HomeMy WebLinkAboutAgenda - Agenda Packets - Regular Meeting 9/2/1999 AGENDA
REGULAR MEETING
SAN JACINTO CITY COUNCIL
AND THE CITY COUNCIL SITTING AS
THE REDEVELOPMENT AGENCY AND
INDUSTRIAL DEVELOPMENT AUTHORITY
DATE: September 2, 1999
TIME: 6:00 P.M.
PLACE: Community Center
625 South Pico Street
San Jacinto, California
1.01 CALL TO ORDER
Roll Call
Invocation by Chaplain Cooper of the San Jacinto Police Department
Pledge of Allegiance
2.0 SPECIAL PRESENTATIONS:
3.0 PUBLIC COMMENTS:
Any person may address the Council on any subject pertaining to City business not listed on the agenda
during this portion of the meeting. A limitation of three (3) minutes shall be set for each person desiring to
address the Council.
Convene the Redevelopment Agency for the following business:
4.0 REDEVELOPMENT AGENCY/FINANCING AUTHORITY
The matters listed under consent calendar(Item 4.1) is considered routine and will be enacted by one
motion by Agency Members in the form listed.
There will be no separate discussion on this item prior to the motion unless a member of the agency, staff
or the public requests the item to be removed and/or discussed.
Anyone wishing to discuss the consent calendar item should come forward upon invitation of the President,
state their name, address and consent calendar item number. Speakers should limit comments to three (3)
minutes.
CONSENT CALENDAR:
4.1 Minutes- Regular Meeting -August 5, 1999
RECOMMENDATION: Approve the minutes of the regular meeting of August 5, 1999, as
presented.
DISCUSSION ITEMS:
4.2 Property Acquisition - North of Mountain School
Location: Approximately 4.92 acres of residential land south side of Seventh Street,
east and adjacent to school.
RECOMMENDATION: Approve the documents for acquisition.
4.3 Property Management Agreement (Leasing Obligations) -Virginia Lee Hotel
RECOMMENDATION: Approve or do not approve the agreement and provide staff
direction on leasing issues.
5.0 CONSENT CALENDAR -CITY COUNCIL
All matters listed under consent calendar(5.1 through 5.6) are considered routine and will be enacted by
one motion by the City Council Members in the form listed.
There will be no separate discussion on these items prior to the motion unless members of the City
Council, staff or the public requests specified items to be removed and/or discussed.
Anyone wishing to discuss a consent calendar item should come forward upon invitation of the Mayor,
state their name, address and the consent calendar item number. Speakers should limit comments to
three (3) minutes.
5.1 Minutes- Regular Meeting -August 5, 1999
RECOMMENDATION: Approve the minutes of the regular meeting of August 5, 1999, as
presented.
• 5.2 Claim - Charles Hinshaw, et al - File#JS 99-18
RECOMMENDATION: Reject the claims as recommended by the Claims Administrator
pursuant to Government Code Section 913.
5.3 General Plan Amendment Request for Proposals
RECOMMENDATION: Authorize staff to solicit proposals for the comprehensive update.
5.4 Bond Release-Tract 23789 (Terra Nova)
RECOMMENDATION: Release bonds as outlined in the staff report for Streets, Sewer
and Water improvements.
5.5 CDBG - Reprogramming of Funds
RECOMMENDATION: Reprogram $100,000 to Idyllwild Drive from Flood Control and
Bridge enhancement, reprogram $68,182 to Estudillo Mansion Restoration from
Community Center Renovation
5.6 Warrant Register
RECOMMENDATION: Approve warrants 51951 through 52070, dated August 31, 1999,
and payroll checks 12042 through 12070, dated August 31, 1999.
6.0 PUBLIC HEARING:
7.0 CITY DEPARTMENTS
7.1 Pipeline License Agreement- Seventh Street Waterline (Riverside County)
RECOMMENDATION: Approve or request modifications by RCTC as recommended by
the City Attorney.
7.2 Water Utilities Supervisor Job Description
RECOMMENDATION: Approve or do not approve the job description.
7.3 CFD#2 - Contracts for Services
7.3.1 Underwriter for Workout
RECOMMENDATION: Retain Seidler-Fitzgerald Public Finance for Underwriter
for bonds issued.
7.3.2 Market Feasibility and Absorption Study
RECOMMENDATION: Appoint Market Profiles for the work.
7.3.3 Appraisal Services
RECOMMENDATION: Appoint Gary L. Vogt and Associates to appraise vacant
land.
8.0 MAYOR/COUNCIL MEMBER REPORTS/DISCUSSIONS
8.1 Set Time for Special Meeting September 7, 1999
RECOMMENDATION: Select the time for the special meeting for certification of election
results, swearing in and selection of MayorNice Mayor.
9.0 CLOSED SESSION
Unfinished business from earlier meeting.
10.0 ADJOURNMENT:
I, Pamela L. Lee, City Clerk of the City of San Jacinto, do hereby certify that I caused to be posted the
foregoing agenda this 30th day of August, 1999, as required by law.
tom.
AGENDA ITEM 6.-•
STAFF REPORT
TO: Honorable
Mayor and Members of the City Council
FROM: Tim Hultd,�Planning Director
DATE: September 2, 1999
SUBJECT: RELEASE OF BOND - TRACT 23789
(Terra Nova Residential L.L.C.)
RECOMMENDATION
1 . Authorize a 90 percent bond reduction for street improvements, sewer and water
improvements, and a full 100 percent release of the monumentation bond. The
breakdown of bond reduction/release is as follows:
Bond # Bond Amount Reduction Retention
A. Bond # 194071S (Streets) $231 ,336.00 $208,202.40 $23,133.60
B. Bond # 194073S (Sewer) $ 32,961 .00 $ 29,664.90 $ 3,296.10
C. Bond # 194072S (Water) $ 32,846.00 $ 29,561.40 $ 3,284.60
Bond # Bond Amount Release
Al. Bond # 194071S (Monument) $ 12,000.00 $ 12,000.00
2. Authorize the City Clerk to notify:
Steven R. Bonilla
THE INSCO DICO GROUP
17780 Fitch
Irvine, CA 92714
BACKGROUND
The City of San Jacinto has received a request from the Terra Nova Residential L.L.C., to
release the bonds securing the subdivision improvements for the Sandal Creek project in
Rancho San Jacinto. The City Engineer and Planning Department are in concurrence with
the bond reduction/release. The required improvements have been installed in accordance
with the Conditions of Approval for the subject subdivision.
After acceptance by the City, the developer is responsible for th
e maintenance and
warranty of the improvements for a one-year period. The 10 percent retention is adequate
to cover any maintenance of the improvements until the developer's warranty period has
expired. The monumentation bond can be released in full as the monuments have been
set by the project engineer in accordance with the Final Map.
Attachments: Subdivision Improvement Bonds
AGENDA ITEM C• 3
STAFF REPORT
TO: Ho
norable Mayor and CityCouncil Members
Y
FROM: Brian McNabb, Director of Community Development
via Dennis R. Halloway, City Manager
DATE: October 1, 1996
SUBJECT: EXTENSION OF THE SUBDIVISION AGREEMENT FOR TRACT 23789
TERRA NOVA RESIDENTIAL L.L.C. (EVANS STREET - RANCHO SAN
JACINTO)
RECOMMENDATION
Staff recommends that the City Council extend the Subdivision Agreement for Tract
23789 for a period of two years, to expire September 1, 1998.
DISCUSSION
The replacement Subdivision Agreement for the subject Tract was executed and became
effective on September 1, 1995, when Terra Nova purchased the property. Due to slow
development activity in the City, at this time, the property owner is requesting that the
Agreement be extended.
The bonds are still in full force and effect. Although Terra Nova is building homes
currently, the absorption rate dictates that it will be approximately two years before all the
public improvements have been completed. Additionally, staff does not anticipate a need
to call the bonds for this tract within the next two years.
H:\CCRPT-96\23789EXT.AGM
Approved Other
Denied _Conked
DIle
TabledAmended
Intonational
Withdrawn
300 •00a-
STAFF REPORT
TO: Honorable Mayor and City Council Members
FROM: Brian McNabb, Director of Community Development
via Pamela S. Easter, City Manager
DATE: August 15, 1995
SUBJECT: REPLACEMENT OF THE SUBDIVISION AGREEMENT FOR TRACT
23789 - SOUTHWEST CORNER OF EVANS STREET AND LAS ROSAS
Applicant: Linway Development
3133 Goldsmith
San Diego, CA 92106
NEIGHBORHOOD
Rose Ranch
RECOMMENDATION
Upon the close of escrow between Gentra Capital (seller) and Linway Development
(buyer) regarding the above referenced development, Staff recommends that the City
Council:
1. Authorize Staff to prepare a replacement Subdivision Agreement for Tract 23789,
for execution by the potential property owners and the City
2. Accept replacement bonds in the amount of $297,143, as follows:
Performance/Labor and Materials of Street Improvements - $232,336
Monuments - $12,000
Water - $32,846
Sewer - $32,961
3. Release existing bonds in the amount of $479,843, as follows:
Performance/Labor and Materials of Street Improvements - $232,336
Monuments - $12,000
Water - $32,846
Sewer - $32,961
Grading - $182,700
City Council Staff Report
August 15, 1995
Page No. 2
DISCUSSION
The subject site, a 113-lot recorded subdivision, is in escrow. The City is party to an
executed (but expired) Subdivision Agreement with the seller for the infrastructure
improvements related to the development of the site. Additionally, bonds in favor of the
City in the amount of the needed improvements were posted initially by the original
developer and are still in full force and effect. As a condition of escrow, the seller is
requiring that their obligation for the bonds be removed.
The developer that is in escrow for the purchase of the land is agreeable to replacing the
existing bonds and executing a replacement Subdivision Agreement. However, the buyer
is reluctant assume the obligation for the improvements until such time as escrow closes.
Therefore, the buyer is requesting that the City Council allow for the execution of the
Subdivision Agreement and the posting of replacement bonds at the close of escrow. At
that time, the existing bonds would be released and the obligation of the bank to
guarantee the improvements would be removed.
In the event that escrow does not close, this action would be nullified and the existing
bonds and improvement obligations would remain in effect. However, Staff would
recommend that Gentra Capital be required to extend the Subdivision Agreement.
C C R PT-95\23789AG M.A M D
PreTrnmiiiimi
iiite00#7,11111,44
S A N
JACINTO
August 24, 1995
Mr. Michael Tryon
Gentra Capital Corporal:ion
15111 Whittier Boulevard, Suite 360
Whittier, CA 90603
Subject: Tract 23789, Rolease of Bonds
Dear Mr. Tryon:
On August 15, 1995, the City Council authorized full release of all bonds, in the amount
of $479,843, related to the above referenced development. The Council action was
predicated upon replacement bonds, in the amount of $297,143, and a new Subdivision
Agreement being deposited into an escrow account or submitted directly to the City.
Upon confirmation by an authorized escrow agent or upon receipt of the replacement
bonds and Subdivision Agreement, the City will release Gentra from the above bond
obligation.
Sincerely,
(7,(.)
rie Mora
Deputy City Clerk
LL\GNTRABND.REL
City of San Jacinto • 201 East Main Street • San Jacinto,California 92583
STAFF REPORT
TO: Honorable Mayor and City Council Members
FROM: Brian McNabb, of Community Development
via Pamela S. Easter, City Manager
DATE: August 15, 1995
SUBJECT: REPLACEMENT OF THE SUBDIVISION AGREEMENT FOR TiliAars
23789 - SOUTHWEST CORNER OF EVANS STREET AND LAS ROSAS
Applicant: Linway Development
3133 Goldsmith
San Diego, CA 92106
NEIGHBORHOOD
Rose Ranch
RECOMMENDATION
Upon the close of escrow between Gentra Capital (seller) and Linway Development
(buyer) regarding the above referenced development, Staff recommends that the City
Council:
1. Authorize Staff to prepare a replacement Subdivision Agreement for Tract 23789,
for execution by the potential property owners and the City
2. Accept replacement bonds in the amount of $297,143, as follows:
Performance/Labor and Materials of Street Improvements - $232,336
Monuments - $12,000
Water - $32,846
Sewer - $32,961
3. Release existing bonds in the amount of $479,843, as follows:
Performance/Labor and Materials of Street Improvements - $232,336
Monuments - $12,000
Water - $32,846
Sewer - $32,961
Grading - $182,700
City Council Staff Report
August 15, 1995
Page No. 2
DISCUSSION
The subject site, a 113-lot recorded subdivision, is in escrow. The City is party to an
executed (but expired) Subdivision Agreement with the seller for the infrastructure
improvements related to the development of the site. Additionally, bonds in favor of the
City in the amount of the needed improvements were posted initially by the original
developer and are still in full force and effect. As a condition of escrow, the seller is
requiring that their obligation for the bonds be removed.
The developer that is in escrow for the purchase of the land is agreeable to replacing the
existing bonds and executing a replacement Subdivision Agreement. However, the buyer
is reluctant assume the obligation for the improvements until such time as escrow closes.
Therefore, the buyer is requesting that the City Council allow for the execution of the
Subdivision Agreement and the posting of replacement bonds at the close of escrow. At
that time, the existing bonds would be released and the obligation of the bank to
guarantee the improvements would be removed.
froftilY
In the event that escrow does not close, this action would be nullified and the existing
bonds and improvement obligations would remain in effect. However, Staff would
recommend that Gentra Capital be required to extend the Subdivision Agreement.
CCR PT-95\23789AG M.AM D
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SUBDIVISION AGREEMENT
THIS AGREEMENT made and entered into this , day
of f 061)5,T , 1995, by and between TERRA NOVA RESIDENTIAL
L.L.C. , A ;CLGRADO LIMITED LIABILITY COMPANY, the parties of the
first part, hereinafter designated and called "contractor" and the
CITY COUNCIL OF THE CITY OF SAN JACINTO, a Municipal Corporation of
the County of Riverside, State of California, acting by and through
"Mayor" and "Deputy City Clark" , thersunto authorized so to ac ,
the party of the second part, hereinafter designated and called
"Council" .
WITNESSETH
THAT, WHEREAS, said contractor has presented to the City Council ,f
the City of San Jacinto, to wit: Tract 23789 , a copy of which said
proposed map is attached to this agreement and is hereby referred
to and made a part of this agreement for any and all particular ,
and has requested the said City Council to accept the dedication of
the street cr_ streets delineated and shown on said map as and for
a public street or highway, or streets and highways , and to
otherwise approve said map to the end that said map may be recorded
as required .by law; and
WHEREAS, the City Council of the City of :San Jacinto requires as a
condition precedent to the acceptance and approval of said map the
dedication of such streets, highways and public ways as delineated
and shown on said map and deems the same as necessary for the
public use; that any street or streets delineated and shown on sand
map may be improved by the construction thereon and installation
therein of grading, paving, curbs, gutters, sidewalks, storm
drains, sanitary sewers, street name signs, survey monuments, and
water pipes and mains, together with fire hydrants.
AND, WHEREAS, the improvement of said_street or streets, highway cjr
highways, as shown and delineated on said map' as by the Ciy
Council of the City of San Jacinto required and deemed as necessary
for the public use has not been done or completed and said
contractor shall as provided by Ordinance No. 673 of the City of
San Jacinto, and by an Act of the Legislature of the State Of
California, entitled, "An Act relating to the real estae
'subdivisions and the making and recording of maps; and granting
limited powers to cities and towns, and counties, in connecticin
therewith, making certain acts misdemeanors, prescribing penalties
therefore, and repealing acts or portions of acts in conflict
herewith" , enter into this Agreement with the City, whereby in
consideration of the acceptance of the offers of dedication by the
City Council of the City of San Jacinto, the Contractor agrees to
complete the work hereinafter in this agreement mentioned and set
forth in detail to be done by contractor within the tine
hereinafter mentioned.
Page 1
NOW, TlILREFO?.Z, in consideration of the •premises and of the
acceptance of the offers of dedication of street and streets shorn
and dalineated on said map and the approval of said map for filing
and recording as provided and required by law, it is mutually
agreed and understood by and between Contractor and Council do
hereby mutually agree as follows:
1 . That the City Council of the City of San Jacinto has
fi, e fix tine within which contractor is to do
�y.�_,� and does hereby the ti.:,_
and perform the work and improvements hereinafter stated and
specified as being the period of time to expire between the date of
this agreement and the 1st day of saptamber, 1996, and that
contractor will, at his own cost and expense, including all costs
of inspection or inspections done by the City of San Jacinto within
the period of tine hereinabove in Paragraph 1 of this agreement
stated and fixed, do or cause to be done and performed tI�e
following described work and/cr improvements to wit: All offsi e
improvements as shown on Approved improvement Plans for
Tract 23789 .
It is expressly agreed and understood by contractor that
City shall inspect all said work to be done by an inspector
employed by the City at the' cost and expense of contractor and that
contractor will pay unto City cn demand the actual cost of such
inspection.
2 . All of the said work and improvements and the materials
therefore shall be done, performed and installed in strict
accordance with plans and specifications therefore on file which
are hereby adopted and made a part of this agreement.
3 . Contractor shall, at the time of the execution of this
agreement present to and file with the City of San Jacinto a bond
in the sum of THREE HUNDRED NINE THOUSAND ONE HUNDRED FIFTY THREE
DOLLARS AND NO ONE HUNDREDTHS ($309, 153 .00) which sum it is herer"1fy
agreed is the sum fixed by the City of San Jacinto for that
purpose, in accordance with the provisions of Section 11612 of t1ie
Business and Professional Code and Section 66499 et.seq. of the
Government Code, conditioned upon the faithful performance Oy
contractor of this agreement and by its terms made to inure the
benefit of the City of San Jacinto and contractor shall also at the
tine present to and file with the City of San Jacinto, a good and
sufficient bond in the sum of THREE HUNDRED NINE THOUSAND ONE
HUNDRED FIFTY THREE DOLLARS AND NO ONE HUNDREDTHS ($309,153. 0 )
and by its terms made to inure to the benefit of laborer and
material suppliers upon such work and improvements conditioned upon
the payment of such laborer and. material suppliers for labor a d
material performed or rendered under the terms of said contrac•,
and for amounts due under the Unemployment Insurance Act with
respect to such work or labor as provided by State Law.
Page 2
4 . Contractor shall before commencing any work as hereirn
provided for, take out and at all times maintain during the course
of such work, workmen' s compensation insurance required by the lads
of the State of California, and failing to do so, City may procure
such insurance for said contractor and contractor shall pay City
such monies as the City may be compelled to pay therefore.
5 . Contractor shall save the City Council, City of San
Jacinto, and the officers and employees of said City of San
Jacinto, harmless against injuries to persons and damage to
property, which may occur by reason or in connection with any work •
done as provided and contemplated by this agreement and contractir
shall procure and carry at all times during the course of said
work, liability insurance therefore in the amount of one milliin
dollars ($1, 000, 000) in favor of contractor and City Council, City
of San Jacinto, and the officers and employees of the City of San
Jacinto as long as any work is being done as provided by this
agreement.
Notices concerning this agreement shall be sent to the followin ' :
City Clark
City of San Jacinto
312 E. Main Street
San Jacinto, CA 92583 , and •
Terra Nova Residential L.L.C.
C/O Wayne Bienhoff
3133 Goldsmith
San Diego, CA 91719
IN WITNESS WHEREOF, contractor, as parties of the first part, have
hereunto set their hands and the City Council has caused these
presents to be executed in the name of the City Council of the City •
of San Jacinto, by its officers thereunto duly authorized on tle
day and year in this agreement f first above written.
TERRA NOVA RESIDENTIAL, L.L. C.
A COLORADO LIMITED LIABILI*
COMPANY, GENERAL PARTNER
S(Z9(BY
/ 11 /,
GF Liyw y 84Q
By
Page 3
• • ' • ' CITY COUNCIL OF THE
CIT OF SAN JACI* TO
g
DA SOLORIO, Mayor r-
•
ATTEST:
By� «.._
D putt' City Clerk
' I
Page 4 .
1 1
IrS� BOND NO: 194071S
�'�O INITIAL PREMIUM: $5,840.00
SUBJECT TO RENEWAL.
SUBDIVISION IMPROVEMENTS/MONUMENT
PERFORMANCE BOND
KNOW ALL MEN BY THESE PRESENTS:
That we, TERRA NOVA RESIDENTIAL L. L. C. ,as Principal,
and DEVELOPERS INSURANCE COMPANY,a corporation organized and doing business under and by virtue of the laws of the State
of California and duly licensed to conduct a general surety business in the State of California as Surety,are held and firmly bound unto
CITY OF SAN JACINTO
as Obligee, in the sum of TWO HUNDRED FORTY THREE THREE HUNDRED THIRTY SIX
($ 243,336.00 ) Dollars, for which payment, well and truly to be made, we bind ourselves, our heirs, executors and
successors,jointly and severally firmly by these presents.
THE CONDITION OF THE OBLIGATION IS SUCH THAT:
WHEREAS, the above named Principal,as a condition of the filing of the final subdivision map of(Tract/Parcel) Map No. 23789
entered into an agreement or agreements with said Obligee to complete the improvements specified in
said agreement or agreements.
NOW THEREFORE, the condition of this obligation is such, that if the above Principal shall well and truly perform said agreement or
agreements during the original term thereof or of any extension of said term that may be granted by the Obligee with or without notice
to the Surety, this obligation shall be void, otherwise it shall remain in full force and effect.
IN WITNESS WHEREOF, the seal and signature of said Principal is hereto affixed and the corporate seal and the name of the said
Surety is hereto affixed and attested by its duly authorized Attorney-in-Fact at SAN DIEGO
California,this
28TH dayof AUGUST , 19 95
"PRINCIPAL" "SURETY"
TERRA NOVA RESIDENTIAL L. L. C. DEVELOPERS INSURANCE COMPANY
BY: 4.414-
STEVEN R. BONILLA Attorney-in-Fact
17780 Fitch
Irvine, California 92714
(714) 263-3300
DI 113 Rev.2/91
STATE OF CALIFORNIA
SS.
COUNTY OF SAN DIEGO
On i.� , before me, D. KOHL
PERSONALLY APPEARED STEVEN R. BONILLA
personally known to me (or proved to me on the basis of
satisfactory evidence) to be the person(s) whose name(s)
is/are subscribed to the within instrument and acknowl-
edged to me that he/she/they executed the same in his/
her/their authorized capacity(ies), and that by his/her/ i
D. KOHL
their signature(s) on the instrument the person(s), or the COMM.#1052182 0
NOTARY PUBLIC•CALIFORNIA U))entity upon behalf of which the person(s) acted, executed gAN DtEGQCOUNTY
the instrument. � �� my Commission Expires
FEBRUARY 27,1999 •
WITNESS my hand and official seal.
Signature 0/6\--Z, This area for Official Notarial Sea!
OPTIONAL
Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent
fraudulent reattachment of this form.
CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT
❑ INDIVIDUAL
❑ CORPORATE OFFICER
TITLE(S) TITLE OR TYPE OF DOCUMENT
❑ PARTNER(S) ❑ LIMITED
GENERAL
n ATTORNEY-IN-FACT NUMBER OF PAGES
n TRUSTEE(S)
❑ GUARDIAN/CONSERVATOR
❑ OTHER:
DATE OF DOCUMENT
SIGNER IS REPRESENTING:
NAME OF PERSON(S)OR ENTITY(IES)
SIGNER(S) OTHER THAN NAMED ABOVE
ID-OS1 Rev.6/9.' ALL-PURPOSE ACKNOWLEDGEMENT
• • POWER OF ATTORNEY OF
•• INDEMNITY COMPANY OF CALIFORNIA
4 • AND DEVELOPERS INSURANCE COMPANY N2 2 3 4 918
P.O. BOX 19725,IRVINE,CA 92713 • (714)263-3300
NOTICE: 1. All power and authority herein granted shall in any event terminate on the 31st day of March,1996.
2. This Power of Attorney is void if altered or if any portion is erased.
3. This Power of Attorney is void unless the seal is readable,the text is in brown ink,the signatures are in blue ink and this notice is in red ink.
4. This Power of Attorney should not be returned to the Attorney(s)-In-Fact,but should remain a permanent part of the obligee's records.
KNOW ALL MEN BY THESE PRESENTS,that,except as expressly limited, INDEMNITY COMPANY OF CALIFORNIA and DEVELOPERS INSURANCE COMPANY,do each
severally,but not jointly,hereby make,constitute and appoint
***STEVEN R. BONILLA, JO ANN PARKER, D. KOHL, JOINTLY OR SEVERALLY***
the true and lawful Attorney(s)-In-Fact,to make,execute,deliver and acknowledge,for and on behalf of each of said corporations as sureties,bonds,undertakings and contracts of
suretyship in an amount not exceeding Two Million Five Hundred Thousand Dollars($2,500,000)in any single undertaking;giving and granting unto said Attorney(s)-In-Fact full
power and authority to do and to perform every act necessary,requisite or proper to be done in connection therewith as each of said corporations could do,but reserving to each of
said corporations full power of substitution and revocation;and all of the acts of said Attorney(s)-In-Fact,pursuant to these presents,are hereby ratified and confirmed.
The authority and powers conferred by this Power of Attorney do not extend to any of the following bonds,undertakings or contracts of suretyship:
Bank depository bonds,mortgage deficiency bonds,mortgage guarantee bonds,guarantees of installment paper,note guarantee bonds,bonds on financial institutions,lease
bonds,insurance company qualifying bonds,self-insurer's bonds,fidelity bonds or bail bonds.
This Power of Attorney is granted and is signed by facsimile under and by authority of the following resolutions adopted by the respective Boards of Directors of INDEMNITY
COMPANY OF CALIFORNIA and DEVELOPERS INSURANCE COMPANY,effective as of September 24,1986:
RESOLVED,that the Chairman of the Board,the President and any Vice President of the corporation be,and that each of them hereby is,authorized to execute Powers of Attorney,
qualifying the attorney(s)named in the Powers of Attorney to execute,on behalf of the corporation,bonds,undertakings and contracts of suretyship;and that the Secretary or any Assis-
tant Secretary of the corporation be,and each of them hereby is,authorized to attest the execution of any such Power of Attorney;
RESOLVED,FURTHER,that the signatures of such officers may be affixed to any such Power of Attorney or to any certificate relating thereto by facsimile,and any such Power of
Attorney or certificate bearing such facsimile signatures shall be valid and binding upon the corporation when so affixed and in the future with respect to any bond,undertaking or
contract of suretyship to which it is attached.
IN WITNESS WHEREOF,INDEMNITY COMPANY OF CALIFORNIA and DEVELOPERS INSURANCE COMPANY have severally caused these presents to be signed by their respec-
tive Presidents and attested by their respective Secretaries this 1st day of April,1993.
INDEMNITY COMPANY OF CALIFORNIA DEVELOPERS INSURANCE COMPANY
02AlJ11 ByBy
Dant;F.Vincenti,Jr. Dant.IF.Vincenti,Jr.
'president resident• �QSopFOq�;lc
t o 7 o e° c
OCT.S. C -, MAR.27, 0
ATTEST 1967 o ATTEST i 1878 ;
0
.1.�r/F00.M\�‘4. pn7<1F00.N\?
By /4IJIJJL'J( By Aid/0'rd
Walter Crowell Walter Crowell
Secretary Secretary
STATE OF CALIFORNIA)
SS.
COUNTY OF ORANGE )
On July 15, 1994,before me,the undersigned, a Notary Public in and for said State, personally appeared Dante F. Vincenti,Jr.and Walter A. Crowell,per-
sonally known to me (or proved to me on the basis of satisfactory evidence)to be the persons who executed the within instrument as President and Secretary on
behalf of Indemnity Company of California and as President and Secretary of Developers Insurance Company,the Corporations therein named,and acknowledged
to me that the corporations executed it.
WITNESS my hand and official seal. OFFICIAL SEAL
J. ALVARADO
I` , iliCh., COMM.#1023169
n NOTARY PUBLIC-CALIFORNIA
Signature � ORANGE COUNTY
Notary Public 4My Commission Exp.Apr.17,1998
CERTIFICATE
The undersigned,as Senior Vice President of INDEMNITY COMPANY OF CALIFORNIA,and Senior Vice President of DEVELOPERS INSURANCE COMPANY,does hereby
certify that the foregoing and attached Power of Attorney remains in full force and has not been revoked;and furthermore,that the provisions of the resolutions of the respective
Boards of Directors of said corporations set forth in the Power of Attorney,are in force as of the date of this Certificate.
This Certificate is executed in the City of Irvine,California,this 28TH day of AUGUST 199 5
INDEMNITY COMPANY OF CALIFORNIA MPAMy DEVELOPERS INSURANCE COMPANY Nsu
�C,0,20R,7 f 0 � �,0- OR4�0
r !� o c"
J / i OCT.S, ow.21. o
By ` �`� d 196] o BY ` i 1979 i
L.C.Fiebiger o, N�? L.C.Fiebiger o cif �V
Senior Vice President 1i 1/,05* .,k Senior Vice President 4/F00 r•'
ID-310 REV.1/95
BOND NO: 194073S
Ir1SCCI�ICO
INITIAL PREMIUM: $791.00
D
SUBJECT TO RENEWAL.
SUBDIVISION IMPROVEMENTS
PERFORMANCE BOND
SEWER
KNOW ALL MEN BY THESE PRESENTS:
That we, TERRA NOVA RESIDENTIAL L. L. C. , as Principal,
and DEVELOPERS INSURANCE COMPANY,a corporation organized and doing business under and by virtue of the laws of the State
of California and duly licensed to conduct a general surety business in the State of California as Surety,are held and firmly bound unto
CITY OF SAN JACINTO
as Obligee, in the sum of THIRTY TWO THOUSAND NINE HUNDRED SIXTY ONE
(g 32,961.00 ) Dollars, for which payment, well and truly to be made, we bind ourselves, our heirs, executors and
successors,jointly and severally firmly by these presents.
THE CONDITION OF THE OBLIGATION IS SUCH THAT:
WHEREAS,the above named Principal, as a condition of the filing of the final subdivision map of(Tract/Parcel) Map No. 23789 ,
entered into an agreement or agreements with said Obligee to complete the improvements specified in
said agreement or agreements.
NOW THEREFORE, the condition of this obligation is such, that if the above Principal shall well and truly perform said agreement or
agreements during the original term thereof or of any extension of said term that may be granted by the Obligee with or without notice
to the Surety,this obligation shall be void, otherwise it shall remain in full force and effect.
IN WITNESS WHEREOF, the seal and signature of said Principal is hereto affixed and the corporate seal and the name of the said
Surety is hereto affixed and attested by its duly authorized Attorney-in-Fact at SAN DIEGO
California,this 28TH day of AUGUST , 19 95
"PRINCIPAL" "SURETY"
TERRA NOVA RESIDENTIAL L. L. C. DEVELOPERS INSURANCE COMPANY
BY: gY
STEVEN R. BONILLA Attorney-in-Fact
17780 Fitch
Irvine,California 92714
(714) 263-3300
DI 113 Rev.2/91
•
•
S'fATE OF CALIFORNIA
SS.
COUNTY OF SAN DIEGO
On � � � , before me, D. KOHL
PERSONALLY APPEARED STEVEN R. BONILLA
personally known to me (or proved to me on the basis of
satisfactory evidence) to be the person(s) whose name(s)
is/are subscribed to the within instrument and acknowl-
edged to me that he/she/they executed the same in his/
her/their authorized capacity(ies), and that by his/her/
their signature(s) on the instrument the person(s), or the • D. KOHL
entity upon behalf of which the person(s) acted, executed r COMM. #10�2.OR
U f°� �; � NOTP,RY PUBLiC-CPIIPORNIA
the instrument. i- " ,�- SAN DIEGU COUNTY
U � `r• My Commission Expires
FEERUARY 27,1999
WITNESS my hand and official seal.
Signature • This area for Official Notarial Seal
OPTIONAL
Though the data below is not required by law, it mayprove valuable to personsrelying
on the document and could prevent
fraudulent reattachment of this form.
CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT
❑ INDIVIDUAL
LJ CORPORATE OFFICER
nTLE(s) TITLE OR TYPE OF DOCUMENT
❑ PARTNER(S) C LIMITED
n GENERAL
❑ ATTORNEY-IN-FACT NUMBER OF PAGES
❑ TRUSTEE(S)
❑ GUARDIAN/CONSERVATOR
n OTHER:
DATE OF DOCUMENT
SIGNER IS REPRESENTING:
NAME OF PERSON(S)OR ENTITY(IES)
SIGNER(S) OTHER THAN NAMED ABOVE
ro-osi Rev.6/9-( ALL-PURPOSE ACKNOWLEDGEMENT
POWER OF
ATTORNEY OF
INDEMNITY COMPANY OF CALIFORNIA
AND DEVELOPERS INSURANCE COMPANY N° 2 3 5 0 5 6
• P.O. BOX 19725, IRVINE,CA 92713 • (714)263-3300
NOTICE: 1. All power and authority herein granted shall in any event terminate on the 31st day of March,1996.
2. This Power of Attorney is void if altered or if any portion is erased.
3. This Power of Attorney is void unless the seal is readable,the text is in brown ink,the signatures are in blue ink and this notice is in red ink.
4. This Power of Attorney should not be returned to the Attorney(s)-In-Fact,but should remain a permanent part of the obligee's records.
KNOW ALL MEN BY THESE PRESENTS,that,except as expressly limited, INDEMNITY COMPANY OF CALIFORNIA and DEVELOPERS INSURANCE COMPANY,do each
severally,but not jointly,hereby make,constitute and appoint
***STEVEN R. BONILLA, JO ANN PARKER, D. KOHL, JOINTLY OR SEVERALLY***
the true and lawful Attorney(s)-In-Fact,to make,execute,deliver and acknowledge,for and on behalf of each of said corporations as sureties,bonds,undertakings and contracts of
suretyship in an amount not exceeding Two Million Five Hundred Thousand Dollars($2,500,000)in any single undertaking;giving and granting unto said Attorney(s)-In-Fact full
power and authority to do and to perform every act necessary,requisite or proper to be done in connection therewith as each of said corporations could do,but reserving to each of
said corporations full power of substitution and revocation;and all of the acts of said Attorney(s)-In-Fact,pursuant to these presents,are hereby ratified and confirmed.
The authority and powers conferred by this Power of Attorney do not extend to any of the following bonds,undertakings or contracts of suretyship:
Bank depository bonds,mortgage deficiency bonds,mortgage guarantee bonds,guarantees of installment paper,note guarantee bonds,bonds on financial institutions,lease
bonds,insurance company qualifying bonds,self-insurer's bonds,fidelity bonds or bail bonds.
This Power of Attorney is granted and is signed by facsimile under and by authority of the following resolutions adopted by the respective Boards of Directors of INDEMNITY
COMPANY OF CALIFORNIA and DEVELOPERS INSURANCE COMPANY,effective as of September 24,1986:
RESOLVED,that the Chairman of the Board,the President and any Vice President of the corporation be,and that each of them hereby is,authorized to execute Powers of Attorney,
qualifying the attorney(s)named in the Powers of Attorney to execute,on behalf of the corporation,bonds,undertakings and contracts of suretyship;and that the Secretary or any Assis-
tant Secretary of the corporation be,and each of them hereby is,authorized to attest the execution of any such Power of Attorney;
RESOLVED,FURTHER,that the signatures of such officers may be affixed to any such Power of Attorney or to any certificate relating thereto by facsimile,and any such Power of
Attorney or certificate bearing such facsimile signatures shall be valid and binding upon the corporation when so affixed and in the future with respect to any bond,undertaking or
contract of suretyship to which it is attached.
IN WITNESS WHEREOF,INDEMNITY COMPANY OF CALIFORNIA and DEVELOPERS INSURANCE COMPANY have severally caused these presents to be signed by their respec-
tive Presidents and attested by their respective Secretaries this 1st day of April,1993.
INDEMNITY COMPANY OF CALIFORNIA DEVELOPERS INSURANCE COMPANY
-
Caul
By . aitijri r By
Dant F.Vincenti,Jr. Dant .Vincenti,Jr.
President ,OcopP0R,�r'"� resident Qes 01p1SOR4r•l.0,
i OCT.5, c r - MAR 2T, 0 o
ATTEST 1967 o ATTEST 167(i ;
yn�l/F���!� on1�/F*0.)\*aD
By 1 drd By
GJired
Walter Crowell Walter Crowell
Secretary Secretary
STATE OF CALIFORNIA)
SS.
COUNTY OF ORANGE )
On July 15, 1994, before me,the undersigned,a Notary Public in and for said State, personally appeared Dante F. Vincenti,Jr. and Walter A. Crowell, per-
sonally known to me(or proved to me on the basis of satisfactory evidence)to be the persons who executed the within instrument as President and Secretary on
behalf of Indemnity Company of California and as President and Secretary of Developers Insurance Company,the Corporations therein named,and acknowledged
to me that the corporations executed it.
WITNESS my hand and official seal. OFFICIAL SEAL
J. ALVARADO
,;/ /� � a COMM.#1023169
n . A NOTARY PUBLIC-CALIFORNIA
Signature ��ii��r ORANGE COUNTY
Notary Publictri r.1 My Commission Exp.Apr.17,1998
`CERTIFICATE
The undersigned,as Senior Vice President of INDEMNITY COMPANY OF CALIFORNIA,and Senior Vice President of DEVELOPERS INSURANCE COMPANY,does hereby
certify that the foregoing and attached Power of Attorney remains in full force and has not been revoked;and furthermore,that the provisions of the resolutions of the respective
Boards of Directors of said corporations set forth in the Power of Attorney,are in force as of the date of this Certificate.
This Certificate is executed in the City of Irvine,California,this 28TH day of AUGUST ,199 5 .
INDEMNITY COMPANY OF CALIFORNIA DEVELOPERS INSURANCE COMPANY
�,pAN� 9\NSUR�
O`�pPOR7� ?4�pPOR7l�
By fig- OCT.S � MAR.2T. o
� 1967 o By i 1876 0
L.C.Fiebiger n a L.C.Fiebiger o o� ��
Senior Vice President '�i�//ROO .4,? Senior Vice President /iF010 ,,2
in-'sin PFv hoc
•
1D� BOND NO: 194072S
1�'ISC%ICp
� �o)�� INITIAL PREMIUM: $788.00
simonimmImENSUBJECT TO RENEWAL.
SUBDIVISION IMPROVEMENTS
PERFORMANCE BOND
WATER
KNOW ALL MEN BY THESE PRESENTS:
That we, TERRA NOVA RESIDENTIAL L. L. C. as Principal,
and DEVELOPERS INSURANCE COMPANY,a corporation organized and doing business under and by virtue of the laws of the State
of California and duly licensed to conduct a general surety business in the State of California as Surety,are held and firmly bound unto
CITY OF SAN JACINTO
as Obligee, in the sum of THIRTY TWO THOUSAND EIGHT HUNDRED FORTY SIX
($ 32,846.00 ) Dollars, for which payment, well and truly to be made, we bind ourselves, our heirs, executors and
successors,jointly and severally firmly by these presents.
THE CONDITION OF THE OBLIGATION IS SUCH THAT:
WHEREAS,the above named Principal,as a condition of the filing of the final subdivision map of(Tract/Parcel) Map No. 23789 ,
entered into an agreement or agreements with said Obligee to complete the improvements specified in
said agreement or agreements.
NOW THEREFORE, the condition of this obligation is such, that if the above Principal shall well and truly perform said agreement or
agreements during the original term thereof or of any extension of said term that may be granted by the Obligee with or without notice
to the Surety,this obligation shall be void, otherwise it shall remain in full force and effect.
IN WITNESS WHEREOF, the seal and signature of said Principal is hereto affixed and the corporate seal and the name of the said
Surety is hereto affixed and attested by its duly authorized Attorney-in-Fact at
SAN DIEGO
California, this 28TH day of
AUGUST , 19 95
"PRINCIPAL" "SURETY"
TERRA NOVA RESIDENTIAL L. L. C. DEVELOPERS INSURANCE COMPANY
BY:
STEVEN R. BONILLA Attorney-in-Fact
17780 Fitch
Irvine,California 92714
(714)263-3300
DI 113 Rev.2/91
STATE OF CALIFORNIA
SS.
COUNTY OF SAN DIEGO
On �� ' � , before me, D. KOHL
PERSONALLY APPEARED STEVEN R. BONILLA
personally known to me (or proved to me on the basis of
satisfactory evidence) to be the person(s) whose name(s)
is/are subscribed to the within instrument and acknowl-
edged to me that he/she/they executed the same in his/
her/their authorized capacity(ies), and that by his/her/ — ——— - -
their signature(s) on the instrument the person(s), or the D. KOHL
COMM.#1052182 {�
entity upon behalf of which the person(s) acted, executed NOTARY PUBLIC-CALIFORNIA fA
`4« SAN DIEGO COUNTY n
the instrument. U a h±y Gommission Expires j
FE6RUARY 2,3•Ei 9 i WITNESS my hand and official seal. - - — i
Signature - �� This area for Official Notarial Seal
OPTIONAL
Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent
fraudulent reattachment of this form.
CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT
❑ INDIVIDUAL
I-I CORPORATE OFFICER
TITLE(S) TITLE OR TYPE OF DOCUMENT
❑ PARTNER(S) n LIMITED
U GENERAL
❑ ATTORNEY-IN-FACT NUMBER OF PAGES
❑ TRUSTEE(S)
P1 GUARDIAN/CONSERVATOR
❑ OTHER:
DATE OF DOCUMENT
SIGNER IS REPRESENTING:
NAME OF PERSON(S)OR ENTITY(IES)
SIGNER(S) OTHER THAN NAMED ABOVE
1D-CS1 Roy.6/9.( ALL-PURPOSE ACKNOWLEDGEMENT
POWER OF ATTORNEY OF
- INDEMNITY COMPANY OF CALIFORNIA
` • AND DEVELOPERS INSURANCE COMPANY N2 2 3 4 919
P.O. BOX 19725, IRVINE,CA 92713 • (714)263-3300
NOTICE: 1. All power and authority herein granted shall in any event terminate on the 31st day of March,1996.
2. This Power of Attorney is void if altered or if any portion is erased.
3. This Power of Attorney is void unless the seal is readable,the text is in brown ink,the signatures are in blue ink and this notice is in red ink.
4. This Power of Attorney should not be returned to the Attorney(s)-In-Fact,but should remain a permanent part of the obligee's records.
KNOW ALL MEN BY THESE PRESENTS,that,except as expressly limited, INDEMNITY COMPANY OF CALIFORNIA and DEVELOPERS INSURANCE COMPANY,do each
severally,but not jointly,hereby make,constitute and appoint
***STEVEN R. BONILLA, JO ANN PARKER, D. KOHL, JOINTLY OR SEVERALLY***
the true and lawful Attorney(s)-In-Fact,to make,execute,deliver and acknowledge,for and on behalf of each of said corporations as sureties,bonds,undertakings and contracts of
suretyship in an amount not exceeding Two Million Five Hundred Thousand Dollars($2,500,000) in any single undertaking;giving and granting unto said Attorney(s)-In-Fact full
power and authority to do and to perform every act necessary,requisite or proper to be done in connection therewith as each of said corporations could do,but reserving to each of
said corporations full power of substitution and revocation;and all of the acts of said Attorney(s)-In-Fact,pursuant to these presents,are hereby ratified and confirmed.
The authority and powers conferred by this Power of Attorney do not extend to any of the following bonds,undertakings or contracts of suretyship:
Bank depository bonds,mortgage deficiency bonds,mortgage guarantee bonds,guarantees of installment paper,note guarantee bonds,bonds on financial institutions,lease
bonds,insurance company qualifying bonds,self-insurer's bonds,fidelity bonds or bail bonds.
This Power of Attorney is granted and is signed by facsimile under and by authority of the following resolutions adopted by the respective Boards of Directors of INDEMNITY
COMPANY OF CALIFORNIA and DEVELOPERS INSURANCE COMPANY,effective as of September 24,1986:
RESOLVED,that the Chairman of the Board,the President and any Vice President of the corporation be,and that each of them hereby is,authorized to execute Powers of Attorney,
qualifying the attorney(s)named in the Powers of Attorney to execute,on behalf of the corporation,bonds,undertakings and contracts of suretyship;and that the Secretary or any Assis-
tant Secretary of the corporation be,and each of them hereby is,authorized to attest the execution of any such Power of Attorney;
RESOLVED,FURTHER,that the signatures of such officers may be affixed to any such Power of Attorney or to any certificate relating thereto by facsimile,and any such Power of
Attorney or certificate bearing such facsimile signatures shall be valid and binding upon the corporation when so affixed and in the future with respect to any bond,undertaking or
contract of suretyship to which it is attached.
IN WITNESS WHEREOF,INDEMNITY COMPANY OF CALIFORNIA and DEVELOPERS INSURANCE COMPANY have severally caused these presents to be signed by their respec-
tive Presidents and attested by their respective Secretaries this 1st day of April,1993.
INDEMNITY COMPANY OF CALIFORNIA DEVELOPERS INSURANCE COMPANY
0. :/ - 0 r , if?o ,
By By
liA
Dant i F.Vincenti,Jr. Dant F.Vincenti,Jr.
/ Akly
O�%POR4 resident S�NSUq,
President I.
.,topPOR4°. ; o?40pFOq�lQ�
z OCT.S, C -J MAR.27. o
ATTEST 2 1967 o ATTEST i i678 ;
D
si,/47dreil _ Aj");;71rri/1
By By
Walter Crowell Walter Crowell
Secretary Secretary
STATE OF CALIFORNIA)
SS.
COUNTY OF ORANGE )
On July 15, 1994, before me,the undersigned,a Notary Public in and for said State, personally appeared Dante F. Vincenti,Jr.and Walter A.Crowell,per-
sonally known to me(or proved to me on the basis of satisfactory evidence)to be the persons who executed the within instrument as President and Secretary on
behalf of Indemnity Company of California and as President and Secretary of Developers Insurance Company,the Corporations therein named,and acknowledged
to me that the corporations executed it.
WITNESS my hand and official seal. OFFICIAL SEAL
J. ALVARADO
,V' / vr,„,,,,,� COMM.#1023169
' '�7 NOTARY PUBLIC- 2316 CALIFORNIA
Signature ORANGE COUNTY
Notary Public •, My Commission Exp.Apr.17,1998
CERTIFICATE
The undersigned,as Senior Vice President of INDEMNITY COMPANY OF CALIFORNIA,and Senior Vice President of DEVELOPERS INSURANCE COMPANY,does hereby
certify that the foregoing and attached Power of Attorney remains in full force and has not been revoked;and furthermore,that the provisions of the resolutions of the respective
Boards of Directors of said corporations set forth in the Power of Attorney,are in force as of the date of this Certificate.
This Certificate is executed in the City of Irvine,California,this 28TH day of AUGUST ,199 5
INDEMNITY COMPANY OF CALIFORNIA �PAMy DEVELOPERS INSURANCE COMPANY
9"46"1
`Oi ppPOR,1 f; . / 44,`pPPOR,7lo�
f /�Z'' � z OCT.8, C \ ��!/' 7 -, MAR.2T, o
By 2� I967 o By i 1876 a
L.C.Fiebiger •' n\� \�? L.C.Fiebiger o o� \� �
Senior Vice President 4i i/FORT.�� Senior Vice President //FORS 's
AGENDA 7. 3. /
STAFF REPORT
To: Honorable Mayor and City Council
From: George Kaenel, Interim Finance Director
Subj: Selection of Underwriter for CFD2 Workout
Date: September 2, 1999
Recommendation: It is recommended that the City retain Seidler-Fitzgerald Public Finance as
underwriter for bonds issued in connection with the work out plan for Community Facilities
District No. 2.
Background: Seidler-Fitzgerald was the underwriter for the Soboba Bridge bonds. Their fee was
2% of the issue and they attained an interest rate of 6.1% on the bonds. They have proposed a
fee of 1.8%on the CFD 2 work out bonds.
A proposal was received from O'Connor&Company Securities. Suzanne Harrell and I
interviewed William J. O'Connor and Anthony M. Wetherbee of that firm on Wednesday, August
4. Their proposed fee was a"range from 1.50%to 2.25% of the total par amount of the workout
issue." When asked if they could provide one specific rate for the entire issue they gave no direct
answer. The next day I received a fax proposing a fixed rate of$17.50. Suzanne Harrell tells me
in"underwriter jargon"this means $17.50 per$1,000 bond which would translate to 1.75%.
Stone & Youngberg also submitted a proposal and indicated they"will continue to underwrite the
refunding bonds under the terms specified in our Agreement with the City of last year." Their
proposed fee was 1.1%to 1.25% for AAA rated bonds, 1.25%to 1.5 for investment grade (BBB
or better) bonds and 2.5%to 3% for unrated bonds.
I have worked with Seidler-Fitzgerald on several occasions with five different agencies. I have
found them to be cooperative, technically capable and highly professional. Every engagement
resulted in satisfactory results.
My only experience with O'Connor was in the early nineties when the were Chilton& O'Connor.
They were a junior underwriter on a large tax revenue issue by the San Bernardino County
Transportation Authority. They were unable to sell all the bonds assigned to them so the senior
underwriter, CS First Boston, has to take them into their inventory and sell them after closing.
I have never had a working relationship with Stone& Youngberg before the brief one in
connection with the first attempted work out of this same CFD 2 issue.
Based on my experience, I recommended that we retain Seidler-Fitzgerald Public Finance as the
City's underwriter.
AGENDA -
STAFF REPORT
To: Honorable Mayor and CityCouncil
Y
From: George Kaenel, Interim Finance Director
Subj: Market Feasability and Absorption Study for CFD 2
Date: September 2, 1999
Recommendation: It is recommended that the City Council appoint Market Profiles to do a
Market Feasability and Absorption Study for County Services District No. 2
Background: The City Council has directed staff to obtain an independent market feasibility and
absorption study of CFD 2 prior to approving the work out agreement with Elliot Associates.
Suzanne Harrell of Rod Gunn and Associates sent a request for proposal to appraiser firms with
which they were familiar. Three firms responded to that RFP. A copy of each firm's proposal is
presented herewith.
All three firms appear to have the qualifications to perform the study. Therefore, staff is
recommending that the firm with the lowest fee be given the appointment..
August 23, 1999
Mr. George Kaenel
Financial Director
City of San Jacinto
201 E. Main Street
San Jacinto, CA 92583
RE: MARKET FEASIBILITY AND ABSORPTION STUDY, RANCHO SAN
JACINTO, 229 ACRES, SAN JACINTO, CALIFORNIA
Dear Mr. Kaenel:
Market Profiles is pleased to have this opportunity to submit this proposal to provide
Market Research Services to the City of San Jacinto.
It is our understanding that we will be asked to determine the market feasibility unit mix,
size of home, pricing and projected absorption for the remaining 229 acres of the
Rancho San Jacinto master-planned community. The remaining acreage will
accommodate approximately 1,000 homes.
Market Profiles approach to this engagement will be to bring together a project team
comprised of seasoned real estate professionals with expertise in real estate
economics, land planning, market research and residential development. This team
approach is particularly effective in ensuring the synergy between products and the
accommodation of real world market dynamics that is so critical in the development of
successful communities.
The team we have assembled for this project has the talent and experience needed to
provide you, the City of San Jacinto, with the confidence to make the necessary
strategies, and economics concerning this property. The members of the team include:
John Shumway, President
David Dickey, Economist
Bob Reicher, Vice President
Our proposal is definitively outlined in the following sections:
Section I: A description and short history of the firm.
Section II: A listing, description of work, and references for large residential master-
planned communities.
na,
s.
CITY OF SAN J ACINT O
George Kaenel
August 23, 1999
Section III: A summary of Market Profiles work experience and understanding of
Riverside County.
Section IV: Description of the Scope of Services to be performed on four individual
tracts.
Section V: A list with resumes of key personnel and roles in the engagement.
Section VI: A description of the Cost of Service, including rates, reimbursable
expenses, and a description of the schedule of completion for the project.
Mr. Kaenel, we look forward to being a part of the team with the City of Indio and you on
this engagement. Please do not hesitate to call should you have any question,
clarifications, or require further information.
Sincerely,
MARKET PROFILES
John . Shumwa
President
CITY OF SAN JACINTO Market Profiles
George Kaenel
August 24, 1999
SECTION I MARKET PROFILES
Established in 1968 Market Profiles has conducted more than
WHY MARKET 2,000 major market feasibility studies on real estate developments
PROFILES? throughout California, Arizona, Nevada and Texas. The company
is headquartered in Costa Mesa, California with a satellite office in
Dallas, Texas.
Market Profiles is a leader in providing historical, economic,
analysts market and product research, covering the complete
spectrum of real estate development. Our consulting practice is
one of the most detailed, sophisticated, and innovative in the real
estate industry.
Over the past 30 years, Market Profiles has established a solid
reputation for our work on master-planned communities and mixed-
use projects, including The Lakes (Sunrise); East Lake in Chula
Vista; Sun Lakes (Presley); Menifee; and Rancho Santa Margarita.
Our primary role in the process is to ensure that there's sufficient
market support (depth of demand) for each of the proposed land
use components — and to make sure that the sum of these
components is greater than the individual land uses; thus, providing
the necessary "synergy" to absorb multiple product lines.
Residential New Home Trends, a comprehensive residential
database, which covers all for-sale projects in 75 different Southern
California submarkets, is the backbone for our residential analysis.
In the Coachella Valley, for example, we have shopped all for-sale
projects on a quarterly basis since the day they first opened, and
tracked all proposed projects in the planning pipeline. That rich
supply-side information, coupled with economic demand analysis,
is the basis for insightful, realistic, and market-supported
recommendations on how a project can be strategically positioned.
Page 1
CITY OF SAN JACINTO
George Kaenel
August 23, 1999
MARKET PROFILES
SECTION II Key Properties/ Client Work
Location Year Acres Description
REPRESENTATIVE
PROJECT LIST WOOD RANCH- 1979- 4,026 Nu-West: Studies include
Simi Valley 80 development of
recommended product for
overall Master Plan
including attached and
detached, residential and
commercial land uses.
Property later sold to
Olympia & York.
WOOD RANCH- 1994 1,855 Simi Valley School District:
Long Canyon Phase IV Studies resulting in a more
market driven evaluation
of previously
recommended product,
demand projection, and
absorption forecast, a land
valuation/residual value
land analysis, risk
analysis, value
engineering, and design
(Dr. Mary Beth Wo'ford
805/520-6505).
RANCHO SANTA 1981 5,000 Santa Margarita Company:
MARGARITA- Studies involved
Rancho Santa development of land uses
Margarita for the north half of the
Orange County ranch with heavy
emphasis on residential
product (Don Moe 714/
589-4040).
LITCHFIELD PARK 1985 14,400 Goodyear/Westinghouse:
Phoenix, Arizona Developed the initial
Master Plan for 2,000
acres of residential land
uses (Steve Vartan-
Westinghouse 619/341-
1554).
CITY OF SAN JACINTO
George Kaenel
August 23, 1999
Key Properties/ Client Work
Location Year Acres Description
MORENO VALLEY 1987 3,959 Warmington Development:
RANCH (Wolfskill Fam.) Full product and pricing
Moreno Valley, recommendation for all
Sunnymead and residential (Bob Odle
Riverside County 714/557-3198) (Mac
O'Donald 714/996-1394).
AUDIE MURPHY 1992 991 Chevron Pacific: Study
RANCH evaluated the existing plan
Sun City/Menifee and to make the project
more market driven (Don
Means 714/721-9777).
SHELL RANCH 1993 810 Shell Oil Company: Studies
Yorba Linda include full
recommendations for
housing project, pricing and
absorption including
feasibility of an 18-hole golf
course within the
community (George Basye
714/257-1249).
CROWN HILL 1990 412 Taylor Woodrow Company:
Temecula Study developed criteria for
product pricing and sales
rate in a master-planned -
environment (Jeff Proster
714/581-2626).
CHASE RANCH 1990 703 Bennett Consolidated:
Corona Study entailed field
recommendations for
product, pricing, and
absorption.
NORTH PEAK 1991 1,064 TMC Development: Full
Lake Elsinore product and pricing for
residential and commercial.
CITY OF SAN JACINTO
George Kaenel
August 23, 1999
SECTION III MARKET PROFILES
In addition to the collection of data on a quarterly basis for
SUMMARY OF Residential New Home Trends since 1968, Market Profiles has
WORK prepared numerous Market Feasibility studies for developers and
EXPERIENCE IN builders wishing to better understand the new home residential
RIVERSIDE market in Riverside County.
COUNTY Selected examples of recent study clients include:
• Inland Group, Beaumont
Buie Corporation, Corona Ranch
• Weyerhaeuser Venture, Temecula, Perris and Menifee
Mesa Grande Partners, Hemet
• Siegal Ranch Partners, Lake Matthews
• Lake/Kuhn Pacific, Murrieta
• Bank of California, Temecula
• Desert Wells County Club, Palm Desert
• Brookfield California Holding, Menifee
Avanti, La Quinta
• Brookfield California Holdings, Winchester 1800
• Brookfield California Holdings, Desert Hot Springs
• Shadow Ridge, Palm Desert
• Brookfield California Holdings, Oak Valley, Calimesa
Brookfield California Holdings, Audie Murphy, Riverside
County
• Bergheer California, Rancho Mirage
CITY OF SAN JACINTO
George Kaenel
August 23, 1999
SECTION IV RESIDENTIAL
To assess the market opportunity for the remaining acreage of the
Data Collection subject property, Market Profiles will perform the following:
And Analysis
❑ An economic background analysis including a review and
forecast of housing demand by price range for the City of San
Jacinto Economic Study Area (ESA) based upon the following
factors:
Employment
• Population growth
• Household formation and composition
• Income levels
• Historical absorption trends
Consumer attitudes
• Overall economic conditions
Cl A detail field survey of competitive projects within the
Competitive Housing Market Area (CHMA) to determine specific
product characteristics, features, recreational amenities, unit
pricing, premium structures, sales experience, and consumer
profiles. For the purpose of this report, the CHMA will include:
The cities of Hemet, Perris, Sun City, Moreno Valley, Temecula
and selected unincorporated areas of West Central Riverside
County.
❑ A review of resale activity in the CHMA to determine home
values and activity levels.
❑ A review of historical new-home sale trends to determine past
absorption levels among specific price ranges and product
types.
❑ A review of proposed competitive development activity for the
CHMA to assess the future posture of the marketplace.
❑ A physical inspection of each subject development site to
evaluate the strength of the location versus the most salient
competition including topography, climate, ingress/egress,
neighborhood composition, schools, shopping and recreational
amenities while being aware of any special features inherent
with the site.
CITY OF SAN JACINTO
George Kaenel
August 23, 1999
Conclusions and Based upon an analysis of the aforementioned primary research,
Recommendations concise conclusions and specific recommendations will be derived
as follows:
❑ Characterization of the current and projected market conditions
relative to the development of the subject site.
❑ Recommendation of a mix of lot and residential products
including lot sizes and configuration.
❑ Recommendation of overall project design parameters to satisfy
the identified market opportunities including, type of residenta;
concepts, densities, lot sizes, product mix, and phasing.
❑ Recommendation of overall specific product design parameters
in number plans mix, square footage of the homes bedroom,
bath , special rooms and size of garage.
❑ Recommendations of optimum pricing, premium range, and
financing.
❑ Forecast of market absorption by product type.
CITY OF SAN JACINTO
George Kaenel
August 23, 1999
Mr. Shumway is the President of Market Profiles and comes to
SECTION V market research by way of the development and brokerage side of
the real estate business. Prior to joining Market Profiles in 1983,
RESUMES OF KEY he served as Director of Acquisitions for Ponderosa Homes and
PERSONNEL Vice President for construction at San Roque Development. He is
a principal in the firm and oversees both residential and commercial
John R. Shumway divisions.
Project Director A particular area of specialization is developing land use
recommendations for major master-planned/specific plan
communities and large-scale, mixed-use developments, creating a
synergy between residential product lines and commercial
industrial elements.
Representative projects include:
• Rancho Cielo Vista, a master-planned community with a
golf course developed by Shell Oil in Yorba Linda, California
▪ Foothill Ranch, developed by Hon Development is a
master-planned community with a 300-acre business park in
Lake Forest, California
Summerlin, a 559-acre master-planned community
developed by Sumitomo in Las Vegas, Nevada.
John has been an expert witness on several cases involving
residential and commercial developments.
John is on the Board of the Commercial Industrial Development
Association of Orange County (CIDA), and an active member of the
Building Industry Association of Orange County (BIA-OC), the
National Association of Industrial Office Parks (NAIOP), and the
Urban Land Institute (ULI). He is a frequent speaker at industry
events as well as at UCI, UCLA and other academic organizations.
CITY OF SAN JACINTO
George Kaenel
August 23, 1999
David Dickey Dave Dickey is Market Profiles' Senior Economist in charge of all
Senior Economist economic forecasting, and market demand analyses. He also acts
as project manager for selected site-specific market analyses.
Since joining the firm in 1978, Dave has formulated regional
economic forecasts in the following Southern California areas:
• Ventura County
• Riverside County
• San Diego County
• San Bernardino County
• Orange County
.) Bakersfield
In addition, he has formulated regional forecasts for Portland,
Oregon; Denver, Colorado; Austin, Texas; Houston, Texas; Seattle,
Washington, Phoenix, Arizona; and Tucson, Arizona.
Mr. Dickey's experience includes financial pro forma and land
residual analyses of residential and commercial developments. He
has developed absorption forecasts and specific development
recommendations for over 600 projects, including:
Master-planned communities
• Single-family detached/attached
• Retail
.) Mixed-use projects
-) Industrial
• Office
Mr. Dickey is a graduate of California State University, Long Beach
f Arts de ree in Economics.
with a Master o g
CITY OF SAN JACINTO
George Kaenel
August 23, 1999
Robert Reicher Mr. Reicher has been active in the real estate development industry
Vice President since 1970. Prior to joining Market Profiles, he has held positions
as Manager-in-Charge of real estate consulting for Der}oitte &
Touche, as well as Principal with Economics Research
Associates, Director of Operations for The Goodkin Group and
Director of Research for a major multi-market developer/builder.
Mr. Reicher has been involved in the planning, processing,
development, building and marketing of major residential, resort
and commercial/mixed use developments, ranging form free-
standing residential income properties to large-scale, multi-use
resorts and planned communities across the U.S., as well as in
Canada, Japan and other Pacific Rim countries.
Among Mr. Reicher's areas of experience and expertise are the
following:
• Market and financial feasibility studies of residential, retail/commercial, office,
industrial, resort/hotel, and mixed use projects.
• Creation of development, advertising and marketing plans for planned
community and resort projects at various stages of project life cycle
• Consumer and trade focus group studies and surveys
• Acquisition and disposition analysis for major commercial and industrial
property transactions and 1031 exchanges
• Preparation of project pro formas and other due diligence materials for debt
and equity offerings or transaction decision-making
• Creation of marketing plans for workout of troubled projects
• Strategic business plans for start-up entities and ongoing operations or
restructuring of existing companies
• Structuring and negotiation of major property purchase and financing
packages
• Expert witness and consulting for complex commercial litigation involving
office, hotel, resort, and retail properties
• Valuation of undeveloped land and developed commercial properties
• Fiscal impact and economic impact analysis of proposed developments
• Public/private development programs for local governments
Mr. Reicher holds a BS degree from University of California Los
Angeles and MBA in Marketing from University of Southern
California. His expertise in residential and commercial real estate
has been utilized in an expert witness capacity before various
boards, commissions and courts. He also is a licensed Real Estate
Broker in the State of California.
CITY OF SAN JACINTO
George Kaenel
August 23, 1999
SECTION VI U Market Feasibility and Absorption Analysis
FEE AND DATA
SCHEDULE
FEE Our fee to complete the scope of services as outlined above will be
$8,000 including expenses and two meetings with City staff.
Four copies of the report are included in the fee. Additional copies,
or project review time beyond the scope of services outlined above,
if desired, will be billed separately on a Time and Materials basis.
The hourly rates for the above scope of services are:
Project Director $125
Senior Project Manager $90
Economist $85
Senior Development Advisor $75
Senior Market Consultant $65
Analyst $50
Production $45
SCHEDULE
Market Profiles estimates the data development and analysis time
necessaryto complete this assignment will require approximately
45 days, given current staff commitments. A verbal presentation of
our conclusions and recommendations will be made within 30 days
of your acceptance of this proposal and receipt of the required
retainer.
•
CITY OF SAN JACINTO
George Kaenel
August 23, 1999
AGREEMENT
Should you desire Market Profiles to cease work prior to completion
GENERAL of the report, our fee will be determined on a time and materials
CONDITIONS basis for the work completed at the time of cancellation. In the
event payment is not made within 30 days of the invoice date, the
amount outstanding will be charged a delinquency fee of 1.5
percent per month.
If any law or action of inequity is brought to enforce or interrupt the
provisions of this agreement, the prevailing party shall be entitled to
reasonable attorney's fees in addition to any other relief to which
the prevailing party may be entitled.
This agreement shall be deemed to have been entered into in the
County of Orange, State of California, and all questions concerning
the validity, interpretation, or performance of any of its terms or
provisions, or of any rights or obligations of the parties hereto shall
be governed by and resolved in accordance with the laws of the
State of California.
APPROVED AND ACCEPTED:
CITY OF SAN JACINTO
By: Date:
EMPIRE ECONOMICS, LLC
Economic-Real Estate Consultants
Joseph Thomas Janczyk, Ph.D.
35505 Camino Capistrano, Suite 200
Capistrano Beach, CA 92624
Phone : (949) 661-7012
Fax: (949) 661-8763
August 18 , 1999
Mr. George Kaenel
Finance Director
City of San Jacinto
201 E. Main Street
San Jacinto, CA 92583
Re: Market Absorption Study: City of San Jacinto
Community Facilities District No.2
Dear Mr. Kaenel :
Empire Economics is pleased to provide you with a "scope of
services" for the Market Absorption Study for the City of San
Jacinto' s Community Facilities District No . 2 , hereafter referred to
as CFD No. 2 .
Components of the Market Absorption Study
To facilitate your review of Empire Economics' Market Absorption
Study, it has been partitioned into the following components :
1 . Credentials/Qualifications and Bond Financing Experience
2 . Approach to Performing the Market Absorption Study
3 . Scope of the Consulting Services to be Performed
4 . Presentation/Dissemination of Absorption Schedules
5 . Time Schedule for Conducting the Market Absorption Study
6 . Factors Underlying the Estimation of the Consulting Fee
1
1. Credentials/Qualifications and Bond Financing Experience
Empire Economics is an economic and real estate consulting firm that
specializes in conducting market absorption studies on behalf of
public entities for residential, commercial, and industrial projects
located throughout California, with an emphasis on Master Planned
Communities and Business Parks in Southern California, including
Riverside County.
Empire Economics conducts market absorption studies only
for public entities, in order to avoid potential
"conflicts of interests" that may occur if consulting
services were also provided to developers/builders; this
enhances the credibility of the study in the municipal
marketplace.
Empire Economics' experience with municipal tax-exempt issues during
the past fifteen years has been as follows :
* Mortgage Revenue Bond Financings : Over fifty issues with
bonds amounting to over $1, 700, 000, 000 .
* Mello-Roos/Assessment District Financings in which bonds
have been sold: Over one-hundred issues with bonds of
approximately $2 , 000, 000, 000 .
* Mello-Roos/Assessment District Financings that are
presently in their formative stages : over twenty issues
that have forthcoming bonds amounting to $500, 000 , 000 .
* Socioeconomic Forecast/Market Study for the refunding of
the San Joaquin Hills Transportation Corridor (SJHTC) , a
seventeen mile toll road located in south-coastal Orange
County. During the process of securing a rating for the
Bonds, Empire Economics had meetings with the three rating
agencies (all of whom subsequently provided investment
grade ratings) and also the Bond Insurer, MBIA (which
insured over 50% of the Bonds . ) Additionally, on an
investor tour in California, New York, Boston, and Chicago,
Empire Economics made more that ten presentations to over
thirty major municipal Bond Funds . The SJHTC Bonds,
amounting to $1 . 5 billion were successfully refunded in
September 1997 : for thirty year bonds, an insured yield of
5 . 5% and an uninsured yield of 5 . 7% .
Consequently, Empire Economics has a considerable amount of
experience with the special characteristics of the Market Absorption
Study that are required for Community Facilities District Bond
Financings as well as the particular types of information that the
other consultants utilize from the Study, such as the Appraiser and
Special Tax Analyst . Additionally, Empire Economics is familiar with
the types of information that are required for use in the Official
Statement .
2
With respect to the County of Riverside, in particular, Empire
Economics has conducted numerous Market Studies for Mello-Roos and
Assessment Districts located throughout Riverside County, including
the cities of Temecula, Murrieta, Lake Elsinore, and Corona as well
as the other cities/communities in the County of Riverside, in
general .
Consequently, the Bond Funds are familiar with Empire
Economics, in general, and also the Market Studies that it
has conducted for Planned Communities and Business Parks in
the County of Riverside, in particular.
2 . Approach to Performing the Market Absorption Study
Empire Economics Market Absorption Studies are conducted by Joseph T.
Janczyk with assistance from his staff .
The principal consultant for the Market Absorption Study is
Dr. Joseph Thomas Janczyk. He will design the economic real
estate model for CFD No.2 and present the conclusions to
the City of San Jacinto.
Additionally, he will be assisted by his staff, which will be
responsible for the compilation of the economic and real estate data
required for the research and also conduct market field surveys.
Copies of the Market Absorption Study will be provided to the
appropriate parties and discussed with them; additionally, a
"Summary and Conclusions" of the Study will be provided for the
Official Statement .
3 . Scope of the Consulting Services to be Performed
The purpose of this section is to provide an overview of the
consulting services that will be conducted for the Market Absorption
Study for CFD No.2 . Accordingly, to perform a comprehensive analysis
of the macroeconomic and microeconomic factors that influence the
absorption of the forthcoming residential projects in CFD No. 2 ,
Empire Economics' Market Absorption Study conducts a systematic
analysis of the following:
Identification of the Proposed Product Mix:
* The most probable product mix, along with prices and sizes
of living area, for the 1, 000 future residential units in
CFD No.2 will be identified, based upon the planning
approvals (lot size configurations) for the properties as
well as the current/expected real estate conditions in the
Market Area. Furthermore, the expected product mix will be
3
compared to the product mix proposed by the developer
(based on marketing plan by the Meyers Group) . Then, the
similarities/differences will be identified, so that the
City of San Jacinto can evaluate the developer' s
restructuring proposal.
Macroeconomics Components
* The Market Region' s, future employment growth is forecasted
for the 1999-2005 time period. This involves an economic
base analysis of the recent employment growth, as a whole,
as well as the composition of this growth by various
economic sectors, in particular, along with the expected
employment trends and patterns during this time period.
Based upon Empire Economics' experience in conducting 150+
Market Studies, these macroeconomic factors are regarded as
being the most significant determinants of the actual
performance of Planned Communities and Business Parks in
the marketplace, and, as such, they represent a critical
component of the Market Absorption Study.
* Empire Economics then uses the Market Region' s employment
forecasts to derive estimates of the Riverside County' s
future population growth and housing demand during the
1999-2005 time period.
* Next the proportion of Riverside County' s future
employment, residential, and commercial-industrial growth
that is expected to be captured by the Market Area for CFD
No.2 is estimated. Based upon recent research that Empire
Economics has conducted for other Planned Communities in
Riverside County; the Market Area for CFD No. 2 encompasses
P
those cities that are located in the central portion of
Riverside County, including San Jacinto and Hemet as well
as their surrounding communities .
Microeconomics Components
* The microeconomic analysis focuses upon the competitiveness
of the forthcoming projects/properties in the District as
compared to the competing residential projects within the
Market Area, the central portion of Riverside County. The
analysis deals with various regional factors as well as the
specific features/attributes of the District' s forthcoming
projects .
* The competitiveness of CFD No.2' s housing products is
evaluated based upon a systematic analysis of the expected
characteristics of the forthcoming projects in the District
4
with the comparable/competing projects. Specifically, this
involves a consideration of their respective locations,
prices, lot sizes, living areas, Special Taxes, amenities,
and other factors.
Absorption Schedules
* The market absorption schedules for the forthcoming
residential units in CFD No. 2 are presented in the
following manner:
♦ Aggregate Absorption Schedule: This analyzes the
market demand and supply conditions for all of the
residential product types in CFD No. 2 , as a
whole.
♦ Specific Absorption Schedules - Each Product Type:
This involves a disaggregation of the aggregate
absorption for the residential units to each of
the specific product types, sizes of living area.
This process is necessary to provide the relevant
absorption information to the Special Tax Analyst
and the Appraiser.
Therefore, the Market Absorption Study systematically proceeds from
the macroeconomic analysis of CFD No.2 Market Region' s future
employment, population, and housing growth to the microeconomic
analysis of the competitive product mix of its projects and the
absorption schedules for the residential products .
4 . Presentation/Dissemination of Absorption Schedules
Based upon Empire Economics' previous experience in conducting Market
Absorption Studies for Mello-Roos Districts, Empire Economics will
provide the key results in a convenient form for the other
professionals .
* Appraiser: Empire Economics will provide the Appraiser with
absorption schedules for each of the product types, with
respect to the number of units absorbed each year, from
market-entry to build-out .
* Special Tax Analyst: Empire Economics will also provide the
Special Tax Analyst with the estimated absorption schedules
by product type, so that the amount of Special Taxes that
are expected to be paid by the developer/builders (as
compared to the final-users/homeowners) can be calculated.
5
* Financial Advisor/Underwriter: Empire Economics will
provide copies of the Market Absorption Study for the
finance team in the Bond Issue and furnish a "Summary and
Conclusions" of the Market Absorption Study for use in the
Official Statement .
5 . Time Schedule for Conducting the Market Absorption Study
Since Empire Economics has a background in performing Market
Absorption Studies for Community Facilities Districts, the proposed
time schedule allows for an interaction with the financing team, so
that the final study is utilized in a timely and effective manner.
Preliminary Product Mix/Absorption Schedules . three/four weeks
Final Market Absorption Study five weeks
Therefore, Empire Economics will deliver the Absorption Schedules in
three/four weeks after the commencement of the study, and the
comprehensive Market Absorption Study within five weeks .
6 . Factors Underlying the Estimation of the Consulting Fee
Empire Economics' fee schedule is based upon the costs of providing
consulting services for a Market Absorption Study that is appropriate
for a Bond Financing. Specifically, the comprehensiveness and scope
of these consulting services are obtained from discussions with
prospective bond purchasers, the Bond Funds, in terms of the analysis
that they regard as being appropriate. Empire Economics maintains
contact with the Bond Funds through seminars, meetings, and telephone
conversations .
With respect to the scope of the consulting services, these
need to be comprehensive enough so that they clearly
demonstrate to prospective bond purchasers the marketing
prospects for the forthcoming residential products in CFD
No.2; the scope of consulting services defined herein will
clearly address all of these factors.
Accordingly, the financial consideration for conducting the Market
Absorption Study for CFD No. 2 is $14 , 000, and this will be invoiced
as a retainer of $8, 500 and a final payment of $5, 500 upon completion
of the Study.
The fee includes providing the key results to the Appraiser, Special
Tax Analyst and providing a "Summary and Conclusions" for the
Official Statement, and answering questions that the bond purchasers
may have.
6
Closing Comments
The Market Absorption Study will provide the City of San Jacinto with
a means of establishing a Framework for the evaluation of the
restructuring of the Bond Issue for CFD No . 2 , especially with respect
to the amount of Special Taxes, along with the payment of these
Special Taxes by Homeowners vs. the Builders/Developer.
If you have any additional comments or considerations, contact me as
I would be pleased to respond to them.
I am looking forward to assisting you with CFD No.2 .
Sincerely,
1011
Jo Thomas Janczyk, Ph.D.
Economic Consultant
Enclosures
cc : Ms . Suzanne Q. Harrell
7
RESUME
Joseph Thomas Janczyk, Ph.D.
President, Empire Economics, LLC
For the past twenty years, Dr. Joseph T. Janczyk, president of
Empire Economics, LLC, has prepared market absorption studies for more
than two hundred Planned Communities and Business Parks, providing the
comfort level required for numerous California counties, cities, school
districts, water districts and other special districts to finance over
five billion dollars worth of capital improvement projects .
One of Dr. Janczyk' s most notable market absorption studies was
for the San Joaquin Hills Transportation Corridor, a seventeen-mile
toll road located in south coastal Orange County. His specialized
knowledge and active participation as a member of the finance team
during the rating agencies and bond insurance meetings as well as
presentations to over thirty municipal bond funds was key in the
issuance of $1.5 billion in refunded revenue bonds, including a AAA
rating for the insured bonds .
Dr. Janczyk focuses on assuring his public agency clients that the
proposed developments are both efficient (that there is a real demand
for the forthcoming residential, industrial and commercial office
products) and equitable (that the public entity' s reputation is
protected in the marketplace by reducing the potential for foreclosures
or defaults) . He has an outstanding reputation for providing sound
economic advice to the public sector, and minimizes the possibility for
conflicts of interest by not providing services to the private sector,
such as developers/builders .
His affiliations include the National Association of Business
Economists, the Appraisal Institute, and the California Association of
Realtors, amongst others . He has been a featured speaker at numerous
seminars including the Municipal Bond Analysts, California Debt
Advisory Commission, and California Association of Realtors, and
Moody' s Investor Services amongst others .
Dr. Janczyk received his Bachelor of Arts degree in Economics and
Psychology from the State University of New York, and his Masters and
Doctorate in Economics from the University of California. As a tenured
Economics Professor at California State University, he taught courses
in microeconomics, macroeconomics, regional economics, and computer
modeling. To complement his background in economics, he has become a
licensed California real-estate broker and an MAI Candidate, having
completed his course-work as well as a substantial amount of the
required appraisal experience credits .
EMPIRE ECONOMICS' SOCIOECONOMIC STUDY UTILIZED IN
THE LARGEST MUNICIPAL FINANCING IN THE UNITED STATES
DURING THE PAST TWELVE MONTHS
ORANGE COUNTY TOLL ROADS $1. 6 BILLION
Empire Economics' Approach to Market Studies Affirmed by Marketplace
Empire Economics' (EE) methodology underlying the Socioeconomic Forecast Study for the FoothilllEastern
Transportation Corridor (F/ETC) was based upon the same approach that EE has utilized in more than 200
Market Studies for various Mello Roos/Assessment Districts and other financings on behalf of public agencies.
The approach that EE utilizes in providing realistic forecasts along with built-in safeguards for potential
risk factors has been accepted in the municipal marketplace. The high degree of credibility benefits
Issuers by reducing the risk of a default; additionally, it also generates a strong demand for the Bonds,
and hence lower interest rates.
Socioeconomic Forecast Study Utilized to Structure the Bond Issue
Empire Economics (EE) provided a long-term socioeconomic forecast of employment and housing for the
F/ETC Market Region, Orange, Riverside and San Bernardino counties, and each of their 780 Census
Tracts, utilizing a realistic economic and real estate development scenario. Furthermore, EE
incorporated various safeguards into the forecast, including the El Toro Reuse Plan as well as the
development future potential acreage in southern Orange County.
EE's forecasts were utilized by Wilbur Smith Associates (WSA), the traffic engineer, to project toll revenues,
and then, these were utilized to structure the annual debt service payments, which start at $25 million per year
and eventually reach $350 million per year.
Investor Road Show Features Innovative Presentation Techniques
> Twelve presentations to over forty Bond Fund representatives in New York,Boston,
Philadelphia and Chicago.
> Effective communication of the socioeconomic analysis utilizing colorful graphics,
maps and aerials,as shown on the opposite page.
> Presentation via the Internet was accessed by prospective bond purchasers that were
not able to attend the meetings.
Overwhelming Market Response to Bond Offering
> Three rating agencies provided investment grade ratings to the bonds.
➢ Bond insurance was offered by MBIA.
➢ The F/ETC Bond Issue of $1.6 billion was initially offered in the marketplace with yields
that were regarded as being"aggressive".
> Initial orders by more than 80 bond funds generated a demand for some$10+billion.
EE prepared two maps which effectively represent how the F/ETC connects the current/future employment and
residential centers; these were printed in color in the Official Statement, and are reproduced on the other side.
EMPIRE ECONOMICS, LLC
Joseph Thomas Janczyk,Ph.D. Economic-Real Estate Consultants
35505 Camino Capistrano,Suite 200 Phone: (949)661-7012 FAX: (949) 661-8763
Capistrano Beach,CA 92624 E-Mail:joejanczyk@msn.com
•
ERA
Economics Research Associates
August 20, 1999
Mr. George Kaenel
Finance Director
City of San Jacinto
201 E. Main Street
San Jacinto, California 92583 ERA Proposal No. 37610
Dear Mr. Kaenel:
Economics Research Associates (ERA) is pleased to submit this
proposal for residential market research and consulting services relative to the City
of San Jacinto Community Facilities District #2. It is our understanding that the
bondholder/developer intends to acquire a substantial portion of the property within
the District through a foreclosure action, and develop single-family residential.
While the bondholder/developer has commissioned a feasibility study and
marketing plan, the City requires that an independent study be prepared as a basis
for unit mix, unit size, absorption, and pricing projections. The District currently
contains 560 homes, plus 250 acres of vacant land that could be developed with up
to 1,000 additional units.
SCOPE OF WORK
The scope of work would include, although not necessarily be limited
to, the following tasks:
1. Meet with the City/Rod Gunn Associates staff to review the
objectives, work scope, and background of the project.
2. Inspect the subject property, both existing product and vacant land.
3. Review the project history including absorption rates, pricing,
product mix, and other features. Also review the bondholders/
developers' plans for the undeveloped property.
4. Analyze historical, current, and projected market area demographics.
10990 Wilshire Boulevard Suite 1500 Los Angeles, CA 90024
310.477.9585 FAX 310.478.1950 www.econres.com ERA is affiliated with Drivers Jonas
Los Angeles San Francisco San Diego Chicago Washington DC London
ERA
City of San Jacinto
ERA Proposal No. 37610
August 20, 1999
Page 2
5. Analyze housing demand and supply characteristics including sales
activity, building permits, planned and proposed residential activity,
and the like.
6. Survey actively marketed residential projects in the market area.
Document product characteristics (mix, size, pricing), absorption,
and other project features.
7. Evaluate other market dynamics including, but not limited to, new
employees, opening of the Reservoir, and other events that may
influence residential potentials.
8. For the subject property, project:
• Product type and mix
• Unit size
• Product pricing
• Lot value structure
• Annual absorption
• Other characteristics
At the conclusion of this work effort, a full report documenting the
research, analysis, and findings will be prepared.
QUALIFICATIONS
ERA is an independent land use economic research and consulting firm
headquartered in Los Angeles. The firm has offices in Los Angeles, San Francisco,
San Diego, Washington DC, Chicago, and London. The majority of our real estate
residential consulting is performed in our California offices. The firm was
established in 1958 and has about 75 professional staff with an average tenure of
more than 10 years. Our corporate brochure and other information is attached.
Relevant experience over the past several years within the Inland
Empire/southwest Riverside County area includes:
ERA
City of San Jacinto
ERA Proposal No. 37610
August 20, 1999
Page 3
• Heartland/MSK Development. Market analysis and financial
projections of 1,800-unit active adult community proposed for
Hemet, California.
• Heartland/MSK Development. Analysis of conventional housing
component within the Heartland community.
• Best, Best & Krieger. Analysis of residential market conditions in
southwest Riverside County involving litigation.
• Bank of Montreal. Analysis of residential market support for
Corona Ranch.
• Metropolitan Water District. Analysis of residential potentials for
Domenigoni Reservoir.
• Gentry Development. Residential acquisition potentials for large
acreage properties in the Temecula-Murrieta area.
• The Reserve at Hidden Valley. Market analysis for the Reserve at
Hidden Valley, a golf course oriented community in Palm Desert.
• RKG Holdings. Pricing and absorption potentials for the Oakcrest
project in the Chino Hills area of San Bernardino County.
STAFF
ERA will assign Mr. Austin G. Anderson, Mr. Gene P. Krekorian, and
Ms. Anne Wurts to this project. Mr. Anderson and Mr. Krekorian have over 25
years experience with ERA, with substantial experience within the southwest
Riverside County market area, and Ms. Wurts has three years experience. Resumes
for this staff are attached.
TIME AND BUDGET
The proposed scope of work will require approximately four weeks to
complete and a fixed fee budget of$13,720.
ERA
City of San Jacinto
ERA Proposal No. 37610
August 20, 1999
Page 4
Professional Time $13,200.00
Publications 320.00
Out of Pocket Expenses 200.00
Total $13,720.00
AUTHORIZATION
Authorization to proceed may be indicated by returning a signed copy of
this letter proposal to ERA. We appreciate your interest in ERA and look forward
to working with you on this most interesting assignment.
Respectfully submitted, ,
C,ll�
Gene P. Krekorian
Senior Vice President
GPK/skc
Attachments
cc: Ms. Suzanne Harrell
ACCEPTED: DATE:
ACCEPTED: DATE:
ECONOMICS RESEARCH ASSOCIATES
AUSTIN G. ANDERSON, President
Personal Qualifications in Real Estate and Land Use Economics
Economics Research Associates is the world's largest independent firm specializing in land use
economics consulting. Headquartered in Los Angeles, with offices in San Francisco, Chicago,
Washington DC, San Diego and London, the firm was founded in 1958, and Mr. Anderson has been
President since 1988.
Mr. Anderson's personal consulting background includes a broad range of assignments in land use
economics, development, and related disciplines. He was recently involved in formulating a business
strategy and valuation for several large-scale multi-use land development projects.
Mr. Anderson has conducted market analyses, marketing plans, valuations, industrial development
studies, site location studies, and business strategy formulation studies for all major commercial,
residential, industrial, and recreational land uses, for both private and public sector clients, with
particular focus on multi-use planned communities. He has been personally involved in projects in
25 states and over 12 countries. Clients served include such major firms as Ahmanson
Development/Home Savings of America, AVCO, Aerojet, Chevron Land, The Irvine Company, Ford
Motor Land Development, Howard Hughes Development, Kajima, Lowe Associates, Mission Viejo
Company, Olympia & York, J.M. Peters, Prudential, Rancho Santa Margarita, Tejon Ranch
Company, Bank of America, Pacific Telesis, Victor Palmieri and Company, Walt Disney
Productions, Starwood Capital, Warner Bros., and Watt Industries; as well as many major cities,
redevelopment agencies, state agencies, architectural firms, landowners, law firms, and leading
smaller developers.
Mr. Anderson's public sector experience includes local and regional economic impact studies; new
county government formation strategies for Peninsula, Canyon, and Fresno counties; and numerous
general plan economics and transportation economics assignments. He prepared a detailed market
and financial plan for the reuse of Lowry Air Force Base in Denver, and was a long-term consultant
to major redevelopment projects in Pasadena, Los Angeles, and other cities.
Mr. Anderson was closely involved in the original design and continuing development of ERA's
methodologies and computer models for financial analysis and valuation of major income properties
and new community development, and has developed programs for municipal cost/revenue analysis.
Mr. Anderson's prior experience includes four years as principal and co-founder of the real estate
consulting firm of Levander, Partridge & Anderson, Inc., and he has developed condominiums and
single-family homes. He was the Director of research and financial analysis for Property Research
Corporation. He was also involved in facilities management and systems analysis for California
Institute of Technology's Jet Propulsion Laboratory.
Mr. Anderson received his B.S. degree from Stanford University and an M.B.A. degree from the
Stanford Graduate School of Business. He has been an instructor in real estate economics at UCLA's
Graduate School of Management, a member of the Board of Councilors of the USC School of Urban
and Regional Planning, a trustee of the Real Estate Investment Trust of California, and a member of
the Urban Land Institute.
ECONOMICS RESEARCH ASSOCIATES
GENE P. KREKORIAN, Senior Vice President
Qualifications in Real Estate Economics
Mr. Krekorian has conducted a broad range of research and consulting assignments in real estate
economics during his 25-year tenure with Economics Research Associates. He has specialized
in analyzing acquisition/disposition opportunities and development feasibility. Increasingly, he
serves as a consultant in providing economic and financial input in public-private development
and developer negotiations.
Mr. Krekorian has conducted a variety of assignments for public agencies regarding developer
negotiations relative to ground lease or public-private development agreements. Representative
projects include the Koll Company office complex in downtown San Jose; a specialty shopping
center in West Covina; a restaurant/banquet complex in Montebello; public golf facilities in
Escondido, Costa Mesa, and Oxnard; and an open space acquisition in San Luis Obispo.
For the City of Long Beach Redevelopment Agency/Economic Development Department, Mr.
Krekorian has conducted several assignments including the economic evaluation and ground lease
potential for the Queensway Bay project which would involve redevelopment of the city's
downtown waterfront. For the Los Angeles Community Redevelopment Agency (LACRA), he
has conducted a number of assignments involving Los Angeles' downtown redevelopment. These
include an evaluation of developer subsidies for the proposed convention center hotel, the impact
of proposed LACRA benefit policies on downtown redevelopment activity, and analysis of a
LACRA site at Fifth and Hill Streets for private mixed-use development.
For many of the most successful large-scale, multiuse developments in Southern California, Mr.
Krekorian had a major role in analyzing development potentials, evaluating alternative business
strategies, or providing master plan input. During the last several years he has been involved with
The Irvine Ranch, Rancho Bernardo, Rancho Penasquitos, Laguna Niguel, Rancho California,
Cote de Caza, Playa Vista, Santa Fe Valley, La Costa, Aptos Seascape, and Rancho Murrieta,
among others.
Mr. Krekorian has also conducted a large number of consulting assignments relating to the
development feasibility of single-use and mixed-use residential, commercial, industrial and
recreational land uses. His experience in market research and financial analysis relates to the
development of planned residential communities, office parks, regional and neighborhood
shopping centers, hotels, recreation land projects, and golf resorts.
As demonstrated by the above sampling of completed assignments,Mr. Krekorian is a skilled real
estate economic analyst. Some of the major public clients he has served as consultant for include
the City of Los Angeles Community Redevelopment Agency;City of Long Beach Redevelopment
Agency/Economic Development Department; Cities of Montebello, Ventura, Oxnard, San Luis
Obispo, El Segundo, and Rancho Palos Verdes; State of California Housing Finance Agency; and
the San Diego Unified Port District.
Mr. Krekorian received B.A. degrees in Mathematics and Economics from Pomona College, and
an M.S. degree in Business Economics from the University of California at Los Angeles. Mr.
Krekorian is a Certified General Real Estate Appraiser as licensed by the State of California.
ECONOMICS RESEARCH ASSOCIATES
ANNE W. WURTS, Associate
Based in ERA's Los Angeles office, Ms. Wurts has participated in a broad range of
entertainment, recreation and real estate-related projects. In the field of feasibility studies
concerning recreational developments, Ms. Wurts has completed studies on recreational
facilities for private developers in California.
Earlier this year, Ms. Wurts conducted a feasibility study in Santa Maria, California. The
study involved analyzing the respective competition in the region, estimating the prospective
demand for the facility, and generating financial projections over a five-year period. The
project involved an extensive operational costs and revenue forecast utilizing different
scenarios.
Ms. Wurts has also participated in a viability and market research study for a Canadian
developer for a proposed six-ice rink facility in Southern California. The study involved an
analysis of ice hockey and figure skating trends in the region, projections of estimated
demand, an analysis of existing facilities and case studies of other successful ice rinks
throughout the U.S.
In addition to her work on recreational facilities, Ms. Wurts has participated in a variety of
real estate-related projects. She formed part of a research team for a proposed $1 billion
hotel/casino project in Las Vegas, analyzing the local supply, demand and trends regarding
the development of a retail shopping center within the facility. Also, in the City of West
Hollywood she performed a market study of available rents and projected future cash flows
for a commercial real estate venture. Other projects include a market feasibility analysis for
a proposed $250 million high-rise condominium project along the Wilshire Corridor in West
Los Angeles.
Ms. Wurts has also completed numerous feasibility studies concerning the development of
film studio soundstages. Her experience includes projects in Canada, Massachusetts,
California and Arizona. These studies involved research contact with state and local film
commissions, film production facilities, as well as the investigation of both global and
domestic production trends. Additionally, last Spring she oversaw a feasibility study for a
proposed national arthouse cinema development in Palm Desert, California.
Prior to joining ERA, Ms. Wurts worked for three years in the legal department of Warner
Bros. International Theatres, a division involved in building state-of-the-art multiplexes in
foreign territories, where she analyzed proposed theater sites, as well as tracking costs
involved. During her three years at Warner Bros., Ms. Wurts gained a broad understanding
of both domestic and international trends associated with multiplex development.
Prior to her work with Warner Bros., Ms. Wurts worked for over four years in the
International Division of Jon Douglas Company, an L.A.-based real estate firm, where she
assisted the Executive Director of the division in marketing of residential and commercial
properties to foreign investors.
Ms. Wurts holds a Masters degree in International Management from the American Graduate
School (Thunderbird) in Phoenix, Arizona. She also holds a Bachelor's degree from Pomona
College.
• AU NOA7. 3 . 3 .
STAFF REPORT
To: Honorable Mayor and City Council
From: George Kaenel, Interim Finance Director
Subj: Appraisal Services for CFD 2
Date: September 2, 1999
Recommendation: It is recommended that the City Council appoint Gary L. Vogt and Associates
to appraise the vacant land in County Services District No. 2
Background: The City Council has directed staff to obtain an appraisal of the vacant land in CFD
2 prior to approving the work out agreement with Elliot Associates. Suzanne Harrell of Rod
Gunn and Associates sent a request for proposal to appraiser firms with which they were familiar.
Three firms responded to that RFP. A copy of each firm's proposal is presented herewith.
All three firms appear to have the qualifications to perform the appraisal. Therefore, staff is
recommending that the firm with the lowest fee be given the appointment..
GARY L. VOGT AND ASSOCIATES
REAL ESTATE APPRAISERS AND CONSULTANTS
31877 DEL OBISPO STREET,SUITE 202
SAN JUAN CAPISTRANO,CA 92675
TELEPHONE: (949)489-8029 GARY L.VOGT,MAI
FACSIMILE: (949)489-8028 MEMBER,APPRAISAL INSTITUTE
E-MAIL:gvogt@mindspring.com CERTIFIED GENERAL NO.AG007272
August 19, 1999
Mr. George Kaenel, Finance Director
CITY OF SAN JACINTO
201 E. Main Street
San Jacinto, CA 92583
RE: Proposal for Appraisal Services
±250 Acres of Vacant Land
San Jacinto CFD No. 2
Dear Mr. Kaenel:
In response to a request from Rod Gunn Associates, Inc. , dated August 11, 1999, I have
given consideration to the scope of work involved in preparing an appraisal of the current
market value of approximately 250 acres of vacant land located within the above-referenced
assessment district. It is my understanding that approximately 560 existing homes also
located within San Jacinto CFD No. 2 are excluded from the appraisal assignment.
According to Suzanne Harrell of Rod Gunn Associates, the ±250 acres of vacant land has the
potential to be developed with approximately 1,000 homes and most of the required
infrastructure improvements are in place as a result of the formation and implementation of
CFD No. 2. Although the land is currently vested in approximately seven different owners, the
CFD bonds are in default and it is anticipated that the entire property will be acquired by the
bondholder through foreclosure and developed as a single, unified project. I understand that
feasibility and marketing studies have been completed for the project by the Meyers Group.
The purpose of the appraisal is to to estimate the "as is" market value of the land as well the
aggregate market value of the land if improved to a finished lot condition. The appraisal will be
used to assist the City in pursuing a workout with the current bondholder and it is my
understanding that the appraisal report will not be included within any public offering.
My fee for preparation of the appraisal report as outlined above is $9,500. A retainer of $4,750
would be due upon commencement of the assignment with the balance invoiced upon delivery
of five copies of the completed appraisal report. I can complete the appraisal report as
outlined above within approximately 45 days after receipt of the following items:
• Written authorization to proceed
• Retainer fee of $4,750
II _
•
Mr. George Kaenel
August 19, 1999
Page two
• Copies of Meyers Group Feasibility and Marketing Studies
• Copies of any approved or pending tentative maps, final maps, or other existing
land use entitlement documents
• Engineering estimate of cost to improve property to finished lot condition
• Current title report(s), if available
A copy of my professional resume together with a partial list of recent appraisal assignments
and client references are enclosed for your information.
I appreciate the opportunity to be considered for this appraisal assignment. Please call if you
have any questions or if additional information is needed.
Sincerely:
�l1
Gary L. Vogt, MAI
Enclosures
cc: Suzanne Harrell
Rod Gunn Associates
QUALIFICATIONS OF GARY L. VOGT, MAI
PROFESSIONAL BACKGROUND:
1970-1975: Real Property Agent and Staff Appraiser, Orange County Department
of Real Property Services, Santa Ana, CA
1975-1982: Real Estate Appraiser and Consultant, George Hamilton Jones, Inc.,
Newport Beach, CA
1982-Present: Self-employed Real Estate Appraiser and Consultant,
Gary L. Vogt and Associates
31877 Del Obispo Street, Suite 202, San Juan Capistrano, CA
PROFESSIONAL ACCREDITATIONS AND AFFILIATIONS:
Member-Appraisal Institute (Certificate No. 5842):
National Experience Examiner, 1989-91
Board of Directors, Southern California Chapter, 1992-94
Assistant Regional Member, Ethics Administration Division, 1994-96
Certified General Appraiser, State of California (Certificate No. AG007272)
Member- International Right of Way Association
EDUCATION:
B.A., Economics, California State University, Los Angeles
Advanced Real Estate and Appraisal Study from American Institute of Real Estates Appraisers,
Society of Real Estate Appraisers, Appraisal Institute, and International Right of Way Association
Instructor, Real Estate Appraisal, Coastline Community College
COURT QUALIFICATIONS;
Qualified as expert witness for purposes of real estate valuation in Orange County Superior Court
and Federal Bankruptcy Court, Santa Ana, CA. Also appointed to numerous formal and informal
arbitration panels.
SCOPE OF WORK EXPERIENCE:
Work experience is concentrated primarily in Southern California but also includes assignments in
Central and Northern California and Hawaii.
Experience includes valuation of most categories of real property including office buildings, industrial
buildings, apartments, shopping centers, condominium projects, marinas, mobile home parks, single
family residential, residential subdivision land, commercial land, industrial land, apartment land,
master planned communities, wetlands, ranch land, large undeveloped acreage parcels, and special
use properties. Real property interests appraised include fee simple, leased fee, leasehold,
fractional interests, fair rental value, partial acquisitions, temporary easements, utility and drainage
easements, sub-surface tunnel easements, slope easements, and rights of way.
REPRESENTATIVE CLIENTS:
Financial Institutions:
Home Savings of America Bank of America
Merrill Lynch Capital Markets Wells Fargo Bank
Downey Savings and Loan First Interstate Bank
Manufactures Bank PaineWebber Inc.
Corporations / Developers:
Mission Viejo Company Kaiser Permanente
The Irvine Company Wamiington Homes
William Lyon Company Shea Homes
Standard Pacific Corporation Santa Margarita Company
Van Daele Development Aetna Realty Advisors
M. H. Sherman Company O'Hill Partners
Manor Care, Inc. Carson Estate Company
AirTouch Cellular Preferred Property Development
Government/ Public Agencies:
Laguna Beach School District City of Riverside
Saddleback School District Solano Beach School District
Southern California Edison Company Metropolitan Water District of So. Calif.
Orange County Water District City of San Juan Capistrano
City of Newport Beach County of Orange
University of California City of San Clemente
Hemet Unified School District Resolution Trust Corporation
Federal Deposit Insurance Corporation City of Costa Mesa
City of Irvine City of Perris
City of Corona Rancho Santiago College
City of Tustin County of Los Angeles
City of Santa Clarita Moreno Valley School District
Orange County Transit District City of Brea
City of Orange Riverside County Flood Control District
Etiwanda School District Transportation Corridor Agencies
City of Fullerton Community Redevelopment Agency, City of LA
City of West Covina U. S. Department of the Navy
Law Firms:
Best, Best and Krieger, Riverside
Paul, Hastings, Janofsky &Walker, Costa Mesa
Penney and Penney, Newport Beach
Harwood, Adkinson and Bernauer, Newport Beach
Turner and Mulcare, San Mateo
Stern, Neubauer, Greenwald & Pauly, Santa Monica
Thompson and Colgate, Riverside
Urland, Morello, Dunn and Maynard, Santa Ana
Rutter, O'Sullivan, Greene and Hobbs, Los Angeles
Call, Clayton and Jensen, Newport Beach
Pallier, Tyler, Wiener, Wilhelm and Caldron, Irvine
Wise, Wiezorek, Timmons and Wise, Long Beach
Oliver, Barr and Vose, Los Angeles
Phelps, Schwarz & Phelps, Pasadena
Drummy, King, White and Gire, Costa Mesa
Fulbright &Jaworski, Los Angeles
PARTIAL LIST OF CLIENT REFERENCES
AND ASSIGNMENT DESCRIPTIONS
GARY L. VOGT &ASSOCIATES
(Page 1 of 2)
Client/Contact Description of Assignment
The Irvine Company Joint appraisal for Irvine Company and City of Laguna Beach involving±2,000
Daniel Tonini acre Laguna Laurel Planned Community located in Laguna Canyon
(949)720-2884
Various appraisals of all or parts of±3,000 acre Newport Coast master planned
Community for County of Orange Assessment District 88-1.
Appraisal of±300 acre Newport Ridge master planned community for County of
Orange Assessment District 92-1.
Riverside County Flood Control Valuation of partial takings from ten ownerships impacted by widening and
Cindy Pank channelization of San Jacinto River between Perris and San Jacinto.
(909)275-1281
Valuation of partial takings from seven ownerships for channelization of flood
Control channel in City of Moreno Valley
Southern California Edison Estimate of market rental value for 134 acres of land surrounding San Onofre
Gary Peck Nuclear Power Plant. Done jointly for SCE and Department of the Navy.
(310)491-2949
Valuation of±200 acres of residentially zoned land surrounding Edison's Serrano
Substation in City of Orange.
Transportation Corridor Valuation of partial taking from±460 acre property for San Joaquin Hills
Agency Transportation Corridor
Gene Foster
(714)557-3294 Valuation of partial taking from Costco retail store for San Joaquin Hills
Transportation Corridor
Orange County Water District Valuation of well sites and associated easements from industrial, open space,
Donald Jackson And El Toro Marine Corps Air Station properties in or near City of Irvine
(714)378-3265
Valuation of partial taking required by City of Anaheim for access to Anaheim
Pond Arena.
City of Irvine Valuation of±400 acre Northwood 5 master planned community for Assessment
Richard Monroe District No. 95-12
(949) 724-6406
Valuation of±750 acre Lower Peters Canyon Planned Community for Assessment
District No. 97-16
Valuation of±437 acre Oak Creek Planned Community for Assessment District No.
95-12
City of Corona Appraisal of three residential acreage parcels located in City of Corona for
C/O Kendall MacVey, Esq. Resolution of park fee dispute
(909)686-1450
City of Newport Beach Appraisal of twelve vacant properties for formation of Special Improvement
Dennis Danner District 95-1.
(949)644-3123
•
PARTIAL LIST OF CLIENT REFERENCES
AND ASSIGNMENT DESCRIPTIONS
GARY L. VOGT &ASSOCIATES
(Page 2 of 2)
Client/Contact Description of Assignment
City of Riverside Valuation of two restaurants and vacant residential land as part of the University
Lisa Hjulberg Village Redevelopment Project
(909) 782-5343
Valuation of full and partial takings from twelve commercial ownerships for
Arlington Avenue Underpass project.
Valuation of four utility easements over operating Union Pacific Railroad right of way
City of Fullerton Review Appraisal for Highland Avenue railroad underpass project involving
Stan Reiner 15 ownerships
(714) 738-6845
Etiwanda School District Valuation of±200 acre California Landings master planned community for
Gene Newton Formation of Community Facilities District No. 4
(909) 899-2451
County of Orange Valuation of partial takings from thirteen improved office properties on Campus
Real Estate Division Drive in Newport Beach and Irvine
William E. Price
Neal Warren Valuation of partial takings from seven improved retail properties on Street of the
(714) 834-2594 Golden Lantern in Laguna Niguel
Valuation of encroachments onto state tidelands from twenty-eight residential
properties on Harbor Island in Newport Bay
Metropolitan Water District Valuation of partial takings from eight industrial and residential properties for
of Southern California expansion of MWD's Chemical Unloading Facility in Perris, Riverside County.
Paul Norlen, MAI
(213)217-7665 Valuation of five partial takings and three full takes for relocation and reconstruction
Jean Kinney of Newport Road and Salt Creek in City of Hemet and Winchester areas.
(213)217-7656
Sherman Horn Valuation of deep tunnel easements and temporary surface construction easements
(213)217-7765 from four ownerships near City of Redlands.
City of Brea Appraisal and court testimony involving full take of one acre commercial site located
CIO Connie Sandifer, Esq. adjacent to Brea Mall.
(213)621-2000
Various Owners Appraisal and court testimony involving valuation of 38 residential lots for Diamond
Ron Mulcare, Esq. -Crestview inverse condemnation case in City of Laguna Beach
(415) 573-7677
City of San Clemente Valuation of±535 acre portion of Laing Forster Ranch for Assessment District No.
David Lund 98-1
(949) 361-8391
Wells Fargo Bank Valuation of La Habra West, a 290 acre master planned community located in
Pat Coady City of La Habra.
(949)251-4499
•
A :\M F: Ft
C
^+L,i
FirstAmerican Tax-Valuation
Real Estate Appraisal/Commercial Division
WILLIAM V. SHREWSBURY MAI, CAE
Sr.Vice President
August 11, 1999
Mr. George Kaenel
Finance Director
City of San Jacinto
201 Main Street
San Jacinto, CA 92583
Proposal for Appraisal Services Regarding: CFD No.2 within the City of San Jacinto, California.
Specifics as to the location of the parcel are not
known to the appraiser as of this date.
Dear Mr. Kaenel:
We are pleased to submit this proposal for a real estate appraisal on approximately 250 acres of land
located in the City of San Jacinto, California.
I. Purpose:
It is our understanding that the assignment will be to provide an opinion of the current "as is,"
market value of the fee simple interest of the 250 acre parcel.
II. Function:
The function of this report is to value the subject real estate for issuance of Special Tax Bonds
pursuant to an existing Community Facilities District.
III. Scope and Description of Assignment:
First American Tax Valuation proposes to conduct the necessary investigations and analyses
leading to the preparation of a fully documented narrative appraisal report which will conform
to the standards established by the Appraisal Institute in its Code of Professional Ethics and
Standards of the Appraisal Institute, as well as the standards set out by the Appraisal Foundation,
and under the Minimum Appraisal Standards, Section 323.1, Title 11, the Federal Financial
Institution Reform, Recovery and Enforcement Act of 1989. We will also provide a summary
appraisal report which will be included in the bond offering.
3822 Campus Drive • Suite 227 • Newport Beach, CA 92660-2713
(949) 476-8277 • Fax (949) 476-8633
n,
F b
The report will consider two traditional approaches to value: Sales Comparison, and the
Discounted Cash Flow Analysis for the absorption period involved. My estimated "as is" value
will assume the bonds are in place, and funded.
IV. Providers of Service:
Valuation services will be conducted by MAI designated members of the Appraisal Institute and
State Certified Appraisers. William Shrewsbury, MAI, and Terry Toman, MAI, will participate
in all aspects of the appraisal process.
V. Fee, Delivery Schedule and Number of Reports:
A. The fee for completing this assignment will not exceed $18,750. We request payment be
made in three installments: upon signing the agreement, $6,250; when the draft is
delivered, $6,250; and upon the final report, $6,250 for the full report. We will provide
ten copies of the report. Any additional reports will be at a cost of$50.00 each.
B.
VI. Requested Information Pertaining to the Property:
Information which is needed in order to begin the assignment is set forth below:
• Working drawings of the proposed improvements.
• A copy of current or the most recent preliminary title report or title policy.
• Copies of current land development costs necessary to improve the proposed development to what
is assumed to be the highest and best use.
• Copies of any marketing or absorption studies that have been competed.
VII. Changes to the Contract:
If the scope of this assignment substantially changes after the engagement of the contract, the fee
may need to be modified. We reserve the right to make this adjustment.
VIII. Statement of Qualifications:
First American Tax Valuation has been involved in many Mello-Roos Bond developments some
of which are:
1. County of Orange Foothill Corridor, reference Mr. Bill Price, (714) 834-2571
2. Los Angeles County, reference Mr. Abel Morales, (818) 458-7078
3. City of Lancaster
4. City of Perris
5. City of Carlsbad, reference Ms. Cheryl Allen, (760) 434-2800
6. County of Riverside
7. City of Indio
8. County of San Bernardino
AMI!121
� y
We will furnish you with a statement that the City of San Jacinto is authorized to use our summary report
in the preliminary and final Official Statement, should it be necessary, along with other statements which
may be required.
Once we receive your authorization to proceed, we will initiate this assignment. Please sign the enclosed
copy and return it if you concur with these terms. Should you have any further questions, please don't
hesitate to call.
Cordially,
Senior Vice President
Date: Authorization:
cc: Ms. Suzanne Q. Harrell
L
Stephen G. White, MAI
Real Estate Appraiser
»�cu : 1370 N. BREA BLVD., SUITE 205 • FULLERTON, CALIFORNIA 92835-4128
(714) 738-1595 • FAX (714) 738-4371
August 23, 1999
City of San Jacinto Re: Proposal for Appraisal of
201 E. Main St. Community Facilities District
San Jacinto, CA 92583 No. 2, San Jacinto
Attn: George Kaenel
Finance Director
Dear Mr. Kaenel:
In accordance with the request of Suzanne Q. Harrell at Rod Gunn
Associates, Inc. , I have given consideration to the above-
referenced District for the purpose of estimating the fee and
timing to complete an appraisal thereof . Per Ms . Harrell, the
District currently contains 560 homes and ±250 acres of vacant land
with development potential of 1, 000 homes .
Due to a possible acquisition of the vacant land by the bondholder
who is also a developer, the City desires to have their own
appraisal done of the vacant land within the District. The purpose
of the appraisal is for internal decision-making at the City, and
not for a bond offering.
Because of the overlap of my vacation and Ms. Harrell' s vacation,
I have not been able to discuss the proposed appraisal with her.
However, based on her letter dated August 11, 1999, I have arrived
at the following conclusions :
SCOPE OF ASSIGNMENT: Perform a Complete Appraisal of the
undeveloped residential land within the District in order to
estimate the current market value of the land in its as is
condition, and in a finished lot condition. Reportedly there are
expired tentative tract maps on this vacant land. Thus, this would
be the as is condition, and finished lot condition would reflect a
final tract map.
I would need direction as to whether remaining needed
infrastructure would be financed through bonds, or would be
reflected as part of the costs to get the land from its as is
condition to finished lots . I assume that these estimated costs
would be provided to the appraiser.
In addition, I would need direction as to whether the value
estimate is to be as one bulk 250-acre parcel, or as the existing
7 separate ownerships. The appraisal would utilize the Sales
Comparison Approach, and also a discounted cash flow analysis if
the value is to be as a single bulk parcel . The discounted cash
� II
MR. GEORGE KAENEL
AUGUST 23, 1999
PAGE 2
flow analysis would reflecting retail sales of the land to
residential builders over time, less deductions for the estimated
remaining land development costs, and then discounted to a present
value indication. The absorption would be based on the study
prepared by the Meyers Group.
The appraisal would be submitted in a Summary Appraisal Report
which would include a summary of the pertinent data and analysis .
Four copies of the report would be provided unless you indicate
that more are needed.
APPRAISAL FEE: I have estimated a not to exceed fee of $15, 000; the
actual fee at or under this amount will be based on my time at $125
per hour and associate time at $65 per hour. A retainer of $7, 500
is requested.
TIMING: The appraisal can be completed within 5 to 6 weeks from
receipt of written authorization and retainer.
NEEDED INFORMATION: I am assuming that the study prepared by the
Meyers Group will be provided, as well as all engineering and land
development cost information to take the land from its current
condition to finished residential lots . I also assume that
information on the expired tentative tract maps can be obtained
from the City.
DESCRIPTION OF FIRM/EXPERIENCE: My firm consists of myself and my
associate, John Hockman, who works with me in this office and
completes much of the research work. I would be the contact person
for this appraisal assignment.
The bulk of my appraisal work is in Orange and Riverside Counties,
and much of my work has been on undeveloped residential land. I
have also had much experience in appraisals for Community
Facilities Districts and Assessment Districts . My recent
appraisals on this type of assignment are as follows:
CFD AD No. Type of Proje
ct� vP Date
County of Riverside AD 159 Undeveloped & developed 1999
res. , comm'l & ind'l
Capistrano Unified School District CFD 98-2 Ladera Ranch; undev. res. 1999
& comm'l land
Lake Elsinore Unified School District CFD 88-1 Undeveloped res. land; 1998
homes under const. & comp.
Capistrano Unified School District CFD 92-1 Las Flores; undevel. land 1998
& completed res. & comm'l
Poway Unified School District CFD 1 Primarily improved and 1997
unimproved residential
i ,
MR. GEORGE KAENEL
AUGUST 23 , 1999
PAGE 3
Capistrano Unified School District CFD 92-1, Undeveloped residential 1996
95-1 & commercial land; homes
under construction
Capistrano Unified School District CFD 87-1 Same as above plus devel- 1996
oped apartments & comm'l
Lake Elsinore Unified School District CFD 88-1 Same as above 1996
Three specific references from these CFD/AD projects are as
follows :
Mr. David Doomey @ Capistrano Unified School District; 32972 Calle Perfecto,
San Juan Capistrano, CA 92675; (714) 489-7264
Mr. Tony Carstens @ County of Riverside; 4080 Lemon St. , 12th Floor,
Riverside, CA 92501-3651; (909) 955-1138
Kenn Young @ Lake Elsinore Unified School District; 545 Chaney St. , Lake
Elsinore, CA 92530; (909) 245-8297
Attached are a copy of my qualifications which provide additional
information for your review.
If the above conditions meet with your approval, you can sign and
return a copy of this letter, or provide other written
authorization referencing this letter and the terms herein,
together with the retainer and needed information or the contacts
to obtain such. If you have any questions, please give me a call .
Very truly yours,
jr91.4 4Vai
Stephen G. White, MAI
(State Certified General Real
Estate Appraiser No. AG013311)
Signature
Date
SGW: sw
w/attachment
cc: Ms . Suzanne Q. Harrell
QUALIFICATIONS
OF
STEPHEN G. WHITE, MAI
PROFESSIONAL EXPERIENCE
Real Estate Appraiser since 1976.
1983 through current date: Self-employed; office located at 1370 N. Brea
Blvd. , Suite 205, Fullerton, CA 92835 (Phone: 714-738-1595)
1976 - 1982: Employed by Cedric A. White, Jr. , MAI, independent appraiser
located in Anaheim.
Real estate appraisals have been completed on most types of properties for
purposes of fair market value, leased fee value, leasehold value, easement
value, partial acquisitions and severance damages.
PROFESSIONAL ORGANIZATIONS
* Member, Appraisal Institute; MAI designation obtained 1985
* Affiliate Member, Pacific West Association of Realtors
LICENSES
Licensed by the State of California as a Certified General Real Estate
Appraiser; OREA ID No. AG013311; valid through September 22, 2000.
EDUCATION
B.A. Economics & Business, Westmont College, Santa Barbara (1976)
Appraisal Institute Courses:
Basic Appraisal Principles, Methods and Techniques
Capitalization Theory and Techniques
Urban Properties
Litigation Valuation
Standards of Professional Appraisal Practice
Numerous seminars and continuing education on various appraisal
subjects, including valuation of easements and leased fee interests,
litigation, the money market and its impact on real estate, and
standards of professional appraisal practice.
COURT/TESTIMONY EXPERIENCE
Qualified as an expert witness in the Superior Courts of Orange, Los
Angeles, Riverside and San Bernardino Counties; also before the Assessment
Appeals Boards of Orange and Los Angeles Counties.
TYPES OF PROPERTY APPRAISED
Residential: vacant lots, acreage and subdivisions; single family
residences, condominiums, townhomes and apartment complexes.
QUALIFICATIONS, PAGE 2
Commercial: vacant lots/acreage; office buildings, retail stores, shopping
centers, restaurants, hotels and motels.
Industrial: vacant lots and acreage; warehouses, manufacturing buildings,
R&D buildings, industrial parks, mini-warehouses.
Special Purpose: mobilehome parks, churches, automobile agencies, medical
buildings, convalescent hospitals, easements, leased fee and
leasehold interests.
CLIENT LIST
Corporations:
Andrews Petroleum Services MCP Foods
British Pacific Properties Merrill Lynch Relocation
BSI Consultants Orangeland RV Park
Crown Central Petroleum Pacific Scientific
Eastman Kodak Company Penhall International
Firestone Building Materials Pic 'N Save Stores
Foodmaker Realty Corp. Sargent-Fletcher Co.
Greyhound Lines Shell-Western E&P
Holiday Rambler Corp. Southern Distributors Corp.
International Baking Co. Southern California Edison
Johnson Controls The Home Depot
Kampgrounds of America Tooley and Company
La Habra Products, Inc. Wastewater Disposal Co.
Developers:
Brighton Homes Mission Viejo Co.
Citation Builders Premier Homes
Davison-Ferguson Investment Devel. Presley Homes
D.T. Smith Homes Rockefeller & Associates
Irvine Company Taylor Woodrow Homes
Kathryn Thompson Developers Unocal Land & Development
Mark Taylor, Inc.
Law Firms:
Baldikoski, Klotz & Dragonette Long, David M.
Best, Best & Krieger Nossaman, Guthner, Knox & Elliott
Bowie, Arneson, Kadi, Wiles & Giannone Oliver, Barr & Vose
Bradshaw, John 011estad, Freedman & Taylor
Bye, Hatcher & Piggott Palmieri, Tyler, Wiener, Wilhelm &
Callahan, McCune & Willis Waldron
Cooksey, Coleman & Howard Paul, Hastings, Jonofsky & Walker
Hamilton & Samuels Piggott, George B.
Horgan, Rosen, Beckham & Coren Pothier, Rose
Kent, John Rosenthal & Zimmerman
Kirkland & Ellis Rutan & Tucker
Lathan & Watkins Sikora & Price, Inc.
McKee, Charles C. Smith & Politiski
Mosich, Nicholas J. Williams, Gerold G.
Lewin, Robert S. Woodruff, Spradlin & Smart
Yates, Sealy M.
Financial Institutions:
Barclays Bank San Clemente Savings & Loan
Chino Valley Bank United Calif. Savings Bank
QUALIFICATIONS, PAGE 3
Continental Bank National Credit Union Admin
First Interstate Mortgage First Wisconsin Bank
Security Pacific Bank Ahmanson Trust Company
Washington Square Capital Sunwest Bank
Cities:
City of Anaheim City of Orange
City of Baldwin Park City of Placentia
City of Buena Park City of Riverside
City of Cypress City of Santa Ana
City of Duarte City of Santa Fe Springs
City of La Habra City of Stanton
City of Laguna Beach City of Tustin
City of Mission Viejo City of Yorba Linda
Counties:
County of Orange County of Riverside
Other Governmental:
Agua Mansa Industrial Growth Association
El Toro Water District
Federal Deposit Insurance Corporation (FDIC)
Kern County Employees Retirement Association
Metropolitan Water District of So. Calif.
Orange County Water District
Trabuco Canyon Water District
U.S. Postal Service
School Districts:
Anaheim Union High School Dist. Newhall School Dist.
Banning Unified School Dist. Newport-Mesa Unified School Dist.
Capistrano Unified School Dist. Placentia-Yorba Linda Unified Dist.
Castaic Union School Dist. Poway Unified School Dist.
Cypress School Dist. Rialto Unified School Dist.
Fullerton School Dist. Saddleback Unified School Dist.
Garden Grove Unified School Dist. Santa Ana Unified School Dist.
Irvine Unified School Dist. South Orange County Community
Lake Elsinore Unified School Dist. College Dist.
Moreno Valley Unified School Dist. Temple City School Dist.
Churches:
Calvary Church, Santa Ana
Central Baptist Church, Pomona
Christian & Missionary Alliance Church, Santa Ana
Christian Church Foundation
Congregational Church, Fullerton
First Church of the Nazarene, Fullerton
Good Shepherd Lutheran Home
Long Beach First Church of the Nazarene
Lutheran Church, Missouri Synod
Presbytery of Los Ranchos
St. Mark's Lutheran Church, Hacienda Heights
Vineyard Christian Fellowship
Other:
Biola University Garden Grove Boys' Club
Cedars-Sinai Medical Center The Sheepfold
QUALIFICATIONS
OF
JOHN E. HOCKMAN
EXPERIENCE
Associate Real Estate Appraiser 1989-Present
Stephen G. White, MAI
1370 N. Brea Blvd. , Suite 205
Fullerton, CA 92635
Duties : Research comparable sales, rental, and property data;
verify property information by owner and broker interview;
inspect and photograph property; prepare data for report form;
write portions of appraisal report in rough form.
Teacher, Secondary and Adult Education 1985-1988
Montebello Unified School District
123 S. Montebello Blvd.
Montebello, CA
Duties : Conduct classroom activities and instruction for high
school and adult classes .
Construction Worker 1980-1984
Ben Hockman Construction
332 S .E. Walnut St.
Dallas, OR
Duties : Assist in construction of residential, commercial,
and industrial buildings throughout various phases of
construction including concrete and foundation, framing,
roofing, and finishing.
EDUCATION
Appraisal Institute 1991-1993
Courses : lAl - Real Estate Appraisal Principles
lA2 - Basic Valuation Procedures
310 - Basic Income Capitalization
Talbot School of Theology 1984-1987
Biola University
La Mirada, CA
Degree: M.Div. , Biblical Studies
Western Baptist College 1979-1982
Salem, OR
Degree: B. S . , Biblical Studies