Loading...
HomeMy WebLinkAboutOrd. No. 2007-1207-1238 ORDINANCE NO. 1207 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, APPROVING SPECIFIC PLAN NO. 2006-01 WHEREAS, Vicki Mata, Trumark Companies, has filed an application with the City of Lake Elsinore requesting approval of Specific Plan No. 2006-01 for the project identified as the Canyon Hills Estates Specific Plan (the "Project"). The 246.4-acre project site is located immediately adjacent to the existing southern boundary of the Canyon Hills Specific Plan and is bounded by Hemlock Street to the north, Pine Avenue to the east, and Crooked Arrow Drive and Crab Hollow Circle to the south and west (the "Project Site"). Cottonwood Creek flows through the northeast comer of the site adjacent to Cottonwood Canyon Road; and WHEREAS, on January 16,2007, the Planning Commission of the City of Lake Elsinore considered the proposed Specific Plan and recommended that the City Council of the City of Lake Elsinore approve the Specific Plan; and WHEREAS, the City Council of the City of Lake Elsinore has been delegated with the responsibility of making decisions for approval of specific plans; and WHEREAS, public notice of the Project has been given, and the City Council has considered evidence presented by the Community Development Department and other interested parties, and the ErR, including that provided at a public hearing held with respect to this item on January 23,2007. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE DOES ORDAIN AS FOLLOWS: SECTION 1. Prior to making a decision, the City Council has reviewed and analyzed Specific Plan No. 2006-01 pursuant to the Planning and Zoning Laws (Cal. Gov. Code 99 65000 et seq.) and Chapter 17.99 of the Lake Elsinore Municipal Code ("LEMC"). SECTION 2. That in accordance with State Planning and Zoning Laws and the Lake Elsinore Municipal Code, the City Council makes the following findings for the approval of Specific Plan No. 2006-01: - CITY COUNCIL ORDINANCE NO. 1207 PAGE20F6 1. The location and design of the proposed development shall be consistent with the goals and policies of the City's General Plan and with any other applicable plan or policies adopted by the City. The Canyon Hills Estates Specific Plan meets the City's specific plan criteria for content and required implementation of the General Plan established by Section 65450 et seq. of the California Government Code and Section 17.99 of the City of Lake Elsinore Municipal Code. The Canyon Hills Estates Specific Plan has been prepared to provide the essential link between the City's General Plan policies and actual development within the Project Site. The Specific Plan provides for the orderly and efficient development of the Project Site in accordance with the City's General Plan programs, goals, policies, and implementation measures. The Specific Plan functions as a regulatory document and implements the City's General Plan through land use provisions, development regulations, and design guidelines. Accordingly, the proposed Specific Plan is in concurrence with the objectives of the General Plan and the purpose of the planning district in which the site is located. 2. The proposed location shall allow the development to be well- integrated with or adequately buffered from its surroundings, whichever may be the case. The Canyon Hills Estates Specific Plan conforms to the topography of the Project Site and appears as an extension of the existing Canyon Hills development immediately to the north. The Project Site slopes downward from south to north and faces the Canyon Hills development; the northern portion of the Project Site lies at the same elevation as the Canyon Hills development and the existing infrastructure improvements (road, water, sewer and dry utilities) and community services (retail and service commercial, parks and schools) abut the Project Site to the north. The Specific Plan includes a 5.4 acre park in the northeast corner of the Project Site as a natural and aesthetically pleasing gateway feature for the Project Site. The Specific Plan includes 149.9 acres of open space to provide a natural appearing visual backdrop to the lower residential development area and the community of Canyon Hills. The proposed project is appropriate to the site and surrounding developments in that the project will construct single-family detached units in accordance with appropriate development and design standards contained in the Canyon Hills Estates Specific Plan. The project creates interest and varying vistas as a person moves along any project street. The project also complements CITY COUNCIL ORDINANCE NO. 1207 PAGE 3 OF 6 the quality of existing neighboring development and will continue to provide visually-pleasing design and architecture within the immediate area. 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. The proposed Canyon Hills Estates Specific Plan has been reviewed as to its relation to the width and type of pavement needed to carry the type and quantity of traffic generated. The circulation concept in the Specific Plan consists of an internal street system supporting the land use allocations in the Specific Plan with connections to surrounding vehicular access streets and pedestrian linkages. The City has adequately evaluated the potential impacts associated with the proposed uses prior to its approval and has conditioned the project to be served by roads of adequate capacity and design standards to provide reasonable access by car, truck, transit, and bicycle (Conditions of Approval 54-58). The layout and design standards for streets in the Specific Plan allow the community to safely meet the circulation needs of the residents and users of the Project Site. 4. The Final Specific Plan shall identify a methodology(s) to allow land uses to be adequately serviced by existing or proposed public facilities and services. In appropriate circumstances, and as provided elsewhere by City Code, the City may require that suitable areas be reserved for schools, parks and pedestrian ways; or public open spaces shall be dedicated or reserved by private covenant for the common use of residents, establishments or operations in the development. The Final Specific Plan properly identifies methodologies to allow land uses to be adequately serviced by existing or proposed public facilities and services. The Final Specific Plan identifies necessary streets and circulation to support the proposed land use allocations. The Project is designed as an extension of the adjacent Canyon Hills community to the north. Water, sewer, electricity, natural gas, schools and other public facilities and services will be available from the City through the existing community of Canyon Hills north of the Project Site. In addition, the Specific Plan identifies a 5.4 acre park site for common use of the residents, approximately 126 acres of open space for dedication and preservation, and an additional 23.9 acres of open space. CITY COUNCIL ORDINANCE NO. 1207 PAGE40F6 5. The overall design of the Specific Plan will produce an attractive, efficient and stable development. The proposed Canyon Hills Estates Specific Plan has been designed in consideration of the size and shape of the property, thereby strengthening and enhancing the immediate residential area. 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 proposed use has been reviewed to ensure adequate provision of screening from the public rights-ofway or adjacent properties. The Canyon Hills Estates Specific Plan conforms to the topography of the Project Site and appears as an extension of the existing Canyon Hills development immediately to the north, thereby facilitating the efficient provision of public services and facilities. The Specific Plan provides for the orderly and efficient development of the Project Site in accordance with the City's General Plan through land use provisions, development regulations, and design guidelines. The design guidelines in the Specific Plan establish the framework to achieve harmony and compatibility within residential neighborhoods, while promoting high quality architectural design. The Canyon Hills Estates Specific Plan will not be detrimental to the health, safety, comfort or general welfare of the persons residing or working near the project area or within the City, nor will it be injurious to property or improvements in the project area or within the City. In addition, staff has substantiated that all applicable City Departments and Agencies have been afforded the opportunity for a thorough review of the Specific Plan and have incorporated all applicable comments and/or conditions related to installation and maintenance of landscaping, street dedications, regulations of points of vehicular ingress and egress and control of potential nuisances, so as to eliminate any negative impacts to the general health, safety, comfort, or general welfare of the surrounding neighborhood or the City. 6. In accordance with the requirements of the California Environmental Quality Act (CEQA), impacts have been reduced to a level of non-significance, or in the case where impacts remain, a statement of overriding considerations must be adopted to justify the merits of project implementation. Environmental Impact Report No. 2006-02 ("EIR '') is adequate and prepared in accordance with the requirements of the California Environmental Quality Act CITY COUNCIL ORDINANCE NO. 1207 PAGE50F6 (CEQA) which analyzes environmental effects of the Specific Plan. The EIR states that most of the potentially significant environmental impacts have been reduced to a level of less than significant through implementation of project design features, standard conditions, and project-specific mitigation measures. Significant short- term air quality impacts and cumulative transportation impacts have been identified as unavoidable and significant, and a statement of overriding considerations has been prepared relative to those impacts. SECTION 3. Based upon the above findings, the Staff Report, conditions of approval and documentary and oral testimony presented, the City Council hereby approves Specific Plan No. 2006-01. SECTION 4. If any provision, clause, sentence or paragraph of this Ordinance or the application thereof to any person or circumstance shall be held invalid, such invalidity shall not affect the other provisions of this Ordinance and are hereby declared to be severable. SECTION 5. This Ordinance shall take effect thirty (30) days after the date of its final passage. The City Clerk shall certify as to adoption of this Ordinance and cause this Ordinance to be published and posted in the manner required by law. INTRODUCED AND APPROVED UPON FIRST READING this 23rd day of January 2007, upon the following roll call vote: AYES: COUNCILMEMBERS: BUCKLEY, HICKMAN, KELLEY, SCHIFFNER, MAGEE COUNCILMEMBERS: NONE NOES: ABSENT: COUNCILMEMBERS: NONE ABSTAIN: COUNCILMEMBERS: NONE CITY COUNCIL ORDINANCE NO. 1207 PAGE 6 OF 6 PASSED, APPROVED AND ADOPTED UPON SECOND READING this 13th day of February, 2007, upon the following roll call vote: NOES: COUNCILMEMBERS: BUCKLEY, KELLEY, SCHIFFNER, MAGEE COUNCILMEMBERS: NONE AYES: ABSTAIN: COUNCILMEMBERS: NONE Robert Magee, May City of Lake E1sino e ABSENT: COUNCILMEMBERS: ORDINANCE NO. 1208 ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE AUTHORIZING THE LEVY OF A SERVICES SPECIAL TAX AND A SPECIAL TAX WHEREAS, on December 12,2006, the City Council (the "Council") of the City of Lake Elsinore (the "City") adopted Resolution No. 2006-205 stating its intention to form the City of Lake Elsinore Community Facilities District No. 2006-9 (Trieste) (the "CFD") pursuant to the Mello-Roos Community Facilities Act of 1982, as amended (the "Act"), to finance a portion of the cost of providing parks, open space and storm drain maintenance services (the "Services") that are in addition to those provided in the territory within the CFD prior to the formation of the CFD, and to finance the purchase, construction, expansion or rehabilitation of certain real and other tangible property with an estimated useful life of five years or longer, including public infrastructure facilities and other governmental facilities, which the City is authorized by law to construct, own or operate (the "Facilities"); and - WHEREAS, on December 12, 2006, the Council also adopted Resolution No. 2006-206 stating its intention and the necessity to incur bonded indebtedness in the amount not to exceed $5,000,000 to be issued for the purpose of financing the purchase, construction, expansion or rehabilitation of the Facilities; and WHEREAS, notice was published as required by law relative to the intention of the Council to form the CFD and to incur bonded indebtedness in the amount not to exceed $5,000,000 within the boundaries of the CFD; and WHEREAS, on January 23, 2007, this Council held a noticed public hearing as required by law relative to the determination to proceed with the formation of the CFD, the rate and method of apportionment and manner of collection of the special tax to be levied within the CFD to pay for the Services and the rate and method of apportionment and manner of collection of the special tax to be levied within the CFD to pay the principal and interest on the proposed bonded indebtedness of the CFD, and relative to the necessity for authorizing the bonds, the purpose for which the bonds are to be issued, the amount of the proposed debt, the maximum term of the bonds and the maximum annual rate of interest to be paid; and CITY COUNCIL ORDINANCE NO. 1208 PAGE20F4 WHEREAS, at said hearing all persons desiring to be heard on all matters pertaining to the formation of the CFD and the incurring of bonded indebtedness by the CFD were heard and a full and fair hearing was held; and WHEREAS, the Council subsequent to said hearing adopted Resolution No. 2007-12 determining the validity of prior proceedings and established the CFD; and WHEREAS, the Council subsequent to said hearing adopted Resolution No. 2007-13 which called an election within the CFD for January 23, 2007 on the proposition of incurring bonded indebtedness, levying a special tax and setting an appropriations limit; and WHEREAS, on January 23,2007, an election was held within the CFD in which the eligible electors approved by more than two-thirds vote the proposition of incurring bonded indebtedness, levying a special tax, and setting an appropriations limit. THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE DOES ORDAIN AS FOLLOWS: SECTION 1. A special tax (the "Services Special Tax") is levied within the boundaries of the CFD pursuant to the formula set forth in Exhibit "A" attached hereto and incorporated by reference in an amount necessary to pay all of the costs of providing the Services, periodic costs, and costs of the tax levy and collection, and all other costs. SECTION 2. A special tax (the "Special Tax") is levied within the boundaries of the CFD pursuant to the formulas set forth in Exhibit "A" attached hereto and incorporated by reference in an amount necessary to pay all of the costs of providing the Facilities, periodic costs, and costs of the tax levy and collection, and all other costs including amounts payable with respect to the bonded indebtedness. SECTION 3. This legislative body is hereby further authorized each year, by resolution adopted as provided in section 53340 of the Act, to determine the specific special tax rate and amount to be levied for the then current or future tax years, except that the special tax rate to be levied shall not exceed the maximum rate set forth in Exhibit "A". CITY COUNCIL ORDINANCE NO. 1208 PAGE30F4 SECTION 4. All of the collections of the Services Special Tax and Special Tax shall be used as provided for in the Act and Resolution No. 2007-12 (Resolution of Formation). SECTION 5. The above authorized Services Special Tax and the Special Tax shall be collected in the same manner as ordinary ad valorem taxes are collected and shall be subject to the same penalties and the same procedure and sale in cases of delinquency as provided for in ad valorem taxes; provided, however, the CFD may collect the Services Special Tax and the Special Tax at a different time or in a different manner if necessary to meet its financial obligations. SECTION 6. If any provision, clause, sentence or paragraph of this Ordinance or the application thereof to any person or circumstance shall be held invalid, such invalidity shall not affect the other provisions of this Ordinance and are hereby declared to be severable. SECTION 7. The Mayor shall sign this ordinance and the City Clerk shall attest to such signature. The City Clerk is directed to cause the title and summary or text of the this ordinance, together with the vote thereon, to be published within fifteen (15) days after its passage at least once in a newspaper of general circulation published and circulated within the territorial jurisdiction of the City, and to post at the main office of the City a certified copy of the full text of the adopted ordinance along with the names of the council Members voting for and against the ordinance. SECTION 8. This Ordinance relating to the levy of the Services Special Tax and the Special Tax shall take effect thirty (30) days after the date of its final passage. 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. A copy of this Ordinance shall be transmitted to the Clerk of the Board of Supervisors of Riverside County, The Assessor and the Treasurer-Tax Collector of Riverside County. CITY COUNCIL ORDINANCE NO. 1208 PAGE40F4 - INTRODUCED AND APPROVED UPON FIRST READING this 23rd day of January, 2007, upon the following roll call vote: AYES: COUNCILMEMBERS: BUCKLEY, HICKMAN, KELLEY, SCHIFFNER, MAGEE NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: NONE ABSTAIN: COUNCILMEMBERS: NONE PASSED, APPROVED AND ADOPTED UPON SECOND READING this 13th day of February, 2007, upon the following roll call vote: AYES: COUNCILMEMBERS: BUCKLEY, KELLEY, SCHIFFNER, MAGEE NOES: COUNCILMEMBERS: NONE ABSTAIN: COUNCILMEMBERS: Robert E. Magee, ayor City of Lake Els' ore ABSENT: COUNCILMEMBERS: A T!fST: ~ /\iJd~C1o ~ tit Frederick Ray, CMC, City erk City of Lake Elsinore RATE AND METHOD OF APPORTIONMENT FOR COMMUNITY FACILITIES DISTRICT No. 2006-9 OF THE CITY OF LAKE ELSINORE (TRIESTE) A Special Tax shall be levied on all Assessor's Parcels in Community Facilities District No. 2006-9 of the City of Lake Elsinore (Trieste) ("CFD No. 2006-9") and collected each Fiscal Year commencing in Fiscal Year 2007-2008, in an amount determined through the application of this Rate and Method of Apportionment as described below. All of the real property in CFD No. 2006-9, unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent and in the manner herein provided. A. DEFINITIONS The terms hereinafter set forth have the following meanings: "Acre" or "Acreage" means the land area of an Assessor's Parcel as shown on or determined from the applicable Assessor's Parcel Map. Notwithstanding the foregoing, the Acreage attributable to a Condominium shall. be computed by the CFD Administrator by dividing the total Acreage for the Final Subdivision in which the Condominium is located, less the Acreage for any Property Owner Association Property and/or Public Property, by the total number of Condominiums to be constructed within such Final Subdivision as determined from the applicable Condominium Plan. "Act" means the Mello-Roos Community Facilities Act of 1982, being Chapter 2.5, Part 1, Division 2 of Title 5 of the California Government Code. "Administrative Expenses" means the following actual or reasonably estimated costs directly related to the administration ofCFD No. 2006-9: the costs of computing the Special Taxes and preparing the annual Special Tax collection schedules (whether by the City or designee thereof or both); the costs of collecting the Special Taxes (whether by the City or otherwise); the costs of remitting the Special Taxes to the Trustee; the costs of the Trustee (including its legal counsel) in the discharge of the duties required of it under the Indenture; the costs to the City, CFD No. 2006-9 or any designee thereof of complying with arbitrage rebate requirements; the costs to the City, CFD No. 2006-9 or any designee thereof of complying with disclosure requirements of the City, CFD No. 2006-9 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. 2006-9 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. Administrative Expenses shall also include amounts estimated by the CFD Administrator or advanced by the City or CFD No. 2006-9 for any other administrative purposes ofCFD No. 2006-9, including attorney's fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes. City of Lake Elsinore Community Facilities District No. 2006-9 (Trieste) November 7, 2006 Page 1 "Assessor's Parcel" means a lot or parcel, including but not limited to Condominiums, to which an Assessor's parcel number is assigned as determined from an Assessor's Parcel Map or the applicable assessment roll. "Assessor's Parcel Map" means an official map of the County Assessor of the County designating parcels by Assessor's Parcel number. "Assigned Special Tax for Facilities" means the Special Tax for Facilities for each Land Use Class of Developed Property, as determined in accordance with Section C.l.(b) below. "Authorized Facilities" means those facilities eligible to be funded by CFD No. 2006-9. "Backup Special Tax for Facilities" means the Special Tax for Facilities applicable to each Assessor's Parcel of Developed Property, as determined in accordance with Section C.l.( c) below. "Certificate of Occupancy" means a certificate issued by the City that authorizes the actual occupancy of a dwelling unit for habitation by one or more residents. "CFD Administrator" means an official of the City, or designee thereof, responsible for determining the Special Tax Requirement for Facilities, the Special Tax Requirement for Services as determined in accordance with Section I below, and providing for the levy and collection of the Special Taxes. "CFD No. 2006-9" means Community Facilities District No. 2006-9 of the City of Lake Elsinore (Trieste). "CFD No. 2006-9 Bonds" means any bonds or other debt (as defined in Section 53317(d) of the Act), whether in one or more series, issued by CFD No. 2006-9 and secured solely by the Special Tax for Facilities levy on property within the boundaries ofCFD No. 2006-9 under the Act. "City" means the City of Lake Elsinore. "Condominium" means a unit meeting the statutory definition of a condominium contained in the California Civil Code, Section 1351, and for which a condominium plan has been recorded pursuant to California Civil Code, Section 1352. "Condominium Plan" means a condominium plan as set forth in the California Civil Code, Section 1352. "Council" means the City Council of the City of Lake Elsinore, acting as the legislative body ofCFD No. 2006-9. "County" means the County of Riverside. City of Lake Elsinore Community Facilities District No. 2006-9 (Trieste) November 7,2006 Page 2 "Developed Property" means, with respect to the Special Tax for Facilities, for each Fiscal Year, all Taxable Property, exclusive of Taxable Public Property and Taxable Property Owner Association Property, for which the Final Subdivision was recorded on or before January I of the prior Fiscal Year and a building permit for new construction was issued on or before May I ofthe Fiscal Year preceding the Fiscal Year for which the Special Tax for Facilities is being levied. "Final Subdivision" means a subdivision of property by recordation of (i) a final map, or portion thereof, approved by the City pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) that creates individual lots for which building permits may be issued, or (ii) lot line adjustment approved by the City. "Fiscal Year" means the period starting July I and ending on the following June 30. "Indenture" means the indenture, fiscal agent agreement, resolution or other instrument pursuant to which CFD No. 2006-9 Bonds are issued, as modified, amended and/or supplemented from time to time, and any instrument replacing or supplementing the same. "Land Use Class" means any of the classes listed in Table I below. "Maximum Special Tax for Facilities" means the maximum Special Tax for Facilities, determined in accordance with Section C below, that can be levied in any Fiscal Year on any Assessor's Parcel. "Non-Residential Property" means all Assessor's Parcels of Developed Property for which a building permit permitting the construction of one or more non-residential units or facilities has been issued by the City, and which is not otherwise Residential Property. "Outstanding Bonds" means all CFD No. 2006-9 Bonds which are deemed to be outstanding under the Indenture. "Property Owner Association Property" means, for each Fiscal Year, (i) any property within the boundaries of CFD No. 2006-9 that was owned by a property owner association, including any master or sub-association, as of January I of the prior Fiscal Year, (ii) any property located in a Final Subdivision that was recorded as of the May I preceding the Fiscal Year in which the Special Tax is being levied and which, as determined from such Final Subdivision, is or will be open space, a common area recreation facility, or a private street, or (Hi) any property which, as of the May I preceding the Fiscal Year for which the Special Tax is being levied, has been conveyed, irrevocably dedicated, or irrevocably offered to a property owner's association, including any master or sub-association, provided such conveyance, dedication, or offer is submitted to the CFD Administrator by May I preceding the Fiscal Year for which the Special Tax is being levied. Notwithstanding the preceding, Property Owner Association Property shall not include any property on which Condominiums are or will be located. City of Lake Elsinore Community Facilities District No. 2006-9 (Trieste) November 7, 2006 Page 3 "Proportionately" means for Developed Property that the ratio of the actual Special Tax for Facilities levy to the Assigned Special Tax for Facilities is equal for all Assessor's Parcels of Developed Property. For Undeveloped Property, "Proportionately" means that the ratio of the actual Special Tax for Facilities levy per Acre to the Maximum Special Tax for Facilities per Acre is equal for all Assessor's Parcels of Undeveloped Property. The term "Proportionately" may similarly be applied to other categories of Taxable Property as listed in Section D below. "Public Property" means property within the boundaries of CFD No. 2006-9 owned by, irrevocably offered or dedicated to, or over, through or under which an easement for purposes of public use has been granted, to the federal government, the State, the County, the City, or any local government or other public agency, provided that any property leased by a public agency to a private entity and subject to taxation under Section 53340.1 of the Act shall be taxed and classified according to its use. "Residential Floor Area" means all of the square footage of living area within the perimeter of a residential structure, not including any carport, walkway, garage, overhang, patio, enclosed patio, or similar area. The determination of Residential Floor Area for an Assessor's Parcel shall be made by reference to the building permit(s) issued for such Assessor's Parcel. Such determination shall be final following the issuance of a Certificate of Occupancy for the dwelling unit. "Residential Property" means all Assessor's Parcels of Developed Property for which a building permit permitting the construction thereon of one or more residential dwelling units has been issued by the City. "Special Tax" means any of the special taxes authorized to be levied by CFD No. 2006-9 pursuant to the Act. "Special Tax for Facilities" means the special tax to be levied in each Fiscal Year on each Assessor's Parcel of Developed Property, Taxable Property Owner Association Property, Taxable Public Property, and Undeveloped Property to fund the Special Tax Requirement for Facilities. "Special Tax Requirement for Facilities" means that amount required in any Fiscal Year for CFD No. 2006-9 to: (i) pay debt service on all Outstanding Bonds due in the calendar year commencing in such Fiscal Year; (ii) pay periodic costs on the CFD No. 2006-9 Bonds, including but not limited to, credit enhancement and rebate payments on the CFD No. 2006-9 Bonds due in the calendar year commencing in such Fiscal Year; (iii) pay a proportionate share of Administrative Expenses; (iv) pay any amounts required to establish or replenish any reserve funds for all Outstanding Bonds; (v) pay for reasonably anticipated Special Tax for Facilities delinquencies based on the delinquency rate for the Special Tax for Facilities levy in the previous Fiscal Year; (vi) pay directly for acquisition or construction of Authorized Facilities to the extent that the inclusion of such amount does not increase the Special Tax for Facilities levy on Undeveloped Property; less (vii) a credit for funds available to reduce City of Lake Elsinore Community Facilities District No. 2006-9 (Trieste) November 7, 2006 Page 4 the annual Special Tax for Facilities levy, as determined by the CFD Administrator pursuant to the Indenture. "State" means the State of California. "Taxable Property" means all of the Assessor's Parcels within the boundaries ofCFD No. 2006-9 which are not exempt from the Special Tax for Facilities pursuant to law or Section E below. "Taxable Property Owner Association Property" means all Assessor's Parcels of Property Owner Association Property that are not exempt pursuant to Section E below. "Taxable Public Property" means all Assessor's Parcels of Public Property that are not exempt pursuant to Section E below. "Trustee" means the trustee or fiscal agent under the Indenture. "Undeveloped Property" means, for each Fiscal Year, all Taxable Property not classified as Developed Property, Taxable Property Owner Association Property, or Taxable Public Property . B. ASSIGNMENT TO LAND USE CATEGORIES Each Fiscal Year, all Taxable Property within CFD No. 2006-9 shall be classified as Developed Property, Taxable Public Property, Taxable Property Owner Association Property, or Undeveloped Property, and shall be subject to the Special Tax for Facilities in accordance with this Rate and Method of Apportionment determined pursuant to Sections C and D below. Residential Property shall be assigned to Land Use Classes 1 through 3 as listed in Table 1 below based on the Residential Floor Area for each unit. Non-Residential Property shall be assigned to Land Use Class 4. C. MAXIMUM SPECIAL TAX FOR FACILITIES Prior to the issuance ofCFD No. 2006-9 Bonds, the Assigned Special Tax for Facilities on Developed Property (set forth in Table 1), and the Backup Special Tax for Facilities attributable to a Final Subdivision, may be reduced in accordance with, and subject to the conditions set forth in this paragraph. If it is reasonably determined by the CFD Administrator that the overlapping debt burden (as defined in the Statement of Goals and Policies for the Use of the Mello-Roos Community Facilities Act of 1982 adopted by the Council, the "Goals and Policies") calculated pursuant to the Goals and Policies based upon the Assigned Special Tax for Facilities on Developed Property exceeds the City's maximum level objective set forth in such document, the Assigned Special Tax for Facilities on Developed Property, and the Backup Special Tax for Facilities attributable to a Final Subdivision, may be reduced to the amount necessary to satisfy the City's objective with respect to the maximum overlapping debt burden level with the written consent of the CFD Administrator. The reductions permitted pursuant to this paragraph shall be reflected in an City of Lake Elsinore Community Facilities District No. 2006-9 (Trieste) November 7, 2006 Page 5 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". 1. Developed Property (a) Maximum Special Tax for Facilities The Maximum Special Tax for Facilities for each Assessor's Parcel classified as Developed Property shall be the greater of (i) the amount derived by application of the Assigned Special Tax for Facilities or (ii) the amount derived by application of the Backup Special Tax for Facilities. (b) Assigned Special Tax for Facilities The Assigned Special Tax for Facilities for each Land Use Class is shown below in Table 1. TABLE 1 Assigned Special Tax for Facilities for Developed Property Community Facilities District No. 2006-9 Residential Property More than 2,100 sq. ft. $3,085 per unit 2 Residential Property 1,800 - 2,100 sq. ft. $2,891 per unit 3 Residential Property Less than 1,800 sq. ft. $2,708 per unit 4 Non-Residential Property NA $30,518 per Acre (c) Backup Special Tax for Facilities The Backup Special Tax for Facilities attributable to a Final Subdivision will equal $31,966 multiplied by the Acreage of all Taxable Property, exclusive of any Taxable Property Owner Association Property and Taxable Public Property, therein. The Backup Special Tax for Facilities for each Assessor's Parcel of Residential Property shall be computed by dividing the Backup Special Tax for Facilities attributable to the applicable Final Subdivision by the number of Assessor's Parcels and/or residential units for which building permits for residential construction have or may be issued (i.e., the number or residential lots and/or units). The Backup Special Tax for Facilities for each Assessor's Parcel of Non-Residential Property therein shall equal $31,966 multiplied by the Acreage of such Assessor's Parcel. City of Lake Elsinore Community Facilities District No. 1006-9 (Trieste) November 7, 1006 Page 6 If a Final Subdivision includes Assessor's Parcels of Taxable Property for which building permits for both residential and non-residential construction may be issued, exclusive of Taxable Property Owner Association Property and Taxable Public Property, then the Backup Special Tax for Facilities for each Assessor's Parcel of Residential Property shall be computed exclusive of the Acreage and Assessor's Parcels of property for which building permits for non-residential construction may be issued. Notwithstanding the foregoing, if all or any portion of the Final Subdivision(s) described in the preceding paragraphs is subsequently changed or modified by recordation of a lot line adjustment or similar instrument, and only if the CFD Administrator determines that such change or modification results in a decrease in the number of Assessor's Parcels of Taxable Property for which building permits for residential construction have or may be issued within such Final Subdivision, then the Backup Special Tax for Facilities for each Assessor's Parcel of Developed Property that is part of the lot line adjustment or similar instrument for such Final Subdivision shall be a rate per Acre as calculated below. The Backup Special Tax for Facilities previously determined for an Assessor's Parcel of Developed Property that is not a part of the lot line adjustment or similar instrument for such Final Subdivision shall not be recalculated. 1. Determine the total Backup Special Tax for Facilities anticipated to apply to the changed or modified portion of the Final Subdivision area prior to the change or modification. 2. The result of paragraph 1 above shall be divided by the Acreage of Taxable Property which is ultimately expected to exist in such changed or modified portion of the Final Subdivision area, as reasonably determined by the CFD Administrator. 3. The result of paragraph 2 above shall be the Backup Special Tax for Facilities per Acre which shall be applicable to Assessor's Parcels of Developed Property in such changed or modified portion ofthe Final Subdivision area for all remaining Fiscal Years in which the Special Tax for Facilities may be levied. (d) Multiple Land Use Classes In some instances an Assessor's Parcel of Developed Property may contain more than one Land Use Class. The Maximum Special Tax for Facilities levied on an Assessor's Parcel shall be the sum of the Maximum Special Tax for Facilities for all Land Use Classes located on that Assessor's Parcel. The CFD Administrator's allocation to each type of property shall be final. City of Lake Elsinore Community Facilities District No. 2006-9 (Trieste) November 7, 2006 Page 7 2. Taxable Property Owner Association Property. Taxable Public Property. and Undeveloped Property The Maximum Special Tax for Facilities for Taxable Property Owner Association Property, Taxable Public Property, and Undeveloped Property shall be $31,966 per Acre. D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX FOR FACILITIES Commencing with Fiscal Year 2007-2008 and for each following Fiscal Year, the Council shall determine the Special Tax Requirement for Facilities and levy the Special Tax for Facilities until the amount of Special Tax for Facilities levy equals the Special Tax Requirement for Facilities. The Special Tax for Facilities shall be levied each Fiscal Year as follows: First: The Special Tax for Facilities shall be levied on each Assessor's Parcel of Developed Property in an amount equal to 100% of the applicable Assigned Special Tax for Facilities; Second: If additional monies are needed to satisfy the Special Tax Requirement for Facilities after the first step has been completed, the Special Tax for Facilities shall be levied Proportionately on each Assessor's Parcel of Undeveloped Property at up to 100% of the Maximum Special Tax for Facilities for Undeveloped Property; Third: If additional monies are needed to satisfy the Special Tax Requirement for Facilities after the first two steps have been completed, then the levy of the Special Tax for Facilities on each Assessor's Parcel of Developed Property whose Maximum Special Tax for Facilities is determined through the application of the Backup Special Tax for Facilities shall be increased in equal percentages from the Assigned Special Tax for Facilities up to the Maximum Special Tax for Facilities for each such Assessor's Parcel; Fourth: If additional monies are needed to satisfy the Special Tax Requirement for Facilities after the first three steps have been completed, then the Special Tax for Facilities shall be levied Proportionately on each Assessor's Parcel of Taxable Property Owner Association Property and Taxable Public Property at up to 100% of the Maximum Special Tax for Facilities for Taxable Property Owner Association Property or Taxable Public Property. Notwithstanding the above, the Council may, in any Fiscal Year, levy Proportionately less than 100% of the Assigned Special Tax for Facilities in step one (above), when (i) the Council is no longer required to levy the Special Tax for Facilities pursuant to steps two through four above in order to meet the Special Tax Requirement for Facilities; (ii) all authorized CFD No. 2006-9 Bonds have already been issued or the Council has covenanted that it will not issue any additional CFD No. 2006-9 Bonds (except refunding bonds) to be supported by the Special Tax for Facilities; and (iii) all Authorized Facilities have been constructed and/or acquired and all reimbursements to the developer for the construction and/or acquisition of such facilities have been paid as permitted by law. City of Lake Elsinore Community Facilities District No. 2006-9 (Trieste) November 7, 2006 Page 8 Further notwithstanding the above, under no circumstances will the Special Tax for Facilities levied against any Assessor's Parcel of Residential Property for which a Certificate of Occupancy has been issued be increased by more than ten percent as a consequence of delinquency or default by the owner of any other Assessor's Parcel within CFD No. 2006-9. E. EXEMPTIONS No Special Tax for Facilities shall be levied on up to 2.3 Acres of Property Owner Association Property and/or Public Property in CFD No. 2006-9. Tax-exempt status will be assigned by the CFD Administrator in the chronological order in which property becomes Property Owner Association Property or Public Property. However, should an Assessor's Parcel no longer be classified as Property Owner Association Property or Public Property, its tax-exempt status will be revoked. Property Owner Association Property or Public Property that is not exempt from Special Tax for Facilities under this section shall be subject to the levy of the Special Tax for Facilities and shall be taxed Proportionately as part of the fourth step in Section D above, at up to 100% of the Maximum Special Tax for Facilities for Taxable Property Owner Association Property or Taxable Public Property. F. MANNER OF COLLECTION The Special Tax for Facilities shall be collected in the same manner and at the same time as ordinary ad valorem property taxes; provided, however, that CFD No. 2006-9 may directly bill the Special Tax for Facilities, may collect the Special Tax 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. G. PREPAYMENT OF SPECIAL TAX FOR FACILITIES The following additional definitions apply to this Section G: "Duildout" means, for CFD No. 2006-9, that all expected building permits for dwelling units to be constructed in CFD No. 2006-6 have been issued, as reasonably determined by the CFD Administrator. "CFD Public Facilities" means either $3,564,033 in 2006 dollars, which shall increase by the Construction Inflation Index on July 1,2007, and on each July 1 thereafter, or such lower number as (i) shall be determined by the CFD Administrator as sufficient to provide funding for all of the Authorized Facilities, or (ii) shall be determined by the Council concurrently with a covenant that it will not issue any more CFD No. 2006-9 Bonds (except refunding bonds) to be supported by the Special Tax for Facilities levy under this Rate and Method of Apportionment as described in Section D above. City of Lake Elsinore Community Facilities District No. 2006-9 (Trieste) November 7, 2006 Page 9 "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 CFD Administrator that is reasonably comparable to the Engineering News Record Building Cost Index for the City of Los Angeles. "Future Facilities Costs" means the CFD Public Facilities minus (i) costs of Authorized Facilities previously paid from the Improvement Fund, (ii) moneys currently on deposit in the Improvement Fund available to pay costs of Authorized Facilities, and (iii) moneys currently on deposit in an escrow fund that are expected to be available to finance the cost of Authorized Facilities. "Improvement Fund" means an account specifically identified in the Indenture to hold funds which are currently available for expenditure to acquire or construct Authorized Facilities. "Previously Issued Bonds" means, for any Fiscal Year, all Outstanding Bonds that are deemed to be outstanding under the Indenture after the first interest and/or principal payment date following the current Fiscal Year. 1. Prepayment in Full Only an Assessor's Parcel of Developed Property, or Undeveloped Property for which a building permit has been issued, may be prepaid. The obligation of the Assessor's Parcel to pay the Special Tax for Facilities may be permanently satisfied as described herein, provided that a prepayment may be made with respect to a particular Assessor's Parcel only ifthere are no delinquent Special Taxes with respect to such Assessor's Parcel at the time of prepayment. An owner of an Assessor's Parcel intending to prepay the Special Tax for Facilities obligation shall provide the CFD Administrator with written notice of intent to prepay. Within 30 days of receipt of such written notice, the CFD Administrator shall notifY such owner ofthe prepayment amount for such Assessor's Parcel. The CFD Administrator may charge a reasonable fee for providing this service. Prepayment must be made not less than 45 days prior to the next occurring date that notice of redemption of CFD No. 2006-9 Bonds from the proceeds of such prepayment may be given by the Trustee pursuant to the Indenture. The Special Tax for Facilities Prepayment Amount (defined below) shall be calculated as summarized below (capitalized terms as defined below): Bond Redemption Amount plus Redemption Premium plus Future Facilities Amount plus Defeasance Amount plus Administrative Fees and Expenses less Reserve Fund Credit City of Lake Elsinore Community Facilities District No. 2006-9 (Trieste) November 7, 2006 Page 10 less Total: equals Capitalized Interest Credit Special Tax for Facilities Prepayment Amount As of the proposed date of prepayment, the Special Tax for Facilities Prepayment Amount shall be calculated as follows: Parag:raph No.: 1. Confirm that no Special Tax delinquencies apply to such Assessor's Parcel. 2. For Assessor's Parcels of Developed Property, compute the Assigned Special Tax for Facilities and Backup Special Tax for Facilities. For Assessor's Parcels of Undeveloped Property for which a building permit has been issued, compute the Assigned Special Tax for Facilities and Backup Special Tax for Facilities for that Assessor's Parcel as though it was already designated as Developed Property, based upon the building permit which has already been issued for that Assessor's Parcel. 3. (a) Divide the Assigned Special Tax for Facilities computed pursuant to paragraph 2 by the total estimated Assigned Special Tax for Facilities for the entire CFD No. 2006-9 based on the Developed Property Special Tax for Facilities which could be levied in the current Fiscal Year on all expected development through Buildout of CFD No. 2006-9, excluding any Assessor's Parcels which have been prepaid, and (b) Divide the Backup Special Tax for Facilities computed pursuant to paragraph 2 by the total estimated Backup Special Tax for Facilities at Buildout for the entire CFD No. 2006-9, excluding any Assessor's Parcels which have been prepaid. 4. Multiply the larger quotient computed pursuant to paragraph 3(a) or 3(b) by the Previously Issued Bonds to compute the amount of Previously Issued Bonds to be retired and prepaid (the "Bond Redemption Amount"). 5. Multiply the Bond Redemption Amount computed pursuant to paragraph 4 by the applicable redemption premium (e.g., the redemption price-IOO%), if any, on the Previously Issued Bonds to be redeemed (the "Redemption Premium"). 6. Compute the current Future Facilities Costs. 7. Multiply the larger quotient computed pursuant to paragraph 3(a) or 3(b) by the amount determined pursuant to paragraph 6 to compute the amount of Future Facilities Costs to be prepaid (the "Future Facilities Amount"). 8. Compute the amount needed to pay interest on the Bond Redemption Amount from the first bond interest and/or principal payment date following the current Fiscal Year until the earliest redemption date for the Previously Issued Bonds. City of Lake Elsinore Community Facilities District No. 2006-9 (Trieste) November 7, 2006 Page 11 9. Determine the Special Tax for Facilities levied on the Assessor's Parcel in the current Fiscal Year which has not yet been paid. 10. Compute the minimum amount the CFD Administrator reasonably expects to derive from the reinvestment of the Special Tax for Facilities Prepayment Amount less the Future Facilities Amount and the Administrative Fees and Expenses (defined below) from the date of prepayment until the redemption date for the Previously Issued Bonds to be redeemed with the prepayment. 11. Add the amounts computed pursuant to paragraphs 8 and 9 and subtract the amount computed pursuant to paragraph 10 (the "Defeasance Amount"). 12. The administrative fees and expenses ofCFD No. 2006-9 are as calculated by the CFD Administrator and include the costs of computation ofthe prepayment, the costs to invest the prepayment proceeds, the costs of redeeming CFD No. 2006-9 Bonds, and the costs of recording any notices to evidence the prepayment and the redemption (the "Administrative Fees and Expenses"). 13. The reserve fund credit (the "Reserve Fund Credit") shall equal the lesser of: (a) the expected reduction in the reserve requirement (as defined in the Indenture), if any, associated with the redemption of Previously Issued Bonds as a result of the prepayment, or (b) the amount derived by subtracting the new reserve requirement (as defined in the Indenture) in effect after the redemption of Previously Issued Bonds as a result of the prepayment from the balance in the reserve fund on the prepayment date, but in no event shall such amount be less than zero. No Reserve Fund Credit shall be granted if the amount then on deposit in the reserve fund for the Previously Issued Bonds is below 100% ofthe reserve requirement (as defined in the Indenture). 14. If any capitalized interest for the Previously Issued Bonds will not have been expended as of the date immediately following the first interest and/or principal payment following the current Fiscal Year, a capitalized interest credit shall be calculated by multiplying the larger quotient computed pursuant to paragraph 3(a) or 3(b) by the expected balance in the capitalized interest fund or account under the Indenture after such first interest and/or principal payment (the "Capitalized Interest Credit"). 15. The Special Tax for Facilities prepayment is equal to the sum of the amounts computed pursuant to paragraphs 4, 5, 7, 11 and 12, less the amounts computed pursuant to paragraphs 13 and 14 (the "Special Tax for Facilities Prepayment Amount"). From the Special Tax for Facilities Prepayment Amount, the amounts computed pursuant to paragraphs 4, 5, 11, 13 and 14 shall be deposited into the appropriate fund as established under the Indenture and be used to retire CFD No. 2006-9 Bonds or make debt service payments. The amount computed pursuant to paragraph 7 shall be deposited into the City of Lake Elsinore Community Facilities District No. 2006-9 (Trieste) November 7, 2006 Page 12 Improvement Fund. The amount computed pursuant to paragraph 12 shall be retained by CFDNo.2006-9. The Special Tax for Facilities Prepayment Amount may be insufficient to redeem a full $5,000 increment ofCFD No. 2006-9 Bonds. In such cases, the increment above $5,000 or integral multiple thereof will be retained in the appropriate fund established under the Indenture to be used with the next prepayment of CFD No. 2006-9 Bonds or to make debt service payments. As a result of the payment of the current Fiscal Year's Special Tax for Facilities levy as determined under paragraph 9 ( above), the CFD Administrator shall remove the current Fiscal Year's Special Tax for Facilities levy for such Assessor's Parcel from the County tax rolls. With respect to any Assessor's Parcel that is prepaid, the Council shall cause a suitable notice to be recorded in compliance with the Act, to indicate the prepayment ofthe Special Tax for Facilities and the release of the Special Tax for Facilities lien on such Assessor's Parcel, and the obligation of such Assessor's Parcel to pay the Special Tax for Facilities shall cease. Notwithstanding the foregoing, no Special Tax for Facilities prepayment shall be allowed unless, at the time of such proposed prepayment, the amount of Maximum Special Tax for Facilities that may be levied on Taxable Property within CFD No. 2006-9 (after excluding 2.3 Acres of Property Owner Association Property and/or Public Property in CFD No. 2006- 9 as set forth in Section E) both prior to and after the proposed prepayment is at least equal to the sum of (i) the Administrative Expenses, as defined in Section A above, and (ii) 1.10 times maximum annual debt service, in each remaining Fiscal Year on the Outstanding Bonds. 2. Prepayment in Part The Special Tax for Facilities on an Assessor's Parcel of Developed Property or an Assessor's Parcel of Undeveloped Property for which a building permit has been issued may be partially prepaid. The amount of the prepayment shall be calculated as in Section G.l; except that a partial prepayment shall be calculated according to the following formula: PP = [(PE - A) x F] + A These terms have the following meaning: PP = the partial prepayment. PE = the Special Tax for Facilities Prepayment Amount calculated according to Section G.1. F = the percentage, expressed as a decimal, by which the owner of the Assessor's Parcel is partially prepaying the Special Tax for Facilities. A = the Administrative Fees and Expenses calculated according to Section G.l. City of Lake Elsinore Community Facilities District No. 2006-9 (Trieste) November 7, 2006 Page 13 The owner of any Assessor's Parcel who desires such prepayment shall notify the CFD Administrator of such owner's intent to partially prepay the Special Tax for Facilities and the percentage by which the Special Tax for Facilities shall be prepaid. The CFD Administrator shall provide the owner with a statement ofthe amount required for the partial prepayment of the Special Tax for Facilities for an Assessor's Parcel within 30 days of the request and may charge a reasonable fee for providing this service. With respect to any Assessor's Parcel that is partially prepaid, the Council shall (i) distribute the funds remitted to it according to Section G.l, and (ii) indicate in the records ofCFD No. 2006-9 that there has been a partial prepayment of the Special Tax for Facilities and that a portion of the Special Tax for Facilities with respect to such Assessor's Parcel, equal to the outstanding percentage (1.00- F) of the remaining Maximum Special Tax for Facilities, shall continue to be levied on such Assessor's Parcel pursuant to Section D above. H. TERM OF SPECIAL TAX FOR FACILITIES The Special Tax for Facilities shall be levied for a period not to exceed forty years commencing with Fiscal Year 2007-2008, provided however that the Special Tax for Facilities will cease to be levied in an earlier Fiscal Year if the CFD Administrator has determined (i) that all required interest and principal payments on the CFD No. 2006-9 Bonds have been paid; (ii) all Authorized Facilities have been constructed and/or acquired and all reimbursements to the developer for the construction and/or acquisition of such facilities have been paid as permitted by law; and (iii) all other obligations ofCFD No. 2006- 9 have been satisfied. I. SPECIAL TAX FOR SERVICES The following additional definitions apply to this Section I: "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 1 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 1 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. 2006-9 in any Fiscal Year on any Assessor's Parcel. "Operating Fund" means a fund that shall be maintained for CFD No. 2006-9 for any Fiscal Year to pay for the actual costs of maintenance related to the Service Area, and the applicable Administrative Expenses. City of Lake Elsinore Community Facilities District No. 2006-9 (Trieste) November 7, 2006 Page 14 "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. 2006-9 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 CFD No. 2006-9 equal to (i) the budgeted costs directly related to the Service Area, including maintenance, repair and replacement of certain components of the Service Area which have been accepted and maintained or are reasonably expected to be accepted and maintained during the current Fiscal Year, (ii) pay a proportionate share of Administrative Expenses, and (iii) anticipated Special Tax for Services delinquencies based on the delinquency rate for the Special Tax for Services levy in CFD No. 2006-9 for the previous Fiscal Year, less (iv) the Operating Fund Balance, as determined by the CFD Administrator. 1. Rate and Method of Apportionment of the Special Tax for Services Commencing with Fiscal Year 2007-2008 and for each subsequent Fiscal Year, the Council shall levy the Special Tax for Services on (i) all Assessor's Parcels containing a Developed Single Family Unit or Developed Multifamily Unit and (ii) all Assessor's Parcels of Non- Residential Property, up to the applicable Maximum Special Tax for Services to fund the Special Tax Requirement for Services. The Maximum Special Tax for Services for Fiscal Year 2007-2008 shall be $251.78 per Developed Single Family Unit, $125.89 per Developed Multifamily Unit, and $567.02 per Acre for each Assessor's Parcel of Non-Residential Property. On each July 1, commencing July 1,2008, 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 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. 2006-9 may collect the Special Tax for Services at a different time or in a different manner if necessary to meet its funding requirements. City of Lake Elsinore Community Facilities District No. 2006-9 (Trieste) November 7, 2006 Page 15 J. APPEALS AND INTERPRETATIONS Any landowner or resident who feels that the amount of the Special Tax levied on their Assessor's Parcel is in error may submit a written appeal to CFD No. 2006-9. The CFD Administrator shall review the appeal and if the CFD Administrator concurs, the amount of the Special Tax levied shall be appropriately modified. The Council may interpret this Rate and 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 resident appeals. Any decision of the Council shall be final and binding as to all persons. K:\CLIENTS2\ShopojjGroup.TriesteIRMA\Trieste CFD RMA Draft 2. doe Revised: 2/28/07 City of Lake Elsinore Community Facilities District No. 2006-9 (Trieste) November 7, 2006 Page 16 CITY OF LAKE ELSINORE AND CFD No. 2006-9 CERTIFICATE 1. Pursuant to Section C of the Rate and Method of Apportionment, the City of Lake Elsinore ("City") and Community Facilities District No. 2006-9 ofthe City of Lake Elsinore ("CFD No. 2006-9") hereby agree to a reduction in the Assigned Special Tax for Facilities for Developed Property, and the Backup Special Tax for Facilities attributable to a Final Subdivision within CFD No. 2006-9: (a) The information in Table 1 relating to the Assigned Special Tax for Facilities for Developed Property within CFD No. 2006-9 shall be modified as follows: Residential Property More than 2,100 sq. ft. $_perunit 2 Residential Property 1,800 - 2,100 sq. ft. $ _ per unit 3 Residential Property Less than 1,800 sq. ft. $ _ per unit 4 Non-Residential Property NA $ _ per Acre (b) The Backup Special Tax for Facilities attributable to a Final Subdivision within CFD No. 2006-9, as stated in Section C.l.(c), shall be reduced from $31,966 per Acre to $_ per Acre. 2. The Special Tax for Facilities may only be modified prior to the first issuance ofCFD No. 2006- 9 Bonds. 3. Upon execution of the Certificate by the City and CFD No. 2006-9, the City shall cause an amended notice of Special Tax lien for CFD No. 2006-9 to be recorded reflecting the modifications set forth herein. By execution hereof, the undersigned acknowledges, on behalf of the City and CFD No. 2006-9, receipt ofthis Certificate and modification of the Rate and Method of Apportionment as set forth in this Certificate. CITY OF LAKE ELSINORE By: Date: CFD Administrator COMMUNITY FACILITIES DISTRICT NO. 2006-9 OF THE CITY OF LAKE ELSINORE By: Date: ORDINANCE NO. 1209 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE AMENDING APPLICABLE CHAPTERS OF THE LAKE ELSINORE MUNCIPAL CODE (LEMC) BY MODIFING CHAPTER 17.48 (C-2, GENERAL COMMERCIAL DISTRICT) TO ALLOW 'CARD ROOMS' AS A CONDITONAL USE, SUBJECT TO A CONDITONAL USE PERMIT WHEREAS, Ted Kingston, Lake Elsinore Hotel & Casino, filed an application, to amend Chapter 17.48 (C-2, General Commercial District) to allow 'Card rooms' as a conditional use, subject to a Conditional Use Permit; and WHEREAS, a Negative Declaration has been prepared for the project pursuant to the requirements of the California Environmental Quality Act (CEQA) Section 15070, describing the reasons that the proposed zoning code text amendment will not have a significant effect on the environment and does not require the preparation of an environmental impact report; and WHEREAS, Section 17.84.050 of the LEMC stipulates that the City Council shall make a final determination on a Zoning Ordinance text amendment; and WHEREAS, public notice of the application has been given, and the City Council has considered evidence presented by the Community Development Department and other interested parties at a public hearing held with respect to this item on February 13, 2006. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE DOES ORDAIN AS FOLLOWS: SECTION 1. The City Council has considered the proposed Zoning Code Text Amendment. The City Council finds and determines that an Initial Study was completed to analyze the potential environmental impacts of the proposed project. The Initial Study concluded that the proposed Zoning Code Text Amendment would have no significant environmental impacts. CITY COUNCIL ORDINANCE NO. 1209 PAGE20F4 SECTION 2. That in accordance with State Planning and Zoning law and the LEMC, the City Council makes the following findings for approval of Text Amendment No. 2006-04: 1. The proposed Text Amendment to the City's Chapter 17.48 (C-2 General Commercial District) will: a. Not be detrimental to the to the health, safety, comfort, or the general welfare of the persons working or residing within the City in that the revisions are proposed to allow 'card room' as a conditional use, subject to a Conditional Use Permit. b. Not be injurious to property or improvements within the City because the proposed amendment to allow 'card rooms' and associated uses will assist in enhancing property values and resale values for businesses that have 'card rooms' and associated uses in that they are permitted as a conditional use and subject to a Conditional Use Permit in conjunction with Section 5.28 (Cardrooms) of the Lake Elsinore Municipal Code (LEMC). 2. The proposed Zoning Code Text Amendment is consistent with the General Plan as the proposed changes to Chapter 17.48 (General Commercial District) is consistent with the General Plan General Commercial designation. Furthermore, Table 111-5 (General Plan/Zoning Compatibility Matrix) indicates that C-2 (General Commercial District) is a zone that is compatible with the General Commercial General Plan designation. It should be noted that the proposed revision to Chapter 17.48 (C-2, General Commercial District) will not inhibit the implementation of appropriate design standards as set forth in the Community Design Element of the General Plan. SECTION 3. That Chapter 17.48.030(H) is hereby amended as follows: Chapter 17.48.030(H) H. Card rooms, or any other establishment associated with card playing as may be permitted under the provisions of Section 330 of the Penal Code of the State of California and Chapter 5.28 of the Lake Elsinore Municipal Code; provided, however, a conditional use permit for a card room or other establishment pursuant to this subsection 17.48.030 H CITY COUNCIL ORDINANCE NO. 1209 PAGE30F4 must be submitted to and approved by the City Council in accordance with Lake Elsinore Municipal Code Chapter 5.28. Chapter 17.48.030(1) I. Other uses that the Planning Commission finds by resolution to be in accord with the purpose of this Chapter and having characteristics similar to those uses listed in this Section. A list of these uses shall be maintained in the Planning Division for future reference. SECTION 4. If any provision, clause, sentence or paragraph of this Ordinance or the application thereof to any person or circumstance shall be held invalid, such invalidity shall not affect the other provisions of this Ordinance and are hereby declared to be severable. SECTION 5. This Ordinance shall take effect thirty (30) days after the date of its final passage. The City Clerk shall certify as to adoption of this Ordinance and cause this Ordinance to be published and posted in the manner required by law. INTRODUCED AND APPROVED UPON FIRST READING this 13th day of February, 2007, by the following vote: AYES: COUNCILMEMBERS: BUCKLEY, KELLEY, SCHIFFNER, MAGEE NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: HICKMAN ABSTAIN: COUNCILMEMBERS: NONE CITY COUNCIL ORDINANCE NO. 1209 PAGE40F4 PASSED, APPROVED AND ADOPTED UPON SECOND READING this 27th day of February, 2007, upon the following roll call vote: AYES: COUNCILMEMBERS: BUCKLEY, KELLEY, SCHIFFNER, MAGEE, HICKMAN NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: NONE ABSTAIN: COUNCILMEMBERS: NONE ert E. Mage, ayor City of Lake E more ATTEST: ~_lDr~1Jp- Solo t' Frederick Ray, CMC, City erk City of Lake Elsinore Barbara Zei eibold, City Attorney City of Lake Elsinore ORDINANCE NO. 1210 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, APPROVING ZONE CHANGE NO. 2006-10 TO RE-ZONE THE PROPERTIES LOCATED AT 20930, 20970, AND 21000 MALAGA ROAD FROM (C-1) NEIGHBORHOOD COMMERCIAL TO (C-2) GENERAL COMMERCIAL WHEREAS, Ted Kingston, Lake Elsinore Hotel and Casino, submitted an application for Zone Change No. 2006-10 to change the zoning designation for properties located at 20930 Malaga Road (APN 365-040-016),20970 Malaga Road (APN 365-040-003), and 21000 Malaga Road (APN 365-040-011) from C-l (Neighborhood Commercial District) to C-2 (General Commercial District) (the "Zone Change"). The three (3) subject lots, totaling approximately 9.61 acres, are generally located at the northwest comer of Malaga Road and Casino Drive; and WHEREAS, the City Council of the City of Lake Elsinore has been delegated with the responsibility of approving of Zone Changes; and WHEREAS, on February 13, 2007, at a duly noticed public hearing, the City Council considered evidence presented by the Community Development Department and other interested parties and the recommendation of the Planning Commission with respect to this item. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE DOES ORDAIN AS FOLLOWS: SECTION 1. The Planning Commission has considered the Zone Change prior to making recommendation that the City Council approve the request. SECTION 2. That in accordance with State Planning and Zoning law and the City of Lake Elsinore Municipal Code, the City Council makes the following findings for the approval of Zone Change 2006-10: 1. The Zone Change will be consistent with the goals, objectives, and policies of the General Plan and the development standards established in the Lake Elsinore Municipal Code. The Zone Change, which will re-zone the subject properties from their current zoning designation of C-l (Neighborhood Commercial District) to C-2 (General Commercial District), is consistent with the goals, objectives, and policies of the General Plan. The General Plan designation General Commercial is intended to CITY COUNCIL ORDINANCE 1210 PAGE 2 OF 3 provide for a wide range of retail and service activities, including department stores, restaurants, hotels, theaters, offices and specialized services. Furthermore, Table III-5 (General Plan/Compatibility Matrix) indicates that the C-2 (General Commercial District) designation is a zone that is compatible with General Plan designation General Commercial. The Zone Change is consistent with the General Plan designation General Commercial in that its intent is to reserve appropriate locations consistent with the General Plan designation General Commercial and to accommodate a full-range of retail stores, offices, personal and business service establishments offering commodities and services scaled to meet the needs of the residents and entire City. 2. The Zone Change will not be detrimental to the general health, safety, comfort, or welfare of persons residing or working within the neighborhood of the Zone Change or the City, or injurious to property or improvements in the neighborhood or the City. The Zone Change has been analyzed by all City departments relative to its potential to be detrimental to the health, safety, comfort, and welfare of the persons residing or working within the neighborhood of the proposed amendment. All comments made by the various City departments have been incorporated into the project entitlements as conditions of approval. Specific conditions related to installation and maintenance of landscaping, street dedications, regulations of points of vehicular ingress and egress, on-site vehicular circulation, and nuisances were integrated in order to eliminate any negative impacts to the surrounding neighborhoods and the City. SECTION 3. If any provIsIOn, clause, sentence or paragraph of this Ordinance or the application thereof to any person or circumstance shall be held invalid, such invalidity shall not affect the other provisions of this Ordinance and are hereby declared to be severable. SECTION 4. This Ordinance shall take effect thirty (30) days after the date of its final passage. The City Clerk shall certify as to adoption of this Ordinance and cause this Ordinance to be published and posted in the manner required by law. CITY COUNCIL ORDINANCE 1210 PAGE30F3 INTRODUCED AND APPROVED UPON FIRST READING this 13th day of February, 2007, by the following vote: AYES: COUNCILMEMBERS: BUCKLEY, KELLEY, SCHIFFNER, MAGEE NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: HICKMAN ABSTAIN: COUNCILMEMBERS: NONE PASSED, APPROVED AND ADOPTED UPON SECOND READING this 27th day of February, 2007, upon the following roll call vote: AYES: COUNCILMEMBERS: BUCKLEY, KELLEY, SCHIFFNER, MAGEE, HICKMAN NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: NONE ABSTAIN: COUNCILMEMBERS: ATTEST: f' ~10'd if 1; ~. .&2J rederick Ray, CMC, City ctierk ) { eib01d, City Attorney 1sinore - ORDINANCE NO. 1211 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE AMENDING SECTION 2.08.030 OF THE LAKE ELSINORE MUNICIPAL CODE CODIFYING REDEVELOPMENT AGENCY BOARD MEMBER COMPENSATION WHEREAS, the City Council by Ordinance 605-B adopted in 1980 has declared the need for a redevelopment agency to function within the City of Lake Elsinore ("City"); and WHEREAS, the City Council has also declared itself to be the governing board of the Redevelopment Agency of the City of Lake Elsinore and the members of the City Council have served in the capacity of Agency Board members since the Agency was activated; and WHEREAS, in accordance with the provisions of California Health & Safety Code Section 33114.5, members of the Redevelopment Agency of the City of Lake Elsinore receive compensation of $30 per meeting up to a maximum of four meetings a month for their service as agency members; and WHEREAS, the City Council desires to codify the Agency's compensation by amending section 2.08.030 of the Lake Elsinore Municipal Code. THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE DOES ORDAIN AS FOLLOWS: SECTION 1. Section 2.08.030 "Redevelopment Agency" of the Lake Elsinore Municipal Code is hereby amended to add a new subsection C as follows: "C. Redevelopment Agency members shall receive $30 per meeting up to a maximum of four meetings a month as compensation for their services. In addition, members shall receive their actual and necessary expenses incurred in the discharge of their duties." SECTION 2. If any provision, clause, sentence or paragraph of this Ordinance or the application thereof to any person or circumstance shall be held invalid, such invalidity shall not affect the other provisions of this Ordinance and are hereby declared to be severable. CITY COUNCIL ORDINANCE NO. 1211 PAGE 2 OF 3 SECTION 3. This Ordinance shall take effect thirty (30) days after the date of its final passage. The City Clerk shall certify as to adoption of this Ordinance and cause this Ordinance to be published and posted in the manner required by law. INTRODUCED AND APPROVED UPON FIRST READING this 13th day of February, 2007, by the following vote: AYES: COUNCILMEMBERS: BUCKLEY, KELLEY, SCHIFFNER, MAGEE NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: HICKMAN ABSTAIN: COUNCILMEMBERS: NONE PASSED, APPROVED AND ADOPTED UPON SECOND READING this 2ih day of February, 2007, upon the following roll call vote: AYES: COUNCILMEMBERS: BUCKLEY, KELLEY, SCHIFFNER, MAGEE, HICKMAN NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: NONE ABSTAIN: COUNCILMEMBERS: NONE CITY COUNCIL ORDINANCE NO. 1211 PAGE30F3 ATTEST: i'JfiLuL r-- .~ '-), f' );;J J,fJ1 Frederick Ray, CMC, ty Clerk City of Lake Elsinore ORDINANCE NO. 1212 AN ORDINANCE OF THE CITY OF LAKE ELSINORE AMENDING SECTIONS 16.83.020, 16.83.030, 16.83.040, 16.83.050, 16.83.060, AND 16.83.080 OF CHAPTER 16.83 OF THE LAKE ELSINORE MUNICIPAL CODE REGARDING THE TRANSPORTATION UNIFORM MITIGATION FEE PROGRAM WHEREAS, Chapter 16.83 Western Riverside County Transportation Uniform Mitigation Fee Program was added to the Lake Elsinore Municipal Code in 2003 to establish a schedule of fees imposed on new development to enlarge the capacity of the Regional System of Highways and Arterials; and WHEREAS, an updated "W e~tern Riverside County Transportation Fee Nexus Study (Nexus Study) has been prepared and is adopted and incorporated herein; and WHEREAS, the City Council has determined to amend certain sections of Chapter 16.83 to reflect changes recommended by Western Riverside Council of Governments ("WROG"). THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE DOES ORDAIN AS FOLLOWS: SECTION 1: Section 16.83.020 is hereby amended and restated as follows: 16. 83.020 Findings. A. The City is a Member Agency of WRCOG, a joint powers agency consisting of the City, the County of Riverside, and the thirteen cities situated in Western Riverside County. Acting in concert, the Member Agencies of WRCOG developed a plan whereby the shortfall in funds needed to enlarge the capacity of the Regional System of Highways and Arterials in Western Riverside County (the "Regional System") could be made up in part by a Transportation Uniform Mitigation Fee on future residential, commercial and industrial development. A map depicting the boundaries of Western Riverside County is available in the office of the City Clerk and made a part hereof. As a Member Agency ofWRCOG, the City participated in the preparation of a certain "Western Riverside County Transportation Uniform Mitigation Fee Nexus Study," dated October 18, 2002 CITY COUNCIL ORDINANCE NO. 1212 PAGE 2 OF 12 ("2002 Nexus Study") prepared pursuant to California Government Code, Section 66000 et seq., the Mitigation Fee Act. Based on this nexus study, the City adopted and implemented an ordinance authorizing its participation in a Transportation Uniform Mitigation Fee Program. B. WRCOG with the assistance of its member agencies have now prepared an updated "Western Riverside County Transportation Fee Nexus Study" ("Nexus Study") pursuant to California Government Code Section 66000 et seq., the Mitigation Fee Act, for the purpose of updating the fees imposed by Ordinance No. 1096. The Nexus Study is available in the office of the City Clerk and made a part hereof. C. Consistent with its previous findings made in adoption of Ordinance No. 1096, the City Council has been informed and advised, and hereby finds, that future development within Western Riverside County and the Cities therein will result in traffic volumes exceeding the capacity of the Regional System as it presently exists. D. The City Council has been further informed and advised, and hereby finds, that if the capacity of the Regional System is not enlarged, the result will be substantial traffic congestion in all parts of Western Riverside County and the City, with unacceptable Levels of Service throughout Western Riverside County by 2030. E. The City Council has been further advised, and so finds that funding, in addition to those fees adopted pursuant to the 2002 Nexus Study, will be inadequate to fund construction of the Regional System. Absent an update of the "Transportation Uniform Mitigation Fee" ("TUMF") based on the Nexus Study, existing and known future funding sources will be inadequate to provide necessary improvements to the Regional System, resulting in an unacceptably high level of traffic congestion within and around Western Riverside County and the City. F. The City Council has reviewed the Nexus Study, and hereby finds that future development within the County and City will substantially adversely affect the Regional System, and that unless such development contributes to the cost of improving the Regional System, the Regional System will operate at unacceptable Levels of Service. CITY COUNCIL ORDINANCE NO. 1212 PAGE 3 OF 12 G. The City Council hereby finds and determines that the failure to mitigate growing traffic impacts on the Regional System within Western Riverside County and the City will substantially impair the ability of public safety services (police and fire) to respond. The failure to mitigate impacts on the Regional System will adversely affect the public health, safety and welfare. H. The City Council further finds and determines that there is a reasonable and rational relationship between the use of the TUMF and the type of development projects on which the fees are imposed because the fees will be used to construct the transportation improvements that are necessary for the safety, health and welfare of the residential and non-residential users of the development proj ects on which the TUMF will be levied. 1. The City Council finds and determines that there is a reasonable and rational relationship between the need for the improvements to the Regional System and the type of development projects on which the TUMF is imposed because it will be necessary for the residential and non-residential users of such projects to have access to the Regional System. Such development will benefit from the Regional System improvements and the burden of such development will be mitigated in part by the payment of the TUMF. J. The City Council further finds and determines that the cost estimates set forth in the Nexus Study are reasonable cost estimates for constructing the Regional System improvements, and that the amount of the TUMF expected to be generated by new development will not exceed the total fair share cost to such development. K. The City Council further finds that the cost estimates set forth in the Nexus Study are reasonable cost estimates for the facilities that comprise the Regional System; and that TUMF program revenues to be generated by new development will not exceed the total fair share of these costs. L. The fees collected pursuant to this Chapter shall be used to help pay for the construction and acquisition of the Regional System improvements identified in the Nexus Study. The need for the improvements is related to new development because such development results in additional traffic thus creating the demand for the improvements. CITY COUNCIL ORDINANCE NO. 1212 PAGE 4 OF 12 M. By notice duly given and published, the City Council set the time and place for a public hearing on the Nexus Study and the fee proposed thereunder, and at least ten days prior to the hearing, the City made the Nexus Study available to the public. N. At the time and place set for the hearing, the City Council duly considered that data and information provided by the public relative to the cost of the services for which the fees are proposed and all other comments, whether written or oral, submitted prior to the conclusion of the hearing. O. The City Council finds that the Nexus Study proposes a fair and equitable method for distributing a portion of the unfunded costs of improvements to the Regional System. SECTION 2. Section 16.83.030 is hereby amended and restated as follows: 16.83.030 Definitions. For the purpose of this chapter, the following words, terms and phrases shall have the following meanings: "Class' A' office" means an office building that is typically characterized by high quality design, use of high end building materials, state of the art technology for voice and data, on site support services/maintenance, and often includes full service ancillary uses such as, but not limited to a bank, restaurant/office coffee shop, health club, printing shop, and reserved parking. The minimum requirements of an office building classified as class "A" Office shall be as follows: (i) minimum of three stories; (ii) minimum of 15,000 square feet per floor; (iii) steel frame construction; (iv) central, interior lobby; and (v) access to suites shall be from inside the building unless the building is located in a central business district with major foot traffic, in which case the first floor may be accessed from the street to provide entrances/ exits for commercial uses within the building. "Class 'B' office" means an office building that is typically characterized by high quality design, use of high end building materials, state of the art technology for voice and data, on site support services/maintenance, and often includes full service ancillary uses such as, but not limited to a bank, restaurant/office coffee shop, health club, printing shop, and reserved parking. The minimum requirements of an office building classified as Class "B" Office shall be as follows: (i) minimum of two stories; (ii) minimum of 20,000 square feet per floor; (iii) steel CITY COUNCIL ORDINANCE NO. 1212 PAGE 5 OF 12 frame, concrete or masonry shell construction; (iv) central, interior lobby; and (v) access to suites shall be from inside the building unless the building is located in a central business district with major foot traffic, in which case the first floor may be accessed from the street to provide entrances/exits for commercial uses within the building. "Development project" or "project" means any project undertaken for the purpose of development including the issuance of a permit for construction. "Financing district" means a community facilities district or similar benefit district for the purpose of financing public infrastructure. "Gross acreage" means the total property area as shown on a land division map of record, or described through a recorded legal description of the property. This area shall be bounded by road rights of way and property lines. "Habitable structure" means any structure or part thereof where persons reside, congregate or work and which is legally occupied in whole or part in accordance with applicable building codes, and state and local laws. "Industrial project" means any development project that proposes any industrial or manufacturing use allowed in Title 17 (Zoning) of the City Municipal Code zoning classifications: C-M, M-l, M-2, or Specific Plan District with one of the aforementioned zones used as the base zone. "Low income residential housing" means residential units in publicly subsidized projects constructed as housing for low-income households as such households are defined pursuant to section 50079.5 of the Health and Safety Code. "Publicly subsidized projects," as the term is used herein, shall not include any project or project applicant receiving a tax credit provided by the State of California Franchise Tax Board. "Multi-family residential unit" means a development project that has a density of greater than eight (8) residential dwelling units per gross acre. "Non-residential unit" means retail commercial, service commercial and industrial development which is designed primarily for non-dwelling use, but shall include hotels and motels. CITY COUNCIL ORDINANCE NO. 1212 PAGE 6 OF 12 "Residential dwelling unit" means a building or portion thereof used by one (1) family and containing but one (1) kitchen, which is designed primarily for residential occupancy including single-family and multi-family dwellings. "Residential Dwelling Unit" shall not include hotels or motels. "Retail commercial project" means any development project that proposes any commercial use not defined as a service commercial proj ect allowed in Title 17 (Zoning) of the City Municipal Code classifications: C-O, C-l, C-2, C-P, or Specific Plan District with one of the aforementioned zones used as the base zone. "Service commercial project" means any development project that is predominately dedicated to business activities associated with professional or administrative services, and typically consist of corporate offices, financial institutions, legal and medical offices. "Single family residential unit" means each residential dwelling unit in a development that has a density of eight (8) units to the gross acre or less. SECTION 3. The following shall be added as the last sentence of Section 16.83.040, subpart A: Following the increase in fees set forth herein as of July 1,2009, such future changes to the schedule of fees shall be adopted by resolution. SECTION 4. Section 16.83.040, subparts B, C, D, E, F and G are hereby amended and restated as follows: B. Fee calculation. T he fees shall be calculated according to the calculation methodology set forth in the Fee Calculation Handbook adopted July 14, 2003, as amended from time to time. The following shall be observed for purposes of calculating the fee: 1. For non-residential projects, the fee rate utilized shall be based upon the predominate use of the building or structure identified in the building permit or structure identified in the building permit and as further specified in the TUMF Administrative Plan. CITY COUNCIL ORDINANCE NO. 1212 PAGE 7 OF 12 2. For non-residential projects, the fee shall be calculated on the total square footage of the building or structure identified in the building permit and as further specified in the TUMF Administrative Plan. C. Fee adjustment. The fee schedule may be periodically reviewed and the amounts adjusted by the WRCOG Executive Committee. The fees may be increased or decreased as provided herein to reflect changes in actual and estimated costs of the Regional System including, but not limited to, debt service, lease payments and construction costs. The adjustment of the fees may also reflect changes in the facilities required to be constructed, in estimated revenues received pursuant to this chapter, as well as the availability or lack thereof of other funds with which to construct the Regional System. WRCOG shall review the TUMF program not less than every four (4) years. D. Purpose. The purpose of the TUMF is to fund those certain improvements to the Regional System identified in the Nexus Study. E. Applicability. The TUMF shall apply to all new development within the City unless otherwise exempt hereunder. F. Exemptions. The following new development shall be exempt from the TUMF: 1. Low income residential housing. 2. Government/public buildings, public schools and public facilities. 3. The rehabilitation and/or reconstruction of any habitable structure in use on or after January 1, 2000 provided that the same or fewer traffic trips are generated as a result thereof. 4. Projects which are the subject of a Development Agreement entered into pursuant to Government Code Section 65864 et seq., prior to the effective date of this chapter, wherein the imposition of new fees are expressly prohibited provided that if the term of such a Development Agreement is extended by amendment or by any other manner after the effective date of this chapter, the TUMF shall be imposed. CITY COUNCIL ORDINANCE NO. 1212 PAGE 8 OF 12 5. Guest quarters, as defined in Chapter 1 7 (Zoning) of the City Municipal Code. 6. Additional single family residential units located on the same parcel pursuant to the provisions of any agricultural zoning classifications of any agricultural zoning classifications as set forth in Chapter 17 (Zoning) of the City Municipal Code. 7. Kennels established in connection with an existing single family residential unit and as defined in Chapter 17 (Zoning) of the City Municipal Code. 8. Second units pursuant to Chapter 17 (Zoning) of the City Municipal Code. 9. The sanctuary building of a church or other house of worship, eligible for a property tax exemption. 10. Any nonprofit corporation or nonprofit organization offering and conducting full-time day school at the elementary or high school level for students between the ages of five and eighteen years. G. Credits. Regional System improvements may be credited toward the TUMF in accordance with the TUMF Administrative Plan and the following: 1. Regional Tier a. Arterial Credits. If a developer constructs arterial improvements identified on the Regional System, the developer shall receive credit for all costs associated with the arterial component based on approved unit cost assumptions for the Regional System. All such credits must have prior written approval from WRCOG. b. Other Credits. In special circumstances, when a developer constructs off-site improvements such as an interchange, bridge, or railroad grade separation, credits shall be determined by WRCOG and the City in consultation with the developer. All such credits must have prior written approval from WRCOG. CITY COUNCIL ORDINANCE NO. 1212 PAGE 9 OF 12 c. The amount of the development fee credit shall not exceed the maximum amount determined by the most current unit cost assumptions for the Regional System or actual costs, whichever is less. 2. Local Tier a. The local jurisdictions shall compare facilities in local fee programs against the Regional System and eliminate any overlap in its local fee program except where a recognized financing district has been established. b. If a recognized financing district is established, the local agency may credit that portion of the facility identified in both programs against the TUMF in accordance with the TUMF Administrative Plan. SECTION 5. Sections 16.83.050, 16.83.060 and 16.83.080 are hereby amended and restated as follows: 16.83.050 Reimbursements. Should the developer construct Regional System improvements in excess of the TUMF fee obligation, the developer may be reimbursed based on actual costs or the approved unit cost assumptions, whichever is less. Reimbursements shall be enacted through a three party agreement including the developer, WRCOG, and the City, contingent on funds being available. In all cases, however, reimbursements under such special agreements must coincide with construction of the transportation improvements as scheduled in the five-year Capital Improvements Program adopted annually by WRCOG. 16.83.060 Procedures for the levy, collection and disposition of fees. A. Authority of the Community Development Department. The Director of Community Development, or his/her designee, is hereby authorized to levy and collect the TUMF and make all determinations required by this chapter. B. Payment of the fees shall be as follows: 1. The fees shall be paid at the time a certificate of occupancy is issued for the Development Project or upon final inspection, whichever comes first (the "Payment Date"). However, this section should not be construed to prevent payment of the fees prior to issuance of a certificate of occupancy or final CITY COUNCIL ORDINANCE NO. 1212 PAGE 10 OF 12 inspection. Fees may be paid at the time application is made for a building permit, however, the fee payment shall be calculated based on the fee in effect at the Payment Date. If the amount of the fee has been increased between the time that the developer paid the fee and the Payment Date, the developer shall pay the difference of the Payment Date. The fees shall be calculated according to fee schedule as provided herein and the calculation methodology set forth in the Fee Calculation Handbook adopted July 14,2003, as amended from time to time. 2. The fees required to be paid shall be the fee amounts in effect at the time payment is due under this chapter, not the date the chapter is initially adopted. The City shall not enter into a development agreement which freezes future adjustments of the TUMF. 3. If all or part of any development project is sold prior to payment of the fee, the property shall continue to be subject to the requirement for payment of the fee, accordingly; the fees shall run with the land. 4. Fees shall not be waived. C. Disposition of Fees. All fees collected hereunder shall be transmitted to the Executive Director of WRCOG within thirty days for deposit, investment, accounting and expenditure in accordance with the provisions of this chapter and the Mitigation Fee Act. D. Appeals. Appeals shall be filed with WRCOG in accordance with the provisions of the TUMF Administrative Plan. Appealable issues shall be the application of the fee, application of credits, application of reimbursement, application of the legal action stay and application of exemption. E. Reports to WRCOG. The Community Development Director, or his/her designee, shall prepare and deliver to the Executive Director of WRCOG, periodic reports as will be established under Section 16.83.080 of this chapter. 16.83.080 Appointment of the TUMF administrator. WRCOG is hereby appointed as the Administrator of the Transportation Uniform Mitigation Fee Program. WRCOG is hereby authorized to receive all fees generated from the TUMF within the City, and to invest, account for and expend such fees in accordance with the provisions of this chapter and the Mitigation Fee Act. The CITY COUNCIL ORDINANCE NO. 1212 PAGE 11 OF 12 detailed administrative procedures concerning the implementation of this chapter shall be contained in the TUMF Administrative Plan adopted May 5, 2003 and as may be amended from time to time. Furthermore, the TUMF Administrator shall use the Fee Calculation Handbook adopted July 14,2003, as amended from time to time, for the purpose of calculating a developer's TUMF obligation. In addition to detailing the methodology for calculating all TUMF obligations of different categories of new development, the purpose of the Fee Calculation Handbook is to clarify for the TUMF Administrator, where necessary, the definition and calculation methodology for uses not clearly defined in the respective TUMF ordinances. WRCOG shall expend only that amount of the funds generated from the TUMF for staff support, audit, administrative expenses, and contract services that are necessary and reasonable to carry out its responsibilities and in no case shall the funds expended for salaries and benefits exceed one percent (1 %) of the annual net amount of revenue raised by the TUMF. The TUMF Administrative Plan further outlines the fiscal responsibilities and limitations of the Administrator. SECTION 6: If any provision, clause, sentence or paragraph of this Ordinance or the application thereof to any person or circumstance shall be held invalid, such invalidity shall not affect the other provisions of this Ordinance and are hereby declared to be severable. SECTION 7: This Ordinance shall take effect 60 days after the date of its final passage. The City Clerk shall certify as to adoption of this Ordinance and cause this Ordinance to be published and posted in the manner required by law. INTRODUCED AND APPROVED UPON FIRST READING this 27th day of March, 2007, upon the following roll call vote: AYES: COUNCILMEMBERS: BUCKLEY, HICKMAN, KELLEY, SCHIFFNER, MAGEE COUNCILMEMBERS: NONE NOES: ABSENT: COUNCILMEMBERS: NONE ABSTAIN: COUNCILMEMBERS: NONE CITY COUNCIL ORDINANCE NO. 1212 PAGE 12 OF 12 PASSED, APPROVED AND ADOPTED UPON SECOND READING this lOth day of April, 2007, upon the following roll call vote: AYES: COUNCILMEMBERS: BUCKLEY, HICKMAN, KELLEY, SCHIFFNER, MAGEE COUNCILMEMBERS: NONE NOES: ABSENT: COUNCILMEMBERS: NONE ABSTAIN: COUNCILMEMBERS: NO~v Rob . Magee, May City of Lake Elsinore ATTEST: " Q0clJL ~ MIChelle Soto, Interim City Clerk City of Lake Elsinore APPROVED A.S TO FORM~ / j ",r.. / (! / (' \... , i, ;..: / /, · I.' -~/ '/' '--1'J-, i' '! J i i V "', .' ... " " / , l if r L ~'( V!( (<-it iL I~(,{., VII, . B'arbara Zejd Leibold, City Attorney City of Lake Elsinore ORDINANCE NO. 1213 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, AMENDING ORDINANCE NO. 1124 TO MODIFY THE INDEX FOR CALCULATING ANNUAL ADJUSTMENTS TO THE DEVELOPMENT MITIGATION FEE FOR FUNDING THE WESTERN RIVERSIDE COUNTY MULTIPLE SPECIES HABITAT CONSERVATION PLAN AND CODIFYING SAID ORDINANCE AS CHAPTER 16.85 OF THE LAKE ELSINORE MUNICIPAL CODE WHEREAS, the City Council of the City of Lake Elsinore ("City") adopted Ordinance No. 1124, after second reading on July 27, 2004, (the "MSHCP Fee Ordinance") that established a citywide development mitigation fee for funding the preservation of natural ecosystems in accordance with the Western Riverside County Multiple Species Habitat Conservation Plan; and WHEREAS, the MSHCP Fee Ordinance, modeled after the Model Ordinance prepared and submitted by the Western Riverside County Regional Conservation Authority ("RCA"), provides for automatic annual fee adjustments at the beginning of each fiscal year based on the average percentage change over the previous calendar year set forth in the Construction Price Index for the Los Angeles metropolitan area; and WHEREAS, the RCA has requested that all Permittees, including the City of Lake Elsinore, modify their MSHCP Fee Ordinance to tie the automatic annual fee adjustments to the Consumer Price Index for "all urban consumers" in the Los Angeles-Anaheim-Riverside area as provided in the MSHCP implementing documents and to ensure that all Permitees are annually adjusting their MSCHP fees according to the same index; and WHEREAS, the City Council desires to modify the MSCHP Fee Ordinance pursuant to the RCA request and to codify Ordinance No. 1124, as amended, into the Lake Elsinore Municipal Code as Chapter 16.85. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE DOES ORDAIN AS FOLLOWS: SECTION 1. Section 9, "Automatic Annual Fee Adjustment," of the MSHCP Fee Ordinance is amended as follows: CITY COUNCIL ORDINANCE NO. 1213 PAGE20F4 Section 9. AUTOMATIC ANNUAL FEE ADJUSTMENT. The fee established by this Ordinance shall be revised annually by means of an automatic adjustment at the beginning of each fiscal year based on the average percentage change over the pervious calendar year set forth in the Consumer Price Index for "all urban consumers" in the Los Angeles-Anaheim-Riverside area, measured as of the month of December in the calendar year which ends in the previous fiscal year. The first fee adjustment shall not be made prior to a minimum of ten (10) months subsequent to the effective date of the ordinance codified in this Ordinance. The fee, as adjusted annually, shall be compiled by the County Executive Office and shall be included in an annual report to the Board of Supervisors pertaining to the accounting for the Western Riverside County Multiple Species Habitat Conservation Plan fee as required by Government Code Section 66006. SECTION 2. Section 4, "Local Development Mitigation Fee," of the MSCHP Ordinance sets forth the amount of the MSHCP Fees effective upon original adoption of the MSHCP Ordinance. In order to further clarify the effect of the interim adjustments and the modification of the adjustment factor, the City Council desires to modify the fee schedule set forth in said Section 4 as effective July 1,2007 as follows: Residential, density less than 8.0 dwelling units per acre - $1,860/du Residential, density between 8.1 and 14.0 dwelling units per acre - $1,191/du Residential, density greater than 14.1 dwelling units per acre - $968/du Commercial - $6,333/acre Industrial - $6,333/acre. SECTION 3. Ordinance No. 1124, as amended, shall be codified as Chapter 16.85 of the Lake Elsinore Municipal Code as fully set forth in Exhibit "A" attached hereto and incorporated herein by reference. SECTION 4. If any provision, clause, sentence or paragraph of this Ordinance or the application thereof to any person or circumstance shall be held CITY COUNCIL ORDINANCE NO. 1213 PAGE30F4 invalid, such invalidity shall not affect the other provisions of this Ordinance and are hereby declared to be severable. SECTION 5. This Ordinance shall take effect July 1, 2007. The City Clerk shall certify as to adoption of this Ordinance and cause this Ordinance to be published and posted in the manner required by law. INTRODUCED AND APPROVED UPON FIRST READING this 27th day of March 2007, upon the following roll call vote: AYES: NOES: COUNCILMEMBERS: BUCKLEY, HICKMAN, SCHIFFNERi, MAGEE COUNCILMEMBERS: KELLEY ABSENT: COUNCILMEMBERS: NONE ABSTAIN: COUNCILMEMBERS: NONE PASSED, APPROVED AND ADOPTED UPON SECOND READING this 10th day of April, 2007, upon the following roll call vote: AYES: NOES: COUNCILMEMBERS: BUCKLEY, HICKMAN, SCHIFFNER, MAGEE COUNCILMEMBERS: KELLEY ABSENT: COUNCILMEMBERS: NONE ABSTAIN: COUNCILMEMBERS: NONE/ U , ert E. Magee, City of Lake Elsin e CITY COUNCIL ORDINANCE NO. 1213 PAGE 4 OF 4 ATTEST: l J(J~CU ~ Michelle 80to, Interim City Clerk City of Lake Elsinore APPROVED A~ T<} F()RM: ;" .' J . it tl ,\' /', J ~/ " "iI', . _ . I .,''-.., .' Ilf / /r fll t~,U{ ~{(f' ) "z'?'l Ut> Birbara Zei(yteibord, City Attorney City of Lake Elsinore EXHIBIT "A" Chapter 16.85 LOCAL DEVELOPMENT MITIGATION FEE FOR FUNDING THE PRESERVATION OF NATURAL ECOSYSTEMS IN ACCORDANCE WITH THE WESTERN RIVERSIDE COUNTY MULTIPLE SPECIES HABITAT CONSERVATION PLAN Sections: 16.85.010 16.85.020 16.85.030 16.85.040 16.85.050 16.85.060 16.85.070 16.85.080 16.85.090 16.85.100 16.85.110 16.85.120 Title. Findings. Administrative Responsibility. Definitions. Local Development Mitigation Fee. Imposition ofthe Local Development Mitigation Fee. Payment of Local Development Mitigation Fee. Refunds. Accounting and Disbursement of Collected Local Development Mitigation Fees. Automatic Annual Fee Adjustment. Exemptions. Fee Credits and Waivers. 16.85.010. Title. This chapter shall be known as the "Western Riverside County Multiple Species Habitat Conservation Plan Fee Ordinance" and shall be added as Chapter 16.85 of the Lake Elsinore Municipal Code. (Ord. 1124 ~ 1,2004; Ord. _,2007) 16.85.020 Findings. The City Council finds and determines as follows: A. The preservation of vegetation communities and natural areas within the City and .m........ummumm. western Riverside County which~~pp()t:t.s'p~ci~s .c()vered bv the MSIIC]>. is.n.C?~.C?~~ary .t.C?P.I:ott:c~.~d..,...'" t~I~:~~,o~~~mmmmmmmmmmm.j promote the health, safety and welfare of all the citizens of the City by reducing the adverse direct, .... . . r~i;;l;U;;:~~~~~;;;;d~~;;;:~d;;;:k~;'l indirect and cumulative effects of urbanization and development and providing for permanent \,,,~:~~i.~~:.~.~~~~~~~.~,,~:.~,~~~,,~~,,~~~.:~.) I .conservati()n of habitat for speciesc()v.ered. ~Y. th~. M~I:I<;~......................................................< ....j ;~;r~,:::::~:~,~:"~:=::,,:~~~,::,,.) B. It is necessary to enact and implement certain development impact fees to ensure that ". ( Delete~:llr~~Smmmmmmmmmmmmmmj all new development within the City pays its fair share of the costs of acquiring and preserving vegetation communities and natural areas within the City and the region which are known to support ..1 Deleted: threatened, endangered or key J'la.nt.~~ .\Vil~lif~.spe.cie.s .c()y.crc.<J. bYJhe.M~HCl>'B BOO'" BBmBBB' B' 00..00000000..... l sensitive populations of C. A.,projJer filrtdillg ~o.urc.e .~C?p.ay. ~~. ~()~~. ~.SS()~~~t.~. ~i~ .l!litigati~gthe .dirt:ct, ill~irect. and cumulative impacts of development to the natural ecosystems within the City and the region, as identified in the MSHCP, is a development impact fee for residential, commercial, and industrial ~ _ ~ ~ Deleted: The ........................................................................1 - .... ..................................................................................................................j development. The amount ofthe fee is determined by the nature and extent ofthe impacts from the development to the identified natural ecosystems and or the relative cost of mitigating such impacts. p. ____The MSHCP ancl.~~_~_(l~~IS F_ee !{~P(?!~~_~_~_oI'Y of~~h_~<?!~_i_s~)tlfile inth_(l_~:ityq~rk's___----t.~I.~.=..I.... . Hm) office. provides ~ -b~sjs fal-tlle iInpositj~':l: _<?f ~~.veloI>In_~':l:t i_~I>ac:t Xee.s _~_~_ ':l:e'Y. _C?~~_struction~ _ _ _ _ _ _ _ _ _.:::: - - t.~I~: justifies. . H.... mm~ - ~ 1 Deleted: through preparation of the '1 i Nexus Fee Report, a copy of which is on l file in the City Clerk's Office. E. The use of the development impact fees to mitigate the impacts to the City's and the region's natural ecosystems is reasonably related to the type and extent of impacts caused by development within the City. F. The costs of funding the proper mitigation of natural ecosystems and biological resources impacted by development within the City and the region are apportioned relative to the type and extent of impacts caused by the development. G. The facts and evidence provided to the City establish that there is a reasonable relationship between the need for preserving the natural ecosystems in the City and the region, as defined in the MSHCP, and the direct, indirect and cumulative impacts to such natural ecosystems !!ngl.?j.QJQgi.9.!!!...r~~9]J.r~~~.created by the types of development on which the fee will be imposed, and that there is a reasonable relationship between the fee's use and the types of development for which the fee is charged. This reasonable relationship is described in more detail in the MSHCP and the Nexus Fee Report. H. The cost estimates for mitigating the impact of development on the City's and the region's natural ecosystem and biological resources, as set forth in the MSHCP, are reasonable and will not exceed the reasonably estimated total of these costs. I. The fee set forth herein does not reflect the entire cost ofthe lands which need to be acquired in order to implement the MSHCP and mitigate the impact caused by new development. Additional revenues will be required from other sources. The City Council finds that the benefit to each development project is greater than the amount of the fee to be paid by the project. J. The fees collected pursuant to this Ordinance shall be used to finance the acquisition of the natural ecosystems and certain improvements described or identified in the MSHCP. 16.85.030 Administrative Responsibility. The Community Development Director of the City shall be responsible for the administration of this Ordinance. Detailed administrative procedures concerning the implementation of this Ordinance may be established and set forth in a resolution adopted by the City Council. 16.85.040 meanings: Definitions. As used in this Ordinance, the following terms shall have the following "City" means the City of Lake Elsinore, California. "City Council" means the City Council of the City of Lake Elsinore, California. "Certificate of Occupancy" means a certificate of occupancy issued by the City in accordance with all applicable ordinances, regulations, and rules ofthe City and state law. "Credit" means a credit allowed pursuant to Section 16.85.12011 of this Ordinance, which may be applied against the development impact fee paid. "Development Project" or "Project" means any project undertaken for the purpose of development pursuant to the issuance of a building permit by the City pursuant to all applicable ordinances, regulations, and rules of the City and state law. "Final Inspection" means a final inspection of a project as defined by the building codes of the City. "Gross Acreage" means the total property area as shown on a land division map of record, or described through a recorded legal description of the property. This area shall be bounded by road right-of-way and/or legal property lines. "Local Development Mitigation Fee" or "Fee" means the development impact fee imposed pursuant to the provisions of this Ordinance. "Multiple Species Habitat Conservation Plan" or "MSHCP" means the Western Riverside County Multiple Species Habitat Conservation Plan, adopted by the City Council on January 13, 2004. "MSHCP Conservation Area" has the same meaning and intent as such term is defined and utilized in the MSHCP. "Ordinance" this Ordinance No. 1124 of the City of Lake Elsinore, California, adopting the MSHCP Local Development Mitigation Fee. "Project Area" means the area, measured in acres, from the adjacent road right-of-way line to the limits of project improvements. Project Area includes all project improvements and areas that are disturbed as a result of the project improvements on an owner's Gross Acreage, including all areas depicted on the forms required to be submitted to the City pursuant to this Ordinance and/or other applicable development ordinance or regulation of the City. Except as otherwise provided herein, the Project Area is the area upon which the project will be assessed the Local Development Mitigation Fee. "Residential Unit" means a building or portion thereof used by one family and containing but one kitchen, which unit is designed or occupied for residential purposes, including single-family, multiple-family dwellings, and mobile homes on a permanent foundations, but not including hotels and motels. "Revenue" or "Revenues" means any funds received by the City pursuant to the provisions of this Ordinance for the purpose of defraying all or a portion of the cost of acquiring and preserving vegetation communities and natural areas within the City and the region which are known to support threatened, endangered or key sensitive populations of plant and wildlife species. "Western Riverside County Regional Conservation Authority" means the governing body established pursuant to the MSHCP that is delegated the authority to oversee and implement the provisions of the MSHCP. 16.85.050 Local Development Mitigation Fee. A. To assist in providing Revenue to acquire and preserve vegetation communities and natural areas within the City and western Riverside County which are known to support threatened, endangered or key sensitive populations of plant and wildlife species, a Local Development Mitigation Fee shall be paid for each Development Project or portion thereof to be constructed within the City. The following fee shall be paid for each Development Project to be constructed within the City. The fees are calculated using an Equivalent Benefit Unit methodology: 1. unit 2. dwelling unit 3. dwelling unit 4. 5. Residential, density less than 8.0 dwelling units per acre - $1,860 per dwelling Residential, density between 8.1 and 14.0 dwelling units per acre - $1,191 per Residential, density greater than 14.1 dwelling units per acre - $968 per Commercial - $6,333 per acre Industrial - $6,333 per acre B. The amount of the Local Development Mitigation Fee shall be calculated on the basis of the acreage of the Project Area, in accordance with the following: 1. The Project Area shall be determined by City staff based on the subdivision map, plot plan, and other information submitted to or required by the City. 2. An applicant may elect, at his or her own expense, to have a Project Area dimensioned, calculated, and certified by a registered civil engineer or licensed land surveyor. The engineer or land surveyor shall prepare a wet-stamped letter of certification of the Project Area dimensions and a plot plan exhibit thereto that clearly delineates the Project Area. Upon receipt of the letter of certification and plot plan exhibit, the City shall calculate the Local Development Mitigation Fee required to be paid based on the certified Project Area. 3. Where construction or other improvements on Project Area are prohibited due to legal restrictions on the Project Area, such as Federal Emergency Management Agency designated floodways or areas legally required to remain in their natural state, that portion ofthe Project Area so restricted shall be excluded for the purpose of calculating the Local Development Mitigation Fee. 16.85.060 Imposition of the Local Development Mitigation Fee. Notwithstanding any other provision of the City's Municipal Code, no permit shall be issued for any Development Project except upon the condition that the Local Development Mitigation Fee applicable to such Development Project has been paid. 16.85.070 Payment of Local Development Mitigation Fee. A. The Local Development Mitigation Fee shall be paid in full in accordance with applicable law. B. The Local Development Mitigation Fee shall be assessed one time per lot or parcel, except when additional construction or improvement on the lot or parcel results in the disturbance of additional area. C. The Local Development Mitigation Fee required to be paid under this Ordinance shall be the fee in effect at the time of payment. D. Notwithstanding anything in the City's Municipal Code, or any other written documentation to the contrary, the Local Development Mitigation Fee shall be paid whether or not the Development Project is subject to conditions of approval by the City imposing the requirement to pay the fee. E. If all or part of the Development Project is sold prior to payment of the Local Development Mitigation Fee, the Project shall continue to be subject to the requirement to pay the fee as provided herein. 16.85.080 Refunds. There shall be no refund of all or part of any Local Development Mitigation Fee paid under this Ordinance except in cases of overpayment or miscalculation of the applicable fee. Only in cases of overpayment or miscalculation ofthe fee will the person or entity that paid the Local Development Mitigation Fee be entitled to a refund. 16.85.090 Accounting and Disbursement of Collected Local Development Mitigation Fees. A. All fees paid pursuant to this Ordinance shall be deposited, invested, accounted for, and expended in accordance with Section 66006 of the Government Code and all other applicable provisions oflaw. B. Subject to the provisions of this section, all fees collected pursuant to this Ordinance shall be remitted to the Western Riverside County Regional Conservation Authority at least quarterly, and will be expended solely for the purpose of acquiring and preserving vegetation communities and natural areas within the City and the region which~~Pl'_<?!!_~Ee_c!~_~ _C~)~_\?~~_~ _~n_ ~he_ _. _ _ _- - - {D;;ieted: are known Io------J J\.1"SllC~.P in accordance with the provisions of the MSHCP. -- ~-f Deleted: threatened, ~dangeredorkey "1 l..'....~'.!~~.....~~!'.~?.~~'...~r...~~~~..~~..~~I.ir.....J C. The City may recover the costs of administering the provisions of this Ordinance using the Revenues generated by the fees, in an amount and subject to the rules and regulations established by the Western Riverside County Regional Conservation Authority. 16.85.100 Automatic Annual Fee Adjustment. The fee established by this ordinance shall be revised annually by means of an automatic adjustment at the beginning of each fiscal year based on the average percentage change over the previous calendar year set forth in the Consumer Price Index for "all urban consumers" in the Los Angeles-Anaheim-Riverside area, measured as of the month of December in the calendar year which ends in the previous fiscal year. The first fee adjustment shall not be made prior to a minimum often (10) months subsequent to the effective date of the ordinance codified in this Ordinance. The fee, as adjusted annually, shall be compiled by the County Executive Office and shall be included in an annual report to the Board of Supervisors pertaining to the accounting for the Western Riverside Multiple Species Habitat Conservation Plan fee as required by Government Code Section 66006. 16.85.110 Exemptions. The following types of construction shall be exempt from the provisions of this Ordinance: A. Reconstruction or improvements that are damaged or destroyed by fire or other natural causes. B. Rehabilitation, remodeling, or minor additions to an existing Development Project. C. Secondary residential units, constructed on developed residential property and meeting all state and City requirements for such units. D. Existing improvements that are converted from an existing permitted use to a different permitted use, provided that no additional area of the property is disturbed as a result of such conversion. E. Development on a Project Area that is currently or has been previously improved. F. Guest houses or dwellings, as permitted by law. 16.85.120 Fee Credits and Waivers. Any Local Development Mitigation Fee credit that may be applicable to a Development Project, or any partial or full waiver of a Local Development Mitigation Fee that may be applicable to a Development Project, shall be determined by the City in cooperation with the Western Riverside County Regional Conservation Authority, which shall have an auditing role in this process. ORDINANCE NO. 1214 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE AMENDING AND RESTATING CHAPTER 8.52 OF THE LAKE ELSINORE MUNICIPAL CODE REGARDING FIREWORKS WHEREAS, Chapter 8.52 of the Lake Elsinore Municipal Code regulates the use of fireworks within the City of Lake Elsinore; and WHEREAS, in order to prevent personal injury and damage to property, along with deterring violations of the City's fireworks prohibition, the City Council has determined to amend and restate Chapter 8.52. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, ORDAINS AS FOLLOWS: SECTION 1. That Chapter 8.52 of the Lake Elsinore Municipal Code is hereby amended and restated as follows: CHAPTER 8.52 FIREWORKS 8.52.010 Statement of purpose and intent. The City Council of the City of Lake Elsinore has determined that the provisions contained in this chapter are necessary for the immediate preservation of the public peace, health, or safety within the incorporated areas of the City of Lake Elsinore. Illegal fireworks are a serious concern in the City for several reasons. First, fireworks are sold to children. The U.S. Fire Administration has recently determined that children under the age of 15 suffered 45% of all injuries from fireworks. Second, fireworks are often stored without safety precautions in residential neighborhoods. Third, fireworks can be disassembled for the explosive powder they contain to make bombs and other explosive devices. Fourth and finally, fireworks often come from countries where safety regulations for making fireworks are not as stringent as those for fireworks manufactured in the United States. Accordingly, the adoption of this chapter regulating the personal use and sale of illegal fireworks in the City are a necessary to protect the public peace, health and safety of the citizens of the City of Lake Elsinore. CITY COUNCIL ORDINANCE NO. 1214 PAGE20F8 8.52.020 Definitions. As used in this Chapter, the following terms shall have the meanings set forth herein: "Agricultural and wildlife fireworks" means fireworks designed and intended by the manufacturer to be used to prevent damage to crops or unwanted occupancy of areas by animals or birds through the employment of sound or light, or both. "Dangerous fireworks" has the same meaning ascribed to it under Section 12505 of the California Health and Safety Code and includes all of the following: 1. Any fireworks which contain any of the following: a. Arsenic sulfide, arsenates, or arsenites, b. Boron, c. Chlorates, except: i. In colored smoke mixture in which an equal or greater amount of sodium bicarbonate is included, ii. In caps and party poppers, iii. In those small items (such as ground spinners) wherein the total powder content does not exceed four grams of which not greater than fifteen (15) percent (or six hundred (600) milligrams) is potassium, sodium, or barium chlorate, d. Gallates or gallic acid, e. Magnesium (magnesium-aluminum alloys, called magnalium, are permitted), f. Mercury salts, g. Phosphorus (red or white except that red phosphorus is permissible in caps and party poppers), h. Picrates or picric acid, i. Thiocyanates, CITY COUNCIL ORDINANCE NO. 1214 PAGE30F8 j. Titanium, except in particle size greater than 100-mesh, k. Zirconium; 2. Firecrackers; 3. Skyrockets and rockets, including all devices which employ any combustible or explosive material and which rise in the air during discharge; 4. Roman candles, including all devices which discharge balls of fire into the air; 5. Chasers, including all devices which dart or travel about the surface of the ground during discharge; 6. Sparklers more than ten (10) inches in length or one-fourth of one inch in diameter; 7. All fireworks designed and intended by the manufacturer to create the element of surprise upon the user. These items include, but are not limited to, auto- foolers, cigarette loads, exploding golf balls, and trick matches; 8. Fireworks known as devil-on-the-walk, or any other firework which explodes through means of friction, unless otherwise classified by the State Fire Marshal pursuant to this chapter; 9. Torpedoes of all kinds which explode on impact; 10. Fireworks kits; 11. Such other fireworks examined and tested by the State Fire Marshal and determined by him or her, with the advice of the State Board of Fire Services, to possess characteristics of design or construction which make such fireworks unsafe for use by any person not specially qualified or trained in the use of fireworks. "Exempt fireworks" has the same meaning ascribed to it under Section 12508 of the California Health and Safety Code and means any special item containing pyrotechnic compositions which the State Fire Marshall, with the advice of the State Fire Advisory Board, has investigated and determined to be CITY COUNCIL ORDINANCE NO. 1214 PAGE 4 OF 8 limited to industrial, commercial, agricultural use, or religious ceremonies when authorized by a permit granted by the authority having jurisdiction. "Fire chief' or "chief' means the fire chief of the City of Lake Elsinore or his or her authorized representatives. "Fireworks" has the same meaning ascribed to it under Section 12511 of the California Health and Safety Code and means any device containing chemical elements and chemical compounds capable of burning independently of the oxygen of the atmosphere and producing audible, visual, mechanical, or thermal effects which are useful as pyrotechnic devices or for entertainment. The term "fireworks" includes, but is not limited to, devices designated by the manufacturer as fireworks, torpedoes, skyrockets, roman candles, model rockets, rockets, Daygo bombs, sparklers, chasers, fountains, smoke sparks, aerial bombs and fireworks kits. "Fireworks kits" has the same meaning ascribed to it under Section 12512 of the California Health and Safety Code and means any assembly of materials or explosive substances, which is designed and intended by the seller to be assembled by the person receiving such material or explosive substance and when so assembled, would come within the definition of "fireworks." "Public display of fireworks" means an entertainment feature where the public or a private group is admitted or permitted to view the display or discharge of dangerous fireworks. "Pyrotechnic operator" means any licensed pyrotechnic operator who, by examination, experience, and training, has demonstrated the required skill and ability in the use and discharge of fireworks as authorized by the license granted. "Pyrotechnic special effects material" means a low explosive material, other than detonating cord, commonly used in motion picture, television, theatrical or group entertainment production for which a permit from the chief is required for use or storage. "Safe and sane fireworks" has the same meaning ascribed to it under Section 12529 of the California Health and Safety Code and means any fireworks which do not come within the definition of "dangerous fireworks" or "exempt fireworks. " CITY COUNCIL ORDINANCE NO. 1214 PAGE 5 OF 8 "Sheriff' means the acting Police Chief for the City of Lake Elsinore, or his or her authorized representatives. 8.52.030 Prohibition. A. General. No person shall have in his or her possession, or keep, store, use, shoot, discharge, set off, ignite, explode, manufacture, sell, offer to sell, give or transport any fireworks, dangerous fireworks, or safe and sane fireworks, except for use as agricultural and wildlife fireworks or for use in a public display of fireworks pursuant to a permit obtained under the provisions of Sections 12640- 12654 of the California Health and Safety Code, the Uniform Fire Code and this chapter. Any property owner or person in control of property who allows a person to sell, use, discharge or possess fireworks on the property owned by such person or under such person's control shall be in violation of this section, irrespective of such person's intent, knowledge or negligence, said violation hereby being expressly declared a strict liability offense. B. Manufacturing Prohibited. The manufacturing of fireworks, dangerous fireworks, or safe and sane fireworks is prohibited except under special permits as required by local and state regulations by the fire chief and the sheriff. C. Pyrotechnic Special Effects Material. A permit is required to manufacture, compound, store or use pyrotechnic special effects material. Permit application shall be made to the fire chief and the sheriff. A permit shall be granted only to a State Fire Marshall licensed pyrotechnic operator. 8.52.040 Displays. A. General. Permits are required to conduct a public display of fireworks. Permit application shall be made to the fire chief and the sheriff not less than fourteen (14) days prior to the scheduled date of the display. The permit application shall include a diagram of the grounds on which the display is to be held showing the point at which the fireworks are to be discharged; the location of buildings, highways and other lines of communication; the lines behind which the audience will be restrained; and the location of nearby trees, telegraph or telephone lines and other overhead obstructions. At the time of permit application, the fire chief shall be consulted regarding the requirements for standby fire apparatus. B. Under Supervision of Pyrotechnic Operator. Public display of fireworks operations shall be under the direct supervision of a pyrotechnic operator. The CITY COUNCIL ORDINANCE NO. 1214 PAGE60F8 pyrotechnic operator shall be responsible for all aspects of a display related to pyrotechnics. C. Bond Required. The permittee shall furnish a bond or certificate of insurance in an amount deemed adequate by the fire chief and the sheriff for the payment of damages which could be caused either to a person or persons or to property by reason of the permitted display and arising from acts of the permittee, agents, employees or subcontractors. 8.52.050 Exception. Nothing in this chapter shall be construed to prohibit the use of fireworks by railroads or other transportation agencies for signal purposes or illumination, or the sale or use of blank cartridges for a show or theater, or for signal or ceremonial purposes in athletics or sports or for use by military organizations. 8.52.060 Seizure and disposal. A. It shall be the duty of the fire chief and his or her authorized representatives and the sheriff and his or her authorized representatives to enforce the provisions of this chapter. B. The fire chief and his or her authorized representatives and the sheriff and his or her authorized representatives shall have the authority to seize, take, and remove any fireworks, dangerous fireworks, and safe and sane fireworks. The fire chief and his or her authorized representative and the sheriff and his or her authorized representative may charge any person whose fireworks are seized pursuant to this section, a reasonable amount which is sufficient to cover the cost of transporting, storing, handling, and disposing of the seized fireworks. C. The additional remedies and procedures for violations of this chapter and for recovery of costs related to enforcement provided for in Lake Elsinore Municipal Code are incorporated in this chapter by reference. 8.52.070 Penalties. A. Any person who violates any prOVISIon of this chapter is guilty of a misdemeanor, and upon conviction shall be punished by a fine of not less than five hundred dollars ($500.00) and not more than one thousand dollars ($1,000.00), or by imprisonment in the county jail for a term not exceeding one year, or by both such fine and imprisonment. CITY COUNCIL ORDINANCE NO. 1214 PAGE 7 OF 8 B. Upon any second or subsequent conviction of the offense, the person shall be punished by the penalties of a fine of one thousand dollars ($1,000.00) and by imprisonment in the county jail for one year. C. A person is guilty of a separate offense for each and every day or portion thereof during which he or she commits, continues, or permits a violation of this chapter. D. Nothing in this chapter shall be intended to limit any of the penalties provided for under the California Health and Safety Code or Penal Code with regard to the sale, use, possession, delivery, and/or transportation of dangerous fireworks. E. In addition to the above penalties, an administrative citation may be issued in accordance with Chapter 1.20 of the Lake Elsinore Municipal Code. Violations of this Chapter are subject to a fine of one thousand dollars ($1,000.00), unless otherwise provided by resolution. SECTION 2. If any provision, clause, sentence or paragraph of this Ordinance or the application thereof to any person or circumstance shall be held invalid, such invalidity shall not affect the other provisions of this Ordinance and are hereby declared to be severable. SECTION 3. This Ordinance shall take effect thirty (30) days after the date of its final passage. The City Clerk shall certify as to adoption of this Ordinance and cause this Ordinance to be published and posted in the manner required by law. INTRODUCED AND APPROVED UPON FIRST READING this 27th day of March 2007, upon the following roll call vote: AYES: NOES: COUNCILMEMBERS: BUCKLEY, HICKMAN, KELLEY, SCHIFFNER, MAGEE COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: NONE ABSTAIN: COUNCILMEMBERS: NONE CITY COUNCIL ORDINANCE NO. 1214 PAGE 8 OF 8 PASSED, APPROVED AND ADOPTED UPON SECOND READING this 10th day of April, 2007, upon the following roll call vote: AYES: NOES: COUNCILMEMBERS: BUCKLEY, HICKMAN, KELLEY, SCHIFFNER, MAGEE COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: NONE ABSTAIN: COUNCILMEMBER~ ~ Robert E. Magee, M or City of Lake Elsino e ATTEST: ~t ?1Ju Michelle Soto, Interim City Clerk City of Lake Elsinore / ORDINANCE NO. 1215 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE AMENDING AND RESTATING CHAPTER 9.52 OF THE LAKE ELSINORE MUNICIPAL CODE REGARDING GRAFFITI WHEREAS, Chapter 9.52 of the Lake Elsinore Municipal Code addresses the regulation of graffiti and graffiti implements within the City of Lake Elsinore; and WHEREAS, in order to better effectuate the prevention of graffiti and abate graffiti within the City, the City Council has determined to amend and restate Chapter 9.52. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, ORDAINS AS FOLLOWS: SECTION 1. That Chapter 9.52 of the Lake Elsinore Municipal Code is hereby amended and restated as follows: CHAPTER 9.52 GRAFFITI PREVENTION AND ABATEMENT 9.52.010 Purpose. The purpose of this Chapter is to promote the public health, safety and welfare of residents and property within the City of Lake Elsinore by providing a program for the prevention and removal of graffiti. The increase of graffiti on both public and private buildings, structures and places is creating a condition of blight within the City which results in a deterioration of property and business values for surrounding properties, all to the detriment of the City. The City Council finds and determines that graffiti is obnoxious and a public nuisance which must be abated so as to avoid the detrimental impact of such graffiti on the City, and to prevent the further spread of graffiti. 9.52.020 Definitions. As used in this Chapter, the following terms shall have the meanings set forth herein: "Abate" or "abatement" means the elimination, removal or termination of graffiti from public or private property with the City's boundaries. CITY COUNCIL ORDINANCE NO. 1215 PAGE 2 OF 10 "Aerosol paint container" means any container, regardless of the material from which it is made, which is adapted or made for the purpose of spraying paint or other substances capable of defacing property. "City Manager" means the City Manager of the City of Lake Elsinore, or his/her designee. "Cost of removal" means any cost incurred by the City for removal, elimination, or termination of graffiti from public or private property. "Deface," "defaces" or "defacing" means intentionally altering the physical shape or physical appearance of property by inscription, words, figures, signs, or design without prior written permission of the owner. "Expenses of abatement" means all costs incurred by the City related to abatement of graffiti conditions, including without limitation, the costs of removal, court costs, attorneys' fees, administrative costs, and any law enforcement costs relating to the identification and/or apprehension of a person who defaces property with graffiti or who fails to remove graffiti from property after being ordered to do so. "Graffiti" means any inscription, word, figure, or design that is marked, etched, scratched, drawn, or painted on any surface, without the express permission of the owner's of such surface, regardless of the nature of the material of which the surface is composed. "Graffiti implement" means any item capable of marking a surface to create graffiti including, but not limited to, aerosol paint containers, dye containers, paint sticks, felt-tip markers or marking pens, marking instruments, drill bits, grinding stones, scribers, glass cutters or etching tools or other instruments capable of scarring glass, metal, concrete or wood. "Owner" means any person or entity that is the owner of real or personal property that has been defaced, or who has primary responsibility for control over the property, or who has primary responsibility for maintenance and repair of the property, and shall include any person owning, leasing, renting, occupying, managing, or having charge of any property or structure. "Person(s)" means a natural person(s). CITY COUNCIL ORDINANCE NO. 1215 PAGE 3 OF 10 "Public view" means any public or private area that is accessed from a public roadway, sidewalk or common area and is open to view by persons from such public roadway, sidewalk or common area. "Responsible adult" means a parent, legal guardian, or other person over the age of eighteen years who is charged with legal responsibility and/or supervision of a minor. 9.52.030 Prohibition. No person shall place graffiti upon any public or privately owned permanent structure or personal property located on publicly or privately owned real property. 9.52.040 Accessibility of aerosol paint containers; sale of graffiti implements; penalties. A. Access. No person or business engaged in a commercial enterprise shall display for sale, trade or exchange to the public any aerosol paint containers except in an area from which access by the public is securely precluded without employee assistance. Acceptable methods for displaying aerosol paint containers for sale shall be by containment in: (1) a completely enclosed cabinet or other storage device which shall, at all times except during access by authorized representatives, remain securely locked; or (2) an enclosed area behind a sales or service counter from which the public is precluded from entry. Nothing in this Chapter shall relieve such person or business entity from complying at all times with the requirements of California Penal Code Section 594.1 (c) by posting signs as described therein. B. Storage Requirements. No person or business engaged in the business of selling, providing or trading aerosol paint containers shall store such containers in an area accessible to the public. c. Any person or business engaged in the retail sale of aerosol paint containers must display at a conspicuous location a legible sign measuring not less than twelve inches by twelve inches with letters at least one-half inch in height which states: It is unlawful for any person to sell or give to any individual under the age of eighteen years any implement or other device capable of being used to deface property. Any person who maliciously defaces CITY COUNCIL ORDINANCE NO. 1215 PAGE 4 OF 10 real property is guilty of vandalism which is punishable by a fine, imprisonment, or both. D. It shall be unlawful for any person or business to sell, exchange, give, or loan, or cause or permit to be sold, exchanged, given, or loaned, any graffiti implements to a minor, unless such minor is in the presence of the minor's responsible adult. E. It shall be unlawful for a minor to purchase or otherwise obtain any graffiti implements unless such minor is in the presence of the minor's responsible adult. F. Any person or business offering aerosol paint containers for sale to the public shall keep a log of the name, address and driver's license number of any person purchasing three or more aerosol paint containers. G. Any business violating this Section 9.52.040 shall be subject to suspension, revocation or non-renewal of its City business license. H. Any person or business violating any provision of this Section 9.52.040, or failing to comply with any of its requirements, shall be subject the Administrative Citation Procedures set forth in Chapter 1.20 and shall be subject to a fine not to exceed Twenty-five Thousand Dollars ($25,000.00) 9.52.050 Possession prohibited. A. It shall be unlawful for any person to possess any graffiti implement for the purpose of defacing any public or private property, without the express consent of the owner of such property. B. It shall be unlawful for a minor to possess any graffiti implement on any public highway, street, alley, or way, or in any automobile, vehicle or other conveyance, or while in any public park, playground or other public facility. C. The forgoing provisions shall not apply to minors that are transporting or using graffiti implements for lawful purposes while under the supervision of the minor's responsible adult, instructor or employer. CITY COUNCIL ORDINANCE NO. 1215 PAGE 5 OF 10 9.52.060 Public Nuisance; removal of graffiti; standards for removal. A. In the event the owner of private property upon which graffiti has been placed declines to consent to removal by the City as provided herein, or fails to remove the graffiti within three (3) days after service of a notice to remove the graffiti, the owner shall be subject to the administrative citation process set forth in Chapter 1.20 of the Lake Elsinore Municipal Code. B. The City Council does hereby find that graffiti is a public nuisance. In the event the owner of private property upon which graffiti has been placed declines to consent to removal by the City as provided herein, or fails to remove the graffiti within three (3) days after service of a notice to remove graffiti, the affected property shall be subject to the nuisance abatement process set forth in Chapter 8.18 of the Lake Elsinore Municipal Code. C. Whenever the City Manager determines that graffiti is located within the public view, the City Manager is authorized to seek the consent of the owner to cause the graffiti to be removed by City forces or private contract. Where the graffiti is on a private property, unless summary abatement is authorized under Section 9.52.070, entry onto the private property for removal of the graffiti may be authorized by securing the consent of the owner, or upon issuance of an abatement warrant by a court of competent jurisdiction under California Code of Civil Procedure Section 1822.50, et seq. D. Graffiti shall be removed or completely covered in a manner that renders it inconspicuous. When graffiti is painted out, the color used to paint it out shall match the original color of the surface, or the entire surface shall be repainted with a new color that is aesthetically compatible with existing colors and architecture. The removal shall not leave shadows and shall not follow the pattern of the graffiti such that letters or similar shapes remain apparent on the surface after graffiti markings have been removed. If the area is heavily covered with graffiti, the entire surface shall be repainted. E. The City Manager may waive the costs associated with removing the graffiti provided the owner agrees to assign his/her victim's rights to the City so the City may seek restitution in accordance with Section 9.52.110 and/or California Penal Code Section 594. CITY COUNCIL ORDINANCE NO. 1215 PAGE 6 OF 10 9.52.070 Summary abatement by City. The Police Chief is hereby authorized to summarily abate gang-related graffiti. The abatement may be undertaken by City staff, or by outside contractors. Gang-related graffiti shall be defined as graffiti that is placed on private or public property by a person reasonably believed by the City's Police Department or other local law enforcement agency to be a member of, or affiliated with a criminal street gang, as that term is defined in California Penal Code Section 186.22. 9.52.080 Measures to ease removal or prevent graffiti. A. Land Use Entitlement Conditions. In approving subdivision maps, conditional use permits, variances, building permits, or other similar land use entitlement or development or design applications, the City may impose one or all of the following conditions, or other similar or related conditions: (1) Use of anti-graffiti materials on surfaces exposed to public view of a type and nature that is acceptable to the City Manager. (2) Use of landscaping to screen or provide a barrier to surfaces that may be prone to graffiti. (3) Right of access by City to remove graffiti. (4) Applicants, permittees, and all successors in interest shall provide City with sufficient matching paint and/or anti-graffiti material on demand for use in painting over or removal of graffiti. (5) Applicants, permittees, and all persons applying for subdivision maps shall, as part of any conditions, covenants and restrictions, covenant that the owners of the lots shall immediately remove any graffiti. B. Encroachment Permit Conditions. All encroachment permits issued by the City may, among other things, be conditioned on the following: (1) Use of anti-graffiti materials on surfaces exposed to public view of a type and nature that is acceptable to the City Manager. (2) Use of landscaping to screen or provide a barrier to the encroaching object. CITY COUNCIL ORDINANCE NO. 1215 PAGE 7 OF 10 (3) The right of the City to remove the graffiti or to paint the encroaching object or structure. (4) Permittee shall provide City with sufficient matching paint and/or anti- graffiti material on demand for use in painting over or removal of graffiti on the encroaching object or structure. (5) Permittee shall immediately remove all graffiti. 9.52.090 Reward. A. Pursuant to California Government Code Section 36069.5, the City offers a reward of one thousand dollars ($1,000) per incident for information leading to the arrest and conviction of any person for violation of California Penal Code Section 594 within the City. B. In the event of multiple contributors of information leading to such arrest and conviction, the City may divide the reward equally among the contributors. C. A claim for reward under this section shall be filed with the City Clerk. The City Manager shall verify the accuracy of all claims and report to the City Council. A claim shall be awarded only after City Council approval of the City Manager's report. Each claim shall: (I) Specifically identify the date, location and kind of property damaged or destroyed; (2) Identify by name the person who was convicted; and (3) Identify the court rendering the conviction and the date of the conviction. D. The City Manager shall establish a dedicated "graffiti hotline" for citizens to utilize to report graffiti. Such graffiti hotline number shall be publicized in appropriate City publications directed at both City employees and the public. 9.52.100 Community education; coordination with utility providers. A. The City Manager, in coordination with the school district, CIVIC organizations and the public may conduct regular programs to provide community CITY COUNCIL ORDINANCE NO. 1215 PAGE 8 OF 10 education regarding the prevention of graffiti, available rewards, and the telephone number of the graffiti hotline. B. The City Manager shall coordinate with local providers of public utilities to expeditiously remove graffiti from public utility boxes, poles and other physical utility structures. 9.52.110 Penalties and restitution. A. Except as provided in Section 9.52.040, any person violating any provision of this Chapter, or failing to comply with any of its requirements, shall be deemed guilty of a misdemeanor and upon conviction thereof shall be punished by a fine not exceeding One Thousand Dollars ($1,000.00) or by imprisonment not exceeding six months, or by both such fine and imprisonment. Each such person or business shall be deemed guilty of a separate offense for each and every day or any portion thereof during which any violation of this Chapter is committed, continued, or permitted by such person or business and shall be deemed punishable therefore as provided in this Chapter. B. Notwithstanding the penalties set forth in Section 9.52.11 O(A), any person who defaces property with graffiti implement is guilty of vandalism, pursuant to Section 594 of the California Penal Code, and upon conviction thereof shall be punishable by imprisonment in the state prison or in a county jail for a period not to exceed one (1) year or by a fine of Five Thousand Dollars ($5,000.00), but no more than Fifty Thousand Dollars ($50,000.00) depending upon the severity and the amount of the defacement or by both such fine and imprisonment. C. Any person violating any provision of this Chapter, or failing to comply with any of its requirements, shall be subject the Administrative Citation Procedures set forth in Chapter 1.20 and shall be subject to a fine not to exceed Twenty-five Thousand Dollars ($25,000.00). D. Additional Penalties Available. Whenever deemed appropriate, it is the City's intent to petition a sentencing court to impose the following additional penalties upon conviction: (1) Performance of a minimum of 48 hours of community service not to exceed 200 hours over a period up to 180 days. Community service includes graffiti removal service. CITY COUNCIL ORDINANCE NO. 1215 PAGE 9 OF 10 (2) That the defendant personally clean up, repair, or replace the damaged property consistent with Section 9.52.060. Or that the defendant, or responsible adult, keep the damaged property or other specified property in the City free of graffiti for up to one year. This clean-up, repair, or replacement shall be at the defendant's expense, or at the expense of the responsible adult of the defendant if the defendant is a minor. (3) For each conviction of a person aged 13 years or older, the City may petition the court to suspend existing driving privileges or delay the issuance of driving privileges for up to three (3) years in accordance with California Vehicle Code Section 13202.6. E. Restitution. The City or any owner who suffers property damage and/or monetary loss as a result of having to remove graffiti may seek restitution for all expenses of abatement. Restitution may be pursued by the City and/or the owner in a separate civil action or as part of a criminal proceeding against the perpetrator. F. Parental Responsibilities. Pursuant to California Civil Code Section 1 714.1 (b), where graffiti is applied by a minor, the responsible adult of the minor shall be jointly and severally liable for the payment of civil damages resulting from the minor's misconduct in an amount not to exceed Twenty-five Thousand Dollars ($25,000.00). SECTION 2. If any prOVISIOn, clause, sentence or paragraph of this Ordinance or the application thereof to any person or circumstance shall be held invalid, such invalidity shall not affect the other provisions of this Ordinance and are hereby declared to be severable. SECTION 3. This Ordinance shall take effect thirty (30) days after the date of its final passage. The City Clerk shall certify as to adoption of this Ordinance and cause this Ordinance to be published and posted in the manner required by law. CITY COUNCIL ORDINANCE NO. 1215 PAGE 10 OF 10 INTRODUCED AND APPROVED UPON FIRST READING this 27th day of March 2007, upon the following roll call vote: AYES: NOES: COUNCILMEMBERS: BUCKLEY, HICKMAN, KELLEY, SCHIFFNER, MAGEE COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: NONE ABSTAIN: COUNCILMEMBERS: NONE PASSED, APPROVED AND ADOPTED UPON SECOND READING this 10th day of April, 2007, upon the following roll call vote: AYES: NOES: COUNCILMEMBERS: BUCKLEY, HICKMAN, KELLEY, SCHIFFNER, MAGEE COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: NONE ABSTAIN: COUNCILMEMBERS: NON~, Robert E. Magee, ayor City of Lake Elsinore ATTEST: ~fk1Jl ~~ Michelle Soto, Interim City Clerk City of Lake Elsinore ORDINANCE NO. 1216 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, AMENDING SECTION 16.83.040 OF THE LAKE ELSINORE MUNICIPAL CODE REGARDING THE TRANSPORTATION UNIFORM MITIGATION FEE PROGRAM WHEREAS, the City of Lake Elsinore ("City") is a member agency of the Western Riverside Council of Governments ("WRCOG"), a joint powers agency comprised of the County of Riverside and fourteen cities located in Western Riverside County; and WHEREAS, the member agencies of WRCOG recognized that there was insufficient funding to address the impacts of new development on the regional system of highways and arterials in Western Riverside County (the "Regional System"); and WHEREAS, in order to address this shortfall, the member agencies formulated a plan whereby a transportation mitigation fee would be assessed on new development and would be used to fund the necessary improvements for the Regional System; and WHEREAS, in furtherance of this plan, the WRCOG Executive Committee adopted the "Western Riverside County Transportation Uniform Fee Nexus Study", dated October 18,2002 (the "2002 Nexus Study"); and WHEREAS, based on the 2002 Nexus Study, the City adopted Ordinance 1096 establishing Chapter 16.83 of the Lake Elsinore Municipal Code pursuant to California Government Code sections 66000 et seq. authorizing the City to impose the Transportation Uniform Mitigation Fee ("TUMF") upon new development; and WHEREAS, on February 6, 2006, the WRCOG Executive Committee adopted the "Western Riverside Transportation Fee Nexus Study 2005 Update" (the "Nexus Study") which served as a basis for the City Council to adopt an amendment to Chapter 16.83 in 2006; and WHEREAS, Section 16.83.040, Part C of the Lake Elsinore Municipal Code authorizes periodic review and adjustment to the applicable TUMF in accordance with any adjustments made by the WRCOG Executive Committee; and CITY COUNCIL ORDINANCE NO. 1216 PAGE20F5 WHEREAS, on February 5, 2007, the WRCOG Executive Committee recommended that member agencies adjust their applicable TUMF to reflect increases in the construction cost index; and WHEREAS, the increase of the construction cost index reflects the increased cost of construction of the public facilities authorized by the Nexus Study; and WHEREAS, the adjusted fees collected pursuant to this Ordinance shall be used to finance the public facilities described or identified in the Nexus Study; and WHEREAS, this levying of development fees has been reviewed by the City Council and staff in accordance with the California Environmental Quality Act ("CEQA") and the CEQA Guidelines and it has been determined that the adoption of this ordinance is exempt from CEQA pursuant to Section 15061(b)(3) of the CEQA Guidelines. THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE DOES ORDAIN AS FOLLOWS: SECTION 1. That 16.83.040, Part A, of the Lake Elsinore Municipal Code is hereby amended and restated as follows: A. Adoption. Subject to the exemptions set forth in Section 16.83.040, Part F and the phase-in periods set forth herein, there is hereby adopted the following schedule of fees: (i) TUMF fee schedule: $10,046.00 per single family residential unit $7,054.00 per multi-family residential unit $2.35 per square foot of an industrial project $12.94 per square foot of a retail commercial project $6.56 per square foot of a service commercial project $2.19 per square foot of a service Class A and B Office CITY COUNCIL ORDINANCE NO. 1216 PAGE30F5 (ii) Notwithstanding the fee schedule set forth in subsection (i), from July 1, 2007 to June 30, 2008, the TUMF fee schedule shall be as follows: $10,046.00 per single family residential unit $7,054.00 per multi-family residential unit $1.84 per square foot of an industrial project $9.99 per square foot of a retail commercial project $5.71 per square foot of a service commercial project $2.19 per square foot of a service Class A and B Office (iii) Notwithstanding the fee schedule set forth in subsection (i), from July 1,2008 through June 30, 2009, the fee schedule shall be as follows: $10,046.00 per single family residential unit $7,054.00 per multi-family residential unit $2.09 per square foot of an industrial project $11.46 per square foot of a retail commercial proj ect $6.14 per square foot of a service commercial project $2.19 per square foot of a service Class A and B Office (iv) Notwithstanding the fee schedule set forth in subsection (i), from July 1,2009, the fee schedule shall be as follows: $10,046.00 per single family residential unit $7,054.00 per multi-family residential unit $2.35 per square foot of an industrial project $12.94 per square foot of a retail commercial project $6.56 per square foot of a service commercial project CITY COUNCIL ORDINANCE NO. 1216 PAGE 4 OF 5 $2.19 per square foot of a service Class A and B Office SECTION 2. If any provision, clause, sentence or paragraph of this Ordinance or the application thereof to any person or circumstance shall be held invalid, such invalidity shall not affect the other provisions of this Ordinance and are hereby declared to be severable. SECTION 3. This Ordinance shall take effect 60 days after the date of its final passage. The Interim City Clerk shall certify as to adoption of this Ordinance and cause this Ordinance to be published and posted in the manner required by law. INTRODUCED AND APPROVED UPON FIRST READING this 24th day of April, 2007, upon the following roll call vote: AYES: COUNCILMEMBERS: BUCKLEY, HICKMAN, KELLEY, SCHIFFNER, MAGEE NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: NONE ABSTAIN: COUNCILMEMBERS: NONE PASSED, APPROVED AND ADOPTED UPON SECOND READING this 8th day of May, 2007, upon the following roll call vote: AYES: COUNCILMEMBERS: HICKMAN, KELLEY, SCHIFFNER, MAGEE NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: BUCKLEY /7 obert E. Magee, M City of Lake Elsinore ABSTAIN: COUNCILMEMBERS: CITY COUNCIL ORDINANCE NO. 1216 PAGE 5 OF 5 ATTEST: ~ lucla/{f S0fo Michelle 80to, Interim City Clerk City of Lake Elsinore Barbara Ze' Leibold, City Attorney City of Lake Elsinore ORDINANCE NO. 1217 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, ACTING AS THE LEGISLATIVE BODY OF CITY OF LAKE ELSINORE COMMUNITY FACILITIES DISTRICT NO. 2003-1 (LAW ENFORCEMENT, FIRE AND PARAMEDIC SERVICES) AUTHORIZING THE LEVY OF A SPECIAL TAX WITHIN ANNEXATION AREA NO. 22 (TRACT 32503) ANNEXED TO SAID DISTRICT WHEREAS, on March 13, 2007, the City Council (the "Council") of the City of Lake Elsinore, California (the "City") adopted Resolution No. 2007-26 stating its intention to annex certain property (Annexation Area No. 22 (Tract 32503) ("Annexation Area No. 22")) into City of Lake Elsinore Community Facilities District No. 2003-1 (Law Enforcement, Fire and Paramedic Services) (the "District") pursuant to the Mello-Roos Community Facilities Act of 1982, as amended, (the "Act"); and WHEREAS, notice was published as required by law relative to the intention of the Council to annex Annexation Area No. 22 into the District; and WHEREAS, on April 24, 2007 this Council held a noticed public hearing as required by law relative to the determination to proceed with the annexation of Annexation Area No. 22 into the District and the rate and method of apportionment and manner of collection of the special tax to be levied within Annexation Area No. 22 to finance certain public services; and WHEREAS, at said hearing all persons desiring to be heard on all matters pertaining to the annexation of Annexation Area No. 22 were heard and a full and fair hearing was held; and WHEREAS, the Council subsequent to said hearing adopted Resolution No. 2007-52 determining the validity of prior proceedings relative to the annexation of Annexation Area No. 22, annexed Annexation Area No. 22 into the District and authorized the levy of a special tax within Annexation Area No. 22; and WHEREAS, the Council subsequent to said hearing adopted Resolution No. 2007-53 which called an election within Annexation Area No. 22 for April 24, 2007 on the proposition of levying a special tax; and CITY COUNCIL ORDINANCE NO. 1217 PAGE20F4 WHEREAS, on April 24, 2007 an election was held within Annexation Area No. 22 in which the eligible electors approved by more than two-thirds vote the proposition of levying a special tax. THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, ACTING AS THE LEGISLATIVE BODY OF CITY OF LAKE ELSINORE COMMUNITY FACILITIES DISTRICT NO. 2003-1 (LAW ENFORCEMENT, FIRE AND PARAMEDIC SERVICES), DOES ORDAIN AS FOLLOWS: SECTION 1. A special tax is levied within the boundaries of Annexation Area No. 22 pursuant to the formula set forth in Exhibit "A" attached hereto and incorporated by reference in an amount necessary to finance a portion of the cost of providing law enforcement, fire and paramedic services that are in addition to those provided in the territory within Annexation Area No. 22 prior to the annexation of Annexation Area No. 22 into the District, periodic costs, and costs of the tax levy and collection. SECTION 2. This legislative body is hereby further authorized each year, by resolution adopted as provided in section 53340 of the Act, to determine the specific special tax rate and amount to be levied for the next fiscal year, except that the special tax rate to be levied shall not exceed the maximum rate set forth in Exhibit "A." SECTION 3. All of the collections of the special tax shall be used as provided for in the Act and Resolution No. 2007-54 of the Council. SECTION 4. The above authorized special tax shall be collected in the same manner as ordinary ad valorem taxes are collected and shall be subject to the same penalties and the same procedure and sale in cases of delinquency and provided for ad valorem taxes. SECTION 5. The Mayor shall sign this ordinance and the Interim City Clerk shall attest to such signature. The Interim City Clerk is directed to cause the title and summary or text of this ordinance, together with the vote thereon, to be published within fifteen (15) days after its passage at least once in a newspaper of general circulation published and circulated within the territorial jurisdiction of the City, and to post at the main office of the City a certified copy of the full text of the adopted ordinance along with the names of the Council Members voting for and against the ordinance. CITY COUNCIL ORDINANCE NO. 1217 PAGE 3 OF 4 SECTION 6. If any provision, clause, sentence or paragraph of this Ordinance or the application thereof to any person or circumstance shall be held invalid, such invalidity shall not affect the other provisions of this Ordinance and are hereby declared to be severable. SECTION 7. This ordinance relating to the levy of the special tax takes effect and shall be in force from and after thirty (30) days after the date of its final passage. A copy of this ordinance shall be transmitted to the Clerk of the Board of Supervisors of Riverside County, the Assessor and the Treasurer-Tax Collector of Riverside County. The Interim City Clerk shall certify as to adoption of this Ordinance and cause this Ordinance to be published and posted in the manner required by law. INTRODUCED AND APPROVED UPON FIRST READING this 24th day of April, 2007, upon the following roll call vote: AYES: COUNCILMEMBERS: BUCKLEY, HICKMAN, KELLEY, SCHIFFNER, MAGEE COUNCILMEMBERS: NONE NOES: ABSENT: COUNCILMEMBERS: NONE ABSTAIN: COUNCILMEMBERS: NONE PASSED, APPROVED AND ADOPTED UPON SECOND READING this 8th day of May, 2007, upon the following roll call vote: AYES: COUNCILMEMBERS: HICKMAN, KELLEY, SCHIFFNER, MAGEE NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: BUCKLEY ABSTAIN: COUNCILMEMBERS: NONE CITY COUNCIL ORDINANCE NO. 1217 PAGE 4 OF 4 ATTEST: l' " l/t!)L2 l/U (>)Ia-/o MiChelle 80to, Interim City Clerk City of Lake Elsinore .# NOTICE OF ADOPTION OF ORDINANCE NO. 1217 NOTICE IS HEREBY GIVEN that on April 24, 2007, at the Council Chambers of the City of Lake Elsinore, 183 North Main Street, Lake Elsinore, California 92530, the City Council of the City of Lake Elsinore, in its capacity as the legislative body of the City of Lake Elsinore Community Facilities District No. 2003-1 (Law Enforcement, Fire and Paramedic Services), held a public hearing and adopted Ordinance No. 1217. A summary of Ordinance No. 1217 follows and is marked as Exhibit "B". At said time and place the testimony of all interested persons or taxpayers for or against said ordinance was heard. Ordinance No. 1217 was adopted by the following vote: AYES: BUCKLEY, HICKMAN, KELLEY, SCHIFFNER, MAGEE NOES: NONE ABSTAIN: NONE ABSENT: NONE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, ACTING AS THE LEGISLATIVE BODY OF THE CITY OF LAKE ELSINORE COMMUNITY FACILITIES DISTRICT NO. 2003-1 (LAW ENFORCEMENT, FIRE AND PARAMEDIC SERVICES) By~ J{ ~ld UJ ~io - Michelle Soto, Interim City Clerk Dated: May \ 0 , 2007 EXHIBIT B BEFORE THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE IN ITS CAPACITY AS THE LEGISLATIVE BODY OF THE CITY OF LAKE ELSINORE COMMUNITY FACILITIES DISTRICT NO. 2003-1 (LAW ENFORCEMENT, FIRE AND PARAMEDIC SERVICES) IN THE MATTER OF Authorizing the Levy of a Special Tax Within Annexation Area No. 22 (Tract 32503) Annexed to City of Lake Elsinore Community Facilities District No. 2003-1 (Law Enforcement, Fire and Paramedic Services) ) ORDINANCE NO. 1217 SUMMARY ) ) ) ) ) ) ) ) ) The ordinance authorizes levy of an annual special tax within Annexation Area No. 22 (Tract 32503) annexed to City of Lake Elsinore Community Facilities District No. 2003-1 (Law Enforcement, Fire and Paramedic Services) (the "District"), collected in the same manner as ordinary ad valorem taxes, in an amount necessary to finance a portion of the cost of providing law enforcement, fire and paramedic services that are in addition to those provided in the territory within Annexation Area No. 22 (Tract 32503) prior to the annexation of Annexation Area No. 22 (Tract 32503) to the District, which is necessary to meet increased demands placed upon the City as a result of development or rehabilitation occurring within Annexation Area No. 22 (Tract 32503). DATED: May \~, 2007 CITY OF LAKE ELSINORE B~tlIOllLG Q~ Ichelle Soto, Intenm CIty Clerk 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 with the rate and method 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 Taxes of the District. Definitions Assessor's Parcel. A parcel of land in the District designated and assigned a discrete identifying number on a map of the 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 1 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 1 preceding any Fiscal Year for the construction of a Unit that is not Developed Multi-family Property. Fiscal Year. The period beginning on July 1 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 Apportionment of Maximum Annual Special Taxes As of July 1 of each Fiscal Year, commencing July 1, 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 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. Duration of the Maximum Annual 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 when 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 Government Code. ORDINANCE NO. 1218 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, ACTING AS THE LEGISLATIVE BODY OF CITY OF LAKE ELSINORE COMMUNITY FACILITIES DISTRICT NO. 2006-5 (PARKS, OPEN SPACE AND STORM DRAIN MAINTENANCE) AUTHORIZING THE LEVY OF A SPECIAL TAX WITHIN ANNEXATION AREA NO.1 (TRACT 32503) ANNEXED TO SAID DISTRICT WHEREAS, on March 13, 2007, the City Council (the "Council") of the City of Lake Elsinore, California (the "City") adopted Resolution No. 2007-25 stating its intention to annex certain property (Annexation Area No. I (Tract 32503) ("Annexation Area No.1")) into City of Lake Elsinore Community Facilities District No. 2006-5 (Parks, Open Space and Storm Drain Maintenance) (the "District") pursuant to the Mello-Roos Community Facilities Act of 1982, as amended, (the "Act"); and WHEREAS, notice was published as required by law relative to the intention of the Council to annex Annexation Area No. 1 into the District; and WHEREAS, on April 24, 2007 this Council held a noticed public hearing as required by law relative to the determination to proceed with the annexation of Annexation Area No. 1 into the District and the rate and method of apportionment and manner of collection of the special tax to be levied within Annexation Area No. 1 to finance certain public services; and WHEREAS, at said hearing all persons desiring to be heard on all matters pertaining to the annexation of Annexation Area No.1 were heard and a full and fair hearing was held; and WHEREAS, the Council subsequent to said hearing adopted Resolution No. 2007-55 determining the validity of prior proceedings relative to the annexation of Annexation Area No.1, annexed Annexation Area No. 1 into the District and authorized the levy of a special tax within Annexation Area No.1; and WHEREAS, the Council subsequent to said hearing adopted Resolution No. 2007-56 which called an election within Annexation Area No.1 for April 24, 2007 on the proposition of levying a special tax; and CITY COUNCIL ORDINANCE NO. 1218 PAGE20F4 WHEREAS, on April 24, 2007 an election was held within Annexation Area No. 1 in which the eligible electors approved by more than two-thirds vote the proposition of levying a special tax. THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, ACTING AS THE LEGISLATIVE BODY OF CITY OF LAKE ELSINORE COMMUNITY FACILITIES DISTRICT NO. 2006-5 (PARKS, OPEN SPACE AND STORM DRAIN MAINTENANCE), DOES ORDAIN AS FOLLOWS: SECTION 1. A special tax is levied within the boundaries of Annexation Area No.1 pursuant to the formula set forth in Exhibit "A" attached hereto and incorporated by reference in an amount necessary to finance a portion of the cost of providing parks, open space and storm drain maintenance services that are in addition to those provided in the territory within Annexation Area No.1 prior to the annexation of Annexation Area No. 1 into the District, periodic costs, and costs of the tax levy and collection. SECTION 2. This legislative body is hereby further authorized each year, by resolution adopted as provided in section 53340 of the Act, to determine the specific special tax rate and amount to be levied for the next fiscal year, except that the special tax rate to be levied shall not exceed the maximum rate set forth in Exhibit "A." SECTION 3. All of the collections of the special tax shall be used as provided for in the Act and Resolution No. 2007-57 of the Council. SECTION 4. The above authorized special tax shall be collected in the same manner as ordinary ad valorem taxes are collected and shall be subject to the same penalties and the same procedure and sale in cases of delinquency and provided for ad valorem taxes. SECTION 5. The Mayor shall sign this ordinance and the Interim City Clerk shall attest to such signature. The Interim City Clerk is directed to cause the title and summary or text of this ordinance, together with the vote thereon, to be published within fifteen (15) days after its passage at least once in a newspaper of general circulation published and circulated within the territorial jurisdiction of the City, and to post at the main office of the City a certified copy of the full text of the adopted ordinance along with the names of the Council Members voting for and against the ordinance. CITY COUNCIL ORDINANCE NO. 1218 PAGE30F4 SECTION 6. If any provision, clause, sentence or paragraph of this Ordinance or the application thereof to any person or circumstance shall be held invalid, such invalidity shall not affect the other provisions of this Ordinance and are hereby declared to be severable. SECTION 7. This ordinance relating to the levy of the special tax takes effect and shall be in force from and after thirty (30) days after the date of its final passage. A copy of this ordinance shall be transmitted to the Clerk of the Board of Supervisors of Riverside County, the Assessor and the Treasurer-Tax Collector of Riverside County. The Interim City Clerk shall certify as to adoption of this Ordinance and cause this Ordinance to be published and posted in the manner required by law. INTRODUCED AND APPROVED UPON FIRST READING this 24th day of April, 2007, upon the following roll call vote: AYES: COUNCILMEMBERS: BUCKLEY, HICKMAN, KELLEY, SCHIFFNER, MAGEE COUNCILMEMBERS: NONE NOES: ABSENT: COUNCILMEMBERS: NONE ABSTAIN: COUNCILMEMBERS: NONE PASSED, APPROVED AND ADOPTED UPON SECOND READING this 8th day of May, 2007, upon the following roll call vote: AYES: COUNCILMEMBERS: HICKMAN, KELLEY, SCHIFFNER, MAGEE COUNCILMEMBERS: NONE NOES: ABSENT: COUNCILMEMBERS: BUCKLEY ABSTAIN: COUNCILMEMBERS: NONE CITY COUNCIL ORDINANCE NO. 1218 PAGE 4 OF 4 ATTEST: UVQLQ{,li Sdo Michelle 80to, Interim City Clerk City of Lake Elsinore Robert E. Magee, M City of Lake Elsino CITY OF LAKE ELSINORE COMMUNITY FACILITIES DISTRICT NO. 2006-5 (PARKS, OPEN SPACE AND STORM DRAIN MAINTENANCE) RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX Introduction Special taxes shall be annually levied on all Developed Single Family Property, Developed Multi- Family Property and Developed Non-Residential Property (as hereinafter defined) in City of Lake Elsinore Community Facilities District No. 2006-5 (Parks, Open Space and Storm Drain Maintenance) (the "District"), in accordance with the rate and method of apportionment of special taxes hereinafter set forth. All of the property within the District that is not Developed Single Family Property, Developed Multi-Family Property, or Developed Non-Residential Property shall be exempt from the Maximum Annual Special Taxes of the District. Definitions "Assessor's Parcel" means a parcel of land in the District designated and assigned a discrete identifying number on a map of the County Assessor of the County of Riverside. "City" means the City of Lake Elsinore, California. "Developed Multifamily Property" 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 is being levied. "Developed Non-Residential Property" means all Assessor's Parcels for which a building permit was issued by the City for any type of non-residential use, excluding property owned by local, state, or federal government, on or prior to May I preceding the Fiscal Year in which the Special Tax is being levied. "Developed Single Family Property" means a residential dwelling unit other than a Developed Multifamily Property 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 is being levied. "Fiscal Year" means the period beginning on July I and ending on the following June 30. "Maximum Special Tax" means the maximmn Special Tax that can be levied by CFD No. 2006- 5 in any Fiscal Year on any Assessor's Parcel. "Operating Fund" means a fund that shall be maintained for CFD No. 2006-5 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" means any of the special taxes authorized to be levied within CFD No. 2006-5 pursuant to the Act to fund the Special Tax Requirement. "Special Tax Requirement" means the amount determined in any Fiscal Year for CFD No. 2006-5 equal to (i) the budgeted costs directly related to the Service Area, including maintenance, repair and replacement of certain components of the Service Area which have been accepted and maintained or are reasonably expected to be accepted and maintained during the current Fiscal Year, (ii) Administrative Expenses, and (iii) anticipated delinquent Special Taxes based on the delinquency rate in CFD No. 2006- 5 for the previous Fiscal Year, less (iv) the Operating Fund Balance, as determined by the CFD Administrator. "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 the Special Tax Commencing Fiscal Year 2005-2006 and for each subsequent Fiscal Year, the City Council shall levy Special Taxes on (i) all Assessor's Parcels containing a Developed Single Family Property Unit or Developed Multifamily Property Unit and (ii) all Assessor's Parcels of Non-Residential Property, up to the applicable Maximum Special Tax to fund the Special Tax Requirement. The Maximum Special Tax for Fiscal Year 2005-2006 shall be $242 per Developed Single Family Property Unit, $121 per Developed Multifamily Property 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 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. 2006-5 may collect the Special Tax at a different time or in a different manner if necessary to meet its funding requirements. NOTICE OF ADOPTION OF ORDINANCE NO. 1218 NOTICE IS HEREBY GIVEN that on April 24, 2007, at the Council Chambers of the City of Lake Elsinore, 183 North Main Street, Lake Elsinore, California 92530, the City Council of the City of Lake Elsinore, in its capacity as the legislative body of the City of Lake Elsinore Community Facilities District No. 2006-5 (Parks, Open Space and Storm Drain Maintenance), held a public hearing and adopted Ordinance No. 1218. A summary of Ordinance No. 1218 follows and is marked as Exhibit "B". At said time and place the testimony of all interested persons or taxpayers for or against said ordinance was heard. Ordinance No. 1218 was adopted by the following vote: AYES: BUCKLEY, HICKMAN, KELLEY, SCHIFFNER, MAGEE NOES: NONE ABSTAIN: NONE ABSENT: NONE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, ACTING AS THE LEGISLATIVE BODY OF THE CITY OF LAKE ELSINORE COMMUNITY FACILITIES DISTRICT NO. 2006-5 (PARKS, OPEN SPACE AND STORM DRAIN MAINTENANCE) Dated: May ~, 2007 B~ lGcJ d}Y S~ Michelle Soto, Interim City Clerk EXHIBIT B BEFORE THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE IN ITS CAPACITY AS THE LEGISLATIVE BODY OF THE CITY OF LAKE ELSINORE COMMUNITY FACILITIES DISTRICT NO. 2006-5 (PARKS, OPEN SPACE AND STORM DRAIN MAINTENANCE) IN THE MATTER OF Authorizing the Levy of a Special Tax Within Annexation Area No.1 (Tract 32503) Annexed to City of Lake Elsinore Community Facilities District No. 2006-5 (Parks, Open Space and Storm Drain Maintenance) ) ORDINANCE NO. 1218 SUMMARY ) ) ) ) ) ) ) ) The ordinance authorizes levy of an annual special tax within Annexation Area No. 1 (Tract 32503) annexed to City of Lake Elsinore Community Facilities District No. 2006-5 (Parks, Open Space and Storm Drain Maintenance) (the "District"), collected in the same manner as ordinary ad valorem taxes, in an amount necessary to finance a portion of the cost of providing law enforcement, fire and paramedic services that are in addition to those provided in the territory within Annexation Area No.1 (Tract 32503) prior to the annexation of Annexation Area No. 1 (Tract 32503) to the District, which is necessary to meet increased demands placed upon the City as a result of development or rehabilitation occurring within Annexation Area No.1 (Tract 32503). DATED: May R, 2007 CITY OF LAKE ELSINORE B~ Jhold,~ 8lQ:& Michelle Soto, Interim City Clerk ORDINANCE NO. 1219 ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, ACTING AS THE LEGISLATIVE BODY OF THE CITY OF LAKE ELSINORE COMMUNITY FACILITIES DISTRICT NO. 2004-3 (ROSETTA CANYON), AUTHORIZING THE LEVY OF A SPECIAL TAX WHEREAS, the City Council (the "Council") of the City of Lake Elsinore (the "City") has previously established the City of Lake Elsinore Community Facilities District No. 2004-3 (Rosetta Canyon) (the "CFD") and designated portions of the CFD as Improvement Area No. 1 and Improvement Area No.2, all pursuant to the Mello-Roos Community Facilities Act of 1982, as amended (the "Act"); and WHEREAS, the Council has heretofore adopted Resolution No. 2007-28 ("Resolution of Intention") stating its intention to annex certain property (the "Annexation Area") into Improvement Area No. 2 to finance the purchase, construction, expansion or rehabilitation of certain real and other tangible property with an estimated useful life of five years or longer, including public infrastructure facilities and other governmental facilities, which the City is authorized by law to construct, own or operate (the "Facilities"); and WHEREAS, notice was published as required by law relative to the intention of the Council to annex the Annexation Area into Improvement Area No. 2 and the levying of special tax; and WHEREAS, on April 24, 2007, this Council held a noticed public hearing as required by law relative to the determination to proceed with the annexation of the Annexation Area into Improvement Area No. 2 and the rate and method of apportionment and manner of collection of the special tax to be levied within the Annexation Area; and WHEREAS, at said hearing all persons desiring to be heard on all matters pertaining to the annexation of Annexation Area into Improvement Area No.2 and the levy of the special tax were heard and a full and fair hearing was held; and WHEREAS, the Council subsequent to said hearing adopted Resolution No. 2007-58 (the "Resolution Determining Validity") determining the validity of prior proceedings and annexing the Annexation Area into Improvement Area No.2; and CITY COUNCIL ORDINANCE NO. 1219 PAGE20F4 WHEREAS, the Council subsequent to said hearing adopted Resolution No. 2007-59 which called an election within the Annexation Area for April 24, 2007 on the proposition of levying a special tax; and WHEREAS, on April 24, 2007, an election was held within the Annexation Area in which the eligible electors approved by more than two-thirds vote the proposition of levying a special tax. THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE DOES ORDAIN AS FOLLOWS: SECTION 1. A special tax (the "Special Tax") is levied within the boundaries of the Annexation Area pursuant to the formulas set forth in Exhibit "A" attached hereto and incorporated by reference in an amount necessary to pay all of the costs of providing the Facilities, periodic costs, and costs of the tax levy and collection, and all other costs including amounts payable with respect to the bonded indebtedness. SECTION 2. This legislative body is hereby further authorized each year, by resolution adopted as provided in section 53340 of the Act, to determine the specific special tax rate and amount to be levied for the then current or future tax years, except that the special tax rate to be levied shall not exceed the maximum rate set forth in Exhibit "A". SECTION 3. All of the collections of the Special Tax shall be used as provided for in the Act and the Resolution Determining Validity. SECTION 4. The above authorized Special Tax shall be collected in the same manner as ordinary ad valorem taxes are collected and shall be subject to the same penalties and the same procedure and sale in cases of delinquency and provided for ad valorem taxes; provided, however, the CFD may collect the Special Tax at a different time or in a different manner if necessary to meet its financial obligations. SECTION 5. If any provision, clause, sentence or paragraph of this Ordinance or the application thereof to any person or circumstance shall be held invalid, such invalidity shall not affect the other provisions of this Ordinance and are hereby declared to be severable. CITY COUNCIL ORDINANCE NO. 1219 PAGE 3 OF 4 SECTION 6. The Mayor shall sign this ordinance and the Interim City Clerk shall attest to such signature. The Interim City Clerk is directed to cause the title and summary or text of the this ordinance, together with the vote thereon, to be published within fifteen (15) days after its passage at least once in a newspaper of general circulation published and circulated within the territorial jurisdiction of the City, and to post at the main office of the City a certified copy of the full text of the adopted ordinance along with the names of the council Members voting for and against the ordinance. SECTION 7. This ordinance relating to the levy of the Services Special Tax and the Special Tax takes effect and shall be in force from and after 30 days from the date of final passage. A copy of this ordinance shall be transmitted to the Clerk of the Board of Supervisors of Riverside County, the Assessor and the Treasurer- Tax Collector of Riverside County. INTRODUCED AND APPROVED UPON FIRST READING this 24th day of April, 2007, upon the following roll call vote: AYES: COUNCILMEMBERS: BUCKLEY, HICKMAN, KELLEY, SCHIFFNER, MAGEE NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: NONE ABSTAIN: COUNCILMEMBERS: NONE CITY COUNCIL ORDINANCE NO. 1219 PAGE40F4 PASSED, APPROVED AND ADOPTED UPON SECOND READING this 8th day of May, 2007, upon the following roll call vote: AYES: COUNCILMEMBERS: HICKMAN, KELLEY, SCHIFFNER, MAGEE COUNCILMEMBERS: NONE NOES: ABSENT: COUNCILMEMBERS: BUCKLEY ABSTAIN: COUNCILMEMBERS: NONE obert E. Magee, May City of Lake Elsinore ATTEST: JJjdJif; ~ Michel e Soto, Interim City Clerk City of Lake Elsinore APPROVED AS TO ~ORM: AMENDED RATE AND METHOD OF APPORTIONMENT FOR CITY OF LAKE ELSINORE COMMUNITY FACILITIES DISTRICT No. 2004-3 IMPROVEMENT AREA No.2 (ROSETTA CANYON) A Special Tax shall be levied on all Assessor's Parcels in City of Lake Elsinore Community Facilities District No. 2004-3 (Improvement Area No.2) (Rosetta Canyon) ("CFD No. 2004-3 (IA No. 2)") and collected each Fiscal Year commencing in Fiscal Year 2005-2006, in an amount determined through the application of the Rate and Method of Apportionment as described below. All of the real property in CFD No. 2004-3 (IA No.2), unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent and in the manner herein provided. A. DEFINITIONS The terms hereinafter set forth have the following meanings: "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. "Act" means the Mello-Roos Community Facilities Act of 1982, being Chapter 2.5, Division 2 of Title 5 of the California Government Code. "Administrative Expenses" means the following actual or reasonably estimated costs directly related to the administration ofCFD No. 2004-3 (IA No.2): the costs of computing the Special Taxes and preparing the annual Special Tax collection schedules (whether by the City or designee thereof or both); the costs of collecting the Special Taxes (whether by the City or otherwise); the costs of remitting the Special Taxes to the Trustee; the costs of the Trustee (including its legal counsel) in the discharge of the duties required of it under the Indenture; the costs to the City, CFD No. 2004-3 (IA No.2) or any designee thereof of complying with arbitrage rebate requirements; the costs to the City, CFD No. 2004-3 (IA No. 2) or any designee thereof of complying with disclosure requirements ofthe City, CFD No. 2004-3 (IA No.2) or obligated persons associated with applicable federal and state securities laws and the Act; the costs associated with preparing Special Tax disclosure statements and responding to public inquiries regarding the Special Taxes; the costs of the City, CFD No. 2004-3 (IA No.2) or any designee thereof related to an appeal ofthe 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. Administrative Expenses shall also include amounts estimated by the CFD Administrator or advanced by the City or CFD No. 2004-3 (IA No.2) for any other administrative purposes of CFD No. 2004-3 (IA No.2), including attorney's fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes. "Assessor's Parcel" means a lot or parcel shown in an Assessor's Parcel Map with an assigned Assessor's Parcel number. City of Lake Elsinore CFD No. 2004-3 (IA No.2) December 16, 2004 (Amended May 23, 2006) Page 1 "Assessor's Parcel Map" means an official map of the County Assessor of the County designating parcels by Assessor's Parcel number. "Assigned Special Tax" means the Special Tax for each Land Use Class of Developed Property in each Zone, as determined in accordance with Section C.1.b. below. "Authorized Facilities" means those authorized improvements, as listed on Exhibit "A" to the Resolution of Formation. "Backup Special Tax" means the Special Tax applicable to each Assessor's Parcel of Developed Property, as determined in accordance with Section C.1.d. below. "CFD Administrator" means an official of the City, or designee thereof, responsible for determining the Special Tax Requirement and providing for the levy and collection of the Special Taxes. "CFD No. 2004-3" means City of Lake Elsinore Community Facilities District No. 2004-3 (Rosetta Canyon). "CFD No. 2004-3 (IA No.2)" means Improvement Area No.2 of CFD No. 2004-3, as identified on the boundary map for CFD No. 2004-3. "CFD No. 2004-3 (IA No.2) Bonds" means any bonds or other debt (as defined in Section 53317(d) of the Act), whether in one or more series, issued by CFD No. 2004-3 and secured solely by Special Taxes levied on property within the boundaries ofCFD No. 2004-3 (IA No. 2) under the Act. "City" means the City of Lake Elsinore. "City Council" means the City Council of the City of Lake Elsinore, acting as the legislative body of CFD No. 2004-3 (IA No.2). "County" means the County of Riverside. "Developed Property" means, for each Fiscal Year, all Taxable Property, exclusive of Taxable Public Property and Taxable Property Owner Association Property, for which the Final Subdivision was recorded on or before January 1 of the prior Fiscal Year and a building permit for new construction was issued after January 1, 2004 and on or before May 1 of the Fiscal Year preceding the Fiscal Year for which the Special Taxes are being levied. "Final Subdivision" 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. City of Lake Elsinore CFD No. 2004-3 (IA No.2) December 16,2004 (Amended May 23,2006) Page 2 "Fiscal Year" means the period starting July 1 and ending on the following June 30. "Indenture" means the indenture, fiscal agent agreement, resolution or other instrument pursuant to which CFD No. 2004-3 (IA No.2) Bonds are issued, as modified, amended and/or supplemented from time to time, and any instrument replacing or supplementing the same. "Land Use Class" means any of the classes listed in Table 1. "Maximum Special Tax" means the maximum Special Tax, determined in accordance with Section C below, that can be levied in any Fiscal Year on any Assessor's Parcel. "Non-Residential Property" means all Assessor's Parcels of Developed Property for which a building permit permitting the construction of one or more non-residential units or facilities has been issued by the City. "Outstanding Bonds" means all CFD No. 2004-3 (IA No.2) Bonds which are deemed to be outstanding under the Indenture. "Property Owner Association Property" means, for each Fiscal Year, any property within the boundaries of CFD No. 2004-3 (IA No.2) that was owned by a property owner association, including any master or sub-association, as of January 1 of the prior Fiscal Year. "Proportionately" means for Developed Property that the ratio ofthe actual Special Tax levy to the Assigned Special Tax is equal for all Assessor's Parcels of Developed Property, or where the Backup Special Tax is being levied, that the ratio of the actual Special Tax levy to the Maximum Special Tax is equal for all Assessor's Parcels upon which a Backup Special Tax is being levied. For Undeveloped Property, "Proportionately" means that the ratio of the actual Special Tax levy per Acre to the Maximum Special Tax per Acre is equal for all Assessor's Parcels of Undeveloped Property. The term "Proportionately" may similarly be applied to other categories of Taxable Property as listed in Section D below. "Public Property" means property within the boundaries of CFD No. 2004-3 (IA No.2) owned by, irrevocably offered or dedicated to, or over, through or under which an easement for purposes of public right-of-way has been granted, to the federal government, the State, the County, the City, or any local government or other public agency, provided that any property leased by a public agency to a private entity and subject to taxation under Section 53340.1 of the Act shall be taxed and classified according to its use. "Residential Floor Area" means all of the square footage of living area within the perimeter of a residential structure, not including any carport, walkway, garage, overhang, patio, enclosed patio, or similar area. The determination of Residential Floor Area for an Assessor's Parcel shall be made by reference to the building permit(s) issued for such Assessor's Parcel. City of Lake Elsinore CFD No. 2004-3 (IA No.2) December 16, 2004 (Amended May 23, 2006) Page 3 "Residential Property" means all Assessor's Parcels of Developed Property for which a building permit permitting the construction thereon of one or more residential dwelling units has been issued by the City. "Resolution of Formation" means the Resolution of Formation for CFD No. 2004-3 (IA No.2). "Special Tax" means the special tax to be levied in each Fiscal Year on each Assessor's Parcel of Developed Property, Taxable Property Owner Association Property, Taxable Public Property, and Undeveloped Property to fund the Special Tax Requirement. "Special Tax Requirement" means that amount required in any Fiscal Year for CFD No. 2004-3 (IA No.2) to: (i) pay debt service on all Outstanding Bonds due in the calendar year commencing in such Fiscal Year; (ii) pay periodic costs on the CFD No. 2004-3 (IA No.2) Bonds, including but not limited to, credit enhancement and rebate payments on the CFD No. 2004-3 (IA No.2) Bonds due in the calendar year commencing in such Fiscal Year; (iii) pay Administrative Expenses; (iv) pay any amounts required to establish or replenish any reserve funds for all Outstanding Bonds; (v) pay for reasonably anticipated Special Tax delinquencies based on the delinquency rate for the Special Tax levy in the previous Fiscal Year; (vi) pay directly for acquisition or construction of Authorized Facilities to the extent that the inclusion of such amount does not increase the Special Tax levy on Undeveloped Property; less (vii) a credit for funds available to reduce the annual Special Tax levy, as determined by the CFD Administrator pursuant to the Indenture. "State" means the State of California. "Taxable Property" means all of the Assessor's Parcels within the boundaries ofCFD No. 2004-3 (IA No.2) which are not exempt from the Special Tax pursuant to law or Section E below. "Taxable Property Owner Association Property" means all Assessor's Parcels of Property Owner Association Property that are not exempt pursuant to Section E below. "Taxable Public Property" means all Assessor's Parcels of Public Property that are not exempt pursuant to Section E below. "Trustee" means the trustee, fiscal agent, or paying agent under the Indenture. "Undeveloped Property" means, for each Fiscal Year, all Taxable Property not classified as Developed Property, Taxable Property Owner Association Property, or Taxable Public Property . "Zone" means Zone 1 or Zone 2, as applicable. "Zone 1" means the land geographically identified within the boundaries of zone 1 as delineated in Exhibit A to this Rate and Method of Apportionment. City of Lake Elsinore CFD No. 2004-3 (IA No.2) December 16,2004 (Amended May 23,2006) Page 4 "Zone 2" means the land geographically identified within the boundaries of zone 2 as delineated in Exhibit A to this Rate and Method of Apportionment. B. ASSIGNMENT TO LAND USE CATEGORIES Each Fiscal Year, all Taxable Property within CFD No. 2004-3 (IA No.2) shall be assigned to a Zone and further classified as Developed Property, Taxable Public Property, Taxable Property Owner Association Property, or Undeveloped Property, and shall be subject to Special Taxes in accordance with this Rate and Method of Apportionment determined pursuant to Sections C and D below. Residential Property shall be assigned to Land Use Classes 1 through 11 as listed in Table 1 below based on the Residential Floor Area for each unit. Non-Residential Property shall be assigned to Land Use Class 12. C. MAXIMUM SPECIAL TAX RATE 1. Developed Property a. Maximum Special Tax The Maximum Special Tax for each Assessor's Parcel classified as Developed Property shall be the greater of (i) the amount derived by application of the Assigned Special Tax or (ii) the amount derived by application of the Backup Special Tax. b. Assigned Special Tax The Assigned Special Tax for each Land Use Class is shown below in Table 1. City of Lake Elsinore CFD No. 2004-3 (IA No.2) December 16, 2004 (Amended May 23, 2006) Page 5 TABLE 1 Assigned Special Taxes for Developed Property Community Facilities District No. 2004-3 Improvement Area No.2 Fiscal Year 2005-2006 1 Residential Property > 3,950 s.f. $3,271.79 per unit $3,565.47 per unit 2 Residential Property 3,701 - 3,950 s.f. $3,174.02 per unit $3,504.87 per unit 3 Residential Property 3,451 - 3,700 s.f. $3,076.25 per unit $3,443.77 per unit 4 Residential Property 3,201 - 3,450 s.f. $2,978.48 per unit $3,290.64 per unit 5 Residential Property 2,951 - 3,200 s.f. $2,880.71 per unit $3,172.60 per unit 6 Residential Property 2,701 - 2,950 s.f. $2,727.85 per unit $3,055.06 per unit 7 Residential Property 2,451 - 2,700 s.f. $2,659.26 per unit $2,975.78 per unit 8 Residential Property 2,201 - 2,450 s.f. $2,590.67 per unit $2,844.10 per unit 9 Residential Property 1,951 - 2,200 s.f. $2,411.94 per unit $2,770.55 per unit 10 Residential Property 1,700 - 1,950 s.f. $2,353.03 per unit $2,688.11 per unit 11 Residential Property < 1,700 s.f. $2,294.11 per unit $2,590.62 per unit 12 Non-Residential Property NA $17,817 per Acre $16,754 per Acre c. Increase in the Assigned Special Tax The Assigned Special Taxes identified in Table 1 above shall be applicable for Fiscal Year 2005-2006, and shall increase thereafter, commencing on July 1, 2006 and on July 1 of each Fiscal Year thereafter, by an amount equal to two percent (2%) of the Assigned Special Tax for the previous Fiscal Year. d. Backup Special Tax The Fiscal Year 2005-2006 Backup Special Tax attributable to a Final Subdivision in Zone 1 or Zone 2 will equal $19,868 multiplied by the Acreage of all Taxable Property, exclusive of any Taxable Property Owner Association Property and Taxable Public Property, therein. The Backup Special Tax for each Assessor's Parcel of Residential Property shall be computed by dividing the Backup Special Tax attributable to the applicable Final Subdivision by the number of Assessor's Parcels for which building permits for residential construction have or may be issued (i.e., the number or City of Lake Elsinore December 16, 2004 (Amended May 23, 2006) CFD No. 2004-3 (IA No.2) Page 6 residential lots). The Backup Special Tax for each Assessor's Parcel of Non- Residential Property therein shall equal $19,868 multiplied by the Acreage of such Assessor's Parcel. If a Final Subdivision includes Assessor's Parcels of Taxable Property for which building permits for both residential and non-residential construction may be issued, exclusive of Taxable Property Owner Association Property and Taxable Public Property, then the Backup Special Tax for each Assessor's Parcel of Residential Property shall be computed exclusive ofthe Acreage and Assessor's Parcels of property for which building permits for non-residential construction may be issued. Notwithstanding the foregoing, if all or any portion of the Final Subdivision(s) described in the preceding paragraphs is subsequently changed or modified, then the Backup Special Tax for each Assessor's Parcel of Developed Property in such Final Subdivision area that is changed or modified shall be a rate per square foot of Acreage calculated as follows: 1. Determine the total Backup Special Taxes anticipated to apply to the changed or modified Final Subdivision area prior to the change or modification. 2. The result of paragraph 1 above shall be divided by the Acreage of Taxable Property which is ultimately expected to exist in such changed or modified Final Subdivision area, as reasonably determined by the CFD Administrator. 3. The result of paragraph 2 above shall be divided by 43,560. The result is the Backup Special Tax per square foot of Acreage which shall be applicable to Assessor's Parcels of Developed Property in such changed or modified Final Subdivision area for all remaining Fiscal Years in which the Special Tax may be levied. 1. Release of Obligation to Pay and Disclose Backup Special Tax All Assessors' Parcels within CFD No. 2004-3 (IA No.2) will be relieved simultaneously and permanently from the obligation to pay and disclose the Backup Special Tax if the CFD Administrator determines that the annual debt service required for the Outstanding Bonds, when compared to the Assigned Special Taxes that may be levied against all Assessors' Parcels of Developed Property result in 110% debt service coverage (i.e., the Assigned Special Taxes that may be levied against all Developed Property in each remaining Fiscal Year based on then existing development in CFD No. 2004-3 (IA No.2) is at least equal to the sum of (i) the Administrative City of Lake Elsinore CFD No. 2004-3 (IA No.2) December 16, 2004 (Amended May 23, 2006) Page 7 Expenses and (ii) 1.10 times maximum annual debt service, in each remaining Fiscal Year on the Outstanding Bonds). e. Increase in the Backup Special Tax On each July 1, commencing on July 1, 2006, the Backup Special Tax shall be increased by an amount equal to two percent (2%) of the Backup Special Tax for the previous Fiscal Year. f. Multiple Land Use Classes In some instances an Assessor's Parcel of Developed Property may contain more than one Land Use Class. The Maximum Special Tax levied on an Assessor's Parcel shall be the sum ofthe Maximum Special Tax for all Land Use Classes located on that Assessor's Parcel. The CFD Administrator's allocation to each type of property shall be final. 2. Taxable Property Owner Association Property, Taxable Public Property, and Undeveloped Property The Fiscal Year 2005-2006 Maximum Special Tax for Taxable Property Owner Association Property, Taxable Public Property, and Undeveloped Property in Zone 1 or Zone 2 shall be $19,868 per Acre, and shall increase thereafter, commencing on July 1, 2006 and on July 1 of each Fiscal Year thereafter, by an amount equal to two percent (2%) of the Maximum Special Tax for the previous Fiscal Year. D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX Commencing with Fiscal Year 2005-2006 and for each following Fiscal Year, the City Council shall levy the Special Tax until the amount of Special Taxes levied equals the Special Tax Requirement. The Special Tax shall be levied each Fiscal Year as follows: First: The Special Tax shall be levied on each Assessor's Parcel of Developed Property in Zone 1 and Zone 2 in an amount equal to 100% of the applicable Assigned Special Tax; Second: If additional monies are needed to satisfy the Special Tax Requirement after the first step has been completed, the Special Tax shall be levied Proportionately on each Assessor's Parcel of Undeveloped Property in Zone 1 and Zone 2 at up to 100% of the applicable Maximum Special Tax for Undeveloped Property; Third: If additional monies are needed to satisfy the Special Tax Requirement after the first two steps have been completed, then the levy of the Special Tax on each Assessor's Parcel of Developed Property in Zone 1 and Zone 2 whose Maximum Special Tax is determined through the application of the Backup Special Tax shall be increased Proportionately from the Assigned Special Tax up to the Maximum Special Tax for each such Assessor's Parcel; City of Lake Elsinore CFD No. 2004-3 (IA No.2) December 16, 2004 (Amended May 23, 2006) Page 8 Fourth: If additional monies are needed to satisfy the Special Tax Requirement after the first three steps have been completed, then the Special Tax shall be levied Proportionately on each Assessor's Parcel of Taxable Property Owner Association Property and Taxable Public Property in Zone I and Zone 2 at up to the applicable Maximum Special Tax for Taxable Property Owner Association Property or Taxable Public Property. Notwithstanding the above the City Council may, in any Fiscal Year, levy Proportionately less than 100% of the Assigned Special Tax in step one (above), when (i) the City Council is no longer required to levy the Special Tax pursuant to steps two through four above in order to meet the Special Tax Requirement; and (ii) all authorized CFD No. 2004-3 (IA No.2) Bonds have already been issued or the City Council has covenanted that it will not issue any additional CFD No. 2004-3 (IA No.2) Bonds (except refunding bonds) to be supported by the Special Tax. Further notwithstanding the above, under no circumstances will the Special Tax 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 the owner of any other Assessor's Parcel within CFD No. 2004-3 (IA No.2). E. EXEMPTIONS The City shall classify Property Owner Association Property and/or Public Property in CFD No. 2004-3 (IA No.2) as exempt property, provided that no such classification would reduce the Acreage of all Taxable Property to less than 75.86 Acres. Tax-exempt status will be assigned by the CFD Administrator in the chronological order in which property becomes Property Owner Association Property or Public Property. However, should an Assessor's Parcel no longer be classified as Property Owner Association Property or Public Property, its tax -exempt status will be revoked. Property Owner Association Property or Public Property that is not exempt from Special Taxes under this section shall be subject to the levy of the Special Tax and shall be taxed Proportionately as part of the fourth step in Section D above, at up to 100% of the applicable Maximum Special Tax for Taxable Property Owner Association Property or Taxable Public Property. F. MANNER OF COLLECTION The Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes; provided, however, that CFD No. 2004-3 (IA No.2) may directly bill the Special Tax, may collect Special Taxes at a different time or in a different manner if necessary to meet its financial obligations, and may covenant to foreclose and may actually foreclose on delinquent Assessor's Parcels as permitted by the Act. City of Lake Elsinore CFD No. 2004-3 (IA No.2) December 16, 2004 (Amended May 23, 2006) Page 9 G. APPEALS Any landowner or resident who feels that the amount of the Special Tax levied on their Assessor's Parcel is in error may submit a written appeal to CFD No. 2004-3 (IA No.2). The CFD Administrator shall review the appeal and if the CFD Administrator concurs, the amount ofthe Special Tax levied shall be appropriately modified. 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 resident appeals. Any decision of the City Council shall be final and binding as to all persons. H. PREP A YMENT OF SPECIAL TAX The following definitions apply to this Section H: "Buildout" means, for CFD No. 2004-3 (IA No.2), that all expected building permits have been issued. "CFD Public Facilities" means either $27,000,000 in 2006 dollars, which shall increase by the Construction Inflation Index on July 1,2007, and on each July 1 thereafter, or such lower number as (i) shall be determined by the CFD Administrator as sufficient to provide the public facilities to be provided by CFD No. 2004-3 (IA No.2) under the authorized bonding program for CFD No. 2004-3 (IA No.2), or (ii) shall be determined by the City Council concurrently with a covenant that it will not issue any more CFD No. 2004-3 (IA No.2) Bonds (except refunding bonds) to be supported by the Special Taxes levied under this Rate and Method of Apportionment as described in Section D. "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 CFD Administrator that is reasonably comparable to the Engineering News Record Building Cost Index for the City of Los Angeles. "Future Facilities Costs" means the CFD Public Facilities minus (i) public facility costs previously paid from the Improvement Fund, (ii) moneys currently on deposit in the Improvement Fund, and (iii) moneys currently on deposit in an escrow fund that are expected to be available to finance the cost of CFD Public Facilities. "Improvement Fund" means an account specifically identified in the Indenture to hold funds which are currently available for expenditure to acquire or construct CFD Public Facilities eligible under the Act. City of Lake Elsinore CFD No. 2004-3 (IA No.2) December 16, 2004 (Amended May 23, 2006) Page 10 "Previously Issued Bonds" means, for any Fiscal Year, all Outstanding Bonds that are deemed to be outstanding under the Indenture after the first interest and/or principal payment date following the current Fiscal Year. 1. Prepayment in Full Only an Assessor's Parcel of Developed Property, or Undeveloped Property for which a building permit has been issued, may be prepaid. The obligation of the Assessor's Parcel to pay any Special Tax may be permanently satisfied as described herein, provided that a prepayment may be made with respect to a particular Assessor's Parcel only ifthere are no delinquent Special Taxes with respect to such Assessor's Parcel at the time of prepayment. An owner of an Assessor's Parcel intending to prepay the Special Tax obligation shall provide the CFD Administrator with written notice of intent to prepay. Within 30 days of receipt of such written notice, the CFD Administrator shall notify such owner of the prepayment amount for such Assessor's Parcel. The CFD Administrator may charge a reasonable fee for providing this service. Prepayment must be made not less than 45 days prior to the next occurring date that notice of redemption of CFD No. 2004-3 (IA No.2) Bonds from the proceeds of such prepayment may be given by the Trustee pursuant to the Indenture. The Special Tax Prepayment Amount (defined below) shall be calculated as summarized below (capitalized terms as defined below): Bond Redemption Amount plus plus plus plus less less Total: equals Redemption Premium Future Facilities Amount Defeasance Amount Administrative Fees and Expenses Reserve Fund Credit Capitalized Interest Credit Prepayment Amount As of the proposed date of prepayment, the Special Tax Prepayment Amount shall be calculated as follows: Parae:raph No.: 1. Confirm that no Special Tax delinquencies apply to such Assessor's Parcel. 2. For Assessor's Parcels of Developed Property, compute the Assigned Special Tax and Backup Special Tax. For Assessor's Parcels of Undeveloped Property for which a building permit has been issued, compute the Assigned Special Tax and Backup Special Tax for that Assessor's Parcel as though it was already designated as Developed Property, based upon the building permit which has already been issued for that Assessor's Parcel. City of Lake Elsinore CFD No. 2004-3 (IA No.2) December 16, 2004 (Amended May 23, 2006) Page 11 3. (a) Divide the Assigned Special Tax computed pursuant to paragraph 2 by the total estimated Assigned Special Taxes for the entire CFD No. 2004-3 (IA No.2) based on the Developed Property Special Taxes which could be levied in the current Fiscal Year on all expected development through Buildout of CFD No. 2004-3 (IA No.2), excluding any Assessor's Parcels which have been prepaid, and (b) Divide the Backup Special Tax computed pursuant to paragraph 2 by the total estimated Backup Special Taxes at Buildout for the entire CFD No. 2004-3 (IA No. 2), excluding any Assessor's Parcels which have been prepaid. 4. Multiply the larger quotient computed pursuant to paragraph 3(a) or 3(b) by the Previously Issued Bonds to compute the amount of Previously Issued Bonds to be retired and prepaid (the "Bond Redemption Amount"). 5. Multiply the Bond Redemption Amount computed pursuant to paragraph 4 by the applicable redemption premium (e.g., the redemption price-l00%), if any, on the Previously Issued Bonds to be redeemed (the "Redemption Premium"). 6. Compute the current Future Facilities Costs. 7. Multiply the larger quotient computed pursuant to paragraph 3(a) or 3(b) by the amount determined pursuant to paragraph 6 to compute the amount of Future Facilities Costs to be prepaid (the "Future Facilities Amount"). 8. Compute the amount needed to pay interest on the Bond Redemption Amount from the first bond interest and/or principal payment date following the current Fiscal Year until the earliest redemption date for the Previously Issued Bonds. 9. Determine the Special Tax levied on the Assessor's Parcel in the current Fiscal Year which has not yet been paid. 10. Compute the minimum amount the CFD Administrator reasonably expects to derive from the reinvestment of the Special Tax Prepayment Amount less the Future Facilities Amount and the Administrative Fees and Expenses (defined below) from the date of prepayment until the redemption date for the Previously Issued Bonds to be redeemed with the prepayment. 11. Add the amounts computed pursuant to paragraphs 8 and 9 and subtract the amount computed pursuant to paragraph 10 (the "Defeasance Amount"). 12. The administrative fees and expenses ofCFD No. 2004-3 (IA No.2) are as calculated by the CFD Administrator and include the costs of computation of the prepayment, the costs to invest the prepayment proceeds, the costs of redeeming CFD No. 2004-3 City of Lake Elsinore CFD No. 2004-3 (IA No.2) December 16,2004 (Amended May 23,2006) Page 12 (IA No.2) Bonds, and the costs of recording any notices to evidence the prepayment and the redemption (the "Administrative Fees and Expenses"). 13. The reserve fund credit (the "Reserve Fund Credit") shall equal the lesser of: (a) the expected reduction in the reserve requirement (as defined in the Indenture), if any, associated with the redemption of Previously Issued Bonds as a result of the prepayment, or (b) the amount derived by subtracting the new reserve requirement (as defined in the Indenture) in effect after the redemption of Previously Issued Bonds as a result of the prepayment from the balance in the reserve fund on the prepayment date, but in no event shall such amount be less than zero. No Reserve Fund Credit shall be granted if the amount then on deposit in the reserve fund for the Previously Issued Bonds is below 100% of the reserve requirement (as defined in the Indenture). 14. If any capitalized interest for the Previously Issued Bonds will not have been expended as of the date immediately following the first interest and/or principal payment following the current Fiscal Year, a capitalized interest credit shall be calculated by multiplying the larger quotient computed pursuant to paragraph 3(a) or 3(b) by the expected balance in the capitalized interest fund or account under the Indenture after such first interest and/or principal payment (the "Capitalized Interest Credit"). 15. The Special Tax prepayment is equal to the sum of the amounts computed pursuant to paragraphs 4, 5, 7, 11 and 12, less the amounts computed pursuant to paragraphs 13 and 14 (the "Prepayment Amount"). From the Prepayment Amount, the amounts computed pursuant to paragraphs 4, 5, 11, 13 and 14 shall be deposited into the appropriate fund as established under the Indenture and be used to retire CFD No. 2004-3 (IA No.2) Bonds or make debt service payments. The amount computed pursuant to paragraph 7 shall be deposited into the Improvement Fund. The amount computed pursuant to paragraph 12 shall be retained by CFD No. 2004-3 (IA No.2). The Special Tax Prepayment Amount may be insufficient to redeem a full $5,000 increment ofCFD No. 2004-3 (IA No.2) Bonds. In such cases, the increment above $5,000 or integral multiple thereof will be retained in the appropriate fund established under the Indenture to be used with the next prepayment ofCFD No. 2004-3 (IA No.2) Bonds or to make debt service payments. As a result of the payment of the current Fiscal Year's Special Tax levy as determined under paragraph 9 (above), the CFD Administrator shall remove the current Fiscal Year's Special Tax levy for such Assessor's Parcel from the County tax rolls. With respect to any Assessor's Parcel that is prepaid, the City Council shall cause a suitable notice to be recorded in compliance with the Act, to indicate the prepayment ofthe Special Tax and the release of the Special Tax lien on such Assessor's Parcel, and the obligation of such Assessor's Parcel to pay the Special Tax shall cease. City of Lake Elsinore CFD No. 2004-3 (IA No.2) December 16, 2004 (Amended May 23, 2006) Page 13 Notwithstanding the foregoing, no Special Tax prepayment shall be allowed unless, at the time of such proposed prepayment, the amount of Maximum Special Taxes that may be levied on Taxable Property within CFD No. 2004-3 (IA No.2) both prior to and after the proposed prepayment is at least equal to the sum of (i) the Administrative Expenses and (ii) 1.10 times maximum annual debt service, in each remaining Fiscal Year on the Outstanding Bonds. 2. Prepayment in Part The Special Tax on an Assessor's Parcel of Developed Property or an Assessor's Parcel of Undeveloped Property for which a building permit has been issued may be partially prepaid. The amount of the prepayment shall be calculated as in Section H.1; except that a partial prepayment shall be calculated according to the following formula: PP = [(PE - A) x F] + A These terms have the following meaning: PP = the partial prepayment. PE = the Special Tax Prepayment Amount calculated according to Section H.1. F = the percentage, expressed as a decimal, by which the owner of the Assessor's Parcel is partially prepaying the Special Tax. A = the Administrative Fees and Expenses calculated according to Section H.1. 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 and the percentage by which the Special Tax shall be prepaid. The CFD Administrator shall provide the owner with a statement of the amount required for the partial prepayment of the Special Tax for 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 H.1, and (ii) indicate in the records of CFD No. 2004-3 (IA No.2) that there has been a partial prepayment of the Special Tax and that a portion of the Special Tax with respect to such Assessor's Parcel, equal to the outstanding percentage (1.00 - F) of the remaining Maximum Special Tax, shall continue to be levied on such Assessor's Parcel pursuant to Section D. I. TERM OF SPECIAL TAX The Special Tax shall be levied for a period not to exceed forty years commencing with Fiscal Year 2005-2006, provided however that Special Taxes will cease to be levied in an earlier Fiscal Year if the CFD Administrator has determined (i) that all required interest and principal payments on the CFD No. 2004-3 (IA No.2) Bonds have been paid; and (ii) all Authorized Facilities have been constructed. City of Lake Elsinore CFD No. 2004-3 (IA No.2) December 16, 2004 (Amended May 23, 2006) Page 14 ORDINANCE NO. 1220 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, ADDING CHAPTER 17.18 OF THE LAKE ELSINORE MUNICIPAL CODE REGARDING THE R- M-R: RURAL MOUNTAINOUS RESIDENTIAL DISTRICT AND ADOPTION OF A NEGATIVE DECLARATION THEREFOR WHEREAS, Section 65860 of the California Government Code requires that a city's zoning ordinance be consistent with the city's general plan and that in the event that a zoning ordinance becomes inconsistent with a general plan by reason of amendment to the plan, or to any element of the plan, the zoning ordinance shall be amended within a reasonable time so that it is consistent with the general plan; and WHEREAS, the Lake Elsinore General Plan contains a land use designation of Mountainous (M), which permits one (1) residential dwelling unit per ten (10) acres, for residential development in areas containing steep slopes, rugged terrain, limited or no access, and limited public services and utilities; and WHEREAS, the Lake Elsinore Municipal Code does not contain a zoning designation that corresponds to the General Plan Mountainous (M) designation; and WHEREAS, the City Council desires to create a new zoning designation to provide development guidelines for properties that are designated as Mountainous (M) in the City's General Plan; and WHEREAS, in accordance with Title 14 of the California Code of Regulations, Section 15070, the City of Lake Elsinore prepared a proposed negative declaration to analyze the potential environmental impacts associated with the City's adoption of the R-M-R Ordinance; and WHEREAS, on April 3, 2007, the Lake Elsinore Planning Commission reviewed and analyzed the proposed R-M-R Ordinance and made a recommendation to the City Council that the Ordinance be adopted; and WHEREAS, the City Council is responsible for making decisions regarding zoning ordinances; and WHEREAS, public notice of the R-M-R Ordinance has been given, and the City Council has considered evidence presented by the Community Development CITY COUNCIL ORDINANCE NO. 1220 PAGE 2 OF 13 Department and other interested parties at a public hearing held with respect to this item on April 24, 2007. THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE DOES ORDAIN AS FOLLOWS: SECTION 1. The City Council considered the proposed Negative Declaration before making its decision to approve the environmental document. SECTION 2. The City Council hereby finds and determines that in accordance with Title 14 of the California Code of Regulations, Section 15070 it was appropriate to prepare a Negative Declaration for the R-M-R Ordinance because the initial study showed that there was no substantial evidence, in light of the whole record, that the project may have a significant effect on the environment. The purpose of the R-M-R Ordinance is to bring the Zoning Code into conformity with the City's General Plan. Impacts associated with development of future projects that have an R-M-R zoning designation will be analyzed as part of those particular projects. SECTION 3. In accordance with Government Code Section 65855, the City Council sets forth the following reasons to approve the proposed R-M-R Ordinance: 1. Currently, the Lake Elsinore Municipal Code does not have a zoning designation that is consistent with the General Plan Mountainous (M) designation. As a result, the City has not established development standards, including density and intensity of development, to guide new construction on those parcels with a General Plan Mountainous (M) designation. As development in the City continues, it will be necessary to have standards applicable to the General Plan Mountainous (M) designation. Adoption of the R-M-R Ordinance brings the Zoning Code into conformity with the General Plan. 2. The R-M-R Ordinance will provide opportunities to create extremely low density residential development in areas containing steep slopes, rugged terrain, limited or no access, and limited public services and utilities. CITY COUNCIL ORDINANCE NO. 1220 PAGE 3 OF 13 3. The R-M-R Ordinance will permit one (1) residential dwelling unit per ten (10) acres of land. SECTION 4. The City Council hereby adds Chapter 17.18 to the Lake Elsinore Municipal Code as follows: Chapter 17.18 R-M-R: RURAL MOUNTAINOUS RESIDENTIAL DISTRICT Sections: 17.18.010 17.18.020 17.18.030 17.18.040 17.18.050 17.18.060 17.18.070 17.18.080 17.18.090 17.18.100 17.18.110 17.18.120 17.18.130 17.18.140 17.18.150 Purpose. Permitted uses. Uses subject to a conditional use permit. Accessory uses. Lot area. Street frontage width. Lot dimensions. Setbacks. Lot coverage. Building height. Minimum dwelling unit size. Animals. Parking. Signs. Design review. 17.18.010. Purpose. The R-M-R District is intended to provide for the development of extremely low density single family residences in accordance with the General Plan designation of Mountainous (M). Residential development in the R-M-R District is reserved primarily for those areas of the City that are marked by steep slopes, rugged terrain, limited or no access, and limited public services and utilities. A standard R-M-R District lot is a large rural estate lot that incorporates a significant amount of permanent open space. 17.18.020. Permitted Uses. Uses permitted in the R-M-R District shall include those uses listed below when developed in compliance with the purpose and intent CITY COUNCIL ORDINANCE NO. 1220 PAGE 4 OF 13 of this Chapter 17.18. Each use shall be evaluated in terms of its design characteristics and specific site location pursuant to the provisions of Chapter 17.82. A. Accessory uses and structures pursuant to Section 17.18.040. B. Agriculture/open space uses. C. Alcoholism or drug abuse recovery or treatment facilities for six or fewer people, subject to approval by the State Department of Social Services, Community Care Licensing Division. D. Facilities for six or fewer mentally disordered, handicapped, or dependent or neglected children, subject to approval by the State Department of Social Services, Community Care Licensing Division. E. Government buildings and service facilities. F. Granny flats. G. Guest houses. H. Manufactured houses in compliance with the provisions of Chapter 17.14. I. Public libraries. J. Public parks and/or playgrounds. K. Public utility distribution and transmission facilities. L. Residential care facilities for six or fewer elderly people, subject to approval by the State Department of Social Services, Community Care Licensing Division. M. Secondary dwelling units. N. Single-family detached dwelling units; one dwelling unit per lot. CITY COUNCIL ORDINANCE NO. 1220 PAGE 5 OF 13 O. Small family day care homes, subject to approval by the State Department of Social Services, Community Care Licensing Division. P. Structures and installations necessary to the conservation and development of water resources and! or the control of flooding. Q. Temporary real estate tract offices. 17.18.030. Uses subject to a conditional use permit. Certain uses, while similar in characteristics to Permitted Uses set forth in Section 17.18.020, may have the potential to impact surrounding properties and therefore require additional review, consideration, and approval by the City. The following uses shall be permitted in the R-M-R District subject to the issuance of a conditional use permit: A. Alcoholism or drug abuse recovery or treatment facilities for seven or more people, subject to approval by the State Department of Social Services, Community Care Licensing Division. B. Archery ranges. C. Bed and breakfast establishments. D. Cemeteries. E. Community centers and recreational buildings located on a site at least one (1) acre in size. F. Country clubs. G. Day care centers. H. Educational institutions. 1. Emergency shelters. J. Facilities for seven to twelve mentally disordered, handicapped, or dependent or neglected children people, subject to approval by the State Department of Social Services, Community Care Licensing Division. CITY COUNCIL ORDINANCE NO. 1220 PAGE 6 OF 13 K. Fishing lakes. L. Fruit and vegetable stands. M. Golf courses and driving ranges. N. Guest ranches. O. Hunting clubs. P. Keeping of exotic animals, as defined in Chapter 6.04.010 of the Lake Elsinore Municipal Code, as pets only and not for commercial purposes, so long as the exotic animal is kept on the same lot as a permitted dwelling. Potentially dangerous or vicious exotic animals, meaning any exotic animal that has bitten a person or animal without provocation or that has a disposition or propensity to attack or bite any person or animal, shall be prohibited. The Planning Commission shall impose adequate limitations to assure that the residential character of the property and neighborhood are maintained. Q. Kennels. R. Large family day care homes, subject to approval by the State Department of Social Services, Community Care Licensing Division. S. Nurseries and garden supply stores. T. Preschools, elementary, middle, junior, and high schools located on a site at least one (1) acre in size. U. Public museums and art galleries (not for profit). V. Recreational vehicle parks. W. Religious institutions. X. Residential care facilities for seven or more elderly people, subject to approval by the State Department of Social Services, Community Care Licensing Division. CITY COUNCIL ORDINANCE NO. 1220 PAGE 7 OF 13 Y. Riding academies and commercial stables. Z. Rifle, pistol, skeet or trapshooting ranges. AA. Swimming, tennis, and polo clubs. BB. Trailer and boat storage lots. CC. Transitional housing. 17.18.040. Accessory uses. The following accessory buildings and uses may be located on the same lot with a permitted dwelling, provided that they remain clearly incidental and secondary to the primary permitted use, are found to be compatible with the residential character of the neighborhood, and are harmonious with the architectural style of the main building. A. Uses: 1. Home occupations subject to the approval of a home occupation application by the Planning Department in accordance with Chapter 17.15. 2. Noncommercial hobbies. 3. Keeping of household pets, not to exceed six (6) weaned dogs and/or cats, for non-commercial purposes. For the purpose of this Chapter 17.18, a household pet is an animal clearly considered customary to a residential use, e.g. dogs, cats, birds, and fish. A household pet does not include livestock. B. Types of Accessory Structures: 1. Group 1. Sheds, children's playhouses, and similar enclosures of less than one hundred and twenty square feet (120 fe) provided they do not exceed a maximum external height of six and one-half feet (6 Y2 ft.) and that they do not encroach upon setbacks required by Section 17.18.080. CITY COUNCIL ORDINANCE NO. 1220 PAGE 8 OF 13 2. Group II. Unenclosed structures such as noncommercial stables, corrals, and appurtenant facilities for the keeping of animals, carports, gazebos, and patio covers (both trellis-type and solid) as well as detached enclosed structures not included in Group I but containing less than six hundred square feet (600 ft2) of floor area such as sheds, cabanas, children's playhouses, and workshops, provided they do not exceed a maximum height of fifteen feet (15 ft.) and do not encroach upon the setbacks required by Section 17.18.080. Attached, enclosed structures in this category, such as garages and enclosed patios, shall be located no closer to a property line than the setback prescribed for the main dwelling unit. 3. Group III. Garages, stables, enclosed patios, workshops, cabanas, and similar enclosed structures containing 600 or more square feet of floor area, provided they are located no closer than twenty feet (20 ft.) to a public right-of-way or trail, and that they do not encroach upon setbacks required by Section 17.18.080. 4. Group IV. a. Antennas, satellite dishes, and similar devices which comport with the provisions of Chapter 17.67. b. Swimming pools, jacuzzis, spas, and associated equipment provided that they are located only within rear yard areas or the enclosed portion of a side yard and that they do not encroach upon the setbacks required by Section 17.18.080. c. Trellis-type patio covers may be located in a front yard area but shall not encroach upon the required front yard setback set forth in Section 17.18.080. CITY COUNCIL ORDINANCE NO. 1220 PAGE 9 OF 13 C. Accessory Structure Guidelines: 1. Access to Accessory Structures. Accessory structures or architectural features shall be designed or constructed in a way that will not obstruct access to any primary buildings. 2. Location of Accessory Structures. Accessory structures, except for trellis-type patio covers, shall be located only in the rear and interior side yards or within the allowable buildable area of the R-M-R lot. 3. Height of Accessory Structures. Accessory structures shall not exceed the maximum building height permitted in Section 17.18.100. 4. Separation. Accessory structures shall maintain a minimum separation of at least three feet (3 ft.) from all other structures, unless attached to the main structure. Except that storage and utility structures that are larger than one hundred twenty square feet (120 ft2) shall not be located within six feet (6 ft.) of another structure. Eaves or roof overhangs may not extend more than one foot (1 ft.) into this six foot (6 ft.) area from either direction. 5. Setbacks. Accessory structures are prohibited from encroaching upon the required setbacks set forth in Section 17.18.080. See Section 17.18.080 for setback standards. 17.18.050. Lot area. The minimum lot area for any new lot created in the R- M-R District shall be ten (10) acres. 17.18.060. Street frontage width. The minimum street frontage width for any new lot created in the R-M-R District shall be as follows: A. Standard lots: One hundred sixty feet (160 ft.). B. Cul-de-sac lots: Seventy feet (70 ft.) provided that the average width is sixteen hundred feet (1600 ft.). CITY COUNCIL ORDINANCE NO. 1220 PAGE 10 OF 13 17.18.070. Lot Dimensions. For all lots in the R-M-R zoning district, the minimum lot frontage width at the front property line shall be fifty feet (50 ft.) and the minimum width at the front yard set back area shall be one hundred feet (100 ft.). 17.18.080. Setbacks. The following minimum standards shall apply to all new construction within the R-M-R District: A. Front yard: Forty feet (40 ft.). B. Side yard: 1. Main dwelling unit: Adjacent to an interior lot line there shall be a minimum side yard of thirty feet (30 ft.). Adjacent to a public right-of-way, the minimum side yard shall be forty feet (40 ft.). 2. Accessory structures: In the rear one half of the lot the setbacks for an accessory structure shall be the same as required for the main dwelling unit with the exception that if a straight-in entry garage gains access via the side yard, the setback shall be twenty-two feet (22 ft.). C. Rear yard: 1. Main dwelling unit: Fifty feet (50 ft.) 2. Accessory structures: As specified in Section 17.18.040, with the exception that where straight-in entry garage gains access via the rear yard, the setback shall be twenty-two feet (22 ft.). 17.18.090. Lot coverage. The maximum permitted lot coverage in the R-M- R District shall be ten percent (10%), except that the maximum permitted lot coverage may be increased to no more than twenty (20%) subject to issuance of a conditional use permit. CITY COUNCIL ORDINANCE NO. 1220 PAGE 11 OF 13 17.18.100. Building height. Except as otherwise provided for accessory structures, the maximum building height in the R-M-R District shall be thirty feet (30 ft.). 17.18.110. Minimum dwelling unit size. The minimum dwelling unit size within the R-M-R District shall be one thousand four hundred square feet (1400 ft2), exclusive of garage area. 17.18.120. Animals. The minimum lot area required to maintain animals pursuant to 17.18.040 shall be one (1) net acre. 17.18.130. Parking. The provisions of Chapter 17.66 shall be used to determine the required parking for development in the R-M-R District. 17.18.140. Signs. The provisions of Chapter 17.94 shall be used to guide the use of signs in the R-M-R District.17.18.150. Design review. No building permits shall be issued for the construction of any building or structure in the R-M- R District unless and until such time that the Planning Commission and/or the City Council review and approve the design of the building or structure in accordance with Chapter 17.82. SECTION 5. Based upon the above findings, the Staff Report, and documentary and oral testimony presented, the City Council hereby approves Ordinance No. 1220, adding Chapter 17.18 to the Lake Elsinore Municipal Code. SECTION 6. SEVERABILITY. If any provision, clause, sentence or paragraph of this Ordinance or the application thereof to any person or circumstance shall be held invalid, such invalidity shall not affect the other provisions of this Ordinance and are hereby declared to be severable. SECTION 7. EFFECTIVE DATE. This Ordinance shall take effect thirty (30) days after the date of its final passage. The Interim 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. CITY COUNCIL ORDINANCE NO. 1220 PAGE 12 OF 13 INTRODUCED AND APPROVED UPON FIRST READING this 24th day of April 2007, by the following vote: AYES: COUNCILMEMBERS: BUCKLEY, HICKMAN, KELLEY, SCHIFFNER, MAGEE COUNCILMEMBERS: NONE NOES: ABSENT: COUNCILMEMBERS: NONE ABSTAIN: COUNCILMEMBERS: NONE PASSED, APPROVED AND ADOPTED UPON SECOND READING this 8th day of May, 2007, upon the following roll call vote: AYES: COUNCILMEMBERS: HICKMAN, KELLEY, SCHIFFNER, MAGEE NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: BUCKLEY ABSTAIN: COUNCILMEMBERS: A1ST: l i/CM[(v ~ Michelle Soto, Interim City Clerk City of Lake Elsinore CITY COUNCIL ORDINANCE NO. 1220 PAGE 13 OF 13 Barbara Zeid Leibold, City Attorney City of Lake Elsinore ORDINANCE NO. 1221 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, APPROVING AMENDMENT NO. 2 TO THE CANYON HILLS SPECIFIC PLAN WHEREAS, Pardee Homes, has filed an application with the City of Lake Elsinore requesting approval of Amendment No. 2 to the Canyon Hills Specific Plan (the "Amendment"). The 1,969-acre Canyon Hills Specific Plan site is located between I-IS and 1-215, along Railroad Canyon Road, within the western portion of the City; and WHEREAS, the Planning Commission of the City of Lake Elsinore considered the proposed Amendment at its regularly scheduled March 20, 2007 meeting and made a recommendation that the City Council approve the proposed Amendment; and WHEREAS, the City Council of the City of Lake Elsinore is responsible for making decisions relating to the approval or amendment of specific plans; and WHEREAS, public notice of the Project has been given, and the City Council has considered the recommendation of the Planning Commission, evidence presented by the Community Development Department and other interested parties at a public hearing held with respect to this item on April 24, 2007. THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE DOES ORDAIN AS FOLLOWS: SECTION 1. Prior to making a decision, the City Council has reviewed and analyzed the Amendment pursuant to the Planning and Zoning Laws (Cal. Gov. Code ~~ 65000 et seq.) and Chapter 17.99 of the Lake Elsinore Municipal Code. SECTION 2. That in accordance with State Planning and Zoning laws and the Lake Elsinore Municipal Code, the City Council makes the following findings for the approval of Amendment No.2 to the Canyon Hills Specific Plan: 1. The location and design of the proposed development shall be consistent with the goals and policies of the City's General Plan and with any other applicable plan or policies adopted by the City. CITY COUNCIL ORDINANCE NO. 1221 PAGE20F5 The Amendment meets the City's Specific Plan criteria for content and required implementation of the General Plan established by Section 65450 et seq. of the California Government Code and Section 17.99 of the City of Lake Elsinore Municipal Code. Accordingly, the proposed Amendment is in concurrence with the objectives of the General Plan and the purpose of the planning district in which the site is located. 2. The proposed location shall allow the development to be well- integrated with or adequately buffered from its surroundings, whichever may be the case. The proposed Amendment is appropriate to the site and surrounding developments in that multi-family attached units and a school will be developed in accordance with appropriate development and design standards contained in the Canyon Hills Specific Plan Amendment No.2. The Amendment will facilitate the creation of interest and varying vistas as a person moves along the streets within and abutting the affected Planning Areas. The Amendment also complements the quality of existing neighboring development and will continue to provide visually-pleasing design and architecture within the immediate area. 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. The width and type of pavement needed to carry the type and quantity of traffic generated proposed by the proposed Amendment has been reviewed. The City has adequately evaluated the potential impacts associated with the proposed uses prior to its approval and has imposed conditions to ensure that the development is properly served by roads of adequate capacity and design standards to provide reasonable access by car, truck, transit, and bicycle. 4. The Final Specific Plan Amendment No. 2 shall identify a methodology(s) to allow land uses to be adequately serviced by existing or proposed public facilities and services. In appropriate circumstances, and as provided elsewhere by City Code, the City may require that suitable areas be reserved for schools, parks and pedestrian ways; or public open spaces shall be CITY COUNCIL ORDINANCE NO. 1221 PAGE 3 OF 5 dedicated or reserved by private covenant for the common use of residents, establishments or operations in the development. The Final Specific Plan Amendment No.2 properly identifies methodologies to allow land uses to be adequately serviced by existing or proposed public facilities and services. The Final Specific Plan Amendment No. 2 identifies necessary streets and circulation to support the proposed land use allocations, as well as all necessary wet and dry utilities for proper and adequate infrastructure services. In addition, the Final Specific Plan Amendment No. 2 identifies community and neighborhood parks for common use of the residents, public schools, and open space for dedication and preservation. 5. The overall design of Specific Plan Amendment No.2 will produce an attractive, efficient and stable development. The proposed Amendment has been designed in consideration of the size and shape of the property, thereby, strengthening and enhancing the immediate areas. The Parks ide Terrace development will complement the quality of neighboring existing and future uses and will create visually-pleasing neighborhood appeal. The proposed Amendment will not be detrimental to the health, safety, comfort or general welfare of the persons residing or working near the project area or within the City, nor will it be injurious to property or improvements in the project area or within the City. All applicable City Departments and Agencies have been afforded the opportunity for a thorough review of the proposed Amendment and have incorporated all applicable comments and/or conditions related to installation and maintenance of landscaping, street dedications, regulations of points of vehicular ingress and egress and control of potential nuisances, so as to eliminate any negative impacts to the general health, safety, comfort, or general welfare of the surrounding neighborhood or the City. 6. In accordance with the requirements of the California Environmental Quality Act (CEQA), impacts have been reduced to a level of non-significance, or in the case where impacts remain; a statement of overriding considerations must be adopted to justify the merits of project implementation. The Addendum to the Final Environmental Impact Report for the Canyon Hills Specific Plan is adequate and prepared in accordance with the requirements of the CITY COUNCIL ORDINANCE NO. 1221 PAGE 4 OF 5 California Environmental Quality Act (CEQA) which analyzes environmental effects of Canyon Hills Specific Plan Amendment No.2. SECTION 3. Based upon the above findings, the Staff Report, conditions of approval and documentary and oral testimony presented, the City Council hereby approves Amendment No.2 to the Canyon Hills Specific Plan. SECTION 4. If any provision, clause, sentence or paragraph of this Ordinance or the application thereof to any person or circumstance shall be held invalid, such invalidity shall not affect the other provisions of this Ordinance and are hereby declared to be severable. SECTION 5. This Ordinance shall take effect thirty (30) days after the date of its final passage. The Interim City Clerk shall certify as to adoption of this Ordinance and cause this Ordinance to be published and posted in the manner required by law. INTRODUCED AND APPROVED UPON FIRST READING this 24th day of April 2007, by the following vote: AYES: COUNCILMEMBERS: BUCKLEY, HICKMAN, KELLEY, SCHIFFNER, MAGEE COUNCILMEMBERS: NONE NOES: ABSENT: COUNCILMEMBERS: NONE ABSTAIN: COUNCILMEMBERS: NONE CITY COUNCIL ORDINANCE NO. 1221 PAGE 5 OF 5 PASSED, APPROVED AND ADOPTED UPON SECOND READING this 8th day of May, 2007, upon the following roll call vote: AYES: COUNCILMEMBERS: HICKMAN, KELLEY, SCHIFFNER, MAGEE NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: BUCKLEY obert E. Magee, May City of Lake Elsinore ' ABSTAIN: COUNCILMEMBERS: NONE A TTZT: (_l/rhlt &t Michelle Soto, Interim City Clerk City of Lake Elsinore ORDINANCE NO. 1222 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, AMENDING AND RESTATING CHAPTER 5.18 OF THE LAKE ELSINORE MUNICIPAL CODE REGARDING MASSEURS, MASSEUSES AND MASSAGE PARLORS WHEREAS, Chapter 5.18 of the Lake Elsinore Municipal Code regulates the masseurs, masseuses and massage parlors within the City of Lake Elsinore; and WHEREAS, the permit requirements and restrictions imposed by this amendment to Chapter 5.18 are reasonably necessary to protect the public health, safety and welfare of the citizens of the City of Lake Elsinore by providing minimum building, sanitation and health standards for those establishments in which the practice of massage is performed, and to insure that the persons offering services therein shall possess the minimum qualifications necessary to operate such businesses and to perform such services offered; and WHEREAS, the City of Lake Elsinore is authorized, by virtue of the State Constitution and California Government Code Section 51031, to regulate massage establishments by imposing reasonable standards relative to the skill and experience of massage operators and massage technicians and reasonable conditions on the operation of the massage establishment; and WHEREAS, there is a significant risk of injury to massage clients by improperly trained and/or educated massage technicians, and this amendment provides reasonable safeguards against injury and economic loss; and WHEREAS, there is opportunity for acts of prostitution and other unlawful sexual activity to occur in massage establishments. Courts have long recognized massage as a pervasively regulated activity and that massage establishments are often brothels in disguise. The establishment of reasonable standards for issuance of permits and restrictions on operations would serve to reduce the risk of illegal activity; and WHEREAS, the restrictions and requirements contained in this amendment reduce the burdens on the Police Department and permit the deployment of the police personnel such that more serious crimes may be prevented and more important laws enforced; and CITY COUNCIL ORDINANCE NO. 1222 PAGE 2 OF 36 WHEREAS, the regulations and restrictions contained in this amendment will tend to discourage massage establishments from degenerating into houses of prostitution and the means utilized in this Chapter bear a reasonable and rational relationship to the goals sought to be achieved. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, ORDAINS AS FOLLOWS: SECTION 1. That Chapter 5.18 of the Lake Elsinore Municipal Code is hereby amended and restated as follows: CHAPTER 5.18 MASSAGE TECHNICIANS AND MASSAGE ESTABLISHMENTS 5.18.010 Findings and purpose. The permit requirements and restrictions imposed by this Chapter are reasonably necessary to protect the public health, safety and welfare of the citizens of the City of Lake Elsinore by providing minimum building, sanitation and health standards for those establishments in which the practice of massage is performed, and to insure that the persons offering services therein shall possess the minimum qualifications necessary to operate such businesses and to perform such services offered. 5.18.020 Definitions. As used in this Chapter, the following terms shall have the meanings set forth herein:. "City Council" means The City Council of the City of Lake Elsinore. "City Manager" means the City Manager of the City of Lake Elsinore or his or her designated representative. "Conviction" or "convicted" means a plea or verdict of guilty or a conviction following a plea of nolo contendere. "Customer areas" means the areas open to customers of the massage establishment. "Employ" means the term "employ" shall include contracting with independent contractors. CITY COUNCIL ORDINANCE NO. 1222 PAGE 3 OF 36 "Employee" means the term "employee" shall include independent contractors. "Health department" means the Health Services Agency of the County of Riverside. "Manager" means the person( s) designated by the operator of the massage establishment to act as the representative and agent of the operator in managing day-to-day operations with the same liabilities and responsibilities. Evidence of management includes, but is not limited to, evidence that the individual has power to direct or hire and dismiss employees, control hours of operation, create policy or rules or purchase supplies. A manager may also be an owner. A manager must meet the standards and qualifications of Sections 5.18.060 et seq. to qualify as a manager. "Massage" means any method of treating the external parts of the body for remedial, hygienic, relaxation or any other reason or propose, whether by means of pressure on, friction against or stroking, kneading, tapping, pounding, vibrating, rubbing or other manner of touching external parts of the body with the hands or with the aid of any mechanical or electrical apparatus or appliance with or without supplementary aids such as rubbing alcohol, liniment, antiseptic, oil, powders, creams, ointment or other similar preparations commonly used in this practice. "Massage establishment" means any business conducted within the City of Lake Elsinore where any person, firm, association, partnership, corporation or combination of individuals engages in, conducts, carries on or permits to be conducted or carried on, for money or any other consideration, administration to another person of a massage, bath or health treatment involving massages or baths. A massage establishment is a personal service establishment within the meaning of Section 17.44.020 of the Lake Elsinore Municipal Code. "Massage establishment permit" means the permit required pursuant to the provisions of this Chapter to operate or manage a massage establishment or home occupation massage business. "Massage technician" means any person who administers to another person a massage within a massage establishment in exchange for anything of value whatsoever. The terms "massage therapist" and "massage practitioner" are included within this definition for purposes of this Chapter. CITY COUNCIL ORDINANCE NO. 1222 PAGE 4 OF 36 "Operator" means all persons who have an ownership interest in the massage establishment or home occupation massage business and are responsible for its day-to-day operations. "Owner" means the individual(s) whose name appears on the city business license. "Person" means any individual, or corporation, partnership, association or other group or combination of individuals acting as an entity. "Police Chief' means the Police Chief of the City of Lake Elsinore or his or her designated representative. "Police Department" means the Police Department and code enforcement division of the City of Lake Elsinore. "Recognized school of massage" mean any school or institution of learning which teaches, through state certified instructors, the theory, ethics, practice, profession or work of massage, which school or institution complies with the California Education Code, and which requires a resident course of study before the student shall be furnished with a diploma or certificate of graduation. Schools offering a correspondence course not requiring actual attendance shall not be deemed recognized schools. 5.18.030 Massage establishment permit required. No person shall operate a massage establishment within the city without first obtaining a massage establishment permit pursuant to Sections 5.18.040 and 5.18.050, securing the necessary business license as required pursuant to Title 5. 5.18.040 Application for massage establishment permit. (A) Any person desiring a permit for a massage establishment shall file a written application on the required form with the Police Chief, who shall conduct an investigation. The application shall be accompanied by the appropriate filing fee established by resolution of the City Council. The application shall be completed and signed by the operator of the proposed massage establishment, if a sole proprietorship; one general partner, if the operator is a partnership; one officer or one director, if the operator is a corporation; and one participant, if the operator CITY COUNCIL ORDINANCE NO. 1222 PAGE 5 OF 36 is a joint venture. The application for permit does not authorize operation of a massage establishment unless and until such permit has been properly granted. The application shall contain or be accompanied by the following information: 1. The type of ownership of the business; for example, whether by individual, partnership, corporation or otherwise. If the applicant is a corporation, the name of the corporation shall be set forth exactly as shown in its articles of incorporation or charter, together with the state and date of incorporation and the names and residence addresses of each of its current officers and directors, and of each stockholder holding more than five percent of the stock of that corporation. If the applicant is a partnership, the application shall set forth the name and residence of each of the partners, including limited partners. If it is a limited partnership, it shall furnish a copy of its certificate of limited partnership filed with the secretary of state. If one or more of the partners is a corporation, the provisions of this subsection pertaining to corporations shall apply. The applicant corporation or partnership shall designate one of its officers or general partners to act as its responsible managing officer. Such designated persons shall complete and sign all application forms required for an individual applicant under this Chapter, but only one application fee shall be charged; 2. The precise name under which the massage establishment is to be conducted; 3. The complete address and all telephone numbers of the massage establishment; 4. A complete current list of the names and residence addresses of all proposed massage technicians and employees in the massage establishment and the name and residence addresses of the manager or managing employee proposed to be principally in charge of the operation of the massage establishment; 5. A description of any other business operated on the same premises or within the City of Lake Elsinore or the State of California which is owned or operated by the applicant; 6. The following personal information concernmg the applicant: CITY COUNCIL ORDINANCE NO. 1222 PAGE 6 OF 36 a. Full complete name and all aliases used by the applicant; b. Current address and all previous residential addresses for eight years immediately preceding the present address of the applicant; c. Acceptable proof that the applicant is at least 18 years of age; d. Proof of legal residency and/or the ability to legally work in the United States; e. Height, weight, color of hair, eyes and gender; f. Current address and all previous residential addresses for eight years immediately preceding the present address of the applicant; g. Two front-faced portrait photographs at least two inches by two inches in size; h. The applicant's complete business, occupation and employment history for eight years preceding the date of application, including, but not limited to, the massage or similar business history and experience of the applicant; i. The complete massage permit history of the applicant, whether such person has ever had any permit or license issued by any agency, board, city, county, territory or state; the date of issuance of such a permit or license, whether the permit or license was denied, revoked or suspended; and the reason therefore; j. All criminal convictions, including pleas of nolo contendere, within the last ten years, including those dismissed or expunged pursuant to California Penal Code Section 1203.4, but excluding minor traffic violations, and the date and place of each such conviction and reason therefore; k. A complete set of fingerprints taken by the Police Department; CITY COUNCIL ORDINANCE NO. 1222 PAGE 7 OF 36 7. The name and address of the owner and lessor of the real property upon or in which the business is to be conducted. In the event the applicant is not the legal owner of the property, the application must be accompanied by a copy of the lease and a notarized acknowledgment from the owner of the property that a massage establishment will be located on his or her property ; 8. Authorization for the city, its agents and employees to seek verification of the information contained in the application; 9. Such other identification and information as the Police Chief may require in order to discover the truth of the matters herein specified and as required to be set forth in the application; 10. A statement in writing and dated by the applicant that he or she certifies under penalty of perjury that all information contained in the application is true and correct; 11. Statements in writing and dated by the applicant and the applicant's designated manager(s) certifying under penalty of perjury that they: a. Have received a copy of this Chapter; b. Understand its contents; and c. Understand the duties of an operator or manager, as the case may be, as provided in this Chapter. If, during the term of a permit, the permit holder has any change in information submitted on the original or renewal application, the permit holder shall notify the Police Department of such change, within ten business days thereafter, in writing. 5.18.050 Massage establishment permit issuance and denial. A. Upon receipt of a written application for a permit, the Police Chief shall conduct an investigation to ascertain whether such permit should be issued as requested. The Police Chief shall, within 60 days of receipt of an application, approve, conditionally approve or deny the application. The 60-day period may be extended for up to 30 additional days, if necessary, to complete the investigation. The Police Chief shall issue such permit as requested, unless he or she makes any of the following findings: CITY COUNCIL ORDINANCE NO. 1222 PAGE 8 OF 36 1. The applicant, if an individual, or any of the officers or directors of the corporation, if the applicant is a corporation; or a partner, if the applicant is a partnership, or any person directly engaged or employed in the massage establishment, has within ten years preceding the date of the application: a. Been convicted of a violation of California Penal Code Sections 266h, 266i, 314, 315, 316, 318, 647(a) or (b) or any other provision of law pursuant to which a person is required to register under the provisions of California Penal Code Section 290 or when the prosecution accepted a plea of guilty or nolo contendere to a charge of a violation of California Penal Code Section 415 or any lesser included or lesser related offense in satisfaction of, or as a substitute of, any of the previously listed crimes; b. Been convicted of a violation of California Health and Safety Code Section 11550 or any offense involving the illegal sale, distribution or possession of a controlled substance specified in California Health and Safety Code Sections 11054, 11055, 11056, 11057 or 11058; c. Been convicted of any offense in any other state which is the equivalent of any of the above- mentioned offenses; d. Been engaged in conduct in another jurisdiction which, if it had occurred within the city, would constitute grounds for denial, suspension or revocation under this Chapter; e. Been subjected to a permanent injunction against the conducting or maintaining of a nuisance pursuant to California Penal Code Sections 11225 through 11235 or any similar provisions of law in a jurisdiction outside the State of California; f. Engaged in conduct which would constitute an offense as described in subsection A.l.a. of this section; g. Committed an act in another jurisdiction which, if committed in this state, would have been a violation of law and which, if done by a permittee under this Chapter, would be grounds for denial, suspension or revocation of the permit; h. Been convicted of an act involving theft, dishonesty, fraud, deceit or moral turpitude or an act of violence, which act or acts CITY COUNCIL ORDINANCE NO. 1222 PAGE 9 OF 36 are related to the qualifications, functions or duties of the operator of a massage establishment; i. The applicant has had a massage operator or massage technician permit or other similar license or permit denied, suspended or revoked for cause by a licensing authority or by any city, county or state; 2. The applicant has made a false, misleading or fraudulent statement or omission of fact to the city in the permit application process; 3. The application does not contain all of the information required by Section 5.18.040; 4. The massage establishment, as proposed by the applicant, does not comply with all applicable laws, including, but not limited to, health, zoning, fire and safety requirements and standards; 5. The applicant has not satisfied the requirements of this Chapter in the time specified; 6. If the application is denied for failure to comply with subsections A.2. or 3. above, the applicant may not reapply for a period of one year from the date the application was denied. B. All operators and managers shall comply with the following conditions and any other conditions specified by the Police Chief: 1. Prohibited Massage Areas. Except to the extent required, in writing, by a state-licensed medical practitioner, no massage technician, massage technician aide or other person shall massage the genitals or anal area of any patron or the breast( s) of any female patron, nor shall any operator or manager of a massage establishment allow or permit such massage. No massage operator or designated manager, while performing any task or service associated with the massage business, shall be present in any room with another person unless the person's genitals, gluteal crease, anus or, in the case of a female, her breast(s), are fully covered. 2. Names. No person granted a permit pursuant to this Chapter shall use any name or conduct business under any designation not specified in his or her permit. CITY COUNCIL ORDINANCE NO. 1222 PAGE 10 OF 36 3. Manager on Premises. All massage establishments required to be licensed under this Chapter shall have a manager on the premises at all times the massage establishment is open. The operator of each massage establishment shall file a statement with the Police Chief designating the person or persons with power to act as a manager. The operator shall also file with the Police Chief a statement, as required by Section 5.18. 040A.ll. above, signed and dated by each such designated manager certifying under penalty of perjury that they: a. Have received a copy of this Chapter; b. Understand its contents; and c. Understand the duties of a manager as provided in this Chapter. The operator and/or on-duty manager shall post, on a daily basis, the name of each on-duty manager in a conspicuous public place in the lobby of the massage establishment. The operator, or the manager in the operator's absence, shall be responsible for ensuring compliance with this Chapter. 4. Licensed Massage Technician on Premises. No licensed establishment shall be open for business without having at least one massage technician holding a current valid permit for the specific establishment on the premises and on duty at all times when the establishment is open. 5. Display of Permits and Identification Cards. The operator and/or designated manager(s) shall ensure the massage technician permit for each massage technician employed at the establishment (whether on duty or not) is conspicuously displayed in a public place in the lobby and that each massage technician is wearing or has in their possession the identification required by Section 5.18.080B.3. at all times when in the massage establishment. Such identification shall be provided to city regulatory officials upon demand. 6. Operator/Manager Responsibility. An operator and/or on- duty manager shall be responsible for the conduct of all employees while the employees are on the licensed premises. Any act or omission of any employee constituting a violation of the provisions of this Chapter shall be deemed the act or omission of the operator for purposes of determining whether the operator's license shall be revoked, suspended, denied or renewed. 7. Licensed Massage Technicians. No operator or manager shall employ any person as a massage technician who does not have a valid CITY COUNCIL ORDINANCE NO. 1222 PAGE 11 OF 36 massage technician permit issued pursuant to this Chapter. Every operator or manager shall report to the Police Chief any change of employees, whether by new or renewed employment, discharge or termination, on the form and in the manner required by the Police Chief. The report shall contain the name of the employee and the date of hire or termination. The report shall be made within five days of the date of hire or termination. The operator shall deliver the permit and photo identification card of any massage technician no longer employed by the operator to the Police Chief within five business days. 8. Clothing. All persons employed in the massage establishment shall be fully clothed at all times. Clothing shall be of a fully opaque, non- transparent material and shall provide complete covering of their genitals, pubic area, buttocks, anal area and chest area. 9. Roster of Employees. The operator and/or on-duty manager shall maintain a register of all employees, showing the name, nicknames and aliases used by the employee, home address, age, birth date, gender, height, weight, color of hair and eyes, phone numbers, social security number, date of employment and termination, if any, and duties of each employee. The above information on each employee shall be maintained in the register on the premises for a period of two years following termination. The operator and/or manager on duty shall make the register of employees available immediately for inspection by police upon demand of a representative of the Police Department at all reasonable times. 10. Outcall Massages. It shall be unlawful for any massage technician to perform any massage services in any commercial establishment other than a premises holding a valid massage establishment permit or business office occupied by the customer. 11. Insurance. Each operator shall provide the Police Chief with evidence of the insurance required by Section 5.18.090B.13. prior to the issuance of the permit during the background process. 12. Compliance with Code. The operator shall comply with all provisions of this Chapter and any applicable provisions of the Lake Elsinore Municipal Code. C. Outcall massages may be booked by the operators and/or managers of a massage establishment at locations listed in subsection B.l O. of this CITY COUNCIL ORDINANCE NO. 1222 PAGE 12 OF 36 section, so long as such outcall massages are incidental to the operation of the massage establishment and so long as the following requirements are met: 1. Identification Cards. The operator and/or manager shall ensure that, at all times while conducting business outside of the massage establishment, each massage technician wears or has in their possession the identification required by Section 5.18.080B.3. Such identification shall be provided to city regulatory officials upon demand. 2. Establishment/Operator Responsibility. The operator and/or manager shall be responsible for the conduct of all employees while they are acting on behalf of the massage establishment. Any act or omission of any employee constituting a violation of the provisions of this Chapter shall be deemed the act or omission of the operator for proposes of determining whether the operator's license shall be revoked, suspended, denied or renewed. 3. Licensed Massage Technicians. No operator and/or manager shall allow any person to act as a massage technician outside of the massage establishment who does not have a valid massage technician permit issued pursuant to this Chapter and who does not normally perform massage within the massage establishment. 4. Clothing. All persons employed by the massage establishment shall be fully clothed at all times while acting on behalf of the establishment or performing under the massage establishment permit. Clothing shall be of a fully opaque, non-transparent material and shall provide complete covering of their genitals, pubic area, buttocks, anal area and chest area. 5. Services List. The massage technician shall carry an updated list of services available and the cost of such services and shall provide it to the potential patron for their review. No massage technician shall offer or perform any service other than those posted. 6. Lighting. If massages are provided in an enclosed location, the massage technician shall ensure that each room or enclosure in which a massage is given has lighting and ventilation that complies with the Uniform Building Code. The lighting in each room or enclosure shall be activated at all times while the patron is in such room or enclosure. CITY COUNCIL ORDINANCE NO. 1222 PAGE 13 OF 36 7. Massage Tables and Chairs. Proper massage tables or massage chairs shall be utilized, which have at least two-inch thick foam pads covered with durable, washable plastic or other waterproof material. Beds, floor mattresses and waterbeds are not permitted to be used or on the premises. 8. Sterilizing Equipment. Each massage technician shall provide and maintain at the location where the massage is performed adequate equipment for disinfecting and sterilizing instruments used in massage. 9. Linen. Common use of towels or linen shall not be permitted. Towels and linen shall be laundered or changed promptly after each use. Separate cabinets or containers shall be provided for the storage of clean and soiled linen and such cabinets or containers shall be plainly marked: "clean linen" and "soiled linen". No contraception devices, i.e. condoms or other prophylactic shall be allowed on the premises or possessed by any employee. 10. Alcoholic Beverages/drugs. No person shall enter, be in or remain in any place where massages are being performed while in possession of, consuming, using or under the influence of any alcoholic beverage or controlled substance. The massage technician shall be responsible to ensure that no such person shall enter or remain in the massage area. Service of alcoholic beverages shall not be permitted. 11. Recordings. No electrical, mechanical or artificial device shall be used by the massage technician, massage technician aide or other person for audio and/or video recording or for monitoring the performance of a massage or the conversation or other sounds in the massage rooms without the knowledge or consent of the patron. 12. Coverings. The massage technician shall provide to all patrons clean, sanitary and opaque coverings capable of covering the patrons' specified anatomical areas, including the genital area, anus and female breast(s). No common use of such coverings shall be permitted, and re-use is prohibited unless adequately cleaned. 13. Records of Treatment. The operator of the massage establishment shall keep a record of the dates and hours of each treatment or service, the name and address of the patron, the name of technician administering such service and a description of the treatment or service rendered. A short medical history form shall be completed by the establishment/operator to determine if the CITY COUNCIL ORDINANCE NO. 1222 PAGE 14 OF 36 patron has any communicable diseases, areas of pain, high blood pressure or any physical condition which may be adversely affected by massage. These records shall be prepared prior to administering any massage or treatment and shall be retained for a period of 24 months after such treatment or service. These records shall be open to inspection upon demand only by officials charged with enforcement of this Chapter and for no other purpose. The Police Department shall periodically inspect the records to ensure compliance with this section. The records shall be kept at the massage establishment. The information furnished or secured as a result of any such records should be used only to ensure and enforce compliance with this Chapter or any other applicable state or federal laws, and shall remain confidential. Any unauthorized disclosure or use of such information by any officer or employee of the city shall constitute a misdemeanor. 14. Hours of Operation. The massage technician shall ensure that massages are offered only during the times offered by the massage establishment. No person shall administer a massage on an outcall basis between the hours of 8:00 p.m. and 7:00 a.m. A massage begun any time before 8:00 p.m. must nevertheless terminate at 8 :00 p.m. All customers, patrons and visitors shall be advised of these hours. 15. Advertising. No operator granted a permit under this Chapter or any massage technician operating under the permit shall place, publish or distribute or cause to be placed, published or distributed any advertising matter that depicts any portion of the human body that would reasonably suggest to prospective patrons that any service is available on an outcall basis other than those services described in this Chapter. Nor shall any operator or massage technician employ language in the text of such advertising that would reasonably suggest to a prospective patron that any service is available on an outcall basis other than those services authorized by this Chapter. 16. Discrimination. No operator or massage technician may discriminate or exclude patrons on the basis of their race, sex, religion, age, handicap or any other classification protected under federal or state laws, rules or regulations. 17. Inspections and Searches. The massage establishment operator consents to the inspection of the massage establishment by the city's building and safety, fire department, Police Department, code enforcement and the health department for the purpose of determining that the provisions of this CITY COUNCIL ORDINANCE NO. 1222 PAGE 15 OF 36 Chapter or other applicable laws or regulations are met. The massage technician consents to the inspection of the occupied massage rooms by the Police Department for the purpose of determining that the provisions of this Chapter are met upon occurrence of any of the conditions described in Section 5.18.090B.18. which would require the posting of the Notice to All Patrons as described in Section 5.18.090B. 5.18.060 Massage technician permit. No person shall perform or administer a massage or advertise to provide massage services in the City of Lake Elsinore unless such person has in effect a valid massage technician permit issued pursuant to Sections 5.18.070 and 5.18.080 of this Chapter. A massage technician shall comply with the requirements of Sections 5.18.070 and 5.18.080. 5.18.070 Application for massage technician permit. A. Any person desiring a massage technician permit shall file a written application on the required form with the Police Department. The application shall be accompanied by the appropriate filing fee established by resolution of the City Council. The application shall contain the following information: 1. A statement of the exact location at which the applicant will be working as a massage technician, including the full street address and all telephone numbers associated with the location and the name and address and the following personal information concerning the applicant: a. Full complete name and all aliases used by the applicant, along with complete residence address and telephone; b. All previous residential addresses for eight years immediately preceding the current address of the applicant; least 18 years of age; c. Acceptable written proof that the applicant is at d. Proof of legal residency and/or the ability to legally work in the United States; e. Height, weight, color of hair and eyes and gender; CITY COUNCIL ORDINANCE NO. 1222 PAGE 16 OF 36 f. Two front-faced portrait photographs at least two inches by two inches in size; g. The business, occupation and employment history of the applicant for the eight years immediately preceding the date of the application; h. The complete permit history of the applicant and whether such person has ever had any license or permit, issued by any agency, board, city or other jurisdiction, denied, revoked or suspended and the reasons therefore; 2. All criminal convictions, including pleas of nolo contendere, within the last ten years, including those dismissed or expunged pursuant to California Penal Code Section 1203.4, but excluding minor traffic violations, and the date and place of each such conviction and reason therefor; 3. A complete set of fingerprints taken by the Police Department; 4. Such other information and identification as the Police Chief may require in order to discover the truth of the matters herein specified and as required to be set forth in the application; 5. Authorization for the city, its agents and employees to seek verification of the information contained in the application; 6. A statement in writing and dated by the applicant certifying under penalty of perjury that all information contained in the application is true and correct; 7. A statement in writing and dated by the applicant certifying under penalty of perjury that he or she: a. Has received a copy of this Chapter; b. Understand its contents; and c. provided in this Chapter. Understands the duties of a massage technician as CITY COUNCIL ORDINANCE NO. 1222 PAGE 17 OF 36 - 8. If, during the term of a permit, a permit holder has any change in information submitted on the original or renewal application, the permit holder shall notify the Police Department of such change within ten business days thereafter, in writing. B. Each applicant must furnish, along with his or her photograph, an original or certified copy of a diploma or certificate and certified transcript of graduation for completion of 720 hours of instruction from an approved or recognized school of massage, wherein the method, practice, profession, theory, ethics, anatomical and physiological knowledge and practice of massage is taught by state certified instructors. The applicant must also supply a course description, an outline of material covered and a letter to the city from the school administrator verifying completion. 1. The Police Chief may consider an applicant's study of massage completed outside the State of California if proof of completion from a formalized course of study in massage practice, anatomy and/or physiology is provided with the application. Proof of completion shall include dates of study and the name, address and phone number of the school attended. 2. Any outside course of study submitted for approval shall meet the State of California's Bureau of Private Post-Secondary Vocational Education's minimum requirements and be for completion of 720 hours of on- premises training. C. The applicant must also meet and provide documentary proof of the following requirement: completed 720 hours of instruction in a massage specialty (therapeutic approach) at a recognized school of massage taught by state- certified instructors. D. The applicant must also provide documentary proof of a valid policy of insurance from a company authorized to do business in the State of California evidencing that the permittee is insured under a liability insurance policy providing minimum coverage of two million dollars ($2,000,000) for personal injury or death to one person arising out of the administration of a massage. The policy must remain in full force and effect while the massage technician license is valid and is subject to inspection and verification by the Police Department. CITY COUNCIL ORDINANCE NO. 1222 PAGE 18 OF 36 E. The applicant must be willing to participate in a written and/or practical examination conducted by the Police Department or their representative. The representative shall consist of a member(s), appointed by either the health officer or the Police Department, who are qualified by reason of education and experience concerning the methods and procedures used in the practice of massage. The health officer and/or the Police Department shall develop and establish standards and procedures for the panel governing the administration of examinations for applicants for a massage technician license in order to determine whether such applicants are competent to engage in the practice of massage, and the health officer and/or the Police Department shall exercise such supervision as may be necessary to assure compliance therewith. 5.18.080 Massage technician permit issuance and denial. A. Upon receipt of a written application for a permit, the Police Chief shall conduct an investigation in such manner as he or she deems appropriate in order to ascertain whether such permit should be issued as requested. The Police Chief shall approve, conditionally approve or deny the application within 60 days of the filing of an application. The 60-day period may be continued for an additional 30 days if necessitated by the occurrence of events beyond the control of Police Chief. The Police Chief shall issue such permit as requested, unless he or she makes any of the following findings: 1. The applicant has within ten years preceding the date of the application been convicted of any of the following: a. A violation of California Penal Code Sections 266(h), 266(i), 314, 315, 316, 318, California Penal Code Section 647 (a) or (b), or that the applicant is required to register under the provisions of California Penal Code Section 290, or when the prosecution accepted a plea of guilty or nolo contendere to a charge of a violation of California Penal Code Section 415 or any lesser included or lesser related offense in satisfaction of, or as a substitute for, any of the previously listed crimes; b. A violation of California Health and Safety Code Section 11550 or any offense involving the illegal sale, distribution or possession of a controlled substance specified in California Health and Safety Code Sections 11054, 11055, 11056, 11057 or 11058; or -- CITY COUNCIL ORDINANCE NO. 1222 PAGE 19 OF 36 c. Any offense in any other state which IS the equivalent of any of the above-mentioned offenses. 2. The applicant has engaged in conduct which would constitute an offense as described in subsection A.l.a. of this section within ten years immediately prior to the filing of any application; 3. The applicant has committed an act, which, if committed in this state would have been a violation of law and which, if done by a permittee under this Chapter, would be grounds for denial, suspension or revocation of the permit; 4. The applicant has been convicted of an act involving theft, dishonesty, fraud, deceit or moral turpitude or an act of violence, which act or acts are substantially related to the qualifications, functions or duties of a massage technician; 5. The applicant has had a massage establishment permit or massage technician's permit or other similar license or permit denied, suspended or revoked for cause by a licensing authority or by any city, county or state within ten years prior to the date of the application; 6. The applicant has knowingly made a false, misleading or fraudulent statement or omission of fact to the city in the permit application process; 7. by Section 5.18.070; The application does not contain the information required 8. The applicant failed to pass any written or practical examination given by the Police Department or health officer; 9. The applicant has not satisfied the requirements of this Chapter in the time specified; 10. If the application is denied for failure to comply with subsections A.6., 7. or 8. above, the applicant may not reapply for a period of six months from the date the application was denied. CITY COUNCIL ORDINANCE NO. 1222 PAGE 20 OF 36 B. All massage technicians shall comply with the following conditions and any other conditions specified by the Police Chief on issuance of the massage technician's permit: 1. Prohibited Massage Areas. Except to the extent required, in writing, by a state-licensed medical practitioner, no massage technician, massage technician aide or other person shall massage the genitals or anal area of any patron or the breast(s) of any female patron. No massage technician, massage technician aide or other person, while performing any task or service associated with the massage business, shall be present in any room with another person unless the person's genitals, gluteal crease, anus or, in the case of a female, her breast(s), are fully covered. 2. Covering. No massage technician shall massage any patron unless the person's genitals, gluteal crease, anus and, in the case of a female, her breast( s), are fully covered at all times while the technician or other employee is present in the same room as the patron. 3. Identification Cards. The massage technician shall wear or have in their possession a photo identification card prepared and issued by the city at all times when present in the massage establishment. Such identification shall be provided to city regulatory officials upon demand. When worn, the identification card shall be worn on outer clothing with the photo side facing out. If a massage technician changes his or her business address, he or she shall, prior to such change, obtain from the Police Chief a new photo identification card and advise the Police Department, in writing, of the new business address. 4. Massage Locations. Massage technicians shall not perform any massage at any location other than the massage establishment specified on the permit or at an outcall location booked by that massage establishment pursuant to Section 5.18.050C. 5. Names. While on duty, the massage technician shall not use any name other than that specified on the photo identification card. 6. Clothing. Massage technicians, massage technician aides and other persons shall be fully clothed at all times. Clothing shall be of a fully opaque, non-transparent material and provide complete covering of their genitals, pubic area, buttocks, anal area and chest area. CITY COUNCIL ORDINANCE NO. 1222 PAGE 21 OF 36 7. Inspections and Searches. The massage technician consents to the inspection of the massage establishment by the city's building and safety, fire department, Police Department, code enforcement and the health department for the purpose of determining that the provisions of this Chapter or other applicable laws or regulations are met. The massage technician consents to the inspection of the occupied massage rooms by the Police Department for the purpose of determining that the provisions of this Chapter are met upon occurrence of any of the conditions described in Section 5.18.090B.18., which would require the posting of the Notice to All Patrons as described in Section 5.18.090B. 5.18.090 Requirements of operation of a massage establishment. A. Facilities. 1. Structure. Massage establishments shall be located in a zoning district which permits such use. When a new massage establishment is constructed, a set of plans shall be submitted to the City of Lake Elsinore for approval and shall be accompanied by the appropriate plan check fee. 2. Signs; Display of Permits. Each operator shall post and maintain, in compliance with existing state and city laws, a readable sign identifying the premises as a massage establishment. The sign and the front of the business shall not be illuminated by strobe or flashing lights. Each operator and/or on-duty manager shall display the operator's permit in a conspicuous public place in the lobby of the massage establishment. In addition, as indicated in Section 5.18.050B.5., each operator and/or on-duty manager shall ensure the massage technician permit for each massage technician employed at the establishment (whether on-duty or not) is conspicuously displayed in a public place in the lobby, and that each massage technician is wearing or has in their possession the identification required by Section 5.18.080B.3. at all times when in the massage establishment. The operator and/or on-duty manager must also post, on a daily basis in a conspicuous public place in the lobby, the name of the operator and/or on-duty manager, as well as all on- duty massage technicians. Finally, the hours of operation must be posted in the front window and clearly visible from the outside. 3. Services List. Each operator shall post and maintain a list of services available and the cost of such services in a conspicuous public place within the premises. No operator or responsible managing employee shall permit, CITY COUNCIL ORDINANCE NO. 1222 PAGE 22 OF 36 - and no massage technician shall offer or perform, any service other than those posted. 4. Lighting. Each operator shall provide in each room where massage is given sufficient lighting and ventilation that complies with the Uniform Building Code. The lighting in each massage room shall be activated at all times while the patron is in such room or enclosure. 5. Bath Facilities. A minimum of one toilet and one separate wash basin shall be provided for patrons in each massage establishment, which basin shall provide soap or detergent and hot running water at all times and shall be located within close proximity to the area devoted to the performing of massage services. A permanently installed soap dispenser, filled with soap, and a single service towel dispenser shall be provided at the restroom hand wash sink. No bar soap can be used. A trash receptacle shall be provided in each toilet room. Showers may be provided at the operator's option. 6. Separate Rooms. If male and female patrons are to be treated simultaneously at the same massage establishment, separate massage rooms shall be provided for male and female patrons. - 7. Maintenance. All facilities for the massage establishment must be in good repair and shall be thoroughly cleaned and sanitized each day the business is in operation. All walls, floors and ceilings of each restroom and shower area shall be made smooth and easily cleanable. No carpeting shall be installed in any of these areas. 8. Massage Table. A massage table shall be provided in each massage room and the massage shall be performed on this massage table. The tables should have a minimum height of 18 inches. Two-inch thick foam pads with maximum width of four feet may be used on a massage table and must be covered with durable, washable plastic or other waterproof material. Beds, floor mattresses and waterbeds are not permitted on the premises. B. Operations. 1. Equipment. Each operator and/or on-duty manager shall provide and maintain on the premises adequate equipment for disinfecting and sterilizing instruments used in massage. CITY COUNCIL ORDINANCE NO. 1222 PAGE 23 OF 36 2. Inspections. The operator and/or on-duty manager consents to the inspection of the massage establishment by the city's building and safety department, fire department and Police Department and the county health department for the purpose of determining that the provisions of this Chapter or other applicable laws or regulations are met. a. The city's building and safety department, fire department, Police Department and the county health department may, from time to time, make an inspection of each massage establishment for the purpose of determining that the provisions of this Chapter, state law or other applicable laws or regulations are met. Routine inspections shall not occur more than twice a year, unless violations are found or complaints are received. Criminal investigations may be conducted as directed by the Police Chief. The Police Department may inspect the occupied massage rooms for the purpose of determining that the provisions of this Chapter are met upon occurrence of any of the conditions described in subsection B.I8. of this section which would require the posting of the Notice To All Patrons. During an inspection, the Police Department may verify the identity of all on-duty employees. b. Inspections of the massage establishment shall be conducted during business hours. c. A person who operates a massage establishment or his or her agent, servant or employee commits an offense if he or she refuses to permit a lawful inspection of the premises by a representative of the Police Department at any time it is occupied or open for business. 3. Linen. Common use of towels or linen shall not be permitted. Towels and linen shall be laundered or changed promptly after each use. Separate cabinets or containers shall be provided for the storage of clean and soiled linen, and such cabinets or containers shall be plainly marked: "clean linen" and "soiled linen". No contraception devices, i.e. condoms or other prophylactic shall be allowed on the premises or possessed by any employee. 4. Sterilizing Equipment. Each massage technician shall provide and maintain at the location where the massage is performed adequate equipment for disinfecting and sterilizing instruments used in massage. 5. Living Prohibited. No person or persons shall be allowed to live inside the massage establishment at any time. All living quarters shall be CITY COUNCIL ORDINANCE NO. 1222 PAGE 24 OF 36 separate from the massage establishment. No food of any kind shall be prepared for sale or sold in the establishment unless an appropriate food vending permit is granted by the County of Riverside. 6. Alcoholic Beverages/drugs. No person shall enter, be in or remain in any part of a massage establishment licensed under this Chapter while in possession of, consuming, using or under the influence of any alcoholic beverage or controlled substance. The owner, operator and manager shall be responsible to ensure that no such person shall enter or remain upon the massage establishment. Service of alcoholic beverages shall not be permitted. 7. Recordings. No electrical, mechanical or artificial device shall be used by the operator or any employee of the massage establishment for audio and/or video recording or for monitoring the performance of a massage or the conversation or other sounds in the massage rooms without the knowledge or consent of the patron. 8. Roster. The owner, operator or on-duty manager of the massage establishment shall keep a complete and current list of the names and residence addresses of all massage technicians and employees of the massage establishment and the name and residence addresses of the manager or managing employee purported to be principally in charge of the operation of the massage establishment. The above information on each employee shall be maintained in the register on the premises of the dwelling or residence out of which the home occupation massage business is conducted for a period of two years following termination. This roster shall be kept at and/or on the premises and be available for inspection by officials charged with enforcement of this Chapter. 9. Coverings. Each massage establishment shall provide to all patrons clean, sanitary and opaque coverings capable of covering the patrons specified anatomical areas, including the genital area, anus and female breast(s). No common use of such coverings shall be permitted, and re-use is prohibited unless adequately cleaned. 10. Records. Every person operating a massage establishment shall keep a record of the dates and hours of each treatment or service, the name and address of the patron, the name of technician administering such service and a description of the treatment or service rendered. A short medical history form shall be completed by the operator to determine if the patron has any CITY COUNCIL ORDINANCE NO. 1222 PAGE 25 OF 36 communicable diseases, areas of pain, high blood pressure or any physical condition which may be adversely affected by massage. These records shall be prepared prior to administering any massage or treatment and shall be retained for a period of 2 years after such treatment or service. These records shall be open to inspection upon demand only by officials charged with enforcement of this Chapter and for no other purpose. The Police Department shall periodically inspect the records to ensure compliance with this section. The records shall be kept on the premises of the massage establishment for a period of two years. The information furnished or secured as a result of any such records should be used only to ensure and enforce compliance with this Chapter or any other applicable state or federal laws and shall remain confidential. Any unauthorized disclosure or use of such information by any officer or employee of the City of Lake Elsinore shall constitute a misdemeanor. 11. Hours of Operation. The owner must advise the city, in writing, at the time of application for a permit of the business hours and any changes in hours. No person shall operate a massage establishment or administer a massage in any massage establishment or at an outcall location booked by that massage establishment pursuant to Section 5.18.050C. between the hours of 8:00 p.m. and 7:00 a.m. A massage begun any time before 8:00 p.m. must nevertheless terminate at 8 :00 p.m. All customers, patrons and visitors shall be excluded from the massage establishment during these hours and be advised of these hours. The hours of operation must be displayed in a conspicuous public place in the lobby within the massage establishment and in the front window clearly visible from the outside. 12. Advertising. No massage establishment granted a permit under this Chapter shall place, publish or distribute, or cause to be placed, published or distributed, any advertising matter that depicts any portion of the human body that would reasonably suggest to prospective patrons that any service is available other than those services described in this Chapter. Nor shall any massage establishment employ language in the text of such advertising that would reasonably suggest to a prospective patron that any service is available other than those services authorized by this Chapter. 13. Insurance. No person shall engage in, conduct or carry on the business of a massage establishment unless there is on file with the Police Department, in full force and effect at all times, documents issued by an insurance company authorized to do business in the State of California evidencing that the CITY COUNCIL ORDINANCE NO. 1222 PAGE 26 OF 36 permittee is insured under a liability insurance policy providing mInImUm coverage of two million dollars ($2,000,000) for personal injury or death to one person arising out of the operation of any massage establishment and the administration of a massage. 14. Handicapped Areas. All massage establishments must comply with all state and federal laws and regulations for handicapped customers. 15. Compliance. Proof of compliance with all applicable provisions of the Lake Elsinore Municipal Code shall be provided. 16. Doors. All front, reception, hallway or front exterior doors (except back or exterior doors used solely for employee entrance to and exit from the massage establishment) shall be unlocked during business hours, except as may be permitted by applicable law (such as the Uniform Fire Code) which allow for safety doors which may be opened from the inside when locked. No massage may be given within any cubicle, room, booth or any area within a massage establishment which is fitted with a lock of any kind (such as a locking door knob, padlock, dead bolt, sliding bar or similar device), unless the only door is an exterior door. 17. Access. No person(s) other than valid permit holders under this Chapter and customers will be allowed anywhere in the massage establishment other than the lobby/reception area during hours of operation. Entry doors to any room shall not be obstructed by any means. 18. Discrimination. No massage establishment may discriminate or exclude patrons on the basis of their race, sex, religion, age, handicap or any other classification protected under federal or state laws, rules or regulations. 19. Prohibited Massage Areas. Except to the extent required in writing by a state-licensed medical practitioner, no massage technician, massage technician aide or other person shall massage the genitals or anal area of any patron or the breast( s) of any female patron, nor shall any operator or manager of a home occupation massage business allow or permit such massage. No home occupation massage business operator, while performing any task or service associated with the massage business, shall be present in any room with another person unless the person's genitals, gluteal crease, anus or, in the case of a female, her breast(s), are fully covered. CITY COUNCIL ORDINANCE NO. 1222 PAGE 27 OF 36 '- 20. Clothing. All persons employed in a massage establishment shall be fully clothed at all times while acting on behalf of the business or performing under the massage establishment permit. Clothing shall be of a fully opaque, non-transparent material and shall provide complete covering of their genitals, pubic area, buttocks, anal area and chest area. 21. Names. No person granted a permit pursuant to this Chapter shall use any name or conduct business under any designation not specified in his or her permit. 22. Display of Permits and Identification Cards. The home occupation massage business operator shall ensure that, at all times while conducting business for the home occupation massage business, each massage technician has his or her massage technician permit in their possession and wears or has in their possession the identification required by Section 5.18.050B.3. Such identification shall be provided to city regulatory officials upon demand. 23. Access. No person(s) other than valid permit holders under this Chapter and customers will be allowed anywhere in the massage establishment other than the lobby/reception area during hours of operation. Entry doors to any room shall not be obstructed by any means. 24. Operator Responsibility. Any act or omission of any employee constituting a violation of the provisions of this Chapter shall be deemed the act or omission of the operator for purposes of determining whether the operator's license shall be revoked, suspended, denied or renewed. 25. Licensed Massage Technicians. No operator shall employ any person as a massage technician who does not have a valid massage technician permit issued pursuant to this Chapter. Every operator shall report to the Police Chief any change of employees, whether by new or renewed employment, discharge or termination, on the form and in the manner required by the Police Chief. The report shall contain the name of the employee and the date of hire or termination. The report shall be made within five days of the date of hire or termination. The operator shall deliver the permit and photo identification card of any massage technician no longer employed by the operator to the Police Chief within five days. 26. Notices. The Police Chief may require that the following notice be posted in the event that any employee of the massage establishment or CITY COUNCIL ORDINANCE NO. 1222 PAGE 28 OF 36 any person who has been aided and abetted by an employee of the massage establishment has been found, after full hearing by administrative proceeding or state court, to have violated any of the offenses listed in Sections 5.18.050 or 5.18.080K. NOTICE TO ALL PATRONS THIS MASSAGE ESTABLISHMENT AND THE MASSAGE ROOMS DO NOT PROVIDE COMPLETE PRIVACY AND ARE SUBJECT TO INSPECTION BY THE LAKE ELSINORE POLICE DEPARTMENT WITHOUT PRIOR NOTICE. a. issued by the Police Chief. b. The notices shall be conspicuously posted in a location within the massage establishment that are easily visible to any person entering the premises and in each massage room. The notice shall be so posted for 12 months following the violation of any of the offenses set forth above. The notice set forth above shall be prepared and c. The requirement for posting the notice described in this section is cumulative and in addition to all other remedies, violations and penalties set forth in this Chapter or in the ordinances, laws, rules or regulations of the City of Lake Elsinore, County of Riverside and the State of California. 5.18.100 Health certificate. A. Before issuing or renewing a certificate of registration, the Police Chief shall submit the name and address of the applicant to the county health officer and shall advise the applicant that he or she must report for examination or, alternatively, the applicant may report to a private medical doctor duly licensed to practice medicine in the State of California for examination. The Police Chief shall not issue a certificate until advised that the applicant has been examined by the county health officer or his or her private physician and has been found to be free of any contagious or communicable disease as defined in this Chapter. - B. In addition to the above requirements, upon submission of an initial application for a certificate of registration or upon annual renewal thereafter, the applicant shall submit to the Police Chief a certificate from a medical doctor stating that the applicant has, within 15 days immediately prior thereto, been CITY COUNCIL ORDINANCE NO. 1222 PAGE 29 OF 36 examined and found to be free of any contagious or communicable disease as defined in this Chapter; and if said applicant is not so found free of any contagious or communicable disease, his or her certificate of registration shall be revoked by the Police Chief. Failure to provide such health certificate shall result in revocation of certificate of registration held by applicant. C. For purposes of this Chapter, "contagious and communicable diseases" shall include tuberculosis and hepatitis A, Band C. D. Notwithstanding the above, if a person with a communicable disease wishes to be considered for licensing by the city, such individual must provide a report from an appropriate medical specialist concluding that, based upon a recent physical and review of medical records, allowing such individual to practice massage therapy would not interfere with the individual's treatment or health and that the individual's practice of massage therapy would not create a risk to patients, including patients with compromised immune systems. The report shall include any precautions recommended by the medical specialist. E. The report or certification of an appropriate medical specialist must provide a description of his or her specialty and practice and including a detailed description of the physical and medical history he or she conducted, including the results of any tests for such individual. 5.18.110 Changes of business. A. Every massage establishment operator shall report immediately to the Police Department any and all changes of ownership or management of the massage establishment or business, including, but not limited to, changes of manager or other person principally in charge, stockholders holding more than five percent of the stock of the corporation, officers, directors and partners and in any and all changes of name, style or designation under which the business is to be conducted and all changes of address or telephone numbers of the massage business. A change of location of any of the premises may be approved by the Police Chief, provided there is compliance with all applicable regulations of the City of Lake Elsinore. B. No massage technician permit or establishment permit may be sold, transferred or assigned by a permittee, or by operation of law, to any other person or persons. Any such sale, transfer or assignment, or attempted sale, transfer or assignment shall be deemed to constitute a voluntary surrender of such CITY COUNCIL ORDINANCE NO. 1222 PAGE 30 OF 36 permit and such permit shall thereafter be null and void; provided and excepting, - however, that if the permittee is a partnership and one or more of the partners should die, one or more of the surviving partners may acquire, by purchase or otherwise, the interest of the deceased partner or partners without effecting a surrender or termination of such permit, and in such case, the permit, upon notification to the Police Chief, shall be placed in the name of the surviving partners. No massage technician permit may be sold, transferred or assigned by a permittee or any operation of law to any other person or persons. 5.18.120 Fees. The City Council shall establish by resolution, and from time to time may amend, the fees for the administration of this Chapter. The City shall include in this resolution a Health Services Fee Schedule, prescribing annual fees to be paid by the operator of each massage establishment, such fees to be paid directly to the health services agency of the County of Riverside and retained by the county as reimbursement for the services related to this Chapter, if the health service agency is utilized in the written or practical examination as described in Section 5.l8.070E. Fees required by this Chapter shall be in addition to any other required fees. - 5.18.130 Exemption; existing permittees. A. The requirements of this Chapter shall have no application and no effect upon and shall not be construed as applying to any persons designated as follows: state-licensed physicians, surgeons, chiropractors, physical therapists, osteopaths or any registered or licensed vocational nurse working on the premises of, and under the direct supervision of, a state-licensed physician, surgeon, chiropractor or osteopath. Practical nurses or other persons without qualifications as massage technicians, whether employed by physicians, surgeons, chiropractors or osteopaths or not, may not give massage or massage procedures. B. Commencing on the effective date of this Chapter, all permits are to be issued in accordance with the provisions of this Chapter. C. Existing massage establishment operator's, manager's and massage technician's permits shall continue in effect until expiration. All existing massage technician permit holders shall have an additional 24 months from the effective date of this Chapter to meet and comply with the 720-hour training requirement. CITY COUNCIL ORDINANCE NO. 1222 PAGE 31 OF 36 D. Each owner or operator of a massage establishment legally doing business on the effective date of this Chapter shall apply for a permit not later than 90 days therefrom, and shall comply with all requirements which are prerequisites for issuance of a permit before such a permit may be issued. If a permit is denied for any such business, the business shall cease operation upon issuance of the Police Chiefs decision. 5.18.140 Transfer and duration of permits. A. No permit issued hereunder shall be transferable to any other person or establishment; provided, however, an additional location or change of location of a massage technician permit will be allowed upon prior written notice to the Police Chief and payment of the appropriate transfer fee. B. Permits for massage establishment operators, managers and technicians shall be renewed on a year- to-year basis, provided that the permittee continues to meet the requirements set out in this Chapter. C. Applications for the next ensuing permit shall be filed with the Police Chief before the expiration of the existing permit. Temporary permits will not be issued and renewal applications must be filed no later than 60 days prior to the expiration of the permit to prevent a lapse of the permit. D. Renewal applications shall require such information as may be required by the Police Chief to update the information contained in the original permit application. The applicant shall accompany the application for renewal with the appropriate filing fee. E. Every massage technician licensed under this Chapter shall annually complete at least 12 hours of continuing education courses in massage from schools or institutions as described in Section 5.18.070B. or C., or from equivalent organizations as determined by the Police Chief. Failure to complete such hours and submit proof of such completion in a form satisfactory to the Police Chief at the time of permit renewal shall be grounds for denial of permit renewal. The minimum requirement of 20 hours of continuing education courses to renew a permit is based on a 500-hour education recommendation for membership in the American Massage Therapists Association (AMTA). If recommended hours of education for membership in the AMT A increase, the number of continuing education hours for renewal of permits under this section shall increase in direct CITY COUNCIL ORDINANCE NO. 1222 PAGE 32 OF 36 proportion to the Increase of education hours required for membership in the AMTA. 5.18.150 Suspension, revocation, denial and appeal. A. Violation and Noncompliance. The Police Chief may refuse to renew a permit or may revoke or suspend an existing permit on the grounds that the applicant or permit holder has failed to comply with the permit conditions or other requirements of this Chapter. If a suspended permit lapses during the suspension period, a new application must be made at the end of the suspension period. In any such case, the applicant or permit holder shall have the right to appeal to the City Council in the time and manner set forth in this section. B. Revocation and Suspension of Massage Establishment or Manager Permit. 1. The Police Chief may revoke or refuse to renew an establishment or manager's permit if he or she makes any of the findings for denial of a permit under Section 5.18.050A., B.1. or B.7. upon any subsequent violation of any provision within one year following prior suspension under subsection B.2. below or upon demonstrated inability to operate or manage the massage establishment in a law abiding manner, thus necessitating action by law enforcement officers. 2. The Police Chief may suspend a massage establishment or manager's permit for a period of 30 days for each violation of Section 5.18.080B. not listed above or Section 5.18.090. C. Revocation and Suspension of Massage Technician Permit. 1. The Police Chief may revoke or refuse to renew a massage technician permit if he or she makes any of the findings for denial of a permit under Section 5.18.080A., B.1., B.2. or B.6., Section 5.18.090, or upon any subsequent violation of any provision of this Chapter within one year following a suspension under subsection C.2. below; 2. The Police Chief may suspend a massage technician permit for a period of 30 days for each violation of Section 5.18.080B. not listed above or Section 5.18.090. CITY COUNCIL ORDINANCE NO. 1222 PAGE 33 OF 36 D. Notice. When the Police Chief concludes that grounds for denial, suspension, revocation or refusal to renew a permit exist, the Police Chief shall serve the applicant or permit holder, either personally or by certified mail addressed to the business or residence address of applicant or permit holder, with a Notice of Denial or Notice of Intent to Suspend, Revoke or Refuse to Renew Permit. This notice shall state the reasons for the proposed action, the effective date of the decision, the right of the applicant or permit holder to appeal the decision to the City Council, and the decision will be final if no appeal is filed within the time permitted. E. Appeal. 1. The right to appeal to the City Council shall terminate upon the expiration of 15 days of the date of mailing of the notice. The notice of appeal is to be sent to the Police Department of the City of Lake Elsinore. 2. In the event an appeal is timely filed, the suspension or revocation shall not be effective until a final decision has been rendered by the City Council. If no appeal is filed, the suspension or revocation shall become effective upon expiration of the period for filing appeals. 3. The City Council of the City of Lake Elsinore may preside over the hearing on appeal or, in the alternative; the City Manager may appoint a hearing officer to conduct the hearing, receive relevant evidence and submit to the City Council findings and recommendations to be considered by the City Council. The City Council shall render its decision within 45 days from the date of the hearing or, in the event that a hearing officer has been appointed, within 45 days from the date on which the City Council receives the findings and recommendations of the hearing officer. The decision of the City Council shall be final. The applicant shall be entitled to notice of the basis for the proposed action, a copy of the documents upon which the decision was based and the opportunity to present contrary evidence at the hearing. If the denial is based upon failing the test, the applicant shall be entitled to review their test at the Police Department but shall not be entitled to a copy of the test. 4. Notice of the date, time and place of the hearing shall be mailed at least ten days prior to the date of the hearing, by u.S. mail, with proof of service attached, addressed to the address listed on the massage application, CITY COUNCIL ORDINANCE NO. 1222 PAGE 34 OF 36 massage technician application or the address given in the Notice of Appeal, as the case may be. 5. The following rules and evidence shall apply: a. Oral evidence shall be taken only under oath or affirmation. The hearing officer shall have authority to administer oaths and to receive and rule on admissibility of evidence; b. Each party shall have the right to call and examine witness, to introduce exhibit and to cross- examine opposing witnesses who have testified under direct examination. The hearing officer may call and examine any witness; c. Technical rules relating to evidence and witnesses shall not apply to hearings provided for in this Chapter. Any relevant evidence may be admitted if it is material and is evidence customarily relied upon by responsible persons in the conduct of their affairs, regardless of the existence of any common law or statutory rule which might make admission of such evidence improper over objection in civil actions. Hearsay testimony may be admissible and used for the purpose of supplementing or explaining any evidence given in direct examination, but shall not be sufficient in itself to support a finding unless the testimony would be admissible over objection in civil actions. The rules of privilege shall be applicable to the extent they are now or are hereafter permitted in civil actions. Irrelevant collateral, undue and repetitious testimony shall be excluded. 6. No permit granted herein shall confer any vested right to any person or business for more than the permit period. All massage operators, managers and technicians subject to this Chapter shall comply with the provisions of this Chapter as they may be amended hereafter. 5.18.160 Violation and penalty. A. Violations of this Chapter may be enforced pursuant to the provisions of Chapter 1.20. B. Any massage establishment operated, conducted or maintained contrary to the provisions of this Chapter shall be, and the same is declared to be, unlawful and a public nuisance, and the city may, in addition to or in lieu of prosecuting a criminal action hereunder, commence an action or actions, CITY COUNCIL ORDINANCE NO. 1222 PAGE 35 OF 36 proceeding or proceedings for the abatement, removal and enjoinment thereof, in the manner provided by law, and shall take such other steps and shall apply to such court or courts as may have jurisdiction to grant such relief as will abate or remove such massage establishment businesses and restrain and enjoin any person from operating, conducting or maintaining a massage establishment or contrary to the provisions of this Chapter. SECTION 2. If any provision, clause, sentence or paragraph of this Ordinance or the application thereof to any person or circumstance shall be held invalid, such invalidity shall not affect the other provisions of this Ordinance and are hereby declared to be severable. SECTION 3. This Ordinance shall take effect thirty (30) days after the date of its final passage. The City Clerk shall certify as to adoption of this Ordinance and cause this Ordinance to be published and posted in the manner required by law. INTRODUCED AND APPROVED UPON FIRST READING this 8th day of May 2007, by the following vote: AYES: COUNCILMEMBERS: HICKMAN, KELLEY, SCHIFFNER, MAGEE COUNCILMEMBERS: NONE NOES: ABSENT: COUNCILMEMBERS: BUCKLEY ABSTAIN: COUNCILMEMBERS: NONE PASSED, APPROVED AND ADOPTED UPON SECOND READING this 22ND day of May, 2007, upon the following roll call vote: AYES: COUNCILMEMBERS: BUCKLEY, HICKMAN, KELLEY, SCHIFFNER, MAGEE NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: NONE ABSTAIN: COUNCILMEMBERS: NONE CITY COUNCIL ORDINANCE NO. 1222 PAGE 36 OF 36 A T]:r' \__ Jf(lJ{Qf0 lftfo Michelle 80to, Interim City Clerk City of Lake Elsinore ORDINANCE NO. 1223 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, ACTING AS THE LEGISLATIVE BODY OF CITY OF LAKE ELSINORE COMMUNITY FACILITIES DISTRICT NO. 2003-1 (LAW ENFORCEMENT, FIRE AND PARAMEDIC SERVICES) AUTHORIZING THE LEVY OF A SPECIAL TAX WITHIN ANNEXATION AREA NO. 23 (LA LAGUNA PHASES 4 & 5) ANNEXED TO SAID DISTRICT WHEREAS, on April 10, 2007, the City Council (the "Council") of the City of Lake Elsinore, California (the "City") adopted Resolution No. 2007-46 stating its intention to annex certain property (Annexation Area No. 23 (La Laguna Phases 4 & 5) ("Annexation Area No. 23")) into City of Lake Elsinore Community Facilities District No. 2003-1 (Law Enforcement, Fire and Paramedic Services) (the "District") pursuant to the Mello-Roos Community Facilities Act of 1982, as amended, (the "Act"); and WHEREAS, notice was published as required by law relative to the intention of the Council to annex Annexation Area No. 23 into the District; and WHEREAS, on May 22, 2007 this Council held a noticed public hearing as required by law relative to the determination to proceed with the annexation of Annexation Area No. 23 into the District and the rate and method of apportionment and manner of collection of the special tax to be levied within Annexation Area No. 23 to finance certain public services; and WHEREAS, at said hearing all persons desiring to be heard on all matters pertaining to the annexation of Annexation Area No. 23 were heard and a full and fair hearing was held; and WHEREAS, the Council subsequent to said hearing adopted Resolution No. 2007-77 determining the validity of prior proceedings relative to the annexation of Annexation Area No. 23, annexed Annexation Area No. 23 into the District and authorized the levy ofa special tax within Annexation Area No. 23; and WHEREAS, the Council subsequent to said hearing adopted Resolution No. 2007-78 which called an election within Annexation Area No. 23 for May 22,2007 on the proposition of levying a special tax; and 1 CITY COUNCIL ORDINANCE NO. 1223 Page 2 of 4 WHEREAS, on May 22, 2007 an election was held within each Annexation Area No. 23 in which the eligible electors approved by more than two-thirds vote the proposition of levying a special tax. THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, ACTING AS THE LEGISLATIVE BODY OF CITY OF LAKE ELSINORE COMMUNITY FACILITIES DISTRICT NO. 2003-1 (LAW ENFORCEMENT, FIRE AND PARAMEDIC SERVICES), DOES ORDAIN AS FOLLOWS: SECTION 1. A special tax is levied within the boundaries of Annexation Area No. 23 pursuant to the formula set forth in Exhibit "A" attached hereto and incorporated by reference in an amount necessary to finance a portion of the cost of providing law enforcement, fire and paramedic services that are in addition to those provided in the territory within Annexation Area No. 23 prior to the annexation of Annexation Area No. 23 into the District, periodic costs, and costs of the tax levy and collection. SECTION 2. This legislative body is hereby further authorized each year, by resolution adopted as provided in section 53340 of the Act, to determine the specific special tax rate and amount to be levied for the next fiscal year, except that the special tax rate to be levied shall not exceed the maximum rate set forth in Exhibit "A." SECTION 3. All of the collections of the special tax shall be used as provided for in the Act and Resolution No. 2007- 77 of the Council. SECTION 4. The above authorized special tax shall be collected in the same manner as ordinary ad valorem taxes are collected and shall be subject to the same penalties and the same procedure and sale in cases of delinquency and provided for ad valorem taxes. SECTION 5. The Mayor shall sign this ordinance and the City Clerk shall attest to such signature. The City Clerk is directed to cause the title and summary or text of the this ordinance, together with the vote thereon, to be published within fifteen (15) days after its passage at least once in a newspaper of general circulation published and circulated within the territorial jurisdiction of the City, and to post at the main office of the City a certified copy of the full text of the adopted ordinance along with the names of the Council Members voting for and against the ordinance. 2 SECTION 6. If any provision, clause, sentence or paragraph of this Ordinance or the application thereof to any person or circumstance shall be held invalid, such invalidity shall not affect the other provisions of this Ordinance and are hereby declared to be severable. SECTION 7. This Ordinance relating to the levy of the special tax takes effect and shall be in force from and after thirty (30) days after the date of its final passage. A copy of this ordinance shall be transmitted to the Clerk of the Board of Supervisor of Riverside County, THE Assessor and the Treasurer-Tax Collector of Riverside County. 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. PASSED, APPROVED, AND ADOPTED at a regular meeting of the City Council of the City of Lake Elsinore, California, on this 6th day of June 2007. ROBERT E. M CITY OF LA E, MAYOR ELSINORE ATTEST: LLL~ vIVIAN M. MUNSON CITY CLERK APPROVED AS TO FORM: ~D CITY ATTORNEY CITY OF LAKE ELSINORE 3 STATE OF CALIFORNIA ) COUNTY OF RIVERSUDE )ss. CITY OF LAKE ELSINORE ) I, VIVIAN M. MUNSON, City Clerk of the City of Lake Elsinore, California, hereby certify that the foregoing Ordinance No. 1233 was introduced at a regular meeting of the City Council of the City of Lake Elsinore on the 22nd day of May 2007, and was finally passed at a regular meeting of the City Council of the City of Lake Elsinore held on the 12th day of June 2007, by the following roll call vote: AYES: MAYOR ROBERT E. MAGEE MA YOR PRO TEM DARYL HICKMAN COUNCILMEMBER THOMAS BUCKLEY COUNCILMEMBER GENIE KELLEY COUNCILMEMBER ROBERT SCHIFFNER NOES: NONE ABSENT: NONE ABSTAIN: NONE { LL~ VIVIAN M. MUNSON CITY CLERK 4 EXHIBIT A RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX 5 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 with the rate and method 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 Taxes of the District. Definitions Assessor's Parcel. A parcel of land in the District designated and assigned a discrete identifying number on a map of the 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 of a Unit that is not Developed Multi-family Property. Fiscal Year. The period beginning on July I and ending on the following June 30. 6 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 uni ts. Rate and Method of Apportionment of Maximum Annual Special Taxes As of July 1 of each Fiscal Year, commencing July 1, 2003, the City shall determine which ofthe-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 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. Duration of the Maximum Annual 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 when 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 Government Code. 7 ORDINANCE NO. 1224 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE AMENDING AND RESTATING SECTIONS 17.40.080 C., 17.44.070 C., 17.48.080 C., 17.52.090 C., 17.54.090 C., 17.56.100 C., AND 17.60.100 C. OF THE LAKE ELSINORE MUNICIPAL CODE REGARDING MINIMUM ON-SITE LANDSCAPING REQUIREMENTS IN COMMERCIAL AND INDUSTRIAL DISTRICTS WHEREAS, Sections 17.40.080 C., 17.44.070 C., 17.48.080 C., 17.52.090 C., 17.54.090 C., 17.56.100 C., and 17.60.100 C. of the lake Elsinore Municipal Code require that all commercial and industrial building sites have a minimum landscaped coverage equivalent to twenty percent (20%) of the total lot area; and WHEREAS, the City Council wishes to 1) decrease the minimum landscaped coverage in commercial zones to fifteen percent (15%) and 2) decrease the minimum landscaped coverage in industrial zones to twelve percent (12%) (the "Project"); and WHEREAS, pursuant to Section 15070 of the CEQA Guidelines (14 C.C.R. 99 15000 et seq.) a Negative Declaration was prepared for the Project explaining why the proposed text amendments will not have a significant effect on the environment. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE DOES ORDAIN AS FOLLOWS: SECTION 1. The City Council finds and determines that based on the Negative Declaration the proposed Text Amendments will not have a significant impact on the environment and hereby adopts the Negative Declaration. SECTION 2. The City Council makes the following findings for approval of the proposed text amendments: A. The proposed text amendments will not be detrimental to the health, safety, comfort, or the general welfare of the persons working or residing within the City. These revisions increase the viability of commercial and industrial development while maintaining a fair level of landscaping and will maintain the overall visual character and quality of the City. B. The proposed text amendments will not be injurious to property or improvements within the City as the proposed revisions and modifications are an overall beneficial enhancement to development in the City. The amendments apply only to new development. C. The proposed text amendments are consistent with the General Plan and Community Design Element and serve as an important link between the City's built environment and the natural environment. The new ratios for required 1 landscaping will continue to provide visual relief, cleaner air, and screens or buffers. Well-planned and maintained landscaping serves to increase property value and increases the aesthetic value to the community. The landscaping percentages are consistent with those found in the surrounding communities. SECTION 3. That Sections 17.40.080 C., 17.44.070 C., 17.48.080 C., 17.52.090 C., 17.54.090 C., 17.56.100 C., and 17.60.100 C. of the Lake Elsinore Municipal Code shall be amended and restated as follows: 17.40.080 C. Generally: All building sites shall have a minimum landscaped coverage equivalent to fifteen percent (15%) of the total lot area. Such landscaping shall be evenly distributed over the site and consist of an effective combination of trees, ground cover, and shrubbery, which may include landscaping required for setbacks or buffers. A reduction in coverage may be sought and approved during the Design Review process in recognition of quality design. For the purpose of this provision, quality considerations include the use of courtyards, atriums, creative use of ground floor public space, creative use of water elements, and the incorporation of sculpture or art work in the landscape proposal. 17.44.070 C. Generally: All building sites shall have a minimum landscaped coverage equivalent to fifteen percent (15%) of the total lot area. Such landscaping shall be evenly distributed over the site and consist of an effective combination of trees, ground cover, and shrubbery, which may include landscaping required for setbacks or buffers. A reduction in coverage may be sought and approved during the Design Review process in recognition of quality design. For the purpose of this provision, quality considerations include the use of courtyards, atriums, creative use of ground floor public space, creative use of water elements, and the incorporation of sculpture or art work in the landscape proposal. 17.48.080 C. Generally: All building sites shall have a minimum landscaped coverage equivalent to fifteen percent (15%) of the total lot area. Such landscaping shall be evenly distributed over the site and consist of an effective combination of trees, ground cover, and shrubbery, which may include landscaping required for setbacks or buffers. A reduction in coverage may be sought and approved during the Design Review process in recognition of quality design. For the purpose of this provision, quality considerations include the use of courtyards, atriums, creative use of ground floor public space, creative use of water elements, and the incorporation of sculpture or art work in the landscape proposal. 17.52.090 C. Generally: All building sites shall have a minimum landscaped coverage equivalent to fifteen percent (15%) of the total lot area. Such landscaping shall be evenly distributed over the site and consist of an effective combination of trees, ground cover, and shrubbery, which may include landscaping required for setbacks or buffers. A reduction in coverage may be sought and approved during the Design Review process in recognition of quality design. For the purpose of this provision, quality considerations include the use of courtyards, atriums, creative use of ground 2 floor public space, creative use of water elements, and the incorporation of sculpture or art work in the landscape proposal. 17.54.090 C. Generally: All building sites shall have a minimum landscaped coverage equivalent to the twelve percent (12%) of the total lot area. Such landscaping shall be evenly distributed over the site and consist of an effective combination of trees, ground cover, and shrubbery, which may include landscaping required for setbacks or buffers. A reduction in coverage may be sought and approved during the Design Review process in recognition of quality design. For the purposes of this provision, quality considerations include the use of courtyards, atriums, creative use of ground floor public space, creative use of water elements, and the incorporation of sculpture or artwork in the landscaped proposal. 17.56.100 C. Generally: All building sites shall have a minimum landscaped coverage equivalent to twelve percent (12%) of the total lot area. Such landscaping shall be evenly distributed over the site and consist of an effective combination of trees, ground cover, and shrubbery, which may include landscaping required for setbacks or buffers. A reduction in coverage may be sought and approved during the Design Review process in recognition of quality design. For the purpose of this provision, quality considerations include the use of courtyards, atriums, creative use of ground floor public space, creative use of water elements, and the incorporation of sculpture or art work in the landscape proposal. 17.60.100 C. Generally: All building sites shall have a minimum landscaped coverage equivalent to twelve percent (12%) of the total lot area. Such landscaping shall be evenly distributed over the site and consist of an effective combination of trees, ground cover, and shrubbery, which may include landscaping required for setbacks or buffers. A reduction in coverage may be sought and approved during the Design Review process in recognition of quality design. For the purpose of this provision, quality considerations include the use of courtyards, atriums, creative use of ground floor public space, creative use of water elements, and the incorporation of sculpture or art work in the landscape proposal. SECTION 4. SEVERABILITY. If any provision, clause, sentence or paragraph of this Ordinance or the application thereof to any person or circumstance shall be held invalid, such invalidity shall not affect the other provisions of this Ordinance and are hereby declared to be severable. SECTION 5. EFFECTIVE DATE. This Ordinance shall take effect thirty (30) days after the date of its final passage. The Interim 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. 3 PASSED, APPROVED, AND ADOPTED at a regular meeting of the City Council of the City of Lake Elsinore, California, on this 26th day of J ne 2007: TE'. MAYOR CITY OF LAKE E ATTEST: \ Jl&1(/ ~ MICHELLE SOTO INTERIM CITY CLERK APPROVED AS TO FORM: ~~> .Mu~ BA BARA ZEID LEIBOLD CITY ATTORNEY CITY OF LAKE ELSINORE 4 STATE OF CALIFORNIA ) COUNTY OF RIVERSUDE )ss. CITY OF LAKE ELSINORE ) I, MICHELLE SOTO, Interim City Clerk of the City of Lake Elsinore, California, hereby certify that the foregoing Ordinance No. 1224 was introduced at a regular meeting of the City Council of the City of Lake Elsinore on the 12th day of June 2007, and was finally passed at a regular meeting of the City Council of the City of Lake Elsinore held on the 26th day of June 2007, by the following roll call vote: AYES: MAYOR ROBERT E. MAGEE MAYOR PRO TEM DARYL HICKMAN COUNCILMEMBER THOMAS BUCKLEY COUNCILMEMBER GENIE KELLEY COUNCILMEMBER ROBERT SCHIFFNER NOES: NONE ABSENT: NONE ABSTAIN: NONE uG! /. . fi \ 1 .. i d~jjl ~ CHELLE SOTO INTERIM CITY CLERK 5 ORDINANCE NO. 1225 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, DESCRIBING THE REDEVELOPMENT AGENCY'S PROGRAM REGARDING EMINENT DOMAIN PURSUANT TO CALIFORNIA HEALTH & SAFETY CODE SECTION 33342.7 WHEREAS, the Redevelopment Agency of the City of Lake Elsinore ("Agency") is a community redevelopment agency duly created, established and authorized to transact business and exercise its powers, all under and pursuant to the California Community Redevelopment Law (Part 1 of Division 24, commencing with Section 33000, of the Health & Safety Code of the State of California) ("CRL"); and WHEREAS, the Agency is engaged in activities necessary and appropriate to carry out the Redevelopment Plan ("Redevelopment Plan") for the Lake Elsinore Rancho Laguna Redevelopment Project Area No. 1 ("Project Area 1") which was adopted by the Agency's legislative body, the City Council of the City of Lake Elsinore ("City Council"), by Ordinance No. 607 on September 23, 1980 and thereafter amended by Ordinance No. 624 on July 20, 1981 and Ordinance No. 987 on November 8, 1994; and WHEREAS, the Agency is engaged in activities necessary and appropriate to carry out the Redevelopment Plan for the Lake Elsinore Rancho Laguna Redevelopment Project Area NO.2 ("Project Area 2") which was adopted by the City Council by Ordinance No. 671 on July 18, 1983 and thereafter amended by Ordinance No. 987 on November 8, 1994; and WHEREAS, the Agency is engaged in activities necessary and appropriate to carry out the Redevelopment Plan for the Lake Elsinore Rancho Laguna Redevelopment Project Area No. 3 (Project Area 3") which was adopted by the City Council by Ordinance No. 815 on September 8, 1987 and thereafter amended by Ordinance No. 987 on November 8,1994; and WHEREAS, Senate Bill 53 added Section 33342.7 to the CRL requiring legislative bodies to adopt an ordinance containing a description of the Agency's program to acquire real property by eminent domain; and WHEREAS, the enactment of this Ordinance is exempt from the California Environmental Quality Act (Public Resources Code Section 21000, et seq.) ("CEQA") pursuant to CEQA Guidelines Section 15378(b)(5) (California Code of Regulations Section 15378(b )(5)) because it is an administrative activity that will not result in any potentially significant physical impacts on the environment. 1 NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE DOES ORDAIN AS FOLLOWS: SECTION 1: At present the Agency has no eminent domain authority and, consequently, has no program to acquire real property by eminent domain. SECTION 2: In order to re-establish the authority to exercise eminent domain within any part of the Project Areas, the Agency and City Council would have to amend the Redevelopment Plans in accordance with all notice and procedural requirements set forth in applicable provisions of the CRL, including Article 12 commencing with Section 33450. SECTION 3 If any provision, clause, sentence or paragraph of this Ordinance or the application thereof to any person or circumstance shall be held invalid, such invalidity shall not affect the other provisions of this Ordinance and are hereby declared to be severable. SECTION 4: This Ordinance shall take effect thirty (3) days after the date of its final passage. The Interim 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. PASSED, APPROVED, AND ADOPTED at a regular meeting of the City Council of the City of Lake Elsinore, California, on this 26th day of June 2007. . /////? /' , (. ATTEST: llJJcilLG ~ MICHELLE SOTO INTERIM CITY CLERK APPROVED AS TO FORM: ~ ~. ~- BARBARA ZEID LEIBOLD CITY ATTORNEY CITY OF LAKE ELSINORE 2 STATE OF CALIFORNIA ) COUNTY OF RIVERSUDE )ss. CITY OF LAKE ELSINORE ) I, MICHELLE SOTO, Interim City Clerk of the City of Lake Elsinore, California, hereby certify that the foregoing Ordinance No. 1225 was introduced at a regular meeting of the City Council of the City of Lake Elsinore on the 12th day of June 2007, and was finally passed at a regular meeting of the City Council of the City of Lake Elsinore held on the 26th day of June 2007, by the following roll call vote: AYES: MAYOR ROBERT E. MAGEE MAYOR PRO TEM DARYL HICKMAN COUNCILMEMBER THOMAS BUCKLEY COUNCILMEMBER GENIE KELLEY COUNCILMEMBER ROBERT SCHIFFNER NOES: NONE ABSENT: NONE ABSTAIN: NONE ( f6CiJllQ ~ MICHELLE SOTO INTERIM CITY CLERK 3 Ordinance No. 1226 NOT ISSUED 7~ LL- Vivian M. Munson, City Clerk City of Lake Elsinore - ORDINANCE NO. 1227 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA ACTING AS THE LEGISLATIVE BODY OF CITY OF LAKE ELSINORE COMMUNITY FACILITIES DISTRICT NO. 2007-1 (LAW ENFORCEMENT, FIRE AND PARAMEDIC SERVICES) AUTHORIZING THE LEVY OF A SPECIAL TAX WHEREAS, on May 22,2007, the City Council (the "Council") of the City of Lake Elsinore, California (the "City") adopted Resolution No. 2007-75 stating its intention to form the City of Lake Elsinore Community Facilities District No. 2007-1 (Law Enforcement, Fire and Paramedic Services) (the "District") pursuant to the Mello-Roos Community Facilities Act of 1982, as amended, (the "Act"); and WHEREAS, notice was published as required by law relative to the intention of the Council to form the District; and WHEREAS, on June 26, 2007 this Council held a noticed public hearing as required by law relative to the determination to proceed with the formation of the District and the rate and method of apportionment and manner of collection of the special tax to be levied within the District to finance certain public services; and WHEREAS, at said hearing all persons desiring to be heard on all matters pertaining to the formation of the District by the District were heard and a full and fair hearing was held; and WHEREAS, the Council subsequent to said hearing adopted Resolution No. 2007- 113 determining the validity of prior proceedings relative to the'formation of the District, established the District and authorized the levy of a special tax within the District; and WHEREAS, the Council subsequent to said hearing adopted Resolution No. 2007- lll/ which called an election within the District for June 26, 2007 on the proposition of levying a special tax; and WHEREAS, on June 26, 2007 an election was held within the District in which the eligible electors approved by more than two-thirds vote the proposition of levying a special tax. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, ACTING AS THE LEGISLATIVE BODY OF CITY OF 1 CITY COUNCIL ORDINANCE NO. 1227 Page 2 of 4 LAKE ELSINORE COMMUNITY FACILITIES DISTRICT NO. 2007-1 (LAW ENFORCEMENT, FIRE AND PARAMEDIC SERVICES), DOES ORDAIN AS FOLLOWS: SECTION 1. A special tax is levied within the boundaries of the District pursuant to the formula set forth in Exhibit "A" attached hereto and incorporated by reference in an amount necessary to finance a portion of the cost of providing law enforcement, fire and paramedic services that are in addition to those provided in the territory within the District prior to the formation of the District, periodic costs, and costs of the tax levy and collection. SECTION 2. This legislative body is hereby further authorized each year, by resolution adopted as provided in section 53340 of the Act, to determine the specific special tax rate and amount to be levied for the next fiscal year, except that the special tax rate to be levied shall not exceed the maximum rate set forth in Exhibit "A." SECTION 3. All of the collections of the special tax shall be used as provided for in the Act and Resolution No. 2007- 113 of the Council. SECTION 4. The above authorized special tax shall be collected in the same manner as ordinary ad valorem taxes are collected and shall be subject to the same penalties and the same procedure and sale in cases of delinquency and provided for ad valorem taxes. SECTION 5. The Mayor shall sign this ordinance and the City Clerk shall attest to such signature. The City Clerk is directed to cause the title and summary or text of the this ordinance, together with the vote thereon, to be published within fifteen (15) days after its passage at least once in a newspaper of general circulation published and circulated within the territorial jurisdiction of the City, and to post at the main office of the City a certified copy of the full text of the adopted ordinance along with the names of the Council Members voting for and against the ordinance. SECTION 6. If any provision, clause, sentence or paragraph of this Ordinance or the application thereof to any person or circumstance shall be held invalid, such invalidity shall not affect the other provisions of this Ordinance and are hereby declared to be severable. SECTION 7. This ordinance relating to the levy of the special tax takes effect and shall be in force from and after thirty (30) days after the date of its final 2 passage. A copy of this ordinance shall be transmitted to the Clerk of the Board of Supervisors of Riverside County, the Assessor and the Treasurer-Tax Collector of Riverside County. 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. PASSED, APPROVED, AND ADOPTED at a regular meeting of the City Council of the City of Lake Elsinore, California, on this 10th day of July 2007. ////./0 I ( ~ Robert E. Magee, M City Of Lake Elsino Attest: l_LLA>- Vivian M. Munson, City Clerk City of Lake Elsinore Approved As To Form: ~..L.~ ~~ eibold City Attorney 3 STATE OF CALIFORNIA ) COUNTY OF RIVERSUDE )ss. CITY OF LAKE ELSINORE ) I, VIVIAN M. MUNSON, City Clerk of the City of Lake Elsinore, California, hereby certify that the foregoing Ordinance No. 1227 was introduced at a regular meeting of the City Council of the City of Lake Elsinore on the 26th day of June 2007, and was finally passed at a regular meeting of the City Council of the City of Lake Elsinore held on the lOth day of July 2007, by the following roll call vote: AYES: Mayor Robert E. Magee Mayor Pro Tern Daryl Hickman Councilmember Thomas Buckley Councilmember Genie Kelley Councilmember Robert Schiffner NOES: NONE ABSENT: NONE ABSTAIN: NONE {~ LL~ VIVIAN M. MUNSON CITY CLERK 4 EXHIBIT A RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX CITY OF LAKE ELSINORE COMMUNITY FACILITIES DISTRICT NO. 2007-1 (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. 2007-1 (Law Enforcement, Fire and Paramedic Services) (the "District"), in accordance with the rate and method 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 Taxes of the District. Definitions Assessor's Parcel. A parcel of land in the District designated and assigned a discrete identifying number on a map of the 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 1 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 1 preceding any Fiscal Year for the construction of a Unit that is not Developed Multi-family Property. Fiscal Year. The period beginning on July 1 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 Apportionment of Maximum Annual Special Taxes As of July 1 of each Fiscal Year, commencing July 1, 2007, 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 2007-08, 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 $416 and on each Assessor's Parcel of Developed Multi-Family Property in the amount of $208 per Unit. The amount of Maximum Annual Special Taxes shall be increased annually by 2%, commencing in Fiscal Year 2008-09, and each Fiscal Year thereafter. Duration of the Maximum Annual 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 when 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 Government Code. - ORDINANCE NO. 1228 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, APPROVING RAMSGATE SPECIFIC PLAN NO. 89-1 SIXTH REVISION (SP A6) WHEREAS, the Shopoff Group filed an application with the City of Lake Elsinore to amend the Ramsgate Specific Plan No. 89-1 with a Sixth Revision (the "Specific Plan Amendment"); and WHEREAS, Government Code Section 65453(a) states that a specific plan shall be amended in the same manner as a general plan, except that a specific plan may be adopted by resolution or by ordinance and may be amended as often as deemed necessary by the legislative body; and WHEREAS, it is the policy of Lake Elsinore that Specific Plans serve as zoning mechanisms and specific plan amendments shall be approved by ordinance of the City Council; and WHEREAS, after considering the Specific Plan Amendment at a regular meeting held on July 17, 2007, the Planning Commission of the City of Lake Elsinore recommended that the City Council approve Ramsgate Specific Plan No. 89-1 Sixth Revision; and WHEREAS, public notice of the Specific Plan Amendment has been given, and the City Council has considered the Planning Commission's recommendation and evidence presented by the Community Development Department and other interested parties at a public hearing held with respect to this item on August 14, 2007. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE DOES ORDAIN AS FOLLOWS: SECTION 1. The City Council has considered the proposed Specific Plan Amendment prior to making a decision. The City Council finds and determines that the proposed Specific Plan Amendment is consistent with the goals and policies of the Lake Elsinore General Plan and the Lake Elsinore Municipal Code. SECTION 2. That in accordance with State Planning and Zoning Law and Chapter 17.99 of the Lake Elsinore Municipal Code, the City Council makes the following findings for approval of the Specific Plan Amendment: 1. The location and design of the proposed development is consistent with the goals and policies of the City's General Plan and with any other applicable plan or policies adopted by the City, or in the process of being prepared and adopted. 1 The General Plan supports the development of the Ramsgate Specific Plan. The Specific Plan Amendment adds acreage that is contiguous to the City's southern boundary into this planning area. The proposed Specific Plan Amendment has been reviewed and conditioned to enhance and update the previous revisions to the Ramsgate Specific Plan. The proposed Specific Plan Amendment has been designed to support the objectives of the Multi-Species Habitat Conservation Plan adopted by the City, by preserving habitat areas identified in the Conservation Plan. The Specific Plan Amendment has been considered and accounted for in the Draft General Plan Update. The Specific Plan Amendment is consistent with proposed land uses on its western boundary. 2. The proposed location allows the development to be well-integrated with or adequately buffered from its surroundings, whichever may be the case. The Specific Plan Amendment provides for the development of low density residential in proposed Tentative Tract Map No. 32537, which is an extension of the single-family detached residential neighborhoods adjacent to the west and under construction to the east. Development standards for a 4,600 square foot product line in Tentative Tract Map No. 35422 are proposed as part of the Specific Plan Amendment. A lot of this size is more compatible with the higher density residential, light industrial and commercial land uses proposed for properties to the west in the City's General Plan Update. 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 Traffic Impact Analysis (TlA) was prepared by Urban Crossroads in January 2007. The results of the TIA revealed that the proposed TTM 32537 would generate 699 daily trips (55 a.m. peak hour trips and 74 p.m. peak hour trips), and that the proposed TTM 35422 would generate 1,924 daily trips (151 a.m. peak hour trips and 203 p.m. peak hour trips). The City of Lake Elsinore General Plan states that the objective of the City is to "strive to maintain a minimum Level of Service 'c' at all intersections during non- peak hours and Level of Service (LOS)'D' at all intersections during peak hours to ensure that traffic delays are kept to a minimum." With the incorporation of mitigation measures in the Mitigation Monitoring and Reporting Program, the project will meet LOS '0' objective. 2 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. The Specific Plan Amendment has been reviewed and conditioned to provide adequate public services to support the anticipated development. In addition, recreational amenities, pedestrian pathways, and open space for residents in the two proposed tract maps is required by the Specific Plan Amendment. 5. The overall design of the Specific Plan shall produce an attractive, efficient and stable development. The Specific Plan Amendment will allow the construction of single family neighborhoods in the western portion of the Plan with parks, amenities, and primary and secondary access. 6. In accordance with the requirements of the California Environmental Quality Act (CEQA), impacts have been reduced to a less than significant level through adoption of mitigation measures, the Mitigation and Monitoring Program, and conditions of approval. SECTION 3. Based upon all of the evidence presented, both written and testimonial, the above findings, and the conditions of approval imposed upon the Project, the City Council hereby adopts an Ordinance amending the Ramsgate Specific Plan for a sixth revision. SECTION 4. If any provision, clause, sentence or paragraph of this Ordinance or the application thereof to any person or circumstance shall be held invalid, such invalidity shall not affect the other provisions of this Ordinance and are hereby declared to be severable. SECTION 5. 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. PASSED, APPROVED, AND ADOPTED at a regular meeting of the City Council of the City of Lake Elsinore, California, on this h ay August 2007. ATTEST: \jGUciJ& ~ MICHELLE SOTO INTERIM CITY CLERK 3 APPROVED AS TO FORM: - ~ ~\tjtvv~ BARBARA ZEID LEIBOLD CITY ATTORNEY CITY OF LAKE ELSINORE STATE OF CALIFORNIA COUNTY OF RIVERSUDE CITY OF LAKE ELSINORE -- ) )ss. ) I, MICHELLE SOTO, Interim City Clerk of the City of Lake Elsinore, California, hereby certify that the foregoing Ordinance No. 1230 was introduced at a regular meeting of the City Council of the City of Lake Elsinore on the 14th day of AUQust 2007, and was finally passed at a regular meeting of the City Council of the City of Lake Elsinore held on the 28th day of AUQust 2007, by the following roll call vote: AYES: MAYOR ROBERT E. MAGEE MAYOR PRO TEM DARYL HICKMAN COUNCILMEMBER THOMAS BUCKLEY COUNCILMEMBER GENIE KELLEY COUNCILMEMBER ROBERT SCHIFFNER NOES: NONE ABSENT: NONE ABSTAIN: NONE \_M(u~ ~ MICHELLE SOTO INTERIM CITY CLERK 4 - ORDINANCE NO. 1229 AN ORDINANCE OF THE CITY OF LAKE ELSINORE, CALIFORNIA, APPROVING PRE-ANNEXATION ZONE CHANGE NO. 2007-01 WHEREAS, the Shopoff Group has submitted an application with the City of Lake Elsinore to Pre-Zone 75.1 acres of land proposed for annexation into the City of Lake Elsinore located south of State Route 74 (Central Avenue), north of Wasson Canyon, west of Rosetta Canyon Drive, and east of Cambern and Conard Avenues (APNs 347-330-001, -002, -022, -023, -065, -067 through -074; 347-360-001 and 002; 377-100-006, -009 and -010: the "Property") which will change the City's official zoning map and designate the Property as Ramsgate SP (the "Pre-Zone"); and WHEREAS, Government Code Section 56375 indicates that as a condition to annexation, a city shall pre-zone the territory to be annexed or present evidence satisfactory to the Local Agency Formation Commission ("LAFCQ") that the existing development entitlements on the territory are vested or built-out, and are consistent with the city's general plan; and WHEREAS, the Pre-Zone conforms to and is consistent with the proposed General Plan Amendment No. 2007-01 for the Property; and WHEREAS, after considering the Pre-Zone at a regular meeting held on July 17, 2007, the Planning Commission of the City of Lake Elsinore recommended that the City Council approve Pre-Annexation Zone Change No. 2007-01; and WHEREAS, public notice of the Pre-Zone has been given, and the City Council has considered the Planning Commission's recommendation and evidence presented by the Community Development Department and other interested parties at a public hearing held with respect to this item on August 14, 2007. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE DOES ORDAIN AS FOLLOWS: SECTION 1. The City Council has considered the proposed Pre-Zone prior to making a decision to approve Pre-Annexation Zone Change No. 2007-01. SECTION 2. That in accordance with the Cortese Knox Hertzberg Local Government Reorganization Act of 2000, the State Planning and Zoning Law, and the Lake Elsinore Municipal Code, the City Council makes the following findings for the approval of Pre-Annexation Zone Change No. 2007-01: 1. The proposed zone change will not be: a) detrimental to the health, safety, comfort or general welfare of the persons residing or working within the neighborhood of the proposed zone change or within the City, or b) injurious to the property or improvements in the neighborhood or within the City. 1 - The proposed Pre-Zone has been analyzed relative to its potential to have detrimental effects. It has been determined that the health, safety and welfare of surrounding residents may be improved as a result of future improvements to infrastructure such as water, sewer, paving and drainage facilities brought to the site as a requirement of any future development. The proposed "Ramsgate SP" zoning will ensure that development standards and design guidelines of the specific plan will be consistently applied throughout the site. 2. The proposed zone change will permit reasonable development of the area consistent with its constraints and will make the area more compatible with adjacent properties. The proposed zoning of "Ramsgate SP" will allow for the continuation of the single family residential neighborhoods that already exist or are under construction to the east. 3. The proposed zone change would establish a land use density and usage more in character with the subject property's location, access, and constraints. The zone change proposes a boundary adjustment to allow for an integration of the Property with the adjacent Ramsgate Specific Plan. The zone change allows for the development of the Property in accordance with proposed Tentative Tract Map Nos. 32537 and 35422, which provide a 5.6 acre park and two small pocket parks, walking trails, water basins, and open space lots. SECTION 3. Based upon all of the evidence presented, both written and testimonial, the above findings, and the conditions of approval imposed upon the Project, the City Council approves Pre-Annexation Zone Change No. 2007-01. SECTION 4. If any provision, clause, sentence or paragraph of this Ordinance or the application thereof to any person or circumstance shall be held invalid, such invalidity shall not affect the other provisions of this Ordinance and are hereby declared to be severable. SECTION 5. 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. PASSED, APPROVED, AND ADOPTED at a regular meeting of the City Council of the City of Lake Elsinore, California, on th~s 2 ~U9Ust2007. BERT E. MAGEE MAYOR CITY OF LAKE ELSI ORE 2 - ATTEST: ~ 10cJJfLc ~ MICHELLE SOTO INTERIM CITY CLERK APPROVED AS TO FORM: ~~~ BARBARA ZEID LEIBOLD CITY ATTORNEY CITY OF LAKE ELSINORE STATE OF CALIFORNIA ) COUNTY OF RIVERSUDE )ss. CITY OF LAKE ELSINORE ) I, MICHELLE SOTO, Interim City Clerk of the City of Lake Elsinore, California, hereby certify that the foregoing Ordinance No. 1229 was introduced at a regular meeting of the City Council of the City of Lake Elsinore on the 14th day of Auqust 2007, and was finally passed at a regular meeting of the City Council of the City of Lake Elsinore held on the 28th day of Auqust 2007, by the following roll call vote: AYES: MAYOR ROBERT E. MAGEE MAYOR PRO TEM DARYL HICKMAN COUNCILMEMBER THOMAS BUCKLEY COUNCILMEMBER GENIE KELLEY COUNCILMEMBER ROBERT SCHIFFNER NOES: NONE ABSENT: NONE ABSTAIN: NONE ~ l~dJJj ~ MICHELLE SOTO INTERIM CITY CLERK 3 - ORDINANCE NO. 1230 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, ADDING CHAPTER 5.46 TO THE LAKE ELSINORE MUNICIPAL CODE REGARDING THE LICENSURE OF TOBACCO RETAILERS WHEREAS, Minors obtain cigarettes and other tobacco products at alarming rates. Each year, an estimated 924 million packs of cigarettes are consumed by minors 12 to 17 years of age, yielding the tobacco industry $480 million in profits from underage smokers nationwide. In Riverside County, 10,000 teens light up for the first time and purchase 5 million packs of cigarettes a year; and WHEREAS, In a 2004 California youth-buying survey, 12% of retailers surveyed unlawfully sold tobacco product to minors; and WHEREAS, The rate of tobacco sales to minors in Riverside County is one of the highest in the State at 44%; and WHEREAS, 88% of adults who have ever smoked tried their first cigarette by the age of 18, and the average age at which smokers try their first cigarette is 14%; and WHEREAS, A requirement for a tobacco retailer license will not unduly burden legitimate business activities of retailers who sell or distribute cigarettes or other tobacco products to adults. It will, however, allow the City to regulate the operation of lawful businesses to discourage violations of federal, state, and local tobacco-related laws; and WHEREAS, 65% of California's key opinion leaders surveyed support implementation of tobacco-licensing requirements; and WHEREAS, the City of Lake Elsinore has a substantial interest in promoting compliance with federal, state, and local laws intended to regulate tobacco sales and use; in discouraging the illegal purchase of tobacco products by minors; in promoting compliance with laws prohibiting sales of cigarettes and tobacco products to minors; and finally, and most importantly, in protecting children from being lured into illegal activity through the misconduct of adults; and WHEREAS, It is the intent of this Ordinance to encourage responsible tobacco retailing and to discourage violations of tobacco-related laws, especially those that prohibit or discourage the sale or distribution of tobacco products to minors, but not to expand or reduce the degree to which the acts regulated by federal or state law are criminally proscribed or to alter the penalty provided therefor. 1 NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, ORDAINS AS FOLLOWS: SECTION 1. That Chapter 5.46 of the Lake Elsinore Municipal Code be added as follows: Chapter 5.46 TOBACCO RETAILERS 5.46.010 . Definitions. For the purposes of this Ordinance, the following words and terms shall have the following meanings: "Arm's Length Transaction" means a sale in good faith and for valuable consideration that reflects the fair market value in the open market between two informed and willing parties, neither under any compulsion to participate in the transaction. A sale between relatives, related companies or partners, or a sale for the primary purpose of avoiding the effect of the violations of this Ordinance is presumed not to be an Arm's Length Transaction. "Department" means any City department designated to administer and/or enforce the provisions of this Chapter or, if so designated by the City Manager, the Riverside County Department of Health and Human Services or other County department. "Person" means any natural person, partnership, cooperative association, corporation, personal representative, receiver, trustee, assignee, or any other legal entity. "Proprietor" means a Person with an ownership or managerial interest in a business. An ownership interest shall be deemed to exist when a Person has a ten percent (10%) or greater interest in the stock, assets, or income of a business other than the sole interest of security for debt. A managerial interest shall be deemed to exist when a Person can or does have, or can or does share, ultimate control over the day-to-day operations of a business. "Self-Service Display" means the open display of Tobacco Products or Tobacco Paraphernalia in a manner that is accessible to the general public without the assistance of the retailer or employee of the retailer. A Vending Machine is a form of Self-Service Display. "Smoking" means possessing a lighted Tobacco Product, Tobacco Paraphernalia, or any other weed or plant (including a lighted pipe, lighted cigar, or lighted cigarette of any kind), the lighting of a Tobacco Product, Tobacco Paraphernalia, or any other weed or plant (including a pipe, cigar, or cigarette of any kind). 2 "Tobacco Paraphernalia" means cigarette papers or wrappers, pipes, holders of smoking materials of all types, cigarette rolling machines, and any other item designed for the smoking, preparation, storing, or consumption of Tobacco Products. "Tobacco Product" means (1) any substance containing tobacco leaf, including but not limited to cigarettes, cigars, pipe tobacco, snuff, chewing tobacco, dipping tobacco, bid is, or any other preparation of tobacco; and (2) any product or formulation of matter containing biologically active amounts of nicotine that is manufactured, sold, offered for sale, or otherwise distributed with the expectation that the product or matter will be introduced into the human body but does not include any product specifically approved by the Federal Food and Drug Administration for use in treating nicotine or tobacco product dependence. "Tobacco Retailer" means any Person who sells, offers for sale, or does or offers to exchange for any form of consideration, tobacco, Tobacco Products, or Tobacco Paraphernalia; "Tobacco Retailing" shall mean the doing of any of these things. This definition is without regard to the quantity of tobacco, Tobacco Products, or Tobacco Paraphernalia sold, offered for sale, exchanged, or offered for exchange. 5.46.020 Tobacco License Prerequisite; Application Process. A. It shall be unlawful for any Person to act as a Tobacco Retailer without first obtaining and maintaining a valid Tobacco Retailer's license pursuant to this Ordinance for each location at which that activity is to occur. Tobacco Retailing without a valid Tobacco Retailer's license shall constitute a public nuisance. B. A Tobacco Retailer or Proprietor without a valid Tobacco Retailer license: 1. Shall keep all Tobacco Products and Tobacco Paraphernalia from public view. 2. Shall not display any advertisement relating to Tobacco Products or Tobacco Paraphernalia that promotes the sale or distribution of such products from the Tobacco Retailer's location or that would lead a reasonable consumer to believe that such products can be obtained at the Tobacco Retailer's location. C. Nothing in this Ordinance shall be construed to grant any Person obtaining and maintaining a Tobacco Retailer's license any status or right other than the right to act as a Tobacco Retailer at the location in the City identified on the face of the license. For example, nothing in this Ordinance shall be construed to render inapplicable, supercede, or apply in lieu of any other provision of applicable law, including, without limitation, any condition or limitation on smoking in enclosed places of employment made applicable to business establishments by California Labor Code section 6404.5. D. Application for a Tobacco Retailer's license shall be submitted in the name of each Proprietor proposing to conduct retail tobacco sales and shall be signed by each Proprietor or an authorized agent thereof. It is the responsibility of each Proprietor 3 to be informed of the laws affecting the issuance of a Tobacco Retailer's license. A license that is issued in error or on the basis of false or misleading information supplied by a Proprietor shall be revoked pursuant to Section 5.46.080.0. of this Ordinance. E. In addition to any other penalty under this Ordinance, a Person found to have engaged in Tobacco Retailing without a valid Tobacco Retailer's license shall be ineligible to apply for or be issued a Tobacco Retailing license according to the following: 1. After a first violation for a Person within any sixty-month (60) period, no new license may issue for the Person as a Proprietor until thirty (30) days have passed from the date of last violation. 2. After a second violation for a Person within any sixty-month (60) period, no new license may issue for the Person as a Proprietor until ninety (90) days have passed from the date of last violation. 3. After three or more violations for a Person within any sixty-month (60) period, no new license may issue for the Person as a Proprietor until five (5) years have passed from the date of last violation. 4. Each day that a Person engages in Tobacco Retailing without a valid Tobacco Retailer's license shall constitute a separate violation. F. Tobacco Products and Tobacco Paraphernalia offered for sale or exchange in violation of this Ordinance are subject to seizure and forfeiture. Forfeited Tobacco Products and Tobacco Paraphernalia shall be destroyed. G. All applications shall be submitted on a form supplied by the Department and shall contain the following information: 1. The name, address, and telephone number of each Proprietor. 2. The business name, address, and telephone number of the single fixed location for which a Tobacco Retailer's license is sought. 3. The name and mailing address authorized by each Proprietor to receive all license-related communications and notices (the "Authorized Address"). If an Authorized Address is not supplied, each Proprietor shall be understood to consent to the provision of notice at the business address specified in subparagraph 2. above. 4. Proof that the location for which a Tobacco Retailer's license is sought has been issued a valid state tobacco retailer's license by the California Board of Equalization. 4 5. Whether or not any Proprietor is a Person who has been determined to have violated this Ordinance or has been a Proprietor at a location that has been determined to have violated this Ordinance and, if so, the dates and locations of all such violations. 6. Such other information as the Department deems necessary for the administration or enforcement of this Ordinance. 5.46.030 License Issuance; Standards. A. No license may issue to authorize Tobacco Retailing at other than a fixed location. Tobacco Retailing by Persons on foot and Tobacco Retailing from vehicles are prohibited. B. Upon the receipt of an application for a Tobacco Retailer's license and the license fee, the Department shall issue a license unless substantial record evidence demonstrates that one of the following bases for denial exists: 1. The application is incomplete or inaccurate. 2. The application seeks authorization for Tobacco Retailing at a location for which a prohibition on issuing licenses is in effect pursuant to Section 5.46.080.B. of this Ordinance. However, this subparagraph shall not constitute a basis for denial of a license if the applicant provides the City with documentation demonstrating by clear and convincing evidence that the applicant has acquired or is acquiring the location or business in an Arm's Length Transaction. 3. The application seeks authorization for Tobacco Retailing for a Proprietor for which a prohibition on issuing licenses is in effect pursuant to Section 5.46.080.E. of this Ordinance. 4. The application seeks authorization for Tobacco Retailing that is prohibited pursuant to Section 5.46.030.A. of this Ordinance, that is unlawful pursuant to any other City Ordinance, or that is unlawful pursuant to any other local, state, or federal law. 5.46.040 Licenses Nontransferable. A. Tobacco Retailer's license is nontransferable. If the information required in the license application pursuant to Section 5.46.020.G. 1, 2, or 3 changes, a new Tobacco Retailer's license is required before the business may continue to act as a Tobacco Retailer. For example, if a Proprietor to whom a license has been issued changes business location, that Proprietor must apply for a new license prior to acting as a Tobacco Retailer at the new location. Or if the business is sold, the new owner must apply for a license for that location before acting as a Tobacco Retailer. 5 B. Notwithstanding any other provision of this Ordinance, violations accumulated against a location or business shall continue to be counted against the location or business unless the location or business has been transferred to a new Proprietor and the new Proprietor provides the City with documentation demonstrating by clear and convincing evidence that the new Proprietor has acquired or is acquiring the location or business in an Arm's Length Transaction. 5.46.050 Fees For License. A. Tobacco Retailer's license is invalid unless the appropriate fee has been paid in full and the term of the license has not expired. The term of a Tobacco Retailer's license is one (1) year. Each Tobacco Retailer shall apply for the renewal of his or her Tobacco Retailer's license no later than thirty (30) days prior to expiration of the term. The Tobacco Retailer license shall be issued, administered and renewed as determined by the Department B. The City Council, may, but shall not be required to, set a license fee for a tobacco retailer license. If the City Council elects to enact a tobacco retailer license fee, the fee shall be set by City Council resolution based upon the costs to the city of administering and enforcing this Chapter. Tobacco Retailer's license shall not be issued until such time as the appropriate license fee has been paid in full. 5.46.060 Other Requirements And Prohibitions. A. DISPLAY OF LICENSE. Each license shall be prominently displayed in a publicly and readily visible location at the licensed location. B. POSITIVE IDENTIFICATION REQUIRED. No Person shall engage in Tobacco Retailing without first examining the identification of the purchaser and, if the purchaser reasonably appears under the age of twenty-seven (27) years old, confirming that the proposed sale is to a purchaser who is at least the minimum age under applicable state law for being sold the Tobacco Product or Tobacco Paraphernalia. C. MINIMUM AGE FOR PERSONS SELLING TOBACCO. No Person shall engage in Tobacco Retailing if the Person is younger than the minimum age under applicable state law for being sold or for possessing any Tobacco Product. D. SELF-SERVICE DISPLAYS PROHIBITED. No Person shall display Tobacco Products or Tobacco Paraphernalia by means of a Self-Service Display or to engage in Tobacco Retailing by means of a Self-Service Display. A Tobacco Retailer who chooses to display Tobacco Products or Tobacco Paraphernalia in a locked cabinet, case or similar structure must post a clear and conspicuous sign on or within five feet of the display stating that the cabinet, case or structure is locked at all times. 6 - 5.46.070 License Violation. A. VIOLATION OF TOBACCO-RELATED LAWS. It shall be a violation of a Tobacco Retailer's license for a licensee, including his or her agent or employee, to violate any of the following laws: 1. Any local, state, or federal tobacco-related law. 2. Local, state, or federal sign laws. 3. Local, state, or federal laws restricting the age of purchase for any product. B. LICENSE COMPLIANCE MONITORING. 1. Compliance with this Ordinance shall be monitored by the Department. Any peace officer may enforce the penal provisions of this Ordinance. 2. The Department may check the compliance of each Tobacco Retailer at any time during normal business hours and on such a regular basis as may be determined by the Department. The Department shall endeavor to check compliance of each tobacco retailers at least three (3) times per twelve (12) month period. 3. Compliance checks shall determine, at a minimum, if the Tobacco Retailer is conducting business in a manner that complies with tobacco laws regulating youth access to tobacco. When appropriate, the compliance checks shall determine compliance with other tobacco-related laws. 4. The City shall not enforce any tobacco-related minimum-age law against a Person who otherwise might be in violation of such law because of the Person's age (hereinafter "Youth Decoy") if the potential violation occurs when: a. the Youth Decoy is participating in a compliance check supervised by a peace officer or a code enforcement official; or b. the Youth Decoy is participating in a compliance check funded in part, either directly or indirectly through sub-contracting, by the County Department of Health and Human Services or funded in part, either directly or indirectly through sub-contracting, by the California Department of Health Services. C. NO CONTEST PLEA. A plea of "no contest" or its equivalent by a Tobacco Retailer for a violation of any law designated in subsection A. above shall operate as an admission that this Ordinance has been violated for the purposes of license revocation. 7 5.46.080 A. Revocation Of License. REVOCATION OF LICENSE FOR VIOLATION. 1. In addition to any other penalty authorized by law, a Tobacco Retailer's license shall be revoked if the hearing officer, as designated by the City Manager, finds, after notice to the licensee and opportunity to be heard, that the licensee, including his or her agents or employees, has violated any of the requirements, conditions, or prohibitions of this Ordinance (hereinafter "License Violation"). 2. 3. For a first or second alleged License Violation within any sixty-month (60) period, the Department may engage in settlement negotiations and may enter into a settlement agreement with a Tobacco Retailer alleged to have violated this Ordinance without approval from the City Council. Settlements shall not be confidential. B. NEW LICENSE AFTER REVOCATION FOR VIOLATION. 1. After a first License Violation at a location within any sixty-month (60) period, no new license may issue for the location until ten (10) days have passed from the date of the last revocation or violation, whichever is later. 2. After a second License Violation at a location within any sixty- month (60) period, no new license may issue for the location until thirty (30) days have passed from the date of the last revocation or violation, whichever is later. 3. After of a third License Violation at a location within any sixty-month (60) period, no new license may issue for the location until ninety (90) days have passed from the date of the last revocation or violation, whichever is later. 4. After four or more License Violations at a location within any sixty- month (60) period, no new license may issue for the location until five (5) years have passed from the date of the last revocation or violation, whichever is later. C. EXPIRATION OF LICENSE. A Tobacco Retailer's license that is not timely renewed pursuant to Section 5.46.050 shall expire at the end of its term. To reinstate a license that has expired due to the failure to timely pay the renewal fee, the Proprietor must: 1. Submit the renewal fee plus a reinstatement fee of ten percent (10%) of the renewal fee. 2. Submit a signed affidavit affirming that the Proprietor has not sold any Tobacco Product or Tobacco Paraphernalia during any period that the license was expired. 8 D. REVOCATION OF LICENSE ISSUED IN ERROR. A Tobacco Retailer's license shall be revoked if the Department finds, after notice and opportunity to be heard, that one or more of the bases for denial of a license under Section 5.46.030.B. existed at the time application was made or at anytime before the license issued. The revocation shall be without prejudice to the filing of a new application for a license. 5.46.090 Enforcement. The remedies provided by this Ordinance are cumulative and in addition to any other remedies available at law or in equity. A. Whenever evidence of a violation of this Ordinance is obtained in part through the participation of a Person under the age of eighteen (18) years old, such a Person shall not be required to appear or give testimony in any civil or administrative process brought to enforce this Ordinance and the alleged violation shall be adjudicated based upon the sufficiency and persuasiveness of the evidence presented. B. Violations of this Ordinance are subject to a civil action brought by the District Attorney or City Attorney, punishable by: 1. A fine not less than two hundred fifty dollars ($250) and not exceeding one thousand dollars ($1000) for a first violation in any sixty-month (60) period; or 2. A fine not less than one thousand five hundred dollars ($1,500) and not exceeding two thousand five hundred dollars ($2,500) for a second violation in any sixty-month (60) period; or 3. A fine not less than three thousand dollars ($3,000) and not exceeding ten thousand dollars ($10,000) for a third or subsequent violation in any sixty-month (60) period. C. Violations of this Ordinance may, in the discretion of the District Attorney or City Attorney, be prosecuted as infractions or misdemeanors. D. Causing, permitting, aiding, abetting, or concealing a violation of any provision of this Ordinance shall constitute a violation. E. Violations of this Ordinance are hereby declared to be public nuisances. F. In addition to other remedies provided by this Ordinance or by other law, any violation of this Ordinance may be remedied by a civil action brought by the City Attorney, including, but not limited to, administrative or judicial nuisance abatement proceedings, civil or criminal code enforcement proceedings, and suits for injunctive relief. SECTION 2. If any provision, clause, sentence or paragraph of this Ordinance or the application thereof to any person or circumstance shall be held invalid, such invalidity shall not affect the other provisions of this Ordinance and are hereby declared to be severable. 9 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. PASSED, APPROVED, AND ADOPTED at a regular meeting of the City Council of the City of Lake Elsinore, California, on ~Zf August 2007. OBERT E. MAG MAYOR CITY OF LAKE - ATTEST: r t/ UJJJeliI ~ MICHELLE SOTO INTERIM CITY CLERK APPROVED AS TO FORM: ~2'~~ - CITY ATTORNEY CITY OF LAKE ELSINORE 10 STATE OF CALIFORNIA ) COUNTY OF RIVERSUDE )ss. CITY OF LAKE ELSINORE ) I, MICHELLE SOTO, Interim City Clerk of the City of Lake Elsinore, California, hereby certify that the foregoing Ordinance No. 1230 was introduced at a regular meeting of the City Council of the City of Lake Elsinore on the 14th day of Auqust 2007, and was finally passed at a regular meeting of the City Council of the City of Lake Elsinore held on the 28th day of Auqust 2007, by the following roll call vote: AYES: MAYOR ROBERT E. MAGEE MAYOR PRO TEM DARYL HICKMAN COUNCILMEMBER THOMAS BUCKLEY COUNCILMEMBER GENIE KELLEY COUNCILMEMBER ROBERT SCHIFFNER NOES: NONE ABSENT: NONE - ABSTAIN: NONE ~etU~ mJv MICHELLE SOTO INTERIM CITY CLERK 11 ORDINANCE NO. 1231 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, AMENDING SECTION 2.46.060, SUBPARAGRAPHS I AND J OF THE LAKE ELSINORE MUNICIPAL CODE REGARDING THE DUTIES AND RESPONSIBILITIES OF THE PUBLIC SAFETY ADVISORY COMMISSION WHEREAS, the Public. Safety Advisory Commission (the "Commission") was established to serve as a conduit of information and communication from residents and business people to the City's public safety, code enforcement and emergency services professionals; and WHEREAS, Chapter 2.46 of the Lake Elsinore Municipal Codes enumerates the duties and responsibilities of the Commission and provides that the Commission may request that the City Council consider additional duties and responsibilities for the Commission. THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. That Section 2.46.060, subparagraph I is hereby designated as subparagraph J. SECTION 2. That Section 2.46.060, subparagraph I is hereby added as follows: I. The Commission shall hear citizen's complaints and concerns regarding traffic safety, communicate such complaints and concerns to City personnel designated by the City Manager, and report back to citizens within a reasonable time period. SECTION 3. If any provision, clause, sentence or paragraph of this Ordinance or the application thereof to any person or circumstance shall be held invalid, such invalidity shall not affect the other provisions of this Ordinance and are hereby declared to be severable. SECTION 4. This Ordinance shall take effect thirty (30) days after the date of its final passage. The City Clerk shall certify as to adoption of this Ordinance and cause this Ordinance to be published and posted in the manner required by law. . 1 PASSED, APPROVED, AND ADOPTED at a regular meeting of the City Council of the City of Lake Elsinore, California, on this 9th d 0 ctober 2007. ROBERT E. MAGE MAYOR CITY OF LAKE ELSINORE 78T: L L~ VIVIAN M. MUNSON CITY CLERK CITY OF LAKE ELSINORE 2 STATE OF CALIFORNIA ) COUNTY OF RIVERSUDE )ss. CITY OF LAKE ELSINORE ) I, VIVIAN M. MUNSON, City Clerk of the City of Lake Elsinore, California, hereby certify that the foregoing Ordinance No. was introduced at a regular meeting of the City Council of the City of Lake Elsinore on the 25th day of September 2007, and was finally passed at a regular meeting of the City Council of the City of Lake Elsinore held on the 9th day of October 2007, by the following roll call vote: AYES: NOES: MAYOR ROBERT E. MAGEE MAYOR PRO TEM DARYL HICKMAN COUNCILMEMBERS THOMAS BUCKLEY, GENIE KELLEY AND ROBERT SCHIFFNER NONE ABSENT: NONE - ABSTAIN: NONE L L.l,-J VIVIAN M. MUNSON CITY CLERK CITY OF LAKE ELSINORE 3 ORDINANCE NO. 1232 ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, AUTHORIZING THE LEVY OF A SERVICES SPECIAL TAX AND A SPECIAL TAX WHEREAS, on August 28, 2007, the City Council (the "Council") of the City of Lake Elsinore (the "City") adopted Resolution No. 2007-156 stating its intention to form the City of Lake Elsinore Community Facilities District No. 2007-4 (Makenna Court) (the "CFO") pursuant to the Mello-Roos Community Facilities Act of 1982, as amended (the "Act"), to finance a portion of the cost of providing parks, open space and storm drain maintenance services (the "Services") that are in addition to those provided in the territory within the CFD prior to the formation of the CFD, and to finance the purchase, construction, expansion or rehabilitation of certain real and other tangible property with an estimated useful life of five years or longer, including public infrastructure facilities and other governmental facilities, which the City is authorized by law to construct, own or operate (the "Facilities"); and WHEREAS, on August 28,2007, the Council also adopted Resolution No. 2007- 157 stating its intention and the necessity to incur bonded indebtedness in the amount not to exceed $4,000,000 to be issued for the purpose of financing the purchase, construction, expansion or rehabilitation of the Facilities; and WHEREAS, notice was published as required by law relative to the intention of the Council to form the CFD .and to incur bonded indebtedness in the amount not to exceed $4,000,000 within the boundaries of the CFD; and WHEREAS, on October 9, 2007, this Council held a noticed pUblic hearing as required by law relative to the determination to proceed with the formation of the CFD, the rate and method of apportionment and manner of collection of the special tax to be levied within the CFD to pay for the Services and the rate and method of apportionment and manner of collection of the special tax to be levied within the CFD to pay the principal and interest on the proposed bonded indebtedness of the CFD, and relative to the necessity for authorizing the bonds, the purpose for which the bonds are to be issued, the amount of the proposed debt, the maximum term of the bonds and the maximum annual rate of interest to be paid; and WHEREAS, at said hearing all persons desiring to be heard on all matters pertaining to the formation of the CFD and the incurring of bonded indebtedness by the CFD were heard and a full and fair hearing was held; and WHEREAS, the Council subsequent to said hearing adopted Resolution No. 2007- 177 determining the validity of prior proceedings and established the CFD; and 1 WHEREAS, the Council subsequent to said hearing adopted Resolution No. 2007- 157 which called an election within the CFD for October 9, 2007, on the proposition of incurring bonded indebtedness, levying a special tax and setting an appropriations limit; and WHEREAS, on October 9,2007, an election wa~ held within the CFD in which the eligible electors approved by more than two-thirds vote the proposition of incurring bonded indebtedness, levying a special tax, and setting an appropriations limit. THE City COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, DOES ORDAIN AS FOllOWS: SECTION 1. A special tax (the "Services Special Tax") is levied within the boundaries of the CFD pursuant to the formula set forth in Exhibit "A" attached hereto in an amount necessary to pay all of the costs of providing the Services, periodic costs, and costs ofthe tax levy and collection, and all other costs. SECTION 2. A special tax (the "Special Tax") is levied within the boundaries of the CFD pursuant to the formulas set forth in Exhibit "A" attached hereto in an amount necessary to pay all of the costs of providing the Facilities, periodic costs, and costs of the tax levy and collection, and all other costs including amounts payable with respect to the bonded indebtedness. SECTION 3. This legislative body is hereby further authorized each year, by resolution adopted as provided in section 53340 of the Act, to determine the specific special tax rate rand amount to be levied for the then current or future tax years, except that the special! tax rate to be levied shall not exceed the maximum rate set forth in Exhibit "A". SECTION 4. All of the collections of the Services Special Tax and Special Tax shall be used as provided for in the Act and Resolution No. 2007- 177 (Resolution of Formation). SECTION 5. The above authorized Services Special Tax and the Special Tax shall be collected in the same manner as ordinary ad valorem taxes are collected and shall be subject to the same penalties and the same procedure and sale in cases of delinquency and provided for ad valorem taxes; provided, however, the CFD may collect the Services Special Tax and the Special Tax at a different time or in a different manner if necessary to meet its financial obligations. SECTION 6. If any provision, clause, sentence or paragraph of this Ordinance or the application !thereof to any person or circumstance shall be held invalid, such invalidity shall not affect the other' provisions of this Ordinance and are hereby declared to be severable. 2 SECTION 7. The Mayor shall sign this ordinance arid the City Clerk shall attest to such signature. The City Clerk is directed to cause the title and summary or text of the this ordinance, together with the vote thereon, to be published within fifteen (15) days after its passage at least once in a newspaper of general circulation published and circulated within the territorial jurisdiction of the City, and to post at the main office of the City a certified copy of the full text of the adopted ordinance along with the names of the council Members voting for and against the ordinance. SECTION 8. This ordinance relating to the levy of the Services Special Tax and the Special Ta~ takes effect and shall be in force from and after 30 days from the date of final passage. A copy of this ordinance shall be transmitted to the Clerk of the Board of Supervisors of Riverside County, the Assessor and the Treasurer-Tax Collector of Riverside County. PASSEP, APPROVED, AND ADOPTED at a regular meeting of the City Council of the City of Lake Elsinore, California, on this ~ of October 2007. c ROBERT E. MA MAYOR CITY OF LAKE EL ATTEST: L L. L~. VIVIAN M. MUNSON CITY CLERK -- APPROVED ASiO FORM: \\'\ ~'- 'v'vv.- ~~ - BARBARA ZEID LEIBOLD CITY ATTORNEY CITY OF LAKE ELSINORE 3 STATE OF CALIFORNIA ) COUNTY OF RIVERSUDE )ss. CITY OFLAKEiELSINORE ) I, VIVIAN M. MUNSON, City Clerk of the City of Lake Elsinore, California, hereby certify that the foregoing Ordinance No. 1232 was introduced at a regular meeting of the City Coumcil of the City of Lake Elsinore on the 28th day of September 2007, and was finally passed at a regular meeting of the City Council of the City of Lake Elsinore held on the 9th day of October 2007, by the fOllowing roll call vote: AYES: NOES: ABSENT: ABSTAIN: [ l.L_ VIVIAN M. MUNSON CITY CLERK 4 RATE AND METHOD OF APPORTIONMENT FOR COMMUNITY FACILITIES DISTRICT No. 2007-4 OF THE . CITY OF LAKE ELSINORE (MAKENNA COURT) A Special Tax shall be levied on all Assessor's Parcels in Community Facilities District No. 2007-4 of the City of Lake Elsinore (Makenna Court) ("CFD No. 2007-4") and collected each Fiscal Year commencing in Fiscal Year 2007-2008, in an amount detennined through the application df this Rate and Method of Apportionment as described below. All of the real property in CFD No. 2007-4, unless exempted by law or by the provisions hereof, shall be taxed for the !purposes, to the extent and in the manner herein provided. A. DEFINITIONS The terms hereinafter set forth have the following meanings: "Acre" ot IIAcreagell means the land area of an Assessor's Parcel as shown on an \ Assessor's Parcel Map, or if the land area is nbt 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. "Act.' me~ns the Mello,.Roos Community Facilities Act of 1982, being Chapter 2.5, Part 1, Division 2 of Title 5 of the California Government Code. "Admlnl$tratlve Expenses" means the following actual or reasonably estimated costs directly related to the administration of CFD No. 2007-4: the .costs of "computing the Special Taxes and preparing the annual Special Tax collection schedule$ (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 T$xes to the Trustee; the costs ofthe Trustee (including its legal counsel) in the discharge of the duties required of it under the Indenture; the costs to the City, CFD No.: 2007-4 or any designee thereof of complying with arbitrage rebate requirements; the costs to the City, CFD No. 2007-4 or any designee "thereof of complying with disclosure requirements of the City, CFD No. 2007-4 or obligated persons associated with applicable federal and state securities laws and theAct; the costs associated with preparing Special Tax disclosure statements and responding to public inquiries regarding the Special Taxes; the costs of the City, CFD No, 2007- 4 or any designee thereof related to an appeal of the SpeCial Tax; the costs associate(:l with the release of funds from an escrow account; and the City's annual administration fees and third party expenses; Administrative Expenses shall also include" amounts estimated by the CFD Administrator or advanced by the City or CFD No. ~007 -4 for any other administrative purposes of CFD No. 2007-4, inclUding attorney's !fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes. "Apartment Propertyll means all Assessor's Parcels of Residential Property on which one! or more Apartment Units are constructed. City 01 Lake Elsinore. Community FacllltiesiDistrlct No. 2007-1 (Makenna Court) August 15,2007 Page 1 "Apartment Unit" means a dwelling unit within a building comprised or 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 to which an Assessor's parcel number is assigned: as determined from an Assessor's Parcel Map or' the applicable assessment roll. . "AssessQr'sParcel Map" means an official map of the County Assessor of the County designating parcels by Assessor's Parcel number. "Assigned Special Tax for Facilities" means the Special Tax for Facilities for each land Use Class of Developed Property, as determined in accordance with Section O.1.(b) below. "Authori~ed Facilities" means those facilities eligible to be funded by CFD No. 2007-4. "Backup: Special Tax for Facilities" means the Special Tax for Facilities applicabl~ to each Assessor's Parcel of Developed Property, as determined in accordance with Section C.1.(c) below. "Certiflc~te of Occupancy" means a certificate issued by the City that authorizes the actual occupancy of a dwelling unit for habitation by one or more residents. "CFD Administrator" means an official ofthe City, or designee thereof, responsible for detentnining the Special Tax Requirement for Facilities, the Special Tax Requirement for Services as determined in accordance with Section I below, and providing ~or the levy and collection of the Special Taxes. "CFD No~ 2007-4" means Community Facilities District No. 2007-4 of the City of Lake Elsinore (Makenna Court). "CFD No. 2007-4 Bonds" means any bonds or other debt (as defined in Section 53317(d) ofthe Act), whether in one or more series, issued by CFD No. 2007-4 and secured solely by the Special Tax for Facilities levy on property within the boundaries' of CFD No. 2007-4 under the Act. "City.. means the City of Lake Elsinore. "Council" means the City Council of the City of lake Elsinore, acting as the legislative body of CFD No. 2007-4. "County... means the County of Riverside. City of Lake Elsinore: . Community Facn~ District No. 2007-4 (Makenna Court) August 15, 2007 Page 2 "Developed Property" means, with respect to the Special Tax for Facilities, for each Fiscal Year, all Taxable Property, exclusive of Taxable Public Property and Taxable Property Owner Association Property, for which the Final Subdivision was recorded on or before January 1 of the prior Fiscal Year and a building permit for new construction was issued on or before May 1 of the Fiscal Year preceding the Fiscal Yesr for which the Special Tax for Facilities i~ being levied. "Final SulJdivlslon" means a subdivision of propefty by recordation of (i) a final map, or portion thereof, approved by the City pursu~nt to the Subdivision Map Act (California: Government Code Section 66410 et seq.) that creates individual lots for which building permits may be issued, or (ii) lot Iin~ adjustment approved by the City. "Fiscal Year" means the period starting July 1 and ending on the following June 30. "Indenture" means the indenture, fiscal agent agreement, resolution or other instrument pursuant to which CFD No. 2007-4 Bonds are issued, as modified, amended ~nd/or supplemented from time to time, and any instrument replacing or supplementing the same. "Land Use Class" means any of the classes listed in Table 1 below. "Maximum Special Tax for Facilities" means the maximum Special Tax for Facilities, determined in accordance with Section C below, that can be levied in any Fiscal YesI' on any Assessor's Parcel. "Non-Residential Property" means all Assessor's Parcels of Developed Property for which ai building permit permitting the construction of one or more non-residential units orfadilities has been issued by the City, and which is not otherwise Residential Property. "Outstanding Bonds" means all CFD No. 2007-4 Bonds which are deemed to be outstanding under the Indenture. "Property! Owner Association Property" means, for each Fiscal Year, (i) any property within the boundaries of CFD No. 2007-4 that was owned by a property owner asscj)ciafion, including any master or sub-association, as of January 1 ofthe prior Fisca~ Year, (ii) any property located in a Final Subdivision that was recorded @softhe May 1 preceding the Fiscal Year in which the Special Tax is being levied and which,ias determined from such Final Subdivision, is or will be open space, a common atea recreation facility, or a private street, or (ill) any property which, as of the May 1 preceding the Fiscal Year for which the Special Tax is being levied, has been conv$yed, irrevocably dedicated, or irrevocably offered to a property owner's association, including any master or sub-association, provided such conveyance, dedication" or offer is submitted to the CFD Administrator by May 1 preceding the Fiscal Yea~forwhich the Special Tax is being levied. . City 01 Lake Elsinore Community FllCilitles District No~ 2007-4 (Maunna Court) August 15, 2007 Page 3 "Proportipnately" means for Developed Property that the ratio of the actual Special Tax for Facilities levy to the Assigned Special Tax for Facilities is equal for all Assessor's Parcels of Developed Property. For Undeveloped Property, "Proportionately" means that the ratio of the actual Special Tax for Facilities levy per Acre to the Maximum Special Tax for Facilities per Acre is equal for all Assessor's Parcels of Undeveloped Property. The term "Proportionately" may similarly be appl.ied tOiother categories of Taxable Property as listed in Section 0 below. "Public Property" means property within the boundaries of CFD No. 2007-4 owned by, irrevoQably offered or dedicated to, or over, through or under which an easement for purposes of public use has been granted, to the federal government, the State, the County, the City, or any local government or other public agency, provided that any property leased by a public agency to a private entity and subject to taxation under SeCtion 53340.1 of the Act shall be taxed and classified according to its use. "Residential Floor Area" means all of the square footage of living area within the perimeteriof a' residential structure, not including any carport, walkway, garage, overhang,! patio, enclosed patio, or similar area. The determination of Residential Floor Are$ for an Assessor's Parcel shall be made by reference to tl:le building permit(s) Issued for such Assessor's Parcel. Such determination shall be final following the issuance of a Certificate of Occupancy for the dwelling unit. "Residen~iaIProperty" means all Assessor's Parcels of Developed Property for which a building permit permitting the construction thereon of one or more residential dwelling units has been issued by the City. "Single Family Property" means all Assessor's Parcels of Residential Property other than Apartment Property. "Special Tax" means any of the special taxes authorized to be levied by CFD No. 2007-4 pu!rsuant to the Act. "Special Tax for Facilities" means the special tax to be levied in .each Fiscal Year on each Assessor's Parcel of Developed Property, Taxable Property Owner Associatiqn Property, Taxable Public Property, and Undeveloped Property to fund the Special Tax Requirement for Facilities. "Special tax Requirement for Facilities" rneans that amount required in any Fiscal Year for CFD No. 2007-4 to: (i) pay debt service on all Outstanding Bonds due in the calendar year commencing in such Fiscal Year; (ii) pay periodic costs on the CFD No. 2007-4 Bonds, including but not limited to, credit enhancement and rebate p~yments on the CFD No. 2007-4 Bonds due in the calendar year commencing in such Fiscal Year; (iii) pay a proportionate share. of Administrative - . Expenses; (iv) pay any amounts required to establish or replenish any reserve funds for all Outstanding Bonds; (v) pay for reasonably anticipated Special Tax for City of Lllke Elsinore Community FacilJties>!Jistrlct No. 20074 (Makenna Court) August 15, 2007 Page 4 Facilities qelinquencies; (vi) pay directly for acquisition or construction of Authorized Facilities to the extent that the inclusion of such amount does not increase the Special Tax for Facilities levy on Undeveloped Property; less (vii) a credit for funds available to reduce the annual Special Tax for Facilities levy, as determined by the CFD Administrator pursuant to the Indenture. "State" m'eans the State of California. "Taxable property" means all of the Assessor's Parcels within the boundaries of CFD No. 2007-4 which are not exempt from the Special Tax for Facilities pursuant to law or Section E below. "Taxable property Owner Association Property" means all Assessor's Parcels of Property Qwner Association Property that are not exempt pursuant to Section E below. "Taxable Public Property" means all Assessor's Parcels of Public Property that are not exempt pursuant to Section E below. "Trustee": means the trustee or fiscal agent under the Indenture. "Undeveloped Property" means, for each Fiscal Year, all Taxable Property not classified as Developed Property, Taxable Property Owner Association Property, or Taxable Ptlblic Property. B. ASSIGNMENT TO LAND USE CATEGORIES Each Fis~1 Year, all Taxable Property within CFD No. 2007-4 shall be classified as Developed Property, Taxable Public Property, Taxable Property Owner Association Property, or Undeveloped Property, and shall be subject to the Special Tax for Facilities in accordance with this Rate and Method of Apportionment determined pursuant to Sections C and D below. Each Assessor's Parcel of Residential Property shall be assigned to Land Use Classes 1 through 7 as listed in Table 1 below bas~d on unit type and Residential Floor Area. Each Assessor's parcel of Non-Residential Property shall be assigned to Land Use Class 8. C. MAXIMUM SPECIAL TAX FOR FACILITIES Prior to th~ issuance of CFD No. 2007-4 Bonds, the Assigned Special Tax for Facilities on Developed Property (set forth in Table 1), and the Backup Special Tax for Facilities attributable to a Final Subdivision, may be reduced in accordance with, and sUbje<?t 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 Council, the "Goals and Policies.) calculated pursuant t~ the Goals and Policies based upon the Assigned Special Tax for City of Lake Elsinore , Community FacUlties ~lstrlct No. 2007-4 (Makenna Court) August 15,2007 Page 5 Facilities on Developed Property exceeds the City's maximum level objective set forth in such document, the Assigned Special Tax for Facilities on Developed Property, ~nd the Backup Special Tax for Facilities attributable to a Final Subdivision, may be reduced to the amount necessary to satisfy the City's objective with respe~ to the maximum overlapping debt burden level with the written consent ofthe CFDiAdministrator. 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 "An. 1. Develooed Prooertv (a) Maximum Special Tax for Facilities The Maximum Special Tax for Facilities for each Assessor's Parcel classified as Developed Property shall be the greater of (i) the amount derivad by application of the Assigned Special Tax for Facilities or (ii) the amount derived by application of the Backup Special Tax for Facilities. (b) Assigned Special Tax for Facilities The Assigned Special Tax for Facilities for each Land Use Class is shown below in Table 1. TABLE 1 As$lgned Special Tax for Facilities for Developed Property Community Facilities District No. 2007-4 Fiscal Year 2007.2008 1 Single Family Property More than 2,700 sq. 2 ! Single Family Property 2,450 - 2,700 sq. ft. 3 Single Family Property 2,200 - 2,449 sq. ft. 4 Single Family Property 1,950 - 2,199 sq. ft. 5 t Single Family Property 1,700 - 1,949 sq. ft. 6 i Single Family Property Less than 1,700 sq. 7 Apartment Property NA . ~.' .' .~. ' .-.' $2,784 per unit $2,676 per unit $2,569 per .unit $2,462 per unit $2,309 per unit $2,157 per unit $12,728 per City of Lake Elsinore Community Facillt1es JJfstrict No. 2007-4 (Milkenna Court) August 15, 2007 . Page 6 (c) IBackup Special Tax far Facilities The Fiscal Year 2007-2008 Backup Special Tax far Facilities attributable ta a Final Subdivisian will equal $13,395 multiplied by th.e Acreage 'Of all Taxable Property, exclusive 'Of any Taxable Property Owner Assaciatian Property and Taxable Public Praperty, therein. The Backup Special Tax far Facilities far ea~h Assessar's Parcel 'Of Residential Praperty shall be computed by dividing thei Backup Special Tax far Facilities attributable ta the applicable Final Subdivisian by the numberof Assessar's Parcels and/ar residential units far whlch building permits far residential canstructian have 'Or may be issued (i.e~, the number 'Or residentiallats and/ar units). The Backup Special Tax far Facj:i1ities far each Assessar's Parcel 'Of Nan-Residential. Praperty therein sh~1I equal $13,395 multiplied by the Acrea.ge 'Of such Assessar's Parcel. If al Final Subdivisian includes Assessar's Parcels 'Of Taxable Praperty far whi,ch building permits far bath residential and nan-residential constructian may be issued, exclusive 'Of Taxable Praperty Owner Associatian Praperty and Taxable PUblic Praperty, then the Backup Special Tax far Facilities far eaqh Assessar's Parcel of Residential Praperty shalt be computed exclusive 'Of tne Acreage and Assessar's Parcels 'Of praperty far which building permits far nan-residential constructian may be issued. Na~ithstanding the faregaing,if all 'Or any partian 'Of the Final SUbdivisian(s) de~cribed in the preceding paragraphs is subsequently changed 'Or madified by recordatian 'Of a lat line adjustment 'Or similar instrument, and 'Only if the CFP Administratar determines that such change 'Or madificatian results in a deorease in the number 'Of Assessar's Parcels 'Of Taxable Prapertyfarwhich building permits far residential constructian have 'Or may be issued within suqh Final Subdivisian, then the Backup Special Tax far Facilities far each Assessar's Parcel 'Of Developed Property that is part 'Of the lot line adjl!Jstment 'Or similar instrument far such Final Subdivisian shall be a rate per Acr~ as calculateq below. The Backup Special Tax for Facilities previously det~rmined far an Assessor's Parcel 'Of Develaped Praperty that is nat a part 'Of t~e lat line adjustment 'Or similar instrument far such Final Subdivisian shall natibe recalculated. 1. Determine the total Backup Special Tax far Facilities anticipated ta apply ta the changed 'Or madified partian 'Of the Final Subdivision area priar ta the change 'Or madificatian. City of Lake Elsinore · Community Facilities 'pistrlct No. 2007-4 (Makenna Court) August 15, 2007 Page 7 2. The result of paragraph 1 above shall be divided by the Acreage of Taxable Property which is ultimately expected to exist in such changed. or modified portion of the Final Subdivision area, as reasonably determined by the CFD Administrator. 3. The result of paragraph 2 above shall be the Backup Special Tax for Facilities per Acre which shall be applicable to Assessor's Parcels of Developed Property in such changed or modified portion ofthe Final Subdivision area for all remaining Fiscal Years in which the Special Tax for Facilities may be levied. (d) hhcrease in the Assigned Special Tax for Facilities and Backup Special Tax tor Facilities The Fiscal Year 2007-2008 Assigned Special Tax for Facilities, identified in Tabl~ 1 above, and Backup Special Tax for Facilities shall increase ther~after, commencing on July 1, 2008 and on July 1 of each Fiscal Year thereafter, by an amount equal to two percent (2%) of the amount In effect for the previous Fiscal Year. (e) Multiple Land Use Classes In some instances an Assessor's Parcel of Developed Property may contain more than one Land Use Class. The Maximum Special Tax for Facilities levied on an Assessor's Parcel shall be the sum of the Maximum Special Tax for F Bcilities for all Land Use Classes located on that Assessor's Parcel. The CFD iAdministrator's allocation to each type of property shall be final. 2. Taxable Property Owner Association Property, Taxable Public Property, and Undeveloped Property The Fiscal 'r1ear 2007-2008 Maximum Special Tax for Facilities for Taxable Property Owner Assdciation Property, Taxable Public Property, and Undeveloped Property shall be $13,395 per Acre and shall increase thereafter, commencing on July 1, 2008 and oh July 1 of each Fiscal Year thereafter, by an amount equal to two percent (2~) of the Maximum Special Tax for Facilities in effect for the previous Fiscal Year.. D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX FOR FACILITIES Commencing with Fiscal Year 2007-2008 and for each following Fiscal Year, the Council sha(1 determine the Special Tax Requirement for Facilities and levy the Special Tax ~or Facilities until the amount of Special Tax for Facilities levy equals the Special Tax Requirement for Facilities. The Special Tax for Facilities shall be levied each Fiscal Year as follows: i City of Lake Elsinore August 15, 2007 Community Facilities Dlftrict No. 2007-4 (Makenna Court) Page 8 First: Th~ Special Tax for Facilities shall be levied on each Assessor's Parcel of Developed Property in an amount equal to 100% of the applicable Assigned Special Tax for Facilities; Second: If additional monies are needed to satisfy the Special Tax Requirement for Facilities ~fter the first step has been completed, the Special Tax for Facilities shall be levied Proportionately on each Assessor's Parcel of Undeveloped Property at up to 100% of the" Maximum Special Tax for Facilities for Undeveloped Property; Third: If ~dditional monies are needed to satisfy the Special Tax Requirement for Facilities ~fter the first two steps have been completed, then the levy of the Special Tax for t=acilities on each Assessor's Parcel of Developed Property whose Maximum Special Tax for Facilities is determined through the application of the Backup Special Tax for Facilities shall be increased in equal percentages from the Assigned Special Tax for Facilities up to the Maximum Special Tax for Facilities for each such Assessor's Parcel; Fourth: If!additional monies are needed to satisfy the Special Tax Requirement for Facilities ~fter the first three steps have been completed, then the Special Tax for Facilities shall be levied Proportionately on each Assessor's Parcel of Taxable Property <l>wner Association Property and Taxable Pliblic Property at up to 100% of the "Maximum Special Tax for Facilities for Taxable Property Owner Association Property Qr Taxable Public Property. Notwithstanding the above, the Council may, in any Fiscal Year, levy Proportionately less than 100% of the Assigned Special Tax for Facilities in step one (abo~e), when (i) the Council is no longer required to levy the Special Tax for Facilities pursuant to steps two through four above in order to meet the Special Tax Requirem~nt for Facilities; (ii) all authorized CFD No. 2007-4 Bonds have already been issued or the Council has covenanted that it will not issue any additional CFD No. 2007J1. Bonds (except refunding bonds) to be supported by the Special Tax for Facilities; and (iii) all Authorized Facilities have been constructed and/or acquired and all reimbursements to the developer for the construction and/or acquisition of such facilities have been paid as permitted by law. Further notwithstanding the above, under no circumstances will the Special Tax for Facilities levied against any Assessor's Parcel of Residential Property for which a Certificate, of Occupancy has been issued be increased by more than ten percent as a consequence of delinquency or default by the owner of any other Assessor's Parcel within CFD No. 2007-4. E. EXEMPTIONS No Special Tax for Facilities shall be levied on up to 5.3 Acres of Property Owner Associati~n Property and/or Public Property in CFD No. 2007-4: Tax-exempt status will be aS$igned by the CFD Administrator in the chronological order in which I " City 01 LaIu Elsinore i August 15, 2007 Community Facilltles!Dlstrict No. 2007-4 (Makenna Court) Page 9 property becomes Property Owner Association Property or Public Property. However, :should an Assessor's Parcel no longer be classified as Property Owner Association Property or Public Property, its tax-exempt status will be revoked. Property <Owner Association Property or Public Property that is not exempt from Special T~x for Facilities under this section shall be subject to the levy of the Special TlIlx for Facilities and shall be taxed Proportionately as part of the fourth step in SeCtion. D above, at up to 100% of the Maximum Special Tax for Facilities for Taxable Property Owner Association Property or Taxable Public Property. F. MANNER iOF COLLECTION The Spec'al Tax for Facilities shall be collected in the same manner and at the same timei as ordinary ad valorem property taxes; provided, however, that CFD No. 2007 -4 m~y directly bill the Special Tax for Facilities, may collect the Special Tax for Facilities ~t a different time or in a different manner if necessary to meet its financial obligation$, and may covenant to foreclose and may actually foreclose on delinquen~ Assessor's Parcels as permitted by the Act. G. PREPAYMENT OF SPECIAL TAX FOR FACILITIES The following additional definitions apply to this Section G: "Bulldouti' means, for CFD No. 2007-4, that all expected building permits for dwelling uinits to be constructed in CFD No. 2007-4 have been issued, as . reasonably determined by the CFD Administrator. "CFD Pul)lic Facilities" means either $2,550,000 in 2007 dollars, which shall increase by the Construction Inflation Index on July 1, 2007, and on each July 1 thereafter,' or such lower number as (i) shall be determined by the CFD Administrator as sufficient to provide funding for all of the Authorized Facilities, or (ii) shall be de~ermined by the Council concurrently with a covenant that it will not issue any more q:FD No. 2007-4 Bonds (except refunding bonds) to be supported by the Special T~ for Facilities levy under this Rate and Method of Apportionment as described in Section 0 above. "Constru~tion 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 ihdex ceases to be published, the Construction Inflation Index shall be another in~ex as determined by the CFD Administrator that is reasonably comparable to the Engineering News Record Building Cost Index for the City of Los Angeles. "Future F.cilitles Costs" means. the CFD Public Facilities minus (i) costs of Authorized! Facilities previously paid from the Improvement Fund, (ii) moneys currently or) deposit in the Improvement Fund available to pay costs of Authorized City of Lake Elsinore, . . . Allgust 15, 2007 Commllnity FacilJtle, ~lstrict No. 20074 (Makenna COllrt) Ptlge 10 Facilities, ~nd (iii) moneys currently on deposit in an escrow fund that are expected to be available to finance the cost of Authorized Facilities. "Improvement Fund" means an account specifically identified in the Indenture to . hold fundS which are currently available for expenditure to acquire. or construct Authorized Facilities. "Prevlou.ly Issued Bonds" means, for any Fiscal Year, all Outstanding Bonds that are deem~d to be outstanding under the Indenture after the first interest and/or principal payment date following the current Fiscal Year. 1. Pr~payment In Full Only an Assessor's Parcel of Developed Property, or Undeveloped Property for which a b~i1ding permit has been issued, may be prepaid. The obligation of the Assessor'$ Parcel to pay the Special Tax for Facilities may be permanently satisfied as descrif)ed herein, provided that a prepayment may be made with respect to a particular ~ssessor's Parcel only if there are no delinquent Special Taxes with respect tOI such Assessor's Parcel at the time of prepayment. An owner of an Assessor's Parcel intending to prepay the Special Tax for Facilities obligation shalr provide th~ CFD Administrator with written notice of intent to prepay. Within 30 days of receipt of such written notice, the CFD Administrator shall notify such owner ofthe prepayment amount for such Assessor's Parcel. The CFD Administrator may charge a r~asonable fee for providing this service. Prepayment must be made not less than 45 days prior to the next occurring date that notice of redemption of CFD No. 2007-4 Bonds from the proceeds of such prepayment may be given by the Trustee pursuant to the Indenture. The Special Tax for Facilities Prepayment Amount (defined below) shall be calculated/as summarized below (capitalized terms as defined below): Bond Redemption Amount plus Redemption Premium plus Future Facilities Amount plus Defeasance Amount plus Administrative Fees and Expenses less Reserve Fund Credit less Caoitalized Interest Credit Total: equals Special Tax for Facilities Prepayment Amount As of the proposed date of prepayment, the Special Tax for Facilities Prepayment Amount shall be calculated as follows: Paraarach No.: 1. Co~fjrm that no Special Tax delinquencies apply to such Assessor's Parcel. City of Lake Elsinore . Community Facilities 1r'istrict No. 20074 (Makenna Court) August 15, 2007 Page 11 2. For Assessor's Parcels of Developed Property, compute the Assigned Special Tax for Facilities and Backup Special Tax for Facilities. For Assessor's Parcels of Undeveloped Property for which a building permit has been issued, compute the Assigned Special Tax for Facilities and Backup Sp~cial Tax for Facilities for that Assessor's Parcel as though it was already de$ignated as Developed Property, based upon the building permit which ha$ already been issued for that Assessor's Parcel. 3. (a) !Divide the Assigned Special Tax for Facilities computed pursuant to paijlgraph 2 by the total estimated Assigned Special Tax for Facilities for the entire CFD No. 2007-4 based on the Developed Property Special Tax for Fadilities which could be levied in the current Fiscal Year on all expected dev:elopment through Buildout of CFD No. 2007-4, excluding any Assessor's Pa~cels which have been prepaid, and ' 6. Compute the current Future Facilities Costs. 7. MulJiply the larger quotient computed pursuant to paragraph 3(a) or 3(b) by the ~mount determined pursuant to paragraph 6 to compute the amount of FutliJre Facilities Costs to be prepaid (the "Future Facilities Amounr). 8. Compute the amount needed to pay interest on the Bond Redemption AmOunt from the first bond interest and/or principal payment date following the purrent Fiscal Year until the earliest redemption date for the Previously ISSUed Bonds. 9. Det~rmine the Special Tax for Facilities levied on the Assessor's Parcel in the current Fiscal Year which has not yet been paid. 10. COn!Jpute the minimum amount the CFD Administrator reasonably expects to derive from the reinvestment of the Special Tax for Facilities Prepayment Amount less the Future Facilities Amount and the Administrative Fees and City of Lake Elsinore : Community FacUlties ~lstrlct No. 2007-4 (Mllkenna Court) August 15, 2007 Page 12 Exp~nses (defined ,below) from the date of prepayment until the redemption date for the Previously Issued Bonds to be redeemed with the prepayment. 11. Add the amounts computed pursuant to paragraphs 8 and 9 and subtract the amount computed pursuant to paragraph 10 (the "Defeasance Amounr). 12. The! administr~tive fees and expenses of CFD No. 2007-4 are as calculated by ~he CFD Administrator and include the costs of computation of the prepayment, the costs to invest the prepayment proceeds, the costs of red~eming CFD No. 2007-4 Bonds, and the costs of recording any notices to evid~nce the prepayment and the redemption (the "Administrative Fees and Expenses"). 13. The ireserve fund credit (the "Reserve Fund Credit') shall equal the lesser of: (a) ~he expected reduction in the reserve requirement (as defined in the Indanture), if any, associated with the redemption of Previously Issued Bon~s as a result of the prepayment, or (b) the amount derived by subtracting the new reserve requirement (as defined in the Indenture) in , effe<;:t after the redemption of Previously Issued Bonds as a result of the pre~ayment from the balance in the reserve fund on the prepayment date, but in no event shall such amount be less than zero. No Reserve Fund Credit shall be granted if the amount then on deposit in the reserve fund for the F?reviously Issued Bonds is below 100% of the reserve requirement (as defined in the IndentLire). 14. If any capitalized interest for the Previously Issued Bonds will not have been exp~nded as of the date immediately following the first interest and/or prin~ipal payment following the current Fiscal Year, a capitalized interest credIt shall be calculated by multiplying the larger quotient computed purslJant to paragraph 3(a) or 3(b) by the expected balance in the capitalized inter~st fund or account under the Indenture after such first interest and/or prindipal payment (the "Capitalized Interest Credif'). 15. The $pecial Tax for Facilities prepayment is equal to the sum of the amounts computed pursuant to paragraphs 4, 5, 7, 11 and 12, less the amounts comll>uted pursuant to paragraphs 13 and 14 (the" Special Tax for Facilities Prep'ayment Amount'): From the Special Tax for Facilities Prepayment Amount, the amounts computed pursuant to iparagraphs 4, 5, 11, 13 and 14 shall be deposited into the appropriate fund as est~blished under the Indenture and be used to retire CFD No. 2007-4 Bonds or rtlake debt service payments. The amount computed pursuant to paragraph ~ shall be deposited into the Improvement Fund. The amount computed pursuant tOlparagraph 12 shall be retained by CFD No. 2007-4. The Special Tax for Facilities Prepayment Amount may be insufficient to redeem a full $5,000 increment of CFD No. 2007-4 Bonds. In such cases, the increment City 01 Lake Elsinore ! August 15, 2007 Community'Facilities D~rlct No. 2007-4 (Makenna Court) Page 13 above $5,000 or integral multiple thereof will be retained in the appropriate fund establishet1 under the Indenture to be used with the next prepayment of CFD No. 2007 -4 Bo~ds or to make debt service payments. As a resultiofthe payment of the current Fiscal Year's Special Tax for Facilities levy as determihed under paragraph 9 (above), the CFD Administrator shall remove the current Fis~al Year's Special Tax for Facilities levy for such Assessor's Parcel from . the CountY tax rolls. With respect to any Assessor's Parcel that is prepaid, the Council shall cause a suitable notice to be recorded in compliance with the Act, to indicate th~ prepayment of the Special Tax for Facilities and the release of the Special Tax for Facilities lien on such Assessor's Parcel, and the obligation of such Assessor'$ Parcel to pay the Special Tax for Facilities shall cease. Notwithstahding the foregoing, no Special Tax for Facilities prepayment shall be allowed unless, at the time of such proposed prepayment, the amount of Maximum Special Tape for Facilities that may be levied on Taxable Property within CFD No. 2007-4 (after excluding 5.3 Acres of Property Owner Association Property and Public Property as set forth in Section E) both prior to and after the proposed prepayment is at least equal to the sum of (i) the Administrative Expenses, as defined in ~ection A above, and (ii) 1.10 times maximum annual debt service, in each remaining Fiscal Year on the Outstanding Bonds. . 2.. Prepayment in Part The Speci~1 Tax for Facilities on an Assessor's Parcel of Developed Property or an Assessor'si Parcel of Undeveloped Property for which a building permit has been issued ma~ be partially prepaid. The amount of the prepayment shall be calculated as in Section G.1; except that a partial prepayment shall be calculated according to the followirlg formula: PP = [(PE - A) x F] + A G.1. The~e terms have the following meaning: PP =? the partial prepayment. Pe =1 the Special Tax for Facilities Prepayment Amount calculated according to Section G.1. F = the percentage, expressed as a decimal. by which the owner of the Assessor's. Parcel is partially prepaying the Special Tax for Facilities. A = the Administrative Fees and Expenses calculated according to Section ,- The owner of any Assessor's Parcel who desires such prepayment shall notify the CFD Admi~istrator of such owner's intent to partially prepay the Special Tax for Facilities a~d the percentage by which the Special Tax for Facilities shall be prepaid. T~e CFD Administrator shall provide the owner with a statement of the amount req~ired for the partial prepayment of the Special Tax for Facilities for an City 01 Lake Elsinore i A.ugust 15, 2007 Community FacUlties ~istrlct No. 2007-4 (Makenna Court) Page 14 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, t~e Council shall (i) di.stribute the funds remitted to it according to Section G.1, and (Ii) indicate in the records of CFD No. 2007-4 that there has been a partial prepayment of the Special Tax for Facilities and that a portion of the Special Tax for Facilities !with respect to such Assessor's Parcel, equal to the outstanding percentage (1.00 - F) of the remaining Maximum Special Tax for Facilities, shall cOntinue tp be levied on such Assessor's Parcel pursuant to Section 0 above. H. TERM O~SPECIAL TAX FOR FACILITIES The Spec~al Tax for Facilities shall be levied for a period not to exceed forty years commenclng with Fiscal Year 2007-2008, provided however that the Special Tax for Facilities will cease to be levied in an earlier Fiscal Year if the CFD Administrator has determined (i) that all required interest and principal payments on the CFD No. 2007-4 Bqnds have been paid; (ii) all Authorized Facilities have been constructed and/or acquired and all reimbursements to the developet for the construction and/or acquisition of such facilities have been paid as permitted by law; and (iii) all other obligation~ of CFD No. 2007-4 have been satisfied. I. SPECIAL iT' AX FOR SERVICES I The follOWIng additional definitions apply to this Section I: "Develop~d Multifamily Unit" means a residential dwelling unit within a building in which eac~ of the individual dwelling units has or shall have at least one common wall with a~other dwelling unit and a building permit has been issued by the City for such dwelling unit on or prior to May 1 preceding the Fiscal Year in which the Special T~x for Services is being levied. "Develope,d Non-Residential Property" means all Assessor's Parcels for which a building pe,rmit was issued by the City for any type of non-residential use, excluding property qwned by local, state, or federal government, on. or prior to May 1 preceding ~he Fiscal Year in which the Special Taxis being levied. "Develop~d 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 issu~d by the City on or prior to May 1 preceding the Fiscal Year in which the Special Tax for Services is being levied. "Maximun> Spe~lal Tax for Services" means the maximum Special Tax for Services that can be levied by CFD No. 2007-4 in any Fiscal Year on any Assessor'si Parcel. City of Lake Elsinore . Community Facilities l!1str1ct No. 2007-4 (M~enna Court) , . August 15,2007 Page 15 "Operatin~ Fund" means a fund that shall be maintained for CFD No. 2007-4 for any FiscallYear 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 oflhe preceding Fiscal Year. "Service Area" means parks, open space, and storm drains. "Speclall)lx for Services" means any of the special taxes authorized to be levied within CFDI No. 20074 pursuant to the Act to fund the Special Tax Requirement for Services. "Special Trax Requirement for Services" means the amount determined in any Fiscal Yeat for CFD No. 2007-4 equal to (i) the budgeted costs directly related to the Servic$ Area, including maintenance, repair and replacement of certain components of the Service Area which have been accepted and maintained or are reasonabl;1 expected to be accepted and maintained during the current Fiscal Year, (ii) pay a ,proportionate share of Administrative Expenses, and (iii) anticipated Special Tap< for Services delinquencies based on the delinquency rate for the Special Ta*for Services levy in CFD No. 2007-4 for the previous Fiscal Year, less (iv) the Op~rating Fund Balance, as determined by the CFD Administrator. 1. Rat~ and Method of Apportionment of the Special Tax for Services Commencing with Fiscal Year 2007-2008 and for each subsequent Fiscal Year, the Council shall levy the Special Tax for Services on (i) all Assessor's Parcels Gontaining a Developed Single Family Unit or Developed Multifamily Unit and (ii) all Assessor's i 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 2007-2008 shall be $251.78 per Developed Single Family Unit, $125.89 per Developed Multifamily Unit, and $567.02 p~r Acre for each Assessor's Parcel of Developed Non-Residential Property. . On each Ju~y 1, commencing July 1, 2008, the Maximum Special Tax for Services shall be incteased by two percent (2.00%) ofthe amount in effect in the prior Fiscal Year. 2. Duration of the Special Tax for Services The Special Tax for Services shall be levied in perpetuity to fund the Special Tax Requirememt for Services, unless no longer required as determined at the sole discretion or the Council. City of Lake Elsinore Community FacllitJes Dfstrict No. 2007-4 (Makenna Court) August 15, 2007 Page 16 3. Col'ection of the Special Tax for Services The Special Tax for Services shall be collected in the same manner and at the same time las ordinary ad valorem property taxes, provided, however, that CFD No. 2007-4 m~y collect the Special Tax for Services at a different time or in a different manner if mecessary to meet its funding requirements. J. APPEALSIAND INTERPRETATIONS Any lando,+,ner or resident who feels that the amount of the Special Tax levied on their Asse$sor's Parcel. is in error may submit a written appeal to CFD No. 2007-4. The CFD ~dministrator shall review the appeal and if the CFD AdfTlinistrator concurs, tHe amount of the Special Tax levied shall be appropriately modified. The Counqil 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 resident appeals. Any decision o~ the Council shall be final and binding as to all persons. K:\CLlENTS2\CLC\Makenna Court\RMA \Makenna Court CFD RMA Draft 3.doc Revised: t 0/3/07 -. City of Lake Elsinore Community Facilities ~lstrlct No. 2007-4 (Makenna Court) August 15, 2007 Page 17 - EXHIBIT A CERTIFICATE TO AMEND SPECIAL TAX FOR FACILITIES CITY OF LAKE ELSINORE AND CFD No. 2007-4 CERTIFICATE : 1. Pursuant to S~ction C of the Rate and Method of Apportionment, the City of lake Elsinore ("Cit}1') and Community Facilities District No. 2007-4 of the City of lake Elsinore ("CFrj, No. 200.7-4") hereby agree to a reduction in the Assigned Special Tax for Facilities (or Developed Property, and the Backup Special Tax for Facilities attributable to a Final Subdivision within CFD No. 20.0.7-4: (a) The information in Table 1 relating to the Assigned Special Tax for Facilities for Developed Property within CFD No. 20.0.7-4 shall be modified as follows: 1 Single Family Property More than 2,70.0. sq. ft. per unit I 2 Single Family Property 2,450. - 2,70.0. sq. ft. per unit 3 Single Family Property 2,20.0. - 2,449 sq. ft. per unit 4 Sin ile Family Property 1,950. - 2,199 sq. ft. per unit 5 Sing! e Family Property ,1,70.0. -1,949 sq. ft. per unit - 6 Single Family Property less than 1,70.0. sq. ft. per unit 7 Apalftment Property NA per Acre 8 Non+Residential NA per Acre I (b) The Backup Special Tax for Facilities attributable to a Final Subdivision within CFD . No. 20.07 -4;1 as stated in Section C.1.( c), shall be reduced from $13,395 per Acre to $ 'per!Acre. ' , 2. The Special T~x for Facilities may only be modified prior to the first issuance of CFD No. 20.0.7-4 Bomds. 3. Upon execution of the Certificate by the City and CFD No. 20.0.7-4, the City shall cause an amended nqtice of Special Tax lien forCFD No. 2007-4 to be recorded reflecting the modifications s~t forth herein. I I By execution herecj)f, the undersigned acknowledges, on behalf of the City and CFD No. 200.7-4, receipt ~f this Certificate and modification of the Rate and Method of Apportionment as ~et forth in this Certificate. CITY OF LAKE ELSINORE By: CFD Administrator Date: COMMUNITY FAcILITIES DISTRICT NO. 2007-4 OF THE CITY Of LAKE ELSINORE By: Date: ORDINANCE NO. 1233 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA DELETING AND RESERVING CHAPTER 17.06 OF THE LAKE ELSINORE MUNICIPAL CODE REGARDING THE RESOURCE CONSERVATION OVERLAY DISTRICT WHEREAS, Section 17.06.010 establishes the Resource Conservation Overlay District, the purpose of which is to provide for the preservation and conservation of various natural resources in order to satisfy immediate and long-term public and private objectives; and WHEREAS, the City Council recently added Chapter 17.61 to the Lake Elsinore Municipal Code establishing the M-3 Mineral Resources and Related Manufacturing District, the purpose of which is to accommodate mineral resource extraction and related manufacturing specifically to expand both the economic base of the City and employment opportunities; and WHEREAS, addition of the new Chapter 17.61 rendered the terms of Chapter 17.06 superfluous and unnecessary because Chapter 17.61 more thoroughly outlines the application process and the regulations regarding treatment and extraction of natural resources within the City's limits; and WHEREAS, the City Council wishes to delete Chapter 17.06 and reserve that Chapter for possible future overlay zones; and WHEREAS, pursuant to Section 15063 of the State Guidelines for Implementation of the California Environmental Quality Act (Title 14, California Code of Regulations, Sections 15000 et seq.: "CEQA Guidelines"), the City, as lead agency, prepared an Initial Study to determine if the proposed text amendment may have a significant effect on the environment; and WHEREAS, the results of the Initial Study revealed that the proposed text amendment would not have a significant effect on the environment and the City therefore prepared a. Negative Declaration in accordance with the requirements of Section 15070 of the CEQA Guidelines; and WHEREAS, the Planning Commission considered both oral and written evidence regarding the proposed text amendment at a noticed public hearing on October 16, 2007, and by a unanimous vote recommended that the City Council approve the proposed text amendment; and WHEREAS, at its regularly scheduled meeting on October 23, 2007, the City Council held a public hearing and considered the proposed text amendment, the 1 Planning Commission's recommendation, and oral and written testimony presented with regard to the proposed text amendment. NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. The City Council hereby finds and determines that based upon the results of the Initial Study and all of the evidence in the record that the proposed text amendment will not have a significant effect on the environment. Moreover, the City Council hereby finds and determines that the Negative Declaration is complete and acceptable and contains all of the information required by the California Environmental Quality Act (Cal. Pub. Resources Code Sections 21000 et seq.: uCEQAU) and theCEQA Guidelines. The Negative Declaration was properly circulated for public review and comment in accordance with CEQA Guidelines Sections 15073 and 15105. The City Council hereby adopts the Negative Declaration. SECTION 2. The City Council makes the following findings for approval of the proposed text amendment: A. The proposed text amendment will not be detrimental to the health, safety, comfort, or the general welfare of the persons working or residing within the City. The deletion of Chapter 17.06 of the Lake Elsinore Municipal Code will not result in new rules or regulations and will not result in the removal of important existing rules or regulations. The City Council approved an M-3 zoning designation which created a specific zone related to mineral resource uses. The M-3 zoning designation addresses all of the issues that were addressed in Chapter 17.06. Chapter 17.61 renders Chapter 17.06 unnecessary and superfluous. B. The proposed text amendment will not be injurious to property or improvements within the City as the proposed revision and modification is an overall beneficial enhancement to development in the City. The amendment clarifies inconsistencies in the Lake Elsinore Municipal Code. C. The proposed text amendment is consistent with the General Plan, Community Design Element, and serves as an important link between the City's built and natural environments. SECTION 3. ThatChapter 17.06 shall be deleted from the Lake Elsinore Municipal Code and shall be reserved for future use. SECTION 4. SEVERABILITY. If any provision, clause, sentence or paragraph of this Ordinance or the application thereof to any person or circumstance shall be held invalid, such invalidity shall not affect the other provisions of this Ordinance and are hereby declared to be severable. 2 SECTION 5. EFFECTIVE DATE. 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. PASSED, APPROVED, AND ADOPTED at a regular meeting of the City Council of the City of Lake Elsinore, California, on t~i:'~0~. da~ 7; 2007. ./ ~,/~ . / ROBERT E. MAGEE MAYOR A TJEST: V~ LL VIVIAN M. MUNSON CITY CLERK APPROVED AS TO FORM: ~~~ BARBARA ZEID LEIBOLD CITY ATTORNEY STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE )ss. CITY OF LAKE ELSINORE ) 3 I, VIVIAN M. MUNSON, City Clerk of the City of Lake Elsinore, California, hereby certify that the foregoing Ordinance No. 1233 was introduced at a regular meeting of the City Council of the City of Lake Elsinore on the 23rd day of October 2007, and was finally passed at a regular meeting of the City Council of the City of Lake Elsinore held on the 13th day of November ,2007, by the following roll call vote: AYES: Mayor Magee, Mayor Pro Tem Hickman, Councilmember Buckley, Councilmember Kelley, Councilmember Schiffner NOES: None ABSENT: None ABSTAIN: None { LL~ VIVIAN M. MUNSON CITY CLERK 4 ORDINANCE NO. 1234 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA AMENDING AND RESTATING SECTION 17.35.020 OF THE LAKE ELSINORE MUNICIPAL CODE REGARDING RESIDENTIAL USES IN OPEN SPACE DISTRICTS WHEREAS, Chapter 17.35 of the Lake Elsinore Municipal Code sets forth zoning standards for the Open Space District; and WHEREAS, pursuant to Section 17.35.010, land is designated as Open Space if (1) the land is not suitable for residential or other intensive use for the reason that such uses may endanger the health, safety, and welfare of persons due to flooding, fire or erosion, and/or (2) the land is suitable to allow citizens to pursue recreational activities; and WHEREAS, Section 17.35.020(A)(4) permits the development of one single family dwelling unit per ten acres of land on property zoned as Open Space if the single family dwelling unit is used in conjunction with agricultural uses; and - WHEREAS, Section 17.35.020(A)(4) directly contradicts the underlying purpose of the Open Space District which says that residential land uses are not suitable in areas zoned Open Space; and WHEREAS, very low density residential land uses (Le., one dwelling unit per ten acres) are permitted in those areas throughout the City which have a Rural Mountainous General Plan Land Use designation and which are zoned as Rural- Mountainous-Residential; and WHEREAS, the City Council wishes to delete Section 17.35.020(A)(4) from the Lake Elsinore Municipal Code because it is inconsistent with the purpose and intent of the Open Space District and because the Rural'-Mountainous-Residential zone provides opportunity for land owners to develop their property at one dwelling unit per ten acres; and WHEREAS, pursuant to Section 15063 of the State Guidelines for Implementation of the California Environmental Quality Act (Title 14, California Code of Regulations, Sections 15000 et seq.: "CEQA Guidelines"), the City, as lead agency, prepared an Initial Study to determine if the proposed text amendment may have a significant effect on the environment; and WHEREAS, the results of the Initial Study revealed that the proposed text amendment would not have a significant effect on the environment and the City therefore prepared a Negative Declaration in accordance with the requirements of Section 15070 of the CEQA Guidelines; and 1 WHEREAS, the Planning Commission considered both oral and written evidence regarding the proposed text amendment at a noticed public hearing on October 16, 2007, and by a unanimous vote recommended that the City Council approve the proposed text amendment; and WHEREAS, at its regularly scheduled meeting on October 23, 2007, the City Council held a public hearing and considered the proposed text amendment, the Planning Commission's recommendation, and oral and written testimony presented with regard to the proposed text amendment. NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. The City Council hereby finds and determines that based upon the results of the Initial Study and all of the evidence in the record that the proposed text amendment will not have a significant effect on the environment. Moreover, the City Council hereby finds and determines that the Negative Declaration is complete and acceptable and contains all of the information required by the California Environmental Quality Act (Cal. Pub. Resources Code Sections 21000 et seq.: "CEQA") and the CEQA Guidelines. The Negative Declaration was properly circulated for public review and comment in accordance with CEQA Guidelines Sections 15073 and 15105. The City Council hereby adopts the Negative Declaration. SECTION 2. The City Council makes the following findings for approval of the proposed text amendment: A. The proposed text amendment will not be detrimental to the health, safety, comfort, or the general welfare of the persons working or residing within the City. The. purpose of the text amendment is to delete Section 17.35.020(A)(4) from the Lake Elsinore Municipal Code because it is inconsistent with the purpose and intent of the Open Space District. This revision will ensure the protection of the health, safety, comfort and general welfare of persons working and/or residing in Lake Elsinore by prohibiting residential uses in areas where human habitation is dangerous. B. The proposed text amendment will not be injurious to property or improvements within the City as the proposed revisions and modifications are an overall beneficial enhancement to the Open Space Districts throughoutthe City. C. The proposed text amendments are consistent with the General Plan, Community Design Element, and serve as an important link between the City's built environment and the natural environment. 2 SECTION 3. That Section 17.35.020(A) of the Lake Elsinore Municipal Code shall be amended and restated as follows: A. No building or land shall be used, and no building or structure shall be designed, erected, structurally altered or enlarged except for the following purposes: 1. Drainage channels, watercourse, spreading grounds, settling basins, freeways, parkways, park drives; 2. Privately owned or public recreational areas, parks, playgrounds, wildlife preserves, and such buildings and structures as are related thereto, but permitting no commercial uses; 3. Agricultural uses provided an agreement between the City and the land owner can be made which will allow him to operate under the Califdrnia Land Conservation Act; 4. Single fnmily dwellings whon used in conjunction with 3gricultur31 US08 3110wing not moro th3n one (1) dwelling unit for evory ton (10) 3cres of 13nd; 504. Similar uses to those listed in this section, which in the opinion of Planning Commission, would not be detrimental or incompatible with the intent and purpose, as set forth in this Chapter. SECTION 4. SEVERABILITY. If any provision, clause, sentence or paragraph of this Ordinance or the application thereof to any person or circumstance shall be held invalid, such invalidity shall not affect the other provisions of this Ordinance and are hereby declared to be severable. SECTION 5. EFFECTIVE DATE. 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. 3 PASSED, APPROVED, AND ADOPTED at a regular meeting of the City Council of the City of Lake Elsinore, California, on this/~,:/.d a of November ,2007. /// Y1', ROBERT E.MA MAYOR ;rSTL. L~ VIVIAN M. MUNSON CITY CLERK APPROVED AS TO FORM: ~~~ BA BARA ZEID LEIBOLD CITY ATTORNEY STATE OF CALIFORNIA ) COUNTY OF RIVERSUDE )ss. CITY OF LAKE ELSINORE ) 4 /, VIVIAN M. MUNSON, City Clerk of the City of Lake Elsinore, California, hereby certify that the foregoing Ordinance No. 1234 was introduced at a regular meeting of the City Council of the City of Lake Elsinore on the 23rd day of October 2007, and was finally passed at a regular meeting of the City Council of the City of Lake Elsinore held on the 13th day of Nnvpmner ,2007, by the following roll call vote: AYES: Mayor Magee, Mayor Pro Tern Hickman, Councilmember Buckley, Councilmember Kelley, Councilmember Schiffner NOES: None ABSENT: None ABSTAIN: None LLL~ VIVIAN M. MUNSON CITY CLERK 5 ORDINANCE NO. 1235 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, ACTING AS THE LEGISLATIVE BODY OF CITY OF LAKE ELSINORE COMMUNITY FACILITIES DISTRICT NO. 2006-5 (PARKS, OPEN SPACE AND STORM DRAIN MAINTENANCE) AUTHORIZING THE LEVY OF A SPECIAL TAX WITHIN ANNEXATION AREA NO. 2 (CALIFORNIA BUSINESS CONDOS) ANNEXED TO SAID DISTRICT WHEREAS, on September 25, 2007, the City Council (the "Council") of the City of Lake Elsinore, California (the "City") adopted Resolution No. 2007-168 stating its intention to annex certain property (Annexation Area No. 2 (California Business Condos) ("Annexation Area No.2")) into City of Lake Elsinore Community Facilities District No. 2006-5 (Parks, Open Space and Storm Drain Maintenance) (the "District") pursuant to the Mello-Roos Community Facilities Act of 1982, as amended, (the "Act"); and WHEREAS, notice was published as required by law relative to the intention of the Council to annex Annexation Area NO.2 into the District; and WHEREAS, on November 13, 2007, this Council held a noticed public hearing as required by law relative to the determination to proceed with the annexation of Annexation Area No. 2 into the District and the rate and method of apportionment and manner of collection of the special tax to be levied within Annexation Area No. 2 to finance certain public services; and WHEREAS, at said hearing all persons desiring to be heard on all matters pertaining to the annexation of Annexation Area No. 2 were heard and a full and fair hearing was held; and WHEREAS, the Council subsequent to said hearing adopted Resolution No. 2007- 188 determining the validity of prior proceedings relative to the annexation of Annexation Area No.2, annexed Annexation Area No. 2 into the District and authorized the levy of a special tax within Annexation Area No.2; and WHEREAS, the Council subsequent to said hearing adopted Resolution No. 2007- 189 which called an election within Annexation Area NO.2 for November 13, 2007, on the proposition of levying a special tax; and WHEREAS, on November 13, 2007, an election was held within each Annexation Area No.2 in which the eligible electors approved by more than two-thirds vote the proposition of levying a special tax. NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, ACTING AS THE LEGISLATIVE BODY OF CITY OF 1 LAKE ELSINORE COMMUNITY FACILITIES DISTRICT NO. 2006-5 (PARKS, OPEN SPACE AND STORM DRAIN MAINTENANCE), DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. A special tax is levied within the boundaries of Annexation Area No. 2 pursuant to the formula set forth in Exhibit "A" attached hereto and incorporated by reference in an amount necessary to finance a portion of the cost of providing parks, open space and storm drain maintenance services that are in addition to those provided in the territory within Annexation Area NO.2 prior to the annexation of Annexation Area No. 2 into the District, periodic costs, and costs of the tax levy and collection. SECTION 2. This legislative body is hereby further authorized each year, by resolution adopted as provided in section 53340 of the Act, to determine the specific special tax rate and amount to be levied for the next fiscal year, except that the special tax rate to be levied shall not exceed the maximum rate set forth in Exhibit "A." SECTION 3. All of the collections of the special tax shall be used as provided for in the Act and Resolution No. 2007- 168 of the Council. SECTION 4. The above authorized special tax shall be collected in the same manner as ordinary ad valorem taxes are collected and shall be subject to the same penalties and the same procedure and sale in cases of delinquency and provided for ad valorem taxes. SECTION 5. The Mayor shall sign this ordinance and the City Clerk shall attest to such signature. The City Clerk is directed to cause the title and summary or text of the this ordinance, together with the vote thereon, to be published within fifteen (15) days after its passage at least once in a newspaper of general circulation published and circulated within the territorial jurisdiction of the City, and to post at the main office of the City a certified copy of the full text of the adopted ordinance along with the names of the Council Members voting for and against the ordinance. SECTION 6. If any provision, clause, sentence or paragraph of this Ordinance or the application thereof to any person or circumstance shall be held invalid, such invalidity shall not affect the other provisions of this Ordinance and are hereby declared to be severable. SECTION 7. This ordinance relating to the levy of the special tax takes effect and shall be in force from and after thirty (30) days after the date of its final passage. A copy of this ordinance shall be transmitted to the Clerk of the Board of Supervisors of Riverside County, the Assessor and the Treasurer-Tax Collector of Riverside County. 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. 2 PASSED, APPROVED, AND ADOPTED at a regular meeting of the City Council of the City of Lake Elsinore, California, on this 13th day of November, 2007. ~g ~ '--/~ ROBERT E. MAGEE MAYOR ZEST:l. L_ IVIAN M. MUNSON CITY CLERK APPROVED AS TO FORM: STATE OF CALIFORNIA ) COUNTY OF RIVERSUDE )ss. CITY OF LAKE ELSINORE ) I, VIVIAN M. MUNSON, City Clerk of the City of Lake Elsinore, California, hereby certify that the foregoing Ordinance No. 1235 was introduced at a regular meeting of the City Council of the City of Lake Elsinore on the 13th day of November, 2007, and was finally passed at a regular meeting of the City Council of the City of Lake Elsinore held on the?7 day of November ,2007, by the following roll call vote: AYES: COUNCILMEMBER THOMAS BUCKLEY, COUNCILMEMBER GENIE KELLEY, MAYOR PRO TEM DARYL HICKMAN, MAYOR ROBERT E. MAGEE NOES: ABSENT: NONE COUNCILMEMBER ROBERT SCHIFFNER ABSTAIN: NONE \, Ll~ VIV AN M. MUNSON CITY CLERK 3 EXHIBIT A CITY OF LAKE ELSINORE COMMUNITY FACILITIES DISTRICT NO. 2006-5 (PARKS, OPEN SPACE AND STORM DRAIN MAINTENANCE) 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 City of Lake Elsinore Community Facilities District No. 2006-5 (Parks, Open Space and Storm Drain Maintenance) (the "District"), in accordance with the rate and method of apportionment of special taxes hereinafter set forth. Definitions "Assessor's Parcel" means a parcel of land in the District designated and assigned a discrete identifying number on a map of the County Assessor of the County of Riverside. "City" means the City of Lake Elsinore, California. "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 1 preceding the Fiscal Year in which the Special Tax is being levied. "Developed Non-Residential Property" means all Assessor's Parcels for which a building permit was issued by the City for any type of non-residential use on or prior to May 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 May 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. 2006-5 in any Fiscal Year on any Assessor's Parcel. "Operating Fund" means a fund that shall be maintained for CFD No. 2006-5 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" means any of the special taxes authorized to be levied within CFD No. 2006-5 pursuant to the Act to fund the Special Tax Requirement. "Special Tax Requirement" means the amount determined in any Fiscal Year for CFD No. 2006-5 equal to (i) the budgeted costs directly related to the Service Area, including maintenance, repair and replacement of certain components of the Service Area which have been accepted and maintained or are reasonably expected to be accepted and maintained during the current Fiscal Year, (ii) Administrative Expenses, and (iii) anticipated delinquent Special Taxes based on the delinquency rate in CFD No. 2006-5 for the previous Fiscal Year, less (iv) the Operating Fund Balance, as determined by the CFD Administrator. "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 the Special Tax Commencing Fiscal Year 2005-2006 and for each subsequent Fiscal Year, the City Council shall levy Special Taxes 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 to fund the Special Tax Requirement. The Maximum Special Tax 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 1, commencing July 1, 2006, 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. 2006-5 may collect the Special Tax at a different time or in a different manner if necessary to meet its funding requirements. ORDINANCE NO. , ?~fi ORDINANCE OF THE CITY OF LAKE ELSINORE, CALIFORNIA, APPROVING PRE-ANNEXATION ZONE CHANGE NO. 2007-05 WHEREAS, the City of Lake Elsinore is considering the annexation of approximately 589 acres of land (the "Annexation No. 82"), which is currently within the City's Sphere of Influence and which is bound to the south and east by the City of Lake Elsinore, to the west by the Cleveland National Forest and to the north by the conditionally approved Pacific Clay Annexation (the "Running Deer Territory") into the corporate boundaries of the City of Lake Elsinore; and WHEREAS, in accordance with the Riverside LAFCO rules and procedures, Government Code Sections 56375 and 65859, the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 (Government Code Section 56000-56001), and all other applicable laws, the City of Lake Elsinore is processing a Pre-Zone (Zone Change) for the Running Deer Territory; and WHEREAS, the City of Lake Elsinore has proposed to pre-zone the Running Deer Territory area as Rural Mountainous Residential (R-M-R; 1 DU/10 acres), Rural Residential (RR; 1 DU/2 acres), and Open Space (OS); and WHEREAS, after considering the Pre-Zone at a regular meeting held on October 16, 2007, the Planning Commission of the City of Lake Elsinore recommended that the City Council approve Pre-Annexation Zone Change No. 2007-05; and WHEREAS, public notice of the Pre-Zone has been given, and the City Council has considered the Planning Commission's recommendation and evidence presented by the Community Development Department and other interested parties at a public hearing held with respect to this item on November 13, 2007. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, DOES ORDAIN AS FOLLOWS: SECTION 1. The City Council has considered the proposed Pre-Zone prior to making a decision to approve Pre-Annexation Zone Change No. 2007-05. SECTION 2. That in accordance with the Cortese Knox Hertzberg Local Government Reorganization Act of 2000, the State Planning and Zoning Law, and the Lake Elsinore Municipal Code, the City Council makes the following findings for the approval of Pre-Annexation Zone Change No. 2007-05: 1. The proposed zone change will not be: a) detrimental to the health, safety, comfort or general welfare of the persons residing or working within the neighborhood of the proposed zone change or within the City, or b) injurious to the property or improvements in the neighborhood or within the City. 1 The proposed Zone Change has been analyzed relative to its potential to be detrimental to the health, safety, comfort and welfare of the persons residing or working within the neighborhood of the proposed Zone Change. Staff concluded that the project does not propose land uses, densities, or development patterns that will jeopardize the health and safety of the persons residing or working within the neighborhood of the property. Health, safety, and welfare will not be degraded as a result of this project. 2. The proposed action will be consistent with the Goals, Objectives, and Policies of the General Plan and the development standards established with the Lake Elsinore Municipal Code. The Zone Change is consistent with the General Plan's underlying land use designations of Mountainous (1 DU/10 ACRE), Vel}' Low Density Residential (.5 DU/ACRE, and Open Space (OS) for the project site. The Zone Change will allow development of a well-balanced and functional mixed-use project comprised of residential uses, and a public elemental}' school. SECTION 3. Based upon all of the evidence presented, both written and testimonial, the above findings, and the conditions of approval imposed upon the Project, the City Council approves Pre-Annexation Zone Change No. 2007-05. SECTION 4. If any provision, clause, sentence or paragraph of this ordinance or the application thereof to any person or circumstance shall be held invalid, such invalidity shall not affect the other provisions of this ordinance and are hereby declared to be severable. SECTION 5. 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. PASSED, APPROVED, AND ADOPTED at a regular meeting of the City Council of the City of Lake Elsinore, California, on this 27 day of November 2007. t.ST: W VIAN M. UNSON CITY CLERK B RT E. MA MAYOR --.. 2 APPROVED AS TO FORM: STATE OF CALIFORNIA ) COUNTY OF RIVERSUDE )ss. CITY OF LAKE ELSINORE) I, VIVIAN M. MUNSON, City Clerk of the City of Lake Elsinore, California, hereby certify that the foregoing Ordinance No. 1236 was introduced at a regular meeting of the City Council of the City of Lake Elsinore on the 13 day of November , and was finally passed at a regular meeting of the City Council of the City of Lake Elsinore held on the 27 day of November , by the following roll call vote: AYES: COUNCILMEMBER THOMAS BUCKLEY, COUNCILMEMBER GENIE KELLEY, MAYOR PRO TEM DARYL HICKMAN, MAYOR ROBERT E. MAGEE NOES: NONE ABSENT: COUNCILMEMBER ROBERT SCHIFFNER ABSTAIN: NONE ( M.hJso:- CITY CLERK 3 . c<} ~ ~&~, 0/ _b:O ~~ "v\::i\3 () ,-, Cleveland National Forest -$ .~ 0.5 Miles J 1.0 ORDINANCE NO. 1237 AN ORDINANCE OF THE CITY COUNCIL FO THE CITY OF LAKE ELSINORE, CALIFORNIA, REPEALING AND REENACTING CHAPTERS 15.02, 15.04, 15.20, 15.24, 15.36, 15.38, 15.56 OF THE MUNICIPAL CODE, ADOPTING BY REFERENCE THE 2007 EDITION OF THE CALIFORNIA BUILDING STANDARDS CODE, KNOWN AS THE CALIFORNIA CODE OF REGULATIONS, TITLE 24 (CCR, T-24), INCORPORATING: THE INTERNATIONAL BUILDING CODE, 2006 EDITION; THE UNIFORM PLUMBING CODE, 2006 EDITION; THE UNIFORM MECHANICAL CODE, 2006 EDITION; THE NATIONAL ELECTRICAL CODE, 2005 EDITION; THE INTERNATIONAL EXISTING BUILDING CODE, 2006 EDITION; THE INTERNATIONAL FIRE CODE, 2006 EDITION; AND AMENDING THOSE CALIFORNIA BUILDING STANDARDS AS IDENTIFIED HEREIN, THROUGH EXPRESS FINDINGS OF LOCAL NECESSITY WHEREAS, The City Council of the City of Lake Elsinore does ordain as follows: Section 1. Ordinance number 1087 is hereby repealed with the exception of chapters 15.08, 15.12, 15.16, which address abatement of dangerous buildings, relocation of buildings, and housing code provisions respectively, and also with the exception of 15.04.020 B, C, D, and E, 15.20.020 B, 15.24.020 B, and 15.38.020 A, and their respective code sections which establish fees for building, mechanical, plumbing, and electrical fees respectively. These will remain in place un-amended and are not apart of the State Building Standards. Section 2. 15.04.010 Building Code - Adopted Except as provided in this chapter, those certain building codes known and designated as the California Building Code, 2007 Edition, including Appendix 1, Appendix I, and Appendix J, based on the 2006 International Building Code as published by the International Code Council, with the amendments set forth in Section 15.04.020, shall become the building codes of the City for regulating the erection, construction, enlargement, alteration, repair, moving, removal, demolition, conversion, occupancy, equipment, use, height, area and maintenance of all buildings and/or structures in the City. The California Building Code and its appendix will be on file for public examination in the office of the Building Official and the office of the City Clerk. 1 15.04.020 Building Code - Local Amendments The 2007 California Building Code as adopted by 15.04.010 is hereby adopted with the following local amendments: A. The following sections are amended to read as follows, with amendments, additions, and deletions; International Building Code, 2006 Edition, including Appendix 1, Appendix I, and Appendix J, including Exhibit "A" attached thereto. Uniform Mechanical Code, 2006 Edition, including Exhibit "A" attached thereto. Uniform Plumbing Code, 2006 Edition, including Exhibit "A" attached thereto. National Electrical Code, 2005 Edition, including Exhibit "A" attached thereto. International Fire Code, 2006 Edition, including Exhibit "A" attached thereto. International Existing Building Code, 2006 Edition, including Exhibit "A" attached thereto. Section 3. This ordinance is enacted pursuant to and in compliance with Health and Safety Code Section 18941. 5 and as expressly permitted in Government Code Section 50022.2. For all codes the effective date of this ordinance shall be January 1,2008. Express Finding #1: As required by Health and Safety Code 18941.5 (c.) The City Council of the City of Lake Elsinore hereby expressly finds that amendments to the Building Code adopted by this ordinance and as described in Section 15.04.020 are necessary for the protection of the public health, safety and welfare, due to the local climatic, geologic or topographical condition(s), each of which is specifically addressed in the attached Resolution of Findings. Section 4. The City Clerk is hereby directed to file a copy of this ordinance with the California Building Standards Commission of the State of California. CALIFORNIA BUILDING CODE 2007 AMENDMENTS Section 108.4.2 is hereby amended to include the following wording as the second sentence in the paragraph: The fees for Plan Check and Permit shall be as set pursuant to Chapter 3.32 of the Lake Elsinore Municipal Code and as adopted in Ordinance 1087. Section 113.4, violation penalties is hereby amended by revising the following text to read as follows: 2 VIOLATION PENALTIES Any person, firm or corporation violating any of the provisions or failing to comply with any of the mandatory requirements of the Ordinances of Lake Elsinore shall be guilty of a misdemeanor. Any person convicted of a misdemeanor under the Ordinances of Lake Elsinore shall be punished by a fine of not more than one thousand dollars, or by imprisonment not to exceed six months, or by both such fine and imprisonment. Each such person shall be guilty of a separate offense for each and every day during any portion of which any violation of any provision of the Ordinances of Lake Elsinore is committed, continued, or permitted by any such person, and shall be punished accordingly. Section 202 is amended by revising the definition of High-Rise Building item #2 from 75 feet to 55 feet to read as follows: "High-rise structure" means every building of any type of construction or occupancy having floors used for human occupancy located more than 55 feet (16764 mm) above the lowest floor level having building access. (See Section 413.1.2), except buildings used as hospitals as defined in Health & Safety Code Section 1250. Section 403.10.2 and 403.11.1 are modified by moving #3, Ventilation and automatic fire detection equipment for smoke proof enclosures from 403.10.2 Standby Power Loads and placing it in 403.11.1 Emergency Power Loads. The revised Sections are to read as follows: 403.10.2 Standby power loads. The following are classified as standby power loads: 1. Power and lighting for the fire command center required by Section 403.8; 2. Electrically powered fire pumps Standby power shall be provided for elevators in accordance with Sections 1007.4 and 3003. 403.11.1 Emergency power loads. The following are classified as emergency power loads: 1. Exit signs and means of egress illumination required by Chapter 10; 2. Elevator car lighting; 3. Emergency voice/alarm communications systems; 4. Automatic fire detection systems; and 5. Fire alarm systems. 6. Ventilation and automatic fire detection equipment for smoke proof enclosures. 3 Section 412.5.1 is amended by adding a definition for emergency helicopter landing facilities on high-rises which will reference applicable Fire Code provisions and is to read as follows: EMERGENCY HELICOPTER LANDING FACILITY (EHLF). A landing area on the roof of a high-rise building that is not intended to function as a helicopter or helistop but is capable of accommodating fire or medical helicopters engaged in emergency operations, in accordance with California Fire Code Section 1108. Federal Aviation Administration (FAA) approval is not required for an EHLF. Table 1505.1 is hereby amended, by the deletion of Table 1505.1 and the addition of a new Table 1505.1 thereto, to read as follows: TABLE 1505.1 MINIMUM ROOF COVERING CLASSIFICATIONS TYPES OF CONSTRUCTION IA 18 IIA 118 IliA 1118 IV VA V8 8 8 8 8 8 8 8 8 B _ Section 1505.1.3 is hereby amended, by the deletion of the entire section and the addition of a new section thereto, to read as follows: 1505.1.3 Roof coverings within all other areas. The entire roof covering of every existing structure where more than 50 percent of the total roof area is replaced within anyone-year period, the entire roof covering of every new structure, and any roof covering applied in the alteration, repair or replacement of the roof of every existing structure, shall be a fire-retardant roof covering that is at least Class B." Section 1613.7 is added to Chapter 16 ofthe 2007 California Building Code to read as follows: 1613.7 Minimum Distance for Building Separation. All structures shall be separated from adjoining structures. Separations shall allow for the maximum inelastic response displacement (6M). 6M shall be determined at critical locations with consideration for both translational and torsional displacements of the structure as follows: ~M == Cd5max I (Equation 16-45) 4 Where Dmax is the calculated maximum displacement at Level x, and may be taken as 1.2 times the average of the displacement at the extreme points of the structure at level x. Adjacent buildings on the same property shall be separated by at least a distance ~MT, where ~ MT == -J (~ Ml ) 2 + (~ M2 ) 2 (Equation 16-46) and ~M1 and ~M2 are the maximum inelastic response displacements of the adjacent buildings. Where a structure adjoins a property line not common to a public way, the structure shall also be set back from the property line by at least the displacement, ~M, of that structure. Exception: Smaller separations or property line setbacks shall be permitted when justified by rational analyses. References: 1. IBC 2000 Section 1620.3.6, Building Separations; IBC 2003 Section 1620.4.5, Building Separations; 2. "Recommended Lateral Force Requirements and Commentary, - Section C108.2.11, Building Separations," Structural Engineers Association of California, Sacramento, CA, 1999 Edition; 3. CBC 2002 (UBC 1997) Section 1630.9.2, Determination of ~M; Section 1630.10.1, General; and Section 1633.2.11, Building Separations. 4. Los Angeles Regional Uniform Code Program item 16-01. Section 1614, 1614.1, 1614.1.1- Adopt the minimum seismic base shear provisions of ASCE 7-02 in place of the ASCE 7-05 provisions by adding Section 1614,1614.1 and 1614.1.1 to Chapter 16 of the 2007 CBC to read as follows: Section 1614 Modifications to ASCE 7 1614.1 General. The text of ASCE 7 shall be modified as indicated in this Section. 1614.1.1 ASCE 7, Section 12.8.1.1. Modify ASCE 7 Section 12.8.1.1 byamendinq Equation 12.8-5 as follows: 5 Cs = QJ).t 0.044 Sos 1 (Eq. 12.8-5) Section 1614A.1.8 is hereby added by adopting Section 1614A.1.8 modifying ASCE 7 Equation 12.8-16 as adopted by OSHPD and DSA and as already provided in Chapter 16-A of the C.B.C. Section 1614A.1.12 is hereby added by adopting Section 1614A.1.12 modifying ASCE 7 Section 13.5.6.2 to add seismic design requirements for suspended ceilings as adopted by DSA and as already provided in Chapter 16-A of the CBC. ~ Sections 1908.17, 1908.17.1 and 1908.17.2 are added to Chapter 19 of the 2007 California Building Code to read as follows: 1908.1.17 ACI 318, Equation (14-7) of Section 14.8.3 and 14.8.4. Modify ACI 318, Sections 14.8.3 and 14.8.4 as follows: 1908.1.17.1 Modify equation (14-7) of ACI 318 Section 14.8.3 to read as follows: Icr shall be calculated by Equation (14-7), and Ma shall be obtained by iteration of deflections. I = Es (A + ~ l!-J(d _ C)2 + lwcl cr Ec s fy 2d 3 ( 14-7) and the value Es/Ec shall not be taken less than 6. 1908.1.17.2. Modify ACI 318 See, 14.8.4 to read as follows: 14.8.4 - Maximum out-of-plane deflection, ~s, due to service loads, including P~ effects, shall not exceed IJ150. If Mal maximum moment at mid-height of wall due to service lateral and eccentric loads, including P~ effects, exceed e/3) Mer, ~s shall be calculated by Equation (14-8): M _2M ~ = ~ ~ + a 3" cr (~ _ ~ ~ ) s 3 cr M _?:... M n 3 cr n 3 cr (14-8 ) If Ma does not exceed e/3) Mer, ~s shall be calculated by Equation (14-9): ~ = (~J~ S M cr cr (14-9 ) 6 where: Ll = 5M c,l; cr 48 E I c g ~ = 5M nl: n 48 EJcr Appendix J is hereby amended by the addition of a new section thereto, to read as follows: Section J110.3 Temporary Erosion Control. A. Separate plans for temporary drainage and erosion control measures to be used during the rainy season shall be submitted prior to October 1. The control devices shown on said plans shall be installed no later than October 15, and maintained in operable condition until April 15. These plans shall provide the following: 1. Temporary soil stabilization measures shall be installed on graded slopes exceeding a three to one ratio and/or ten feet in height. 2. Desilting fadlity shall be provided at all drainage outlets from the graded site, designed for the twenty-five year, six hour storm intensity. They must be detailed on the plans. Design and specific recommendations shall be submitted for the following: . Desilting basin volume based on gradient and nature of soils . The extent of all graded areas and identification of any temporary soil stabilization measures . Size of desilting basin outlet pipe and over flow · Dike requirements. Minimum wall width, slope of walls, percent of compaction, etc. 3. The following notes shall be placed on the plans: . In case of emergency, call at (responsible person) (24 hour number) 7 . The undersigned civil engineer will supervise erosion control and certify that work is in accordance with the approved plans. (signature, reg. *, expiration date) (name - printed) (dated) 4. Indicate on the plan, which streets will be paved and which drainage devices will be completed by October 15. 5. Placement of devices to reduce erosion damage within the tract is left to the discretion of the Engineer. These devices, if any, must be shown on the plan because their presence will affect the required capacity of the desilting basin. 6. Outlet conditions from the desilting basin shall not exceed downstream limitations, with the exception of overflow, which is to be designed to provide capacity of 1.5 times the maximum design flow. B. Temporary Erosion Control Measures 1. The permittee shall keep a standby crew for emergency work, available at all times during the rainy season. Necessary materials shall be available onsite and stockpiled at convenient locations to facilitate rapid construction of temporary devices or to repair any damaged erosion control measures when rain is imminent. 2. Devices shall not be moved or modified without the approval of the Building Official or, in an emergency by the person responsible for grading operations. 3. All removable protective devices shown shall be in place at the end of each working day when the five-day rain probability forecast exceeds forty percent. Forecasts shall be received from broadcasts provided by the United States Weather Service. 4. After a rainstorm, all silt and debris shall be removed from check berms and desilting basins and the basins pumped dry. Any graded slope surface protection measures damaged during a rainstorm shall also be immediately repaired. Failure to provide effective maintenance may result in penalties as provide per Section 205. 8 5. Fill slopes at the tract perimeter must drain away from the top of the slope at the conclusion of each working day. 6. At least one guard shall be posted on the site whenever the depth of water in any device exceeds eighteen inches. Additional guards may be required as deemed necessary by the Building Official. 7. After a rainstorm, all silt and debris shall be removed from public drains and pipes, and from drains and pipes of adjacent properties. C. Subsequent Rainy Seasons. For projects extending into subsequent rainy seasons, for temporary drainage and erosion control plans shall be submitted. These plans shall comply with all requirements in Section J11 0.3 (A) and (B). Chapter 15.20 of Title 15 of the City of Lake Elsinore Municipal Code is hereby repealed in its entirety and a new Chapter 15.20 is hereby added in place thereof to read as follows: CHAPTER 15.20 MECHANICAL CODE Section 15.20.010 Established. Except as provided in this chapter, the California Mechanical Code, 2007 Edition based on the 2006 Uniform Mechanical Code as published by the lAMPO, shall be and become the Mechanical Code of the City, regulating and controlling the design, construction, installation, quality of materials, location, operation and maintenance of heating, ventilating, cooling, refrigeration systems, incinerators and other miscellaneous heat producing appliances. The California Mechanical Code is on file for public examination in the office of the Building Official and the office of the City Clerk. Section 15.20.020 Amendments. The 2007 Edition of the California Mechanical Code is hereby amended as follows: Section 108.4.2 is hereby amended to include the following wording as the second sentence in the paragraph: The fees for each Permit shall be as set pursuant to Chapter 3.32 of the Lake Elsinore Municipal Code and as adopted in Ordinance 1087. Chapter 15.24 of Title 15 of the Lake Elsinore Municipal Code is repealed in its entirety, and a new Chapter 15.24 is hereby added in place thereof to read as follows: 9 CHAPTER 15.24 PLUMBING CODE Section 15.24.010 Established Except as provided in this chapter, the California Plumbing Code, 2007 Edition, based on the 2006 Uniform Plumbing Code as published by the International Association of Plumbing and Mechanical Officials, shall be and become the Plumbing Code of the City of Lake Elsinore, regulating erection, installation, alteration, repair, relocation, replacement, maintenance or use of plumbing systems within the City. The California Plumbing Code will be on file for public examination in the office of the Building Official and the office of the City Clerk. Section 15.24.020 Amendments The 2007 Edition of the California Plumbing Code is hereby amended as follows: Section 108.4.2 is hereby amended to include the following wording as the second sentence in the paragraph: The fees for each Permit shall be as set pursuant to Chapter 3.32 of the Lake Elsinore Municipal Code and as adopted in Ordinance 1087. Sections 15.38.010, 15.38.020 of Chapter 15.38 of Title 15 of the Lake Elsinore Municipal Code are hereby repealed in their entirety, and new Sections 15.38.010 & 15.38.020 of Chapter 15.38 of Title 15 are hereby added in place thereof to read as follows: CHAPTER 15.38 CALIFORNIA ELECTRICAL CODE Section 15.38.010 Established. Except as provided in this chapter, the California Electrical Code, 2007 Edition, based on the 2005 National Electrical Code as published by the National Fire Protection Association, shall be and become the Electrical Code of the City of Lake Elsinore, regulating all installation, arrangement, alteration, repair, use and other operation of electrical wiring, connections, fixtures and other electrical appliances on premises within the City. The California Electrical Code is on file for public examination in the office of the Building Official and the office of the City Clerk. Section 15.38.020 Amendments. 10 The 2007 Edition of the California Electrical Code is hereby amended as follows: Section 89.108.4.2 is hereby amended to include the following wording as the second sentence in the paragraph: The fees for each Permit shall be as set pursuant to Chapter 3.32 of the Lake Elsinore Municipal Code and as adopted in Ordinance 1087. Article 310.2(B) is hereby amended, by the addition of a second paragraph, to read as follows: "Copper wire shall be used for wiring No. 6 and smaller in all installations. Consideration for use of aluminum wiring can be made by the Building Official for feeder lines only on an individual basis where adequate safety measures can be ensured." Article 310 is amended, by addition of a new Article 310.16, to read as follows: "310-16 Continuous inspection of aluminum wiring. Aluminum conductors of No. six (6) or smaller used for branch circuits shall require continuous inspection by an independent testing agency approved by the Building Official for proper torquing of connections at their termination point." ADOPTION OF 2007 EDITION OF THE CALIFORNIA EXISTING BUILDING CODE Except as provided in this chapter, the California Existing Building Code Appendix A-1 based on the 2006 International Existing Building Code as published by the International Code Council, shall become the Existing Building Code of the City for regulating existing buildings in the City. The California Existing Building Code will be on file for public examination in the office of the Building Official and the office of the City Clerk. All Sections of the Code are deleted except Appendix A-1 which is hereby adopted with no amendments. PASSED, APPROVED, AND ADOPTED at a regular meeting of the City Council of the City of Lake Elsinore, California, on this ay of November 2007. 11 ~EST: l. LA- VI IAN M. MUNSON CITY CLERK APPROVED AS TO FOR B RBARA ZEI LEIBOLD CITY ATTORNEY STATE OF CALIFORNIA ) COUNTY OF RIVERSUDE )ss. CITY OF LAKE ELSINORE ) I, VIVIAN M. MUNSON, City Clerk of the City of Lake Elsinore, California, hereby certify that the foregoing Ordinance No. 1237 was introduced at a regular meeting of the City Council of the City of Lake Elsinore on the 13th day of November, and was finally passed at a regular meeting of the City Council of the City of Lake Elsinore held on the 27th day of November , by the following roll call vote: AYES: COUNCILMEMBER THOMAS BUCKLEY, COUNCILMEMBER GENIE KELLEY, MAYOR PRO TEM DARYL HICKMAN, MAYOR ROBERT E. MAGEE NOES: NONE ABSENT: COUNCILMEMBER ROBERT SCHIFFNER ABST AI N: NONE [ _ L L_ VIVIAN M. MUNSON CITY CLERK 12 ORDINANCE NO. 1238 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, AMENDING SECTION 9.96.140 OF THE LAKE ELSINORE MUNCIPAL CODE REGARDING USE OF HYDROPLANE VESSELS WHEREAS, the City desires to provide various recreational uses on the waters of Lake Elsinore; and WHEREAS, such divergent recreational uses may present inherent safety issues requiring the City to regulate the time and place of such uses so that all recreational uses have a reasonable opportunity to enjoy the benefits of the Lake in a safe manner; and WHEREAS, the City seeks to regulate certain high speed vessels in order to insure that appropriate safety precautions are implemented and safety personnel are readily available when these vessels are using the Lake; and WHEREAS, the City Council wishes to amend Section 9.96.140 of the Lake Elsinore Municipal Code. NOW, THEREFORE, THE CITY COUNCil OF THE CITY OF lAKE ELSINORE, CALIFORNIA, DOES HEREBY ORDAIN AS FOllOWS: SECTION 1. That Section 9.96.140 of the Lake Elsinore Municipal Code shall be amended to add subpart G as follows: G. No person shall operate a hydroplane vessel on Lake Elsinore, unless authorized pursuant to a special event permit as provided in Chapter 5.73. For purposes of this subpart G, a hydroplane vessel means a motorboat that has been designed to rise out of the water and skim along the surface when the vessel is traveling at high speeds. SECTION 2. SEVERABILITY. If any provision, clause, sentence or paragraph of this Ordinance or the application thereof to any person or circumstance shall be held invalid, such invalidity shall not affect the other provisions of this Ordinance and are hereby declared to be severable. SECTION 3. EFFECTIVE DATE. 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. 1 PASSED, APPROVED, AND ADOPTED at a regular meeting of the City Council of the City of Lake Elsinore, California, on this 11th day of December 2007, upon the following roll call vote: RT E. MAGE MAYOR tST: L L- VIVIAN M. MUNSON CITY CLERK STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE )ss. CITY OF LAKE ELSINORE ) I, VIVIAN M. MUNSON, City Clerk of the City of Lake Elsinore, California, hereby certify that the foregoing Ordinance No. 1238 was introduced at a regular meeting of the City Council of the City of Lake Elsinore on the 27th day of November 2007, and was finally passed at a regular meeting of the City Council of the City of Lake Elsinore held on the 11th day of December 2007 by the following roll call vote: AYES: Mayor Magee, Mayor Pro Tern Hickman, Councilmember Buckley, Councilmember Kelley, Councilmember Schiffner NOES: None ABSENT: None ABSTAIN: None ( L_ LJ_ VIVIAN M. MUNSON CITY CLERK 2