HomeMy WebLinkAbout11/08/2005 CC Reports
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CITY COUNCIL AGENDA
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ROBERT E. "BOB" MAGEE, MAYOR
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ROBERT L. SCHIFFNER, MA YOR PRO TEM
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THOMAS BUCKLEY, COUNCILMAN
DARYL HICKMAN,:COUNCILMAN
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GENIE KELLEY, C0UNCILWOMAN
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ROBERT A. BRADY, CITY MANAGER LAKE ELSINORE, CA 92530
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I TUESDAY, NOVEMBER 8,2005 -7:00 P.M.
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If you are at~ending this City Council Meeting please park in the Parking
Lot across the street from the Cultural Center. This will assist us in
limiting the irpact of meetings on the Downtown Business District. Thank
youfor your cooperation!
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CALL TO ORDER
CITY OF LAKE ELSINORE
WWW.LAKE-ELSINORE.ORG
(951) 674-3124 PHONE
(951) 674-2392 FAX
LAKE ELSINORECUL TURAL CENTER
183 NORTH MAIN STREET
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MOMENT OF SILENT PRAYER
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ROLL CALJ
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CLOSED SESSION
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~UBLIC EMPLOYEE - POTENTIAL DISCIPLINE/
DISMISSAL/RELEASE (Gov't Code S 54957).
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PRESENT A nONS/CEREMONIALS
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Proclamation- Lung Cancer Awareness Mont
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Procla~ation - Veterans Day
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PLEDGE
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PAGE TWO - CITY COUNCIL AGENDA--'NQVEMBER8, 2005
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Certificate of Recognition "':'Autliorsof:'Images ofAffierica-,L;:tke
Elsinore' . .. ,'. . . . . ..
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D. Presentation - Chamber of Commerce update
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PUBLIC COMMENTS- NON-AGENDIZEDrFEMS - 1 MiNUTE
(Please read & complete.a Speaker's FOrn1atiIl~poaium; prior totne Start Of .
the City Council Meeting) . . . . ..", .
PIJBtIC COMMENTS~;AGENDIZED I'f,EMS~..3;MINUTES. ,
'(Pleasereaq& complete a Speaker's Form at, the Podhim;prior to the Start .'
of the City Council Meeting. The Mayorwi1l9all on you to speak, when
your item is called.) , , .
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CONSENT CALENDAR ", " , " '.' ., ' . '; .' .
(All matters on the Consenteal6ndar are approvecfoppnemotiOll; uIilessa
Councilmemberor any meJnber of the publicrequests,separate a9tion ona ,
specific item.). . .' ,', ::, " .' . . .'.
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1; , Warrant List - October 31 ;2005 .
RECOMMENDATION:
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Ratify. '
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2. Authorization to prtlpare CEQAcoinpliance doc~ments for Specific
Plan 2005~Ol, z;oneChange 2005-0 l;ConpitionaI UsePeimit 2005:21;
Residential Design'Review 2005-12 and LEAP 2005_11, for Village at
Lakeshore(ClassicPacific). . " ,
RECOMMENDATION:
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Authorize Templeton Planning Group
to prepareCEQA compliaNce
documentS.
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PAGE THRl\;E - CITY COUNCIL AGENDA - NOVEMBER 8, 2005
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3.
Authorization to prepare CEQA compliance documents for Tentative
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Tract ~ap No. 25475, Tentative Tract Map No. 33725, Ramsgate
Specific Plan Amendment No.4 and General Plan Amendment No.
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2005-0fl. .
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RECOMMENDATION: Authorize Albert A. Webb Associates
to prepare CEQA compliance
documents.
4.
Amend~d Community Facilities District report for CFD No. 2005-2
(Alber~ill Ranch).
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RECOMMENDATION:
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Appro~al of Final Map No. 31531, a residential subdivision by D.R.
Horton iHomes, located approximately three-fourths of a mile southeast
of the ihtersection of Grape Street and Railroad Canyon Road.
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RECOMMENDATION:
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Approve..
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Approve Final Map.
Authorize City Clerk to accept all
dedications, sign the map and arrange
for recordation.
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Appro~al of Final Map No. 31532, a residential subdivision by DR
Horton Homes; located approximately one mile southeast of the
. intersedtion of Grape Street and Railroad Canyon Road.
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RECONfMENDA TION:
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Approve Final Map.
Authorize City Clerk to accept all
dedications, sign the map and arrange
for recordation.
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P AG~FOUR - CITY C()UNCIL.AGENDA":'N0VEMBER'8' 2005
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7. Agreement betweenCaltrans andtne City ()fLake Elsin<?r~forthe cost
.' of construction andmaint~nanceof the signaL at Rosetta Canyon,
TrellisLarie and'Arderiwood'Wayand State<Route74, . .
RECbMMENDAl'ION:' . Appro~e..' .
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RECOMMENDATION:.
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Approve: ..'
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9. Poe Street pavements rehabilitatioi1Chai1g'~6rd~~ N(). 1 ~Lindsay
. Street Repairs. . .
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RECOMMENDATION: '.. Approve;'
PUBLIC HEARING.
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2 I. Lake Elsinore Ford; Commercial Design Review'No. 2005~02, .
Conditional UsePermitNo.2005-06,V~iance No. 2005"03liI1d
Mitigated N~gative Declaratio~ No; 2005~06. . '. .. .
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. RECOMMENDATlON: .
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PAGE FIVE -CITY COUNCIL AGENDA - NOVEMBER 8, 2005
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Tentat~ve Tract Map No. 31593.
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RECOMMENDATION:
Adopt Resolution No. 2005-156,
adopting Findings of Consistency with
the Multiple Species Habitat
Conservation Plan (MSHCP).
Adopt Resolution No. 2005-157,
adopting Mitigated Negative
Declaration No. 2005-08.
Adopt Resolution No. 2005-158,
adopting Tentative Tract Map No.
31593.
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Extension of time for Tentative Parcel Map No. 30985.
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RECOMMENDATION:
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Adopt Resolution No. 2005-159,
approving the Extension of Time for
Tentative Parcel Map No. 30985.
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Formation ofCFD 2004-2 (Viscaya); call a special election; canvas
electio~ results; authorizing levy of special taxes.
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RECOMMENDATION:
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Adopt Resolution No. 2005-160,
approving the formation of the
District.
Adopt Resolution No. 2005-161, to
incur bonded indebtedness and calling
a special election.
Adopt Resolution No. 2005-162,
ordering canvassing of the election
results.
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PAGE SIX ~CITYCOUNCILAGENi>A:~NeVEMBER 8,2005
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BUSINESS ITEMS
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31. Resolution authbrizing'th~ issuanceo056nds and: approving bond'
documents for CommunitY Faci1itiesDistrictNo.2005~2 (Alberhili
Ranch): ",
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Ad6ptResolutionNo,. 2005-163;
" approving the iss!lallceof'CFD ',. "
2005~2, (Alberhill Randi)2()O:SSenes
A Bonds; Fiscal Ageni Agr'~eJnent, .,
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"" CohtiJ1Uing:Dil)closuie AgreeVlent,
Purchase. Ccintr,a, c~,Prt~limhiary Official,
Staienients and the Funding, '"
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Construction and Acquisition,'
Agreemeht:,' '. .
RECOMMENDATION:
PUBLIC COM:lVIENTS:"-,NON-AGENDIZED:ITEMS,;;-3MINUTES ",'
(Please read & compleie a Speakercs ForinartliePodium,priortb the8furt of "
the City Council Meeting) .... .
COMMITTEE REPORTS
CITY TREASURER COMMENTS
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PAGE SEVEN - CITY COUNCIL AGENDA - NOVEMBER 8, 2005
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CITY COUNCIL COMMENTS
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ADJOURNl\!IENT
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OF
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. . .WHEREAS, Armistice Day officially became a holid~:yj"," .
the United Statesiu 1926, and a hationalholiday 12 years later: "Oli: ' '.
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. June ,I , ,) 954, the name changed.fu :Vt:terans pay to honmal!'~ U~S.\);,I,'
vetejarlS;'al}d.' ..' .,'..(" . .., .,.',-.,.".,'.:",.,:,':."....
. '. '. ...:':<(~IlEREAS, inNQvetdber;I:919c iss~e<lhis Adnis~i~Pff~'{:.i:i,,\
..~::j~ftt~~~~;~~:::i:~~:t~~~~r~~0A%~;ti~~:;~fw~~ri~\(;:::,:(~:
.~ifh~,~~~~rt pr:ide i~ the heJ;ois~: @~i}h,9se,W4(),died' int~~:G~~f~(~i/i(;))!:
~erv.!ce,'AAd'~I~hgratltude [01' $e VjIl:;t(jfY.;' b.othbecause ofthe,!liitijt"iW~!#li!lil:"!,
,.<<rh'jPIt,iit,'l\lls1i:ied us andbeca~s~ drtli~ ?pportunitx irfI\1~:!l$iry:qW)i)!/\;;;:
. . 'AfIi~'r,i,cl1;tp,,~howhersympatliy:With,pe~ce;~n'4 justice ihth!J.cdutit;H,~)~m\\,'ii:!H:
':ti-fe':natioiifi'and ' , -'< ,;,'~~::W;\~1\);nr-'i};~\\'~;;\j!
. ..... '. .. . .....:WaE~AS, P~esideqtEis~nhoWet r~fe~ed t~ the~~~~~\i~;::!\;~
~f\inametb Veteran'5 Day in' honorof(iJie' seridcemenof idfAJh:&J(Wl~l ,('i':::,
. ,,',,'
.' hQmeJroJ.11 th~itdl!ties and their' aommitJTIeni tp se.wice': in:SPii;e:~,)~~:n\\ ;:
: .' AiiIdicans\.::' "., ' . :. ',\.',\.: '.i, '
';."":,;.{,; OJ'.''':'::'''': 'ji;i '-".' ..", I._
cp~~~:~'ftH~~~F:~:~~~q:.~:~..;:,:::.:.!
'. N'ovettibei;::'~p05" do hereby .teco~ize NQiVeqlberH,:2005;;!M!i::
. - ;.;' i';"'<';:'-~ ;. ":; ',- ,_ _ ,.-_~ -. ,,; "', ",",' "'_:,':;' """",. ;'---"_,:;,,~_ _ '~~"~,.\),,_>,,;
, . 'Vet~rllnsDllY . and ,urge all Ame~icansJo recogni~e the. \ililor,,:~::: '. .
saarifice',of ourXderans through cererri(iJnies Iln<!.prl,lYt:rs,;.. . .. :':i,;i,:/;"<,i;' .
'. .' . .... /:'i,.,!i!!{,',,;;':
ROBERT E; MAG$!'M~Y:o.it~',~:'i',';::
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AGENDA ITEM NO.
PACE \.
AGENDA ITEM NO. C
PAGE \ OF \
OCTOBER 31, 2005 CITY OF LAKE ELSINORE WARRANT
SUMMARY
FUND# FUND DESCRIPTION TOTAL
(' 100 GENERAL FUND $ 2,103,005.97 .
102 L.L.E.B.G. PROGRAM FUND 1,708.22.
105 MISCELLANEOUS GENERAL PROJECT FUND . 37,659.79
110 STATE GAS TAX FUND 238.02
1.12 TRANSPORTATION/MEASURE A FUND 367.66
130 LIGHTING/LANDSCAPE MAINTENANCE FUND 26,033.89
135 L.L.M.D. NO.1 FUND 500.00
204 SIGNAL C.I.P. FUND 339.30
205 TRAFFIC IMPACT FEE FUND 1,211.67
254 89-1 RAILROAD CANYON IMPROVEMENT FUND 5,446.89
351 A.D. 87-2 DEBT SERVICE FUND 816.28
352 A.D. 86-1 DEBT SERVICE FUND 1,251.87
353 AD. 89-1 DEBT SERVICE FUND 2,614.82
356 A.D. 90-1A DEBT SERVICE FUND 2,576.66
357 C.F.D. 2003-02 DEBT SERVICE FUND 1,350.00
358 C.F.D. 91-2 DEBT SERVICE FUND 900.00
360 A.D. 93-1 DEBT SERVICE FUND 3,338.69
362 C.FD.95-1 (1996-E) DEBT SERVICE FUND 900.00
363 C.F.D. 88-3 (III 1997-A) DEBT SERVICE FUND 1,350.00
366 C.FD. 2005-6 CITY CENTER DEBT SERVICE FUND 900.00
368 C.F.D. 2004-2 VISCAYA DEBT SERVICE FUND 6,000.00
369 C.FD..2004-3 ROSETTA CANYON DEBT SERVICE FUND 1,350.00
370 C.F.D. 2005-X CAMINO DEL NORTE DEBT SERVICE FUND' 2,875.00
371 C.FD. 2005-1 SERENITY/KB DEBT SERVICE FUND 900.00
372 C.FD. 2005-2 ALBERHILL RANCH DEBT SERVICE FUND 3,000.00
n 376 C.FD. 2005-7 LA STRADA DEBT SERVICE FUND 6,000.00
605 PUBLIC IMPROVEMENT TRUST FUND 135.72
608 TRUST DEPOSIT AND PRE-PAID EXPENSE FUND 59,400.00
620 COST RECOVERY SYSTEM (5,900.19)
650 C.FD. 2003-1 LAW & FIRE DEBT SERVICE FUND 2,250.00
GRAND TOTAL $ 2,268,520.26
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11/212005 Warrant 103105
1011
AGENDA ITEM NO.
PAGE I OF LI
OCTOBER 31. 2005
CITY OF LAKE ELSINORE
CHECK# VENDOR NAME
82948 : VOID (THOMAS W. BUCKLEY)
83166 VOID (HANDERY UNION SQUARE HOTEL)
83275 VOID (CITICORP VENDOR FINANCE, INC.)
83445 DEPARTMENT OF CONSERVATION
83586 VAN BLARCOM, LEIBOLD, MCCLENDON & MANN
83587 LAKE ELSINORE VALLEY CHAMBER OF COMMERCE
83588 CALIFORNIA P.E.R.S.
83589 AL TURA CREDIT UNION
83590 I.C.M.A. RETIREMENT TRUST
83591 JFK RENTALS & MGMT
83592 UNITED STATES POSTAL SERVICE
83593 THE MARK FISHER COMPANY
83594 THE MARK FISHER COMPANY
83595 GOOD TIME ENTERTAINMENT
83596 UNION BANK OF CALIFORNIA
83597 TERRA COTTA PARTNERS,L.L.C.
83599 VOID
83600-83603 A & A JANITORIAL SERVICE
83604 ACTION PARK ALLIANCE, INC.
83605 AFFORDABLE MAILING SOLUTIONS
83606 ALL PHASE REFRIGERATION & AIR CONDITIONING, INC.
83607 AMERICAN FENCE COMPANY, INC.
83608 AMERICAN FORENSIC NURSES
83609 AMERICAN PAYROLL ASSOCIATION
83610 APPLE ONE EMPLOYMENT SERVICES
83611 ARAMARK
83612-83613 ARTISAN GOLDSMITHS & AWARDS
83614 RAY BERNER
83615-83616 BERRYMAN & HENIGAR, INC.
83617 BIO-TOX LABORATORIES
83618 CYNTHIA BLOOD-WILSON
83619 CALED
83620 . CALIFORNIA DEBT & ADVISORY COMMISSION
83621 STATE OF CALIFORNIA DEPARTMENT OF JUSTICE
83622 CANON FINANCIAL SERVICES, INC.
83623 CITICORP VENDOR FINANCE, INC.
83624 CNH CAPITAL AMERICA, L.L.C.
83625 CONNEY SAFETY PRODUCTS
83626 KIRT A. COURY
83627 CRAFCO, INC.
83628 CUTTING EDGE STAFFING, INC.
83629-83630 D & SELECTRIC
83631 D.MV.
83632 ALMA DE LA CRUZ
83633 DELL MARKETING, L.P.
83634 DIEHL, EVANS & COMPANY, L.L.P.
83635 DO IT CENTER
83636 CAROLE K. DONAHOE, AICP
83637 JASON DUGAN
83638 AZUCENA DURAN
83639-83645 ELSINORE VALLEY MUNICIPAL WATER DISTRICT
83646 E.S. BABCOCK & SONS, INC.
83647 ELITE ELEVATOR, INC.
1112/2005 Warrant 103105
10F3
WARRANT LIST
$
AMOUNT
(110.50)
(332.22)
(770.41)
13,493.79
28,103.36
120.00
38,065.86
1,000.00
4,238.00 .
533.00
2,336.04
769.00
2,526.00
175.00
11,908.80
47,374.60
0.00
6,138.75
4,166.00
1,070.69
180.37
60.00
227.50
721.75
4,847.05
203.91
538.69 .
200.00 .
28,830.45
288.68
189.50
465.00
125.00
210.00 .
1,038.96
1,540.82 .
3,251.42
88.45
6,750.00
1,611.92
1,852.80
5,825.50
30.00
131.25
2,047.56
11,500.00
345.55
877.50
100.00
73.00
47,683.61
600.00
312.00
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AGENDA ITEM NO.- \
PAGE.;J-. OF <f
OCTOBER 31. 2005
CITY OF LAKE ELSINORE
CHECK# VENDOR NAME
,......., 83648 ELSINORE ELECTRICAL SUPPLY, INC.
\ ' 83649 ELSINORE PIONEER LUMBER CO.
83650 ELSINORE VALLEY RENTALS
83651-83652 EXCEL LANDSCAPE, INC.
83653 FEDERAL EXPRESS CORPORATION
83654 FILARSKY & WATT, L.L.P.
83655-83658 GREENSCAPE LANDSCAPE, INC. .
83659 LORENA HANCOCK
83660 HARDY & HARPER,INC.
83661-83664 HARRIS & ASSOCIATES, INC.
83665 HEWLETT-PACKARD COMPANY
83666 IMPACT PROMOTIONAL PRODUCTS
83667 INLAND EMPIRE LOCK & KEY
83668 DE JANDA
83669 JEFF HAUSER MOBILE WELDING
83670 JOHN DEERE LANDSCAPES
83671 JONES & STOKES
83672 STEVE KARVELOT
83673 PAT KILROY
83674 KIRSTEN KING
83675 L & M FERTILIZER, INC.
83676 LAKE CHEVROLET
83677 LAKE ELSINORE FORD
83676 LSA ASSOCIATES, INC.
83679 CHARLES MACKEY JR.
,......., 83680 KIM MAGEE
\ '83681 MAXIMUM SIGNS
83682 MAYHALL PRINT SHOP
83663 MBIA
83684 MEARS REALTY
83685 MIKEN CONSTRUCTION
83686 LINDA M. MILLER
83687 JAMES NAKAKIHARA
83688 NBS GOVERNMENT FINANCE GROUP
83689 NELSON PAVING, INC.
83690 NETCOMP TECHNOLOGIES, INC.
83691 . NEXTEL COMMUNICATIONS
83692-83693 PETTY CASH
, 83694 PHD PENSKE LEASING
83695 PREMIUM PALOMAR MT. SPRING WATER.
83696 THE PRESS ENTERPRISE
83697-83698 PRUDENTIAL OVERALL SUPPLY
83699 QUILL CORPORATION
63700 R.H.F., INC.
83701 RANCHO REPROGRAPHICS, INC.
83702 REGIONAL CONSERVATION AUTHORITY
83703 RIGHTWAY
83704 RIVERSIDE COUNTY SHERIFF, CORRECTIONS ACCOUNTING
83705 RIVERSIDE COUNTY SHERIFF, ACCOUNTING AND FINANCE
. 83706 COUNTY OF RIVERSIDE OFFICE OF ASSESSOR, GARY L. ORSO
83707 COUNTY OF RIVERSIDE, BOB DOYLE, SHERIFF
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11/212005 Warrant 103105
2QF3
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WARRANTUST
AMOUNT
48.15
17.11
506.00
6,956.75
40.74
3,905.00
,. 13,670.00
3,198.75
1 ,984.00
101,001.45
1,236.97
692.03
". 28.12
120.00
420.00
399.83
482,34
183.75
471.80
. 498.75
80.06
1,726.98
27.65
4,242.50 .
6,615.38
109.59
129.30
1,501.15
98.10
254.00
92.00
4,152.50
450.00
10,598.32
4,940.45
4,500.00
1,582.09
404.60
898.58
289.10
602.20
251.78
477.77
138.12
279.53
179,148.00
972.36
6,624.00
1,353,962.25
27.00
19,248.14
AGENDA ITEM NO.
PAGE 3 OF
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OcrOBER 31, 2005
CITY OF LAKE ELSINORE
WARRANT UST
CHECK# VENDOR NAME
83708 ROBBINS PEST MANAGEMENT, INC.
83709 JESUS ROQUE
83710 ROTARY CLUB OF LAKE ELSINORE
83711 ROTO ROOTER PLUMBERS
83712 SADDLE BACK MATERIALS COMPANY, INC.
83713 KATHLEEN R. SMITH
83714 DAVID S. SOLOMON
83715- 83719 SOUTHERN CALIFORNIA EDISON CO.
83720 SQUAD FITTERS, INC.
83721 STAPLES CREDIT PLAN
83722 STEVE'S TOWING, INC.
83723 PEGGY J. STORAASLI
83724 BOB STOVER, INC.
83725 SUNGARD HTE, INC.
83726 T. T. GROUP
83727 TARGET SPECIALTY PRODUCTS
83728 TEAM AUTOAID, INC.
83729 TEMECULA COPIERS
83730 TEXTRON FINANCIAL CORPORATION
83731 TRANS AMERICAN SOIL SERVICES, INC.
83732 TRUCK PARTS SUPPLY & ETC.
83733 VENUS PRINTING
83734 VERIZON CALIFORNIA, INC.
83735 VICTOR R. MARTINEZ TRUCKING
83736 VILLAGE EQUIPMENT RENTALS, INC.
83737 WAL-MART COMMUNITY
83738 ZEE MEDICAL, INC.
83739 ZONES. COM
83740 24 HOUR FIRE PROTECTION, INC.
TOTAL
AMOUNT
400.00
480.00
55.00
760.00
1,085.31
262.50
3,257.28
17,333.86
41.98
774.07
300.00 .
308.00
4,931.10
36,517.30
7,246.24
115.69
20.27
722.44
987.13
948,52
726.98
330.53
975.51
3,575.00
220.50
332.73
335.41
476.90
456.61
$ 2,108,015.90
PIE DATE:
PAYROLL TAXES
PAYROLL CASH
46,171.69
114,332.67
GRAND TOTAL
$ 2,268,520.26
11/212005 Warrant 103105
AGENDA ITEM NO. \
PAGE <'7' OF Lj
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CITY OF LAKE ELSINORE
. REPORT TO CITY COUNCIL
TO:
MAYOR AND CITY COUNCIL
FROM:
ROBERT A.BRADY, CITY MANAGER'
DATE:
NOVEMBER 8, 2005
SUBJECT:
AUTHORIZATION TO PREPARE CEQA
COMPLIANCE DOCUMENTS FOR SPECIFIC
PLAN 2005-01, ZONE CHANGE 2005-01,
CONDITIONAL USE PERMIT 2005-21,
RESIDENTIAL DESIGN REVIEW 2005-12 AND
LEAP 2005-11 FOR VILLAGE ATLAKESHORE
(CLASSIC PACIFIC).
(1 BACKGROUND
The City of Lake ElsinQre serves as the lead agency to evaluate the
environmental impacts of development projects proposed within the City.
The Community Development Department is responsible for the preparation
of the necessary information and, depending on the scope arid size of the
project, will either prepare the environmental documents in-hollse orhave a
consultant prepare the documents and studies. The cost of preparing the
environmental analysis is paid for by the project applicant through the
application fee process. The project is lmown as Specific Plan 2005-01,
Zone Change 2005-01, Conditional Use Permit 2005-21, Residential Design
Review 2005-12 and LEAP 2005-11 for the Village at Lakeshore residential
projectto be constructed by Classic Pacific.
DISCUSSION
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Due.to the scope of this project, staff has requested that Templeton Planning
Group prepare the CEQA documents (Initial Study and Mitigated Negative
Declaration) for the project lmown as SP 2005-01, ZC 2005-01, C. UP 2005-2-
. . AGENDA ITEM NO. ....,.,-
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REPORT TO CITY COUNCIL
November 8, 2005
Page 2 of2
21, R-2005-l2 and LEAP 2005-11. The proposed cost of preparing the
environmental documents is estimated at $49,100.00. .
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FISCAL IMPACT
The cost of preparing the environmental review will be paid by the
applicant's fees through the City's cost recovery program. All staff
administrative time and consultant costs are paid from the applicant's fees.
There is no cost to the City.
RECOMMENDATION
Staff recommends that the City Council authorize the City Manager to
approve an agreement with Templeton Planning Group to prepare the CEQA
compliance documents for Specific Plan SP 2005-01, Zone Change ZC
2005-01, Conditional Use Permit CUP 2005-21, Residential Design Review
R 2005-12 and LEAP 2005-11 in the amount of $49,100.00.
PREPARED BY:
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AP.PROVED BY:
ATTACHMENTS
1. Site Vicinity Map
2. Copy of Templeton Planning Group Proposal. .
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ACENDA ITEM NO.
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CITY OF lAKE ELSINORE
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COUNTY OF RIVERSIDE
LAKE ELSINORE
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NOT TO SCALE
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PROJECT SITE MAP
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TEMPLETON
PLANNING
GROUP
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Design
Planning
Environmental
October 17,2005
Mr. Matthew Harris
Senior Planner
City of Lake Elsinore
130 S. Main Street
Lake Elsinore, CA 92530
RE: . PROPOSAL TO PREP ARE A MITIGATED NEGATIVE DECLARATION FOR
THE VILLAGES AT LAKESHORE, LAKE ELSINORE, CA.
Dear Mr. Harris:
The Templeton Planning Group (TPG)is pleased to submit this proposal to prepare an Initial
Study and Mitigated Negative Declaration (MND) for the Villages at Lakeshore Project in the
City of Lake Elsinore. TPG has extensive experience with residential development projects
having prepared numerous environmental documents, each with particular issues, physical
constraints, community concerns similar to those facing the development of the proposed
Villages at Lakeshore Project. Representative projects include the Wagon Wheel Specific Plan
(1,000 dwelling units, 125,000 sq. ft. of retail commercial, a 3-acre flex use area, and a 122-room
hotel) in the City of Oxnard, the Central Park Supplemental EIR (1,380 dwelling units, 19,700
sq. ft. of retail use, and 90,000 sq. ft. of office use), and the Plaza-Irvine Addendum to the Irvine
Business Complex EIR (two high-rise residential towers totaling 202 dwelling units, a 132,800
sq. ft. office building and 12,300 sq. ft. of retail and restaurant uses) in the City of Irvine.
Additional environmental projects worth noting include the 280-acre Coyote Hills East Specific
Plan EIR in the City of Fullerton, the 7, 743-acre Northern Sphere Area General Plan Amendment
and Zone Change EIR, the highly controversial I ,570-acre Planning Area 27(Turtle Ridge) EIR,
and the 1,239-acre Planning Area 17 Zone Change and Master Plan EIR, located in the City of
Irvine.
Key staff and resources are proposed to be allocated to this project. Mr. Peter Templeton,
Principal, will be responsible for directing the services to be provided. Mr. Templeton has over
30 years of experience in urban planning, and is an expert in the' field of land planning,
particularly master planning for large-scale communities with a variety of environmental
sensitivities. Mr. Templeton's grading and site planning expertise has been awarded six times
by the American Planning Association, three times by the National Association of Home build ers,
and over thirty times by the Pacific Coast Builders Conference.
AGENDA ITEM NO.
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1470 Jamboree Road . Suite 200.. Newport Beach. California. 92660-6202 . Tel (949) 718-0640 . Fax (949) 718-0655
pte m pi eton@templetonplannin9.com
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Mr. Matthew Harris
City of Lake Elsinore
Page 2
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Ms. Nicole Morse, Senior Project Manager, will have primary responsibility for project
management, staffliaison, and consultant coordination in preparation ofthe MND. Ms. Morse
has been involved in the preparation of over 30 environmental documents during her career. In
addition, Ms. Morse. is a second year law student at Whittier Law School specializing in
environmental and land use law. .
We look forward to the possibility of working with you and the remainder of the plarming staff
in Lake Elsinore to bring about the successful completion of the Initial Study and MND for the
Villages at Lakeshore Project. If you have any questions regarding the contents ofthis proposal,
please call Peter Templeton, at (949) 718-0640.
Sincerely,
TEMPLETON PLANNING GROUP
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/' Peter pleton
Principal
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Nicole Morse
Senior Project Manager
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AGf:1'JDA ITEM NO. ").
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Proposal
to Prepare a
Mitigated Negative Declaration
for the
Village at Lakeshore
Lake Elsinore, CA
Prepared for:
Mr. Matthew Harris
Senior Planner
City of Lake Elsinore
130 S. Main Street
Lake Elsinore, CA 92530
Prepared by:
Templeton Planning Group
1470 Jamboree Road, Suite 200
Newport Beach, CA 92660
(949) 718-0640
Contact: Peter Templeton
October 17, 2005
ACENDA ITEM NO.
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Table of Contents
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Section
Page
1. INTRODUCTION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
2. SCOPE OF WORK . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
3. COST ESTIMATE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
4. PROJECT SCHEDULE. . , . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
5. CONSULTANT TEAM. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
6. RESUMES. .. . ................... ... ....... . ..... .. ... ......18
7. . QUALIFICATIONS AND REFERENCES ........................... 25
8. STATEMENT OF OFFER.... ....... .. . ..... . .. .................31
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Introduction
The City of Lake E]sinore is seeking a consultant to prepare CEQA documentation for a Specific
Plan, Residential Design Review and Tentative Parcel Map to allow for the development of 146
single-family homes on approximately 20 acres. The Villages at Lakeshore Project is located at
Riverside Drive and Grand Avenue.
This project requires environmental review pursuant to the California Environmenta] Qua]ity Act
(Pub. Res. Code Sec. 21000 et seq.). As a result, the City of Lake E1sinor~ is soliciting proposals
to prepare an Initial Study that provides the mitigation measures necessary'to reduce potentia]
impacts to a level of insignificance. Provided all potentia] environmental impacts can be reduced
to a level of insignificance, the Initia] Study will provide the findings necessary to adopt a Mitigated
Negative Dec]aration for the proposed project in accordance with the California Environmenta]
Qua]ity Act (CEQA), and CEQA Guidelines. ;'
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,(\ For many years, public agencies have effectively used expanded initial studies to adopt mitigated
Negative Declarations for projects which avoid or mitigate all potentially significant effects. In
1993, Senate Bill 919 and Assemb]y Bill 1888 enacted several amendments to CEQA to further
encourage and support the use of expanded initial studies/mitigated Negative Declarations. Pursuant
to the] 993 CEQA Amendments, the use of an Initia] Study for the proposed Villages at Lakeshore
Project will allow the applicant to develop the necessary mitigative solutions to reduce or eliminate
the potential]y significant effects of the project while avoiding the significant amount of time and
effort typically associated withEIR preparation.
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The Templeton Planning Group is uniquely qualified for preparation of this Initia] Study. TPG
staff began using this effective CEQA too] long before the 1993 CEQA Amendments codified their
use (AB 1888, SB 9] 9). Since 1990, TPG has prepared numerous Initia] Studies for a variety of
projects including:
Pro;ect
Client
. Airborne Express/Los Angeles Dept. of Airports
Salton Sea Authority
City of Irvine
Ontario Airport Expansion
Salton Sea Evaporation Pond Pilot Project
Culver Drive Widening and Realignment
Cal (IT)2 Research Facility
University of Califo~a, Irvine
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Proiect
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Gateway South
City of West Hollywood
Ontario Airport Expansion
Westminster Center
EI Dorado Subdivision
Emery W orldwide/Los Angeles Depl. of Airports
IDM Corporation/City of Westminster
Lewis Homes/City of Calexico
State Mining and Geology Board
State Mining and Geology Board
Fontana Paving, Inc. Reclamation Plan
United Building Materials Co. Reclamation Plan
Palmdale Auto Center
City of Palm dale
Bernardo Mountain
Fairfield Ranch
Bernardo Mountain Company/City of Ese on dido
City of Chino Hills .
Flamenco and Pinecrest Parks
City of Mission Viejo.
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As evidenced by the information contained in this proposal, the Templeton Planning Group and
associated project team have the expertise necessary to prepare the Initial Study and MND for the
Villages at Lakeshore Project in a timely manner. We look forward to bringing our experience and
expertise to bear for the City of Lake Elsinore and offer thoroughness and an early completion of the
MND for the proposed project.
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Scope of Work
. Task 1: Mitigated Negative Declaration (MND)
A. General Information
In accordance with Section 15063 of the CEQA Guidelines, the IS/MND will include a
description of the project, environmental setting, potential environmental impacts, and
mitigation measures for any significant effects. The ISIMND will also address
consistency of the proposed project with adopted plans and policies. Specifically, the
ISIMND will contain the following sections:.
. . Purpose and Scope of the Proposed Action
. Project Description
. Surrounding Land Use & Project Setting.
. Analysis of Environmental Impacts
. List Preparers .
. Process Documentation (Appendix)
. List of References .
B. Discussion of Environmental Evaluation
The MND will be clearly written and will avoid the use of technical jargon so that the
document is easily uilderstood. If technical terms need to be introduced for accuracy,
they will be c1eariy defined. The analysis of issues will be thorough, yet concise. We
will formulate mitigation measures, if necessary, which can be ~asily implemented
relating directly to the primary and secondary effects identified in the impact sections of
the document. We will address the following impact categories consistent with the
Environmental Checklist Form inCEQA:'
. Aesthetics
. Agricultural Resources
. Air Quality
. Biological Resources
. Cultural Resources
. Mineral Resources
. Noise.
. Population/H~using
. Public Services
. Recreation
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Geology/Soils
Hazards/Hazardous Materials
Hydrology/Water Quality
Land Use/Planning
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Transportation/Traffic
Utilities/Service Systems
Mandatory Findings of
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The MND will address all of the impact categories listed above, however, it will focus
on the following issues:
c. Aesthetics
The proposed development will likely be visible from its surrounding areas. Therefore,
the Templeton Planning Group, will perform the following tasks to determine potential
aesthetic impacts associated with the project:,
. Document aesthetically significant viewshedsfrom the adjacent areas by taking
,panoramic photographs of.the project site from specific viewpoints.
. Review the proposed design for its aesthetic quality in relation to existing and
proposed uses and adjacent roadways.,
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. Discuss any potentially significant aesthetic impacts associated with project
implementation including increased light and glare. U
. Specify mitigation measures that will reduce all identified impacts to the maximum
extent feasible. Measures could include landscaping, berming, or alternative
setbacks to reduce the visual impact of the project.
D. Air Quality
TPG will review ,the air quality study prepared for the proposed project by the project
applicant. The results, findings and recommendations will be incorporated into the
MND, and the study will be included in its entirety as an appendix. To accurately assess
the potential impacts to air quality, the analysis will include the following information:
. Calculate temporary construction activity emissions using procedures identified .
within the SCAQMD CEQA Air Quality Handbook (1993).
. Calculate regional vehicular emissions using the California Air ResourcesBoard
(ARB) URBEMIS2002 computer model.
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. Evaluate the potential for any micro-scale air pollution "hotspot',' formation at project
area intersections using a screening procedure based upon the CALlNE41ine source
dispersion model.
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Discuss project consistency with the South Coast Air Basin Regional Air Quality
Management Plan in terms ofland use planning consistency.
Identify any potentially acceptable mitigation measures, including any relevant
transportation control measures (TCMs) incorporated into the air basin portions of .
the California State Implementation Plan (SIP).
.
E. Geology and Soils
TPG will review and summarize any relevant geotechnical informa,tion provided by the
applicant for the project site. We will incorporate the information contained in the
geotechnical report in the MND.
F.
Hazards and Hazardous Materials
.'
This section will evaluate past site activities and proposed constructi~n and to determine
whether the site currently contains materials that are hazardous to human health or the
environment, and whether the proposed uses of this site could result in such hazards.
TPG will prepare a narrative discussion of the presence/absence and significance of
hazardous waste risks, together with recommendations for remediation measures, if
needed, that will be included in the MND. TPG will also review ,and incorporate the
Phase I Level Site.Assessment provided by the project applicant.
G.
HydrologylWater Quality
TPG will summarize hydrology information provided by the applicartt for the project site.
TPG will provided the following analysis: '
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Description of existing conditions including drainage areas" flood hazard, and
facilities. . ,
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Description of proposed discharge locations for stormwater runoff.
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Assessment of potential surface water quality impacts due to u)'ban runoff.
Development of appropriate mitigation measures in accordancf with the National
Pollutant Discharge Elimination System (NPDES) and applicable County of Orange
or City drainage requirements.
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Past and present land use conditions will be documented, and the local land use patterns
will be described. Analysis of project impacts will focus on project consistency with the
City's General Plan and Zoning regulations. Compatibility ofthe proposed land use plan
with the surrounding land use pattern will also be discussed. Specifically, the Templeton
Planning Group will:
. Inventory of all existing and planned land uses in the project area.
. Analyze recent development trends within the general area and assess the
consistency ofthe proposed development with both current development trends as
well as relevant local and regional land use planning programs (i.e., City of Lake
Elsinore General Plan, Zoning Ordinance, Architectural Design Guidelines, etc.).
. Provide a nexus between the project's environmental impacts in aggregate and the
environmental compatibility of the proposed project with surrounding uses.
. Propose mitigation measures to reduce potential conflicts between the proposed
development and the surrounding uses and future development to the maximum
extent feasible.
. L Noise
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A noise study will be prepared by the project applicant and incorporated into the MND,
and the study will be included in its entirety as an appendix. To accurately assess the
potential impacts associated with noise, the following tasks will be included in the
analysis:
. Perform limited on-site ambient noise monitoring to update the baseline noise
characterization of the area. .
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. Develop a baseline noise exposure profile in terms of the CNEL noise metric using
the FHW A Model with the latest California vehicle noise curves (CAL VENO).
. Prepare a no-project versus with-project mobile noise impact comparison. ldentify
specific sensitive receiver locations where mobile source noise impacts may
adversely affect project area residents.
. Evaluate stationary noise impacts from temporary on-site grading and construction
. noise sources.
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. Relate project noise impacts to the Noise Element noise/land use compatibility
guidelines in the City of Lake Elsinore General Plan Noise Element and other
applicable noise exposure regulations.
. Develop a noise impact mitigation plan for any predicted noise impacts that exceed
target noise exposure limits.
J. Public Services and Utilities
TPG will coordinate with service and utility providers to determine if development of
the project site with its proposed uses can be adequately served. The following service
and utility providers will be contacted:
. Lake Elsinore Police Department
. Riverside County Fire Department
. Elsinore Valley Water District
. Riverside County Waste Management Department
. Southern California Edison
. Southern California Gas
K. Transportation/Traffic
In order to assess potential traffic impacts of the proposed project, Templeton Planning
Group will work closely with the City's Transportation staff to ensure that the traffic
study prepared by the project applicant adequately addresses the concerns of City staff
. and the public at large. After review of the traffic study, the results, findings, and
recommendations will be incorporated into the ErR. This traffic study will be included
in its entirety as an appendix.
L. Screen check Review/Revision
The Templeton Planning Group will meet with City staff to discuss their comments on
the Screencheck Draft MND (5 copies will be provided). We will respond to City staff
comments and revise and supplementthe Screencheck Draft MND to adequately address
any issues identified in the screencheck review process. Follow-up with City
departments or other agencies will be conducted as necessary. It is anticipated that all
City comments will be transmitted in writing and at the same time. .
. Upon approval of the Draft MND by City staff, fiftyfive (55) copies of the Draft MND
will be prepared by TPG and distributed to the cooperating agencies. TPG will also
complete thi: Notice of Completion (NOC) for signature by the City of Lake Elsinore, and
forward to the State Clearinghouse.
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Following receipt of all comments on the Draft MND from responsible agencies, a
Response to Comments document will be prepared and incorporated into the Final MND,
along with required ordinances, staff reports and findings. The cost estimate for this task
has been based on an estimated 40 hours to prepare responses. Costs beyond the 40
hours for preparing the responses will be on a time and materials basis.
TPG will also prepare the Notice of Determination (NOD) and Certificate of Fee
Exemption for signature by the City of Lake Elsinore and file these documents with the
County Clerk.
Task 2: Mitigation Monitoring Program
Section 21081.6 of the Public Resources Code requires lead agencies to adopt a
monitoring/reporting program for any project for which mitigation measures have been
required. The actual program must be' adopted at the time of project approval. A
mitigation monitoring program, as required by S'ection 21081.6 of the Public Resources
Code, will be prepared. The appropriate time frame for each proposed mitigation
measure will be identified. In addition, the entity responsible for implementation of the
measure and for monitoring and check-off will be identified.
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Task 3: Meetings and Public Hearings ·
The Templeton Planning Group plans to approach this project and coordinate closely
with the City staff to ensure the product delivered, is a product anticipated by staff, and
one that will serve as a useful tool for decision-makers when considering the approval
of the project. In an effort to achieve this level of communication, we have included the
following meetings:
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One (1) orientationlkick-off meeting with City staff
Four (4) project status/update meetings with City staff
Two (2) meetings with local community groups
Three (3) public hearings
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Task 4: Project Management and Coordination
As the lead consultant, the Templeton Planning Group (TPG) will direct and manage all
subconsultants included on the project team, and will act as the primary contact with the
City. Our responsibilities will include: (I) task scheduling and assignment, management
of resources, monitoring of costs, and schedule adherence; (2) management and
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coordination of subconsultants, including contract administration and accounting; (3)
consultation and coordination with local, state and federal agencies relative to the
environmental document and the environmental review process; (4) coordination and
communications with the City's project team to ensure that City policies, procedures and
any applicable codes are complied with and where applicable, are incorporated into the
MND; (5) ensuring that the environmental review process and the MND satisfY the
statutes and guidelines of CEQA, and the City of Lake Elsinore General Plan, CEQA
Procedures; (6) representing the Consultant team in public meetings and project progress
meetings as requested by the City.
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Reimbursables- A preliminary estimate of reimbursable costs has been provided in the
following section. However, this is an estimate only. Reimbursable costs shall be billed
at cost. Reimbursables include, but are not limited to, reproductio!l costs for the MND
mitigation monitoring'program, aerial photograph, mileage, travel, delivery, etc. ,Copies
of all invoices for reimbursable items shall be submitted with monthly billings.,
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Cost EstillJste
The cost estimate on the following pages has been prepared to outline MND-related costs. The
TempletonPlanning Group will complete the previous scope-of-work, including subconsultants, for
a not-to-exceed cost of $49,1 00.00. This cost estimate remains valid for 90 days.
Mr. Peter Templeton, Principal at the Templeton Planning Group, has the authority to negotiate
contracts with the City: He can be re~ched at the Templeton Planning Group, 1470 Jamboree Road,
Suite 200,. Newport Beach, California, 92660, telephone (949) 718-0640. .
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Task Description
Templeton Planning Group
Total Cost
Senior Project Assistalit '
Mgr. Project Mgr.
($1501Hr) ($ I OO/Hr)
6 5 $1,400.00
4 4 $1,000.00
4 12 $1,800.00
2 6 $900.00
8 10 $2,200.00
8 10 $2,200.00
12 6 $2,400.00
8 8 $2,000.00
4 8 $1,400.00
6 16 $2,500.00
8 8 $2,000.00
8 20 $3,200.00
40 0 $6,000.00
12 12 $3,000.00
30 20 $6,500.00
40 0 $6,000.00
200 145 $44,500.00
I. Mitigated Negative Declaration (MND)
A. General Information
.B. Disc. ofEnv. Evaluation.
C. Aesthetics
D. Air Quality
E. o Geology and Soils
F. Hazards and Hazardous Materials
G. Hydrology1Water Quality
H: Land Use and Planning
r. Noise ..
in J. Public Services and Utilities
K. TransportationfTraffic
L. Screencheck Review/Revision
M. Final Env. Assessment/Resp. To
Connnents
2. Mitigation Monitoring Program
3. Meetings and Public Hearings
4. Project Management and Coordination
TOTAL (TPG Labor)
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Hours and fees shown are not-le-exceed estimates that will be billed ona time and materials basis, in accordance with the
current hourly rates and fee schedules for the finns and for the personnel involved. Should circumstances arise where a
greater than expected level of effort is warranted. the City may request a greater level of effort by TPG, or by subconsultants.
Such extra level of effort would be considered beyond the scope of this budget, and additional fees and expenses would be
charged on a time and materials basis, in accordance with the current hourly rates and fee schedules for the firms and
ersonnel involved.
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Reimbursables Total:
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$1,000
$250
$2,750
$100
$100
$200
$200
$4,600
$49 100
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PostagelDeliverieslF AX
5 Copies of Sen,eneheek Mitigated Negative
Declaration ($50/Report)
55 Copies of Draft Mitigated Negative Declaration
($50/Report)
5 Copies of Sereeneheek Final Mitigated Negative
Declaration ($20/Report)
5 Copies of Sereeneheek Mitigation Monitoring
Prograrn($20/Report)
10 Copies of Final Mitigated Negative Declaration
($20/Report) . ..
10 Copies of Mitigation Monitoring progra';
($20/Report)
TOTAL ESTIMATED BUDGET
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Hourly Billing Rates
The following list provides the current billing rates of personnel who would be assigned to this
contract:
Peter Templeton, Principal. . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . $ 225/hour
G.]. Shu, Senior Designer. . . . . . ... . . . .. ~ . . . . . . . .. . . . . . . . . . . . . . . 185/hour
Nicole Morse, Senior Project Manager. . . . . . .. . . . . . . . . . . . . . . . . . . .. 150/hour
Vanessa Ko, Assistant Project Manager. . . . . . . . ... . . . . . . . . . . . . . . . . lOO/hour
Graphic Artist ................................................ 65/hour
Word Processing .............................................. 55/hour
Clerical Assistant ............................................. 45/hour
Templeton Planning Group reserves the right to make adjustments to these billing rates throughout
the course of the contract. Substitute and/or supplemental personnel may also be utilized subject to
approval by the City.
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Project Schedule
Preparation of the Villages at Lakeshore Project MND shall be accomplished successfully and on-
time. The Templeton Planning Group is fully capable of complying with the schedule contained on
the following page.
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Villages at Lakeshore MND
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Templeton Planning Group
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Consultant TeanJ
5.1 Templeton Planning Group
For more than 31 years, Mr. Peter Templeton of Templeton Planning Group has provided land
planning consulting services offering the three distinct and interrelated disciplines: planning, design
and environmental services. Templeton Planning Group has a staff of highly qualified professional
environmental specialists and land plan designers who possess a multitude of talents and are familiar
with. a multidisciplinary team approach, demanding schedules, and writing reports to withstand
agency, public and legal scrutiny. Our experience in community planning and expertise in
.. environmental issues has led to a synthesized approach which acknowledges and assimilates
environmental constraints, client goals and community ideals. Templeton Planning Group has
provided environmental and design services for over 10 years.
The firm offers a variety of planning services including development strategies, site planning, urban.
design, hillside and golf course design, feasibility studies and entitlement processing. Our
environmental services include initial studies, EIRs, resource management and mitigation monitoring.
We specialize in analyzing the potential impacts of a given project, developing innovative mitigation
measures to reduce project-related impacts, and steering the EIR through the local government review
process.
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Templeton Planning Group has completed numerous specific plans and environmental documents
for projects located throughout California. The firm has completed a diverse range ofEIR's (most
of which contain nearly identical elements to the proposed project including: general plan/zone
changes, annexations traffic, noise, aesthetics, etc.).
Key Personnel
The professionals at the Templeton Planning Group who will playa key role in this project include
Peter Templeton, Director-in-Charge, Nicole Morse, Senior Project Manager, and Vanessa Ko,
Assistant Project Manager. Their experience and special areas of expertise that will be of substantial
value in this Specific Plan/EIR are summarized below: .
Peter Templeton, Principal, will serve as the Director in charge of the overall Specific Plan/EIR
effort. Peter has o,:er thirty years of experience in the planning and design fields. Mr. Templeton has
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Villages at Lakeshare MND
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AGENDA ITEM NO. }-
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conducted numerous community participation programs, scoping meetings, and consensus building ,
programs resulting in resolution of conflicts between project proponents and community groups. In
most cases, Mr. Templeton is able to nearly eliminate most public concerns through informational
meetings, public presentations, project redesign, and/or development of ,innovative solutions.
Representative projects include Planning Area 27 in the City of Irvine, the East Coyote Hills Specific
Plan Community in the City of Fullerton, the Birch Hills Specific Plan in the City of Brea, and the
Shell Oil Master Planned Community.
Ms. Nicole Morse, Senior Project Manager, will serve as the project manager, assuming direct and
continued respon'sibility' for this service contract. Ms. Morse has oV,er six years of planning and
environmental experience and has had primary responsibility for the preparatiOll and completion of
over 30 environmental documents during her career. Ms. Morse also has gained influence in the
environmental and planning community through her service of three years as Executive Vice
President, Newsletter Editor of the Association of Environmental Professionals, Orange County
Chapter. She currently serves on the Association of Environmental Professionals Legislative
Committee. Ms. Morse's educational background includes a Bachelor of Science degree in the
School of Social Ecology from the University of California, Irvine and is currently a second year law
student at Whittier Law School specializing in environmental and land use law.
Ms. Vanessa Ko is a Project Planner in the Environmental Services Division of Templeton Planning
Group. Ms. Ko is a double major in Social Ecology, Environmental Analysis and Design and
Psychology at the University of California, Irvine. Ms. Ko has completed numerous courses related
to Environmental Planning. Her associated training includes CEQA Compliance and GIS. Ms. Ko's
recent experience includes work on the Aera Energy Master Planned Community EIR for the Counties
of Los Angeles and Orange, and the Leming Residential Project EIR for the City of Walnut.
Villages at Lakeshore MND
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, T ernple/an Planning Group
AGENDA ITEM NO.
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Resunles
The following pages contain complete resumes of the key professionals identified in Section 5 who
will be involved in preparation of the MND for the Villages at Lakeshore Project.
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Villages at Lakeshare MND
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Templeton Planning Group
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Peter Templeton
Principal
'Peter Templeton is a graduate ofCalifo~ia State Polytechnic University at San Luis Obispo, with a
. - - I
Bachelor of Science Degree in City and Regional Planning. He has continued ~is studies in the field
of urban planning with graduate work at California Stl/te Polytechnic University at Pomona, His
memberships include the Urban Land Institute, the National Association of Industrial and Office
, . ,
Parks, and the Building Industry As~ociati9n. Mr. Templeton has over thirty years of experience in
the planning industry. Prior to founding TPG, Mr. Templeton was a principal and past president of
a major West Coast planning firm. '
His designs and project leadership have resulted in the recognition of the following industry awards:
Five (5) Gold Nugget Grand A wards and 22 Gold Nugget Merit A wards at the Pacific Coast Builders
,
Conference. lit addition, six (6) American Planning Association Orange County SectionA wards, one
(I) Outstanding Design Award from the American Institute of Architects, and three (3) National
Association of Home builders Sensible Growth A~ards, including the Nation~IGrand Award.
j . . ,I .
Mr. Templ~ton will seNe as the Director in charge of the overall EIR effort and ensure quality
control. He has conducted numerous community participation programs, scoping meetings, and
consensus building programs resulting in resolution of conflicts between project proponents and
community groups. In most cases, Mr. Templeton is able to nearly eliminate p:1ost public concerns
through informational meetings, public presentations, project redesign, and/or development of
innovative solutions. Representative projects include the East Coyote Hills Specific Plan Community
in the City of Fullerton, Planning Area 27 in the City of Irvine, theBirch HiII~ Specific Plan in the
CityofBrea,and the Shell Oil Master Planned Community in the City ofY orba Linda, to name a few.
A listing of selected projects Mr. Templeton has completed includes:
Coyote Hills East Specific Plan EIR, Fullerton
The 280-acre project site was a producing Unocal oil field and represented the largest piece of
developable land within the City of Fullerton. The EIR analyzed the impact~ associated with the
development of an 18-hole golf course, revegetation of biologically sensitive coastal sage scrub
habitat, and 883 housing units, including custom unit lots. Major issues address,ed in the EIR include
land use, traffic, biology, noise, aesthetics~ and oil field facilities and oil wastes. The project also
included the first Habitat Conservation Plan and associated Section 10(a) permit for the California
gnatcatcher. .. .
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Planning Area 27 EIR, Irvine
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Mr. Templeton was an integral part of the Planning Area 27 EIR project. He presented two
community scoping meetings with over 350 attendees. Mr. Templeton diffused an extremely
emotionally charged communitY meeting by utilizing both pre-meeting and presentation-calming
techniques. Mr. Templeton met every two weeks throughout the EIR with Turtle Rock community
groups, the City staff, and the Irvine Company to ensure that the community concerns were being
studied to the degree, depth, artd thoroughness of the community's expectations. Individual meetings
with the planning commissioners and city council members to provide continuous updates on the
design alternatives, mitigation measures and methodology based on our subconsultants' studies. He
advised the council members of where the threshold was between a nexus on improvements and
where the community expectations were.
Marina Hills, Laguna Niguel
Taylor Woodrow Homes
A 2,600-unit residential' community situated in the coastal hillsides. Prepared detailed site plan,
specific plan and design guidelines. The land plan included a 21 O-acre county regional park, a central
community clubhouse and park facilities, as well as a pedestrian and equestrian trail system that
linked these amenities. The design centered around a balanced mix of single- and multi-family view-
oriented products that are clustered on small cul-de-sac streets.
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La Sierra Design Competition, Riverside '
IDM Corporation'
The mixed-use design and development program were the key factors in the selection of The Planning
Center and the IDM Corporation over the competing companies. One ofthe plan's main elements was
a hilltop designed in a campus setting for a hotel/conference center and administrative offices for the
Riverside Community College'District. Surrounding this core are 4- to 6-story buildings, as well as
garden offices and 1,000 apartments outside the loop road. A designer outlet mall of over 200,000
square feet along with satellite restaurants was programmed for the freeway frontage.
Beacon Hills, Laguna Niguel
Taylor Woodrow Homes
A master plan for a 336-acre, 1,024-home residential project. The development plan features mixed
residential uses sited with ocean views, recreational amenities, an extensive landscaping plan and
architectural controls. Challenges for the project included maximizing ocean view opportunities with
the coastal site and the steep existing topography. Grading design, mitigation measures and single
loading of streets became effect solutions to the problems.
Villages at Lakeshare MND
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T empletan Planning Group
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ACENDA ITEM NO. ?-
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Nicole Morse
Senior Project Manager
Nicole Morse is a Senior Project Manager in the Environmental Services Division of TPG. Ms.
Morse brings over six years of both public and private sector planning experience to TPG. Ms. Morse
has a Bachelor of Science Degree in Applied Ecology from the University of California, Irvine. She
is an active member ofthe Association of Environmental Professionals (AEP); recently having served
as Orange County Chapter AEP Executive Vice President, Newsletter Editor for three years and
currently serving on the AEP Legislative Committee. She is. currently a second year law student at
Whittier Law School specializing in environmental and land use law. 1\.1s., Morse's diverse
background provides her with a unique understanding of Planning and Zoning Law, the California
Environmental Quality Act (CEQA), and the National Environmental Policy Act (NEP A).
Ms. Morse will have. primary responsibility for project management, staff liaison, and consultant
coordination in preparation of the environmental document. Ms. Morse's diverse project experience
includes environmental documentation for small-scale residential and large planned communities,
high-rise commercial office projects, as well as industrial and mixed-use developments for both
public and private sector clients. Ms. Morse has been primarily responsible for the preparation of
environmental documents for a diverse range of projects, most notably the following:
in Central Park Supplemental EIR
City of Irvine
The Central Park Project is located on the 43-acre former Parker Hannifin industrial facility within
the 2,800 acre IBC, at the northwest corner of Jamboree Road and Michelson Drive. This project
includes the demolition of six structures consisting of approximately 204,345 square feet of existing
warehouse and 183,669 square feet of existing office use. The. project consists of a General Plan
Amendment (00308773~ PGA), Zone Change (00308775-PZC), Master Planffransfer ofDevelopment
Rights (00340287-PMPC), Tentative Tract Map 16590 (00350096-PTT), Park Plan (00348711-PPP),
and Development Agreement (0033306l6-PDA) to allow for the development of 1,380 dwelling
units, 19,700 square feet of retail use; and 90,000 square feet of office use. A transfer of development
rights is required from another location within the IBC so that the maximum trip budget established
within the mc is not exceeded.
F'riends Christian High School EIR
City of Y orba Linda
This highly complex and controversial project involvessarious issues including traffic through
existing residential neighborhoods, visual impacts associated with grading, and land use compatibility
issues. The proposed project consists of a Conditional Use Permit (CUP 2003-77) and Development
Review (DR 2003-23) to allow for the development ofa new private high school. The proposed high
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Villages at Lakeshore MND
21' .
Templeton Planning Group
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school will serve approximately 1,200 students (grade 9-12) within approximately 45 classrooms.
A total of 175,000 square feet of building space within eight buildings is being proposed. The project
also includes an athletic field for football, track and field, and soccer, a baseball stadium, soccer field,
softball field, tennis courts, hardcourts, gymnasium and pool. A total of 526 parking spaces within
two parking lots and 100 overflow parking spaces are being proposed.
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Northern Sphere Area EIR
City ofIrvine
This project consisted of a General Plan Amendment and Zone Change to allow for development of
13 ,300 dwelling units, 299,475 square feet of retail uses, and 7,693,518 square feet of Research and
Industrial facilities on approximately 3,538 acres located within the Irvine sphere of influence but
outside the City's corporate boundary. In conjunction with development of the Sphere Areas, phased
dedication of open space lands will occur in accordance with the Irvine Open Space Initiative, MOU
between the City of Irvine and The Irvine Company, ahd the NCCP Facilitation Agreement.
Planning Area 17 EIR
City ofIrvine
The proposed project consists of a General Plan Amendment (4101 O-GA), Zone Change ( 41 021-ZC),
and Master Plan (41022-MP) to allow for development of a maximum of 2,375 dwelling units,
150,000 sq. ft.. of Community Commercial development, 1,060,000 sq. ft. of Medical and Science U
development, 55,000 sq. ft. of Institutional development, a staging area, on- and off- site detention
basins, a K-8 elementary school and community and neighborhood parks, within Planning Area 17.
In addition, the project includes the permanent preservation of 659 acres within planning Areas' 17
and 28.
CllJIlPUS Center Apartments Initial Study/Addendum to the IBC EIR
City ofIrvine .
The proposed project consisted of a General Plan Amendment (00329370-PGA), Zone Change
(00329372-PZC), Conditional Use Permit (00330325-PCPU), and Park Plan (00332150~PPP) to
allow for development of a 343-unit apartment building, to decrease the non-residential square
footage by 156,935, from 55,676,025 to 55,519,090, and to increase the density to 52 units per acre
on the 6.68-acre site in Planning Area 36 in the Irvine Business Complex (mq. The project included
150 one-bedroom apartment units, 178 two-bedroom apartment units, and .15 three-bedroom
apartment units. The project will included two gated entries with access provided off of Scholarship
Street which divides the project site.
Villages at Lakeshare MND
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Temple/an Planning Group
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Culver Drive Realignment EA/MND
City of IrVine
This controversial project required extensive public participation and coordination in order to resolve
various issues including visual, impacts, increased noise levels, and the associated design of the
proposed noise mitigation. The proposed project consists of the widening of Culver Drive from a two
to four lane roadway and its realignment 50 feet to the west onto UCI property. A minimum] ] foot
wide meandering pedestrlanlbicycle trail is to be provided on the easterly side of the roadway.
Cal (IT)2 Research Facility IS/MND
University of California, Irvine
The California Institute for Telecommunications and Information Technology (Cal (IT)2) is a research
initiative focused on wireless communication sponsored by the State of CalifOl.:nia that will integrate
the efforts of the University and the private sector. In order to facilitate this research, a new 120,000
gsf(68,700 asf) facility will be constructed on the University of California, Irvine campus. The Cal
(IT)2 Research Facility will consist of 16,000 asf of specialized laboratory fablities, 46,080 asf of
interdisciplinary dry research laboratories and offices, 4,700 asf of conference and public facilities,
and ] ,920 asf of administrative space.
Vi/lages at Lakeshore MND
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T e"!pfetan Planning Group
".~".. ,.,. 1:
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Vanessa Ko
Assistant Project Manager
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Ms. Ko is an Assistant Project Manager in the Environmental Services Division of TPG. Ms. Ko has
a Bachelor of Arts Degree in Environmental Analysis and Design, and Psychology and Social
Behavior, and a Minor in Management from University of California, Irvine. Ms. Ko has completed
numerous courses related to Environmental and Urban Planning. Her associated training includes
CEQA Compliance and GIS. She is an active member of the Association of Environmental
Professionals (AEP), currently serving as Orange County Chapter AEP Membership Liaison.
Ms. Ko is primarily responsible for assisting in the preparation of Environmentallnipact Reports,
Notices of Preparation, Initial Studies, Specific Plans,.and other specialized planning studies. Ms.
Ko's work at TPG involves various tasks related to the preparation of environmental and planning
documents including extensive field work, research, and analysis, most notably the following:
The Plaza-Irvine Addendum to the IBC EIR
City of Irvine
The proposed project consists of a General Plan Amendment (003472I-PGA), Zone Change
(00347273-PZC), ConditionalUse Permit (00350902-PCPU), and Park Plan to allow for development
of two high-rise residential towers totaling 202 dwelling units, a 132,800 square foot office building U
and 12,300 square feet of retail and restaurant phase use on a 5.2-acre site within Planning Area 36
in the City of Irvine.
Leming Residential Project EIR
City of Walnut
The project consists of Tentative Tract Map 52324 to subdivide approximately 25.6 acres into 10
residential lots, averaging 2.5 acres per lot. Lot sizes range between one acre and four acres, with
pads averaging approximately 20,340 square feet. Access to the site will be provided by two cul-de-
sacs off of Gartel Drive. Manufactured slopes, where necessary, have been designed, to maintain the
rural nature of the community by utilizing landform grading, natural landscaping and rolled curbs.
Aera Energy Master Planned Community EIR
Counties of Los Angeles and Orange
This controversial project consists of a Specific Plan to develop a planned community providing for
residential housing of approximately 3,600 units,local commercial use, local and community parks,
internal greenbelts, golf course, and a possible school site on 2;935 acres in Los Angeles and Orange
Counties.
Villages at Lakeshore MND
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Templeton Planning Group
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Qualifications and References
The Templeton Planning Group staff has prepared numerous environmental documentation relating
the California Environmental Quality Act including EIRs, expanded Initial Studies, Notices of
Preparation, Findings of Fact, Statement of Overriding 'Considerations, Negative Declarations, etc. .
TPG staff specializes in master planned residential communities, many of which involve general plan
amendments arid zone changes.
7. ,.
Selected Project Experience
The list below includes specific examples of projects relevant to the City of Lake Elsinore's request
to provide environmental consulting services.
. . '..'
Shell Master Planned Community EIR
Yorba Linda, California
. Prepared an EIR for a Specific Plan consisting of2,338 dwelling
units, an 18-hole golf course, 14.1 acres of neighborhood parkland
and an elementaryschool site on the 875-acre project site. The
project also included a Habitat Conservation Plan (HCP) for the
<, I'
California gnatcatcher, coastal cactus wren, and other spe~ies
inhabiting the project site. The site has been used as an oilfield for
the last 50+ years and involved the remediation and cleanup of
petroleum wastes and equipment.
Birch Hills Specific Plan
Brea, California
The I 67-ocre project site is a former Unocal Chemical Plant and
represents a significant planning challenge. The Specific Plan .
minimizes potential risks by locating parking lots and streets over
remediated soils. The project included 570,000 square feet of
commerciaVretaiVentertainment space, 363 single-family homes,
arid 112 small-lot single-family homes intended for young, low- to
moderate-income families. The land use plan also included
extensive recreational facilities including: a 7.5.acre neighborhood
park consisting of ball fields, soccer fields, and a snack
bar/clubhouse; private recreational facilities consisting of tot lots,
volleyball court, and a pool and spa; a~d extensive on-site trails with
connections to the regional trail system.
Villages 01 Lakeshare MND
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T eniplelon Planning Group
ACENDA ITEM NO.
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Planning Area 27 Zone Change and
Master Plan EIR
Irvine, California
Planning Area 17 Zone Change and
Master Plan EIR
Irvine, California
Westminster Center Expanded Initial
Study
Weslminsler, California'
Culver Drive Realignment Expanded
Initial StudylEnvironmental Assessment
Irvine, California
The proposed project consists of a Zone Change (27368-ZC) and
Master Plan (27370-MPH) to allow for development ofa maximum
of 2,500 dwelling units, 282,292 sq. ft. of institutional nses, one ;
public neighborhood park, olie private neighborhood park, and a
community park within Planning Area 27 in the City of Irvine. Of
the 282,292 square feet of institutional uses proposed, a total of
213,892 sq. ft. was pr~viously constructed on 32 acres. In addition,
the proposed project includes the permanent preservation of over
1,000 acres of open space.
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This project consisted ofa Zone Change (41021-ZC) and Master
Plan (41022-MP) to allow for development of a maximum of2,375
dwelling units, 150,000 sq. ft. of Community Commercial
development, 1,060,000 sq. ft. of Medical and 'Science development,
55,000 sq. ft. oflnstitutional development, a staging area, on-site
and off-site detention basins, 'a K-8 school site, a community park, a
neighborhood park, and the dedication of approximately 659 acres
of open space within Planning Area 17 in the City of Irvine.
Prepared an Expanded Initial Study for the City of Westminster to
analyze potential impacts associated with IDM Corporation's request
for approval of the' Westminster Center commercial project. The
proposed project consisted of the demolition of 18 existing buildings
and the construction of approximately 399,193 square feet of retail
space and a 35,000 square foot cinema. The project was processed
under a "fast-track',' schedule which allowed construction to begin
within one year of submittal of development applications.
The proposed widening and realignment of Culver Drive between
Campus Drive and Bonita Canyon Drive was the result of an
alignment previously adopted by the Irvine City Council and the
agreement between the Irvine Residents for Responsible
Development and The Irvine Company for Turtle 'Ridge (Planning
Area 27). The project included widening the roadway to four lanes,
relocating it approximately 100 feet from the Village of Turtle Rock,
and obtaining a strip of approximately 44 feet of additional right-of-
way. The assumed roadway width is a modified secondary arterial
highway (four lane undivided roadway), 64 feet curb to curb with a
10 foot raised landscaped median. In addition, the project included
a 10 foot meandering pedestrianlbicycle trail.
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Y orba Linda Friends Church EIR
Yorba Linda, California
Westfield Shoppingtown Expansion EIR
Arcadia, California
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Glendora General Plan Update EIR
Glendora, California
Special Devices, Inc. EIR .
Los Angeles County, California .
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This highly complex and controversial project involved various
issues including traffic through existing residential neighborhoods,
visual impacts associated with grading, and land use compatibility
issues. The proposed project consists of development of additional
structures and associated improvements in accordance with an
Amended Master Site Development Plan for land owned by the
Y orba Linda Friends Church (YLFC). The proposed YLFC Master
Site Development Plan, as amended, would allow the future on-site
development of the following additional physical improvements: I) a
temporary 1,200 seat worship center; 2) a permanent new sanctuary
with a seating capacity of2,862; 3) a new 24,106 square-foot (ft)
classroom/office building; 4) new surface parking facilities; and,
5) associated infrastructure and landscaping.
The Westfield Shoppingtown Expansion EIR analyzed the potential
impacts associated with expansion and renovation of the City of
Arcadia's only regional mall. The proposed project consists ofa.
General Plan Amendment (G.P. 99-001), Zone Change (Z-99-003);
and Text Amendment (T.A. 99-006) to allow the construction of a
600,000 square foot expansion to the existing Westfield
Shoppingtown in the City of Arcadia. The total allowable gross
leaseable area after expansion would be approximately 1,522,450
square feet. The EIR focused on various environmental issues
including traffic, air quality, noise, aesthetics, and land use
compatibility.
The.General Plan revision included an update of three general plan
elements including the Land Use Element, Circulation Element, and
Housing Element. Relative environmental impacts associated with
buildoutofthe City under the General Plan Update and the buildout
conditions under the existing General Plan were documented in the
EIR. The EIR was written to provide an objective, well documented
'.analysis of the environmentaJ constraints associated with an
intensification ofland uses in specific areas of the City.
This EIR addressed the environmental effects of a non-confonning
use and structure review case to allow the continued use of a 203-
acre site, located in the community of Newhall, for a manufacturing
facility. Major issues associated with this controversial project
included it's location within the Angeles National Forest, on-site use
of various hazardous materials, and potential water quality impacts.
Villages at Lakeshore MND
27
Templeton Planning Group
ACENDA ITEM NO. ~
PACE ~-{ OF 40
Airborne Express Expanded Initial Study
Ontario, California'
Kaiser Permanente Medical Facility EIR
Irvine, California
Yale Avenue Overcrossings EIRs
Irvine, California
Coyote Hills East Specific Plan EIR
Fullerton, California
The Templeton Planning Group prepared an Expanded Initial Study
for the City of Los Angeles Department of Airports to analyze
potential impacts associated with Airborne Express' request to be
given sigoatory status and expand their operations at Ontario
International Airport. Airborne Express is currently a non-sigoatory
air carrier at the Ontario International Airport.
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Airborne Express currently operates one jet aircraft flying out of
Ontario International Airport. As part of the proposed project,
Airborne Express requested approvals to allow the operation of one
additional DC-8 out of Ontario International Airport within the next
five (5) years. Additional support ground and feeder aircraft
operations were also associated with the proposed project. Major
issues analyzed in the Expanded Initial Study included Noise, Traffic
and Air QUalitY.
The Templeton Planning Group prepared an Environmental Impact
Report for the City of Irvine to analyze potential impacts associated
with the construction of a 1.3 million square foot medical complex
including a 4 I 6 bed hospital, 460,000 square feet of medical office,
50,000 square feet of administrative office as well as surface and
structured parking to accommodate approximately 5,283 vehicles.
Major issues analyzed in the EIR included traffic, air quality,
aesthetics, and public health and safety.
Two EIR's were prepared for the City ofIrvine to evaluate the
impacts of constructing the Yale Avenue overcrossings of the 1-405
Freeway and/or the A.T.&S.F. Railway. Major environmental issues
included the diversion of traffic onto alternative roadways, the
evaluation of accident potential at the overcrossings, noise impacts
to adjacent homes and cumulative impacts.
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The 280-acre project site is a producing Unocal oil field and
represents the largest piece of developable land within the City of
Fullerton. The EIR analyzed the impacts associated with the
development ofim l8-hole golf course, revegetation of biologically
sensitive coastal sage scrub habitat, and 883 housing units, including
custom unit lots. Major issues addressed in the EIR include land
use, traffic, biology, noise, aesthetics, and oil field facilities and oil
wastes. The project also included the first Habitat ConserVation
Plan and associated Section 10(a) permit for the California
gnatcatcher.
Villages at Lakeshore MND
28
Templeton Planning Group
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ACENDA ITEM NO.
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Jumpa Regional Equestrian Center
County of Riverside
Wes!minster Center Expanded Initial
Study
Westminster, California
Fairfield Ranch Expanded lnitial Study
Chino Hills, California
Prepared a Conceptual Land Use Plan, EIR arid Infonnation Booklet
for the creation of a 148-acre County Regional Park Program on
equestrian activities in western Riverside County north of Nor co.
The plan includes the first horse racing track and wagering facility
building in nearly 50 years. Proposed facilities including an
equestrian racing facility and stadium With a rIlUlti-use infield,
equestrian training facilities With accessory stalls and practice rings
for pnblic use, exhibit halls and a hotel. "
The Templeton Planning Group prepared an Expanded Initial Study
for the City ofWestrninster to analyze potential impacts associated
with IDM Corporation's request for approval of the Westminster
Center conunercial project. The proposed project consisted of the
demolition of 18 existing buildings and the c6nstruction of
approximately 399,193 square feet ofretait sPace and a 35,000
square foot cinema. The project was processed under a "fast-track"
schedule which allowed construction to begin-Within one year of
submittal of development applications. '
This Expanded Initial Study addressed the environmental impacts of
an Amended Final Development Plan and associated tract maps to
allow the construction of787 single-family homes on 108.6 acres,
37.5 acres of Business Park, 1.8 acres of Village Conunercial, 30.9
acres of Conunercial Recreation, and 54.8 acres of Open Space on
245.8 acres. A number of critical issues were. addressed including
traffic and circulation, noise, agricultural resources, and location of a
portion of the project Within the 100-year flood plain.'
Villoges at Lakeshare MND'
29
Templeton Plonning Group
AOENDA ITEM NO. J.
PAGE ?-7 OF __~Q.....,
7.2
List 01 Relerences
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l/ City ofIrvine
Community Development Department
One Civic Center Plaza
Irvine, CA 92623-9575
Contact: Pam Davis, Senior Planner, Phone: (949) 724-6386
. Planning Area 17 EIR
. Campus Center IS/Addendum
. The Plaza - Irvine IS/Addendum
Contact: Michael Philbrick, Senior Planner, Phone: (949) 724-6345
. Central Park Supplemental EIR
l/
.city of Arcadia
240 West Huntington Drive
Arcadia, CA, 91066-6021
Contact: Donna Butler, Development Services Director, Phone: (626) 574-5423
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. Westfield Shoppingtown Expansion EIR
l/ City of Anaheim
200 South Anaheim Boulevard, Suite 162
Anaheim, CA 92803
Contact: Sheri Vander Dussen, Planning Director, Phone: (714) 765-5010
. Northern Sphere Area EIR
Villages at Lakeshare MND
30
Templeton Planning Group
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AGENDA ITEr~?? ;;J.
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Statement of Offer
. The Mitigated Negative Declaration (MND) for the Villages at Lakeshore Project will be prepared
in accordance with the scope of work, schedule, and terms and conditions presented in this proposal.
The scope of work and budget is subject to the following terms and conditions:
A. Preparation of the MND in accordance with the work prograni. outlined in this
proposal.
B. The Screencheck Draft Final MND, budget will be subject to review and modification
if additional work is required and/or costs are incurred as a result of any of the
following:
.
Completion of the MND is ,extended more than 60 days beyond the schedule
presented in the proposal (or alternative schedule agreed upon with the City
at contract execution) for reasons beyond the control of the Templeton
Planning Group or its subconsultants;
.
Ii1formation developed during the MND and scoping process from the City's
required the scope of work to be modified; and
.
, Modifications are made to the project by the City, subsequent to the approval
of the contract, which necessitate making substantial and material changes in
the MND analysis, text, tables, maps, or figures.
The budget for the Final MND is an estimate only, based on approximately 40 hours for preparation.
of Response to Comments. The estimated budget assumes that no additional basic research will be
required to respond to comments, that the comments will be directed at the adequacy ofthe MND, and
that the comments will be compiled by the Client and transmitted in writing to the consultant.
Modification to the scope of work, budget and time frame may be necessary if comments received
from agencies or the general public require substantially increasing the scope of impacts and issues
which the MND has addressed. Ii1 addition, the reimbursables budget is an estimate only and will be
billed at cost.
Villages at Lakeshare MND
. Templetan'Planning Group
31
AGENDA 1TEiIl NO. 'J. .
PAGE~q OF 1..\ 0
ACKNOWLEDGMENT
This proposal shall be valid for a period of 90 days from the time of submittal. All work performed
will be billed on a monthly basis as tasks are completed and will be due within 30 days of the invoice
date. Mr. Peter Templeton, Principal of the Templeton Planning Group, is authorized to negotiate
contracts with the City. He can be reached at the Templeton Planning Group, 1470 Jamboree Road,
Suite 200, Newport Beach, California, 92660, (949) 718-0640.
Please contact Mr. Peter Templeton or if you require any additional information or clarification
regarding this proposal.
/t?//~/t?5
Da'te
Approved and consented to on
. , 2005 by:
City of Lake Elsinore .
Name
Title.
ViI/ages at Lakeshore MND
32
Templeton Planning Group
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.~~G~NDA !TEM NO.
PAiJfE~()F 4D
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CITY OF LAKE ELSINORE
REPORT TO CITY COUNCIL
TO:
MAYOR AND CITY COUNCIL
FROM:
ROBERT A. BRADY, CITY MANAGER
SUBJECT:
NOVEMBER 8, 2005
AUTHORIZATION TO PREPARE CEQA
COMPLIANCE DOCUMENTS FOR TENTATIVE
TRACT MAP NO. 25475, TENTATIVE TRACT MAP
NO. 33725, RAMS GATE SPECIFIC PLAN
AMENDMENT NO. 4, AND GENERAL PLAN
AMENDMENT NO. 2005-04
DATE:
BACKGROUND
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The City of Lake Elsinore serves as the lead agency to evaluate the
environmental impacts of development projects proposed within the City. The
Community Development Department is responsible for the preparation of the
necessary information and, depending on the scope and size of the project, will
. either prepare the environmental documents in-house or have a consultant
prepare. the documents and studies. The cost of preparing the environmental
analysis is paid for by the project applicant through the application fee process.
DISCUSSION
Due to the scope of this project, staff has requested Albert A. Webb Associates
prepare the CEQA documents and studies for Tentative Tract Map No: 25475,
Tentative Tract Map No. 33725, Ramsgate SPA #4 and OPA 2005-04. The
proposed cost of preparing the environmental review is $44,000.
FISCAL IMPACT
The cost of preparing the environmental review will be paid by fees collected
from the applicant through the City's cost recovery program. All staff
administrative time and consultant costs are paid from the applicant's fees.
There is no cost to the City.
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Agenda Item No. :3
Page 1 of "7
REPORT TO CITY COUNCIL
NOVEMBER 8, 2005
PAGE20F2
RECOMMENDATION
Staff recommends that the City Council authorize Albert A. Webb Associates to
prepare the 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 in the amount of $44,000.
PREPARED BY: Rolfe Preisendanz,
Director of Community Development
APPROVED FOR
AGENDA LISTING:
Attachment:
Vicinity Map.
Albert A. Webb Proposal, dated September 8, 2005
Agenda Item No. .,
PageZof 7
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REPORT TOCITY COUNCIL
NOVEMBER 8, 2005
WEBB CONTRACT
. VICINITY MAP
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AGENDA 11::1.'! NO.
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AL B E R T
A. WEBB ASSOCIATES
3788 MCCRAY STREET' RIVERSIDE. CA 92506
PHONE: 951.686.1070' FAX: 951.788.1256
WWW.WEBBASSQCIATES.COM
W.O 03-0329
File No. 4603.0001 U .
September 8,2005
Mr. Rolfe M. Preisendanz, Planning Manager
City of Lake Elsinore
130 South Main Street
Lake Elsinore, CA 92530
RE: Proposal for Preparation of CEQA Compliance Documents
Ramsgate SPA #4, TIM 25475? TR 33725, Related GPA
Dear Mr. Preisendanz:
AI~~~lf!Atsoci~\es i~Yp~wi6 pic!~em ili\srprdPdhffof ~nifiletion of
CEQA documents neCeS to evalua.te. the potential environmental impacts of
Tentative Tract No.. . 2175, Amen. . ~(). I, Tentative Tract No. 33725 and the
related general pI / endment aD. am.endmerlt of the Ramsgate Specific Plan. It is our
:~e::d~;~ c PI~(T r~t 4;;;:t:a:~~b:~:s;~~~~:i~~ u
33725); an' . endment tf( specific t\.j l@I.me~IM~W:PP~Hrrty and to
amend the <\.qcUlll"mt refle~currenf evelopment plans; and a related amendment of
the City's Ci~la on Element........
Our proposed scope of work, as detailed in Appendix A, and budget includes the
preparation of an Initial Study and related technical studies that comply with the
provisions of the California Environmental Quality Act, the State CEQA Guidelines and.
the City of Lake Elsinore's Procedures for Implementing the. State CEQA Guidelines.
Completion of an air quality analysis and a noise impact study are included as part of
our scope of work. We have not included the costs associated with preparing a traffic
study; biological surveys including focused surveys and wetlands delineations; cultural
resources surveys; a hydrology report; a Phase I Environmental Assessment; and a
geotechnical study. The project applicant has advised us that the subconsultants
preparing these reports will be paid directly by the project applicant. Webb Associates
win, however, coordinate the preparation of these reports with the subconsultants and
will review the reports for adequacy before forwarding completed reports to the City.
If additional technical studies are required by the City or due to the findings
contained within the above-listed technical studies, Webb Associates will coordinate 3
iI(,ami.. rr~~.i NO.
PAGE 4- OF '1( J
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CIVIL.
ENGINEERING
WATER
RESOURCES
ENGINEERING
ASSESSMENTI
SPECIAL TA"X
CONSULTING
PLANNING &
ENVIRONMENTAL
SERVICES
CONSTRUCTION
MANAGEMENT
AND INSPECTION
TRAFFIC &
TRANSPORTATION
ENGINEERING
LAND
SURVEYING
PUBLIC
WORKS
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Mr. Rolfe M. Preisendanz
September 8, 2005
Page 2 of2
with the appropriate subconsuItants 'and advise,the City of the cost of these studies. The
cost for these stUdies will be an additional expense, 'above our estimated budget.
We propose to provide our services on a lump sum basis, with an estimated total
budget for a single project design of $44,000. This budget reflects the completion of an
Initial Study and ,technical studies leading to adoption of a Negative Declaration or
Mitigated Negative Declaration and the preparation of an Addendum to the
Supplemental Environmental Iri1pact Report previously prepared for the Ramsgate
Specific Plan.
Webb Associates. has extensive experience' m the preparation of CEQA
compliance docuruents for both public and private clients and looks forward to
providing our expert services to the City of Lake Elsinore.
Please authorize completion of the above-described scope of work and budget by
. .. ,. - .
signing a copy of this letter and returning it to me, or through provision of a separate
written authorization to proceed.
Should you have any questions or require any additional inf()rmation regarding
this proposal, please feel free to call me at (951) 248-4260.
Sincerely yours,
ALBERT A., WEBB ASSOCIATES
~~/;J724#
. Richard J. MacHott
Principal Environmental Planner
Attachment
cc: Kristine A. Zortman, White Rock Acquisition, L.P.
Completion ofthe scope of services for the preparation of CEQA compliance documents
by Albert A. Webb Associates, for the Ramsgate SPA #4, TTM 25475, TR 33725, Related
GPA project, described above, as set forth in the attached 'Exhibit "A" with a budget of
$44,000.00 is hereby authorized by the City of Lake Elsinore: .
By:
Date:
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ACENDA ITEM NO. 3
PACE.5 OF 1
APPENDIX A
CITY OF LAKE ELSINORE
Ramsgate SPA #4, TTM 25475,TR 33725, Related GPA
. ..
CEQA Compliance
Scope of Work
.. Confer and coordinate with City of Lake Elsinore ("City") staff and project applicant
at a maximum of three meetings. .
. Collect and review relevant local agency information. .
· Review previous environmental documents of the Ramsgate Specific Plan and assess
the project as it relates to previously identified environmental concerns, adopted
mitigation measures, any new environmental concerns not previously identified and .
proposed mitigation measures. '.
. Field survey of the project site~
. Prepare project description and description of environmental setting.
.. Provide air quality analysis and noise study prepared by Albert A. Webb Associates.
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. Coordinate the preparation of traffic study; biological surveys including focused
surveys and wetlands delineations; cultural resources surveys; a hydrology report; a U
Phase I Environmental Assessment, geotechnical study, and LEAPS application and
compliance analysis with project applicant's subconsultants and review reports for
adequacy prior to submittal of reports to City.
. Prepare Draft Initial Study pursuant to California Environmental Quality Act, the
State CEQA Guidelines, and the City's Procedures for Implementing the State
CEQA Guidelines and utilize the City's initial study checklist. The initial study will
summarize and incorporate findings from technical reports, and the LEAPS
application and compliance analysis; and identify appropriate mitigation measures on
subjects of potential adverse environmental impact.
. Complete draft Mitigation Monitoring Program.
. Prepare. revised Initial Study and Mitigation Monitoring Program per City's
comments.
. Prepare an Addendum to the Supplemental Environmental Impact Report (EIR)
previously prepared for the Ramsgate Specific Plan.
. Prepare the Notice of Completion, cover letter and mailing list for distribution of the
Notice of Intent to Adopt an Addendum to the Supplemental EIR and the
C:\Documents and Settings\Cdonohoe\Local Settings\Temporary Internet Files\OLK8\Ramsgate SPA CEQA ProposaI9~8-05-
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Addendum to the Supplemental EIR, including the draft Initial Study and Mitigation
Monitoring Program,Jor public review.
· Provide 45 copies of the Addendum to the Supplemental EIR, including the draft
Initial Study and Mitigation Monitoring Program and distribute for 3D-day public
review period. ..
· Prepare a formal response to comments received during the 3D-day public comment
period on the Addendum to the Supplemental EIR and the Notice of Intent. to
Adopt an Addendum to the Supplemental EIR.
· Provide 5 copies of a "Screen check" Addendum to the Supplemental EIR with
technical studies, 5 copies of revised Addendum to the Supplemental EIR in
response to City staff comments and a maximum of 20 copies of the "final"
Addendum to the Supplemental EIR with technical studies for the public hearing
process and a maximum of 5 additional copies of these documents, if needed.
· Attend a total of three public hearings before the City Planning Commission and/or
City Council.
EXCEPTIONS:
The above scope of work does not include the preparation or publication of public
notices, the posting of notices in the office of the Riverside County Clerk or the State
Clearinghouse or distribution of documents for agency/public review; any application or
permit related fees; or the cost of any posting expenses or fees such as required by the
County Clerk for posting of the Notice of Determination. Additionally, it does not
include the preparation of any. additional technical surveys or reports that are determined
to be required to complete the project due to the results of the cultural resources and
biological surveys or City requirements; or due to comments received during
agency/public review of the CEQA documents. .
C:\Documents and Settings\Cdonohoe\Local Senings\Temporary Internet FiJes\OLK8\Ramsgale SPA CEQA Proposal 9-8-05 _
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CITY OF LAKE ELSINORE
REPORT TO CITY COUNCIL
TO:
MAYOR AND CiTY COUNCIL
FROM:
ROBERT A; BRADY, CITY MANAGER
DATE:
NOVEMBER 8, 2005
SUBJECT:
AMENDED COMMUNITY FACILITIES DISTRICT
REPORT FOR CFD NO. 2005-2 (ALBERHILL RANCH)
BACKGROUND
On August 23, 2005, a public hearing was held to form the districtand authorize
the levy of special taxes. The CFD report dated August 15,2005 was presented to
(\ City Council at that time.
DISCUSSION
An amended CFD report has been prepared. City Council needs to approve the
amended report prior to the business item approving the issuance of bonds related
to this CFD. There are only three changes to the report which are all found on
page 4 of the report. Three additional items where listed on the Estimated
Facilities Cost list: ParklRecreation Improvements, Park Land Acquisition, and
Storm Drain Impact Fees. These items were inadvertently left offby the
developer's consultant.
FISCAL IMPACT
None
RECOMMENDATION
It is recommended that the City Council approve the amended CFD report for CFD
(\ 2005-2. .
AGENDA ITEM NO. t..t
PAOE-L-OF )':.0
REPORT TO CITY COUNCIL
NOVEMBER 8, 2005
PAGE 2
PREPARED BY:
APPROVED FOR
AGENDA BY:
MATT N. PRESSE
DIRECTOR OF MINISTRATIVE SERVICES
ACENDA ITEM NO. l1.
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. Community,:
Facilities. District
. Report (Amended)
. . for the
City of lake Elsinore
Community Facilities District
No. 2005-2 (Alberhill Ranch)
Prepared by:
II Harris & Associates
August 15, 2005
(Amended November 1, 2005)
AGENDA ITEM NO. q
PACE 3 OF-'S!l...:
City of lake Elsinore
CFD No. 2005-2 (Alberhill Ranch)
COMMUNITY FACILITIES DISTRICT REPORT
August 15, 2005
Table of Contents
Page
I. Introduction ................:.:............................................................. 1
II. Project Description (Amended November 1,2005).......................... 2
III. Description of Facilities (Amended November 1,2005).................. 3
IV. Cost Estimate (Amended November I, 2005) .................................. 4
V. Bonded Indebtedness and Incidental Expenses ....................~.... 5
VI. Rate & Method of Apportionment of the Special Tax............... 6
VII. Boundaries of CFD No. 2005-2 ............................................... 10
. VIII. General Terms and Conditions................................................. II
IX. Certification .............................................................................. 12
Exhibit A - Boundary Map
Exhibit B - Rate and Method of Apportionment
Exhibit C - Property Owner List
Exhibit D - Effective Tax Rate
Q,IELSINORElCFD 2005-2 Albe,hill (Castle & Cook)"eportlAmended CFD Report 2005-2 (Albe,hill Ranch) II-OI-05.doc
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City of lake Elsinore
CFD No. 2005-2 (Alberhill Ranch)
COMMUNITY FACILITIES DISTRICT REPORT
, August 15, 2005
Page 1
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I. Introduction
WHEREAS, the City Council of the City of Lake Elsinore (hereinafter referred to as the .','Council"),
pursuant to the provisions of the Mello-Roos Community Facilities Act of ] 982,)eing Chapter 2.5,
Part ], Division 2, Title 5 of the Government Code of the State of California (hereinafter referred to
as the "Act") did establish its intentions to form a community facilities district, consisting ,of the
territory described in Exhibit A, and did expressly order the filing of a writtert "Report" with the
Board for the proposed community facilities district. This community facilities district shall
hereinafter be referred to as Community Facilities District No. 2005-2 of the City of Lake Elsinore
(Alberhill Ranch) (hereinafter referred to as CFD No. 2005-2); and
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WHEREAS, the Resolution of Intention of the City Council of the City of Lake Elsinore to establish
Community Facilities District No. 2005-2 of the City of Lake Elsinore (Alberhill Ranch), to.
authorize the levy of a Special Tax to pay the costs of acquiring, constructing, or'maintaining certain
facilities and expenses of CFD No. 2005-2 and to pay debt service on 'bonded indebtedness, did
direct that said Report generally contain the following: ' .
a. A brief description of the public facilities, by type, which will be required to adequately meet the
needs ofCFD No. 2005-2; and
b. An estimate of the cost of providing those public facilities, including the cost of environmental
evaluations of such facilities, and an estimate of the fair and reasonable cokt of any incidental
(\ expenses to be incurred. ' , I
NOW, THEREFORE, I, Dennis A. Anderson, authorized representative' of Hitrris & Associates,
pursuant to the provisions of the Act, do hereby submit the following report.
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City of lake Elsinore
CFD No. 2005-2 (Alberhill Ranch)
COMMUNITY FACILITIES DISTRICT REPORT
August 15, 2005
Page 2
II. Project Description
(Amended November 1, 2005)
Pursuant to land use e~titlements approved by tbe City of Lake Elsinore (tbe "City") and Castle &
Cooke (the "Developer"), the Developer plans to construct 1,181 single-family dwelling units, 389
multi-family dwelling units, with associated parks and recreation facilities known as Alberhill Ranch.
The City has proposed to form one community facilities district for tbe purpose of financing certain
infrastructure and public facilities and maintenance for tbe benefit of Alberhill Ranch.
CFD No. 2005-2 encompasses approximately 494.1 gross acres of land. A summary of the
development phases witbin CFD No. 2005-2 and the estimated number of units witbin each
improvement area is shown below:
Single Multi
Improvement Development Family Family Total
Area Phase Acres Units Units Units
A 1,2,3.5 132.0 442 0 442
B 4.6.7,8 236.1 482 160 642
C 9.10.11 126.0 257 229 486
494.1 1181 389 1570
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CFD No. 2005-2 will be formed to finance the acquisition and/or construction of street, streetscape,
and storm drain improvements, park land and park/recreational improvements, City fees, and fees U
and improvements. of the Elsinore Valley Municipal Water District and improvements of tbe
California Department of Transportation (CaITrans). See Section III for a list of facilities to be
acquired and maintenance services to be funded.
Amendment: Added reference to park land and park/recreational improvements and CalTrans.
Q:\ELSINORE\CFD 2005-2 Alberhill (Castle & Cook)\report\Amended CFD Report 2005-2 (Alberhill Ranch) 11-Of-05.doc
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CFD No. 2005-2 (Alberhill Ranch)
COMMUNITY FACILITIES DISTRICT REPORT
August 15, 2005
Page 3
III. Description of Facilities & Services
(Amended Novembef'1, 2005)
Facilities
A community facilities district may provide for the 'purchase, construction, expansion or:
rehallilitation of any real or other tangible property with an estimated useful life 'of five (5) years or
longer which is necessary to meet increased demands placed upon local agericies as a result of
development occurring within a .community facilities district. In addition, a community facilities
district may provide for the on-going costs for services and infrastructure maintenance for police,
fire, parks, open space, parkways and storm drain facilities, as long as those services are in addition
to services already received by the property within the district.
The facilities described in the Report are all facilities which the City is authorized, pursuant to an
agreement meeting the requirements of Section 53316.2.' of the Act or otherwise (the "Joint
Community Facilities Agreement") to own, construct, or finance, and which are required to
adequately meet the needs of CFD No. 2005-2. The actual facilities described herein are those
currently expected to be required to adequately meet, in part, the needs of CFD No. 2005-2. Because
the actual needs of CFD No. 2005-2 arising as development progresses therein may differ from those
currently anticipated, the City reserves the right to modifY the actual facilities proposed herein to the
extent the City deems necessary, in its sole discretion, to meet those needs.
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The proposed facilities for CFD No. 2005-2 include all or a portion of design, construction, indirect
costs and administration relating to the following improvements associated with Vesting Tentative
Map 28214 and30836:
I. Street Improvements (including streetscape)
2. Storm Drain Improvements
3. ParklRecreational Improvements (including park land acquisition)
CFD No. 2005-2 will also be authorized to finance City capital improvement fees imposed pursuant
to City fee programs and fees and improvements ofthe Elsinore Valley Municipal Water District and
improvements of the California Department of Transportation (CaITrans).
In addition to the improvements above, the CFD is anticipated to cover the .on-going costs for
maintenance of the public parks, open space and storm drain improvements.
Amendment: Added reference to ParklRecreational Improvements (including park land
acquisition) and Caltrans improvements.
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ACENDA ITEM NO. ~
PAGE 7 OF 2;0
City of lake Elsinore
CFD No. 2005-2 (Alberhill Ranch)
COMMUNITY FACILITIES DISTRICT REPORT
August 15, 2005
Page 4
IV. Cost Estimate
(Amended November 1,2005)
The cost estimate for the facilities described in Section III is set forth below. The actual facilities to
be, financed will ultimately be determined in accordance. with the Funding, Construction and
Acquisition Agreement between the City and Developer.
Community Facilities District No. 2005-2
(Alberhill Ranch)
Estimated Facilities Costs
Facilities Cost Estimate
Storm Drain Improvements $ 5,767,552
Traffic Signals $ 2,044,934
Water & Sewer Improvements $ 13,441,440
Street Improvements (including CalTrans) $ 18,838,024
Streetscape Improvements $ 1,646,318
Park/Recreational Improvements"
$ 2,000,000
Park Land Acquisition
Value to be determined
Construction Bonds, Fees, "Engineering
$ 8,846,573
City Impact Fees
Library Fee
Traffic Impact,Fee .
Fire Mitigation Fee
MSHCP Fee
DAG fee
Storm Drain Impact Fee
$ 8,725,307
$ 235,500
. $ 1,872,006
$ 235,500
$ 2,361,004
$ 1.570,000
$ 2,451,297
EVMWD Impact Fees
Water Fees
Sewer Fees
$ 15,988,880
$ 8.523.530
. $ 7,465,350
Total Estimated Cost
$ 77,299,028
plus Park land Value
It should be noted that the facilities cost estimates include all indirect costs such as project
management, design engineering, right-of-way engineering, soils engineering and testing, plan
checking, permits, fees, advertisement and award costs, and inspections. Actual costs may differ
from the amounts shown, which are estimates only and are not intended to be maximum limits in
what may be expended.
Amendment: Storm Drain Impact Fees have been included as an eligible cost. The developer
inadvertently omitted these costs from the original request. Also, the park costs have been clarified
and reference to the CalTrans costs has been added.
Q:\ELSINOREICFD 2005-2 Alberhill (Castle & Cook)lreportlAmended CFD Repon 2005-2 (Alb.,hill Ranch) I I-OI~e!NDA ITEM NO.
PAGE 8'
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City of lake Elsinore
CFD No. 2005-2 (Alberhill Ranch)
COMMUNITY FACILITIES DISTRICT REPORT,
August 15, 2005
Page 5
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V. Bonded Indebtedness and Incidental Expenses
A. Projected Bond Sales
The maximum authorized bo~ded indebtedness for CFD No. 2005-2 is as follows:
. Improvement Authorized
Area Bond Amount
A $ 28,000,000
B $ 36,000,000
C $ 26,000,000
, . $ 90,000,000
(\
B. Incidental Bond Issuance Expenses to be included in tbe Proposed Bonded Indebtedness
I
Pursuant to Section 53345.3 of the Act, bonded indebtedness may include all costs and estimated
costs incidental to, or connected with, the accomplishment of the purpose for which the proposed
debt is to be incurred, including, but not limited to, the costs .of legal, fiscal, and financial
consultant fees; bond and other reserve funds; discount fees; interest on any bonds of the district
due and payable prior to the expiration of one year from the date of completion of the facilities,
not to exceed two years; election costs; and all cost of issuance of the bonds, including, but not
limited to, fees for bond counsel, costs of obtaining credit ratings, bond insurance premiums, fees
for letters of credit, and other credit enhancement costs, and printing costs. For.the bonds
proposed to be issued by CFD No. 2005"2, capitalized interest is estimated 'for 12 months, the
reserve fund is equal to the highest debt service payment in any year, and all other incidental
bond issuance expenses at approximately 5.0 percent of the face amount of the bonds:
C. Incidental Expenses t~ be Included in tbe Annnal Levy of Special Taxes' ','
Pursuant to Section 53340 ofthe Act, the proceeds of any special tax may only be used to pay, in
. whole ,or part, the cost of providing public facilities, services and incidental expenses. As
defined by the Act, incidental expenses include, but are not limited to, the cost of planning arid
designing public facilities, to be financed, including the cost of environmental evaluations of
those facilities; the costs associated with the creation of the district, issuance of bonds,
determination of the amount of taxes, collection of taxes, payment of taxes, or costs otherwise
incurred in order to carry out. the authorized purposes of the distriCt; any other expenses
incidental to the construction, completion, and inspection of the authorized' work; and .the
retirement of existing bonded indebtedness. While the actilal cost of administering CFD'No.
2005-2 may vary, it is anticipated tbat tbe amount of Special taxes wbicb can be collected will be
sufficient to' fund at least $25,000 in annual administrative expenses.
{\
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AGENDA ITEM NO.
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City of Lake Elsinore
CFD No. 2005-2 (Alberhill Ranch)
COMMUNITY FACILITIES DISTRICT REPORT
August 15, 2005
Page 6
VI. Rate and Method of Apportionment of the Special Tax
u
All of the property located within CFD No. 2005-2, unless exempted by law or by the Rate and
Method of Apportionment, shall be taxed for the purpose of providing necessary facilities to serve
CFD No. 2005-2. 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." The Special Tax "may be based on benefit received by parcels of real property, the
cost of making facilities or authorized services available to each parcel or other reasonable basis as .
determined by the legislative body," although the Special Tax may not be apportioned on an ad
valorem basis pursuant to Article XTIIA of the California Constitution.
. As shown in Exhibit B, the Rate and Method of Apportionment approved in the Resolution of
Intention provides information sufficient to allow each property owner within CFD No. 2005-2 to
estimate the maximum annual Special Tax he or she will be required to pay. Sections A through C,
below, provide additional information on the Rate and Method of Apportionment of the Special Tax
for CFD No. 2005-2, as is proposed to be adopted in the Resolution of Formation for CFD No. 2005-
2. Please note that all capitalized terms used herein, unless otherwise indicated, shall have the
meanings defined in the Rate and Method of Apportionment.
A.. Explanation for Special Tax Apportionment
When a community facilities district (a "CFD") is fortned, a special tax may be levied on each
parcel, of taxabl.e property within the CFD 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 CFD. This special tax must be apportioned in a
reasonable manner; however, the tax may not be apportioned on an ad valorem basis.
When more than one type ofIand use is present within a CFD, several criteria may be considered
when apportioning the special tax. Generally, criteria based on building square footage, acreage,
and land use are selected, and categories based on such criteria are established to differentiate
. between parcels of property. These categories are a direct.result of the projected. product mix,
and are reflective of the. proposed land use types within that CFD. Specific special tax,levels are
assigned to each land use class, with all parcels within a land use class .assigned the same special
tax rate.
The facilities to be funded by CFD. No. 2005-2 are generally regional in-tract infrastructure as
well as qff-site infrastructure improvements. .These improvements are required for the orderly
development of the property within CFD No. 2005-2. Each property will benefit from the
improvements in several ways: . I) traffic circulation, 2) site access, 3) recreational amenities, 4)
access to utilities, and 5) overall quality of life enhancement. The special tax can be apportioned
using several different factors related to each property, including density, land area, traffic
generation, and building square footage.
Three Improvement Areas have b~en defined.
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Q:\ELSINORE\CFD 2005-2 Alberhill (Castle & Cook)\report\Amended CFD Report 2005-2 (Alberhill Ranch) 11-Ol-05.doc
ACENDA ITEM NO.
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City of lake Elsinore
CFD No. 2005-2 (A1berhlll Ranch)
COMMUNITY FACILITIES DISTRICT REPORT
August 15, 2005
Page 7
Land Use Types have been eSlablished for Developed Property in each Improvemenl Area, as
shown in Table I below. The Special Tax for a single family residential property will vary
directly with the amount of residential floor area on each parcel. The Special Tax for multi-
family residential property will be determined by the number of units within the complex. The
Special Tax for non-residential property will be determined based on the acreage of the parcells).
The Special Tax for Undeveloped Property and Provisional Undeveloped Property will be
determined by the acreage of the property.
Based on the types of public facilities that are proposed for CFD No. 2005-2 and the factors
described above, the Special Taxes assigned to specific land uses are generally proportionate to
the relative benefits received by them, and, accordingly, the Special Taxes in CFD No. 2005-2
can be considered fair and reasonable.
In addition, a maintenance special tax (Special Tax for Services) has been established to cover
the on-going costs of maintenance of the parks, open space and public storm drain system
required from new development. The Special Tax for Single Family and Multi-Family
Residential Property will be based on a per unit basis. The area of the property will determine
the Special Tax for Non-Residential Property.
B. Maximum Special Tax Rates
Special Tax for Facilities
(\
Table I, on the following page, lists the Assigned Special Tax rates for fiscal year 2006-07
that are proposed to be levied against Developed Property within CFD No. 2005-2. The
Maximum Special Taxes for developed property cannot exceed the rates shown in Table I for
fiscal year 2006-07, except when the Backup Special Tax is. used as discussed in Section C.
below. The Maximum Special Tax that may be levied against Undeveloped Property and
Provisional Undeveloped Property cannot exceed the rates shown in Table I for fiscal year
2006-07. The Assigned Special Taxes and Maximum Special Taxes wiII increase at a rate of
two percent per year.
Each year, the City Council shall levy the Special Tax, 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.
Special Tax for Services
Table 2, on the following page, lists the rates for the Maximum Special Tax for Services for
fiscal year 2005-06 that are proposed to be levied against property within CFD No. 2005-2.
The Maximum Special Taxes will increase at a rate of two percent per year.
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C. Backup Special Tax
Pursuant to the Rate and Method of Apportionment, the Maximum Special Tax for Facilities for
Developed Property 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.
Q:\ELSINORE\CFD 2005-2 Alberhill (Castle & Cook)\report\Amended CFD Report 2005-2 (Alberhill Ranch) 11-OI.05.doc
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ACENDA ITEM NO.
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City of lake Elsinore
CFD No. 2005.2 (Alberhill Ranch)
COMMUNITY FACILITIES DISTRICT REPORT
August 15, 2005
Page 8
D. Accuracy oflnformation
In order to establish the Assigned Special Tax rates, the Backup Special Tax and the Maximum
Special Tax rate for Developed Property, Undeveloped Property, and Provisional Undeveloped
Property as set forth in the Rate and Method of Apportionment for each Improvement Area for
CFD 2005-2, the Special Tax Consultant has relied on information including, but not limited to,
absorption, land use types, building square footage, and net taxable acreage which were provided
to the Special Tax Consultant by others. The Special Tax Consultant did not independently
verifY such data and disclaims responsibility for the impact of inaccurate data provided by others,
if any, on the Rate and Method of Apportionment for CFD No. 2005-2, including the inability to
meet the financial obligations of CFD No. 2005-2.
TABLE 1
Special Tax for Facilities - Assigned Special Taxes for Developed Property
For Fiscal Year 2006-07
Community Facilities District No. 2005-2 .
Improvement Area A
Land Use Tvpe Buildinl! Square Footage Rate
Single Family Property Greater than 3,650 $4,566 per Single Family Unit
Single Family PropeDy 3,151 3,650 $4,280 per Single Family Unit
Single Family ProneDy 2,551 3,150 $3,373 ner Sinole Familv Unit
Single Family PropeDy 2,051 2,550 $3,220 ner Single Family Unit
Single Familv Pronertv 1,851 2,050 $2,896 ner Sin.le Familv Unit
Single Familv Pronertv Less than or eaual to 1,850 $2,753 ner Sin.le Familv Unit
Apartment ProoeDy N/A $21,330 oer Acre
Non.Residential Prooertv N/A $21 330 ner Acre
Improvement Area B Zone 1 Zone 2:
Land Use T . Buildine: Square Footape Rat. Rate
Single Family Property Greater than 4,250 $4,938 per Single Family Unit $4,938 per Single Family Unit
Sin e Familv Pro;;;.:tV 3,951-4,250 $4,661 per Sin. e Familv Unit $4,66 mer Sin. e Familv Unit
Sin. e Familv Prooertv 3,651 3,950 $4,356 ner Sin e Familv Unit $4,356 oer Sin e Familv Unit
Sin e Familv p~ 3,351 - 3,650 . $4,280 per Sin. e Familv Unit $4,280;;<r Sin. e Family Unit
Sing e Familv Pronertv 3,051 3,350 $3,564 ner Sin e Familv Unit $3,564 per Sin~ e Family Unit
Single Familv Pronertv 2,551 3,050 $3,373 ner Sin, e Familv Unit $3,373 ner Sin, e Familv Unit
Sin e FamllV pronertv 2,051-2,550 . $3,220 per Sin. e Familv Unit $3,220ner Sin. e Familv Unit
Sin e Familv Pro 1,85t 2,050 $2,896 per Sin e Familv Unit $2,8% Sin e Familv Uoit
Sin, e Familv Pro V Less than or eaual to 1,850 $2,753 per Sinwe Familv Unit $2,753 ~r Sin, e Familv Unit
Multifamilv Pronertv Greater than 1,600 $2,292 Der Multifamily Unit $2,292 ----nef Multifamilv Unit
Multifami!. Pro;;ertV 1,401-1,600 $2,148 per Multifamilv Unit $2,148"'" Multifamily Unit
Multifamilv Pro 1,201 1,400 $2,005 per Multifamilv Unit $2,005 ner Multifamilv Unit
MultifamTIV Pro;;ertV Less than or enual to 1,200 $1,862 ner Multifamilv Unit $1,86~r Multifamilv Unit
Auartment Pronertv N/A $20,167 ner Acre $600 ner Aoar1II1ent Unit
Non-Residential Pronertv N/A $20167 ner Acre $5 000 per Acre
Q:\ELSINORE\CFD 2005-2 Alberhill (Castle & Cook)\report\Amended CFO Report 2005-2 (Alberhill Ranch) II-OI-05.doc
ACENDA ITEM NO.
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City of lake Elsinore
CFD No, 2005-2 (Alberhill Ranch) ,
COMMUNITY FACILITIES DISTRICT REPORT.
August 15, 2005.
Page 9
Improvement Area C Zonel Zone 2
Land Use Type Buildine: Square Footaxe Rate Rate
Single Family Property Greater than 4,250 $4,938 per Single Family Unit $4,938 per Single Family Unit
Single Family Property 3,951 4,250 $4,661 per Single Family Unit $4,661 per Single Family Unit
Sin21e Familv Prooertv 3,651 3,950 $4,356 oer Sinl!1e Family Unit $4,356 Der Sin Ie Family UDit
Single Family Property 3,051- 3,650 $4,000 per Single Family Unit $4,000 tier Sin. e Family Unit
SineJ.e Familv Prooertv 2,751 3,050 $3,659 oer Sinl!1e Family Unit $3,659 Der Sin e Family Unit
Sinl!1e Family Property 2,451- 2,750 $3,507 Der Single Family Unit $3,507 Der Sinl!1e Family Unit
SiDgle Family Properly Less than or equal to 2,450 $3,373 per Single Family Unit $3,373 per Single Family Unit
Multifamily Prooertv Greater than 1.600 $2,292 oer Mnltifamily Unit $2,292 Der Mnltifamily Unit
Multifamily Property 1,401-1,600 $2,148 per Mnltifamily Unit $2,148 oer Multifamily Unit
Multifamily Prooertv 1,201 1,400 $2005 oer Mnltifamily Unit $2,005 per Multifamily Unit
Multifamily Property Less than or eQual to 1,200 $1,862 oer Mnltifamily Unit $1,862 per Multifamily Unit
Aportment Property N/A $24,110 per Acre $600 ner Apartment Unit
Non-Residential Prooertv N/A $24,110 per Acre $5,000 per Acre
TABLE 2
Special Tax for Services for Developed Property
Community Facilities District No. 2005-'2
Fiscal Year 2005-'2006
Description Rate
Single Family Property $242 per unit
Multifamily Property $121 per unit
Non-Residential Property $545 per Acre
Q:\ELSINORBCFD2005~2 Alberhill (Castle & Cook)\report\Amended CPO Report 2005-2 (Alberhill Ranch) II.OI..Q5.doc
AGENDA ITEM NO.~
PAGE.J3. OF go
City of Lake Elsinore
CFD No. 2005.2 (Alberhlll Ranch)
COMMUNITY FACILITIES DISTRICT REPORT
August 15, 2005
Page 10
VII. Boundaries of CFD No. 2005-2
The boundaries of CFD No. 2005-2 include all land on which special taxes may be levied. A copy of
the Boundary Map for CFD No. 2005-2 is included as Exhibit A.
Q:\ELSINORE\CFD 2005.2 Alberhill (Castle & Cook}\report\Am~nded cm Report 2005-2 (Alberhill Ranch) Il.Ol-OS.doc
ACENDA ITEM NO.
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('.
City of Lake Elsinore
CFD No. 2005-2 (Alberhill Ranch)
COMMUNITY FACILITIES DISTRICT REPORT
August 15, 2005
Page 11.
VIII. General Terms and Conditions
A. Substitution Facilities
The description of the public facilities, as set forth herein, are general in their nature. The final.
nature and location of improvements and facilities will be determined upon the preparation of
final plans and specifications. The final plans may show substitutes, in lieu or modifications to
the proposed work in order to accomplish .the work of improvement, and any such substitution
shall not be a change or modification in the proceedings as long as the facilities provide a service
and are of a type substantially similar to that as set forth in this Report.
Q:\ELSINORE\CFD 2005-2 Alberhill (Castle & Cook)\report\Amended CFD Report'200S-2 (Alberhill Ranch) t 1.-Ol-05.doc.
AGENDA ITEM NO.
PAGE...] C)
1.\
OF go
City of lake Elsinore
CFD No. 2005-2 (Alberhill Ranch)
COMMUNITY FACiliTIES DISTRICT REPORT
August 15, 2005
Page 12
IX. Certification
Based on the information provided herein, it is my opinion that the facilities and services described
herein are necessary to meet increased demands placed upon the County as a result of development
occurring within the boundaries ofCFD No. 2005-2 and benefit the lands within said CFD No. 2005-
2. Further, it is my opinion that the special tax rates and method of apportionment, as set forth
herein, are fair and equitable, uniformly applied and not discriminating or arbitrary. .
Dated: August 15,2005
As Amended: November I, 2005
Harris & Associates
Dennis A. Anderson.
Associate I Project Manager
Q:\ELSINORE\CFD 2005-2 Alberhill (Castle & Cook)\report\Amended CFD Report 2005-2 (AlberhiJI Ranch) 1I-Ol-05.doc
AGENDA ITEM NO.~
PACE~OF g()
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City of lake Elsinore
CFD No. 2005.2 (Alberhill Ranch)
Exhibit "A"
Boundary Map
July 12, 2005
Page A-1
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Q:\ELSINORE\CFD 2005-2 Alberhil1 (Castle & Cook)\repon\Amended CFD Report 2005-2 (Alberhill Ranch).lI-OI-OS.doc i
AGENDA ITEM NO.
PAGEj 7
'i
OF ~O
City of lake Elsinore
CFD No. 2005-2 (Alberhill Ranch)
Exhibit "8"
June 30, 2005
Page B-2
Rate & Method of Apportionment
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RATE AND METHOD OF APPORTIONMENT FOR
COMMUNITY FACILITIES DISTRICT NO. 2005-2
OF THE CITY OF LAKE ELSINORE
(Alberhill Ranch)
(IMPROVEMENT AREA A)
The following sets forth the Rate and Method of Apportionment for the levy and collection of
Special Taxes in Improvement Area A of the City of Lake Elsinore Community Facilities
District No. 2005-2 (Alberhill Ranch) ("CFD No. 2005-2"). . The Special Tax shall be levied on
and collected in Improvement Area A of CFD No. 2005-2 each Fiscal Year, in an amount
determined through the application of the Rate and Method of Apportionment described below.
All of the real property within Improvement Area A, unless exempted by law or by the
provisions hereof, shall be taxed for the purposes, to the extent, and in the manner herein
provided.
SECTION A
DEFINITIONS
The terms hereinafter set forth have the following meanings:
"Acre or Acreage" means the land area of an Assessor's Parcel as shown on an Assessor's
Parcel Map, or if the land area is not shown on an Assessor's Parcel Map, the land area shoWn on U
the applicable final map, parcel map, condominium plan, or other recorded County parcel map or
instrument. The square footage of an Assessor's .Parcel is equal to the Acreage multiplied by
43,560.
"Act" means the Mello-Roos Communities Facilities Act of 1982, as amended, being Chapter
2.5, Part I of Division 2 of Title 5 of the Government Code of the State of California.
"Administrative Expenses" means the following actual or reasonably estimated costs directly
related to the administration of Improvement Area A: the costs of computing the Special Taxes
and preparing the Special Tax collection schedules (whether by the City or designee thereof or
both); the costs of collecting the Special Taxes (whether by the City or otherwise); the costs of
remitting the Special Taxes for Facilities to the Trustee; the costs of the Trustee (including legal
counsel) in the discharge of the duties required of it under the Indenture; the. costs to the City,
Improvement Area A or any designee thereof of complying with arbitrage rebate requirements;
the costs to the City, Improvement Area A or any designee thereof of complying with disclosure
requirements of the City, Improvement Area A or obligated persons associated with applicable
federal and state securities laws and the Act; the costs associated with preparing Special Tax
disclosure statements and responding to public inquiries regarding the Special Taxes; the costs of
the City, Improvement Area A or any designee thereof related to an appeal of the Special Tax;
the costs associated with the release of funds from an escrow account; and the City's annual
administration fees and third party expenses. Administration Expenses shall also include
amounts estimated by the CFD Administrator or advanced by the City or Improvement Area A
for any other administrative purposes of Improvement Area A, including attorney's fees and
City of Lake Elsinore
Community Facilities District No. 2005-2 (Alberhill Ranch)
Improvement Area A
June 30, 2005
u
Page 2
ACENDA ITEM NO.
PACE_' g-
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OF W
City of lake Elsinore
CFD No. 2005-2 (Alberhill Ranch)
Exhibit "8"
June 30, 2005 ,
Page B-3
n
Rate & Method of Apportionment
other costs related to commencing and pursuing to completion any foreclqsure of delinquent
Special Taxes.
,
"Apartment Property" means all Assessor's Parcels of Residential Property on which one or
more Apartment Units are constructed.
"Apartment Unit" means a dwelling unit within a building comprised of attached residential
units available for rental by the general public; not for sale to an end user, and under common,
management.
.!
"Approved Property" means all Assessor's Parcels of Taxable Property: (i) that are included in
a Final Map that was recorded prior to the January 1st preceding the FiscalY ear in which the
Special Tax is being levied, and (ii) that have not been issued a building permit on or before May
151 preceding the Fiscal Year in which the Special Tax is being levied. '
I
I
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"Assessor's Parcel" means a lot or parcel ofland designated on an Assessor's Parcel Map with
an assigned Assessor's Parcel Number. '
"Assessor's Parcel Map" means an official map of the Assessor of the County designating
parcels by Assessor's Parcel Number. .1 '
('\
"Assessor's Parcel Number'" means that number assigned to
County for purposes of identification.
, I
an Assessor's Parcel by the
"Assigned Special Tax for Facilities~' means the Special Tax of that name d,rscribed in Section
D below. .
"Backup Special Tax for Facilities" means the Special Tax of that name desfribed in Section E
below. '
"Bonds" means any obligation to repay a sum of money, including obligations in the form of
bonds, notes, certificates of participation, long-term leases, loans from government agencies, or
loans from banks, other financial institutions, private businesses, or indivi~uals, or long-term
contracts, or any refunding 'thereof, to which Special Taxes for Facilities within Improvement
Area A have been pledged.
"Building Square Footage" or "BSF" means the square footage of ass~ssable internal living
space, exclusive of garages or other structures not used as living space,. as determined by
reference to the building permit application for such Assessor's Parcel. "
"Calendar Year" means the period commencing January I of any year and ending'the
following December 31.
0.
"CFD Administrator" means an official of the City, or designee thereof, responsible for (i)
determining the. Special Tax .Requirement for Facilities, (ii) determining the Special Tax
Requirement for Services, as defined in Section L, as applicable, and (iii) prqviding for the levy
and collection of the Special Taxes. '
City of Lake Elsinore
Community Facilities District No. 2005-2 (Alberhill Ranch) ,
Improvement Area A
June 30, 2005
Page 3
ACENDA ITEM NO. l..{
PACE~OF f?O
City of Lake Elsinore
CFD No. 2005-2 (Alberhill Ranch)
Exhibit "8"
June 30, 2005
Page B4
Rate & Method of Apportionment
"CFD No. 2005-2" means Community Facilities District No. 2005-2 (Alberhill Ranch)
established by the City under the Act.
"City" means the City of Lake Elsinore.
"City Council" means the City Council of the City of Lake Elsinore, acting as the Legislative
Body of CFD No. 2005-2, or its designee.
"County" means the County of Riverside.
"Developed Property" means all Assessor's Parcels of Taxable Property that: (i) are included
in a Final Map that was recorded prior to the January I st preceding the FiscalYear in which the
Special Tax is being levied, and (ii) a building permit for new construction was issued on or
before May I st preceding the Fiscal Year in which the Special Tax is being levied.
"Exempt Property" means all Assessor's Parcels designated as being exempt from Special
Taxes as provided for in Section J.
"Final Map" means a subdivision of property by recordation of a final map, parcel map, or lot
line adjustment, pursuant" to the Subdivision Map Act (California Government Code Section
66410 et seq.) or recordation of a condominium plan pursuant to California Civil Code 1352 that
creates individual lots for which building permits may be issued without further subdivision.
"Fiscal Year" means the period commencing on July I of any year and ending the following
June 30.
"Improvement Area A" means 'Improvement Area A of CFD No. 2005-2, as identified on the
most recent boundary map for CFD No. 2005-2 on file with the County of Riverside Recorder's
office.
"indenture" means the indenture, fiscal agent agreement, resolution or other instrument
pursuant to which Bonds are issued, as modified, amended and/or supplemented from time to
time, and'any instrument replacing or supplementing the same. '
"Land Use Type" means any ofthe types listed in Table I of Secti?n D.
"Maximum Special Tax for Facilities" means the maximum Special Tax for Facilities,
determined in accordance with Section C, that can be levied by CFD No. 2005-2 within
Improvement Area A in any Fiscal Year on any Assessor's Parcel.
"Non-Residential Property" means all Assessor's Parcels of Developed' Property for which a
building permit was issued for any type of non-residential use.
"Partial Prepayment Amount" means the amount required to prepay a portion of the Special
Tax for Facilities obligation for an Assessor's Parcel, as described in Section H.
City of Lake Elsinore
Community Facilities District No. 2005-2 (Alberhill Ranch)
Improvement Area A
June 30, 2005
Page 4
AGENDA ITEM NO.
PAGE d. OOF
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u
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t..t
go
City of lake Elsinore
CFD No. 2005.2 (Alberhill Ranch)
Exhibit "6"
June 30, 2005
. Page 8-5
(\
Rate & Method of Apportionment
"Prepayment Amonnt" means the amount required to prepay the SpeciaL Tax for Facilities
obligation in full for an Assessor's Parcel, as described in Section G. .
. ."
"Proportionately" means that the ratio of the actual' Special Tax for Facilities levy to the
applicable Assigned Special Tax for Facilities is equal for all applicable Assessor's Parcels. In
case of Developed Property subject to the apportionment of the Special Tax for Facilities under
step four of Section F, "Proportionately" in step four means that the quotient of (a) actual Special
Tax for Facilities less the Assigned Special Tax for Facilities divided by (b) the Backup Special
Tax for Facilities less the Assigned Special Tax for Facilities, is equal for all applicable
Assessor's Parcels. .
. . .
"Provisional U ndevelopedProperty" means all Assessor's Parcels of Taxable Property that
would otherwise.be classified as Exempt Property. pursuant to the provisions of Section J, but
cannot be classified as Exempt Property because to do so would reduce the Acreage of all
Taxable Property bdow the required minimum Acreage set forth in Section J.
. . . '. I
"Residential Property" means all Assessor's Parcels of Developed Property for which a
building permit has been issued for purposes of constructing one or'more residential dwelling
I __.
units.
"Single Family Property" means all Assessor's Parcels of Residential Property other than
Apartment Property.
(\ "Single Family Unit" means a residential dwelling unit other than an Apartment Unit.
"Special Tax" means any of the special taxes.authorized to be levied within Improvement Area
A by CFD No. 2005-2 pursuant to the Act..
"Special Tax for Facilities" means any of the special taxes ~uthorized to be levied within
Improvement Area' A by CFD No. 2005-2 pursuant to the Act to fund, the Special Tax
Requirement for. Facilities.
"Special Tax Requirement for Facilities" means the amount required in any Fiscal Year to
pay: (i) the debt service or the periodic costs on all outstanding Bonds due in Jhe Calendar Year
thai commences in such Fiscal Year, (ii) Administrative Expenses, (iii) the costs associated with
the release of funds from an escrow account, (iv) any amount required to estllblish or replenish
any reserve funds established in association with the Bonds, (v) an amount equal to any
anticipated shortfall due to Special Tax for Facilities delinquencies in the prim' Fiscal Year, .and
(vi) the collection or accumulation of funds for the acquisition or construction of facilities
authorized by CFD No. 2005-2 provided that the inclusion of such amount does not cause an
increase in the levy of Special Tax for Facilities on Undeveloped Property as set forth in Step
Three of Section F., less (vii) any amounts available to pay debt service or other periodic costs
on the Bonds pursuant to the Indenture. . .
"Taxable Property" means all Assessor's Parcels within Improvement Area A, which are not
Exempt Property. .
n
City of Lake Elsinore
Community Facilities District No. 2005-2 (Alberhill Ranch)
Improvement Area A '
June 30, 2005 .
Page :s
ACENDA ITEM NO.
PACE.-aLOF
l-{
~O
City of lake Elsinore
CFD No. 2005-2 (Alberhill Ranch)
Exhibit "6"
June 3D, 2005
Page 8-6
Rate & Method of Apportionment
u
"Trustee" means the trustee, fiscal agent, or paying agent under the Indenture.
"Undeveloped Property" means all Assessor's Parcels of Taxable Property which are not.
Developed Property, Approved Property or Provisional Undeveloped Property.
SECTION B
CLASSIFICATION OF ASSESSOR'S PARCELS
Each Fiscal Year, beginning with Fiscal Year 2006-07, each Assessor's Parcel within
Improvement Area A shall be classified as Taxable Property or Exempt Property. In addition,
each Assessor's Parcel of Taxable Propertyshall be further classified as Developed Property,
Approved Property, Undeveloped Property or Provisional Undeveloped Property. In addition,
each Assessor's Parcel of Developed Property shall further be classified as Residential Property
or Non-Residential Property. Lastly, each Assessor's Parcel of Residential Property shall further
be classified as a Single Family Property .or Apartment Property, and each Assessor's Parcel of
Single Family Property shall be assigned to its appropriate Assigned Special Tax for Facilities
rate based on its Buiiding Square Footage.
SECTION C .
MAXIMUM SPECIAL TAX FOR FACILITIES
1.
DeveloDed ProDertv
u
Tbe Maximum Special Tax for Facilities for each Assessor's Parcel of Single Family
Property in any Fiscal Year shall be the greater of (i) the Assigned Special Tax for
Facilities or (ii) the Backup Special Tax for Facilities.
The Maximum Special Tax for Facilities for each Assessor's Parcel of Apaitment
Property or Non-Residential Property shall be the applicable Assigned Special Tax for
Facilities described in Table I of Section D.
Prior to the issuance of Bonds, the Assigned Special Tax for Facilities on Developed.
Property set forth in Table I may be reduced in accordance with, and subject to the
conditions set forth in this paragraph. If it is reasonably determined by the CFD .
Administrator thaI the overlapping debt burden (as defined in the Statement of Goals and
Policies for the Use of the Mello-Roos Community Facilities Act of 1982 adopted by the
City Council, the "Goals and Policies") calculated pursuant to the Goals and Policies
exceeds the City's maximum level objective set forth in such document, the Maximum
Special Tax for Facilities on Developed Property may be reduced (by modifying Table I)
to the amount necessary to satisfy the City's objective with respect to the maximum
overlapping debt burden level with the written consent of the CFD Administrator. In'
order to reduce the Maximum Special Tax for Facilities on Developed Property it may be
nece~sary to reduce the Maximum Special Tax for Facilities for Undeveloped Property.
The reductions permitted pursuant to this paragraph shall be reflected in an amended
City of Lake Elsinore
Community Facilities District No. 2005-2 (Alberhill Ranch)
Improvement Area A
June 30, 2005
u
Page 6
ACENDA ITEM NO. L{
PACE d.~ OF~
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(\
City of Lake Elsinore
CFD No. 2005.2 (Alberhill Ranch)
Exhibit "B"
June 30, 2005
Page 8-7
Rate & Method of Apportionment
Notice of Special Tax Lien which the City shall cause to be recorded by executing a
certificate in substantially the form attached hereto as Exhibit "A". ' .
2.
Multiple Land Use Tvpe
In some instances an Assessor's Parcel of Developed 'Property may'contain more than
one Land Use Type. The Maximum Special Tax for Facilities levied on an Assessor's
Parcel shall be the sum of the Maximum Special Tax for Facilities for all Land Use Types
located on the Assessor's Parcel. The CFD Administrator's allocation to each type of
property shall be final.
3. Approved Property, Undeveloped Property and Provisional Undeveloped Property
The Maximum Special Tax for Facilities for each Assessor's Parcel classified as
Approved Property, Undeveloped Property, or Provisional Undeveloped Property in any
Fiscal Year shall be the applicable Assigned Special Tax for Facilities.
SECTIOND
ASSIGNED SPECIAL TAX FOR FACILITIES
1.
Developed Property
Each Fiscal Year, each Asses'sor's Parcel of Single Family Property, Apartment Property,
or Non-Residential Property shall be subject to. an Assigned Special,Tax for Facilities.
The Assigned Special Tax for Facilities applicable to an Assessor's Parcel of Developed
Property for Fiscal Year 2006-07 shall be determined pursuant to Table I below.
TABLE 1
ASSIGNED SPECIAL TAX FOR FACILITIES RATES
FOR DEVELOPED PROPERTY FOR FISCAL YEAR 2006-07
"Buildin S uare Foota e
Greater than 3,650
3,151 - 3,650
2,551 - 3,150
2,051-2,550
1,851 - 2,050
Less than or e ual to 1,850
N/A
N/A
$4,566
$4,280
$3;373
$3,220
$2,896
Unit
Unit
Unit
Unit
Unit
Unit
City of Lake Elsinore
Community Facilities District No. 2005-2 (Alberhill Ranch)
Improvement Area A
June 30, 2005
Page 7
ACiENDA ITEM NO. l-\
PACE d2, OF...aa=
City of Lake Elsinore
CFD No. 2005-2 (Alberhill Ranch)
Exhibit "B"
June 30, 2005
Page 8-8
Rate & Method of Apportionment
u
2.
Annroved Pronerty. Undeveloned Pronerty' and Provisional Undeveloned Pronerty
Each Fiscal Year, each Assessor's Parcel of Approved Property, Undeveloped Property
and Provisional Undeveloped Property shall be subject to an Assigned Special Tax for
Facilities. The Assigned Special Tax for Facilities rate for an Assessor's Parcel classified'
as Approved Property, Undeveloped, Property and Provisional Undeveloped Property for
Fiscal Year 2006-07 shall be $21,330 per Acre.
3. Increase in the Assil!ned Snecial Tax for Facilities
On each July I, commencing July 1,2007, the Assigned Special Tax for Facilities rate for
Developed Property, Approved Property, Undeveloped Property' and Provisional
Undeveloped Property shall be increased by two percent (2.00%) of the amount in effect
in the prior Fiscal Year.
SECTION E
BACKUP SPECIAL TAX FOR FACILITIES
At the time a Final Map is recorded, the Backup Special Tax for Facilities for all Assessor's
Parcels of Developed Property classified or reasonably expected to be classified as a Single
Family Property within such Firal Map area shall be determined by (i) multiplying (a) the
Maximum Special Tax for Facilities rate for Undeveloped Property by (b) the total Acreage of U
Taxable Property in such Final Map area, excluding Acreage classified as Provisional
Undeveloped Property, Acreage classified or reasonably 'expected to be classified as Apartment
Property or Non-Residential Property, and any Acreage reasonably expected to be classified as
Exempt Property in such Final Map area, and (ii) dividing the results in (i) by the total number of
Single Family Units reasonably expected to be constructed within such Final Map area. The
resulting quotient shall be the Backup Special Tax for Facilities for each Assessor's Parcel of
Single Family Property within such Final Map area.
The Backup Special Tax for Facilities shall not apply to Non-Residential Property or Apartment
Property.
Notwithstanding the foregoing, if Assessor's Parcels of Developed Property which are classified
or to be' classified as Single Family Property are subsequently changed or modified by
recordation of a lot line adjustment or similar instrument, then the Backup Special Tax for
Facilities for the area that has been changed or modified shall be recalculated, based on the
methodology above, to equal the amount of Backup Special Tax for Facilities that would have
been generated if such change did not take place.
On each Julyl, commencing July 1,2007, the Backup Special Tax for Facilities rate shall be
increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year.
City of Lake Elsinore
Community Facilities District No. 2005-2 (Alberhill Ranch)
Improvement Area A
June 30, 2005
u
Page 8
AGENDA ITEM NO.' ~
PAGE ~ Lf OF ()
City of Lake Elsinore
CFD No. 2005-2 (Alberhill Ranch)
Exhibit "B"
June 30, 2005
Page B-9
(\,
Rate & Method of Apportionment
SECTION F
METHOD OF APPORTIONMENT OF THE SPECIAL TAX FOR FACILITIES
Commencing Fiscal Year 2006-07 and for each subsequent Fiscal Year, the pty Council shall
levy Special Taxes for Facilities on all Taxable Property in accordance with the following steps:
Step One:
.. .: . '
The Special Tax for F~cilities shall be levied Proportionately on each Assessor's
Parcel of Developed Property at up to 100% of the applicable Assigned Special
Tax for Facilities'rates in Table I to satisfy the Special Tax Requirement for
Facilities. '
Step Two:
If additional moneys are needed to satisfy the Special Tax' Requirement for
Facilities after the first step has been completed, the Special Tax for Facilities
shall be levied Proportionately on each Assessor's Parcel of Approved Property at
up to 100% of the Maximum Special Tax for Facilities applic'able to each such
Assessor's Parcel as needed to satisfy the Special Tax Requirement for Facilities.
n
Step Three: If additional moneys are' needed to satisfy the Special Tax:' Requirement for
Facilities after the first two steps have been completed, thei Special Tax for
Facilities shall be levied Proportionately on each Assessor's Parcel of
Undeveloped Property up to 100% of the Maximum Special Tax for Facilities
applicable to each such Assessor's Parcel as needed to satisfy the Special Tax
Requirement for Facilities.
Step Four: If additional moneys are needed to satisfy the Special Tax Requirement for
Facilities after the first three steps have been completed, then the Special Tax for
Facilities on each Assessor's Parcel of Developed Property whose Maximum
Special Tax for Facilities is the Backup Special Tax for Facilities shall be
.increased Proportionately' from the Assigned Special Tax Jor Facilities up to
100% of the Backup Special Tax for Facilities as needed to ,satisfy the Special,
Tax Requirement for Facilities.,
Step Five: If additional moneys are needed to satisfy the Special Tax 'Requirement for
Facilities after the first four steps have been completed, the Special Tax for
Facilities shall be levied Proportionately on each Assessor's Parcel of Provisional
Undeveloped Property up to 100% of the Maximum Special Tax for Facilities
applicable to each such Assessor's Parcel as needed to satisfy the Special Tax
Requirement for Facilities. ' , "
, \,
Notwithstanding the above, under no circumstances will the Special Tax for Facilities levied
against any Assessor's Parcel of Residential Property for which an occupancy permit for private
residential, use has been issued be increased by more than ten percent as a consequence of
delinquency or default by owner of any other Assessor's Parcel within Improvement Area A. '
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City of Lake Elsinore
Community Facilities District No. 2005-2 (Alberhill Ranch)
Improvement Area A ' ' ,
June 30,2005
Page 9
ACENDA ITEM NO.
PACE as OF
I-{
RO
City of Lake Elsinore
CFD No. 2005-2 (Alberhill Ranch)
Exhibit "B"
June 30, 2005
Page B-10
Rate & Method of Apportionment
SECTION G
PREPAYMENT OF SPECIAL TAX FOR FACILITIES
The folIowing additional definitions apply to this Section G:
"CFD Public Facilities" means $22,000,000 expressed in 2005 dolIars, which shalI increase by
the Construction Inflation Index on July I, 2006, and on each July I thereafter, or such lower
amount (i) determined by the City Council as sufficient to provide the public facilities under the
authorized bonding program for Improvement Area A, or (ii) determined by the City Council
concurrently with a covenant that it will not issue any more Bonds to be supported by Special
Taxes for Facilities levied under this Rate and Me.thod of Apportionment.
"Construction Fund" means an account specificalIy iden1ified in the Indenture orfunctionalIy
equivalent to hold funds, which are currently available for expenditure to acquire or construct
public facilities eligible under CFD No. 2005-2.
"Construction Inflation Index" means the annual percentage cjJange in the Engineering News-
Record Building Cost Index for the city of Los Angeles, measured as of the Calendar Year which
ends in the previous Fiscal Y ear. In the event this index ceases to be published, the Construction
Inflation Index shalI be another index as determined by the City that is reasonably comparable to
the Engineering News-Record Building Cost Index for the city of Los Angeles.
u
"Future Facilities Costs" means the CFD Public Facilities minus public facility costs available U
to be funded through existing construction or escrow accoun1s or funded by the Outstanding
Bonds, and minus public facility costs funded by interest earnings on the Construction Fund
actualIy earned prior to the date of prepayment.
"Outstanding Bonds" means alI previously issued Bonds issued and secured by the levy of
Special Taxes for Facilities which will remain outstanding after the first interest and/or principal
payment date following the current Fiscal Year, excluding Bonds to be redeemed at a later date
with the proceeds of prior prepayments of Special Taxes for Facilities. .
The Special Tax for Facilities obligation of an Assessor's Parcel of Developed Property, or an
Assessor's Parcel of Approved Property or Undeveloped Property for which a building permit
has been issued or is expected to be issued, or an Assessor's Parcel of Provisional Undeveloped
Property m.ay be prepaid in full, provided that there are no delinquent Special Taxes, penalties, or
interest charges outstanding with respect to such Assessor's Parcel at the time the Special Tax
for Facilities obligation would be prepaid. The Prepayment Amount for an Assessor's Parcel
eligible for prepayment shalI be determined as described below.
An owner of an Assessor's Parcel intending to prepay the Special Tax for Facilities obligation
shall provide the CFD Administrator with written notice of intent to prepay. Within 30 days of
receipt of such notice the CFD Administrator shall notify such owner of the Prepayment Amount
of such Assessor's Parcel. The CFD Administrator may charge a reasonable fee for providing
this service. Prepayment must be made not less than 45 days prior to the next occurring date that
City of Lake Elsinore
Community Facilities District No. 2005-2 (Alberhill Ranch)
Improvement Area A
June 30, 2005
Page 10
AGENDA ITEM NO.
PAGe~OF
U
L.t
1<0:
City of Lake Elsinore Exhibit "B"
CFD No. 2005-2 (Alberhill Ranch)
n
Rate & Method of Apportionment
June 30, 2005
Page B-11
notice of redemption of Bonds from the proceeds of such prepayment may be given by the
Trustee pursuant to the Indenture.
The Prepayment Amount for each applicable Assessor's Parcel shall becalc~lated according to
the following formula (capitalized terms defined below):
plus
plus
plus
plus
less
less
equals
Bond Redemption Amount
Redemption Premium
Future Facilities Amount
Defeasance Cost
Administrative Fee.
Reserve Fund Credit
Caoitalized Interest Credit
Prepayment Amount
; .
As of the date of prepayment, the Prepayment Amount shall be calculated as follows:
I.
For an Assessor's'Parcel ot-Developed Property, computetheAssigned Special
Tax for Facilities and Backup Special Tax for Facilities, if any, applicable to the
Assessor's Parcel. For an Assessor's Parcel of Approved Property or
Undeveloped Property, compute the Assigned Special Tax for Facilities and the
Backup Special Tax for Facilities as though it was already desighated as
Developed Property based upon the building permit issued or expected to be
issued for that Assessor's Parcel. For an Assessor's Parcel of P~~visional
Undeveloped Property compute the Assigned Special Tax for Facilities for that
Assesspr's Parcel. .
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2. For .each Assessor's Parcel of Developed Property, Approved Property,
Undeveloped Property or Provisional Undeveloped Property ~o be prepaid, (a)
divide the Assigned Special Tax for Facilities computed pursuant to paragraph I
for such Assessor's Parcel by the sum of the estimated AssignJd Special Tax for
Facilities applicable to all Assessor's Parcels of Taxable Property at buildout,.as
reasonably determined by the City, and (b) divide the Backup Special Tax for
Facilities computed pursuant to.paragraph I for such Assessor's Parcel by the sum
of the estimated Backup Special Tax for Facilities applicable. to all Assessor's
Parcels of Taxable Property at buildout, as reasonably determim:d by the City.. .
. ..
3. Multiply the larger quotient computed pursuant to paragraph 2(a) or 2(b) by the
Outstanding Bonds. The product shall be .the "Bond Redemptio'1 Amount".
,
4. Multiply the Bond Redemption Amount by the applicable redemption premium, if
any, on the Outstanding Bonds to be redeemed with the proc'eeds of the Bond
Redemption Amount. This product is the "Redemption Premium." .
5. Compute the Future Facilities Cost.
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City of Lake Elsinore
Community Facilities District No. 2005-2 (Alberhill Ranch)
Improvement Area A
June 30, 2005
Page II
ACENDA ITEM NO.
PACE d.. 7
y
OF 80
City of Lake Elsinore
CFD No. 2005.2 (Alberhill Ranch)
Exhibit "8"
June 30, 2005
Page B-12
Rate & Method of Apportionment
u
6. Multiply the larger quotient computed pursuant to paragraph 2(a) or 2(b)
by the amount determined pursuant to paragraph 5 to determine the Future
Facilities Cost to be prepaid (the "Future Facilities Amount").
7. Compute the amount needed to pay interest on the Bond Redemption Amount to
be redeemed with the proceeds of the Prepayment Amount until the earliest
redemption date for the Outstanding Bonds.
8. Determine the actual Special Tax for Facilities levied on the Assessor's Parcel in
the current Fiscal Year which has not yet been paid.
9. Estimate the amount of interest earnings to be derived from' the
reinvestment of the Bond Redemption Amount plus the Redemption Premium
until the earliest redemption date for the Outstanding Bonds.
10. Add the amounts computed pursuant to paragraph 7 and 8 and subtract the
amount computed pursuant to paragraph 9. This difference is the "Defeasance
Cost."
I I. Estimate the administrative fees and expenses associated with the prepayment,
including ,the costs of computation of the Prepayment Amount, the costs of
'redeeming Bonds, and the costs of recording any notices to evidence the U
prepayment and the redemption: This amount is the "Administrative Fee."
12. Calculate the "Reserve Fund Credit" as the lesser of: (a) the
expected reduction in'the applicable reserve requirements, if any, associated with
the redemption of Outstanding Bonds' as a result of the prepayment, or (b) the
amount derived by subtracting the new reserve requirements in effect after the
redemption of Outstanding Bonds as a result of the prepayment from the balance
in the applicable reserve funds on the prepayment date. Notwithstanding the
foregoing, if the reserve fund requirement is satisfied by a surety bond or other
instrument at the time of the prepayment, then no Reserve Fund Credit shall be
given. Notwithstanding the foregoing, the Reserve Fund Credit shall in no event
be less than O. ' '
13. If any capitalized interest for the Outstanding Bonds will not have been expended
as of the date immediately following the first interest and/or principal payment
. following the current Fiscal Year, a capitalized interest credit shall be calculated
by multiplying the larger quotient computed pursuant to paragraph 2(a) or 2(b) by
the expected balance in the capitalized interest fund or account under the
Indenture after such first interest and/or principal payment. This amount is the
"Capitalized Interest Credit."
City of Lake Elsinore
Community Facilities District No. 2005-2 (Alberhill Ranch)
Improvement Area A
June 30, 2005
U
, Pa~ 12
ACENDA ITEM NO.
PACE ~J( Of
L\r
~O
City of Lake Elsinore
CFD No. 2005-2 (A1berhill Ranch)
Exhibit "B"
June 30, 2005
Page 8-13
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Rate & Method of Apportionment
14. The Prepayment Amount is equal to the sum of the Bond Redemption Amount,
the Redemption Premium, the Future Facilities Amount, the Defeasance Cost, and
the Administrative Fee, less the Reserve Fund Credit and the Capitalized Interest
Credit. .
,j
15. From the Prepayment Amount, the amounts computed pursuant to paragraphs 3,
4, 10, 12, and 13 shall be deposited into the appropriate fund as established under
the Indenture and used to . retire Outstanding Bonds or make debt service
payments. The amount computed pursuant to paragraph 6 shall be deposited into
the Construction Fund. The amount computed pursuant to paragraph II shall be
retained by Improvement Area A.
The Special Tax for Facilities prepayment amount may be insufficient to redeem a full $5,000
increment of Bonds. In such cases, the increment above $5,000 or integral multiple thereof will
be retained in the appropriate fund established under the Indenture to be used with the next
prepayment of Bonds or to make debt service payments.
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With respect to a Special Tax for Facilities obligation that is prepaid pUrsuant to this Section G,
the City Council shall indicate in the records of Improvement Area A that. there has been a
prepayment of the Special Tax for Facilities obligation and shall cause a suitable notice to be
recorded in compliance with the Act within thirty (30) days of receipt of such prepayment to
indicate the prepayment of the Special Tax for Facilities obligation and the release of the Special
Tax for Facilities lien on such Assessor's Parcel, and the obligation of such Assessor's Parcel to
pay such Special Taxes for Facilities shall cease.
Notwithstanding the foregoing, no prepayment will be allowed unless the amount of Special Tax
for Facilities that may be levied on Taxable Property, net of Administrative Expenses, shall be at
least 1.1 times the regularly scheduled annual interest and principal payments on all currently
Outstanding Bonds in each future Fiscal Year.
SECTION H
PARTIAL PREPAYMENT OF SPECIAL TAX FOR FACILITIES
- I-t
'. . . I
The Special Tax for Facilities obligation of an Assessor's Parcel of Developed Property, or an
Assessor's Parcel of Approved Property or Undeveloped Property for which ,a building permit
has been issued or is expected to be issued, or and Assessor's Parcel of Provisi6nal Undeveloped
Property, as calculated in this Section H below, may be partially prepaid, provided that there are
no delinquent Special Taxes, penalties, or interest charges outstanding with respect to such
Assessor's Parcel at the time the Special Tax for Facilities obligation would be 'prepaid.
- !"
('\
June 30, 2005
,
City of Lake Elsinore
Community Facilities District No. 2005-2 (Alberhill Ranch)
. Improvement Area A
~ENDA .JU'Nli '-\
. PAGE~OF gO
City of lake Elsinore
CFD No. 2005.2 (Alberhill Ranch)
Exhibit "8"
June 30, 2005
Page 8-14
Rate & Method of Apportionment
u
The Partial Prepayment Amount shall be calculated according to the following formula:
PP = (PG-A) x F +A
The terms above have the following meanings:
PP = the Partial Prepayment Amount.
Pa = the Prepayment Amount calculated according to Section G.
F = the percent by which the owner of the Assessor's Parcel is partially
prepaying the Special Tax for Facilities obligation.
A = the Administrative Fee calculated according to Section G.
SECTION I
TERMINATION OF SPECIAL TAX
For each Fiscal Year that any Bonds are outstanding the Special Tax for Facilities shill I be levied
on all Assessor's Parcels subject to the Special Tax for Facilities. The Special Tax for Facilities
shall cease not later than the 2041~42 Fiscal Year, however, the Special Taxes for Facilities will .
cease to be levied in an earlier Fiscal Year if the CFD Administrator has deterniined (i) that all
required interest and principal payments on the CFD No. 2005-2 Bonds have been paid; (ii) all
authorized facilities for CFD No. 2005-2 have been acquired and all reimbursements to the
developer have been paid, (iii) no delinquent Special Taxes for Facilities remain uncollected and .
(iv) all other obligations of Improvement Area A have been satisfied.
City of Lake Elsinore
Community Facilities District No. 2005-2 (Alberhill Ranch)
Improvement Area A .
June 30, 2005
u
Page 14 '
ACENDA ITEM NO. Lt
PACE 30 OF ~O
City of lake Elsinore
CFD No. 2005.2 (Alberhill Ranch)
Exhibit "B"
c
June 30, 2005
Page 8-15
n
Rate & Method of Apportionment
SECTION J
EXEMPTIONS
The City shall classify as Exempt Property, in order of priority, (i) Assessor's Parcels which are
owned by, irrevocably offered for dedication, encumbered by or restricted in use by the State of
California, Federal or other local governments, including school districts, (ii) Assessor's Parcels
which are used as places of worship and are exempt from ad valorem property taxes because
they are owned by a religious organization, (iii) Assessor's Parcels which. are owned by,
irrevocably offered for dedication, encumbered by or restricted in use by a homeowners'
association, (iv) Assessor's . Parcels with public or utility easements making impractical their
utilization for other than the purposes set forth in the easement, (v) Assessor's Parcels which are
privately owned and are encumbered by or restricted solely for public uses, .or (vi) Assessor's
Parcels restricted to other types of public uses determined by the City Council, provided that no
such classification would reduce the sum of all Taxable Property to less than 70.78 Acres.
Notwithstanding the above, the City Council shall not chissify'an Assessor'sParcel as Exempt
Property if such classification would reduce the sum of all Taxable Property to less than 70.78
Acres. Assessor's Parcels which cannot be classified as Exempt Property because such
classification would reduce the Acreage of all Taxable Property to less than 70.78 Acres will be
classified as Provisional Undeveloped Property, and will be subject to Special Taxes pursuant to '
Step Five in Section F.
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SECTION K
MANNER OF COLLECTION OF SPECIAL TAX FOR FACILITIES
The Special Tax for Facilities shall be collected in the same manner and at the same time as
ordinary ad valorem property taxes, provided, however, that Improvement Area A may collect
Special Taxes for Facilities at a different time or in a different manner if necessary to meet its
financial obligations, and may covenant to foreclose and may actually foreclose on delinquent
Assessor's Parcels as permitted by the Act. '
SECTION L
SPECIAL TAX FOR SERVICES
The following additional definitions apply to this Section L:
"Developed Multifamily Unit" means a residential dwelling {mit within a building in which
each of the individual dwelling units has or shall have at least one common wall with another
dwelling unit and a building permit has been issued by the City for such dwelling unit on or prior
to May I preceding the Fiscal Year in which the Special Tax for Services is being levied.
"Developed Single Family Unit" means a residential dwelling unit other than a Developed
Multifamily Unit on an Assessor's Parcel for which a building permit has been issued by the City
n
City of Lake Elsinore
Community Facilities District No. 2005-2 (Alberhill Ranch)
Improvement Area A
" June 30, 2005
Page 15
AGENDA ITEM NO.
PAGE ~ ,
L\
OF'~O
City of lake Elsinore
CFD No. 2005.2 (Alberhill Ranch)
Exhibit "8"
June 30, 2005
Page 8-16
Rate & Method of Apportionment
on or prior to May I preceding the FiscalYear in which the Special Tax for Services is being
levied.
u
"Maximum Special Tax for Services" means the maximum Special Tax for Services that can
be levied by Improvement Area A in any Fiscal Year on any Assessor's Parcel.
"Operating Fund" means a fund that shall be maintained for Improvement Area A for any
Fiscal Year to pay for the actual costs of maintenance related to the Service Area, and the
applicable Administrative Expenses.
"Operating Fund Balauce" means the amount of funds in the Operating Fund at the end of the
preceding Fiscal Year.
"Service Area" means parks, open space, and storm drains.
"Special Tax for Services" means any of the special taxes authorized to be levied within CFD.
No. 2005-2 pursuant to the Act to fund the Special Tax Requirement for Services.
. .
"Special Tax Requirement for Services" means the amount determined in any Fiscal Year for
Improvement Area A equal to (i) the budgeted costs directly related. to the Service Area,
including maintenance, repair and replacement of certain components of the Service Area which
have been accepted and maintained or are reasonably expected to be accepted and maintained
during the current Fiscal Year, (ii) Administrative Expenses, and (iii) anticipated delinquent U
Special Taxes for Services based on the delinquency rate in CFD No. 2005-2 for the previous . .
Fiscal Year, less (iv) the Operating Fund Balance, as determined by the CFD Administrator.
1. Rate and Method of Apportionmeut of the Special Tax for Services
Commencing Fiscal Year 2005-2006 and for each subsequent Fiscal Year, the City Couocil
shall levy Special Taxes for Services on (i) all Assessor's Parcels containing a Developed
Single Family Unit or Developed Multifamily Unit and (ii) all Assessor's Parcels of Non-
Residential Property, up to the applicable Maximum Special Tax for Services to fund the
Special Tax Requirement for Services.
The Maximum Special Tax for Services for Fiscal Year 2005-2006 shall be $242 per
Developed Single Family Unit, $121 per Developed Multifamily Unit, and $545 per Acre for
each Assessor's Parcel of Non-Residential Property.
On each July I, commencing July I, 2006, the Maximum Special Tax for Services. shall be
increased by two percent (2.00%) ofthe amount in effect in the prior Fiscal Year.
City of Lake Elsinore
Community Facilities District No. 2005-2 (Alberhill Ranch)
Improvement Area A
June 30, 2005
U
Page 16
ACENDA ITEM NO. 'i
PACE ~a OF gO
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City of Lake Elsinore
CFD No. 2005.2 (AJberhill Ranch)
Exhibit "8" .
June 30, 2005
PageB-17
Rate & Method of Apportionment
2. Duration of the Soecial Tax for Services
The Special Tax for Services shall be levied in perpetuity to fund the Special Tax
Requirement for Services, unless no longer required as determined at the sole discretion of
the City Council.
3.. Collectiou'ofthe Soecial Tax for Services
The Special Tax for Services shall be collected in the same manner and at the same time as
ordinary ad valorem property taxes, provided, however, that Improvement Area A may
collect the Special Tax for Services at a different time or in a different manner if necessary to
meet its funding requirements.
. SECTION M
APPEALS
Any property owner claiming that the amount or application of the Special Tax is not correct
may file a written notice of appeal with the CFD Administrator not later than twelve months after
having paid the first installment of the Special Tax that is disputed. The CFD Administrator
shall promptly review the appeal, and if necessary, meet with the property owner, consider
written and oral evidence regarding the amount ofthe Special Tax, and rule onithe appeal. If the
CFD Administrator's decision requires that the Special Tax for an Assessor's Parcel be modified
or changed in favor of the property owner, a cash refund shall not be made (~xcept for the last
year oflevy), but an adjustment shall be made tothe Special Tax on that Assessor's Parcel in the
subsequent FiscalYear(s). .
The City Council may interpret this Rate and Method of Apportionment for purposes of
clarifying any ambiguity and make determinations relative to the annual administration of the
Special Tax and any landowner or residents appeals. Any decision of the City Council shall be
final and binding as to all persons.
,
City of Lake Elsinore
Community Facilities District No. 2005-2 (Alberhill Ranch)
Improvement Area A
June 30, 2005
Page 17
AGENDA ITEM NO. ~
PAGe 3~ OF R() _
City of lake Elsinore
CFD No. 2005-2 (Alberhill Ranch)
Exhibit "6"
June 30, 2005
PageB-18
Rate & Method of Apportionment
EXHIBIT "A"
CITY OF LAKE ELSINORE AND CFD NO. 2005-X CERTIFICATE
1. Pursuant to Section _ of the Rate and Method of Apportionment of Special Tax (the
"RMA"), the City of Lake Elsinore (the "City") and Community Facilities District No. 2005-
X of the City of Lake Elsinore ("CFD No. 2005-X") hereby agree to a reduction in the
Maximum Special Tax for Facilities for Developed Property [within such Improvement Area):
(a) The information in Table I relating to the Maximum Special Tax for Facilities for
Developed Property and/or Undeveloped Property within [Improvement AreaX or CFD
No. 2005-X) shall be modified as follows:
[insert Table I showing effective change to special tax rates and/or insert change to special tax
rates for Undeveloped Property)
2. Table I may only be modified prior to the issuance of Bonds. .
3. Upon execution of the Certificate by the City and CFD No. 2005-X the City shall cause an
amended Notice of Special Tax Lien [for the Improvement Area) to be recorded reflecting the
modifications set forth herein. . .
By execution hereof, the undersigned acknowledges, on behalf of the City of Lake Elsinore and
CFD No. 2005-X, receipt of this Certificate and modification ofthe RMA as set forth in
this Certificate. .
CITY OF LAKE ELSINORE
By:
Date:
CFD Administrator
COMMUNITY F ACILITlES DISTRICT NO. 2005-X
OF THE CITY OF LAKE ELSINORE
By:
Date:
City of Lake Elsinore
Community Facilities District No. 2005-2 (Alberhill Ranch)
Improvement Area A
June 30, 2005
Page 18
ACENDA ITEM NO.
PACE ~ Lf OF
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City of lake Elsinore
CFD No. 2005-2 (Alberhill Ranch)
Exhibit "8"
June 30, 2005
Page 6-19
n
Rate & Method ot Apportionment
RATE AND METHOD OF APPORTIONMENT FOR
COMMUNITY FACILITIES DISTRICT NO. 2005-2
OF THE CITY OF LAKE ELSINORE
(Alberhill Ranch)
(IMPROVEMENT AREA B)
The following sets forth the Rate and Method of Apportionment for the levy and collection of
Special Taxes in Improvement Area B of the City of Lake Elsinore Community Facilities District
No. 2005-2 (Alberhill Ranch) ("CFD No. 2005"2"). The Special Tax shall be levied on and
collected in Improvement Area B of CFD No. 2005-2 each Fiscal Year, in an amo.unt determined
through the application of the Rate and Method of Apportionment described:.below. All of the
real property within Improvement Area B, unless exempted by law or by the provisions hereof,
shall be taxed for the purposes, to the extent, and in the manner herein provided.
SECTION A
DEFINITIONS
The terms hereinafter set forth have the following meanings:
(\
"Acre or Acreage" means the land area of an Assessor's Parcel as shown on an Assessor's
Parcel Map, or if the land area is not shown on an Assessor's Parcel Map, the land area shown on
the applicable final map, parcel map, condominium plan, or other recorded County parcel map or
instrument. The square footage of an Assessor's Parcel is equal to the Acreage multiplied by
43,560.
"Act" means the Mello-Roos Communities Facilities Act of 1982, as amended, being Chapter
2.5, Part I of Division 2 of Title 5 of the Government Code of the State of California.
n
"Administrative Expenses" means the following actual or reasonably estimated costs directly
related to the administration of Improvement Area B: the costs of computing the Special Taxes
and preparing the Special.Tax collection schedules (whether by the City or designee thereof or
both); the costs of collecting the Special Taxes (whether by the City or otherwise); the costs of .
remitting the Special Taxes for Facilities to the Trustee; the costs of the Trustee (including legal
counsel) in the discharge of the duties. required of it under the Indenture; the costs to the City,
Improvement Area B or any designee thereof of complying with arbitrage rebate requirements;
the costs to the City, Improvement Area B or any designee thereof of complying with disclosure
requirements of the City, Improvement Area B or obligated persons associated with applicable
federal and state securities laws and the Act; the costs associated with preparing Special Tax.
disclosure statements and responding to public inquiries regarding the SpeciahTaxes; the costs of
the City, Improvement Area B or any designee thereof related to an appeal of the Special Tax;
the costs associated with the release of funds from an escrow account; and the City's annual
administration fees and third party expenses. Administration Expenses .shall also include
amounts .estimated by the CFD Administrator or advanced by the City or Improvement Area B
for any other administrative purposes of Improvement Area B, including attorney's fees and
other costs related to commencing and pursuing to completion. any foreclosure of delinquent
Special Taxes.
City of Lake Elsinore
Community Facilities District No. 2005-2 (Alberhill Ranch)
Improvement Area B .
June 30, 2005
.Page 19 L\
ACENDA ITEM NO.
PACE ~5 OF~
City of Lake Elsinore
CFD No. 2005.2 (Alberhill Rancll)
Exhibit "8"
June 30, 2005
Page 8-20
Rate & Method of Apportionment
u
"Apartment Property" means aq Assessor's Parcels of Residential Property on which one or
more Apartment Units are constructed.
"Apartment Unit" means a dwelling unit within a building comprised of attached residential
units available for rental by the general public, not for sale to an end user, and under common
management.
"Approved Property" means all Assessor's Parcels of Taxable Property: (i) that are included in
a Final Map that was recorded prior to the January 1 st preceding the Fiscal Year in which the
Special Tax is being levied, and (ii) that have not been issued a building permit on or before May
1 st preceding the Fiscal Year in which the Special Tax is being levied.
"Assessor's Parcel" means a lot or parcel of land designated on an Assessor's Parcel Map with
an assigned Assessor's Parcel Number.
"Assessor's Parcel Map" means an official map of the Assessor of the County designating
parcels by Assessor's Parcel Number.
"Assessor's Parcel Number" means that number assigned to an Assessor's Parcel by the
County for purposes of identification.
"Assigned 'Special Tax for Facilities" means the Special Tax of that name described in Section'
D below. .' " U
"Backup Special Tax for Facilities" means the Special Tax of that name described in Section E
below.
"Bonds" means any obligation to repay a sum of money, including obligations in the form of
bonds, notes, certificates of participation, long-term leases, loans from government agencies, or
loans from banks, other financial institutions, private businesses, or individuals, or long-term
contracts, or any refunding thereof, to which Special Taxes for Facilities within Improvement'
Area B have been pledged. '
"Building Square Footage" or "BSF" means the square footage of assessable internal living
space, exclusive of garages or other structures not used as living space; as determined by
reference to the building permit application for such Assessor's Parcel.
"Calendar Year" means the period commencing January I of any year and ending the
following December 31.
"CFD Administrator" means an official of the City, or designee thereof, responsible for (i)
determining the Special Tax Requirement for Facilities, (ii) determining the Special Tax
Requirement for Services, as defined in Section L, as applicable and (iii) providing for the levy
and collection of the Special Taxes.
City of Lake Elsinore
Community Facilities District No. 2005-2 (Alberhill Ranch)
Improvement Area B
June 30, 2005
u
P'!lle 20
ACENDA ITEM NO.
PACE ~h OF
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1<0
City of lake Elsinore
CFD No. 2005-2 (Alberhill Ranch)
Exhibit "B"
June 30, 2005
Page B-21
n
Rate & Method of Apportionment
"CFD No. .2005-2" means Community Facilities District No. 2005-2 (Alberhill Ranch)
established by the City under the Act.
"City" means the City of Lake Elsinore.
"City Council" means the City Council of the City of Lake Elsinore, acting as. the Legislative
Body of CFD No. 2005-2, or its designee.
"County" means the County of Riverside.
"Developed Property" means all Assessor's Parcels of Taxable Property that: (i) are included
in a Final Map that was recorded prior to the January I st preceding the Fiscal Year in which the
Special Tax is being levied, and (ii) a building permit for new construction' was issued on or
before May I st preceding the Fiscal Year in which the Special Tax is being levied.
"Exempt Property" means all Assessor's Parcels designated as being exempt from Special
Taxes as provided for in Section J.
"Final Map" means a subdivision of property by recordation of a final map, parcel map, or lot
line adjustment, pursuant to the Subdivision Map Act (California Government Code Section
66410 et seq.) or recordation of a condominium plan pursuant to California Civil Code 1352 that
creates iildividuallots for which building permits may be issued without further subdivision.
(\
"Fiscal Year" means the period commencing on July I of any year and ending the following
June 30.
"Improvement Area B" means Improvement Area B of CFD No. 2005-2, as identified on the
most recent boundary map for CFD No. 2005-2 on file with the County of Riverside Recorder's
Office. .
"Indenture" means the indenture, fiscal agent agreement, resolution or. other instrument
pursuant to which Bonds are issued, as modified, amended and/or supplemented from time to
time, and any instrument replacing or supplementing the same.
"Land' Use Type" means any of the types listed in Table I and/or Table 2 of Section D.
"Maximum Special Tax for Facilities" means the maximum Special Tax for Facilities,
determined in accordance with Section C, .that can be levied by CFD No. 2005-2 within
Improvement Area B.in any Fiscal Year on any Assessor's Parcel.
"Multifamily Property" means all Assessor's Parcels of Residential Property on which one or
more Multifamily Units are constructed.
"Multifamily Unit" means a dwelling unit within a building comprised of attached residential
units available for sale to an end user.
n
City of Lake Elsinore
Community Facilities District No. 2005-2 (Alberhill Ranch)
Improvement Area B .
June 30, 2005
Page 21
AGENDA ITEM NO.
PAGE 37
~
OF KO
City of Lake Elsinore
CFD No. 2005-2 (Alberhill Ranch)
Exhibit "B"
June 30, 2005 '
Page B-22
Rate & Method of Apportionment
u
"Non-Residential Property" means all Assessor's Parcels of Developed Property for which a
building permit was issued for any type of non-residential use.
"Partial Prepayment Amount" means the amount required to prepay a portion' of the Special
Tax for Facilities obligation for an Assessor's Parcel, as described in Section H.
"Prepayment Amount" means the amount required to prepay the Special Tax for Facilities
obligation in full for an Assessor's Parcel, as described in Section G.
"Proportionately" means that the ratio of the actual Special Tax for Facilities levy to the
applicable Assigned Special Tax for Facilities is equal for all applicable Assessor's Parcels. In
case of Developed Property subject to the apportionment of the Special Tax for Facilities under
step four of Section F, "Proportionately" in step four means that the quotient of (a) Special Tax
for Facilities less the Assigned Special Tax for Facilities divided by (b) the Backup Special Tax
for Facilities less the Assigned Special Tax for Facilities, is equal for all applicable Assessor's
Parcels. '
"Provisional Undeveloped Property" means all Assessor's Parcels of Taxable Property .that
would otherwise be classified as Exempt Property pursuant to the provisions of Section J,but
cannot be classified as Exempt Property because to do so would reduce the Acreage of all
Taxable Property below the required minimum Acreage set forth in SeCtion J for Zone I or Zone
2 as applicable.
"Residential Property" means all Assessor's Parcels of Developed Property for which a U
building permit has been issued for purposes of constructing one or more residential dwelling'
units.
"Single Family Property" means all Assessor's Parcels of Residential Property other than
Apartment Property and Multifamily Property.
"Single, Family Unit" means' a residential dwelling unit other than an Apartment Unit or
Multifamily Unit.
"Special Tax" means any of the special taxes authorized to be levied within Improvement Area
B by CFD No. 2005-2 pursuant to the Act. ' '
"Special Tax for Facilities" means any of the special taxes authorized to be levied within
Improvement Area B by CFD N~. 2005-2 pursuant to the Act to fund the Special Tax
Requirement for Facilities.
"Special Tax Requirement for Facilities" means the amount required in any Fiscal Year to
pay: (i) the debt service or the periodic costs on all outstanding Bonds due in the Calendar Year
that commences in such Fiscal Year, (ii) Administrative Expenses, (iii) the costs associated with
the release of funds from an escrow account, (iv) any amount required to establish or replenish
any reserve funds established in association with the Bonds, (v) an amount equal to any
anticipated shortfall due to Special Tax for Facilities delinquencies in the prior Fiscal Year, and
(vi) the collection or accumulation of funds for the acquisition or construction of facilities
U
City of Lake Elsinore
Community Facilities District No. 2005-2 (Alberhill Ranch)
Improvement Area B
June 30, 2005
Page 22
ACENDA ITEM NO.
PACE 3g OF
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City of Lake Elsinore
CFD No. 2005-2 (Alberhill Ranch)
Exhibit "B"
,
Rate & Method of Apportionment
J.
,June 30, 2005
Page 8-23
authorized by CFD No. 2005-2 provided that the inclusion of such amounrdoes not cause an
increase in the levy of Special Tax for Facilities on Undeveloped Property as set forth in Step
Three of Section F., less (vii) any amounts available to pay debt service or other periodic costs
on the Bonds pursuant to the Indenture.
"Taxable Property" meait~ all Assessor's Parcels within Improv~ment Area B, which are not
Exempt Property.
, I
"Trustee" means the trustee, fiscal agent, or paying agent under the Indenture.
. , - . I
"Undeveloped Property" means all Assessor's Parcels of Taxable Property which are not
Developed Property, Approved Property or Provisional Undeveloped Property.
"Zone" means Zone I or Zone 2.
"Zone 1'" means a specific geographic area within Improvement 'Area B as depicted in Exhibit B
attached hereto.' ,
"Zone 2" means a specific geographic area within Improvement'Area B as depicted in Exhibit B
attached hereto.
SECTION B
CLASSIFICATION OF ASSESSOR'S PARCELS
Each Fiscal Year, beginning with Fiscal Year 2006-07 , each Assessor's Parcel within
Improvement Area B shall be assigned to Zone I or Zone 2 and shall be classified as Taxable
Property or Exempt Property. In addition, each Assessor's Parcel of Taxable Property shall be
further classified as Developed Property, Approved Property, Undeveloped Property or
Provisional Undeveloped Property. In addition, each Assessor's Parcel of Developed Property
shall further be classified as Residential Property or Non-Residential Property. Lastly, each
Assessor's Parcel of Residential Property shall further be classified as a Single Family Property,
Multifamily Property, or Apartment Property, and each Assessor's ParceL of Single Family
Property and Multifamily Property shall be assigned to its appropriate Assigned Special Tax for
Facilities rate based on its Building Square Footage.
SECTION C
MAXIMUM SPECIAL TAX FOR FACILITIES
1. Developed Property
The Maximum Special Tax for each Assessor's Parcel of Single Family Property and
Multifamily Property in any Fiscal Year shall be the greater of (i) the' Assigned Annual
Special Tax or (ii) the Backup Annual Special Tax.
City of Lake Elsinore
Community Facilities District No. 2005-2 (Alberhill Ranch)
Improvement Area B
June 30, 2005
Page 23 L\
AGENDA ITEM NO. ' \
PAGE~OF 80
City of Lake Elsinore
CFD No. 2005.2 (Alberhill Ranch)
Exhibit "B"
June 30, 2005
Page B-24
Rate & Method of Apportionment
The Maximum Special Tax for Facilities for each Assessor's Parcel of" Apartment
Property or Non-Residential PropertY shall be the applicable Assigned Special Tax for
Facilities described in Table I or Table 2 of Section D
Prior to the issuance of Bonds, the Assigned" Special Tax for Facilities on Developed
Property set forth in Table 1 may be reduced in accordance with, and subject to the
conditions set forth in this paragraph. If it is reasonably determined by the CFD
Administrator that the overlapping debt burden (as defined in the Statement of Goals and
Policies for the Use of the Mello-Roos Communitv Facilities Act of 1982 adopted by the
City Council, the "Goals and Policies") calculated pursuant to the Goals and Policies
exceeds the City's maximum level objective set forth in such document, the Maximum
Special Tax for Facilities on Developed Property may be reduced (by modifying Table 1)
to the amount necessary to satisfy the City's objective with respect to the maximum
overlapping debt burden level with the written consent of the CFD Administrator. In
order to reduce the Maximum Special Tax for Facilities on Developed Property it may be
necessary to reduce the Maximum Special Tax for Facilities for Undeveloped Property.
The reductions permitted pursuant to this paragraph shall be reflected in an amended
Notice of Special Tax Lien which the City shall cause to be recorded by executing a
certificate in substantially the form attached hereto as Exhibit "A".
2. MultiDleLand Use Tvpe
u
In some instances an Assessor's Parcel of Developed Property may contain mOre than U
one Land Use Type. The Maximum Special Tax for Facilities levied on an Assessor's "
Parcel shall be the sum ofthe Maximum Special Tax for Facilities for all Land Use Types
located on the Assessor's Parcel. The CFD Administrator's allocation to each type of
property shall be final. "
3. ADDroved ProDertv. UndeveloDed ProDertv and Provisional UndeveloDed ProDertv
The Maximum Special Tax for Facilities for each Assessor's Parcel classified as
Approved Property, Undeveloped Property, or Provisional Undeveloped Property in any
Fiscal Year shall be the applicable Assigned Special Tax for Facilities. "
SECTION D
ASSIGNED SPECIAL TAX FOR FACILITIES
1. DeveloDed ProDertv "
Each Fiscal Year, each Assessor's Parcel of Single Family Property, "Multifamily
Property, Apartment Property, or Non-Residential Property shall be subject to an
Assigned Special Tax for Facilities. The Assigned Special Tax for Facilities applicable
to an Assessor's Parcel of Developed Property for Fiscal Year 2006-07 shall be
determined pursuant to Table 1 and Table 2 below.
City of Lake Elsinore
Community Facilities District No. 2005-2 (AIberhiII Ranch)
Improvement Area B
June 30, 2005
Page 24
ACENDA ITEM NO.
PACE 0/'0 OF
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City of Lake Elsinore
CFD No. 2005-2 (Alberhill Ranch)
Exhibit "8"
.Rate & Method of Apportionment.
June 3D, 2005
Page 8-25
('\
TABLE 1
ASSIGNED SPECIAL FOR FACILITIES TAX RATES
FOR DEVELOPED PROPERTY WITHIN ZONE 1
FOR FISCAL YEAR 2006-07
r\,
Buildin S uare Foota e
Greater than 4,250
3,951-4,250
3,651 - 3,950
3,351 -3,650
3,051 - 3,350
2,551 - 3,050
...2,051-2,550
1,851-2,050
Less than or e ual to 1,850
Greater than 1,600
1,401 -1,600
1,201 -1,400
Less than or e ua1 to 1,200
N/A
N/A
TABLE 2
$4,938
$4,661
$4,356
$4,280
$3,564
$3,373
. $3,220
$2,896
Unit
Unit
Unit
Unit
Unit
Unit
Unit
Unit
ASSIGNED SPECIAL FOR FACILITIES TAX RATES
FOR DEVELOPED PROPERTY WITHIN ZONE 2
FOR FISCAL YEAR 2006-07
('\
Buildin S uare Foota e
Greater than 4,250
3,951-4,250
3,651 - 3,950
3,351 - 3,650
.3,051 - 3,350
2,551 - 3,050
2,051-2,550
1,851 - 2,050
Less than or e ual to 1,850
Greater than 1,600
1,401 - 1,600
1,201 -1,400
Less than or e ual to 1,200
N/A
N/A
$4,938
$4,661
$4,356
$4,280
$3,564
$3,373
$3,220
$2,896
Unit
Unit
Unit
Unit
Unit
Unit
Unit.
Unit
City of Lake Elsinore
Community Facilities District No. 2005-2 (Alberhill Ranch)
Improvement Area B
June 30, 2005
Page 25
AGENDA ITEM NO.
PAGE 'i I
~
OF~
City of Lake Elsinore
CFD No. 2005-2 (Alberhill Ranch)
Exhibit "8"
June 30, 2005
PageB-26
Rate & Method of Apportionment
u
2. Approved Property. Undeveloped Property and Provisional Undeveloped Property
Each Fiscal Year, each Assessor's Parcel of Approved Property, Undeveloped Property
and Provisional Undeveloped Property shall be subject to an Assigned Special Tax for
Facilities. The Assigned Special Tax for Facilities rate for an Assessor's Parcel classified
as Approved Property, Undeveloped Property and Provisional Undeveloped Property for
Fiscal Year 2006-07 shall be $20,167 per Acre for Zone I and $48,865 per Acre for Zone
2. .
3. Increase in the Assil!ned Special Tax for Facilities
On each July I, commencing July I, 2007, the Assigned Special Tax for Facilities rate for
Developed Property, Approved Property, Undeveloped Property and Provisional
Undeveloped Property shall be increased by two percent (2.00%) of the amount in effect
. in the prior Fiscal Year.
SECTION E
BACKUP ANNUAL SPECIAL TAX FOR FACILITIES
At the time a Final Map is recorded, the Backup Special Tax for Facilities for all Assessor's
Parcels of Developed Property classified or reasonably expected to be classified as a Single U
Family Property or Multifamily Property within such Final Map area shall be determined by (i) .
multiplying (a) the Maximum Special Tax for Facilities rate for Undeveloped Property by (b) the
total Acreage of Taxable Property in such Final Map area, excluding Acreage classified as
Provisional Undeveloped Property, Acreage classified or reasonably expected to be classified as
Apartment Property or Non-Residential Property, and any Acreage reasonably expected to be
classified as Exempt Property in such Final Map area, and (ii) dividing the results in (i) by the
total number of Single Family Units or Multifamily Units reasonably expected to be constructed
within such Final Map area. The resulting quotient shall be the Backup Special Tax for Facilities
for each Assessor's Parcel of Single Family Property or Multifamily Property within such Final
Map area. The Maximum Special Tax for Facilities rate(s) applied in (i) above shall be the
applicable Undeveloped Property rate for the Zone in which each Assessor's Parcel is located;
provided, however, if an Assessor's Parcel is located in two Zones, the Maximum Special Tax
for Facilities rate applied shall be the lower of the two Maximum Special Tax for Facilities rates.
The Backup Special Tax for Facilities shall not apply to Non-Residential Property or Apartment
Property.
Notwithstanding the foregoing, if Assessor's Parcels of Developed Property which are classified
or to be classified as either Single Family Property or Multifamily Property are subsequently
changed or modified by recordation of a lot line adjustment or similar instrument, then the
Backup .Special Tax. for Facilities for the area that has been changed or modified shall be
recalculated, based on the methodology above, to equal the amount of Backup Special Tax for
Facilities that would have been generated if such change did not take piace.
City of Lake Elsinore
Community Facilities District No. 2005-2 (Alberhill Ranch)
Improvement Area B
June 30, 2005
u
Page 26. L.t
AGENDA ITEM NO. \
PAGE If d... OF $?V
City of Lake Elsinore Exhibit "B"
CFD No. 2005-2 (Alberhill Ranch)
n
Rate & Method of Apportionment
June 30, 2005
Page B-27
On each July I, commencing July I, 2007, the Backup Special Tax for Facilities rate shall be
increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year.
SECTION F
METHOD OF APPORTIONMENT OF THE SPECIAL TAX FOR FACILITIES
Commencing Fiscal Year 2006-07 and for each subsequent Fiscal Year, the City Council shall
levy Special Taxes for Facilities on all Taxable Property in accordance with the following steps:
Step One:
Step Two:
(\
Step Three:
The Special Tax for Facilities shall be levied Proportionately on each Assessor's
Parcel of Developed Property at up, to 100% of the applicable' Assigned Special
Tax for Facilities rates in Table I and Table 2 to satisfy' tpe ,Spe'cial Tax
Requirement for Facilities, "
If additional moneys are needed to satisfy the Special Tax Requirement for
Facilities after the first step has been completed, the Special Tax for Facilities
shall be levied Proportionately on each Assessor's Parcel of Approved Property at
up to 100% of the Maximum Special Tax for Facilities applicable to each such
Assessor's Parcel as needed to satisfy the Special Tax Requirem~nt for Facilities.
;
If additional moneys are needed to satisfy the Special Tax> Requirement for
Facilities after the first two steps have !ieen completed, the Annual Special Tax
for Facilities shall be levied Proportionately on each Assessor's Parcel of
Undeveloped 'Property up to 100% of the Maximum Special Tax for Facilities
applicable to each such Assessor's Parcel as needed to satisfy the Special Tax
Requirement for Facilities: ' . .
Step Four: If additional moneys are needed to satisfy the Special Tax! Requirement for
Facilities after the first three steps have been completed, then the Special Tax for
Facilities on each Assessor's Parcel .of Developed Property whose Maximum
Special Tax for Facilities is the Backup Special Tax for ,Facilities shall be
increased Proportionately from the Assigned Special Tax for Facilities up to
100% of the Backup Special Tax for Facilities as needed to satisfy the Special
Tax Requirement for Facilities.
Step Five: If additional moneys <Ire needed to satisfy the Special Tax, Requirement for
Facilities after the first four ,steps have been completed, the. Special Tax for
Facilities shall.be levied Proportionately on each Assessor's Parcel of Provisional
Undeveloped Property up to 100% of the Maximum Special Tax for Facilities
, applicable to each such Assessor's Parcel as needed to satisfy the Special Tax
Requirement for Faciliiies. " . .
Notwithstanding the above, under no circumstanced will the Special Tax fo~ Facilities levied
against any Assessor's Parcel of Residential Property for which an occupancy permit for private
(\
June 30, 2005
City of Lake Elsinore
Community Facilities District No. 2005-2 (AlberhillRanch)
Improvement Area B
. Pall.e 27
ACENDA ITEM No.
PACE 43 . OF
L\
~O
City of Lake"Elsinore
CFD No. 2005-2 (Alberhill Ranch)
Exhibit "8"
June 30, 2005
Page 8-28
Rate & Method of Apportionment
u
residential use has been issued be increased by more than ten percent as a consequence of
delinquency or default by owner of any other Assessor's Parcel within Improvement Area B.
SECTION G
PREPAYMENT OF SPECIAL TAX FOR FACILITIES
The following additional definitions apply to this Section G:
, .
"CFD Public Facilities" means $29,000,000 expressed in 2005 dollars, which shall increase by
the Construction Inflation Index on July 1,2006, and on each July I thereafter, or such lower
amount (i) determined by the City Council as sufficient to provide the public facilities under the
authorized bonding program for Improvement Area B, or (ii) determined by the City Council
concurrently with a covenant that it will not issue any more Bonds to be supported by Special
Taxes for Facilities levied under this Rate and Method of Apportionment.
"Construction Fund" means an account specifically identified in the Indenture 'or functionally
equivalent to hold funds, which are currently available for expenditure to acquire or construct
public facilities eligible under CFD No. 2005-2. ' .
"Construction Inflation Index" means the annual percentage change in the Engineering News-
Record Building Cost Index for the city of Los Angeles, measured as of the calendar year which
ends in the previous Fiscal Year. In the event this index ceases to be published, the Construction U
Inflation Index shall be another index as determined by the City that is reasonably comparable to
the Engineering News-Record Building Cost Index for the city of Los Angeles.
"Future Facilities Costs" means the CFD Public Facilities minus public facility costs available
to be funded through existing construction or escrow accounts or funded by the Outstanding
Bonds, and minus public facility costs funded by interest earnings on the Construction Fund
actually earned prior to the date of prepayment.
"Outstanding Bonds" means all previously issued Bonds issued and secured by the levy of
Special Taxes for Facilities which will remain outstanding after the first interest and/or principal
payment date following the current Fiscal Year, excluding Bonds to be redeemed at a later date
with the proceeds of prior prepayments of Special Taxes for Facilities.
The Special Tax for Facilities obligation of an Assessor's Parcel of Developed Property, or an
Assessor's Parcel of Approved Property or Undeveloped Property" for which a building permit
has been issued or is expected to be issued, or an Assessor's Parcel of Provisiomil Undeveloped
Property may be prepaid in full, provided that there are no delinquent Special taxes, penalties, or
interest charges outstanding with respect to such Assessor's Parcel at the time the Special Tax
for Facilities obligation would be prepaid. The Prepayment Amount for an Assessor's Parcel
eligible for prepayment shall be determined as described below.
An owner of an Asses'sor'sParcel intending to pr~pay the Special Tax for Facilities obligation
shall provide the CFD Administrator with written notice of intent to prepay. Within 30 days of
City of Lake Elsinore June 30, 2005
Community Facilities District No. 2005-2 (Alberhill Ranch)
Improvement Area B
u
Page 28 I J
ACENDA ITEM NO. ......
PACE Lf'-l OF 80
City of lake Elsinore
CFD No. 2005-2 (Alberhlll Ranch)
Exhibit "8"
June 30, 2005
Page 8-29
(\
Rate & Method of Apportionment
receipt of such notice, the CFD Administrator shall notify such owner of the Prepayment
Amount of such Assessor's Parcel. The CFD Administrator may charge a reasonable fee for
providing this service. Prepayment must be made not less than 45 days prior to the next
occurring date that notice of redemption of Bonds from the proceeds of such prepayment may be
given by the Trustee pursuant to the Indenture..
. The Prepayment Amount for each applicable Assessor's Parcel shall be calculated according to
the following formula (capitalized terms defined below):
plus
plus
plus
plus
less
less
equals
Bond Redemption Amount
Redemption Premium
Future Facilities Amount
Defeasance Cost
Administrative Fee .
Reserve Fund Credit
Capitalized Interest Credit
Prepayment Amount
As of the date of prepayment, the Prepayment Amount shall be calculated as follows:
(\
I. For an Assessor's Parcel of Developed Property, compute the Assigned Special
Tax for Facilities and Backup Special Tax for facilities, if any, applicable to the
Assessor'sParcel. For an Assessor's Parcel of Approved Property or
Undeveloped Property, compute the Assigned Special Tax for Facilities and the
Backup Special Tax for Facilities as though it was already designated as
Developed Property based upon the building permit issued or expected to be
issued for that Assessor's Parcel. For an Assessor's Parcel of Provisional
Undeveloped Property compute the Assigned Special Tax for Facilities for that
Assessor's Parcel.
2. For each Assessor's Parcel of Developed Property, Approved Property,
Undeveloped Property or Provisional Undeveloped Property to be prepaid, (a)
divide the Assigned Special Tax for Facilities computed pursuant to paragraph I
for such Assessor's Parcel by the sum of the estimated Assigned Special Tax for
Facilities applicable to all Assessor's Parcels of Taxable Property at buildout, as
reasonably determined by the City, and (b) divide the Backup Special Taxfor
Facilities computed pursuant to paragraph I for such Assessor's Parcel by the sum
of the estimated Backup Special Tax for Facilities applicable to all Assessor's
Parcels of Taxable Property at buildout, as reasonably determined by the City.
3. Multiply the larger quotient computed pursuant to paragraph 2(a) or 2(b) by the
. Outstanding Bonds. The product shall be the "Bond Redemption Amount".
(\
Multiply the Bond Redemption Amount by the applicable redemption premium, if
any, on the Outstanding Bonds to be redeemed with the proceeds of the Bond
Redemption Amount. This product is the "Redemption Premium."
City of Lake Elsinore. June 30, 2005 .
Community Facilities District No. 2005-2 (Alberhill Ranch)
Improvement Area B
Page 29
AGENDA ITEM NO.
PACE LfS OF
~
80
4.
City of Lake Elsinore
CFD No. 2005-2 (Alberhill Ranch)
Exhibit "B"
June 30, 2005
, Page 8-30 '
Rate & Method of Apportionment
u
5. Compute the Future Facilities Cost.
6. Multiply the larger quotient computed pursuant to paragraph 2(a) or 2(b) by the
amount determined pursuant to paragraph 5 to determine the Future Facilities
Cost to be prepaid (the "Future Facilities Amount").
7. Compute the amount needed to pay interest on the Bond Redemption Amount to
be redeemed with the proceeds of the Prepayment Amount until the earliest
redemption date for the Outstanding Bonds. .
8. Determine the actual Special Tax for Facilities levied on the Assessor's Parcel in
the current Fiscal Year which has not yet been paid.
9. Estimate the amount of interest earnings to be derived from the reinvestment of
the Bond Redemption Amount plus the Redemption Premium until the earliest
redemption date for the Outstanding Bonds.
10. Add the amounts computed pursuant to paragraph 7 and 8 and subtract the
amount computed pursuant to paragraph 9. This difference is the "Defeasance
Cost."
II.
Estimate the administrative fees and expenses associated with the prepayment,
including the costs' of computation of the Prepayment Amount, the costs of
redeeming Bonds, and the costs of recording any notices to evidence the
prepayment and the redemption. This amount is the "Administrative Fee."
u
12, Calculate the "Reserve Fund Credit" as the lesser of: (a) the expected reduction in
the applicable reserve requirements, if any, associated with the redemption of
Outstanding Bonds as a result of the prepayment, or (b) the amount derived by
subtracting the new reserve requirements in effect after the' redemption of
Outstanding Bonds as a result of the prepayment from the balance in the
applicable reserve funds on the 'prepayment date. Notwithstanding the foregoing,
, " if the reserve fund requirement is satisfied by a surety bond or other instrument at
the time of the prepayment, then no Reserve Fund Credit shall be given.
Notwithstanding the foregoing, the Reserve Fund Credit shall in no event be less
than O.
13.' If any capitalized interest for the Outstanding Bonds will not have been expended
as of the date immediately following the first interest and/or principal payment
following the current Fiscal Year, a capitalized interest credit shall be calculated
by multiplying the larger quotient computed pursuant to paragraph 2(a) or 2(b) by
the expected balance in the capitalized interest fund or account under the
Indenture after such first interest and/or principal payment. This amount is the
"Capitalized Interest Credit."
City of Lake Elsinore
Community Facilities District No. 2005-2 (Alberhill Ranch)
Improvement Area B
June 30, 2005
u
. Page 30
AGENDA ITEM NO. Y
PAGE LtC:, OF 80
City of Lake E,lsinore Exhibit "B"
CFD No. 2005-2 (Alberhill Ranch)
n
Rate & Method of Apportionment
June 30, 2005
Page 8-31
14. The Prepayment Amount is equal to the sum of the Bond Redemption Amount,
the Redemption Premium, the Future Facilities Amount, the Defeasance Cost, and
the Administrative Fee, less the Reserve Fund Credit and the Capitalized Interest
Credit.
f!
15. From the Prepayment Amount, the amounts computed pursuant to paragraphs 3,
4, 10, 12, and 13 shall be deposited into the appropriate fund as established under
the Indenture and used to retire Outstanding Bonds or make debt service
payments. The amount computed pursuant to paragraph 6 shall be deposited into
the Construction Fund. The amount computed pursuant to paragraph II shall be
retained by Improvement Area B.
The Special Tax for Facilities prepayment amount may be insufficient to redeem a full $5,000
increment of Bonds. In such cases, the increment above $5,000 or integral multiple thereof will
be retained in the appropriate fund established under the Indenture to be used with the next
prepayment of Bonds or to make debt service payments.
n
With respect to a Special Tax for Facilities obligation that is prepaid pursuant to this Section G,
the City Council shall indicate in the records of Improvement Area B that there has been a
prepayment of the Special Tax for Facilities obligation and shall cause a suitable notice to be
recorded in compliance with the Act within thirty (30) days of receipt of such prepayment to
indicate the prepayment of the Special Tax for Facilities obligation and the release of the SpeCial
Tax for Facilities lien on such Assessor's Parcel and the obligation of such Asse~sor's Parcel to
pay such Special Taxes for Facilities shall cease.,
Notwithstanding the foregoing, no prepayment will be allowed unless the amo~nt of Special Tax
for Facilities that may be levied on Taxable Property, net of Administrative Expenses, shall be at
least 1.1 times the regularly scheduled annual interest and prinCipal payments on all currently
Outstanding Bonds in each future Fiscal Year. '
SECTION H
PARTIAL PREPAYMENT OF SPECIAL TAX FOR FACILITIES
The Special Tax for Facilities obligation of an Assessor's Parcel of Developed Property, or an
Assessor's Parcel of Approved Property or Undeveloped Property for which a building permit
has been issued or is expected to be issued, or and Assessor's Parcel of Provisional Undeveloped
Property, as calculated in this Section H below, may be'partiaIly prepaid, provided that there are
no delinquent Special Taxes, penalties, or interest charges outstanding with respect to such
Assessor's Parcel at the time the Special Tax for Facilities obligation would be prepaid.
n
City of Lake Elsinore
Community Facilities District No. 2005-2 (Alberhill Ranch)
Improvement Area B ' ,
June 30, 2005
, ,P,!~31
ACENDA ITEM NO.
PACE t.t 7 OF
~
~O
City of Lake Elsinore
CFD No. 2005.2 (Alberhill Ranch)
Exhibit "B"
June 3D, 2005
Page 8-32 .
Rate & Method of Apportionment
u
The Partial Prepayment Am~unt shall be.calculated according to the following formula:
PP = (PGc-A)x F +A
The terms above have the following meanings:
PP = the Partial Prepayment Amount.
'PG'= the Prepayment Amount calculated according to Section G.
F = the percent by which the owner of the Assessor' sParcel is partially
prepaying the Special Tax for Facilities obligation:
A = the Administration Fee calculated according to Section G..
The owner of any Assessor's Parcel who desires such prepayment shall notify the CFD
Administrator of such owner's intent to partially prepay the Special Tax for Facilities and the
percentage by which the Special Tax for Facilities shall be prepaid. The CFD Administrator
shall provide the owner with a statement of the amount required for the partial prepayment of the
Special Tax for Facilities for an Assessor's Parcel within 30 days of the request and may charge
a reasonable fee for providing this service. With respect to any Assessor's ~arcel that is partially
prepaid, the City Council shall (i) distribute the funds remitted to it according to Section G, and
(ii) shall indicate in the records of CFD No. 2005-2 that there has been a partial prepayment of
the Special Tax for Facilities obligation and shall. cause a suitable notice to be recorded in
compliance with the Act within thirty (30) days of receipt of such partial prepayment of the
Special Tax for Facilities obligation to indicate the partial prepayment of the Special Tax. for U
Facilities obligation and the partial release of the Special Tax for Facilities lien on such
Assessor's Parcel, and the obligation of such Assessor's Parcel to pay such prepaid portion of the
Special Tax for Facilities shall cease.
Notwithstanding'the foregoing, no partial prepayment will be allowed unless the amount of
Special Tax for Facilities that may be levied on Taxable Property after such partial prepayment,
net of Administrative Expenses, shall be at least 1.1 times the regularly scheduled annual interest
and principal payments on all currently Outstanding Bonds in each future Fiscal Year.
SECTION I
TERMINATION OF SPECIAL TAX
For each Fiscal Year that any Bonds are outstanding the Special Tax for Facilities shall be levied
on all Assessor's Parcels subject to the Special Tax for Facilities. The Special Tax for Facilities
shall cease not later than the 2043-44 Fiscal Year, however, the Special Taxes for Facilities will
cease to be levied in an earlier Fiscal Year if the CFD Administrator has determined (i) that all
required interest and principal payments on the CFD No. 2005-2 Bonds have been paid; (ii) all
authorized facilities of CFD No. 2005-2 hav'e been acquired and all reimbursements to the
developer have been paid, (iii) no delinquent Special Taxes for Facilities remain uncollected and
(iv) all other obligations of Improvement Area B have been satisfied.
City of Lake Elsinore
Community Facilities District No. 2005-2 (Alberhill Ranch)
Improvement Area B
June 30, 2005
u
Page 32
ACENOA ITEM NO.
PACE 1.../ ~
OF ~O
City of lake Elsinore
CFD No. 2005.2 (A1berhill Ranch)
. Exhibit "8"
June 30, 2005
Page 8-33
(\
Rate & Method of Apportionment
SECTION J
EXEMPTIONS
The City shall classify as Exempt Property, in order of priority, (i) Assessor's Parcels which are
owned by, irrevocably offered for dedication, encumbered by or restricted in hse by the State of
California, Federal or other local governments, including school districts, (ii) Assessor's Parcels
which are used as places of worship and are exempt from ad valorem property taxes because
they are owned by a religious organization, (iii) Assessor's Parcels which are owned by,
irrevocably offered for dedication, encumbered by or restricted in use by a homeowners'
association, (iv) Assessor's Parcels with public or utility easements making impractical their
utilization for other than the purposes set forth in the easement, (v) Assessor's Parcels which are
privately owned and are encumbered by or restricted solely for public uses, or (vi) Assessor's
Parcels restricted to other types of public uses determined by the City Council, provided that no
such classification would reduce the sum of all Taxable Property to less than 85.59 Acres for
Zone I and 6.80 Acres for Zone 2. "
n
Notwithstanding the above, the City Council shall. not classify an Assessor's Parcel as Exempt
Property if such classification would reduce the sum of all TaXable Property to less than 85.59
Acres for Zone I and 6.80 Acres for Zone 2. Assessor's Parcels which cannot be classified as
Exempt Property because such classification would reduce the Acreage of aHTaxable Property
to less than 85.59 Acres for Zone.] and 6.80 Acres for Zone 2 will be classified as Provisional
Undeveloped Property; and will be subject to Special Taxes for Facilities pursuant to Step Five
in Section F.
SECTION K
MANNER OF COLLECTION
The Special Tax for Facilities shall be collected in the same manner and at the same time as
ordinary ad valorem property taxes, provided, however, that Improvement Area B may collect
Special Taxes for Facilities at a different .time or in a different manner if necessary to meet its
financial obligations, and may covenant to foreclose. and may actually foreclose on delinquent
Assessor's Parcels as permitted by the. Act. .
SECTION L
SPECIAL TAX FOR SERVICES
The following additional definitions apply to this Section L: .
"Developed Multifamily Unit" means a residential dwelling unit within a building in which
each of the individual dwelling units has or shall have at least one common wall with another
dwelling unit and a building permit has been issued by the City for such dwelling unit on or prior
to May I preceding the Fiscal Year in which the Special Tax for Services is being levied.
n
"Developed Single Family Unit" means a residential dwelling unit other than a Developed
Multifamily Unit on an Assessor's Parcel for which a building permit has been issued by the City
City of Lake Elsinore
Community Facilities District No. 2005-2 (Alberhill Ranch)
Improvement Area B
June 30, 2005
Page 33
ACENDA ITEM NO. ~
. PACE Lf9 OF 9-0
City of Lake Elsinore
CFD No. 2005-2 (Alberhill Ranch)
Exhibit "8"
June 30, 2005
Page 8-34
Rate & Method of Apportionment
on or prior to May I preceding the Fiscal Year in which the Special Tax for Services is being
levied.
"Maximum Special Tax for Services" means the maximum Special Tax for Services that can
be levied by Improvement Area B in any Fiscal Year on any Assessor's Parcel.
"Operating Fund" means a fund that shall be maintained for Improvement Area B for any
Fiscal Year to pay for the actual costs of maintenance related to the Service Area, and the
applicable Administrative Expenses.
"Operating Fund Balance" means. the amount of funds in the Operating Fund at the end of the
preceding Fiscal Year. .
"Service Area" means parks, open space, and storm drains.
"Special Tax for Services" means any .of the special taxes authorized to be levied within CFD
No. 2005-2 pursuant to the Act to fund the Special Tax Requirement for Services.
u
"Special Tax Requirement for Services" means the amount determined in any Fiscal Year for
Improvement Area B equal to (i) the budgeted costs directly related to the Service Area,
including maintenance, repair and replacement of certain components of the 'Service Area which
have been accepted and maintained or are reasonably expected to be accepted and maintained,
during the current Fiscal Year, (ii) Administrative Expenses, and (iii) anticipated delinquent U
Special Taxes for Services based on the delinquency rate in CFD No. 2005-2 for the previous
Fiscal Year, less (iv) the Operating Fund Balance, as determined by the CFD Administrator.
1. Rate and Method of Apportionment of the Special Tax for Services
Commencing Fiscal Year 2005-06 and. for each subsequent Fiscal Year, the City Council
shall levy Special Taxes for Services on (i) all Assessor's Parcels containing' a Developed
Single Family Unit or Developed Multifamily Unit and (ii) all Assessor's Parcels of Non-
Residential Property, up to the applicable Maximum Special Tax for Services to fund the
Special Tax Requirement for Services.
The Maximum Special Tax. for Services for Fiscal Year 2005-06 shall be $242. per
Developed Single Family Unit, $121 per Developed Multifamily Unit, and $545 per Acre for
each Assessor's Parcel of Non-Residential Property.
On each July I, commencing July I, 2006, the Maximum Special Tax for Services shall be
increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year.
2. Duration ofthe Special Tax for Services
City of Lake Elsinore
Community Facilities District No. 2005-2 (Alberhill Ranch)
Improvement Area B
June 30, 2005
Page 34
ACENDA ITEM NO.
-
PAGE ~O OF
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City of lake Elsinore
CFD No. 2005-2 (Alberhill Ranch)
Exhibit "B"
Rate & Method of Apportionment
June 30, 2005
Page 8-35
The Special Tax for Services shall be levied in perpetuity to fund' the Special Tax
Requirement for Services, unless no longer required as determined at the sole discretion of
the City Council.
3. Collection of the Special Tax for Services
The Special Tax for Services shall be collected. in the same manner and at the same time as
ordinary ad valorem property taxes, provided, however, that Improvement Area B may
collect the Special Tax for Services at a different time or in a different manner if necessary to
meet its funding requirements.
SECTION M
APPEALS
Any property owner claiming that the amount or application of the Special Tax is not correct
may file a written notice of appeal with the CFD Administrator not later than twelve months after
having paid the first installment of the Special Tax that is disputed. The CFD Administrator
shall promptly review the appeal, and if necessary, meet with the property owner, consider.
written and oral evidence regarding the amount of the Special Tax, and rule on'the appeal. If the
CFD Administrator's decision requires that the Special Tax for an Assessor's Parcel be modified
or changed in favor of the property owner, a cash refund shall not be made (except for the last
year of levy), but an adjustment shall be made to the Special Tax on that Assessor's Parcel in the
subsequent Fiscal Year(s).
The City Council may interpret this Rate and Method of Apportionment for purposes of
clarifying any ambiguity and make determinations relative to the annual administration of the
Special Tax and any landowner or residents appeals. Any decision of the City Council shall be
final and binding as to all persons.
City of Lake Elsinore
Community Facilities District No. 2005-2 (Alberhill Ranch)
Improvement Area B
June 30, 2005
Page 35
AGENDA ITEM NO.
PAGE.5 I
II
,[
I,
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II
I:
I
I,
i,
l'
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OF 9; 0
City of Lake Elsinore
CFD No. 2005-2 (Alberhill Ranch)
Exhibit "B"
June 30, 2005
Page 8-36
Rate & Method of Apportionment
u
EXHIBIT "A"
CITY OF LAKE ELSINORE AND CFD NO. 2005-X CERTIFICATE
I. Pursuant to Section _ of the Rate and Method of Apportionment of Special Tax (the
"RMA"), the City of Lake Elsinore (the "City") and Community Facilities District No. 2005-
X of the City of Lake Elsinore ("CFD No. 2005-X") hereby agree to a reduction in the
Maximum Special Tax for Facilities for Developed Property (within such Improvement Area):
(b) The information in Table I relating to the Maximum Special Tax for Facilities for
Developed Property and/or Undeveloped Property within {Improvement Area X or CFD
No. 2005-X] shall be modified as follows:
(insert Table J showing effective change to special tax rates and/or insert change to special tax
rates for Undeveloped Property)
2. Table I may only be modified prior to the issuance of Bonds.
3. Upon execution of the Certificate by the City and CFD No. :2005-X the City shall cause an
amended Notice of Special Tax Lien [for the Improvement Area) to be recorded reflecting the
modifications set forth herein.
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By execution hereof, the undersigned acknowledges, on behalf of the City of Lake Elsinore and
CFD No. 2005-X, receipt of this Certificate and modification of the RMA as set forth in
this Certificate.
CITY OF LAKE ELSINORE
By:
Date:
CFD Administrator
COMMUNITY FACILITIES DISTRICT NO. 2005-X
OF THE CITY OF LAKE ELSINORE
By:
Date:
City of Lake Elsinore
Community Facilities District No. 2005-2 (Alberhill Ranch)
Improvement Area B
June 30, 2005
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Page 36
ACENDA ITEM NO.
PAGE .6 a OF
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City of Lake Elsinore
CFD No. 2005-2 (Alberhill Ranch)
Exhibit "6"
June 3D, 2005
Page B-37
Rate & Method of Apportionment
EXHIBIT "B"
ZONE MAP
City of Lake Elsinore
Community Facilities District No. 2005-2 (Alberhill Ranch)
Improvement Area B .
June 30, 2005
Page 37
AGENDA ITEM NO.
PAGE C; ~ OF
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City of Lake Elsinore
CFD No. 2005-2 (Alberhill Ranch)
Exhibit "B"
Rate & Method of Apportionment
June 30, 2005
Page B-38
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City of Lake Elsinore
Community Facilities District No. 2005-2 (Alberhill Ranch)
Improvement Area B
,June 30, 2005
Page 38
AGENDA ITEM NO.
PAGE c; L{ OF
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City Of Lake Elsinore
CFD No. 2005.2 (Alberhill Ranch)
Exhibit "B"
. June 30, 2005
Page 8.39
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Rate & Method of Apportionment
RATE AND METHOD OF APPORTIONMENT FOR
COMMUNITY FACILITIES DISTRICT NO. 2005-2
OF THE CITY OF LAKE ELSINORE
(Alberhill Ranch)
(IMPROVEMENT AREA C)
The following sets forth the Rate and Method of Apportionment for the levy and collection of
Special Taxes in Improvement Area C of the City of Lake Elsinore Community Facilities District
No. 2005-2 (Alberhill Ranch) ("CFD No. 2005-2"). The Special Tax shall.be levied on and
collected in Improvement Area C of CFD No. 2005-2 each Fiscal Year, in an amount determined
through the application of the Rate and Method of Apportionment described below. All of the
real property within Improvement Area C, unless exempted by law or by the provisions hereof,
shall be taxed for the purposes, to the extent, and in the manner herein provided.
SECTION A
DEFINITIONS
The terms hereinafter set forth have the following meanings:
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"Acre or Acreage" means the land area of an Assessor's Parcel as showmon an Assessor's
Parcel Map, or if the land area is not shown on an Assessor's Parcel Map, the land area shown on
the applicable final map, parcel map, condominium plan, or other recorded County parcel map or
instrument. The square footage of an Assessor's Parcel is equal to the Acreage multiplied by
43,560.
"Act" means the Mello-Roos Communities Facilities Act of 1982, as amended, being Chapter
2.5, Part I of Division 2 of Title 5 ofthe Government Code of the State of California.
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"Administrative Expenses" means the following actual or reasonably estimated costs directly
related to the administration of Improvement Area C: the costs of computing the Special Taxes
and preparing the Special Tax collection schedules (whether by the City or designee thereof or
both); the costs of collecting the Special Taxes (whether by the City or otherwise); the costs of
remitting the Special Taxes for Facilities to the Trustee; the costs of the Trustee (including legal
counsel) in the discharge of the duties required of it under the Indenture; the costs to the City,
Improvement. Area C or any designee thereof of complying with arbitrage rebate requirements;
the costs to the City,. Improvement Area C or any designee thereof of complying with disclosure
requirements of the City, Improvement Area C or obligated persons associated with applicable
federal and state securities . laws and the Act; the costs associated with preparing Special Tax
disclosure statements and responding to public inquiries regarding the Special Taxes; the costs of
the City, Improvement Area C or any designee thereof related to an appeal of the Special Tax;
the costs associated with .the release of funds from an esc'row account; and the City's annual
administration fees and. third party expenses. Administration Expenses shall also include
amounts estimated by the CFD Administrator or advanced by the City or Improvement Area C
for any other administrative purposes of Improvement Area C, including attorney's fees and
other costs related to commencing and pursuing to completion any foreclosure of delinquent
Special Taxes.
City of Lake Elsinore
Community Facilities District No. 2005-2 (Alberhill Ranch)
Improvement Area C
June 30, 2005
Page 39
ACENDA ITEM NO.
PAGE 5.s OF
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City of Lake Elsinore
CFD No. 2005.2 (AlberhiJI Ranch)
Exhibit "B"
June 30, 2005
Page 8-40 '
Rate & Method of Apportionment ~
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"Apartment Property" means all Assessor's Parcels of Residential Property on which one or
more Apartment Units are constructed.
"Apartment Unit" means a dwelling unit within a building comprised of attached residential
units available for rental by the general public, not for sale to an end user, and under common
management.
"Approved Property" means all Assessor's Parcels of Taxable Property: (i) that are included in
a Final Map that was recorded prior to the January I st preceding the Fiscal Year in which the
Special Tax is being levied, 'and (ii) that have not been issued a building permit on or before May
1st preceding the Fiscal Year in which the Special Tax is being levied.
"Assessor's Parcel" means a lot or parcel of land designated on an Assessor's Parcel Map with
an assigned Assessor's Parcel Number.
"Assessor's Parcel Map" means an official map of the Assessor of the County designating
parcels by Assessor's Parcel Number.
"Assessor's Parcel Number" means that number assigned to an Assessor's Parcel by the
County for purposes of identification.
"Assigned Special Tax for Facilities" means the Special Tax of that name described in Section U' ,
D below.
"Backup Special Tax for Facilities" means the Special Tax of that name described in Section E
below.
"Bonds" means any obligation to repay a sum of money, including obligations in the form of
bonds, notes, certificates of participation, long-term leases, loans from government agencies, or
loans from banks, other financial institutions, private businesses, or individuals, or long-term
contracts, or any refunding thereof, to which Special Taxes for Facilities within Improvement
Area C have been pledged. '
"Building Square Footage" or "BSF" means the square footage of assessable internal living
space, exclusive of garages or other structures not used as living space, as determined by
reference to the building permit application for such Assessor's Parcel.
"Calendar Year" means the period commencing January I of any year and ending the
following December 3 I. '
"CFD Administrator" means an official of the City, or designee thereof, responsible for (i)
determining the Special Tax Requirement for Facilities, (ii) determining the Special' Tax
Requirement for Services, as defined in Section L, as applicable and (iii) providing for the levy
and collection of the Special Taxes.
City of Lake Elsinore
Community Facilities District No. 2005-2 (Alberhill Ranch)
Improvement Area C
June 30, 2005
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Page 40
ACENDA ITEM NO.
PAGE C\ C:,
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OF KG
City of ~ake Elsinore Exhibit "8"
CFD No. 2005-2 (Alberhill Ranch)
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Rate & Method of Apportionment
1.
June 3D, 2005
" Page 8-41
"CFD No. 2005-2" means Community Facilities District No. 2005-2 (Alberhill Ranch)
established by the City under the Act.
,;
"City" means the City of Lake Elsinore.
"City Council" means the City Council of the City of Lake Elsinore, acting as the Legislative
Body of CFD No. 2005-2, or its designee.
"County" means the County of Riverside.
"I'
"Developed Property" means all Assessor's Parcels of Taxable Property tl]at: (i) are included
in a Final Map that was recorded prior to the January I "preceding the Fiscal Year in which the
Special Tax is being levied, and (ii) a building permit for new construction was issued on or
before May I" preceding the Fiscal Year in which the Special Tax is being levied.
'. II
"Exempt Property" means all Assessor's Parcels desiinated as being ex~mpt from Special
Taxes as provided for in Section J.
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"Final Map" means a subdivision of property by recordation of a final map"parce! map, or lot
line adjustment, pursuant to the Subdivision Map Act (California Government Code Section
66410 et seq.) or recordation of a condominium plan pursuant to California ciyil Code 1352 that
creates individual lots for which building permits may be issued without further subdivision. "
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"Fiscal Year" means the period commencing on July I of any year and ending the following
June 30. " " ,
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"Improvement Area C" means Improvement Area C of CFD No. 2005-2, as identified on the
most recent boundary map for CFD No. 2005-2 on file with the County of Riverside Recorder's
Office.
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"Indenture" means the indenture, fiscal agent agreement, resolution or other instrument
pursuant to which, Bonds are issued, as modified, amended and/or supplemented" from time to
time, and any instrument replacing or supplementing the same. '
"Land Use Type" means any ofthe types listed in Table I and/or Table 2 of Section D.
"Maximum Special Tax for Facilities" means the maximum Special Tax, for Facilities,
determined in accordance with Section' C, that can be levied by CFD No. 2005~2 within
Improvement Area C in any Fiscal Year on any Assessor's Parcel. ' ,
"Multifamily Property" means all Assessor's Parcels of Residential Property on which one or
more Multifamily Units are constructed. '
"Multifamily Unit'; means a dwelling unit'within a building comprised of attached residential
units available for sale to an end user. ,," "
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City of Lake Elsinore
Community Facilities District No. 2005-2 (Alberhill Ranch)
Improvement Area C
June 30, 2005
'Page 41
AGr:NDA ITEM NO. 'l.f
PAGE 57 OF ~n
City of Lake Elsinore
CFD No. 2005.2 (Alberhi" Ranch)
Exhibit "8"
June 30, 2005
Page B-42
Rate & Method of Apportionment
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"Non-Residential Property" means all Assessor's Parcels of Developed Property for which a
building permit was issued for any type of non-residential use.
"Partial Prepayment Amount" means the amount required to prepay a portion of the Special
Tax for Facilities obligation for an Assessor's Parcel,:as described in Section H.
"Prepayment Amount" means the amount required to prepay the Special Tax for Facilities
obligation in full for an Assessor's Parcel, as described in Section G.
"Proportionately" means that the ratio of the actual Special Tax for Facilities levy to the
applicable Assigned Special Tax for Facilities is equal for all applicable Assessor's Parcels. In
case of Developed Property subject to the apportionment of the Special Tax for Facilities under
step four of Section F, "Proportionately" in step four means that the quotient of (a) Special Tax
for Facilities less the Assigned Special Tax for Facilities divided by (b) the Backup Special Tax
for Facilities less the Assigned Special Tax for Facilities, is equal for all applicable Assessor's
Parcels. '
"Provisional Undeveloped Property" means all Assessor's Parcels of Taxable Property that
would otherwise be classified as Exempt Property pursuant to the provisions of Section J, but
cannot be classified as Exempt Property because to do so would reduce the Acreage of all
Taxable Property below the required minimum Acreage set forth in Section J for Zone I or Zone
2 as applicable. '
"Residential Property" means all Assessor's Parcels of Developed Property for which a
building permit has been issued for purposes of constructing one or more residential dwelling
units.
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"Single Family Property" means all Assessor's Parcels of Residential Property other than
Apartment Property and Multifamily Property.
"Single Family Unit" means a residential dwelling unit other than an Apartment Unit or
Multifamily Unit:
"Special Tax" means any of the special taxes authorized to be levied within Improvement Area
C by CFD No. 2005-2 pursuant to the Act.
"Special Tax for Facilities" means any of the special taxes authorized to be levied within
Improvement Area C by CFD No. 2005-2 pursuant to the Act to fund the Special Tax
Requirement for Facilities.
"Special Tax Requirement for Facilities" means the amount required in any Fiscal Year to
pay: (i) the debt service or the periodic costs on all outstanding Bonds due in the Calendar Year
that commences in such Fiscal Year, (ii) Administrative Expenses, (iii) the costs associated with
the release of funds from an escrow account, (iv) any amount required to establish or replenish
any reserve funds established in association with the Bonds, (v) an amount equal to any
anticipated shortfall due to Special Tax for Facilities delinquencies in the prior Fiscal Year, and
(vi) the collection or accumulation of funds for the acquisition or construction of facilities
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City of Lake Elsinore
Community Facilities District No. 2005-2 (Alberhill Ranch)
Improvement Area C
June 30, 2005
Page 42
AGENDA ITEM NO. Lj
PAGE, c:; K OF ~ ()
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City of Lake Elsinore
CFD No. 2005-2 (Alberhill Ranch)
Exhibit "B"
June 30, 2005
Page 8-43
Rate & Method of Apportionment
authorized by CFD No. 2005-2 provided that the inclusion of such amount does not cause an
increase in the levy of Special Tax for Facilities on Undeveloped Property ~s set forth in Step
Three of Section F., less (vii) any amounts available to pay debt service or q,ther periodic costs
on the Bonds pursuant to the Indenture.
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"Taxable Property" means all Assessor's Parcels within Improvement Area C, which are not
Exempt Property.
"Trustee" means the trustee,' fiscal agent, or paying age~t under the Indenture, '
"Undeveloped Property" means all Assessor's Parcels of Taxable Property which are not
. ' . . I
Developed Property, Approved Property or Provisional Undeveloped Property.
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"Zone" means Zone lor Zone' 2.
"Zone 1" means a specific geographic area within Improvem'ent Area C as depicted ill Exhibit B
attached hereto. '
"Zone 2" means a specific geographic area within Improvement Area C as depicted in Exhibit B
attached hereto.
SECTION B
CLASSIFICATION OF ASSESSOR'S PARCELS
Each Fiscal Year, beginning with Fiscal Year 2006-07 , each Assessor's Parcel within
Improvement Area C shall be assigned to Zone I or Zone 2 and shall be classified as Taxable
Property or Exempt Property. In addition, each Assessor's Parcel of Taxable'Property shall be
further classified as Developed Property, Approved Property, Undeveloped Property or
Provisional Undeveloped Property. In addition, each Assessor's Parcel of Developed Property
shall further be classified as Residential Property or Non-Residential Property. Lastly, each
Assessor's Parcel of Residential Property shall further be classified as a Single Family Property,
Multifamily Property, or Apartment Property, and each Assessor's Parcel of Single Family
Property and Multifamily Property shall be assigned to its appropriate Assigned Special Tax for
Facilities rate based on its Building Square Footage;'.
SECTION C
MAXIMUM SPECIAL TAX FOR FACILITIES
1. DeveloDed ProDertv
The Maximum Special Tax for each Assessor's Parcel of Single Family Property and
Multifamily Property in any Fiscal Year shall be the greater of (i) the Assigned Annual
Special Tax or (ii) the Backup Annual Special Tax. I
City of Lake Elsinore
Community Facilities District No. 2005-2 (Alberhill Ranch)
Improvement Area C .
June 30, 2005
Page 43
ACENDA ITEM NO. '
PACE~OF
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City of lake Elsinore
CFD No. 2005-2 (Alberhill Ranch)
Exhibit "8"
June 30, 2005
Page 8-44
Rate & Method of Apportionment
The Maximum Special Tax for Facilities for each Assessor's Parcel of Apartment
Property or Non-Residential Property shall be the applicable Assigned Special Tax for
Facilities described in Table I or Table 2 of Section D
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Prior to the issuance of Bonds, the Assigned Special Tax for Facilities on Developed.
Property set forth in Table I may be reduced in accordance with, and subject to the
conditions set forth in this paragraph. If it is reasonably determined by the CFD
Administrator that the overlapping debt burden (as defined in the Statement of Goals and
Policies for the Use of the Mello-Roos Community Facilities Act of 1982 adopted by the
City Council, the "Goals and Policies") calculated pursuant to the Goals and Policies
exceeds the City's maximum level objective set forth in such document, the Maximum
Special Tax for Facilities on Developed Property may be reduced (by modifying Table I)
to the amount necessary to satisfy the City's objective with respect to the maximum
overlapping debt burden level with the written consent of the CFD Administrator. In
order to reduce the Maximum Special Tax for Facilities on Developed Property it may be
necessary to reduce the Maximum Special Tax for Facilities for Undeveloped Property.
The reductions permitted pursuant to this paragraph shall be reflected in an amended .
Notice of Special Tax Lien which the City shall cause to be recorded by executing a
certificate in substantially the form attached hereto as Exhibit "A".
2. Multiple Land Use Tvpe
In some instances an Assessor's Parcel of Developed Property may contain more than
one Land Use Type. The Maximum Special Tax for Facilities levied on an Assessor's
Parcel shall be the sum of the Maximum Special Tax for Facilities for all Land Use Types
located on the Assessor's Parcel. The CFD Administrator's allocation to each type of
property shall be final.
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3. Approved Property. Undeveloped Property and Provisional Undeveloped Property
The Maximum Special Tax for Facilities for each Assessor's Parcel classified as
Approved Property, Undeveloped Property, or Provisional Undeveloped Property in any
Fiscal Yearshall be the applicable Assigned Special Tax for Facilities.
SECTION D
ASSIGNED SPECIAL TAX FOR FACILITIES
1. Developed Property
Each Fiscal Year, each Assessor's Parcel of Single Family.Property, Multifamily
Property, Apartment Property, or Non-Residential Property shall be subject to an
Assigned Special Tax for Facilities. The Assigned Special Tax for Facilities applicable
to an Assessor's Parcel of Developed Property for Fiscal Year 2006-07 shall be
determined pursuant to Table I and Table 2 below.
City of Lake Elsinore
Community Facilities District No. 2005-2 (Alberhill Ranch)
Improvement Area C
June 30, 2005
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Page 44 U
ACENDA ITEM NO. -,
PACE fao OF RO
City of lake Elsinore
CFD No. 2005-2 (Alberhill Ranch)
Exhibit "B" .
Rate & Method of Apportionment
June 30, 2005
Page 8-45
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TABLE 1
ASSIGNED SPECIAL FOR FACILITIES T AX RATES
FOR DEVELOPED PROPERTY WITHIN ZONE 1
FOR FISCAL YEAR 2006-07
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Buildin S uare Foota e
Greater than 4,250
3,951 - 4,250
3,651 ...: 3,950
3,051-3,650
2751 - 3,050
2,451-2,750
Less than or e ual to 2,450
Greater than 1,600
1,401 - 1,600
1,201 -1,400
Less than or e ual to 1,200
N/A
N/A
TABLE 2
$4,938
$4,661
$4,356
$4,000
$3 659
$3,507
Unit
Unit
Unit
Unit
Unit
Unit
ASSIGNED SPECIAL FOR FACILITIES TAX RATES
FOR DEVELOPED PROPERTY WITHIN ZONE 2
FOR FISCAL YEAR 2006-07
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Buildin S uare Foota e
Greater than 4,250
3,951-4,250
3,651 - 3,950
3,051 - 3,650
2,751-3,050
2,451-2,750
Less than or e ual to 2,450
Greater than 1,600
1,401 -1,600
1,201 -1,400
Less than or e ual to 1,200
N/A
N/A
$4,938
. $4,661
$4,356
$4,000
$3,659
$3,507
Unit
Unit
Unit
Unit
Unit
Unit
June 30, 2005
City of Lake Elsinore
Community Facilities District No. 2005-2 (Alberhill Ranch)
Improvement Area C
Page 45 ~
AGENDA ITEM NO.
PAGE-'aLOF f()
City of Lake Elsinore
CFD No. 2005-2 (Alberhill Ranch)
Exhibit "B"
June 30, 2005
Page 8-46
Rate & Method of Apportionment
2.
Approved Property. Undeveloped Property and Provisional Undeveloped Property
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Each Fiscal Year, each Assessor's Parcel of Approved Property, Undeveloped Property
and Provisional Undeveloped Property shall be subject to an Assigned Special Tax for
Facilities. The Assigned Special Tax for Facilities rate for an Assessor's Parcel classified
as Approved Property, Undeveloped Property and Provisional Undeveloped Property for
Fiscal Year 2006-07 shall be $24,110 per Acre for Zone I and $55,975 per Acre for Zone
2.
3. Increase in the Assil!ned Special Tax for Facilities
On each July I, commencing July 1,2007, the Assigned Special Tax for Facilities rate for
Developed Property, Approved Property, Undeveloped Property and Provisional
Undeveloped Property shall be increased by two percent (2.00%) of the amount in effect
in the prior Fiscal Year. .
SECTION E
BACKUP ANNUAL SPECIAL TAX FOR FACILITIES
At the time a Final Map is recorded, the Backup Special Tax for Facilities for all Assessor's
Parcels of Developed Property classified or reasonably expected to be classified as a Single
Family Property or Multifamily Property within such Final Map area shall be determined by (i)
multiplying (a) the Maximum Special Tax for Facilities rate for Undeveloped Property by (b) the U
. total Acreage of Taxable Property in such Final Map area, excluding Acreage classified as
Provisional Undeveloped Property, Acreage classified or reasonably expected to be classified as
Apartment Property or Non-Residential Property, and any Acreage reasonably expected to be
classified as Exempt Property in such Final Map area, and (ii) dividing the results in (i) by the
total number of Single Family Units or Multifamily Units reasonably expected to be constructed
within such Final Map area. The resulting quotient shall be the Backup Special Tax for Facilities
for each Assessor's Parcel of Single Family Property or Multifamily Property within such Final
Map area. The Maximum Special Tax for Facilities rate(s) applied in (i) above shall be the
applicable Undeveloped Property raie for the Zone in which each Assessor's Parcel is located;
provided, however, if an Assessor's Parcel is located in two Zones, the Maximum Special Tax
for Facilities rate applied shall be the lower of the two Maximum Special Tax for Facilities rates.
The Backup Special Tax for Facilities shall not apply to Non-Residential Property or Apartment
Property.
Notwithstanding the foregoing, if Assessor's Parcels of Developed Property which are classified
or to be classified as either Single Family Property or Multifamily Property are subsequently
changed or modified by recordation of a lot line adjustment or similar instrument, then the
Backup Special Tax for Facilities for the. area that has been changed or modified shall be
recalculated, based on the methodology above, to equal the amount of Backup Special Tax for
Facilities thatwould have been generated if such change did not take place.
City of Lake Elsinore
Community Facilities District No. 2005-2 (Alberhill Ranch)
Improvement Area C
June 30, 2005
U
Page 46 I J
AGENDA ITEM NO. "\
PAGE lod... OF RO
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City of Lake Elsinore
.cFD No. 2005-2 (Alberhill Ranch)
Exhibit "B"
June 30, 2005 .
Page B-47 .
Rate & Method of Apportionment
On each July I, commencing July I, 2007, the Backup Special Tax for Facilities rate shall be
increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year.
SECTION F
METHOD OF APPORTIONMENT OF THE SPECIAL TAX FOR FACILITIES
Commencing Fiscal Year 2006-07 and for each subsequent Fiscal Year, the City Council shall
levy Special Taxes for Facilities on all Taxable Property in accordance with the following steps:
Step One:
The Special Tax for Facilities shall be levied Proportionately on each Assessor's
Parcel of Developed Property' at up to 100% of the applicable Assigned Special
Tax for Facilities rates in Table I and Table 2 to satisfy the Special Tax
Requirement for Facilities.
Step Two:
If additional moneys are needed to satisfy the Special Tax Requirement for
Facilities after the first step has been completed, the Special Tax for Facilities
shall be levied Proportionately on each Assessor's Parcel of Approved Property at
up to 100% of the Maximum Special Tax for Facilities applicable to each such
Assessor's Parcel as needed to satisfy the Special Tax Requirement for Facilities.
Step Three: If additional moneys are needed to satisfy the Special Tax Requirement for
Facilities after the first two steps have been completed, the Annual Special Tax
. for Facilities shall be levied Proportionately on each Assessor's Parcel of
Undeveloped Property up to 100% of the Maximum Special Tax for Facilities
applicable to each such Assessor's Parcel as needed to satisfy the Special Tax
Requirement for Facilities. .
Step Four: If additional moneys are needed to satisfy the Special Tax Requirement for
Facilities after the first three steps have. been completed, then the Special Tax for
Facilities on each Assessor's Parcel of Developed Property whose Maximum
Special Tax for Facilities is. the Backup Special Tax for Facilities shall be
increased Proportionately from the Assigned Special Tax for Facilities up to
. 100% of the Backup Special Tax for Facilities as needed to satisfy the Special
Tax Requirement for Facilities. .
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Step Five:. If additional moneys are needed to satisfy the Special Tax Requirement for
Facilities after the first four steps have been completed, the Special Tax for
Facilities shall be levied Proportionately on each Assessor's Parcel of Provisional
Undeveloped Property up to 100% of the Maximum Special Tax for Facilities
applicable to each such Assessor's Parcel as needed to satisfy the Special Tax
Requirement for Facilities.
!
Notwithstanding the above, under no circumstances will the Special Tax for Facilities levied against
any Assessor's Parcel of Residential Property for which an occupancy permit for. private residential
use has been issued be increased by more than ten percent as a consequence of delinquency or default
by owner of any other Assessor's Parcel within Improvement Area C.
City of Lake Elsinore
Community Facilities District No. 2005-2 (Alberhill Ranch)
Improvement Area C
June 30, 2005
, Page 47 ~
AGENDA ITEM NO.
PACE ~7, OF 5<: 0
City of Lake Elsinore
CFD No. 2005-2 (Alberhill Ranch)
Exhibit "6"
June 30, 2005
Page 8-48
Rate & Method of Apportionment
SECTION G
PREPAYMENT OF SPECIAL TAX FOR FACILITIES
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The following additional definitions apply to this Section G:
"CFD Public Facilities" means $20,000,000 expressed in 2005 dollars, which shall increase by
the Construction Inflation Index on July I, 2006, and on each July I thereafter, or such lower
amount (i) determined by the City Council as sufficient to provide the public facilities under the '
authorized bonding program for Improvement Area C, or (ii) determined by the City Council
concurrently with a covenant that it will not issue any more Bonds to be supported by Special
Taxes for Facilities levied under this Rate and Method of Apportionment.
"Construction Fund" means an account specifically identified in the Indenture or functionally
equivalent to hold funds, which are currently available for expenditure to acquire or construct
public facilities digible under CFD No. 2005-2.
"Construction Inflation Index" means the annual percentage change in the Engineering News-
Record Building Cost Index for the city of Los Angeles, measured as of the calendar year which
ends in the previous Fiscal Year. In the event this index ceases to be published, the Construction
Inflation Index shall be another index as determined by the City that is reasonably comparable to '
the Engineering News-Record Building Cost Index for the city of Los Angeles.
"Future Facilities Costs" means the CFD Public Facilities minus public facility costs available U
to' be funded through existing construction or escrow accounts or funded by the Outstanding
Bonds, and minus public facility costs funded by interest earnings on the Construction Fund
actually earned prior to the date of prepayment. '
"Outstanding Bonds" means all previously issued Bonds issued and secured by the levy of
Special Taxes for Facilities which will remain outstanding after the first interest and/or principal
payment date following the current Fiscal Year, excluding Bonds to be redeemed at a later date
with the proceeds of prior prepayments of Special Taxes for Facilities.
The Special Tax for Facilities obligation of an Assessor's Parcel of Developed Property, or an
Assessor's Parcel of Approved Property or Undeveloped Property for which a building permit
has been issued or is expected to be issued, or an Assessor's Parcel of Provisional Undeveloped
Property may be prepaid in full, provided that there are no delinquent Special Taxes, penalties, or
interest charges outstanding with respect to such Assessor's Parcel at the time the Special Tax
for Facilities obligation would be prepaid. The Prepayment Amount for an Assessor's Parcel
eligible for prepayment shall be determined as described below.
An owner of an Assessor's Parcel intending to prepay the Special Tax for Facilities obligation
shall provide the CFD Administrator with written notice of intent to prepay. Within 30 days of
receipt of such notice, the CFD Administrator shall notify such owner of the Prepayment
Amount of such Assessor's Parcel. The CFD Administrator may charge a reasonable fee for
. providing this service. Prepayment must be made not less than 45 days prior to the next
City of Lake Elsinore
Community Facilities District No. 2005-2 (Alberhill Ranch)
Improvement Area C
June 30, 2005
u
Page 48
AGENDA ITEM NO. ~
PAce-'d::LoF rxo
City of Lake Elsinore
CFD No. 2005.2 (Alberhill Ranch)
Exhibit "B"
\
June 30, 2005
Page 8-49
Rate & Method of Apportionment.
(',
occurring date that notice of redemption of Bonds from the proceeds of such nrepayment may be
given by the Trustee pursuant to the Indenture. . i
The Prepayment Amount for each applicable Assessor's Parcel shall be calculated according to
the following formula (capitalized terms defined below):
plus
plus
plus
plus
less
less
equals
Bond Redemption Amount
Redemption Premium
Future Facilities Amount
Defeasance Cost
Administrative Fee
. Reserve Fund Credit
Capitalized Interest Credit
Prepayment Amount .
As of the date of prepayment, the Prepayment Amount shall be calculated as f~lIows:
I'
.'
1. For an Assessor's Parcel of Developed Property, compute the Assigned Special
Tax for Facilities and Backup Special Tax for Facilities, if any, applicable to the
Assessor's Parcel. For an Assessor's Parcel of Approved Property or
Undeveloped Property, compute the Assigned Special Tax for Facilities and the
Backup Special Tax for Facilities as though itwas already designated as
Developed Property based upon the building permit issued or expected to be
issued for that Assessor's Parcel.' For an Assessor's'Parcel of Provisional
Undeveloped Property compute the Assigned Special Tax for Facilities for that
Assessor's Parcel. . . .
2.: For each Assessor's Parcel of Developed Property, Approved Property,
Undeveloped Property or Provisional UndeveloJled Property tq be prepaid, (a)
divide the Assigned Special Tax for Facilities.computed pursuant to paragraph I
for such Assessor's Parcel by the sum of the estimated Assigned Special Tax for
Facilities applicable to all Assessor's Parcels of Taxable Property at buildout, as
reasonably determined by the City, and (b) divide the Backup ~pecial Tax for
Facilities computed pursuant to paragraph I for such Assessor's Parcel by the sum
of the estimated Backup Special Tax for Facilities applicable to all Assessor's
Parcels.ofTaxable Property at buildout, as reasonablydetermi~ed by the City.
. .
. .
3. Multiply the larger quotient computed pursuant to paragraph:2(a) or 2(b) by the
Outstanding Bonds. The product shall be the "Bond Redemption Amount".
. . ,
4. Multiply the Bond Redemption Amount by the applicable red~mption premium, if
any, on the Outstanding Bonds to be redeemed. with the proceeds of the Bond
Redemption Amount. This product is the "Redemption Premium."
5.
Compute the Future Facilities Cost..
I'
City of Lake Elsinore
Community Facilities District No. 2005-2 (Alberhill Ranch) .
Improvement Area C
June 30, 2005
Page 49 L-\
ACENDA ITEM NO.
PAOE.Ju~ OF ~O
City of lake Elsinore
CFD No. 2005-2 (Alberhill Ranch)
Exhibit "8"
June 30, 2005 '
Page 8-50
Rate & Method of Apportionment
6.
Multiply the larger quotient computed pursuant to paragraph 2(a) or 2(b) by the'
amount determined pursuant to paragraph 5 to determine the Future Facilities,
Cost to be prepaid (the "Future Facilities Amount").
u
7. Compute the amount needed to pay interest on the Bond Redemption Amount to'
be redeemed with the proceeds of the Prepayment Amount until the earliest
redemption date for the Outstanding Bonds.
8. Determine the actual Special Tax for Facilities levied on the Assessor's Parcel in
the current Fiscal Year which has not yet been paid.
9. Estimate the amount of interest earnings to be derived from the' reinvestment of
the Bond Redemption Amount plus the Redemption Premium until the earliest
redemption date for the Outstanding Bonds.
10. Add the amounts computed pursuant to paragraph 7 and 8 and subtract the
amount computed pursuant to paragraph 9. This difference is the "Defeasance
Cost."
11.
Estimate the administrative fees and expenses associated with 'the prepayment,
including the costs of computation of the Prepayment Amount, the costs of
redeeming' Bonds, and the costs of recording any notices to evidence the
'prepayment and the redemption. This amount is the "Administnitive Fee."
.;
u
12. Calculate the "Reserve Fund Credit" as the 'lesser of: (a) the expected reduction in
the applicable reserve requirements, if any, associated with the redemption of
Outstanding Bonds as a result of the prepayment, or (b) the amount derived by
subti~cting the new reserve requirements in effect after the' redemption of
Outstanding Bonds as a result of the prepayment from the balance in the
applicable reserve funds on the prepayment date. Notwithstanding the foregoing,
if the reserve fund requirement is satisfied by a surety bond or other instrument at
the time of the prepayment, then no Reserve Fund Credit shall be given.
'Notwithstanding the foregoing, the Reserve Fund Credit shall in no event be less
than 0, '
13. If any capitalized interest for the 'Outstanding Bonds will not have been expended
as of the date immediately following the first interest and/or, principal payment
following the current Fiscal Year, a capitalized interest credit shall be calculated
by multiplying the larger quotient computed pursuant to paragraph 2(a) or 2(b) by
the expected balance in the capitalized interest fund or account under the
Indenture after such first interest and/or principal payment. This amount is the
"Capitalized Interest Credit."
14. The Prepayment Amount is equal to the sum of the Bond Redemption Amount,
the Redemption Premium, the Future Facilities Amount;'the Defeasance Cost, and
City of Lake Elsinore
Community Facilities District No. 2005-2 (Alberhill Ranch)'
Improvement Area C
June 30, 2005
u
Page 50
AGENDA ITEM NO. '1-
PAGE lD~ OF D
City of lake Elsinore
CFD No. 2005-2 (Alberhill Ranch)
Exhibit "B"
June 30, 2005 .
Page B.51
Rate & Method of Apportionment
('1
the Administrative Fee, less the Reserve Fund Credit and the Capitalized Interest
Credit.
15.
From the Prepayment Amount, the amounts computed pursuant to paragraphs 3,
4, 10, 12, and 13 shall be deposited into the appropriate fund as established under
the Indenture and used to retire Outstanding Bonds or make debt service
payments. The amount computed pursuant to paragraph 6 shall be deposited into
the Construction Fund. The amount computed pursuant to paragraph II shall be
retained by Improvement Area B.
The Special Tax for Facilities prepayment amount may be insufficient to redeem a full $5,000
inc~ement of Bonds. In such cases, the increment above $5,000 or integral multiple thereof will
be retained in the appropriate fund established under the Indenture to be used with the next
prepayment of Bonds or to make debt service payments.
With respect to a Special Tax for Facilities obligation that is prepaid pursuantto this Section G,
the City Council shall indicate in the records of Improvement Area C that there has been a
prepayment of the Special Tax for Facilities obligation and shall cause a suitable notice to be
recorded in compliance with the Act within thirty (30) days of receipt of such prepayment to
indicate the prepayment of the Special Tax for Facilities obligation and the release of the Special
Tax for Facilities lien on such Assessor's Parcel and the obligation of such A:ssessor's Parcel to
pay such Special Taxes for Facilities shall cease.
(\
Notwithstanding the foregoing, no prepayment will be allowed unless the amount of Special Tax
for Facilities that may be levied on Taxable Property, net of Administrative Expenses, shall be at
least 1.1 times the regularly scheduled annual interest and principal payments on all currently
Outstanding Bonds in each future Fiscal Year.
SECTION H
PARTIAL PREPAYMENT OF SPECIAL TAX FOR FACILITIES
The Special Tax for Facilities obligation of an Assessor's Parcel of Developed Property, or an
Assessor's Parcel of Approved Property or Undeveloped Property for which a building permit
has been issued or is expected to be issued, or and Assessor's Parcel of Provisional Undeveloped
Property, as calculated in this Section H below, may be partially prepaid, provided that there are
no delinquent Special Taxes, penalties, or interest charges outstanding with respect to such
Assessor's Parcel at the time the Special Tax for Facilities obligation would be prepaid.
The Partial Prepayment Amount shall be calculated according to the following formula:
PP = (PG:- A) x F +A
(\
The terms above have the following~eanings:
City of Lake Elsinore
Community Facilities District No. 2005-2,(Alberhill Ranch)
Improvement Area C
June 30, 2005
A()ENDA'Iff~~o.~
PACE ft,...., ~
City of lake Elsinore
CFD ~. 2005-2 (Alberhill Ranch)
Exhibit "B"
June 3D, 2005
Page 8-52
Rate & Method of Apportionment
PP = the Partial Prepayment Amount.
PG = the Prepayment Amount calculated according to Section G.
F = the percent by which the owner of the Assessor's Parcel is partially
prepaying the Special Tax for Facilities obligation.
A = the Administration Fee calculated according to Section G.
The owner of any Assessor's Parcel who'desires such prepayment shall notify the CFD
Administrator of such owner's intent to partially prepay the Special Tax for Facilities and the
percentage by which the Special Tax for Facilities shall be prepaid. The CFD Administrator
shall provide the owner with a statement of the amount required for the partial prepayment of the
Special Tax for Facilities for an Assessor's Parcel within 30 days of the request and may charge
a reasonable fee for providing this service. ,With respect to any Assessor's Parcel that is partially
prepaid, the City Council shall (i) distribute the funds remitted to it according to Section G, and
(ii) shall indicate in the records of CFD No. 2005-2 that there has been a partial prepayment of
the Special Tax for Facilities obligation and shall cause a suitable notice to be recorded in
compliance with the Act within thirty (30) days of receipt of such partial prepayment of the
Special Tax for Facilities obligation to. indicate the partial prepayment of the Special Tax for
Facilities obligation and the partial release of the Special Tax for Facilities lien on such
Assessor's Parcel, and the obligation of such Assessor's Parcel to pay such prepaid portion of the
Special Tax for Facilities shall cease. '
u
Notwithstanding the foregoing, no partial prepayment will be allowed unless the amount of
Special Tax for Facilities that may be levied on Taxable Property after such partial prepayment, U
net of Administrative Expenses, shall be at least 1.1 times the regularly scheduled annual interest
and principal payments on all currently Outstanding Bonds in each future Fiscal Year.
SECTION I
TERMINATION OF SPECIAL TAX
For each Fiscal Year that any Bonds are outstanding the Special Tax for Facilities shall be levied
on all Assessor's Parcels subject to the Special Tax for Facilities. The Special Tax for Facilities
shall cease not later than the 2043-44 Fiscal Year, however, the Special Taxes for Facilities will
cease to be levied in an earlier Fiscal Year if the CFD Administrator has determined (i) that all
required interest and principal payments on the CFD No. 2005-2 Bonds have been paid; (ii) all
authorized facilities of CFD No. 2005-2 have been acquired and all reimbursements to the
developer have been paid, (iii) no delinquent Special Taxes for Facilities remain uncollected and
(iv) all other obligations of Improvement Area C have been satisfied.
SECTION J
EXEMPTIONS
The City shall classify as Exempt Property, in order of priority, (i) Assessor's Parcels which are
owned by, irrevocably offered for dedication, encumbered by or restricted in ,use by the State of
California, Federal or other local governm'ents, including school districts, (ii) Assessor's Parcels
City of Lake Elsinore June 30, 2005
Community Facilities District No, 2005-2 (Alberhill Ranch)'
Improvement Area C
, Page 52
ACENDA ITEM NO.
PACE (, Cl OF
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n
n
(\
City of Lake Elsinore
CFD No. 2005-2 (Alberhlll Ranch)
Exhibit "B"
June 3D, 2005
Page 8-53
Rate & Method of Apportionment
which are used as places of ,worship and are exempt from ad valorem property taxes because
they are owned by a religious organization, (iii) Assessor's Parcels which are owned by,
irrevocably offered for dedication, encumbered by or restricted in use by a homeowners'
association, (iv) Assessor's Parcels with public or utility easements making impractical their
utilization for other than the purposes set forth in the easement, (v) Assessor's Parcels which are
privately owned and' are encumbered by or restricted solely for public uses, or (vi) Assessor's
Parcels restricted to other types of public uses determined by the City Council, provided that no
such classification would reduce the sum of all Taxa):>le Property to less than 42.48 Acres for
Zone I and 8.50 Acres for Zone 2.
Notwithstanding the above, the' City Council shall not classify an Assessor's Parcel as Exempt
Property if such classification would reduce the sum of all Taxable Property'to less than 42.48
Acres for Zone I and 8.50 Acres for Zone 2. Assessor's Parcels which cannot be classified as
Exempt Property because such classification would reduce the Acreage of all Taxable Property'
to less than 42.48 Acres for Zone I and 8.50 Acres for Zone 2 will be classified as Provisional
Undeveloped Property, and will be subject to Special Taxes for Facilities pursuant to Step Five
in Section F.
SECTIONK
MANNER OF COLLECTION
The Special Tax for Facilities shall be, collected in the same manner and ~t the same time as
ordinary ad valorem property taxes, provided, however, that Improvement Area C may collect
Special Taxes for Facilities at a different time or in a different manner if necessary. to meet its
financial obligations, and may covenant to foreclose and may actually foreclose on delinquent
Assessor's Parcels as permitted by the Act.
SECTION L
SPECIAL TAX FOR SERVICES
The following additional definitions apply to this Section L:
"Developed Multifamily Unit" means a 'residential dwelling unit within a building in which
each of the individual dwelling units has or shall have at least one common wall with another
dwelling unit and a building permit has been issued by the City for such dwelling unit on or prior
to May I preceding the Fiscal Year in which the Special Tax for Services is,being levied.
"Developed Single Family Unit" means aresidential dwelling unit other'than a Developed
Multifamily Unit on an Assessor's Parcel for which a building permit has been issued by the City
on or prior to May I preceding the Fiscal Year in which the Special Tax for Services is being
levied.
"Maximum Special Tax for, Services" means the maximum Special Tax for Services that can
be levied by Improvement Area C in any Fiscal Year on any Assessor's Parcel.
City of Lake Elsinore
Community Facilities District No. 2005-2 (Alberhill Ranch)
Improvement Area C
June 30, 2005
, ' Page 53
AGENDA ITEM NO. N . '-',.
.PAGEJ(}q~
City of lake Elsinore
CFD No. 2005-2 (Alberhill Ranch)
Exhibit "B"
June 30, 2005
Page 8-54
Rate & Method of Apportionment
"Operating Fund" means a fund that shall be maintained for Improvement Area C for any
Fiscal Year to pay for the actual costs of maintenance related to the Service Area, and the
applicable Administrative Expenses. '
u
"Operating Fund Balance" means the amount of funds in the Operating Fund at th'e end of the
precedi'ng Fiscal Year.
"Service Area" means parks, open space, and storm drains,
"Special Tax for Services" means any of the special taxes authorized to be levied within CFD
No. 2005-2 pursuant to the Act to fund the Special Tax Requirement for Services.
"Special Tax Requirement for Services" means the amount determined in any Fiscal Year for
Improvement Area C equal to (i) the budgeted costs, directly related to the Service Area,
, including maintenance, repair and replacement of certain components of the Service Area which
, have been accepted and maintained or are reasonably expected to be accepted and maintained
during the current Fiscal Year, (ii) Administrative Expenses, and (iii) anticipated delinquent
Special Taxes for Services based on the delinquency rate in CFD No. 2005-2 for the previous
Fiscal Year, less (iv) the Operating Fund Balance, as determined by the CFD Administrator.
The Maximum Special Tax for Services for Fiscal Year 2005-06 shall be $242 per
Developed Single Family Unit, $121 per Developed Multifamily Unit, and $545 per Acre for
each Assessor's Parcel of Non-Residential Property. ,
On each July I, commencing July 1,2006, the Maximum Special Tax for Services shall be
increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year.
2. Duration of the SDecial Tax for Services
The Special Tax for Services shall be levied in perpetuity to fund the Special Tax
Requirement for Services, unless no longer required as determined at the sole discretion of
the City Council. '
3. Collection of the SDecial Tax for Services
The Special Tax for Services shall be collected j'n the same manner and at the same time as
ordinary ad valorem property taxes, provided, however, that Improvement Area C may
City of Lake Elsinore
Community Facilities District No. 2005-2 (Alberhill Ranch)
Improvement Area C
June 30, 2005
u
Page 54 '
AGENDA ITEM NO.
PAGE 70 OF
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'EO
(\
(\
n
City of lake Elsinore
CFD No. 2005-2 (Alberhill Ranch)
Exhibit "B"
June 3D, 2005
. Page 8055
Rate & Method of Apportionment
collect the Special Tax for Services at a different time .or in a different manner if necessary to
meet its funding requirements. .
SECTION M. .
APPEALS
Any property owner claiming that the amount or application of the Special:Tax is not correct
may file a written notice of appeal with the CFD Adminisinltornot later than twelve months after
having paid the first installment of the Special Tax that is disputed.' The CFD Administrator
shall promptly review the appeal, and if necessary, meet with the property owner, consider
written and oral evidence regarding the amount of the Special Tax, and rule on the appeal. If the
CFD Administrator's decision requires that the Special Tax for an Assessor's Parcel be modified
or changed in favor of the property owner, a cash refund shall not be made '(except for the last
year oflevy), but an adjustment shall be made to the Special TaX on that Assessor's Parcel in the
subsequent Fiscal Year(s).
The City Council may interpret this Rate and Method of Apportionment for purposes of
clarifying any ambiguity and make determinations relative to the annual administration of the
Special Tax and any landowner or residents appeals. Any decision of the City Council shall be
final and binding as to all persons.
June 30, 2005
. City of Lake Elsinore
Community Facilities District No. 2005-2 (Alberhill Ranch)
Improvement AreaC
Page 55
AGENDA ITEM NO.
PAGE-'J..LOF
~
City of lake Elsinore
CFD No. 2005.2 (Alberhill Ranch)
Exhibit "B"
June 30, 2005
Page 8-56
Rate & Method of Apportionment
u
EXHIBIT "A"
CITY OF LAKE ELSINORE AND CFD NO. 2005-X CERTIFICATE
I. Pursuant to Section _ of the Rate and Method of Apportionment of Special Tax (the
"RMA"), the City of Lake Elsinore (the "City") and Community Facilities District No. 2005-
X of the City of Lake Elsinore ("CFD No. 2005-X") hereby agree to a reduction in the
Maximum Special Tax for Facilities for Developed Property [within such Improvement Area): .
(c) The information in Table I relating to the Maximum Special Tax for Facilities for
Developed Property and/or Undeveloped Property within [Improvement Area X or CFD
No. 2005-X] shall be modified as follows:
[insert Table 1 showing effective .change to special tax rates and/or insert change to special tax
rates for Undeveloped Property)
2. Table I may only be modified prior to the issuance of Bonds.
3. Upon execution of the Certificate by the City and CFD No. 2005-X the City shall cause an
amended Notice of Special Tax Lien ffor the Improvement Area) to be recorded reflecting the
modifications set forth herein.
u
By execution hereof, the undersigned acknowledges, on behalf of the City of Lake Elsinore and
CFD No. 2005-X, receipt ofthis Certificate and modification ofthe RMA as set forth in
this Certificate.
CITY OF LAKE ELSINORE
By:
Date:
CFD Administrator
COMMUNITY FACILITIES DISTRICT NO. 2005-X
OF THE CITY OF LAKE ELSINORE
By:
Date:
June 30, 2005
u
City of Lake Elsinore
Community Facilities District No. 2005-2 (Alberhill Ranch)
. Improvement Area C
Page 56
AGENDA ITEM NO. ~ '6
PAGE 7d OF __
n
n
n
City of lake Elsinore
CFD No. 2005.2 (Alberhill Ranch)
Exhibit "8"
June 30, 2005
Page B:-S7
Rate. & Method of Apportionment
EXHIBIT "B"
ZONE MAP
City of Lake Elsinore
Community Facilities District No. 2005-2 (Alberhill Ranch)
Improvement Area C '
June 30, 2005
ACENOA ITEM ~e 57
PACE 7"t.. OF
L1
f<O
City of Lake Elsinore
CFD No. 2005.2 (Alberhill Ranch)
Exhibit "B"
Rate & Method of Apportionment
June 30, 2005
Page B-58 '
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City of Lake Elsinore
Community Facilities District No. 2005-2 (Alberhill Ranch)
Improvement Area C
ACENDA ITEM N~e 58 L-\
PACE 7&-/ OF fl...O
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City of Lake Elsinore
CFD No. 2005-2 (Alberhill Ranch)
EXHIBIT "C"
Property Owner List
August 15, 2005
Page C; 1
City of Lake Elsinore
Community Facilities District No. 2005-2
(Alberhill Ranch)
Property Owner List
PROPOSEf) CI'1) 8ClIN/WW
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CITY OF LAKE ELSINORE .
REPORT TO THE CITY COUNCIL
TO:
MAYOR AND CITY COUNCIL
FROM:
ROBERT A. BRADY, CITY MANAGER
DATE:
NOVEMBER 08, 2005
SUBJECT:
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.
BACKGROUND
Tentative Tract Map No. 31531 was approved at the regular City Council meeting
on October 14, 2003. Final Map No. 31531 represents a subdivision for
"condominium purposes" of the original tentative tract and consists of
approximately 7.91 acres. Ultimately the site will be subdivided into one (I)
residential condominium lot plus one (I) lettered lot.
DISCUSSION
Staff has reviewed and determined that the final map conforms substantially to the
approved tentative tract map and that all Conditions of Approval required at the
final map stage have been completed. As a clarifying point, the Subdivision Map
Act, Section 66427 (a) allows for the map to be approved without showing the
locations of the buildings on the final map.
FISCAL IMPACT
None.
AGENDA ITEM NO. '3
PAGE I OF "<
REPORT TO CITY COUNCIL
NOVEMBER 08, 2005
PAGE 2
RECOMMENDATION
1. Approve the final map, subject to the City Engineer's acceptance as being
true and correct.
2. Authorize the City Clerk to accept all dedications, sign the map and arrange
for the recordation.
PREPARED BY:
Ken A. Seumalo, City Engineer
APPROVED FOR
AGENDA BY:
Attachment: Final Map
AGENDA ITEM NO. S
PACE '2- OF "3
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CITY COUNCIL
NOVEMBER 8, 2005
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VICINITY MAP
FINAL MAP 31531
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AGENDA ITEM NO. 5
PAGE '3 OF 3
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CITY OF LAKE ELSINORE
REPORT TO THE CITY COUNCIL
TO:
MAYOR AND CITY COUNCIL
FROM:
ROBERT A. BRADY, CITY MANAGER
DATE:
NOVEMBER 08, 2005
SUBJECT:
APPROVAL. OF ,FINAL.. MAP NO. 31532, A
RESIDENTIAL SUBDIVISION BY n.R. HORTON
HOMES, LOCATED APPROXIMATELY ONE MILE
SOUTHEAST OF THE INTERSECTION OF GRAPE
STREET AND RAILROAD CANYON ROAD
BACKGROUND
Tentative TraCt Map No. 31532 was approved at the regular City Council meeting
on January 20, 2004. Final Map No. 31532 represents a subdivision for
"condominium purposes" of the original tentative tract map and consists of
approximately 5.16 acres that are being subdivided into one (1) residential
condominium lot plus one (I) lettered lot.
DISCUSSION
Staff has reviewed and determined that the final map conforms substantially to the
. tentative tract map and all Conditions of Approval required at the final map stage
have been completed. As a clarifying point, the Subdivision Map Act, Section
66427 (a) allows for the map to be approved without showing the locations of the
buildings on the final map.
FISCAL IMPACT
None.
AOENDA ITEM NO. (0
PACE IOF 3
',- -~-
REPORT TO CITY COUNCIL
NOVEMBER 08, 2005
PAGE 2
u
RECOMMENDA nON
1. Approve the final map, subject to the City Engineer's acceptance as being
true and correct.
2. Authorize the City Clerk to accept all dedications, sign the map and arrange
for the recordation.
PREPARED BY:
Ken A. Seumalo, City Engineer
APPROVED FOR
AGENDA BY:
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Attachment: Final Map'
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AGENDA OEM NO. to
,PACE 2 OF '5 '
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VICINITY MAP
FINAL MAP 31532
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CITY COUNCIL
n NOVEMBER 8, 2005
ACENDA REM NO. ~
PAGE., ~ _J'P ~
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CITY OF LAKE ELSINORE
REPORT TO THE CITY COUNCIL
TO:
MAYOR AND CITY COUNCIL.
FROM:
ROBERT A. BRADY, CITY MANAGER
DATE:
NOVEMBER 08, 2005
SUBJECT:
L
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
ARDEN WOOD WAY AND STATE ROUTE 74.
BACKGROUND
Centex Homes is in the process of constructing homes in the Ramsgate Specific
Plan area east of the 1-15 Freeway off of State Route 74. Part of the requirements
of the development is the construction of traffic signals at Rosetta Canyon and
State Route 74, Trellis Lane and State Route 74 and Ardenwood Way and State
Route 74.
DISCUSSION
As a part of the Caltransprocess for encroachment, the State requires that an
agreement be executed with the City, describing the financial responsibility of each
agency as it relates to construction and maintenance. Described in the attached
document is that the City will be responsible for the cost of construction of the
traffic signals and the energy costs. As stated above, Centex homes will construct
the traffic signals as a requirement of their development project. Further, the
agreement also specifies that Caltrans will be responsible for equipment
maintenance and operation costs. This document was forwarded to the City
Attorney's office and was approved as to form.
FISCAL IMPACT
Energy costs for the signal will be covered by the City's Lighting and Landscaping
Maintenance District (LLMD). The annual energy cost per signal is approximately
ACENDA ITEM NO.---.J
PACE I OF S-
---.---. ---, ~ -,- -.- - - -- ---
--.- --.-. -- ..-----...
REPORT TO CITY COUNCIL
NOVEMBER 08, 2005
PAGE 2
$1,700. Construction of the signal will be theresponsibility of Cent ex Homes as a
part of the street improvement portion of the "development project. The agreement
also indicates that the City will be obligated to pay for the maintenance and
operation of the internally illuminated street sign. City Standard street signs are
reflective and not internally illuminated so there will be no energy costs associated
with the street signs.
RECOMMENDATION
I. Approve the agreement with Caltrans and direct the City Manager to execute
the document for processing.
PREPARED BY:
APPROVED FOR
AGENDA BY:
Attachment: Location Map
Agreement
Ken A. Seumalo, City Engineer 'fIb
AGENDA ITEM NO. I
PACE 2. OF S-
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VICINITY MAP
CAL TRANS AGREEMENT FOR
SIGNAL CONSTRUCTION AND MAINTENANCE
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PROJECT SITES
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(\ CITY COUNCIL
NOVEMBER 8, 2005
AGENDA REM NO. '7
PAGE,~ OF ~
Cost Distribution Agreement for Traffic Signals and Lighting
Project Location: Route 74 at Ardenwood Way, Rosetta Canyon Drive and
Trellis Lane, City of Lake Elsinore
u
City of Lake Elsinore will install traffic signals and safety lighting on Route 74
at Ardenwood Way, Rosetta Canyon Drive and Trellis Lane. City and State
agree to cost distribution stated below.
Maintenance and Electrical Energy Costs
Commencing upon construction and continuing until determined otherwise by
mutual agreement, City of Lake Elsinore agrees to pay for 100% of the ongoing
electrical energy costs for the traffic signals and safety lighting. at the.
intersections.
Caltrans will own, maintain and operate the traffic signal and lighting systems
and pay 100% of the maintenance and operating costs.
Maintenance, Repair and Replacement of Emergency Vehicle Preemption System
,
City of Lake Elsinore will install Emergency Vehicle Preemption Systems. All U
costs for the maintenance, repair and replacement of systems are the
responsibility of City of Lake Elsinore.
When necessary for repair or replacement, Caltrans' will test, remove and
reinstall Preemption Systems upon notification by City.
Maintenance and Materials for Internally Illuminated Street Name Signs
City of Lake Elsinore agrees to purchase all materials for installation and
ongoing maintenance of the internally illuminated street name signs, including
signs, sign panels and all hardware.
Caltrans agrees to maintain the intemally illuminated street name signs.
Caltrans will notify City of Lake Elsinore when materials are required for repair
and maintenance of the signs.
At any time City of Lake Elsinore wishes to terminate this agreement, the signs
will be replaced with signs of reflective sheeting.
()
AGENDA ITEM NO. I
PAGE L/ OF ~
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Cost Distribution Agreement
Route 74 at Ardenwood Way, Rosetta Canyon Drive and Trellis Lane
Page 2
Approved by:
City of Lake Elsinore
Agency
Caltrans
Agency
Signature
Date
Signature
Date
Title
Electrical Superintendent
Title
2
7
AGENDA ITEM NO.
PACE S OF 5
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CITY OF LAKE ELSINORE
REPORT TO THE CITY COUNCIL
TO:
MAYOR AND CITY COUNCIL
FROM:
ROBERT A. BRADY, CITY MANAGER
DATE:
NOVEMBER 08, 2005
SUBJECT:
AGREEMENT BETWEEN CALTRANS AND THE CITY
. OF . LAKE ELSINORE FOR THE COST OF
CONSTRUCTION AND MAINTENANCE OF THE
. SIGNAL' AT RIVERSIDE DRIVE AND HIGH SCHOOL
ENTRANCE.
BACKGROUND
A new high. school was constructed on Riverside Drive near Roadrunner Lane.
The traffic generated by the faculty, students and parents as a result of the new
high school is anticipated to warrant a traffic signal. As a part of the school
construction, the School District is responsible for the construction of street
improvements including widening and installation of a traffic signal. Riverside
Drive, in this area, is owned by the California State Department of Transportation
(Caltrans) therefore, once constructed, it will be within Caltrans jurisdiction.
DISCUSSION
As a part of the Caltrans process for encroachment, the State requires an agreement
with the City describing the financial responsibility of each agency as it relates to
construction and maintenance. The attached document indicates, that the City will
be responsible for the cost of construction of the traffic signal andthe energy costs.
As stated above, the School district will construct the signal and turn it over to
Caltrans once it has been completed. Further, the agreement also specifies that
Caltrans will be responsible for the cost of equipment maintenance and costs
related to traffic signal operations. This document was forwarded to the City
Attorney's office and was approved as to form.
AOENDA ITEM NO. Y
PAGE---L-OF S-
REPORT TO CITY COUNCIL
NOVEMBER 08, 2005
PAGE 2
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FISCAL IMPACT
Energy costs for the signal will be covered by the City s Lighting and Landscaping
Maintenance District (LLMD). The annual energy cost per signal is approximately
$1,700. Construction of the signal will bethe responsibility oflhe School District
as a part of the street improvement portion of the high school project. The
agreement also indicates that the City will be obligated to pay forthe maintenance
and operation of the internally illuminated street sign. City Standard street signs
are reflective and not internally illuminated so there will be no energy costs
associated with the street signs.
RECOMMENDATION
1. Approve the agreement with Caltrans and direct the City Manager to execute
the document for processing.
PREPARED BY:
Ken A. Seumalo, City Engineer ~
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APPROVED FOR
AGENDA BY:
Attachment: Location Map
Agreement
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AGENDA ITEM NO.
PAGE ;1..
y
OF S-
o
VICINITY MAP
CALTRANSAGREEMENTFOR
SIGNAL CONSTRUCTION AND MAINTENANCE
AGENDA ITEM NO. q
PAGE ~ OF S-
1
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Cost Distribution Agreement for TrafBc Signals and Lighting
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Project Location: Route 74 at School Entrance Driveway, City of Lake
. Elsinore
City of Lake Elsinore will install traffic signals and safety lighting on Route 74
at School Entrance Driveway. City and State agree to cost distribution stated
below.
Maintenance and Electrical EneIlN Costs
Commencing upon construction and continuing until determined otherwise by
mutual agreement, City of Lake Elsinore agrees to pay for 100% of the ongoing
electrical energy costs for the traffic signals and safety lighting at the
intersection.
Caltrans will own, maintain and operate the traffic signal and lighting system
and pay 100% of the maintenance and operating costs.
Maintenance. Reoair and Reolacement of Emenzencv Vehicle Preemotion Svstem
City of Lake Elsinore will install an Emergency Vehicle Preemption System. All
costs for .the maintenance, repair and replacement of system are the
responsibility of City of Lake Elsinore.
u
When necessary for repair or replacement, Caltrans will test, remove and
reinstall Preemption System upon notification by City.
Maintenance and Materials for Internallv Illuminated Street Name Sil!Ils
If installed, City of Lake Elsinore agrees to purchase all materials for
installation and ongoing maintenance of internally illuminated street name
signs. including signs, sign panels and all hardware.
Caltrans agrees to maintain the. internally illuminated street name signs.
Caltrans will notify City of Lake Elsinore when materials are required for repair
and maintenance of the signs.
At any time City of Lake Elsinore wishes to terminate this agreement, the signs
will be replaced with signs of reflective sheeting.
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AOEN::' ~o"., 'S-
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CITY OF LAKE ELSINORE
REPORT TO THE CITY COUNCIL
TO:
MAYOR AND CITY COUNCIL
FROM:
ROBERT A. BRADY, CITY MANAGER
DATE:
NOVEMBER 8, 2005
SUBJECT:
POE STREET PAVEMENT REHABILITATION
CHANGE ORDER NO.1 - LINDSAY STREET REPAIRS
BACKGROUND
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On October 25, 2005, City Council awarded a contract to Roadway Engineering
for Poe Street improvements. Construction will start on Nov. 14, 2005. It has
been brought to staffs attention that Lindsay Street, between Heald Avenue and U
Sumner Avenue is in need of immediate repair considering that the pavement has
deteriorated and a new pavement is needed to replace the existing one. Staff has
also confirmed that it would be more cost effective and time efficient if the
contractor for Poe Street (Roadway Engineering) re-construct the pavement on
Lindsay Street in conjunction with the Poe Street project.
DISCUSSION
Lindsay Street requires pavement rehabilitation in the form of pavement grinding
and asphalt overlay. There is a convenient window of opportunity whereby Poe
Street's contractor repair Lindsay Street during the Thanksgiving week when the
adjacent school is in recess. With Lindsay Street's close proximity to Poe Street,
the contractor has given the City an estimate of $59,800 to repair and replace the
pavement on Lindsay Street. The contractor has agreed to begin work on
November 21, 2005 and complete the work by the end of the week. School
officials have requested that the work be done while students are on Thanksgiving
break.
AG9U)A1TEM NO.~
PAOE~
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REPORT TO CITY COUNCIL
NOVEMBER 8, 2005
PAGE 2
FISCAL IMPACT
The construction cost forthis extra work (Change Order No.1) is $59,800. Total
costs which includes the construction cost plus ten percent (10%) contingency, soil
testing, surveys and inspections is $75,000. Funds for this project are available
from the Transportation Improvement Fund (TIF).
RECOMMENDATION
That the City Council:
1.
2.
Approve Change Order No.1 for $59,800 for Roadway Engineering.
Approve the use of $75,000 from the TIF account (Fund #205) for this
project.
Authorize the City Manager to execute Change Order No. 1 with
Roadway Engineering for $59,800.
3.
PREPARED BY:
David S. Solomon, Associate Civil Engineer
REVIEWED BY:
Ken A. Seumalo, City Engineer
APPROVED FOR
. AGENDA BY:
ATTACHMENTS: Location Map
Estimate for Lindsay 81. Work
AGENDA ITEM NO. C1 4
pAGl; 2. OF _
VICINITY MAP
LINDSAY STREET REPAIRS
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CITY COUNCIL
NOVEMBER 8, 2005
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AGENDA ITEM NO.--1
PAGE 3 OF L.j.
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CITY OF LAKE ELSINORE
130 South Main Street
Lake Elsinore, CA 92530
(951) 674-3124
PROJECT CHANGE ORDER
Change Order # : 1
Date: October 31, 2005
THIS CHANGE ORDER IS APPLICABLE TO:
CITY PROJECT #:
4260
CONTRACT AWARDED TO:
PROJECT TITLE:
Poe Street Improvements
Roadway Engineering
3357 Gingerwood Road
Ontario, CA 91761
. (951) 360-6834
DATE AWARDED: 10/25/05
SCHEDULED COMPLETION: 12/29/05
AUTHORIZED BY: Ken A Seumalo, Citv Enqineer
TOTAL AMOUNT OF CONTRACT
PRIOR TO THIS CHANGE ORDER:
$83,987,00
n CONTRACTOR IS AUTHORIZED TO MAKE THE FOllOWING CHANGES:
The bid quantities are adjusted to actual quantities installed as.follows:
ITEM QUANTITY UNIT PRICE . EXTENSION
Pulverize existina oavement on 26,000 SF $2.30 $59,800.00
Lindsav Street between Heald and
Sumner Ave and olace three (3\ .
Inches of AC over camaacted base.
. . .
.
SUBTOTAL $59,800.00
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AGENDA MM NO. q
PAOE.-!:L.PF 'i
CITY OF LAKE ELSINORE
REPORT TO CITY COUNCIL
TO:
MAYOR AND CITY COUNCIL
FROM:
ROBERT A. BRADY, CITY MANAGER
. NOVEMBER 8, 2005 .
SELECTION OF AUDIT FIRM TO PERFORM AGREED
UPON PROCEDURES RELATED TO CERTAIN BOND
TRANSACTIONS
DATE:
SUBJECT:
BACKGROUND
On October 4,2005, the City sent out a Request For Proposal (RFP) to firms to
perform "agreed upon procedures" related to certain bond transactions. The
procedures are identified in the RFP which starts on page 24 of 31. The firms were
taken froma list of firms provide by the City Treasurer.
DISCUSSION
Two firms responded and both firms are qualified. The proposed costs varied as
follows:
Vavrinek, Trine, Day & Co., LLP
$10,500
Diehl, Evans & Company, LLP
$5,900 to $7,900
Diehl, Evans & Company, LLP are the City's current independent auditors. They
are working on their first year of a three year contract.
FISCAL IMPACT
The City Council's FY 2005-06 budget includes $10,000 for the audit.
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AGENDA ITEM NO. \ C
PAGE I OF 3/
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REPORT TO CITY COUNCIL
NOVEMBER 8, 2005
PAGE 2
RECOMMENDATION
The City Treasurer recommends selecting Vavrinek, Trine, Day & Co., LLP
because he believes they will be more independent and neutral than the current
City Auditors. .
PREPARED BY:
APPROVED FOR
AGENDA BY:
MATT N. PRESSEY
DIRECTOR OF AD NISTRATIVE SERVICES
ACENDA rmJI NO. \ 0
PACE a . OF.-3l-
-Pl
Vavrinek, Trine, Day & Co., LLP
Certified Public Accountants & Consultants
Proposal
To The
City of Lake Elsinore
For
Agreed Upon Procedures Related to
Certain Bond Issues
October 26, 2005
Submitted by
Vavrinek Trine Day & Co., LLP
VALUE THE DIFFERENCE
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ACENDA ITEM NO.
PAGE :;
\0 C)
OF31
8270 Aspen Street Rancho Cucamonga, CA 91730 Tel: 909.466.4410 Fax: 909.466.4431 www.vtdcpa.com
FRESNO . LAGUNA HillS . PALO ALTO . PLEASANTON . RANCHO CUCAMONGA . SAN JOSE
-Ill
Vavrinek, Trine, Day & Co., UP
Certified Public Accountants & Consultants
VALUE THE DIFFERENCE
("\ October 26, 2005
Attn: Matt Pressey, Director of Administrative Services
City of Lake Elsinore
130 S. Main Street
Lake Elsinore, CA 92530
Re: RFP Agreed Upon Procedures Related to Certain Bond Issues
Dear Mr. Pressey:
The firm ofVavrinek Trine Day &'Co., LLP is pleased to present this proposal to perform agreed
upOn procedures related to certain bond issues. The engagement will provide the City of Lake
Elsinore with answers to its concerns regarding the bond issues in question.
(\
The official name of the firm is Vavrinek Trine Day & Co., LLP.. The Rancho Cucamonga office
serves as the company's headquarters and currently houses all the staff contemplated for this.
engagement. The firm's federal identification number is 95-2648289. Both Mr. Joe Aguilar and
Mr. Kevin Pulliam are authorized to obligate our firm. We accept all the terms and conditions
contained in the City's RFP. Our address, telephone numbers and email addresses are as follows:
Vavrinek Trine Day & Co., LLP .
8270 Aspen
P.O. Box 2900
Rancho Cucamonga, CA 91729
Email forJoeAguilar:iaguilar@.vtdeoa.com
Email forKevinPulliam:kpulliam@.vtdcoa.com
We hope that as you read through our proposal, you recognize the philosophy of our firm is to
provide each client with exceptional service, experienced staff and an'overall working approach
. that will fit your needs. Should you have any questions, please call either Kevin Pulliam or
myselfat (909) 466-4410.
;moereIY~
l:J:oril~
OfVavrinek Trine Day & Co., LLP
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AGENDA ITEM NO.
PAGE 4
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OF -3...L-
8270 Aspen Street Rancho Cucamonga, CA 91730 Tel: 909.466.4410 Fax: 909.466.4431 www.vtdcpa.com
FRESNO . LAGUNA HILLS . PALO ALTO . PLEASA~TON . RANCHO CUCAMONGA . SAN JOSE
Executive Summary
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The pmpose of the engagement is to assist the City of Lake Elsinore in determining compliance
with certain terms of the Abbacy Holding Company agreement and related bond transaction. The
key reasons to utilize Vavrinek Trine Day & Co., LLP are as follows:
. Partners Joe Aguilar and Kevin Pulliam will deliver the majority of services related to the '
assignment. The work of the' assignment is only as 'good as the people who deliver the
service.
· Vavrinek Trine Day & Co., LLP is a good size regional firm with resources greater than
those of our local competitors. The CPA firm has been existence over 57 years and has
28 partners and about 200 staff members. '
· Mr. Joe Aguilar is a former investment banker that packaged Mello-Roos bond issues on
the private side and as a former city,finance director managed development agreement
arrangements as a city official.
· Vavrinek Trine Day & Co., LLP performed a similar assignment at' the City of Modesto
that covered seven Mello Roos Districts and over twenty development agreements. U
· Vavrinek Trine Day & Co., LLP is a leader in governmental auditing and accounting in
California and devotes over 70% of its resources to governmental work.
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Project Approach
The purpose of the engagement is to assist the City of Lake Elsinore in determining compliance.
with the reimbursement arrangements entered into w:ith the City and Abbacy Holding Company.
Vavrinek Trine Day & Co., LLP, will issue,areport to the City Council describing the procedures
followed for the engagement and the findings resulting from our work.
To effectively perform the scope of services, Vavrinek Trine Day & Co. will initiate its work by:
. Developing an understanding of the City's bond documents, reimbursement agreements and
existing policies, including practices, and procedures surrounding the bond issue and
development agreements.
. Interview developer representatives, city staff and officials involved in oversight and
management of the arrangements related to the reimbursements and bond issue.
. . Inspect relevant documents that substantiated the financial activity surrounding the
reimbursemt;nts made by the City to the Developer Company.
To perform the scope of work desired by the City, we may meet with City officials to devise
detailed procedures that expaud upon the scope of work noted in the RFP.' We desire to
meet the City's expectations and clarifications will be documented in writing.
In the process of our engagement we will:
. Hold an initial meeting with City staff and officials for clarifYing the expectations of the
assignment.
. Meet with the developer at the beginning of the engagement to understand their
perspective of the reimbursement arrangements.
· Inspect the bond documents, development agreement and other written matters that
substantiate the arrangements between the City and the developer.
. We.will summarize our understanding of the arrangements and if needed meet with the
City and developer for clarification.
. We will reconcile the understood arrangements to the documentation substantiating the
reimbursement activitY.
. We will tie the documented financial activity to the bond transaction.
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Firm Qualifications
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Vavrinek Trine Day & Co., LLP is a large regional finn with our main office located in Rancho
Cucamonga, We currently have 28 partners with a total staff of over 200. Twenty-three of our
partners devote a majority of their time in managing governmental audits and consulting
engagements for local governmental agencies. Other areas of our practice include bank auditing
and consulting, commercial auditing and consulting, tax and bookkeeping services. Our finn is
licensed as a certified public accounting finn in the State of California. Presently, we also have
full service offices in Laguna Hills, Fresno, Palo Alto and Pleasanton.
Vavrinek Trine Day & Co., LLP provides a unique blend of experience, technical, knowledge
and management expertise that can only be found in an organization that has served the
accounting profession since 1948. We currently provide auditing and consulting services to over
.200 governmental agencies including 25 cities.
For several years, Vavrinek Trine Day & Co. has met the SEC Private Companies Practice
Section requirements by having its accounting and auditing practice is subject to the scrutiny of
peer review program. A copy of the peer review opinion letter can be provided upon request.
The peer review is conducted in accordance with the American Institute of Certified Public
Accountants (AICP A) standards which. allows us to be a member of the Private Companies
Practice Section of the AICPA. In fulfilling these requirements, our finn also belongs to the U
Western Association of Accounting Finns (W AAF) for our peer review program.
The !inn has four partners who dedicate their full time to perfonning consulting services to
governmental clients. This work compliments our auditing services in that industry and blends
the auditing perspective to a practical approach in delivering financial services to local
governments.
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Team Qualifications
The services requested by the City of Lake Elsiuore will derive its value from the quality of
people performiug the work. For this reason, our proposal includes a multi-disciplined team
comprised of Mr. Joe Aguilar, Mr. Kevin Pulliam, and Mr. Brent Miller. The blend of our skills
and background brings together the best talent and resources for completing your assignment.
Our services and professioual background are not the same as those offered by other audit
firms. Prior to joining VTD, Mr. Joe Aguilar worked for an investment banking firm and
packaged municipal bond issues for several years. Aside from being an audit partner for the
County of Riverside and the County of San Bernardino, Mr. Kevin Pulliam presently serves as a
public agency Controller and Treasurer for the Water Facilities Authority and manages the
financial aspects of the entity.
A couple of years ago, Mr. Aguilar completed a similar assignment for the City of Modesto
covering seven Mello-Roos District. In that assignment, the reimbursement arrangements with
several developers were scrutinized and validated by in depth performance and financial audits.
The majority of services to be rendered will.be performed by firm Partner Joe Aguilar (a former
City Finance Director:and Investment Banker). Mr. Aguilar will serve as the project leader for
the engagement and will be performing the majority of the hours in ascertaining compliance with
the terms ofthe development agreement. .
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Mr. Kevin Pulliam is a hands-on auditor and spends a majority of his time in the field
reviewing the progress of his engagements. Currently, Mr. Pulliam is the engagement partner
for two large county audits, numerous city audits, several school districts, and nonprofit entity
audits. Mr. Pulliam serves as the Treasurer-Controller for the Water Facilities Authority and
directs the delivery of financial services to this joint~powers authority. Mr. Pulliam will serve as
review partner and will verifY that sufficient documentation can be substantiated for concluding
our firm's assertions on the engagement.
Mr. Brent Miller will also assist in completing the engagement and specializes in providing
consulting services to cities and counties. Mr. Miller is a former city accounting manager and
has an expertise in reviewing bond transactions. Mr. Miller has over 17 years of municipal
finance experience and currently serving an assigrunent as the interim finance manager for the
City of Azusa. Mr. Miller will verifY that the bond proceeds were used for its intended purpose
and document the financial activity surrounding the use of bond proceeds.
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Similar Engagements and References
City of Modesto:
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Vavrinek Trine Day & Co., completed a performance audit and several years of financial audits
on the City of Modesto's seven Mello Roos Districts~
Contact
George Britton, City Manager
(209) 577-5404
Email gbritton@modestogov.com
City of Modesto
1010 Tenth Street
P.O. Box 642
. Modesto, CA 95353
City of Dublin:.
Vavrinek Trine Day & Co., LLP assisted the City in summarizing it financial obligations for
various agreements surrounding new development in the East Dublin Specific Plan. Mr. Joe
Agnilar also served as their interim Administrative Services Director for 11 months and helped
administer the strategic planning regarding the financial arrangements needed for the East Dublin
Specific Plan. ' .
Contact
Richard Ambrose, City Manager
(925) 833-6650
Email Richard.Ambrose@ci.dublin.ca.us
City of Dublin
100 Civic Plaza.
Dublin, CA 94568
City of Burbank:.
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Contact Vavrinek Trine Day & Co., LLP has served as the City's internal auditors for the past
five . years and provides internal. auditing and consulting advice on a variety of special
assignments.
Contact
Bob Elliot, Asst. Financial Services Director
(818) 238-5500
Email belliot@ci.burbank.ca.us
City of Burbank
275 East Olive Avenue
P.O. Box 6459
Burbank, CA 91510
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Vavrinek, Trine, Day & Co., LLP***Audit Team
JOE AGUILAR
Partner
Firm Position
Length of Service
Professional
Background
Professional
Affiliations
Education
Partner
Vavrinek, Trine, Day & Co., LLP
Certified Public ,Accountants
With VTD & Co., LLP since 1994, 26 years financial experience
Worked 15 years in city government and two years in the
investment banking industry.
Has extensively worked in the areas of year-end accounting
services, fraud audits, bank reconciliations, cash flows, and
executive recruitment. Worked as the Director of Finance for two
cities with responsibilities over cash management, budgeting,
accounting, data processing, debt-management, risk
management, purchasing, and various other administrative
functions. Also worked as an Assistant Finance Director and
Accountant for other cities.
Mr. Aguilar has completed several management studies and
financial feasibility studies. . Provides on-going cash management
and investment consulting to public agencies. A frequent lecturer
and speaker on cash management and bonded debt. Formulated
first time GFOA award whining annual financial reports (CAFR's)
for two different cities. Developed long-range capital
improvement plans and financing strategy plans for various public
agencies.
Served as a licensed investment banker and a financial advisor
for an investment banking firm. Extensive knowledge and
background in the areas of bonded debt, internal auditing,
redevelopment, Developer fees, Mello-Roos districts, arbitrage
rebate calculations, insurance joint powers agencies, and.
investment strategies. .
Government Finance Officers Association (GFOA)
California Society of Municipal Finance Officers (CSMFO)
Bachelor of Arts - Business Administration
University of La\ie~ne, LaVerne, CA
"The CPA Firm you can trust for Personalized Service"
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KEVIN PULLIAM, CPA
Audit Partner
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Firm Position
Audit Partner
Vavrinek, Trine, Day & Co., LLP
Certified Public Accountants
Length of Service
August 1986 to Present
Professional
Background
Supervised audits for numerous governmental agencies,
including the majority of cities audited by the firm, redevelopment
agencies, special assessment districts, and joint powers
agreements (JPA's). Also assisted in several county audits,
county office audits, and performed various management
services functions.
Appointed Treasurer for the Water Facilities Authority in Upland,
California.
Responsible for staff training in the area of governmental auditing.
Developed and updated governmental audit programs and
checklists used by the firm for the municipal practice.
Responsible for several service work assignments which
included: assisted in year-end closing; prepared year-end U
summaries and financial statements for certificate of participation
issuances; federal and state grant reviews; and forecast reports
for long-term debt issuances.
Provided in-house training for federal and state grants, federal
and state compliance, a11d governmental auditing.
Professional
Affiliations
American Institute of Certified Public Accountants
California State Society of Certified Public Accountants
California Society of Municipal Finance Officers
Education
Bachelor of Science - Accounting - 1986
California State Polytechnic University, San Luis Obispo
Continuing
Professional
Education
Has attended numerous governmental and other professional
continuing education courses throughout each year
'The CPA Firm you can trust for Personalized Service"
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Vavrinek, Trine, Day & Co., LLP * * *Audit Team
BRENT MILLER
City Consultant
Firm Position
Length of Service
Professional
Experience
Professional
Affiliation
Education
City Consultant
Vavrinek, Trine, Day & Co., LLP
Certified Public Accountants
1998 to present, over 19 years financial experience, including
15 years with public agencies
Served as an Accounting Manager and a Senior Accountant
for two different cities. Spent 11 years working in municipal
government. Responsible for and supervised all accounting
functions, including accounts payable, payroll, accounts'
receivable, collections, month-end and year-end closings.
Prepared reports for various governmental agencies and
produced monthly reports for City Department Heads and
City Council. Responsible for recording all bank accounts.
Supervised all the audits and provided data for the auditors.
Also had an extensive roll in preparing the annual budget.
Supervised other accountants and technicians. Assisted in
preparation of award winning CAFR's from both the CSMFO and
the GFOA. Prepared reports for various governmental agencies
and produced monthly reports for City Department Heads.
Extensive experience preparing City and Redevelopment Agency
State Controller's report, Statements of Indebtedness, Annual
Street Reports, and quarterly investment reports. Currently
specialize in preparing these reports in addition to arbitrage
calculations, year-end closing assistance, interim Finance
Director work, bank reconciliations, and proofs of cash. Also,
experience preparing Block Grant reports, State Mandated Cost
Reimbursement reports, COPS Grant reporting, and State Fuel
Excise Tax reports.
Government Finance Officers Association (GFOA)
Bachelor of Arts - Accounting
Goshen College, Goshen, Indiana
"The CPA Firm you can trust for Personalized Service"
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We estimate a fee of $10,500 for the engagement. The City shall make payment due under this
contract as the work is completed and upon receipt of the invoices. Services will be billed for
actual hours provided each month.
Additional Services
. All additional services beyond the scope of the services included in the request for proposal will
be billed at the following rates:
Partner
Manager
Supervisor
Senior Accountant
Staff Accountant
Clerical
$200
$160
$140
$110
$80.
$50
Additional services will be billed for actual hours provided each month.
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ACENDA ITEM NO. r 6
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... ..... .........DIEHL, EVANS&CQMPANY, LLP
.. .. .... .... ...CERTlFIEDPUBUCACCOUNTANTS&CONSULTANTS
2121 ALmN PARKWAY. SUITE 100
IRVINE. CALIFORNIA 92606-4956
(949) 399-0600. FAX (949) 399~1O
www.diehlevans.com
October 27, 2005
MICHAEL R. WDIN. CPA
CRAJG W. SPRAKER, CPA
NITlNP.PA'I'EL.."CPA
ROBERT J. CALLANAN, CPA
*PHD.lP H. HOl..TKAMP. (]>A
~M.PERLOWSKl.cPA
.HARVEY J. SCHROEDER. CPA
KENNETH R. AMPS. (]>A
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A PARlNERSlDPINCLUDING ACCOUNTANCY CORPORATIONS
-APROFESSIONALCORPORAnON
Mr. Matt N. Pressey
Director of Administrative Services
City of Lake Elsinore
130 South Main Street
Lake Elsinore, CA 92530
Dear Mr. Pressey:
We have submitted a separate proposal to perfonn an agreed~upon procedures engagement for the City
of Lake Elsinore, With this transmittal letter, we are submitting the attached fee quotation.
. We estimate that our fee will range from $ 5,900.00 to $ 7,900.00, depending on the ainount of work
required; and the number of meetings we may need to schedule with City officials. Our hours and
hourly rates on the attached schedule assume a$ 5,900.00 fee.
n Please contact me if you have any questions.
Very truly your,
Diehl, Evans & Company, LLP
B;1N~ ~,. VV\ In If-
William S. Morgan, CPA
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OTHER OFACES AT;
2965 ROOSEVELT STREET
CARl.SBAD. CALIFORNIA 92008-2389
060) 729-~3. FAX (760) 729-2234
613 W. VAlLEY PARKWAY, SUITE 330
ESCONDIDO. CAlIFORNIA 92025-2598
(760) Jtb~OA~tf rJb~90 \ 6
PACE~OF~
FEEOUOTATION
We estimate our fee on this engagement to be $ 5,900.00, computed as follows;
Nitin P. Patel 2 hours x $ 200.00 = $ 400.00 U
William S. Morgan 12 hours i- 195.00 = 2,340.00
Daphnie Fuertez 16 hours x 120.00 = 1,920.00
Senior Accountant 12 hours x 75.00 = 900.00
Travel, other out-of -pocket and c~erica1 340.00
Total Estimated Fee $ 5.900.00
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CITY OF LAKE ELSINORE
PROPOSAL TO PERFORM AN AGREED-UPON PROCEDURES
REVIEW OF CERTAIN TRANSACTIONS RELATED TO
COMMUNITY FACILITIES DISTRICTS 91-2 AND 98-1
OCTOBER 27, 2005
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CITY OF LAKE ELSINORE
TABLE OF CONTENTS
OCTOBER 27, 2005
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Page
Number
Cover Letter I
Executive Summary 2
Project Approach 3
Firm Qualifications 4
Team Qualifications 4
References 4
Resume ...,- Nitin P. Patel; CPA 5
Resume- William S. Morgan, CPA 6 U
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. .' . DIEHL, EVANS & COMPANY,LLP
.. ...... .' CERTIFIEDPUBUCACCOUNTANTS & CONSULTANTS
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A PARTNERSffiP INCWDING ACCOUNTANCY CORPORATIONS
MICHAEL R WOIN, CPA
CRAIG W. SPRAKER. (]>A
NITIN P.PATEL, CPA
ROBERT J. CAliANAN. CPA
*PIm.1P lL HOLTKAMP. CPA
'"THOMAS M. PERLOWSKI. CPA
-HARVEY J. SCHROEDER. CPA
KENNETH R. AMES. CPA
2121 ALTON PARKWAY, SUITE 100
IRVINE. CALIFORNIA 92606-4956
(949) 399-0600. FAX (949) 399-0610
www.diehlevans.com .
OA PROFESSIONAL CORPORATION
October 27, 2005
Mr. Matt N. Pressey
Director of Administrative Services
City of Lake Elsinore
130 South Main Street
Lake Elsinore, CA 92530
Re: Agreed-Upon Procedures Review
Dear Mr. Pressey:
We are pleased to present our proposal to perform an agreed-upon procedures review of certain
transactions related to two of the City's Community Facilities Districts - CFD 91-2 and CFD 98-1.
(\ This proposal has been prepared in accordance with the instructions in your request for proposal.
As you are aware, Diehl, Evans & Company, LLP currently serves as the City's auditors pursuant to an
"Agreement for Professional Services" (the Audit Agreement) dated May 31, 2005. The Proposal
. attached to the Audit Agreement sets forth, our firm's qualifications and other information requested in
this proposal and, therefore, the Audit Agreement is incorporated by reference in this proposal.
If we are selected for this engagement, all work will be planned, supervised and reviewed by William
S. Morgan, CPA, the firm's Director of Consulting Services. Mr. Morgan has over 30 years of
experience in providing accounting, auditing and consulting services to California cities. Also, the on-
site Manager for all field work will be Ms. Daphnie Fuertez, the Audit Manager on the City audit.
Our firm accepts all conditions and requirements contained in the RFP. Also, I am authorized to
obligate our firm to perform the commitments contained in this proposal.
Very truly yours,
Diehl, Evans & Company,LLP
" .
Byl.Ar~ ~. YV\ U"\ d-
William S. Morgan, CPA .
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EXECUTIVE SUMMARY
As we understand matters, in the early 19908, the City formed Community Facilities District 91-2
(CFD 91-2) to facilitate certain improvements within the district. Approximately $ II million in CFD
9I~2 bonds were issued. Subsequent to the formation ofCFD 91-2, Community Facilities District 98-1 U
(CFD 98-1) was formed, which overlaid CFD 91-2. Improvements in CFD 98-1 were made pursuant to
an agreement with Abbacy Holding Company (Abbacy), under which Abbacy agreed to cover certain
obligations of CFD 98- 1.
In 2003, bonds were issued pursuant to the Marks-Roos Bond Pooling Act (the Marks-Roos Bonds),
whereby approximately $ 17 million of proceeds from the Marks-Roos Bonds were allocated to CFD
98-1. A portion ofthe $ 17 million was used to retire the CFD 91-2 bonds, with the balance used for
other purposes within CFD 98- 1. .
It is our understanding that City officials are concerned about the propriety of certain transactions
related to the issuance of bonds for CFD 98- 1. More specifically, the following questions need to be
answered:
1. What were the authorized uses for bond proceeds on CFD 91-2? On what projects were the proceeds
of CFD 91-2 actually expended? Were any proceeds from the Marks-Roos Bonds used for projects
previously included in CFD 91-2?
2. What were the sources and authorized uses for the $ 17 million in proceeds from the Marks-Roos
. Bonds? Have the proceeds of the Marks-Roos Bonds been expended as authorized? Is there
adequate documentation (such as invoices, canceled checks, etc.) to support the expenditures made
on CFD 98-1?
3. Has Abbacy fulfilled its obligations to CFD 98-1 and/or to the City?
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The "Project Approach" set forth on the following page provides a proposed scope of work necessary
to answer the above questions.
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PROJECT APPROACH
This engagement will be an "agreed-upon procedures review" in accordance with the provisions of
AICP A Statement on Standards for Attestation Engagements No.1 0 (SSAE I 0). We will perform the
following, specified procedures at the request of City management:
1. We will review the Official Statements issued in connection with the bond offerings on CFD 91-2
and CFD 98-1. '
2. We will review the Offering Circular issued in connection with the 2003 Mark-Roos Bond Pool
offering.
3. We will review any agreements with Abbacy Holding Company, and any other documents or
correspondence necessary to gain and understanding of the obligations of the company to CFD 98-1
and/or the City.
4. We will analyze the sources and uses of funds on CFD 91-2. We will interview selected City
officials regarding the transactions of this assessment district.
5. We will trace the proceeds and 'expenditures 'ofCFD 98-1 to supporting documents. We will prepare
a summary of the uses of the bond proceeds (i.e., the amount used to cover the CFD 91-2 bonds and
other uses).
Caveat: This analysis will not include any assessment of the propriety of the amounts charged by
contractors, vendors or suppliers. For example, we will not assess if the amount charged per foot or
per mile' for curb and gutter work is reasonable or in line with industry standards. Such an evaluation
would need to made by an engineer or other specialist as part of a separate engagement.
6. We will review supporting documents related to Abbacy's obligations, including:
a. The payment of $ 2.6 million under terms of the agreement.
b. All major dollar reimbursements, plus a sample of smaller-dollar reimbursements, 'for <issessment
district costs paid by Abbacy.
c. Payment of property tax assessments prior to reimbursement by the City.
7. We will perform other procedures as requested by City management and/or City Council members.
8. We will issue a report setting forth our procedures and the findings and conclusions that resulted
from our review.
Assuming that all documents are provided to our firm in a timely manner, and assuming that City
personnel are available to work with our staff professionals on a timely basis, we make a commitment
to complete the work and issue a report on this engagement within 60 days of the date City
management authorizes the work to start.
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FIRM QUALIFICATIONS
The qualifications of DieW, Evans & Company, LLP are set forth as an attachment to the Audit
Agreement between the City and our firm.
. TEAM QUALIFICATIONS
Mr. Nitin Patel, CPA, will serve as the Engagement Partner on this review. He will be available for
consultation during the engagement, and will perfonil a "quality review" on the final report issued to
the City. Mr. Patel's resume is attached to this proposal.
Mr. William S. Morgan, CPA, will be the Project Director. Mr. Morgan will plan, supervise and
review all work related to this engagement. He will have one entrance conference with City
management and, if necessary, an exit conference with City management or City Council members. He
will review the final report. Mr. Morgan's resume is attached to this proposal.
Ms. Daphnie Fuertez will act as the on-site Project Manager. She will perform much of the analysis
work on this engagement, or supervise a professional staff member for a portion of the work. A resume
for Ms. Fuertez was included with our audit proposal.
REFERENCES
Alist of references was included with our audit proposal.
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Position
(\ Education
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Licensinl!:
ProCessional
Orl!:auizations
Ranl!:e oC
Experience
Continuinl!:
ProCessional
Education
NITIN P. PATEL. CPA
Engagement/Concurring Review Partner
University of California at Irvine
Bachelor of Arts in Economics
California. State University at Long Beach
Masters of Accounting Program
Certified Public Accountant in California since 1988
American Institute of Certified Public Accountants
California Society of Certified Public Accountants
California Society of Municipal Finance Officers (CSMFO)
- Associate Member
CSMFO Professional and Technical Standards Review Committee
- Report Reviewer for Award Program
Governmental Accounting and Auditing Committee of Orange
County - Committee Chairman (2001-2002)
California Accounting and Auditing Committee Member
Has been with Diehl, Evans & Company, LLP since 1986 with emphasis in
governmental accounting and financial reporting.
Responsible for firin's in-house governmental accounting and auditing training
programs.
Experience includes supervision of over one hundred audits of governmental
agencies including cities, redevelopment agencies, non-profit corporations, joint
powers authorities and 5,pecial districts.
Other experience includes providing consulting services for governmental
agencies including special internal control reviews, cost allocation plans, cable
television rate reviews, reviews of City Treasurer operations and transient
occupancy tax reviews of city hotels/motels.
For the period of January.l, 2001 through December 31, 2004:
Total Government Hours: 1OI.00
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WILLIAM S.MORGAN. CPA
EXAMPLES OF CONSULTING PROJECTS PERFORMED OR SUPERVISED
. Expert Witness Services
Totten and Brooks vs. Ventura County
Phillip S. Molina vs. City of Oxnard
County of Santa Cruz vs. Charter Communications
City of San Marcos vs. County of San Diego
City of San Francisco vs. Viacom Cable
City of Garden Grove vs. Adult Bookstores
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. Mediation of Lawsuit
Acted as "Mediator" in Lawsuit Between
City of Lake Forest and County of Orange.
City of Burbank Police Department!
Los Angeles District Attorney's Office
City of Phoenix, AZ Police Department
City of National City
City ofYorba Linda/Orange County District
Attorney's Office
. Fraud Investigations
. Reviews of City Treasurer
Operations
County of San Bernardino Cash Management System
City of Carson Housing Rehabilitation Program
Coachella Valley Association of Governments (CVAG)
Street Sweeping Operation
Burbank Redevelopment Agency
City of Huntington Beach
. City of Mission Viejo
City of Palm Desert
. Performance and Operational
Studies
. Review of City's Business
License Operation
City of El Segundo
City of Indio
City of Irvine (Waste Management and eight other
commercial haulers)
City of Thousand Oaks (GI Industries and Newbury
Disposal)
City of Garden Grove (Taormina Industries)
City of Signal Hill (BDCO Disposal)
City of Lakewood (B-Z Disposal Services)
. Cities of Dana Point, San Juan Capistrano
and.San Clemente (Solag Disposal, now CR&R)
Regional Waste Management Authority,
Yuba City (Yuba-Surter Disposal, Inc.)
Over 60 California Cities and Counties Under
Contract Since 1991
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.. City-Wide Cost Allocation Plan
. Reviews of Solid Waste
Contractors! Assistance with
Trash Rate Negotiations
. Cl\ble Television and Broadband .
Consulting Services
. Transient Occupancy Tax (TOT).
Reviews on City HotelsIMotels
City of Burbank
City of El SegUndo
City of Irvine
City of Manhattan Beach
City of Mission Viejo
City of Palm Desert
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CITY OF LAKE ELSINORE
REQUEST FOR PROPOSAL
for
AGREED UPON PROCEDURES RELATED TO
. CERTAIN BOND ISSUES
. City of Lake Elsinore
130 S. Main Street, Lake Elsinore, California 92530
Date ofIssuaIlce: Monday, October 4, 2005
Deadline for Submission: Thursday, October 27, 2005
ACENDA ITEM NO. ( 0
PACE ~ LLoF.-3.L
REQUEST FOR PROPOSAL
CITY OF LAKE ELSINORE
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AGREED UPON PROCEDURES RELATED TO
CERTAIN BOND ISSUES
TABLE OF CONTENTS
PAGE
I. INTRODUCTION..................,.............................................................................. 1
II. OBJECTIVES ................................. ..... ............................ ................................ ..... 1
IV. SCOPE OF WORK...............................................................................:............... 1
V. SUBMISSION REQUIREMENTS ..................................................................... 1
1. Time and Place for Submission of Proposals ..................................................1
2. Responsibility of Firm for Review and Knowledge of the RFPand Addenda
............................:..........................~...................................................................... 2
3. Format and Content of Proposals .................................................................... 2
A. Cover Letter .................................................................................................... 2
B. Executive Summary ........................................................................................3
C. Project Approach .......................... ... ............... ........... ............. ................... ..... 3
D. Firm Qualification .......................................................................................... 3
E. Team Qualifications... ...:..... ........................................ ....... .......... ........... ........ 3 U'
F. References ............. ...................... ............................... ........ ..... ......... ................ 3
G. Firm Fees .....................................................:.......................:............................4
VI. EVALUATION AND SELECTION ................................................................... 4
1. Firm Selection.... ................................... ......... ............... ........................................ 4
2. Evaluation. ......... ................. ...... ....... .... .... ...................... ...... ........ ... ...... .......... .... 4
3. Oral Interview ....................................................................................................5
4. Reference Check.......... ............... ...................................... ........ ................... ....... 5
5. Contract Negotiation ......................................................................................... 5
VII. SCHEDULE........................................................................................................... 5
1. Inquiries. ...... ... ..... .................. ... .... ....... ............ ...... ............. ................................ 5
2. Selection Schedule....................................................:............,............................ 6
3. Contract Award ........................................;.............................:.......................... 6
4. Severability of Services...................................................................................... 6
VIII. GENERAL CONDlTIONS.................................................................................. 6
1. Omissions in.RFP ............................. ...... ............................................. ............ ... 6
2. Addenda to RFP ...................................................................:............................. 6
3. Term ofProposaI................................................................:............................... 6
4. Reservations of Rights by the City ......................................,............................ 6
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City of Lake Elsinore
AGENDA ITEM NO. \ ()
PAGE d.S OF--3.L
REQUEST FOR PROPOSAL
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I.
INTRODUCTION
The City of Lake Elsinore is a gener!lllaw City that was incorporated on April 9,
1888. The population was 38,045 as of January 2005 and is estimated to.grow to 75,500
by 2025. The elected City Treasurer has requested that the City hire an audit firm to
audit certain bond issues and related agreements with developers. City Council has
approved moving forward with such an audit.
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II.
OBJECTIVES
, ' The City seeks a professional auditing firm to perform agreed upon procedures.
III. SCOPE OF WORK
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. The scope of services covers the following agreed upon procedures:
I. Determine compliance with certain terms of the Abbacy Holding
Company agreement.
a. Determine if Abbacy paid the $2.6 million required in the
agreement.
b. Determine if Abbacy's reimbursement was supported by adequate
supporting documentation and was made in accordance with the
agreement.
c. Determine if Abbacy Holding Company or affiliated companies
paid their property tax prior to the City reimbursing Abbacy.
2. Verify that the Sources and Uses in the official statements of the 2003
Series H bond issue were executed for their stated purpose.
3. Determine why the bonds for CFD 91-2 went up from $1I million to $17
million as part of the new overlay district CFD 98-1.
4. Other procedures as requested by the City Manager or the City Councilor
recommended by the firm.
IV. COMPLETION TIME
A draft report should be completed within 30-60 days from the City's
authorization to proceed, which assumes all necessary information to be provided by the
City is made available immediately.
V. SUBMISSION REQUIREMENTS
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1. Time and Place for Submission of Proposals .
Proposals must be received by 5:00 p.m. on Thursday, October 27,2005.
Proposals may be delivered in person or mailed to: -
ACENDA ITEM NO. \ 6
PACE~OF~
Pagel
. City of Lake Elsinore
REQUEST FOR PROPOSAL
City of Lake Elsinore
130 S. Main Street
Lake Elsinore, California 92530
Attention: Matt N. Pressey, Director of Administrative Services
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Firm shall submit one (1) originally signed proposal in a sealed envelope
or package clearly marked "Agreed upon Procedures Proposal for the City of Lake
Elsinore." Faxed and electronic documents will NOT be accepted.
Any proposals received after such date and time shall be rejected. Each
firm accepts all risks associated with misdelivery or with failure to deliver before such
date and time by any courier, mail or other delivery service.
2. Responsibility of Firm. for Review and Knowledge of the RFP and
Addenda
It shall be the responsibility of all firms to review all documents in the
RFP ahd any addenda thereto that are issued by the City. Each firm shall be responsible
for understanding all items and conditions contained in such documents and addenda. If
issued, addenda will be delivered to all parties who obtain copies of the RFP or who
request that their names and addresses be placed upon the mailing list with the City as
potential firms.
3. Format and Content of Proposals
Firms that are interested in responding to this RFP must submit the U
following information:
A. Cover Letter
A cover letter describing the following:
o The official names of the Firm, as well as any other names
under which the Firm does business.
o The address of the Firm's headquarters, and any local office of
the Firm that will participate in the contract.
o The Firm's Federal Tax Identification Number.
o The name, address, e-mail address, telephone and fax numbers
of the person(s) who will serve as the contact(s) with the City,
with authorization to make representations on behalf of and to
bind the Firm.
o Signature of the person authorized by your firm to obligate
your firm to perform the commitments contained in the
proposal.
ACENDA ITEM NO. , 0 ()
PACE..n-OF--1.D
City of Lake Elsinore
Page 2
REOUESTFORPROPOSAL
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o An acceptance of all conditions and requirements contained in
this RFP. Any rejection of or objection to the conditions and
requirements and requirements must be expressly set forth in
the cover letter. -
B.
Executive Summary _
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Provide a brief synopsis of the highlights of the Proposal and the
overall benefits of the Proposal to the City. This synopsis should not exceed I page in
length and should be easily understandable.
C. Project Approach
Describe the services and activities that your firm proposes to
provide to the City. Include the following information:
o The approach to be taken by the Firm in order to fulfill the
expectations of the City. Include an explanation of what the
Firm envisions as its role, a milestone schedule, and a budget.
o - Discuss the level of commitment of project principles and key
technical staff for projectmanagement.
D. Firm Qualificatiou
Provide information on background and qualifications of all firms
that will participate in the contract, including a description of your firm, as well as how
any joint venture or association would be structured.
E. Team Qualifications
Provide a list identifying the following:
o Each key person on the project team.
o The project manager. _
o The role each will play in the project.
o Provide a description of the experience and qualifications of
the project team members in the form of a resume for each
individual.
F. References
-Provide three (3) references for all participating firms, including
the name, address, telephone number, and e-mail address of relevant clients (preferably
other public agencies).
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AGENDA ITEM NO. I Q
PAGE all OF~
City of Lake Elsinore
Page 3
REOUESTFORPROPOSAL
G.
Firm Fees
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The City intends to award this contract to the firm that it considers
will provide the best overall program services in a cost-effective manner. The City
reserves the right to accept other than the lowest priced proposal and to reject any
proposals that are not responsive to this request.
The fee proposal shall indicate:
o Budget
o A schedule of the hourly billing rates
The. fee proposal requires an accompanying transmittal letter
signed by a person authorized to bind the proposal.
VI. EVALUATION AND SELECTION
1. Firm Selection
A selection committee will evaluate the proposals. The committee will
select the proposal which best fulfills the City's requirements. City staff and the City
Attorney will work with the Firm to reach agreement on the terms and conditions of a
consulting contract, subject to final approval by the City Council.
2.
Evaluation
Selection will be based on the following baSis:
o Compliance with submission requirements.
o Technical approach that demonstrates ability to perform the tasks.
o Quality of suggested process.
o Organizational plan that demonstrates optimal utilization of combined
resources of the Firm and City st~ff.
o The proposed project manager's experience in the related fields. The
. project manager's prior experience in leading implementation of
. similar projects.
o Individual team members' professional qualifications, education, and
training.
o The role team members will play in connection with proposal.
o Recently completed projects.
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o Adherence to schedules, deliverables and budgets of these completed
projects.
AGENDA ITEM NO. l~. .)..
PAGE d. OCOF~
Page 4
City of Lake Elsinore.
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REOUEST FOR PROPOSAL
o Costs.
o Proposed schedule to timely. complete the applicable Tasks.
3. Oral Interview
The City does not plan to do-oral interviews.
4. Reference Check
City staff- will perform reference checks on the Firms to ensure that the
potential Firms possess the necessary resources and will be able to provide a high level of
service.
5. Contract Negotiation
The selected Firm shall cooperate with the City in good faith to promptly
negotiate, execute, and deliver the appropriate contract for service. The City shall draft
the contract and the Firm shall be required to attend a contract negotiation conference(s), -
as necessary, to discuss any and all possible revisions to the technical terms and
conditions, pricing, and any part of the Proposal, as well as any additional provisions that
may be added to the contract. .
VII. SCHEDULE
1.
Inquiries
Questions regarding the RFP can be. e-mailed to mpressey@lake-
elsinore.org or mailed to the City of-Lake Elsinore, 130 S. MainStreet, Lake Elsinore,
California ?2530; Attention: Matt N. Pressey, Director of Administrative Services.
The City will keep a record of all parties who request and receive copies
of the RFP. Any requests for information or clarification concerning the RFP must be
submitted in writing. Any questions requiring substantive replies will be issued as
written addenda to all parties who have requested a copy of the RFP directly from the
City. Substantive questions and issues raised may be answered verbally and/or answered
via addendum that will be distributed to all parties that received a copy ofthe RFP.
AGENDA ITEM NO. t 0
PAGE 30 OF-3..L-
City of Lake Elsinore
_ Page 5
REQUEST FOR PROPOSAL
2.
Selection Schedule
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Milestone . Anticipated Date
Issue RFP October 4, 2005
Proposals due October 27,2005
Selection of Firm November 8, 2005
3. . Contract Award
The selection of any proposal shall not imply acceptance by the City of all
terms of the Proposal, which may be subject to further negotiation and approvals before
the City may be legally bound thereby. If a satisfactory contract cannot be negotiated in
a reasonable time, the City, in its sole discretion, may terminate negotiations with the
selected Firm and begin contract negoti~tions with the next highest ranked Firm.
4. Severability of Services
It is anticipated that the City will award a contract to one firm.
GENERAL CONDITIONS
1. Omissions in RFP
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Firms are responsible for reviewing all portions of this RFP. Firms are to
promptly notify the City, in writing, if the Firm discovers any ambiguity, discrepancy,
omission, or other error in this RFP. Any such notification should be directed to the City
promptly after discovery. Modifications and clarifications w~ll be made by addenda as
provided below.
2. Addenda to RFP
The City may modify the RFP, prior to the proposal due date, by issuing
written addenda. Addenda will be e-mailed to all firms that provide an e-mail address.
The City will make reasonable efforts to notify Firms in a timely manner of modifications
to the RFP. Notwithstanding this provision, the Firm shall be responsible for ensuring
that its proposal reflects any and all addenda issued by the City prior to the proposal due
date regardless of when the proposal is submitted.
3. Term of Proposal
Submission of a proposal signifies that the proposed services and prices
are valid from the proposal due date through contract negotiation.
4. Reservations of Rights by tbe City
The issuance of this RFP does not constitute an agreement by the City that
any contract will actually be entered into by the City.
City of Lake Elsinore
AGENDA ITEM NO. \ 0 U
PAGE 3 LOF-3L--
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TO:
FROM:
DATE:
SUBJECT:
APPLICANT:
REOUEST
CITY OF LAKE ELSINORE
REPORT TO CITY COUNCIL
MAYOR AND CITY COUNCIL
ROBERT A. BRADY, CITY MANAGER
NOVEMBER 8, 2005
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
ERIK MARCUSSEN, GROUND FLOOR DESIGN, 18025
SKY PARK CIRCLE, STE. K, IRVINE, CA 92614
The applicant requests a continuance of the proposed project from the November 1,
2005 Planning Commission Meeting and November 8, 2005 City Council Meeting to
the December 6,2005 Planning Commission and December 13,2005 City Council
meeting(s).
BACKGROUND
Although staff has endured to bring this application forward, the applicant has
requested the project be continued to fully analyze the proposed conditions of
approval. Therefore, with the consent ofthe applicant, staff is requesting that this item
be continued.
PREPARED BY: KIRT A. COURY, ASSOCIATE PLANNER
APPROVED FOR
AGENDA BY:
C:\Documents and Settings\Rpreisendanz\Local Settin \Temporary Internet Files\OLK5\CC Staff
Report.continuance.doc
Agenda liem No. J, l
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CITY OF LAKE ELSINORE
REPORT TO CITY COUNCIL
TO:
MA YORAND CITY COUNCIL
FROM:
ROBERT A. BRADY, CITY MANAGER
DATE:
NOVEMBER 8, 2005
SUBJECT:
TENTATIVE TRACT MAP NO. 31593
APPLICANT:
SOUTHSlIlORE PROPERTIES, LLC, 6600 W.
.'CHARLESTON BOULEVARD, SUITE NO. 124,
LAS VEGAS NV 89146
REQUEST
The applicant requests approval of:
. Findings of Consistency with the Multiple Species Habitat Conservation
Plan (MSHCP)
· Mitigated Negative Declaration No. 2005-08
. Tentative Tract Map No. 31593
BACKGROUND
The proposed project was presented to the Planning Commission on October 18,2005.
The Planning Commission recommended approval of the project and adopted
Resolution No. 2005-122 recommending to the City Council adoption of MSHCP
Consistency Findings; Resolution No. 2005-123 recommending to the City Council
adoption of Mitigated Negative Declaration No. 2005-08; Resolution No. 2005-124
recommending to the City Council approval of Tentative Tract Map No. 31593 (PC
Minutes, Staff Report, Conditions of Approval, Resolution, and Exhibits attached).
The environmental review period for the proposed Mitigated Negative Declaration,
was considered from September I, 2005 to October 1, 2005. Staff received three
letters from various governmental agencies. . In response, a final Mitigated Negative
Declaration has been prepared in accordance with the California Environmental
P:\TTM 31 593.Southshore\CC StaffReport:doc
Agenda Item No. 22-
Page I of' l.Q5
REPORT TO THE CITY COUNCIL
NOVEMBER 8, 2005
Page 2 00
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Quality Act (CEQA). All impacts resulting from the Proposed Project can be
mitigated to a level of "less than significant."
DISCUSSION
Items of discussion at the Planning Commission Hearing were related to the site
design, project improvements and various environmental issues (i.e. traffic, circulation,
water, drainage, grading, dust control, etc.). The Commission expressed satisfaction
with the design and layout of the proposed project. It was the majority consensus of
the Planning Commission to accept staff s recommendation of approval with revisions
to Condition of Approval No.9. (See attached City Council Conditions of Approval).
RECOMMENDATION
The Planning Commission recommends that the City Council approve the following
applications based on the Findings, Conditions of Approval and Exhibits.
I. Resolution No.2005-~, adopting Findings of Consistency with the Multiple U
Species Habitat Conservation Plan (MSHCP)
2. Resolution No. 2005-_, adopting Mitigated Negative Declaration No. 2005-08.
3. Resolution No. 2005-_, adopting Tentative Tract Map No.3 I 593.
PREPARED BY:KIRT A. COURY, ASSOCIATE PLANNER
APPROVED FOR
AGENDA BY:
A TT ACHMENTS
I. Vicinity Map.
2. Conceptual Site Plan.
3. City Council Resolution No. 2005-_,' adopting Findings of Consistency with
the Multiple Species Habitat Conservation Plan (MSHCP). .
4. City Council Resolution No. 2005-~, adopting Mitigated Negative Declaration
No. 2005-08.
5. City Council Resolution No. 2005"_, adopting Tentative Tract Map No.3 I 593. U
P:\TTM 31593.Southshore\CC StaffReport.doc
Agenda Item No. 2~. .
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REPORT TO THE CITY COUNCIL
NOVEMBER 8, 2005
Page 3 of3
6. City Council Conditions of Approval.
7. Response to Comments for Mitigated Negative Declaration No. 2005-08
8. Planning Cominission Minutes, Staff Report, Resolutions, Conditions of
Approval, and Exhibits from the October 18, 2005 meeting.
P:\TTM 3] 593.Southshore\CC StaffReport.doc
Agenda Item No. ~
Page 3 of 1lt)
336
lAKE
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ELSINORE
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PROJECT LOCATION MAP
AGENDA ITEM NO. ') '2- . .
PACE 4 OF N9\ U
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RESOLUTION NO. 2005-_
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF LAKE ELSINORE, CALIFORNIA, ADOPTING
FINDINGS OF CONSISTENCY WITH THE MULTI-
SPECIES HABITAT CONSERVATION PLAN (MSHCP)
FOR THE PROJECT IDENTIFIED AS TENTATIVE
TRACT MAP NO. 31593
WHEREAS, SouthShore Properties, LLC, has submitl!edapplication(s) for Mitigated
Negative Declaration No. 2005-08, and Tentative Tract Map No. 31593; and
WHEREAS, Mitigated 'Negative Declaration No. 2005-08, and Tentative Tract Map No.
31593 together comprise the "project" as defined by Section 21065 of the California
Enviromnental Quality Act (CEQA), California Public Resources Code ~ 21000 et seq.,'which is
defined as an activity whfchmay cause either a direct physical change in the enviromnent, or a
reasonably foreseeable' indirect physical change in the enviromnent and which includes the
issuance to a person of a lease, permit, license, certificate, or other 'entitlement for use by one or
more public agencies; and
WHEREAS, a Mitigated Negative Declaration for the subject project has been prepared
to evaluate enviromnental impacts resulting with the project; and '
("'\ WHEREAS, public notice of said project 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 November 8, 2005.
SECTION 1. The City Council has considered the proposed Mitigated Negative
Declaration No, 2005-08, and Tentative Tract Map No. 31593. The City Council finds and
determines .that the project identified as Tentative Tract Map No. 31593 is consistent with all of
the required procedures, policies, guidelines and provisions of the' MSHCP based on ,the
following findings:
MSHCP CONSISTENCY FINDINGS
1. The proposed project is a project under the City's MSHCP Resolution that must make an
MSHCP Consistency finding before approval.
Pursuant to the City's MSHCP Resolution, because the proposed project requires a number
of discretionary approvals from the City and is subject to CEQA review, it must be reviewed
, for MSHCP consistency, which entails for the proposed project determining whether it is
subject to the City's LEAP process, consistent with the Protection of SpeciesAssociated with
Riparian/Riverine Areas and Vernal Pool Guidelines (MSHCP, f6,1.2), Guidelines
Pertaining to Urban/Wildland Inteiface (MSHCP, f 6,1.4), Additional Survey Needs and
Procedures (MSHCP, S 6.3.2), Urban/Wildlands Inteiface Guidelines (MSHCP, J 6.3.2),
Vegetation Mapping (MSHCP, f 6.3.1) requirements, Fuels Management Guidelines
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AGENDA ITEM NO. r") Y2' ~_
PACE!) oc t6
CITY COUNCIL RESOLUTION
Page 2 of 4
TTM 31593 FINDINGS OF CONSISTENCY MSHCP
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(MSHCP, S 6,4), and payment of the MSHCP Local Development Mitigation Fee (MSHCP
Ordinance, S 4),
2. The proposed project is subject to the Joint Project Review process. .
According to the Multi-Species Habitat Conservation Plan (MSHCP), the footprint of the
project site is located within the Elsinore Area Plan. This Area Plan, the County's RCIP
Website (see httv://www.rciv.orf!/mavs.htm). and the (MSHCP) Conservation Summary
Report Generator Sheet for the area show that the proposed project is located within Subunit
5, Proposed Core 1 and comprises a portion of Cell Groups A', B' and Z' of the Elsinore
Area Plan and is subject to the City's LEAP process. The proposed project is located within
Cells 4276 and 4367 of the MSHCP. Conservation within the Cell Groups will focus on
chaparral, coastal sage scrub, riparian scrUb and woodland and forest habitat. As a result,
the proposed project ha~ been subject to the Joint Project Review process. '
3. The proposed project is consistent with the RiparianiRiverine Areas and VemalPools
Guidelines.
No riparian, riverine, vernal pool/fairy shrimp habitat i:md other aquatic resources were
identified on the proposed project site. The Riverside fairy shrimp is not expected to occur
on the proposed Project site due to lack of suitable habitat. As a result, no further MSHCP ()
analysis or conservation measures are required. The proposed project is therefore
consistent with the Riparian/Riverine Arf;as and Vernal Pools Guidelines.
4. The proposed project is consistent with the' Protection of Narrow Endemic Plant Species
. Guidelines. .
The project site does fall within the Narrow Endemic Plant Species Survey Areas. Therefore,
a habitat assessment was required for Narrow Endemic Plant Species. The assessment was
prepared by Michael Couffer, a consulting ecologist, in October 2003 for Bon Terra
Consulting. The proposed project has been determined to be consistent with the Protection
of Narrow Endemic Plant Species Guidelines.
5. The proposed project is consistent with the Additional Survey Needs'and Procedures.
The project site falls within the Burrowing Owl Survey Area. A burrowing owl survey was
conducted by Helix Environmental Planning, Inc. in late January 2004, for the winter
portion, and late April early May 2004 for the nesting portion of the survey. No burrowing
owls were detected during either survey. This survey was conducted in accordance with the
California Department of Fisk and Game (CDFG 1995) fieldprotocol. Prior to issuance of
a grading permit, the applicant shall conduct a burrowing owl presence/absence survey. If
no burrowing owls are found and other biological mitigation measures have been satisfied,
the proposed Project may proceed. However, if the species is found onsite, the applicant
shall develop and implement a burrowing owl mitigationplan for protection of the species in
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TTM 31593 FINDINGS OF CONSISTENCY MSHCP
compliance with CDFG Protocol. The project is therefore consistent with the Additional
Survey Needs Requirements.
6. The proposed project is consistent with the UrbanlWildlands Interface Guidelines.
Measures have been incorporated into the proposed project so that there will be no project-
related drainage, toxics, lighting, noise, invasives, barriers, and grading/land development
impacts to the Conservation Area. The proposed project is therefore consistent with the
Urban/Wildlands lnteiface Guidelines.
7. The proposed project is consistent with the Vegetation Mapping requirements.
The vegetation of the entire project site has been mapped. This mapping is sufficient under
the MSHCP and is consistent with the MSHCP.
8. The proposed project is consistent with the FlJels Management Guidelines.
The proposed project will be designed to include landscape buffers near the proposed
MSHCP Conservation Area that will in essence act as Fuel Modification Zones. Within
these areas there will be fire-resistant, non-invasive plants. Accordingly, with these
measures, the proposed project is therefore consistent with the Fuels Management
Guidelines,
9. The proposed project will be conditioned to pay the City's MSHCP Local Development
Mitigation Fee.
As a condition of approval, the project will be required to pay the City's MSHCP Local
Development Mitigation Fee at the time of issuance of building permits.
10. The proposed project overall is consistent with the MSHCP.
The proposed project complies and is consistent with all of the required procedures, policies,
and guidelines of the City's MSHCP Resolution and the MSHCP. The applicant has made
revisions to the project or has agreed to specific conditions, which would avoid the effects or
mitigate .the effects of the project to a point where no significant 'effects would occur.
PURSUANT TO THE ABOVE FINDINGS, 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 8th day of November 2005, by the
following vote:
AYES:
COUNCILMEMBERS:
NOES:
COUNCILMEMBERS:
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TTM 31593 FINDINGS OF CONSISTENCY MSHCP
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)
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RESOLUTION NO. 2005-
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF LAKE ELSINORE, CALIFORNIA, ADOPTING
MITIGATED NEGATIVE DECLARATION NO. 2005-08
FOR THE PROJECT IDENTIFIED AS TENTATIVE
TRACT MAP NO. 31593
WHEREAS, SouthShore Properties, LLC, has submitted a request to adopt Mitigated
Negative Declaration No. 2005-08 for the project identified as Tentative Tract Map No. 31593;
and
WHEREAS, Mitigated Negative Declaration No. 2005-08 has been prepared to evaluate
environmental impacts resulting with the project; and
WHEREAS, public notice of said project 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 November I, 2005.
SECTION 1. The City Council has considered the proposed Mitigated Negative
Declaration No. 2005-08. The City Council finds and determines that the project identified as
Tentative Tract Map No. 31593 is consistent with all of the required procedures, policies,
guidelines and provisions of the California Environmental Quality Act (CEQA) based on the
following findings:
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FINDINGS-MITIGATED NEGATIVE DECLARATION
1. Revisions in the project plans or proposals made by or agreed to by the.applicantbefore a
proposed mitigated negative declaration and initial study are released for public review
would avoid the effects or mitigate the effects to a point where clearly no significant effects
would occur; and
The applicant has made revisions to the project or has agreed to specific conditions which
would avoid the effects or mitigate the effects of the project to a point where no significant
effects would occur.
2. There is no substantial evidence, in the light of the whole record before the agency; that the
project as revised may have significant effect on the environment.
Pursuant to the evidence received in the light of the whole record presented to staff the
project will not have a significant effect on the environment considering the applicable
Conditions of Approval cmd Mitigation Monitoring Program.
3. Mitigation measures have been required to ensure all potentially significant impacts are
reduced to levels of insignificance.
Mitigation measures have been required which will reduce significant environmental impacts
to the level of insignificance. .
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AGEN~:C~~O' o2~
. CITY COUNCIL RESOLUTION
Page 2 of2 .
MITIGATED NEGATIVE DECLARATION NO. 200S-08
PURSUANT TO THE ABOVE FINDINGS, IT IS RESOLVED by the City Council
ofthe City of Lake Elsinore, California, that Mitigated Negative Declaration No. 2005-0S hereof
be adopted.
PASSED, APPROVED AND ADOPTED this Sth day of November 2005, 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 ZeidLeibold, City Attorney
City of Lake Elsinore
(SEAL)
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RESOLUTION NO. 2005-_
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF LAKE ELSINORE, CALIFORNIA APPROVING
TENTATIVE TRACT MAP NO. 31957
WHEREAS, SouthShore Properties, LLC, has initiated proceedings to approve Tentative
Tract Map No. 31593; and
WHEREAS, the Planning Commission of the City of Lake Elsinore at a regular meeting
. held on October 18, 2005 made its report upon the desirability of the proposed project and made
its recommendations in favor of the project by adopting Planning Commission Resolution No.
2005-124 recommending to the City Council approval of Tentative Tract Map No. 31593; 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 November 8, 2005.
,
NOW THEREFORE, the City Council of the City of Lake Elsinore DOES HEREBY
RESOLVE as follows:
SECTioN 1. The City Council has c~nsidered the proposed project prior to making a
decision to approve Tentative Tract Map No. 31593. The City Council finds and determines that
Mitigated Negative Declaration No. 2005-08 is adequate and prepared in accordance with the
requirements of the California Environmental Quality Act (CEQA) which analyzes
environmental effects of the Tentative Tract Map, based upon the following. findings and
determinations:
SECTION 2. That in accordance with State Planning and Zoning law and the City of
Lake Elsinore, the following findings for the approval of Tentative Tract Map No. 31593 have
been made as follows: .
1. The proposed subdivision, together with the provisions for the design and improvement, are
consistent with the General Plan; Zoning' Code; Title 16 of the Municipal Code relating to
Subdivisions; and the State Subdivision Map Act.
The project has been reviewed by the City and the appropriate affected Agencies and been
determined to be consistent with the designated land use planning area, development and
design standards, and all other appropriate requirements contained in the General Plan,
Zoning Code, City Municipal Code, and Subdivision Map Act.
2. The proposed subdivision is compatible with the objectives, policies, general land uses and.
programs specified in the General Plan (Government Code Section 66473.5).
The project has been reviewed by the City and the appropriate affected Agencies and been
n determined to be consistent with the designated land use planning area, development and
U:\kcoury\TTM 3l593.Southshore\CC RESO TTM.doc
AGENDA ITEM NO.
PACE / I
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OF L tf&2.-
CITY COUNCIL RESOLUTION
Page 2 of 3
TENTATIVE TRACT MAP NO. 31593
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design standards, and all other appropriate requirements contained in the General Plan,
Zoning Code, CityMunicipal Code, and Subdivision Map Act.
3. The effects this proposed subdivision is likely to have upon the housing needs of the region,
the public service requirements of its residents, and the available fiscal and environmental
resources have been considered and balanced.
The project is consistent with the City's General Plan and Zoning Code, and will provide
housing opportunities consistent with the General- Plan land use designation. - In addition,
the project has been conditioned to provide necessary public services and facilities, will pay
all appropriate fees, and will not result in any adverse environmental impact. -
4. The.design of the subdivision provides to the greatest extent possible, for future passive or
natural heating or cooling opportunities in the subdivision (Government Code Section
66412.3).
The project will comply with all appropriate conservation requirements of the City and
Uniform Building Code and will not preclude future opportunities for passive natural heating
or cooling opportunities.
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PURSUANT TO THE ABOVE FINDINGS, IT IS RESOLVED by the City Council
of the City of Lake Elsinore, California approvlil of Tentative Tract Map No. 31593.
PASSED, APPROVED AND ADOPTED this 8th day of November 2005, by the
following vote:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
ABSTAIN: COUNCILMEMBERS:
Robert Magee, Mayor
City of Lake Elsinore
ATTEST:
Frederick Ray, City Clerk
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AGENDA ITEM NO. '?t"J
PACE / ~ OF.v:e_
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CITY COUNCIL RESOLUTION
Page 300
TENTATIVE TRACT MAP NO. 31593
APPROVED AS TO FORM: .
Barbara Zeid Leibold, City Attorney
City of Lake Elsinore
(SEAL)
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AGENDA /Tal NO. 22___
PACE J 3~oFIQl2;;
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GENERAL
1. The applicant shall defend (with counsel acceptable to the City), indemnify, and hold hannless 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. 31593, 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 TRACT MAP NO. 31593
2. Tentative Tract Map No. 31593 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. The Tentative Tract 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.
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4. Prior to fmal 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.
5. Prior to the recordation of the Final Map for Tract No. 31953 (the "Final Map"), the applicant shall
make an irrevocable offer for fee dedication for local park purposes to the City of Lake Elsinore for
the following descnbed property:
[Legal description to be provided by the applicant prior to Planning Commission Hearing]
(Hereinafter, the "Patk Site")
In exchange for:
[Assessor Parcel Number (APN) 363-020-011]
(Hereinafter, the "Agency Remnant Site")
The form of the property exchange shall be in the nature of a land transfer agreement between the
Redevelopment Agency, the City and Applicant in a form suitable to the City and as shall be
approved by the City Anomey. Said agreement shall provide: (~ the transfer of the Patk Site to the
Agency free and clear of money and all other encumbrances, liens, leases, fees, easements (except
. routine easements that do not materially impair the intended use of the land), assessments and
unpaid taxes except those meeting the reasonable approval of the City Manager; (i~ the transfer of
the Agency Remnant Site free and clear of money and all other encumbrances, liens, leases, fees,
easements (except routine easements that do not materially impair the intended use of the land),
assessments and unpaid taxes except those meeting the reasonable approval of the Applicant; (ill)
Grv O)lmcil
Approved November 8. 2005
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ACENDA ITEM NO. ~
PAcE 1 Lf OF. ..~._
--
CONDITIONS OF APPROVAL
Page 2 of 10
TENTATIVE TRACT MAP NO. 31593
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compliance with applicable laws; and (iv) such usual and customary pr:ovisions as are necessary to
accomplish the transfer. .
The transfer of fee title to the Pam. Site shall occur prior to or concurrent with the recordation of
the Final Map. City shall be responsible for complying with CEQA following submission of the
preliminary concept plan for the Pam. Site. ' , '.
6. Prior to the recordation. of the Final Map, the Applicant shall submit a preliminary concept plan of
the proposed recreation facilities and amenities on the Pam. Site to the Director of Community
Services for review and approval. Applicant shall also post a performance bond in the amount of
two-million dollars ($2,000,000.00) guaranteeing the construction of the park as. provided herein
which shall stay in place until the completion of the improvements to the Park Site.
7. Prior to the issuance of the first building permit, the Applicant shall submit to the Director of
Community Services, for review and approval, detailed pam. facilities plans , landscape plans,
irrigation plans and such other plans as may reasonably be required for purposes of constructing a
10 usable acres "turn-key" public pam..
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8. Priono the issuance offirst Certificate of Occupancy for Tract No. 31953, Applicant shall grade the
Pam. Site to provide a minimum of ten (10) usable and creditable acres and shall secure the Pam. Site
against erosion and shall stub out sewer, water, gas, electricity, telephone, storm drain, etc
connections to the property line.
9. Prior to issuance of the fiftieth (50th) Certificate of Occupancy, Applicant shall provide of adequate
sewer, water, gas, electricity, telephone, storm drain, within the Pam. Site as are necessaty to serve
the Pam. Site. In the ezmt pmnanent faGlities are not amibble, the appliamt shall proVide ten1fXJTary fat:iJities at
not rost tD the City (ArnendRd at PIMning Omnissim Meeting of Ocrolx:r 18, 2005).
10. Prior to the recordation of the Final Map, the Applicant shall obtain an easement for a public access
road directly connecting the proposed development and the Pam. Site (the "Pam. Easement"). The
City and Applicant anticipate that the Pam. Easement will connect the proposed development to the
Park Site near Parcel No.2 as set forth in Tract Map No. 32013.
11. Prior to the issuance of the first building permit for Tract No. 31953, Applicant shall submit a plan
and sectional views indicating the grade and width of the Park Site Access Road measured flow-line
to flow-line.
12. Prior to the issuance of the first Certificate of Occupancy for Tract No. 31953, Applicant shall
construct the Park Site Access Road.
13. Prior to the issuance of the fIrst Certificate of Occupancy for Tract No. 31953, Applicant shall
construct the Park Site improvements and amenities consistent with the preliminary plan such that
the Park Site is in a "turn-key" condition. City shall provide Applicant with all reasonable and
appropriateentty rights onto the Park Site for purposes of constructing the improvements as
n provided herein.
City Council
Approved November 8. 2005
AGENDA ITEM NO. ~
PACE J~ OF' .
CONDITIONS OF APPROVAL
Page 3 of 10
TENTATIVE TRACT MAP NO. 31593
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14. With respect to park fees paid or to be paid by Applicant, Applicant shall be entitled to a fee credit
(or fee reimbursement for park fees already paid) to the extent of Applicant's actual on-site
construction costs of the park improvements on the Park Site. Applicant shall also be entitled to
reimbursement for park fees actually paid under Tract 32013 or a fee credit if Applicant continues
ownership of Tract 32013. Accordingly, Applicant and City shall enter into a fee reimbursement
agreement reflecting such use of fees and providing, further, to the extent allowed by law and
subject to the discretion of the City Council, the use of community facilities district bond proceeds
for reimbursement of developer's cost incurred with respect to public capital improvements,
including the Park Site and the Park Site Access Road .
. 15. The applicant shall comply with all the mitigations contained and identified in the Mitigated
Negative Declaration No. 2005-08.
16. All lots shall comply with minimum standards contained in the LEMC.
'17. A precise survey with closures for boundaries and all lots shall be provided per the LEMC.
.18. The applicant shall comply with all conditions of the Riverside County Fire Department.
19. The applicant shall meet all requirements of Elsinore Valley Municipal Water District (EVMWD).
20. All future structural development associated with this map shall require separate Design Review U
approval.
21. 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.
22. 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. .
23. 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.
24. The applicant shall pay applicable fees and obtain proper clearance from the Lake Elsinore Unified
School District (LEUSD) prior to issuance of building permits.
25. The Multiple Species Habitat Conservation Fee (MSHal) will be due upon issuance of each
building permit.
26. The applicant shall pay all applicable fees including park fees.
27. The applicant shall meet all requirements of the providing electric utility company.
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City CAllillciJ
Approved November 8. 2005
ACENDA ITEM NO. ? '2
PACE /tP OF~
CONDITIONS OF APPROVAL
Page 4 of 10
n TENTATIVE TRACT MAP NO. 31593
28. The applicant shall meet all requirements of the providing gas utility company.
29. The applicant shall meet all requirements of the providing telephone utility company.
30. A bond is required guaranteeing the removal of all trailers used during construction.
,} 1. All signage shall be subject to Planning Division review and approval prior to installation.
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32. 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. .
33. Prior to issuance of a Building Permit, the applicant shall annex into the appropriate Landscaping
and Lighting Maintenance District(LLMD).
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34. Prior to issuance of a Building Permit, the applicant shall annex into the appropriate Community
Facilities District (CFD). .
ENGINEERING
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34. Construct Elsinore Hills Road at full width secondatyarterial,standard (70'/90) within project
boundaries by first certificate of occupancy.
35. Construct Elsinore Hills Road from the project's south boundaty to Camino Del Norte (proposed
CFD links H and G). Two full lanes and shoulders are the minimum requirement. At intersections,
additionally widening will be required for left turn lanes-all prior to first certificate of occupancy.
The roadway shall be designed to secondaty arterial standards.
36. Construct Camino Del Norte to two full lanes and shoulders (proposed CFD link F) prior to first
certificate of occupancy. The roadway shall be designed to Major Arterial standards (80~/100).
37. I~prove the intersection of Camino Del Norteand Main Street as determined by the City Engineer
prior to first certificate of occupancy. .
38. Install a traffic signal at Main Street and the northbound 1-15 ramps prior to the JOO'h certificate of
occupancy.
39. Construct Elsinore Hills Road to full width and connect to Tract 25478 prior to first certificate of
occupancy.
40. Join the proposed CFD when it is formalized.
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41. AIl 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.
City COlmcil
Approved November 8. 200S
AGENDA ITEM NO.~~
PAGE /7 _OF~
CONDITIONS OF APPROVAL
Page 50fl0
TENTATIVE TRACT MAP NO. 31593
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42. Pay all Capital Improvement and Plan Check fees (LEMC 16.34, Resolution 85-26).
43. 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 fmal map approval.
44. 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).
45; Street improvement plans and specifications shall be prepared by aCalif. 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).
46. Street and alley 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).
47. 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.
48. Applicant shall' obtain any necessaty Caltrans permits and meet all caItrans requirements.
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49. Desirable design grade for local streets should not exceed 9%.
. 50. Interior streets shall be designed with 9% as the desired grade and intersecting streets shall meet at a
'maximwn grade of 6 %
51. Pay all fees and meet requirements of encroachment permit issued by the Engineering Division for
construction of public works improvements (LEMC 12.08 arid Resolution 83-78).
52. All compaction repons, grade cenifications, monwnent cenifications (with tie notes delineated on 8
. Y.z" x 11" Mylar) shall be submitted to the Engineering Division before final inspection of public
works improvements will be scheduled and approved,
53. The applicant shall install permanent bench marks to Riverside County Standards and at a location
to be determined by City Engineer.
54. Applicant shall obtain all necessaty off-site easements for off-site grading from the adjacent propeny
owners prior to final map approval.
55. Arrangements for relocation of utility company facilities (power poles, vaults, etc.) out of the
roadway or alley shall be the responsibility of the propeny owner or his agent.
56. Provide fire protection facilities as required in writing by Riverside County Fire.
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CitY Council
Approved November 8, 2005
ACENDAI~ e 2.~._
PACE Of_~
CONDITIONS OF APPROVAL
Page 6 of 10
(""'\ TENTATIVE TRACT MAP NO. 31593
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57. Provide street . lighting and show lighting improvements as. part of street improvement plans as
required by the City Engineer.
58. Developer shall annex to the City's Street Lighting and landscaping Maintenance District.
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59. Developer shall install blue reflective pavement markers ill the street at all fire hydrant locations.
60. Applicant shall submit a traffic control plan showing all traffic control. devices for the tract to be
approved prior to fmal 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.
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61. 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.
62. All utilities except electrical over 12 kv shall be placed underground, as approved by the serving
utility.
63. 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 inspectign can be
conducted before grading begins.
64. Provide soils, geology and seismic report including street design recommendations. Provide fmal
soils report showing compliance with recomwendations.
65. An Alquis- Priolo study shall be performed on the site to identify any hidden earthquake faults
and!orliquefaction zones present on-site. .
66. 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.
67. Prior to commencement of grading operatio.ns, 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.
68. 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.
City Cmillcil
Approved November 8. 2005
AGEN::i'9' OFlda
CONDITIONS OF APPROVAL
Page 7 of 10
TENTATIVE TRACT MAP NO. 31593
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69. 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.
70. 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 fmal map stating: "Drainage
easements shall be kept free of buildings and obstructions".
71. 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., ' '
72. Submit Hydrology and Hydraulic Repons 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.
73. All drainage facilities in this tract shall be constructed to Riverside County Flood Control District
Standards.
74. 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.
75. 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. U
76. 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.
77. A drainage acceptance letter will be necessary from the downstream'property owners for out letting
the proposed stormwater run-off on private property.
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78. Developer shall be subject to all Master Planned Drainage fees and will receive credit for all Master
Planned Drainage facilities constructed.
79. Provide Tract Phasing Plan for the City Engineer's approval. Bond public improvements for each
Phase as approved by the City Engineer.
80. Up-slope maintenance along right-of-ways shall be maintained by the city's lighting and landscaping
maintenance assessment district or a homeowner's asso~iation.' .
81. Applicant shall comply with all NPDES requirements in effect; including the submittal of a Water
Quality Management Plan (WQMP) as required per the Santa Ana Regional Water Quality Control
Board. ,
82. Applicant will be required to install BMP's using the best available technology to mitigate any urban U'
pollutants from entering the watershed.
CitY Council
Approved November 8, 2005
ACiiNDA ITEM NO.~-
PAGE ~O OF~
CONDITIONS OF APPROVAL
Page 8ofl0
TENTATIVE TRACT MAP NO. 31593
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83. 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 pennits. The
applicant shall provide a SWPPP for post ~onstruction which describes BMP's that will be
rrnplemented. .
84. Applicant shall obtain approval from Santa Aria Region.:d 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 descnbes BMP's that will be rrnplemented for the development and including maintenance
responsibilities. . .
85. Education guidelines and Best Management Practices (BMP) shall be provided to residents of the
development in the use of herbicides, pesticides, fenilizers as well as other environmental awareness
education materials on good housekeeping practices that contnbute to protection of stonnwater
quality and met the goals of the BMP in Supplement <<A>> in the Riverside County NPDES Drainage
Area Management Plan.
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86. Applicant shall provide first blush BMP's using the best available technology that will reduce storm
water pollutants from parking areas and driveway aisles. .
87. Inte~section site distance shall meet the design criteria of the <::AL TRANS 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.
88. Intersecting streets on me inside ~dius of a curve will only be permitted when adequate sight
distance is verified by a registered civil engineer.
89. Local streets shall have sixty (60) ft. right-of -way with forty (40) ft. cuib-to-curb. Restricted local
streets (cul-de-sacs) shall have fifty (50) ft. right-of-way with thiny-six (36) ft. cum-to-cum and a
three (3) ft. utility easement on each side.
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90. Restricted local mterior double- loaded streets shall not have less than a 50 ft. Right-of-way with 36
ft. Curb-to-curb and a 3 ft. utility easement on each side of the street. Single- loaded local streets
shall not have less than a 45 ft. right-of-way with a 3 ft. utility easement and 36 ft. curb-to-curb
91. No residential lot shall front and access shall be restricted on collector streets and so noted on the
final map.
92. All parcels shall h~ve direct access to public right-of-way or be provided with a minimum 30-foot
ingress and ,egress easement to public right-of-way by separate instrument or through map
recordation. .
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City Cotmcil
Approved November 8. 2005
AGENDA ITEM NO. ~
PAGE ;;Z I OF
CONDITIONS OF APPROVAL
Page 9 of 10
TENTATIVE TRACT MAP NO. 31593
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93. Upon demonstration to the City that an adjacent property owner is unable to gain reasonable access
. to an adjacent parcel (considering available option along the entire boundary of the parcel), City shall
inform Developer and Developer agrees to take proactive measures to establish adequate access to
accommodate the adjacent parcel. Alternatively, the City may require that Developer offer an
easement for necessary ingress arid egress solely to address the needs of the adjacent parcel. The
conveyance of any easement pursuant to this condition shall not conflict with designated uses of
property including any and all conservation, open space or mitigation use of property.
94. The Developer shall provide access to adjacent properties needing access through this development
by public right-of-way or access easement based on a reasonable accessibility determination to the
satisfaction of the CitY.
95. If right-of-way is abandoned as part of this development, then adjacent property affected by the
abandonment's must still have access to public maintained right-of-way.
96. The fmal map shall show the abandonment of dedications of public right-of-way or easements by
appropriate certifications on the map. .
97. Developer to provide access to property owners and utility agencies to property to the west of the
tract including duringcoristruction. .
98. If necessary, applicant must submit a conditional letter of map revision (CLOMR) to FEMA prior to U
issuance of building permits. A letter of map revision(LOMR) must be approved from FEMA prior
to the 50th certificate of occupancy
99. Applicant shall record CC & R's for the tract prohibiting on-street storage of boats, motor homes,
trailer, 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.
100. 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
all lots subject to the approval of the director of CommunitY Development & the City Attorney. The
CC& R's shall enforce standards of building maintenance, participation in landscape maintenance,
prohibition of outside vehicle or material storage.
101. Applicant shall provide a homeowner's association with CC & R's for maintenance of the open
space.
102. 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.
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103. The large open space lots adjacent -to residential lots shall have areas designated as fuel modification
zones for a firebreak to be maintained by a homeowner's association.
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City Council
Approved November 8. 2005
AGalOA ItEM NO. Q~
PAGE .;2.. if-- OF _
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CONDITIONS OF APPROVAL
Page 10 of 10
TENTATIVE TRACT MAP NO. 31593
104. All open space and slopes except for public pallis and schools and flood control district facilities,
outsi?e the public right-of-way will be owned and maintained by either a home owner's association
or pnvate property owner.
105. Existing access easements over property must be addressed to the satisfaction of the easement
owners prior to fmal map approval.
106. 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.
107. 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.
108. Applicant shall pay all applicable development fees, including but not all inclusive: TUMF, MSHCP,
TIF and area drainage fees.
Citv Council
Approved November 8, 2005
AGENDA ITEM NO.. ~
PACE ~ ~ OF' .
,
Tentative Tract Map No. 31593
. Responses to Comments
Mitigated Negative Declaration No.
2005-08
AOENDA ITEM NO.
. OF
[\
n
r;.'
, Tentative Tract Map No. 3159~
Responses to Comments Received on Mitigated Negative Declaration No. 2005-08
The City of Lake Elsinore circulated Mitigated Negative Declaration No, 2005-08 (MND 2005-
08) for Tentative Tract Map No,'35913 (TIM 31593) for public review and comment for thirty
(30) days, from August 30,2005 through September 30,2005, Fifteen (15) copies of the Initial
Study, Notice of Availability (NOA), Notice of Intent to Adopt a Mitigated Negative Declaration
. (NOI), and Notice of Completion (NOC) were sent to The State of ,California, Governor's Office
of Planning and Research, State Clearinghouse and Planning Unit, as well as thirty (30) local
Agencies and Departments that were considered to have a potential interest in the proposed
TIM 31593,
Upon receipt of MND 2005-08, The State of Califomia, Governor's Office of Planning and
Research, State Clearinghouse and Planning Unit assigned the following State Clearinghouse
Number to MND 2005-08: SCH#20050901007, In their letter dated October 4, 2005, the State
of California, Governor's Office of Planning and Research, State Clearinghouse and Planning
Unit forwarded .comment letters to the City of Lake Elsinore from the following Agencies:
. Department of Toxic Control Substances;
. State of California - Health and Human Services Agency, Department of Health
Services; and
. California Regional Water Quality Control Board, Santa Ana Region.
No other comment letters were received by the City of Lake Elsinore for MND 2005-08 during or
after the designated 'review period. After review of the comment letters, it was determined by
the City of Lake Elsinore that none of the conditions required for Recirculation of a Negative
Declaration Prior to Adoption, contained in Section 1.5073.5 of the California Environmental
Quality Act (CEQA) Guidelines (Guidelines) were present; therefore, the response to comments
contained below, when accompanied by MND 2005-08 will serve to provide the Lake Elsinore
City Council information to make CEQA findings to adopt MND 2005-08 and approve TIM
31593, The Response numbers correspond to the comment letters contained within Attachment
A.
Department of Toxic Control Substances (Letter dated September 29. 2005)
Response #1: A Phase 1. Report, entitled: ''Phase 1 Environmental Site Assessment of An
Approximate 233-Acre Undeveloped Property South of Wasson Canyon Road, Lake Elsinore,
California 92532", dated October 27, 2003 was prepared for the project site by Lawson &
Associates Geotechnical Consulting, Inc. This Report was not utilized and referenced in MND
2008-05. According to Section 1.0.(Executive Summary & Recommendations) of the Report:
"Based upon the limited site reconnaissance, historical review, regulatory records review, and
other information detailed within this Report, the Assessment identified no. evidence of ASTM
Recognized Environmental Conditions (RECs) in connection with the subject property,
However, other non-REC issues were identified as discussed below. . With the possible
exception of the items below, no further investigation is recommended at this time.
Numerous piles of household trash, demolition debris, an abandoned car, etc. were noticed in
various areas, primarily on the northwest Wasson Canyon Valley floor area of the site. No
obvious evidence of significant hazardous material dumping was noted in the visible areas in
and around these trash piles or other areas of the property, However, when these trash piles
and other debris are removed, care should be taken to look for potential hazardous materials
1
AGENDA ITEM NO. "/ '2-
PACE '25 or 6~
beneath the piles, as well as in other areas of the property where visibility was limiter due to
dense vegetation." ' ,
According to Section 4.0 (Historical Review) of the Report:' "From the historical' information U
review, it is concluded that the subject property has been primarily undeveloped land since at
least 1949. A small dwelling or shed was noted on the USGS topographic map near the
northwest edge of the site, but this structure no longer remains. The site was graded in 1993
and some of the original topography at the north end was altered for road construction which
was never completed. Some of the nearby properties were developed with rural-type residential
dwellings prior to 1949, with increasing development in outlying areas since that time. No dry
cleaners, gasoline stations, landfills, military bases or major manufacturing businesses were
identified on the subject property."
According to Section 5.0 (Agency Records Review) of the Report: "In an effort to evaluate
, whether the subject property or nearby sites have reported UST s, hazardous waste generation,
or hazardous material releases, regulatory information from the federal, state and local agencies
listed below were reviewed." The search radius for each database was expanded by % mile
from ASTM standards due to the size of the subject property.
The following is a list of the databases consulted and the associated results.
Database
NPL
CERCLA
ERNS
RCRIS
TSD
, RCIS-CA
ASPIS/AWP/BEP'
'SWLF
LUSTs
Cortese Database
USTs
Toxic Pits Database
CHMIRS/SLlC
, HAZNET
RCEHD
# of Sites'
None
None
None
None
None
None
None
None
None
Five (5)
None
None
Three (3)
None
None
" , " # Listed @ Subiect Propertv
None
None
None
None
None
None
None
None
None
None
None
None
None
None
None
U
No additional significant impacts were identified by the letter from the Department of Toxic
Control Substances Control that were not addressed in the "Phase 1 Environmental Site
Assessment of An Approximate, 233-Acre Undeveloped Property South of Wasson Canyon
Road, Lake Elsinore, Califomia92532", October 27, 2003, Lawson & Associates Geotechnical
Consulting, Inc. The following Mitigation Measure will be included to ensure that all impacts to
Hazards and Hazardous Material Resources remain less than significant:
Hazards MM 3
When oh-site trash piles and other debris are removed, care should be taken to look for
potential hazardous materials beneath the piles, as well as in other areas of the property
where visibility was limiter due to dense vegetation.
zU
ACENDAITEMNO.~, '
PACE 'XP_OF-tOtl-
(\
This additional mitigation measure serves to clarify the existing mitigation measures for Hazards
and Hazardous Material Resources contained inMND 2005-08. After incorporation of this
mitigation measure, impacts will continue to remain less than significant and no additional
mitigation measures are required.
State of California - Health and Human Services Aaency. Department of Health Services
{Letter dated September 9. 2005!
Response # 2: According to Section XVI (Utilities and Service Systems) of MND 2005-08:
"Water treatment and service is provided to the proposed Project area by the Elsinore Valley
Municipal Water District (EVMWD). The addition of the Proposed Project will pose a less than
significant adverse impact regarding demand for existing water treatment facilities.. . EVMWD
has the capacity to provide water service to the proposed Project, without the need for
additional facilities. In addition, the location of the 1700 and 1800 water tank sites may be
relocated from adjacent land holdings to land owned by the applicant.
EVMWD will also provide wastewater treatment facilities for the proposed project. The
installation of any required off-site sewer lines will occur per City of Lake Elsinore and EVMWD
standards and Best Management Practices (BMPs) such that potential impacts will be below the
level of significance. The 1991 FEIR proposed and adopted mitigation measures that reduced
the impact to less than significant."
The comment contained in the letter will be included as a mitigation measure to ensure that
impacts to Utilities and Service Systems Resources will remain less than significant. This
additional mitigation measure serves to cl.arify the existing mitigation measures for Utilities and
Service Systems Resources contained in MND 2005-08.
(\
Utilities and Service Systems MM 1
If the City of Lake Elsinore plans to develop a new water supply well or make
modifications to the existing domestic water treatment system to serve the Tentative
Tract Map No. 31593 project site, an application to amend the water system permit must
be reviewed and approved by theCDHS Riverside District Office.
After incorporation of this mitigation measure, impacts will continue to remain less than
significant and no additional mitigation measures are required.
California Reaional Water Quality Control Board {Board!. Santa Ana Realon {Letter dated
September 28, 2005!
Response No.3: According to the applicant, impacts to Drainages 1 and 2 that were identified
on August 22, 2005 site visit have been previously legally filled though prior permits which were
issued in 1991 (Army Corps of Engineers (ACOE) Section 404 Permit #92-454 RS). The
additional impacts raised by the Board do not constitute a significant impact as stated.
A voidance of the significant resources on-site has been incorporated into project design through
no ACOE impacts to Wasson Creek and enhancement of the watershed though the creation of .
2-acres of southem willow scrub/woodland. Mitigation measures identified in Section IV of MND
2005-08 are adequate to mitigate impacts to Biological Resources. It should be noted that Bio
MM 2 reads as follows:
(\
3
AOENDA ITEM NO. 22-
PAOE23:...0F C~---
"Potential impacts to "Waters of the U. S." and CDFG jurisdiction will be reducecl to below the
level of significance through implementation of one or more of the following measures, which
individually or in combination will reduce potential impacts to below the level of significance:
u
1. Enhancement of avoided on-site drainages;
2. Restoration of on-site riparian habitat following construction within Wasson Creek;
3. On-site or off-site riparian habitat following' construction of water quality basin; or as
negotiated between the applicant, the Corps, RWQCB, and CDFG during Section
404/401/1602 permitting process."
Any difference of opinion between the applicant and the Regulatory Agencies will need to be
rectified prior to any ground disturbance and permit issuance.
Response No.4: Please reference Response No. ..1. Avoidance of the significant resources
on-site has been incorporated into project design through no ACOE impacts to Wasson Creek
and enhancement of the watershed though the creation of 2-acres of southem willow
scrub/woodland. Mitigation measures identified, in Section IV of MND2005cOB are adequate to
mitigate impacts to Biological Resources. Any difference of opinion between the applicant and
the Regulatory Agencies will need to be rectified prior to any ground disturbance and permit
issuance.
Response No.5: According to Section VIII (Hydrology and Water Quality): "The proposed
Project site is within the Santa Ana Watershed. Storm water from the proposed project will
discharge into Wasson Canyon via outlet structures located along the westem and southem
.boundaries. Wasson Canyon drains to Temescal Wash which is' tributary to the Santa Ana
River, Reach 3. This reach of the Santa Ana River is listed on the 2002 Draft 303(d) List as
being impaired for pathogens, and dairies are identified as being the primary pollutant source. U
The proposed Project site has never been in agricultural or dairy land use and thus will likely not
contribute substantially to the River's existing impairment. However, non-point source
discharges associated with urbanization have also been determined to contribute pathogens to
receiving waters.' The proposed Project will be subject to the State's General Permit for Storm
Water Discharges Associated with Construction Activities (General Permit) and will be required
to comply with conditions for new development that are identified through the City of Lake
Elsinore and Riverside County Flood Control District's implementation of their Municipal
Separate Stormwater Sewer System (MS4) permit. Construction and post-construction best
management practices (BMPs) shall be developed and implemented by the applicant according
to the Santa Ana Regional Water Quality Control Board's Water Quality Management Plan
(WQMP) for the region, as well as other special conditions that may be listed within the Project's
Section 401 Water Quality Certification in compliance with state and local regulations. These
measures will effectively reduce any adverse impacts to water quality to levels that are
considered to be less than significant." No additional impacts have been identified; therefore,
no additional mitigation measures are required.
Response No.6: Please reference Response No. .5. Maintenance of any Riverside County
Flood Control and Conservation District facilities will be in accordance with their maintenance
protocol and requirements.
Response No.7: Please reference prior Responses. Any difference of opinion between the
applicant and the Regulatory Agencies will need to be rectified prior to any ground. disturbance
and permit issuance.
4 U.
ACt=1"".' IT~ o:?~.
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Response No.8: Please reference prior Responses. Any difference of opinion between the
applicant and the Regulatory Agencies will need to be rectified prior to any ground disturbance
and permit issuance.
5
ACENDA ITEM NO. . ?i;
PACE . 2=1 OF. e3
u
ATTACHMENT A
COMMENT I,.ETTERS U
6U
ACENDA ITEM NO.-2Q.. .
PAGE,~ OF",,~
IV/~'/~VV:.J VV.:J'J "''''',11, <:l:l f4( 1141<:1
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-----
-;-
iltIUU4/Ul~
Department of Toxic Substances Control
~
.,
Nan C. Uoyd. Ph.D.
Agoncy Socr.tary
C.vePA
5796 Corporate Avenue
Cypress, California 90630
ArnOld Schwa=negger
Governor
September 29, 2005
RE~F..\VED'
OCT 0 3 2005
STATE CLEAAII'ICl HOUSE
C-\ tCl.V'
q.'OO'C>'5
Iy..;\-<'-
Mr. Kirt Coury
Associate Planner
City of Lake Elsinore
Planning Division
130 South Main Street
Lake Elsinore, California 92530
MITIGATED NEGATIVE DECLARATION NO.' 2005.08 FOR THE TENTATIVE TRACT
MAP NO. 31593. (SCH#200tj091007)
(\
Dear Mr. Coury:
The' Department of Toxic' Substances Control (DTSC) has received your submitted
Initial Study Checklist for a Mitigated NegCltive DeClaration (NO) for the abov?- '
mentioned project. The following project description is stated in your document:
','The proposed Project proposes to develop approximately 94 acres of land into
521 single-family residential lots with 'a minimum lot size of 6,000 square feet and
a maximum lot size of 10,000 square feet. The proposed Project will include
approximately 94 acres of open space consisting of open lots, landscaped slopes
arid a detention basin along the southeast boundary. adjacent to Elsinore Hills Drive.
The proppsed Project proposes to expand Elsinore Hills Drive to the n'otih and build
a road crossing'over Wasson Creek using a 3D-foot wide arch structure. An additional
11 acres will be conserved in the MultIple Species Habitat Conservation Plan." Based
on the review of t~e submitted ,document orsc has comments as follow;
The NO should iqentify the ,current 'or historic uses at the project site that may
have resulted in a release of hazardous wastes(substances,
The ND should Identify the known or potentialiycontamlnated sites within the
proposed Project area, For all identified sites, the ND should evaluate whether
conditions at the site may pose a threat to human health 'or the environment.
Following are the databases of some of the regulatory agencies:
. National Priorities List (NPL): A list maintained by the United States
Environmental Protection AgencY(U.S.EPA). '
1)
l
I
2)
(\
* . Prtnt.~ on Recycle<i Paper
AGENDA ITEM NO. ..~~
~I,,_O, (1;-.
IU/L(,/LUU:J V;:!.:J1l r"'^ ;:!:JIllr J'Il';:!
'2J VV:.JI v I"
Mr. Kirt Coury
September 29,2005
Page 2
.
Site Mitigation Program Property Database (formerly CaISites):
A Database primarily used by the California Department of Toxic Substances
Control.
.
Resource Conservation and Recovery Information System (RCRIS): A database
of RCRA facilities that is maintained by U.S. EPA.
Comprehensive Environmental Response Compensation and Liability
Information System (CERCLlS): A database of CERCLA sites that is maintained
by U.S.EPA.
Solid Waste Information System (SWIS): A database provided by the California
Integrated Waste Management Board which consists of both open as well as
closed and inactive solid waste disposal facilities and transfer stations.
Leaking Underground Storage Tanks (LUST) / Spills, Leaks, Investigations and
Cleanups (SLlC): A list that is maintained by Regional Water Quality Control
Boards_
.
.
.
Local Counties and Cities maintain lists for hazardous substances cleanup sites
and leaking underground storage tanks.
. The United States Army Corps of Engineers, 9.11 Wilshire Boulevard,
Los Angeles, California, 90017, (213) 452-3908, maintains a list of Formerly
Used Defense Sites (FUDS).
.
3) The NO should identify the mechanism to initiate any required investigation
and/or remediation for any site that may be contaminated, and the government
agency to provide appropriate regulatory oversight. If hazardous materials or.
wastes were stored and used at the site, a Site Assessment could determine if a
r.elease had occurred. If so, further studies should be carried out to delineate the
nature and extent of the contamination, and the potential threat to public health
and/or the environment should be evaluated. It may be necessary to determine If
an expedited response action is required to reduce existing orpotential threats to
public health or the environment. If no immediate threat exists, the final remedy
should be implemented in compliance with state regulations and policies.
4) All environmental investigations, sampling and/or remediation for the site should
be conducted under a Workplan approved and overseen by a regulatory agency
that has jurisdiction to oversee hazardous substance cleanup. The findings of
u
~
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---""~ITEMNO. 22
,e 3// of..1:D8_
'i!:.l,VVUf V ,....
n
Mr. Kirt Coury
September 29, 2005
Page 3
any investigations, including Phase I and II investigations should be summarized.
in the document. All sampling results in which hazardous substances were found
should be clearly summarized in a table,.
5) Proper Investigation, sampling and remedial actions overseen by a regulatory
agency, if necessary, should be conducted at the site prior to the new
development or any construction. All closure, certification orremediation
approval reports by these agencies should be included in the NO.
6) If any property adjacent to the project site is contaminated with hazardous
chemicals, and ifthe proposed project is within 2,000 feet from a contaminated
site. then the proposed development may fall within the "Border 20ne of a
Contaminated Property." Appropriate precautions should be taken prior to
construction if the proposed project is within a Border Zone Property.
7)
If buildings or, other structures, asphalt orconersts-paved surface areas are
being planned to be demolished, an'investigation would be conducted for the
presence of lead-based paints or products, mercury, polychlorinated biphenyls
(PCBs) and asbestos.containing mllterials (ACMs). If lead-based paints or
products, mercurY, PCBs or ACMs were Identified, proper precautions would be
taken during demolition activities. Additionally, the contaminants should be
remediated in compliallce with California environmental regulations and polic.ies.
I
n
8) The project construction may require soil excavation and soil filJ1ng in certain
areas. Appropriate sampling is required prior to disposal of the excavated soil.
If the soil is contaminated, properly dispose of it rather than placing it in another
location. Land Disposal Restrictions may. be applicable to these soils. Also, if.
the project proposes to import soil to backfill the areas excavated, proper
sampling should be conducted to make sure that the imported soil is free of
contamination.
9) Human health and the environment of. sensitive receptors should be protected
during the construction or demolition activities. A study of the site overseen by
the appropriate government agency might have to be conducted to. determine if
there are, have been, ol'will be, any releases of hazardous materials that may
pose a risk to human health. or the environment. .
(\
AOENDA ITEM NO. '? 12.
PAOE~OF~
....,.....,............ ............ ..... ........,.......
'&:oI".....-..,...-.,~
11 )
Mr. Kirt Coury.
September 29,2005
Page 4
u
10)
If it is determined that hazardous wastes are, or will be, generated by the
proposed operations, the wastes must be managed in accordance with the .
California Hazardous Waste Control Law (California Health and Safety Code,
Division 20, chaptl~r 6.5) and the Hazardous Waste Control Regulations
(California Code of Regulations, Title 22, Division 4.5).'
If it is determined that ha:<:ardous wastes are or will be generated and the wastes
are (a) stored in tanks or containers for more than ninety days, (b) treated onsite,
.or.(c) disposed of onsite, then a permit from DTSC may be required. If so, the .
facilny should contact DTSC at (714) 484-5423 to initiate pre application
discussions and determine the. permitting process applicable to the facility.
If it is determined that hazardous wastes will be generated, the facility should
obtain a United States Environmental Protection Agency Identification Number by
contacting (800) 618-6942.
13) Certain hazardous waste treatment processes may require authorization from I
the local Certified Unified Program Agency (CUPA). Information about the
requirement for authorization can be obtained by contacting your Jocal CUPA. :...J
14) If the project plans inciude discharging wastewater to storm drain, you may be
required to obtain a wastewater discharge permit from the overseeing Regional
Water Quality Control Board (RWQCB).
12)
15) If during construction/demolition of the project, the soil and/or groundwater
contamination is suspected, construction/demolition in the area would cease
and appropriate health and safety procedures should be implemented.
16) If the site was used for agricultural production, cattle or animal activities, onsite
salls and groundwater might contain pesticides; agricultural chemical, organic
waste or other related residue. Proper investigation, and remedial actions, if
necessary, should be conducted under the oversight of and approved by a
government agency who has jurisdiction at the site prior to construction of the
project. . .'
. DTSC provides guidance for cleanup oversight through the Voluntary Cleanup Program
(VCP) for other parties. For additional information on the VCp, please visit DTSC's web
site at www.dtsc.ca.gov.
u
ACENDA I~M NO. .? ~ .
PACE.2:d-=OF a..
IV/<::U<::VVO V;:I.OO r-....^ ;:10 PH Il'l t~
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Mr. Kirt Coury
September 29,2005
. Page 5
If you have any questions regarding this letter, please contact MS.Teresa Hom. Project
Manager, at (714) 484-5477 or email atthom@dtsc.ca.gov. . .
Sincerely.
Greg Holmes
Unit Chief
Southem California Cleanup Operations Branch - Cypress Office
cc:
Governor's Office of Planning and Research
State Clearinghouse
P.O. Box 3044
Sacramento, California 95812-3044
Mr. GuentherW. Moskat, Chief
Planning and Environmental Analysis Section
CEQA Tracking Cenler
Department of Toxic Substances Control
P.O. Box 806
Sacramento, California 95812-0806
CEQA# 1199
AGENDA ITEM NO. 2.2-
PACE ::::>v 0" f:.l1fb.::
.~<_..-~.~ ._._~ . ....
"C:oI . . -, . .-
V"'"~ ~,. II...... ....11.."'"
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Stata of California-Health and Human Services Agency
Department of Health Services
~
. '>.~';:.. .' ~
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SAHDRA SHEWRY
OIrecw
,
ARNOLDSCKWARZENEGGER
Govurnar
September 9, 2005
RECEIVED
SEP J... 2 2005
Clear
'1'3(H15
<2
Kirt A. Coury
City of Lake Elsinore
130 S. Main Street
Lake Elsinore, Callfomia 92530
STATE CLEARING HOUSE
RE: Tentative Tract Map No. 31593 - 2005091007
The California Department of Health Services (CDHS) is in receipt of the Mitigate~
Negative Declarallon for the above project.
If the City of Lake Elsinore plans to develop a new water supply well or make :
modifications to the existing domestic water treatment system to serve the Tentative
Tract Map No. 31593 project slle, sn appllcalion to amend the water systam pe~1t
must be ravlewed and approved by the CDHS RIverside District Office. These fu1ure
developments may be subject to separate environmental review. :
Please contact Steve Williams of the Riverside office at (619) 525-4159 forfurthet
Information. '
-L
. 2
J'U
Sincerely,
&,~f~
Bridge?t';nnlng
California Department of Health Services
EnvIronmental Review Unit
Olvlalon of O'inkfng WSle, and EnvironlMl'llal Management
Environmental Review Unit/Slate Re\lollIIng Fund/Prop 60
1618 CapiralAvanu., MS 7418. P.O. 8DXS97413, Sacramento CA 96809-7413
(916)449-5600 Fax: (916) 446.5856 c
Intsrnet Address: www.nnfi.r.il.nnv/nlllddwem
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AGENDA;ITEM NO. V)~!2--..
PAGd-LOF .ftia.
.......... -r' ..-." ........-,
oJ'''' ...;L.... ''''UG.,
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, Klrt A. Coury
Page 2
September 9, 2005
cc:
Steve Williams. Disllict Engineer
CDHS Riverside
1350 Front Street, Room 2050
San Diego. CA Q2101 '
State Clearinghouse
P.O. Box 3044
Sacramento, CA 95'612-3044
U'o;:;:t-J. 'IC."U...r" , I. '..:II""",",
-
"'C!;;jI= .:J
AGENDA! ITEM NO. 2JJ-
PAGE .:::Z;-}OF ~
10/27/2005 09:53 FAX 9514711419
l~rO-02/0-'3 '
'~
U
California Regional Water Quality Control Board
Santa Ana Region
e
September 28. 2005
Kirt A. Coury, Associate Planner
City of Lake Elsinore
130 S. Main Street
Lake Elsinore, CA 92530
,NOTICE OF COMPLETION MITIGATED NEGATIVE DECLARATION, TENTATIVE TRACT
MAP NUMBER 31593, CITY OF LAKE ELSINORE, STATE CLEARINGHOUSE NUMBER
#2005091007
RECEIVED
Arnold SChWBrz/ \er
G"",,,,,,,,V
Alan C. Lloyd. Ph.D.
Ag.ncy ~cntQry
3731 MaIn Street. Suite ,-00. rtivcnide, California 92S01-3148
Phone (951) 78'-4130-FAX (951) 78H'88
http://www.wtu.rboards.c~SDv/nnta3I\a
OCT 0 3 Z005
STATE CLEARJNG HOUSE
Dear Mr. Coury:
Staff of the Regional Water Quality Control Board, Santa Ana Region (RWQCB), has reviewed
the 'above referenced mitigated negative declaration (MND). The project associated with this
MND proposes to develop approximately 94 acres of land into 521 slngle,.family residential lots.
The project area is located north of Interstate 15 and east of State Route 74 In the City of Lake.
Elsinore. Currently, the area is undeveloped, and exhibits rolling hills covered with native and
ruderal vegetation. There are five main drainage systems within the proposed Project area.
Wasson Creek flows by the northwest comer of the proposed project. Four intermittent
drainages flow through the project site and .towards Wasson Creek. According to the Clean
Water Act Section 401 Water Quality Standards Certification (401 Certification) application that
this office received on March 25, 2005 from the project proponent, the four intermittent Uc
drainages, no the site wiUbe permanently impacted by cut and fill grading activities. Wasson
Creek will not be impacted or minimally so.
The MND stated that Wasson Creek and the majority of Drainage Systems 3 and 4 are
considered jurisdictional waters of ,the Un"ed States by the Army Corps of Engineers (ACOE).
The MND also stated that Drainage Systems 1 and 2 have no jurisdictional waters associated
with them because they were previously impacted. The MND implies that impacts to Drainage
Systems 1 and 2 do not need to be mitigated because they not considered jurisdictional waters
of the U.S.
On August 22, 2005, Jason Lambert of the ACOE visited the site with staff of the RWQCB and
representatives from Glen Lukas Associates, a consultanUor the project. After viewing
Drainages 1 and 2, Mr. Lambert determined that Drainages 1 and 2 are within the ACOE's
jurisdiction. Because the amount (both area and length) of impacts to jurisdictional waters of the
U.S. have been underestimated by the MND, a revised CEQA document should be prepared for
the project. The revised CECA document should consider the following: '
1) Currently, Drainages 1 through 4 support water quality beneficial uses recognized by
Water Quality Control Plan for the Santa Ana River Basin ("Basin Plan") for Temescal
Creek Reach 6, that can attributed to these drainage by application of the "tributary rule."
These uses include support of warm water habitat (WARM), wildlife habitat (WILD) and
contact (REC1) and non-contact (REC2) recreation. The loss of these beneficial uses
on these drainages is a signiflcant impact. Impacts to these drainages must be avoided
and/or minimized to the maximum extent possible. It appears that impacts to Drainage 3
California Ellvironmental Protection Agency
rr>
~~ R'<)I<l<dPaper
3
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A6ENb,A,ITE,M" NO.~, '
PAGE~_OF~
'10/27/2005 09:54 FAX 9514711419
~ 003/013
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'Kirt A, Coury
.2-
September 28>, 2005
or 4 could be avoided without significant reductions in the number of residential lots J
proposed. Drainage 3 appears to m~st support riparian habitat and the beneficial use,s of
WILD and REC2 of Drainages 1 through 4 and would be the best of those drainages to
protecl:qy fi~?!d.j~~ impacts to it. ,','
2) Where avoidance, of impacts'to'jUrisdictionalwaters is not practicable, impacts to ' I
beneficial uses of these waters must be minimized. Such disturbance requires ' " . L{
g!'lf1~roUs, i'1~kind mi~i9!ltion that, at a minimum, replaces the full water qualIty function
and value of the impaCted water and results in no net loss of wetlands. --.J
3) Minimize changes in hydrology and pOllutant loadIng; require incorporation of controls, -J
inCluding structural and non-structural BMPs, to mitigate the projected increases in non-
point source pollutant loads arid runoff flow volumes; ensure that post-development tC'
runoff rates and velocities from a site have no significant adverse impacts on :J
downstream erosion and receiving water beneficial uses, in part by maximizing the area ~
of permeable surfaces to allow more percolation of storm water into the ground. .
. . . .
4) Project runoff should not adversely impact beneficial uses attributed to Wassori Creek. J
The flood plain of Wasson Creek should be protected to be wide enough to allow mature
native riparian habitat to develop while allowing storm flOWS, to pass. Periodic treatment
of vegetation for flood control purposes does not support WARM should be avoided.,
5) The project applicant needs to be made aware that so-called "isolated waters" are
nevertheless waters of the State and consequently a project that impacts them may be
subject to individual waste discharge requirements pursuant to the ,Califomia Water
Code.
6) The mitigation purposed In the MND and: the 4Q1,-certi~~~tion applicationwilfhaveto be'
modified to include coverage 'for all impacts to jurisdiotionarwaters. oh, site. ' .', .: '
If you have any questions, please contact Dave Woelfel otmy staff at (951) 782-7960., or me at
(951) 182-3234.
-i
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S-
f
Sincerely,
\JV0cJ-C- Gd-L
-f
Mark G. Adelson, Chief
Regional Planning Programs Section
cc: Scott Morgan,.. State Clearinghouse
'c.
, ,
. .}
.'. >
California Environmental Protection Agency
o /l<cycl.d Pap<r
AGENDAIT~ ~?
,PAGE OF~
PAGE 3 - PLANNING CDMMISSION MINUIES -OCfOBER 18, 2005
OMMISSION OF TH CITY OF LAKE ELS
C IFORNIA, APPROVIN A MINOR DESIGN RE
OF INGLE FAMILY RES
LASH REET. .
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5. Tentative Tract Map No. 31593
Chairman LaPere opened the Public Hearing at 6:21 p.m.
Community Development Director Preisendanz provided a. brief overview of the proposed
project and requested Associate Planner Coury review it with the Commission and answer
questions.
Associate Planner Coury provided an overview of the proposed project . He noted that the lots
ranged in size from 6,000 to 10,000 square feet. He detailed the peaks and ridges included in the
development. He noted that the applicant had proposed to provide five pocket parks and ten
usable acres fora parkoffsiteto be used by residents of this project and the residents ofa future
project in the adjacent area. He stated. that the parks were conditioned to be fully constructed by
the first certificate of occupancy associated with this project. He indicated that the applicant had
requested a minor modification. to a condition related to providing water to the future park. U
Bob Krause, Southshore Properties, 6600 W. Charleston Blvd. Ste. 124, Las Vegas, Nv., thanked
staff for their efforts. He suggested a modification to Condition No. 9 on page 19 of 28 to
include language to clarifY future water and sewer service. He agreed with the staff report and
remaining Conditions of Approval. -,
Commissioner I'I}U1 addressed asunset clause on temporary water and sewer facilities.
City Engineer Seumalo stated that the temporary facilities are semi permanent until the new
project is completed and the improvements were installed. .
Vice Chairman O'Neal noted his support forthe project.
Commissioner Gonzales noted his support fOT the project.
Commissioner Larimer stated that the project was consistent with the development standards in
the City and stated her support.
Chairman LaPere addressed access to the parks.
Mr. Krause detailed the MSHCP requirement for,access to the area for public use.
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AGENDA Irq.. ~ O. r:::> (7
PACiE__<-t~OF .fQ2.L
PAGE 4 - PLANNING COMMISSION MINUIES -OCfOBER 18, 2005
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Chairman LaPere addressed the safety issue for children crossing an area where vehicles would
be present
Community Development Director Preisendanz noted that the City had met with RCA regarding
the road connection to ensure access to the park site. He stated that they were working with the
applicant to determine if access to the park would be vehicular or pedestrian.
Chairman LaPere stated his support for the project
There being no further business, Chairman LaPere closed the Public Hearing at 6:30 p.m.
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MOVED BY GONZALES, SECONDED BY LARIMER
AND PASSED BY A VOTE OF 5-0, APPROVING
RESOLUTION NO. 2005-122, A RESOLUTION OF TIlE
PLANNING COMMISSION OF THE CITY OF LAKE
ELSINORE, CALIFORNIA, RECOMMENDING TO THE
CITY COUNCIL ADOPTION OF' FINDINGS OF
CONSISTENCY WITH SECTIONS 6.1.2 AND 6.1.4 OF'
T~E MULTIPLE SPECIES HABITAT CONSERVATION
PLAN (MSHCP) FOR THE PROJECT IDENTIFIED AS
TENTATIVE TRACT MAP NO. 31593.
)
MOVED BY O'NEAL, SECONDED BY FRANCIA' AND
PASSED BY A VOTE OF 5-0, APPROVING RESOLUTION
NO. 2005-123, A . RESOLUTION OF THE PLANNING
COMMISSION OF THE CITY OF LAKE ELSINORE,
CALIFORNIA, RECOMMENDING TO THE CITY
COUNCIL OF THE CITY OF LAKE ELSINORE
APPROVAL.OF MITIGATED NEGATIVE DECLARATION
NO. 200~8
MOVED BY FRANCIA, SECONDED BY GONZALES AND
. PASSED BY A VOTE OF 5-0, APPROVING RESOLUTION
NO. 2005-124, A RESOLUTION OF THE PLANNING
COMMISSION OF THE CITY OF LAKE ELSINORE,
CALIFORNIA, RECOMMENDING TO THE CITY
COUNCIL OF THE CITY OF LAKE ELSINORE
APPROVAL OF TENTATIVE TRACT MAP NO. 31593
WHICII SUBDIVIDES 234.0 ACRES OF LAND INTO 521
RESIDENTIAL LOTS
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AGENDA ITEM NO. . ~
PACE 4. \'OF . -
- -~~.."'-
PLANNING COMMISSION
STAFF REPORT
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CityclWeElsil}()ll:
Planning Divi5 ion
130 S. MaD Street
LW Ebnore, CA 92530
(909)674-3124
(909) 471-J419fax
1~._.~1I~~1
DATE:
October 18, 2005
TO:
Chairman and Members of the Planning Commission
FROM:
. Roben A. Brady, City Manager
PREPARED BY:
Kin A. Coury, Associate Planner
PROJECT TITLE:
APPLICANT:
Tentative Tract Map No. 31593
Southshore Properties, LLC, 6600 W. Charleston Boulevard, Suite
124 Las Vegas, Nevada 89146 .
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REOUEST
The proposed project consists of the residential development of Tentative Tract Number 31593
(previously known as Tentative Tract 25171 and 26459) within the northeastern section of the City
of Lake Elsinore on approximately 234.0 acres pursuant to the requirements of Section 16
"Subdivisions" of the Lake Elsinore Municipal Code and section(s) 66424 and 66427 of the
California Subdivision Map Act (CSMA).
The project proposes to develop approximately 94 acres of the property into 521 single-family
residential lots with a minimum lot size of 6,000 square feet and a maximum lot size of 10,000
square feet. The project will include approximately94 acres of open space consisting of open lots,
landscaped slopes and a detention basin along the southeast boundaty, adjacent to Elsinore Hills
Drive. The project proposes to expand Elsinore Hills Drive to the north and build a road crossing
over Wasson Creek using a 30-foot wide arch structure. An additional 11 acres will be conserved in
the Multiple Species Habitat Conservation Plan. The residential development is clustered to the
north and south of a series of prominent peaks which run through the center of the property.
Approximately 61.3 acres containing the major ridgeline will be preserved in their natural state.
LOCATION
The subject site is located easterly of Interstate 15 and Camino Del None and northerly of the
extension of a proposed roadway link from Camino Del None to the Ramsgate Specific Plan area,
inunediately south of the Wasson Creek. The Spyglass Ridge Specific Plan abuts the project site to U
AGENDA 1TE1", NO.-20--
PAGE Y.'2_0F~
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PLANNING COMMISSION STAFF REPORT
October 18, 2005
PAGE2of5
PROJECT TITLE: TENTATIVE TRACT MAP NO. 31593
the south, vacant land abuts the property to the west, Tract Map No. 25473 is located to the east
and the Ramsgate Specific Plan is located to the north.
ENVIRONMENTAL SETTING
North
R-t, Single-Family
Residential/R,E Residential
Estate
Single Family/Vacant Specific Plan (Ramsgate
S ecific Plan
Vacant R-l, Single-Family Residential
The proposed tract map will subdivide the aforementioned 234.0~acres of residentially zoned land
into 521 single-family residential lots., The proposed lots will range in size from 6,000 square feet to
10,000 square feet with an average lot size of 7,730 square feet. '
The proposed subdivision has been' deemed to be consistent with the development standards in
Chapter 17.23 (R-1 Single-Family Residential District) of the LEMC, in that Chapter 17.23 requires
that all newly subdivided parcels be a minimum size of 6,000 square feet, and an average of 7,200
square feet. Further, the LEMCrequires that comer lots be a minimum of 7,700 square feet. The
proposed subdivision complies with these requirements.
It should be noted that the project will provide five private community "pocket parl<s" throughout
the proposed subdivision. In addition, the project has been conditioned to provide a minimum 10
"usable" acre off-site park on an adjacent parcel. The applicant owns the adjacent land and is
currently processing a tract map project (TIM 32013) on that site. The conditions require the
applicant to provide the identified park between the two projects to serve the future residents in the
immediate area. It should be further noted that the applicant is conditioned to construct said park in
"tum key" condition prior to the issuance of the first certificate of occupancy of this identified
('. residential subdivision (TIM 31593).
South
East '
Vacant (Ramsgate
West
Vacant
PROTECT DESCRIPTION
DISCUSSION
AGENDA ITEM NO. Q'2.
PAGE _Lf3~OF(A2r
PLANNING COMMISSION STAFF REPORT
October 18, 2005
PAGE30f5
PROJECT TITLE: TENTATIVE TRACT MAP NO. 31593
ENVIRONMENTAL
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The proposed Mitigated Negative Declaration No. 2005-08 has been prepared pursuant to Article 6
(Negative Declaration Process) and Section 15070 (Decision to Prepare a Negative or
Mitigated Negative Declaration) of the Califiymia Erwi:rrrormJal Qj&Jlity Ad (CEQA). Based on
staff's evaluation, the proposed project will not result in any significant effect on the environment.
Further, pursuant to Section 15073 (Public Review of a Proposed Negative Declaration or
Mitigated Negative Declaration) of the Califiymia Erwi:rrrormJal Quality Ad (CEQA), the intended
Mitigated Negative Declaration was submitted to the State ~ on September 1,2005 for the
required 30 day review period.
RECOMMENDATION
It is recommended that the Planning Commission adopt Resolution No 2005-~ recommending
Gty Council adoption of Findings of Consistency with Sections 6.1.2 and 6.1.4 of the MSHCP, and
Resolution No. 2005-_, recommending to the City Council approval of Mitigated Negative
Declaration No. 2005-08; and Resolution No. 2005- _,recommending to the Gty Council approval
of Tentative Tract Map No. 31593, based on the following Findings, and Exhibits 'A', thru 'E', and
the attached Conditions of Approval.
FINDINGS - MSHCP CONSISTENCY
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1. The proposed project is a project under the Gty's MSHCP Resolution that must make an
MSHCP Consistency finding before approval.
Pursuant to the City's MSHCP ResolutWn, because the profYJsal prujrt requires a IUII"I"Ikr of discrr?1imary
appruw/s frrm the City and is subjrt to CEQA review, it must /;e Tf!1JieroJi for MSHCP coosisrency, uhith
entails for the proJYJsai projea detenl1in~1g Wxther it is subftrt to the City's LEAP prvass, coosistent with the
Protmian of Species Associatai with RiprrrUrn/Riu:rine Areas and Venuti Pool Guidelines (MSHCP, S
6.1.2), GuUIelines Pertaining to TJrlun/WzkUand Inrerfall! (MSHCP, S 6.1.4), Additimal Surrxry Neais
and Promimes (MSHCP, S 6.3.2), Urlxm/WJdJands Inrerfall! GuUIelines (MSHCP, S 6.3.2), V~
Mapping (MSHCP, S 6.3.1) requirmmts, Fuels MantIf1!I"l'U Guidelines (MSHCP, S 6Aj, and ~ 0/
the MSHCP Loed DeWopw'lt Mitigatim Fee (MSHCP 0rcIinana?, S 4).
2. The proposed project is subject to the Joint Project Review process.
AmmIing to the Multi.SfX?OO Habitat 0Jnsernttim Plan (MSHCPj, the footprint of the projea site is locatai
'1iithin the EIsinnrr? Area Plan. This Arw. Plan, the 0Junty's Rap Website (sre
http://www.rrip.arg/matJ5.htm). and the (MSHCPj Canserwti.rn Summary RejXJrt Generator Sheet for the
an?a shaw that the profYJsal projea is locatai within Suhunit 5, Proposal Om> 1 and canprises a portim of QJf
Groups A: B' ami Z' of the Elsinarr Arw Plan ami is subjro to the City's LEAP prvass. . 1he projXJS8i
prujrt is locataiwithin Cells 4276 and 4367 of the MSHCP. CcnsermtilTlwithin the 01J Groupswillfixus
en chaparral, coastal sage scrub, riprrrU;rn scrub and u:axiJand and forest habita~ As a result, the prvfXJS<<i
projea has been subjrt to the Jaint Projrt Review prvass.
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AGENDA ITEM NO. '9 '2
me_4:!:LoF~ .
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PlANNING COMMISSION STAFF REPORT
October 18, 2005
PAGE4of5
PROJECT TITLE: TENTATIVE TRACT MAP NO. 31593
3. The proposed project is consistent with the Riparian/Riverine Areas and Vernal Pools
Guidelines. ...
No riparian, riwine,.wwJ pool/fairy shrimp hahitdt and other aquaticresourres'lre/"e ideruiJi<<i on the profX1S<<i
prujeasite. The Riwside fairy shrimp is not expoctRd to 0IDff en the proposed Piujoct site due to k:k ofsuitaHe
habitat. As a result, no fUrther MSHCP analysis ar cmsermtim rml5U11!S are requiml. The proposed prujrt
is therejUrecmsistentwith the Ripari;rn/Riwirie Areas and Vernal Pools Guidelines.
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4. The proposed project is. consistent with the Protection of Narrow Endemic Plant Species
Guidelines.
The projea site does fall within the Narrow EruiRmK Phnt Speciis Surny Areas. TherefOre,. a habiM
assessmmtW1S requimi fUr Narrow ~ Plant Species. The assessmmtW1S prepared by Michael 0Juffir, a
crnsulting ealngjst, in 0ctrJIx:r 2003 fUr Ban Terra Gmsulting. The proposed prujea has been determinal to k
cmsistent with the Protmim if Narrow EruImrK: Plant Species Guidelines.
. 5. The proposed project is consistent with the Additional Survey Needs and Procedures.
The projea site falls within the Burrowing Oed Surny Area. A burrowing mil surny= ~ by Helix
. Envirmrrmtd PLmning, h. in late JaTUIaIY 2004, far the winter fXJY1im, and late April early May 2004 fUr
the nesting JX>>1im if the surny.. No burrowing mds = deurted during either surny. Ibis surny =
~ in aaun:hncewith the CalifDmia iJepartmmt if Fish and G=(CDFG 1995) field proflXDl. Prim
to issuance of a grading JXm1it, the appliarnt shall CUI'Idua a burrowing mil presena/ abseme surny. If no
burrowing mds are fOund and other~ miJigatim rrnzsures baa: been satisfUd, the proposed Piujoct may
pnxmJ. Ha1iX?W", if the species is fOund onsite, the appliarnt shall de1Rlop and imJierrmt a burrowing 001
mitigatim plan fUrprotmim if the species in crm{iidna! with CD FG ProflXDl. The projea is therejUre cmsistent
with the Additimd Surny Nmis Requimmm.
6. The proposed project is consistent with the Urban/Wildlands Interface Guidelines.
Measures baa: been inaJrjxJratai into the proposed projea so that there will k no projea-relatai drainag!, toro,
lighting, noise, inwsiu?s, hmiers, and grading/land deuiopnmt im[w:ts to the Cmsen.utim A rea. 7he
proposed prujrt is therefUre coosistent with the lJrb-m/WzIdbnds lnterfaa: Guidelines.
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7. The proposed project is consistent with the Vegetation Mapping requirements.
The ugetatim of the entire projea site has been I7IitjJfJe1i. · This mapping is sufjidmt under the MSHCP and is
cmsistentwith the MSHCP.
8. The proposed project is consistent with the Fuels Management Guidelines.
The proposed prujeawill k desigmd to indude landscajX; buffers near the proposed MSHCP Cmsen.utim Area
that will in essenre act as Fuel Modifimtim Zones. WIthin these areas there will k fire-resistant, nm-inmsiu?
plants. Acrordingly, With these rrnzsures, the proposedprujrt is. therejUre cmsistent with the Filels Managmmt
Guidelines. .
9. The proposed project will be conditioned to pay.the City's MSHCP Local Development
Mitigation Fee. .
AGENDA ITEM NO.. ~
PAGIL..fl~toF . .
PlANNING COMMISSION STAFF REPORT
October 18, 2005
PAGE5of5
PROJECT TITLE: TENTATIVE TRACT MAP NO. 31593
As a cunditimofapprua1l, theprojrtwilllxrrquimltopaythe Citys MSHCP LOO1l DeWiJpmu Mitigatim
Fee at the time ofissUdJUEofbuildingpermiJs. "
10. The proposed pioject overall is consistent with the MSHCP.
The proJXJSed projrt crmplies and is cmsistent uith all of the rrquimJ prmr/ures, fXJ!icies, and g;tide/ines of the
Citys MSHCP Resolutim and the MSHCP. The applicant has made revisims to the projrt (ff has agrmi to
spt:ri/U: cunditims, which uuu1d awid the ef/octs (ff mitigate the ef/octs of the projrt to a point uhre rID sigrR/iavrt
" ef/octs uuu1d oaur.
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FINDINGS-MITIGATED NEGA TIVE DEClARATION
1. Revisions in the project plans or proposals made by or agreed to by the applicant before a
proposed mitigated negative declaration and initial study are released for public review would
avoid the effects or mitigate the effects to a point where clearly no significant effects would
occur; and
The applicant has made revisims to. the projrt and has agrmi to sprificcunditims which will awid the ef/octs
and will mitigate the ef/octs of the projrt to a point uhre rID sigpi/imnt ef/octs uuu1d oaur.
2. There is no substantial evidence, in the light of the whole record before the agency, that the
project as revised may have significant effect on the environment.
Pursuant to the evidauE m:eimi in the light of the uiJoIe rewrd presentai to staff the projrt will not hare a
sigrR/iavrt e/firt on the emirrrrnmt based on the mm:nt projrt design, the appliaWle 0mdi1inns of AJl/lTUl.U4
inaJrjxJratim of the Mitigatim Measures and imJlmx:ntatim of the Mitigatim Monitoring Prugram.
3. Mitigation measures have been required to ensure all potentially significant impacts are reduced
to levels of insignificance. "
" Mitigatim mmsures hare lren rrquimJ which will ra/ua; sigpi/imnt erwirrnrrmtal irnjXJ11S to the 1euJ"of
insig;zijiaoue. These are reJlected in the Mitigated Negatire Deddratim and will Ix imp/RmentRd thrvug/J the
Mitigatim Monitoring Prugram
FINDINGS - TENTATIVE TRACT MAP
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1. The proposed subdivision, together with the provisions for the design and improvement, are
consistent with the General Plan; Zoning Code; Title 16 of the Municipal Code relating to
Subdivisions; and the State Subdivision Map Act.
The projrt has lren revieuai by the City and the approprUue a/firurJ Agencies and lren deterrninHl to Ix
cmsi.stentwith the desi8J1l1f1!d koul use planning area, deuJoprrmt and desif!fl standards, and all other aJ1>>OfJ,iate
rrYJUimnmts cmtainei in the General Plan, Zoning 0xIe, City Municipal 0xIe, and SulxIivisim Map Act.
2. The proposed subdivision is compatible with. the objectives, policies, general land uses and
programs specified in the General Plan (Government Code Section 66473.5).
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AGENDA ITEM. NO. J~:
PACiE_~OF ..
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PLANNING COMMISSION STAFF REPORT
October 18, 2005
PAGE6of5
PROJECT TITLE: TENTATIVE TRACT MAP NO. 31593
The prvja has ken rezie1mi by the City and the appropriate aJfOCtnd Agmcie5 and ken rletenninai to Ix!
ansistent with the kmd use pbn, deuJopnnt.and design stt:rndarrJs and J7r0grtD17S, and all other upfAofll iate
rf:quirmmts cmtaintd in the General PIL1n. .
3. The effects this propbsed subdivision is likely to have upon the housing needs of the region, the
public service requirements of its residents, and the available fiscal and environmental resources
have been considered and balanced .
The prvja is ansistent with the Gty'sGeneral Plan and Zaning Oxk, and will prur.;Kk 00using opjXJI1J01iJies
insistent with the General Plan kmd use desigpatim. In additim, the prvja has lim ~ to jJYrJdI.k
r!lrE55aTJ puhIir senices and facilities, will pay all appropriate fees, and will not result in any adu:rse
emirrrormtal imJ=t. . . .
4. The design of the subdivision provides to the greatest extent possible, for future passive or
Datural heating or cooling opportunities in the subdivision (Government Code Section 66412.3).
The prvja will amjXy with all appropriate cmsermtim ~ of the City and unijiwn Building .Oxk
and will not prn:/ude fUtme opjXJI1J01iJies fin- passiu: naJJ./:ral heating or axl.ing opJX>>1Unities.
, .
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Prepared by:
Reviewed by:
Kirt A. Coury, Associate Planner
~ z, Planning Man
Approved by:
EXHIBITS
Anadrments
Exhibit 'A'
Exhibit 'B'
Exhibit 'C'
Exhibit '0'
. Exhibit 'E'
Location Map
Tentative Tract Map 31593
Mitigated Negative Declaration No. 2005.08 '
Commen~ Letters associated with_Mitig?!ed Neg~tive Declaration No. 200?-O8
Full Size Exhibits
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ACiENDA ITEMN~. I?~
PACe...:.. Y i..OF___
RESOLUTION NO. 2005-122
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A RESOLUTION OF THE PLANNING COMMISSION
OF THE CITY OF LAKE ELSINORE, CALIFORNIA,
RECOMMENDING TO THE CITY COUNCIL
ADOPTION OF FINDINGS OF CONSISTENCY WITH
SECTIONS 6.1.2 AND 6.1.4 OF THE MULTIPLE
SPECIES HABITAT CONSERVATION PLAN (MSHCP)
FOR THE PROJECT IDENTIFIED AS TENTATIVE
TRACT MAP NO. 31593
WHEREAS, consistency with the MSHCP is requir~d and a site specific focused survey
for consistency with Riparian/Riverine Areas and Vernal Pool Guidelines is required by Section
6.1.2 of the Multiple Species Habitat Conservation Plan (MSCHP) and Guidelines Pertaining to
UrbanIWildland Interface by Section 6. 1.4 of the MSCHP for the purpose of a Tentative Tract
Map; and
WHEREAS, the City of Lake Elsinore evaluated the consistency of the project with the
(MSHCP); and
WHEREAS, the Planning C~mmission 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; and
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WHEREAS, public notice of said application has been given, and the Planning
Commission has considered and approved the request by staff on October 18, 2005; and
WHEREAS, the Planning Commission of the City of Lake Elsinore DOES HEREBY
RESOLVE as follows:
A Habitat Assessment prepared by Helix Environmental Planning, Inc. has been
prepared, 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 identified as Tentative Tract Map
No.3 I 593 and will not preclude the implementation of the MSHCP goals, based on the
following finding;
FINDINGS~MUL TIPLE SPECIES HABITAT CONSERVATION PLAN
I. The proposed project is a project under the City's MSHCP Resolution that must make an
MSHCP Consistency finding before approval.
Pursuant to the City's MSHCP Resolution, because the proposed project requires a number
of discretionary approvals from the City and is silbject to CEQA review, it must be reviewed
for MSHCP consistency, which entails for the proposed project determining whether it is
subject to the City's LEAP process, consistent with the Protection of Species Associated with U
Riparian/Riverine Areas and Vernal Pool Guidelines (MSHCP, g 6.1.2), Guidelines
Pertaining to Urban/Wildland Interface (MSHCP, S 6.1.4), Additional Survey Needs and
ACENDA ITEM. NO. 2 ~ ~
PAOE:\-B-Of .)
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PLANNING COMMISSION RESOLUTION FOR
TENTATIVE TRACT MAP NO. 31593
Page 2 of 4
. Procedures (MSHCP, S 6.3.2), Urban/Wildlands Interface Guidelines (MSHCP, S 6.3.2),
Vegetation Mapping (MSHCP, S 6.3.1) requirements, Fuels Management Guidelines
(MSHCP, S 6.4), and payment of the MSHCP Local Development Mitigation Fee (MSHCP
Ordinance, S 4).
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2. The proposed project is subject to the Joint Project Review process.
According to the Multi-Species Habitat Conservation Plan (MSHCP), the footprint of the
project site is located within the Elsinore Area Plan. This Area Plan, the County's RCIP
Website (see httv://W>!.w.rciv.orrz/mavs.htm!, and the (MSHCP) Conservation Summary
Report Generator Sheet for the area show that the proposed project is located within Subunit
5, Proposed Core.1 and comprises a portion of Cell Groups A', B' and Z' of the Elsinore
Area Plan and is subject to the City's LEAP process. The proposed project is located within
Cells 4276 and 4367 of the MSHCP. Conservatiqn within the Cell Groups will focus on
chaparral, coastal sage scrub, riparian scrub and woodland and forest habitat. As a result,
the proposed project has been subject to the Joint Project Review process.
. .
3. The proposed project is consistent with the Riparian!Riverine Areas and Vernal Pools
Guidelines.
No riparian, riverine, vernal pool/fairy shrimp habitat and other aquatic resources were
identified on the proposed project site. The Riverside fairy shrimp is not expected to occur
on the proposedProject site due to lack of suitable habitat. As a result, no further MSHCP
analysis or conservation measures are required. The proposed project is therefore
consistent with the Riparian/Riverine Areas and Vernal Pools Guidelines.
4. The proposed project is consistent with .the Protection of Narrow Endemic Plant Species
Guidelines.
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. The project site does fall within the Narrow Endemic Plant Species Survey Areas. Therefore,
a habitat assessment was. required for Narrow Endemic Plant Species. The assessment was
prepared by Michael CoufJer, a consulting ecologist, in October 2003 for Bon Terra
Consulting. 'The proposed project has been determined to be consistent with the Protection
of Narrow Endemic Plant Species Guidelines.
5. . The proposed project is consistent with the Additional Survey Needs and Procedures. .
The project site failS within the Burrowing Owl Survey Area. A burrowing owl surveywa;
conducted by Helix Environmental Planning, Inc. 'in late January 2004, for the winter
portion, and late April early May 2004 for the nesting portion of the survey. No burrowing
owls were detected during either survey. This survey was conducted in accordance with the
California Department of Fish and Game (CDFG 1995) field protocol. Prior to issuance of
a grading permit; the applicant shall conduct a burrowing owl presence/absence survey. if
no burrowing owls are found and other biological mitigation measures have been satisfied,
the proposed Project may proceed. However, if the species is found onsite, the applicant
shall develop and implement a burrowing owl mitigation plan for protection of the species in
AGENDA ITEM. NO. ~.
PACE. If[OF.''. --
PLANNING COMMISSION RESOLUTION FOR
TENTATIVE TRACT MAP NO. 31593
Page 3 of 4
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compliance with CDFG Protocol. The project is theref?re consistent with the Additional
Survey Needs Requirements.
6. The proposed project is consistent with the UrbanlWildlands Interface Guidelines.
Measures have been incorporated into the proposed project so that there will be no project-
related drainage, toxics, lighting, noise, invasives, barriers, and grading/land development
impacts to the Conservation Area. The proposedproject is therefore consistent with the
Urban/Wildlands Interface Guidelines.
7. The proposed project is consistent with the Vegetation Mapping requirements.
The vegetation of the entire project site has been mapped.' This mapping is sufficient under
the MSHCP and is consistent with the MSHCP.
8. The proposed project is consistent with the Fuels Management Guidelines.
The proposed project will be designed to include landscape buffers near the proposed
MSHCP Conservation Area that will in essence act as Fuel Modification Zones. Within
these areas there will be fire-resistant, non-invasive plants. Accordingly, with these
measures, the proposed project is therefore consistent with the Fuels Management
Guidelines. .
9. The proposed project will be conditioned to pay the City's MSHCP Local Development U
Mitigation Fee. '
As a condition of approval, the project will be required to pay the, City's MSHCP Local
Development Mitigation Fee at the time of issuance of building permits.
] O. The proposed project overall is consistent with the MSHCP.
The proposed project complies and is con~istent with all of the required procedures, policies,
and guidelines of the City's MSHCP Resolutil;m and the MSHCP. The applicant has made
revisions to the project or has agreed to specific conditions, which would avoid the effects or
. . mitigate the effects of the project to a point where no significant effects would occur.
NOW,THEREFORE, based on the above findings, the Planning Commission of the City
of Lake Elsinore DOES HEREBY RECOMMEND. that the City Council of the City of Lake
Elsinore adopt theFindings of Consistency Sections 6.1.2 and6.1.4.
Ron LaPere, Chairman
Lake Elsinore Planning Commission
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AGENDA ITEM H~. I~V2
PACE15CJ...OF Jil!!L.
,
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PLANNING COMMISSION RESOLUTION FOR
TENTATIVE TRACT MAP NO. 31593
Page 4 of 4
I hereby certifY that the preceding resolution was adopted by the Planning Commission at a
. meeting thereof conducted on October 18, 2005 by the following vote:
AYES:
Commissioners:
LAPERE, ONEAL, GONZALES, FRANCIA,
LARIMER
NOES: Commissioners: .
ABSENT: .Commissioners:
ABSTAIN: Commissioners:,
ATTEST:
Rolfe Preisendanz, Secretary to the Planning Commission
AGENDA ITEM NO~
., PACED \
?V)~
OF~-
RESOLUTION NO. 2005-123
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A RESOLUTION OF THE PLANNING COMMISSION OF
THE CITY OF LAKE ELSINORE, CALIFORNIA,
RECOMMENDING TO THE CITY COUNCIL OF THE.
CITY OF LAKE ELSINORE APPROVAL OF MITIGATED
NEGATIVE DECLARATION NO. 2005-08
WHEREAS, Southshore Properties, LLC, has submitted an application for Tentative
Tract Map No. 31593. The approximate 234.0 acre site is located easterly of Interstate IS and
Camino Del Norte and northerly of the extension of a proposed roadway link from Camino Del
Norte to the Ramsgate Specific Plan area, immediately south of the Wasson Creek; and
WHEREAS, Tentative Tract Map No. 31593 is defined as a "project" by Section 21065
of the California Environmental Quality Act (CEQA), Cal. Public Resources Code
Section 21000 et seq., which is defined as an activity which may cause either a direct physical
. change in the environment, or a reasonably foreseeable indirect physical change in the
environment and which includes the issuance to a person of a lease, permit, license, certificate,
or other entitlement for use by one or more public agencies; and
WHEREAS, Mitigated Negative Deelaration No. 2005-08 has been prepared to evaluate
environmental impacts resulting with the project; and
WHEREAS, the Planning Commission of the City of Lake Elsinore has been delegated U
with the responsibility of making recommendations to the City Council for approving Mitigated
Negative Declaration No. 2005-08; and
WHEREAS, public notice of said applications 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 October 18,
2005.
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 Mhigated
Negative Declaration No. 2005-08, prior to making a decision to recommend approval to the
City Council. The Planning Commission finds and determines that Mitigated Negative
Declaration No. 2005~08 is adequate and prepared in accordance with the requirements of the
California Environmental Quality Act (CEQA) which analyzes environmental effects of the
project, based upon the following findings and determinations:
SECTION 2. That in accordance with State Planning and Zoning law and the City of
Lake Elsinore the following findings for the approval of Mitigated Negative Declaration No.
2005-08 have been made as follows:
I. Revisions in the project plans or proposals made by or agreed to by the applicant before a
proposed mitigated negative declaration and initial study are released for public review
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AGENDA~NO. ~~
PACE ....~2. OF_ .._
o
PLANNING COMMISSION RESOLUTION FOR
MITIGATED NEGATIvE DECLARATION NO.200S-0S
Page 2 of 3
would avoid the effects or mitigate the effects to a point where clearly no significant effects
would occur; and
The applicant has made revisions to the project and has agreed to specific conditions which
will avoid the effects and will mitigate the effects of the project to a point where no
significant effects would occur.
2. There is no substantial evidence, in the light of the whole record before the agency, that the
project as revised may have significant effect on the environment.
Pursuant to the evidence received in the light of the whole record presented to staff the
project will not have a significant effect on the environment based on the current project
design, the applicable Conditions of Approval, incorporation of the Mitigation Measures and
implementation of the Mitigation Monitoring Program.
3. Mitigation measures have been required to ensure all potentially significant impacts are
reduced to levels of insignificance.
Mitigation measures have been required which will reduce significant environmental impacts
to the level of insignificance. .These are reflected in the Mitigated Negative Declaration and
will be implemented through the Mitigation Monitoring Program.
o NOW, THEREFORE, based on the above findings, the Planning Commission of the City
of Lake Elsinore DOES HEREBY RECOMMEND that the City Council of the City of Lake
Elsinore approve Mitigated Negative Declaration No. 2005-08.
Ron LaPere, Chairman
Lake Elsinore Planning Commission
I hereby certify that the preceding resolution was adopted by the Planning Commission at a
meeting thereof conducted on October 18, 2005 by the following vote:
AYES:
Commissioners:
LAPERE, O'NEAL, GONZALES, FRANCIA,
LARIMER
NOES: Commissioners:
ABSENT: Commissioners:
ABSTAIN: Commissioners:
o
AGENDA ITEM NO. 2~_
PACE 53 OF_t;~
-- -
PLANNING COMMISSION RESOLUTION FOR
MITIGATED NEGATIVE DECLARATION NO. 2005-08
Page 3 of 3
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ATTEST:
Rolfe Presendanz, Secretary to the
Planning Commission
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AGEN[)A~~4f?oa .
PAGE, c Of~.u-
{'I
RESOLUTION NO. 2005-124
A RESOLUTION OF THE PLANNING COMMISSION OF
THE CITY OF LAKE ELSINORE, CALIFORNIA,
RECOMMENDING TO THE CITY ,COUNCIL OF THE
CITY OF LAKE ELSINORE APPROVAL OF TENTATIVE
TRACT MAP NO. 31593 WHICH SUBDIVIDES 234.0
ACRES OF LAND INTO 521 RESIDENTIAL LOTS
WHEREAS, Southshore Properties. LLC, has submitted an application for Tentative
Tract Map No. 31593.which subdivides 234.0 acres ofland into 521 residential lots. Tentative
Tract Map No. 31593 is generally located easterly of Interstate 15 and Camino Del Norte and
northerly of the extension of a proposed roadway link from Camino Del Norte to the Ramsgate
Specific Plan area, immediately south of the Wasson Creek; and
WHEREAS, the Planning Commission of the City of Lake Elsinore has been delegated
with the responsibility of making recommendations to the City Council pertaining to the
subdivision ofIand; 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 October 18,
2005.
n
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 subdivision,
Tentative Tract Map No. 31593, prior to making a decision to recommend that the City Council
. approve the proposed subdivision. The Planning Commission finds and determines that
Mitigated Negative Declaration No. 2005-08 is adequate and prepared in accordance with the
requirements of the California Environmental Quality Act (CEQA) which analyzes
environmental effects of the Tentative Tract Map No. 31593, based upon the following findings
and determinations:
SECTION 2. That in accordance with ,State California Subdivision Map Act and
requirements of the City of Lake Elsinore the following findings for the approval of Tentative
Tract Map No. 31593 have been made as follows:
1. The proposed subdivision, together with the provisions for the design and improvement, are.
consistent with the General Plan; Zoning Code; Title 16 of the Municipal Code relating to
Subdivisions; and the State Subdivision Map Act.
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The project has been reviewed by the City and the appropriate affected Agencies and been
detennined to be consistent with the designated land use planning area, development and
design standards, and all other appropriate requirements contained in the General Plan,
Zoning Code, City Municipal Code, and Subdivision Map Act.
AGENDA ITEM NO., '?~
PAGE ~5 OF':c
PLANNING COMMISSION RESOLUTION FOR
TENTATIVE TRACT MAP NO. 31593
Page 2 of 3
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2. The proposed subdivision is compatible with the objectives, policies, general land uses and
programs specified in the General Plan (Government Code Section 66473.5).
The project has been reviewed by the City and the appropriate affected Agencies and been
determined to be consistent with the designated land use planning area, development and
. design standards, and all other appropriate requirements contained in the General Plan,
Zoning Code, City Municipal Code, and Subdivision Map Act.
3. The effects this proposed subdivision is likely to have upon the housing needs of the region,
the public service requirements of its residents, and the available fiscal and environmental
resources have been considered and balanced.
The project is consistent with the City's General Plan and Zoning Code. and will provide
housing opportunities consistent with the General Plan land use designation... In addition.
the project has been conditioned to provide necessary public services and facilities, will pay
all appropriate fees. and will not result in any adverse environmental impact.
4. The design of the subdivision provides to the greatest extent possible, for future passive or
natural heating or cooling opportunities in the subdivision (Government Code Section
66412.3).
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The project will comply with all appropriate conservation requirements of the City and
Uniform Building Code and will not preclude future opportunities for passive natural heating
or cooling opportunities.. .
NOW, THEREFORE, based on the above findings, the Planning Commission of the City
of Lake Elsinore DOES HEREBY RECOMMEND that the City Council of the City of Lake
Elsinore approve Tentative Tract Map No. 31593.
Ron LaPere, Chairman .
. Lake Elsinore Planning Commission
I hereby certify that the preceding resolution was adopted by the Planning Commission at a
meeting thereof conducted on October 18, 2005 by the following vote:
AYES:
Commissioners:
LAPERE, O'NEAL; GONZALES, FRANCIA,
LARIMER
NOES:
Commissioners:
ABSENT:
Commissioners:
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ACENDA ITEM NO. "J..Q
PAGE 5.0 OF -co<C>;.
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PlANNING COMMISSION RESOLUTION FOR
TENTATIVE TRACT MAP NO. 31593
Page 3 of 3
ABSTAIN: Commissioners:
ATTEST:
Rolfe Preisendanz, Secretary to the
Planning Commission
AGEN~TE~ i:~~
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GENERAL
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. 31593, 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 notil)r the applicant of any such
claim, action, or proceeding against the City and will cooperate fully with the defense.
TENTATIVE TRACT MAP NO. 31593
2. Tentative Tract Map No. 31593 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. The Tentative Tract 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.
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4. 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.
5. Prior to the recordation of the Final Map for Tract No. 31953 (the "Final Map"), the applicant shall
make an irrevocable offer for fee dedication for local park purposes to the City of Lake Elsinore for
the following described property:
[Legal description to be provided by the applicant prior to Planning Commission Hearing]
(Hereinafter, the "Park Site")
In exchange for:
[Assessor Parcel Number (APN) 363-020-011]
(Hereinafter, the" Agency Remnant Site")
The form of the property exchange shall be in the nature of a land transfer agreement between the
Redevelopment Agency, the City and Applicant in a form suitable to the City and as shall be
approved by the City Attorney. Said agreement shall provide: (i) the transfer of the Park Site to the
Agency free and clear of money and all other encumbrances, liens, leases, fees, easements (except
routine easements that do not materially impair the intended use of the land), assessments and
unpaid taxes except those meeting the reasonable approval of the City Manager; (ii) the transfer of
the Agency Remnant Site free and clear of money and all other encumbrances, liens, leases, fees,
easements (except routine easements that do not materially impair the intended use of the land), U
assessments and unpaid taxes except those meeting the reasonable approval of the Applicant; (iit)
Plalming Commission
Approved October 18,2005
AGENDA ITEM NO. f) l')
PAGE~O~ .li2~--,
CONDITIONS OF APPROVAL
Page 2 ofl0
TENTATIVE TRACT MAP NO. 31593
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compliance with applicable laws; and (iv) such usual and customary provisions as are necessary to
accomplish the transfer.
The transfer of fee title to the Pm Site shall occur prior to or concurrent with the recordatio~ of
the Final Map. City shall be responsible for complying with CEQA following submission of the
prelirninary concept plan for the Pm Site. , '
6. Prior to the recordation of the Final Map, the Applicant shall submit a preliminary concept plan of
the proposed recreation facilities and amehities on the Pm Site to the Director of Community
Services for review and approval. Applicant shall also post a performance bond in the amount of
two-million dollars ($2,000,000.00) guaranteeing the construction of the park as provided herein
which shall stay in place until the completion of the improvements to the Pm Site.
7. Prior to the issuance of the first building permi4 the .Applicant shall submit to the Director of
Community Services, for review and approval, detailed pm facilities plans , landscape plans,
irrigation plans and such other plans as may reasonably be required for purposes of constructing a
10 usable acres "turn-key" public park.
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8. Prior to the issuance of ftrstCertiftcate of Occupancy for Tract No. 31953, Applicant shall grade the
Pm Site to provide a minimum of ten (10) usable and creditable acres and shall secure the Pm Site
against erosion and shall stub out sewer, water, gas, electricity, telephone, storm drain, etc
connections to the property line. .
9. Prior to issuance of the fiftieth (50"') Certificate of Occupancy, Applicant shall provide of adequate
sewer, water, gas, electricity, telephone, storm drain, within the Pm Site as are necessary to serve
the Park Site. In the ezmt permanent fl1liJities are not m.uiIahIe, the applicant shall pruvide tEmpdrary fl1liJities at
not cost to the City (A1'l1U1dtriatPlanningCcmnissimMeetingofCJctolxr 18,2005). ,
10. Prior to the recordation of the Final Map, the Applicant shall obtain an easement for a public access
road directly connecting the proposed development and the Pm Site (the "Pm Easement"). The
City and Applicant anticipate that the Park Easement will connect the proposed development to the
Pm Site near Parcel No.2 as set forth in Tract Map No. 32013.
11. Prior to the issuance of the ftrst building permit for Tract No. 31953, Applicant 'shall submit a plan
and sectional views indicating the grade and width of the Park Site Access Road measured flow-line
to flow -line.
12. Prior to the issuance of the first Certiftcate of Occupancy for Tract No. 31953, Applicant shall
construct the Pm Site Access Road.
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13. Prior to the issuance of the first Certificate of Occupancy for Tract No. 31953, Applicant shall ,
construct the Park Site improvements and amenities consistent with the prelirninary plan such that
the Pm Site is in a "turn-key" condition. City shall provide Applicant with all reasonable and
appropriate entry rights onto the Park Site for purposes of constructing the improvements as
provided herein.
Planning Commission
Approved OClober 18,2005
AGENDA ITEM NO. '7l?
PACE f""Q orJ;:.C>S-
CONDITIONS OF APPROVAL
Page 3 of 10
TENTATIVE TRACT MAP NO. 31593
14. With respect to park fees paid or to be paid by Applicant, Applicant shall be entitled to a fee credit
(or fee reimbursement for park fees already paid) to the extent of Applicant's actual on-site
construction costs of the park improvements on the Park Site. Applicant shall also be entitled to
reimbursement for park fees actUally paid under Tract 32013 or a fee credit if Applicant continues
ownership of Tract 32013. Accordingly, Applicant and City shall enter into a fee reimbursement
agreement reflecting such use of fees and providing, further, to the extent allowed by law and
subject to the discretion of the City Council, the use of community facilities district bond proceeds
for reimbursement of developer's cost incurred. with respect to public capital improvements,
including the Park Site and the Park Site Access Road.
15. The applicant shall comply with all the mitigations contained and identified in the Mitigated
Negative Declaration No. 2005-08.
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16. All lots shall comply with minimum standards contained in the LEMC.
17. A precise surveywithdosures for boundaries and all lots shall be provided per the LEMC.
18. The applicant shall comply with all conditions of the Riverside County Fire Department.
19. The applicant shall meet all requirements of Elsinore Valley Municipal Water District (EVMWD).
20. All future structUral development associated with this map shall require separate Design Review U
approval.
21. Priorto 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 Deparmient.
22. 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.
23. 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.
24. The applicant shall pay applicable fees and obtain proper clearance from the Lake Elsinore Unified
School District (LEUSD) prior to issuance of building permits.
. .
25. The Multiple Species Habitat Conservation Fee (MSHCP) will be due upon issuance of each
building permit.
26. The applicant shall pay all applicable fees including park fees.
27. The applicant shall meet all requirements of the providing electric utility company. .
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Planning Commission
Approved Onohor 18.2005
AGENDA ITEM NO. '? '?-
PAGE It:C3 OF Lo~B..
CONDITIONS OF APPROVAL
Page 4 of 10
TENTATIVE TRACT MAP NO. 31593
(1
28. The applicant shall meet all requirements of the providing gas utility company.
29. The applicant shall meet all requirements of the providing telephone utility company.
30. A bond is required guaranteeing the removal of all trailers used during construction.
31. All signage shall be subject to Planning Division review and approval priorto installacion.
32. The City's Noise Ordinance shall be met during all site preparation activity. Construction shall not
commence before 7:00 AM and cease at 5:00PM, Monday through Friday. Construction activity
shall not take place on Saturday, Sunday, or any Legal Holidays.
33. Prior to issuance of a Building Permit, the applicant shall annex into the appropriate Landscaping
and Lighting Maintenance District (LLMD).
. .
, "
, .
34. Prior to issuance of a B~ilding Pennit;' the applicant shall annex into the appropriate Community
Facilities District (CFD).
ENGINEERING
34. Construct Elsinore Hills Road at full width secondary arterial standard (70'/90') within project
n boundaries by frrst certificate of occupancy.
" .
35. Construct Elsinore Hills Road from the project's south boundary to Gmino Del Norte (proposed
CFD links H and G). Two full lanes and shoulders are the minimum requirement. At intersections,
additionally widening will be required for left turn lanes-all priorto first certificate of occupancy.
The roadway shall be designed to secondary arterial standards.
, .
36. Construct Camino Del Norte to two full lanes and shoulders (proposed CFD link F) prior to first
certificate of occupancy. The roadway shall be designed to Major Arterial standards (80'/100').
37. Improv'e the intersection of Camino Del Nort~ ;rr;d Main Street as determined' by the City Engineer
prior to first certificate of occupancy. I
'38. Install a traffic signal at Main Street and the northbound 1-15 ramps prior,to the 100"' certificate of
occupancy.
39.. Construct Elsinore Hills Road to full width and connect to Tract 2;;478 prior to first certificate of
occupancy.
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40. Join the proposed CFD when it is formalized.
41. All Public Womsrequiremems shall be complied with asa condition of development as specified in
the Lake Elsinore Municipal Code (LEMC) prior to fmal map approval.
PLanning Commission
Approved October 18, 2005
AGENDA ITEM NO. 22-
PAClE~oF_1!nB
CONDITIONS OF APPROVAL
Page 5 of 10
TENTATIVE TRACT MAP NO. 31593
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42. Pay all Capital Improvement and Plan Check fees (LFMC 16.34, Resolution 85-26).
43. Submit a ''Will Serve" lener 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 fmal map approval.
44. Construct all public works improvements per approved street plans (LFMC 12.04). Plans must be
approved and signed by the City Engineer prior to final map approval (LFMC 16.34).
45. 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 (LFMC 12.04 and 16.34).
46. Street and alley 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 (LFMC 12.04 and 16.3,4).
47. Applicant shall enter into an agreement with the City for the construction of public works'
improvements and shall post the appropriate bonds prior to fmal map approval.
48. Applicant shall obtain any necessaty Caltrans permits and meet all Caltrans requirements.
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49. Desirable design grade for local streets should not exceed 9%.
50. Interior streets shall be designed with 9% as the desired grade and intersecting streets shall meet at a
, maximum grade of 6 %
51. Pay all fees and meet requirements of encroachment permit issued by the Engineering Division for
construction of public works improvements (LFMC 12.08 and Resolution 83-78).
55. Arrangements for relocation of utility company facilities (power poles, vaults, ete.) out of the
roadway or alley shall be the responsibility of the property owner or his agent.
. 56. Provide fire protection facilities as required in writing by Riverside County Fire.
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Planning C:onurllssion
Approved October 18. 2005
AGENDA ITEM N~. '2VZ
PAGE fAr;) OF _ ~
CONDITIONS OF APPROVAL
Page 6 of 10
TENTATIVE TRACT MAP NO. 31593
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57. Provide street lighting and show lighting improvements as part of street improvement plans as
. required by the City Engineer. . . .. .
58. Developer shall annex to the City's Street Lighting and landscaping Maintenance District.
59. Developer shall install blue reflective pavement markers in the street at all fire hydrant locations.
60. Applicant shall submit a traffic control plan showing all traffic control devices for the tract to be
approved prior to fmal map approval. All traffic control devices shall be installed prior to fmal
inspection of public improvements. TIlls includes No Parking and Street Sweeping Signs for streets
within the tract.
(',
61. 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.
62. All utilities except e1e~cal over 12 kv shall be placed underground, as approved by the serving
utility.
63. Apply and obtain a grading permit ~ith 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. H 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. .
64. Provide soils, geology and seismic repon including street design recommendations. Provide final
soils repon showing compliance with recommendations.
65. An A1quis-Priolo study shall be performed on the site to identify any hidden earthquake faults
and! or liquefaction zones present on-site.
66. All grading shall be done under the supervision of a geotechnical engineer and he shall certify all
~Iopes steeper than 2 to 1 for stability and proper erosion control. All manufactured slopes greater
than 30 ft. in height shall be contoured .
67. 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 expon material. Such routes shall be subject to
the review and approval of the City Engineer. .
. 68. Applicant to provide to the City a photographic baseline record of the condition pf 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.
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Planning Commission
Approved October 18, 2005
AGENDA ITE~ NO. '2'2. _
PAGE f:o~ OF\ ~.
CONDITIONS OF APPROVAL
Page 7 of 10
TENTATIVE TRACT MAP NO. 31593
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69. 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.
70. 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".
71. 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. .
72. 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 arid diversion of drainage.
73. All drainage facilities in this tract shall be constructed to Riverside County Flood Control District
Standards.
74. 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.
75. 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. U
76. 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.
77. A drainage acceptance letter will be necessary from the downstream propertY owners for out letting
the proposed stormwater run-off on private property.
78. 'Developer shall be subject to all Master Planned Drainage fees and will receive credit for all Master
Planned Drainage facilities constructed.
79. Provide Tract Phasing Plan for the City Engineer's approval. Bond public improvements for each
Phase as approved by the City Engineer.
80. Up-slope maintenance along right-of-ways shall be maintained by the city's lighting and landscaping
maintenance assessment district or a homeowner's association.
81. Applicant shall comply with all NPDES requirements in effect; including the submittal of a Water
Quality Management Plan (WQMP) as required per the Santa Ana Regional Water Quality Control
Board. .
82. Applicant will be required to'install BMP's using the best available technology to mitigate any urban U
pollutants from entering the watershed.
Planning Commission
Approved October 18, 2005
PiGENDA ITEM NO. Q '/
PACE (~oF~b
CONDITIONS OF APPROVAL
Page 8 of 10
TENTATIVE TRACT MAP NO. 31593
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83. 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:
84. 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.
85. Education guidelines and Best Management Practices (BMP) shall be provided to residents of the
development in the use of herbicides, pesticides, fertiIizers 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.
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86. Applicant shall provide first blush BMP's using'the best available technology that will reduce storm
water pollutants from parking areas and driveway aisles. .
87: Intersection site dist~ce shall meet the design criteria of the CAL 1RANS 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.
88. Intersecting streets on the inside radius of a curve will only be permitted when adequate sight
distance is verified by a registered civil engineer.
89. Local streets shall have sixty (60) ft. right-of-way with forty (40) ft. curb~to-curb. Restricted local
streets (cul-de-sacs) shall have fifty (50) ft. right'{)f-way with thirty-six (36) ft. curb-to-curb and a
three (3) ft. utility easement on each side.
. . .
90. Restricted local interior double- loaded streets shall not have less thana 50 ft. Right-of-way with 36
ft. Curb-to-curb and a 3 ft. utility easement on each side of the street. Single- loaded local streets
shall not have less than a 45 ft. right-of-way with a 3 ft. utility easement and 36 ft. curb-to-curb
91. No residential lot shall front and access shall be restricted on collector streets and so noted on the
final map.
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92. All parcels shall have direct access to public right-of-way or be provided with a minimum 30-foot
ingress and egress easement to public right-of-way by separate instrument or through map
recordation.
Planning Commission
Approved October 18.2005
AGENDA ITEM NO.. '? Q
PAGE tO$ OF"":' ~
CONDITIONS OF APPROVAL
Page 9 of 10
TENTATIVE TRACT MAP NO. 31593
93. Upon demonstration to the City that an adjacent property owner is unable to gain reasonable access
to an adjacent parcel (considering available option along the entire boundary of the parcel), City shall
inform Developer and Developer agrees to take proactive measures to establish adequate access to
accommodate the adjacent parcel. Alternatively, the City may require that Developer offer an
easement for necessaty ingress and egress solely to'address the needs of the adjacent parcel. The
conveyance of any easement pursuant to this condition shall not conflict with designated uses of
property including any and all conservation, open space or mitigation use of property.
u
'. 94. The Developer shall provide access to adjacent properties needing access through this development
by public right-of-way or access easement based on a reasonable accessibility determination to the
satisfaction of the City.
95. If right-of-way is abandoned as part of this development, then adjacent property affected by the
abandonment's must still have access to public maintained right-of-way.
96. The final map shall show the abandonment of dedications of public right-of-way or easements by
appropriate certifications on the map.
97. Developer to provide access to property owners and utility agencies to property to the west of the
tract including during construction,
98. If necessaty, applicant must submit a conditional letter of map revision (CLOMR) to FEMA prior to U
issuance of building permits. A letter of map revision(LOMR) must be approved from FEMA prior
to the 50th certificate of occupancy
99. Applicant shall record CC & R's for the tract prohibiting on-street storage of boats, motor homes,
trailer, 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.
100. 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
all lots subject to the approval of the director of CommunityDevelopment & the City Attorney. The
CC& R's shall enforce standards of building maintenance, participation in landscape maintenance,
prohibition of outside vehicle or material storage.
101. Applicant shall provide a homeowner's association with CC & R's for maintenance of the open
"
space.
102. 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.
103. The large open space lots adjacent to residential lots shall have areas designated as fuel modification
zones for a firebreak to be maintained by a homeowner's association.
u
Planning Commission
Approved October 18.2005
ACEHDA ITnt NO. ~ 2.
PACE~UA.O OF_ ~
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n
CONDITIONS OF APPROVAL
Page 10 of10
TENTATIVE TRACT MAP NO. 31593
104. All open space and slopes except for public parks and schools and flood control district facilities,
outside the public right-d-waywill be owned and maintained by either a home owner's association
or private property owner.
105. Existing access easements over property m~ be addressed to the satisfaction of the easement
owners prior to final map approval. . .
106. 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 ohonnage by certified weigh master tickets.
107. 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. .
108. Applicant shall pay all applicable development fees, including but not all inclusive: TIJMF, MSHCP,
TIF and area drainage fees.
Planning Commission
Approved Onober 18. 2005
AGENDA ITEM No). Q "2-
PACE (O~OF~
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. CITY OF LAKE ELSINORE
REPORT TO CITY COUNCIL
TO:
MAYOR AND CITY COUNCIL
FROM:
ROBERT A. BRADY, CITY MANAGER
DATE:
NOVEMBER 8, 2005
SUBJECT:
EXTENSION OF TIME FOR TENTATIVE PARCEL MAP NO. 30985
APPLICANT
Patti N ahill
PGN
P.O. Box 1006
Murrieta, California 92564-1006
BACKGROUND
At their regular meeting of August 5, 2003, the Planning COnllnission considered and recommended
. approval of Tentative Parcel Map No. 30985 to the City Council for the subdivision of
approximately five (5) acres ofland into three (3) commercial parce\S;The proposed parcels were as
fol1ows:Parcel No.1 will be 2.59 acres (1.78 ac.net), Parcel No.2 will be 1.58 acres (1.06 net) and
Parcel.No. 3 will be .96 acres (.76 ac.net). On August 26,2003 the City Council approved the
referenced Tentative Parcel Map.
In a letter dated August 2, 2005 the Planning Department received a request from the property owner
for an extension of time regarding Tentative Parcel Map 30985.. The property owner states that the
extension oftime is needed so the engineer can complete the conditions ofapproval. Since August
26, 2003, the engineer has been diligently pursuing the completion of the required conditions of
approval, both for the City of Lake Elsinore and the California Department of Transportation
(Caltrans), necess~ry forthe recordatiop. of the map~ ..
DISCUSSION
Pursuant to the California Subdivision Map Act Section 66452.6 and Section 16.24.160 ofthe Lake
Elsinore Municipal Code (LEMC), conditional1y approved tentative parcel maps shall expire within
24 months of City Council approval unless a final map has been filed with the County Recorder, or
the land divider has applied for an extension for a period or periods not exceeding thirty-six (36)
months.
According to Section l6.24.l60.C of the Lake Elsinore Municipal Code, the City Council may
require that the land division conform to the applicable latest requirements in effect at the time an
extension is granted. The fol1owing Conditions of Approval have been revised or added as a result of
"0 ~ '7 -
ACENDAITEM.. '- ~I
PACE_ \ OF--"4-
REPORTTO CITY COUNCIL
NOVEMBER 8, 2005
Page 2 of3
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the subject Extension of Time: No's 56 through 64. These revisions include revisions and/or
additions to the Conditions of Approval by the Engineering Division and the Department of
Administrative Services.
FINDINGS
1. The proposed Extension of Time for the subdivision known as Tentative Parcel Map 30985
(project) is consistent with the General Plan. The proposed subdivision is compatible with
the objectives, policies, general land uses and programs specified in the General Plan.
The proposed subdivision of land, together with the provisions for its design and
improvement is consistent with the General Plan. The proposed subdivision is compatible
with the objectives, policies, general land uses and programs specified in the General Plan.
2. The effects this project is likely,to have upon the housing needs of the region, the public
service requirements of its residents, and the available fiscal and environmental resources
have been considered and balanced.
. This project has been carefully considered and balanced in regards to the effects it will have
upon the housing needs of the region, the public service requirements of its residents, and the U
available fisc;al and environmental resources have been considered and balanced.
. 3. . Subject to the attached conditions of approval, the proposed project is not anticipated to
result in any significant environmental impact.
The project has been adequately conditioned by all applicable departments and agencies and
will not thereft;re result in any significant environmental impacts. .
RECOMMENDATION
It is recommended that the City Council adopt Resolution No. 2005- _ approving the Extension of
Time for Tentative Parcel Map No. 30985 located adjacent to Camino Del Norte, appioximateiy II..
mile north of the intersection of Main Street and Camino Del Norte, Assessor's Parcel No's 3,77-
200-029,030,031, & 033, based on the Findings, Exhibits and attached revised Conditions of
Approval.
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lPAGE:.---.2 'OF__c:~ .
REPORT TO CITY COUNCIL
("\ NOVEMBERS, 2005
Page 3 of 3
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PREPARED BY:
Justin Carlson, Assistant Planner
APPROVED FOR.
AGENDA BY:
ATTACHMENTS:
I. Resolution No. 2005" _ approving an Extension of Time for Tentative Parcel Map
No. 30985.
2. Revised Conditions of Approval.
3. City Council report dated August 26,2003.
4. Reduction of Tentative Parcel Map No. 30985.
5. Full-sized Exhibits of Tentative Parcel Map No. 30985
U:~carlson\TPM 30985 Time Exteosion\CC Report Extension of TimeT PM 31051 10-] ]-05.doc
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RESOLUTION NO. 2005-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF LAKE ELSINORE, CALIFORNIA, APPROVING AN
EXTENSION OF TIME FOR TENTATIVE PARCEL MAP
NO. 30985 LOCATED ADJACENT TO CAMINO DEL
NORTE, NORTH OF MAIN STREET;
WHEREAS, Patti Nahill, PGN, has initiated proceedings for an Extension of Time for
Tentative Parcel Map 30985; and
(
WHEREAS, the City Council of the City of Lake Elsinore has been delegated with the
responsibility of approving Extensions of Time for Tentative Parcel Maps; and
WHEREAS, the City Council of the City of Lake Elsinore certified a categorical
exemption pursuant to Section 15314 (Minor Land Divisions) of the California Environmental
Quality Act (CEQA) for Tentative Parcel Map No. 30985, and making a determination that the
document was adequate and prepared in accordance with the requirements of the California
Environmental Quality Act (CEQA); .
(\
NOW THEREFORE, the City Council of the City of Lake Elsinore DOES HEREBY
RESOLVE as follows:
SECTION 1. The City Council has considered the request for the Extension of Time for
Tentative Parcel Map 30985. The City Council finds and determines that in accordance with
State Subdivision Map Act and Planning Law, and the City of Lake Elsinore's General Plan and
the Lake Elsinore Municipal Code (LEMC) that approval of an Extension of Time for. Tentative
Parcel Map 30985 is consistent with all of the required procedures, policies, guidelines and
provisions based on the following findings:
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I. The proposed Extension of Time for the subdivision known as Tentative Parcel Map
30985 (project) is consistent with the General Plan. The proposed subdivision is
compatible with the objectives, policies, general land uses and programs specified in the
General Plan.
The project as designed assists in achieving the development of a well-balanced and
functional mix of residential, commercial, industrial, open space, recreational and
institutional land uses by encouraging the development of commercial land uses that
strengthen the City's economic base and offer a range of enterprises that serve the needs
,
of the residents and visitors.
2. The effects this project is likely to have upon the housing needs of the region, the public
service requirements of its residents, and the available fiscal and environmental resources
have been considered and balanced.
AGENDA ITEM NO.
PACE 5
).~
OF~
CITY COUNClLRESOLUfION FOR
TENTATIVE PARCEL MAP NO. 30985
Page 2 of3
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This project has been carefully considered and balanced in regards to the effects it will .
have upon the housing needs of the region, tM public service requirements of its
residents, and the available fiscal and environmental resources have been considered
and balanced.
3. Subject to the attached conditions of approval, the proposed project is not anticipated to
result in any significant environmental impact.
The project has been adequately conditioned by all applicable departments and agencies
and will not therefore result in any significant environmental impacts.
PURSUANT TO THE ABOVE FINDINGS, IT IS RESOLVED by the City Council of the
City of Lake Elsinore, California, that the request for an Extension of for Tentative Parcel Map
No. 30985 be approved. .
PASSED, APPROVED AND ADOPTED this 8th day of November 2005, by the
following vote:
Robert Magee, Mayor
City of Lake Elsinore
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JWENoA ITEM liO.___ g. 3
PACE I P OF-21-.
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OTY COUNOL RESOLUTION FOR
TENT ATIVE PARCEL MAP NO. 30985
Page 3 00 .
ATTEST:
Frederick Ray, City Clerk
APPROVED AS TO FORM:
Barbara Zeid Leibold, City Attorney
City of Lake Elsinore
(SEAL)
r{(. :>'::_2..
f'N,'S=f~~:~~
CONDITIONS OF APPROVAL FOR
TENTATIVE P MCEL MAP NO. 30985
APN 377-200-029. 030.031. 8c033
U
PLANNING DIVISION
(N ae: Fees listed in the Cooditims if A Pf7/TllDl are the best estimttB amilaHe at the t'im! if apjJ1VUtl. The exaa
Ire arrrnnts uill be 'l1':!ieoo1 at the t'im! if buildingpernit issuarce am rmy be raised)
1. Tentative Parcel Map No. 30985 will expire two (2) years from date of approval 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 Gty Council in accordance with the Subdivision
Map Act. Tentati:re ParudMap No 30985 uill expireanNlJ1EI'Yb:r 8,2007.
2, Tentative Parcel Map No. 30985 shall comply with the State of California Subdivision Map Act
and shall comply with all applicable requirements of the Lake Elsinore Municipal Code, Tide
16 unless modified by approved Conditions of Approval.
3, The applicant shall defend (with counsel acceptable to the Gt)?, indemnify, and hold harmless
the City, its Official, Officers, Employees, and Agents from any claim, action, or proceeding
against the Gty, its Official, Officers, Employees, or Agents to anach, set aside, void, or annul
an approval of the City, its advisory agencies, appeal boards, or legislative body concerning
Tentative Parcel Map No. 30985, which action is bought within the time period provided for in U,'
California Government Code Sections 65009 and/or 66499.37, and Public Resources Code
Section 21167. The City will prompdy notify the Applicant of any such claim, action, or
proceeding against the City and will cooperate fully with the defense. If the Gty fails to
prompdy notify the Applicant of any such claim, or proceeding, the Applicant shall not,
thereafter, be responsible to defend, indemnify, or hold harmless the City.
4. A precise survey with closures for boundaries and all lots shall be provided, per Gty
Ordinance.
5. The City's Noise Ordinance must be met during all site preparation activity.
6. The applicant shall bond for all public improvements and grading for subject development as
required by the Ciry Engineer. A) Bonding shall be done by phases and not by final map(s) on
grading. B) Bonding shall be done by final map(s) for all other improvements.
7. Pay all applicable fees including park fees as stated in the development agreement prior to
issuance of building pennits.
8. Prior to final map approval of Tentative Parcel Map No. 30985, the improvements specified
herein and approved by the Planning Conunission and the Gty Council shall be installed, or
the bonds and agreement for said improvements, shall be submitted to the Gty for approval by
the Gty Engineer, and all other stated conditions shall be complied with.
P~el~7 U
ACENDA ITEM NO.
PAGE <['
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OF~
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CONDITIONS OF APPROVAL FOR
TENTATIVE PARCEL MAP NO. 30985
APN 377-200-029.030.031. &033
All of the improvements shall be designed by developer's Gvil. Engineer to the specifications
of the City of Lake Elsinore.
10. Applicant must meet all requirements of Elsinore Valley Municipal Water District (EVMWD).
9.
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. The developer shall submit plans to Southern California Edison for,a layout of the street
lighting system The cost of street lighting, installation, as well as energy charges shall be the
responsibility of the developer and/or association. Said plans shall be approved by the City and
shall be installed in accordance with the City standards.
13. Meet all requirements of the providing electric utility company.
14. Meet all requirements of the providing gas utility company.'
'15. Meet all requirements of the providing telephone utility company.
16. All trailers used during construction, mailboxes and signage shall be subject to Planning
Division review and approval prior to installation.
17. Any alterations to the topography, ground surface, or any other site preparation activity will
require appropriate Grading City permits. A Geological Soils Report with associated
recommendations will be required for grading permit approval, and all grading must meet the
City's, Grading Ordinance, subject to the approval of the City Engineer and the Planning
.Division. Analysis of impacts if fills and cuts greater than sixty-feet (60') shall be provided.
Interim and permanent erosion control measures are required. The applicant shall bond 100%
for material and labor for one (1) year for erosion control landscaping at the time the site is
rough graded.
18. All development associated with this map requires separate Design Review approval.
19. Prior to issuance of any grading permit or building permit, the subdivider shall sign and
complete an "Acknowledgement of Conditions" and shall return the executed original to the
Community Development Department.
20. The applicant shall pay applicable fees and obtain proper clearance from the Lake Elsinore
Unified School District (LEUSD) prior to issuance of building permits.
(\ Page2of7
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AGENDA ITEM NO. <7.1-
0\ OF~
pI\GE.-:J--"
CONDITIONS OF APPROVAL FOR
TENTATIVE PARCEL MAP NO. 30985
APN 377.200.029.030.031. &033
u
ENGINEERING DIVISION
21. All Public Works requirements shall be complied with as a condition of development as
specified in the Lake Elsinore Municipal Oxle (LEMq prior to final map approval.
22. Pay all Gtpital Improvement and Plan Clieck 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. Dedicate an approximate 24' to 56' ft. strip of land along the frontage of Gtmino Del Notte
for a 100 ft.right.of.way and show on the parcel map. (addul by the P!a~ CHmissWn 8.5.03).
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).
26. Street improvement plans and specifications shall be prepared bya Calif. Registered Civil
Engineer. Improvements shall be designed and constructed to Riverside County Road U
Department Standards, latest edition, and CityCodes (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. Applicant shall obtain any necessary Caltrans permits and meet all Calrrans requirements.
29. 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).
30. All compaction reports, grade certifications, monument certifications (with tie notes delineated
on 8 ~" x 11" Mylar) shall be submitted to the Engineering Division before final inspection of
public works improvements will be scheduled and approved. '
31. Applicant shall obtain all necessary off-site easements for off-site grading from the adjacent
property owners prior to final map approval.
32. Arrangements for relocation of utility company facilities (power .poles, vaults, etc.) out of the
roadway or alleyshall be the responsibility of the property owner or his agent.
33. Provide fire protection facilities as required in writing by Riverside County Fire.
Page3'of 7
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AGENDA ITEM NO. '
PACE i ()
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. CONDITIONS OF APPROVAL FOR
TENTATIVE PARCEL MAP NO. 30985
APN 377-200-029.030.031. &033
34. Provide street lighting and show lighting improvements as part of street improvement plans as
required by the Oty Engineer.
,,--\-..
35. Developer shall install blue reflective pavement markers in the street at all fire hydrant
locations.
36. 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.
37. All improvement plans and tract maps shall be digitized. At Certificate of Occupancy applicant
shall submit tapes and! or discs which are compatible with Oty's ARC Info/GIS or developer
to pay $300 per sheet for Oty digitizing. .
38. All utilities except electrical over 12 kv shall be placed underground, as approved by the
serving utility.
39. Apply and obtain a grading permit with appropriate security prior to building permit issuance.
A grading plan signed and stamped by a Calif. Registered Ovil Engineer shall be required and
the Oty must approve the plan prior to grading.
40. Provide soils, geology and seismic. report including street design recommendations. Provide
final soils report showing compliance with recommendations.
41. An Alquis- Priolo study shall be performed on the site to identify any hidden earthquake faults .
and! or liquefaction zones present on-site.
42. Individual lot drainage shall be conveyed to Camino Del Norte or accepted by adjacent
property owners by a letter of drainage acceptance or conveyed to a drainage easement.
43. 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".
44. All natural drainage traversing site shall be conveyed through the site, or shall be collected and
conveyed bya method approved by the GtyEngineer.
45. Submit Hydrology and Hydraulic Reports for review and approval by Gty 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.
Page 4 of 7
.- "''''''0' "OP" ,',0 . ;;l."7
t"'\,J~~'1i .M~I...W' '. .
PACE....lL-OF ~(
CONDITIONS OF APPROVAL FOR
TENT ATIVE PARCEL MAP NO. 30985
APN 377-200;029. 030. 031. Be033
u
46. All drainage facilities in this tract shall be consttucted to Riverside County Flood Control
District Standards.
47. Storm drain inlet facilities shall be appropriately stenciled to prevent illegally dwnpingin the
drain system, the wording and stencil shall be approved by the Cty Engineer.
48. 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. .
49. 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.
50. A drainage acceptance letter will be necessaty from the downstream property owners for
outletting the proposed stormwater run-off on private property.
51. Developer shall be subject to all Master Planned Drainage fees and will receive credit for all
Master Planned Drainage facilities constructed.
52. Applicant shall obtain approval from Santa ~Ana Regional Water Quality Control Board for U
their storm water pollution prevention plan including approval of erosion control for the
grading plan prior to. issuance of grading pennits. The applicant shall provide a SWPPP for.
post construction which describes BMP's that will be implemented for the development and
including maintenance responsibilities. .
53.- 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 meet the goals of the BMP in Supplement" A" in the Riverside County
NPDES Drainage Area Management Plan.
54. . In accordance with the Ory's Franchise Agreement for waste diSposal Be rec}'l:ling, 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. .
Page 5 of 7
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AOENOA ITEM NO. f).. "3
PACE~OF~
("'1
('
('
CONDITIONS OF APPROVAL FOR
TENTATIVE PARCEL MAP NO. 30985
APN .377-200-029. 030. 031. &033
mE FOLLOWING CONDI110NS OF APPROVAL ARE PARTOF mE EXTENSION OF
11ME, G1Y CXJUNGL HEARING, NOVEMBER 8, 2005:
55. Existing Conditio~s of Approval are in effect with the following revisions and additions.
ENGINEERING DIVISION
56. Existing Conditions of Approval are continuously in effect with the following revisions
and/or additions.
57. Prior to the issuance of building permits: Pay all Capital hnprovement and Plan Check
fees (LEMC 16.34, Resolution 85-2(>), mitigation fees, area drainage fee, traffic impact fee
(TIP), 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.
58. Prior to the issuance of building permits: Should this project lie within any proposed
Community Facilities District (CFD), the developer shall agree to participate and join the
CFD.
59. Prior to approval of final map: Dedicate additional right-of-way for Camino Del None along
the project frontage such that the ultimate city right-of-way from the state (CaItrans) right-of-
way to property line is 100 feet.
60. Prior to approval of final map: Elsinore and Sandf~rd Streets as shown on the map shall be
vacated subject to the latest provisions of Public Streets and Highways Code and Service
Easements Law.
DEPARTMENT OF ADMINISTRATIVE SERVICES
61. Annex into CPO 2003-1: Prior to approval of the Final Map, Parcel Map, Site Development
Plan, or Special Use Permit (as applicable), the applicant shall annex into Community Facilities
District 2003-1 to offset the annual negative fiscal impacts of the project on public safety
operations and maintenance issues in the Gty.
62. Annex into LLMD No.1: Prior to approval of the Final Map, Parcel Map, Site Development
Plan, or Special Use Permit (as applicable), the applicant shall annex into 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 Gty and for street lights in the
public right-of-way for which the Gtywill pay for electricity and a maintenance fee to
Southern California Edison.
Page 6 of 7
ACENDA ITEM NO. ~ ?
PAGE ,." OF-4-
CONDITIONS OF APPROVAL FOR
TENTATIVE PARCEL MAP NO. 30985
APN 377-200-029.030.031. &033
u
63. Fire Station Inwact Fee and Other Inwa~t Fees: Upon completion of the Fire Station
Impact Study and other fee studies, Developer shall pay impact fee.
64. CFD for Park, Parkway. Open Space and Storm Drain Maintenance: Prior to approval of
the Final Map, Parcel Map, Site Development Plan, or Special Use Permit (as applicable), the
applicant shall annex into the Mello- Roos Community Facilities District to fund the on-going
operation and maintenance of the new parks, parkways, open space and public storm drains
consttucted within the development and federal NPDES requirements to offset the annual
negative fiscal impacts of the project.. .
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Page 7 of 7
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AOENDA ITEM NO. l ~
PACE '\ L-\ OF ~
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CITY OF LAKE ELSINORE
REPORT TO CITY COUNCIL AND REDEVELOPMENT AGENCY
TO:
HONORABLE MAYOR, MEMBERS OF THE CITY COUNCIL, AND
REDEVELOPMENT AGENCY
FROM:
RICHARD J. W A TENP AUGH, CITY MANAGER
DATE:
CITY COUNCIL AND REDEVELOPMENT AGENCY MEETING OF AUGUST
26,2003
SUBJECT: TENTATIVE PARCEL MAP NO. 30985 "MARKHAM DEVELOPMENT"
APPLICANT
Markham Development Management Group, Inc.
41635 Enterprise Circle, Ste., B
Temecula, CA 92590
REQUEST
(\
The subdivision of approximately 5-acres of vacant land into 3 commercial parcels pursuant to the
requirements of Section 17.48 (General Commercial Zoning District) and Title 16 of the Lake
Elsinore Municipal Code (LEMC). The subject site is located along Camino Del Norte
approximately Y. mile north of the intersection of Main Street and Camino Del Norte. APN 377-
200-030,031, & 033. .
BACKGROUND
At its regular meeting of August 5, 2003, the Planning Commission adopted Resolution No. 2003-58
recommending approval of Tentative Parcel Map No. 30985 to the City Council. (Staff Report,
Resolution, Minutes, and Exhibit enclosed).
PROJECT DESCRIPTION
The proposed parcel map will subdivide the aforementioned approximately 5 acres ofvacaut land
into 3 commercial parcels. The proposed parcels are as follows: Parcel No. I will be 2.59 acres,
(1.78 ac. net), Parcel No.2 will be 1.58 acres (1.06 ac. net) and Parcel No.3 will be .96 acres (.76 ac.
net)
DISCUSSION .
Items of discussion at the Planning Commission meeting were relatively minor. Clarification of
Condition of Approval No. 24 was requested. This condition deals with required street dedication.
Condition of Approval No. 24 was amended to include "dedicate an approximately 24' to 56' strip of
(\ land along the frontage ofComino Del Norte for a 100 ft. right-of-way and show on the parcel map".
cr.'.',"" l..~" ..W ")?
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PAGE_l:LOF-4-
REPORT TO THE CITY COUNCIL
AUGUST 26, 2003
PAGE 2
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SUBJECT: TENTATIVE PARCEL MAP NO. 30985, MARKHAM DEVELOPMENT
ANALYSIS
The proposed subdivision has been found to be consistent with the C-2 Zoning development
standards and the General Commercial Land Use Designation.
ENVIRONMENTAL
Pursuant to the California Environmental Quality Act (CEQA), this project has been deemed exempt
pursuant to Section 15332. This section exempts ."Infill" projects of 5 acres of less. No further
environmental clearance is necessary.
RECOMMENDATION
It is recommended that the City Council approve Tentative Parcel Map No. 30985 based on the
following Findings, Exhibit "A" and subject to the attached revised Conditions of Approval.
FINDINGS
1. The proposed subdivision, together with the provisions for its design and improvement, is . U
consistent with the General Plan. The proposed subdivision is compatible with the .
objectives, policies, general land uses and programs specified in the General Plan.
2. The effects this project is likely to have upon the housing needs of the region, the public
service requirements of its residents and the available fiscal and environmental resources.
have been considered and balanced. .
3.
REVIEWED BY:
APPROVED FOR
AGENDA LISTING:
City Manager's Office
U
ACENDA ITEM NO.
PACE \ V
;:).~
OF .1::.!.-
CONDITIONS OF APPROVAL FOR
TENTATIVE PARCEL MAP NO. 30985
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PLANNING DIVISION
L Tentative Parcel Map No. 30985 will expire two (2) years from date of approval 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.
2. Tentative Parcel Map No. 30985 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. The applicant shall defend (with counsel acceptable to the City), indenmify, 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 TPM No. 30985, 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, indenmify, or hold hannless the City.
(\
4. A precise survey. with closures for boundaries. and all lots shall be provided, per City
Ordinance. .
. .
5. The City's Noise Ordinance must be met during afl site preparation activity.
. . - ,
6. Applicant shall bond for all public improvements and grading for subject development as
required by the City Engineer. a) Bonding shall be done by phases and not by final maps(s)
on grading. b)Bonding shall be done by final map(s) for all other improvements.
7. Pay all applicable fees including park fees as stated in the development agreement prior to
issuance of building. permits:
8. Prior to final map approval of Tentative Parcel Map No. 30985, the improvements specified
herein and approved by the Plarming Commission and the City Council shall be installed, or
the bonds and agreement for said improvements, shali be submitted to the City for approval
by the City Engineer, and all other stated conditions shall be complied with.
9. All of the improvements shall be designed by developer's Civil Engineer to the specifications
of the City of Lake Elsinore.
to. Applicant must meet all requirements of Elsinore Valley Municipal Water District
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ACENDA ITEM NO. R
PACE-L2-0F-2:L
CONDITIONS OF APPROVAL FOR
TENTATIVE PARCEL MAP NO. 30985. CONT.
u
(EVMWD).
11. The applicant shall provide connection to public sewer for each lot within the subdivision.
No service laterals shall cross adjacent property lines and shall be delineated ori engineering
sewer plans and profiles for submittal to the EVMWD.
12. The developer shall submit plans to Southern California Edison for a layout of the street
lighting system. The cost of street lighting, installation as well as energy charges shall be the
responsibility of the developer and/or. the association. Said plans shall be approved by the
City and shall be installed in accordance with the City Standards.
13: Meet all requirements of the providing electric utility company.
14. Meet all requirements of the providing gas utility company.
15. Meet all requirements o'f the providing telephone utility company.
16. All trailers used during construction, mailboxes and signage shall be subject to Planning
Division review and approval prior to installation.
17. Any alterations to the topography, ground surface, or any other site preparation activity will
.require appropriate Grading City permits. A Geologic Soils Report with associated U
recoriunendations will be required for grading permit approval, and all grading must meet the
City's Grading Ordinance, subject to the approval of the City Engineer and the Planning
Division. Analysis of impacts of fills and cuts greater than sixty-feet (60') shall be provided.
Interim and permanent erosion control measures are required. The applicant shall bond
100% for material and labor for one (1) year for erosion control landscaping at the time the
. site is rough graded.
18. All development associated with this map requires separate Design Review approval.
.19. Prior to issnance of any grading permit or building permit, subdivider shall sign and
complete an "Acknowledgment of Conditions" and shall return the executed original to the
Community Development Department.
20. The applicant shall pay applicable fees and obtain proper clearance from the Lake Elsinore
Unified School District (LEUSD) prior to issuance of building permits.
ENGINEERING DIVISION
.
21. All Public Works requirements shall be complied with as a condition of development as
rrtl~;i ~~G..__~~~
pr\OE~_OF~"
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Page 2 of5
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CONDITIONS OF APPROV AI, FOR
TENTATIVE PARCEL MAP NO. 30985, CONT.
specified in the Lake Elsinore Municipal Code (LEMC) prior to final map approval.
22. Pay all Capital hnprovement and Plan Check fees (LEMC 16.34, Resolution 85-26). The
traffic mitigation fee is $0.71 per sq. ft. of building and the drainage fee is $42,415 (Wasson
East District).
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. Dedicate an approximate 24' to 56' ft. strip of land along the frontage of Camino Del Norte
for a 100 ft. right-of-way and show on the parcel map. (added by Planning Commission)
25. Construct all publit works improve~ents 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).
26. Street improvement plans and specifications shall be prepared by a Calif. Registered Civil
Engineer. hnprovementsshall 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. Applicant shall obtain any necessary Ca1trans permits and meet all Caltrans requirements.
29. 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).
30. All compaction reports, grade certifications, monument certifications (with tie notes
delineated on 8 Y2' x 11" Mylar) shall be submitted to .the Engineering Division before final
inspection of public works improvements will be scheduled and approved.
. 31. Applicant shall obtain all necessary off~site easements for off-site grading from the adjacent
property owners prior to final map approval.
32. Arrangements for relocation of utility company facilities (power poles, vaults, etc.) out of the
roadway shall be the responsibility ofthe property owner or his agent.
33. Provide fire protection facilities as required i~ writing by Riverside County Fire.
Page 3 of5
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<21..
,-,,,
CONDITIONS OF APPROVAL FOR
TENTATIVE PARCEL MAP NO. 30985. CONT.
u
34. Provide street lighting and show lighting improvements as part of street improvement plans
as required by the City Engineer.
35. Developer shall install blue reflective pavement markers in the street at all fire hydrant
locations.
36. 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.
37. 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 ARCInfo/GIS or
developer to pay $3'00 per sheet for City digitizing.
38. All utilities except electrical over 12 kv shall be placed underground, as approved by the
serving utility.
39. 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 and the city engineer must approve the plan prior to grading permit.
40. Provide soils, geology and seismic report including street design recommendations. Provide
final soils report showing compliance with recommendations.
u
41. An Alquis-Priolo study shall be performed on the site to identify any hidden earthquake
faults and/or liquefaction zones present on-site. .
42. Individual lot drainage shall be conveyed to Camino Del Norte or accepted by adjacent
property owners by a letter of drainage acceptance or conveyed to a drainage easement.
43; 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".
44. 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.
45. 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.
Page 4 of5
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AGENDA ITEM NO. :f- ,
PACE :w OF 9(
o
(\
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CONDITIONS OF APPROVAL FOR
TENTATIVE PARCEL MAP NO. 30985. CONT.
,
46. All drainage facilities in this tract shall be constructed to Riverside County Flood Control
District Standards.
47. 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.
48. 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. .
49. 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 are
exceeded, drainage facilities' should be installed.
50. A drainage acceptance letter will be necessary from the downstream property owners for out
letting the proposed stormwater run-off on private property.
51. Developer shall be subject to all Master Planned Drainage fees and will receive credit for all
Master Planned Drainage facilities constructed.
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.
53. 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 "AU in the
Riverside County NPDES Drainage Area Management Plan.
54. 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. .
Page 5 of 5
--,. w"' (). ..,
f~G~f':DA ~ ~ l:1'i~ ~".v.
"'A.(,E__a~__Or: ~..2:.l-
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(1
CITY OF LAKE ELSINORE
REPORT TO CITY COUNCIL
TO:
MAYOR AND CITY COUNCIL
FROM:
DATE:
ROBERT A. BRADY, CITY MANAGER
NOVEMBER 8, 2005
SUBJECT:
PUBLIC HEARING - FORMATION OF CFD 2004-2
(VISCA YA); CALLA SPECIAL ELECTION; CANVAS .
ELECTION RESULTS; AUTHORIZING LEVY OF SPECIAL
TAXES
BACKGROUND
On September 27,2005, the City adopted a resolution of intention toform
Community Facilities District (CFD) 2004-2 (Viscaya) and aresolution of intention
n to incur bonded indebtedness to finance the facilities.
(\
DISCUSSION
The developer plans to build 168 single family homes. Attached is the CFDreport
prepared by Harris and Associates.
Special Tax
The average residential special tax is estimated at $2,301. The annual CFD tax
amount, when combined with all other property taxes applicable to the project, is
estimated to be approximately 1.85%, which is within the 2% City CFD guidelines.
Facilities
. .The proposed facilities list is attached. The list totals $4,407,818. The list contains
City facilities of $330,000, City fees of$I,117,650, MSHCP fees of $277,368 and
TUMF fees of$ 1,2 I 7,664. The list also includes $1,807,512 ofEVMWD impact
fees and improvements.
AGENDA ITEM NO.
PAGE J
d-~
OF 6/
_._~--_._---~---.,
I
I
REPORT TO CITY COUNCIL
NOVEMBER 8, 2005
PAGE 2
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Bond Issue
In order to finance the facilities it is necessary to incur bonded indebtedness. The
not to exceed amount is $7;000,000.
FISCAL IMPACT
The administrative cost to the City will be paid by the $80,000 deposit made by the
developer. ~
Repayment ofthe 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 rate
and method of apportionment.
The City will, however, be faced with a long-term obligation going forward to
maintain the City public facilities constructed as part of the development. U
RECOMMENDATION
This is an advertised Public Hearing. The following is recommended to the City
Council:
I. Open the Public Hearing and take testimony
2. Adopt Resolution No. 2005 - approving the formation ofthe District
3. Adopt Resolution No. 2005 -'- to incur bonded indebtedness and calling
a special election
4. Adopt Resolution No. 2005 - ordering canvassing of the election
results
. 5. Conduct first reading of the Ordinance No. authorizing the. levy of
special tax.
ACENDA ITEM NO.
PACE ;;Z
d-L\
OF b/
u
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REPORT TO CITY COUNCIL
NOVEMBER 8, 2005
PAGE 3 dO
PREPARED BY: .~~~.
MATT N. PRESSEY
DIRECTOR OF ADMINISTRATIVE SERVICES
APPROVED FOR
AGENDA BY:
J-L\
AGENDA ITEM NO. /
PAGE 3. OF b.
City of lake Elsinore
CFD No. 2004-2 (Viscaya)
Exhibit "An
November 1, 2005
PageA-1
Boundary Map
PROPOSED BOUNDARY OF
COMMUNITY FACILITIES DISTRICT No. 2004-2
OF THE CITY OF LAKE ELSINORE
(\t1SCAYA)
COUNTY OF RIVERSIDE.
STATE OF CAUFORNIA
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Q:\ELSINO~CFD 2004.2 Viscaya (Corman Leigh)\report\CFD Report 2004-2 (Viscaya),doc
ACiENOA ITEM NO.
PACE 'I
- ----r
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u
.U
9-Y
OF .6/
Community
. Facilities District
Report
for the
City of Lake Elsinore
Community Facilities District
No. 2004-2 (Viscaya)
Prepared by:
= Harris & Associates
November 1, 2005
ACENDA ITEM NO. tt.\
PACE 5" OF 6/
City of lake Elsinore
CFD No. 2004-2 (Viscaya)
November 1, 2005
COMMUNITY FACILITITES DISTRICT REPORT
Table of Contents
Page
I. Introduction .....................;.......................................~.................. 1
II. Project Description .......................................................................2
III. Description of Facilities ............................................................. 3
IV. Cost Estimate..........................................................~................... 4
V. Bonded Indebtedness ~nd Incidental Expenses ......................... 5
VI. Rate & Method of Apportionment of the Special Tax.............,. 6
VII. Boundaries of CFD No. 2004-2 ................................................. 9
VIII. General Terms and Conditions................................................. 10
IX. Certification.............................................................................. 11
Exhibit A - Boundary Map
Exhibit B - Rate and Method of Apportionment
Exhibit C - Property Owner List
i.)
Exhibit D - Effective Tax Rate
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City of lake Elsinore
CFD No. 2004-2 (Viscaya)
COMMUNITY FACILITIES DISTRICT REPORT
November 1, 2005
Page 1
. I. Introduction
WHEREAS, the City Council of the City of Lake Elslnore.(hereinafter referred to as the "Council"),
pursuant to the provisions of the Mello-Roos Community Facilities Act of 1982, being Chapter 2.5,
Part 1, Division 2, Title 5 of the Government Code of the State of California (hereinafter referred to
as the "Act") did establish its intentions to form a community facilities district, consisting of the
territory described in Exhibit A, and did expressly order the filing of a written "Report" with the
Board for the proposed community facilities district. This community facilities district shall
hereinafter be referred to as Community Facilities District No. 2004-2 of the City of Lake Elsinore
(Viscaya) (hereinafter referred to as CFD No. 2004-2); and
WHEREAS, the Resolution of Intention of the City Council of the City of Lake Elsinore to establish
Community Facilities District No. 2004-2 of the City of Lake Elsinore (Viscaya), to authorize the
levy of a Special Tax to pay the costs of acquiring, constructing, or maintaining certain facilities and
expenses of CFD No. 2004-2 and to pay debt service on bonded indebtedness, did direct that said
Report generally contain the following:
a. A brief description of the public facilities, by type, which will be required to adequately meet the
needs of CFD No. 2004-2; and
b. An estimate of the cost of providing those public facilities, including the cost of environmental
evaluations of such facilities, and an estimate of the fair and reasonable cost of any incidental
expenses to be incurred.
NOW, THEREFORE, 1, Dennis A. Anderson, authorized representative of Harris & Associates,
pursuant to the provisions of the Act, do hereby submit the following report.
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AGENDA ITEM NO.
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City of Lake Elsinore
CFD No. 2004-2 (Viscaya)
COMMUNITY. FACILITIES DISTRICT REPORT
November 1, 2005
Page 2
II. Project Description
Pursuant to land use entitlements approved by the City of Lake Elsinore (the "City") and Corman
Leigh Tozai Lakeshore (the "Developer"), the Developer plans to construct approximately 168
single-family detached dwelling units, known as Viscaya. The City has proposed to form one
community facilities district for the purpose of financing certain infrastructure and public facilities
and maintenance for the benefit of V iscaya.
CFD No. 2004-2 encompasses approximately 25.18 gross acres ofland. Of this acreage, 15.6 acres
are expected to be developed for residential uses.
CFD No. 2004-2 will be formed to finance the acquisition and/or constrUction of streets, streetscape,
City fees, and fees of the Elsinore Valley Municipal Water District. See Section III for a list of
faCilities to be acquired and maintenance services to be funded. .
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City of lake Elsinore
CFD No. 2004-2 (Viscaya)
November 1, 2005
Page 3
COMMUNITY FACiliTIES DISTRICT REPORT
III. Description of Facilities & Services
Facilities
A community facilities district may provide. for the purchase, construction, expansion or
rehabilitation of any real or other tangible property wit!). an estimated useful life of five (5) years or
longer which is necessary to meet increased demands placed upon local agencies as a result of
development occurring within a community facilities district. In addition, a <;ommunity facilities
district may provide for the on-going costs for services and infrastructure maintenance for police,
fire, parks, open space, parkways and storm drain facilities, as long as those services are in addition
to services already received by the property within the district.
The facilities described in the Report are all facilities which the City is authorized, pursuant to an
agreement meeting the requirements of Section 53316.2 of the Act or otherwise (the "Joint
Community Facilities Agreement") to own, construct, or finance, and which are required to
adequately meet the needs of CFD No. 2004-2. The actual facilities described herein are those
currently expected to be required to adequately meet, in part, the needs ofCFD No. 2004-2. Because
the actual needs of CFD No. 2004-2 arising as development progresses therein may differ from those
currently anticipated, the City reserves the right to modifY the actual facilities proposed herein to the
extent the City deems necessary, in its sole discretion, to meet those needs.
The proposed facilities for CFD No. 2004-2 include all or a portion of design, construction; indirect
costs and administration relating to the following improvements associated with Tract Map 32008:
1. Traffic Signal Improvements
2. Lakeshore Drive Improvements
CFD No. 2004-2 will also be authorized to finance City capital improvement fees imposed pursuant
to City fee programs and fees of the Elsinore Valley Municipal Water District.
In addition to the improvements above, the CFD is anticipated to cover the on-going costs for
maintenance of the public parks, open space and storm drain improvements.
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City of lake Elsinore
CFD No. 2004-2 (Viscaya)
November 1, 2005
Page 4
COMMUNITY FACILITIES DISTRICT REPORT
IV. Cost Estimate
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The cost estimate for the facilities described in Section III is set forth below. The. actual facilities to
be financed will ultimately be determined. in accordance with the Funding, Construction and
Acquisition Agreement between the City and Developer.
Community Facilities District No. 2004-2
(Viscaya)
Estimated Facilities Costs
Facilities Cost Estimate
Traffic Signal Improvements $ 150,000
Lakeshore Drive Improvements $ 150,000
Construction Contingency 10% $ 30,000
City Impact Fees $ 2,565;306
Library Fee .$ 25,200
City Fire Protection Fee $ 25,200
Master Plan of Drainage $ 109,200
Park In-Lieu Fee $ 268,800
. Street Improvement Plan Check $ 109,200
Traffic Impact Fee $ 229,992
Transportation Uniform Mitigation Fee $ 1,217,664 .
MSHCP Fee $ 277,368
Public Building Impact Fee $ 302,682
EVMWD Impact Fees $ 1,807,512
Water Fees $ 991,872
Sewer Fees $ 815,640
Total Estimated Cost $ 4,702,818
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It should be noted that the facilities cost estimates include all indirect costs such as project
management, design engineering, right-of-way engineering, soils engineering and testing, plan
. checking, permits, fees, advertisement and award costs and inspections. Actual costs may differ
from the amounts shown, which are estimates only and are not intended to be maximum limits in
what may be expended.
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CFD No. 2004-2 (Viscaya)
November 1, 2005
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COMMUNITY FACILITIES DISTRICT REPORT
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v. Bonded Indebtedness and Incidental Expenses
A. Projected Bond Sales
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The maximum authorized bonded indebtedness for CFD No. 2004-2 is $7,000,000.
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B. Incidental Bond Issuance Expenses to be included in the Proposed Bonded ludebtedness
Pursuant to Section 53345.3 of the Act, bonded indebtedness may include all costs and estimated'
costs incidental to, or connected with, the accomplishment of the purpose for which the proposed
debt is to be incurred, including, but not limited to, the costs 'of legal, fiscal, and financial
consultant fees; bond and other reserve funds; discount fees; interest on any bonds of the district
due and payable prior to the expiration of one year from the date of completion of the facilities,
not to exceed two years; election costs; and ail cost of issuance of the bonds, including, but not
limited to, fees for bond counsel, costs of obtaining credit ratings, bond insurance premiums, fees
for letters of credit, and other credit enhancement costs, and printing costs. For the bonds
proposed to be issued by CFD No. 2004-2, capitalized interest is estimated for 12 months, the
reserve fund is equal to the highest debt service payment in ally year, and all other incidental
bond issuance expenses at approximately 5:0 percent of the face amount ofthe bonds.
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C. Incidental Expenses to be Included in the Annual Levy of Special Taxes
Pursuant to Section 533400fthe Act, the proceedsofany special tax may only be used to pay, in
whole or part, the cost of providing public facilities, services and incidental expenses.' As
defined by the Act, incidental expenses include, but are not limited to, the cost of planning and
designing public facilities to be financed, including the cost of environmental evaluations of
those facilities; the costs associated with' the creation of the district, issuance of bonds,
determination of the amount of taxes, collection of taxes, payment of taxes, or costs otherwise
incurred in order to carry out the authorized purposes of the district; any other expenses
incidental to the construction, completion, and inspection of the authorized work; and the
retirement of existing bonded indebtedness~. While the actual cost of administering CFD No.
2004-2 may vary, it is anticipated that the amount of special taxes which can be collected will be
sufficient to fund at least $25,000 in annual administrative expenses.
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City of Lake Elsinore
CFD No. 2004-2 (Viscaya)
November 1, 2005
Page 6'
COMMUNITY FACILITIES DISTRICT REPORT
VI. Rate and Method of Apportionment of the Special Tax
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All of the property located within CFD No. 2004-2, unless exempted by law or by the Rate and
Method of Apportionment, shall be taxed for the purpose of providing necessary facilities to serve
CFD No. 2004-2. 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." The Special Tax "may be based on benefit received by parcels of real p~operty, the
cost of making facilities or authorized services available. to each parcel or other reasonable basis as
determined by the legislative body," although the Special Tax may not be apportioned on an ad
valorem basis pursuant to Article XIIIA of the California Constitution. .
As shown in Exhibit B, the Rate and Method of Apportionment approved in the Resolution of
Intention provides information sufficient to allow each property owner within CFD No. 2004-2 to
estimate the maximum annual Special Tax he or she will be required to pay. Sections A through C,
below, provide additional information on the Rate and Method of Apportionment of the Special Tax
for CFD No. 2004-2, as is proposed to be adopted in the Resolution of Formation for CFD No. 2004-
2. Please note that all capitalized terms used herein, unless otherwise indicated, sh~1I have the
meanings defined in the Rate and Method ofApportionmeJ;ll.
A. Explanation for Special Tax Apportionment
When a community facilities district (a "CFD") is formed, a special tax may be levied on each
parcel of taxable property within the CFD to pay for the construction, acquisition and
rehabilitation of public facilities, to pay for authorized services or to repay bonded indebtedness U
or other related expenses incurred by the CFD. This special tax must be .apportioned in a
reasonable manner; however, the tax may not be apportioned on an ad valorem basis.
When more than one typ~ of land use is present within a CFD, several criteria may be considered
when apportioning the special tax. Generally, criteria based on building square footage, acreage,
and land use are selected, and categories based on such criteria are established to differentiate
between parcels of property. These categories are a direct result of the projected product mix,
and are reflective of the proposed land use types within that CFD. Specific special tax levels are
assigned to each land use class, with all parcels within a land use class assigned the same special
tax rate.
The facilities to be funded by CFD No. 2004-2 are generally in-tract infrastructure improvements.
These improvements are required for the orderly development of the property within CFD No.
2004-2. Each property will-benefit from the improvements in several ways: I) traffic circulation,
2) site access, 3) recreational amenities, 4) access to utilities, and 5) overall quality of life
enhancement. The special tax can be apportioned using several different factors related to each
property, including density, land area, traffic generation, and building square footage.
Five Land Use Classes have been established for Developed Property, as shown in Table I
below. The Special Tax for a single family residential property will vary directly with the
amount of residential floor area on each parcel. The Special Tax for non-residential property will
be determined based on the acreage of the parcel(s). The Special Tax for Taxable Public
Property, Taxable Property Owner Association Property and Undeveloped Property will be
determined by the acreage of the property.
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City of lake Elsinore
CFD No. 2004-2 (VlSCaya)
November 1, 2005
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COMMUNITY FACILITIES DISTRICT REPORT
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Based on the types of public facilities that are proposed for CFD No. 2004-2 and the factors
described above, the Special Taxes assigned to specific land uses are generally proportionate to
the relative benefits received by them, and, accordingly, the Special Taxes in CFD No. 2004-2
can be considered fair and reasonable.
In addition, a maintenance special tax (Special Tax for Services) has been established to cover
the on-going costs of maintenance of the parks, open space and public storm drain system
required from new development. The Special Tax for single family residential property will be
based on a per unit basis. The area of the property will determine the Special Tax for Non-
Residential Property. '
B. Maximum Special Tax Rates
Special Tax for Facilities
Table I, on the following page,lists the Assigned Special Tax rates for fiscal year 2005-06
that are proposed to be levied against Developed Property within CFD No. 2004-2. The
Maximum Special Taxes for developed property cannot exceed the rates shown in Table I for
fiscal year 2005-06, except when the Backup Special Tax is used as discussed in Section C
below. The Maximum Special Tax that may be levied against Taxable Property Owner
Association Property, Taxable Public Property, and Undeveloped Property cannot exceed
$26,2 I 0 per Acre for fiscal year 2005-06. The Assigned Special Taxes and Maximum
Special Taxes will increase 'at a rate of two percent per year.
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Each year, the City Council shall levy the Special Tax, 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.
Special Tax for Services
Table 2, on the following page, lists the Maximum Special Tax rates for fiscal year 2005-06
that are proposed to be levied against property within CFD No. 2004-2.
C. Backup Special Tax for Facilities
Pursuant to the Rate and Method of Apportionment, the Maximum Special Tax for Facilities for
each Assessor's Parcel classified as Developed Property shall be the greater of (i) the amount
derived by application of the Assigned Special Tax for Facilities or (ii) the amount derived by
application of the Backup Special Tax for Facilities.
D. Accuracy of Information '
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In order to establish the Assigned Special Tax rates, the Backup Special Tax and the Maximum
Special Tax rate for Developed Property, Taxable Public Property, Taxable Property Owner
Association Property, or Undeveloped Property as set forth in the Rate and Method of
Apportionment for CFD 2004-2, the SpeCial Tax Consultant has relied on information including,
but not limited to, absorption, land use types, building square footage, and net taxable acreage
which were provided to the Special Tax Consultant by others. The Special Tax Consultant did
not independently verify such data and disclaims responsibility for the impact of inaccurate data
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City of lake Elsinore
CFD No. 2004-2 (Viscaya)
November 1, 2005
Page 8
COMMUNITY FACILITIES DISTRICT REPORT
provided by others, if any, on the Rate and Method of Apportionment for CFD No. 2004-2, U
including the inability to meet the financial obligations ofCFD No. 2004-2.
TABLE 1
Assigned Special Tax for Facilities for Developed Property
Community Facilities District No. 2004-2
Fiscal Year 2005-2006
Residential Property More than 2,349 sq. ft. . $2,608 per unit
2 Residential Property 1,950 - 2,349 sq. ft. $2,396 per unit
3 Residential Property 1,550 - 1,949 sq. ft. $2,185 per unit
4 Residential Property Less than 1,550 sq. ft. $2,016 per unit
5 Non-Residential Property NA $24,90 I per Acre
TABLE 2
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Maximum Special Tax for Services for Developed Property
Community Facilities District No. 2004-2
Fiscal Year 2005-2006 .
2
Residential Property
Non-Residential Property
$242 per unit
$545 per Acre
E. Increase in the Maximum Special Tax and the Assigned Special Tax
On each July I, commencing July 1,2006, the Maximum Special Tax and Assigned Special Tax
rates for Developed Property, Taxable Property Owner Association Property, Taxable Public
Property, and Undeveloped Property shall be increased by two percent (2.00%) of the amount in
effect in the prior Fiscal Year.
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City of lake Elsinore
CFD No. 2004-2 (Viscaya)
COMMUNITY FACILITIES DISTRICT REPORT
VII. Boundaries of CFD No. 2004-2
November 1, 2005 '
Page 9
The boundaries ofCFD No, 2004-2 include all land on which special taxes may Ix; levied. A copy of .
the Boundary Map for CFD No. 2004-2 is included as Exhibit A.
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CFD No. 2004-2 (Viscaya)
COMMUNITY FACILITIES DISTRICT REPORT
NoVember 1, 2005
Page 10
VIII. General Terms and Conditions
A. Substitution Facilities
The description of the public facilities, as set forth herein, are general in their nature. The 'final
nature and location of improvements and facilities wiU be determined upon the preparation of
final plans and specifications. The final plans may show substitutes, in lieu or modifications to
the proposed work in order to accomplish the work of improvement, and any such substitution
shall not be a change or modification in the proceedings as . long as the facilities provide a service
and are of a type substantially similar to that as set forth in this Report.
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City of Lake Elsinore
CFD No. 2004-2 (Viscaya)
COMMUNITY FACILITIES DISTRICT REPORT
November 1, 2005 .
. Page 11
IX. Certification .
Based on the information provided herein; it.is my opinion that the facilities and services described
herein are necessary to meet increased deml!nds placed upon the County as a result of development
occurring within the boundaries 'of CFD No. 2004-2 and benefit the lands within said CFD No. 2004-
2. Further, it is my opinion that the special tax rates and method of apportionment, as set forth
herein, are fair and equitable, uniformly applied and not discriminating or arbitrary.
Dated: November I, 2005
Harris & Associates
Dennis A. Anderson
Associate / Project Manager
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CitY of lake Elsinore
CFO No. 2004-2 (Viscaya)
Exhibit "A"
Boundary Map
November 1, 2005
Page A-1
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PROPOSED BOUNDARY OF
COMMUNITY FACILITIES. DISTRICT No. 2004-2
OF THE CITY OF LAKE ELSINORE
(VlSCAYA)
COUNTY OF RIVERSIDE.
STATE OF CALIFORNIA
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AGENDA ITEM NO.
PAGE / g
ifY
OF 6/
Q:\ELSINORE\CFD 2004-2 Viscaya (Corman Leigh)\report\CFD Report 2004-2 (Viscaya).doc
City of Lake Elsino"1
CFD No. 2004-2 (Viscaya)
Exhibit "B"
September 20, 2005
Page B-1
Rate and Method of Apportionment
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RATE AND METHOD OF APPORTIONMENT FOR
CITY OF LAKE ELSINORE COMMUNITY FACILITIES DISTRICT No. 2004-2
(VISCAYA)
A Special Tax shall be levied on all Assessor's Parcels in City of Lake Elsinore Community
Facilities bistrict No. 2004-2 (Viscaya) ("CFD No. 2004-2") and collected each Fiscal Year
commencing in Fiscal Year 2005-2006, in an amount determined through the application of this Rate.
and Method of Apportionment.as described below. All of the real property in CFD No. 2004-2,
unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the ~xtent and
in the manner herein provided.
A. DEFINITIONS
The terms hereinafter set forth have the following meanings:
"AcJ:e or Acreage" means the land. area of an Assessor's Parcel as shown on an Assessor's
Parcel Map, or if the land area is not shown on an Assessor's Parcel Map, the land area shown
on the applicable final map, parcel map, coodominium plan, or other recorded County parcel
map.
"Act" means the Mello-Roos Community Facilities Act of 1982, being Chapt~r 2.5, Part I,
Division 2 of Title 5 of the California Government Code.
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"Administrative Expenses" .means the following actual or reasonably estimated costs
directly related to the administration of CFD No. 2004-2: the costs of computing the Special
Taxes and preparing the annual Special Tax collection schedules (whether by the City or
designee thereof or both); the costs of collecting the Special Taxes (whether by the City or
otherwise); the costs of remitting the Special Taxes to the Trustee; the costs of the Trustee
(including its legal counsel) in the discharge .of thl;' duties requiflid of it under the Indenture;
the costs to the City, CFD No. 2004-2 or any designee thereof of complying with arbitrage
rebate requirements; the costs to the City, CFD No. 2004-2 or any designee thereof of
complying with disclosure requirements of the City, CFD No. 2004-2 or obligated persons
associated with applicable federal and state securities laws and the Act; the costs associated
with preparing Special Tax disclosure statements. and responding to public inquiries
regarding the Special Taxes; the costs of the City, CFD No. 2004-2 or any designee thereof
related to an appeal of the Special Tax; the c.osts associated with the. release of funds from an
escrow account; and the City's annual administration fees and third party expenses.
Administrative Expenses shall also include amounts estimated by the CFD Administrator or
advanced by tlie City or CFD No. 2004-2 for any other administrative purposes of CFD No.
2004-2, including attorney's fees and other costs related to commencing and pursuing to
compktion any foreclosure of delinquent Special Taxes.
."Assessor's Parcel" means a lot or parcel. shown in an As~essor's Parcel Map with an
assigned Assessor's Parcel number.
"Assessor's Parcel Map" means an official map of the County Assessor of the County
designating parcels by Assessor's Parcel number.
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City of Lake Elsinore
Community Facilities District No. 2004-2 (VlScaya)
. September 20, 2005
. Page 1 Jl\
AGfNBA FffM ilia. .
PAGE /9 OF 6/
City of lake Elsinore
CFD No. 2004-2 (Viscaya)
Exhibit "8"
September 20, 2005
Page B-2
"Authorized Facilities" means those authorized improvements, as listed in an exhibit to the
Resolution of Formation.
"Backup Special Tax for'Facilities" means the Special Tax for Facilities applicable to each
Assessor's Parcel of Developed Property, as determined in accordance with Section C.1.(c)
below..
"Certificate of Occupancy" means a certificate issued by the City that authorizes the actual
occupancy of a dwelling unit for habitation by one or more residents.
"CFD Administrator" means an official of the City, or designee thereof, responsible for
determining the Special Tax Requirement for Facilities, the Special Tax Requirement for
Services as determined in accordance with Section'l below, and providing for the levy and
collection of the Special Taxes.
"CFD No. 2004-2" means City of Lake Elsinore Community Facilities District No. 2004-2
(Viscaya).
"CFD No. 2004-2 Bonds" means any bonds or other debt (as defined in Section 533 17(d) of
the Act), whether in one or more series, issued by CFD No. 2004-2 and secured solely by the
Special Tax for Facilities levy on propertywithin the boundaries of CFD No. 2004-2 under U'
the Act.
"City" means the City of Lake Elsinore.
"Council" means the City Council of the City of Lake Elsinore, acting as the legislative
body ofCFD No. 2004-2.
"County" means the County of Riverside. .
"Developed Property" means, with respect to the Special Tax for Facilities, for each Fiscal
Year, all Taxable Property, exclusive of Taxable Public Property imd Taxable Property
Owner Association Property, for which the Fina] SiJbdivision was recorded on or before
January I of the prior Fisca] Year and a building permit for new construction was issued on
or before May I of the Fiscal Year preceding the Fiscal Year for which the Special Tax for
Facilities is being levied.
"Fiual Subdivisiou" means (i) a final map, or portion thereof, approved by the City pursuant
to the Subdivision Map Act (California Government Code Section 66410 et seq.) that creates
individual lots for which building permits may De issued, or (ii) for condominiums, a final
map, or portion thereof, approved by the City and a condominium plan recorded pursuant to
California Civil Code Section 13 52 that creates individual lots for which building permits
may be issued. .
"Fiscal Year" means the period starting July I and ending on the following June 30.
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Page 2 ~
AGENDA moM NU.
PAGE;JO OF /'-=
September 20, 2005
City of Lake Elsinore
Community Facilities District No. 2004-2 (JIiscaya)
City of Lake Elsinore
CFD No. 2004-2 (Viscaya)
Exhibit "8"
Seplell1ber20,2005
Page B.3
Rate and Method of Apportionment
n
"Indenture", means the indenture, fiscal agent agreement, resolution or other instrument
pursuant to which CFD No, 2004-2 Bonds are issued, as. modified, amended and/or'
supplemented from time to time, aud any instrument replacing or supplementing the same.
"Land Use Class" means any ofthe classes listed in Table 1 below,
"Maximum Special Tax for Facilities" means the maximum Special Tax for Facilities,
determined in accordance with Section C below, that can be.levied in any Fiscal Year on any
Assessor's Parcel.
"Non-Residential Property" means all Assessor's Parcels of Developed Property for which
a building permit permitting the construction of one or more non-residential units or facilities'
has been issued by the City, .
"Outstanding Bonds" means all CFD No,. 2004-2 Bonds which are deemed to be
outstanding under the Indenture,
"Property Owner Association Property" means, for each Fiscal Year, any property within
the boundaries of CFD No, 2004-2 that was owned by a property owner association,
including any master or sub-association, as of January I of the prior Fiscal Year,
n
"Proportionately" means for Developed Property that the ratio of the actual Special Tax for
Facilities levy to the Assigned Special Tax for Facilities is equal for all Assessor's Parcels of
Developed Property, For Undeveloped Property, "Proportionately" means that the ratio of the
actual Special Tax for Facilities levy per Acre to the Maximum Special Tax for Facilities per
Acre is equal for all Assessor's Parcels of Undeveloped Property, The term "Proportionately"
may similarly be applied to other categories of Taxable Property as listed in Section D below.
"Pnblic Property" means property within the boundaries of CFD No. 2004-2 owned by,
irrevocably offered or dedicated to, or over, through or under which an easement for purposes
of public right-of-way has been granted, to the federal government, the State, the County, the
City, or any local government or other public agency, provided that any property leased by a
public agency to a private entity and subject to taxation under Section 53340.1 of the Act
shall be taxed and classified according to its use,
"Residential Floor Area" means all of the square footage ofliving area within the perimeter
ofa residential structure, not including any carport, walkway, garage, overhang, patio, enclosed
patio, or similar area, The determination of Residential Floor Area for an Assessor's Parcel
shall be made by reference to the building permit(s) issued for such Assessor's Parcel.
"Residential Property" means all Assessor's Parcels of Developed Property for which a
building permit permitting the construction thereon of one or more residential dwelling units
has been issued by the City.
"Resolution of Formation" means the resolution of formation for CFD No, 2004-2,
n
"Special Tax" means any of the special taxes authorized to be levied by CFD No, 2004-2
pursuant to the Act.
City of Lake Elsinore
Community Facilities District No. 2004-2 (VlScaya)
September 20, 2005
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. AGCN&/l l'1=trA f ~
PACE 2( OF C/
City of lake Elsinore
CFD No. 2004-2 (Viseaya)
Exhibit "8"
September 20, 2005
Page B-4
Rate and Method of Apportionment
"Special Tax for Facilities" means the special tax to be levied in each Fiscal Year on each U
Assessor's Parcel of- Developed Property, Taxable Property Owner Association Property,
Taxable Public Property, and Undeveloped Property to fund the Special Tax Requirement for
Facilities.
"Special Tax Requirement for Facilities" means that amount required in any Fiscal Year for
CFD No. 2004-2 to: (i) pay debt service on all Outstanding Bonds duejn the calendar year
commencing in such Fiscal Year; (ii) pay periodic costs on the CFD No. 2004-2 Bonds,
including but not limited to, credit enhancement and rebate payments on the CFD No. 2004-2
Bonds due in the calendar year commencing in such Fiscal Year; (iii) pay a proportionate share
of Administrative Expenses; (iv) pay any amounts required to establish or replenish any reserve
funds for all Outstanding Bonds; (v) pay for reasonably anticipated Special Tax for Facilities
delinquencies based on the delinquency rate for the Special Tax for Facilities levy in the
previous Fiscal Year; (vi) pay directly for acquisition or construction of Authorized Facilities to
the extent that the inclusion of such amount does not increase the Special Tax for Facilities levy
on Undeveloped Property; less (vii) a credit for funds available to reduc.e the annual Special
Tax for Facilities levy, as determined by the CFD Administrator pursuant to the Indenture. .
"State".means the State ofCalifomia.
"Taxable Property" means all of the Assessor's Parcels within the boundaries of CFD No.
2004-2 which are not exempt from the Special Tax forFacilities pursuant to law or Section E
below.
"Taxable Property Owner Association Property" means all Assessor's Parcels of Property U
Owner Association Property that are not exempt pursuant to Section E below.
"Taxable Public Property" means all Assessor's Parcels of Public Property that are not
exempt pursuant to Section E below.
"Trustee" means the trustee or fiscal agent under the Indenture.
"Undeveloped Property" means, for each Fiscal Year, all Taxable Property not classified as
Developed Property, Taxable Property Owner Association Property, or Taxable Public
Property.
B. ASSIGNMENT TO LAND USE CATEGORIES
Each Fiscal Year, all Taxable Property within CFD No. 2004-2 shall be classified as
Developed Property, Taxable Public Property, Taxable Property Owner Association Property,
or Undeveloped Property, and shall be subject to Special Taxes in accordance with this Rate
and Method of Apportionment determined pursuant to Sections C and D below. Residential
Property shall be assigned to Land Use Classes I through 4 as listed in Table I below based
on the Residential Floor Area for each unit. Non-Residential Property shall be assigned to
Land Use Class 5. With respect to Residential Property, the Residential Floor Area shall be
determined from the most recent building permit issued prior to the issuance of a Certificate
of Occupancy for such Assessor's Parcel.
City of Lake Elsinore
Community Facilities District No. 2004-2 (V'lScaya)
U
Septembe~:,O, ~005 J4.
ACEN~~~~40F67-:
City of Lake Elsinore
CFD No. 2004-2 (Viscaya)
Exhibit ~B"
September 20, 2005
Page 8-5
Rate and Method of Apportionment
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C.
MAXIMUM SPECIAL TAX FOR FACILITIES,
Prior to the issuance of CFD No, 2004-2 Bonds, the Assigned Special Tax for Facilities on
Developed Property (set forth in Table I), and the Backup Special Tax for Facilities
attributable to a Final Subdivision, may be reduced in accordance with, and subject to the
conditions set forth in this paragraph, If it is reasonably determined by the CFD
Administrator that the overlapping debt burden (as defined in the Statement of Goals and
Policies for the Use of the Mello-Roos Community Facilities Act of 1982 adopted by the
Council, the "Goals and Policies") calculated pursuant to the Goals and Policies exceeds the
City's maximum level objective set forth in,such document, the Assigned Special Tax for
Facilities on Developed Property, and the Backup Special Tax for Facilities attributable to a
Final Subdivision, may be reduced to the amount necessary to satisfy the City's objective
with respect to the maximum overlapping debt burden level with the written consent of the
CFD Administrator, The reductions permitted pursuant to this paragraph shall be reflected in
an amended Notice of Special Tax Lien which the City shall cause to be recorded by
executing a certificate in substantially the form attached hereto as Exhibit "A", '
I, Developed Propertv
(a) Maximum Special Tax for Facilities
(",
The Maximum Special Tax for Facilities, for each Assessor's Parcel classified as
Developed Property shall be the greater of (i) the ~ountderivedby application of
the 'Assigned Special Tax for Facilities or (ii) the amount derived by application of
'the Backup Special Tax for Facilities,
(b) Assigned Special Tax for Facilities
The Fiscal Year 2005-2006 Assigned Special Tax for Facilities for each Land Use
Class is shown below in Table 1.
TABLEt
Assigned Special Tax for Facilities for Developed Property
Community Facilities District No. 2004-2
Fiscal Year 2005-2006
Residential Property More than 2,349 sq, ft, $2,608 per unit
2" Residential Property 1,950 - 2,349 sq. ft. $2,396 per unit
3 Residential Property 1,550 - 1,949 sq. ft. $2,185 per unit
4 Residential Property Less than 1,550 sq. ft. $2,016 per unit
5 Non-Residential Property. NA $24,90 I per Acre
(\
, September 20, 2005
A"N~ r. r::Ra~..A
PAO& ti}.3
City of Lake Elsinore
Community Facilities District No. 2004-2 (Viscaya)
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City of lake Elsinore
CFD No. 2004-2 (Viscaya)
Exhibit "Bn
September 20, 2005
Page B-6
Rate and Method of Apportionment
(c) Backup Special Tax for Facilities
The Fiscal Year 2005-2006 Backup Special Tax for Facilities attributable to a Final
Subdivision will equal $26,210 multiplied by the Acreage of all Taxable Property,
exclusive of any Taxable Property Owner Association Property and Taxable Public
Property, therein. The Backup Special Tax for Facilities for each Assessor's Parcel
of Residential Property shall be computed by dividing the Bac.kup Special Tax for
Facilities attributable to the applicable Final Subdivision by the number of Assessor's
Parcels for which building permits for residential construction have or may be issued
(i.e., the number or residential lots). The Backup Special Tax for Facilities for each
Assessor's Parcel of Non-Residential Property therein shall equal $26,210 multiplied
by the Acreage of such Assessor's Parcel. '
If a Final Subdivision includes Assessor's Parcels of Taxable Property for which
building permits for both residential and non-residential construction may be issued,
exclusive of Taxable Property Owner Association Property and Taxable Public
Property, then the Backup Special Tax for Facilities for each Assessor's Parcel of
Residential Property shall be computed exclusive of the Acreage and Assessor's
Parcels of property for which building permits for non-residential construction may
be issued.
U
Notwithstanding the foregoing, if all or any portion of the Final Subdivision(s)
described in the preceding paragraphs is subsequently changed or modified by
recordation of a' lot line adjustment or similar instrument, and only if the CFD
Administrator determines that such change or modification results in a decrease in the U
number of Assessor's Parcels of Taxable Property for which building permits for
residential construction have or may be issued within such Final Subdivision, then the
Backup Special Tax for Facilities for each Assessor's Parcel of Developed Property
that is part ofthe lot line adjustment or similar instrument for such Final Subdivision
shall be a rate per Acre as calculated below. The Backup Special Tax for Facilities
previously determined for an Assessor's Parcel of Developed Property that is not a
part of the lot line adjustment or similar instrument for such Final Subdivision shall
not be recalculated.
I. Determine the total Backup Special Tax for Facilities anticipated to
apply to the changed or modified portion of the Final Subdivision
area prior to the change or modification.
2. ' The result of paragraph I above shall be divided by the Acreage of
Taxable Property which is ultimately expected to exist in such
changed or modified portion of the Final Subdivision area, as
reasonably determined by the CFD Administrator.
3. . The result of paragraph 2 above shall be the Backup Special Tax for
Facilities per Acre which shall be applicable to Assessor's Parcels of
Developed Property in such changed' or modified portion of the Final
Subdivision area for all remaining Fiscal Years in which the Special
Tax for Facilities may be levied.
City of Lake Elsinore
Community Facilities District No. 2004-2 (VlScaya)
A(j~Vf(/4~05
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City of Lake Elsinore
CFD .No. 2004-2 (Viscaya)
Exhibit "B"
September 20, 2005
Page 8-7.
Rate and Method of Apportionment
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(d) Increase in the Assigned Special Tax for Facilities and Backup Special Tax for
Facilities .
The Fiscal Year 2005-2006Assigned Special Tax for Facilities, identified in Table I
above, and Backup Special Tax for Facilities shall increase thereafter, commencing
on July I, 2006 and on July I of each Fiscal Year thereafter, by an amount. equal to
two percent (2%) ofthe .amount in effect for the previous Fiscal Year.
(e) Multiple Land Use Classes.
In some instances an Assessor's Parcel of Developed Property may contain more than
one Land Use Class. The Maximum Special Tax for Facilities levied on an
Assessor's Parcel shall be. the sum of the Maximum Special Tax for Facilities for all
Land Use Classes located on that Assessor's Parcel. The CFD Administrator's
allocation to each type of property shall be final.
2. Taxable PropertY Owner Association ProperlY. Taxable Public ProperlY. and
Undeveloped Propertv
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The Fiscal Year 2005-2006 Maximum Special Tax for Facilities for Taxable Property
Owner Association Property, Taxable Public Property, and Undeveloped Property
shall be $26,210 per Acre and shall increase thereafter, commencing on July I, 2006
and on July I of each Fiscal Yeai thereafter; by an amount equal to two percent (2%)
of the Maximum Special Tax for Facilities in effect for the previous Fiscal Year.
D.
METHOD OF APPORTIONMENT OF THE SPECIAL TAX FOR FACILITIES
. .
Commencing with Fiscal Year 2005-2006 and for each following Fiscal Year, the Council
shall determine the Special Tax Requirement for Facilities and levy the Special Tax for
Facilities until the amount of Special Tax for Facilities levy equals the Special Tax
Requirement for Facilities. The Special Tax for Facilities shall be levied each Fiscal Year as
follows: . .
First: The Special Tax for Facilities shall be levied on each Assessor's Parcef of Developed
Property in an amount equal to 100% of the applicable Assigned Special Tax for Facilities;
Second: If additional monies are needed to satisfy the Special Tax Requirement for Facilities
after the first step has been completed,. the Special Tax for Facilities shall be levied
Proportionately on each Assessor's Parcel of Undeveloped Property at up to 100% of the
Maximum Special Tax for Facilities for Undeveloped Property;
Third: If additional ~onies are need!Jd to satisfy the Special Tax Requirement for Facilities
after the first two steps have been completed, then the levy of the Special Tax for Facilities
on each Assessor's Parcel of Developed Property whose Maximum Speci&l Tax for Facilities
is determined through the application of the Backup Special Tax. for Facilities shall be
increased in equal percentages from the Assigned Special Tax for Facilities up to the
Maximum Special Tax for Facilities for each such Assessor's Parcel;
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City of Lake Elsinore
Community Facilities District No. 2004-2 (VlScaya)
September 20, 2005
AQ&ND1.~ d-~
PAOE :25 OF tl
City of lake Elsinore
CFD No. 2004-2 (Viscaya)
Exhibit "8"
Septernber20, 2005
Page B-8
Rate and Method of Apportionment
Fourth: If additional monies are needed to satisfy the Special Tax Requirement for Facilities U
after the first three steps have been completed, then the Special Tax for Facilities shall be
levied Proportionately on each Assessor's Parcel of Taxable Property Owner Association
Property and Taxable Public Property at up to 100% of the Maximum Special Tax for
Facilities for Taxable Property Owner Association Property or Taxable Public Property.
Notwithstanding the above, the Council may, in any Fiscal Year, levy .Proportionately less
than 100% of the Assigned Special Tax for Facilities in step one (above), when (i) the
Council is no longer required to levy the Special Tax for Facilities pursuant to steps two
through four above in order to meet the Special Tax Requirement for Facilities; (ii) all
authorized CFD No. 2004-2 Bonds have already been issued or the Council has covenanted
that it will not issue any additional CFD No. 2004-2 Bonds (except refunding bonds) to be
supported by the Special Tax for Facilities; and (iii) all Authorized Facilities have been
constructed and/or acquired:
Further notwithstanding the above, under no circumstances will the Special Tax for Facilities
levied against any Assessor's Parcel of Residential Property for which a Certificate of
Occupancy has been issued be increased by more than ten percent as a consequence of
delinquency or default by the owner of any other Assessor's Parcel within CFD No. 2004-2.
E. EXEMPTIONS
No Special Tax for Facilities shall he levied on up to 8.14 Acres of Property Owner
Association Property and/or Public Property in CFD No. 2004-2. Tax-exempt status will be U
assigned by the CFD Administrator in the chronological order in which property becomes .
Property Owner Association Property or Public Property. However, should an Assessor's
Parcel no longer be classified as Property Owner Association Property or Public Property, its
tax-exempt status will be revoked. .
Property Owner Association Property or Public Property thaI is not exempt from Special Tax
for Facilities under this section shall be subject to the levy of the Special Tax for Facilities
and shall be taxed Proportionately as part of the fourth step in Section D above, at up to
100% of the Maximum Special Tax for Facilities for Taxable Property Owner Association
Property or Taxable Public Property.
F. MANNER OF COLLECTION
The Special Tax for Facilities shall be collected in the same manner and at the same time as
ordinary ad valorem property taxes; provided, however, that CFD No. 2004-2 may directly
bill the Special Tax for Facilities, may collect Special Taxes at a different time or in a
different manner if necessary to meet its financial obligations, and may covenant to foreclose
and may actually foreclose on delin<juent Assessor's Parcels as permitted by the Act.
G. PREPAYMENT OF SPECIAL TAX FOR FACll..ITIES
The following additional definitions apply ~o this Section G:
!
"Build\lut" means, for CFD No. 2004-2, that all expected building permits have been issued.
City of Lake Elsinore
Community Facilities District No. 2004-2 (VlScaya)
September 20, 2005
Page 8
M~9A II_I'fO.
MOl Ol t
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1-1
Of
City of lake Elsinore
CFD No. 2004.2 (Viscaya)
Exhibit "8"
September 20, 2005
Page 8-g
Rate and Method of Apportionment
n
"CFD Public Facilities" means either $4,404,000 in 2005 dollars, which shall increase by
the Construction Inflation Index on July I, 2006, and on each Ju]y I thereafter, or such lower
number as (i) shall be determined by the CFD Administrator as sufficient to provide the
public facilities to be provided by CFD No. 2004.2 under the authorized bonding program for
CFD No. 2004-2, or (ii) shall be determined by the Council concurrently with a covenant that
it will not issue any more CFD No. 2004-2 Bonds (except refunding bonds) to be supported
by the Special Tax for Facilities levy under this Rate and Method of Apportionment as
described in Section D above.
"Construction Inllation Index" means the annual percentage change in the Engineering
News Record Building Cost Index for the City of Los Angeles, measured as of the calendar
year which ends in the previous Fisca] Year. ]n the event this index ceases to be published,
the Construction Inflation Index shall be another index as determined by the CFD
Administrator that is reasonably comparable to the Engineering News Record Building Cost
Index for the City of Los Angeles.
"Future Facilities Costs" means the CFD Public Facilities minus (i) public facility costs
previously paid from the Improvement Fund, (ii) moneys currently on deposit in the
Improvement Fund, and (iii) moneys currently on deposit in an escrow fund that are expected
to be available to fmance the cost ofCFD Public Facilities.
n
"Improvement Fund" means an account specifically identified in the, Indenture to hold
funds which are currently availab]e for expenditure to acquire or construct CFD Public
Facilities eligible under the Act.
I .
"Previously Issued Bonds" means, for any Fiscal Year, all Outstanding Bonds that are
deemed to be outstanding under the Indenture after the first interest and/or principal payment'
date following the current Fiscal Year.
1. Prepayment in Full
Only an Assessor's Parcel of Developed Property, or Undeveloped Property for which a
building permit has been issued, may be prepaid. The obligation of the Assessor's Parcel to
pay the Special Tax for Facilities may be permanently satisfied as described herein, provided
that a prepayment may be made with respect to a particular Assessor's Parcel only if there are
no ,delinquent Special Taxes with respect to such Assessor's Parcel at the time of
prepayment. An owner of an Assessor's Parcel intending io prepay the Special Tax for
Facilities obligation shall provide the CFD Administrator with written notice. of intent to
prepay. Within 30 days of receipt of such written notice, the CFD Administrator shall notifY
such owner of the prepayment amount for such Assessor's Parcel. The CFD Administrator
may charge a reasonable fee for providing this service. Prepayment must be made not less
than 45 days prior to the next occurring date that notice of redemption of CFD No. 2004.2
Bonds from the proceeds of such prepayment may be given by the Trustee pursuant to the
Indenture.
The Special Tax for Facilities Prepayment Amount (defined below) shall be calculated as
summarized below (capitalized terms as defined below):
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City of Lake Elsinore
Community Facilities District No. 2004.2 (VlScaya)
Sepiember 20, 2005
Pai\e ~ ;:)U
MINDf.lTtlJl e.~
PAGE ;).7 OF tl
City of lake Elsinore
CFD No. 2004-2 (Viseaya)
Exhibit "8"
Septernber20,2005
Page 8-10
Rate and Method of Apportionment
Bond Redemption Amount
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plus
plus
plus
plus
less
less
Total: equals
Redemption Premium
Future Facilities Amount
Defeasance Amount
Administrative Fees and Expenses
Reserve Fund Credit
Caoitalized Interest Credit .
Special Tax for Facilities Prepayment Amount
As of the proposed date of prepayment, the Special Tax for Facilities Prepayment Amount
shall be calculated as follows:
Paral!raph No.:
I. Confirm that no Special Tax delinquencies apply to such Assessor's Parcel.
2. For Assessor's parcels of Developed Property, compute the Assigned Special Tax for
Facilities and Backup Special Tax for Facilities. For Assessor's Parcels of
Undeveloped Property for which a building permit has been issued, compute the
Assigned Special Tax for Facilities and Backup Special Tax for Facilities for that
Assessor's Parcel as though it was already designated as Developed Property, based
upon the building permit which has already been issued for that Assessor's Parcel.
3.
(a) Divide the Assigned Special Tax for Facilities computed pursuant to paragraph 2
by the total estimated Assigned Special Tax for Facilities for the entire CFD No.
2004-2 based on the Developed Property Special Tax for Facilities which could be
levied in the current Fiscal Year on all expected development through Buildout of
CFD No. 2004-2, excluding any Assessor's Parcels which have been prepaid, and
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(b) Divide the Backup Special Tax for Facilities computed pursuant to paragraph 2 by
the total estimated Backup Special Tax for Facilities at Buildout for the entire CFD
No: 2004-2, excluding an): Assessor's Parcels which have been prepaid.
4. Multiply the larger quotient computed pursuant to paragraph 3(a) or 3(b) by the
Previously Issued Bonds to compute the amount of Previously Issued Bonds to be
retired and prepaid (the "Bond Redemption Amount").
5. Multiply the Bond Redemption Amount computed pursuant to paragraph 4 by the
applicable redemption premium (e.g., the redempiion price-I 00%); if any, on the
Previously Issued Bonds to be redeemed (the "Redemption Premium").
6. Compute the current Future Facilities Costs.
7. Multiply the larger quotient computed pursuant to paragraph 3(a) or 3(b) by the
amount determined pursuant to paragraph 6 to compute the amount of Future
Facilities Costs to be prepaid (the "Futtire Facilities Amount").
City of Lake Elsinore
Community Facilities District No. 2004-2 (Viscaya)
September 20, 2005
. Page10 ).L..\
ACiENOA Ii "tit l~V.
PACE ;J. g OF tl
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City of Lake Elsinore
CFD No. 2004-2 (Viseoyo)
Exhibit "B"
September 20, 2005
PageB-11
Rate and Method of Apportionment
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8.
Compute the amount needed to pay interest on the Bond Redemption Amount from
the first bond interest and/or principal payment date following the current Fiscal Year
until the earliest redemption date for the Previously Issued Bonds.
9. Determine the Special Tax for Facilities levied on the Assessor's Parcel in the current
Fiscal Year which has not yet been paid.
10. Compute the minimum amount the 'CFD Administrator reasonably expects to derive
from the reinvestment of the Special Tax for Facilities Prepayment Amount less the
Future Facilities Amount and the Administrative Fees and Expenses (defined below)
from the date of prepayment until the redemption date for the Previously Issued
Bonds to be redeemed with the prepayment. "
II. Add the amounts computed pursuant to paragraphs 8 and 9 and subtract the amount
computed pursuant to paragraph 10 (the "Defeasance Amount").
12. The administrative fees and expenses of CFD No. 2004-2 are as calculated by the
CFD Administrator and include the costs of computation of the prepayment, the costs
to invest the prepayment proceeds, the costs of redeeming CFD No. 2004-2 Bonds,
and the costs of recording any notices to evidence the prepayment and the redemption
(the "Administrative Fees and Expenses").
13.
The reserve fund credit (the "Reserve Fund Credit") shall equal the lesser of: (a) the
expected reduction in the reserve requirement (as defined in the Indenture), if any,
associated with the redemption of Previously Issued Bonds as a result of the
prepayment, or (b) the amount derived by subtracting the new reserve requirement (as
defined in the Indenture) in effect after the redemption of Previously Issued Bonds as
a result of the prepayment from the balance iil the reserve fund on the prepayment
date, but in no event shall such amount be less than zero. No Reserve Fund Credit
shall be granted if the amount then on deposit in the reserve fund for the Previously
Issued Bonds is below 100% of the reserve requirement (as defined in the Indenture).
(\
14. If any capitalized interest for the Previously Issued Bonds will not have been
expended as of the date immediately following the first interest and/or principal
payment following the current Fiscal Year, a capitalized interest credit. shall be
calculated by multiplying the larger quotient computed pursuant to paragraph 3(a)'or
3(b) by the expected balance in the capitalized interest fund or, account under the
Indenture after such first interest and/or principal payment (the "Capitalized'lnterest
Credit").
15. The Special Tax for Facilities prepayment is equal to the sum of the amounts computed
pursuant to paragraphs 4, 5, 7, II and 12, less the amounts computed pursuant to
paragraphs 13 and 14 (the "Specia] Tax for Facilities Prepayment Amount"). ,
From the Special Tax for Facilities Prepayment Amount, the amounts computed pursuant to
paragraphs 4, 5, II, 13 and ]4 shall be deposited into the appropriate fund as established
under the Indenture and be used to retire CFD No. ,2004-2 Bonds or make debt service
payments. The amount computed pursuant to paragraph 7 shall, be deposited into the
Improvement Fund. The amount computed pursuant to paragraph 12 shall be retained by
CFD No. 2004-2.
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City of Lake Elsinore
Community Facilities District No. 2004-2 (VlScaya)
September ZO, Z005
Page 1/
Al:.Iff4DA IlEl'lI ..".
PACE ;/9
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OF C/
City of lake Elsinore
CFD No. 2004-2 (Viscaya)
Exhibit "B"
September 20, 2005
Page 8-12
As a result of the payment of the current Fiscal Year's Special Tax for Facilities levy as
detennined under paragraph 9 (above), .the CFD Administrator shalf remove the current
Fiscal Year's Special Tax for Facilities levy for such Assessor's Parcel from the County taX
rolls. With respect to any Assessor's Parcel that is prepaid, the Council shall cause a suitable
notice to be recorded in compliance with the Act, to indicate the prepayment of the Special
Tax for Facilities and the release of the Special Tax for Facilities lien on such Assessor's
Parcel, and the obligation of such Assessor's Parcel to pay the Special Tax for Facilities shall
cease.
Notwithstanding the foregoing, no Speci{ll Tax for Facilities prepayment shall be allowed
unless, at the time of such proposed prepayment, the amount .of Maximum Special Tax for
Facilities that may be levied on Taxable Property within CFD No. 2004-2 (after excluding
8.14 Acres of Property Owner Association Property and/or Public Property in CFD No.
2004-2 as set forth in Section E) both prior to and after the proposed prepayment is at least
equal to the sum of (i) the Administrative Expenses, as defined in Section A above, and (ii)
l.l 0 times maximum annual debt service, in each remaining Fiscal Year on the Outstanding
Bonds. .
2.
Prepayment in Part
u
The Special Tax for. Facilities on an Assessor's Parcel of Developed Property or an
Assessor's Parcel of Undeveloped Property for which a building pennit has been issued may
be partially prepaid. The amount of the prepayment shall be calculated as in Section G.I;
except that a partial prepayment shall be calculated according to the following fonnula:
PP = [(PE - A) x F] + A
These tenns have the following meaning:
PP = the partial prepayment.
PE = the Special Tax for Facilities Prepayment Amount calculated according to
Section G. I.
F = the percentage, expressed as a decimal, by which the owner of the Assessor's
Parcel is partially prepaying the Special Tax for Facilities.
A = the Administrative Fees and Expenses calculated according to Section G.I.
The owner of any Assessor's Parcel who desires such prepayment shall notify the CFD
Administrator of such owner's intent to partially prepay the Special Tax for Facilities and the
percentage by which the Special Tax for.Facilities shall be prepaid. The CFD Administrator
shall provide the owner with a statement of the amount required for the partial prepayment of
the Special Tax 'for Facilities for an Assessor's Parcel within 30 days of the request and may
charge a reasonable fee for providing this service. With respect to any Assessor's Parcel that
is partially prepaid, the Council shall (i) distribute the funds remitted to it according to
Section G.I, and (ii) indicate in the records ofCFD No. 2004-2 that there has been a partial U
City of Lake Elsinore
Community Facilities District No. 2004-2 (VlScaya)
September 20, 2005
AGENDA InTMq0?
PACE 30 OF ~/
City of Lake Elsinore
CFD No. 2004-2 (Viscaya)
Exhibit "B"
Septe<nber20, 2005
Page 8-13
Rate and Method of Apportionment
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prepayment of the Special Tax for Facilities and that a portion of the Special Tax for
Facilities with respect to such Assessor's Parcel, equal to the outstanding percentage (1.00 -
F) of the remaining Maximum Special Tax for Facilities, shall continue to be levied on such
Assessor's Parcel pursuant to Section D above. '
H.
TERM OF SPECIAL TAX FOR FACILITIES
The Special Tax for Facilities' shall be levied for a period not to' exceed forty years
commencing with Fiscal Year 2005-2006,' provided however that the Special Tax for
Facilities will cease to be levied in an earlier 'Fiscal Year if the CFD Administrator has
determined (i) that' all required interest and principal payments on the CFD No. 2004-2
Bonds have been paid; (ii) all Authorized Facilities have been' acquired and all
reimbursements to the developer have been paid; and (Hi) all other obligations of CFD 2004-
2 have been satisfied.
I. SPECIAL TAX FOR SERVICES
The following additional definitions apply to this Section I:
"Developed Multifamily Uuit" means a residential dwelling unit within a building in which
each of the individual dwelling units has or shall have at least one common wall with another
dwelling unit and a building permit has been issued by the City for such dwelling unit on or
prior to May I preceding the Fiscal Year in which the Special Tax for Services is being
levied.
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"Developed Single Family Unit" means a residential dwelling unit other than a Developed
Multifamily Unit on an Assessor's Parcel for which a building permit has been issued by the
City on or prior to May I preceding the' Fiscal Year in which the Special Tax for Services is
being levied.
, , .
"~aximum Special Tax for Se,rvices',' means the maximum Special Tax for Services that
can be levied by CFD No. 2004-2 in any Fiscal Year on any Assessor's Parcel.
"Operating Fnnd" means a fund that shall'be maintained for CFD No. 2004-2 for any Fiscal
Year to pay for the actual costs of maintenance related to the Service Area, and the applicable
Administrative Expenses.
"Operating Fund Balance" means the amount of funds in the OperatingFund at the end of
the preceding Fiscal Year. '
"Service Area" means parks, open space, and storm drains"
"Special Tax for SerVices" means any of the special taxes authorized to be levied within
CFD No. 2004-2 pursuant to the Act to fund the Special Tax Requirement for Services.
, '
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"Special Tax Requirement for Services" means the amount determined in any Fiscal Year
for CFD No. 2004-2 equal to (i) the budgeted costs directly related to, the Service Area,
including maintenance, repair and replacement of certain components of the Service Area
which have been accepted and maintained or are reasonably expected to be accepted and
maintained during the current Fiscal Year, (ii) pay a proportionate share of Administrative
City of Lake Elsinore
Community Facilities District No. 2004-2 (VlScaya)
S.!P,! tember ~,.?~~5 ':ILl
ACiI:NDAITE~
PAGE 3/ OF b'/
City of lake Elsinore
CFD No. 2004-2 (Viscaya)
Exhibit "B"
September 20, 2005
Page 8-14
Rate and Method of Apportionment
Expenses, arid' (iii) anticipated Special Tax for Services delinquencies based on tbe
delinquency rate for the Special Tax for Services levy in CFD, No. 2004-2 for tbe previous
Fiscal Year, less (iv) the Operating Fund Balance, as determined by tbe CFD Administrator.
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1. Rate and Method of Apportionment ofthe Special Tax for Services
Commencing with Fiscal Year 2005-2006 and for each subsequent Fiscal Year, the Council
shall levy the Special Tax for Services on (i) all Assessor's Parcels containing a Developed
Single Family Unit or Developed Multifamily Unit and (ii) all Assessor's Parcels of Non-
Residential Property, up to tbe applicable Maximum Special Tax for ~ervices to fund the
Special.Tax Requirement for Services. '
The Maximum Special Tax for Services for Fiscal Year 2005-2006 shall be $242 per
Developed Single Family Unit, $121 per Developed Multifamily Unit, and $545 per Acre for
each Assessor's Parcel of Non-Residential Property.
On each July I, commencing July 1,2006, the Maximum Special Tax for Service~ shall be
increased by two percent (2.00%) of the amount in effect in tbe prior Fiscal Year.
2. Duration ofthe Special Tax for 'Services
The Special Tax for Services shall be levied in perpetuity to fund the Special Tax
Requirement for Services, unless no longer required as determined at tbe sole discretion of
tbe Council.
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. 3. Collection of the Special Tax (or Services
The Special Tax for Services shall be collected in the same manner and at tbe same time as
ordinary ad valorem property taxes, provided, however, tbat CFD No. 2004-2 may collect the
Special Tax for' Services at a different time 'or in a different manner if necessary to meet its
funding requirements. '. ,
J; , APPEALS AND INTERPRETATIONS
Any landowner or resident who feels that the amount of the Special Tax levied on their
Assessor's Parcel is inerror may submit a written appeal to CFD No. 2004-2. The CFD
Administrator shall review the appeal and if the CFD Administrator concurs, the amount of
the Special Tax levied shall be appropriately modified.
The Council may interpret this Rate and Metbod of Apportionment for purposes of c1arit)ring
any ambiguity and make determinations relative to tbe annual administration of tbe Special
Tax and any landowner or resident appeals. Any decision of tbe Council shall be final and
binding as to all persons.
City of Lake Elsinore
Community Facilities District No. 2004-2 (Viscaya)
September 20, 2005
Page 14
A\i~NUA II ~M NU.
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PAGE 3;( OF ~/
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City of Lake Elsinore
CFD No. 2004-2 (Viscaya)
Exhibit "8"
Rate and Method of Apportionment
September 20, 2005
Page B-15
EXHIBIT A
CERTIFICATE TO AMEND SPECIAL TAXES
AGENDAITEM.....~
PACE 33. OF 6/
City of lake Elsinore
CFD No. 2004-2 (Viscaya)
Exhibit "8"
Septennber20,2005
PageB-16
Rate and Method of Apportionment
CITY OF LAKE ELSINORE AND CFD No. 2004-2 CERTIFICATE
I. Pursuant tq Section C of the Rate and Method of Apportionment, the City of Lake Elsinore
("City") and City of Lake Elsinore Community Facilities District No. 2004-2 ("CFD No. 2004-
2") hereby agree to a reduction in the Assigned Special Tax for Facilities for Developed Property,
and the Backup Special Tax for Facilities attributable to a Final Subdivision within CFD No.
2004-2:
(a) The information in Table I relating to the Assigned Special Tax for Facilities for
Developed Property within CFD No. 2004-2 shall be modified as follows:
I Residential Property More than 2,349 sq. ft. $_ per unit
2 Residential Property 1,950 - 2,349 sq. ft. $_ per unit
3 Residential Property 1,550 - 1,949 sq. ft. $ per unit
4 Residential Property Less than 1,550 sq. ft. $_ per unit
5 Non-Residential Property NA $_ per Acre
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(b) The Backup Special Tax for Facilities attributable to a Final.Subdivision within CFD No. U
2004-2, as stated in Section C.1.(c), shall be reduced from $26,210 per Acre to $_
per Acre.
2. The Special Tax for Facilities may only be modified prior to the first issuance ofCFD No. 2004-
2 Bonds.
3. Upon execution of the Certificate by the City and CFD No. 2004-2, the City shall cause an
amended notice of Special Tax lien for CFD No. 2004-2 to be recorded reflecting the
'modifications set forth herein.
By execution hereof, the undersigned acknowledges, on behalf of the City and CFD No. 2004-2,
receipt of this Certificate and modification of the Rate and Method of Apportionment as set forth in
this Certificate.
CITY OF LAKE ELSINORE
By:
Date:
CFD Administrator
COMMUNITY FACILITIES DISTRICT NO. 2004-2
OF THE CITY OF LAKE ELSINORE
By:
Date:
AGENDA ITEM NO.
PAGE 3 'I
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OF ~/
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City of lake Elsinore
CFD No. 2004-2 (Viscaya)
EXHIBIT "e"
Property OWner list
November 1, 2005
. Page C-1
APN
379-230-004
379-230-006 .
379-230-008
379-230-009
City of Lake Elsinore
Community Facilities District No. 2004-2
(Viscaya)
Property Owner List
Owner
CORMAN LEIGH TOZAl LAKE SHORE
CORMAN LEIGH TOZAl LAKE SHORE
CORMAN LEIGH TOZAl LAKESHORE
CORMAN LEIGH TOZAl LAKESHORE
Grand Total
Acreage
5.10
9.08
1.08
10.80.
26.36
Q:\ELSINORE\CFD 2004-2 Viscaya (Corman Leigh)\report\CF~ Report 2004-2 (Viscaya).doc
AGENDA ITEM 1~\J. ~4
PAGE 35 OF ~/
City of Lake Elsinore
CFD No, 2004-2 (Viscaya)
EXHIBIT "0"
November 1, 2005
Page 0-1
Effective Tax Rate
City of Lake Elsinore
Commnnity Facilities District2004-2 (Viscaya)
Prodnct Mix and Special Taxes [1]
Fiscal Year 2005-06
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Land Use Land Use Land Use Land Use
Home Special Tax Category Class 1 Class 2 Class 3 Class 4
Home Square Footage = > 2350 sf 19511-2349 sf 15511-1949 sf < 1550 sf
Home Price $ 385,000 $ 360,000 $ 335,000 $ 315,000
Number of Units 50 35 40 43
Base Property Tax (1.0000%) $ 3,850.00 $ 3,600.00 $ 3,350.00 $ 3,150.00
Taxes of all Agencies
Metro Water West 1302999 (0.0052%) $ 20.02 $ 18.72 $ 17.42 $ 16.38
N.W. Mosquito & Vector Control District $ ]0.60 $ 10.60 $ 10.60 $ 10.60
Flood Control & Stormwater I Cleanwater $ 3.75 $ 3.75 $ 3.75 $ 3.75
CSA 152 - Lake Elsinore Stormwater $ 6.64 $ 6.64 $ 6.64 $ 6.64
City of Lake Elsinore Citywide LLMD [2] $ 35.00 $ 35.00 $ 35.00 $ 35.00
City of Lake Elsinore LLMD No. 1 NA NA NA NA
MWD Water Standby West Charge $ 9.22 $ 9.22 $ 9.22 $ 9.22
Flood Zone 3 Benefit Assessment District $ 25.50 $ 25.50 $ 25.50 $ 25.50
City of Lake Elsinore CFDNo. 2003-1 $ 312.12 $ 312.12 $ 312.12 $ 312.12
Proposed CFD No. 2004-2 Special Tax for Services $ 242.00 $ 242.00 $ 242.00 $ 242.00
Proposed CFD No. 2004-2 Special Tax for Facilities $ 2,608.00 $ 2,396.00 $ 2,185.00 $ 2,016.00
Total Property Taxes $ 7,122.85 $ 6,659.55 $ 6,197.25 $ 5,827.21
Annual Home Tax Rate (%) 1.85% 1.85% 1.85% 1.85%
Gross Acreage 25.18 acres
Public Street Acreage (Not in CFD) 1.44 acres
Exempt Acreage (Public & Association Property) 8. l4 acres
Net Taxable Acreage 15.60 acres
Undeveloped Special Tax Rate $24,226 lacre
Max Tax Rate Greater of Assigned Tax: Rate or $24.226/acre
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[l] Based on Projected Special Tax and Bonded lndebtedness, prepared by David Taussig & Associates. dated September 20, 2005
[2] Preliminary. Subject to change.
Q:\ELSINORE\CFD 2004-2 Viscaya (Corman Leigh)\report\CFD Report 2004-2 (Viscaya).doc
AGENDA REM NO. (). L{ l)
PAGE 3~~
RESOLUTION NO. 2005~
('\
RESOLUTION OF FORMATION OF mE CITY COUNCIL OF
THE CITY OF LAKE ELSINORE DETERMINING THE
VALIDITY OF PRIOR PROCEEDINGS AND ESTABLISHING
CITY OF LAKE ElLSINORE COMMUNITY FACILITIES
DISTRICT NO. 2004-2 (VISCAYA)
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WHEREAS, the City Council (the "Council") of the City of Lake Elsinore
(the "City") has heretofore adopted Resolution No. 2005-.-:. ("Resolution of
Intention") stating its intention to form City of Lake Elsinore Community Facilities
District No. 2004-2 (Viscaya) (the "CFD") pursuant to the Mello-Roos Community
Facilities.Act of 1982, as amended (the "Act"); and
WHEREAS, a copy of the Resolution of Intention is on file with the City
Clerk and incorporated herein by reference; and
WHEREAS, pursuant to the Act and in accordance with applicable laws,
this Council held a public hearing on the formation of the CFD and the incurring of
bonded indebtedness with respect to the CFD; and
WHEREAS, at said. hearing all persons not exempt from the Services
Special Tax and the Special Tax desiring to be heard on all. matters .pertaining to
the formation of the CFD were heard and a full and fair hearing was held; and
WHEREAS, at said hearing evidence was presented to the Council on said. .
matters before it, and this Council at the conclusion of said hearing is fully advised
in the premises;
. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF.
LAKE ELSINORE DOES HEREBY RESOLVE, DETERMINE AND
ORDER AS FOLLOWS:
SECTION 1. Pursuant to Section 53325.1(b) of the Government Code,
the Council finds and determines that the proceedings prior hereto were valid and
in conformity with the requirements ofthe Act.
, SECTION 2. A community facilities district to be designated "City of
Lake. Elsinore Community Facilities District No. 2004-2 (Viscaya)" is hereby
established pursuant to the Act.
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45672026.1
AOENDA ITEM NO.
PACE "37
itL\
OF Y/
SECTION 3. The description and map of the boundaries of the CFD on
file in the Clerk's office and as described in the Resolution of Intention and
incorporated herein by reference, shall be the boundaries of the CFD. The map of
the proposed boundaries of the CFD has been recorded in the Office of the County
Recorder of Riverside County, California (Book 64 of Maps of Assessment and
Community Facilities District at page 61 and as Instrument No. 2005-0840756). .
SECTION 4. Except where funds are otherwise available, it is the
intention of the Council to levy annually in accordance with procedures contained
in the Act a special tax (the "Services Special Tax") sufficient to finance a portion
ofthe cost of providing parks, open space and storm drains maintenance services
(the "Services") that are in addition to thpse provided in the territory within the
CFD prior to the formation of the CFD and do not supplant services already
available within the territory proposed to be included in the CFD, the costs of
administering the levy and collection of the Services Special Tax and all other
costs of the levy of the Services. Special Tax, including any foreclosure
proceedings, legal, fiscal and financial consultant fees, election costs, and all other
administrative costs of the tax levy. The Services Special Tax will be secured by .
recordation of a continuing lien against all real property in the CFD. The schedule
of the rate and method of apportionment and manner of collection of the Services
Special Tax is described in detail in Exhibit A attached hereto and by this reference
incorporated herein. The Services are more fully described in the report presented
to this Council at the public hearing (the "Report").
The Services Special Tax is apportioned to each parcel on the foregoing
basis pursuant to Section 53325.3 ofthe Act. '
SECTION 5. The facilities proposed to be financed by the CFD are
public infrastructure facilities and other governmental facilities with an estimated
useful life of five years or longer, which the CFD is authorized by law to construct,
own or operate and that are necessary to meet increased demands placed upon the
City as a result of development or rehabilitation occurring within the proposed
CFD, including but not limited to City street and storm drain improvements, City
Facilities Fees, EVMWD Water and Sewer Capital Facilities Fees, and related
costs including designs, inspections, professional fees, annexation fees, connection .
fees and acquisition costs (the "Facilities"). Such Facilities need not be physically
located within the CFD.
SECTION 6. Except where funds are otherwise available, it is the
intention of the Council to levy annually in accordance with procedUres contained
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AOENDA ITEM NO. . JL{ U
PAGE $8 OF b/
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45672026.1
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in the Act a special tax (the "Special Tax") sufficient to pay for the costs of
financing the acquisition and/or construction of the Facilities, including the
principal of and interest on the bonds proposed to be issued to finance the Facilities
and other periodic costs, the establishment and replenishment ofreserve funds, the"
remarketing, credit enhancement and liquidity fees, the costs of administering the
levy arid collection of the Special Tax and all other costs of the levy of the Special
Tax and issuance of the bonds, including any foreclosure proceedings,
architectural, engineering, inspection, legal, fiscal, and financial consultant fees,
discount fees, interest on bonds due and payable prior to the expiration of one year
from the date of completion" of facilities (but not to exceed two years), election
costs and all costs of issuance of the bonds, including, but not limited to, fees for
bond counsel, disclosure counsel, financing consultants and printing costs, and all
other administrative costs of the tax levy and bond issue. The Special Tax will be
secured by recordation of a continuing lien against all real property in the CFD. In
the first year in which such a Special Tax is levied, the levy shall include a sum
sufficient to repay to the City all amounts, if any, transferred to the CFD pursuant.
to Section 53314 of the Act and interest thereon. The schedule of the rate and
method of apportionment and manner of collection of the Special Tax is described
in detail in Exhibit A attached hereto and by this reference incorporated herein.
The Special Tax is based upon the cost of financing the Facilities in the CFD, the
demand that each parcel will place on the Facilities and the benefit (direct and/or
indirect) received by each parcel from the FaCilities. .
The Special Tax is apportioned to each parcel on the foregoing basis
pursuant to Section 53325.3 of the Act. In the event that a portion of the property
within the CFD shall become for any reason exempt, wholly or partially, from the
levy of the Special Tax, the CoUlicil shall, on behalf of the CFD, increase the levy
to the extent necessary upon the remaining property within the CFD which is not
delinquent or exempt in order to yield the required payments, subject to the
maximum tax. Under no circumstances, however, shall the Special Tax levied
against any parcel used for private residential purposes be increased as a"
consequence of delinquency or default by the owner of any other parcel or parcels
within the CFD by more than 10 percent. Furthermore, the maximum special tax
authorized to be levied against any parcel used for private residential purposes
shall not be increased over time in excess of 2 percent per year. The Facilities are
more fully described in the Report.
SECTION 7. Upon recordation of a Notice of Special Tax Lien
pursuant to Section 3114.5 of the Streets and Highways Code, a continuing lien to
secure each levy of the Services Special Tax and the Special Tax shall attach to all
45672026.1
AOENDA ITEM NO. tj-l.\
PAGE,..3 9 OF b/
real property in the CFD, and the' lien with respect to the Special Tax shall
continue in force and effect until the Special Tax obligation is prepaid or otherwise U
permanently satisfied and the lien canceled in accordance with law, and the lien
with respect to the Services Special Tax and the Special Tax shall continue in force
and effect until collection of the Services Special Tax and the Special Tax by the
CFD ceases.
SECTION 8. Neither the proposed Services Special Tax nor the
Special Tax to be levied in the CFD has been precluded by protests by owners of
one-half or more of the land in the territory included in the CFD pursuant to
Government Code Section 53324.
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SECTION 10. The City Manager, 130 S. Main Street, Lake Elsinore,
California 92530, (951) 674-3124, or his designee, is designated to be responsible
for preparing or causing to be prepared annually a current roll of Services Special
Tax and the Special Tax levy obligations by assessor's parcel number and for
estimating future Services Special Tax and the Special Tax levies pursuant to
Section 53340.1 ofthe Government Code.
/ . .
SECTION 11. The voting procedure with respect to the imposition of
the Services Special Tax and the Special Tax, incurring bonded indebtedness and
establishing an appropriations limit of the CFD shall be by hand delivered or
mailed ballot election.
45672026.1
U
AGENDA ITEM NO. .?-~.
PAGE ~C OF t
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(1
SECTION 12. The City Clerk is directed to certify and attest to this
Resolution and to take any and all necessary acts to call, hold, canvass and certify
an election or elections on the incurring bonded .indebtedness, the levy of the
Special Tax, and the establishment of the appropriation limit.
PASSED, APPROVED AND ADOPTED this
,2005.
. 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
45672026.1
day of
,Robert E. Magee, Mayor
City of Lake Elsinore
AGENDA ITEM NO.~
PACE. t( I OF b/
STATE OF CALIFORNIA }
COUNTY OF RIVERSIDE }
CITY OF LAKE ELSINORE }
SS:
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
, 2005, 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)
45672026.1
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1lMe". 1/:<. -
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EXHIBIT A
RATE AND METHOD OF APPORTIONMENT
45672026.1
ACENDA ITEM NO. ?-l.-\
PAGE 'I ~ OF ~/
EXHIBIT A
For City Council Agend packet purposes, a copy of the RMA is
reproduced as Exhibit B ofthe attached CFD Report
AGENDA ITEM NO.
PAGE 1/'1
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OF 6/_
RESOLUTION NO. 2005-
n
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
LAKE ELSINORE TO INCUR BONDED INDEBTEDNESS IN
THE AMOUNT NOT TO EXCEED $7,000,000 WITIDN THE
CITY OF LAKE ELSINORE COMMUNITY FACILITIES
DISTRICT NO. 2004-2 (VISCAYA) AND CALLING A SPECIAL
ELECTION
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WHEREAS, the City Council (the "Council") of the City of Lake Elsinore
(the "City") has heretofore adopted Resolution No. 2005-~ (the "Resolution of
Formation"), which formed the City of Lake Elsinore Community. Facilities
District No. 2004-2 (Viscaya). (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, a copy of the Resolution of Formation is on file with the City
Clerk and incorporated herein by reference; and
WHEREAS, in order to finance the Facilities it is necessary to incur bonded
indebtedness in the amount not to exceed $7,000,000, the repayment of which is to
be secured by special taxes levied in accordance with Section 53340 tit seq" of the
Act on certain properties within the CFD; .
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF .
LAKE ELSINORE DOES HEREBY RESOLVE, DETERMINE AND
ORDER AS FOLLOWS:
SECTION 1.
The above recitals are true and correct.
SECTION 2. It is necessary to incur bonded indebtedness III the
amount not to exceed $7,000,000 to finance the costs ofthe Facilities.
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45672037.1
ACSIDA lTEM NO. i 4 ~
PACE; 'f~ OF_ 6/
SECTION 3. The indebtedness will be incurred for the purpose of
financing the costs of acquiring the Facilities, the financing of the costs associated U
with the issuance of the bonds and all other costs necessary to finance the Facilities
which are permitted to be financed pursuant to the Act.
SECTION 4. The bonds shall be issued in one or more series at a
maximum interest rate not to exceed 12 percent per annum or such rate not in
excess of the maximum rate permitted by law at the time the bonds are issued, and
payable annually or semiannually as determined by the Council. The term of the
bonds shall be determined pursuant to a resolution of the Council authorizing the
issuance of the bonds, but such term shall in no event exceed 40 years or such
longer term as is then permitted by law.
SECTION 5. Pursuant to and in compliance with the provisions of
Article 1.5 (commencing with Section 53410) of Chapter 3 of Part 1 of Division 2
of Title 5 of the Government Code, the Council hereby establishes .the following
accountability measures pertaining to any bonded indebtedness incurred by or on
behalf ofthe City: .
(a) Such bonded indebtedness shall be incurred for the specific
purposes set forth in Section 3 above.'
(b) The proceeds of any such bonded indebtedness' shall be applied U
only to the specific purposes identified in Section 3 above.
(c) The document or documents establishing' the terms and
conditions for the issuance of any such bonded indebtedness shall provide for the
creation of an account or acco~tsinto which the proceeds of such bonded
indebtedness shall be deposited.
(d) The City Manager, or his or her designee, acting for and on
behalf of the City, shall annually file a report with the Council as required by
Government Code Section 53411.
SECTION 6. Pursuant to Government Code Section 53326, the
Council hereby determines to submit to the qualified electors of the CFD a
proposition (the "Services Proposition") to levy special taxes on property within
the CFD in accordance with the rate and method of apportionment specified in the
Resolution of Formation. The form of the Services Proposition is attached as
Exhibit "A."
45672037.1
ACENDA ITEM NO. OF ';1-~ U
PACE 't'6' _
SECTION 7. Pursuant to Government Code Section 53353.5, the
Council hereby determines to submit to the qualified electors of the CFD a
combined proposition (the "Facilities Proposition") to: (1) levy special taxes on
property within the CFD in accordance with the rate and method of apportionment
of special tax specified in the Resolution of Formation; (2) incur bonded
indebtedness in the amount not to exceed $7,000,000; and (3) establish an
appropriations limit as defined by subdivision (h) of Section 8 of Article XIIIB of
the California Constitution, for the CFD. Said appropriations limit shall equal the
maximum amount of bonded indebtedness authorized to be incurred for the CFD.
The form of the Facilities Proposition is attached as Exhibit "B."
SECTION 8. A special election is hereby called for the CFD on the
Services Proposition set forth in Section 6 above.
SECTION 9. A special election is hereby called for the CFD on the
Facilities Proposition set forth in: Section 7 above. .
SECTION 10. The time fornotice having been waived by the qualified
electors, the date of the special election for the CFD on the Services Proposition
and for the CFD on the Facilities Proposition shall be on the 8th day of November,
2005. There being no registered voters residing within the territory of the CFD at
n the time of the protest hearing and ninety (90) days prior thereto, there being only
two landowners in the CFD, and the requirements of Section 53326 of the
Government Code having been waived by the landowners, the ballot for the special
election shall be hand delivered to the landowners within the CFD. The voter
ballot shall be returned to the City Clerk at 130 S. Main Street, Lake Elsinore,
California 92530, no later than 11:00 o'clock p.m. on November 8, 2005.
However, the election may be closed within the concurrence of the City Clerk, as
soon as the ballotis returned.
n
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SECTION 11. Notice of said election and written argument for or
against the measure have been waived by the landowners.
SECTION 12. The CFD shall constitute a single election precinct for the
purpose of holding said special election.
SECTION 13. The Council hereby directs that the special election be
conducted by the City Clerk, as the elections official.
SECTION 14. This Resolution shall take effect from and after the date
of its passage and adoption.
45672037.1
ACENDAITEM NO. .;21.\
PACE '1'7 OF ~/.
PASSED, APPROVED AND ADOPTED this
. ,2005.
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
45672037.1
day of
Robert E. Magee, Mayor
City of Lake .Elsinore
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AGENDA ITEM NO. d-L'\ U
PAGE 'I~ OF 6/
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STATE OF CALIFORNIA }
COUNTY OF RIVERSIDE }
CITY OF LAKE ELSINORE }
SS:
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
, 2005, 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)
45672037.1
AGENDA ITEM NO. )-.~
p~ '19 OF ~/
EXHIBIT A
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OFFICIAL BALLOT
CITY OF LAKE ELSiNORE
COMMUNITY FACILITIES DISTRICT NO. 2004-2
(VlSCA Y A)
SERVICES SPECIAL TAX ELECTION
November 8, 2005
To vote, mark an "X" in the voting square after the word "YES" or after the
word ''NO.'' All marks otherwise made are forbidden.
This ballot is provided to , as owner or authorized
representative of such owner of land within. City of Lake Elsinore Community
Facilities District No. 2004-2 (Viscaya) and represents _ vote(s).
If you wrongly mark, tear, or deface this ballot, return it to the City Clerk of
the City of Lake Elsinore at 130 S. Main Street, Lake Elsinore, California 92530.
PROPOSITION: Shall City of Lake Elsinore Community
Facilities District No. 2004-2 (Viscaya), subject to the
accountability measures provided for in the Resolution of
Formation adopted on November 8, 2005 (the
"Resolution of Formation"), be authorized to levy special
taxes pursuant to the rate and method of apportionment
of special taxes (the "Special Tax Formula") set forth in
Exhibit A of the Resolution of Formation to finance the
,
authorized services and administrative. expenses as
provided for in the Resolution of Formation?
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YES
NO
45672037.\ .
A-I
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AGENDA ITEM NO.
PAGE 5"0 OF
;7-L\
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EXHIBIT B
OFFICIAL BALLOT
CITY OF LAKE ELSINORE
COMMUNITY FACILITIES DISTRICT NO. 2004-2
(VISCA Y A)
SPECIAL TAX ELECTION
November 8, 2005
To vote, mark an "X" in the voting square after the word "YES" or after the word
"NO." All marks otherwise made are forbidden.
This ballot is provided to , as owner or authorized
representative of such owner of land within City of Lake Elsinore Community Facilities
District No. 2004-2(Viscaya) and represents _ vote(s).
If you wrongly mark, tear; or deface this ballot, return it to the City Clerk of the
City of Lake Elsinore at 130 S. Main Street,Lake'Elsinore, California92530.
PROPOSITION: Shall the City of Lake Elsinore Community
Facilities District No. 2004-2 (Viscaya) (the "CFD"), subject
to the accountability measures provided for in the Resolution'
Calling a Special Election adopted on November 8, 2005
("Resolution Calling Special Election"), incur an
indebtedness and be authorized to issue bonds in an amount
not to exceed $7,000,000 with interest at a rate or rates
established at .such time as the bonds are sold in one or more
series at fixed or variable interest ~ates, however not to .
exceed any applicable statutory rate for such bonds, the
proceeds of which will be used to finance the certain public
facilities (the "Facilities") as described in the Resolution of
Formation adopted on November 8, 2005 ("Resolution of
Formation"); and, subject to the accountability measures
provided for in the Resolution of Formation, shall a special
tax be levied to pay the principal of and .interest on such
indebtedness and bonds and to otherwise finance the
Facilities; and shall an appropriations limit be established for
the CFD pursuant to . Article XIIIB of the CalifoTIlia
Constitution, said appropriations limit' to be equal to' the
maximum amount of bonded indebtedness authorized to be
incurred for the CFD?
45672037.1
B-1
YES
NO
AGENDA ITEM r.O.
PAGE .s- (
OF ~~
WHEREAS, the City Council (the "Council") of the City of Lake Elsinore
(the "City") has previously conducted proceedings pertaining to the formation of
the City of Lake Elsinore Community Facilities District No. 2004-2 (Viscaya) (the
"CFD"), the rate and method of apportionment for the levy and collection of
special taxes (the "Services Special Tax") to finance a portion of the cost of
providing parks, 'open space and storm drains maintenance services, the
authorization of indebtedness in the amourit not to exceed $7,000,000 within the
CFD, the rate and method of apportionment for the levy and collection of special
taxes (the "Special Tax") to pay the principal and interest on bonds issued or other
debt, and the establishment of an appropriations limit, and the calling of an election
in regard to the foregoing; and
WHEREAS, on November 8, 2005, special elections were held within the
CFD relative to the rate and method of apportionment of Services Special Tax, the
authorization of not to exceed $7,000,000 of indebtedness within the CFD, the rate
and method of apportionment of the Special Tax, and the establishment of an
appropriations limit; and
WHEREAS, at such special elections the proposals for the rate and method
of apportionment and manner of collection of the Services Special Tax, incurring
the bonded indebtedness, the rate and method of apportionment and manner of
collection of the Special Tax and establishing an appropriations liniit for the CFD
were approved by the requisite 2/3 of the votes cast by qualified electors of the
CFD;
u
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF
LAKE ELSINORE DOES HEREBY RESOLVE, DETERMINE AND
ORDER AS FOLLOWS:
SECTION 1. It is hereby determined that the special elections
conducted within the CFD were duly and validly conducted.
45672045.1 U
ACENDA ITEM NO. .?LL{
PACE S-:<" OF b/
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SECTION 2. The Council, acting as the legislative body of the CFD, is '
authorized to levy the Services Special Tax on behalf of the CFD, as specified in
Resolution No. 2005- (the "Resolution of Formation") adopted by the
Council on November 8, 2005.
SECTION 3. The Council, acting as the legislative body of the CFD, is
authorized to levy the Special Tax on behalf of the CFD, as specified in the
. Resolution of Formation.
SECTION 4. The Council is authorized to incur indebtedness on behalf
of the CFD in the maximum amount of $7,000,000.
SECTION 5.
for the CFD.
The City is authorized to establish an appropriations limit
SECTION 6; The City Clerk is hereby directed and authorized to
record notice of the special tax of the CFD by recording a Notice of Special Tax
Lien of the CFD pursuant to Section 3117.5 of the California Streets and Highways
Code.
.,. \
45672045.1
AGENDA ITEM NO. ~ ~ .
PACE 53 _Of p/ -
PASSED, APPROVED. AND ADOPTED. this.
,2005..
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
45672045.1
day of
U
Robert E. Magee, Mayor
City of Lake Elsinore .
U'
ACENDAITEM NO. ~ U
. PACE S-7"~
n
n
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STATE OF CALIFORNIA }
COUNTY OF RIVERSIDE }
CITY OF LAKE ELSINORE }
SS:
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
, 2005, 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)
45672045.1
AGENDA itEM NO. t7l~
~Mi': S5"" OF ~/
ORDINANCE NO.
ORDINANCE OF THE CITY COUNCIL OF THE CITY OF.
LAKE ELSINORE AUTHORIZING THE LEVY OF A
SERVICES SPECIAL TAX AND A SPECIAL TAX
U
WHEREAS, on September 27, 2005, the City Council (the "Council") of .
the City of Lake Elsinore (the "City") adopted Resolution No. 2005-_ stating its
intention to form the City of Lake Elsinore Community Facilities District No.
2004-2 (Viscaya) (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 September 27, 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 $7,000,000 to be issued for the purpose of financing theU
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 $7,000,000 within the boundaries of the CFD; and
WHEREAS, on November 8, 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
ACENDA ITEM NO. ,9. <-{ ( J
PACE 5"6 OF 6/
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CITY COUNCIL ORDINANCE NO.
Page 2 of 5
WHEREAS, at said hearing all persons desiring to be heard on all matters
pertaiI1ing to the formation of the C~D 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 tosaid hearing adopted Resolution No.
2005- which called an election within the CFD for November 8, 2005 on
the proposition of incurring bonded indebtedness, levying a special tax and setting
an appropriations limit; and
. WHEREAS, on November 8,2005, an election was held within theCFD 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 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".
45672073.\
ACENDA ITEM NO. ,,~
. PACE 57~
CITY COUNCIL ORDINANCE NO.
Page 3 of5
SECTION 4. All of the collections of the Services Special Tax and U
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.
SECTION 7. This ordinance relating to the levy of the Services Special U
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 ofthis ordinance shall be transmitted to the '
Clerk of the Board of Supervisors ofRive~side County,' the Assessor and the
Treasurer-Tax Collector of Riverside County.
INTRODUCED AND APPROVED UPON FIRST READING this
day of ,2005, upon the following rollcall vote:
, AYES:
COUNCILMEMBERS:
NOES:
COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
ABSTAIN:COUNCILMEMBERS:
45672073, I
AOENDAITEMNO. J.~
.....>&' OF vTU
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CITY COillfCIL ORDINANCE NO.
Page 4 of5
PASSED, APPROVED AND ADOPTED UPON SECOND READING
this _ day of , 2005, upon the following roll call vote:
AYES: COUNCILMEMBERS:
NOES:. COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
ABSTAIN:COUNCILMEMBERS:
Robert Magee, Mayor
City of Lake Elsinore
ATTEST:
Frederick Ray, City Clerk
City of Lake Elsinore
APPROVED AS TO FORM:
Barbara Zeid Leibold, City Attorney
City of Lake Elsinore
(SEAL)
45672073.1
AGENDA ITEM NO. .7- ~
. PAOE 59 of 6'1
CITY COUNCIL ORDINANCE NO.
Page 5 of5
45672073. J
EXHIBIT "A"
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RATE AND METHOD OF APPORTIONMENT
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~l.itNDAITEIVI ",-J'-\
PACE 6 OOF 6/
EXHIBIT A
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For City Council Agend packet purposes, a copy ofthe RMA is
reproduced as Exhibit B ofthe attached CFD Report
(\
AOENDA ITEM NO. J ~I
PAOE bf OF
u
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n
CITY OF LAKE ELSINORE
REPORT TO CITY COUNCIL
TO:
MAYOR AND CITY COUNCIL
FROM:
ROBERT A. BRADY,CITY MANAGER
DATE:
. NOVEMBER 8, 2005.
SUBJECT:
RESOLUTION AUTHORIZING THE ISSUANCE OF
BONDS AND APPROVING BOND DOCUMENTS FOR
COMMUNITY FACILITIES DISTRICT NO. 2005-2
(ALBERHILL RANCH)
BACKGROUND
On July 12,2005, the City adopted a resolution of intention to form Community
Facilities District (CFD) 2005-2 (Alberhill Ranch) and a resolution of intention to
incur bonded indebtedness to finance the facilities. On August 23, 2005, a public
hearing was held to form the district and authorize the levy of special taxes.
DISCUSSION
The developer plans to build 1,181 single family homes and 389 multi-family
homes. There are three improvement areas.
Bond Issue
In order to finance the facilities it is necessary to incur bonded indebtedness. The
not to exceed amount is $90,000,000. Before you is the resolution authorizing the
issuance of the first bond issue for Improvement Area A and the related bond
documents. The bond issue has been sized at $24,345,000. The resolution
approves the following bond documents:
. .
1. Fiscal AgentAgreement (Page 15 to 65 of230) .
2. Continuing Disclosure Agreement(Page 66 to 75 of 230)'
3. Purchase Contract (Page 76 to 103 of230)
4. Funding, Construction and Acquisition Agreement (Page 104 to 145 of230)
5. Preliminary Official Statements (Page 146 to 230 of 230)
7\
OF :230
AGENDA ITEM NO.
PACE /
REPORT TO CITY COUNCIL
NOVEMBER 8, 2005
PAGE 2
Special Tax
The average residential special tax for improvement areas A, B and C is estimated
at $3,416, $3,206, and $3,086, respectively. The annual CFD tax (lmounts, when
combined with all other property taxes applicable to the project, are estimated to be
approximately 1.98%, 1.98%, and 1.99% for improvement areas A, Band C,
respectively, which is within the 2% City CFD guidelines. The 2% maximum tax
rate includes EVMWD's CFD 98-1 and the proposed Parks, Open Space, and
Storm Drains CFD.
Parks, Open Space and Storm Drains Operation and Maintenance
Built into the rate and method of apportionment (RMA) is a component to cover a
portion of increased cost of maintaining parks, open space and storm drains as a
result of the new development.
u
~~~ U
The proposed facilities listis attached. The list totals $87,299,028. The list
contains $8,725;307 of City of Lake Elsinore impact fees including MSHCP of.
$2,361,004 and developer agreement fees of$I,570,000 and Traffic Impact Fees
(TIF) of$I,872,006. The list also includes $47,743,401 of City of Lake Elsinore
street, storin drain, park improvements, and park land acquisition, $1,400,000 of
Caltrans improvements, and $29,430,320 of EVMWD impact fees and.
improvements.
FISCAL IMPACT
Repayment of the bonds are secured by the special taxes levied on all property
within the Improvement Area, 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.
ACENDA ITEM NO.
PACE ~
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OF~O
(""1
n
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REPORT TO CITY COUNCIL
NOVEMBER 8, 2005
PAGE 3
RECOMMENDATION
It is recommended that City Council adopt Resolution No. 2005 - _ which
approves the following:
1. Issuance ofCFD 2005-2 (Alberhill Ranch) 2005 Series A Bonds
2. Fiscal Agent Agreement
3. Continuing Disclosure Agreement
4. Purchase Contract
5. Funding, Construction and Acquisition Agreement
6. Preliminary Official Statements
PREPARED BY, ~~
MATTN.PRES. .
DIRECTOR OF ADMINISTRATIVE SERVICES
APPROVED FOR
AGENDA BY:
AGENDA ITEM NO.
PAGE 3
?\
OFa~O
City of lake Elsinore
CFD No. 2OO~2 (Alberhill Ranch)
Exhibit "8"
Rate & Method of Apportionment
June 30, 2005
Page 8'38
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City of Lake Elsinore
Community Facilities District No. 2005-2 (Alberhill Ranch)
Improvement Area B
June 30, 2005
Page 38
AGENDA ITEM NO.
PAGE 'i
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3>1
OF ~3o
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SOURCES AND USES OF FUNDS
Community Facilities District 2005-2
2005 Series A
Sources:
Bond Proceeds:
Par Amount
Original Issue Discount
24,645,000.00
(37,384.05)
24,607,615.95
Uses:
Project Fund DeJXlsits:
Improvement Fund
20,387,713.52
Other Fund Deposits:
Reserve F!lJld
Capitalized Interest
2,198,126.26
988,876.17
3,1 87,002.43
Delivery Date Expenses:
Cost of Issuance
Underwriter's Discount
360,000.00
492,900.00
852,900.00
Other Uses of Funds:
. Reimbursements
180,000.00
24,607,615.95
Oct 13,2005 1:08 pm Prepared by Rod Gunn Associates
AbENDA ITEM NO.
PAGE 5
Page I
3>1
OF ~:\O
u
Oct 13, 2005 1 :08 pm Prepared by Rod Guon Associates
Page 2
AGENDA ITEM NO.
PAGE (D
-:;1
OF "d.:!:>O
(\ BOND SOLUTION
Community Facilities District 2005-2.
2005 Series A
Period Proposed Proposed TotaIAdj Revenue Unused Debt Serv
Ending Principal Debt Service Debt Service Constraints Revenues Coverage
09/0112006 988,876 988,876 (988,876)
09/0112007 70,000 1,323,505 1,323,505 1,459,000 135,495 110.23759%
09/0112008 100,000 1,351,230 1,351,230 1,489,000 137,770 110.19590%
09/0112009 130,000 1,377,830 1,377,830 1,518,000 . 140,170 110.17324%
09/0112010 165,000 1,407,955 1,407,955 1,549,000 141,045 110.01772%
09/01/2011 200,000 1,436,355 1,436,355 1,580,000 143,645 110.00066%
09/01/2012 235,000 1,463,355 1,463,355 1,611,000 147,645 110.08949%
09/0112013 275,000 1,493,661 1,493,661 1,644,000 150,339 110.06512%
09/01/2014 315,000 1,521,974 1,521,974 1,676,000 154,026 110.12016%
09/01/2015 360,000 1,552,799 1,552,799 1,710,000 157,201 110.12374%
09/0112016 405,000 1,581,599 1,581,599 1,744,000 162,401 11026817%
09/01/2017 455,000 1,612,868 1,612,868 1,779,000 166,133 110.30044%
09/0112018 510,000 1,646,255 1,646,255 1,815,000 168,745 110.25023%
09/0112019 570,000 1,681,520 1,681,520 1,851,000 169,480 110.07898%
09/0112020 630,000 1,713,733 1,713,733 1,888,000 174,268 110.16889%
09/0112021 695,000 1,747,233 ' 1,747,233 1,926,000 178,768 110.23147%
09/0112022 765,000 1,781,788 1,781,788 1,964,000 182,213 110.22639%
09/0112023 840,000 . 1,817,773 1,817,773 2,004,000 186,228 110.24482%
09/0112024 920,000 1,854,933 1,854,933 2,044,000 .189,068 110.19269%
09/0112025 1,005,000 1,893,013 ' 1,893,013 2,085,000 191,988 110.14190%
09/0112026 1,095,000 1,931,758 1,931,758 2,126,000 194,243 ,110,05522%
09/0112027 1,190,000 1,969,818 1,969,818 2,169,000 199,183 110.11172%
(\ 09/0112028 1,290,000 2,007,938 . 2,007,938 2,212,000 204,063 II 0.1 6279%
09/0112029 1,400,000 2,050,858 2,050,858 2,256,000 205,143 110,00277%
09/01/2030 1,510,000 2,088,058 2,088,058 2,302,000 213,943 110,24601%
09/01/2031 1,630,000 2,129,538 2,129,538 2,348,000 218,463 110,25868%
09/0112032 1,760,000 2,173,963 2,173,963 2,395,000 221,038 110.16749%
09/0112033. 1,895,000 2,216,563 2,216,563 2,442,000 225,438 110,17059%
09/0112034 2,040,000 2,262,075 2,262,075 2,491,000 228,925 110,12013%
09/0112035 2,190,000 2,304,975 2,304,975 2,541,000 236,025 110.2398]%
24,645,000 52,383,791 52,383,791 56,618,000 4,234,209
(\/
Oct 13, 2005 1 :08 pm Prepared by Rod Gunn Associates'
Page 3
AGENDA ITEM NO.~
PAGE 7 OF ~:sO
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AGENDA ITEM NO.
PAGE g
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City of Lake Elsinore
CFD No. 2005.2 (Alberhill Ranch)
COMMUNITY FACILITIES DISTRICT REPORT
August 15, 2005
Page 4
IV. Cost Estimate
(Amended November I, 2005)
The cost estimate for the facilities described in Section III is set forth below. The actual facilities to
be financed will ultimately' be determined in accordance with the Funding,' Construction and
Acquisition Agreement between the City and Developer.
Community Facilities District No. 2005-2
(Alberhill Ranch)
Estimated Facilities Costs
Facilities Cost Estimate , '
Stonn Drain Improvements $ 5,767,552
Traffic Signals $ 2,044,934
Water & Sewer Improvements $ 13,441,440
Street Improvements (including CalTrans) $ 18,838,024
Streetscape Improvements $ 1,646,318
Park/Recreational Improvements $ 2,000,000
Park Land Acquisition
Value to be determined
Construction Bonds, Fees, Engineering .
City Impact Fees
Library Fee $
Traffic Impact Fee $
Fire Mrtigation Fee $
MSHCP Fee ' , ' $
DAG fee $
Storm Drain Impact Fee' $
235,500
1,872,006
235,500
,2,361,004
1,570,000
2,451,297
EVMWD Impact Fees ,
Water Fees
Sewer Fees'
$ 8,523,530
$ 7,465,350
Total Estimated Cost
$, 8,846,573
$ , 8,725,307
$ 15,988,880
$ 77,299,028
plus Park Land Value
It should be noted that the facilities cost estimates include all 'indirect costs such as project
management, design' engineering, right-of-way engineering, soils engineering and testing, plan
checking, permits, fees, advertisement and award costs and inspections. Actual costs may differ
from the amounts shown, which are estimates only and are not intended to be maximum limits in
what may be expended,
, . . . , ' .
Amendment: Storm Drain Impact Fees have been included as an eligible cost. 'The developer
inadvertently omitted these costs from the original request. Also, the park costs have: been clarified
and reference to the CalTrans costs has been added,
Q:\ELSINORE\CFD 2005.2 Alberhill (Castle & Cook)\report\Amended CFD Report 2005-2 (AlberhiJI Ranch) 1l-Ol-05.doc
,~, AGENDA ITEM NO..-2L-
PAGE 9, OF 230
RESOLUTION NO. 2005-
RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF LAKE ELSINORE AUTHORIZING THE ISSUANCE
OF THE CITY OF LAKE ELSINORE COMMUNITY
FACILITIES DISTRICT NO. 2005-2 (ALBERHILL
RANCH) SPECIAL TAX BONDS (IMPROVEMENT
AREA A) 2005 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. 2005-2
(Alberhill Ranch) (the "CFD"), to authorize the levy of special taxes upon
the land within the CFD designated as Improvement Area A, 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 or capital fees and other
government facilities or capital fees, which are necessary to meet increased
demands placed upon the City as a result of development or rehabilitation
occurring within such Improvement Area A (the "F~cilities"); and
WHEREAS, the Council intends to issue bonds designated "City of
Lake Elsinore Community Facilities District No. 2005-2 (Alberhill Ranch)
Special Tax Bonds (Improvement Area A) .2005 Series A" (the "Bonds");
and
WHEREAS, there have been submitted to this Council certain
documents providing for the issuance qf the Bonds and this Council, with
the aid of its staff, has reviewed said documents and found them to be in
proper order; and
45660521.1
AGENDA !'reM NO.
PAC'=-' 0
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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 due time, form and manner as required by the laws
of the State of California, including the Act.
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. 2005-2 (Alberhill Ranch) Special
Tax Bonds (Improvement Area A) 2005 Series A (the "Bonds") in an amount not
to exceed $28,000,000 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, City Manager or
Director of Administrative Services (each, a "Responsible Officer"), are hereby.
authorized to execute the Fiscal Agent Agreement.in substantially the form
annexed hereto, with such revisions, amendments and completions as shall be
approved by any Responsible Officer, with the advice of Bond Counsel, such
approval to be conclusively evidenced by the execution and delivery thereof.
. .
SECTION ~. The Council hereby approves the Continuing Disclosure
Agreement in substantially the formannexed hereto. Any Responsible Officer is .
hereby authorized to execute the Continuing Disclosure Agreement in substantially
the form annexed hereto, with such revisions, amendments and completions as
shall be approved by any Responsible Officer, with the advice of B"ond Counsel,
such approval to be conclusivel):' evidenced by the execution and delivery thereof.
SECTION 4. 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
finality of the Preliminary Official Statement under Rule 15c2-12. Upon the
pricing of the Bonds, any Responsible Officer is authorized and directed to execute
and deliver a final Official Statement, in substantially the form of the Preliminary
4566052 LI
AGENDA ITEM NO. 31
PAOE~OF ~:bG
Official Statement, with such additions and changes as may be approved by Bond U
Counsel and' any Responsible Officer executing the same, such approval to be
conclusively evidenced by the execution and delivery thereof.
SECTION 5. The Council hereby approves the Purchase Contract, in
substantially the form annexed hereto. Any Responsible Officer is hereby
authorized to execute the Purchase Contract in substantially the form annexed
hereto, with such revisions, amendments and completions as shall be approved by
any Responsible Officer, 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 6.5%, and an underwriter's discount not greater than 2:0%
of the principal amount of Bonds.
SECTION 6. 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 in substantially the form annexed hereto, with such
revisions, amendments and completions as shall be approved by any Responsible
Officer, with the advice of Bond Counsel, such approval to be conclusively
evidenced by the execution and delivery thereof. U
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 coimection with the
sale of the Bonds' and execution and deli~ery of any and all assignments,'
certificates, requisitions, agreements, notices, consents, instruments of conveyance,
warrants and oth'er 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.
u
45660521.1
AGENDA ITEM NO. 31
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PASSED, APPROVED AND ADOPTED this
,2005.
day of
AYES:
NOES:
COUNCILMEMBERS:
COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
ABSTAIN: COUNCILMEMBERS:
Robert E: Magee, Mayor
City of Lake Elsinore
. ATTEST:
Fredrick Ray, City Clerk
City of Lake Elsinore
APPROVED AS TO FORM:
Barbara Zeid Leibold, City Attorney
City of Lake Elsinore
45660521.1
AGENDA ITEM NO. .7. ( .
PACE-L1-0F ~ ~O
STATE OF CALIFORNIA
COUNTY OF RIVERSIDE
COUNTY OF RIVERSIDE
)
. ) SS:
)
I, FREDERICK RAY, DEPUTY CITY CLERK OF THE CITY OF LAKE
ELSINORE, DO HEREBY CERTIFY that the foregoing Resolution 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: . COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
ABSTAIN: COUNCILMEMBERS:
FREDERICK RAY, CITY CLERK
CITY OF LAKE ELSINORE
(SEAL)
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AGENDA ITEM !'lv. "3 {
PACE /If OF ?-30
45660521.1
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FISCAL AGENT AGREEMENT
. ..BETWEEN
CITY OF LAKE ELSINORE
COMMUNITY FACILITIES DISTRICT NO. 2005-2- (ALBERIDLL RANCH)
AND
. UNION BANK OF CALIFORNIA, N.A.,
as Fiscal Agent
. v
DATED AS OF NOVEMBER 1;2005
. RELATING TO "
$
. CITY OF LAKE ELSINORE
. COMMUNITY FACILITIES DISTRICT NO. 2005-2 (ALBERIllLL RANCH)
SPECIAL TAX BONDS (IMPROVEMENT AREA A) 2005 SERIES A
45660210.1
ACENDA ITEM NO.
PAGE I c;
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TABLE OF CONTENTS
Page
ARTICLE I DEFINITIONS.... ...................................,............................. .......... ................... ................ I
Section 1.1. Definitions .................... .............. ....... .:.................. ................... ............................ I
ARTICLE II GENERAL AUTHORIZATION AND BOND TERMS ................................................ 10
Section 2.1. Amount, Issuance, Purpose and Nature of Bonds .............................................. 10 .
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.................................................................. II
Section 2.5. Place and Form ofPayment................................................................................ II
Section 2.6. Form of Bonds........................................................... .........................................12
Section 2.7. Execution and Authentication ............................................................................12
Section 2.8. Bond Register ...................................................................................... ........ ....... 13
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 ............................................................................................... 14
Section 2.12. 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 ofthe 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 .........................................................18
Section 3.6. Administrative Expense Account ofthe Special Tax Fund................................ 18
Section 3.7. Surplus Fund ...................................................................................................... 18
Section 3.8. Acquisition and Construction Fund.......................................:............................ 19
Section 3.9. Investments......................................................................................................... 19
ARTICLE N REDEMPTION OF BONDL......,................................................................................. 21
Section 4.1. Redemption of Bonds...................................................................................... ...21
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
Section 5.1. Warranty .....................................................................................c............:.......... 24
Section 5.2. Covenants ............;.....................,........ ................. ......... ......................................24
ARTICLE VI AMENDMENTS TO FISCAL AGENT AGREEMENT................................................ 30
Section 6.1. Supplemental Fiscal Agent Agreements or Orders Not Requiring
Bondowner Consent ........ ............. ............................................. ......................... 30
Section 6.2. Supplemental Fiscal Agent Agreements or Orders Requiring Bondowner
Consent.... ........................................................................................................... 30
Section 6.3. . Notation of Bonds; Delivery of Amended Bonds .............................................. 31
ARTICLE VII FISCAL AGENT.............................................................................................................31
Section 7.1. Fiscal Agent........................................................................................................31
Section 7.2. Removal of Fiscal Agent.................................................................................... 32
Section 7.3. Resignation of Fiscal Agent ............................................................................... 32
,45660210.1
AGENDA ITEM NO. 3 (
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TABLE OF CONTENTS
(continued)
Page
Section 7.4. Compensation and Liability of Fiscal Agent...................................................... 32
Section 7.5. Merger or Consolidation ..................................................................................... 34
ARTICLE VIII EVENTS OF DEFAULT; REMEDIES ......................:...................................................34
Section 8.1. Events of Default.................:.......................... ....... ..............................:.............. 34
Section 8.2. Remedies of Owners ...........................................................................................34
ARTICLE IX DEFEASANCE ................... .... ............................................................. ................ ........... 35
Section 9.1. Defeasance ......................................................................................................... 35
Section 9.2. No Additional Bonds.......................................................................................... 37
ARTICLE X MISCELLANEOUS .....:..... .............:............. ...................................... ............................ 37
Section 10.1. Cancellation of Bonds ..............................................................:......................... 37
Section 10.2. Execution of Documents and Proof of Ownership............................................. 37
Section 10.3. Unclaimed Moneys............:.:..............................................................................37
Section 10.4. Provisions Constitute Contract........................................................................... 38
Section 10.5. Future Contracts ................................................................................................. 38
Section 10.6. Further Assurances ............................................................................... ..............38
Section 10.7. Severability............... ..........................................:..........;......... ............................. 38
Section 10.8. Notices................ .......:. ....... ........:... ............................................................:....... 38
Section 10.9. General Authorization ........................................................................................ 39
Section 10.10. Execution in Counterparts:........................................::.......................................39
Exhibit A - Form of Bond ......:..... ................................................................. ................... ..........,............ A-I
n Exhibit B - Requisition No. I ...........................................................:....................:...........:....................B-I
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45660210.1
AGENDA ITEM NO.
PAGE l7
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FISCAL AGENT AGREEMENT
u
THIS FISCAL AGENT AGREEMENT, dated as of November I, 2005, between the City of Lake
Elsinore Community Facilities District 2005-2 (Alberhill Ranch) 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 2005-2 (Alberhill Ranch) Special Tax. Bonds (Improvement Area A) 2005 Series A.
RECITALS:
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 2005-2 (Alberhill Ranch) (the "CFD")
pursuant to the terms and provisions of the Mello-Roos Community Facilities Act of 1982, as amended,
being Chapter 2.5, Part I, Division 2, Title 5, of the Government Code of the State of California (the
_"Act"); and
WHEREAS, the Council has heretofore adopted Resolution No. 2005-62 designating portions of
the CFD as Improvement Area A (the "Improvement Area"); and
WHEREAS the qualified electors within Improvement Area A 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 $28,000,000; 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 U..
years or longer, including public infrastructure facilities or capital fees and other governmental facilities
or capital fees, which are necessary to meet increased demands placed upon the City as a result of
development or rehabilitation occurring within Improvement Area A (collectively, the "Facilities")
through the issuance of bonds in an aggregate principal amount of $ designated as the "City
of Lake Elsinore Community Facilities District 2005-2 (Alberhill Ranch) Special Tax Bonds
(Improvement Area A) 2005 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 1.1. 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 U
pursuant to Section 3.1 hereof.
45660210.1
AGENDA ITEM NO.
PAGE_1 g
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"Act" means the Mello-Roos Community Facilities Act of 1982, as amended,Sections 53311 el
seq. of the California Government Code.
"Administrative Expense Account" means the account by such name in the Special Tax Fund
created and established pursuant to Section 3.1 hereof:
"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 Bondspayable 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:
(I) 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 arid 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 ("FroHA")
Certificates of beneficial ownership
Federal Fiilancing Bank
Federal Housinu: 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
45660210.1
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AGENDA ITEM No.3 f
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U.S. Maritime Admiriistration
. Guaranteed Title XI financing
u
U.S. Department of Housing and Urban Development (HOD)
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 Svstem
Senior debt obligations
Federal Home Loan Mortgage Corporation ("FHLMC" or "Freddie Mac")
Participation certificates
Senior debt obligations
u
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 Svstem CM, - Consolidated svstem-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 Mm, 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 (I) 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.
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45660210.1
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AGENDA ITEM NO. .3 I
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(1
. (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 ofthe 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) 02% 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 agre.ement and thereafter to invest such funds
pursuantto this Fiscal Agent Agreement.
(8) Commercial paper rated, at the time of purchase, "Prime -. ]" by Moody's and "A-I " 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.
n (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 - I" or "A3" or better by
Mo.ody's and "A-I" or "A" or bett,,?,by Standard & Poor's.
(II) 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 el seq. or 31 C.F:R. 350.0 et seq. in such securities
is created for the benefit of the Fiscal Agent; and
45660210.1
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AGENDA ITEM NO. 3 (
PAGE....d..LOF d.~O
(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 th~ weekly and will liquidate the U
collateral securities if any deficiency in the required' collateral percentage is not restored within '
two business days of such valuation; and
, I
(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%
(I 2) 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 oftheCFD 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 tlie 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 nam~s any Bond is U
registered.
"Bonds" means the CFD's $ Special Tax Bonds (Improvement Area A) 2005 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 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,
"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 2005-2 (Alberhill Ranch)
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 U
Internal Revenue Service interpreting and construing it.
45660210.1
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ACENDA ITEM NO. '3 I
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"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.
"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)
& Poor's.
Pre-refunded .municipal bonds rated "Aaa" by Moody's and "AAA" by Standard
n
(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 muD) - 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. . .
45660210.1
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AGENDA ITEM NO. 2:, {
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"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 U
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 I of each year and ending on the next
following June 30.
"Improvement Area A" means that portion of the CFD designated as Improvement Area A.
"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:
(I) is, in fact, independent and not under the domination ofthe 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 U
Fund pursuant to Section 3.1 hereof. '
"Interest Payment Date" means each March'l and September 1, commencing March 1, 2006,
provided, however, that, if any such day is hot 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 forthe 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:
(I) the principal amount of' all Outstanding B~nds payable in such ,Bpnd Year either at
maturity pr 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: U
45660210,1
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ACENDAITEMNO. ..3 (
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(1)
10.1 hereof;
Bonds theretofore cancelled or surrendered for cancellation in accordance with. Section
(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 this Fiscal Agent Agreement; and .
(3) Bonds which have been surrendered to the Fiscal Agent for transfer or exchange pursuant
to Section 2.9liereof 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, finns, corporations, partnerships, associations, trusts, public
bodies and other entities.
"PrinCipal Accounf' ~eans 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 <ir 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 miinicip'al orgovernm~ntal obligations' are issued.
n
"Project" means those public facilities described in the Resolution of Fonnation which are to be
. acquired or constructed within Improvement Area A, 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 fonnation of the CFD, and to pay any other "incidental expenses" of the
CFD, as such tenn 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.
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45660210,1
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ACENDA ITEM NO. '3 (
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"Reserve Account" means the account by such name created and established in the Special Tax U'
Fund pursuant to Section 3.1 hereof. '
"Reserve Requirement" means, as of any date of calculation, an amount equal to the lowest of (1)
10% of the original proceeds of the Bonds, less accrued interest, if any, less original issue discount, if
any, plus original issue premium, if any, 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. 2005c_ adopted by the Council on September
13,2005, 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
Improvement Area A in accordance with the Resolution of Formation, the Act and the voter approval
obtained at the September 13, 2005 election in Improvement Area A 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 prepayments thereof and 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.
"Special Tax Fund" means the fund by such name created and established pursuant to Section 3.1
u
"Supplemental Fiscal Agent Agreement" means any supplemental fiscal agent agreement
amending or supplementing this Fiscal Agent Agreement.
hereof.
"Surplus Fund"'means the fund by such name created aild established pursuant to Section 3.1
"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, 20_, September I, 20_,
September 1,20_ and September 1, 20_.
"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 "fthe CFD.
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45660210.1
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AGENDA ITEM NO. :3 (
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ARTICLE II,
,
GENERALAUTHORIZA TION AND BOND TERMS
Section 2.1. Amount, Issuance, Purpose and Nature, of Bonds. Under and pursuant t~ 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
iI;ldebtedness 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
the Special Taxes and the other amounts in the Special Tax Fund (other than amounts in the
Administrative Expense Account).
n
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 speci~l 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 ofthe 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 avail~ble 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
(\
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AGENDA ITEM NO. "3 (
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Agreement or any Supplemental Fiscal Agent Agreement. Notwithstanding any provision contained in .u
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. .
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 2005-2 (ALBERHILL RANCH) SPECIAL TAX BONDS (IMPROVEMENT AREA A) 2005
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, commencing March l, 2006.
Maturity Date
(SeDtember I)
PrinciDal Amount
Interest Rate
u
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 3D-day months.
Section 2.5. Place and Form of Payment. The Bonds shall be payable both as to principal
and interest, and asto any premiums upon the redemption thereof, in lawful money of the United Statesof
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 U
office of any successor Fiscal Agent. Interest on any Bond shall be payable from the Interest Payment .
4S66Q2\O.\
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AGENDA ITEM NO. :3 i
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(',
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Date next preceding the date of authentication of that Bond, unless (i) 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
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
Fisca] Agent on or before the applicab]e Record Date from an Owner of $],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 Fisca] Agent Agreement to the contrary, the CFD may, in
its sole discretion, elect to issue the Bonds in book-entry form.
i
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 applicab]e 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 Fisca] 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 Fisca] 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 Autheutication. The Bonds shall be signed onbeha]f.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 anyone 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.
45660210.1
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ACENDA ITEM NO. 31
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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 U
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
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 ~ppears 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.
U
Section 2.10. Mutilated, Lost, Destroyed or Stolen Bonds.' If any Bond shall become
mutilated, the CFD shall execute, arid 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.
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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 recitai contained
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 Fisca] 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 Fisca] 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 Fisca] Agent shall have no responsibility or obligati~n 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 Fisca] Agent shall have no respimsibi]ity 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 Owneras.shown in the registration books kept by the Fisca] 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 Fisca] Agent, of any amount with respect to prinCipal of,
premium, if any, or interest due with respect to the Bonds. The CFD and the Fisea] Agent may treat and
consider the Person in whose name each Bond is registered in the registration books kept by the Fisea]
Agent as the holder and absolute owner of such Bond for the purpose of payment of the prineipa] 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 Fisca] 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 authorizedrepresentative
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 ]0.2 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 Fisca] 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
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Representative of the CFD are hereby authorized to take any other actions, not inconsistent with this U
Fiscal Agent Agreement, to qualify the Bonds for the Depository's book-entry program.
Section 2.14. Transfers Outside Book-Entry System. lri 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 ihe name of the Nominee, all
payments withTespect 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.
ARTICLEJII
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:
u
(I) The Community Facilities District 2005-2 Special Tax Fund (the "Special Tax Fund") (in
which there shall be established and created an lriterest Account, a Principal Account, a Redemption
Account, a Reserve Account and an Administrative Expense' Account);
(2) The Community Facilities District 2005-2 Surplus Fund (the "Surplus Fund"); and
(3) The Community Facilities District 2005-2 Acquisition and Construction Fund (the
"Acquisition and Construction Fund") (in which there shall be established a Costs ofIssuance 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 in trust 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 U
and deposited and transferred as follows:
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(I) $ shall be transferre~ to the CostsofIssuance Account of the Acquisition and
Construction Fund established hereunder for disbursement in accordance with Section 3.8 below; and
(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 Inter~st 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 Ta~ Fundon the dates and in the amounts set
forth in the following Sections, in the following order of priority, to:
(a) The Interest Account ofthe Special Tax Fund;
(b) The Principal Account ~f the Special Tax Fund;'
(c) The Redemption Account of the Speci~1 Tax Fund;
'( d) 'The Rese;"e Account ofthe Special Tax Fund;
n
(e)
The Administrative Expense Account of the Special Tax Fund; and
(I) 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 an'd 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 fo~ any lawful purpose.
Section 3.3. Iuterest Accouut 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 Iriterest 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 I and September I, 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: '" ,
(I) . 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 in;tallment o'f interest due on the
Bonds on said Interest Payment Date and any installment of interest due on apre'vious Interest Payment'
(',
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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.' U
(2) To the Principal Account, an amount. such that the balance in the Principal Account five
Business Days prior to September I of each year, commencing September 1,2006'shall at least equal the
principal payment due on the Bonds maturing on such September I and any principal payment due on a
previous September I. which remains unpaid. Moneys in the Principal Account shall be used for the
payment ofthe principal of such Bonds as the same become due at maturity:
Section 3.4.
Redemption Account of the Special Tax Fund.
(I) On each September I on which a Sinking Fund Payment is due, after the deposits have
b~en 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 I; 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 (I) 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 U
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 fOE 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 amoU1)t 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 \0 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 r~deemed 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 p~chase' Outstanding Bonds in the manner hereinafte! 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
amoUJit reserved in the Interest Account of the Special Tax FUnd for the payment of interest on the next
following Interest Payment Date. . . .
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Section 3.5. Reserve Account of the Speci!!1 Tax Fund. There shall be maintained in the
Reserve Account of the Special Tm(Fund an amount eq)lal to the. Reserve Requirement. The amounts in
the Reserve Account shall be applied as follows: '
(I) 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 at1I)ual Special Tax levy to the extent of th) 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 Reserv,c 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 I!ond Year for
such issue. Moneys in the Reserve Account in excess of the Reserve Requirement not transferred in
accordance with the precedlng provisions of this paragraph shall be withdrawn from the Reserve Account
on the fifth Business Day before each March I 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 f~ded 'and, thereafter, to the Interest Account of the Special Tax F~nd. .,
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 Aflministrative 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 I, 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 amoUllt of the levy of Special
Ta:<es for such Fisc":] Year pursuant to Section 5.2(2) hereof. Moneys deposited in the SUfplus Fund shall
45660210.1
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ACENDA ITEM NO. S (
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be transferred by the Fiscal Agent at the Written Request of the CFD (i) to any other reserve account U
established in comiection 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 ofthe 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 ofthe 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 iax of individuals and corporations under the Code) or in Authorized
Investments at a yield not in excess of the yield on the is.sue 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 f,deral 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 aud Construction Fund.
(I) 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 U
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
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, U
and (ii) all other investment earnings shall be deposited in the Interest Account of the Special Tax. Fund; .
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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:
. (I) ,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 thari those set forth in the Tax
Certificate.
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(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 .Jnvestment 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 oftheBonds.
(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) ofthe 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 anyone or more of its affiiiates, whether it or such affiliate
is acting as an agent ofthe Fiscal Agent or for any third person or dealing as principal for its own account.
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. ARTICLE IV
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REDEMPTION OF BONDS
Section 4.1.
Redemption of Bonds.
(I) Optional Redemption. The' Bonds are subject to redemption prior to maturity at the
option of theiCFD on any date on or after September I, 2015, 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 I, 2015 through August 31, 2016
September I, 2016 through August 31, 2017
September I, 2017 and thereafter
102.0%
101.0
100.0
.(2) Special Mandatorv RedemptIOn from Special Tax Prepavrnents. 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
September 1, 2010 through August 31, 2015
September 1, 2015.and thereafter.
103.0%
102.5
As provided for in
optional redemption
u
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 Mandatorv 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 Improvement Area. A 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) Mandatorv Sinking Fund Redemption. The Bonds maturing on September 1, 20--"
September 1, 20_, September 1, 20-,- and September. 1, 20_ are subject to.mandatory redemption, in
part by lot, on September I in each year commencing September 1, 20_, with respect to the Bonds
maturing on September 1,20_, commencing September 1,20_, with respect to the Bonds maturing on
September 1,20_, commencing September 1,.20_, with respect to the Bonds maturing on September 1,
20_, and commencing September 1,20_, with respect to the Bonds maturing on September 1,20_,
from the Sinldng Fund Payments that have been deposited into the Redemption Account at a redemption
price equal to the principal amount thereof to be redeemed, wiihout 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) U
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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.
Bonds Maturing on September 1,20_
Redemption Date
(September I)
Principal AmoUnt
20
20
20_
20_ (maturity)
$,000
,000
,000
,000
Bonds Maturing on September I, 20_
Redemption Date
(September I)
Principal Amount
20
20
20_ (maturity)
$,000
,000
,000
Bonds Maturing on September 1,20
Redemption Date
. (September I)
Principal Amount
20
20
20_
20
20_ (maturity)
$,000
,000
,000
,000
,000
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Bonds Maturing'on September I, 20_
u
Redemption Date
(Seotember ])
Princioal Amount
20
20
20
20
20_ (maturity)
$,000
,000
,000
,000
,000
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, U'
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 identitY 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
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.
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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 telecopyor 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 dissemi~ate 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 an); 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 Of 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 datefixed.for redemption no Owner of any of the Bonds, or portions thereof so
designated for redemption, shilll be entitled to any of the benefits of this Fiscal Agent Agreement or any
Supplemental Fiscal Agent Agreement, or to any other rights, except with respect to payment of the
redemption price and interest accrued to the ~edemption date from the amo~nts 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
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AGENDA ITEM NO.
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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: U
(I) 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.
I
The CFD covenants that it will duly and punctually payor 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 thisFiscal 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) Levv o'f 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 (I) 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. ' .
u
(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 laterthan March I and August I
of each year, whether or not any owner of the property within Improvement Area A 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 I (with
respect to the August I 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 Improvement Area A 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 prQperty owner in Improvement Area 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:
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45660210.1
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(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 determiried under
clause (b) below or otherwise under Section 53356.6 of the Act.
I
I
I
,
. .
(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 fo~ 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 ~r any portion 'of.the Special Taxes levied o~ to be
levied on any parcel in Improvement Area f!... 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.
n
(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 otherrecords and accounts ofthe 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. .
(6) Tax Covenants. .
. (a) Special Definitions. When used in this subsection, the following terms have the
following meanings:
"Code" means the Internal Revenue Code of 1986.
"Computation Date" has the meaning set forth in section I. 148- I (b) of the Tax Regulations.
"Gross Pro~eeds" means any proceeds as defined in section 1.148- I (b) of the Tax Regulations
(referring to sales, investment ~nd transferred proceeds), and any .replacement proceeds as defined in
section I. I 48- I (c) of the Tax Regulations, of the Bonds.
"Investment" has the meaning set forth in section I. 148- I (b) of the Tax Regulations.
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45660210.1
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ACENDA ITEM NO.
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, "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 U
governmental purposes of that series of Bonds,
"Rebate Amount," has the meaning set forth in section 1.148-1(b),ofthe Tax Regulations:
"Tax Regulations" means the United States Treasury Regulations promulgated puisuant to
sections 103 and 141 through 150 of the Code,
"Yield" of any Investment hils 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 faino 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' U
covenants in this subsection:
(c) Private Use and Private Pavrnents. 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
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 thana state or local government) who is treated as
using any Gross Pr~ceeds 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
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45660210,1
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AGENDA ITEM NO. 31.
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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 s,!ch 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
"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 pennit 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 Federallv 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 l49(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) 1Jle CFD. shall aCyount for all Gr<?ss 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
discharged. However, to the extent permitted by law, theCFD may.commingle (and may
allow.the CFD to commingle) Gross Proceeds of Bonds with its other monies, provided
. 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 A'J?ount on such date; and (ii) in the case of any
.45660210.1
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AGENDA ITEM NO. ~ I
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other Computation Date, ninety percent (90%) of the Rebate Amount on such date. In all U"
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.
Notwithstandmg 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.
, (j) 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 U
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 <ir 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.
(I) Closmg 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 maxiinum 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
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ACENDA ITEM NO. ~ (
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it shall not initiate proceedings io redu~e 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 ofland and improvements
existing in Improvement Area A as of the July I preceding the reduc'tion, 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 hnprovement Area A) 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, 2005 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). - , .,
(io) 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. Agreemeuts or Orders Not Requiring
Bondowuer Consent. The CFD may from time to time, and at any time, without notice to orconsent of
any of the Bondowners, adopt Supplemental Fiscal Agent Agreements for any of the folloWing purposes:
" " .'
(I) 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
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 maoner 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
45660210.1
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AGENDA ITEM NO. '9 I
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(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 U
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 thana 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 anytime 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 U
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
such notice, and shall specifically consent to and approve the adoption thereof by the CFD substantially in
the fOml 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 U
and enforced hereunder, subject in all respects to such modifications and amendments.
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Section 6.3. Notation of Bonds; Delivery of Amended Bonds. After the effective date of
any action taken as hereinabove provided, the CFD may deteimine 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 i~ 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, NA., 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 DefauIt 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
Age'nt Agreement, and to provide for the authentication of Bonds, and shall perform all othe~ 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 FiscalAgent Agreement'shall"not be construed as duties. The Fiscal Agent may
execute any of the powers herelinder or perform any duties hereunder either directly or by or through
agents or attorneys, and the Fiscal Agent shall notbe 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 ~uthorized 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 accorda~ce 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 .
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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 U
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 apppintment 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, U
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 judgement made in good faith by a
reasonable officer, unless it shall be proved that the Fiscal Agent was n~gligent in ascertaining the
.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, empl~y~es and agents, shall be subject to the provisions of this Section 7.4.
The recitals of fact and all promi.ses, 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 U
or presented by the proper party or parties. The Fiscal Agent may consult with counsel, who may be
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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 s~ive 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 ,!. 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
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.
"event of default'~:
Events of Default. Anyone or more of the following events shall constitute an
(a) Default in the due and punctual payment of the principal of or redemptiofl
premium, if any, on any Bond when and as the saine shall be"come 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 pay,!ble; or
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AGENDA ITEM NO. 3 t
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(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 U
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 ofthe 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 oftheCFD'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, I (c) unless a responsible officer shall have actual knowledge thereof or the Fiscal Agent shall
have received written notice at its Principal Office. '
Section 8.2. Remedies of Owners. Follo~ing the occurrence of an event of default, any
Owner shall have the right for the equal benefit and protection of all Owners similarly situated: '
. ,
(I) 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 ol!t 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 U
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 paym,ent by virtue of the contract embodied in the Bonds and in this 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 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.
U
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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 s,uch principal and interest without
preference or priority of pnncipal 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 payor 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 imd 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 io have been paid within' the meanin'g expressed in the
first paragraph of this Section if such Bond is paid in anyone 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 amoimts
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
(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 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, exc'ept for the
obligation of the Fiscal Agent to payor 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 ele,ction shall be filed with the Fiscal Agent' notless 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
("'\
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independent nationally recognized certified public accountant stating its opinion as to the sufficiency of U
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 tbe same shall become due and payable, and an opinion of Bond Counsel
(which may rely ujJ~n tlie 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 witb an
advance refunding to be effected under (c) above,.(i) such verification. report shall expressly state that tbe
adequacy of the amounts deposited with the bank under (c) above to accomplish the refunding relies
solely on the initial escrowed investments and tbe maturity principal thereof and interest income thereon
and does not assume performance under or compliance witb 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 die escrow agieement, the terms of the escrow agreement shall be controlling.
Upon a defeasance, the Fiscal Agent, upon request of the CFD, shall release tbe rights of tbe
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 sl!ch 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 tbe 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 bytbe CFD, stating that the defeasance has occurred.
Section 9.2. No Additional Bonds. TheCFD shall not issue bonds, notes or other forms of U
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 tbe Outstanding
Bonds.
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. Execntion 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 l?e in any number of concurrent instruments of
similar tenor may be signed or executed by such Owners in person or by tbeir attorneys appointed by an
instrument in writing for that purpose, or by the bank, trust company or other depository for such Bonds.
Proof of tbe 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:' .
(I) The fact and date of the execution by any Owner or his or her attorney of any such U
instrument and of any instrument appointing any such attorney, may be proved by a signature guarantee
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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 contaiIied in this Fiscal Agent Agreement shall be construed as linriting 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 tins Fiscal
Agent Agreement to the contrary notwithstanding, any money held by the Fiscal Agent in trust 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 free from trust, 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; 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 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 provlSlons 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.
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After the issuance and delivery of the Bonds this Fiscal Agent Agreement shall be irrepealable,
but shalr'be subject to modifications to the extent and in the manner provided in this Fiscal Agent U
Agreement, but tono greater ext~nt 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
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 imy 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 re~ain valid arid the BondoWners shall retain all valid
rights and benefit~. accorded to the~ 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 U
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.
. ..
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 Fis'cal Agent Agreement'necessary or appropriate to carry the same into effect.
.; 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.
.j"
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45660210.1
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AGENDA ITEM NO. 31
"^Gl'_ e;" OF ~1o
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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 2005-2
(Alberhill Ranch), has caused this Fiscal Agent Agreement to be signed by its Mayor and Union Bank 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 2005-2 (ALBERHILL
RANCH)
UNION BANK OF CALIFORNIA, N.A., as Fiscal
Agent
By:
Its: Authorized Officer
,.
45660210.1
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EXIDBIT A
FORM OF BOND
No.
$
UNITED STATES OF AMERICA
STATE OF CALIFORNIA
COUNTY OF RIVERSIDE
CITY OF LAKE ELSINORE
COMMUNITY FACILITIES DISTRICT 2005-2 (ALBERHILL RANCH)
SPECIAL TAX BOND (IMPROVEMENT AREA A) 2005 SERIES A
INTEREST RATE
MATURITY DATE
DATED DATE
CUSIP NO.
%
September 1,_
,2005
REGISTERED OWNER: CEDE & CO.
PRINCIPAL AMOUNT: AND NO/ 100 DOLLARS
CITY OF LAKE ELSINORE COMMUNITY FACILITIES DISTRICT 2005-2 (ALBERHILL
RANCH) (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 I and September I of each year (each, an "Interest Payment Date"), commencing
March I, 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
class mail, postage prepaid, or in certain circumstances described in the Fiscal Agent Agreement by wire
45660210.1
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AGENDA ITEM NO. ], (
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transfer to an account within the United States, to the Registered Owner hereof as of the close of business
on the fifteenth day of the month preceding the . month inwhich the Interest Payment Date occurs (the
"Record Date") at such Registered Owner's address as it appears on the registration books mainiained 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 2005-2 (Alberhill .Ranch) Special Tax Bonds (Improvement Area A) 2005 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 area designated as Improvement Area A, 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. October II, 2005
and a Fiscal Agent Agreement, dated as of November 1,2005 (the "Fi~cal 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 paymenJ 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 1,2015, 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, 20 I 5 through August 3 1, 2016
September 1, 20 I 6 through August 31, 20 I 7
September I, 2017 and thereafter
102.0%
101.0
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
(\
Match 1, 2006 through August 31, 20 I 0
September I, 2010 through August 31, 20 IS
September I, 20 IS and thereafter
103.0%
102.5
As provided for in
optional redemption
45660210.1
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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 Improvement Area
A 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 I, 20_, September I, 20_, September I, 20_ and
September I, 20_ are subject 'to mandatory redemption, in part by lot, on September I in each year
commencing September I, 20_, September I, 20-, September I, 20_ and September I, 20_ are
subject to mandatory redemption, in part by lot, on September I in each year commencing September I,
20_, with respect to the Bonds maturing on September I, 20_, commencing September I, 20_, with
respect to the Bonds maturing on September I, 20~, commencing September'l, 20--, with respect to the
Bonds maturing on September I, 20-, and commencing September I, 20_, with respect to the Bonds
maturing on September I, 20_; 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 U
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 I, 20_
Redemption Date
(September ])
Principal Amount
20
20
20
20_ (maturity)
$0,000
,000
,000
,000
Bonds Maturing on September I, 20_
Redemption Date
(September ])
Principal Amount
20_
20
20_ (maturity)
$0,000
,000
, ,000
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45660210.1
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Bonds Maturing on September 1,20_.
Redemption Date
(September D
Principal Amount
20_
20_
20_
20_
20_ (maturity)
$,000
,000
,000
,000
,000
Bonds Maturing on September 1,20_
Redemption Date
(September I)
Principal Amount
20
20
20
20
20 (maturity)
$,000
,000
',000
,000 .
,000
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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
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.
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The Fiscal Agent shall not be required to register transfers or make exchanges of (i) any Bonds
for a period of IS days next preceding any selection of the Bonds to be redeemed, or (ii) any Bonds
chosen forredemption.
45660210,1
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ACENDA 'TEM NO. :5 (.
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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 U
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 SUBDNISIONS 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
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.
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IN WITNESS WHEREOF, City of Lake Elsinore, Community Facilities District 2005-2
(AlberhilI Ranch) has caused this Bond to be dated as of the DatedDate, 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 2005-2 (AlberhilI Ranch) 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]
A TrEST:
City Clerk of the City of Lake Elsinore, acting as
the legislative body of City of Lake Elsinore
Community Facilities District 2005-2 (AlberhilI
(\ Ranch)
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[FORM OF FISCAL AGENT'S CERTIFICATE
OF AUTHENTICATION AND REGISTRATION]
This is one ofthe Bonds described in the within-defined Fiscal Agent Agreement.
Dated:
UNION BANK OF CALIFORNIA, NA, as Fiscal
Agent
45660210.]
By:
Its: Authorized Signatory
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ACENDA ITEM NO. '2;,1
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[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 Assigument 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. 'I
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EXIDBIT B
REQUISITION NO. I
CITY OF LAKE ELSINORE
COM)\flJNITYFACILITIES DISTRICT 2005-2 (ALBERHILL RANCH)
REQUISITION FOR DISBURSEMENT OF PROJECT COSTS
Union Bank of Califomia~ N.A. is hereby requested topay from the Acquisition and Construction
Fund of the Community Facilities District 2005-2 (Alberhill Ranch); established by the Fiscal Agent
Agreement dated as of November I, 2005, between the Fiscal Agent and City of Lake Elsinore
Community Facilities District 2005-2 (AlberhillRanch), 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 anr prior request for payment. The conditions to the release of this amount from the
Community Facilities District 2005-2 (Alberhill Ranch) 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
attachnient upon, or stop notice or claim affe~ting 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 2005-2 (ALBERHILL
, RANCH)
By:
Authorized Representative
45660210.1
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CONTINUING DISCLOSURE AGREEMENT
(City of Lake Elsinore Community Facilities District No. 2005-2 (Alberhill Ranch))
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This Continuing Disclosure Agreement (the "Disclosure Agreement"), dated as of
November I, 2005, is executed and delivered by the City of Lake Elsinore Community Facilities
District No. 2005-2 (Alberhill Ranch) (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. 2005-2 (Alberhill
Ranch) Special Tax Bonds (Improvement Area A) 2005 Series A (the "Bonds"). The Bonds are
being issued pursuant to provisions of a Fiscal Agent Agreement, dated as of November I, 2005
(the "Fiscal Agent Agreement"), by and between the CFD and UniOn Bank of California, N.A.,
as fiscal agent (the "Fiscal Agent"). The CFD and the Dissemination Agent covenant and agree
as follows:
SECTION I. 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 Participatirig 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
meamngs:
u
"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 ofthis 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. 2005-2 (Alberhill
Ranch), a community facilities district organized and existing under. the laws of the State of
California, and such area ofland comprising that community facilities district.
"City" means the City of Lake Elsinore, California.
"Disclosure Representative" shall mean the Mayor 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.
"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.
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"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 R,epository:
. .
"Rule" shall mean RuleI5c2-l2(b)(5) adopted by the Securities and Exchange
Commission under the Securities Exchange Act of 1934, as the same may be amerided from time
to time.
"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 ofthe date ofthis Agreement, there is no State Repository.
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SECTION 3. Provision of Annual Reports.
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(a) The CFD shaH, 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 J.une 30,
200S, 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 tile 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
Dissemination Agent and Fiscal Agent may conclusively rely upon such certification ofthe CFD
and shall have no duty or obligation to review such Annual Report.
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(c) If the Dissemination Agent is unable to verify that an Annual Report has U
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 i~ 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 Dis(;los~~e Agreement, stating the date it was
provided and listing all the Repositories to which i! 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 tlie City's audited
financial. statements are not available by the time the Annual Report is required to be filed
pursuant to Section3(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 U
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 Improve~ent Area A of the' CFD, showing the
total assessed valuation for all land and the total assessed valuation for all improvements within
Improvement Area A of the CFD. and distinguishing between the' assessed value of developed
property and u~developed property. . ' . , .
(iv) , Identification of each parcel within Improvement Area A of 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 Improvement
Area A of the CFD and the principal amount of prepayments of the Special Tax with respect to
the CFD for the prior Fiscal Year. . .,
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(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 is~ued in Imp~ovement Area A ofthe CFD during
the prior FiscalYear. .
(ix) The amount of Special Taxes generated by the developed parcels and
undeveloped parcels within Improvement Area A of 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.
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(a) Pursuant to the provisions of this Section 5, the CFD shall give, or cause
t~ be given, notice of the occurrence of any of the following' events with respect to the Bonds, if
material:
I.
2.
3.
4.
5.
6.
7.
8.
9.
(\ 10.
45660267.1
principal and interest payment delinquencies;
non-payment related defaults;
modifications to rights of Bondholders;
optional, contingent or unscheduled bond ca)ls;
defeasances;
rating changes;
adver~e tax opinions or events adversely affecting the tax-exempt status of
the Bonds; . .
unscheduled draws on the debt servIce reserves reflecting financial
difficulties;
unscheduled draws on credit enhancements reflecting financial
difficulties;
substitution of credit or liquidity providers, or their failure to perform;
4
AGENDA ITEM NO.
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11. release, substitution or sale of property securing repayment of the Bonds.
(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 (t) 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 thereot). 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.
u
(d) If the CFD has determined that knowledge of the occurrence of a Listed
Event would be material under applicable federal securities la~s;the CFD shall promptlynotify U
the Dissemination Agent in writing. Such notice shall instruct the Dissemination Agent to report
the occurrence pursuant to subsection (t).
(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 (t).
(t) 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( t)." .
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 U
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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 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 l5hter into any such amendment that modifies or increases its duties or
obligations hereunder,'and any provision of this Disciosure Agreement may be waived, provided
that the following conditions are satisfied:
(a) If the amendment or waiverrelates to the provisions of Sections 3(a), 4, or
Sea), 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 ofthe 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
ope~ating 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
45660267.1
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AGENDA ITEM NO. ~ t
PAtiE-.:z.LOF a~a..
no obligation under this Agreement to update such'information or include it in any future Annual U
Report or notice of occurrence of a Listed Event
SECTION 1O~ 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
. 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 ahd 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 I I, Duties. Immunities and Liabilities of Fiscal Agent and Dissemination
A'gent 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 U
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 }Vhich 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 Agentshall 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.
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SECTION 12. Notices. Any notices or communications to or among any of the parties
to this Disclosur,e Agreement may be given as follows:
To the. City: City of Lake Elsinore
130 South Main Street
Lake Elsinore, California 92530
Attn: City Manager
Fax: (909) 674-3124
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
Fax: (213) 972-5676
Fax: (213) 972-5694
Any person may, by written notice to the other persons listed above, desigllate 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.
45660267.1
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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 U
same instrument.
45660267.1
CITY OF LAKE ELSINORE COMMUNITY
FACILITIES DISTRICT NO. 2005-2
(ALBERHILL RANCH)
,~
By
City Manager of the City of Lake Elsinore
UNION BANK OF CALIFORNIA, N.A., as.
Dissemination Agent and Fiscal Agent
By
Authorized Officer
U
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EXHffiIT A
NOTICE TO REPOSITORIES OF FAILURE TO FILE ANNUAL REPORT
Name of Obligated Party: City of Lake Elsinore Community
Facilities District No. 2005-2 (Alberhill Ranch)
Name of Bond Issue: City of Lake Elsinore
Community Facilities District No. 2005-2 (Alberhill Ranch)
Special Tax Bonds (Improvement Area A) 2005 Series A
Date ofIssuance: , 2005
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 November 1, 2005, with respect to the Bonds. The CFD anticipates that the Annual Report
will be filed by
Dated:
UNION BANK OF CALIFORNIA; N.A., .
on behalf of CFD
cc: Issuer
.., '..
45660267.1
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AGENDA ITEM NO. ~ l
PAGE IS OF d30
$
City of Lake Elsinore
Community Facilities District No, 2005-2 (Alberhill Ranch)
Special Tax Bonds (Improvement Area A) 2005 Series A
u
Purchase Contract
,2005
City of Lake Elsinore Community
Facilities District No. 2005-2
(Alberhill Ranch)
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. 2005-2 (Alberhill
Ranch) (the "Distric('). Upon the acceptance hereof by you, this offer will be binding upon the
District and the Undenyriter. 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) U
delivered to you at any time prior to the acceptance hereofby 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), imd
the District hereby agrees to sell and deliver to the Underwriter, $ aggregate principal
amount of its Special Tax Bonds (Improvement Area A) 2005 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 March 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 U
45660522.1
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ACENDA ITEM NO. ~ (
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Chapter 2.5, Part I, Division 2, Title 5 of tl:1e Government Code of the State of California (the
"Bond Law") and a Fiscal Agent Agreement, dated as of.November I, 2005 (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 Improvement Area A of
the District, funding a reserve account for the Bonds, funding the cost of capitalized interest
through September I, 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 ,2005 (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 November 1,2005 (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
45660522.1
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and approved for distribution by the District as the Underwriter may 'reasonably request in order
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 municipili 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 ariy 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.
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(e), To. the best af its knawledge, all, autharizatians" appravals, licenses,
permi'ts, cansents and arders af any gavernmental autharity, legislatiye bady, baard, agency ar
cammissian having jurisdictian af the matter which are required far the due autharizatian by, ar
which wauld canstitute a canditian' precedent to. ar the absence af which wauld materially
adversely affect the due perfarmance by, the District af its abligatians in cannectian with the
issuance af the Bands under the .Basic Dacuments have been duly abtained, except far such
appravals, cansents and orders as may be required under the Blue Sky ar securities laws af any
state in cannectian with' the affering and sale af the Bands; except as described in ar
cantemplated by the Official Statement, all autharizaiians; appravals, licenses, permits, cansents
. ,. ,
and arders af any gavernmental authority, baard, agency ar cammission having jurisdictian af
the matters which ar~ required far 'the due autharizatian by, ar which wauld constitute a
canditian precedent to. or the absence af which wauld materially adversely affect the due
, performance by, the District af its abligatians under the Fiscal Agent Agreement have been duly
abtained. '
(1) , The Bands when issued will canfarm to. the descriptians thereof cantained
in the Official Statement under the captians "INTRODUCTORY STATEMENT" and "THE
BONDS"; and the Basic Dacuments when executed ,and delivered, will canfarm to. the
descriptians thereaf cantained in the Official Statement under the captians "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 Bands, when is~ued, authenticated and'delivered in accardance with
the Fiscal Agent Agreement, and said to. the Underwriter as provided herein, will be validly
issued and, autstanding abligatians af the District" entitled to. the be~efits af the Fiscal Agent
Agreement, and upon such issuance and delivery, the Fiscal Agent Agreement will provide, far
the benefit afthe awners fram time to. time afthe Bonds, the legally valid and binding pledge af
and lien and security interest it purparts to. create. '
, ' (h) As of the date hereaf, there' is no.' actian, suit, praceeding, inquiry ar
investigatian, natice af which has been served an the District, ai law ar in equity befare ar by
any caurt, government agency, public baard ar body, 'pending ar to. the best knawledge of the '
afficer af the City executing this Purchase Cantract an behalf af the District, threatened against
the District, affecting the existence af the District, ar affecting ar seeking to. prohibit, restrain ar
enjain the sale, issmmce or delivery af the Bands ar the pledge and lien an the Special Taxes
, pursuant to. the Fiscal Agent Agreement, ar cantesting ar affecting as to. the District the validity
ar enfarceability af the Band Law, the Bon9s or, the Basic Documents; ar cantesting the tax-
exempt status, af interest an the Bands, or contesting the completeness ar accuracy pf the,
Preliminary Official Statement ar the Official,Statement,ar contesting the powersafthe District
far the issuance af the Bands" ar the execution and delivery ar adaptian by, the, District af the
Basic Dacuments, or in any way contesting ar challenging the consummation afthe transactians
cantemplated hereby ar thereby; gar, to. the best knawledge afthe District, is there any basis far
any such actian, suit, proceeding, inquiry or investigatian, wherein an unfavarable decision,
ruling ar finding wauld materially adversely affect the validity af the ,Band Law, as to. the
District, ar the autharizatian, executian, delivery ar perfarmance by the District af the Bands or
the Basic Dacuments. ,
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(i) The District will furnish such information, execute such instruments and U
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 arid 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 ofthe interest on the Bonds.
(j) 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 ~ade, not,misleading. '.
. (k) At the time of the Distnct'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; U
provided, . however, that these representations and warranties of the District shall' apply only to
the information contained iiI the Official Statement relating to the District.
. (I) 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 iri 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 ariy 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 theyw'ere made, not misleading, the District shall notify the
Underwriter thereof, ana ifin the opinion of the Underwriter such event requires the preparation'
and publication of a supplement'or amendment to the Officiai Statement, the District will at its U
expense prepare and furnish to the Underwriter a reasonable number of copies of such
45660522.1
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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 ofthe interest on the Bonds.
(0) Any certificate. si~ed 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 8:00a.m., Los Angeles time, on , 2005, or on such earlier
date or as soon thereafter as practicable, as may be mutually agi-eed 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 relianc'e
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
n shall also be subject to the following additional conditions:
45660522.1
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AGENDA ITEM NO. 3(
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(a) The representations and warranties ofthe District 'contained herein shall be U
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;
(bY 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 9pinion of the Underwriter materially impairs the
investment quality of the Bonds;
(e) At 'iliprior to the Closing, the Underwriter shall have received copies of
each of the following documents: . "
(I) 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
u
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 ofthe City, as Special Counsel for,the District in substantially
the form attached hereto as Exhibit C; ,
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AGENDA ITEM NO. .3 {
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(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, imd 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 an 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 ofthe Bonds;
(\ , (iii) Due Authorization. Execution andDeliverv - assuming due
authorization, execution and delivery by the District, the Fiscal Agent Agreement is the valid,
legal and binding agreement of the Fiscal Agent, enforceable in ac~ordance 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;
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AGENDA ITEM NO.
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(13) C A certificate of the Fiscal Agent, dated the date of Closing, (\
certifying that, subject to the limitations provided herein, the Fiscal Agent represents arid ~
warrants and agrees with the Underwriter that as of the date of Closing:
(i) Due Organization and Existence - the Fiscal Agent is duly
organized arid 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 ofthe 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 ofthe 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 paTty or by which it iS,bound,
or any law or any rule, regulation, order or decree of any court or governmental agericy 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 ofthe 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 ef\ioin 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 foim presented in Appendix E to the Official Statement; .
(15) . Executed copies of the Continuing Disclosure Agreement, dated as
of November 1, 2005, by and between Castle & Cooke Alberhill Ranch, LLC, a California
limited liability company (the "Developer"), and Union Bank of California, N.A., as
dissemination agent, substantially in the form presented in Appendix E to the Official Statement;
. , .
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(16) A,' certificate or certificates dated the date hereof from the
Developer, together with a' bnng-down certificate dated the Closing Date in substantially the
forms attached hereto as Exhibit E and Exhibit F, respectively; .
(17) Certificate of Status for the Developer from appropriate officials of
the State of California;
(18) A certificate dated the Closing Date, signed by an authorized
principal of Harris Realty Appraisal (the "Appraiser"), in a foim satisfactory to the Underwriter
and its counsel to the effect that (i) the individual signing the certificate is an authorized
representative of the Appraiser, and as such, is familiar with the facts certified and is authorized
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- U
2 (Alberhill Ranch), dated , 2005 (the "Appraisal"), are reasonable; (iii) that the
45660522.1
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ACENDA ITEM NO. :3 l
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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 ofthe
Appraiser and to the best knowledge of the Appraiser the statements concerning the Appraisal
and the value of the property contained under the captions "IMPROVEMENT AREA A _
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;
(19) A copy ofthe Appraisal;
(20) , 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. 2005-2 of the City of
Lake Elsinore (Alberhill Ranch) (Improvement Area A) (the "Special Tax Formula"), after
deducting Administrative, Expenses, will armually 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 Official 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 Special Tax
Apportionment" is correctly presented in all material respects; ,
(21) A certificate 'from Empire Economics, Inc. (the "Market
Consultant") to the following effect (i) 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 with respect to the City of Lake Elsinore Community
Facilities District No 2005-2 (Alberhill Ranch), dated , 2005 (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 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
I
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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 U
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; .
(22) A copy of the Market Absorption Study;
(23) 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 iriformation 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 U
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, oftheir 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
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
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 U
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market price of the Bonds; (e) legislation shall be introduced, by amendment or otherwise, or be
enacted by the HouseofRepresentatives or the Senate of the Congress of the, United States, ora
decision by a court of the United 'States shall be rendered, or a stop order, ruling, regulation or
offi~ial 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 tile
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;'orthe 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 pot 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 ofille 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 ofthe 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) tliefees and expenses ofthe Fiscal Agent and its
counsel shall be payable by the District from the proceeds of the Bonds.
(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. '
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10. Representations, Warranties and Agreements to SurVive Delivery. The'
representations, warranties, indemnities, agreements and other statements of the' District and the U
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: '
i,
To the District:
City of Lake Elsinore Community
Facilities District No. 2005-2'
(Alberhill Ranch)
, 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 Weatherbee
, . I.
12. Parties in Interest. This Purchase Contract is made solely for the benefit ofthe '
District and the Underwriter (including the successors or assigns of the Underwriter) and no
other person shall acquire or have ~y right hereunder or, by virtue hereof All of the District's
representations, warranties and agreements conjained 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 ofthis Purchase Contract.
13. Determination ,of End of the Underwriting Period., For purposes of this
Purchase Contract, the End ofthe 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.
,
14., Effectiveness. This Purchase CO]1trac~ shall become effective upon the <;xecution
of the acceptance by the designee ofthe District and shall be valid and enforceable at the time of
such acceptance.
u
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15. Headings. Theheadings of the sections of this Purchase Contract are inserted for
convenience only and shall not be deemed to be a part hereof.' U
ACENDA ITEM NO. '3' . .
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45660522.1
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16. Governing Law. This Purchase Contract shall be construed in accordance with
the laws ofthe State of California.
17. Counterparts. This Purchase Contract may be executed m 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.
By:
Title
Accepted:
This_th day of
,2005
CITY OF LAKE ELSINORE COMMUNITY
FACILITIES DISTRICT NO. 2005-2
(ALBERHILL RANCH)
By:
City Manager of the City of Lake Elsinore
as the legislative body of the District
45660522.1
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AGENDA ITEM NO. 3 I
PAGE 1<"1 OF ~.~O
Exhibit A
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$
city of Lake Elsinore
Community Facilities District No. 2005-2 (Alberhill Ranch)
Special Tax Bonds (Improvement Area A) 2005 Series A
Maturity Date
(September 1)
Principal
Amount
. Coupon
Yield
Price
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.Exhibit B
Supple~ental opinion of Fulbright &. Jaworski L.L.P.
Addressed to the Underwriter
$
City of Lake Elsinore
Community Facilities District No. 2005-2 (Alberhill Ranch)
. Special Tax Bonds (Improvement Area A) 2005 Series A
,2005
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. 2005-2 (AlberhilI Ranch), 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 (hnprovement
Area A) 2005 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 November
I, 2005 (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 Improvement Area A of
the District, funding a reserve account for the Bonds, funding the cost of capitalized interest
through September I, 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 ofthe 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 ofthis opinion.
45660522.1
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AGENDA ITEM NO. '3 (
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This opinion is limited to matters governed by the laws of the State of California and U
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.
Based upon the foregoing, it is our opinion that:
I. The Fiscal Agent Agreement is exempt from qualification as an indenture
pursuant to the Trust Indenture Act of 1939, as amended.
2.
amended.
The Bonds are exempt from registration pursuant to the Securities Act of 1933, as
3. As of the date of the Official Statement, dated ,2005, 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.
Weare 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 U
reference may be made to it in any list of, the closing documents, pertaining to the delivery of the
Bonds.
Respectfully submitted,
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45660522.1
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Exhibit C
Opinion ofVon Blarcom, Liebold, McClendon & Mann, P.e., Special Counsel to the District
Addressed to the Underwriter
$
. City of Lake Elsinore
Community Facilities District No. 2005-2 (Alberhill Ranch)
Special Tax Bonds (Improvement Area A) 2005 Series A
,2005
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.
2005-2 (Alberhill Ranch) (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:
I. 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 , 2005 (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 ofthe District or the titles
of its officers to their respective offices, (b) in any way question or affect the validity or
45660522.1
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AGENDA ITEM NO. '3 (
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enforceability of the Basic Documents, or (c) find illegal, invalid or unenforceable the Purchase U.
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 perfotniance 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 wOllld 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 ofthis.Jetter. 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 U
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,
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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. 2005-2 (Alberhill Ranch)
Special Tax Bonds (Improvement Area A) 2005 Series A
,2005
City of Lake Elsinore Community
Facilities District No. 2005-2
(Alberhill Ranch)
130 South Main Street
Lake Elsinore, California 92530
Southwest Securities,.Inc.
620 Newport Center Drive, Suite 300
Newport Beach, California 92660
Ladies and Gentlemen:
. .
We have acted as Disclosure Counsel to the City of Lake. Elsinore Community Facilities
District No. 2005-2 (Alberhill Ranch) (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 I,
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 November 1, 2005 (the "Fiscal Agent
Agreement'.'), by and between the District and Union Bank of California, N.^" 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 , 2005 (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 w~ have deemed necessary or
appropriate.
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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 U
any other jurisdiction.
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. U
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,
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AOENDA ITEM NO. 31
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Exhibit E
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Certificate of the Developer
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Reference is made to the City ofLltke Elsinore Community Facilities District No. 2005-2
(Alberhill Ranch) Special Tax Bonds (Improvement Area A) 2005 Series A (the "Bonds'), and
to the Purchase Contract (the "Purchase Contract") by and between the City of Lake Elsinore
Community Facilities District No. 2005-2 (Alberhill Ranch) (the "District") and Southwest
Securities, Inc. (the "Underwriter"), relating to the Bonds. This certificate is delivered pursuant
to Section (7)(e)(I6) of the Purchase Contract. Capitalized terms used herein and not otherwise
defined have the meanings ascribed to them in the Purchase Contract.
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 of Castle & Cooke Alberhill
Rarich, LLC, a California limited liability company (the "Developer"), and the undersigned, on
behalf of the Developer, further certifies as follows: !
I. The Developer is duly organized and validly existing 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 Continuing Disclosure Agreement (the
"Continuing Disclosure Agreement") dated as of November I, 2005 and (ii) to undertake all of
the transactions on its part contemplated by the Continuing Disclosure Agreement and described
in the Preliminary Official Statement.
2. As set forth in the Preliminary Official Statement, the Developer owns property
within Improvement Area A of the District (the "Property"). 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 and the Developer has no interest in
property in the surrounding community which is competing with such 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.
3. The Developer has, or will have prior to Closing, duly authorized the execution
and delivery at Closing of its Continuing Disclosure Agreement, and is duly authorized to
perform the obligations on its part. to .be,performed thereunder. To the Developer's actual
knowledge, it has never failed to comply in all material respects with any previous undertakings
imposed upon it under Rule 15c2-12 of the Securities and Exchange Commission under the
Securities Exchange Act of 1934, to provide disclosure reports or notices of material events
pursuant to such rule. .' .
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. 4. Except as disclosed in the Preliminary Official Statement, to the actual knowledge
of the Developer (for purposes of this Certificate, "actual knowledge of the Developer" shall.
mean the actual knowledge of , [TITLE] of the Developer) after due inquiry,
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the Developer and its Affiliates (as defined in the Continuing Disclosure Agreement) are not in U'
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 proposed Continuing Disclosure
Agreement, or the Developer's ability to pay its special taxes within Improvement Area A of the
District (the "Special Taxes"), and to the actual knowledge of the Developer after due inquiry, 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 Developer after due
inquiry, the execution and delivery at Clo~ing by the Developer of its Continuing Disclosure
Agreemept 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, 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 its proposed Continuing Disclosure Agreement, or its ability to pay its 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 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 U
in any way materially and adversely affect its Continuing Disclosure Agreement, its ability to
develop the Property or its ability to pay its Special Taxes.
6. Except as described in the Preliminary Official Statement, the Developer has no
loans outstanding and unpaid and no lines of credit which are secured by the Property.
7. Except as set forth in the Preliminary Official Statement, no litigation is pending,
against the Developer (with service of process to the Developer having been accomplished) or, to
the actual knowledge of the Developer, pending against any Affiliate of the Developer or
threatened against the Developer or any such Affiliate (a) to restrain or enjoin collection of
Special Taxes, (b) to restrain or enjoin the execution of and performance of the Developer's
obligations under its proposed Continuing Disclosure Agreement, (c) to restrain or enjoin
development of the Property, (d) in any way contesting or affecting the validity of the Special
Taxes, its proposed Continuing Disclosure Agreement or any other document, license, permit or .
approval necessary to the performance on the Developer's part under its proposed Continuing
Disclosure Agreement or (e) which would in any way materially and adversely affect its ability
to develop the Property or to pay its Special Taxes.
8, Except as set forth in'the Preliminary Official Statement, to the actual knowledge
of the Developer after due inquiry, no litigation is pending (with service of process to the
Developer having been accomplished), or, to the actual knowledge of the Developer, threatened
against the Developer or any entity in which it has an ownership interest, involving the
Developer or any entity in which it has an ownership interest, or any of the property or assets
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under the control of the Developer or any entity in which it has an ownership interest, that
involves the possibility of any judgment or uninsured 'liability which may result in any material
adverse change in the assets or funds held by the Developer or any entity in which it has an
ownership interest, that would materially and adversely affect the Developer's ability to develop
the Property or to pay its Special Taxes.
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9. As of the date thereof, except as clarified. below, the Preliminary Official
Statement, solely with respect to information contained therein with respect to the Developer and
its related entities, the proposed development of the Property, property' ownership within
Improvement Area A of the District, the Developer's developJl!.ent plan, the Developer's
financing plan, the Developer~s lenders ,and contractual arrangements, if any, as set forth under .
the caption "IMPROVEMENT AREA A" (excluding the information regarding the Appraisal,
market value ratio and annual special tax ratio ) is true and correct.in all material respects and did
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. The Developer estimates that there' are adequate water
supplies currently available to serve the 509 lots currently being developed in the District.
10. The Developer has full power and.authority to own and develop its Property and
to carry on its business as presently conducted and as described in the Preliminary Official
Statement.
, 11: 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 Ordinancelevying Special Taxes within Improvement Area A of
the District; to invalidate the District or any refunding obligations, or to invalidate the special tax
liens imposed under Section 31155 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 Distnct'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 ariy other agreements between the Developer, the
City arid/or the District. . .
12. Except as disclosed in the Preliminary Official Statement, to the actual knowledge
of the Developer after due inquiry, no other public debt secured by a tax or assessment on the
land in Improvement Area A of the District 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 land within Improvement Area A of the District.
13. Except as described in the Preliminary Official 'Statement, the Developer has not'
assumed any obligations ;under any.judgment, decree, contract or otherwise, that would
materially interfere with the Developer's execution and performance of its obligations under the
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proposed Continuing Disclosure Agreement or which would in any way materially and adversely U
affect its ability to develop the Property or to pay Special Taxes.'
14: To' the actual knowledge of the Developer, the Inland Empire Division of the
Developer has never been delinquent in a material payment of any ad valorem property tax,
special assessment or special taxes on property included within the boundaries of: (i) one of its
residential developments within Riverside County (the "County"), (ii) a community facilities
district within the County, or (iii) an assessment district within the County.
15. The Developer shall comply with the provision of the Mello-Roos Coh1munity'
Facilities Act relating to the Notice of Special Tax in connection with the sale of the Property.
. ,
16. The Developer' is solvent and no proceedings are pending or, to the actual.
knowledge of the Developer after due inquiry, threatened in which the, Developer may be
adjudicated as bankrupt 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'
or be subject to control or supervision ofthe Federal Deposit Insurance Corporation,
17. The Developer has not filed for, nor is the Developer aware of, a reassessment of
the assessed value of the Property,
18. To the actual knowledge of the Developer after due inquiry, there are no claims,
disputes, suits, actions or contingent liabilities (i) of the Developer or (ii) of the Affiliates of the
Developer which may materially or adversely affect the development of the Property.
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19. To the actual knowledge of the Developer after due inquiry, there are no claims, ,
disputes, suits, actions or contingent liabilities among, by and between the Developer or its
financial partners, its Affiliates or its parent entities or subsidiaries of its' parent entities, or .
among, by and between the Developer and any contractors working in the District which may
materially adversely affect the development ofthe Property or the payment ofitsSpecial"Taxes.
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20. 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 carry .
on its business as presently conducted and as described in the}>reliminary Official Statement and
to pay Special Taxes assessed against the Property from time to time owned by the Developer or
owned by its Affiliates and does not anticipate that the District will be required to resort to the .
Reserve Fund 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 contribute additional capital for the payment of'
Special Taxes.
21. All information submitted by, or on behalf of, the Developer to the City, the
District, the Special Tax Consultant or 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 property in Improvement Area A of the' District was, at the time of ' U
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submission and is as of the date of this certificate, to the actual knowledge of the Developer
, , ,'-
after due inquiry, true and correct.
22. 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
Funding, Construction and Acquisition Agreement, dated as of November 1, 2005, as
supplemented, and as described in the 'preliminary Official Statement, and that the costs of
acquisition and construction of such improyements 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.
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23. Solely as to information indicated in Section 9 hereof concerning the Developer,
its Affiliates and development within the District, and subject to the limitations and exclusions.
set forth in Section 9, the Developer agrees to inderimify 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 themeaning of Section 15 ofthe Securities Act of
1933, as amended, or of Section 20 of the Securities Excbange 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
final Official Statement or in any amendment or supplement to such final Official Statement, a
material fact necessary to make the statement therein, in light of the circumstances under which
it was made not misleading. This indenmity provision shall not be construed as a limitation on
any other liability which the Developer may otherwise have to any inderimified party, provided
that in no event shall the Developer be obligated for double indenmification.
24. The Developer agrees to execute its Continuing Disclosure Agreement in the form
attached to the Official Statement, with such additional changes as may be agreed upon by the
Developer.
25. If between the date hereof and the date of the Closing any event relating to or
affecting the Developer or the development shall occur of which the Developer has actual
knowledge which 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 City,
on behalf of 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 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.
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26. . For a period of 90 days after the issuance of the Bonds, if any event relating to or
affecting the Developer or the development shall occur as a result of which it is necessary, in the U
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. .
27. The Developer agrees to deliver a bring-down certificate 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. .
28. On behalf of the Developer, I have reviewed'the content of this Certificate and
have met with counsel to the Developer, for the purpose of discussing the meaning of its
contents.
,2005
DATED:
CASTLE & COOKE ALBERHILL RANCH, LLC,
a California limited liability company
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By:
By:
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Exhibit F
Bring-Down Certificate ofthe Developer
Reference is made to the City of Lake Elsinore Community Facilities District No. 200S-2
(Alberhill Ranch) Special Tax Bonds (Improvement Area A) 200SSeries A (the "Bonds"), to the
Purchase Contract (the "Purchase Contract") by and between the City of Lake Elsinore
Community Facilities District No: 200S-2 (Alberhin- Ranch) (the "District") and Southwest
Securities, Inc. (the "Underwriter"), dated , 200S; relating to the Bonds. 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 , 200S (the "Certificate") delivered by Castle & Cooke Alberhill
Ranch, LLC,. a California limited liability company (the "Developer") is attached hereto as
Exhibit A. . ..
3. No event has occurred since the date of the Preliminary 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.
4. 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
therdmder, and its Continuing Disclosure Agreement constitutes the legal, valid and binding
obligations of the Developer, enforceable against it in accordance with its terms.
DATED:
,200S
. CASTLE &COOKEALBERHILL RANCH, LLC, .
a California limited liability company
By:
By:
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FUNDING, CONSTRUCTION AND
ACQUISITION AGREEMENT
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. THIS FUNDING, CONSTRUCTION AND ACQUISITION AGREEMENT, dated as of
. October 1st, 2005 for identification purposes only, is by and between the City of Lake Elsinore,
California (the "City''), acting on behalf of City of Lake Elsinore Community Facilities District
No. 2005-2 (Alberhill Ranch) (the "District"), and Castle & Cooke Alberhill Ranch, LLC, a
California limited liability company (the "Owner"). '.
RECITALS
WHEREAS,' the. City has undertilken proceedings to fOnll the City of Lake Elsinore
Community Facilities District No. 2005-2 (Alberhill Ranch) (the "District"), designate p'ortions
of the District as separate improvement. areas (each, an "Improvement Area"), authorize the levy
of special taxes within each Improvement Area, and authorize the issuance of Bonds secured by
such speCial taxes levied within each Improvement Area pursuant to The Mello-Roos
Community Facilities Act of 1982 (the "Act") to fund the acquisition and construction of the
Public Facilities and related costs and the payment of Fees. 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, arid
the City and the Owner will benefit from a coordinated plan of financing, design, engineering U
and construction of the Public Facilities and the development of the land within the Improvement .
Areas. .
WHEREAS, the Owner and the City wish to finance the acquisition and construction of
the Public Facilities and the payment therefor by entering into this Agreement for the acquisition
of the Public Facilities and payment for Discrete Components thereof as shown in Exhibit A-I
hereto (as it may be amended and supplemented) with funds in the Acquisition and Construction
Fund.
WHEREAS, the City and the Receiving Agencies 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,
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.
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November 1, 2005
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AGENDA ITEM NO. ~ \
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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, any
other terms, capitalized or not, when used herein shall have the meanings ascribed to them in
the Fiscal Agent Agreement (as hereinafter defined).
"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. ..
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"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, from which'the Purchase Price of the Public Facilities shall be
paid and from which Actual Costs of the Public Facilities may be financed in accordance with
the Construction Election. .
"Act" means The Mello-Roos Community Facilities Act of 1982, being Chapter 2.5 of
Part I of Division 2 of Title 5 (commencing with Section 53311) of the California Government
Code.
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, "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 casts .of any title' insurance required
hereunder); (v) casts .of c.onstructi.on management and supervision equal t.o five percent (5%) .of
the amount set f.orth in (i) ab.ove far a Public Facility or Discrete C.omponent; and (vii) the value .
.of any real pr.operty or interests therein ("Real Estate") that (1) are required for the devel.opment
of any Public Facility such as temporary constructi.on easements, haul roads, etc., and (2) are
required to be c.onveyed with the Public Facility, in an am.ount equal t.o the actual cost of the
November I, 2005
2
ACENDA ITEM NO. ? \
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Real Estate purchased from an independent third party or the value of the Park Site purchased U
from the Owner as determined by an independent third party appraisal conducted by an appraiser .
mutually agreed to by Owner and City or as otherwise agreed to by Owner and City. Actual
Cost shall not include any internal or overhead costs of Owner other than the amount for
construction management and supervision set forth in (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.
"Caltrans" means the State of California Department of Transportation.
, '
"Caltrans Facilities" means one or more of the improvementsdescnbed in'Exhibit A.I
hereto and the Caltrans JCF A, as either may be amended or supplemented, to be owiled, operated
or maintained by the State of California Department of Transportation which are eligible to be
financed out ofthe Acquisition and Construction Fund. . ,
"Caltrans JCF A" means that certain Joint Community Facilities Agreement by and U
among City, State of California Department of Transportation, and Owner dated as of
2005, as it may be amended. '
"City" means the City'ofLake Elsinore, California.
"City Facilities" means one or more of the public facilities or Discrete Components'
thereof described in Exhibit A.I 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.
"Developed 'Property" shall have the meariing ascribed to it III the applicable
Improvement Area Rate and Method.
"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 Agencies have agreed can be separately identified, inspected and completed, and can
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Nov~ber 1, 2005
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AGENDA ITEM NO. ;;, I
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be the subject of a Payment Request hereunder, and (ii) categories of costs relating to each
Public Facility as generally described in Exhibit A-I hereto. .
"District" means City of Lake Elsinore Community Facilities Distnct No. 2005-2
(Alberhill Ranch), a community facilities district organized and existing under the laws of the
State of California.
. '.'District Representative" means the City Manager or his desiinee.
"EVMWD" means Elsinore.v alley Municipal Watei District.
"EVMWD Facilities" means one or more of the water and sewer improvements described
in Exhibit A-I hereto and the EVMWD JCF A, as either may be amended or supplemented, to be
owned, operated or maintained by EVMWD which are eligible to be financed out of the
Acquisition and Construction Fund.
"EVMWD JCFA" means that certain Joint Community Facilities Agreement by and
among City, Elsinore Valley Municipal Water District and Owner dated as of ,2005,
as it may be amended.
"Fees" means development impact fees, environmental mitigation fees or other capital
improvement fees .or charges imposed or collected by the City or EVMWD as defined in the
EVMWD JCF A.
(\ "Fiscal Agent" means the fiscal agent identified in a 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 an Acquisition and Construction Fund, as it may be amended or supplemented
from time to time. .
"Improvement Area" shall mean an.improvement area ofthe District.
"Improve~ent Area Rate and Method" means the rate and method of apportionment of
special taxes approved for an Improvement Area.
"Improvement Agreement" shall have the meaning set forth in Section 2.3 below.
"Owner" means Castle & Cooke Alberhill Ranch, LLC, a California limited liability
company, and their successors and assigns.
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"Park Site" means that certain property within the City, consisting of approximately 22.5
gross acres, located at the southeast intersection of Lake Street and Nichols Road and anticipated
to be developed as a community park,
"Party" means either the City or the Owner; "Parties" mean the Owner :md the City.
November I, 2005
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ACENDA ITEM NO.~
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"Paymimt Request" means a document, substantially in the form of Exhibit B-1 hereto, to U
be used in requesting a payment of a Purchase Price, and a document, substantially in the form of .
ExhibitB-2 hereto, to be used in requesting payment of Fees.
"Plans" means the plans, specifications, scnediIles 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, CAL TRANS 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 "Alberhill
Ranch. "
"Public Facility" or "Public Facilities" means one or more of the public facilities'
described in Exhibit A-I hereto, as it may be amended or supplemented, which are tobe owned,
operated, and maintained by either the City, EVMWD, or Caltrans and are eligible to be financed
out of the Acquisition and Construction Fund.
"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 U
such Public Facility or Discrete Component, as determined in Section 4.4.
"Receiving Agency" means the City, EVMWD, Caltrans, or other governmental entity
that will own, operate and maintain a Public Facility 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-I, and/or the addition to Exhibit A-I 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. Bonds of an Improvement Area
may not be issued unless and until the City receives an executed notice from Owner requesting
such issuance. Upon City's receipt of such issuance notice, the Owner and the City staff will
meet regarding the amount, tirning and other material aspects of each series of the Bonds, but the
legal proceedings and the series, principal amounts, rates, terms and conditions and timing of the
sale of the Bonds shall in all respects be solely determined by the City Council of the City, acting
as the governing body of the District. Subject to the foregoing discretion of the governing body U
of the District, the District may issue one or more series of Bonds for each Improvement Area
November 1, 2005
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with a term .of not less than 30 years in coordination with Owner's timing of development within
each Improvement Area and subject to sound municipal finance practices and then current
industry standards. The District agrees that each series of Bonds shall be sized, to the extent
reasonably allowable based. on debt service coverage of not more than 110% (based upon the
aggregate assigned special taxes authorized to be levied. upon buildout of the applicable
Improvement Area in accordance with the Improvement Area Rate and Method) and a "value-to-
lien" ratio of 3:1. For purposes of determining the value-to-lien ratio, the value of the
Improvement Area for which Bonds are ,being issued shall include the value of the Public
Facilities and Fees to be financed with the proceeds of the Bonds and not included in an escrow
fund or account and the lien shall not include the portion of the Bonds included in an escrow
fund or account established in connection with the issuance of the Bonds. The District agrees
that an escrow structure may be used at the Owner's request in order to' comply with the 3:1
value-to-lien ratio requirement. Upon the City Manager's request, Owner shall deposit funds
with the City to pay for reasonable costs to be incurred by the City related to the issuance of such
Bonds including, without limitation, appraisal, market absorption study, special tax consultant,
bond and issuer's counsel, and City attorney and staff costs. Any funds deposited by Owner and
expended by City shall be subject to reimbursement solely out of the proceeds of the applicable
Bonds. Any unexpended funds deposited by Owner with the City pursuant to this Section 2.1
and remaining on deposit with the City following the issuance of the applicable series of Bonds
or the abandonment of efforts to issue such Bonds shall be returned to Owner.
. Section 2.2 Bond Proceeds and Special Tax.es. 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(s). The City makes
no warranty, express or implied, that the proceeds of the Bonds deposited and held in the.
Acquisition and Construction Fund(s),and any investment earnings thereon, will be sufficient to
pay the Purchase Price of all of the Public Facilities and Fees. To the extent allowed under the
Improvement Area Rate and Method, the City agrees that special taxes shall be levied on
property in each Improvement Area to pay directly for Public Facilities, or any Discrete
Components thereof, and Fees if Bonds have not previously been issued secured by such special
taxes. Such special taxes levied and collected by the City and any prepayment of special taxes
collected prior to the issuance of Bonds of an Improvement Area shall be held by the .City and
disbursed to pay the Purchase Price of Public Facilities, or any Discrete Component thereof, and
Fees and, upon the issuance of Bonds, such special taxes still held by the City shall be deposited
in the Acquisition and Construction Fund. .
Section 2.3 Proceeds. The proceeds of each series of 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; reinv(:sted 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
and Fees (including payment of the Purchase Price of Discrete Components thereof), all as
herein provided. The Acquisition and Construction Fund may include two accounts - a "City
Facilities Account" and a "Non-City Facilities Account." 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
November 1. 2005
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written request from Owner. Unless otheIWise requested in writing by Owner prior to issuance U..
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 Account 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 transferred to pay debt service on the. Bonds. Earnings on amounts in the
reserve fund(s) shall be deposi~ed in the following order of priority:
I.) The Reserve Fund, iffund is below the reserve requirement;.
2.) Any other fund, excluding the Acquisition and Construction Fund, required by the
Fiscal Agent Agreement that is below a required minimum, as determined by the
Fiscal Agent;
3.) The Acquisition and Construction Fund.
. For Bonds issued on or prior to May 30, the District agrees to inchide capitalized inte~est
to cover debt service due in September of the same year. For Bonds issued after May 30, the
District agrees to include capitalized interest to cover debt service for all payments due up to and
including September ofthe following year.
Owner may provide a written notice to District indicating that it shall not request the. U
issuance of Bonds for a particular Improvement Area. Upon receipt of such notice and Owner's
advance of the City's costs of preparing and recording a notice of cancellation of special taxes
and extinguishment of lien ("Notice of Cancellation") with respect to. all property within the
Improvement Area, District shall record the Notice of Cancellation terminating the authority to ,
levy special tax~s in the Improvement Area pursuant to the applicable Improvement Area Rate
and Method.
The Owner acknowledges that any lack of availability of amounts in the Acquisition and
Construction Fund to pay the Purchase Price 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 Agr.eements"). ,
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 each Improvement Area, including the financing plan for such
development, which is necessary to ensure that the City complies with its contiiming disclosure
obligations under the Fiscal Agent Agreement and all other applicable federal and state securities
laws.
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November I, 2005
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ARTICLE III
, ,
, CONSTRUCTION OF PUBLIC FACILITIES,
Section 3.1 Plans. To the extent and at the tinie 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 accordimce 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'IniprovementAgteements. All Public Facilities shall be
constructed in accordance with the rlnprovement Agreements and the approved Plans.
, The terms and conditions related to acquisition or construction of the EVMWD Facilities
j and Caltrans Facilities, including but not limited to, the design, bidding, contraCt award,
construction, inspection, acceptance, warranty, indemnification, insurance and payment, shall be
governed by the EVMWD JCF A arid Caltrans JCF A, respectively.
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Section 3.3 Relationship to Public Works. This Agreement is for the acquisition of
and payment for the Public Facilities and Discrete Components thereof by ihe Receiving Agency
from moneys in the Acquisition and 'Construction Fund and is not intended to be a pubiicworks
contract. The City and' the Owner aiP-ee 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. '
From time to time atthe 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.
o
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 any Discrete Components
thereof, 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 City Facility
for which the Owner submits' a Payment Request and that the contract for the construction of
each such City Facility was awarded to the lowest responsible bidder for such City Facility.
Bidding, contracts and change orders shall comply with the requirements set forth inExhibit "D"
of the Agreement. '
November 1. 2005
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ACENDA ITEM NO. 3 ( Q
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Section 3.6 Construction Election. The Owner and City, or the Owner and a U
Receiving Agency, may mutually elect (the "Construction Election") to cause any or all of the
applicable 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,)ncluding 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 AcceptableTitle to the land or right-of-ways then o~ed by the' Owner on and over such
real property on which the Public Facility, or Discrete Component thereof, is to be constructed.
Upon completion of a City Facility or Discrete Component thereof for which a
Construction Election has been made, payment shall be made pursuant to Article IV below forthe
Purchase Price thereof incurred by the Owner prior to the Construction Election.
Upon completion of one or more EVMWD Facilities or Caltrans Facilities for which a
Construction Election has been made, payment shall be made pursuant to Article IV below and
the EVMWD JCFA or Caltrans JCFA as applicable, for any costs thereof incurred by the Owner,
prior to the Construction Election, which are authorized to be paid with Bond proceeds. '
. 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 stich 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
uriconditionallien releases for such Public Facility or all Discrete'Components in accordance'
with Section 3262 of the Civil Code. "
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.1
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. ' 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 to, be acquired by other public
entities or utilities; 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
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Nov~ber I, 2005
9
'31
AGENDA \1EM NO. - .JJ, n-:'
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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 capital facilities, as generally described in
Exhibit A-2 attached hereto, may have been completed prior to the formation ofthe District. The
Parties agree that said capital facilities shall, upon the concurrence of the Director that said
capital facilities (or identifiable components thereof) were completed prior to the formation' of
the District, be eligible to be acquired with funds available in the Acquisition and Constructioii '
Fund, pursuant to the provisions of this agreement excepting there from those provisions relating
to public bidding, competitive bidding, and payment of prevailingw~ges.
Section 4.3 Reqnests. In order to receive the Purchase 'Price, 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 Be I 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 applicable), and (c) an assigrunent 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 conducta'review in order to confirm that such
November 1,2005
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AGENDA ITEM NO. -
PAGEJl3-0F ri.<.a..
request is complete, that such Discrete Component or Public Facility identified therein was U
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 Receiving Agency that
such applicable 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 Paynlent 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 Actual Cost of any
Public, Facility or Discrete Component covered by the Payment Request, the Director shall
approve for payment an amount equal to the Purchase Price thereof the Director determines is U'
appropriate (which shall not be less th,an the amounts of contracts and change orders previously
approved by the Director) and shall deliver notice of disapproval ofthe 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
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 or the applicable, Receiving Agency in connection with the Improvement
Agreements or has provided bonds protecting the Receiving Agency 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 U
materials provided in connection with such Public Facilities have not been submitted to the
November 1, 2005
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ACENDA ITEM NO. -
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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 substaptially 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 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.
. . .
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 nor 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 receiptof the approved Payment Request, cause the same
to be paid, to the extent of funds then on deposit in the Acquisition and Construction Fund
however, the Purchase Price for any Public Facility shall not be paid earlier than thirty-five (35)
days after the recording of a Notice of Completion for such Public Facility. 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.
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 seryices 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 restricti~ms shall apply to any payments made to. the Owner under
Section 4.5 hereof: .
A. Amounts of Pavrnents. Payments for each Discrete Component or Pubiic.
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 PUrchase Price of a Discrete Component
November 1. 2005
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AGENDA ITEM NO. 3 IS:
PAGE 1/5 OFa 0
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 U
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. FreQuencv. 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.
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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 which are then estimated to be due and
payable by Owner or its successors and 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
Owner or its successors and assigns equal to the amount of the moneys disbursed pursuant to the
Payment Request. In the event 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 deposit with the City the amount
due in immediately available funds (a "Deposit") and such Deposit shall be reimbursed to 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 addition, in the event that the amount in the City
Facilities Account is insufficient to pay the total amount of Fees requested in a Payment Request,
Owner or its successors and assigns shall make a Deposit equal to the amount due and such
Deposit shall be reimbursed to Owner when funds subsequently deposited in the City Facilities U
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Account are disbursed to the Cityin an equal amount for the payment of such Fees. In the. event
Bonds are not iss\led 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 finan~ing programs. Owner shall be entitled to full credit
against all applicable Fe.es imposed or collected by the City based upon 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.
EVMWD Charges and Advances (as defined in the EVMWD JCFA) rnay be financed
with the disbursement of funds from the applicable account of the Acquisition and Construction
Fund upon City's receipt of a Payment Request inthe form attached hereto. as ExhibitB-2.
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 thereofby 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, the
"Director shafl 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.
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
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such Public Facility or a Discrete Component thereof, the Owner shall be responsible for U"
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 conveyor cause to be conveyed
Acceptable Titie 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 U
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 transfe,r 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 Agreeme~ts. "
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
arising out of the performance of any work related to the Public Facilities. Such insurance shall
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.
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. 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 Tegarding 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. Castle & Cooke Alberhill Ranch is a California limited
liability company, is in compliance with the laws of the State of California, and has the limited
liability company power and authority to own its property and assets and to carry on its business
as now being conducted and as now contemplated.
B. Authoritv. TiJ.e Owner has the pow~r and authority to enter into. this
Agreement, and has taken all action necessary to cause thIS Agreement to be executed and
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 b.e
obtained. The Owner further agrees that the Public Facilities constructed by the Owner iJ.ave'
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 h()ld 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
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.
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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, U
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,
cOlrunences '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.
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Section 8.3 Acceptance of Service of Process. In the event that any legal action is
commenced by Owner against City, service of process on City shall be made by personal service
upoh the City Clerk or ih such other manner as may be provided by law. In the event that any
legal action is commenced by City against Owner, service of process on 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, therlghts and remedies of the Parties are cilmulative;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
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 U
interpretation and enforcement of this Agreement.
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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 ha~e 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
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 rec~ived 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, 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 second
day following its deposit with the overnight carrier. Notices shall be sent as follows:
Ifto City:
City of Lake Elsinore
Attn: City Manager.
130 S. Main Street
Lake Elsinore, CA 92530
FAX No. (909) 674-2392
With copies to:
November 1, 2005
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Van Blarcom, Leibold, McClendon & Mann, P.C.
Attn: Barbara Zeid Leibold, City Attorney
23422 Mill Creek Drive, Suite 105
Laguna Hills, CA 92653
FAXNo. (949) 457-6305
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If to Owner:
Castle & Cooke Alberhill Ranch, LLC
Attn: MJ. "Tom" Tomlinson
17600 Collier Avenue, Suite Cl20
Lake Elsinore, CA 92530
FAX No. (951) 245-7801
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 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 tIie Owner. The Owner and
Assignee shall provide to City such reasonable proof as it 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 U
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 Owner shall be . released with respect to such
obligations. In addition, Owner may assign to an Assignee, without the City's consent or the
Assignee'sexecution of an assignment and assumption agreement, the rights and obligations
under this Agreement relating to the funding of Fees, provided Owner gives City written notice
ofthe 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 City and Owner. It is hereby acknowledged by
Owner that the relationship between City and Owner is not that of a partnership or joint venture
and that City and 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, City shall
have no rights, powers, duties or obligations with respect to the development, operation,
maintenance or management of the Project. Owner agrees to indemnify, hold harmless and
defend City from any claim made against City arising from a claimed relationship of partnership
or joint venture between City and Owner with respect to the development, operation,
maintenance or management of the property within the District.
Section 9.6 No Third Party Rights. The Parties intend that no rights or remedies be
granted to any third party as a beneficiary of this Agreement or of any covenant, duty, obligation
or undertaking established herein.
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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 .df 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, Urider Improvement Agreements, other
agreements, use regulations or subdivision requirements' relating' to the' development of the
property within the District. This Agreement shall not confer any additional rights, or waive any
rights given, b~ either party hereto unde~ '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, mas~uline, 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 limitatipn." This Agreement shall be interpreted as th!,ugh prepared jointly by
both Parti.es. .
. Se~tion9.11 No Waiver. A waiver by either P~y ofa breach of any of the covenants,
conditions or agreements under this Agreement to be performed by the other Party shall not be
c6nstrued as a waiver of any succeeding breach of the ,same or other covenants, agreements,
restrictions or conditions of this Agreement. '.. .'
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Section 9.12 . Modifications. Any alteration, change or modification of or to this
Agreement, in order to become effective, shall bemade in Writing and in each instance signed on
behalf of each Party.. . .
Section9.13 Severability.' If any term, proVISIon, condition of 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, shaU not be affected, and shall be villid and enforceable to the '
fuUest 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
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: they have carefully read this Agreement, and in signing this Agreement, they do so
November I. 2005
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with full knowledge of any right which they may have; they have received independent legal
advice from their respective legal counsel as to the matter set forth in this Agreement, or have U
knowingly chosen not to consult legal counsel as to the matters set forth in this Agreement; and,
they have freely, signed this Agreelllent 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 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 City shalf 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 City shall be personally liable to Owner, or any successor in interest, in the event
of any Default or breach by City or for any amount which may become due to Owner or its'
successors, or on any obligatIons under the terms of this Agreement. Owner hereby waives and
releases any claim it may have against the members, officials or employees of City with respect
to any Default or breach by City or for any ampunt which may become due to Owner, or it's
successors, or on any obligations under the terms of this Agreement. ' '
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Section 9.19 Notice of Special Tax. 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 iots 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 Community Facilities 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 applicabl,e, before the potential purchaser becomes contractually
committed to purchase the lot or the lessee ,enters into the lease of the lot so tliat 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. "
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AGENDA ITEM NO. '3 (
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IN WITNESS WHEREOF, the Parties have executed this Agreement as of the
respective dates set forth below.
Dated:
,2005
ATTEST:
FREDERICK RAY, CITY CLERK
By:
pty Clerk
APPROVED AS TO FORM:
(\ . V AN BLARCOM, LEIBOLD,
McCLENDON & MANN, P.C.
City Attorney
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By:
Barbara Leibold
Dated:
,2005
"CITY"
CITY OF LAKE ELSINORE, a municipal
, corporation
By:
Mayor
~'OWNER"
CASTLE & COOKE ALBERHILL .
RANCH, LLC, a California limited
liability company
By:
Merlin Jackson Tomlinson'
Vice President- Land Development
By:
Ken R. Benson
Vice President - General Manager
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EXlllBIT A-I (I)
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ELIGIBLE PUBLIC FACILITIES LIST
EVMWD FACILITIES
SEGMENT ONE - 1601 TANK, BOOSTER STATION, AND PIPELINE FACILITIES- $ 6,097,601
TRACT NO. 28214-2->4 .
Engineering design, plan check, inspection, permitting, survey, soils testing, construction
management, grading, access road improvements, walls and fencing, paving, landscaping,
site utilities, erosion control, 3.0 MG 1601 reservoir facility (2 tanks at 1.5 MG each) and
appurtenances in Tract No. 28214-2, Lot 105; 1601 booster station huilding, pumps,
controls, and appurtenances with a connection to 1434 Zone supply facility located in
Tract No. 28214-4, Lot 2; and 12" and 16'.' pipelines located in streets and easements
,
within Tract Nos. 28214-2, -3 and -4. .
SEGMENT TWO - 1801 TANK, BOOSTER STATION, AND PIPELINE FACILITIES $ 4,526,197
- TRACT NO. 28214-2 and-6
Engineering design, plan check, inspection, permitting, suryey, soils testing, construction
management, grading, access road improvements, walls and fencing, paving, landscaping,
site utilities, erosion control, 1.25 MG 1801 reservoir facility (2 tanks at 0.625 MG each)
and appurtenances in Tract No. 28214-6, Lot 87; 1801 booster station building, pumps,
controls and appurtenances with a connection to 1601 Zone tank located in Tract No.
28214-2, Lot 105; and 12" pipelines located in Alberhill Ranch Road and streets within
Tract No. 28214-6.
SEGMENT THREE - NICHOLS ROAD - SEWER LIFT STATION - $ 3,618,698
TRACT NO. 28214-5
Engineering design, plan check, inspection, permitting, survey, soils testing, construction
management, for the installation of Master Planned Nichols Road sewer lift station
facility located at the southeast comer ofVTM 30836, including lift station building,
pumps, controls, site paving, fencing, site utilities, erosion control; fairshare cost of
Collier Avenue sewer improvement to EVMWD Regional Wastewater facility; traffic
control and pavement restoration; and temporary 8" force main and permanent 8" force
main system to join sewer system in Collier A venue.
SUBTOTAL EVMWD FACILITIES'- $ 14,242,496
Estimated Cost
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* Certain EVMWD Facilities not listed above are included in the descriptian of City Facilities be/ow.
EVMWD FEES
EVMWD Water Impact Fees $ 8,523,530
EVMWD Sewer Impact Fees . $ 7,465,350
SUBTOTAL EVMWD FEES = $ 15,988,880
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CITY OF LAKE ELSINORE FACILITIES (includes EVMWD sewer aud water facilities and Caltrans
facilities associated with public street improvements)
Estimated Cost
SEGMENT Fo.UR - Mo.UNTAIN AVENUE IMPRo.VEMENTS- , . ,$ 368,287
TRACT NO., 28214-1
Engineering design, plan, check, inspection, permitting, survey, soils testing, construction'
management, for the demolition and grading in preparation of the various street, traffic
signals, water, sewer, drainage, dry utilities, erosion control, landscaping, walls and
fencing improvements and related construction work in Mountain A venue from Lake
Street easterly 00400 LF to its easterly tenninus, .
SEGMENT FIVE - ALBERHLL RANCH Ro.AD - LAKE STREET TO. 1601 TANK- $ 3,487,728
TRACT NO., 28214-2
Engineering design, plan check, inspection, pennitting, survey, soils testing, construction
management, for the demolition and grading in preparation of the various street, traffic
signals, median, water, sewer, drainage, dry utilities, erosion control, landscaping, walls,
fencing improvements and related construction work in Alberhill Ranch Road from Lake
Street easterly 001,400 LF to the entrance of the EVM\VD 1601 tank reservoir facility at
the easterly boundary line of Tract No, 28214-2, . .
SEGMENT SIX - ALBERHILL RANCH Ro.AD - NICHo.LS Ro.AD TO. 1601 TANK- $ 6,723,245
TRACT NO., 28214-5
Engineering design, plan check, inspection, permitting, survey, soils testing, construction
management, for the demolition and grading in preparation of the various street, median,
water, sewer, drainage, dry utilities, erosion control, landscaping, walls and fencing
improvements and related construction work in Alberhill Ranch Road from Nichols Road
southerly 004,100 LF to the 1601 tank site entrance at the westerly.tenninus of Tract No,
28214-5.
SEGMENT SEVEN - NICHo.LS Ro.AD - LAKE STREET TO. ALBERHILL RANCH $ 3,511,374
Ro.AD
Engineering design, plan check, inspection, permitting, survey, soils testing, construction
management, for the demolition and grading in preparation of the various street, water,
sewer, drainage, dry utilities, erosion control, right-of-way acquisiti.on,' environmental
mitigation, median fees, power pole relocations, landscaping, walls and fencing
improvements and related construction work in Nichols Road from Lake Street easterly ,
001,700 LF to the easterly tenninus of Tract No, 28214-4 inunediately east of Alber hill
Ranch Road, ' .
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SEGMENT EIGHT - NICHo.LS Ro.AD - ALBERHILL RANCH Ro.AD TO. EAST $ 9,027,412
SIDE o.F VTM 30836
Engineering design, plan check, inspection, - permitting, survey, soils. testing, construction
management, for the demolition and grading in preparation of the various street, median,
water, sewer, drainage, dry utilities, erosion control, right-of-way acquisition,
environmental mitigation, median fees, landscaping, walls ;md fencing improvements and
related construction work in Nichols Road from Alberhill Ranch Road easterly 005,500 LF
to the east side ofVTM 30836 approximately 5,300 LF.
SEGMENT NINE - LAKE STREET - 1,750' CURVE No.RTH o.F NICHo.LS Ro.AD . $ 1,752,968
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ACENDA ITEM NO. "3 I
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Engineering design, plan check, inspection, permitting, survey, soils testing, construction
management, for the demolition and grading in preparation of the' various street, water,
sewer, drainage, dry utilities, erosion control, right-of-way acquisition, environmental
mitigation, landscaping, walls and fencing improvements and related construction work
in Lake Street from Nichols Road northerly ,,1,750 LF to temporarily join existing Lake
Street. ,
SEGMENT TEN - LAKE STREET TRAFFIC SIGNALS AT 1-15 FWY $ 1,256,316
NORTHBOUND AND SOUTHBOUNDON-RAMP/OFF-RAMPS AND AT
TEMESCAL CANYON ROAD
Engineering design, plan check, inspection, permitting, survey, soils testing, constructi<?n
management, for the installation of three (3) traffic signals on Lake Street at the 1-15 Fwy
on-ramp and off-ramp and at T emescal Canyon Road, including traffic signal facilities
and controllers; demolition and grading; power, pavement restoration, striping, lane
widening, and traffic contr\,l.
SEGMENT ELEVEN - LAKE STREET - MOUNTAIN A VENUE TO NICHOLS $ 8,408,993
ROAD
,
Engineering design, plan check, 'inspection, permitting, survey, soils testirig~ construction ,
management, for the demolition and grading in preparation of the various street, water, .
sewer, drainage, dry utilities, erosion control, traffic control, right-of-way acquisition,
environmental mitigation, median fees, power pole relocations, landscaping, walls' and'
fencing improvements and related construction work in Nichols Road from Mountain
A venue northerly "5,300 LF to Nichols Road,
SEGMENT TWELVE - LAKE STREET - "1,500 LF NORTH OF 1,750' RADIUS $ 1,623,206
CURVE
Engineering design, plan check, inspection, permitting, survey, soils testing, construction
management, 'for the demolition and grading in preparation of the various street, water,
sewer, drainage, dry utilities, erosion control, traffic, control, right-of-way acquisition,
environmental mitigation, landscaping, walls and fencing improvements and related
construction work in Lake Street from a point 1,500 LF north of Nichols Road, northerly,
approximately 1,850 LF to join existing Lake Street.
SEGMENT THIRTEEN - NICHOLS ROAD - EAST SIDE OF TRACT NO. 30836 TO $ 4,661,486
THE 1-15 FWY
Engineering design, plan check, inspection, permitting, surVey, soils' testing, construction
management, for the demolition arid grading in preparation of the various street, water,
sewer, drainage, dry utilities, erosion control, right-of-way acquisition, enviromnental
mitigation, landscaping, walls and fencing improvements, Temescal Creek.bridge
construction in Nichols Road from the easterly terminus of Tract No. 30836 easterly
"I, I 00 LF to Collier A venue; roadway reconstruction of ,,400 LF of Collier A venue; and
roadway reconstruction of ,,350 LF of a portion of Nichols Road from Collier A venue to
the 1-15 Fwy.
SEGMENT FOURTEEN - NICHOLS ROAD TRAFFIC SIGNALS AT 1-15 FWY - $ 727,705
NORTHBOUND AND SOUTHBOUND ON-RAMP/OFF-RAMPS AND AT COLLIER
AVENUE
Engineering design, plan check, inspection, permitting, survey, soils testing, construction
management, for the installation of three (3) traffic signals on Nichols Road at the 1-15
Fwv on-raom and off-ramns and at Collier Avenue, includine traffic sienal facilities and
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ACENDA ITEM NO. :31
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controllers; demolition and grading; power, pavement restoration, striping, lane widening,
and traffic control.
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SEGMENT FIFTEEN - LAKE STREET - 1-15 FWY SOUTH M,OOO LF $ 5,264,031
Engineering design, plan check, inspection, permitting, survey, soils testing, construction
management, for the demolition and grading in preparation of the various street, water,
sewer, drainage, dry utilities, erosion control, traffic control, right-of-way acquisition,
environmental mitigation, landscaping, walls and fencing improvements and related
construction work on Lake Street from the 1-15 Fwy south 0104,000 LF including bridge
widening of existing bridge at Lake Street between the T emescal Canyon Road and the 1-
15 Fwy southbound on-ramp/off-ramp.
SEGMENT SIXTEEN - NICHOLS ROAD - TRAFFIC SIGNALS $ 653,070
Engineering design, plan check, inspection, permitting, survey, soils testing, construction
manag~ment, for the installation of three (3) traffic signals on Nichols Road at Alberhill
Ranch Road, Terra Cotta A venue and Collector "A" into Tract No. 30836 including
traffic signal facilities and controllers; demolition and grading; power, pavement
restoration, striping, lane widening, and traffic control.
SEGMENT SEVENTEEN - TERRA COTTA AVE - NICHOLS ROAD TO SOUTH $ 795,755
BOUNDARY TRACT NO. 28214-9
Engineering design, plan check, inspection, permitting, survey, soils testing, construction
management, for the demolition and grading in preparation of the various street, median,
water, sewer, drainage, dry utilities, erosion control, landscaping, walls and fencing
improvements and related construction work in Terra Cotta Avenue from NicholiRoad
southerly 010 I ,000 LF to the south boundary of Tract No. 28214-9.
PARK SITE ACQUISITION" $ 10,000,000
PUBLIC P ARKIRECREA TIONAL IMPROVEMENTS $ 1,900,000
.
SUBTOTAL CITY OF LAKE ELSINORE FACILITIES'" - $ 60,161,576
* * Preliminary estimate, actual value to be determined.
... Certain EVMWD Facilities and Ca/trans Facilities areinc/uded in the description of City Facilities above.
CITY OF LAKE ELSINORE FEES (')
Estimated Cost
Library Capital Improvement Plan Fee . $ 235,500
Traffic InnpactFee . $ 1,872,006
Fire Mitigation Fee $ 235,500
Development Agreement Fee (DAG Fee) (for capital facilities) $ 1,570,000
Drainage Fee $ 2,451,297
, SUBTOTAL FEES ~ $ 6,364,303
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ACENDA ITEM NO. '3 (
PA<iE~OF do. '10
The following cost categories are eligible for reimbursement/acquisition as Discrete Components of a
Public Facility.
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2.
I. Real Estate Acquisition or Dedication inCluding, without limitation:
Professional Fees
Survey Plats
Easement Acquisition Costs
Escrow Fees
Condemnation Expenses including Severance Damages
Title and Recording Fees
Appraisals/Legal Fees
Street Surface Improvements. This cost category item includes, without limitation:
Power Pole Relocations
Street Improvement Plans or other required plans or stodies
Survey & Staking
Fine Grade & Base
Paving
Curb/Gutter
Sidewalk
Median Landscaping
Aqueduct Crossing Structures
Monumentation in compliance with Section 8771 & 8772 of the California
Business & Professions Code
Pavement Marking/Striping
Aqueduct Pipe Reinforcement
Loop Detectors & Conduits
Culverts & Bridges
Medians/K-Railing
Sound Attenuation Walls
Header Board
Fencing & Gates
Guardrailing
Street Lights
Street Signage & Striping
Traffic Signals. This cost category item includes, without limitation:
Traffic Signal Plans or other required plans or stodies
Traffic Signal Interconnection
'Traffic Signal Controllers
Traffic Signal Removal/Replacement
Traffic Detours, Barriers & Tmffic Control
Sewer & Reclaimed and Potable Water Improvements. This cost category item includes, without
limitation:
Sewer or Water Improvement Plans or other required plans or stodies
Trenching
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3.
4.
5.
6.
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ACENDA ITEM NO. :3 I
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Pipelines & Mains
. Manholes/Cleanouts
Valves & Blow-offs
Hot Taps
MetersILaterals
Backflow Preventer
Demo & Disposal
Vacuum Assembly
Inspection Vault
Concrete Encasement
Fire Hydrants
Force Mains
Thrust Blocks
Laterals
Pressure Testing & Sterilization
Construction Water
Special Structures
Cathodic Protection
Pressure Reduction Stations
Pump stations including pumps/buildingsielectrical
Trench Backfill
Remove & Relocate Water Main
Storm Drain Improvements. This cost category item includes, without limitation:
Storm Drain Improvement Plans or other required plans or studies
Trenching
Storm Drain Pipes
Manholes & Inlet Structures
Outlets & Energy Dissipaters
Box Culverts
Rip Rap
Special Structures
Headwalls
C.M.P. Arches
Trench Backfill
Publicly-Owned Dry Utility Improvements. This cost category item includes, without limitation::
Non-Refundable Deposits
Trenching
Conduit
Transformers
Underground Vaults & Manholes
Special Structures
Piping, Gas Distribution, Valves
Cathodic Protection
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ACENDA ITEM NO. 3 { .
PACE-13.LOF ~'1o
Stationing
Pull Boxes
Trench Backfill
Retaining Walls/Structures
Polerrower Relocation
Meters & Laterals
Conversion to Underground
Engineering & Fees
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ROUGH GRADING: Rough grading shall only be reimbursed at the time the Public Facility or Discrete
Component for whicb the rough grading pertains to has been accepted by the Receiving Agency and a payment
request for such Public Facility or Discrete Component has been made by the Owner.
A. Rough Grading (For rough .grading encompassing both private tract areas and public
street improvements, the reimbursable portion for the public street improvements
will be calculated using a I: I slope prism from the edge of the public Right-of-
. Way.) This cost category item includes, without limitation:
Grading Plans or other required plans or studies
Wet and Dry Utility Trenching
Street Undercut
Earthwork ImportJExport
Clear and Grub
Move on/Move off
Rip Rap & Rock Slope Protection
Utility Relocation/Conversion
Brow Ditch
Terrace Drain
Alluvium Removal/Recompaction
Buttress & Stabilization
Drill & Shoot
Blasting Insurance
Wall & Trench Backfill
Rock Crushing/Removal
, Remedial Grading
Rock Facing Treatment
Construction Water
Over-excavation
Concrete Cutting
Pavement Demo and Disposal
Special HandlingIRock Crushing
Retaining Walls and Crib Walls
Canyon Sub-Drains/De-watering
Hydroseeding/Irrigation
Bid Package Preparation/Advertisement
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AGENDA ITEM NO. ~ 0
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Erosion Control Measures
(I) This description of the eligible Public Facilities is preliminary, general and subject to change. The
actual Public Facilities eligible to be fInanced through the District shall be based upon the fmal approved Plans and
shall include the Public Facilities required by the City, California Department of Transportation (Caltrans), and
EVMWD to be constructed in connection" with development of the land within the District. Estimated costs are
subject to change.
(2) Tbe description of the City of Lake Elsinore Fees is subject to change. Tbe actual City of Lake
Elsinore Fees to be fmanced through the District may include additional Fees not listed in the above description
provided such Fees are for the construction and/or acquisition of public infrastructure and/or other goverurnental
facilities with an estimated useful life of fIve years or longer. Estimated costs are subject to ~hange.
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ACENDA ITEM NO. "3 l
" PAGE_l3"2, OF d..\ 0
EXHIBIT A-2 (I)
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ELIGIBLE PRE-CFD FORMATION CAPITAL FACILITIES
Estimated Cost
SEGMENT FOUR - MOUNTAIN A VENUE IMPROVEMENTS-
TRACT NO. 28214-1
$
368,287
Engineering design, plan check, inspection, pennitting, survey, soils testing, construction
management, for the demolition and grading associated with and including varions street,
traffic signals. water, sewer, drainage, dry utilities, erosion control, landscaping, walls
and fencing improvements and related construction work in Mountain A venue from Lake
Street easterly MOO LF to its easterly tenninus.
SEGMENT FIVE - ALBERHLL RANCH ROAD - LAKE STREET TO 1601 TANK-
TRACT NO. 28214-2
$ 3,487,728
Engineering design, plan check, inspection, pennitting, survey, soils testing, construction
management, for the demolition and grading associated with and including various street,
traffic signals, median, water, sewer, drainage, dry utilities, erosion control, landscaping,
walls, fencing improvements and related construction work in AlberhiIl Ranch Road from
Lake Street easterly 0101,400 LF to the entrance of the EVMWD 1601 tank reservoir
facility at the easterly boundary line of Tract No. 28214-2.
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(I) The eligible cost of the aforementioned facilities shall include rough grading for the public street
improvements calculated using a 1:1 slope prism from the edge of the public Right-of-Way.
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EXHIBIT B-1
PAYMENT REQUEST NO.
The undersigned (the. "Owner") hereby requests payment in the total
amount of $ for the Public Facilities (as defined in the Funding, Construction and
Acquisition Agreement by and between the City of Lake Elsinore (the "City") and
, [type of entity], and described in Exhibit A-I to that Agreement), all as more
fully described iil Attachment I . hereto. In connection with this Payment Request, the .
undersigned hereby represents and warrants to the City and the District as follows:
I. 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 I hereto with respect to any such Public Facility, and such drawings or
plans and specifications, as applicable, are true, correct and complete.
3. All costs of the Public Facilities or Discrete Component for which payment is
requested hereby are Actual Costs (as defined in the Agreement referenced above) and have not
been inflated in any respect. 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 was
constructed in accordance with the requirements of the Acquisition Agreement and in
compliance with any applicable prevailing wage requirements.
6. The Owner is in compliance with the terms and provisions of the Acquisition.
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 Component (a detailed
calculation of which is shown in Attachment I hereto for each Public Facility or Discrete
Component) has been calculated in conformance with the terms of Article N of the Acquisition
Agreement.
BI-j.
ACENDA ITEM NO. "31
PACU 3 c; OF 'd.}'<<)
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I hereby declare under penalty of perjury that the above representations and warranties U
are true and correct.
OWNER:
Castle & Cooke Alberhill Ranch, LLC,a
California limited liability company., . .
By:
Authorized Representative of Owner
Date:
CITY:
Payment Request Approved for Submission to
Trustee
. By:
Director of Community Development
Amount Approved: $
Date:
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ACENDA ITEM NO. ~ I
PACE_I ~~ OF rl..~ Q
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ATTACHMENT 1
SUMMARY OF PUBLIC FACILITIES AND DISCRETE COMPONENTS
TO BE ACQUIRED AS PART OF PAYMENT REQUEST NO.
Ref. No.
Facilitv/Discrete
Component
Actual Cost
Disbursement
Requested
[List here all Facilities for which payment is requested,
and attach support documentation]
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AGENDA ITEM NO. 3 (
PAGEJ ~ 1 OF d.). ()
EXHIBIT B-2
FORM OF PAYMENT REOUEST (FEES)
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1: The undersigned (the "Developer") hereby requests payment in the amount of
$_ ("Requested Amount") from the Accouilt of the Acquisition and Construction
Fund established by CFD No. 2005-2 for the Fees (as defined in the Funding, Construction and
Acquisition Agreement, dated as of , 2005 relating to CFD No. 2005-2.
No. and Description of
Lots/DUs for wbicb .Fees
Fee Catel!orv Amount Requested Requested
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2. The Requested Amount is due and payable and has not formed the basis of any
prior request or disbursement.
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3. The Developer is in compliance with the terms and provisions of the Acquisition
Agreement.
4. Neither the Developer nor any Affiliate (as defined in the Funding, Construction
and Acquisition Agreement) is in default in the payment of ad valorem real property taxes or
assessments of special assessments or taxes levied in the District (as defined in the Funding,
Construction and Acquisition Agreement). .
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ACENDA ITEM NO. 3> l
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I hereby declare under penalty. of perjury that the above representations and warranties
are true and correct.
CASTLE & COOKE ALBERHILL RANCH,
LLC, a California limited liability company
Date:
. By:
Name:
Title:
By:
Name:
Title:
. CITY:
Payment Request Approved for Submission to
Finance Director
Date:
By:
Director of Public Works
Amount Approved: $
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ACENDA ITEM NO. 3 \
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EXHIBIT C
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FORM OF ASSIGNMENT AND ASSUMPTION AGREEMENT
Pursuant to a Funding, Construction and Acquisition Agreement dated as of
I, 200_ (the "Agreement") by and between the City of Lake Elsinore ("City")
and , [type of entity] (the "Owner"), which Agreement is hereby
incorporated herein by this reference, and for good and valuable consid~ration, receipt of which
is hereby acknowledged, the undersigned agree as follows:
I. 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 CFD No. 2004-1 and described in "Attachment
I" 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 authorized to be funded
with respect to the Improvement Area 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.
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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.
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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
AOENDA ITEM NO. 31 .
PAOEJ.:iLOF~:\ ()
ATTACHMENT 1
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DESCRIPTION OF SUBJECT PROPERTY
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AGENDA ITEM NO.
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EXHIBIT "D"
DESIGN, BID AND CONTRACT REQUIREMENTS
FOR CITY IMPROVEMENTS
Desil!u Phase
A. Only design costs directly related to the Public Facility to be acquired are eligible for
inclusion.
BiddiUl! Phase
A.. Bidding Documents. Unless otherwise noted, the bidding documents shall conform to the
following minimum requirements:
;" '
1. Unless impractical due to the nature of the Public Facility, the bid proposal shall
be unit priced rather than lump sum or time and materials. A.C. pavement, base and sub-base
shall be bid on a square foot per inch thickness basis.
2. It is recommended that the bidding documents require the bidder/contractor to
provide the.following bonds:
a.
Bid Bond - 10% ofthe amount of the bid.
3. . The bidding documents shall require the successful bidder to provide evidence of
comprehensive public liability insurance in the amount of at least $1,000,000 prior to the award
of the contract.
4.
contractor.
The bidding documents shall provide for monthly progress payments to the
5.
The contractor shall be required to pay prevailing wages.
6. The bidding documents must clearly state the time, date, and place where bids are
to be submitted' and opened. .
7. The bidding documents shall clearly state the amount of time to complete the
work. The time allowed must be reasonable for the amount of work. Accelerated construction
time allowances must be supplementally bid, and are not eligible for public finance unless
previously approved by the City.
B. Owner shall keep a log of all persons obtaining bidding documents, and their mailing
address.
c. . Addenda shall be mailed by first class mail to all bidding document holders and the
Director.
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AOENDA ITEM NO. 3 I
PAGEJ:llOF "A)'()
D.
Submitted bids shall be in sealed envelopes.
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E. Bids shall not be accepted after the stated time for submission.
F. Bid opening shall be conducted by the Owner at the Owner's place of business or other
site mutually acceptable to the Owner and Director.
G. Sealed bids shall be opened and read aloud immediately following the submission time.
A City representative shall be invited to attend the bid opening.
H. Conditioned bids, unless the bid proposal lists them for all to bid on, shall not be
accepted.
I. The arithmetic of the two lowest bid proposals received shall immediately be checked for
"
errors. '.l.'
J. A tabulation of all bids received shall be provided to the Director. .
K. Award shall be made to the lowest responsible bidder within a reasonable period of time.
L. A preconstruction meeting shall be held with the contractor prior to beginning the work.
A City representative shall be invited to attend the meeting.
M. The Notice to Proceed shall be issued within a reasonable period oftime following the
contract execution.
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Construction Phase
A. The Director shall be provided a copy of the construction schedule.
B. Owner shall require the contractor to conduct weekly construction status meetings,to
which a City representative shall be invited.
C. Any additional costs incurred for the benefit of the Owner, such as accelerating the
construction schedule, shall not be eligible for public financing unless previously approved by
the City. .
D. Any additional construction costs incurred due solely to delays caused by the Owner shall
not be eligible for public financing.
E. All contracts and construction related records shall be available to the City as and when
required for the final determination of eligible costs for the public financing.
General
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The above rules shall be applied to all Public Facilities proposed to be acquired through the
. Community Facilities District. Any deviation from the rules must be approved by the Director.
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AGENDA ITEM NO. 3>1
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Draft POS October 24, 2005
NOT RATED
(See "CONCLUDING INFORMATION - No Rating on the Bonds" herein)
In the opinion afFulbright & Jaworski L.L.P., Los Angeies,- California. Bond Counsel, under existing law, interest on th~ 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(0) of the Internal Revenue Code of 1986, from the gross income of the owners thereof for
federal income tax purposes and is not an item of tax preference for purposes of the federal alternative minimum lax. See. however,
"LEGAL MAITERS - Tax Exemption" herein-regarding certain other tax considerations.
NEW ISSUE-BOOK ENTRY ONLY
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COUNTY OF RIVERSIDE
STATE OF CALIFORNIA
Dated: Date of Delivery
$24,345,000*
CITY OF LAKE ELSINORE
COMMUNITY FACILITES DISTRICT 2005-2
(ALBERHILL RANCH) SPECIAL TAX BONDS
(IMPROVEMENT AREA A) 2005 SERIES A
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 tbe investment quality oftbe Bonds.
Interest on the Bonds is payable semiannually on March I.and September 1 of each year, commencit'lg March 1, 2006, until maturity or
earlier redemption (see "THE BONDS. General Provisions" and "THE BONDS - Redemption" herein).
The information contained within this Official Statement was prepared under the direction
of the City by the following fmn serving as Financing Consultant to the City.
Rod Gunn Associates, Inc.
MATURITY SCHEDULE
$ * SERIAL BONDS
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Maturity Date
Sentember J
Principal
Amount.
Interest
Blli
Reoffering
Rate
Maturity Date
Seotember 1
Principal
Amount.
Interest
Rare
Reoffering
Rate
$
$
20]4
20]5
20]6
20]7
20]&
20]9
2020
... _0/0 Term Bond due September 1, 2025, Price _0/0
2007
200&
2009
20]0
2011
20]2
2013
... _0/0 Term Bond due September 1,2030, Price _0/0
$ ... _0/0 Term Bond due September 1, 2035, Price ______0/0
The Bonds will be issued under the Mello-Roos Community Facilities Act of 1982, as amended (Sections 533 J1 et seq. of the
Government Code of the State of Cali fomi a). Repayment of the Bonds will be from Special Taxes (as defined herein) to be levied within
Improvement Area A of the City of Lake Elsinore Community Facilities District No. 2005-2 (Alberhill Ranch). 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 fo'nn, will be available for delivery through the facilities of The
Depository Trust Company on Or about -----' 2005 (see "THE BONDS - General Provisions - Book-Entry Ouly System" herein):
The date afthe Official Statement
.2005.
. Preliminary, subject to change.
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SOUTHWEST SECURITIES
AGENDA ITEM NO. :3 (
PAGE~OF a~O
CITY OF LAKE ELSINORE .
COMMUNITY FACILITIES DISTRICT NO. 2005-2 (ALBERHILLRANCH)
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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 of Administrative.Services
Frederick Ray, Deputy City Clerk
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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, Inc.
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
Empire EconomiCs, Inc.
Capistrano Beach, California
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FOR ADDITIONAL INFORMATION
Matt Pressey,.City of Lake Elsinore, California (9Si) 674-3124
Rod GunnAssociates, Inc. (714)841-3993 .
Southwest Securities, Inc. (949) 717-2000
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ACENDA ITEM NO. "3 \
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.' TABLE OF CONTENTS
INTRODUCfORY STATEMENT .........................1 Limitations on Remedies ......,..................................30
The City and the District............................................ I Right to Vote on Taxes Act ......................................31 .
Security and Sources of Repayment ...........,..............2 Ballot Initiatives and Legislative Measures............. 3 I
Purpose ......................................................................3 .Early Bond Redemption ..........................................31
The Bonds..................................................................3 Loss of Tax Exemption ............................................32
Legal Matters.............................................................4 IRS Audits ...............................................................32
Professional Services ....................... .............. ............4 Secondary Marke!......... ............ ..... ........... ............... 32
Offering of the Bonds ................................................5 Debt Service Coverage ............................................33
Information Concerning this Official Statement........5
SELECTED ESSENTIAL FACfS............................8
THE BONDS.............................................................IO
General Provisions .......... ......................................... I 0
Authorization ........................................................... 13
Estimated Sources and Uses of Funds ..................... 13
Investment of Funds ................................................ 13
Redemption........... ...... ............................. ....... ......... I 4
SOURCES OF PAYMENT FOR THE BONDS...,.16
Genera!..... ..................................... ..................... ......16
Special Taxes ...........................................................16
Reserve Account ......................................................16
Capitalized Interest ..................................................17
Covenant for Superior Court Foreclosure ................ I 7
Special Taxes Are Not Within Teeter Plan ............... I 8
BONDOWNERS' RlSKS.........................................19
Genera!............................................................. ........ I 9
Limited Obligation................................................... I 9
Insufficiency of Special Tax Revenues .................... I 9
Concentration of Ownership ....................................20
No Personal Liability for Special Taxes...................20
Foreclosure and Sale Proceedings ...........................20
Land Values ...................................................;.,:......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 ............'........27
Disclosure to Future Land Buyers ..............:.'............27
Billing of Special Taxes ...........................................27
Collection of Special Tax.....................:...................28
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
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THE.CITY.................................;...............................35
IMPROVEMENT AREA A .....................................36
Boundaries "fthe District.........:..............................36
Facilities to be Financed by the District ..................36
The Developer .........................................................38
Description ofDevelopmimt....................................39 .
Development Schedule ............................................41
Financing Plan .....................................................,...42
DEBT STRUCTURE................................................44
Outstanding Indebtedness .......... ............ ............ ...... 44
Additional Obligations ............................................44
Direct and Overlapping Deb!....:..............................44
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
Rate and Method of Apportionment ........................58
Delinquencies and Foreclosure Actions...................62
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LEGAL MATTERS..................................................63
Enforceability of Remedies .....................................63
Approval of Legal Proceedings ...........................:...63
'Tax Exemption.... ........... ............... ............... ............ 63
Absence Of Litigation ...............................................65
CONCLUDING INFORMATION .......................,..66
No Rating on the Bonds...........................................66
Underwriting....... .......... ............ :...... ........................ 66
Experts. .......... ..... ..... .............. ............ ............... ....... 66
The Financing Consultant........................................66
Additional Infonnation .......... ... ........ .......... ....... ...... 66
References ........... ....... ... ............ ............. ... .............. 67
Execution .... .............. ................... ................... .........67
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ACENDA ITEM NO. 3 (
PACE~OF aYJ
APPENDIX A DEFINITIONS OF CERTAIN
TERMS USED IN TIlE FISCAL AGENT
(I AGREEMENT .................................................... A-I
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-1
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AGENDA ITEM NO. -:s I ..
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Lake Elsinore Vicinity Map
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AGENDA ITEM NO. -s I
PAGE.1S!LOF "d..1...0
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OFFICIAL STATEMENT
$24,345,000* .
CITY OF LAKE ELSINORE
COMMUNITY FACILITIES DISTRICT 2005-2
(ALBERHILL RANCH) SPECIAL TAX BONDS
(IMPROVEMENT AREA A)
2005 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 2005-2 (Alberhill Ranch) Special Tax Bonds (Improvement AreaA) 2005 Series A (the
"Bonds"), in the aggregate principal amount of $24,345,000* .
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 summariied 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 10 the ~onds (see "BONDOWNERS'RISKS" herein).
(\ The City and the District
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
of the new County of Riverside. The City encompasses approximately 39 square miles, with over 10
miles of lake shore, and is located 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 Lak!', Murrieta and Temecula (see "Vicinity Map" herein) herein). .
The District. The Mello-Roos Community Facilities Act of 1982, as amended, constituting Sections
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 or
Apportio~ment" herein). .
* Preliminary, subject to change.
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On September 13, 2005, the City formed City of Lake Elsinore Community FaciJitiesDistrict No. 2005-2
(Alberhill Ranch) (the "District") by the adoption of Resolution No. _' The District consists of 3
improvement areas (each an "Improvement Area" and collectively, the "Improvement Areas"). Each
Improvement Area has a separate rate and method of apportiomnent of special tax approved by the City
and the qualified electors within each respective Improvement Area. The qualified electors within each
Improvement Area voted in favor of the incurrence of bonded indebtedness and each Improvement Area
has a separate bond authorization. The Maximum authorized bonded indebtedness for Improvement Area
A is $28,000,000. (see "DEBT STRUCTURE," "SELECTED ESSENTIAL FACTS" and "FINANCIAL
INFORMATION _ Rate and Method of Apportionment" herein). The special tax authorized to be levied
within Improvement Area A to pay for certain facilities capital fees and to pay debt service on the Bonds
is described in the Rate and Method of Apportiomnent of Special Taxes 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 Alberhill Ranch. The
District is located in the northern portion of the City, I 1/2 miles west of the Interstate IS freeway and
south of Lake Street. Alberhill Ranch is planned for a total of 1,181 single family homes and
approximately 389 multifamily homes on approximately 489 gross acres. Development within the
approximately 132 acre Improvement Area A is planned for 442 single family homes in four residential
communities (the "Development") (see "IMPROVEMENT AREA A - Description of the Development" herein).
Castle & Cooke Alberhill Ranch, LLC, a California limited liability company (the "Developer"), currently
owns all of the land in Improvement Area A and is in the process of constructing homes in all four of the
communities (Tract Nos. 28214-1, 28214-2,28214-3 and 28214-5)(see "IMPROVEMENT AREA A-"The
Developer" herein). As of October 15,2005,4 model homes were complete 'and43 production homes were.
under construction in Tract No. 28214-1 and 4modelhoIl)es were complete and 52 production homes
were under construction in TracfNo. 28214-2. As of October 16, 2005, 18 homes in Tract No. 28214-1
had closed escrow and an additional 70 homes within Tract Nos. 28214-1 and 28214-2 were sold but
escrows have 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
November I, 2005 (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 Spedal 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 levied on such land within Improvement Area A (see
"IMPROVEMENT AREA A" for a description of Improvement Area A and "FINANCIAL INFORMATION -'
Rate and Method of Apportionment" for a description of the Special Tax within Improvement Area A) (see
"SOURCES OF PAYMENT FOR THE BONDS" and "BONDOWNERS'RISKS" herein).
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The Bonds are special obligations of tbe District. Tbe Bonds do not constitute a debt or liability of
the City, the State of California or of any political subdivision thereof, other than the District. Tbe
District'shan only be obligated to pay the principal of the Bonds, or the interest thereon, from the
funds described herein, and neitber 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 tbe
interest on the Bonds. See "SOURCES OF PAYMENT FOR THE BONDS" and "BONDOWNERS' RISKS"
herein.
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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 Elsinore Municipal Water District,
related to Improvement Area A (the "Facilities") (see "IMPROVEMENT AREA A - Facilities to be Financed
by the District"), to fund interest on'the Bonds to and including September I,. 2006, to pay the expenses of
the District and the Developer in connection with the fonnation of the District and issuance of the Bonds
and to make a deposit tothe Reserve Account. The amount of the deposit into the Reserve Account will
be in the amount equal to $ · (see "THE BONDS - Estimated Sonrces and Uses of Funds"
herein).
The Bonds
Redemption. The Bonds are subject to mandatory redemption, without premium, prior to their maturity
date, in part by lot on September I in each year commencing September I, 2021 with respect to the Bonds
maturing September I, 2025, commencing September I, 2026 with respect to the Bonds maturing
'September I, 2030 and commencing September I, 203 I with respect to the Bonds maturing September 1,
2035 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 I,
2015, 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).
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The Bonds are subject to nidemption, 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
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 fonn without
coupons. Any Bond may, in accordance with its tenns, 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 fonn only in the principal amount of
$5,000 each or 'any integral thereof. Purchasers of the ,Bonds will, not receive certificates representing
their Bonds purchased (see "THE BONDS - General Provisions - Book-Entry Only System" herein).
. Preliminary, subject to change.
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Payment. Principal of the Bonds and any premium upon redemption will be payable in each of the years U
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 . U
be passed on for the City by Van Blarcom, Leibold, McClendon & Marm, 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 & AndersonLLP, Lake Forest,
California, Underwriter's Counsel.
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 bC 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.
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Offering of the Bonds
Authority for Issuauce. The Bonds are to be issued and secured pursuant to the Fiscal Agent Agreement,
as authorized by Resolution No. _ of the City adopted on~. The Bonds are also issued in
accordance with the laws of the State of California (the "state"), and particularly the Mello-Roos
Community Facilities, Act of 1982, as amended (Section 53311 et seg. 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 No. _ adopted on ,2005.
Offering and Delivery o( tbe 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. 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 ,2005.
No dealer, broker, salesperson or 'otber person has ,been autborized by tbe District, tbe City, the
Financing Consultant or tbe Underwriter to give any information or,to make any representations in
connection witb tbe offer or sale of tbe Bonds described berein, otber tban as contained in tbis
Official Statement, and if given or made, sucb otber information or representations must not be,
relied upon as baving been authorized by any ofthe foregoing;
Tbis, Official Statement does not constitute an offer t~ sell nor tbe solicitation of an offer to buy, nor
sball tbere be any sale of tbe Bonds by any person in any jurisdiction in wbicb it is uidawful for
sucb' person to make sucb offer, solicitation or sale or to any person to wbom it is unlawful to make
sucb 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 QEALER
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. '
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ACENDA ITEM NO. '3 (
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Preliminary OffieiaI 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 the 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 odn'the affairs of the District since the date hereof.
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Continuing Diselosure, 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 Improvement Area A 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 2004/05 and the Developer has agreed to make such
information available not later than 120 days after the end of the Developer's fiscal year, commencing
with fiscal year 2004/05 (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 Annual Reports with each Nationally Recognized Municipal Securitil,s
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). 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 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 Improvement Area A. The District has '
never failed to meet its coritillUing disclosure requirements under such rule in any material manner. To
the Developer's actual knowledge, it has never failed to comply in all material respects with any previous
undertakings imposed' upon it to provide disclosure reports or notices of material events pursuant to such
code.
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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:
I. 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, 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: '
I. The District or its Fiscal Agent fails to pay principal and interest due on any scheduled payment
date.
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2. Funds are withdrawn from imy 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 herei;' 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 Fiscai Agent Agreement.
Definitions of certain terms used herein are set forth in "APPENDIX A" hereto. Copies of the docinnents
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 (7J4) 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.
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AGEN~~~E~ ~1_~ k~~
SELECTED ESSENTIAL FACTS
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The following summary doesilOt 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 Improvement Area A. Neither the City nor the District makes any
representation as to the current value of property in Improvement Area A or provides any assurance as to
the estimated values of property being achieved (see "BONDOWNERS' RISKS" herein).
THE BONDS
Primary Source of Revenues for Repayment:
$24,345,000'
No Additional bonds on a parity with the 'Bonds aie
authorized (see "DEBT STRUCTURE -Additional
Obligations" herein).
September I, 2015 at 102% of Principal Amount (see
"THE BONDS-Redemption" herein). .
On any date from prepayment of Special Taxes at a .
premium, as described herein.
Special Taxes levied within Improvement Area A as
defined herein (see "FINANCIAL INFORMATION - Rate
and Method of Apportionment" herein).
All Bonds are secured by a first pledge of and lien on all
Special Taxes levied within Improvement Area A (see
"SOURCES OF PAYMENT FOR TIlE BONDS" and
"BONDOWNERS'RISKS" herein).
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Principal Amount of Bonds:
Additional Bonds:
First Optional Redemption Date: .
First Special Mandatory Redemption Date:
Priority:
IMPROVEMENT AREA A
Estimated Acreage:
132 gross acres
Discounted "Bulk Value" of Parcels
in Improvement Area A
$90,900,000
Ratio of Market Value to Principal
Amount of Bonds: 3.73' to 1. The value to lien ratio of individual
parcels may be less or more than the aggregate value to
ratio for Improvement Area A (see "Bondowners
Concentration of Ownership" herein) .
Minimum Ratio of Authorized Maximum
Annual Special Taxes in any Fiscal Year
to Annual Debt Service on the Bonds:
lien
Risks -
110%
* Preliminary, subject to change.
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PROPERTY OWNERS AND DEVELOPMENT
Property Owner:,
Description of Proposed Development:
Government Approvals:
Start of production homes:
Estimated Absorption Period:
Estimated Price Range of Homes:
Estimated Home Sites:
, <'.
Castle & Cooke Alberhill Ranch, LLC, a. California
limited liability company (see "BONDOWNERS' RISKS-
Concentration of Ownership" and "IMPROVEMENT
AREA A - The Developer" herein).
The Developer expects to construct 442 single family .
homes in 4 residential communities in Improvement
Area A. As October 16, 2005, 88 homes have been sold
of which 18 homes have closed escrow (see
"IMPROVEMENT AREA A-Description of Development"
herein), .
All final maps have been recorded.
Production homes started in February 2005 and
escrows commenced dosing in September 2005.
2005 to 2009
$360,000 to $550,000 .
1,600 to 3,833 sq. ft.
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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 February 15,2006, in which event interest with respect thereto
will be payable from 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 milil,
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 oil 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 tIie 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 Citytilkes 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 I7A 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, "NSeC", "FlCe", and "EMCC", also subsidiaries
ofDTCC), as well as by the New York Stock Exchange, Inc., the American Stock Exchange LLC, and the
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ACENDA ITEM NO. '3 ~ ~
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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 aDd Indirect Participants'
records. Beneficial Owners will not receive written confirmation from DTC oftheir 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 tninsaction. Transfers of ownership interests in the Bonds are to be
accomplished by entries made on the books of Direct and lndirect 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 ofthe 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'mime
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 mayor 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, Benefidal 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, ifany, and interest evidenced by"the Bonds will be made to Cede &.
Co., or such other nominee as may be requested by an authorized representative ofDTC. 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
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AGENDA ITEM NO.
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Bonds Mutilated, Lost, Destroyed or Stolen. If any Bond becames mutilated, the District, at 'the
expense af the Bandawner, will execute, and the Fiscal Agent will thereupan authenticate and deliver, a
new Band af like series, tenar and autharized denaminatian in exchange and substitutian far the Band so.
mutilated, but anly upan surrender to. the Fiscal Agent af the Band sa mutilated. Every mutilated Band sa
surrendered to. the Fiscal Agent will be canceled by it. If any Band issued under the Fiscal Agent
Agreement is last, destroyed ar stalen, evidence af such lass, destructian ar tbeft may be submitted to. the
, Fiscal Agent and tbe District and, if such evidence is satisfactary to. them and indemnity satisfactary to.
them is given, tbe District, at the expense af the Bandawner, will execute, and tbe Fiscal Agent will
thereupan authenticate and deliver, a new Band af like series and tenar in lieu af and in substitutian far
the Band sa last, destrayed ar stalen. Any Band issued under the pravisians af the Fiscal Agent
Agreement described in tbis paragraph in lieu af any Band alleged to. be last, destrayed ar stalen will be
equally and propartianately entitled to the benefits af tbe Fiscal Agent Agreement with all atber Bands'
secured by the Fiscal AgentAgreement.
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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 legislating body of the District, pursuant to
Resolution No. adopted on ,2005. '
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 ofthe Bonds
Original Issue Discount
Underwriter's Discount
$24,345,000*
Total
Uses of Funds
Acquisition and Construction Fund
Interest Account (I)
Reserve Account.(2)
Costs of Issuance Account (3)
Total
(1) Estimated capitalized interest through September 1,2006.
(2) Equal tothe Reserve Requirement. '
(3)'.E!,penses include fees of .Bond Coun'sel, Fi~ancing 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.
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. ]n'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,
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AGENDA ITEM NO. .3 J
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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 1,2015, 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: .
Redemntion Periods
September I, 2015 through August 31, 2016
September 1, 2016 through August 31, 2017
September 1,2017 and thereafter
Redemntion Prices
102.0%
101.0%
100.0%
Special Mandatory Redemption from Prepayment of Special Taxes. The Bonds are subject to
mandatory redemption prior to maturity on any date, 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:
Redemoti,on Periods
Redemotion Prices
March I, 2006 through August 31, 2010
September 1, 2010 through August 31,2015
September I, 2015 and thereafter
103.0%
102.5%
as provided for optional redemption
Mandatory Sinking Payment Redemption. The Bonds maturing September I, 2025, September I,
2030 and September I, 2035 are subject to mandatory redemption, in part by lot, on September 1 in each
. year commencing September 1, 2021 with respect to the Bonds maturing September I, 2025,
commencing September 1, 2026 with respect to the Bonds maturing September I, 2030 and commencing
September 1, 2031, with respect to the Bonds maturing September I, 2035, 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.
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SCHEDULE OF MANDATORY SINKING PAYMENT REDEMPTIONS
TERM BONDS MATURING SEPTEMBER 1, 2025
September 1
X!l!!
2021
2022
2023
Principal
Amount'
September 1
Year
2024
2025
Principal
Amount ·
* Preliminary, subject to change.
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SCHEDULE OF MANDATORY SINKING PAYMENT REDEMPTIONS
TERM BONDS MATURING SEPTEMBER 1, 2030
September 1
Year
2026
2027
2028
Principal
Amount *
Septem ber 1
Year
2029
2030
Principal
Amount *
SCHEDULE OF MANDATORY SINKING PAYMENT REDEMPTIONS
TERM BONDS MATURING SEPTEMBER 1, 2035
September 1
Year
2031
2032
2033
Principal
Amount *
September 1
fur
2034
2035
Principal
Amount *
Special Mandatory Redemption.
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The Bonds are subject to special mandatory redemption on any date from unused proceeds of the Bonds
after completion or abandorunenl 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 Improvement
Area A, 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" IMPROVEMENT AREA
A.,. 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 th.e 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 mml,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
surrenaer 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 ari aggregate principal amount equal to the unredeemed portion of
the Bond to be redeemed. ..
'" Preliminary,-subject to change.
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ACENDA ITEM NO. :3 I ci
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SOURCES OF PAYMENT FOR THE BONDS
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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 Improvement Area A and funds held by'
the Fiscal Agent and available for such purposes pursuant to the Fiscal Agent Agreement.
Tbe Bonds are limited obligations of tbe District payable solely from tbe proceeds of Special Taxes
levied on certain parcels witbin Improvement Area A. Tbe Bonds sball not be deemed to constitnte
a debt or liability of tbe City or tbe State of California or of any political subdivision tbereof, otber
tban tbe District. Neitber tbe faitb and credit nor tbe taxing power of the City, tbe State of
California or any of its political subdivisions is pledged to tbe payment of tbe principal of or tbe
interest on tbe 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;
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Although the Special Taxes will constitute a Iieri,onparcels of real property within Improvement Area A,
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
Improvement Area A, 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 "IMPROVEMENT AREA A" 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 ofthe Reserve Requirement will be deposited into theAcquisition 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
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mandatory redemption, amounts on deposit in the Reserve Account shall be reduced (to an amount not
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 ol! the Bondsdue 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 Boilds. hi
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 Improvement Area A of the District are delinquent in
th~ 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 I determination date) or September I (with.
respect to the August I 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 Improvement Area A 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 ofthe 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
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diligently pursued to completion, the Act does not require the District or the City to purchase or otherwise U
acquire any lot or parcel of property sold at the execution sale pursuant to the judgment in any such action
if there is no Jlther 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
Improvement Area A 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 Insnrance 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 470 I 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.
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BONDOWNERS'RISK,S .
General
BEFORE PURCHASING ANY OF 1BE BONDS, ALL PROSPECTIVE INVESTORS AND 1BEIR
PROFESSIONAL ADVISORS SHOULD CAREFULLY CONSIDER, AMONG 01BER TIllNGS, 1BE
FOLLOWING RISK FACTORS, WHICH ARE NOT MEANT TO BE AN EXHAUSTIVE LISTING OF ALL
RISKS ASSOCIATED WITH 1BE. PURCHASE OF 1BE BONDS. MOREOVER, 1BE ORDER OF
PRESENTATION OF 1BE RISK FACTORS DOES NOT NECESSARILY .REFLECT 1BE ORDER OF 1BEIR
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
Improvement Area A, 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 wiih respect to Improvement Area A
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
Improvement Area A.
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 insiituted, any holder of a mortgage or deed of trust could, but would not be reqllired ,
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 Improvement Area A I)ot otherwise.
exempt from the Special Tax is acquired by a public entity through a negotiated transaction, or by gift or
d.evise; 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 bya 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 Improvement
Area A up to the Maximum Annual Special Tax. This reallocation. would result in the owners of taxable
properties within Improvement Area A subject to the Special Tax paying a greater amount of the Special
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Tax and could have 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 Improvement Area A was owned by the Developer and approximately 18 individual
homeowners (see "IMPROVEMENT AREA A" herein). The only assets of the Developer and the individual
homeowners which constitutes security for the Bonds are their, property holdings assessed within
Improvement Area A. There are expected to be subsequent transfers of ownership of the property within
Improvement Area A to individual owners of single family homes during the development of the land
within Improvement Area A. The fact that the Developer owns most of the land within Improvement
Area A presents substantial risk to the Bondowners.,
No Personal Liability for Special Taxes
No property owner, 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 Improvement Area A, in the manner described herein. Accordingly, the Developer's' financial
statements are not included in this Official Statement. N!> property owner" is obligated in any manner to
continue to own any of the land it presently owns within Improvement Area A.
Fl?reclosure and Sale Proceedings
Payment of the Special Taxes is secured by the parcels assessed. In the even! an annual installment ofthe
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 itl 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 govermnental 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 suborditlated to bankruptcy law priorities.
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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 Improvement Area A
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 Improvement Area A 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 c'!ITent aggregate market .
value of land in the Improvement Areas.. .
1. Market Absorption Study, Community Facilities District No. 2005-2 (Alberhill Ranch) City of .
Lake Elsinore, Riverside County, California prepared by Empire Economics, Inc., Capistrano Beach,.
California, August 19,2005,2005.
2. Appraisal Report, City of Lake Elsinore Community Facilities District No. 2005-2 (Alberhill
Ranch). Improvement Area A prepared by Harris Realty Appraisal, Newport Beach, California (the
"Appraisal"), dated October 18, 2005
Collectively, the studies are referred to herein as the "Appraisal Documents".
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The purpose of the Appraisal was to estimate the aggregate retail value ofthe parcels in its "as-proposed"
condition (which assumes sale of the Bonds and construction of publicly-financed improvements), as well
as the discounted "bulk sale" value of all parcels within. Improvement Area A.
On the. basis of the assumptions and limitations described in the Appraisal and in the Market Absorption
Study, the Appraiser has estimated the aggregate discounted "bulk sale" value of all the parcels. in
Improvement Area A as of October IS, 2005 to be $90,900,000, which is approximately 3.73* times the.
principal amount of the Bonds and all overlapping debt (as described under the heading "IMPROVEMENT
AREA A - Direct and Overlapping Debt" herein).
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 Improvement Area A will vary in some cases significantly. The actual vallie 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 bas.e 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.. .
* Preliminary, subject to change.
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Appraisals in general are the result of an inexact process, and estimated market value is dependent, in U
part, upon assumptions which mayor 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. 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 Improvement Area A would be reflected depending upon personal professional
interpretation of data, fads 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 Improvement Area A, and prospective purchasers of the Bonds are referred to the
Appraisal Documents referred to above in evaluating the value of real property within Improvement Area
A. '
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, all parity bonds and all overlapping debt (as described under the heading
"THE DISTRICT - Direct and Overlapping Debt" herein. 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 $90,900,000. Therefore, the value
to lien ratio is 3.73* to I. 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 U
more than undeveloped property (see "Concentration of Property Ownership" above)~
Investors must recognize the uncertainties with respect to tbe fair market valnes 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 valne, 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.
. . '. ,
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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; goverrunental 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.
* Preliminary, subject to change.
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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.
Further, the risk to the owners of the Bonds of development delays may be heightened whe~ 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 Improvement Area A,
and levy of the Special Taxes is not dependent on the completion .of the development of the ,properties
within Improvement Area A (see "FINANCIAL INFORMATION - Rate and Method of Apportionment"
herein. Nevertheless, the extent of completion of the development of the property within Improvement'
Area A may affectthe ability and willingn"ss 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,
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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 ofthe 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 Improvement Area A. 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
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 th~ 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 fed~rallevel related to
the listing and possible listing of certain plant and animal species found in the State asendangere<l species
and in programs designed to set aside additional geographical areas for habitat conservation. Although
none of the areas within Improvement Area A has been included in the Western Riverside County Multi
Species Habitat Conservation Plan (MSHCP) study area, there is no assurance that such areas will remain
excluded from the MSHCP study area or future study areas. An increase in the number of endangered
species andlor 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 Improvement Area A is not knowti 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
additi\ln to the endangered species list. Further approval may be required for any planned clearing ofland
(\ or construction across or impacting waterways, creeks or other drainages. If required, there is no
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assurance that such approvals will be obtained and that development will be permitted to proceed as U
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
Improvement Area A could negatively affect the Developer's ability to complete the development of the
properties within Improvement Area A as planned. This, in turn, could redlicethe 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 Improvement Area A could result in substantial damage to properties in Improvement
Area A 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 Improvement Area A. 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 Improvement
Area A 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 Improvement Area A to ensure that each building is designed and constructed to meet, at a
minimum, the highest seismic standards required by law.
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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 th~ 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 Improvement Area A 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 seriOl.ls 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
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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
Improvement AreaAbe 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. ' '
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 Improvement Area A.
However, it is possible that such liabilities do currently exist.
Further, it is possi1:>le 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 laws affecting the rights of
creditors generally.
Although bankruptcy proceedings would not cause the Special Taxes to become extinguished, baclcruptcy
of a property owner or of a partner or other owner of a property owner within Improvement Area A 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
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Taxes could be reduced if the value of the. property were determined by the bankruptcy court to have U
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 Improvement Area A 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 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, ] 992, 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 U.
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] 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]] U.S. C. Section 362(b)(18) on the Special Taxes depends upon whether a court
were to determine that the Special Taxes should be treatecllike ad valorem taxes for this purpose.
Additional Taxation
On June J, ]986, California voters approved an amendment to Article XJIlA of the California
Constitution to allow local governments and school districts to raise their property tax rates above the
constitutionally mandated ] % 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. ]f any such voter-approved debt is issued, it may be on a parity with the
lien of the Special Taxes on the parcels within Improvement Area A.
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Parity Taxes and Special Assessments
The Special Taxes and any penalties thereon will constitute a lien against the lots and parcels of land
within Improvement Area A oil 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 Improvement Area A. 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 Improvement Area
A. Any such special taxes or 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 Improvement Area A could greatly increase, without
any corresponding increase in the value of the property within Improvement Area A 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 Improvement Area A to pay the Special Taxes when due.
Disclosure to Future Land Buyers
A "Notice of Special Tax Lien" for Improvement Area A 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 Improvement Area A 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. Whiletitle
insurance and search companies normally refer to such notices in title reports, and sellers of property
within Improvement Area A are required to give prospective buyers a notice of special tax in accordance
with Sections 53360.2 or 53341.5 ofthe 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 Improvement Area A 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 Improvement Area A 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 Improvement Area A
which were entered on the Assessment Roll of the County Assessor by January I 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 forSnperior 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.
27
AGENDA ITEM NO. "3 (
PAGE.-Ol-OF ~:~ Cl
Collection of Special Tax
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In order to pay debt service on the Bonds, it is necessary that the Special Tax levied against land within
Improvement Area A 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 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 besold
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 atthe foreclosure sale ifthere is no other purchaser
at such sale. See "SOURCES OF PAYMENT FOR THE BONDS - Covenant for Superior Conrt 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 Improvement Area A 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
Improvement Area A is subject to the maximum rates provided in the Rate and Method of Apportionment.
Thefe 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 U
Apportionment" .
Exempt Properties
Certain properties are exempr 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 or Improvement Area A are exempt from the
Special Tax; provided, however, that property within Improvement Area A 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 oflevy, the Special Tax may be reallocated to the
remaining taxable properties within Improvement Area A. 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. Improvement Area A 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.
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AGENDA IlE,jf- Oi.} 0
. PAGE OF
n The Act further provides thatno 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 ofthe 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.
n
Insufficient Special Taxes
Under the Rate and Method' of Apportio~ent, the annual amount of SpeCial Tax to be levied on each
taxable parcel in Improvement Area A 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 Unde1(eloped 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 ofthe 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 stat~ 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-
29
ACENDA ITEM NO. ~ \
PACE~OF J.."1O
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 \..V
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-RoosAct 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.
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 9th Circuit (the "9th 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 9th 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 \..V
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 t!te tax-~xempt status of the
Bonds. Bond Counsel has limited its opinion as'to the enforceability ofthe Bonds and ofthe 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 -Bankrupicy' and Foreclosure Delays", "Billing of Special Taxes'" and "Property
Controlled by Federal Deposit Insurance Corporation and Other Federal Agencies" herein. '
','
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AGENDA ITEM NO. $ i
PAGE \ ~CLOF ~~O
n
Right to Vote on Taxes Act
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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
XIlIC ("Article XIlIC;') and Article XIlID to the California Constitution. According to the ''Title and
Summary" of Proposition 218 prepared bi the California Attorney General, the Proposition 218 limits,
"the authority of local governments to impose taxes and property-related assessments, fees and charges."
Generally, the provisions of Proposition 218 have not yet been interpreted. by the courts, although a
number oflawsuits have been filed requesting the courts to interpret various aspects of Proposition 218.
Among other things, Section 3 of Article XIlIC 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 Improvement Area A of the initiative power referred to in Article XIlIC to reduce or
terminate the Special Tax is subject to the same restrictions as are applicable to Improvement Area A,
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 Improvement Area A 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 ~oters 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).
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31
AGENDA ITEM NO. "3.1
one!; \ ~\ OF ~,q
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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.
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. It is possible that the Bonds will be
selected for audit by the IRS. It is also possible that the market value ofthe 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. .
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AGENDA ITEM NO. . ~ 1
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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 Tax Rates. No allowance was made for delinquencies.
The projection assumes build out at the following unit mix. .
TABLE NO. I
COMMUNITY FACILITIES DISTRICT NO. 2005-2
(ALBERHILL RANCH)
IMPROVEMENT AREA A
RATES AND LAND USE ASSUMPTIONS
. FISCAL YEAR 2006/07
\
House Square No. of Units Assigned Tax Total Special
Footage Tax
Less than 1,850 22 . $2,753 $60,566
1,851 - 2,050 55 $2,896 $159,280
2,051 - 2,550 82 $3,220 $264,040
2,551 ~ 3,150 215 . $3,373 $725,195
3,151 - 3650 34 $4,280 $145,520
Greater than 3,650 34 $4,566 $155.244
442 $1,509,845
Until such time as the receipt of Special Tl!"es from the levy of the assigned tax rate is sufficient to pay
debt service on Bonds, the Rate and Apportioiunent for the Special Tax Levy 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
ACENDA ITEM N02.\
. PACE \ ~" OF ~ 1-0
Fiscal
Year
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
TABLE NO.2
COMMUNITY FACILITIES DISTRICT NO. 2005-2
(ALBERHlLL RANCH) SPECIAL TAX BONDS
(IMPROVEMENT AREA A) 2005 SERIES A
DEBT SERVICE COVERAGE
Special Taxes
Assumed
Assit;med Rate
$1,509,845
1,540,042
1,570,843
1,602,260
1,634,305
1,666,991
1,700,331
1,734,337
1,769,024
1,804,405
1,840,493
1,877,302
1,914,849
1,953,146
1,992,208
2,032,053
2,072,694
2,114,148
2,156,430
2,199,559
. 2,243,550
2,288,421
2,334,190
2,380,873.
2,428,491
2,477,061 .
2,526,602
2,577,134
2,628,677
* Preliminary, subject to change.
Administrative
Exnense
($50,000)
(51,000)
(52,020)
(53,060)
(54,122)
(55,204)
(56,308)
(57,434)
(58,583)
(59,755)
(60,950)
(62,169)
(63,412)
(64,680)
. (65,974)
(67,293)
(68,639)
(70,012)
(71,412)
(72,841)
(74,297)
(75,783)
(77,299)
(78,845)
(80,422)
(82,030)
(83,671)
(85,344)
(87,051)
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Coverage
Ratio'
Net Special
Taxes ' Debt Service'"
$1,459,845
1,489,042
1,518,823
1,549,199
1,580,183
1,611,787
1,644,023
1,676,903
1,710,441
1,744,650
1,779,543
1,815,134
1,851,436
1,888,465
1,926,234
1,964,759
2,004,054
2,044,135
2,085,018
2,126,719
2,169,253
2,212,638
2,256,891
2,302,029
2,348,069
2,395,030
2,442,931
2,491,790
2,541,625
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AGENDA ITEM NO. >1
PAGE~OF rl-..:t.O
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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 CounciVManager 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. Lake Elsinore' 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
Term Expires
November, 2008
November, 2008
November, 2008
November, 2006
, November, 2006
Current City Administrative Staff include:
, Robert Brady, City Manager
Matt N. Pressey, Director of Administrative Services
Frederick Ray, Deputy 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 NO. ~ (
PACE \9.S OF ~O
IMPROVEMENT AREA A
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The information set forth herein regarding ownership of real property in Impro,:ement Area Ai the
Developer and any proposed development of property in Improvement Area A 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 Improvement Area A. As development of property in Improvement .
Area A has not been completed, no assurance can be given that it will occur, that it will ~ccur 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 Improvement Area A 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
Improvement Area A.
Boundaries of the District
The boundaries of the District coincide with the development generally known as AlberhillRanch. The
District is located in the northern portion of the City, I 1/2 miles east of the Interstate 15 freeway and
south of Lake Street
The boundaries of the District are described on the reduced scale map entitled "Boundary Map of
Community Facilities District No. 2005-2 (Alberhill Ranch)." A full scale map is on file with the Clerk
of the City of Lake Elsinore and was recorded with the County Recorder, County of Riverside.
Facilities to be Financed by the District
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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, as well as the funding of facilities
included in the City and Elsinore Valley Municipal Water District fee programs. The following table
summarizes authorized District facilities which are to be designed, acquired or constructed from proceeds
of the Bonds: .
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AGENDA ITEM NO. '> I
PAGE\~~ OFa.'\O
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"
"
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,I
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10
TABLE NO.3
CITY OF LAKE ELSINORE
COMMUNITY FACILITIES DISTRICT 2005-2 (ALBERIIILL RANCH)
ELIGIBLE FACILITIES COSTS .
(Estimated Costs)
Facilities Cost Estimate
.
Improvements
,
Water Tanks, Booster Stations, Pipeline Facilities, and S 14,242,496
Sewer Lift Station Improvements .
Street Improvements Lake St., Nichols Rd., Alberhill .
Ranch Rd., Mountain Ave., and Terra Cotta Ave. S 48,261,576
(including but not limited to, appurtenant se",:er, water,
drainage, streetscape, and traffic signals) .
.
Community Park Land Acquisition S 10,000,000
Public Park I Recreational Improvements S 1,900,000
City of Lake Elsinore Impact Fees
Library Fee S 235,500
Traffic Impact Fee S . 1,872,006
Fire Mitigation Fee S 235,500 .
DAG Fee S 1,570,000
.
Drainage Fee S 2,451,297
. . .
Total Lake Elsinore Impact Fees . S 6,364,303
EVMWD Fees
Water Fees S 8,523,530
-
Sewer Fees S 7,465,350
Total EVMWD Fees S 15,988,880
Total Estimated Cost. S 96,757,255
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ACENDA ITEM NO. ~ I
PAGEJiJ.:OF ~ ()
The City has and the Developer have entered into Joint Community Facilities Agreements with the
Elsinore Valley Municipal Water District and the California Department of Transportation with respect to
the portion of the facilities to be owned by the respective agencies.
To the extent the proceeds of the Bonds are insufficient to fund all of the eligible. costs for all of the
authorized facilities, such costs will be the responsibility of the Developer.
The Developer
The developer of Alberhill Ranch is Castle & Cooke Alberhill Ranch, LLC, a California limited liability
company (the "Developer"). The Developer was formed in 2004 to own and develop Alberhill Ranch,
and is a wholly owned subsidiary of Castle & Cooke, Inc., a Hawaii corporation ("Castle"). Castle was
formed on October 10, 1995, to be the successor to the real estate, commercial real estate, and resort
business of Dole Food Company, Inc., primarily in the States of Hawaii, California, and Arizona, but also
in other states in the United States. Castle has active residential developments in Bakersfield, California
and in Copperopolis located in Calaveras County, California (Saddle Creek).
In Bakersfield, Castle primarily subdivides and develops its land holdings into developable parcels and
planned residential communities designed to meet demand for housing in each market segment. This
includes home sites for single family homes ranging from entry level to luxury, including pre-designed. as
well as custom plans. Castle also engages in home building in its Bakersfield developments. These
building programs consist of single-family homes in the active adult market as well as first time and
move-up buyer markets. Castle projects in Bakersfield include, but are not limited to, the following:
Seven Oaks, a master-planned community on approximately 1,600 acres surrounded. by the Seven Oaks
Country Club and golf course, which was developed by Castle and eventually will be contributed to a
non-profit mutual benefit corporation;
Silver Creek, a master-planned community encompassing approximately 600 acres;
Brimhall, a residential community comprising of approximately 1400 acres;
Southern Oaks, a single-family residential community on approximately 67 acres;
In addition to residential developments, Castle also owns, develops, and builds on industrial, office, and
retail sites. In Corona, California, Castle owns a powerllifestyle shopping center development known as
The Crossings at Corona, containing over 900,000 square feet of commercial-retail and entertainment
uses with anchored tenants such as Kohl's, Marshalls, Sportmart, Bed Bath and Beyond, Cost Plus, Petco,
Famous Footwear, Target, Best Buy, Edwards Cinema, and Barnes & Noble BOQkstore.
In Bakersfield, Castle owns three industrial parks comprising of approximately 330 acres (Stockdale
Industrial Park, Gosford Industrial Park, and Gateway Industrial Park), two industrial warehouses
comprising approximately 2SS,SOS square feet, two office buildings containing approximately 290,000
square feet, a 33 acre shopping center (The Marketplace) containing approximately 300,000 square feet, a
50% interest in a general partnership that owns a 173,000 square foot shopping center, and a 21.6% in a
limited partnership that owns two industrial buildings containing approximately 220,000 square feet.
Castle also owns 49 acres of commercial/retail, 10 acres of commercial/office larid and 42 acres of
undeveloped highway commercial land at Highway 99 and Bear Mountain Blvd in Bakersfield. These
properties are currently being marketed for sale. .
Castle's development in Calaveras County (Saddle Creek) was purchased in April 1999, and includes
S66 acres of residential lands and partnership interest in an IS-hole Morrish & Assocs. designed golf
course that opened in 1996. Castle develops and sells home sites and homes ranging from large
bungalows to low-luxury. Castle also owns two IS-hole Jack Nicklaus designed golf courses in San Jose,
California.
38
u
u
u
AGENDA ITEM NO.. 3\
PAGE \ ~~ OF d-.W
(\
(\
(\
Further information regarding Castle'is available from its internet website www.castlecooke.com. .
This Internet address is included for reference only and the information on the Internet site is not a
part of this Official Statement or incorporated by reference into this Official Statement. No
representation is made in this Official Statement as to the accuracy or adequacy of the information
contained on the Internet site.
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. ]n 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
The development within Improvement Area A is planned for four development phases (Phase I, 2, 3 & 5)
and is expected to have 442 single family residences in four different communities as follows:
1. Saltillo is expected to have 133 single family homes (30.09% of the total Improvement Area
A units) that are currently priced from $393,000 to $495,000 (an average of $449,750). The
homes are expected to range in size between 2,010 to 3,]20 square feet (an average of 2,615
square feet). .
2. Capella is expected to have 137 single family homes (31.00% of the total Improvement Area
A units) that are estimated to be priced from $465,000 to $555,000 (an average of $515,500).
The homes are expected to range in size between 2,531 to 3,838 square feet (an average of
3,237 square feet).
3. Ashbury is expected to have 106 single family homes (23.98% of the total Improvement
Area A units) that are currently priced from $465,000 to $520,000 (an average of $491,667).
The homes are expected to range in size between 2,775 to 3,582 square feet (an average of
3,160 square feet).
4. Somerset is expected to have 66 single family homes (14.93% of the total Improvement Area
A units) that are currently priced from $375,000 to $415,000 (an average of $395,000). The
homes are expected to range in size between ],600 to 2,200 square feet (an average of 1,900 .
square feet).
39
3>\
AGENDA ITEM NO.
. PACE \ ~OCOF ~\O
TABLE NO.4
CITY OF LAKE ELSINORE
COMMUNITY FACILITIES DISTRICT 2005-2 (ALBERHILL RANCH)
IMPROVEMENT AREA A
DESCRIPTION OF DEVELOPMENT
u
Saltillo Capella Ashbury Somerset
. .
.
Applicable . ..
Development 1,2,3 2,3,5 3&5 5
Phase
Number of 133 137 106 66
Homes
..
Min. Lot .
Sizes 5,200 Sq. Ft. 7,OOOSq. Ft. 7,000 Sq. Ft. 4,000 Sq. Ft.
.
Number of 4 4 3 4
Models
.
Size Range 2,010 to 3,120 Sq. 2,531 . to 3,838 Sq. 2,775 to 3,582 Sq. 1,600 to 2,200 Sq.
Ft. Ft.' Ft. Ft.
Base Price $393,000 to $465,000 to $465,000 to $375,000 to
Range $495,000 $555,000 $520,000 $415,000
.
Homes Sold
64 24 0 0
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Source: Castle & Cook Aberhill Ranch
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40
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AGENDA ITEM NO. "S \
PAGE~OF ~.:'IO
(\
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There is no assurance that amounts necessary to finance the Developer's remaining site development and
home construction costs will be available from Castle 8< Cooke or any other source, when needed.
Neither Castle & Cooke nor any of its partners or affiliates, is under any legal obligation of any kind to
expend funds for the development of the property.
Any internal funding by Castle & Cooke or its partners or affiliates, or borrowing under any l~an
arrangement, to finance its development and home construction costs is entirely voluntary.
If and to the extent that home sales revenue, internal funding and Bondproceeds are inadequate to pay the
costs to complete the planned development by the Developer and other financing by the Developer is not
put into place,there could be a shortfall in the funds required to complete the proposed development by
the Developer in Improvement Area A and portions of the project may not be developed.
History of Property Tax Payment; Loan Defaults; Bankruptcy.
An officer or representative executing a certificate on behalf of each 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 materially adversely affect the development by such
property owner of its property in the District.
. Such property owner is solvent and no proceedings are pending ~r, 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 a' reorganization or
readjustment of its debts.
. There is no litigation or administrative proceeding of any nature in which such property
owner has been served or to its actual knowledge, is pending or threatened against such
property owner, which if successful; would materially adversely affect 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 .
43
AGENDA ITEM NO. S \
PACE~OF a30
DEBT STRUCTURE
u
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.
Direct and Overlapping Debt
Set forth below is a direct and overlapping debt report (the "Debt Report") prepared by National Tax
Data, Inc. as of , 2005. The Debt Report is included for general information purposes only. The
Debt Report generally includes long-term obligations sold in the public credit markets by public agencies
. whose boundaries overlap the boundaries of the District in whole or in part. Such long-term obligations
are not payable from District Special Taxes nor are they necessarily obligations secured by property
within the District. In many cases, long-term obligations issued by a public agency are payable only from
the general fund or other revenues of such public agency.
Presently, the property within the District is subject to $ of direct and overlapping tax and
assessment debt and overlapping general fund obligation debt, a figure which excludes the Bonds (see
table below). To repay the direct and overlapping tax and assessment debt and overlapping lease
obligation debt, the property owners of the land within the District must pay the annual Special Tax and
the general property tax levy.
In addition, other public agencies whose boundaries overlap those of the District could, without the
consent of the District, and in certain cases without the consent of the owners. of the land within the
District, impose .additional taxes or assessment liens on the real property within the District in order to
finance public improvements or services to be located or furnished inside of or outside of the District.
The lien created on the real property within the District through the levy of such additional taxes or
assessments may be on a parity with the lien of the Special Taxes. The imposition of additional liens on a
parity with the Special Taxes may reduce the ability or willingness of the landowners to pay the Special
Tax and increases the possibility that foreclosure proceeds, if any, will not be adequate to pay delinquent
SpeCial Taxes
u
u
44
3\ .
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AGENDA ITEM NO. :;l:~-
PAGEJ9.ULOF 0
(\
Scheduled Debt Service on the Bonds
The following is the scheduled Debt Service on the Bonds.
("'1
Interest Pavment Date
March I, 2006
September 1, 2006
March I, 2007
September I, 2007
March I, 2008
September 1, 2008
March I, 2009
September I, 2009
MaTch I, 2010
September I, 2010 .
March I, 2011
September I, 2011
March I, 2012
September I, 2012
March I, 2013
September I, 2013
Match I, 2014
September 1, 2014
March 1, 2015
September 1, 2015
March I, 2016
September I, 2016
March I, 2017
September 1, 2017
March I, 2018
September 1, 2018
March I, 2019
September 1, 2019
March 1, 2020
September I, 2020
March I, 2021
September I, 2021
March 1. 2022
September I, 2022
March I, 2023
September 1, 2023
March I, 2024
September I, 2024
March 1. 2025
September 1, 2025
March I, 2026
September I, 2026
March I, 2027
September I, 2027
March I, 2028
September I, 2028
March 1. 2029
September 1, 2029
March 1, 2030
September I, 2030
March I, 2031
September I, 2031
March 1, 2032
September I, 2032
March I, 2033
September I, 2033
March I, 2034
September I, 2034
March]. 2035
September 1. 2035
Prineinal
Counon
n
47
Interest
Annual Debt Service
"5.\
AGENDA ITEM NO. ~d
PAGEJ.91 OF ~
SUMMARY OF THE FISCAL AGENT AGREEMENT
u
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:
(I) 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 iil 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 CFO 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 U.
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 lllJd in the amounts set forth inthe 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
(I) 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 CFO and may be
used by the CFO 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 I and September I, the Fiscal Agent shall make the following
transfers from the Special Tax Fund first to the Interest Account and then to the Principal Account;
u
48
AGENDA ITEM NO. s I -
. PAOEBK-OF ~~O
(1
(\
("\
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 ofthe 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: .
(I) To the Interest Account, an amount such that the balance in the Interest Account five Business
Days prio~ to each Interest Payment Date shall be equal to the installment o{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 I of each year, commencing September 1,2007 shall at least equal the
principal 'payment due on the Bonds maturing on such September I 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 Specia.1 Tax Fund.
. . . .
(I) On each September I on which a SiJ.lking 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 I
equal to the Sinking Fund Payment oue on any Outstanding Bonds on such September I; 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 Bpecial 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
3\
AGEN~::aOf :~:~O~
interest payable upon the purchase of Bonds may be paid from the amount reserved in the Interest U
Account of the Sp~cial Tax Fund for the payment of interest on the next folloWing Interest Payment Date.
Reserve Account of the Special Tax Fund. There shall be maint;nnedin 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: .
(I) 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
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. U
(3) In connection wiIh any redemption of the Bonds, or a partial defeasance of the Bonds, amo~nts
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 Ihe' Reserve
Requirement. To the extent that the Reserve Account is at the Reserve Requirement as of Ihe 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 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.
Administrative Expense Account of the Special Tax Fund. The Fiscal Agent shaH 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 Ihe 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 shaH 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 shiiH be transferred by the Fiscal
U
50
~\
ACENDA ITEM NO. .
PACE.JJl(LOF ~ "\0
(\
(\
(\
Agent at the written reques(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 funM 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:
(I) 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 ihe Bonds shall riot 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 Agieement to the final maturity of the
Bonds so long as such amounts may be withdrawn at any time, without penalty, for application in
51
AGENDA ITEM NO. "$ \
PAOE..anLOF..:a- :- 0
accordance with the Fiscal Agent Agreement; and provided that no such Authorized Investment of U
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 thereoL .
The Fisc~l Agent shall sell at the. best price obtainable, or present for'rede~ption, 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 anyone 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 orits 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' U
and other amounts deposited to the Special Tax Fund:
(I) Punctual Pavment: 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 CFDshall 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 payor 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 Taxin an amount
U
52
ACENDA ITEM NO. S I
PAGEplJ)J,..OF d~O
n
n
(\
sufficient, together with other amounts on deposit in the Special Tax Fund and the Surplus Fund and
available Tor such purpose, to pay (I) 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 ReserveRequirement.
'(3) Commence Foreclosure Proceedings. TheCFD covenants for the benefit of the Owners of the
Bonds that it will determine or cause to be determined, no later than March'l and August I of each year;
whether or not any owner of the property within Improvement Area A 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 Cdetermination date) or September I (with respectto the August
I 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 Improvement Area A 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 Improvement Area A is delinquent in excess of ten thousanddoll~ ($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 Tax,es. '
, "
(d) The CFD may forgive all or any portion of the Special Taxes levied or to be levied on any
parcel in Improvement Area A 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) Pavment 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
53
AGENDA ITEM NO. ~ I
PAOE~OF a:?:.Q
transactions relating to the levy of the Special Tax and the deposits to the Special Tax Fund. Such books U
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 shan not use, and shall not permit the use of; and
shan not omit to use Gross Proceeds or any other amoUJits (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.ofthe owner thereoffor federal income tax purposes.
(7) Reduction of Maximum Soecial 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 Improvement Area
A as of the July I preceding the reduction, the maximum amount of the Special Tax which may be levied
on then existing DevelopedProperty (as defined in the Rate and Method of Apportionment of Special
Taxes then in effect in Improvement Area A) 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 an Bonds to remain Outstanding, after the reduction is approved; and (ii) the CFD finds that any U
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 shan 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 Reoorts to CDIAC. Not later than October 30 of each year, commencing October 30,
2005 and until the October 30 following the final maturity of the Bonds, the CFD shan 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 Reqniring 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:
(I) 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
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54
AGENDA ITEM NO. -g I _
PJa~OF ~:t,.O
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additional resolution or order, provided 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 the Fiscal Agent Agreement, other covenants, agreements, limitations and restrictions to be
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. Anyone 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 su.ch 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:
(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 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
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55
AGENDA ITEM NO. S I . ,
PAGE :J~5 OF "d-3o
(3) By a suit in equity to require the CFO and its members, officers and employees to account as U
the fiscal agent of an express trust.
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 CFO, 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 amouilts 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 CFO and the Owners shall be restored to their former positions, rights ~d
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
~~~ U
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 CFO shall payor 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 CFO 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 CFO'sgeneral 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 deeined to have been paid if such Bond is paid in anyone 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; ,
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56
AGENDA ITEM NO. 3l i
PAOE~OF ~O
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(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 transferred to the
Administrative Expense Account) and availabkfor 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 '
(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
as will be sufficient, together with the interest )0' 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 payor 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 cerlified 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 Fiscill Agent 'shall, at the written
direction of the CFD, mail, first claSs, postage prepaid, a notice to the Boridowners, whose Bonds have
been defeased, in the form directed by the CFD, stating that the defeasance has occurred.
57
AGENDA ITEM NO. ~ I , :
PAGE ~O 7 OF 'd.10
FINANCIAL INFORMATION
City Accounting Records and Financial Statements
u
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 Improvement
Area A needed to pay' debt service on each series of Bonds issued by the District on behalf of
Improvement Area A and Administrative Expenses of the District related to Improvement Area A (the
"Special Tax Requirement"). The District is expected to incur Administrative Expenses within
Improvement Area A 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
Improvement Area A on which the Special Taxes are to be levied, taking into accolint any parcel splits
during the preceding and then current Fiscal Year. The District is required by resolution to provide for the U
levy of the Special. Taxes within Improvement Area A 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 leviea on each such
parcel, is filed by the District with the County Auditor on or before the tenth (\ Oth) 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 d"eposited 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 herein). Because the Special Taxes have been
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58
AGENDA ITEM NO. ~ \
PACE d-OR OF d-.~O
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authorized by a two-thirds (2/3) vote of the qualified electorate'within the District, the Special Taxes are a
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 contahied in the FiscalAgent 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 Mello-Roos
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 consiqered 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 Improvement Area A 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 and which Zone it is located in.
Assigned Special Tax Rates
The Tables below show the Assigned Special Tax rates for fiscal year 2006/07 that are to be levied against
Developed PropertY withiri Improvement Area A. The Maximum Special Taxes for 'developed propertY
cannot exceed the rates shown for fiscal year 2006/07, 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 Improvement Area A, 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 Improvement Area A 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
59
AGENDA ITEM NO. ~ (
PAOE~OF d-.1.,o
circumstances will the Special Tax on an AsseSsor's Parcel of Developed Property be increased above the U
greater ofthe Backup Tax or the applicable Assigned Special Tax. . .
The Assigned 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 Improvement Area A.
60
U
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AGENDA ITEM NO. ~
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AGENDA ITEM NO. ~,
PAGE~OF ~1.Q
Delinquencies and Foreclosure Actions U
No parcels within Improvement Area A have experienced any delinquencies.
The District has covenanted to initiate foreclosure action in the Superior Court against parcels with
delinquent Special Taxes as provided iri 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 remClVes the delinquent Special Taxes from the County Tax Roll, as required bylaw. Foreclosure
counsel then initiates a request for a title search to identify the current legal owner of a deli'1quent 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 lis
pendens against the property at the officeofth~ 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 judgIl)ent. .
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 U
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. .
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62
AGENDA IlEM NO. "?\
PACE~OF ~O
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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
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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. wilLrender 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
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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 'ofthe 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 ofthe 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
private activity bonds" within the meaning of section 57(a)(5) of the Code and, therefore, the interest. on
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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)).
The excess, if any, of the slated 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 (inc]uding sale, redemption or payment on maturity) of such Bond. The
Code includes certain provisions relating to the accrual of original !ssue 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 of a maturity having original issue discount should consulrhis
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 ~ni:ler 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
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 83] of the Code, section 832(b)(5)(B)(i) reduces the deduction for
loss reserves by ] 5 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 ofthe 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
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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 aguarantee 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'
District described above. No'ruling has'been sought from the Internal Revenue Service (the '~Service")
witli 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.
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CONCLUDING INFORMATION
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No Rating on the Bonds
The District has not made, and does not conteniplate 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 .assurancescan be m.ade 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 Tax Spread
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.
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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 uAPPENDIX 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-
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2000. Copies of these documents may be obtained after delivery ofthe 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:
City Manager ofthe City,
Acting on behalf of Community Facilities
District No. 2005-2 (Alberhill Ranch)
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APPENDIX A
DEFINITIONS OF CERTAIN TERMS USED IN THE FISCAL
AGENT AGREEMENT
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Unless otherwise defined in this Official Statement, the following terms have the following meanings.
"Act" means the Mello-RoosCommunity 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 oth~r 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 Jaws of the State for the moneys proposed to be invested therein:
(I) 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 U
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 ifthey have been stripped by the agency itsell):
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 HousinQ. 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)
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(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 arating by Standard & Poor's of AAAm-a, AAAm or
AA'm, and, if rated by Mlicidy's, rated Aaa; Aal orAa2 (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 ~orporation, 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 "A a", by the, Rating Agency (without regard to gradations of plus or minus
wilbin such category), and
(b) any such investment agreement is collateralized wilb 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 lbe 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-I" or better by
Standard & Poor's.
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(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.
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(10) Federal funds or bankers acceptances with a maximum, term o(one year of any bank which has an
Unsecured, uninsured or unguaranteed obligation rating of "Prime - I" or "A3" or b,tter 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 FDlC, > 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 Feder8l 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 (Hi) 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.P.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% .'
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(12) Local Agency Investment Fund ("LAIF") of the State of California.
(13) Any other investment whic'h 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" mearis an attorney at law or a firm of attorneys selected by the CFD of nationally
recognized standing in ma~ers 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 register~d.
"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.
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"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
iocated, 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 ofthe CFD:
"CFD" means the City of Lake Elsinore Community Facilities District No. 2005-2 (Alberhill Ranch)
established pursuant to the Act and the Resolution of Formation:
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"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 ofthe 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, Notesind 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. . ' '
U.S. Exnort-Imnort Bank - direct obligations or fully guaranteed
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. Denartment of Housing and Urban Develonment (HUm - 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 11 hereof.
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"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 U
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 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 I 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:
(I) is, in fact, independent and not under ,the domination ofthe CFD;
(2) 'does not have any substantial interest, direct or indirect, inthe 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 I, commencing March I, 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 Aunual Debt Service" means the maximiun sum obtained for any Bond Year prior to the final
maturity of the Bonds by adding the following for each Bond Year:
(I) 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. '
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"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:
(\) 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
Fisc'al 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 natura) persons, firms, corporations, partnerships, associations, trusts, public bodies and
other entities.
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"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 Improvement Area A, 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 (I) 10% of
the original proceeds of the Bonds, less accrued interest, if any, less original issue discount, if any, plus
original issue premium, if any, or (2) Maximum Annual Debt Service, or (3) 125% of the average Annual
Debt Service of the Outstanding Bonds.
"Resolution of Formation" means a Resolution adopted by the Council on
which the Council formed the CFD.
, 2005 pursuant to
"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 Improvement Area A
in accordance with the Resolution of Formation, the Act and the voter approval obtained at the ,
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 relevantto compliance with the
Code.
"Term Bonds" means the Bonds maturing on September 1,2025, September I, 2030 and September I,
2035.
"Underwriter" means the institution or institutions, if any, with whom the CFD enters into a purchase
contract for the sale of the Bonds.
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"Written Request of the CFD" means a request in writing executed by the Mayor, City Manager, City U
Treasurer, or written designee, on behalf of the CFD. .
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APPENDIX B
MARKET ABSORPTION STUDY
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APPENDIX C
APPRAISAL REPORT
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APPENDIX D ,
RATE AND METHOD OF APPORTIONMENT
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FORMS OF CONTINUING DISCLOSURE AGREEMENTS
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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. 2005-2 (Alberhill Ranch))
Special Tax Bonds (improvement Area A), 2005 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. 2005-2 (Alberhill Ranch) Special Tax Bonds (improvement Area A), 2005 Series A (the "Bonds"),
pursuant to the provisions of Mello-Roos Community Facilities Act of 1982, as amended, being Chapter
2.5, Part I, Division 2, Title 5, or the Government Code of the State of California (the "Act';) and
pursuant to a'Fiscal Agent Agreement, dated as of November I, 2005 (the "Fiscal Agent Agreement"), by
and between the City of Lake Elsinore Community Facilities District No. 2005-2 (Alberhill Ranch) (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:
I. 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.
3. 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
interest thereon to be and remain excluded from the gross income of the owners thereof
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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.
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]n our opinion, under existing law, interest on the Bonds is exempt from personal
income taxation ofthe State of California and, assuming compliance with the
aforementioned covenant, interest on the Bonds is excluded pursuant to section I 03(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)).
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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 judicia]
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. .
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Respectfully submitted,
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