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AGENDA
TEMECULA CITY COUNCIL
A REGULAR MEETING
CITY COUNCIL CHAMBERS
43200 BUSINESS PARK DRIVE
JULY 11, 2006 -7:00 PM
At approximately 9:45 P.M., the City Council will determine which of the remaining agenda items can
be considered and acted upon prior to 10:00 P.M. and may continue all other items on which
additional time is required until a future meeting. All meetings are scheduled to end at 10:00 P.M.
6:00 P.M. - Closed Session of the City Council pursuant to Government Code
Section:
1. Conference with City Attorney and legal counsel pursuant to Government
Code Section 54956.9(b)(1) with respect to one matter of potential litigation.
With respect to such matter, the City Attorney has determined that a point has
been reached where there is a significant exposure to litigation involving the
City based on existing facts and circumstances and the City will decide
whether to initiate litigation.
Public Information concerning existing litigation between the City and various
parties may be acquired by reviewing the public documents held by the City
Clerk.
Next in Order:
Ordinance: 06-09
Resolution: 06-60
CALL TO ORDER:
Mayor Ron Roberts
Prelude Music:
Great Oak Woodwind Ensemble
Invocation:
Pastor Treadway of Rancho Community Church
Flag Salute:
Council Member Comerchero
ROLL CALL:
Comerchero, Edwards, Naggar, Washington, Roberts
PRESENTA TIONS/PROCLAMA TIONS
Jazz Month Proclamation
Worldwide Paceant Dav Proclamation
PUBLIC COMMENTS
A total of 30 minutes is provided so members of the public may address the Council on
items that appear within the Consent Calendar or ones that are not listed on the agenda.
Speakers are limited to two (2) minutes each. If you desire to speak to the Council on
an item which is listed on the Consent Calendar or a matter not listed on the agenda, a
pink "Request to Speak" form should be filled out and filed with the City Clerk.
When you are called to speak, please come forward and state your name for the record.
For all Public Hearing or Council Business matters on the agenda, a "Request to Speak"
form must be filed with the City Clerk prior to the Council addressing that item. There is
a five minute (5) time limit for individual speakers.
CITY COUNCIL REPORTS
Reports by the members of the City Council on matters not on the agenda will be made at
this time. A total, not to exceed, ten (10) minutes will be devoted to these reports.
CONSENT CALENDAR
NOTICE TO THE PUBLIC
All matters listed under Consent Calendar are considered to be routine and all will be
enacted by one roll call vote. There will be no discussion of these items unless Members
of the City Council request specific items be removed from the Consent Calendar for
separate action.
1 Standard Ordinance and Resolution Adootion Procedure
RECOMMENDATION:
1 .1 Motion to waive the reading of the text of all ordinances and resolutions included in
the agenda.
2 Resolution aoorovinc List of Demands
RECOMMENDATION:
2.1 Adopt a resolution entitled:
2
RESOLUTION NO. 06-_
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA,
CALIFORNIA, ALLOWING CERTAIN CLAIMS AND DEMANDS AS SET FORTH
IN EXHIBIT A
3 Citv Treasurer's Reoort as of Mav 31. 2006
RECOMMENDATION:
3.1 That the City Council receive and file the City Treasurer's Report as of May 31,
2006.
4 Grant of Easement to Rancho California Water District for the Installation of a Groundwater
Monitorinc Well within Pala Communitv Park
RECOMMENDATION:
4.1 Adopt a resolution entitled:
RESOLUTION NO. 06-_
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA
APPROVING A GRANT OF EASEMENT WHEREBY CITY GRANTS TO RANCHO
CALIFORNIA WATER DISTRICT AN EASEMENT FOR RIGHT OF ACCESS TO A
PROPOSED GROUNDWATER MONITORING WELL AT PALA COMMUNITY
PARK
4.2 Direct City Clerk to forward the approved Grant of Easement to Rancho California
Water District for their acceptance and recordation.
5 Aooroval of Citv/Countv Acreement for Imorovements to Butterfield Stace Road
RECOMMENDATION:
5.1 Approve the City County Agreement for the Widening of and Improvements to
Butterfield Stage Road and authorize the Mayor to execute the Agreement.
6 Aoorove a fourth amendment for olan review services and a new acreement for FY
2006/2007~
RECOMMENDATION:
6.1 Approve a fourth amendment to the agreement for Consulting Services with Esgil
Corporation for Plan Check Services which includes an additional appropriation in
the amount of $82,500 to complete Fiscal Year 2005/2006;
6.2 Approve an agreement for Consulting Services with Esgil Corporation to provide
Plan Check Services for Fiscal Year 2006/2007 in the amount of $375,000.
3
7 General Maintenance Exoenditure with Quaid Temecula Harlev-Davidson
RECOMMENDATION:
7.1 Approve the expenditure of $7,000 in FY 05/06 with Quaid Temecula Harley-
Davidson for repair and maintenance of Police motorcycles;
7.2 Approve an annual expenditure of $35,000.00 plus a 10% contingency in FY 06/07
with Quaid Temecula Harley-Davidson for repair and maintenance of Police
motorcycles.
8 Grant of Easement to Rancho California Water District for the Puroose of Correctina a
Previouslv Recorded Easement located within Pala Communitv Park
RECOMMENDATION:
8.1 Adopt a resolution entitled:
RESOLUTION NO. 06-_
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA
APPROVING A GRANT OF EASEMENT TO RANCHO CALIFORNIA WATER
DISTRICT FOR THE PURPOSE OF CORRECTING A PREVIOUSLY RECORDED
EASEMENT LOCATED WITHIN PALA COMMUNITY PARK
8.2 Direct City Clerk to forward the approved Grant of Easement to Rancho California
Water District for their acceptance and recordation.
9 First Amendment to the Aareement with the Friends of the Children's Museum
RECOMMENDATION:
9.1 Approve the First Amendment to the Agreement between the City of Temecula and
the Friends of the Children's Museum for the operation of the Children's Museum
gift shop;
9.2 Accept certain in-kind services as payment in full of the license fee obligation for the
Gift Shop.
TEMECULA COMMUNITY SERVICES DISTRICT MEETING
CSD PUBLIC COMMENTS
A total of 15 minutes is provided so members of the public may address the Board of
Directors on items that are not listed on the agenda or on the Consent Calendar.
Speakers are limited to two (2) minutes each. If you decide to speak to the Board of
Directors on an item not on the agenda or on the Consent Calendar, a pink "Request to
Speak" form should be filled out and filed with the City Clerk.
4
When you are called to speak, please come forward and state your name for the record.
For all other agenda items, a "Request to Speak" form must be filed with the City Clerk
Prior to the Board of Directors addressing that item. There is a five (5) minute time limit
for individual speakers.
Anyone wishing to address the Board of Directors should present a completed pink
"Request to Speak" form to the City Clerk. When you are called to speak, please come
forward and state your name and address for the record.
CSD CONSENT CALENDAR
10 Minutes
RECOMMENDATION:
10.1 Approve the minutes of June 13, 2006;
10.2 Approve the minutes of June 27, 2006.
11 Amendment to Graohic Desian Aareement with Adkins Consultina
RECOMMENDATION:
11 .1 Approve the third Amendment to the Agreement with Adkins Consulting in the
amount of $9,525 for a total agreement amount of $34,425 for the design of a
brochure for the 2007 Temecula Presents season.
CSD GENERAL MANAGERS REPORT
CSD BOARD OF DIRECTORS REPORTS
CSD ADJOURNMENT
TEMECULA REDEVELOPMENT AGENCY MEETING
RDA PUBLIC COMMENTS
A total of 15 minutes is provided so members of the public may address the
Redevelopment Agency on items that are not listed on the agenda or on the Consent
Calendar. Speakers are limited to two (2) minutes each. If you decide to speak to the
Board of Directors on an item not on the agenda or on the Consent Calendar, a pink
"Request to Speak" form should be filled out and filed with the City Clerk.
When you are called to speak, please come forward and state your name for the record.
For all other agenda items, a "Request to Speak" form must be filed with the City Clerk
Prior to the Board of Directors addressing that item. There is a five (5) minute time limit
5
for individual speakers.
Anyone wishing to address the Board of Directors should present a completed pink
"Request to Speak" form to the City Clerk. When you are called to speak, please come
forward and state your name and address for the record.
RDA CONSENT CALENDAR
12 Minutes
RECOMMENDATION:
12.1 Approve the minutes of June 13, 2006;
12.2 Approve the minutes of June 27, 2006.
RDA EXECUTIVE DIRECTORS REPORT
RDA AGENCY MEMBERS REPORTS
RDA ADJOURNMENT
TPFA CONSENT CALENDAR
13 Minutes
RECOMMENDATION:
13.1 Approve the minutes of May 23, 2006.
14 Conversion of Interest Rate on Outstandina Variable Rate Soecial Tax Bonds. and Issuance
of Soecial Tax Refundina Bonds. for Communitv Facilities District No. 01-2 !Harvestonl
RECOMMENDATION:
14.1 Adopt a resolution entitled:
RESOLUTION NO. TPFA 06-_
A RESOLUTION OF THE BOARD OF DRIECTORS OF THE TEMECULA PUBLIC
FINANCING AUTHORITY OF THE CITY OF TEMECULA AUTHORIZING THE
CONVERSION OF VARIABLE RATE BONDS TO FIXED RATE BONDS, AND
THE ISSUANCE OF TWO SERIES OF SPECIAL TAX REFUNDING BONDS
RELATED TO THE TEMECULA PUBLIC FINANCING AUTHORITY COMMUNITY
FACILITIES DISTRICT NO. 01-2 (HARVESTON), APPROVING AND DIRECTING
THE EXECUTION OF A FISCAL AGENT AGREEMENT AND APPROVING
OTHER RELATED DOCUMENTS AND ACTIONS
RECONVENE TEMECULA CITY COUNCIL
6
PUBLIC HEARING
Any person may submit written comments to the City Council before a public hearing or
may appear and be heard in support of or in opposition to the approval of the project(s)
at the time of the hearing. If you challenge any of the project(s) in court, you may be
limited to raising only those issues you or someone else raised at the public hearing or
in written correspondence delivered to the City Clerk at, or prior to, the public hearing.
15 Aooeal of Plannina Commission Denial of Plannina Aoolication No. PA05-0314 for a Minor
Conditional Use Permit and Public Convenience and Necessitv Findinas to Sell Alcohol
within a 16.836 Sauare Foot Retail Facilitv (Rite Aid) to be located within the Rancho
Temecula Town Center at the northeast corner of Winchester Road and Nicolas Road
RECOMMENDATION:
15.1 Adopt a resolution entitled:
RESOLUTION NO. 06-_
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA
DENYING PLANNING APPLICATION NO. PA05-0314, A MINOR CONDITIONAL
USE PERMIT AND PUBLIC CONVENIENCE OR NECESSITY FINDINGS TO
ALLOW FOR THE SALE OF BEER, WINE, AND DISTILLED SPIRITS (TYPE 21
LICENSE, OFF-SALE GENERAL) FROM AN APPROVED 16,836 SQUARE FOOT
COMMERCIAL BUILDING TO BE LOCATED WITHIN THE RANCHO TEMECULA
TOWN CENTER
15.2 Should the City Council wish to approve Planning Application No. PA05-0314, a
Minor Conditional Use Permit and Public Convenience or Necessity Findings, the
City Council should adopt a resolution entitled:
RESOLUTION NO. 06-_
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA
APPROVING PLANNING APPLICATION NO. PA05-0314, A MINOR
CONDITIONAL USE PERMIT AND PUBLIC CONVENIENCE OR NECESSITY
FINDINGS TO ALLOW FOR THE SALE OF BEER, WINE, AND DISTILLED
SPIRITS (TYPE 21 LICENSE, OFF-SALE GENERAL) FROM AN APPROVED
16,836 SQUARE FOOT COMMERCIAL BUILDING TO BE LOCATED WITHIN
THE RANCHO TEMECULA TOWN CENTER
COUNCIL BUSINESS
CITY MANAGER REPORT
CITY ATTORNEY REPORT
ADJOURNMENT
7
Next regular meeting: Tuesday, July 25, 2006 at 5:30 P.M., for a Closed Session with regular
session commencing at 7:00 P.M., in the City Council Chambers, 43200 Business Park Drive,
Temecula, California.
8
PROCLAMA TIONS
AND
PRESENTATIONS
The City of Temecula
PROCLAMATION
WHEREAS, the American Jazz Festival is celebrated every July in the City of Temecula; and
WHEREAS, jazz music, with its roots deeply planted in Gospel and Blues, is one of the very few True American
Art Forms; and
WHEREAS, the American art form of jazz music is celebrated around the world for its intellectual study and
practice of improvisation, cOlmter point, and syncopated rhythms in music; and
WHEREAS, the City of Temecula has put its name on the roadmap of American Jazz Festivals that honors the
history and importance of American Jazz Music as an art form; and
NOW, THEREFORE, I, Ron Roberts, on behalf ofthe City COlmcil of the City of Temecula, hereby proclaim
July, 2006, to be
"Jazz Month"
IN WITNESS WHEREOF, I have hereunto set my
hand and caused the Seal ofthe City of Temecula to
be affixed this lith day of July, 2006.
Ron Roberts, Mayor
Susan W. Jones, MMC, City Clerk
The City of Temecula
PROCLAMATION
WHEREAS, the Worldwide Pageant is an international philanthropic organization dedicated to raising millions
of dollars for charitable organizations arOlmd the world; and
WHEREAS, the Worldwide Pageant has brought international recognition and commerce to the City of T emecula
through its Worldwide Pageant Competition and the Taste of H.O.PE (Helping Other People is Empowering)
flllldraiser; and
WHEREAS, Worldwide Delegates provide service, education, and funding to the City of Temecula and its
community service organizations; and
WHEREAS, hlllldreds of thousands of people have been empowered by the Delegates of the Worldwide Pageant
through their commllllity service projects; and
NOW, THEREFORE, I, Ron Roberts, on behalf ofthe City COllllcil of the City of Temecula, hereby proclaim
July 13, 2006 to be
"Worldwide Pageant Day"
and urge all citizens to join in honoring the Worldwide Pageant Delegates and their service to our commllllity
IN WITNESS WHEREOF, I have hereunto set my
hand and caused the Seal ofthe City of Temecula to
be affixed this lith day of July, 2006.
Ron Roberts, Mayor
Susan W. Jones, MMC, City Clerk
CONSENT CALENDAR
I~-- .
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ITEM NO.1
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ITEM NO.2
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Approvals
City Attorney
Director of Finance
City Manager
~~
/JIL
~
CITY OF TEMECULA
AGENDA REPORT
TO:
City Manager/City Council
FROM:
Genie Roberts, Director of Finance
DATE:
July 11, 2006
SUBJECT:
List of Demands
PREPARED BY:
Pascale Brown, Accounting Manager
Reta Weston, Accounting Specialist
Jada Yonker, Accounting Specialist
RECOMMENDATION:
That the City Council:
1. Adopt a resolution entitled:
RESOLUTION NO. 06-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
TEMECULA, CALIFORNIA, ALLOWING CERTAIN CLAIMS
AND DEMANDS AS SET FORTH IN EXHIBIT A
BACKGROUND: All claims and demands are reported and summarized for review and
approval by the City Council on a routine basis at each City Council meeting. The attached claims
represent the paid claims and demands since the last City Council meeting.
FISCAL IMPACT: All claims and demands were paid from appropriated funds or
authorized resources of the City and have been recorded in accordance with the City's policies and
procedures.
ATTACHMENTS:
Resolution and List of Demands
RESOLUTION NO. 06-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF TEMECULA
THE CITY COUNCil OF THE CITY OF TEMECUlA DOES HEREBY RESOLVE
AS FOllOWS:
Section 1. That the following claims and demands as set forth in Exhibit A, on file in
the office of the City Clerk, have been reviewed by the City Manager's Office, and that the same
are hereby allowed in the amount of $5,627,467.97.
Section 2.
The City Clerk shall certify the adoption of this resolution.
PASSED, APPROVED, AND ADOPTED by the City Council of the City of
Temecula this 11 day of July , 2006.
Ron Roberts, Mayor
ATTEST:
Susan W. Jones, MMC
City Clerk
[SEAL]
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss
CITY OF TEMECULA )
I, Susan W. Jones, MMC, City Clerk of the City of Temecula, do hereby certify that
the foregoing Resolution No. 06- was duly and regularly adopted by the City Council of
the City of Temecula at a meeting thereof held on the 11 day of July, 2006, by the
following vote:
AYES:
COUNCIL MEMBERS:
NOES:
COUNCIL MEMBERS:
ABSENT:
COUNCIL MEMBERS:
ABSTAIN:
COUNCIL MEMBERS:
Susan W. Jones, MMC
City Clerk
'oF TEMECULA
1ST OF DEMANDS
06/22/2006 TOTAL CHECK RUN: $ 1,696,884.04
06/29/2006 TOTAL CHECK RUN: 3,267,849.74
06/22/2006 TOTAL PAYROLL RUN: 209,909.80
06/29/2006 TOTAL PAYROLL RUN: 452,824.39
TOTAL LIST OF DEMANDS FOR 07/11/06 COUNCIL MEETING: $ 5,627,467.97
DISBURSEMENTS BY FUND:
CHECKS:
001 GENERAL FUND $ 664,602.49
140 COMMUNITY DEV BLOCK GRANT 4,773.00
165 RDA LOW/MOD - 20% SET ASIDE 28,104.27
190 TEMECULA COMMUNITY SERVICES DISTRICT 346,534.20
192 TCSD SERVICE LEVEL B 49,527.53
193 TCSD SERVICE LEVEL"C" LANDSCAPE/SLOPE 42,408.22
194 TCSD SERVICE LEVEL D 2,061,526.55
196 TCSD SERVICE LEVEL "L" LAKE PARK MAINT. 8,455.03
210 CAPITAL IMPROVEMENT PROJECTS FUND 1,640,624.23
280 REDEVELOPMENT AGENCY - CIP PROJECT 27,246.90
300 INSURANCE FUND 6,037.09
310 VEHICLES FUND 1,145.08
320 INFORMATION SYSTEMS 54,901.32
330 SUPPORT SERVICES 9,447.04
340 FACILITIES 7,873.13
380 RDA 2002 TABS DEBT SERVICE FUND 2,500.00
460 CFD 88-12 DEBT SERVICE FUND 2,998.70
473 CFD 03-1 CROWNE HILL DEBT SERVICE FUND 2,125.00
475 CFD03-3 WOLF CREEK DEBT SERVICE FUND 2,500.00
476 CFD 03-6 HARVESTON 2 DEBT SERVICE FUND 1,375.00
477 CFD- RORIPAUGH 29.00
$ 4,964,733.78
001 GENERAL FUND $ 448,267.29
165 RDA LOW/MOD - 20% SET ASIDE 11,054.17
190 TEMECULA COMMUNITY SERVICES DISTRICT 136,961.28
192 TCSD SERVICE LEVEL B 272.55
193 TCSD SERVICE LEVEL"C" LANDSCAPE/SLOPE 6,583.21
194 TCSD SERVICE LEVEL D 1,531.42
196 TCSD SERVICE LEVEL "L" LAKE PARK MAINT. 741.17
210 CAPITAL IMPROVEMENT PROJECTS FUND 191.22
280 REDEVELOPMENT AGENCY - CIP PROJECT 5,1 79.40
300 INSURANCE FUND 2,271.47
320 INFORMATION SYSTEMS 32,005.63
330 SUPPORT SERVICES 5,239.94
340
FACILITIES
12,435.44
TOTAL BY FUND:
$
662,734.19
5,627,467.97
apChkLst Final Check List Page: 1
06/22/2006 12:25:41PM CITY OF TEMECULA
Bank: union UNION BANK OF CALIFORNIA
Check # Date Vendor Description Amount Paid Check Total
702 06/22/2006 000283 INSTATAX (IRS) Federal Income Taxes Payment 49,166.97 49,166.97
703 06/22/2006 000444 INSTATAX (EDD) State Income Taxes Payment 14,110.00 14,110.00
108308 06/22/2006 004765 ACTIVE NETWORK INC, THE Refund:Fiona steines:Tumble Jungle 103.25 103.25
108309 06/22/2006 004064 ADELPHIA 6/11-7/10 high speed internet RR 46.95
6/15-7/14 high speed internet stn 92 46.95 93.90
108310 06/22/2006 008552 ADKINS DESIGN CONSULTING C.Museum brochure design & printing 3,762.36
Credit:Overbilled reimbursable expenses -12.77 3,749.59
108311 06/22/2006 009010 ALEXANDER PACIFIC Install new receptacle @ Theater 1,480.00
Install back step lamps@ Fire Stn 84 542.00
Repair vandalized meter pedestal 187.50 2,209.50
108312 06/22/2006 006915 ALLIE'S PARTY EQUIPMENT Equip rental: Painted Parasol 1,400.29
Equip Rental: Reagan Prk Dedication 457.64
Equip Rental: Egg Hunt-Reagan Prk 352.85
Equip Rental: Egg Hunt-Temeku Hills 352.85
Equip Rental: Western Days 313.50 2,877.13
108313 06/22/2006 010075 ALVAREZ, EUGENIA Refund: Picnic Shelter- Margarita 55.00 55.00
108314 06/22/2006 002187 ANIMAL FRIENDS OF THE May 06 Animal control services 12,500.00 12,500.00
VALLEYS
108315 06/22/2006 000101 APPLE ONE INC Temp help PPE 5/27 & 6/3 Gonzales 917.28
Temp help PPE 5/27 Kasparian 655.20
Temp help PPE 5/27 Palpallatoc 543.68
Temp help PPE 6/3 Kasparian 524.16
Temp help PPE 6/3 Palpallatoc 447.04
Temp help PPE 5/27 & 6/3 Jepsen 218.40 3,305.76
108316 06/22/2006 005335 ARTIST TOUCH STUDIO Theater Poster Framing 4,459.85 4,459.85
108317 06/22/2006 003203 ARTISTIC EMBROIDERY summer film/concert promo items 808.13
TCSD staff uniforms shirts/jackets 765.03
Finance Team Building shirts 614.18 2,187.34
108318 06/22/2006 002648 AUTO CLUB OF SOUTHERN Membership:K. Harrington 88552229 47.00 47.00
CALIF
108319 06/22/2006 007065 B & H PHOTO VIDEO INC Sony lamps & wireless projector 2,274.50 2,274.50
Page:1
apChklst Final Check List Page: 2
06/22/2006 12:25:41PM CITY OF TEMECULA
Bank: union UNION BANK OF CALIFORNIA (Continued)
Check # Date Vendor Description Amount Paid Check Total
108320 06/22/2006 004967 B D R ADVERTISING 250 City Sandstone Coasters:Eco Dev 1,203.31 1,203.31
SPECIALTIES
108321 06/22/2006 004040 BIG FOOT GRAPHICS TCSD instructor earnings 511.88
TCSD instructor earnings 420.00 931.88
108322 06/22/2006 005889 BROWN, PASCALE Reimb: Team Bldg supplies 117.98 117.98
108323 06/22/2006 003138 CAL MAT PW patch truck materials 503.35
PW patch truck materials 362.67
PW patch truck materials 333.54
PW patch truck materials 330.80
PW patch truck materials 139.41 1,669.77
108324 06/22/2006 005321 CALIF ASSOC OF CODE Regist:CACEO Conf:10/4-6:SB/MC 590.00 590.00
108325 06/22/2006 009067 CALIF BANK & TRUST Rei Retention Esrw Edge Devel:T.Library 98,425.58 98,425.58
108326 06/22/2006 004248 CALIF DEPT OF JUSTICE- Fingerprinting 10 svcs:PolicelHR 3,608.00
ACCTING
Apr 06 DUI Drug & Alcohol Screening 1,155.00 4,763.00
108327 06/22/2006 004566 CALIF DEPT OF TOXIC Hazardous Waste Manifest Fees:PW 15.00 15.00
SUBSTANCES
108328 06/22/2006 004228 CAMERON WELDING SUPPLY PW mntc crew welding supplies 508.17 508.17
108329 06/22/2006 002534 CATERERS CAFE Refreshments: Prevention Team Building 147.77 147.77
108330 06/22/2006 010071 CHADWICK, KATHLEEN Refund: Teen Summer Day Camp 205.00 205.00
108331 06/22/2006 000137 CHEVRON USA INC City vehicles fuel: Police Dept 1,864.04 1,864.04
108332 06/22/2006 001326 CHULA VISTA, CITY OF Regist: Liebert Cassidy Whitmore Sem. 1,600.00 1,600.00
108333 06/22/2006 005417 CINTAS FIRST AID & SAFETY First aid supplies: City Hall 75.41 75.41
108334 06/22/2006 005410 COLE, TOM Reimb:6/14 Team Bldg mileage 54.38 54.38
108335 06/22/2006 001193 COMP USA INC Computer supplies:HP OfficeJet 430.99
Computer Supplies: label writer 223.51 654.50
108336 06/22/2006 000442 COMPUTER ALERT SYSTEMS Install new alarm battery @ City Hall 88.05
Repair Smoke Detector: C.Museum 80.00 168.05
Page2
apChkLst Final Check List Page: 3
06/22/2006 12:25:41PM CITY OF TEMECULA
Bank: union UNION BANK OF CALIFORNIA (Continued)
Check # Date Vendor Description Amount Paid Check Total
108337 06/22/2006 009978 CPR SAVERS & FIRST AID 15 CERT bags for Citizen Corps Team. 1,186.97 1,186.97
SUPPLY
108338 06/22/2006 006954 CRAFTSMEN PLUMBING & HVAC Install 2 handicap toilets:C.Museum 1,200.00 1,200.00
108339 06/22/2006 009825 DANS ROOFING Res Imp Prgm: Klein, R & V 7,500.00
Res Imp Prgm: Falzon, J & C 630.00 8,130.00
108340 06/22/2006 004222 DIAMONDBACK FIRE & RESCUE, Fire Stn 73 & 93 Amkus Service 1,053.11 1,053.11
INC
108341 06/22/2006 004438 DICK BLICK COMPANY INC Childrens Museum Denim Aprons 99.08 99.08
108342 06/22/2006 002701 DIVERSIFIED RISK May 06 special events premiums 2,115.45 2,115.45
108343 06/22/2006 004192 DOWNS COMMERCIAL FUELING Fuel for City vehicles: PW 1,580.78
INC
Fuel for City vehicles: TCSD 1,434.25
Fuel for City vehicles: PW 627.50
Fuel for City vehicles: Bldg & Safety 468.43
Fuel for City vehicles:Code Enf/Police 393.04
Fuel for City vehicles: CIP 132.89
Fuel for City vehicles:Code Enforce 118.66
Fuel for City vehicles: TCSD 87.47 4,843.02
108344 06/22/2006 010073 DURHAM, DANIEL Refund: Security Despt- TCC 150.00 150.00
108345 06/22/2006 010072 DURISH, PATRICIA Refund: Tiny Tots- Fab 4 & 5's 16.00 16.00
108346 06/22/2006 007319 EAGLE ROAD SERVICE & TIRE New tires for PW mntc patch truck 1,575.92
INC
Tire repairs for PW mntc backhoe 709.43 2,285.35
108347 06/22/2006 002390 EASTERN MUNICIPAL WATER 95366-02 Diego Dr Ldscp 499.69 499.69
DIST
108348 06/22/2006 007530 EASTMAN, WENDY M. TCSD instructor earnings 2,975.00 2,975.00
108349 06/22/2006 005880 EDGE DEVELOPMENT INC. May Prgss Pmt:Public Library 984,255.37
May retention:Public Library -98,425.58 885,829.79
108350 06/22/2006 002283 EMBASSY SUITES HOTEL Htl:CACEO Conf:10/4-6:S.BroVvTl 433.63
Htl:CACEO Conf:1014-6:M.Ching 433.63 867.26
108351 06/22/2006 010074 ESCOBAR, ALBA Refund: Security Depst/Rental-CRC 526.00 526.00
Page:3
apChklst Final Check List Page: 4
06/22/2006 12:25:41PM CITY OF TEMECULA
Bank: union UNION BANK OF CALIFORNIA (Continued)
Check # Date Vendor Description Amount Paid Check Total
108352 06/22/2006 009798 FANENE-GASCON, DL YNN Refund: Special Event Insurance 169.52 169.52
108353 06/22/2006 000165 FEDERAL EXPRESS INC May 31- Jun 5 Express mail services 148.40 148.40
108354 06/22/2006 007623 FOLLOSCO, GRACE Refund: level 4/5 Swim lessons 45.00 45.00
108355 06/22/2006 002982 FRANCHISE TAX BOARD Support Payment Case # 452379267 75.00 75.00
108356 06/22/2006 010082 GARCIA, GRISSEL Refund: Security Depst- TCC 150.00 150.00
108357 06/22/2006 005947 GOLDEN STATE OVERNIGHT Express Mail Service:Fire Prevo 97.18 97.18
108358 06/22/2006 000520 H D L COREN & CONE INC Property Tax Consulting Svcs 6,244.29 6,244.29
108359 06/22/2006 009713 H 0 N COMPANY, THE Police mall storefront furniture 2,459.68 2,459.68
108360 06/22/2006 008906 HUG S, FFA Refund: Security Depst:Reagan Sprts Prk 150.00 150.00
108361 06/22/2006 005311 H20 CERTIFIED POOL WATER CRCfTES May pool svcs 1,700.00 1,700.00
SPCL.
108362 06/22/2006 000186 HANKS HARDWARE INC Hardware supplies: Theater 1,029.28
Hardware supplies: PW St. Mntc 581.40
Hardware supplies: Fire stn/Medics 324.95
Hardware supplies: Parks 233.39
Hardware supplies: Bldg & Safety 125.69
Hardware supplies: C.Museum 114.02
Hardware supplies:Fire Stn/Med. 82.37
Hardware supplies: T.Museum 50.25
Hardware supplies: Sr. Ctr 3.64
Hardware supplies: City Hall 3.07 2,548.06
108363 06/22/2006 001135 HEALTH POINTE MEDICAL Employee first aid care 72.25 72.25
GROUP INC
108364 06/22/2006 010044 HEALTHY MGT DIABETES Refund: Special Event Insurance 169.52 169.52
EDUCATION
108365 06/22/2006 001013 HINDERUTER DE LLAMAS & 2nd Qtr Sales Tax Consulting svcs 8,647.03 8,647.03
ASSOC
108366 06/22/2006 007792 HINTON, BEVERLY L. TCSD instructor earnings 123.20 123.20
Page:4
apChkLst Final Check List Page: 5
06/22/2006 12:25:41PM CITY OF TEMECULA
Bank: union UNION BANK OF CALIFORNIA (Continued)
Check # Date Vendor Description Amount Paid Check Total
108367 06/22/2006 003198 HOME DEPOT, THE Trailer wI Double Doors: Police Dept 2,369.42
Hardware supplies: Parks 158.60
Hardware supplies: Parks 63.53
Hardware supplies: Parks 32.14
Hardware supplies: Parks 29.72 2,653.41
108368 06/22/2006 001517 HORIZON HEALTH June 06 EE Assistance Prgm 803.70 803.70
108369 06/22/2006 009979 I P INTEGRATION INC Video Surveillance Sys:Birdsall Sprt Prk 20,407.80 20,407.80
108370 06/22/2006 004406 IGOE & COMPANY INC June flex benefit plan pmt 308.25 308.25
108371 06/22/2006 009135 IMPACT MARKETING & DESIGN Theater staff shirts/jackets wllogo 1,725.62
INC
Theater staff shirts/jackets wllogo 760.20 2,485.82
108372 06/22/2006 002726 INLAND EMPIRE BUSINESS 1 yr subscription: Eco Devel 24.00 24.00
JOURNAL
108373 06/22/2006 009693 INLAND VALLEY CLASSICAL Ticket sales:Cinderella:6/5-6 & 9-10 8,234.88 8,234.88
BALLET
108374 06/22/2006 001407 INTER VALLEY POOL SUPPLY Pool sanitizing chemicals 233.55
INC
Pool sanitizing chemicals 187.22 420.77
108375 06/22/2006 009393 J M DIAZ INC Apr Design Svcs:Pechanga Prkwy Ph II 1,867.80
Apr design:Wolf Crk Sprts Cmplx 931.23 2,799.03
108376 06/22/2006 008358 JAGUSCH, M.D., CHRISTIAN R. AED Medical Direction for 17 units 464.10 464.10
108377 06/22/2006 002789 KIMCO STAFFING SERVICES INC Temp help PPE 5/28 & 6/4 Bagdasarian 510.40
Temp help PPE 5/28 Banda 127.60 638.00
108378 06/22/2006 008456 KITZEROW, CHERYL Reimb: 6/14 Team Bldg mileage 54.38 54.38
108379 06/22/2006 010008 KNAPP, DEBORA Refund: Cite 49209 review dismissal 325.00 325.00
108380 06/22/2006 001282 KNORR SYSTEMS INC TES pool equip: RaypaklBurner 2,201.68 2,201.68
108381 06/22/2006 007188 LAERDAL MEDICAL CORP. AED training books & supplies:Fire 877.24 877.24
108382 06/22/2006 006744 LAMAR CORPORATION, THE Jun Billboard Lease-Old Town 2,900.00
Jun Billboard Chgout-Old Tovvn 495.00 3,395.00
PageS
apChklst Final Check List Page: 6
06/22/2006 12:25:41PM CITY OF TEMECULA
Bank: union UNION BANK OF CALIFORNIA (Continued)
Check # Date Vendor Description Amount Paid Check Total
108383 06/22/2006 007436 LARICCIA, CYNTHIA Reimb:Mileage Plan Comm packet delivery 125.65 125.65
108384 06/22/2006 003280 LASKIN, JON JAY Theater Ticket sales:Tommy Cash 6/1 425.54 425.54
108385 06/22/2006 006422 LEE, STACY Refund: level 1 Swim lessons 45.00 45.00
108386 06/22/2006 004905 LIEBERT, CASSIDY & WHITMORE May 06 HR legal svcs for TE06G-#01 338.00 338.00
108387 06/22/2006 003726 LIFE ASSIST INC Paramedic Medical Supplies 2,490.35 2,490.35
108388 06/22/2006 006167 LINFIELD SCHOOL Refund: Security Depst: Reagan Spts Prk 150.00 150.00
108389 06/22/2006 009521 LIONEL'S VINYL'S laminate city seal for Police mall 304.93 304.93
108390 06/22/2006 003782 MAIN STREET SIGNS hardwarelsigns:Citywide sign 10,331.89 10,331.89
108391 06/22/2006 001967 MANPOWER TEMPORARY temp help w/e 06/04 Hoof/Dankworth 1,187.64 1,187.64
SERVICES
108392 06/22/2006 000220 MAURICE PRINTERS INC dsgn/printing:City newsletters 7,568.00
printing/High Country magazines:T.Mus. 2,782.11 10,350.11
108393 06/22/2006 000944 MCCAIN TRAFFIC SUPPLY INC traf.sgnl poleslhardware:R.C.Rd Medians 7,351.84
Traffic Signal Program Equip:PW 6,691.28 14,043.12
108394 06/22/2006 009541 MEYER AND ASSOCIATES May dsgn svcs:TCC Expansion 3,790.00 3,790.00
108395 06/22/2006 007210 MIDORI GARDENS Idscp repairs:Harveston lake Park 2,099.80
Irrigation repairs:Veterans Park 4/14/06 459.00
plant flowers Veterans/Sam Hicks Parks 268.80
update maint equip:V.R.Prk 240.00
Irrigation repairs:Veterans Park 4/14/06 210.70 3,278.30
108396 06/22/2006 008091 MILLMORE'S WAA CREW City vehicle detailing svcs:Code Enf 25.00
City vehicle detailing svcs:Code Enf 25.00 50.00
108397 06/22/2006 001384 MINUTEMAN PRESS business cards: E. Papp 43.37 43.37
108398 06/22/2006 001892 MOBILE MODULAR Jun modular bldg rental:Fire Stn 92 832.40 832.40
108399 06/22/2006 003135 MOORE WALLACE printing of gang citation cards:Police 1,085.70 1 ,085.70
Page:6
apChkLst Final Check List Page: 7
06/22/2006 12:25:41PM CITY OF TEMECULA
Bank: union UNION BANK OF CALIFORNIA (Continued)
Check # Date Vendor Description Amount Paid Check Total
108400 06/22/2006 007096 MUSICIANS WORKSHOP Performance Showcase Thtr Settlement 275.87 275.87
108401 06/22/2006 002925 NAPA AUTO PARTS equip parts/supplies for PW Maint 726.01
City vehicle partslsupplies:Fire Stn 84 368.74 1,094.75
108402 06/22/2006 000727 NATIONAL FIRE PROTECTION mbrshp thru 8/31/07:S.Faris 2402378 135.00 135.00
ASSN
108403 06/22/2006 008820 NEIGHBORS NEWSPAPER Jun Street Painting Festival ad: RDA 250.00 250.00
108404 06/22/2006 002898 NIXON EGLI EQUIPMENT repair equip: PW Maint Div 3,036.69 3,036.69
COMPANY
108405 06/22/2006 002139 NORTH COUNTY TIMES May legal ntcs:C.C.lPW/Pln 894.30 894.30
108406 06/22/2006 009570 o C B REPROGRAPHICS Dup.Blueprints:Wolf Creek Fire station 3,011.07
dup.blueprints:E.S.Gardner Exhibit 192.56
dup.blueprints:79S Medians 47.41 3,251.04
108407 06/22/2006 010077 O'BRIEN, ELlANA refund:Parent N Me Swim Lessons 50.00 50.00
108408 06/22/2006 003382 O'GRADY, JAMES B. reimb:PACT Conf6/14/06 9.94 9.94
108409 06/22/2006 003964 OFFICE DEPOT BUSINESS SVS office supplies:Police OT Stn 532.09 532.09
DIV
108410 06/22/2006 002105 OLD TOWN TIRE & SERVICE City Vehicle RepairlMaint Svcs 1,519.29
City Vehicle Repair/Maint SVcs 568.27
City Vehicle Repair/Maint SVcs 57.89
City Vehicle Repair/Maint SVcs 34.27 2,179.72
108411 06/22/2006 009694 ONSTAGE MUSICALS Moll Flanders/Musical Series 6/3-4/06 5,815.68 5,815.68
108412 06/22/2006 001171 ORIENTAL TRADING COMPANY 4th of July supplies:TCSD 21.34 21.34
INC
108413 06/22/2006 002344 OSVOLD, HEIDA Computer Purchase Prgm 1,282.83 1,282.83
108414 06/22/2006 004934 P S MANAGEMENT INC High Hopes Prgm supplies 1,022.14 1,022.14
Page:?
apChkLst Final Check List Page: 8
06/22/2006 12:25:41PM CITY OF TEMECULA
Bank: union UNION BANK OF CALIFORNIA (Continued)
Check # Date Vendor Description Amount Paid Check Total
108415 06/22/2006 003955 PANE CONSULTING SERVICE '06 July 4th Extravaganza supplies 2,466.80
(PCS)
'06 SMART Program T-Shirts 1,980.62
flat table covers w/logo:4th of July 1,459.30
credit:billing error inV# 1313 -9.62 5,897.10
108416 06/22/2006 004538 PAULEY EQUIPMENT COMPANY equipment repair:TCSD Maint. 409.30 409.30
108417 06/22/2006 003218 PELA May plan check svcs: Planning 13,505.00
May Idscp inspections:P.B. Sprts Cmplx 2,700.00
May irrig.inspections: P.B.Sprts Cmplx 270.00 16,475.00
108418 06/22/2006 000249 PETTY CASH Petty Cash Reimbursement 400.65 400.65
108419 06/22/2006 007484 PHILIPS MEDICAL SYSTEMS INC business prgm AED's:Paramedics 6,512.20 6,512.20
108420 06/22/2006 000253 POSTMASTER Express Mail & Postal Svcs 159.25 159.25
108421 06/22/2006 010070 PRECIADO, BENJAMIN refund:Sec.DepositlRoom Rental-CRC 971.00 971.00
108422 06/22/2006 007056 PREMIERE PACKAGING paper supplies for Central Services 1,365.40 1,365.40
INDUSTRIES
108423 06/22/2006 000254 PRESS ENTERPRISE COMPANY May recruitment ads:PlnfTCSD 4,191.99
INC
May Cinco De Mayo/F.I.T. Ads:Tcsd 951.74 5,143.73
108424 06/22/2006 003493 PRO-CRAFT Res Imprv Prgm: Anderson, Alice 4,773.00 4,773.00
108425 06/22/2006 005075 PRUDENTIAL OVERALL SUPPLY May Uniform/Fir MtfTwl Rentals:City Facs 1,110.71
credit:charges not per contract/PW -6.16 1,104.55
108426 06/22/2006 009606 PUBLIC RESOURCE MGMT claims consulting services:Finance 10,800.00 10,800.00
GROUP LLC
108427 06/22/2006 000728 RAMSEY BACKFLOW & backflow repairsltesting:Medians/Prks 1,026.00
PLUMBING
backflow repair/testing:var. slopes 732.00 1,758.00
108428 06/22/2006 000262 RANCHO CALIF WATER DISTRICT install water meters:Rdhwk medians 23,814.00 23,814.00
108429 06/22/2006 000262 RANCHO CALIF WATER DISTRICT Various Water Meters 16,860.24
Various Water Meters 217.30
Various Water Meters 64.98 17,142.52
Page:8
apChkLst Final Check List Page: 9
06/22/2006 12:25:41PM CITY OF TEMECULA
Bank: union UNION BANK OF CALIFORNIA (Continued)
Check # Date Vendor Description Amount Paid Check Total
108430 06/22/2006 010080 REED, DOROTHY S. transportationfTeam Bldg 6/14/06 54.38 54.38
108431 06/22/2006 003591 RENES COMMERCIAL Citywide R-O-Ws Cleanup 15,000.00 15,000.00
MANAGEMENT
108432 06/22/2006 002110 RENTAL SERVICE equipment rental:PW Maint Diy 43.69 43.69
CORPORATION
108433 06/22/2006 004498 REPUBLIC ELECTRIC traffic sgnl maint call out 5/29/06 1,160.00 1,160.00
108434 06/22/2006 008928 RIGEL PRODUCTS & SERVICE maint supplies:PW Maint Diy 32.33 32.33
108435 06/22/2006 010084 RIVAS, MANUEL refund :sec.depositfTCC 150.00 150.00
108436 06/22/2006 000352 RIVERSIDE CO ASSESSOR Jun assessor maps: Bldg & Safety 108.00 108.00
108437 06/22/2006 000418 RIVERSIDE CO CLERK & Ntc/Determination:Tem .Civic Center 1,314.00 1,314.00
RECORDER
108438 06/22/2006 000418 RIVERSIDE CO CLERK & Feb-Mar copy/rcrding fees:PW/Pln/Fin 39.00 39.00
RECORDER
108439 06/22/2006 000271 ROBERT BEIN VVM FROST & Apr Prof Sycs:I-15/Sr79s Ult Intrchng 7,931.24 7,931.24
ASSOC
108440 06/22/2006 000815 ROWLEY, CATHY TCSD Instructor Earnings 280.00
TCSD Instructor Earnings 189.00
TCSD Instructor Earnings 56.00 525.00
108441 06/22/2006 006365 RUBIN, STEVEN P. TCSD Instructor Earnings 686.00
TCSD Instructor Earnings 392.00
TCSD Instructor Earnings 294.00 1,372.00
108442 06/22/2006 001309 RUSE, PHYLLIS reimb:SCANATOA Conf5/10/06 120.78 120.78
108443 06/22/2006 002226 RUSSO, MARY ANNE TCSD Instructor Earnings 822.50
TCSD Instructor Earnings 789.60
TCSD Instructor Earnings 644.00
TCSD Instructor Earnings 567.00 2,823.10
108444 06/22/2006 000277 S & S ARTS & CRAFTS INC '06 Summer Day Camp Supplies 847.26
class supplies:Tiny Tots Prgm 298.45 1,145.71
108445 06/22/2006 008765 SAN DIEGO AEROSPACE '06 SMART Prgm Excursion 6/28/06 155.00 155.00
MUSEUM
Page:9
apChkLst Final Check List Page: 10
06/22/2006 12:25:41PM CITY OF TEMECULA
Bank: union UNION BANK OF CALIFORNIA (Continued)
Check # Date Vendor Description Amount Paid Check Total
108446 06/22/2006 005227 SAN DIEGO COUNTY OF Support Payment Case # DF099118 25.00 25.00
108447 06/22/2006 009974 SAN DIEGO READER May Display Ads:Theater 1,088.00 1,088.00
108448 06/22/2006 000278 SAN DIEGO UNION TRIBUNE May recruitment ads:PlnfTCSD 2,681.50 2,681.50
108449 06/22/2006 009736 SEAWORTHY SMALL SHIPS INC. '06 S.M.A.R.T. Program Supplies 1,155.00 1,155.00
108450 06/22/2006 008349 SHEA HOMES refund:Trust Account 7000 7,287.74 7,287.74
108451 06/22/2006 004609 SHREDFORCE INC May doc. shredding svcs: Rcrds Mgmt 110.00
May doc.shredding svcs:P.D.O.T.Stn 24.00 134.00
108452 06/22/2006 010079 SIMPKINS, KATHY transportationfTeam Bldg 6/14/06 54.38 54.38
108453 06/22/2006 000645 SMART & FINAL INC recreation supplies: Teen Program 212.12 212.12
108454 06/22/2006 008927 SMEAL FIRE APPARATUS Fire engine chassis:Fire stn 95 131,744.00 131,744.00
COMPANY
108455 06/22/2006 000537 SO CALIF EDISON Jun 2-01-202-7330 various mtrs 49,354.45
Jun 2-01-202-7603 arterial st lights 18,321.44
May 2-00-397-5059 various mtrs 10,799.75
Jun 2-26-887-0789 various mtrs 1,425.07
May 2-19-999-9442 various mtrs 1,260.04
Jun 2-25-393-4681 TES Pool 815.85
Jun 2-27-560-0625 DeerhollowWay 130.84 82,107.44
108456 06/22/2006 001212 SO CALIF GAS COMPANY gas line installation:Tem.Library 970.39 970.39
108457 06/22/2006 000519 SOUTH COUNTY PEST CONTROL May Pest Control Svcs:City Facilities 451.00
INC
pest control svcs:V.R.Pkwy/Nghthwk 84.00
pest control svcs:Willow Run 84.00 619.00
108458 06/22/2006 005786 SPRINT 4/15-5/14/06 cell phone usage/equip 7,893.57 7,893.57
108459 06/22/2006 004247 STERICYCLE INC May med.waste disposal svc:Paramedics 74.34 74.34
108460 06/22/2006 010068 SUGAPONG, EDWIN refund: 4th of July vendor 75.00 75.00
Page:10
apChkLst Final Check List Page: 11
06/22/2006 12:25:41PM CITY OF TEMECULA
Bank: union UNION BANK OF CALIFORNIA (Continued)
Check # Date Vendor Description Amount Paid Check Total
108461 06/22/2006 009937 SUPPLY CACHE, THE fire shelters:Fire Explorers Prgm 739.80 739.80
108462 06/22/2006 009926 SURFACE AMERICA INC Playground surfacing materials:Parks 775.47 775.47
108463 06/22/2006 002224 SYNDISTAR INC public safety educ.materials:Fire Prev 1,792.80 1,792.80
108464 06/22/2006 009585 TEMECULA BASEBALL DIAMOND Field Renovation/CSF Award 2,500.00 2,500.00
CLUB
108465 06/22/2006 009761 TEMECULA VALLEY MASTER security deposit:Theater 500.00 500.00
CHORALE
108466 06/22/2006 000306 TEMECULA VALLEY PIPE & drain system materials:Marg. Park 2,329.23 2,329.23
SUPPLY
108467 06/22/2006 003067 TEMECULA VALLEY R V SERVICE repair/maint:Police Command RV 760.85 760.85
108468 06/22/2006 004875 TEMECULA VALLEY TIME TCSD Instructor Earnings 1,750.00 1,750.00
MACHINE
108469 06/22/2006 003849 TERRYBERRY COMPANY ee safe driver awards:H.R. 157.94
clean up/refurbish:service pin 60.83 218.77
108470 06/22/2006 010078 TILLMAN, BEAU refund:parking cite 43519 10.00 10.00
108471 06/22/2006 000978 TRAUMA INTERVENTION PRGM 4th Qtr Emerg. Response Vol. Prgm 2,442.00 2,442.00
INC
108472 06/22/2006 002702 US POSTAL SERVICE Postage meter deposit 5,132.03 5,132.03
108473 06/22/2006 007118 US TELPACIFIC CORPORATION Jun Internet IP Addresses Block 949.44 949.44
108474 06/22/2006 009501 U T P GROUP INC Theater Stagehand Help Ppe 06/09 1,422.01 1,422.01
108475 06/22/2006 008517 UNITED SITE SERVICES OF 5/25-6/21 fence rental:Main St Bridge 26.40 26.40
CA,INC
108476 06/22/2006 010083 URBANO, JOEL refund :sec.depositfTCC 150.00 150.00
108477 06/22/2006 009797 VAINER, RENATA TCSD Instructor Earnings 249.55
TCSD Instructor Earnings 96.60 346.15
Page:11
apChkLst Final Check List Page: 12
06/22/2006 12:25:41PM CITY OF TEMECULA
Bank: union UNION BANK OF CALIFORNIA (Continued)
Check # Date Vendor Description Amount Paid Check Total
108478 06/22/2006 006807 VANIR CONSTRUCTION Apr Constr Mgmt Svcs:Roripaugh Fire Stn 15,502.86 15,502.86
108479 06/22/2006 004261 VERIZON Jun xxx-5072 general usage 4,847.53
Jun xxx-0073 general usage 220.05
Jun xxx-7562 irrigation controller 115.81
Jun xxx-5473 Moraga Rd 32.47
Jun xxx-391 0 1 st St Irrigation 31.66
Jun xxx-4723 Police Storefront 29.50
Jun xxx-8573 general usage 28.53
Jun xxx-3851 general usage 3.10 5,308.65
108480 06/22/2006 004848 VERIZON SELECT SERVICES INC Jun long distance phone svcs 1,410.14 1,410.14
108481 06/22/2006 001342 WAXIE SANITARY SUPPLY INC Custodial Supplies:C.H.fTCC/C.Mus. 265.93 265.93
108482 06/22/2006 005706 WESTERN PACIFIC SIGNAL LLC traf.sgnl ped.sgnlslpush buttons:PW 23,986.02 23,986.02
108483 06/22/2006 009378 WESTERN RIM CONTRACTORS May prgs pmt #8:Field Ops Ctr 1,881.00
INC
ret w/h pmt #8:Field Ops Ctr -188.10 1,692.90
108484 06/22/2006 000621 WESTERN RIVERSIDE COUNCIL Gen.Assembly mtg: M.Edwards 6/29/06 75.00 75.00
OF
108485 06/22/2006 010081 WESTERN STATES POLICE & Police/Fire Games Corp.Cohen 6/23-25 190.00 190.00
FIRE
108486 06/22/2006 010069 WOLLARD, STEFFANY refund: Tiny Tots - Terrific 3's 64.00 64.00
108487 06/22/2006 005195 ZOOLOGICAL SOCIETY '06 Smr Day Camp Excursion 6/29/06 2,196.25 2,196.25
Grand total for UNION BANK OF CALIFORNIA: 1,696,884.04
Page:12
apChkLst
06/22/2006
12:25:41PM
Final Check List
CITY OF TEMECULA
Page: 13
182
checks in this report.
Grand Total All Checks:
1,696,884.04
Page:13
apChkLst Final Check List Page: 1
06/29/2006 1:32:44PM CITY OF TEMECULA
Bank: union UNION BANK OF CALIFORNIA
Check # Date Vendor Description Amount Paid Check Total
704 06/29/2006 000444 INSTATAX (EDD) State Disability Ins Payment 20,291.39 20,291.39
705 06/29/2006 000283 INSTATAX (IRS) Federal Income Taxes Payment 79,690.22 79,690.22
706 06/29/2006 000246 PERS (EMPLOYEES' PERS ER Paid Member Contr Payment 110,275.39 110,275.39
RETIREMENT)
707 06/29/2006 000389 U S C M WEST (OBRA), OBRA - Project Retirement Payment 5,321.20 5,321.20
NATIONWIDE RETIREMENT
108488 06/29/2006 000434 ACCELA.COM Regist:'06 User Conf:8/21-24:E.Jones 625.00
Regist:'06 User Conf:8/21-24:S.Faris 625.00 1,250.00
108489 06/29/2006 004064 ADELPHIA 6/22-7/21 high speed internet MN 46.95 46.95
108490 06/29/2006 001281 ALHAMBRA GROUP Dog Park Idscp design:Margarita Prk 1,000.00 1,000.00
108491 06/29/2006 003821 ALLSTAR FIRE EQUIPMENT mobile hi air pressure cart: Stn 73 2,287.32 2,287.32
108492 06/29/2006 010075 ALVAREZ, EUGENIA Refund: Parent N Me Swim Lessons 40.00 40.00
108493 06/29/2006 000102 AMERICAN FENCE COMPANY Install temp fencing:Rdhwk dog prk 3,954.00 3,954.00
108494 06/29/2006 004240 AMERICAN FORENSIC NURSES Jun DUI Drug & Alcohol Screening 350.00
May DUI Drug & Alcohol Screening 245.00
Jun DUI Drug & Alcohol Screening 175.00
May DUI Drug & Alcohol Screening 105.00 875.00
108495 06/29/2006 008595 AMERICAN INTL GROUP INC Workers' Comp for June 2006 36,384.00 36,384.00
108496 06/29/2006 008279 AMERICOMP IN FOSYSTEMS INC Computer Supplies: Hard Drive 425.61 425.61
108497 06/29/2006 002480 ANIXTER INC Library phone system cable exchg 26.33 26.33
108498 06/29/2006 000101 APPLE ON E INC Temp help PPE 6/10 Kasparian 655.20
Temp help PPE 6/10 Gonzales 655.20
Temp help PPE 6/10 Palpallatoc 556.24
Temp help PPE 6/17 Palpallatoc 556.24
Temp help PPE 6/3 & 6/10 Thews 330.44
Temp help PPE 6/17 Kasparian 655.20 3,408.52
Page:1
apChkLst Final Check List Page: 2
06/29/2006 1:32:44PM CITY OF TEMECULA
Bank: union UNION BANK OF CALIFORNIA (Continued)
Check # Date Vendor Description Amount Paid Check Total
108499 06/29/2006 001561 ARCH WIRELESS PWfTCSD pagers paging/rental svcs 262.34 262.34
108500 06/29/2006 008393 ARNOLD, KRYSTA Refund: Sci Adv Camp - TCC 166.00 166.00
108501 06/29/2006 001323 ARROWHEAD WATER INC Bottled wtr svcs @ CRC/Aquatics 116.51
Bottled vvtr svcs @ CRC/Aquatics 50.23 166.74
108502 06/29/2006 010091 BALL, VERONICA Refund: Security Depst- TCC 150.00 150.00
108503 06/29/2006 004176 BROADWING Jun Long distance & internet svcs 749.15 749.15
TELECOMMUNICATIONS
108504 06/29/2006 009971 C S N STORES Lockers for Police mall storefront 823.72 823.72
108505 06/29/2006 007040 CAFE BRAVO COFFEE ROASTING Refreshments: 4th of July VIP area 112.50 112.50
CO.
108506 06/29/2006 003138 CAL MAT PW patch truck materials 283.89
PW patch truck materials 252.21
PW patch truck materials 167.04 703.14
108507 06/29/2006 005384 CALIF BAGEL BAKERY & DELI Refreshments: Youth & Gov't Day 414.84
Refreshments: CM business mtg 253.21
Refreshments: Council closed session 199.34 867.39
108508 06/29/2006 008613 CALIF BANK & TRUST D.Barnhart-Rel Ret.Esrw2160075819 Wf Crk 12,656.00 12,656.00
108509 06/29/2006 010090 CALL, SHARON Refund: Level 3 Swim Lessons 40.00 40.00
108510 06/29/2006 004971 CANON FINANCIAL SERVICES, Jun copier lease:City Facilities 1,908.32
INC
Jun copier lease: T. Museum/Frnt Rec. 203.58
Jun copier lease: CRC/Aquatics 178.86
Jun copier lease: Fire Stn 12 69.96 2,360.72
108511 06/29/2006 000387 CAREER TRACK SEMINARS Regist:Leadership Wrkshp:8117:Hazen 199.00
Regist:Leadership Wrkshp:8123:S.Brown 199.00
Regist:Leadership Wrkshp:8123:Papp 199.00 597.00
108512 06/29/2006 010101 CASA FOR RIVERSIDE CO. INC. FY 05/06 Comm. Svc Funding Prgm 6,050.00 6,050.00
108513 06/29/2006 001249 CENTRE FOR ORG Sprg Mgmt Academy:S.Faris/J.Ross 3,700.00 3,700.00
EFFECTIVENESS
Page2
apChkLst Final Check List Page: 3
06/29/2006 1:32:44PM CITY OF TEMECULA
Bank: union UNION BANK OF CALIFORNIA (Continued)
Check # Date Vendor Description Amount Paid Check Total
108514 06/29/2006 010092 CHEATUM, JAN Refund: Summer Day Camp 713-14 185.00 185.00
108515 06/29/2006 000137 CHEVRON USA INC City vehicles fuel:CM/Police 647.01 647.01
108516 06/29/2006 001139 CHIP MORTON PHOTOGRAPHY Brochures panorama photo shot 280.15 280.15
108517 06/29/2006 004405 COMMUNITY HEALTH CHARITIES Community Health Charities Payment 136.00 136.00
108518 06/29/2006 001193 COMP USA INC Computer supplies: 1GB Micro Cruzer 177.75
Computer supplies: USB 4 port 40.93 218.68
108519 06/29/2006 009905 COMPRISE TECHNOLOGIES INC Library Smart Access Mgr Software 13,929.50 13,929.50
108520 06/29/2006 000447 COMTRONIX OF HEMET Equip for new TCSD truck 06-135 1,145.08 1,145.08
108521 06/29/2006 001264 COSTCO WHOLESALE Misc. Office supplies for CAP team 599.40
Cowboy photo recep. supplies 185.55 784.95
108522 06/29/2006 003986 COZAD & FOX INC Apr design:Pechanga Prkway Ph II 10,210.00 10,210.00
108523 06/29/2006 006954 CRAFTSMEN PLUMBING & HVAC Sprts Prk Restroom plumbing repairs 85.00 85.00
108524 06/29/2006 009524 CREATIVE HANDS ART SCHOOL TCSD instructor earnings 630.00
TCSD instructor earnings 441.00
TCSD instructor earnings 252.00 1,323.00
108525 06/29/2006 010094 CRUMP, ROSALlMA Refund: Summer Day Camp 185.00 185.00
108526 06/29/2006 004123 D L PHARES & ASSOCIATES Jul Lease: Police Old Town Storefront 2,402.57 2,402.57
108527 06/29/2006 003945 DIAMOND ENVIRONMENTAL Portable restroom: Comm. Clean-up day 101.55
SRVCS
Portable restroom: Lng Cnyn Prk 75.98
Portable restroom: Margarita Prk 59.02
Portable restroom: Veterans Prk 57.98
Portable restroom: Vail Ranch Prk 57.98
Portable restroom: Riverton Prk 57.98 410.49
108528 06/29/2006 008230 DOUGLAS E BARNHART INC Apr-May prgss:Wolf Crk Sprts Cmplx 253,126.00
Apr-May retention:WoIf Crk Sprts Cmplx -12,656.00 240,470.00
Page:3
apChkLst Final Check List Page: 4
06/29/2006 1:32:44PM CITY OF TEMECULA
Bank: union UNION BANK OF CALIFORNIA (Continued)
Check # Date Vendor Description Amount Paid Check Total
108529 06/29/2006 004192 DOWNS COMMERCIAL FUELING Fuel for City vehicles:City Van/CIP 132.04 132.04
INC
108530 06/29/2006 001714 DREAM ENGINEERING INC Vail Ranch Bskball Light Design Prjt 975.00 975.00
108531 06/29/2006 009594 DULCHICELLA Entertainment: Street Painting Festival 600.00 600.00
108532 06/29/2006 001669 DUNN EDWARDS CORPORATION Supplies for graffiti removal 170.24
Supplies for graffiti removal 170.05
Supplies for graffiti removal 11.83 352.12
108533 06/29/2006 002528 EAGLE GRAPHIC CREATIONS EE engraved recognition glass mugs 17.24 17.24
INC
108534 06/29/2006 009807 ELLIOTT, MOTOMI Refund: Hawaiian-Tahitian Beginning 40.00 40.00
108535 06/29/2006 007611 EMPIRE PRODUCTIONS Refund: Security Depst - TCC 150.00 150.00
108537 06/29/2006 001056 EXCEL LANDSCAPE May Idscp impr: Crwne Hill 10,943.44
May Idscp impr: Ynez Medians 6,458.64
May Idscp impr:Redhawk Medians 4,030.31
May Idscp impr: Saddlewood 2,854.00
May Idscp impr: Solana 1,938.00
May Idscp impr: Saddlewood 1,935.00
May Idscp impr: Solana Way 1,884.50
May Idscp impr:Redhawk Medians 1,832.88
May Idscp impr: Vail Ranch 1,369.57
May Idscp impr: Corte Cantera 968.08
May Idscp impr: Presleys 966.95
May Idscp impr: Vintage Hills 910.86
May Idscp impr:City Hall/Old Tovvn 826.88
May Idscp impr: Trade Winds 627.42
May Idscp impr:Ynez/O\fflnd Medians 549.78
May Idscp impr: Pala/Hintergardt Prks 539.49
May Idscp impr:Sprts PrkNail 514.35
May Idscp impr: Barclay Estates 403.85
May Idscp impr: Calle Medusa 323.08
May Idscp impr:Jefferson Medians 306.87
May Idscp impr: R. Calif. Medians 288.00
May Idscp impr: Harveston/MdwView 248.15 40,720.10
108538 06/29/2006 000478 FAST SIGNS Old Town KIOSK signs 2,253.95
Old Town WI-FI Signs 654.04
4th of July Event Banners 296.42
FIT prgm banners chgs 65.87 3,270.28
Page:4
apChkLst Final Check List Page: 5
06/29/2006 1:32:44PM CITY OF TEMECULA
Bank: union UNION BANK OF CALIFORNIA (Continued)
Check # Date Vendor Description Amount Paid Check Total
108539 06/29/2006 000165 FEDERAL EXPRESS INC Jun 7-13 Express mail services 349.23 349.23
108540 06/29/2006 000206 FEDEX KINKOS INC Stationery paper/mise supplies:Plan 197.44 197.44
108541 06/29/2006 003747 FINE ARTS NETWORK Adv. Ticket Sales: Kiss Me Kate 6/23-7/2 9,643.00 9,643.00
108542 06/29/2006 003347 FIRST BANKCARD CENTER
010102 HARBOR HOUSE RESTAURANT DU Refreshments: Plan Team Bldg 646.33
009087 WEBREGPRO DU RegistCCAPA Cf:10/22-25:Kitzerow 500.00
009087 WEBREGPRO DU RegistCCAPA Cf:10/22-25:Comte 465.00
009087 WEBREGPRO DU RegistCCAPA Cf:10/22-25:Damko 465.00
002283 EMBASSY SUITES HOTEL DU Htl:ICC Sprg Conf:5/21-24 176.26
000307 TEMECULA TROPHY COMPANY DU Blue Wave Award 81.62
007409 OLD TOWN DINING LLC DU Refreshments: Plan Comm Mtg 50.29
DU Bank charges 35.00 2,419.50
108543 06/29/2006 002982 FRANCHISE TAX BOARD Support Payment Case # 452379267 75.00 75.00
108544 06/29/2006 008416 FRONTBRIDGE TECHNOLOGIES May Citywide E-mail Spam Filtering 287.50 287.50
INC
108545 06/29/2006 009097 FULL COMPASS SYSTEMS Theater Audio Equipment 1,572.10 1,572.10
108546 06/29/2006 004514 G T S I CORP Mounting brackets for Fire vehicles 159.05 159.05
108547 06/29/2006 000177 GLENNIES OFFICE PRODUCTS Office Supplies: Comm. Svcs 350.93 350.93
INC
108548 06/29/2006 005947 GOLDEN STATE OVERNIGHT Express Mail Service:Fire Prevo 66.60 66.60
108549 06/29/2006 000711 GRAPHICS UNLIMITED Theater letterhead & envelopes 1,015.01
LITHOGRAPHY
Theater mailing labels 391.13
Theater note cards 238.13 1,644.27
108550 06/29/2006 000186 HANKS HARDWARE INC Hardware supplies: Theater 322.50
Hardware supplies: Parks 139.84
Hardware supplies: T.Museum 42.33
Hardware supplies: TCC 4.85 509.52
PageS
apChklst Final Check List Page: 6
06/29/2006 1:32:44PM CITY OF TEMECULA
Bank: union UNION BANK OF CALIFORNIA (Continued)
Check # Date Vendor Description Amount Paid Check Total
108551 06/29/2006 006250 HAZ MAT TRANS INC Hazardous waste dispose svcs 5,000.00 5,000.00
108552 06/29/2006 010108 HERNANDEZ, GRACE Refund: Security Depst - MPSC 150.00 150.00
108553 06/29/2006 004811 HEWLETT PACKARD 113 -Library Computers & Software 97,708.77
115- Library monitors & wall mtn/secrty 32,328.05
2 - HP Computer notebooks 3,218.01
Council Computer Tablet Batteries 228.43 133,483.26
108554 06/29/2006 005748 HODSON, CHERYL A Support Payment 12.28 12.28
108555 06/29/2006 003198 HOME DEPOT, THE Hardware supplies: Park sites 100.00
Hardware supplies: Park sites 40.73 140.73
108556 06/29/2006 004833 IMPERIAL PAVING COMPANY INC Bike trail asphalt repairs 10,998.00 10,998.00
108557 06/29/2006 001407 INTER VALLEY POOL SUPPLY Pool sanitizing chemicals 571.29
INC
Pool sanitizing chemicals 524.85
Pool sanitizing chemicals 272.40 1,368.54
108558 06/29/2006 010093 KENNEY, CHRISTOPHER Refund: Summer Day Camp 7/17-28 210.00
Refund: Summer Day Camp 7/31-8111 205.00 415.00
108559 06/29/2006 007861 KHAZAELI, JAVID, M. Entertainment: Street Painting Festival 600.00 600.00
108560 06/29/2006 002789 KIMCO STAFFING SERVICES INC Temp help PPE 6/18 Bagdasarian 638.00
Temp help PPE 6/11 Bagdasarian 638.00
Temp help PPE 6/18 Albalos 255.20
Temp help PPE 5/28 Bagdasarian 255.20
Temp help PPE 6/18 Pen sader 255.20
Temp help PPE 6/18 Wedeking 195.75 2,237.35
108561 06/29/2006 010040 KNIGHT, LLOYD & KAREN Temp storage during Pauba Rd Impr 375.00 375.00
108562 06/29/2006 003726 LIFE ASSIST INC Paramedic Medical Supplies 2,052.84 2,052.84
108563 06/29/2006 007998 LINGO INDUSTRIAL Pechanga Pkwy trffc signal poles 11,704.88 11,704.88
ELECTRONICS
108564 06/29/2006 008070 LOPEZ-WILLIAMS, LORENA Refund: level 2 Swim lessons 6/19-30 45.00
Refund: level 2 Swim lessons 7/3-14 40.00 85.00
Page:6
apChklst Final Check List Page: 7
06/29/2006 1:32:44PM CITY OF TEMECULA
Bank: union UNION BANK OF CALIFORNIA (Continued)
Check # Date Vendor Description Amount Paid Check Total
108565 06/29/2006 006897 LORY, SUSAN, J. TCSD instructor earnings 630.00
TCSD instructor earnings 604.80
TCSD instructor earnings 600.60
TCSD instructor earnings 537.60
TCSD instructor earnings 504.00
TCSD instructor earnings SOD. 50
TCSD instructor earnings 491.40
TCSD instructor earnings 462.00
TCSD instructor earnings 446.40
TCSD instructor earnings 415.80
TCSD instructor earnings 411.60
TCSD instructor earnings 304.50
TCSD instructor earnings 294.00
TCSD instructor earnings 87.50 6,290.70
108566 06/29/2006 004141 MAINTEX INC custodial supplies:City Hall 50.63 50.63
108567 06/29/2006 004068 MANALlLI, AILEEN TCSD Instructor Earnings 84.00
TCSD Instructor Earnings 52.50
TCSD Instructor Earnings 50.75
TCSD Instructor Earnings 43.75
TCSD Instructor Earnings 24.50
TCSD Instructor Earnings 19.25 274.75
108568 06/29/2006 001967 MANPOWER TEMPORARY temp help w/e 06/11 Hoof/Dankworth 1,368.80 1,368.80
SERVICES
108569 06/29/2006 004307 MARINE BIOCHEMISTS Jun maint:Harveston lake/Duck Pond 4,855.00 4,855.00
108570 06/29/2006 002666 MASON & MASON REAL ESTATE Appraisal srvcs: Butterfield Stage Rd 22,000.00 22,000.00
108571 06/29/2006 010109 MAXWELL ENGINEERING refund:Summer Day Camp/Claire 200.00
refund:Summer Day Camp/Camille 195.00 395.00
108572 06/29/2006 006571 MELODY'S AD WORKS reimb expenses:Street Painting Festival 392.10 392.10
108573 06/29/2006 010059 MERIT MOVING SYSTEM freight/moving chrgs:lnt'1 Art Exhibit 565.00 565.00
108574 06/29/2006 009541 MEYER AND ASSOCIATES Jun TCC Expansion design 174.58 174.58
108575 06/29/2006 008091 MILLMORE'S WAX CREW City vehicle detailing svcs:PW Depts 125.00 125.00
108576 06/29/2006 001384 MINUTEMAN PRESS printing svcs:Planning 110.D7 110.07
Page:?
apChkLst
06/29/2006
1:32:44PM
Final Check List
CITY OF TEMECULA
Page: 8
Bank: union UNION BANK OF CALIFORNIA
(Continued)
Check # Date Vendor
Description
Amount Paid Check Total
40.00 40.00
1,007.47 1,007.47
9,900.00 9,900.00
SOD. 00 500.00
2.74 2.74
44.95 44.95
7,884.00 7,884.00
11,657.50 11,657.50
2,268.20
726.95 2,995.15
1,627.05
-159.66 1,467.39
4,250.00 4,250.00
6.47 6.47
40.00 40.00
25.86 25.86
108577 06/29/2006 009802 MIRANDA, KACI
refund:toddler swim lessons
108578 06/29/2006 003135 MOORE WALLACE
parking/registr.citation form s: Police
108579 06/29/2006 006146 MT SAN JACINTO COMMUNITY
training svcs:PW Engs/I.S. Dept
108580 06/29/2006 006146 MT SAN JACINTO COMMUNITY
periormance:Street Painting Festival
108581 06/29/2006 006087 NATURE WATCH
recreation supplies:T.Museum
108582 06/29/2006 000233 NELSON, SHAWN
reimb Jun Intemet svcs
108583 06/29/2006 002037 NEXUS INTEGRATION SERVICES telephone system annual maint
108584 06/29/2006 008528 NICHOLS, MELBURG & ROSETTO May consulting:Civic Center Complex
108585 06/29/2006 002898 NIXON EGLI EQUIPMENT patch truck repair/maint: PVI/
COMPANY
patch truck repair/maintPW
108586 06/29/2006 002139 NORTH COUNTY TIMES May cultural arts ads:Theater
credit:overchrg on acct #43145
108587 06/29/2006 004401 NU VISION PRODUCTIONS Every 15 Min Prgm video production
108588 06/29/2006 009570 o C B REPROGRAPHICS dup.blueprints:79 South Medians
108589 06/29/2006 010098 ODOU, DIANE refund:level 4/5 swim lessons
108590 06/29/2006 006721 OFFICEMAX - A BOISE COMPANY office supplies:Finance
108591 06/29/2006 002105 OLD TOWN TIRE & SERVICE
City Vehicle RepairlMaint Svcs
City Vehicle Repair/Maint SVcs
City Vehicle Repair/Maint SVcs
City Vehicle Repair/Maint SVcs
City Vehicle Repair/Maint SVcs
City Vehicle Repair/Maint SVcs
City Vehicle Repair/Maint SVcs
City Vehicle Repair/Maint SVcs
City Vehicle Repair/Maint SVcs
City Vehicle Repair/Maint SVcs
439.34
353.13
309.00
194.97
159.41
116.92
110.93
110.15
7737
34.27
1,905.49
Page:8
apChkLst Final Check List Page: 9
06/29/2006 1:32:44PM CITY OF TEMECULA
Bank: union UNION BANK OF CALIFORNIA (Continued)
Check # Date Vendor Description Amount Paid Check Total
108592 06/29/2006 001171 ORIENTAL TRADING COMPANY Tiny Tots Program Supplies 299.15
INC
activity suppliesTeam Pace 295.90
Teen Program Supplies 282.10 877.15
108593 06/29/2006 002297 OVERLAND PACIFIC & CUTLER May consulting:Civic Center 2,312.50 2,312.50
INC
108594 06/29/2006 002256 P & D CONSULTANTS INC May inspection svcs:B. Henderson 10,887.12 10,887.12
108595 06/29/2006 007893 PADHY,KRUSHNA refund:level 4/5 swim lessons 40.00 40.00
108596 06/29/2006 004538 PAULEY EQUIPMENT COMPANY TCSD equipment repair 118.50
TCSD equipment repair 100.09 218.59
108597 06/29/2006 004805 PEACOCK ENTERPRISES INC printer toner cartridges:I.S. 1,523.99 1,523.99
108598 06/29/2006 001320 PELLETIER, JULIE reimb:Del Mar Fair/MPSC Excursion 144.00
reimb:special event supplies 67.18 211.18
108599 06/29/2006 001958 PERS LONG TERM CARE PERS Long Term Care Payment 288.55 288.55
PROGRAM
108600 06/29/2006 000249 PETTY CASH Petty Cash Reimbursement 594.77 594.77
108601 06/29/2006 007484 PHILIPS MEDICAL SYSTEMS INC Purchase AED's:Paramedics 3,488.41
purchase of AED's:Paramedics 1,452.68 4,941.09
108602 06/29/2006 003831 PHILLIPS COMPANY, THE AED prgm:Paramedics 4,287.92
AED prgm:Paramedics 697.69 4,985.61
108603 06/29/2006 000254 PRESS ENTERPRISE COMPANY annual newspaper subscrTCSD 330.74 330.74
INC
108604 06/29/2006 009717 PSOMAS Admin svcs:Wolf Creek 2,500.00
Admin svcs:Crowne Hill 2,125.00
Admin svcs:CFD 88-12 1,500.00
Admin svcs:Harveston II 1,375.00
Admin svcs:CFD 88-12 sales tax 1,250.00 8,750.00
108605 06/29/2006 004519 PYRO SPECTACULARS INC 2006 July 4th Fireworks Display 31,500.00 31,500.00
108606 06/29/2006 004529 QUAID TEMECULA HARLEY- May motorcycle maint svcs:Police 22,422.29
DAVIDSON
credit:amt exceeds contract agrmnt -2,824.00 19,598.29
Page:9
apChkLst Final Check List Page: 10
06/29/2006 1:32:44PM CITY OF TEMECULA
Bank: union UNION BANK OF CALIFORNIA (Continued)
Check # Date Vendor Description Amount Paid Check Total
108607 06/29/2006 000262 RANCHO CALIF WATER DISTRICT Jun 01-23-01075-1 Crowne Hill Dr 629.51 629.51
108608 06/29/2006 004483 RECREONICS INC rescue tube/cover:Aquatics 420.92 420.92
108609 06/29/2006 010067 REEVES, KENT ALAN presentation/exhibit fees:T.Mus 6/3 618.36 618.36
108610 06/29/2006 004584 REGENCY LIGHTING electrical supplies:City Facilities 1,788.78 1,788.78
108611 06/29/2006 003591 RENES COMMERCIAL Idscp services:Parks R-O-Ws 2,000.00
MANAGEMENT
weed abatement/var slopes:City Parks 2,000.00 4,000.00
108612 06/29/2006 002110 RENTAL SERVICE equipment rental:PW Maint 22.85 22.85
CORPORATION
108613 06/29/2006 004498 REPUBLIC ELECTRIC May eng svcs:PWTraffic 9,600.00 9,600.00
108614 06/29/2006 002412 RICHARDS WATSON & GERSHON May 2006 legal services 82,998.50 82,998.50
108615 06/29/2006 000353 RIVERSIDE CO AUDITOR May '06 parking citation assessments 4,776.00 4,776.00
108616 06/29/2006 005413 RIVERSIDE CO WASTE worm bin for Children's Museum 65.00 65.00
MANAGEMENT
108617 06/29/2006 003587 RIZZO CONSTRUCTION INC install park monument signs:City Parks 15,600.00
Install carpet/door/fire sprinklerThtr 7,056.00 22,656.00
108618 06/29/2006 010100 ROMYN, JAYNE refund:Sci Adv Camp-Physics Grand 332.00 332.00
108619 06/29/2006 010099 RONSON, ASCELLA refund Tumble Jungle-Tiny Tumblers 263.00 263.00
108620 06/29/2006 003027 ROOFTEK ROOFING- Res Imprv Prgm: Walters, Dora 7,500.00 7,500.00
WATERPROOF
108621 06/29/2006 005024 ROSENOW, EILEEN refund:level 3 swim lessons 40.00 40.00
108622 06/29/2006 001942 S C SIGNS May posting public notices:Planning 3,145.00
Apr posting public notices:Planning 1,640.00
Jun posting public notices:Planning 1,125.00 5,910.00
108623 06/29/2006 009708 S L M CONTRACT FURNITURE office furniture:Police Mall Stn 6,551.65 6,551.65
INC
Page:10
apChkLst Final Check List Page: 11
06/29/2006 1:32:44PM CITY OF TEMECULA
Bank: union UNION BANK OF CALIFORNIA (Continued)
Check # Date Vendor Description Amount Paid Check Total
108624 06/29/2006 009196 SACRAMENTO THEATRICAL Stage Supplies:Theater 1,617.10
LIGHTING
stage Supplies:Theater 354.41
stage Supplies:Theater 197.69
stage Supplies:Theater 135.93 2,305.13
108625 06/29/2006 006712 SERVEN, RICK ee computer purchase prgm 1,846.84 1,846.84
108626 06/29/2006 006714 SHERATON HOTEL Htl:Accela Cf:S.Faris 307441857 8/21-24 593.64 593.64
108627 06/29/2006 006714 SHERATON HOTEL Htl:Accela Cf:E.Jones 797441857 8/21-24 593.64 593.64
108628 06/29/2006 008529 SHERIFF'S CIVIL DIV - CENTRAL Support Payment LO File # 2005033893 150.00 150.00
108629 06/29/2006 000537 SO CALIF EDISON Jun 2-02-351-4946 MPSC 1,797.94
Jun 2-18-937-3152 T.Museum 1,360.59
Jun 2-27-615-1750 Fire Stn 73 978.07
Jun 2-23-365-5992 Fire Stn 92 604.69
Jun 2-11-007-0455 6th St 368.89
Jun 2-22-891-0550 various mtrs 354.45
Jun 2-20-817-9929 Police OT Stn 341.38
Jun 2-21-911-7892 Old Town Prk Lot 133.98
Jun 2-27-632-3565 Camino Piedra Raja 128.61
Jun 2-27-287-5527 various mtrs 128.36
Jun 2-21-981-4720 Hwy 79S 63.96
Jun 2-19-171-8568 Wedding Chpl 57.27
Jun 2-14-204-1615 Front St Rdio 50.52
Jun 2-27-371-8494 Offsite storage 20.38 6,389.09
108630 06/29/2006 001212 SO CALIF GAS COMPANY Jun gas meter usage:City Facilities 1,325.74
Jun 095-167-7907-2 Fire Stn 84 171.38
Jun 101-525-1560-6 Fire Stn 73 71.70 1,568.82
108631 06/29/2006 000519 SOUTH COUNTY PEST CONTROL pest control svcs:Code Enf. 84.00 84.00
INC
108632 06/29/2006 005724 SOUTHWEST FAMILY YMCA FY 05/06 CDBG funding 4,773.00 4,773.00
108633 06/29/2006 005786 SPRINT Jun Acct Level Chrgs 31.41 31.41
108634 06/29/2006 000293 STADIUM PIZZA refreshmentslstafftrng:C. Museum 28.07 28.07
108635 06/29/2006 002366 STEAM SUPERIOR CARPET Clean carpets:MPSC 350.00
CLEANING
Clean carpets:CRC 275.00 625.00
Page:11
apChkLst Final Check List Page: 12
06/29/2006 1:32:44PM CITY OF TEMECULA
Bank: union UNION BANK OF CALIFORNIA (Continued)
Check # Date Vendor Description Amount Paid Check Total
108636 06/29/2006 004570 STEPHEN G WHITE, MAl Appraisal srvcs:Harveston CFD 5,000.00 5,000.00
108637 06/29/2006 000465 STRADLEY, MARY KATHLEEN TCSD Instructor Earnings 913.50
TCSD Instructor Earnings 567.00
TCSD Instructor Earnings 283.50 1,764.00
108638 06/29/2006 003840 STRONGS PAINTING roofmaintWed Chpl & Park restroom 3,000.00 3,000.00
108639 06/29/2006 009937 SUPPLY CACHE, THE Fire Shelter:Fire Explorers Prgm 96.00 96.00
108640 06/29/2006 000305 TARGET BANK BUS CARD SRVCS Teen Program Supplies 761.14
digital camera/supplies:CRC 310.80
2006 SMART Art Cart Supplies 280.13
recreation supplies:MPSC 237.76
4th of July supplies:TCSD 134.23
recreation supplies:MPSC 114.19
recreation supplies:MPSC 69.83
recreation supplies:Aquatics 49.63
recreation supplies:CRC 24.07 1,981.78
108641 06/29/2006 009500 TEMEC ELECTRONICS, INC electrical supplies:C. Museum 34.62 34.62
108642 06/29/2006 006465 TEMECULA AUTO REPAIR City vehicle maint svcs:Paramedics 1,297.04
City vehicle maint svcs:Paramedics 1,058.99
City vehicle maint svcs:Fire Prev 720.90
City vehicle maint svcs:Bldg & Safety 588.82
City vehicle repair/maint:Paramedics 288.24
City vehicle maint svcs:Paramedics 280.42
City vehicle maint svcs:Fire Prev 246.53
City vehicle maint svcs:Fire Prev 228.60
City vehicle maint svcs:Fire Prev 100.75
City vehicle maint svcs:Paramedics 39.00
City vehicle maint svcs:Code Enf. 34.67 4,883.96
108643 06/29/2006 006914 TEMECULA COPIERS INC. May copier maintlusage:City Facilities 5,350.50 5,350.50
108644 06/29/2006 001035 TEMECULA ENVIRONMENTAL Jan-Jun '06 trash hauling srvcs 2,163,061.80
Jul-Dec '05 trash hauling srvcs 41,665.43
credit:Jan-Jun '06 trash hauling srvcs -144,384.26 2,060,342.97
108645 06/29/2006 005412 TEMECULA GARDEN & POWER equipment:PW Maint Crews 890.85 890.85
108646 06/29/2006 000307 TEMECULA TROPHY COMPANY Ronald Reagan Sports Park plaque 1,262.40
recogn award: J. Kitchel 97.78 1,360.18
Page:12
apChkLst Final Check List Page: 13
06/29/2006 1:32:44PM CITY OF TEMECULA
Bank: union UNION BANK OF CALIFORNIA (Continued)
Check # Date Vendor Description Amount Paid Check Total
108647 06/29/2006 004274 TEMECULA VALLEY SECURITY locksmith services: Police 159.42 159.42
CENTR
108648 06/29/2006 004145 TIME WARNER TELECOM Jun City phones general usage 1,054.72 1,054.72
108649 06/29/2006 000668 TIMMY D PRODUCTIONS INC OJ Services:Teen Pool Party 6/24/06 450.00 450.00
108650 06/29/2006 005937 TOMCZAK, MARIA T. TCSO Instructor Earnings 70.00 70.00
108651 06/29/2006 002452 TOP LINE INDUSTRIAL equip parts/supplies: PW Maint 29.73 29.73
108652 06/29/2006 003031 TRAFFIC CONTROL SERVICE INC traffic control devices:PWMaint 1,395.90 1,395.90
108653 06/29/2006 004576 TRINITY WORKPLACE LEARNING annual 'Wildfire" subscr:H.Windsor 32.00 32.00
108654 06/29/2006 010110 TURNBOUGH, MARIA refund :sec.depositfTCC 400.00 400.00
108655 06/29/2006 005460 U S BANK trustee admin fees:ROA Arbitrage 2,500.00 2,500.00
108656 06/29/2006 004981 UNISOURCE SCREENING & 6/1-15/06 background screening svcs 117.50 117.50
108657 06/29/2006 000325 UNITED WAY United Way Charities Payment 220.15 220.15
108658 06/29/2006 004368 VAll COOPER & ASSOCIATES May inspection svcs: P.Karbassyoon 14,177.38
INC
May inspection svcs: G. Berg 18,546.02 32,723.40
108659 06/29/2006 004261 VERIZON Jun xxx-0074 general usage 294.49
Jun xxx-9074 McLaughlin Bldg 203.12
Jun xxx-2016 reverse 911 108.89
Jun xxx-3526 fire alarm 85.63
Jun xxx-3564 alarm 57.10
Jun xxx-0714 PO Mall Alarm 30.63
Jun xxx-7786 C. Washington 30.37
Jun xxx-5275 PO OSL 29.50
Jun xxx-3984 M. Naggar 28.63
Jun xxx-2676 general usage 28.53
Jun xxx-6084 general usage 27.47 924.36
108660 06/29/2006 004789 VERIZON ONLINE Internet svcs xx9549 Police Storefront 42.89
Internet svcs xx2527 PO OSL 42.89 85.78
Page:13
apChkLst Final Check List
06/29/2006 1:32:44PM CITY OF TEMECULA
Bank: union UNION BANK OF CALIFORNIA (Continued)
Check # Date Vendor Description Amount Paid
108661 06/29/2006 009663 VERNON LIBRARY SUPPLIES INC tags (RFID system) for Tem. Library 1,807.95
tag prgm/disp system lease:Tem.Library 1,350.00
108662 06/29/2006 009101 VISION ONE INC May ShoWare ticket sales:Theater 1,167.00
108663 06/29/2006 008445 WALT ALLEN ARCHITECT design svcs:Police mall storefront 792.57
Apr design:Police mall storefront 271.25
108664 06/29/2006 007199 WECK, DOROTHY A., TRUSTEE refund:prkng cite #41818 325.00
108665 06/29/2006 003730 WEST COAST ARBORISTS INC 5/16-31 Citywide Tree Trimming Svcs 1,640.00
tree evaluation report:Civic Ctr parking 157.50
108666 06/29/2006 000341 WILLDAN ASSOCIATES INC plan check svcs: Fire Prey 1,420.30
108667 06/29/2006 003776 ZOLL MEDICAL CORPORATION medical supplies:Paramedics 1,037.65
medical supplies:Paramedics 56.23
108668 06/29/2006 007085 ZUNA, JOHN PAUL ee computer purchase prgm 1,160.17
Page: 14
Grand total for UNION BANK OF CALIFORNIA:
Check Total
3,157.95
1,167.00
1,063.82
325.00
1,797.50
1,420.30
1,093.88
1,160.17
3,267,849.74
Page:14
apChkLst
06/29/2006
1:32:44PM
Final Check List
CITY OF TEMECULA
Page: 15
184
checks in this report.
Grand Total All Checks:
3,267,849.74
Page:15
I~-- .
,
II
ITEM NO.3
II
,
II
-
.
.
.
I
I
II
II
__. . I
Approvals
City Attorney
Director of Finance
City Manager
~~
/J1l-
t:W
(J
CITY OF TEMECULA
AGENDA REPORT
TO:
City Manager/City Council
FROM:
Genie Roberts, Director of Finance
DATE:
July 11, 2006
SUBJECT:
City Treasurer's Report as of May 31, 2006
PREPARED BY:
Karin A. Grance, Revenue Manager
Shannon Buckley, Accountant
RECOMMENDATION:
May 31,2006.
That the City Council receive and file the City Treasurer's Report as of
BACKGROUND: Government Code Sections 53646 and 41004 require reports to the
City Council regarding the City's investment portfolio, receipts, and disbursements respectively.
Adequate funds will be available to meet budgeted and actual expenditures of the City for the next
six months. Current market values are derived from the Local Agency Investment Fund (LA IF)
reports, Union Bank of California trust and custody statements, and from USBanktrust statements.
Attached is the City Treasurer's Report that provides this information.
The City's investment portfolio is in compliance with the statement of investment policy and
Government Code Sections 53601 and 53635 as of May 31,2006.
FISCAL IMPACT:
None.
ATTACHMENTS:
City Treasurer's Report as of May 31, 2006
Reporting period 05/01/2006-0513112006
RunDate:OO!28!2000-15:52
City of Temecula, California
Portfolio Management
Portfolio Summary
May 31, 2006
City ctTemecula
43200 6usiness Park D-rve
PO 60x9033
Temecula, CA, 92590
(951)694-6430
Portfolio TEME
CP
PM (PRF_PM1)SyrnRer<5.4U02a
ReportVer.5.00
City of Temecula, California
Portfolio Management Page 2
Portfolio Details - Investments
May 31, 2006
Average Purchase Stated YTM YTM Days to Maturity
CUSIP Investment # Issuer Balance Date Par Value Market Value Book Value Rate 360 365 Maturity Date
Managed Pool Accounts
SYSCFD 03-04-1 AD 03-04-1 First American Treasury 17,571.37 17,571.37 17,571.37 4.380 4.320 4.380
SYSCFD 03-04-2 AD 03-04-2 First American Treasury 15,958.80 15,958.80 15,958.80 4.380 4.320 4.380
SYSCFD 03-04-3 AD 03-04-3 First American Treasury 3,504.20 3,504.20 3,504.20 4.380 4.320 4.380
SYSCFD 03-04-5 AD 03-04-5 First American Treasury 09/01/2005 1,779.30 1,779.30 1,779.30 4.380 4.320 4.380
SYSCFD 01-2-1 CFD 01-2-1 First American Treasury 496,918.95 496,918.95 496,918.95 4.380 4.320 4.380
SYSCFD 01-2-2 CFD 01-2-2 First American Treasury 155,223.85 155,223.85 155,223.85 4.380 4.320 4.380
SYSCFD 01-2-3 CFD 01-2-3 First American Treasury 7,881.47 7,881.47 7,881.47 4.380 4.320 4.380
SYSCFD 01-2-4 CFD 01-2-4 First American Treasury 137,163.97 137,163.97 137,163.97 4.380 4.320 4.380
SYSCFD 01-2-5 CFD 01-2-5 First American Treasury 2,912,137.45 2,912,137.45 2,912,137.45 4.380 4.320 4.380
SYSCFD 01-2-9 CFD 01-2-9 First American Treasury 03/29/2006 608,117.89 608,117.89 608,117.89 4.380 4.320 4.380
SYSCFD 03-02-10 CFD 03-02-10 First American Treasury 04/01/2006 680,310.48 680,310.48 680,310.48 4.380 4.320 4.380
SYSCFD 03-02-11 CFD 03-02-11 First American Treasury 04/01/2006 37,752,196.32 37,752,196.32 37,752,196.32 4.380 4.320 4.380
SYSCFD 03-02-13 CFD 03-02-13 First American Treasury 04/01/2006 79,960.75 79,960.75 79,960.75 4.380 4.320 4.380
SYSCFD 03-02-3 CFD 03-02-3 First American Treasury 04/01/2006 942,690.73 942,690.73 942,690.73 4.380 4.320 4.380
SYSCFD 03-02-6 CFD 03-02-6 First American Treasury 04/01/2006 3,505,449.83 3,505,449.83 3,505,449.83 4.380 4.320 4.380
SYSCFD 03-02-7 CFD 03-02-7 First American Treasury 04/01/2006 1,063,195.23 1,063,195.23 1,063,195.23 4.380 4.320 4.380
SYSCFD 03-02-9 CFD 03-02-9 First American Treasury 04/01/2006 1,381,645.56 1,381,645.56 1,381,645.56 4.380 4.320 4.380
SYSCFD 03-1-1 CFD 03-03-1 First American Treasury 916,221.52 916,221.52 916,221.52 4.380 4.320 4.380
SYSCFD 03-03-11 CFD 03-03-11 First American Treasury 10,385.88 10,385.88 10,385.88 4.380 4.320 4.380
SYSCFD 03-03-2 CFD 03-03-2 First American Treasury 125.06 125.06 125.06 4.380 4.320 4.380
SYSCFD 03-03-3 CFD 03-03-3 First American Treasury 0.00 0.00 0.00 4.830 4.764 4.830
SYSCFD 03-03-6 CFD 03-03-6 First American Treasury 0.02 0.02 0.02 4.380 4.320 4.380
SYSCFD 03-03-6 CFD 03-03-7 First American Treasury 840.05 840.05 840.05 4.380 4.320 4.380
SYSCFD 03-03-9 CFD 03-03-9 First American Treasury 3,081.27 3,081.27 3,081.27 4.380 4.320 4.380
SYSCFD 03-06-0 CFD 03-06-0 First American Treasury 01/01/2006 68,039.13 68,039.13 68,039.13 4.380 4.320 4.380
SYSCFD 03-06-1 CFD 03-06-1 First American Treasury 0.00 0.00 0.00 4.380 4.320 4.380
SYSCFD 03-06-2 CFD 03-06-2 First American Treasury 352,362.95 352,362.95 352,362.95 4.380 4.320 4.380
SYSCFD 03-06-3 CFD 03-06-3 First American Treasury 2,689.17 2,689.17 2,689.17 4.380 4.320 4.380
SYSCFD 03-06-8 CFD 03-06-8 First American Treasury 05/01/2006 3,182.49 3,182.49 3,182.49 4.380 4.320 4.380
SYSCFD 03-1-1 CFD 03-1-1 First American Treasury 186,548.24 186,548.24 186,548.24 4.380 4.320 4.380
SYSCFD 03-1-10 CFD 03-1-10 First American Treasury 962.37 962.37 962.37 4.380 4.320 4.380
SYSCFD 03-1-13 CFD 03-1-13 First American Treasury 08/31/2005 0.00 0.00 0.00 3.860 3.807 3.860
SYSCFD 03-1-16 CFD 03-1-16 First American Treasury 08/31/2005 228,430.21 228,430.21 228,430.21 4.380 4.320 4.380
SYSCFD 03-1-2 CFD 03-1-2 First American Treasury 83.56 83.56 83.56 4.380 4.320 4.380
SYSCFD 03-1-21 CFD 03-1-21 First American Treasury 08/31/2005 13,853.43 13,853.43 13,853.43 4.380 4.320 4.380
SYSCFD 03-1-3 CFD 03-1-3 First American Treasury 0.00 0.00 0.00 3.340 3.294 3.340
SYSCFD 03-1-5 CFD 03-1-5 First American Treasury 4.30 4.30 4.30 4.420 4.359 4.420
SYSCFD 03-1-6 CFD 03-1-6 First American Treasury 770.06 770.06 770.06 4.380 4.320 4.380
Portfolio TEME
CP
Run Date 06/28/2006-1652 PM (PRF _PM2) SymRept 6.41.202a
ReportVer.5.00
City of Temecula, California
Portfolio Management Page 3
Portfolio Details - Investments
May 31, 2006
Average Purchase Stated YTM YTM Days to Maturity
CUSIP Investment # Issuer Balance Date Par Value Market Value Book Value Rate 360 365 Maturity Date
Managed Pool Accounts
SYSCFD 03-1-8 CFD 03-1-8 First American Treasury 528,387.71 528,387.71 528,387.71 4.380 4.320 4.380
SYSCFD 88-12-1 CFD 88-12-1 First American Treasury 331.15 331.15 331.15 4.380 4.320 4.380
SYSCFD 88-12-3 CFD 88-12-3 First American Treasury 14,938.87 14,938.87 14,938.87 4.380 4.320 4.380
SYSCFD 88-12-5 CFD 88-12-5 First American Treasury 2.17 2.17 2.17 4.610 4.547 4.610
SYSRDA TABS-1 RDA TABs-1 First American Treasury 151.23 151.23 151.23 4.380 4.320 4.380
SYSRDA TABS-3 RDA TABs-3 First American Treasury 0.00 0.00 0.00 2.300 2.268 2.300
SYSTCSD COPS-1 TCSD COPs-1 First American Treasury 185.89 185.89 185.89 4.380 4.320 4.380
SYSTCSD COPS-2 TCSD COPs-2 First American Treasury 0.00 0.00 0.00 4.090 4.034 4.090
SYSRDA TABS-2 RDA TABs-2 MBIA Surety Bond 1.00 1.00 1.00 2.190 2.160 2.190
---
Subtotal and Average 52,092,832.01 52,093,283.88 52,093,283.88 52,093,283.88 4.320 4.380
Letter of Credit
09652213 02006 Citibank, N.A. 04/07/2006 1.00 1.00 1.00 0.000 0.000
CA 2006-012 02005 Ohio Savings Bank 04/05/2006 1.00 1.00 1.00 0.000 0.000
---
Subtotal and Average 2.00 2.00 2.00 2.00 0.000 0.000
Local Agency Investment Funds
SYSCFD 03-03-10 CFD 03-03-10 CA Local Agency Investment Fun 3,828,208.54 3,828,208.54 3,828,208.54 4.563 4.500 4.563
SYSCFD 03-03-12 CFD 03-03-12 CA Local Agency Investment Fun 10,459,325.30 10,459,325.30 10,459,325.30 4.563 4.500 4.563
SYSCFD 03-03-4 CFD 03-03-4 CA Local Agency Investment Fun 12.80 12.80 12.80 4.563 4.500 4.563
SYSCFD 03-03-8 CFD 03-03-8 CA Local Agency Investment Fun 4,039,289.40 4,039,289.40 4,039,289.40 4.563 4.500 4.563
SYSCFD 03-06-4 CFD 03-06-4 CA Local Agency Investment Fun 02/08/2006 1,756,634.24 1,756,634.24 1,756,634.24 4.563 4.500 4.563
SYSCFD 03-1-11 CFD 03-1-11 CA Local Agency Investment Fun 1,340,510.66 1,340,510.66 1,340,510.66 4.563 4.500 4.563
SYSCFD 03-1-22 CFD 03-1-22 CA Local Agency Investment Fun 02/08/2006 3,395,404.06 3,395,404.06 3,395,404.06 4.563 4.500 4.563
SYSCFD 03-1-7 CFD 03-1-7 CA Local Agency Investment Fun 1,001,954.13 1,001,954.13 1,001,954.13 4.563 4.500 4.563
SYSCFD 03-1-9 CFD 03-1-9 CA Local Agency Investment Fun 6,222.87 6,222.87 6,222.87 4.563 4.500 4.563
SYSCITY CITY CA Local Agency Investment Fun 33,607,482.78 33,526,571.42 33,607,482.78 4.563 4.500 4.563
SYSRDA RDA CA Local Agency Investment Fun 2,035,322.30 2,030,422.18 2,035,322.30 4.304 4.245 4.304
SYSRDA TABS-4 RDA TABs-4 CA Local Agency Investment Fun 0.00 0.00 0.00 2.967 2.926 2.967
SYSTCSD TCSD CA Local Agency Investment Fun 12,127,890.43 12,098,692.05 12,127,890.43 4.563 4.500 4.563
SYSTCSD COPS-3 TCSD COPs-3 CA Local Agency Investment Fun 0.00 0.00 0.00 3.324 3.278 3.324
---
Subtotal and Average 61,578,902.67 73,598,257.51 73,483,247.65 73,598,257.51 4.493 4.556
Federal Agency Callable Securities
31339YGQ9 01004 Federal Home Loan Bank 07/24/2003 1,000,000.00 995,630.00 1,000,000.00 2.250 2.219 2.250 53 07/24/2006
31339YXP2 01005 Federal Home Loan Bank 08/14/2003 2,000,000.00 1,989,380.00 2,000,000.00 2.500 2.466 2.500 74 08114/2006
3133X55G9 01014 Federal Home Loan Bank 04/08/2004 3,050,000.00 2,946,117.00 3,050,000.00 3.100 3.058 3.101 586 01/08/2008
3133X52S6 01015 Federal Home Loan Bank 04/07/2004 2,965,000.00 2,859,386.70 2,965,000.00 3.000 2.960 3.001 585 01/07/2008
Portfolio TEME
CP
Run Date 06/28/2006-1652 PM (PRF _PM2) SymRept 6.41.202a
City of Temecula, California
Portfolio Management Page 4
Portfolio Details - Investments
May 31, 2006
Average Purchase Stated YTM YTM Days to Maturity
CUSIP Investment # Issuer Balance Date Par Value Market Value Book Value Rate 360 365 Maturity Date
Federal Agency Callable Securities
3133X55H7 01016 Federal Home Loan Bank 03/29/2004 3,000,000.00 2,895,000.00 3,000,000.00 3.000 2.960 3.001 575 12/2812007
3133X55H7 01017 Federal Home Loan Bank 03/29/2004 1,000,000.00 965,000.00 1,000,000.00 3.000 2.960 3.001 575 12/2812007
3133X5DV7 01018 Federal Home Loan Bank 04/14/2004 1,000,000.00 966,250.00 1,000,000.00 3.150 3.108 3.151 592 01/1412008
3133X5GE2 01019 Federal Home Loan Bank 04/15/2004 2,000,000.00 1,930,620.00 2,000,000.00 3.070 3.029 3.071 593 01/1512008
3133X5K49 01020 Federal Home Loan Bank 04/16/2004 1,000,000.00 965,940.00 1,000,000.00 3.125 3.083 3.126 594 01/16/2008
3133X5QF8 01021 Federal Home Loan Bank 04/22/2004 2,000,000.00 1,926,880.00 2,000,000.00 3.000 2.960 3.001 600 01/22/2008
3133X5ZL5 01022 Federal Home Loan Bank 04/30/2004 2,000,000.00 1,942,500.00 2,000,000.00 3.520 3.473 3.521 60B 01/30/2008
3133XAY84 01026 Federal Home Loan Bank 03/23/2005 1,000,000.00 988,130.00 999,750.00 3.850 3.810 3.863 295 03123/2007
3133XAZ91 01027 Federal Home Loan Bank 03/28/2005 1,000,000.00 990,940.00 999,750.00 3.785 3.750 3.802 210 12/28/2006
3133XBY66 01029 Federal Home Loan Bank 06/15/2005 2,000,000.00 1,985,620.00 2,000,000.00 4.000 3.781 3.833 197 12/15/2006
3133XCMC4 01032 Federal Home Loan Bank 08/31/2005 3,000,000.00 2,959,680.00 2,997,360.00 4.250 4.238 4.296 433 08108/2007
3133XCY31 01033 Federal Home Loan Bank 09/14/2005 960,000.00 948,604.80 960,000.00 4.380 4.320 4.380 470 09/14/2007
3133XD2G5 01034 Federal Home Loan Bank 09/21/2005 3,000,000.00 2,956,890.00 2,998,125.00 4.375 4.347 4.407 568 12/21/2007
3133XD3Q2 01035 Federal Home Loan Bank 09/28/2005 620,000.00 612,442.20 620,000.00 4.400 4.340 4.400 494 09/28/2007
3133XD3RO 01036 Federal Home Loan Bank 09/28/2005 2,000,000.00 1,968,760.00 2,000,000.00 4.500 4.438 4.500 666 03128/2008
3133XD6F3 01038 Federal Home Loan Bank 09/28/2005 1,000,000.00 983,440.00 1,000,000.00 4.230 4.174 4.232 575 12/28/2007
3133XD6D8 01039 Federal Home Loan Bank 09/29/2005 1,000,000.00 987,500.00 1,000,000.00 4.140 4.086 4.143 393 06129/2007
3133XDA84 01040 Federal Home Loan Bank 09/28/2005 1,000,000.00 993,440.00 1,000,000.00 4.200 4.147 4.204 210 12/28/2006
3133XDAB7 01041 Federal Home Loan Bank 09/29/2005 1,000,000.00 992,810.00 1,000,000.00 4.120 4.068 4.124 211 12/29/2006
3133XDBWO 01043 Federal Home Loan Bank 10/12/2005 1,000,000.00 995,940.00 1,000,000.00 4.050 3.995 4.050 133 10/12/2006
3133XDBQ3 01044 Federal Home Loan Bank 10/14/2005 1,000,000.00 993,440.00 1,000,000.00 4.250 4.196 4.255 223 01/10/2007
3133XDBX8 01045 Federal Home Loan Bank 10/12/2005 1,000,000.00 992,810.00 1,000,000.00 4.150 4.097 4.154 225 01/12/2007
3133XDB67 01046 Federal Home Loan Bank 10/12/2005 1,000,000.00 990,000.00 999,375.00 4.150 4.136 4.193 315 04/12/2007
3133XDKQ3 01047 Federal Home Loan Bank 11/09/2005 1,000,000.00 994,380.00 1,000,000.00 4.500 4.443 4.505 253 02/09/2007
3133XEG94 01053 Federal Home Loan Bank 01/26/2006 1,000,000.00 995,940.00 1,000,000.00 4.750 4.685 4.750 239 01/26/2007
3128XILW5 01002 Federal Home Loan Mtg Corp 06/30/2003 1,000,000.00 997,410.00 1,000,000.00 2.000 1.973 2.000 29 06130/2006
3128X3SM6 01025 Federal Home Loan Mtg Corp 03/07/2005 1,000,000.00 982,040.00 998,000.00 3.750 3.784 3.837 42B 08103/2007
3128X36R9 01030 Federal Home Loan Mtg Corp OS/24/2005 1,000,000.00 982,250.00 1,000,000.00 4.050 3.993 4.048 4BO 09/24/2007
3128X4NU1 01042 Federal Home Loan Mtg Corp 10/18/2005 1,000,000.00 987,240.00 1,000,000.00 4.375 4.315 4.375 504 10/18/2007
3136F6M63 01028 Federal National Mtg Assn 04/05/2005 1,000,000.00 988,750.00 1,000,000.00 4.000 3.945 4.000 30B 04/05/2007
---
Subtotal and Average 49,587,360.00 49,595,000.00 48,651,160.70 49,587,360.00 3.606 3.656 430
Treasury Coupon Securities
912795XN6 02003 U.S. Treasury 03/14/2006 99,000.00 97,385.06 97,385.06 4.350 8.747 8.869 56 07/27/2006
912828DT4 02004 U.S. Treasury 03/14/2006 725,000.00 711,635.66 711,635.66 3.750 4.586 4.650 714 05115/2008
---
Subtotal and Average 809,020.72 824,000.00 809,020.72 809,020.72 5.087 5.158 635
Run Date 06/28/2006-1652
Portfolio TEME
CP
PM (PRF _PM2) SymRept 6.41.202a
City of Temecula, California
Portfolio Management
Portfolio Details - Investments
May 31, 2006
Page 5
Average Purchase Stated YTM YTM Days to Maturity
CUSIP Investment # Issuer Balance Date Par Value Market Value Book Value Rate 360 365 Maturity Date
Federal Agency Bullet Securities
31331 SYN7 01031 Federal Farm Credit Bank 06/01/2005 1,000,000.00 985,310.00 1,000,000.00 3.820 3.768 3.820 365 06/0112007
31331 S5Y5 01037 Federal Farm Credit Bank 09/16/2005 1,000,000.00 988,440.00 1,000,000.00 4.000 3.947 4.002 319 04/1612007
3133XE2VO 01050 Federal Home Loan Bank 12/29/2005 1,000,000.00 997,810.00 1,000,000.00 4.625 4.562 4.625 120 09/2912006
3133XE5U9 01051 Federal Home Loan Bank 12130/2005 1,000,000.00 999,380.00 1,000,000.00 4.500 4.438 4.500 29 06/3012006
3133XE7H6 01052 Federal Home Loan Bank 12/29/2005 1,000,000.00 997,810.00 1,000,000.00 4.650 4.586 4.650 120 09/29/2006
---
Subtotal and Average 6,483,870.97 5,000,000.00 4,968,750.00 5,000,000.00 4.260 4.319 191
Investment Contracts
SYSCFD 03-1-4 CFD 03-1-4 American International Group M 04/28/2004 863,900.00 863,900.00 863,900.00 4.830 4.764 4.830 9,953 08131/2033
SYSCFD 03-03-5 CFD 03-03-5 IXIS Funding Corp 07/28/2004 2,171,120.00 2,171,120.00 2,171,120.00 3.000 2.959 3.000 10,318 08131/2034
SYSCFD 88-12-2 CFD 88-12-2 IXIS Funding Corp 07/24/1998 500,000.00 500,000.00 500,000.00 5.430 5.499 5.575 4,110 09/01/2017
SYSCFD 88-12-4 CFD 88-12-4 IXIS Funding Corp 07/24/1998 1,531,468.76 1,531,468.76 1,531,468.76 5.430 5.509 5.585 4,110 09/01/2017
---
Subtotal and Average 5,066,488.76 5,066,488.76 5,066,488.76 5,066,488.76 4.288 4.348 7,767
Total and Average 178,062,198.08 186,177,032.15 185,071,953.71 186,154,412.87 4.199 4.257 334
Run Date 06/28/2006-1652
Portfolio TEME
CP
PM (PRF _PM2) SymRept 6.41.202a
City of Temecula, California
Portfolio Management
Portfolio Details - Cash
May 31, 2006
Page 6
Average Purchase Stated YTM YTM Days to
CUSIP Investment # Issuer Balance Date Par Value Market Value Book Value Rate 360 365 Maturity
Retention Escrow Account
SYSRJ NOBLE RJ NOBLE Bank of Sacramento 0.00 0.00 0.00 1.250 1.233 1.250
SYSBARNHART1 BARNHART 1 California Bank & Trust 639,482.44 639,482.44 639,482.44 3.000 2.959 3.000
SYS EDGE DEVELO EDGE DEV1 California Bank & Trust 08/04/2005 567,093.09 567,093.09 567,093.09 1.250 1.233 1.250
SYSRIV CONST 1 RIV CONST 1 Community National Bank 0.00 0.00 0.00 3.000 2.959 3.000
Passbook/Checking Accounts
SYSPetty Cash Petty Cash City of Temecula 07/01/2005 2,210.00 2,210.00 2,210.00 0.000 0.000
SYSFlex Ck Acct Flex Ck Acct Union Bank of California 07/01/2005 5,944.21 5,944.21 5,944.21 0.000 0.000
SYSGen Ck Acct Gen CkAcct Union Bank of California 07/01/2005 1,187,989.47 1,187,989.47 1,187,989.47 0.000 0.000
OLD TOWN CK ACC OLD TO\NN CHK Union Bank of California 01/01/2006 37,912.45 37,912.45 37,912.45 0.000 0.000
SYSParking Ck Parking Ck Union Bank of California 07/01/2005 11,924.75 11,924.75 11,924.75 0.000 0.000
Average Balance 0.00
Total Cash and Investmentss 178,062,198.08 188,629,588.56 187,524,510.12 188,606,969.28 4.199 4.257 334
Run Date 06/28/2006-1652
Portfolio TEME
CP
PM (PRF _PM2) SymRept 6.41.202a
Cash and Investments Report
CITY OF TEMECULA
Through May 2006
001 GENERAL FUND
100 STATE GAS TAX FUND
101 STATE TRANSPORTATION FUND
120 DEVELOPMENT IMP ACT FUND
140 COMMUNITY DEV BLOCK GRANT
150 AB 2766 FUND
160 AB 3229 COPS
165 RDA DEV LOW/MOD 20% SET ASIDE
170 MEASURE A FUND
190 TEMECULA COMMUNITY SERVICES DISTRICT
192 TCSD SERVICE LEVEL "B" STREET LIGHTS
193 TCSD SERVICE LEVEL"C" LANDSCAPE/SLOPE
194 TCSD SERVICE LEVEL "D" REFUSE/RECYCLING
195 TCSD SERVICE LEVEL "R" STREET/ROAD MAINT
196 TCSD SERVICE LEVEL "L" LAKE PARK MAINT.
197 TEMECULA LIBRARY FUND
210 CAPITAL IMPROVEMENT PROJECT FUND
261 CFD 88-12 ADMIN EXPENSE FUND
271 CFD 01-2 HARVESTON IMPROVEMENT FUND
273 CFD 03-1 CROWNE HILL IMPROVEMENT FUND
274 AD 03-4 JOHN WARNER IMPROVEMENT FUND
275 CFD 03-3 WOLF CREEK IMPROVEMENT FUND
276 CFD 03-6 HARVESTON 2 IMPROVEMENT FUND
277 CRD - RORIP AUGH
280 REDEVELOPMENT AGENCY - CIP PROJECT
300 INSURANCE FUND
310 VEHICLES FUND
320 INFORMATION SYSTEMS
330 SUPPORT SERVICES
340 FACILITIES
380 RDA 2002 TABS DEBT SERVICE
390 TCSD 2001 COP'S DEBT SERVICE
460 CFD 88-12 DEBT SERVICE FUND
470 CFD 01-2 HARVESTON DEBT SERVICE FUND
471 CFD 98-1 WINCHESTER HILLS DEBT SERVICE
473 CFD 03-1 CROWNE HILL DEBT SERVICE FUND
474 AD 03-4 JOHN WARNER ROAD DEBT SERVICE
475 CFD 03-3 WOLF CREEK DEBT SERVICE FUND
476 CFD 03-6 HARVESTON 2 DEBT SERVICE FUND
477 CRD - RORIPAUGH
Grand Total:
Fund Total
45,135,099.37
143,517.03
294,816.10
10,588,744.10
25.83
290,356.01
1,645.55
12,671,055.68
5,769,134.56
1,635,064.22
245,952.09
415,777.03
2,080,145.89
30,620.50
394,572.04
0.00
13,481,561.53
43,666.77
2,925,069.11
6,288,065.29
71,418.37
18,341,130.44
1,759,323.41
40,197,037.11
701,612.38
1,282,063.19
654,552.94
809,601.00
228,685.17
114,537.07
3,287,976.24
6,962.11
4,250,188.61
1,808,329.71
0.00
1,904,208.14
208,868.04
3,629,035.61
565,703.50
5,268,388.38
$ 187,524,510.12
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ITEM NO.4
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Approvals
City Attorney
Director of Finance
City Manager
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CITY OF TEMECULA
AGENDA REPORT
TO:
City Manager/City Council
FROM:
William G. Hughes, Director of Public Works/City Engineer
DATE:
July 11,2006
SUBJECT:
Grant of Easement to Rancho California Water District for the Installation of a
Groundwater Monitoring Well within Pala Community Park
PREPARED BY:
Ronald J. Parks, Deputy Director of Public Works
Steve Charette, Associate Engineer
RECOMMENDATION:
That the City Council:
1. Adopt a resolution entitled:
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
TEMECULA APPROVING A GRANT OF EASEMENT WHEREBY
CITY GRANTS TO RANCHO CALIFORNIA WATER DISTRICT AN
EASEMENT FOR RIGHT OF ACCESS TO A PROPOSED
GROUNDWATER MONITORING WELL AT PALA COMMUNITY
PARK
2. Direct City Clerk to forward the approved Grant of Easement to Rancho
California Water District for their acceptance and recordation.
BACKGROUND: Rancho California Water District (RCWD), in behalf of the United
States Geological Survey (USGS), is proposing to install a groundwater monitoring well located
within Pala Community Park for the purpose of monitoring long term water quality within the
Temecula Valley. The well's proximity to the confluence of the Temecula Creek and the Santa
Margarita River will provide the opportunity to correlate well data to surface water quality. The data
also will serve to improve a mathematical ground-water flow model of the area, which presently is
being used to manage the water resources of the valley. The well will be funded jointly by the
Rancho California Water District and Camp Pendleton and will be operated and maintained by the
USGS.
The USGS has completed hundreds of wells in similar park s.ettings throughout southem Califomia.
Parks have proven ideal locations for these monitoring wells because they are not likely to be
disturbed or redeveloped. The well will need to be in use for 40-plus years. The well will be
accessed occasionally, perhaps as often as monthly to retrieve data from loggers installed in the
vault. The well will consist of five separate 2-inch diameter PVC pipes each installed to separate
depths to a maximum of 1000 feet. The concrete vault enclosing the well will be 3 feet wide by 5
feet long by 2 feet deep with a steel lid (See Figure 1). Inside the vault will be batteries, cables, and
data loggers.
The vault location for the well will require a small easement adjacent to an existing RCWD
easement. The easement area needed is 20 feet long by 10 feet in width. The vault will be
situated within a planter area at the west side of the parking lot (See Figure 2). TCSD staff has
concurred and agreed that the proposed location is appropriate and would not adversely impact use
and maintenance of the park.
The attached documents grant an easement and perpetual right-of-way to RCWD for the
groundwater monitoring well and appurtenant structures as described in the legal description.
FISCAL IMPACT:
None
ATTACHMENTS:
1. Resolution No. 2006_
2. Figure 1 - Location of Proposed Well
3. Figure 2 - Photograph of Typical Well Vault
4. Grant of Easement Deed
5. Legal Description labeled Exhibit "A" and Plat labeled Exhibit "B"
RESOLUTION NO. 06-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF TEMECULA APPROVING A GRANT OF EASEMENT
WHEREBY CITY GRANTS TO RANCHO CALIFORNIA
WATER DISTRICT AN EASEMENT FOR RIGHT OF
ACCESS TO A PROPOSED GROUNDWATER
MONITORING WELL AT PALA COMMUNITY PARK
THE CITY COUNCIL OF THE CITY OF TEMECULA DOES RESOLVE, DETERMINE
AND ORDER AS FOLLOWS:
WHEREAS, Rancho California Water District (RCWD), in behalf of the United
States Geological Survey (USGS), has proposed the installation of a ground-water
monitoring well within Pala Community Park; and
WHEREAS, a monitoring well located near the confluence of the Temecula
Creek and the Santa Margarita River will provide the ability for USGS to monitor long
term water quality and serve to improve the mathematical ground-water flow modeling
within the Temecula Valley; and
WHEREAS, Pala Community Park provides an ideal location for the well
because a park is not likely to be disturbed or redeveloped over the long-term; and
WHEREAS, Rancho California Water District requires a grant of an easement in
order to provide access and maintain said monitoring well and appurtenant structures;
and,
WHEREAS, the City Council of the City of Temecula hereby desires to grant to
Rancho California Water District an easement to access and maintain the monitoring
well site described in Exhibit "A" and shown in Exhibit "B" attached hereto.
THEREFORE, BE IT RESOLVED, that the City Council approved that certain
'Grant of Easement' attached hereto as Exhibit 1 and authorizes the Mayor to execute
the Grant Easement on behalf of the City.
PASSED, APPROVED, AND ADOPTED by the City Council of the City of
Temecula this 11th day of July, 2006.
Ron Roberts, Mayor
ATTEST:
Susan W. Jones, MMC
City Clerk
[SEAL]
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss
CITY OF TEMECULA )
I, Susan W. Jones, MMC, City Clerk of the City of Temecula, do hereby certify that
the foregoing Resolution No. 06- was duly and regularly adopted by the City Council of
the City of Temecula at a meeting thereof held on the 11th day of July, 2006, by the
following vote:
AYES:
NOES:
COUNCIL MEMBERS:
COUNCIL MEMBERS:
ABSENT:
COUNCIL MEMBERS:
ABSTAIN:
COUNCIL MEMBERS:
Susan W. Jones, MMC
City Clerk
Figure 1. General area of proposed USGS monitoring well in Pala Community Park,
Temecula, California.
. CALIFORNIA WATeR DISTRICT
:a::P'.tREOBY:
..:::;::.. Planf)lr'ISlaMCtlp.t1JIPrQjEoCtIi
~ G!!ogrl':lPh..~Ir1rClrmlllio!lSe"'lCl!$
n,~, ".~._,,,,,_
_.:If__-_.C"._.lHflill~
I ~~CT
Woff Valley
Monitoring Well
IJIIIIIJ re
C"UIlQlIlV...'<t'oII..... ~
AIlEPNlf:DIlV
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Figure 2. Photograph showing vault at the El Toyon multiple-depth well site, National
City, California.
t= /(;.u. R t: 2.
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EXHIBIT "A
LEGAL DESCRIPTION
BEING PORTIONS OF LOTS 88 AND 89 OF TRACT 21067 RECORDED IN BOOK 231, PAGES 41
THROUGH 48 INCLUSIVE OF MAPS, OFFICAL RECORDS OF RIVERSIDE COUNTY,
CALIFORNIA, DESCRIBED AS FOLLOWS:
COMMENCING ON THE NORTHERLY RIGHT OF WAY LINE OF CANTERFIELD DRIVE AS
SHOWN ON SAID MAP, AT THE COMMON CORNER OF LOTS 34 AND 88 OF SAID MAP;
THENCE, ON THE COMMON LINE OF SAID LOTS 34 AND 88 NORTH 03024'06" EAST 115.44
FEET TO THE NORTHERLY COMMON CORNER OF SAID LOTS 34 AND 88, SAID POINT
BEING COMMON WITH THE SOUTHERLY LINE OF SAID LOT 89 AND THE BEGINNING OF A
NON-TANGENT CURVE CONCAVE NORTHERL Y, HAVING A RADIUS OF 5500.00 FEET, TO
WHICH A RADIAL LINE BEARS SOUTH 02040'36" WEST;
THENCE, EASTERLY ON THE COMMON LINE OF SAID LOTS 88 AND 89 AND ON SAID
CURVE THROUGH A CENTRAL ANGLE OF 0046'01" AN ARC LENGTH OF 73.61 FEET TO THE
TRUE POINT OF BEG....l I... IG;
THENCE, LEAVING SAID LINE, SOUTH 12046'21" EAST, 9.88 FEET;
THENCE, SOUTH 8700 I '09" EAST 10.00 FEET;
THENCE, NORTH 12046'21" WEST 20.00 FEET TO THE SOUTHERLY SIDELINE OF THE
ENDING COURSE OF PARCEL I AS DESCRIBED IN DOCUMENT NO 2006-
THENCE, ON SAID SOUTHERLY SIDELINE NORTH 87"01 '09" WEST 10.00 FEET;
THENCE, LEAVING SAID SIDELINE, SOUTH 12046'21" EAST, 10.12 FEET TO THE TRUE
POINT OF BEGINNING;
CONTAINING: 192 SQ. FT., MORE OR LESS.
SEE PLAT ATTACHED HERETO FOR REFERENCE ONLY.
-
06024 RCWD EASEMENT. doc
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TR 21067 \ I 10.00'
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DOCUMENTS
RECORDED \
JANUARY 18, 1994
AS DOC.# 018853 \
AND DOC. #
2006- \
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CANTERF/ELD DRIVE \
EXHIBIT
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~CLE ENGINEERING, INC.
.::. 41601 Date St. Murrieta, CA. 92562
Phone: 951.698.1830 Fax: 951.698.8656
DATE:4/05/06 I JOB NO. 06024.1021DRAWN BY:JM.
Recording Requested by
RANCHO CALIFORNIA W A"fER DISTIUCT
After Recordation Return to:
Rancho California Water District
42135 Winchester Road
Post Office Box 9017
Temecula, CA 92589-9017
Space Above This Line for Recorder's Use
GRANT OF EASEMENT
FOR VALUABLE CONSIDERATION, receipt of which is hereby acknowledged,
City ofTemecula, a Municipal Corporation
hereby GRANT(S) to RANCHO CALIFORNIA WATER DISTRIcr, a public corporation, a perpetual non-exclusive easement and
right-of-way for a monitoring well, together with incidental appurtenances, connections, and structures in, over, under, upon, along,
through, and across the real property situated in the County of Riverside, State ofCalifomia, hereinafter described:
See Exhibits "A" and "B", Attacbed and Made a Part Hereof
together with the right to grade and improve said right-of-way and to enter upon and to pass and repass over and along said strip ofland
for the construction, operation. and maintenance of the facilities to be constructed in said easements by the RANCHO CALIFORNIA
WATER DISTRICT.
It is understood and agreed that the easements and rights-of-way acquired herein are subject to the right of the owner, his successors and
assigns, to use the surface of the land within the boundary lines of said easements and rights-of-way to the extent that such use is
compabole with the full and free exercise of said easements and rights--of-way by the RANCHO CALIFORNIA W AlER DISTRICT;
provided; however, that no fences, block walls or other structures, or other improvements shall be constructed upon, over, and along said
easements and rights-of-way without firstobtaining the written consent oftbe RANCHO CALIFORNIA WATER DISTRICT.
No fill or paving of any nature sball be placed or maintained over the surface of the ground, nor shall any earth be removed from the cover
of said pipeline after construction, without first obtaining the written approval of the RANCHO CALIFORNIA WATER DISTRICf.
IN WITNESS WHEREOF, this instrument bas been executed this _ day of
2006.
CITY OF TEMECULA
CERTIFICATE OF ACCEPTANCE
This is !O certi:f)r that the interest in real property
C9nveyed by the deed or grant dated
2906 from
By:
Ron Roberts, Mayor
A TrEST:
to Rancho California Wa~ District, a public agency
and subdivision in the State of California, is hereby
accepted by order of the Wldersigned officer on behalf
of .the Board of Directors pursuant to the authority
conferred by Resolution No. 2004-5-2 of the Board of
Directors adopted on May 13, 2004 and the grantee
consents to recordation thereof by its duly authorized
officer;
By:
sUsan W. JOlles, MMC
City Clerk
APPROVED AS TO FORM:
DATED:
,2006
By:. fdi'4 -.-" - ~
te:::n:~II~ttO:::-P --
RANCHO CALIFORNIA WATER DISTRICT
By:
Brian J. Brady, General Manager
06\A W:lm\Grant of Ease men I City ofTemecula
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ITEM NO.5
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Approvals
City Attorney
Director of Finance
City Manager
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1112.
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CITY OF TEMECULA
AGENDA REPORT
TO:
City Manager/City Council
FROM:
William Hughes, Director of Public Works/City Engineer
DATE:
July 11, 2006
SUBJECT:
Approval of City/County Agreement for Improvements to Butterfield Stage Road
PREPARED BY:
Greg Butler, Principal Engineer
Carol A. Chiodo, Property Agent
RECOMMENDATION: That the City Council approve the City County Agreement for the
Widening of and Improvements to Butterfield Stage Road and authorize the Mayor to execute the
Agreement.
BACKGROUND: On November 26, 2002, the City of Temecula approved a
Development Agreement between the City and Ashby USA ("Developer") which provided a specific
plan for the development of the Roripaugh Ranch which included on-site and off-site public
infrastructure improvements. The Developer was required to use his best faith efforts to acquire the
properties required for the improvements to Butterfield Stage Road from the southern project
boundary to Rancho California Road which included portions of two properties required for the road
widening at the northeast corner of Butterfield Stage Road and Rancho California. The Developer
was unable to acquire these property rights and on August 23, 2005 the City entered into an
Agreement with the Developer for the acquisition of certain property rights in connection with the
road widening. These two properties lie within the unincorporated area of the County of Riverside.
Therefore, the City needed to obtain County authority to acquire properties outside of the City's
jurisdiction. On June 6, 2006 the County Board of Supervisors approved the City/County
Cooperative Agreement which allows for the City to acquire the needed property rights.
FISCAL IMPACT: There is no fiscal impact to the City per the Agreement on August 23,
2005 which requires the Developer to pay all costs necessary for the acquisition of the Property,
including, but not limited to, payments for land and improvements on the land, severance damages,
relocation assistance and benefits, attomey's fees, and other costs arising out of the City's
acquisition of the properties.
ATTACHMENTS:
City/County Agreement
~Jmtract No. ()~, OS ' OO~
"livers ide Co. Transportation
CITY - COUNTY AGREEMENT FOR THE WIDENING OF AND
IMPROVEMENTS TO BUTTERFIELD STAGE ROAD
THIS CITY-COUNTY AGREEMENT FOR THE WIDENING OF AND
IMPROVEMENTS, TO BUTTERFIELD STAGE ROAD ("Agreement") is made and
entered into as of U? - Le , 2006 by and between the CITY OF TEMECULA, a
municipal corporation of the State of California, hereinafter designated "CITY", and the
COUNTY OF RIVERSIDE, a public subdivision of the State of California, hereinafter
designated "COUNTY". The CITY and COUNTY are sometimes referred to
Collectively herein as the "Parties."
RECITALS
WHEREAS, Butterfield Stage Road is designated as an Arterial road in the City's
General Plan; and
WHEREAS, the CITY plans to cause certain improvements to Butterfield Stage
Road to be constructed, including installation of full-width paving, curb and gutter,
sidewalk, street lights, drainage facilities, signing and striping, utilities, and raised
landscaped medians ("Project"); and
WHEREAS, the Project is consistent with the CITY's General Plan and is necessary to
maintain an acceptable level of service on Butterfield Stage Road and to mitigate the
impacts of traffic from development in the vicinity of the Project; and
WHEREAS, the street improvement plans, as planned and designed for the
Project, are depicted on Exhibit "A" hereto, which is incorporated herein by this
reference; and
WHEREAS, segments of the right of way for the proposed street improvements
are within the CITY and COUNTY jurisdictions; and
WHEREAS, the Parties acknowledge that the CITY, acting as the Temecula
Public Finance Authority (the "TPF A"), has formed a Community Facilities District
("CFD") for the purpose of providing a means of fmancing the construction and/or
acquisition of certain streets, related drainage improvements, and park facilities to be
owned and maintained by the CITY and certain street and related drainage improvements
to be owned and maintained by the COUNTY; and
WHEREAS, the Mello-Roos Community Facilities Act of 1982 (the" Act")
(commencing with Section 53311 of the California Government Code ("Gov. Code")
provides that the CFD may finance County Facilities only pursuant to a joint community
facilities agreement adopted pursuant to Gov. Code Sections 53316.2, 53316.4 and
53316.6; and
WHEREAS, the COUNTY, the CITY, and the TPF A entered into a Joint
Community Facilities Agreement on November 1, 2004 ("JCF A") as required by the
1
II 086.0627/878659.1
JUN - 6 2006 3.51
aforementioned sections of the Gov. Code and said JCFA is incorporated herein by this
reference; and
WHEREAS, a portion of the street right of way needed for the Project was
acquired by the COUNTY pursuant to the Certificate of Dedication recorded on
December 26,1973 as Instrument No. 165950 of Official Records of the County of
Riverside, which was accepted by the COUNTY pursuant to County Resolution 94-325;
and
WHEREAS, the County did not accept the 2: I slope easements referenced in
Instrument No. 165950 pursuant to County Resolution No. 94-325; and
WHEREAS, the construction ofthe Project, as planned and located, requires the
acquisition of certain property interests from two assessor parcel numbers located in the
COUNTY's jurisdiction; and
WHEREAS, the realp'vp"';Y interests needed for the Project include a grading
easement from the property commonly known as 41351 Armada Drive, Temecula, and
identified as Assessor's Parcel Number 943-090-017, and a grading easement and
retaining wall easement from the real property commonly known as 41333 Armada
Drive, Temecula, and identified as Assessor's Parcel Number 943-090-016, which are
located in the COUNTY's jurisdiction (referred to hereafter as "subject property
interests"), the legal descriptions of which are attached hereto collectively as Exhibit "B"
and incorporated herein by this reference; and
WHEREAS, Section 1810 of the California Streets and Highways Code
authorizes a city to "acquire, by purchase or eminent domain, property outside its
boundaries in the unincorporated area of the county in which the city is located, if it is
necessary to connect or widen the existing streets of the acquiring city and if the county
consents" to the acquisition; and
WHEREAS, the parties acknowledge that the street improvements for the Project
would widen and improve Butterfield Stage Road consistent with Section 1810 ofthe
Streets and Highways Code; and
WHEREAS, the CITY agrees to have independent appraisals prepared for the
subject property interests, and agrees to review and approve the appraisals and set just
compensation pursuant to Government Code Section 7260 et seq., and to extend statutory
offers to the record owners of the Subject Property Interests pursuant to Government
Code Section 7267.2; and
WHEREAS, the CITY agrees to negotiate in good faith with the record owners of
the subj eet property interests in an effort to acquire the necessary property interests by
negotiated agreement; and
2
11086.0627/878659.1
WHEREAS, the CITY and COUNTY acknowledge that if the CITY is not able to
reach an agreement with the property owners for the acquisition of the subject property
interests, CITY staff will recommend to the City Council that it consider adopting
resolutions of necessity pursuant to Code of Civil Procedures section 1230.010, et seq., to
acquire the subject property interests by eminent domain; and
WHEREAS, the CITY and COUNTY acknowledge that this Agreement is neither
a commitment nor an announcement of an intent by CITY to acquire by eminent domain
any or all of the property interests affected by the Project and that only the Governing
Body ofthe CITY, in the exercise of its discretion, can determine after public hearing
whether the CITY will adopt a Resolution of Necessity to acquire the subject property
interests by eminent domain.
NOW, THEREFORE, it is mutually agreed by and between CITY and
COUNTY as follows:
1. The Recitals set forth above are incorporated herein by this reference.
2. The work to be performed on the Project includes, but is not limited to,
appraisal preparation, correspondence, negotiations and acquisition offers for right of
way and related easements, environmental analysis, acquisition of all property needed for
the Project, preparation of plans and engineering in connection with the Project, public
meetings, and construction of the proposed improvements to and widening of Butterfield
Stage Road described above.
3. Pursuant to Streets and Highways Code section 1810, the COUNTY
concurs with the CITY's proposed acquisition of the subject property interests within the
COUNTY's jurisdiction, shown on the Street Improvement Plans attached as Exhibit "A"
hereto. Pursuant to Section 1810 of the Streets and Highways Code, the COUNTY shall
accept as set forth in the JCF A all right-of-way acquisitions necessary for completion of
the Project, deemed to be environmentally free of hazardous materials, within the
COUNTY's jurisdiction, executed by the CITY in its capacity as lead agency for
COUNTY.
4. CITY and COUNTY agree there will be no COUNTY participation in the
cost, the work performed on the Project as described in paragraph 1 above, or the
physical construction of the proposed widening of and improvements to Butterfield Stage
Road.
5. If the CITY causes construction of the Project, CITY, as lead agency, shall
be responsible and shall render all decisions for the completion of all duties concerning
right of way, related easements, and construction ofthe Project within the CITY and
COUNTY jurisdictions. The parties acknowledge that having the CITY act as lead
agency on this Project will facilitate the coordination and construction of the Project.
This shall not impact the COUNTY's right under the JCFA to inspect and approve the
work pursuant to the JCF A or its acceptance of the facilities in its jurisdiction pursuant to
the JCFA.
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11 086.0627/878659.1
a. CITY warrants to COUNTY that if it causes the construction ofthe
Project, it shall cause the completion ofthe construction in the COUNTY jurisdiction
as shown on the plans attached as Exhibit "A" hereto, which as of the date ofthis
Agreement have been preliminarily approved by the COUNTY's Transportation and
Land Management Agency and which are on file in the CITY's Public Works
Department. The COUNTY will give final approval to these plans after certain
easements are recorded by Ashby USA, LLC pursuant to the JCF A. CITY agrees that
it will not cause the physical construction of the Project to be commenced until the
COUNTY gives final approval to the plans. These plans are referred to hereafter as
the "approved Project plans."
b. The Parties agree that the COUNTY shall be entitled to review and
comment on any modifications to the approved Project plans proposed by the City
after the date of this Agreement. CITY Agrees to provide to the Director of the
COUNTY Transportation and Land Management Agency, a copy of any proposed
modifications to the approved Project plans at least ten business days prior to the
intended approval by the CITY Director of Public Works.
c. If the COUNTY requests changes to the CITY's proposed modifications
described in paragraph 4(b) above, the CITY Engineer, or his Designee, and the
COUNTY Engineer, or his Designee, shall meet to identify reasonably feasible means
to incorporate the COUNTY's proposed modifications into such modified plans.
CITY agrees to incorporate all requested modifications deemed reasonable by the
CITY Engineer and COUNTY Engineer for portions of the Project lying in the
unincorporated area of the COUNTY.
6. The parties agree that the COUNTY may make periodic inspections of all
Project work performed in the unincorporated area of COUNTY. Upon completion of
the project consistent with the approved Project plans, the COUNTY will accept the
roadway improvements in the unincorporated area for public roadway purposes pursuant
to the terms of the JCFA.
7. CITY warrants to COUNTY that if the CITY causes construction of the
Project, the letting of said contract or contracts and construction of the Project shall be
completed pursuant to the JCF A.
8. CITY warrants to COUNTY that ifthe CITY causes the construction of
the Project, the contractor or contractors for the construction herein will be required to
furnish a Faithful Performance Bond and a Labor and Materials Bond pursuant to the
JCF A. Said contract or contracts will be required by CITY to carry sufficient public
liability, property damage, and Workers' Compensation Insurance pursuant to the JCFA.
9. COUNTY shall not be liable or responsible for, and CITY hereby
expressly promises to defend and hold COUNTY harmless from any injury, damage, or
loss suffered, sustained, or claimed as a result of CITY's acts or omissions under this
Agreement.
4
11086.0627/878659.1
10. The parties may terminate this Agreement upon providing thirty (30) days
written notice to the other party mailed by first-class mail and addressed as follows:
a. CITY: William G. Hughes, Director of Public Works/
City Engineer
City of Temecula
43200 Business Park Drive
Post Office Box 9033
Temecula, California 92589-9033
With a copy sent to Peter M. Thorson, City Attorney, addressed as
follows:
Peter M. Thorson, City Attorney
Richards, Watson & Gershon
355 South Grand Avenue, 40th Floor
Los Angeles, California 90071-3101
b. COUNTY: Tony Carstens, Director of Riverside County
Transportation and Land Management Agency
4080 Lemon Street, 14th Floor
Post Office Box 1605
Riverside, California 92502-1605
With a copy sent to Joe S. Rank, County Counsel, addressed as follows:
Joe S. Rank, County Counsel
County of Riverside
3535 10th Street, 3rd Floor
Riverside, California 92501-3674
Execution ofthe foregoing Agreement has been authorized by Resolution No.
duly passed by the City Council of the City ofTemecula on
. 2006 and by Resolution No. , duly passed by the
Board of Supervisors of the County of Riverside, State of California, on
,2006.
IN WITNESS WHEREOF, this agreement has been executed by the respective
parties hereto through their respective authorized officers in Riverside County, the day
and year first above written.
5
11 086.0627/878659.1
COUNTY OF RIVERSIDE,
political subdivision of the State
of California
pt19 :8t1Ak
By:
Robert A. Buster, Chairman
Riverside County Board of Supervisors
ATTEST:
ancy Romero
Clerk of the Riverside County
Board of Supervisors
Approved as to Form:
By:
,~S\I r._~
Joe S. Rank
County Counsel
Recommended for Approval:
BY~ ~~
r"/"- TonY Carstep{
Director offuverside County
Transportation and Land Management
Agency
6
CITY OF TEMECULA,
a municipal corporation
By:
Ron Roberts, Mayor
City of Temecula
ATTEST:
Susan Jones
City Clerk
Approved as to Form:
By:
Peter M. Thorson
City Attorney
Recommended for Approval
By:
William G. Hughes
Director of Public Works/
City Engineer
11086.0627/878659.1
01/24/2006 TUE 11:12 FAl 951 69~ 3929 City of Teaecula
i
~002l005
'.
Poge 1 of2
EXumIT "A"
LIMITS OF GRADINC EASEMENT
ThatportiODofParco13 ofParco1Map NO 10791 aspecmap reeordodinBook 57, P8B81 97 and Sl8 of
Parcel Maps in the office of the County Recorder of said County, beins: a portion of'V ol"t'no Pauba, in
thfl COllnty of Nlvmdfl, Statfl ofCahmmlll, ilMmibfllf AI': t""OWI'::
CODUDencIDg at the centerline interBeCtlon at Butlertielel Stap Road (110 tel:t wIele) and Rancho
Calttomla Road (110 teet wiele) as shown on said map:
'1"hcm:c alol1lthe ccmcrllne otButtcr1l.e14 StaiC Road. North 41039"1 ~ West 576.99 filet 10 the
WuIJlWOSIta ly prolon,galiol\ oCtile l\ortllwostOlly line of said Parcol3;
~ o1oDg said...., iL.."..{yprolonptioD, North 58019'48" .Eut55.21 foot to tho mofi 'lVoetcrly
oomec of IlIIid PlIRo13.lIlIid point boiu8 on the 0lIIIt line of IIlIid Butterfield ShtSe Rol1lf. said point lIlllO
beioa the TRUE POINT OF THE BEGINNING;
Theace along the north.. ,....._;y line of said Parcel 3, North 58019'48" East 90.08 teet;
Thence leaving ~aid northwesterly line, South ;4~"~~' 19" F.a.'It 1 08.SS feet;
Them'.. South 4'(":4:1'4'/" JIm 143.02 feet;
Thence South :4S"~~':~4"l'last 3:4.1)9 feet;
Thence SollLh 02037'22" Easl4l.18 file!;
Thcnco South 39031 '09" East 130.38 feet;
Thenoe South 15"27'21" Bast 72.11 feet to the ooutbllllllterly line ofoaid Poreel3, said Jloint I.\lso being 0.
point on the northlll'ly right of'wo.y of'said Rancho Clllif'omio. Roo.d;
theiace along said right of way the iOilowing 2 COt1rses:
I) South 58"12'20" West 5.29 feet;
2) Nwlh 81"'43'21" WCIIL 33.19 Cca:llu lhc tllIlI~ly ri!:hI-uC-wuy line uClllI.ill BuUedleld Slali\l:llWlId.
lIlIid puwL II1tiu b~ lhe wca;Lwly line ufllllid Pun:el 3;
Thcnoo along said casterl)' line ofBultomold Slago Road and wostorl)' line of sllid Ps:rco13, North
41039'51" West 499,49 foot to tho TRUE POINT OF BEGINNINC:
r,IAIAllIIDOOOS\IAipl DonripliomlSlopc: nu.......II"'lopc:..."" p1lr31'l1(10791.dOG
EXHIBIT "B"
01/24/2008 TUB 11:12 FAl 951 8~' 3929 City of Telecula
i
~003/005
Pas_:1 of2
All 811 shawn on K1Chihit "an attached herewith lll1d made a part hereof.
ThllllbQve dosorlbcd parcel C<lntains 37.627 square feet (O.Rfi4 8Ilrell), mnnlor IMS.
Semlll'd J. MehaJly, P.L.S. 7629
Bxpb:es 12131/06
Date:
P:\AIASHBOOOS\LcpJ Oolcrlpl!onR\!llllJl.lla..."ontoI.lnjlA ""COt por9 PM10?PI.doa
EXHIBIT "B"
,,~
~~
~i>fl
01/2(/2008 TOE 11:12 FAl 951 8~~ 3929 City of Teaecula
.~ . . \
T.~.OJl.
NO.
L1
L2
LJ
1.4 I
l5 I
L6 I
L1 I
L8 I
. I L9 I
I L10 I
or
PREPARED BY'
....V.WAN.
-A...OIAT..-
1IlII___.__
---
TIII.~t.INO.MX:-IVOD'JII~17
DATE: FEBRUARY 09.2005
BeRNARD J. UelNALL Y, PloS 7629
l!XPIRES 12/31/006
~004/005
PAGE I OF' t
I BEARING
NSS. ''''4S''E
,
N5S- 19'4S"(
S35.55:,9"(
547- 33'47"E I
S35- 55'34"E I
502- 37'22"E I
S39" 31'09"E ,
S15- 21'21"E ,.
SSS- 12'20"W i .
N81.4J'21"W I
DIST ANCf;
55.21~
90.08'
108.55'
1'13.02'
33.09'
<1-1.1S'
130.38'
12.11'
5.29'
33.19'
" ~/
'{
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Vr"
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1'J~ '~~
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"\~:~~~'\~
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,/ ,
"'.. J/F'}"O
V', /- ~\;,.
/' ~~
,
,
PARCEL 3
PARCEL MAP NO. 10791
P.M.B. 57/97-98
L.EGEND
SCALE ;.
1".'00'
LIMITS OF GHAIlIN(;
POINT Of COMMENCEMENT
TRUE POINT OF' BEGINNING
AHbA= .H,fi?f 5,1'.
COUNTY OF RIVERSIDE
R,ANCHO PAU",A
f I
P.O.C.
T.P.O.B.
LIMITS OF GRADING
EASEMENT
Ol/W2008 ,TllE 11: 13 FAX 951 8'1 \m9 City of Telecula
.. ,
~005/005
EXHIBIT "B"
P^CE 2 OF" 2
MURRIETA
. HOT SPRINGS
I SPl'UNGS ROAD
MUHHlETA ~C1f
NOT TO SCALE
~ml
mil,
i ~ PROJECT
TEMECUlA L LOCATI.",
OAUFORNIJI \: ROAD
- \
VICINITY MAP
-' ....-
N.T.S.
PREPMED BY'
_"VI. WAN.
-......0.",...-
1IlII___-...
__tIlM
MlllGllOl147IO'I\IX:'-"'UlSf
DATE. FEBRUARY 09.2005
COUNTY OF RIVERSIDE
RANCHO PAUBA
LIMITS OF' GRADING
EASEMENT
Page lof2
EXHmIT "A"
GRADING EASEMENT
That portion of Parcel 2 of Parcel Map NO 10791 as per map recorded in Book 57, Pages 97 and
98 of Parcel Maps in the office of the County Recorder of said County, being a portion of
Rancho Pauba, in the City of Temecula, County of Riverside, State of California, described as
follows:
Commencing at the centerline intersection of Butterfield Stage Road (I 10 feet wide) and
Rancho California Road (110 feet wide) as. shown on said map:
Thence along the centerline of Butterfield Stage Road, North 41040'12" West 576.99 feet to the
southwesterly prolongation of the southeasterly line of said ParcelZ:
Thence along said southwesterly prolongation, North 58019'48" East 55.84 feet to the most
southerly comer of said Parcel 2, said point being on the east line of said Butterfield Stage Road,
said point also being the True Point of Beginning;
Thence along the southeasterly line of said Parcel 2, North 58019'48" East 82.56 feet to a line
parallel with and 82.56 feet northeasterly of the east line of said Butterfield Stage Road;
Thence leaving said southeasterly line along said parallel line, North 41040'12" West 13.50 feet;
Thence North 86031'36" West 38.14 feet;
Thence North 55046'43" West 39.95 feet:
Thence North 49052'15" West 150.94 feet;
Tha....,.... \.T^-....1.. 100A'l'nO" 't11est '1"1 ..to .&'................... 1:_... _~~_11...1 ....:...1.. __.:I 31::. 1<"\ ~__4. __.....__1_. _-C4.L_ _""...,'"
.......w......V'oI "'V.LU& ..." ~J vu n "JM,"TU J.liOiv\. \.V g LlUv !-'Q.l.Wlvl WJUl CU1U .J.l~ .lYC... vi:1o::iU;i11Y VL uu::: tii:USL
line of said Butterfield Stage Road;
Thence along said para1lelline, North41040'IZ" West 9.81 feet;
Thence North 86"24'15" West 20.81 feet;
Thence North 56'17'28" West 20.00 feet
Thence North 33003'06" West 38.75 feet to the northerly line of said Parcel 2:
Thence along said northerly line South 51"21'28" West 21.26 feet to the east line of said
Butterfield Stage Road;
Thence along said east line South 41040'12" East 327.69 feet to the True Point of Beginning;
P:\A\ASHB0005\DGN\PLATS\walllGrading easement.doc
EXHIJIIT "G"
.
.
All as shown on Exhibit "B" attached herewith and made a part hereof.
The above described parcel contains 11,982 square feet (0.275 acres), more or less.
This real property description has been prepared by me,
or under my direction, in confonnance with the Professional
Land Surveyors Act.
Bernard J. Mclnally, P.L.S.
Date:
P:\A\ASHB0005\DGN\PLATS\walI\Grading easement.doc
Page 2 of2
"
"
,
"
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/'~ "
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./A" ". Vo;.
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...." <.J-.
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17?".s'.> '\. <' O<:f:. ,
_Q2-~ <y /'
""0',9, ~ ~\.K'
~~ '\, ~~/
,lO ~ P.O.C.
'Ct.'/"
<(-..\:>-~/'"
/"
EXHIBIT "B"
I
'~
NO. BEARING
Ll N58019'48"E
L2 N58" 19'48"E
I L3 N41" 40'12"W
I L4 N8S" 51'3S"W
, L5 I N55" 46'43"W 1
I LS I N49" 52'15"W I
I L 7 j N19" 43'OS"W I
I LS I N41" 40'12"W 1
L9 I N8S" 24'15"W I
L 10 I N56"17'2S"W I
L 11 I N33003'OS"W I
I L 12 I 551" 21'2S"W I
SCAlE: 1".,00'
,
PARCEL 2
PARCEL MAP NO. 10791
P.MB. 57/97-98
LEGEND
I
LIMITS OF GRADING
bnl'
r.v.".
1":t^11.I'r ^r- l'^l'l't"'..."rl,,"UT
run, I vr \lVMMC...."C-MC.111
T.P.O.B.
TRUE POINT OF BEGINNING
AREA= 10.510 S.F.
PREPARED BY:
.
I DAVID EVAN8 ---.
AIlDA880CIATE8INO. F'lAND )\
800 North Haven Avenue, Suite 300 /1' ~
Ontario California 91764 1:1 ~
TEL: (909)481,s?SO' FAX: (909)481,s?57 ~ glltnlltd J. Ilo'nonv .~
DATE: FEBRUARY 09.2005 ... Exp. 12.31-06 )
. ~\.. No. _ 7620 ~*j
BERNARD J. MclNALL Y. PLS 7629 ~OF c#
EXPIRES 12131/2006 -
PAGE 10F 2
DIST ANCE
55.84'
82.5S'
13.50'
38.14'
39.95'
150.94'
32.49'
9.81'
20.S1'
20.00'
3S.75'
21.2S'
COUNTY OF RIVERSIDE
SECTIONS 28 AND 33
T7S. R2W
LIMITS OF GRADING
EXHIBIT "B"
PAGE 2 OF 2
"
J
MURRIETA
HOT SPRINGS
I SPRINGS
MURRIETA \,\01
~
NOT TO SCALE
ROAD
~~
ROAD i: a:
~5w
:~
ffiti PROJECT
TEMECULA / LOCATION
CAUFORN~ \ROAD
VICINITY MAP
N,T.S.
PREPARED BY:
.
I DAVID EVANS
ANDASSoCIATES INC.
800 North Haven Avenue, Suite 300
Ontario California 91764
TEL: (909)481-5750. FAX: (909)481-5757
COUNTY OF RIVERSIDE
SECTIONS 28 AND 33
ns. R2W
LIMITS OF GRADING
Page I of2
EXHIBIT "A"
RETAINING WALL EASEMENT
That portion of Parcel 2 of Parcel Map NO 10791 as per map recorded in Book 57, Pages 97 and
98 of Parcel Maps in the office of the County Recorder of said County, being a portion of
Rancho Pauba, in the City ofTemecula, County of Riverside, State of California, described as
follows:
Commencing at the centerline intersection of Butterfield Stage Road (110 feet wide) and
Rancho California Road (110 feet wide) as shown on said map;
Thence along the centerline of Butterfield Stage Road, North 41040'12" West 576.99 feet to the
southwesterly prolongation of the southeasterly line of said Parcel 2;
Thence along said southwesterly prolongation, North 58019'48" East 55.84 feet to the most
southerly comer of said Parcel 2, said point being on the east line of said Butterfield Stage Road,
said point also being the True Point of Beginning;
Thence along the southeasterly line of said Parcel 2, North 58019'48" East 82.55 feet to a line
paxallel with and 82.55 feet northeasterly of the east line of said Butterfield Stage Road;
Thence leaving said southeasterly line along said parallel line, North 41040'12" West 8.04 feet;
Thence North 86051 '36" West 44.90 feet;
Thence North 55046'43" West 39.95 feet;
Thence North 49052'15" West 147.48 feet;
Thence Nort..h 19043'08" West 41.07 feet to a line pa....allel \vith and 34.02 feet easterly of the east
line of said Butterfield Stage Road;
Thence along said parallel line, North 41040'12" West 5.97 feet;
Thence South 48019'48" West 34.02 feet to the east line of said Butterfield Stage Road;
Thence along said east line South 41040'12" East 254.13 feetto the True Point of Beginning;
All as shown on Exhibit "B" attached herewith and made a part hereof.
The above described parcel contains 9,333 square feet (0.214 acres), more or less.
P:IAIASHBOOOS\DGNlPLA TSlwalllRctaining wall easement.doc
.
"
,
Page 2 of2
This real property description has been prepared by me,
or under my direction, in confonnance with the Professional
Land Surveyors Act.
Bernard J. McInaIly, P.L.S.
Date:
P:\AIASHBOOOS\DGNlPLATSlwalllRetaining wall ...ementdoc
PREPARED BY:
.
I DAVID EVAN8 ~
-A880CIATI!8INO. FLAIIO ~
800 North Haven Avenue, Suite 300 f>t.~" ~
Ontario Cellfornla 91764 . I:J ~
TEL: (909)481-5750. FAX: (909)481-5757 ::!i 9"r....d J.llclno1lv i
DA TE: FEBRUARY 09. 2005 If Exp. 12-31-08
{);O' 7829-=iJ
BERNARD J. MclNALLY, PLS 7629 ~OF c,
EXPIRES 12/3112006 -
"
l
I NO. I
/L1
I L2
1L3
I L4 I
I L5 I
I L6 I
L7 I
I LS I
I L9 I
LEGENO
, ,
P.O.C.
T.P.O.B.
BEARING
N5S" 19'4S"E
N5B019'4S"E
N41" 40'12"W
N86051'36"W I
N550 46'43"W I
N49052'15"W I
N190 43'08"W I
N41040'12"W I
S48019'48"W I
EXHIBIT "B"
I
/
PAGE I OF 2
I DISTANCE
55.84'
82.55'
8.04'
44.90'
39.95'
147.48'
41.07'
5.97'
34.02'
~
"
'\.
,
<9 c:.>'
/\. \.
/~ '
~..<' ~
/~ \.. ,so..
( "f) c,c.; .1'0
0', "0.
.,<i \. ?"
S' '\. ('
~,
%- \., .{;..
\.
~O 'Y>-)-'; ("\~\) ./
;,;to ' ~v /
\. ~\\~ ,"/
'k ' .\~ ,,/
"?o.t~ 2-- X()~,,/'
,,"'ot~. '\ c,~'v:K
. ~.........___'.v"/
~\c,'0(),,/'~()'C.
~~\:-.../
,,/
SCALE: '".'00'
PARCEL 2
PARCEL MAP NO. 10791
P.MB. 57197-98
LIMITS OF EASEMENT
POINT OF COMMENCEMENT
TRUE POINT OF BEGINNING
AREA= 9,333 S.F.
COUNTY OF RIVERSIDE
SECTIONS 28 AND 33
T7S,R2W
RETAINING WALL
EASEMENT
.
EXHIBIT "B"
PAGE 2 OF 2
MURRIETA
HOT SPRINGS
MURRIETA ~01
NOT TO SCALE
ROAD
~g
~-~;
~t3 PROJECT
TEMECULA / LOCATION
CAlIFORNI6.. \ROAD
VICINITY MAP
N.T.S.
PREPARED BY'
.-
I DAVID EVANS
AMDASSoelATES IND.
800 North Haven Avenue, Suite 300
Ontarto Califomia 91764
TEL: (909)481-5750. FAX: (909)481-5757
COUNTY OF RIVERSIDE
SECTIONS 28 AND 33
T7S,R2W
RETAINING WALL
EASEMENT
+'0
o
-
\I
~:
<t
c.>
</l
.....
.0)
t-..
I~-- .
,
II
ITEM NO.6
II
,
II
-
"
"
I
I
I
II
II
__. . I
Approvals
City Attorney
Director of Finance
City Manager
~("
CIZ
~
CITY OF TEMECULA
AGENDA REPORT
TO:
City Manager/City Council
FROM:
Anthony Elmo, Director of Building and Safety
DATE:
July 11, 2006
SUBJECT:
Approve a fourth amendment for plan review services and a new agreement for
FY 2006/2007
PREPARED BY:
Diane Ball, Administrative Assistant
RECOMMENDATION: That the City Council approves:
1. A fourth amendment to the agreement for Consulting Services with Esgil Corporation for Plan
Check Services which includes an additional appropriation in the amount of $82,500 to complete
Fiscal Year 2005/2006.
2. An agreement for Consulting Services with Esgil Corporation to provide Plan Check Services for
Fiscal Year 2006/2007 in the amount of $375,000.
BACKGROUND: The Building and Safety Department has exceeded activity forecasts made
earlier this year due to the local and regional development related fees that will increase on July 1,
2006. Subsequently, the Professional Services Contract amount will be exceeded. This
amendment will provide the additional funds to compensate Esgil Corporation forthis additional plan
check work.
The city has enjoyed a productive and efficient plan review relationship with Esgil for the past twelve
(12) years. Esgil Corporation is the sole provider for our outside plan review services and continues
to provide an outstanding level of quality plan review, as well as meeting city commitments to our
customers for plan review turn around times. Due to the quality of services rendered by Esgil
Corporation the city staff wishes to continue this positive relationship without consideration of
additional potential consultants.
FISCAL IMPACT:
1. This appropriation request for Account Number 001-162-999-5248, "Consulting Services", is
supported by plan review fees off set by revenue already collected. No other funds are
necessary to subsidize this request.
2. Adequate funds are approved in Fiscal Year 2006/2007 Operating Budget Account Number 001-
162-99-5248, "Consulting Services" for this purpose.
ATTACHMENTS:
Fourth Amendment FY 2005/2006 and New Agreement FY 2006/2007
FOURTH AMENDMENT TO AGREEMENT BETWEEN
CITY OF TEMECULA AND ESGIL CORPORATION
THIS FOURTH AMENDMENT is made and entered into as of Julv 11 . 2006 by and
between the City of Temecula, a municipal corporation and Esgil Corporation. In
consideration of the mutual covenants and conditions set forth herein, the parties agree as
follows:
1. This Amendment is made with respect to the following facts and purposes:
A. On Julv 1. 2004 the City and Consultant entered into that certain
agreement entitled "City ofTemecula Agreement for Plan Review Services" ("Agreement")
in the amount of Two Hundred Thousand Dollars $200,000 plus a 10% contingency.
B. The contract was amended on June 28, 2005 and added an additional
One Hundred Forty Nine Thousand One Hundred Thirty Dollars ($149,130).
C. The contract was amended on April 25, 2006 and added an additional
one hundred fifty seven thousand ($157,000) plus a 10% contingency. The parties also
changed the terms of payment for services and amended the Agreement as set forth in this
Amendment.
D. The parties wish to amend the existing agreement by adding and
additional Eighty Two Thousand Five Hundred Dollars ($82,500).
2.
follows:
Section 4a. PAYMENT of the Agreement is hereby amended to read as
"A. The City agrees to pay Consultant monthly, in accordance with the
payment rates and terms and the schedule of payment set forth in Exhibit B, attached
hereto and incorporate herein by this reference as though set forth in full, based upon
actual time spent on the above tasks. This Fourth Amendment amount shall not exceed
eight two thousand five hundred dollars ($82,500) for a total contract amount of five
hundred eighty eight thousand six hundred thirty dollars ($588,630)."
3. Except for the changes specifically set forth herein, all other terms and
conditions of the Agreement shall remain in full force and effect.
Cl rHNDOrV7:.:l4n:DUC\NETTEMr\504:::\M;):c'rDF:::1L!ljl~'.DU(' 1
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed the day and year first above written.
CITY OF TEMECULA
BY:
Ron Roberts, Mayor
ATTEST:
BY:
Susan W. Jones, CMC, City Clerk
Approved As to Form:
BY:
Peter M. Thorson, City Attorney
CONSULTANT
BY:
NAME: Richard Esgate, President
Cl rHNDOrV7:.:l4n:DUC\NETTEMr\504:::\M;):c'rDF:::1L!ljl~'.DU(' 2
CITY OF TEMECULA
AGREEMENT
FOR CONSULTANT SERVICES
TIDS AGREEMENT, is made and effective as of July 1, 2006, between the City of Temecula, a
municipal corporation ("City") and Esgil Corporation, ("Consultant"). In consideration of the mutual covenants and
conditions set forth herein, the parties agree as follows:
1. TERM, This Agreement shall commence on July 1, 2006, and shall remain and continue in
effect until tasks described herein are completed, but in no event later than June 30, 2007, unless sooner terminated
pursuant to the provisions of this Agreement.
2. SERVICES. Consultant shall perform the tasks described and set forth in Exhibit A, attached
hereto and incorporated herein as though set forth in full. Consultant shall complete the tasks according to the schedule
of performance which is also set forth in Exhibit A
3. PERFORMANCE. Consultant shall at all times faithfully, competently and to the best of his
or her ability, experience, and talent, perform all tasks described herein. Consultant shall employ, at a minimum,
generally accepted standards and practices utilized by persons engaged in providing similar services as are required of
Consultant hereunuer in meeting its obligations unuer this Agreement.
4. PAYMENT,
a. The City agrees to pay Consultant monthly, in accordance with the payment rates and terms and the
schedule of payment as set forth in Exhibit B for a total amount of $3 75,000 00 Contractor will submit invoices monthly
for actual services performeu. Invoices shall be submitteu on or about the first business uay of eachrnonth, for services
provided in the previous month. Payment shall be made within thirty (31 I) days of receipt of each invoice.
5. SUSPENSION OR TERMINATION OF AGREEMENT WITHOUT CAUSE.
a. The City may at any time, for any reason, with or without cause, suspend or terminate this
Agreement, or any portion hereof, by serving upon the consultant at leastten (1 0) days prior written notice. Uponreceipt
of said notice, the Consultant shall immediately cease all work under this Agreement, unless the notice provides
otherwise. If the City suspends or terminates a portion of this Agreement such suspension or termination shall not make
void or invalidate the remainder of this Agreement.
b. In the event this Agreement is terminated pursuant to this Section, the City shall pay to
Consultant the actual value of the work performed up to the time of termination, provided that the work performed is of
value to the City Upon termination of the Agreement pursuant to this Section, the Consultant will submit an invoice to
the City pursuant to Section 3
6. DEFAULT OF CONSULTANT.
a. The Consultant's failure to comply with the provisions of this Agreement shall constitute a
default. In the event that Consultant is in default for cause under the terms of this Agreement, City shall have no
obligation or duty to continue compensating Consultant for any work performed after the date of default and can
terminate this Agreement immediately by written notice to the Consultant. If such failure by the Consultant to make
progress in the performance of work hereunuer arises out of causes beyonu the Consultant's control, anu without fault or
negligence of the Consultant, it shall not be considered a default.
b. If the City Manager or his delegate determines that the Consultant is in default in the
performance of any of the terms or conuitions of this Agreement, it shall serve the Consultant with written notice of the
default. The Consultant shall have (10) days after service upon it of said notice in which to cure the default by rendering
a satisfactory performance. In the event that the Consultant fails to cure its default within such period of time, the City
shall have the right, notwithstanding any other provision ofthis Agreement, to terminate this Agreement without further
notice and without prejudice to any other remedy to which it may be entitled at law, in equity or under this Agreement.
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7. OWNERSIDP OF DOCUMENTS.
a. Consultant shall maintain complete amI accurate recorus with respect to sales, costs, expenses,
receipts amI other such information requireu by City that relate to the performance of services unuer this Agreement.
Consultant shall maintain adequate records of services provided in sufficient detail to permit an evaluation of services.
All such records shall be maintained in accordance with generally accepted accounting principles and shall be clearly
identifieu amI readily accessible. Consultant shall provide free access to the representatives of City or its designees at
reasonable times to such books and records, shall give City the right to examine and audit said books and records, shall
permit City to make transcripts therefrom as necessary, and shall allow inspection of all work, data, documents,
proceedings and activities related to this Agreement. Such records, together with supporting documents, shall be
maintained for a period of three (3) years after receipt of final payment.
b. Upon completion of, or in the event of termination or suspension of this Agreement, all
original documents, designs, drawings, maps, models, computer files, surveys, notes, and other documents prepared in the
course of providing the services to be performed pursuant to this Agreement shall become the sole property of the City
and may be used, reused or otherwise disposed of by the City without the permission of the Consultant. With respect to
computer files, Consultant shall make available to the City, upon reasonable written request by the City, the necessary
computer software amI haruware for purposes of accessing, compiling, transferring anu printing computer files.
c. With respect to the design of public improvements, the Consultant shall not be liable for any
injuries or property damage resulting from the reuse of the design at a location other than that specified in Exhibit A
without the written consent of the Consultant.
8. INDEMNIFICATION. The Contractor shall defend, indemnify and hold harmless the City,
and its agents and employees from and against any and all claims, damages, losses, and expenses, including attorneys'
fees, arising out of or resulting from the Contractor's acts or omissions pursuant to this contract. The City shall
indemnify and hold harmless ESGIL and its agents and employees from and against all claims, damages, losses and
expenses, including attorneys' fees arising out of or resulting from the City's acts or omissions pursuant to this contract.
9. FREEDOM OF LIABILITY. The Contractor and Contractor staff, when performing duties
as representative ofthe City, shall have the freedom from liability contained in the applicable section pertaining to the
powers and duties of the building official, of the most recent adopted edition of the Califomia Building Code.
10. FINAL DECISION AUTHORITY. The City's Chief Building Official shall have final
decision authority over the results of the plan check by the Contractor and all work performed by the Contractor shall be
to the satisfaction of the Chief Building ()fficial.
In instances where the permit applicant takes exception to the Contractor's interpretation of the regulation containeu in
Title 24, the Building Official shall render a final decision utilizing, as deemed al'l'Wl,,;ate, the resources of the City
Attomey and/or Board of Appeals.
11. TNSIJRANCR RROIJTRRMRNTS, Consultant shall procure and maintain for the duration of
the contract insurance against claims for injuries to persons or damages to property which may arise from or in
connection with the performance of the work hereunuer by the Consultant, its agents, representatives, or employees.
a. Minimum Sr.o!1~ ofTnsunmr.~. Coverage shall be at least as broad as:
(1) Insurance Services Office Commercial General Liability coverage (occurrence form
CG 00(1).
(2) Insurance Services Office form number C A 0001 (Ed. 1/87) covering Automobile
Liability, code 1 (any auto).
(3) Worker's Compensation insurance as required by the State of California and
Employer's Liability Insurance.
(4) Errors and omissions liability insurance appropriate to the consultant's profession.
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b. Minimum T ,imits of Tnsurance. Consultant shall maintain limits no less than.
(I) General Liability. $1,111111,11111 1 per occurrence for bodily injury, personal injury and
property damage. If Commercial General Liability Insurance or other fonn with a
general aggregate limit is used, either the general aggregate limit shall apply
separately to this project/location or the general aggregate limit shall be twice the
required occurrence limit.
(2) Automobile Liability' $1,111111,111111 per accident for bodily injury and property
damage.
(3) Employer's Liability. $1,111111,11111 1 per accident for bodily injury or disease.
(4) Errors and omissions liability' $1,000,000 per occurrence.
c. Deductih1es and Se 1f-T nsured Retentions. Any deductibles or self-insured retentions must be
declared to and approved by the City Manager. At the option of the City Manager, either the insurer shall reduce or
eliminate such ueuuctibles or self-insureu retentions as respects the City, its officers, officials, employees anu volunteers;
or the Consultant shall procure a bond guaranteeing payment oflosses and related investigations, claim administration
and defense expenses.
d. ()th~r Tnsllr~nr.~ Provisions. The general liability and automobile liability policies are to
contain, or be endorsed to contain, the following provisions:
(I) The City, its officers, officials, employees and volunteers are to be covered as
insureds as respects: liability arising out of activities performed by or on behalf of
the Consultant; products and completed operations of the Consultant; premises
owned, occupied or used by the Consultant or automobiles owned, leased, hired or
borrowed by the Consultant. The coverage shall contain no special limitations on
the scope of protection afforded to the City, its officers, officials, employees or
volunteers.
(2) For any claims related to this project, the Consultant's insurance coverage shall be
primary insurance as respects the City, its officers, officials, employees and
volunteers. Any insurance or self-insured maintained by the City, its officers,
officials, employees or volunteers shall be excess of the Consultant's insurance anu
shall not contribute with it.
(3) Any failure to comply with reporting or other provisions of the policies including
breaches of warranties shall not affect coverage provided to the City, its officers,
officials, employees or volunteers.
(4) The Consultant's insurance shall apply separately to each insured against whom
claim is made or suit is brought, except with respect to the limits of the insurer's
liability
(5) Each insurance policy required by this clause shall be endorsed to state that
coverage shall not be suspended, voided, canceled by either party, reduced in
coverage or in limits except after thirty (30) days' prior written notice by certified
mail, retum receipt requested, has been given to the City
e. Ar.r.~!1t:;Jhi1ity ofTnSl]r~rs. Insurance is to be placed with insurers with a current A.M. Best's
rating of no less than A VII, unless otherwise acceptable to the City
f Verification of Covera~e. Consultant shall fumish the City with original endorsements
effecting coverage required by this clause. The endorsements are to be signed by a person authorized by that insurer to
bind coverage on its behalf The endorsements are to be on fonns provided by the City All endorsements are to be
received and approved by the City before work commences. As an alternative to the City's forms, the Consultant's insurer
may provide complete, certified copies of all required insurance policies, including endorsements effecting the coverage
relJ.uireu by these specifications.
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12. INDEPENDENT CONTRACTOR.
a. C'onsultant is ami shall at all times remain as to the C'ity a wholly independent contractor. The
personnel performing the services under this Agreement on behalf of C'onsultant shall at all times be under C'onsultant's
exclusive direction and control. Neither City nor any of its officers, employees or agents shall have control over the
conuuct of Consultant or any of Consultant's officers, employees or agents, except as set forth in this Agreement.
Consultant shall not at any time or in any manner represent that it or any of its officers, employees or agents are in any
manner officers, employees or agents of the City Consultant shall not incur or have the power to incur any debt,
obligation or liability whatever against C'ity, or bind C'ity in any manner
b. No employee benefits shall be available to Consultant in connection with the perfonnance of
this Agreement. Except for the fees paid to C'onsultant as provided in the Agreement, C'ity shall not pay salaries, wages,
or other compensation to C'onsultant for performing services hereunder for C'ity C'ity shall not be liable for
compensation or indemnification to Consultant for injury or sickness arising out of performing services hereunder.
13. LRGAL RRSPONSTRTLTTTRS. The Consultant shall keep itself infonned of State and
F ederallaws and regulations which in any manner affect those employed by it or in any way affect the perfonnance of its
service pursuant to this Agreement. The C'onsultant shall at all times observe and comply with all such laws and
regulations. The City, and its officers and employees, shall not be liable at law or in equity occasioned by failure of the
Consultant to comply with this section.
14. RELEASE OF INFORMATION.
a. All information gained by C'onsultant in performance of this Agreement shall be considered
confidential and shall not be released by C'onsultant without C'ity's prior written authorization. C'onsultant, its officers,
employees, agents or subcontractors, shall not without written authorization from the City Manager or unless requested
by the C'ity Attomey, voluntarily provide declarations, letters of support, testimony at depositions, response to
interrogatories or other information concerning the work performeu unuer this Agreement or relating to any project or
property located within the City Response to a subpoena or court order shall not be considered "voluntary" provided
Consultant gives City notice of such court oruer or subpoena.
b. Consultant shall promptly notify City should Consultant, its officers, employees, agents or
subcontractors be serveu with any summons, complaint, subpoena, notice of ueposition, request for uocuments,
interrogatories, request for au.rnissions or other uiscovery request, court oruer or subpoena from any party regaruing this
Agreement and the work performed thereunder or with respect to any project or property located within the City City
retains the right, but has no obligatio, to represent Consultant anu/or be present at any ueposition, hearing or similar
proceeding. C'onsultant agrees to cooperate fully with C'ity and to provide C'ity with the opportunity to review any
response to discovery requests provided by Consultant. However, City's right to review any such response does not imply
or mean the right by City to control, uirect, or rewrite saiu response.
15. NOTICES. Any notices which either party may desire to give to the other party under this
Agreement must be in writing and may be given either by (I) personal service, (ii) delivery by a reputable document
delivery service, such as but not limited to, Federal Express, that provides a receipt showing date and time of delivery, or
(iii) mailing in the United States Mail, certified mail, postage prepaid, retum receipt requested, addressed to the address
of the party as set forth below or at any other address as that party may later designate by Notice
To City'
City of T emecula
Mailing Address:
POBox 9033
Temecula, Califomia 92589-9033
432()() Business Park Drive
T emecula, Califomia 92590
Attention. City Manager
To Consultant:
Esgil Corporation
9320 Chesapeake Dr. #208
San Diego, C'A 92123
Attention. Richard Esgate, President
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16. ASSIGNMENT. The Consultant shall not assign the performance of this Agreement, nor any
part thereof, nor any monies uue hereunuer, without prior written consent of the City Upon termination of this
Agreement, Consultant sole compensation shall be the value of the City of the services rendered.
17. LICENSES. At all times during the term of this Agreement, Consultant shall have in full
force and effect, all licenses required of it by law for the performance of the services described in this Agreement.
18. GOVERNING LAW. The City and Consultant understand and agree that the laws of the
State of California shall govem the rights, obligations, duties and liabilities of the parties to this Agreement and also
govem the interpretation ofthis Agreement. Any litigation concerning this Agreement shall take place in the municipal.
superior, or federal district court with geographic jurisdiction over the City of Temecula. In the event of litigation
between the parties conceming this Agreement, the prevailing party as determined by the Court, shall be entitled to actual
amI reasonable attorney fees amI litigation costs incurreu in the litigation.
19. ENTIRE AGREEMENT. This Agreement contains the entire understanding between the
parties relating to the obligations of the parties uescribeu in this Agreement. All prior or contemporaneous agreements,
understandings, representations and statements, oral or written, are merged into this Agreement and shall be of no further
force or effect. Each party is entering into this Agreement based solely upon the representations set forth herein and upon
each party's own inuepemlent investigation of any amI all facts such party ueems material.
20. AIJTHORTTY TO EXECUTE TffiS AGREEMENT. The person or persons executing this
Agreement on behalf of Consultant warrants and represents that he or she has the authority to execute this Agreement on
behalf of the Consultant and has the authority to bind Consultant to the performance of its obligations hereunder
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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed the day and year first
above written.
CITY OF TEMECULA
Bv
Ron Roberts, Mayor
Attest:
Susan W Jones, MMC', C'ity ('jerk
Appraved As to Form.
Peter Thorson, C'ity Attomey
CONSULTANT
ESGIL C'ORPORATION
Richard Esgate, President
Esgil C'orporation
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EXHIBIT A
TASKS TO BE PERFORMED
PLAN (,HE(,KING
Provide a complete plan check service to the City of T emecula including analysis for compliance with the City's
adopted uniform codes as follows:
Building code requirement including:
D Requirements based upon type of occupancy
D Requirements based upon type of construction
D Engineering regulations including seismic loaus
D Detailed regulations of construction
D Fire resistive stanuanls for fire protection
D Fire and life safety requirements
D Accessibility to the physically handicapped
National Electrical ('ode requirements
Uniform Plumbing Code requirements
Title 24 energy conservation compliance
City's arnenu.rnents to the uniform caues.
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EXHIBIT B
CITY OF TEMECllLA
Esgil Corporation's plan review fee shall be 75', of the inspection portion of the City's inspection portion of the
building permit fee.
Plan check fee for repetitive identical buildings shall be 75', of the inspection portion of the City's Permit Fee as
noted above for the first, or basic building, and 15', of the inspection portion of the City's Permit Fee as noted
above for each repetitive building.
The single fee includes all rechecks and there are no additional charges for preliminary plan check conferences at our
office, e,cpedited processing, or checking plans that are eventually found to be incomplete.
Revisions to previously approved plans will be at Esgil Corporation's published hourly rates.
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ITEM NO.7
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APPROVAL
CITY ATTORNEY ~
DIRECTOR OF FINANCE_ :;:",- -==
CITY MANAGER L:fl/
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CITY OF TEMECULA
AGENDA REPORT
TO: City Manager/City Council
FROM: Mitch Aim, Chief of Police
DATE: July 11,2006
SUBJECT: General Maintenance Expenditure with Quaid Temecula Harley-Davidson
PREPARED BY:
Heidi Schrader, Management Analyst
RECOMMENDATION: That the City Council:
1. Approve the expenditure of $7,000 in FY 05/06 with Quaid Temecula Harley-Davidson
for repair and maintenance of Police motorcycles.
2. Approve an annual expenditure of $35,000.00 plus a 10% contingency in FY 06/07 with
Quaid Temecula Harley-Davidson for repair and maintenance of Police motorcycles.
BACKGROUND: The City of Temecula purchases Police motorcycles and service and
maintenance from Quaid Temecula-Harley Davidson. Under the current service agreement with
Quaid, the City pays for general wear and tear maintenance and non-warranty repairs such as
new tires, brake pads and oil changes.
In Fiscal Year 2005-06 $32,700 was expended in maintenance and service charges. This is a
$14,000 increase from the previous year. This increase can be attributed to the addition of two
new motorcycles to the Police Department Traffic Enforcement fleet as well as a larger patrol
area, due to the Redhawk annexation. In addition, grant overtime operations and extra duty Hot
Spot enforcement have added to the overall wear and tear on the motorcycles. It is anticipated
that Hot Spot enforcement operations will continue. In addition, a new Office of Traffic Safety
grant will begin in the current Fiscal Year, which will increase the use of the Police motorcycles.
All of this has a direct impact on the wear and tear of the Police motorcycles and the required
maintenance service.
FISCAL IMPACT: Adequate funds exist within the 2005-06 and 2006-07 Police Department
budgets to make this purchase.
C\ WINDOWS\apsdoc\riettemp'4544 \$ASQpdf81 0608 .doc
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ITEM NO.8
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Approvals
City Attorney
Director of Finance
City Manager
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CITY OF TEMECULA
AGENDA REPORT
TO:
City Manager/City Council
FROM:
William G. Hughes, Director of Public Works/City Engineer
DATE:
July 11, 2006
SUBJECT:
Grant of Easement to Rancho California Water District for the Purpose of
Correcting a Previously Recorded Easement located within Pala Community
Park
PREPARED BY:
Ronald J. Parks, Deputy Director of Public Works
Steve Charette, Associate Engineer
RECOMMENDATION:
That the City Council:
1. Adopt a resolution entitled:
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
TEMECULA APPROVING A GRANT OF EASEMENT TO RANCH
CALIFORNIA WATER DISTRICT FOR THE PURPOSE OF
CORRECTING A PREVIOUSL Y RECORDED EASEMENT
LOCATED WITHIN PALA COMMUNITY PARK
2. Direct City Clerk to forward the approved Grant of Easement to Rancho California Water
District for their acceptance and recordation.
BACKGROUND: On November 22, 1993 the City Council granted an easement to
Rancho California Water District (RCWD) for water utility purposes adjacent to Temecula Lane and
within Pala Community Park. The water pipelines and appurtenances were installed to provide a
water supply for the proposed Pala Park and also the Subdivision Tract 21067 west of the park.
Recently RCWD informed the City of Temecula that two errors were present in the recorded
easement legal description. Specifically, two bearings are incorrect. The first bearing, located atthe
southerly end of the easement, and identified as, "North 53d 36' 44" West 89.96 feet" should read
"North 53d, 36' 49" West 89.96 feet". The second bearing located at the northerly end of the
easement is one-hundred eighty degrees in the wrong direction. Said bearing, "North 87d 01' 09"
West 45 feet" should read "South 87d 01' 09" East 45 feet". The legal description has been
revised to include the corrected bearings and is attached herewith along with a new grant easement
for approval by City Council. The grant easement will then be forwarded to RCWD for recordation.
FISCAL IMPACT:
None
ATTACHMENTS:
1. Resolution No. 2006_
2. Grant of Easement Deed with Legal Description labeled Exhibit "A" & Plat labeled Exhibit "B"
RESOLUTION NO. 06-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF TEMECULA APPROVING A GRANT OF EASEMENT
TO RANCH CALIFORNIA WATER DISTRICT FOR THE
PURPOSE OF CORRECTING A PREVIOUSLY
RECORDED EASEMENT LOCATED WITHIN PALA
COMMUNITY PARK
THE CITY COUNCIL OF THE CITY OF TEMECULA DOES RESOLVE, DETERMINE
AND ORDER AS FOllOWS:
WHEREAS, The City of Temecula constructed improvements at the Pala
Community Park in 1994 resulting in the installation of a water system for the park, and
said system required the installation of pipelines and appurtenant structures by Rancho
California Water District (RCWD); and,
WHEREAS, Rancho California Water District required the grant of an easement
in order to maintain said pipelines and appurtenant structures; and,
WHEREAS, The Grant of Easement with attached legal description and plat map
was recorded with the County Recorder's Office on January 18,1994; and,
WHEREAS, Certain errors in the legal description and plat map of said easement
were recently discovered by Rancho California Water District; and,
WHEREAS, Rancho California Water District requires the recordation of a
revised Grant of Easement that includes the corrected legal description labeled Exhibit
"A" and the plat map labeled Exhibit "B" attached hereto in order to provide continued
access to said pipelines and appurtenant structures; and,
WHEREAS, the City Council of the City of Temecula hereby desires to grant to
Rancho California Water District said revised easement to provide continued access to
said pipelines and appurtenant structures;
THEREFORE, BE IT RESOLVED, that the City Council approved that certain
'Grant of Easement' attached hereto as Exhibit 1 and authorizes the Mayor to execute
the Grant of Easement on behalf of the City. Exhibits A and B are exhibits to the Grant
of Easement and not the Resolution..
PASSED, APPROVED, AND ADOPTED by the City Council of the City of
Temecula this 11th day of July, 2006.
Ron Roberts, Mayor
ATTEST:
Susan W. Jones, MMC
City Clerk
[SEAL]
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss
CITY OF TEMECULA )
I, Susan W. Jones, MMC, City Clerk of the City of Temecula, do hereby certify that
the foregoing Resolution No. 06- was duly and regularly adopted by the City Council of
the City of Temecula at a meeting thereof held on the 11th day of July, 2006, by the
following vote:
AYES:
COUNCIL MEMBERS:
COUNCIL MEMBERS:
COUNCIL MEMBERS:
COUNCIL MEMBERS:
NOES:
ABSENT:
ABSTAIN:
Susan W. Jones, MMC
City Clerk
Recording Requested by
RANCHO CALIFORNIA WATER DISTRlCf
After Recordation Return to:
Rancho California Water District
42135 Winchester Road
Post Office Box 9017
Temecula, CA 92589-9017
Space Above This Line for Recorder's Use
GRANT OF EASEMENT
FOR VALUABLE CONSIDERATION, receipt of which is hereby acknowledged,
City o,fTemecula, a Municipal Corporation
hereby GRANT(S) to RANCHO CALIFORNIA WATER DISTRICT, a public corporation, a perpetual non--exc1usive easement and
rightvof-way for pipeline or pipelines. together with incidental.appurtenances, connections, and structures in, over, under, upon, along,
through. and across the real property situated in the County of Riverside, State of Cali forma, hereinafter described;
See Exhibit "'A," attached hereto and in......_ r-- ..~ed herein by reference,
The easement granted herein is illustrated on Exhibit "R," attached hereto for reference only.
together with the right to grade and improve said right-oC-way and to enter upon and to pass and repass over and along said strip of land
fOf the construction, operation, and maintenance of the facilities to be constructed in said easements by the RANCHO CALIFORNIA
WATER D1STRlCf.
It is understood and agreed that the easement<; and rights-of-way acquired herein are subject to the right of the owner, his successors and
assigns, to use the surface of the land within the boundary lines of said easement<; and right<;~of-way to the extent that such .use is
compatible with the full and:free exercise of said easement<; and right<;-of-way by the RANCHO CALIFORNIA WATER DISTRICT;
provided; however, that no fences, block walls or other structures, or other improvement<; shall be constructed upon, over, and along said
easements and right<;-of-way without ftrst obtaining the written consent of the RANCHO CALIFORNIA WATER DISTRICT.
No fill or paving of any nature shall be placed or maintained over the surface of the ground, nor shall any earth be removed from the cover
of said pipeline after consbuction, without first obtaining the written approval of the RANCHO CALIFORNIA WATER DISTRICT.
This easement is being recorded to correct an error in the legal description and plat of tbe original easement recorded January
18,1994 as Instrument Number 18853.
IN WITNESS \VHEREOF, this instrument has been executed this _ day of
2006.
CITY OF TEMECULA
\.,oKJJ.rJCATE OF ACCEPTANCE
This is to certify that the interest in real property
conveyed by the deed or grant dated
2006 from
By:
Ron RobertS, Mayor
ATIEST:
to Rancho California Water District, a public agency
and subdivision in the State of California, is hereby
accepted by order of the undersigned officer on behalf
of the Board of Directors pursuant to the authority
conferred by Resolution No. 2004-~-2 of the Board of
Directors adopted on May 13, 2004 and the grantee
consents to .........~.:.....:...u thereof by its duly authorized
officer.
By:
Susan w.Jones,MMC
Cil)'Clerlc
APPROVED AS TO FORM:
DATED:
,2006
By:
Peter M. Thorson, Cil)' Attorney
RANCHO CALIFORNIA WATER DISTRICT
By:
Brian J. Brady, Gene~1 Manager
06\A W:lm\Grnnl of Easement City ofTemecula 2
EXHIBIT "B"
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iCLE ENGINEERING, INC.
== 41601 Oote St. Murrieta. CA. 92562
Phone: 951.698.1830 Fax: 951.698.8656
DATE:4/05/06 I JOB NO. 06024.1021DRAWN BY:JM
<.
EXHIBIT "A"
WATER FACILITIES EASEMENT
In the City of Temecula, County of Riverside, State of California, All those portions of Lots 87,
88 and 89, together with those portions of Lettered Lots "D" and "H", of Tract 21067, recorded in
Book 231 Pages 41 through 48 inclusive of Maps, in the Office of the County Recorder of said
County, lying within a strip of land thirty feet wide, 15.00 feet on each side of the following
described centerlines:
PARCEL 1
COMMENCING at the Southeasterly corner of said Lot "H", said point being also in the
centerline of Temecula Lane, 60.00 feet wide, as shown on Parcel Map No. 8856, recorded in
Book 41, Pages 72 and 73 of Parcel Maps, Official Records of said County; thence along said
centerline North 53036'49" West 89.96 feet; thence North 40038'19" West 50.00 feet to the
TRUE POINT OF BEGINNING, said point being also on a 290.00 foot radius curve concave
Southwesterly, a radial line to said point bearing North 40037'45" East; thence Northwesterly
along said curve through a central angle of 04013'46", a distance of 21.41 feet; thence, tangent
to said curve, North 53036'01" West 128.69 feet to a point hereinafter referred to as Point "A";
thence continuing North 53036'01" West 110.96 feet to the beginning of a 300.00 foot radius
curve concave Northeasterly; thence Northwesterly along said curve through a central angle of
17039'19" a distance of 92.44 feet to the beginning of a compound curve concave Northeasterly
having a radius of 438.00 feet; a radial line to said point bearing South 54003'18" West; thence
Northwesterly along said curve through a central angle of 15056'11" a distance of 121.83 feet to
the beginning of a second compound curve concave Northeasterly, having a radius of 293.00
feet, a radial line to said point bearing South 69 059' 29" West; thence Northwesterly along said
curve through a central angle of 17001'40" a distance of 87.08 feet; thence tangent to said curve
North 02058'51" West 82.23 feet; thence South 87001'09" East 45.00 feet to the end of the
herein described line
PARCEL 2
Beginning at Point "A", hereinbefore described in Parcel 1 above, thence North 36023'59"
East 47.50 feet to the end of the herein described line.
The herein described easement shall be augmented by an easement 5.00 feet on both sides of
and extending 5.00 feet beyond all pipeline appurtenances including, but not limited to, fire
hydrant assemblies, air vacuum/air release assemblies, blow-off assemblies, detector checks,
and service connections from the pipeline to the water meter box.
The sidelines of said 1 O.OO-foot easements are to be prolonged or shortened to create full
1 O.OO-foot easements at all intersecting courses.
06024 REVISED 94-18853.doc
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ITEM NO.9
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Approvals
City Attorney
Director of Finance
City Manager
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CITY OF TEMECULA
AGENDA REPORT
TO:
City Manager/City Council
FROM:
Herman D. Parker, Director of Community Services
DATE:
July 11, 2006
SUBJECT:
First Amendment to the Agreement with the Friends of the Temecula Children's
Museum
PREPARED BY:
Phyllis L. Ruse, Deputy Director of Community Services
RECOMMENDATION:
That the City Council:
1. Approve the First Amendment to the Agreement between the City of Temecula and the
Friends of the Children's Museum for the operation of the Children's Museum gift shop.
2. Accept certain in-kind services as payment in full of the license fee obligation for the Gift
Shop.
BACKGROUND: On March 16, 2004, the City Council approved the Cooperative
Agreement between the City of Temecula and Friends of the Temecula Children's Museum forthe
Support of the Temecula Children's Museum and Operation of the Children's Museum Gift Shop.
The agreement provides for the Friends of the Temecula Children's Museum ('Association") operate
the Children's Museum gift shop, solicit sponsorships and donations for the museum, and to offer
other support and assistance through program enhancement, special events and new exhibits. The
agreement further provides for the Association to pay to the City 12% of their net revenues during
the first eighteen months of operations of the gift shop and 15% of net revenues for subsequent
years. Other funds collected by the Association through donations, sponsorships, and special
events are also to be used for the support of the Children's Museum. This is in keeping with the
Association's primary mission, which is to sponsor fundraising activities to assist and enhance in the
operations and maintenance of the museum facility and programs.
Since undertaking this responsibility, the Association has found it difficult to successfully operate the
gift shop solely with volunteers, as first intended. The Association has found it necessary to hire a
full time staff member to maintain the day-to-day operations of the gift shop. The proposed
amendment is similar to the one in place with Temecula Valley Museum, Inc., the non-profit group
that operates the gift shop at the Temecula Valley Museum.
Amendment NO.1 to the Agreement would suspend the payment and accrual of the license fee
obligation for the gift shop from June 27, 2006 to July 1,2009. It will further accept in-kind services
to date as payment of the license fee obligation from March 16,2004 to June 27, 2006. These in-
kind services include, but are not limited to, staff salaries paid to date, special events funded by the
Association, and volunteer assistance with programming.
FISCAL IMPACT: The Association will continue to pay all costs associated with the
operations of the gift shop, including staff salaries, payroll taxes, inventory, etc. The Association will
also continue to provide assistance with special events and programming atthe Children's Museum.
ATTACHMENTS:
Amendment NO.1 to Agreement
FIRST AMENDMENT TO "COOPERATIVE AGREEMENT
BETWEEN CITY OF TEMECULA AND FRIENDS OF THE
TEMECULA CHILDREN'S MUSEUM FOR THE SUPPORT
OF THE TEMECULA CHILDREN'S MUSEUM AND
OPERATION OF THE CHILDREN'S MUSEUM GIFT
SHOP
THIS FIRST AMENDMENT is made and entered into by and between the City
of T emecula, a municipal corporation ("City") and the Friends of the T emecula Children's
Museum, a California non-profit corporation ("essociation"), as of July, 11 2006. hl
consideration of the mutual covenants, conditions and undertakings set forth herein, the parties
agree as follows:
1. Recitals. I1lis Agreement is made with respect to the following facts and
purposes which each ofthe parties acknowledge and agree are true and correct:
a. On March 16, 2004, the City and the Association entered into that
certain agreement entitled: "Cooperative Agreement Between City of Temecula and
Friends ofthe Temecula Children's Museum for the Support or the Temecula Children's
Museum and Operation of the Children's museum Gift Shop" ("Agreement")
b. Association has been operating the Gift Shop since the Children's
Museum opened.
c. Association now seeks a repeal ofthe license fee for the Gift Shop so
as to enable it to develop the business and establish its inventory.
2. Snspension of License Fee. Section 4 of the Agreement is amended to
provide that the payment and accrual of the license fee obligation for the Gift Shop is repealed
effective as of June 27, 2006.
3. Remaining Provisions Not Affected. Except as specifically set forth
herein, all other provisions ofthe Agreement shall remain in full force and effect.
4/12/00 museum.3
IN WITNESS WHEREOF, the parties hereto have executed this First Amendment as of
the date first written above.
CITY OF TEMECULA
Ron Roberts
Mayor
ATTEST:
Susan Jones, MMC
City Clerk
APPROVED AS TO FORM:
Peter M. Thorson
City Attomey
FRIENDS OF THE TEMECULA CHILDREN'S
MUSEUM, a California Non-Profit Corporation
By:
Name:
Title:
(Signatures of two corporate
officers is required)
By:
Name:
Title:
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4/12/00 museum.3
TEMECULA COMMUNITY
SERVICES DISTRICT
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ITEM NO.1 0
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MINUTES OF A REGULAR MEETING
OF
THE TEMECULA COMMUNITY SERVICES DISTRICT
JUNE 13, 2006
A regular meeting of the City of Temecula Community Services District was called to order at
7:58 P.M., in the City Council Chambers, 43200 Business Park Drive, Temecula, California.
ROLL CALL
PRESENT:
4
DIRECTORS:
Edwards, Naggar, Washington,
and Comerchero
ABSENT:
1
DIRECTORS:
Roberts
Also present were General Manager Nelson, City Attorney Thorson, and City Clerk Jones.
PUBLIC COMMENTS
No input.
CSD CONSENT CALENDAR
28 Minutes
RECOMMENDATION:
28.1 Approve the minutes of May 23, 2006.
29 Temecula Communitv Services District Fiscal Year 2006-2007 Annual Maintenance
Acreements
RECOMMENDATION:
29.1 Approve the Annual Maintenance and Construction Contracts for Fiscal Year 2006-
2007 with:
1. Rizzo Construction for an amount not to exceed $200,000.00
2. Moore Fence for an amount not to exceed $150,000.00
3. Strong Painting for an amount not to exceed $100,000.00
4. Alexander Pacific for an amount not to exceed $100,000.00
5. N.P.G., Inc. for an amount not to exceed $100,000.00
6. Imperial Paving Company, Inc. for an amount not to exceed $100,000.00
7. Monteleone Construction, Inc. for an amount not to exceed $100,000.00
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8. Craftsmen Plumbing for an amount not to exceed $75,000.00
9. Power Distributors, Inc. for an amount not to exceed $50,000.00
30 Second Amendment to the Elevator Service and Monitorinc Acreement with ThvssenKruoo
Elevator for Fiscal Year 2006-2007
RECOMMENDATION:
30.1 Approve the Second Amendment with ThyssenKrupp Elevator for $7,100.00 to
provide Elevator Service and Monitoring of all City elevators and extend the
Agreement to June 20, 2007.
31 Doc Park at Redhawk Communitv Park
RECOMMENDATION:
31.1 Approve a temporary dog park and the construction of a permanent dog park facility
at Redhawk Community Park;
31.2 Find that the proposed off-leash area is exempt from the provisions of California
Environmental Quality Act because it is categorically exempt under the Class 1
Categorical Exemption, Existing Facilities (14 Cal. Code Regs. 315301), Class 4
Categorical Exemption, Minor Alterations to Land (14 Cal. Code Regs. 315304), and
Class 23 Categorical Exemption, Normal Operations of Facilities for Public
Gatherings and direct the City Manager to file a Notice of Exemption as required by
law.
(Item No. 31 was pulled for separate action, see pages 3-6.)
32 Third Amendment to the Citywide Tree Maintenance Services Acreement with West Coast
Arborists for Fiscal Year 2006-2007
RECOMMENDATION:
32.1 Approve the Third Amendment with West Coast Arborists, Inc. for $100,000.00 plus
a 10% contingency of $10,000.00 to provide Citywide Tree Maintenance Service
and extend the Agreement to June 30, 2007.
33 Second Amendment to the Facilitv Alarm System Service and Monitorinc Acreement with
Comouter Alert Svstems for Fiscal Year 2006-2007
RECOMMENDATION:
33.1 Approve the Second Amendment with Computer Alert Systems, Inc. for $30,000.00
to provide Alarm System Service and Monitoring for City Facilities and extend the
Agreement to June 30, 2007.
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34 First Amendment to the Water Management/Maintenance Services Acreement with Marine
Biochemists for Fiscal Year 2006-2007
RECOMMENDATION:
34.1 Approve the First Amendment with Marine Biochemists for $78,260.00 to provide
Water Management/Maintenance Services for Harveston Lake Park and Temecula
Duck Pond and extend the Agreement to June 30, 2007.
35 Second Amendment to the Janitorial Services Acreement for Park Restrooms and Picnic
Shelters with Morris Mvers Maintenance for Fiscal Year 2006-2007
RECOMMENDATION:
35.1 Approve the Second Amendment with Morris Myers Maintenance for $80,000.00 to
provide Janitorial Services for Park Restrooms and Picnic Shelters and extend the
Agreement to June 30, 2007.
36 Citv Facilities Janitorial Services
RECOMMENDATION:
36.1 Approve the Agreement with T and T Janitorial in the amount of $119,486.88 for
Janitorial Maintenance Services for City Facilities.
MOTION: Director Edwards moved to approve Consent Calendar Item Nos. 28-30 and 32-36
(Item No. 31 was pulled for separate discussion). Director Washington seconded the motion
and electronic vote reflected approval with the exceotion of Director Roberts who was absent.
CONSENT CALENDAR ITEM CONSIDERED UNDER SEPARATE DISCUSSION
31 Doc Park at Redhawk Communitv Park
RECOMMENDATION:
31.3 Approve a temporary dog park and the construction of a permanent dog park facility
at Redhawk Community Park;
31.4 Find that the proposed off-leash area is exempt from the provisions of California
Environmental Quality Act because it is categorically exempt under the Class 1
Categorical Exemption, Existing Facilities (14 Cal. Code Regs. 315301), Class 4
Categorical Exemption, Minor Alterations to Land (14 Cal. Code Regs. 315304), and
Class 23 Categorical Exemption, Normal Operations of Facilities for Public
Gatherings and direct the City Manager to file a Notice of Exemption as required by
law.
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Director of Community Services Parker provided a staff report (of written material), advising that
at the June 12, 2006, Community Services Commission meeting, the Commission heard
testimony from approximately 45 individuals; that approximately 13 were opposed to the
construction of the dog park; that approximately 32 individuals were in support of the proposed
dog park at Redhawk Community Park; and that at the conclusion of the meeting, the
Community Services Commission, with the exception of Commissioner Hogan who was absent,
voted to approve the temporary/permanent dog park at Redhawk Community Park.
Advising that the City will be strictly enforcing the leash law, City Manager Nelson stated the
following:
D That Anima/ Friends of the Valley will be assisting the City with enforcing the leash law
D That the City's Code Enforcement will also be enforcing the leash law
D That the newly approved Park Ranger position will as well be monitoring the park for
violations
D That signs will be posted throughout the park, displaying the rules/regulations of the dog
park
D That if a dog were not licensed or vaccinated, the dog will not be able to use the dog
park
D That individuals who violate the leash law will be cited.
Clarifying for the Directors and the public, Director of Community Services Parker also noted
that all dogs utilizing the dog park would need to be licensed, vaccinated, and on a dog leash
until the dog enters the unleashed area and that individuals who do not abide by the rules will
be cited.
Referencing Director Naggar's comments, all dog owners will be accessing the dog park at their
own risk and that dog owners will be expected to bring only those dogs that are well socialized
to the park.
Referencing the implementation of a dog park at Redhawk Community Park, City Attorney
Thorson noted that based on all provisions of the City's Code, the City would have full authority
to adopt an off-leash designation for the Redhawk Community Park; that individuals had an
opportunity to speak at the Community Services Commission meeting; that there is no language
in the old County Zoning Ordinance No. 348, in the current Zoning Code, in the Redhawk
Specific Plan, in the California Environmental Quality Act (CEQA), or in any other stated law that
would require extensive notification my mail prior to making this particular change; and that the
proposed modifications would be viewed as typical park recreation and, therefore, would not
require the formal notification process.
Ms. Willa Bagwell, representing Anima/ Friends of the Valley, noted the following:
D That officers will be patrolling and enforcing the City's leash law
D That any dogs over four months of age would be required to be vaccinated and licensed
D That any dog owner caught violating the leash law will be cited
D That public safety would be the main concern.
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In response to Director Edwards' query, City Attorney Thorson stated that there would be
stronger enforcement mechanisms available if it were the desire of the City Council and that
administrative/civil penalties would be available, advising that the fines would substantially
increase.
Ms. Bagwell noted that the fine would increase each time an individual is cited; that the fourth
citation would be written as misdemeanor; that fines would range from $50 to $250; and that a
civil penalty could go up to as much as $2,500 a day.
At this time, the public hearing was opened.
The following individuals spoke in favor of the proposed dog park at Redhawk Community Park:
D Mr. Steve Mondero, Temecula
D Ms. Donna Weiss, Temecula
D Ms. Lynne Sorrentino, Temecula
D Ms. Lois Miller, Temecula
D Mr. Marc Green, Temecula
D Mr. Michael Slocum, Temecula
D Ms. Patty White, Temecula
D Ms. Vikki Green, Temecula
D Ms. Catherine Bagdasarian, Temecula
D Mr. Randy Yount, Temecula
D Ms. Trina Snow, Temecula
D Mr. David Rothstein, Temecula
D Mr. Matt Pegues, Temecula.
The above-mentioned individuals spoke in favor of the proposed dog park at Redhawk
Community Park for the following reasons:
D That such a park would meet a certain need in the City of Temecula
D That many dog owners in the community would use the proposed dog park
D That the construction of three dog parks in the City ( northern, central, and southern)
would be beneficial to the community as a whole
D That the proposed Redhawk Community Park location would be an excellent choice for
a dog park
D That the only individuals against the dog park would be those residents that abut the
park
D That Redhawk Community Park was built for the whole community, not just for those
residents who abut the park
D That Redhawk Community Park is a large enough park to accommodate many
uses/users; that the proposed area would be far enough removed from the play area as
well as the entrance to the park
The following individuals spoke in opposition to a dog park at Redhawk Community Park:
D Ms. Freddie Wiemer, Temecula
D Mr. Don Swift, Temecula
D Ms. Betty Johnson, Temecula
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D Mr. Dennis Trombine, Temecula
D Mr. Ken Johnson.
The above-mentioned individuals spoke in opposition to the dog park at Redhawk Community
Park for the following reasons:
D That dog owners have been in violation of the leash law for years
D That dog owners have not been responsible in cleaning up after their dogs
D That Wolf Valley Park should be considered versus Redhawk Community Park
D That public noticing was not properly administered
D That other sites for a dog park should be explored
D That a dog park in the Redhawk Community would increase traffic.
At 9:08 pm, the public hearing was closed.
Understanding the need for dog parks and advising that he is not a dog owner, Director
Washington noted that, in his opinion, Redhawk Community Park would be an ideal location for
a dog park.
Noting that every park in the City should be used to its fullest capacity, Director Naggar stated
that, in his opinion, Redhawk Community Park is not being utilized to its fullest extent;
expressed his support of the proposed location; and requested that a zero-tolerance protocol
with regard to the leash law be implemented.
Referencing the concerns of the opposing individuals, Director Edwards noted that it would be
her opinion that all issues of concern have been addressed; concurred with zero tolerance for
leash law violators; supported the construction of a dog park at Redhawk Community Park; and
requested that a restroom be installed at this park.
Speaking in full support of the proposed dog park at Redhawk Community Park, President
Comerchero noted that the proposed park is a large enough park to accommodate a dog park
as well as other everyday uses; stated that Redhawk Community Park, in his opinion, I currently
underutilized; relayed that the fenced area for dogs will allow safer opportunity for other that
play at the park; and viewed the construction of a dog park as an amenity that the park will not
be changed but rather will have another amenity added to it.
MOTION: Director Naggar moved to approve staff recommendation, subject to the adoption of
zero tolerance with regard to leash laws and licensing/vaccination laws. Director Washington
seconded the motion and voice vote reflected approval with the exceotion of Director Roberts
who was absent.
Director Comerchero thanked all the above-mentioned speakers for their input.
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CSD BUSINESS
37 Review and Adootion of FY2006-2007 Annual Ooeratina Budaet
37.1 Adopt a resolution entitled:
RESOLUTION NO. CSD 06-07
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE TEMECULA
COMMUNITY SERVICES DISTRICT OF THE CITY OF TEMECULA ADOPTING
THE FY 2006-07 ANNUAL OPERATING BUDGET AND ESTABLISHING
CONTROLS ON CHANGES IN APPROPRIATIONS
By way of a PowerPoint presentation, General Manager Nelson reviewed the proposed Annual
Operating Budget (as per staff report and as was presented at the May 17, 2006, Budget
Workshop).
General Manager Nelson, for Director Edwards, noted that funding for the TAP Program will not
be an issue.
With regard to the REST Program, General Manager Nelson, for Director Naggar, advised that
approximately $21 million of REST monies, over the past five years, has benefited the residents
and that approximately $30 million of REST monies since the inception of the program.
Concurring with Director Edwards' request to construct a restroom at the Redhawk Community
Park, General Manager Nelson noted that funds necessary for the construction of a restroom
will be made available.
Commenting on the history of the Redhawk Community Park, Director Washington stated that
the City does not build 14-acre passive parks and viewed this large park as a waste of beautiful
park space that is not being enjoyed by the community.
The District Members concurred that it would be its will to construct a restroom at the Redhawk
Community Park.
MOTION: Director Naggar moved to adopt Resolution No. CSD 06-07. The motion was
seconded by Director Edwards and electronic vote reflected approval with the exceotion of
Director Roberts who was absent.
CSD DIRECTOR OF COMMUNITY SERVICES REPORT
Community Services Director Parker thanked his staff for its efforts associated with the
Recreation Brochure and encouraged the public to take advantage of the many various
activities.
CSD GENERAL MANAGER'S REPORT
No additional comment.
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CSD BOARD OF DIRECTORS' REPORTS
No additional comments.
CSD ADJOURNMENT
At 9:40 p.m., the Temecula Community Services District meeting was formally adjourned to
Tuesday, June 27, 2006, at 5:30 P.M., for a Closed Session, with regular session commencing
at 7:00 P.M., City Council Chambers, 43200 Business Park Drive, Temecula, California.
Jeff Comerchero, President
ATTEST:
Susan W. Jones, MMC
City Clerk/District Secretary
[SEAL
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MINUTES OF A REGULAR MEETING
OF
THE TEMECULA COMMUNITY SERVICES DISTRICT
JUNE 27,2006
A regular meeting of the City of Temecula Community Services District was called to order at
7:34 p.m., in the City Council Chambers, 43200 Business Park Drive, Temecula, California.
ROLL CALL
PRESENT:
5
DIRECTORS:
Edwards, Naggar, Roberts, Washington,
and Comerchero
ABSENT:
o
DIRECTORS:
None
Also present were General Manager Nelson, City Attorney Thorson, and City Clerk Jones.
PUBLIC COMMENTS
No input.
CSD CONSENT CALENDAR
21 Professional Services Aareement for TCSD Landscaoe Plan Check and Insoection Services
RECOMMENDATION:
21.1 Approve a one (1) year Professional Services Agreement with Community Works
Design Group for TCSD landscape plan check and inspection services in the
amount of $60,000 and authorize the Board President to execute the agreement.
22 Acceotance of a Landscaoe Maintenance Easement Deed alona Date Street within the
Harveston Develooment
RECOMMENDATION:
22.1 Accept the Landscape Maintenance Easement Deed for certain areas along Date
Street within the Harveston Development.
23 Inclusion of Tracts into Service Level B and Service Level C for Fiscal Year 2006-2007
RECOMMENDATION:
23.1 Adopt a resolution entitled:
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RESOLUTION NO. CSD 06-08
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE TEMECULA
COMMUNITY SERVICES DISTRICT OF THE CITY OF TEMECULA ACCEPTING
CERTAIN TRACTS INTO TCSD SERVICE LEVEL B FOR PURPOSES OF
FUNDING THE ENERGY CHARGES FOR RESIDENTIAL STREET LIGHTS
BEGINNING FISCAL YEAR 2006-2007
23.2 Adopt a resolution entitled:
RESOLUTION NO. CSD 06-09
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE TEMECULA
COMMUNITY SERVICES DISTRICT OF THE CITY OF TEMECULA ACCEPTING
CERTAIN TRACTS INTO SERVICE LEVEL C BEGINNING FISCAL YEAR 2006-
2007
24 Arts Council Community Grant Aareement
RECOMMENDATION:
24.1 Approve the Community Grant Agreement between the Temecula Community
Services District (TCSD) and the Arts Council of Temecula Valley in the amount of
$40,000.
MOTION: Director Washington moved to approve Consent Calendar Item Nos. 21-24. The
motion was seconded by Director Edwards and electronic vote reflected unanimous approval.
CSD PUBLIC HEARING
25 TCSD Pro Dosed Rates and Charaes for Fiscal Year 2006-2007
RECOMMENDATION:
25.1 Adopt a resolution entitled:
RESOLUTION NO. CSD 06-10
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE TEMECULA
COMMUNITY SERVICES DISTRICT OF THE CITY OF TEMECULA ADOPTING
RATES AND CHARGES FOR SERVICE LEVEL B - RESIDENTIAL STREET
LIGHTING, SERVICE LEVEL C - PERIMETER LANDSCAPING AND SERVICE
LEVEL D - REFUSE AND RECYCLING COLLECTION SERVICES FOR FISCAL
YEAR 2006-2007
25.2 Adopt a resolution entitled:
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RESOLUTION NO. CSD 06-11
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE TEMECULA
COMMUNITY SERVICES DISTRICT OF THE CITY OF TEMECULA ADOPTING
RATES AND CHARGES FOR SERVICE LEVEL R - ROAD MAINTENANCE
SERVICES FOR FISCAL YEAR 2006-2007
By way of overheads, Community Services Director Parker reviewed the staff report,
highlighting the proposed rates (as per agenda material).
In response to President Comerchero's inquiry, Community Services Director Parker noted that
the challenge of retaining the fees at the same rate or at a minimal increase is becoming more
difficult to achieve.
At this time, the public hearing was opened; there being no public input, the hearing was closed.
MOTION: Director Naggar moved to adopt Resolution Nos. CSD 06-10 and CSD 06-11.
Director Edwards seconded the motion and electronic vote reflected unanimous approval.
CSD DEPARTMENTAL REPORT
26 Community Services Deoartment Monthlv Reoort
No additional comments
CSD DIRECTOR OF COMMUNITY SERVICES REPORT
Community Services Director Parker invited the community to the Fourth of July Extravaganza,
advising that the Parade will begin at 10:00 AM. in Old Town and that the Family Fest will begin
at 1 :00 P.M. at the Ronald Reagan Sports Complex with the Fireworks Show beginning at 9:00
P.M.
Mr. Parker reminded the public of the many recreational activities available including the
S.MAR.T. Program, Movies in the Park Program, etc.
CSD GENERAL MANAGER'S REPORT
No additional comment
CSD BOARD OF DIRECTORS' REPORTS
No additional comments.
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CSD ADJOURNMENT
At 7:44 P.M., the Temecula Community Services District meeting was formally adjourned to
Tuesday, July 11, 2006, at 5:30 P.M., for a Closed Session, with regular session commencing at
7:00 P.M., City Council Chambers, 43200 Business Park Drive, Temecula, California.
Jeff Comerchero, President
ATTEST:
Susan W. Jones, MMC
City Clerk/District Secretary
[SEAL
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ITEM NO. 11
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Approvals
City Attorney
Director of Finance
City Manager
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TEMECULA COMMUNITY SERVICES DISTRICT
AGENDA REPORT
TO:
General Manager/Board of Directors
FROM:
Herman D. Parker, Director of Community Services
DATE:
July 11, 2006
SUBJECT:
Amendment to Graphic Design Agreement with Adkins Consulting
PREPARED BY:
Phyllis L. Ruse, Deputy Director of Community Services
RECOMMENDATION: That the Board of Directors approve the third Amendment to the
Agreement with Adkins Consulting in the amount of $9,525 for a total agreement amount of
$34,425 for the design of a brochure for the 2007 Temecu/a Presents season.
BACKGROUND: On February 10,2005, the City Manager executed an Agreementfor
graphic design work with Adkins Consulting for the Old Town Temecula Community Theater.
Subsequent to that, the City Manager has executed Amendment Nos. 1 and 2 to the Agreement,
making the total value of the Agreement $24,900. Some of the services provided by Adkins
Consulting have been:
o Design the Theater logo, tickets, color palette and other print materials
o Develop Theater grand opening and other promotional materials
o Design and implement the Theater website
o Design and layout the semi-annual Cultural Arts Brochure
One of the City's goals in operating the Theater has been to maintain a readily identifiable design so
that all theater materials and City-produced performances will be easily recognized by patrons.
Adkins Consulting has created an integrated and united design for all theater materials. Based on
the City's desire to preserve and expand the use of the design, Adkins Consulting is a sole source
for the theater graphic design services.
Staff is preparing for the second season of City-produced performances, Temecu/a Presents.
Some of the graphic design services needed to promote this series are brochures, stationary,
envelopes, signage, and other materials. A third amendmentto the existing Agreement is proposed
to provide for the necessary graphic design for these marketing materials.
FISCAL IMPACT: The cost of the additional graphic design services for the second
season Temecu/a Presents offerings is $9,925, making the total agreement with Adkins Consulting
$34,425. Sufficient funds are available in the TCSD fiscal year 2005/06 budget.
ATTACHMENTS:
Third Amendment to Agreement with Adkins Consulting
THIRD AMENDMENT TO AGREEMENT
BETWEEN TEMECULA COMMUNITY SERVICES DISTRICT
AND ADKINS DESIGN
GRAPHIC DESIGN SERVICES
THIS THIRD AMENDMENT is made and entered into as of July 11, 2006 by and
between the City of Temecula Community Services District, a municipal corporation ("City") and
Adkins Design Consulting AKA: Roberta W. Adkins ("Consultant/Artist"). In consideration of
the mutual covenants and conditions set forth herein, the parties agree as follows:
1. This Amendment is made with respect to the following facts and purposes:
A. On February 10, 2005 the City and Consultant/Artist entered into that
certain agreement entitled "City of Temecula Agreement for Graphic Design ("Agreement") in
the amount of $1,100.00.
B. On May 20, 2005 the agreement was amended to increase the payment
for services in the amount of $16,800.00 (Amendment #1).
C. On October 21, 2005 the agreement was amended to increase the
payment for services in the amount of $7,000.00 (Amendment #2).
D. The parties now desire to increase the payment for services in the
amount of $9, 525.00 and extend the term of the Agreement to June 30, 2007 and amend the
Agreement as set forth in this Amendment.
2. Section 1 Term of the Agreement is hereby amended to read as follows:
This Agreement shall commence on February 15, 2005 and shall remain and
continue in effect until tasks described herein are completed, but in no event later
than June 30, 2007 unless sooner terminated pursuant to the provisions of this
Agreement.
3. Section 4.a Pavment of the Agreement is hereby amended to read as follows:
a. The City agrees to pay Consultant/Artist monthly, in accordance with the payment
rates and schedules and terms set forth in Exhibit B for services described in Section
B of Exhibit A, attached hereto and incorporated herein by this reference as though
set forth in full. The third amendment amount shall not exceed Nine Thousand Five
Hundred and Twenty Five Dollars and No Cents ($9,525.00) for additional graphic
design services for the City of Temecula Cultural Arts programs for a total contract
amount, of Thirty Four Thousand Four Hundred Twenty Five Dollars and No
Cents ($34,425.00).
4. Exhibit A & B to the Agreement is hereby amended by adding thereto the items set
forth on Attachment "A" to this Amendment, which is attached hereto and
incorporated herein as though set forth in full.
5. Except for the changes specifically set forth herein, all other terms and conditions
of the Agreement shall remain in full force and effect.
R:\Finance\Purchasing\Agreements.06-07.A-L\Adkins Design Amend 3.FIN05-23 1
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed the day and year first above written.
CITY OF TEMECULA
BY:
Jeff Comerchero, President
ATTEST:
BY:
Susan W. Jones, MMC, City Clerk
Approved As to Form:
BY:
Peter M. Thorson, City Attorney
Adkins Design Consulting
Attn: Robbie Adkins, Principal
45981 Classic Way
Temecula, CA 92592
Phone 951-695-2662
BY:
NAME:
TITLE:
BY:
NAME:
TITLE:
(Two Signatures Required For Corporations)
R:\Finance\Purchasing\Agreements.06-07.A-L\Adkins Design Amend 3.FIN05-23 2
ATTACHMENT A
Exhibit A of the Agreement is hereby amended to read as follows:
TASKS TO BE PERFORMED
1. Consultant/Artist shall provide non-exclusive design and consulting services to the
Temecula Community Services District for various Cultural Arts programs as requested.
Prior to any design or work to be performed Consultant/Artist shall discuss the project
and design ideas with authorized City/Cultural Arts staff. The Consultant/Artist shall
obtain authorization to proceed from authorized City/Cultural Arts staff prior to starting
any work.
2. The City shall own all rights to any logotypes/artwork designed or developed by the
Consultant/Artist.
Exhibit B of the Agreement is hereby amended to read as follows:
PAYMENT RATES AND SCHEDULE
The City agrees to pay Consultant/Artist for work and/or services provided based on a
project cost quote provided by the Consultant/Artist and approved by authorized City/Cultural
Arts staff but in no event shall such sum(s) exceed 9,525.00.
R:\Finance\Purchasing\Agreements.06-07.A-L\Adkins Design Amend 3.FIN05-23 3
REDEVELOPMENT
AGENCY
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ITEM NO. 12
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I
MINUTES OF A REGULAR MEETING
OF
THE TEMECULA REDEVELOPMENT AGENCY
JUNE 13, 2006
A regular meeting of the City of Temecula Redevelopment Agency was called to order at 9:50
PM., in the City Council Chambers, 43200 Business Park Drive, Temecula, California.
ROLL CALL
PRESENT:
4
AGENCY MEMBERS:
Comerchero, Edwards, Washington,
and Naggar
ABSENT:
1
AGENCY MEMBERS:
Roberts
Also present were Executive Director Nelson, City Attorney Thorson, and City Clerk Jones.
PUBLIC COMMENTS
No comments.
RDA CONSENT CALENDAR
38 Minutes
RECOMMENDATION:
38.1 Approve the minutes of May 23, 2006.
MOTION: Agency Member Comerchero moved to approve the Consent Calendar. Agency
Member Edwards seconded the motion and voice vote reflected approval with the exceotion of
Agency Member Roberts who was absent.
RDA BUSINESS
39 Review and Adootion of FY2006-2007 Annual Ooeratina Budaet
RECOMMENDATION:
39.1 Adopt a resolution entitled:
RESOLUTION NO. RDA 06-04
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE TEMECULA
REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA ADOPTING THE FY
2006-07 ANNUAL OPERATING BUDGET AND ESTABLISHING CONTROLS ON
CHANGES IN APPROPRIATIONS
By way of a PowerPoint presentation, Executive Director Nelson highlighted the staff report (as
per agenda material and as was reviewed at the May 17, 2006, City Council Budget Workshop).
R:\Minutes\061306
With regard to the approval of the various budgets, Agency Member Comerchero commended
staff on its tremendous amount of effort and along with the Budget Workshop and noted that,
therefore, the Council, District, and Agency can easily proceed with these budget approvals.
MOTION: Agency Member Comerchero moved to adopt Resolution No. RDA 06-04. Agency
Member Edwards seconded the motion and electronic vote reflected approval with the
exceotion of Agency Member Roberts who was absent.
40 Review and Adootion of the FY 2007-11 Caoitallmorovement Budaet for the Redevelooment
Aaencv!RDA)
RECOMMENDATION:
40.1 Adopt a resolution entitled:
RESOLUTION NO. RDA 06-05
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE TEMECULA
REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA APPROVING THE
CAPITAL IMPROVEMENT PROGRAM FY 2007-11 AND ADOPTING THE
CAPITAL IMPROVEMENT BUDGET FOR FY 2006-07
By way of a PowerPoint presentation, Executive Director Nelson highlighted the staff report (as
per agenda material and as was reviewed at the May 17, 2006, City Council Budget Workshop).
MOTION: Agency Member Comerchero moved to adopt Resolution No. RDA 06-05. Agency
Member Washington seconded the motion and electronic vote reflected approval with the
exception of Agency Member Edwards who abstained with regard to the Dalton Project only
and Agency Member Roberts who was absent.
RDA EXECUTIVE DIRECTOR'S REPORT
No additional comment.
RDA AGENCY MEMBERS' REPORTS
No additional comment.
R:\Minutes\061306
2
RDA ADJOURNMENT
At 9:57 P.M., the Temecula Redevelopment Agency meeting was formally adjourned to
Tuesday, June 27, 2006, at 5:30 P.M., for a Closed Session, with regular session commencing
at 7:00 P.M., City Council Chambers, 43200 Business Park Drive, Temecula, California.
Michael S. Naggar, Chairman
ATTEST:
Susan W. Jones, MMC
City Clerk/Agency Secretary
[SEAL]
R:\Minutes\061306
3
MINUTES OF A REGULAR MEETING
OF
THE TEMECULA REDEVELOPMENT AGENCY
JUNE 27,2006
A regular meeting of the City of Temecula Redevelopment Agency was called to order at 7:44
P.M., in the City Council Chambers, 43200 Business Park Drive, Temecula, California.
ROLL CALL
PRESENT:
5
AGENCY MEMBERS:
Comerchero, Edwards, Roberts,
Washington, and Naggar
ABSENT:
o
AGENCY MEMBERS:
None
Also present were Executive Director Nelson, City Attorney Thorson, and City Clerk Jones.
PUBLIC COMMENTS
No comments.
RDA CONSENT CALENDAR
27 Old Town Billboard Lease Aareement
RECOMMENDATION
27.1 Approve a $43,500 Lease Agreement with Lamar Advertising Company for the Old
Town Billboard.
28 Aareement Between Melodv's Ad Works and the Redevelooment Aaencv for FY 2006-07
RECOMMENDATION
28.1 Approve an agreement with Melody's Ad Works in the amount of $31 ,415.00 for
promoting and marketing Special Events in Old Town.
29 Annual Contract for Kevser Marston Associates. Inc. for Real Estate Economic and
Affordable Housina Consultina Services
RECOMMENDATION
29.1 Approve an agreement with Keyser Marston Associates, Inc. in the amount of
$75,000 to provide as-needed Real Estate Economic Consulting Services and
authorize the Redevelopment Chairperson to execute the agreement;
29.2 Approve an agreement with Keyser Marston Associates, Inc. in the amount of
$50,000 to provide as-needed Affordable Housing Consulting Services and
authorize the Redevelopment Chairperson to execute the agreement.
R:\Minutes\062706
MOTION: Agency Member Washington moved to approve the Consent Calendar. Agency
Member Comerchero seconded the motion and electronic vote reflected unanimous approval.
RDA DEPARTMENTAL REPORT
28 Redevelooment Deoartmental Monthlv Reoort
RDA EXECUTIVE DIRECTOR'S REPORT
No additional comment.
RDA AGENCY MEMBERS' REPORTS
No additional comment.
RDA ADJOURNMENT
At 7:45 P.M., the Temecula Redevelopment Agency meeting was formally adjourned to
Tuesday, July 11, 2006, at 5:30 P.M., for a Closed Session, with regular session commencing at
7:00 P.M., City Council Chambers, 43200 Business Park Drive, Temecula, California.
Michael S. Naggar, Chairman
ATTEST:
Susan W. Jones, MMC
City Clerk/Agency Secretary
[SEAL]
R:\Minutes\062706
2
TEMECULA PUBLIC
FINANCING AUTHORITY
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ITEM NO. 13
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MINUTES OF A REGULAR MEETING
OF THE TEMECULA PUBLIC FINANCING AUTHORITY
MAY 23,2006
A regular meeting of the City of Temecula Public Financing Authority was called to order at 8:10
P.M., in the City Council Chambers, 43200 Business Park Drive, Temecula.
ROLL CALL
PRESENT:
5
AUTHORITY MEMBERS: Edwards, Naggar, Roberts, Washington,
and Comerchero
ABSENT:
o
AUTHORITY MEMBER: None
Also present were Executive Director Nelson City Attorney Thorson and Deputy City Clerk
Ballreich.
PUBLIC COMMENTS
No input.
TPFA CONSENT CALENDAR
29 Minutes
RECOMMENDATION:
29.1 Approve the minutes of February 28, 2006.
30 Refundina of Variable Rate Bonds of the Temecula Public Financina Authoritv for
Community Facilities District No. 01-2 !Harveston)
RECOMMENDATION:
30.1 Adopt a resolution entitled:
RESOLUTION NO. TPFA 06-02
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE TEMECULA PUBLIC
FINANCING AUTHORITY APPROVING A THIRD SUPPLEMENTAL INDENTURE
OF TRUST AND AUTHORIZING AND DIRECTING OTHER ACTIONS RELATING
TO THE REFUNDING OF OUTSTANDING BONDS FOR COMMUNITY
FACILITIES DISTRICT NO. 01-2 (HARVESTON)
MOTION: Authority Member Naggar moved to approve the Consent Calendar. Authority
Member Comerchero seconded the motion and electronic vote reflected unanimous approval.
R\M inutes.tpfa\052306
ADJOURNMENT
At 8:11 P.M., the Temecula Public Financing Authority Meeting was formally adjourned.
Ron Roberts, Chairman
ATTEST:
Susan W. Jones, CMC
City Clerk/Agency Secretary
[SEAL]
R\M inutes.tpfa\052306
2
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ITEM NO. 14
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Approvals
City Attorney
Director of Finance
City Manager
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TEMECULA PUBLIC FINANCING AUTHORITY
AGENDA REPORT
TO:
Executive Director/Authority Members
FROM:
Genie Roberts, Director of Finance
DATE:
July 11, 2006
SUBJECT:
Conversion of Interest Rate on Outstanding Variable Rate Special Tax Bonds,
and Issuance of Special Tax Refunding Bonds, for Community Facilities District
No. 01-2 (Harveston)
PREPARED BY:
Polly von Richter, Senior Debt Analyst
RECOMMENDATION:
That the Board of Directors:
1. Adopt a resolution entitled:
RESOLUTION NO. TPFA 06-
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE
TEMECULA PUBLIC FINANCING AUTHORITY OF THE CITY OF
TEMECULA AUTHORIZING THE CONVERSION OF VARIABLE
RATE BONDS TO FIXED RATE BONDS, AND THE ISSUANCE OF
TWO SERIES OF SPECIAL TAX REFUNDING BONDS RELATED
TO THE TEMECULA PUBLIC FINANCING AUTHORITY
COMMUNITY FACILITIES DISTRICT NO. 01-2 (HARVESTON),
APPROVING AND DIRECTING THE EXECUTION OF A FISCAL
AGENT AGREEMENT AND APPROVING OTHER RELATED
DOCUMENTS AND ACTIONS
BACKGROUND: On August 29, 2002, the Authority issued $17,310,000 principal
amount of variable rate bonds for its Community Facilities District No. 01-2 (Harveston) (the "CFD').
The variable rate bonds are payable from special taxes levied on property located in the CFD. The
bonds were issued under an Indenture of Trust (the "Indenture"), as variable rate bonds.
City Staff, working with the consultants to the Authority, have determined that it is in the best interest
of the Authority and the homeowners in the CFD to convert the interest rate on the outstanding
variable rate bonds to fixed rates, and to refund the converted bonds with two series of new fixed
rate refunding bonds, in light of the development that has occurred in the CFD and in order to
establish fixed annual debt service obligations for the bonded indebtedness of the CFD. The
conversion of the variable rate bonds to fixed rate bonds, and the issuance of the fixed rate
refunding bonds, will result in a fixed debt service obligation for the CFD at current market interest
rates, and thereby remove any risk of major fluctuation in special tax levies from year to year in the
CFD.
The refunding bonds are expected to be issued in two series in order to obtain a lower overall
interest cost. One series is expected to be insured by a municipal bond insurer, and the other series
is expected to be uninsured. This form of bond structure has been used for other community
facilities districts in the State where significant development has occurred, as is the case in the CFD.
It is also expected that the bond insurance company will provide a surety bond for all or a portion of
the reserve fund to be established for the senior series of the refunding bonds, which will reduce the
principal amount of the refunding bonds that would otherwise need to be issued to repay the
outstanding bonds and provide adequate reserves for the refunding bonds.
In connection with the proposed interest rate conversion and bond refunding, there has been
submitted to the Board of Directors for its approval a Fiscal Agent Agreement providing for the
issuance of the two series of fixed rate refunding bonds of the Authority for the CFD, as well as a
Preliminary Official Statement describing the refunding bonds, a bond purchase agreement to be
used in connection with the sale of the refunding bonds and a Continuing Disclosure Agreement
relating to the refunding bonds. If the Resolution is adopted by the Board of Directors, it is expected
that the refunding bonds will be sold to Stone & Youngberg LLC in mid or late August, and
conversion of the interest rate on the outstanding variable rate bonds to a fixed rate and the closing
for the refunding transaction will occur on September 1 ,t
FISCAL IMPACT: The outstanding variable rate bonds are not, and the converted fixed
rate bonds and the refunding fixed rate bonds will not be, obligations of the City of Temecula, or
general obligations of the Authority or the CFD, but are and will be, respectively, limited obligations
of the Authority for the CFD secured solely by the special taxes levied in the CFD and amounts held
in certain funds and accounts established under the documents providing for the terms of the
respective bonds. All costs of converting the interest rate on the outstanding bonds and the
refunding of the converted fixed rate bonds will be paid from amounts in the funds and accounts
currently held under the Indenture forthe variable rate bonds, orfrom the proceeds of the refunding
bonds. All administrative costs of the CFD and the bond program are paid from proceeds of the
special taxes levied in the CFD. The CFD is only authorized to levy the special taxes on land
included within the boundaries of the CFD.
ATTACHMENTS:
Resolution
Fiscal Agent Agreement
Bond Purchase Agreement
Preliminary Official Statement
Continuing Disclosure Agreement
RESOLUTION NO. TPFA 06-D
A RESOLUTION OF THE BOARD OF DIRECTORS OF
THE TEMECULA PUBLIC FINANCING AUTHORITY
AUTHORIZING THE CONVERSION OF VARIABLE RATE
BONDS TO FIXED RATE BONDS, AND THE ISSUANCE
OF TWO SERIES OF SPECIAL TAX REFUNDING BONDS
RELATED TO THE TEMECULA PUBLIC FINANCING
AUTHORITY COMMUNITY FACILITIES DISTRICT NO. 01-
2 (HARVESTON), APPROVING AND DIRECTING THE
EXECUTION OF A FISCAL AGENT AGREEMENT AND
APPROVING OTHER RELATED DOCUMENTS AND
ACTIONS
THE BOARD OF DIRECTORS OF THE TEMECULA PUBLIC FINANCING
AUTHORITY DOES HEREBY RESOLVE AS FOLLOWS:
Section 1. This Board of Directors has conducted proceedings under and
pursuant to the Mello-Roos Community Facilities Act of 1982 (the "Law"), to form the
Temecula Public Financing Authority Community Facilities District No. 01-2 (Harveston)
(the "District"), to authorize the levy of special taxes upon the land within the District,
and to issue bonds secured by the special taxes the proceeds of which are to be used
to finance certain public improvements and refund certain prior indebtedness.
Section 2. On August 29, 2002, the Temecula Public Financing Authority (the
"Authority"), for and on behalf of the District, issued $17,310,000 principal amount of
Temecula Public Financing Authority Community Facilities District No. 01-2 (Harveston)
Variable Rate Demand Special Tax Bonds, 2002 Series A (the "Prior Variable Rate
Bonds"), the Prior Variable Rate Bonds having been issued under an Indenture of Trust,
dated as of August 1, 2002 (as amended, the "Prior Indenture") to finance facilities
authorized to be funded by the District and bonds authorized to be refunded by the
District, and this Board of Directors has determined that, in light of the development that
has occurred in the District and in order to establish fixed annual debt service
obligations for the bonded indebtedness of the District, it is in the best interests of the
Authority and the District that the Prior Variable Rate Bonds be converted under the
provisions of the Prior Indenture to fixed rate bonds (the "Converted Fixed Rate Bonds")
and that the Converted Fixed Rate Bonds be refunded immediately following such
conversion.
Section 3. There have been submitted to this Board of Directors for its
approval a Fiscal Agent Agreement (the "Fiscal Agent Agreement") providing for the
issuance of two series of special tax refunding bonds of the Authority for the District
(collectively, the "Bonds") and the use of the proceeds of the Bonds to refund, in whole,
the Converted Fixed Rate Bonds, as well as a Preliminary Official Statement (the
"Preliminary Official Statement") describing the Bonds, a bond purchase agreement to
be used in connection with the sale of the Bonds (the "Purchase Contract") and a
Continuing Disclosure Agreement relating to the Bonds (the "Continuing Disclosure
Agreement"), and this Board of Directors, with the aid of City of Temecula staff, has
reviewed said documents and found them to be in proper order.
Section 4. All conditions, things and acts required to exist, to have happened
and to have been performed precedent to and in the issuance of the Bonds as
contemplated by this Resolution and the documents referred to herein exist, have
happened and have been performed in due time, form and manner as required by the
laws of the State of California.
Section 5. This Board of Directors hereby authorizes the conversion of the Prior
Variable Rate Bonds to Fixed Rate Bonds (as such term is defined in the Prior
Indenture, and referred to in this Resolution as the "Converted Fixed Rate Bonds"). The
Executive Director, the Treasurer and the other officers and agents of the Authority are
hereby authorized and directed to take all actions necessary under the Prior Indenture
to so convert the Prior Variable Rate Bonds to the Converted Fixed Rate Bonds,
including but not limited to the delivery of all notices required under Section 2.02(c) of
the Prior indenture. The Conversion Date (as defined in the Prior Indenture) shall be
scheduled to occur on the closing date for the Bonds, and amounts held under the Prior
Indenture and proceeds of the sale of the Prior Bonds shall be used to pay the
Purchase Price (as defined in the Prior Indenture) of the Prior Variable Rate Bonds
when the same have been tendered in connection with the conversion.
Section 6. Pursuant to the Law, this Resolution and the Fiscal Agent Agreement,
two series of special tax bonds of the Authority for the District, in an aggregate principal
amount not to exceed $19,000,000, are hereby authorized to be issued, such bonds to
be designated the "Temecula Public Financing Authority Community Facilities District
No. 01-2 (Harveston) 2006 Special Tax Refunding Bonds, Series A" and "Temecula
Public Financing Authority Community Facilities District No. 01-2 (Harveston) 2006
Special Tax Refunding Bonds, Subordinate Series B." The Bonds shall be executed in
the respective forms set forth in and otherwise as provided in the Fiscal Agent
Agreement.
In furtherance of the issuance of the Bonds, this Board of Directors hereby
makes the following findings and determinations: (a) it is prudent in the management of
the fiscal affairs of the Authority, this Board of Directors and the District to issue the
Bonds for the purpose of refunding the Converted Fixed Rate Bonds; (b) the total net
interest cost to maturity on the Bonds plus the principal amount of the Bonds will not
exceed the total net interest cost to maturity of the Converted Fixed Rate Bonds plus
the principal amount of the Prior Bonds (by reason of the requirement for sale of the
Bonds in clause (d) of Section 8 below); and (c) the Bonds satisfy the requirements of
Section 53345.8(a) of the Law in that the assessed value of the land in the District is
more than three times the principal amount of the Bonds, based upon the Summary
Appraisal Report of Stephen G. White, MAl (the "Appraiser") of the property in the
District dated February 3, 2006, and the Supplemental Report of the Appraiser dated
May 11 , 2006.
For purposes of Section 53363.2 of the Act, (i) it is expected that the purchase of
the Bonds will occur on or after August 1, 2006, (ii) the date, denomination, maturity
dates, places of payment and form of each series of the Bonds shall be as set forth in
the Fiscal Agent Agreement, (iii) the minimum rate of interest to be paid on either series
of the Bonds shall be one percent (1 %) with the actual rate or rates to be set forth in the
Fiscal Agent Agreement as executed, (iv) the place of payment for the Converted Fixed
Rate Bonds shall be as set forth in the Prior Indenture; and (v) the designated costs of
issuing the Bonds shall be as described in Section 53363.8(a) of the Law, and as
otherwise described in the Fiscal Agent Agreement hereafter approved, in the Official
Statement for the Bonds and the closing certificates for the Bonds, including Bond
Counsel and Disclosure Counsel fees and expenses, Underwriter's discount, financial
advisor fees and expenses, appraisal costs, printing costs for the Official Statement,
initial fiscal agent fees, and costs of City staff incurred in connection with the sale and
issuance of the Bonds.
Section 7. The Fiscal Agent Agreement with respect to the Bonds, in the form
presented to this Board of Directors at this meeting, is hereby approved. The Executive
Director is hereby authorized and directed to execute and deliver the Fiscal Agent
Agreement in said form, with such additions thereto or changes therein as are approved
by the Executive Director upon consultation with the Authority's General Counsel and
Bond Counsel, the approval of such additions or changes to be conclusively evidenced
by the execution and delivery of the Fiscal Agent Agreement by the Executive Director.
The date, manner of payment, interest rate or rates, interest payment dates,
denominations, form, registration privileges, manner of execution, place of payment,
terms of redemption and other terms of the Bonds shall be as provided in the Fiscal
Agent Agreement as finally executed.
Section 8. The Purchase Contract between the Authority and Stone &
Youngberg LLC (the "Underwriter"), in the form presented to the Board of Directors at
this meeting, is hereby approved. The Executive Director and the Treasurer, each
acting alone, are hereby authorized and directed to accept the offer of the Underwriter
to purchase the Bonds contained in the Purchase Contract; provided that (a) the
aggregate principal amount of the Bonds sold thereby is not in excess of $19,000,000,
(b) the true interest cost of the Bonds is not in excess of 6.0%, (c) the underwriter's
discount is not in excess of 2.0% of the aggregate principal amount of the Bonds and
(d) the requirements of clause (b) of the second paragraph of Section 6 above are
satisfied. The Executive Director and the Treasurer, each acting alone, are hereby
authorized and directed to execute and deliver the Purchase Contract in said form (if the
requirements of the preceding sentence are satisfied), with such additions thereto or
changes therein as are recommended or approved by the officer executing such
document upon consultation with the Authority's General Counsel and Bond Counsel,
the approval of such additions or changes to be conclusively evidenced by the
execution and delivery of the Purchase Contract by the Authority.
Section 9. The Preliminary Official Statement, in the form presented to the Board
of Directors at this meeting, is hereby approved. The Executive Director is hereby
authorized and directed, for and in the name and on behalf of the Authority, to make
changes to the Preliminary Official Statement prior to its dissemination to prospective
investors, and to bring the Preliminary Official Statement into the form of a final official
statement (the "Official Statement") including such additions thereto or changes therein
as are recommended or approved by such officer upon consultation with the Authority's
General Counsel and Disclosure Counsel. The Executive Director is hereby authorized
and directed to execute and deliver the Official Statement. The Underwriter is hereby
authorized to distribute copies of the Preliminary Official Statement to persons who may
be interested in the purchase of the Bonds and is directed to deliver copies of the
Official Statement to all actual purchasers of the Bonds.
The Executive Director is hereby authorized to execute a certificate or certificates
to the effect that the Official Statement and the Preliminary Official Statement were
deemed "final" as of their respective dates for purposes of Rule 15c2-12 of the
Securities Exchange Act of 1934, and is authorized to so deem such statements final.
Section 10. The Continuing Disclosure Agreement related to the Bonds, in the
form presented to the Board of Directors at this meeting, is hereby approved. The
Executive Director is hereby authorized and directed, for and in the name of and on
behalf of the Authority, to execute and deliver the Continuing Disclosure Agreement in
said form, with such additions thereto or changes therein as are deemed necessary,
desirable or appropriate by the Executive Director upon consultation with the Authority's
General Counsel and Disclosure Counsel, the approval of such changes to be
conclusively evidenced by the execution and delivery by the Executive Director of the
Continuing Disclosure Agreement.
Section 11. The Authority hereby covenants, for the benefit of the Bondowners,
to commence and diligently pursue to completion any foreclosure action regarding
delinquent installments of any amount levied as a special tax for the payment of interest
or principal of the Bonds, said foreclosure action to be commenced and pursued as
more completely set forth in the Fiscal Agent Agreement.
Section 12. The Bonds, when executed, shall be delivered to the Fiscal Agent
(as defined in the Fiscal Agent Agreement) for authentication. The Fiscal Agent is
hereby requested and directed to authenticate the Bonds by executing the Fiscal
Agent's certificate of authentication and registration appearing thereon, and to deliver
the Bonds, when duly executed and authenticated, to the Underwriter in accordance
with written instructions executed on behalf of the Authority by the Executive Director,
which instructions such officer is hereby authorized and directed, for and in the name
and on behalf of the Authority, to execute and deliver to the Fiscal Agent. Such
instructions shall provide for the delivery of the Bonds to the Underwriter upon payment
of the purchase price therefor.
Section 13. All actions heretofore taken by the officers and agents of the
Authority with respect to the sale and issuance of the Bonds and the refunding of the
Prior Bonds are hereby approved, confirmed and ratified, and the proper officers of the
Authority are hereby authorized and directed to do any and all things and take any and
all actions and execute any and all certificates, agreements and other documents
(including but not limited to those related to bond insurance and a reserve fund surety
bond for the Bonds, and instructions to the trustee for the Converted Fixed Rate Bonds
relative to their payment and the disposition of funds held under the Prior Indenture,
which they, or any of them, may deem necessary or advisable in order to consummate
the conversion of the Prior Variable Rate Bonds to the Converted Fixed Rate Bonds, the
lawful issuance and delivery of the Bonds and the refunding of the Converted Fixed
Rate Bonds in accordance with this Resolution, and any certificate, agreement, and
other document described in the documents herein approved.
Section 14. This Resolution shall take effect upon its adoption.
PASSED, APPROVED, AND ADOPTED by the Board of Directors of the Temecula
Public Financing Authority this 11 th day of July , 2006.
Ron Roberts, Chairperson
ATTEST:
Susan W. Jones, MMC
City Clerk/Board Secretary
[SEAL]
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss
CITY OF TEMECULA )
I, Susan W. Jones, MMC, City Clerk/Board Secretary of the Temecula Public
Financing Authority, do hereby certify that the foregoing Resolution No. TPFA 06- was
duly and regularly adopted by the Board of Directors of the Temecula Public Financing
Authority at a meeting thereof held on the 11th day of July, 2006, by the following vote:
AYES:
BOARD MEMBERS:
NOES:
BOARD MEMBERS:
ABSENT:
BOARD MEMBERS:
ABSTAIN:
BOARD MEMBERS:
Susan W. Jones, MMC
City Clerk/Board Secretary
TEMECULA PUBLIC FINANCING AUTHORITY
COMMUNITY FACILITIES DISTRICT NO. 01-2
(HARVESTON)
2006 SPECIAL TAX REFUNDING BONDS, SERIES A
2006 SPECIAL TAX REFUNDING BOND, SUBORDINATE SERIES B
FISCAL AGENT AGREEMENT
Quint & Thimmig LLP
FISCAL AGENT AGREEMENT
by and between the
TEMECULA PUBLIC FINANCING AUTHORITY
and
U. S. BANK NATIONAL ASSOCIATION,
as Fiscal Agent
Dated as of September 1, 2006
Relating to:
$
Temecula Public Financing Authority
Community Facilities District No. 01-2
(Harveston)
2006 Special Tax Refunding Bonds, Series A
and
$
Temecula Public Financing Authority
Community Facilities District No. 01-2
(Harveston)
2006 Special Tax Refunding Bonds, Subordinate Series B
SilS/06
5;23/06
616106
6/12/06
6;22/06
20009.0R:TRR16
Section 1.01.
Section 1.02.
Section 1.113.
Section 2.111.
Section 2.02.
Section 2.03.
Section 2.04.
Section 2.05.
Section 2'(lh.
Section 2.117.
Section 2.08.
Section 2.09.
Section 2.10.
Section 2.11.
Section 2.12.
Section 2.13.
Section 2.12.
Section 3.01.
Section 3'()2.
Section 3.113.
Section 4.01.
Section 4.02.
Section 4.03.
Section 4.114.
Section 4.115.
Section 4.lIh.
Section 4.07.
Section 4.08.
Section 5.111.
Section 5'()2.
Section 5.113.
Section 5.04.
Section 5.05.
TABLE OF CONTENTS
ARTICLE I
STATUTORY AUTHORITY AND DEFINITIONS
A uthori ty for this Agreement....................................................................................................... 3
Agreement for Benefit of Owners of the Bonds .........................................................................3
Definitions................................................................................................................... ....................3
ARTICLE II
THE SERIES 2006 BONDS
Principal Amount; Designation.................................................................................................. 13
Terms of the Series 2006 Bonds ..................................................................................................13
Redemption of the Series 2006 Bonds........................................................................................ 15
Form of the Series 2006 Bonds ....................................................................................................19
Execution of the Series 21111h Bonds ............................................................................................19
Transfer of Series 21111h Bonds ..................................................................................................... 211
Exchange of Series 21 II Ih Bonds................................................................................................... 21 I
Bond Re gister .............................................................................................................................. .. 21
T em porary Bonds......................................................................................................................... 21
Bonds Mutilated, Lost, Destroyed or Stolen ............................................................................. 21
Limited Obligation .......................................................................................................................22
No Acceleration.................................................................................................................. .......... 22
Book-En try System....................................................................................................................... 22
Issuance of Parity Bonds............................................................................................................. 23
ARTICLE III
ISSUANCE OF SERIES 2006 BONDS
Issuance and Delivery of 2006 Bonds ........................................................................................ 26
Pledge of Special Tax Revenues and Amounts in Funds and Subaccounts .........................2h
V alidi ty of Bonds......................................................................................................................... . 2h
ARTICLE IV
FUNDS AND ACCOUNTS
Application of Proceeds of Sale of 2006 Bonds and Other Moneys....................................... 27
1m provement Fund ......................................................................................................................27
Costs of Issllance Fllnd ................................................................................................................ 28
Reserve Fund.......................................................................................................................... ...... 29
Bond Fund.......................................................................................................................... ........... 33
Special Tax Fund.......................................................................................................................... 34
Adlllinistrative Expense Fllnd.................................................................................................... 35
Refunding Fund.......................................................................................................................... .. 36
ARTICLE V
OTHER COVENANTS OF THE AUTHORITY
Punctual Payment...................................................................................................................... .. 37
Limited Ob ligation....................................................................................................................... 37
~~cl~~~~..................................................................................................y
Against Enclllll brances ................................................................................................................ 37
Books and Records....................................................................................................................... 37
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Section 5.lIh.
Section 5.07.
Section 5.08.
Section 5.09.
Section 5.111.
Section 5.11.
Section 5.12.
Section 5.13.
Section 5.14.
Section 5.15.
Section 5.1h.
Section 5.17.
Section 5.18.
Section 5.19.
Section h.lI1.
Section 6.02.
Section 6.03.
Section 6.04.
Section h.1I5.
Section 7.111.
Section 7.02.
Section 7.03.
Section 7.04.
Section 7.115.
Section 7.lIh.
Section 8.01.
Section 8.02.
Section 8.03.
Section 8.114.
Section 8.115.
Section 8.lIh.
Section 8.07.
Section 9.01.
Section 9'()2.
Section 9.113.
Section 9.114.
Section 9.05.
Section 9.06.
Protection of Security and Rights of Owners............................................................................ 37
Compliance with Law ..................................................................................................................38
Collection of Special Tax Revenues ...........................................................................................38
Covenant to Foreclose.................................................................................................................. 39
Further Assurances.................................................................................................................... .. 39
Private Activity Bond Limitations.............................................................................................. 41)
Federal G uaran tee Prohibition................................................................................................... 41)
Rebate Requirement.................................................................................................................. ...40
No Arbitrage..................................................................................................................... ............40
Yie ld of the Bonds........................................................................................................................ 40
Maintenance of Tax - Exemption.................................................................................................. 41)
Con tin uing Disclosure to Owners.............................................................................................. 41
Reduction of Special Taxes.......................................................................................................... 41
Limits on Special Tax Waivers and Bond Tenders ..................................................................41
ARTICLE VI
INVESTMENTS, DISPOSITION OF INVESTMENT PROCEEDS,
LIABILITY OF THE AUTHORITY
Deposit and Investment of Moneys in Funds...........................................................................42
Limited Obligation ....................................................................................................................... 43
Liability of Au thori ty ................................................................................................................... 43
Employment of Agents by Authority ........................................................................................ 44
Remedies of Bond Insurer Upon DefauIL................................................................................44
ARTICLE VII
THE FISCAL AGENT
A ppoin tmen t of Fiscal Agent...................................................................................................... 4h
Liability of Fiscal Agent............................................................................................................... 47
Books and Records; Infornla tion ................................................................................................ 48
Notice to Fiscal Agent.................................................................................................................. 48
Compensation, Indemnification................................................................................................. 49
Bond Insurer Rights Regarding the Fiscal Agent.....................................................................49
ARTICLE VIII
MODIFICATION OR AMENDMENT OF THIS AGREEMENT
Amendments Permitted.............................................................................................................. 50
('wners' Meetings...................................................................................................................... .. 51
Procedure for Amendment with Written Consent of llwners ............................................... 51
Dis'lualified Bonds....................................................................................................................... 51
Effect of Su pplemen tal Agreement............................................................................................ 52
Endorsement or Replacement of Bonds Issued After Amendments..................................... 52
Amendatory Endorsement of Bonds......................................................................................... 52
ARTICLE IX
MISCELLANEOUS
Benefits of Agreement Limited to Parties ................................................................................. 53
Successor is Deemed Included in All References to Predecessor .......................................... 53
Discharge of Agreement.............................................................................................................. 53
Execution of Documents and Proof of Ownership by Owners .............................................. 54
Waiver of Personal Liability....................................................................................................... 54
Notices to and Demands on Authority, Fiscal Agent and Bond Insurer .............................. 55
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Section 9.117.
Section 9.08.
Section 9.09.
Section 9.10.
Section 9.11.
Section 9.12.
Section 9.13.
Section 9.14.
Section Il1.01.
Section 111.112.
State Reporting Re'luiremen ts .................................................................................................... 55
Partial Invalidity..................................................................................................................... ...... 56
IT ne!aimed Moneys...................................................................................................................... 57
Applicable Law .............................................................................................................................57
Conflict with Act ..........................................................................................................................57
Cone! usive Evidence of Regularity............................................................................................ 57
Payment on Business Day........................................................................................................... 57
Counterparts.................................................................................................................. ............... 57
ARTICLE X
BOND INSURANCE PROVISIONS
Payment Procedure Pursuant to the Bond Insurance Policy.................................................. 58
Rights of Bond Insurer................................................................................................................. 59
EXHIBIT A - FORM OF SERIES 2006A BOND
EXHIBIT B - FORM OF SERIES 2006B BOND
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FISCAL AGENT AGREEMENT
THIS FISCAL AGENT AGREEMENT (the "Agreement"), dated as of September 1, 2006,
is by and between the Temecula Public Financing Authority, a joint exercise of powers
authority organized and existing wlder and by virtue of the laws of the State of Califomia (the
"Authority") for and on behalf of the Temecula Public Financing Authority Community
Facilities District No. 01-2 (Harveston) (the "District"), and U.s. Bank National Association, a
national banking association duly organized and existing under the laws of the United States of
America, as fiscal agent (the "Fiscal Agent").
RECITALS:
WHEREAS, the Board of Directors of the Authority has formed the District wlder the
provisions of the Mello-Roos Commtmity Facilities Act of 1982, as amended (Section 53311, et
seq. of the Califomia Govemment Code) (the "Act") and Resolution No. TPFA 02-03 of the
Board of Directors of the Authority adopted on March 26, 2002 (the "Resolution of Formation");
WHEREAS, the Board of Directors of the Authority, as the legislative body for the
District, is authorized under the Act to levy special taxes to pay for the costs of the District and
to authorize the issuance of bonds secured by said special taxes tmder the Act;
WHEREAS, tmder the provisions of the Act, on August 29, 2002, the Authority, for and
on behalf of the District, issued $17,310,000 aggregate initial principal amowlt of its Temecula
Public Financing Authority Commtmity Facilities District No. 01-2 (Harveston) Variable Rate
Demand Special Tax Bonds, 2002 Series A (the "2002 Variable Rate Bonds"), wlder the pursuant
to an Indenture of Trust, dated as of August 1, 2002 (as amended and currently in effect, the
"Prior hldenture"), between tile AutllOrity and tile Fiscal Agent (in its capacity as trustee
thereunder), and the net proceeds of the 2002 Variable Rate Bonds were used to finance
facilities autllOrized to be fWlded by tile District and to refwld bonds secured by liens on
property in the District;
WHEREAS, on September 1, 2006, the Authority, tmder and pursuant to the terms of
tile Prior hldenture, converted tile 2002 Variable Rate Bonds to Fixed Rate Bonds (as defined in
the Prior Indenture) which bonds, as so converted, are referred to herein as the "Prior Bonds";
and
WHEREAS, tile Board of Directors of tile AutllOrity has determined to refwld tile Prior
Bonds in full;
WHEREAS, tmder the provisions of the Act, on July 11, 2006 the Board of Directors of
tile AutllOrity adopted its Resolution No. TPFA 06- (tile "Resolution"), which resolution
authorized the issuance and sale of the Temecula Public Financing Authority Commtmity
Facilities District No. 01-2 (Harveston) 2006 Special Tax Refwlding Bonds, Series A (tile "Series
2006A Bonds") and the Temecula Public Financing Authority Commtmity Facilities District No.
01-2 (Harveston) 2006 Special Tax Refwlding Bonds, Subordinate Series B (tile "Series 2006By
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Bonds, and collectively with the Series 2006A Bonds, the "Series 2006 Bonds") in an aggregate
principal amOlmt of not to exceed $19,000,000 for the purpose of reftmding the Prior Bonds, and
authorized the execution of this Agreement;
WHEREAS, the repayment of the scheduled principal of and interest on the Series
2006A Bonds will be guaranteed tmder the terms of a financial guaranty insurance policy (the
"Bond Insurance Policy") provided by , a insurance company
(the "Bond Insurer"); and
WHEREAS, it is in the public interest and for the benefit of the Authority, the District
and the owners of the Series 2006 Bonds that the Authority enter into this Agreement to
provide for the issuance of the Series 2006 Bonds, the disbursement of proceeds of the Series
2006 Bonds, the disposition of the special taxes securing the Series 2006 Bonds and the
administration and payment of the Series 2006 Bonds; and
WHEREAS, the Authority has determined that all things necessary to cause the Series
2006 Bonds, when executed by the Authority for the District and issued as in the Resolution
and this Agreement provided, to be legal, valid and binding and special obligations of the
Authority for the District in accordance with their terms, and all things necessary to cause the
creation, authorization, execution and delivery of this Agreement and the creation,
authorization, execution and issuance of the Series 2006 Bonds, subject to the terms hereof, have
in all respects been duly authorized.
AGREEMENT:
NOW, THEREFORE, in consideration of the covenants and provisions herein set forth
and for other valuable consideration the receipt and sufficiency of which is hereby
acknowledged, the parties hereto do hereby agree as follows:
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ARTICLE I
STATUTORY AUTHORITY AND DEFINITIONS
Section 1.01. AlIthoritv for this A\!reement. This Agreement is entered into pursuant to
the provisions of the Act and the Resolution.
Section 1.02. A\!reement for Benefit of Owners of the Bonds, Except as otherwise
specifically set forth herein, the provisions, covenants and agreements herein set forth to be
performed by or on behalf of the Authority shall be for the equal benefit, protection and
security of the Owners of the Bonds. All of the Bonds, without regard to the time or times of
their issuance or maturity, shall be of equal rank without preference, priority or distinction of
any of the Bonds over any other thereof, except as expressly provided in or permitted by this
Agreement. The Fiscal Agent may become the Owner of any of the Bonds in its own or any
other capacity with the same rights it would have if it were not Fiscal Agent.
Section 1.03. Definitions. Unless the context otherwise requires, the terms defined in
this Section 1.03 shall, for all purposes of this Agreement, of any Supplemental Agreement, and
of any certificate, opinion or other document herein mentioned, have the meanings herein
specified. All references herein to "Articles," "Sections" and other subdivisions are to the
corresponding Articles, Sections or subdivisions of this Agreement, and the words "herein,"
"hereof," "herewlder" and other words of similar import refer to this Agreement as a whole
and not to any particular Article, Section or subdivision hereof.
"Ac<!"isition A\!reement" means the Acquisition Agreement, dated as of August 1, 2002,
between the Authority and Harveston, LLC, as originally executed and as it may be amended
from time to time.
"Act" means the Mello-Roos Community Facilities Act of 1982, as amended, being
Sections 53311 et seq. of the Califomia Govemment Code.
"Administrative Fxnenses" means costs directly related to the administration of the
District consisting of the costs of computing the Special Taxes and preparing the annual Special
Tax collection sclledules (whether by the Treasurer or designee thereof or both) and the costs of
collecting the Special Taxes (whether by the COlmty or otherwise); the costs of remitting the
Special Taxes to the Fiscal Agent; fees and costs of the Fiscal Agent (including its legal cowlsel)
in the discharge of the duties required of it tmder this Agreement; the costs of the Authority,
the City or any designee of either the Authority or the City of complying with the disclosure
provisions of the Act, the Continuing Disclosure Agreement and this Agreement, including
those related to public inquiries regarding the Special Tax and disclosures to Bondowners and
the Original Purchaser; the costs of the Authority, the City or any designee of either the
Authority or the City related to an appeal of the Special Tax; any amowlts required to be
rebated to the federal govemment in order for the Authority to comply with Section 5.13; costs
of the City, the Authority, the Fiscal Agent or the Prior Trustee related to the refwlding and
discharge of the Prior Bonds; an allocable share of the salaries of the City staff directly related
to tile foregoing and a proportionate amount of City general administrative overhead related
thereto. Administrative Expenses shall also include amOlmts advanced by the Authority or the
City for any administrative purpose of tile District, including costs related to prepayments of
Special Taxes, recordings related to such prepayments and satisfaction of Special Taxes,
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amowlts advanced to ensure compliance with Section 5.13 or Article X, administrative costs
related to the administration of any joint commtmity facilities agreement regarding the District,
and the costs of commencing and pursuing foreclosure of delinquent Special Taxes.
"Administrative EXDense FWld" means the fund by that name established by Section
4.07(A) hereof.
"A2'reement" means this Fiscal Agent Agreement, as it may be amended or
supplemented from time to time by any Supplemental Agreement adopted pursuant to the
provisions hereof.
"Annual Debt Service" means, for each Bond Year, the sum of (i) the interest due on the
Outstanding Bonds in such Bond Year, assuming that the Outstanding Bonds are retired as
scheduled (including by reason of the provisions of Section 2.03(A)(ii) providing for mandatory
sinking payments and any similar provisions with respect to mandatory sinking payments
tmder any Supplemental Agreement providing for the issuance of Parity Bonds), and (ii) the
principal amowlt of the Outstanding Bonds due in such Bond Year (including any mandatory
sinking payment due in such Bond Year pursuant to Section 2.03(A)(ii) and any similar
provisions with respect to mandatory sinking payments wlder any Supplemental Agreement
providing for the issuance of Parity Bonds).
"Auditor" means the auditor / controller of the County.
"Authoritv" means the Temecula Public Financing Authority and any successor thereto.
"Authoritv Attornev" means any attorney or firm of attorneys employed by the
Authority or the City in the capacity of general cowlsel to the Authority.
"Authorized Officer" means the Olairperson, Executive Director, Treasurer, Secretary
or any other officer or employee authorized by the Board of Directors of the Authority or by an
Authorized Officer to undertake the action referenced in this Agreement as required to be
tmdertaken by an Authorized Officer.
"Bond Counsel" means (i) Quint & Thimmig LLP, or (ii) any other attorney or firm of
attorneys acceptable to the Authority and nationally recognized for expertise in rendering
opinions as to the legality and tax-exempt status of securities issued by public entities.
"Bond Ftmd" means the fund by that name established by Section 4.05(A) hereof.
"Bond Insurance Policv" means the financial guaranty insurance policy with respect to
the Series 2006A Bonds issued by the Bond Insurer and insuring the payment when due of the
principal of and interest on the Series 2006A Bonds as provided therein.
"Bond Insurer" means
successor thereto or assignee thereof.
,a
1l1surance company, or any
"Bond Re2'ister" means the books for the registration and transfer of Bonds maintained
by the Fiscal Agent tmder Section 2.08 hereof.
-4-
"Bond Year" means the one-year period beginning on September 2nd in each year and
ending on September 1st in the following year, except that the first Bond Year shall begin on the
Closing Date and end on September 1,2007.
"Bonds" means the Series 2006 Bonds, and, if the context requires, any Parity Bonds, at
any time Outstanding under this Agreement or any Supplemental Agreement.
"Business Dav" means any day other than (i) a Saturday or a Sunday, or (ii) a day on
which banking institutions in the state in which the Fiscal Agent has its principal corporate
trust office are authorized or obligated by law or executive order to be closed.
"CDIAC" means the Califomia Debt and Investment Advisory Commission of the office
of the State Treasurer of the State of Califomia or any successor agency or bureau thereto.
"City" means the City of Temecula, Califomia.
"Closin2' Date" means September 1, 2006, being the date upon which there is a physical
delivery of the Series 2006 Bonds in exchange for the amount representing the purchase price of
the Series 2006 Bonds by the Original Purchaser.
"Code" means the Intemal Revenue Code of 1986 as in effect on the date of issuance of
the Bonds or (except as otherwise referenced herein) as it may be amended to apply to
obligations issued on the date of issuance of the Bonds, together with applicable proposed,
temporary and final regulations promulgated, and applicable official public guidance
published, under the Code.
"Continuin2' Disclosure A2'reement" shall mean that certain Continuing Disclosure
Agreement executed by the Authority and the Fiscal Agent on the Closing Date, as originally
executed and as it may be amended from time to time in accordance with the terms thereof.
"Costs of Issuance" means items of expense payable or reimbursable directly or
indirectly by tile AutllOrity or tile City and related to tile autllOrization, sale and issuance of tile
Bonds and the reftmding of the Prior Bonds, which items of expense shall include, but not be
limited to, printing costs, costs of reproducing and binding documents, closing costs, filing and
recording fees, initial fees and charges of the Fiscal Agent including its first annual
administration fee, expenses incurred by tile City or tile AutllOrity in connection Witll tile
issuance of the Bonds and the refunding of the Prior Bonds, special tax consultant fees and
expenses, legal fees and charges, including bond counsel and disclosure counsel, financial
consultants' fees, charges for execution, transportation and safekeeping of the Bonds, premiums
for tile Bond hlsurance Policy and tile Reserve Fund Policy, rating agency fees and otller costs,
charges and fees in connection with any of the foregoing.
"Costs of Issuance Flmd" means the fund by that name established by Section 4.03(A)
hereof.
"COlliltv" means tile County of Riverside, Califomia.
-5-
"DTC" means the Depository Trust Company, New York, New York, and its successors
and assigns.
"Debt Service" means the scheduled amOlmt of interest and amortization of principal
(including principal payable by reason of Section 2.03(A)(ii)) on the 2006 Bonds and the
scheduled amOlmt of interest and amortization of principal payable on any Parity Bonds during
the period of computation, excluding amounts scheduled during such period which relate to
principal which has been retired before the beginning of such period.
"Devositorv" means (a) initially, DTe, and (b) any other Securities Depository acting as
Depository pursuant to Section 2.13.
"District" means the Temecula Public Financing Authority Community Facilities
District No. 01-2 (Harveston), formed by the Authority lmder the Act and the Resolution of
Formation.
"Fair Market Value" means the price at which a willing buyer would purchase the
investment from a willing seller in a bona fide, arm's length transaction (determined as of the
date the contract to purchase or sell the investment becomes binding) if the investment is
traded on an established securities market (within the meaning of section 1273 of the Code)
and, otherwise, the term "Fair Market Value" means the acquisition price in a bona fide arm's
length transaction (as referenced above) if (i) the investment is a certificate of deposit that is
acquired in accordance with applicable regulations wlder the Code, (ii) the investment is an
agreement with specifically negotiated withdrawal or reinvestment provisions and a
specifically negotiated interest rate (for example, a guaranteed investment contract, a forward
supply contract or other investment agreement) that is acquired in accordance with applicable
regulations under the Code, (iii) the investment is a United States Treasury Security--State and
Local Government Series that is acquired in accordance with applicable regulations of the
United States Bureau of Public Debt, or (iv) the investment is the Local Agency hlVestment
Flmd of the State of California but only if at all times during which the investment is held its
yield is reasonably expected to be equal to or greater than the yield on a reasonably comparable
direct obligation of the United States.
"Federal Securities" means any of the following which are non-callable and which at the
time of investment are legal investments wlder the laws of the State of California for fWlds held
by the Fiscal Agent: (i) direct general obligations of the United States of America (including
obligations issued or held in book entry form on the books of the United States Department of
the Treasury and CATS and TGRS) , and (ii) obligations, the payment of principal of and
interest on which are fully guaranteed by the United States of America.
"Fiscal A2'ent" means the Fiscal Agent appointed by the Authority and acting as an
independent fiscal agent with the duties and powers herein provided, its successors and
assigns, and any other corporation or association which may at any time be substituted in its
place, as provided in Section 7.01.
"Fiscal Year" means the twelve-month period extending from July 1 in a calendar year
to JWle 30 of the succeeding year, both dates inclusive.
-h-
"ImDrovement Fund" means the fWld by that name created by and held by the Fiscal
Agent pursuant to Section 4.02(A) hereof.
"IndeDendent Financial Consultant" means any consultant or firm of such consultants
appointed by the Authority, the City or the Treasurer, and who, or each of whom: (i) has
experience in matters relating to the issuance and/ or administration of bonds tmder the Act; (ii)
is in fact independent and not wlder the domination of the Authority; (iii) does not have any
substantial interest, direct or indirect, with or in the Authority, or any owner of real property in
the District, or any real property in the District; and (iv) is not connected with the City or the
Authority as an officer or employee of the City or the Authority, but who may be regularly
retained to make reports to the City or the Authority.
"Information Services" means Financial hlformation, hlC:S "Daily Called Bond Service",
30 Montgomery Street, 10th Floor, Jersey City, New Jersey 07302, Attention: Editor; Kenny
hlformation Services' "Called Bond Service", 65 Broadway, 16th Floor, New York, New York
10006; Moody's Investors Service "Municipal and Government", 99 Church Street, New York,
New York 10007, Attention: Municipal News Reports; Standard & Poor's Corporation "Called
Bond Record", 25 Broadway, 3rd Floor, New York, New York 10004; and, in accordance with
then current guidelines of the Securities and Exchange Commission, such other addresses
and/ or such services providing information with respect to called bonds as the Authority may
designate in an Officer's Certificate delivered to the Fiscal Agent.
"Interest Pavment Dates" means March 1 and September 1 of each year, commencing
March 1,2007.
"Maximum Annual Debt Service" means the largest Annual Debt Service for any Bond
Year after the calculation is made through the final maturity date of any Outstanding Bonds.
"Maximum Reserve FWld Amowlt" means an amowlt equal to the lesser of (i) 10% of
the then Outstanding principal amOlmt of the Bonds, (ii) Maximum Annual Debt Service on the
Outstanding Bonds, or (iii) 125% of average Annual Debt Service on the Outstanding Bonds.
"Moody's" means Moody's hlvestors Service, and any successor thereto.
"Officer's Certificate" means a written certificate of the Authority signed by an
Authorized Officer of the Authority.
"Ordinance" means any ordinance of the Authority levying the Special Taxes.
"Ori2'inal Purchaser" means Stone & Y Olmgberg LLC, the first purchaser of the Series
2006 Bonds from the Authority.
"Outstandin2'." when used as of any particular time with reference to Bonds, means
(subject to the provisions of Section 8.04) all Bonds except: (i) Bonds theretofore canceled by the
Fiscal Agent or surrendered to the Fiscal Agent for cancellation; (ii) Bonds paid or deemed to
have been paid within the meaning of Section 9.03; and (iii) Bonds in lieu of or in substitution
for which other Bonds shall have been authorized, executed, issued and delivered by the
Authority pursuant to this Agreement or any Supplemental Agreement.
-7-
"Owner" or "Bond owner" means any person who shall be the registered owner of any
Outstanding Bond.
"Paritv Bonds" means bonds of the Authority for the District, secured under this
Agreement on a parity with any then Outstanding Series 2006A Bonds (and any other Parity
Bonds previously issued in accordance with Section 2.14 hereof) issued in compliance with the
requirements of Section 2.14 hereof.
"Particivatin2' Underwriter" shall have the meaning ascribed thereto in the Continuing
Disclosure Agreement.
"Permitted hlVestments" means any of the following, but only to the extent that the
same are acquired at Fair Market Value:
(a) direct obligations of (including obligations issued or held in book entry form
on the books of) the Department of the Treasury of the United States of America, and
senior debt obligations of other government-sponsored agencies approved by the Bond
hlsurer;
(b) obligations of any of the following federal agencies which obligations
represent full faith and credit of the United States of America, including: (i) Export-
Import Bank; (ii) Rural Economic Commwlity Development Administration; (iii) U.s.
Maritime Administration; (iv) Small Business Administration; (v) U.S. Department of
Housing & Urban Development (PHA's); (vi) Federal Housing Administration; and (vii)
Federal Financing Bank;
(c) direct obligations of any of the following federal agencies which obligations
are not fully guaranteed by the full faith and credit of the United States of America: (i)
senior debt obligations issued by the Federal National Mortgage Association (FNMA) or
Federal Home Loan Mortgage Corporation (FHLMC); (ii) obligations of the Resolution
Flmding Corporation (REFCORP); (iii) senior debt obligations of the Federal Home
Loan Bank System; and (iv) senior debt obligations of other governmental sponsored
agencies approved by the Bond Insurer;
(d) U.s. dollar denominated deposit accOlmts, federal ftmds and banker's
acceptances with domestic commercial banks, including the Trustee and its affiliates,
which have a rating on their short term certificates of deposit on the date of purchase of
"P-l" by Moody's and "A-I" or "A-l+" by S&P and maturing no more than 360 days
after the date of purchase, provided that ratings on holding companies are not
considered as the rating of the bank;
(e) commercial paper which is rated at the time of purchase in the single highest
classification, "P-l" by Moody's and "A-l+" by S&P, and which matures not more than
270 days after the date of purchase;
-8-
(f) investments in a money market fWld rated" AAAm" or "AAAm-G" or better
by S&P, including any money market ftmd for which the Fiscal Agent or an affiliate
receives fees for investment advisory or other services to the fWld;
(g) pre-refwlded municipal obligations defined as follows: any bonds or other
obligations of any state of the United States of America or of any agency,
instrumentality or local govemmental wlit of any such state which are not callable at
the option of the obligor prior to maturity or as to which irrevocable instructions have
been given by the obligor to call on the date specified in the notice; and (i) which are
rated, based upon an irrevocable escrow accOlmt or fund (the "escrow"), in the highest
rating category of Moody's and S&P or any successors thereto; or (ii)(A) which are fully
secured as to principal and interest and redemption premium, if any, by an escrow
consisting only of cash or obligations described in paragraph (a) above, which escrow
may be applied only to the payment of such principal of and interest and redemption
premium, if any, on such bonds or other obligations on the maturity date or dates
thereof or the specified redemption date or dates pursuant to such irrevocable
instructions, as appropriate, and (B) which escrow is sufficient, as verified by a
nationally recognized independent certified public accountant, to pay principal of and
interest and redemption premium, if any, on the bonds or other obligations described in
this paragraph on the maturity date or dates thereof or on the redemption date or dates
specified in the irrevocable instructions referred to above, as appropriate;
(h) mWlicipal obligations rated" Aaa/ AAA" or general obligations of the States
with a rating of "A-2/ A" or higher by both Moody's and S&P;
(i) investment agreements approved in writing by the Bond Insurer, supported
by appropriate opinions of cowlsel, with notice to S&P;
G) the Local Agency hlVestment Fund of the State, created pursuant to Section
16429.1 of the Califomia Govemment Code, to the extent the Fiscal Agent is authorized
to register such investment in its name; and
(k) other forms of investments (including repurchase agreements) approved in
writing by the Bond Insurer.
"Princival Office" means the principal corporate trust office of the Fiscal Agent set forth
in Section 9.06, except for the purpose of maintenance of the registration books and
presentation of Bonds for payment, transfer or exchange, such term shall mean the office at
which the Fiscal Agent conducts its corporate agency business, or such other or additional
offices as may be designated by the Fiscal Agent.
"Prior Bonds" means the Temecula Public Financing Authority Community Facilities
District No. 01-2 (Harveston) Special Tax Bonds outstanding as of the Closing Date under the
Prior Indenture.
"Prior Indenture" means the Indenture of Trust, dated as of August 1, 2002, between the
Prior Trustee and the Authority, as amended by the First Supplemental hldenture of Trust,
dated as of June 1, 2004, between the Prior Trustee and the Authority, by the Second
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Supplemental hldenture of Trust, dated as of November 22, 2005, between the Prior Trustee
and the Authority, and by the Third Supplemental Indenture of Trust, dated as of May 24, 2006,
between the Prior Trustee and the Authority.
"Prior Trustee" means U.s. Bank National Association, successor to U.s. Bank, N.A., in
its capacity as the trustee under the Prior Indenture.
"Proiect" means the facilities eligible to be ftmded by the District more particularly
described in the Resolution of Formation.
"Rate and Method of Aooortionment of Soecial Taxes" means the rate and method of
-- -
apportionment of special taxes for the District, as approved pursuant to the Resolution of
Formation, and as it may be modified in accordance with the Act.
"Record Date" means the fifteenth day of the month next preceding the month of the
applicable Interest Payment Date, whether or not such day is a Business Day.
"Reftmdin2' Bonds" means bonds issued by the Authority for the District the net
proceeds of which are used to refund all or a portion of the then Outstanding Bonds; provided
that the debt service on the Reftmding Bonds in each Bond Year is not in excess of the debt
service on the Bonds being refunded in each corresponding Bond Year, and the final maturity
of the Refunding Bonds is not later than the final maturity of the Bonds being refunded.
"Reftmdin2' Fund" means the ftmd by that name established pursuant to Section
4.0R(A).
"Reserve Fund" means the fWld by that name established pursuant to Section 4.04(A)
hereof.
"Reserve Flmd Polin':" means the surety bond issued by the Bond Insurer in the initial
face amowlt of $ guaranteeing certain payments into the Senior Subaccowlt of the
Reserve Flmd with respect to the Series 2006A Bonds as provided therein and subject to the
limitations set forth therein.
"Resolution" means Resolution No. TPFA 06-
the Authority on July 11, 2006.
, adopted by the Board of Directors of
"Resolution of Formation" means Resolution No. TPFA 02-03, adopted by the Board of
Directors of the Authority on August 13, 2002.
"Resolution of hltention" means Resolution No. TPFA 01-07, adopted by the Board of
Directors of the Authority on December 11, 2001.
"S&P" means Standard & Poor's Ratings Service, a division of McGraw-Hill, and any
successor thereto.
"Securities Deoositories" means The Depository Trust Company, 55 Water Street, 50~
Floor, New York, New York 10041-0099, Attention: Call Notification Department, Fax (212) 855-
-111-
7232; and, in accordance with then current guidelines of the Securities and Exchange
Commission, such other addresses and/or such other securities depositories as the Authority
may designate in an Officer's Certificate delivered to the Fiscal Agent.
"Senior Subaccowlt" means the subaccowlt by that name within the Reserve FWld,
established tmder Section 4.04(A).
"Senior SubaccOlmt Reserve Reouirement" means, as of any date of calculation, an
amowlt not to exceed the lesser of (i) maximum annual debt service on the Outstanding Bonds
(other than the Series 2006B Bonds), (ii) one htmdred twenty-five percent (125%) of average
annual debt service on the Outstanding Bonds (other than the Series 2006B Bonds), or (iii) ten
percent (10%) of the then principal amount of the Outstanding Bonds (other than the Series
2006B Bonds). As of the Closing Date, the Senior Subaccount Reserve Requirement was
$
"Series 2006 Bonds" means, collectively, the Series 2006A Bonds and the Series 2006B
Bonds.
"Series 2006A Bonds" means the Temecula Public Financing Authority Community
Facilities District No. 01-2 (Harveston) 2006 Special Tax Reftmding Bonds, Series A, authorized
by and at any time Outstanding pursuant to the Act and this Agreement.
"Series 2006B Bonds" means the Temecula Public Financing Authority Commwlity
Facilities District No. 01-2 (Harveston) 2006 Special Tax Reftmding Bonds, Subordinate Series B,
authorized by and at any time Outstanding pursuant to the Act and this Agreement.
"Soecial Tax Fund" means the fWld by that name established by Section 4.06(A) hereof.
"Soecial Tax Preoavments" means the proceeds of any Special Tax prepayments
received by the Authority, as calculated pursuant to the Rate and Method of Apportionment of
Special Taxes, less any administrative fees or penalties collected as part of any such
prepayment.
"Soecial Tax Preoavments AccOlmt" means the account by that name established within
the Bond FWld by Section 4.05(A) hereof.
"Soecial Tax Revenues" means the proceeds of the Special Taxes received by the
Authority, including any scheduled payments and any prepayments thereof, interest thereon
and proceeds of the redemption or sale of property sold as a result of foreclosure of the lien of
the Special Taxes to the amount of said lien and interest thereon. "Special Tax Revenues" does
not include any penalties collected in connection with delinquent Special Taxes.
"Soecial Taxes" means the special taxes levied within the District pursuant to the Act,
the Ordinance and this Agreement.
"Subordinate SubaccOlmt" means the subaccount by that name within the Reserve
FWld, established under Section 4.04(A).
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"Subordinate Subaccowlt Reserve Reauirement" means an amount equal to the then
Maximum Reserve Fund AmOlmt, less the amount of the then Senior SubaccOlmt Reserve
Requirement. As of the Closing Date, the Subordinate Subaccowlt Reserve Requirement was
$
"Suvvlemental A2'reement" means an agreement the execution of which is authorized
by a resolution which has been duly adopted by the Authority wlder the Act and which
agreement is amendatory of or supplemental to this Agreement, but only if and to the extent
that such agreement is specifically authorized herewlder.
"Tax Consultant" means Psomas, or another independent financial or tax consultant
retained by the Authority or the City for the purpose of computing the Special Taxes.
"Treasurer" means the Treasurer of the Authority or such other officer or employee of
the Authority performing the functions of the chief financial officer of the Authority.
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ARTICLE II
THE SERIES 2006 BONDS
Section 2.01. PrinciDal Amount: Desienation. The Series 2006A Bonds in the aggregate
principal amOlmt of Million Dollars ($ ) are authorized to be issued by
the Authority for the District wlder and subject to the terms of the Resolution and this
Agreement, the Act and other applicable laws of the State of California. The Series 2006A
Bonds shall be designated as the "Temecula Public Financing Authority Commwlity Facilities
District No. 01-2 (Harveston) 2006 Special Tax Reftmding Bonds, Series A."
The Series 2006B Bonds in the aggregate principal amOlmt of Million Dollars
($ ) are authorized to be issued by the Authority for the District wlder and subject to
the terms of the Resolution and this Agreement, the Act and other applicable laws of the State
of California. The Series 2006B Bonds shall be designated as the "Temecula Public Financing
Authority Community Facilities District No. 01-2 (Harveston) 2006 Special Tax Reftmding
Bonds, Subordinate Series B."
Section 2.02. Terms of the Series 2006 Bonds.
(A) Form: Denominations. The Series 2006 Bonds shall be issued as fully registered
Bonds without coupons in the denomination of $5,000 or any integral multiple in excess
thereof. The Series 2006 Bonds shall be lettered and numbered in a customary manner as
determined by the Fiscal Agent.
(B) Date of Series 2006 Bonds. The Series 2006 Bonds shall be dated the Closing Date.
(C) CUSIP Identification Numbers. "CUSIP" identification numbers shall be imprinted
on the Series 2006 Bonds, but such numbers shall not constitute a part of the contract evidenced
by the Series 2006 Bonds and any error or omission with respect thereto shall not constitute
cause for refusal of any purchaser to accept delivery of and pay for the Series 2006 Bonds. In
addition, failure on the part of the Authority or the Fiscal Agent to use such CUSIP numbers in
any notice to Owners shall not constitute an event of default or any violation of the Authority's
contract with such Owners and shall not impair the effectiveness of any such notice.
(D) Maturities, Interest Rates. The Series 2006A Bonds shall mature and become
payable on September 1 in each of the years, and shall bear interest at the rates per annum as
follows:
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Maturity Date
ISevtember 1 )
Princival AmOlmt
Interest Rate
The Series 2006B Bonds shall mature and become payable on September 1 in each of the
years, and shall bear interest at the rates per annum as follows:
Maturity Date
ISevtember 1 )
Princival Amowlt
hlterest Rate
(E) Interest. The Series 2006 Bonds shall bear interest at the respective rates set forth
above payable on the Interest Payment Dates in each year. Interest shall be calculated on the
basis of a 360-day year composed of twelve 30-day months. Each Series 2006 Bond shall bear
interest from the Interest Payment Date next preceding the date of authentication thereof tmless
(i) it is authenticated on an Interest Payment Date, in which event it shall bear interest from
such date of authentication, or (ii) it is authenticated prior to an Interest Payment Date and after
the close of business on the Record Date preceding SUcll hlterest Payment Date, in which event
it shall bear interest from such Interest Payment Date, or (iii) it is authenticated prior to the
Record Date preceding the first hlterest Payment Date, in which event it shall bear interest from
the Closing Date; provided, however, that if at the time of authentication of a Series 2006 Bond,
interest is in default thereon, SUcll Series 2006 Bond shall bear interest from the hlterest
Payment Date to which interest has previously been paid or made available for payment
thereon.
(F) Method of Pavment. hlterest on the Series 2006 Bonds (including the final interest
payment upon maturity or earlier redemption) is payable by check of the Fiscal Agent mailed
on the hlterest Payment Dates by first class mail to the registered Owner thereof at such
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registered Owner's address as it appears on the registration books maintained by the Fiscal
Agent at the close of business on the Record Date preceding the Interest Payment Date, or by
wire transfer (i) to the Depository (so long as the Series 2006 Bonds are in book-entry form
pursuant to Section 2.13), or (ii) to an account within the United States made on such Interest
Payment Date upon written instructions of any Owner of $1,000,000 or more in aggregate
principal amount of Bonds received before the applicable Record Date, which instructions shall
continue in effect wltil revoked in writing, or until such Series 2006 Bonds are transferred to a
new Owner. The principal of the Series 2006 Bonds and any premium on the Series 2006 Bonds
are payable by check in lawful money of the United States of America upon surrender of the
Series 2006 Bonds at the Principal Office of the Fiscal Agent. All Series 2006 Bonds paid by the
Fiscal Agent pursuant to this Section shall be canceled by the Fiscal Agent. The Fiscal Agent
shall destroy the canceled Series 2006 Bonds and issue a certificate of destruction thereof to the
Authority upon the Authority's request.
Section 2.03. Redemotion of the Series 2006 Bonds.
(A) Redemotion Dates.
(i) Optional Redemption of Series 2006A Bonds. The Series 2006A Bonds maturing
on and after September 1, __ are subject to optional redemption prior to their stated
maturity on any Interest Payment Date occurring on or after September 1, , as a
whole, or in part among maturities of the Series 2006A Bonds so as to maintain
substantially level debt service on the Bonds and by lot within a maturity, at a
redemption price (expressed as a percentage of the principal amount of the Series 2006A
Bonds to be redeemed), as set forth below, together with accrued interest thereon to the
date fixed for redemption:
Redemotion Dates
September 1, __ and March 1,__
September 1, and March 1,
September 1, __ and any Interest Payment
Date thereafter
Redemotion Prices
1020/u
101
100
(ii) Optional Redemption of Series 2006B Bonds. The Series 2006B Bonds are subject
to optional redemption prior to their stated maturity on any Interest Payment Date as a
whole, or in part among maturities of the Series 2006B Bonds so as to maintain
substantially level debt service on the Bonds and by lot within a maturity, at a
redemption price (expressed as a percentage of the principal amount of the Series 2006B
Bonds to be redeemed), as set forth below, together with accrued interest thereon to the
date fixed for redemption:
Redemntion Dates
any Interest Payment Date from and including
March 1,2007 to and including March 1,
September 1, __ and March 1,__
September 1, and March 1,
September 1, __ and any Interest Payment
Date thereafter
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Rf'df'mntlon Pricf's
103%
102
101
100
(iii) Mandatory Sinking Payment Redemption of Series 2006A Bonds. The Series
2006A Bonds maturing on September 1, , are subject to mandatory sinking payment
redemption in part on September 1, __, and on each September 1 thereafter to
maturity, by lot, at a redemption price equal to the principal amowlt thereof to be
redeemed, together with accrued interest to the date fixed for redemption, without
premium, from sinking payments as follows:
Redemption Date
(Sevtember 1 )
Sinkin2' Pavments
The Series 2006A Bonds maturing on September 1, , are subject to
mandatory sinking payment redemption in part on September 1, __, and on each
September 1 thereafter to maturity, by lot, at a redemption price equal to the principal
amOlmt thereof to be redeemed, together with accrued interest to the date fixed for
redemption, without premium, from sinking payments as follows:
Redemption Date
(Septem her 1)
SinkinQ PClVmf'nts
The amounts in the foregoing tables shall be reduced to the extent practicable so
as to maintain level debt service on the Bonds, as a result of any prior partial
redemption of the Series 2006A Bonds pursuant to Section 2.03(A)(i) above or Section
2.03(A)(v) below, as specified in writing by the Treasurer to the Fiscal Agent.
(iv) Mandatory Sinking Payment Redemption of Series 2006B Bonds. The Series
2006B Bonds maturing on September 1, __, are subject to mandatory sinking payment
redemption in part on September 1, , and on each September 1 thereafter to
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maturity, by lot, at a redemption price equal to the principal amowlt thereof to be
redeemed, together with accrued interest to the date fixed for redemption, without
premium, from sinking payments as follows:
Redemption Date
ISevtember 1 )
Sinkin2' Pavments
The Series 2006B Bonds maturing on September 1, ,are subject to mandatory
sinking payment redemption in part on September 1, __, and on each September 1
thereafter to maturity, by lot, at a redemption price equal to the principal amount
thereof to be redeemed, together with accrued interest to the date fixed for redemption,
without premium, from sinking payments as follows:
Redemption Date
ISeptem her 1)
SinkinQ PClVmf'nts
The amounts in the foregoing tables shall be reduced to the extent practicable so
as to maintain level debt service on the Bonds, as a result of any prior partial
redemption of the Series 2006B Bonds pursuant to Section 2.03(A)(ii) above or Section
2.03(A)(v) below, as specified in writing by the Treasurer to the Fiscal Agent.
(v) Redemption From Special Tax Prepayments. Special Tax Prepayments and
any corresponding transfers from the subaccOlmts within Reserve Fund pursuant to
Section 4.05(B)(ii) and Section 4.04(F), shall be used to redeem Series 2006 Bonds on the
next Interest Payment Date for which notice of redemption can timely be given tmder
Section 2.03(D), by lot within a maturity and allocated proportionately among the Series
2006A Bonds and the Series 2006B Bonds based upon the then outstanding principal of
each such series, and allocated among maturities within a series of the Series 2006 Bonds
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so as to maintain, as much as practicable, substantially level debt service on the Bonds,
in each case at a redemption price (expressed as a percentage at the principal amount of
the Series 2006 Bonds to be redeemed), as set forth below, together with accrued interest
to the date fixed for redemption:
Redemntion Dates
any Interest Payment Date from and including
March 1, 2007 to and including March 1,
September 1, __ and March 1,__
September 1, and March 1,
September 1, __ and any Interest Payment Date
thereafter
Redemntion Prices
103%
102
101
100
(B) Notice to Fiscal A\!ent. The Authority shall give the Fiscal Agent written notice of its
intention to redeem Series 2006 Bonds pursuant to subsection (A)(i), (A)(ii) or (A)(v) not less
than forty-five (45) days prior to the applicable redemption date, or such lesser number of days
as shall be consented to by the Fiscal Agent.
(C) Purchase of Ronds in Lieu of Redemntion. In lieu of redemption lmder Section
2.03(A), moneys in the Bond FWld may be used and withdrawn by the Fiscal Agent for
purchase of Outstanding Series 2006 Bonds, upon the filing with the Fiscal Agent of an Officer's
Certificate requesting such purchase, at public or private sale as and when, and at such prices
(including brokerage and other charges) as such Officer's Certificate may provide, but in no
event may Series 2006 Bonds be purchased at a price in excess of the principal amowlt thereof,
plus interest accrued to the date of purchase and any premium which would otherwise be due
if such Series 2006 Bonds were to be redeemed in accordance with this Agreement.
(D) J'edemntion Procedure hv Fiscal A\!ent. The Fiscal Agent shall cause notice of any
redemption to be mailed by first class mail, postage prepaid, at least thirty (30) days but not
more than sixty (60) days prior to the date fixed for redemption, to the Original Purchaser, to
the Securities Depositories, to one or more Information Services, and to the respective
registered Owners of any Series 2006 Bonds designated for redemption, at their addresses
appearing on the Bond registration books in the Principal Office of the Fiscal Agent; but such
mailing shall not be a condition precedent to such redemption and failure to mail or to receive
any such notice, or any defect therein, shall not affect the validity of the proceedings for the
redemption of such Series 2006 Bonds.
Such notice shall state the redemption date and the redemption price and, if less than all
of the then Outstanding Series 2006 Bonds are to be called for redemption, shall designate the
series, the maturities, the CUSIP numbers and Bond numbers of the Series 2006 Bonds to be
redeemed by giving the individual CUSIP number and Bond number of each Series 2006 Bond
to be redeemed or shall state that all Series 2006 Bonds of a series between two stated Bond
numbers, both inclusive, of such series are to be redeemed or that all of the Series 2006 Bonds of
one or more maturities of a series have been called for redemption, shall state as to any Series
2006 Bond called in part the principal amOlmt thereof to be redeemed, and shall require that
such Series 2006 Bonds be then surrendered at the Principal Office of the Fiscal Agent for
redemption at the said redemption price, and shall state that further interest on such Series 2006
Bonds will not accrue from and after the redemption date.
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Upon the payment of the redemption price of Series 2006 Bonds being redeemed, each
check or other transfer of funds issued for such purpose shall, to the extent practicable, bear the
CUSIP number identifying, by issue and maturity, of the Series 2006 Bonds being redeemed
with the proceeds of such check or other transfer.
Whenever provision is made in this Agreement for the redemption of less than all of the
Series 2006 Bonds or any given portion thereof, unless otherwise expressly set forth herein, the
Fiscal Agent shall select the Series 2006 Bonds to be redeemed, from all Series 2006 Bonds or
such given portion thereof not previously called for redemption, among the Series 2006A Bonds
and the Series 2006B Bonds proportionately based upon the then outstanding principal amowlt
of each series of the Series 2006 Bonds, and among maturities within a series as directed in
writing by the Treasurer (who shall specify Bonds to be redeemed so as to maintain, as much as
practicable, substantially level debt service on the Bonds), and by lot within a maturity in any
manner which the Fiscal Agent deems appropriate.
Upon surrender of Series 2006 Bonds redeemed in part only, the Authority shall execute
and the Fiscal Agent shall authenticate and deliver to the registered Owner, at the expense of
the Authority, a new Series 2006 Bond or Series 2006 Bonds, of the same series and maturity, of
authorized denominations in aggregate principal amOlmt equal to the tmredeemed portion of
the Series 2006 Bond or Series 2006 Bonds.
(E) Effect of RedemDtion. From and after the date fixed for redemption, if fWlds
available for the payment of the principal of, and interest and any premium on, the Series 2006
Bonds so called for redemption shall have been deposited in the Bond FWld, such Series 2006
Bonds so called shall cease to be entitled to any benefit tmder this Agreement other than the
right to receive payment of tile redemption price, and no interest shall accrue tllereon on or
after the redemption date specified in such notice.
All Series 2006 Bonds redeemed and purchased by the Fiscal Agent pursuant to this
Section, and any Series 2006 Bonds paid at maturity, shall be canceled by tile Fiscal Agent. The
Fiscal Agent shall destroy the canceled Series 2006 Bonds and issue a certificate of destruction
tllereof to tile AutllOrity.
Section 2.04. Form of tile Series 2006 Bonds. The Series 2006A Bonds, tile form of Fiscal
Agent's certificate of authentication and the form of assignment, to appear thereon, shall be
substantially in tile forms, respectively, set fortll in Exhibit A attached hereto and by tllis
reference incorporated herein, with necessary or appropriate variations, omissions and
insertions, as permitted or required by tllis Agreement, tile Resolution and tile Act. The Series
2006B Bonds, the form of Fiscal Agent's certificate of authentication and the form of
assignment, to appear tllereon, shall be substantially in tile forms, respectively, set fortll in
Exhibit B attached hereto and by this reference incorporated herein, with necessary or
appropriate variations, omissions and insertions, as permitted or required by tllis Agreement,
the Resolution and the Act.
Section 2.05. Execution of the Series 2006 Bonds. The Series 2006 Bonds shall be
executed on behalf of tile AutllOrity by tile manual or facsimile signatures of its Chairperson
and Secretary who are in office on the date of adoption of this Agreement or at any time
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thereafter, and the seal of the Authority shall be impressed, imprinted or reproduced by
facsimile signature thereon. If any officer whose signature appears on any Series 2006 Bond
ceases to be such officer before delivery of the Series 2006 Bonds to the owner, such signature
shall nevertheless be as effective as if the officer had remained in office tmtil the delivery of the
Series 2006 Bonds to the owner. Any Series 2006 Bond may be signed and attested on behalf of
the Authority by such persons as at the actual date of the execution of such Series 2006 Bond
shall be the proper officers of the Authority although at the nominal date of such Series 2006
Bond any such person shall not have been such officer of the Authority.
Only such Series 2006 Bonds as shall bear thereon a certificate of authentication in
substantially the form set forth in Exhibit A or Exhibit B, as applicable, executed and dated by
the Fiscal Agent, shall be valid or obligatory for any purpose or entitled to the benefits of this
Agreement, and such certificate of autllentication of tile Fiscal Agent shall be conclusive
evidence that the Series 2006 Bonds registered heretmder have been duly authenticated,
registered and delivered herewlder and are entitled to tile benefits of tllis Agreement.
Section 2.06. Transfer of Series 2006 Bonds. Any Series 2006 Bond may, in accordance
with its terms, be transferred, upon the books required to be kept pursuant to the provisions of
Section 2.0R by tile person in whose name it is registered, in person or by his duly autllOrized
attorney, upon surrender of such Series 2006 Bond for cancellation, accompanied by delivery of
a duly written instrument of transfer in a form acceptable to tile Fiscal Agent. The cost for any
services rendered or any expenses incurred by the Fiscal Agent in connection with any such
transfer shall be paid by tile AutllOrity. The Fiscal Agent shall collect from tile Owner
requesting such transfer any tax or other governmental charge required to be paid with respect
to such transfer.
Whenever any Series 2006 Bond or Series 2006 Bonds shall be surrendered for transfer,
the Authority shall execute and the Fiscal Agent shall authenticate and deliver a new Series
2006 Bond or Series 2006 Bonds, for like aggregate principal amowlt of tile same series and
maturity and of authorized denomination(s).
No transfers of Series 2006 Bonds shall be required to be made (i) fifteen days prior to
tile date established by tile Fiscal Agent for selection of Series 2006 Bonds for redemption, (ii)
with respect to a Series 2006 Bond after such Series 2006 Bond has been selected for redemption,
or (iii) between a Record Date and tile succeeding Interest Payment Date.
Section 2.07. Exchan2'e of Series 2006 Bonds. Series 2006 Bonds may be exchanged at tile
Principal Office of the Fiscal Agent for a like aggregate principal amOlmt of Series 2006 Bonds
of autllOrized denominations and of tile same series and maturity. The cost for any services
rendered or any expenses incurred by the Fiscal Agent in connection with any such exchange
shall be paid by tile AutllOrity. The Fiscal Agent shall collect from tile Owner requesting such
exchange any tax or other governmental charge required to be paid with respect to such
exchange.
No exchanges of Series 2006 Bonds shall be required to be made (i) fifteen days prior to
the date established by the Fiscal Agent for selection of Series 2006 Bonds for redemption, (ii)
Witll respect to a Series 2006 Bond after such Bond has been selected for redemption, or (iii)
between a Record Date and the succeeding Interest Payment Date.
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Section 2.08. Bond Re2'ister. The Fiscal Agent will keep or cause to be kept, at its
Principal Office sufficient books for the registration and transfer of the Bonds, which books
shall show the series number, date, maturity, amOlmt, rate of interest and last known Owner of
each Bond and shall at all times be open to inspection by the Authority during regular business
hours upon reasonable notice; and, upon presentation for such purpose, the Fiscal Agent shall,
wlder such reasonable regulations as it may prescribe, register or transfer or cause to be
registered or transferred, on said books, the ownership of the Bonds as hereinbefore provided.
The Authority and the Fiscal Agent will treat the Owner of any Bond whose name
appears on the Bond register as the absolute Owner of such Bond for any and all purposes, and
the Authority and the Fiscal Agent shall not be affected by any notice to the contrary. The
Authority and the Fiscal Agent may rely on the address of the Bondowner as it appears in the
Bond register for any and all purposes.
Section 2.09. Temvorarv Bonds. The Bonds may be initially issued in temporary form
exchangeable for definitive Bonds when ready for delivery. The temporary Bonds may be
printed, lithographed or typewritten, shall be of such authorized denominations as may be
determined by the Authority, and may contain such reference to any of the provisions of this
Agreement as may be appropriate. Every temporary Bond shall be executed by the Authority
upon the same conditions and in substantially the same manner as the definitive Bonds. If the
Authority issues temporary Bonds it will execute and furnish definitive Bonds without delay
and thereupon the temporary Bonds shall be surrendered, for cancellation, in exchange for the
definitive Bonds at the Principal Office of the Fiscal Agent or at such other location as the Fiscal
Agent shall designate, and the Fiscal Agent shall authenticate and deliver in exchange for such
temporary Bonds an equal aggregate principal amount of definitive Bonds of authorized
denominations of the same series. Until so exchanged, the temporary Bonds shall be entitled to
the same benefits under to this Agreement as definitive Bonds authenticated and delivered
hereunder.
Section 2.10. Bonds Mutilated. Lost. Destroved or Stolen. If any Bond shall become
mutilated, the Authority, at the expense of the Owner of said Bond, shall execute, and the Fiscal
Agent shall autllenticate and deliver, a new Bond of like tenor and principal amount in
exchange and substitution for the Bond so mutilated, but only upon surrender to the Fiscal
Agent of tile Bond so mutilated. Every mutilated Bond so surrendered to tile Fiscal Agent shall
be canceled by it and destroyed by the Fiscal Agent who shall deliver a certificate of destruction
tllereof to tile AutllOrity.
If any Bond shall be lost, destroyed or stolen, evidence of such loss, destruction or tlleft
may be submitted to the Fiscal Agent and, if such evidence be satisfactory to it and indemnity
for tile AutllOrity and tile Fiscal Agent satisfactory to tile Fiscal Agent shall be given, tile
Authority, at the expense of the Owner, shall execute, and the Fiscal Agent shall authenticate
and deliver, a new Bond of like tenor and principal amount in lieu of and in substitution for tile
Bond so lost, destroyed or stolen. The Authority may require payment of a sum not exceeding
tile actual cost of preparing each new Bond delivered wlder tllis Section and of tile expenses
which may be incurred by the Authority and the Fiscal Agent for the preparation, execution,
autllentication and delivery. Any Bond delivered wlder tile provisions of tllis Section in lieu of
any Bond alleged to be lost, destroyed or stolen shall constitute an original additional
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contractual obligation on the part of the Authority whether or not the Bond so alleged to be
lost, destroyed or stolen is at any time enforceable by anyone, and shall be equally and
proportionately entitled to tile benefits of tllis Agreement Witll all otller Bonds issued pursuant
to this Agreement.
Section 2.11. Limited Obli2'ation. All obligations of the Authority tmder this Agreement
and tile Bonds shall be special obligations of tile AutllOrity, payable solely from tile Special Iax
Revenues and the ftmds pledged therefore hereunder. Neither the faith and credit nor the
taxing power of tile AutllOrity (except to tile limited extent set fortll herein) or tile State of
California or any political subdivision thereof is pledged to the payment of the Bonds. Ihe City
has no obligation whatsoever wlder tllis Agreement or otllerwise Witll respect to tile Bonds.
Section 2.12. No Acceleration. Ihe principal of tile Bonds shall not be subject to
acceleration heretmder. Nothing in this Section shall in any way prohibit the redemption of
Bonds under Section 2.03 hereof, or tile defeasance of tile Bonds and discharge of tllis
Agreement tmder Section 9.03 hereof.
Section 2.13. Book-Entrv Svstem. DIC shall act as the initial Depository for the Series
2006 Bonds. One Series 2006 Bond for each maturity of each series of tile Series 2006 Bonds
shall be initially executed, authenticated, and delivered as set forth herein with a separate fully
registered certificate (in print or typewritten form). Upon initial execution, autllentication, and
delivery, the ownership of the Series 2006 Bonds shall be registered in the Bond Register kept
by tile Fiscal Agent for tile Bonds in tile name of Cede & Co., as nominee of DIC or such
nominee as DIC shall appoint in writing.
Ihe representatives of the Authority and the Fiscal Agent are hereby authorized to take
any and all actions as may be necessary and not inconsistent Witll tllis Agreement to qualify tile
Series 2006 Bonds for the Depository's book-entry system, including the execution of the
Depository's required representation letter.
Witll respect to Bonds registered in tile Bond Register in tile name of Cede & Co., as
nominee of DIe, neither the Authority nor the Fiscal Agent shall have any responsibility or
obligation to any broker-dealer, bank, or otller financial institution for which DIC holds Bonds
as Depository from time to time (the "DIC Participants") or to any person for which a DIC
Participant acquires an interest in tile Bonds (tile "Beneficial Owners"). WitllOut limiting tile
immediately preceding sentence, neither the Authority nor the Fiscal Agent shall have any
responsibility or obligation Witll respect to (i) tile accuracy of tile records of DIe, Cede & Co.,
or any DIC Participant with respect to any ownership interest in the Bonds, (ii) the delivery to
any DIC Participant, any Beneficial Owner, or any otller person, otller tl1an DIe, of any notice
with respect to the Bonds, including any notice of redemption, (iii) the selection by the
Depository of tile beneficial interests in tile Bonds to be redeemed in tile event tile AutllOrity
elects to redeem the Bonds in part, (iv) the payment to any DIC Participant, any Beneficial
Owner, or any otller person, otller tl1an DIe, of any amowlt Witll respect to tile principal of or
interest on the Bonds, or (v) any consent given or other action taken by the Depository as
Owner of tile Bonds.
Except as set fortll above, tile Fiscal Agent may treat as and deem DIC to be tile
absolute Owner of each Bond for which DIC is acting as Depository for the purpose of
-22-
payment of the principal of and interest on such Bonds, for the purpose of giving notices of
redemption and other matters with respect to such Bonds, for the purpose of registering
transfers with respect to such Bonds, and for all purposes whatsoever. The Fiscal Agent shall
pay all principal of and interest on the Bonds only to or upon the order of the Owners as shown
on the Bond Register, and all such payments shall be valid and effective to fully satisfy and
discharge all obligations with respect to the principal of and interest on the Bonds to the extent
of the sums or sums so paid.
No person other than an Owner, as shown on the Bond Register, shall receive a physical
Bond. Upon delivery by DTC to the Fiscal Agent of written notice to the effect that DTC has
determined to substitute a new nominee in place of Cede & Co., and subject to the transfer
provisions in Section 2.06 hereof, references to "Cede & Co." in this Section 2.13 shall refer to
such new nominee of DTe.
DTC may determine to discontinue providing its services with respect to the Series 2006
Bonds at any time by giving written notice to the Fiscal Agent during any time that the Series
2006 Bonds are Outstanding, and discharging its responsibilities with respect thereto under
applicable law. The Authority may terminate the services of DTC with respect to the Series
2006 Bonds if it determines that DTC is wlable to discharge its responsibilities with respect to
the Series 2006 Bonds or that continuation of the system of book-entry transfers through DTC is
not in the best interest of the Beneficial Owners, and the Authority shall mail notice of such
termination to the Fiscal Agent.
Upon the termination of the services of DTC as provided in the previous paragraph, and
if no substitute Depository willing to wldertake the fWlctions herewlder can be fowld which is
willing and able to tmdertake such functions upon reasonable or customary terms, or if the
Authority determines that it is in the best interest of the Beneficial Owners of the Series 2006
Bonds that they be able to obtain certificated Bonds, the Series 2006 Bonds shall no longer be
restricted to being registered in the Bond Register of the Fiscal Agent in the name of Cede &
Co., as nominee of DTe. but may be registered in whatever name or names the Owners shall
designate at that time, in accordance with Section 2.06.
To the extent that the Beneficial Owners are designated as the transferee by the Owners,
in accordance with Section 2.06, the Series 2006 Bonds will be delivered to such Beneficial
Owners as soon as practicable.
Section 2.14. Issuance of Paritv Bonds. The Authority may issue one or more series of
Bonds, in addition to the Series 2006 Bonds authorized under Section 2.01 hereof, by means of a
Supplemental Agreement and without the consent of any Bondowners, upon compliance with
the provisions of this Section 2.14. Any such Bonds that comply with the requirements of this
Section 2.14 shall be Parity Bonds, and such Parity Bonds shall constitute Bonds herewlder and
shall be secured by a lien on the Special Tax Revenues and funds pledged for the payment of
the Bonds herewlder on a parity with all Series 2006A Bonds and any previously issued Parity
Bonds Outstanding heretmder. The Authority may issue the Parity Bonds subject to the
following specific conditions precedent:
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(A) Current Comoliance. The Authority shall be in compliance on the date of
issuance of the Parity Bonds with all covenants set forth in this Agreement and all
Supplemental Agreements.
(B) Pavment Dates. The Supplemental Agreement providing for the issuance of
such Parity Bonds shall provide that interest thereon shall be payable on March 1 and
September 1, and principal thereof shall be payable on September 1 in any year in which
principal is payable (provided that there shall be no requirement that any Parity Bonds
pay interest on a current basis).
(C) FWlds and ACCOWltS: Reserve FWld Deoosit. The Supplemental Agreement
providing for the issuance of such Parity Bonds may provide for the establishment of
separate fWlds and accowlts, and shall provide for a deposit to the Senior Subaccowlt of
the Reserve Fund in an amOlmt necessary so that following the issuance of such Parity
Bonds, the amount on deposit therein, together with the amowlt available to be drawn
on the Reserve Flmd Policy, is equal to the Senior SubaccOlmt Reserve Requirement.
(D) Reftmdin2' Bonds. The Parity Bonds shall constitute "Refunding Bonds," as
such term is defined in Section 1.03.
(E) The Soecial Tax Covera2'e. The Authority shall obtain a certificate of a Tax
Consultant to the effect that the amOlmt of the maximum Special Taxes that may be
levied in each Fiscal Year on Developed Property (as such term is defined in the Rate
and Method of Apportionment of Special Taxes), less an amOlmt sufficient to pay
annual Administrative Expenses (as determined by the Treasurer), shall be at least one
hlmdred ten percent (110%) of the total Annual Debt Service for each such Fiscal Year
on (i) the Bonds (other than the Series 2006B Bonds) to remain outstanding following
the issuance of the Parity Bonds, and (ii) on the proposed Parity Bonds.
(F) Value-to-Lien Ratio. The District Value shall be at least twenty-five (25)
times the sum of: (i) the aggregate principal amowlt of all Bonds then Outstanding
(other than the Series 2006B Bonds), plus (ii) the aggregate principal amOlmt of the
series of Parity Bonds proposed to be issued, plus (iii) the a55<c5ate principal amowlt of
any fixed assessment liens on the parcels in the District subject to the levy of Special
Taxes, plus (iv) a portion of the aggregate principal amowlt of any and all other
community facilities district bonds then outstanding (other than the Series 2006B Bonds)
and payable at least partially from special taxes to be levied on parcels of land within
the District (the "Other District Bonds") equal to the aggregate principal amOlmt of the
Other District Bonds multiplied by a fraction, the numerator of which is the amowlt of
special taxes levied for the Other District Bonds on parcels of land within the District,
and the denominator of which is the total amount of special taxes levied for the Other
District Bonds on all parcels of land against which the special taxes are levied to pay the
Other District Bonds (such fraction to be determined based upon the maximum special
taxes which could be levied in the year in which maximum annual debt service on the
Other District Bonds occurs), based upon information from the most recent available
Fiscal Year.
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(G) Officer's Certificate. The Authority shall deliver to the Fiscal Agent an
Officer's Certificate certifying that the conditions precedent to the issuance of such
Parity Bonds set forth in subsections (A), (B), (C), (D), (E) and (F) of this Section 2.14
have been satisfied. In delivering such Officer's Certificate, the Authorized Officer that
executes the same may conclusively rely upon such certificates of the Fiscal Agent, the
Tax Consultant and others selected with due care, without the need for independent
inquiry or certification.
Nothing in this Section 2.14 shall prohibit the Authority from issuing bonds or
otherwise incurring debt secured by a pledge of Special Tax Revenues subordinate to the
pledge thereof for the benefit of the Series 2006B Bonds under Section 3.02 of this Agreement.
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ARTICLE III
ISSUANCE OF SERIES 2006 BONDS
Section 3.01. Issuance and Deliverv of Series 2006 Ronds. At any time after the
execution of this Agreement, the Authority may issue the Series 2006 Bonds for the District in
the respective aggregate principal amowlts set forth in Section 2.01 and deliver the Series 2006
Bonds to the Original Purchaser. The Authorized Officers of the Authority are hereby
authorized and directed to deliver any and all documents and instruments necessary to cause
the issuance of the Series 2006 Bonds in accordance with the provisions of the Act, the
Resolution and this Agreement, to authorize the payment of Costs of Issuance by the Fiscal
Agent from the proceeds of the Series 2006 Bonds and to do and cause to be done any and all
acts and things necessary or convenient for delivery of the Series 2006 Bonds to the Original
Purchaser.
Section 3.02. Pled",e of Snecial Tax Revenues and Amounts in Funds and Suhaccounts.
The Bonds shall be secured by a first pledge (which pledge shall be effected in the manner and
to the extent herein provided) of all of the Special Tax Revenues and all moneys deposited in
the Bond FWld (including the Special Tax Prepayments Account therein) and, wltil disbursed
as provided herein, in the Special Tax Fund, subject in any event to the priority for the
disposition of amowlts in the Bond Fund in Section 4.05 for the payment of debt service due on
the Series 2006A Bonds and to replenish the Senior Subaccount of the Reserve Flmd to the
amowlt of the Senior Subaccowlt Reserve Requirement prior to the use of amowlts therein for
the payment of debt service due on the Series 2006B Bonds and to make deposits to the
Subordinate Subaccount of the Reserve FWld. The Bonds, other than the Series 2006B Bonds, are
further secured by a first pledge of all of the moneys deposited in the Senior Subaccount of the
Reserve FWld, and the Series 2006B Bonds are further secured by a first pledge of all of the
moneys deposited in the Subordinate SubaccOlmt of the Reserve Flmd. The Special Tax
Revenues and all moneys deposited into the Special Tax FWld, the Bond Fund and the Reserve
Flmd, including the Senior SubaccOlmt and the Subordinate Subaccount therein (except as
otherwise specifically provided in this Agreement), are hereby dedicated to the payment of the
principal of, and interest and any premium on, the Bonds as provided herein and in the Act
wltil all of the Bonds have been paid and retired or until moneys or Federal Securities have
been set aside irrevocably for that purpose in accordance with Section 9.03, subject in any event
to the priority for the disposition of amowlts in the Bond Fund in Section 4.05.
Amowlts in the Administrative Expense FWld, the Improvement FWld, the Refwlding
Flmd and the Costs of Issuance Fund are not pledged to the repayment of the Bonds. The
Project financed with the proceeds of the Prior Bonds and from amowlts in the Improvement
Flmd are not in any way pledged to pay the Debt Service on the Bonds. Any proceeds of
condemnation or destruction of any portion of the Project are not pledged to pay the Debt
Service on the Bonds and are free and clear of any lien or obligation imposed herelmder.
Section 3.03. Va liditv of Ronds. The validity of the authorization and issuance of the
Bonds shall not be dependent upon the completion of the Project, or upon the performance by
any person of such persons obligation(s) with respect to the Project.
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ARTICLE IV
FUNDS AND ACCOUNTS
Section 4.01. Annlication of Proceeds of Sale of Series 2006 Ronds and Other Monevs.
~ ~ -
(A) The proceeds of the purchase of the Series 2006A Bonds by the Original Purchaser (being
$ ) shall be paid to the Fiscal Agent, who shall forthwith set aside, pay over and
deposit such proceeds on the Closing Date as follows:
(i) deposit in the Costs of Issuance Flmd an amount equal to $
(ii) deposit in the Senior SubaccOlmt of the Reserve Flmd an amOlmt equal to
$ ; and
(iii) deposit in the Refunding FWld an amowlt equal to $
(B) The proceeds of the purchase of the Series 2006B Bonds by the Original Purchaser
(being $ ) shall be paid to the Fiscal Agent, who shall forthwith set aside, pay over
and deposit such proceeds on the Closing Date as follows:
(i) deposit in the Costs of Issuance FWld an amount equal to $
(ii) deposit in the Subordinate Subaccowlt of the Reserve FWld an amowlt equal
to $ ; and
(iii) deposit in the Refunding Flmd an amOlmt equal to $
(C) In addition to the foregoing, on the Closing Date the Treasurer shall transfer or
cause to be transferred certain moneys held wlder the Prior Indenture as follows:
(i) transfer from the improvement fund held under the Prior hldenture to the
Fiscal Agent for deposit by the Fiscal Agent in the Improvement Flmd, all amOlmts on
deposit in said improvement fWld;
(ii) transfer from the annual levy accowlt of the special tax fWld held under the
Prior Indenture to the Fiscal Agent for deposit by the Fiscal Agent in the Special Tax
FWld, any amowlt on deposit therein not needed to pay the redemption price of the
Prior Bonds; and
(iii) transfer from the administrative expense fund held under the Prior
hldenture to the Treasurer for deposit by the Treasurer in the Administrative Expense
Flmd, an amount equal to $20,000.00.
Section 4.02. Tmnrovement FlInd
(A) Fstahlishment of Tmnrovement FlInd. There is hereby established as a separate
fund to be held by the Fiscal Agent, the Temecula Public Financing Authority Commwlity
~27~
Facilities District No. 01-2 (Harveston) Improvement Fund. A deposit shall be made to the
Improvement Fund as required by Section 4.01(C)(i). Moneys in the Improvement Fund shall
be held in trust by the Fiscal Agent for the benefit of the Authority, and shall be disbursed for
the payment or reimbursement of costs of the Project.
(B) Procedure for Disbursement. Disbursements from the Improvement Fund shall be
made by the Fiscal Agent upon receipt of an Officer's Certificate which shall: (a) set forth the
amOlmt required to be disbursed, the purpose for which the disbursement is to be made (which
shall be for payment of a cost of the Project as required wlder the Acquisition Agreement or
otherwise, or to reimburse expenditures of the Authority, the City or any other party for any of
such Project costs previously paid), that the disbursement is a proper expenditure from the
Improvement Fund, and the person to which the disbursement is to be paid; and (b) certify that
no portion of the amowlt then being requested to be disbursed was set forth in any Officer's
Certificate previously filed requesting a disbursement.
Each such Officer's Certificate or other certificate submitted to the Fiscal Agent as
described in this Section 4.02(B) shall be sufficient evidence to the Fiscal Agent of the facts
stated therein, and the Fiscal Agent shall have no duty to confirm the accuracy of such facts.
(C) Investment. Moneys in the Improvement Flmd shall be invested and deposited in
accordance with Section 6.01. hlterest eamings and profits from the investment and deposit of
amOlmts in the Improvement Fund shall be retained in the Improvement Fund to be used for
the purposes thereof.
(D) Closin2' of Imorovement FWld. Upon receipt by the Fiscal Agent of an Officer's
Certificate stating that the Project has been completed and that all costs of the Project have been
paid, or that any such costs are no longer required to be paid from the Improvement FWld, the
Fiscal Agent shall transfer the amount, if any, remaining in the Improvement Flmd to the Bond
FWld to be used to pay Debt Service on the Bonds (in accordance with the priority set forth in
Section 4.05(B)) on the next Interest Payment Date, and when no amOlmts remain on deposit in
the Improvement FWld the Improvement FWld shall be closed.
Section 4.03. Costs of Issuance FWld.
(A) Establishment of Costs of Issuance FWld. There is hereby established as a separate
fund to be held by the Fiscal Agent, the Temecula Public Financing Authority Commlmity
Facilities District No. 01-2 (Harveston) Costs of Issuance FWld, to the credit of which a deposit
shall be made as required by Section 4.01(A)(i) and 4.01(B)(i). Moneys in the Costs of Issuance
FWld shall be held in trust by the Fiscal Agent and shall be disbursed as provided in subsection
(B) of this Section for the payment or reimbursement of Costs of Issuance.
(B) Disbursement. AmOlmts in the Costs of Issuance Flmd shall be disbursed from time
to time to pay Costs of Issuance, as set forth in a requisition containing respective amowlts to
be paid to the designated payees, signed by the Treasurer and delivered to the Fiscal Agent
concurrently witll tile delivery of tile Bonds, or otllerwise in an Officer's Certificate delivered to
the Fiscal Agent after the Closing Date. The Fiscal Agent shall pay all Costs of Issuance after
receipt of an invoice from any such payee which requests payment in an amount which is less
than or equal to the amOlmt set forth with respect to such payee pursuant to an Officer's
-28-
Certificate requesting payment of Costs of Issuance. The Fiscal Agent shall maintain the Costs
of Issuance Flmd for a period of 90 days from the date of delivery of the Bonds and then shall
transfer any moneys remaining therein, including any investment eamings thereon, to the
Treasurer for deposit by the Treasurer in the Administrative Expense Fund.
(C) Investment. Moneys in the Costs of Issuance Flmd shall be invested and deposited
in accordance with Section 6.01. Interest eamings and profits resulting from said investment
shall be retained by the Fiscal Agent in the Costs of Issuance Flmd to be used for the purposes
of such fWld.
Section 4.04. Reserve FWld.
(A) Establishment of Fund. There is hereby established as a separate fWld to be held by
the Fiscal Agent the Temecula Public Financing Authority Commlmity Facilities District No.
01-2 (Harveston) Reserve FWld, and within SUcll fWld two subaccowlts designated as the
Senior SubaccOlmt and the Subordinate Subaccount, to the credit of which subaccOlmts deposits
shall be made as required by Section 4.01(A)(ii) and Section 4.01(B)(ii), respectively, and to the
credit of which Senior SubaccOlmt the Fiscal Agent shall hold the Reserve Flmd Policy. The
amowlt available to be drawn wlder the Reserve FWld Policy as of the Closing Date
($ ), and, together with the amOlmt to be deposited to the Senior Subaccount
pursuant to Section 4.01(A)(ii), is equal to the Senior Subaccount Reserve Requirement as of the
Closing Date. The amOlmt to be deposited to the Subordinate SubaccOlmt pursuant to Section
4.01(B)(ii) is equal to the Subordinate Subaccowlt Reserve Requirement as of the Closing Date.
Deposits also shall be made to the Senior SubaccOlmt and the Subordinate SubaccOlmt as
provided in Section 4.06(B).
Moneys in the Senior Subaccount shall be held in trust by the Fiscal Agent for the
benefit of the Owners of the Bonds (other than the Series 2006B Bonds) as a reserve for the
payment of principal of, and interest and any premium on, the Bonds (other than the Series
2006B Bonds) and shall be subject to a lien in favor of the Owners of the Bonds (other than the
Series 2006B Bonds). The Reserve Fund Policy shall be held by the Fiscal Agent for the credit of
the Senior SubaccOlmt and the benefit of the Series 2006A Bonds, to be drawn upon as provided
in Section 4.04(1). Moneys in the Subordinate Subaccowlt shall be held in trust by the Fiscal
Agent for the benefit of the Owners of the Series 2006B Bonds as a reserve for payment of
principal of, and interest and any premium on, the Series 2006B Bonds and shall be subject to a
lien in favor of the Owners of the Series 2006B Bonds.
(B) Use of SubaccOlmts. Except as otherwise provided in this Section, all amOlmts
deposited in the Senior Subaccount shall be used and withdrawn by the Fiscal Agent solely for
the purpose of making transfers to the Bond Flmd in the event of any deficiency at any time in
the Bond FWld of the amowlt then required for payment of the principal of, and interest and
any premium on, the Bonds (other than the Series 2006B Bonds) or, in accordance with the
provisions of this Section, for the purpose of redeeming Bonds (other than the Series 2006B
Bonds) from the Bond Fund. Notwithstanding any other provision hereof, proceeds of draws
on the Reserve FWld Policy shall be used solely to pay debt service on the Series 2006A Bonds.
lil any case where the Senior Subaccowlt of the Reserve Fund is fWlded with a
combination of cash and the Reserve Flmd Policy, the Fiscal Agent shall (i) deplete all cash
-29-
balances and Permitted Investments in the Senior Subaccount of the Reserve FWld before
drawing on the Reserve Fund Policy, and (ii) once all cash balances and Permitted Investments
have been exhausted, the Fiscal Agent shall draw on the Reserve FWld Policy.
Except as otherwise provided in this Section, all amowlts deposited in the Subordinate
SubaccOlmt shall be used and withdrawn by the Fiscal Agent solely for the purpose of making
transfers to the Bond Fund in the event of any deficiency at any time, in the Bond Fund of the
amOlmt then required for payment of the principal of, and interest and any premium on, the
Series 2006B Bonds, or, in accordance with the provisions of this Section, for the purpose of
redeeming Series 2006B Bonds from the Bond Fund.
(C) Notice of Transfer Due to Deficiencv in Bond Fund. Whenever transfer is made
from either of the subaccounts of the Reserve FWld to the Bond FWld due to a deficiency in the
Bond Flmd, or if there is ever a draw on the Reserve Flmd Policy, the Fiscal Agent shall provide
written notice thereof to the Treasurer, specifying the amowlt withdrawn and the subaccount
from which the withdrawal was made, and/ or the amount drawn on the Reserve Flmd Policy,
as applicable.
(D) Transfer of Excess of Reserve Reauirement. Whenever, on the Business Day prior to
any Interest Payment Date, or on any other date at the request of the Treasurer, the amount in
the Senior Subaccowlt (taking into accowlt any amounts available to be drawn under the
Reserve Fund Policy for the purposes of the Senior SubaccOlmt of the Reserve Fund) or the
Subordinate Subaccowlt of the Reserve Fund exceeds the Senior Subaccowlt Reserve
Requirement or the Subordinate SubaccOlmt Reserve Requirement, respectively, the Fiscal
Agent shall provide written notice to the Treasurer of the amowlt of the excess and shall
transfer an amount equal to the excess from the applicable subaccOlmt of the Reserve Flmd: (i)
to the Bond Insurer, to the extent any amowlts are then owing by the Authority to the Bond
Insurer in respect of amounts drawn lmder the Reserve Flmd Policy (including, but not limited
to, repayment of any withdrawals wlder the Reserve FWld Policy whicll have not theretofore
been repaid), and then (ii) to the Bond Flmd to be used for the payment of interest on the Bonds
on the next lilterest Payment Date in accordance with the priorities set forth in Section 4.05(B).
(E) Transfer When Balance Exceeds Outstandin2' Bonds. Whenever (i) the balance in
the Senior Subaccount of the Reserve Fund (without regard to amounts available to be drawn
wlder the Reserve FWld Policy) exceeds the amowlt required to redeem or pay the Outstanding
Bonds (other than the Series 2006B Bonds), including interest accrued to the date of payment or
redemption and premium, if any, due upon redemption, and (ii) no amowlts are owing by the
Authority to the Bond Insurer in respect of draws under the Reserve Fund Policy (including,
but not limited to, repayment of any withdrawals wlder the Reserve FWld Policy which have
not theretofore been repaid), the Fiscal Agent shall transfer the amount in the Senior
Subaccowlt of the Reserve Fund to the Bond Fund to be applied, on the next succeeding Interest
Payment Date to the payment and redemption, in accordance with Section 2.03 or 4.05, as
applicable, of all of the Outstanding Bonds (other than the Series 2006B Bonds). lil the event
that the amOlmt so transferred from the Senior Subaccount of the Reserve Flmd to the Bond
FWld exceeds the amowlt required to pay and redeem the Outstanding Bonds (other than the
Series 2006B Bonds), the balance in the Senior SubaccOlmt of the Reserve Fund shall be
transferred to the Authority to be used for any lawful purpose of the Authority.
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Whenever the balance in the Subordinate Subaccowlt of the Reserve FWld exceeds the
amOlmt required to redeem or pay the Outstanding Series 2006B Bonds, including interest
accrued to the date of payment or redemption and premium, if any, due upon redemption, the
Fiscal Agent shall transfer the amount in the Subordinate SubaccOlmt of the Reserve Fund to
the Bond Fund to be applied, on the next succeeding Interest Payment Date to the payment and
redemption, in accordance with Section 2.03 or 4.05, as applicable, of all of the Outstanding
Series 2006B Bonds. lil the event that the amowlt so transferred from the Subordinate
SubaccOlmt of the Reserve Flmd to the Bond Flmd exceeds the amount required to pay and
redeem the Outstanding Series 2006B Bonds, the balance in the Subordinate Subaccowlt of the
Reserve Flmd shall be transferred to the Authority to be used for any lawful purpose of the
Authority.
Notwithstanding the foregoing, no amowlts shall be transferred from either of the
subaccOlmts of the Reserve Fund pursuant to this Section 4.04(E) lmtil after (i) the payment to
the Bond lilsurer of any amounts owed to it by the Authority in respect of draws wlder the
Reserve Flmd Policy, (ii) the calculation of any amounts due to the federal government
pursuant to Section 5.13 following payment of the applicable series of the Bonds and
withdrawal of any such amOlmt from the applicable subaccOlmt of the Reserve Fund for
purposes of making such payment to the federal government, and (iii) payment of any fees and
expenses due to the Fiscal Agent.
(F) Transfer UDon SDecial Tax PreDavment. Whenever Special Taxes are prepaid and
Bonds are to be redeemed with the proceeds of such prepayment pursuant to Section
2.03(A)(v), a proportionate amOlmt in the subaccounts of the Reserve Flmd (determined on the
basis of the principal of Bonds to be redeemed and the then outstanding principal of the Bonds,
the series of Bonds to be redeemed (i.e. Series 2006A Bonds and Parity Bonds, and Series 2006B
Bonds), and in any event without taking into accowlt any amowlts available to be withdrawn
lmder the Reserve Flmd Policy), shall be transferred on the Business Day prior to the
redemption date by the Fiscal Agent to the Bond Fund to be applied to the redemption of the
Bonds pursuant to Section 2.03(A)(v). Notwithstanding the foregoing, in no event shall any
transfer be made pursuant to this Section 4.04(F) which results in the (i) amount on deposit in
the Senior SubaccOlmt being an amount less than the amOlmt of the Senior SubaccOlmt Reserve
Requirement to be in effect following the redemption of such Bonds; or (ii) amowlt on deposit
in the Subordinate SubaccOlmt being an amount less than the amount of the Subordinate
Subaccowlt Reserve Requirement to be in effect following the redemption of such Bonds. Also,
in no event shall there be a draw on the Reserve Flmd Policy to make any transfer provided for
in this Section 4.04(F).
(G) Transfer to Pav Rebate. Amowlts in the subaccowlts of the Reserve FWld may at
any time be used, at the written direction of an Authorized Officer, for the purpose of paying
any rebate liability as may be determined in accordance with Section 5.13; provided that
amOlmts in the Subordinate SubaccOlmt shall be used for such purpose lmtil no amOlmts
remain in such subaccowlt, prior to using amowlts in the Senior Subaccowlt for such purpose.
Also, in no event shall there be a draw on the Reserve Flmd Policy to make any transfer
provided for in this Section 4.04(F).
(H) Investment. Moneys in the Senior Subaccowlt and in the Subordinate Subaccount
of the Reserve Fund shall be invested in accordance with Section 6.01, and earnings on amounts
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in a subaccowlt shall remain in the corresponding subaccount subject to transfer as provided in
the foregoing subsections of this Section 4.04.
(1) Pavments Under the Reserve Flmd Policv. As long as the Reserve Fund Policy shall
be in full force and effect, the Authority and the Fiscal Agent agree to comply with the
following provisions:
(i) In the event and to the extent that moneys on deposit in the Senior SubaccOlmt of
the Reserve Fund, plus all amowlts on deposit in and credited to the Bond FWld
in excess of the amOlmt of the Reserve Flmd Policy, are insufficient to pay the
amowlt of principal and interest coming due on the Series 2006A Bonds, then
upon the later of: (a) one (1) day after receipt by the General Counsel of the Bond
hlsurer of a demand for payment in the form attached to the Reserve FWld
Policy as Attachment 1 (the "Demand for Payment"), duly executed by the Fiscal
Agent certifying that payment due wlder this Agreement has not been made to
the Fiscal Agent; or (b) the payment date of the Series 2006A Bonds as specified
in the Demand for Payment presented by the Fiscal Agent to the General
Counsel of the Bond Insurer, the Bond Insurer will make a deposit of ftmds in an
account with the Fiscal Agent or its successor, in New York, New York, sufficient
for the payment to the Fiscal Agent, of amOlmts which are then due to the Fiscal
Agent wlder this Agreement (as specified in the Demand for Payment) up to but
not in excess of the Surety Bond Coverage, as defined in the Reserve Flmd
Policy; provided, however, that in the event that the amowlt on deposit in, or
credited to, the Senior SubaccOlmt of the Reserve Flmd, in addition to the
amowlt available wlder the Reserve FWld Policy, includes amowlts available
lmder a letter of credit, insurance policy, surety bond or other such ftmding
instrument (the "Additional FWlding hlstrument"), draws on the Reserve FWld
Policy and the Additional Flmding Instrument shall be made on a pro rata basis
to fWld the insufficiency.
(ii) The Fiscal Agent shall, after submitting to the Bond hlsurer the Demand for
Payment as provided in (i) above, make available to the Bond Insurer all records
relating to the fWlds and accounts maintained by it under this Agreement.
(iii) The Fiscal Agent shall, upon receipt of moneys received from the draw on the
Reserve Flmd Policy, as specified in the Demand for Payment, credit the Senior
Subaccowlt of the Reserve FWld to the extent of moneys received pursuant to
such Demand.
(iv) The Senior SubaccOlmt of the Reserve Flmd shall be replenished in the following
priority: (a) principal and interest due wlder the terms of the Reserve FWld
Policy shall be paid from first available Special Tax Revenues otherwise required
to be deposited to the Senior Subaccount of the Reserve FWld; (b) after all such
amOlmts are paid in full, amounts necessary to ftmd the Senior SubaccOlmt of the
Reserve Fund to the required level, after taking into account the amounts
available lmder the Reserve Flmd Policy shall be deposited from next available
Special Tax Revenues otherwise required to be deposited to the Senior
SubaccOlmt of the Reserve Flmd.
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Section 4.05. Bond Flmd.
(A) Establishment of Bond Fund and Svecial Tax Prevavments AccOlmt. There is
hereby established as a separate fWld to be held by the Fiscal Agent, the Temecula Public
Financing Authority Commlmity Facilities District No. 01-2 (Harveston) Bond Flmd, to the
credit of which deposits shall be made as required by Sections 4.02(D), 4.04(B), 4.04(D), 4.04(E),
4.04(F), and 4.06(B), and any other amounts required to be deposited therein by this Agreement
or the Act. There is also hereby created in the Bond FWld a separate accowlt to be held by the
Fiscal Agent, consisting of the Special Tax Prepayments Account, to the credit of which
deposits shall be made as provided in Section 4.06(A).
Moneys in the Bond Fund and the account therein shall be held in trust by the Fiscal
Agent for the benefit of the Owners of the Bonds, shall be disbursed for the payment of the
principal of, and interest and any premium on, the Bonds as provided below, and, pending
such disbursement, shall be subject to a lien in favor of the Owners of the Bonds (subject in any
event to the priorities for the disposition of amounts in the Bond Fund specified in Section
4.05(B)).
(B) Disbursements. (i) Bond Fund Disbursements. Three (3) Business Days
prior to each Interest Payment Date, the Fiscal Agent shall determine if the amounts
then on deposit in the Bond Fund are sufficient to pay the Debt Service due on the Series
2006A Bonds on the next hlterest Payment Date. hl the event that amowlts in the Bond
Flmd are insufficient for such purpose, the Fiscal Agent shall take action as required
wlder Section 4.04(1) and/ or Section 10.01, as applicable.
On each hlterest Payment Date, the Fiscal Agent shall withdraw from the Bond
Flmd and pay to the Owners of the Bonds the principal, and interest and any premium,
then due and payable on the Bonds, including any amowlts due on the Bonds by reason
of the sinking payments set forth in Section 2.03(A)(iii) or (iv), or a redemption of the
Bonds required by Section 2.03(A)(i), (ii) or (v), such payments to be made in the
priority listed in the succeeding paragraph. Notwithstanding the foregoing, amounts in
the Bond FWld as a result of a transfer pursuant to Section 4.02(D) shall be used to pay
the principal of and interest on the Bonds prior to the use of any other amOlmts in the
Bond FWld for such purpose.
On each Interest Payment Date amounts on deposit in the Bond FWld shall be
used to make the following payments in the order of priority listed, with each
requirement to be satisfied in full prior to any use of amowlts for the next succeeding
requirement: (i) payment of all interest due and owing (including any past due interest
not yet paid) on the Bonds, other than the Series 2006B Bonds, (ii) payment of all
principal due and owing (including any past due principal and any principal due by
reason of sinking payments referred to in Section 2.03(A)(iii)) on the Bonds, other than
the Series 2006B Bonds, (iii) payment of all interest due and owing (including any past
due interest not yet paid) on the Series 2006B Bonds, and (iv) payment of all principal
due and owing (including any past due principal and any principal due by reason of
sinking payments referred to in Section 2.03(A)(iv)) on the Series 2006B Bonds. If the
requirements of any of the preceding clauses (i) through (iv) can be met in part, but not
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in full, available amounts shall be applied pro rata to payment of the applicable Bonds
referenced in such clause.
In the event that amounts in the Bond Flmd are insufficient for the purposes set
forth in clauses (i) and (ii) of the preceding paragraph, the Fiscal Agent shall withdraw
from the Senior SubaccOlmt of the Reserve Flmd, in accordance with the provisions of
Section 4.04 hereof, to the extent of any fWlds or Permitted Investments therein, and
then draw on the Reserve Flmd Policy, to the extent amOlmts are available lmder the
Reserve FWld Policy, amowlts to cover the amowlt of such Bond FWld insufficiency, all
in the priority provided in Section 4.04(B). AmOlmts so withdrawn from the Senior
Subaccowlt of the Reserve Fund or drawn wlder the Reserve FWld Policy shall be
deposited in the Bond Fund; and, notwithstanding any other provision of this
Agreement, amounts drawn on the Reserve Fund Policy shall be used solely to make
payments on the Series 2006A Bonds.
In the event that amounts in the Bond Flmd are insufficient for the purpose set
forth in clauses (iii) and (iv) of the second preceding paragraph, the Fiscal Agent shall
withdraw from the Subordinate SubaccOlmt of the Reserve Fund to the extent of any
funds therein amowlts to cover the amount of such Bond FWld insufficiency. Amounts
so withdrawn from the Subordinate SubaccOlmt shall be deposited in the Bond Flmd
and used solely to make payments on the Series 2006B Bonds.
(ii) Special Tax Prepayments Account Disbursements. Moneys in the Special
Tax Prepayments Account shall be transferred by the Fiscal Agent to the Bond Fund on
the next date for which notice of redemption of Bonds can timely be given wlder Section
2.03(A)(v), and notice to the Fiscal Agent can timely be given lmder Section 2.03(B), and
shall be used (together with any amowlts transferred pursuant to Section 4.04(F)) to
redeem Bonds on the redemption date selected in accordance with Section 2.03.
(C) Investment. Moneys in the Bond Flmd and the Special Tax Prepayments AccOlmt
shall be invested and deposited in accordance with Section 6.01. hlterest eamings and profits
resulting from the investment and deposit of amOlmts in the Bond Flmd and the Special Tax
Prepayments ACCOWlt shall be retained in the Bond FWld and the Special Tax Prepayments
AccOlmt, respectively, to be used for purposes of such ftmd and account.
Section 4.06. Svecial Tax Fund.
(A) Establishment of Svecial Tax Flmd. There is hereby established as a separate ftmd
to be held by the Fiscal Agent, the Temecula Public Financing Authority Community Facilities
District No. 01-2 (Harveston) Special Tax Fund, to the credit of which the Fiscal Agent shall
deposit amowlts received from or on behalf of the Authority consisting of Special Tax
Revenues, and any amOlmts required by Sections 4.01 (C)(ii) and 4.07(B) to be deposited therein.
The Authority shall promptly remit any such amowlts received by it to tile Fiscal Agent for
deposit by the Fiscal Agent to the Special Tax Flmd.
Notwithstanding the foregoing, (i) any Special Tax Revenues constituting payment of
tile portion of tile Special Tax levy for Administrative Expenses shall be deposited by tile
Treasurer in the Administrative Expense Flmd, and (ii) any proceeds of Special Tax
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Prepayments shall be transferred by the Treasurer to the Fiscal Agent for deposit by the Fiscal
Agent (as specified in writing by the Treasurer to the Fiscal Agent) directly in the Special Tax
Prepayments Account established pursuant to Section 4.05(A).
Moneys in tile Special Tax FWld shall be held in trust by tile Fiscal Agent for tile benefit
of the Authority and the Owners of the Bonds, shall be disbursed as provided below and,
pending disbursement, shall be subject to a lien in favor of tile Owners of tile Bonds and tile
Authority.
(B) Disbursements. From time to time as needed to pay the obligations of the District,
but no later tlllil tl1fee (3) Business Days prior to each Interest Payment Date, tile Fiscal Agent
shall withdraw from the Special Tax Flmd and transfer the following amounts in the following
order of priority (i) to tile Bond FWld an amowlt, taking into account lilY amowlts tllen on
deposit in the Bond Fund and any expected transfers from the Improvement Fund, the Senior
Subaccowlt of tile Reserve FWld lild tile Special Tax Prepayments ACCOWlt to tile Bond FWld
pursuant to Sections 4.02(D), 4.04(D), (E), and (F), and 4.05(B)(ii), such that the amount in the
Bond Fund equals tile principal (including lilY sinking payment), premium, if lilY, lild interest
due on the Bonds (other than the Series 2006B Bonds) on such Interest Payment Date, (ii) to the
Bond hlsurer, any amounts owed by tile AutllOrity to tile Bond hlsurer in respect of amowlts
drawn on the Reserve Flmd Policy (including, but not limited to, repayment of any
witlldrawals wlder tile Reserve FWld Policy which have not tlleretofore been repaid); and (iii)
to the Senior Subaccount of the Reserve Flmd an amount, taking into accOlmt amOlmts then on
deposit in tile Senior Subaccount lild amounts available to be drawn wlder tile Reserve FWld
Policy for purposes of the Senior SubaccOlmt of the Reserve Fund (after any amounts paid to
tile Bond hlsurer wlder tile preceding clause (ii)), such tllat tile amowlt in tile Senior
SubaccOlmt is equal to the Senior Subaccount Reserve Requirement, (iv) to the Bond Flmd an
amowlt, taking into accowlt lilY expected trlilsfers referred to in clause (i) and from tile
Subordinate SubaccOlmt of the Reserve Fund, as well as the requirements of the preceding
clauses (i), (ii) lild (iii), such tllat tile amowlt in tile Bond FWld equals tile principal (including
any sinking payment), premium, if any, and interest due on the Bonds (including the Series
2006B Bonds) on tile next Interest Payment Date, lild (v) to tile Subordinate Subaccowlt of tile
Reserve Flmd an amOlmt, taking into account amOlmts then on deposit in the Subordinate
Subaccowlt, such tllat tile amowlt in tile Subordinate Subaccowlt is equal to tile Subordinate
SubaccOlmt Reserve Requirement.
(C) Investment. Moneys in the Special Tax Flmd shall be invested and deposited in
accordlilce Witll Section 6.01. hlterest eamings lild profits resulting from such investment lild
deposit shall be retained in the Special Tax Fund to be used for the purposes thereof.
Section 4.07. Administrative Expense Flmd.
(A) Establishment of Administrative Expense Fund. There is hereby established as a
separate fund to be held by tile Treasurer, tile Temecula Public Finlilcing AutllOrity
Community Facilities District No. 01-2 (Harveston) Administrative Expense Flmd, to the credit
of which deposits shall be made as required by Sections 4.01(C)(iii), 4.03(B) and 4.06(B).
Moneys in the Administrative Expense Flmd shall be held in trust by the Treasurer for the
benefit of tile AutllOrity, lild shall be disbursed as provided below.
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(B) Disbursement. Amowlts in the Administrative Expense FWld shall be withdrawn
by the Treasurer and paid to the Authority or its order upon receipt by the Treasurer of an
Officer's Certificate stating the amowlt to be withdrawn, that such amowlt is to be used to pay
an Administrative Expense or a Costs of Issuance, and the nature of such Administrative
Expense or Costs of Issuance. Amowlts transferred from the Costs of Issuance FWld to the
Administrative Expense Fund pursuant to Sections 4.01 (D), 4.02(D) or 4.03(B) shall be
separately identified at all times, and shall be expended for purposes of the Administrative
Expense Flmd prior to the use of amOlmts transferred to the Administrative Expense Flmd from
the Special Tax Fund pursuant to Section 4.06(B).
Annually, on the last day of each Fiscal Year commencing with the last day of Fiscal
Year 2006-2007, the Treasurer shall withdraw any amounts then remaining in the
Administrative Expense FWld in excess of $40,000 that have not otherwise been allocated to pay
Administrative Expenses incurred but not yet paid, and which are not otherwise encumbered,
and transfer such amounts to the Fiscal Agent for deposit by the Fiscal Agent in the Special Tax
Flmd.
(C) Investment. Moneys in the Administrative Expense Flmd shall be invested and
deposited in accordance with Section 6.01. hlterest eamings and profits resulting from said
investment shall be retained by the Treasurer in the Administrative Expense Flmd to be used
for the purposes thereof.
Section 4.0R. Refwldin2' Fund.
(A) Establishment of Refwldin2' FWld. There is hereby established as a separate fWld to
be held by the Fiscal Agent, the Temecula Public Financing Authority Community Facilities
District No. 01-2 (Harveston), Refunding FWld, to the credit of which deposits shall be made as
required by Section 4.01(A)(iii) and 4.01 (B)(iii). Moneys in the Reftmding Fund shall be held in
trust by the Fiscal Agent for the benefit of the Authority, and shall be disbursed, as provided in
subsection (B) of this Section.
(B) Procedure for Disbursement. On the Closing Date, all amOlmts on deposit in the
Refunding Fund shall be transferred by the Fiscal Agent to the Prior Trustee, to be used to pay
in full and discharge the Prior Bonds. After disbursement of all amounts on deposit in the
Refunding FWld, the Refwlding FWld shall be closed.
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ARTICLE V
OTHER COVENANTS OF THE AUTHORITY
Section 5.01. PWlctual Pavment. The Authority will punctually payor cause to be paid
the principal of, and interest and any premium on, the Bonds when and as due in strict
conformity with the terms of this Agreement and any Supplemental Agreement, and it will
faithfully observe and perform all of the conditions, covenants and requirements of this
Agreement and all Supplemental Agreements and of the Bonds.
Section 5.02. Limited Obli2'ation. The Bonds are limited obligations of the Authority on
behalf of the District and are payable solely from and secured solely by the Special Tax
Revenues and the amowlts in the Bond FWld (including the Special Tax Prepayments Account
therein), the Reserve Flmd (provided that amOlmts in the Senior SubaccOlmt may only be used
to pay amowlts due on the Bonds, other than the Series 2006B Bonds, and otherwise as
provided in Section 4.05, and amOlmts in the Subordinate SubaccOlmt may only be used to pay
amowlts due on the Series 2006B Bonds, and as otherwise provided in Section 4.(5) and, until
disbursed as provided herein, the Special Tax Flmd.
Section 5.03. Extension of Time for Pavment. In order to prevent any accumulation of
claims for interest after maturity, the Authority shall not, directly or indirectly, extend or
consent to the extension of the time for the payment of any claim for interest on any of the
Bonds and shall not, directly or indirectly, be a party to the approval of any SUcll arrangement
by purchasing or hmding said claims for interest or in any other manner. In case any such
claim for interest shall be extended or fWlded, whether or not with the consent of the
Authority, such claim for interest so extended or hmded shall not be entitled, in case of default
hereunder, to tile benefits of tllis Agreement, except subject to tile prior payment in full of tile
principal of all of the Bonds then Outstanding and of all claims for interest which shall not have
so extended or fWlded.
Section 5.04. A2'ainst Encumbrances. The AutllOrity will not encumber, pledge or place
any charge or lien upon any of the Special Tax Revenues or other amOlmts pledged to the
Bonds superior to or on a parity Witll tile pledge and lien herein created for tile benefit of tile
Bonds, except as permitted by this Agreement.
Section 5.05. Books and Records. The Authority will keep, or cause to be kept, proper
books of record and accounts, separate from all otller records and accowlts of tile AutllOrity, in
which complete and correct entries shall be made of all transactions relating to the expenditure
of amowlts disbursed from tile Administrative Expense FWld and to tile Special Tax Revenues.
Such books of record and accounts shall at all times during business hours be subject to the
inspection of tile Fiscal Agent and tile Owners of not less tl1an ten percent (10%) of tile principal
amOlmt of the Bonds then Outstanding, or their representatives duly authorized in writing.
Section 5.06. Protection of Securitv and Ri2'hts of Owners. The Authority will preserve
and protect tile security of tile Bonds and tile rights of tile Owners, and will warrant and
defend their rights against all claims and demands of all persons. From and after the delivery
of any of tile Bonds by tile AutllOrity, tile Bonds shall be incontestable by tile AutllOrity.
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Section 5.07. Com?liance with Law. The Authority will comply with all applicable
provisions of the Act and law in administering the District and completing the acquisition of
the Project; provided that the Authority shall have no obligation to advance any of its own
funds for any purpose whatsoever wlder this Agreement.
Section 5.0S. Collection of SDecial Tax Revenues. The Authority shall comply with all
requirements of the Act so as to assure the timely collection of Special Tax Revenues, including
without limitation, the enforcement of delinquent Special Taxes.
On or within five (5) Business Days of each June 1, the Fiscal Agent shall provide the
Treasurer with a notice stating the amount then on deposit in the Bond Fund, and in the
subaccowlts within the Reserve Fund, and informing the Authority that the Special Taxes may
need to be levied pursuant to the Ordinance as necessary to provide for the debt service to
become due on the Bonds in the calendar year that commences in the Fiscal Year for which the
levy is to be made, and Administrative Expenses and replenishment (if necessary) of the Senior
Subaccowlt and of the Subordinate Subaccowlt of the Reserve Fund so that the balance therein
(taking into accOlmt, with respect to the Senior SubaccOlmt, the amOlmt available to be drawn
wlder the Reserve FWld Policy) equals the Senior Subaccowlt Reserve Requirement and the
Subordinate Subaccount Reserve Requirement, respectively. The receipt of or failure to receive
such notice by the Treasurer shall in no way affect the obligations of the Treasurer wlder the
following two paragraphs. Upon receipt of such notice, the Treasurer shall commlmicate with
the Auditor to ascertain the relevant parcels on which the Special Taxes are to be levied, taking
into accOlmt any parcel splits during the preceding and then current year.
The Treasurer shall effect the levy of the Special Taxes each Fiscal Year in accordance
with the Ordinance by each July 15 that the Bonds are outstanding, or otherwise such that the
computation of the levy is complete before the final date on which Auditor will accept the
transmission of the Special Tax amowlts for the parcels within the District for inclusion on the
next real property tax roll. Upon the completion of the computation of the amounts of the levy,
the Treasurer shall prepare or cause to be prepared, and shall transmit to the Auditor, such data
as the Auditor requires to include the levy of the Special Taxes on the next real property tax
roll.
The Treasurer shall fix and levy the amowlt of Special Taxes within the District required
for the payment of principal of and interest on any outstanding Bonds of the District becoming
due and payable during the ensuing year, including any necessary replenishment or
expenditure of the Senior SubaccOlmt and of the Subordinate Subaccount of the Reserve Flmd
and an amowlt estimated to be sufficient to pay the Administrative Expenses (including
amOlmts necessary to discharge any obligation under Section 5.13) during such year, taking
into accowlt the balances in such funds and in the Special Tax Fund. The Special Taxes so
levied shall not exceed the authorized amOlmts as provided in the proceedings pursuant to the
Resolution of Formation.
The Special Taxes shall be payable and be collected in the same manner and at the same
time and in the same installment as the general taxes on real property are payable, and have the
same priority, become delinquent at the same time and in the same proportionate amowlts and
bear the same proportionate penalties and interest after delinquency as do the ad valorem taxes
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on real property; provided that, pursuant to and in accordance with the Ordinance, the Special
Taxes may be collected by means of direct billing of the property owners within the District, in
which event the Special Taxes shall become delinquent if not paid when due pursuant to said
billing.
Section 5.09. Covenant to Foreclose. Pursuant to Section 53356.1 of the Act, the
Authority hereby covenants with and for the benefit of the Owners of the Bonds that it will
order, and cause to be commenced as hereinafter provided, and thereafter diligently prosecute
to judgment (wlless such delinquency is tlleretofore brought current), an action in tile superior
court to foreclose the lien of any Special Tax or installment thereof not paid when due as
provided in tile following paragraph. The Treasurer shall notify tile AutllOrity Attomey of any
such delinquency of which it is aware, and the Authority Attomey shall commence, or cause to
be commenced, such proceedings.
On or about February 15 and June 15 of each Fiscal Year, tile Treasurer shall compare
the amount of Special Taxes theretofore levied in the District to the amOlmt of Special Tax
Revenues tlleretofore received by tile AutllOrity, and:
(A) Individual Delinauencies. If tile Treasurer determines tllat any single parcel
subject to the Special Tax in the District is delinquent in the payment of Special Taxes in
tile aggregate amowlt of $5,000 or more, tllen tile Treasurer shall send or cause to be
sent a notice of delinquency (and a demand for immediate payment thereof) to the
property owner witllin 45 days of such determination, and (if tile delinquency remains
lmcured) foreclosure proceedings shall be commenced by the Authority within 90 days
of such determination. Notwitllstanding tile foregoing, tile Treasurer may defer such
action if the amOlmts in the subaccounts of the Reserve Flmd (taking into account
amowlts available to be drawn under tile Reserve Fund Policy) aggregate at least an
amOlmt equal to the Maximum Reserve Fund AccOlmt.
(B) AI!2Tel!ate Delimmencies. If the Treasurer determines that (i) the total
amowlt of delinquent Special Tax for tile prior Fiscal Year for tile entire District,
(including the total of delinquencies lmder subsection (A) above), exceeds 5% of the
total Special Tax due and payable for tile prior Fiscal Year, or (ii) tllere are ten (10) or
fewer owners of real property within the District, determined by reference to the latest
available secured property tax roll of tile County, tile Treasurer shall notify or cause to
be notified property owners who are then delinquent in the payment of Special Taxes
(and demand immediate payment of tile delinquency) witllin 45 days of such
determination, and the Authority shall commence foreclosure proceedings within 90
days of such determination against each parcel of land in tile District Witll a Special Tax
delinquency.
The Treasurer and the Authority Attomey, as applicable, are hereby authorized to
employ cowlsel to conduct any such foreclosure proceedings. The fees and expenses of any
such counsel (including a charge for Authority staff time) in conducting foreclosure
proceedings shall be an Administrative Expense hereunder.
Section 5.10. Furtller Assurances. The AutllOrity will adopt, make, execute and deliver
any and all such further resolutions, instruments and assurances as may be reasonably
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necessary or proper to carry out tile intention or to facilitate tile performance of tllis Agreement,
and for the better assuring and confirming lmto the Owners of the rights and benefits provided
in tllis Agreement.
Section 5.11. Private Activitv Bond Limitations. The AutllOrity shall assure tllat tile
proceeds of the Series 2006 Bonds and any amounts held in the Improvement Fund are not so
used as to cause tile Series 2006 Bonds to satisfy tile private business tests of section 141(b) of
the Code or the private loan financing test of section 141 (c) of the Code.
Section 5.12. Federal Guarantee Prohibition. The Authority shall not take any action or
permit or suffer any action to be taken if tile result of tile same would be to cause tile Series
2006 Bonds to be "federally guaranteed" within the meaning of Section 149(b) of the Code.
Section 5.13. Rebate Reouirement. The Authority shall take any and all actions
necessary to assure compliance Witll section 14R(f) of tile Code, relating to tile rebate of excess
investment eamings, if any, to the federal govemment, to the extent that such section is
applicable to tile Series 2006 Bonds.
If necessary, tile AutllOrity may use amowlts in tile subaccounts witllin tile Reserve
Flmd (in accordance with the priorities in Section 4.0(G)), amOlmts on deposit in the
Administrative Expense FWld, and any otller fWlds available to tile District, including amowlts
advanced by the Authority or the City, in its respective sole discretion, to be repaid by the
District as soon as practicable from amounts described in tile preceding clauses, to satisfy its
obligations under this Section 5.13. The Treasurer shall take note of any investment of monies
hereunder in excess of tile yield on tile Series 2006 Bonds, and shall take such actions as are
necessary to ensure compliance with this Section 5.13, such as increasing the portion of the
Special Tax levy for Administration Expenses as appropriate to have funds available in tile
Administrative Expense Fund to satisfy any rebate liability lmder this Section 5.13.
Section 5.14. No Arbitral!~. The Authority shall not take, or permit or suffer to be taken
by tile Fiscal Agent or otllerwise, any action Witll respect to tile proceeds of tile Series 2006
Bonds which, if such action had been reasonably expected to have been taken, or had been
deliberately and intentionally taken, on tile date of issuance of tile Series 2006 Bonds would
have caused the Series 2006 Bonds to be "arbitrage bonds" within the meaning of section 148 of
tile Code.
Section 5.15. Yield of tile Bonds. hl determining tile yield of tile Series 2006 Bonds to
comply with Section 5.13 and 5.14 hereof, the Authority will take into accOlmt redemption
(including premium, if any) in advance of maturity based on tile reasonable expectations of tile
Authority, as of the Closing Date, regarding prepayments of Special Taxes and use of
prepayments for redemption of tile Bonds, WitllOut regard to whetller or not prepayments are
received or Series 2006 Bonds redeemed.
Section 5.16. Maintenance of Tax-Exemvtion. The Authority shall take all actions
necessary to assure tile exclusion of interest on tile Series 2006 Bonds from tile gross income of
the Owners of the Series 2006 Bonds to the same extent as such interest is permitted to be
excluded from gross income wlder tile Code as in effect on tile date of issuance of tile Series
2006 Bonds.
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Section 5.17. Continuinl! Disclosure to Owners. ill addition to its obligations under
Section 9.07, tile AutllOrity hereby covenants and agrees tllat it will comply Witll and carry out
all of the provisions of the Continuing Disclosure Agreement. Notwithstanding any other
provision of tllis Agreement, failure of tile AutllOrity to comply Witll tile Continuing Disclosure
Agreement shall not be considered a default hereunder; however, any Participating
Underwriter or any holder or Beneficial Owner (as defined in Section 2.13) of tile Bonds may
take such actions as may be necessary and appropriate to compel performance by the Authority
of its obligations tllerewlder, including seeking mandate or specific performance by court
order.
One or more owners of real property in the District as of the Closing Date may also
enter into continuing disclosure agreements for tile benefit of tile holders and beneficial owners
of the Bonds, and the Authority shall have no obligation whatsoever to enforce any obligations
wlder any such agreement.
Section 5.1S. Reduction of Svecial Taxes. The AutllOrity covenants and agrees to not
consent or conduct proceedings with respect to a reduction in the maximum Special Taxes that
may be levied in tile District below an amowlt, for any Fiscal Year, equal to 110% of tile
aggregate of the Debt Service due on the Bonds in such Fiscal Year, plus a reasonable estimate
of Administrative Expenses for such Fiscal Year. It is hereby acknowledged tllat Bondowners
are purchasing the Bonds in reliance on the foregoing covenant, and that said covenant is
necessary to assure tile full and timely payment of tile Bonds.
Section 5.19. Limits on Svecial Tax Waivers and Bond Tenders. The AutllOrity
covenants not to exercise its rights lmder the Act to waive delinquency and redemption
penalties related to tile Special Taxes or to declare Special Tax penalties amnesty program if to
do so would materially and adversely affect the interests of the owners of the Bonds and
furtller covenants not to permit tile tender of Bonds in payment of any Special Taxes except
upon receipt of a certificate of an Independent Financial Consultant that to accept such tender
will not result in tile AutllOrity having insufficient Special Tax revenues to pay tile principal of
and interest on the Bonds remaining Outstanding following such tender.
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ARTICLE VI
INVESTMENTS, DISPOSITION OF INVESTMENT PROCEEDS, LIABILITY
OF THE AUTHORITY
Section 6.01. De?osit and Investment of Monevs in Flmds. Moneys in any fund or
account created or established by tllis Agreement and held by tile Fiscal Agent shall be invested
by the Fiscal Agent in Permitted illvestments, as directed pursuant to an Officer's Certificate
filed Witll tile Fiscal Agent at least two (2) Business Days in advance of tile making of such
investments. In the absence of any such Officer's Certificate, the Fiscal Agent shall invest, to
tile extent reasonably practicable, any such moneys in Permitted Investments described in
clause (g) of the definition thereof in Section 1.03, which by their terms mature prior to the date
on which such moneys are required to be paid out hereunder. The Treasurer shall make note of
any investment of funds hereunder in excess of the yield on the Bonds, so that appropriate
actions can be taken to assure compliance Witll Section 5.13.
Moneys in any fWld or accowlt created or established by tllis Agreement and held by
the Treasurer shall be invested by the Treasurer in any Permitted Investment, which in any
event by tlleir terms mature prior to tile date on which such moneys are required to be paid out
hereunder. Obligations purchased as an investment of moneys in any fund shall be deemed to
be part of such fWld or accowlt, subject, however, to tile requirements of tllis Agreement for
transfer of interest eamings and profits resulting from investment of amOlmts in ftmds and
accounts. Whenever in tllis Agreement any moneys are required to be transferred by tile
Authority to the Fiscal Agent, such transfer may be accomplished by transferring a like amount
of Permitted hlVestments.
The Fiscal Agent and its affiliates or tile Treasurer may act as sponsor, advisor,
depository, principal or agent in the acquisition or disposition of any investment. Neither the
Fiscal Agent nor tile Treasurer shall incur any liability for losses arising from any investments
made pursuant to this Section. The Fiscal Agent shall not be required to determine the legality
of any investments.
The value of investments in tile Senior Subaccount of tile Reserve Fund or tile Bond
Flmd (including any accOlmts therein) shall be determined as follows: (a) for the purpose of
determining tile amowlt in any such fWld, all Permitted Investments credited to any such fWld
shall be valued at fair market value, and the Fiscal Agent shall determine the fair market value
based on accepted industry standards and from accepted industry providers (accepted industry
providers shall include but are not limited to pricing services provided by Financial Times
hlteractive Data Corporation, Merrill Lynch, Salomon Smitll Bamey, Bear Steams, or Lehman
Brothers); (b) as to certificates of deposit and bankers' acceptances: the face amOlmt thereof,
plus, accrued interest tllereon; and (c) as to any investment not specified above: tile value
thereof established by prior agreement among the Authority, the Fiscal Agent, and Bond
hlsurer.
Except as otllerwise provided in tile preceding paragraph or tile next sentence, all
investments of amOlmts deposited in any fund or accOlmt created by or pursuant to this
Agreement, or otllerwise containing gross proceeds of tile Bonds (witllin tile meaning of section
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14R of tile Code) shall be acquired, disposed of, and valued (as of tile date tllat valuation is
required by this Agreement or the Code) at Fair Market Value. The Fiscal Agent shall have no
duty in connection witll tile determination of Fair Market Value otller tlllil to follow tile
investment direction of an Authorized Officer in any written direction of any Authorized
Officer. hlVestments in funds or accowlts (or portions tllereof) tllat are subject to a yield
restriction under the applicable provisions of the Code and (lmless valuation is lmdertaken at
least li1l1ually) investments in tile subaccounts witllin tile Reserve FWld shall be valued at tlleir
present value (within the meaning of section 148 of the Code). The Fiscal Agent shall not be
liable for verification of tile application of such sections of tile Code.
hlVestments in lilY and all fWlds lild accounts may be commingled in a separate fWld
or ftmds for purposes of making, holding and disposing of investments, notwithstanding
provisions herein for trlilsfer to or holding in or to tile credit of particular fWlds or accowlts of
amOlmts received or held by the Fiscal Agent or the Treasurer herelmder, provided that the
Fiscal Agent or tile Treasurer, as applicable, shall at all times accowlt for such investments
strictly in accordance with the funds and accOlmts to which they are credited and otherwise as
provided in tllis Agreement.
The Fiscal Agent or tile Treasurer, as applicable, shall sell at Fair Market Value, or
present for redemption, any investment security whenever it shall be necessary to provide
moneys to meet lilY required payment, transfer, witlldrawal or disbursement from tile fWld or
account to which such investment security is credited and neither the Fiscal Agent nor the
Treasurer shall be liable or responsible for lilY loss resulting from tile acquisition or disposition
of such investment security in accordance herewith.
The Authority acknowledges that to the extent regulations of the Comptroller of the
Currency or otller applicable regulatory entity grant tile AutllOrity tile right to receive
brokerage confirmations of security transactions as they occur, the Authority specifically
waives receipt of such confirmations to tile extent permitted by law. The Fiscal Agent will
fumish the Authority periodic cash transaction statements which include detail for all
investment transactions made by tile Fiscal Agent hereunder.
Section 6.02. Limited Oblil!ation. The AutllOrity's obligations herewlder are limited
obligations of the Authority on behalf of the District and are payable solely from and secured
solely by tile Special Tax Revenues lild tile amowlts in tile Special Tax FWld, tile Bond FWld
(including the Special Tax Prepayments Account therein) and the Reserve Fund (including the
subaccowlts tllerein, subject to tile limitations in Section 4.(5) created hereunder.
Section 6.03. Liabilitv of AutllOritv. The AutllOrity shall not incur lilY responsibility in
respect of the Bonds or this Agreement other than in connection with the duties or obligations
explicitly herein or in tile Bonds assigned to or imposed upon it. The AutllOrity shall not be
liable in connection with the performance of its duties herelmder, except for its own negligence
or willful default. The AutllOrity shall not be bowld to ascertain or inquire as to tile
performance or observance of any of the terms, conditions covenants or agreements of the
Fiscal Agent herein or of any of tile documents executed by tile Fiscal Agent in connection Witll
the Bonds, or as to the existence of a default or event of default therelmder.
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hl tile absence of bad faitll, tile AutllOrity, including tile Treasurer, may conclusively
rely, as to the truth of the statements and the correctness of the opinions expressed therein,
upon certificates or opinions fumished to tile AutllOrity mld conforming to tile requirements of
this Agreement. The Authority, including the Treasurer, shall not be liable for any error of
judgment made in good faitll wlless it shall be proved tllat it was negligent in ascertaining tile
pertinent facts.
No provision of this Agreement shall require the Authority to expend or risk its own
general fWlds or otllerwise incur mlY finmlcialliability (otller tllml Witll respect to tile Special
Tax Revenues) in the performance of any of its obligations herelmder, or in the exercise of any
of its rights or powers, if it shall have reasonable growlds for believing tllat repayment of such
funds or adequate indemnity against such risk or liability is not reasonably assured to it.
The Authority and the Treasurer may rely and shall be protected in acting or refraining
from acting upon any notice, resolution, request, consent, order, certificate, report, warrant,
bond or other paper or document believed by it to be genuine and to have been signed or
presented by tile proper party or proper parties. The AutllOrity may consult Witll cowlsel, who
may be the Authority Attomey, with regard to legal questions, and the opinion of such cOlmsel
shall be full mld complete autllOrization mld protection in respect of any action taken or
suffered by it hereunder in good faith and in accordance therewith.
The Authority shall not be bOlmd to recognize any person as the Owner of a Bond
wlless mld until such Bond is submitted for inspection, if required, and his title tllereto
satisfactory established, if disputed.
Whenever in the administration of its duties lmder this Agreement the Authority or the
Treasurer shall deem it necessary or desirable tllat a matter be proved or established prior to
taking or suffering any action herelmder, such matter (lmless other evidence in respect thereof
be herein specifically prescribed) may, in tile absence of willful misconduct on tile part of tile
Authority, be deemed to be conclusively proved and established by a certificate of the Fiscal
Agent, ml Appraiser, ml hldependent Finmlcial Consultant or a Tax Consultmlt, mld such
certificate shall be full warrant to the Authority and the Treasurer for any action taken or
suffered under tile provisions of tllis Agreement or mlY Supplemental Agreement upon tile
faith thereof, but in its discretion the Authority or the Treasurer may, in lieu thereof, accept
otller evidence of such matter or may require such additional evidence as to it may seem
reasonable.
Section 6.04. Emvlovment of Al!ents bv Authoritv. In order to perform its duties and
obligations herewlder, tile AutllOrity and/ or tile Treasurer may employ such persons or entities
as it deems necessary or advisable. The Authority shall not be liable for any of the acts or
omissions of such persons or entities employed by it in good faitll hereunder, mld shall be
entitled to rely, and shall be fully protected in doing so, upon the opinions, calculations,
determinations mld directions of such persons or entities.
Section 6.05. Remedies of Bond hlsurer Uvon Default. If tile AutllOrity shall:
(A) fail to pay principal or interest on the Series 2006A Bonds when due mld
payable as provided herein; or
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(B) fail to observe any of the other covenants, agreements or conditions on its
part contained herein or in tile Series 2006A Bonds and such failure shall continue for
the period of 30 days after written notice thereof has been provided to the Authority by
tile Bond hlsurer or tile Fiscal Agent,
such failure shall constitute a default hereunder and, in such event, tile Bond hlsurer shall be
entitled to pursue any remedy available to the Owners of the Series 2006A Bonds herelmder, at
law or in equity to enforce tile AutllOrity's obligation to make such payments and honor such
covenants and agreements and shall be deemed the sole owner of the Series 2006A Bonds for
such purposes.
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ARTICLE VII
THE FISCAL AGENT
Section 7.01. Avvointment of Fiscal Al!ent. U.s. Bank National Association is hereby
appointed Fiscal Agent and paying agent for the Bonds. The Fiscal Agent lmdertakes to
perform such duties, and only such duties, as are specifically set fortll in tllis Agreement, mld
no implied covenants or obligations shall be read into this Agreement against the Fiscal Agent.
Any company into which the Fiscal Agent may be merged or converted or with which it
may be consolidated or any compmlY resulting from mlY merger, conversion or consolidation to
which it shall be a party or any company to which the Fiscal Agent may sell or transfer all or
substantially all of its corporate trust business, provided such compmlY shall be eligible wlder
the following paragraph of this Section, shall be the successor to such Fiscal Agent without the
execution or filing of mlY paper or mlY furtller act, mlytlling herein to tile contrary
notwithstanding.
The Authority may at any time remove the Fiscal Agent initially appointed, and any
successor tllereto, mld may appoint a successor or successors tllereto, but mlY such successor
shall be a bank, corporation or trust company having a combined capital (exclusive of
borrowed capital) and surplus of at least Fifty Million Dollars ($50,000,000), mld subject to
supervision or examination by federal or state authority. If such bank, corporation or trust
compmlY publishes a report of condition at least annually, pursumlt to law or to tile
requirements of any supervising or examining authority above referred to, then for the
purposes of tllis Section 7.01, combined capital and surplus of such bank or trust company shall
be deemed to be its combined capital and surplus as set forth in its most recent report of
condition so published.
The Fiscal Agent may at mlY time resign by giving written notice to tile AutllOrity mld
by giving to the Owners notice by mail of such resignation. Upon receiving notice of such
resignation, tile AutllOrity shall promptly appoint a successor Fiscal Agent by ml instrument in
writing. Any resignation or removal of the Fiscal Agent shall become effective upon acceptance
of appointment by tile successor Fiscal Agent.
If no appointment of a successor Fiscal Agent shall be made pursumlt to tile foregoing
provisions of this Section within forty-five (45) days after the Fiscal Agent shall have given to
tile AutllOrity written notice or after a vacmlcy in tile office of tile Fiscal Agent shall have
occurred by reason of its inability to act, the Fiscal Agent or any Owner may apply to any court
of competent jurisdiction to appoint a successor Fiscal Agent. Said court may tllereupon, after
such notice, if any, as such court may deem proper, appoint a successor Fiscal Agent.
If, by reason of the judgment of any court, or reasonable agency, the Fiscal Agent is
rendered wlable to perform its duties hereunder, all such duties mld all of tile rights mld
powers of the Fiscal Agent hereunder shall be assumed by and vest in the Treasurer of the
AutllOrity in trust for tile benefit of tile Owners. The AutllOrity covenmlts for tile direct benefit
of the Owners that its Treasurer in such case shall be vested with all of the rights and powers of
tile Fiscal Agent herewlder, and shall assume all of tile responsibilities and perform all of tile
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duties of tile Fiscal Agent herewlder, in trust for tile benefit of tile Owners of tile Bonds. hl
such event, the Treasurer may designate a successor Fiscal Agent qualified to act as Fiscal
Agent herewlder.
Section 7.02. Liabilitv of Fiscal Al!ent. The recitals of facts, covenants mld agreements
herein and in the Bonds contained shall be taken as statements, covenants and agreements of
tile AutllOrity, and tile Fiscal Agent assumes no responsibility for tile correcbless of tile same, or
makes any representations as to the validity or sufficiency of this Agreement or of the Bonds, or
shall incur mlY responsibility in respect tllereof, otller tllml in connection Witll tile duties or
obligations herein or in the Bonds assigned to or imposed upon it. The Fiscal Agent shall not
be liable in connection Witll tile performmlce of its duties herewlder, except for its own
negligence or willful default. The Fiscal Agent assumes no responsibility or liability for any
information, statement or recital in any offering memormldum or otller disclosure material
prepared or distributed with respect to the issuance of the Bonds.
ill the absence of bad faith, the Fiscal Agent may conclusively rely, as to the truth of the
statements mld tile correcbless of tile opinions expressed tllerein, upon certificates or opinions
fumished to the Fiscal Agent and conforming to the requirements of this Agreement; but in the
case of any such certificates or opinions by which mlY provision hereof are specifically required
to be fumished to the Fiscal Agent, the Fiscal Agent shall be lmder a duty to examine the same
to determine whetller or not tlley conform to tile requirements of tllis Agreement. Except as
provided above in this paragraph, Fiscal Agent shall be protected and shall incur no liability in
acting or proceeding, or in not acting or not proceeding, in good faitll, reasonably and in
accordance with the terms of this Agreement, upon any resolution, order, notice, request,
consent or waiver, certificate, statement, affidavit, or otller paper or document which it shall in
good faith reasonably believe to be genuine and to have been adopted or signed by the proper
person or to have been prepared mld fumished pursumlt to mlY provision of tllis Agreement,
and the Fiscal Agent shall not be under any duty to make any investigation or inquiry as to any
statements contained or matters referred to in any such instrument.
The Fiscal Agent shall not be liable for mlY error of judgment made in good faitll wlless
it shall be proved that the Fiscal Agent was negligent in ascertaining the pertinent facts.
No provision of this Agreement shall require the Fiscal Agent to expend or risk its own
funds or otllerwise incur mlY finmlcial liability in the performmlce of mlY of its duties
hereunder, or in the exercise of any of its rights or powers.
The Fiscal Agent shall be under no obligation to exercise any of the rights or powers
vested in it by tllis Agreement at tile request or direction of mlY of tile Owners pursumlt to tllis
Agreement lmless such Owners shall have offered to the Fiscal Agent reasonable security or
indemnity against tile costs, expenses mld liabilities which might be incurred by it in
compliance with such request or direction.
The Fiscal Agent may become the owner of the Bonds with the same rights it would
have if it were not tile Fiscal Agent.
The Fiscal Agent shall have no duty or obligation whatsoever to enforce tile collection of
Special Taxes or other ftmds to be deposited with it hereunder, or as to the correctness of any
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amowlts received, and its liability shall be limited to tile proper accounting for such fWlds as it
shall actually receive.
ill order to perform its duties and obligations herelmder, the Fiscal Agent may employ
such persons or entities as it deems necessary or advisable. The Fiscal Agent shall not be liable
for any of the acts or omissions of such persons or entities employed by it in good faith
hereunder, and shall be entitled to rely, mld shall be fully protected in doing so, upon tile
opinions, calculations, determinations and directions of such persons or entities.
Section 7.03. Books and Records: illformation. The Fiscal Agent will keep, or cause to
be kept, proper books of record and accowlts, separate from all otller records mld accounts of
the Fiscal Agent, in which complete and correct entries shall be made of all transactions relating
to tile expenditure of amounts disbursed from tile Bond FWld (including tile Special Tax
Prepayments Account therein), the Reserve Flmd (including the Senior Subaccount and the
Subordinate Subaccowlt tllerein), tile Special Tax FWld, tile Refunding Fund, tile Improvement
Flmd and the Costs of Issuance Fund. Such books of record and accOlmts shall at all times
during business hours be subject to tile inspection of tile AutllOrity mld tile Owners of not less
than ten percent (10%) of the principal amOlmt of the Bonds then Outstanding, or their
representatives duly autllOrized in writing upon reasonable prior notice.
The Fiscal Agent shall provide to tile AutllOrity such information relating to tile Bonds
and the ftmds and accounts maintained by the Fiscal Agent hereunder as the Authority shall
reasonably request, including but not limited to quarterly statements reporting funds held mld
transactions by the Fiscal Agent.
Section 7.04. Notice to Fiscal Al!ent. The Fiscal Agent may rely and shall be protected
in acting or refraining from acting upon any notice, resolution, request, consent, order,
certificate, report, warrant, bond or other paper or document believed in good faith by it to be
genuine mld to have been signed or presented by tile proper party or proper parties. The Fiscal
Agent may consult with counsel, who may be cOlmsel to the Authority, with regard to legal
questions, and tile opinion of such counsel shall be full mld complete autllOrization mld
protection in respect of any action taken or suffered by it herelmder in good faith and in
accordmlce tllerewitll.
The Fiscal Agent shall not be bound to recognize any person as tile Owner of a Bond
lmless and until such Bond is submitted for inspection, if required, and his title thereto
satisfactorily established, if disputed.
Whenever in tile administration of its duties wlder tllis Agreement tile Fiscal Agent
shall deem it necessary or desirable that a matter be proved or established prior to taking or
suffering mlY action herewlder, such matter (wlless otller evidence in respect tllereof be herein
specifically prescribed) may, in the absence of willful misconduct on the part of the Fiscal
Agent, be deemed to be conclusively proved and established by ml Officer's Certificate, mld
such certificate shall be full warrant to the Fiscal Agent for any action taken or suffered lmder
tile provisions of tllis Agreement or mlY Supplemental Agreement upon tile faitll tllereof, but in
its discretion the Fiscal Agent may, in lieu thereof, accept other evidence of such matter or may
require such additional evidence as to it may seem reasonable.
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Section 7.05. Comvensation. hldemnification. The AutllOrity shall pay to tile Fiscal
Agent from time to time reasonable compensation for all services rendered as Fiscal Agent
wlder tllis Agreement, and also all reasonable expenses, charges, counsel fees mld otller
disbursements, including those of their attomeys, agents and employees, incurred in and about
tile performmlce of tlleir powers and duties wlder tllis Agreement, but tile Fiscal Agent shall
not have a lien therefor on any funds at any time held by it lmder this Agreement. The
AutllOrity furtller agrees, to tile extent permitted by applicable law, to indemnify mld save tile
Fiscal Agent, its officers, employees, directors and agents harmless against any costs, expenses,
claims or liabilities whatsoever, including WitllOut limitation fees mld expenses of its attomeys,
which it may incur in the exercise and performance of its powers and duties herelmder which
are not due to its negligence or willful misconduct. The obligation of tile AutllOrity wlder tllis
Section shall survive resignation or removal of the Fiscal Agent lmder this Agreement and
payment of tile Bonds and discharge of tllis Agreement, but mlY monetary obligation of tile
Authority arising lmder this Section shall be limited solely to amOlmts on deposit in the
Administrative Expense Fund.
Section 7.06. Bond Insurer Ril!hts Rel!ardinl! tile Fiscal Al!ent. The Fiscal Agent may be
removed at any time, at the request of the Bond illsurer, for any breach of the trust set forth in
tllis Agreement. The Bond hlsurer shall receive prior written notice of any Fiscal Agent
resignation. Every successor Fiscal Agent appointed pursuant to Section 7.01 shall be a trust
compmlY or bmlk in good stmlding located in or incorporated wlder tile laws of tile State, duly
authorized to exercise trust powers and subject to examination by federal or state authority,
having a reported capital and surplus of not less tl1an $75,000,000 mld acceptable to tile Bond
illsurer. Any successor Fiscal Agent shall not be appointed unless the Bond illsurer approves
such successor in writing. Notwitllstmlding mlY otller provision of tllis Agreement, no
removal, resignation or termination of the Fiscal Agent shall take effect until a successor,
acceptable to tile Bond hlsurer, shall be appointed by tile AutllOrity.
Notwitllstmlding mlY otller provision of tllis Agreement, in determining whetller tile
rights of the Owners of the Series 2006A Bonds will be adversely affected by any action taken
pursumlt to tile terms mld provisions of tllis Agreement, tile Fiscal Agent shall consider tile
effect on the Owners of the Series 2006A Bonds as if there were no Bond Insurance Policy.
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ARTICLE VIII
MODIFICATION OR AMENDMENT OF THIS AGREEMENT
Section R.01. Amendments Permitted. This Agreement and tile rights mld obligations
of the Authority and of the Owners of the Bonds may be modified or amended at any time by a
Supplemental Agreement pursuant to tile affirmative vote at a meeting of Owners, or Witll tile
written consent without a meeting, of the Owners of (i) at least sixty percent (60%) in aggregate
principal amount of tile Series 2006A Bonds tllen Outstmlding and (ii) at least sixty percent
(60%) in aggregate principal amount of then Series 2006B Bonds then Outstanding, in each case
exclusive of Bonds disqualified as provided in Section R.04. No such modification or
amendment shall (i) extend the maturity of any Bond or reduce the interest rate thereon, or
otllerwise alter or impair tile obligation of tile AutllOrity to pay tile principal of, and tile interest
and any premium on, any Bond, without the express consent of the Owner of such Bond, or (ii)
permit tile creation by tile AutllOrity of mlY pledge or lien upon tile Special Taxes superior to or
on a parity with the pledge and lien created for the benefit of the Owners of the Bonds (except
as otllerwise permitted by tile Act, tile laws of tile State of Califomia or tllis Agreement), or (iii)
reduce the percentage of Bonds of each series required for the amendment hereof. Any such
amendment may not modify mlY of tile rights or obligations of tile Fiscal Agent WitllOut its
written consent.
This Agreement and the rights and obligations of the Authority and of the Owners may
also be modified or amended at mlY time by a Supplemental Agreement, WitllOut tile consent of
any Owners, only to the extent permitted by law and only for anyone or more of the following
purposes:
(A) to add to tile covenmlts mld agreements of tile AutllOrity in tllis Agreement
contained, other covenants and agreements thereafter to be observed, or to limit or
surrender mlY right or power herein reserved to or conferred upon tile AutllOrity;
(B) to make modifications not adversely affecting mlY Outstmlding series of
Bonds of the Authority in any material respect;
(C) to make such provisions for the purpose of curing any ambiguity, or of
curing, correcting or supplementing mlY defective provision contained in tllis
Agreement, or in regard to questions arising lmder this Agreement, as the Authority or
tile Fiscal Agent may deem necessary or desirable and not inconsistent Witll tllis
Agreement, and which shall not adversely affect the rights of the Owners of the Bonds;
(D) to make such additions, deletions or modifications as may be necessary or
desirable to assure exemption from gross federal income taxation of interest on tile
Bonds; and
(E) in connection with the Issuance of Parity Bonds lmder and pursuant to
Section 2.14.
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Section R.02. Owners' Meetinl!s. The AutllOrity may at mlY time call a meeting of tile
Owners. In such event the Authority is authorized to fix the time and place of said meeting and
to provide for tile giving of notice tllereof, and to fix mld adopt rules mld regulations for tile
cond uct of said meeting.
Section 8.03. Procedure for Amendment with Written Consent of Owners. The
AutllOrity mld tile Fiscal Agent may at mlY time adopt a Supplemental Agreement amending
the provisions of the Bonds or of this Agreement or any Supplemental Agreement, to the extent
tllat such amendment is permitted by Section R.01, to take effect when mld as provided in tllis
Section. A copy of such Supplemental Agreement, together with a request to Owners for their
consent tllereto, shall be mailed by first class mail, by tile Fiscal Agent to each Owner of Bonds
Outstanding, but failure to mail copies of such Supplemental Agreement and request shall not
affect tile validity of tile Supplemental Agreement when assented to as in tllis Section provided.
Such Supplemental Agreement shall not become effective wlless tllere shall be filed
with the Fiscal Agent the written consents of the Owners of at least sixty percent (60%) in
aggregate principal amowlt of tile Bonds tllen Outstmlding (exclusive of Bonds disqualified as
provided in Section 8.04) and a notice shall have been mailed as hereinafter in this Section
provided. Each such consent shall be effective only if accompanied by proof of ownership of
the Bonds for which such consent is given, which proof shall be such as is permitted by Section
9.04. Any such consent shall be binding upon tile Owner of tile Bonds giving such consent mld
on any subsequent Owner (whether or not such subsequent Owner has notice thereof) lmless
such consent is revoked in writing by tile Owner giving such consent or a subsequent Owner
by filing such revocation with the Fiscal Agent prior to the date when the notice hereinafter in
tllis Section provided for has been mailed.
After tile Owners of tile required percentage of Bonds shall have filed tlleir consents to
the Supplemental Agreement, the Authority shall mail a notice to the Owners in the manner
hereinbefore provided in tllis Section for tile mailing of tile Supplemental Agreement, stating in
substance that the Supplemental Agreement has been consented to by the Owners of the
required percentage of Bonds mld will be effective as provided in tllis Section (but failure to
mail copies of said notice shall not affect the validity of the Supplemental Agreement or
consents tllereto). Proof of tile mailing of such notice shall be filed Witll tile Fiscal Agent. A
record, consisting of the papers required by this Section 8.03 to be filed with the Fiscal Agent,
shall be proof of tile matters tllerein stated until tile contrary is proved. The Supplemental
Agreement shall become effective upon the filing with the Fiscal Agent of the proof of mailing
of such notice, mld tile Supplemental Agreement shall be deemed conclusively binding (except
as otherwise hereinabove specifically provided in this Article) upon the Authority and the
Owners of all Bonds at tile expiration of sixty (60) days after such filing, except in tile event of a
final decree of a court of competent jurisdiction setting aside such consent in a legal action or
equitable proceeding for such purpose commenced witllin such sixty-day period.
Section R.04. Disaualified Bonds. Bonds owned or held for tile accowlt of tile
Authority, excepting any pension or retirement ftmd, shall not be deemed Outstanding for the
purpose of any vote, consent or otller action or any calculation of Outstmlding Bonds provided
for in this Article VIII, and shall not be entitled to vote upon, consent to, or take any other
action provided for in tllis Article VIII; provided, however, tllat tile Fiscal Agent shall not be
deemed to have knowledge that any Bond is owned or held by the Authority lmless the
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AutllOrity is tile registered Owner or tile Fiscal Agent has received written notice tllat any otller
registered Owner is an Owner for the account of the Authority.
Section 8.05. Effect of Suvvlemental Al!reement. From and after the time any
Supplemental Agreement becomes effective pursumlt to tllis Article VIII, tllis Agreement shall
be deemed to be modified and amended in accordance therewith, the respective rights, duties
mld obligations under tllis Agreement of tile AutllOrity and all Owners of Bonds Outstmlding
shall thereafter be determined, exercised and enforced hereunder subject in all respects to such
modifications mld amendments, and all tile terms mld conditions of mlY such Supplemental
Agreement shall be deemed to be part of the terms and conditions of this Agreement for any
mld all purposes.
Section R.06. Endorsement or Revlacement of Bonds Issued After Amendments. The
Authority may determine that Bonds issued and delivered after the effective date of any action
taken as provided in tllis Article VIII shall bear a notation, by endorsement or otllerwise, in
form approved by the Authority, as to such action. ill that case, upon demand of the Owner of
mlY Bond Outstanding at such effective date mld presentation of his Bond for tllat purpose at
the Principal Office of the Fiscal Agent or at such other office as the Authority may select and
designate for tllat purpose, a suitable notation shall be made on such Bond. The AutllOrity may
determine that new Bonds, so modified as in the opinion of the Authority is necessary to
conform to such Owners' action, shall be prepared, executed mld delivered. In tllat case, upon
demand of the Owner of any Bonds then Outstanding, such new Bonds shall be exchanged at
tile Principal Office of tile Fiscal Agent WitllOut cost to mlY Owner, for Bonds tllen Outstanding,
upon surrender of such Bonds.
Section 8.07. Amendatorv Endorsement of Bonds. The provisions of this Article VIII
shall not prevent mlY Owner from accepting any amendment as to tile particular Bonds held by
him, provided that due notation thereof is made on such Bonds.
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ARTICLE IX
MISCELLANEOUS
Section 9.01. Benefits of Al!reement Limited to Parties. Notlling in tllis Agreement,
expressed or implied, is intended to give to any person other than the Authority, the Fiscal
Agent and tile Owners, mlY right, remedy, claim wlder or by reason of tllis Agreement. Any
covenants, stipulations, promises or agreements in this Agreement contained by and on behalf
of tile AutllOrity shall be for tile sole mld exclusive benefit of tile Owners mld tile Fiscal Agent.
Section 9.02. Successor is Deemed hlcluded in All References to Predecessor. Whenever
in this Agreement or any Supplemental Agreement either the Authority or the Fiscal Agent is
named or referred to, such reference shall be deemed to include tile successors or assigns
thereof, and all the covenants and agreements in this Agreement contained by or on behalf of
tile AutllOrity or tile Fiscal Agent shall bind mld inure to tile benefit of tile respective successors
and assigns thereof whether so expressed or not.
Section 9.03. Discharl!e of Al!reement. The Authority shall have the option to pay and
discharge tile entire indebtedness on all or mlY portion of tile Bonds Outstmlding in anyone or
more of the following ways:
(A) by well and truly paying or causing to be paid the principal of, and interest
mld mlY premium on, such Bonds Outstanding, as and when tile same become due mld
payable;
(B) by depositing with the Fiscal Agent, in trust, at or before maturity, money
which, togetller witll tile amowlts tllen on deposit in tile fWlds mld accounts provided
for in Sections 4.04 and 4.05 is fully sufficient to pay such Bonds Outstanding, including
all principal, interest mld redemption premiums; or
(C) by irrevocably depositing Witll tile Fiscal Agent, in trust, cash mld Federal
Securities in such amount as the Authority shall determine as confirmed by Bond
Counselor an independent certified public accowltmlt will, togetller witll tile interest to
accrue thereon and moneys (not including the Reserve Fund Policy) then on deposit in
tile fund mld accounts provided for in Sections 4.04 mld 4.05, be fully sufficient to pay
and discharge the indebtedness on such Bonds (including all principal, interest and
redemption premiums) at or before tlleir respective maturity dates, and paying all
amOlmts due and owing or to become due and owing by the Authority lmder the
Reserve Fund Policy (including, but not limited to, repayment of any witlldrawals
lmder the Reserve Flmd Policy which have not theretofore been repaid).
If the Authority shall have taken any of the actions specified in (A), (B) or (C) above,
mld if such Bonds are to be redeemed prior to tile maturity tllereof notice of such redemption
shall have been given as in this Agreement provided or provision satisfactory to the Fiscal
Agent shall have been made for tile giving of such notice, tllen, at tile election of tile AutllOrity,
and notwithstanding that any Bonds shall not have been surrendered for payment, the pledge
of tile Special Taxes mld otller fWlds provided for in tllis Agreement mld all otller obligations of
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tile AutllOrity under tllis Agreement Witll respect to such Bonds Outstanding shall cease mld
terminate. Notice of such election shall be filed with the Fiscal Agent. Notwithstanding the
foregoing, tile obligation of tile AutllOrity to payor cause to be paid to tile Owners of tile Bonds
not so surrendered and paid all sums due thereon, all amOlmts owing to the Fiscal Agent
pursumlt to Section 7.05, mld otllerwise to assure tllat no action is taken or failed to be taken if
such action or failure adversely affects the exclusion of interest on the Bonds from gross income
for federal income tax purposes, shall continue in mlY event.
Upon complimlce by tile AutllOrity witll tile foregoing Witll respect to all Bonds
Outstanding, any ftmds held by the Fiscal Agent after payment of all fees and expenses of the
Fiscal Agent, which are not required for tile purposes of tile preceding paragraph, shall be paid
over to the Authority and any Special Taxes thereafter received by the Authority shall not be
remitted to tile Fiscal Agent but shall be retained by tile AutllOrity to be used for any purpose
permitted lmder the Act.
Notwithstanding anything herein to the contrary, in the event that the principal and/or
interest due on tile Series 2006A Bonds shall be paid by tile Bond hlsurer pursumlt to tile Bond
illsurance Policy, the Series 2006A Bonds shall remain Outstanding for all purposes, not be
defeased or otllerwise satisfied and not be considered paid by tile AutllOrity, mld tile
assignment and pledge of the Special Taxes lmder this Agreement and all covenants,
agreements mld otller obligations of tile AutllOrity to the Owners of tile Series 2006A Bonds
shall continue to exist and shall flm to the benefit of the Bond illsurer, and the Bond illsurer
shall be subrogated to tile rights of such Owners.
Section 9.04. Execution of Documents mld Proof of Ownershi? bv Owners. Any
request, declaration or other instrument which this Agreement may require or permit to be
executed by Owners may be in one or more instruments of similar tenor, and shall be executed
by Owners in person or by their attomeys appointed in writing.
Except as otherwise herein expressly provided, the fact and date of the execution by any
Owner or his attomey of such request, declaration or otller instrument, or of such writing
appointing such attomey, may be proved by the certificate of any notary public or other officer
autllOrized to take acknowledgments of deeds to be recorded in tile state in which he purports
to act, that the person signing such request, declaration or other instrument or writing
acknowledged to him tile execution tllereof, or by ml affidavit of a wibless of such execution,
duly swom to before such notary public or other officer.
Except as otherwise herein expressly provided, the ownership of registered Bonds and
tile amowlt, maturity, number mld date of holding tile same shall be proved by tile registry
books.
Any request, declaration or other instrument or writing of the Owner of any Bond shall
bind all future Owners of such Bond in respect of any tiling done or suffered to be done by tile
Authority or the Fiscal Agent in good faith and in accordance therewith.
Section 9.05. Waiver of Personal Liabilitv. No director, COlmcilmember, officer, official,
agent or employee of tile AutllOrity, tile City or tile District shall be individually or personally
liable for the payment of the principal of, or interest or any premium on, the Bonds; but nothing
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herein contained shall relieve mlY such director, CowlCilmember, officer, official, agent or
employee from the performance of any official duty provided by law.
Section 9.06. Notices to and Demands on Authoritv. Fiscal Al!ent and Bond msurer.
Any notice or demmld which by any provision of tllis Agreement is required or permitted to be
given or served by the Fiscal Agent or the Bond Insurer to or on the Authority may be given or
served by being deposited postage prepaid in a post office letter box addressed (wltil anotller
address is filed by the Authority with the Fiscal Agent and the Bond msurer) as follows:
Temecula Public Financing Authority
c/o City of Temecula
43200 Business Park Drive
Temecula, CA 92590
Attn: Treasurer
Any notice or demand which by any provIsion of this Agreement is required or
permitted to be given or served by tile AutllOrity to or on tile Fiscal Agent may be given or
served by being deposited postage prepaid in a post office letter box addressed (lmtil another
address is filed by tile Fiscal Agent Witll tile AutllOrity) as follows (provided tllat mlY such
notice shall not be effective lmtil actually received by the Fiscal Agent):
u.s. Bank National Association
633 W. Fift1l Street, 24~ Floor
Los Angeles, CA 90071
Attention: Corporate Trust Services
Reference: Temecula CFD 01-2 (Harveston)
Any notice or demand which by any provision of this Agreement is required or
permitted to be given or served by tile Fiscal Agent or tile AutllOrity to or on tile Bond hlsurer
may be given or served by being deposited postage prepaid in a post office letter box addressed
(until anotller address is filed by tile Bond Insurer Witll tile Fiscal Agent and tile AutllOrity) as
follows:
[to come]
Section 9.07. State Revortinl! Reouirements. The following requirements shall apply to
tile Bonds, in addition to tllOse requirements wlder Section 5.17:
(A) Annual Revortin2;. Not later tl1an October 30 of each calendar year,
beginning with the October 30 first succeeding the date of the Bonds, and in each
calendar year tllereafter Wltil tile October 30 following tile final maturity of tile Bonds,
the Treasurer shall cause the following information to be supplied to CDIAC: (i) the
principal amount of each series of tile Bonds Outstmlding; (ii) tile balmlce in tile Senior
SubaccOlmt and in the Subordinate Subaccount of the Reserve Flmd; (iii) that there was
no capitalized interest fWlded for tile Bonds; (iv) tile number of parcels in tile District
which are delinquent in the payment of Special Taxes, the amOlmt of each delinquency,
tile lengtll of time delinquent mld when foreclosure was commenced for each
delinquent parcel; (v) the balance in the Improvement Flmd; and (vi) the assessed value
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of all parcels in tile District subject to tile levy of tile Special Taxes as shown in most
recent equalized roll. The annual reporting shall be made using such form or forms as
may be prescribed by CDIAC.
(B) Otller Reoortinl!.. If at any time tile Fiscal Agent fails to pay principal mld
interest due on any scheduled payment date for the Bonds, or if funds are withdrawn
from a subaccount of tile Reserve FWld to pay principal mld interest on tile Bonds, tile
Fiscal Agent shall notify the Treasurer of such failure or withdrawal in writing. The
Treasurer shall notify CDIAC mld tile Original Purchaser of such failure or witlldrawal
within 10 days of such failure or withdrawal.
(C) Soecial Tax Reoortin2;. The Treasurer shall file a report with the Authority
no later tl1an January 1, 2007, mld at least once a year tllereafter, which annual report
shall contain: (i) the amount of Special Taxes collected and expended with respect to the
District, (ii) tile amount of Bond proceeds collected and expended Witll respect to tile
District, and (iii) the status of the Project. It is acknowledged that the Special Tax Flmd
mld tile Special Tax Prepayments Account are tile accowlts into which Special Taxes
collected on the District will be deposited for purposes of Section 50075.1(c) of the
Califomia Govemment Code, and tile fWlds mld accowlts listed in Section 4.01 are tile
funds and accounts into which Bond proceeds will be deposited for purposes of Section
53410(c) of tile Califomia Govemment Code, mld tile annual report described in tile
preceding sentence is intended to satisfy the requirements of Sections 50075.1(d),
50075.3(d) mld 53411 of tile Califomia Govemment Code.
(D) Amendment. The reporting requirements of tllis Section 9.07 shall be
amended from time to time, without action by the Authority or the Fiscal Agent (i) with
respect to subparagraphs (A) and (B) above, to reflect mlY amendments to Section
53359.5(b) or Section 53359.5(c) of the Act, and (ii) with respect to subparagraph (C)
above, to reflect any amendments to Section 50075.1, 50075.3, 53410 or 53411 of tile
Califomia Govemment Code. Notwithstanding the foregoing, any such amendment
shall not, in itself, affect tile AutllOrity's obligations wlder tile Continuing Disclosure
Agreement. The Authority shall notify the Fiscal Agent in writing of any such
amendments which affect tile reporting obligations of tile Fiscal Agent wlder tllis
Agreement.
(E) No Liabilitv. None of the Authority and its officers, agents and employees,
tile Treasurer or tile Fiscal Agent shall be liable for mlY inadvertent error in reporting
the information required by this Section 9.07.
The Treasurer shall provide copies of any of such reports to any Bondowner upon the
written request of a Bondowner mld payment by tile person requesting tile information of tile
cost of the Authority to produce such information and pay any postage or other delivery cost to
provide tile same, as determined by tile Treasurer. The term "Bond owner" for purposes of tllis
Section 9.07 shall include any beneficial owner of the Bonds.
Section 9.08. Partial mvaliditv. If any Section, paragraph, sentence, clause or phrase of
tllis Agreement shall for mlY reason be held illegal or wlenforceable, such holding shall not
affect the validity of the remaining portions of this Agreement. The Authority hereby declares
-5h-
tllat it would have adopted tllis Agreement and each and every otller Section, paragraph,
sentence, clause or phrase hereof and authorized the issue of the Bonds pursuant thereto
irrespective of tile fact tllat anyone or more Sections, paragraphs, sentences, clauses, or phrases
of this Agreement may be held illegal, invalid or lmenforceable.
Section 9.09. Unclaimed Monevs. Anything contained herein to the contrary
notwitllstanding, mlY moneys held by tile Fiscal Agent in trust for tile payment mld discharge
of the principal of, and the interest and any premium on, the Bonds which remains lmclaimed
for two (2) years after tile date when tile payments of such principal, interest mld premium
have become payable, if such moneys was held by the Fiscal Agent at such date, shall be repaid
by tile Fiscal Agent to tile AutllOrity as its absolute property free from mlY trust, mld tile Fiscal
Agent shall thereupon be released and discharged with respect thereto and the Owners shall
look only to tile AutllOrity for tile payment of tile principal of, mld interest mld mlY premium
on, such Bonds.
Section 9.10. Avvlicable Law. This Agreement shall be govemed by and enforced in
accordmlce witll tile laws of tile State of Califomia applicable to contracts made and performed
in the State of Califomia.
Section 9.11. Conflict with Act. ill the event of a conflict between any provision of this
Agreement Witll mlY provision of tile Act as in effect on tile Closing Date, tile provision of tile
Act shall prevail over the conflicting provision of this Agreement.
Section 9.12. Conclusive Evidence of Rel!ularitv. Bonds issued pursuant to this
Agreement shall constitute conclusive evidence of tile regularity of all proceedings under tile
Act relative to their issuance and the levy of the Special Taxes.
Section 9.13. Pavment on Business Dav. ill any case where the date of the maturity of
interest or of principal (mld premium, if any) of tile Bonds or tile date fixed for redemption of
any Bonds or the date any action is to be taken pursuant to this Agreement is other than a
Business Day, tile payment of interest or principal (mld premium, if mlY) or tile action need not
be made on such date but may be made on the next succeeding day which is a Business Day
Witll tile same force mld effect as if made on tile date required and no interest shall accrue for
the period from and after such date.
Section 9.14. COlmtervarts. This Agreement may be executed in counterparts, each of
which shall be deemed an original.
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ARTICLE X
BOND INSURANCE PROVISIONS
Section 10.01. Pavment Procedure Pursumlt to tile Bond hlsurmlce Policv. As long as tile
Bond msurance Policy shall be in full force and effect, the Authority and the Fiscal Agent agree
to comply Witll tile following provisions:
(a) At least one (1) day prior to each Interest Payment Date, tile Fiscal Agent will
determine whether there will be sufficient moneys in the ftmds and accounts
maintained by tile Fiscal Agent under tllis Agreement to pay tile principal or interest
due on the Series 2006A Bonds on such mterest Payment Date. If the Fiscal Agent
determines tllat tllere will be insufficient moneys in such fWlds or accowlts, tile Fiscal
Agent shall so notify the Bond Insurer. Such notice shall specify the amount of the
mlticipated deficiency, tile Series 2006A Bonds to which such deficiency is applicable
and whether such Series 2006A Bonds will be deficient as to principal or interest, or
bOtll. If tile Fiscal Agent has not so notified tile Bond hlsurer at least one (1) day prior to
an mterest Payment Date, the Bond msurer will make payments of principal or interest
due on tile Series 2006A Bonds on or before tile first (1st) day next following tile date on
which the Bond msurer shall have received notice of nonpayment from the Fiscal
Agent.
(b) The Fiscal Agent shall, after giving notice to tile Bond hlsurer as provided in
(a) above, make available to the Bond msurer and, at the Bond Insurer's direction, to
The Bmlk of New York, in New York, New York, as insurmlce trustee for tile Bond
msurer or any successor insurance trustee (the "msurance Trustee"), the Registration
Books for tile Series 2006A Bonds and all records relating to tile fWlds and accounts
maintained by the Fiscal Agent lmder this Agreement.
(c) The Fiscal Agent shall provide the Bond msurer and the msurance Trustee
Witll a list of Owners of Series 2006A Bonds entitled to receive principal or interest
payments from the Bond msurer under the terms of the Bond msurance Policy, and
shall make arrmlgements witll tile hlsurance Fiscal Agent (i) to mail checks or drafts to
the Owners entitled to receive full or partial interest payments from the Bond msurer
mld (ii) to pay principal on tile Series 2006A Bonds surrendered to tile hlsurance Trustee
by the Owners entitled to receive full or partial principal payments from the Bond
hlsurer.
(d) The Fiscal Agent shall, at tile time it provides notice to tile Bond Insurer
pursuant to (a) above, notify Owners entitled to receive the payment of principal or
interest from tile Bond hlsurer (i) as to tile fact of such entitlement, (ii) tllat tile Bond
msurer will remit to them all or a part of the interest payments next coming due upon
proof of Owner entitlement to interest payments mld delivery to tile hlsurmlce Trustee,
in form satisfactory to the Insurance Trustee, of an appropriate assignment of the
Owner's right to payment, (iii) tllat should tlley be entitled to receive full payment of
principal from the Bond msurer, they must surrender their Bonds (along with an
appropriate instrument of assignment in form satisfactory to tile hlsurmlce Trustee to
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permit ownership of such Bonds to be registered in tile name of tile Bond hlsurer) for
payment to the msurance Trustee, and not the Fiscal Agent, and (iv) that should they be
entitled to receive partial payment of principal from tile Bond hlsurer, tlley must
surrender their Bonds for payment first to the Fiscal Agent who shall note on such
Bonds tile portion of tile principal paid by tile Fiscal Agent mld tllen, along Witll an
appropriate instrument of assignment in form satisfactory to the msurance Trustee, to
tile Insurmlce Trustee, which will tllen pay tile unpaid portion of principal.
(e) hl tile event tllat tile Fiscal Agent has notice tllat mlY payment of principal or
interest with respect to an msured Bond which has become Due for Payment (as such
term is defined in tile Bond Insurmlce Policy) mld which is made to a Owner by or on
behalf of the Authority has been deemed a preferential transfer and theretofore
recovered from its registered owner pursumlt to tile United States Bmlkruptcy Code by a
trustee in bankruptcy in accordance with the final, nonappealable order of a court
having competent jurisdiction, tile Fiscal Agent shall, at tile time tile Bond hlsurer is
notified, notify all Owners of Series 2006A Bonds that in the event that any Owner's
payment is so recovered, such Owner will be entitled to payment from tile Bond hlsurer
to the extent of such recovery if sufficient ftmds are not otherwise available, and the
Fiscal Agent shall fumish to tile Bond Insurer its records evidencing tile payments of
principal and interest on the Series 2006A Bonds which have been made by the Fiscal
Agent mld subsequently recovered from Owners mld tile dates on which such payments
were made.
(f) In addition to those rights granted the Bond Insurer lmder this Agreement,
tile Bond hlsurer shall, to tile extent it makes payment of principal or interest on tile
Series 2006A Bonds, become subrogated to the rights of the recipients of such payments
in accordance Witll tile terms of tile Bond hlsurance Policy, mld to evidence such
subrogation (i) in the case of subrogation as to claims for past due interest, the Fiscal
Agent shall note tile Bond hlsurer's rights as subrogee on tile Registration Books upon
receipt from the Bond msurer of proof of the payment of interest with respect thereto to
tile Owners, mld (ii) in tile case of subrogation as to claims for past due principal, tile
Fiscal Agent shall note the Bond Insurer's rights as subrogee on the Registration Books
upon surrender of tile Series 2006A Bonds by tile Owners tllereof togetller Witll proof of
the payment of principal thereof.
Section 10.02. Ril!hts of Bond Insurer.
(A) Notice of Events of Default. Immediately upon obtaining actual knowledge of the
occurrence of default by tile AutllOrity or tile District in tile performmlce of tlleir obligations
lmder this Agreement, the Fiscal Agent shall give notice of such default to the Bond msurer and
tile AutllOrity by telephone confirmed in writing.
(B) Consents of Bond hlsurer. Any provision of tllis Agreement expressly recognizing
or granting rights in or to the Bond msurer may not be amended in any manner which affects
tile rights of tile Bond hlsurer herewlder WitllOut tile prior written consent of tile Bond hlsurer.
The Bond msurer reserves the right to charge the Authority a fee for any consent or amendment
to tllis Agreement while tile Bond hlsurance Policy is outstmlding.
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Unless otllerwise provided in tllis Article X, tile Bond hlsurer's consent shall be required
in addition to the Owners' consent, when required, for the following purposes: (i) execution
mld delivery of any Supplemental Agreement, (ii) removal of tile Fiscal Agent mld selection
and appointment of any successor Fiscal Agent, and (iii) initiation or approval of any action not
described in (i) or (ii) above which requires tile Owners' consent.
Any reorganization or liquidation plan Witll respect to tile AutllOrity or tile District
must be acceptable to the Bond msurer. m the event of any reorganization or liquidation, the
Bond hlsurer shall have tile right to vote on behalf of all Owners who hold Series 2006A Bonds
absent a default by the Bond Insurer under the Bond msurance Policy.
(C) Ril!hts of Bond msurer Uvon Event of Default. Anything in this Agreement to the
contrary notwitllstmlding, upon tile occurrence and continuation of a default by tile AutllOrity
or the District in the performance of their obligations under this Agreement, the Bond Insurer
shall be entitled to control and direct tile enforcement of all rights mld remedies grmlted
hereunder to the Owners of the Series 2006A Bonds, or to the Fiscal Agent for the benefit of the
Owners of tile Series 2006A Bonds. The rights grmlted to tile Bond Insurer hereunder shall be
deemed terminated and shall not be exercisable by the Bond msurer during any period during
which tile Bond hlsurer shall be in default wlder tile Bond Insurmlce Policy.
To tile extent tllat tllis Agreement confers upon or gives or grants to tile Bond hlsurer
any right, remedy or claim lmder or by reason of this Agreement, the Bond msurer is hereby
explicitly recognized as being a tllird-party beneficiary herewlder mld may enforce any such
right remedy or claim conferred, given or granted herelmder.
(D) Other Notices to be Given to the Bond msurer. While the Bond Insurance Policy is
in effect, tile AutllOrity or tile Fiscal Agent, as appropriate, shall fumish to tile Bond hlsurer,
upon request, the following:
(i) a copy of any financial statement, audit and/or annual report of the
AutllOrity;
(ii) a copy of any notice to be given to tile Owners of tile Series 2006A Bonds
including, without limitation, notice of any redemption of or defeasance of Series 2006A
Bonds, and mlY certificate rendered pursumlt to tllis Agreement relating to tile security
for the Series 2006A Bonds;
(iii) a copy of any notice provided by the Authority lmder the Continuing
Disclosure Agreement; mld
(iv) such additional information tile Bond hlsurer may reasonably request.
Upon request of tile Bond Insurer, tile information described in clauses (i) mld (iii)
above shall be delivered at the Authority's expense to the attention of the Bond msurer's
Surveillance Department.
The Fiscal Agent shall notify tile Bond hlsurer of mlY failure of tile AutllOrity to provide
the Fiscal Agent any notices or certificates required herelmder.
-hll-
Notwithstanding any other provIsion of this Agreement, the Fiscal Agent shall
immediately notify tile Bond hlsurer (Witll a copy to tile AutllOrity) if at mlY time tllere is
insufficient moneys to make any payments of principal and/or interest on the Series 2006A
Bonds as required hereunder.
The AutllOrity will permit tile Bond Insurer to discuss tile affairs, finances mld accowlts
of the Authority directly related to the District or any information the Bond msurer may
reasonably request regarding tile security for tile Series 2006A Bonds Witll appropriate officers
of the Authority.
The Fiscal Agent will permit the Bond msurer to have access to and to make copies of all
books and records relating to tile Series 2006A Bonds at any reasonable time Witll reasonable
prior notice.
The Bond msurer shall have the right to direct an accOlmting of the ftmds of the District
at tile District's expense, mld tile AutllOrity's failure to comply Witll such direction witllin tllirty
(30) days after receipt of written notice of the direction from the Bond Insurer shall be deemed a
default herewlder; provided, however, tllat if compliance cannot occur witllin such period,
then such period will be extended so long as compliance is begun within such period and
diligently pursued, but only if such extension would not materially adversely affect tile
interests of any registered owner of the Series 2006A Bonds.
(E) Default bv Bond msurer. Fiscal Al!ent Notices. Notwithstanding anything in this
Agreement to tile contrary: (i) if tile Bond hlsurer has failed to make mlY payments wlder tile
Bond Insurance Policy, and such failure remains lmremedied, all rights accruing to the Bond
hlsurer herewlder Witll respect to tile giving of instructions, approvals or consents shall cease
to be in force and effect until such time as such failure to make such payments has been
remedied, and (ii) tile Fiscal Agent wldertakes no responsibility for delivering mlY notices to
the Bond msurer except as expressly provided herein and no act or omission of the Fiscal Agent
shall affect or impair in any manner tile enforceability of tile Bond hlsurance Policy.
-h1-
IN WITNESS WHEREOF, the Authority caused this Fiscal Agent Agreement to be
executed all as of September 1, 2006.
TEMECULA PUBLIC FINANCING
AUTHORITY, for and on behalf of
TEMECULA PUBLIC FINANCING
AUTHORITY COMMUNITY FACILITIES
DISTRICT NO. 01-2 (HARVESTON)
By:
Executive Director
U. S. BANK NATIONAL ASSOCIATION,
as Fiscal Agent
By:
Authorized Officer
20n09.0R:TRR16
-h2-
EXHIBIT A
FORM OF SERIES 2006A BOND
UNITED STATES OF AMERICA
STATE OF CALIFORNIA
COUNTY OF RIVERSIDE
No.
$
TEMECULA PUBLIC FINANCING AUTHORITY
COMMUNITY FACILITIES DISTRICT NO. 01-2
(HARVESTON)
2006 SPECIAL TAX REFUNDING BOND, SERIES A
INTEREST RATE
MATURITY DATE
September 1,
BOND DATE
September 1, 2006
CUSIP
REGISTERED OWNER:
PRINCIPAL AMOUNT:
DOLLARS
The Temecula Public Financing AutllOrity (tile "AutllOrity") for and on behalf of tile
Temecula Public Financing Authority Commlmity Facilities District No. 01-2 (Harveston) (the
"District"), for value received, hereby promises to pay solely from tile Special Tax (as
hereinafter defined) to be collected in the District or amOlmts in the ftmds and accOlmts held
wlder tile Agreement (as hereinafter defined), to tile registered owner named above, or
registered assigns, on the maturity date set forth above, unless redeemed prior thereto as
hereinafter provided, tile principal amowlt set fortll above, mld to pay interest on such
principal amount from the Bond Date set forth above, or from the most recent interest payment
date to which interest has been paid or duly provided for, semiannually on March 1 mld
September 1, commencing March 1, 2007, at the interest rate set forth above, lmtil the principal
amowlt hereof is paid or made available for payment. The principal of tllis Bond is payable to
the registered owner hereof in lawful money of the United States of America upon presentation
mld surrender of tllis Bond at tile Principal Office (as defined in tile Agreement referred to
below) of U.S. Bank National Association (the "Fiscal Agent"). Interest on this Bond shall be
paid by check of tile Fiscal Agent mailed on each interest payment date to tile registered owner
hereof as of the close of business on the 15th day of the month preceding the month in which
tile interest payment date occurs (tile "Record Date") at such registered owner's address as it
appears on the registration books maintained by the Fiscal Agent, or (i) if the Bonds are in
book-en try-only form, or (ii) otllerwise upon written request filed Witll tile Fiscal Agent prior to
any Record Date by a registered owner of at least $1,000,000 in aggregate principal amount of
Bonds, by wire trmlsfer in immediately available fWlds to tile depository for tile Bonds or to an
account in the United States designated by such registered owner in such written request,
respectively.
A-I
This Bond is one of a duly autllOrized issue of bonds approved by tile qualified electors
of the District pursuant to the Mello-Roos Community Facilities Act of 1982, as amended,
Sections 53311, ct scq., of tile Califomia Govemment Code (tile "Mello-Roos Act") for tile
purpose of reftmding the Authority's outstanding Temecula Public Financing Authority
Community Facilities District No. 01-2 (Harveston) Special Tax Bonds, and is one of tile series
of such bonds designated "Temecula Public Financing Authority Community Facilities District
No. 01-2 (Harveston) 2006 Special Tax Refwlding Bonds, Series A" (tile "Senior Bonds") in tile
aggregate principal amOlmt of $ . Concurrently herewith, the Authority is issuing an
additional series of Bonds designated "Temecula Public Financing AutllOrity Community
Facilities District No. 01-2 (Harveston) 2006 Special Tax Refunding Bonds, Subordinate Series
B" (tile "Subordinate Bonds," and togetller witll tile Senior Bonds, tile "Bonds") in tile
aggregate principal amount of $ . The creation of the Bonds and the terms and
conditions tllereof are provided for by resolution adopted by tile Board of Directors of tile
Authority on July 11, 2006 (the "Resolution"), and the Fiscal Agent Agreement, dated as of
September 1, 2006, between tile AutllOrity mld tile Fiscal Agent (tile "Agreement") mld tllis
reference incorporates the Resolution and the Agreement herein, and by acceptance hereof the
owner of tllis Bond assents to said terms and conditions. Pursumlt to mld as more particularly
provided in the Resolution and in the Agreement, additional bonds ("Parity Bonds") may be
issued by tile AutllOrity from time to time secured by a lien on funds held under tile Agreement
on a parity with the lien securing the Senior Bonds. The Resolution is adopted and the
Agreement is entered into under mld tllis Bond is issued wlder, mld all are to be construed in
accordance with, the laws of the State of Califomia.
Pursuant to the Mello-Roos Act, the Agreement and the Resolution, the principal of and
interest on tllis Bond are payable solely from tile m1l1ual special tax autllOrized under tile Mello-
Roos Act to be collected within the District (the "Special Tax") and certain ftmds held lmder the
Agreement. The Special Taxes collected by tile AutllOrity will be applied first to tile payment of
amOlmts due on the Senior Bonds and any Parity Bonds, and the replenishment of a subaccOlmt
in tile Reserve FWld established for tile Senior Bonds mld any Parity Bonds, prior to tile use of
such monies for payment of amounts due on the Subordinate Bonds or replenishment of the
subaccowlt in tile Reserve FWld established for tile Subordinate Bonds.
hlterest on tllis Bond shall be payable from tile interest payment date next preceding tile
date of authentication hereof, lmless (i) it is authenticated on an interest payment date, in
which event it shall bear interest from such date of autllentication, or (ii) it is autllenticated
prior to an interest payment date and after the close of business on the Record Date preceding
such interest payment date, in which event it shall bear interest from such interest payment
date, or (iii) it is authenticated prior to the Record Date preceding the first interest payment
date, in which event it shall bear interest from tile Bond Date set fortll above; provided,
however, that if at the time of authentication of this Bond, interest is in default hereon, this
Bond shall bear interest from tile interest payment date to which interest has previously been
paid or made available for payment hereon.
Any tax for the payment hereof shall be limited to the Special Tax, except to the extent
tllat provision for payment has been made by tile AutllOrity, as may be permitted by law. The
Bonds do not constitute obligations of the Authority for which the Authority is obligated to
levy or pledge, or has levied or pledged, general or special taxation otller tllml described
A-2
hereinabove. The City of Temecula has no liability or obligations whatsoever Witll respect to
the Bonds or the Agreement.
The Senior Bonds maturing on or after September 1, __ are subject to redemption
prior to tlleir stated maturity on any interest payment date occurring on or after September 1,
__, as a whole or in part among maturities as provided in the Agreement, at a redemption
price (expressed as a percentage of tile principal amount of tile Senior Bonds to be redeemed),
as set forth below, together with accrued interest thereon to the date fixed for redemption:
Redemvtion Dates
September 1, __ and March 1,__
September 1, mld March 1,
September 1, __ and any interest payment
date tllereafter
Redemvtion Prices
1020/u
101
100
The Senior Bonds maturing on September 1, , are subject to mandatory sinking
payment redemption in part on September 1, __ and on each September 1 thereafter to
maturity, by lot, at a redemption price equal to tile principal amowlt tllereof to be redeemed,
together with accrued interest to the date fixed for redemption, without premium, from sinking
payments as follows:
Redemption Date
(Sentemher n
SinkinQ PClVmf'nts
The Senior Bonds maturing on September 1, __, are subject to mandatory sinking
payment redemption in part on September 1, and on each September 1 tllereafter to
maturity, by lot, at a redemption price equal to the principal amOlmt thereof to be redeemed,
togetller Witll accrued interest to tile date fixed for redemption, WitllOut premium, from sinking
payments as follows:
A-3
Redemption Date
(Sevtember 1 )
Sinkinl! Pavments
The Bonds are also subject to redemption from tile proceeds of Special Tax Prepayments
and any corresponding transfers from the subaccOlmts within the Reserve Fund pursuant to the
Agreement, on mlY hlterest Payment Date, among series mld maturities witllin a series as
specified in the Agreement and by lot within a maturity, at a redemption price (expressed as a
percentage at tile principal amount of tile Bonds to be redeemed), as set fortll below, togetller
with accrued interest to the date fixed for redemption:
Redemption Dates
mlY interest payment date from mld including
March 1, 2007 to and including March 1,
Redemption Prices
103%
September 1, __ and March 1,__
September 1, mld March 1,
September 1, __ and any interest payment
date tllereafter
102
101
100
Notice of redemption Witll respect to tile Bonds to be redeemed shall be given to tile
registered owners thereof, in the manner, to the extent and subject to the provisions of the
Agreement.
This Bond shall be registered in tile name of tile owner hereof, as to bOtll principal mld
interest.
Each registration and transfer of registration of this Bond shall be entered by the Fiscal
Agent in books kept by it for tllis purpose and autllenticated by its mmlUal signature upon tile
certificate of authentication endorsed hereon.
No transfer or exchange hereof shall be valid for any purpose unless made by the
registered owner, by execution of tile form of assignment endorsed hereon, and autllenticated
as herein provided, and the principal hereof, interest hereon and any redemption premium
shall be payable only to tile registered owner or to such owner's order. The Fiscal Agent shall
require the registered owner requesting transfer or exchange to pay any tax or other
govemmental charge required to be paid Witll respect to such trmlsfer or exchmlge. No transfer
or exchange hereof shall be required to be made (i) fifteen days prior to the date established by
tile Fiscal Agent for selection of Bonds for redemption, (ii) Witll respect to a Bond after such
Bond has been selected for redemption, or (iii) between a Record Date and the succeeding
A-4
interest payment date. Exchmlges may only be made for Bonds in autllOrized denominations,
as provided in the Agreement.
The Agreement and the rights and obligations of the Authority thereunder may be
modified or amended as set fortll tllerein.
The Agreement contains provisions permitting tile AutllOrity to make provision for tile
payment of the interest on, and the principal and premium, if any, of the Bonds so that such
Bonds shall no longer be deemed to be outstmlding under tile terms of tile Agreement.
The Bonds are not general obligations of tile AutllOrity, but are limited obligations
payable solely from the revenues and ftmds pledged therefor under the Agreement. Neither
tile faitll mld credit of tile AutllOrity or tile State of Califomia or mlY political subdivision
thereof is pledged to the payment of the Bonds.
This Bond shall not become valid or obligatory for any purpose lmtil the certificate of
autllentication and registration hereon endorsed shall have been dated and signed by tile Fiscal
Agent.
Unless this Bond is presented by an authorized representative of The Depository Trust
CompmlY to tile Fiscal Agent for registration of trmlsfer, exchmlge or payment, and any Bond
issued is registered in the name of Cede & Co. or such other name as requested by an
autllOrized representative of The Depository Trust CompmlY and any payment is made to Cede
& Co., ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE
BY OR TO ANY PERSON IS WRONGFUL since tile registered owner hereof, Cede & Co., has
an interest herein.
IT IS HEREBY CERTIFIED, RECITED AND DECLARED that all acts, conditions and
tllings required by law to exist, happen mld be performed precedent to and in tile issuance of
this Bond have existed, happened and been performed in due time, form and manner as
required by law, and tllat tile amount of tllis Bond does not exceed any debt limit prescribed by
the laws or Constitution of the State of Califomia.
A-5
IN WITNESS WHEREOF, Temecula Public Finmlcing AutllOrity has caused tllis Bond to
be dated the Bond Date set forth above, to be signed by the facsimile signature of its Executive
Director and countersigned by tile facsimile signature of its Secretary.
TEMECULA PUBLIC FINANCING
AUTHORITY
Executive Director
ATTEST
Secretary
A-h
FISCAL AGENT'S CERTIFICATE OF AUTHENTICATION
This is one of tile Senior Bonds described in tile Resolution and in tile Agreement which
has been authenticated on
u.s. Bmlk National Association, as Fiscal
Agent
By:
AutllOrized Signatory
A-7
ASSIGNMENT
For value received tile undersigned hereby sells, assigns mld transfers unto
(Name, Address and Tax Identification or Social Security Number of Assignee)
tile witllin-registered Bond and hereby irrevocably constitute(s) mld appoints(s)
attomey,
to trmlsfer tile same on tile registration books of tile Fiscal Agent Witll full power of substitution
in the premises.
Dated:
Signature Guaranteed:
Signature:
Note: Signature(s) must be guaranteed by an eligible
guarantor.
Note: The signature(s) on this Assigrunent must
correspond with the name(s) as written on
the face of the within Bond in every
particular without alteration or enlargement
or any change whatsoever.
A-8
STATEMENT OF INSURANCE
[insert here the Statement of msurance provided by the Bond Insurer]
A-9
EXHIBIT B
FORM OF SERIES 2006B BOND
UNITED STATES OF AMERICA
STATE OF CALIFORNIA
COUNTY OF RIVERSIDE
No.
$
TEMECULA PUBLIC FINANCING AUTHORITY
COMMUNITY FACILITIES DISTRICT NO. 01-2
(HARVESTON)
2006 SPECIAL TAX REFUNDING BOND, SUBORDINATE SERIES B
INTEREST RATE
MATURITY DATE
September 1,
BOND DATE
September 1, 2006
CUSIP
REGISTERED OWNER:
PRINCIPAL AMOUNT:
DOLLARS
The Temecula Public Financing AutllOrity (tile "AutllOrity") for and on behalf of tile
Temecula Public Financing Authority Commlmity Facilities District No. 01-2 (Harveston) (the
"District"), for value received, hereby promises to pay solely from tile Special Tax (as
hereinafter defined) to be collected in the District or amOlmts in the ftmds and accOlmts held
wlder tile Agreement (as hereinafter defined), to tile registered owner named above, or
registered assigns, on the maturity date set forth above, lmless redeemed prior thereto as
hereinafter provided, tile principal amowlt set fortll above, mld to pay interest on such
principal amount from the Bond Date set forth above, or from the most recent interest payment
date to which interest has been paid or duly provided for, semiannually on March 1 mld
September 1, commencing March 1, 2007, at the interest rate set forth above, lmtil the principal
amowlt hereof is paid or made available for payment. The principal of tllis Bond is payable to
the registered owner hereof in lawful money of the United States of America upon presentation
mld surrender of tllis Bond at tile Principal Office (as defined in tile Agreement referred to
below) of U.S. Bank National Association (the "Fiscal Agent"). Interest on this Bond shall be
paid by check of tile Fiscal Agent mailed on each interest payment date to tile registered owner
hereof as of the close of business on the 15th day of the month preceding the month in which
tile interest payment date occurs (tile "Record Date") at such registered owner's address as it
appears on the registration books maintained by the Fiscal Agent, or (i) if the Bonds are in
book-en try-only form, or (ii) otllerwise upon written request filed Witll tile Fiscal Agent prior to
any Record Date by a registered owner of at least $1,000,000 in aggregate principal amount of
Bonds, by wire trmlsfer in immediately available fWlds to tile depository for tile Bonds or to an
account in the United States designated by such registered owner in such written request,
respectively.
B-1
This Bond is one of a duly autllOrized issue of bonds approved by tile qualified electors
of the District pursuant to the Mello-Roos Community Facilities Act of 1982, as amended,
Sections 53311, et seq., of tile Califomia Govemment Code (tile "Mello-Roos Act") for tile
purpose of reftmding the Authority's outstanding Temecula Public Financing Authority
Community Facilities District No. 01-2 (Harveston) Special Tax Bonds, and is one of tile series
of such bonds designated "Temecula Public Financing Authority Community Facilities District
No. 01-2 (Harveston) 2006 Special Tax Refunding Bonds, Subordinate Series B" (tile
"Subordinate Bonds") in the aggregate principal amOlmt of $ Concurrently
herewitll, tile AutllOrity is issuing ml additional series of Bonds designated "Temecula Public
Financing Authority Commlmity Facilities District No. 01-2 (Harveston) 2006 Special Tax
Refunding Bonds, Series A" (tile "Senior Bonds," mld togetller witll tile Subordinate Bonds, tile
"Bonds") in the aggregate principal amOlmt of $ . The creation of the Bonds and the
terms and conditions tllereof are provided for by resolution adopted by tile Board of Directors
of the Authority on July 11, 2006 (the "Resolution"), and the Fiscal Agent Agreement, dated as
of September 1, 2006, between tile AutllOrity mld tile Fiscal Agent (tile "Agreement") mld tllis
reference incorporates the Resolution and the Agreement herein, and by acceptance hereof the
owner of tllis Bond assents to said terms and conditions. Pursuant to and as more particularly
provided in the Resolution and in the Agreement, additional bonds ("Parity Bonds") may be
issued by tile AutllOrity from time to time secured by a lien on funds held wlder tile Agreement
on a parity with the lien securing the Senior Bonds. The Resolution is adopted and the
Agreement is entered into under mld tllis Bond is issued wlder, mld all are to be construed in
accordance with, the laws of the State of Califomia.
Pursuant to the Mello-Roos Act, the Agreement and the Resolution, the principal of and
interest on tllis Bond are payable solely from tile m1l1ual special tax autllOrized under tile Mello-
Roos Act to be collected within the District (the "Special Tax") and certain ftmds held lmder the
Agreement. The Special Taxes collected by tile AutllOrity will be applied first to tile payment of
amOlmts due on the Senior Bonds and any Parity Bonds, and the replenishment of a subaccOlmt
in tile Reserve FWld established for tile Senior Bonds mld mlY Parity Bonds, prior to tile use of
such monies for payment of amounts due on the Subordinate Bonds or replenishment of the
subaccowlt in tile Reserve FWld established for tile Subordinate Bonds.
hlterest on tllis Bond shall be payable from tile interest payment date next preceding tile
date of authentication hereof, lmless (i) it is authenticated on an interest payment date, in
which event it shall bear interest from such date of autllentication, or (ii) it is autllenticated
prior to an interest payment date and after the close of business on the Record Date preceding
such interest payment date, in which event it shall bear interest from such interest payment
date, or (iii) it is authenticated prior to the Record Date preceding the first interest payment
date, in which event it shall bear interest from tile Bond Date set fortll above; provided,
however, that if at the time of authentication of this Bond, interest is in default hereon, this
Bond shall bear interest from tile interest payment date to which interest has previously been
paid or made available for payment hereon.
Any tax for the payment hereof shall be limited to the Special Tax, except to the extent
tllat provision for payment has been made by tile AutllOrity, as may be permitted by law. The
Bonds do not constitute obligations of the Authority for which the Authority is obligated to
levy or pledge, or has levied or pledged, general or special taxation otller tllml described
B-2
hereinabove. The City of Temecula has no liability or obligations whatsoever Witll respect to
the Bonds or the Agreement.
The Subordinate Bonds are subject to redemption prior to their stated maturity on any
interest payment date as a whole or in part among maturities as provided in tile Agreement, at
a redemption price (expressed as a percentage of the principal amount of the Subordinate
Bonds to be redeemed), as set fortll below, togetller Witll accrued interest tllereon to tile date
fixed for redemption:
Redemption Dates
any interest payment date from and including
March 1,2007 to mld including March 1,
September 1, __ and March 1,__
September 1, mld March 1,
September 1, __ and any interest payment
date tllereafter
Redemption Prices
103%
102
101
100
The Subordinate Bonds maturing on September 1, , are subject to mmldatory
sinking payment redemption in part on September 1, __ and on each September 1 thereafter
to maturity, by lot, at a redemption price equal to tile principal amowlt tllereof to be redeemed,
together with accrued interest to the date fixed for redemption, without premium, from sinking
payments as follows:
Redemption Date
(Seotemher n
SinkinQ PClVmf'nts
The Subordinate Bonds maturing on September 1, __, are subject to mandatory
sinking payment redemption in part on September 1, mld on each September 1 tllereafter
to maturity, by lot, at a redemption price equal to the principal amOlmt thereof to be redeemed,
togetller Witll accrued interest to tile date fixed for redemption, WitllOut premium, from sinking
payments as follows:
B-3
Redemption Date
(Sevtember 1 )
Sinkinl! Pavments
The Bonds are also subject to redemption from tile proceeds of Special Tax Prepayments
and any corresponding transfers from the subaccOlmts within the Reserve Fund pursuant to the
Agreement, on mlY hlterest Payment Date, among series mld maturities witllin a series as
specified in the Agreement and by lot within a maturity, at a redemption price (expressed as a
percentage at tile principal amount of tile Bonds to be redeemed), as set fortll below, togetller
with accrued interest to the date fixed for redemption:
Redemption Dates
mlY interest payment date from mld including
March 1, 2007 to and including March 1,
Redemption Prices
103%
September 1, __ and March 1,__
September 1, mld March 1,
September 1, __ and any interest payment
date tllereafter
102
101
100
Notice of redemption Witll respect to tile Bonds to be redeemed shall be given to tile
registered owners thereof, in the manner, to the extent and subject to the provisions of the
Agreement.
This Bond shall be registered in tile name of tile owner hereof, as to bOtll principal mld
interest.
Each registration and transfer of registration of this Bond shall be entered by the Fiscal
Agent in books kept by it for tllis purpose mld autllenticated by its mmlUal signature upon tile
certificate of authentication endorsed hereon.
No transfer or exchange hereof shall be valid for any purpose unless made by the
registered owner, by execution of tile form of assignment endorsed hereon, mld autllenticated
as herein provided, and the principal hereof, interest hereon and any redemption premium
shall be payable only to tile registered owner or to such owner's order. The Fiscal Agent shall
require the registered owner requesting transfer or exchange to pay any tax or other
govemmental charge required to be paid Witll respect to such trmlsfer or exchmlge. No transfer
or exchange hereof shall be required to be made (i) fifteen days prior to the date established by
tile Fiscal Agent for selection of Bonds for redemption, (ii) Witll respect to a Bond after such
Bond has been selected for redemption, or (iii) between a Record Date and the succeeding
B-4
interest payment date. Exchmlges may only be made for Bonds in autllOrized denominations,
as provided in the Agreement.
The Agreement and the rights and obligations of the Authority thereunder may be
modified or amended as set fortll tllerein.
The Agreement contains provisions permitting tile AutllOrity to make provision for tile
payment of the interest on, and the principal and premium, if any, of the Bonds so that such
Bonds shall no longer be deemed to be outstmlding under tile terms of tile Agreement.
The Bonds are not general obligations of tile AutllOrity, but are limited obligations
payable solely from the revenues and ftmds pledged therefor under the Agreement. Neither
tile faitll mld credit of tile AutllOrity or tile State of Califomia or mlY political subdivision
thereof is pledged to the payment of the Bonds.
This Bond shall not become valid or obligatory for any purpose lmtil the certificate of
autllentication and registration hereon endorsed shall have been dated and signed by tile Fiscal
Agent.
Unless this Bond is presented by an authorized representative of The Depository Trust
CompmlY to tile Fiscal Agent for registration of trmlsfer, exchmlge or payment, mld mlY Bond
issued is registered in the name of Cede & Co. or such other name as requested by an
autllOrized representative of The Depository Trust CompmlY and any payment is made to Cede
& Co., ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE
BY OR TO ANY PERSON IS WRONGFUL since tile registered owner hereof, Cede & Co., has
an interest herein.
IT IS HEREBY CERTIFIED, RECITED AND DECLARED that all acts, conditions and
tllings required by law to exist, happen mld be performed precedent to and in tile issuance of
this Bond have existed, happened and been performed in due time, form and manner as
required by law, and tllat tile amount of tllis Bond does not exceed any debt limit prescribed by
the laws or Constitution of the State of Califomia.
B-5
IN WITNESS WHEREOF, Temecula Public Finmlcing AutllOrity has caused tllis Bond to
be dated the Bond Date set forth above, to be signed by the facsimile signature of its Executive
Director and countersigned by tile facsimile signature of its Secretary.
TEMECULA PUBLIC FINANCING
AUTHORITY
Executive Director
ATTEST
Secretary
B-h
FISCAL AGENT'S CERTIFICATE OF AUTHENTICATION
This is one of the Subordinate Bonds described in the Resolution mld in the Agreement
which has been authenticated on
u.s. Bmlk National Association, as Fiscal
Agent
By:
AutllOrized Signatory
B-7
ASSIGNMENT
For value received tile undersigned hereby sells, assigns mld transfers unto
(Name, Address and Tax Identification or Social Security Number of Assignee)
tile witllin-registered Bond and hereby irrevocably constitute(s) mld appoints(s)
attomey,
to trmlsfer tile same on tile registration books of tile Fiscal Agent Witll full power of substitution
in the premises.
Dated:
Signature Guaranteed:
Signature:
Note: Signature(s) must be guaranteed by an eligible
guarantor.
Note: The signature(s) on this Assigrunent must
correspond with the name(s) as written on
the face of the within Bond in every
particular without alteration or enlargement
or any change whatsoever.
B-8
TEMECULA PUBLIC FINANCING AUTHORITY
COMMUNITY FACILITIES DISTRICT NO. 01-2
(HARVESTON)
2006 SPECIAL TAX REFUNDING BONDS, SERIES A
2006 SPECIAL TAX REFUNDING BOND, SUBORDINATE SERIES B
BOND PURCHASE AGREEMENT
TEMECULA PUBLIC FINANCING AUTHORITY
COMMUNITY FACILITIES DISTRICT NO. 01-2 (HARVEST ON)
$ 2006 SPECIAL TA,X REFUNDING BONDS, SERIES A AND
$ 2006 SPECIAL TA,X REFUNDING BONDS, SUBORDINATE SERIES B
BOND PURCHASE AGREEMENT
,2006
Temecula Public Financing Authority
43200 Business Park Drive
Temecula, California 92590
Ladies and Gentlemen:
Stone & Youngberg LLC (the "Underwriter") offers to enter into this Bond Purchase
Agreement (the "Bond Purchase Agreement") with the Temecula Public Financing Authority (the
"Authority") for and on behalf of Temecula Public Financing Authority Community Facilities District
No. 01-2 (Harveston) (the "District") which, upon acceptance, will be binding upon the Authority and upon
the Underwriter. This offer is made subject to acceptance of it by the Authority on the date hereof, and if
not accepted will be subject to withdrawal by the Underwriter upon notice delivered to the Authority at any
time prior to the acceptance hereof by the Authority.
1. Pllr('.h:l"~ S:ll~ :mr1l)~livffV ()fth~ "Ronrh:
(a) Subject to the terms and conditions and in reliance upon the representations,
warranties and agreements set forth herein, the Underwriter agrees to purchase from the Authority, and the
Authority agrees to sell to the Underwriter, all (but not less than all) of the Temecula Public Financing
Authority Community Facilities District No. 01-2 (Harveston) 2006 Special Tax Refunding Bonds, Series
A (the "Series A Bonds"), in the aggregate principal amount of $ and its 2006 Special Tax
Refunding Bonds, Subordinate Series B (the "Series B Bonds," collectively the "2006 Bonds") in the
aggregate principal amount of $ . The 2006 Bonds are dated their date of delivery, and bear
interest at the rates set forth in Exhibit A hereto (payable on each March 1 and September 1 of each year,
commencing March 1,2007) and mature on September 1, 2036. The purchase price for the 2006 Bonds shall
be as set forth in Exhibit A hereto. The payment of principal of and interest (but not any redemption
premium) on the Series A Bonds will be secured by a municipal bond insurance policy (the "Insurance
Policy") to be issued simultaneously with the issuance of the Series A Bonds by (the
"Insurer")
The 2006 Bonds shall be substantially in the form described in, shall be issued and secured
under the provisions of, and shall be payable and subject to redemption as provided in, the Fiscal Agent
Agreement, by and between the Authority and U.S. BankNational Association, as fiscal agent (the "Fiscal
Agent"), dated as of September 1, 2006 (the "Fiscal Agent Agreement"). The 2006 Bonds and interest
thereon will be payable from a special tax (the "Special Tax") levied and collected in accordance with the
Fiscal Agent Agreement and Ordinance No. TPFA-02-01 (the 'Xlrdinance") adopted by the Board of
Directors ofthe Authority(the "Board") on April 9, 2002, pursuant to the Mello-Roos Community Facilities
Act of 1982, as amended (Sections 53311 et seq. of the Government Code of the State of California) (the
"Act"). The proceeds of the 2006 Bonds shall be applied (i) to refund on September 1, 2006, the outstanding
Temecula Public FinancingAuthority Community Facilities District No. 0 1-2(Harveston) converted Special
Tax Bonds, 2002 Series A (the "Refunding Bonds"), (ii) to pay the costs of issuing the 2006 Bonds and (iii)
to establish a Senior Subaccount within theReserve Fund for the Series ABonds and acquire a reserve surety
for the Series A Bonds in satisfaction of the Reserve Requirement for the Series A Bonds, and (iv) to
establish a Subordinate Subaccount within the Reserve Fund for the Series B Bonds in satisfaction of the
Reserve Requirement for the Series B Bonds.
(b) Pursuantto the authorization of the Authority, the Underwriter has distributed copies
of the Preliminary Official Statement, dated ,2006, relating to the 2006 Bonds, which, together
with the cover page and all appendices thereto, is herein called the "Preliminary Official Statement" and
which, as amended by the Authority with the prior approval of the Underwriter, will be referred to herein
as the "Official Statement." The Authority hereby ratifies the use by the Underwriter of the Preliminary
Official Statement and authorizes the Underwriter to use and distribute the Official Statement, the Fiscal
Agent Agreement, the other documents or contracts to which the Authority is a party, including this Bond
Purchase Agreement, relating to the 2006 Bonds, and all information contained therein, and all other
documents, certificates and statements furnished by the Authority to the Underwriter in connection with the
transactions contemplated by this Bond Purchase Agreement, in connection with the offer and sale of the
2006 Bonds by the Underwriter.
(c) At 8:00 A.M., Los Angeles time, on September 1,2006, or at such othertirne or on
such earlier or later business day as shall be agreed upon by the Underwriter and the Authority (such time
and date being herein referred to as the "Closing Date"), the Authority will deliver to the Underwriter (i) at
the offices of The Depository Trust Company, in New York, New York, the 2006 Bonds in temporary or
definitive form, bearing CUSIP@ numbers, and duly executed by the officers of the Authority and
authenticated by the Fiscal Agent as provided in the Fiscal Agent Agreement, and (ii) at the offices of()uint
& Thimmig LLP, in San Francisco, California, the other documents herein mentioned; and the Underwriter
shall accept such delivery and pay the purchase price of the 2006 Bonds as set forth in Section l(a) hereof
by wire transfer of immediately available funds. The date of this payment and delivery, together with the
delivery of the aforementioned documents, is herein called the "Closing." Notwithstanding the foregoing,
the Underwriter may, in its discretion, accept delivery of the 2006 Bonds in temporary form upon making
arrangements with the Authority which are satisfactory to the Underwriter relating to the delivery of the 2006
Bonds in definitive form. The 2006 Bonds shall be in fully registered form, registered in the name of CEDE
& Co., as nominee of The Depository Trust Company. The failure to print CUSIP@ identification numbers
on any of the 2006 Bonds or any error with respect thereto shall not constitute cause for a failure or refusal
of the Underwriter to accept delivery of, or pay for, the 2006 Bonds in accordance with the terms of this
Bond Purchase Agreement.
(d) The Underwriter agrees to offer all the 2006 Bonds to the public initially at the
prices set forth in Exhibit A hereto. Subsequent to the initial public offering of the 2006 Bonds, the
Underwriter reserves the right to change the public offering prices (or yields) as it deems necessary in
connection with the marketing of the 2006 Bonds. The 2006 Bonds may be offered and sold to certain
dealers at prices lower than such initial public offering prices.
2. Renre~entatlnmL W3tT3ntle~ and Aoreemenh: of the Allthnrltv. The Authority
represents, warrants and covenants to and agrees with the Underwriter that:
(a) The District is duly organized and validly existing as a community facilities district
under the laws of the State of California (the "State") and the Authority has, and at the Closing Date will
have, as the case may be, full legal right, power and authority for and on behalf of the District (i) to adopt
the Procedural Resolutions (as defined below) and the (lrdinance, (ii) to execute and deliver the 2006 Bonds
2
and the District Documents (as defined below) and to perform its obligations under the 2006 Bonds and the
District Documents, (iii) to issue, sell and deliver the 2006 Bonds to the Underwriter pursuant to the
Procedural Resolutions and the Fiscal Agent Agreement as provided herein, and (iv) to carry out, give effect
to and consummate the transactions on its part contemplated by the Procedural Resolutions, the Official
Statement, the 2006 Bonds and the District Documents. For purposes of this Bond Purchase Agreement,
Resolution No. TPFA 01-07 adopted by the Board on December 11,2001 stating the intention to establish
the District, Resolution No. TPFA 01-08 adopted by the Board on December 11,2001 stating the intention
to incur bonded indebtedness, Resolution No. TPF A 02-03 adopted by the Board on March 26, 2002
establishing the District and authorizing the levy of the Special Tax within the District, Resolution No. TPF A
02-04 adopted by the Board on March 26, 2002 declaring the necessity to incur bonded indebtedness,
Resolution No. TPF A 02-05 adopted by the Board on March 26, 2002 calling for a special election in the
District, Resolution No. TPF A 02-06 adopted by the Board on March 26, 2002 declaring the results of the
election, and Resolution No. [TPF A 06- ] adopted by the Board on [ ,2006] authorizing the
issuance of the 2006 Bonds are referred to as the "Procedural Resolutions" and the Fiscal Agent Agreement,
the Bond Purchase Agreement, the District Continuing Disclosure Agreement (the "District Continuing
Disclosure Agreement"), dated as of September 1, 2006, by and between the Authority for and on behalf of
the District and U.S. Bank National Association, as dissemination agent (the "Dissemination Agent"), the
Acquisition Agreement dated August 1, 2002, as supplemented by Supplement No.1 dated November 25,
2003 (collectively, the "Acquisition Agreement"), by and between the Authority and Harveston, LLC, a
Delaware limited liability company (''Harveston, LLC"), the Joint Community Facilities Agreement (the
"City Joint Community Facilities Agreement"), dated as of March 5, 2002, by and between the Authority and
the City of Temecula (the "City"), and the Joint Community Facilities Agreement (the "Caltrans Joint
Community Facilities Agreement"), dated as of June 1, 2002, by and between the Authority and the State
of California Department of Transportation ("Caltrans"), (the District Continuing Disclosure Agreement,
the Acquisition Agreement, the City Joint Community Facilities Agreement and the Caltrans Joint
Community Facilities Agreement are referred to herein as the "District Documents);"
(b) The Authority has complied, and will at the Closing Date be in compliance, in all
respects material to issuance and delivery of the 2006 Bonds, with the 2006 Bonds, the DistrictDocuments
and the Act and the Authority will continue to comply with the covenants of the Authority contained in the
2006 Bonds and the District Documents;
(c) The Board for and on behalf of the District has duly and validly: (i) adopted the
Procedural Resolutions and the Ordinance, (ii) called, held and conducted in accordance with all
requirements of the Act an election to approve the levy of the Special Tax, (iii) authorized the preparation
and delivery of the Preliminary Official Statement and the Official Statement, (iv) authorized and approved
the execution and delivery of the 2006 Bonds and the District Documents; and (v) authorized and approved
the performance by the Authority of its obligations contained in, and the taking of any and all action on its
part as may be necessary to carry out, give effect to and consummate the transactions on its part contemplated
by, each of said documents (including, without limitation, the levy and collection of the Special Tax and the
use of the proceeds of the 2002 Bonds to acquire public improvements), and at the Closing Date the 2006
Bonds and the District Documents have been, or on or before the Closing Date, will be duly executed and
delivered by the Authority and on the Closing Date, the 2006 Bonds and the District Documents will
constitute the valid, legal and binding obligations of the Authority on behalf of the District, and (assuming
due authorization, execution and delivery by other parties thereto, where necessary of the other parties
thereto) will be enforceable in accordance with their respective terms, subject to bankruptcy, insolvency,
reorganization, moratorium and other laws affecting the enforcement of creditors' rights in general and to
the application of equitable principles if equitable remedies are sought;
3
(d) The Authority is not in breach of or default under any applicable law or
administrative rule or regulation of the State or the United States of America, or of any department, division,
agency or instrumentality of either thereof, or under any applicable court or administrative decree or order,
orunder any loan agreement, note, resolution, indenture, fiscal agent agreement, contract, agreement or other
instrumentto which the Authority is a party or is otherwise subject or bound, a consequence of which could
be to materially and adversely affect the performance by the Authority of its obligations under the Procedural
Resolutions, the Ordinance, the 2006 Bonds or the District Documents and compliance with the provisions
of each thereof, will not conflict with or constitute a breach of or default under any applicable law or
administrative rule or regulation of the State, or of any department, division, agency or instrumentality
thereof, or under any applicable court or administrative decree or order, or under any loan agreement, note,
resolution, indenture, fiscal agent agreement, contract, agreement or other instrument to which the Authority
is a party or is otherwise subject or bound a consequence of which could be to materially and adversely affect
the ability of the Authority to perform its obligations under the 2006 Bonds or any District Documents;
(e) The adoption of the Procedural Resolutions and the Ordinance, and the execution
and delivery by the Authority of the 2006 Bonds, the Official Statement and the District Documents and
compliance by the Authority with the provisions thereof, did not and will not conflict with or constitute a
breach of or default under any applicable law or administrative rule or regulation of the State or the United
States of America, or of any deparbnent, division, agency or instrumentality of either thereof, or under any
applicable court or administrative decree or order, or under any loan agreement, note, resolution, indenture,
fiscal agent agreement, contract, agreement or other instrument to which the Authority is a party or is
otherwise subject or bound, a consequence of which could be to materially and adversely affect the ability
of the Authority to perform its obligations under the 2006 Bonds or any of the District Documents;
(f) Ail approvals, consents, authorizations, elections and orders of or filings or
registrations with any State governmental authority, board, agency or commission having jurisdiction which
would constitute a condition precedent to, or the absence of which would materially adversely affect, the
ability of the Authority to execute and deliver and perform its obligations under the 2006 Bonds or the
DistrictDocuments have been or will be obtained and are in full force and effect, except that the Authority
provides no representation regarding compliance with "Blue SkY''' or other securities laws or regulations
whatsoever;
(g) The 2006 Bonds, the Procedural Resolutions, the Ordinance and the District
Documents conform as to form and tenor to the descriptions thereof contained in the Preliminary Official
Statement, and which will be contained in the Official Statement as of the Closing Date, and when delivered
to and paid for by the Underwriter on the Closing Date as provided herein, the 2006 Bonds will be validly
issued and outstanding;
(h) The Special Tax constituting the security for the 2006 Bonds has been duly and
lawfully authorized and may be levied under the Act and the Constitution and the applicable laws of the
State, and such Special Tax, when levied, will constitute a valid lien on the properties on which it has been
levied;
(i) Except as described in the Official Statement under the captions "THE
C( lMMUNITY FACILITIES DISTRICT - Property (lwnership" "- Direct and (lverlapping Debt," " -
(lverlapping Community Facilities and Assessment Districts" and " - Other (lverlapping Direct
Assessments," there are no outstanding assessment liens or special tax liens levied by the Authority for itself
or on behalf of any community facilities district or assessment district against any of the properties within
the District which are senior to the Special Tax lien referred to in paragraph l(a) hereof, and the Authority
4
has no present intention of conducting further proceedings leading to the levying of additional special taxes
or assessments against any of the properties within the District;
(j) As of the date thereof, the Preliminary Official Statement did not contain anyuntrue
statement of a material fact or omit to state a material fact required to be stated therein or necessary in order
to make the statements therein, in the light of the circumstances under which they were made, not misleading;
the Official Statement does not and, as of the Closing Date, will not contain any untrue or misleading
statement of a material fact or omit to state any material fact required to be stated therein or necessary to
make the statements therein, in the light of the circumstances under which they were made, not misleading;
(k) After the Closing Date and until the date which is twenty-five (25) days after the
underwriting period (as defined below) (i) the Authority will not adopt any amendment of or supplementto
the Official Statement to which the Underwriter shall object in writing or which shall be disapproved by
counsel for the Underwriter, and (ii) if any event shall occur of which the Authority is aware, as a result of
which it is necessary, in the reasonable opinion of counsel for the Underwriter, to amend or supplement the
Official Statement in order to make the Official Statement not misleading in the light of the circumstances
existing at the time it is delivered to an initial purchaser of the 2006 Bonds, the Authority will forthwith
prepare and furnish to the Underwriter a reasonable number of copies of an amendment of or supplement to
the ()fficial Statement (in form and substance satisfactory to counsel for the Underwriter) which will amend
or supplement the ()fficial Statement so that it will not contain an untrue statement of a material fact or omit
to state a material fact required to be stated therein or necessary in order to make the statements therein, in
the light ofthe circumstances existing at the time the ()fficial Statement is delivered to an initial purchaser
of the 2006 Bonds, not misleading. The costs of preparing any necessary amendment or supplement to the
()fficial Statement shall be borne by the District. The term "end of the underwriting period" means the later
of such time as (i) the Authority delivers the 2006 Bonds to the Underwriter or (ii) the Underwriter does not
retain an unsold balance of the 2006 Bonds for sale to the public. Unless the Underwriter gives notice to the
contrary, the "end of the underwriting period" shall be deemed to be the Closing Date. Any notice delivered
pursuant to this provision shall be written notice delivered to the Authority at or prior to the Closing Date,
and shall specify a date (other than the Closing Date) to be deemed the "end of the underwriting period;"
(I) The Fiscal Agent Agreement creates a valid pledge of the Special Tax Revenues (as
defined in the Fiscal Agent Agreement) and any other amounts (including proceeds of the sale of the 2006
Bonds) held in the Bond Fund (as defined in the Fiscal Agent Agreement) and the Special Tax Fund (as
defined in the Fiscal Agent Agreement) established pursuant to the Fiscal Agent Agreement, subject in all
cases to the provisions of the Fiscal Agent Agreementpermitting the application thereoffor the purposes and
on the terms and conditions set forth therein;
(m) No action, suit, proceeding, inquiry or investigation, at law or in equity, before or
by any court, regulatory agency, public board or body is pending againstthe Authority with respect to which
the Authority has been served with process, or to the knowledge of the Authority threatened, affecting the
existence of the Authority or the District or the titles of its officers to their respective offices (i) which would
materially adversely affect the ability of the Authority to perform its obligations under the 2006 Bonds or
the District Documents, or (ii) seeking to restrain or to enjoin the development ofthe land within the District,
the issuance, sale or delivery of the 2006 Bonds, the application of the proceeds thereof in accordance with
the Fiscal Agent Agreement, or the collection or application ofthe Special Tax pledged or to be pledged to
pay the principal of and interest on the 2006 Bonds, or the pledge thereof, or in any way contesting or
affecting the validity or enforceability of the 2006 Bonds, the District Documents, any other instruments
relating to the development of any of the property within the District, or any action of the Authority
contemplated by any of said documents, or (iii) in any way contesting the completeness or accuracy of the
5
Preliminary Official Statement or the Official Statement or the powers or authority of the Authority with
respect to the Procedural Resolutions, the Ordinance, the 2006 Bonds or the District Documents, or any
action of the Authority contemplated by any of said documents; or (iv) which alleges that interest on the 2006
Bonds is not excludable from gross income for federal income tax purposes or is not exempt from State
personal income taxation, nor to the knowledge of the Authority is there any basis therefor;
(n) The Authority will furnish such information, execute such instruments and take such
other action in cooperation with the Underwriter as the Underwriter may reasonably request in order for the
Underwriter to qualify the 2006 Bonds for offer and sale under the "Blue SkY''' or other securities laws and
regulations of such states and other jurisdictions of the United States as the Underwriter may desiguate;
provided, however, the Authority shall not be required to register as a dealer or a broker of securities nor
shall the Authority be required to consent to service of process or jurisdiction or qualify to do business in
any jurisdiction or to expend funds for this purpose;
(0) Any certificate sigued by any official of the Authority authorized to do so and
delivered by the Authority at the Closing shall be deemed a certification to the Underwriter by the Authority
as to the statements made therein;
(p) During the period from the date hereof until the Closing Date, the Authority agrees
to furnish the Underwriter with copies of any documents it files with any regulatory authority which are
requested by the Underwriter;
(q) The Authority is not in default, nor has the Authority been in default at any time,
as to the payment of principal or interest with respect to an obligation issued by the Authority or with respect
to an obligation guaranteed by the Authority as guarantor;
(r) The Authority will apply the proceeds from the sale of the 2006 Bonds as set forth
in and for the purposes specified in the Fiscal Agent Agreement;
(s) The Authority will undertake, pursuant to the Fiscal Agent Agreement and the
District Continuing Disclosure Agreement to provide certain annual financial information and information
about the District, together with notices of the occurrence of certain events, if material. A copy of the
District Continuing Disclosure Agreement is set forth in Appendix E of the Preliminary Official Statement
and will also be set forth in the Official Statement, and the specific nature of the information to be contained
in the Annual Report (as defined in the District Continuing Disclosure Agreement) or the notices of material
events is set forth in the District Continuing Disclosure Agreement;
(t) The Preliminary Official Statement heretofore delivered to the Underwriter was, and
hereby is, expressly deemed final by the Authority as of its date, except for the omission of such information
as is permitted to be omitted in accordance with paragraph (b)( 1) of Section 240. 15c2-12 in Chapter II of
Title 17 of the Code of Federal Regulations ("Rule 15c2-12"). The Authority hereby covenants and agrees
that, within seven (7) business days from the date hereof, or upon reasonable written notice from the
Underwriter within sufficient time to accompany any confirmation requesting payment from any customers
of the Underwriter (e.g., this may require delivery at least 3 business days in advance of the Closing Date
if the Closing Date is less than 10 business days from the date hereof), the Authority shall cause a final
printed form of the ()fficial Statement to be delivered to the Underwriter in sufficient quantity specified by
the Underwriter to comply with paragraph (b)( 4) of Rule 15c2-12 and Rules G-12, G-15, G-32 and G-36 of
the Municipal Securities Rulemaking Board;
6
(u) The District has not failed to comply with any continuing disclosure undertaking
previously entered into in connection with the provisions of Rule 15c2-12(b)(5); and
(v) Except as disclosed in the Official Statement, the Authority and the City have not
failed to comply with any continuing disclosure undertaking previously entered into for itself or on behalf
of another entity, in connection with the provisions of Rule 15c2-12(b)( 5).
3. Condlflons to th~ ()hli?~tlons of th~ TTnr1~rwr1t~ The obligations of the
Underwriter to accept delivery of and pay for the 2006 Bonds on the Closing Date shall be subject, at the
option of the Underwriter, to the accuracy in all material respects of the representations and warranties on
the part of the Authority contained herein, as of the date hereof and as of the Closing Date, to the accuracy
in all material respects of the statements of the officers and other officials of the Authority made in any
certificates or other documents furnished pursuant to the provisions hereof, to the performance by the
Authority of its obligations to be performed hereunder at or prior to the Closing Date and to the following
additional conditions:
(a) Atthe Closing Date, the Procedural Resolutions, the Ordinance, the 2006 Bonds,
the District Documents, and any other applicable agreements, shall be in full force and effect, and shall not
have been amended, modified or supplemented, except as may have been agreed to in writing by the
Underwriter, and there shall have been taken in connection therewith, with the issuance of the 2006 Bonds
and with the transactions contemplated thereby and by this Bond Purchase Agreement, all such actions as,
in the opinion of ()uint & Thimmig LLP, San Francisco, California (''Bond Counsel"), shall be necessary
and appropriate.
(b) At the Closing Date, the ()fficial Statement shall be in form and substance
satisfactory to the Underwriter and the Authority and shall not contain any untrue statement of a material fact
or omit to state a material fact required to be stated therein or necessary to make the statements therein, in
light of the circumstances under which they were made, not misleading.
(c) Between the date hereof and the Closing Date, the market price or marketability of
the 2006 Bonds at the initial offering prices set forth in the Official Statement shall not have been materially
adversely affected, in the reasonable judgment of the Underwriter (evidenced by a written notice to the
Authority terminating the obligation of the Underwriter to accept delivery of and pay for the 2006 Bonds),
by reason of any of the following:
( 1) legislation introduced in or enacted (or resolution passed) by the Congress
of the United States of America or recommended to the Congress by the President of the United
States, the Department of the Treasury, the mtemal Revenue Service, or any member of Congress,
or favorably reported for passage to either House of Congress by any committee of such House to
which such legislation had been referred for consideration or a decision rendered by a court
established under Article III of the Constitution of the United States of America or by the Tax Court
of the United States of America, or an order, ruling, regulation (final, temporary or proposed), press
release or other form of notice issued or made by or on behalf of the Treasury Department or the
Internal Revenue Service of the United States of America, with the purpose or effect, directly or
indirectly, of imposing federalincome taxation upon the interest as would be received by the owners
of the 2006 Bonds beyond the extent to which such interest is subject to taxation as of the date
hereof;
7
(2) legislation introduced in or enacted (or resolution passed) by the Congress
of the United States of America, or an order, decree or injunction issued by any court of competent
jurisdiction, or an order, ruling, regulation (final, temporary or proposed), press release or other form
of notice issued or made by or on behalf of the Securities and Exchange Cornmission,or any other
governmental agency havingjurisdiction of the subject matter, to the effect that obligations of the
general character of the 2006 Bonds, or the 2006 Bonds, including any or all underlying
arrangements, are not exempt from registration under or other requirements of the Securities Act of
1933, as amended, or that the Fiscal Agent Agreement is not exempt from qualification under or
other requirements of the Trust Indenture Act of 1939, as amended, or that the issuance, offering or
sale of obligations of the general character of the 2006 Bonds, or of the 2006 Bonds, including any
or all underwriting arrangements, as contemplated hereby or by the Official Statement or otherwise
is or would be in violation of the federal securities laws as amended and then in effect
(3) a general suspension of trading in securities on the New York Stock
Exchange, or a general banking moratorium declared by federal, State of New Yorkor State officials
authorized to do so;
(4) any amendment to the federal or State Constitution or action by any federal
or State court, legislative body, regulatory body or other authority materially adversely affecting the
tax status ofthe Authority or the District, its property, income, securities (or interestthereon) or the
validity or enforceability of the Special Tax;
(5) any event occurring, or information becoming known, which, in the
reasonable judgment of the Underwriter, makes untrue in any material respect any statement or
information contained in the ()fficial Statement, or results in the ()fficial Statement containing any
untrue or misleading statement of a material fact or omitting to state a material fact required to be
stated therein or necessary to make the statements therein, in the light of the circumstances under
which they were made, not misleading;
(6) the entry of an order by a court of competent jurisdiction which enjoins or
restrains the City from issuing permits, licenses or entitlements within the District, which order, in
the reasonable opinion of the Underwriter, materially and adversely affects proposed developments
within the District in particular or the City in general;
(7) any legislation, ordinance, rule or regulation shall be introduced in, or be
enacted by any governmental body, department or agency of the State or a decision by any court of
competent jurisdiction within the State or any court of the United States shall be rendered which,
in the reasonable opinion of the Underwriter, materially adversely affects the market price of the
2006 Bonds;
(8) additional material restrictions not in force as of the date hereof shall have
been imposed upon trading in securities generally by any governmental authority or by any national
securities exchange which restrictions materially adversely affect the Underwriter's ability to market
the 2006 Bonds; or
(9) the United States has become engaged in hostilities which have resulted in
a declaration of war or a national emergency or there has occurred any other outbreak or escalation
of hostilities or a national or international calamity or crisis, financial or otherwise, the effect of such
outbreak, calamity or crisis on the financial markets of the United States, being such as, in the
8
reasonable opinion of the Underwriter, would affect materially and adversely the ability of the
Underwriter to market the 2006 Bonds.
(d) On or prior to the Closing Date, the Underwriter shall have received two counterpart
originals or certified copies of each of the following documents, in each case satisfactory in form and
substance to the Underwriter:
( 1) The Procedural Resolutions and the Ordinance, together with a certificate
dated as of the Closing Date of the Secretary of the Board to the effect that each is a true, correct and
complete copy of the one duly adopted by the Board;
(2) An executed copy of the Fiscal Agent Agreement;
(3) An executed copy of this Bond Purchase Agreement;
(4) An executed copy of the Official Statement;
(5) An executed copy of the District Continuing Disclosure Agreement;
(6) An executed copy of the Acquisition Agreement and Supplement No. 1 to
the Acquisition Agreement;
(7) An executed copy of the City Joint Community Facilities Agreement;
(8) An executed copy of the Caltrans Joint Community Facilities Agreement;
(9) An approving opinion, dated the Closing Date and addressed to the
Authority, of Bond Counsel for the Authority, in the form attached to the Official Statement as
AppendixF and a letter, dated the Closing Date and addressed to the Underwriter, to the effect that
such opinion addressed to the Authority may be relied upon by the Underwriter to the same extent
as if such opinion was addressed to it;
(10) A supplemental opinion, dated the Closing Date and addressed to the
Underwriter of Bond Counsel to the effect that (i) the 2006 Bonds are not subjectto the registration
requirements of the Securities Act of 1933, as amended and the Fiscal Agent Agreement is exempt
from qualification pursuantto the Trust Indenture Act of 1939, as amended; (ii) the Bond Purchase
Agreement has been duly authorized, executed and delivered by the Authority, and (assuming the
due authorization, execution and delivery by, and validity against, the Underwriter) is a valid and
binding agreement of the Authority enforceable in accordance with its terms, except as enforcement
maybe limited by bankruptcy, moratorium, insolvency or other laws affecting creditor's rights or
remedies and is subjectto general principles of equity (regardless of whether such enforceability is
considered in equity or at law); (iii) the statements contained in the Official Statement on the cover
page and under the captions "INTRODUCTION - Sources of Payment for the 2006 Bonds,"
"INTRODUCTION - Tax Exemption," "THE 2006 BONDS," "SECURITY FOR THE 2006
BONDS," "LEGAL MATTERS - Tax Exemption," APPENDLX D - "Summary of Certain
Provisions ofthe Fiscal Agent Agreement" and APPENDIX F - "Form oft lpinion of Bond Counsel"
are accurate insofar as such statements expressly summarize certain provisions of the 2006 Bonds,
the Fiscal Agent Agreement and such firm's opinion concerning certain federal tax matters relating
9
to the 2006 Bonds and (iv) the District is duly formed as a community facilities district under the
Act
( 11) An opinion, dated the Closing Date and addressed to the District and the
Underwriter of McFarlin & Anderson LLP, Disclosure Counsel, to the effect that without having
undertaken to determine independently the accuracy, completeness or fairness of the statements
contained in the Official Statement, but on the basis of their participation in conferences with
representatives of the District, Richards, Watson & Gershon, District Counsel, Bond Counsel,
FieldmanRolapp &Associates, as financial advisor, Stone & Youngberg LLC, as underwriter, and
others, and their examination of certain documents, no facts have corne to their attention which
would lead them to believe that the Official Statement as of its date and as of the Closing Date
contained any untrue statement of a material fact or omitted to state any material fact required to be
stated therein or necessary in order to make the statements therein, in the light of the circumstances
under which they were made, not misleading (except that no opinion or belief need be expressed as
to any financial, statistical, economic, engineering, or demographic data or forecasts, numbers,
charts, tables, graphs, maps, estimates, projections, assumptions or expressions of opinion, or any
information about feasibility, valuation, appraisals, market absorption, real estate, archaeological,
or environmental matters, the Appendices to the ()fficial Statement or any information about debt
service requirements, book-entry, The Depository Trust Company, the Insurer, the Insurance Policy,
or tax exemption contained in the ()fficial Statement);
( 12) An opinion, dated the ClosingDate and addressed to the Underwriter, ofthe
City Attorney, as counsel to the Authority and to the District, to the effect that
(i) The Authority is duly organized and validly existing under the Constitution and laws
of the State of California;
(ii) The District is duly organized and validly existing as a community facilities district
under the laws of the State, with full legal right, power and authority to issue the 2006 Bonds and
to perform all of its obligations under the 2006 Bonds and the District Documents;
(111) To the best of such counsel's knowledge, no action, suit, proceeding, inquiry or
investigation, at law or in equity, before or by any court, regulatory agency, public board or body
is pending or threatened against the Authority or the District affecting the existence of the Authority
or the District or the title of their officers to their respective offices, or which would materially
adversely affect the ability of the Authority to perform its obligations hereunder or under the 2006
Bonds or the District Documents or seeking to restrain or to enjoin the development of property
within the District, the issuance, sale, or delivery of the 2006 Bonds or the exclusion from gross
income for federal income tax purposes or State personal income taxes of interest on the 2006
Bonds, or the application of the proceeds thereof in accordance with the Fiscal Agent Agreement,
or the collection or application of the Special Tax to pay the principal of and interest on the 2006
Bonds, or in any way contesting or affecting the validity or enforceability of the 2006 Bonds or the
District Documents or any action of the Authority contemplated by any of said documents or the
accuracy or completeness of the Preliminary Official Statement or the Official Statement;
(iv) The Board on behalf of the District has duly and validly adopted the Procedural
Resolutions and the ()rdinance at meetings of the Board which were called and held pursuant to law
and with all public notice required by law and at which a quorum was present and acting at the time
10
of adoption, and the Procedural Resolutions and the Ordinance are now in full force and effect and
have not been amended;
(v) To the best of such counsel's knowledge, the Authority and the District are not in
breach of or in default under any applicable law or administrative rule orregulation of the State or
the United States of America, or of any department, division, agency or instrumentality of either
thereof, or under any applicable court or administrative decree or order, or under any loan
agreement, note, resolution, indenture, fiscal agent agreement, contract, agreement or other
instrument to which the Authority or the District is a party or is otherwise subject or bound, a
consequence of which could be to materially and adversely affect the ability of the Authority or the
District to perform their obligations under the Procedural Resolutions, the Ordinance, the 2006
Bonds or any District Documents or which, with the passage of time or the giving of notice or both,
would constitute an event of default thereunder;
(vi) The adoption of the Procedural Resolutions and the Ordinance, and the execution
and delivery of the 2006 Bonds and the District Documents, and compliance with the provisions of
each, did not and will not conflict with or constitute a breach of or default under any applicable court
or administrative decree or order, or under any loan agreement, note, ordinance, resolution,
indenture, fiscal agent agreement, contract, agreement or other instrument to which the Authority
or the District is a party or is otherwise subject or bound, a consequence of which could be to
materially and adversely affect the ability ofthe Authority to perform its obligations under the 2006
Bonds or any District Documents; and
(vii) Without having undertaken to determine independently the accuracy, completeness
or fairness of the statements contained in the ()fficial Statement, but on the basis of their
participation in conferences with representatives of the Authority, the District, Bond Counsel,
Disclosure Counsel, representatives of the Underwriter, and others, and their examination of certain
documents, no information has corne to their attention which would lead them to believe that the
information with respect to the Authority and the District in the Official Statement, as of its date and
as of the Closing Date, contained any untrue statement of a ma terial fact or omitted to state any
material fact required to be stated therein or necessary in order to make the statements therein, in the
light of the circumstances under which they were made, not misleading (except that no opinion or
belief need be expressed as to any Appendix to the Official Statement or any other financial,
statistical or economic data or forecasts, numbers, charts, graphs, estimates, projections, assumptions
orexpressions of opinion, or any information about valuation or appraisals, or any information about
Harveston, LLC, LEN-mland, LLC, the Merchant Builders, MW Housing Partners III L.P., The
MorganGroup, Temecula Retirement Residence, Winchester Hills I,LLC, the Insurer, the msurance
Policy, book-entry or DTC contained in the Official Statement);
(13) A Certificate, dated the Closing Date and signed by an authorized
representative of the Authority, certifying that (i) the representations and warranties of the Authority
contained in this Bond Purchase Agreement are true and correct in all material respects on and as
of the Closing Date with the same effect as if made on the Closing Date; (ii) no event has occurred
since the date of the ()fficial Statement affecting the matters contained therein which should be
disclosed in the ()fficial Statement for the purposes for which it is to be used in order to make the
statements and information contained in the ()fficial Statement with respect to the Authority or the
District not misleading in any material respect; and (iii) the Authority has complied with all the
agreements and satisfied all the conditions on its part to be performed or satisfied under the 2006
Bonds and the District Documents at or prior to the Closing Date in order to issue the 2006 Bonds;
11
(14) A certificate of the Authority, in a form acceptable to Bond Counsel,
containing the Authority's reasonable expectations in support of the conclusion that the 2006 Bonds
are not arbitrage bonds within the meaning of Section 148 of the Internal Revenue Code of 1986,
as amended;
(15) An opmlOn of counsel to the Fiscal Agent, dated the Closing Date,
addressed to the Underwriter, in form and substance satisfactory to the Underwriter, to the effect
that:
(i) TheFiscal Agent is a national banking association, organized and existing under and
by virtue of the laws of the United States of America;
(ii) The Fiscal Agent has duly authorized the execution and delivery of the Fiscal Agent
Agreement and the District Continuing Disclosure Agreement (as defined below);
(111) TheFiscal Agent Agreement and the District Continuing Disclosure Agreement have
been duly entered into and delivered by the Fiscal Agent and assuming due, valid and binding
authorization, execution and delivery by the other parties thereto, constitute the legal, valid and
binding obligations oftheFiscal Agent enforceable againstthe Fiscal Agent in accordance with their
terms, except as the enforceability thereof may be limited by applicable bankruptcy, insolvency or
other similar laws affecting the enforcement of creditors' rights generally, or by general principles
of equity;
(iv) Acceptance by the Fiscal Agent ofthe duties and obligations under the Fiscal Agent
Agreement and the District Continuing Disclosure Agreement and compliance with provisions
thereof will not conflict with or constitute a breach of or default under any law or administrative
regulation, court decree, resolution, charter, by-laws, agreement, instrument or commitment to which
the Fiscal Agent is subject;
(v) Ail approvals, consents and orders of any governmental authority or agency having
jurisdiction in the matter which would constitute a condition precedent to the performance by the
Fiscal Agent of its duties and obligations under the Fiscal Agent Agreement and the District
Continuing Disclosure Agreement have been obtained and are in full force and effect;
(vi) To such counsel's knowledge, there is no litigation pending or threatened against
or affecting the Fiscal Agent to restrain or enjoin the Fiscal Agent's participation in, or in any way
contesting the powers of the Fiscal Agent with respect to the transactions contemplated by the 2006
Bonds or the Fiscal Agent Agreement; and
(vii) To such counsel's knowledge, there is no litigation pending or threatened against
or affecting the Fiscal Agent to restrain or enjoin the Fiscal Agent's participation in, or in any way
contesting the powers ofthe Fiscal Agent with respect to the transactions contemplated by the 2006
Bonds, the Fiscal Agent Agreement
(16) A certificate of the Fiscal Agent, dated the Closing Date, in form and
substance acceptable to counsel for the Underwriter, to the following effect:
(i) The Fiscal Agent is a national banking association, and is organized and existing
under and by virtue ofthe laws of the United States of America, and has the full power and authority
12
to accept and perform its duties under the Fiscal Agent Agreement and the District Continuing
Disclosure Agreement;
(ii) Subjectto the provisions of the Fiscal Agent Agreement, the Fiscal Agentwill apply
the proceeds from the 2006 Bonds to the purposes specified in the Fiscal Agent Agreement;
(iii) The2006 Bonds have been duly and validly authenticated onbehalf ofFiscal Agent;
(iv) To the best knowledge of the Fiscal Agent, no consent, approval, authorization or
other action by any govemmental or regulatory authority having jurisdiction over the Fiscal Agent
that has not been obtained is or will be required for the authentication of the 2006 Bonds or the
consummation by the Fiscal Agent of the other transactions contemplated to be performed by the
Fiscal Agent in connection with the authentication of the 2006 Bonds and the acceptance and
performance of the obligations created by the Fiscal Agent Agreement;
(v) There is no action, suit, proceeding, inquiry or investigation, at law or in equity,
before or by any court, regulatory agency, public board or body pending or, to the best of its
knowledge, threatened in any way affecting the existence of the Fiscal Agent, or seeking to restrain
or to enjoin the execution and delivery of the Fiscal Agent Agreement or the District Continuing
Disclosure Agreement, or the authentication of the 2006 Bonds, by the Fiscal Agent, or in anyway
contesting or affecting thevalidity or enforceability, as againstthe Fiscal Agent, ofthe Fiscal Agent
Agreement or the District Continuing Disclosure Agreement or any action of the Fiscal Agent
contemplated by any of said documents, or in which an adverse outcome would materially and
adversely affect the ability of the Fiscal Agent to perform its obligations under the Fiscal Agent
Agreement or the District Continuing Disclosure Agreement;
(vi) To the best knowledge of the Fiscal Agent, the Fiscal Agent is not in breach of or
in default under any applicable law or administrative rule or regulation of the State or the United
States of America, or of any department, division, agency or instrumentality of either thereof, or
under any applicable court or administrative decree or order, or under any loan agreement, note,
resolution, indenture, fiscal agent agreement, contract, agreement or other instrument to which the
Fiscal Agent is a party or is otherwise subject or bound, a consequence of which could be to
materially and adversely affect the ability of the Fiscal Agent to perform its obligations under the
Fiscal Agent Agreement or the District Continuing Disclosure Agreement; and
(vii) To the best knowledge of the Fiscal Agent, the authentication of the 2006 Bonds,
and the execution and delivery of the Fiscal AgentAgreement and the District Continuing Disclosure
Agreement by the Fiscal Agent, and compliance with the provisions of each, will not conflict with
or constitute a breach of or default under any applicable law or administrative rule or regulation of
the State or the United States of America, or of any deparbnent, division, agency or instrumentality
of either thereof, or under any applicable court or administrative decree or order, or under any loan
agreement, note, ordinance, resolution, indenture, fiscal agent agreement, contract, agreement or
other instrument to which the Fiscal Agent is a party or is otherwise subject or bound, a consequence
of which could be to materially and adversely affect the ability of the Fiscal Agent to perform its
obligations under the Fiscal Agent Agreement or the District Continuing Disclosure Agreement;
( 17) A defeasance opinion of Bond Counsel, dated as of the Closing Date and
addressed to the Authority and the Underwriter, in form and substance satisfactory to the
Underwriter and its counsel;
13
(18) A certificate from Psomas to the effect that (i) if the Special Tax is levied
in accordance with the terms as set forth in the Rate and Method of Apportionment of Special Tax
of the District and collected, the amount of the levy will be sufficient to make timely payments of
debt service and estimated annual administrative expenses on the 2006 Bonds, provided that acreage
and number of units supplied by the District and by Harveston, LLC, the Merchant Builders, or by
any of their agents, which has beenrelied upon by Psomas is true and correct(no representation need
be made as to the actual amounts that will be collected in future years), (ii) the amount of the
maximum Special Taxes that may be levied in each Fiscal Year is at least 110% of the annual debt
service for the 2006 Bonds for each such Fiscal Year, assuming that the net taxable acreage and
projected development figures provided to Psomas by Harveston, LLC are true and correct, (iii) the
description of the Rate and Method of Apportionment of the Special Taxes contained in the section
captioned "SECURITY FOR THE 2006 BONDS Special Taxes," and in Appendix B is correctly
presented in all material respects and (iv) that, as of the dates of the Preliminary Official Statement
and the Official Statement the information contained in those portions of the Official Statement
entitled "INTRODUCTION The Community Facilities District," "INTRODUCTION Sources
of Payment for the 2006 Bonds," "SECURITY FOR THE 2006 BONDS Special Taxes,"
"SECURITY F< lR THE 2006 B( lNDS - Rate and Method," "THE C< lMMUNITY FACILITIES
DISTRICT - Direct and Overlapping Debt," "THE COMMUNITY FACILITIES DISTRICT-
Estimated Value-to-Lien Ratios and Estimated Special Tax Allocation by Property Ownership,"
"THE COMMUNITY FACILITIES DISTRICT - Overlapping Community Facilities and
Assessment Districts," "BONDOWNERS' RISKS - Levy and Collection of the Special Tax;
Insufficiency of the Special Tax," "BONDOWNERS' RISKS - Exempt Properties," and in the
Tables of the Official Statement captioned "Table 5 - Temecula Public Financing Authority
Community Facilities District No. 01-2 (Harveston) Secured Property Tax Roll and Direct and
(lverlapping Debt," and "Table 6 - Temecula Public Financing Authority Community Facilities
DistrictNo. 01-2 (Harveston) Fiscal Year 2006-07 Allocation Based on Developed and Undeveloped
Property Special Tax Allocation by Appraiser's Categories (As ofJanuary 15,2006 Appraisal Date
of Value)" and "Appendix B" and the other data provided by the Special Tax Consultant and
included in the Official Statement, do not, to such consultant's knowledge, contain any untrue
statement of a material fact or omit to state a material fact necessary to make the statements made
therein, in light of the circumstances under which they were made, not misleading;
(19) (i) The final appraisal report with a date of value ofJanuary 15, 2006 (the
"Appraisal Report") of Stephen G. White, MAl (the "Appraiser") setting forth appraised values of
land within the District at not less than the appraised values set forth in the Official Statement, along
with the Supplemental Report dated May 11, 2006, and (ii) a certificate of the Appraiser in
substantially the form of Exhibit B hereto, dated the Closing Date and addressed to the Underwriter,
the Authority and the Community Facilities District;
(20) A conformed or certified copy of the Notice of Special Tax Lien recorded
on May 15, 2002, as Document No. 2002-254462 with the County Recorder;
(21) Certified copies of proceedings relating to formation of the District,
including copies oftheProcedural Resolutions and (lrdinance No. TPF A-02-01, adopted on April 9,
2002, levying the special taxes in accordance with the Rate and Method of Apportionment of Special
Taxes;
(22) Evidence that the federal tax information Form 803 8-G has been prepared
for filing;
14
(23) Copies of filings with the California Debt and Investment Advisory
Commission relating to the issuance of the 2006 Bonds;
(24) Evidence satisfactory to the Underwriter that the Series ABonds have been
rated "AAA" by Standard & Poor's, and that the underlying ratings on the 2006 Bonds have been
rated [" "] by Standard & Poor's, and that such ratings are in effect as of the date of Closing;
(25) The msurance Policy issued by the Insurer with respect to the Series A
Bonds, a certificate of the Insurer and an opinion of counsel to the Insurer regarding the
enforceability of the InsurancePolicy, each in form and substance satisfactory to the District and the
Underwriter; and
(26) Such additional legal opinions, certificates, instruments and other documents
as the Underwriter may reasonably request to evidence the truth and accuracy, as of the date hereof
and as of the Closing Date, of the statements and information contained in the Prelirninary Official
Statement and the Official Statement, of the Authority's representations and warranties contained
herein and the due performance or satisfaction by the Authority at or prior to the Closing Date of all
agreements then to be performed and all conditions then to be satisfied by the Authority in
connection with the transactions contemplated hereby and by the Procedural Resolutions and the
(lfficial Statement.
(e) At the time of the Closing, no default shall have occurred or be existing under this
Purchase Agreement, the Fiscal Agent Agreement or the District Documents and the Authority and the
District shall not be in default in the payment of principal or interest on any of its bonded indebtedness which
default shall adversely impact the ability ofthe Authority or the District to make payment on the 2006 Bonds.
(f) If the Authority shall be unable to satisfy the conditions to the obligations of the
Underwriter to purchase, accept delivery of and pay for the 2006 Bonds contained in this Bond Purchase
Agreement, or if the obligations of the Underwriter to purchase, accept delivery of and pay for the 2006
Bonds shall be terminated for any reason permitted by this Bond Purchase Agreement, this Bond Purchase
Agreement shall terminate and neither the Underwriter nor the Authority shall be under any further
obligation hereunder, except that the respective obligations of the Authority and the Underwriter set forth
in Section 4 hereof shall continue in full force and effect.
4. Fxnenses.
Whether or not the 2006 Bonds are delivered to the Underwriter as set forth herein:
(a) The Underwriter shall be under no obligation to pay, and the Authority shall
payor cause to be paid (out of any legally available funds of the Authority relating to the District) all
expenses incident to the performance of the Authority's and the District's obligations hereunder, including,
but not limited to, the cost of printing and delivering the 2006 Bonds to the Underwriter, the cost of
preparation, printing (and! or word processing and reproduction), distribution and delivery of the Fiscal Agent
Agreement, the Procedural Resolutions, the (lrdinance, the Preliminary (lfficial Statement, the (lfficial
Statement and all other agreements and documents contemplated hereby (and drafts of any thereof) in such
reasonable quantities as requested by the Underwriter; the fees and expenses in connection with obtaining
a delinquency report and statement of direct and overlapping bonded debt from Psomas; and the fees and
disbursements of the Fiscal Agent for the 2006 Bonds, Bond Counsel, Disclosure Counsel and any market
absorption consultants, accountants, financial advisors, engineers or any other experts or consultants the
15
Authority has retained in connection with the 2006 Bonds and any out-of-pocket disbursements of the
Authority to be paid from the proceeds of the 2006 Bonds; and
(b) The Authority shall be underno obligation to pay, and the Underwriter shall
pay, the cost of preparation of any "Blue SkY''' or legal investment memoranda; expenses to qualify the 2006
Bonds for sale under any "Blue SkY''' or other state securities laws, the fees, if any, payable to the California
DebtandInvesbnent AdvisoryCommission on account of the 2006Bonds; CUSIP@ Service Bureau fees; and
all other expenses incurred by the Underwriter in connection with its public offering and distribution of the
2006Bonds (except those specifically enumerated in paragraph (a) of this section), including any advertising
expenses.
5. Notices. Any notice or other communication to be given to the Authority under this
BondPurchase Agreement may be given by delivering the same in writing to the Temecula Public Financing
Authority, 43200 Business Park Drive, Temecula, California 92590 Attention: Director of Finance; and any
notice or other communication to be given to the Underwriter under this Bond Purchase Agreement may be
given by delivering the same in writing to Stone & Youngberg LLC, 515 South Figueroa Street, Suite 1060,
Los Angeles, California 90071, Attention: Municipal Finance Deparbnent;provided, however, that all such
notices, requests or other communications may be made by telephone and promptly confirmed by writing.
The Authority and the Underwriter may, by notice given as aforesaid, specify a different address for any such
notices, request or other communications.
6. Parties in Tnterest. This Bond Purchase Agreement is made solely for the benefit
of the Authority and the Underwriter (including their successors or assigus), and no other person shall
acquire or have any right hereunder or by virtue hereof.
7. Sllrvlv:ll ()fRe!,re~ent:ltl()n~ :mc1 W:lrr:lntle~. The representations and warranties of
the Authority set forth in or made pursuant to this Bond Purchase Agreement shall not be deemed to have
been discharged, satisfied or otherwise rendered void by reason of the Closing or termination of this Bond
Purchase Agreement and regardless of any investigations made by or on behalf of the Underwriter (or
statements as to the results of such investigations) concerning such representations and statements of the
Authority and regardless of delivery of and payment for the 2006 Bonds.
8. Effp.d;vp. This Bond Purchase Agreement shall become effective and binding upon
the respective parties hereto upon the execution of the acceptance hereof by the Authority and shall be valid
and enforceable as of the time of such acceptance.
9. Annlicahle Law: Nonassi<mahilitv. This Bond Purchase Agreement shall be
governed by the laws of the State. This Bond Purchase Agreement shall not be assigued by the Authority
or the Underwriter.
10. Execution of Counternarts. This Bond Purchase Agreement may be executed in
several counterparts, each of which shall be regarded as an original and all of which shall constitute one and
the same.
11. No Prior Aoreements. This Bond Purchase Agreement supersedes and replaces all
prior negotiations, agreements and understandings between the parties hereto in relation to the sale of2006
Bonds by the Authority and represents the entire agreement of the parties as to the subject matter herein.
16
12. Portio 1 T Tnenfnrc.eo hilit~ Any provision of this Bond Purchase Agreement which
is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent
of such prohibition or unenforceability without invalidating therernaining provisions of this Bond Purchase
Agreement or affecting the validity or enforceability of such provision in any other jurisdiction.
[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
17
13. ron;hl;7Rr1 Tp,rm, Terms with initial capital letters not otherwise defined herein
shall have the meanings assigned to them in the Fiscal Agent Agreement or the Official Statement.
Very truly yours,
STONE & YOUNGBERG LLC
By:
ACCEPTED:
,2006
TEl'vlECULAPUBLIC FINANCING AUTHORITY FOR
AND ON BEHALF OF THE TEMECULA PlJBLIC
FmANCmGAl~HORITYCO~~~TYFACILIT1ES
DISTRICT NO. 01-2 (HARVESTON)
By:
18
EXHIBIT A
TEMECULA PUBLIC FINANCING AUTHORITY
COMMUNITY FACILITIES DISTRICT NO. 01-2 (HARVEST ON)
2006 SPECIAL TA,X REFUNDING BONDS, SERIES A
MATURITY SCHEDULE
Maturity Date
(September I)
Principal
Amount
Interest
Rate
Yield
Price
Serial Bonds:
211117
2008
2009
2010
2011
2012
21113
21114
21115
21116
211]7
21118
21119
2()2()
2()21
2022
2023
2024
2025
Tem1 Bonds:
2030
21136
Total Issue
$
0'0
0'0
The purchase price of the Series A Bonds shall be $ (which is the principal amount
thereof$ , less anet original issue discountof$ , and less the Underwriter's discount
of $ ). In addition, no accrued interest will be paid with respect to the Series A Bonds because
the Series A Bonds are dated the closing date.
A-I
TEMECULA PUBLIC FINANCING AUTHORITY
COMMUNITY FACILITIES DISTRICT NO. 01-2 (HARVEST ON)
2006 SPECIAL TA,X REFUNDING BONDS, SUBORDINATE SERIES B
Maturity Date
(September 1 )
Serial Bonds:
21)(17
2008
2009
2010
2011
2012
2013
2014
21115
21116
21117
2111R
21\19
2()2()
2()21
2()22
2()23
2024
2025
Tem1 Bonds:
2030
2036
Total Issue
MATURITY SCHEDULE
Principal
Amount
Interest
Rate
Yield
Price
$
0'0
0'0
The purchase price of the Series B Bonds shall be $ (which is the principal amount
thereof $ , less anet originalissue discount of $ , and less the Underwriter's discount
of $ ). In addition, no accrued interest will be paid with respect to the Series B Bonds because
the Series B Bonds are dated the closing date.
A-2
APPENDIX B
CERTIFICATE OF APPRAISER
Stone & Youngberg LLC
515 South Figueroa Street, Suite 1060
Los Angeles, California 90071
Temecula Public Financing Authority
43200 Business Park Drive
Temecula, California 92590
Temecula Public Financing Authority
Community Facilities District No. 01-2 (Harveston)
43200 Business Park Drive
Temecula, California 92590
The undersigued hereby states and certifies:
1. Thathe is an authorized principal of Stephen G. White, MAl (the "Appraiser") and as such
is familiar with the facts herein certified and is authorized and qualified to certify the same.
2. Thatthe Appraiser has prepared an appraisal report dated February 3, 2006 (the "Appraisal
Report"), on behalf of the Temecula Public Financing Authority (the "Authority") and in connection with
the Official Statement dated , 2006 ('i)fficial Statement"), for Temecula Public Financing
Authority Community Facilities District No. 01-2 (Harveston) 2006 Special Tax Refunding Bonds, Series
A (the "Series A Bonds") and 2006 Special Tax Refunding Bonds, Subordinate Series B (the "Series B
Bonds," collectively the "2006 Bonds").
"' That the Appraiser hereby consents to the reproduction and use of the Appraisal Report
appended to the Preliminary ()fficial Statement and the ()fficial Statement. The Appraiser also consents to
the references to the Appraiser and the Appraisal made in the Preliminary Official Statement and the Official
Statement.
4. In the opinion ofthe Appraiserthe assumptions made in the Appraisal Report are reasonable.
5. That the ()fficial Statement has been reviewed on behalf of the Appraiser and to the best
knowledge of the Appraiser the statements concerning the Appraisal Report and the value of the property
contained under the captions "INTRODUCTION Appraisal, " "INTRODUCTION Professionals Involved
in the Offering," "THE COMMUNITY FACILITIES DISTRICT Estimated Value-to-Lien Ratios and
Estimated Special Tax Allocation by Property Ownership, " "THE COMMUNITYF ACILITIES DISTRICT
Appraised Property Value," ''BONDOWNERS' RISKS Failure to Develop Properties,"
"BONDOWNERS'RISKS Appraised Values," ''BONDOWNERS' RISKS Hazardous Substances" and
"APPENDIX C Summary Appraisal Report" are true, correct and complete in all material respects and do
not contain any untrue statement of amaterial fact or omit to state a material fact required to be stated therein
or necessary in order to make the statements therein, in the light of the circumstances under which they were
made, not misleading.
B-1
6. Each of the parcels appraised by the Appraiser is encompassed within the Community
Facilities District.
7. That, as of the date of this Certificate, the conclusions set forth in the Appraisal Report
included as Appendix C to the Official Statement are confirmed.
8. That, as of the date of the Official Statement and as of the date hereof, the Appraisal Report
appended to the Official Statement, to the best of my knowledge and belief, and subject to all of the
Assumptions and Limiting Conditions set forth in the Appraisal Report, does not contain any untrue
statement of a material fact or omit to state a material fact necessary in order to make the statements
contained therein, in the light of the circumstances under which they were made, not misleading, and no
events or occurrences have been ascertained by the undersigned or have corne to the undersigned's attention
that would substantially change the estimated values stated in the Appraisal Report. However, the
undersigned has not performed any procedures since the date of the Appraisal Report to obtain knowledge
of such events or occurrences nor is the undersigned obligated to do so in the future.
9. The Underwriter, the Authority and the District, are entitled to rely on the Certificate.
Dated:
,2006
STEPHEN G. WHITE, MAl
By:
B-2
,2006
Stone & Youngberg LLC
515 South Figueroa Street, Suite 1060
Los Angeles, California 90071
Re: Temecula Public Financing Authority
Community Facilities District No. 01-2 (Harveston)
2006 Special Tax Refunding Bonds, Series A and
2006 Soecial Tax Refundin" Bonds. Subordinate Series B
Ladies and Gentlemen:
In connection with the proposed sale to you ofTemecula Public Financing Authority
(the "Authority") Community Facilities District No. 01-2 (Harveston) (the "District") 2006 Special
Tax Refunding Bonds, Series A (the "Series A Bonds"), and its 2006 Special Tax Refunding Bonds,
Subordinate Series B (the "Series B Bonds," collectively, the "2006 Bonds") the Authority has
delivered to you a Preliminary < )fficial Statement, dated , 2006, relating to the 2006
Bonds (the "Preliminary < )fficial Statement"). The Authority, for purposes of compliance with Rule
15c2-12 of the Securities and Exchange Commission, deems the Preliminary Official Statement to
be final as of its date, except for the omission of no more than the following information: the
offering prices, interest rates, selling compensation, aggregate principal amount, principal amount
per maturity, dates of mandatory sinking fund payments, delivery dates, and any other terms of the
2006 Bonds relating to such matters.
Very truly yours,
TEMECULA PUBLIC FINANCING
AUTHORITY COMMUNITY FACILITIES
DISTRICT NO. 01-2 (HARVESTON)
By:
Shawn Nelson, acting on behalf of
Temecula Public Financing Authority, for
the District
TEMECULA PUBLIC FINANCING AUTHORITY
COMMUNITY FACILITIES DISTRICT NO. 01-2
(HARVESTON)
2006 SPECIAL TAX REFUNDING BONDS, SERIES A
2006 SPECIAL TAX REFUNDING BOND, SUBORDINATE SERIES B
PRELIMINARY OFFICIAL STATEMENT
PRELIMINARY OFFICIAL STATEMENT DATED JULY _,2006
NEW ISSUE
RATINGS
Series A Bonds Insured Rating:
S&P
Series A Bonds Underlying Rating:
S&P
Series B Bonds: NOT RATED
(See "RATINGS - Ratings on Insured Bonds" herein)
In the opinion of Quint & Thimmig LLP, San Francisco, California, Bond Counsel, subject, however, to certain qualifications
describedherein, under existing law, the interest on the2006Bonds is excludedji-omgross incomeforfederal income tax pwposesand is not
an item of fax preference forpwposes of the federal altemative minimum fax imposed on individuals and c01porations; it should be noted,
however, that,for the pwpose afcomputing the altemative minimum tax imposed on cOlporations lasdefined forfederal income tax pwposes),
such interest is taken into account in determining certain income and earnings. Bond Counsel is also afthe opinion that under existing law,
the interest on the 2006 Bonds isexemptfi-om personal income taxation imposed by the State ofCali/omia. See "LEGAL !llATTERS - Tax
Exemption" herein.
TEMECULA PUBLIC FINANCING AUTHORITY
COMMUNITY FACILITIES DISTRICT NO. 01-2 (HARVEST ON)
$14,490,000" 2006 SPECIAL TA.X REFUNDING BONDS, SERIES A AND
$3,220,000' 2006 SPECIAL TA.X REFUNDING BONDS, SUBORDINATE SERIES B
Dated: Date of Delivery
Due: September 1, as shown on the inside cover
The Temecula Public Financing Authority Community Facilities District No. 01-2 (Harvestonl2006 Special Ta.'\:Refimding Bond,;;,
SeriesA(the "Series A Bonds") andits 2006 Special TaxRefimdingBonds, Subordinate Series B (the "SeriesB Bonds,"collectively, the "2006
Bonds") are being issued llllder the Mello-Roos Community Facilities Act of 1982 (the "Act") and a Fiscal Agent Agreement, dated as of
September 1, 2006 (the "Fiscal Agent Agreement"), by and between the Temecula Public Financing Authority(the "Authority") and U. S. Bank
National A,;;sociation, as Fiscal Agent (the "Fiscal Agent"), and are payable from proceed,;; of Special Ta.'\:es (as defined hereinl levied on
property within the Temecula Public Financing AuthorityCommmuty Facilities District No 01-2 (Harvestonl (the "District") according to the
rate and method of apportionment of special ta.'\: approved by the qualified electors of the District andby the Authority, acting as the legislative
body oflhe District
The 2006 Bonds are being issued, along with certain fimds on hand, (il to refimd on September L 2006, the District's outstanding
converted Special Ta.'\:Bonds, 2002 Series A, (iil to pay the costs of issuing the 2006 Bonds and (iiil to establish a Senior Subaccollllt within
the Reserve Flmd for the Series A Bonds all or a portion of which may be fimded by a reserve surety for the Series A Bonds in satisfaction of
the Reserve Requirement for the SeriesA Bond,;;, and ( iVl to establish a Subordinate Subaccolllltwithin the Reserve Flllld for the Series B Bonds
in satisfaction ofthe Reserve Requirement for the Series B Bonds. See "ESTIMATED SOURCES AND USES OF FUNDS" and "PLAN OF
FINANCE" herein.
The 2006 Bonds will be issued in denominations of$5,000 or integral multiples in excess thereof. The 2006 Bond,;;, when delivered,
will be initially registered in the name of Cede & Co., as nominee of The Depository Trust Company ("DTC"), New York, New York. DTC
will act as securities depository for the 2006 Bonds as described herein llllder "THE 2006 BONDS Book-Entry and DTC."
The scheduled payment of principal of and interest on the Series A Bonds when due will be guaranteed llllder an insurance policy
to be issued concurrently with the delivery ofthe Series A Bonds by [INSURER].
[INSURER]
PAYMENT OF THE SERIES B BONDS IS NOT SECURED BY THE MUNICIPAL BOND INSURANCE POLICY THE SERIES B
BUNDS ARE NUT RATED BY ANY AGENCY, INVULVE A HIGH DEGREE UF RISK AND ARE NUT SUITABLE FUR ALL
INVESTORS. SEE "BONDOWNERS RISKS."
The 2006 Bonds are subject to optional redemption, mandat01T redemptionfi-om prepayments of Special Taxes and mandat01T
sinking pl{Vment redemption as described herein.
THE 2006 BONDS, THE INTEREST THEREON, AND ANY PREMIUM PAYABLE ON THE REDEMPTION OF ANY OF lHE 2006
BONDS. ARE NOT AN INDEBTEDNESS OF THE AUTHORITY. THE DISTRICT (EXCEPT TO THE LIMITED EXTENT SET FORTH IN THE
FISCALAGENT AGREEMENT). THE STATE OF CALIFORNIA (lHE "STATE..) OR ANY OF ITS POLITICAL SUBDIVISiONS. AND NEITHER
THE AUTHORITY, THE DISTRICT (EXCEPT TO THE LIMITED EXTENT SET FORTHlNlHE FISCAL AGENT AGREEMENT), THE STATE
NOR ANY OF ITS POLITICAL SUBDiVISiONS IS LIABLE FOR THE2006 BONDS. NEITHER THE FAITH AND CREDIT NOR THE TAXING
POWEROF THE AUTHORITY, THE DISTRICT (EXCEPT TO THE LIMITED EXTENT SET FORTH IN THE FISCALAGENT AGREEMENT)
OR THE STATE ORANY POLITICAL SUBDiVISiON THEREOF IS PLEDGED TO THE PAYMENT OF THE 2006 BONDS. OTHER THAN
THE SPECIAL TAXES LEVIED WITHIN THE DISTRICT, NO TAXES ARE PLEDGED TO THE PAYMENT OF THE2006 BONDS. THE 2006
BONDS ARE NOT A GENERAL OBLIGATION OF THE AUTHORITY OR THE DISTRICT. BUT ARE LIMITED OBLIGATIONS OF THE
DISTRICT PAYABLE SOLELY FROM THE SOURCES PROVIDED IN THE FISCAL AGENT AGREEMENT.
This coverpage contains cel1ain infonnationfor qllick reference only. It is not a sllmmary of the isslle. Potential investors mllstread the enlire
Official Statement to obtain infonnation essenlial to the making of an itifonned investment decision with respect to the 2006 Bonds. Investment in the
2006Bonds ilJl'oh'es riskswhich maynot be appropriatefor some investors. See ''BONDOWNERS' RISKS" hereinfora discllssion ofcel1ain special risk
factors that shollld be considered in evalllating the investment qllali/y of the 2006 Bonds.
MATITRITY S('HFI)III.F
(See Inside Cover)
*Preliminary, subject to change.
Plea~erefer tothe in~idecoverpage fora ~ummary of the principal amount~, intere~trate~,reoffering yield~andCUSIP';:'number~for the 2006 Bond~.
The2006 Bond~ are offered when, a~ and ifi~~ued and accepted by the UndeIWriter, ~ubject to approval a~to theirlegality by Quint & Thimmig LLP,
San Franci~co, California, Bond Coun~eL and ~ubject to certain other condition~. McFarlin & Ander~on LLP, Lake Fore~t, California i~ acting a~ Di~c1o~ure
Coun~el. Certain legal matter~will be pa~~ed on for the Authority and the Di~trict byRichard~, Wat~on & Ger~hon, Lo~ Angele~, California, the City Attorney
It is anticipated that the2006 Bonds, in book-entry-only fonn, will be available for delivery to DTC in New York, New York on or about September [1], 2006.
Stone & Youngberg LLC
Daled: Augusl_, 2006
Thefollowillg lallguage to be imerted by the prillte}; ill red, at the top of the Po::;ji-Ollt cover:
PRELIMINARY OFFICIAL STATEMENT DATED JlTL Y _,2006
TIle followillg lallguage to be illserted by the prillter. ill red, vertically alollg the l~ft margill ~f the POSfrollt cover:
This Preliminary Official Statement amI the information containeu herein are subject to completion or arnemlrnent.
Unuer no circumstances shall this Preliminary ()fficial Statement constitute an offer to sell or a solicitation of an offer
to buy nor shall there be any sale ofthese securities in any jurisdiction in which such offer, solicitation or sale would be
unlawful.
MATURITY SCHEDULE
TEMECULA PUBLIC FINANCING AUTHORITY
COMMUNITY FACILITIES DISTRICT NO. 01-2
(HARVEST ON)
2006 SPECIAL T A.X REFUNDING BONDS, SERIES A
$ Serial Series A Bonds
Base CUS1P@No. t
Maturity
(September 1)
20()7
2008
2009
2010
2011
2012
2013
2014
2015
Principal
Amount
Interest
Rate
Yield
CUSIpOO
No.t
Maturity
(September 1)
2016
201
2018
2019
2020
2021
2022
2023
20
Principal
Amount
Interest
Rate
Yield
CUSIpOO
No.t
$
%l
%l
$
%l
%l
$
$
__%) Term Serie~ A BonJ~ due September 1. 20 . Yield %l CUSIP~JNo.
__%) Term Serie~ A BonJ~ due September 1. 2036. Yield --%l CUSIP~JNo.
TEMECULA PUBLIC FINANCING AUTHORITY
COMMUNITY FACILITIES DISTRICT NO. 01-2
(HARVEST ON)
2006 SPECIAL TA.X REFUNDING BONDS, SUBORDINATE SERIES B
$ Serial Series B Bonds
Base CUSlpooNo. 1
Maturity Principal Interest CUSIpoo Maturity Principal Interest CUSIpoo
(Septemberll Amount Rate Yield Nol (September 1) Amount Rate Yield Nol
2007 $ ~'o ~'o 2016 $ ~'o ~'o
2008 2017
2009 2018
2010 2019
2011 2020
2012 2021
2013 2022
2014 2023
2015 20
$ ~'o Term Series B Bonds due September 1, 20 , Yield ~'O CUSIP~J No.
$ ~'o Term Series B Bonds due September 1, 2036, Yield % CUSIP'" No.
t C'US1P@ A registered trademark of the American Bankers Association. C'opyright iD 1999-21 II 16 Standard &
Poor's, a Division of The McGraw-Hill C'ompanies, Inc. C'US1P" data herein is provided by Standard & Poor's
CUSlp<1> Service Bureau. This uata is not intenueu to create a uatabase anu uoes not serve in any way as a substitute
for the ClTSlpoo Service Bureau. ClTSIpoonurnbers are provided for convenience of reference only Neither the
Authority nor the Underwriter takes any responsibility for the accuracy of such numbers.
TEMECULA PUBLIC FINANCING AUTHORITY
BOARD OF DIRECTORS
Michael S. Naggar, Chairperson
Jeff Comerchero, Vice Chairperson
Ron Roberts, Member
Jeff Stone, Member
Charles W. Washington, Member
AUTHORITY / CITY STAFF
Shawn Nelson, Executive Director and City Manager
Genie Roberts, Authority Treasurer and City Finance Director
Susan Jones, Authority Secretary and City Clerk
SPECIAL SERVICES
Bond Counsel
Quint & Thirnrnig LLP
San Francisco, California
Authority Counsel
Richards, Watson & Gershon
A Professional Corporation
Los Angeles, California
Disclosure Counsel
McFarlin & Anderson LLP
Lake Forest, California
Special Tax Consultant
Psomas
Riverside, California
Financial Advisor to the Authority
Fieldman, Rolapp & Associates
Irvine, California
Fiscal Agent/Dissemination Agent
U.S. Bank National Association
Los Angeles, California
Appraiser
Stephen G. White, MAl
Fullerton, California
GENERAL INFORMATION ABOFT THE OFFICIAL STATEMENT
Use ofOfficiaI Statement This Official Statement is submitted in connection with the offer and sale
ofthe 2006 Bonds referred to herein and may not be reproduced or used, in whole or in part, for any other
purpose. This Official Statement is not to be construed as a contract with the purchasers ofthe 2006 Bonds.
Estimates and Forecasts. When used in this Official Statement and in any continuing disclosure by
the District in any press release and in any oral statement made with the approval of an authorized officer of
the District or any other entity described or referenced herein, the words or phrases "will likely result," "are
expectedto " "will continue" "is anticipated" "estimate" "project" "forecast" "expect" "intend" and similar
e~pression~ identifY "forw~rd-looking stat~ments" within the m'eaning of the Privat~ Securities Litigation
Reform Act of 1995, Section 21E of the United States Securities Exchange Act of 1934, as amended, and
Section 27 A ofthe United States Securities Act of1933, as amended. Such statements are subject to risks and
uncertainties that could cause actual results to differ materially from those contemplated in such forward-
looking statements. Anyforecastis subjectto such uncertainties. Inevitably, some assumptions used to develop
the forecasts will not be realized and unanticipated events and circumstances may occur. Therefore, there are
likely to be differences between forecasts and actual results and those differences may be material. The
information and expressions of opinion herein are subject to change without notice, and neither the delivery of
this Official Statement nor any sale made hereunder shall, under any circumstances, give rise to any implication
that there has been no change in the affairs ofthe District or any other entity described or referenced herein
since the date hereof. The District does not plan to issue any updates or revision to the forward-looking
statements set forth in this Official Statement.
LimitedOffering. No dealer, broker, salesperson or other person has been authorized by the District
to give any information or to make any representations in connection with the offer or sale ofthe 2006 Bonds
other than those contained herein and if given or made, such other information or representation must not be
relied upon as having been authorized by the District or the Underwriter. This Official Statement does not
constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale ofthe 2006 Bonds by
a person in any jurisdiction in which it is unlawful for such person to make such an offer, solicitation or sale.
InvolvementofUnderwriter. The Underwriter has submitted the following statement for inclusion in
this Official Statement: The Underwriter has reviewed the information in this Official Statement in accordance
with, and as a part of, its responsibilities to investors under the federal securities laws as applied to the facts
and circumstances of this transaction, but the Underwriter does not guarantee the accuracy or completeness of
such information. The information and expressions of opinions herein are subject to change without notice and
neither delivery of this Official Statement nor any sale made hereunder shall, under any circumstances, create
any implication that there has been no change in the affairs of the District or any other entity described or
referenced herein since the date hereof. All summaries of the documents referred to in this Official Statement
are made subject to the provisions of such documents, respectively, and do not purport to be complete
statements of any or all of such provisions.
Stabilization of Prices. In connection with this offering, the Underwriter may overallot or effect
transactions which stabilize or maintain the market price ofthe 2006 Bonds at a level above that which might
otherwise prevail in the open market. Such stabilizmg, if commenced, may be discontinued at any time. The
Underwriter may offer and sell the 2006 Bonds to certain dealers and others at prices lower than the public
offering prices set forth on the inside cover page hereof and said public offering prices may be changed from
time to time by the Underwriter.
THE 2006 BONDS HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933,
AS AMENDED, IN RELIANCE UPON AN EXEMPTION FROM THE REGISTRA TIONREQUlREMENTS
CONI AINED IN SUCH ACT. THE 2006 BONDS HAVE NOT BEEN REGISTERED OR QUALIFIED
UNDER THE SECURITIES LAWS OF ANY STATE.
TABLE OF CONTENTS
~
INTRODUCTION
General
The Authority
The Community Facilities District
Purpose ofthe 21)( 16 Bonds
Sources of Payment for the 2()()6 Bonus
Bond Insurance for Series A Bonds
Appraisal
Tax Exemption
Risk Factors Associated with Purchasing the 2006 Bonds
Forward Looking Statements
Professionals Involved in the Offering
Other Information
1
1
1
1
2
3
3
CONTINUING DISCLOSURE
-+
5
5
5
5
6
6
PLAN C IF FINANCE
6
ESTIMATED SOURCES AND USES OF FUNDS 7
THE 2006 BONDS 7
Description ofthe 2006 Bonds 7
Terms of Redemption 8
Transfer and Exchange of 2006 Bonds 11
Book-Entry and DTC 12
Debt Servi"ce Schedule 13
SECURITY FOR THE 21)( 16 BONDS 15
General 15
Special Taxes 15
Rate and Method 16
Special Taxes and the Teeter Plan 18
Proceeds of Foreclosure Sales 18
Special Tax Fund 19
Bond Fund 20
Reserve Fund 21
Investment of Moneys in Funds 22
Additional Bonds for Refunding Purposes Only 22
BC lND INSURANCE FC lR THE SERlES A BC lNDS 22
[Insurer] Municipal Bond Insurance Policy 22
Insurer] 23
THE AUTHORITY 23
Authority for Issuance 23
THE COMMUNITY F AC1L1TlES DISTRICT 2-+
Location and Description of the District 24
Specific Plan 25
Environmental Conditions 26
Development Agreement 26
Settlement of Litigation Regarding Development 2R
Acquisition of Improvements 2R
Property Ownership 2R
Description of Project 3()
Special Tax Collections 3-+
Direct and Overlapping Debt 3-+
Estimated Value-to-Lien Ratios and Estimated Special Tax Allocation by Property Ownership 37
Overlapping Community Facilities and Assessment Districts 40
Other Overlapping Direct Assessments -+0
Estimated Assessed Value-to-Lien Ratios -+0
Appraised Property Value -+0
+
BONDOWNERS' RISKS
Risks of Real Estate Secured Investments Generally
Concentration of Ownership .
Adjustable Rate and Unconventional Mortgage Structures
Failure to Develop Properties
Special Taxes Are Not Personal (lbligations
The 21)( 16 Bonds Are Limited Obligations ofthe District
Appraised Values
Land Development
Burden of Parity Liens, Taxes and Other Special Assessments on the Taxable Property
Disclosure to Future Purchasers
Government Approvals
Local, State and Federal Land Use Regulations
Endangered and Threatened Species
Hazardous Substances
Levy and Collection ofthe Special Tax; Insufficiency ofthe Special Tax
Exempt Properties
Depletion of Subaccounts within the Reserve Fund
Potential Delay anu Limitations in Foreclosure Proceedings
Bankruptcy and Foreclosure Delay
Payments by FDIC and Other Federal Agencies
Payment of Special Tax Not a Personal Obligation ofthe Property Owners
Factors Affecting Parcel Values and Aggregate Value
No Acceleration Provisions
Community Facilities District Formation
Billing of Special Taxes
Collection of Special Tax
Right to Vote on Taxes Act
Ballot Initiatives anu Legislative Measures
Limited Secondary Market
Loss of Tax Exemption
Limitations on Remedies
42
42
42
43
43
44
44
44
44
45
45
46
46
46
46
47
4R
4R
4R
49
50
51
51
'i7
'i7
'i7
'i7
co
n
53
54
54
54
SPECIAL RISK CONSIDERATIONS SPECIFIC TO THE SERIES B BONDS
Subordination of Series B Bonds
Limited Secondary Market
No Ratings of Series B Bonds
No Insurance; Remedies Controlled by [INSURER]
54
54
54
55
55
LEGAL MATTERS
Legal Opinion
Tax Exemption
No Litigation
No General Obligation ofthe Authority or the District
55
55
55
55
56
RATINGS
Ratings on Insured Bonds
56
56
UNDERWRITING
56
PROFESSIONAL FEES
MISCELLANEOUS
57
57
APPENDL'( A
APPENDL'( B
General Information About the City of Temecula
Rate and Method of Apportiorunent for Community Facilities District
No. 111-2 (Harveston)
Supplemental Report and Swnmary Appraisal Report
Swnmary of Certain Provisions ofthe Fiscal Agent Agreement
Form of Community Facilities District Continuing Disclosure Agreement
Form of Opinion of Bond Counsel
Book-Entry System
Specimen Municipal Bond Insurance Policy
Boundary Map
A-I
B-1
C-I
D-I
E-I
G-I
I-I
H-I
I-I
APPENDL'( C
APPENDL'( D
APPENDL'( E
APPENDL'( F
APPENDL'( G
APPENDL'( H
APPENDL'( 1
-11-
REGIONAL LOCATION MAP
[Regional Map to be provided by Stone & Youngberg LLC]
-111-
AERIAL MAP
[Aerial Map to be provided by Stone & Youngberg LLC']
-lV-
OFFICIAL STATEMENT
TEMECULA PUBLIC FINANCING AUTHORITY
COMMUNITY FACILITIES DISTRICT NO. 01-2 (HARVESTON)
$14,490,000' 2006 SPECIAL TAX REFUNDING BONDS, SERIES A AND
$3,220,000' 2006 SPECIAL TAX REFUNDING BONDS, SUBORDINATE SERIES B
INTRODUCTION
This introduction is not a summary afthis Official Statement. It is onZv a brief description qf and guide
to, and is qual(fied by, more complete and detailed iJ?formation contained in the entire OjJicial Statement,
including the cover page and appendices hereto, and the documents summarized or descrihed herein. A Jldl
review should he made afthe entire Official Statement. The ajfering afthe 200n Bonds to potential im1estors is
made on1;v hy means afthe entire Official Statement.
General
This (JjTicial Statement, including the cover page and appendices hereto, is provided to furnish
information regarding the issuance and sale by the Temecula Public Financing Authority (the "Authority"), on
behalf of the Temecula Public Financing Authority ('ommunity Facilities District No 111-2 (Harveston) (the
"District" or the "Community Facilities District") of $14,490,000' aggregate principal amount ofthe Temecula
Public Financing Authority Community Facilities District No. 01-2 (Harveston) 2006 Special Tax Refunding
Bonds, Series A (the "Series A Bonds"), and $3,220,000' aggregate principal amount ofthe 2006 Special Ta,
Refunding Bonds, Subordinate Series B (the "Series B Bonds," collectively, the "2006 Bonds").
The 2006 Bonds are issued pursuant to the Act (as defined below) and the Fiscal Agent Agreement, dated
as of September I, 2006 (the "Fiscal Agent Agreement"), by and between the Authority, for and on behalf ofthe
District, and U S Bank National Association, as Fiscal Agent (the "FiscaIAgent"), and are payable from proceeds
of Special Taxes (as defined herein) levied on property within the District according to the rate and method of
apportionment of special tax approved by the l)ualified electors of the District and by the Authority, acting as the
legislative body of the District. See "THE AUTRe JRlTY Authority for Issuance" herein. The Authority may
issue additional bonds ("Parity Bonds") secured under the Fiscal Agent Agreement on a parity with the Series A
Bonds for refunding purposes only See "SE('URlTY F( JR THE 211116 B( JNDS Additional Bonds for Refunding
Purposes (Jnly "
Capitalizeu terms useu in this ()ftlcial Statement anu not otherwise uefineu herein have the meanings given
such terms in the Fiscal Agent Agreement, some of which are set forth in Appendix D hereto "Swnmary of Certain
Provisions of the Fiscal Agent Agreement."
The Authority
The Authority was formed on April 1 0, 2001, pursuant to a Joint Exercise of Powers Agreement between
the City of Temecula, California (the "City") and the Redevelopment Agency of the City of Temecula, in
accordance with Articles 1 through 4 (commencing with Section 651 II I) of (,hapter 5, Division 7, Title 1 ofthe
Government Code ofthe State of California. See "THE AUTHORlTY" and "THE COMMUNlTY F AC1L1TlES
D1STRWT Location and Description ofthe District"
The Community Facilities District
The District was formed and established by the Board of Directors ofthe Authority on March 26, 21 II 12,
pursuantto the Mello-Roos('ommunity Facilities Act of! 9R2, as amended (Section53311 et sel). ofthe ('alifornia
Government Coue, anu referreu to herein as the "AcC), following a public hearing anu a lanuowner election at
which the qualified electors of the District, by more than a two-thirds vote, authorized the District to incur bonded
indebtedness in the aggregate not-to-exceed amount of $25,1 II II 1,1 II III, and approved the levy of special taxes (the
"Special Taxes") on certain real property located in the District.
Once duly established, a communities facilities district is a legally constituted governmental entity
established for the purpose of financing specific facilities and services within defined boundaries. Subject to
approval by a two-thirds vote of the qualified voters within a communities facilities district and compliance with
*Preliminary, subject to change.
1
the provisions of the Act, a communities facilities uistrict may issue bonus anu may levy anu collect special taxes
to repay such bonueu inuebteuness anu interest thereon.
Subsequent thereto, the Temecula Public Financing Authority ('ommunity Facilities District No. 113-6
(Harveston11) ("Community Facilities District No 03-6 (Harveston 11)"). Community Facilities District No 03-6
was formed and established by the Board of Directors ofthe Authority on November 25, 2003, pursuant to the
Mello-Roos Community Facilities Act of1982, as amended (Section 53311 et seq. ofthe California Government
Code, and referred to herein as the "Act"), following a public hearing and a landowner election at which the then
qualified electors of the District, by more than a two-thirds vote, authorized the District to incur bonded
indebtedness in the aggregate not-to-exceed amount of $5,500,000, and approved the levy of a special tax by on
certain real property located in the District for the payment of debt service and administrative expenses of the
District. Community Facilities District No ()3-6 is coterminous with part of Community Facilities District ()1-2
and issued bonds in the amount of $4,845,000 on September 9,2004 These special taxes are not available to pay
uebt service on the Series A Bonu or Series B Bonus but are parity lien levels with ad valorem taxes.
The District is compriseu of approximately 51 () gross acres oflanu locateu in the northwest portion of the
(,ity, in the southwesterly portion of the ('ounty of Riverside (the "('ounty"). The District is located to the
northeast of the 1-15 Freeway, northwest of Winchester Road, and westerly from Margarita Road. The District is
part of a master-planned community that includes a large residential area surrounding the 17 acre lake and park
in the center of the community The master-planneu community is planneu for a total of approximately 2,()361
residential units, including approximately 1,6211 single-family dwelling units, a 300 unit apartment complex and
an approximately 115 unit retirement residence. In addition, there is expected to be a 2.45 acre retail center in
the center ofthe community There is a private Lake House/Village Club, a park surrounding the lake connected
to a paseo to the 20 acre community park, a child care center, a community facility and an elementary school.
The master-planned community is planned to be developed in four phases, which are referred to as
Phase 1, Phase 2, Phase 2B and Phase 3 and comprise the central portion ofthe community The single-family
detached residential portion of Phase 1 is complete with 445 homes built and occupied. A 31 II I-unit apartment site
is substantially completed and occupancies have commenced, and the retirementresidence is expected to be under
construction in the near future. In addition, Phase 1 includes the completed lake and Lake Park, the Welcome
('enter!C'ommercial Site, the completed Lake House/Village (,lub, the child care center and the Y sabel Barnett
Elementary School.
Phase 2 is expected to include 5 different tracts or neighborhoods of homes, containing a total of 596
homes anu two of these tracts or prouuct types are a carryover from Phase 1 All 5 are unuer construction. Phase
2 also incluues the 2() acre community park which is now complete anu incluues a lighteu soccer fielu anu two
lighted baseball fields.
Phase 2B will include two different tracts containing a total of 198 detached homes, though only 191 of
the lots are included within the boundaries of the District and included in the Appraisal. The models are now
complete and construction of the production homes is underway
Phase 3 will include 4 dilTerent tracts containing a total of 382 homes, including 64 attached homes and
318 detached homes. The land is currently in blue-top condition and construction began in the middle ofthe year
There is also an approximately III 75 acre commercial site at the southerly end of the community and extending
southerly to the 1-15 Freeway Rough grading ofthis site is almost complete though the specific development and
timing of construction has not yet been uetermineu.
As of May 11, 2()( )6, there were ten maj or lanuowners within the District, 5 of which are merchant builuers
who have projects unuerway Baseu on ownership information as of the May g, 2()( )6, uate of value of the
Supplemental Report dated May 8, 21 II 16 to the Summary Appraisal Report dated February 3, 21 II 16, approximately
[ '6] ofthe estimated Special Taxes in Fiscal Year 2111 16-117 were payable by individual homeowners.
Purpose ofthe 2006 Bonds
The 2006Bonds are being issued, together with certain funds on hand, (i) to refund on September 1, 2006,
the $17,300,000 aggregate outstanding principal amount of the District's Special Tax Bonds, 2002 Series A (the
"Prior Bonds"), (ii) to pay the costs of issuing the 2006 Bonds, (iii) to establish a Senior Subaccount within the
Reserve Funu anu acquire a reserve surety for the Series A Bonus anu (iv) to establish a Suboruinate Subaccount
within the Reserve Fund for the Series B Bonds. See "PLAN OF FINANCE" herein.
Estimated total of 2,1136 includes 7 lots in Phase 2B which are not within the boundaries of the District.
2
Sources of Payment for the 2006 Bonds
The Series ABonds are secured by and payable from a first pledge (which pledge shall be effected in the
manner and to the extent provided in the Fiscal Agent Agreement) of all of the Special Tax Revenues and all
moneys deposited in the Bond Fund (including the Special Tax Prepayments Accounttherein) and, until disbursed
as provided in the Fiscal Agent Agreement, in the Special Tax Fund, subject in any event to the priority for the
disposition of amounts in the Bond Fund for the payment of debt service due on the Series A Bonds and to
replenish the Senior Subaccount oftheReserve Fund to the amountofthe Senior Subaccount Reserve Requirement
prior to the use of amounts therein for the payment ofJebt service uue on the Series B Bonus anu to make ueposits
tothe Subordinate Subaccount oftheReserve Fund. The Bonds, other than the SeriesB Bonds, are further secured
by a first pledge of all ofthe moneys deposited in the Senior Subaccount of the Reserve Fund, and the Series B
Bonds are further secured by a first pledge of all of the moneys deposited in the Subordinate Subaccount of the
Reserve Fund. "Special Tax Revenues," is defined in the Fiscal Agent Agreement as the proceeds ofthe Special
Taxesreceived by the Authority, including any scheduled payments and any prepayments thereof interest thereon
anu proceeus of the reuemption or sale of property sold as a result offoreclosure ofthe lien ofthe Special Taxes
to the amount ofsaiJ lien anu interest thereon. "Special Tax Revenues" uo not incluue any penalties collecteu in
connection with uelinyuent Special Taxeswhich may be forgiven or Jisposeu of by the Authority in its discretion,
and if collected, will be used in a manner consistent with the Act "Special Taxes" are defined in the Fiscal Agent
Agreement as the special taxes levied within the District pursuant to the Act, the ordinance adopted by the
legislative body ofthe District providing for the levy ofthe Special Taxes and the Fiscal Agent Agreement The
Special Taxes are levied in accordance with the Rate and Method of Apportionment of Special Tax (the "Rate and
Method") recorded as a lien on the Property pursuant to the Notice of Special Tax Lien. Special taxes of
Community Facilities District No 03-6 cannot be used to pay debt service on the 2006 Bonds.
Pursuantto the Act, the Rate and Method, the Resolution of Formation (as defined herein) and the Fiscal
Agent Agreement, so long as any 2006 Bonds are outstanding, the Authority will annually levy the Special Tax
against the land within the District not exempt from Special Taxes under the Act and the Rate and Method
("Taxable Property") in accordance with the proceedings for the authorization and issuanceofthe 21 (( 16 Bonds and
with the Rate and Method, to make provision for the collection of the Special Tax in amounts which will be
suHicient to (a)(i) pay debt service due on all 21((16 Bonds for the calendar year that commences in such Fiscal
Year; (ii)pay AdrninistrativeExpenses; and (iii) pay any amountsreljuired to replenish the Senior Subaccount and
Subordinate Subaccount ofthe Reserve Fund for any Outstanding Bonds; less (b) a credit for funds available to
reduce the annual Special Tax levy under the Fiscal Agent Agreement See "SECURITY FOR THE 21 (( 16
BONDS - Special Taxes and the Teeter Plan" herein.
The Rate and Method exempts from the Special Tax up to 16.5 acres of Property Owner Association
Property and up to 93.3 acres of Public Property located within the District See "SECURITY FOR THE 2006
BONDS Rate and Method" and "BONDOWNERS' RISKS Exempt Properties."
The Authority has also covenanted in the Fiscal Agent Agreement to cause foreclosure proceedings to be
commenced and prosecuted against certain parcels with delinquent installments of the Special Tax. For a more
detailed description of the foreclosure covenant, see "SECURITY FOR THE 2006 BONDS - Proceeds of
Foreclosure Sales."
NEITHER THE FAITH AND CREDIT NOR THE TAXING POWER OF, THE DISTRICT
(EXCEPT TO THE LIMITED EXTENT DESCRIBED HEREIN) OR THE ST ATE ORANY POLITICAL
SUBDIVISION THEREOF IS PLEDGED TO THE PAYMENT OF THE 2006 BONDS. OTHER THAN
THE SPECIAL TAXESOF THE DISTRICT,NOTAXES ARE PLEDGED TO THE PAYMENT OF THE
2006 BONDS. THE 2006 BONDS ARE NOT A GENERAL OBLIGATION OF THE AUTHORITY, BUT
ARE LIMITED OBLIGATIONS OF THE AUTHORITY FOR THE DISTRICT PAYABLE SOLELY
FROM THE SOURCES PLEDGED UNDER THE FISCAL AGENT AGREEMENT.
Bond Insurance for Series A Bonds
Payment ofthe principal and interest when due on the Series A Bonds will be insured by a municipal bond
insurance policy to be issued simultaneously with the delivery ofthe Series A Bonds by [Insurer] ("[INSURER]").
See 'BOND INSURANCE FOR SERIES A BONDS," "CONCLUDING lNFORMA nON - Ratings on Insured
Bonds" and APPENDL'( H - SPECIMEN MUNICIPAL BOND INSURANCE POLlCY" herein. The Series B
Bonus will not be insureu anu are not rateu.
3
Appraisal
An appraisal prepared by an MAl appraiser of the land and existing improvements for the development
within the District, dated February 3, 21)( 16, as supplemented by a Supplemental Report dated May 11, 21)( 16
(collectively, the "Appraisal"), has been prepared by Stephen G White, MAl of Fullerton, California (the
"Appraiser") in connection with issuance ofthe 2006 Bonds. The purpose ofthe Appraisal was to estimate the
aggregate minimum market value of the "as is" condition of all of the taxable property, as segregated by property
type, separate tracts of homes and/or ownership 11 is noted that valuation of the completed-sold homes for the
built-out tracts is baseu on the most recent sale price for each home (original builder sale or more recent sale), or
the assessed value where a sales price was not available. The Appraisal also reflects the proposed public bond
financing, with the tax rates to the homeowners of up to approximately 1.90./0., including special taxes.
The Appraisal is based on certain assumptions and limiting conditions. Subject to these assumptions and
limiting conditions, the Appraiser estimated that the fee simple minimum market value of the Taxable Property
within the District (subject to the lien ofthe Special Taxes), as of May R, 21)(16, was as follows
Built Out Tracts - Phase 1
Owner Occupied
Owner Occupied
Owner Occupied
Owner Occupied
Owner Occupied
Sublola!
TT;Jc:tS 1 Tnnp.T ('()nstl11c:ti()n - Pn;Jsp.? ;-tnn ?R
Greystone Homes!!!
William Lyon Homes, Inc.
Lennar Homes
Greystone Homes
Substantially Owner Occupied (1
completed home owned by PLC Harveston
LLC Christopher Homes)
Acacia Credit Flmd 9-A LLC Meritage
Homes of California, Inc.
Acacia Credit Flmd 9-A LLC Meritage
Homes of California, Inc.12)
Sublola!
Other Propertiesi") - Phase 1 and 3
MW Housing Partners III L.P
The Morgan Group
Temecula Retirement Residence
Harveston LLC
Winchester Hills L LLC
Sublola!
Tola!
Tract Name/Proposed
Tract Use
No of Home
Sites/Units
No. of
Compleled-Sold
Homes as of
May 8. 2006
Minimum
Market Value
Sherbourne
Wellsley Court
Easton Place
Lake Front Cottages
Chaiham
70
70
88
139
..n.
445
$32,330,000
34,040,000
36,1 70,000
58,430,000
44040000
$205,010,000
70
70
88
139
..n.
445
A<;hville 113 43
Sava:nnah 162 0
Auburn Lane 119 109
Sausalito 109 109
Walden 93 92
Charleston 106 0
Aberdeen ..22 ---1.
787 356
No.ofDU
or Acs.
Residential Land 382 DU
Cape May Apartments 300 DU
Retirement Residence Site 2.29 ac.
Commercial Site! 2.45 ac.
Welcome Center
Phase 3 - Commercial 111.75 "c.
Acreage Site
$24,880,000
18,540,000
45,930,000
47,750,000
46,270,000
19,910,000
1795000Q.
$221,230,000
$63,350,000
29,700,000
930,000
2,000,000
20000000
$121,980,000
$548,220,000
4
,f,
53 lots are subject to an option agreement between Greystone Homes amI LEN-1nlaml, LLC [Update
takedown information]
The 85 home sites excludes 7 home sites which are not within the boundaries of the District.
\21
The fee simple minimum market value includes the value of completed-sold homes, completed-unsold
homes, homes under construction, vacant residential lots and acreage of the vacant retirement residence site, the
commercial site with the welcome center amI the vacant commercial acreage. The minimum market values
reported in the Appraisal result in an estimated overall value-to-lien ratio of approximately 24.33 1*, calculated
with respect to the 2006 Bonds and including $4.825.636 of the $4.845.000 special tax bonds issued by Community
Facilities District No. 03-6 (Harvestonl1!. The value-to-lien ratios of individual parcels will differ from the
foregoing aggregate value-to-lien ratio See" - Estimated Value-to-Lien Ratios and Estimated Special Tax
Allocation by Property Ownership," Table 6 and" - Value-to-Lien Analysis" in the "THE COMMUNlTY
FACILlTlES DlSTR1CT" section. See "BONDOWNERS' RISKS - Appraised Values," "BONDOWNERS'
RISKS - Burden of Parity Liens, Taxes and Other Special Assessments on the Taxable Property" herein and
APPENDL'( C "Supplemental Report and Swnmary Appraisal Report" appended hereto for further information
on the Appraisal and for limiting conditions relating to the Appraisal.
Tax Exemption
Assuming compliance with applicable reyuirements ofthe Internal Revenue Coue of 19R6, in the opinion
ofBonu Counsel, interest on the 2()()6 Bonus will not be incluuable in the gross incomes ofthe Bonuowners for
federal income tax purposes although it may be includable in the calculation for certain taxes. Also in the opinion
of Bond Counsel, interest on the 211116 Bonds will be exempt from State personal income taxes. See "LEGAL
MATTERS - Tax Exemption" herein.
Risk Factors Associated with Purchasing the 2006 Bonds
Investment in the 2006 Bonds involves risks that may not be appropriate for some investors. See the
sectionofthis Official Statement entitled "BONDOWNERS' RISKS" for a discussion of certainrisk factors which
should be considered, in addition to the other matters set forth herein, in considering the investment quality of the
211116 Bonds.
Forward Looking Statements
Certain statements incluueu or incorporateu by reference in this Official Statement constitute
"forwaru-Iooking statements" within the meaning of the Uniteu States Private Securities Litigation Reform Act
of1995, Section 21E ofthe United States Securities Exchange Act of1934, as amended, and Section 27A of the
United States Securities Act of 1933, as amended. Such statements are generally identifiable by the terminology
useu such as a "plan," "expect," "estimate," "project," "buuget" or similar worus. Such forwaru-Iooking
statements include, but are not limited to certain statements contained in the information under the caption "THE
COMMUNlTY F ACILlTlES DlSTR1CT" herein.
THE ACHlEVEMENT OF CERTAIN RESUL TS OR OTHER EXPECTATIONS CONTAINED IN
SUCH FORWARD-LOOKlNG STATEMENTS lNVOLVE KNOWN AND UNKNOWN RISKS,
UNCERTAlNTlES AND OTHER FACTORS WHICH MA YC AUSE ACTUAL RESUL TS, PERFORMANCE
ORACHlEVEMENTS DESCRIBED TO BE MA TERlALL Y DIFFERENT FROM ANY FUTURE RESUL TS,
PERFORMANCE OR ACHlEVEMENTS EXPRESSED OR IMPLlED BY SUCH FORWARD-LOOKlNG
STATEMENTS NEITHER THE AUTHORlTYNOR THE DlSTR1CTPLANS TO ISSUE ANY UPDATES OR
REV1SlClNS T(l THEF(lRWARD-LCl(lKlNG STATEMENTS SETF(lRTH1NTHlS (lFF1C1AL STATEMENT
Professionals Involved in the Offering
US Bank, National Association, Los Angeles, California, will serve as the fiscal agent, paying agent,
registrar, authentication, transfer agent, anu uissemination agent for the 2()()6 Bonus anu will perform the functions
required of it under the Fiscal Agent Agreement for the payment of the principal of and interest and any premium
on the 2006 Bonds and all activities related to the redemption ofthe 2006 Bonds. Quint & Thimmig LLP, San
Francisco, California is serving as Bonu Counsel to the Authority Richarus, Watson & Gershon, A Professional
Corporation, is serving as special counsel to the Authority McFarlin & Anderson LLP, Lake Forest, California,
is acting as Disclosure Counsel to the District. Stone & Youngberg LLC is acting as Underwriter and as
*Preliminary, subject to change.
5
Remarketing Agent in connection with the issuance anu ueliveryof the 2()()6 Bonus. Bonu Counsel anu Disclosure
Counsel have serveu as counsel to the Unuerwriter in other transactions.
Psomas, Riversiue, California, acteu as special tax consultant to the District. Fieluman, Rolapp anu
Associates, Irvine, California, acted as Financial Advisor to the Authority The appraisal work was done by
Stephen G White, MAl of Fullerton, California.
Payment qf the fees and expenses of Bond Counsel, Disclosure Counsel, the Fiscal Agent and the
Underwriter, and ofa portion of the fees and expenses of the Financial Advisor and the Special Ta.:'( Consultant,
is contingent upon the sale and delivery of the 2006 Bonds.
Other Information
This ()fficial Statement speaks only as of its uate, anu the information containeu herein is subject to
change. Brief uescriptions of the 2()()6 Bonus, certain sections of the Fiscal Agent Agreement, security for the
21)(16 Bonds, special risk factors, the Authority, the District, Harveston, LLC, LEN-Inland, LLC, the Merchant
Builders, other landowners, information regarding the development plan for the property within the District and
other information are included in this Official Statement. Such descriptions and information do not purport to be
comprehensive or uefinitive. The uescriptions herein of the 2()()6 Bonus, the Fiscal Agent Agreement, anu other
resolutions anu uocuments are qualifieu in their entirety by reference to the complete texts ofthe 2()()6 Bonus, the
FiscalAgentAgreement, such resolutions and other docwnents. All such descriptions are further qualified in their
entirety by reference to laws and to principles of equity relating to or affecting generally the enforcement of
creditors' rights. Copies of such documents may be obtained upon written request from the Temecula Public
Financing Authority, 43200 Business Park Drive, Temecula, California 92590 The Authority may charge for
copying and mailing any documents requested.
CONTINUING DISCLOSURE
TheAuthority. The Authority has covenanted for the benefit ofthe owners ofthe 21)( 16 Bonds to provide
annually certain financial information anu operating uata relating to the 2()()6 Bonus, the District, ownership anu
development of the property in the District which is subject to the Special Tax, the occurrence of delinquencies
in payment of the Special Tax, anu the status of foreclosure proceeuings, if any, respecting Special Tax
delinquencies (the "Authority Annual Report"), and to provide notice of the occurrence of certain enwnerated
events, if material. Such information is to be provided by the Authority not later than eight months aner the end
ofthe Authority's Fiscal Year (which currently would be March I), commencing with the report due for the 21)( 16-
07 Fiscal Year The Authority, the City and related entities have never failed to comply in all material respects
with any previous unuertakings with regaru to saiu Rule to proviue annual reports or notices of material events.
Filing o.fDistrict Annuol Reports; Form o.fReports. Each Authority Annual Report will be filed by the
Fiscal Agent, as dissemination agent, with each Nationally Recognized Municipal Securities Information
Repository and with each State Repository, if any These covenants have been made in order to assist the
Underwriter in complying with Securities and Exchange Commission Rule 15c2-12(b)( 5); provided. however, a
default under the Authority Continuing Disclosure Agreement will not, in itself, constitute a default under the
Fiscal Agent Agreement, and the sole remedy under the Authority Continuing Disclosure Agreement in the event
of any failure ofthe Authority or the Dissemination Agent, as applicable, to comply with the Authority Continuing
Disclosure Agreement will be an action to compel performance. For a complete listing of items of information
which will be provided in the Authority Annual Reports, see APPENDL'( E "Form of Community Facilities
District Continuing Disclosure Agreement."
PLAN OF FINANCE
Paymentof200fiBonds. The proceeds ofthe 21)( 16 Bonds in the amount of$ , together with
other available moneys, will be applied on September 1,2006, to refund $1 7,310,000 ofthe District's Prior Bonds.
Amounts in the Refunding Fund will be held in cash, and which, together with other available cash to be held are
sufficient to pay the principal of and interest on the Prior Bonds to on September I, 2006 The moneys and
securities held in the Refunding Fund are pledged to the payment of Prior Bonds. The moneys deposited with the
Fiscal Agent nor the interest thereon will be pledged to the payment ofthe 21)( 16 Bonds.
6
The balance ofthe proceeus ofthe 21)(16 Bonus will be useu(i)to pay the costs of issuing the 21)(16 Bonus
anu (ii) to establish a Senior Subaccount within the Reserve Funu amI acquire a reserve surety for the Series A
Bonds and to establish a Subordinate Subaccount within the Reserve Fund for the Series B Bonds.
The Authority has entered into a Joint Community Facilities Agreement between the Authority and the
City whereby the City agrees to accept dedication of certain of the Improvements. The Authority has been advised
that the Improvements are substantially complete. See "THE COMMUNITY FACILITIES DISTRICT -
Acquisition of Improvements" regarding the Improvements which are to be acquired by the Authority from
Harveston, LLC pursuant to the Acquisition Agreement between the Authority anu Harveston, LLC
ESTIMATED SOURCES AND USES OF FUNDS
The proceeus from the sale ofthe 21)( 16 Bonus will be uepositeu into the respective accounts anu funus
establisheu by the Authority unuer the Fiscal Agent Agreement, as follows
Series A Bonus Series B Bonus Total
Sources:
Principal Amount of 21)( 16 Bonus
Prior Bonu Funus
Less. Underwriter's Discount
$
$
$
'.
Total Sources
$
$
$
Uses:
Deposit into Senior Subaccount within the
Reserve Fundi]'
Deposit into Subordinate Subaccount within
the Reserve Fund(Z)
Deposit into Refunding Fund
$
$
$
Deposit into Cost of Issuance Funu \31
Total Uses
$
$
$
(11
See "PLAN OF FINANCE" above. _0/0 of the Reserve Requirernentwill be provided through the Series A Reserve
Surety
Equal to the Series B Reserve Requirement as of the date of issuance of the Series B Bonds.
Includes, among other things, the fees and expenses of Bond COlillseL Disclosure COlillseL the financial advisor, the
Special Ta.'\: Consultant, the Appraiser, and the Fiscal Agent, and the cost of printing the Preliminary and final Official
Statements.
12)
'"
THE 2006 BONDS
Description of the 2006 Bonds
The 2006 Bonds will be dated their date of delivery and will bear interest at the rates per annum set
forth on the inside cover page hereof, payable semi-annually on each March 1 and September 1, commencing
on March 1,2007 (each, an "Interest Payment Date"), and will mature in the amounts and on the dates set
forth on the inside cover page hereof. The 2006 Bonds will be issued in fully-registered form in
denominations of $5,000 each or any integral multiple thereof and when delivered, will be registered in the
name of Cede & Co., as nominee of The Depository Trust Company ("DTC"), New York, New York. DTC
will act as securities depository for the 2006 Bonds. Ownership interests in the 2006 Bonds may be
purchased in book-entry form only, in denominations of $5,000 or any integral multiple thereof within a
single maturity. So long as the 2006 Bonds are held in book-entry form, principal of, premium, if any, and
interest on the 2006 Bonds will be paid directly to DTC for distribution to the beneficial owners of the 2006
Bonds in accordance with the procedures adopted by DTC. See "THE 2006 BONDS - Book-Entry and
DTC."
7
The 2006 Bonds will bear interest at the rates set forth on the inside cover hereof payable on the
Interest Payment Dates in each year. mterest will be calculated on the basis of a 360-day year composed of
twelve 30-day months. Each 2006 Bond shall bear interest from the Interest Payment Date next preceding
the date of authentication thereof unless (i) it is authenticated on an Interest Payment Date, in which event
it shall bear interest from such date of authentication, or (ii) it is authenticated prior to an mterest Payment
Date and after the close of business on the Record Date (as defined below) preceding such Interest Payment
Date, in which event it shall bear interest from such Interest Payment Date, or (iii) it is authenticated prior
to the Record Date preceding the first mterest Payment Date, in which event it shall bear interest from the
date of issuance of the 2006 Bonds; provided. however, that if at the time of authentication of a 2006 Bond,
interest is in default thereon, such 2006 Bond shall bear interest from the Interest Payment Date to which
interest has previously been paid or made available for payment thereon.
So long as the 2006 Bonds are in book-entry form, the principal of, and interest and premium, if any,
payable on the 2006 Bonds shall be payable when due, by wire transfer ofthe Fiscal Agent to DTC, which
will in turn remit such principal, interest and premium, if any, to its Participants (as described in APPENDLX
G "Book-Entry System"), which Participants will in turn remit such principal, interest and premium, if any,
to the Beneficial Owners (as described in APPENDLX G - "Book-Entry System") of the 2006 Bonds as
described below under APPENDIX G - "Book-Entry System."
In the event that the 2006 Bonds are not registered in the name of Cede & Co., as nominee ofDTC
or another eligible depository as described below, both the principal and any premium on the 2006 Bonds
shall be payable by checkin lawful money of the United States of America upon surrender of the 2006 Bonds
at the principal office of the Fiscal Agent as specified in the Fiscal Agent Agreement; and interest on the
2006 Bonds (including the final interest payment upon maturity or earlier redemption) is payable by check
of the Fiscal Agent mailed on the Interest Payment Dates by first class mail to the registered owner thereof
at such registered owner's address as it appears on the registration books maintained by the Fiscal Agent at
the close of business on the Record Date preceding the Interest Payment Date, or by wire transfer to an
account within the United States of America made on such Interest Payment Date upon written instructions
of any Owner of $1,000,000 or more in aggregate principal amount of 2006 Bonds received before the
applicable Record Date, which instructions shall continue in effect until revoked in writing, or until such
2006 Bonds are transferred to a new Bondowner.
The registered owner of any 2006 Bond will be the person or persons in whose name or names a
2006 Bond is registered on the registration books kept for that purpose by the Fiscal Agent in accordance
with the terms of the Fiscal Agent Agreement. The "Record Date" with respect to any 2006 Bonds, means
the fifteenth day of the month next preceding the month of the applicable Interest Payment Date, whether
or not such day is a Business Day.
So long asthe 2006 Bonds are in book-entry-only form, all references in this Official Statement
to the owners or holders of the 2006 Bonds means DTC and not the Beneficial Owners.
Terms of Redemption
The 2006 Bonds are subject to redemption upon the circumstances, on the dates and at the prices set
forth as follows:
Optional Redemption of Series A Bonds. The Series A Bonds are subject to optional redemption
prior to their stated maturity on any Interest Payment Date, as a whole, or in part among maturities of the
Series A Bonds so as to maintain substantially level debt service on the Series A Bonds and by lot within a
maturity, at a redemption price (expressed as a percentage of the principal amount of the Series A Bonds to
be redeemed), as set forth below, together with accrued interest thereon to the date fixed for redemption:
* Preliminary, subject to change.
8
Redemption Date
September 1, 200
September 1, 200
September 1, 20
Date thereafter
and March L 20
and March L 20
and any Interest Payment
Redemption Price
102%
101
100
Optional Redemption of Series B Bonds'. The Series B Bonds are subject to optional redemption
prior to their stated maturity on any Interest Payment Date, as a whole, or in part among maturities of the
Series B Bond so as to maintain substantially level debt service on the Series B Bonds and by lot within a
maturity, at a redemption price (expressed as a percentage ofthe principal amount of the Series B Bonds to
be redeemed), as set forth below, together with accrued interest thereon to the date fixed for redemption:
Redemption Date
Any mterest Payment Date from and
including March 1, 2007 to and including
March L
September 1, 200 and March L 20
September 1, 20 and March L 20
September 1, 20_ and any Interest Payment
Date thereafter
Redemption Price
103%
102
101
100
Afandatory Sinking Payment Redemption of Series A Bonds. The Series A Bonds maturing on
September 1, 20 , are subjectto mandatory sinking payment redemption in part on September 1, 20 , and
oneach September 1 thereafter to maturity, by lot, at a redemption price equal to the principal amount thereof
to be redeemed, together with accrued interest to the date fixed for redemption, without premium, from
sinking payments as follows:
Redemption Date
(September 1)
20
20
20
20
20_ (maturity)
Sinking Payments
$
The Series A Bonds maturing on September 1, 2036, are subject to mandatory sinking payment
redemption in part on September 1, 20_, and on each September 1 thereafter to maturity, by lot, at a
redemption price equal to the principal amount thereof to be redeemed, together with accrued interest to the
date fixed for redemption, without premium, from sinking payments as follows:
Redemption Date
(September 1)
20
20
20
2036 (maturity)
Sinking Payments
$
The amounts in the foregoing tables shall be reduced to the extent practicable so as to maintain level
debt service on the Series A Bonds as a result of any prior partial redemption of the Series ABonds pursuant
9
to an optional redemption or mandatory redemption from prepaid Special Taxes as specified in writing by
the Treasurer to the Fiscal Agent.
Afandatory Sinking Payment Redemption of Series B Bonds. The Series B Bonds maturing on
September 1, 20 , are subjectto mandatory sinking payment redemption in part on September 1, 20 , and
oneach September 1 thereafter to maturity, by lot, at a redemption price equal to the principal amount thereof
to be redeemed, together with accrued interest to the date fLxed for redemption, without premium, from
sinking payments as follows:
Redemption Date
(September 1)
20
20
20
20
20_ (maturity)
Sinking Payments
$
The Series B Bonds maturing on September 1, 2036, are subject to mandatory sinking payment
redemption in part on September 1, 20_, and on each September 1 thereafter to maturity, by lot, at a
redemption price equal to the principal amount thereofto be redeemed, together with accrued interest to the
date fixed for redemption, without premium, from sinking payments as follows:
Redemption Date
(September 1)
20
20
20
2036 (maturity)
Sinking Payments
$
The amounts in the foregoing tables shall be reduced to the extent practicable so as to maintain level
debt service on the Series B Bonds as a result of any prior partial redemption of the Series B Bonds pursuant
to an optional redemption or mandatory redemption from prepaid Special Taxes as specified in writing by
the Finance Director to the Fiscal Agent.
Redemption from Special Tax Prepayments. Special Tax Prepayments and any corresponding
transfers from the applicable Senior Subaccount or Subordinate Subaccount within the Reserve Fund shall
be used to redeem the 2006 Bonds on the next Interest Payment Date for which notice of redemption can
timely be given, by lot within a maturity and allocated proportionately among the Series A Bonds and the
Series B Bonds based upon the then outstanding principal of each such series, and allocated amongmaturities
within a series ofthe 2006 Bonds so as to maintain, as much as practicable, substantially level debt service
on the Bonds, in each case at a redemption price (expressed as a percentage at the principal amount of the
2006 Bonds to be redeemed), as set forth below, together with accrued interest to the date fixed for
redemption:]
Redemption Date Redemption Price
Any mterest Payment Date from and including 103 %
March 1, 2007 to and including March 1, 20_
September 1, 200 and March L 20 102
September 1,20 and March L 20 101
September 1, 20 and any mterest Payment 100
Date thereafter
10
Purchase In Lieu of Redemption. In lieu of any redemption, moneys in the Bond Fund may be used
and withdrawn by the Fiscal Agent for purchase of (lutstanding 2006 Bonds, upon the filing with the Fiscal
Agent of an officer's certificate requesting such purchase, at public or private sale as and when, and at such
prices (including brokerage and other charges) as such officer's certificate may provide, but in no event may
2006 Bonds be purchased at a price in excess of the principal amount thereof, plus interest accrued to the
date of purchase and any premium which would otherwise be due if such 2006 Bonds were to be redeemed
in accordance with the Fiscal Agent Agreement.
Notice of Redemption. The Fiscal Agent shall cause notice of any redemption to be mailed by first
class mail, postage prepaid, at least thirty (30) days but not more than sixty (60) days prior to the date fixed
for redemption, to the Underwriter, to the Securities Depositories, to one or more Information Services, and
to the respective registered Bondowners of any 2006 Bonds designated for redemption, at their addresses
appearing on the Bond registration books in the principal office ofthe Fiscal Agent; but such mailing shall
not be a condition precedent to such redemption and failure to mail or to receive any such notice, or any
defect therein, shall not affect the validity of the proceedings for the redemption of such 2006 Bonds.
Such notice shall state the redemption date and the redemption price and, if less than all of the then
Outstanding 2006 Bonds are to be called for redemption, shall designate the CUSIP@ numbers and Bond
numbers of the 2006 Bonds to be redeemed by giving the individual CUSIP" number and Bond number of
each 2006 Bond to be redeemed or shall state that all 2006 Bonds between two stated Bond numbers, both
inclusive, are to be redeemed or that all of the 2006 Bonds of one or more maturities have been called for
redemption, shall state as to any 2006 Bond called in part the principal amount thereof to be redeemed, and
shall require that such 2006 Bonds be then surrendered at the principal office of the Fiscal Agent for
redemption at the said redemption price, and shall state that further interest on such 2006 Bonds will not
accrue from and after the redemption date.
Partial Redemption. Whenever provision is made in the Fiscal Agent Agreement for the redemption
ofless than all of the 2006 Bonds or any given portion thereof, the Fiscal Agent shall selectthe 2006 Bonds
to be redeemed, from all 2006 Bonds or such given portion thereof not previously called for redemption,
among maturities as directed in writing by the Authority Treasurer (who shall specify 2006 Bonds to be
redeemed so as to maintain, as much as practicable, the same debt service profile for the 2006 Bonds as in
effect prior to such redemption, unless otherwise specified herein), and by lot within a maturity in any
manner which the Fiscal Agent deems appropriate.
Upon surrender of 2006 Bonds redeemed in part only, the Authority shall execute and the Fiscal
Agent shall authenticate and deliver to the registered Bondowner, at the expense of the Authority, a new
2006 Bond or 2006 Bonds, of the same series and maturity, of authorized denominations in aggregate
principal amount equal to the unredeemed portion of the 2006 Bond or 2006 Bonds.
Effect of Redemption. From and after the date fixed for redemption, if funds available for the
payment of the principal of, and interest and any premium on, the 2006 Bonds so called for redemption shall
have been deposited in the Bond Fund, such 2006 Bonds so called shall cease to be entitled to any benefit
under the Fiscal Agent Agreement other than the right to receive payment of the redemption price, and no
interest shall accrue thereon on or after the redemption date specified in such notice.
Transfer and Exchange of 2006 Bonds
Any 2006 Bond may, in accordance with the terms of the Fiscal Agent Agreement, be transferred
upon the books of the Fiscal Agentrequired to be kept pursuant to the Fiscal Agent Agreement by the person
in whose name it is registered, in person or by his duly authorized attorney, upon surrender of such 2006
Bond for cancellation, accompanied by delivery of a written instrument of transfer in a form acceptable to
the Fiscal Agent duly executed. 2006 Bonds may be exchanged at the principal office of the Fiscal Agent
for alike aggregate principal amount of 2006 Bonds of authorized denominations and of the same series and
maturity. The Fiscal Agent shall collect from the Bondowner requesting a transfer or exchange any tax or
other governmental charge required to be paid with respect to such transfer or exchange.
No transfer or exchange shall be required to be made of any 2006 Bonds (i) fifteen days prior to the
date established by the Fiscal Agent for selection of2006 Bonds for redemption, (ii) with respect to a Bond
after such Bond has been selectedfor redemption, or (iii) between a Record Date and the succeeding mterest
11
Payment Date.
Book-Entry and DTC
The Depository Trust Company ("DTC"), New York, New York, will act as securities depository
for the 2006 Bonds. The 2006 Bonds will be issued as fully-registered securities registered in the name of
Cede & Co. (DTC's partnership nominee) or such other name as may be requested by an authorized
representative of DTC. One fully-registered 2006 Bond certificate will be issued for each maturity of the
2006 Bonds, each in the aggregate principal amount of such maturity, and will be deposited with DTC. Ail
references in this ()fficial Statement to the Bondowners or an owner of 2006 Bonds shall mean DTC or its
designee and not the beneficial owners of the 2006 Bonds. See APPENDIX G "Book-Entry System."
12
Debt Service Schedule ,
The following table represents the annual debt service for the 2006 Bonds (including mandatory
sinking fund redemptions on their respective September 1 redemption dates), assuming that there are no
optional redemptions or mandatory redemptions from prepayments of Special Taxes.
Aggregate
Series A Subordinate Series B Debt Service
Series A Series B
Period Bonds Bonds Total 21 II 16 Bond
Ending Principal Interest Debt Service Principal Interest Debt Service Debt Service
9/1/211117 $1911,111111 $733,1134 79 $923,1134 79 $35,111111 $IRII,44RI3 $215,44R 13 $1,I3R,4R292
9/1/21 II IR 255,()()() 669,712511 924,712511 511,111111 165,IR51111 215,IR51111 1,139,R97511
9/1/211119 265,111111 6611,277.511 925,277511 55,111111 163,1611 1111 21R,1611 1111 1,143,437511
9/1/211]11 275,111111 6511,3411 1111 925,3411 1111 55,111111 1611,R22.511 215,R22511 1,141,162511
9/1/21111 2R5,11I1I1 639,R911 1111 924,R911 1111 611,111111 15R,4112.511 21R,4112.511 1,143,292511
9/1/21112 295,111111 62R,917.511 923,917.511 611,111111 155,7112.511 215,7112.511 1,139,6211 1111
9/1/21113 3]11,111111 617,353511 927,353511 65,111111 152,942511 217,942511 1,145,296.1111
9/1/21114 3211,111111 61 14,R91.51 1 924,R91.511 65,111111 149,RR7.511 214,RR7.511 1,139,7791111
9/1/21115 335,111111 591,7117.511 926,7117.511 711,111111 146,767511 216,767511 1,143,4751111
9/1/21116 345,111111 577, 73R.I II 1 922, 73R.I II 1 75,111111 143,337511 21R,337511 1,141,1175.511
9/1/21117 3611,111111 563,1]11 1111 923,1]11 1111 RII,I II II 1 139,5R7511 219,5R7511 1,142,697511
9/1/2111R 3RII,11I1I1 547,6311 1111 927,6311 1111 RII,I II II 1 135,547511 215,547511 1,143,177.511
9/1/21119 395,111111 5311,9]11 1111 925,9]11 1111 R5,11I1I1 131,467511 216,467511 1,142,377.511
9/1/211211 4]11,111111 513,1351111 923,135 1111 911,111111 127,11911 1111 217,11911 1111 1,1411,225 1111
9/1/21121 4311,111111 494,4RII 1111 924,4RII 1111 95,111111 122,4]11 1111 217,4]11 1111 1,141,R911 1111
9/1/21122 4511,111111 474,711111111 924,711111111 11111,111111 117,422511 217,422511 1,142,122511
9/1/21123 4711,111111 452,R75 1111 922,R75 1111 ]115,111111 112,122511 217,122511 1,139,997511
9/1/21124 495,111111 4311,IIRII 1111 925,IIRII 1111 1]11,111111 ]116,557.511 216,557511 1,141,637511
9/1/21125 52(),()()() 4116,1172.511 926,1172.511 115,111111 11111,727.511 215,727511 1,1 41,RI II 1 1111
9/1/21126 545,111111 3RII,R52.511 925,R52511 125,111111 94,632511 219,632511 1,145,4R51111
9/1/2027 570,000 354,42000 924,42000 130,000 88,007.50 218,007.50 1,142,42750
9/1/2112R 61111,111111 326,2115 1111 926,2115 1111 135,111111 R1,1I52.511 216,1152.511 1,142,257511
9/1/21129 6311,111111 296,5115 1111 926,5115 1111 145,111111 73,R311 1111 21R,R311 1111 1,145,3351111
9/1/211311 6611,111111 265,3211 1111 925,3211 1111 1511,111111 66,1172.511 216,1172.511 1,141,392511
9/1/21131 6911,111111 232,6511 1111 922,6511 1111 1611,111111 5R,1 147.51 1 21R,1I47.511 1,1411,697.511
9/1/21132 725,111111 19R,495 1111 923,495 1111 165,111111 49,4R7.511 214,4R7511 1,137,9R2511
9/1/2033 765,000 162,607.50 927,607.50 175,000 40,66000 215,66000 1,143,26750
9/1/2034 8nn nnn 124,74000 924,74000 185,000 31,29750 216,29750 1,141,037.50
9/1/21135 R411,1 II II 1 R5,1411 1111 925,1411 1111 195,111111 21,411111111 216,411111111 1,141,5411 1111
9/1/21136 RRII,IIIIII 43,5611 1111 923,5611 1111 2()5,()()() ]11,967.511 215,967511 1,139,527511
*Preliminary, subject to cliange.
13
Coverage of Annual Debt Service
Annual debt service on the 2006 Bonds has been based on the maximum Special Tax which may be
levied on property categorized as Residential Developed Property as of April 1, 2006. Assuming
development remains constant at the April 1, 2006, level, the Taxable Undeveloped Property provides
additional coverage of debt service on the 2006 Bonds. See "SECURITY F< lR THE 2006 B( lNDS - Rate
and Method." See also Table 4 under the caption "THE C( lMMUNITY FACILITIES DISTRICT - Special
Tax Collections" for a description of the projected Special Tax levies if all residential property is
constructed.
Year
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
Est.
Residential
Developed
Property
Special
Taxes(l)
$1,060,625
1,060,625
1,060,625
1,060,625
1,060,625
1,060,625
1,060,625
1,060,625
1,060,625
1,060,625
1,060,625
1,060,625
1,060,625
1,060,625
1,060,625
1,060,625
1,060,625
1,060,625
1,060,625
1,060,625
1,060,625
1,060,625
1,060,625
1,060,625
1,060,625
1,060,625
1,060,625
1,060,625
1,060,625
1,060,625
Priority
Admin.
EXDenses
$40,000
40,000
40,000
40,000
40,000
40,000
40,000
40,000
40,000
40,000
40,000
40,000
40,000
40,000
40,000
40,000
40,000
40,000
40,000
40,000
40,000
40,000
40,000
40,000
40,000
40,000
40,000
40,000
40,000
40,000
Table 1
Temecula Public Financing Authority
Community Facilities District No. 01-2 (Barveston)
Series A Bonds Debt Service Coverage(l)
Net
Residential
Developed
Property
Soecial Taxes
$1,020,625
1,020,625
1,020,625
1,020,625
1,020,625
1,020,625
1,020,625
1,020,625
1,020,625
1,020,625
1,020,625
1,020,625
1,020,625
1,020,625
1,020,625
1,020,625
1,020,625
1,020,625
1,020,625
1,020,625
1,020,625
1,020,625
1,020,625
1,020,625
1,020,625
1,020,625
1,020,625
1,020,625
1,020,625
1,020,625
Maximum
Undeveloped
Property
Special
Taxesl1)
$1,104,367
1,104,368
1,1 04,369
1,104,370
1,104,371
1,104,372
1,1 04,3 73
1,104,374
1,104,375
1,1 04,3 76
1,1 04,3 77
1,104,378
1,1 04,3 79
1,104,380
1,104,381
1,1 04,382
1,104,383
1,104,384
1,1 04,385
1,1 04,386
1,104,387
1,104,388
1,104,389
1,104,390
1,104,391
1,104,392
1,104,393
1,1 04,394
1,1 04,395
1,104,396
Total Net
Special
Taxes
$2,124,993
2,124,994
2,124,995
2,124,996
2,124,997
2,124,998
2,124,999
2,125,000
2,125,001
2,125,002
2,125,003
2,125,004
2,125,005
2,125,006
2,125,007
2,125,008
2,125,009
2,125,010
2,125,011
2,125,012
2,125,013
2,125,014
2,125,015
2,125,016
2,125,017
2,125,018
2,125,019
2,125,020
2,125,021
2,125,022
Series A
Debt
Service
$923,035
924,713
925278
925,340
924,890
923,918
927,354
924,892
926,708
922,138
923,110
927,630
925,910
923,135
924,480
924,700
922,875
925,080
926,073
925,853
924,420
926,205
926,505
925,320
922,650
923,495
927,608
924,740
925,140
923,560
Series A
Coverage
from Res.
Dev.
Property
Net Taxes'
1.11
1.10
1.10
1.10
1.10
1.10
1.10
1.10
1.10
1.11
1.11
1.10
1.10
1.11
1.10
1.10
1.11
1.10
1.10
1.10
1.10
1.10
1.10
1.10
1.11
1.11
1.10
1.10
1.10
1.11
Series A
Total
Coverage"
2.30
2.30
2.30
2.30
2.30
2.30
2.29
2.30
2.29
2.30
2.30
2.29
2.30
2.30
2.30
2.30
2.30
2.30
2.29
2.30
2.30
2.29
2.29
2.30
2.30
2.30
2.29
2.30
2.30
2.30
Series B
Debt
Service"
$215,448
215,185
218,160
215,823
218,403
215,703
217,943
214,888
216,768
218,338
219,588
215,548
216,468
217,090
217,410
217,423
217,123
216,558
215,728
219,633
218,008
216,053
218,830
216,073
218,048
214,488
215,660
216,298
216,400
215,968
,1, Based on development status as of April!, 2006 and assumes no further development of the property in the District
* Preliminary, subject to change.
14
2006
Bonds
Total
Coverage"
1,87
1,86
1,86
1,86
1,86
1,86
1,86
1,86
1,86
1,86
1,86
1,86
1,86
1,86
1,86
1,86
1,86
1,86
1,86
1,86
1,86
1,86
1,86
1,86
1,86
1,87
1,86
1,86
1,86
1,86
SEClTRITY FOR THE 2006 BONDS
General
The Bonds are secured by a first pledge (which pledge shall be effected in the manner and to the extent
provided in the Fiscal Agent Agreement) of all ofthe Special Tax Revenues and all moneys deposited in the
BondFund (including the Special Tax Prepayments Accounttherein) and, until disbursed as provided in the
Fiscal Agent Agreement, in the Special Tax Fund, subject in any event to the priority for the disposition of
amounts in the Bond Fund for the payment of debt service due on the Series A Bonds and to replenish the
Senior Subaccount of the Reserve Fund to the amount ofthe Senior Subaccount Reserve Requirement prior
to the use of amounts therein for the payment of debt service due on the Series B Bonds and to make deposits
to the Subordinate Subaccount of the Reserve Fund. The Bonds, other than the Series B Bonds, are further
secured by a first pledge of all of the moneys deposited in the Senior Subaccount ofthe Reserve Fund, and
the Series B Bonds are further secured by a first pledge of all of the moneys deposited in the Subordinate
Subaccount of the Reserve Fund. The Special Tax Revenues and all moneys deposited into the Special Tax
Fund, the Bond Fund and the Reserve Fund, including the Senior Subaccount and the Subordinate
Subaccounttherein (except as otherwise specifically provided in the Fiscal Agent Agreement), are dedicated
to the payment of the principal of, and interest and any premium on, the Bonds as provided in the Fiscal
Agent Agreement an in the Act until all of the Bonds have been paid and retired or until moneys or Federal
Securities have been set aside irrevocably for that purpose in accordance with the Fiscal Agent Agreement,
subject in any event to the priority of the disposition of amount in the Bond Fund in the Fiscal Agent
Agreement.
Amounts in the Administrative Expense Fund, the Improvement Fund, the Refunding Fund and the Cost
ofIssuance Fund are not pledged to the repayment of the 2006 Bonds. The hnprovements financed with the
proceeds of the Prior Bonds and from amounts in the Improvement Fund are not in any way pledged to pay
the debt service on the Bonds. Any proceeds of condemnation or destruction of any portion of the project
are not pledged to pay the debt service on the Bonds and are free and clear of any lien or obligation imposed
under the Fiscal Agent Agreement.
Sped al Taxes
The Authority has covenanted in the Fiscal Agent Agreement to comply with all requirements of the Act
so as to assure the timely collection of Special Taxes, including without limitation, the enforcement of
delinquent Special Taxes. The Fiscal Agent Agreement provides that the Special Taxes are payable and will
be collected in the same manner and at the same time and in the same installment as the general taxes on real
property, and will have the same priority, become delinquent at the same times and in the same proportionate
amounts and bear the same proportionate penalties and interest after delinquency as do the general taxes on
real property; provided, the Authority may provide for direct collection of the Special Taxes in certain
circumstances.
Because the Special Tax levy is limited to the maximum Special Tax rates set forth in the Rate and
Method, no assurance can be given that, in the event of Special Tax delinquencies, the receipts of Special
Taxes will, in fact, be collected in sufficient amounts in any given year to pay debt service on the 2006
Bonds.
Although the Special Tax, when levied, will constitute a lien on parcels subject to taxation within the
District, it does not constitute a personal indebtedness ofthe owners of property within the District. There
is no assurance that the owners of real property in the District will be financially able to pay the annual
Special Tax or that they will pay such tax even if financially able to do so. See "B( lND( lWNERS' RISKS"
herein.
NEITHER THE F AlTH AND CREDIT OF THE AlTTHORITYNOR THE T ~XING POWER OF THE
DISTRICT (EXCEPT 1< 1 THE LIMITED EXTENT DESCRIBED HEREIN) (lR THE STATE (lR ANY
POLITICAL SlTBDIVISION THEREOF IS PLEDGED TO THE PA'{MENT OF THE 2006 BONDS.
OTHER THAN THE SPECIAL T~XES OF THE DISTRICT, NO T~XES ARE PLEDGED TO THE
PAYMENT OF THE 2006 BONDS. THE 2006 BONDS ARE NOT A GENERAL OBLIGATION OF THE
AlTTHORITY, BlTT ARE LIMITED OBLIGATIONS OF THE AlTTHORITY FOR THE DISTRICT
PAYABLE SOLELY FROM SOlTRCES PLEDGED IN THE FISC AL AGENT AGREEMENT.
15
Rate and Method
General. The Special Tax is levied and collected according to the Rate and Method set forth in
APPENDIX B "Rate and Method of Apportionment for Community Facilities District No. 01-2
(Harveston)." The qualified electors of the District approved the Rate and Method on March 26, 2002.
Capitalized terms used in the following paragraphs but not defined herein have the meanings given them in
the Rate and Method.
The Rate and Method provides the means by which the Board of Directors of the Authority may annually
levy the Special Taxes within the District up to the Maximum Special Tax. The Rate and Method provides
that the Annual Special Tax may not be levied after Fiscal Year 2051-52.
AlinimumAnnual Special T{[~A Requirement. Annually, at the time oflevying the Special Tax for
the District, the Authority will determine the amount of money to be collected from Taxable Property in the
District (the "Special Tax A Requirement"), which will be the amount required in any Fiscal Year to pay the
following:
the debt service on all Variable Rate Bonds, if any, as provided in the Rate and Method
(upon issuance of the 2006 Bonds, there will be no outstanding Variable Rate Bonds);
the periodic cost on the Bonds, including but not limited to, credit enhancement, liquidity
support and rebate payments on the Bonds;
the Administrative Expenses; and
any amount required to establish or replenish any bond or interest rate reserve funds for any
outstanding Bonds; less
a credit for funds available to reduce the annual Special Tax levy under the Fiscal Agent
Agreement.
In addition, the Authoritywill determine the amount of money to be collected from TaxableProperty
in the District to pay the "Special Tax B Requirement," "Special Tax B Requirement" means that amount
required in any Fiscal Year for the District to pay the estimated costs of providing services, including the
salaries of City staff related to and a proportionate share of City overhead costs, for the maintenance of the
approximately 7.5 acres oflandscaped parkland and the approximately 8.5 acres of lake property located in
Planning Area 3 of the Harveston Specific Plan in an amountnotto exceed [$214,651.63] for Fiscal
Year 2006-07, increasing by 100 each Fiscal Year thereafter. In no event shall "Special Taxes" include any
Special Tax B, and moneys derived from the levy of Special Tax B do not constitute Special Taxes for
purposes ofthe Fiscal Agent Agreement and will not be available for, and are not pledged to, the payment
of the Bonds.
(i)
(ii)
(iii)
(iv)
(v)
(vi)
the debt service on all Fixed Rate Bonds for the calendar year that commences in such Fiscal
Year; .
Developed and r Jndeveloped Property; Exempt Property. The Rate and Method declares that for
each Fiscal Year, each Assessor's Parcel within the District shall be classified as Developed Property,
TaxablePublic Property, Taxable Property Owner Association Property or Undeveloped Property and shall
be subject to Special Taxes in accordance with the Rate and Method.
(i) "Developed Prof)ertv" means all Assessor's Parcels that are not exempt from the Special
Tax, exclusive of Property Owner Association Property and Public Property, for which (i)
a Final Subdivision was recorded prior to the January P' preceding the Fiscal Year in which
the Special Tax is being levied and (ii) a building permit was issued after January 1, 2001,
but prior to the April 1"preceding the Fiscal Year in which the Special Taxis being levied.
16
(ii) 'Hndevelop.!'d Pronertv:" means all Assessor's Parcels of Taxable Property which are not
Developed Property, Taxable Property Owner Association Property or Taxable Public
Property.
(iii) ''Taxa hIe Pronertv" means all of the Ass essor's Parcels within the boundaries of the District
that are not exempt from the Special Tax pursuant to law or the Rate and Method.
(iv) Exemntion" The Rate and Method provides that no Special Tax shall be levied on up to 16.5
acres of Property (lwner Association Property and on up to 93.3 acres of Public Property. The District
Administrator will assign tax-exempt status to Assessor's Parcels in the chronological order in which such
Parcels are known to the District Administrator to become Property Owner Association Property or Public
Property. Once an Assessor's Parcel has been classified as Public Property, its tax-exempt status will be
permanent, independent of its future uses. Public Property includes property used for rights-of-way or any
other purpose and owned by or irrevocably offered for dedication to the federal government, the State, the
County, the City or any other public agency.
Al{[~imum Special T{[~. The Maximum Special Tax is defined in the Rate and Method as follows:
(i) TTndrveloned Prore~: The Maximum Special Tax A for Undeveloped Property that is
Service Commercial Property shall be $1,960 per Acre. The Maximum Special Tax A for
Undeveloped Property that is Taxable Property (lwner Association Property and Taxable
Public Property shall be $6,126 per Acre. The Maximum Special Tax A for Other
Undeveloped Property shall be $6,126 per Acre plus any Extraordinary Special Tax A or
(lne- Time Special Tax A that may be applicable. The Extraordinary Special Tax A and the
One-Time Special Tax A are special taxes which may be levied on Other Undeveloped
Property related to Variable Rate Bonds and related to conversion to Fixed Rate Bonds.
Upon issuance of the 2006 Bonds, the Extraordinary Special Tax A and the One-Time
Special Tax A are no longer applicable. The Maximum Special Tax B for Other
Undeveloped Property is approximately _[712.82] per Acre for Fiscal Year 2006-07 and
shall increase by an amount equal to 1.000'0 ofthe maximum tax rates in effect for the prior
Fiscal Year. The Maximum Special Tax for each Assessor's Parcel classified as Other
Undeveloped Property, shall be Maximum Special Tax A plus Maximum Special Tax B.
(ii) Develoned Pronerty: The Maximum Special Tax A for each Assessor's Parcel classified as
Developed Property shall be the greater of (i) the amount derived by application of the
Assigned Special Tax A, or (ii) the amount derived by application of the Backup Special
Tax A.
The sum of the Assigned Special Tax A and the Assigned Special Tax B for Developed Property
ranges from $330 to $1,704 per unit. See "APPENDIX B - Rate and Method of Apportionment for
Community Facilities District No. 01-2 (Harveston) Table 1" herein for a listing of the Assigned Annual
Special Tax rates for various sizes of Units.
The Bach:up Special Tax A for Developed Property in each Fiscal Year, starting with Fiscal Year
2002-03 and for each Fiscal Year thereafter, is $6,126 per acre for Residential Property and Other Non-
Residential Property, and $1,960 per acre for Service Commercial Property.
1.1 ethod of Apportionment . The Rate and Method provides that commencing Fiscal Year 2002- 03
and for each subsequent Fiscal Year, the Authority shall levy Annual Special Taxes as follows:
First: The Rate and Method provides for the levy of Special Tax A with respectto Variable
Rate Bonds. For each subsequent Fiscal Year after refunding of the Prior Bonds, Special Tax A
shall be levied Proportionately on each Assessor's Parcel of Developed Property at up to 100% of
the applicable Assigned Special Tax A as needed to satisfy the Special Tax A Requirement. Special
Tax B shall be levied Proportionately on each Assessor's Parcel of Developed Property at up to
100%ofthe applicable Assigned Special TaxB as needed to satisfy the Special Tax B Requirement;
Second: If additional moneys are needed to satisfy the Special Tax A Requirement after the
first step has been completed, Special Tax A shall be levied Proportionately on each Assessor's
17
Parcel of Undeveloped Property that is Service Commercial Property at up to $1,960 per Acre and
Proportionately on each Assessor's Parcel of (lther Undeveloped Property at up to $3,212 per Acre
and if additional moneys are needed to satisfy the Special Tax B Requirement after the first step has
been completed, Special Tax B shall be levied Proportionately on each Assessor's Parcel of Other
Undeveloped Property at up to 100% of the applicable Assigned Special Tax B;
Third: If additional moneys are needed to satisfy the Special Tax A Requirement after the
first two steps have been completed, Special Tax A shall be levied Proportionately on each
Assessor's Parcel of (lther Undeveloped Property at up to $6,961 per Acre;
El1w:!h: If additional moneys are needed to satisfy the Special Tax A Requirement after the
first three steps have been completed, then the levy of Special Tax A on each Assessor's Parcel of
Developed Property whose Maximum Special Tax A is determined through the application of the
Back<1p Special Tax A shall be increased Proportionately from the Assigned Special Tax A up to the
Maximum Special Tax A for each such Assessor's Parcel;
Eifth: If additional moneys are needed to satisfy the Special Tax A Requirement after the
first four steps have been completed, then the Special Tax A shall be levied Proportionately on each
Assessor's Parcel of Taxable Property Owner Association Property up to the Maximum Special
Tax A for Taxable Property (lwner Association Property;
Si::ah: If additional moneys are needed to satisfy the Special Tax A Requirement after the
first five steps have been completed, then the Special Tax A shall be levied Proportionately on each
Assessor's Parcel of Taxable Public Property up to the Maximum Special Tax A for Taxable Public
Property.
Prepayment afAnnual Special T'Lyes. The Special Tax A Annual Special Tax obligation for an
Assessor's Parcel of Developed Property, Update Property (i.e., an Assessor's Parcel of Undeveloped
Property for which a building permit has been issued but which has not yet been classified as Developed
Property, Taxable Property, Owner-Association Property or Taxable Public Property or Undeveloped
Property that is Service Commercial Property) may in certain circumstances be prepaid in whole or in part,
provided that there are no delinquent Special Taxes, penalties, or interest charges outstanding with respect
to such Assessor's Parcel at the time the Annual Special Tax obligation would be prepaid. The Prepayment
Amount for an applicable Assessor's Parcel after the issuance of 2006 Bonds is calculated based on Bond
Redemption Amounts and other costs, all as specified in "APPENDIX B Rate and Method of
Apportionment for Community Facilities District No. 01-2 (Harveston) - Section J" herein. Any such
prepayment will result in a redemption of Bonds prior to maturity. See clause (b) under the caption "THE
2006 BONDS Terms of Redemption."
Special Taxes and the Teeter Plan
The County has adopted a Teeter Plan as provided for in Section 4701 et seq of the California
Revenue and Taxation Code, under which a tax distribution procedure is implemented and securedroll taxes
are distributed to taxing agencies within the County on the basis of the tax levy, rather than on the basis of
actual tax collections. By policy, the County does not include assessments, reassessments and special taxes,
including the Special Taxes of the District, in its Teeter program.
Proceeds of Foreclosure Sales
Pursuantto Section 53356.1 ofthe Act, in the event of any delinquency in the payment ofthe Special
Tax, the District may order the institution of a Superior Court action to foreclose the lien therefor within
specified time limits. In such an action, the real property subject to the unpaid amount may be sold at judicial
foreclosure sale. Such judicial foreclosure action is not mandatory. Under the Fiscal Agent Agreement, on
or about February 15 and June 15 of each Fiscal Year, the Treasurer shall compare the amount of Special
Taxes theretofore levied in the District to the amount of Special Tax Revenues theretofore received by the
Authority, and:
Individual Delinquencies. If the Treasurer determines that any single parcel subject to the
Special Tax in the District is delinquent in the payment of Special Taxes in the aggregate amount
18
of $5,000 or more, then the Treasurer will send or cause to be sent a notice of delinquency (and a
demand for immediate paymentthereof) to theproperty owner within 45 days of such determination,
and (if the delinquency remains uncured) foreclosure proceedings will be commenced by the
Authority within 90 days of such determination. Notwithstanding the foregoing, the Treasurer may
defer such action if the amounts in the subaccount of the Reserve Fund (taking into account amounts
available to be drawn under the Reserve Fund Policy) aggregate at least equal an amount equal to
the Maximum Reserve Fund Amount.
AggregateDelinquencies. If the Treasurer determines that (i) the total amount of delinquent
Special Tax for the prior Fiscal Year for the entire District (including total individual delinquencies
described above) exceeds 5% of the total Special Tax due and payable for the prior Fiscal Year or
(ii) there are ten ( 10) or fewer owners of real property within the District, determined by reference
to the latest available secured property tax roll of the County, the Treasurer shall notify or cause to
be notified property owners who are then delinquent in the payment of Special Taxes (and demand
immediate payment of the delinquency) within 45 days of such determination, and the Authoritywill
commence foreclosure proceedings within 90 days of such determination against each parcel ofland
in the District with a Special Tax delinquency.
It should be noted that any foreclosure proceedings commenced as described above could be stayed
by the commencement of bankruptcy proceedings by or against the owner of the delinquent property. See
"B( lND( lWNERS' RISKS - Bankruptcy and Foreclosure Delay."
No assurances can be given that a judicial foreclosure action, once commenced, will be completed
or that it will be completed in a timely manner. See "B( lND( lWNERS' RISKS - Potential Delay and
Limitations in Foreclosure Proceedings." If a judgment of foreclosure and order of sale is obtained, the
judgment creditor (the District) must cause a Notice of Levy to be issued. Under current law, a judgment
debtor (property owner) has 120 days (or in certain limited cases a shorter period) from the date of service
of the Notice of Levy and 20 days from the subsequent notice of sale in which to redeem the property to be
sold. If a judgment debtor fails to so redeem and the property is sold, his only remedy is an action to set
aside the sale, which must be brought within 90 days of the date of sale. If, as a result of such action, a
foreclosure sale is set aside, the judgment is revived and the judgment creditor is entitled to interest on the
revived judgment as if the sale had not been made. The constitutionality of the aforementioned legislation,
which repeals the former one-year redemption period, has not been tested; and there can be no assurance that,
iftested, such legislation will be upheld. Any parcel subject to foreclosure sale must be sold at the minimum
bid price, unless a lesser minimum bid price is authorized by the owners, of 75% of the principal amount of
the 2006 Bonds (lutstanding.
No assurances can be given that the real property subject to sale or foreclosure will be sold or, if
sold, that the proceeds of sale will be sufficient to pay any delinquent Special Tax installment. The Act does
not require the Authority or the District to purchase or otherwise acquire any lot or parcel of property offered
for sale or subject to foreclosure if there is no other purchaser at such sale. The Act does specify that the
Special Tax will have the same lien priority in the case of delinquency as for ad valorem property taxes.
If delinquencies in the payment of Special Taxes exist, there could be a default or delay in payments
to the Bondowners of the 2006 Bonds pending prosecution of foreclosure proceedings and receipt by the
District of foreclosure sale proceeds, if any. However, within the limits of the Rate and Method and the Act,
the District may adjust the Special Taxes levied on all property within the District in future fiscal years to
provide an amount, taking into account such delinquencies, required to pay debt service on the 2006 Bonds.
There is, however, no assurance that the maximum Special Tax rates will be at all times sufficient to pay the
amounts required to be paid on the 2006 Bonds by the Fiscal Agent Agreement.
Special Tax Fund
Pursuant to the Fiscal Agent Agreement, except as described below, all Special Tax Revenues
received by the Authority will be deposited inthe Special Tax Fund, which will beheld by the Fiscal Agent
on behalf of the Authority. Moneys in the Special Tax Fund shall be held in trust by the Fiscal Agent for
the benefit of the Authority and the Bondowners. Pending disbursement, moneys in the Special Tax Fund
will be subject to a lien in favor of the Bondowners and the Authority established under the Fiscal Agent
Agreement.
19
Disbursements. Moneys in the Special Tax Fund will be disbursed as needed to pay the obligations
of the District as provided in the Fiscal Agent Agreement. The Authority shall promptly remit any Special
Tax Revenues received by it to the Fiscal Agent for deposit by the Fiscal Agent to the Special Tax Fund,
except that, any Special Tax Revenues constituting payment of the portion of the Special Tax levy for
Administrative Expenses shall be deposited by the Treasurer in the Administrative Expense Fund and any
proceeds of Special Tax Prepayments shall be transferred by the Treasurer to the Fiscal Agent for deposit
by the Fiscal Agent directly in the Special Tax Prepayments Account established in the Bond Fund.
No later than three Business Days prior to each Interest Payment Date, the Fiscal Agent shall
withdraw from the Special Tax Fund and transfer the following amounts in the following order of priority
(i)to the Bond Fund an amount, taking into account any amounts then on deposit in the Bond Fund and any
expected transfers from the Improvement Fund, the Senior Subaccount ofthe Reserve Fund and the Special
Tax Prepayments Account to the Bond Fund, such that the amount in the Bond Fund equals the principal
(including any sinking payment), premium, if any, and interest due on the Bonds (other than the Series B
Bonds) on such Interest Payment Date, (ii) to the Bond Insurer, any amounts owed by the Authority to the
Bond msurer in respect of amounts drawn on the Reserve Fund Policy (including, but not limited to,
repayment of any withdrawals under the Reserve Fund Policy which have not theretofore been prepaid); and
(iii) to the Senior Subaccount of the Reserve Fund an amount, taking into account amounts then on deposit
in the Senior Subaccount and amounts available to be drawn under the Reserve Fund Policy for purposes of
the Senior Subaccount ofthe Reserve Fund (after any amounts paid to the Bond Insure under the preceding
clause (ii)), such that he amount in the Senior Subaccount, such that the amount in the Senior Subaccount
is equal to the Senior Subaccount Reserve Requirement, (iv) to the Bond Fund an amount, taking into
account any expected transfers referred to in clause (i) and from the Subordinate Subaccount of the Reserve
Fund, as well as the requirements of the preceding clauses (i), (ii) and (iii), such thatthe amount in the Bond
Fund equals the principal (including any sinking payment), premium, if any, and interest due on the Bonds
(includmg the Series B Bonds) on tlie next mterest Payment Date, and (v) to the Subordinate Subaccount of
the Reserve Fund an amount, taking into account amounts then on deposit in the Subordinate Subaccount,
such that the amount in the Subordinate Subaccount is equal to the Subordinate Subaccount Reserve
Requirement,
Investment. Moneys in the Special Tax Fund will be invested and deposited as described in
" - Investment of Moneys in Funds" below and APPENDLX D - "Summary of Certain Provisions of the
Fiscal Agent Agreement." Interest earnings and profits resulting from such investment and deposit will be
retained in the Special Tax Fund to be used for the purposes of such Fund.
Bond Fund
The Fiscal Agent will hold the Bond Fund in trust for the benefit of the Bondowners. There is
created in the Bond Fund, as a separate account to be held by the Fiscal Agent the Special Tax Prepayments
Account. Moneys in the Bond Fund and the account therein shall be disbursed for the payment of the
principal of, and interest and any premium on, the 2006 Bonds and for the other purposes as provided below,
and, pending such disbursement, shall be subject to a lien in favor of the owners of the 2006 Bonds.
Special TCL\" Prepayments Account. Moneys in the Special Tax Prepayments Account shall be
transferred by the Fiscal Agent to the Bond Fund on the next date for which notice of redemption of Bonds
can timely be given under the Fiscal Agent Agreement, and notice to the Fiscal Agent can timely be given
under the Fiscal Agent Agreement, and shall be used (together with amounts transferred from the applicable
Subaccount in the Reserve Fund) to redeem Bonds on the redemption date selected in accordance with the
Fiscal Agent Agreement.
BondFund Disbursements. On each Interest Payment Date, the Fiscal Agent shall withdraw from
the Bond Fund and pay to the Owners of the Bonds the principal, and interest and any premium, then due
and payable on the Bonds, including any amounts due on the Bonds by reason of the sinking payments or
an optional redemption of the Bonds or redemption from Special Tax prepayments, such payments to be
made in the priority listed in the succeedingparagraphs. Notwithstanding the foregoing, amounts in the Bond
Fund as a result of the closing of the Improvement Fund shall be used to pay the principal of and interest on
the Bonds prior to the use of any other amounts in the Bond Fund for such purpose.
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On each Interest Payment Date amounts on deposit in the Bond Fund shall be used to make the
following payments in the order of priority listed, with each requirement to be satisfied in full prior to any
use of amounts for the next succeeding requirement: (i) payment of all interest due and owing (including any
past due interest not yet paid) on the Bonds, other than the Series B Bonds, (ii) payment of all principal due
and owing (including any past due principal and any principal due by reason of sinking payments) on the
Bonds, other than the Series B Bonds, (iii) payment of all interest due and owing (including any past due
interest not yet paid) on the Series B Bonds, and (iv) payment of all principal due and owing (including any
past due principal and any principal due by reason of sinking payments) on the Series B Bonds. If the
requirements of any of the preceding clauses (i) through (iv) can be met in part, but not in full, available
amounts will be applied pro rata to payment of the applicable Bonds referenced in such clause.
In the event that amounts in the Bond Fund are insufficient for the purposes set forth in clauses (i)
and (ii) of the preceding paragraph, the Fiscal Agent will withdraw from the Senior Subaccount of the
Reserve Fund to the extent of any funds or Permitted hlVestments therein, and then draw on the Reserve Fund
Policy, to the extent amounts are available under the Reserve Fund Policy, amounts to cover the amount of
such Bond Fund insufficiency. Amounts so withdrawn from the Senior Subaccount shall be deposited in the
Bond Fund and used solely to make payments on the Bonds (other than the Series B Bonds).
In the event that amounts in the Bond Fund are insufficient for the purpose set forth in clauses (iii)
and(iv) of the second preceding paragraph, the Fiscal Agent will withdraw from the Subordinate Subaccount
of the Reserve Fund to the extent of any funds therein amounts to cover the amount of such Bond Fund
insufficiency. Amounts so withdrawn from the Subordinate Subaccount shall be deposited in the Bond Fund
and used solely to make payments on the Series B Bonds.
Investment. Moneys in the Bond Fund and the Special Tax Prepayment Account shall be invested
and deposited in accordance with the provisions of the Fiscal Agent Agreement relating to investment of
moneys. See "APPENDLX D Summary of Certain Provisions of the Fiscal Agent Agreement."
Reserve Fund
Pursuant to the Fiscal Agent Agreement, there is established as a separate fund to be held by the
Fiscal Agent the Temecula Public Financing Authority Community Facilities District No. 01-2 (Harveston)
Reserve Fund, and within such fund two subaccounts designated as the Senior Subaccount and the
Subordinate Subaccount, to the credit of which subaccounts deposits shall be made as required by the Fiscal
AgentAgreement, and to the credit of which Senior Subaccount the Fiscal Agent shall hold the Reserve Fund
Policy. The amount available to be drawn under the Reserve Fund Policy as of the date of issuance of the
2006 Bonds, and together with the amount to be deposited to the Senior Subaccount is equal to the Senior
Subaccount Reserve Requirement as of the date of issuance of the 2006 Bonds. The amount to be deposited
to the Subordinate Subaccount is equal to the Subordinate Subaccount Reserve Requirement as of the date
of issuance of the 2006 Bonds.
Moneys in the Senior Subaccount shall be held in trust by the Fiscal Agent for the benefit of the
()wners of the Bonds (other than the Series B Bonds) as a reserve for the payment of principal of, and interest
and any premium on, the Bonds (other than the Series B Bonds) and shall be subject to a lien in favor of the
Owners of the Bonds (other than the Series B Bonds). The Reserve Fund Policy shall be held by the Fiscal
Agent for the credit of the Senior Subaccount and the benefit of the Series A Bonds, to be drawn upon as
provided in the Fiscal Agent Agreement. In any case where the Senior Subaccount of the Reserve Fund is
funded with a combination of cash and the Reserve Fund Policy, the Fiscal Agent shall (i) deplete all cash
balances and Permitted Investments in the Senior Subaccount of the Reserve Fund before drawing on the
Reserve Fund Policy, and (ii) once all cash balances and Permitted Investments have been exhausted, the
Fiscal Agent shall draw on the Reserve Fund Policy. Moneys in the Subordinate Subaccount shall be held
in trust by the Fiscal Agent for the benefit of the Owners of the Series B Bonds as a reserve for payment of
principal of, and interest and any premium on, the Series B Bonds and shall be subject to a lien in favor of
the Owners of the Series B Bonds.
If Special Taxes are prepaid and 2006 Bonds are to be redeemed with the proceeds of such
prepayment, a proportionate amount in the applicable Subaccount within the Reserve Fund (determined on
the basis of the principal of Bonds to be redeemed and the then outstanding principal ofthe Bonds, the series
of Bonds to be redeemed (i.e., Series A Bonds and Parity Bonds, and Series B Bonds), and in any event
21
without taking into account any amounts available to be withdrawn under the Reserve Fund Policy), shall
be transferred on the Business Day prior to the redemption date by the Fiscal Agent to the Bond Fund to be
applied to the redemption of the Bonds. Notwithstanding the foregoing, in no event shall any transfer be
made pursuant to the Fiscal Agent Agreement which results in the (i) amount on deposit in the Senior
Subaccount being an amount less than the amount of the Senior Subaccount Reserve Requirement to be in
effect following the redemption of such Bonds; or (ii) amounts on deposit in the Subordinate Subaccount
being an amount less than the amount of the Subordinate Subaccount Reserve Requirement to be in effect
following the redemption of such Bonds. Also, in no event shall there be a draw on the Reserve Fund Policy
to make any transfer provided for in this paragraph.
Moneys in the Reserve Fund will be invested and deposited as described in "hlVestment of Moneys
inFunds"below. See APPENDIX D - "Summary of Certain Provisions of the Fiscal Agent Agreement" for
a description of the timing, purpose and manner of disbursements from the Reserve Fund.
Investment of Moneys in Funds
Moneys in any fund or account created or established by the Fiscal Agent Agreement and held by
the Fiscal Agent will be invested by the Fiscal Agent in Permitted hlVestments, as directed by an Authorized
Officer, that mature prior to the date on which such moneys are required to be paid out under the Fiscal
Agent Agreement. In the absence of any direction from an Authorized Officer, the Fiscal Agent will invest,
to the extent reasonably practicable, any such moneys in money market fllllds rated in the highest rating
category by Moody's or S&P, (including those for which the Fiscal Agent or its affiliates or its subsidiaries
provide investment, advisory or other services). See APPENDIX D - "Summary of Certain Provisions of
the Fiscal Agent Agreement" for a definition of "Permitted Investments."
Additional Bonds for Refunding Purposes Only
[CONFIRM: Bonds secured on a parity with the Series A Bonds (each a series of "Additional
Bonds") may be issued for refunding purpose only where the issuance of such Additional Bonds results in
a reduction of Annual Debt Service on all Outstanding Bonds. In addition, the Authority shall obtain a
certificate of a Tax Consultantto the effectthat the amount of the maximum Special Taxes that may be levied
in each Fiscal Year on Developed Property, less an amount sufficient to pay annual Administrative Expense
(as determined by the Treasurer), shall be at least one hundred ten percent (110%) of the total Annual Debt
Service for each such Fiscal Year (i) on the Bonds (other than the Series B Bonds) to remain outstanding
following the issuance of the Parity Bonds and (ii) on the proposed Parity Bonds. ill addition, the District
Value (as defined in the Fiscal Agent Agreement) shall be at least twenty-five (25) times the sum of: (i) the
aggregate principal amount of all Bonds then Outstanding (other than the Series B Bonds), plus (ii) the
aggregate principal amount of the series of Parity Bonds proposed to be issued, plus (iii) the aggregate
principal amount of any fixed assessment liens on the parcels in the District subject to the levy of Special
Taxes, plus (iv) a portion of the aggregate principal amount of any and all other community facilities district
bonds then outstanding (other than the Series B Bonds) and payable at least partially from special taxes to
be levied on parcels of land within the District (the "Other District Bonds") equal to the aggregate principal
amount of the Other DistrictBonds multiplied by a fraction, the numerator of which is the amount of special
taxes levied for the Other District Bonds on parcels of land within the District, and the denominator of which
is the total amount of special taxes levied for the Other District Bonds on all parcel of land against which
the special taxes are levied to pay the Other District Bonds (such fraction to be determined based upon the
maximum special taxes which could be levied in the year in which maximum annual debt service on the
Other District Bonds occurs), based upon information from the most recent available Fiscal Year. See
APPENDIX D - "Summary of Certain Provisions of the Fiscal Agent Agreement."
Nothing in the Fiscal Agent Agreement shall prohibitthe Authorityfrom issuing bonds or otherwise
incurring debt secured by a pledge of Special Tax Revenues subordinate to the pledge thereof for the benefit
of the Series B Bonds.
BOND INSURANCE FOR THE SERIES A BONDS
[Insurer] Municipal Bond Insurance Policy
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[TO COME]
Insurer]
[TO COME]
THE AUTHORITY
The Temecula Public Financing Authority was established pursuant to a Joint Exercise of Powers
Agreement, dated April 10, 2001 (the "Joint Powers Agreement"), by and between the City and the
Redevelopment Agency of the City of Temecula. The Joint Powers Agreement was entered into pursuant
to the provisions of Articles 1 through 4 (commencing with Section 6500) of Chapter 5, Division 7, Title 1
of the Govemment Code of the State of California. The Authority was formed for the primary purpose of
assisting in the financing and refinancing of public capital improvements in the City.
The Authority is administered by a five-member Board of Directors, which currently consists of the
members of the City Council of the City. The Authority has no independent staff. The Executive Director
of the Authority is the City Manager of the City, and the Treasurer of the Authority is the City's Finance
Director. The Executive Director administers the day-to-day affairs of the Authority, and the Finance
Director has custody of all money of the Authority froin whatever source. .
Authority for Issuance
The 2006 Bonds are issued pursuant to the Act and the Fiscal Agent Agreement. ill addition, as
required by the Act, the Board of Directors of the Authority has taken the following actions with respect to
establishing the District and authorizing issuance of the 2006 Bonds:
Resolutions of Intention: On December 11, 2001, the Board of Directors of the Authority
adopted Resolution No. TPFA 01-07 stating its intention to establish the District and to authorize the levy
of a special tax therein, and on the same day the Authority adopted Resolution No. TPFA 01-08 stating its
intention to incur bonded indebtedness in an amount not to exceed $25,000,000 within the District for the
purpose offinancing the Improvements and refunding of the 1998 Winchester Hills Bonds. See "PLAN OF
FINANCE" herein.
Resolution ofF ormation: Immediately following the conclusion of a noticed public hearing
on March 26,2002, the Authority adopted Resolution No. TPFA 02-03 (the "Resolution of Formation"),
which established the District and authorized the levy of a special tax within the District.
Resolution of Necessity: On March 26, 2002, the Authority adopted Resolution No. TPF A
02-04 declaring the necessity to incur bonded indebtedness in an amount not to exceed $25,000,000 within
the District and submitting that proposition to the qualified electors of the District.
Resolution Calling Election: On March 26, 2002, the Authority adopted Resolution No.
TPF A 02-05 calling an election by the landowners for the same date on the issues of the levy of the Special
Tax, the incurring of bonded indebtedness and the establishment of an appropriations limit.
Landowner Election and Declaration of Results: ()n March 26, 2002, an election was held
within the District in which the two landowners eligible to vote, being the qualified electors within the
District, unanimously waived all time limits for holding the election and ballot arguments, and approved a
ballot proposition authorizingthe issuance of up to $25,000,000 in bonds to refund the 1998 Winchester Hills
Bonds, the acquisition and construction ofthe Improvements, the levy of a special tax and the establishment
of an appropriations limit for the District. On March 26, 2002, the Authority adopted Resolution No. TPF A
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02-06, pursuant to which the Authority approved the canvass of the votes and declared the District to be fully
formed with the authority to levy the Special Taxes, to incur the bonded indebtedness and to have the
established appropriations limit.
Special Tax Lien and Levy: A Notice of Special Tax Lien was recorded in the real property
records of Riverside County on May 12, 2002 as Document No. 2002-254462.
Ordinance Levying Special T'Lyes: On April 9, 2002, the Authority adopted Ordinance No.
TPF A02-0 I levying the Special Tax within the District.
ResolutionAuthorizing] ssuance of the 2006 Bonds: On July II, 2006, the Authority adopted
Resolution No. TPFA approving issuance of the 2006 Bonds.
THE COMMUNITY FACILITIES DISTRICT
Location and Description of the District
The District consists of completed homes, occupied homes, homes under construction,
semi-improved land and finished lots, located in the northern portion of the City. The District is bounded
generally on the west by Interstate IS, on the north by the boundary line with the City of Murrieta, on the
east by Margarita Road and by Winchester Hills Road on the south. The property within the District is a
portion of the property governed by the Harveston Specific Plan (as defined below).
Harveston, LLC, LEN-Inland, LLC, the Merchant Builders and other major landowners currently
own or have options to acquire the residential portions of the property in the District which remain to be
developed and are the process of developing it with a mixture of resiaential projects. Merchant builders
include Greystone Homes, Inc., a Delaware corporation ("Greys tone Homes "), Lennar Homes of California,
Inc., a California corporation ("Lennar Homes"), William Lyon Homes, Inc. ("William Lyon Homes, Inc.,"
and Meritage Homes of California, Inc1 (''Meritage Homes of California, Inc."). (As of May 8, 2006, one
additional merchant builder, Christopher Homes, for which PLC Harveston LLC acts as a land bank, had
closed sales on all but one of its homes.) Property in some cases is held in the name of separately created
limited liability companies. See" - Property ()wnership" herein.
Lennar Homes purchased property within the master-planned community from Winchester Hills I
LLC, a California limited liability company ("Winchester Hills I, LLC"), pursuant to a Purchase Agreement
and Escrow Instructions dated June 3, 1998, between Lennar Homes and Winchester Hills I, LLC.
Winchester Hills I, LLC remained owner of most of approximately 111.75 acres within the District. Such
property purchased by Lennar Homes was subsequently transferred to Harveston, LLC (the "Harveston, LLC
Property"). Pursuant to the Agreement and Covenants Running With the Land, dated July 1, 1998, as
amended by the First Amendment to Agreement and Covenants Running With the Land, dated June 29, 200 1
and recorded June 29, 2001 as Document No. 2001-300715 (the "Agreement and Covenants") (see"
Development Agreements" below), Lennar Homes applied for and processed applications for the Harveston
SpecificPlan approval encompassing both the property retained by Winchester Hills I, LLC (the "Winchester
Property") and the Harveston, LLC Property, and submitted an application for approval of a specific plan
covering the Harveston,LLC Property and the Winchester Property. The Agreement and Covenants has been
assigned to Harveston, LLC as successor to Lennar Homes.
The District is part of a master-planned community that includes a large residential area surrounding
the 17-acre lake and park in the center of the community. The District is a portion of a master-planned
cornrnunityplannedfor a total of approximately 2,036' dwelling units, including 1,395 detached homes, 226
attached homes, plus a 300-unit apartment complex and a lIS-unit retirement residence. In addition, there
is expected to be a 2.45-acre retail center in the center of the community. There is a private Lake
1 Acacia \:re,lit Fund 9-A, LL\: acts as a land bank for Meritage Homes of \:alifomia, Inc.
2 Estimated total of 2,1136 includes 7 lots in Fhase 2B which are not within the boundaries of the District.
24
House/Village Club, a park surrounding the lake connected to a paseo to the 20 acre community park, a child
care center, a community facility and an elementary school within the community.
The master-planned community is planned to be developed in four phases, which are referred to as
Phase 1, Phase 2, Phase 2B and Phase 3 and comprise the central portion of the community. Phase 2,
Phase 2B and Phase 3 are also within Temecula Public Financing Authority Community Facilities District
No. 03-6 (Harveston II), for which $4,845,000 aggregate principal amountofbonds were issued in September
2004.
The single-family detached residential portion of Phase 1 is complete with 445 homes built and
occupied. A 300-unit apartment site is substantially completed and occupancies have commenced, and the
retirement residence is expected to be under construction in the near future. In addition, Phase 1 includes
the completed lake and Lake Park, the Welcome Center/Commercial Site, the completed Lake House/Village
Club, the child care center and the Ysabel Barnett Elementary School.
Phase 2 is expected to include 5 different tracts or neighborhoods of homes, containing a total of 596
homes and two of these tracts or product types are a carryover from Phase 1. All 5 tracts are under
construction. As of May 8, 2006, approximately 356 of the units were built and occupied. Phase 2 also
includes the 20 acre community park which is now complete and includes a lighted soccer field and two
lighted baseball fields.
Phase 2B will include two different tracts containing a total of 198 detached homes, though only 191
of the lots are included within the boundaries of the District and included in the Appraisal. The models are
now complete and construction of the production homes is underway.
Phase 3 will include 4 different tracts containing a total of 382 homes, including 64 attached homes
and 318 detached homes. The land is currently in blue-top condition and construction started in the middle
of 2006. There is also a 112 acre commercial site at the southerly end of the community and extending
southerly to the 1-15 Freeway. Rough grading of this site is almost complete though the specific development
and timing of construction has not yet been determined.
As of May 8, 2006, there were nine major landowners within the District, four of which are, or are
affiliated with, Merchant Builders who have projects underway. The Merchant Builders include Greystone
Homes, Inc., a Delaware corporation ("Greys tone Homes "), Lennar Homes, William Lyon Homes, Inc., and
Meritage Homes of California, Inc.' (the "Merchant Builders"). (As of May 8, 2006, one additional
merchant, Harveston LLC - Christopher Homes, had closed sales on all but one of its homes.) In addition,
other property owners include (i)MWHousingPartners III L.P. which acts as aland bankfor Lennar Homes;
(ii) The Morgan Group ("The Morgan Group") which acquired the apartment site in June 2004; (iii)
Temecula Retirement Residence, a which owns an approximately 2.29 acre site for a proposed
retirement residence; (iv) Harveston, LLC which owns the approximately 2.45 acre Welcome Center site;
and (v) Winchester Hills I, LLC, a California limited liability company which owns most of the 111.75 acre
commercial site.
LNRProperties is the developer of the apartment complex, and The Morgan Group will continue
to own and manage the apartments. MW Housing Partners III L.P. ("MW Housing Partners III L.P.")
acquired the residential land in Phase 3 from Harveston LLC in November 2005. MW Housing Partners III
L.P. is not an affiliate ofLennar Homes but is a land bank entity for Lennar Homes, and Lennar Homes has
indicated that it is planned that there will be multiple takedowns of lots in Phase 3 by Lennar Homes from
MW Housing Partners III L.P. As of , 2006, lots had been acquired by Lennar Homes.
Specific Plan
The Harveston Specific Plan ("Harveston Specific Plan") was adopted in Augnst 2001. The
Harveston Specific Plan serves as a planning gnide to implement the intent of the City's General Plan. The
Harveston Specific Plan development concept includes a centrally located lake/park complex. Uses such as
recreation, education andresidential dwellings will be provided adjacent to or within a Village Center which
Acacia \:redit Fund 9-A, LL\: acts as a land bank for Meritage Homes of \:alifomia, Inc.
25
is proposed to include a variety of uses such as retail, restaurant, office, daycare, worship and a private club
facility and fitness center.
Environmental Conditions
EnvironmentalImpactReport. In connection with the Harveston Specific Plan approval and pursuant
to the Agreement and Covenants, Lennar Homes was responsible for the application and processing of an
environmental impact report (the "EIR") for both the Harveston, LLC Property and the Winchester Property.
The EIR was approved in Augnst, 2001.
Biological Resources. Based upon the biological studies performed for the site, the property within
the District does not include significant onsite biological resources. The Harveston Specific Plan proposes
an arroyo park, which will include the creation of a riparian habitat to be developed consistent with the
mitigation requirement of the u.s. Army Corps of Engineers (the "Corps of Engineers") and California
Department ofFish and Game ("CDFG"). Work on the riparian habitat has commenced.
AlitigationRelating to FVaters of the r Jnited States of America. The development within the District
required the construction of a culvert and the fill of approximately 2.89 acres of non-wetland waters of the
u.s. tributary to Santa Gertrudis Creek. The Corps of Engineers has jurisdiction over developments in or
affecting the navigable waters of the United States of America pursuant to the Rivers and Harbors Act and
the Clean Water Act. On June 30,1999, the Corps of Engineers determined that the activity complied with
the terms and conditions of the nationwide permit issued under Section 404 of the Clean Water Act,provided
that the activity met the criteria in the permit terms and conditions. The culvert and fill was completed in
February, 2002 and facilities were certified in February, 2002.
Streambed Alteration Agreement. Lennar Homes filed a request for a Section 1603 Streambed
Alteration Agreement with the CDFG. The CDFG and Lennar Homes entered into an Agreement Regarding
Proposed Stream or Lake Alteration in April, 1999. The Agreement provides for the construction of a master
planned community which resulted in the filling of approximately 6,000 feet of two channels and a culvert
crossing over a third channel. The construction of the culvert and the filling of the channels was completed
by September 2002. Mitigation consists of establishing an over-story riparian area of approximately eight
acres along one channel. Installation of the required over-story riparian area has commenced. Such area will
be subject to a five year maintenance period.
National Pollution Discharge Elimination Svstem Permit and Storm Water Pollution Prevention
Plan. Pursuant to the Federal Clean Water Act (Section 402(g)) and State General Construction Activity
Storm Water Permit, a National Pollution Discharge Elimination System (NPDES) permit and storm water
pollution prevention plan was required from the California Regional Water Quality Control Board for
grading and construction of areas greater than five acres. Lennar Homes had a revised Storm Water Pollution
Prevention Plan prepared which includes property within the District in conformance with the California
NPDES General Permit No. CAS000002for Storm Water Discharges Associated with Construction Activity
(ConstructionPermit.). The permit and storm water pollution prevention plan were approved by the Regional
Water Quality Control Board in October, 2001.
Toxicmaterials are not known to have been treated, stored, disposed, spilled or leaked in significant
quantities onto the property within the District and no contaminated soils were found on the site. Prior to
rough grading, the land was maintained as private vacant open space and free range grazing. The property
was vacant for some time before being acquired by Lennar Homes. No significant spills or disposals of
gasoline or diesel fuel are known to have occurred.
Development Agreement
Lennar Homes, Winchester Hills I, LLC and the City entered into a development agreement (the
"Development Agreement"), recorded January 16, 2002, as Instrument No. 2002-026470, encompassing
property within the District. Harveston, LLC is the successor to Lennar Homes as owner and developer of
such property. For purposes of the Development Agreement, the proposed development includes the
improvement of the sites within the District affecting the structure, improvements and facilities within the
District, including but not limited to grading, the construction of infrastructure and public facilities related
to the property within the District (whether located within or outside the Harveston Specific Plan area), the
26
construction of structures and buildings and the installation oflandscaping. The widening of the Y nez Road
Bridge over San Gertrudes Creek is described in the "First Operating Memorandum to the Recorded
Development Agreement among Lennar Homes Inc. and Winchester Hills I, LLC and the City ofTemecula,"
dated as of April 11, 2003, between Harveston, LLC, and the City.
Pursuantto the terms of the Development Agreement, Harveston, LLC and Winchester Hills I, LLC
have the right to develop the property within the District in any manner consistent with the City's approved
Harveston Specific Plan, and applicable rules, regnlations and official policies. The infrastructure is
expected to be completed as development occurs, with final sales to homeowners by the end of 2008. The
City has agreed that Harveston, LLC and Winchester Hills I, LLC shall have the right to develop theproperty
in such order, at such rate and at such time as Harveston, LLC and Winchester Hills I, LLC deem appropriate
within the exercise of its subjective business judgment, subject only to any timing or phasing requirements
set forth in the development plan or the phasing plan as set forth in the Development Agreement and as long
as the property encompassed by the Development Agreement is constructed in a manner consistent with the
City's existing land use ordinances.
By entering into the Development Agreement, Harveston, LLC and Winchester Hills I, LLC obtained
a vested right to proceed with the development encompassed by the Development Agreement in accordance
with the Harveston Specific Plan. However, development remains subject to any remaining discretionary
approvals required in order to complete development as contemplated by the Harveston Specific Plan.
Termination of the Development Agreement by one party due to the default of another party will not
affect a right or duty emanating from City entitlements or approvals relating to the property within the
District.
The Development Agreement was approved and entered into pursuant to California Government
Code Section 65864, et seq. (the "Development Agreement Law"). The Development Agreement Law
provides that a developer can obtain a vested right to develop its real property pursuant to a validly executed
development agreement. ()ne appellate case in California, Santa Alargarita Residents v. San Luis Obispo
County Bd. of Supervisors, has held that development agreements are enforceable under the Development
Agreement Law. However, the development agreement in that case did not address vested right to build the
development as currently planned. Section 3.5.5 of the Development Agreement allows the parties to enter
into "operating memorandum" which do not amend the Development Agreement but which implement the
terms of the Development Agreement or provide for "changes, adjustments, or clarifications that are
appropriate to further the intended purposes" of the Development Agreement. The "First Operating
Memorandum to the Recorded Development Agreement Between Lennar Homes Inc., and Winchester
Hills I, LLC and the City of Temecula" was approved on April 11, 2003, and recorded as Document
No. 2003-293648 in the Official Records of Riverside County on April 25, 2003; the "Second Operating
Memorandumto the Recorded DevelopmentAgreement Between Lennar Homes Inc. and Winchester Hills I,
LLC and the City of Temecula" was also approved on April 11, 2003, and recorded as Document
No. 2003-293649 in the Official Records of Riverside County on April 25, 2003; and the "Third Operating
Memorandumto the Recorded Development AgreementBetweenLennar Homes Inc. and Winchester Hills I,
LLC and the City of Temecula" was approved on May 10, 2004, and recorded as Document
No. 2004-0418836 in the Official Records of Riverside County on June 2,2004. The widening of the Ynez
RoadBridge over Santa Gertrudes Creek is described in the First Operating Memorandum. The First, Second
and Third Operating Memorandum each describe and clarify the off-site public improvements required by
the Development Agreement and the conditions of approval of the land use entitlements and provide a
schedule for the issuance of up to 954 building permits prior to completion of the community park and up
to 1,535 building permits prior to the completion of the bridge widening improvements and certain off-site
public improvements and further provide for the withholding of building permits if the required off-site
public improvements are not progressing as scheduled. The community park and the bridge widening were
completed such that there was no interruption in receiving building permits as needed. See
"BONDOWNERS'RISKS Failure to Develop Properties" and" Ballot Initiatives and Legislative
Measures" herein.
Covenants. Conditions and Restrictions. All of the parcels in the District are subject to recorded
covenants, conditions and restrictions that provide for a levy of homeowners' association assessments, on
a basis subordinate to the lien of the Special Taxes.
27
28
Settlement of Litigation Regarding Development
In February, 2002, Lennar Homes entered into a Settlement Agreement relating to a referendum
petition opposing the Ordinance approving the Development Agreement. Harveston, LLC has fulfilled all
of the obligations of Lennar Homes under the Settlement Agreement, including payment of$150,000 to the
City for park expansion.
In September, 2001, a referendum petition opposing Temecula Ordinance No. 01-08 approving the
Development Agreement was submitted by a resident to the City for determination of whether it had been
signed by the requisite number of Temecula registered voters. On October 10, 2001, the Temecula City
Clerk submitted the referendum petitions to the Registrar of Voters of the County of Riverside for
verification of the signatures on the petitions. On October 15,2001, the City filed an action for declaratory
relief naming Lennar Homes and the author of the petition seeking to have the court declare whether the
referendum petitions were valid. On December 21, 2001, the City rejected the petitions as invalid and
dismissed its lawsuit.
In February, 2002, Lennar Homes entered into a Settlement Agreement whereby the resident
removed his previous opposition to the development within the Harveston Specific Plan area and agreed not
to file a lawsuit or otherwise challenge in court or before any government agency with jurisdiction over the
development within the Harveston Specific Plan area, any ofthe current or future entitlements vested by the
Development Agreement or provided for in (lrdinance No. 01-08, including, but not limited to, any effort
to challenge the City's rejection of the referendum petition. In return, Lennar Homes agreed to enter into
good faith negotiations with the City to voluntarily donate an additional three acres of parkland. In addition,
Lennar Homes agreed to donate up to an additional $150,000 to the City at the time of the donation of
parkland for the purpose of improving the community park and to pay to the resident an amount representing
general damages sustained by him as a result of being named as the defendant in the declaratory relief action
tiled by the City.
Acquisition of 1m provements
The Authority and Harveston, LLC have entered into an Acquisition Agreement (the "Acquisition
Agreement") dated as of Augnst 1, 2002, as supplement by Supplement No.1 to Acquisition Agreement
dated as of November 25, 2003. Under the terms of the Acquisition Agreement, the Authority has acquired
the Improvements from Harveston, LLC upon completion of various discrete components of infrastructure
and inspection thereof by the City. The Acquisition Agreement provides that the infrastructure would be
acquired for an amount based upon the documented Actual Cost (as defined in the Acquisition Agreement)
thereof or for such other amount as may be agreed upon by Harveston, LLC and the Authority.
The proceeds of the Prior Bonds, together with other available moneys, were applied to pay the
redemption price of $11,025,000 of the 1998 Winchester Hills Bonds on the date of issuance of the Prior
Bonds and to establish an escrow fund for the payment of $560,000 of the 1998 Winchester Hills Bonds
maturing September 1, 2004 on their sinking fund payment dates or maturity date. Proceeds of the Prior
Bonds in the amount of approximately $5,150,000, together with earnings thereon, have been, or will be,
applied to acquire or construct certain street and signal improvements, storm drain improvement and park
and recreation improvements to be constructed within or in the vicinity of the District. The Improvements
are substantially complete.
Property Ownership
The information about the development of the property within the District, Harveston, LLC, LEN -
Inland, LLC, theAlerchant Builders, and the other property owners contained in this Official Statement has
been derived from the Appraisal and information generally available to the Authority but has not been
independently confirmed or verified by the Underwriter. the District or the A uthority. Such information is
included because it may be relevant to an informed evaluation of the security for the 2006 Bonds. However,
because ownership of the property may change at any time, no assurance can be given that the planned
development will occur at all. will occur in a timelv manner or will occur as presentlv anticipated and
described below or that the Alerchant Builders will acquire or own the Property at all. No representation
is made herein as to the accuracy or adequacy of such information, as to the experience, abilities or financial
resources of the Alerchant Builders or any other landowner. or as to the absence of material adverse
29
changes in such information subsequent to the date hereof or that the information given below or
incorporated herein by reference is correct as of any time subsequent to its date.
Harveston. LLC, LEN-Inland. LLC, the Alerchant Builders and other property owners are not
personallvliable for payment of the Special Taxes or the 2006 Bonds. and thefollowing information should
not be construed to suggest that the Special T{[yes or the 2006 Bonds are personal obligations or
indebtedness of Harvest on, LLC, LEN-Inland, LLC, theAlerchant Builders or other property owners or that
Harveston. LLC, LEN-Inland. LLC, theAlerchant Builders or other property owners will continue to own
their respective parcels of land.
30
Description of Project
Table 2 below sets forth information regarding the projects being developed in the District. While
the Merchant Builders have acquired most of their lots, and Greystone Homes has acquired 60 of its 113 lots
pursuant to an option agreement, there can be no assurance that Greystone Homes will close escrow on its
remaining 53 lots Update status of take downs by Greystone Homes] within the District at the times provided
in the (lption Agreements or at all.
Table 2
Temecula Public Financing Authority
Community Facilities District No. 01-2 (Harveston)
Property Ownership and Development Status
Units Units
Est. Completed Under Status of
Name of Total asof Construction Development
Landowner / Number M\',li8, asof as of
Merchant Builder(l) Tract Name of Units 2 6 May 8, 2006 May 8, 2006 Description of status
Phase 1
ONner Occupied Sherbourne 711 711 Built out Built out Built out
ONner Occupied Well~leyCourt 711 711 Built out Built out Built out
ONner Occupied Ea"ton Place 88 88 Built out Built out Built out
ONner Occupied Lake Front 139 139 Built out Built out Built out
Cottages
ONner Occupied Chathman .E. .E. Built out Built out Built out
Subtotal 445 445
Pllase 2 and 2B
LEN-Inland, LLC (53) ~) Ashville 113 43 35 Final 43 completed homes
Greystone Homes (17(- approved (including 3 models), 3.5
homes under constructIOn,
and 35 lots in a near
finished condition.
William L yon Home~, Savannah 162 5 78 Final 5 completed model~, 78
Inc. (162) approved production home~ under
con~truction, 10 lot~ in near
fini~ed condition: 69 lot~
in graded blue-top
condition.
LennarHome~(10) Auburn Lane 119 109 III Final 109 home~ (including 3
approved models) sold, 10
production homes under
construction.
Grey...tone Home~ (0) Sau~alito 109 109 II Final 109 home~ (including 3
approved model~) completed and
sold.
Substantially ONner Walden 93 93 0 Final 92 homes sold: 1
Occupied (1 com~leted approved production home completed
home O\Vned by LC and un~old.
Harveston LLCI
Christopher Homes)
Acacia Credit Fund 9-A Charleston 106 4 25 Final 4 completed model homes:
LLC (40) - Meritage approved 25 production home~ under
Home~ of California, con~truction, and 77 vacant
Inc. (66)ul lot~.
Acacia Credit Fund 9-A Aberdeen 85 .!i II Final 3 completed-sold homes: 3
LLC (26) Meritage approved comp.leted unsold homes
Home~ of California, (moile! home~): 13
Inc. (66fl production home~ under
construction, 66 vacant lots
Subtotal 787 369 161
Other Properlies
l\1W Hou~in:? Partner~ Pha"e 3-- 382 II II [Final 3 model~ under
IIIL.P (382)'tI-LeImar Re~idential Land approved for con~truction: 61 lot~ for
Home~ 318Iot~: attached home~ in ma"~
Tentative for graded ~uperpad condition
64Iot~] and 3181ot~ III graded
blue-top condition.
31
The Morgan Group (22)
Cape May
Apartments
300
84
216
Final
approved
8 building~ of 22 apartment
buildings complete with a
total of84 completed units;
all remaining units are
under con~tiuction
Vacant and in rough graded
condition.
Temecula Retirement
Re~idence (115 Apt~., 3
Comm Spaces)
Harveston, LLC
Retirement
Re~idence
(2.29 acres)
Comm. Site!
Welcome Center
(2.45 acre~)
115
II
Final
Approved
Final
approved
Welcome Center with
~econd floor and open
office ~pace, inc1ude~
paved parking area and
landscaped area.
Subtotal
Total
N/A
Comm. Site
(111.75 acre~) ~
800 84 216
1,594 385 435
N/A
Winche~ter Hill~ L LLC
Tentative
approved
vacant land, rough graded
(1) Ownership of home sites indicated in parenthesis.
(2) 3 models in Ashville acquired by GJ\1AC in August 2005 as land bam,- As ofJrme ,2006, Greystone Homes has acquired an aggregate of lots from LEN-Inland, LLC.
(3) As of Jrme 27,2006, 40 lots in the Charleston project were owned by Acacia Credit Frmd 9-A LLC Meritage Homes of California, Inc.. As of Jrme
27,2006, 26 lots in the Aberdeen project were owned by Acacia Credit Frmd 9-A, LLC and 66 lots {lnf.t ~QJ.PA~jy.'g&iffifPmJlYs of California, Inc. There are 92 lots within the
Aberdeen project but only 85 are within the District and subject to the levy of Special Taxes.
(4) Actual munber of rmits may Val}'. l\1W Housing Partners III L.P., is a land banK for Lermar Homes. As of Jrme _, 2006, Lermar Homes has acquired __lots from MW Housing
PartnersIII,L.P.
32
Description of Projects.
The projects, together with the estimated lot sizes, unit SIzes, base sales pnce ranges, sold,
completed, under construction or vacant, are set forth below.
Table 3
Temecula Public Financing Authority
Community Facilities District No. 01-2 (Harveston)
Description of Project
(As of May 8, 2006)
Minimum Estimated
Lot Size Unit Size Estimated Under Total
Project Name (Sq. Ft.) (SQ. Ft.) Sales Price Range Sold Complete(l) Const. Vacant Units
Built Out Projects
Lennar Homes
Sherbourne 6,000 2,806-3,333 $510,000-$710,000 70 70 0 0 70
Easton Place 4,700 2,202-2,587 $450,000-$555,000 88 88 0 0 88
US Homes
Wellsley Court 6,800 2,811-3,985 $549,500-$755,000 70 70 0 0 70
Lake Front Cottages 3,000 1,991-2,259 $400,000-$625,000 139 139 0 0 139
Chathrnan 5,850 2,521-3,594 $560,000-754,000 78 78 0 0 78
Total Built Out Projects: 445 445 0 0 445
Projects Under
Construction
Greystone Homes
Ashville 2,500 1,684-2,141 $385,990-$418,990 43 43 35 35 113
Sausalito 4,250 1,873-2,537 $428,000-$539,000(2) 109 109 0 0 109
PLC Harveston LLC -
Christopher Homes
Walden 4,950 2,770-3,393 $502,500-$690,00d3l 92 93 0 0 93
Lennar Homes
Auburn Lane 3,100 1,767-2,101 $432,000-$486,000" ) 109 109 10 0 119
William Lyon Homes, Inc.
Savannah 2,000 1,539-2,075 $344,900-$392,400 0 5 78 79 162
Acacia Credit Fund 9-A
LLC - Meritage Homes of
California, Inc.
Aberdeen 4,250 2,334 - 2,757 $501,990-$528,990 3 b 13 bb 85
Charleston 3,100 1,780-2,181 $430,990-$470,990(5) --2. --"- 25 E 106
Subtotal: 353 359 123 114 596
Other Projects
MW Housing Partners L.P Residential Land (est. 382 unitS)(OI 0 0 3 379 382
33
The Morgan Group Cape May Apartments (300 unitS) N/ 84 216 0 300
A
T emecula Retirement Retirement Residence (115 apartments) N/ 0 0 115 115
Residence A
HarvestoIl, LLC Commercial Site! Welcome Center (7) (7) (7) (7) (7)
Winchester Hills I, LLC Commercial Acreage(lll. 75 acres) N/ N/A N/A 111 75 111 75
A acres acres
Residential Totals, 682 762 475 792 2,029
excluding commercial
acreage
(11
Includes Model Homes
As of May 8, 2006, represents range oflast builder sales~
As of May 8, 2006, represents range oflast builder sales;
Sales price information is as of January 25,2006 because there was no new pricing available as of May 8,2006
As of May 8, 2006, the Merchant Builder only had updated pricing on two of the four floor plans.
As of Jlme , 2006, Lennar Homes has acquired lots from MW Housing Partners III, LLC
The Commercial Site! Welcome Center is eX1Jected to be converted to a commercial ll<;e in the future.
Ie)
'"
'"
(~, ,
10.'
'"
34
Special Tax Collections
The maximum Special Tax onResidential DevelopedProperty authorized for the 2005-06Fiscal Year
in the District ranged from $200 to $1,574 per unit of Residential Developed Property. For the 2005-06 Fiscal
Year, Special Taxes in the amount of approximately $765,604 were levied against approximately 644 homes
of Residential Developed Property in the District. Of those parcels, 49 were delinquent as of June 1,2006.
The total amount owing with respect to the delinquent parcels for the 2005-06 Fiscal Year totaled
approximately $55,455.50, or approximately 5.23% of the total amount levied. For the 2005-06 Fiscal Year,
no Special Taxes were levied on the Undeveloped Property.
Table 4 below sets forth the Special Tax collections for Fiscal Years 2002-03 through 2005-06.
Table 4
Temecula Public Financing Authority
Community Facilities District No. 01-2 (Harveston)
Special Tax Collections'!)
Total
No Of Special Number of ArnOlmt of Percentage of
Parcels Ta.'\:es Special Ta.'\: Special Ta.'\: Special Ta.'\:
Fiscal Year Levied'2) Levied1) Delinquencies'2) Delinquencies'2) Delinquent'2)
2002-2003 26 $893,468.90 0 $0.00 0.00%
2003-2004 332 589,182.80 b 721.64 0.120/0
2004-2005 329 453,451.88 33 33,964.95 7490/0
2005-2006 644 765,604.14 67 55,455.50 7.240/0
Percentage of
Special Tax
Delinquent as of
Jlme 1, 2006
Nmnber of
Special Ta.'\:
Delinquent as
ofhme 1,
2006
0.00%
o
o
0.000/0
0.130/0
5.230/0
49
,f,
,2)
Information provided by the \:ity of T emecula.
Fiscal year Special Tax collections are received by the District from the County in several installments. The
information presented is based on information provided by the City ofT emecula with respect to the payment received
from the County in May of each year following receipt of the April lOth collection of the applicable Fiscal Year
Total Special Taxes levied varies from Fiscal Y ear to Fiscal Year because the Prior Bonds bore a variable interest rate
and included a levy on Undeveloped Property in the initial years. The Fiscal Year 21 (1)5-1 16 Special Tax levy was on
Developed Property with no Special Tax levy on Undeveloped Property
,"
Source: Psomas
There have been no prepayment of Special Taxes in the District.
Direct and Overlapping Debt
Table 5 below sets forth the existing authorized indebtedness payable from taxes and assessments that
may be levied within the District prepared by Psomas and dated as of June 1,2006 (the "Debt Report"). The
Debt Report is included for general information purposes only. In certain cases, the percentages of debt
calculations are based on assessed values, which will change significantly as development occurs and assessed
values increase to reflect building values. The District believes the information is current as of its date, but
makes no representation as to its completeness or accuracy. Other public agencies, such as the City, may issue
additional indebtedness at any time, without the consent or approval of the District or the Authority. See"-
(lverlapping Community Facilities and Assessment Districts" below.
The DebtReport generally includes long term obligations sold in the public credit markets by public
agencies whose boundaries overlap the boundaries of the District in whole or in part. Such long term
obligations generally are not payable from property taxes, assessment or special taxes on land in the District.
In many cases long term obligations issued by a public agency are payable only from the general fund or other
revenues of such public agency. Additional indebtedness could be authorized by the District, the City or other
public agencies at any time.
35
The District has not undertaken to commission annual appraisals of the market value of property in
the District for purposes of its Annual Reports pursuant to the Continuing Disclosure Agreement, and
information regarding property values for purposes of a direct and overlapping debt analysis which may be
contained in such reports will be based on assessed values as determined by the County Assessor. See
APPENDLX E hereto for the form of the Continuing Disclosure Agreement.
36
Ta ble 5
Temecula Public Finance Authority
Community Facilities District No. 01-2
Secured Pronertv Tax Roll and Direct and OverlanniO!, Deht
ASSESSED VALUE
Fi~cal Year 2()()5-06 Secured Roll A~~e~~eJ Valuation
SECURED PROPERTY TAX ROLL
Desoiption ofTm: Bill
uenenll purpo~e
Temecula Unified School District
Metropolitan Water Debt Service
EMVVD U-8 Debt Service
RCWD R Div Debt Service
R&T Code 482 Penalty A~nt
NPDES - Santa Margarita
Temecula ParksiLighting Svs.
Temecula Re~iJential Street Light~
Temecula Perimeter LanJ~caping
Temecula Tra~iRecyc1ing
Temecula Weed Abatement
Rancho Ca Water Fire Service
MWD Standby
EMVVD Standby-Combined Charge
CFD 03-06 lHarveston III
CFD 01-2 (Harve~ton) Special Tax B
CFD 01-2 (Harve~ton) Special Tax A
Fiscal Year 2005-06 Total Propn1y Tm: Liability
Tvpe
f%
GO
GO
GO
GO
SPL
SPL
CSD
CSD
CSD
CSD
SPL
SPL
W1R
W1R
CFD
CFD
CFD
Total Parcels
Levied
;SOY,:S:Sl
39,783
430,515
3L403
33.466
6.(l60
59,242
28,098
23Jl98
I1J)60
23.334
59
1.354
209,944
212,481
693
995
644
Total Levv
$1, IO:S,046,.:I.:I)
$4,321,348
$5,247,282
$1.173,671
$llU57,895
$1.734.923
$401,183
$3,014,973
$593,157
$1.268.186
$4,454,927
$28,280
$152,719
$2,733,248
$4,505,616
$355,573
$199.352
$765,604
LAND SECURED BOND INDEBTEDNESS
TOTAL PROPERTY TAX AS A PERCENTAGE OF FISCAL YEAR 2005-06 ASSESSED VALUATION
Outstrmdinp- TJ;rpr! and Ovprlrmn;IW Rondpd TJpht
CFD 03-06 (Harveston 11)
CFD 01-2 (Harveston) Special Tax NIl
Total Land Secured Bonded Deb!"'
Authorized Direct alld Overlappinf{ Bonded Debt
Cl< U ().:I-()6 (Harve~ton 11)
CFD 01-2 (Harve~ton) Special Tax A
Total Land Secured Bonded Deb!"'
TYJ2f' J.uIJPd tJJJfstrl11dinq-
CFD $4,S45,000 $4,S45,000
CFD $17,310,000 $17,310,000
Tvve Authorized Unissued
Cl<U :1)),)lH),l)lH) :1)6)),lH)()
CFD $19,810,000 $2,5()(),()()()
TOTAL OUTSTANDING AND UNISSUED LAND SECURED BONDED INDEBTEDNESS
GENERAL OBLIGA nON BOND INDEBTEDNESS
Outstallding Direct and Overlappinf{ Bonded Debt Tvve
1emeCUla UmIletl ::::iCllOOI UI~trJCt Lii,)
EMVVD U-8 Debt Service GO
RCWD R Div Debt Service GO
Metropolitan Water Debt Service GO
Total General Obligation Bonded Debt'l'
>4 IJthor;zpd TJ;n>r! and Ovprlrmn;np- Rondpd TJpht TvnP
lemecula Umtled ~chool Ulstnct W
EMVVD U-8 Debt Service GO
RCWD R Div Debt Service GO
Metropolitan Water Debt Service GO
Total General Obligation Bonded Debt'll
Issued(41
:1)6),lH)(!,(HH)
$16,000,000
$130,932,007
$850,000,000
>4 IJthorizpd31
$6),UUU,UUU
$16,000,000
$130,932,007
$850,000,000
$301,942,358
Parcels Levied %
inCFD Applicable Levv Amount
YY6 n.116% $.:I,l)lO,/.:I:S -
996 2.297~'o $99,264
996 0.402% $21.075
996 2.822%) $33.118
996 5.232%) $541.972
2 0.055%) $961
380 0.319% $1,280
992 2.751% $82,936
958 4.148%) $24,601
958 7.554%) $95,800
309 1.324%) $58,994
309 2.122%) $600
17 3.378%) $5,158
972 0.305% $8.343
779 0.260% $11.707
686 99.600% $354,152
995 1 ()().()()O%) $199.352
644 1 ()().()()O%) $765,604
$5,315,656
1.76%)
Parcels Levied 00 Amount of
;nr'FTJ >4nnlirahlp TJpht
6"6 99.600% $4,S25,636
644 100.000% $17,310,000
$:2:2,1.:1),6.:16'
Parcels Levied % Amount of
inCFD Applicable Debt
b'b ';J';J.6l)()% :1)6)L,.:I(O;L
644 1 ()().()()O%) $2,5()(),()()()
$3,152,382
$20,462,38
2
Parcels Levied %
Outstandinf{(41 inCFD Applicable
:1)46.4(o;),lHH) YYb L.L';JIV/o
$7,975,000 996 2.822%)
$111.476,729 996 5.232%)
$419,390,000 996 0.018%
Parcels Levied %
rrn;ssIJpd"1 ;nr'FTJ >4nnlirahlp
>U YY6 :l.J91~'o
$0 996 2.822%
$11 996 5.232%)
$11 996 0.018%)
TOTAL OUTSTANDING AND UNISSUED LAND SECURED BONDED INDEBTEDNESS
TOTAL OF ALL OUTSTANDING. DIRECT AND OVERLAPPING DEBT
TOTAL OF ALL OUTSTANDING AND UNISSUED DIRECT AND OVERLAPPING
DEBT
37
Amount of
Debt
:1)l,()61,1(O;';J
$225,035
$5,832,963
$77,111
$7,202,S9S
Amount of
TJpht
>u
$0
$11
$11
$11
$20,462,382
$24,512,898
$27,665,280
(I! Includes outstanding bonds prior to issuance ofthe 2006 Bonds.
Ie) Additional bonded debt or available bond authorization may exist but is not shown because a ta.'\: was not levied for the
referenced fiscal year.
Ij) Although the proceeding for the formation of the District authorized $25,000,000 of Bond.;;, the District covenanted in the Bond
Indenture relating to the issuance ofthe CFD No 03-6 Bonds to limit the total authorized issuance to $19,810,000 However, the
principal aIllOlmt of the refimding bond.;; may exceed $19,810,000 In the Indenture, the District has covenanted not to issue
parity senior bonds except for refimding purposes.
14) Data provided by issuing agency as of September 2005
Source: Psornas.
Estimated Value-to-Lien Ratios and Estimated Special Tax Allocation by Property Ownership
Thevalues, direct and overlapping debt and total tax burden on individual parcels varies amongparcels
within the District. The value of individual parcels is significant because in the event of a delinquency in the
payment of Special Taxes, the District may foreclose only against delinquent parcels. As of May 8, 2006, the
parcels in the District have an appraised value-to-lien ratio of approximately 24.33: 1', calculated with respect
to the 2006 Bonds and including $4,S25,636 of the $4,S45, 000 aggregate principal amount of the special tCL\"
bonds issued by Community Facilities District No. 03-6 (Harveston ll). which overlaps onlv a portion of the
District
Basedon ownership information as ofthe [May 8,] 2006 date of value of the Appraisal, approximately
[ ]% of the estimated Special Taxes in Fiscal Year 2006-07 were payable by the Merchant Builders and
other major property owners.
Table 6 show the amount ofthe Special Tax for which the Taxable Property within the District would
be responsible and the percentage ofthe estimated total amount ofthe Special Tax for Fiscal Year 2006-07.
Table 6 presents the amounts based on the current Developed and Undeveloped Property allocation.
There can be no assurance that Merchant Builders who have not closed escrow on their lots within the
District will do so at the times indicated or at all. Actual amounts levied in the District in Fiscal Year 2006-07
for the 2006 Bonds and thereafter will differ based on actual sales by Merchant Builders to home buyers. The
Special Tax in Fiscal Year 2006-07 will be calculated pursuant to the Rate and Method based on the parcel
configuration at such time as needed to levy the Special Tax Requirement for the 2006 Bonds andadrninistrative
expenses ofthe District.
Developmentis expected to continue as the five merchant builders continue to build and sell houses in
their active projects.
lPreliminary, subject to change.
38
Table 6 below sets forth the allocation of Special Taxes based on Developed Property and Undeveloped Property categorization as of April 1, 2006,
the date prior to which a building permit must be issued to be categorized as Developed Property under the Rate and Method and the value-to-lien analysis
for the District as of the May 8, 2006 date of value of the Appraisal:
Record OwnerDer ADDraisatr,
Phase 1'"
Hc,m~c,wn~r::;
Phase2and2B
,. frpy::;tCll~ Hc,m~:; and LEN-Inland,
LU'(4,
Wl1h:;IjjLY'AjH'Ajj~s,II1'-"
Li11llarHc,m~:j.6"
'pyst<Aj~H'_'lIjd7)
:-:llh:;tantially' 'wn~r' ""~lpi~d ,:1
'_"_'IIJpld~d l1'Ajj~ '_"'1l1~d by PLC H:;I'1'~sb_'l1
LU 'I,. 'hri:;tc,phi'l' Hc,m~:; I
:-:llhtc,tal Pha:;~ Z
Phase2B
A,'a"ia ,. 'r~dit Flmd w_A LV '- M~ritag~
H'Ajj~S ,_,I '~~hl'_'nll~, IB<-'
A'_'~'_'l~ '~r~dlt FUlld~" ALLC M~nb~~
Hcrn~:;,-,f"'alifc,mia,In,'
SubbA~l Pl1~s~ 2E
Phase 3 and (Jther Properties
J:v[1N H'_'USllj~ p:;rtl1~rs III Lp.""
Tl1~M'-'fl;:;l1'}n)up
T~m~,~da R~tiri1lli1lt R ~:;id~n,'~
Haf1,~:;tc,nLL'"
Wllj,_'l1~sI:~r H1l1s I, LLC
Subt,A:;l Pl1:;s~ 3 :jJjd ')t1j~r Fr'_)p~rtl~s
>!Preliminary, ~ubject to change.
Nekrhborhood
Varic'll:;
A:;hvill;i"
S:;V:;llll:;j-j"
AJlhlllllLane""
S:;us:;ht<J"
Waldi'll'O',
'~I1:;rld:<_'l1
AJ-,~rd~i'll
R~Sld~l1l1~l L~l1'1"')
'~~p~ M~y Ap:;rtljj~l1tS
R~tir~m~nt R ~:;id~n,'~
Slt~
"'-,mmi'l'"ial:-:it~j
W~k'-,m~ "'~nti'l'
'~'-'lIlljj"'E'l~l A'_'f'O~~~ Slt~
, .'thi'l'TTnd~v~j,-1,~d
Pr'-'p~rty'l")
IJ~v~k1-'~d
"''-,mmi'l'"iar'l''
Table 6
Temecula Public Financing Authority
Community Facilities District No. 01-2 (Harveston)
Fiscal Year 2006-07
Allocation Based on Developed and Undeveloped Property"
Special Tax Allocation As of April 1, 2006 and
by Appraiser's Categories and Record Owner As of May 8, 2006
Number
ill
Unitso', Acreage''''
Estimated FY
200607
Developed
AS.Signed,.,."
SoeClalTax
ill
Allocation
Estimated FY
2006-07
Undeveloped
SoecialTax'
Percentage
Estimated
Total
SoecialTax'
44",
t'J,7t'J $",,",":-:111111 $111111 $"""''':-:111111 4", 4:-~io
"41 $4t'J,111111111 $',t'J21 $4",t'J,1 421%
111)2 $I}I)I) $7,3t;3~:<< $7,3t;3~:<< IJt;2~'"
112, $"',72"111 $111111 $"',72"111 7"",%
1322 $llt;,7::<t;')I) $I}I)I) $11t;,7::<t;')I) ~:;. ~:il ~'"
ill.!.!. $n"",J21111 ~ ~1,"",PIIII ~
-'11:-: $'''t'J,11,1 1111 $111,"'-'" $4117,111t'J , ,4",,%
~:;":::7 $22,5 ~:;'t; 1)1) $4,7444~:;' $27, 341} 4~:;' 2 3 2~'"
~ ~ ~ '1:,'_'''''''7'' l..ll..li
21}25 $57,1)3t;')I) $~:;',2 ~:;'5 1~:;' $t;td31.1~:;' 5 t;3~'"
t;':< ~:;'2 $I}I)I) $4t;, 1)54 ~:;'7 $4t;, 1)54 ~:;'7 3. ~:;'1 ~'"
152t; $t;'),I)I)I}I)I) $I}I)I) $t;'),I)I)I}I)I) 5. I)~:;'~'"
22" $111111 $1:,,1I2t'J $1:,,1I2t'J 111,%
24", $111111 $1,t'J,7 1:-: $1,t'J,7 1 1114%
111}lt; $I}I)I) $44, ~:;'1 ~:;. t; 1 $44, ~:;'1 ~:;. t; 1 3. :<1 ~'"
14 $111111 $'.4,474 $'.4,474 112"%
.....1..22. ~11 " <14 ~IJ IJIJ ~11 ~7'-< 1.1 I}~:;'::<%
21)t;11 $71,57::< 14 $~'i7, 57 t; 7 t; $1 t;~:;', 154 ~:;'I) 14 3 5~'"
11'
It;2
11"
11)~:;'
..:::l
","t'J
11)t;
~
1 ~:;'1
3::<2
31)1)
11",
7 ~:;'7
39
Total Overlapping
Appraised 2006 Land Secured
Vahle" Bonds Debt'" TotalLien
$211\'1111,'11111 $:-:,11",4,"''':-: ,,, $:-:,11"4,"''':-:
$24,- -"1,'11111 $74",,-' $4t'Jt'J,4t4 $1,212,,22
$1:::,541),1)1)1) $lliJ,t;tA $t;t;':<,737 $7 7~:;',41)1
$4",,,,11111111 $1,411:-:,4""1 $4"1,2,2 $1,-:"",t'J;-;2
$47,751),1)1)1) $1,755,1)3t; $44~:;', ~:;'52 $2,2 1)4, ~:;.::<,-<
~4t'Jnllllllll $211"t'J",",:-; $<:-:<"1)4 $24:-:114t'J2
$1:-:<,,711,111111 $t'J,1lt'J, ,t'J", $2,4t'J11,2:-:" $:-:, ,7t'J,-'"
$1 ~:;',~:;'11), 1)1)1) $4liJ, <t;7 $437,5t;':< $::q::<,43t;
'1:17"""""", ~ ~ ~
$37,:<t;'),I)I)I) $~:;'~:;'t;,:<1 1 $7 <>:<,44::< $1,7::<5,2t;1
$t;3,351),I)I)I) $t;~:;'2 ,11)5 $1,57t;, <~:;'7 $2 ,2 t;~:;' ,1)1)2
$2~:;', 71)1), 1)1)1) $~:;'1)1 ,t;t;':< $') $~:;'1)1 ,t;t;,:,
$",11111111 $22,""t'J ,,, $22,""t'J
$2,111111,111111 $24,t'J11, ,,, $24,w,
$2t;,I)I)I),I)I)I) $t;75,1)43 $') $t;75,1)43
N/A $",J,t'J17 ,,, $",J,t'J17
HIA ~1r; ':;":)4 ~IJ ~1r; ':;":;'4
$1 2 1, ~:;.:)) ,1)1)1) $2,542,I)2t; $1,57t;, <~:;'7 $4,11 ::<,~:;'Z3
Value-to-
Lien
Ratio'
2",4",1
211",21
23. 7~:;' .1
241:-:1
21t;t;1
1:-:t'J",1
23.47.1
1"1t'J1
Z7 ~:;'2 1
32. ~:;'4. 1
411441
-'12"1
__52.1
N/A
---1iL6.
Totals
Z,I12"
,4:-:ZII
$1,11c,11,c,Z",14
$117,-',77'-'
$1,17:-:,4:-:Z"Z
111111111%
$">4:-:,2211,111111
$17,7111,111111
$4, ,c"c,
$22:"\c,,c,
Z4"1
m
As provided by the Appraiser.
Ba~ed on building permit~ i~~ued, A~~e~~or'~ record~, and development ~tatu~ a~ of April 1 , 2006.
E~1imate only. See Table 5 Direct and Overlapping Debt Report. Exclude~ General Obligation BondIndebtedne~~. Additional bonded debt may exi~t but i~ not ~own becau~e a tax wa~ not levied for the referencedfi~cal year.
The Ashville project includes 43 units owned by homeowners as record owner with an estimated Fiscal Year 2006-07 Developed Assigned Special Tax of $_ representing approximately _ ~';, of Special Tax Allocation.
77 building permits have been issued for the SavalUla project however pursuant to the Rate and Method of Apportiomnent and Assessor's records as of April 1, 2006, this project is classified as Undeveloped.
The Auburn Lane project include~ 109 unit~ owned by homeowner~ a~ record owner with an e~timated Fi~cal Year 2006-07 Developed A~,agned Special Tax of $ repre~enting approximately ~'o of Special Tax Allocation.
The Sausalito prQi ect includes 109 units owned by homeowners as record owner with an estimated Fiscal Year 2006-07 Developed Assigned Special Tax of $_ representing approximately _~';, of Special Tax Allocation.
The Walden project includes 92 units owned by homeowners as record owner with an estimated Fiscal Year 2006-07 Developed Assigned Special Tax of $_ representing approximately _ ~';, of Special Tax Allocation.
18 building permit~ have been i~~lIed for the MW Hou,ang Partner~ II L.P /LelUlar Home~ prQiect however pur~lIant to the Rate and Method of Apportionment and A~~e~~or'~ record~ a~ of April 1, 2006, thi~ project i~ cla~~ified a~
Undeveloped Property.
Pur~uant to the Rate andMethod of Apportiomnent, the~e propertie~ are cla~~ified a~ Undeveloped Property. However, they are generally e:\..pected to be exempted from the ~pecial tax levy in the future a~~uming the property become~
Property Owner A~~ociation Property. For putpo~e~ of the Apprai~al, approximately 1.59 acre~ are included a~ part of the Conunercial Acreage ,ate and are expected to be ~lIQiect to the Special Tax. (1.59 plu~ 110.16 equal~ the 111.75
acres for the conunercial acreage site referenced in the Appraisal).
1111 The 1.89 acre developed commercial site is a child care facility. The parcel was not included among the parcels appraised by the Appraiser.
,'c)
'"
'"
'"
,l)
,'0)
1"1
,w
40
Overlapping Community Facilities and Assessment Districts
Ccmmunity Facilities District No. 03-6 (Harveston n!. Community Facilities District No. 03-6
(Harveston II), which includes Phases 2, 2B and 3 of the District, levies a special tax which is pledged to
Community Facilities District No. 03-6 for bonds it issued in 2004. Such bonds were issued in the aggregate
principal amountof$4,845,000. The allocation of such bonds to the property within the District is approximately
$4,825,636. There are seven parcels included within Community Facilities District No. 03-6 which are not
within the boundaries of the District.
Additional Debt Payable from T{L\"es or Assessments. The District has no control over the amount of
additional debt payable from taxes or assessments levied on all or a portion of the property within a special
district which may be incurred in the future by other govemmental agencies, including, but not limited to, the
County, the City or any other governmental agency having jurisdiction over all or a portion ofthepropertywithin
the District. Furthermore, nothing prevents the owners of property within the District from consenting to the
issuance of additional debt by other governmental agencies which would be secured by taxes or assessments on
a parity with the Special Taxes. To the extent such indebtedness is payable from assessments, other special taxes
levied pursuant to the Act or taxes, such assessments, special taxes and taxes will be secured by liens on the
property within a district on a parity with a lien of the Special Taxes.
Accordingly, the debt on the property within the District could increase, without any corresponding
increase in the value of the property therein, and thereby severely reduce the ratio that exists at the time the 2006
Bonds are issued between the value of the property and the debt secured by the Special Taxes and other taxes
and assessments which may be levied on such property. The incurring of such additional indebtedness could also
affectthe ability and willingness ofthe property owners within the District to pay the Special Taxes when due.
Moreover, in the event of a delinquency in the payment of Special Taxes, no assurance can be given that
the proceeds of any foreclosure sale of the property with delinquent Special Taxes would be sufficient to pay the
delinquent Special Taxes. See "BONDOWNERS' RISKS."
Other Overlapping Direct Assessments
Aletropolitan FVater District Standby. Property within the District is subject to a Metropolitan Water
District Standby ("MWD Standby") assessment. The MWD Standby assessment is fixed unless there is a vote
to increase the assessment. This pay-as-you-go assessment is used for water conservation programs, emergency
programs, water treatment and capital improvements such as transporting water from Colorado and Northern
California to Southern California. The assessment levied for Fiscal Year 2006-07 was $[6.94] per equivalent
dwelling unit.
Estimated Assessed Value-to-Lien Ratios
The assessed values, direct and overlapping debt and total tax burden on individual parcels varies among
parcels within the District. The value of individual parcels is significant because in the event of a delinquency
in the payment of Special Taxes, the District may foreclose only against delinquent parcels. Based on the Fiscal
Year 2005-06 assessed value of approximately $30 1,942,35 8, the parcels in the District have an assessed value-
to-lien ratio of approximately 13.4: l' taking into account outstanding direct and overlapping bonded debt.
Appraised Property Value
An appraisal prepared by an MAl appraiser of the land and existing improvements for the development
within the District, dated February 3, 2006, as supplemented by a Supplemental Report dated May 11, 2006
(collectively, the "Appraisal"), has been prepared by Stephen G. White, MAl of Fullerton, California (the
"Appraiser") in connection with issuance of the 2006 Bonds. The purpose of the Appraisal was to estimate the
aggregate minimum market value of the "as is" condition of all of the taxable property, as segregated by property
type, separated tracts of homes and! or ownership. It is noted that valuation of the completed-sold homes for the
built -out tracts is based on the most recent sale price for each home (original builder sale or more recent sale),
or the assessed value where a sale price was not available. The Appraisal also reflects the proposed public bond
financing, with the tax rates to the homeowners of up to approximately 1.9%, including special taxes.
*Preliminary, subject to change.
41
The Appraisal is based on certain assumptions and limiting conditions. Subjectto these assumptions and
limiting conditions, the Appraiser estimated that the fee simple minimum market value of the Taxable Property
within the District (subject to the lien of the Special Taxes) as of January 15, 2006, was as follows:
Built Out Tracts - Phase 1
Owner Occupied
Owner Occupied
Owner Occupied
Owner Occupied
Owner Occupied
Subtotal
Tracts lmder Construction -Phases 2 and 2B
Greystone Hornes(ll
William Lyon Homes, Inc.
Lennar Homes
Greystone Homes
Substantially Owner Occupied (1
completed home owned by PLC
Harveston LLC/Christopher Homes)
Acacia Credit FlUld 9-A LLC - Meritage
Homes of California, Inc.
Acacia Credit FlUld 9-A LLC Meritage
Homes of California, IncYl
Subtotal
Other Properties (11 - Phase 1 and 3
MW Housing Partners III L.P
The Morgan Group
Ternecula Retirement Residence
Harveston LLC
Winchester Hills L LLC
Subtotal:
Total
No. of
No of Completed-Sold
Horne Homes as of Minimum
Tract Name Sites/Units May 8,2006 Market Value
Sherbourne 70 70 $ 32,330,000
Wells1ey 70 70 34,040,000
Easton Place 88 88 36,170,000
Lake Front Cottages 139 139 58,430,000
Chatham ..n. ..n. 44.040.000
445 445 $205,010,000
A<;hville 113
Savannah 162
Auburn Lane 119
Sausalito 109
Walden 93
Charleston 106
Aberdeen ~
787
43
o
109
109
92
$24,880,000
18,540,000
45,930,000
47,750,000
46,270,000
o
19,910,000
--1
179,0000
356
$221,230,000
No.ofDU
or Acres
Residential Land
382 DU
300 DU
2.29 ac.
2.45 ac.
111 75 ac.
$ 63,350,000
29,700,000
930,000
2,000,000
26,000,000
$121,980,000
Cape May Apartments
Retirement Residence Site
Commercial Site/Welcome Center 12)
Phase 3 - Commercial Acreage Site
(1) 53 lots are subject to an option agreement between Greystone Homes and LEN-Inland, LLC.
(2) The 85 home sites excludes 7 home sites which are not within the bonndaries of the District.
$548,220,000
Thefee simple minimum market value includes thevalue of completed-sold homes, completed-unsold homes,
homes under construction, vacant residential lots and acreage of the vacant retirement residence site, the
commercial site with the welcome center and the vacant commercial acreage. The minimum market values
reported in the Appraisal result in an estimated overall value-to-lien ratio of approximately 24.33: 1', calculated
with respect to the 2006Bonds and including 4, S25, 636 of the $4,S45, 000 special tCL\" bonds issued by C ommun ity
Facilities District No. 03-6 (Harveston]]). The value-to-lien ratios of individual parcels will differ from the
foregoing aggregate value-to-lien ratio. See" Estimated V alue-to-Lien Ratios and Estimated Special Tax
*Preliminary, subject to change.
42
Allocation by Property Ownership" and Table 6 "Allocation Based on Developed and Undeveloped Property
- Special Tax Allocation by Appraiser's Categories." See "B( lND( lWNERS' RISKS - Appraised Values"and
"B( lND( lWNERS' RISKS - Burden of Parity Liens, Taxes and (lther Special Assessments on the Taxable
Property" herein and APPENDLX C "Supplemental Report and Summary Appraisal Report" appended hereto
for further information on the Appraisal and for limiting conditions relating to the Appraisal.
For the built-out tracts, the minimum market values are based on the most recent sales prices for each home
or the current assessed value for the homes where the sale price information was not available. Most of the sale
prices are from the original builder sales which took place from late 2003 through late 2005, but some of the
prices reflect more recent resales of the homes where those have occurred.
For the tracts under construction and the other properties, a sales comparison approach is used to estimate
the value of the completed-sold homes (including models), considering the prior sale prices together with the
current home pricing for the tract. For the homes under construction, a simplified cost approach is used, in which
the value is based on a conservative estimate of costs expended plus the estimated value of the vacant lot as if
in finished condition. The sales comparison approach is used to estimate the value of the vacant lots, as if in a
finished lot condition, based upon recent sales of residential land or bulk lots from the general area in comparison
to the subjectproperty. Lastly, a deduction is made for the estimated remaining costs to the builder to get all of
the lots from the as is condition to finished lots.
TheAuthority and the District, make no representation as to the accuracy or completeness of the Appraisal.
See Appendix C hereto for more information relating to the Appraisal.
BONDOWNERS' RISKS
In addition to the other information contained in th is Official Statement, the follow ingrisk fllctors should
be carefilily considered in evaluating the investment quality of the 2006 Bonds. The Authority cautions
prospective investors that this discussion does notpurport to be comprehensive or definitive. the riskfixtors are
listed in no particular order of importance. and does not purport to be a complete statement of all factors which
may be considered as risks in evaluating the credit quality of the 2006 Bonds. The occurrence of one or more
of the events discussed herein could adverselyafJect the ability or willingness of property owners in the District
to pay their Special Taxes when due. Any suchfililure to pay Special Taxes could result in the inability of the
Authority to make filii and punctual pavments of debt service on the 2006 Bonds. In addition, the occurrence
of one or more of the events discussed 7wrein could adversely eifJect the value of the property in the District.
Risks of Real Estate Secured Investments Generally
The Bondowners will be subject to the risks generally incident to an investment secured by real estate,
including, without limitation, (i) adverse changes in local market conditions, such as changes in the market value
of real property in the vicinity of the District, the supply of or demand for competitive properties in such area,
and the market value of residential property and/ or sites in the event of sale or foreclosure; (ii) changes in real
estate tax rate and other operating expenses, govemmental rules (including, without limitation, zoning laws and
laws relating to endangered species and hazardous materials) and fiscal policies; and (iii) natural disasters
(including, without limitation, earthquakes, wildfires and floods), which may result in uninsured losses.
Concentration of Ownership
For Fiscal Year 2006-07 based on the property ownership as of the May 8, 2006 date of value of the
Appraisal, Harveston, LLC, LEN-Inland, LLC, the Merchant Builders, MW Housing Partners, The Morgan
Group, Temecula Retirement Residence, and Winchester Hills I, LLC are responsible for approximately
[ percent ( 00)] the Special Taxes. If any such entity fails in its obligations under the applicable
agreements or if any such entity is unwilling or unable to pay the Special Tax when due, a potential shortfall in
the Bond Fund could occur, which would result in the depletion of the Senior Subaccount within the Reserve
Fund or the Subordinate Subaccount within the Reserve Fund or a draw on the reserve surety prior to
reimbursement from the resale of foreclosed property or payment of the delinquent Special Taxes and,
consequently, a delay or failure in payments of the principal of or interest on the 2006 Bonds.
No property owner is obligated in any manner to continue to own and/or develop any of the land it
presently owns within the District. The Special Taxes are not a personal obligation of Harveston, LLC, LEN-
43
Inland, LLC, any Merchant Builder, The Morgan Group and MW Housing Partners or of any owner of the
parcels, and the District can offer no assurance that any current owner or any future owner will be financially
able to pay such installments or that it will choose to pay even if financially able to do so.
Adjustable Rate and Unconventional Mortgage Structures
Since the end of 2002, many persons have financed the purchase of new homes using loans with little
or no down payment and with adjustable interest rates that start low and are subjectto being reset at higher rates
on a specified date or upon the occurrence of specified conditions. Many of these loans allow the borrower to
pay interest only for an initial period, in some cases up to 10 years. Currently, in Southern California, a
substantial portion of outstanding home loans are adjustable rate loans at historically low interest rates. In the
opinion of some economists, the significant increase in home prices in this time period has been driven, in part,
by the ability of home purchasers to access adjustable rate and non-conventional loans. These economists predict
that as interest rates on new loans increase and as the interest rates on existing adjustable rate loans are reset (and
payments are increased), there will be a decrease in home sales due to the inability of purchasers to qualify for
loans with higher interest rates. They further predict that such a decrease in home sales will, eventually, result
in a decrease in home prices. Some economists are concerned that such a reduction in home prices will result
inrecenthomebuyers having loan balances that exceed the value of their homes, given their low down payments
and small amount of equity in their homes.
Homeowners in the District who purchase their homes with adjustable rate and non-conventional loans
with no or low down payments may experience difficulty in making their loan payments due to automatic
mortgage rate increases and rising interest rates and should homeowners in the District have loan balances that
exceed the value oftheir homes, those homeowners may choose not to make their loan payments even if they are
able to. This could result in an increase in the Special Tax delinquency rate in the District and draws on a
Reserve Fund or reserve surety. If there were significant delinquencies in Special Tax collections in the District
and the Senior Subaccount or'Subordinate Subaccount within the Reserve Fund was fully depleted, there could
be a default in the payment of principal of and interest on the applicable 2006 Bonds.
Some economists have also predicted that, as mortgage loan defaults increase, bankruptcy filing by such
homeowners are also likely to increase. Bankruptcy filings by homeowners with delinquent Special Taxes would
delay the commencement and completion of foreclosure proceedings to collect delinquent Special Taxes. See
"SPECIAL RISK FACT< lRS - Bankruptcy and Foreclosure Delay" below.
Failure to Develop Properties
Development of property within the District may be subject to economic considerations and unexpected
delays, disruptions and changes which may affect the willingness and ability of Harveston, LLC, LEN-Inland,
LLC, the Merchant Builders, MW Housing Partuers III L.P., The Morgan Group, the Temecula Retirement
Residence, Winchester Hills I, LLC or any property owner to pay the Special Taxes when due.
Land development is also subject to comprehensive federal, State and local regnlations. Approval is
required from various agencies in connection with the layout and design of developments, the nature and extent
of improvements, construction activity, land use, zoning, school and health requirements, as well as numerous
other matters. Grading is currently underway on the northerly or first phase of development. See
" Govemment Approvals" below. It is possible that the approvals necessary to complete development of the
property within the District will not be obtained on a timely basis. Failure to obtain any such approval could
adversely affect land development operations within the District. In addition, there is a risk that future
governmental restrictions on land development within the District will be enacted, either directly by a
governmental entity with jurisdiction or by the voters through the exercise of the initiative power.
Thefailure to complete the development or the required infrastructure in the District or substantial delays
in the completion of the development or the required infrastructure for the development due to litigation, the
inability to obtain required funding, failure to obtain necessary governmental approval or other causes may
reduce the value of the property within the District and increase the length of time during which Special Taxes
will be payable from Undeveloped Property, and may affect the willingness and ability of the owners of property
within the District to pay the Special Taxes when due. See "SECURITY FOR THE 2006 BONDS."
44
Bondowners should assume that any event that significantly impacts the ability to develop land in the
District would cause the property values within the District to decrease and could affect the willingness and
ability of the owners of land within the District to pay the Special Taxes when due.
Special Taxes Are Not Personal Obligations
The owners of land within the District are not personally liable for the payment of the Special Taxes.
Rather, the Special Tax is an obligation only of the property within the District. If the value of the property
within the District is not sufficient to fully secure the Special Tax, then the District has no recourse against the
owners under the laws by which the Special Tax has been levied and the 2006 Bonds have been issued.
The 2006 Bonds Are Limited Obligations of the District
The District has no obligation to pay principal of and interest on the 2006 Bonds in the event Special
Tax collections are delinquent, other than from amounts, if any, on deposit in certain funds and accounts held
under the Fiscal Agent Agreement, or funds derived from the tax sale or foreclosure and sale of parcels on which
levies of the Special Tax are delinquent, nor is the District obligated to advance funds to pay such debt service
on the 2006 Bonds.
Appraised Values
The Appraisal summarized in Appendix C hereto estimates the fee simple interestminimummarketvalue
of the Taxable Property within the District. This value is merely the present opinion of the Appraiser, and is
qualified by the Appraiser as stated in the Appraisal. The Authority has not sought the present opinion of any
other appraiser of the value ofthe TaxableProperty. A different present opinion of such value miglit be rendered
by a different appraiser.
The opinion of value relates to sale by a willing sellerto a willing buyer, each having similar information
and neither being forced by other circumstances to sell nor to buy. Consequently, the opinion is of limited use
in predicting the selling price at a foreclosure sale, because the sale is forced and the buyer may not have the
benefit of full information.
In addition, the opinion is a present opinion. It is based upon present facts and circumstances. Differing
facts and circumstances may lead to differing opinions of value. The appraised minimum market value is not
evidence of future value because future facts and circumstances may differ significantly from the present.
No assurance can be given that if any of the Taxable Property in the District should become delinquent
in the payment of Special Taxes, and be foreclosed upon, that such property could be sold for the amount of
estimated market value thereof contained in the Appraisal.
Land Development
A major risk to the Bondowners is that development by the property owners in the District may be
subject to unexpected delays, disruptions and changes which may affect the willingness and ability of the
property owners to pay Special Taxes when due. For example, proposed development within a portion of the
District could be adversely affected by delays in or the inability to obtain final environmental clearances required
in connection with particular parcels of property, delays in or the inability to complete off-site public
improvements within the times required by the First, Second and Third Operating Memoranda, unfavorable
economic conditions, competing development projects, an inability of the current owners or future owners of the
parcels to obtain financing, fluctuations in the real estate market or interest rates, unexpected increases in
development costs, changes in federal, State or local governmental policies relating to the ownership of real
estate, faster than expected depletion of existing water allocations, the appearance of previously unknown
environmental impacts necessitating preparation of a supplemental environmental impact report, and by other
similar factors. There can be no assurance that land development operations within the District will not be
adversely affected by the factors described above.
In addition, partially developed land is less valuable than developed land and provides less security for
the 2006 Bonds (and therefore to the Bondowners) should it be necessary for the District to foreclose on partially
developed property due to the nonpayment of Special Taxes. Moreover, failure to complete future development
45
ona timely basis could adversely affect the land values of those parcels which have been completed. Lower land
values result in less security for the payment of principal of and interest on the 2006 Bonds and lower proceeds
from any foreclosure sale necessitated by delinquencies in the payment of the Special Taxes.
Furthermore, an inability to develop the land within the District as planned will reduce the expected
diversity of ownership of land within the District, making the payment of debt service on the 2006 Bonds more
dependent upon timely payment of the Special Taxes levied on the undeveloped property. Because of the
concentration of undeveloped property ownership, the timely payment of the 2006 Bonds depends upon the
willingness and ability of the current owners of undeveloped land and any home builders to whom finished lots
are sold to pay the Special Taxes levied on the undeveloped land when due. Furthermore, continued
concentration of ownership increases the potential negative impact of a bankruptcy or other financial difficulty
experienced by the existing landowners. See" Concentration of Ownership" above.
Burden of Parity Liens, Taxes and Other Special Assessments on the Taxable Property
While the Special Taxes are secured by the Taxable Property, the security only extends to the value of
such Taxable Property that is not subject to priority and parity liens and similar claims.
The table in the section entitled "THE COMMUNITY FACILITIES DISTRICT Direct and
Overlapping Debt" presents the presently outstanding amount of governmental obligations (with stated
exclusions), thetax or assessment which is or may become an obligation of one or more of the parcels of Taxable
Property, and furthermore states the additional amount of general obligation bonds the tax for which, if and when
issued, may become an obligation of one or more of the parcels of Taxable Property. The table does not
sflecifically identify which of the govemmental obligations are secured by liens on one or more of the parcels
of Taxable Property.
In addition, other govemmental obligations may be authorized and undertaken or issued in the future,
the tax, assessment or charge for which may become an obligation of one or more of the parcels of Taxable
Property and may be secured by a lien on a parity with the lien of the Special Tax securing the 2006 Bonds.
In general, the Special Tax and all other taxes, assessments and charges collected on the County tax roll
are on a parity, that is, are of equal priority. Questions of priority become significant when collection of one or
more of the taxes, assessments or charges is sought by some other procedure, such as foreclosure and sale. In
the event of proceedings to foreclose for delinquency of Special Taxes securing the 2006 Bonds, the Special Tax
will be subordinate only to existing prior governmental liens, if any. Otherwise, in the event of such foreclosure
proceedings, the Special Taxes will generally be on a parity with the other taxes, assessments and charges, and
will share the proceeds of such foreclosure proceedings on a pro rata basis. Although the Special Taxes will
generally have priority over non-governmental liens on a parcel of Taxable Property, regardless of whether the
non-govemmentalliens were in existence at the time of the levy of the Special Tax or not, this result may not
apply in the case of bankruptcy.
While govemmental taxes, assessments and charges are a common claim against the value of a parcel
ofTaxableProperty, other less common claims may be relevant. (lne of the most serious in terms ofthe potential
reduction in the value that maybe realized topay the Special Tax is a claim with regard to a hazardous substance.
See" Hazardous Substances" below.
Disclosure to Future Purchasers
The District recorded a Notice of the Special Tax lien in the Office of the Riverside County Recorder
on May 15,2002, as Document No. 2002-254462. While title companies normally refer to such notices in title
reports, there can be no gnarantee that such reference will be made or, if made, that a prospective purchaser or
lender will consider such Special Tax obligation in the purchase of a parcel of land or a home in the District or
the lending of money thereon. The Act requires the subdivider (or its agent or representative) of a subdivision
to notify a prospective purchaser or long-term lessor of any lot, parcel, or unit subject to a Mello-Roos special
tax of the existence and maximum amount of such special tax using a statutorily prescribed form. California
Civil Code Section 1102.6b requires that in the case of transfers other than those covered by the above
requirement, the seller must at least make a good faith effort to notify the prospective purchaser of the special
tax lien in a format prescribed by statute. Failure by an owner of the property to comply with the above
46
requirements, or failure by a purchaser or lessor to consider or understand the nature and existence of the Special
Tax, could adversely affect the willingness and ability of the purchaser or lessor to pay the Special Tax when due.
Government Approvals
The current landowners or their predecessors have secured most discretionary approvals, permits and
government entitlements necessary to develop the land within the District. Nevertheless, development within
the District is contingent upon the construction of a number of major public improvements as well as the
necessary local in-tract improvements. The installation of the necessary improvements and infrastructure is
subject to the receipt of construction or building permits from the City and other public agencies. The failure
to obtain any such approval could adversely affect construction within the District. A slow down or stoppage
of the construction process could adversely affect land values. No assurance can be given that permits will be
obtained in a timely fashion, if at all. The failure to do so may result in the prevention, or significant delays in
the development of the property within the District or portions thereof. See" - Failure to Develop Properties"
herein.
Local, State and Federal Land Use Regulations
There can be no assurance that land development operations within the District will not be adversely
affected by future govemment policies, including, but not limited to, governmental policies which directly or
indirectly restrict or control development. During the past several years, citizens of a number of local
communities in California have placed measures on the ballot designed to control the rate of future development.
Duringthe past several years, state and federalregnlatory agencies have significantly expanded their involvement
in local land use matters through increased regnlatory enforcement of various environmental laws, including the
Endangered Species Act, the Clean Water Act and the Clean Air Act, among others. Such regnlations can
substantially impair the rate and amount of development without requiring just compensation unless the effect
oftheregnlation is to deny all economic use of the affected property. Bondowners should assume that any event
that significantly impacts the ability to construct homes on land in the District could cause the land values within
the District to decrease substantially and could affect the willingness and ability of the owners ofland to pay the
Special Taxes when due or to proceed with development of land in the District. See" - Failure to Develop
Properties" herein.
Endangered and Threatened Species
It is illegal to harm or disturb any plants or animals in their habitat that have been listed as endangered
species by the United States Fish & Wildlife Service under the Federal Endangered Species Act or by the
California Department of Fish and Game ("CDFG") under the California Endangered Species Act without a
permit. Thus, the presence of an endangered plant or animal could delay development of undeveloped property
in the District or reduce the value of undeveloped property. Failure to develop the undeveloped property in the
District as planned, or substantial delays in the completion of the planned development of the property may
increase the amount of Special Taxes to be paid by the owners of undeveloped property and affect the willingness
and ability of the owners of property within the District to pay the Special Taxes when due. See "THE
C( lMMUNITY FACILITIES DISTRICT - Environmental Conditions."
Hazardous Substances
While governmental taxes, assessments, and charges are a common claim against the value of a taxed
parcel, other less common claims may be relevant. (lne of the most serious in terms of the potential reduction
in the value that may be realized to pay the Special Tax is a claim with regard to hazardous substances. In
general, the owners and operators of parcels within the District may be required by law to remedy conditions of
the parcels related to the releases or threatened releases of hazardous substances. The federal Comprehensive
Environmental Response, Compensation, and Liability Act of 1980, sometimes referred to as "CERCLA" or the
"Superfund Act," is the most well-known and widely applicable of these laws, but California laws with regard
to hazardous substances are also stringent and similar. Under many of these laws, the owner (or operator) is
obligated to remedy a hazardous substances condition of a property whether or not the owner (or operator) has
anything to dowith creating or handling the hazardous substance. The effect, therefore, should any parcel within
the District be affected by a hazardous substance, would be to reduce the marketability and value of the parcel
by the costs of remedying the condition, because the owner (or operator) is obligated to remedy the condition.
Further, such liabilities may arise not simply from the existence of a hazardous substance but from the method
47
of handling or disposing of it. All of these possibilities could significantly affect the financial and legal ability
of a property owner to develop the affected parcel or other parcels, as well as the value of the property that is
realizable upon a delinquency and foreclosure.
The appraised value of the property within the District does not take into account the possible reduction
in marketability and value of any of the parcels of Taxable Property by reason of the possible liability of the
owner (or operator) for the remedy of a hazardous substance condition of the parcel. The District has not
independently verified and is not aware that the owner (or operator) of any of the parcels of Taxable Property
has such a current liability with respect to any such parcels of Taxable Property, except as expressly noted.
However, it is possible that such liabilities do currently exist and that the District is not aware of them.
Further, it is possible that liabilities may arise in the future with respect to any of the parcels of Taxable
Property resulting from the existence, currently, on the parcel of a substance presently classified as hazardous
but which has not been released or the release of which is not presently threatened, or may arise in the future
resulting from the existence, currently, on the parcel of a substance not presently classified as hazardous but
which may in the future be so classified. Further, such liabilities may arise not simply from the existence of a
hazardous substance but from the method of handling or disposing of it. All of these possibilities could
significantly affect the value of a parcel of Taxable Property that is realizable upon a delinquency. See "THE
COMMUNITY FACILITIES DISTRICT Environmental Conditions" herein for a description of the prior use
of the property.
Levy and Collection of the Special Tax; Insufficiency of the Special Tax
The principal source of payment of principal of and interest on the 2006 Bonds is the proceeds of the
annual levy and collection of the Special Tax against property within the District. The annual levy of the Special
Tax is subject to the maximum tax rates authorized. The levy cannot be made at a higher rate even if the failure
to do so means that the estimated proceeds of the levy and' collection of the Special Tax, together with other
available funds, will not be sufficient to pay debt service on the 2006 Bonds. Other funds which might be
available include funds derived from the payment of penalties on delinquent Special Taxes and funds derived
from the tax sale or foreclosure and sale of parcels on which levies of the Special Tax are delinquent.
The levy of the Special Tax will rarely, if ever, result in a uniform relationship between the value of
particular taxed parcels and the amount of the levy of the Special Tax against such parcels. Thus, there will
rarely, if ever, be a uniform relationship between the value of such parcels and the proportionate share of debt
service on the 2006 Bonds, and certainly not a direct relationship.
The Special Tax levied in any particular tax year on a parcel of Taxable Property is based upon the
revenue needs and application of the Rate and Method. Application of the Rate and Method will, in turn, be
dependent upon certain development factors with respect to each parcel of Taxable Property bycomparison with
similar development factors with respect to the other parcels of Taxable Property within the District. Thus, in
addition to annual variations of the revenue needs from the Special Tax, the following are some of the factors
which might cause the levy of the Special Tax on any particular parcel of Taxable Property to vary from the
Special Tax that might otherwise be expected:
( 1) Reduction in the number of parcels of Taxable Property, for such reasons as acquisition
of parcels of Taxable Property by a govemment and failure of the government to pay the Special Tax
based upon a claim of exemption or, in the case of the federal government or an agency thereof,
immunity from taxation, thereby resulting in an increased tax burden on the remaining parcels of
Taxable Property.
(2) Failure of the owners of parcels of Taxable Property to pay the Special Tax and delays
in the collection of or inability to collect the Special Tax by tax sale or foreclosure sale of the delinquent
parcels, thereby resulting in an increased tax burden on the remaining parcels.
Except as set forth above under "SECURITY F< lR THE 2006 B( lNDS - Special Taxes" and" - Rate
and Method" herein, the Fiscal Agent Agreement provides that the Special Tax is to be collected in the same
manner as ordinary ad valorem property taxes are collected and, except as provided in the special covenant for
foreclosure described in "SECURITY F< lR THE 2006 B( lNDS - Proceeds of Foreclosure Sales" and in the Act,
is subject to the same penalties and the same procedure, sale and lien priority in case of delinquency as is
48
provided for ad valorem property taxes. Pursuant to these procedures, if taxes are unpaid, the property is then
is subject to sale by the District.
In addition, the Rate and Method limits the increase of Special Taxes levied on parcels of Developed
Property to cure delinquencies of other property owners in the District. See "SECURITY FOR THE 2006
B( lNDS - Rate and Method" herein.
In the event that sales or foreclosures of property are necessary, there could be a delay in payments to
owners of the 2006 Bonds pending such sales or the prosecution of foreclosure proceedings and receipt by the
Authority of the proceeds of sale if the Senior Subaccount or the Subordinate Subaccount within the Reserve
Fund is depleted. The Series B Bonds are subordinate to the Series ABonds, and in the event of delinquencies,
the Series A Bonds would be paid and the Senior SubAccount of the Reserve Fund replenished before Series B
Bonds are paid or the Subordinate Subaccount of the ReserveFund is replenished. See "SECURITY F< lR THE
2006 BONDS - Proceeds of Foreclosure Sales."
Exem pt Properties
Certain properties are exempt from the Special Tax in accordance with the Rate and Method (see
"SECURITY FOR THE 2006 BONDS Rate and Method" herein). In addition, the Act provides that properties
or entities of the state, federal or local govemment are exempt from the Special Tax; provided, however, that
property within the District acquired by a public entity through a negotiated transaction or by gift or devise,
which is not otherwise exempt from the Special Tax, will continue to be subject to the Special Tax. It is possible
that property acquired by a public entity following a tax sale or foreclosure based upon failure to pay taxes could
become exempt from the Special Tax. In addition, although the Act provides that if property subject to the
Special Tax is acquired by a public entity through eminent domain proceedings, the obligation to pay the Special
Tax with respect to that property is to be treated as if it were a special assessment, the constitutionality and
operation of these provisIOns of ihe Act have not been tested, mealllng that such property could become exempt
from the Special Tax. In the event that additional property is dedicated to the City or other public entities, this
additional property might become exempt from the Special Tax.
The Act further provides that no other properties or entities are exempt from the Special Tax unless the
properties or entities are expressly exempted in a resolution of consideration to levy a new special tax or to alter
the rate or method of apportionment of an existing special tax.
Depletion of Subaccounts within the Reserve Fund
The Sub accounts within the Reserve Fund are to be maintained at an amount equal to the Senior
Subaccount Reserve Requirement and the Subordinate Subaccount Reserve Requirement, respectively (see
"SECURITY FOR THE 2006 BONDS Special Tax Fund Disbursements" herein). Funds in the Senior
Subaccount within theReserve Fund or the Reserve Surety credited to the Senior Subaccount in the Reserve Fund
may be used to pay principal of and interest on the Bonds excluding the Series B Bonds and funds in the
Subordinate Subaccount within the Reserve Fund may be used to pay principal of and interest on the Series B
Bonds in the event the proceeds of the levy and collection of the Special Tax against property within the District
is insufficient. If funds in the Reserve Fund and the Reserve Surety for the Series A Bonds are depleted, the
funds can be replenished from the proceeds of the levy and collection of the Special Tax that are in excess of the
amount required to pay all amounts to be paid to the Bondowners pursuant to the Fiscal Agent Agreement.
However, no replenishment from the proceeds of a Special Tax levy can occur as long as the proceeds that are
collected from the levy ofthe Special Tax against property within the District at the maximum tax rates, together
with other available funds, remains insufficient to pay all such amounts. Thus it is possible that a Subaccount
within the Reserve Fund, including the Reserve Surety with respect thereto) will be depleted and not be
replenished by the levy of the Special Tax.
Potential Delay and Limitations in Foreclosure Proceedings
The payment of property owners' taxes and the ability ofthe District to foreclose the lien of a delinquent
unpaid Special Tax pursuant to its covenant to pursue judicial foreclosure proceedings, may be limited by
bankruptcy, insolvency or other laws generally affecting creditors' rights or by the laws of the State relating to
judicial foreclosure. See "SECURITY FOR THE 2006 BONDS - Proceeds of Foreclosure Sales" and
"BONDOWNERS'RISKS Bankruptcy and Foreclosure Delay" herein. In addition, the prosecution of a
49
foreclosure could be delayed dueto many reasons, including crowded local court calendars or lengthy procedural
delays.
The ability of the District to collect interest and penalties specified by State law and to foreclose against
properties having delinquent Special Tax installments may be limited in certain respects with regard to properties
in which the Federal Deposit Insurance Corporation (the "FDIC") has or obtains an interest. The FDIC would
obtain such an interest by taking over a financial institution which has made a loan which is secured by property
within the District.
The FDIC has adopted a policy statement regarding the payment of state and local real property taxes
(the "Policy Statement"") which provides that the FDIC intends to pay valid real property taxes, interest and
penalties, in accordance with state law, on property which at the time of the tax levy is owned by a financial
institution in an FDIC receivership, unless abandonment of the FDIC interest is determined to be appropriate.
However, the Policy Statement is unclear as to whether the FDIC considers special taxes such as the Special
Taxes to be "real property taxes" which it intends to pay. Furthermore, the Policy Statement provides that, with
respect to parcels on which the FDIC holds amortgage lien, it will not permit its lien to be foreclosed by a taxing
authority without its specific consent, and that it will not payor recognize liens for any penalties, fines, or similar
claims imposed for the non-payment of taxes.
The Authority and the District are unable to predict what effect the application of the Policy Statement
would have in the event of a delinquency on a parcel within the District in which the FDIC has or obtains an
interest, although prohibiting the lien of the FDIC to be foreclosed at a judicial foreclosure sale would likely
reduce or eliminate the persons willing to purchase a parcel at a foreclosure sale.
In addition, potential investors should be aware that judicial foreclosure proceedings are not summary
remedies and can be subject to significant procedural and other delays caused by crowded court calendars and
other factors beyond control of the Authority or the District. Potential investors should assume that, under
current conditions, it is estimated that a judicial foreclosure of the lien of Special Taxes will take up to two or
three years from initiation to the lien foreclosure sale. At a Special Tax lien foreclosure sale, each parcel will
be sold for not less than the "minimum bid amount" which is equal to the sum of all delinquent Special Tax
installments, penalties and interest thereon, costs of collection (including reasonable attorneys' fees), post-
judgment interest and costs of sale. Each parcel is sold at foreclosure for the amounts secured by the Special Tax
lien on such parcel and multiple parcels may not be aggregated in a single "bulk" foreclosure sale. If any parcel
fails to obtain a "minimum bid," the Authority may, but is not obligated to, seek superior court approval to sell
such parcel at an amount less than the minimum bid. Such Superior Court approval requires the consent of the
owners of 75% of the aggregate principal amount of the Outstanding Bonds.
Bankruptcy and Foreclosure Delay
The payment of Special Taxes and the ability ofthe District to foreclose the lien of a delinquent Special
Taxes as discussed in the section herein entitled "SECURITY FOR THE 2006 BONDS" may be limited by
bankruptcy, insolvency, or other laws generally affecting creditors' rights or by the laws of the State relating to
judicial foreclosure. In addition, the prosecution of a judicial foreclosure may be delayed due to congested local
court calendars or procedural delays.
Thevarious legal opinions to be delivered concurrently with the delivery of the 2006 Bonds (including
Bond Counsel's approving legal opinion) will be qualified, as to the enforceability of the various legal
instruments, by moratorium, bankruptcy, reorganization, insolvency or other similar laws affecting the rights of
creditors generally.
Although bankruptcy proceedings would not cause the obligation to pay the Special Tax to become
extingnished, bankruptcy of a property owner or of a partner or other equity owner of a property owner, could
result in astay of enforcement of the lien for the Special Taxes, a delay in prosecuting Superior Court foreclosure
proceedings or adversely affect the ability or willingness of a property owner to pay the Special Taxes and could
result in the possibility of delinquent Special Taxes not being paid in full. In addition, the amount of any lien
on property securing the payment of delinquent Special Taxes could be reduced if the value of the property were
determined by the bankruptcy court to have become less than the amount of the lien, and the amount of the
delinquent Special Taxes in excess ofthe reduced lien could then be treated as an unsecured claim by the court.
Any such stay of the enforcement of the lien for the Special Tax, or any such delay or non-payment, would
50
increase the likelihood of a delay or default in payment of the principal of and interest on the 2006 Bonds and
the possibility of delinquent Special Taxes not being paid in full. Moreover, amounts received upon foreclosure
sales may not be sufficient to fully discharge delinquent installments. To the extent that a significant percentage
of the property in the District is owned by any major landowner, any Merchant Builders or any other property
owner, and such owner is the subject of bankruptcy proceedings, the payment of the Special Tax and the ability
of the Authority to foreclose the lien of a delinquent unpaid Special Tax could be extremely curtailed by
bankruptcy, insolvency, or other laws generally affecting creditors' rights or by the laws of the State relating to
judicial foreclosure.
On July 30, 1992, the United States Court of Appeals for the Ninth circuit issued its opinion in a
bankruptcy case entitled In re Glasplv Alarine Industries. In that case, the court held that ad valorem property
taxes levied by Snohomish County in the State of Washington after the date that the property owner filed a
petition for bankruptcy were not entitled to priority over a secured creditor with a prior lien on the property. The
court upheld the priority of unpaid taxes imposed after the filing of the bankruptcy petition as "administrative
expenses" of the bankruptcy estate, payable after all secured creditors. As a result, the secured creditor was to
foreclose on the property and retain all of the proceeds of the sale except the amount of the pre-petition taxes.
According to the court's ruling, as administrative expenses, post-petition taxes would have to be paid,
assuming that the debtor has sufficient assets to do so. In certain circumstances, payment of such administrative
expenses may be allowed to be deferred. (lnce the property is transferred out of the bankruptcy estate (through
foreclosure or otherwise) it would at that time become subject to current ad valorem taxes.
The Act provides that the Special Taxes are secured by a continuing lien, which is subject to the same
lien priority in the case of delinquency as ad valorem taxes. No case law exists with respect to how a bankruptcy
court wou[d treat the lien for tlie Special Taxes levied after the filing of a petition in bankruptcy. GlaspJ.v is
controlling precedent for bankruptcy courts in the State. If the Glasplv precedent was applied to the levy of the
Special Tax, the amount of Special Tax received from parcels whose owners declare bankruptcy could be
reduced.
It should also be noted that on October 22, 1994, Congress enacted 11 U. S. C. Section 362(b )(18), which
added a new exception to the automatic stay for ad valorem property taxes imposed by a political subdivision
after the filing of a bankruptcy petition. Pursuant to this new provision of law, in the event of a bankruptcy
petition filed on or after (lctober 22, 1994, the lien for ad valorem taxes in subsequent fiscal years will attach
even if the property is part of the bankruptcy estate. Bondowners should be aware that the potential effect of 11
U.S. C. Section 362(b)( 18) on the Special Taxes depends upon whether a court were to determine that the Special
Taxes should be treated like ad valorem taxes for this purpose.
Payments by FDIC and Other Federal Agencies
The ability of the Authority to collect interest and penalties specified by state law and to foreclose the
lien of delinquent Special Taxes may be limited in certain respects with regard to properties in which the FDIC,
the Drug Enforcement Agency, the Internal Revenue Service or other similar federal govemmental agencies has
or obtains an interest.
Specifically, with respect to the FDIC, on June 4, 1991, the FDIC issued a Statement of Policy Regarding
the Payment of State and Local Property Taxes (the "1991 Policy Statement"). The 1991 Policy Statement was
revised and superseded by a new Policy Statement effective January 9, 1997 (the "Policy Statement"). The
Policy Statement provides that real property owned by the FDIC is subject to state and local real property taxes
only if those taxes are assessed according to theproperty' s value, and that the FDIC is immune from real property
taxes assessed on any basis other than property value. According to the Policy Statement, the FDIC will pay its
property tax obligations when they become due and payable and will pay claims for delinquent property taxes
as promptly as is consistent with sound business practice and the orderly administration of the institution's
affairs, unless abandonment of the FDIC's interest in the property is appropriate. The FDIC will pay claims for
interest on delinquent property taxes owed at the rate provided under state law, to the extent the interest payment
obligation is secured by a valid lien. The FDIC will not pay any amounts in the nature of fines or penalties and
will not pay nor recognize liens for such amounts. If any property taxes (including interest) on FDIC owned
property are secured by a valid lien (in effect before the property became owned by the FDIC), the FDIC will
pay those claims. The Policy Statement further provides that no property of the FDIC is subject to levy,
51
attachment, garnishment, foreclosure or sale without the FDIC's consent. In addition, the FDIC will not permit
a lien or security interest held by the FDIC to be eliminated by foreclosure without the FDIC's consent.
The Policy Statement states that the FDIC generally will not pay non ad valorem taxes, including special
assessments, on property in which it has a fee interest unless the amount of tax is fixed at the time that the FDIC
acquires its fee interest in the property, nor will it recognize the validity of any lien to the extent it purports to
secure the payment of any such amounts. Special taxes imposed under the Act and a special tax formula which
determines the special tax due each year, are specifically identified in the Policy Statement as being imposed each
year and therefore covered by the FDIC's federal immunity. With respect to property in California owned by
the FDIC on January 9, 1997, and that was owned by theResolution Trust Corporation (the "RTC") on December
31, 1995, or that became theproperty of the FDIC through foreclosure of a security interest held by the RTC on
that date, the FDIC will continue the RTC's prior practice of paying special taxes imposed pursuant to the Act
if the taxes were imposed prior to the RTC's acquisition of an interest in the property. All other special taxes
may be challenged by the FDIC.
The Authority is unable to predict what effect the application of the Policy Statement would have in the
event of a delinquency on a parcel within the District in which the FDIC has or obtains an interest, although
prohibiting the lien of the FDIC to be foreclosed at a judicial foreclosure sale would reduce or eliminate the
persons willing to purchase a parcel at a foreclosure sale. Bondowners should assume that the District will be
unable to foreclose on any parcel owned by the FDIC. Such an outcome could cause a draw on the Senior
Subaccount or Subordinate Subaccount within the Reserve Fund and perhaps, ultimately, a default in payment
on the 2006 Bonds. Based upon the secured tax roll as of January 1, 2006, the FDIC does not presently own any
of the property in the District. The Authority expresses no view concerning the likelihood that the risks described
above will materialize while the 2006 Bonds are outstanding.
Payment of Special Tax Not a Personal Obligation of the Property Owners
An owner of Taxable Property is not personally obligated to pay the Special Tax. Rather, the Special
Tax is an obligation only againstthe parcels of Taxable Property. If the value of the parcels of Taxable Property
is not sufficient, taking into account other obligations also payable thereby to fully secure the Special Tax, the
District has no recourse against the owner.
Factors Affecting Parcel Values and Aggregate Value
Geologic. Topographic and Climatic Conditions. The value of the Taxable Property in the District in
the future can be adversely affected by a variety of additional factors, particularly those which may affect
infrastructure and other public improvements and private improvements on the parcels of Taxable Property and
the continued habitability and enjoyment of such private improvements. Such additional factors include, without
limitation, geologic conditions such as earthquakes and volcanic eruptions, topographic conditions such as earth
movements, landslides, liquefaction, floods or fires, and climatic conditions such as tornadoes, droughts, and the
possible reduction in water allocation or availability. It can be expected that one or more of such conditions may
occur and may result in damage to improvements of varying seriousness, that the damage may entail significant
repair orreplacement costs and that repair orreplacement may never occur either because ofthe cost or because
repair or replacement will not facilitate habitability or other use, or because other considerations preclude such
repair or replacement. Under any of these circumstances, the value of the parcels of Taxable Property may well
depreciate or disappear.
Seismic Conditions. The District, like all California communities, may be subject to unpredictable
seismic activity. The occurrence of seismic activity in the District could result in substantial damage to
properties in the District which, in turn, could substantially reduce the value of such properties and could affect
the ability or willingness ofthe property owners to pay their Special Taxes. Any major damage to structures as
a result of seismic activity could result in greater reliance on undeveloped property in the payment of Special
Taxes.
Legal Requirements. (lther events which may affect the value of a parcel of Taxable Property in the
District include changes in the law or application of the law. Such changes may include, without limitation, local
growth control initiatives, local utility connection moratoriums and local application of statewide tax and
governmental spending limitation measures.
52
No Acceleration Provisions
The 2006 Bonds do not contain a provision allowing for the acceleration ofthe 2006 Bonds in the event
of a payment default or other default under the terms of the 2006 Bonds or the Fiscal Agent Agreement. So long
as the 2006 Bonds are in book-entry form, DTC will be the sole Bondowner and will be entitled to exercise all
rights and remedies of Bond owners.
Community Facilities District Formation
California voters, on June 6, 1978, approved an amendment ("Article XIIIA") to the California
Constitution. Section 4 of Article XIIIA, requires a vote of two-thirds of the qualified electorate to impose
"special taxes," or any additional ad valorem. sales or transaction taxes on real property. At an election held
pursuant to the Act, more than two-thirds of the qualified electors within the District, consisting of the
landowners within the boundaries ofthe District, authorized the District to incur bonded indebtedness to finance
the development of the property within the District and approved the Rate and Method of Apportionment. The
Supreme Court of the State has not yet decided whether landowner elections (as opposed to resident elections)
satisfy requirements of Section 4 of Article XIIIA, nor has the Supreme Court decided whether the special taxes
of a District constitute a "special tax" for purposes of Article XIIIA.
Section 53341 ofthe Act requires that any action or proceeding to attack, review, set aside, void or annul
the levy of a special tax or an increase in a special tax pursuant to the Act shall be commenced within 30 days
after the special tax is approved by the voters. No such action has been filed with respect to the Special Tax.
Billing of Special Taxes
A special tax formula can result in a substantially heavier property tax burden being imposed upon
properties within a District than elsewhere in a city or county, and thiS ill turn can lead to prolilems in the
collection of the special tax. In some Districts the taxpayers have refused to pay the special tax and have
commenced litigation challenging the special tax, the District and the bonds issued by the District.
Under provisions of the Act, the Special Taxes are billed to the properties within the District which were
entered on the Assessment Roll of the County Assessor by January 1 of the previous fiscal year on the regnlar
property tax bills sent to owners of such properties. Such Special Tax installments are due and payable, and bear
the same penalties and interest for non-payment, as do regnlar property tax installments. These Special Tax
installment payments cannot be made separately from property tax payments. Therefore, the unwillingness or
inability of a property owner to pay regnlar property tax bills as evidenced by property tax delinquencies may
also indicate an unwillingness or inability to make regnlar property tax payments and installment payments of
Special Taxes in the future. See "SECURITY FOR THE 2006 BONDS Proceeds of Foreclosure Sales," for
a discussion of the provisions which apply, and procedures which the District is obligated to follow, in the event
of delinquency in the payment of installments of Special Taxes.
Collection of Special Tax
In order to pay debt service on the 2006 Bonds, it is necessary that the Special Tax levied against land
within the District be paid in a timely manner. The District has covenanted in the Fiscal Agent Agreement under
certain conditions to institute foreclosure proceedings against property with delinquent Special Tax in order to
obtain funds to pay debt service on the 2006 Bonds. If foreclosure proceedings were instituted, any mortgage
or deed of trust holder could, but would not be required to, advance the amount of the delinquent Special Tax
to protect its security interest. In the event such superior court foreclosure is necessary, there could be a delay
in principal and interest payments to the Bondowners pending prosecution of the foreclosure proceedings and
receipt of the proceeds of the foreclosure sale, if any. No assurances can be given that the real property subject
to foreclosure and sale at a judicial foreclosure sale will be sold or, if sold, that the proceeds of such sale will
be sufficient to pay any delinquent Special Tax installment. Although the Act authorizes the Authority as the
Governing Board of the District to cause such an action to be commenced and diligently pursued to completion,
the Act does not specify the obligations of the Governing Board with regard to purchasing or otherwise acquiring
any lot or parcel of property sold at the foreclosure sale if there is no other purchaser at such sale. See
"SECURITY FOR THE 2006 BONDS Proceeds of Foreclosure Sales."
53
Right to Vote on Taxes Act
An initiative measure commonly referred to as the "Right to Vote on Taxes Act" (the "Initiative") was
approved by the voters of the State at the November 5, 1996 general election. The Initiative added Article XIIIC
("Article XIIIC") and Article XIIID to the California Constitution. According to the "Title and Summary" of
the Initiative prepared by the California Attorney General, the Initiative limits 'the authority oflocal govemments
to impose taxes and property-related assessments, fees and charges." The provisions of the Initiative have not
yet been interpreted by the courts, although a number oflawsuits have been filed requesting the courts to interpret
various aspects of the Initiative.
Among other things, Section 3 of Article XIII states that" . . . the initiative power shall not be prohibited
or otherwise limited in matters of reducing or repealing any local tax, assessment, fee or charge." The Act
provides for a procedure, which includes notice hearing, protest and voting requirements to alter the rate and
method of apportionment of an existing special tax. However, the Act prohibits a legislative body from adopting
any resolution to reduce the rate of any special tax or terminate the levy of any special tax pledged to repay any
debt incurred pursuant to the Act unless such legislative body determines that the reduction or termination of the
special tax would not interfere with the timely retirement of that debt. On July 1, 1997, a bill signed into law by
the Governor of the State enacting Govemment Code Section 5854, which states that:
"Section 3 of Article XIIIC of the California Constitution, as adopted at the
November 5, 1996, general election, shall not be construed to mean that any
owner or beneficial owner of a municipal security, purchased before or after
that date, assumes the risk of, or in any way consents to, any action by initiative
measure that constitutes an impairment' of contractual 'rights protected by
Section 10 of Article I of the United States Constitution."
Accordingly, although the matter is not free from doubt, it is likely that the Initiative has not conferred
on the voters the power to repeal orreduce the Special Taxes if such reduction would interfere with the timely
retirement of the 2006 Bonds.
It may be possible, however, for voters or the District to reduce the Special Taxes in a manner which
does not interfere with the timely repayment of the 2006 Bonds but which does reduce the maximum amount of
Special Taxes that may be levied in any year below the existing levels. Therefore, no assurance can be given
with respect to the levy of Special Taxes for Administrative Expenses. Furthermore, no assurance can be given
with respectto the future levy of the Special Taxes in amounts greater than the amount necessary for the timely
retirement of the 2006 Bonds.
Like its antecedents, the Initiative is likely to undergo both judicial and legislative scrutiny before its
impact on the District and its obligations can be determined. Certain provisions of the Initiative may be examined
by the courts for their constitutionality under both State and federal constitutional law. The District is not able
to predict the outcome of any such examination.
The foregoing discussion of the Initiative should not be considered an exhaustive or authoritative
treatmentofthe issues. The District does not expect to be in a position to control the consideration or disposition
of these issues and cannot predict the timing or outcome of any judicial or legislative activity in this regard.
Interim rulings, final decisions, legislative proposals and legislative enactments may all affect the impact of the
Initiative on the 2006 Bonds as well as the market for the 2006 Bonds. Legislative and court calendar delays and
other factors may prolong any uncertainty regarding the effects of the Initiative.
Ballot Initiatives and Legislative Measures
The Initiative was adopted pursuant to a measure qualified for the ballot pursuant to California's
constitutional initiative process and the State Legislature has in the past enacted legislation which has altered the
spending limitations or established minimum funding provisions for particular activities. From time to time,
other initiative measures could be adopted by California voters or legislation enacted by the State Legislature.
The adoption of any such initiative or enactment oflegislation might place limitations on the ability of the State,
the County, the City, the District or local districts to increase revenues or to increase appropriations or on the
ability of a property owner to complete the development of the property.
54
Limited Secondary Market
There can be no gnarantee that there will be a secondary market for the 2006 Bonds or, if a secondary
market exists, that such 2006Bonds can be sold for any particular price. Although the Authority, and the District
have committed to provide certain statutorily-required financial and operating information, there can be no
assurance that such information will be available to Bondowners on a timely basis. The failure to provide the
annual financial and operating information does not give rise to monetary damages but merely an action for
specific performance. Occasionally, because of general market conditions, lack of current information or because
of adverse history or economic prospects connected with a particular issue, secondary marketing practices in
connection with a particular issue are suspended or terminated. Additionally, prices of issues for which a market
is being made will depend upon then prevailing circumstances. Such prices could be substantially different from
the original purchase price.
Loss of Tax Exem ption
As discussed under the caption "LEGAL MATTERS Tax Exemption," the interest on the 2006 Bonds
could become includable in gross income for federal income tax purposes retroactive to the date of issuance of
the 2006 Bonds as a result of acts or omissions of the Authority in violation of certain provisions of the Code and
the covenants of the Fiscal Agent Agreement. In order to maintain the exclusion from gross income for federal
income tax purposes of the interest on the 2006 Bonds, the Authority has covenanted in the Fiscal Agent
Agreement not to take any action, or fail to take any action, if such action or failure to take such action would
adversely affect the exclusion from gross income of interest on the 2006 Bonds under the Internal Revenue Code
of 1986, as amended. Should such an event of taxability occur, the 2006 Bonds are not subject to early
redemption and will remain outstanding to maturity or until redeemed under the optional redemption or
mandatory redemption provisions of the Fiscal Agent Agreement.
Limitations on Remedies
Remedies available to the Bondowners may be limited by a variety of factors and may be inadequate to
assure the timely payment of principal of and interest on the 2006 Bonds or to preserve the tax-exempt status of
the 2006 Bonds. See" Payments by FDIC and other Federal Agencies,"" No Acceleration Provisions" and
"- Billing of Special Taxes" herein.
SPECIAL RISK CONSIDERATIONS SPECIFIC TO THE SERIES B BONDS
In addition to the risks described under the heading "SPECIAL RISK C( lNSIDERATI( lNS," there are
several additional risks that are relevant to an investment in the Series B Bonds. The Series B Bonds are
subordinate in right of payment to the Series A Bonds. The Series B Bonds are not rated and are not insured by
[INSURER]. For this reason, investments in the Series B Bonds involve a high degree of risk and are not
appropriate for all investors.
Subordination of Series B Bonds
The Series B Bonds are subordinate to the Series A Bonds in right of payment. Special Taxes will be
available to pay obligations on the Series B Bonds only after all payments and deposits in respect of the Series
ABonds have been made as set forth herein and in the Fiscal Agent Agreement. In the event of delinquencies
in the payment of Special Taxes which exceed the expected amount of debt service coverage from the Special
Taxes, there may not be sufficient Special Tax Revenues available to pay interest or principal due on any or all
of the Series B Bonds then outstanding.
Limited Secondary Market
As stated herein, investment in the Series B Bonds poses certain economic risks which may not be
appropriate for certain investors, and only persons with substantial financial resources who understand the risk
of investment in the Series B Bonds should consider such investment. There can be no gnarantee that there will
be a secondary market for purchase or sale of the Series B Bonds or, if a secondary market exists, that the Series
BBonds can or could be sold for any particular price. From time to time there may be no market for the Series
B Bonds, depending upon prevailing market conditions, the financial condition or market position of firms who
55
may make the secondary market, the financial condition and results of operations of the owners of property
located within the boundaries of the District, and the extent of the development of property within the District.
No Ratings of Series B Bonds
The Series B Bonds are not rated by any rating agency, and the District does not presently intend to seek
any rating of the Series B Bonds nor does the District anticipate that the Series B Bonds would qualify for an
investment grade rating due to the structure and size of the Series A Bonds.
No Insurance; Remedies Controlled by [INSURER]
The Municipal Bond Insurance Policy does not apply to the Series B Bonds.
The Fiscal Agent Agreement provides that, upon the occurrence of a default with respect to the Series B
Bonds, any Owner may pursue any available remedy at law or in equity to enforce the payment of the Series B
Bonds;provided. however, that [INSURER] shall have consented to such action. Given this provision, so long
as the Series A Bonds are outstanding, the exercise of remedies for any default under the Fiscal Agent Agreement
will be controlled by [INSURER] and not by the Owners of the Series B Bonds.
LEGAL MATTERS
Legal Opinion
The legal opinion of Quint & Thimmig LLP, San Francisco, California, Bond Counsel, approving the
validity of the 2006 Bonds will be made available to purchasers at the time of original delivery and the form of
such opinion is attached hereto as Appendix F. .
Tax Exem ption
In the opinion of Quint & Thimmig LLP, San Francisco, California, Bond Counsel, subject, however
to the qualifications set forth below, under existing law, the interest on the 2006 Bonds is excluded from gross
income for federal income tax purposes and such interest is not an item of tax preference for purposes of the
federal alternative minimum tax imposed on individuals and corporations; it should be noted, however, that, for
purposes of computing the alternative minimum tax imposed on corporations (as defined for federal income tax
purposes), such interest is taken into account in determining certain income and earnings.
The opinions set forth in the preceding paragraph are subject to the condition that the Authority comply
with all requirements of the Internal Revenue Code of 1986, as amended (the "Code") that must be satisfied
subsequent to the issuance of the 2006 Bonds in order that such interest be, or continue to be, excluded from
gross income for federal income tax purposes. The Authority has covenanted to comply with each such
requirement. Failure to comply with certain of such requirements may cause the inclusion of interest on the 2006
Bonds in gross income for federal income tax purposes to be retroactive to the date of issuance of the 2006
Bonds.
In the further opinion of Bond Counsel, interest on the 2006 Bonds is exempt from California personal
income taxes.
Bondowners should also be aware that the ownership or disposition of, or the accrual or receipt of
interest on, the 2006 Bonds may have federal or state tax consequences other than as described above. Bond
Counsel expresses no opinion regarding any federal or state tax consequences arising with respect to the 2006
Bonds other than as expressly described above.
The form of Bond Counsel's opinion is set forth in Appendix F.
No Litigation
At the time of delivery of the 2006 Bonds, the Authority and the District will certify that there is no
action, suit, proceeding, inquiry or investigation, at law or in equity, before or by any court or regnlatory agency,
56
public board or body pending with respect to which they have been served with process or threatened against the
Authority or the District affecting their existence, or the titles of their respective officers, or seeking to restrain
or to enjoin the issuance, sale or delivery of the 2006 Bonds, the application of the proceeds thereof in
accordance with the Fiscal Agent Agreement, or the collection or application of the Special Tax to pay the
principal of and interest on the 2006 Bonds, or in any way contesting or affecting the validity or enforceability
of the 2006 Bonds, or the Fiscal Agent Agreement or any action of the Authority or the District contemplated
by either of said documents, or in any way contesting the completeness or accuracy of this (lfficial Statement
or any amendment or supplement hereto, or contesting the powers of the Authority or the District or their
authority with respect to the 2006 Bonds or any action of the Authority or the District contemplated by either of
said documents, nor, to the knowledge of the Authority, is there any basis therefor.
No General Obligation of the Authority or the District
The 2006 Bonds are not general obligations ofthe Authority or the District, but are limited obligations
of the Authority for the Districtpayable solely from proceeds of the Special Tax and proceeds of the 2006 Bonds,
including amounts in the Subaccounts within the Reserve Fund (including amounts available under the Reserve
Surety credit thereto), the Special Tax Fund and the Bond Fund. Any tax levied for the payment of the 2006
Bonds shall be limited to the Special Taxes to be collected within the jurisdiction of the District.
RATINGS
Ratings on Insured Bonds
Standard &Poor' s Ratings Services has assigned a rating of _, to the Insured Bonds (i.e., the Series
A Bonds) with the understanding that, upon delivery of the Insured Bonds, the Policy will be issued with respect
to such maturities of the Insured Bonds by [INSURER]. Absent the Policy, the unJerlying rating for Series A
Bonds are by Standard & Poor's. Such ratings reflect only the views of such organization and any desired
explanation of the significance of such ratings should be obtained from the rating agency furnishing the same.
Generally, a rating agency bases it rating on the information and materials furnished to it and on investigations,
studies and assumptions of its own. Some information provided to the rating agency by the District may not
appear in this (lfficial Statement. There is no assurance such ratings will continue for any given period of time
or that such ratings will not be revised downward or withdrawn entirely by the rating agencies, if in the judgment
of such rating agencies, circumstances so warrant. Any such downward revision or withdrawal of such ratings
may have an adverse effect on the market price for the Insured Bonds.
The District has not made, and does not contemplate making, application to any rating agency for the
assignment of a rating for the Series B Bonds.
lTNDERWRITING
The Series A Bonds are being purchased by Stone & Youngberg LLC at a purchase price of
$ (which represents the aggregate principal amount of the Series A Bonds ($ ), less
original issue discount of $ and less an underwriter's discount of$ ) and the Subordinate
Series B Bonds are being purchased by Stone & Youngberg LLC at a purchase price of $ (which
represents the aggregate principal amount of the Series A Bonds ($ ), less original issue discount of
$ and less an underwriter's discount of $ ).
The purchase agreement relating to the 2006 Bonds provides that the Underwriter will purchase all of
the 2006 Bonds, if any are purchased, the obligation to make such purchase being subject to certain terms and
conditions set forth in such purchase agreement.
The Underwriter may offer and sell 2006 Bonds to certain dealers and others at prices lower than the
offering price stated on the inside cover page hereof. The offering prices may be changed from time to time by
the Underwriter.
57
PROFESSIONAL FEES
Fees payable to certain professionals in connection with the 2006 Bonds, including the Underwriter,
Quint & Thimmig LLP, as Bond Counsel, McFarlin & Anderson LLP, as Disclosure Counsel, and u.s. Bank
National Association, as the Fiscal Agent, are contingent upon the issuance of the 2006 Bonds. The fees of
Psomas, as Special Tax Consultant, and Fieldman, Rolapp & Associates, as Financial Advisor to the Authority,
are in part contingent upon the issuance of the 2006 Bonds.
MISCELLANEOUS
References are made herein to certain documents and reports which are brief summaries thereof which
summaries do not purport to be complete or definitive and reference is made to such documents and reports for
full and complete statement of the contents thereof.
Any statements in this (lfficial Statement involving matters of opinion, whether or not expressly so
stated, are intended as such and not as representatives of fact. This Official Statement is not to be construed as
a contract or agreement between the District or the Authority and the purchasers or owners of any of the 2006
Bonds.
The execution and delivery of the Official Statement by the District has been duly authorized by the
Authority on behalf of the District." . ..
TEMECULA PUBLIC FINANCING AUTHORITY
COMMUNITY FACILITIES DISTRICT NO. 01-2
(HARVESTON)
By:
Shawn Nelson, Executive Director,
Temecula Public Financing Authority, on behalf of
the District
58
APPENDIX A
GENERAL INFORMATION ABOUT THE CITY OF TEMECULA
The follmving information is provided for background purposes only. The City of Temecula has no
liability whatsoever with respect to the 2006 Bonds or the Fiscal Agent Agreement.
General Information
Following a vote by the residents on November 7, 1989, the City incorporated under the general laws
of the State of California on December 1, 1989. The City has a Council-Manager form of government, and is
represented by the five members of the City Council who are elected at-large to serve a four-year term. The
Mayor is selected annually by the members of the City Council.
The Temecula Community Services District (TCSD) was also established in 1989. The TCSD is
responsible for providing parks ami recreation services to the citizens ofTemecula, as well as street lighting and
slope maintenance in certain areas of the district.
(lther governmental entities, such as the State of California, the County and various school, water and
other districts, also provide various levels of service within the City of Temecula. However, the Temecula City
Council does not have a continuing oversight responsibility over these other governmental entities.
Located on Interstate 15, the City of Temecula is the lOb largest city in the Inland Empire and the 4th
largest in Riverside County (as of January, 2006), encompassing 30.15 square miles. The City of Temecula is
85 miles southeast of Los Angeles,S 5 miles north of San Diego, 61 miles southeast of Orange County, and 20
miles inland from the cities of San Juan Capistrano and Oceanside. The City's approximately 93,923 residents
are offered a broad range of housing options from apartments to luxury custom homes, with the median housing
price at $521,750.
Population
From 1995 - 2006, the City's population grew from 39,284 to 93,923, a gain of 54,639 or 139.1%. In
this same period, Riverside County added 597,759, a gain of 44.100.
CITY OF TEMECULA AND COUNTY OF RIVERSIDE POPULATION
FROM 1995 TO 2006
Temecula RiversideCountv
Year Population ~/oChaill(e Population ~/oChan[(e
1995 39,284 9.8 1,355,571
1996 41,850 6.5 1,381,781 1.9%
1997 43,760 4.6 1,400,384 1.3
1998 46,564 6.4 1,441,237 2.9
1999 48,828 4.9 1,473,307 2.2
2000 53,791 10.2 1,522,855 3.4
2001' 61,803 14.9 1,590,473 4.4
2002 73,164 18.4 1,654,220 4
2003 75,996 5.3 1,726,754 4.4
2004 78,841 3.7 1,807,858 4.7
2005" 81,921 3.9 1,888,311 4.5
2006 93,923 14.7 1,953,330 3.4
Increase includes Vail Ranch annexation.
Increase includes Redhawk annexation which added approximately 9,475 individuals, effective hme 30, 2005
,,,wrce Lilm'mlil !.>>}Jcutment "fFmc1l1ce
A-I
Construction Activity
The following table shows a five year history of construction activity in the City.
CITY OF TEMECULA
BUILDING PERMITS AND VALUATIONS
2001 - 2005
2001
2002
2003
Valuation.
Residential
$127,823,375 $100,516,1 15 $194,699,509
Non-residential
Total
,9 lino 91, 4,487 ))9 ,Ii 087 om
~lli7421i 288 ~144om 344 F30 786 510
Residential Units:
Single-family
Multiple-family
Total
944
6511
1,271
--12.
6511
142
1413
---.!.2.
944
Source" L'ons/rue/ion lndllstlY l\l?search Board.
2004
$185,041,089
'ili 1i'i8)"
$241 699322
888
--=:ill.[
1296
2005
$261,657,164
7, 749 li1)
$335 406 776
996
----2!ill
1356
The following table shows historical commercial and residential construction and property values.
CITY OF TEMECULA
COMMERCIAL AND RESIDENTIAL CONSTRUCTION AND PROPERTY VALUES
1995 - 2005
Commercial ConstructiOli1) Residential Construction(1)
Number
Fiscal Year of Units Value
1995 162 $29,221
1996 136 23,572
1997 202 32,863
1998 2113 66,226
1999 337 159,286
2000 437 52497
21)(11 265 39,511
2()()2 252 51,686
2003 304 41,402
2004 277 61,823
2()()5 116 79,578
Number
of Units
Value
$854]11
93,674
85,257
]115,527
180,840
148,660
169,687
97,773
145,387
179,071
241,322
968
987
857
835
1,384
1,]79
1,6116
938
1,]62
1,472
918
Values in thousands of dollars.
Source" (J) City ofTemecula, Building aJld Safety Department.
(2) County LaJld Use Statistical Recap Rep011.
Economic Condition
Property Values(2)
Commercial
$1466,641
1,478,230
1,347,000
1,321,1144
1,3 78,364
1,524,091
1,935,537
2,183,862
2,633,661
2,711,397
2,835,143
Residential
$ 1,539,257
1,677, 720
1,856,203
1,958,7116
2,067,549
2,303,303
2,627,716
3,1117,148
4,127,318
4,808,1 16
5488,914
Temecula's economic base is anchored by a number of firms specializing in biomedical technology and
supplies, high technology controllers and semi-conductors, among others. The City's retail base is also
experiencing growth and is home to several auto dealers including Honda, Toyota and Nissan. The following
tables set forth major manufacturing and non-manufacturing employers:
A-2
CITY OF TEMECULA
MAJOR MANUFACTURING EMPLOYERS
(As of Novem ber, 2005)
Employer
Guidant \:orporation
International Rectifier/Hexfet
Channell Commercial Corp.
Milgard Manufacturing
Bianchi International
Opto 22 Inc.
C'hernicon International
Plant Equipment, Inc.
Magnecomp Corporation
Solid State Stamping
Tension Envelope
Molding International & Engineering
Approximate
No. of Employees
2,354
71111
344
325
225
205
2111
2()()
118
110
110
102
Source" City FinaJlce Department.
Type of Business
Medical equipment
Power semi-conuuctors
Cable enclosures
Custom winuows
Leather goods
Electric/automation controls
Medical products
Telephone equipment
Manufacture computer disks
J\1anufacture electronic contacts
Envelope manufacturer
J\1anufacturer
CITY OF TEMECULA
MAJOR NON-MANUFACTURING EMPLOYERS
(As of November, 2005)
Employer
Temecula Valley Unified School
District (TVUSD)
Manpower of T emecula
Professional Hospital Supply
Albertsons
Costco Wholesale
City of T emecula
Ie: Penney \:orp.
The Scotts \:ompany
Paradise Chevrolet/Cadillac
T emecula \:reek Inn
Macy's
Southwest Traders
FFF Enterprise, Inc.
Approximate
No. of Employees
2,608
U71
Will
6114
400
315
2119
1911
184
1811
172
170
142
Source" L'tty FinaJlce lJepm1ment.
Sales Tax Revenues
Type of Business
Public school system
Business services
Wholesaler distributor
Supermarket
\Vholesale warehouse
City government
Retail
Distributor
Automobile dealer
Hospitality
Retail
Wholesale Distributor
Wholesale Distributor
Industrial and business parks offering clean industries and convenient office space provide growing
employment opportunities. The retail community is expanding rapidly with excellent shopping venues including
the regional Promenade Mall, a unique Historic Old Town area, and neighborhood strip centers. A wide selection
of restaurants allows diners to choose between nationally recognized chains or intimate dining bistros.
A-3
Year
1989-90
1999-1111
2111111-111
2()(1l-()2
2()()2-(J3
2004-05
211115-116
* Buuget estimate.
Source: City ofTemecula Finance Department
CITY OF TEMEClTLA
SALES T~X mSTORY
Amount
$632,153
$14,11119,322
$16,321,929
$19,237,317
$21,572,199
$27,802,830
$29,2()(J,()()()*
CITY OF TEMECULA
PRINCIPAL SEClTImD PROPERTY OWNERS
FOR THE YEAR ENDED JUNE 30, 2005
TaXDayer
Advanced Cardiovascular System Inc.
International Rectifier Corporation
T ernecula Towne Center Associates
Lakha-Aldenwood Properties LLC
Kimco Palm Plaza Limited Partnership
Portofino Development
Starwood Wasserman Ternecula
SICA
\:alifomia Limited Partnership
Solana Ridge LL\:
Source: Riverside County Assessor's Office.
TYDe of Business
Manufacturing
Manufacturing
Real Estate Development
Real Estate Development
Real Estate Development
Real Estate Development
Property Management
Manufacturing
Real Estate Development
Real Estate Development
2005 Assessed
Valuation
(in thousands)
$152,155
128,471
98,285
47,500
41,738
311,428
29,692
29,233
27,264
2')')44
$610,313
A-4
Percent of
Total Assessed
IV aluation)
2.050/0
173'"
1.33'"
0640/0
().560'0
() 410'0
0400/0
0.390/0
().370'0
().340'0
8.240/0
CITY OF TEMECULA
ASSESSED AND ESTIMATED ACTUAL VALUE OF TA.,XABLE PROPERTY
FOR THE FISC AI, YEARS ENDED JUNE 30, 1997 THROUGH 2005
(Values in Thousands)
Total Exemptions Net Net Total
Fiscal Year Secured and Veteran Assessed Exemptions Assessed
Taxes Unsecured Church, etc. Value Homeowners Value
1997 $3,203,1 87 $(22,479) $3,1 80,911 $(53,023) $3,127,888
1998 $3,2811,1166 $(24,432) $3,255,633 $(56,665) $3,198,969
1999 $3,446,1193 $(24,441) $3,421,652 $(611,119) $3,361,533
2000 $3,826,889 $(25,822) $3,801,068 $(61,464) $3,739,603
2001 $4,563,217 $(29,676) $4,533,542 $(64,372) $4,469,169
2()()2 $5,2111,622 $(33,3711) $5,168,252 $(68,938) $5,1199,314
2003 $6,201,896 $(30,010) $6,1 71,886 $(82,926) $6,088,960
2004 $6,931.291 $(43,142) $6,888,149 $(92,362) $6,795,787
2005 $7,794,688 $(53,240) $7,741,448 $(94,237) $7,647,211
Source: River,')'ide County Assessor's Office.
General Information
Industrial Real Estate. The City is part of the Inland Empire's industrial real estate market. In 1999,
the inland region's 313 million square feet of gross space absorption set a record. Lee & Associates found that
in June, 2004, the City had 12.5 million square feet of industrial space or 4.0% of the inland area's inventory.
Temecula's industrial vacancy rate was 5.0% representing 633,250 squarefeet of space. Among local cities, this
ranked tenth, above Moreno Valley (25,890 square feet) and below San Bernardmo (804,451 square feet).
Agriculture. The climate and soil in the City are particularly favorable for growing avocado, grape, and
citrus crops.
There are currently several agricultural management firms in the Temecula area which manage
agricultural production of thousands of acres of land owned by individual investors, partnerships and
corporations. The agricultural managers apply economies of scale, by combining many small and medium sized
parcels of land as if these parcels were one large ranch.
In addition, a substantial wine industry has been developed in the City and the surrounding area. As of
January, 2006, there were twenty-one (21) wineries which produce wine with locally grown grapes.
Climate. Temecula V alley enjoys a mild Mediterranean climate with year-round temperatures averaging
in the mid 70's. The weather is comparable to the Napa Valley, as evidenced by a thriving wine industry, with
warm, dry days and cool evenings. Summer-time temperatures, which can average in the mid 80's or the mid
90's during the day, are often cooled by afternoon ocean breezes blowing into the valley through gaps in the
Santa Ana foothills to the west. Although separated from the Pacific by the Santa Rosa range of mountains, the
Rainbow Gap funnels the mild beach climate into the valley. Mild winter temperatures average in the mid 60's.
Yearly average rainfall in Temecula is approximately 14 inches, as compiled by the Rancho California Water
District.
The quality of air in the Temecula Valley is consistently better than that of surrounding communities.
Ocean breezes flow through the Rainbow Gap almost every day, sweeping away smog. In the summer, Pacific
winds yield temperatures up to 10 degrees lower than in towns just a few miles away.
Education. The City is served by Temecula Valley Unified School District, one of the fastest growing
school districts in the State, with 5 high schools (including a continuation school), 6 middle schools, 2 charter
A-5
schools, 1 horne-schooling program, and 17 elementary schools. In addition, there are 9 private schools and
several pre-schools.
The general boundaries extend north to Jean Nicholas Road in French Valley, south to the Riverside
County line, east to Vail Lake, and west to the Temecula city limit. The District covers approximately 150 square
miles. Approximately 26,000 students (Grades K-12) are currently enrolled in the District.
The University of California, Riverside has opened an extension center in the City and Mt. San Jacinto
Community College operates a campus ten miles north of the City to serve the growing population. Temecula
began the 2000's with a well-educated population, and its population trends and school performance fignres have
allowed it to maintain that position.
Transportation. Interstate 15 and its connecting arterials provide convenient links to San Diego and
Riverside, Los Angeles (Interstate 10), Orange County (Highway 91) and San Bernardino (Interstate 215). The
French Valley Airport, 4 miles north of Interstate 15 on Winchester Road, accommodates business jets and
commuter airlines.
Housing. Temecula is unique in that its residents are about equidistant from both San Diego and (lrange
County via the Interstate 15 freeway. As a result, it is receiving growth impulses from the south as well as the
north, as families spill into the Inland Empire from Southern California's more congested coastal counties.
Temecula's rapid population growth represents a relatively new phenomenon in Southern California. A large
number of the City's new residents have migrated north from San Diego County along the Interstate 5 freeway.
Normally, a Southern California community undergoes rapid growth only when population spills from (lrange
or Los Angeles counties. The latest population data shows Temecula with 93,923 residents as of January 1, 2006,
which includes the annexation of the Vail Ranch area in July, 2001 and the Redhawk annexation in June, 2005.
APPENDIX B
RATE AND METHOD OF APPORTIONMENT FOR
COMMUNITY FACILITIES DISTRICT NO. 01-2 (HARVEST ON)
B-1
APPENDIX C
SUPPLEMENTAL REPORT AND SUMMARY APPRAISAL REPORT
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APPENDIX D
SUMMARY OF CERTAIN PROVISIONS OF THE FISCAL AGENT AGREEMENT
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APPENDIX E
FORM OF COMMUNITY FACILITIES DISTRICT
CONTINUING DISCLOSURE AGREEMENT
E-l
APPENDIX F
FORM OF OPINION OF BOND COUNSEL
September , 2006
Board of Directors
Temecula Public Financing Authority
43200 Business Park Drive .
Temecula, California 92590
$ Temecula Public Financing Authority
Community Facilities District 01-2 (Harveston) 2006 Special Tax
Refunding Bonds, Series A and $_ _ Temecula Public
Financing Authority Community Facilities District 01-2 (Harveston)
2006 Special Tax Refunding Bonds, Subordinate Series B
Members of the Board of Directors:
OPINION:
We have acted as bond counsel to the Temecula Public Financing Authority (the "Authority") in
connection with the issuance by the Authority of its $ Temecula Public Financing Authority
Community Facilities District 01-2 (Harveston) 2006 SpeCial lax Kefunding Bonds, Series A (the "Senior
Bonds") and its $ Temecula Public Financing Authority Community Facilities District 01-2
(Harveston) 2006 ~peclal Tax Kefunding Bonds, Subordinate Series B (the "Subordmate Bonds" and, together
with the Senior Bonds, the "Bonds"), pursuant to the provisions of Articles 10 and 11 of Chapter 3 of Part 1 of
Division 2 of Title 5 of the California Govemment Code (the "Refunding Law"), a Fiscal Agent Agreement,
dated as of September 1, 2006 (the "Fiscal Agent Agreement"), by and between the Authority for and on behalf
of the Temecu1aPublic Financing Authority Community Facilities District 0 1-2 (Harveston)(ihe "District"), and
U.S. Bank National Association, as fiscal agent, and Resolution No. TPFA 06- adopted by the Authority
on June 27, 2006 (the "Resolution"). We have examined the law and such certllled proceedings and other
documents as we deem necessary to render this opinion.
As to questions of fact material to our opinion, we have relied upon representations of the Authority
contained in the Resolution and in the certified proceedings and certifications of public officials and others
furnished to us, without undertaking to verify the same by independent investigation.
Based upon the foregoing, we are of the opinion, under existing law, as follows:
1. The Authority is duly created and validly existing as a joint exercise of powers authority, with the
power to adopt the Resolution, enter into the Fiscal Agent Agreement and perform the agreements on its part
contamed therem and Issue the Bonds.
2. The Fiscal Agent Agreement has been duly entered into by the Authority, for and on behalf of the
District, and constitutes a valid and binding obligation of the Authority enforceable upon the Authority.
3. Pursuant to the Act, the Fiscal Agent Agreement creates a valid lien on the funds pledged by the
Fiscal Agent Agreement for the security of the Bonds, with the lien thereon under the Fiscal Agent Agreement
for the security of the Series A Bonds being senior to the lien thereon under the Fiscal Agent Agreement for the
security of the Series B Bonds.
4. The Bonds have been duly authorized, executed and delivered by the Authority and are valid and
binding limited obligations of the Authority on behalf of the District, payable solely from the sources provided
therefor in the Fiscal Agent Agreement, in the manner and in the priority set forth in 1he Fiscal Agent Agreement.
The Fiscal Agent Agreement requires that certain funds held thereunder be applied to the payment of the Senior
Bonds prior to the use of such funds to pay the Subordinate Bonds.
F-l
Temecula Public Financing Authority
September ~, 2006
Page 2
5. Subject to the Authority's compliance with certain covenants, interest on the Bonds is excludable
from gross income of the owners thereof for federal income tax purposes under section 103 of the Internal
Revenue Code of 1986, as amended (the "Code") and, under section 55 ofthe Code, is not included as an item
of tax preference in computing the federal alternative minimum tax for individuals and corporations under the
Code but is taken into account III computing an adjustment used in determining the federal arternative minimum
tax for certain corporations. Failure by the Authority to comply with one or more of such covenants could cause
interest on the Bonds to not be excludable from gross income under section 103 of the Code for the federal
income tax purposes retroactively to the date of issuance of the Bonds.
. 6. The interest on the Bonds is exempt from personal income taxation imposed by the State of
California.
Ownership of the Bonds may result in other tax consequences to certain taxpayers, and we express no
opinion regarding any such collateral consequences arising with respect to the Bonds. .
The rights of the owners of the Bonds and the enforceability of the Bonds, the Resolution and the Fiscal
Agent Agreement may be subjectto bankruptcy, insolvency, reorganization, moratorium and other similar laws
atl'ecting creditors' fights heretofore or hereafter enacted and also may be subject to the exercise of judicial
discretion in accordance with general principles of equity. .
In rendering this opinion, we have relied upon certifications of the Authority and others with res fleet to
certain material facts. Our opinion represents our 1egal judgment based upon such review of the law ana facts
that we deem relevant to render our opinion and is not a gnarantee ofa result. This opinion is given as of the date
hereof and we assume no obligation to revise or supplement this opinion to reflect any facts or circumstances that
may hereafter corne to our attention or any changes in law that may hereafter occur.
Respectfully submitted,
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APPENDIX G
BOOK-ENTRY SYSTEM
The following description of the procedures and record keeping with respect to beneficial ownership
interests in the 2006 Bonds. payment of principal of and interest on the 2006 Bonds to Direct Participants.
Indirect Participants or Beneficial Owners (as such terms are defined below) of the 2006Bonds, confirmation
and transfer of beneficial ownership interests in the 2006 Bonds and other Bond-related transactions by and
benveenDTC, DirectParticipants.Indirect Participants andBenefic ial Owners of the 2006Bonds is based solely
on informationfilrnished by DTC to the Districtwhich theDistrict believes to be reliable. but the Authority. the
Districtand the r Jnderwriter do not and cannot make any independent representations concerning these matters
amldo not take responsibility for the accuracy or completeness thereof Neither the DTC, Direct Participants.
Indirect Participants nor the Beneficial Owners should relv on the foregoing information with respect to such
matters, but should instead confirm the same with DTC or the DTC Participants, as the case may be.
The Depository Trust Company ("DTC"), New York, New York, will aetas securities depository for the
2006 Bonds. The 2006 Bonds will be issued as fully-registered securities registered in the name of Cede & Co.
(DTC's partnership nominee) or such other name as may be requested by an authorized representative of DTC.
(lne fully-registered 2006 Bond will be issued for each maturity of the 2006 Bonds, each in the aggregate
principal amount of such maturity, and will be deposited with DTC.
DTC, the world's largest securities depository, is a limited-purpose trust company organized under the
New York Banking Law, a "banking organization" within the meaning of the New York Banking Law, a member
of the Federal Reserve System, a "clearing corporation" within the meaning of the New York Uniform
Commercial Code, and a "clearing agency" registered pursuant to the provisions of Section 17 A ofthe Securities
Exchange Act of 1934. DTC holds and provides asset servicing for over 2.2 million issues of U.S. and non-U.S.
equity issues, corporate and municipal debt issues, and money market instruments from over 100 countries that
DTC's participants ("Direct Participants") deposit with DTC. DTC also facilitates the post-trade settlement
among Direct Participants of sales and other securities transactions in deposited securities, through electronic
computerized book-entry transfers and pledges between Direct Participants' accounts. This eliminates the need
for physical movement of securities certificates. Direct Participants include both U.S. and non-U.S. securities
brokers and dealers, banks, trust companies, clearing corporations, and certain other organizations. DTC is a
wholly-owned subsidiary of The Depository Trust & Clearing Corporation ("DTCC"). DTCC, in turn, is owned
by a number of Direct Participants ofDTC and Members of the National Securities Clearing Corporation, Fixed
Income Clearing Corporation, and Emerging Markets Clearing Corporation, (NSCC, PICc, and EMCC, also
subsidiaries ofDTCC), as well as by the New York Stock Exchange, Inc., the American Stock Exchange LLC,
and the National Association of Securities Dealers, Inc. Access to the DTC system is also available to others
such as both U.S. and non-U.S. securities brokers and dealers, banks, trust companies, and clearing corporations
that clear through or maintain a custodial relationship with a Direct Participant, either directly or indirectly
("Indirect Participants"). DTC has Standard & Poor's highest rating: AAA. The DTC Rules applicable to its
Participants are on file with the Securities and Exchange Commission. More information about DTC can be
found at www.dtcc.com and www.dtc.org.
Purchases of Bonds under the DTC system must be made by or through Direct Participants, which will
receive a credit for the 2006 Bonds on DTC's records. The ownership interest of each actual purchaser of each
2006 Bond ("Beneficial Owner") is in turn to be recorded on the Direct and Indirect Participants' records.
Beneficial (lwners will not receive written confirmation from DTC of their purchase. Beneficial (lwners are,
however, expected to receive written confirmations providing details of the transaction, as well as periodic
statements of their holdings, from the Direct or Indirect Participant through which the Beneficial (lwner entered
into the transaction. Transfers of ownership interests in the 2006 Bonds are to be accomplished by entries made
on the books of Direct and Indirect Participants acting on behalf of Beneficial Owners. Beneficial Owners will
not receive certificates representing their ownership interests in the 2006 Bonds, except in the event that use of
the book-entry system for the 2006 Bonds is discontinued.
To facilitate subsequent transfers, all Bonds deposited by Direct Participants with DTC are registered
in the name of DTC's partuership nominee, Cede & Co., or such other name as requested by an authorized
G-l
representative of DTC. The deposit of the 2006 Bonds with DTC and their registration in the name of Cede &
Co. or such other DTC nominee do not effect any change in beneficial ownership. DTC has no knowledge of
the actualBeneficial Owners of the 2006Bonds; DTC's records reflect only the identity of the DirectParticipants
to whose accounts such 2006 Bonds are credited, which mayor may not be the Beneficial (lwners. The Direct
or Indirect Participants will remain responsible for keeping account oftheir holdings on behalf of their customers.
Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants
to Indirect Participants, and by Direct Participants and Indirect Participants to Beneficial (lwners will be
governed by arrangements among them, subject to any statutory or regnlatory requirements as may be in effect
from time to time. Beneficial Owners of2006 Bonds may wish to take certain steps to augment the transmissions
to them of notices of significant events with respect to the 2006 Bonds, such as redemptions, tenders, defaults,
and proposed amendments to the 2006 Bonds documents. For example, Beneficial Owners of the 2006 Bonds
may wish to ascertain that the nominee holding the 2006 Bonds for their benefit has agreed to obtain and transmit
notices to Beneficial Owners.
Redemption notices shall be sent to DTC. Ifless than all of the 2006 Bonds are being redeemed, DTC's
practice is to determine by lot the amount of the interest of each Direct Participant in such maturity to be
redeemed.
Neither DTC nor Cede & Co. (nor such other DTC nominee) will consent or vote with respect to the
2006 Bonds unless authorized by a Direct Participant in accordance with DTC's Procedures. Under its usual
procedures, DTC mails an (lmnibus Proxy to the District as soon as possible after the record date. The (lmnibus
Proxy assigns Cede & Co. 's consenting or voting rights to those Direct Participants to whose accounts the 2006
Bonds are credited on the record date (identified in a listing attached to the Omnibus Proxy).
Principal, redemption price and interest payments on the 2006 Bonds will be made to Cede & Co., or
such other nominee as may be requested by an authorized representative ofDTC. DTC's practice is to credit
Direct Participants ' accounts upon DTC's receipt of funds and corresponding detail information from the District,
the Authority or the Fiscal Agent, on payable date in accordance with their respective holdings shown on DTC's
records. Payments by Participants to Beneficial (lwners will be governed by standing instructions and customary
practices, as is the case with securities held for the accounts of customers in bearer form or registered in "street
name," and will be the responsibility of such Participant and not ofDTC, the Fiscal Agent, the Authority or the
District, subject to any statutory or regnlatory requirements as may be in effect from time to time. Payment of
principal, redemption price and interest payments to Cede & Co. (or such other nominee as may be requested by
an authorized representative of DTC) is the responsibility of the District or the Fiscal Agent, disbursement of
such payments to Direct Participants will be the responsibility ofDTC, and disbursement of such payments to
the Beneficial Owners will be the responsibility of Direct and Indirect Participants.
DTC may discontinue providing its service as depository with respect to the 2006 Bonds at any time by
giving reasonable notice to the District or Fiscal Agent. Under such circumstances, in the event that a successor
depository is not obtained, the 2006 Bond certificates are required to be printed and delivered.
The Authority may decide to discontinue use of the system of book-entry transfers through DTC (or a
successor securities depository). In that event, 2006 Bond certificates will be printed and delivered to DTC.
The information in this section concerning DTC and DTC's book-entry system has been obtained from
sources that the Authority and the District believe to be reliable, but the Authority and the District take no
responsibility for the accuracy thereof.
Discontinuance ofDTC Services
In the event that (a) DTC determines not to continue to act as securities depository for the 2006 Bonds,
or (b) the Authority determines that DTC shall no longer act and delivers a written certificate to the Fiscal Agent
to that effect, then the Authority will discontinue the Book-Entry System with DTC for the 2006 Bonds. If the
Authority determines to replace DTC with another qualified securities depository, the Authority will prepare or
direct the preparation of a new single separate, fully registered Bond for each maturity of the 2006 Bonds
registered in the name of such successor or substitute securities depository as are not inconsistent with the terms
G-2
of the Fiscal Agent Agreement. If the Authority fails to identify another qualified securities depository to replace
the incumbent securities depository for the 2006 Bonds, then the 2006 Bonds shall no longer be restricted to
being registered in the 2006 Bond registration books in the name of the incumbent securities depository or its
nominee, but shall be registered in whatever name or names the incumbent securities depository or its nominee
transferring or exchanging the 2006 Bonds shall designate.
In the event that the Book-Entry System is discontinued, the following provisions would also apply: (i)
the 2006 Bonds will be made available in physical form, (ii) principal of, and redemption premiums if any, on
the 2006 Bonds will be payable upon surrender thereof at the trust office of the Fiscal Agent identified in the
Fiscal Agent Agreement, and (iii)the 2006 Bonds will be transferable and exchangeable as provided in the Fiscal
Agent Agreement.
The Authority. the District and the Fiscal Agent do not have any responsibility or obligation to DTC
Participants. to the persons for whom they act as nominees. to Beneficial Owners. or to any other person who
is not shown on the registration books as being an owner of the 2006 Bonds, with respect to (i! the accuracy of
any records maintained by DTC or any DTC Participants; (ii! the payment by DTC or any DTC Participant of
any amount in respect of the principal of redemption price of or interest on the 2006 Bonds; (iii! the delivery
of any notice which is permitted or required to be given to registered owners under theFiscalAgentAgreement;
(iv) the selection by DTC or any DTC Participant of any person to receive payment in the event of a partial
redemption of the 2006 Bonds; (v) any consent given or other action taken by DTC as registered owner; or (vi!
any other matter arising with respect to the 2006 Bonds or the Fiscal Agent Agreement. The Authority. the
District and the Fiscal Agent cannot and do not give any assurances that DTC, DTC Participants or others will
distribute payments of principal of or interest on the 2006 Bonds paid to DTC or its nominee, as the registered
(]limer, or any notices to the Beneficial Owners or that they will c/oso on a timely basis or will serve and act in
a manner described in this Official Statement. The Authority, the District and the Fiscal Agent are not
responsible or liablefor the failure ofDTC or any DTC Participant to make any payment or give any notice to
a Beneficial Owner in respect to the 2006 Bonds or any error or delay relating thereto.
G-3
APPENDIX H
SPECIMEN MUNICIPAL BOND INSllRANCE POLICY
H-l
APPENDIX I
BOUNDARY MAP
1-1
[THIS PAGE INTENTI< lNALL Y LEFT BLANK]
TEMECULA PUBLIC FINANCING AUTHORITY
COMMUNITY FACILITIES DISTRICT NO. 01-2
(HARVESTON)
2006 SPECIAL TAX REFUNDING BONDS, SERIES A
2006 SPECIAL TAX REFUNDING BOND, SUBORDINATE SERIES B
CONTINUING DISCLOSURE AGREEMENT
APPENDIX F
FORM OF DISTRICT CONTINUING DISCLOSURE AGREEMENT
This CONTINUING DISCLOSURE AGREEMENT (the "Disclosure Agreement") is executed and
entered into as of September 1, 2006, by and between U.S. Bank National Association, a national banking
association organized and existing under and by virtue of the laws of the United States of America (the
"Bank"), in its capacity as Dissemination Agent (the "Dissemination Agent") and in its capacity as Fiscal
Agent (the "Fiscal Agent"), and the Temecula Public Financing Authority, a joint exercise of powers
authority organized and existing under and by virtue of the Constitution and of the laws of the State of
California (the "Authority"), for and on behalf of the Temecula Public Financing Authority Community
Facilities District No. 01-2 (Harveston) (the "District");
WITNESSETH:
WHEREAS, pursuant to the Fiscal Agent Agreement, dated September 1, 2006 (the "Fiscal Agent
Agreement"), by and between the Authority and the Fiscal Agent, for and on behalf of the District, and the
Fiscal Agent, the Authority has issued its 2006 Special Tax Refunding Bonds, Series A, in the aggregate
principal amount of $ (the "Series A Bonds") and its 2006 Special Tax Refunding Bonds,
Subordinate Series B, in the aggregate principal amount of$ (the "Series B Bonds," collectively,
the "2006 Bonds"); and
WHEREAS, this Disclosure Agreement is being executed and delivered by the Authority and the
Fiscal Agent for the benefit of the owners and beneficial owners ofthe 2006 Bonds and in order to assist the
underwriter of the 2006 Bonds in complying with Securities and Exchange Commission Rule 15c2-12(b )(5);
NOW, THEREFORE, for and in consideration of the mutual premises and covenants herein
contained, the parties hereto agree as follows:
Section 1. Definition. Capitalized undefined terms used herein shall have the meanings ascribed
thereto in the Fiscal Agent Agreement. In addition, the following capitalized terms shall have the following
meanIngs:
"Annual Report" shall mean any Annual Report provided by the Authority pursuant to, and
described in, Sections 2 and 3 of this Disclosure Agreement.
"Annual Report Date" shall mean the date in each year that is eight months after the end of the
Authority's fiscal year, which date, as of the date of this Disclosure Agreement, is March 1.
"Disclosure Representative" shall mean the Finance Director of the City ofTemecula, as Treasurer
of the Authority, or his or her designee, or such other office or employee as the Authority shall designate in
writing to the Fiscal Agent from time to time.
"Dissemination Agent" shall mean U.S. Bank National Association, acting in its capacity as
Dissemination Agent hereunder, or any successor Dissemination Agent designated in writing by the
Authority and which has filed with the Fiscal Agent a written acceptance of such designation.
"Listed Events" shall mean any of the events listed in Section 4(a) of this Disclosure Agreement.
F-l
"National Repository" shall mean any Nationally Recognized Municipal Securities Information
Repository for purposes of the Rule. Information on the National Repositories as of a particular date is
available on the Internet at www.sec.gov/info/municipallnrmsir.htm.
'X lfficial Statement" shall mean the (lfficial Statement, dated
2006 Bonds.
, 2006, relating to the
"Participating Underwriter" shall mean Stone & Youngberg LLC.
"Repository" shall mean each National Repository and each State Repository.
"Rule" shall mean Rule 15c2-12(b)(5) adopted by the Securities and Exchange Commission under
the Securities Exchange Act of 1934, as the same may be amended from time to time.
"State Repository" shall mean any public or private repository or entity designated by the State of
California as a state repository for the purpose of the Rule and recognized as such by the Securities and
Exchange Commission. As of the date of this Disclosure Agreement, there is no State Repository.
Section 2. ITml1~1()n of Annll:ll Ren()ft~
(a) The Authority shall, or, upon furnishing the Annual Report to the Dissemination
Agent, shall cause the Dissemination Agent to, provide to each Repository, to the Fiscal Agent and
to the Participating Underwriter an Annual Report which is consistent with the requirements of
Section 3 of the Disclosure Agreement, not later than the Annual Report Date, commencing with the
report for the 2005-06 fiscal year. The Annual Report may be submitted as a single document or as
separate documents comprising a package, and may include by reference other information as
provided in Section 3 of this Disclosure Agreement; provided, however, that the audited financial
statements of the Authority, if any, may be submitted separately from the balance of the Annual
Report, and later than the date required above for the filing of the Annual Report if not available by
that date. If the Authority's fiscal year changes, it shall give notice of such change in the same
manner as for a Listed Event under Section 4(f).
(b) Not later than fifteen (15) Business Days prior to the date specified in subsection
(a) for providing the Annual Report to Repositories, the Authority shall provide the Annual Report
(in a form suitable for reporting to the Repositories) to the Dissemination Agent, the Fiscal Agent
(if the Fiscal Agent is not the Dissemination Agent) and the Participating Underwriter. If by such
date, the Fiscal Agent has not received a copy of the Annual Report, the Fiscal Agent shall contact
the Disclosure Representative and the Dissemination Agent to inquire if the Authority is in
compliance with the first sentence of this subsection (b). The Authority shall provide a written
certification with each Annual Report furnished to the Dissemination Agent to the effect that such
Annual Report constitutes the Annual Report required to be furnished by it hereunder. The
Dissemination Agent may conclusively rely upon such certification of the Authority and shall have
no duty or obligation to review such Annual Report.
(c) If the Fiscal Agent is unable to verify that an Annual Report has been provided to
Repositories by the date required in subsection (a), the Fiscal Agent shall send a notice to the
Repositories and the appropriate State Repository, if any, in substantially the form attached as
Exhibit A. The Annual Report may be provided in electronic format to each Repository and the
Participating Underwriter and may be provided through the services of a "central post office"
approved by the Securities and Exchange Commission. For example, any filing under this
F-2
Continuing Disclosure Agreement may be made solely by transmitting such filing to the Texas
Municipal Advisory Council (the "MAC") as provided at http://www.disclosureusa.org unless the
United States Securities and Exchange Commission has withdrawn the interpretive advice in its
letter to the MAC dated September 7, 2004.
(d) The Dissemination Agent shall:
(i) determine each year prior to the date for providing the Annual Report the name
and address of each National Repository and each State Repository, if any; and
(ii) file a report with the Authority, the Participating Underwriter and (if the
Dissemination Agent is not the Fiscal Agent) the Fiscal Agent certifying that the Annual
Report has been provided pursuant to this Disclosure Agreement, stating the date it was
provided and listing all the Repositories to which it was provided.
Section 3. Content of Annual Renorts. The Authority's Annual Report shall contain or incorporate
by reference the following; provided, however, that for the first Annual Report due with respect to Fiscal
Year 2005-06, provision of the items referenced in clause (b) maybe satisfied by providing a copy of the
(lfficial Statement relating to the 2006 Bonds:
(a) The Authority's audited financial statements, if any, prepared in accordance with
generally accepted accounting principles as promulgated to apply to govemment entities from time
to time by the Governmental Accounting Standards Board. If the Authority's audited financial
statements, if any, are not available by the time the Annual Report is required to be filed pursuant
to Section 2( a), the Annual Report shall contain unaudited financial statements in a format similar
to that used for the Authority's audited financial statements, and the audited financial statements,
if any, shall be filed in the same manner as the Annual Report when they become available. If the
Authority's audited financial statements, if any, or unaudited financial statements are already filed,
the Annual Report may reference that such financial statements are on file with the Repositories.
For purposes of this Section 3( a), if audited financial statements of the Authority are not prepared,
the Authority shall include or incorporate by reference the audited financial statements of the City
of Temecula and such inclusion or incorporation shall be deemed to satisfy the requirement to
provide audited financial statements of the Authority.
(b) The following information:
(i) The principal amount of 2006 Bonds and parity bonds, if any, outstanding as
of September 30 next preceding the date of the Annual Report Date.
(ii) The balance in the Reserve Fund, if any, and a statement of the Reserve
Requirementas of the September 30 next preceding the Annual Report Date and the balance
in the other funds and accounts held under the Fiscal Agent Agreement.
(iii) Information regarding the amount of the annual special taxes levied in the
District by the Rate and Method of Apportionment of Special Tax land use categories, the
names of the owners of property responsible for more than 5% of the Special Tax levy and
the amount of Special Tax owed, as shown on such assessment roll of the Riverside County
Assessor last equalized prior to the September 30 next preceding the Annual Report Date.
F-3
(iv) The total assessed value of all parcels within the District on which the Special
Taxes are levied, as shown on the assessment roll of the Riverside County Assessor last
equalized prior to the September 30 next preceding the Annual Report Date, and a statement
of assessed value for the property in the District by Rate and Method of Apportionment of
Special Tax land use categories.
(v) The Special Tax delinquency rate for all parcels within the District on which
the Special Taxes are levied, as shown on the assessment roll of the Riverside County
Assessor last equalized prior to the September 30 next preceding the Annual Report Date,
the number of parcels within the District on which the Special Taxes are levied and which
are delinquent in payment of Special Taxes based on parcels, as shown on the assessment
roll on the Riverside County Assessor last equalized prior to the September 30 next
preceding the Annual Report Date, the amount of each delinquency, the length of time
delinquent and the date on which foreclosure was commenced, or similar information
pertaining to delinquencies deemed appropriate by the District; provided. however, that
parcels with aggregate delinquencies of$5,000 or less (excluding penalties and interest) may
be grouped together and such information may be provided by category.
(vi) The status of foreclosure proceedings for any parcels within the District on
which the Special Taxes are levied and a summary ofthe results of any foreclosure sales as
of the September 30 next preceding the Annual Report Date.
(vii) The identity of any property owner representing more than five percent (5%)
of the annual Special Tax levy who is delinquent in payment of such Special Taxes, as
shown on such assessment roll ofthe Riverside County Assessor last equalized prior to the
September 30 next preceding the Annual Report Date.
(viii) A summary of (a) zoning changes, if any, approved by the City of Temecula
(the "City") for property subject to the Special Tax in the District and (b) building permits
issued by the City for property subject to the Special Tax in the District.
(c) In addition to any of the information expressly required to be provided under
paragraphs (a) and (b) of this Section, the Authority shall provide such further information, if any,
as may be necessary to make the required statements, in the light of the circumstances under which
they are made, not misleading.
Any or all of the items listed above may be included by specific reference to other
documents, including official statements of debt issues of the Authority or related public entities,
which have been submitted to each of the Repositories or the Securities and Exchange Commission.
If the document included by reference is a final official statement, it must be available from the
Municipal Securities Rulemaking Board. The District shall clearly identify each such other
document so included by reference. A form of information cover sheet for municipal secondary
market disclosure recommended by the Municipal Securities Rulemaking Board is attached as
Exhibit B.
F-4
Section 4. ~rtln? of ~i,onlflr.:mt F~l~nt~,
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F-5
(a) Pursuant to the provisions of this Section 4, the Authority shall give, or cause to be
given, notice of the occurrence of any of the following events with respect to the 2006 Bonds, if
material:
(i) Principal and interest payment delinquencies;
(ii) Non-payment related defaults;
(iii) Unscheduled draws on debt service reserves reflecting financial difficulties;
(iv) Unscheduled draws on credit enhancements reflecting financial difficulties;
(v) Substitution of credit or liquidity providers, or their failure to perform;
(vi) Adverse tax opinions or events affecting the tax-exempt status of the security;
(vii) Modifications to rights of security holders;
(viii) Contingent or unscheduled bond calls;
(ix) Defeasances;
(x) Release, substitution, orsale of property securing repayment of the securities;
(xi) Rating changes; and
(xii) Receipt by the Authority of notice that a credit on liquidity facility will not
be renewed, replaced or extended.
(b) The Fiscal Agent shall, within five (5) business days of obtaining actual knowledge
of the occurrence of any of the Listed Events, contact the Disclosure Representative, inform such
person of the event, and request that the Authority promptly notify the Dissemination Agent in
writing whether or not to report the event pursuant to subsection (f), provided. however, that the
Dissemination Agent shall have no liability to Bond Owners for any failure to provide such notice.
For purposes of this Disclosure Agreement, "actual knowledge" of the occurrence of the Listed
Events described under clauses (ii), (iii), (vi), (x) and (xi) above shall mean actual knowledge by an
officer at the corporate trust office of the Fiscal Agent. The Fiscal Agent shall have no responsibility
for determining the materiality of any of the Listed Events.
(c) Whenever the Authority obtains knowledge of the occurrence of a Listed Event,
whether because of a notice from the Fiscal Agent pursuant to subsection (b) or otherwise, the
Authority shall as soon as possible determine if such event would be material under applicable
federal securities law.
(d) If the Authority determines that knowledge of the occurrence of a Listed Event
would be material under applicable federal securities law, the Authority shall promptly notify the
Dissemination Agent in writing. Such notice shall instruct the Dissemination Agent to report the
occurrence pursuant to subsection (f). The Authority shall provide the Dissemination Agent with
F-6
a form of notice of such event in a format suitable for reporting to the Municipal Securities
Rulemaking Board and each State Repository, if any.
(e) If in response to a request under subsection (b), the Authority determines that the
Listed Event would not be material under applicable Federal securities law, the Authority shall so
notify the Dissemination Agent in writing and instruct the Dissemination Agent not to report the
occurrence pursuant to subsection (f).
(f) If the Dissemination Agent has been instructed by the Authority to report the
occurrence of a Listed Event, the Dissemination Agent shall file a notice of such occurrence with
the Municipal Securities Rulemaking Board and each State Repository and shall provide a copy of
such notice to each Participating Underwriter, as listed in Section 12. Notwithstanding the
foregoing, notice of Listed Events described in subsections (a)(viii) and (ix) need not be given under
this subsection any earlier than the notice (if any) of the underlying event is given to owners of
affected 2006 Bonds pursuant to the Fiscal Agent Agreement.
Section 5. Termination of Renortina Ohliaation. All of the Authority's obligations under this
Disclosure Agreement shall terminate upon the earliest to occur of (i) the legal defeasance of the 2006 Bonds,
(ii) prior redemption ofthe 2006 Bonds or (iii) payment in full of all the 2006 Bonds. If such determination
occurs prior to the final maturity of the 2006 Bonds, the Authority shall give notice of such termination in
the same manner as for a Listed Event under Section 4(f).
Section 6. T)i""",ination Aaent The Authority may, from time to time, appoint or engage a
Dissemination Agent to assist in carrying out its obligations under this Disclosure Agreement, and may
discharge any such Dissemination Agent, with or without appointing a successor Dissemination Agent. The
initial Dissemination Agent shall be U.S. Bank National Association. The Dissemination Agent may resign
by providing forty-five (45) days' written notice to the Authority and the Fiscal Agent (if the Fiscal Agent
is not the Dissemination Agent). The Dissemination Agent shall have no duty to prepare the Annual Report
nor shall the Dissemination Agent be responsible for filing any Annual Report not provided to it by the
Authority in a timely manner and in a form suitable for filing. If at any time there is not any other designated
Dissemination Agent, the Fiscal Agent shall be the Dissemination Agent.
Section 7. ilmRnrlmRnt. W";vp.r Notwithstanding any other provision of this Disclosure
Agreement, the Authority, the Fiscal Agent and the Dissemination Agent may amend this Disclosure
Agreement (and the Fiscal Agent and the Dissemination Agent shall agree to any amendment so requested
by the Authority, so long as such amendment does not adversely affect the rights or obligations of the Fiscal
Agent or the Dissemination Agent), and any provision of this Disclosure Agreement may be waived,
provided that the following conditions are satisfied:
(a) if the amendment or waiver relates to the provisions of Sections 2(a), 3 or 4(a), it
may only be made in connection with a change in circumstances that arises from a change in legal
requirements, change in law, or change in the identity, nature, or status of an obligated person with
respect to the 2006 Bonds, or type of business conducted;
(b) the undertakings herein, as proposed to be amended orwaived, would, in the opinion
of nationally recognized bond counsel, have complied with the requirements ofthe Rule at the time
of the primary offering of the 2006 Bonds, after taking into account any amendments or
interpretations of the Rule, as well as any change in circumstances; and
F-7
(c) the proposed amendment or waiver either (i) is approved by owners of a majority
of the owners of the 2006 Bonds affected thereby in the manner provided in the Fiscal Agent
Agreement for amendments to the Fiscal Agent Agreement with the consent of owners, or (ii) does
not, in the opinion of nationally recognized bond counsel, materially impair the interests of the
owners or beneficial owners of the 2006 Bonds.
If the annual financial information or operating data to be provided in the Annual Report is amended
pursuant to the provisions hereof, the first annual financial information containing the amended operating
data or financial information shall explain, in narrative form, the reasons for the amendment and the impact
of the change in the type of operating data or financial information being provided.
If an amendment is made to the undertaking specifying the accounting principles to be followed in
preparing financial statements, the annual financial information for the year in which the change is made
shall present a comparison between the financial statements or information prepared on the basis of the new
accounting principles and those prepared on the basis of the former accounting principles. The comparison
shall include a qualitative discussion of the differences in the accounting principles and the impact of the
change in the accounting principles on the presentation of the financial information in order to provide
information to investors to enable them to evaluate the ability of the Authority to meet its obligations,
including its obligation to pay debt service on the 2006 Bonds. To the extent reasonably feasible, the
comparison shall be quantitative. A notice of the change in the accounting principles shall be sent to the
Repositories in the same manner as for a Listed Event under Section 4(f).
Section 8. Additional Information. Nothing in this Disclosure Agreement shall be deemed to
prevent the Authority from disseminating any other information, using the means of dissemination set forth
in this Disclosure Agreement or any other means of communication, or including any other information in
any Annual Report or notice of occurrence of a Listed Event, in addition to that which is required by this
Disclosure Agreement. If the Authority chooses to include any information in any Annual Report or notice
of occurrence of a Listed Event, in addition to that which is specifically required by this Disclosure
Agreement, the Authority shall have no obligation under this Disclosure Agreement to update such
information or include it in any future Annual Report or notice of occurrence of a Listed Event.
Section 9. Default. In the event of a failure of the Authority, the Dissemination Agent or the Fiscal
Agent to comply with any provision of this Disclosure Agreement, the Fiscal Agent may (and, at the written
direction of any Participating Underwriter or the owners of at least 25% aggregate principal amount of
(lutstanding2006 Bonds, shall, upon receipt of indemnification reasonably satisfactory to the Fiscal Agent),
or any owner or beneficial owner of the 2006 Bonds may, take such actions as may be necessary and
appropriate, including seeking mandate or specific performance by court order, to cause the Authority, the
Dissemination Agent or the Fiscal Agent, as the case may be, to comply with its obligations under this
Disclosure Agreement. A default under this Disclosure Agreement shall not be deemed an Event of Default
under the Fiscal Agent Agreement, and the sole remedy under this Disclosure Agreement in the event of any
failure of the Authority, the Dissemination Agent or the Fiscal Agent to comply with this Disclosure
Agreement shall be an action to compel performance.
Section 10. Duties_ Immunities and I,iahilities of Fiscal Agent and Dissemination Agent.
Section 7.0 1 and Section 7.02 of the Fiscal Agent Agreement are hereby made applicable to this Disclosure
Agreement as if this Disclosure Agreement were (solely for this purpose) contained in the Fiscal Agent
Agreement, and the Fiscal Agent and the Dissemination Agent shall be entitled to the protections, limitations
F-8
from liability and indemnities afforded to the Fiscal Agent thereunder. The Dissemination Agent and the
Fiscal Agent shall have only such duties hereunder as are specifically set forth in this Disclosure Agreement.
This Disclosure Agreement does not apply to any other securities issued or to be issued by the Authority.
The Dissemination Agent shall have no obligation to make any disclosure concerning the 2006 Bonds, the
Authority or any other matter except as expressly set out herein, provided that no provision of this Disclosure
Agreement shall limit the duties or obligations of the Fiscal Agent under the Fiscal Agent Agreement. The
Dissemination Agent shall have no responsibility for the preparation, review, form or content of any Annual
Report or any notice of a Listed Event. The fact that the Fiscal Agent has or may have any banking, fiduciary
or other relationship with the District or any other party, apart from the relationship created by the Fiscal
Agent Agreement and this Disclosure Agreement, shall not be construed to mean that the Fiscal Agent has
knowledge or notice of any event or condition relating to the 2006 Bonds or the District except in its
respective capacities under such agreements. No provision of this Disclosure Agreement shall require or be
construed to require the Dissemination Agent to interpret or provide an opinion concerning any information
disclosed hereunder. Information disclosed hereunder by the Dissemination Agent may contain such
disclaimer langnage conceming the Dissemination Agent's responsibilities hereunder with respect thereto
as the Dissemination Agent may deem appropriate. The Dissemination Agent may conclusively rely on the
determination of the District as to the materiality of any event for purposes of Section 4 hereof. Neither the
Fiscal Agent nor the Dissemination Agent make any representation as to the sufficiency of this Disclosure
Agreement for purposes of the Rule. The Dissemination Agent shall be paid compensation by the District
for its services provided hereunder in accordance with its schedule of fees, as amended from time to time,
and all expenses, legal fees and advances made or incurred by the Dissemination in the performance of its
duties hereunder. The District's obligations under this Section 10 shall survive the termination of this
Disclosure Agreement.
Section 11. Reneficiarie, The Participating Underwriter and the owners and beneficial owners
from time to time of the 2006Bonds shall be third party beneficiaries under this Disclosure Agreement. This
Disclosure Agreement shall inure solely to the benefit of the District, the Fiscal Agent, the Dissemination
Agent, the Participating Underwriter and owners and beneficial owners from time to time of the 2006 Bonds,
and shall create no rights in any other person or entity.
Section 12. Nnl;CR' Any notice or communications herein required or permitted to be given to the
Authority, the Fiscal Agent or the Dissemination Agent shall be in writing and shall be deemed to have been
sufficiently given or served for all purposes by being delivered or sent by telecopy or by being deposited,
postage prepaid, in a post office letter box, to the addresses set forth below, or to such other address as may
be provided to the other parties hereinafter listed in writing from time to time, namely:
If to the Authority:
Temecula Public Financing Authority
43200 Business Park Drive
Temecula, California 92590
Attention: Director of Finance
Telephone: 951/694-6430
Telecopier: 951/694-6479
If to the Community
Facilities District:
Community Facilities District No. 01-2 (Harveston)
43200 Business Park Drive
Temecula, California 92590
F-9
If to the
Dissemination
Agent:
If to the
Fiscal Agent:
If to the
Participating
Underwriter:
Attention: Director of Finance
Telephone: 951/694-6430
Telecopier: 951/694-6479
u.s. Bank National Association
633 West Fifth Street, 24th Floor
LM-CA-T24T
Los Angeles, California 90071
Telephone: 213/615-6005
Telecopier: 213/615-6196
u.s. Bank National Association
633 West Fifth Street, 24th Floor
LM-CA-T24T
Los Angeles, California 90071
Telephone: 213/615-6005
Telecopier: 213/615-6196
Stone & Youngberg LLC
One Ferry Building
San Francisco, California 94111
Telephone: 415/445-2300
Telecopier: 415/445-2395
Attention: Municipal Research Department
Section 13. Future Detennl.!lJltl_()!l. ()f Ol)1_1_~,~.~~. pc::r~,0ns. In the event the Securities Exchange
Commission amends, clarifies or supplements the Rule in such a manner that requires any landowner within
the Authority to be an obligated person as defined in the Rule, nothing contained herein shall be construed
to require the Authority to meet the continuing disclosure requirements of the Rule with respect to such
obligated person and nothing in this Disclosure Agreement shall be deemed to obligate the Authority to
disclose information concerning any owner of land within the Authority except as required as part of the
information required to be disclosed by the Authority pursuant to Section 4 and Section 5 hereof.
Section 14. Severahilitv. In case anyone or more of the provisions contained herein shall for any
reason be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or
unenforceability shall not affect any other provision hereof.
Section 15. State of California Law Governs. The validity, interpretation and performance of this
Disclosure Agreement shall be governed by the laws of the State of California.
Section 16. f'onnternart.. This Disclosure Agreement may be executed in several counterparts,
each of which shall be an original and all of which shall constitute but one and the same instrument.
Section 1 7. Memer. Any person succeeding to all or substantially all of the Dissemination Agent's
corporate trust business shall be the successor Dissemination Agent without the filing of any paper or any
further act.
F-1O
F-11
IN WITNESS WHEREOF, the parties hereto have executed this Disclosure Agreement as of the
date first above written.
TEMEClTLA PUBLIC FINANCING AUTH< lRITY,
FOR AND ON BEHALF OF TEMEClTLA PUBLIC
FINANCING AUTHORITY COMMUNITY
FACILITIES DISTRICT NO. 01-2 (HARVESTON)
By:
Authorized Officer
U.S. BANK NATIONAL ASSOCIATION,
as Fiscal Agent
By:
Authorized Officer
U.S. BANK NATIONAL ASSOCIATION,
as Dissemination Agent
By:
Authorized Officer
F-12
EXHIBIT A
NOTICE TO MUNICIPAL SECURITIES RULEMAKING BOARD
OF FAILlTRE TO FILE ANNUAL REPORT
Name ofIssuer:
Temecula Public Financing Authority, for and on behalf of Temecula Public
Financing Authority, Community Facilities District No. 01-2 (Harveston)
Name of Bond Issue:
Temecula Public Financing Authority Community Facilities District No. 01-2
(Harveston) 2006 Special Tax Refunding Bonds, Series A and 2006 Special Tax
Refunding Bonds, Subordinate Series B
Date ofIssuance:
,2006
NOTICE IS HEREBY GIVEN that the Temecula Public Financing Authority (the "Authority") has
not provided an Annual Report with respect to the above-named 2006 Bonds as required by the Continuing
Disclosure Agreement, dated as of September 1, 2006, by and between U. S. Bank National Association, in
its capacity as Fiscal Agent, and in its capacity as Dissemination Agent, and the Authority. [The Authority
anticipates that the Annual Report will be filed by .]
Dated:
,2006
U.S. BANK NATIONAL ASSOCIATION, as Fiscal
Agent, on behalf of the Temecula Public Financing
Authority
Authorized Officer
cc: Temecula Public Financing Authority
Stone & Youngberg LLC
F-13
EXHIBIT B
Municipal Secondary Market Disclosure
Information Cover Sheet
This cover sheet should be sent with all submissions made to the Municipal Securities Rulemaking Board, Nationally
Recognized Municipal Securities Information Repositories, and any applicable State Information Depository, whether the
filing is voluntary or made pursuant to Securities and Exchange Commission Rule 15c2-12 or any analogous state statute.
See www.sec.gov/info/municipal/nrmsir.htm for list of current NRM:SIRs and Sills
IF THIS FILING RELATES TO A SINGLE BOND ISSUE:
Provide name ofbonu issue exactly as it appears on the cover of the ()fficial Statement
(please include name of state where Issuer is located):
$
TEMECULA PUBLIC FINANCING AUTHORITY
COMMUNITY FACILITIES DISTRICT NO. 01-2 (HARVEST ON)
2006 SPECIAL TA.X REFUNDING BONDS, SERIES A
(California)
Provide nine-digit CUSIP@numbers'ifavailable, to which the information relates:
$
TEMECULA PUBLIC FINANCING AUTHORITY
COMMUNITY FACILITIES DISTRICT NO. 01-2 (HARVEST ON)
2006 SPECIAL TA.X REFUNDING BONDS, SUBORDINATE SERIES B
(c:ALIFORNIA)
PROVIDE NINE-DIGIT \:USIP@NUMBERS'IF AVAILABLE, TO WHICH THE INFORMATION RELA illS:
F-14
IF THIS FILING RELATES TO ALL SECURITIES ISSUED BY THE ISSUER OR ALL SECURITIES
OF A SPECIFIC CREDIT OR ISSUED UNDER A SINGLE INDENTURE:
OTHEROBLIGATEDI'ERSON'S NAME (IF ANY):
ISSUER'S NAME (PLEASE INCLUDE NAME OF STATE WHERE ISSUER IS LOCATED)
(EXACTLY AS IT APPEARS ON THE OFFICIAL STATEMENT \:OVER)
PROVIDE SIX- DIGIT CUSIpoo NUMBER( S) " IF AVAILABLE, OF ISSUER.
* ((:'ONTACT rUSIP's<1> MUNICIPAL DISCLOSURE ASSISTANCE LINE AT 212.438.6518 FOR ASSISTANCE \VITH OBTAINING lHE PROPER rUSIp<1>
NUMBERS.)
TYPE OF FILING:
D ELEC1RONIC (NUMBER OF PAGES ATTACHED)
IF INFORMATION IS ALSO AVAILABLE ON THE INTERNET, GIVEllRL
D PAPER (NUMBER OF PAGES ATTACHED)
WHAT TYPE OF INFORMATION ARE YOU PROVIDING? (CHECK ALL THAT APPL V)
A. D ANNUAL FINANCIAL INFORMATION AND OPERATING DATA PURSUANT TO RULE 15c2-12
(FlNANCIAL INFORMATION AND OPERATING DATA SHOULD NOT BE FILED WITH THE MSRB.)
FISCAL PERIOD COVERED:
B. D AUDITED FINANCIAL STATEMENTS OR CAFRpURSUANT TO RULE 15c2-12
FISCAL PERIOD COVERED:
C. D NOTICE OF A MATERIAL EvENT PURSUANT TO RULE 15c2-12 (c:HECK AS APPROPRIATE)
2.
D PRINCIPAL AND INTEREST PAYMENT 6.
DELINQUENCIES
D NON-P A YMENT RELATED DEFAULTS 7
3
D UNSCHEDULED DRAWS ON DEBT SERVICE R.
RESERVES REFLECTING FINANCIAL DIFFICULTIES
D UNSCHEDULED DRAWS ON CREDIT ENHANCEMENTS 9
REFLECTING FINANCIAL DIFFICULTIES
D SUBSTITUTION OF CREDIT OR LIQUIDITY ]II
PROVIDERS- OR THEIR FAILURE TO PERFORM
4.
5
D ADVERSE TAX OPINIONS OR EVENTS AFFECTING
THE TAX-EXEMPT STATUS OF THE SECURITY
D MODIFICATIONS TO THE RIGHTS OF SECURITY
HOLDERS
D BOND CALLS
D DEFEASANCES
D RELEASE, SUBSTITUTION, OR SALE OF PROPERTY
SECURING
REPAYMENT OF THE SECURITIES
11 D RATING CHANGES
D. D NOTICE OF FAILURE TO PROVIDE ANNUAL FINANCIAL INFORMATION AS REQUIRED
E. D OTHER SECONDARY MARKET INFORMATION (SPECIFY):
F-15
I HEREBY REPRESENT 1HA T I AM AUTHORIZED BY THE ISSUER OR OBLIGOR OR ITS AGENT TO DISTRIBUTE lHIS
INFORMA TION PUBLICLY:
IsSUER CONTACT:
NAME
EMPLOYER
ADDRESS
TELEPHONE
EMAILADDRESS
TITLE
OTY STATE
FAX
I SSUER WEB SITE ADDRESS
ZIP \:ODE
DISSEMINATION AGENT CONTACT, IF ANY:
NAME
EMPLOYER
ADDRESS
TELEPHONE
EMAILADDRESS
TITLE
OTY STATE
F,,",
RELATIONSHIP TO ISSUER
ZIP \:ODE
OBLIGOR CONTACT, IF ANY:
NAME
EMPLOYER
ADDRESS
TELEPHONE
EMAILADDRESS
TITLE
OTY STATE
FAX
()BLIGOR WEB SITE ADDRESS
ZIP \:ODE
INvESTOR RELATIONS CONTACT, IF ANY:
NAME
TELEPHONE
TITLE
EMAIL ADDRESS
F-16
PUBLIC HEARING
Ii
-
I.
ITEM NO. 15
I
I
Approvals
City Attorney
Director of Finance
City Manager
)#f"
11/2
~
CITY OF TEMECULA
AGENDA REPORT
TO:
City Manager/City Council
FROM:
Debbie Ubnoske, Director of Planning
DATE:
July 11, 2006
SUBJECT:
Appeal of Planning Commission Denial of Planning Application No. PA05-0314 for
a Minor Conditional Use Permit and Public Convenience or Necessity findings to
sell alcohol within a 16,836 square foot retail facility (Rite Aid) to be located within
the Rancho Temecula Town Center
PREPARED BY:
Cheryl Kitzerow, Associate Planner
RECOMMENDATION: Should the City Council wish to deny Planning Application No. PA05-
0314, a Minor Conditional Use Permit and Public Convenience or Necessity Findings, the City
Council should:
1. Adopt a resolution entitled:
RESOLUTION NO. 06-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
TEMECULA DENYING PLANNING APPLICATION NO. PA05'{)314,
A MINOR CONDITIONAL USE PERMIT AND PUBLIC
CONVENIENCE OR NECESSITY FINDINGS TO ALLOW FOR THE
SALE OF BEER, WINE, AND DISTILLED SPIRITS (TYPE 21
LICENSE, OFF-SALE GENERAL) FROM AN APPROVED 16,836
SQUARE FOOT COMMERCIAL BUILDING TO BE LOCATED
WITHIN THE RANCHO TEMECULA TOWN CENTER
Or,
Should the City Council wish to approve Planning Application No.
PA05-0314, a Minor Conditional Use Permit and Public Convenience or Necessity Findings, the City
Council should:
1. Adopt a resolution entitled:
RESOLUTION NO. 06-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
TEMECULA APPROVING PLANNING APPLICATION NO. PA05-
0314, A MINOR CONDITIONAL USE PERMIT AND PUBLIC
CONVENIENCE OR NECESSITY FINDINGS TO ALLOW FOR THE
SALE OF BEER, WINE, AND DISTILLED SPIRITS (TYPE 21
LICENSE, OFF-SALE GENERAL) FROM AN APPROVED 16,836
SQUARE FOOT COMMERCIAL BUILDING TO BE LOCATED
WITHIN THE RANCHO TEMECULA TOWN CENTER
BACKGROUND: On October 25, 2005, Thrifty-Payless I ncorporated (Rite Aid) applied
for a Minor Conditional Use Permit and Findings of Public Convenience or Necessity to sell beer,
wine and distilled spirits for off site consumption (Type 21 license). The project site is within the
Rancho Temecula Town Center (approved by the City Council on November23, 2004). This project
approval included a condition requiring a Conditional Use Permit for all future tenants within the
center proposing alcohol sales. The subject application for Rite Aid was reviewed by the Planning
Commission on April 19, 2006 and was denied 4-1. Commissioners Carey, Chiniaeff, Guerriero and
Harter voted to deny the application. Commissioner Telesio voted to support the application. On
May 3, 2006 the applicant filed an appeal requesting that the City Council overturn the Planning
Commission denial.
DISCUSSION: The staff report to the Planning Commission recommended approval
of the Minor Conditional Use Permit and the findings of Public Convenience or Necessity for the
proposed project. The Planning Commission voted to deny the project 4-1 as mentioned above.
The applicant spoke in favor of the project. There were no other comments from the general public
for or against the project.
The Planning Commission discussion focused on the proximity of the proposed alcohol sales to
Chaparral High School. The Development Code states that any business selling beer or wine shall
be no closer than 500 feet from any public park, religious institution or school. Staff has verified that
the proposed use is not closer than 500 feet from any religious institution, school, or public park
based on the measurement criteria within Section 17.10.020 of the Development Code. The
nearest such use, Chaparral High School, is located approximately 700 feet southwest of the project
across Winchester Road.
Commissioner Chiniaeff believed that the proximity of the proposed use to the high school would
result in the corner of Winchester and Nicolas Roads becoming a hangout for teenagers. He stated
that the sale of alcohol across the street from any high school should not be permitted.
Commissioners Harter and Carey agreed with these concerns.
Commissioner Telesio commented that a distance of 500-feet would not be a deterrent for a minor
to try and purchase alcohol. His concern was to ensure that Rite Aid provided training to all staff
selling alcohol and ensure proper actions be taken should a violation occur.
Chairman Guerriero stated that the location of the proposed use was a concern to him, but that he
would be willing to consider approval, if the applicant would be willing to have the Alcohol Beverage
Control (ABC) perform extensive training for Rite Aid employees (to which the applicant agreed).
The Commission voted 4-1 to deny the request, and concluded that the Finding of Public
Convenience or Necessity could not be made because (1) the proposed use would not be
compatible in nature, condition, and development of adjacent land uses, (2) the proposed use would
have an adverse effect on adjacent land uses, and (3) the proposed use would result in an
excessive number of similar establishments in close proximity (census tract is considered over-
concentrated by the ABC - 8 Type 21 (off-sale general) licenses are allowed and a total of 11 are
currently authorized).
Aooellant's Position
The appellant requests the Council overturn the Planning Commission's denial and provides the
following comments: (1) the proposed Rite Aid store complies with the requirements of the City's
Development Code as the store is a permitted use within the zone (although a Conditional Use
Permit is required for the sale of alcohol) and is consistent with the General Plan, (2) the proposed
use is located over 500 feet (measured door to door) from any public park, religious institution, or
school, (3) the School District received public notice of the Commission hearing and did not contact
the City with any questions or concerns about the proposed business or request to sell alcohol, (4)
Rite Aid has an exemplary record in complying with state and local regulations regarding the sale of
alcohol, and (5) the Planning Commission previously approved a Finding of Public Convenience or
Necessity for a Beverages & More store located within the same shopping center.
Environmental Review
In accordance with the California Environmental Quality Act, the proposed Project has been deemed
to be categorically exempt from further environmental review per Section 15301, Existing Facilities.
A Notice of Exemption will be filed.
FISCAL IMPACT:
N/A
ATTACHMENTS:
CC Resolution No. 06-_
CC Resolution No. 06-_
Appeal Justification Letter
Excerptfrom Planning Commission Minutes (April 19, 2006)
Planning Commission Staff Report of April 19, 2006
RESOLUTION NO. 06-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF TEMECULA DENYING PLANNING APPLICATION NO.
PA05-0314, A MINOR CONDITIONAL USE PERMIT AND
PUBLIC CONVENIENCE OR NECESSITY FINDINGS TO
ALLOW FOR THE SALE OF BEER, WINE, AND
DISTILLED SPIRITS (TYPE 21 LICENSE, OFF-SALE
GENERAL) FROM AN APPROVED 16,836 SQUARE
FOOT COMMERCIAL BUILDING TO BE LOCATED
WITHIN THE RANCHO TEMECULA TOWN CENTER
THE CITY COUNCIL OF THE CITY OF TEMECULA DOES HEREBY RESOLVE
AS FOLLOWS:
Section 1. The City Council of the City of Temecula does hereby find,
determine and declare that:
A. Matthew Fagan Consulting Services filed Planning Application No. PA05-
0314, in a manner in accord with the City of Temecula General Plan and Development
Code. Planning Application No. PA05-0314 is an application for a minor cnoditional
use premit and Findings of Public Convenience or Necessisity to sell beer and wine at
the Rite Aid Drug Store in the Rancho Temecula Town Center.
B. Planning Application No. PA05-0314 was processed including, but not
limited to a public notice, in the time and manner prescribed by State and local law.
C. The Planning Commission, at a regular meeting, considered Planning
Application No. PA05-0314 on April 19, 2006, at a duly noticed public hearing as
prescribed by law, at which time the City staff and interested persons had an
opportunity to and did testify either in support or in opposition to this matter.
D. The Applicant filed a timely appeal of the Planning Commissions denial of
the Application.
E. The City Council, at a regular meeting, considered Planning Application
No. PA05-0314 on July 11, 2006 at a duly noticed hearing as prescribed by law, at
which time the City staff and interested persons had an opportunity to and did testify
either in support or in opposition to this matter.
Section 2. Findings. Based on the administrative record before the Council
and after due deliberation, the City Council hereby makes the following findings
concerning Planning Application No. PA05-0314 (Minor Conditional Use Permit and
Findings of Public Convenience or Necessity) as required by Section 17.04.01 O.E of the
Temecula Municipal Code:
Conditional Use Permit (Code Section 17.040.01 O.E\.
A. The proposed conditional use is not consistent with the General Plan and
the Development Code.
The proposed use is not consistent with the General Plan Land Use Element
(Community Commercial) and Zoning (Specific Plan-1) and the standards within
the Development Code. Although the location of the project exceeds the
minimum separation requirement of 500 feet from a religious institution, school,
or public park, the City Council finds and determine that the use is not compatible
with existing adjacent uses.
B. The proposed minor conditional use is not compatible with the nature,
condition and development of adjacent uses, buildings and structures and the proposed
minor conditional use will not adversely affect the adjacent uses, buildings or structures.
The proposed project is not compatible with the nature, condition and
development of adjacent uses, buildings, and structures because the proposed
project is in close proximity to a public high school because the project is in close
proximity to a public high school across the street and is located on a corner that
receives a high amount of foot traffic from adolescents before, during, and after
school hours.
C. The nature of the proposed minor conditional use is detrimental to the
health, safety and general welfare of the community.
The nature of the proposed use is detrimental to the health, safety and general
welfare of the community because the project is in close proximity to a public
high school across the street and is located on a corner that receives a high
amount of foot traffic from adolescents before, during, and after school hours.
Criteria to iustifv makina a findina of Public Convenience or Necessitv
A. Is the proposed use consistent with the General Plan and the
Development Code?
No. The proposed use is not consistent with the General Plan Land Use Element
(Community Commercial) and Zoning (Specific Plan-1)or the standards within the
Development Code. Although the location of the project exceeds the minimum
separation requirement of 500 feet from a religious institution, school, or public
park, the City Council finds and determine that the use is not compatible with
existing adjacent uses because the project is in close proximity to a public high
school across the street and is located on a corner that receives a high amount
of foot traffic from adolescents before, during, and after school hours.
B. Is the proposed use compatible with the nature, condition, and character
of adjacent land uses?
No. The proposed project is not compatible with the nature, condition and
development of adjacent uses, buildings, and structures because because the
project is in close proximity to a public high school across the street and is
located on a corner that receives a high amount of foot traffic from adolescents
before, during, and after school hours.
C. Will the proposed use have an adverse effect on adjacent land uses?
Yes. The site is in close proximity to a public high school across the street and is
located on corner that receives a high amount of foot traffic from adolescents
before, during, and after school hours.
D. Would the proposed use result in an excessive number of similar
establishments in close proximity?
Yes. Per information obtained from Alcohol Beverage Control, there are
currently a total of 11 Type 21 licenses authorized within Census Tract 0432.03
and a total of 8 are allowed before being considered over-concentrated by ABC.
Based on the information provided by ABC, it has been determined that the tract
is over-concentrated in Type 21 licenses.
Section 3. Environmental Comoliance. A Notice of Exemption for Planning
Application No. PA05-0314 was made per the California Environmental Quality Act
Guidelines Section 15301, Existing Facilities.
Section 4. Denial of Aoolication. That the City of Temecula City Council
hereby denies the Appeal and denies Planning Application PA05-0314 (Minor
Conditional Use Permit and Findings of Public Convenience or Necessity).
PASSED, APPROVED, AND ADOPTED by the City Council of the City of
Temecula this 11th day of July , 2006.
Ron Roberts, Mayor
ATTEST:
Susan W. Jones, MMC
City Clerk
[SEAL]
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss
CITY OF TEMECULA )
I, Susan W. Jones, MMC, City Clerk of the City of Temecula, do hereby certify that
the foregoing Resolution No. was duly and regularly adopted by the City Council of
the City of Temecula at a meeting thereof held on the 11 th day of July, 2006, by the
following vote:
AYES:
COUNCIL MEMBERS:
NOES:
COUNCIL MEMBERS:
ABSENT:
COUNCIL MEMBERS:
ABSTAIN:
COUNCIL MEMBERS:
Susan W. Jones, MMC
City Clerk
RESOLUTION NO. 06-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF TEMECULA APPROVING PLANNING APPLICATION
NO. PA05-0314, A MINOR CONDITIONAL USE PERMIT
AND PUBLIC CONVENIENCE OR NECESSITY FINDINGS
TO ALLOW FOR THE SALE OF BEER, WINE, AND
DISTILLED SPIRITS (TYPE 21 LICENSE, OFF-SALE
GENERAL) FROM AN APPROVED 16,836 SQUARE
FOOT COMMERCIAL BUILDING TO BE LOCATED
WITHIN THE RANCHO TEMECULA TOWN CENTER
THE CITY COUNCIL OF THE CITY OF TEMECULA DOES HEREBY RESOLVE
AS FOLLOWS:
Section 1. The City Council of the City of Temecula does hereby find,
determine and declare that:
A. Matthew Fagan Consulting Services filed Planning Application No. PA05-
0314, in a manner in accord with the City of Temecula General Plan and Development
Code.
B. Planning Application No. PA05-0314 was processed including, but not
limited to a public notice, in the time and manner prescribed by State and local law.
C. The Planning Commission, at a regular meeting, considered Planning
Application No. PA05-0314 on April 19, 2006, at a duly noticed public hearing as
prescribed by law, at which time the City staff and interested persons had an
opportunity to and did testify either in support or in opposition to this matter.
D. The City Council, at a regular meeting, considered Planning Application
No. PA05-0314 on July 11, 2006 at a duly noticed hearing as prescribed by law, at
which time the City staff and interested persons had an opportunity to and did testify
either in support or in opposition to this matter.
Section 2. Findings. The City Council, in approving Planning Application No.
PA05-0314 (Minor Conditional Use Permit and Findings of Public Convenience or
Necessity) hereby makes the following findings as required by Section 17.04.010.E of
the Temecula Municipal Code.
Conditional Use Permit (Code Section 17.040.01 O.E\.
A. The proposed conditional use is consistent with the General Plan and the
Development Code.
The proposed use is consistent with the General Plan Land Use Element
(Community Commercial) and Zoning (Specific Plan-1), as well as, the standards
within the Development Code. The project exceeds the minimum separation
requirement of 500 feet from a religious institution, school, or public park.
However, the City Council determined that the use is not compatible with existing
adjacent uses.
B. The proposed minor conditional use is compatible with the nature,
condition and development of adjacent uses, buildings and structures and the proposed
minor conditional use will not adversely affect the adjacent uses, buildings or structures.
The proposed project is compatible with the nature, condition and development
of adjacent uses, buildings, and structures because the proposed site location is
greater than 500 feet from any a public school, church, or park as required by the
City Development Code..
C. The nature of the proposed minor conditional use is not detrimental to the
health, safety and general welfare of the community.
The nature of the proposed use will not be detrimental to the health, safety and
general welfare of the community because the proposed use offers a variety of
retail goods and is not exclusively selling alcohol, and has been conditioned to
ensure that all employees involved with the sales will receive training in the
proper procedures and identification checks.
Criteria to iustifv makina a findina of Public Convenience or Necessity.
A. Is the proposed use consistent with the General Plan and the
Development Code?
Yes. The proposed use is consistent with the General Plan Land Use Element
(Community Commercial) and Zoning (Specific Plan-1), as well as, the standards
within the Development Code. The project exceeds the separation requirement
of 500 feet from a religious institution, school, or public park. However, the City
Council determined that the use is not compatible with existing adjacent uses.
B. Is the proposed use compatible with the nature, condition, and character
of adjacent land uses?
Yes. The proposed project is compatible with the nature, condition and
development of adjacent uses, buildings, and structures because the proposed
project is not in close proximity to a public high school.
C. Will the proposed use have an adverse effect on adjacent land uses?
No. The site is not in close proximity to a public high school and is a general
retail use located in an approved shopping center.
D. Would the proposed use result in an excessive number of similar
establishments in close proximity?
No. Per information obtained from Alcohol Beverage Control, there are currently
a total of 11 Type 21 licenses authorized within Census Tract 0432.03 and a total
of 8 are allowed before being considered over-concentrated by ABC. However,
the majority of the total alcohol licenses in that Census Tract are restaurant uses.
The project will help add diversification to the rtBil uses in that Census Tract.
Section 3. Environmental Comoliance. A Notice of Exemption for Planning
Application No. PA05-0314 was made per the California Environmental Quality Act
Guidelines Section 15301, Existing Facilities.
Section 4. Conditions. That the City of Temecula City Council hereby
approves Planning Application PA05-0314 (Minor Conditional Use Permit and Findings
of Public Convenience or Necessity), subject to the conditions of approval set forth on
Exhibit A, attached hereto, and incorporated herein by this reference together with any
other conditions that may be deemed necessary.
PASSED, APPROVED, AND ADOPTED by the City Council of the City of
Temecula this 11th day of July , 2006.
Ron Roberts, Mayor
ATTEST:
Susan W. Jones, MMC
City Clerk
[SEAL]
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss
CITY OF TEMECULA )
I, Susan W. Jones, MMC, City Clerk of the City of Temecula, do hereby certify that
the foregoing Resolution No. was duly and regularly adopted by the City Council of
the City of Temecula at a meeting thereof held on the 11 th day of July, 2006, by the
following vote:
AYES:
COUNCIL MEMBERS:
NOES:
COUNCIL MEMBERS:
ABSENT:
COUNCIL MEMBERS:
ABSTAIN:
COUNCIL MEMBERS:
Susan W. Jones, MMC
City Clerk
EXHIBIT A
FINAL CONDITIONS OF APPROVAL
EXHIBIT A
CITY OF TEMECULA
FINAL CONDITIONS OF APPROVAL
Planning Application No.: PA05-0314
Project Description:
A Minor Conditional Use Permit and Public
Convenience or Necessity Findings to allow for the
sale of beer, wine, and distilled spirits (Type 21
license, off-sale general) from an approved 16,836
square foot commercial building to be located at 39782
Winchester Road
Assessor's Parcel No.: 920-100-013
MSHCP CATEGORY: N1A
DIF CATEGORY: N/A
TUMF CATEGORY: N/A
Approval Date: July 11, 2006
Expiration Date: July 11, 2008
WITHIN 48 HOURS OF THE APPROVAL OF THIS PROJECT
Planning Department
1. The applicanVdeveloper shall deliver to the Planning Department a cashier's check or
money order made payable to the County Clerk in the amount of Sixty-Four Dollars
($64.00) for the County administrative fee, to enable the City to file the Notice of
Exemption as provided under Public Resources Code Section 211 08(b) and California
Code of Regulations Section 15062. If within said 48-hour period the
applicanVdeveloper has not delivered to the Planning Department the check as required
above, the approval for the project granted shall be void by reason of failure of condition
(Fish and Game Code Section 711.4(c)).
GENERAL REQUIREMENTS
Planning Department
2. The applicant shall sign both copies of the final conditions of approval that will be
provided by the Planning Department staff, and return one signed set to the Planning
Department for their files.
3. The applicant shall comply with the statement of operations for PA05-0314 on file with
the Planning Division, unless superceded by these Conditions of Approval.
4. This Conditional Use Permit may be revoked pursuant to Section 17.03.080 of the City's
Development Code.
5. The applicant and owner of the real property subject to this condition shall hereby agree
to indemnify, protect, hold harmless, and defend the City with Legal Counsel of the City's
own selection from any and all claims, actions, awards, judgments, or proceedings
against the City to attack, set aside, annul, or seek monetary damages resulting, directly
or indirectly, from any action in furtherance of and the approval of the City, or any
agency or instrumentality thereof, advisory agency, appeal board or legislative body
including actions approved by the voters of the City, concerning the Planning
Application. The City shall be deemed for purposes of this condition, to include any
agency or instrumentality thereof, .or any of its elected 'or appointed officials, officers,
employees, consultants, contractors, legal counsel, and agents. City shall promptly
notify both the applicant and landowner of any claim, action, or proceeding to which this
condition is applicable and shall further cooperate fully in the defense of the action. The
City reserves the right to take any and all action the City deems to be in the best interest
of the City and its citizens in regards to such defense.
6. Within two years of approval of this permit, commencement of the use shall have
occurred or the approval shall be subject to expiration.
7. If commencement of the use has not occurred within two years of approval of this permit,
the permittee may, prior to the expiration of the conditional use permit, apply for up to
three one-year extensions of time. Each extension of time shall be granted in one-year
increments only.
8. The City, and its Planning Director, Planning Commission, and City Council retain and
reserve the right' and jurisdiction to review and modify this conditional use permit
(including the conditions of approval) based on changed circumstances. Changed
circumstances include, but are not limited to the modification of the business, a change
in scope, emphasis, size or nature of the business, and the expansion, alteration,
reconfiguration or change of use. The reservation of right to review any conditional use
permit granted or approved or conditionally approved hereunder by the City, its Planning
Director, Planning Commission, and City Council is in addition to, and not lieu of, the
right of the City, its Director of Planning, Planning Commission, and City Council to
review and revoke or modify any conditional use permit approved or conditionally
approved hereunder for any violations of the conditions imposed on such conditional use
permit or for the maintenance of any nuisance condition or other code violation thereon.
9. Prior to the commencement of any alcohol sales, the applicant shall submit verification
the Department of Alcohol Beverage Control has issued the necessary Type 21 license
(off-sale general).
10. The applicant shall comply with all underlying conditions set pertaining to PA02-0364,
PA02-0365, and PA04-0540.
11. All of the foregoing conditions shall be complied with prior to occupancy or any use
allowed by this permit.
Police Department
12. Applicant has applied for a Type 21 (Off Sale General) (Package Store) through the
Riverside District Office of Alcoholic Beverage Control. Authorizes the sale of beer, wine
and distilled spirits for consumption off the premises where sold. Minors are allowed on
the premises.
13. Applicant will comply with City Ordinance 97-07, (9.14.010 Temecula Municipal Code
series) .
14. Identification will be verified utilizing one of the following:
a. A valid California Driver's License
b. A valid California Identification Card
c. A valid Military Identification Card (Active/Reserve/Retired/Dependent)
d. A valid Driver's License from any of the Fifty States or Territories of the United
States
e. A valid U.S. Passport
f. A valid government issued identification card issued by a Federal, State, County
or City agency
15. As noted above, only a valid government issued identification card issued by a federal,
state, county or City agency is acceptable, providing it complies with the below
requirements (25660 Business and Profession Code).
a. Name of person
b. Date of birth
c. Physical description
d. Photograph
e. Currently valid (not expired)
16. Applicant will ensure all employees involved with the sales, service and identification
checks for the purpose of any sales of alcoholic beverages is trained in the proper
procedures and identification checks. The Temecula Police Department provides free
training for all employers and employees involved in the service and sales of alcoholic
beverages. It is the responsibility of the applicant to set up a training session for all new
employees working at Beverages and More. Contact the Crime Prevention and Plans
Officer at (951) 695-2773 to set up a training date. Training must be completed prior to
the grand opening of this business and periodic updated training when new employees/
management are hired.
17., Any public telephones located on the exterior of the building should be placed in a well-
lighted, highly visible area, and installed with a "call-out only" feature to deter loitering.
This feature is not required for public telephones installed within the interior of the
building.
18. Licensees may not sell, give, or deliver alcohol (by the drink or by the package) between
2:00a.m. and 6:00a.m. of the same day. No person may knowingly purchase alcohol
between 2:00a.m. and 6:00a.m. (Section 25631 B&P), Licensees may not permit
patrons or employees to consume alcohol between 2:00a,m. and 6:00a.m. of the same
day (Section 25632 B&P).
19. Authority of Peace Officers/Refusing Inspection: Police officers, sheriffs' deputies, and
ABC investigators are sworn law enforcement officers (peace officers) with powers of
arrest. Whether in plainclothes or uniform, peace officers have the legal right to visit and
inspect any licensed premises at any time during business hours without a search
warrant or probable cause. This includes inspecting the bar and back bar, store room,
office, closed or locked cabinets, safes, kitchen, or any other area within the licensed
premises. It is legal and reasonable for licensees to exclude the public from some areas
of the premises. However, licensees cannot and must not deny entry to, resist, delay,
obstruct, or assault a peace officer. (Sections. 25616, 25753, and 25755 B&P; 148 and
241 (b) PC)
20. The following requirements apply to stores (license Type 20 and 21):
a. Post "No Loitering" signs upon written notice from the ABC
b. Post "No Open Container" signs upon written notice from the ABC
c. No alcohol consumption inside a store or outside a bar or tavern
d. Illuminate the exterior of the premises, including adjacent public sidewalks and
parking lots under the licensee's control, during all hours of darkness when open
for business
e. Remove litter daily from the premises, adjacent sidewalks and parking lots under
licensee's control and sweep/clean these areas weekly
f. Remove graffiti from premises and parking lot
g, Have no more than 33% of windows covered with advertising or signs
h. Have incoming calls blocked at pay phones upon request of local law
enforcement or ABC; (see item 6 above)
i. Have a copy of the operating standards available during normal business hours
for viewing by the general public (Section 25612.5 (c) B&P)
OUTSIDE AGENCIES
21. The applicant shall comply with the Department of Environmental Health letter dated
November 29, 2005.
By placing my signature below, I confirm that I have read, I understand and I accept all the
above-mentioned Conditions of Approval. I further understand that the property shall be
maintained in conformance with these conditions of approval and that any changes I may wish
to make to the project shall be subject to Community Development Department approval.
Applicant's Signature
Date
Applicant'
#4D&AiirMENTOf~ifo~NfAfHru.TH
November 29, 2005
~ IH~ IH \!I ~ ]1
. ~ DEe 0 1 Z005 J
City ofTem~ula Planning Department
. P.O. Box 9033
.Temecula, CA 92589-9033
Attention: Hannony Bales
By
RE: DeV"elopment Plan No. PAOS.314
Dear Ms. Bales:
I, Department ofEm:",,~enta1 Health has reviewed the Minbr Conditional Use Permit to sell
alcohol within a 16,836 square foot retail facility to be loc~ted within the Rancho Temecu1a
Town Center and we have no objections. <'
2. PRIOR TO THE ISSUANCE OF BUILDING PERMITS THE FOLLOWING SHOULD
BEREQUlBED: .
a) "Will-serve" letters from the appropriate Water and s~ering districts.
b) If there are to be any food establishments, (including 'lfendingmachines), three complete
sets of plans for each food establishment will be submitted including a fixture schedule,
a finish schedule and a plumbing schedule in order to ~e compliance with the
California Uniform Retail Food Facilities Law 2. For[specific reference, contact Food
Facility.Plan Examiners at (951) 600-6330.
Sincerely,
&Martinez, Supervis~ viroumental Health Specialist
(909) 955-8980 . .
NOTE: Any CUIrent additional......:.<.~~nts not covered can be appli~le at time of Building Plan review fQt
fmal Department ofL_., .:....._,mtaI Health clearance.
Local Enforcemen' Agency. P.O. Box 1280, Riverside, CA 92502.1.280 . (909)955-8982 . fAX (909) 781.9653 . 4080 Lemon Street, 9th Floor. Riverside,.CA 92501
Land Use and Water .Englneering . P.O. Box 1206, Rive,.;de, CA 92502.1206 . (909)955-8980 . fAX (9091 955-8903 . 4080 L.mon Strea, 2nd Floor, Riverside, CA 92501
Appeal
Planning Application No. PA05-0314 (Rite Aid - Minor Conditional Use
Permit and Findings of Public Convenience or Necessity)
Section A. Descriotion of Action Beina Aooeal
The Planning Commission denied Planning Application No. PA05-0314 (Rite Aid - Minor
Conditional Use Permit and Finding of Public Convenience or Necessity) for a Type 21
license (off-sale general - for the sale of beer, wine and distilled spirits) on April 19,
2006. This action is being appealed to the City Council, with a request to overturn the
Planning Commission denial and approve the above referenced Planning Application.
Section B. Written Descriotion to Suooort Aooeal
With the Planning Commission's determination that they could not make affirmative
findings for the requested Minor Conditional Use Permit and Finding of Public
Convenience or Necessity, Rite-Aid disagrees with the Planning Commission's
interpretation of the City's requirements. This belief is supported by the following facts.
. The proposed Rite Aid store is fully compliant with the requirements of the City's
Development Code. Section 17.08.030 indicates that Drug Stores are a
permitted use on this site. Subsection 17.10.020.B.5.a. states that consistency
with the General Plan is a key factor in determining the appropriateness of a
business selling alcoholic beverages. In addition, Section 17.10.020.B requires
that businesses selling alcoholic beverages may not be located within 500 feet
(measured from door-to-door) of a public park, religious institution or school. The
Planning Commission Staff Report stated that the actual distance is in excess of
700 feet and that the proposed Rite-Aid store is in complete compliance with the
Development Code.
. By using the Arco AM/PM store as a factor in their deliberations, the Planning
Commission assumed that the proposed Rite-Aid store and the existing Arco
AM/PM store have similar operational characteristics and have a similar potential
for adverse social impacts. Every important aspect of the Rite Aid operation is
different from the type of business operations typically found at Arco AM/PM's
and convenience markets selling alcoholic beverages.
. The School District received the public notice for the Commission hearing. It is
also very likely that members of the faculty saw the public hearing signs located
on the site of the proposed Rite Aid store. In response to this notice, the School
District did not contact the City with any questions or concerns about the
proposed business. Rite Aid believes that if the Temecula Valley Unified School
District was concerned with the proposed store near Chaparral High School, the
District would have responded in some way to the public notice. Since the
1
District did not contact the City, it does not appear that the School District was
concerned with Rite Aid's request to sell alcoholic beverages.
· The Planning Commission has previously made a Finding of Public Convenience
or Necessity for a business in the same shopping center whose primary products
are alcoholic beverages without any of the same concerns that were used in the
denial of the proposed Rite Aid store. The previously approved Beverages &
More store is located within Yo mile of Chaparral High School just like the
proposed Rite Aid store. The primary difference between the two businesses is
that the sale of alcoholic beverages is not the primary product for Rite Aid.
In conclusion, the proposed Rite Aid store is consistent with the General Plan and
Development Code, Rite Aid has demonstrated that their stores are well-run responsible
businesses, for these reasons, Rite Aid has appealed the Planning Commission's
decision.
Section C. Evidence to SUDDort Position
The facts that support the appeal are as follows:
. The Planning Department Staff was supportive of the proposed applications.
· The proposed business meets and exceeds the Development Code requirements.
· The Police Department reviewed the project and provided conditions of approval to
ensue that the public health and safety was maintained.
· No comments/opposition was received from Chaparral High School or the Temecula
Valley Unified School District.
. No variances, minor exceptions, or other modifications from the Development Code
were required or requested.
. The store operator has an exemplary record when it comes to complying with state
and local regulations regarding the off-sale general - for the sale of beer, wine and
distilled spirits. No violations have occurred at the existing Temecula stores.
· Training is provided to the store employees and there is a zero tolerance for
employees that violate this policy.
. No public opposition was present either in writing or in attendance at the noticed
public hearing for the proposal.
. The Planning Commission has previously approved a Finding of Public Convenience
or Necessity for a Beverages & More store whose primary products are alcoholic
beverages and which is located within the same shopping center.
2
Section D. Desired Action to be Taken
The Appellant requests that the City Council overturn the Planning Commission's Denial
of Planning Application No. PA05-0314 (Rite Aid - Minor Conditional Use Permit and
Findings of Public Convenience or Necessity) and approve the Minor Conditional Use
Permit and make the Finding of Public Convenience or Necessity based on the facts
that have been presented.
3
. That the language: unless exemot under aoolicable law. be added to the end of
Condition of Approval No. 74.
. That the maximum height of any elevation be exactly as was shown in the original
approval.
MOTION: Commissioner Guerriero moved to approve staff recommendation subject to the
following: That under General Conditions -- that the hours of operations for Rite Aid shall be
8:00 a.m. to 10:00 p.m., seven days a week; that prior to the issuance of a building permit for
Rite Aid, a lot-line adjustment shall be filed and recorded with the City; that the language: unless
exemot under apolicable law, be added to the end of Condition of Approval No. 74; and that the
maximum height of any elevation be exactly as was shown in the original approval.
Commissioner Telesio seconded the motion. (Additional discussion ensued prior to the
vote; see below.)
Commission Chiniaeff expressed concern with the proposed project, advising that the City
Council has usurped the ability to approve anything; and that he would be of the opinion that the
installation of a Rite Aid, including a drive-through pharmacy would not be compatible with the
nature of the adjacent uses in the area.
At this time, the voice vote of the previously made motion reflected approval, with the
exceDtion of Commissioner Chiniaeff who voted No.
PC RESOLUTION NO. 06-031
A RESOLUTION OF THE PLANNING COMMISSION OF THE
CITY OF TEMECULA APPROVING PLANNING APPLICATION
NO. PA06-0018 A MAJOR MODIFICATION TO A
DEVELOPMENT PLAN INCLUDING FINAL ARCHITECTURAL
ELEVATIONS FOR THE MULTI-FAMILY RESIDENTIAL
BUILDINGS AND RETAIL/OFFICE BUILDINGS; REPLACING
TWO SPECULATIVE BUILDING PADS WITH A DRUG.STORE
TOTALING 17, 500 SQUARE FEET (RITE-AID); MODIFICATION
OF THE RECREATION CENTER, AND MODIFICATION OF THE
ROOF PLANS); AND PA06.0019 A CONDITIONAL USE
PERMIT FOR A DRIVE-THROUGH PHARMACY
At 7:29 p.m., the Planning Commission took a 10-minute break. At 7:39 p.m., the Planning
Commission resumed to the regularly scheduled agenda.
PUBLIC HEARING ITEMS
New Items
3 Planning Aoolication No. PA05-0314 a Minor Conditional Use Permit and Public,
Convenience or Necessitv Findinos. submitted bv Matthew Faqan. to allow the sale of beer,
wine. and distil/ed soirits located on the northeast corner of Winchester Road and Nicolas.
Road
Assistant Planner Linton provided the Commission with a staff report (of written record), noting
the following:
. Thatthe proposed hours of operation would be 8:00 a.m. to 11 :00 p.m.
C:IOocuments and Settings\Denise.Caravel1ilLocal Settlngs\Temporary Internet FHes10LK78\041906 (2).doc
5
· That the Rancho Temecula Town Center was approved by the City Council with a
Conditional Use Permit (CUP), which would allow for a total of four drive-thru facilities to
be established within the Development Plan; and that per COndition of Approval No.8, if
future tenants were to request the sale of alcohol, a separate Conditional Use Permit
shall be submitted for review and approval by the Planning Commission
· That the drive-thru would only be for pharmacy use; and that if it were the desire of the
Planning Commission, staff could add a Conditional of Approval that would state that the
drive-thru would specifically be for pharmacy usage
. That staff would be of the opinion that the AM/PM mini market across the street does not
offer any alcohol sales
· That staff verified that the proposed use would not be closer than 500-feet to Chaparral
High School.
Commissioner Chiniaeff expressed concern with the proposed project's close proximity to
Chaparral High School.
For the Commission, Associate Planner Linton advised that Beverages and More at the Rancho
Temecula Town Center was approved for alcohol sales.
At this time, the public hearing was opened.
Mr. Matthew Fagan, representing the applicant, stated the following:
· That although Chaparral High School would be directly across the street from the
proposed use, it would meet the requirement of 500 feet criteria
· That rigorous Conditions of Approval have been imposed on the project by the City and
Police Department
· That Rite Aid will be imposing a strenuous and focused training program on its
employees with regard to sale of alcohol and tobacco.
Understanding that there would be a fence along the perimeter of Chaparral High School,
Commissioner Chiniaeff expressed concern with the location of sales of alcohol across the
street; and relayed his opinion that the corner of Winchester Road and Nicolas Road (Rite Aid)
may result in a hangout for teenagers.
Mr. Tobe Koski, District Manager representing Rite Aid Drug Stores, offered the following:
. That the proposed Rite Aid will be using a computer-based training program to train its
employees
· That Rite Aid would also impose a zero tolerance policy with regard to selling of alcohol
to minors.
At this time, the public hearing was closed.
Reiterating his concern with the proximity of alcohol sales across the street from the high
school, Commissioner Chiniaeff stated that he would be of the opinion that the sale of alcohol
across the street from any high school should not be permitted.
Understanding that Rite Aid will be imposing a training course with regard to the sale of alcohol
to its employees, Commissioner Telesio stated that it would be his opinion that if any minor was
determined to buy alcohol, a distance of 500-feet would not be a deterrent; and that he would
not be opposed to the sale of alcohol, but would strongly encourage a heavy policy if a violation
were to occur.
C:IDocuments and 5ettingslDenise.CaravellilLocal 5ettingslTemporary Internet FileslOLK781041906 (2).doc
6
MOTION: Commissioner Telesio moved to approve staff recommendation. This motion died
for lack of a second.
Echoing Commissioner Chiniaeff's concerns, Commissioner Harter would also be of the opinion
that due to the close proximity of the high school, the proposed use would not be an appropriate
location for alcohol sales.
Reiterating his concern with Rite Aid becoming a hangout for teens, Commissioner Carey stated
that he would also be of the opinion that the sale of alcohol in such a close proximity of a high
school would not be appropriate.
Speaking in opposition of the City's over-concentrated liquor licenses, Chairman Guerriero
stated that the location of the proposed use would be a concern, but that he would be willing to
consider approval, if the applicant, would be willing to have the Alcohol Beverage Control (ABC)
perform extensive training for Rite Aid employees.
At this time, the public hearing was re-opened.
Mr. Tobe Koski, representing Rite Aid Stores, stated that not only would Rite Aid employees be
subject to a computer-based training program, but that employees would also be subject to
training videos with regard to ABC laws.
Commissioner Telesio queried on the difference between the proposed site compared to any
other commercial zone.
Referencing Commissioner Telesio's query, City Attorney Thorson informed that when the
proposed project was approved, a requirement was imposed that all uses would need to go
through the Conditional Use Permit process; that regardless of what the general law would be, a
condition was placed that would require the project to have a CUP; and that all concerns
expressed by the Planning Commission may be expressed and implemented through a CUP.
Commissioner Chiniaeff stated that, in his opinion, Findina of Public Convenience or
Necessitv cannot be made for the following reasons:
. That the proposed uses would not be compatible with the nature, condition, and
development of adjacent land uses
. That the proposed use would have an adverse effect on adjacent land uses
. That the proposed use would result in an excessive number of similar establishments in
close proximity.
MOTION: Commissioner Chiniaeff moved to deny staff recommendation based on the fact that
a Finding of Public Convenience or Necessity cannot be met advising that this would also apply
to the Conditional Use Permit. Commissioner Harter seconded the motion. (Additional
discussion ensued prior to the vote; see below.)
At this time, the public hearing was re-opened.
Requesting a continuance, Mr. Matthew Fagan, stated that a continuation would allow the
applicant and staff time to address the Commission's concerns.
At this time, the public hearing was closed.
At this time, the voice vote on the previously made motion reflected approval with the
exceotion of Commissioner Telesio who voted No.
C:IDocuments and SettingslDenise.CaravellilLocal SettingslTemporary Internet FileslOLK781D419D6 (2).doc
7
Per the request of City Attorney Thorson, a roll call vote was taken to deny staff
recommendation:
Commissioner Carey:
Commissioner Chiniaeff:
Chairman. Guerriero:
Commissioner Harter:
Commissioner lelesio:
yes to motion
yes to motion
yes to motion
yes to motion
No to motion
PC RESOLUTION NO. 06-032
A RESOLUTION OF THE PLANNING COMMISSION OF THE
CITY OF TEMECULA APPROVING PLANNING APPLICATION
NO. PA-05-0314, A REQUEST FOR A MINOR CONDITIONAL
USE PERMIT AND PUBLIC CONVENIENCE OR NECESSITY
FINDINGS TO ALLOW FOR THE SALE OF BEER, WINE, AND
DISTILLED SPIRITS (TYPE 21 LICENSE, OFF-SALE
GENERAL) FROM AN APPROVED 16,836 SQUARE FOOT
COMMERCIAL BUILDING TO BE LOCATED AT 39782
WINCHESTER ROAD, AND KNOWN AS ASSESSORS PARCEL
NO. 920-100-013
4 Plan nino Aoplication No. PA06-0011. a Minor Conditional Use Permit. submitted bv Michael.
Brewer. to allow for the sale of beer. wine. and distilled soirits. located at 41789 Nicole Lane
Associate Planner Fisk provided the Planning Commission with a staff report (of record).
At this time, the public hearing was opened.
Mr. Michael Brewer, representing the applicant, thanked staff for its hard work and stated that
the applicant would be in agreement of the Conditions of Approval.
At this time, the public hearing was closed.
MOTION: Commissioner Telesio moved to approve staff recommendation. Commissioner
Chiniaeff seconded the motion and voice vote reflected unanimous approval.
PC RESOLUTION NO. 06-033
A RESOLUTION OF THE PLANNING COMMISSION OF THE
CITY OF TEMECULA APPROVING PLANNING APPLICATION
NO. PA06-0011, A REQUEST FOR A MINOR CONDITIONAL
USE PERMIT TO ALLOW FOR THE SALE OF BEER, WINE,
AND DISTILLED SPIRITS (TYPE 47 ON-SALE GENERAL -
EATING ESTABLISHMENT FROM AN APPROVED
RESTAURANT LOCATED AT 41789 NICOLE LANE,
GENERALLY LOCATED ON THE WEST SIDE OF NICOLE
LANE, APPROXIMATELY 400 FEET SOUTH OF OVERLAND
DRIVE
C:\Documents and SetlingslDenise.CaravellilLocal SetlingslTemporary Inlernel FileslOLK781041906 (2).doc
8
DATE OF MEETING:
PREPARED BY:
PROJECT
DESCRIPTION:
RECOMMENDATION:
CEQA:
,
J
ellGtNAL
STAFF REPORT - PLANNING
CITY OF TEMECULA
PLANNING COMMISSION
April 19, 2006
Harmony Linton
TITLE:
Assistant Planner
Planning Application PA05-0314, A Minor Conditional Use Permit
and Public Convenience or Necessity Findings to allow for the sale
of beer, wine, and distilled spirits (Type 21 license, off-sale general)
to be located within Rite Aide, a 16,836 square foot commercial
building to be located on the northeast corner of Winchester Road
and Nicolas Road in the Rancho Temecula Town Center
r:8J Approve with Conditions
D Deny
D Continue for Redesign
o Continue to:
o Recommend Approval with Conditions
o Recommend Denial
r:8J Categorically Exempt
(Section) 15301
(Class)
o Notice of Determination
(Section)
o Negative Declaration
D Mitigated Negative Declaration with Monitoring Plan
DEIR
G:\Planning\2005IPA05-0314 Rite-Aid CUP, PCNIPlanninglPC Staff Report.doc
1
PROJECT DATA SUMMARY
Name of Applicant: Matthew FaQan, Matthew FaQan ConsultinQ
Date of Completion: October 25, 2005
Mandatory Action Deadline Date: April 19, 2006
General Plan Designation: Community Commercial (CC)
Zoning Designation: Specific Plan 1 (SP-1)
Site/Surrounding Land Use:
Site:
Commercial
North:
South:
East:
West:
Low Medium Residential/Santa Gertrudis Creek
AM/PM Gas Station/Retail/Daycare
Parkinq/Self -Storage Facility/Residential
Senior HousinQ/School
Lot Area:
1.12 acres
Total Floor Area/Ratio: N/A
Landscape Area/Coverage: N/A
Parking Required/Provided: N/A
BACKGROUND SUMMARY
Staff has worked with the applicant to ensure that all concerns have been addressed, and the
applicant concurs with the recommended Conditions of Approval.
The proposed project is a request to sell beer, wine, and distilled spirits (Type 21 license, off-
sale general) within Rite Aid, a 16,836 square foot commercial building to be built in the
Rancho Temecula Town Center. This center was approved by the City Council on November
23, 2004 with a Conditional Use Permit that allowed a total of four drive-thru facilities to be
established within the Development Plan. Per condition number eight of those Conditions of
Approval, if future tenants request the sales of alcohol, a separate Conditional Use Permit shall
be submitted for review and approval by the Planning Commission.
The California Department of Alcohol Beverage Control (ABC) considers the Census Tract in
which the project site is located to be "over-concentrated" in off-sale licenses. For this reason,
Public Convenience or Necessity findings will be required. The applicant is requesting the
Planning Commission make a Finding of Public Convenience or Necessity to authorize the
retail sales of beer, wine, and distilled spirits at 39782 Winchester Road within the Rancho
Temecula Town Center. The use matrix within the Roripaugh Estates Specific Plan reverts
back to the City of Temecula Development Code.
G:IPlanning\2005IPA05-0314 Rite-Aid CUP, PCNIPlanninglPC Staff Report.doc
2
)
ANALYSIS
Rite Aid is a retail pharmacy that also carries general merchandise along with pre-packaged
foods and drinks, and one-hour photo service. They are proposing to sell alcohol as an
additional convenience to the public by facilitating a one-stop shopping experience. The hours
of operation stated within their Statement of Operations are 8:00 a.m. to 11 :00 p.m. seven
days a week. The Statement of Operations has been attached.
Staff has verified through the Department of Alcohol Beverage Control that the project site is
within Census Tract 0432.03. Currently a total of 11 Type 21 (off-sale general) licenses are
authorized in said Tract and 8 are allowed before the Census Tract is considered over-
concentrated by ABC. Because ABC has determined this Census Tract to be over-
concentrated with off-sale licenses, Public Convenience or Necessity Findings are required.
The proposed project is a request to sell beer, wine, and distilled spirits in a retail setting. This
specific use requires a Type 21 license for off-sale general from Alcohol Beverage Control, and
a prior approved Conditional Use Permit requires that future tenants obtain a conditional use
permit prior to the sale of alcohol. The Development Code also states that any business
selling beer or wine shall be no closer than 500 feet from any public park, religious institution
or school. The GIS department has provided the necessary maps and staff has verified that
the proposed use is not closer than 500 feet from any religious institution, school, or public
park based on the measurement criteria within Section 17.10.020 of the Development Code.
The nearest such use is Chaparral High School which is located approximately 700 feet
southwest of the project across Winchester Road_
The Police Department has reviewed the proposed project and has provided Conditions of
Approval.
The proposed project is consistent with Section 17.10 of the Development Code, and the
Planning Commission has developed several criteria to determine whether or not a Finding of
Public Convenience or Necessity can be made. A new criteria was adopted by the City
Council on May 24, 2005, and the approval authority shall consider only the following when
making a Finding of Public Convenience or Necessity:
1. Whether or not the proposed project is consistent with the general plan and
development code.
2. Whether or not the proposed use is compatible with the nature, condition, and
development of adjacent land uses.
3. Whether or not the proposed use will have an adverse effect on adjacent land uses.
4. Whether or not the proposed use will result in an excessive number of similar
establishments in close proximity.
Staff feels that the findings for a Minor Conditional Use Permit can be made and that criteria
has been met to make the Findings for Public Convenience or Necessity.
G:IPlanning\2005IPA05-0314 Rite-Aid CUP, PCNIPlanninglPC Staff Report.doc
3
ENVIRONMENTAL DETERMINATION
In accordance with the California Environmental Quality Act, the proposed Project has been
deemed to be categorically exempt from further environmental review. (Class 15301, existing
facilities, no expansion of facilities)
CONCLUSION/RECOMMENDATION
Staff has reviewed the proposed project and has determined that the project is consistent with
the General Plan, Development Code, and the Roripaugh Estates Specific Plan. Staff
recommends the Planning Commission make the findings for a Minor Conditional Use Permit
and Public Convenience or Necessity findings. In addition, staff recommends the Planning
Commission determine that the project is exempt from review under CEQA Guidelines,
pursuant to Section 15301, Existing Facilities.
FINDINGS
Conditional Use Permit (Code Section 17.040.010E\
1. . The proposed conditional use is consistent with the General Plan and the Development
Code.
The proposed use is consistent with the General Plan (Community Commercial) and
Zoning (Specific Plan-1), as well as, the standards within the Development Code. The
project exceeds the minimum separation requirement of 500 feet from a religious
institution, school, or public park.
2. The proposed minor conditional use is compatible with the nature, condition and
development of adjacent uses, buildings and structures and the proposed minor
conditional use will not adversely affect the adjacent uses, buildings or structures.
The proposed project is compatible with the nature, condition and development of
adjacent uses, buildings, and structures because the proposed project will provide
additional convenience for the community and allow the business to be competitive with
other businesses selling beer, wine, and distilled spirits in the vicinity of the project.
3. The nature of the proposed minor conditional use is not detrimental to the health, safety
and general welfare of the community.
The nature of the proposed use is not detrimental to the health, safety and general
welfare to the community because the project will provide an additional convenience
and service to the community. The site is consistent with the City policies regarding
separation of sensitive uses. In addition, the City Police Department has reviewed the
proposed project and has issued Conditions of Approval.
G:IPlanning\2005IPA05-0314 Rite-Aid CUP, PCNIPlanninglPC Staff Report.doc
4
priteria to iustifv makina a findina of Public Convenience or Necessitv:
1. Is the proposed use consistent with the General Plan and the Development Code?
Yes. The proposed use is consistent with the General Plan (Community Commercial)
and Zoning (Specific Plan-1), as well as, the standards within the Development Code.
The project exceeds the separation requirement of 500 feet from a religious institution,
school, or public park.
2. Is the proposed use compatible with the nature, condition, and character of adjacent
land uses?
Yes. The proposed project is compatible with the nature, condition and development of
adjacent uses because the Development Code requires this type of use to be placed
away from residences, schools, parks, and religious institutions.
3. Will the proposed use have an adverse effect on adjacent land uses?
No. The site is consistent with the City policies regarding separation of any sensitive
uses. In addition, the City Police Department has reviewed the proposed project and
has issued Conditions of Approval. The closest land uses which could be considered
sensitive is Chaparral High School to the southwest across Winchester Road and a
daycare facility to the southeast across Nicolas Road both are over 500 feet from the
proposed project.
4. Would the proposed use result in an excessive number of similar establishments in
close proximity?
No. Per information obtained from Alcohol Beverage Control, there are currently a total
of 11 Type 21 licenses authorized within Census Tract 0432.03 and a total of 8 are
allowed before being considered over-concentrated by ABC. However, no off-sale
licenses are currently active within this tract and one license is pending. Based on the
information provided, staff feels that that we are able to make a finding based on
convenience.
ATTACHMENTS
1. Vicinity Map - Blue Page 6
2. Plan Reductions - Blue Page 7
3. PC Resolution No. 2006-_ - Blue Page 8
Exhibit A - Draft Conditions of Approval
4. Statement of Operations - Blue Page 9
5. Statement of Justification - Blue Page 10
6. Common ABC License Types - Blue Page 11
G:IPlanning\2005IPA05-0314 Rite-Aid CUP, PCNIPlanninglPC Staff Report.doc
5
ATTACHMENT NO.1
VICINITY MAP
G:IPlanning\200SIPAOS-Q314 Rite-Aid CUP, PCNIPlanninglPC Staff Report.doc
6
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ATTACHMENT NO.2
PLAN REDUCTIONS
G:IPlanning\200SIPAOS.0314 Rite-Aid CUP, PCNIPlanninglPC Staff Report.doc
7
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ATTACHMENT NO.3
PC RESOLUTION NO. 06-_
G:IPlanning\200SIPAOS-0314 Rite-Aid CUP, PCNIPlanninglPC Staff Report.doc'
S
PC RESOLUTION NO. 06-_
A RESOLUTION OF THE PLANNING COMMISSION OF THE
CITY OF TEMECULA APPROVING PLANNING APPLICATION
NO. PA 05-0314, A REQUEST FOR A MINOR CONDITIONAL
USE PERMIT AND PUBLIC CONVENIENCE OR NECESSITY
FINDINGS TO ALLOW FOR THE SALE OF BEER, WINE, AND
DISTILLED SPIRITS (TYPE 21 LICENSE, OFF-SALE
GENERAL) FROM AN APPROVED 16,836 SQUARE FOOT
COMMERCIAL BUILDING TO BE LOCATED AT 39782
WINCHESTER ROAD, AND KNOWN AS ASSESSORS PARCEL
NO. 920-100-013
Section 1. Matthew Fagan, representing Matthew Fagan Consulting filed Planning
Application No. PA05-0314 on October 25, 2006, in a manner in accord with the City of
Temecula General Plan and Development Code.
Section 2. Planning Application No. PA05-0314 was processed including, but not
limited to a public notice, in the time and manner prescribed by State and local law.
Section 3. The Planning Commission, at a regular meeting, considered Planning
Application No. PA05-0314 on April 19, 2006, at a duly noticed public hearing as prescribed by
law, at which time the City staff and interested persons had an opportunity to and did testify
either in support or in opposition to this matter.
Section 4. At the conclusion of the Planning Commission's Hearing and after due
consideration of the testimony, the Planning Commission approved Planning Application No. .
PA05-0314 subject to the conditions of approval after finding that the project proposed in
Planning Application No. PA05-0314 conformed to the City of Temecula General Plan and
Development Code.
Section 5. That the above recitations are true and correct and are hereby
incorporated by reference.
Section 6. Findinps. The Planning Commission, in approving Planning Application
No. PA05-0314 (Minor Conditional Use Permit) hereby makes the following findings as required
by Section 17.04.01 O.E of the Temecula Municipal Code:
Conditional tJRA Permit (Code Section 17.040.010E\
A. The proposed conditional use is consistent with the General Plan and the
Development Code.
The proposed use is consistent with the General Plan (Community Commercial) and
Zoning (Specific Plan-1), as well as, the standards within the Development Code. The
project exceeds the minimum separation requirement of 500 feet from a religious
institution, school, or public park.
B. The proposed minor conditional use is compatible with the nature, condition and
development of adjacent uses, buildings and structures and the proposed minor conditional use
will not adversely affect the adjacent uses, buildings or structures.
G:\Planning\2005\PA05-0314 Rite-Aid CUP, PCN\Planning\Draft PC Reso and COA's.doc
1
The proposed project is compatible with the nature, condition and development of
adjacent uses, buildings, and structures because the proposed project will provide
additional convenience for the community and allow the business to be competitive with
other businesses selling beer, wine, and distilled spirits in the vicinity of the project.
C. The nature of the proposed minor conditional use is not detrimental to the health,
safety and general welfare of the community.
The nature of the proposed use is not detrimental to the health, safety and general
welfare to the community because the project will provide an additional convenience and
service to the community. The site is consistent with the City policies regarding
separation of sensitive uses. In addition, the City Police Department has reviewed the
proposed project and has issued conditions of approval.
Criteria to iustifv makina a findina of Public Convenience or Necessitv:
A.
Code?
Is the proposed use consistent with the General Plan and the Development
Yes. The proposed use is consistent with the General Plan (Community Commercial)
and Zoning (Specific Plan-1), as well as, the standards within the Development Code.
The project exceeds the separation requirement of 500 feet from a religious institution,
school, or public park.
B. Is the proposed use compatible with the nature, condition, and character of
adjacent land uses?
Yes. The proposed project is compatible with the nature, condition and development of
adjacent uses because the Development Code requires this type of use to be placed
away from residences, schools, parks, and religious institutions.
C. Will the proposed use have an adverse effect on adjacent land uses?
No. The site is consistent with the City policies regarding separation of any sensitive
uses. In addition, the City Police Department has reviewed the proposed project and
has issued conditions of approval. The closest land use which could be considered
sensitive is Chaparral High School located southeast on Winchester Road, over 1000
feet from the proposed project.
D. Would the proposed use result in an excessive number of similar establishments in close
proximity?
No. Per information obtained from Alcohol Beverage Control, there are currently a total
of 11 Type 21 licenses authorized within Census Tract 0432.03 and a total of 8 are
allowed before being considered over-concentrated by ABC. However, no off-sale
licenses are currently active within this tract and one license is pending. Based on the
information provided, staff feels that that we are able to make a finding based on
convenience.
G:\Planning\2005\PAOS-0314 Rite-Aid CUP, PCN\Planning\Draft PC Reso and COA's.doc
2
Section 7. Environmental Comoliance. A Notice of Exemption for Planning
Application No. PA05-0314 was made per the California Environmental Quality Act Guidelines
Section 15301 (Existing Facilities, Class 1). The proposed project will not add square footage
to an existing commercial building, located at 39782 Winchester Road (APN: 920-100-013).
Section 8. Conditions. That the City of Temecula Planning Commission hereby
conditionally approves the Application, a request for a Minor Conditional Use Permit to allow the
sale of beer, wine, and distilled spirits (type 21 license, off-sale general) to be located in a
16,836 square foot commercial building, attached hereto on Exhibit A, and incorporated herein
by this reference together with any and all necessary conditions that may be deemed
necessary.
Section 9. PASSED, APPROVED AND ADOPTED by the City of Temecula
Planning Commission on this 19th day of April 2006.
Ron Guerriero, Chairman
ATTEST:
Debbie Ubnoske, Secretary
SEAL}
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss
CITY OF TEMECULA )
I, Debbie Ubnoske, Secretary of the Temecula Planning Commission, do hereby certify
that PC Resolution No. 06-_ was duly and regularly adopted by the Planning Commission of
the City of Temecula at a regular meeting thereof held on the 19th day of April 2006, by the
following vote:
AYES:
NOES:
ABSENT:
PLANNING COMMISSIONERS:
PLANNING COMMISSIONERS:
PLANNING COMMISSIONERS:
PLANNING COMMISSIONERS:
ABSTAIN:
Debbie Ubnoske, Secretary
G:\Planning\2005\PA05-0314 Rite-Aid CUP, PCN\Planning\Draft PC Reso and COA's.doc
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EXHIBIT A
DRAFT CONDITIONS OF APPROVAL
G:\Planning\2005\P A05-0314 Rite.Aid CUP, PCN\Planning\Draft PC Reso and COA's.doc
4
EXHIBIT A
CITY OF TEMECULA
DRAFT CONDITIONS OF APPROVAL
Planning Application No.: PA05-0314
Project Description:
A Minor Conditional Use Permit and Public
Convenience or Necessity Findings to allow for the
sale of beer, wine, and distilled spirits (Type 21
license, off-sale general) from an approved 16,836
square foot commercial building to be located at 39782
Winchester Road
Assessor's Parcel No.: 920-100-013
MSHCP CATEGORY: N/A
DIF CATEGORY: N/A
TUMF CATEGORY: N/A
Approval Date: April 19, 2006
Expiration Date: April 19, 2008
WITHIN 48 HOURS OF THE APPROVAL OF THIS PROJECT
Planning Department
1. The applicant/developer shall deliver to the Planning Department a cashier's check or
money order made payable to the County Clerk in the amount of Sixty-Four Dollars
($64.00) for the County administrative fee, to enable the City to file the Notice of
Exemption as provided under Public Resources Code Section 21108(b) and California
Code of Regulations Section 15062. If within said 48-hour period the
applicant/developer has not delivered to the Planning Department the check as required
above, the approval for the project granted shall be void by reason of failure of condition
(Fish and Game Code Section 711.4(c)).
G:\Planning\2005\PA05-0314 Rite-Aid CUP, PCN\Planning\Draft PC Reso and COA's.doc
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!
GENERAL REQUIREMENTS
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Planning Department
2. The applicant shall sign both copies of the final conditions of approval that will be
provided by the Planning Department staff, and return one signed set to the Planning
Department for their files.
3. The applicant shall comply with the statement of operations for PA05"0314 on file with
the Planning Division, unless superceded by these Conditions of Approval.
4. This Conditional Use Permit may be revoked pursuant to Section 17.03.080 of the City's
Development Code.
5. The applicant and owner of the real property subject to this condition shall hereby agree
to indemnify, protect, hold harmless, and defend the City with Legal Counsel of the City's
own selection from any and all claims, actions, awards, judgments, or proceedings
against the City to attack, set aside, annul, or seek monetary damages resulting, directly
or indirectly, from any action in furtherance of and the approval of the City, or any
agency or instrumentality thereof, advisory agency, appeal board or legislative body
including actions approved by the voters of the City, concerning the Planning
Application. The City shall be deemed for purposes of this condition, to include any
agency or instrumentality thereof, or any of its elected or appointed officials, officers,
employees, consultants, contractors, legal counsel, and agents. City shall promptly
notify both the applicant and landowner of any claim, action, or proceeding to which this
condition is applicable and shall further cooperate fully in the defense of the action. The
City reserves the right to take any and all action the City deems to be in the best interest
of the City and its citizens in regards to such defense.
6. Within two years of approval of this permit, commencement of the use shall have
occurred or the approval shall be subject to expiration.
7. If commencement of the use has not occurred within two years of approval of this permit,
the permittee may, prior to the expiration of the conditional use permit, apply for up to
three one-year extensions of time. Each extension of time shall be granted in one-year
increments only.
8. The City, and its Planning Director, Planning Commission, and City Council retain and
reserve the right and jurisdiction to review and modify this conditional use permit
(including the conditions of approval) based on changed circumstances. Changed
circumstances include, but are not limited to the modification of the business, a change
in scope, emphasis, size or nature of the business, and the expansion, alteration,
reconfiguration or change of use. The reservation of right to review any conditional use
permit granted or approved or conditionally approved hereunder by the City, its Planning
Director, Planning Commission, and City Council is in addition to, and not lieu of, the
right of the City, its Director of Planning, Planning Commission, and City Council to
review and revoke or modify any conditional use permit approved or conditionally
approved hereunder for any violations of the conditions imposed on such conditional use
permit or for the maintenance of any nuisanc.e condition or other code violation thereon.
9. Prior to the commencement of any alcohol sales, the applicant shall submit verification
the Department of Alcohol Beverage Control has issued the necessary Type 21 license
(off-sale general).
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10. The applicant shall comply with all underlying conditions set pertaining to PA02-0364,
PA02-0365, and PA04-0540.
11. All of the foregoing conditions shall be complied with prior to occupancy or any use
allowed by this permit.
Police Department
12. Applicant has applied for a Type 21 (Off Sale General) (Package Store) through the
Riverside District Office of Alcoholic Beverage Control. Authorizes the sale of beer, wine
and distilled spirits for consumption off the premises where sold. Minors are allowed on
the premises.
13. Applicant will comply with City Ordinance 97-07, (9.14.010 Temecula Municipal Code
series).
14. Identification will be verified utilizing one of the following:
a. A valid California Driver's License
b. A valid California Identification Card
c. A valid Military Identification Card (Active/Reserve/Retired/Dependent)
d. A valid Driver's License from any of the Fifty States or Territories of the United
States
e. A valid U.S. Passport
f. A valid government issued identification card issued by a Federal, State, County
or City agency
15. As noted above, only a valid government issued identification card issued by a federal,
state, county or City agency is acceptable, providing it complies with the below
requirements (25660 Business and Profession Code).
a. Name of person
b. Date of birth
c. Physical description
d. Photograph
e. Currently valid (not expired)
16. Applicant will ensure all employees involved with the sales, service and identification
checks for the purpose of any sales of alcoholic beverages is trained in the proper
procedures and identification checks. The Temecula Police Department provides free
training for all employers and employees involved in the service and sales of alcoholic
beverages. It is the responsibility of the applicant to set up a training session for all new
employees working at Beverages and More. Contact the Crime Prevention and Plans
Officer at (951) 695-2773 to set up a training date. Training must be completed prior to
the grand opening of this business and periodic updated training when new employees/
management are hired.
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17. Any public telephones located on the exterior of the building should be placed in a well-
lighted, highly visible area, and installed with a "call-out only" feature to deter loitering.
This feature is not required for public telephones installed within the interior of the
building.
18. Licensees may not sell, give, or deliver alcohol (by the drink or by the package) between
2:00a.m. and 6:00a.m. of the same day. No person may knowingly purchase alcohol
between 2:00a.m. and 6:00a.m. (Section 25631 B&P). Licensees may not permit
patrons or employees to consume alcohol between 2:00a.m. and 6:00a.m. of the same
day (Section 25632 B&P).
19. Authority of Peace Officers/Refusing Inspection: 'police officers, sheriffs' deputies, and
ABC investigators are sworn law enforcement officers (peace officers) with powers of
arrest. Whether in plainclothes or uniform, peace officers have the legal right to visit and
inspect any licensed premises at any time during business hours without a search
warrant or probable cause. This includes inspecting the bar and back bar, store room,
office, closed or locked cabinets, safes, kitchen, or any other area within the licensed
premises. It is legal and reasonable for licensees to exclude the public from some areas
of the premises. However, licensees cannot and must not deny entry to, resist, delay,
obstruct, or assault a peace officer. (Sections. 25616, 25753, and 25755 B&P; 148 and
241 (b) PC)
20. The following requirements apply to stores (license Type 20 and 21):
a. Post "No Loitering" signs upon written notice from the ABC
b. Post "No Open Container" signs upon written notice from the ABC
c. No alcohol consumption inside a store or outside a bar or tavern
d. Illuminate the exterior of the premises, including adjacent public sidewalks and
parking lots under the licensee's control, during all hours of darkness when open
for business
e. Remove litter daily from the premises, adjacent sidewalks and parking lots under
licensee's control and sweep/clean these areas weekly
f. Remove graffiti from premises and parking lot
g. Have no more than 33% of windows covered with advertising or signs
h. Have incoming calls blocked at pay phones upon request of local law
enforcement or ABC; (see item 6 above)
i. Have a copy of the operating standards available during normal business hours
for viewing by the general public (Section 25612.5 (c) B&P)
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"
OUTSIDE AGENCIES
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/-
I
,
21. The applicant shall comply with the Department of Environmental Health letter dated
November 29, 2005.
By placing my signature below, I confirm that I have read, I understand and I accept all the
above-mentioned Conditions of Approval. I further understand that the property shall be
maintained in conformance with these conditions of approval and that any changes I may wish
to make to the project shall be subject to Community Development Department approval.
Applicant's Signature
Date
Applicant's Printed Name
G:\Planning\2005\PA05-0314 Rite-Aid CUP, PCN\Planning\Draft PC Reso and COA's.doc
11
DC', JNTY OF RIVERSIDE . HEAL ! SERVICES AGENCY 0
DEPARTMENT OF ENVIRONMENTAL HEALTH
City of Temecula Planning 0,,1"" ;",oot
P.O. Box 9033
Temecula, CA 92589-9033
Attention: Hannony Bales
\U)~@~ow~~
\ill DEe 0 1 2.005 illl
November 29, 2005
By - -
RE: Development Plan No, PA05-314
Dear Ms. Bales:
1. Department of Environmental Health has reviewed the Minor Conditional Use Permit to sell
alcohol within a 16,836 square foot retail facility to be located within the Rancho Temecu1a
Town Center and we have no objections.
2. PRIOR TO THE ISSUANCE OF BUILDING PERMITS THE FOLLOWING SHOULD
BE REQUIRED:
a) "Will-serve" letters from the "l'l"Vl'.:ate water and sewering districts.
b) If there are to be any food establishments, (including vending machines), three complete
sets of plans for each food establishment will be submitted including a fIxture schedule,
a finish schedule and a plumbing schedule in order to ensure compliance with the
California Uniform Retail Food Facilities Law 2. For specific reference, contact Food
Facility. Plan Examiners at (951) 600-6330.
Sincerely,
~~ez, Sup~sin
(909) 955-8980
NOTE: A11y current additional requirements not covered can be applicable at time of Building Plan review for
fmal Department of Environmental Health clearance.
vironmental Health Specialist
Loca! Enforcement Agency ~ PO. Box 1280. Riverside, CA 92502-1280 ~ (909] 955~8982 . FAX (909) 781-9653 ~ 4080 Lemon Street. 9th Floor, Riverside, CA 92501
Land Use and Water Engineering' PO. Box 1206, Riverside, CA 92502-1206 G (909) 955-8980 . FAX (909) 955-8903 ~ 4080 Lemon Street 2nd Floor, Riverside, CA 92501
ATTACHMENT NO.4
STATEMENT OF OPERATIONS
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lWEI
~
RITE AID Corporation
. MAILING ADDRESS
P.O. Box 3165
Harrisburg, PA 1710S
. GENERAL OFFICE
30 Hunter Lane
Camp Hill, PA 17011
. (717)761-2633
Public Necessity & Convenience Application
Proposed Rite Aid #6438
Rancho Temecula Town Center
39782 Winchester Road
Temecula CA
STATEMENT OF OPERATIONS
Hours of Ooeration - Our proposed hours of operation will be 8:00 AM - 11:00 PM seven days a
week.
Number of Emolovees - We intend to employ approximately 20 full or part-time employees at the
store.
Number of Reauired Parkina - 729 parking spaces are required. 976 will be provided.
Averaae Dailv Peak Trios Generated - Anticipated to be approximately 700.
Tyoe of Eauioment or Processes Used - We intend to use the following equipment: Cash registers,
electronic scanners, personal computers, film processing equipment, coolers, freezers, and an
automatic pill counting machine. We will also use a film development process.
l]e0c::riotion of Hazardous Materials - Retail sales of general household cleaning products and
health and beauty aids including aerosol products, flammable and combustible liquids, and toxic
solids and liquids.
Other Descriotions That Effectivelv Describe Prooosed Use - Operation of a retail pharmacy that will
maximize convenience to local shoppers by facilitating a 'one-stop' shopping experience.
Accordingly, in addition to a broad array of household goods and health and beauty aids in our
general merchandise sections, we intend to operate the following departments:
. Pharmacy
. Pre-Packaged Food & Drink
. One Hour Photo
. Alcoholic Beverages
Securitv Plan - Store associates will supervise the store during business hours and the store will be
locked and an electronic alarm will be armed whenever the building is closed.
Aooroximate Percentaae of Products Devoted to Alcohol- We are seeking a Type 21 Off-Sale
General Liquor License. We expect alcohol to comprise 4-9% of total sales at the location.
.
-,
ATTACHMENT NO.5
STATEMENT OF JUSTIFICATION
G:IPlanning\2005IPAOS-0314 Rite-Aid CUP, PCNIPlanninglPC Staff Report.doc
10 .
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Public Necessity & Convenience Application
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Proposed Rite Aid #6438
Rancho Temecula Town Center
39782 Winchester Road
Temecula CA
STATEMENT OF JUSTIFICATION
1. Does the proposed establishment have anv unique features, which are not found in other similar uses in the
communitv? Yes. Thrifty Payless (nc strives to create a unique shopping experience maximizing customer
service through store construction, product composition and placement, and associate training programs.
2. Does the oroposed establishment cater to an under-served population (i.e. patrons of a different socio"
economic class)? No. Thrifty Payless Inc serves the general public.
3. Would the proposed mode of operation of the proposed establishment (i.e. sales in coniunction oasoline sales.
tours. etc) be uniaue or differ from that of other establishments in the area? Yes. Thrifty Payless routinely offers
health education and assessment activities to customers and local residents, including diabetes detection and
prevention, and flu shot clinics.
4. Are there anv Qeographical boundaries (i.e. rivers, hillsides) or traffic barriers (freeways. maior roads. maior
intersections) separatinq the proqosed establishment from other establishments. Yes, the Rancho Temecula
Town Center will be bordered by Winchester, Harrison and Nicholas Roads.
5. Is the oroposed establishment located in an area where there is a sianificant influx of population durina
seasonaloeriods? No.
6. Is there a proliferation of licensed establishments within the Census Tract of the proposed establishment?
Unknown, awaiting data from the CA Department of Alcoholic Beverage Control.
7. Are there anv sensitive uses (i.e. schools. parks. hospitals, churches\, in close oroximitv to the proposed
establishment? No. There will not be any sensitive uses are located within 500 feet of the proposed store.
8. Would the proposed establishment interfere with these sensitive uses? No. Our processes and procedures
will minimize the problems of loitering and littering and prevent sales to minors.
9. Would the proposed establishment interfere with the auiet enioyment of their propertY bv the residents of the
area? No. The provision of adequate parking, distance from residences and use of an automatic, self-closing
door all help ensure quiet enjoyment of nearby properties.
10. Will the proposed establishment add to law enforcement problems in the area? No. Thrifty Payless
associ<;lte training and register technology combine to prevent sales to underage customers. The training our
associates receive also prevents sales to visibly intoxicated persons. Additionally, Thrifty Payless Inc accepts by
condition that Beer, malt beverages, and wine coolers in containers of 16 oz. or less cannot be sold by singie
containers, but must be sold in manufacturer pre-packaged multi-unit quantities
'\
ATTACHMENT NO.6
COMMON ABC LICENSE TYPES
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Department of Alcoholic Beverage Control..
COMMON ABC LICENSE 1 PES
AND THEIR BASIC PRIVILeGES
State of California
, GRAY DAVIS. Governor
fusiness, Transportation and Housing Agency
. .. MARIA CONTRERAS. SWEET, Secretary
LICENSE
TYPE DESCRIPTION
01 BEER MANUFACTURER. (Large Brewery) Authorizes the sale of ~er to any person holding a
license authorizing the sale of beer, and to consumers for consumption on or off the manufacturer's licensed
premises. Without any additional licenses, may sell beer and wine, regardless of source, to consumers for
consumption at a bona fide public eating place on the manufacturer's licensed preniises or at a bona fide
eating place contiguous to the manufacturer's licensed premises. May conduct beer tastings under specified
conditions {Section 23357.3\. Minors are allowed on the vremises. "
02 WINEGROWER. (Winery) Authorizes the saie of wine and brandy to any person holding a license
authorizing the sale of wine and brandy, and to consumers for consumption off the premises where sold.
Authorizes the sale of all wines and brandies, regardless of source, to consumers for consumption on the
premises in a bona fide eating place that is located on the licensed premises or on premises owned by the
licensee that are contiguous to the licensed premises and operated by and for the licensee. May possess wine
and brandy for use in the preparation of food and beverage to be consumed at the bona fide eating place.
May conduct winetastings under prescribed conditions (Section 23356.1; Rule"53). Minors are allowed on
the nremises. " "
20 OFF SALE BEER & WINE . (package Store) Authorizes the sale of beer and wine for consumption
" off the Dremises where Sold. Minors are allowed on the oremises. "
21 OFF SALE GENERAL. (package Store) Authorizes the sale of beer, wine and distilled spiritS for
consumntioil off the nremises wbere sold., Minors are allowed on thenremises.
23 SMALL BEER MANUFACTURER': (Brew Pub or Micro-brewery) Authorizes the same privileges
and restrictions as a Type"O!. A brewpub is typically a very small brewery with a restaurant. A micro-
brewery is a small'scale brewery operation that typically is dedicated solely to the production of specialty
beers, a1thou~h some do have a restaurant or Dub on their manufacturin~ nlant.
40 ON SALE BEER. (Bar, Tavern) Authorizes the sale of beer for consumption on or off the premises
where sold. No wine or distilled spiritS may be on the premises. Full meals are not required; however,
sandwiches or snacks must be available. Minors are allowed on the nremises.
41 ON SALE BEER & WINE - EATING PLACE. (Restaurant) Authorizes the sale of beer and
wine for consumption on or off the premises where sold. Distilled spirits may not be on the premises
(except brandy, rum, or liqueurs for use solely for cooking purposes). "Must operate and maintain the
licensed premises as a ~na fide eating place. Must make actual and substantial sales of meals, during the
nonnal meal hours that they are open, at least five days a week. Nonnal mealtimes are 6:00 a.m. .
9:00 a.m., 11:00 a.m. - 2:00 p.m., and 6:00 p.m. .. 9:00 p.m. Premises that are not open five days a week
must serve meals on the days they are ooen. Minors are allowed on the nremises.
42 ON SALE BEER & WINE - PUBLIC PREMISES. (Bar, Tavern) Authorizes the sale of beer
and wine for consumption on or off the premises where sold. No distilled spirits may be on the premises.
Minors are not allowed to enter and remain (see Section 25663.5 for exception, musicians). Food service is
not n'iluired. .
47 ON SALE GENERAL - EATING PLACE. (Restaurant) Authorizes the sale of beer, wine and
distilled spirits for consumption on ille licensed premises. Authorizes the sale of beer and wine for
consumption off the licensed premises. Must operate and maintain the licensed premises as a bona fide
eating place. Mustmake actual and .substantial sales of meals, during the nonnal meal hours that they are
open, at least five days a week. Nonnal mealtimes are 6:00 a.m. - 9:00 a.m.. 11:00 a.m. - 2:00 p,m.. and
6:00 p.m. - 9:00 p.m. Premises that are not open five days a week must serve meals on the days they are
ooen. Minors are allowed on the nremises.
48 ON SALE GENERAL - PUBLIC PREMISES. (Bar, Night Club) Authorizes the sale of beer,
wine and distilled spirits for consumption on the premises where sold. Authorizes the sale of beer and wine
for consumption off the premises where sold. Minors are not allowed to enter and remain (see Section
2.5663.5 for excention, musicians\. Food service. is not reouired. . . "
49 ON SALE GENERAL- SEASONAL. Authorizes the same privileges and restrictions as provided
for a Type 47 license except it is issued for a specific season. Inclusive dates of operation are listed on the
license certificate.
ABC-616 (1/02)
LICENSE
TYPE
51
52
57
59
60
61
67
70
75
80
ABG.616 (1/02)
DE S CRIPTlO N
CLUB. Authorizes the sale of beer, wine and distilled spirits, to members and guests only, for
consumption on the premises where sold. No off-sale privileges. Food service is not required. Minors are
allowed on the remises. "
VETERAN'S CLUB. Authorizes the sale of beer, wine and distilled spiritS, to members and guests
only, for consumption on the premises where sold. No off-sale privileges. Food service is not required.
Minors are allowed on the remises.
SPECIAL ON SALE GENERAL. Generally issued to certain organizations who cannot qualify for
club licenses. Authorizes the sale of beer, wine and distilled spirits, to members and guests only, for
consumption on the premises where sold. No off-sale privileges. Food service is not required. Minors are
allowed on the . emises.
ON SALE BEER AND WINE - SEASONAL. Authorizes the same privileges as a Type 41.
Issued for as' fic season. Inclusive dates of 0 ration are listed on the license certificate.
ON SALE BEER - SEASONAL. Authorizes the sale of beer only for consumption on or off the
premises where sold. Issued for a specific season. Inclusive dates of operation are listed on the license
certificate. Wine or distilled s irits ma not be on the remises. Minors are allowed on the remises.
ON SALE BEER - PUBLIC PREMISES. (Bar, Tavern) Authorizes the sale of beer only for
consumption on or off the licensed premises. Wine or distilled spirits may not be on the premises. Minors
are not allowed to enter and remain warnin si s uired. Food service is not uired.
BED AND BREAKFAST INN . ~thorizes the sale of wine purchased from a licensed winegrower or
wine wholesaler only to registered guests of the establishment for consumption on the premises. No beer
or distilJed spirits may be on the premises. Wine shall not be given away to guests, but the price of the
wine shall be included in the price of the overnight transient occupancy accommodation. Removal of wine
from the unds is not rmitted. Minors are allowed on the ises.
ON SALE GENERAL - RESTRICTIVE SERVICE - Authorizes the sale or furnishing of beer,
wine and distilled spiritS for consumption on the premises to the establishment's overnight transient
occupancy guests or their invitees. This license is nonnally issued to "suite-type" hotels and motels, which
exercise the license privileges for guests' "complimentary" happy hour. Minors are allowed on the
remises.
ON SALE GENERAL _ BREWPUB. (Restaurant) Authorizes the sale of beer, wine and distilled
spirits for consumption on a bona fide eating place plus a limited amount of brewing of beer. Also
authorizes the sale of beer and wine only for consumption off the premises where sold. Minors are allowed
on the remises.' .
BED AND BREAKFAST INN - GENERAL. Authorizes the sale of beer, wine and distilled spirits
purchased from a licensed wholesaler or winegrower only to registered guests of the establishment for
consumption on the premises. Alcoholic beverages shalJ not be given away to guests, but the price of the
alcoholic beverage shall be included in the price of the overnight transient occupancy accommodation.
Removal of alcoholic bevera es from the u.nds is not nnitted. Minors are allowed on the remises.
~'\f~:;".D.Dc,. ?o
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("bJrOL A~
CITY OF TEMECULA
COMMUNITY DEVELOPMENT DEPARTMENT
MEMORANDUM
TO:
FROM:
DATE:
SUBJECT:
City Manager/City Council
Debbie Ubnoske, Director of Planning
July 11, 2006
PA05-0314, Rite Aid Conditional Use Permit - Appeal
Please find attached revised Resolutions for the above-referenced project. Revisions were
made to remove references and findings for Public Convenience or Necessity. Based on
discussions with staff at Alcohol Beverage Control, the project site is located within a census
tract that is NOT over concentrated and therefore, Public Convenience or Necessity findings are
not required.
G:IPianning\200SIPAOS-0314 Rite-Aid CUP, PCNIPlanninglMEMO to Council revised resos.doc
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---
EXHIBIT A
FINAL CONDITIONS OF APPROVAL
. EXHIBIT A
CITY OF TEMECULA
FINAL CONDITIONS OF APPROVAL
Planning Application No.: PAOS-0314
Project Description:
A Minor Conditional Use Permit to allow for the sale of
beer, wine, and distilled spirits (Type 21 license, off.
sale general) from an approved 16,836 square foot
commercial building to be located at 39782 Winchester
Road
Assessor's Parcel No.: 920;.100-013
MSHCP CATEGORY: NJA
DIF CATEGORY: NJA
TUMF CATEGORY: N/A.
. Approval Date: July 11, 2006
Expiration Date: . July 11, 2008
WITHIN 48 HOURS OF THE APPROVAL OF THIS PROJECT
,Planning Department
1. The applicant/developer shall deliver to the Planning Department a cashier's check or
money order made payable to the County Clerk in the amount of Sixty-Four Dollars
($64.00) for the County administrative fee, to enable the City to file the Notice of
Exemption as provided under Public Resources Code Section 21108(b) and California
Code of Regulations Section 15062. If within said 48-hour period the
applicant/developer has not delivered to the Planning Department the check as required
above, the approval for the project granted shall be void by reason of failure of condition
(Fish and Game Code Section 711.4(c)). .
GENERAL REQUIREMENTS
Planning Department
2. The applicant shall'sign both copies of the final conditions of approval that will be
. provided by the Planning Department staff; and return one signed set to the Planning
Department for their files.
3. The applicant shall comply with the statement of operations for PA05-0314 on file with
the Planning Division, unless superceded by these Conditions of Approval.
4. This Conditional Use Permit may be revoked pursuant to Section 17.03.080 of the City's
Development Code.
5. The applicant and owner of the real property subject to this condition shall hereby agree
to indemnify, protect, hold harmless, and. defend the City with Legal Counsel of the City's
own selection from any and all claims, actions, awards, judgments, or proceedings
against the City to attack, set aside, annul, or seek monetary damages resulting, directly
or indirectly, from any action in furtherance of' and the approval of the City, or any
agency or instrumentality thereof, advisory agency, appeal board or legislative body
including actions approved by the voters of the City, concerning the Planning
Application. The City shall be deemed for purposes of this condition, to include any
agency or instrumentality thereof, or any of its elected or appointed officials, officers,
employees, consultants, contractors, legal counsel, and agents. City shall promptly
notify both the applicant and landowner of any claim, action, or proceeding to which this
condition is applicable and shall further cooperate fully in the defense of the action. The
City reserves the right to take any and all action the City deems to be in the best interest
of the City and its citizens in regards to such defense.
6. . Within two years of approval of this permit, commencement of the use shall have
occurred or the approval shall be subject to expiration.
7. If commencement of the use has not occurred within two years of approval of this permit,
the permittee may, prior to the expiration of the conditional. use permit, apply for up to .
three one-year extensions of time. Each extension of time shall be granted in one-year
increments only.
8. The City, and its Planning Director, Planning Commission, and City Council retain and
reserve the right and jurisdiction to review and modify this conditional use permit
(including the conditions of approval) based on changed. circumstances. Changed
circumstances include, but are not limited to the modification of the business, a change
in scope, emphasis, size or nature of the business, and the expansion, alteration,
reconfiguration or change of use. The reservation of right to review any conditional use
permit granted or approved or conditionally approved hereunder by the City, its Planning
Director, Planning Commission, and City Council is in addition to, and not lieu of, the
. right of the City, its Director of Planning, Planning Commission, and City Council to
review and revoke or modify any conditional use permit approved or conditionally
. approved hereunder for any violations of the conditions imposed on such conditional use
permit or for the maintenance of any nuisance condition or other code violation thereon.
9. Prior to the commencement of any alcohol sales, the applicant shall submit verification
the Department of Alcohol Beverage Control has issued the necessary Type 21 license
(off-sale general).
10. There shall be no window display of alcohol. (Added by the City Council on. July 11,
2006.)
11. The display of alcohol shall be limited to 190 square feet and shall be located at the rear
of the store. (Added by the City Council on JUly 11, 2006.)
12. Should there be 3 ABC violations, the Rite Aide minor conditional use permit shall be
automatically scheduled for a Planning Commission review of the permit. (Added by the
City Council on July 11, 2006.)
13. The applicant shall comply with all underlying conditions set pertaining to PA02.0364,
PA02-0365, and PA04-0540. .
14. All of the foregoing conditions shall be complied with prior to occupancy or any use
allowed by this permit.
Police Department
15. Applicant has applied for a Type 21 (Off Sale General) (Package Store) through the
Riverside District Office of Alcoholic Beverage Control. Authorizes the sale of beer, wine
and distilled spirits for consumption off the premises where sold. Minors are allowed on
the premises.
16. Applicant will comply with City Ordinance 97-07, (9.14.010 Temecula Municipal Code
series).
17. Identification will be verified utilizing one of the following:
a. A valid California Driver's License
b. A valid California Identification Card
c. A valid Military Identification Card (Active/ReservelRetiredlDependent)
d. A valid Driver's License from any of the Fifty States or Territories of the United
States
e. A valid U.S. Passport
f. A valid government issued identification card issued by a Federal, State, County
or City agency
18. As noted above, only a valid government issued identification card issued by a federal,
state, county or City agency' is acceptable, providing it. complies with the below
requirements (25660 Business and Profession Code). . .
a. Name of person
b. Date of birth
c. ' Physical description'
d. Photograph
e. Currently valid (notexpired)
19. Applicant will ensure all employees involved with the sales, service and identification
checks for the purpose of any sales of alcoholic beverages is trained in the proper
procedures and identification checks. The TemeclJla Police Department provides free
training for all employers and employees involved in the service and sales of alcoholic
beverages. It is the responsibility of the applicant to set up a training session for all new
employees working at Beverages and More. Contact the Crime Prevention and Plans
Officer at (951) 695-2773 to set up a training date. Training must be completed prior to
the grand opening of this business and periodic updated training when new employees/
management are hired.
21.
22.
23.
20.
Any public telephones located on the exterior of the building should be placed ina well-
lighted, highly visible area, and installed with a "call-out only" feature to deter loitering.
This feature is not required for public telephones installed within the interior of the
building.
Licensees may not sell, give, or deliver alcohol (by the drink or by the package) between
2:00a.m. and 6:00a.m. of the same day. No person may knowingly purchase alcohol
between 2:00a.m. and 6:00a.m. (Section 25631 B&P). Licensees may not permit
patrons or employees to consume alcohol between 2:00a.m. and 6;00a.m.of the same
day (Section 25632 B&P).
Authority of Peace Officers/Refusing Inspection: Police officers, sheriffs' deputies, and
ABC investigators are sworn law enforcement officers (peace officers) with powers of
arrest. Whether in plainclothes or uniform, peace officers have the legal right to visit and
inspect any licensed premises at any time during business hours without a search
warrant or probable cause. This includes inspecting the bar and back bar, store room,
office, closed or locked cabinets, safes, kitchen, or any other area within the licensed
premises. It is legal and reasonable for licensees to exclude the publiC from some areas
of the premises. However, licensees cannot and must not deny entry to, resist, delay,
obstruct, or assault a peace officer. (Sections. 25616, 25753, and 25755 B&P; 14.8 and
241 (b) PC)
The following requirements apply to stores (license Type 20 and 21):
a. Post "No Loitering" signs upon written notice from the ABC
b. Post "No Open Container" signs upon written notice from the ABC
c. No alcohol consumption inside a store or outside a bar or tavern
d. Illuminate. the exterior of the premises, including adjacent public sidewalks and
parking lots under the licensee's control, during all h(Jurs of darkness when open.
for business
Remove litter daily from the premises, adjacent sidewalks and parking lots under
licensee's control and sweep/clean these areas weekly
Remove graffiti from premises and parking lot
Have no more than 33% of windows covered with advertising or signs
Have incoming calls blocked at pay phones upon request of loeallaw
. enforcement or A8C; (see item 6 above)
Have a copy of the operating standards available during normal business hours
for viewing by the general public (Section 25612.5 (c) 8&P)
e .
. "
f.
g.
h.
i.
OUTSIDE AGENCIES
24. The applicant shall comply with the Department of Environmental Health letter dated
November 29, 2005.
By placing my signature below, I confirm that I have read, I understand and I accept all the
above-mentioned Conditions of Approval. I further understand that the property shall be
maintained in conformance with these conditions of approval and that any changes I may wish
to make to the project shall be subject to Community Development Department approval.
Applicant's Signature
Date
Applicanfs Printed Name
(
/
#AD~Ali&&OF~
, " " ,',',' '! ,'" !
t
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:,'~i SERVICES AGENCY 0
NMENTAL HEALTH
Novelliber 29,2005
\"-"'"'
. .. . .
...,... - .
',' " 'City ofTem~ula Planning.nepaitment ,
P.O. Box 9033 "
Temecula, CA 92589-9033
, Attention: Hannony Bales
t,":'" OOlE@lEn w ~ ~
i ' DEe 0 1 2005 ~
,
,
.'
By
RE:
Development PIan No. PAOS.314,
'J'
t '
! '
, !
Dear Ms. Bales: , r
' ,
1. Department of Environmental Health has reviewed the Minqr Conditional Use Permit to sell
alcohol within a 16,836 square foot retail facility to be 10~ within the Rancho Temecu1a
Town Center and we have no objeCtions. 1,' "
2. PRIOR TO TilE ISSUANCE OF BUILDING PERMITS [THE FOLLOWING SHOULD
BE REQUIRED: '" i '
a) "Will-serve"letters from the appropriate Water and seWering districts.
. .. '. ! .
b) If there are to be any food establishments, (including v~ding machines), three complete
'sets ofp1ans for each food establishment will be subn$ed including a fixture schedule,
a finish schedule and a plumbing schedule in order to ~ comp1ilince with the
CaliforDia UnifOrlll Retail Food Facilities Law 2. For $peciflc reference, contact Food
, . Facility.Plan Examiners at (951) 600-6330.' : '
,-.,.,,/
1
Sincerely,
Martinez, Supervisin vironmental Health Specialist
, (909) 955-8980' .
, NOTE:" Any current additional requirements not cove:ed can be applicable at time of Building Plan review for
fina1 Department ofllnvironmenta\ Health clearance. '!
\---.:-/'
LOGal Er.fo,<eme"t Agency. P.O, Bo, 1280, Riverside,CA 925.02.1280 . (909) 955.89ll2 . FAX (909) 781-9653' 4080 Lemon Slreet. 91h Floor, Riverside. CA 92501
Land Use and Waler EJ.gineering' P.O. Box 1206, Riversi~e. CA, 9~2},2~.,~(~9)%,~9,W, , F~)9~:,P 95,S-89il3,~, 4080 Lemo~ Slreet.2nd Roor, Hivo..id,. CA 92501
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