HomeMy Public PortalAboutOrdinance 905ORDINANCE NO. 905
ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BEAUMONT
AUTHORIZING THE LEVY OF A SERVICES SPECIAL TAX AND A
SPECIAL TAX WITHIN IMPROVEMENT AREA NO. 17B OF
COMMUNITY FACILITIES DISTRICT NO. 93-1
WHEREAS, the City Council of the City of Beaumont (respectively, the "City
Council" and the "City") duly adopted Resolutions establishing "City of Beaumont Community
Facilities District No. 93-1" (the "CFD"), including separate improvement areas, and authorizing
the levy of special taxes to pay for services and for certain public facilities for the Community
Facilities District under and pursuant to the terms and provisions of the Mello -Roos Community
Facilities Act of 1982, as amended (the "Act"), being Chapter 2.5, Part 1, Division 2, Title 5 of
the Government Code of the State of California (the "Code"); and
WHEREAS, on October 3, 2006, the City Council adopted Resolution No. 2006-
55 stating its intention to annex and establish Improvement Area No. 17B of the CFD
("Improvement Area No. 17B" or the "Improvement Area") to finance a portion of the cost of
providing street maintenance and sweeping, parkway and median landscaping maintenance,
street lighting and traffic signal operations and maintenance, storm water facility operation and
maintenance, open space and multipurpose trails maintenance within easements, public rights-of-
way, green belts and open space, storm drain, water quality and flood control facilities that are in
addition to those provided in the territory prior to the formation of the Improvement Area (the
"Services"), 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 October 3, 2006, the Council also adopted Resolution No. 2006-
56 stating its intention and the necessity to incur bonded indebtedness in the amount of not to
exceed $25,000,000 for Improvement Area No. 17B 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 establish the Improvement Area, to levy the Special Tax, to establish and
appropriations limit and to incur bonded indebtedness in the amount not to exceed $25,000,000
for the Improvement Area; and
WHEREAS, on November 21, 2006 (continued from October 17, 2006) the City
Council held a duly noticed public hearing as required by law relative to the determination to
proceed with the establishment of the Improvement Area, the rate and method of apportionment
and manner of collection of the special tax to be levied within the Improvement Area to pay for
the Services and for the Facilities, including the special tax to be levied within the Improvement
Area to pay the principal and interest on the proposed bonded indebtedness of the Improvement
Area, 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
BMT17B Ordinance No.905a.DOC
WHEREAS, at said hearing all persons desiring to be heard on all matters
pertaining to the establishment of the Improvement Area, the levy of the Special Tax and the
incurring of bonded indebtedness by the Improvement Area were heard and a full and fair
hearing was held; and
WHEREAS, the Council subsequent to said hearing adopted Resolution No.
2006-66 which determined the validity of prior proceedings and called an election within the
Improvement Area for November 21, 2006 on the proposition of levying a special tax, setting an
appropriations limit and establishing the Improvement Area; and
WHEREAS, the Council subsequent to said hearing adopted Resolution No.
2006-67 which called an election within the Improvement Area for November 21, 2006 on the
proposition of incurring bonded indebtedness in an amount not to exceed $25,000,000; and
WHEREAS, on November 21, 2006, an election was held within the
Improvement Area in which the qualified electors approved by more than two-thirds vote the
proposition of levying a special tax, setting an appropriations limit, and incurring bonded
indebtedness;
THE CITY COUNCIL OF THE CITY OF BEAUMONT DOES ORDAIN
AS FOLLOWS:
SECTION 1. A special tax (the "Services Special Tax") is levied within the
boundaries of the Improvement Area pursuant to the Rate and Method of Apportionment of
Special Tax (the "Rate and Method") 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 related thereto.
SECTION 2. A special tax (the "Special Tax") is levied within the boundaries of
the Improvement Area pursuant to the formulas set forth in the Rate and Method 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 the Rate and Method.
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. 2006-66 of the City Council
(Resolution of Formation).
SECTION 5. The above authorized Services Special Tax and the Special Tax
shall be collected in the same manner as ordinary ad valorem taxes are collected and shall be
subject to the same penalties and the same procedure and sale in cases of delinquency provided
for ad valorem taxes; provided, however, that the CFD may collect the Services Special Tax and
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BMT17B Ordinance No.905a.DOC
the Special Tax at a different time or in a different manner if necessary to meet its financial
obligations.
SECTION 6. The Mayor shall sign this ordinance and the City Clerk shall attest
to such signature. The City Clerk is directed to cause the 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 City 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.
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BMT17B Ordinance No.905a.DOC
MOVED AND PASSED upon first reading this 21st day of November, 2006 by
the following roll call vote:
AYES: Mayor Fox, Council Members DeForge, Berg, Dressel.
NOES: None.
ABSTAIN: None.
ABSENT: Council Member Killough
MOVED, PASSED AND ADOPTED this 5th day of December, 2006 by the
following roll call vote:
AYES: Mayor Pro Tem DeForge, Council Members Berg, Dressel, and Killough.
NOES: None.
ABSTAIN: None.
ABSENT: Mayor Fox
Ma ; s r of ! Citys f ont
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BMT17B Ordinance No.905a.DOC
EXHIBIT A
RATE AND METHOD OF APPORTIONMENT FOR
IMPROVEMENT AREA NO. 17B (TOURNAMENT HILLS) OF
COMMUNITY FACILITIES DISTRICT NO. 93-1
OF THE CITY OF BEAUMONT
A Special Tax as hereinafter defined shall be levied on and collected in Improvement Area No. 17B ("IA
No. 17B") of Community Facilities District No. 93-1 of the City of Beaumont ("CFD No. 93-1") each
Fiscal Year, in an amount determined by the City Council of the City of Beaumont through the
application of the appropriate Special Tax for "Developed Property," "Final Map Property," and
"Undeveloped Property," as described below. All of the real property in IA No. 17B of CFD No. 93-1,
unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent, and in
the manner herein provided.
SECTION A
DEFINITIONS
The terms hereinafter set forth have the following meanings:
"Acre or Acreage" means the land area of an Assessor's Parcel as shown on an Assessor's Parcel Map,
or if the land area is not shown on an Assessor's Parcel Map, the land area shown on the applicable fmal
map, parcel map, condominium plan, or other recorded County parcel map. The square footage of an
Assessor's Parcel is equal to the Acreage multiplied by 43,560.
"Act" means the Mello -Roos Communities Facilities Act of 1982 as amended, being Chapter 2.5,
Division 2 of Title 5 of the Government Code of the State of California.
"Administrative Expenses" means any ordinary and necessary expense incurred by the City to carry out
the administration of IA No. 17B of CFD No. 93-1 related to the determination of the amount of the levy
of Special Taxes, the collection of Special Taxes including the expenses of collecting delinquencies, the
administration of Bonds, the payment of salaries and benefits of any City employee whose duties are
directly related to the administration of IA No. 17B, and costs otherwise incurred in order to carry out the
authorized purposes of IA No. 17B.
"Assessor's Parcel" means a lot or parcel of land designated on an Assessor's Parcel Map with an
assigned Assessor's Parcel Number within the boundaries of CFD No. 93-1.
"Assessor's Parcel Map" means an official map of the Assessor of the County designating parcels by
Assessor's Parcel Number.
"Assessor's Parcel Number" means that number assigned to an Assessor's Parcel by the County for
purposes of identification.
"Assigned Special Tax for Facilities" means the Special Tax of that name described in Section D below.
"Backup Special Tax for Facilities" means the Special Tax of that name described in Section E below.
"Bonds" means any obligation to repay a sum of money, including obligations in the form of bonds,
notes, certificates of participation, long-term leases, loans from government agencies, or loans from
City of Beaumont November 13, 2006
Community Facilities District No. 93-1 (Improvement Area No. 17B) Page A-1
banks, other financial institutions, private businesses, or individuals, or long-term contracts, or any
refunding thereof, to which Special Taxes for Facilities have been pledged.
"Building Permit" means a permit for new construction for a residential dwelling or non-residential
structure. For purposes of this definition, `Building Permit" shall not include permits for construction or
installation of retaining walls, utility improvements, or other such improvements not intended for human
habitation.
"Building Square Footage" or "BSF" means the square footage of assessable internal living space,
exclusive of garages or other structures not used as living space, as determined by reference to the
building permit application for such Assessor's Parcel.
"Calendar Year" means the period commencing January 1 of any year and ending the following
December 31.
"CFD Administrator" means an official of the City, or designee thereof, responsible for determining the
Special Tax Requirement and providing for the levy and collection of the Special Taxes.
"CFD No. 93-1" means Community Facilities District No. 93-1 established by the City under the Act.
"City" means the City of Beaumont.
"City Council" means the City Council of the City, acting as the Legislative Body of CFD No. 93-1, or
its designee.
"Consumer Price Index" means the index published monthly by the U.S. Department of Labor, Bureau
of Labor Statistics for all urban consumers in the Los Angeles -Riverside -Orange County area.
"County" means the County of Riverside.
"Developed Property" means all Assessor's Parcels that: (i) were issued Building Permits on or before
June 1St preceding the Fiscal Year in which the Special Tax is being levied, and (ii) were created on or
before the January 1St preceding the Fiscal Year in which the Special Tax is being levied, and that each
such Assessor's Parcel is associated with a Lot, as reasonably determined by the City.
"Exempt Property" means all Assessor's Parcels designated as being exempt from Special Tax as
determined in Section J.
"Final Map" means a subdivision of property evidenced by the recordation of a fmal map, parcel map, or
lot line adjustment, pursuant to the Subdivision Map Act (California Government Code Section 66410 et
seq.) or the recordation of a condominium plan pursuant to California Civil Code 1352 that creates
individual lots for which Building Permits may be issued without further subdivision.
"Final Map Property" means all Assessor's Parcels: (i) that are included in a Final Map that was
recorded prior to the June 1St preceding the Fiscal Year in which the Special Tax is being levied, and (ii)
for which a Building Permit was not issued prior to the June 1St preceding the Fiscal Year in which the
Special Tax is being levied.
"Fiscal Year" means the period commencing on July 1 of any year and ending the following June 30.
"Improvement Area No. 17B" or "IA No. 17B" means Improvement Area No. 17B as depicted on the
boundary map of CFD No. 93-1.
City of Beaumont November 13, 2006
Community Facilities District No. 93-1 (Improvement Area No. 17B) Page A-2
"Lot" means an individual legal lot created by a Final Map, identified by an Assessor's Parcel Number
for which a Building Permit could be issued.
"Maximum Special Tax" means the Maximum Special Tax for Facilities and Maximum Special Tax for
Services.
"Maximum Special Tax for Facilities" means the maximum Special Tax, determined in accordance
with Section C that can be levied by CFD No. 93-1 in any Fiscal Year on any Assessor's Parcel.
"Maximum Special Tax for Services" means the maximum Special Tax, determined in accordance with
Section C that can be levied by CFD No. 93-1 in any Fiscal Year on any Assessor's Parcel.
"Non -Residential Property" means all Assessor's Parcels of Developed Property for which a Building
Permit was issued for any type of non-residential use.
"Operating Fund" means a fund that shall be maintained for IA No. 17B of CFD No. 93-1 for any Fiscal
Year to pay for the actual costs of maintenance, repair, and replacement of the Service Area, and the
Administrative Expenses.
"Operating Fund Balance" means the amount of funds in the Operating Fund at the end of the
preceding Fiscal Year.
"Partial Prepayment Amount" means the amount required to prepay a portion of the Special Tax for
Facilities obligation for an Assessor's Parcel, as described in Section H.
"Prepayment Amount" means the amount required to prepay the Special Tax for Facilities obligation in
full for an Assessor's Parcel, as described in Section G.
"Proportionately" means that (i) the ratio of the actual Special Tax for Facilities levy to the applicable
Assigned Special Tax for Facilities is equal for all applicable Assessor's Parcels and (ii) the ratio of the
actual Special Tax for Services levy to the applicable Maximum Special Tax for Services is equal for all
applicable Assessor's Parcels. In case of Developed Property subject to the apportionment of the Special
Tax for Facilities under step four of Section F, "Proportionately" in step four means that the quotient of
(a) the actual Special Tax for Facilities levy less the Assigned Special Tax for Facilities divided by (b) the
Backup Special Tax for Facilities less the Assigned Special Tax for Facilities, is equal for all applicable
Assessor's Parcels.
"Residential Property" means all Assessor's Parcels of Developed Property for which a Building Permit
has been issued for purposes of constructing one or more residential dwelling units.
"Service Area" means the landscape parkways, neighborhood and City parks, easements and green belts
within the boundaries of IA No. 17B and the City of Beaumont, and IA No. 17B's fair share of storm
drain and flood control facilities.
"Special Tax" means Special Tax for Facilities and Special Tax for Services.
"Special Tax for Facilities" means any of the special taxes authorized to be levied by CFD No. 93-1
pursuant to the Act to fund the Special Tax Requirement for Facilities.
"Special Tax for Services" means any of the special taxes authorized to be levied by CFD No. 93-1
pursuant to the Act to fund the Special Tax Requirement for Services.
City of Beaumont November 13, 2006
Community Facilities District No. 93-1 (Improvement Area No. 17B) Page A-3
"Special Tax Requirement" means Special Tax Requirement for Facilities and Special Tax Requirement
for Services.
"Special Tax Requirement for Facilities" means the amount required in any Fiscal Year for IA No. 17B
to pay: (i) the debt service or the periodic costs on all outstanding Bonds due in the Calendar Year that
commences in such Fiscal Year, (ii) Administrative Expenses, (iii) the costs associated with the release of
funds from an escrow account, (iv) any amount required to establish or replenish any reserve funds
established in association with the Bonds, and (v) the collection or accumulation of funds for the
acquisition or construction of facilities authorized by IA No. 17B provided that the inclusion of such
amount does not cause an increase in the levy of Special Tax for Facilities on Final Map Property or
Undeveloped Property, less (vi) any amount available to pay debt service or other periodic costs on the
Bonds pursuant to any applicable bond indenture, fiscal agent agreement, or trust agreement.
"Special Tax Requirement for Services" means the amount determined in any Fiscal Year for IA No.
17B equal to (i) the budgeted costs of the maintenance, repair and replacement of the Service Area which
have been accepted and maintained or are reasonably expected to be accepted and maintained during the
current Fiscal Year, (ii) Administrative Expenses, and (iii) anticipated delinquent Special Taxes for
Services based on the delinquency rate in IA No. 17B for the previous Fiscal Year, less (iv) the Operating
Fund Balance.
"Taxable Property" means all Assessor's Parcels within CFD No. 93-1 which are not Exempt Property.
"Undeveloped Property" means all Assessor's Parcels of Taxable Property which are not Developed
Property or Final Map Property.
"Zone A" means a specific geographic area designated as planning area 7, tract no. 31288-1, and as
depicted on the Proposed Boundary Map.
"Zone B" means a specific geographic area designated as planning areas 8, 9, and 14, tracts 31288-2, -3,
and -4, and as depicted on the Proposed Boundary Map.
SECTION B
CLASSIFICATION OF ASSESSOR'S PARCELS
Each Fiscal Year, beginning with Fiscal Year 2006-2007, each Assessor's Parcel within IA No. 17B shall
be classified as Taxable Property or Exempt Property. In addition, each Assessor's Parcel of Taxable
Property shall be further classified as Developed Property, Final Map Property or Undeveloped Property.
Lastly, each Assessor's Parcel of Developed Property shall further be classified as Residential Property or
Non Residential Property.
SECTION C
MAXIMUM SPECIAL TAXES
Developed Property
a. The Maximum Special Tax for Facilities for each Assessor's Parcel of Residential Property
that is classified as Developed Property in any Fiscal Year shall be the amount determined
by the greater of (i) the application of the Assigned Special Tax for Facilities in Table 1 or
(ii) the application of the Backup Special Tax for Facilities. The Maximum Special Tax for
Facilities for each Assessor's Parcel of Non -Residential Property that is classified as
City of Beaumont November 13, 2006
Community Facilities District No. 93-1 (Improvement Area No. 17B) Page A-4
Developed Property in any Fiscal Year shall be the Assigned Special Tax for Facilities in
Table 1 of Section D.
b. Prior to the issuance of Bonds, the Assigned Special Tax for Facilities on Developed Property
set forth in Table 1 and the Assigned Special Tax for Facilities on Final Map Property and
Undeveloped Property set forth in Section D.2 may be reduced in accordance with, and
subject to the conditions set forth in this paragraph. If it is reasonably determined by the
CFD Administrator that the overlapping debt burden (as defined in the Statement of Goals
and Policies for the Use of the Mello -Roos Community Facilities Act of 1982 adopted by the
City Council, the "Goals and Policies") calculated pursuant to the Goals and Policies
exceeds the City's maximum level objective set forth in such document, the Maximum
Special Tax for Facilities on Developed Property may be reduced (by modifying Table 1) to
the amount necessary to satisfy the City's objective with respect to the maximum
overlapping debt burden level with the written consent of the CFD Administrator. In order to
reduce the Maximum Special Tax for Facilities on Developed Property it may be necessary
to reduce the Maximum Special Tax for Facilities for Final Map Property and Undeveloped
Property. The reductions permitted pursuant to this paragraph shall be reflected in an
amended Notice of Special Tax Lien which the City shall cause to be recorded by executing
a certificate in substantially the form attached hereto as Attachment No. 1.
c. The Maximum Special Tax for Services for each Assessor's Parcel of Residential Property
that is classified as Developed Property for Fiscal Year 2006-2007 shall be $259 per
dwelling unit. The Maximum Special Tax for Services for each Assessor's Parcel of Non -
Residential Property that is classified as Developed Property for Fiscal Year 2006-2007 shall
be $1,638 per Acre. On each July 1, commencing July 1, 2007, the Maximum Special Tax
for Services for the prior Fiscal Year shall be adjusted by an amount equal to the percentage
change in the Consumer Price Index for the Calendar Year ending in December of the prior
Fiscal Year.
Final Map Property
a. The Maximum Special Tax for Facilities for each Assessor's Parcel classified as Final Map
Property shall be the Assigned Special Tax for Facilities in Section D.
b. The Maximum Special Tax for Services for each Assessor's Parcel classified as Final Map
Property in Fiscal Year 2006-2007 shall be $1,638 per Acre. On each July 1, commencing
July 1, 2007, the Maximum Special Tax for Services for the prior Fiscal Year shall be
adjusted by an amount equal to the percentage change in the Consumer Price Index for the
Calendar Year ending in December of the prior Fiscal Year.
Undeveloped Property
The Maximum Special Tax for Facilities for each Assessor's Parcel classified as Undeveloped
Property shall be the Assigned Special Tax for Facilities in Section D.
City of Beaumont November 13, 2006
Community Facilities District No. 93-1 (Improvement Area No. 17B) Page A-5
SECTION D
ASSIGNED SPECIAL TAX FOR FACILITIES
1. Developed Property
Each Fiscal Year, each Assessor's Parcel of Developed Property shall be subject to an Assigned
Special Tax for Facilities. The Assigned Special Tax for Facilities applicable to an Assessor's
Parcel of Developed Property within Zone A and Zone B for any Fiscal Year shall be determined
pursuant to Table 1 below.
TABLE 1
ASSIGNED SPECIAL TAX RATES FOR FACILITIES FOR DEVELOPED PROPERTY
Land Use Type
Building Square Footage
Assigned Special Tax for
Facilities for Fiscal Year
2006-2007
Residential Property
Less than 2,000
$1,785 per dwelling unit
Residential Property
2,000 — 2,200
$1,912 per dwelling unit
Residential Property
2,201 — 2,400
$1,975 per dwelling unit
Residential Property
2,401 — 2,600
$2,007 per dwelling unit
Residential Property
2,601 — 2,800
$2,039 per dwelling unit
Residential Property
2,801 — 3,200
$2,102 per dwelling unit
Residential Property
3,201 — 3,600
$2,766 per dwelling unit
Residential Property
Greater than 3,600
$3,100 per dwelling unit
Non -Residential Zone A
N/A
$13,574 per Acre
Non -Residential Zone B
N/A
$10,458 per Acre
2. Final Map Property and Undeveloped Property
Each Fiscal Year, each Assessor's Parcel of Final Map Property and Undeveloped Property shall
be subject to an Assigned Special Tax for Facilities. The Assigned Special Tax for Facilities for
an Assessor's Parcel classified as Final Map Property or Undeveloped Property for Fiscal Year
2006-2007 shall be $13,574 per Acre for Zone A and $10,458 per Acre for Zone B.
3. Increase in the Assigned Special Tax for Facilities
On each July 1, commencing on July 1, 2007, the Assigned Special Tax for Facilities for each Assessor's
Parcel of Developed Property, Non Residential Property, Final Map Property, and Undeveloped Property
shall be increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year.
SECTION E
BACKUP SPECIAL TAXES FOR FACILITIES
Each Fiscal Year, each Assessor's Parcel of Developed Property classified as Residential Property shall
be subject to a Backup Special Tax for Facilities. In each Fiscal Year, the Backup Special Tax for
Facilities rate for Developed Property classified as Residential Property within a Final Map shall be the
rate per Lot calculated according to the following formula:
City of Beaumont November 13, 2006
Community Facilities District No. 93-1 (Improvement Area No. 17B) Page A-6
B=
RxA
L
The terms above have the following meanings:
B = Backup Special Tax for Facilities per Lot in each Fiscal Year
R = Maximum Special Tax for Facilities rate per Acre for Undeveloped Property for
the applicable Fiscal Year
A = Acreage of Developed Property classified or to be classified as
Residential Property in such Final Map.
L = Lots in the Final Map which are classified or to be classified as
Residential Property.
Each July 1, commencing on July 1, 2007, the Backup Special Tax for each Assessor's Parcel shall be
increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year.
Notwithstanding the foregoing, if all or any portion of the Final Map(s) described in the preceding
paragraph is subsequently changed or modified, then the Backup Special Tax for Facilities for each
Assessor's Parcel of Developed Property classified or to be classified as Residential Property in such
Final Map area that is changed or modified shall be a rate per square foot of Acreage calculated as
follows:
1. Determine the total Backup Special Tax for Facilities anticipated to apply to the changed
or modified Final Map area prior to the change or modification.
2. The result of paragraph 1 above shall be divided by the Acreage of Developed Property
classified or to be classified as Residential Property which is ultimately expected to exist
in such changed or modified Final Map area, as reasonably determined by the City.
3. The result of paragraph 2 above shall be divided by 43,560. The result is the Backup
Special Tax for Facilities per square foot of Acreage which shall be applicable to
Assessor's Parcels of Developed Property classified as Residential Property in such
changed or modified Final Map area for all remaining Fiscal Years in which the Special
Tax for Facilities may be levied.
SECTION F
METHOD OF APPORTIONMENT OF THE SPECIAL TAX FOR FACILITIES AND THE
SPECIAL TAX FOR SERVICES
1. Commencing Fiscal Year 2006-2007 and for each subsequent Fiscal Year, the City Council shall
levy a Special Tax for Facilities on all Taxable Property within IA No. 17B until the amount of
Special Tax for Facilities equals the Special Tax Requirement for Facilities in accordance with the
following steps:
Step One: The Special Tax for Facilities shall be levied Proportionately on each Assessor's
Parcel of Developed Property at up to 100% of the applicable Assigned Special Tax
for Facilities rates in Table 1 as needed to satisfy the Special Tax Requirement for
Facilities.
City of Beaumont November 13, 2006
Community Facilities District No. 93-1 (Improvement Area No. 17B) Page A-7
Step Two: If additional moneys are needed to satisfy the Special Tax Requirement for Facilities
after the first step has been completed, the Special Tax for Facilities shall be levied
Proportionately on each Assessor's Parcel of Final Map Property, at up to 100% of
the Assigned Special Tax for Facilities applicable to each such Assessor's Parcel as
needed to satisfy the Special Tax Requirement for Facilities.
Step Three: If additional moneys are needed to satisfy the Special Tax Requirement for Facilities
after the first two steps have been completed, the Special Tax for Facilities shall be
levied Proportionately on each Assessor's Parcel of Undeveloped Property,
excluding any Undeveloped Property pursuant to Section J, at up to 100% of the
Assigned Special Tax for Facilities applicable to each such Assessor's Parcel as
needed to satisfy the Special Tax Requirement for Facilities.
Step Four: If additional moneys are needed to satisfy the Special Tax Requirement for Facilities
after the first three steps have been completed, then for each Assessor's Parcel of
Developed Property whose Maximum Special Tax for Facilities is the Backup
Special Tax for Facilities shall be increased Proportionately from the Assigned
Special Tax for Facilities up to 100% of the Backup Special Tax for Facilities as
needed to satisfy the Special Tax Requirement for Facilities.
Step Five: If additional moneys are needed to satisfy the Special Tax Requirement for Facilities
after the first four steps have been completed, the Special Tax for Facilities shall be
levied Proportionately on each Assessor's Parcel of Undeveloped Property classified
as Undeveloped Property pursuant to Section J at up to 100% of the Assigned
Special Tax for Facilities applicable to each such Assessor's Parcel as needed to
satisfy the Special Tax Requirement for Facilities.
2. Commencing Fiscal Year 2006-2007 and for each subsequent Fiscal Year, the City Council shall
levy a Special Tax for Services on all Taxable Property within IA No. 17B until the amount of
Special Tax for Services equals the Special Tax Requirement for Services in accordance with the
following steps:
Step One:
Step Two:
The Maximum Special Tax for Services shall be levied Proportionately on each
Assessor's Parcel of Developed Property at up to 100% of the applicable Maximum
Special Tax for Services as needed to satisfy the Special Tax Requirement for
Services.
If additional moneys are needed to satisfy the Special Tax Requirement for Services
after the first step has been completed, the Maximum Special Tax for Services shall
be levied Proportionately on each Assessor's Parcel of Final Map Property, at up to
100% of the Maximum Special Tax for Services applicable to each such Assessor's
Parcel as needed to satisfy the Special Tax Requirement for Services.
Under no circumstances will the Special Tax for Facilities or the Special Tax for Services levied against
any Assessor's Parcel used as a private residence be increased as a consequence of delinquency or default
by the owner of any other Assessor's Parcel or Parcels within CFD No. 93-1 by more than ten
percent(10%) of the Special Tax that would be levied in that Fiscal Year, if there were no delinquencies,
pursuant to California Government Code Section 53321(d), as in effect on the date of formation of CFD
No. 93-1.
City of Beaumont November 13, 2006
Community Facilities District No. 93-1 (Improvement Area No. 17B) Page A-8
SECTION G
PREPAYMENT OF SPECIAL TAX FOR FACILITIES
The following definitions apply to this Section G:
"CFD Public Facilities" means $12,00,000 expressed in 2006 dollars, which shall increase by the
Construction Inflation Index on January 1, 2007, and on each January 1 thereafter, or such lower number
as (i) shall be determined by the City as sufficient to provide the public facilities under the authorized
bonding program for CFD No. 93-1, or (ii) shall be determined by the City Council concurrently with a
covenant that it will not issue any more Bonds to be supported by Special Taxes levied under this Rate
and Method of Apportionment.
"Construction Fund" means an account specifically identified in the Indenture or functionally
equivalent to hold funds which are currently available for expenditure to acquire or construct public
facilities eligible under CFD No. 93-1.
"Construction Inflation Index" means the annual percentage change in the Engineering News -Record
Building Cost Index for the City of Los Angeles, measured as of the Calendar Year which ends in the
previous Fiscal Year. In the event this index ceases to be published, the Construction Inflation Index
shall be another index as determined by the City that is reasonably comparable to the Engineering News -
Record Building Cost Index for the City of Los Angeles.
"Future Facilities Costs" means the CFD Public Facilities minus public facility costs available to be
funded through existing construction or escrow accounts or funded by the Outstanding Bonds, and minus
public facility costs funded by interest earnings on the Construction Fund actually earned prior to the date
of prepayment.
"Outstanding Bonds" means all previously issued bonds issued and secured by the levy of Special Tax
for Facilities which will remain outstanding after the first interest and/or principal payment date following
the current Fiscal Year, excluding bonds to be redeemed at a later date with the proceeds of prior
prepayments of the Maximum Special Tax for Facilities.
The Special Tax for Facilities obligation of an Assessor's Parcel of Developed Property, an Assessor's
Parcel of Final Map Property or Undeveloped Property for which a Building Permit has been issued
or an Assessor's Parcel of Undeveloped Property that is classified as Undeveloped Property pursuant
to Section J may be prepaid in full, provided that there are no delinquent Special Taxes, penalties, or
interest charges outstanding with respect to such Assessor's Parcel at the time the Special Tax for
Facilities obligation would be prepaid. The Prepayment Amount for an Assessor's Parcel eligible for
prepayment shall be determined as described below.
An owner of an Assessor's Parcel intending to prepay the Special Tax for Facilities obligation shall
provide the City with written notice of intent to prepay, and within 5 days of receipt of such notice,
the City shall notify such owner of the amount of the non-refundable deposit determined to cover the
cost to be incurred by CFD No. 93-1 in calculating the proper amount of a prepayment. Within 15
days of receipt of such non-refundable deposit, the City shall notify such owner of the prepayment
amount of such Assessor's Parcel.
City of Beaumont November 13, 2006
Community Facilities District No. 93-1 (Improvement Area No. 17B) Page A-9
The Prepayment Amount for each applicable Assessor's Parcel shall be calculated according to the
following formula (capitalized terms defined below):
Bond Redemption Amount
plus Redemption Premium
plus Future Facilities Amount
plus Defeasance
plus Administrative Fee
less Reserve Fund Credit
equals Prepayment Amount
As of the date of prepayment, the Prepayment Amount shall be calculated as follows:
1. For Assessor's Parcels of Developed Property, compute the Assigned Special
Taxes for Facilities and the Backup Special Taxes for Facilities applicable to the
Assessor's Parcel. For Assessor's Parcels of Final Map Property or Undeveloped
Property, excluding any Undeveloped Property pursuant to Section J, compute
the Assigned Special Tax for Facilities and the Backup Special Tax for Facilities
applicable to the Assessor's Parcel as though it was already designated as
Developed Property based upon the Building Permit issued or to be issued for
that Assessor's Parcel. For Assessor's Parcels classified as Undeveloped
Property pursuant to Section J, compute the Assigned Special Tax for Facilities.
2. For each Assessor's Parcel of Developed Property, Final Map Property,
Undeveloped Property, or Undeveloped Property pursuant to Section J to be
prepaid, (a) divide the Assigned Special Tax for Facilities computed pursuant to
paragraph 1 for such Assessor's Parcel by the sum of the estimated Assigned
Special Tax for Facilities applicable to all Assessor's Parcels of Taxable Property
at buildout, as reasonably determined by the City, and (b) divide the Backup
Special Tax for Facilities computed pursuant to paragraph 1 for such Assessor's
Parcel by the sum of the estimated Backup Special Tax for Facilities applicable
to all Assessor's Parcels of Taxable Property at buildout, as reasonably
determined by the City.
3. Multiply the larger quotient computed pursuant to paragraph 2(a) or 2(b) by
Outstanding Bonds. The product shall be the "Bond Redemption Amount."
4. Multiply the Bond Redemption Amount by the applicable redemption premium,
if any, on the Outstanding Bonds to be redeemed with the proceeds of the Bond
Redemption Amount. This product is the "Redemption Premium."
5. Compute the Future Facilities Cost.
6. Multiply the larger quotient computed pursuant to paragraph 2 (a) or 2 (b) by the
amount determined pursuant to paragraph 5 to determine the Future Facilities
Cost to be prepaid (the "Future Facilities Amount").
7. Compute the amount needed to pay interest on the Bond Redemption Amount to
be redeemed with the proceeds of the Prepayment Amount until the earliest call
date for the Outstanding Bonds.
City of Beaumont November 13, 2006
Community Facilities District No. 93-1 (Improvement Area No. 17B) Page A-10
8. Estimate the amount of interest earnings to be derived from the reinvestment of
the Bond Redemption Amount plus the Redemption Premium until the earliest
call date for the Outstanding Bonds.
9. Subtract the amount computed pursuant to paragraph 8 from the amount
computed pursuant to paragraph 7. This difference is the "Defeasance."
10. Estimate the administrative fees and expenses associated with the prepayment,
including the costs of computation of the Prepayment Amount, the costs of
redeeming Bonds, and the costs of recording any notices to evidence the
prepayment and the redemption. This amount is the "Administrative Fee."
11. Calculate the "Reserve Fund Credit" as the lesser of: (a) the expected reduction
in the applicable reserve requirements, if any, associated with the redemption of
Outstanding Bonds as a result of the prepayment, or (b) the amount derived by
subtracting the new reserve requirements in effect after the redemption of
Outstanding Bonds as a result of the prepayment from the balance in the
applicable reserve funds on the prepayment date. Notwithstanding the foregoing,
if the reserve fund requirement is satisfied by a surety bond or other instrument at
the time of the prepayment, then no Reserve Fund Credit shall be given.
Notwithstanding the foregoing, the Reserve Fund Credit shall in no event be less
than O.
12. The Prepayment Amount is equal to the sum of the Bond Redemption Amount,
the Redemption Premium, the Future Facilities Amount, the Defeasance, and the
Administrative Fee, less the Reserve Fund Credit.
With respect to the Special Tax for Facilities obligation that is prepaid pursuant to this Section G, the City
Council shall indicate in the records of CFD No. 93-1 that there has been a prepayment of the Special Tax
for Facilities obligation and shall cause a suitable notice to be recorded in compliance with the Act within
thirty (30) days of receipt of such prepayment to indicate the prepayment of the Special Tax for Facilities
obligation and the release of the Special Tax for Facilities lien on such Assessor's Parcel, and the
obligation of such Assessor's Parcel to pay such Special Taxes for Facilities shall cease.
Notwithstanding the foregoing, no prepayment will be allowed unless the amount of Special Tax for
Facilities that may be levied on Taxable Property, net of Administrative Expenses, shall be at least 1.1
times the regularly scheduled annual interest and principal payments on all currently Outstanding Bonds
in each future Fiscal Year.
SECTION H
PARTIAL PREPAYMENT OF SPECIAL TAX FOR FACILITIES
The Special Tax for Facilities obligation of an Assessor's Parcel of Developed Property or an Assessor's
Parcel of Undeveloped Property for which a Building Permit has been issued and will be classified as
Developed Property in the next Fiscal Year, as calculated in this Section H below, may be partially
prepaid, provided that there are no delinquent Special Taxes, penalties, or interest charges outstanding
with respect to such Assessor's Parcel at the time the Special Tax for Facilities obligation would be
prepaid.
City of Beaumont November 13, 2006
Community Facilities District No. 93-1 (Improvement Area No. 17B) Page A-11
The Partial Prepayment Amount shall be calculated according to the following formula:
PP = ((PG — A) x F) + A
The terms above have the following meanings:
PP = the Partial Prepayment Amount.
PG = the Prepayment Amount calculated according to Section G.
F = the percent by which the owner of the Assessor's Parcel is partially prepaying the
Special Tax for Facilities obligation.
A = the Administrative Fee calculated according to Section G.10.
With respect to any Assessor's Parcel that is partially prepaid, the City Council shall indicate in the
records of CFD No. 93-1 that there has been a partial prepayment of the Special Tax for Facilities
obligation and shall cause a suitable notice to be recorded in compliance with the Act within thirty (30)
days of receipt of such partial prepayment of the Special Tax for Facilities obligation, to indicate the
partial prepayment of the Special Tax for Facilities obligation and the partial release of the Special Tax
for Facilities lien on such Assessor's Parcel, and the obligation of such Assessor's Parcel to pay such
prepaid portion of the Special Tax for Facilities for shall cease.
MANDATORY PARTIAL PREPAYMENT: Prior to the close of escrow for the first transfer of title of
any Developed Parcel after the date on which a Certificate of Occupancy for such Parcel was issued by
the City, the Maximum Special Tax shall be subject to mandatory partial prepayment in a amount
necessary to bring the Total Property Tax Burden for the then -current Fiscal Year to an amount less than
or equal to 2% of the sale price of the Parcel. The amount required shall be due and payable upon transfer
of title. No prepayment shall be required if the Total Property Tax Burden is not in excess of the 2% limit.
The Builder shall notify the City in writing of the mandatory partial prepayment requirement at least 30
days prior to close of escrow. The City shall calculate and determine the prepayment amount using the
methodology for a partial prepayment herein, such that the partial prepayment shall be in the exact
percentage required for a Total Property Tax Burden not in excess of the 2% limit.
Notwithstanding the foregoing, no partial prepayment will be allowed unless the amount of Special Tax
for Facilities that may be levied on Taxable Property after such partial prepayment, net of Administrative
Expenses, shall be at least 1.1 times the regularly scheduled annual interest and principal payments on all
currently Outstanding Bonds in each future Fiscal Year.
SECTION I
TERMINATION OF SPECIAL TAX
For each Fiscal Year that any Bonds are outstanding the Special Tax for Facilities shall be levied on
all Assessors' Parcels subject to the Special Tax for Facilities. If any delinquent Special Tax for
Facilities remain uncollected prior to or after all Bonds are retired, the Special Tax for Facilities may
be levied to the extent necessary to reimburse CFD No. 93-1 for uncollected Special Tax for Facilities
associated with the levy of such Special Taxes for Facilities, but not later than the 2050-2051 Fiscal
Year. The Special Tax for Services shall be levied as long as it is needed to meet the Special Tax
Requirement for Services, as determined at the sole discretion of the City Council.
City of Beaumont November 13, 2006
Community Facilities District No. 93-1 (Improvement Area No. 17B) Page A-12
SECTION J
EXEMPTIONS
The City shall classify as Exempt Property (i) Assessor's Parcels owned by the State of California,
Federal or other local governments, (ii) Assessor's Parcels which are used as places of worship and are
exempt from ad valorem property taxes because they are owned by a religious organization, (iii)
Assessor's Parcels used exclusively by a homeowner's association, or (iv) Assessor's Parcels with public
or utility easements making impractical their utilization for other than the purposes set forth in the
easement, provided that no such classification would reduce the sum of all Taxable Property to less than
17.48 Acres for Zone A and 55.54 Acres for Zone B. Notwithstanding the above, the City Council shall
not classify an Assessor's Parcel as Exempt Property if such classification would reduce the sum of all
Taxable Property to less than 17.48 Acres for Zone A and 55.54 Acres for Zone B. Assessor's Parcels
which cannot be classified as Exempt Property because such classification would reduce the Acreage of
all Taxable Property to less than 17.48 Acres for Zone A and 55.54 Acres for Zone B will continue to be
classified as Undeveloped Property, and will continue to be subject to Special Taxes accordingly.
SECTION K
APPEALS
Any property owner claiming that the amount or application of the Special Tax is not correct may file a
written notice of appeal with the City Council not later than twelve months after having paid the first
installment of the Special Tax that is disputed. A representative(s) of CFD No. 93-1 shall promptly
review the appeal, and if necessary, meet with the property owner, consider written and oral evidence
regarding the amount of the Special Tax, and rule on the appeal. If the representative's decision requires
that the Special Tax for an Assessor's Parcel be modified or changed in favor of the property owner, a
cash refund shall not be made (except for the last year of levy), but an adjustment shall be made to the
Special Tax on that Assessor's Parcel in the subsequent Fiscal Year(s).
The City Council may interpret this IA No. 17B and the levy of Special Taxes for the 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 binding as to all
persons.
SECTION L
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. 93-1 may collect the Special Tax at a different time or in
a different manner if necessary to meet its financial obligations.
City of Beaumont November 13, 2006
Community Facilities District No. 93-1 (Improvement Area No. 17B) Page A-13
Attachment No. 1
CITY OF BEAUMONT AND CFD NO. 93-1 IMPROVEMENT AREA 17B CERTIFICATE
1. Pursuant to Section _ of the Rate and Method of Apportionment of Special Tax (the "RMA"), the
City of Beaumont (the "City") and Community Facilities District No. 93-1 Improvement Area 17B of
the City of Beaumont ("CFD No. 93-1 IA 17B") hereby agree to a reduction in the Maximum Special
Tax for Facilities for Developed Property:
(a) The information in Table 1 relating to the Maximum Special Tax for Facilities for Developed
Property and/or Undeveloped Property within CFD No. 93-1 IA 17B shall be modified as follows:
[insert Table 1 showing effective change to special tax rates and/or insert change to special tax
rates for Undeveloped Property]
2. Table 1 may only be modified prior to the issuance of Bonds.
3. Upon execution of the Certificate by the City and CFD No. 93-1 IA 17B the City shall cause an
amended Notice of Special Tax Lien to be recorded reflecting the modifications set forth herein.
By execution hereof, the undersigned acknowledges, on behalf of the City of Beaumont and CFD No.
93-1 IA 17B, receipt of this Certificate and modification of the RMA as set forth in this Certificate.
CITY OF BEAUMONT
By: Date:
CFD Administrator
COMMUNITY FACILITIES DISTRICT NO. 93-1 IMPROVEMENT AREA 17B OF THE CITY OF
BEAUMONT
By: Date:
City of Beaumont November 13, 2006
Community Facilities District No. 93-1 (Improvement Area No. 17B) Page A-14
ORDINANCE NO, 906
AN ORDINANCE OF THE CITY OF BEAUMONT
REGARDING THE LICENSURE OF TOBACCO RETAILERS
ADDING CHAPTER 5.64 TO THE BEAUMONT MUNICIPAL CODE
The City Council of the City of Beaumont Ordains as Follows:
Section 1. PREAMBLE.
Prior to the adoption of this ordinance, the City Council reviewed the following
Statistics:
a. 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 Tight up for the first time and purchase 5 million packs of cigarettes a
year.
b. In a 2004 Califomia youth -buying survey, 12% of retailers surveyed
unlawfully sold tobacco product to minors.
c. The rate of tobacco sales to minors in Riverside County is one of the
highest in the State at 44%.
d. 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%.
e. 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 County to
regulate the operation of lawful businesses to discourage violations of
federal, state, and local tobacco -related laws.
f. 65% of California's key opinion leaders surveyed support implementation
of tobacco -licensing requirements.
Section 2. PURPOSE AND INTENT. Riverside County 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. 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 therefore.
Section 3. DEFINITIONS. For the purposes of this ordinance, the
following words and terms shall have the following meanings:
a. "Arm's Length Transaction" shall mean: 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.
b. "Department" shall mean: County Health Officer or his or her designee.
c. "Person" shall mean: any natural person, partnership, cooperative
association, corporation, personal representative, receiver, trustee,
assignee, or any other legal entity.
d. "Proprietor" shall mean: 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.
e. "Self -Service Display" shall mean: the open display of Tobacco Products
or Tobacco Paraphemalia 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.
f. "Smoking" shall mean: 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).
g. "Tobacco Paraphernalia" shall mean: 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.
h. "Tobacco Product" shall mean: (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" shall mean: any Person who sells, offers for sale, or
does or offers to exchange for any form of consideration, tobacco,
Tobacco Products, or Tobacco Paraphemalia; "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.
Section 4. 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,
including, for example, a revoked license:
1. Shall keep all Tobacco Products and Tobacco Paraphernalia from
public view. The public display of Tobacco Products or Tobacco
Paraphernalia in violation of this provision shall constitute an "offer
for sale" for the purposes of subsection 4.f.
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
County 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 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 10.d. 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 Retailers
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 Retailers 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.
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.
Section 5. LICENSE ISSUANCE; STANDARDS.
a. No license may issue to authorize Tobacco Retailing at other than a fixed
location. For example, 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 10.b. of this ordinance. However, this
subparagraph shall not constitute a basis for denial of a license if
the applicant provides the County 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 10.b. of this ordinance.
4. The application seeks authorization for Tobacco Retailing that is
prohibited pursuant to Section 5.a. of this ordinance, that is
unlawful pursuant to any other County ordinance, or that is unlawful
pursuant to any other local, state, or federal law.
Section 6. LICENSES NONTRANSFERABLE.
a. A Tobacco Retailer's license is nontransferable. If the information
required in the license application pursuant to Section 4 .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.
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
County 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.
Section 7. FEES FOR LICENSE.
a. A Tobacco Retailer 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 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.
Section 8. 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, if the purchaser reasonably appears under the age of twenty-
seven (27) years old, and confirming that the proposed sale is to a
purchaser who is at least the minimum age in 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 in state law for being sold or for possessing any Tobacco Product.
d. SELF-SERVICE DISPLAYS PROHIBITED. No Person shall display
Tobacco Products or Tobacco Paraphemalia 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.
Section 9. 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 shall check the compliance of each Tobacco
Retailer at least three (3) times per twelve (12) month period. The
Department may check the compliance of Tobacco Retailers
previously found to be in compliance a fewer number of times so
that the Department may check the compliance of Tobacco
Retailers previously found in violation a greater number of times.
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 County 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:
i. the Youth Decoy is participating in a compliance check
supervised by a peace officer or a code enforcement official;
or
ii. 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.
Section 10. REVOCATION OF LICENSE.
a. 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 County Hearing Officer
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. No attorney may take part in the defense of a license revocation
proceeding unless the attorney's participation meets any exception
for attorneys appearing in small claims court under California Code
of Civil Procedure section 116.530. This prohibition shall not apply
if the County elects to be represented by an attorney in the
proceeding and notice of the election is include in the notice given
pursuant to subsection (1) above.
3. For a first or second alleged License Violation within any sixty -
month (60) period, the County Counsel 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 Board of Supervisors. Settlements shall not be
confidential and shall contain the following minimum terms:
After an alleged first License Violation at a location within any sixty -
month (60) period:
a. An agreement to stop acting as a Tobacco Retailer for at
least one (1) day;
b. A settlement payment to the County of at least one thousand
dollars ($1000); and
c. An admission that the violation occurred and a stipulation
that the violation will be counted when considering what
penalty will be assessed for any future violations.
ii. After an alleged second License Violation at a location within any
sixty -month (60) period:
a. an agreement to stop acting as a Tobacco Retailer for at
least ten (10) days;
b. a settlement payment to the County of at least five thousand
dollars ($5000); and
c. an admission that the violation occurred and a stipulation
that the violation will be counted when considering what
penalty will be assessed for any future violations.
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 7(a) 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.
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(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.
Section 11. 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 County Counsel, 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 ($1500) 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
County Counsel, 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 County Counsel, including, but not limited to, administrative or
judicial nuisance abatement proceedings, civil or criminal code
enforcement proceedings, and suits for injunctive relief.
Section 12. SEVERABILITY. If any section, subsection, subdivision,
paragraph, sentence, clause or phrase of this Ordinance, or its application to any
person or circumstance, is for any reason held to be invalid or unenforceable,
such invalidity or unenforceability shall not affect the validity or enforceability of
the remaining sections, subsections, subdivisions, paragraphs, sentences,
clauses or phrases of this Ordinance, or its application to any other person or
circumstance. The City Council of the City of Beaumont hereby declares that it
would have adopted each section, subsection, subdivision, paragraph, sentence,
clause or phrase hereof, irrespective of the fact that any one or more other
sections, subsections, subdivisions, paragraphs, sentences, clauses or phrases
hereof be declared invalid or unenforceable.
MOVED AND PASSED upon first reading this 5th day of December 2006, by the
following roll call vote:
AYES: Mayor Pro Tem DeForge, Council Members Dressel, Berg, and Killough
NOES: None
ABSTAIN: None
ABSENT: Mayor Fox
MOVED, PASSED AND ADOPTED this 19th day of December, 2006,
upon second reading by the following roll call vote:
AYES: Mayor Fox, Council Members DeForge, Berg, and Killough
NOES: None
ABSTAIN: None
ABSENT: Council Member Dressel
ATTEST:
CITY OF BEAUMONT
By
City of Beaumont
550 E. 6th Street
Beaumont, CA 92223
(951) 769-8520
FAX (951) 769-8526
Email: cityhall@ci.beaumont.ca.us
www.ci.beaumont.ca.us
Legal Advertisement
NOTICE IS HEREBY GIVEN, that the Beaumont City Council conducted a public
hearing on Tuesday, December 5, 2006 at approximately 6:00 p.m. in the room 5 at the
Beaumont Civic Center, 550 E. 6th Street, Beaumont, California 92223, to receive
testimony and comments from all interested persons regarding the adoption of the
following matter(s):
Ordinance No. 906 - An Ordinance of the City Council of the City of Beaumont
Requiring the Licensing of Tobacco Retailers within City of Beaumont
It is the purpose and intent of this Ordinance to promote 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
the sales of cigarettes and tobacco products to minors; and finally, and most
importantly, I protecting children from being lured into illegal activity through the
misconduct of adults. 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 and 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 therefore.
The above referenced Ordinance was adopted at the Regular City Council Meeting of
December 19, 2006 at its second reading.
Date: • December 22, 2006
Shelby Hanvey "
Deputy City CI:1 '
Published: Record Gazette one time only on December 29, 2006.
IN THE STATE OF CALIFORNIA
IN AND FOR THE COUNTY OF RIVERSIDE
NO. 592
Notice is Hereby Given Beaumont City Council
Ordinance No. 906
STATE OF CALIFORNIA
County of Riverside } SS
I am a citizen of the United States and a
resident of the County aforesaid; I am
over the age of eighteen years, and not a
party to or interested in the above entitled
matter. I am the principal clerk of the
printer of
The Weekly Record Gazette
a newspaper of general circulation, printed
and published weekly in the City of Ban-
ning, County of Riverside and which
newspaper has been adjudged a newspa-
per of general circulation by the Superior
Court of the County of Riverside, State of
California, under date of
October 14, 1966. Case Number 54737,
that the notice, of which the annexed is a
printed copy, has been published in each
regular and entire issue of said newspaper
and not in any supplement thereof on the
12/01
all in the year 2006
I certify (or declare) under penalty of per-
jury thj the foregoing is true and correct.
41.
signature
Date 12/01/06
at Riverside, California.
This space for County Clerk's Filing Stamp
IN THE STATE OF CALIFORNIA
IN AND FOR THE COUNTY OF RIVERSIDE
NO. 650
Notice of Public Hearing - Beaumont City
Council — Ordinance No. 906
STATE OF CALIFORNIA
County of Riverside } SS
I am a citizen of the United States and a
resident of the County aforesaid; I am
over the age of eighteen years, and not a
party to or interested in the above entitled
matter. I am the principal clerk of the
printer of
The Weekly Record Gazette
a newspaper of general circulation, printed
and published weekly in the City of Ban-
ning, County of Riverside and which
newspaper has been adjudged a newspa-
per of general circulation by the Superior
Court of the County of Riverside, State of
California, under date of
October 14, 1966. Case Number 54737,
that the notice, of which the annexed is a
printed copy, has been published in each
regular and entire issue of said newspaper
and not in any supplement thereof on the
12/29
all in the year 2006
I certify (or declare) under penalty of per-
jury t 7t the foregoing is true and correct.
signature
Date 12/29/06
at Riverside, California.
This space for County Clerk's Filing Stamp