HomeMy WebLinkAboutItem No. 3CITY OF
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DREAM EXTREME.
REPORT TO PLANNING COMMISSION
TO: HONORABLE CHAIRMAN
AND MEMBERS OF THE PLANNING COMMISSION
FROM: TOM WEINER
ACTING DIRECTOR OF COMMUNITY DEVELOPMENT
DATE: DECEMBER 1, 2009
PROJECT: FIRST AMENDMENT TO DEVELOPMENT AGREEMENT
BETWEEN THE CITY OF LAKE ELSINORE AND PARDEE
HOMES, SUCCESSOR -IN- INTEREST TO PARDEE- GROSSMAN/
COTTONWOOD CANYON
OWNER
& APPLICANT: PARDEE HOMES
Background
The City of Lake Elsinore ( "City ") and the applicant, Pardee Homes, successor -in-
interest to Pardee - Grossman Cottonwood Canyon ( "Developer') entered into a
development agreement recorded with the Riverside County Recorder on July 19, 1990
as document number 265632 (the "Original Development Agreement'). The Original
Development Agreement, among other things, vested certain land use development
rights for a project formerly known as Cottonwood Hills and now known as Canyon Hills
( "Canyon Hills ") on land owned by Developer located within the City. The Original
Development Agreement has a twenty year term.
In furtherance of the development contemplated for Canyon Hills, Developer prepared
and City approved a Specific Plan for the property. The Specific Plan has been
amended twice since its adoption. Development of the Specific Plan has commenced
and has been diligently pursued over the past several years. Developer has
constructed or made substantial improvements to several regional roadways, including
Railroad Canyon Road, Cottonwood Hills Road (now Canyon Hills Road), Cottonwood
Canyon Road, Lost Road and Holland Road at a cost in excess of $40 million.
Due to economic and market conditions that have occurred outside of the control of
Developer, full development of the remainder of Canyon Hills will not occur during the
initial term of the Original Development Agreement. Therefore, the City and Developer
desire to extend the term of the Original Development Agreement by an additional
AGENDA rl EfA Igo. 3
PAGE ( OF _
PLANNING COMMISSION STAFF REPORT
AMENDMENT TO PARDEE DEVELOPMENT AGREEMENT
DECEMBER 1, 2009
twenty years to enable full completion of the development of Canyon Hills based on
current market expectations (the "First Amendment "). The First Amendment is
requested pursuant to the provisions of California Government Code section 65868 and
the Lake Elsinore Municipal Code section 19.12.120.
Analysis
The First Amendment proposes to extend the term of the Original Development
Agreement by an additional twenty years. This extension of the term of the Original
Development Agreement will enable full completion of the development of Canyon Hills
within a more reasonable schedule.
The First Amendment provides three critical benefits to the City and the Canyon Hills
community.
First, Pardee's commitment under the Original Development Agreement (and
implementation agreements thereto) committed Pardee to contribute approximately $3
million to the Community Park by way of direct contribution and a development
agreement fee credit. The expected cost of that Park exceeds $7 million. Under the
First Amendment, Pardee is obligated to deliver a turn -key Community Park consistent
with an approved development plan that will provide significant recreational facilities. No
credit will be provided for development agreement fees, which Pardee will pay as
required in the Original Development Agreement.
Secondly, Pardee's existing commitment to a nearby neighborhood park was capped at
$235,000. Again, the expected cost to develop the neighborhood park is in excess of
$325,000. Pardee will be again obligated to provide a turn -key park under the First
Amendment without a cap on costs.
Finally, Pardee has agreed to allow for formation of
within the future development areas that will provide
ensure funding of maintenance for these parks. At
approximately $500,000 per year for park maintenanc e
other purpose.
Environmental Determination
a Community Facilities District
for a special tax assessment to
build -out, this fund will provide
and cannot be diverted for any
Development contemplated within Canyon Hills has been reviewed and mitigated in
accordance with that certain Environmental Impact Report certified for Canyon Hills.
The First Amendment does not effect any changes to the scope of development
contemplated for Canyon Hills. Instead, the First Amendment will extend the amount of
time that Developer has to complete development of Canyon Hills. In addition, the First
Amendment modifies the financing structure for the completion of the project. The
mitigation that was imposed in connection with the Environmental Impact Report for
Canyon Hills contemplated build -out of the property. At build -out all mitigation will be in
Agenda Item
Page of D
PLANNING COMMISSION STAFF REPORT
AMENDMENT TO PARDEE DEVELOPMENT AGREEMENT
DECEMBER 1, 2009
place. No further evaluation of the First Amendment is necessary according to the
California Environmental Quality Act (Cal. Pub. Res. Code §§ 21000 et seq.)
Recommendation
It is recommended that the Planning Commission adopt Resolution No. 2009 -
recommending to the City Council of the City of Lake Elsinore approval of an
amendment to the development agreement by and between the City of Lake Elsinore
and Pardee Grossman for Cottonwood Canyon.
Prepared by: Barbara Leibold
City Attorney
Approved by : Tom Weiner" _ �l
Acting Director of Community Development
Attachments
1. Resolution No. 2009 - recommending to the City Council of the City of Lake
Elsinore approval of an amendment to the development agreement by and
between the City of Lake Elsinore and Pardee Homes, Successor -in- Interest
to Pardee Grossman /Cottonwood Canyon.
2. First Amendment to Development Agreement by and between the City of
Lake Elsinore and Pardee Homes, Successor -in- Interest to Pardee
Grossman /Cottonwood Canyon.
Agenda Item a
Page a Of -
RESOLUTION NO. 2009-
RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF
LAKE ELSINORE, CALIFORNIA, RECOMMENDING TO THE CITY
COUNCIL OF THE CITY OF LAKE ELSINORE APPROVAL OF AN
AMENDMENT TO THE DEVELOPMENT AGREEMENT BY AND
BETWEEN THE CITY OF LAKE ELSINORE AND PARDEE GROSSMAN
FOR COTTONWOOD CANYON
WHEREAS, the City of Lake Elsinore ( "City") and Pardee Homes, successor -in-
interest to Pardee - Grossman /Cottonwood Canyon ( "Developer") entered into a
Development Agreement recorded with the Riverside County Recorder on July 19, 1990
as document number 265632 (the "Original Agreement ") which, among other things,
vests land use development rights for a project formerly known as Cottonwood Hills and
now known as Canyon Hills ( "Canyon Hills "); and
WHEREAS, the Original Development Agreement has a term of twenty years;
and
WHEREAS, in furtherance of the development contemplated by the Original
Development Agreement, Developer prepared and City approved a Specific Plan, two
amendments to the Specific Plan, and various other Development Approvals that
collectively herein are referred to as the "Project" for the property covered by the
Original Development Agreement; and
WHEREAS, due to economic and market conditions that have occurred outside
of the control of Developer, full development of the remainder of the Project will not
occur during the initial term of the Original Development Agreement; and
WHEREAS, pursuant to the provisions of California Government Code section
65868 and Lake Elsinore Municipal Code section 19.12.120, City and Developer desire
to extend the term of the Original Development Agreement by an additional twenty
years to enable full completion of the Project within a more reasonable schedule (the
"First Amendment "); and
WHEREAS, Government Code section 65867 requires that the Planning
Commission review the proposed amendment to the development agreement and make
a recommendation to the City Council regarding whether to approve the amendment
and whether the amendment is consistent with the City's general plan; and
WHEREAS, public notice of the First Amendment has been given, and the
Planning Commission has considered evidence presented by the Community
Development Department and other interested parties at a public hearing held with
respect to this item on December 1, 2009.
NOW THEREFORE, THE PLANNING COMMISSION OF THE CITY OF LAKE
ELSINORE HEREBY RESOLVES, DETERMINES, AND ORDERS AS FOLLOWS:
AGENDA ITE74 NO. 3
PACE 4 OF
PLANNING COMMISSION RESOLUTION NO. 2009-
PAGE 2 OF 4
SECTION 1. The Planning Commission has considered the First Amendment
and finds and determines that the because the First Amendment relates to an extension
of time and revision to financing terms of the previously- approved elements of the
Project, the First Amendment will not have a significant impact on the environment. Any
development that occurs as a result of the First Amendment has been previously
evaluated and analyzed under the Environmental Impact Report certified for the Project
and other related environmental determinations. No further evaluation of the First
Amendment is necessary according to the California Environmental Quality Act (Cal.
Pub. Res. Code §§ 21000 et seq.).
SECTION 2. That in accordance with Government Code Section 65864 - 65869.5
and requirements of the City of Lake Elsinore Municipal Code, the Planning
Commission makes the following findings recommending to the City Council approval of
the First Amendment:
1. The proposed amendment is consistent with the objectives, policies, general land
uses and programs specified in the General Plan.
The First Amendment to the Original Development Agreement addresses funding
mechanisms and procedures to ensure the Canyon Hills Project is constructed and
implemented in accordance with the General Plan.
2. The proposed amendment is compatible with the uses authorized in, and the
regulations prescribed for in the Canyon Hills Specific Plan document, which is
where the real property is located.
The First Amendment addresses funding mechanisms and procedures to ensure the
Canyon Hills Project is constructed and implemented in accordance with the
approved Canyon Hills Specific Plan.
3. The proposed amendment conforms to the public convenience and general welfare
and reflects good land use practices.
The First Amendment supports the Project, which will construct residential uses,
park areas, an elementary school, and open space areas. These proposed land
uses are compatible with surrounding uses and activities which also include
commercial and residential uses. As shown in the Canyon Hills Specific Plan, these
proposed land uses reflect good land use practices and will protect to the public
welfare.
4. The proposed amendment will not be detrimental to the health, safety and general
welfare of the community.
The First Amendment will ensure that the Project is allotted a reasonable amount of
time in which to complete development of the land uses contemplated in the Canyon
Hills Specific Plan. These proposed land uses are compatible with surrounding uses
and activities which also include commercial and residential uses. As shown in the
Agenda Item No.
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PLANNING COMMISSION RESOLUTION NO. 2009 -_
PAGE 3 OF 4
Specific Plan, these proposed land uses reflect good land use practices and will not
conflict with the general welfare of the community.
5. The proposed amendment will not affect the orderly development of property or the
preservation of property.
The First Amendment will ensure that the Project is allotted a reasonable amount of
time in which to complete development of the land uses contemplated in the Canyon
Hills Specific Plan. These proposed land uses are compatible with surrounding uses
and activities which also include commercial and residential uses. As shown in the
Specific Plan, these proposed land uses reflect good land use practices and will not
conflict with the general welfare of the community.
6. The Amended Development Agreement is consistent with the provisions of
Government Code Section 65864 - 65869.5.
The form and content of the First Amendment is consistent with the requirements of
the Government Code.
SECTION 3. This Resolution shall take effect from and after the date of its
passage and adoption.
PASSED, APPROVED AND ADOPTED this 1st day of December, 2009, by the
following vote:
AYES: COMMISSIONERS:
NOES: COMMISSIONERS:
ABSENT: COMMISSIONERS:
ABSTAIN: COMMISSIONERS:
Jimmy Flores, Chairman
City of Lake Elsinore
ATTEST:
Tom Weiner
Acting Director of Community Development
Agenda It (o No.
Page of
PLANNING COMMISSION RESOLUTION NO. 2009-
PAGE 4 OF 4
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE )ss.
CITY OF LAKE ELSINORE )
I, TOM WEINER, Acting Director of Community Development of the City of Lake
Elsinore, California, hereby certify that Resolution No. 2009- was adopted by the
Planning Commission of the City of Lake Elsinore at a regular meeting held on the 1st
day of December 2009, and that the same was adopted by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Tom Weiner
Acting Director of Community Development
Agenda Item No. 3
Page 7— of
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Recording Requested By and
When Recorded Return to:
City Clerk
City of Lake Elsinore
130 South Main Street
Lake Elsinore, CA 92530
Fee Exempt - Gov't Code §6103
(Space above for Recorder's Use)
FIRST AMENDMENT TO
DEVELOPMENT AGREEMENT
BETWEEN
THE CITY OF LAKE ELSINORE
AND
PARDEE HOMES, SUCCESSOR -IN- INTEREST
TO PARDEE - GROSSMAN /COTTONWOOD CANYON
Approved , 2010
Ordinance No.
Chapter 19.12 Municipal Code
Canyon Hills
QCFI<I'DA 1 ' E'A N®.
PACE 0
FIRST AMENDMENT
TO
DEVELOPMENT AGREEMENT
(Canyon Hills)
This First Amendment to Development Agreement ( "First Amendment ") is
entered into between the City of Lake Elsinore, a municipal corporation and political subdivision
of the State of California ( "City"), and Pardee Homes, a California corporation, successor -in-
interest to Pardee- Grossman/Cottonwood Canyon, a general partnership organized and existing
under the laws of the State of California ( "Developer ") to be effective on the date this First
Amendment is approved by the City Council. City and Developer are sometimes referred to
collectively as the "Parties."
RECITALS
A. City and Developer have entered into a Development Agreement recorded
with the Riverside County Recorder on July 19, 1990 as document number 265632 ( "Original
Development Agreement "). The Original Development Agreement, among other things, vests
land use development rights for a project formerly known as Cottonwood Hills and now known
as Canyon Hills ( "Canyon Hills ") on land owned by Developer located in the City. The
Original Development Agreement has a term of at least 20 years. Developer is the owner of the
portion of Canyon Hills described in Exhibit "A" hereto.
B. With Developer's consent, the Specific Plan has been amended twice
since it was originally approved. All references herein to the "Specific Plan", "Project" and
"Development Approvals" shall include the Specific Plan and other Development Approvals and
any amendments thereto to which Developer has consented in the past or consents to in the
future.
C. Pursuant to the Original Development Agreement and the Development
Approvals, Developer constructed or made substantial improvements to several regional
roadways, including Railroad Canyon Road, Cottonwood Hills Road (now Canyon Hills Road),
Cottonwood Canyon Road, Lost Road and Holland Road at a cost in excess of $40 million.
Pursuant to Sections III.A and III.B of Exhibit E to the Original Development Agreement,
Developer has fully satisfied any and all obligations for the funding and construction of public
roadway improvements and the Project is exempt from participation in any City-wide,
subregional or equivalent road improvement program or freeway interchange program except the
Railroad Canyon Road Benefit Reimbursement District Ordinance.
D. In order to implement certain provisions of the Original Development
Agreement and Development Approvals relating to fire protection services and facilities and
park improvements, City and Developer entered into that certain Public Facilities and Services
Financing Agreement dated as of June 24, 2003 (the "Public Facilities Agreement. ") The Public
Facilities Agreement provided for, among other things, the terms of Developer's funding and
construction of a fire station and the Developer's consent to include all of the then - unoccupied
portion of the Project in the City's first community facilities district established to levy a special
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tax for public safety services. The Public Facilities Agreement also provided for financing of
only a portion of the cost of a community park within Planning Area 18 of the Specific Plan (the
"Community Park "), certain terms relating to two neighborhood parks and one parkway park
within the Specific Plan area, of which the "parkway park" and "Neighborhood Park No. 1" have
been completed. One of the purposes of this First Amendment is to provide entirely for the
funding and construction of the Community Park and the PA 27A Park and to provide for the
establishment of a community facilities district over the remaining unoccupied portion of the
Project to levy a special tax for maintenance of the Community Park, the PA 27A Park, public
open space and street lighting. As such, this First Amendment shall supersede in its entirety
Article III of the Public Facilities Agreement.
E. In order to implement certain provisions of the Original Development
Agreement and Development Approvals and other regulatory approvals, Developer has agreed to
dedicate approximately 950 acres of natural open space to the City and has acquired and
dedicated for public purposes over 160 acres of off -site, natural open space, all of which
preserves significant natural habitat.
F. City has established City of Lake Elsinore Community Facilities
District No. 2003 -2 (Canyon Hills) ("CID No. 2003 -2 ") encompassing portions of the Project
and has designated improvement areas of CID No. 2003 -2 (each, an "Improvement Area ") for
the purpose of levying special taxes and issuing bonds to finance public improvements. The City
and Developer have entered into that certain Funding, Construction and Acquisition Agreement
dated as of February 1, 2004 (the "Acquisition Agreement ") with respect to the CID No. 2003 -2.
G. Due to economic and market conditions that have occurred outside of the
control of Developer, full development of the remainder of the Project will not occur during the
initial term of the Original Development Agreement. Provisions in the Original Development
Agreement acknowledge Developer's discretionary control over timing and phasing of
development of the Project in order to respond to changed circumstances in the land
development and real estate industry.
H. This First Amendment relates to the timing and financing of
previously- approved elements of the Project, will not have a significant impact on the
environment and is consistent with the Environmental Impact Report certified for the Project and
other prior environmental determinations and with the requirements of the California
Environmental Quality Act.
I. Pursuant to the provisions of Section 65868 of the California Government
Code and Section 19.12.120 of the City's Municipal Code, City and Developer have determined
to extend the term of the Original Development Agreement by an additional twenty years to
enable full completion of the Project within a more reasonable schedule to accommodate
changes in economic conditions and the housing market.
J. After giving appropriate notice, the City Planning Commission held a
public hearing to consider this First Amendment on , 2009 and reported and
recommended to the City Council its findings on the matters stated in Section 19.12.080(B) of
the City's Municipal Code.
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K. After a duly noticed public hearing, the City Council approved this First
Amendment pursuant to Ordinance No. , adopted on 2010.
L. This First Amendment is consistent with the City's General Plan, Specific
Plan, and associated amendments, and other applicable ordinances, plans and policies of the
City. This First Amendment is also consistent with the purpose and intent of the provisions of
Section 65864 et seq. of the California Government Code, and Chapter 19.12 of the City of Lake
Forest Municipal Code. References herein to the "Development Agreement" shall mean the
Original Development Agreement as modified by this First Amendment.
ARTICLE I
DEFINITIONS
Section 1.1. Definitions Unless otherwise defined below, capitalized terms used in
this First Amendment shall have the meaning ascribed to them in the Development Agreement.
The following capitalized terms used in this First Amendment shall have the meanings set forth
below:
"Acquisition Agreement" is defined in Recital D.
"Actual Cost" shall have the meaning ascribed to it in the Acquisition
Agreement.
"Bonds" means bonds authorized to be issued by CFD No. 2003 -2.
"Canyon Hills Habitat Area" means the natural open space areas within the
Specific Plan to be dedicated to the City.
"CFD No. 2003 -2" means City of Lake Elsinore Community Facilities District
CFD No. 2003 -2 (Canyon Hills).
"Change Order" means a written order directing an addition, deletion, or
revision in the approved Park Improvement Plans.
"City" means the City of Lake Elsinore.
"Community Park" means a community park designated within Planning
Area 18 of the Specific Plan.
"Community Park Improvements" means the improvements within the
Community Park Site consistent with the Design and Park Improvement Plans.
"Community Park Maintenance Advance" means an advance by Developer to
City for City's actual costs of maintaining each Phase of the Community Park for a period of
time following its completion.
"Community Park Site" is depicted in Exhibit "C."
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"Design" means the conceptual design and major elements of the Community
Park or PA 27A Park, as applicable, depicted and described in Exhibits C -1 and C -2,
respectively.
"Developer" means Pardee Homes, a California corporation, and its successors
and assigns.
"Development Agreement" is defined in Recital L above.
"Effective Date" means the date upon which this First Amendment is approved
by the City Council of the City
"Improvement Area" means an improvement area designated as such within
CFD No. 2003 -2.
"Maintenance CFD" is defined in Section 3.1 below.
"Maintenance CFD Costs" means the City's actual costs of services and
maintenance CFD administrative expenses legally authorized to be paid with the special taxes of
the Maintenance CFD.
"Maintenance CFD Fund" means a segregated, interest - bearing fund established
and maintained by the City, which shall consist of an Advance Account and a Special Tax
Account from which disbursements shall be made for the City's actual costs of maintaining the
Community Park, the PA 27A Park and the Project Habitat Area and to reimburse prior
Community Park Maintenance Advances as set forth in Section 3.3 below.
"PA 27A Park" means the approximately 2.5 acre neighborhood park to be
constructed within Planning Area 27A.
"Park Improvement Plans" means plans and specifications for the Community
Park or PA 27A Park, as applicable, which will be submitted to and approved by the City,
subject to the preparation of related engineering plans and plan check approval by the
Department of Community Development, Division of Building and Safety, as modified from
time to time by Change Orders.
"PA 27A Park Improvements" means the improvements to the PA 27A Park
site consistent with the Design and Park Improvement Plans.
"Phase" means each of two (2) construction phases of the Community Park, as
described in Exhibit "C."
"Public Facilities Agreement" is defined in Recital E.
"Schedule of Performance" is set forth in Exhibit "D."
"Scope of Work" means the improvements, amenities, specifications and phasing
as set forth in Exhibit `B" with respect to the Community Park or PA 27A Park, as applicable.
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"Special Taxes" means Maintenance CID special taxes.
AGREEMENT
NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the Parties hereto agree as follows:
ARTICLE H
PARK CONSTRUCTION AND ACQUISITION
Section 2.1. Design and Park Improvement Plans In consultation with the City,
Developer shall prepare conceptual park designs of the Community Park and PA 27A Park that
conform to and not exceed the Scope of Work (the "Design") within the time set forth in the
Schedule of Performance. Upon approval of the Design by the City, Developer shall cause the
Park Improvement Plans to be prepared and submitted to the City within the time set forth in the
Schedule of Performance. City shall use commercially reasonable efforts to expeditiously
process all approvals relating to the Park Improvement Plans and the Park Improvement Plans
shall conform to and not exceed the Scope of Work.
Section 2.2. Construction of Community Park Developer shall solicit bids and
contract for construction of each Phase in accordance with the requirements of Exhibit "F"
hereto and within the time set forth in the Schedule of Performance. Upon Developer's receipt
of the bids for each Phase of the Community Park, Developer shall provide written notice to City
of the bid and bidder selected by Developer.
Section 2.3.
Park. Construction of each Phase shall be commenced and completed within the time set forth
in the Schedule of Performance. As provided in the Schedule of Performance if building permits
for 500 or more dwelling units within the Maintenance CID have been issued at the time
Developer is required to commence construction of the first Phase of the Community Park, City
may elect by written notice to Developer to require Developer to construct both Phases at the
same time.
Section 2.4. Construction of PA 27A Park Developer shall solicit bids and contract
for construction of the PA 27A Park in accordance with the requirements of Exhibit "F" hereto
and within the time set forth in the Schedule of Performance. Upon Developer's receipt of the
bids for the PA 27A Park, Developer shall provide written notice to City of the bid and bidder
selected by Developer.
Section 2.5. Commencement and Completion of PA 27A Park Construction of the
PA 27A Park shall be commenced and completed within the time set forth in the Schedule of
Performance.
Section 2.6. Change Orders Developer shall provide written notice to the City of any
proposed Change Orders and shall not approve any Change Order without City's written consent.
Developer shall not be required to approve any Change Order which would increase the Actual
Costs of the Community Park.
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F-.
Section 2.7. CFD No. 2003 -2 . Nothing herein is intended to modify, amend or
otherwise limit Developer's right to reimbursement under the Acquisition Agreement.
Section 2.8. Acceptance of Parks: Conveyance City agrees to promptly accept
ownership of each Phase of the Community Park upon completion of the Community Park
Improvements for the Phase in accordance with the Park Improvement Plans. City agrees to
promptly accept ownership of the PA 27A Park upon completion of the PA 27A Park
Improvements in accordance with the Park improvement Plans. The Community Park and
PA 27A Park shall be conveyed by way of a grant deed conveying good and marketable lien -free
title, excepting typical title exceptions related to utility easements and similar exception that will
not materially interfere with the use and enjoyment of the Community Park and PA 27A Park by
the public. No public use of a Phase of the Community Park shall be permitted until the City
accepts ownership of such Phase. No public use of the PA 27A Park shall be permitted until
City accepts ownership of the PA 27A Park.
ARTICLE III
PARK MAINTENANCE
Section 3.1. Formation of Maintenance CFD Developer agrees to include its
undeveloped and unsold property within Specific Plan Planning Areas IA, 113, 2B, 2C, 2D, 25,
28A, 28B, 28C, 31, 32, 36 and 37 and portions of Planning Areas 23, 29, 30A and 30B within a
community facilities district established by the City pursuant to the Mello -Roos Community
Facilities Act of 1982 as amended (the "Maintenance CFD ") for the purpose of levying special
taxes (the "Special Taxes ") for the maintenance of the Community Park, PA 27A Park and the
Canyon Hills Habitat Area and to maintain public street lighting within the Maintenance CFD.
The Rate and Method of Apportionment of Special Tax for the Maintenance CFD shall be as set
forth in Exhibit `B" attached hereto. Developer shall have no right to seek reimbursement of any
Actual Cost or any other cost incurred by Developer from the Maintenance CFD other than
reimbursement of Community Park Maintenance Advances pursuant to Section 3.3 below.
Section 3.2. Maintenance Fund Upon establishment of the Maintenance CFD, City
shall establish the Maintenance Fund consisting of an Advance Account and a Special Tax
Account. All Community Park Maintenance Advances made by Developer pursuant to
Section 3.3 below shall be deposited in the Advance Account. All Special Taxes received by the
City shall be deposited in the Special Tax Account. All investment earnings on funds in each
such Account shall be deposited in the Special Tax Account. The City shall pay all Maintenance
CFD Costs first from funds on deposit in the Special Tax Account. If and to the extent such
Maintenance CFD Costs cannot be fully funded from the Special Tax Account, City may fund
the amount of the shortfall from the Advance Account.
Section 3.3. Community Park Maintenance Advances Upon City's acceptance of
each Phase of the Community Park and conveyance of the corresponding portion of the
Community Park Site pursuant to Section 2.6 above, Developer shall make a Community Park
Maintenance Advance in an amount equal to the City's reasonably estimated costs to maintain
the Community Park for a period of two (2) years from the date of acceptance. On or before the
first July 30 two years following Developer's Community Park Maintenance Advance for the
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second Phase, City shall reimburse to Developer any remaining funds in the Advance Account
that is not required to pay Community Park maintenance costs in the current fiscal year;
provided, however, if the amount of Special Taxes authorized to be levied in the next fiscal year
is less than the amount of current, actual annual Maintenance CFD Costs, City shall not be
required to reimburse to Developer the current balance in the Advance Account. In that case,
City may continue to fund Community Park Maintenance Costs from the Advance Account as
provided above and shall only be required to reimburse Developer the remaining balance in the
Advance Account, if any, when the actual Special Taxes authorized to be levied in a fiscal year
equals or exceeds the actual annual Maintenance CFD Costs.
Section 3.4. Satisfaction of Park Conditions Developer's execution and
performance of the terms of this First Amendment shall fully satisfy any and all Development
Approvals for the Project or existing or future conditions of approval for Canyon Hills relating to
the provision or maintenance of parks.
ARTICLE IV
FURTHER AMENDMENTS
Section 4.1. Section 3.7 of the Development Agreement is hereby amended to read:
"`Development Approval(s)' means the Specific Plan, General Plan
Amendment, and Conditions of Approval, as in effect on the date of this Agreement or as
amended by mutual consent of City and Developer."
Section 4.2. Section 3.11 of the Development Agreement is hereby amended to read:
"`Project' means the development project, as set forth in the Specific
Plan."
Section 4.3. Section 3.13 of the Development Agreement is hereby amended to read:
"`Specific Plan' means the Cottonwood Hills Specific Plan (S.P. 88 -1), as
amended by mutual consent of City and Developer."
Section 4.4. Section 6.1 of the Development Agreement entitled Effective Date and
Term is hereby amended to read:
"The term of this Agreement shall be until July 1, 2030. Said term
may be extended by the circumstances set forth in Sections 11 and
15."
Section 4.5. Section 6.2 of the Development Agreement entitled Scheduling is hereby
amended to provide that City and Developer acknowledge the Project will be completed within
the term of this First Amendment.
Section 4.6. Section 8 of the Development Agreement entitled General Development of
the Project is hereby amended to add a new subsection 8.5, Map Extensions, as follows:
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"8.5 Man Extensions hi accordance with the provisions of
Section 66452.6 of the California Government Code, tentative
subdivision map(s) or tentative parcel map(s), heretofore or
hereafter approved in connection with development of the Project,
shall be granted an extension of time for the term of the
Development Agreement or as provided by the California
Subdivision Map Act, which ever period is longer."
Section 4.7. Section 18 of the Development Agreement entitled Addresses for Notice is
hereby amended to remove Pardee Construction Company and replace it with Pardee Homes,
10880 Wilshire Blvd., Suite 1900, Los Angeles, CA 90024, Attn: President & CEO, and remove
Sandler and Rosen and replace it with O'Neil LLP, 19900 MacArthur Blvd., Suite 1050, Irvine,
CA 92612, Attn: Administrative Partner.
ARTICLE V
ADDITIONAL PROVISIONS
Section 5.1. Counterparts. This First Amendment may be executed in counterparts,
each of which so executed shall be deemed an original, and such counterparts together shall
constitute but one First Amendment.
Section 5.2. No Other Changes. Except as modified by this First Amendment, the
terms and conditions of the Original Development Agreement, remain in full force and effect and
shall be incorporated as a part of and interpreted as one integrated agreement covering the
subjects included therein. If there are any conflicts between the provisions of this First
Amendment and the Original Development Agreement, the provisions of this First Amendment
shall control.
Section 5.3. Books and Records The City Manager of the City shall have the right,
during normal business hours and upon the giving of two (2) business days prior written notice to
the Developer to review all books and records of the Developer pertaining to the Actual Costs
incurred by Developer for the Community Park and PA 27A Park. Developer shall have the
right, during normal business hours and upon the giving of two (2) business days prior written
notice to the City, to review all books and records of the City pertaining to the Maintenance
CFD.
Section 5.4. Recordation by City Clerk Pursuant to Government Code
Section 65868.5, within ten (10) days of execution of this First Amendment by the Parties, the
City Clerk shall record a copy with the Riverside County Recorder. Thereafter, pursuant to
Government Code Section 65868.5, the burdens of the First Amendment shall be binding upon,
and the benefits of the agreement shall inure to, all successors in interest to the Parties to the
First Amendment.
AGENDA IT"I N0. '3
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H &O: #77259 v5 8 PAGE -Y-
5
IN WITNESS WHEREOF, the parties have executed this Agreement as of the respective
dates set forth below.
Dated: ' °CITY"
ATTEST:
Un
[NAME], City Clerk
APPROVED AS TO FORM:
LEIBOLD McCLENDON & MANN, P.C.
Un
[NAME], City Attorney
11/24/09 4000.2
H &O: #77259 v5
CITY OF LAKE ELSINORE, a California
municipal corporation
By:
[NAME], Mayor
"DEVELOPER"
PARDEE HOMES, a California Corporation
By:
Name:
Title:
By:
Name:
Title:
AGENDA ffw N®.
9 PACE - . - . (a QF
DRAFT
STATE OF CALIFORNIA )
ss
COUNTY OF RIVERSIDE )
On , before me, , a Notary Public,
personally appeared who proved to me on the basis of
satisfactory evidence to be the person(s) whose name(s) is /are subscribed to the within
instrument, and acknowledged to me that he /she /they executed the same in his/her /their
authorized capacity(ies), and that by his/her /their signature(s) on the instrument the person(s), or
the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the
foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Notary Public
STATE OF CALIFORNIA )
ss
COUNTY OF RIVERSIDE )
On , before me, , a Notary Public,
personally appeared who proved to me on the basis of
satisfactory evidence to be the person(s) whose name(s) is /are subscribed to the within
instrument, and acknowledged to me that he /she /they executed the same in his/her /their
authorized capacity(ies), and that by his/her /their signature(s) on the instrument the person(s), or
the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the
foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Notary Public
Acrnmm rmm no. 3
11/24/09 4000.2 P
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EXHIBIT A
LEGAL DESCRIPTION OF DEVELOPER PROPERTY
AGENDA ITEM mo- 3___,__,__
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DRAFT
EXHIBIT B
City of Lake Elsinore
Community Facilities District No. 2009 -1
(Park, Open Space and Street Lighting Maintenance)
Rate and Method of Apportionment of Special Tax
Introduction
Special Taxes shall be annually levied on each Developed Single Family Unit and
Developed Multifamily Unit (as hereinafter defined) in City of Lake Elsinore Community
Facilities District No. 2009 -1 (Park, Open Space and Street Lighting Maintenance) (the
"CFD No. 2009 -1 "), in accordance with the rate and method of apportionment of special taxes
hereinafter set forth. All of the property within CFD No. 2009 -1 that is not a Developed Single
Family Unit or Developed Multifamily Unit shall be exempt from the Special Taxes of
CFD No. 2009 -1.
Definitions
"Act" means the Mello -Roos Community Facilities Act of 1982, as amended, being
Chapter 2.5, Division 2 of Title 5 of the Government Code of the State of California.
"Administrative Expenses" means any reasonably necessary or appropriate expenses
incurred in the administration of CFD No. 2009 -1, including but not limited to the administrative
and legal costs of levying and collecting the Special Tax (including costs incurred in connection
with any appeals relating thereto and litigation expenses incurred in connection with the
collection of the Special Tax); and an allocable share of the salaries of the City staff providing
services on behalf of CFD No. 2009 -1 directly related to the foregoing and a proportionate
amount of City general administrative overhead related thereto.
"Assessor's Parcel" means a parcel of land in CFD No. 2009 -1 designated and assigned
a discrete identifying number on a map of the County Assessor of the County of Riverside.
"Canyon Hills Community Park" means the community park constructed within
Planning Area 18 of the Canyon Hills Specific Plan area.
"Canyon Hills Habitat Area" means the public open space and wildlife habitat within
the Canyon Hills Specific Plan Area.
"CFD No. 2009 -1" means Community Facilities District No. 2009 -1 established by the
City under the Act.
"City" means the City of Lake Elsinore, California.
"Council" means the City Council of the City of Lake Elsinore, acting as the legislative
body of CFD No. 2009 -1.
11 /24/09 4000.2
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H AGENDA REM No. 3
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PACE - OF
DRAFT
"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 March 1 preceding the Fiscal Year in which the Special Tax 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 March 1 preceding the Fiscal Year in which the Special Tax is being
levied.
"Fiscal Year" means the period beginning on July 1 and ending on the following
June 30.
"Maximum Special Tax" means the maximum Special Tax that can be levied by
CFD No. 2009 -1 in any Fiscal Year on any Assessor's Parcel.
"PA 27A Park" means the neighborhood park constructed within Planning Area 27A of
the Canyon Hills Specific Plan Area.
"Special Tax" means any of the special taxes authorized to be levied within
CFD No. 2009 -1 pursuant to the Act to fund the Special Tax Requirement.
"Special Tax Requirement" means the amount determined in any Fiscal Year for
CFD No. 2009 -1 equal to (i) the budgeted costs directly related to the maintenance of the
Canyon Hills Community Park, the PA 27A Park, the Canyon Hills Habitat Area and the Street
Lighting, including repair and replacement of components of the Canyon Hills Community Park,
the PA 27A Park, the Canyon Hills Habitat Area and the Street Lighting, which have been
accepted and maintained or are reasonably expected to be accepted and maintained during the
current Fiscal Year, (ii) Administrative Expenses, and (iii) anticipated delinquent Special Taxes
based on the delinquency rate in CFD No. 2009 -1 for the previous Fiscal Year, [less (iv) the
amount of Special Taxes previously collected that are available for such purposes, as determined
by the CFD Administrator].
"Street Lighting" means the public street lights constructed within and directly adjacent
to Planning Areas IA, 113, 213, 2C, 2D, 28A, 2813, 28C, 31, 32, 36 and 37 and portions of 23, 29,
30A and 30B of the Canyon Hills Specific Plan area that are within the boundary of CFD
No. 2009 -1.
"Unit" means each separate residential dwelling unit, which comprises an independent
facility capable of conveyance or use separate from adjacent dwelling units.
Rate and Method of Apportionment of Special Tax
Commencing Fiscal Year 2010 -2011 and for each subsequent Fiscal Year, the City
Council shall levy [up to] the Maximum Special Tax on all Assessor's Parcels defined as a
Developed Single Family Unit or Developed Multifamily Unit [as required to fully fund the
Special Tax Requirement].
11/24/09 4000.2
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PAGE -,:?-
DRAFT
The Maximum Special Tax for Fiscal Year 2010 -2011 shall be $ per Developed
Single Family Unit and $ per Developed Multifamily Unit.
On each July 1, commencing July 1, 2011, the Maximum Special Tax shall be increased
by two percent (2.00 %) of the amount in effect in the prior Fiscal Year.
Duration of the Special Tax
The Special Tax shall be levied in perpetuity to fund the Special Tax Requirement, unless
no longer required as determined at the sole discretion of the City Council.
Collection of the Special Tax
The Special Tax shall be collected in the same manner and at the same time as ordinary
ad valorem property taxes, provided, however, that CFD No. 2009 -1 may collect the Special Tax
at a different time or in a different manner if necessary to meet its funding requirements.
11/24/09 4000.2
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DRAFT
EXHIBIT C -1
COMMUNITY PARK SITE AND CONCEPTUAL PLAN
(INCLUDING PHASES)
[TO BE INSERTED]
11/24/09 4000.2
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PAGE OF.
Tw POTENTIAL LINK TO EXIST NG
RAILS IN wTTTXRP.G CRFEK
_— ,INTERPRETIVE SIGNAGE ALONG CREEK
fl Wll➢LIFE CORRIDOR NOUE OF REDWOODS
GATEWAY TO NATURE TRAIL
NRE iR IL d'iXK
AO PAVING
STAGING IWARTUP AREA
III NO I / LEAGUE
CFB DRE NL A PLAY
EA_ GES
FLAG POLE
SHADE STRUCTURES
FOUNTAIN? WATER PLAY
MINE 0
I2I GROUP SHADE STRUCTURES
RESTROOMSI STORAGE BUILDING? SNACK BAR
PLAZATREES WI STEEL TREE GRATESAT
FINISHSURFACELEVEL 51EELGRATESTO
ACCOMMODATE 131 LINE VOLTAGE UPLIGHTS EA
1IYWCCERFIELDG: 19VYL T
Ii.,AP 11E 1, ClN- A,OUYall
SPORTSPINA: WATERPU RESTROOMS,
SEATING. SHADE. EATING.
ALL AGEG.<B BENCHES,
13 PICNIC TABLES, MINIMUM.
LI
HILORENS PLAY
AREA: HLAGEG
DRYSTREAMBED
LOW WATER CONSUMING LANDSCAPE -TYP.
EMPLOY PL THAT REQUIRE LESS WATER.
WALKS, BENCHES, 5HATE TREES.
I MILE WALKING TRAIL " WOE
CONCRETE OR DG -TY,
P1 \
a
PARK SIGNAGE I MONUM ENT: PER Cl GTPNDMOS
P LIMITS: IYUACREG
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FENNELL &ASSO IAI
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NOTP PART: : SEE APPROVED T
- AMPHITHEaiE R I AWARDS AREA
RESTROOMS
.Cr / SHADE STRUCTURES
DRAFT
EXHIBIT C -2
PA 27A PARK CONCEPTUAL PLAN
[TO BE INSERTED]
11 &O: # 77 259 v s C 2 AGENDA ffEM IUD. 3
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PAGE a of
EXHIBIT D
COMMUNITY PARK
SCHEDULE OF PERFORMANCE
1
2.
3
Desim Developer shall have first
submitted conceptual plans for the
Design of the Community Park for
consideration by the City.
City approval or disapproval of
Desiar City shall approve or
disapprove of the Design. In the
event of disapproval, City shall
provide a reasonable explanation of
the grounds for disapproval.
Resubmission of Design following
disapproval Developer shall
resubmit the Design to the City.
December 1, 2009
Within 30 days of submission by
Developer.
Within 30 days of notice of disapproval
and explanation of grounds for
disapproval.
0
5.
Q
City approval or disapproval of Park
Improvement Plans City shall
approve or disapprove of the Park
Improvement Plans.
Resubmission of Park Improvement
Plans. City shall approve or
disapprove of the Park Improvements
Plans. In the event of disapproval,
City shall provide a reasonable
explanation of the grounds for
disapproval.
Commencement of first Phase of
Construction Developer shall have
commenced construction of the first
Phase of the Community Park.
7. Completion of the first Phase of the
Community Park Improvements
Developer shall have completed the
first Phase of the Community Park
Improvements.
11/24/09 4000.2
x &o: #77259 v5 D -1
Within 30 days of submission by
Developer.
Within 30 days of submission by
Developer.
The earlier of (1) the issuance of a
building permit for the 80 dwelling
unit issued within the Maintenance
CFD, or (2) January 10, 2012; provided
however, Developer shall not be
required to commence construction of
the Community Park Improvements
under either (1) or (2) until at least 120
days has elapsed following the City's
approval of the Park Improvement
Plans.
Within 15 months of the commencement
of construction.
AGENDA ITEM NO.
PAGE_ _ tom 3;
DRAFT
8.
Commencement of second Phase of
The earlier of (1) the issuance of a
Construction Developer shall have
building permit for the 500` dwelling
commenced construction of the
unit within the Maintenance CFD or
second Phase of the Community
(2) within 24 months following the
Park.
completion of the first Phase of
construction.
9.
Completion of second Phase of
Within 12 months of the commencement
Construction Developer shall have
of construction.
completed the second Phase of the
Community Park.
PA 27A PARK
SCHEDULE OF PERFORMANCE
1.
Design Developer shall have first
Approval of first final subdivision map
submitted conceptual plans for the
for PA 28A Park.
Design of the PA 27A Park for
consideration by the City.
2.
City approval or disapproval of
Within 30 days of submission by
Design City shall approve or
Developer.
disapprove of the Design. In the
event of disapproval, City shall
provide a reasonable explanation of
the grounds for disapproval.
3.
Resubmission of Design following
Within 30 days of notice of disapproval
disapproval Developer shall
and explanation of grounds for
resubmit the Design to the City.
disapproval.
5.
City approval or disapproval of Park
Within 30 days of submission by
Improvement Plans City shall
Developer.
approve or disapprove of the Park
Improvement Plans.
6.
Resubmission of Park Improvement
Within 30 days of submission by
Plans. City shall approve or
Developer.
disapprove of the Park Improvements
Plans. In the event of disapproval,
City shall provide a reasonable
explanation of the grounds for
disapproval.
7.
Commencement of Construction
The issuance of a building permit for the
Developer shall have commenced
first production dwelling unit within
construction of the first Phase of the
PA 28A Park, the immediately adjacent
PA 27A Park.
Planning Area.
11/24/09 4000.2 AGENDA ITEM NO. _L______
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DRAFT
EXHIBIT E
COMMUNITY PARK
SCOPE OF WORT&
Phase I Major Park Elements
1. (2) Soccer fields (190'x 270')
(a) (4) portable goal stands
2. (1) Restroom/storage facility with snack bar for sports leagues
3. (1) Basketball court
4. (1) Preschool and Elementary age playground with shade canopy
(a) rubberized resilient surface
5. Parking lot(s) with at least 120 spaces
6. (4) Interpretive signs along creek and wildlife corridor
(a) sign standard substantially similar to City Downtown Riverwalk Project
7. Walking path to wildlife corridor and Cottonwood Creek
(a) AC paving (3" thick), if permitted by regulatory permits, or 3" compacted DG
8. Park monument entry signage per City Identify Standards Guide
9. Water spray play area (minimum 7500 square feet)
(a) substantially similar to water spray features at Sigler Park, City of Westminster,
CA
10. Dog play area
11. (2) Group shade structures (substantially similar to Model Poligon #SQR30 by Porter
Corp., Holland, MI)
12. (10) Single shade structures (substantially similar to Model Poligon #SQR16 by Porter
Corp. Holland, MI)
The major park elements, specification levels and materials shall be substantially similar to the Rosetta
Canyon Park standards, specification levels and materials, unless otherwise specified herein.
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PAGE a9 0F 3.)--_
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13. Top soil
(a)
Import 12" deep Class A material for all fields with turf
14. Amenities (substantially similar to Quick Crete Products Corp. products)
(a)
(40) Benches
(b)
(22) Picnic tables
(c)
(12) BBQs
(d)
(25) Waste containers
(e)
(4) Hot ash containers
Phase II Maior Park Elements
15. (2) Little League fields /softball fields (250')
(a) (4) Bleachers
(b) Chain -link fenced back -stops
16. (1) Restroom facility
17. Parking lot(s) with at least 55 spaces
18. (1) Amphitheater
PA 27A PARK
SCOPE OF WORK
PA 27A Maior Park Elements
1. (1) Little League /softball field (180')
2. (1) Soccer field (190'x 270')
3. (1) Restroom facility
4. (1) Basketball court
2' The specification levels and materials shall be substantially similar to the Canyon Hills PA _
neighborhood park, unless otherwise specified herein.
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PAf15 30 OF: 3;)-
DRAFT
5. (1) Preschool and Elementary age playground with shade canopy (substantially similar to
Model Poligon #SQR30 by Porter Corp., Holland, MI)
(a) rubberized resilient surface
6. (4) Single shade structures (substantially similar to Model Poligon #SQR16 by Porter
Corp. Holland, MI)
7. Parking lot(s) with at least 51 spaces
8. Top soil
(a) Import 12" deep Class A material for all fields with turf
9. Amenities (substantially similar to Quick Crete Products Corp. products)
(a) Benches
(b) (4) Picnic tables
(c) (4) BBQs
(d) (__) Waste containers
(e) (1) Hot ash container
11/24/09 4000.2 AGENDA 1rej No.
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PACE 31 -
I
DRAFT
EXHIBIT F
BIDDING AND CONTRACTING REQUIREMENTS
1. Bids shall be solicited from at least three (3) qualified contractors, provided at
least three (3) qualified contractors are reasonably available. Developer may directly solicit bids.
2. The bidding response time shall be not less than ten (10) working days.
3. An authorized representative of the City shall be provided a copy of the tabulation
of bid results.
4. Contractor(s) for the construction of the Community Park and PA 27A Park shall
be awarded to the qualified contractor(s) submitting the lowest responsible bid(s), as determined
by the Developer.
5. The contractor to whom a contract is awarded shall be required to pay not less
than the prevailing rates of wages pursuant to Labor Code Sections 1770, 1773 and 1773.1.
A current copy of applicable wage rates shall be on file in the Office of the City Engineer, as
required by Labor Code Section 1773.2.
11/24/09 4000.2 ACWIDA rmm Pt0. 3_
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