—. In case the moneys held by the Fiscal Agent after an event of default shall be insufficient to pay in full the whole amount so owing and unpaid upon the Outstanding Bonds, then. all available amounts shall be applied to the payment of such principal and interest without preference or priority of principal over interest, or interest over principal, or of any installment of interest over any other installment of interest, ratably to the aggregate of such principal and interest. Defeasance. If the CFD shall pay or cause to be paid, or there shall otherwise be paid, to the Owner of an Outstanding Bond the interest due thereon and the principal thereof, at the times and in the manner stipulated in the Fiscal Agent Agreement or any Supplemental Fiscal Agent Agreement, then the Owner of such Bond shall cease to be entitled to the pledge of Special Taxes, and, other than as set forth below, all covenants, agreements and other obligations of the CFD to the Owner of such Bond under the Fiscal Agent Agreement shall thereupon cease, terminate and become void and be discharged and satisfied. In the event of a defeasance of all Outstanding Bonds, the Fiscal Agent shall execute and deliver to the CFD all such instruments as may be desirable to evidence such discharge and satisfaction, and the Fiscal Agent shall pay over or deliver to the CFD's general fund all money or securities held by it pursuant to the Fiscal Agent Agreement which are not required for the payment of the principal of, premium, if any, and interest due on such Bonds. Any Outstanding Bond shall be deemed to have been paid if such Bond is paid in any one or more of the following ways: (a) by paying or causing to be paid the principal of, premium, if any, and interest on such Bond, as and when the same become due and payable; (b) by depositing with the Fiscal Agent, in trust, at or before maturity, money which, together with the amounts then on deposit in the Special Tax Fund (exclusive of amounts transferr ed to the Administrative Expense Account) and available for such purpose, is fully sufficient to pay the principal ,O-., of, premium, if any, and interest on such Bond, as and when the same shall become due and payable; or 56 AGENDA ITEM tio . OFD PAGE (c) by depositing with the Fiscal Agent or another escrow bank appointed by the CFD, in trust, noncallable Defeasance Securities, in which the CFD may lawfully invest its money, in such amount *"00 as will be sufficient, together with the interest to accrue thereon and moneys then on deposit in the Special Tax Fund (exclusive of amounts transferred to the Administrative Expense Account) and available for such purpose, together with the interest to accrue thereon, to pay and discharge the principal of, premium, if any, and interest on such Bond, as and when the same shall become due and payable; then, at the election of the CFD, and notwithstanding that any Outstanding Bonds shall not have been surrendered for payment, all obligations of the CFD under the Fiscal Agent Agreement and any Supplemental Fiscal Agent Agreement with respect to such Bond shall cease and terminate, except for the obligation of the Fiscal Agent to pay or cause to be paid to the Owners of any such Bond not so surrendered and paid, all sums due thereon and except for the covenants of the CFD contained in the Fiscal Agent Agreement or any covenants in a Supplemental Fiscal Agent Agreement relating to compliance with the Code. Notice of such election shall be filed with the Fiscal Agent not less than ten days prior to the proposed defeasance date, or such shorter period of time as may be acceptable to the Fiscal Agent. In connection with a defeasance under (b) or (c) above, there shall be provided to the CFD a verification report from an independent nationally recognized certified public accountant stating its opinion as to the sufficiency of the moneys or securities deposited with the Fiscal Agent or the escrow bank to pay and discharge the principal of, premium, if any, and interest on all Outstanding Bonds to be defeased, as and when the same shall become due and payable, and an opinion of Bond Counsel (which may rely upon the opinion of the certified public accountant) to the effect that the Bonds being defeased have been legally defeased in accordance with the Fiscal Agent Agreement and any applicable Supplemental Fiscal Agent Agreement. If a forward supply contract is employed in connection with an advance refunding to be effected under (c) above, (i) such verification report shall expressly state that the adequacy of the amounts deposited with the bank under (c) above to accomplish the refunding relies solely on the initial escrowed investments and the maturity principal thereof and interest income thereon and does not assume performance under or compliance with the forward supply contract, and (ii) the applicable escrow agreement executed to effect an advance refunding in accordance with (c) above shall provide that, in the event of any discrepancy or difference between the terms of the forward supply contract and the escrow agreement, the terms of the escrow agreement shall be controlling. Upon a defeasance, the Fiscal Agent, upon request of the CFD, shall release the rights of the Owners of such Bonds which have been defeased under the Fiscal Agent Agreement and any Supplemental Fiscal Agent Agreement and execute and deliver to the CFD all such instruments as may be desirable to evidence such release, discharge and satisfaction. In the case of a defeasance hereunder of all Outstanding Bonds, the Fiscal Agent shall pay over or deliver to the CFD any funds held by the Fiscal Agent at the time of a defeasance, which are not required for the purpose of paying and discharging the principal of, premium, if any, or interest on the Bonds when due. The Fiscal Agent shall, at the written direction of the CFD, mail, first class, postage prepaid, a notice to the Bondowners whose Bonds have been defeased, in the form directed by the CFD, stating that the defeasance has occurred. 57 AGENDA ITEM N0. LACA PACE OF 2Z � FINANCIAL INFORMATION City Accounting Records and Financial Statements The financial transactions of the District are included in the City's annual audit pursuant to the requirements prescribed by the State Controller for special districts. Pursuant to the Fiscal Agent Agreement, the Fiscal Agent is required to keep proper books of record and accounts in which complete and correct entries are required to be made of all transactions relating to the proceeds of the Bonds, the Special Taxes received by the Fiscal Agent, all funds and accounts established pursuant to the Fiscal Agent Agreement, including the Costs of Issuance Fund, the Administrative Expense Fund and the Bond Fund. The District is required to keep proper books of record and accounts in which complete and correct entries shall be made of all transactions relating to the expenditure of amounts disbursed from the Special Tax Fund. Administration of the Special Tax The District is required each Fiscal Year to determine the amount of Special Taxes within the District needed to pay debt service on the Bonds and Administrative Expenses of the District related to the District (the "Special Tax Requirement"). The District is expected to incur Administrative Expenses within the District for the levy and collection of the Special Taxes, foreclosure proceedings, Fiscal Agent fees and arbitrage rebate calculations. The District is required to communicate with the County Auditor to ascertain the relevant parcels within the District on which the Special Taxes are to be levied, taking into account any parcel splits during.the preceding and then current Fiscal Year. The District is required by resolution to provide for the levy of the Special Taxes within the District in the then current Fiscal Year. A certified list of all parcels subject to the Special Tax, including the amount of the Special Tax to be levied on each such parcel, is filed by the District with the County Auditor on or before the tenth (10th) day of August of that tax year. The Special Taxes so levied may not exceed the authorized amounts as provided in the Rate and Method of Apportionment relating to the District (see "Rate and Method of Apportionment" below). The Special Taxes are payable and are collected in the same manner and at the same time and in the same installment as the general taxes on real property are payable and have the same priority, become delinquent at the same times and in the same proportionate amounts and bear the -same proportionate penalties and interest after delinquency as do the general taxes on real property. Special Taxes are due in two equal installments. Special Taxes levied become delinquent on the following December 10th and April 10th. Currently a 10% penalty is added to delinquent taxes. When received, the Special Taxes are required to be deposited in a separate Special Tax Fund for the District to be held by the City and transferred by the City to the Fiscal Agent as provided in the Fiscal Agent Agreement. As of the delivery date of the Bonds, the District has retained Harris & Associates to assist in the preparation of the Special Tax roll and the determination of the amount of Special Taxes required in each Fiscal Year. Rate and Method of Apportionment The District levies the Special Taxes in accordance with the Rate and Method of Apportionment (see "APPENDIX D - RATE AND METHOD OF APPORTIONMENT). Because the Special Taxes have been authorized by a two- thirds (2/3) vote of the qualified electorate within the District, the Special Taxes are a 58 AGENDA ITEM N0. C pAGE,k-'� OF� special tax imposed within the limitations of Section 4 of Article XIIIA of the State Constitution. The City Council, as the legislative body of the District, has the power and is obligated, pursuant to the covenants contained in the Fiscal Agent Agreement, to cause the levy and collection of the Special Taxes annually. The Rate and Method of Apportionment may be modified pursuant to the provisions of the Act provided that the District determines that such modification will not impair the timely payment of the Bonds. The District has covenanted that no modification of the maximum authorized Special Tax shall be approved which would prohibit the District from levying the Special Tax in any Fiscal Year at such a rate as could generate Maximum Special Tax Revenues in each Fiscal Year at least equal to 110% of annual debt service in such Fiscal Year. When a community facilities district is formed, a special tax may be levied on each parcel of taxable property within the community facilities district to pay for the construction, acquisition and rehabilitation of public facilities, to pay for authorized services or to repay bonded indebtedness or other related expenses incurred by the community facilities district. This special tax may be apportioned in any reasonable manner; however, the tax may not be apportioned on an ad valorem basis. Pursuant to Section 53325.3 of the Act, the tax imposed "is a Special Tax and not a special assessment, and there is no requirement that the tax be apportioned on the basis of benefit to any property." When more than one type of land use or houses of different sizes are present within a community facilities district, several criteria may be considered when apportioning the special tax. Generally, criteria are based on building square footage or residential floor area, acreage, and land use. Categories based on such criteria are established to differentiate between parcels of property. Specific special tax levels are assigned to each category, with all parcels within a category assigned the same special tax rate. In the District categories have been established for Developed Property, as shown in the Tables below. The Special Tax for a single family residential property will vary directly with the amount of residential floor area on each parcel. Assigned Special Tax Rates The Tables below show the Assigned Special Tax rates for fiscal year 2005/06 that are to be Ievied against Developed Property within the District. The Maximum Special Taxes for Developed Property cannot exceed the rates shown for fiscal year 2005/06, except when the Backup Special Tax is used as discussed below. The Assigned Special Taxes and Backup Special Taxes will increase at a rate of two percent per year. Each year, the District shall levy the Special Tax within the District, subject to the methodology and Maximum Special Taxes set forth in the Rate and Method of Apportionment, in an amount sufficient to meet the Special Tax Requirement. Backup Special Tax Pursuant to the Rate and Method of Apportionment, the Maximum Special Tax for Developed Property within the District is the greater of (i) the amount derived by application of the Assigned Special Tax or (ii) the amount derived by application of the Backup Special Tax. The Backup Special Tax will increase at a rate of two percent per year. Under certain circumstances, the Special Tax for some parcels classified as Developed Property will be increased above the Assigned Special Tax until the Special Tax Requirement is met. However, under no circumstances will the Special Tax on an Assessor's Parcel of Developed Property be increased above the greater of the Backup Special Tax or the applicable Assigned Special Tax. 59 AGENDA ITEM NO. PAAQ J 0 ,00-. The Assigned Special Tax Rates under the Rate and Method of Apportionment have been designed pursuant to City Policy not to exceed a total tax rate percentage of 2% when taking into account all taxes and assessments on property of all jurisdictions. The following tables shows the assumptions used in setting the Assigned Tax Rates and the effective tax rate within the District. 60 APENDA ITEM N0. PAGE .�OF IL N CN � a U V N s9 6`3 69 69 (wo9 69 69 69 69 �oq 69 69 O O O 1p O ~. 1(� O O O oo O M M t— a\ V N �D vl O N kr) tn N M % ed O 00 C N av 0 00 m 69 69 69 69 69 69 69 6s 69 69 69 69 rn %- y O O in O O V N p y O O M �,o O 't M N O �O O M C O O O M M 1� C\ y M 00 M O N M Obi N a v to � ^ N H "M 69 69 69 69 69 69 69 69 69 .69 69 69 1 V W •L � O y O O O O oo o0 \,D O 'ct M kn a\ N N O A m cl m � d' V M N M U w w 69 69 69 rf3 &9 69 69 69. 69 69 69 .) , 69 Q u cqs E E C y O O �O �O O � u o p 00 O O w) O M M 1` O\ ct N �O h b ° M M M in O V M a n v 69 69 69 69 69 69 69 69 69 69 69 69 �3 >r cu ti 7 o Q a r. (� o o U to Z o y 0 a A o 46 0 0 3 U -I 3 ¢ U cz o p V] 0 Y X ° o �• Q o .a o H x d h a. 3 3 Y, ¢ � x x x x z ¢ N Z U U U U ..rr w w cn Q (7wa AGENDA ITEM 140. pqriE.c2O-(p—o F� 7: U X ns C� H F^ a C ... cd U U U U ¢ � U Cd OJ CIS O cd b X z U O cd U cql O P4 [� X M H 64 Q U G bq Q 4-+ O U U 7: AGENDA ITEM NO. Q"j�,D,OF N U ns C� X cc1 F^ U CO C ... cd U U U U ¢ � U OJ CIS O cd b X z � � AGENDA ITEM NO. Q"j�,D,OF N Delinquencies and Foreclosure Actions No parcels within the District have experienced any delinquencies. The District has covenanted to initiate foreclosure action in the Superior Court against parcels with delinquent Special Taxes as provided in the Fiscal Agent Agreement. Foreclosure proceedings are directed by the District through a notification to foreclosure counsel as to the delinquent assessor parcel numbers for which foreclosure proceedings are to be initiated. The District first removes the delinquent Special Taxes from the County Tax Roll, as required by law. Foreclosure counsel then initiates a request for a title search to identify the current legal owner of a delinquent parcel. Foreclosure counsel also sends a written demand for payment to the owner shown on the Tax Roll, followed by the filing of a complaint with the Superior Court in Riverside County and recording a US pendens against the property at the office of the County Recorder. Each legal owner and all holders of any other interest in the land must file an answer to the complaint within 30 days following the completion of service of process on them. If no answer is filed with such 30 day period, foreclosure counsel files a request that a default judgment be entered by the Court. If any party files an answer, then the case must be litigated, and foreclosure counsel will typically file a motion for summary judgment. Following the entry of a judgment, whether by default or otherwise, against all defendants, foreclosure counsel requests a writ of sale from the Court for delivery to the Sheriff. The writ of sale is delivered to the Sheriff with instructions to execute on the delinquent parcel. Levy by the Sheriff consists of posting notice on the delinquent property, followed by mailing of notice to the last known address of the legal owner and publication of the notice of levy. Thereafter, the delinquent property owner is entitled to a redemption period of 120 days. Following such 120 day period, foreclosure proceedings can continue following the publication and mailing of a notice of sale of the delinquent parcel or parcels, which sale must be at least 20 days following such notice. The foreclosure process described above typically takes at least six months from the date on which a judgment is entered and can take substantially longer. 63 MENDA ITEM NO. PAGE,,, Y OF LEGAL MATTERS Enforceability of Remedies The remedies available to the Fiscal Agent and the Owners of the Bonds upon an event of default under the Fiscal Agent Agreement or any other document described herein are in many respects dependent upon regulatory and judicial actions which are often subject to discretion and delay. Under existing law and judicial decisions, the remedies provided for under such documents may not be readily available or may be limited. The various legal opinions to be delivered concurrently with the delivery of the Bonds will be qualified to the extent that the enforceability of certain legal rights related to the Fiscal Agent Agreement is subject to limitations imposed by bankruptcy, reorganization, insolvency or other similar laws affecting the rights of creditors generally and by equitable remedies and proceedings generally. Approval of Legal Proceedings Fulbright & Jaworski L.L.P., Los Angeles, California, as Bond Counsel, will render an opinion which states that the Fiscal Agent Agreement and the Bonds are valid and binding contracts of the City and are enforceable in accordance with their terms. Fulbright & Jaworski L.L.P. will render an opinion which states that the Fiscal Agent Agreement and the Bonds are valid and binding contracts of the District and are enforceable in accordance with their terms. The legal opinions of Bond Counsel will be subject to the effect of bankruptcy, insolvency, moratorium and other similar laws affecting creditors' rights and to the exercise of judicial discretion in accordance with general principles of equity. Bond Counsel undertakes no responsibility for the accuracy, completeness or fairness of this Official Statement. The City has no knowledge of any fact or other information which would indicate that the Fiscal Agent Agreement is not so enforceable against the District, except to the extent such enforcement is limited by principles of equity and by state and federal laws relating to bankruptcy, reorganization, moratorium or creditors' rights generally. Certain legal matters will be passed on for the City and the District by Van Blarcom Leibold, McClendon & Mann, P.C., Laguna Hills, California, as City Attorney. In addition, certain legal matters will be passed on by Fulbright & Jaworski, Los Angeles, California, Disclosure Counsel. Certain legal matters will be passed on for the Underwriter by McFarlin & Anderson LLP, Lake Forest, California, as Underwriter's Counsel. Fees payable to Bond Counsel, City Attorney, Disclosure Counsel and Underwriter's Counsel are contingent upon the sale and delivery of the Bonds. Tax Exemption The Internal Revenue Code of 1986 (the "Code ") imposes certain requirements that must be met subsequent to the issuance and delivery of the Bonds for interest thereon to be and remain excluded pursuant to section 103(a) of the Code from the gross income of the owners thereof for federal income tax purposes. Noncompliance with such requirements could cause the interest on the Bonds to be included in the gross income of the owners thereof for federal income tax purposes retroactive to the date of issuance of the Bonds. The District has covenanted to maintain the exclusion of the interest on the Bonds from the gross income of the owners thereof for federal income tax purposes. In the opinion of Fulbright & Jaworski L.L.P., Bond Counsel, under existing law interest on the Bonds is exempt from personal income taxes of the State of California and, assuming compliance with the aforementioned covenant, interest on the Bonds is excluded pursuant to section 103(a) of the Code from the gross income of the owners thereof for federal income tax purposes. Bond Counsel is also of the opinion that, assuming compliance with the aforementioned covenant, the Bonds are not "specified A10—` private activity bonds" within the meaning of section 57(a)(5) of the Code and, therefore, the interest on 64 AGENDA ITEM N0. RACE,�OF the Bonds will not be treated as an item of tax preference for purposes of computing the alternative minimum tax imposed by section 55 of the Code. The receipt or accrual of interest on the Bonds owned by a corporation may affect the computation of its alternative minimum taxable income, upon which the alternative minimum tax is imposed, to the extent that such interest is taken into account in determining the adjusted current earnings of that corporation (75 percent of the excess, if any, of such adjusted current earnings over the alternative minimum taxable income being an adjustment to alternative minimum taxable income (determined without regard to such adjustment or to the alternative tax net operating loss deduction)). To the extent that a purchaser of a Bond acquires that Bond at a price that exceeds the aggregate amount of payments (other than payments of qualified stated interest within the meaning of section 1.1273 -1 of the Treasury Regulations) to be made on the Bonds (determined, in the case of a callable Bond, under the assumption described below), such excess will constitute "bond premium" under the Code. Section 171 of the Code, and the Treasury Regulations promulgated thereunder, provide generally that bond premium on a tax- exempt obligation must be amortized on a constant yield, economic accrual, basis; the amount of premium so amortized will reduce the owner's basis in such obligation for federal income tax purposes, but such amortized premium will not be deductible for federal income tax purposes. In the case of a purchase of a Bond that is callable, the determination whether there is amortizable bond premium, and the computation of the accrual of that premium, must be made under the assumption that the Bond will be called on the redemption date that would minimize the purchaser's yield on the Bond (or that the Bond will not be called prior to maturity if that would minimize the purchaser's yield). The rate and timing of the amortization of the bond premium and the corresponding basis reduction may result in an owner realizing a taxable gain when a Bond owned by such owner is sold or disposed of for an amount equal to or in some circumstances even less than the original cost of the Bond to the owner. The excess, if any, of the stated redemption price at maturity of Bonds of a maturity over the initial offering price to the public of the Bonds of that maturity set forth on the cover of this Official Statement is "original issue discount" under the Code. Such original issue discount accruing on a Bond is treated as interest excluded from the gross income of the owner thereof for federal income tax purposes and exempt from California personal income tax to the same extent as would be stated interest on the Bond. Original issue discount on any Bond purchased at such initial offering price and pursuant to such initial offering will accrue on a semiannual basis over the term of the Bond on the basis of a constant yield method and, within each semiannual period, will accrue on a ratable daily basis. The amount of original issue discount on such a Bond accruing during each period is added to the adjusted basis of such Bond to determine taxable gain upon disposition (including sale, redemption or payment on maturity) of such Bond. The Code includes certain provisions relating to the accrual of original issue discount in the case of purchasers of Bonds who purchase such Bonds other than at the initial offering price and pursuant to the initial offering. Any person considering purchasing a Bond at a price that includes bond premium should consult his or her own tax advisors with respect to the amortization and treatment of such bond premium, including, but not limited to, the calculation of gain or loss upon the sale, redemption or other disposition of the Bond. Any person considering purchasing a Bond of a maturity having original issue discount should consult his or her own tax advisors with respect to the tax consequences of ownership of Bonds with original issue discount, including the treatment of purchasers who do not purchase in the original offering and at the original offering price, the allowance of a deduction for any loss on a sale or other disposition, and the treatment of accrued original issue discount on such Bonds under federal individual and corporate alternative minimum taxes. Bond Counsel has not undertaken to advise in the future whether any events after the date of issuance of the Bonds may affect the tax status of interest on the Bonds or the tax consequences of the ownership of the Bonds. No assurance can be given that future legislation, or amendments to the Code, if enacted into law, will not contain provisions that could directly or indirectly reduce the benefit of the exemption of interest on the Bonds from personal income taxation by the State of California or of the exclusion of the interest on the Bonds from the gross income of the owners thereof for federal income tax purposes. Furthermore, Bond Counsel expresses no opinion as to any federal, state or local tax law consequences 65 AGENDA ITEM N0. LIP PAGE, /��- .OF with respect to the Bonds, or the interest thereon, if any action is taken with respect to the Bonds or the proceeds thereof predicated or permitted upon the advice or approval of bond counsel if such advice or approval is given by counsel other than Bond Counsel. Although Bond Counsel is of the opinion that interest on the Bonds is exempt from state personal income tax and excluded from the gross income of the owners thereof for federal income tax purposes, an owner's federal, state or local tax liability may be otherwise affected by the ownership or disposition of the Bonds. The nature and extent of these other tax consequences will depend upon the owner's other items of income or deduction. Without limiting the generality of the foregoing, prospective purchasers of the Bonds should be aware that (i) section 265 of the Code denies a deduction for interest on indebtedness incurred or continued to purchase or carry the Bonds or, in the case of a financial institution, that portion of an owner's interest expense allocated to interest on the Bonds, (ii) with respect to insurance companies subject to the tax imposed by section 831 of the Code, section 832(b)(5)(13)(i) reduces the deduction for loss reserves by 15 percent of the sum of certain items, including interest on the Bonds, (iii) interest on the Bonds earned by certain foreign corporations doing business in the United States could be subject to a branch profits tax imposed by section 884 of the Code, (iv) passive investment income, including interest on the Bonds, may be subject to federal income taxation under section 1375 of the Code for Subchapter S corporations that have Subchapter C earnings and profits at the close of the taxable year if greater than 25% of the gross receipts of such Subchapter S corporation is passive investment income, (v) section 86 of the Code requires recipients of certain Social Security and certain Railroad Retirement benefits to take into account, in determining the taxability of such benefits, receipts or accruals of interest on the Bonds and (vi) under section 32(i) of the Code, receipt of investment income, including interest on the Bonds, may disqualify the recipient thereof from obtaining the earned income credit. Bond Counsel has expressed no opinion regarding any such other tax consequences. Bond Counsel's opinion is not a guarantee of a result, but represents their legal judgment based upon their review of existing statutes, regulations, published rulings and court decisions and the covenants of the n District described above. No ruling has been sought from the Internal Revenue Service (the "Service ") with respect to the matters addressed in the opinion of Bond Counsel, and Bond Counsel's opinion is not binding on the Service. The Service has an ongoing program of auditing the tax - exempt status of the interest on municipal obligations. If an audit of the Bonds is commenced, under current procedures the Service is likely to treat the District as the "taxpayer," and the owners would have no right to participate in the audit process. In responding to or defending an audit of the tax - exempt status of the interest on the Bonds, the District may have different or conflicting interests from the owners of the Bonds. Public awareness of any future audit of the Bonds could adversely affect the value and liquidity of the Bonds during the pendency of the audit, regardless of the ultimate outcome. Absence of Litigation The City will furnish a certificate dated as of the date of delivery of the Bonds that there is not now known to be pending or threatened any litigation restraining or enjoining the execution or delivery of the Fiscal Agent Agreement or the sale or delivery of the Bonds or in any manner questioning the proceedings and authority under which the Fiscal Agent Agreement is to be executed or delivered or the Bonds are to be delivered or affecting the validity thereof. 66 AGENDA ITEM NO. PAGE�OF 22� CONCLUDING INFORMATION No Rating on the Bonds The District has not made, and does not contemplate making, any application for a rating on the Bonds. No such rating should be assumed based upon any other City rating that may be obtained. Prospective purchasers of the Bonds are required to make independent determinations as to the credit quality of the Bonds and their appropriateness as an investment. Should a Bondowner elect to sell a Bond prior to maturity, no representations or assurances can be made that a market will have been established or maintained for the purchase and sale of the Bonds. The Underwriter assumes no obligation to establish or maintain such a market and is not obligated to repurchase any of the Bonds at the request of the owner thereof. Underwriting Southwest Securities, Inc., Newport Beach, California (the "Underwriter ") is offering the Bonds at the prices set forth on the cover page hereof. The initial offering prices may be changed from time to time and concessions from the offering prices may be allowed to dealers, banks and others. The Underwriter has agreed to purchase the Bonds at a price equal to approximately % ($) of the aggregate principal amount of the Bonds, which amount represents the principal amount of the Bonds, less the Underwriter's discount of $ and an Original Issue Discount of $ The Underwriter will pay certain of its expenses relating to the offering. Experts The Market Absorption Study prepared by Empire Economics, Inc., Capistrano Beach, California, and the Appraisal prepared by Harris Realty Appraisal, Newport Beach, California, as well as the Special Tax projections prepared by Harris & Associates, Irvine, California, Special Tax Consultant, have been included in this Official Statement in reliance on and upon the authority of said firms as experts in the matters covered therein. The Financing Consultant The material contained in this Official Statement was prepared by Rod Gunn Associates, Inc., Huntington Beach, California, an independent financial consulting firm, who advised the City as to the financial structure and certain other financial matters relating to the Bonds. The information set forth herein has been obtained by Rod Gunn Associates, Inc. from sources which are believed to be reliable, but such information is not guaranteed by Rod Gunn Associates, Inc. as to accuracy or completeness, nor has it been independently verified. Fees paid to Rod Gunn Associates, Inc. are contingent upon the sale and delivery of the Bonds. Additional Information The summaries and references contained herein with respect to the Fiscal Agent Agreement, the Bonds, statutes and other documents, do not purport to be comprehensive or definitive and are qualified by reference to each such document or statute and references to the Bonds are qualified in their entirety by reference to the form hereof included in the Fiscal Agent Agreement. Definitions of certain terms used herein are set forth in "APPENDIX A- Definitions of Certain Terms Used In the Fiscal Agent Agreement ". Copies of the Fiscal Agent Agreement are available for inspection during the period of initial offering on the Bonds at the offices of the Financing Consultant, Rod Gunn Associates, Inc., 16371 Gothard Street, Suite A, Huntington Beach, California 92647 -3652, telephone (714) 841 -3993 or the Underwriter, Southwest Securities, 620 Newport Center Drive, Suite 300, Newport Beach, California 92660, telephone (949) 717- 67 14 d AGENDA ITEM NO pACEa -, OF,� AO-1- 2000. Copies of these documents may be obtained after delivery of the Bonds from the City through the City Manager, City of Lake Elsinore, 130 S. Main Street, Lake Elsinore, California 92530. ,*--- References Any statements in this Official Statement involving matters of opinion, whether or not expressly so stated, are intended as such and not as representations of fact. This Official Statement is not to be construed as a contract or agreement between the City and the purchasers or Owners of any of the Bonds. Execution The execution of this Official Statement by the City Manager has been duly authorized by the City of Lake Elsinore. CITY OF LAKE ELSINORE By: /s/ City Manager of the City, Acting on behalf of Community Facilities District No. 2005 -1 (Serenity) 68 AGENDA ITEM N0. PAGEO / 7 F Z� APPENDIX A DEFINITIONS OF CERTAIN TERMS USED IN THE FISCAL � AGENT AGREEMENT Unless otherwise defined in this Official Statement, the following terms have the following meanings. "Act" means the Mello -Roos Community Facilities Act of 1982, as amended, Sections 53311 et seq. of the California Government Code. "Administrative Expenses" means the administrative costs with respect to the calculation and collection of the Special Taxes, including all attorneys' fees and other costs related thereto, the fees and expenses of the Fiscal Agent, any fees for credit enhancement for the Bonds which are not otherwise paid as Costs of Issuance, any costs related to the CFD's compliance with State and federal laws requiring continuing disclosure of information concerning the Bonds and the CFD, and any other costs otherwise incurred by the City's staff on behalf of the CFD in order to carry out the purposes of the CFD as set forth in the Resolution of Formation and any obligation of the CFD hereunder. "Annual Debt Service" means the principal amount of any Outstanding Bonds payable in a Bond Year either at maturity or pursuant to a Sinking Fund Payment and any interest payable on any Outstanding Bonds in such Bond Year, if the Bonds are retired as scheduled. "Authorized Investments" means any of the following which at the time of investment are legal investments under the laws of the State for the moneys proposed to be invested therein: (1) Direct obligations of the United States of America (including obligations issued or held in book - entry form on the books of the Department of the Treasury, and CATS and TIGRS) or obligations the principal of and interest on which are unconditionally guaranteed by the United States of America ( "Direct Obligations "). -.mole (2) Bonds, debentures, notes or other evidence of indebtedness issued or guaranteed by any of the following federal agencies and provided such obligations are backed by the full faith and credit of the United States of America (stripped securities are only permitted if they have been stripped by the agency itself): U.S. Export-Import Bank ( "Eximbank ") Direct obligations or fully guaranteed certificates of beneficial ownership Farmers Home Administration ( "FmHA ") Certificates of beneficial ownership Federal Financing Bank Federal Housing Administration Debentures ( "FHA ") General Services Administration Participation certificates Government National Mortgage Association ( "GNMA" or "Ginnie Mae ") GNMA - guaranteed mortgage- backed bonds GNMA - guaranteed pass - through obligations U.S. Maritime Administration Guaranteed Title XI financing U.S. Department of Housing and Urban Development (HUD) ►IIJ AGENDA ITEM 140. PAGE jt OF_2 '"./ Project Notes Local Authority Bonds New Communities Debentures - U.S. government guaranteed debentures U.S. Public Housing Notes and Bonds - U.S. government guaranteed public housing notes and bonds (3) Bonds, debentures, notes or other evidence of indebtedness issued or guaranteed by any of the following non -full faith -and credit U.S. government agencies (stripped securities are only permitted if they have been stripped by the agency itself. Federal Home Loan Bank System Senior debt obligations Federal Home Loan Mortgage Corporation ( "FHLMC" or "Freddie Mac ") Participation certificates Senior debt obligations Federal National Mortgage Association ( "FNMA" or "Fannie Mae ") Mortgage- backed securities and senior debt obligations Student Loan Marketing Association ( "SLMA" or "Sallie Mae ") Senior debt obligations Resolution Funding _Corp( "REFCORP ") obligations Farm Credit System CM - Consolidated system -wide bonds and notes (4) Money market funds registered under the Federal Investment Company Act of 1940,. whose shares are registered under the Securities Act of 1933, and having a rating by Standard & Poor's of AAAm -G, AAAm or AAm, and, if rated by Moody's, rated Aaa, Aal or Aa2 (including those of the Fiscal Agent and its affiliates). (5) Certificates of deposit secured at all times by collateral described in (1) and/or (2) above. Such certificates must be issued by commercial banks, savings and loan associations or mutual savings banks. The collateral must be held by a third party and the Bondholders must have a perfected first security interest in the collateral. (6) Certificates of deposit, savings accounts, deposit accounts or money market deposits which are fully insured by FDIC or which are with a bank rated AA or better by Standard & Poor's and Aa or better by Moody's (including those of the Fiscal Agent and its affiliates). (7) Investment Agreements with any corporation, including banking or financial institutions, provided that (a) the long -term debt of the provider of any such investment agreement is rated, at the time of investment, at least "AA" and "Aa" by the Rating Agency (without regard to gradations of plus or minus within such category), and (b) any such investment agreement is collateralized with United States Treasury or agency obligations which at least equal 102% of the principal amount invested thereunder, and (c) any such agreement shall include a provision to the effect that, in the event the long -term debt rating of the provider of such agreement is downgraded below "AA-" or below "Aa" by the applicable Rating Agency, the CFD has the right to withdraw or cause the Fiscal Agent to withdraw all funds invested in such agreement and thereafter to invest such funds pursuant to the Fiscal Agent Agreement. (8) Commercial paper rated, at the time of purchase, "Prime - 1" by Moody's and "A -1" or better by Standard & Poor's. A -2 AGENDA ITEM N0. pAGE 2L5 OF _ (9) Bonds or notes issued by any state or municipality which are rated by Moody's and Standard & Poor's in one of the two highest rating categories assigned by such agencies. (10) Federal funds or bankers acceptances with a maximum term of one year of any bank which has an unsecured, uninsured or unguaranteed obligation rating of "Prime - l" or "A3" or better by Moody's and "A- I" or "A" or better by Standard & Poor's. (11) Repurchase agreements collateralized by Direct Obligations, GNMAs, FNMAs or FHLMCs with any registered broker /dealer subject to the Securities Investors' Protection Corporation jurisdiction or any commercial bank insured by the FDIC, if such broker /dealer or bank has an uninsured, unsecured and unguaranteed obligation rated "P - I" or "A3" or better by Moody's, and "A -I" or "A -" by Standard & Poor's; provided: (a) a master repurchase agreement or specific written repurchase agreement governs the transaction; and (b) the securities are held free and clear of any lien by the Fiscal Agent or an independent third party acting solely as agent ( "Agent ") for the Fiscal Agent, and such third party is (i) a Federal Reserve Bank, (ii) a bank which is a member of the Federal Deposit Insurance Corporation and which has combined capital, surplus and undivided profits of not less than $50 million, or (iii) a bank approved in writing for such purpose by Financial Guaranty Insurance Company, and the Fiscal Agent shall have received written confirmation from such third party that it holds such securities, free and clear of any lien, as agent for the Fiscal Agent; and (c) a perfected first security interest under the Uniform Commercial Code, or book entry procedures prescribed at 31 C.F.R. 306.1 et seq. or 31 C.F.R. 350.0 et seq. in such securities is created for the benefit of the Fiscal Agent; and (d) the repurchase agreement has a term of 180 days or less, and the Fiscal Agent or the Agent will value the collateral securities no less frequently than weekly and will liquidate the collateral securities if any deficiency in the required collateral percentage is not restored within two business days of such valuation; and (e) the fair market value of the securities in relation to the amount of the repurchase obligation, including principal and interest, is equal to at least 103% (12) Local Agency Investment Fund ( "LAIF ") of the State of California. (13) Any other investment which the CFD is permitted by law to make. "Authorized Representative of the CFD" means the Mayor, City Manager, Administrative Services Director, or any other person or persons designated by the Council and authorized to act on behalf of the CFD by a written certificate signed on behalf of the CFD by the Mayor or the City Manager and containing the specimen signature of each such person. "Bond Counsel" means an attorney at law or a firm of attorneys selected by the CFD of nationally recognized standing in matters pertaining to the tax- exempt nature of interest on bonds issued by states and their political subdivisions duly admitted to the practice of law before the highest court of any state of the United States of America or the District of Columbia. "Bond Register" means the books which the Fiscal Agent shall keep or cause to be kept on which the registration and transfer of the Bonds shall be recorded. "Bondowner" or "Owner" means the person or persons in whose name or names any Bond is registered. "Bond Year" means the twelve month period commencing on September 2 of each year and ending on September I of the following year, except that the first Bond Year for the Bonds shall begin on the Delivery Date and end of the first September I which is not more than 12 months after the Delivery Date. 114+ A -3 AGENDA ITEM NO. FAa 5 /C OF,� "Business Day" means a day which is not a Saturday or Sunday or a day of the year on which banks in New York, New York, Los Angeles, California, or the city where the corporate trust office of the Fiscal Agent is located, are not required or authorized to remain closed. "Certificate of Authorized Representative of the CFD" means a written certificate or warrant request executed by an Authorized Representative of the CFD. "CFD" means the City of Lake Elsinore Community Facilities District No. 2005 -1 (Serenity) established pursuant to the Act and the Resolution of Formation. "Code" means the Internal Revenue Code of 1986 and any Regulations, rulings, judicial decisions, and notices, announcements, and other releases of the United States Treasury Department or Internal Revenue Service interpreting and construing it. "Costs of Issuance" means the costs and expenses incurred in connection with the issuance and sale of the Bonds, including the acceptance and initial annual fees and expenses of the Fiscal Agent and its counsel, legal fees and expenses, costs of printing the Bonds and the preliminary and final official statements for the Bonds, fees of financial consultants and all other related fees and expenses, as set forth in a Certificate of Authorized Representative of the CFD. "Council" means the City Council of the City of Lake Elsinore. "Defeasance Securities" means any of the following: (a) Cash (b) United States Treasury Certificates, Notes and Bonds (including State and Local Government Series -- "SLGS ") (c) Direct obligations of the U.S. Treasury which have been stripped by the U.S. Treasury itself, e.g., CATS, TIGRS and similar securities. (d) The interest component of Resolution Funding Corp. strips which have been stripped by request to the Federal Reserve Bank of New York and are in book -entry form. (e) Pre - refunded municipal bonds rated "Aaa" by Moody's and "AAA" by Standard & Poor's. (f) Obligations issued by the following agencies which are backed by the full faith and credit of the United States: U.S. Export-Import Bank - direct obligations or fully guaranteed certificates of beneficial ownership Farmers Home Administration - certificates of beneficial ownership Federal Financing Bank General Services Administration - participation certificates U.S. Maritime Administration - guaranteed Title XI financing U.S. Department of Housing and Urban Development (HUD) - Project Notes, Local Authority Bonds, New Communities Debentures - U.S. government guaranteed debentures, U.S. Public Housing Notes and Bonds - U.S. government guaranteed public housing notes and bonds. "Delivery Date" means, with respect to the Bonds, the date on which the bonds of such issue were issued and delivered to the initial purchasers thereof. /^ "Depository" shall mean The Depository Trust Company, New York, New York, and its successors and assigns as securities depository for the Certificates, or any other securities depository acting as Depository under Article II hereof. A -4 ArENDA ITEM N0._ P��OF� "Fiscal Agent" means Union Bank of California, N.A., a national banking association duly organized and existing under and by virtue of the laws of the United States of America, at its principal corporate trust office in Los Angeles, California, and its successors or assigns, or any other bank or trust company which may at 14400* any time be substituted in its place as provided in the Fiscal Agent Agreement and any successor thereto. "Fiscal Agent Agreement" means the Fiscal Agent Agreement, together with any Supplemental Fiscal Agent Agreement approved pursuant to the Fiscal Agent Agreement. "Fiscal Year" means the period beginning on July l of each year and ending on the next following June 30. "Independent Financial Consultant" means a financial consultant or special tax consultant or firm of either such consultants generally recognized to be well qualified in the financial consulting or special tax consulting field, appointed and paid by the CFD, who, or each of whom: (1) is, in fact, independent and not under the domination of the CFD; (2) does not have any substantial interest, direct or indirect, in the CFD; and (3) is not connected with the CFD as a member, officer or employee of the CFD, but who may be regularly retained to make annual or other reports to the CFD. "Interest Payment Date" means each March I and September 1, commencing September 1, 2006, provided, however, that, if any such day is not a Business Day; interest up to the Interest Payment Date will be paid on the Business Day next preceding such date. "Investment Agreement" means one or more agreements for the investment of funds of the CFD complying with the criteria therefor as set forth in Subsection (7) of the definition of Authorized Investments. "Maximum Annual Debt Service" means the maximum sum obtained for any Bond Year prior to the final maturity of the Bonds by adding the following for each Bond Year: (1) the principal amount of all Outstanding Bonds payable in such Bond Year either at maturity or pursuant to a Sinking Fund Payment; and (2) the interest payable on the aggregate principal amount of all Bonds Outstanding in such Bond Year if the Bonds are retired as scheduled. " Moody's" means Moody's Investors Service, its successors and assigns "Nominee" shall mean the nominee of the Depository, which may be the Depository, as determined from time to time pursuant to the Fiscal Agent Agreement. "Outstanding" or "Outstanding Bonds" means all Bonds theretofore issued by the CFD, except: (1) Bonds theretofore cancelled or surrendered for cancellation in accordance with the Fiscal Agent Agreement; (2) Bonds for payment or redemption of which monies shall have been theretofore deposited in trust (whether upon or prior to the maturity or the redemption date of such Bonds), provided that, if such Bonds are to be redeemed prior to the maturity thereof, notice of such redemption shall have been given as provided in the Fiscal Agent Agreement; and (3) Bonds which have been surrendered to the Fiscal Agent for transfer or exchange pursuant to the Fiscal Agent Agreement or for which a replacement has been issued pursuant to the Fiscal Agent Agreement. "Participants" shall mean those broker - dealers, banks and other financial institutions from time to time for which the Depository holds Bonds as securities depository. "Person" means natural persons, firms, corporations, partnerships, associations, trusts, public bodies and other entities. Ln A -5 AGENDA ITEM NO. PACCU Y OF,,�� "Principal Office of the Fiscal Agent" means the office of the Fiscal Agent located in Los Angeles, California or such other office or offices as the Fiscal Agent may designate from time to time, or the office of any successor Fiscal Agent where it principally conducts its business of serving as Fiscal Agent under indentures pursuant to which municipal or governmental obligations are issued. "Project" means those public facilities described in the Resolution of Formation which are to be acquired or constructed within The District, including all engineering, planning and design services and other incidental expenses related to such facilities and other facilities, if any, authorized by the qualified electors within the CFD from time to time. "Project Costs" means the amounts necessary to finance the Project, to create and replenish any necessary reserve funds, to pay the initial and annual costs associated with the Bonds, including, but not limited to, remarketing, credit enhancement, Fiscal Agent and other fees and expenses relating to the issuance of the Bonds and the formation of the CFD, and to pay any other "incidental expenses" of the CFD, as such term is defined in the Act. "Rating Agency" means Moody's and Standard & Poor's, or both, as the context requires. "Record Date" means the fifteenth day of the month preceding an Interest Payment Date, regardless of whether such day is a Business Day. "Regulations" means the regulations adopted or proposed by the Department of Treasury from time to time with respect to obligations issued pursuant to section 103 of the Code. "Reserve Requirement" means, as of any date of calculation, an amount equal to the lowest of (1) 10% of the issue price (as defined pursuant to section 148 of the code), or (2) Maximum Annual Debt Service, or (3) 125% of the average Annual Debt Service of the Outstanding Bonds. "Resolution of Formation" means Resolution No. 2005 -10 adopted by the Council on January 25, 2005 pursuant to which the Council formed the CFD. "Sinking Fund Payment" means the annual payment to be deposited in the Redemption Account to redeem a portion of the Term Bonds in accordance with the schedule set forth in the Fiscal Agent Agreement. "Special Taxes" means the taxes authorized to be levied by the CFD on parcels within The District in accordance with the Resolution of Formation, the Act and the voter approval obtained at the January 25, 2005 election in the District and any additional special taxes authorized to be levied by the CFD from time to time which are pledged by the CFD to the repayment of the Bonds, together with the prepayment thereof and proceeds collected from the sale of property pursuant to the foreclosure provisions of the Fiscal Agent Agreement for the, delinquency of such Special Taxes remaining after the payment of all the costs related to such foreclosure actions, including, but not limited to, all legal fees and expenses, court costs, consultant and title insurance fees and expenses. "Standard & Poor's" means Standard & Poor's, a division of McGraw -Hill, its successors and assigns. "Supplemental Fiscal Agent Agreement" means any supplemental fiscal agent agreement amending or supplementing the Fiscal Agent Agreement. "Tax Certificate" means the certificate by that name to be executed by the CFD on a Delivery Date to establish certain facts and expectations and which contains certain covenants relevant to compliance with the Code. "Term Bonds" means the Bonds maturing on September 1, 2036. "Underwriter" means the institution or institutions, if any, with whom the CFD enters into a purchase contract for the sale of the Bonds. A -6 AGENDA ITEM N0. LP PACE,JL1_OF "Written Request of the CFD" means a request in writing executed by the Mayor, City Manager, City Treasurer, or written designee, on behalf of the CFD. A -7 AGENDA ITEM N0. PACE 0 APPENDIX B MARKET ABSORPTION STUDY B -1 AGENDA ITEM NO.-L--F] PAGE,_OF APPENDIX C APPRAISAL REPORT ..r C -1 MENDA ITEM N0. PAGE. -OF APPENDIX D RATE AND METHOD OF APPORTIONMENT D -1 AGENDA ITEM NO `�9 . PACIi APPENDIX E FORMS OF CONTINUING DISCLOSURE AGREEMENTS AGENDA ITEM NO. PACE OF APPENDIX F PROPOSED FORM OF BOND COUNSEL OPINION City of Lake Elsinore 130 S. Main Street Lake Elsinore, California 92530 City of Lake Elsinore Community Facilities District No. 2005 -1 (Serenity)) Special Tax Bonds, 2006 Series A Members of the City Council: We have acted as bond counsel to the City of Lake Elsinore (the "City ") in connection with the issuance of the $ aggregate principal amount of City of Lake Elsinore Community Facilities District No. 2005 -1 (Serenity) Special Tax Bonds, 2006 Series A (the "Bonds "), pursuant to the provisions of Mello -Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, Part 1, Division 2, Title 5, or the Government Code of the State of California (the "Act') and pursuant to a Fiscal Agent Agreement, 101� dated as of February 1, 2006 (the "Fiscal Agent Agreement'), by and between the City of Lake Elsinore Community Facilities District No. 2005 -1 (Serenity) (the "District') and Union Bank of California, N.A., as fiscal agent (the "Fiscal Agent'). We have examined the Act and such certified proceedings and other papers as we deem necessary to render this opinion. As to questions of fact material to our opinion, we have relied upon representations of the District contained in the Fiscal Agent Agreement and in the certified proceedings and certifications of public officials and others furnished to us, without undertaking to verify the same by independent investigation. Based upon the foregoing we are of the opinion, under existing law, as follows: 1. The Fiscal Agent Agreement has been duly and validly authorized, executed and delivered by the District and, assuming such Fiscal Agent Agreement constitutes the legally valid and binding obligation of the Fiscal Agent, constitutes the legally valid and binding obligation of the District enforceable against the District in accordance with its terms. 2. The Bonds constitute valid and binding limited obligations of the District as provided in the Fiscal Agent Agreement, and are entitled to the benefits of the Fiscal Agent Agreement. The Bonds are secured by a valid pledge of the Special Taxes (as defined in the Fiscal Agent Agreement) and all moneys in the funds and accounts under the Fiscal Agent Agreement, including all amounts derived from the investment of such moneys, subject to the application thereof on the terms and conditions as set forth in the Fiscal Agent Agreement. 4.The Internal Revenue Code of 1986, as amended (the "Code ") sets forth certain requirements that must be met subsequent to the issuance and delivery of the Bonds for AO-1- interest thereon to be and remain excluded from the gross income of the owners thereof F -I AGENDA ITEM N0. PAGEI OF for federal income tax purposes. Noncompliance with such requirements could cause the interest on the Bonds to be included in gross income retroactive to the date of issue of the Bonds. The District has covenanted in the Fiscal Agent Agreement to maintain the exclusion of interest on the Bonds from the gross income of the owners thereof for federal income tax purposes. In our opinion, under existing law, interest on the Bonds is exempt from personal income taxation of the State of California and, assuming compliance with the aforementioned covenant, interest on the Bonds is excluded pursuant to section I03(a) of the Code from the gross income of the owners thereof for federal income tax purposes. We are further of the opinion that under existing statutes, regulations, rulings and court decisions, the Bonds are not "specified private activity bonds" within the meaning of section 57(a)(5) of the Code and, therefore, the interest on the Bonds will not be treated as an item of tax preference for purposes of computing the alternative minimum tax imposed by section 55 of the Code. The receipt or accrual of interest on Bonds owned by a corporation may affect the computation of the alternative minimum taxable income, upon which the alternative minimum tax is imposed, to the extent that such interest is taken into account in determining the adjusted current earnings of that corporation (75 percent of the excess, if any, of such adjusted current earnings over the alternative minimum taxable income being an adjustment to alternative minimum taxable income (determined without regard to such adjustment or to the alternative tax net operating loss deduction)). Except as stated in the preceding two paragraphs, we express no opinion as to any federal or state tax consequences of the ownership or disposition of the Bonds. Furthermore, we express no opinion as to any federal, state or local tax law consequences with respect to the Bonds, or the interest thereon, if any- action is taken with respect to the Bonds or the proceeds thereof predicated or permitted upon the advice or approval of other bond counsel. No opinion is expressed herein on the accuracy, completeness or sufficiency of the Official Statement or other offering materials relating to the Bonds. The rights of the owners of the Bonds and the enforceability of the Bonds and the Fiscal Agent Agreement may be subject to bankruptcy, insolvency, reorganization, moratorium and other similar laws affecting creditors' rights heretofore or hereafter enacted and may also be subject to the exercise of judicial discretion in appropriate cases. Our opinions are based on existing law; which is subject to change. Such opinions are further based on our knowledge of facts as of the date hereof. We assume no duty to update or supplement our opinions to reflect any facts or circumstances that may thereafter come to our attention or to reflect any changes in any law that may thereafter occur or become effective. Moreover, our opinions are not a guarantee of result and are not binding on the Internal Revenue Service; rather, such opinions represent our legal judgment based upon our review of existing law that we deem relevant to such opinions and in reliance upon the representations and covenants referenced above. Respectfully submitted, F -2 AGENDA ITEM N0. PACE) OF,.2 znz