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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 2 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. 3 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 4 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