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HomeMy WebLinkAbout07/12/2005 CC Reports CITY OF LAKE ELSINORE CITY COUNCIL AGENDA ROBERT E. "BOB" MAGEE, MAYOR ROBERT L. SCHIFFNER, MAYOR PRO TEM THOMAS BUCKLEY, COUNCILMAN DARYL HICKMAN, COUNCILMAN GENIE KELLEY, COUNCILWOMAN ROBERTA. BRADY, CITY MANAGER WWW.LAKE-ELSINORE.ORG (951) 674-3124. PHONE (951) 674-2392 FAX LAKE ELSINORE CULTURAL CENTER 183 NORTH MAIN STREET LAKE ELSINORE, CA92530 *********************************************************.*** TUESDAY, JULY 12, 2005 ~7:00 P.M. If you are attending this City Council Meeting please park in the Parking Lot across the street from the Cultural Center. This will assist us in limiting the impact of meetings on the Downtown Business District. Thankyouforyourcooperadon! CALL TO ORDER ROLL CALL CLOSED SESSION a. CONFERENCE WITH LEGAL COUNSEL ~ EXISTING LITIGATION - (Subdivision (I) ofGov't Code ~ 54956.9) O'Doherty v. City of Lake Elsinore (riverside Superior Court Case No RIC 431834). PLEDGE OF ALLEGIANCE INVOCATION ~ MOMENT OF SILENT PRAYER PRESENT A nONS/CEREMONIALS A. Proclamation - Parks & Recreation Month B. Presentation - Certificates of Recognition C. Presentation - Boat Parade Award of trophies . D. Presentation - Sister City - Commune Taiarapu-Quest, Tahiti Page Two-City Council Agenda - July 12,2005 E. Presentation - Business of the Quarter F. Chamber of Commerce Update PUBLIC COMMENTS- NON-AGENDIZED ITEMS -1 MINUTE (Please read & complete a Speaker's Form at the Podium, prior to the Start of the City Council Meeting) PUBLIC COMMENTS - AGENDIZED ITEMS - 3 MINUTES (Please read & complete a Speaker's Form at the Podium, prior to the Start of the City Council Meeting. The Mayor will call on you to speak, when your item is called.) .. CONSENT CALENDAR (All matters on the Consent Calendar are approved on one motion, unless a Councilmember or any member of the public requests separate action on a specific item.) I. Minutes a. Joint City Council/Redevelopment Agency Study Session - June 14,2005. b. Regular City Council Meeting - May 24, 2005. c. Regular City Council Meeting - June 14,2005. RECOMMENDA nON: Approve. 2.. Warrant List - June 30, 2005. RECOMMENDA nON: Ratify. 3. Investment Report. a. April 2005. b. May 2005. RECOMMENDA nON: Receive & File. Page Three - City Council Agenda - July 12, 2005 4. Poe Street drainage and street improvements. RECOMMENDATION: Direct staff to prepare construction contract documents and advertise Poe Street drainage improvements for construction. Authorize $80,600 from Public Improvements and In-Lieu Fees. 5. Disposal of surplus electronics as scrap. RECOMMENDATION: Approve disposal of surplus equipment to be scrapped, 6. Resolution of Intention to establish Community Facilities District no. 2005-2 (Alberhill Ranch) and Resolution ofIntention to incur Bonded Indebtedness. RECOMMENDATION: Adopt Resolution of Intentions 2005- 62. Adopt Resolution 2005-63 to incur bonded indebtedness. Schedule Public Hearing on the District Formation for August 23, 2005. 7. Resolution of Intention to establish Community Facilities District No. 2005-4 (Lakeview Villas) and Resolution ofIntention to incur bonded indebtedness. RECOMMENDATION: Adopt Resolution of Intentions 2005- 64. Adopt Resolution 2005-65 to incur bonded indebtedness. Page FQur -CityCQunciJ Agenda - July 12, 2005 Schedule Public Hearing on the District Formation for August 23, 2005. 8. Resolution ofIntentionto annex property into Community Facilities District No. 2003-1 (Law Enforcement, Fire and Paramedic Services) and to authorize the levy of a Special Tax within Annexation Area No. 14 (Lakeview Villas). RECOMMENDATION: 9. Investment Plan. RECOMMENDATION: Adopt Resolution ofIntention 2005- 66. Schedule a Public Hearing on Annexation Area No. 14 for August 23,2005. Approve Union Bank of Cali fomi a custodial services and als() Bank of New York if Bank of New York can lower the fee to $2,500. Approve the list of certified broker dealers. Approve the proposed investment plan; 10. Increase of Traffic Infrastructure Fee (TIF) for development projects within the City of Lake Elsinore. RECOMMENDATION: PUBLIC HEARING Adopt Resolution No. 20Ci5-67. 21. Zone Change No. 2005-05 and Annexation No. 72. Page Five - City Council Agenda - July 12,2005 RECOMMENDATION: Adopt Ordinance No. 1152, upon first reading, approving Zone Change No. 2005-05. Adopt Resolution No. 2005-68, which consents to the corinnencement of proceeding to annex th~ 1,374 acres enumerated in Annexation No. n. 22. A Resolution to approve placing delinquent refuse bill on FY 2004- 2005 Tax Roll. RECOMMENDATION: BUSINESS ITEMS Adopt Resolution No. 2005-69, which assures the permanent collection of all 120-day delinquent residential accounts as oDuly 1, 2005 through the property tax rolls. Direct the City Clerk to file with the Riverside County Auditor a certified copy of Resolution No. 2005-70, . along with the 120-days past due accounts report. 31. Second Reading - Ordinance No. 1151 - Approving Amendment No. 3 to the Canyon Creek Specific Plan No. 85-1. RECOMMENDATION: Adopt Ordinance No. 115.1, upon second reading by title only. 32. Industrial Design review No. I 2004-04. Page Six - City Council Agenda - July 12,2005 RECOMMENDATION: Adopt Resolution No. 20@5-71. Findings of Consistency with Section 6.1.2 of the MSHCP. Approve Industrial Design Review No. 12004-04. 33. Washington, D.C. Lobbying Services Request For Proposals. RECOMMENDATION: Authorize City Manager or his designee to publish the RFP. Discuss the Council's preference ~or handling the RFP evaluation and selection process. 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II, I > ~l i!::i.'; i.:,', "/i" · ",', ,',','. ,.'., ", ., \ a i '!Iii i! ii, i I ~iil~i;ii i;':: Ii i ')'11: iii'f ~ i! il!11 !~~ i ii ~i ii;i: iii! ~:":"'" AOI:NDA ITEM NO. PAGE / OF I , -. -. -. ACENDA ITEM NO. PACE I OF ~ ~ AGENDA iTEM NO. PAGfLLOF 3 II , It)r!c~ ':)........ - or- --3~ .".,.. ~.~._P'-' ,- , u ~ u u ("'\ ("'\ (' MINUTES. JOINT CITY COUNCILIREDEVELOPMENT AGENCY STUDY SESSION CITY OF LAKE ELSINORE 183 NORTH MAIN STREET LAKE ELSINORE, CALIFORNIA .' TUESDAY, JUNE 14,2005 ' *************************************************************.. CALL TO ORDER Mayor Magee called the Joint Study Session to order at 4:00 p.m. ROLL CALL PRESENT: COUNCILMEMBERS: HICKMAN, KELLEY, . . 'SCHIFFNER, MAGEE ABSENT: COUNCILMEMBERS: BUCKLEY (Councilman Buckley arrived at 4:08 p.m.) . Also present were: CitY Manager Brady, City Attorney Leibold, Administrative Services Director Pressey, Lake & Aquatic Resources Director Kilroy, Information/Communications Manager Dennis, Recreation/Tourism Manager Fazzio, Parks & Open Space Manager Fazzio, Building & Safety Manager Chipman, Engineering Manager Ken Seumalo, City' Engineer Moehling, Public Works Manager Payne, City Treasurer Weber, Deputy City Clerk Ray and Office Specialist ISoto. . ,. . , ~ " DISCUSSION ITEMS Mayor Magee gave an overview of the presentations; and confirmed that the awardees would be present at the 7:00 p.m. meeting. . . . .' Agenda Item NO.~ Page-LOf ~ PAGE TWO STUDY SESSION MINUTES - JUNE 14,2005 PUBLIC COMMENTS Bill Titto, 32296 Machado, questioned if any new City Policies had been implemented. . City Attorney Leibold clarified that there were continuous City Policies being implemented.. .. . CONSENT CALENDAR I. Minutes. Councilman Buckley gave reference to minor corrections to item I a. Councilman Buckley requested the )Yording be changed for a motion made on I b item no. 32, Waiver of deposit to Lake Management Fund. 2. Warrant List - May 31, 2005. Councilman Hickman requested clarificationofvarious checks issued on the warrant list. Staff clarified the items. Councilman Buckley requested clarification of check no. 81996 issued on the warrant list. Staff clarified the item. .. . 3. Approval of Final Map 31706-3. a residential subdivision bv Pardee Homes, located north ofCanvon Hills Road and eastofRailroad Canyon Road in the Cottonwood Canyon Specific Plan. No Comments. 4. Approval of Final Map 31706-4, a residential subdivision by Pardee Homes, located north of Canyon Hills Road and east of Railroad Canyon Road in the Cottonwood Canyon Specific Plan. No Comments. Agenda Item No. \ G page~ Of ==t- u u ; .. u PAGE THREE STUDY SESSION MINUTES - JUNE 14,2005 (\ ... . 5. Fee Deposit and Reimbursement Agreement with EVMWD and Castle & Cooke AlberhilI Ranch. LLC. No Comments. 6. HTE. Inc. Software upgrade: Contracts for Naviline.QRep. DMS Licensing. Training and Technical Support. . No Comments. 7. Federal Surplus Property Program. ' .1 No Comments. 8. Agreement with T.GA Develovment & Engineering. Inc.. to provide Plan Check Services to the Engineering Division. n Mayor Magee inquired who would be handling the item. City Manager Brady remarked that it would be handled by the City Engineer. 9. Approval of Final Map 30395. an Industrial Complex located west of Pasadena Street and north of Third Street.'.. No Comments. 10. Request for No Parking on Grandview Avenue and Skylark Drive. No Comments. 11. Improvement Reimbursement Agreement - Parcel Map 30187. No Comments. 12. Improvement. Reimbursement and Cooperation Agreement for Construction of "Hunco Way" Storm Drain with Home Depot U.S.A. (\ Agenda Item No. \ c:>, Page~Of~ PAGE FOUR STUDY SESSION MINUTES - JUNE 14,2005 u Councilman Buckely questioned the reimbursement process. City Manager Brady noted that they pay the fees and would be reimbursed. City Engineer Seumalo clarified if the amount should cost more than the expected fee they would also be reimbursed for any overage. 13. Request for funding of Temescal Canvon Grad Night. Councilman Hickman noted that if were to pay for Temescal Canyon High School's Grad Night, the Council should also take into consideration other City High Schools. Councilwoman Kelley commented on the issue. She indicated that no other school had come forward. Councilman Buckley questioned if this was ever done in the p~st... , ' u PUBLIC HEARINGS 21. A Resolution of the Citv Council of the City of Lake Elsinore to Vacate a , Portion OD'd Street East of Collier Avenue for the Construction ofa Water and Sewer Pump Station. No Comments. j; BUSINESS ITEMS 31. 2005 Julv 4th Celebration. No Comments. Agenda Item No. \0 Page~Of--=r. u P AGE FIVE STUDY SESSION MINUTES -JUNE 14; 2005 ('. 32. Resolution ofIntention to establish Community Facilities District No. 2005-5 (Villages at Wasson Canyon). Administrative Services Director Pressey requested a continuance for this item until the next council meeting. ... . 33. Potential Site for Bovs and Girls Club. Councilwoman Kelley requested that land proposed for this item be earmarked. Councilman Buckley notedthatthe neighboring nursery sold for $14 million. He suggested an appraisal be done on the property for the proposed item. . ' , Mayor Magee noted that Council hild'snown support for this idea. n Councilwoman Kelley indicated that she was merely requesting that the land be set aside since there needed to be a potential location set aside. Mayor Magee suggested continuing the item. 34. Personnel Recruiting and Reonranization. Councilman Buckley commented thatthe City Clerk position would be a negotiated contract with the perspective candidate. City Manager Brady gave an overview of this item. Councilman Buckley suggested removing the Part-Time Office Specialist position. City Manager Brady remarked that an increase in personnel was needed. City Treasurer Weber commented that at his place of employment, a warehouse with more than 1,000 employees,' had 5 individuals that handled Human Resources. ('. Agenda Item No. \0 PageS-Of ~ PAGE SIX STUDY SESSION MINUTES - JUNE 14,2005 u Councilman Hic:kman suggested continuing the item. Mayor Magee noted that Staff recommended a sub-committee. -, . . City Manager Brady took the opportunity to introduce City Engineer Moehling, to the Council. 35. General Fund and LLMD Operating Budget for Fiscal Year (FY) 2005-06 and Capital Improvement Proiects (CIP) Budget forFY 2005-06 through 2009-10, .'. Administrative Services Director Pressey gave an overview of the item. He noted that there had been previous Study Sessions on the item. ,He also, indicated that the budget was balanced for the Fiscal Year 2005-06. Furthermore, he indicated,an increase in public safety. ", REDEVELOPMENT AGENCY CONSENT CALENDAR u 1. Minutes. No Comments. . 2. Warrant List - May 31. 2005. No Comments. BUSINESS ITEM 3. Pre-Proposal Conference - Diamond Stadium. ., City Attorney Leibold gave an overview of this item. '. . 4. RDA Operating Budget for Fiscal Year 2005-06. Agenda Item No. \ a Pagela_ Of-=:t u PAGE SEVEN STUDY SESSION MINUTES-JUNE 14,2005 (1 Chairman Hickman noted that the RDA had assumed financial responsibility of the Lake and the Stadium. Boardmember Buckley commented on Country Club Heights Ordinances. ADJOURNMENT THE JOINT CITY COUNCILIREDEVELOPMENT AGENCY STUDY SESSION WAS ADJOURNED AT 5:27 P.M. ROBERTE. MAGEE, MAYOR CITY OF LAKE ELSINORE (\ DARYL HICKMAN, CHAIRMAN REDEVELOPMENT AGENCY Respectfully submitted, MICHELLE SOTO, OFFICE SPECIALIST I ATTEST: FREDERICK RAY, DEPUTY CITY CLERK (1 Agenda Item No. \0 Page T Of--=t- u ';, u u n n n MINUTES REGULAR CITY COUNCIL MEETING CITY OF LAKE ELSINORE 183 NORTH MAIN STREET LAKE ELSINORE, CALIFORNIA TUESDAY, MAY 24, 2005 ****************************************fr*****~******************* CALL TO ORDER The Regular City Council Meeting was called to order by Mayor Magee at 5:30 p.rn. ROLL CALL PRESENT: COUNCILMEMBERS: . BUCKLEY, HICKMAN, KELLEY, SCHIFFNER, MAGEE ABSENT: . COUNCILMEMBERS: . NONE Also present were: City Manager Brady, City Attorney Leibold, Administrative Services Director Pressey, Community Services Director Sapp, Lake & Aquatic Resources Director Kilroy, Engineering Manager Seumalo, Information/Communications Manager Dennis, Parks & Open Space Manager Fazzio, Planning Manager Preisendanz, Public Works Manager Payne, Recreation & Tourism Manager Fazzio, City Treasurer Weber and; City ClerklHuman Resources Director Kasad. . CLOSED SESSION a. CONFERENCE WITH LEGALCOUNSEL-ANTICIPATED LITIGATION Significant exposure to litigation pursuant to subdivision (b) ofGov't Code S 54956.9 (I potential case). City Attorney Leibold announced the Closed Session as listed above;. Agenda Item NO.~ pagel-Of 3 \ Page Two - City Council Minutes - May 24, 2005 u THE REGULAR CITY COUNCIL MEETING WAS RECESSED TO CLOSED SESSION AT 5:31 P.M. The Closed Session discussion was completed at 6:45 p.m. RECONVENE IN PUBLIC SESSION (7:02 P.M.1 PLEDGE OF ALLEGIANCE The Pledge of Allegiance was led by Dennis Sickle. INVOCATION - MOMENT OF SILENT PRAYER Mayor Magee led the meeting in moment of silent prayer. J ROLL CALL PRESENT: COUNCILMEMBERS: HICKMAN; KELLEY, SCHIFFNER, MAGEE u ABSENT: COUNCILMEMBERS: . BUCKLEY (Councilman Buckley arrived at 7:06 p.m.) Also present were: City Manager Brady, City Attorney Leibold, Administrative Services Director Pressey, Community Services Director Sapp, Lake & Aquatic Resources Director Kilroy, Engineering Manager Seumalo, Information/Communications Manager Dennis, Parks & Open Space Manager Fazzio, Planning Manager Preisendanz, Public Works Manager Payne, Recreation & Tourism Manager Fazzio, City Treasurer Weber and City ClerklHuman Resources Director Kasad. PRESENTATION/CEREMONIALS.. . A. Presentation - Riverside Countv Transportation Commission. The presentation by RCTC was postponed to a date uncertain. Agenda Item No. \. ~ page'2- of3J u [\ Page Three - City Council Minutes - May 24, 2005 Certificates of Achievement - Photo Contest. B. n Recreation/Tourism Manager Fazzio & L.E.U.S:DAssistant Superintendent , : John H. Wise presented the certificates. Mr. Wise spoke on behalf of EVCAP and L.E.U.S.D and commended the City on its sponsorship. He detailed the c()ntributionsto the program. Mr. Wise noted that the winners would also be receiving gift certificates to the Lake Elsinore Outlet Center. He commented on the theme"kindness and helpful acts". Councilman Buckley arrived 'at 7:05p'.m. With the assistance of Recreation/Tourism Manager Fazzio, Mr. Wise presented awards to the winners in the ElementarySchool Division; Caleb Gartin, MeganClynes, and Lexi Polini. Mr. Wise noted that judging entries at high school level showed that black and white were some the best. Mr. Wise presented awards to the winners in the High School Division; Amanda Stantz, Lauren Bagwell, and Somer Herthel. Councilman Hickman showed the photo that had won first prize. ,Mr. Wise thanked the City for supporting the' contest. He hoped to continue next year. ' ' Mayor postponed the Teacher Appreciation Week Proclamation to the June 14th City Council Meeting. C. Proclamation - Temescal Canvon High School Junior Varsity Baseball Team. n Mayor Magee called the TemescalCanyon Administrators, Coaches and Junior Varsity Baseball Team forward for presentation, noting that this team won the league championship this year. He noted that last year the team went with 1 win and 21 losses and turned it around to 18 wins' and 4 losses this year. Mayor Magee noted that the Freshman Team had won the League Championship last year, which gave Temescal Canyon two back-to-back league championships. Mayor Magee recognized Patrick Kelleher, Bob Burt and Head Coach Don Krueger. He also recognized Junior Varsity Baseball 'Coach Mark Carlston and Junior Varsity Baseball Coach Rick Sisco. Mayor Magee noted that he had the opportunity to coach with and against these men and they were all gentlemen and sportsmen'. Mayor 'Magee most importantly noted that there was a scholasticrequiremenf as well. ' Mayor Agenda Item No.l-B Page '3 of31 ' Page Four - City Council Minutes - May 24, 2005 u Magee introduced the team and presented proclamations. Coach Carlston thanked Mayor Magee andstafffor the honor. Coach Carlston presented City Council with t~shirts including team names. Coach Carlston thanked Principal Patrick Kelleher, Athletic Director Bob Burt and Head Baseball Coach Don Kruger. Coach Carlston noted that the team started the season academically challenged and finished with an average GPA of3.25. He noted that people asl\ed, what makes ~ champ team? He noted that it was like a good City Council, not about the individuals, but contributions to the team. He thanked the City Council for the recognition. " ..... D. Proclamation ~ Temescal Canvon High School Varsity Basketball Team. MayorMagee called the Temescal Canyon Varsity Basketball Coaches and Team forward for presentation. Mayor Magee recognized Varsity Basketball Coach Mark Williams, Assistant Coaches Phil Jackson and Christian Miley. . Mayor Magee read and presented the proclamation to Coach Mark Williams. Coach Williams thanked the City Council for this recognition. Coach U Williams indicated that a Coach was only as good as your assistant coaches .. and team players. . He indicated that he had the privilege to coach a group of outstanding young men that were outstanding on and off the court. Coach Williams indicated that the team had won all three touJnaments in which they competed. Coach Williams introduced the team and presented the proclamations. . . E. Proclamation- Lake Elsinore Elk'sLodge. . Mayor Magee called Mr. Don Tatlow forward for the presentation. Mayor Magee read and presented the Proclamation. F. .Proclamation ~Knights of Columbus. .. Mayor Magee called Mr. Jim Hunt forward for the presentation. Mayor Magee read and presented the Procl;:tmation. Mr. Hunt thanked the City Council and noted that the heart of their order was family, church and. community. He noted that all the proceeds from their fundraisers were contributed t.o charitable causes. U Agenda Item No. \ B page~of31 (\ Page Five - City Council Minutes - May 24, 2005 Councilman Hickman called Mr. Greg Hamilton forward. He indicated that Greg Hamilton was the exalted leader of the Elks. He indicated that Mr. Hamilton led a group of people to do a lot of charity work and donated a lot' of time working in the community. . Mr. Hamilton thanked the City Council and the community. He noted that they had handed out thousands of dollars in scholarships to local high school students, Mr. Hamilton noted the upcoming Memorial Day festivities: CLOSED SESSION REPORT City Attorney Leibold announced that the City Council met in Closed session regarding two items, one as listed on the agenda and one added by a 4/5thsvote; both items reported that the City Council discussed two items as listed on the . agenda. City Attorney Leibold reported that there were no reportable action on the items. n PUBLIC COMMENTS - NON-AGENDIZED ITEMS - 1 MINUTE Woodrow Rodgers, 31646 Saddle Ridge Drive, commented that there was to be all. audit on the bonds in November, 2004. He indicated that asofthis date the audit -' was not completed. He indicated that from his understanding there were a lot of issues that had come up. He commented that there might have been funds that went where it should not have gone. . ("\ Dennis Sickle, 33445 Megan Court, commented that he was at the meeting to present a petition regarding criminal activities in. his neighborhood. He noted that the petition was a result of a neighborhood meeting that took place after a shooting last week. He noted police records over the past 12 months for the resident in which the shooting took place. He indicated that the neighbors formed a neighborhood watch.' He requested assistance from the City Council. He indicated that their goal was for their families to live safely in Lake Elsinore. He provided the Council with a packet and requested that the names be used by government officials only and not to be made public. He requested the Council keep the issue of safety issue in mind. He also requested the City Attorney to review a more concrete ordinance for disturbing the peace. Agenda Item No. \'5 pageSOf 3\ Page Six - City Council Minutes - May 24, 2005 . u Tim,Fleming, 17970 Lakeshore Drive, announced the Lake Elsinore Southwest Riverside County Juneteenth celebration. He detailed the event would be held at Yarborough Park on June II th, II a.m. to 4 p.rn. He noted flyers available. Mr. Fleming indicated that there would be music, vendors and food. ('. Donna Franspn, Lake Elsinore Citizens Committee, she noted that their newsletter had been made to the residents of Lake Elsinore. She indicated that the Planning subcommittee had been working on improvements along Interstate 15. She indicated that they had a lead on six Palm trees and three, maybe four, antique light standards. She indicated that the Lake Recreation subcommittee had been' .' preparing pamphlet to publicize recreation opportunities in Lake Elsinore. She encouraged positive action to prevent crime. She requested that anyone who would like to.volunteer to ca1l674-1989~ , Mayor Magee requested to add a Business Item to discuss personnel matters and staff recruitment due to resignation of two city employees. He indicated that he would like to disclissthe issue and provide direction to the City Manager. City U Attorney Leibold explained that the BrownAct, Government Code Section 54954.2, did permit the additionof items when the need was immediate and the need arose after posting the agenda. She further explained there needed to be a motion made and 4/5ths vote to add the, item. ' . " MOVED BY SCHIFFNER, SECONDED BY KELLEY AND CARRIED BY. UNANIMOUS VOTE TO ADD BUSINESS ITEM 36. CONSENT CALENDAR ITMES MOVED BY BUCKLEY, SECONDED BY KELLEY AND CARRIED BY UNANIMOUS VOTE TO APPROVE THE CONSENT CALLENDAR AS PRESENTED WITH MODIFICATION TO ITEM 6 AS DISCUSSED AT THE. EARLIER MEETING I. . The following Minutes were approved: a. Joint City Council/Redevelopment Agency Study Session - April 21, 2005. Agenda Item No. \ B page.l.D-or3 ( u n n (' Page Seven - City Council Minutes - May 24, 2005 The foIlowing Minutes were received and ordered filed: b. Planning Commission Meeting - May 3, 2005. c. Public Safety Advisory Commission Meeting ~ April 13, 2005. { 2. Ratified Warrant List for May 16, 2005. 3. Adopted Resolution No. 2005c47, regarding appropriation limits for Fiscal year 2005-2006 (Proposition 4). RESOLUTION NO. 2005-47 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, ESTABLISHING THE APPROPRIATIONS .. LIMIT FOR FISCAL YEAR 2005-06 FOR THE CITY OF LAKE ELSINORE IN ACCORDANCE WITH THE PROVISIONS OF DIVISION 9 OF TITLE 1 OF THE CALIFORNIA GOVERNMENT CODE. 4. Authorized a Cooperation Agreement with the County of Riverside, aIlowing the city to participate in the CDBG Funding Program for fiscal years 2006-07; 2007-08; and 2008-09. 5. Approved the CPI increase and the application for new rates forrefuse.pick- up, recycling and disposal (Exhibit C) to take effect on July 1,2005. 6. Declared equipment surplus and Authorized Nation Wide Auction Company to dispose ofthe equipment by way of a public auction. < . 7. Granted an exemption per Chapter 3.08.070 (F) for the installation of carpet at City Hall and award the contract to DNA Flooringof Lake Elsinore in the . amount of$19,365. ; i 8. Authorized an Agreement with HDR Engineering, at a cost of$98,303, to prepare CEQA compliance documents for East Lake Specific Plan '. Agenda Item No. \ B Page + ol3J Page Eight - City Council Minutes - May 24, 2005 u Amendment No.8. 9. Authorized anAgreement with The Planning Center, at a cost of $28,600, to prepare CEQA compliance documents for the condominium project (APN 379-315-033. . 10. Authorized an Agreement with HDR Engineering, at a cost of $33,439 to ,- prepare the CEQA compliance documents for General Plan Amendment No. . 2005-02 and Zone Change No. 2005-03.. 11. Approved Final Map 31706-3, A residential subdivision by Pardee Homes located north of Canyon Hills Road and east of Hillside Drive, subject to the City Engineer's acceptance, and authorized the City Clerk to accept all dedications, sign the map and arrange for the recordation. PUBLIC HEARINGS 21. . Vacation oBrd Street - Continued from May 10.2005. u Mayor Magee opened the public hearing at 7:39 p.rn. - John O'Doherty, 19025 Grovewood Drive,'Corona, commented that he understood the item was on the agenda for continuation 01' vote. He indicated that he would be happy to have the matter continued. He noted ,that at the last meeting he had presented a viable option for the pump station location. He indicated that;the option he had-proposed had been given to the water district, but he had not received a response from EVMWD. Mr. O'Doherty .questioned if Council had the opportunity to review the alternative. He commented on the staff report and noted a couple of items discussed in the report. He noted that the reported indicated that 3rd was not , generally used by the public for street purposes. He noted that the property was not developed. ,He also noted that the staff report indicated that the portion oBrd Street in question was potentially desirable, but disagreed that it was unnecessary as a public street, essential for use of his property. He noted the staff report had mentioned a number of meetings, but did not mention the outcome of the meetings. He indicated that he had no contact Agenda Item No. \- 0 P,geUof3 \ () n Page Nine - City Council Minutes - May 24, 2005 from anyone. He commented that he was surprised that EVMWD could exercise eminent domain. He indicated that the resolution stated that there was a public hearing and evidence submitted, which there had not been. He noted that there was no mention of how storm water coming under the' freeway would be handled. He stressed the substantial increase in stOIln water. He noted Centex would be a huge contributor to the problem. Cheryl Kirkpatrick, commented that she had come to the meeting with the understanding that the item would be continued again, as there had not been a public hearing on the issue. .She indicated that there had been many public hearings scheduled but not held. She indicated that her objections would be the same as Mr. O'Doherty's and encouraged no action to betaken tonight. .' (\ MOVED BY BUCKLEY, SECONDED BY HICKMAN AND CARRIED BY A UNANIMOUS VOTE OF THOSE PRESENT TO CONTINUE THIS ITEM TO JUNE 14,2005. Appeal . 22. Appeal ofthe Planning Conlmission's Decision to deny' Conditional Use Permit No. 2005-5 for Nadir Rabban and Abbacy Holding Corp. (1 Planning ManagerPreisendanz eXplained that this item was an appeal of the Planning Commission decision to deny CUP No. 2005-5. He indicated that it was for the sale of alcoholic beverages. He noted that the alcohol license was identified by ABC as a Type 20. He indicated that the Planning Commission denied the item on May 3rd, 2005 and on May 29th the applicant filed an appeal. He indicated thatsince that meeting the applicant had revised the business plan. The applicant had decided to upgrade to a more gourmet sale with delicatessen; ihcontrast to a mini-mart. He noted the addendum distributed to the Council late. He further noted revisiohsto the findings of the resolution were more in line withthe ABC requirements. He also noted the two letters attached as well as the revised business plan. He noted that the applicant was present. Agenda Item No. \ ~ Pageq of 3\ . Page Ten - City Council Minutes - May 24, 2005 u City Attorney Leibold noted that the Council had received correspondence from Vida Boice regarding the item. Matthew Pryble, attorney for the applicant, noted thelocation ofthe site. Mr. Pryble provided background <;m the applicant. He detailed past businesses owned by Mr. Rabban; and he hadABC licenses with each business; and had never been cited by the ABC in 23 years. He indicated that Mr. Rabban had been the owner/operator of all of his businesses; and . would do the same with this market. He detailed Mr. Rabban's community participation and organizations he's affiliated with. He noted that he would be anactive member in the Lake Elsinore commuuityas well: He had made' . contact with the school district to assist with school events. .He noted the . reasons the CUP should be approved., He indicated that he himself had been . in Lake Elsinore for a while and noted the traffic congestion problems in the area. He indicated that Mr. Rabban's business would be the only one of its type in that area. He indicated that it would hopefully alleviate some of the traffic congestion in that area. He noted the current need to access main intersection for shopping at this time. He indicated that it was anticipated to U create 15 to 20 jobs at this point. He noted it would generate a sales tax revenue for the City. He noted that Mr. Rabban's existing businesses generated about $6,000 of sales tax per month, per business. He indicated that it would be the newest service station/market in Lake Elsinore. He commented on the design pictures, and indkated that it was consistent with the surrounding area. He noted that he had sent a letterto Mrs. Boice to address her concerns. He indicated that they did not intend to have any outdoor advertising for the sale of alcohol or cigarettes. . He indicated that it would be a very nice market. Lake Elsinore would be lucky to have this businessman in the community. Bill Kipp, Abaccy Holding Company, 361. Railroad Canyon, Suite C, noted . the design of the .convenience store. He indicated that it was designed to be twice. as highas most convenience store, mini-marts and gas stations. He indicated that the original intent was more of a market/convenience store for the neighborhood residents. He indicated that due to IRS restraints Abbacy Holding decided to sell the property. He indicated that two potential buyers had requested to have a beer and wine license. He indicated that he was concerned as to why everyone was asking for a beer and wine license; so he U Agenda Item No.a Page \Dor3.\ [\ Page Eleven - City Council Minutes - May 24, 2005 (\ contacted the Shell Oil Company Regional Office and was informed that of 136 shell stations" 135 had beer and wine licenses. H~jndicatedthat based on Mr. Rabban's business background, he had a wide variet)lofbusiness acumen to operate this facility. He noted that Mr. Rabban would give good service to the community.' He noted'tl1at Mr. Rabban was only one piece of the development and highlighted the lots to be used. . He further noted an office building and medical building locations. He indicated that the station had been designed with a tall canopy to service motor homes, buses,' etc. He offered to answer questions. Mr. Kipp noted that Councilman Hickman had an opportunity to visit their office on Friday and he had pointed'out to him that only a small fence separated the park. He indicated that,Councilman Hickman expressed his concerns that it might be public safety issue; . although it was not included in the original CUP, Abbacy Holding would donate $5,000 to the City for specific use of building the fence to prevent public safety issues. He indicated that they would submit upon the approval , of the CUP a letter to the City for recordation. Councihnan Hickman noted he did not want children running across .Summerhill Drive. Mr. Kipp noted , that it should have been considered in the original CUP. , . Mario Nunez, 31744 Canyon Estates Drive, commented that it was a bad idea and requested that the Council not to approve the CUP. He indicated that his neighbors could not'attend the meeting, but this would create more , traffic and more people wandering into their neighborhoods. He expressed concern for peace of mind, as the neighborhood would be unsafe. He indicated that they did not need more gas stations. He indicated that he had paid enough money to Mr. Kipp due to the City bond issues. Mayor Magee noted that the projectwas approved August, 2003, and the only issue anhis time was the sale of beer and wine.. (\ Vida Boice, 17 Ponte Nigra, expressed-that she was greatly distressed with this issue. She noted her e-mail. She indicated that she strongly objected to this item. She also indicated that she did not understand why the applicant felt the need to have a lawyer. She noted that the applicant's personal background had no impact on this decision. She noted that the decision would impact families in the area. She questioned how the market would Agenda Item NO.l.5..- pageJcLof.3L Page Tweleve - City Council Minutes - May 24, 2005 . u ease the traffic; and suggested that the attorney conduct a traffic study to . show it. She suggested that sales tax could be generated in other ways. She indicated that she did not understand why the City was giving into all of Mr. Kipp's request. She questioned in whose best interest was this project. She indicated that in the Planning Commission Meeting there was a reference to having a contactwith the Police Chief Fetherolf, and he did not feel it .was beneficial to have a liquor license in that area. She noted that there was a moratorium. '. Lon Bike, 23905 Clinton Keith Road, commented. that he was the architect fot the project; and was available to answer questions on the architecture. . Tim Fleriring, 17970 Lakeshore Drive, commented that he would like to read ; a corrment from Lorraine Watts, thanking the Planning Commission for the denial of the CUP submitted byNadar Rabban and Abbacy Holding Corp. . She indicated that there was a moratorium on the issuance of CUP's unless the Police Department had determined a need of public necessity for the . U community to have an outlet to sale beer and wine. She further indicated another outlet was not needed. She suggested the city had its quota. Edith Stafford, Lake Elsinore, addressed the fact that Mr. Kipp offered $5,000. She suggested that might cause a conflict of interest. She indicated that Mr. Kipp had already donated heavily to a couple of Council people present. She suggested that they might not be eligible to vote on this item. She indicated that it should not be approved, in view of the gridlock. 'She concurred that it was a beautiful project,.but the location was wrong. She noted that Vons sold liquor and there was a liquor store on SummerhiIl Drive; and to add another liquor store was not right. . She suggested that there were enough problems with drunk drivers. She questioned the' number of lives taken by drunken drives in Lake Elsinore to date. She indicated that the Council should carefuIly consider before adding another liquor store. WiIliamArnold, 31556 Sagecrest Drive, expressed his concerns with the approval of this permit.. He indicated that it was slowly being turned into a commercial eyesore. He indicated that the serious problem was that it was acrossfTom a park where children play . , U . j. Agenda Item No. \5 Page 11-01'3\ n Page Thirteen-City Council Minutes - May 24, 2005 ball, and occupy their time. He indicated that the commtiriity was concerned about a: green area being developed. He 'indicated that green areas had a tendericy to. attract the homeless; and beer and wine across the street, was asking for trouble. He noted that there were other locations selling wine and beer, one more is overkill. He commented that if Council cared about the cormimnity thari they should not approve the CUP. Ron LaPere, 16867 Wells Street, commented as a matter of information several years ago he had owned three restaurants. He indicated that beer and wine license were available to them. He suggested emphasis in this case should be on foods, with secondary emphasis on beer and wine. He indicated that he heard from the applicant that it would notbeadvertised. He asked the CounCil to give careful consideration to the primary use the . applicant was requesting. ' " n Councilrrllin Buckley indicated that he was not sure how he would vote on the item. He reiterated to everyone that the'business could go in, the question was the beer and wine license. He noted that the license added to financial viability ofthebusiness. He also noted that'the down side was the proximity to,the paik He noted that there was aliquor store across from a middle school and high school. He indicated that at the August, 2003 Planning Commission meeting Mr. Kipp stated that there would be no alcohol sales on the property. lie referred to a recent letter from Mr. Kipp that suggested there would be'a disadvantage without the sale of beer and wine. . Councilman Buckley expresse'd his concern with a Trojan horse' effort. He indicated that on the other side it was a CUP, so the community could watch it closely,'and ifthere'were problems, they could notify the Couricil and the Council had the authority to pull the CUP. He indicated that there was no outside advertising and percentage of floor space was limited to 20%. He indicated that the sales tax side was low fofthe city, but thinks the amount is a bit low. He indicated that the offer of$5,000 for the fence might hot be enough, but it was a very generous offer, although it was not a conflict. He noted political donations were exempted from conflict of interest laws; , n Councilman Hickman indicated that he would like to investigate this Agenda Item No. \ g page1..3.. oc31 Page Fourteen - City Couqcil Minutes - May 24, 2005 u moratorium on the license. He deferred to Police Chief Fetherolf. Police Chief Fetherolf indicated that he was not aware of conditions of the moratorium. . City Manager Brady indicated that it was not a City . .' . moratorium, and hewas not aware ofthose conditions. Planning Manager Preisendanz noted that from his discussions with ABC, they could not verify where the moratorium originated from. He noted that the just of the _ moratorium did not prohibit alcohol licenses, but would have to make a finding of public convenience and necessity. He noted the divisions of the CitY and the available licenses. He indicated that according toABC it was not a prohibition, but the City must make a finding. . , . Mayor Pro Tern Schiffner questioned the p~ol:1ibition as read. He indicated ,that Council had listened to a number of people against the license. He indicated that he was very surprised when the item went before the Planning Commission only one person spoke against it; and that individual was there tonight to speak against the project. ,He commented that he thought he would see a group of people thatIived closer to the project; <.md there was U only one person. He indicated that he had heard that person speak against a number of other things. He indicated that he would be in favor of the CUP, becaus(: he had not heard a justifiable reason to oppose the issuance. -I', Councilwoman Kelley indicated that she was struggling on two fronts. She indicate that the first was the original plan, in which she was on the .council and voted for the plan specifically because it had no beer and wine sales. She if\dicated that she would be reversing her own original decision; and in order to reverse it, she would need to find.public convenience or necessity for it. She noted the only thing was that. it would be difficult to sell the property without the CUP. She indicated that the .second issue she was struggling with was when it came before the ~lanning Commission, was it proposed asagourmet venue with beers and wines and gourmet sandwiches or was that a change because the Planning Commission rejected the request. Pianning Commissioner Chairman Lapere indicated that from his. understanding it was a convenience market specia1izing in certain food items, beer and wine were an added item as it related to the original concept of a convenience market. He indicated that it did indicate, at that time, that beer apd wine would not be promoted; there would be no signage on the U Agenda Item No. \ 2> page\ct of~ n Page Fifteen - City Council Minutes ,- May 24, 2005 ' outside of the. market. Councilwoman Kelley questioned if itwas presented as gourmet type. (\ Chairman Lapere confirmed. Councilwoman Kelley requested comments from Police Chief Fetherolf. Police Chief Fetherolf indicated that as a law enforcement.professional it was difficult to separate personal values from professional recommendation. He noted it was difficult for him to say that he finds a,need or public convenience for alcohol in any establishment. He noted that he had read a study that indicated that there had been more life lost and bodily injury and property damage'as a result of alcohol, than any and all wars suffered on earth. He indicated that from his professional view, he was constrained by a few parameters. The ABC had established certain criteria for what was an acceptable place for a license. ,He indicated that as a general rule he did not.recommend against the recommendations of ABC. Council had opportunity to provide a Conditional Use Permit. He indicated that hewasnotin opposition of ABC regulations; and find, that he had no legal grounds to recommend against the'license, as the applicant had no criminal history.' 'He indicated that if the ABC determined that they were going to allow the license, and the City was inclined to grant the CUP, than he would not oppose that recommendation actively. Councilwoman Kelley noted she wanted to hear from him, and noted it was a tough call due to personal and professional views. She indieated that there were only three Planning Commissioners present at the meeting. She indicated that there was only one person speaking against the project that evening. She indicated that she would need to weigh this matter. Councilman Buckley noted that public convenience and necessity if a gourmet shop, it was inconvenient to buy caviar andkool-aid. He indicated . that it was difficult to show. the necessity side. ('\ Councilwoman Kelley questioned how easy would it be to pull the CUP once it was granted. City Manager Brady indicated that with a CUP there were Conditions of Approval. He indicated that those Conditions of Approval would be the basis for compliance or non-compliance. Agenda Item No. \ R page'S::- of31 Page Sixteen - City Council Minutes - May 24, 2005 u Mayor Pro Tern Schiffner indicated that since it was legal in this country, there were lots of places that sold alcohol. He indicated that they were not there to legislate on the prudence of selling liquor to people. City Attorney Leibold confirmed the accuracy of Councilman Buckley on the conflict of interest issue. She indicated that the donation to the City was not a donation to the individuaLCouncilmemebers; and did not present a conflict of interest She further indicated that political campaign donations were not income within the meaning of Political Reform Act nor did it create a conflict of interest. She indicated that the finding that wasrequired to satisfY ABC was a finding of public convenience or necessity. -- :. Mayor Magee noted itwas a difficult decision. He indicated that he was not given an opportunity to vote on the reformation ,of this project, as he did not - participate in the general plan for the area. He indicated that he did not vote on mini storage. He indicated the issue was the beer and wine sales. He noted that he had heard the comments made by Mr. Arnold, but did not U believe that by authorizing the sale of beer and wine would lessen the property values. - He indicated that Councilman Buckley pointed out the ability to revoke the CUP if the applicant was not in compliance. MOVED BY SCHIFFNER, SECONDED BY MAGEE TO ADOPT RESOLUTION NO. 61 APPROVING CONDITIONAL USE PERMIT NO. 2005-05 AND ADOPTING THE FINDINGS OF PUBLIC CONVENIENCE OR NECESSITY. Councilwoman Kelley questioned the conditions for the CUP, and if any will be added or if they were adequate. She indicated that she wanted to ensure no signs would be posted; and their ABC license was followed to the-letter. Mayor Pro Tern Schiffner_ indicated that all of the conditions regarding all of those conditions were all included in the conditions in motion. Planning Manager Preisendanz noted that the conditions were specified from the code. Mayor Pro Tern Schiffner commented that if Council felt it was a more sensitive area the residents could be more responsive in watching for.- violations. Planning Manager-Preisendanz confirmed the specifics. U Agenda Item No. \ 6 Page' ~ or~ (\ Page Seventeen - City Council Minutes - May 24, 2005 n , Councilman Hickman questioned the proper way to handle the $5,000 donation offered by Mr. Kipp. City Attorney Leibold indicated that Mr; Kipp recommended not to add it as a Condition of Approval for the CUP, but , the Council had the choice to add it as a specific condition of appi-~val, or . accept the donation and issue the permit concurrently with the provision of the funds for the specific purpose of the construction of the fence based on safety concerns. Councilman Hickman questioned how to handle the project if the cost Went over $5,000. City Attorney Leibold indicated that Council could request or require that Mr. Kipp or the applicant fund the full cost of that fence. Councilman Hickman requested adding to the motion that Mr. " Kipp be held responsible for the construction ofthe fence. City Attorney , Leibold indicated that it would be in. the scope ofthe Council discretion to install or finance the 'cost of installing a barrier fence. Mayor Magee noted that the easiest way to ensure the construction ofthe baqier fence was to add it to the conditions of approval. Councilman Hickman qu'estioned ifthe , applicant would support that as a condition. Mr. Pryble indicated that the " , applicant would not support that as a condition of CUP. (\ Mayor Pro Tern Schiffuer requested clarity on the fence. He noted that there was a relatively low ornamental wall in the area. Councilman Hickman ',' noted that the fence stopped by the park; and he would Iikeit to continue. Councilman Buckley noted the site configuration. Mr. Kippnoted the current fence configuration along the park. Councilman Buckley noted finishing the fence all the way to the comer to prevent kids from crossing the street. Mr. Kipp indicated that his donation would be to the City to construct the fence through the Public Works Department. He indicated that his donation was an act of public safety. He further indicated that they did not want this as a condition for the CUP. He indicated that they wanted it entered into the record and'they would verify by sending a letter to the City tomorrow. Councilman Hickman 'questioned if more funds were needed, would they cover the cost. Mr. Kipp indicated that they would not, but felt it could be done for Jess than $5,000. Mayor Magee deferred to Community Services Director Sapp and questioned the cost of the barrier fence. Mr. Sapp noted that it might be a little more. He indicated that he was not sure of the run ofthe fence. He advised that it might cost more than $5~OOO. Agenda Item No. \ 8 Pagellof3 Page Eighteen - City Council Minutes - May 24, 2005 u Buckley noted the e~isting fence and suggested 200 to. 300 feet of fencing. FOREGOING MOTION CARRIEI) BY A VOTE OF 3-1-1WITH KELLEY CASTING THEDESCENDIG VOTE AND, BUCKLEY ABSTAINING. BUSINESS ITEMS ';- , . . 31. . .'Second Reading - Ordinance No. 1150 - M-3 Zoning District.. . , Weber addressed the Pacific Clay Annexation coming up. . He indicated that .the City could not, at this point, take on that area and support it with police .and fire.. He noted the Rosetta Canyon project and. that the City did not have money to fund that fire station.. He indicated that the Council was now talking about annexing another huge amount of property. He noted bond meetings held today. ,He suggested that the City needed ,to slow down and figure O)lt where. we were at. He indicated that the City could notprovide the services for the.areas that were currently being developed. He indicated U that according to the budget, by 2010 the City had projected a negative $7 million inunallocate~ fund~. . Mayor Pro Tern Schiffuer. indicated that the ordinance was justto adopt a zone.. ,. MOVED BY BUCKLEY, SECONDED BY SCHIFFNER TO ADOPT ORDINANCE NO. 1150, UPON SECOND READING BY TITLE ONLY: ORDINANCE NO. 1150 . AN ORDINANCE OF THE CITY COVNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA APPROVING THE ADOPTION OF A NEW "M73" MINERAL RESOURCES AND RELATED MANUFACTURING DISTRICT" AND AMENDING THE CITY OF LAKE ELSINORE MUNICIPAL CODE BY ADDING CHAPTER 17.61.. UPON THE FOLLOWING ROLL CALL VOTE: Agenda Item No. \ 0 PageJB,r3\ U (\ Page Nineteen - City Council Minutes - May 24, 2005 AYES: COUNCILMEMBERS: BUCKLEY, HICKMAN, KELLEY, SCHIFFNER, MAGEE NOES: COUNCILMEMBERS: None ABSENT:' COUNCILMEMBERS: None' ABSTAIN: COUNCILMEMBERS: . None. 32. Amended Concessions Agreement to include PWC rental and food conceSSIOn. (\ Lake & Aquatic Research Director Kilroy indicated that this item was for approval of an amendment to the agreement with Pyramid Enterprise to approve pwc rental and food concession at the Seaport Boat Launch. He indicated that they were requesting one hot dog vendor cart and the ability to rent eight pwc's at the boat launch. He indicated that they were also requesting a portable storage container on site for the business. He suggested that it would be a benefit to the visitors to Lake Elsinore.. He . noted that the City would receive 7% of the gross'sales. He indicated that based on earlier comments made at the 4 p.m. Study Session he would recommend changes to the Conditions of Approval for the agreement as distributed. He noted that he would strike reference. to sales of these items on public beaches limited to'the site plan in the agreement; andalso recommended item 2 to include one vendor cart, subject to approval, specify 8 vessels, and specify 200 square foot structure for storage. He recommended approval with changes as noted. Mayor Pro Tern Schiffner indicated that he respected. the recommendation, but he was curious on the reason for not allowing sales to occur on other parts of the beach. Mr. Kilroy indicated that this was the request of Pyramid Enterprises: " (\ . Councilman Buckley questioned the portable shed. He questioned why not . trailer everything back to the campground at the end of the night. Mr. Kilroy indicated that the pwc's would be trailered to the campground along with the Agenda Item No, \ ~ page'R of3\ Page Twenty - City Council Minutes - May 24, 2005 u hot dog cart. He indicated that the trailer for business items might be an . enclosed toy trailer such as for off-road vehicles or pods. Councilman Hickman clarified that it was not an overseas 20 foot container. Mr. Kilroy confirmed and noted it would be subject to City Manager approval. Councilman Hickman noted that he had a friend who wanted to do parasailing; and he questioned who the point of contact would be. Mr. Kilroy indicated that the individual should work with the City. MOVED BY SCHIFFNER, SECONDED BY KELLEY AND CARRIED BY A VOTE OF 4-0 WITH BUCKLEY ABSENT TO APPORVE THE FIRST AMENDMENT TO THE EXISTING AMENDED AND RESTATED LICENSE AGREEMENT FOR OPERATION OF THE CAMPGROUND, DAY USE AND BOAT LAUNCH FACILITY WITH CORRECTIONS AS PROPOSED. 33. 2005 4th of Julv Celebration. u Recreation/Tourism Manager Fazzio noted the options for this year's event. She noted that last year the City ,funded fireworks along with a patriotic boat parade which was very well received. She further noted that in the past fireworks were offered by the Lake Elsinore Storm. She indicated that this . year the Storm was home on the 4th. She noted the three options and detailed them. She also noted the potential drawbacks and limitation on use of the levee. Mayor Pro Tern Schitfuerproposed using Option I as listed in the staff report with addition of staff directed to work with the Storm to provide the pyrotechnical show in years that the Storm did not to guarantee an annual show. Councilman Hickman thought the City should have its fireworks show. He indicated that Mr. Oster was willing to have his people work together with the City to prevent any problems. He noted that he enjoyed the boat parade. He suggested coordinating .with the Storm and bringing the item back to Council on June 14th.. . Agenda Item No. \ '\3 Page 2..0 of 3 \ u (\ Page Twenty-one - City COUlicil Minutes - May 24, 2005 Councilwoman Kelley thought the City deserVed a fireworks show. She indicated that the City did not want to compete with the Storm show. She noted the discussion of alternating shows for the years that the Storm was not in town. She believed consistencywas very important, but would be willing to acquiesce to the Storm this year, as long as when they did not have fireworks, the City did. (', Councilman Buckley commented on Americanism. He noted that he had never received a phone call against fireworks. He noted everyone used city services, but did not always realize whaf they were paying for with tax dollars. He indicated that the fireworks show was worth the cost. He noted that last year traffic was stopped along Lakeshore Drive and there were thousands of people in the City. He suggested doing two shows. . He suggested approving the funds and work with the storm to coordinate and publicize: He noted that when the Storm was out of town on the 4th they did . . fireworks orithe 3rd. He noted that it was also a concept of setting a tradition. He noted that it was the first time in 10 years the City had paid for the show. Mayor Magee questioned the City staffing costs for the boat parade alone. 'Recreation/Tourism Manager Fazzio deferred to Lake & Aquatic Resources Director Kilroy. Mr. Kilroy indicated that the cost was very reasonable. He indicated that typically staff would shift the hours to the weekend, Mayor Magee commented that when talking about tradition, the 4th of July was fireworks. He suggested keeping the boat parade alive, there was the tradition. He suggested that if the Storm was doing fireworks the City should not duplicate, but when they were not in town the City should have the fireworks show. Councilman Hickman expressed the need for the City to have a fireworks show. He indicated that the City's fireworks show was for everyone and did not cost anyone anything. . MOVED BY SCHIFFNER, SECONDED BY MAGEE TO PROVIDE FIREWORKS ON THE YEARS THAT THE STORM DID NOT AND TO (\ MAKE SURE THAT THE BOAT PARADE TOOK PLACE EVERY YEAR. Agenda Item No.' b Page.2lof3l Page Twenty-two - City Council Minutes - May 24, 2005 u MOVED BY BUCKLEY, SECONDED BY HICKMAN A SUBSIDIARY MOTION TO AUTHORIZE $20,000 FOR THE BOAT PARADE AND FIREWORKS FOR 2005 AND DIRECT STAFF TO WORK WITH THE STORM TO COORDINATE AND PUBLICIZE THE EVENT. '- THE SUBSIDIARY MOTION FAILED BY A VOTE OF 3-2 WITH KELLEY, SCHIFFNER AND MAGEE CASTING THE DESCENDING VOTE. THE ORIGINAL MOTION CARRIED BY A VOTE OF 3-2 WITH BUCKLEY AND HICKMAN CASTING THE DESCENDING VOTE. 34. Branding and Public RelationslMarketing RFP: Recommendation for Professional Services Consulting. " '. i' Mayor Magee noted that this item was spearheaded by a subcommittee made up of Councilman Hickman and Councilman Buckley. He noted that there ,was one request to speak. U Councilman Buckley gave an overview of the item. He indicated that last October the City Council started discussing public relations and improving the marketing strategy-and image of Lake Elsinore. He indicated that in February the Council approved an RFP and created a subcommittee to start looking for firm to do the job. He explained the reason for doing this. He . noted past image problems, but the city had changed dramatically. He stressed the shift in the ,community, which people were starting to hear about. He stressed the need to be sure businesses, tourists, etc. knew about the changes. He indicated that by creating a more positive image was the start down the right road to growth. He indicated that this was a roadmap for the growth. He noted that in the next year or so there would be a , , decision on the new road to Orange County; and improving our image would not hurt. He noted the perceptions that could be repaired ,by proper marketing, etc. He noted there were also problems inside the community; and problems communicating within the community. He believed by having strategies in place would help bring people together inside the community. He stressed that this was not an effort to attract more housing development. He indicated that there would be a poll, focus groups, logo, new look for Agenda Item No. \ g P'ge '2 'lor 3 \ u n Page Twenty-three -City Council Minutes - May'24, 2005 n stationary, trucks, street signs, and strategy and action plans to go forward. Phase I was the creation of message points. Phase 2 was the physical stuff, creation of a web based marketing tool kit. Everyone in Lake Elsinore . would participate: He noted that the subcommittee received 10 responses to the RFP. He noted 3 firms were interviewed. Lake Elsinore Marketing Group and Bloomfield Group were chosen specifically due to interest in the community. The subcommittee also requested consideration of another firm called Cresta West. He indicated that if approved, Phase I would start in 6 to 8 months starting in the next fiscal year. Phase 2 would start when Phase I was done. He indicated that the cost for Phase I was $92,000 and Phase 2 was to be determined, but would be about $100,000 to $150,000: He indiCated that the City would be able to track recreation/tourism, sales tax, etc. He indicated that the timing had to be righhn order for it to work. He introduced Information/Communications Manager Dennis and George . Bloomfield and William Furlough,LEMG. He indicated that representatives from Cresta West were unable to attend. " .; ': Mayor Magee noted that there was a request to speak on the item from Chris Hyland. He noted that Ms. Hyland had left the building. . George Bloomfield introduced himself and Bill Furlough to the Council. He indicated that he was introduced to Lake Elsinore about four years ago and fell in love with the community. He indicated that he later purchased some property and look forward to building a home in the area. He indicated that Bill Furlough would be heading the research aspects.. . ,., . Bill Furlough offered to answer any questions. Information/Communications Manager Dennis'noted the cost rational as discussed at the 4 p.m. Study Session. He indicated that the bulk of the expenditure for Phase I was research. He advised thatthe research was the most critical stageofthe process. n City Treasurer Weber indicated that the 2006-07 budget reflected the City would be negative $2 million. He suggested getting help from developers. He stressed the shortfall for next year. He indicated that the City needed to Agenda Item No. \ SS Page z.3of 3 \ Page Twenty-four - City Council Minutes - May 24, 2005 . u get out of fantasy land and dream that there would be money from somewhere.' t' .Councilman Buckley noted that, there was already a line item in the budget for this and a possible lobbyist. He noted money spent by EVMWD on their legislative affairs as well as other cities. Mayor Pro Tern Schiffner indicated that he was not sure whether the City did or did not need the service at this time. He indicated that he was disturbed with the amount of money it would cost, and suggested.smaller steps. He questioned how much benefit, if authorized the research part of this for the first three items to see what the thought process was. Mr. Furlough indicated research was the foundation for the plan, but would not get the City . anything. He advised that the research was the first block for the program. He suggested that if the City was only doing theresearch, He would suggest not invest in the research. Mayor Pro TemSchiffner suggested it would tell the City ifit would be successful in advertising any further. Mr. Furlough " indicated that it would be valuable, but only useful if the City did something else with it. Mr. Bloomfield indicated thatit equated to determining the City's intentions. He indicated that it was no reason for the research if there , was no intention to move forward. u Mayor Pro Tern Schiffner indicated that the future of the community. was around the development of the lake. He indicated that the City, did have a direction, so he did not feel the need for someone to tell us what we should do here. He noted that a big part of the land in the City was going to habitat. Mr. Bloomfield indicated that the City indeed had direction. and was intended to move forward, but dealing with development of habitat, etc., by providing the research it was part of a larger program. He thanked Mr. Weber for bringing up the point of managing where this would stop. He concurred with sharing in the long term costs with, the development community. Schiffner questioned that itwas not worthwhile to do the research without doing it all. Mr. Furlough confirmed, and added that they did not want the Council to do something that did not create a long term benefit for the City. u Agenda Item No. , .6 page'Z..'-1: of3 n Page Twenty-five -City Council Minutes -May 24, 2005 Councilwoman Kelley commented that she believed the City was in need of revitalizing and this would be a benefit, but she did not know how the City would pay for it. She noted that the Council would be approving $240,000. She noted that the Council was looking at a lobbyist which was very . . expensive. She indicated that the Mayor had mentioned that from the lobbyist the City would receive calculable returns, whereas with this item the City would be hoping that everything works and it would be hard"to measure what the City would get back dollar for dollar. She noted that it '. was too expensive atthis time. n Mayor Magee commented, with all respect to the subcommittee and the presenters, he would show his lack of sophistication in this process, ~e thought the Council was looking for a new logo. He indicated that he had a tough time getting his arms around this project. He shared City Treasurer Weber's concerns. He indicated that the City was looking at expenditures in excess of revenues in the next fiscal year. He reiterated that he thought the Council was talking about a change in logo. He indicated that he could not : agree with the expenditure at this point. . Councilman Buckleyindicated that when discussing the project, a quarter million would be smaller than funding in other cities in our area. Mayor Pro Tern Schiffner noted the comment made earlier about other agencies spending more money; and one referred to was EVMWD. He indicated that the difference between the City and Water District was that . they sold a product for a profit. He stressed the differences between the agencies. He indicated that he was not afraid of being out of money, but felt this was an item that the City could no afford. Councilman Buckley noted this year's budget was in the black including this project and the lobbyist. ('. MOVED BY MAGEE, SECONDED BY KELLEY TO APPROVE TO CONTINUE THE ITEM OFF CALENDAR AND DIRECT THE. SUBCOMMITTEE TO MEET AGAIN AND REVIEW THE COSTS INVOLVED. " /' Agenda Item No. \ B Page'2Sof,3..1 Page Twenty-six - City Council Minutes - May 24, 2005 u . Councilman Hickman questioned if Council wanted a slide presentation. Mayor Magee indicated that he wanted the price to be lower. MOVED BY BUCKLEY, SECONDED BY HICKMAN A SUBSIDIARY MOTION TO APPROPRIATE $92,000 AND AUTHORIZE THE. CITY ATTORNEY AND STAFFTO CREATE A FINAL PROFESSIONAL' SERVICES AGREEMENT WITH LEMG AND CRESTA WEST. THE SUBISDIARY MOTION FAILED BY A VOTE OF3~2 WITH KELLEY, SCHIFFNER AND MAGEE CASTING THE DESCENDING VOTE. THE ORIGINAL MOTION CARRIED BY A VOTE OF 3-2 WITH BUCKLEY AND HICKMAN CASTING THE DESCENDING VOTE. 35. . Request for donation of van - H.O.P.E. . MOVED BY KELLEY, SECONDED BY HICKMAN AND CARRIED BY A U VOTE OF 4-0 WITH BUCKLEY ABSENT TO APPROVE THE DONATION OF ONE VAN TO H.O.P.E. PROVIDED THAT ALL OF THE CONDITIONS IMPOSED UNDER LEMC 3.12.030 ARE SATISFIED;. _ 36. Added item - Regarding personnel matters and staffing recruitment. . '." . i, Mayor Magee noted that within the course of the last seven days the City had received resignations from the City Clerk/Human Resources Director and the City Engineer. Mayor Magee proposed directing the City Manager to work on an reorganization and recruiting for all three positions. He requested that he utilize the existing.consultant used for the City Manager recruitment for the City Clerk position and return with recommendations on " . the other positions. Councilman Hickman requested clarification that Interim City Manager look at hiring people. Mayor Magee clarified that he was direCt the existing consultant to start recruitment for a City Clerkto work for the City Council; and then develop a plan for recruitment or reorganization for Human Resources and City Engineer for consideration at the next meeting. U Agenda Item No. \ B Pag' '2-Lq,f31 (\ Page Twenty-seven -City Council Minutes - May 24, 2005 (\ (\ Councilman Hickman questioned the decision on the City Mariager position. Councilwoman Kelley noted that the subcommittee had narrowed it down to four finalists. She noted that it was a matter of getting it on calendar for a full council interview of four finalists. MOVED BY MAGEE, SECONDED BY SCHIFFNER AND CARRIED WITH A VOTE OF 4-0 WITH BUCKLEY ABSENT TO DIRECT THE CITY MANAGER TO UTILIZE THE EXISTING CONSULTANT USED FOR THE CITY MANAGER RECRUITMENT FOR THE CITY CLERK POSITION AND RETURN WITH RECOMMENDATION ON THE OTHER POSITIONS. THE REGULAR CITY COUNCIL MEETING WAS RECESSED AT 9:59 P.M. THE REGULAR CITY COUNCIL MEETING RECONVENED AT 10:02 P.M. PUBLIC COMMENTS - NON-AGENDIZED ITEMS - 3 MINUTES Edith Stafford, indicated that it was time for clarification. She questioned the City Attorney on how do you determine significant exposure to litigation without knowing who it is being exposed to. Bhe indicated that it might be a violation of the Brown Act. She suggested hiring an in house attorney for about 250,000 per year and then the City could afford the branding/marketing which she thought would be very beneficial and brought in revenue. She indicated the City did not need a high priced attorney. CITY MANAGER COMMENTS City Manager Brady commented on the following: I) He congratulated Vicki Kasad and Ken Seumalo on their appointments. He commentedthatthey'would be sorely missed and their absences would be felt. He wished them the best. Agenda Item No. I.B Page2J;;f.3J Page Twenty-eight - City Council Minutes - May 24,2005 u CITY ATTORNEY COMMENTS . City Attorney commented on the following: 1) She responded to the closed session question - in each case the City had received written orora1 threat oflitigation pursuantto the Brown . Act: 2) . She commented that she would be happy to discuss with councilor the community the legal expenses and pros or cons of in-house or . contract services. COMMITTEE REPORTS None. CITY TREASURER COMMENTS u City Treasurer Weber commented on the following: - . - -. , 1) He gave an update .on the Summerhill bond issues. He noted that he. . met with the consultant and underwriter today. He indicated that this', had been long and extended, but he would get to the bottom of it. He , hoped for a comp1etedRFP in two weeks. He noted that the Wasson Canyon money was still there and would be allocated to the people in Summerhill. 2) He noted that Vicki Kasad was the first person he had met at City Hall and was nice to him at all times. He commented that she was always' able to help him with his requests; and he would miss her. 3) He suggested that the Council kept in mind that the new City Manager would need a lot of leadership skills and finance savvy. He noted a good manager with real leadership in the financial sector. u Agenda Item No. \ B page-1B,r 31 (1 n n Page Twenty-nine - City Council Minutes - May 24, 2005 CITY COUNCIL COMMENTS Councilwoman Kelley commented on the following:'., " I) She announced the Arts Network poetry contest on May 26, at6 p.m. ' at the Cultural Center. ' 2) She noted that the concert in the park was moving forward again and detailed the musicians starting in August. ' 3) Congratulated Ken and Vicki on their new positions and wished them well. Mayor Pro Tern Schiffner comrilented on the following: I)' He notedthat inthe years when worked for a large city,-he had, worked with and known several city engineers, managers and clerks. He noted that he would sorely miss Vicki and Ken. He noted that Ken was here a short time, but he was an outstanding engineer and would continue to be one. He noted he had known Vicki since he came here; and she was a wealth of information and would miss her. Councilman Hickman commented on the following: I) He indicated that he would miss Ken's golfing. He thanked Vicki for putting up with all the aggravation. 2) He reminded everyone of the Memorial Day service at the cemetery. " . '; '. Councilman Buckley commented on the following: I) He thanked Ken and Vicki. He suggested that the new applications' include golf handicap. He noted that Ken won the City vs. City tournament every year. j' Agenda Item No. \ lS Page2ey or3.\ Page Thirty - City Council. Minutes -May 24,2005. u Mayor Magee commented on the following: 1) Announced the following upcoming events:. June 4th - Just for Kids Fishing Derby. June 4th - Household Hazardous Waste Collection 9 a.m: to 2 p:m. June 5th - Open Air Market June 5th - INT Water ski and Wakeboard Competition . June 11 th - Junteenth Celebration June 11 th - Lake Elsinore Bass Club Tournament June 11 th - Canyon Lake Wakeboard Club Competition 2) Noted there was a serious gas leak at KB Homes tract, located at SkylarkJPalomar. He thanked the public safety personnel and gas . company for their assistance. He urged KB to watch their step. 3) Heindicated that the.Planning Commission and Public Safety. U . Advisory Commission applications would be extended to July 1 st and encouraged the public to apply and noted applications were available in the City Clerk's Office.. II . \ 4) He noted the community meeting with Mr. Sickle on Macy Street and the incredible ideas that had come from the meeting. 5) He requested that the community remain patient for the Corydon road improvements. '. 6) . He acknowledged City Engineer Seumalo resignation. He addressed .. City Clerk/Human Resources Director Kasad and noted .her years of service and relationship to the community and noted her resignation was a shock. ," '..' '" .1, u Agenda Item No. I B Page~of~\ n Page Thirty.one - City Council Minutes - May 24, 2005 (\ (\ ADJOURNMENT . The Regular City Council Meeting was adjourned at 10:14. p.m. ROBERTE.MAGEE,MAYOR CITY OF LAKE ELSINORE ATTEST: VICKI KASAD, CMC, CITY CLERK! HUMAN RESOURCES DIRECTOR CITY OF LAKE ELSINORE Agenda Item No. \..\2:, Page.22Jof 3 \ u u u n . MINUTES REGULAR CITY COUNCIL MEETING CITY OF LAKE ELSINORE 183 NORTH MAIN STREET LAKE ELSINORE, CALIFORNIA TUESDAY, JUNE 14,2005 ****************************************************************~*. CALL TO ORDER The Regular City Council Meeting was called to order by Mayor Magee at 5:25 p.m. ROLL CALL PRESENT: COUNCILMEMBERS: BUCKLEY, HICKMAN, KELLEY, MAGEE (\ ABSENT: . COUNCILMEMBERS: SCHIFFNER Also present were: City Manager Brady, City Attorney Leibold, Administrative Services Director Pressey, Community Services Director Sapp, Lake & Aquatic Resources Director Kilroy, City Engineer Seumalo, Information/Communications Manager Dennis, Parks & Open Space Manager Fazzio, Planning Manager Preisendanz, Public Works Manager Payne, Recreation & Tourism Manager Fazzio, City Treasurer Weber and Deputy City Clerk Ray. CLOSED SESSION a. CONFERENCE WITH LABOR NEGOTIATOR(Gov't Code S 54957.6) City negotiator: Special Counsel, Steve Filarsky Employee organization: Laborers' International Union of North America Local 777 b. CONFERENCE WITH LABOR NEGOTIATOR (Gov't Code S 54957.6) City negotiator: City Council n . Unrepre~ented employee: City Attorney Agenda Item NO.K- P'ge -L of ) ':i- Page Two -City Council Minutes - June 14,2005 u c.CONFERENCE WITH LEGAL COUNSEL ~ ANTICIPATED. LITIGATION- Significant exposure to litigation pursuant to subdivision (b) ofGov't Code ~ 54956.9 (3 potential cases) City Attorney Leibold announced the Closed Session discussion items as listed above. THE REGULAR CITY COUNCIL MEETING WAS RECESSED TO CLOSED SESSION AT 5:30 P.M. The Closed Session discussion was completed at 6:45 p.m. RECONVENE IN PUBLIC SESSION (7:10 P.M.) PLEDGE OF ALLEGIANCE The presenting of the flag and Pledge of Allegiance was led Boy Scout Troop 604. U INVOCATION - MOMENT OF SILENT PRAYER Mayor Magee led the meeting in moment of silent prayer. ROLL CALL PRESENT: COUNCILMEMBERS: HICKMAN, KELLEY, ,. MAGEE ABSENT: COUNCILMEMBERS: BUCKLEY, SCHIFFNER (Councilman Buckley arrived at 7:14 p.m.) Also present were: City Manager Brady, City Attorney Leibold, Administrative Services Director Pressey, Community Services Director Sapp, Lake & Aquatic Resources Director Kilroy, Engineering Manager Seumalo, Information/Communications Manager Dennis, Parks & Open Space. Manager Fazzio, Planning Manager Preisendanz, Public Works Manager Payne, Recreation & Tourism Manager Fazzio, City Treasurer Weber'and ;. u Agenda Item No. \ c.. Page L or-' ~ (\ (\ (\ Page Three - City Council Minutes - June 14,2005 Deputy Clerk Ray. PRESENTATION/CEREMONIALS A 'Presentation:"" Riverside County Transportation Commission. The presentation by RCTC was postponed to a date uncertain. It was substituted by the Chamber of Commerce. Update presented by Thomas Grady. Mr. Grady reported upcoming Chamber events. He congratulated the students of the year. He ' noted the EDC Luncheon was scheduled to be held June 16th at the Diamond Club.' B. Proclamation - Eagle Scout Robert Sandberg. . . Mayor Magee called Eagle Scout Robert Sandberg forward for presentation. He read the proclamation and congratulated Mr. Sandberg on this achievement. Mr. Sandberg thanked the Mayor and City Council for this acknowledgement; and for the use of the Cultural Center in which he held his honor court. He also thanked Lake & Aquatic Resources Director ~~ . . C. Proclamation ~ Amateur Radio Week. Mayor Magee called Don Foster forward for presentation. He read the proclamation and commended Mr. Foster and others involved with amateur radio on their dedicated volunteer services. Mr. Foster thanked the Mayor and City Council for the proclamation. .He noted the importance of volunteers for this service. He also commented on how vitally important .this service was in the event of a disaster. D. Proclamation - Teacher Appreciation Week. Councilman Hickman called forward LEUSD Teacher of the Year Curt Nichols to accept the proclamation on behalf of all the teachers. He read the proclamation and commended all teachers for the work that they do. Mr. Curt Nichols thanked the Mayor and City Council for the proclamation. He , Agenda Item NO.~ Page 3 orB Page Four - City Council Minutes- June 14, 2005 u noted that teachers were the link to the future and past. . . As part of this presentation Councilman Hickman also recognized Rick Wolter, Donna Wolter, and Diana Boggs for the work that they do as teachers, but also for volunteering their time to coach basketball at Elsinore High School. Proclamation,.,- International Club. E. Mayor Magee called forward members oftheInternational Club. He commended the members of this club for their efforts to improve. their knowledge of the English language. He read and presented the proclamation to club member Elsa Sanchez, Ms. Sanchez. thanked the Mayor and City Council for the proclamation. She gave some history on the International Club. She requested that the community support the club. She requested assistance in advertising the club. She thanked the Mayor for the new roads in.her neighborhood. She suggested that anyone who was interested in being U a club member 01: would like to volunteertheir time to call 490-7385. Mayor Magee thanked Ms. Sanchez for her appreciation on the road . I improvements, but noted that it was an effort of the full Council. F. Certificate of Appreciation - International Club Volunteer Teachers. Mayor Magee acknowledged the volunteer, services of the teachers. . He presented the teachers with Certificates of Appreciation. G Certificate of Appreciation - Memorial Dav Sponsor's: Mayor Magee called forward the sponsor's of the Memorial Day Event. He presented a proclamation to Greg Hamilton of the Elks Lodge. He presented Certificates of Appreciation to 1 st Assembly of God,; YFW Post 1508, and American Legion #200. Representatives of the organizations each thanked the Mayor and City Council for the recognition. '. Agenda Item No. \-c:. Page t.-\ of \.-=t -- U n n (\ Page Five - City Council Minutes - June 14,2005' H. Certificate of Achievement Information/Communications Manager Dennis assisted Mayor Magee in honoring these recipients. Mr. Dennis gave some background on the Korn Scholarship. The Mayor presented the Certificates of Achievement to the recipients. The recipients thanked the Mayor and City Council for this recognition. I. Presentation - Vicki Kasad. Mayor Magee called forward Vicki Kasad. He commented that Vicki had been the CitY Clerk for the .City for 18:years as well as the Human Resources Director. :He noted the number of Council members thathad passed through Vicki's door.. He commented that Vicki would be missed. He presented Vicki with aplaque and Key to the City. . J. Presentation - General Plan - Moonev. Jones & Stokes:.: Mr. Mooney gave an overview of the presentation' and update. He gave a definition of the General Plan. He noted legal implications and land use elements. He noted the amount of vacant land in the City. He also noted safety in regards to the General Plan. He indicated that their approach was community based. He indicated that community involvement was one of the key elements. He also discussed the historic value of the City. CLOSED SESSION REPORT , . City Attorney Leibold reported that all matters Ji.sted for Closed Session had been discussed with no reportable action. . .' ' PUBLIC COMMENTS - NON-AGENDIZED ITEMS- 1 MINUTE Barbara Anderson, Friends of Lake Elsinore Library, announced upcoming library events. Agenda Item No. \ c page~Of-P Page Six - City Council Minutes- June 14, 2005 u Donna Franson, 7 Villa VaItilena, commented on the General Plan Workshop. She' suggested all residents attend the workshops. THE REGULAR CITY COUNCIL MEETING WAS RECESSED AT 8:10 P.M.' I, . THE REGULAR CITY COUNCIL MEETING WAS RECONVENED AT 8:14 P.M. CONSENT CALENDAR ITEMS MOVED BY BUCKLEY, SECONDED BY KELLEY AND CARRIED BY A VOTKOF 4-0 WITH COUNCILMEMBER SCHIFFNER ABSENT TO' APPROVE THE CONSENTCALLENDAR AS PRESENTED, WITH THE MINUTES CORRECTEDAS NOTED INTH~ EARLIER STUDY SESSION. 1. The following Mjnutes were approved: u a. Joint City Council/RedevelopmentAgencyStudy Session - May 10, 2005. .'. b. RegularCity:Council Meeting - May 10,2005 2. ,'" Ratified Warrant List fOf May 31, 2005. .~ " 3. Approved Final Map No. 31706-3, a residential subdivision by Pardee Homes, located north of Canyon HillsRoad and east of RailroadCanyon Road in the Cottonwood Canyon Specific Plan. 4. Approved Final Map No. 31706~4, a residential subdivision by Pardee Homes, located north of Canyon Hills Road and east of Railroad Canyon Road in the Cottonwood Canyon.Specific Plan. :_:' . n 5. Approved Fee.Deposit and Reimbursement Agreement with EVMWD and Castle and Cooke Alberhill Ranch, LLC. 6. Authorized an Agreement with HTE, Inc. Contract No. LKEL-20050212 u Agenda Item NO.~ page~of-a n Page Seven - City Council Minutes ~ June 14,2005 and Contract No. 20050511' Supplemental Agreement for NavfilineSelect, QRep and DMS software. 7. Authorized City Manager to sigh application and City Clerk to execute the . document. 8. Approved an,Agreement with T.GA. Development & Engineering, Inc to provide Plan Check Services to the EngineeringDivision. 9. Approved Final Map No. 30395, an'Industrial Complex located west Of Pasadena Street and north of Third Street. 10. Approved Resolution No. 2005-48 prohibiting parking on the east side of Grandview Avenue from Half Moon Drive south to the end and on both sides of Skylark Drive from Palomar Court north to the end of the pavement. (""\ U. Approved Improvement Reimbursement Agreement Parcel Map 30187, for the design and construction ofthe Master Planned Storm Drain facility on Chaney Street in vicinity of Flint Street. 12. Approved Improvement, Reimbursement, and Cooperation Agreement for construction of "Hunco Way" Storm Drain. 13. Authorized the use of$2,500 of un allocated revenues for sponsorship of the 'Temescal Canyon High School Grad Night. PUBLIC HEARINGS 21. A Resolution ofthe City Council of the City of Lake Elsinore to Vacate a portion 3rd Street east of Collier Avenue for the construction of a Water and Sewer Pump Station. ' , (' City Attorney Leibold gave an overview of the item: She referred to the staff report and indicated that on April 21st, EVMWD adopted a Resolution of Necessity. She'noted staffrecoInmendation to the City Council. Agenda Item NO.~ page~,Ofa Page Eight - City Council Minutes - June 14,2005 u Mayor Mage~opened the public hearing at:8:l5 p.rn. John O'Doherty, 19025 Grovewood Drive, Corona, commented that construction was ongoing and he had not been approached by the City. He indicated that it was the responsibility of the Council to protect the citizens. Cheryl Kirkpatrick noted thatemil)entdomain proceedings were taken by EVMWD and shewould be filing an objection for her client.; Mayqr Magee closed the public hearing at 8:20 p.rn. MOVED BY KELLEY, SECONDED BY HICKMAN AND CARRIED BY A VOTE OF 4-0. WITH COUNCILMEMBER SCHIFFNER ABSENT TO ABANDON THE VACATION PROCEEDINGS. . . Councilman Buckley questioned if Council should continue the item to the next Council meeting to receive more information on the item before U abandoning it. City Attorney Leibold reiterated staffs recommendation. THE FOREGOING MOTION CARRIED BY A VOTE OF 4-0. . BUSINESS ITEMS 31. 2005 4th of Julv Celebration. City Manager Brady gave an overview of the item. He noted the numerous complaints received from the public regarding the decision to not offer the fireworks show on the 4th. He indicated that the J\1ayor had requested the item back on the agenda for reconsideration. Chris Hyland, Lake Elsinore, commented that she was in support of the event and urged the Council to move forward with the celebration. She indicated that it brought a lot of people into Lake Elsinore, which benefited the local businesses. U Agenda Item No.k Page 6' of \ ~ (\ Page Nine -City Council Minutes - June 14, 2005 Councilwoman Kelley commented on the numerous emails she had received in support of the event. She indicated that she would be happy to endorse . the event. She questioned parking and conflict with the Storm Fireworks show. Community Services Director Sapp indicated thathe had met with the Storm and had they had come to an agreement. He noted that Pyro Spectaculars had done the show last year. He indicated that the Boat Parade . was moving forward. Councilman Buckley questioned When the show would start. Mr. Sapp indicated that the show would start at 9:30 p.m. .. MOVED BY BUCKLEY, SECONDED BY KELLEY AND CARRIED BY A VOTE OF 4-0 WITH COUNCILMEMBER SCHIFFNER ABSENT TO APPROVE THE JULY 4TH FIREWORKS SHOW AND AUTHORIZE STAFF TO ENTER INTO AN AGREEMENT WITH PYRO SPECTACULARS IN THE AMOUNT OF $20,000 TO FUND THE EVENT. (\ Councilman Hickman indicated that he had always supported the item along with Councilman Buckley . Mayor Magee thanked staff for getting the.item back before Council. THE FOREGOING MOTION CARRIED BY A VOTE OF 4-0. 32. Resolution ofIntention to establish Community Facilities District No. 2005- 5 (Villages at Wasson Canvon). . Administrative Services Director Pressey indicated that staff would like to . continue the item until the June 28th meeting. MOVED BY KELLEY, SECONDED BY BUCKLEY AND CARRIED BY A VOTE OF 4-0 WITH COUNCILMEMBER SCHIFFNER ABSENT TO · CONTINUE THE ITEM UNTIL JUNE 28TH CITY COUNCIL MEETING (\ 33. Potential Site for Bovs and Girls Club. Agenda Item No.k pag40fll . I il Page Ten - City Council Minutes - June 14,2005 u CouncilwomaI},Kelley indicated that she woulcilike to continue the,item for ,two weeks. She indicated that additional information was needed and she , ,would go out and get that requested information. She indicated that she , would bring back an option site, business plan and speakers to respond to questions that the City Council might have. Leonard Lykness, Lake Elsinore commented that he was eX,cited about the possibility of the Boys and Girls Club coming to Lake Elsinore. He offered, to volunteer his services. He indicated that it ranked in the top few, ' organizations in the country. ,He noted some of the services and, '. .' opportunities offered by the Boys and Girls Club. He encouraged the City to , move forward. ' Councilman Buckley noted that the site was near a 20 acre piece of property that had recently sold for $4 million. ,He suggested scheduling a Study , Session in July. MOVED BY BUCKLEY, SECONDED BY HICKMAN AND CARRIED BY A VOTE OF 4-0 WITH COUNCILMEMBER SCHIFFNER ABSENT TO SET A STUDY SESSION IN JULY, DIRECT THE CITY ATTORNEY TO GET A LEGAL OPINION ON PROPERTY DONATIONS, AND AUTHORIZE THE FUNDS FOR APPRAISAL AND REQUEST THAT THE BOYS AND GIRLS CLUB AND THE FEASIBILITY COMMITTEE DESIGNATE A , POTENTIAL OPTIONAL SITE AND CREATE A BUSINESS PLAN AND A PRESENTATION FOR THE STUDY SESSION. u Mayor Magee indicated that he was concerned with taking time and spending the money on something the Council could designate to help the children in our valley. He indicated that Supervisor Buster had taken,a look at this particular property for a homeless shelter and passed, because he did view it as being feasible and wanted the City to improve on somethings before they would look at it. He indicated that he felt the Council would be ' accommodating the Boys and Girls Club by earmarking the site. He indicated that he would not stand in the way of the motion, but he did not understand all the road blocks. u Agenda Item NO.~ Page1Qof \=1- (\ Page Eleven - City Council Minutes - June 14, 2005 Councilman Hickman commented that he had the Boys and Girls Club " approach the City two years ago and they received no response and no one was interested. He'indicated that he would prefer the study session'to ensure , that it was done correctly. THE FOREGOING MOTION CARRIED BY A VOTE OF 4-0. 34, Personnel Recruitment and Reorganization. (\ City Manager Brady gave an overview of the item. He indicated that the recruitment for the City Engineer position had already been initiated. He ilJdicated that for the City Clerk position that the Council might want to create a subcommittee made up of two Councilmembers to work with the recruiter. He indicated that the Council would need to establish a compensation package for the City Clerk position. He indicated that the recruiter had provided in the staff report job descriptions for the position. He indicated that the Human Resources function be placed under the' _ Administrative Services Department. He further indicated that staff was recommending that a senior level analyst position be hired for the Human Resources furiction; the recommendation also included raising the pay and modifying an existing position from Payroll Specialist to Management Analyst. He noted that the individual currently in this position handled a number of functions related to personnel. He noted that the requirements and responsibilities for.this position would increase, so staff was recommending that the grade level be raised. 'City Manager Brady' indicated that staff was recommending a Part-time Office Specialist positiori which would assist with Human Resources and other functions in the Administrative Services Department. He noted that the Administrative Services Department was the only department that did riot have a specific clerical person identified. He noted the cost to the City , for the positions. ' n Edith Stafford, Lake Elsinore, commented that a lot of reorganization needed to be done. She indicated that she had been made aware that there was conflict among employees and the Interim City Manager for fear of being Agenda Item No.lL Page.lL of \ -=1- Page Twelve - City Council Minutes - June 14, 2005 . u terminated from their position under duress working conditions. She indicated that some employees had signed a petition to retain the Interim . City Manager as permanent City Manager against their desire and will. She indicated that employees were walking on egg shells. She indicated that she did not know who the employees were. She suggested that any employee should contact her for help and protection for wrongful termination. She indicated that certain Councilmembers were aware of misuse of credit cards and other issues, but refused to do anything. She indicated that the Junteenth Celebration had recently taken place, which represented the freedom from slavery. City Treasurer Weber noted that there would be an $84,000 increase and the City could not afford it.. Councilwoman Kelley suggested establishing the subcommittee as proposed . and have the subcommittee direct staff to prepare a revised job description as recommend, and have the subcommittee review the different positions U and advancement that had been proposed and come back to the Council. Councilman Buckley concurred with Councilwoman Kelley. He indicated that he fully support the splitting of the position. He questioned the need for . the Part-time Office Specialist. , , Councilman Hickman indicated that he would volunteer for the subcommittee. MOVED BY KELLEY, SECONDED BY HICKMAN AND CARRIED WITH A VOTE OF 4-0 WITH COUNCILMEMBERSCHIFFNERABSENTTO ESTABLISH A SUBCOMMITTEE OF COUNCILWOMAN KELLEY AND COUNCILMAN HICKMAN TO REVIEW THE CITY CLERK POSITION AND SALARY AND BENEFITS AND BRING BACK TO THE COUNCIL SOME DIFFERENT SCENARIOS FOR THE COUNCIL TO CHOOSE IN ADDITION TO HUMAN RESOURCES. I ." Agenda Item NO.\C Pagel 2. orll u n Page Thirteen - City Council Minutes - June 14,2005 35. . General Fund and LLMD Operating Budget for Fiscal Year (FY) 2005-06 and Capital Improvement Proiects (CIP) Budget for FY 2005-06 through 2009-10. . . , ", . Administrative Services Director Pressey commented that he was pleased to present Council witha balanced budget for FY 2005-06. Heindicated that the Fire Departmenthad the largest increase and the Police Department would be adding three additional shifts to the service. He noted that there had been three Study Sessions on the budget. He indicated that the budget was projected through 2010. He indicated that the projections were worse case scenario projections. He 'indicated that the City was working withthe" County to discuss cost sharing. (\ City Treasurer Weber referred to charts in which he had created. The charts showed graphs for revenues and expenditures. He indicated that the budget was balanced, but only because the. City was not allocating $3.5 million to build the Rosetta Canyon Fire Station. He indicated that the responsibility of safety was being delayed to ensure a balanced budget. . Councilman Buckley indicated that he had never voted for a budget before; but he might be voting for this budget He indicated that he was concerned about the future. He indicated that when the Stadium was sold the City' would be saving $800,000 annually. Councilman Hickman concurred with the comri1ents made by City Treasurer' Weber. He expressed his concerns for growing the community for the safety of the citizens. . MOVED.BY HICKMAN, SECONDED BY KELLEY AND CARRIED WITH A VOTE OF 4-0 WITH COUNGILMEMBER SCHIFFNER ABSENT TO . ADOPT THE PROPOSED GENERAL FUND AND LLMD OPERATING. BUDGET FOR FISCAL YEAR 2005-06 AND THE 5 YEAR CIP BUDGET FOR FISCAL YEARS 2005-06 THROUGH 2009-10. . n Councilwoman Kelley indicated that staff and Council had always been conservative with the budget. Agenda Item No.~ pageL3-ofll Page Fourteen - City Council Minutes - June 14, 2005 u . . Mayor Magee indicated that revenue was up and the budget was balanced for the second straight year. He indicated that for the third straight year the City was putting more deputies on the streets. He indicated that the Canyon Hills Fire Station would be opening next Monday and it was fully funded. He noted the adding of staff to the Community Services and Community Development Departments. He also noted the funds to improve the boat launch at the campground and funds for the Lincoln Street Park. He noted the pavement overlay. He noted the interchange enhancements of Grand Avenue and Ortega Highway. ' , THE FORGOING MOTION CARRIED WITH A VOTE OF 4-0. THE REGULAR CITY COUNCIL MEETING WAS RECESSED AT 9:01 P.M. THE REGULAR CITY COUNCIL MEETING RECONVENED AT 9:14 P.M. PUBLIC COMMENTS - NON-AGENDIZED ITEMS -3 MINUTES' u Andrew Pigeot, 16348 Stevens Street, commented that there was a manufactured home at 16350 Stevens Street that had been under construction for more than eight months. He indicated that the builder attempted to put in a septic tank and during the rain and the pit they had created became a mosquito infested swamp until it was pumped several months later. He indicated that the neighbors were concerned if the codes had been enforced properly for that property and if the proper permits had been issued.' Mayor Magee directed Mr. Pigeot to City Engineer Seumalo. He requested that the information be given to Mr. Seumalo and a staff member would follow up. He advised Mr. Pigeot to contact him ifhe had not received a response back from City staff. . Paula Graver, Lake Elsinore, commented that she had attended a 10 state, 1 0 day support of the troops rally. She noted that every town they entered lined the streets and overpasses with people and signs to greet them, giving them a home coming they should have received 30 years ago. U Agenda Item NO.lC..- Page 14 of , .~ (\ Page Fifteen - City Council Minutes - June 14, 2005 Edith Stafford, Lake Elsinore, comnientedon a comment made by Mayor Magee in a recent newspaper article. She indicated that the Mayor was not strong enough to make the necessary cuts in the budget the City needed to make now to ensure the safety of citizens. She indicated that the budget was balanced, but not because of responsible fiscal planning. She suggested ,that the Mayor listened to the opinions made by the City Treasurer. She noted that he had not been wrong yet. CITY MANAGER COMMENTS City Manager Brady commented oil the following: 1) He commented on the golf tournament and congratulated the individuals that participated. . '. . CITY ATTORNEY COMMENTS n City Attorney commented on the following: ('. I) She wished Ken success in his new position. COMMITTEE REPORTS None. ,. CITY TREASURER COMMENTS City Treasurer Weber commented on the. following: 1) . He commended Ken for not taking the Health & Wellness. He indicated that he would be missed. CITY COUNCIL COMMENTS. Councilwoman Kelley commented on the following: 1). She congratulatedXen and wished him.well. Agenda Item No.L Page l.s;-of \ '=1- Page Sixteen - City Council Minutes - June 14,2005 u .. 2) She congratulated all the graduates in the valley. Councilman Hickman commented on the following: 1) He congratulated Mr. Seumalo. Councilman Buckley commented on the following: 1) He congratulated Mr. Seumalo. . ~;.. .' 2) He recommended that citizens attend the General Plan Advisory Committee public vision session that would be held at the Diamond Stadium at 10 a.m., June 19th. 3) He commented that the finalist for the City Manager position would be available after the meeting for the public to meet. . , '., u Mayor Magee commented on the following: 1) He congratulated Mr. Seumalo. 2) He commended the Lake & Aquatic Resources Department for applying to FEMA to take care of some of the repair work from the damage created by the winter rains. He indicated that the funds were starting to come in. 3) He thanked staff for organizing a meeting with himself, CalTrans and the electives from Canyon Lake. He indicated that they were working . with CalTrans to expedite the improvements at Railroad Canyon Road and Interstate 15, and Interstate 15 and Highway 74. 4) He commended Police Chief Fetherolf and his department for the. drug sweep on Riverside Drive and Main Street. He indicated that seven perpetrators were placed behind bars. 5) He commended Administrative Services Director Pressey and his staff Agenda Item NO.~ pag'Morn u n (\ (\ Page Seventeen - City Council Minutes - June 14,2005 on the budget. 6) He recognized the efforts of County Supervisor Stone. He indicated that he was working on the adoption oflegislation that would allow for a local television channel to locate and broadcast through Elsinore Valley, Murrieta, and Temecula and to the San Jacinto Valley. He had included representatives from each one of the cities listed. He noted that he would be representing Lake Elsinore and looked forward to serving on the committee. 7) He requested that home viewers contactthe City regarding the volume of the broadcast of Council Meeting. 8) He commented that Elsinore High School and Temescal Canyon High School would be holding their graduation Thursday, June 16th at Diamond Stadium. ADJOURNMENT The Regular City Council Meeting was adjourned at 9:27 p.m. ROBERT E. MAGEE, MAYOR CITY OF LAKE ELSINORE ATTEST: FREDERICK RAY, DEPUTY CITY CLERK CITY OF LAKE ELSINORE Agenda Item NO.--.lL PageJ2rof~ u .'.'1- '" u u (\ 7/612005 WARRANT 063005 1011 ACENDA ITEM NO. ~ PAa~OF_ ~ ~ JUNE 30, 2005 CITY OF LAKE ELSINORE W ARRANT LIST CHECK# VENDOR NAME AMOUNT 82067 LAKE ELSINORE VALLEY CHAMBER OF COMMERCE 82226 PYRO SPECTACULARS, INC. 82227 BREAD OF LIFE FELLOWSHIP 82228 '-C. M.A. RETIREMENT TRUST 82229 CALIFORNIA P.E.R.S. 82230 AL TURA CREDIT UNION 82231 HOME DEPOT 82232 TEMESCAL CANYON HIGH SCHOOL GRAD NIGHT 82233 MOIRA STERN 82234 COUNTY OF RIVERSIDE COMMUNITY HEALTH AGENCY 82235 JACKIE SANDERSON 82236 UNION BANK OF CALIFORNIA 82238 VOID 82239-82240 A & A JANITORIAL SERVICE 82241 ALL PHASE REFRIGERATION & AIR CONDITIONING, INC. 82242 ALLIED TRAFFIC EQUIPMENT 82243 ALLSTATE POLICE EQUIPMENT CO. 82244 AL TURA CREDIT UNION 82245 APPLE ONE EMPLOYMENT SERVICES 82246 ARAMARK 82247 DONALD ASH 82248 BELSON OUTDOORS, INC. 82249 BID-TOX LABORATORIES 82250 ANTHONY BIRABENT 82251 CYNTHIA BLOOD-WILSON 82252 BPS TACTICAL, INC. 82253 BUNDY CANYON TURF SUPPLY 82254 CALIFORNIA BUILDING OFFICIALS 82255 CALIFORNIA JPIA 82256 CALIFORNIA P.E.R.S. 82257 STATE OF CALIFORNIA DEPARTMENT OF JUSTICE 82258 CAPIO 82259 CENTEX HOMES, SOUTHERN CALIFORNIA DIVISION 82260 CENTRAL SECURITY SERVICES, INC. 82261 CITICORP VENDOR FINANCE,INC. 82262 CITY & COUNTY SOIL ENGINEERING, INC. 82263 CNH CAPITAL AMERICA, L.L.C. 82264 CONSOLIDATED PLASTICS COMPANY, INC. 82265 COOK EQUIPMENT OF ORANGE, INC. 82266 KIRT A. COURY 82267 CAL CROSBY 82268 BRAD CURTIS 82269 CUTTING EDGE STAFFING, INC. 82270 D & SELECTRIC 82271 SALLIE DAVIS 82272 DENINE DIAZ 82273 DO IT CENTER 82274 CAROLE K. DONAHOE, AICP 82275-82281 EV.M.w .D. 82282 ELlE FARAH, INC. 82283 ELITE ELEVATOR, INC. 82284 . ELSINORE ELECTRICAL SUPPLY,INC. 150.00 10,000.00 10,000.00 4,020.00 27,172.14 925.00 3,215.20 2,500.00 265.00 788.00 367.50 29,694.59 0.00 3,162.50 803.50 161.63 2,710.99 925.00 2,294.44 630.05 15.66 6,495.00 456.24 195.00 107.50 466.86 829.68 215.00 332,881.00 27,542.44 385.00 175.00 250.00 117.00 770.41 7,358.79 3,251.42 377.06 89.15 5,038.28 240.00 400.00 5,791.47 3,805.00 100.00 400.00 100.62 . 3,039.86 36,606.38 2,594.00 312.00 146.34 7/6/2005 WARRANT 063005 1 OF4 . ACENDA ITEM ~jv. PAOE'1. u u u :J Of c:; JUNE 30, 2005 CITY OF LAKE ELSINORE W ARRANT LIST (\ CHECK# VENDOR NAME AMOUNT 82285-82287 ELSINORE PIONEER LUMBER CO. 82288 ELSINORE VALLEY RENTALS 82289 ELSINORE VALLEY SELF STORAGE 82290 EMPIRE ECONOMICS, INC. 82291 CHRIS ERICKSON 82292.:a2293 EXCEL LANDSCAPE. INC. 82294 EXECUTIVE EVENT SERVICES.L.L.C. 82295 FEDERAL EXPRESS CORPORATION 82296 K. HOVNANIAN FORECAST HOMES, INC. 82297 MAUREEN FOSTER DAVIS 82298 GOLF VENTURES WEST 82299 MARIA GOMEZ 82300-82303 GREENSCAPE LANDSCAPE. INC. 82304 . ARLINE GULBRANSEN 82305 LORENA HANCOCK 82306 HARRIS & ASSOCIATES. INC. 82307 HAULAWAY STORAGE CONTAINERS, INC. 82308 TIME HODGES 82309 GARY HOFFARTH . 82310 HOME DEPOT 82311 I.C.M.A. RETIREMENT TRUST 82312 INLAND EMPIRE LOCK & KEY 82313 INTER-BLOCK RETAINING SYSTEMS. INC. 82314 JOBS AVAILABLE, INC. . (\ 82315 JOURNEY ELECTRICAL TECHNOLOGIES 82316 STEVE KARVELOT 82317 KB HOME COASTAL, INC. 82318 KIRSTEN KING 82319 KUSTOM SIGNALS 82320 LAKE CHEVROLET 82321 LAKE ELSINORE FORD 82322 LAKE ELSINORE HISTORICAL SOCIETY 82323 LAKE ELSINORE MATERIALS 82324 LAKE LAND MARINE 82325 . LIBRARY SYSTEMS & SERVICES, L.L.C. 82326 LONGTIN'S AUTO SUPPLY 82327 CHARLES MACKEY JR. 82328 KIM MAGEE 82329 THE MARK FISHER COMPANY 82330 MARY MARQUEZ 82331 MCMASTER-CARR 82332 MEI RESEARCH CORP. 82333 GARY MELTON 82334 LINDA M. MILLER 82335 MOBILE SATELLITE VENTURES. L.P. 82336 DOUG MONTE 82337 MORROW PLUMBING, INC. 82338 NBS GOVERNMENT FINANCE GROUP 82339 NELSON PAVING, INC. 82340 NETCOMP TECHNOLOGIES. INC. r"'\ 82341 NEXTEL COMMUNICATIONS ( \ . 82342 NORTH COUNTY TIMES 1,408.76 724.65 77.00 3,750.00 100.00 17,804.57 12,057.50 159.39 100.00 519.94 303.46 340.00 16,249.00 238.19 . 2.829.00 30.600.00 216.00 240.00 . 100.00 180.00 4.020.00. 285.44 1,408.35 . 346.80 121.26 157.50 11.557.00 258.75 6,837.52 105.88 521.26 108.00 193.95 51.61 171.70 37.58 3.759.00 649.11 560.00 400.00 408.32 632.51 96.98 4.000.00 73.39 120.00 239.44 10,587.34 13,927.45 6,649.96 1.464.37 334.00 . 7/612005 WARRANT 063005 20F4 ACENDA ITI:." ..;. ~ PAGE 3 Of'-r; JUNE 30. 2005 CITY OF LAKE ELSINORE CHECK# VENDOR NAME WARRANT LIST AMOUNT u 82343 OAK GROVE EQUITIES 82344 ORANGE COUNTY STRIPING, INC. 82345 SAMANTHA ORDUNO 82346 P & R PRODUCTIONS 82347 JULIAN CRUZ PEREZ 82348 PETTY CASH 82349 PHD PENSKE LEASING 82350 THE PLANNING CENTER 82351 PREMIUM PALOMAR MT. SPRING WATER 82352 THE PRESS ENTERPRISE 82353 PRODUCTION VIDEO 82354-82355 PRUDENTIAL OVERALL SUPPLY 82356 PUL TE HOMES 82357 QUAID TEMECULA HARLEY DAVIDSON 82358 QUILL CORPORATION 82359 R.H.F., INC. 82360-82361 RAMSEY BACKFLOW & PLUMBING 82362 RANCHO REPROGRAPHICS, INC. 82363. JENIFER E. REINER 82364 REST ROOM WORLD 82365 RIGHTW A Y 82366 COUNTY OF RIVERSIDE TRANSPORTATION AND LAND MANAGEMENT, 82367 COUNTY OF RIVERSIDE OFFICE OF THE AUDITOR-CONTROLLER 82368 COUNTY OF RIVERSIDE ENVIRONMENTAL HEALTH SERVICES 82369 ROBBINS PEST MANAGEMENT, INC. 82370 ROTARY CLUB OF LAKE ELSINORE 82371 VINCENT SCARPINO 82372 TRACI SIGWALT 82373 -----SIMPLOT PARTNERS 82374 SHAWN SLATER 82375 KATHLEEN R. SMITH 82376 MARY SNYDER 82377 DAVID S. SOLOMON 82378-82384 SOUTHERN CALIFORNIA EDISON CO. 82385 SPRINT 82386 STAPLES CREDIT PLAN 82387 STAUFFER'S LAWN EQUIPMENT 82388 PEGGY J. STORAASLI 82389 BOB STOVER, INC. 82390 TEAM AUTOAID, INC. 82391 TEMECULA COPIERS 82392 TEXTRON FINANCIAL CORPORATION' , 82393 TOM DODSON & ASSOCIATES 82394 TOP-LINE INDUSTRIAL, INC. 82395 TWIN GRAPHICS 82396. UNITED INDUSTRIES 82397 UNITED PARCEL SERVICE 82398 VAN BLARCOM, LEIBOLD, MC CLENDON & MANN 82399-82402 VERIZON CALIFORNIA, INC. 82403 WAL-MART COMMUNITY 82404 W AXlE SANITARY SUPPLY 82405 WEST COAST WINDOW CLEANING , , I, 35,787.01 16,669.70 783.95 1,000.00 27.45 406.96 898.22 3,875.42 382.95 7,193.22 450.00 881.04 9,568.00 448.08 345.12 483.18' 10,361.00 104.75 1,275.00 1,025.80. 279.83 , 12,225.00 2,020.00 165.00 210.00 265.00 ' 1,500.00 11.25 506.43 100.00 568.12 240.00 3,120.00 31,383.70 242.01 3,948.73 . 193.69 275.00 7,399.68 5.39 1,577.55. 987.13 5,757.70 479.37 1,613.02 129.74 57.45 35;335.89 3,919.30 260.29 1,240.74 450.00 u u ,I 7/6/2005 WARRANT 063005 30F4 ACENDAITEM NO. ~,.. PAOE--i-.Of C; JUNE 30, 2005 CITY OF LAKE ELSINORE WARRANT LIST (\ CHECK# VENDOR NAME TOTAL AMOUNT 590,441.00 2,176.00 2,596.96 $ 1,502,067.45 55,809.35 112,151.29 $ 1,670,028.09 82406 WESTERN RIVERSIDE COUNCIL OF GOVERNMENTS 82407 WILLDAN 82408 ZONES.COM PIE DATE: 06/24/05 PAYROLL TAXES 06/24/05 PAYROLL CASH GRAND TOTAL n (\ 7/6/2005 WARRANT 063005 4QF4 ACENOA ITEM NO. ~ PAGE .C: OF 5 ; " u u u (\ n n CITY OF LAKE ELSINORE MONTHLY REPORT OF INVESTMENTS APRIL 2005 LOCAL AGENCY INVESTMENT FUNO ==-- ==== ===============- INTEREST RATE 2. 724% DATE MATURITY PURCHASED RATE AMOUNT DAILY $22,862,988.27 24-HOUR =========== --================= INVESTMENT TOTAL $ 22,862,988.27 ===---==========-----=======c=========---- --=========== - AVERAGE ANNUAL RATE........... 1.988% I certify that this report accurately reflects all pooled investments and It is in confonnity with the . investment policy as approved by the City Council on June 22, 2004. A copy of this policy is available in the office of the City Clerk. The pooled investments shown above provide sufficient cash flow liquidity to meet the next six months estimated expenditures. I~ -b/~~S- Date" ' AOENDA ITEM NO. . 3 0. PACE---L-OF I u u u n n n CITY OF LAKE ELSINORE MONTHLY REPORT OF INVESTMENTS May 2005 INTEREST RATE DATE MATURITY PURCHASED RATE LOCAL AGENCY INVESTMENT FUND DAILY 24-H0UR 2.866% ====-=--__==a:=:r--- = ============- -- INVESTMENT TOTAL $ 25,362,988.26 ==- --== - -=========- -...- --~ 'r';"'__ AVERAGE ANNUAL RATE........... 2.108% AMOUNT $25,362,988.28 ---==== - -~ - I certify that this report accurately reflects all pooled investments and It Is In conformity with the Investment polley as approved by the City Council on June 22, 2004. A copy of this polley Is available in the office of the City Clerk. The pooled investments shown above provide sufficient cash flow . liquidity to meet the next six months estimated expenditures. ~r 6//~.>' . Date' ACBDAREM NO. 3h . IWiE-LOF , u u .. ' .. . -->. ."- u (\ [\ (\ CITY OF LAKE ELSINORE REPORT TO THE CITY COUNCIL TO: MAYOR AND CITY COUNCIL FROM: ROBERT A. BRADY, CITY MANAGER , i DATE: JULY 12, 2005 SUBJECT: . POE STREET DRAINAGE AND STREET IMPROVEMENTS BACKGROUND A drainage. problem exists mid-block on Poe Street between Pottery and Flint Streets. Currently, storm waters flood pr9perties on the eastside ofPoe Street, due to a pronounced dip in the 'street. When' the construction of the proposed improvements is completed, the problem will be resolved and drainage will be directed southerly to Pottery Street. DISCUSSION Several homes on the east side ofPoe Street have experienced flooding during the recent rainy season. A dip in the middle of the block has been identified as the cause of the flooding. In order to correct the problem, construction is necessary to eliminate the dip in the road. We anticipate advertising the project in the month of August 2005 and beginning construction mid-September 2005. The project will be completed mid-October 2005, prior to the rainy season. FISCAL IMPACT This is nota funded project. Due to the threat of flooding to these homes during rainy season, repairs to the street will eliminate the potential for flooding and direct water southerly toward Pottery Street. The total cost to prepare plans and specifications, construction, inspection, material testing and project administration is estimated at $80,600. Public Improvements and In~Lieu Fees have been identified as potential sources of funding for this project. ACENDA ITEM NO.~ PACE I OF '2-- REPORT TO CITY COUNCIL JULY 12,2005 PAGE 2 RECOMMENDATION Staff recommends that the City Council: 1. Direct staff to prepare construction contract documents and advertise Poe Street Drainage Improvements for Construction. , . 2. Authorize the use of $80,600 from Public Improvements and In-Lieu Fees for the project. PREP ARED ~Y: APPROVED FOR AGENDA BY: ~/i!A1 David S. Solomon, Associate Civil Engineer i. ,-" ';, ',' -, "11, ',.' "~to ! AGENDA ITEM NO. PAGE L.- Lt OF 2- u u u n (\ n CITY OF LAKE ELSINORE REPORT TO CITY COUNCIL TO: MAYOR AND CITY COUNCIL FROM: BOB BRADY, CITY MANAGER DATE: JULY 12, 2005 SUBJECT: DISPOSAL OF SURPLUS ELECTRONICS AS SCRAP BACKGROUND The electronic devices below are submitted for declaration as surplus equipment to be scrapped because they are no longer working or repairable. Item' Description Serial No. 1. Dell Dimension 4100 CPU BZIZNOl 2. Compaq Deskpro CPU 6037DW49A145 3. Best Power Power Fortress IOC9GXJ ' UPS MO #9910-873 4. Best Power Power Fortress IOE8GYX UPS MO #9910-6614 , 5. AOC 17" color monitor N7GN08F083388 Model7VlrA DISCUSSION Computer and electronic equipment becomes surplus material due to obsolescence, wear, or when cost of repair exceeds value. The Purchasing Officer can arrange for disposal of scrap surplus equipment per section 3.12.035 of the Municipal Code, provided the City Council is notified 30 days in advance of the property to be scrapped. ~"'I'riZ;;:! ftO. S:;, ,Ml:4l I (i,:!, 2.- '...... FISCAL IMPACT None. Scrap surplus proceeds are nominal, or represent the least cost of disposal. RECOMMENDATION Approve disposal of surplus equipment to be scrapped, as listed above. PREPARED BY: MARK DENNIS, INFO./COMMUNICATIONS MANAGER APPROVED FOR AGENDA BY: ~""''''''.''H ,~~.,"..'" ~~J~~~ ~v. "'......0" '? r7-'i,;;;.ti:i! '-- u u u s cO' 2- (\ (\ (\ CITY OF LAKE ELSINORE . REPORT TO CITY COUNCIL TO: MAYOR AND CITY COUNCIL FROM: 'ROBERTA. BRADY, CITY MANAGER DATE: JULY 12, 2005 SUBJECT: RESOLUTION OF INTENTION TO ESTABLISH; . COMMUNITY FACILITIES DlSTRICT'NO. 2005-2 (ALBERHILL RANCH) AND RESOLUTION OF INTENTION TO INCUR BONDED INDEBTEDNESS ' BACKGROUND On January 17,2004, City Council approved the final tract maps for the Alberhill Ranch development. The City's finance team has met with the developer and their . financial consultants to discuss the formation of a Community Facilities District for the project. . , . , . DISCUSSION . ',' .", The developer plans to build 1,181 single family homes and 389 multi-family homes. There are three improvements areas. Special Tax. . " The average residential special tax foriinprovement areas A;Band C is estimated at $3,416, $3,206, and $3,086, respectively. The annual CFD tax amounts, when combined with all other property taxes applicable to the project, are estimated to be . approximately 1.93%, 1.94, and 1.96 for improvement areas 1\, 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, ,OpenSpace, and Sto~ Drains CFD. ,.' . , "', AOENOA ITEM 1\10, C;Z .. _ PACE I OF ~< REPORT TO CITY COUNCIL, JULY 12, 2005 PAGE 2 u Facilities The proposed facilities list is attached. The list totals $77,535,090. The list contains $6,274,010 of City of Lake Elsinore impact fees including MSHCP of$2,36l,004 and developer agreement fees of$1,570,000 and Traffic Impact Fees (TIF) of $1,872,006. The list also includes $40,756,781 of City of Lake Elsinore street, storm drain and park improvements, $1,400,000 of Caltrans improvements, and $29,104,299 ofEVMWD impact fees and improvements. Bond Issue In order to finance the facilities it is necessary to incur bonded indebtedness. The not to exceed amount is $28,000,000, $36,000,000 and $26,000,000 for improvement areas A, Band C, respectively. FISCAL IMPACT, " , ,'- u ". The administrative cost to the City will be paid by the $50,000 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 respective rate and method of apportionment. , ,,' " ,C The City will, however, be faced with a long-term obligation going forward to maintain the City public facilijies constructed as part of the development. . ' PROCESS . '.' The formation of the Mello~RoosC()mmunity Facilities District requires a specific process asoutlil1ed in the attached resolution to establish a ~FD. The City Council will need to hold a public hearing on the formation of the District and for the, approval ofthe bond documents. At the public hearing the participating property owner will have the opportunity to vote. The public hearing can be scheduled for August 23, 2005. u ACENOA \lEM NO. "~GE ~ ltJ OF )? ~ o (\ n REPORT TO CITY COUNCIL JULY 12, 2005 PAGE 3 RECOMMENDATION It is recommended that City Council: 1. Adopt Resolution ofIntentions 2005 - ..k2::.to Establish CFD 2005-2 (Alberhill Ranch) and 2005 - ~ to Incur Bonded Indebtedness 2. Schedule the public hearing on the District Formation for August 23, 2005 PREPARED BY: APPROVED FOR AGENDA BY: . ~~ MATTN. PRE~ DIRECTOR OF ADMINISTRATIVE SERVICES ACENDA ITEM NO. lp PACE 3 ~ EXHIBIT B Proposed City of Lake Elsinore CFD No. 2006-2 (AlberhUl Ranch) Castle & Cooke - AlberhUI Ranch - Tract No.'s 28214 & 30838 Preliminary Proposed Authorized Facilities Ust u Per Unit PerUnlt City of Lake Elsinore - Impact Fees .J'!!!'1,... (SfD) Total Cost Library Capital IrTlJI'ovement Plan Fee 150 150 $235,500 Traffic Irrpad Fee (a) . 902 1,288 1,872,006 Fire Mitigation Fee 150 150 235,500 MSHCP Fee (b) 1,057 1,651 2,361,004 Development Agreement Fee (DAG Fee) (for capital facilities) (c) 1,000 .1,CMXI 1,570,000 Subtotal $3,259 $4,23. $8,274,010 City of Lake Elsinore - Improvements Mountain Street Improvements [Q) [J([)VU $290,493 1,500,000 10,000,000 1,108,360 1,340,924 1,530,754 1,194,378 5,124,735 3,1n,536 7,095,828 428,511 762,447 2,730,063 U 895,728 829,927 208,035 2,539,061 $40,758,781 1,400,(0) 51,400,000 $9,523,530 7,465,350 6,324,021 5,083,003 16,970 194,350 775,035 593,290 128,750 $29,104,299 ST1,I535,090 Regional Park Improvements Regiona.1 Park Land Phase 1 Irrprovemerts (including applicable storm ~ain irrp'"ovements) lake St., North of Nichols - Curve Alignment Lake St., Temescal Ojn. Rd., 1-15 Rarrps, Lake st. widening. Temescal Rd. . 1-15 Fwy. Lake st. & Collector A lntesection Phase 2 Irrprovements (including applicable Storm ~ain irrp'"ovements) Lake st. Curves LakeSL, Nichols to Mountain Nichols Rd. (LakeSL to Terra Cotta) Nichols Rei from Terra Cotta to CoHier including new bridge Nichols Rd. North and South Bound Ramps wI Traffic Signals Terra Cotta Rei at Nichols Rd. Phase 3 lrrprovements (irx:h..ding applicable Storm ~ain irrp'"ovements) Lake st. fromTemescalCyn. to Nichols Rd Nichols Rei - Taz West Boundary to Tai East Boundary . Collector "A" and Nichols signal- CollierlNichols: irrprovements "A" St. of 30836 & Nichols signal Collector "A" street. Tract 28214 Subtotal Caltrans - Improvements 1-15 RarTlfYappurtenant improvements SUbtotal Elsinore Valley Municipal Water District -Impact Fees and improvements Water Irr-.:ect Fees ($5,429 per unit) (fee credit to be determined) Sewer Impact Fees ($4,755 per unit) (fee credit to be determined) Water Tanking and Pumping Facilities Offsite Sewer Facilities Mountain Street Water Irrvovements Lake Street Water Improvements Nichols Rd. Water Improvements Collector "An \/Vater and Sewer Irrflrovements Terra Cotta Rd. water and Sewer Improvements Subtotal Total Fodr>oles' (;I) PoIentieIF..eredl,tobe<kllermlned. (b) MSHCPOF $1,621 pet unIl epplles il' density is lees then 8 per acre,$1.Q57p.unil..pplesifcten.i:yl.~erlhan8p...."".. (e) OewIapmenl AIJI"eeml!!nl Feelnaeases byS250....., 3rd anmersary oflhe date of the Irst buldng perniL u AQENDA ITEM NO. PAOE 'I c~ OF ..; (\ .. ~ .. 1: 0 ~ .~ n' K~ S2' . 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Islih il fll'6 ~lD.Q B"l! ~ -- ~1lI . ;f. bS!2C.i:~ l ~~~i ~ Ha8~ mli - ~~ ~! -5 ~~&S; ~~ _I ~:g~ .i ~M~'6~ 02- w li- ~ . ~"l::-I. ~~ ~ 8~ jO! :c Kl~~ ~ o~ ~ s-2 s-'8. 't> -g~ EO 1;i:O;- b b.A- 5." i! ~d., ~i ~ ~~ ~ii ~.e e 2.:s.e S AGENDA ITEM NO. PACE 7 UJ OF ~~ BOND SOLUTION U Community Facilities District 2005~2 2005 Series A Period Propose4 Proposed TotalAdj Revenue Unused Debt Serv Ending Principal . Debt Service Debt Service Constraints Revenues Coverage 09/01/2006 1,205,978 1,205,978 (1,205,978) 09/01/2007 20,000 1,415,988 1,415,988 1,559,000 143,013 110.09984% , 09/01/2008 50,000 1,444,988 1,444,988 1,591,000 146,013 110.10476% 09/01/2009 80,000 1,472,488 1,472,488 1,622,000 149,513 IIO.15374% 09/01/2010 115,000 1,503,488 1,503,488 1,655,000 151,513 110.07740% 09/01/2011 150,000 1,532,738 1,532,738 1,688,000 155,263 110.12975% 09/01/2012 185,000 1,560,238 1,560,238 1,722,000 161,763 110.36781% 09/01/2013 230,000 1,595,988 1,595,988 1,756,000 160,013 110.02592% 09/01/2014 270,000 1,624,488 1,624,488 1,791,000 166,513 110.25016% 09/01/2015 315,000 1,655,988 1,655,988 1,827,000 171,013 110.32692% 09/01/2016 365,000 1,690,238 1,690,238 1,864,000 173,763 110.28036% . 09/01/2017 420,000 1,726,988 1,726,988 1,901,000 174,013 110.07607% 09/01/2018 475,000 1,760,988 1,760,988 1,939,000 178,013 110.10867% 09/01/2019 535,000 1,797,238 . 1,797,238 1,978,000 180,763 110.05780% 09/01/2020 595,000 1,830,488 1,830,488 2,017,000 186,513 110.18923% 09/01/2021 660,000 1,865,738 1,865,738 2,058,000 192,263 110.30491% 09/01/2022 735,000 1,907,738 1,907,738 2,099,000 . 191,263 110.02562% 09/01/2023 810,000 1,945,988 1,945,988 2,141,000 195,013 110.02126% 09/01/2024 890,000 1,983,463 1,983,463 2,184,000 200,538 110.11048% 09/01/2025 975,000 2,021,738 2,021,738 2,227,000 205,263 110.15278% 09/01/2026 1,065,000 2,060,550 2,060,550 2,272,000 211,450 110.26182% 09/01/2027 1,165,000 2,104,638 2,104,638 2,317,000 212,363 110.09022% 09/01/2028 1,270,000 2;148,475 2,148,475 2,364,000 215,525 110.03153% 09/01/2029 1,375,000 2,186,800 2,1 86,8QO 2,411,000 224,200 110.25242% U 09/01/2030 1,495,000 2,231,175 2,231,175 2,459,000 227,825 110.21099% 09/01/2031 1,625,000 2,278,950 2,278,950 2,508,000 229,050 110.05068% 09/01/2032 1,760,000 2,324,575 2,324,575 2,559,000 234,425 110.08464% 09/01/2033 1,900,000 2,367,775 2,367,775 2,610,000 242,225 II 0.23007% 09/01/2034 2,055,000 2,418,275 2,418,275 2,662,000 243,725 . 110.07847% 09/01/2035 2,215,000 2,465,250 2,465,250 . . 2,715,000 249,750 II 0.13082% 09/01/2036' 2,335,000 ' 2,463,425 2,463,425 2,715,000 251,575 110.21241 % 26,135,000 58,592,853 58,592,853 63,211,000 4,618,147 l' , u JuI5.2005 10:35 am Prepared by Rod Guno Associates ACENDA ITEM NO, PACE 8 Page 1 (j) OF 51 Z. n BOND SOLUTION Community Facilities District 2005-2 Improvement Area B Period ' Proposed Proposed Total Adj Revenue . Unused Debt Serv Ending' Principal Debt Service , Debt Service Constraints Revenues Coverage 09/01/2006 1,554,071 1,554,071 (1,554,071) 09/0112007 25,000 1,823,925 1,823,925 2,008,000 ' 184,075 110,09225% 09/0112008 60,000 1,857,675 1,857,675 2,048,000 190,325 11024533% 09/0112009 100,000 1,894,675 1,894,675 2,089,000 194,325 I 1025638% 09/0112010 145,000 1,934,675 1,934,675 2,131,000 ' 196,325 110.14770% 09/01/2011 190,000 1,972,425 1,972,425 2,173,000 200,575 110.16895% 09/0]/2012 240,000 2,012,925 2,012,925 2,217,000 , 204,075 110.13823% 09/0112013 290,000 2,050,925 2,050,925 2,261,000 210,075 110.24294% 09/0112014 345,000 2,091,425 2,091,425 2.306,000 214,575 11025975% 09/0112015 405,000 2,134,175 2,134,175 2.353,000 218,825 11025338% 09/0112016 470,000 2,178,925 2,178,925 2,400,000 221,075 110,14606% 09/01/2017 540,000 2,225,425 2,225,425 2,448,000 222,575 110,00146% 09/01/2018 610,000 2,268,425 2,268,425 2,497,000 228,575 llO,Q7637% 09/0112019 685,000 2,312,925 2,312,925 2.547,000 234,075 110.12030% 09/01/2020 765,000 2,358,675 2,358,675 2,598,000 239,325 110.14659% 09/0112021 850,000 2;405,425 2,405,425 2,649,000 243,575 110.12607% 09/0112022 940,000 2,452,925 2,452,925 2,702,000 249,075 110.15420% 09/01/2023 1,040,000 2,505,925 2,505,925 2,757,000 251,075 110,01925% 09/0112024 1,140,000 2,551,325 2,551,325 2,812,000' 260,675 110,21724% 09/0112025 1,255,000 2,606,475 2,606,475 2,868,000 261,525 110.03367% 09/0112026 1,395,000 2,680,588 2,680,588 2,952,000 271,413 1I0.12511%' 09/0112027 1,500,000 2,712,350 2,712,350 2,984,000 271,650 110.01530% 09/01/2028 1,630,000 2,763,600 2,763,600 3,043,000 279,400 110.11000% ('\ 09/01/2029 1,770,000 2,818,025 2,818,025 3,104,000. 285;975 110.14806% 09/0112030 1,925,000 2,875,675 2,875,675 3,166,000 290,325 110.09589% 09/0112031 2,090,000 2,934,800 2,934,800 3,230,000 ' 295,200 110.05861% 09/0112032 2,260,000 2,989,850 2,989,850, 3,294,000 304,150 110.17275% 09/0112033 2,445,000 3,050,550 3,050,550 . 3,360,000 309,450 110.14407% . 09/0112034 2,645,000 3,116,075 3,116,075 3,428;000 311,925 110.01019% 09/0112035 2,850,000 3,175,600 3,175,600, 3,4%,000 ' 320,400 110.08943% 09/0112036 ' 3,070,000 3,238,850 3;238,850 . 3,566,000 . 327,150 110.10081 % 33,675,000 75,549,309 75,549;309 ' 81,487,000 5:937,691 n Jul 5, 2005 11:06 am Prepared by Rod Gunn Associates ACENDA ITEM NO. PACE <1 ' Page I Co OFSZ3. BOND SOLUTION Community Facilities District 2005-2 U Improvement Area C Period Proposed PropOsed Total Adj Revenue Unused Debt Serv I Ending Principal Debt Service Debt Service Constraints _ Revenues Coverage 09/0112006 1,121,403 1,121,403 (1,121,403) 09/0112007 15,000 1,313,088 1,313,088 1,450,000 . 136,913 110.42676% 09/0112008 45,000 1,342,338 1,342,338 1,479,000 ' 136,663 110.18093% 09/0112009 75,000 1,370,088 1,370,088 1,508,000 137,913 110,06596% 09/0112010 105,000 1,396,338 1,396,338 1,538,000 .141,663 110.14529% . 09/01/201 I 140,000 1,426,088 1,426,088 1,569,000 142,913 110,02130%' 09/0112012 175,000 1,454,088 1,454,088 1,600,000 145,913 110,03464% 09/0112013 210,000 1,480,338 1,480,338 1,632,000 151,663 110.24513% ' 09/0112014. 250,000 1,509,838 1,509,838 1,665,000 155,163 110.27677% 09/0112015 295,000 1,542,338 1,542,338 1,698,000 155,663 110,09264% ' 09/0112016 340,000 1,572,588' 1,572,588 1,732,000 159,413 110.13696% 09/0112017. 390,000 1,605,588 1,605,588 1,767,000 161,413 110,05317% 09/0112018 440,000 1,636,088 1,636,088 1,802,000 165,913 110.14081% 09/0112019 495,000 1,669,088 1,669,088 1,838,000 168,913 110.12005% 09/0112020 550,000 1,699,338 1,699,338 1,875,000 175,663 11033712% 09/0112021 615,000 1,736,838 1,736,838 ],913,000 176,]63 ] 10.14272% 09/0112022 680,000 1,771,088 1,771,088 1,951,000 179,913 110.15831% 09/0112023 750,000 1,807,088 1,807,088 1,990,000 182,913 110.12195% 09/0112024 825,000 1,842,713 1,842,713 2,030,000 187,288 110.16369% 09/0112025 905,000 1,879,400 1,879,400 2,070,000 190,600 110.14153% 09/0112026 990,000 1,916,888 1,916,888 2,112,000 195,113 110.17861% 09/01/2027, 1,080,000 1,954;913 1,954,913 2,154;000 199,088 110.183%% 09/0112028 1,175,000 1,993,213 1,993,213 2,197,000 203,788 110,22407% 09/01/2029 1,280,000 2,036,525 2,036,525 2,241,000 204,475 110.04039% U 09/01/2030 1,390,000 2,076,125 2,076,125 2,286,000 209,875 110.10898% 09/0 lI203 I 1,510,000 2,119,675 2,119,675 2,332,000 ,212,325 110.01687% 09/0112032 1,635,000 2,161,625 2,161,625 2,378,000 216,375 110.00983% 09/0112033. 1,765,000 2,201,700 2,201,700 2,426,000 224,300 110.18758% 09/0112034 1,905,000 2,244,625 2,244,625 2,474,000 229,375 110.21886% 09/0112035 2,055,000 2,289,850 2;289,850 2,524,000 234,150 I 10.22556% 09/0112036 , 2,215,000 2,336,825 2,336,825 2,574,000 237,175 110.14945% 24,300,000. 54,507,716 54,507,716 58,805,000 4,297,284 u Jul 5, 2005 11: 12 am Prepared by Rod Gunn Associates Page 1 AGENDA ITEM NO. \ () PAGE~OF '9~ n 1. 2 3. 4.. 5. 6. 7 8. n I 9. - 10. 11. 12. 13 '14. 15. 16. 17 18. 19. n 20. AB of 7/02/05 CITY OF LAKE ELSINORE COMMUNITY FACILITIESDISTRlCf NO. 2005-2 (Alberhill Ranch) CALENDAR OF KEY EVENTS ASSUMPTIONS: Grading Started Final Map'Recorded . Models Started EVENT Draft Developer Deposit & Reimbursement Agreement DATE Completed Updated Draft Rate & Method of Apportionment & Special Tax Projection Completed Petition & Deposit Agreement from Property Owner Completed City Conncil Approves Deposit Agreement City Council adopts Resolution oflntention and Resolution of Intention to.lncur. Bonded Indebtedness Completed Completed Draft Fnnding & Ac~isition Agreemept circulated Draft CFD Report Circulated 7/29/05 08/05/05 District Legal Documents circulated 08/05/05 .^...,. Jeiat Fis8Heing Agreem~at :\I'I'Oe,'e6 , ~. 98/1~5 Final Comments due on Legals Market AbsorPtion Study completed 08/]2/05 08/19/05 City Council Meeting. 1. Public Hearing 2. Adoption of Resolution of Formation 3. Election . , 08/23/05 Draft POS circulated Draft Appraisal completed (Dated Septeinber I, 20(5) . . . 09/02/05 09/09/05 City Council Meeting - Adoption of Bond Resolution ,09113/05 Final Comments due on POS 09/19/05 Print POS 09/23/05 Price Bonds ] 0/06/05 Ordinance Effective Date 10/13/05 Bond Closing 10/20/05 AGENDA ITEM NO. Co PAGE-LL-OF 513 i RESOLUTION NO. 2005- CoCA. () WHEREAS, it is the intention of the Council to finance parks, open space U and storm drains maintenance services that are in addition to those 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 through the formation of. the CFD subject to the levy of a special tax to pay for such services, being approved at an election to be held within the boundaries of the CFD; and WHEREAS, it is also the intention of the Council to finance the acquisition and construction of the Facilities (as defined below) or any combination thereOf through, the formation of the CFD, ,subject to the authorization of bonds and the levy of a special tax to pay lease payments, installment purchase payments or other payments, or principal and interest on bonds, being approved at an election to be held within the boundaries of the CFD; and WHEREAS, pursuant to Section 53350 of the Act, the Council may designate a portion or portions of the CFD as one or more improvement areas for purposes of financing of, or contributing to the financing of, specified pubiic facilities; . u 45632453.1 ACENDA ITEM NO. PACE.-ia lD OF g~ n . NOW, THEREFORE, THE CITY. COUNCIL OF THE CITY OF LAKE ELSINORE DOES HEREBY RESOLVE, DETERMINE AND ORDER AS, FOLLOWS: Section 1. The Council hereby determines to institute proceedings for the formation of a community facilities district under the terms of the Act. The exterior boundaries of the CFD 'are hereby specified and describedtobe as shown on that certain map now on file in the 'office of the Clerk entitled . "Proposed Boundary of Community Facilities District No. 2005-2 of the City of Lake Elsinore (AlberhillRanch)," Which map indicates by a boundary line the extent of the territory included in the proposed cOmInunity facilities district and shall govern for all details as to the extent ofthe CFD. Onthe original and one cbpy of the map of such CFD on file in the City Clerk's office, the City Clerk shall endorse the certificate evidencing the date and adoption of this resolution. The City Clerk shall file -the original of such map' in her office and, within fifteen (15) days after the adoption of this Resolution, the City Clerk shall' file a copy of such. map so . endorsed in the records of the County Recorder, County of Riverside, State of California. Section 2. the name of the proposed CFD shall be "City of Lake Elsinore' n Community Facilities District No. 2005-2 (Alberhill Ranch).'" , Section 3. . The Council hereBy. designates the portions of the CFD as described in Exhibit A attached hereto, as Improvement Area A, Improvement Area B and Improvement. Area C, respectively, of City of Lake Elsinore Community Facilities District No. 2005"2 (Alberhill Ranch). . , " . Sectio~ 4. Except where funds areotherwise.~vailable, 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 of the cost of providing parks, open space and sotrrn drains maintenance services (the. "Services") that are in, addition to those provided in the territory within the CFD prior to the form,ation of the CFD and do not supplant services already available within the, territory propos~d 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. non-exempt real property in the CFD. The schedule of the rate and method of apportionment and manner of collection of the Services Special. Tax is . (\ 45632453.1 2 ACENDA ITEM NO. PACE I ~ 0J OF g,~ described, in detail in Exhibit B attached hereto and by this reference incorporated ~~, U The Services Special Tax is apportioned to each parcel on the' for~going basis pursuant to Section 53325.3 of the Act. - , , , . ,Section 5. . The facilities proposed to be financed by' each improvement liea of the CFD are, public infrastrU(;ture facIlities and other governmental facilities with an estimated useful life of five yem:s 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 streets, streetscape, park and recreation facilities, storm drain, other City facilities and fees, water and sewer facilities ,and fe~s of the El~inore Y,alleyMunicipal Water District, facilities of Cal Trans and related costs including designs, inspections, professional fees, annexation fees, connection fees and acquisition cos~s (the "Facilities"). Such Fapilities need not be physically located within th~ CFD., Section 6. 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 "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 of reserve funds,' the remarketing, credit enhancement-and liquidity fees, the costs of administering the _ levy and 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,discIosure 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 continuin~ lien against all non-exempt 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 ActaIid 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 Battached hereto and by this ~eference incorporated herein. The Special Tax is based upon the cost of financing the 45632453.1 3 ACENDA ITEM NO. CD PACE 11./ OF K~ u u n n Facilitiesin 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 Council shall, on behilif of the CFD, increase the levy to the extent necessary upon the remaining property within the'CFD which is not' delinquent or exempt' iri order to yield the" required payffients, 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. . ' Section 7. 'The Council hereby finds that the' proposed Facilities are necessary ,to meet increased demands put upon the City as a result of the new development or rehabilitation within the proposed CFD. Section8. A public hearing (the "Hearing") on the establishment of the CFD arid the proposed rate and method of apportionment of the Services Special Tax and the Special Tax shall be held on August 23,2005, at 7:00 p.m., or as soon thereafter as practicable, at the chambers of the Couricil, 130 S. Main Street, Lake Elsinore, California 92530. Section 9. At the time and place set forth above for the hearing, any interested person, including all persons owning lands or registered to vote within the proposed CFD, may appear and be heard. " Section 10. Each City officer who is or will be responsible for the Services and the Facilities to be financed by the CFD, if it is established, is hereby directed to study the proposed CFD and, at or before the time of the above-mentioned Hearing,.file a report with the Council, and which is to be made a part of the record of the Hearing, containing a brief description of the Services and the Facilities by type which will in his or her opinion be required to adequately meet the needs of the CFD and, his or her, estimate of the cost ,of providing. the Services and the Facilities. The City Manager is directed to estimate thefair and reasonable cost of all incidental expenses, including the cost of planning and designing the Facilities to be financed pursuant to the Act, including the cost of environmental evaluations n of such facilities, all costs associated with the creation of the CFD, issuance of 45632453,1 4 (0 OF ~?, AGENDA ITEM NO. PAGE-1 " bonds, determination of the amount of any special taxes, collection of any special taxes, or costs otheIWise incurred in .order to carry. out the authorized purposes of U the City with respect to the CFD, and any other expenses incidental to the construction, completion and inspection of the authorized work to be paid through the proposed financing. - Section II. The City may accept. advances of fimds from any sources, including,private persons or private entities, and is authorized and directed to use such fimds for any authorized purpose, including any cost incurred by the City in creating the CFD. The City may ~nter into an agreement to repay. all of such funds as are not expended or committed for any authorized purpose ,at the time of the" election on the levy of the. Services Special Tax and the. Special Tax, if the proposal to levy such tax should fail, and to repay all of such funds advanced if the levy of the Services Special Tax and the :Special Tax shall be approved by the qualified electors of the CFD. Section 12. The City Clerk is hereby directed to publish a notice (''Notice'') of the Hearing pursuant to Section 6061 of the Govermnent Code in a newspaper of general circulation published in the area of the proposed CFD, . Such Notice . shall contain information set forth in Section 53322 of the Act. Such publication shall be completed at least 7 days prior to the date of the Hearing: . . -' Section 13. The Clerk Illay send a copy of the Notice by first-class mail, postage prepaid, to each registered voter and to each landowner within proposed CFD as shown on the last equalized assessment roll. 'Said mailing. shall be completed not less than fifteen (15) days prior to the date of the Hearing. . Section 14. Pursuant to Section 53344.1 of the Act,. the Council hereby . reserves to itself, in its sole discretion, the right and authority by subsequent. resolution to allow any owner of property within the CFD, subject to the provisions of Section 53344:1 of the Act and those conditions as it may impose, and any applicable prepayment penalties as prescribed in the bond indenture or comparable instrument or document, to tender to the CFD treasurer in. full payment or part payment of any installment of the special taxes or the interest or penalties thereon which may be due or delinquent, but for which a bill has been received, any bond or other obligation secured thereby, the bond or other obligation to betaken at par . . and credit to be given for the accrued interest shown thereby computed to the date of tender. . . 45632453.1 5 AGENDA ITEM NO. c.:. 0 PAGE_1 to OF g'~ U u (\ n (\ Section 15. The voting procedure with respect to the establishment of the CFD and the imposition of the special. tax shall be by hand delivered or mailed ballot election. _ . 45632453. ] 6 AGENDA ITEM NO. to PAGE---11-0F 8~ , .. PASSED, APPROVED AND ADOPTED this ,2005. ATTEST: CITY OF LAKE ELSINORE By: Title: Mayor day . of u City Clerk of the City of Lake Elsinore APPROVED AS TO FORM: Barbara Leibold, City Attorney 45632453.1 7 u u ACENDA ITEM NO. (~ PACE }J( OF S n n n STATE OF CALIFORNIA ) ) ss. COUNTY OF RIVERSIDE ) I, , 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: NOES: ABSENT: ABSTAIN: By: City Clerk ofthe City of Lake Elsinore 45632453:1 ACENDA ITEM NO. (0. PACE~OF W1 45632453.1 , EXHIBIT A u IMPROVEMENT AREA DESIGNATION' :l " ., u u ACENDA ITEM NO. Co PACE...2a.-OF g1 ('\ -=::I] In N I If) o o NW a:: .. .0 Oz Z~ ~ u, f-, W oU w.. 1"; a::: w:c~ z <I-'~ 0",'" ~(f)<( ~~~ ::> 0 -.J 0:::< o. ::Ju'o In (f) lL. :E 0 u, ~ W 0 ~ ~O ~f-,)-~:::>~ o..J!:: ~8lii "'UU 0.<( lL.W ~F!: zlL. ::Jo ~ ~ o U .Rngl'~~~I.I'oN ~ . .0 ;:s ~ ~ !z ~, w ~ ~ \ '" ~ 0. ;!! " ; .~..,,.."" ,..t';"'- -"'f'iP / >Ifl1/ V ~1~ / ~ ~ ~ ;!~il N I@~~~ I ~ , " ::E lit i ~ ~~I ~ - > ;!fL. ~I ~I~~~~ ~I~~~ I!l i ~. ~~Il ~ Ii il:; "11 ~~lii ~ ~~il; ! :;) Hlb ! " i . !~ ~~b~~ ~ ~~i:.l . Ii! d~ " 0 ~HI .u Iloo ~ ) ~ ~~r~~ I ~ ~ (I) "-,_0 8 0 t>~ ~ ~ t~ ~li~ ~ ~ 1.1 t ~ It, p ~~ 6 ihdij Ii s 8 ~g6~ t> ~ !I .~ ~ Ig~j: ~ . ~ 3 0 ~ m!i!~ ; ~ ; I!U ~ :~ 0 ~~H~~ ~ ~ .~ ". Ii _~lS<..>iE...l; ~ <0 0 ~ 10 tT~~ ~ ~ t ~ ei ~a "~ ~~ ~~ !i ii i. ~, 2m w' i';;:s g:~ ;!! ,nwrr J.D;Jf.(JQN \ ~~ ~~ " ~ a~ Ua~llaaaaa aa a a ua aa' ~~~~~ ~I~. ..I~.i~ij~~~ ~ ~"" "I ~- ~',"" - ~--[ ~I~ m~~!~I~~~S ~II; ~~ ~ ~ :5~~1 ~ ~~ ti:t~i~~~~ ~ ~ ~ ~~,:;'~~l!i: ~~! "',' ! I ., ~ ~tn~H~'t3I~~~~ ~::: ~ t:! ~ ~<~ ~~~I~I ~ ' t..I l.,>t> \,J(,,(.>(,j\}U\.)iJi , r ." ." n m >'- z. W..;r;: ;:;. ~;:s g:~ ;!; '~l:9q1 ~.9l;~-'t)y EXHIBIT B u RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX (IMPROVEMENT AREA A) (IMPROVEMENT AREA B) . (IMPROVEMENT AREA C) u :' ~ u 45632453.1 AGENDA ITEM NO. LO PAGE a~ OF ~n (\ EXHIBIT 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 ofCFD 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 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 (\ City of Lake Elsinore Community Facilities District No. 2005-2 (Alberhill Ranch) Improvement Area A ACENDA ITEM NO. PAGE a3 '-0 OF ~3 June 30, 2005 Page I Area A, including attorney's fees and other costs related to commencing and pursuing to completion U any foreclosure 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 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 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. "Assessor's Parcel Number" means that number assigned to an Assessor's Parcel by the County for purposes of identification. u "Assigned Special Tax for Facilities" means the Special Tax of that name described in Section 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 fonD of bonds, notes, certificates of participation, long-term leases, loans from government agencies, or loans from banks, other financial institutio!ls, private businesses, or individuals, or long-term contracts, or any refunding thereof, to which Special Taxes for Facilities within Irnpro~ement Area A have been pledged. . "Building Square Footage" or "BSF" means the squareJootage 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] . "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 U collection of the Special Taxes. City of Lake Elsinore Community Facilities District No. 2005-2 (Alberhill Ranch) Improvement Area A ACENDA ITEM NO. ~ PACE "dH OF 3 June 30, 2005 Page 2 n "CFD No. 2005-2" means Community Facilities District No. 2005-2 (Alberhill Ranch) established by the City under the Act. n (\ J, "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'ParcelsofTaxable Property that: (i) are included in a' Final Map that was recorded prior to the January 1 51 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 15t preceding the Fiscal Year in which the Special Tax is being levied. "Exempt Property" means all Assessor'li 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 nmy be issued without further subdivision. "Fiscal Year" means the period commencing on July 1 of any year aIidending the following June 30. "Improvement ATeaA" means Improvement Area A OfCFD 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 theindenture, fiscal agent agreement, resolution or other instrument pursuant to which Bonds are issued, as modified, amendedandlor supplementedfrOlll time to time, and any , instrument replacing or supplementing the 'same. ' " "Land Use Type" means any of the t~es listed in Table 1 of Section D.' "Maximum Special Tax for Facilities" means the maximum Special Tax for Facilities, determined in accordance with'Section C, thatcan be levied by CFD No. 2005-2 within ImprovementAreaA in any Fiscal Year on any Assessor's Parcel. " , "Non-Residential Property" means all Assessor's Parcels of Developed Property for which'it building permit was issued for any type, of non-residential use. "Partial Prepayment Amount" means the amount required to prepay a portion ofthe Special Tax . for Facilities obligation for an Assessor's Parcel, as described in Section H. NDA ITEM NO. CD , " ,',' ,ACE , 'PACE.A-.S OF SZ~ City of Lake-Elsinore Community Facilities District No, 2005-2 (Alberhill Ranch) Improvement Area A June 30, 2005 Page 3 "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. . U "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 Undeveloped Property" means all Assessor's Parcels of Taxable Property that would otherwise be classified as Exempt Property pursuant to the provisions of Sectioll J, but cannot be classified as ExemptProperty because to do so would reduce the Acreage of all Taxable Property below the required minimum Acreage set forth in Sectiqn J. .' "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. . . , "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 U by CFD No.. 2005-2 pw;suant to the Act.:. "Special Tax for Facilities" means any of the special taxes authorized to be .levied within Improvement Area A by,CFD No. 2005-2 pursuant to the Act to fund theSpecial Tax Requirement' for Facilities. ." ' . . . .. "Special Tax Requirement for Facilities" means the amount required in any FiscaI 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 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. "Trustee" means the trustee, fiscal agent; or paying agent under th~ Indentu~ENDA ITEM NO. LQ . ) PAGE riJn OF g~ ~ , CitY of Lake Elsinore Connnunity' Facilities District No. 2005-2 (Alberhill Ranch) Improvement Area A June 30, 2005 Page 4 (' "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 Property shall be further classified as Developed Property, Appro.ved Property, Undeveloped Property or Provisional Undeveloped Property. In addition, each Assessor's Parcel of Developed Property shall further be classified as Residential Property?r 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 Tail: for Facilities rate based on its Bpilding Square Footage. n SECTION C MAXIMUM SPECIAL TAX FOR FACILITIES, 1. Developed Pronertv , . ,J The 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 AS,sessor's Parcel of Apartment Property or Non-Residential Property shall be the applicable Assigned Special Tax for Facilities described in Table I of Section D. n Prior to the issuance of Bonds, the A,ssigned 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 yndevelopedProperty. The reductions peimitted City of Lake Elsinore JIDle 30, 2005 CornmIDlity Facilities District No. 2005-2 (Alberhill Ranch)" ACENDA ITEf.'NO, (, ~ " Improvement Area A PACE~OF f _ . Page 5 pursuant to this paragraph shall be reflected inan 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". u 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 tq ,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, Properly, 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. Developed Property u Each Fiscal Year, eachAssessor's Parcel of Single Family Property, Apartment Property, or Non-Residential Property shall be subject to an Assigned Special Tax for Facilities. The Assigned Spycial Tax for Facilities applicable to an Assessor's Parcel of Developed Property for Fiscal X ear 2006-07 shall b~ determined pursuant to Table I below.. TABLEt ASSIGNEDSPE<:;IAL 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 ;". . AOENDA ITEM NO, PAOE rl. ~ ( gu OF ~ . City of Lake Elsinore Connnunity Facilities District No, 2005-2 (Alberhill Ranch), ' Improvement Area A June 30, 2005 Page 6 n (\ (\ 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 $21,330 per Acre. :>' . 3. ., Increase in the Assiened 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%) ofthe amount in effect in the prior Fiscal Year. SECTION E . BACKUP SPECIAL TAX FOR FACILITIES At the time a Final Map is recorded, the.Back~pSpecial Tax fofFacilities for all Assessor's Parcels of Developed Property classified or reasonably expected to be classified as a Single Family Property within such Final Map areashallbe 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, ~xcluding 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. l . . , The Backup Special Tax for Facilities shall not apply to Non-Residential Property or Apartment Property.' . Notwithstanding the foregoing, if Assessor's Parcels ofDeveJoped 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 Facilitiesfor the area that has been changed or modified shall be recalculated, based onthe methodology above, to equal the amount ofBacklip.Special Tax for Facilities.that would have been generated if such change did not take place. . 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. AGENDA ITE. M NO. \ R PAGE~OF ~. City of Lake Elsinore Conununity Facilities District No. 2005-2 (AlberhiII Ranch) Improvement Area A June 30, 2005 Page 7 SECTION F METHOD OF APPORTIONMENT OF THE SPECIAL TAX FOR FACILITIES u Commencing Fiscal Year 2006-07 and for each subsequent Fiscal Year, the City Council shall levy Special Taxes for Facilities on all Taxable Property il) accordance with the following steps: Step One: Step Two: Step Three: Step Four,: 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 to satisfY the Special 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 Requirement for Facilities. If additional moneys are needed to satisfY the Special Tax Requirement for Facilities after the first two.steps have been completed, the 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 Requirem~nt for Facilities. ' .. 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 f~r 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 Fa~i1ities 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. ' u . " 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. , SECTION G ACENDA ITEM NO. PREPAYMENT OF SPECIAL TAX FOR FACILITIES PACE 30 lDU oFIU . City of Lake Elsinore Community Facilities District No. 2005-2 (Alberhill Ranch) Improvement Area A June 30, 2005 Page 8 (\ The following additional definitions apply to this Section G: " "CFD Public Facilities" means $22,000,000 expressed in 2005 dollars, which shall increase by the Construction Inflation Index on July I, 2006, ahd on each July r 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 Method of Apportiomn,ent. ' "Construction Fuud" means an accollnt 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 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 Fundactually 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 outstai1ding after the first interest and/or principal payment date following the current Fiscal Year, exCluding Bonds to be redeem~d 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 Assess'or'sParcel 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 occurring date that notice of redemption of Bonds from the proceeds of such prepayment may be given by the Trustee pursuant to the Indenture. AGENDA ITEM NO. lO PAGE-3.L-OF ~S (\ City of Lake Elsinore Community Facilities District No. 2005-2 (Alberhill Ranch) Improvement Area A June 30; 2005 Page 9 The Prepayment Amount for each applicable Assessor's Parcel shall be calculated according to the. following formula (capitalized terms defined below): U Bond Redemption Amount Redemption Premium, , . Future Facilities Amount Defeasance Cost.- Administrative Fee Reserve Fund Credit Capitalized Interest Credit Prepayment Amount plus . plus plus plus . less less equals 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'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 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. U 2. For each Assessor's Parcel of Developed Property, Approved Property, Undeyeloped 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 reasonablydetermined by the City, and (b) divide the Backup Special Tax for Facilities computed pursuant to paragraph I for such Asse.ssor'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 determiiled 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 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.',' 5. Compute the Future Facilities Cost. ACENDA ITEM NO. . (ii PACE Ad OF ( J City of Lake Elsinore Comnnmity Facilities District No. 2005-2 (Alberhill Ranch) Improvement Area A June 30, 2005 ".\ ; Page. 10 ('\ 6. . Multiply the larger quotient computed pursuant to paragraph 2( a) or 2(b) by the amount determined pursuanfto paragraph 5 to determine the Future Facilities Cost to be prepaid (the "Future Facilities Amount"). , 7. Compute the amount neededto 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 ror 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 arnount 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." 12. . Calculate the "Reserve Fund Credit" 'as the lesser of: (a) the expected reduction in the applicable reserve requirements, ifany, 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 it surety bond or other instrument at the time of the prepayment, then no Reserve.Fund Credit shall be given. 'Notwithstanding the foregoing, the Reserv;eFundCredit 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." n 14. The Prepayment Amount is equal to the sum of the'Bond Redemption Amount, the Redemption Premium, the Future Facilities Amount, the City of Lake Elsinore Community Facilities District No, 2005.2 (Alberrull Ranch) Improv~ment Area A June 30, 2005 . AClENDA n'EM NO.~ PACE 3~ _OF~ . Page 11 Defeasance Cost, and the Administrative Fee, less the Reserve Fund Credit and the Capitalized Interest Credit. U ':',. 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 11, 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. Insuch cases, the increment above $5,000 or integral multiple thereofwill 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 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, shaH be at least 1.1 times the regularly scheduled annual interest and principal payments on all currently Outstanding Bonds in each future Fiscal Year. U 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 =(Pa - A) x F + A ' Theterms above have the following meanings: ACENDA ITEM NO. cQ U . PACE "}.,L{ OF ~? City of Lake Elsinore COInmunity'Facilities District No, 2005-2 (Alberhill Ranch) Improvement Area A . 'June 30, 2005 Page 12 n PP= PG= F= the Partial Prepayment Amouni. , the Prepayment Am'ountcalCulated according to Section G. .' the percent by which the owner ofthe Assessor's Parcel is partially prepaying the Special Tax for FaCilities obligation. the Administrative Fee calCulated according to Section G. A'= The owner of any Assessor's Parcel who desires such prepayment shall notifY theCFD 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 prepaymentofthe Special ' Tax for Facilities for an Assessor's Parcel withill30 days of the request and may charge a reasonable ' fee for providing this serVice. With respect to any Assessor's Pared that is partially prepaid, the City Council shall (i) distribute the funds remitted to it according to Section G, and (ii) indicate in the records ofCFD 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 ofthe Special Tax for Facilities obligation to indicate the obligation of such Assessor's Parcel to pay such prepaid portion ofthe Special Tax for Facilities shall cease. Notwithstanding the foregoing, no partial prepayment will be allowed unless the amount qfSpecial 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. n SECTION I TERMINATION OF SPECIAL TAX For each Fiscal Year that any Bonds are outstanding the Special Tax for Facilities shall belevied 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 determined (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 othetobligations of Improvement Area A have been satisfied. ' , SECTION J EXEMPTIONS (1 ,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 , City of Lake Elsinore Conununity Facilities District No. 2005-2 (Alberhill Ranch) Improveme.llt Area A June 30, 2005 ACENDA ITEM NO. PACE :1 t) \..0 OF ~~ Page 13 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 U fordedication, 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 classifY an Assessor's Parcel 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. 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 valqrem property taxes, provided, however, that hnprovement Area A may collect Special Taxes for Facilities at a different time or ina different manner if necessary to meet its financial obligations, . and may covenant to foreclose and may actually foreclose on delinquent Assessor's Parcels as U 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 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. "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. .. AGENDA ITEM NO. ~ -u . . PAGE~" OF ~ City of Lake Elsinore Connnunity Facilities District No. 2005-2 (Alherhill Ranch) Improvement Area A June 30, 2005 Page 14 (\ "Operating Fnnd" 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 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. ' "Special Tax Requirement for Services" means'the amount determined in any Fiscal Year fOr' ImproverrientArea A equal to (i) the budgeted costs directly related to the Service Area, including, maintenance,' repair and' replacement of certain cpmponents of the Service Area which have been' , accepted and maintained or are reason, ably expected to be accepted and maintained during the current Fiscal Year, (ii) Administrative Expenses, and (iii)'anticipated delinquent Special Taxes for Services based oii"the delinqtiencyrate in CFD No. 2005-2 for the previous Fiscal Year, less (iv) the OJJerating Fund Balance, as determined by the CFD Administrator. . " 1. Rate and Method of Apportionment ofthe Special Tax for Services (\ Commencing Fiscal Year 2005-2006 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 2005-2006 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%) of the amount in effect in the prior Fiscal Year. 2. Duration of the 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 the sole discretion of the City Council. (\ ',. ;. 3. Collection oftheSpeciaLTax for Services " " j" cn OF R"l. City of Lake Elsinore CommunitY Facilities District No, 2005-2 (Alberhill Ranch) Improvemen~ Area A ' ACENDA ITEM NO. PACE 1..7 June 30, 2005 ' Page 15 The Special Tax for Services shall be collected.in the same. manner and at the same time as ordinary ad valorem property taxes, proyided, however, that hnprovement Area A may collect U the SpeCiiu Tax for SerVices at a different time orin a different manner if necessary to meet" its funding requirements. .' .sECTION M APPEALS if . ~ ~ . . Any property owner claiming that the amount or application of the Special Tax is 110t 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; andif necessary, meet with the property owner, considyr 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 ariAssessor's Parcel be modified or changed in favor of the property owner, a cash refund shall not be made (excePt for the last year ofIevy), but an adjustment shall be made to the Special Tax on that Asses~or'soParcelln the subsequent piscal Year(s). ' ;1' I", The City Council may interpret this Rate and Method of Apportiollment 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. U .' ' ".' EXHIBIT "A" CITY OF LAKE ELSINORE AND CFD NO. 200S-X CERTIFICATE ....;, 1. Pursuant to Section of the Rate and Method of Apportionment of Special Tax (the U "RMA"), the City of Lake Elsinore (the "City") and ComrriuhityFacilities District No. 2005- . City of Lake Elsinore Community Facilities District No. 2005-2 (Alberhill Ranch) Improvement Area A AGENDA ITEM NO. PACE 1~ lO OF 8-z, Jnne 30, 2005 Page 16 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 informati~n in Tabl~ 1 rel~ting 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 I showing effective change to special tax rates and/or insert change to special tax rates for Undeveloped Property] 2. Table 1 may only be modified priorto the issuance ~fBonds.. . , 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 Imprpvement 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 FACILITIES DISTRlCf NO. 2005-X OF THE CITY OF LAKE ELSINORE By: Date: . . " ~ AGENDA ITEM NO. . LO PAGE.39-0F g'S June 30, 2005 (\ City of Lake Elsinore Conununity Facilities District No. 2005-2 (AlberhilI Ranch) Improvement Area A Page 17 EXHIBIT u RATE AND METH.OD 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 ofCFD 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 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 U 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 1 of Division 2 of Title 5 of the Government Code of the State ofCalifomia. "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 ofthe 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 Special Taxes; the costs of the City, Improvement Area B or any designee thereof rehited 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 U City of Lake Elsinore Community Facilities District No. 2005-2 (AlberhiIl Ranch) Improvement Area B ACENDA ITEM NO. PACE 4.f () June 30, 2005 (0 OF }?'2, Page I (\ Area B, including attorney' sfees and other costs related to commencing and pursuing to completion any foreclosure 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 unifs 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 ofland designated on an Assessor's Parcel Map with an assigned Assessor's Parcel Number. , ' ' "Assessor's Parcel Map" means an official map ofthe 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. "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,IoansfTom government agencies, or loans from banks, other financial institutions, private businesses, or individuals, or.long-termcontracts, 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 1 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) Improve"Hlent Area B i June 30, 2005 ACENDA ITEM NO. PAGE Lf / Co Of X':s Page 2 "CFD No. 2005-2" means Community Facilities District No. 2005-+ (Alberhill Ranch) established by the City under the Act. u "City" means the City of Lake Elsinore. "City Council" means the City Council of the City of Lake Elsinore; acting as the Legislative Body ofCFD 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 stpreceding 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 1 st preceding the Fiscal Year in which the Special Tax is being levied. "Exempt Property" means all Assessor's Parcels designated as b~ing 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 ofa 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. u "Improvement Area B" means Improvement Area BofCFD 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 and/or Table 2 of Section D. "Maximum Special Tax fllr 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 Bin " any Fiscal Year on any Assessor's Parcel. "Multifamily Pmperty" 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. " " . :1 ACENDA ITEM NO. PACE~OF Z u City of Lake Elsinore" Connnunity Facilities District No. 2005-2 (Alberhill Ranch) Improvement Area B June 30, 2005 Page 3 ("\ "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. i , I I I "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 th'at 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 1 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. (\ "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 MultifamilyUrut. "Special Tax" means any ofthe special taxes authorized to be levied within Improvement Area B byCFD 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 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 authorized by CFD No. 2005-2 provided that the inclusion of such amount does not cause an increase in the levy of n Special Tax for Facilities on Undeveloped Property as set forth in Step Three of Section F., less (vii) City of Lake Elsinore Community Facilities District No, 2005-2 (Alberhill Ranch) Improvement Area B June 30, 2005 ACENDA ITEM NO. lO _ Page 4 PAGE~OF 8"1. any amounts available to pay debt service or other periodic costs on the Bonds pursuantto the' Indenture. u "Taxable Property!' means all Assessor's Parcels within Improvement Area B, which are not Exempt Property. "Trustee" means the trustee, fiscal agent, or paying agent under the Indenture. "Uudeveloped 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 Bas 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 lmprovement Area B shall be assigned to Zone 1 or Zone 2 and shall be classified as Taxable Property or Exempt U Property. In addition, each Assessor's Parcel of Taxable Property shalfbefurther 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,~' '. ' ACENDA ITEM NO. (j) PACE~OF S?~ () City of Lake Elsinore Conununity Facilities District No, 2005-2 (Alberhill Ranch) Improvement Area B June 30, 2005 Page 5 (\ 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 burderi (as defined in the Statement of Goals and Policies for the Use of the Mello-Roo's Commimitv Facilities Act of 1982 adopted by the .. City CounCil, the "Goals and Policies") calculated pursuant to the Goals and Policies exceeds the City'smaximum 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. Tile 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. ... ,. . , , 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 NoiFResidential Property shall be subject to an Assigned Special Tax for Facilities. 1be Assigned Special Tax for Facilities applicable to an Assessor's Parcel of DevelopedProperty for Fiscal Year 2006-07 shall be determined putsuant to Table I and Table 2 below. City of Lake Elsinore Community Facilities District No. 2005-2 (Alberhill Ranch) Improvement Area B June 30, 2005 ACENDA ITEM NO. "J:? PACE~OF R7, Page 6 TABLE 1 . ASSIGNED SPECIAL FOR fACILITIES TAX RATES FOR DEVELOPED PROPERTY WITHIN ZONE 1 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 ore ual to 1,200 N/A N/A u . $4,938 $4,661 $4,356 $4,280 . $3,564 $3,373 $3,220 $2,896 Unit Unit Unit Unit Unit Unit Unit Unit u TABLE 2 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 u City of Lake Elsmore Connnunity Facilities District No. 2005-2 (Alberhill Ranch) Improvement Area B JIDle 30, 2005 ACENDA ITEM NO. . <--- ~ PACE '-( t, OF ~ Page 7 ("\ n n 2. ADDroved ProDertv~ UndeveloDed ProDertv and Provisional UndeveloDed PrODertv" 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 Assiened 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%) ofthe amount in effect in the prior Fiscal Year. SECTIONE BACKUP ANNUAL SPECIAL TAX FOR FACILITIES " At the time a Filial Map is recorded, the Backup Special Tax for Facilities for all Assessor's Parcels . of Developed Property classified or reasonably expected to be classified asa SingleFamily 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 . MultifamilyUnits 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,Zol!es, 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 place. City of Lake Elsinore Connnunity Facilities District No. 2005.2 (Alberhill Ranch) Improvement Area B ACENDA ITEM NO. C. ~ PACE 4l.... OF '1, June 30, 2005 Page 8 ' On each July 1, commencing July 1, 2007, the Backup Special Tax for Facilities rate shall be increased by two percent (2.00%) ofthe amount in effect in the prior Fiscal Year. U 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: 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 1 and Table 2 to satisfy the Special 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 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: Step Five: u 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 Spe.cial 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. . 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% ofthe Maximum Special Tax for Facilitiesapplicable 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 B. AGENDA ITEM NO. ' lJ). PA(jE~OF lS'~ ( J City of Lake Elsinore Community Facilities District No. 2005-2 (Alherhill Ranch) Improvement Area B June 30, 2005 Page 9 (\ SECTIONG 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 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 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 animal percentage change in the Engineering News- Record Building CosfIndex for the city of Los Angeles, measured as of the calendar year which ends inthe 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 o~Los Angeles; "Future Facilities Costs"~means the CFD Public Facilitiesmirius public facility costs available to be funded through existing construction orescrow accounts or fuilded 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 nonds" 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 oris expected to be issued,: or an Assessor's Parcel ofProvisiorial 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 prepa)'!Ilent 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 Administratorwith 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. (\ City of Lake Elsinore Community Facilities District No~ 2005-2 (Alberhill Ranch) Improvement Area B June 30, 2005 ACENDA ITEM NO. Co ~ PACE~OF ~ ~ rage 10 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 U the Indenture. The Prepayment Amount for each applicable Assessor's Parcel shall be calculated according to the following formula (capitalized terms defined below): ,', plus phIS 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: .' 2. 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 Pr9perty 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 . Facilitit;s for that Assessor's Parcel. U . '.. 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 1 for such Assessor'~ 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 Tax for Facilities computed pursuantto paragraph 1 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". 4. Multiply the Bond. Redemption Amount by the applicable redemption. premium, if any, on the Outstanding Bonds to be redeemed with the proceeds . u J City of Lake Elsinore Connnunity Facilities District No, 2005-2 (Alberhill Ranch) Improvement Area B June 30, 2005 ACENDA ITEM NO. . \.0 PACE t;o OF J{'?, Page 11 n n n of the Bond Redemption Amount. This product IS the "Redemption Premium." 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." 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 ofthe 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 City of Lake Elsinore Connnunity Facilities District No. 2005-2 (Alberhill Ranch) Improvement Area B June 30, 2005 ACENDA ITEM NO. PACE 11/ Co OF ~S Page 12 u ')>' ",. u .' u (\ 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 the Administrative Fee, less the Reserve Fund Credit . and the Capitalized Inte~est 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 p,::rragraph I, 1 ~hall be retajned by hnprovement Area B. TheSpecial Tax for Fa9ilitiesprepayment amount may be insufficient to redeem a full $5,000 increment of Bonds. In such cases, the increment above $5,000 or integral multiple thereofwill 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 pursuant to this Section G, the City Council shall indicate in the records ofhnprovement 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 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 n The Special Tax for Facilities obligation of an Assessor's Parcel of Developed Property, or an I 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 prepaidACENDA ITEM NO. 1O PAGE .5~ OF ~ City of Lake Elsinore Community Facilities District No. 2005-2 (Alberhill Ranch) Improvement Area B June 30, 2005 Page 13 The Partial Prepayment Amount shall be calculated according to the following formula: PP = (PG-A) xF +A u The teqns above ha~e 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'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 CF'D 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 U stich 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 ofCFD 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 B have been satisfied. ACENDA ITEM NO. (n PACE C; 1, OF Sf~ u City of Lake Elsinore CommWlity Facilities District No" 2005"2 (Alberhill Ranch) Improvement Area B June 30, 2005 Page 14 ('\ '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 byor restricted in use by the State of California, Federal or either local goverrunenis, Including school districts, (ii) Assessor's Parcels which areused 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. 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 all Taxable Property to less than 85.59 Acres for Zone I 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 I( . MA-NNER 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 ,." -i The following additional definitions apply to this Section L: "Developed Multifamily Unit" means a residential dwelling unit within a building in which each qf 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 io May I preceding the Fiscal Year in which the Special Tax for Services is being leyied. ACENDA ITEM NP. ( () PACE . r;; Lf OF sn (\ City of Lake Elsinore Community Facilities District No. 2005-2 (Alberhill Ranch) Improvement Area B June 30, 2005 Page 15 . "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 U 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 t4e 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 shallbe mirintained 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 Requiremerit for Services. . , / . ' "Special Tax Requirement for Services" means the amount d~termi~ed in any Fis~alYearfor ' Improvement Area 13 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 U 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. 1. Rate and Method of Apportionment ofthe 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 Develop,ed Single Family Unit, $121 per Developed Multifamily Unit, and $545 per Acre for each Assessor's Parcel of Non-Residential Property. On each July 1, commencing July 1, 2006, the Maximum Special Tax for Services shall be increased by two percent (2.00%) ofthe amount in effect in the prior Fiscal Year. 2. Duration of the Special Tax for Services AGENDA ITEM NO. CO PAGE S c; OF g7, U City of Lake Elsmore Community Facilities District No. 2005-2 (Alberhill Ranch) Improvement,Area B June 30, 2005 Page 16, ' n n n 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 foi 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 ofthe Special Tax is not correct may file a written notice of appeal with the CFD Administrator notIater than twelve months after having paid the first installment ofthe 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 rt'ifund 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 tothe 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. '.. .... " " :,. ACENDA ITEM NO. ~ 0 PAce-5k-Of ~7, City of Lake Elsinore Connnunity Facilities District No. 2005-2 (Alberhill Ranch) . Improvement Area B June 30, 2005 Pagel? EXHIBIT "A" u , CITY OF LAKE ELSINORE AND CFD NO. 200S-X CERTIFICATE 1. Pursuant to Section~ of the Rate and Method of Apportionment ofSpeciaJ 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 Area X or CFD No. 2005-X] shall be modified as follows: ,c [insert Table 1 showing effective change to speCial tax rates and/or insert change to special tax rates for Undeveloped Propertj} " . 2. Table 1 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 berecordedreilecting 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 of this 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: City of Lake Elsinore Community Facilities District No. 2005-2 (Alberhill Ranch) Improvement Area B AGENDA ITEM NO. ( ~ PAGE ~l OF _"S June 30, 2005 () Page 18 (\ n (\ EXHIBIT "B" ZONE MAP AGENDA ITEM NO. ( Q PAGE t;~ OF ~3 City of Lake Elsinore Conimunity Facilities District No. 2005-2 (Alberhill Ranch) Improvement Area B June 30, 2005 Page 19 ' '" I i.b o 0' hJ.~ ,0 Q;z: ;z:~ :lfJ ~.ill o ,1....1<:( n:hJ?,~ ,~ b-:~(.:):wa:: 0.(/)"",3',;,;", <C ~ -,0,- '" ;E- 0 ::I~_e w ',' J_L~ :c;Q ",",' e: ~t> Ei'~ ,0 N ~ _ 1Jl;Z4J t:~r ~>::)~' ~l.=' !8tn' 0.(0 '0: w...:.,J..LJ :c i'=>- Z.Li.- :J;'Q ::>' 2' o () p; is ~ <C ~ ~',~, ~'" .' "- ~ "- ~"lb <Q .'l2 "'~ ~. ~! ~ h " . ;n. ~ ~ *':0:: '~i1l :g~ ~ u , ~~ ~; ~ " '" " o " ~, 8' it ~ d g '"Wi! :~,.sl-',i ..~ t i;~i ~J ,t;.!~ .,,~ ~ h ~ I B <t u AGENDA ITEM NO. C .~ PAGE~OF .~ u City of Lake Elsinore Community Facilities District No. 2005,2 (Alberhill Ranch) Improvement Area B June 30, 2005 Page 20 n , EXHIBIT. . RATE AN~ 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 'ofCFD 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;exteht, and in the manner herein provided; . SECTION A . DEFINITIONS The terms hereinafter set forth have the folloWing meanings: n "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 equallo"the Acreage multiplied by 43,560. "Act" means the Mello"Roos Communities Facilities Act of 1982, as amended, being Chapter 2:5, Part 1 of Division 2 ofTitIe 5 of the Government Code of the State of California. "Administrative. Expenses" means' the following actual or reasonably estimated costs directly relatedto 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 ofthe duties required of it under the Indenture; the costs to the City, Improvement Area t 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 Sp.ecial 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 escrow account; and the City's annual administration fees and third party' expenses. Administration pxpenses 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 n City of Lake Elsinore Community Facilities District No. 2005-2 (Alberhill Ranch) Improvement Area C' . ~une30'2005 AGENDA rTEM NO. PACiE..]QO OF Page I Area C, including attorney's fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes. U "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 allAssessor's Parcels of Taxable Property: (i) that are included in a Final Map that was recorded prior to the January 15t preceding the Fiscal Year in which the Special Tax is being levied, and (ii) that have not been issued a building permit 011 :.or before May 15t. preceding the Fiscal Year in which the Special Tax is peing levied. ! . "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 Numper. "Assessor's Parcel Number" means that number assigned to an Assessor's Parcel by the COl;lllty for purposes of identification. "Assigned Special Taxfor Facilities" means the Spe~ial Tax of that name described in SectionD U below. , "Backup Special Tax for Facilities" means the Special Tax of that name described in Section E below. {A , "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 iong-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 intemalliving space", exclusive of garages or other structures not l!sed as living space, as determined by reference to the , building permit application for such Assessor'~,Parcel. . , "Calendar Year" means the period commencif.lg 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 i~ Section L, as applicable, and (iii) providing for the levy and collection of the Special Taxes. , \, U City of-Lake Elsinore Connnunity Facilities District No. 2005-2 (Alberhill Ranch) Improvement Area C June 30, 2005 AtENDAITEM NO. '-D PACE..ltz..L:OF 'R"l. Page 2 ".. n "CFD No. 2005-2" means Community Facilities Disirict No. 2005-2 (Alberhill Ranch) established by the City under the Ac~., "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 J ailU8ry 15t preceding the Fiscal Year in which the Special' Tax is being levied, and (ii) a bUlldirigpermit for new construction was issued on or before May 1st preceding the Fiscal Year in which the Special Tax is bein:g levied. n "Exempt Property" means all Assessor'sParcels desigriated as being exempt from Special Taxes as provided for in Section J. ' ' , "Final Map" means a sJbdivision ~f 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'condominiumplan pursuant to California 'Civil Code 1352 that creates individual lots for which' building permits may be issued without further subdivision. "Fisc~1 Year" means the period commencing on July 1 of any year and ending the foiIowing June 3Q . " , "Improvement Area C" means Improvement Area C ofCFD 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 1 and/or Table 2 of Section D.' ' "Maximum Special Tax for Facilities" means the maximum Special Tax for Facilities, determined in accordance with Secti~n 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. n ., . "Multifamily Unit'; means a dwelling unit within a building comprised of attached residential units available for sale to an end user.' ITEM NO' (0 , , AGENDA.- PAGE (Ol OF ~~ . City of Lake Elsinore Connnunity Facilities District No, 2005-2 (Alberhill Ranch) Improvement Area C June 30, 2005 Page 3 "Non-Residential Property" means all Assessor's Parcels of Developed Property for which a b~ilding permit was issued for any type of non-residential use. ,. ' U "Partial Prepayment Amount" means the amount required to prepay a portion ofthe 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 leyy,totheapplicable 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 Faciiities, 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 capnot 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 PropeI1y for'which a building permit has been issued for purpos'es 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. ' u "Single Family Unit" means a residential dwelling unit other than an Apartment Unit or Multifamily' Unit. "Special Tax" means any ofthe 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 p!lrsuant to the Act,to fund the Special Tax Requirement for Facilities.' ' "Special Tax Requirement for Fa~i1ities" means 'the am~unt 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 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) u City of Lake Elsinore Community Facilities District No. 2005-2 (AlberhiIl Ranch) Improve!TIe~t Area C . June 30, 2005 , . ACENDA ITEM NO. PACe..J,\ Co OF 1?'2, " Page 4 ("\ ("\ ("\ any.amounts available to pay debt service or other periodic costs on the Bonds pursuantto the Indenture. . "Taxable Property" means all Assessor's Parcels within Improvement Area C, which are not Exempt Property. ';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. "Zone" means Zone I or. Zone 2., "Zone'l" means a specific geographic area within Improvement Area C as depicted in Exhibit B attached hereto. . I "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. Developed Property The Maximum ~pecial 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,' . ACENDA ITEM NO. lO PACE~OF 1<1, June 30, 2005 City of Lake Elsinore Community Facilities District No. 2005-2 (Alberhill Ranch) Improvement Area C Page 5 , 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 U' described in Table 1 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 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 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. Multiple Land Use Tvpe 1n some instances art Assessor's Parcel of Dt;veloped Property may contain more than one Land Use Type. The Maximum Special Tax for Facilities levied on an Assessor's Parcel U , shall be the sum of the Maximum Special Tax for Facilities for all Land Use Types located , on the Assessor's Parcel. The CFU Administrator's allocation to each type of property shall be final. 3. Approved Propertv, 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. SECTION D ASSIGNED SPECIAL TAX FOR FACILITIES 1. Developed Property Each Fiscal Year, each' Assessor's Parcel of Single Family Property, Multifamily Property, ApartmentProperty, 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. u City of Lake Elsinore Connnunity Facilities District No. 2005-2 (Alberhill Ranch)" Improvement Area C June 30, 2005 ACENDA ITEM NO. PACE (0 C; (0 OF S? '2, . Page 6 -TABLE 1 ASSIGNED SPECIAL FOR FACILITIES TAX RATES. FOR DEVELOPED PROPERTY WITHIN ZONE 1 FOR FISCAL YEAR 2006-07. r--., n 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 TABLE 2 $4,938 $4,661 $4,356 $4,000 $3,659 $3,507 Unit Unit Unit Unit Unit ASSIGNED SPECIAL FOR FACILITIES TAX RATES . FOR DEVELOPED PROPERTY WITHIN ZONE 2 .1 FOR FISCAL YEAR 2006-07 n 'Buildiu 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 thah 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 AG~OA I1EM NO. lQ PAGE~OF g~ City of Lake Elsinore Community Facilities District No. 2005-2 (Alberhill Ranch) Improvement Area C June 30;2005 Page 7 2. Approved Property, Undeveloped Property and Provisional Undeveloped Property Each Fiscal Year, each Assess,or' s Parcel ,of Approved Property, Undevel,oped Property and Pr,ovisi,onal Undevel,oped Pr,operty shall be subject t,o an Assigned Special Tax f,or Facilities. The Assigned Special Tax'f,or Facilities rate f,or an Assess,or's Parcel classified as Appr,oved Pr,oPerty, Undevel,oped Property and Provisi,onal Undevel,oped Property f,or Fiscal Year 2006-07 shall be $24,110 per Acre f,or Z,one I and $55,975 per Acre f,or Z,one 2. u 3. ' Increase in the Assil!ned Special Tax for Facilities On each July I, c,ommencing July I, 2007, the Assigned Special Tax f,or Facilities rate f,or ,Devel,oped Property" Approved Pr,operty, Undevel,oped Pr,operty and Pr,ovisi,onal Undevel,opedPr,operty shall be increased by tw,o percent(2.00%) ,of the am,ount in effect in the pri,or Fiscal Year. SECTION E BACKUP ANNUAL SPECIAL TAX FOR FACILITIES At the time a Final Map is rec,orded, the Backup Special Tax for Facilities f,or al\ Assess,or's Pwcels ,ofDevel,oped Property classified ,or reas,onably expected t,o be classified as a Single Family Property ,or Multifamily Pr,oPerty within such Final Map area shall be determined by (i) multiplying (a) the Maximum Special Tax f,or Facilities rate f,or Undevel,oped Property by (b) the t,otal Acreage ,of Taxable Pr,operty in such Final Map area, excluding Acreage classified as Pravisianal Undevelaped U Property, Acreage classified ,or reas,onably expected t,o be classified as Apartment Property ,or N,on- Residential Property, and any Acreage reas,onably expected t,o be classified as Exempt Property in such Final Map area, and (ii) dividing the results in (i) by the t,otal number ,of Single Family Units ,or Multifamily Units reas,onably expected t,o be canstructed within such Final Map area. The resulting qu,otient shall be the Backup Special Tax f,or Facilities far each Assess,or's Parcel ,of Single Family Property ,or Multifamily Property within such Final Map area. The Maximum Special Tax f,or Facilities rate(s) applied in (i) ab,ove shall be the applicable Undevel,oped Pr,operty rate for the Zane in which each Assessor's Parcel is lacated; provided, h,owever, if an Assess,or's Parcel is lacated in twa Z,ones, the Maximum Special Tax f,or Facilities nite applied shall be tIJe I,ower ,of the tw,o Maximum Special Tax f,or Facilities rates. ' , The Backup Special Tax f,or Facilities shall n,ot apply t,o N,oncResidential Property ,or Apartment Property. N,otwithstanding the f,oreg,oing, if Assess,or' s Parcels ,ofDevel,oped Property which are classified ,or t,o be classified as, either Single Family Pr,operty ,or Multifamily Property are subsequently changed ,or m,odified by rec,ordati,on ,of a I,ot line adjustment ,or similar instrument, then the Backup Special Tax f,or Facilities f,or the area that has been changed ,or m,odified shall be recalculated, based ,on the meth,od,oI,ogy ab,ove, t,o equal the am,ount ,of Backup Special Tax far Facilities that W,ould have been generated if such change did nat take place. AGENDA ITEM NO. PAGE to 1 \.f) OF ~~ u City of Lake Elsinore Community Facilities District No, 2005-2 (Alberhill Ranch) Improvement Area C June 30, 2005 Page 8, n 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 andfor 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.: n The Special Tax for Facilities shall be levied Proportionately on each Assessor's Parcel ofD.eveloped Property at up to 100% ofthe applicable Assigned Special Tax for Facilities rates in Table I and Table 2 to satisfy the Special Tax Requirement for . -.- .- Facilities. If additional moneys ~e neededto satisfY the Special Troc 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. . . If additioval moileys are needed to satisfY the Special Tax Requirement for Facilities , after the first two steps have been completed, the kumal 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 Tor Facilities up to 100% of the Backup Special Tax for Facilities as needed to satisfY the Special Tax Requirementfor 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 lIP 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 abo~e, under no circUmstances wiil the Special Tax for Facilities.Ievied against any Assessor's Parcel of Residential Property for which an occupancy permit for private residential use has been issued be in\ireased by more than ten percent as a consequence of delinquency or default by owner of any other Assessor's Parcel within Impro~ement Area C (\ AGENDA ITEM NO. (.Q .. PAGE (oR. OF SE City of Lake Elsinore CommWlity Facilities District No: 2005-2 (Alberhill Ranch) Improvement Area C ' JWle 30, 2005 Page 9 SECTION G PREPAYMENT OF SPECIAL TAX FOR FACILITIES u 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 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 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 arecuiTently available for expenditure to acquire or construct public facilities eligible under CFD No. 2005~2. . . .' '. , "Construction Inflation Index" means the annual percentage change in tiie 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 InJlation Ind~x, shall be another index as determined 'by the City that is reasonably comparable to the Engineering News~R.ecord Building Cost Index for the city of Los Angeles. u , . "Future Facilities Costs" means the CFD Public Facilities minus public facility costs available to be funded through existi~g con,;,truction or escrow acco~ts or runded by the Outstanding Bonds, and minus public facility costs funded by interest earnjngs on.the Construction Fund actually earned prio~ 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 U Assessor's Parcel. The CFD Administrator may charge a reasonable fee for providing this service. . City of Lake Elsinore Community Facilities District No. 2005-2 (Alberhill Ranch). Improvement Area C June 30, 2005 AClENDA ITEM NO. \.. ~ PACE~OF _ 1, Page 10 ('\ 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 fomiula (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 ofprepayinent, the Prepayment Amount shall be calculated as follows: 1. n 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 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 1 for such Assessor's Parcel by the sum of the estimated Assigned Special Tax for Facilities applicabktoall 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 1 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". . 4. n (. Multiply the Bond Redemption Amount by the applicable redemption premium, if any, on the Outstanding Bonds to be redeemed with the proceeds City of Lake Elsinore Connnunity Facilities District No. 2005-2 (Alberhill Ranch) Improvement Area C . June 30, 2005 AGENDA ITEM NO. 'l PAIJE.:J.D.::..OF 1,' Page 11 of the Bond Redemption Amount. This product is the "Redemption Premium." 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." .. , u ,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." 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 ofthe 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 u City of Lake Elsinore Community Facilities District No. 2005-2 (Alberhill Ranch)' Improvement Area C June 30, 2005 - ACENDA ITEM NO. \.0' , , -" . Page 12 PACE----L.!.-OF st'2.,- iIiterest tWid or account Under the Indenture after such first interest and/or. n principal payment. This amount is the "Capitalized Interest Credit." ;.'. , 14. The Prepayment Amount is equal to the sum of the Bond Redemption Amount, the RedempiioriPiemium', the Future Facilities Amount, the Defeasance Cost, and the Administrative Fee, less the Reserve Fund Credit and the Capitalized Interest Credit. , I ' 15. From the Prepayment Amount, the amounts computed pursuant to paragraphs 3,4,10, 12, and 13 shallbe deposited into the appropriate fund as established . uhder the Indenture arid used to retire Outstanding Bonds or make debt service payments. The amount computed pursuant to paragraph 6 shall be . deposited into t1ie Cons~ction Fund. The amourit 'computed pursuant to Paragraph 11 shall be retained by Improvement Area C. The Special TaX for P;blities prepayment amount may be insufficient to redeein a full $5,000 increment of Bonds. In such cases, the increment above $5,000 or integral multiple thereof will be retained in the appropria~e fundestablishedunderthe Indentureto 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 indic~te in the recprds 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 Assessor's Parcel to pay such' Special TaXesJor Facilities shall cease. Notwithstanding the foregoing, no prepayment wiUbe 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 n.,. The Special TaX for Facilities obligation of aD. 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'AOENDA ITEM NO. ( Q , " , . , PAOE 7'J. OF K~ City of Lake Elsinore Community Facilities District No. 2005-2 (Alberhill Ranch) , Improvement Area C June 30, 2005 Page 13 The Partial Prepayment Amount shall.be calculated acc.ording to the following formula: , . u PP = (Pa-A) x F +A , " The terms above haye the following meanings: l. ' PP = the Partial Prepayment Amount. . Pa = the Prepayment Amount calculated according to Section G. F = . the percent by which the owner oftheAssess()r's Parcel is partially prepaying the Special Tax for Facilities obligation. A = the Administration Fee calculated according to S~ction G. . . The owner of any Ass~ssor'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 beprepaid. 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 ~espect 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 indicatein 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 ofthe Special Tax for Facilities li~m on such Assessor's.Parcel, and the obligation of U 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 CFDNo. 2005c2 B.onds have been paid; (ii) all authorized facilities ofCFD No. 2005-2 have been acquired and all reimburs.ements to the developer have been paid, (iii) no delinquent Special Taxes for Facilities remain uncollected and (iv) all other obligations ofhnprovement Area C have been satisfied. .' SECTION J ACENDA ITEM NO. \ P-i,)- PAGE..13-0F City of Lake Elsinore Community Facilities District No. 2005-2 (Alberhill Ranch) Improvement Area C June 30, 2005 Page 14 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 42.48 Acres for Zone I and 8.50 Acres for Zone 2. N~twithstanding the above, the City Council shall not classity anAssessor'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 2will 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 C may collect Special Taxes ,". l for Facilities at a: different time or in a different manner if necessary to meet its financial obligations, . . . i and milY covenant to foreclose and may actually foreclose on delinquent Assessor's Parcels as permitted by the Act. : . ' . . .-: SECTIONL, 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. 0:' "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. City of Lake Elsinore Community Facilities District No. 2005-2 (Alberhill Ranch) Improvement Area C AGENDA ITEM NO. Co PAGE~OF )?1, June 30, 2005 ' Page'I5 "Maximum Special Tax for Services" means the maximum Special Tax for Services that can be U levied by Improvement Area C in any Fiscal Year on any Assessor's Parcel.. "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. "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. I "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 ally 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 ac~epted and maintained durillg 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. u 1. Rate and Method of Apportionment of the Special Tax for Services Commencing Fiscal Y ear 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 D'eveloped 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. ",I,' 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 Special Tax for Services , ACENDAITEP., NO.~U ' PACE 7S~ City of Lake Elsinore Community Facilities DistrictNo. 2005-2 (Alberhill Ranch) Improvement Area C Juno3O, 2005 . ~ '.-. Page 16 n n n 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 ofthe 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 C 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 ofthe 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 ,ofthe Special Tax that is disputed. The CFD Administrator shall promptly review the appeal" and ifnecessary, 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 ofthe City Council shall be final and biriding as to ' all persons. EXHIBIT "A" AGENDA ITEM NO. C 0 PAGE..:1.!a-OF g'l June 30, 2005 City of Lake Elsinore Connnunity Facilities District No. 2005-2 (Alberhill Ranch) Improvemerit Area C Page 17 CITY OF LAKE ELSINORE AND CFD NO. 200S-X CERTIFICATE u I. Pursuant to Section _ ofthe 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 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 andCFD 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: u CITY OF LAKE ELSINORE " By: Date: CFD Administrator COMMUNITY FACILITIES DISTRICT NO. 2005-X OF THE CITY OF LAKE ELSINORE By: Date: EXHIBIT "B" ZONE MAP ACENDA ITEM NO. <-. n U PACE 77 OF ~ '1, City of Lake Elsinore Community Facilities District No. 2005-2 (Alberhill Ranch) , Improvement Area C June 30, 2005 Page 18 (\ (\ (\ N I l() ,0 O:W Nt:i -0 0" Zjfi ~,6i Q' " ,.\:l$' cr:lL:!'5:Viz_" fLb,~:;f'_~8, ~ fI]::i ~-;; .,~:D, ",~':~Q' 'W "J..L." -:;0' 1\ :BO!~>::; N -' "_Zw, t:,.>c- ":3!c(- ~'t:'-'gt2i. UU <{, lL.W I r=>- z-,lL. =>,9 ::;i' :0;;' 0' (.) , ,u ~ ~ ""'. .,~~,~. ~ [ ~ -=::1l II '~'~'4 "~ ~ ",=\ .is :' '~ , [i:l 70 ' ~ ~ - ,..., g~ ~ "I" d ~ "- ~ , *<& .~ <>",~ , 4,;> ~I i~ ~ -it " 'W z o N . '8< ~! ~ XI g ~.5"a l!;~~ j~I~: ;~'b'ij ~o, ~f"': ~.J;-'- h E I 8 8 ~ fij.".t: .::;;.~ ~~ fY'~ '!;. AGENDA ITEM NO.~ PAGEJLOF sn City of Lake Elsinore Community Facilities District No, 2005-2 (Alberhill Ranch) Improvement Area C June 30, 2005 Page 19 RESOLUTION NO. 2005- Coy u RESOLUTION OF INTENTION OF THE CITY COUNCIL OF THE . CITY OF LAKE ELSINORE TO INCUR BONDED INDEBTEDNESS IN THE AMOUNTS NOT TO EXCEED $28,000,000, $36,000,000 AND $26,000,000. WITHIN IMPROVEMENT AREA A, IMPROVEMENT AREA B AND IMPROVEMENT AREA C, RESPECTIVELY, OF THE PROPOSED CITY OF LAKE ELSINORE COMMUNITY FACILITIES DISTRICT NO. 2005-2 (ALBERHILL RANCH) WHEREAS, the City Council (the "Council") of the City of Lake Elsinore (the "City'~) has heretofore adopted Resolution No. 2005- ~..;l.., stating the Council's intention to form Community Facilities District No. 2005-2 (Alberhill Ranch) (the "CFD"), pursuant to the Mello-Roos Community Facilities Act of 1982, as amended, (the "Act"), to finance 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 are necessary to meet increased demands placed upon the City as a result of development or rehabilitation occurring within the U proposed CFD (the "Facilities"); and WHEREAS, the Council has heretofore adopted Resolution No. 2005- designating portions of the CFD as Improvement Area A, Improvement Area B and Improvement Area C (each an "Improvement Area" and collectively, the "Improvement Areas"); and WHEREAS, in order to finance the Facilities it is necessary to incur bonded indebtedness in the amounts not to exceed. $28,000,000, $36,000,000 and $26,000,000 Jor Improvement Area A, Improvement Area B and Improvement Area C, respectively, the repayment of which is to be secured by special taxes levied in accordance with Section 53340 et seq. of the Act on all property within the respective Improvement Areas, other than those properties exempted from taxation as provided in the respective rate and method of apportionment attached as Exhibit B to Resolution No. 2005- NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS: U 45632497.1 ACENDA ITEM NO. \JJ PACE~OF ~\ (\ Section 1. The above recitals are true and correct. ' Section 2. It is necessary to incur bonded indebtedness within each of Improvement Area A, Improvement Area B, and Improvement Area, C of the proposed CFD in the amounts not to exceed $28,000,000, $36,000,000 and $26,000,000, respectively, to finance' the costs of the,' Facilities for each Improvement Area. Section 3. The indebtedness will 'be incurred for the purpose of financing the costs of designing, constructing and acquiring the Facilities, the acquisition of necessary equipment and property therefor and fulfilling contractual commitments and carrying out the powers and purposes of the CFD, including, but not limited to, the financing of the costs associated 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. Each Improvement Area shall pay for its bonded indebtedness. (\ Section 5. It is the intent of the Council to authorize the sale of bonds in one or more series, in the maximum aggregate principal amounts not to exceed $28,000,000, $36,000,000 and $26,000,000 for Improvement Area A, Improvement Area B and Improvement Area C, respectively, at a maximum interest rate not in excess of 12 percent per annum or such rate not in excess of the maximum rate permitted by law at the time the bonds are issued. 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 6. A public hearing (the "Hearing") on the proposed debt issue shall be held August 23, 2005 at 7:00 p.m. or as soon thereafter as practicable, at the chambers of the Council, 130 S. Main Street, Lake Elsinore, California 92530. n Section 7. At the Hearing at the time and place set forth above, any interested persons, including all persons owning land within the proposed CFD, may appear and be heard at the Hearing. Section 8. The proposition to incur bonded indebtedness in the maximum aggregate principal amounts not to exceed $28,000,000, $36,000,000 and' $26,000,000 for Improvement Area A, Improvement ,Area B and Improvement Area C, respectively, shall be submitted to the qualified electors of the respective Improvement Area. A special community facilities district election shall be conducted on August 23, 2005. The special election shall be conducted by hand 45632497.1 2 AOENDA ITEM NO. PAOE ~O U>, OF g3 delivered or mailed ballot election.' The ballots shall be returned to the office of the election officer no later than 11 :00 o'clock p.m. on August 23,2005. U Section 9. The Clerk is hereby directed to publish.a copy of this resolution, which shall serve as notice ("Notice"), of the Hearing and the special bond election, pursuant to Section 6061 of the Government Code in a newspaper of general circulation in the proposed CFD. Section 10. The Clerk may send a copy of the Notice of the Hearing by first-class mail, postage prepaid, to each registered voter and to each landowner within the proposed CFD as shown on the last equalized assessment roll. u " ~ ' , u 45632497. J 3 ACENDAITE. M NO.u \ ~ PAGE.-!LOF '7, (\ (\ n PASSED, APPROVED AND ADOPTED this 2005. ATTEST: City Clerk ofthe City of Lake Elsinore APPROVED AS TO FORM: Barbara Leibold, City Attorney 45632497.1 , . day of CITY OF LAKE ELSINORE By: . Title: Mayor . " 4 ACENDA ITEM NO. V) PAGE ~rl. OF sn STATE OF CALIFORNIA )ss. ) ) u COUNTY OF RIVERSIDE I, , 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; NOES: ABSENT: ABSTAIN; , By: City Clerk of the City of Lake Elsinore u 45632497.1 U ACENDA ITEM NO. "--.Q PAGE ~ 1, OF K2;, (1 (1 ('. CITY OF LAKE ELSINORE REPORT TO CITY COUNCIL u TO: MAYOR AND CITY COUNCIL FROM: ROBERT A. BRADY, CITY MANAGER DATE: JULY 12, 2005 SUBJECT: RESOLUTION OF INTENTION TO ESTABLISH COMMUNITY FACILITIES DISTRICT NO. 2005-4 (LAKEVIEW VILLAS) AND RESOLUTION OF INTENTION TO INCUR BONDED INDEBTEDNESS BACKGROUND On October 14,2003 and March 9, 2004, City Council approved the two tentative tract maps for the Lakeview Villas development. The City's finance team has met with the developer and their financial consultants to discuss the formation of a U Community Facilities District for the project. DISCUSSION The developer plans to build 155 multi-family homes. Special Tax The average residential special tax is estimated at $2,875. The annual CFD tax amount, when combined with all other property taxes applicable to the project, is estimated to be approximately 1.84%, which is within the 2% City CFD guidelines. u ACI:NDA ITEM NO. "7 PACE-4-OF ..3..:l- (\ (\ (\ REPORT TO CITY COUNCIL JULY 12, 2005 PAGE 2 Facilities The proposed facilities list is attached. The list totals $7,036,731. . The list contains $2,325,155 of City of Lake Elsinore impact fees including MSHCP of $255,905 and TUMF of$I,123,440. The list also includes $353,347 of City of Lake Elsinore storm drain improvements, and $4,358,229 ofEVMWD impact fees and improvements. Bond Issue In order to finance the facilities it is necessary to incur bonded indebtedness. The not to exc"eed amount is $9,000,000. . FISCAL IMPACT The administrative cost to the Citywillbe paid by the $50,000 deposit made by the developer. . ..' Repayment of the bonds are secured by the special taxes levied on all property within the district, other than those properties that are exempt as provided in the respective rate and method of apportionment. The City will, however, be faced with a long-term obligation going forward to maintain the City public facilities constructed as part of the development. PROCESS The formation of the Mello-Roos Community Facilities District requires a specific process as outlined in the attached resolution to establish a CFD. The City Council will need to hold a public hearing on the formation of the District and for the approval of the bond documents. At the public hearing the participating property owner will have the opportunity to vote. The public hearing can be scheduled for August 23, 2005. ACENDA ITEM NO. PAOE;) 7 OF 37 . REPORT TO CITY COUNCIL JULY 12, 2005 PAGE 3 ' u RECOMMENDATION It is recommended that City Council: , 1. Adopt Resolution of Intentions 2005 :,-----c to Establish CFD 2005-4 (Lakeview Villas) and 2005 - ---,- to Incur Bonded Indebtedness 2. Schedule the public hearing on the District Formation for August 23, 2005 PREPARED BY: ~~~ MATT N. PRESSEY /" ,.', DIRECTOR OF ADMINISTRATIVE SERVICES APPROVED FOR' AGENDA BY: U -, <'.1' ," ;, " '. U f AGENDA ITEM NO. PACE 3 OF 37 n n. (\ EXHIBIT B . City of Lake Elsinore CFD No. 2005-4 (Lakeview Villas) . Proposed CFD Authorized Fees and Facilities List Lakev;ew Villas [Q)~@~ Agency Description of Facilities and Fees Per Unit Total City of Lake Elsinore .lmpa~.Fees Pari< Capital Improvement Plan Fee (Single Family) library Capital Improvement Plan Fee Traffic Impact Fee (Multifamily) TUMF Fee (a) .. Railroad Canyon Road Benefit Reimb.' District Fee (estimate) (b) Fire Mitigation Fee MSHCP Fee (Single Family) (c) $1,600 150 902 7.248 3,300 150 1,651 $248,000 23,250 139,810 1,123,440 . 511,500 23,250 255,905 To~al Cily Fees $15,001 $2,325,155 City of Lake Elsinore - Improvements Storm Drain System'lmprovements -20% Contingency on construction Storm Drain Plan Check Storm Drain Permit and Inspection Consultant Fees $1,388 $215,065 278 43,017 42 6,453 73 11,292 500 77,500 $2,280 $353,347 Total City-Improvements EVMWD - Fees and Improvemen~s - Water Connection Fee for 3/4" Meter (d). Water Connection Fee for 1 1/2" ($15,991 x 6 irrigation meters) (d) Water Plan Check Water Inspection Sewer Connection Fee Sewer Plan Check Sewer Inspection. Water System Improvements 20% Contingency on construction SewerSy&emlmprovemems 20% Contingency on construction Consultant Fees $5,429 $841,495 619 95,948 289 44,729 923 143,132 4,755 737,025 87 13,552 280 43,388 8,826 1 ,368,033 1,765 273,607 2,370 367,370 474 73,474 2,300 356,500 $28,118 $4,356,229 $45,398 $7,036,731 Total EV~VVD Fees and Improvements GRAND TOTAL ~ (a) Single Family Residential TUMF fee is $7,248 per unit Multifamily Residential TUMF fee of $5,021 per unit only applies if greater than ejght(8) units per acre. (b) Based on estimate provided by City Engineering Department (c) Single Family Residential MSHCP fee of $1 ,651 per unit is applicable due 10 density of less than eight (8) units per acre. (d) Potential Fee Credit available for this fee (to be determined)_ -, AGENDA ITEM ;0. '2., 7 PAGE OF EXHIBIT C em' OF lAKE ELSINORE PROPOSED COMMUNITY FACILITIES DtSTRJCT 2005-4 La/(evlewvillas . CFD Bond Sizing and Total Tax Rate Analysis June 29, 2005 u I. Home Prices and Combined Tax Rates: Plan Home Size for Special Tax Categories (Sq. Ft.) Estimated Home Size (~, Ft.) Estimated Home Price 8sinore Lakeview Vinas Plan' Plan' Plan 3 Plan . Ptan4b Wid. _AvgJTotal <1,250 1,~1,750 1,250-1,750 >1,750 >1,750 1,176 , 1,726 ' 1,681" 1,763 1,763 1,594 $305,870 $343,470 $354,919 - $366,368 $412,164 $344,392 $3,059 $3,435 ~,549 I $3,664 $4,122 $3,444 18 20 21 21 2. 20 23 23 23 I 23 23 23 4 4 4 4 4 4 20 20 20 20 20 20 1 1 1 1 1 1 9 9 9 9 9 9 7 7 7 7 7 7 156 156 156 156 156 156 121 121 121 .121 121 121 2,546 2,901 2,901 3,117 3.117 "2875 $5,964 $6,697 $6,813 $7,144 $7,604 $6,680 1.95% 1.95% 1.92% 1.95% 1.84% '.94" 37 38 38 39 3 155 $94,202 $110,238 $110,238 $121,563 - $9,351 $445,592 . . $382.356 ~Valorem Tax Rate (1.0000%) Metro Water West fa) Flood Zn 3 Benefit AD lb) NPDES Flood Control (StollThVaterlCleanwater) (e) City of lake ElsinOfe lLMD rd) N.W. Mosquito & Vector Control District (e) MY\{) Standby West (f) CSA 152 (storm drain maintenance) (estimate) (g) City CFD 2003-1 (Police, Rre, and Paramedic Services) (h) Proposed City CFD - Special Tax for Services (i) Proposed City CFD - Special Tax for Facilities 0) Total Ann. Amount Collected v&h Prop. Taxes Total Annual Property Tax Rates as % of Home Price Unit Mix Total Oty CFD-Annual Special Tax Collections (1) Total Annual Special Taxes for Bonding (((1) - $25,000 Annual Admin. Charge) ---110% Coverage) II. CFD Bond Sizing & Bond ProCeeds: Bond Amount (5.9Q% Interest, 30 Year Term with 29 Year Amortization, and 2% Escalation) Underwriter Discount (2.00%) Rese/VeFund (10% of Bond Amount) Capitalized Interest (12 months) Allowance for Incidental Costs (3.98%) Net Bond Proceeds 1$31.684 per unit) [Q)[[(IDVU $6,286,198 (125,n4) U (628,620) . (370,886) (250,000) $4,910.968 Footnoms' fa) A tax of _00580% is charged by the Metropolitan Water District to all parcels 'Nithin its boundary to pay debt service for outstanding bonds. fb) An assessment is levied by Riverside County Flood Control Assessment District Zone 3 at a rate of $23.46 per unit. (e) This amount represents an assessment of $3. 75 charged by Riverside County Flood Control District for stormwater management. Id) lake Elsinore llMD charges $24.91 per EDU for city street lighting and landscape maintenance. Multifamily units are considered .8 EDU. (e) An assessment is levied by the NW. Mosquito & Vector Control District of$1.38 per multifamily unit for mosquito abatement. (1) This amount represents MVvO Standby Charge of $9.22 per acre, or $9.22 per parcel if less than one acre. . (g) This amount represents an estimated charge. of $7.00 per parcel assessed by County Service Area 152 for storm drain maintenance. (h) City of lake Elsinore law enforcement, fill!, and paramedic services CFD 2003-1 for fiscal year 2005-06 is $156 per multi-family unit (i) This amount represents the estimated annual assigned special tax for the proposed City CFD for Services v.ttich maintains parks, open space, and stoml drains, SUbject to 2% annual escalation. OJ This amount reprasents the est!rriated annual assigned special tax for the proposed CFD for Facilities; subject to 2% annual escalation. Private streets and landscaping 'Nin be maintained through an HOA. u ACENDA ITEM NO. "CE 4') -, OF 37 n I I I: " (\ (\ EXHIBIT D CITY OF LAKE ELSINORE PROPOSED COMMUNITY FACILITIES DISTRICT Lakeview Villas CALCULATION OF UNDEVELOPED PROPERTY TAX [Q) uCIDV(s I. Calculation of Net Taxable Acres Tract Gross Acreage Less: Street Lots, Landscape Lots, Park Lots, HOA Property, Other Net Taxable Acres (I.e. Building Foolprtnl area of Condominium Units) (based on Land Use Areas Exhibit prepared by PBS&J) II. Calculation of Undeveloped Property Tax Rate Total Developed Prop. Rev. from EXHIBIT C Net Taxable Acres Less: Contingency Factor (5.5%) Net Taxable Acres (Adjusted) Undeveloped Property Tax Rate per Acre 27.90 (24.20) 3.70 $445,592 3.70 (0.20) 3.50 $127,439 AGENDA ITEM NO. PAGE 1:3 7/112005 ., OF 7.,7 D ..._".....n....._--...,. (-_.....,.........~ ("'AC) ___nunun__U.' , , , , , , , , , , , """" 8t.BTtlTALIIfEM I!'l.~::i:d ~--"':;::'..Y""'l -......" \..,"') IW,i:'/;l'i/ .....""........""NIIIOLNlD5tN'm..._ ,-_.....,....(."'-> ==SQn. (7.'''') IHWhTI.=::::=::",':':.~ .,...:uso.n (<.lAC) a _....-'.... l__........."...._l '.,,OJ> so.'~ C1' AC) ~1OT""_ '.''').73'00 n.(1UI<C) 1~~n<H1 I~~I ,,,,,_..It..-w,,,_~Sl'''' (.....r_....._l lOJ,77fSCI.n. (UN:) ,n-~.IO(t'''''._''''''''''''''' (___,~".""HOA) (11.'''''1 ~....~ 1~'.99. SQ. rT. (J~ OC) ,~ +. . ACENDA ITEM NO. PACE I I OF ~7 I ! LAKEVlEW YrLLAS U. ,:'::-:!. LANDUSE AREAS EXHIBIT - VICINI!! MAP ~ ----- .- ::-.:.: :=., ..--- .-- ~ JVNln.2DO' PROPOSED'BOUNDARY OF COMMUNITY' FACILITIES DISTRICT No. 2005-4 OF THE CITY OF LAKE ELSINORE (LAKEVlEW VILLAS) COUNTY OF RIVERSIDE, STATE 'OF CALIFORNIA ("\ r-------~ I I I I I I I I ,I __.:J SEE DETAIL "K L____ ("\ SEE DETAIL' "6" --~,~~----:l I I I I I I I I I I I I I I I I I A.P.N. 363-240-005 363-240-00l5 Je3-240-oo7 383-240-010 3&3-240-011 Ji:~:8:81i S3:!:8:81. 363-2>>-001 363-2>>-002 363-250-003 '83-250-004 363-250-005 363-250-006 363-250-007 363-250-008 383-250-009 363-250-010 363--250-011 363--250-012 r I I I I I I I I I I I I I I I I I I t.______..:...___J ! SCAl.[: '--100' n.m.. tHE 0fJ'Ia: OF H cnvCURk OF lflt OTl'OFLAKta5lHOJltE.lHS---1JAYOF _ QTYa.ERK W' lHEOTYOfLAKED.SlNllII[ IHOlE8'l'CER7FYfHAT'lHEWlHlN_~~'IH[:PRCIPO:SI:!IilIDl.lHOAIfIESOI' lKECJTYOFLAKE"b.$INClIlI; =::r~~B~~~~lvag~~~~~~ lHERfOF',HEtDOHTHE_DAYOF 2005. BYllSRE:$OUIDOJrfHoo. OTYaDlII' OF lHE O'TYOFLNa: n.slHCRt fll..[DTHlS_IMYOF_2005. 'ArnfCHtUtOF_O'a.OC:lL-.W.fNBOOlIt....-OF..AM OF ASStSSMOIT NIIO COWlINtTY f'AClU'IES DISlRICT$ PACE ~~ AS INSfRWEHr H0- W 'fH[ oma: OF IN( COUNTY RECCRr.J[W If >>E" COUHlY OF RnIOISlDr. STAW OF CAl.FORMA. CCIUIfTY RE~ W 1HE QJUNJY CIF 1fl0SlD( fIEL-- ('" RD'ERD/Ct.1J.lE 1lI~,COUNlY AsstssoR'S.wAP$ FOR A DETAlLED DDCIlF''IION OF PAACQ. U'I[S ANO 0I0IENSI0NS _HARRIS a: ASSOCIATES U~"""IJD .....(&..,. ' (NI) ~ .'.11 (NI) I56-JIM ."'I/fIO ~~ II. .~~ ~W <~ CD,; Z w ~ 1JI000TY WAf> NO ..... WlttlIl. """"""""'" PROPOSED BOUNDARY MAP COlDIDwally ,..cWU.. m.tncl No. 2OOl5-4 of the Clt,J of Lab BleJnOR (Lakm.. VUlu) COOIftr ClII" 1lIV:IIlSDd. QUPOJINU IUet J or I ......... :lIlll:lI4~_ ~ -- PROPOSED BOUNDARY OF COMMUNITY FACILITIES DISTRICT No. 2005~'4 OF THE CITY OF LAKE ELSINORE. (LAKEVlEW VILLAS) COUNTY OF RIVERSIDE; STATE OF CALIFORNIA ~ . ~ i:I 8 L z N &5"37'2.- . ~.21" /rt 81"27'20" E 30.00' N ~'"03. W 4UO' DETAIL "A" SCAl..E:. ,"~5d z ~ ~ z . " ~ l.GEIlll """"."ON" DEl AIL "S" PROPOSED BOUNDARY MAP _HARRIS 6: ASSOCIATES UfMalllot.....s.-.151 ......Uthl.. (NI) ___. r.... (M)__3Ift CoaUlumlt.J P~WU.. Dbtzokt No. 2OOCi-4- of the CiV of Lake llaDore C......... VUWo) ODIJftt1'OI'~c.wromu.t. 8IIM\ a 01' . .....". . ~~- .. -- u u I I I j ~~ I~ ~I iIi'f ~I RESOLUTION NO. 2005- 0 if ,.:, (\ 1 ) RESOLUTION OF INTENTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE TO ESTABLISH CITY OF " '. LAKE ELSINORE COMMUNITY FACILITIES DISTRICT NO. 2005-4 (LAKEVIEW VILLAS)' WHEREAS, the City Council (the "Council") of the City of Lake Elsinore (the "City") has received a petition (the' "Petition") requesting the institution of proceedings for (i) formation of a community facilities district (the ."CFD") pursuant to the Mello-Roos Community Facilities Act of 1982, as amended (the "Act"), (ii) authorization ofissuance of bonds for the CFD, and (iv) establishment of an appropriations limit for the CFD; and . (\ . '. WHEREAs; the Council has determined that the Petition complies with the requirements of Government Code Section 53318(c) and 'now intends to initiate such proceedings; and . WHEREAS, it is the intention of the Council to finance parks, open space . and storm drains maintenance services that are in addition to those provided in the territory within the.CFD prior to the fohnation of the CFD imd do not supplant, services already available within the territory proposed to be included in the CFD through the formation of the CFD subject to the levy of a special tax to pay for such services, being approved at an election to be held within the boundaries of the CFD; and . . WHEREAS, it is also the intention of the Council to finance the acquisition and construction of the Facilities (as defined below) or any combination thereof through the formation of the CFD, subject to the authorization of bonds and the.' levy of a special tax to pay lease payments, installment purchase payments or other payments, OI:.principal and interest on bonds, being approved at an election to be held within the boundaries of the CFD;' . NOW, THEREF0RE, THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE DOESHEREBYRESOL VE; DETERMINE AND ORDER AS FOLLOWS: , Section 1. The Council hereby determines to institute proceedings for. the, formation of a COmmunity [acilitiesdistrict under the terms of the Act. The exterior boundaries of the CFD are hereby specified and described to be as shown (\ on that certain map ,now on file in the office of the Clerk entitled "Proposed 45632565.1 AGENDA ITEM NO. PAGE-Lf) ( OF 37 Boundary of Community Facilities District No. 2005-4 of the City of Lake . Elsinore (Lakeview Villas)," which map indicates by a boundary line the extent of U the territory included in the proposed community facilities district and shall govern for all details as to the extent of the CFD. On the original and one copy of the map of such CFD on file in the City Clerk's office, the City Clerk shall endorse the certificate evidencing the date and adoption of this resolution. The City Clerk shall file the original of such map in her office and, within fifteen (15) days after the adoption of this Resolution, the City Clerk shall file a copy of such map so endorsed in the records of the County Recorder, County of Riverside, State of California. Section 2. The name of the proposed CFD shall be "City of Lake Elsinore' Community Facilities District No. 2005-4 (Lakeview Villas)." . Section 3. Except where funds are otherwise available, it is the intention of the Council to levy annually in ac;cordance with procedures contained ip the, Act a special tax (the "Services Special Tax") sufficient 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 theCFD prior to the formation of the CFD and do not supplant services already available within the territory proposed to be included in theCFD, 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 ~ill be se~ured by recordation of a continuing lien against all non-exempt 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. . . . . U " i . The S~rvices Special Tax is apportioned to each parcel on the foregoing basis pursuant to Section 53325.3 of the Act. . Section 4. 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 and EVMWD Capital Facilities Fees, public storm drain system improvements,. EVMWD sewer and water facilities, and related costs including designs, inspections, professional fees, annexation fees, connection fees U 45632565.1 2 / AGENDA ITEM NO. PAGE-1L-OF .~ 7 (\, n (\ and acquisition 'costs (the' "Facilities"). Such Facilities need not be physically located within the CFD. Section 5. Except where funds are otherwise available, it is the intention of the ' Council to levy annuallyin accordance with procedures contained in the Act a special tax '(the "SpeciaI'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" of reserve funds, the remarketing, credit enhancement and liquidity fees, the costs of administering the levY and 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 qf the ,tax levy and bond issue. ,The Special Tax will, be secured'byrecordation ofa continuing lien against all non-exempt real property in the CFD. In the fir,styear in which such a Special Tax is levied, the levy ,shall , include a.~,um 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 ~d 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 Cf.D, the demand that each parcel will place on the Facilities aI).d the benefit (direct and/or indirect) received by each parc~l 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 becorpe for any. reason exempt, wholly or partially, from the levy of the ,Special Tax, the Council shall, on behalf of the CFD, increase the levy to the extent necessary upon the remaining property with,in the CFD which is not delinquent or exempt" in order to Yield the. required payments, subject to the maximum tmc Under no circumstances, however, shall the Special Tax levied against any parcel used (or 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. 45632565.1 3 ACENDA ITEM NO. PACE~ -, OF 37 ~ Section 6. , ,The CounciJ, hereby finds ,that the proposed ,Facilities are necessary to meet increased demands put upon the City as a result of the ne\y: U development or rehabilitation within the proposed CFD. Section 7. A public hearing (the "Hearing") on the establishment of ' the CFD and the proposed rate and method of apportionment of the Services Special Tax and the Special Tax shall be held on August 23, 2005, at 7:00 p.m., or as soon thereafter as practicable, at the chambers of the Council, 1-30 S. Main Street, Lake Elsinore, California 92530. Section 8. At the time and place~et forth above for the hearing, any interested person, including all persons owning lands or registered to vote within the proposed CFD, may appear, and be heard. Section 9.' Each City officer 'who is or will be responsible for the Services and the Facilities to be financed by the CFD, if it is established; is hereby directed' to study the proposed CFD and, at or before the time of the above~mentioned Hearing, file a report with the Council, and which is to be made a part of the record of the Hearing, containing it brief descriptio~ of the Services and the FaCilities by type which will iri his or her opinion be reqUired to adequately meet the needs of ' the CFD and his or her estimate of the cost of providing the Services and the Facilities: The City Manager is directed to estimate the fair and reasonable cost of U all incidental expenses, including the cost ofplanriing and designing the FaCilities to be financed pursuant to'the Ad, including the cost of environmental evaluations of such facilities, all costs associated with the creation of tlie'CFD, issuance of bonds; determination of the amount of any special taxes, collection of any special' taxes, or costs otherWise incurred in order to carry out the authorized purposes of the City with respect to the CFD, and any other expenses incidental to the construction, completion and inspection of the authorized work to be paid through the prop6sed finapcing.' " ",,' " '"" ' , Section 10. The 'City may accept advances of' furids from any sources, ',' including private persons or private entities, and is authorized and directed to use such funds for any authorized purpose, including any cost incurred by the City in creating the CFD. The City may enter irito an agreement to repay all of such funds as are not expended or committed for any authorized purpose at the time of the election on the levy of the SerVices Special Tax and the Special Tax, if the proposal to levy such tax should fail, and to repay all of such funds advanced if the levy of the Services Special'Tax and the Special Tax shall be approved by the' qualified electors ofthe'C::FD.' ti' U 45632565,1 4 ACENDA ITEM NO. PACE~.~ -, OF ~/ (\ (\ (\ Section 11. The City Clerk is hereby directed to publish a notice ("Notice") of the Hearing pursuant ,to Section 6061., of the Government Code in a newspaper of general circulation published in the area of the proposed CFD. Such Notice shall contain information set forth in Section 53322 of the Act.' Such publication shall be completed a(Ieast 7 days prior to the d~te of the Hearing. Section 12. The Clerk may send a copy of the Notice by first-class mail, postage prepaid, to each registered voter and to each landowner within proposed CFD as showrt on the last equalized assessment roll. Said mailing shall be completed not less than fifteen (15) days prior to the date of the Hearing. Section 13. Pursuant to Section 53344.1 of the Act, the Council hereby reserves to itself, in its sole discretion, the right and authority by subsequent resolution to allow any owner of property within the CFD, subject to the provisions of Section 53344.1 of the Act and those conditions as it may impose, and any applicable prepayment penalties as prescribed in the bond indenture or comparable instrument or document, to tender to the CFD treasurer in full payment or part payment of any installment of the special taxes or the interest or penalties thereon which may be due or delinquent, but for which a bill has been received; any bond or other obligation secured thereby, the bond or other obligation to be taken at par and credit to be given for the accrued interest shown thereby computed to the date of tender. Section 14. The voting procedure with respect to the establishment of the CFD and the imposition of the special tax shall be by hand delivered or mailed ballot election. , 45632565.1 5 -, ACENDA ITEM NO. PACE~OF 37 . PASSED, APPROVED AND ADOPTED this . ,2005. ATTEST: CITY OF LAKE ELSINORE By: Title: Mayor . . day of City Clerk of the CitY of Llike Elsinore. . . APPROVED AS TO FORM: Barbara Leibold, City Attorney 45632565.1 6 ACENDA ITEM NO. ( PACE.-15-oF 37 u u u STATE OF CALIFORNIA ) (\ ) ss. COUNTY OF RIVERSIDE ) . I, , 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 itwas so adopted by the following vote: AYES: NOES: ABSENT: ABSTAIN: By: City Clerk ofthe City of Lake Elsinore (\, (\ 45632565.1 AGENDA ITEM NO. I PAGE-ik-OF .3 7 EXHIBIT A u RATE AND METHOD OF APPORTIONMENT ., u u . 45632565.1 ACENDA ITEM NO. f PACE-1.1-0F:~ 7 ('1 ('1 (\ EXHIBIT RATE AND METHOD OF APPORTIONMENT FOR. COMMUNITY FACILITIES DISTRICT NO. 2005~4 OF THE CITY OF LAKE ELSINORE (Lak~view Villas) The following sets forth the Rate and Method of Apportionment for the levy and collection of Special Taxes in the City of Lake Elsinore Community Facilities District No. 2005-4 (Lakeview Villas) ("CFD No. 2005c4"). The Special Tax shall be levied on and collected in CFD No. 2005'4 each Fiscal Year, in an amount determined through the application of the Rate and Method of Apportiomnent described below. All ofthe real property within CFD No. 2005-4, 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 are; d an Assessor's Parcel as shown on an Assessor's Parcel Map, or if the land area is not shown on ari 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 Comm~ities Fa\;iiitiesActof 1982, as amended, b~ing Chapter 2.5, Part I of Division 2 of Title 5 of the Govermneni Code of the State.ofCalifomia. "Administrative Expenses~' means the following actual or reasonably estimated costs directly related to the administration of CFD No. 2005-4: the costs ofconiputing 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 Spe~ial Taxes fur Facilities to the Trustee; the costs of the Trustee (including legalcounsel) in the discharge of the duties required of it under the Indenture; the costs to the City, CFD No. 2005-4 or any designee thereof of complying with arbitrage ~ebate requiremerits; the costs to the City, CFD No. 2005-4 or any designee thereof of complying with disclosure requirements of the City, Cm No. 2005-4 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 ofthe City, CFD No. 2005-4 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 ~hall also include amounts estimated by the CFD Administrator or adv!llced by the City or CFD No: 2005-4 for any other administrative purposes ofCFD No. 2005-4, including attorney's fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes. City of Lake Elsinore Connnunity Facilities District No. 2005-4 (Lakeview Villas) . June 29; 2005 -, ; d?gel.-." i AGENDA IlEM NO. . PAGE \ q., "Apartment Property" means all Assessor's Parcels of Residential Property on which one or more Apartment Units are constructed. U "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. "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, "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, "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 U banks, other financial institutions, private businesses, or individuals, or long-term contracts, or any refunding thereof, to which Special Taxes for Facilities within CFD No. 2005-4 have been pledged. "Building Square Footage" or "BSF" means the square footage of assessable intemalliving space, exclusive of garages or other structures not used as living space, as d~termined by reference to the building permit application for such Assessor's ParceL "Calendar Year" means the period commencing January 1 of ~y year and ending the following December 31. . . " . , "CFD Administrator" means an official of the City, or, designee thereof, responsible for .(i) determining tlie Special .Tax Requiretpent for. Facilities, (ii) determining the Special Tax Requirement for Services, as defined in Section L, as applicable, and (iii) providing for the levy 3!ld collection of the Special Taxes. . , . "CFD No. 2005-4" means Community Facilities District No. 2005-4 (Lakeview Villas) esiablished by the City under the Act. . "City" means the City of Lake Elsinore. "City Council" means 'the city Council ofthe' City ofLak~ 'Elsinore,' acting as tIie Legislative Body of CFD N,o, 2005-4, or its designee.,' AGENDA ITEM NO.~ ~L PAr.,,'lq~ City of Lake Elsinore June 29~ Community Facilities District No. 2005-4 (Lakeview Villas) ji Page 2 " "County" means the Co~ty of Riverside. (\ "Developed Property" means all Assessor's Parcels of Taxab]e Property for which a building pennit for new construction was issued on or before May 1st preceding the Fisca] Year in which the . Special Tax is being levied. "Exemp{Property" means all As~essor'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 buiiding pennits may be issued without further subdivision. "Fiscal Year" means the period commencing on.Ju]y ] of any year and ending the following June 30. "Indenture" means theindenture, fiscal agent agreement, resolution or other instIuinent pursuant to . which Bonds are issujjd; 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 Tab]e 1 of Section D: (\ "Lot" means an Assessor's Parcel for which a building pennit has'or may be issued for the purposes of constructing a Sing]e'Fami]yUnit. ..' "Maximum Special Tax for Facilities" means the maximum Special Tax for Faci]ities, detennined . in accordance with Section C, that can be levied by CFD No. 2005-4 in any Fiscal Year on any Assessor's Parcel. "Non-Residential Property" means all Assessor's Parcels of Deve]oped 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 ofthe 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 Faci]ities obligation in full for an Assessor's Parcel, as described in Section G. "Proportionately" means that the ratio of the actua]Specia] Tax for Faci]ities ]evyto the applicable Assigned Special Tax for Facilities is equal for all applicable Assessor's Parcels. In case of Deve]oped Property subject to the apportionment ofthe Special Tax for Faci]ities under step tbreeof Section F, "Proportionately" in step tbree 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 Faci]ities less the Assigned Special Tax for Faci]ities, is equal for all applicable Assessor's Parcels. (\ "Provisional Undeveloped Property:' means all Assessor's Parcels ofTaxab]e Property that would otherwise be classified as Exempt Property pursuant to the provisions of Section J, but cannot be . - City of Lake Elsinore Community Facilities District No. 2005-4 (Lakeview Villas) June 29, 2005 , ACENDA ITEM NO. -, , PACE ).0 OF 37 Page 3 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 as applicable. u "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. . "Single Family Property" means all Assessor's Parcels of Residen!ial Property other than Apartment Property. "Single ),?amily Unit" means a residential dwelling unit other than an Apartment Unit. "Special Tax" means any ofthespeciaHaxes authori;zed to be levied by CFD No. 2005-4 pursuant to the Act. "Special Tax for facilities" means .any,ofthe special taxes authorized to be levied by CFD No. 2005-4 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 tl1e periodic C?osts 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 Of' accumulation of funds Jor the acquisition or construction of facilities authorized by CFD No. 2005-4 provided that the inclusion of such amount does not cause an increase in the levy of U Special Tax for Facilities on Undeveloped Property as set forth in Step Two 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 CFD No. 2005-4, which are.not Exempt Property. . , "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, or Provisional Undeveloped Property. SECTION B . CLASSIFICA nON OF ASSESSOR'SP ARCELS. Each Fiscal Year, beginning with Fiscal Year 2006-07, each Assessor's Parcel within CFD No. 2005-4 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, Undeveloped Property City. of Lake Elsinore June 29, 2005 Conununity Facilities District No. 2005-4 (Lakeview Villas) U ACENDA ITEM NO. I PACE~OF 37 Page 4 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 Single Family Property shall be assigned to its appropriate Assigned Special Tax for Facilities rate based on its Building Square Footage. n SECTION C MAXIMUM SPECIAL TAX FOR FACILITIES 1. Developed Property The Maximum ~pecial 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 Apartment Property or Non- Residential Property shall be the applicable Assigned Special Tax for Facilities described in Table 1 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 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 Jor 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 exe'cutinga certificate in substantially the form attached hereto as Exhibit "A". (\ 2. Undeveloped Property and Provisional Undeveloped Property The Maximum Special Tax for Facilities for each Assessor's Parcel classified as Undeveloped Property, or Provisional Undeveloped Property in any Fiscal Year shall be the . Assigned Special Tax for Facilities. '. ., ..' .- (\ City of Lake Elsinore Community Facilities District'No. 2005-4 (Lakeview Villas) June 29, 2005' AGENDA ITEM NO. I PAGE aJ. OF:~ 7 . Page 5 SECTION D ASSIGNED SPECIAL TAX FOR FACILITIES ,< ',' () 1. Developed Propertv Each Fiscal Year, each Assessor'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. TABLEt ASSIGNED SPECIAL T~ FOR FACILITIES RATES FOR DEVELOPED PROPERTY FOR FISCAL YEAR 2006-07 BuiJdin S uare Foota e Less than 1,250 , 1,250 -1,750 Greater,than 1,750 . N/A N/A $2;546 $2,901 Unit Unit Unit " . , u 2., Undeveloped Property and Provisional.Undeveloped Property Each ,Fiscal Year, each Assessor's Parcel of 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 Undeveloped Property and Provisional Undeveloped Property for Fiscal Year 2006-07 shall be $127,440 per Acre. 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, 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 for Single Family Property, the Backup Special Tax for Facilities U for all Lots within such Final Map area shall be determined by dividing (a) the product of the City of Lake Elsinore Community Facilities District No, 2005-4 (Lakeview Villas) June 29, 2005 ACENDA ITEM NO. -, d:\ 37 rage6 PACE OF n Maximum Special Tax for Facilities nite for Undeveloped Property and the total Acreage of all Lots in such Final Map area, by (b) the total number of Lots within such Final Map area. The resulting quotient shall be the Backup Special Tax for Facilities for each Lot within such Final Map area. The Backup Special Tax for Facilities shall not apply to Non-Residential Property or Apartment Property. . - If a Final Map includes Assessor's Parcels of Developed Property which are classified or reasonably expected to be classified as Single Family Property and Non-Residential Property or Single Family - Property and Apartment Property, then the Backup Special Tax for Facilities for each Lot shall be computed exclusive of the allocable portion of total Acreage attributable to Assessor's Parcels classified or reasonably expected to be classified asNon-Residential Property or Apartment Property. Notwithstanding the foregoing, if one or more Lots are .subsequently changed or modifled 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. ' -. - i -- ),. , On each July I, 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. -' SECTION F (\ METHOD OF APPORTIONMENT OF THE SPECIAL TAX FOR FACILITIES n 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 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 Undeveloped Property up to ~IOO% of the Assigned-Special Tax for Facilities applicable to each such Assessor's Parc;el as needed to satisfy the Special Tax Requirement for Facilities. If additional moneys are needed to satisfy the Special Tax Requirement for Facilities . after. the first two steps have been completed, then the Special Tax for Facilities on _ each Assessor's Parcel of Devell;>ped Property whose Maximum Special Tax for Facilities is the Backup Special Tax for Facilities shall be increased Proportionately from the Assigned SpechiI Tax for Facilities up to 100% of the Backup Special Tax for Facilities as need<;d to satisfy the Special Tax Requirement for Facilities. Step Four: If additional moneys are needed to satisfy the Special TaX Requirement for Facilities ..~fter the first three steps have been compiete~,th~ Special Tax for Facilities shall be Step Three: City of Lake Elsinore Community Facilities DistrictNo. 2005-4 (Lakeview Villas) June 29, 2005 ACENDA IlEMNO. 7 Pa.e 7 PACE.2.::L-OF L, 7 levied Proportionately on each Assessor's Parcel of Provisional Undeveloped Property up to 100% of the Assigned Special Tax for Facilities applicable to each. . such Assessor's Parcelas needed to satisfy the Special Tax Requirement for U 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 increase4 by more than ten percent asa consequence of delinquency or default by owner of any other Assessor's Parcel within CFD No. 2005-4. .. SECTIONG .. PREPAYMENT OF SPECIAL TAX FOR FACILITIES The following additional defi~itions apply to this'Section G: "CFD Public Facilities" means $6,506,000 expressed in 2005 doll~rs, which shal,l increase by the Construction Inflation Index on July 1, 2006, and on each July I thereafter, or such IO'Yer amount (i) determined by the City Council as sufficient to provide the public facilities under the authorized bonding program for CFD No. 2005-4 , or (ii) determined by the City Council concurrently with a ' covenant that it will not issue any more Bonds to be supported by Special Tax~s for Facilities levied under this Rate and Method of Apportionment. "Construction Fund" means an account specifically identified in the Indenture or functionally U equivalent to hold funds, which are currently available for expenditure to acquire or construct public facilities eligible underCFD No. 2005-4. .. , "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 InflationIndex 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. r "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 pr~ayment. "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 lilter date with the proceeds of prior prepayments of Special Taxes for Facilities. . The Speciai Tax for Facilities obligation. of an Assessor's Parcel of Developed Property, or an Assessor's Parcel of 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 U in full, provided that there are no delinquent Special Taxes, penalties, or interest charges outstanding City of Lake Elsinore Community Facilities District No. 2005.4 (Lakeview Villas) June 29, 2005 AGENDA ITEM NO. PAGE d'S '7 DAB'?' 8 OF .7,7 (\ 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 ofan 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 notice of redemption of Bonds from the proceeds of such prepayment may be given by the Trustee pursuant to the Indenture. Ii 't T 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 RedemptioriAmount . Redemption Premium . Future Facilities Amount Defeasance Cost Administrative Fee . Reserve Fund Credit Capitalized Interest Credit Prepayment Amount As ofthe date of prepayment, the Prepayment Amountshall be calculated as follows: , ',.' ).,' (\ 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 Undeveloped Property, compute the Assigned Special Tax for Facilities as though it was already designated as Developed Property based upon the building permit issued or expected to beissued 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, 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, asreasonably determined by the CitY; and (b) divide th~ Backup Special Tax for Facilities computed pursuant to paragraph I for such Assessor's Parcel by the sum ofthe estimated Backup Special Tax for Facilities applicable to all . Assessor's Parcels of Taxable Property at buildout, as reasonably determined by the City. City of Lake Elsinore Community Facilities DistrictNo. 2005-4 (Lakeview Villas) June 29, 2005 I AGENDA ITEM NO. . P'B" 9 PAGE ~~ OF .37 , 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 U Amount". 4. ",Multiply the Bond Redemption Amount by the applicable redemption premiwp., 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. 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 payinterest on theBond 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 U 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 "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 ofthe 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. U CitY of Lake Elsinore Community Facilities District No. 2005-4 (Lakeview Villas) AGENDA ITEM NO. PAGE 'd7 June 29, 2005 I ' P"'ge 10 OF _"2,7 (', 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, and the Administrative Fee, less the Reserve Fund Credit and the Capitalized Interest Credit: . . 15. .' From th~ PiepayriH~nt Amourit, 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 cOfllPuted.pursuant to paragr~ph 6 shall be deposited into the Construction Fund. The amount computed pursuant to . paragraph 11 shall be retained by CFD No. 2005-4. The Special Tax for Facilities prepayment amount may be insufficient to rede~m a full $5,000 increment of Bonds. In suchcases, the increment above $5,000 or integral multiple thereofwill 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 prepajd pursuant to this Section G, the City Council shall indica,te in the records ofCFDNo. 2005A thatthere 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 time~ the re-gularly 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 Undeveloped Property for.which a building permit has been issued or is expected to be issued, orand 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. City of Lake Elsinore Connnunity Facilities District No. 2005A (Lakeview Villas) June 29, 2005 AGENDA ITEM NO~ PAGE as{ I OF l., 7 rage 11 The Partial Prepayment Amount shall be calculated according to the following formula: PP = (PG :--A) x F+A u The terms above have the following meanings: PP = the Partial Prepayment Amount. PG = the Prepayment AmoUllt calculated according to Section G. F = the percent by which the owner of the Assessor's Parcel is partiallyprepaying the Special Tax for Facilities. obligation. A= the Administrative Fees and Expenses 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 p'artially prepay the Special Tax for Facilities and the percentage by which the Special Tax for Facilities shall b.e 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) indicate in the records ofCFD No. 2005-4 that there has been a partial prepayment ofthe 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 obligation of such Assessor's Parcel to pay such prepaid portion of the SpecialTax 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, net of . Administrative Expenses, shall be at least 1.1 times the regularly scheduled aimual interest and principal payments on all curreritly 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 Facilitiesshallbe 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 determined (i) that all required . interest and principal payments on the CFD No, 2005-4 Bonds have'been paid; (ii) all authorized facilities ofCFD No. 2005-4 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 ofCFD No. 2005-4 have been satisfied. SECTION J. EXEMPTIONS u City of Lake Elsinore Community Facilities District No. 2005-4 (Lakeview Villas) June 29, 2005 ACENDA ITEM NO. -,. Pose 12 PACE~OF 3,7 (\ (', (\ 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) other types of public uses determined by the City Council, provi<,led that no such classification wouldreduc.e the sum of all Taxable Property to less than 3.5 Acres. ' Notwithstanding the above, the City, Council shall not classifY an Assessor's Parcel as Exempt Property if such c1assifitatiori would reduce the sum of all Taxable Property to less than 3.5 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 3.5 Acres will be classified as Provisional Undeveloped Property, and will be subject to Special Taxes' for Facilities pursuant to Step FoUr in Section F. " SECTION K MANNER O~ 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 tax~s, provided, however, that CFD No. 2005-4 maycoilect Annual Special Taxes for Facilities at a,different time o~ 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 cornmon 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 le,:ied. "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. "Maximum Special Tax for Services" means the maximum Special Tax for Services' that can be levied by CFD No. 2005-4 in any Fiscal Year on any Assessor's Parcel. City of Lake Elsinore Community Facilities District No. 2005-4 (Lakeview Villas) , June 29, 2005 ACENDA ITEM NO.) '7 PACE .3 0 OF 1, 7 Page 13 "Operating Fund" means a fund that shall be maintained for CFD No. 2005.-4 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 the end of the preceding Fiscal Year. . "Service Area" means parks, open space, and storm drains. ' "Special Taxfor Services" means any of the special taxes authoriied to' be levied within CFD No. 2005-4 pursuant to the Act to fund the Special Tax Requirement for Services. "Special Tax Requirement for Services" means the amount det~ined in ally Fiscal Year for CFD No. 2005-4 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 dr are reasonably expected to be accepted and maint.iined during the current. FiscalYear, (ii) Administrative Expenses, and (iii) anticipated delinquent Special Taxes for Services based on the delinquency rate in CFD No. 2005-4 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 Commencirig Fiscal Year 2005-2006 and for each subsequent Fiscal ,Year, the City Council shall U 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 MaximilmSpeciaI 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 " 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 CFD No. 2005-4 may collect the Special Tax for Services at a different time or in a different manner if necessary to meet its funding requirements. U City of Lake Elsinore Community Facilities District No. 2005-4 (Lakeview Villas) ,: June 29 2005 ACENDA ITEM NO. -, , ' PACE~OF 3.7 Page 14 (\ (\ (\ . SECl'ION M APPEALS Ariy 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 instalhneii.t of the SpecialTax that is disputed. The CFD Administrator shall promptly review the appeal, and ifnecessary, meet with the property owner, consider written and oral evidence regarding the amoimt 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' sParcel in the subsequent Fiscal Y ear( 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. 2005-4 (Lakeview Villas) June 29, 2005 '. ACENDA ITEM NO. -, 15 . PACE ~~ OF. 2,7 P-o' EXHIBIT "A" CITY OF LAKE ELSINORE AND CFD NO. 200S-X CERTIFICATE u 1. Pursuant to Section _ of the Rate and Method of Apportionment of Special Tax (the "ItMA"), theCjty 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 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 1 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. 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. U CITY OF LAKE ELSINORE By: Date: CFD Administrator COMMUNITY FACILITIES DISTRICT NO. 2005-X OF THE CITY OF LAKE ELSINORE By: Date: CPO Administrator U City of Lake Elsinore Community Facilities District No. 2005,4 (Lakeview Villas) June 29, 2005 ACENDA ITEM NO. PACE 33 " OF 37 Page ] 6 , RESOLUTION NO~ 2005-~t) ," (\ . . '. . RESOLUTION OF INTENTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE TO INCUR BONDED INDEBTEDNESS IN THE AMOUNT NOT TO EXCEED $9,000,000 WITIDN THE PROPOSED . CITY OF . LAKE ELSINORE COMMUNITY FACILITIES DISTRICT NO. 20054 . (LAKEVIEW VILLAS) WHEREAS, the City Council (the"Council") of the City of Lake Elsinore (the "City") has heretofore adopted' Resolution No. 2005- W ; stating the Council's intention to form COmmunity FaciFties District.No. 2005-4 (Lakeview Villas) (the "CFD"), pursuant to the Mellp-Roos Community FaCilities Act of 1982, as amended, (the "Act"), to finance the purchase, construction, expansion or rehabilitation pf 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. are necessary. to - meet increased demands placed upon the City as a result of development or ,rehabilitation occurring within the proposed CFD (the "Facilities"); and (\ . , - WHEREAS, in order to finance the Facilities it is necessary to incur bonded indebtedness in the amounts notto exceed $9,000,000, the repayment of which is to be secured :byspeci,al taxes levied in accordance with Section 53340 et seq. of the Act on all propelit' within the CFD, other than those properties exempted from taxation as provided. in the respective rate. and method of apportionment attached' as Exhibit A to Resolution No. 2005- 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 i~debtedness within the proposed CFDin the amounts not to exceed $9,000,000 to finance the costs of the ' Facilities. Section 3. The indebtedness will be incurred for the purpose of financing the costs of designing, constructing and acquiring the Facilities, the acquisition of (\ necessary equipment and property therefor and fulfilling contractual commitments 45632572.1 ACENDA ITEM NO. "7 PACE 3Y OF.~ 7 and carrying out the powers and purposes of the CFD, including, but not limited to, the financing of the costs associated with the issuance of the bonds and all other U costs necessary to finance the Facilities which are permitted to be financed pursuant to the Act. Section 4. It is the intent of the Council to authorize the sale of bonds in one or 'more series, in the maximum aggregate principal amounts not to exceed $9,000,000 at a 'maximum interest rate not in excess of 12 percent per annum or such rate not in excess of the maximum rate permitted by law at the time the bonds are issued. 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,permit~ed by law. Section 5.. A public hearing (the "Heining") on the proposed debt issue, shall be held August 23, 2005 'at 7:00 p;rri. or as soon thereafter as practicable, at the chambers of the Council, 130 S. Main Street; L<lke. Elsinore, Californi':l92530. Section 6. At the Hearing at the time and place set forth above, any interested persons, including all' persons owning land within the proposed CFD; may appear and be heard at the Hearing~ Section 7. The proposition to incur bonded indebtedness in the maximum U aggregate principal" amounts not to exceed $9,000,000 shall be submitted to the qualified electors of the CFD. A special community facilities distriCt election shall be conducted on August 23, 2005. The special election shall be conducted by hand delivered or mailed ballot election. The ballots shall be returned to the office of. the election officer no later than 11 :00 o'clock p.rn. on August 23, 2005. Section 8. The Clerk is hereby directed to publish a copy of this . resolution, which shall serve as notice ("Notice") of the Hearing and the special bond election, pursuant to Section 6061 of the Government Code in a newspaper or general circulation in the proposed CFD. Section 9. The Clerk may send a copy of the Notice of the Hearing by first-class mail, postage prepaid, to each registered voter and to each landowner within the proposed CFDas shown on the last equalized assessment roll. ~. , . . 'r .' , " . u 45632572.1 2 ACENDA ITEM NO. ., PAGE .15 OF ~ 7 PASSED, APPROVED AND ADOPTED this (\ 2005. day of CITY OF LAKE ELSINORE '. By: Title: Mayor . ATTEST: City Clerk of the City of Lake Elsinore APPROVED AS TO FORM: Barbara Leibold, City Attorney . n n 45632572.1 3 1 ACENDA ITEM NO. . . . PACE~t, OF <. 7 . . STATE OF CALIFORNIA )ss. . ) ) u COUNTY OF RIVERSIDE I, , 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: NOES: ABSENT: ABSTAIN: By: City Clerk ofthe City of Lake Elsinore u u 45632572.1 ACENDA ITEM NO. ., PACE ?, 7 OF.'1, 7 (\ n ,) <';' n CITY OF LAKE ELSINORE REPORT TO CITY COUNCIL u TO: MAYOR AND CITY COUNCIL FROM: ROBERT A. BRADY, CITY MANAGER DATE: JULY 12, 2005 SUBJECT: RESOLUTION OF INTENTION TO ANNEX PROPERTY INTO COMMUNITY FACILITIES DISTRICT NO. 2003-1 (LAW ENFORCEMENT, FIRE AND PARAMEDIC SERVICES) AND TO AUTHORIZE THE LEVY OF A SPECIAL TAX WITHIN ANNEXATION AREA NO. 14 (LAKEVIEW VILLAS) BACKGROUND On August 12,2003 the City Council approved Resolution 2003-37 establishing U Community Facilities District No. 2003-1 (Law Enforcement, Fire, and paramedic Services). The district levies a special tax for public safety costs above what already exist in the district. The City is requiring undeveloped parcels within the City that are developed with more than four residential dwelling units to be annexed into the service district. As a condition of approval, the City has required the Lakeview Villas development to be annexed into the Community Facilities District No. 2003-1. DISCUSSION A special tax will be levied in the amount of$156.06 per multi-family dwelling unit for fiscal year 2005-06. The amount of the special tax assessment maximum increases two percent annually. Lakeview Villas will add 155 single family dwelling units to the exiting district boundary and generate about $24,189 annually beginning in 2005-06 or once all the homes are built. The map of the proposed boundary is attached. u AGENDA ITEM NO. 1? PAGEJ-OF_I "'2, . REPORT TO THE CITY COUNCIL JULY 12, 2005 ('\ PAGE 2 FISCAL IMPACT The cost oflaw enforcement and fire services is approximately $750 per single family dwelling unit. For each SFD unit, only about $100 to $150 of property tax dollars will be generated. Property tax is not sufficient to fund the cost of public safety services and therefore the CFD 2003-1 special tax leVy of$156.06 will assist the funding of the increased public safety service where the property tax is . deficient. PROCESS The annexation into the district requires a specific process as outlined in the attached resolution. The City Council will need to hold a public hearing on the annexation into CFD 2003-1 and the participating property owner will have the opportunity to vote. The public hearing can be scheduled for August 23,2005. ('\ RECOMMENDATION It is recommended that City Council: I. Adopt the Resolution of intention to Annex Property from Annexation Area No. 14 (Lakeview Villas) into the CFD 2003-1 . 2. Schedule the public hearing on Annexation Area No. 14 for August 23, 2005 PREPARED BY: ~-~~. .. MATTN. PRESSE~ DIRECTOR OF ADMINISTRATIVE SERVICES (\ CI APPROVED FOR AGENDA BY: AGENDA ITEM NO. PACE d .<6 OF --' ~ PROPOSED BOUNDARY OF ANNEXATION NO. 14 TO COMMUNITY FACILITIES DISTRICT No. 2003-1 OF THE. CITY OF LAKE ELSINORE (lAW ENFORCEMENT. FIRE. AND PARAMEDIC SERVICES) COUNTY OF RIVERSIDE. STATE OF CALIFORNIA u r--~----, I I I I I I I r I I L___':" I I I I I I I I I __..J SEE DETAIL "A" A..P.N. 363-2"0-005 363-240-006 Je~240-007 363-240-010 363-240-011 Ill8:8H 240-014 2"o-0t~ J63- 250-001 ~200-002 J6J-2!50-00J J6J- 250- 004 363-250-005 363-250-006 .363-250-007 363-250-008 J6J-250-009 . 363- 250-0'10 363-250-011 363-2~-OI2 r SEE DETAIL "B" ---------l I I I I 1-____.:.._____J u SCALE: ,"-100' fH[R[Qr.IfQD(lIII J)IC _OAYOF ~ 8TIlSII(SC!lUlfClHNo. fUOlJlI fH[ onx:r: or 1)1[ orr ClDIk OF JH[ afT (JIFLNC( G.SlIIIClRI: lIC$----1JA'tOl' ~ OJYaDlIlQFlHlOTTOI'I.Nl"(RSINOIlE IHOIO'tCDInn' ~r D€.,....wAP~ fH[fI'AClf'OSD)~t:lAMCXA1ICWMO. ,. JO IH[ OTTOF t.Nf[ n.SMlA( COMIlItNTY 'ACaJJl[S OI$1JlICJ NO. 21>>.)-1 CITY OF LNll' D.SINCIIr. ccum' OF ~. STAlt OF arrQDllCC6lHE:Ol'YaFlNCf.............. VICINITY WAP NO ......, WiEIQ fUD IHIS _ DAY OF ___ 2005. .n JH( HClUII OF O'Q.OO<--k .. IOOIC.....- (]I' IMPS OF ASStSSUbT A/IIO ~n' 'AQU1lfS QSJJIlC15 I'A<< NOS.......-~ AS IN$1JlUliIDfJ HO. IN M oma:OI' JM:COUIlII'YII(C(IlIIIlDI" JH(CCUNI'TOP"-~ srA1I:OTCAlJP'DI(M.tl. DlSTIlIC1BCUlDAIIY ODUNTY R[Q1IID(R OF JH[ COUNTY OF ....fo_ "''--- PROPOSED BOUNDARY MAP JI(FtIt[NCt IN[ AMlf$ID[ ((lv/lifT A$$E$$OIIl''S IIAPS rcfI A IIOAUD Cll'SCRPneJrt (JIF PAIICU ~s MID 0IIiIPI$fQIj$ _HARRIS .. ASSOCIAJES )11-............. I!II _.....0...1.. (NI)"'_.'" (M) 1>>-*5 ""',.. I I I (\ n (\ PROPOSED BOUNDARY OF ANNEXATION NO. 14 TO COMMUNITY FACILITIES DISTRICT No. 2003-1 OF. THE CITY OF LAKE ELSINORE (LAW ENFORCEMENT, FIRE, AND PARAMEDIC SERVICES) COUNTY OF RIVERSIDE, STATE OF CALIFORNIA ~ . \l ~ . H "'37'24". M.2I' NW27'20"(30.00' ~'7'3lI'4II' ftooo~l.oct ,....... .6-3O'R'''' "20.llll' .~ c.-to.... A-OCT46'll8" .If> "'301.10' ~.D- l..17.... + ..-- DETAIL "A~ SCALE: ,._~' . g ~ . ; ~ WiEllll """"'''''''''' DEl All "B" PROPOSED BOUNDARY MAP _HARRIS .. ASSOC"'TES ....~-.WIoI,.. .....CIII2II. (fa) ..._. rAll em) et-.uu ~~ No. 14 ~. CODImwalty 'acII1Un DbtrIct No. 2003-1 of the Clt;r at Lake a.bt.ore (Law lDIorcement" nr.. -.4 Paramedic smceo) COVJnT '" -. CAIDOUlA ....... OJ'. ""'.. . I I I I -JiL OF...) '1.1 RESOLUTION NO. 200.5 -:- ~. . . . RESOLUTION OF INTENTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE' TO ANNEX PROPERTY INTO COMMUNITY FACILITIES DISTRICT NO. 2003-1 (LAW ENFORCEMENT, FIRE AND PARAMEDIC SERVICES) AND TO AUTHORIZE THE LEVY OF A SPECIAL TAX WITHIN ANNEXATION AREA NO. 14 (LAKEVIEW VILLAS) u WHEREAS, the City Council (the "Council") of the City of Lake Elsinore (the "City") has established City of Lake Elsinore Community Facilities District No. 2003-1 (Law Enforcement, Fire and Paramedic Services) (the "District") pursuant to the Mello-Roos Community Facilities Act of 1982, as amended, commencing with Section 53311 of the Government Code of the. State. of . California (the "Act"); and WHEREAS, the District will finance law enforcement, fire and paramedic services that are in addition to those provided in the territory within the District prior to the formation of the District and do not supplant services already available within the territory proposed to be included in the District through the formation of the District subject to the levy of a special tax to pay for such serVices, being U approved at an election to be held within the boundaries ofthe Distrir:t; and WHEREAS, the Council has provided for the annexation in the future of territory (the "Future Annexation Area") to the District pursuaht to the terms and provisions ofthe Act. WHEREAS, the City has received a Consent and Waiver from Elsinore Lakeview Villas, LLC requesting annexation of property owned by Elsinore Lakeview Villas, LLC, which constitutes a portion of the Future Annexation Area, into the Disttict; and. . NOW, THEREFORE, THE CITY COYNCIL OF THE CITY OF LAKE ELSINORE DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS: Section 1. The Council hereby determines to institute proceedings for the annexation of Annexation Area No. 14 (Lakeview Villas) iI1to the District under the terms of the Act. The exterior 'boundaries of the area to be annexed (Annexation Area No. 14 (Lakeview Villas)) are hereby specified and described to be as shown on that certain map now on file in the office of the City Clerk entitled U ACENDA ITl'M NO. PACE 5 "8 OF_I~ (\ n (\ "Proposed Boundaries, City of Lake Elsinore, Community Facilities District No. 2003-1 (Law Enforcement, Fire and Paramedic Services), Annexation Area No. 14 (Lakeview Villas)," which map indicates by a boundary line the extent of the territory included in Annexation Area No. 14 (Lakeview Villas) and shall govern for all details as to the extent' of Annexation Area No. 14 (Lakeview Villas). On the original and one copy of the map of such Annexation Area No. 14 (Lakeview" Villas) on file in the City Clerk's office, the City Clerk shall endorse the certificate evid~ncingthe date :and adoption of this, Resolution. The City Clerk shall file the original of such map in her office and, within fifteen (15) days after the adoption of this Resolution, the City Clerk shall file a copy of such map so'endorsed in the ; " '. . '-', : records of the County Recorder, County of Riverside, State of Cali fomi a.. . , . . . , ' ' Section 2. The map'sl1oWing Annexation Area No. 14 (Lakeview Villas), which area is to be subject to a special tax to be levied, is hereby approved and adopted. A certificate shall be endorsed on the original and on at least one copy of the map of Annexation Area No. 14 (Lakeview Villas), 'evidencing the date and adoption of this resolution. The City Clerk shall file the original of such map in her office and, withIn fifteen (15) days after the adoption ofthis Resolution, the city Clerk shall file 'a copy of such map so endorsed'in the records of the County Recorder, County of Riverside, State of California. . " I" Section 3. .' The:nameof the proposed anilexation area' shall be "City of Lake, EjsinoreCorrlmunity Facilities District No.2003-1 (Law Enforcement, Fire arid Paramedic Services), Anne;xation Area No. 14 (Lakeview Villas)." Section 4., Except where funds are otherwise available, it is the intention of the City Council 'to levy annually in accordance with procedures contained in . .1 , . ," . " the Act a special tax(the "Special TaX") sufficientto financelilw enforcement, fire and paramedic services that are in addition to those provided in the territory within Annexation Area No. 14 (Lakeview Villas) prior to the annexation of Annexation Area ,No. 14 (Lakeview Villas) into tl1e District and do not supplant services already available within the territory proposed to be included in the District, the costs of adIillnistering the levy and collection of the Special Tax and all other costs of the levy of the Special Tax, including any foreclosure proceedings, legal, fiscal, and financial consultant fees, election costs, and all other administrative costs of the tax levy. The Special, Tax will be secured by recordation of a continuing lien against all non-exempt real property in the proposed Annexation Area No.. 14 1_. . , (Llkeview Villas). ',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. Th~ annexation of AGENDA ITEM NO. PAGE " en OF..J "'2. Annexation Area No. 14 (Lakeview Villas) will not result in any change to the special tax rates levied in the District prior to. such annexation. U The Sp'ecial Tax is apportioned to, each parcel on. the foregoing basis pursuant to Section 53325.3 of the Act and such Special Tax is not on or based upon the ownership of real property. The maximum Special Tax. applicable to a parcel to be used for private residential purposes, as set forth in Exhibit A, is specified as a dollar amount which shall be calculated and established not later than the 'date on which the parcel is first subject to tax because of its use for private residential purposes, and such' amount shall not be increased over time by an amount in excess" of 2 percent per year. Unde~ no circumstances will the Special Tax to qe levied against any parcel used for private residential purposes be increased a~ a consequence of delinquency or default by the owner. of any other parcel or parcels within the proposed Annexation Area No. 14 (L.akeview'Villas) by morethan 10 pen;ent. As specified by the Act, for 'purposes of this paragraph, a parcel shall be considered "used for' private residential purposes" not later than the date on which all occupancy permit for private residential use is issued. . Section 5. A public hearing (the "Hearing")' on the' annexation. of Annexation Area No. 14 (Lakeview Villas) and the proposed rate and method of U apportionment of the Special TaX shall be' held on August 23,2005, at '7:00 o'clock p.m., or as soon thereafter as practicable, at the chambers of the qty Council of the City of Lake Elsinore, 183 North Main Street, Lake Elsinore, California 92530. SectioIi 6. At the time and' place set fort)1, above for the, hearing, any interested person, including all persons owning lap.ds or registered to vote within the propose4 Annexation Area No. 14 (Lakeview Villas),.may appear and be ' heard. Section 7. Each City officer who is or will be responsible for the District, if it is established, is here1;Jy directed to study the proposed Annexation Area No. 14 (Lakeview' Villas) and, at or before 'the time ofthe above-mentioned Hearing, file a report with the City Council, and which is to be made a part of the record of' the Hearing, containing a brief description of Annexation Area No. 14 (Lakeview Villas) and his or her estimate of the cost of providing additional law enforcement, , fire' and paramedic services within the boundary of Annexation Area No. 14 (Lakeview Villas). The City Manager is directed to estimate the fair and reasonable cost of all incidental expenses, including all costs associated with the annexation o(Annexation Area No: 14 (Lakeview Villas), determination of the U AGENDA ITEM NO. PAGE 7 11 OF..J '7, amount of any special taxes, collection of any special taxes, or costs otherwise (1 incurred in order to carry out the authorized purposes of the City with respect to the District. Section 8. The City may accept advances of funds from any sources, including private persons or private entities, and is authorized and directed to use such funds for any authorized purpose, including any cost incurred by the City in annexing the proposed Annexation; Area No. 14 (Lakeview Villas). The City may enter into an agreement to repay all of such funds as are not expended or committed for any authorized purpose at the time of the election on the levy of the . Special Tax, if the proposal to levy such tax should fail, and to repay all of such . funds advanced if the levy of the Special Tax shall be approved by the qualified electors of Annexation Area No. 14 (Lakeview Villas). Section 9. The City Clerk is hereby directed to publish a notice ("Notice") of the Hearing pursuant to Section 6061 of the Government Code in a newspaper of general circulation published in the area of the proposed Annexation Area No. 14 (Lakeview Villas). Such Notice shall contain the text of this Resolution, state. the time and place of the Hearing, a statement that the testimony of all interested persons or taxpayers will be heard, a description of the protest rights of the registered voters and landowners in the proposed Annexation Area No. 14 (Lakeview Villas) as provided in Section 5339.5 of the Act and a description of the proposed voting procedure for the election required by the Act. Such publication shall be completed at least 7 days prior to the date of the Hearing. n Section 10. The voting procedure with respect to the establishment of the District and the imposition of the special tax shall be by mailed ballot election. (1 ACENDA ITEM NO. PAGE 9. 1: OF /7, PASSED, APPROVED AND ADOPTED. this . ,2005. day. of ... , ATTEST: CITY OF LAKE ELSINORE.. Robert E. Magee, Mayor > j,. City Clerk ~ 1 ' , APPROVED AS TO FORM: Barb<l!a Zeid Leibold, CityAttomey . , ~ , ACENDA ITEM NO. ~ PACE-9..-0F_' .3 u u () (\ n (\ STATE OF CALIFORNIA ) " COUNTY OF RIVERSIDE . ) ss. ) I, , 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 meeting thereof held on the day of . , . 2005, and that it was so adopted by the following vote: AYES: NOES: ABSENT: ABSTAIN: By: City Clerk AGENDA ITEM NO. ~ PACE-1C2...-0F ..J?, EXHIBIT A RATE AND METHOD OF APPORTION,MENT. OF SPECIAL TAX , , " . '_',I ;i i/', ACENDA ITEM NO. ~ PACE-1L-OF..J ~ u u u n n (\ City of Lake Elsinore . Community Facilities District No. 2003-1 (Law Enforcement, Fire and Paramedic Services) Rate and Method of Apportionment of Special Tax Introduction Special taxes shall be annually levied on all Developed Residential Property and Developed Multi-Family Property (as hereinafter defined) in the City of Lake Elsinore Community Facilities, . ' , . District No, 2003-1 (Law Enforcement, Fire and Paramedic Services) (the '~District"), in accordance .l ' ' , with the rate and methoq of apportionment of special taxes hereinafter set forth. All.of the property within the District that is not Developed Residential or Developed Multi-Family Residential Property . shall be exempt from the Maximum Annual Special Ta~es ofthe District. Definitions Assessor's Parcel. A parcel of land in the District designated and assigned a discrete identifYing number on a map ofthe County Assessor of the County of Riverside. City. City of Lake Elsinore, California. Developed Multi-Family Property. Assessor's Parcels in the District for which a building permit has been issued by the City on or prior to March I preceding the Fiscal Year for the . construction of a Unit that is located or shall be located within a building in which each individual Units has or shall have at least one common wall with another Unit. Developed Residential Property. All other Assessor's Parcels in the District for which a building permit has been issued by the City on or prior to March I preceding any Fiscal Year for the construction ofa Unit that is not Developed Multi-family Property. Fiscal Year. The period beginning on July I and ending on the following June 30. Maximum Annual Special Taxes. The maximum annual special taxes levied within the District for any-Fiscal Year. Unit. Each separate residential dwelling unit, which comprises an independent facility capable of conveyance or use separate from adjacent dwelling units. Rate and Method of Apportionme!lt of Maximum Annual Special Taxes As of July I of each Fiscal Year, commencing July I, 2003, the City shall determine which of the Assessor's Parcels within the District constitute Developed Residential Property or Developed Multi-Family Property. Beginning in Fiscal Year 2003-04, and all subsequent Fiscal Years, the City shall levy the Maximum Annual Special Taxes on each Assessor's Parcel of Developed Residential Property in the amount of $300 and on each Assessor's Parcel of Developed Multi-Family Property AGENDA ITEM NO. '6 PAGE~OF-,3 in the amount of $150 per Unit. The amount of Maximum Annual Special Taxes shall be increased annually by 2%, commencing in Fiscal Year 2004-05, and each Fiscal Year thereafter. U Duration of the Maximum Auuual Special Taxes The Maximum Annual Special Taxes' 'shall be levied in perpetuity so long as Law Enforcement, Fire and Paramedic Services are being provided within the District. The Maximum Annual Special Taxes levied in each Fiscal Year shall be collected in the same manner as ordinary ad valorem property taxes are collected and shall be subject to the same penalties and the same procedure, sale, and lien priority in case of delinquency as is provided for ad valorem taxes. The Maximum Annual Special taxes whim levied shall be secured by the lien imposed pursuant to Section 3115.5 of the Streets and Highways Code: This lien shall' be a continuing lien and shall secure each levy of Maximum Annual Special Taxes. The lien of Maximum Annual Special Taxes shall continue in force and effect until the Special Tax ceases to be . levied in the manner provided by Section 53330.5 of the Govemment Code. . ' .' i", ., , , ACENDA ITEM NO. PACl=-1 ~ ~, OF .-I) u ,",< u (\ n ..: . :i n CITY OF LAKE ELSINORE REPORT TO CITY COUNCIL u TO: MAYOR AND CITY COUNCIL FROM: ROBERT A. BRADY, CITY MANAGER DATE: JULY 12, 2005 SUBJECT: INVESTMENT PLAN BACKGROUND On June 28, 2005, the City Council performed an annual review and adoption of the City's Investment Policy in accordance with Government Code Section 53646(a). The following are the next steps to be taken toward diversifYing the City's investment portfolio and improving the performance: . Select a third party custodian service provider . Select 3 to 6 broker dealers to conduct business with . Determine what portion of the portfolio is available to invest . Prepare a specific investment strategic plan given current and projected market conditions u DISCUSSION Select a third varty custodian service vrovider Staff solicited three informal quotes from institutions who are among the top custodial service providers in the Country. The quotes for each institution's minimum annual fee ranged from $2,800 to $4,500 are as follows: Firm Name Bank of New York Union Bank of California Wells Fargo Minimum Annual Al!l!rel!ate Fee $ 2,800 3,500 4,500 u AGENDA ITEM NO. 9 PAGE / OF S$ REPORT TO CITY COUNCIL (\ JULY 12, 2005 PAGE 2 - . . Staff is recommending using Bank of New York. Attached is a safekeeping agreement that will be executed by the City Manger upon approval. . The third party custodian will hold all the City investments purchased other than LAIF and the amounts in the City's checking accounts with Bank of America. As transactions are purchased, funds will be wired to the Custodian from BofA with instructions on which investment will be delivered. The Custodian compares the CUSIP number, the description and the amouI!t to the delivered investment. If the investment matches, the custodian releases theamounts. This process is called. Delivery Verses Payment (DVP). DVP is a recommended best practice by the Government Finance Officer's Association(GFOA) and is required by the City of Lake Elsinore Investment Policy. Select 3 to 6 Broker Dealers to Conduct Business With n Below is a table of brokers, and firms who have qualified according to section 13, Qualified Broker Dealers, of the investment policy. Staff is recommending that all , 6 brokers be approved: .. ' . . .Firm Name . Broker Name . Alternate Broker Citi Group Diane C. Murphy William C. Blackwill Morgan Stanley Dean Bonny Schumacher Union Bank of California Mark Kreymer Crocker Securities . Walter West Multi Bank Securities . Terry Buckley . Finance 500 Phillip B. Berg (', Ar;;fNOA ITEM NO. PAGE ;;Z q OF 38 REPORT TO CITY COUNCIL JULY 12, 2005 U PAGE 3 Morgan Union' - Multi Qualified Broker , Citi Stanley I. Bank of ' Crocker: ' Bank Dealer Criteria Group DW California Securities Securities 1. Certification form , X X X X X 2. Audited Financial Statements' ,x X, X. X X 3. Questionnaire ' X X X . X X 4. Firm NASD Certified X X X , X X 5. Fiini S~te Registered X X X X X B;()ker NASD Certified . 6. .X X X X X 7. Broker State Registered X X X X X Determine What Portion of the Portfolio is Available to Invest Based on projected. cash flow needs, the City can conservatively and safely invest U $9,000,000 outside of LA IF. The City currently has $29,400,000 in LAIF and 3,900,000 in the checking account. Of this amount, $6,640,000 is in the General Fund, approximately $11,819,000 relates to bonds, $11,615.,000 relates to capital funds, and $4,254,000 represents other special revenue funds. The attached Exhibit A is a schedule that shows these balances and the portion of those funds that can safely be invested. Several analyses were done to evaluate the cash flow needs of the City. First, a look at historical cash flow levels for each month is a common tool to determine the average minimum cash liquidity requirement. The attached Exhibit B is a chart that shows the monthly net cash transactions totals for last six .fiscal years for all funds. The chart shows a fairly consistent cash flow cycle and the total annual average is above zero. The two major spikes up are from the receipt of property tax revenue and the two major spikes down are the debt service payments. The debt service payments were timed and scheduled just after the property tax payments so that cash flow requirements would be met. U AGENDA ITEM NO. PACE .7 q OF 39 REPORT TO CITY COUNCIL ('\ JULY 12, 2005 PAGE 4 Secondly, an analysi$ ofthe daily cash balances for the prior six fiscal years was prepared for each fund with cash balances thatare considered for investment out side of LA IF and mentioned above. The cash balance analysis is not attached. _.' .. . _,I ". ," d: ;, . Prepare a Specific Investment Stratef!ic Plan Given Current a.ndProiected Market Conditions . . " .. The current market c'onctitions has shown an increase in the shorter term yield and a decrease in the long term yield. The spread between a 2 or3 year maturity and a 5 year maturity is 50 & 25 basis points or .5% and .25%, respectively. Long-term rates will eventually increase back up to where they were three or four years ago. For now, it is in the bes(interest ofthe City to invest in shorter 1, 2 and 3 year investments to avoid,the ,market risk associated withlong-term rates going up in two years. '. ; I". , (\ The City's investment portfolio should be structured using a laddered maturity strategy. A laddered investment plan is a recommended practices by GFOA for investment portfolio). . The portfolio would consist of staggered steps of investment maturities ranging betWeen I and 3 years and eventually between 1 and 5 years when long-terin invd;tm~nts with 4. and 5 year maturities are more attractive: After the first-year investments mature, the two-year:investments become the one~year, and the principal can be reinvested out to the end of the ladder. By investing at regular intervals, the portfolio is less affected by both high and low points in the market. The attached Exhibit C reflects a sample $9,000,000 portfolio offix~d income government agency securities with mixed maturities ranging from 1.6 years to 3.1 years with a weighted average maturity of 2.57 years and yield-to-maturity of . . 4.65%. Investment Stratef!V Criteria In developing the investment strategy for the City of Lake Elsinore, the following criteria were considered and are in order of priority: n ACENDA ITEM NO. PACE t.( CJ OF 3B REPORT TO CITY COUNCIL JULY 12, 2005 PAGE 5 U 1. Safety: Hold investment's to maturity. With a strategy of holding investments to maturity, investment principal will be kept safe. 2. Liquidity: The initial amount available to invest has' ti~t been determined. . The following were considered: . . 1. The cash flow cycles based on history 2. The future cash flow cycles based on projected assumptions 3. The' cash and investment pool balance in each Fund and the ' . nature of the Fund - , 3. Yield: Initially, the objective benchmark to beat is the current portfolio return tied to LAIFsince almost 100% of the portfolio is in LAIF. As the 'portfoliomatures in diversity and in average maturity, a larger portion of the portfolio can be invested and when appropriate, the City can invest in longer maturities and eam a higher overall portfolio yield. . . , .. FISCAL IMPACT i' U Under the recommended plan, the City will earn about $423,500 during the next fiscal year. This would represent an increase of $140,000 above what LAIF would eamed~ The c]lITent rate is 3% and is projected to go up to 3%. , RECOMMENDATION PREPARED BY: Staff recommends the City Council: 1. Authorized the City Manager to execute the safekeeping agreement with Bank of New York for custodial services" 2. Approve the list of certified broker dealers 3. Approve the proposed investment 1 ~ MATT N. PRES . . DIRECTOR 0 ADMINISTRATIVE SERVICES AClENDA ITEM NO. PACE 5> c;U OF 2fl APPROVED FOR AGENDA BY: n Investment/Fund' Balance Balance Portion to Invest LAIF ' " 29,362,96826 , Checking 3,877,34227 : 100 GENERAL FUND 6,640,608.73 Invest 1,600,000.00 , 6,640,608.73 Invest Total . 363 1997 SRS.F/CFD 88-3 3,262,048.98 Bonds 0% . - 254 AD 89-1 RR CYN IMPRV 2,223,233,76 Bonds 0%' - 360 AD.93-1DBT.SVC.FUND 1,726,006.70 Bonds 0% . - 357 CFD 2003-02 Cyn.HiII 1,342,156.03 Bonds' 0% . - 358 CFD 91-2 DBT.SVC.FND 1,036,579.48 Bonds 0% ' - 351 AD 87-2 DBT SVC.FUND : .' 550,656.24 Bonds 0% .. - 352 AD 86-1 DBT SVC:FUND . 368,712.12 Bonds ,0% . . - 365 C.F.D.98 , , 365,644.84 Bonds 0% - 353 AD 89-1 DBT SVC.FUND 315,069.72 Bonds 0% - 356 AD 90-1 DBT SVC.FUND 187,621.23 Bonds 0% - 362 CFD 95-1 (96 SRS,E) 113,669.43 Bonds 0% - 259 CFD 90-3 89,578.05 Bonds 0% - 372 CFD 2005-3 Albhl.Reh 51,548.36 Bonds 0% - 374 CFD 2005-4 LK.VWVIL 50,000.00 Bonds 0% - 373 CFD 2005-5 WASN.CYN, 47,094.05 Bonds 0% - 370 CMNO.DEL NRT 2004-XX 32,975.00 Bonds 0% - 367 CFD 2005-3 Sumrfy. 23,770.06 Bonds 0% - 371 CFD 2005-1-Serenity 22,560.72 Bonds 0% - 366 CFD 2004-1 DBT.SVC. 9,571.98 Bonds 0% - 369 CFD 2004-X Rosetta (16,112.68) Bonds 0% - 368 CFD 2004-2 Vista lag (14,150.00) Bonds 0% - 257 CFD 90-2 TUSCANY HLS (23,325.00) Bonds 0% - 359 CFD 90-3 DBT.SVC. (48,729.00) Bonds 0% - 364 88-3 III(B)-97 Srs.B (857,319.03) Bonds 0% - 10,858,861.04 Bonds Total 205 Traffic Impact Fee. 2,643,166.12 Capital 30% 793,000.00 211 STM.DRN, C.I.P, FUND 2,579,336.74 Capital 70% 1,806,000.00 611 D.A.G. TRUST FUND 1,376,000.00 Capital 50% 688,000.00 221 PARK C.I.P. FUND 1,205,895.35 Capital 50% 603,000.00 112 TRANSPORTATION FUND 819,401.48 Capital 50% 410,000.00 105 Mise.General Prj.Fnd 806,033.08 Capital 0% - 231 LIBRARY C.I.P. FUND 673,693.98 Capital 100% 674,000.00 605 PUBL.lMPRVITRUST FND 434,288.65 Capital 50% 217,000.00 204 SIGNAL C.I.P. FUND 306,822.45 Capital 0% - 130 L.L.M.D. FUND 305,414.43 Capital 0% - 201 STREET C.I.P. FUND 174,273.94 Capital 0% - 115 TRAFFIC SAFETY FUND 163,406.33 Capital 0% - 150 CD.B.G. FUND 76,785.20 Capital 0% - 610 K-RAT TRUST FUND 25,543.72 Caoital 0% - 140 GEOTHERMAL FUND 15,248.08 Capital 0% - 102 LLEBG PROG.FUND 9,872.41 Capital 0% - 113 MEASURE A FUND - Capital 0% - 190 FACLTY. C.I.P. FUND - Capital 0% - 199 STORM DAMAGE 1993 - Capital 0% - 202 BRIDGE C.I.P. FUND - Capital 0% - 203 ENTRY MRK.CIP. FUND - Carlital 0% - CITY OF LAKE ELSINORE Cash and Investments by.Type and Fund' 6/30/05 EXHIBIT A (\ (1 Page.10f2. ACENDA ITEM NO. PACE {;. c; OF 38 CITY OF LAKE ELSINORE' Cash and Investments'by Type and Fund 6/30/05. EXHIBIT A Investment/Fund Balance Balance Portion to Invest 110 STATE GAS TAX FUND (112,839.24) Capital 0% - 135 LLMD NO.#1 (15,501.90) Capital 0% - 11,486,840.82 Capital Total 608 TRUST DEP.& PRPD.EX 2,099,697.80 Special 50% 1,050,000.00 620 COST RECOVERY SYST. 1,534.437.53 Special 75% 1,151,000.00 232 City Fire Protection 175,984.20 Special 0% - 616 FIRE STN.TRUST FUND . 118,688.11 Special 0% - 606 MOB.SRC. AIR P0LUTN. . , 112.419.78 Special 0% - 104 Traffic Offender Fnd . .. 66,449.54 Special "0% - 101 SUPPLMT.LAW ENF.FND 58,990.99 Special 0% - 650 2003 Law & Fire Svc. 45,937.68 Special 0% - 604 ENDOWMENT TRUST FUND . 22,771.98 Special 0% - 103 OTS. Fund 18,622.33 Special 0% - 4,253,999.94 Special Total . TOTAL 33,240,310.53 33,240,310.53 Grand Total .. 8,992,000.00 Page 2 of 2 AGENDA mM NO. pAO& 7 q OF :sf] u u u I- m ~ (\ ~ o - .!!! :I: w"- It: ca o!j!. ~ >< C/) 0- ..JC/) w' w :t x:.2 j~ u.. Ul o~ ~o - CD 0- :l "'C CD .c u C/) n o o c;j o o ci o o 00 ~ o q' o o o ci o q ~ a o c;j o o ci o o -:i o o c;j o o. ci o o cD, o o c;j o o ci o o .... o o c;j o o ci o o N ACENDA ITEM NO. PACE g e> Q) ~ ro (5 l- I .<:- ';; ~ e> Q) ~ t !:: III i: >< UI. 10 o . '<t o o N + '<t o , <') o o N + <') o , N o o N f N o , ~ o o N + ~ o , o o o N + o o , '" '" '" ~ + ~ o o c;j o o ci o q e 9 OF 38 c.> I-' in J: >< w w 0:: o z in ...J W W ~ j II.. o >- !:: o 0;0:0:0:0:0:0;0:0:0 0'0'0'0'0'0'0'0'0'0 q:q:~:~:~:q:q:q:q:q O,O,~.~.N.O.M,~,~,~ ~:~:~:~:~:~:~:V:V:V *:W:~:*:~:*:*:*:W:~ v:o:m:O:O:O:m:N:V:O V:O:~:m:V:O:ID:N:m:O q:q:q:m:q:q:q:q:q:q Q'Q'Q'ci'Q.Q'Q,o'o'Q o:o:o:m:o:o:o:o:o:o ~:~:~: :~:~:~:~:~:~ . . . . . I . . . . . I . . . . 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C:'4:: co:-g:CO:m 3:1...:3:~ m:U:<u:~ E:E:E:"" o'co,o.co I:lL;I:Z ~:~:~:~ lL.:u..:LL:LL , C C C '" C '" C '" C '" C C <5 <5 <5 <5 C C C C q Co q q ~ ~ ~ ~ .,. .,. .,. .,. on o - on M .<: - 'i (J) - s:: '" E - (J) '" > .E ... o .!!! E to Ul " ITEM NO, PACE 9 c.> I-' m I r~ u U 9 OF ,5$ ('\ n ('\ SAFEKEEPING AGREEMENT ^)", ::r . City of .. ..,And The Bank of New York Trust Company, N.A. . . . ACENDA ITEM No.9 PACE It? OF 39 ARTICLE I: ARTICLE II: ARTICLE ill: ARTICLE N: ARTICLE V: ARTICLE VI: ARTICLE VII: ARTICLE Vill: ARTICLE IX: ARTICLE X: ARTICLE XI: TABLE OF CONTENTS APPOINTMENT OF BANK AS CUSTODIAN...........................! AUTHORITY AND RESPONSIBILITY OF CUSTODIAN........! INVESTMENT OF CUSTODIAL ACCOUNT.............................3 AUTHORIZED REPRESENT ATNES........................................5 CUSTODIAN INSTRUCTIONS..................................................5 .. . COMPENSATION AND EXPENSES OF THE BANK..............5 ADVANCES AND OVERDRAFTS.....................:......................5 RECORDS AND ACCOUNTS....................................................6 AMENDMENTS AND TERMINATIONS.................................? CONCERNING THE CUSTODIAN...........................................? MISCELLANEOUS....................................................................8 AClENDA ITEM NO. PACE II 1 OF .3g u u u (\ (\ n INSTITUTIONAL CUSTODY . . CUSTODIAN AGREEMENT THIS AGREEMENT is made this _ day of' (the "Principal") and The Bank of New York, N: (the "Bank"). as' follows: . . Custodial Account between the City of The Principal and the Bank hereby agree ARTICLE I: APPOINTMENT OF BANK AS CUSTODIAN . Section 1.01. TIle Principal appoints the Bank as 'custodian to receive and hold for safekeeping in the Custodial Account all securities tendered to it from time to time by the Principal or upon the Principal's direction ("Custodial Assets"), and to perform such ministerial functions as provided in this Agreement. The Bank agrees to hold and keep as custodian all property deposited or received by it for the account ofthe Principal and shall faithfully discharge its duties as set forth in this Agreement.' . Section 1.02. The Principal represents and warrants that it is authorized under the laws ofthe State of California to appoint the Bank as custodian .and to transfer.or cause to be transferred custody of Custodial Assets to'the Bank. Section 1.03. The Principal may direct the Bank to establish one 'or more sub-accounts to hold such portions of the assets of the Custodial Account as the Principal shall direct, along with the earnings and profits thereon, , , ARTICLE II: AUTHORITY AND RESPONSIBILITY OF CUSTODIAN . I~ . .) Section 2.01. The Bank is authorized to sign any documents which are now or may hereafter be required in order for the Bank to perform its responsibilities under this Agreement. Section 2.02. The Bank shall collect and receive the 'interest and other income, including dividends, paid to it by any person or organization with respect to securities and other properties which it holds as custodian under the terms of this Agreement. In the case of interest or dividends paid upon any municipal bonds, federal book-entry eligible treasury issues, and debt obligations or equity securities of any domestic corporation, the monies shall be credited to the Custodial Account in accordance with the Funds Payment policy in effect from time to time, Interest or dividend income on all other assets shall be credited to the Custodial Accou~t when received by the Bank. I: In the event the .Bank fails to actually receive any monies which have been credited to the' Custodial Account as hereinabove'described, the .Bank shall notifY the Principal within twenty-four (24) hours thereof~ shall reverse out such credit. and shan be entitled to interest at a fair and reasonable rate, as mutually determined by the Bank and Principal, from the date of credit to the Custodial Account until the date such credit is reversed. ACENDA ITEM r~o. PACE 1:2 9 OF :3 f5 Section 2.03. The Bank shail use its best efforts to coilect, on behalf of the Principal, monies which are due and owing to the Principal upon the maturity, redemption, principal payments, or sale of securities or other property held in the Custodial Account, or at the dates of their cails for payment of U which the Bank has actual notice from the reporting service to which the Bank subscribes, and proceeds of property so received shail be held in the Custodial Account, or forwarded upon the direction of the Principal. The Bank shail not be obligated to institute or participate in any legal proceedings to make such coilection. Whenever the Bank has been unable to make a coilection pursuant to ,this section it will notify the Principal of its inability to make such coilection, and the reasons therefor, insofar as, such reasons are known to the Bank. Section 2.04. The Bank will notify the Principal of any voluntary offering with respect to the securities held in the Custodial Account and will forward to the Principal, upon request, such literature and reports as may be, received by the, Bank pertaining to any securities held hereunder. The' Bank, absent directions, is under no duty to take any action with respect to any securities held in the Custodial Account. I'" The Bank wiil execute proxies with respect to Custodial Assets held in its name orin its nominee name and forward the proxies to the Principal without having voted the proxies. Section 2.05. The Bank shail disburse cash and other, property then held in the Custodial Account in accordance with the instructions of the Principal. The Bank shail have no responsibility to determine whether any such disbursements are in accordance with applicable law, regulations, or any agreement other than this Agreement. " .' , i' Section 2.06. Notwithstanding any other provision of this Agreement, ail or any of the monies or securities of the Custodial Account may be held in the Bank's own custody or in the custody of one or more sub-custodians appointed by the Bank. ' In addition, the Bank is authorized to cause securities to be U registered in the name of and to maintain such securities on deposit with, any registered securities depository or the Federal Reserve Book Entry System. Section 2.07. (a) The Principal hereby authorizes the' Bank on a continuous and on-going basis to deposit in the Federal Reserve/Treasury Book-Entry System (the "Book-Entry System") and lor the Depository Trust Company and/or the Participants Trust Company (the "Depositories") ail securities eligible for deposit therein and to utilize the Book-Entry System and the .Depositories to the extent possible in connection ,with settlements of the purchases and sales of securities, and other deliveries and retumsof securities. (b) Where securities eligible for deposit in the Book-Entry System and/or the Depositories are transferred to the Custodial Account, the Bank shail identity as belonging to the principal a quantity'of Securities in a fungible bulk of securities shown on the.Bank'saccount on.the books of the Book-Entry System or the Depositories. Securities and monies of the Principal deposited in either the Book-Entry System or the Depositories wiil be represented in accounts. which .include only assets held by the Bank ,of customers, including but not. limited to accounts in which the Bank acts in a, fiduciary or agency capacity. Section 2.08. The Bank may hold any of the Custodial Assets in the name of the Principal, in its own name, in the name of a nominee of the Bank, in book entry form, or in the nominee of its agent bank. 2 U At~NI)A ITEM NO. PACE /3 9 OF 38 (\ 'Section 2.09. The Bank is authorized to deliver ~my instrument or document necessary to register the securities in the Custodial Account, or to 'complete any sales or deliveries of them. The Bank may execute on the Principal's behalf any deClarations, affidaVits, certificates of ownership or other' documents required to service' the Custodial Account and guarantee that 'such documents have been executed by the Princip~1. The Principal shall furnish the Bank with all documents, authorizatimis, representations, or powers of attorney as' may be reasonable required by the Bank to carry out its obligations hereunder, 'but no such document, authorization, representation's, or power of attorney shall be construed to authorize the Bank to take any' action not authorized by this Agreement. Section 2~10. (a) Promptly after each purchase of securities by the Principal, the Principal shall deliver to the Bank Instructions, specifying with respect to each purchase: (I) the name of the issuer" and the title of the securities, including CUSIP number, if any, (ii) the principal amount purchased, (iii) the date of purchase and date of settlement, (iv) the purchase price per unit (if necessary of desirable), (v) the total amount payable upon such purchase, and (vi) the name of the person or institution from whom, or the broker through whom the purchase was made.' The Bank shall upon contractual settlement date debit the Custodial Account the total amount payable for the purchase of the securities, (\ (b ) Promptly after each sale of securities by the Principal, the Principal shall deliver to the Bank Instructions, specifying with respect to each sale: (I) the mime of the issuer and the title of the securities, including CUSIP number, if any, (ii) the principal amount sold, (iii) the date of sale and date of settlement, (iv) the sale price per unit (if necessary or'desirable), (v) the total amount payable to the Principal upon such sale, and (vi) the name of the person or institution to 'whom, or the broker through whom the sale was made. the Bank shall deliver the securities in accordance with generally accepted street practices (i.e., subject t6 coimi and verification), If the 'Principal's Instructions are received by the Bank in atimely manner and the securities which are sold are in good deliverable form, the Bank will credit the Custodial Account with the proceeds of such sale provided, however, that the Bank shall not be obligated to credit the Custodial Account with such proceeds if a failure to deliver the securities is not caused by the Bank (e.g., late instructions, incorrect instruction, and/or securities out on transfer). In any event, the Bank will be'entitled to reverse any credits previously made where monies are not finally collected. Section 2.11. ' The Bilok is authorized to' sell fractional interests resulting from a stock split, a stock dividend or any capital chiloge on a security and to credit the Custodial Account with the proceeds ' thereof. ' ARTICLE III: INVESTMENT OF CUSTODIAL ACCOUNT Section 3.01. The assets of the Custodial Account shall be invested and reinvested in' accordance with Instructions of the Principal, unless the Principal delegates investment responsibility and authority of all or a portion of the Custodial Account to one or more authorized representatives. In addition to the powers and duties described in Article II, the Bank shall have the following powers and duties which it shall exer'Cise and perform only upon tlie In'structions of the Principal or its authorized representatives: ,. 1 ,. (a) (to pay for all securities which have been pUrchased upon receipt of such securities by or for the bank (\ 3 AOENDA m:M I~O. PACE / 'I OF 9 38 (b) to deliver securities which have been sold in accordance with generally accepted street practices or any special directions .of the Principal or its authorized representatives, including but not limited to, the free delivery of securities. In acting upon instructions (on which the U'. Bank is authoril"ed to rely) to deliver securities against payment, the Bank is authorized, in accordance with customary securities processing practices, to deliver such securities to the purchaser thereof or dealer therefor (including to an. agent for any such purchaser or dealer) against a receipt, with the expectation of collection payment from the dealer, purchaser or agent to whom ,the securities were so delivered before the close of business on the same day. . ,\\Then the Bank delivers 'sec"rities against a receipt in accordance with the preceding sentence, the Bank shall not bear the risk associated with such securities processing practice, provided that the Bank did not select the .party to which such securities were delivered. (c) To convert, surrender, tender or exchange securities. Section 3.02. (a) Notwithstanding any other provision of this Agreement, if at any' time there is insufficient cash or securities in the Custodial Account with which to carry out the instrUctions of . the Principal or its authori"-ed representatives, the Bank shall notif'y the party giving the instructions of . such insufficiency as soon as practicable after receiving the Instructions and shall have no further responsibility for complying therewith until it recejves sufficient cash or securities. (b) Principal agrees that all investments executed through 'a broker-dealer will be in compliance with all applicable laws and regulates and that sufficient cash will be available in the Custodial Account to pay for any securities purchased without consideration giyen to the proceeds from the sale of the same securities. Principal !lcknowledges that B~mk will not pay for the purchase of securities with the proceegs from the sale of the same security. Section 3.03. The Bank shall have no duty or responsibility: U " (a) to supervise the investment of, or make reconnnendations with respect to the purchase, retention or sale of, securities or other property relating to the Custodial Account. . (b) for any loss occasioned by the delay in the actual receipt of notice by the Bank of any payment, redemption or other transaction in respect to which the Bank is authorized to take some action pursuant to this Agreement, unless due to negligence or an intentional act of the Bank. (c) for any act or omission, or for the solvency or nptice of Principal of the solvency, of any broker or dealer which is selected by Principal or any other person other than the Bank officers, employees or agent, to effect any transaction for the Custodial Account. Section 3.04. Principal may direct Bank to invest.a portion or all of the Custodial Assets in shares of one or more registered investment companies ("Funds") made available by Bank to its customers. Bank or its affiliates may receive fees ,for services provided to. the Funds. Bank shall provide to Principal copies of the prospectuses of the Funds and disclosures of the fees received by Bank and its affiliates. Bank shall have no investment authority over those assets of the Custodial Account so invested or the Funds' which have been purchased with such assets, nor shall the Bank have any responsibility, with respect to inve~tment performance of the Funds or to make any reconnnendations with respect to the purchase or sale of such shares. . 4 U AOENDA ITEM NO. PACE 15 OF 9 3e ARTICLE IV: AUTHORIZED REPRESENTATIVES (\ The Principal may appoint in Writing one or more authorized representatives for the Custodial Account and shall contemporaneously give written. notice of sale appointment or appointments to the Bank' and shall instruct. the Bank in writing' with respect thereto, Selection of an authorized representative shall be in ,the sole and absolute discretion of the Principal. The Bank shall follow the instructions of the authorized representatives in exercising the powers granted the Bank under Article II and ill, ,t, ' ARTICLE V: CUSTODIAN INSTRUCTIONS Section 5.01. Except as hereafter provided, any directions, instructions or notices which the Principal, or any other person designated by the Principal is required or permitted to give to the Bank under this Agreement (the "instructions") shall be in writing; provided, however, that the Bank in its discretion may act upon oral instructions if it believes them to be genuine, but the Bank shall not be required to do so, All oral instructions are to'be confirmed in writing. The Bank is authorized to record any telephonic communicatioris between authorized representatives and, the Bank. Section 5.02. The. transmission' of the Instructions by photostatic teletransmission with duplicate facsimile signatures or by affirmation via the national institutional .delivery system shall be authorized methods of communication until the Bank is notified by the Principal to the contrary, Section 5.03. The Bank shall as promptly as possible comply with any direction given by the Principal or any authorized representative. (\ ARTICLE VI: COMPENSATION AND EXPENSES OF THE BANK ", The Bank shall receive reimbursement for any expenses incUrred' by it in connection with the Agreement and compensation' for its customary arid ordinary services ,in accordance .with a written schedule of fees agreed upon from time to time between the Bank and the Principal. To the extent such fees and expenses are not paid by the Principal, within thirty (30) days following delivery by the bank to the Principal. of the Banks statement of such fees and expenses; the Bank may charge interest on such unpaid balances. To the extent such fees and expenses remain unpaid' for 90 days by the Principal, the Bank, upon notice to the Principal, may deduct such fees and expenses from the Custodial Account. In addition, the Bank shall be entitled to reasonable compensation for any extraordinary services which it is requested or deems necessary to perform hereunder, ' Fee and, charge schedules will be reviewed from time to time and adjusted as required, ARTICLE VII: ADVANCES AND OVERDRAFTS Section 7.01. In the event that (I) the amount on deposit in the Custodial Account, or any sub- account is insufficient to pay the total amount due upon the purchase or delivery of securities therefor. or (2) an amount otherwise drawn against the Custodial Account, or any sub-account is in excess of the available balance on deposit therein, the Bank may, if practicable, elect to advance funds to the Custodial Account, DDA and/or any sub-account in an amount necessary. to cover any resulting overdraft on such account. (' 5 AGENDA ITEM NO, C; PACE /6 OF :Sf{ Section 7.02. If the Bank should advance funds to or on behalf of the Custodial Account or any sub-account to cover such overdraft or for any other reason, the amount so advanced by the Bank (less any amount deposited by the Bank to the Custodial Account or sub-account in lieu or monies which have U not been collected by the Bank on behalf of the Custodial Account or. sub-account when due becomes of the failure of the Bank to make timely presentment or demand for payment) shall constitute a Loan hereunder. Each such Loan shall be payable on demand. Any Loan not repaid by the Bank's close of business on the day of disbursement shall bear interest for each day until payment in full at a rate per annum equal to 2 percent over the Bank's prime commercial lending rate in effect from time to time, such rate to be adjusted on the effective date of any change in such rate but in no event should the rate payable be less than six percent per annum. Interest on the Loans shall be computed on the basis of a 360-day year and actual days elapsed and shall accrue from and including the day of disbursement to but excluding the. date of payment. The Bank will notifY the Principal .of any interest owed due to a Loan prior to recovering the principal and accrued interest of any Loan made to the Custodial Account by the. Bank hereunder. Section 7.03. In order to secure the repayment of the principal and interest of any Loan to the Custodial Account or any sub-account, the Principal hereby.agrees that the Bank shall have a continuing lien and security interest in and to any property specifically allocated to and held by the Custodial Account or any sub-account which such Loan is deemed to have been made. In this regard, the Bank shall be entitled to all rights and remedies of a pledgee under common law and secured party under the California Commercial Code as. then in effect. ARTICLE VIII: RECORDS AND ACCOUNTS Section 8.01. The Bank shall keep accurate records and accounts with respect to all cash and other assets held by it in the Custodial Account; and all receipts and disbursements and other transactions U irtvolving such cash, securities and other assets. The Principal shall have access to all such accounts, books and records at all reasonable times. All such accounts, books and records. shall be open for inspection and audit at all reasonable times by the. Principal or by any person or persons duly authorized by the Principal. Section 8.02. The Bank shall furnish the Principal and the Principal authorized representatives with monthly reports in. the usual and customary .manner and form, setting forth all receipts, disbursements and transactions effected with respectto the Custodial Account. Section.8.03. Upon agreement 'of the parties, the Bank shall periodically determine the market value of the assets held in the Custodial Account. Market value for. the purposes of this Agreement means with respect to marketable securities the market price of each such security at the close of the business of the nay of which the valuation is being made, and in the case of all other assets the market value shall be deemed to be cost. In determining the market value of marketable securities, the Bank may utilize anyone or more sources of information deemed by the Bank to be reliable, including, but not limited to, a pricing service, standard financial periodicals or publications, newspapers of general circulation, records of and information from securities exchanges and brokerage firms. 6 U ACENDA ITEM 1110. 9 PACE /7 OF 58 Section 9.02. The Bank shall, immediately upon the receipt or transmittal notice of termination, as the case may be, commence .and prosecute diligently to completion the transfer of all cash and the delivery of all securities and other instruments, duly endorsed, to the successor of the Bank. The Principal shall select such .successor within thirty (30) ,days after the receipt or transmittal of such notice of termination, as the case may be, and shall' forthwith notify the Bank of the selection of such ,successor.. In the event the Principal has .not timely notified, the Bank of the selection, of such a successor, the,Bank, in it~ discretion"may deliver to the Principal all securities and other instruments, duly endorsed, and all casil, Upon delivery to the Principal or successor of the, cash; securities and other instruments held by it hereunder, the Bank sha,1l have no further liability or responsibility under this Agreement or otherwise, or for any act or omission.ofthe Principal or the successor. . ' n Section 9.03. Upon termination of this Agreement and either after payment to the Bank of all fees owed pursuant to this Agreement or the holding of sufficient funds or assets equal to any fees in question, all monies, securities and other assets of every kind and nature held in. the Custodial Account shall be paid over, delivered or surrendered upon a written order or receipt signed by the Principal or its appointed successor.. ARTICLE X: CONCERNING THE CUSTODIAN Section 10.01. Tile parties agree that the Bank is a bailee for hire, and as such must exercise reasonable care in operating under this Agreement., The Principal indemnifies and holds harmless the Bank, its directors, officers, employees and agents from and against all liabilities, losses, expenses and claims (including reasonable attorney's fees ,and costs of defense) arising out of the. Principal's or its authorized representatives' actions or omissions, with.respect to the Custodial Account, or arising out of or relating to any action; suit or proceeding to which the Bank is a party or otherwise involved by reason of its serving as C~stodian pursuant to thi~ Agreement and complying with its terms, except where the Bank has been found to have been negligent, or to have breached its duties under this Agreement. This indeminity shall be a. ,continuing obligation of the Principal, its successors and assigns, nOhvithstanding the termination of this Agreement. The Bank shall have no obligation hereunder for costs, expenses, damages.,liabilities or claims (including attomey's-fee) sustained or incurred by reason of any action or inacti.on by. the Federal Book-Entry System, any registered securities depository, or their, respective successors, or nominees, unless such action or inaction is caused. by the negligence or willful misconduct of the Bank, ' [\ 7 AGENDA ITEM NO. PACE /9 9 OF 38 Section 10.02. The Bank shall not be liable for any delay or failure to act as may be required hereunder when such delay or failure is due to fire, earthquake, or any act of God, interruption or suspension of any conununication or wire facilities or services, war, emergency conditions or other U circumstances beyond its control provided it exercises such diligence as the circumstances may reasonably require. l 'ARTICLEXI: MISCELLANEOUS Section 11.01. Subject to any'laws of the United States which may be applicable, this Agreement shall be governed, construed, regulated and administered under the laws of the States of California, . Section 11.02. It is not the intention of any party to this Agreement to violate any statute, regulation, ruling, judicial decision, or any other legal provision applicable to this Agreement or the' performance therof. If any term of this Agreement, or any act or omission in the performance therof, is or becomes violative of any such provision, such term, act or omission shall be of no force or effect and any such terms shall be severed from this Agreement. Any such invalid term, act or' omission shall not affect the validity of any other term of this Agreement that is otherwise valid, nor the validity of any otherwise valid act or omission in the' performance thereof, unless such invalidity prevents accomplishment of the objectives and purposes' of this Agreement. In the event any such term, act or omission is determined to be illegal or otherwise invalid, the necessary steps'to remedy such illegality' or invalidity shall be taken inunediately by the parties. 'Section 11.03. As the person exercising investment management authority in the above referenced account, I am entitled' to receive at no additional charge, notification of the details of securities transactions that you carry out for the account on my direction." Normally this notification" U would be by way of a copy of the confirmation from the broker with whom you placed the order and would be mailed to me within five days after receipt by the Bank. Since the pertinent information for all such transactions is included on the regular cash statements that I received for the account; I have no need for the additional notification. I hereby waive my rightto this notification until such time as I advise you otherwise.' Section 11.04. Any controversy or claim between the parties and any ciaim based on or arising from an alleged tort shall at' the request of either party be determined by arbitration. The' aribitration shall be conducted in accordance with the United States Arbitration Act (Title 9, U.S: Code), notwithstanding any choice of law provision in this Agreement and under the Conunercial Rules of the' American Aribitration Association ("AAA"). The arbitrator(s) shall resolve all claims and defenses or other matters in dispute in accordance with applicable law, including without limitation thereto, all statutes of limitation. Any controversy concerning whether an issue is arbitrable shall be determined by the arbitrator(s). Judgement upon the arbitration award'may be entered in any court having jurisdiction. ' The institution and maintenance of an action for judicial relief or pursuit of provisional or ancillary remedies shall not constitute a waiver of the right of any party, including the. plaintiff, to submit the controversy or claim to arbitration if any other party contests such action for judicial relief. 8 U AGENDA ITEM NO. 9 PAGE /9 OF 39 (\, (\ (' IN WITNESS WHEREOF, this Agreement is executed, as of the date first above written. The City of The Bank of New York Trnst Company, N.A. By: Title: By: Title: Tax Identification No. , ',' $;" C"_. AClENOA ITEM No.9 PAeE~r;L OF :3 Ff Solutions to Investors and Issuers WorldwideM Proposal to Provide Safekeeping/Custodial Services to the City of Lake Elsinore u July 7, 2005 The Bank of New York Trust Company Jose Matamoros Vice President (213) 630-6457 THE BANK OF NEW YORK TRUST COMPANY, N.A. ']h, BANK _ o/'NEWYORK. " .""' . u AClENDA I . PACE.2./ OF 38 (\ (\ ('. 7h<IlANK ' t/NEWYORK. 'I, City of Lake Elsinore . Table of Contents ,Tab Section I. II. Executive Summary Qualifications and Experience III. Appendices/Exhibits A. Summary Financial Statements , B. "Inform" Screen Prints .", c. Fee Schedule ".1 . '.< MINDA ITEM NO. 9 PACE 'J).. OF 38 'lluBANK o/'NEWYORK. City of Lake Elsinore u Executive Summary Safekeeping/Custody Operations and Services The Bank of New York Trust Company, N.A. (BNY) appreciates this opportunity to provide a proposal to the City of Lake Elsinore (the "City") for Safekeeping/Custodial Services. We hope you will find that our responses demonstrate how we intend to focus and leverage our experience to exceed your needs. We have a good grasp of your needs and expectations and believe that our unique strengths present a compelling case for our proposed partnership with the City. We offer the City: Our Commitment to the Business o Leading provider of corporate trust services, with 80,000 issues in. Administration representing over I trillion in debt outstanding o $6.6 trillion in custody administration. o Almost 50% of our bottom line revenu~. comes directly from securities servicing businesses. . o Our 2004 Investment in Technology ,,:as over $844 million o The Bank of New York is "in the business" to stay Our Customized Client Servicing o A dedicated client service team, led by a Relation~hip Manager with 15 years of experience and knowledge of the West Coast markets as well as securities markets related issues o Service that is pro.active, responsive and accurate. I o Multiple'point access for City staff (i.e. Relationship Manager "back.up", Business Manager accessibility ) o Our mandate is "No Surprises" u Our Superior Technology o A single, integrated Internet platform for information reporting is available - INFORM (see attached) o Demo website at htto://ii.bnvinform.com o Customized on.line Reporting for the System o Everything you need, at your fingertips The Bank of New York views a prospective relationship with the City as a partnership; and, accordingly, we believe it is. our responsibility to tailor our services, products, and innovative technology to the way you do business. With our highly qualified people, our goal is to exceed your expectations. We trust this approach will become evident as we disclose answers to your questions. Again, we trust that our interest in becoming your Custodian is clear and compelling. u AOENDA ITEM NO. q . PACE ~3 OF 3~ 'lht BANK o/'NEWYORK. n City of Lake Elsinore Qualifications and Experience History & Business Structure The Bank of New York, founded in 1784 by Alexander Hamilton, is the nation's oldest bank. It is the principal subsidiary of the Bank of New York Company, Inc, one of the largest bank holding companies in the United States. The Bank provides a complete range of banking and other financial services through its six basic businesses: securities processing, corporate banking, asset based lending, retail banking, trusts and investments, and financial market services. With 68% of The Bank of New York's revenue derived from Securities and Fiduciary services, the Bank considers thes.e businesses, including Municipal Corporate Trust and Custody, primary to its success. As a result, The. Bank' of New York and its affiliates, is one of the. largest Corporate Trustee banks in the Nation with over 80,000 issues representing over $1 trillion in Bonds outstanding. The Bank of New York Trust Company has 5 over I, I 00 employees that provide municipal corporate trust services to the market plac.e. As one of the world largest custodians, The Bank of New York currently has over $7.9 trillion in securities custody. n The. Bank of New York Trust Company, N.A., is legally organized and qualified to conduct business in California and currently maintains capitalization levels in excess of $350 million. Through our Los Angeles ano San Francisco offices, we have remained committed to the California Public Finance market for over 20 continuoils years, and administer over 6,000 bond .issues, representing over '$85 billion in debt outstanding. The Bank of New York also provides safekeeping for over $250 'billion in assets for various public and private agencies in the. State of California. Should we be appointed as the City's custodian your relationship manager will serve you from our Los Angeles office located at: . The Bank of New YorkTrust Company, N.A. "". 700 S. Flower Street, Silite 500" Los Angeles, CA 90017 The Bank of New York services over 5,800 clients around the globe. Our offices in Los Angeles, San Francisco and Seattle service. over 650 clients in the twelve western states of which over 160 relationships arepublic funds. PERSONNEL As a trustee serving debt "issuers throughout the nation," The Bank of New York is pleased to introduce Corporate Trust Safeke"eping, a unique inexpensive solution for small to"medium-sized municipalities and districts. These specialized services complement our broad range of trust services for the municipal market and illustrate our ongoing efforts to provide municipalities with quality service. n Leveraging our affiliation with The Bank of New York, 'one oithe world's largest securities custodian, we offer a collection of high-quality safekeeping services' tailored to governmental agencies. To facilitate all of the City's safekeeping needs, we propose to have Greg Chenail serve as your Relationship Manager for safekeeping services. Greg will be your sin&!~~t of contact q and will be responsible for settling securities for the City. Greg will post 1M! ~~M~ " PACE ;l t( OF 38 'lkBANK if NEW YORK. City of Lake Elsinore monthly reports and notifYing the City of maturing securities. What we offer the City is a Los Angeles based relationship manager responsible for Corporate Trust and Safekeeping Services. u Listed below, please find a short profile for Fe Tuzon. Fe R. Tuzon Trust Administrator (213) 630 6240. ftuzonla!bankofuv.com Fe Tuzon has been with The Bank of New York Trust Company for four years. Fe has over 18 years of corporate trust experience both in operations and administration. Fe's current portfolio includes certificates of participation, revenue bonds, mello roos bonds, multi-family housing bonds and hospital bonds. . She holds a degree in Business Administration from Divine Word College, Philippines. Over the years, Fe has participated in various training programs and industry workshops. ,.1 CUSTODIAL SERVICES The Bank of New York maintains highly efficient and automated "zero balance" cash management procedures. Accounts are swept daily and your account is managed to ensure that no money is left U un-invested. Cash is automatically.invested in one of.our many money market funds available. These daily sweeps are always the last transactions of the day, ensuring investment "to the penny." At the Bank of New York we are uniquely positioned to offer many various money market funds . /tom multiple providers. Upon our appointment we would be happy to share a number of prospectuses for your review and ultimate choice including their complete costs associated. Interest and dividend income can be reported on a cash or accrual basis, based-upon your needs. BNY's fail float policy minimizes the impact of failed trades by investing fail purchase money or late income proceeds daily for the benefit of the fund. These balances are automatically invested in a STIF vehicle for the duration of the fail. Income accrues daily and is credited monthly. Contractual and actual settlement is available. With contractual' settlement procedures, we post transactions on their'scheduled settlement date regardless of actual activity. If a sale settlement is delayed, the City receives proceeds on contractual settlement date. If a purchase settlement is delayed, funding is provisionally debited from your account and does not accrue to your benefit. BNY recommends that our clients subscribe to the contractual settlement alternative. With actual settlement procedures, we do not debit-your account if a receive transaction fails to settle. If a. delivery fails to settle due to our error, The Bank of New York will either advance funds or pay compensation. The Client Service Specialist will notifY the client of.any failed trade and w~rk to resolve the fail. INFORM provides trade settlement status reports real-time. Income is automatically credited to clients' accounts based on our guaranteed payment policy. BNY posts income payments in Fed Funds on payable date and these funds are available for investment that same day. We post the income whether or not we have received the funds except U in the case of private placements and GICs where interest is posted when it is received. In situations where we make no guarantee as to.payment date, income is credited by the system when the receivable file posts the collection. INFORM, our Internet-based inf~iWI #tWl'ivrm, '1 provides payment due information daily. A reconciliation is initiated immediatelY'irtlle mcoMe- . PACE ~5 OF 3& (\ 'lh~ BANK o/"NEWVORK. City of Lake Elsinore received from the depository or agent is different from that previously received from the vendor supplying the income information. INCOME CREDITING POLICY ,; Stocks/Corporate Bonds U.s. Treasuries & Agencies Mortgage-backed Securities' Guaranteed Investment Contracts Convertibles . State and Local Government Obligations '! Short-term Paper Variable Rate Floating Issues .1 . !, . r.' Income is posted on payable date Interest is posted on payable date Interest and principal posted on payable date Interest is posted when received . Income is posted on payable date' Interest is posted on payable date Interest is posted on hllltunty . ,Interest is posted on payable date Same day Same day Same day Same day Same day Same day Same day Same day The Bank ofN-ew York guarantees the settl~ment of all deliveries if the s~curities are in our possession, are in good deliverable form, and instructions are received in accordance with ~ur" prescribed cut-off times as detailed below., ' (\ U.S. Instruction Deadlines (Eastern Standard Time) , I I I Receive I Deliver Instruction Mainframe InstructIOn Window Security Type Dekdline (EST) Cutoff Deadlin~ (EST) Closing Depository Trust Company Interactive Institutional Delivery Non-liD Federal Reserve Book Entry -.affirmed by 11:00 am. on T+2 4:00 p.m. on T +2 - affirm~d by 11:00 a.m. on T+2 4:00 p.m. on T +2 3:00 p.m. 3:00 p.m. 3:00 p.m. 3:00 p.m: . 1 :30 p.m. on SO , 1 :30 p.m. on SD 3:15p.m. 2:45 p.m: .: I I I I : Instruction Window InstructIon Window , De~dlme (EST) Closing DeadlmJ (EST) Closmg Money Market Physical Issuer-Held Pap~r 1 :00 p.m. on SD 1:00 p.m. on SD 1:00 p.m. on SD 1 :00 p.m. on SD 3:15 p.m. 3:15p.m. 2:15p.m. 2:15p.m. I I I I I , ' I Instruction Fed Instruction Fed : Deadlme (EST) Closing DeadlinJ (EST) Closing (\ Wire Transfer 6:00 p.m. 5:15 p.m. 6:00 p.m. The Bank of New York adheres to the above deadlines for the timely settlement of securities. Any instructions sent after these cut-off times are handled on a "best efforts" basis. ACENDA ITEM NO. PACE~" OF q .sf! 1kBANK o/'NEWYORK. City of Lake Elsinore u TECHNOLOGY The Bank of New York shall work with your investment manager in the timely transfer of information pertaining to all trades made upon your behalf. In addition investment managers can have access to INFORM, BNY's Internet-based conununications systems, which provides real time information to be at their fingertips. Recognizing that our most frequent form of conununication with our clients is through our statements, we have continued to develop more informative and helpful solutions going beyond simply supplying information on paper. INFORM, The Bank of New York's vehicle allowing our clients internet access to review activity and assets .held with us as your custodian. INFORM provides daily real - time on-line access through the internet, to transactions and account balances from your personal computer. ,Saving you time, money and resources,INFORM contains downloading capabilities directly into your excel spreadsheets, to aid in ,the presentation of your treasury reports including assets held with trustees and custodians. Currehtly we have several municipal clients' up and running on INFORM, who can attest as to its functionality. A key feature of INFORM allows you to schedille reports to be automatically saved to your personal computer, disc, or printed at your desired time to meet your needs, without the need to manually access the system. . . Once appointed, our systems training group will work with you to establish your specific required U reports as requested. REPORTING Attached as Exhibit B, please find several screen prints from our INFORM system detailing some of the report features available and the ease of use. To view an interactive demonstration of the newly designed Inform website, go to the following URL (NOTE this may contain many applications hot necessarily needed by the City, however it will demonstrate the incredible flexibility available in the system): htto:/ lii.bnvinform.com/inform/index.htm CUSTOM REPORTING INFORM provides a series of standard interactive reports that are designed as templates allowing your staff to customize reports on-site, if desired. INFORM provides a Report Writer tool that enables your staff to create specific interactive reports. BNY's client data warehouse stores securities information in its elemental form. As a result, data can be combined in virtually any combination. This gives the City complete control over the form and content of desired reports. INFORM boasts sophisticated reporting capabilities for all holdings and transactions. Robust data selection criteria permit filtering and customization of custody, accounting, performance measurement, portfolio attribution, and investment guideline compliance in~.ormation in surnma~ and detail formats. Data available, includes audited monthly; unreconciled, in~~/;I~lYt-J;i and historical information. PACE ~7 U 9 OF ~B 'lMBANK o/'NEWYORK. n City of Lake Elsinore INFORM's browser technology provides tools that are extremely powerful for extracting data into meaningful reports or for further analysis. The user-friendly flexible Report Writer enables users to modifY existing reports or create new ones for analysis and review. New formats can be saved for f~ture use. The scheduler tool allows users to "program" reports and queries to automatically run and print unattended on a pre-scheduled timetable. Finally, INFORM allows downloading of all data for use in Excel or other applications. Data files can be imported in\o all commonly used spreadsheet programs such as MS Excel, or relational database management applications such as MS Access, Oracle, and Sybase, to support internal trading, cash, transaction processing, portfolio management and reconciliation systems. While the capabilities of the system are far reaching w~ are prepared to offer the City the basic reporting package at no additional cost. Should you desire to customize reports through our Report Writer feature and to export or download reports in an Excel format an additional cost, not to exceed $1,800 per year, will apply. It is our suggestion that the capabilities provided in the basic reporting package will suit the City's anticipated needs for a portfolio of its size. Should you wish to further explore the full capabilities of the system we are happy to discuss further. INSURANCE n The following insurance coverage is maintained. All coverage is continually renewed prior to expiration dates. Please note that our policies are stand-alone policies and per loss limits are not combined. The insurance coverage listed provides protection for The Bank of New York Company, Inc. and all other corporations, companies, firms, enterprises, or entities which are subsidiaries of, or affiliated with it, and in which the named insured has more than 50% ownership. All carriers are rated A- or better by A.M. Best and all L1oyds' syndicates have an S&P rating of Three (3) Crowns or better. (' AGENDA ITEM NO. PACE ;;. S q OF 38 '!hI! BANK o/"NEWYOltK. City of Lake Elsinore Coverage for wrongful acts in respective capacities of Directors or Officers of the Company 1211105 AGENDA ITEM NO. PAGE ~ 9 9 OF 38 u u u n (\ (' 'lhe BANK 0/" NEW VOR.K. City of Lake Elsinore Per Loss Limit: $600,000,000 California Earthquake Japan Earthquake Terrorism $25,000,000 $5,000,000 Expiration: All Risk of physical damage to real and personal property including Data Processing, Business Interruption, Boiler and Machinery Service Interruption I Extra Expense, Earthquake / Flood, Fine Arts 6/1/06 AGENDA 111M NO.... 2.._ PAGE JO AI' ~g 'llHBANK of' NEW VORL City of Lake Elsinore o o o AGENDA ITEM NO. 0.0 0.. 9 PAGE 3 / ..J)'.3K. 'lheBANK o/'NEWYORK. :& City of Lake Elsinore n Attachment B Welcome to INFORM . . below 'nistered INFORM user, please sIgn In . If you are a r '" ~ Ir , User 10: L. Password: L_ ~ IW.sUffinit{1 n (\ AClENDA ITEM NO. PACE :5;Z '" ~ 'I ",\' f~ c; OF ~& '11M BANK o/'NEWVORK. City of Lake Elsinore SUGGESTEO SPECIFICATIONS BROWSER VERSIONS CERTIFIED Welcome to The Bank of New York and INFORM Minimum Hardware Pentium PC 500 MHz TeCHNICAL ASSISTANCE 128 MB-RAM Memory (256 MB preferably) A broadband Internet connection should be used for optimal connection speeds. browsing only and nOt: with those products requiring an installed o!Ipplic.!ttion. Ao08EACROBAT AGSNDA ITEM NO. PACE 33 u u u OF '1 38 n (\ (\ 'lIMBANK of NEW YORK. City of Lake Elsinore Browser Versions Certified The following browsers ha....e,been certified to work with Inform. t ::: '1' '; ~~ . Platform' ~ ~ , last I,nternet El{plorer , ~" '~~ '!, :~k\ Certlfll:,d VersIon I ' ~ X', ,~ , "1, ,,' -; ~. Windows '98 IE 5.5 2000 IE 5.5 IE 6.0 For technical Assistance or questions please call one of the folloWing numbers: . USA, Conad" &. Mexico: (800) 332-4550, 7:00 a.m,-8:00p.m, (EST) . Europe, Middle East &. Africa: +44{Q) 20 7964 6161, 7:00 ,a,m.-6:00 p.m. (local Time). . Asi,!J (except India &. Indonesia): (800)2265-6369,9:00 a.m,-5:30 p.m, (Sing~pore Time) . Singapore: 65-6432-0323,9:00 a,m,-5:30 p.m. (local Time) . Hong Kong: 852-2162-9714,9:00 a.m.-5:30 p.m. (Local Time) . Tokyo: 613-3595-1074, 9:00 a.m.-5:30 p.m. (local Time) . Australia: 613-9640-3900,9:00 a.m.-5:30 p.m. (Local Time) . All Other Countries: (212) 815--4578, 7:00 a.m.-8:00 p.m. (EST) When calling, please have your company 10 available. ~ Adobe Acrobat INFORM Reports displays most requested reports usino the Adobe Acrobat Reader. Supported versions are Ado 6.0. These versions may be downloaded from wW~''!ldobe.com or you can click on the Adobe AcrobatReader lin MiNDA ITEM NO. PAOE 31( c; OF ~fJ 'lhe BANK o/'NEWVORK. CATEGORIES SEARCH: I. :GO ~ Subciltegory: Cateoory: MOST RECENT Account!n Commercl.-.I Peper. fAVORITES Cu.todya.Clei.rlng Und.ultjed - LIST ALL Report: ARCHIVE Account Trilll e..lenee (POF) CuhSt.tement i1nd List of Assets (POF) AOMINISTER "" OPTIONS ACENDA ITEM NO. PACE ~S- U U 9U OF 38' n 'l1u BANK o/'NEWYOIOC. [BACK ] Pave 1 of NOV 29 2003 1jI:22AM OOO<r.215Q1 IRVINE i4 CUl.VER RESERVE rIA y " OCT 1 SE' 0OO4215~H NOV22004 AUG31 AUG 29 2003 OCT 2 2004 JUl12003 6;3(11'.l1oi JUN 30 2003 000421591 AUG22004 MAY 1 2oo39:44AM APR 30 2003 000421591 IRVINE 94 CULVER RESERVE rIA y JUN 2 2004 ~,. n Copyright ~ 199~-2003 The Bank of New York Comp......, In.;. Allrlghbreseivecl. " (\ AGENDA ITEM NO. PAGE Jo 9 OF 38 'l1M BANK o/'NEWVORK. Attachment C FEE SCHEDULE FOR SAFEKKEEING SERVICES CiTY OF LAKE ELSINORE Set -Up Fee Waived Annual Account Maintenance/per account $2,800.00 This fee is paid in advance for said period, for any period that securities are in custody of safekeeping agent. Activity Charges INVESTMENT CHARGE/ner transaction $15.00 Transaction fees include the settlement, upon purchase, sale or maturity of funds held in custody under the Agreement. OUTGOING WIRE DISBURSEMENT FEE /ner transaction $15.00 ANNUAL OUT-OF-POCKET EXPENSES 6 % of Billed Fees Out-of-pocket expenses including, but not limited to, stationery, postage, telephone, and retention of records will be billed annually in an amount equal to 6 % of all fees billed for the year. Express mail, Federal Express and outside messenger services will be billed to the account at actual cost and are not covered by the 6 % expense charge. MISCELLANEOUS SERVICES Out-of-pocket expenses of administrator to attend closings or special meetings, outside counsel, accountants, special agents, etc. will be charged at the actual cost incurred. AI.II:I'IIJl\ II..... .._ PACE ~-; u u 9U OF -sR '11xBANK o/'NEWVORJ(. (\ TERMS AND DISCLOSURES TERMS OF PROPOSAL Final acceptance of the appointment as agent under the agreement is subject to approval of authorized officers of BNY and full review and execution of all- documentation related hereto. We reserve the right to terminate this offer if we do not enter into final written documents within three months from the date this document is first transmitted to you. Fees may be subject to adjustment during the life of the engagement. MISCELLANEOUS' The terms of this Fee Schedule shall govern the matters set forth herein- and shall not be superseded or modified by the terms of the Indenture. This Fee Schedule shall be governed by the laws of the State of California without reference to laws governing conflicts. BNY and the undersigned agree to jurisdiction of the federal and state courts located in the City/County of Los Angeles, State of California. CUSTOMER NOTICE REQUIRED BY THEUSA PATRIOT ACT To help the US government fight the funding of terrorism and money laundering activities, US Federal law requires all financial institutions to obtain, verify, and record information that identifies each person (whether an individual or organization) for which a relationship is established. (\ What this means to you: When you establish a relationship with BNY, we will ask you to provide certain information (and documents) that wili help us to identify you. We will ask for your organization's name, physical address,_ tax_ identification or other government registration number and other information that will help us to identify you. We may also ask for a Certificate of Incorporation or similar document or other pertinent identifying ,docunlentation for your type of organization. We thank you for your assistance. Accepted By: f(' -' For BNY: Signature Date: Name: Title (\ , . ACENDA ITEM NU. PACE :3 8 9 OF 3(1 CITY OF LAKE ELSINORE REPORT TO THE CITY COUNCIL u TO: MAYOR AND CITY COUNCIL FROM: BOB BRADY, CITY MANAGER DATE: JULY 12,2005 SUBJECT: INCREASE OF TRAFFIC INFRASTRUCTURE FEE (TIF) FOR DEVELOPMENT PROJECTS WITHIN THE CITY OF LAKE ELSINORE BACKGROUND, Resolution No. 2002-22 established the amount of the Development Impact Fee for Traffic Infrastructure (TIF). The amounts established for various land uses in year 2002 were: ~ingle Family residential $ I, I 97 per unit Multi Family residential $ 838 per.unit CommerCial B\lilding $ 3.35 per,sq. ft. Office Building $ 1.26 per sq. ft. Industrial Building $ 0.71 per sq. ft. U In July 2004 Resolution 2004-47 adjusted the fees to: TIF Fees as of July 2004 Single Family residential $1,288 per unit. Multi Family residential $' 902 per unit 'Commercial Building' $ 3.61 per sq. ft. Office Building $ 1.36 per sq. ft. Industrial Building $ 0.76 per sq. ft. " Section 8. Fee Adjustment. of Resolution No. 2002-22 states: "Corrunencing on July I, 2003, the fees established and imposed by the Resolution shall be adjusted as of Julyl of each year based upon the percentage increase or decrease, if any, of the Engineering News Record Construction Cost Index for the Los Angeles Metropolitan Area (CCI) for the twelve month period prior to May 1 of the year in which the change will be effective." DISCUSSION The TIF has been adjusted to be in effect July 2005, as shown bel()w. TIF Fees as of July 2005 Single. Family residential. $1,369 per unit Multi Family residential $ 959 per unit Commercial Building $ 3.84 per sq. ft. Office Building $ 1.45per sq. ft. Industrial Building $ 0.81 per sq ft u AGENDA ITEM NO. \ 0 PAGE_L_OF Y (1 Page 2 July 12,2005 INCREASE OF TRAFFIC INFRASTRUCTURE FEE (TIF) FOR DEVELOPMENT PROJECTS WITHIN THE CITY OF LAKE ELSINORE An enacting Resolution of the TIF increase has been prepared for City Council approval. FISCAL IMPACT' The fee adjustment r.eflects the increase of the cost of street improvements construction and, thereby, keeps the City's ability to improve the City circulation system steady. RECOMMENDATION It is recommended that the City Council of the City of Lake Elsinore approve Resolution. No. 2005- PREPARED BY: Chu~k Mackey, City Traffic Engineer APPROVED BY: Community Development Department (\ APPROVED FOR AGENDA LISTING: (1 AGENDA ITEM NO. \ Q PACE '/ OF C) RESOLUTION NO 2005 - B.. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE ESTABLISHING. AN INCREASE OF TRAFFIC INFRASTRUCTURE FEE (TIF) FOR DEVELOPMENT PROJECTS WITHIN THE CITY OF LAKE ELSINORE WHEREAS, Resolution No. 2002-22 established the amount of the Development Impact Fee for Traffic Infrastructure; and, WHEREAS, in Section 8. Fee Adjustment. of Resolution No.. 2002-22, states that th.e TIF fee shall be adjusted annually, and; WHEREAS, the fee was adjusted in July 2004, BY Resolution 2004-47 and; . .. WHEREAS, the cost adjustment factors have been calculated as described III the aforementioned Section"8, and; WHEREAS, the TIF fee has beenaccordingly adjusted and 'becomes effective July 2005; NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Lake Elsinore for development projects within the city of Lake Elsinore established the TIF as follows: TIF Fees as of July 2005 Single Family residential $1,369 per unit Multi Family residential $ 959 per unit Commercial Building $ 3.84 per sq. ft. Office Building $ 1.45per sq. ft. Industrial Building $ 0.81 per sq ft PASSED, APPROVED AND ADOPTED THIS day of 2005 \B AG\:NOA ITEM NO._ OF PAGE_~ - - u u u - - (\ n (\ Resolution No. 2005 - INCREASE OF TRAFFIC INFRASTRUCTURE FEE (TIF) FOR DEVELOPMENT PROJECTS WITHIN THE CITY OF LAKE ELSINORE AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: ABSTAIN: COUNCILMEMBERS: ROBERT L. MAGEE, MAYOR CITY OF LAKE ELSINORE . ATTEST: FREDERICK RAY, DEPUTY CITY CLERK CITY OF LAKE ELSINORE APPROVED AS TO FORM: BARBARA LEIBOLD, CITY ATTORNEY ACENDA ITEM NO. \ 0 PAGE ~ OF ~ u u u n (\ I ,I i (\ CITY OF LAKE ELSINORE REPORT TO CITY COUNCIL TO: MAYOR AND CITY COUNCIL FROM: '.' ! ROBERT A. BRADY, CITY MANAGER JULY 12, 2005 RESOLUTION TO APPROVE PLACING DELINQUENT REFUSE BILLS ON FY 2004-2005 TAX ROLL BACKGROUND DATE: SUBJECT: On June 9,1992, CR&R, Inc. was awarded an exclusive franchise agreement to provide solid waste collection and recycling services. Due to uncollectible accounts resulting from non-payment from property owners and renters, on July 23, 1996 Council approved collections via the tax rolls permanently for only those accounts whose payment are delinquent at minimum 120-days past due. Council also approved that CR&R continue with the current billing provisions, except for those delinquent accounts to remain indefinitely on the tax rolls. These costs are to include not only the delinquent charges,' but also the appropriate late payment, processing fees and the trash collection and recycling fees for the following year. DISCUSSION As of July 1, 2005, there are a total of 120 accounts on delinquent tax rolls totaling $19,211.96. Due to these delinquent accounts (and accounts requested to be on the tax rolls) and CR&R's past actions to collect for services rendered, CR&R submits for City Council approval a list of those accounts to be placed on the tax rolls. FISCAL IMPACT Payment from delinquent accounts placed on the tax rolls can take as long as 24-months to collect. In addition, CR&R continues to pay the City the franchise fee from the gross revenues. RECOMMENDA nON Staff recommends that the City Council approve Resolution No. 2005 which assures the permanent collection of alll20-day delinquent residential accounts as of July 1, 2005 through the property tax rolls. 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Z > - :D ;:: ~ :D 0 " Z " " m .... >>> >>> 0 .... ^^^ ~^^^ > mmm mmm ~ mmm s:mmm 0 ~~~ -r-{;;, < en en en ~~z~ m ZZZ " 000 >000 8 :D:D:D :D:D:D mmm mmm 000 00 ('}(') 0 >>)> )>)>>)> www is is is is """ mmm cnU'OOlO'l- WWW .....www 000 1\)000 ~ ~ .....1\)f\)1\)n:l ~ gNN . ,. ~ ~~t>~:D '" ,,-- ...............01 m ~mm m.......... I\) 0 "' (\ ; ~f (\ u $ . W Q. W ACENDA ITEM. NO. - o ~ o ." r; " m m r '" Z o " r!' " m '" 6 m z ::! )> r ;;! >< " o r r r (ij .... t22 ---- RESOLUTION NO. 2005 ~cr u A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE AFFIRMING THE REPORT OF DELINQUENT RESIDENTIAL REFUSE FEES AND DIRECTING THEIR COLLECTION ON THE PROPERTY TAX ROLLS WHEREAS, a written report of residential refuse collection fees delinquent as of July 1,2005 has been prepared and filed with the City Clerk as set out in the Lake Elsinore Municipal Code and the Health and Safety Code; and NOW, THEREFORE, the City Council of the City of Lake Elsinore resolves as follows: Section 1. The report of residential refuse collection fees delinquent as of July I, 2005 attached to and incorporated herewith in this resolution hereby is confirmed. The City Clerk is directed to file a certified copy of this resolution and of the report with the County Auditor. The County Auditor is designated and empowered to perform the duties as necessary. ; Section 2. The fees set forth in the report shall constitute a special assessment U against the respective parcels on which they are levied and are a lien against such property. The assessment shall be collected at the same time and subject to the same procedures provided such taxes. All laws applicable to the levy, collection and enforcement of ad valorem property taxes shall be applicable to such assessments, except that if any real property to which such fees or changes relate has been transferred or conveyed to a bona fide encumbrance for value has been created and attached thereon, prior to the date on which the first installment of such taxes would become delinquent, then a lien which would otherwise be imposed shall not attach to such real property and the fees or charges or interest shall be transferred to the unsecured roll for collection. Section 3. The City shall remit the fees collected to the franchised solid waste collector within I5-days after receipt thereof. Section 4. That portion of the principal, interest and other costs related to the delinquent trash accounts to be placed on the County Tax Rolls and be collected by the Riverside County Tax Collector, as provided for in exhibit "A" (a summary of fixed charges). Section 5. That the properties to be assessed and the related amounts are submitted on magnetic tape as requested by the Riverside County Tax Collector, further identified as County Fund No. 68-2370. u AGENDA ITEM NO. PAGE ( 9 ::L?- OF 'Pi n RESOLUTION NO. 2005 NOW THEREFORE, BE IT RESOLVED, by the City Council of the City of Lake Elsinore as follows: That the City Council of the City' of Lake Elsinore hereby adopt the collection of delinquent refuse service fees of customers with unpaid balances of more than 120-days to be collected permanently on the annual property tax roll. . PASSED, APPROVED, AND ADOPTED on this 12th day of July, 2005, by the following vote: ,. AYES: COUNCILMEMBERS NOES: COUNCILMEMBERS ABSENT: COUNCILMEMBERS (\ ABSTENTIONS: COUNCILMEMBERS ROBERT E. MAGEE, MAYOR ATTEST: FREDERICK RAY, DEPUTY CITY CLERK APPROVED AS TO FORM: BARBARA LEffiOLD, CITY ATTORNEY (' AGENDA ITEM NO. PAGE ~ .:L~ OF a. CITY OF LAKE ELSINORE DELINQUENT REFUSE COLLECTIONS EXHIBIT "A" u SUMMARY OF FIXED CHARGES FOR TAX ROLL , FISCAL YEAR 2004-05 FUND NUMBER TOTAL PARCELS TOTAL CHARGES 68-2370 120 $19,211.96 u u ACENDA ITEM NO. 22- PACE R OF R (\ ORDINANCE NO. 2005- 1151 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, APPROVING AMENDMENT NO.3 TO THE CANYON CREEK SPECIFIC PLAN NO. 85-1; LOCATED NORTHEAST OF INTERSTATE 15, APPROXIMATELY ONE MILE WEST OF CANYON LAKE, WEST OF SUMMERHILL DRIVE, , SOUTH OF GREENW ALD AVENUE, AND SOUTH OF THE EXTENSION OF LA STRADA ROAD, ADJACENT TO THE' EXISTING TUSCANY HILLS COMMUNITY TO' THE EAST, AND KNOWN AS ASSESSOR'S PARCEL NO. 363- 020-008. (\ WHEREAS, an application has been filed with the City of Lake Elsinore by La Strada Partners, LLC to amend the Canyon Creek Specific Plan No, 85-1; and WHEREAS, thePlanhing Commission of the City of Lake Elsinore at a regular meeting held on June. 21, 2005, made its report upon the desirability of the proposed project and made its recOlrummdationin favor of Amendment No.3 to the Canyon Creek Specific Plan No. '85-1 by adopting Planning Commission Resolution No. 2005-61 recommending to the City Council approval of Amertdment No.3 to the 'Canyon Creek Specific Plan; 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 interestedparties ata public hearing held with respect to'this item on June 28, 2005; , NOW THEREFORE, the City Council' of the City of Lake Elsinore DOES HEREBY RESOLVE as follows:" SECTION 1. The City Council has considered proposed Amendment No, 3 to the Canyon Creek Specific. Plan No, 85-1 prior making 'a decision, The City Council adopts the Mitigated Negative Declaration prepared for this project, by determining that the Initial Study is adequate and prepared in accordance with the requirements of the California Environmental Quality Act (CEQA) which analyzes environmental effects of the proposed project. ' '. (\ SECTION 2. That in accordance with State Planning and Zoning law and the City of Lake Elsinore Municipal Code, the following findings for the approval of Amendment No, 3 to the Canyon Creek Specific Plan No,' 85"1 have been made as follows: ACENDA ITEM NO. PACE \ o~~ ORDINANCE NO. 1151 AMENDMENT NO.3 TO CANYON CREEK SP JUNE 28, 2005 PAGE 2 OF4 I. The location and design of the proposed development is consistent with the goals and policies of the City's General Plan and with any other applicable plan or policies adopted by the City, or in the process of being prepared and adopted. a. The General Plan supports the development of the Canyon Creek Specific Plan, which has been partially constructed. The proposed Amendment has been reviewed and conditioned to enhance and update the original Specific Plan. b. The proposal has been designed to support the objectives of the Multi-Species Habitat Conservation Plan recently adopted by the City, by donating approximately 75.5 acres of natural open space within its boundaries that link habitat to the north and southwest of the project site. 2. The proposed location allows the development to be well-integrated with or adequately buffered from. its surroundings, whichever may be the case. , a.. The proposed Amendment integrates development of, Planning Area 2 of the Specific Plan with the existing community of Tuscany Hills, by extending a vital roadway, by the provision of additional infrastrUcture facilities. and by in,troduci!1g a unique, gated community of quality architecture, amenities, landscaping and monumentation. b. The proposed Amendment provides a buffer between the existing Tuscany Hills community and the La Strada homes with the provision of landscaped opl?n space along its eastern boundary that ranges in width from nearly 100 feet to 350 feet. 3. All vehicular traffic generated by the development, either in phased increments or at full build-out, is to be accommodated safely and without causing undue congestion upon adjoining streets. ,,- ) a.: A Traffic Impact Analysis was prepared for this project by Urban Crossroads dated February 7, 2005, and the project has been conditioned to implement the recommendations set forth in the Analysis. " . b. Furthermore, the City's Traffic Engineer has required that additional, circulation, measures be imposed upon the project. c. 'The project has been conditioned to utilize ,Greenwald,and Bella Vista if available ,as access for construction vehicles to avoid entering existing' Tuscany Hills neighborhoods. ACENDA ITEM NO. PACE 2 u u u 31 OF L\ n ORDINANCE NO. 1151 AMENDMENT NO.3 TO CANYON CREEK SP JUNE 28, 2005 PAGE 3 OF4 4. The Final Specific Plan shall identify a methodology to allow land uses to be adequately serviced by existing or proposed public facilities and services. a. The proposed Amendment has been review and conditioned to provide adequate public services to the site. b. The proposed Amendment provides a neighborhood park, pedestrian pathways, and a recreational facility for its residents. ' 5. The overall design of the Specific Plan shall produce an attractive, efficient and stable development. . . . . . a. The proposed Amendment will allow the construction of compatible residential units in a design that promotes neighborhood identity and "Great Neighborhood" design concepts, such as outdoor rooms or courtyards, offsetting garages, curb- separated sidewalks, cantilevered or recessed second stories. (\ I b. The proposed Amendment will provide recreational amenities and natural open space for its residents. 6. In accordance with the requirements of the California Environmental Quality Act (CEQA), impacts have been reduced to a level of non-significance. a. The Initial Study identified several significant environmental effects resulting from implementation of the project. However, these significant effects can be fully avoided/mitigated through the adoption of feasible mitigation measures. SECTION 3: This Ordinance shall take effect thirty (30) days after the date of its final passage. The City Clerk shall certify as to adoption of this Ordinance and cause this Ordinance to be published and posted in the manner required by law. . NOW, THEREFORE, based on the above findings, the City Council of the City of Lake Elsinore DOES HEREBY APPROVE Amendment No.3 to the Canyon Creek Specific Plan No. 85-1 per attached Exhibit 'E.' ., ' INTRODUCED AND APPROVED UPON FIRST READING this 28th day of n June, 2005 by the following roll call vote: 3J AGENDA ITEM NO. L\ PAGE ~Of_ - ORDINANCE NO. 1151 AMENDMENT NO.3 TO CANYON CREEK SP JUNE 28, 2005 PAGE40F4 AYES: COUNCILMEMBERS: NOES: , COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: ,.' " ABSTAIN: COUNCILMEMBERS: PASSED, APPROVED AND ADOPTED UPON SECOND READING this 12th day of July, 2005, upon the following roll call vote: ' , ", "' AYES: COUNCILMEMBERS:, NOES: COUNCILMEMBERS: ABSENT: CO:UNCILMEMBERS: " ABSTAIN: COUNCILMEMBERS: " , Robert E.;Magee, Mayor City of Lake Elsinore ATTEST: Frederick Ray, Interim City Clerk APPROVED AS TO,FORM: Barbara Leibold, City Attorney (SEAL) AGENDA ITEM NO. PAGE,. L\ u u u 0g OF ('\ , I' (\ II I I I ,I 'I d I I , , , 'i I II (\ CITY OF LAKE ELSINORE REPORT TO CITY COUNCIL TO: MAYOR AND CITY COUNCIL FROM: ROBERT A. BRADY, CITY MANAGER DATE: JULY 12,2005 SUBJECT: INDUSTRIAL DESIGN REVIEW NO. I 2004-04 APPLICANT: PETER DA LA TORRE, RIO CONSTRUCTION" 32081 . COYDON ROAD, LAKE ELSINORE, CALIFORNIA 92530 (OWNER: SAME) REQUEST: . The applicant is requesting design review approval for an industrial complex consisting of one (I) building and associated improvements pursuant to Section 9.2.3 (Design Review) and Section 7.5.5 (Airport Use Area Development Regulations) ofthe Liberty Specific Plan (aka East Specific Plan) for a 1 0,260 square foot industrial building and associated improvements. ., . . BACKGROUND: At their regular meeting of June 21, 2005, the Planning Commission unanimously adopted; Resolution No. 2005-63 recommending to the City Council adoption of Findings of Consistency with Section 6.1.2 of the Multiple Species Habitat Conservation Plan (MSHCP); Resolution No. 2005-64 approving Conditional Use Permit No 2004-41 and Resolution No. 2005-65 recommending to the City Council approval of Industrial Design Review No. I 2004-04 based on the Findings, Attachments" I" through "4" and the Conditions of Approval. DISCUSSION There was one (I) request to speak at the Planning Commission hearing. The questions were whether the proposed industrial project is consistent with the Liberty ACENDA ITEM NO. J ;;;... PACE t OF~ . REPORT TO CITY COUNCIL JULY 12, 2005 Page 2 00 u Specific Plan (aka East Lake Specific Plan) and assurance that any future storm water runoff would not be allowed to impact neighboring properties. The industrial use is allowed in the Airport Use Area (AUA) according to the Liberty Specific Plan. The Engineering Division has conditioned the project (Condition No. 55) to provide a hydrology and hydraulic study to be submitted and approved prior to issuance of a grading permit. Therefore, the question of any storm water impact will be addressed prior to issuance of a grading permit. There was no further discussion. FISCAL IMPACT The proposed project is anticipated to have a positive fiscal impact to the City of Lake Elsinore. - RECOMMENDATION u The Planning Commission recommends ,that the City Council ado!'t and approve the following based on the Findings, Attachments "]" through "4" (Minutes for the June 21, 2005 Planning Commission Meeting were not available) and the attached Conditions of Approval: 1. Adopt a Resolution of Findings of Consistency with Section 6. 1.2 of the Multiple Species Habitat Conservation Plan (MSHCP). 2. Approve Industrial Design Review No. 2004-04. PREPARED BY: LINDA M. MILLER, AICP PLANNING CONSULTANT APPROVED FOR AGENDA BY: u ACENDA ITeM NO. ~ PACE rv OF:34- U:\lmiller\ALL FILES\Reports\CC Rpts\2005\CC Report 12004.04 Peter Da La Torre 7.12.05.doc (\ (\ (\ REPORT TO CITY COUNCIL JULY 12, 200S Page 3 of 3 ATTACHMENTS: 1. Resolution adopting Findings of Consistency with Section 6.1.2 of the Multiple Species Habitat Conservation Plan (MSHCP). 2. Resolution approving Industrial Project No. I 2004-04. 3. Planning Commission Staff Report, Resolutions and Conditions of Approval of June 21, 2005 4. Full-sized plans for Industrial Project No. I 2004-04 5. Full-sized Color Exhibits (mounted on boards, prese!1ted at Hearing) ,l., .i' , . .' ' ACENDA ITEM NO. . 32- PACE '? OF ~ . U\lmiller\ALL FILES\Reports\CC Rpts\2005\CC Report I 2004-04 Peter Da La Torre 7-12-05.doc , .., u RESOLUTION NO. 2005-71 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, ADOPTING FINDINGS OF CONSISTENCY WITH THE MULTIPLE SPECIES HABITAT CONSERVATION PLAN (MSHCP) FOR THE PROJCT KNOWN AS INDUSTRIAL DESIGN REVIEW NO. I 2004-04 TO BE LOCATED AT 32081 CORYDON STREET (APN'S 370-080-017 & 018) WHEREAS, Peter De La Torre, RID Construction, has submitted an application for Industrial Design Review No. 2004-04; and WHEREAS, a Habitat Assessments Report dated April 7,)005 was provided meeting the requirements of the MSHCP; and WHEREAS, the project has been determined to be exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to Section 15162, Subsequent EIRS and Negative Declarations; an Environmental Impact Report was certified by the City Council for the East Lake Specific Plan on June 8,1993; and u 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 June 21, 2005. SECTION 1. The City Council has considered the Habitat Assessments Report and Industrial Design Review No. 2004-04. The City Council finds and determines that the project 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 consistent with the Multiple Species Habitat Conservation Plan A amriil1g to the Multiple Spu:ii5 Habitat O:nerwtinn Plan (MSHCP), a Habitat Assl5s1'Tl!T1/S Repart sl.ulJ /;e rrrptimi to address the paentiaJ Ixtbitat far the BttnrTUirf, Oul, Criteria A mt Spu:ii5, ani NanuwE rrlenil: Plant Spu:ii5. Sirre the Habitat ASSl5s1'Tl!T1/S Rtport dataiApril7, 2005 faud IV eUden::e wsuppart Ixtbitat for the BttnrTUirf, Oul, Criteria A mt Spu:ii5 or Nanuw E rrlenil: Plant Spu:ii5, jitture frotS studies are 1U nrpti>td 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. U AGENDA ITEM NO. '3~ PACEJ-OF n (\ (\ CITY COUNCIL RESOLUTION MSHCP CONSISTENCY Page 2 of2 PASSED, APPROVED AND ADOPTED this 12th day of July, by the following vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: . ABSTAIN: COUNCILMEMBERS: ('; Robert Magee, Mayor City of Lake Elsinore i: . ATTEST: Frederick Ray, Deputy City Clerk APPROVED AS TO FORM: Barbara Zeid Leibold, City Attorney City of Lake Elsinore (SEAL) . \. .' , '. '.' \ ACENDA ITEM NO. . ~ PAGE 0 OF q U:\ImillerlALL FILES\Resolutions-Ordinances\2005\CC RESO 2005- MSHCP 12004-04 7-12-05.doc u RESOLUTION NO. 2005- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, APPROVING INDUSTRIAL DESIGN REVIEW NO. I 2004-04 TO BE LOCATED AT 32081 CORYDON STREET (APN'S 370-080- 017 & 018) WHEREAS, Peter De La Torre, RID Construction, has submitted an application for Industrial Design Review No. 2004-04; and WHEREAS, a Habitat Assessments Report datedApril 7, 2005 was provided meeting the requirements of the MSHCP; and WHEREAS, the project has been determined to be exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to Section 15162, Subsequent EIRS and Negative Declarations; an Environmental Impact Report was certified by the City Council for the East Lake Specific Plan on June 8, 1993; and WHEREAS, public notice of said. application has been given, and the Planning Commission has considered evidence presented by the Community Development Department U and other interested parties at a public hearing held with respect to this item on June 21, 2005. SECTION 1. The City Council has considered the Industrial Design Review No. 2004- 04. The City Council finds and determines that the project is consistent with all of the required procedures, policies, guidelines and provisions of the Liberty Specific Plan (aka East Lake Specific Plan) based on the following findings: FINDINGS - INDUSTRIAL DESIGN REVIEW NO. 2004-04 I. The project, as approved, will comply with the goals and objectives of the General Plan and Liberty Specific Plan in which the project is located. The proposed Industrial Design Review located at 32081 Corydon Street complies with ihe goals and objectives of the General Plan and Liberty Specific Plan, in that the approval of these industrial business park will assist in achieving in development of a well-balanced and functional mix of residential, commercial, industrial, open space, recreational and institutional land uses as well as encouraging industrial land uses to diversify Lake Elsinore's economic base. 2. The project complies with the design directives contained in the Liberty Specific Plan. The proposed Industrial Design Review located at 32081 Corydon Street is appropriate to the site and surrounding developments in that the proposed industrial business park has been designed in consideration of the size and shape of the property, thereby creating interest and AGENDA ITEM NO. PACE (0 U:\lmilIer\ALL FILES\Resolutions-Ordinances\2005\CC RESO 2005, 12004-04 7-12-05.doc ~K OF (\ (\ (\ REPORT TO OTY mUNOL JULY 12, 2005 Page 2 of 3 varying vistas as a person moves along the street. Further the project as proposed will complement the quality of existing development and will create a visually pleasing, nOn- detractive relationship between the proposed and existing projects in that the architectural design, color and materials and site design proposed evidence a concern for quality and originality. 3. Subject to the attached Conditions of Approval, the proposed project is not anticipated to result in any significant adverse environmental impacts, . Pursuant to the California Environmental Quality Act (CEQA), the proposed Industrial Design Review located at 32081 Corydon Street, as been -reviewed and conditioned by all applicable City Divisions and Departments and Agencies, and will not .have a significant effect on the environmental pursuant to the Habitat Assessment Report dated April 7, 2005. 4. Conditions and safeguards pursuant to Section.9.2 Subsequent Development Entitlements of the Liberty Specific Plan including guarantees and evidence of compliance with conditions have been incorporated into the approval of the subject project to insure development of the property in accordance with the objectives Section 9.2. Pursuant to Section 9.2.3, Design Review of the Liberty Specific Plan the proposed Industrial Design Review located at 32081 Corydon Street has been scheduled for consideration and approval of the Planning Commission. PURSUANT TO THE ABOVE FINDINGS, IT IS RESOLVED by the City Council of the City of Lake Elsinore, California, that Industrial Design Review No I 2004-04 hereof be approved. PASSED, AND APPROVED this 12th day of July, by the following vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: ABSTAIN: COUNCILMEMBERS: Robert Magee, Mayor City of Lake Elsinore ACENDA 'TEM NO. ~ 2- PACL::!-OF 0 L 12004-047-12-05.doc t.. U :\lmiller\ALL FILES\Resolutions-Ordinances\2005\CC RESO 2005-_ '. I I REPORT TO aTY CDONeL JULY 12, 2005 Page3 of 3 u ATTEST:' Frederick Ray, Deputy City Clerk APPROVED AS TO FORM: Barbara Zeid Leibold, City Attorney City of Lake Elsinore (SEAL) u ACENDA ITEM NO. '12 U PACE <;( OF~ U:\lmiller\ALL FILES\Resolutions-Ordinances\2005\CC RESO 2005-_ I 2004-04 7-12-05,doc n ,PLANNING COMMISSION ,STAFF REPORT City of Lake Elsinon Planning Divi$ion 130S. Main Street Lake Ebnore, CA 92530 (909)674-3124 (909) 471-1419 fax DATE: June 21, 2005 TO: Chainruin and Members of the Planning Commission FROM: Robert A Brady, Oty Manager PREPARED BY: (\ PROjECfTITLE: , , Linda M. Miller, Project'Planner Conditional Use Permit No. 2004-41 and Industrial Design Review No. 2004-04 - APN 370-080-017 & 370-080-018 APPLICANT: Peter and Lis~ De La Torre, R/D.Construction, 32081 Corydon. Street"Lake Elsinore, California 92530 (Owner. Same) , PROjECf REQUEST , ' , . Review and approval of Conditional Use Permit No. 2004-41 :reqUU:ed~for industrial uses pursuant to Section 7.5.5.b of the Liberty Specific Plan (aka East Lake Specific Plan). . Review and approval of Industrial Design Review No. 2004-04 pursuant to Section 92.3 , (Design Review) and Section 7.5.5 (Airport Use Area Development Regulations) of the Liberty Specific Plan (aka East Lake Specific Plan) for a 10,260 square foot industrial building and associated improvements. PROjECf LOCATION " The 1.74 acre project site is located within the Liberty Specific Plan's Airport Use Area (ADA) at 32081 Corydon Street (APN's 370-080-017 & 018). (\ \'i AGENDA ITEM NO. :;;2 , PACE---1.:0F~ PLANNING COMMISSION STAFF REPORT JUNE 21, 2005 Page 2 ofS PROJECfTITLE: CONDITIONAL USE PERMIT NO. 2004-41 AND INDUSTRIAL DESIGN REVIEW NO. 2004-04, .LOCATED 320S1 CORYDON STREET (APN 370-0S0-017 & OiS) ENVIRONMENTAL SETTING u EXISTING ZONING. . GENERAL PLAN LAND USE Project Site Industrial East Lake Specific Plan East Lake Specific Plan Northwest Vacant East Lake Specific Plan East Lake Specific Plan Northeast Vacant East Lake Specific Plan East Lake Specific Plan Southeast Vacant County of Riverside . County of Riverside . ., Southwest Vacant East Lake Specific Plan East Lake Specific Plan PROJECf DESCRIPTION ',," INDUSTRIAL DESIGN REVIEW NO. I 2004-04 Site Plan u The applicant is proposing to construct a 10,260 square foot industrial building. The building will occupy approximately 14.2% of the project site. The interiorspace of the building includes 9,791 square feet of warehouse area, 4,000 square feet of offic~ space Qocated on the mezzanine level of the proposed building), 309 sqUare feet' ofrestroorri area and 160 square feet of mechanical! electrical area. Parldngl Circulation J The applicant has proyided 36 standard parking spaces. Two (2) handicap parking spaces have been proyided within the total parking spaces calculation. All parking spaces are'standard size spaces. No compact spaces are proposed for the project per the directive of the Planning Commission. .: Access to the project will be taken from a twenty-eight foot (2S') wide driveway off of Corydon Avenue. A twenty foot (20') wide decorative paved section will be constructed at the entrance of the driveway. Two loading spaces will be provided 'at the rear of the building: Landscaping. The applicant is proposing to provide 13,025 square feet of landscaped area or 18.1% of the total project site. Architectural Design () The design of the industrial building is typical of and consistent with industrial style of architectural found along Corydon Street. This style generally includes the use of rectangular shaped buildings either constructed of tilt.up concrete or precision block. Details have included extended or recessed AGENDA ITEM NO. 3 2- PAr.1: II'-. _ _.A n PLANNING COMMISSION STAFF REPORT JUNE 21, 2005 Page 3 of8 PROJECT TITLE: CONDITIONAL USE PERMIT NO. 2004-41 AND INDUSTRIAL DESIGN REVIEW NO. 200+04, LOCATED 32081 CORYDON STREET (APN 370-080-017 & 018) bUilding planes and varylng roof lines. The bUilding proposed follows this established type of architectural style. The front elevation includes two recessed panels of plaster over precision block. There is a center column. feature that also uses the plaster covered precision block. Two additional columns are ,shown at each end of the front elevation. ,These columns use split-face block with a painted precision block trim. The front elevation also is sectioned with "v-groove" reveals. Finally there are two, four panel window sections and two glass entrance doors. A second row of windows is shown at the second floor level. The roof lines follow the various colwnn heights crearing a varied rather that a flat roof line. A cornice trim cap the roof lines around the entire bUilding. The painted precision block section is carried around the remaining three sides of the building. The column features and varylng roof lines shown on the front elevation are also shown on the southwest and northeast elevations. These elevations will be seen from Corydon Street. Colors and Materials (\ The details of the colors and materials proposed for the bUilding are: n Location Elevations Main Color Trim Cornice Wmdows , Trim Material Precision Block/Split Face Color Glass Anod. Aluminum Light Tan Moss Green and Medium Tan Light Grey Smoked glass Bronze CONDITIONAL USE PERMIT Section 7.5.5.b of the East Lake Specific Plan requires that all industrial uses proposed within the Airport Use Area require a Conditional Use Permit. The applicant has submitted a separate application and fees to comply with this requirement. MULTIPLE SPEOESHABITAT CONSERVATION PLAN Staff is required to make a determination as to whether the project is consistent with the Multiple Species Habitat Conservation Plan (1fSHa) pUrsuant to Section 6.0, MSHa Implementation' Structure. Staff found that the project site was located within Sub:-unit 3, Core Area 3, Oiteria Cell. No. 5131. Also, according to the Multiple Species Habitat Conservation Plan's criteria guidelines, Oiteria Cell No. 5131 states that "... this Cell will focus on grassland habitat. Areas conserved with this Cell will be connected to grassland habitat proposed for conservation in Cell # 5137 to the west. Conservation within this Cell will range from 30%-40% of the Cell focusing in the southwestern portion of the Cell." AGENDA ITEM NO. ::} 2- .i' /' /lI PLANNING COMMISSION STAFF REPORT JUNE 21, 2005 Page 4 of 8 u PROJECT TITLE: CONDITIONAL USE PERMIT NO. 2004-41 AND INDUSTRIAL DESIGN REVIEW NO. 2004-04, LOCATED 32081 CORYDON STREET (APN 370-080-017 & 018) Therefore; it was determined that the applicant was required to,submit the Gty of Lake Elsinore's. Acquisition Process Application (LEAP) that includes a completed application form, and a biological survey (Habitat Assessment) with exhibits and associated photographs that clearly detail the project area and provide a determination as to whether potential habitat for the Burrowing Owl, Oiteria Area Species and Narrow Endemic Plan Species exists on the site., Upon receipt of the complete 'application (LEAP No. 2005-06), Staff was able to make a determination as to whether the project would need to be processed further through the Lake Elsinore Acquisition Process (LEAP) and Joint Project Review QPR), The applicant provided a Habitat Assessments Report dated April 7; 2005 submitted by the consulting biologists firm known as Principe and Associates (see attached). The report found that the applicant's existing business known as RID Construction occupies the majoritY of site including an office trailer, storage containers, outdoor storage and equipment parking. The site has been previously graded flat. The report states .that there are no natural 'water courses present and surface, U vegetation consisted of invasive, non-native species. It was found that the site was not occupied by the Burrowing owl and did not provide habitat for this species. The report stated that further focused surveys for this species were not reconunended. . It was found that the growing habitat for Oiteria Area Plant Species was not present on the site and the project would not have an impact on biological resources. No Riparian! riverine areas or vernal pools were present on the site nor where there any direct or indirect relationship to existing wedand regulations on the site. The attached Shape File Exhibit illustrates the proposed project is located within approximately 1/ 16th of the Oiteria Cell 5131 in the southeast one quarter comer of the southwest half of Oiteria Cell 5131. Therefore, Staff determined since 1) the site had a high level of disturbance; 2) that the site was not occupied by the Burrowing owl and does not provide habitat for this species; 3) that the growing habitat for Oiteria Area Plant Species were not present on the site and the project would not have an impact on biological resources; and 4) the proposed project site occupies approximately 1/16th of the Oiteria Cell No. 513lleaving the potential for the required connection to any grassland habitat that may exist, no further processing through the HANS process would be necessary..Staff further determined that the Habitat Assessment Report meets the requirements of and is consistent with the MSHCP, and no further environmental review would be required., u 32- "GEN~~ ~:EM ~~ Of!7 q (', PLANNING COMMISSION STAFF REPORT JUNE 21, 2005 Page 5 of 8 PRO]ECfTITLE: CONDITIONAL USE PERMIT NO: 2004-41 AND INDUSTRIAL DESIGN REVIEW. NO. 2004-04, LOCATED 32081 CORYDON STREET (APN 37o.:080~017 & 018) ANALYSIS TheappIicani:h~ ~ubstantially met the requirements of Section 7.5.5. Airport Area Development Regulations, 7.5.5.b, Conditional Use Permit, Section 7.8. Parking Requirements, Section 7.10 Landscape Requirements and Section 9.of the Liberty Specific Plan (aka East Lake Specific Plan) and will be consistent with the existing industrial project in the general area thereby creating a cohesive industrial community. . " ENVIRONMENTAL DETERMINATION . . -. .. . The proposed project has been detertnined to be exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to Section 15162, Subsequent EIRS and Negative Declarations. An Environmental Impact Report was certified by the City Council for the East Lake Specific p.lan on June 8,1993. ' '. " n STAFF'S RECOMMENDATION Staff recommends that 'Planning Conunission adopt Resolution No. 2005-~, recommending City Council adopt findings of consistency with the MSHa>, adopt Resolution No. 2005-,,"- approving Conditional Use Permit No. 2004-41" and adopt Resolution No. 2005 - ---..:.recommending City Council approval of Industrial Design Review No. I 2004-04 based on the following Findings, Exhibits anq subject to the attached Conditions of Approval. (\ FINDINGS - MULTIPLE SPEQES HABITAT CONSERVATION PLAN' 1. The proposed project,is consiStent with the Multiple Species Habitat Conservation Plan A a;un;/ing to the Multiple SpfOO HahiJat Conserutti1m Plan (MSHCP), a HahiJat A ssessm:nt Rfpart shall re rrrptirrd to address the paentiaJ. habitatfor the BUI'l'OUirf, 0u1, Criteria A 1W SpfOO, ard NaiwwE rxIenit: Plant SpfOO. Si= the HahiJat Assessm:nt Report daudApriI. 7, 2005 farrd m I!1iderxe to support habitat for the Burruitirf, 0u1, Criteria A 1W sjM:U5 or Narrow E rxIenit: Plant Spffies, fUture fixus studies are rK.t nquiral . FINDINGS - CONDITIONAL USE PERMIT NO. 2004-41 . 1. The proposed use, on its o~ merits andwithin the context of its setting, is U; accord with the objectives of the General Plan and the Liberty Specific Plari in which the site is located. In order to adYiez.e a 'wdJ IzdamxI a;n /urxtim:d rrix if residential, CJJlll1E/rid, irxiustrial; rpm.~ m:rr?atUn:d ani instiJ.ution:d lam uses, staff has ~ er.nluaud the lam use ronpatibility, noise, trajjU: ani dher ~ hazards reIat<<l to the prq;aed Ctnli!iornl Use Penrit JlU1SuarTt to the nrpIilMl!r1ts if the Liberty SpWfic Plan la:ated at 32081Corylon Strret. A amr1irIfiy,theprq;aed lard use is in ~ Wth the Wja:ti'1l5 if the Gem-al Plan ani S pWfic Plan in 7ihUh the siti la:ated. '. ACENDA ITEM NO. 32 ____ 1.0"""'1 ~ /; PLANNING COMMISSION STAFF REPORT JUNE 21, 2005 Page 6of8 u PROJECT TITLE: CONDITIONAL USE PERMIT NO. 2004-41 AND INDUSTRIAL DESIGN REVIEW NO. 2004-04, LOCATED 32081 CORYDON STREET (APN 370-080-017 &018) . 2. That the proposed use will not be detrimental to the general health, safety, comfort, or general . -welfare of persons residing or working within the neighborhood of the proposed use or the Gty, . or injurious to property or improvements in the neighborhood of the Gty. ' , ' ' . In daOO Wth Sfftian 7.5.5.b if the Lihrty SpWfr Plan the eiryrealizal that the ~al industrial use kmt8d at 32081 Car;don Stn'et rmy haw a paential to.uly inpaa the wifare ifpmcn residing ar 'lOJI'kirf!, WJhin the mffborlxxxi ar the ary Considerirf!, this, st4J has substantiatad that all applicable City lJepartnwts an:!. Ag:rcis lklw am ajfardui the ~ far a ~ miew if the use' am haw irwrparatal all applicable aJI'/711.?I1tS arxI/ ar anditions rrJa1Hl to installation am rrnintenan:e if larxls~ stn'et daiUiztions, regplations if poinis if uhiatIar irrgrfss am egnss am ixntrri' if paential nuisan:l'S, so as to dinimte any ~ irrpaas to the wual' heakh, safety, wirfort, Or wiral wifare if the surrrxmling mwborlxxxi ar the ary , . ' , 3. That the site for the intended use is adequate in size and shape to acc~mmodate the use, and for all the yards, setbacks, walls or fences, landscaping, buffers and other features req~d by the U Liberty Specific Plan. . The~al use kmt8dat 32081 Car;donStn'et has amdesigm in OJ/1Sideration if the size amshape if the prrpen:y, therWy st'rel7f!lhenin6 an:!. enharring the irmRIiate industrial ami. F utther, the f71T'ioct as ~al uiJJ cmplerrent the qualiry if existing deu/opnrnt an:!. uiJJ amte a 'lisually pleasirrt. TKJlFdetraair.e reldtimship betw!en the prr:fiaal am existingf7lT'iros. 4. That the site for the proposed use relates to streets ~d highwaYs with pr6per design boclt as to width and type of pavement to carry the type and quantity of traffic generated by the subject use. The ~al use kmt8d at 32081 0JryIm Stn'et has am red.eual as tq its rrIatian to the Wdth am type if fJa'1EfY1!I7t rmitrl to cany the type am quantiry if ir4.fk wuatai, in that the City has adtquduly erduata:l the paential irrpaas assaiaml Wth the ~al use prior to its appruuJ am has curxlitimm the f71T'ioct to be serral. by muls if adujuate capaary am desif!!l starWrds to praride ratSarnbIe aa5S by em; tn<<ie, trar6it, am bit:yk 5. In approving the subject use located at 32081 Corydon Street there will be no~dverse affect on abutting property on the permined and nomial use thereof. . , . The ~al use has am thorruJiy red.eual am curxlitimm by all applicable, City lJepartnwts amlXltSide A~, dirri:mtirf!, the paential far arTy am all adt.erse ifJocts on the abuttingpruperty. , . " 6. Conditions and safeguards pursuant to Section 9.2 Subsequ,ent Development Entitlements of the Liberty Specific Plan including guarantees and evidence of compliance with conditions have been incorporated into the approval of the Conditional Use Permit to insure development of the property in accordance with the objectives Section 9.2.2. . Pursuant to Sfftian 9.2.2, Carrlitiornl Use Pemit, iF THE Lihrty SpWfr Plan the frvpaal Carrlitiornl Use U Pemit assaiaml to Industrial Dsif!!l Reriew Na 2004-04 kmt8d at 32081 O;ryion Street has am scha1uJaJ fUr OJ/1Sideration am appruuJ if the Plannirf!, CormissWn. ACENDA ITEM NO. rill,.... I. f ;:sz (', (\ (\ PLANNINGffiMMISSION STAFF REPORT JUNE 21, 2005 Page 7of8 PROJECT TITLE: ffiNDITIONAL USE PERMIT NO. 2004-41 AND INDUSTRIAL . DESIGN REVIEW .NO. 2004-04, LOCATED 32081 ffiRYDON STREET (APN 370-08Q-017 & 018) FINDINGS - INDUSTRIAL DESIGN REVIEW NO. 2004-04 1. The project, as approved, will comply with the goals and objectives of the General Plan and Liberty Specific Plan in which the project is located. The Jm11aai Irrlustrial Desii!/lRi:dewkrataJ at 32081 ~ Sbret amp&s Wth the gxJs am d:;<<tires if the GeIrral Plan ani Liberty Sprofr Plan, in that the approud if these iniustrial busirrss park Wl1 assist in ~ in deuJqnrmt if a wJl.WJarm1 ani jitrxtianal rrix if reidentiaJ, aJ1l1Tt1rid, iniustrial, cp:n spare, rrrreztinml ani institutimtl !arJ uses as wJl as ermtra~ iniustrial !arJ uses to dirmify Lake E lsimre's IX1nJI'Iic fuse 2. The project complies with the design directives contained in the Liberty Specific Plan. The Jm11aai Irrlustrial Desii!/l Reziew krataJ at 32081 ~ Sbret is apprql1iate to the site ani s~ deuJqmwts in that the Jm11aai iniustrial busirrss park fus been desigmi in wnsideratim if the size ani shape if the prcperty, thenhy cmtti1rg interest ani 'Ut1)ing 1.istas as a persoo mJU5 ~ the st:nft. Further the prqlrt as Jm11aai Wl1 wrrplem:nt the quality if ex:is~ deuJqnrmt ani Wl1 c:'rfl1te a 1.isualJy p!msinp. rvn-damaire rrlatinnship betwim the Jm11aai ani ex:is~ prqros in that the arrhitu:turaJ desipp, ahr ani nuterials ani site desigl Jm11aai eriderce a W/W7'I for qua&y ani orifinaJiry. 3. Subject to the attached Conditions of Approval, the proposed project is not anticipated to result in any signifIcant adverse environmental impacts. Pursuant to the Ca/ifumia E miramrental ~ityA It (CE 04), the Jm11aai Irrlustrial DesiglReziewkmtai at 32081 ~ Sbret, as been mieutrl am an1itiomJ by all applia:die Gty Dicisims ani Depart:rrents ani A gn:ies, am Wl1 rtt hare a sigpifiamt iffin 00 the emiramrental pursuant to the Habitat A ssessnwt Report daudApril7, 2005. 4. Conditions and safeguards pursuant to Section 92 Subsequent Development Entitlements of the Liberty Specific Plan including guarantees and evidence of compliance with conditions have been incorporated into the approval of the subject project to insure development of the property in accordance with the objectives Section 92. Pursuant to Sa:tim 9.2.3, Desii!/l Reziewif the Liberty Sprofr Plan the Jm11aai Irrlustrial Desii!/l Reziew krataJ at 32081 ~ Sbret has beensch<<Julal for wnsideratim am apJ7rUU1l if the P~ Cormissim. Prepared by: Reviewed by: Approved by: ACEND!: 1m.. r.~.31:, .. PACe I c::) ,,;'~ PLANNING COMMISSION STAFF REPORT JUNE 21, 2005 Page 8of8 u PROJECf TITLE: CONDITIONAL USE PERMIT NO. 2004-41 AND INDUSTRIAL DESIGN REVIEW NO. 2004-04, LOCATED 32081 CORYDON STREET (APN 370-08Q..017 & 018) . ATTACHMENTS 1.. . Exhibit 'A' Vicinity Map 2. Exhibit 'B' Grading Plan, Landscape Plan, Site Plan, Floor Plans, Elevations 3. Exhibit 'C Habitat Assessment Report dated April 7, 2005/LEAP Exhibit 4. . . Exhibit 'D' Grading Plans, Landscape Plan, Site Plan, Floor Plans, Elevations 5. Exhibit 'F' Color and Materials (presented at Hearing) u ,-"t t"... . u ACEND,Il, ITEM NO. 32- PACE 10 OF 10 Cl . n VICINITY MAP CUP 2004-41-12004-04 32081 CORYDON STREET " ',,- ,- ~ / ~ / 'y ~ ,/"~ , / ~ '" ';' "" ' : '" "- c~~ ' "...., ~"1/ /"', , ~~r" / "-... , ~ / ~ I I /...~ '" / / /, ',' '. / / / .' ./' :; , /, , " // ',,- ' '-'''-... I ~ / ; '"" ~ ", / / / / ./ ~ / ~~ " ~.' .~ '~ "" , '''" PROJECT SITE C~ / OA.' . "" / ''''0 '", / '~r "" /. '" ", I" / '~ ""'~ .:--."" <~.~, , ". "" ;/<" "" . , ,/ '" ,~." .:..., "- / I', // '" '" .. . .. / .... r.. // ~ / ' ..., '... / / .,~{~ '.... " " " .. " " PLANNING COMMISSION JUNE 21,2005 ACENDA ITEM NO. ::2..2. ..^"'c \ '1 OF f)t"j RESOLUTION NO. 2005-63 u A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF LAKE ELSINORE, CALIFORNIA, RECOMMENDING CITY COUNCIL ADOPTION OF FINDINGS OF CONSISTENCY. WITH SECTION 6.0 OF THE MULTIPLE SPECIES HABITAT CONSERVATION PLAN (MSHCP) FOR THE PROJCT KNOWN AS INDUSTRIAL DESIGN REVIEW NO. 2004-04 TO BE LOCATED AT 32081 CORYDON STREET (APN 370-080- 017 & 018) . WHEREAS, a site specific focused survey (Habitat Assessment Report) for the Burrowing Owl, Oiteria Area Species, and Narrow Endemic Plan Species was required by the Multiple Species Habitat Conservation Plan (MSHCP) for the purpose of allowing development of an industrial building and associated improvements; and WHEREAS, the Gty of Lake Elsinore evaluated the consistency of the project with the MSHCP; and WHEREAS, public notice of said application has been given, and the Planning Commission has considered evidence presented by the Community Development Department and other , interested parties at a public hearing held with respect to this item on June 21, 2005; and U WHEREAS, the Planning Commission of the Oty of Lake Elsinore has been delegated with the responsibility of making recommendation td the Oty. Council adopting the Findings of Consistency with the MSHCP; and NOW 1HEREFORE, the Planning Commission of the Oty of Lake Elsinore DOES HEREBY RESOLVE as follows: The Habitat Assessment Report prepared by has been prepared by Principe and Associates, submitted and reviewed in accordance with requirements of the Multiple Species Habitat Conservation Plan (MSHCP). The report is complete and adequate in it's evaluation of all environmental effects of the project known as Industrial Design Review No. 2004-04 and will not preclude the implementation of the MSHCP goals, based on the following finding: FINDINGS - Multiple Species Habitat Conservation Plan 1. The proposed project is consistent with the Multiple Species Habitat Conservation Plan A aurrling to the Multiple Sp<<ii3 Habitat Canseru:uion Plan (MSHCP), a Habitat A ssessrmit Report shall h! 1UJUimi to address the pamtial hal7it4t far the Burrouing Oul, Criteria A nit S p<<ii3, arrJ Narrow E rdenii: Plant Sp<<ii3. Sirx:e the Habitat Assess111!l1t Report daudApri17, 2005 fixor/ IV eriderre to support hal7it4t :::J.urrouing Oul, Criteria A nit S p<<ii3 or Narrow E rdenii: Plant S p<<ii3, fUture focus studies are rr.t U . , - 3'2-- - ACENDA ITEM "0._ 06\ _.~'" If/.. OF_ - (\ RESOLUTION No. 2005- 63 June 21, 2005 Page 2 of 2 NOW, TIiEREFORE, bas,ed on the above Finding, the Planning Conunission of the Gtyof Lake Elsinore DOES HEREBY RECDMMEND that ty Council of the Gty of Lake Elsinore adopt the Finding of Consistency with the Multiple Sp cies itat Conservation Plan. Ron LaPere, Lake Elsinore Planning Conunission "i I hereby certify that the preceding resolution was adopted by the Planning Conunission at ameetihg thereof conducted on June21, 2005 by the following vote: " " ., AYES:. Conunissioners: '. . LAPERE', O'NEAL, GONZALES NOES: Conunissioners: (\ ABSENT: Conunissioners: LARIMER i ABSTAIN: Conunissioners: . (\ AGENDA ITEM NO. 32- PAGE 1q OF~ u RESOLUfION NO. 2005-64 A RESOLUfION OF THE PLANNING COMMISSION OF THE aTY OF ,LAKE ELSINORE, CALIFORNIA, APPROVING CONDITIONAL USE PERMIT NO. 2004-41 FOR INDUSTRIAL DESIGN REVIEW NO. 2004-04, TO BE, LOCATED AT 32081 CORYDON STREET- APN 370-080-017 &018 ' WHEREAS, an application has been filed with the City of Lake Elsinore by Peter De La Torre ofR/D Construction to request approval of Conditional Use Pennit No. 2004-41 for Industrial Design Review No. 2004-04 pursuant to Section 7.5.5.b of the Liberty Specific Plan; and . WHEREAS, public notice of said application has been given, and the Planning Corrunission has considered evidence presented by the Community Development Department and other interested parties at a public hearing held with respect to this item on June 21, 2005; ~d WHEREAS, the Planning Corrunission of the City of Lake Elsinore has been delegated with U the responsibility of approving Conditional Use Pennits. NOW lHEREFORE, the Planning Corrunission of the City of Lake Elsinore DOES HEREBY RESOLVE as follows: SECTION 1. The Planning Corrunission has considered the request for approval of Conditional Use Pennit No. 2004-41 for Industrial Design Review No. 2004-04. The Planning Corrunission finds and determines this project is consistent with the General Plan and Liberty Specific Plan. The proposed project has been determined to be exempt from the requirements of the California Environmental Quality Art (CEQA) pursuant to Section 15162, Subsequent EIRS and Negative Declarations. An Environmental Impact Report was certified by the City Council for the East Lake Specific Plan on _' A Habitat Assessment Report dated April 7, 2005 has been prepared pursuant of the requirement of the Multiple Species Habitat Conservation Plan. SECTION 2. That in accordance with Section 7.5.5b, Uses pennitted subject to a Conditional Use Pennit, of the Liberty Specific Plan the following findings for the approval of the Conditional Use Pennit have been made as follows: FINDINGS - Conditional Use Permit No. 2004-41 1. The proposed use, on its own merits and within the context of its setting, is in accord with the objectives of the General Plan and the Liberty Specific Plan in which the site is located. u AGENDA ITEM NO. 32- PAGE ')-1J OF t? t1 ('\ (\ (\ RESOLUTION NO. 2005-64 JUNE 21,2005 Page 3 of 3 6. Conditions and safeguards pursuant to Section 9.2 Subsequent Development Entitlements of the Liberty Specific Plan including guar.uitees aiId evidence of compliance with conditions have been incorporated into the approval of the Conditional Use Pennit to insure development of the property in accordance with the objectives Section 9.2.2. Pwsuant to SIXtion 9.2.2, 0nfitWn:d Use Pemit, if the Liberty Spedfr Plan the ~a:J 0nfitWn:d Use Pemit assa:iat<<i to brlustrial Desif!fl ReUew No 2004-04 kmtad tit 32081 Cor;da-z Strret has bren sdxrJuki for consideration ani appruud if the Planning Om7issWn. NOW, THEREFORE, based on the above Findings, the Planning Commission of the Gty of Lake Elsinore DOES HEREBY APPROVE Condi~onal Use Pennit No. 2004-41. Ron LaP re, Lake Elsinore Planning Commission . Iherebycertify that the preceding resolution Was adopted by the Planning Commission at a meeting thereof conducted on June 21,c2005 by the following vote: ' " .' . AYES: Commissioners: LAPERE, O'NEAL, GONZALES NOES: Commissioners: ABSENf: Commissioners: LARIMER ABSTAIN: Commissioners: ATTEST: R ACENDA ITEM NO. 32- PACE-.2:.LOF r:J ~- RESOLUIlONNO.2005-64 JUNE 21, 2005 Page 2 of 3 u . ' .. In anIer to adieu: a wJJ Wlarml ani ~ ~ if residential, aJ/1Y/l!Iridl, irrIustrial, q;e;. spare, rrDa1liond am institutional tam 1IS15, staff has tharatrfiy eutluata:l the tam lISe a:>>rpatibility, mise, tm/ft: am t1her emironnmtal hazards rriatai to the prrpaai 0nIitiarW Use Penrit pwsuant to the nqui11'Jll!I1tS if the Liberty SfJrJifr Plan lromrl at 32081 Coryion Strret. A a;vrr/ingly, the prrpaailam lISe is in wn::urrem! WJh the Wja:tiws if the Gereral Plan am S~ Plan in WidJ the site lu:aud 2. 1bat the proposed use will not be detrimental to the general health, safety, comfort, or general welfare of persons residing or working within the neighborhood of the proposed use or the Gty, or injurious to property or improvements in the neighborhood of the Gty. In aaIJIli WJh Se::tit:n 7.5.5.b if the Liberty S~ Plan the City realizai that the prrpaai ~trid lISe lromrl at 32081 Coryion Strret =y!:me a paential to .uJy inpaa the wifare if persons residirrt, ar wnkir<< Wthin the mifftborhocd ar the CltJI Onidering this, staff has sulztantiatai that all applicalie Oty Departm:nts am A weiRs haw bren a!Jardai the oppartunity far a tharatg:J miew if the lISe am haw irmrparatai all applicalie anml!l1tS arrl/ar crnIitims rriatai to installatim am rrninten:lm! if Iards~ strret daiications, ~ if points if ~ iJwess am tgrt'Ss am rontrd if paential mtisarm, so as to elirrimte any ~ inpaas to the [pK!Yal health,safty, wnfart, ar g:m-al wifare if the s~ U mig,barhaxi ar the CitJl . .3. 1bat the site for the intended use is adequate in size and shape to accommodate the use, and for all the yards, setbacks, walls or fences, landscaping, ~uffers and othe, features required by the Liberty Specific Plan. Theprrpaai lISelromrlat 32081 CoryionStrret has brendesi~ inamsideratWn if the size am shape if the prrperty, thereby strerlf1hening am ~ the immJiate irrIustrid area. Further, the prrjut as prrpaai WJl anrp/eIrEnt the quality if ex:is~ derdopnrnt am WJl crmte a Usually pleasinf, mn-detrw:tire ~hip !:mum theprrpaaiam ex:is~prrjats. , 4. 1bat the site for the proposed use relates to streets and highways with proper design both as to width and type of pavement to carty the type and quantity of traffic genera~d by the subject use. The prrpaai lISe kmtai at 32081 Coryion Strret has bren mieuaJas to its relatWn to the Wdth am t)pe if pawrent tmIai to amy the t)pe am quantity if tra/fr g:m-atai, in that the Oty has adirjuateiy eutluata:l the paential inpaas assa:iatJXi WJh the prrpaai lISe prior to its approcnJ am has crnIitUnrl the prrjat to be sermi by muls if adejuate atp<u:iry am design starKiards to prmide reasanal:le aa15S by em; trude, =it, am. bicyde 5. In approving the subject use located at 32081 Corydon Street'th~re will be no adverse affect on abutting property on the permitted and nonnal use thereof. . . The prrpaai lISe has bren tharatrfiy mielIHi am crnIitUnrl by all applicalieOty Departm:nts am aitside U. A~, eli.nirn~ thepaential far any am all adrme if/ats on the abuttingproperty. AGENDA ITEM NO. 32 PAGE ~ OF eS tl (\ RESOLUfION NO. 2005-65 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF LAKE ELSINORE, CALIFORNIA, RECOMMENDING CITY COUNCIL APPROVAL OF INDUSTRIAL DESIGN REVIEW NO. 2004-04, TO BE LOCATED AT 32081 CORYDON STREET- APN 370-080- 017 & 018 WHEREAS, an application has been filed with the Oty of Lake Elsinore by Peter De La Torre of RID Construction to request approval of Industrial Design Review No. 2004-04 for an industrial building and associated improvements; and WHEREAS, public notice of said application has been given, and the Planning COmmission has considered evidence presented by the Community Development Department and 'other . interested parties at a public hearing held with respect to this item on June 21, 2005; and WHEREAS, the Planning Commission of the Oty of Lake Elsinore has been' delegated with the responsibility of recommending approval of industrial projects toOty Council. . NOW THEREFORE, the Planning Commission of the Oty of Lake Elsinore DOES HEREBY RESOLVE as follows: (\ . SEctION 1. The phinning Commission has considered the proposed design for the industrial building and associated improvements. The Planning Commission finds and determines this project is consistent with the General Plan and the Liberty Specific Plan. The project has been determined to be exempt from the .California Environmental Quality Act (CEQA) pursuant to Section 15162 and found to be acceptable pursuant to the requirements of the Multiple Species Habitat Conservation Plan; SECTION.2. That in accordance with Section 9.2.3 of the Liberty Specific Plan the following findings for the approval of have been made as follows: 1. The project, as approved, will comply with the goals and objectives of the General Plan and Liberty Specific Plan in which the project is located. Thef7lVJxFallrdUstrial &ignRedewla:aux1at 32081 Cmy;IonStrret amp/iei Wth the gxds am Wjtrtiu:s if the General Plan ani Lihrty Spocific Plan, in that the apprmd if these industrial busiress pa.k Wl1 assist in ~ in deuioprrmt if a wJl.!:darx:Rd am fitrxtiarnl nix if rrsidential, u.v1l11!1rial, irrJustrial, q;en spare, mn?ational am intitutUnd Wc1uses as wJl as erJXXlI'"aging irrJustriallam uses to dnersify Lake E lsimre's IXXJI'VI'YiI:ruse . \ . 2. The project complies with the design directives contained "in the Liberty Specific Phin. (\ The prr:pcsal Irrlustrial &ign Redew lmMi at 32081 Cmy;Ion Strret is ttpfJYr1Jriate to the site ani s~ deu:loprrmts in that the prr:pcsal irrJustrial busims pa.k has been desigmJ in ronsideratian if the size ani shape if the property, thereby cro:tting interest ani ~ 'listas as a persan 11VU5 alorg the strret; Further the prrju.t as prr:pcsal Wl1 rorrp/em!ntthe quality if existingdeuioprrmt ani Wl1 cmtte a 'lisually plmsirT& rxJn-dE1raaiw rrlatimship betuIm the prr:pcsal am existing prrju.ts in that the architectural design, cdor am maerials ani site design prvpaal eUderce a wru:rn f(ff quality am arigjrnlity. <7 2- AGENDA ITEM NO. ~ PACE J- ~ OF RESOLUTION NO. 2005-65 JUNE 21, 2005 Page 2 of 2 u . 3. Subject to the attached Conditions of Approval, the proposed project is not anticipated to result in any significant adverse environmental impacts. PltlSuant tJJ the Gdifamia E rnirrJnrrmtaJ Qiality Act (CE Q4), the prrpa<<i lniustrial Desif!ll RedewUmurJ at 32081 Caryion Strret, as lren redeuai ani aniitWmi by all appliadie City Didsions ani /JepartmInts ani A~, ani WlJ rKX haw a si[!J'1ifimnt ifJfft an the em.irunrrmd pursuant tJJ the Habitat Ass/5snrnt Report daurJApril7, 2005. 4.. Conditions and safeguards pursuant to Section 9.2 Subsequent Development Entitlements of the Liberty Specific Plan including guarantees and evidence of compliance with conditions have been incOIporated into the approval of the subject project to insure development of the property in accordance with the objectives Section 9.2. . PltlSuant tJJ S<<ticn 9.2.3, Desif!ll Redewif the Liberty SpWfr Plan the prrpa<<i lniustrial Desif!ll Redew l=taiat 32081 CaryionStmt has lrensrixJukifarronsideratimani appruud if the Planninjs ComrissUn NOW, 1HEREFORE, based on the above Findings, the Planning Commission of the Gty U of Lake Elsinore DOES HEREBY RECDMMEND TO 1HE aTY mUNaL APPROVAL of 'rulm"'" n.,;gnRmw No. 2004:0<. \Q, I hereby certify that the preceding resolution was adopted by the Planning Commission at a meeting . thereof conducted on June 21, 2005 by the following vote: AYES: NOES: Commissioners: LAPERE, O'NEAL, GONZALES Commissioners: ABSENT: Commissioners: LARIMER ABSTAIN: Commissioners: U to the Planning Commission ACENDA ITEM NO. '32- __~~ /) a-- nl' c;::,~ n CONDITIONS OF APPROVAL FOR INDUSTRIAL DESIGN REVIEW NO. 2004-04 AND CONDITIONAL USE PERMIT NO. 2004-41 LOCATED 32081 CORYDON STREET APN 370-080-017 & 018 (N eft F res listal in the on:Jitions if A Pfl/U1lIl are. the rest estimltes amilalie at the tirre if approraL tbe exaa Ire arrrnnJs Wll k rr?lierud at the tirre ifbuildingpemit issuarre and rmy k rais<<i.) GENERAL CONDITION 1. The applicant shall defend (with COlUlSel acceptable to the G~, indemnify, and hold hannless the Gty, 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 Gty, its advisoty agencies, appeal boards, or legislative body concerning the, - Industrial Project which action is bought within the time period provided for in California Government Code Sections 65009 and! or 66499.37, and Public Resources Code Section 21167. The Gty will promptly notify the Applicant of any such claim, action, or proceeding against the Gty and will cooperate fully with the defense. If the Gty fails to promptly notify the Applicant. . of any such claim, or proceeding, the Applicant shall not, thereafter, be responsible to defend, indemnify, or hold hannless the City. (\ PLANNING DIVISION 2. Approval for Industrial Design Review No. I 2004-04 will lapse and be void unless building permits are issued within one (1) year of City Council approval. The Community Development Director may grant an extension of time of up to 'one (1) year per extension, prior to the expiration of the initial Design Review approval. Application for a time extension must .be submined to the Gtyof Lake Elsinore one (1) month priOftO the expiration date. 3. Conditions of Approval shall be reproduced on page one of building plans submined to the Building Division for Plan Check. All Conditions of Approval shall be met prior to the issuance of a Certificate of Occupancy and release of utilities. 4. Conditional Use Permit No; 2004-41 for the industrial complex shall run with the land and shall continue to be valid upon any change of ownership of the site or structure which was the subject of the Conditional Use Permit (CUP) application. The CUP shall also be subject to periodic review by the Community Development Director or designee. The CUP can be revoked at any time, if after reviewed by the Planning Commission it is found that the applicant has not been in compliance with Conditions of Approval. The revocation process shall comply with Section 17.74.110 of the Lake Elsinore Municipal Code (LEMq. (\ Pagel of 8 AGENDA ITEM NO. :::;?, 2- ".,." ') c; nl' c; C/ CONDITIONS OF APPROVAL FOR INDUSTRIAL DESIGN REVIEW NO. 2004-04 AND CONDITIONAL USE PERMIT NO. 2004-41 LOCATED 32081 CORYDON STREET '.. APN 370-080-017 & 018 _. u 5. All site improvements approved with this request shall be constructed as indicated on the approved site plan and elevations. Revisions to approved site plans ,or building elevations shall be subject to the review of the Community Development Director. All plans submitted. for Building Division Plan O1eck shall conform to the submitted plans as modified by Conditions of Approval, or the Planning Commission! Gty Council through subsequent action.' 6, Structures shall be placed on-site as depicted on the site plan and! or as modified by the Community Development Director or designee. 7. 'Any revisions to the interior floor. plans that could cause the requirement for additional parking shall be subject to the review and approval of the Community Development Director or designee. 8. All roof mounted or ground support air conditioning units or other mechanical equipment incidental to development shall be architecturally screened or shielded by landscaping so that they are not visible from neighboring property or public streets. Any material covering the ,roof equipment shall match the primary wall color. U 9. All exterior on-site lighting shall be shielded and directed on-site so as not to create glare onto neighboring property and streets or allow illumination above the horizontal plane of the fixture. All light fixtures shall match the architectural style of the building. " 10. All'loading wnes shall be clearly marked with yellow striping and shall comply with the requirements of the LEMC . 11. Applicant shall meet ADA (Americans with Disabilities Act) requirements. 12. The applicant shall construct a 6 foot decorative masonry wall with pilasters, along the exterior boundary of the project. 13. All storage areas shall be enclosed with a 6 foot masonry wall and 6 foot opaque gates per the review and approval of the Community Development Director or designee. . '. 14. Trash enclosures shall be constructed per Gty standards as approved by the Community Development Director. A 5' landscaped planter is required on each side of the trash enclosure. 15. No exterior roof ladders shall be pennitted; 16. Applicant shall use roofing materials with Oass <<A" fire rating. u Page 2 of 8 ACENDA ITEM NO. '=3 2 n CONDITIONS OF APPROVAL FOR' INDUSTRIAL DESIGN REVIEW NO. 2004-04 AND CONDITIONAL USE PERMIT NO. 2004-41 LOCATED 32081 CORYDON STREET APN 370-080-017 & 018 17. All exterior downspouts shall be architecturally screened to match the building exterior colors and' architecture. ' . '. . .. ' 18. The Planning Division shall approve the location of any construction trailers utilized during construction. All cbristruction trailers shall require a $1,000.00 cash bond; submit a site plan and processed through the Planning Division. 19.. Materials and colors 'depicted on the plans and materials board shall be used wiless modified by the applicant and approved by the' Community Development Director or designee. 20. On-site surface dTainage shall not cross sidewalks. 21. Parking stalls shall be double-striped with four-inch (4") lines two feet (2') apart. (\ 22. All exposed slopes in excess ot three feet (3') in height shall have a permanent irrigation system and erosion control vegetation installed, approved by the Landscape ArChitectural Consultant and Planning Division. 23. All drive aisles and loading areas shall be kept free and clear of any materials! merchandise so as not to obstruct on-site circulation and deliveries. . 24. Provide a 12-inch concrete paver along the side'of parking stalls that are adjacent to planters (paver to include curb width). PRIOR TOBUlLDING/GRADING PERMITS 25. Prior to issuance of, any grading permit or building permits, the applicant shall sign and complete an "Acknowledgement of Conditions" form and shall return the executed original to the Planning Division for inclusion in the case records. . . ' 26. Three (3) sets of the Final Landscaping/Irrigation Detail Plan shall be submined, reviewed and approved by the Cty's Landscape Architect Consultant and the Community Development Director or designee, prior to issuance of building permit. A Landscape Plan Check & Inspection Fee will be charged prior to final landscape approval based on the Consultant's fee 'plus forty percent (40%) Ctyfee. . a) All planting areas shall have permanent and automatic sprinkler system ~th 100% plarit and grass coverage using a combination of drip and conventional irrigation methods. (\ b) Applicant shall plant street trees, selected from the City's Street Tree List, a maximum of forty feet (40) apart and at least twenty-four-inch (24") box in size. Page 3 of 8 AC'l:'NDAllEM 1110.. 3.2.. . <PAGE. '2::.1A)E~ CONDITIONS OF APPROVAL FOR INDUSTRIAL DESIGN REVIEW NO. 2004-04 AND CONDITIONAL USE PERMIT NO. 2004-41 LOCATED 32081 CORYDON STREET APN 370-080-017 & 018 u '. ,'. c) All planting areas shall be separated from paved areas wim a six-inch (6") high and six-inch (6") wide concrete curb. d) Planting witbin fifteen feet (15') of ingress/egress points shall be no higher.man thirty-six inches (36"). e)' . Landscape planters shall be planted wim an appropriate parking lot shade tree to provide for 50% parking lot shading in fifteen (15) years.. f) Any transformers and mechanical or electrical equipment s\1all be indicated on landscape plan and screened as part of me landscaping plan. ~ All landscaping and irrigation shall be installed witbin affected portion of any phase at me time a Certificate of Occupancy is requested for any building. All planting areas shall include plantings in me Xeriscape concept, drought tolerant grasses and plants. j) Final landscape plan must be consistent wim approved site plan. . k) Final landscape plans to include planting and irrigation details. 27. Applicant shall comply wim me requirements of me Elsinore Valley Municipal Water District. Proof shall be presented to the Ollef Building Official prior to issuance of building permits and final approval. '" 28. Prior to issuaiiceof building permits, applicant shall provide assurance mat all required fees to the Lake Elsinore Unified School District have been paid. 29. Prior to issuance of building permits, applicant shall provide assurance that all requirements of U the Riverside County Fire Department have been met (see attached Conditions of Approval).. Page4 of 8 . . !\CENDA iTEM NO. 32-. PACE ?-. g OF ...0.1- (\ CONDITIONS OF APPROVAL FOR INDUSTRIAL DESIGN REVIEW NO. 2004-04 AND CONDITIONAL USE PERMIT NO. 2004-41 LOCATED 32081 CORYDON STREET APN 370-080-017 & 018 30. Prior to issuance of building permits, applicant shall pay park-in-lieu fee in effect at time of building permit issuance. > 31. The applicant shall comply with Section 17.78 (Noise ControQ of the Lake Elsinore Municipal Code. 32. The Multiple Species Habitat Conservation Fee (MSHO') shall be due upon issuance of each building permit. " , ENGINEERING DIVISION, ' 33. All Public Works requirements shall be complied with as a condition of development as specified in the Lake Elsinore Municipal Code (LEMq prior to final approval. 34. Underground water rights shall be dedicated to the City pursuant to the provisions of Section 16.52.030 (LEMq and be consistent with the City's agreement with the Elsinore Valley Municipal Water Districi. (\ 35. Pay all Capital Improvement, including TIF and TUMP fees, and Plan Check fees (LEMC 16.34, Resolution 85- 26), mitigation fees, area drainage fee, encroachment permit fees and inspection fees associated with the project and its development. ' 36. 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 priorto grading plan approval. > ' 37. An Alquis-Priolo study shall be performed on the site to identify any hidden earthquake faults and/or liquefaction wnes present on-site or a licensed geologist or a geotechnical engineer shall > prepare a statement, stating there are no known earthquake faults or liquefaction zones present. . 38. All street improvements and street lighting along ColJUon Street shall be installed a functioning prior to certificate of occupancy. ColJUon Street is designated as a Major Highway (100/80) on the Master Plan of Streets. Also, the County of Riverside is, currendy constructing roadway , improvements along this property frontage. As such, the applicant shall obtain these plans and revise the precise grading to show the existing (after county construction) and proposed street frontage improvements. Highway stripping on ColJUon Street shall also be shown. 39. Construct all public works improvements on ColJUon Street per approved street plans (LEMC 12.04). Plans must be approved and signed by the City Engineer prior to grading plan approval (LEMC 16.34). ' , (\ Page 5 of 8 AGENDA m:~ NO.-3...2 CONDITIONS OF APPROVAL FOR INDUSTRIAL DESIGN REVIEW NO. 2004-04 AND CONDITIONAL USE PERMIT NO. 2004-41 LOCATED 32081 CORYDON STREET APN 370-080-017 & 018 U 40. Street improvement plans and specifications shall be prepared by a California Registered Civil Engineer. ,Improvements shall, be, designed and constructed to Riverside County, Road' Department Standards, latest edition, and City Codes (LEMC 12.04 and 16.34). 41. All compaction reports, grade certifications, monument certifications (with tie notes delineated on 8 \1" x 11" Mylar) shall be submined to the Engineering Division before final inspection of public works improvements will be scheduled and approved. .. 42. Provide final soils report showing compliance with recommendations. 43. The applicant shall install permanent survey monuments in compliance with the City's municipal code. 44. All improvements plans .shall be digitized. At Certificate of Occupancy applicant. shall submit tapes and/or disks which are compatible with City's ARC Info/GIS or developer to pay $300 ,per sheet for City digitizing. 45. The finish floor elevation of the building shall not be less than 1267 feet. No import material U' from outside the "lake wne" shall be brought in and placed. , ' 46. Applicant shall obtain all necessary off-site easements for off-site, grading or construction from the adjacent property owners prior to issuance oEgrading permit. 47. Apply and obtain a grading permit prior to building permit issuance. A grading plan signed and stamped by a California Registered Civil Engineer shall be required if the grading exceeds 50 cubic yards of the existing flow panern is substantially modified as determined by the City Engineer. If the grading is less that 50 cubic yards and a grading plan is not required, a grading permit shall still be obtained so that a cursory drainage and flow panern inspection can be conducted before grading begins. ' 48. 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. 49. If applicable, prior to commencement of grading operations, applicant to provide to the City . with a map of all proposed haul routes to be used for movement of import/export material. Such routes shall be subject to the review and approval of the City Engineer. 50. 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. . U Page 6 of 8 ACENDA ITEM NO. ~2" DAr-\: L'}-, () OF 6 q .~ n , CONDITIONS OF APPROVAL FOR' INDUSTRIAL DESIGN REVIEW NO. 2004-04 AND CONDITIONAL USE PERMIT NO. 2004-41 LOCATED 32081 CORYDON STREET APN 370-080-017 & 018 51. All waste material, debriS, vegetation 'and other rubbish generated durillg cleaning, demolition, clear and grubbing or other phases of the construction must be disposed of at appropriate recycling centers. The applicant should contract with CR&R, Inc., for recyt;ling and storage container services, but the applicant may use the services of another recYcling vendor. Another' recycling vendor, other than CR&R, hic., cannot charge the applicant forbin'rental or solid waste disposal. If the applicant is not using CR&R, Inc., for recycling seivices and the recycling material is either sold or donated to, another vendor, the appijcant shall supply proof of debris disposal at a recycling center, including verification ohoruiage by certified weigh master tickets. , . l' 52. ArrangementS for relocation of utility' company' facilities (poWer poles, vaultS, etc.) out of the roadway or alley shall be the responsibility of the property owner or his agent. ' 53, Provide fire protection facilities as required in writing by the Riverside County Fire Department. 54. Developer shall install blue reflective pavement markers in the street at all fire hydrant locations, 55. A hydrology and hydraulic study and calculations for the proposed on site storm drainage system (\ shall be submitted and approved prior to issuance of a grading permit. 56. Meet all requirements of LEMC 15.68 regarding flood plain management. 57, The Riverside County Water Quality Management Plan requires this project to prepare a project specific Water Quality Management Plan (WQMP). As such the applicant will be required to prepare a WQMP install BMP's using the best available technology to mitigate any urban pollutants from entering the watershed. The plan shall identify "pollutants of concern" and "hydrologic conditions of concern" , and mitigate in accordance with the Riverside County Water Quality Management Plan. Said plan shall be approved prior to the issuance of a grading or site development permit, 58. Applicant will be required to install BMP's using the best available technology to mitigate any urban pollutants from entering the watershed. Applicant shall provide first flush BMP's using the best available technology that will reduce stormwater pollutants from parking areas and driveways. This would include the use of a biofilter swale or other BMP techniques, Education guidelines and Best Management Practices (BMP) shall be provided to the property owner and! or tenant in the use of herbicides, pesticides, fertilizers as well as other environmental awareness education materials on good housekeeping practices that contribute to protection of stormwater quality and meet the goals of the BMP in Supplement" A" in the Riverside County NPDES Drainage Area Management Plan. (\ 59. All drainage facilities in this site shall be constructed to Riverside County Flood Control District Standards. Page 7 of 8 0'" ~'2- - AC~NtJA. nnil 'tV,_ '.. c:- a DlIr.!; '?::1LOF~ CONDITIONS OF APPROVAL FOR INDUSTRIAL DESIGN REVIEW NO. 2004-04 AND CONDITIONAL USE PERMIT NO. 2004-41 LOCATED 32081 CORYDON STREET APN 370-080-017 & 018 60. Storm drain inlet facilities shall be appropriately stenciled to prevent illegal dumping in the drain system; City Engineer shall approve the wording and stencil. .. 61. 10-year storm runoff should be contained wi~ the curb ~d th~lciO-year storm runoff should be contained with the street right-of-Way. When either of these criteria is exceeded, drainage facilities should be instilled. . . 62. Applicant shall obtain approval from Santa Ana Regio~al Water Quality Co~trol Board for ~eir stormwater pollution prevention plan mcluding 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. , )'. Page 8.of 8 u u u 32~ I\C;E~O:"IiJ:ti1~' OF!Zi- PA(jE2:P-~ :..:...--" 1Il1l-UO-~UUO Inu UI.q~ Nfl lilY VU rlllt tll.t tH^ NU. ~~l ~~~ qtltlo r. uc 05/05/05 07:39 nATIO PERMIT ,ltiverside " CJ::>unt y LII4S' CONDITIONS OF APPROVAL Page: 1 Permit No: FIRECONDS Parcel: 10. GENERAL CONDITIONS 'FIRE "DEPARTMENT 'L:6~~~-V"tr 10.FIRE. 3 CASE . CITY CASE STATEMENT '-DRi\n With respect to'the conditions of approval for the referenced proj-ect;. the "F1rellepartment recommenas the' following fire -protectiorr'meaeures be-provided ''ih ", -accordance wi th 'Riversroe'Coun:t:y,'onttrrances ana/or- recognized fire protection standards: \ lO,FIRE. 4 USE- #O.J.A_~ 'amr.T .jF.PE/COMM. DRAfT (\ THESE CONDITIONS ARE FOR A. SHELL.BUILDING ONLY. ~ Shell building will receive a ,sheJ.l .finaL,anly_ --bIo . Certificate of Occupancy, (human occupant and/or mat~rials) will be issued until the building OCl;l,lpant -has ..been, identified with their occup~ncy classification andAave been cond'itioned ,by Riverside Count;y Fire ,Department. '. ' Occupant or tenant 'identification is imperative for oderly. and prompt"proc-essing. Upon identification of the.occl,!pant'- or tenant a "Fire'-Protecti6nAna1.ysis report maype required prior 1:0 <!S'tahlieh'ing'tfte' requirements for the OCCl!Panc.i':: permit. Failure "to-provide a comprehensive data analysis and/or techn'i:ca'l'l'nf6rmatt'orr accept:-a'ble to the fir'e": department maY'TeBUtt 'in'proj-ectoelays, ' . ~ ""I"'\""F~---"'Q. -iii~- }i:B~",,~'.di<l7'-1:o-"-""g.f-lq?P '~I'l::lnt-""'l" lai.ro1 gf hala..J lu.a t'.....L.......L~J.l-"i'iji3 ''':R",:,''Qt'l'1""i~'""l'''. mnc::rdha- IT,.......u~~8.jni.Ll...:...- dql"~. .&.uc .L:ul.a~....'::'u;;JI..i..s Rgg""'~"""J.' t'n '\ I)l"'npDT"11' ^....~'.!.L......1 ....l........,.....:rr Lt,," .tR..l'tti.....r~rfrf"'\ --"'-,;o;!l'nnrliO r"t'"\ .... 'flV'.......; 19 QfillJ'lJeL___':'_._ d.....L_ _....4/....... l..:.~hl}-. tL""~.........; /""'"::11' \ in f nrm~_:.; .r;". ld~ 'l 1.r~,l--1 ...-..d,n':'.p.,..n-i~... --rt~1-~::"",,"rl. I ~llll-trFmem- .r9I' a .........lIl1-'lt:L~ r'l:re protect1on ::it.UQY .&.U.L Lw...ie.:.. 10.FIRE. 5 USE.~i<l4,.HIGH" PLLS/RACKSTORAGE "ORAf'T . A' separate p",rmit may.be. required, for high~pile storage and/or racke . Sprinkler, ,plans,.and/or..sprinklar.4'eView- muet:": be submit:ted bya licens~,aprink12r contractor wit:h storage and/or rack,plans to .Riv.e.rside.counr.y--S.i.l;e' Department for review and approval.'oithe 20Cll .cfc All't~le . 81 compliance ,Complete Article .8,1 .inLormat.iO.lL.r.e~__-4ll " _ commodities stored, rack dimensiona" placement. in building... sprinkler'd'ensit:-i'es. e,te. must be 'provided wit:h,Bl.l,Ppreaa.iDn: system for racks an%rhigh-pile storage review. A complete li'stTng'oro'C'OIHmodlties. classified ",,; ng..cEC... Article 81, 2001 Edition and NFPA 13, 1999 Edition (\ ,/ ACENDA ITEM NO. PAGE ~? :;S'2 OF~ nHI-U~-CUU~ INU UI" qj HfI Kl V W t IKt r&t tAX NU. .!Jb I !Jbb qllllti 05/05/05 07:39 'Riv~J.<Sidec-'Ounty l;MS CONDITIONB.OF'-AFPROVAL. PATIO PERMIT Permit No.;. FI.RECONDS . parcey. : 10. GENERAL CONDITIONS J 10.FIRE. 5 USE-#D.4 ~HIGHlULE/RACK STORAGE- (eont.) guidelines by a licensed Fire Protection.~n~~ (or 0Ehec consultant approved..by. t.his jurisdiction). (cul'l'ent plan check deposit base fee is $348.00) lO.FIRE. 6 USE~#50.~BLUE.. DOT. REFLECTOR. Blue retroref~ec~vs-pavementrnark~rB.ahall.he'mounted on pri vate stree!;..,. publ.ic .st.reets.aDd ..dri.VB'~"YB.-to .iRdi.ea~ "'_ location,of fire hYlirant.a..~r.to..in.stall~ion"'Plaoement.. of markel'BlIlUS.t....he. "pprovJ;d. by" the -Ri4f<&H1ide .~CU1rty'..pjTe- Department. lO.FIRE. 7 'USE*"#23-MIN REO FIRE FLOW Minimum l'equ.i..red :,f.ire .Ll.ow.~ll"ge',s~ -GPM'for-a-~-iro= . . durae.ion a.t. .2.0. PSI.. residual opera-IAug"p,Y'@Bsure. which mus!;" be available before .<inY . combusl:ible .. matez:.i.l- :is~ plaeed- on-l the JOI:> Site. Fire flow is baaed on . type 'SZ...l.fff..:.- . '. construction ,per.the -200 1 ~BC '-and, BuB:di-ng fs) -nav-rng'-a"'ft:re" sprinkler ~ystem. . 10.FIRE.S l.ISE-#20 "SU~-F.IR&. HYDRANT Super fire hyd.rant ts) <'6~!x4~x2. 1/2'1.} .ahall. be 'located not ", less than 25 feet or more.t:ha.n.J.6.5-faat.f~om-any,-poJft=ien"ef"'; the bUilding.,aa.,measured,along. approved -vehicular' travel ways. 10.FIRE. 9 USEd184. r.TANJ{"PBRMITS,. .r Applicant or Developer.'shall.be. respon..ible. for' obtaining.... under / aboveground.Luel ..-chemi~ ..and 1lI1x.ed .-li-quid-~to1"age tank permits, from the Rivera1de..CoWltY'...Fire Department and. Environmental HealthDE:pa.l'tments....PJ.ans .nu...t...I:le-aubmH.Eed .~ for approval prior to inat.a.llat.i.on. Aboveground,'fuel/mixed. liquid'tanks (s) shall meet the .faIlow.in9....sJ:andol~..~k -' must be t.ested and labeled to U~085. PJ:Ot.ectedT~ Standard or SWRT'rr-OL The test must incJ.ude~he l Pl'ojectile Penetration Test and the Heavy Vehicle. 'Impact: , Test. A'sainpTe"copy'of the tank r a label.fr.am .an" i nrl",p"'ldent": test laboratory must be included with YOllr plans, (current.,,", plan check"depos:Lt.baae- ..ree.i:s -$2:l-7~lHr ,fur .firet-- t=anki--eaeh.' additional tank $32.00.) ACENDA ITEM NO. _ _ __ ""l..." 1'. UJ "Page: 2 u -GRA~T DRAfT DRAFT u . '"DlUIFT DRAJi'T .~ u -s2. __ r:.11 ... nHI-U~-~UU~ IMU UI:qj Hn KIV ~U ~JKt r~t ~AX NU. ~bl ~bb 4tltlo P. 04 05/05/05 Jli=xsiae.County"1.MS 07:39 CONDITIONS OF APPROVAL nATIO PERMIT Permit No: FIRECONDSParcel: "Pa9'e: -3 10. GENERAL CONDITIONS 10.FIRE. 10 USE -#.8.9 c.RAl?.lll . HAZMAT -BOX ,DilAFT ,. Rapid ent:ry Hazardol.ls. Material .daUl.aruLJcey..srnn"J'" -C<<h~t shall be installed on tha outsi.de.of the. building. .PlaniO-... shall be submitted to the . Riveraide .County..Fixe.-Dap.artm",;tJ for a~val prinr t~~st~ation. (current plan check deposit base tee is $126.00.); 10.FIRE. 11 USEc#25..-GAXE...EN"'RANCES _ DAAfT Gate entrances shalL be at. .least two .feet. wider than the., width of the traf'fic lane/a) ..aerting. that...g4te..-AnY-9ste' providing aCCesstrom a road to a driveway shall be locat..ed. at least 35 feet from the rOad\Ol.qy. andcShall .nr'''''J t.o-al.low-4l_ vehicle to stop wit.hout obstructing ~fic on the road. Where a onecway road'with a si691e traffic lane..prQ~~ access t.o a gate entrance, a 40 foot turning radius shall be used. (\ 10. FIRE. 12 .-USE*~#.88AryAUro/MAN.GA'l'ES Gate I~') ahqll..be .automai:.U;:.or -m<i-Ru.al()pe-'~.-ntiflimum 2.:::-+' feet iT!-- widJ:.h...wi.th..a..aatback.of, .35. .feet . from face of .... curb/flow line. Gate..acCel'l.a."h" ll..he.-eql.lipped--with.a'le'apitl"; entrY...B'i!i!tem_ Plans. "h"ll.bec snh'llit.t;ed. to.t~\Fire Department for approval.pr.ior..to in"",, 11 ",. i 011. '. Automatic/manual gilte p~ns shal.l be.rar.ea.with.Shear pin force, not to exceed 30 foot paunas. .Automat.U;: g""es f'h~ll~ be equipped with emergency. backup 'POWeJ::. Gates activated., by the --rapid' entry system shall rema-inQpen. un" i 1 .C'1 nQg.-'l..; by the~apid entry .s~stem. (current plan check deposit base fee .is $IZ'6.001 -DRm"T 80. PRIOR TO BLDG PRMT ISSUANCE FIRE DEPARTMENT BO.FIRE. 1. .. USE--#J.1A~BI.DG.cPL.>cN -('RECooK'-$ ---nAAFT Building Plan check. .-jgp,,~j t---basa..f,ee.-()f~1,-056.--ilO ,.-sha-}-l-~ paid in.a check-or. money_ =~. t.o--the..Riverside County Fiz;e Department after. plans.have...been "ppyn"ed --by..aur--~f'I':i;ee. aO.FIRE. 2 USE-#4-WATER.PL/lIIl":' --DRAFT The appllcilUt or developer shallseparat:'cly. ",;,hmi" 'two' , copies of the water system plana to t.he Eire Department tor- review and'--approval. Calculated velocities ahall not exceed (\ " f~()"IWA ITEM NO. . PACE 3i? ?;2. OF l?~_ nHY-U!)-tUU!) IHU UI:qj An KIVl;U FIJ<1:. P&1:. FAX . NO. 9b19b5 4886, 05/05/05 07:39 .Ri ve=Ul,e. County.J:,j\4S CONDITIONS OF APPROVAL PATIO PERMIT Permit No: FIRECONDS Parcel: 80. PRIOR TO BLDG PRMT ISSUANCE 80.FIRE. 2 USE-jf.4-.WATER -l'IANS :{.Cont.l 10 feet per ~econd. P.lans.u.Bhal~ .conform -U)..th.e--Li.za'.AydR~ types, Iocation and spacing,. .and. the.s..y,Sl:.em.ahal.l meet the. fire, flow requirements. Plans.sh411.be .~ed.and "pp""""ed.: by, a registered civil eng~neer andLtha local water company with the following certification: "Icertify._that...the ~ design of the water system is in accord~nrp w~~e requi rement;l>:prea-cribed.. .QY . theRi vpy<: i tip.: r", In I- Y .E.iJle Department." 90. PRIOR TO BLOG FINAL INSPECTIgN FIRE DEPARTMENT 90.FIRE. l' .USE "#A5." FJRS.l.AJIlES The applicant .Bhall.prepaxe .and--submit-to.the..-Ri.lre Department for app!:ov.a!...-',o...liI, i.e, e.pl<mde~nating"~~~l:"ed fire lanes with ~EPro'priate ..lane. f''' i nl- i n~J. "nfl/or.' . 90.FIRE. 2 0SE-#l2-SPRINKLER SYSTEM Install a'-eomple-t:e"fi':te' 'sprinkTer .system per' NFPA 13' 1999 J edition (13D and BR -system are not aTlowea) . in a1:1 buildingsoorequ-:iting"a"fire'-fIOW of'lSOO'GP/l1-or greate'r., Spz:-inkler ayswm(s) :wittr-p~e-"si'"2:e-s -in excess of '4" in -- diamter wH.Lx'"'}ttire' the 'project: sr:ructuralengineer to.. certify (wet,,":i9rnlture) -the13tabili:ty"of..the~buTTalng - 13ystem"f=..,APi """,p:'and 'grav'ity 'loads' t'o support. the sprinkler, syatem-.A11-fire''13Prinkler'Ti'Bers-Shai.l -be"-' protprtpd .trOl1\-. any .physieal. .damage:' The' post; indicator valve and. fire ~ar-1:.lllent..eon_ction""hll:l-l--be lU<.:<tLt:d-r:o' ~- the f1:Ont... wi.thin.5.Q"feet. of a. hydrant; . and~a"'lIfi:nimum of 25. feet from t.he.hlli lriin~ts)_,.A..st<iiltement,th6t.-tne . . ---l bUilding,(pJ. will be. automiOt.ically. fi,re"8f>cinlc.l.ed. 'must be. included on t.he-title.page--D.t--the_bl.li-ldiflg"plaftS. (cun:ent.."'I'''"' n.kler..pJ.an.checl<'depos-ir' base-f-ee' is- - $614.00-. per riser) I"plicant ox:.develoQe.r_ sh~b&-,'rasponeible- to' install a . L.'\ Central S.tation .~nn; rnrpd.F.i:re..Ala.lll.8ySt-em..--+leni-t:-ormg system shall moni.toJ::. thef.ira ~i.nk.lar, . ayst.e1ft(.a) 'water. flow. P. I . V. 's. and al~ =t.Lol . v.aJ..ves. ,,1l.l;;>.ns .-must--j.,e submitted to the Fire Dep,;u:tment. for approval.pr.ior to '1 installation. Contact fire d.epar.tJl\enr.'..far 9\ddeline-h,mdeut> (current-rno~it:ori~-~tan'checkdeposit base fee is $192.00) . I . P.05 . 'P~,:~ u '.~Ii'T . DRAFT DRAF:T u '. u '~2 _ AC.ENOA \1EM NO._ F '21{ PAC\:_ ~(p 0_ MAY-U~-2UU~ THU 01:44 AM RIV CO FIRE P&E FAX NO. 951 955 4886 05/05/05 n7:39 ~ATIO PERMIT Permit No:FIRECONDS (\ n "Riven:ride'County LMS CONDITTONS OF APPROVAL . . parcef : 90. PRIOR TO BLOG FINAL INSPECTION 90.FIRE. 3 .USJ::c#2:J~EJi.TIJI1GUISHER.S Install port:i'lhl p fire_extiJlguishers...wiLh'~'Rli-n:i,mulI\ ~at'i-"9 of 2A-10BC and sigr.tage.. Eiz:e.Ext.inguliihelfs- .locat:ed in pUbl'iS areas shall be in recessed .....hi nPtB -JIlOUnt:ed --48 u.{i-GGhe&I----oo- center above floor 'level.with.maXimum..4" prej.ection ,from ~ the wall.' Contact Filfe P",parl:menl: f.ar,pr.oper.pLu:e1"~lJ.t~"': equipment plfior to installation. ACENDA ITEM NO. PACE ?., 1 P. 06 Page: 5 'DRAFT '=32. 01: f0 (;f . -4i' I I ""111 I! 'd II li~I!l1 !Yl~'ll:, III II II w___ ~!in:l! 11~~!~!1 j! 1r ( .1" . ~!i!lllli , 'n~ l;" ~ liP' .11... ~lIle.. ,I {: ~"'-"\err . , . I I '~i ~IO (P" II I' ,i' I !.!i1,hi, ;..: . Ii iI ~ Ii .{ (, " :!i I i! III 6hY j,5 i~l~ ilij i II ~! Iii ~:~! B . i III: !li.l i I Ilillii! I ,ill'! II!", III 111MII, I II !~.lll ~il' ~~; i~ii!!!l!!~,.l ~l ~,~.~~',Ii ml,'I!~i!!I!IU!liI1~~i!~~! iMllli!I~,! 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"'z: ~... i15!~~ ~~IIII~ 50 D" ti; :i~ Eo ~.. ~, II. L , i ~ ~ I u //0 ""''''.......""." ~ O'I'OHfMJ.I.YO:J ~IOU II .. lfWd993NllnlIli)N'H9V3 __ ~ .. "O:INI Jmlr0H4" .IJI5INS auu. I > . __ J 1(7~. Ill".' .~_"w., --,~- Pf " '!I II' _W:l_J_.-..q"""""'_ J U ---.ri'i""O.O NOIl821Q . _ _ ~ j IIk,:m ~lIOdM.:ilN ~ I ~IJ ~q IH ~;Ihn i u I:: ".. .....". 4 ..........e.. ~. , ~II B I ,aB I II I 0.... J'lSj ._15r lilii Jill I~I!I li!1 lift ~I(i J 'II 'II Il'f 1"1 .. Ill, W, I " J, ,11", I, i = I i I .:; > z = ~ ~~ ~ i~ @ . . II I ,I ~ IlIt : j hi ~ Ii-I, II ~ hi" I. III I. II !! l\!!1I 11.1 ~5 III h dI ~ , I ''''I' l\!!1I . :!:!!Ill-' II 1111 JI"I D= ! ! =z . .:/,::::' ~ j~ :/' @ I m~~1 ' , . @g ...8 I!&, =1 I I. B I I . , I'I J.I 'I . " It IllIi h.! IIII11 !f,'b 'J'!J.!' II ul llll ~ I ; II .! I I I ! .. 115~11! p I ..- i I' I h H J .. . HI' ! I " .. 1111'1 I P "'nl! . AGErmA ITEM NO. :2- PACE ?JIlL.! I I(~ :t~'I' I .~_.."'- ~-,...'- .. . _'1;1_1_______ H II! ~.o ,'NO'II.a " ' 11m, I ~KOdM:!IN 1- - - - - ~ - - - - -'-=l r r I I 0f:9l,lIV:)~3>lW1 ! U m'mI NYaMflX) ~8Gtt .. )lWdS93Hl908"3)lV1J.M .11 . -- "" HY1d !IcIY':>>SGNn .u:tVNllU'Blld . I llf I 'I iI' 2 'i I It' w II. <Il IHi Ii! w iHi Il/ ..I lal l- ... Z ,~ &<-;;.. 0 ID !.:'li-.'-:~ ~ f'''O,,:;,; ~:';ll" .... ,. . I ,I u , () ACENDA ITEM NO. 3'2 40 OF ~ Ie ~ ill'm1m' I .. ~.-'-'" ~_...,- . ~ Ii Ui _'O':>_l.llZ....-a___OOO A I:~,ilh ~.~~Dd~;:N 1- - -""'-~'- -- --I I II !; !! I I 1 ! - J ----~- -~~--------- d I . , ~----~---------- I' .' . ' - ~ - -----..........-- ----'-- ~ - - - ,I ----~- ------------------------------- ----~-- ~--------------------~------- I I I I I III !m~8 ,I II !; I~ otsz.e'f':).~133W1 <M:>/:tNYOAtO:)lllOZl: _dS93Nl9Otl"3>l't'li.9V3 NV'W nIB I . ! I i I! ... , j c . I 1!!!!llE: ~~ ~'" d" ",," @lit ~.. :;) J!(l!!s ::3 ^"ENDA ", NO. "u . '1\',', F" CijO\- DACE ..,'--~ - [ gr ~ Illi . _ _ ~ ~ Uhlililtl 1iLU__ :... 0Lu_(~ ,_ _r.:>_WU....:J........OOO ~1ll(O N911i13:a ~llOdA\:!IN ~v::>~n3Wl ~N'I'Q.UtO:)~tolt 'llWd S93M9n8 3)fy1.L9'l'3 --~~I u _ J r;;, l~ I l J' 1< I .; ~j i:J1l I~!~ i ;:~ . --ulmr--u~~--,u-Wl~--h~- I:: 1 '" ~# d!~' f ~--.l '" I ' 'II I illl hli ~.t~ It.oj' . . . ~H ~ " !: i ~ -- ~ '" ~!! z ~' - i ~ ~ Ii, II J ~ ~ j ~l ! I I' J~ ' I . I, r 'I f:i !! ll(' :~!' :,. I~'~ I~ I L..J ' ~---"\---------~--t-----' , I , ~ I ' :l ' I . -- u_u_ --u-i--~u-l_-- , , I , 1'1 ',lll I~~ .Mn411OO"1d1 .~ ~ ~ ,U q I J ~ ~ <- -l <- -l u ACENDA ITEM NO. t7 t-\ .-PACE~OF -- rt IV" .~ "I" 'I I . .' U ,I . _ _~. ~. D~..iili ..........._4 aou_l,,'_ _10_1'.....-.___.-0 ~.D "NOI$3cJ. .LlIOdM:!IN f~~ II. l:' 2 ~ ~!Ol , .. IHI ." I ; ii!1 I ,Ii · i lilt !In 1111 ~ ~lh i _ . ~... I . . : If } ~I ~ \ /1 - " &::1; \ 1/ ..' --'1 fi1~v :.1= '. 'I " (' l!J, .it .'. . .' . 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'I ~I ~I II ~ , I " I j , l" . 1 i jrJ .... . , ;,' ~ ; ! ..1 ~~i .r, I ,~ !I" I, , t, ~ -I~ . 11,11 i" . I (. ~ ,., o '. .'. : ',;,: ';' , '", -:i '.;1 / , / , . /. ~ " 1111. -> 'I 0 .;1 .' .. ~~I .,'" . ACENDAITEMNO. o:z.,'2--:.G-4-.". J . PACE.'1l:2iJlF ~ . I ... 01 ~ 'U . . Z. t---t' <( ~ w. ~ <( ~ Ul Ln ,,- , U) Q' U ,,-, w ~, ::s ~ ,,- <( Ul ... U Q) .~ o I~ V' of l. OJ .~ o I- a.. ,,- . . :.Jl [ I[~ un'l' ,~..."~-, --,,~- II . _or.,_1"O<*'"_____ Iu~mii ;,,,;;;od:;;:N ~'t':)'3ij(lNI9133W1 O<<I~N\'GA,l:tO:)ltolX JoRNd893Hl9fl83)fy'1.1SY3 NOI,I.:8S OHtcnlntl V r-- , , , ' " .( L- 1/ "- , R .. 1"'-/ 1"- / . , , , " . - ~~JJ __I u u u ACENDAITEM NO, 2- . PAOE!J.t.{. OF '0 q (\ n (\ HABITAT ASSESSMENTS APNS 370-080-017 and 018 2.7 Acres Surveyed West side of Corydon Street, between Cereal Street (N) and Como Street (S) in the southeast comer of the City: a portion of Section 21, Township 6 South and Range 4 West of the USGS Topographic Map, 7.5 Minute Series, Lake Elsinore, California Quadrangle The address of the site is 32081 Corydon street. PREPARED FOR: RO CONSTRUCTION 32081 Corydon Road Lake Elsinore, California 92530 (951) 245-0777 PREPARED BY: PRINCIPE AND ASSOCIATES 40485-0 Murrieta Hot Springs Road Suite 113 Murrieta, California 92563 (951) 699-3040 pro _fauna@earthlink.net PRINCIPAL INVESTIGATOR: Paul A. Principe (same as above) SURVEYCONOUCTEO BY: ' ,'.,,04 ~' -~aul A. Principe -. C \J~ 0..... V\ '.~ . ~ ,/,' , - . SURVEY CONDUCTED ON:" >' _ ~ - March 2, 2005. '!'t ' ~~~, ~~'\~~- A>' t;.I'. "0 (i,....).l . ~" , HEPORTDATE: April 7, 2005 . . AGENDA ITEM NO. -' :2,) PACE 40 OF_t;q- u PRINCIPE AND ASSOCIATES CONSULTING BIOLOGISTS 40485-0 Murrieta Hot Springs Road Suite 113 Murrieta, California 92563 (951) 699.3040 (951) 699-3050 Fax pro~fauna@earthlink.net April 7, 2005 Project Planner CITY OF LAKE ELSINORE PLANNING DEPARTMENT 130 South Main Street Lake Elsinore, California 92530 u Subject: APNs 370-080-017 and 018 Habitat Assessments. .. Dear Project Planner, Principe and Associates was hired by RD Construction to prepare habitat assessments on Approximately two acres of land located on the west side of Corydon Street, between Cereal Street (N) and Como Street (S) in the southeast comer of the City: a portion of Section 21, Township 6 South and Range 4 West of the USGS Topographic Map, 7.5 Minute Series, Lake Elsinore, California Quadrangle (see Location Map attached). The address of the site is 32081 Corydon Street. The purpose of the field survey was to determine the presence-absence of the following animal and plant species on the site before an officelwarehouse project is approved: One predatory bird species: the Burrowing owl (Athene cunicu/aria hypugaea). Eight Criteria Area Plant Species: San Jacinto Valley crownscale (Atrip/ex coronata var. notatior). Parish's brittlescale (Atriplex parishil). Davidson's saltscale (Atrip/ex serenana var. davidsonii), Thread-leaved brodiaea (Brodiaea filifolia). Round-leaved filaree (Erodium macrophy//um). Smooth tarplant (Centromadia pungens var. /aevis). Coulter's goldfields (Lasthenia g/abrata var. counen). and Little mousetail (Myosurus minimus). u ~t)p.\1EM NO.~ PAGE~Of' (\ Project Planner Apri17,2005 Page 2 Seven Narrow Endemic Plant Species: Munz's onion (Allium munzii), San Diego ambrosia (Ambrosia pumila), Many-stemmed dudleya (Dudleya mutticaulis), Spreading navarretia (Navarretia fossalis), California Orcutt grass (Orcuttia califomica), Hammitt's c1ay-cress (Sibaropsis hammettii), and Wright's trichocoronis (Trichocoronis wrightii var. wrightii). . SITE INFORMATION The'site is the existing business location for RD 60nst~uction::' 'It' includes an ~ffice trailer, materials storage containers, outdoor materials storage and equipment parking. One exotic tree species was planted on the site. The site is located along the perimeter of the Skylark Airport. (\ Site, topography has been previously graded flat. There are no natural topographic features or irregularities remaining on the site.. Soils at the site have been mapped as belonging to the. Hanford-Tujunga-Greenfield Association, which have a surface layer of sand to sandy loam on alluvial fans and flood plains. Compositio,n of the native soils appears to have been mixed with construction materials over time. Natural watercourses or any other kinds of aquatic features are not present on this site (Le., vemal pools, stock ponds, etc.). Site surfa~e vegetation consists of a few square feet of invasive, non-native' species, growing under disturbed conditions (see Biological Resources Map and Site Photographs attached). . Most of site.is developed. There are no oak trees or sage scrub plant communities growing on this site. . Ruderal plant species have succeeded into the southeast comer of the site where there is less vehicular traffic. Species included Brame grasses' (Bromus diandrus and B. madritensis), Cheeseweed (Malva parviflora), Common fiddleneck (Amsinckia menziesii), filarees . (Erodium botrys and B. cicutarium), Oat grasses (Avena barbata and A. fatua), Pineapple weed (ChamomHla suaveolens), Short-pod mustard (Hirschfeldia incana), Wild barley (Hordeum murinum). and Wild radish (Raphanus sativus). . . . The only wildlife species observed on site was' the Desert cottontail (sylvilagus audubonii). Diagnostic sign and burrows of California ground squirrels (Spermophilus beecheyi) were al~o found o.nthe site, but in low numbers. (\ ~CENDA /'r,.;- .. .. ,,,_:c~~O. ~ Project Planner April 7, 2005 Page 3 u HABITAT ASSESSMENT~ Predatory Bird Species A Burrowing owl habitat assessment involves conducting complete visual and walk-over ' field surveys to determine if a site contains either suitable habitat or occupied habitat. Burrowing owls may use a site for breeding, wintering, foraging, and/or migration stopovers. Occupancy of suitable burro""ing owl habitat can be verified at a site by an observation of at least one burrowing owl, or,. alternatively, its molted feathers, cast pellets, prey remains, eggshell fragments, or excrement at or near a burrow entrance. Burrowing owls exhibit high site fidelity, reusing burrows year after year. A site should be assumed occupied if at least one burrowing owl has been observed .occupying a burrow there within the last three years. . Based on the Burrowing Owl Consortium's Survey Protocol and Mitigation Guidelines, an assessment was made of the presence of Burrowing owl habitat on the project site, U including a 150-meter (approximately 500. feet) buffer zone around the project boundary, The site 'N9~ surveyed on March 2, 2005. During the field surveys, Burrowing owls were not observed. . Critical habitat features were not discovered (i.e., rodent or other burrows used for roosting or nesting), nor was diagnostic sign (i.e., molted feathers, cast pellets, prey remains, eggshell fragments, or excrement at or near a burrow entrance). There was no evidence of either active habitat presently being used by Burrowing owls, or habitat abandoned within the last three years on the project site. In summary, the site is not occupied by the Burrowing owl and also does not provide. habitat for this species. For these reasons, focused surveys are not recommended at this site. Plant Species Required growing habitats and substrates for Criteria Area Plant Species are not present on the site: floodplains (seasonal wetlands) dominated by alkali scrub, alkali playas, vernal pools, and , to a lesser extent, alkali grasslands restricted to highly alkaline, silty-clay soils in the Traver-Domino-Willows Association for the San Jacinto Valley crownscale, u ACENDA ITEM NO. -32- D^,": . 4-rz n1: c:, q n Project Planner April 7, 2005 Page 4 alkali vemal pools, alkali annual grassland, alkali playa, and alkali scrub components of alkali vemal plains on Domino, Willows and Traver soils for Parish's brittlescale, alkali vemal pools, alkali annual grassland,alkali playa, and alkali scrub components of alkali vemal plains with Traver-Domino-Willows Association soils for Davidson's saltscale, gentle hillsides, valleys and floodplains in semi-alkaline mudflats, vemal' pools, -mesic needlegrass grassland, mixed native and non-native grassland, and alkali grassland with clay or alkaline silty-clay soils for the Thread-leaved brodiaea, open cismontane woodland and valley and foothill grasslarid on clay soils for the Round-leaved filaree, (' alkali scrub, alkali playas, riparian woodland, watercourses, and alkaline grasslands primarily on alkaline soils for the Smooth tarplant: alkali scrub, alkali playas, vemal pools, and alkali grasslands on Traver, Domino and Willows soils for Coulter's, goldfields, and vemal pools and within the alkali vernal pool and alkali annual grassland components of alkali vemal plains on alkaline soils for theUttle mousetait - Required growing habitats' and substrates for Narrow Endemic Plant Spedes are not present on'the site: '. . mesic exposures or seasonally moist microsites in grassy openings in coastal sage scrub, chaparral, juniper woodland, valley and foothill grasslands in clay soils for Munz's onion, ,,' open floodplain terraces or in the watershed margins of vemal pools with Garretson gravelly fine sandy loams and sparse non-native grasslands or ruderal haMats in association with river terraces, vemal pools and alkali playas on Las Posas loam in close proximity to silty, alkaline soils of the Willows Series for the San Diego ambrosia, clay soils in barrens, rocky places and ridgelines, as well as thinly vegetated openings in chaparral; coastal sage scrub and southem needlegrass grasslands on clay soils for (' the Many-stemmed dudleya, vemal pools and depressions and ditches in areas that once supported vemal pools with saline-alkaline soils for the Spreading navarretia, ACENDA ITEM NO. '2j2 "^",, II~ nc c::,OJ Project Planner April 7, 2005 Page 5 u vernal pools with alkaline soils and southern basaltic c1aypan for the California Orcutt grass, ' ' ' ' chaparral and valley and foothill grassland at elevations of 700 to 1,100 meters on clay soils for Hammitt'sclay-crest, and ' alkali playa, alkali annual grassland and alkali vernal pools with alkaline soils for Wright's trichocor.oni~. The completed project will not, then have ,an impact on biologicai ,resources (see Biological Resf)urces/Project Footprint Map attached). General Based on the final Western Riverside County Multiple Species Habitat Conservation Plan (MSHCP) (adopted June 17,2003), the project site is located within a proposed U Conservation Planning (MSHCP) Criteria Area (see MSHCP Conservation Summary Report attached). ' . In addition, Section 6.0 of the MSHCP, the MSHCP Implementation Structure, imposes all other terms of the MSHCP, including but not limited to requirements concerning riparian/riverine areas and vernal pools, narrow endemic plant species, urban/wildlands interfaces, and' appropriate surveys set forth in, Sections 6.1.2 (Protection of Species Associated with Riparian/Riverine Areas and Vernal Pools), 6.1.3 (Protection of Narrow Endemic Plant Species), 6.1.4 (Guidelines Pertaining to the Urban/Wildlands Interface), and 6.3.2 (Additional Survey Needs and Pro,cedures)., . , . - . Section 6.1.2: Riparian/riverine area and vernal pools are not present on the project site. Therefore, the biological functions and values of riparian/riverine areas and vernal pools do not exist. As such, the protection of associated amphibian, bird,' fish, invertebrate -, crustacean, and plant species is not required. Also, the project has no direct or indirect relationship to existing wetland regulations. Section 6.1.3: Based on Figure 6-1 of the MSHCP, it appears that the site is located within Narrow Endemic Plant Species Survey Area 2. This Habitat Assessment addresses all of the MSHCP Narrow Endemic Plant Species listed from Survey Area 2. u ACENDA ITEM NO. 32 PACE. 00. OF C7Q , (\ Project Planner April 7,2005 Page 6 Section 6.1.4: The site is located in close proximity to a MSHCP Conservation Area. It is located along the perimeter of the Proposed E~ension of Existing Core 3 (Lake Elsinore Soils). Therefore, the project may be subject to Guidelines Pertaining to the Urban/Wildlands Interface (Le., drainage, toxies, lighting, noise, invasives, barriers, and grading/land development). It appears that the relationship of the site to the existing Skylark Airport will be the determining factor in how the.guidelines will be implemented. r\ Section 6.3.2: Based on Figures 6-3 (Amphibian Species Survey Areas) and 6-5 (Mammal Species Survey Areas), the site is not located in an area where additional surveys 1;3re needed for certain species in conjunction with MSHCP implementation in order to achieve coverage for these species. . AS the site is located within Criteria Area Species Survey Area 2 (Figure 6-2) and the Burrowing Owl :Survey Area (Figure 6-4), habitat assessments have been prepared for all of these species. Thank you for your attention to the above-mentioned matters. If you. have any questions or comments, then please call me at (951) 699-3040. .1 hereby certify thaUhe statements fumished above and in the attached exhibits present the data and information required for this Burrowing Owl Habitat Assessment to the best of our ability, and that the facts; statements and information presented are true and correct to the best of our knowledge and belief. Sincerely, PRINCIPE AND ASSOCIATES ~tl.~ [ , Paul A. Principe Principal n .. Attachments: Location Map . Biological Resources Map Site Photographs Biological Resources! Project Footprint Map MSHCP Conservation Summary Reports AGENDA ITEM NO.' . -=?, 2- ___ .pACE C3 \ OF ~ :'2:':;,' ;i~I' ..~, ~ ~ :.-x 8> ii!i;-; .~?~:;;;Y0'~j~ ~::o5J .1ff;'>L:;. ". hJ~} ~c':',;(~;::zi,1'~J~ tic:' .;.cJJ ......>.:... :..:.\ ~'i'.~~~)i~&~<f~ ~ U .~. ........(t~rrriJ..:....:.. ~{~lli~~lil ,.'>.l ':','\ .. '~:r..;y~p., . ~0, .~- '152' :.~:.; ,.,...-:....'( 'b ,;~~'C':.>,.,g:-~ ~(( rll 1.:- .;. ":'.] :'........... ~.~-;:). 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" ".. o Do"> , "I, ,.,oi .' . . , ~ "'.~Ib .... (' Survey area: 2.7 acres BnOLOGICAL RESOIUIRCESI IPRO.JECT IFOOTIPRII\'JT MAP I o lliJ APNS 370-080-017 AND 018 I 150 I Feet 300 . PRINCIPE AND A)>fOCIATES AGENDA ITEM NO. ;S2 PAGE 01 OF---.6.L Riverside County Integrated 1.Jject (RCIP) Page I of2 Riverside County Integrated Project (RCIP) Proposed Multiple Species Habitat Conservation Plan (MSHCP) () APN Cell Cell Group Acres Area Plan Sub Unit 370080017 Not A Part Independent 0.73 Elsinore Not a Part 370080017 5131 Independent 0.87 Elsinore SU3 - Elsinore 370080018 Not A Part Independent 0.81 Elsinore Not a Part 370080018 5131 Independent 0.08 Elsinore SU3 - 8sinore HABITAT ASSESSMENTS Habitat assessment shall be required and should address at a minimum potential habitat for the following species: APN Amphibia Burrowing Criteria ,Area Mammalian Narrow Endemic Special Unkage Species Owl species species Plant species Area 370080017 Yes 2 2' 370080018 Yes 2 2 Burrowing Owl Burrowing owl. () Criteria Area Species 2) San Jacinto Valley Crownscale, Parish's brittlescale, Davidson's saltscale. Thread-leaved brodiaea, Round-leaved filaree, Smooth Tarplant, Coulter's goldfields, Little Mousetail Narrow Endemic Plant species 2) Munz's onion, San Diego ambrosia, Many-stemmed dudleya, Spreading navarretia, California Orcutt grass, Hammitt's clay-cress. Wright's trichocoronis ' If potential habitat for these species is determined to be located on the property. foCUsed surveys may be required during the appropriate season. Project Status Riverside County is nearing the end of a comprehensive planning effort called the Riverside County Integrated Project (RCIP). RCIP integrates three regional planning efforts; a County General Plan, a Community and Environmental Transportation Acceptability Process to determine present and future road-way infrastructure; and a Multiple Species Habitat Conservation Plan (MSHCP) to conserve listed and sensitive species and their habitats. The final MSHCP was approved by the County Board of supervisors on June 17, 2003. The MSHCP is a comprehensive, multi-jurisdictional effort that includes portions of Western Riverside County and fourteen cities. Rather than deal with endangered species on a one-by-one basis, this Plan focuses on the conservation of 146 species. The MSHCP proposes a reserve system of approximately 500,000 acres of which approximately 347.000 acres is currently within public ownership and 153,000 acres are currently in private ownership. An approved MSHCP will contribute to the economic viability of the region by providing landowners. developers, and those who build public infrastructure with certainty, a ""C~""'., ",,-i'~r;'iMO. .'::l.~ "_,"v,.", '0-: ~ . ,PA(;E, 0~ Of' . . . 0, u , ''''.;. ~ ,; I !1el5: i ~il iR g",.. ~i!l e "l~~ !~!~ l~g~~ gg .e \:.:dH: ..'HI u!l! Z,~i! -.;;;r Y:' \ ;... ~ I ~~l/'l ~.".O ,",00 cn..,j.~ ll.OO U~Z ;J e~ ::g ~ a; () co 'E In 'r;: .r;: Q) s .e. e C5 g co 0.. lL 0.. o t5 t5 I " " UJ .[ '[ ::;; 0.. "- nl~ . .2- , ACE~~A~lEMNO.P.. 6L . _._~ t:;ct OF ... () o o (\ CITY OF LAKE ELSINORE REPORT TO CITY COUNCIL TO: MAYOR AND CITY COUNCIL FROM: ROBERT A. BRADY, CITY MANAGER DATE: JULY 12,2005 SUBJECT: WASHINGTON, D.C.LOBBYING SERVICES REQUEST FOR PROPOSALS BACKGROUND A request for proposals for Washington, D.C. lobbying services has been prepared for consideration and approval by the City Council. (\ DISCUSSION Increasingly, cities must turn to professional lobbyists to compete for scarce federal aid and grant assistance. Lobbying provides a cost-effective extension of City staff and Congressional staff to obtain federal assistance that benefits constituents in the areas of public safety, transportation, recreation/environment and economic development. The City Council approved a line item in the current budget to fund contract Washington D.C. lobbying services. Because the City of Lake Elsinore has not previously engaged a Washington, D.C. lobbyist, the Council directed staffto prepare a request for proposals for lobbying services. The attached Request for Proposals details the scope of work, including developing the City's legislative goals in a strategic plan, preparing funding requests to Congress and federal agencies, drafting letters of support or other requests, preparing issue briefings and reports on matters affecting the City, meeting with the City's Congressional delegation, federal grant notifications and related lobbying services. (\ FISCAL IMPACT None at this time. Issuing the RFP will have no significant fiscal impact aside from the cost oflegal advertising. Funding oflobbying services is included in the City Council budget for Fiscal Year 2005-06 (a total amount of $150,000 is available to fund both ""~~A n"L,:d ~~Q;. ~/ i? o;.~ '7 lobbying services and consulting services for branding/marketing). The cost for U lobbying services will be addressed after proposals are received and evaluated during the selection process. RECOMMENDATION Authorize the City Manager or his designee to publish the request for proposals for Washington, D.C. Lobbying Services. Discuss the Council's preference for handling the RFP evaluation and selection process. PREPARED BY: MARK DENNIS, INFO.!COMMUNICATlONS MANAGER APPROVED FOR AGENDA BY: '" , o.j ., , . , ~r&.ili~O. ",~,.." 'L "'" u u 33 CI n Request for Proposals (\ Washington, D.C.lobbViDlg Services (\ lulY 12. 2005 CllV of lake Elsinore 130 SoUlb Main St lake Elsinore. CA 92530 .~~l1SJ iJO. ,,~ ~ .3 (}", 'l.. ',." , CIIJ 01 lake Elsinore BFP: Washington. D.C.lobbVing Services Table 01 Conlents Introduction ........ .................................................................................. ....................... ...................................... I Qualifications.:.. .................................. ........,................... .......................... ................ ..... ................ ............... ....1 Purpose. ............. ....................... ................................................................................. .................... ........... ......... I City Background................................................................................................................................................1 Scope of Work............................................................................... ....................................................................2 Deliverables.... ..... ....... ........... ................ ........ ............ .......................... .........................:.......................... .......... 3 Exclusions.... ............. ............ ................ ..... ................................... .................. ......... ........ .......:............ ..............3 Initial Term of Agreement...............................................................................................................:.................4 Submission of Proposal Requirements ..............................................................................................................4 Evaluation Criteria........................................... .:............................................................................................... 5 u Inquiries.............................................................................................................................................................5 U RFP-LE_LobbyingJev_d 07/06/005 11 ~'""",,,""o ,tu~ hi . . . I 33 u /> ClIlI 01 lake Elsinore RFP: Washington, D.C. lobbYing Services (\ IDIndlcUln The City of Lake Elsinore is requesting proposals (RFP) to provide lobbying services in Washington, D.C. to obtain federal funding, to identify and pufsiie grant opportunities through advocacy, a~d to provide . - congressional earmarks in the federal budget for programs and projects that benefit the City. The successful firm will have extensive federal lobbying experience.' Qulmc8lllns The desired Washington Representative to the City of Lake Elsinore will have strong credibility among legislators and a solid reputation in Washington, D.C.; will be familiar with municipal agency issues and needs; will have comprehensive knowledge of advocacy and federal processes, agencies, and officials; and will be capable of successfully representing the City's best interests with demonstrable results. " . PmlJIII As one of California's fastest growing cities, Lake Elsinore is increasingly challenged to find ways to meet expanding infrastructure needs, to improve public services,to pay for regulatory mandates, and to comply (\ with environmental regulations. With fierce competition for federal assistance, it is essential to retain professional lobbying services in Washington, D.C. to work on the City's behalf. CItY Blc_ond Incorporate~ in 1888, the City of Lake Elsino~e is an original Southwest California boom town that is emerging as one of the fastest growing cities on the I-IS corridor. Today, theCity encmnpasses approximately 39 square miles, with a population of over 38,000. The Ortega mountains provide a scenic backdrop to the Elsinore valiey and its dominant feature, a 3,300 acre water body named Lake Elsinore. Lake Elsinore is Southern California's largest natural lake and is open year-round for water-skiing, personal watercraft, wake boarding, camping, fishing and day use recreation. The lake offers Southern California's . I ' . . " ~' " ,,1 . ' . , ' , only open speed zone for power boating. A lake-type inlet also serves as a water'sports concession and competition area, which played host to the X games in 2000. Lake Elsinore's air thermals draw sky divers and hang gliding enthusiasts from all over the world. A motocross sports track in the back basinalso contributes to Lake Elsinore's reputation for extreme sports and recreation. New housing and commercial construction are fueling the largest growth boom in the City's 117 .year history. "Big Box" retail/commerCial stores opening in FY 05-06 include Costco, Lowe's, Home Depot, (\ Target and others. The existing Lake Elsinore Outlet Center has capacity for over 100 retailers and is ~..u,,,,..j 00. ....- ;,:;- 07/06/005 33 Cf ^'" RFP-LE _ Lobbyin~rev _ d 1 CitJ 01 lake Elsinore RFP: Wasblnllton. D.C.lobbVing services undergoing a $4 million dollar renovation. A new GMCIPontiac/Buick auto dealership is also under construction. () This fiscal year, the City's first "big box" commercial developments will trigger a quanll!m leap in sales tax ' revenue. Sales tax is projected to contribute $5.4 million, or 22% oqotal revenue. , ' The City adopted a balanced budget for FY 05-06. Public safety is the City Council's number one budget priority. The addition of three full-time sworn officers and the opening ofa new fire station in the Canyon Hills area account for increased public safety expenditures. The City formed the Lake Elsinore Redevelopment Agency (RDA) in 1980. The RDA was instrumental in renovating historic do~town Main Street (preserving a '20s theme) and construction of The Diamond Stadium in 1994. Total spectator capacity is 15,000 using grass berm seating and temporary infield seating for concerts and special events. Currently, the RDA has a license agreement with the Lake Elsinore Storm' professional baseball team, the Single 'A' affiliate ofthe San Diego Padres. Public safety, the lake, Diamond stadium, world-renowned air. thermals and natural scenic beauty are among Lake Elsinore's unique assets. The City'swebsite URL is www.Iake-elsinore.org. ' ., u 3. Representative will review federal executive proposals, legislation ,under consideration, proposed and adopted administrative rules and regulations and other Washington developments in advising the City of such items that may affect a City policy 'or program; 4. Representative will secure and furnish detailed information as may be available on federal programs in which the City has an interest; 5. Representative will 'review and comment on proposals the City prepares for submission to federal. agencies when requested to do so'by the City Manager or designee; 6. Representative will maintain liaison with the City's Congressional delegation and will assist the delegation in any matter which the City determiries to be in its best interest; .'j u RFP-LE_LobbyingJev_d 2 , ,07/06/005 ' ~iw.J~O. 33 (' (\ CllJ 01 lake Bslnore RFP: Wasblnlllon. D.C.lobbVIng Services 7. Representative will counsel with the City regarding any City appearance before Congressional committees and administrative agencies, and will arrange for appointments and accommodations for City personnel, as needed; 8. Representative will contact federal agencies on the City's behalf when City applications are under consideration by such agencies and take necessary action to obtain favorable consideration of such applications; , ' , ..' " 9. Representative will provide grants services (e.g., access to an online grants locator database, or a proprietary database such as eCivis) to enable designated City users to search for grants, set up profiles and grant notifications, and receive periodic alerts on grant opportunities. 10, Representative will act in the name of the City of Lake Elsinore, California with the title Washington Representative to the City Manager. DellV8nbl8s The Washington Representative engaged by the City will provide the following deliverablesas required, though this is not an exhaustive list: I. Strategic Plan outlining the City's legislative goals, federal agenda, timeframe, and written objectives needed to achieve legislative goals; 2. Funding Requests to Congress and federal agencies as needed; 3. Draft letters of support or letters of request for assistance and other correspondence; 4. Briefing sheets, talking points and other Washington meeting materials; 5. Written, oral, PowerPoint or electronic reports; , ." . 6. Meeting liaison and facilitation with the Conliessional delegation; 7. Preparation of testimony for congressional hearings; ., . 8. Legislative briefs, executive summaries; 9. Grant alerts and application'materials. belultDDI The Washington Representative eng~ged by the City: n 10. Will not represent the interest of local 'constituents ,of the City inpursuit of federal business; RFP-LE_LobbyingJev_d 3 .. 07/06/005 ~:w1 00.: 1;0. 31 - CItY ollalle Elsinore . IFP: WashlnUlOn. D.C.lobllJlng Services II. Will not represent the City before Congressional committees or in any judicial orquasi-judicial. hearing conducted by hearing boards or examiners of federal agencies, boards or commissions; u 12. Will not perform any legal, engineering, accounting, or other similar professional servic.es. , ~ . IBlUal Term 81l11r8eDl8nt Lobbying services and scope of work will be incorporated into an agreement for a period of twelve (12) months from the date of execution of the agreement. SldJDJIsIIDD 81 Pr8POS8I 1IBlI0Ir8D18D1S I. Background statement regarding firm's capabilities and understanding of the City's requirements; 2. A summary ofthe firm's approach; 3. A statement of commitment to perform the work within the given time period; 4. Identification of the person or persons who will be responsible for lobbying services, including client list and relevant experience; 5. Resumes or background information on each team member's education, professional experience while employed by firm and/or subcontractor; u 6. A minimum of two (2) references from other public agericies, private sector clients, and/or local government where the firm has performed lobbying services. Please include names, e-mail addresses and phone numbers of persons to contact; 7. A cost summary for the proposed work, including an hourly rate schedule for all persons associated with lobbying activities; 8. The location ofthe office from which the work will be done. Other Submittal Conditions: I. The deadline for proposals is close of business day, 5:00 P.M., Thursday, August 25, 2?05. 2. The proposal must be mailed or delivered to the attention of: Mr. Robert A. Brady, City Manager City of Lake Elsinore 130 South Main St. Lake Elsinore, CA 92530 3. Submit one (I) signed original and four (4) copies of the proposal clearly marked "Washington D.C. Lobbying Services Proposal for-City of Lake Elsinore." U RFP-LE _ LobbyingJev _ d 4 07/06/005 ~m!\iIDJ i{O. J3 <? n Clt!l el lake Elslnere RfP: Washington, D.C.lobbJIng Services (\ 4. The City of Lake Elsinore reserves the right to reject any or all proposals, to compare the relative merits of the respective proposals, and to choose that proposal or components of those proposals which, in the opinion of the City, will best serve the'interests ofthe City. 5. Proposals shall be considered good for ninety (90) days from the submittal deadline. 6. Each proposal prepared in response to this RFP shall be done at the sole cost and expense of each proposing firm and with the express understanding that no claims against the City for reimbursement will be accepted. halU8lll. CrIlIrla The RFP response will be evaluated based upon the detailed information provided. The City reserves the right to request follow-up information or clarification from vendors in consideration. The table below illustrates the evaluation criteria weighting: (\ No. Criteria Weil!ht I. Qualifications 20% 2. Approach/Responsiveness 20% 3. QualityfReputation 20% 4. References 20% 5. Cost 20% Total 100% IDqulrles Inquiries about this request for proposals must be in writing and directed to: Mark Dennis Information/Communications Mgr. City of Lake Elsinore 130 South Main St. Lake Elsinore, CA 92530 Phone: 951.674.3124 il07 E-mail: mdennislallake-elsinore.orl! (\ RFP-LE _ LobbyingJev _ d 5 07/06/005 ~WIi.l"l,,'HI~I;;O. /7 1) ~ u u u