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Home My WebLink About111406 CC Agenda In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the office of the City Clerk (951) 694-6444. Notification 48 hours prior to a meeting v.ill enable the City to make reasonable arrangements to ensure accessibility to that meeting [28 CFR 35.102.35.104 ADA Title II] AGENDA TEMECULA CITY COUNCIL A REGULAR MEETING CITY COUNCIL CHAMBERS 43200 BUSINESS PARK DRIVE NOVEMBER 14, 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 and Redevelopment Agency pursuant to Government Code Section: 1. Conference with real property negotiator pursuant to Government Code Section 54956.8 regarding real property negotiations located at the northwest corner of Diaz Road and Dendy Parkway (APN 909-370-002). The negotiating parties are the City of Temecula/Redevelopment Agency and the AGK Group. Under negotiation are the price and terms of payment of real property interests. The City/Agency negotiators are Shawn Nelson and John Meyer. 2. Conference with City Attorney pursuant to Government Code Section 54956.9(b) 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 and City related entities based on existing facts and circumstances. With respect to such matter, the City Council will also meet pursuant to Government Code Section 54956.9(c) to 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: 06-13 Resolution: 06-91 CALL TO ORDER: Mayor Ron Roberts Prelude Music: Musicians Workshop Youth Orchestra Invocation: Pastor Gary Nelson of Calvary Chapel of Temecula Flag Salute: Council Member Edwards ROLL CALL: Comerchero, Edwards, Naggar, Washington, Roberts PRESENTA TIONS/PROCLAMA TIONS Temecula Achievement Proqram Presentation Navv Chief Pettv Officer Michael McCracken Proclamation Pink Heart Medal - Citv of Temecula Perpetual Plaque Familv Niqht in Temecula 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 Adoption Procedure RECOMMENDATION: 1 .1 Motion to waive the reading of the text of all ordinances and resolutions included in the agenda. 2 2 Minutes RECOMMENDATION: 2.1 Approve the minutes of September 26, 2006; 2.2 Approve the minutes of October 10, 2006. 3 Resolution approvinq List of Demands RECOMMENDATION: 3.1 Adopt a resolution entitled: RESOLUTION NO. 06-_ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA ALLOWING CERTAIN CLAIMS AND DEMANDS AS SET FORTH IN EXHIBIT A 4 Citv Treasurer's Report as of September 30. 2006 RECOMMENDATION: 4.1 That the City Council receive and file the City Treasurer's Report as of September 30, 2006. 5 Fire/EMS Protection Aqreement for Fiscal Year 2006-07 RECOMMENDATION: 5.1 That the City Council approve the Cooperative Agreement with the County of Riverside to provide fire protection, fire prevention, rescue service through June 30, 2008. 6 2006-07 Communitv Service Fundinq Proqram RECOMMENDATION: 6.1 That the City Council review and approve the 2006-07 Community Service Funding Program grants pursuant to the attached spreadsheet outlining the Subcommittee's recommendations of $120,000 to 41 organizations. 7 Adoption of 1 st Reconnaissance Marine Battalion (at the request of Mavor Pro Tem Washinqton) RECOMMENDATION: 7.1 Adopt the 1 st Reconnaissance Marine Battalion as the official battalion for the City of Temecula. 3 8 First Amendment to Aqreement with G/M Business Interiors RECOMMENDATION: 8.1 Approve the First Amendment to the Purchase and Installation Agreement between the City of Temecula and G/M Business Interiors for a total purchase amount of $35,217.58. 9 Police Department OTS Sobrietv Checkpoint Mini Grant Fundinq RECOMMENDATION: 9.1 Increase estimated General Fund Grant Revenue by $20,028; 9.2 Appropriate $20,028 from General Fund Grant Revenue to the Police Department. 10 Completion and Acceptance of the Pavement Rehab Proqram FY2005/06 - Diaz Road. Proiect No. PW05-06 RECOMMENDATION: 10.1 Accept the construction of the Pavement Rehab Program FY 2005/06 - Diaz Road - Project No. PW05-06 - as complete; 10.2 Direct the City Clerk to file and record the Notice of Completion, release the Performance Bond and accept a one year Maintenance Bond in the amount of 10% of the contract amount; 10.3 Release the Materials and Labor Bond seven months after filing of the Notice of Completion if no liens have been filed. 11 Quitclaim Portion of Wolf Creek Fire Station Site (APN 962-010-009) from Citv of Temecula to Wolf Creek Development. LLC RECOMMENDATION: 11.1 Adopt a resolution entitled: RESOLUTION NO. 06-_ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA AUTHORIZING THE QUITCLAIM OF PORTIONS OF ASSESSOR'S PARCEL NUMBER 962-010-009 TO WOLF CREEK DEVELOPMENT, LLC AND RESERVING AN EASEMENT FOR PUBLIC PURPOSES OVER SAID PROPERTY 12 Acceptance of certain Public Streets into the Citv-Maintained Svstem within Tract Map Nos. 29928. 29928-1. 29928-2. and 29928-3 (Located west of Marqarita Road. south of Date Street and north of Harveston Wav within the Harveston Subdivision) RECOMMENDATION: 4 12.1 Adopt a resolution entitled: RESOLUTION NO. 06-_ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA ACCEPTING CERTAIN PUBLIC STREETS INTO THE CITY-MAINTAINED SYSTEM (WITHIN TRACT NOS. 29928, 29928-1, 29928-2 AND 29928-3) 13 Acceptance of certain Public Streets into the Citv-Maintained Svstem within Tract Map Nos. 29929. and 29929-1 (Located west of Marqarita Road. south of Date Street and north of Harveston Wav within the Harveston Subdivision) RECOMMENDATION: 13.1 Adopt a resolution entitled: RESOLUTION NO. 06-_ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA ACCEPTING CERTAIN PUBLIC STREETS INTO THE CITY-MAINTAINED SYSTEM (WITHIN TRACT NOS. 29929 AND 29929-1) 14 Authorize Temporarv Street Closures for Santa's Electric Liqht Parade on December 1. 2006. and Deleqate Authoritv to issue Special Events/Street Closures Permit to the Director of Public Works/Citv Enqineer RECOMMENDATION: 14.1 Adopt a resolution entitled: RESOLUTION NO. 06-_ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA AUTHORIZING TEMPORARY STREET CLOSURES FOR JEFFERSON AVENUE AND ABUTTING STREETS FROM RANCHO CALIFORNIA ROAD TO OVERLAND DRIVE AND ALSO THE LOW FLOW CROSSING AT VIA MONTEZUMA AT DIAZ ROAD FOR TEMECULA'S HOLIDAY LIGHT PARADE ON DECEMBER 1, 2006, AND AUTHORIZING THE DIRECTOR OF PUBLIC WORKS/CITY ENGINEER TO ISSUE A SPECIAL EVENTS PERMIT INCLUDING STREET CLOSURES 15 Cooperative Aqreement with the Countv of Riverside to Mitiqate Traffic Impacts in Western Riverside Countv - Amendment NO.1 RECOMMENDATION: 15.1 Approve Amendment NO.1 to the Cooperative Agreement between the City of Temecula and the County of Riverside to Mitigate Traffic Impacts in Western Riverside County and authorize the Mayor to execute the documents. 5 16 First Amendment to Professional Consultant Services with Leiqhton Consultinq. Inc. for the Temecula Public Librarv - Project No. PWOO-07 RECOMMENDATION: 16.1 Approve the First Amendment to the agreement with Leighton Consulting, Inc. in an amount not to exceed $30,262.21 to provide additional Geotechnical and Special Inspection Services to complete the Temecula Public Library - Project No. PWOO- 07; 16.2 Authorize the City Manager to approve Extra Work Authorizations not to exceed the contingency amount of $3,062.22, which is equal to 10% contingency of the amendment amount. 17 Consultant Services Aqreement for Enqineerinq Desiqn Services for DePortola Road Pavement Rehabilitation Project from Jedediah Smith Road to Marqarita Road - Project No. PW06-10 RECOMMENDATION: 17.1 Approve an agreement with GFB-Friedrich & Associates, Inc. in an amount not to exceed $146,100.00 to design De Portola Road Pavement Rehabilitation Project between Jedediah Smith Road and Margarita Road, Project No. PW06-10, and authorize the Mayor to execute the agreement; 17.2 Authorize the City Manager to approve extra work not to exceed the contingency amount of $14,610, which is equal to 10% of the agreement amount. 18 Completion and Acceptance of Citv Maintenance Facilitv Expansion/Field Operations Center - Phase 1 - Project No. PW03-06 RECOMMENDATION: 18.1 Accept the City Maintenance Facility Expansion/Field Operations Center - Phase 1, Project No. PW03-06 - as complete; 18.2 File a Notice of Completion, release the Performance Bond, and accept a one-year Maintenance Bond in the amount of 10% of the contract amount; 18.3 Release the Materials and Labor Bond seven (7) months after filing of the Notice of Completion, if no liens have been filed. 19 Acceptance of certain Public Streets into the Citv-Maintained Svstem within Tract Map No. 30088 (Located west of Marqarita Road. south of Date Street and north of Harveston Wav within the Harveston Subdivision) RECOMMENDATION: 19.1 Adopt a resolution entitled: 6 RESOLUTION NO. 06-_ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA ACCEPTING CERTAIN PUBLIC STREETS INTO THE CITY-MAINTAINED SYSTEM (WITHIN TRACT NO. 30088) 20 Summarv Vacation of a Drainaqe Easement located as shown at Lot 1 and 2 of Parcel Map No. 23354 (Abbott Vascular. Inc. at Motor Car Parkwav) RECOMMENDATION: 20.1 Adopt a resolution entitled: RESOLUTION NO. 06-_ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA TO SUMMARILY VACATE AN EASEMENT FOR DRAINAGE PURPOSES LOCATED AS SHOWN AT LOT 1 AND 2 OF PARCEL MAP NO. 23354 PURSUANT TO THE AUTHORITY PROVIDED BY CHAPTER 4, PART 3, DIVISION 9 OF THE STREETS AND HIGHWAY CODE 21 Completion and Acceptance of the Temecula Police Department Sub-Station at the Promenade Mall RECOMMENDATION: 21.1 Accept the construction of the Temecula Police Department Sub-Station at the Promenade Mall as complete; 21.2 Direct the City Clerk to file and record the Notice of Completion, release the Performance Bond and accept a one year Maintenance Bond in the amount of 10% of the contract amount; 21.3 Release the Materials and Labor Bond seven (7) months after the filing of the Notice of Completion if no liens have been filed. 22 First Amendment to Contract with Charles Abbott for Fire Plan Check Services 22.1 Approve the First Amendment for fire plan check services with Charles Abbott in the amount of $60,000. 23 Temecula Public Librarv Fees RECOMMENDATION: 23.1 Adopt a resolution entitled: RESOLUTION NO. 06-_ 7 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA APPROVING A FEE SCHEDULE FOR THE TEMECULA PUBLIC LIBRARY 24 Librarv Operatinq Aqreement RECOMMENDATION: 24.1 Approve an operating agreement, in its substantial form, with the Riverside County Library System for the operations of the Temecula Public Library. 25 Two Year Cell Phone Contract Renewal with Sprint RECOMMENDATION: 25.1 Approve a two-year agreement with Sprint for the renewal of City Cellular Services. 26 Communitv Grant Aqreement with the Temecula Sister Citv Association RECOMMENDATION: 26.1 Approve a grant in the amount of $7,500.00 for the Temecula Sister City Association for fiscal year 2006-2007. 27 Additional Authorized Position RECOMMENDATION: 27.1 Approve the addition of one (1) Assistant City Manager position to the City's schedule of authorized positions. 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. 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. 8 CSD CONSENT CALENDAR 28 Minutes RECOMMENDATION: 28.1 Approve the minutes of October 10, 2006. 29 Professional Services Aqreement - Bonterra Consultinq - Environmental Clearance for the Ronald Reaqan Sports Park Desiltinq Basin - Project No. PW05-13 RECOMMENDATION: 29.1 Approve a Professional Services Agreement with Bonterra Consulting in an amount not to exceed $67,340.00 to prepare the Environmental Clearance for the Ronald Reagan Sports Park Desilting Basin, Project No. PW05-13, and authorize the President to execute the agreement; 29.2 Authorize the General Manager to approve extra work authorizations not to exceed the contingency amount of $6,734.00, which is equal to 10% of the agreement amount; 29.3 Advance $74,000.00 from TCSD - Citywide Fund to fund the project until such time Federal Emergency Management Agency (FEMA) provides funding through its reimbursement program. 30 Renovation at the Temecula Elementarv School Pool RECOMMENDATION: 30.1 Approve the Agreement with Jeff Kerber Pool Plastering, Inc., for $70,000.00 for the Renovation at the Temecula Elementary School Pool. 31 Acceptance of Landscape Bonds and Aqreement for Deer Hollow Road Parkwav RECOMMENDATION: 31.1 Accept the surety bonds and agreement from Wolf Creek Development, LLC to improve the parkways along Deer Hollow Road. 32 Acceptance of Landscape Bonds and Aqreement for Butterfield Ranch Landscaped Medians RECOMMENDATION: 32.1 Accept the surety bonds and agreement from BRSC, LLC to improve the landscaped medians on State Highway 79 South and Butterfield Stage Road. g 33 Acceptance of Landscape Bonds and Aqreement for Wolf Creek Linear Park South (Phase ill RECOMMENDATION: 33.1 Accept the surety bonds and agreement from Wolf Creek Development, LLC to improve the Linear Park South along Wolf Creek Drive (South). 34 Acceptance of Landscape Bonds and Aqreement for Parkwavs alonq Wolf Creek Drive South - (Phase II) RECOMMENDATION: 34.1 Accept the surety bonds and agreement from Wolf Creek Development, LLC to improve perimeter slopes and parkways along Wolf Creek Drive (South). 35 Communitv Services Guide to Leisure Activities Brochure RECOMMENDATION: 35.1 Award an Amendment to the Agreement with Graphics Unlimited Lithography, Inc. to extend the term of the Agreement to June 30, 2007, to increase the number of brochure copies, and to include a cultural arts insert for an additional amount of $19,739. 36 Patricia H. Birdsall Sports Park Fees RECOMMENDATION: 36.1 Adopt a resolution entitled: RESOLUTION NO. CSD 06-_ A RESOLUTION OF THE BOARD OF DIRECTORS OF THE TEMECULA COMMUNITY SERVICES DISTRICT OF THE CITY OF TEMECULA APPROVING A FEE SCHEDULE FOR THE USE OF THE PATRICIA H. BIRDSALL SPORTS PARK CSD DEPARTMENTAL REPORT 37 Communitv Services Department Monthlv Report CSD DIRECTOR OF COMMUNITY SERVICES REPORT CSD GENERAL MANAGERS REPORT CSD BOARD OF DIRECTORS REPORTS CSD ADJOURNMENT 10 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 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 38 Minutes RECOMMENDATION: 38.1 Approve the minutes of October 10, 2006. RDA BUSINESS 39 Issuance of Two Series of Tax Allocation Bonds bv the Redevelopment Aqencv of the Citv of Temecula for the Temecula Redevelopment Project NO.1 RECOMMENDATION: 39.1 Adopt a resolution entitled: RESOLUTION NO. RDA 06-_ A RESOLUTION OF THE BOARD OF DIRECTORS OF THE TEMECULA REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA AUTHORIZING THE ISSUANCE AND SALE OF TWO SERIES OF TAX ALLOCATION BONDS IN CONNECTION WITH TEMECULA REDEVELOPMENT PROJECT NO.1, AND APPROVING RELATED DOCUMENTS AND ACTIONS RDA DEPARTMENTAL REPORT 40 Redevelopment Aqencv Departmental Report 40.1 Redevelopment Department Monthly Report 11 RDA EXECUTIVE DIRECTORS REPORT RDA AGENCY MEMBERS REPORTS RDA ADJOURNMENT TPFA CONSENT CALENDAR 41 Minutes RECOMMENDATION: 41 .1 Approve the minutes of July 25, 2006. TPFA BUSINESS 42 Issuance of Two Series of Tax Allocation Bonds bv the Redevelopment Aqencv of the Citv of Temecula for the Temecula Redevelopment Project NO.1 RECOMMENDATION: 42.1 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 PURCHASE AND SALE OF TWO SERIES OF TAX ALLOCATION BONDS OF THE REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA AND APPROVING OTHER MATTERS RELATED THERETO RECONVENE TEMECULA CITY COUNCIL 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. 43 Appeal of Planninq Commission Approval of Planninq Application No. PA06-0213. a Development Plan with a Conditional Use Permit for the development of a water park located on 15.4 acres at the northwest corner of Ynez Road and Countv Center Drive consistinq of pools. slides. and other tvpes of water rides. concession stands. qift shop. partv room. chanqinq room with lockers. restrooms. picnic areas. service vard. and a 433 space parkinq lot. RECOMMENDATION: 12 43.1 Adopt a resolution entitled: RESOLUTION NO. 06-_ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA DENYING THE APPEAL OF PLANNING COMMISSION APPROVAL OF PLANNING APPLICATION NO. PA06-0213, A DEVELOPMENT PLAN WITH A CONDITIONAL USE PERMIT FOR THE DEVELOPMENT OF A WATER PARK LOCATED ON 15.4 ACRES AT THE NORTHWEST CORNER OF YNEZ ROAD AND COUNTY CENTER DRIVE COUNCIL BUSINESS 44 Public/Traffic Safetv Commission Appointment RECOMMENDATION: 44.1 Appoint one applicant to serve a full three-year term on the Public/Traffic Safety Commission through October 10, 2009. 45 Issuance of Two Series of Tax Allocation Bonds bv the Redevelopment Aqencv of the Citv of Temecula for the Temecula Redevelopment Project NO.1 RECOMMENDATION: 45.1 Adopt a resolution entitled: RESOLUTION NO. 06-_ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA APPROVING THE ISSUANCE BY THE REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA OF TWO SERIES OF TAX ALLOCATION BONDS DEPARTMENTAL REPORTS 46 Planninq Department Monthlv Report 47 Economic Development Department Monthlv Report 48 Citv Council Travel/Conference Report - September 2006 49 Buildinq and Safetv Department Monthlv Report 50 Public Works Department Monthlv Report 51 Police Department Monthlv Report CITY MANAGER REPORT CITY ATTORNEY REPORT 13 ADJOURNMENT Next regular meeting: City Council Regular, Tuesday, November 28, 2006, at 5:30 P.M., for a Closed Session, with regular session commencing at 7:00 PM, City Council Chambers, 43200 Business Park Drive, Temecula, California. 14 PROCLAMA TIONS AND PRESENTATIONS IV!3 2! ~~i 8- '" ::> ell ".'" ~ 0'" Ii ~ B' -~ ~ ~jl ~ -- " ~[ ~ ~< ~~ () J g,~ ~. ~rl 0 f Ii a. 0 " - ". ~ "0 <:"J (')~~ o (') '" s;::Tg '@: ~~ CI>('1)"'l s~a ('1)('1)- ::; ~ ..... 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'" O'Q(J ~ -. ~~ ~~ ~. ~ ~ ~ ~ ~ ~ ~ ~ ~ ..... l::: ~S" . ~ c ~ ~ ~ ~ ~ ~ a.. ~ ~~ ~ ~ ~ ~. ~~ ~~ ~ ~ ~~ ~ ~ ~ ~ ~ ~ ~ ~ . 8~ 2! ~~i 8- ~ ~ ".'" o '" ~ ~~ ~ '" !:1 B' eto ~~ ~ ~."l .~ -- ::> ~~ ~ ~~ () ~ ~I ~. .a () f ;; Ii R- 51 . ". ~ 'g ~ g 8" ('1) t:l i:T' (') ..s' 0 :=:~~ CI) ('1) '"l [~a ::;('1)Pi ..... "0 ...... ~ >-I ('1) 8~ o.~ s~ "00' ~ >-I CI) g B t:l .......s ~(b ~ S' ~(JQ ~ g. ....('1) g. Jo-:l 9'('1) ...,s CI) ('1) ~e. ~ ~ ,p..?;- i:T' ~ ...' ::; ('1) 0.< ('1) ~ ~ ~ a ~. '"d i:T'(3 lf~ : S ~ ~ 8 ::; ('1) 0. '" '" 0' $,>-1 ~I. ~a; ('1) ~ ~ \!IIIII. ~ ;:: ~ ~ == ~ ~ ;:: ~ ~ D ~ s.(] ~ g c ~ l::: ~ No -. ~ - ~ c ~~ l::l,.s. -. ~ ~(J ~ -. ~~ ~~ ~. ~ ~ ~ ~ ~ ~ ~ ~ ~ ..... l::: ~S" . ~ c ~ ~ ~ ~ ~ ~.~ ~. ~ ~ ~ ~ ~. ~ ~~ ~~ ~~ ~. ~ ~ ~ ~ ~ ~ ~ .. t' ~ ~ The City of Temecula PROCLAMATION WHEREAS, Navy Chief Petty Officer Michael R. McCracken is retiring from the United States Navy after 24 years of dedicated service; and WHEREAS, Chief Petty Officer McCracken's commitment to excellence is displayed by the medals he has earned during his years of service, including the Navy Commendation Medal, Navy Unit Commendation Medal, Coast Guard Service Ribbon, Six Good Conduct Medals, the National Defense Service Medal, Humanitarian Service Medal, Global War on Terrorism Expeditionary Medal, Global War on Terrorism Service Medal, and the Kuwait Liberation Medal, to name a few; and WHEREAS, Chief Petty Officer McCracken has distinguished himself as a devoted serviceman in the Navy. This has been demonstrated through his involvement in the following campaigns; the Iran - Iraq War, the Persian Gulf War, Operation Desert Shield, Operation Desert Storm, Operation Cease Fire, Operation Southern Watch, Operation Restore, and the Hope Global War on Terrorism; and WHEREAS, Chief Petty Officer McCracken has been a resident of Temecula since 1996; and WHEREAS, Chief Petty Officer McCracken was instrumental in bringing the USS Ronald Reagan relationship to the City of Temecula in 2005; and WHEREAS, the crew of the USS Ronald Reagan adopted the Ronald Reagan Sports Park as their own and provided countless hours of volunteer time to assist in the maintenance, upkeep, and care for this sports facility. NOW, THEREFORE, I, Ron Roberts, on behalf ofthe City Council ofthe City of Temecula, hereby proclaim November 14, 2006 to be "Chief Petty Officer Michael R. McCracken Day" We commend Chief Petty Officer McCracken on his numerous achievements and for his contributions to the City of Temecula. We congratulate him on his retirement and we wish him all the best in his future. IN WITNESS WHEREOF, I have hereunto set my hand and caused the Seal of the City of T emecula to be affixed this 14th day of November, 2006. Ron Roberts, Mayor Susan W. Jones, MMC, City Clerk The City of Temecula PROCLAMATION WHEREAS, strong families create strong communities and promote healthy social conditions. Strong families provide stability for our citizens and instill responsibility and values in our children; and WHEREAS, during National Family Week, we underscore our City's support of families and recognize the significance of family to our City; and WHEREAS, families have an important role in teaching our young people to understand the consequences oftheir actions and to recognize that the decisions they make today could affect the rest of their lives. In times of change, the family values of compassion, reverence, and integrity serve as steady guides; and WHEREAS, during National Family Week, we reaffirm the importance of families as a vital source of strength, confidence, and compassion for all of our citizens; and WHEREAS, the spiritual community of Temecula, in conjunction with the founders of National Family Week, suggests that families set aside every Monday as "Family Night" recognizing that quality time together provides an opportunity for parents to reinforce family values and strengthen family relationships. It also assists parents in building love, loyalty, and companionship, as well as providing a refuge from the many challenges facing children and families in today's world. NOW, THEREFORE, I, Ron Roberts, on behalf of the City Council of the City of Temecula, do hereby proclaim Monday, November 20th 2006, to be the first Monday declared as "Family Night" and to continue for subsequently one year from date. "Family Night in Temecula - 2006-2007" IN WITNESS WHEREOF, I have hereunto set my hand and caused the Seal of the City of T emecula to be affixed this 14th day of November, 2006. Ron Roberts, Mayor Susan W. Jones, MMC, City Clerk CONSENT CALENDAR ITEM NO.1 ITEM NO.2 MINUTES OF A REGULAR MEETING OF THE TEMECULA CITY COUNCIL SEPTEMBER 26, 2006 The City Council convened in Closed Session at 5:30 p.m. and its regular meeting commenced at 7:00 P.M., on Tuesday, September 26,2006, in the City Council Chambers of Temecula City Hall, 43200 Business Park Drive, Temecula, California. Present: 5 Council Members: Comerchero, Edwards, Naggar, Washington, and Mayor Roberts. Absent: o Council Members: None. PRELUDE MUSIC The Prelude Music was provided by Lauren Arasin. INVOCATION The invocation was given by Rabbi Hurwitz of Chabad of Temecula Valley. PLEDGE OF ALLEGIANCE The pledge of allegiance was presented by Council Member Naggar. PRESENTA TIONS/PROCLAMA TIONS Greek Heritaqe Week Proclamation On behalf of the City Council of the City of Temecula, Mayor Roberts proclaimed September 24'h through September 30'h, 2006, to be Greek Heritage Week. Thanking the City Council for its proclamation, Vice-Chairperson of the Festival Vestakis, invited the public to attend the Greek Festiva/ in Old Town. National Breast Cancer Awareness Month and Inland Empire Race for the Cure Month Proclamation Mayor Roberts proclaimed October 2006, to be Nationa/ Breast Cancer Awareness Month and Inland Empire Race for the Cure Month. In Appreciation of the City's continued sponsorship of the Race for the Cure, a representative was in attendance to accept the proclamation. PUBLIC COMMENTS A. Mr. Ray Waite, representing P&R Foundation, advised that the Temecu/a Fall Car Show will be held on October 6 and 7, 2006, in Old Town, Temecula. R:\Minutes\092606 CITY COUNCIL REPORTS A. Having attended a Memorial Service for Battalion Chief Farris, Mayor Pro Tem Washington noted that the ceremony was moving and his legacy was outstanding. Mr. Washington extended Happy Birthday wishes to Board Member Harker. Mayor Pro Tem Washington also informed the public that the local high schools are collecting Socks for Soldiers, and those interested may donate at local high schools throughout Temecula. B. Council Member Edwards apprised the public of the passing of former Council Member, Patricia H. Birdsall, and advised that the Memorial Service will be held at Rancho Community Church on Saturday, September 30, 2006, at 11 :00 a.m. C. Council Member Comerchero noted that the Fitness in Temecula (F.I.T.) Program has ended and that the next session will begin in the near future. D. Mayor Roberts advised that the International Music and Film Festival and the Concert on the Green was a success. CONSENT CALENDAR 1 Standard Ordinance and Resolution Adoption Procedure RECOMMENDATION: 1.1 Motion to waive the reading text of all ordinances and resolutions included in the agenda. 2 Minutes RECOMMENDATION: 2.1 Approve the minutes of September 12, 2006. 3 Resolution approvinq List of Demands RECOMMENDATION: 3.1 Adopt a resolution entitled: RESOLUTION NO. 06-80 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA ALLOWING CERTAIN CLAIMS AND DEMANDS AS SET FORTH IN EXHIBIT A R:\Minutes\092606 2 4 Termination of the Winchester Hills Financinq Authoritv RECOMMENDATION: 4.1 That the City Council adopt a resolution entitled: RESOLUTION NO. 06-81 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA PROVIDING FOR THE TERMINATION OF THE WINCHESTER HILLS FINANCING AUTHORITY 5 Acceptance of certain Public Streets into the Citv-Maintained Svstem within Tract Map No. 29286 (Located on the southeast corner of Date Street and Marqarita Road RECOMMENDATION: 5.1 Adopt a resolution entitled: RESOLUTION NO. 06-82 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA ACCEPTING CERTAIN PUBLIC STREETS INTO THE CITY-MAINTAINED SYSTEM (WITHIN TRACT NO. 29286) 6 Authorize Temporarv Street Closures for the Annual Temecula Fall Car Show & Old Town Cruise Event (Old Town Front Street. between Moreno Road and Second Street. and other related streets RECOMMENDATION: 6.1 Adopt a resolution entitled: RESOLUTION NO. 06-83 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA AUTHORIZING STREET CLOSURES FOR THE ANNUAL TEMECULA FALL CAR SHOW EVENT, AND AUTHORIZING THE CITY ENGINEER TO ISSUE A PERMIT FOR THIS SPECIFIC SPECIAL EVENT R:\Minutes\092606 3 7 Resolution of Intention to form an Underqround Utilitv District alonq certain seqments of Old Town Front Street. Mercedes Street. and Main Street in Old Town Temecula RECOMMENDATION: 7.1 Adopt a resolution entitled: RESOLUTION NO. 06-84 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA DECLARING ITS INTENTION TO ESTABLISH UNDERGROUND UTILITY DISTRICT NO.2 AND ORDER THE REMOVAL OF OVERHEAD UTILITY FACILITIES AND THE INSTALLATION OF UNDERGROUND FACILITIES WITHIN SAID DISTRICT 8 Award the Construction Contract for Project No. PW06-08 Citvwide Concrete Repairs - Phase I Fiscal Year 2006-2007 RECOMMENDATION: 8.1 Award a construction contract for Project No. PW06-08, Citywide Concrete Repairs - Phase I Fiscal Year 2006-2007, to Victor Concrete in the amount of $102,300 and authorize the Mayor to execute the contract. 8.2 Authorize the City Manager to approve change orders not to exceed the contingency amount of $10,230, which is equal to 10% of the contract amount. 9 Second Readinq of Ordinance No. 06-10 RECOMMENDATION: 9.1 Adopt an Ordinance entitled: ORDINANCE NO. 06-10 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TEMECULA APPROVING THE FIRST AMENDMENT TO DEVELOPMENT AGREEMENT BETWEEN THE CITY OF TEMECULA AND TEMECULA TOWN CENTER ASSOCIATES, L.P. R:\Minutes\092606 4 10 Second Readinq of Ordinance No. 06-11 RECOMMENDATION: 10.1 Adopt an Ordinance entitled: ORDINANCE NO. 06-11 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TEMECULA AMENDING CERTAIN TIME LIMITATIONS WITH RESPECT TO THE TEMECULA REDEVELOPMENT PLAN 1-1988 PURSUANT TO THE PROVISIONS OF HEALTH AND SAFETY CODE SECTION 33333.6 MOTION: Council Member Comerchero moved to approve the Consent Calendar. Council Member Edwards seconded the motion and electronic vote reflected unanimous approval. At 7:29 p.m., the City Council convened as the Temecula Community Services District and the Temecula Redevelopment Agency. The City Council resumed with regular business at 7:34 p.m. RECONVENE TEMECULA CITY COUNCIL PUBLIC HEARING 20 Development Code Amendment to allow Minor Weekend Promotional Events for Automobile and Truck Dealerships (PA06-0258) RECOMMENDATION: 20.1 Introduce and read by title only an ordinance entitled: ORDINANCE NO. 06-12 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TEMECULA AMENDING CHAPTER 17.04 OF THE TEMECULA MUNICIPAL CODE TO ALLOW MINOR WEEKEND PROMOTIONAL EVENTS FOR AUTOMOBILE AND TRUCK DEALERSHIPS Principal Planner Brown provided a staff report (of written material), noting that the Planning Commission recommended staff approval subject to a three-year Sunset Clause. In response to the City Council, City Attorney Thorson stated that the updated ordinance (copies submitted to the Council) would retain Section 17.04.020 with regard to the Sunset Clause. City Manager Nelson advised that the Planning Commission's vote with regard to the Sunset Clause was unanimous. Principal Planner Brown noted that thus far, there have only been a few written warnings issued by Code Enforcement to dealerships and noted that they were responsive. At this time, the public hearing was opened. R:\Minutes\092606 5 Mr. Isaac Lizarraga, applicant, relayed the importance of the proposed Development Code Amendment and stated he would be satisfied with the three-year Sunset Clause as requested by the Planning Commission. At this time, the public hearing was closed. Noting that he would be in agreement of staff's recommendation, Council Member Naggar stated that he would support see the need for a three-year Sunset Clause and requested that penalties for violations be strictly enforced. Concurring with Council Member Naggar's comments, Council Member Edwards noted that she would request that the dealerships continue to police each other. Echoing comments made by Council Member Naggar and Edwards, Council Member Comerchero would request that staff provide monthly reports regarding any violations. Mayor Pro Tem Washing and Mayor Roberts relayed their support for the proposed changes as recommended by staff, but would not be in support of a sunset clause. At this time, City Attorney Thorson introduced and read by only Ordinance No. 06-12. MOTION: Council Member Naggar moved to approve staff recommendation and encouraged use of the civil penalties to address violations. Mayor Pro Tem Washington seconded the motion and electronic vote reflected unanimous approval. 21 Weed Abatement Lien Resolution for FY 2006-2007 Principal Planner Brown provided a staff report (of record), requesting that Parcel No. 945-110- 008 be deleted from staff's report. At this time, the public hearing was opened and due to no speakers, it was closed. MOTION: Mayor Pro Tem Washington moved to approve staff recommendation. Council Member Naggar seconded the motion and electronic vote reflected unanimous approval. RECOMMENDATION: 21.1 Adopt a resolution entitled: RESOLUTION NO. 06-85 A RESOLUTION OF THE CITY COUNCIL OF THE CITY TEMECULA ORDERING CONFIRMATION OF THE SPECIAL ASSESSMENT AGAINST PARCELS OF LAND WITHIN THE CITY OF TEMECULA FOR COSTS OF ABATEMENT AND REMOVAL OF HAZARDOUS VEGETATION FOR THE FISCAL YEAR 2006-2007 DEPARTMENTAL REPORTS 22 Planninq Department Monthlv Report R:\Minutes\092606 6 23 Economic Development Monthlv Report 24 Buildinq and Safetv Department Monthlv Report 25 Public Works Departmental Monthlv Report 26 Police Department Monthlv Report CITY MANAGER REPORT No additional comments. CITY ATTORNEY REPORT With respect to closed session, City Attorney Thorson advised that there was no formal action to report, and advised that Council Member Comerchero did not participate in potential litigation matters due to conflict of interest. ADJOURNMENT At 8:16 p.m., the City Council meeting was formally adjourned to Tuesday, October 10, 2006, at 5:30 p.m., for a Closed Session with the regular session commencing at 7:00 p.m., in the City Council Chambers, 43200 Business Park Drive, Temecula, California. Ron Roberts, Mayor ATTEST: Susan W. Jones, MMC City Clerk R:\Minutes\092606 7 MINUTES OF A REGULAR MEETING OF THE TEMECULA CITY COUNCIL OCTOBER 10, 2006 The City Council convened in Closed Session at 6:00 p.m. and its regular meeting commenced at 7:02 P.M., on Tuesday, October 10, 2006, in the City Council Chambers of Temecula City Hall, 43200 Business Park Drive, Temecula, California. Present: 5 Council Members: Comerchero, Edwards, Naggar, Washington, and Mayor Roberts. Absent: o Council Members: None. PRELUDE MUSIC The Prelude Music was provided by Susan Miyamoto. INVOCATION The invocation was given by Pastor Bob Branch of The Springs Community Church. PLEDGE OF ALLEGIANCE The pledge of allegiance was presented by Mayor Pro Tem Washington. PRESENTA TIONS/PROCLAMA TIONS Expressing deep gratitude for Assistant City Manager O'Grady's leadership, devotion, and service provided to the City of Temecula, Mayor Roberts, on behalf of the City Council of the City of Temecula, congratulated Jim on his retirement and proclaimed October 10'h, 2006, to be Jim O'Grady Day. On behalf of Congressman Issa's office, Mr. Phil Polly presented Mr. O'Grady with a certificate of appreciation. Recognizing and honoring Mr. O'Grady for his years of service to the City of Temecula, County Supervisor Stone presented him with a proclamation. Presenting Mr. O'Grady with a proclamation, Mayor Seyarto representing the City of Murrieta, relayed his appreciation for Jim's professionalism in his representation of the City of Temecula. In appreciation for the recognition and many kind words, Mr. O'Grady expressed his sincere gratitude for the proclamations and certificates. R:\Minutes\101006 PUBLIC COMMENTS A. Ms. Pauline McCauley, Murrieta, representing Valley of the Mist Quitters Guild, cordially invited the Council and public to attend its 8th Annual Quilt Show, on October 14, 2006, in Old Town, Temecula. Ms. McCauley thanked Director of Redevelopment Meyer, Administrative Assistant Syers, Promoting and Marketing Consultant Brunsting, Cultural Arts Administrator Betz, and Theater Manager Beers for their expertise and assistance with the show. CITY COUNCIL REPORTS A. Thanking Mayor Seyarto for his years of service to the City of Murrieta, Council Member Naggar relayed his appreciation. B. Wishing Mayor Seyarto best wishes, Mayor Pro Tem Washington also honored Mayor Seyarto and his accomplishments. Mayor Pro Tem Washington advised of the upcoming Theater Foundation Second Annual Gala, on October 19, 2006, at the Old Town Temecula Community Theater, and relayed that more information may be obtained by calling 951-699-6820. It was also relayed by Mayor Pro Tem Washington that the 8th Annual Susan G. Komen Foundation, Race for the Cure Event, will be held on Sunday, October 15, 2006, at the Promenade Mall. C. Referencing Mr. O'Grady's accomplishments and devotion to the City of Temecula, Council Member Edwards noted her appreciation for Mr. O'Grady's contribution to the City. D. Council Member Comerchero announced that the Children's Museum will be holding many Halloween events and encouraged the public to attend. Council Member Comerchero also extended his wishes to Mayor Seyarto. E. Mayor Roberts extended his wishes to Mayor Seyarto and thanked him for his years of service to the City of Murrieta. Mayor Roberts thanked Weebelos Pack No. 301 for their attendance and encouraged them to strive for the rank of Eagle Scout. CONSENT CALENDAR 1 Standard Ordinance and Resolution Adoption Procedure RECOMMENDATION: 1 .1 Motion to waive the reading of the text of all ordinances and resolutions included in the agenda. R:\Minutes\101006 2 2 Resolution approvinq List of Demands RECOMMENDATION: 2.1 Adopt a resolution entitled: RESOLUTION NO. 06-87 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA ALLOWING CERTAIN CLAIMS AND DEMANDS AS SET FORTH IN EXHIBIT A 3 Citv Treasurer's Report as of Auqust 31. 2006 RECOMMENDATION: 3.1 That the City Council receive and file the City Treasurer's Report as of August 31, 2006. 4 Review of Citv Conflict of Interest Code RECOMMENDATION: 4.1 Adopt a resolution entitled: RESOLUTION NO. 06-88 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA AMENDING THE CITY'S CONFLICT OF INTEREST CODE 5 Holidav Meetinq Schedule RECOMMENDATION: 5.1 Direct the City Clerk to cancel the meeting of December 26, 2006, and to perform the appropriate postings and noticing requirements of the Government Code. 6 Authorize Temporarv Partial Street Closures for "Race for the Cure" Event October 15. 2006. in the Promenade Mall area (Marqarita Road. Overland Drive. Ynez Road. and Solana Wav) RECOMMENDATION: 6.1 Adopt a resolution entitled: RESOLUTION NO. 06-89 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA, AUTHORIZING PARTIAL STREET CLOSURES FOR INLAND EMPIRE "RACE FOR THE CURE" EVENT ON OCTOBER 15,2006 AND AUTHORIZING THE CITY ENGINEER TO ISSUE PERMITS FOR THIS SPECIFIC SPECIAL EVENT R:\Minutes\101006 3 7 Diaz Road Realiqnment - Phase II - Project No. PW95-27 - Approval of the Plans and Specifications and authorization to solicit Construction Bids RECOMMENDATION: 7.1 Approve the Plans and Specifications and authorize the Department of Public Works to solicit construction bids for Diaz Road Realignment, Phase II, Project No. PW95-27. 8 Completion and Acceptance for Bridqe Fencinq at Rancho California Road Overcrossinq and Overland Drive Overcrossinq at Interstate 15 - Project No. PW05-09 RECOMMENDATION: 8.1 Accept the Bridge Fencing at Rancho California Road Overcrossing Bridge and Overland Drive Overcrossing Bridge at Interstate 15 - Project No. PW05-09 - as complete; 8.2 File a Notice of Completion, release the Performance Bond, and accept a one-year Maintenance Bond in the amount of 10% of the contract amount; 8.3 Release the Materials and Labor Bond seven (7) months after filing of the Notice of Completion, if no liens have been filed. 9 Food and Beveraqe Sales Aqreement between the Citv of Temecula and C & E Concessionarv Enterprises. Inc. for the Patricia H. Birdsall Sports Park RECOMMENDATION: 9.1 Approve the Food and Beverage Sales Agreement Between the City of Temecula and C & E Concessionary Enterprises, Inc. for the Patricia H. Birdsall Sports Park. 10 Second Readinq of Ordinance No. 06-12 RECOMMENDATION: 10.1 Adopt an Ordinance entitled: ORDINANCE NO. 06-12 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TEMECULA AMENDING CHAPTER 17.04 OF THE TEMECULA MUNICIPAL CODE TO ALLOW MINOR WEEKEND PROMOTIONAL EVENTS FOR AUTOMOBILE AND TRUCK DEALERSHIPS MOTION: Council Member Comerchero moved to approve the Consent Calendar. Mayor Pro Tem Washington seconded the motion and electronic vote reflected unanimous approval. R:\Minutes\101006 4 At 7:34 p.m., the City Council convened as the Temecula Community Services District and the Temecula Redevelopment Agency. The City Council resumed with regular business at 7:37 p.m. RECONVENE TEMECULA CITY COUNCIL PUBLIC HEARING 14 Resolution of Formation - forminq an Underqround Utilitv District alonq certain seqments of Old Town Front Street. Mercedes Street. and Main Street in Old Town Temecula RECOMMENDATION: 14.1 Adopt a resolution entitled: RESOLUTION NO. 06-90 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA ESTABLISHING UNDERGROUND UTILITY DISTRICT NO.2 AND ORDERING REMOVAL OF OVERHEAD UTILITY FACILITIES AND INSTALLATION OF UNDERGROUND FACILITIES WITHIN SAID DISTRICT By way of a PowerPoint presentation, Principal Engineer Butler provided a staff report (as written record). At this time, the public hearing was opened and due to no speakers, it was closed. MOTION: Council Member Comerchero moved to approve staff recommendation. Mayor Pro Tem Washington seconded the motion and electronic vote reflected unanimous approval. COUNCIL BUSINESS 15 Communitv Services Commission Appointments RECOMMENDATION: 15.1 Appoint two applicants to serve full three-year terms on the Community Services Commission through October 10, 2009. Due to a conflict of interest, Council Member Edwards abstained from this matter. City Clerk Jones provided the City Council with a staff report (of record). MOTION: Mayor Pro Tem moved to approve the reappointment of Tom Edwards and Charlotte Fox to the Community Services Commission. Council Member Comerchero seconded the motion and electronic vote reflected approval with the exception of Council Member Edwards who abstained. CITY MANAGER REPORT No additional comment. R:\Minutes\101006 5 CITY ATTORNEY REPORT With respect to closed session, City Attorney Thorson advised that there was no formal action to report. ADJOURNMENT At 7:48 p.m., the City Council meeting formally adjourned to Tuesday, October 24, 2006, at 5:30 p.m., for a Closed Session with the regular session commencing at 7:00 p.m., in the City Council Chambers, 43200 Business Park Drive, Temecula, California. Ron Roberts, Mayor ATTEST: Susan W. Jones, MMC City Clerk R:\Minutes\101006 6 ITEM NO.3 Approvals City Attorney Director of Finance City Manager JAt.r- 11/2 yt;- CITY OF TEMECULA AGENDA REPORT TO: City Manager/City Council FROM: Genie Roberts, Director of Finance DATE: November 14, 2006 SUBJECT: List of Demands PREPARED BY: Pascale Brown, Accounting Manager Jose Alvarez, 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 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 List of Demands RESOLUTION NO. 06- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA ALLOWING CERTAIN CLAIMS AND DEMANDS AS SET FORTH IN EXHIBIT A 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 $5,063,591.71. 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 14 day of November , 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 14 day of November, 2006, by the following vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: ABSTAIN: COUNCIL MEMBERS: Susan W. Jones, MMC City Clerk I !oF TEMECULA lIST OF DEMANDS I 10/20/2006 TOTAL CHECK RUN: 10/27/2006 TOTAL CHECK RUN: I II02/2006 TOTAL CHECK RUN: I OII 9/2006 TOTAL PAYROLL RUN: I II02/2006 TOTAL PAYROLL RUN: TOTAL LIST OF DEMANDS FOR 11/14/06 COUNCIL MEETING: DISBURSEMENTS BY FUND: CHECKS: 001 165 190 192 193 194 196 210 280 300 310 320 330 340 460 001 165 190 192 193 194 196 210 280 300 320 330 340 GENERAL FUND RDA LOW/MOD - 20% SET ASIDE TEMECULA COMMUNITY SERVICES DISTRICT TCSD SERVICE LEVEL B TCSD SERVICE LEVEL"C" LANDSCAPE/SLOPE TCSD SERVICE LEVEL D TCSD SERVICE LEVEL "L" LAKE PARK MAINT. CAPITAL IMPROVEMENT PROJECTS FUND REDEVELOPMENT AGENCY - CIP PROJECT INSURANCE FUND VEHICLES FUND INFORMATION SYSTEMS SUPPORT SERVICES FACILITIES CFD 88-12 DEBT SERVICE FUND GENERAL FUND RDA LOW/MOD - 20% SET ASIDE TEMECULA COMMUNITY SERVICES DISTRICT TCSD SERVICE LEVEL B TCSD SERVICE LEVEL"C" LANDSCAPE/SLOPE TCSD SERVICE LEVEL D TCSD SERVICE LEVEL "L" LAKE PARK MAINT. CAPITAL IMPROVEMENT PROJECTS FUND REDEVELOPMENT AGENCY - CIP PROJECT INSURANCE FUND INFORMATION SYSTEMS SUPPORT SERVICES FACILITIES $ 1,343,327.87 34,335.12 309,132.14 53,513.52 44,148.87 2,342.36 6,772.62 2,205,883.55 31,907.28 11,451.46 14,371.83 92,347.04 10,537.94 19,592.14 23.00 $ $ 597,332.36 11,688.67 176,994.50 231.78 10,040.98 1,700.84 1,159.89 448.61 6,275.38 2,428.79 50,441.22 7,292.68 17,869.27 $ 1,266,884.81 2,118,211.25 794,590.68 441,366.80 442,538.17 $ 5,063,591. 71 4,1 79,686.74 TOTAL BY FUND: 883,904.97 5,063,591. 71 $ apChkLst Final Check List Page: 1 10/1912006 1:02:28PM CITY OF TEMECULA Bank: union UNION BANK OF CALIFORNIA Check # Date Vendor Description Amount Paid Check Total 759 10/19/2006 000444 INSTATAX (EDD) State Disability Ins Payment 21,835.D2 21,835.02 760 10/19/2006 000283 INSTATAX (IRS) Federal Income Taxes Payment 85,553.92 85,553.92 761 10/19/2006 001065 NATIONWIDE RETIREMENT Nationwide Retirement Payment 19,983.56 19,983.56 SOLUTION 762 10/19/2006 000246 PERS (EMPLOYEES' PERS ER Paid Member Contr Payment 111,792.93 111,792.93 RETIREMENT) 763 10/19/2006 000389 U S C M WEST (OBRA), OBRA - Project Retirement Payment 3,252.28 3,252.28 NATIONWIDE RETIREMENT 111013 10/12/2006 010470 BED BATH & BEYOND Retirement gift from employee 731.29 731.29 111014 10/19/2006 006046 ACT EVA Regist:C&\IA Cf:1916826:10/24-27 495.00 495.00 111015 10/19/2006 004765 ACTIVE NETWORK INC, THE Refund:M.Zubrick:Fairytale Dance Class 84.00 Refund:M.Dempsey: Parenting Wrkshp 30.00 Refund:E.Robinson: Fairytale Dance 12.00 Refund:T.Holstein: Fairytale Dance Class 12.00 Refund:M. O'Coyne:Fairytale Dance 12.00 Refund:M.Lozano:Fairytale Dance 12.00 Refund:I.Caronan: Fairytale Dance 12.00 Refund:A.Womack:Fairytale Dance 12.00 186.00 111016 10/19/2006 008552 ADKINS DESIGN CONSULTING Theater brochure design & printing 1,571.29 1,571.29 111017 10/19/2006 009896 ADVANCED INFRASTRUCTURE Sept traffic GIS data based 1,116.50 1,116.50 MGMT 111018 10/19/2006 003951 ALL AMERICAN ASPHALT Add'l wrk:Rdhwk asphalt st repairs 49,499.53 49,499.53 111019 10/19/2006 009374 ALLEGRO MUSICAL VENTURES Theater piano tuning/maintain svcs 135.00 135.00 111020 10/19/2006 006915 ALLIE'S PARTY EQUIPMENT Hot Summer Nights equip rental 386.42 Hot Summer Nights equip rental 342.12 728.54 111021 10/19/2006 008595 AMERICAN INTL GROUP INC Workers' Comp October 2006 36,384.00 36,384.00 111022 10/19/2006 004431 AMERICAN PAYROLL INSTITUTE Regist:Payroll Yr-End12007 Cf:11/15:MJ 359.00 359.00 INC Page:1 apChkLst Final Check List Page: 2 10/1912006 1:02:28PM CITY OF TEMECULA Bank: union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 111023 10/19/2006 000936 AMERICAN RED CROSS Lifeguard training supplies:Aquatics 8.00 8.00 111024 10/19/2006 008279 AMERICOMP IN FOSYSTEMS INC Library computer equip:Vert. Pwr Strips 1,697.06 Library computer equip:SX Trans 405.86 Computer Supplies: 512MB DDR 80.81 2,183.73 111025 10/19/2006 000101 APPLE ONE INC Temp help PPE 9130 Gonzales 655.20 Temp help PPE 9/30 Hoenig 430.68 1,085.88 111026 10/19/2006 008314 AQUATIC DESIGN GROUP DesignTES SWimming pool 12,750.00 Reimb expensesTES pool desgn 34.63 12,784.63 111027 10/19/2006 010475 ARRIAGA, MARTHA Refund: Fairy tale Princess Dance Class 12.00 12.00 111028 10/19/2006 010085 ARROW PRINTING INC Int'I Art Exhibition Invitations 1,282.23 1,282.23 111029 10/19/2006 003376 ARTS COUNCIL, THE Community cultural arts grant 10,000.00 10,000.00 111030 10/19/2006 000475 B N I PUBLICATIONS INC Manual: PW Draws/Plans & Caltrans 1,008.13 1,008.13 111031 10/19/2006 004855 BABER, GABRIELE TCSD instructor earnings 386.26 TCSD instructor earnings 373.80 760.06 111032 10/19/2006 010484 BAKER MOTIVATION, INC. Refund: Security Depst: MPSC 150.00 150.00 111033 10/19/2006 010471 BEASLEY, STACY Refund: Creative Beginnings 72.00 72. 00 111034 10/19/2006 002541 BECKER CONSTRUCTION SRVS R&R erosion cntrl bags:79S & Front St 3,735.00 3,735.00 INC 111035 10/19/2006 010483 BELDEN, ANTHONY Refund: Security Depst: Picnic Shelter 150.00 150.00 111036 10/19/2006 005716 BIRTH CHOICE OF TEMECULA FY 06/07 Comm Svc Grant Funds 1,000.00 1,000.00 111037 10/19/2006 000128 BROWN & BROWN OF CALIF INC Insurance policy update:Adding Fire Stn 8,086.00 Insurance policy update:Adding EDP 375.00 8,461.00 111038 10/19/2006 005142 BUCKLEY, TIMOTHY Reimb: EMS Expo:9/26-29:Las Vegas 317.58 317.58 111039 10/19/2006 006908 C C & COMPANY INC Old Town halloween costumes rentals 1,200.00 Hot Summer Nights entertainment 500.00 EntertainmentRace for the Cure Event 300.00 2,000.00 Page2 apChkLst Final Check List Page: 3 10/1912006 1:02:28PM CITY OF TEMECULA Bank: union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 111040 10/19/2006 010474 CABICO, ARIELLE Refund: Teen Excursion-Knott's Scary 35.00 35.00 111041 10/19/2006 003138 CAL MAT PW patch truck materials 283.56 283.56 111042 10/19/2006 010349 CALIF DEPT OF CHILD SUPPORT Support Payment Case # DF099118 25.00 25.00 111043 10/19/2006 004228 CAMERON WELDING SUPPLY Helium tanks rental/refill:TCSD 50.79 Helium tanks rental/refill:TCSD 38.40 89.19 111044 10/19/2006 009839 CAMPBELL, REBECCA Refund: Fairy tale Princess Dance Class 12.00 12.00 111045 10/19/2006 010434 CATERERS CAFE refreshments:High Hopes event 1,288.68 1,288.68 111046 10/19/2006 000137 CHEVRON USA INC Fuel for Police vehicles 1,070.10 Fuel for CM/Police vehicles 397.66 1,467.76 111047 10/19/2006 005585 CHING, MARIA Reimb: CACEO Conf:10/4-7:Seaside 457.16 457.16 111048 10/19/2006 004210 CIRCUIT CrTY Television w/mounts: Police mall 533.80 533.80 111049 10/19/2006 005319 COMMUNITY CHURCH OF THE Refund: Security Depst: Amphitheater 150.00 150.00 VLLY 111050 10/19/2006 004405 COMMUNITY HEALTH CHARITIES Community Health Charities Payment 150.00 150.00 111051 10/19/2006 001193 COMP USA INC Childrens software for library 805.32 805.32 111052 10/19/2006 000442 COMPUTER ALERT SYSTEMS 9/26/06 elevator fire test: Theater 65.00 65.00 111053 10/19/2006 001264 COSTCO WHOLESALE supplies for theater events 45.97 45.97 111054 10/19/2006 006954 CRAFTSMEN PLUMBING & HVAC Plumbing repairs @ Fire Stn 84 95.00 95.00 111055 10/19/2006 007442 DAYS INN Htl:Child Safety Tech Trng:10/26-31 798.48 798.48 111056 10/19/2006 002701 DIVERSIFIED RISK Sept special events premiums 1,018.82 1,018.82 111057 10/19/2006 009728 DRAUGHON, TAMMY Refund: Fairy tale Princess Dance Class 12.00 12.00 Page:3 apChkLst Final Check List Page: 4 10/1912006 1:02:28PM CITY OF TEMECULA Bank: union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 111058 10/19/2006 002528 EAGLE GRAPHIC CREATIONS 4-New employee glass mugs 64.11 64.11 INC 111059 10/19/2006 008704 EDVVARDS,MARYANN Reimb: NLC Human Devel:9/14-16/06 74.00 74.00 111060 10/19/2006 000164 ESGIL CORPORATION Sept plan ck svcs:Building & Safety 29,358.17 29,358.17 111061 10/19/2006 010479 ETTER, DEBORAH Refund: Notary Public Seminar 65.00 65.00 111062 10/19/2006 001056 EXCEL LANDSCAPE Slope Irrigation Repairs 254.73 254.73 111063 10/19/2006 010018 EXECUTIVE CHAIR INC 4 Freedom Office Chairs: B&S 1,960.00 1,960.00 111064 10/19/2006 006902 FAN ENE, LYNN Reimb:C.P.OAConf:9/26-29:San Mateo 968.26 968.26 111065 10/19/2006 000478 FAST SIGNS Halloween Carnival 2006 signs 74.85 74.85 111066 10/19/2006 004000 FENCING BY ACREY INC Res Imp Prgm: Gonzalez, Maggie & David 2,473.00 2,473.00 111067 10/19/2006 010463 FETZER, LELAND ALVIN 10/5 T.Museum Guest Lecture 50.00 50.00 111068 10/19/2006 003747 FINE ARTS NETWORK Theater ticket sales: A Chorus Line 14,740.00 14,740.00 Page:4 apChkLst Final Check List Page: 5 10/1912006 1:02:28PM CITY OF TEMECULA Bank: union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 111069 10/19/2006 003347 FIRST BANKCARD CENTER M M S RACING INC WH Depstfor 12f7 Team Bldg 850.00 MARRIOTT HOTEL SN Hotel:League Ann'l Conf:9/6-8/06 735.26 HYATT SJ Hotel:Ann'l League Cf:9/6-9/06 582.96 LEAGUE OF CALIF CITIES SN RegistCM Ann'l Conf:2/7-9/07 500.00 NATIONAL LEAGUE OF CITIES ME Regist:NLC Ann'l Cf:12/5-9/06 440.00 CALIF REDEVELOPMENT ASSN JM Regist:CRA Intr RDA:Watson:9127-28 355.00 MARRIOTT HOTEL SJ Hotel:SIRE Cf:Ballreich:9/19-22 330.21 FRY'S ELECTRONICS TT Computer equip:Library storage units 328.62 HILTON ME Hotel:Human Devel Conf:9/14-15 272.16 SEARS ROEBUCK & CO SJ Small refrigerator for records mgnt 155.15 HILTON JM Hotel:CRA Intr RDA:Watson:9/27-28 129.11 FRANKLIN QUEST COMPANY INC SJ City Clerk's Day timer supplies 122.54 GOURMET ITALlA JO Refreshments:Undergrounding Utilities 107.43 BARNES AND NOBLE STORE TT Computer Web manuals 106.65 ARRIBA GRILL JM Refreshments: Old Twn Prkg study Mtg 72.02 DEMEDICI SN Meal:League Ann'l Conf:9/6-B106 59.61 AMAZON.COM,INC TT computer manuals:MS SQL 59.38 KARL STRAUSS CARLS BAD TT Refreshments:Carlsbad Library tour 39.51 TREO CENTRAL STORE TT Treo Holster for Council Member 27.90 ONTARIO AIRPORT ME Prkg:Human Devel Conf:9/14-15 27.00 PA YPAL TT Veri sign Payflow Pro Transaction 24.30 STARBUCKS CORPORATION JO Refreshments:ACM Interview Panel 24.00 NATIONAL NOTARY SJ Credit Overcharged NNA -39.00 5,309.81 ASSOCIATION 111070 10/19/2006 002982 FRANCHISE TAX BOARD Support Pmt Case #573332729=$45.77 120.77 120.77 111071 10/19/2006 000170 FRANKLIN QUEST COMPANY INC 2007 Franklin Day Planner Calendars 1,216.35 1,216.35 PageS apChkLst Final Check List Page: 6 10/1912006 1:02:28PM CITY OF TEMECULA Bank: union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 111072 10/19/2006 007866 G C S SUPPLIES INC Printer toner supplies:Citywide 1,800.99 Printer toner supplies:Citywide 878.98 Printer toner supplies:Citywide 199.98 Printer toner supplies:Citywide 136.00 3,015.95 111073 10/19/2006 009608 GOLDEN VALLEY MUSIC Theater ticket sales: More Mozart 1,362.91 1,362.91 SOCIETY 111074 10/19/2006 010476 GROSSMAN, JULIET Refund: Fairy tale Princess Dance Class 12.00 12.00 111075 10/19/2006 008245 GROVE, JEFF Reimb: CACEO Conf:10/4-7:Seaside 519.78 519.78 111076 10/19/2006 004053 HABITAT WEST INC Biological svcs:Long Canyon Basin 554.00 554.00 111077 10/19/2006 010482 HARVEY, MICHAEL Refund: Fairy tale Princess Dance Class 12.00 12.00 111078 10/19/2006 010480 HATFIELD, DAWN Refund: Watercolor Techniques Wrkshp 39.00 39.00 111079 10/19/2006 001135 HEALTH POINTE MEDICAL Aug-Sept Pre-employment physicals 290.00 GROUP INC Sept Pre-employment physicals 25.00 315.00 111080 10/19/2006 005748 HODSON, CHERYL A. Support Payment 38.30 38.30 111081 10/19/2006 003198 HOME DEPOT, THE Hardware supplies: PW Mntc 62.50 Hardware supplies: TCSD 44.65 Hardware supplies:TCSD 31.16 138.31 111082 10/19/2006 001517 HORIZON HEALTH confidential EE assistance prgm 858.00 858.00 111083 10/19/2006 005313 HUFFER MANUFACTURING INC Halloween/Harvest festival games 519.00 519.00 111084 10/19/2006 001060 HYATT Htl:CCAPA Cf:10/22-25:GT#323fp2c70 437.61 437.61 111085 10/19/2006 004217 HYDRO TEK COMPANY Pressure washers parts:PW mntc 228.28 228.28 111086 10/19/2006 000194 I C M A RETIREMENT-PLAN I C M A Retirement Trust 457 Payment 12,205.52 12,205.52 303355 111087 10/19/2006 004833 IMPERIAL PAVING COMPANY INC R&R asphalt @ various Citywide locations 53,920.00 Add'l asphalt repairs 2,159.00 56,079.00 Page:6 apChkLst Final Check List Page: 7 10/1912006 1:02:28PM CITY OF TEMECULA Bank: union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 111088 10/19/2006 003266 IRON MOUNTAIN OFFSITE Records mgmt microfilm storage unit 392.10 392.10 111089 10/19/2006 010119 IRS-OIC Sup Pmt Offer#1 000497587 452379267 140.11 140.11 111090 10/19/2006 001186 IRWIN, JOHN TCSD instructor earnings 915.60 915.60 111091 10/19/2006 004884 J & W REDWOOD LUMBER CO Lumber & misc. supplies:PW Mntc crew 124.73 124.73 INC 111092 10/19/2006 004908 JIFFY LUBE 1878 City Vehicle Oil Chg:Bldg & Safety 39.85 City Vehicle Oil Chg:Bldg & Safety 36.50 76.35 111093 10/19/2006 010472 JONES, KRISTINE Claim 2006-531 Settlement release 150.00 150.00 111094 10/19/2006 010478 JUAREZ, IDARIS Refund: Parent & Me Creative Movements 40.00 40.00 111095 10/19/2006 000820 K R W & ASSOCIATES Sept Engineering Plan Ck svcs 3,115.00 3,115.00 111096 10/19/2006 001091 KEYSER MARSTON ASSOCIATES Sept consulting srvcs:RDA real estate 9,006.16 INC Sept consulting srvcs:RDA housing 338.75 9,344.91 111097 10/19/2006 002789 KIMCO STAFFING SERVICES INC Temp help PPE 10/1 Board 617.70 617.70 111098 10/19/2006 007321 KOPP, JON R. (RANDY) October car show PA system svcs 600.00 600.00 111099 10/19/2006 004062 KUSTOM SIGNALS INC Motorcycle L1DAR repair:Police 1,296.45 1,296.45 111100 10/19/2006 010120 L G C INLAND INC Verizon Fiber Optic geotech/material 7,000.00 7,000.00 111101 10/19/2006 006744 LAMAR CORPORATION, THE Oct billboard lease-Old Town 3,130.00 3,130.00 111102 10/19/2006 010360 LASERLOCK SPECIALTIES INC Laser gun holster:police 3,221.73 3,221.73 111103 10/19/2006 000482 LEIGHTON CONSULTING INC Aug prgss:Educ Cntr Geotechnical svcs 6,960.50 6,960.50 111104 10/19/2006 008414 LICITRA, ALDO Reimb: CASQA Cf:9/24-27:Sacramento 373.98 373.98 111105 10/19/2006 003782 MAIN STREET SIGNS misc. signs & supplies:PW Maint 640.04 640.04 Page:? apChkLst Final Check List Page: 8 10/1912006 1:02:28PM CITY OF TEMECULA Bank: union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 111106 10/19/2006 000394 MAINTENANCE Basic Sprvsr Trng:4 PW staff 11/6-7 320.00 320.00 SUPERINTENDENTS 111107 10/19/2006 004141 MAINTEX INC custodial supplies:Park Sites 383.59 custodial supplies:City Hall 383.59 custodial supplies:CRC 199.12 966.30 111108 10/19/2006 004068 MANALlLI, AILEEN TCSD Instructor Earnings 77.00 TCSD Instructor Earnings 22.75 99.75 111109 10/19/2006 001967 MANPOWER TEMPORARY temp help 09/24 SAlDC/JD/NH/SP/BS 1,068.60 SERVICES temp help w/e 10/01 Dankworth 740.80 1,809.40 111110 10/19/2006 000217 MARGARITA OFFICIALS ASSN Sept softball officials svcs 3,780.00 3,780.00 111111 10/19/2006 002693 MATROS, ANDREA TCSD Instructor Earnings 168.00 TCSD Instructor Earnings 84.00 252.00 111112 10/19/2006 010477 MEYER, STACY refund:Fairytale Princess Dance Class 12.00 12.00 111113 10/19/2006 004894 MICHAEL BRANDMAN 5/13-6/16/06 eng svcs:Pech.Pkwy phil 3,206.02 3,206.02 ASSOCIATES 111114 10/19/2006 007210 MIDORI GARDENS irrigation repairs:Paseo Galante Park 359.29 359.29 111115 10/19/2006 007669 MILES, KATRINA TCSD Instructor Earnings 245.00 245.00 111116 10/19/2006 008091 MILLMORE'S WAA CREW City vehicles detailing svcs:Bldg & 100.00 City vehicles detailing svcs:PW Depts 75.00 175.00 111117 10/19/2006 006077 NTH GENERATION COMPUTING 50% depositllLM system:lnfo System 25,040.50 25,040.50 INC 111118 10/19/2006 009793 NATIONAL BUSINESS security srvcs:Hot Summer Nights 8/11 500.00 500.00 111119 10/19/2006 004512 NINYO & MOORE Aug prof svcs:79S Medians 2,477.50 2,477.50 111120 10/19/2006 002139 NORTH COUNTY TIMES Sep display ads Theater 1,682.09 Sep display adsTCSD/RDAlCity Clerk 1,253.25 2,935.34 111121 10/19/2006 002292 OASIS VENDING Oct coffeelkitchen supplies:City Hall 392.66 Oct coffee/kitchen supplies:Maint Fac 77.58 470.24 111122 10/19/2006 002100 OBJECT RADIANCE INC TCSD Instructor Earnings 462.00 TCSD Instructor Earnings 252.00 714.00 Page:8 apChkLst Final Check List Page: 9 10/1912006 1:02:28PM CITY OF TEMECULA Bank: union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 111123 10/19/2006 002105 OLD TOWN TIRE & SERVICE City Vehicle RepairlMaint Svcs 363.50 City Vehicle Repair/Maint SVcs 15.00 City Vehicle Repair/Maint SVcs 10.00 388.50 111124 10/19/2006 004538 PAULEY EQUIPMENT COMPANY Utility vehicle:Police 9,913.00 9,913.00 111125 10/19/2006 001958 PERS LONG TERM CARE PERS Long Term Care Payment 288.55 288.55 PROGRAM 111126 10/19/2006 004605 PERSONAL TOUCH CATERING refreshments:J O'Grady retirement 10/9 409.45 409.45 111127 10/19/2006 000249 PETTY CASH Petty Cash Reimbursement 591.21 591.21 111128 10/19/2006 010485 PFERSCHY, NANCI refund:Picnic shltr/Harveston Prk 205.00 205.00 111129 10/19/2006 010481 PINA, MARIA refund:Picnic Shltr/Mdws Prk 55.00 55.00 111130 10/19/2006 009161 POLETTI, GUSTAVO TCSD Instructor Earnings 220.50 TCSD Instructor Earnings 98.00 318.50 111131 10/19/2006 000252 POL YCRAFT INC 14" City seals for public works dept 189.91 189.91 111132 10/19/2006 000253 POSTMASTER Express Mail & Postal Svcs 58.80 58.80 111133 10/19/2006 004029 R J M DESIGN GROUP INC Mar dsgn svcs:P.B.Sprts Cmplx 7,768.65 Feb dsgn svcs:P.B.Sprts Cmplx 4,590.00 May dsgn svcs:P.B.Sprts Cmplx 4,590.00 Jan dsgn svcs:P.B.Sprts Cmplx 3,825.00 Apr dsgn svcs:P.B. Sprts Cmplx 3,570.00 Jun dsgn svcs:P.B.Sprts Cmplx 1,275.00 Aug consultant svcs:Redhawk Park 350.00 25,968.65 111134 10/19/2006 004457 R J NOBLE COMPANY T ensar: Rancho Cal prjt 2,909.48 2,909.48 111135 10/19/2006 000262 RANCHO CALIF WATER DISTRICT Various Water Meters 26,842.55 Various Water Meters 431.66 Sep 01-00-93023-1 Ynez Rd 335.79 Sep 01-00-50011-0 79S Medians 168.55 Various Water Meters 67.17 Sept 01-00-93022-1 Ynez Rd 55.30 27,901.02 111136 10/19/2006 002654 RANCHO FORD LINCOLN '06 Cargo Van:lnfo SyslCity Clerk 14,371.83 14,371.83 MERCURY Page:9 apChkLst Final Check List Page: 10 10/1912006 1:02:28PM CITY OF TEMECULA Bank: union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 111137 10/19/2006 004584 REGENCY LIGHTING Sept electrical supplies:C. Mus/CRC 424.62 424.62 111138 10/19/2006 003591 RENES COMMERCIAL R-O-W cleanup/weed abate:Citywide 5,000.00 5,000.00 MANAGEMENT 111139 10/19/2006 002110 RENTAL SERVICE equipment rental:PW Maint 34.27 34.27 CORPORATION 111140 10/19/2006 004498 REPUBLIC INTELLIGENT furnish/install traf sgnl pullboxes 1,746.00 on-call traffic signal maint:R.C.lMarg 1,548.75 on-call traffic signal maint:Marg/Mdws 929.25 4,224.00 111141 10/19/2006 000352 RIVERSIDE CO ASSESSOR Oct assessors maps:Bldg & Safety 45.00 45.00 111142 10/19/2006 001365 RIVERSIDE COUNTY OF renew permit:Paloma Del Sol Park 98.00 renew permit:Harveston Community Park 98.00 renew permit:Temeku Hills Park 98.00 renew permit:R.Vista Snack Bar 98.00 392.00 111143 10/19/2006 003587 RIZZO CONSTRUCTION INC furn/install handicapped 12,156.00 12,156.00 111144 10/19/2006 000278 SAN DIEGO UNION TRIBUNE Sept var. recruitment ads for H.R. 2,289.50 2,289.50 111145 10/19/2006 006815 SAN DIEGO, COUNTY OF Support Payment Acct # 581 095025 12.50 12.50 111146 10/19/2006 000793 SCANT RON FPC CORPORATION scantron forms:Bldg & Safety 1,922.02 1,922.02 111147 10/19/2006 007617 SCIENCE KIT & BOREAL utility cart w/doors & drawers:C.Mus. 437.09 437.09 111148 10/19/2006 008529 SHERIFF'S CIVIL DIV - CENTRAL Support Payment LO File #2005033893 150.00 150.00 111149 10/19/2006 004609 SHREDFORCE INC Sept doc.shredding svcs:Police Mall Stn 24.00 Sep doc. shredding svcs:CRC 22.50 46.50 111150 10/19/2006 008823 SILVER STAR PAINTING Res Imprv Prgm:Crookshank, \l\lilliam 2,530.00 2,530.00 111151 10/19/2006 000645 SMART & FINAL INC mise supplies:C. Museum 205.18 supplies/refreshments: F .IT .51<11 OK 175.16 recreation supplies:MPSC 163.86 supplies/refreshments: F .IT .51<11 OK 119.08 supplies for Halloween Carnival 54.21 supplies/refreshments: F .IT .51<11 OK 49.41 766.90 Page:10 apChklst Final Check List Page: 11 10/1912006 1:02:28PM CITY OF TEMECULA Bank: union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 111152 10/19/2006 000537 SO CALIF EDISON Oct 2-01-202-7330 various mtrs 53,288.67 Oct 2-01-202-7603 various mtrs 20,420.91 Sept 2-00-397-5059 various mtrs 15,760.01 Oct 2-02-351-5281 CRC 8,776.70 Oct 2-26-887-0789 Harveston lake 1,921.91 Oct 2-28-171-2620 Police Mall Stn 605.91 Oct 2-28-624-7176 Harveston 27.64 Oct 2-28-624-7101 Harveston 27.13 100,828.88 111153 10/19/2006 005786 SPRINT 8/15-9/14/06 cell phone usage/equip 8,275.98 8,275.98 111154 10/19/2006 008164 SUN CITY GRANITE INC 4" X 10" X 3/4" pavers for memorial 19,520.58 19,520.58 111155 10/19/2006 000305 TARGET BANK BUS CARD SRVCS misc supplies:Theater 46.94 rec supplies:Teen Pgrm 32.78 misc supplies:Theater 12.00 91.72 111156 10/19/2006 010362 TEMECULA RESTAURANT Kitchen supplies:Fire Stn 73 268.51 268.51 SUPPLY 111157 10/19/2006 000307 TEMECULA TROPHY COMPANY recogn award:J.O'Grady 97.62 recogn award:T.Edwards 83.08 180.70 111158 10/19/2006 009194 TEMECULA VALLEY NEWS Sept display ads:Theater 508.74 508.74 111159 10/19/2006 004056 THANKS COMPANY, THE supplies:MPSC anniversary event 136.50 136.50 111160 10/19/2006 010276 TIME WARNER CABLE - AP 10/10-11/09 internet svcs:City Hall 62.95 62.95 SHARED 111161 10/19/2006 010276 TIME WARNER CABLE - AP 10/15-11/14 internet svcs:Fire Stn 92 46.95 46.95 SHARED 111162 10/19/2006 000668 TIMMY D PRODUCTIONS INC OJ srvcs: Teen dance 9/8 450.00 450.00 111163 10/19/2006 007433 TOVEY SHULTZ CONSTRUCTION Aug prgs pmt #1 :Maint Fac Ops Ctr 328,888.31 328,888.31 INC 111164 10/19/2006 003031 TRAFFIC CONTROL SERVICE INC traffic control devices:PWMaint 310.32 traffic control devices:PW Maint 302.18 traffic control devices:PW Maint 177.25 traffic control devices:PW Maint 97.64 887.39 Page:11 apChkLst Final Check List Page: 12 10/1912006 1:02:28PM CITY OF TEMECULA Bank: union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 111165 10/19/2006 009912 U R S CORPORATION 7/15-8/11/06 eng svcs:W.Bypass ph I 2,520.89 2,520.89 111166 10/19/2006 000325 UNITED WAY United Way Charities Payment 212.15 212.15 111167 10/19/2006 006807 VANIR CONSTRUCTION Aug constr mgmt:W.C.Fire Stn 19,338.21 19,338.21 111168 10/19/2006 010488 VELASCO, ALEJANDRO refund:parking cite #51212 35.00 35.00 111169 10/19/2006 004261 VERIZON Sept var. phones general usage 6,093.87 6,093.87 111170 10/19/2006 004279 VERIZON CALIFORNIA INC. Sep access-C. Mus.phone line 653.50 Sep access-CRC phone line 353.60 1,007.10 111171 10/19/2006 004848 VERIZON SELECT SERVICES INC Sep long distance phone svcs 5.84 5.84 111172 10/19/2006 009101 VISION ONE INC Sep Showare ticketing srvcs:Theater 1,131.20 1,131.20 111173 10/19/2006 007405 WATER SPECIALIST profsvcs:Paloma Del Sol Park 880.00 880.00 CONSULTANTS 111174 10/19/2006 010487 WATSON, LUKE reimb:CRA Cf 9/27-28/06 116.45 116.45 111175 10/19/2006 001342 WAXIE SANITARY SUPPLY INC custodial supplies:C. MuseumfT. Museum 111.90 111.90 111176 10/19/2006 007949 WESTERN ARTS ALLIANCE W.A.A. conf. co-sponsorship 150.00 150.00 111177 10/19/2006 006290 WOODCREST VEHICLE CENTER power supply veh lightbars:PoIice 12,042.50 12,042.50 111178 10/19/2006 010193 WOOLSTENHULME, LUCIA TCSD Instructor Earnings 177.10 177.10 111179 10/19/2006 003776 ZOLL MEDICAL CORPORATION upgrade detibrillators:Paramedics 48,544.41 credit:amount exceeds agreement -160.41 48,384.00 Grand total for UNION BANK OF CALIFORNIA: 1,266,884.81 Page:12 apChkLst Final Check List Page: 1 10/2712006 11:06:19AM CITY OF TEMECULA Bank: union UNION BANK OF CALIFORNIA Check # Date Vendor Description Amount Paid Check Total 764 10/26/2006 000444 INSTATAX (EDD) Unemployment Ins. & Employment Trng 13,975.96 13,975.96 111180 10/27/2006 007759 1ST CHOICE WINDOWS INC Res Imp Prog: Corwin, P. 1,967.00 1,967.00 111181 10/27/2006 008239 4 PAWS TRAINING TCSD instructor earnings 840.00 840.00 111182 10/27/2006 004765 ACTIVE NETWORK INC, THE Refund:Garret, Jeffrey Ballroom Dance 30.00 30.00 111183 10/27/2006 004240 AMERICAN FORENSIC NURSES DUI Drug & Alcohol Screening 108.00 DUI Drug & Alcohol Screening 108.00 216.00 111184 10/27/2006 004446 AMERICAN SOCIETY OF CIVIL ASCE annual mbrshp: Beswick, Steve 250.00 ASCE annual mbrshp: Attar, Amer 250.00 500.00 111185 10/27/2006 002187 ANIMAL FRIENDS OF THE Sep '06 animal control services 12,500.00 12,500.00 VALLEYS 111186 10/27/2006 000101 APPLE ON E INC Temp Help w/e 09130 Arnwine, Regina 600.80 temp help w/e 10/07 Gonzales, Chalena 577.40 Temp Help w/e 10/07 Henry, X 360.48 Temp Help w/e 10/07 Hoenig, Pamela 299.60 1,838.28 111187 10/27/2006 003203 ARTISTIC EMBROIDERY Uniforms:TCSD recreation staff 1,852.22 1,852.22 111188 10/27/2006 002648 AUTO CLUB OF SOUTHERN Membership: Cole, Tom 93773232 47.00 CALIF Membership: Hudson, Mike 018594333 47.00 94.00 111189 10/27/2006 010494 BALE INVESTMENT GROUP, LLC Refund: Ovrpmt offees/42355 Rio Nedo 30.00 30.00 111190 10/27/2006 006908 C C & COMPANY INC Pumpkin Carving:TCC 10/28/06 100.00 100.00 111191 10/27/2006 010495 CABADAS, FRANCISCO Reimb: Facade Sign Program 148.00 148.00 111192 10/27/2006 003138 CAL MAT PW patch truck materials 313.56 PW patch truck materials 285.43 PW patch truck materials 192.94 PW patch truck materials 189.18 981.11 111193 10/27/2006 008597 CALDERON, CARL Reimb:rfrshmnts w/Fire Fighters Donation 56.29 56.29 111194 10/27/2006 009067 CALIF BANK & TRUST Rei Retention Esrw Edge Devel:T.Library 47,735.86 47,735.86 Page:1 apChkLst Final Check List Page: 2 10/2712006 11:06:19AM CITY OF TEMECULA Bank: union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 111195 10/27/2006 000638 CALIF DEPT OF CONSERVATION Jul 06 - Sep 06 Qtr pmt: strong motion 12,675.48 12,675.48 111196 10/27/2006 004248 CALIF DEPT OF JUSTICE- DUI Drug & Alcohol Screening 1,330.00 1,330.00 ACCTING 111197 10/27/2006 001374 CALIF SECRETARY OF STATE CAP Team Corp filing fee:Police 20.00 20.00 111198 10/27/2006 010496 CAVENAUGH & ASSOCIATES DUI Seminar:LaReau, L. 11/13-17/06 425.00 425.00 111199 10/27/2006 010497 CHAFIN, BRIAN Reimb:lntro.Emerg.Mgmt 9/10-15/06 195.89 195.89 111200 10/27/2006 004414 COMMUNITY WORKS DESIGN 07/06-08/06 Plan Ck Insp. 79 S Median 3,384.59 3,384.59 GROUP 111201 10/27/2006 001193 COMP USA INC Computer Equipmentlnfo Systems 503.71 Printer for Children's Museum 264.71 Computer Equipmentlnfo Systems 116.31 884.73 111202 10/27/2006 003006 DEWITT CUSTOM PAINTING Res Imp Prog: Fritz, J. & C. 1,950.00 1,950.00 111203 10/27/2006 003945 DIAMOND ENVIRONMENTAL Portable restroom:Vail Ranch Prk 67.98 SRVCS Portable restroom:Redhawk Prk 59.02 Portable restroom:Veteran's Prk 57.98 Portable restroom: Riverton Park 57.98 Portable restroom: Lng Cyn Prk 57.98 300.94 111204 10/27/2006 004192 DOWNS COMMERCIAL FUELING Fuel for City vehicles:C.M.fTCSD 1,365.02 INC Fuel for City vehicles:PW Maint 1,209.25 Fuel for City vehicles:Bldg & Safety 385.76 Fuel for City vehicles:PW Depts 353.41 Fuel for City vehicles:Code Enf. 130.53 Fuel for City vehicles:CIP 50.33 Fuel for City vehicles:PW Traffic Div 42.67 3,536.97 111205 10/27/2006 006679 DUCHI, SHARON Refund: sec. deposit/CRC rental 313.00 313.00 111206 10/27/2006 000523 EASTERN MUNICIPAL WATER 190304-02 Seraphina Rd 676.30 DIST 95366-02 Diego Dr Ldscp 419.18 1,095.48 111207 10/27/2006 005880 EDGE DEVELOPMENT INC. Sep Prgs Pmt #15 - Library 859,245.70 Ret. reduction 5% - Library 47,735.87 906,981.57 111208 10/27/2006 004592 ELITE BOBCAT SERVICE INC Sep. Prgs No.1 R.Vista Rd Sidewalk 128,531.25 128,531.25 Page2 apChkLst Final Check List Page: 3 10/2712006 11:06:19AM CITY OF TEMECULA Bank: union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 111209 10/27/2006 003665 EXCEL TELECOMMUNICATIONS Sep '06 long distance phone svcs 7.53 7.53 111210 10/27/2006 000206 FEDEX KINKOS INC Office Supplies:Central Services 49.37 49.37 111211 10/27/2006 010361 FITZSIMONS, JOHN Refund:sec. depositl#204B, 41934 Main 150.00 150.00 111212 10/27/2006 010183 FOLKMAN IS INC large pig puppet:Library 9.42 9.42 111213 10/27/2006 005311 H20 CERTIFIED POOL WATER Sep '06 pool srvcs: TES/CRC 900.00 900.00 SPCL. 111214 10/27/2006 004811 HEWLETT PACKARD Server for GIS 5,827.39 5,827.39 111215 10/27/2006 000871 HILTON Fire Rescue Conf. 11/06-11/11 Deyo, B 773.65 773.65 111216 10/27/2006 010210 HOME DEPOT SUPPLY INC, THE Res Imprv Prgm: Casteel, M. 619.75 619.75 111217 10/27/2006 001186 IRWIN, JOHN TCSD instructor earnings 88.20 88.20 111218 10/27/2006 008516 JAMIN ENTERTAINMENT Ent.: Halloween Carnival 10127/06 525.00 525.00 111219 10/27/2006 002575 JONES, SUSAN W Reimb:cell phone charger/case 95.68 95.68 111220 10/27/2006 010173 KAL PACIFIC & ASSOCIATES, INC Refund:OvrpmtlRedhawk Sign Prgm 124.00 124.00 111221 10/27/2006 002789 KIMCO STAFFING SERVICES INC Temp Help w/e 10/08 Board, Margo 648.15 648.15 111222 10/27/2006 009336 KOPIE SHOP LLC printing svcs:Theater Events 398.68 398.68 111223 10/27/2006 010039 LAKE VILLAGE ASSOCIATION Refund:Sec.DepstI30158 La Primavera 102.00 102.00 (347) 111224 10/27/2006 004412 LEANDER, KERRY D. TCSD instructor earnings 313.25 TCSD instructor earnings 302.75 TCSD instructor earnings 252.00 868.00 111225 10/27/2006 009285 LEISURE MORE CORP qty 2000 pet waste bags:Parks 512.90 512.90 Page:3 apChkLst Final Check List Page: 4 10/2712006 11:06:19AM CITY OF TEMECULA Bank: union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 111226 10/27/2006 004312 LENNAR COMMUNTIES Refund:O\ffpmt-916-41G-001/34698 map 3,155.05 3,155.05 111227 10/27/2006 003286 LIBRARY SYSTEMS & SERVICES Aug svcs-library system agrmnt 14,094.80 Jul svcs-library system agrmnt 12,023.31 Sep svcs-library system agrmnt 11,250.00 Aug svcs-library system agrmnt 1,375.08 Sep svcs-library system agrmnt 1,309.60 Jul svcs-library system agrmnt 1,170.46 41,223.25 111228 10/27/2006 003726 LIFE ASSIST INC equipment for Paramedics 2,397.61 2,397.61 111229 10/27/2006 002634 L1TELlNES INC Banners for Old Town Temecula banner 645.34 645.34 111230 10/27/2006 004135 LOGIC COMPUTER PRODUCTS Backup Tapes:lnfo Systems 1,027.83 Backup Tapes for Library 533.40 1,561.23 111231 10/27/2006 006897 LORY, SUSAN, J. TCSD instructor earnings 407.40 TCSD instructor earnings 387.10 TCSD instructor earnings 315.00 TCSD instructor earnings 294.00 TCSD instructor earnings 287.00 TCSD instructor earnings 264.60 TCSD instructor earnings 243.60 TCSD instructor earnings 241.50 TCSD instructor earnings 226.80 TCSD instructor earnings 224.00 TCSD instructor earnings 182.00 TCSD instructor earnings 162.75 TCSD instructor earnings 129.50 TCSD instructor earnings 122.50 TCSD instructor earnings 101.50 3,589.25 111232 10/27/2006 010204 M T G L INC Sep profsvcs:Field Ops Ctr ph II 11,732.00 11,732.00 111233 10/27/2006 001967 MANPOWER TEMPORARY temp help 10/08 D. Cregut 131.12 131.12 SERVICES 111234 10/27/2006 004307 MARINE BIOCHEMISTS Oct water maint:Harveston/Duck Pond 4,855.00 4,855.00 111235 10/27/2006 008091 MILLMORE'S WAA CREW City vehicle detailing svcs:PVV Depts 125.00 125.00 111236 10/27/2006 001384 MINUTEMAN PRESS qty 1000 envelopes:Bldg & Safety 165.61 stationery supplies:TCSD Fac 126.98 business cards: A. Matthews 116.96 409.55 Page:4 apChkLst Final Check List Page: 5 10/2712006 11:06:19AM CITY OF TEMECULA Bank: union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 111237 10/27/2006 001892 MOBILE MODULAR Oct modular bldg rental:Fire stn 92 832.40 832.40 111238 10/27/2006 004238 MURRIETA, CITY OF Murrieta's State of Our City Address 360.00 360.00 111239 10/27/2006 000727 NATIONAL FIRE PROTECTION promotional items:Fire Prevention 1,386.64 1,386.64 ASSN 111240 10/27/2006 008820 NEIGHBORS NEWSPAPER Oct advertising:Old Town events 250.00 250.00 111241 10/27/2006 006721 OFFICEMAX - A BOISE COMPANY Paper Supplies Central Services 2,500.20 Corner for Finance Desk 77.58 office supplies:Finance 72.35 2,650.13 111242 10/27/2006 002105 OLD TOWN TIRE & SERVICE City Vehicle RepairlMaint Svcs 146.19 City Vehicle Repair/Maint SVcs 96.59 City Vehicle Repair/Maint SVcs 43.91 City Vehicle Repair/Maint SVcs 40.48 City Vehicle Repair/Maint SVcs 38.60 365.77 111243 10/27/2006 001171 ORIENTAL TRADING COMPANY SMARTart cart supplies 337.59 INC rec supplies:Teen Pgrm 165.70 503.29 111244 10/27/2006 002297 OVERLAND PACIFIC & CUTLER Sep Consulting:Civic Center Tem-DD? 2,482.50 INC Sep Consulting:Civic Center Tem-DD6 1,912.50 4,395.00 111245 10/27/2006 007591 PAUL LASLO & ASSOCIATES Tote Bags:Tcc Volunteers 1,695.96 magnets:Public Safety Expo event 829.44 2,525.40 111246 10/27/2006 002498 PETRA GEOTECHNICAL INC Aug Prof SVcs:P.B.Sprts Cmplx 4,600.00 Jul Prof Svcs:P.B. Sprts Cmplx 2,130.00 6,730.00 111247 10/27/2006 000249 PETTY CASH Petty Cash Reimbursement 513.43 513.43 111248 10/27/2006 000249 PETTY CASH Petty Cash for Harvest Festival 300.00 300.00 111249 10/27/2006 000580 PHOTO WORKS OF TEMECULA photo storage materials:T. Museum 32.29 32.29 111250 10/27/2006 010338 POOL & ELECTRICAL PRODUCTS pool chemicals: Aquatics 332.48 332.48 INC 111251 10/27/2006 000254 PRESS ENTERPRISE COMPANY Sept display ads:TCSD 722.91 722.91 INC 111252 10/27/2006 003493 PRO-CRAFT Res Imprv Prgm: Sears, Dale and Lynda 1,695.00 1,695.00 PageS apChkLst Final Check List Page: 6 10/2712006 11:06:19AM CITY OF TEMECULA Bank: union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 111253 10/27/2006 000262 RANCHO CALIF WATER DISTRICT Oct Various Water Meters 27,727.53 Oct 01-04-47210-0 T.E.S. Pool 1,695.32 stn 84 Oct Water Meters charges 429.19 29,852.04 111254 10/27/2006 006738 RANCHO COMMUNITY CHURCH Refund:ovrpmt/31300 Rancho Comm.Way 125.00 125.00 111255 10/27/2006 010498 REED ELSEVIER INC Fire Rescue Conf. - 11/7-11/11 Deyo,B 525.00 525.00 111256 10/27/2006 007402 RICHARD BRADY & ASSOCIATES 7/2106-9/2106 dsgn:Field Ops Ctr 11,872.00 9/3/06-9/30/06 dsgn:Field Ops Ctr 11,630.50 23,502.50 111257 10/27/2006 002412 RICHARDS WATSON & GERSHON Aug 2006 legal services 142,755.70 142,755.70 111258 10/27/2006 006483 RICHARDS, TYREOSHA I. TCSD Instructor Earnings 378.00 TCSD Instructor Earnings 122.50 TCSD Instructor Earnings 49.00 549.50 111259 10/27/2006 000418 RIVERSIDE CO CLERK & Res ImplY Prgm:Castaneda, F. &T. 11.00 11.00 RECORDER 111260 10/27/2006 000406 RIVERSIDE CO SHERIFFS DEPT Aug '06 Booking Fees 20,307.51 20,307.51 111261 10/27/2006 000406 RIVERSIDE CO SHERIFFS DEPT Traf.Collision Invest. J.Joyner 9/18-22 156.00 Srch Wrnt Prep/Exec:McDonough 9/28- 86.00 242.00 111262 10/27/2006 000357 RIVERSIDE CO Parcel maps implY plans:PW 44.00 44.00 TRANSPORTATION 111263 10/27/2006 000873 ROBERTS, RONALD H. reimbNLC Trans.Steering Comm.10/12-14 93.00 93.00 111264 10/27/2006 000815 ROWLEY, CATHY TCSD Instructor Earnings 630.00 TCSD Instructor Earnings 441.00 TCSD Instructor Earnings 252.00 TCSD Instructor Earnings 252.00 TCSD Instructor Earnings 252.00 TCSD Instructor Earnings 189.00 TCSD Instructor Earnings 189.00 TCSD Instructor Earnings 126.00 TCSD Instructor Earnings 126.00 TCSD Instructor Earnings 126.00 TCSD Instructor Earnings 63.00 2,646.00 111265 10/27/2006 006365 RUBIN, STEVEN P. TCSD Instructor Earnings 1,470.00 1,470.00 Page:6 apChklst Final Check List Page: 7 10/2712006 11:06:19AM CITY OF TEMECULA Bank: union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 111266 10/27/2006 004598 S T KARCHITECTURE INC Dsgn Svcs:Wolf Creek Fire Stn 2,609.25 2,609.25 111267 10/27/2006 008515 SAM DE FAZIO'S GOODTIME Sr Swing Sensation entertainment 10/27 400.00 400.00 BAND 111268 10/27/2006 004562 SCHIRMER ENGINEERING CORP. Sept plan check:Fire Prey 1,238.25 1,238.25 111269 10/27/2006 010089 SECURITAS SECURITY SRVCS 9/29-10/5/06 Security Svcs:Fire Stn 95 1,334.04 1,334.04 USA 111270 10/27/2006 008823 SILVER STAR PAINTING Res ImplY Prgm: Petricka, Jeff & Tammy 2,460.00 2,460.00 111271 10/27/2006 010492 SKADDEN, ARPS, SLATE, Aug'06Iegalse~ces 2,580.00 2,580.00 MEAGHER 111272 10/27/2006 008927 SMEAL FIRE APPARATUS Final Pmt:Fire Engine Chassis:Fire Stn95 185,084.00 185,084.00 COMPANY 111273 10/27/2006 000537 SO CALIF EDISON Oct 2-25-393-4681 TES Pool 853.11 Oct 2-23-365-5992 Fire Stn 92 557.03 Oct 2-21-981-4720 Hwy 79S 72.35 Oct 2-28-397-1315 Redhawk Pkwy 12.81 1,495.30 111274 10/27/2006 001212 SO CALIF GAS COMPANY Oct City facilities gas meter charges 164.20 Oct 095-167-7907-2 Fire Stn 84 124.77 Oct 101-525-0950-0TCC 58.60 347.57 111275 10/27/2006 000519 SOUTH COUNTY PEST CONTROL pest control svcs:C.H.lM.F.fT.MusIW.C. 170.00 170.00 INC 111276 10/27/2006 009922 SPEHAR TEMECULA CENTER, LP refund:eng deposit/31771 R.Calif.Rd 995.00 995.00 111277 10/27/2006 005786 SPRINT Oct Acct level Chrgs 31.94 31.94 111278 10/27/2006 003000 STATE WATER RESOURCES Storm water permit:Library #0611113 332.00 332.00 111279 10/27/2006 002366 STEAM SUPERIOR CARPET Carpet c1eaning:Police storefront 95.00 95.00 CLEANING 111280 10/27/2006 004247 STERICYCLE INC Medic Squad med waste disposal svcs 87.72 87.72 111281 10/27/2006 002651 SUN BADGE COMPANY (2) badges:Code Enforcement 155.16 155.16 Page:? apChkLst Final Check List Page: 8 10/2712006 11:06:19AM CITY OF TEMECULA Bank: union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 111282 10/27/2006 009500 TEMEC ELECTRONICS, INC misc tools/equipment:PW Traffic 169.64 computer supplies:lnfo System 86.02 255.66 111283 10/27/2006 006465 TEMECULA AUTO REPAIR City vehicle repair/maint:B1dg & Safety 58.00 58.00 111284 10/27/2006 006914 TEMECULA COPIERS INC. Sep copier maintlusage:City Fac's 4,452.70 4,452.70 111285 10/27/2006 000307 TEMECULA TROPHY COMPANY name plate: S. Brown 9.16 9.16 111286 10/27/2006 000515 TEMECULA VALLEY CHAMBER FY 06/07 2nd qtr oper.lmrktng agrmnt 37,000.00 37,000.00 OF 111287 10/27/2006 010046 TEMECULA VALLEY Aug '06 Bus. ImplY District Asmnts 43,777.01 43,777.01 CONVENTION & 111288 10/27/2006 004274 TEMECULA VALLEY SECURITY locksmith svcs:Paloma del Sol Prk 160.45 160.45 CENTR 111289 10/27/2006 003862 THYSSENKRUPP elevator maintTheater valve test 850.00 850.00 ELEVATOR.BRNCH 37 111290 10/27/2006 010276 TIME WARNER CABLE - AP 10/22-11/21/06 internet svcs:M.N. 46.95 46.95 SHARED 111291 10/27/2006 009121 TOMASZEWSKI, JEFFREY Refund:ovrpmt offees 30465 Cabrillo 10.00 10.00 111292 10/27/2006 005937 TOMCZAK, MARIA T. TCSD Instructor Earnings 89.60 89.60 111293 10/27/2006 007433 TOVEY SHULTZ CONSTRUCTION Sep prgs pmt #2:Field Ops Ctr pw03-06 318,343.51 318,343.51 INC 111294 10/27/2006 000978 TRAUMA INTERVENTION PRGM registr:Heroes w/Heart 10/26/06 550.00 550.00 INC 111295 10/27/2006 000459 TUMBLE JUNGLE FITNESS GYM TCSD Instructor Earnings 281.40 INC TCSD Instructor Earnings 187.60 TCSD Instructor Earnings 102.20 TCSD Instructor Earnings 93.80 TCSD Instructor Earnings 93.80 758.80 111296 10/27/2006 009709 U H S OF RANCHO SPRINGS, INC Jul-Sep forensic exams:Police 3,600.00 3,600.00 111297 10/27/2006 007118 US TELPACIFIC CORPORATION Oct Internet IP Addresses Block 950.19 950.19 Page:8 apChkLst 10/2712006 11:06:19AM Bank: union UNION BANK OF CALIFORNIA Check # Date Vendor 111298 10/27/2006 004981 UNISOURCE SCREENING & 111299 10/27/2006 004368 VAll COOPER & ASSOCIATES INC 111300 10/27/2006 004261 VERIZON Final Check List CITY OF TEMECULA (Continued) Description Amount Paid Page: 9 Check Total 10/1-15/06 bckgrnd screening svcs 210.75 210.75 Sep inspection svcs:Fiber Optics Install 34,391.50 Oct var. phones general usage 751.86 111301 10/27/2006 004848 VERIZON SELECT SERVICES INC Oct long distance phone svcs 111302 10/27/2006 000348 ZIGLER, GAIL 652.33 reimb:refreshmentslteam bldg 10/19 145.82 34,391.50 751.86 652.33 145.82 2,118,211.25 Grand total for UNION BANK OF CALIFORNIA: Page:9 apChkLst Final Check List Page: 1 11/0212006 4:43:49PM CITY OF TEMECULA Bank: union UNION BANK OF CALIFORNIA Check # Date Vendor Description Amount Paid Check Total 765 11/0212006 000245 PERS - HEALTH INSUR PREMIUM PERS Health Admin Cost Payment 67,882.27 Blue Shield HMO Payment 0.00 67,882.27 766 11/0212006 000444 INSTATAX (EDD) State Disability Ins Payment 21,308.31 21,308.31 767 11/0212006 000283 INSTATAX (IRS) Federal Income Taxes Payment 83,567.20 83,567.20 768 11/0212006 001065 NATIONWIDE RETIREMENT Nationwide Retirement Payment 22,499.03 22,499.03 SOLUTION 769 11/0212006 000246 PERS (EMPLOYEES' PERS ER Paid Member Contr Payment 113,198.89 113,198.89 RETIREMENT) 770 11/0212006 000389 U S C M WEST (OBRA), OBRA - Project Retirement Payment 3,022.90 3,022.90 NATIONWIDE RETIREMENT 771 11/0212006 000642 TEMECULA CITY FLEXIBLE Child Care Reimbursement Payment 8,207.37 Child Care Reimbursement Payment 0.00 8,207.37 111303 10/27/2006 010499 RONALD MCDONALD HOUSE Donations in Memory of Nelson, Jacob 1,080.00 1,080.00 111304 11/0212006 003552 AFLAC AFLAC Cancer Payment 2,470.60 2,470.60 111305 11/0212006 004765 ACTIVE NETWORK INC, THE Refund:Dempsey, Michelle - Tennis 60.00 60.00 111306 11/0212006 008552 ADKINS DESIGN CONSULTING Graphic design: PBSP logo 1,578.50 1,578.50 111307 11/0212006 003679 AEI CASC ENGINEERING Water Quality Mngt Plan Check Services 870.D3 870.03 111308 11/0212006 009767 AL TA LOMA CHARTER INC Transportation:Pacific Palisades 10/14 1,047.38 1,047.38 111309 11/0212006 007280 AMERICAN MEDICAL RESPONSE- Paramedics- Heartsaver AED cards 144.00 144.00 AMR 111310 11/0212006 008279 AMERICOMP IN FOSYSTEMS INC Computers for Library Kiosk 9,035.92 computer equipment: Library 145.46 9,181.38 111311 11/0212006 000101 APPLE ON E INC temp help w/e 10/14 Arwine,R/Henry, X 841.12 Temp help w/e 10/14 Gonzales, C 655.20 temp help w/e 10/14 Hoenig, P 239.68 1,736.00 111312 11/0212006 007513 ATTAR, AMER reimb:'07 calendar plannerlbinder 76.48 76.48 Page:1 apChkLst Final Check List Page: 2 11/0212006 4:43:49PM CITY OF TEMECULA Bank: union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 111313 11/0212006 003466 BASKET & BALLOONS TOO! raffle prizes:Fall Car Show 217.75 Promo basketCitizen Corp 10/17/06 100.00 Fire basket donation:"Heros with Heart" 65.00 Chamber Business Showcase 1 0/19/06 43.10 425.85 111314 11/0212006 008295 BASSETT SULLIVAN, JOE entertainment:E.S.Gardner 11/4/06 250.00 250.00 111315 11/0212006 002381 BEAUDOIN, LINDA Retirement Medical Payment 650.74 650.74 111316 11/0212006 009669 BORDELON, KIM Refund: Jazz & Ballet Combo 10.00 10.00 111317 11/0212006 003222 BROCKMEIER, CAROL Retirement Medical Payment 650.74 650.74 111318 11/0212006 006908 C C & COMPANY INC entertainment:Halloween/O.T. 10/28-29 1,200.00 entertainment:Harvest Carnival 10127 300.00 1,500.00 111319 11/0212006 003138 CAL MAT PW patch truck materials 633.08 PW patch truck materials 303.38 PW patch truck materials 252.93 PW patch truck materials 189.81 PW patch truck materials 187.32 1,566.52 111320 11/0212006 010349 CALIF DEPT OF CHILD SUPPORT Support Payment Case # OF099118 25.00 25.00 111321 11/0212006 004248 CALIF DEPT OF JUSTICE- Fingerprinting srvcs:Police/H.R. 4,402.00 4,402.00 ACCTING 111322 11/0212006 010434 CATERERS CAFE refreshments:Fire Battalion mtg 9/14 159.63 refreshments:IS project coordination mtg 58.34 rirshmnts:Library furn.layoutldsgn mtg 34.11 252.08 111323 11/0212006 009539 CHARLES ABBOTT ASSOCIATES Sept consulting svcs:Fire Prey 12,510.87 12,510.87 INC 111324 11/0212006 004210 CIRCUIT CITY purchase cameras/camcorder:Police 1,433.00 1,433.00 111325 11/0212006 004017 COMERCHERO, JEFF N.L.C. CEO Policy Comm. 9/6-10/06 50.D7 50.07 111326 11/0212006 004405 COMMUNITY HEALTH CHARITIES Community Health Charities Payment 150.00 150.00 111327 11/0212006 004414 COMMUNITY WORKS DESIGN Landscape & irrigation inspection 1,584.10 1,584.10 GROUP Page2 apChkLst Final Check List Page: 3 11/0212006 4:43:49PM CITY OF TEMECULA Bank: union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 111328 11/0212006 001193 COMP USA INC computer equipment Library 125.69 125.69 111329 11/0212006 009905 COMPRISE TECHNOLOGIES INC receipt printers for Library 1,044.00 1,044.00 111330 11/0212006 001264 COSTCO WHOLESALE replacement projector for I.S. 861.99 861.99 111331 11/0212006 010437 COWBOY ENTERPRISES INC entertainment:E.S.Gardner 11/4/06 1,350.00 1,350.00 111332 11/0212006 004123 D L PHARES & ASSOCIATES Noy 06 Lease Charges: Police Old Town 2,577.57 2,577.57 111333 11/0212006 001393 DATA TICKET INC Sep 06 Parking citation processing 2,426.25 2,426.25 111334 11/0212006 003511 DELL COMPUTER CORPORATION Bar Code Scanners-Library 889.70 889.70 111335 11/0212006 004192 DOWNS COMMERCIAL FUELING Fuel for City yehicles:PolicelPlanning 184.12 INC Fuel for City yehicles:I.S.lPWfTCSD 90.91 275.03 111336 11/0212006 001669 DUNN EDWARDS CORPORATION PW stencil truck equipment 137.D7 Graffiti removal supplies:PWMaint 120.04 257.11 111337 11/0212006 004799 E C S IMAGING INC Scanner for Finance Dept 2,149.61 2,149.61 111338 11/0212006 002528 EAGLE GRAPHIC CREATIONS Recogn awards:T.C.C. 10/17/06 204.62 INC dsgn svcs:COT baseball concession 53.88 258.50 111339 11/0212006 005880 EDGE DEVELOPMENT INC. BB court-Kent Hintergardt Memorial Park 60,000.00 60,000.00 111340 11/0212006 000206 FEDEX KINKOS INC Misc Paper/Office Supplies:Ctrl SVs 14.64 14.64 111341 11/0212006 003174 FIREHOUSE MAGAZINE Firehouse subscription:G. Patterson 30.00 30.00 111342 11/0212006 003347 FIRST BANKCARD CENTER 010506 CHARIOT SOFTWARE GROUP TT Library:Ca Exit Exam Software 1,995.00 INC 010505 INSPIRATION SOFTWARE, INC. TT Library educational software 1,307.02 010507 NEW ENGLAND HISTORIC TT Library access membership dues 150.00 3,452.02 111343 11/0212006 010493 FOREST CITY COMMERCIAL Aug-Oct Police mall stn lease pmt 4,374.99 MGMT Noy Police mall stn lease pmt 1,458.33 5,833.32 Page:3 apChkLst Final Check List Page: 4 11/0212006 4:43:49PM CITY OF TEMECULA Bank: union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 111344 11/0212006 010325 FORT DEARBORN LIFE Voluntary Supp Life Insurance Payment 833.20 833.20 111345 11/0212006 002982 FRANCHISE TAX BOARD Support Payment Case # 452379267 75.00 75.00 111346 11/0212006 009097 FULL COMPASS SYSTEMS Theater Supplies 49.07 49.07 111347 11/0212006 004125 GRAYDON, KEN entertainment:E.S.Gardner 11/4/06 250.00 250.00 111348 11/0212006 000186 HANKS HARDWARE INC Exhibit supplies:T. Museum 34.01 Maintenance supplies:Theater 14.52 48.53 111349 11/0212006 001135 HEALTH POINTE MEDICAL Sept Pre-employment physicals 195.00 GROUP INC Sept Pre-employment physicals 85.00 280.00 111350 11/0212006 004811 HEWLETT PACKARD Library Security Monitoring System 1,508.89 2 printers for Police aT Stn 991.30 2,500.19 111351 11/0212006 005748 HODSON, CHERYL A Support Payment 44.68 44.68 111352 11/0212006 000963 HOGAN, DAVID Retirement Medical Payment 650.74 650.74 111353 11/0212006 001158 HOLIDAY INN Hotel/DUI Sem:LaReau 11/12-17/06 572.35 572.35 111354 11/0212006 003624 HOWELL, ANN MARIE COT "CityScape" online newsletter 452.55 COT at a glance demographic profile 377.13 829.68 111355 11/0212006 000194 I C M A RETIREMENT-PLAN I C M A Retirement Trust 457 Payment 11,567.40 11,567.40 303355 111356 11/0212006 004406 IGOE & COMPANY INC Oct flex benefit plan pmt 301.40 301.40 111357 11/0212006 004624 INGERSOLL-RAND EQUIPMENT asphalt roller parts:P\N Maint 415.19 SALES asphalt roller parts:PWMaint 182.73 Credit: Item return 1 Public Works -286.66 311.26 111358 11/0212006 001407 INTER VALLEY POOL SUPPLY Pool sanitizing chemical:CRCfTES pools 417.10 417.10 INC 111359 11/0212006 000750 INTOXIMETERS INC equip fee/repair estimate on intoximeter 270.34 270.34 111360 11/0212006 010119 IRS-OIC Sup Pmt Offer#1 000497587 452379267 140.11 140.11 Page:4 apChkLst Final Check List Page: 5 11/0212006 4:43:49PM CITY OF TEMECULA Bank: union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 111361 11/0212006 008516 JAMIN ENTERTAINMENT Ent.:Spark of Love Toy Drive 11/18 125.00 125.00 111362 11/0212006 006302 KIDZ LOVE SOCCER, INC TCSD instructor earnings 538.65 TCSD instructor earnings 453.60 TCSD instructor earnings 365.01 TCSD instructor earnings 340.20 TCSD instructor earnings 311.85 TCSD instructor earnings 226.80 TCSD instructor earnings 198.45 TCSD instructor earnings 141.75 TCSD instructor earnings 141.75 TCSD instructor earnings 113.40 TCSD instructor earnings 113.40 TCSD instructor earnings 113.40 TCSD instructor earnings 85.05 TCSD instructor earnings 28.35 3,171.66 111363 11/0212006 002789 KIMCO STAFFING SERVICES INC temp help wle 10/08 W.W.lN.B. 1,276.00 temp help wle 10/15 Board, Margo 696.00 temp help wle 10/15 Wedeking, Wendy 626.04 2,598.04 111364 11/0212006 001282 KNORR SYSTEMS INC handrails for diving board:CRC pool 1,962.66 1,962.66 111365 11/0212006 006744 LAMAR CORPORATION, THE Oct billboard chg-out:Old Town 990.00 990.00 111366 11/0212006 010396 LAWN TECH EQUIPMENT generator:Police Incident Command Post 4,307.85 4,307.85 COMPANY 111367 11/0212006 004412 LEANDER, KERRY D. TCSD instructor earnings 73.50 73.50 111368 11/0212006 004905 LIEBERT, CASSIDY & WHITMORE Sep '06 HR legal svcs for TE060-#01 52.00 52.00 111369 11/0212006 003726 LIFE ASSIST INC medical supplies:Paramedics 1 ,785.77 1,785.77 111370 11/0212006 010268 LIGHTING RESOURCES LLC Oct disposal of universal waste 683.15 683.15 111371 11/0212006 010489 L1N,TAO periormance:Theater - 11/17/06 3,750.00 3,750.00 111372 11/0212006 010490 LISA SAPINKOPF ARTISTS Berlin Piano Quartet:Theater 11/17/06 3,750.00 3,750.00 111373 11/0212006 006654 LOST CANYON RANGERS Entertainment:E.S.Gardner 11/4/06 750.00 750.00 PageS apChkLst Final Check List Page: 6 11/0212006 4:43:49PM CITY OF TEMECULA Bank: union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 111374 11/0212006 004087 LOWES INC Theater Supplies 81.85 81.85 111375 11/0212006 008610 M C R STAMPS entertainment:High Hopes Prgm 10/6 25.00 entertainment:High Hopes Prgm 10/20 25.00 50.00 111376 11/0212006 003782 MAIN STREET SIGNS misc. signslhardwarelsupplies:PW 2,506.27 misc. signs/hardwarelsupplies:PW 1,051.64 3,557.91 111377 11/0212006 000220 MAURICE PRINTERS INC qty 3500 C.OT demographic profile 1,507.42 printing brochure:Police Cap Prgm 961.13 2,468.55 111378 11/0212006 006571 MELODY'S AD WORKS Old Town holiday promotions SYCS 3,000.00 reimb expenses:Halloween 159.38 reimbexpenses: E.S. Gardner/Dickens 40.92 3,200.30 111379 11/0212006 005684 MEREDITH, MARILYN entertainment:E.S.Gardner 11/4/06 250.00 250.00 111380 11/0212006 003076 MET LIFE INSURANCE COMPANY MetLife Dental Insurance Payment 8,213.40 8,213.40 111381 11/0212006 001384 MINUTEMAN PRESS correction notices:Bldg & Safety 385.92 "electrical" labels:Bldg & Safety 162.64 business cards:E. Grice 116.96 business cards: S. Dakin 116.96 business cards:J. Pelletier 116.96 business cards: R. Graciano 116.96 business cards:L. Larson 43.37 business cards:T. Masters 43.37 business cards: J. Alvarez 43.37 1,146.51 111382 11/0212006 001868 MIYAMOTO-JURKOSKY, SUSAN page turning services Theater 11/17 70.00 70.00 A. 111383 11/0212006 004534 MOBILE SATELLITE VENTURES Nay EOC Stn Satellite Phone SYCS 72.25 72.25 LP 111384 11/0212006 001986 MUZAK -SOUTHERN CALIFORNIA Nay "on-hold" phone music:City Hall 129.72 129.72 111385 11/0212006 010504 NEXTEL COMMUNICATIONS Oct- Police cell phone usage/equip 117.42 117.42 111386 11/0212006 009570 o C B REPROGRAPHICS Sep blueprint reproductionslvar prjts 2,115.27 2,115.27 111387 11/0212006 002105 OLD TOWN TIRE & SERVICE City Vehicle RepairlMaint SYCS 57.40 57.40 Page:6 apChkLst Final Check List Page: 7 11/0212006 4:43:49PM CITY OF TEMECULA Bank: union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 111388 11/0212006 002800 PACIFIC STRIPING INC Street Striping prgm :Public Works 124,993.54 124,993.54 111389 11/0212006 003955 PANE CONSULTING SERVICE Recreation supplies:C.Museum 773.78 773.78 (PCS) 111390 11/0212006 001248 PAPER DIRECT INC Stationary:TCSD Tree Lighting Event 132.91 132.91 111391 11/0212006 010501 PC WORLD annual PC World subscr:lnfo Sys 12.00 12.00 111392 11/0212006 001958 PERS LONG TERM CARE PERS Long Term Care Payment 288.55 288.55 PROGRAM 111393 11/0212006 000249 PETTY CASH Petty Cash Reimbursement 496.41 496.41 111394 11/0212006 007484 PHILIPS MEDICAL SYSTEMS INC CPR class supplies:Paramedics 980.53 980.53 111395 11/0212006 005820 PRE-PAID LEGAL SERVICES INC PrePaid Legal Services Payment 544.05 544.05 111396 11/0212006 010438 PREECE, ROBERT entertainment:E.S.Gardner 11/4/06 250.00 250.00 111397 11/0212006 007403 RAGAN COMMUNICATIONS, INC. "Leading for Results" subscr:Fisk, 89.00 89.00 111398 11/0212006 002072 RANCHO CALIF WATER DIST- water meter installation:W.C.Fire stn 11,176.00 11,176.00 FEES 111399 11/0212006 000262 RANCHO CALIF WATER DISTRICT Oct chrgs for various water meters 3,309.51 Oct 01-02-45007-0 Library 481.50 Oct 01-04-10033-2 Margarita Rd 208.84 Oct 01-08-00203-0 Deer Hollow Wy 130.79 Oct 01-08-38009-0 Fire Stn 92 113.29 Oct 01-02-45006-0 Library Ldscp 35.07 4,279.00 111400 11/0212006 003742 REHAB FINANCIAL RDA Loan Service 750.00 750.00 CORPORATION 111401 11/0212006 002110 RENTAL SERVICE equipment rental:PW Maint 56.53 56.53 CORPORATION 111402 11/0212006 009781 RHODES, IRVEN refund:Sr Excursion!l-listorical Julian 20.00 20.00 Page:? apChkLst Final Check List Page: 8 11/0212006 4:43:49PM CITY OF TEMECULA Bank: union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 111403 11/0212006 000418 RIVERSIDE CO CLERK & Ntc/exemption fee:Habitat for Humanity 64.00 64.00 RECORDER 111404 11/0212006 004773 RIVERSIDE CO SHERIFFS Sept 06 Booking Fees 25,347.33 25,347.33 111405 11/0212006 000406 RIVERSIDE CO SHERIFFS DEPT 10/6-7:law enforcement:Rod Run 20,249.81 9/24/06:law enforcement:Green Concert 737.28 20,987.09 111406 11/0212006 003587 RIZZO CONSTRUCTION INC paver install: Vet Memorial phase II 16,981.75 16,981.75 111407 11/0212006 009652 ROYAL PACIFIC CONSTRUCTION Final pmt:Police Mall Station 24,069.27 24,069.27 INC 111408 11/0212006 001942 S C SIGNS Aug public ntc sign postings:Planning 1,395.00 Jul public ntc sign postings:Planning 1,175.00 Jul-Sep public ntc sign posting:C.Clrk 1,105.00 Sep public ntc sign postings:Planning 850.00 4,525.00 111409 11/0212006 007582 SAFEGUARD DENTAL & VISION SafeGuard Vision Plan Payment 993.05 993.05 111410 11/0212006 006815 SAN DIEGO, COUNTY OF Support Payment Account # 581095025 12.50 12.50 111411 11/0212006 008779 SCREENMOBILE Res ImplY Prgm: O'Neill, Ruth 169.00 169.00 111412 11/0212006 010089 SECURITAS SECURITY SRVCS 10/6-12/06 security sIYcs:Fire Stn 95 1,337.96 1,337.96 USA 111413 11/0212006 008529 SHERIFF'S CIVIL DIV - CENTRAL Support Payment La File # 2005033893 150.00 150.00 111414 11/0212006 004609 SHREDFORCE INC Oct doc. shredding svcs:Rcrds Mgmt 110.00 Oct doc. shredding svcs:CRC 22.50 132.50 111415 11/0212006 000645 SMART & FINAL INC Halloween Carnival supplies 815.21 hospitality supplies Theater events 267.51 supplies:J O'Grady retirement 156.86 recreation supplies:MPSC 146.90 recreation supplies:High Hopes Prgm 139.30 1,525.78 111416 11/0212006 003002 SMOOTH ILL SPORTS rental equip:Skate Park 1,653.59 1,653.59 DISTRIBUTORS Page:8 apChkLst Final Check List Page: 9 11/0212006 4:43:49PM CITY OF TEMECULA Bank: union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 111417 11/0212006 000537 SO CALIF EDISON Oct 2-00-397-5042 City Hall 7,860.10 Oct 2-00-397-5067 various mtrs 1,816.60 Oct 2-02-351-4946 MPSC 1,318.38 Oct 2-18-937-3152 T.Museum 886.55 Oct 2-27-615-1750 Fire Stn 73 814.45 Oct 2-27-560-0625 DeerhollowWay 469.51 Oct 2-11-007-0455 6th St 353.30 Oct 2-20-817-9929 Police aT Stn 237.66 Oct 2-21-911-7892 Old Town Prk Lot 177.51 Oct 2-19-171-8568 Wedding Chpl 72.07 Oct 2-14-204-1615 Front St Rdio 54.67 Oct 2-28-366-3128 Seraphina Ped 39.62 Oct 2-27-371-8494 Offsite Storage 21.58 14,122.00 111418 11/0212006 001212 SO CALIF GAS COMPANY Oct 091-024-9300-5 CRC 2,235.35 Oct 091-085-1632-0 T. E.S. Pool 1,645.15 Oct 101-525-1560-6 Fire Stn 73 51.28 3,931.78 111419 11/0212006 010500 SOLID STATE STAMPING INC refund :sec.depositlCRC 150.00 150.00 111420 11/0212006 000519 SOUTH COUNTY PEST CONTROL pest control services:Corte San Louis 94.00 94.00 INC 111421 11/0212006 000293 STADIUM PIZZA INC rirshmnts/stafftrng:C. Museum 10/18 40.13 40.13 111423 11/0212006 007762 STANDARD OF OREGON Mandatory Life Insurance Payment 10,446.09 10,446.09 111424 11/0212006 010215 T & T JANITORIAL Oct janitorial srvcs:C. Museum 912.00 Oct janitorial srvcsT Museum 864.00 Oct janitorial srvcs:MPSC 737.76 Oct janitorial srvcs:TCC 708.00 3,221.76 111425 11/0212006 000305 TARGET BANK BUS CARD SRVCS Harvest Family Carnival supplies 307.25 recreation supplies:C.Museum 32.26 hospitality supplies:Theater events 16.15 355.66 111426 11/0212006 001547 TEAMSTERS LOCAL 911 Union Dues Payment 5,007.00 5,007.00 111427 11/0212006 004274 TEMECULA VALLEY SECURITY Security padlocks:Library 994.32 994.32 CENTR 111428 11/0212006 008379 THEATER FOUNDATION, THE Chorus Line Gala:Theater 10/19/06 1,027.90 1,027.90 111429 11/0212006 010276 TIME WARNER CABLE - AP Nov high speed internet CW 55.95 SHARED 10/26-11/25 high speed internet Sr Ctr 46.95 102.90 Page:9 apChkLst Final Check List Page: 10 11/0212006 4:43:49PM CITY OF TEMECULA Bank: union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 111430 11/0212006 004145 TIME WARNER TELECOM Oct City phones general usage 1,050.24 1,050.24 111431 11/0212006 008517 UNITED SITE SERVICES OF 10/12-11/8 sec.fencing:Main St Bridge 26.40 26.40 CA,INC 111432 11/0212006 000325 UNITED WAY United Way Charities Payment 212.15 212.15 111433 11/0212006 004261 VERIZON Oct xxx-2016 reverse 911 108.66 Oct xxx-9897 general usage 89.72 Oct xxx-3526 fire alarm 84.21 Oct xxx-7786 C. Washington 41.69 Oct xxx-5275 PO OSL 28.98 Oct xxx-2676 general usage 28.06 Oct xxx-5696 Sports Complex 28.06 409.38 111434 11/0212006 004789 VERIZON ONLINE Internet svcs xx2527 Police OSL 39.95 Internet svcs xx9549 Police Storefront 39.95 79.90 111435 11/0212006 004826 WEST COAST OVERHEAD DOOR Res ImplY Prgm: Fritz, Jeff & Christina 775.00 775.00 111436 11/0212006 010502 WINDOWS IT PRO annual Windows IT Pro subscr:T.Hafeli 49.95 49.95 111437 11/0212006 010430 WRISTBANDS MEDTECH USA INC wristbands:Halloween Camival 95.00 95.00 Grand total for UNION BANK OF CALIFORNIA: 794,590.68 Page:10 ITEM NO.4 Approvals City Attorney Director of Finance City Manager V 1/12. !fr- CITY OF TEMECULA AGENDA REPORT TO: City Manager/City Council FROM: Genie Roberts, Director of Finance DATE: November 14, 2006 SUBJECT: City Treasurer's Report as of September 30, 2006 PREPARED BY: Jason Simpson, Assistant Finance Director Shannon Buckley, Accountant RECOMMENDATION: September 30, 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 USBank trust 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 September 30, 2006. FISCAL IMPACT: None. ATTACHMENTS: City Treasurer's Report as of September 30, 2006 City of Temecula, California Portfolio Management Portfolio Summary September 30, 2006 City ctTemecula 43200 6usirtess Park [);rve PO 60x9033 Temecula, CA, 92590 (951)694-6430 Reporting period 09/01/2006-0913012006 Portfolio TEME CP PM (PRF_PM1)SyrnRer<5.4U02a ReportVer.5.00 Run Date: 11!03!2000-10:14 City of Temecula, California Portfolio Management Page 2 Portfolio Details - Investments September 30, 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 2,557.42 2,557.42 2,557.42 4.720 4.655 4.720 SYSCFD 03-04-2 AD 03-04-2 First American Treasury 14,165.86 14,165.86 14,165.86 4.720 4.655 4.720 SYSCFD 03-04-3 AD 03-04-3 First American Treasury 5,003.41 5,003.41 5,003.41 4.720 4.655 4.720 SYSCFD 03-04-5 AD 03-04-5 First American Treasury 1,806.31 1,806.31 1,806.31 4.720 4.655 4.720 SYSCFD 01-2-1 CFD 01-2-1 First American Treasury 0.00 0.00 0.00 4.720 4.655 4.720 SYSCFD 01-2-2 CFD 01-2-2 First American Treasury 0.00 0.00 0.00 4.720 4.655 4.720 SYSCFD 01-2-3 CFD 01-2-3 First American Treasury 0.00 0.00 0.00 4.720 4.655 4.720 SYSCFD 01-2-4 CFD 01-2-4 First American Treasury 0.00 0.00 0.00 4.720 4.655 4.720 SYSCFD 01-2-5 CFD 01-2-5 First American Treasury 0.00 0.00 0.00 4.720 4.655 4.720 SYSCFD 01-2-6-0 CFD 01-2-6-0 First American Treasury 09/01/2006 44,901.66 44,901.66 44,901.66 4.720 4.655 4.720 SYSCFD 01-2-6-6 CFD 01-2-6-6 First American Treasury 09/01/2006 440,387.50 440,387.50 440,387.50 4.720 4.655 4.720 SYSCFD 01-2-6-8 CFD 01-2-6-8 First American Treasury 09/01/2006 2,956,347.64 2,956,347.64 2,956,347.64 4.720 4.655 4.720 SYSCFD 01-2-9 CFD 01-2-9 First American Treasury 0.00 0.00 0.00 4.720 4.655 4.720 SYSCFD 03-02-10 CFD 03-02-10 First American Treasury 686,621.25 686,621.25 686,621.25 4.720 4.655 4.720 SYSCFD 03-02-11 CFD 03-02-11 First American Treasury 38,325,338.58 38,325,338.58 38,325,338.58 4.720 4.655 4.720 SYSCFD 03-02-13 CFD 03-02-13 First American Treasury 0.00 0.00 0.00 4.720 4.655 4.720 SYSCFD 03-02-3 CFD 03-02-3 First American Treasury 14,741.88 14,741.88 14,741.88 4.720 4.655 4.720 SYSCFD 03-02-6 CFD 03-02-6 First American Treasury 3,558,668.49 3,558,668.49 3,558,668.49 4.720 4.655 4.720 SYSCFD 03-02-7 CFD 03-02-7 First American Treasury 1,079,336.34 1,079,336.34 1,079,336.34 4.720 4.655 4.720 SYSCFD 03-02-9 CFD 03-02-9 First American Treasury 1,402,621.29 1,402,621.29 1,402,621.29 4.720 4.655 4.720 SYSCFD 03-1-1 CFD 03-03-1 First American Treasury 82,265.91 82,265.91 82,265.91 4.720 4.655 4.720 SYSCFD 03-03-11 CFD 03-03-11 First American Treasury 10,543.56 10,543.56 10,543.56 4.720 4.655 4.720 SYSCFD 03-03-2 CFD 03-03-2 First American Treasury 139.90 139.90 139.90 4.720 4.655 4.720 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 0.00 0.00 0.00 4.720 4.655 4.720 SYSCFD 03-03-6 CFD 03-03-7 First American Treasury 45.77 45.77 45.77 4.720 4.655 4.720 SYSCFD 03-03-9 CFD 03-03-9 First American Treasury 3,128.05 3,128.05 3,128.05 4.720 4.655 4.720 SYSCFD 03-06-0 CFD 03-06-0 First American Treasury 756.91 756.91 756.91 4.720 4.655 4.720 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 339,289.05 339,289.05 339,289.05 4.720 4.655 4.720 SYSCFD 03-06-3 CFD 03-06-3 First American Treasury 6,439.46 6,439.46 6,439.46 4.720 4.655 4.720 SYSCFD 03-06-8 CFD 03-06-8 First American Treasury 4.09 4.09 4.09 4.720 4.655 4.720 SYSCFD 03-1-1 CFD 03-1-1 First American Treasury 101,926.94 101,926.94 101,926.94 4.720 4.655 4.720 SYSCFD 03-1-10 CFD 03-1-10 First American Treasury 976.97 976.97 976.97 4.720 4.655 4.720 SYSCFD 03-1-13 CFD 03-1-13 First American Treasury 0.00 0.00 0.00 3.860 3.807 3.860 SYSCFD 03-1-16 CFD 03-1-16 First American Treasury 231,898.09 231,898.09 231,898.09 4.720 4.655 4.720 SYSCFD 03-1-2 CFD 03-1-2 First American Treasury 0.34 0.34 0.34 4.720 4.655 4.720 SYSCFD 03-1-21 CFD 03-1-21 First American Treasury 14,063.74 14,063.74 14,063.74 4.720 4.655 4.720 Portfolio TEME CP Run Date 11/03/2006-1014 PM (PRF _PM2) SymRept 6.41.202a ReportVer.5.00 City of Temecula, California Portfolio Management Page 3 Portfolio Details - Investments September 30, 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 03-1-3 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 0.00 0.00 0.00 4.720 4.655 4.720 SYSCFD 03-1-6 CFD 03-1-6 First American Treasury 836.23 836.23 836.23 4.720 4.655 4.720 SYSCFD 03-1-8 CFD 03-1-8 First American Treasury 536,409.35 536,409.35 536,409.35 4.720 4.655 4.720 SYSCFD 88-12-1 CFD 88-12-1 First American Treasury 603.92 603.92 603.92 4.720 4.655 4.720 SYSCFD 88-12-3 CFD 88-12-3 First American Treasury 71,201.48 71,201.48 71,201.48 4.720 4.655 4.720 SYSCFD 88-12-5 CFD 88-12-5 First American Treasury 0.01 0.01 0.01 4.720 4.655 4.720 SYSCFD01-2-6-13 CFD01-2-6-13 First American Treasury 09/01/2006 135,307.40 135,307.40 135,307.40 4.720 4.655 4.720 SYSCFD01-2-6-16 CFD01-2-6-16 First American Treasury 09/01/2006 202,728.76 202,728.76 202,728. 76 4.720 4.655 4.720 SYSRDA TABS-1 RDA TABs-1 First American Treasury 708.38 708.38 708.38 4.720 4.655 4.720 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 374,975.75 374,975.75 374,975.75 4.720 4.655 4.720 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 50,387,977.86 50,646,748.69 50,646,748.69 50,646,748.69 4.655 4.720 Letter of Credit SB2339BE 02008 ASSURANCE CO BOND INSURANCE 09/01/2006 1.00 1.00 1.00 0.000 0.000 09652213 02006 Citibank, N.A. 07/01/2006 1.00 1.00 1.00 0.000 0.000 CA 2006-012 02005 Ohio Savings Bank 07/01/2006 1.00 1.00 1.00 0.000 0.000 --- Subtotal and Average 3.00 3.00 3.00 3.00 0.000 0.000 Local Agency Investment Funds SYSCFD 03-03-10 CFD 03-03-10 CA Local Agency Investment Fun 3,871,436.51 3,871,436.51 3,871,436.51 5.023 4.954 5.023 SYSCFD 03-03-12 CFD 03-03-12 CA Local Agency Investment Fun 10,577,431.57 10,577,431.57 10,577,431.57 5.023 4.954 5.023 SYSCFD 03-03-4 CFD 03-03-4 CA Local Agency Investment Fun 0.00 0.00 0.00 4.700 4.636 4.700 SYSCFD 03-03-8 CFD 03-03-8 CA Local Agency Investment Fun 3,983,857.37 3,983,857.37 3,983,857.37 5.023 4.954 5.023 SYSCFD 03-06-4 CFD 03-06-4 CA Local Agency Investment Fun 1,778,885.84 1,778,885.84 1,778,885.84 5.023 4.954 5.023 SYSCFD 03-1-11 CFD 03-1-11 CA Local Agency Investment Fun 1,358,205.08 1,358,205.08 1,358,205.08 5.023 4.954 5.023 SYSCFD 03-1-22 CFD 03-1-22 CA Local Agency Investment Fun 3,433,697.82 3,433,697.82 3,433,697.82 5.023 4.954 5.023 SYSCFD 03-1-7 CFD 03-1-7 CA Local Agency Investment Fun 178,282.58 178,282.58 178,282.58 5.023 4.954 5.023 SYSCFD 03-1-9 CFD 03-1-9 CA Local Agency Investment Fun 6,305.01 6,305.01 6,305.01 5.023 4.954 5.023 SYSCITY CITY CA Local Agency Investment Fun 27,062,416.57 27,013,320.50 27,062,416.57 5.023 4.954 5.023 SYSRDA RDA CA Local Agency Investment Fun 2,058,263.48 2,054,529.42 2,058,263.48 5.023 4.954 5.023 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 9,588,963.94 9,571,567.84 9,588,963.94 5.023 4.954 5.023 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 65,047,745.77 63,897,745.77 63,827,519.54 63,897,745.77 4.954 5.023 Portfolio TEME CP Run Date 11/03/2006-1014 PM (PRF _PM2) SymRept 6.41.202a City of Temecula, California Portfolio Management Page 4 Portfolio Details - Investments September 30, 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 3133X55G9 01014 Federal Home Loan Bank 04/08/2004 3,050,000.00 2,977,562.50 3,050,000.00 3.100 3.058 3.101 464 01/0812008 3133X52S6 01015 Federal Home Loan Bank 04/07/2004 2,965,000.00 2,890,875.00 2,965,000.00 3.000 2.960 3.001 463 01/0712008 3133X55H7 01016 Federal Home Loan Bank 03/29/2004 3,000,000.00 2,925,930.00 3,000,000.00 3.000 2.960 3.001 453 12/2812007 3133X55H7 01017 Federal Home Loan Bank 03/29/2004 1,000,000.00 975,310.00 1,000,000.00 3.000 2.960 3.001 453 12/2812007 3133X5DV7 01018 Federal Home Loan Bank 04/14/2004 1,000,000.00 976,560.00 1,000,000.00 3.150 3.108 3.151 470 01/14/2008 3133X5GE2 01019 Federal Home Loan Bank 04/15/2004 2,000,000.00 1,950,620.00 2,000,000.00 3.070 3.029 3.071 471 01/15/2008 3133X5K49 01020 Federal Home Loan Bank 04/16/2004 1,000,000.00 976,250.00 1,000,000.00 3.125 3.083 3.126 472 01/16/2008 3133X5QF8 01021 Federal Home Loan Bank 04/22/2004 2,000,000.00 1,948,760.00 2,000,000.00 3.000 2.960 3.001 478 01/22/2008 3133X5ZL5 01022 Federal Home Loan Bank 04/30/2004 2,000,000.00 1,961,260.00 2,000,000.00 3.520 3.473 3.521 486 01/30/2008 3133XAY84 01026 Federal Home Loan Bank 03/23/2005 1,000,000.00 993,130.00 999,750.00 3.850 3.810 3.863 173 03123/2007 3133XAZ91 01027 Federal Home Loan Bank 03/28/2005 1,000,000.00 996,560.00 999,750.00 3.785 3.750 3.802 88 12/28/2006 3133XBY66 01029 Federal Home Loan Bank 06/15/2005 2,000,000.00 1,994,380.00 2,000,000.00 4.000 3.781 3.833 75 12/15/2006 3133XCMC4 01032 Federal Home Loan Bank 08/31/2005 3,000,000.00 2,974,680.00 2,997,360.00 4.250 4.238 4.296 311 08108/2007 3133XCY31 01033 Federal Home Loan Bank 09/14/2005 960,000.00 953,097.60 960,000.00 4.380 4.320 4.380 348 09/14/2007 3133XD2G5 01034 Federal Home Loan Bank 09/21/2005 3,000,000.00 2,975,640.00 2,998,125.00 4.375 4.347 4.407 446 12/21/2007 3133XD3Q2 01035 Federal Home Loan Bank 09/28/2005 620,000.00 615,542.20 620,000.00 4.400 4.340 4.400 362 09/28/2007 3133XD3RO 01036 Federal Home Loan Bank 09/28/2005 2,000,000.00 1,983,760.00 2,000,000.00 4.500 4.438 4.500 544 03128/2008 3133XD6F3 01038 Federal Home Loan Bank 09/28/2005 1,000,000.00 990,000.00 1,000,000.00 4.230 4.174 4.232 453 12/28/2007 3133XD6D8 01039 Federal Home Loan Bank 09/29/2005 1,000,000.00 992,190.00 1,000,000.00 4.140 4.086 4.143 271 06129/2007 3133XDA84 01040 Federal Home Loan Bank 09/28/2005 1,000,000.00 997,190.00 1,000,000.00 4.200 4.147 4.204 88 12/28/2006 3133XDAB7 01041 Federal Home Loan Bank 09/29/2005 1,000,000.00 997,190.00 1,000,000.00 4.120 4.068 4.124 89 12/29/2006 3133XDBWO 01043 Federal Home Loan Bank 10/12/2005 1,000,000.00 999,690.00 1,000,000.00 4.050 3.995 4.050 11 10/12/2006 3133XDBQ3 01044 Federal Home Loan Bank 10/14/2005 1,000,000.00 996,880.00 1,000,000.00 4.250 4.196 4.255 101 01/10/2007 3133XDBX8 01045 Federal Home Loan Bank 10/12/2005 1,000,000.00 996,880.00 1,000,000.00 4.150 4.097 4.154 103 01/12/2007 3133XDB67 01046 Federal Home Loan Bank 10/12/2005 1,000,000.00 994,060.00 999,375.00 4.150 4.136 4.193 193 04/12/2007 3133XDKQ3 01047 Federal Home Loan Bank 11/09/2005 1,000,000.00 997,190.00 1,000,000.00 4.500 4.443 4.505 131 02/09/2007 3133XEG94 01053 Federal Home Loan Bank 01/26/2006 1,000,000.00 998,130.00 1,000,000.00 4.750 4.685 4.750 117 01/26/2007 3128X3SM6 01025 Federal Home Loan Mtg Corp 03/07/2005 1,000,000.00 988,260.00 998,000.00 3.750 3.784 3.837 306 08103/2007 3128X36R9 01030 Federal Home Loan Mtg Corp OS/24/2005 1,000,000.00 988,550.00 1,000,000.00 4.050 3.993 4.048 358 09/24/2007 3128X4NU1 01042 Federal Home Loan Mtg Corp 10/18/2005 1,000,000.00 992,440.00 1,000,000.00 4.375 4.315 4.375 382 10/18/2007 3136F6M63 01028 Federal National Mtg Assn 04/05/2005 1,000,000.00 993,440.00 1,000,000.00 4.000 3.945 4.000 186 04/05/2007 --- Subtotal and Average 45,587,360.00 45,595,000.00 44,992,007.30 45,587,360.00 3.722 3.774 341 Treasury Coupon Securities 912828DT4 02004 U.S. Treasury 03/14/2006 725,000.00 711,635.66 711,635.66 3.750 4.586 4.650 592 05115/2008 912795YQ8 02007 U.S. Treasury 08/01/2006 100,000.00 97,635.08 97,635.08 4.877 9.887 10.024 116 01/25/2007 --- Subtotal and Average 809,270.74 825,000.00 809,270.74 809,270.74 5.226 5.298 535 Portfolio TEME CP Run Date 11/03/2006-1014 PM (PRF _PM2) SymRept 6.41.202a City of Temecula, California Portfolio Management Portfolio Details - Investments September 30, 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 1,000,000.00 990,630.00 1,000,000.00 3.820 3.768 3.820 243 06/0112007 31331 S5Y5 01037 Federal Farm Credit Bank 09/16/2005 1,000,000.00 993,130.00 1,000,000.00 4.000 3.947 4.002 197 04/1612007 --- Subtotal and Average 3,866,666.67 2,000,000.00 1,983,760.00 2,000,000.00 3.857 3.911 220 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 9,831 08/3112033 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 10,196 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 3,988 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 3,988 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 7,645 Total and Average 169,636,873.91 168,030,986.22 167,325,798.03 168,007,616.96 4.498 4.560 329 Run Date 11/03/2006-1014 Portfolio TEME CP PM (PRF _PM2) SymRept 6.41.202a City of Temecula, California Portfolio Management Page 6 Portfolio Details - Cash September 30, 2006 Average Purchase Stated YTM VTM 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 SYSRJ NOBLE RJ NOBLE CO Bank of Sacramento 08/07/2006 233,022.63 233,022.63 233,022.63 1.250 1.233 1.250 SYSBARNHART1 BARNHART 1 California Bank & Trust 637,949.68 637,949.68 637,949.68 3.200 3.156 3.200 SYS EDGE DEVELO EDGE DEV1 California Bank & Trust 935,488.86 935,488.86 935,488.86 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 PREMIER BANK PREM IER BAN K PREMIER BANK 08/18/2006 201,549.55 201,549.55 201,549.55 1.550 1.529 1.550 Passbook/Checking Accounts SYSPetty Cash Petty Cash City ofTemecula 07/01/2006 2,210.00 2,210.00 2,210.00 0.000 0.000 SYSFlex Ck Acct Flex Ck Acct Union Bank of California 07/01/2006 12,946.99 12,946.99 12,946.99 0.000 0.000 SYSGen Ck Acct Gen CkAcct Union Bank of California 07/01/2006 4,558,088.59 4,558,088.59 4,558,088.59 0.000 0.000 OLD TOWN CK ACC OLD TOWN CHK Union Bank of California 07/01/2006 42,933.31 42,933.31 42,933.31 0.000 0.000 SYSParking Ck Parking Ck Union Bank of California 07/01/2006 13,728.50 13,728.50 13,728.50 0.000 0.000 Average Balance 0.00 Total Cash and Investmentss 169,636,873.91 174,668,904.33 173,963,716.14 174,645,535.07 4.498 4.560 329 Run Date 11/03/2006-1014 Portfolio TEME CP PM (PRF _PM2) SymRept 6.41.202a Cash and Investments Report CITY OF TEMECULA Through September 2006 001 GENERAL FUND 100 STATE GAS TAX FUND 101 STATE TRANSPORTATION FUND 120 DEVELOPMENT IMP ACT FUND 150 AB 2766 FUND 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 272 CFD 01-2 HARVESTON A&B IMPROVEMENT FUND 273 CFD 03-1 CROWNE HILL IMPROVEMENT FUND 275 CFD 03-3 WOLF CREEK IMPROVEMENT FUND 276 CFD 03-6 HARVESTON 2 IMPROVEMENT FUND 277 CRD - RORIPAUGH 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 472 CFD 01-2 HARVESTON A&B DEBT SERVICE FUND 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 39,840,575.02 21.91 980,458.98 10,450,870.07 318,748.83 9,473,925.66 3,337,659.66 764,830.19 64,131.75 11,892.26 59,390.81 31,316.35 307,782.19 414.00 19,478,307.68 87,659.14 2,956,347.64 5,528,776.78 18,446,442.83 1,785,325.30 40,807,296.21 1,072,261.99 1,590,022.22 749,217.28 1,089,836.13 272,875.01 199,208.10 1,314,747.29 382,034.54 3,097,821.04 4,088.06 907,290.56 1,320,838.21 138,454.92 2,342,491.76 359,510.54 4,390,845.23 173,963,716.14 ITEM NO.5 Approvals City Attorney Director of Finance City Manager ~ lJ/L J;;r CITY OF TEMECULA AGENDA REPORT TO: City Manager/City Council FROM: Genie Roberts, Director of Finance Howard Windsor, Fire Chief DATE: November 14, 2006 SUBJECT: Fire/EMS Protection Agreement for Fiscal Year 2006-07 RECOMMENDATION: That the City Council approve the Cooperative Agreement with the County of Riverside to provide fire protection, fire prevention, rescue service through June 30, 2008. BACKGROUND: Since the City of Temecula's incorporation, Fire/EMS services have been provided through a Cooperative Fire Service Agreement with the California Department of Forestry and Fire Protection (CDFFP) and Riverside County Fire Department (RCFD). Formalization of this agreement is required every three years to appropriately renew the required contract between the City of Temecula and the above-mentioned fire service agencies. The CDFFP has provided the City with a schedule of contract staffing costs (Exhibit "A") to the Fire Protection Agreement for City Council approval, which reflects the service costs for fiscal year 2006-07. The increases for services are due to a transition of 4.0 staffing on engines and reorganization of the Fire Prevention Bureau, with the addition of a Fire Inspection Supervisor. Also included on Exhibit "A" is the estimated Structural Fire Tax Credit which offsets the City's Fire/EMS costs. FISCAL IMPACT: The increased costs associated with the implementation of 4.0 staffing on engines is approximately $350,000. In addition, the annual Fire Tax Audit has increased by $963,285 for the 2006-07 fiscal year. Adequate funds have been appropriated in the fiscal year 2006-07 Fire Services budget. ATTACHMENTS: Cooperative Agreement Exhibit "A" A COOPERATIVE AGREEMENT TO PROVIDE FIRE PROTECTION, FIRE PREVENTION, RESCUE AND MEDICAL EMERGENCY SERVICES FOR THE CITY OF TEMECULA THIS AGREEMENT, made and entered into this 14th day of November, 2006, by and between the County of Riverside (hereinafter referred to as "COUNT'I1 and the City of Temecula (hereinafter referred to as "CITY"), whereby it is agreed as follows: SECTION I: PURPOSE The purpose of the Agreement is to arrange for COUNTY, through its Cooperative Fire Programs Fire Protection Reimbursement Agreement ("CDF Agreement") with the California Department of Forestry and Fire Protection ("CDF") to provide CITY with fire protection, fire prevention, rescue, and medical emergency services (hereinafter called "fire protection services"). This Agreement is entered into pursuant to the authority granted by Government Code Sections 55603, 55603.5, 55606, 55632 and 55642, and will provide a unified, cooperative, integrated, and effective fire protection, rescue, and medical emergency services system. COUNTY's ability to perform under this agreement is subject to the terms and conditions of the CDF Agreement. SECTION II: DESIGNATION OF FIRE CHIEF A. The County Fire Chief (hereinafter referred to as "Chief'), appointed by the Board of Supervisors, shall represent COUNTY and CITY during the period of this Agreement and Chief shall, under the supervision and direction of the County Board of Supervisors, have charge of the organization described in Exhibit "A", attached hereto and made a part hereof, for the purpose of providing fire protection services as deemed necessary to satisfy the needs of both the COUNTYand CITY, except upon those lands wherein other agencies of government have responsibility for the same or similar fire protection services. B. COUNTYwill be allowed flexibility in the assignment of available personnel and equipment in order to provide the fire protection services, rescue and medical emergency services as agreed upon herein. C. CITY shall appoint the County Fire Chief referred to in paragraph A of this Section, to be the designated City Fire Chief. In addition, the Chief shall have the authority and responsibility equal to that of a City Department Head for the purposes of administering CITY expenditures under Exhibit "A" of this Agreement. Cooperative Fire Agreement City of Temecula July 1, 2005 to June 30, 2008 10f7 SECTION III: PAYMENT FOR SERVICES A. ClrY shall annually appropriate a fiscal year budget to support the fire services designated at a level of service mutually agreed upon by both parties and as set forth in Exhibit "A." This Exhibit may be amended in writing by mutual agreement by both parties in the event of an increase of salary or expenses or when CITY requests an increase in services. 1. Any changes to the salaries or expenses set forth in Exhibit "A" made necessary by action of the Legislature, CDF or any other public agency with authority to direct changes in the level of salaries or expenses, shall be paid from the funds represented as set forth in Exhibit "A." There shall be no obligation on the part of CITY to expend or appropriate any sum in excess of Exhibit "A" which exceeds the yearly appropriation of CITY for the purposes of the Agreement. If within thirty (30) days after notice, in writing, from COUNTY to CITY that the actual cost of maintaining the services specified in Exhibit "A" as a result of action by the Legislature, CDF or other public agency will exceed the total amount specified therein, and CITY has failed to agree to make available the necessary additional funds, COUNTY shall have the right to unilaterally reduce the services furnished under this Agreement by an appropriate amount and shall promptly notify CITY, in writing, specifying the services to be reduced. Personnel reductions resulting solely due to an increase in employee salaries or expenses occurring after signing this Agreement and set forth in Exhibit "A" to this Agreement shall not be subject to relocation expense reimbursement by CITY. If CITY desires to add funds to the total included herein to cover the cost of increased salaries or services necessitated by actions described herein, such increase shall be accomplished by an amendment to Exhibit "A" and approved by the parties hereto. 2. In the event CITY requests an increase in services and paragraph A.1. of this Section is not applicable, an amendment to Exhibit "A" may be approved by the parties hereto. B. COUNTY provides fire personnel, equipment and services through its CDF Agreement. In the event CITY desires a reduction in STATE civil service employees or services assigned to CITY as provided for in Exhibit "A," when paragraph A.1. of this Section is not applicable, CITY shall provide one hundred twenty (120) days written notice of the requested reduction. Proper notification shall include the following: (1) The total amount of reduction; (2) The effective date of the reduction; and (3) The number of employees, by classification, affected by the proposed reduction. If such notice is not provided, CITY shall reimburse COUNTY for relocation costs incurred by STATE because of the reduction, in addition to any other remedies available resulting from the reduction in services. Cooperative Fire Agreement City of Temecula July 1, 2005 to June 30, 2008 20f7 C. CITY shall pay COUNTY actual costs for fire protection services pursuant to this agreement in an amount not to exceed that set forth in Exhibit "A," as amended. COUNTYshall make a claim to C ITY for the actual cost of contracted services, pursuant to Exhibit "A," on a quarterly basis. CITY shall pay each claim within thirty (30) days after receipt thereof. D. County Fire Chief is authorized to negotiate and execute any amendments to Exhibit "A" of this Agreement on behalf of COUNTY without further authority from the Board of Supervisors. CITY shall designate a "Contract Administrator" who shall, under the supervision and direction of CITY, be authorized to execute amendments to Exhibit "A" on behalf of CITY. SECTION IV: INITIAL TERM AND RENEWAL A. The term of this Agreement shall be from July 1, 2005, to June 30, 2008. Either party to this Agreement may terminate this Agreement by providing a written notice of termination to the other party hereto no less than one year prior to the expiration of the term hereof. If such notice is given unilaterally by COUNT'except any notice issued because of actions of CDF or CITY, COUNTY agrees to continue to provide fire protection services to CITY until such time as CITY has a reasonable opportunity to implement an alternative fire protection service. In no event shall this Agreement be terminated by either party prior to June 30, 2007. B. One year prior to the date of expiration of this agreement, CITY shall give COUNTY written notice of whether CITY intends to enter into a new agreement with COUNTY for fire protection services and, if so, whether CITY intends to change the level of fire protection services from that provided by this agreement. C. If CITY fails to provide such notice, as defined in paragraph B above, COUNTY shall have the option to extend this agreement for a period of up to one year from the original termination date and to continue providing services at the same or reduced level as COUNTY determines would be appropriate during the extended period of this agreement. Six months prior to the date of expiration of this agreement, COUNTY shall give written notice to CITY of any extension of this agreement and any changes in the level of fire protections services COUNTY will provide during the extended period of this agreement. Services provided and obligations incurred by COUNTY during an extended period shall be accepted by CITY as services and obligations under the terms of this agreement. Cooperative Fire Agreement City of Temecula July 1, 2005 to June 30, 2008 30f7 D. The cost of services provided by COUNTY during the extended period shall be based upon the amounts that would have been charged CITY during the fiscal year in which the extended period falls had a new agreement been entered into. Payment by CITY for services rendered by COUNTY during the extended period shall be provided as set forth in Exhibit "A," as amended. SECTION V: TERMINATION FOR CAUSE If CITY fails to remit payments in accordance with any part of this agreement, COUNTY may terminate this agreement and all related services upon 60 days written notice to CITY. Termination of this agreement does not relieve CITY from providing COUNTY full compensation in accordance with terms of this agreement for services rendered. This agreement may be cancelled at the option of either COUNTY or CITY at any time during its term with or without cause, on giving one year written notice to the other party. SECTION VI: COOPERATIVE OPERATIONS All fire protection services contemplated under this Agreement shall be performed by both parties to this Agreement working as one unit; therefore, personnel and equipment belonging to either CITY or COUNTY may be temporarily dispatched elsewhere from time to time for mutual aid. SECTION VII: MUTUAL AID When rendering mutual aid or assistance as authorized in Health and Safety Code Sections 13050 and 13054, COUNTY shall, at the written request of CITY, demand payment of charges and seek reimbursement of CITY costs for personnel as funded herein, under authority given by Health and Safety Code Sections 13051 and 13054. COUNTY, in seeking said reimbursement, will represent the CITY in following the procedures set forth in Health and Safety Code Section 13052. Any recovery of CITY costs, less extraordinary collection expenses, will be credited to the CITY. SECTION VIII: SUPPRESSION COST RECOVERY As provided in Health and Safety Code Section 13009, COUNTY may bring an action for collection of suppression costs of any fire caused by negligence, violation of law, or failure to correct noticed fire safety violations. When using CITY equipment and personnel under the terms of this agreement, COUNTY may, on request of CITY, bring such an action for collection of costs incurred by CITY. In such a case CITY appoints and designates COUNTY as its agent in said collection proceedings. In the event of Cooperative Fire Agreement City of Temecula July 1, 2005 to June 30, 2008 40f7 recovery, COUNTY shall apportion to CITY its pro-rata proportion of recovery, less the reasonable pro-rata costs including legal fees. In all such instances, COUNTY shall give timely notice of the possible application of Health and Safety Code Section 13009 to the officer designated by CITY. SECTION IX: PROPERTY ACCOUNTING All personal property provided by CITY and by COUNTY for the purpose of providing fire protection services under the terms of this Agreement shall be marked and accounted for in such a manner as to conform to the standard operating procedure established by the County Fire Department for the segregation, care, and use of the respective property of each. SECTION X: INDEMNIFICATION A. COUNTY, to the extent permitted by law, agrees to indemnify, defend and hold harmless CITY, its officers, agents and employees from any and all claims for economic losses accruing or resulting to any and all contractors, subcontractors, materialmen, laborers and any other person, firm, or corporation furnishing or supplying work services, materials or supplies in connection with any activities under this agreement; and from any and all claims and losses accruing or resulting to any person, firm or corporation who may be injured or damaged by COUNTY in the performance of any activities under this agreement, except where such injury or damage arose from the sole negligence or willful misconduct attributable to CITY or from acts not within the scope of duties to be performed pursuant to this agreement. B. CITY, to the extent permitted by law, agrees to indemnify, defend and hold harmless COUNTY, its officers, agents and employees from any and all claims for economic losses accruing or resulting to any and all contractors, subcontractors, materialmen, laborers and any other person, firm, or corporation furnishing or supplying work services, materials or supplies in connection with any activities under this agreement; and from any and all claims and losses accruing or resulting to any person, firm or corporation who may be injured or damaged by CITY in the performance of any activities under this agreement, except where such injury or damage arose from the sole negligence or willful misconduct attributable to COUNTY or from acts not within the scope of duties to be performed pursuant to this agreement SECTION XI: AUDIT COUNTY/CITY agree that their designated representative shall have the right to review and to copy any records and supporting documentation pertaining to the performance of this Agreement. COUNTY/CITY agree to maintain such records for Cooperative Fire Agreement City of Temecula July 1, 2005 to June 30, 2008 50f7 possible audit for a minimum of three (3) years after final payment, unless a longer period of records retention is stipulated, and to allow the auditor(s) access to such records during normal business hours and to allow interviews of any employees who might reasonably have information related to such records. SECTION XII: DISPUTES CITY shall select and appoint a "Contract Administrator" who shall, under the supervision and direction of CITY, be available for contract resolution or policy intervention with COUNTY, when, upon determination by the County Fire Chief that a situation exists under this agreement in which a decision to serve the interest of CITY has the potential to conflict with COUNTY interest or policy. Any dispute concerning a question of fact arising under the terms of this agreement which is not disposed of within a reasonable period of time (ten days), shall be brought to the attention of the Contract Administrator. Disputes that are unable to be resolved by CITY and COUNTY representatives will attempt to be resolved through arbitration. If arbitration is unsuccessful, venue for litigation will be the County of Riverside. SECTION XIII: DELIVERY OF NOTICES Any notices to be served pursuant to this Agreement shall be considered delivered when deposited in the United States mail and addressed to: COUNTY County Fire Chief 210 W. San Jacinto Ave. Perris, CA 92570 CITY OF TEMECULA City Manager 43174 Business Park Drive Temecula, CA 92590 Provisions of this section do not preclude any notices being delivered in person to the addresses shown above. Delivery in person shall constitute service hereunder, effective when such service is made. SECTION XIV: ENTIRE CONTRACT This Agreement contains the whole contract between the parties for the provision of fire protection services. It may be amended or modified upon the mutual written consent of the parties hereto. This agreement does NOT supplement other specific agreements entered into by both partners for equipment or facilities, and excepting Cooperative Fire Agreement City of Temecula July 1, 2005 to June 30, 2008 60f7 those equipment or facilities agreements, this agreement cancels and supersedes any previous agreement for the same or similar services. IN WITNESS WHEREOF, the duty authorized officials of the parties hereto have, in their respective capacities, set their hands as of the date first hereinabove written. Dated: CITY OF TEMECULA By: Title: ATTEST: APPROVED AS TO FORM: By: Title: (SEAL) Dated: COUNTY OF RIVERSIDE By: Chairman, Board of Supervisors ATTEST: APPROVED AS TO FORM: NANCY ROMERO Clerk of the Board By: Deputy (SEAL) G.\Property\PSmithIFireICITYStandarctA.greement926.doc Cooperative Fire Agreement City of Temecula July 1, 2005 to June 30, 2008 70f7 I EXHIBIT "A" lRPERA TIVE AGREEMENT ECTION, FIRE PREVENTION, RESCUE Y' SERVICES FOR THE CITY OF TEMECULA ::) OCTOBER 16, 2006 CAPTAIN FAE CAPTAIN ENGINEERS FF II's MEDIC MEDIC ------------ ------------ ------------ ------------ ------------ STA. #12 292,752 2 252,368 2 217,766 2 STA. #73 292,752 2 126,184 1 217,766 2 141,583 (Truck Co.) 439,128 3 378,551 3 653,298 6 STA. #84 292,752 2 252,368 2 217,766 2 162,926 1 (Relief) 292,752 2 126,184 1 326,649 3 424,749 STA. #92 292,752 2 126,184 1 217,766 2 141,583 STA #95 Apr- JunE 73,188 2 63,092 2 54,442 2 - 15 12 19 1 SUBTOTAL STATION COSTS FIRE ENGINE USE AGREEMENT 16,050 each engine [ DEPUTY CHIEF BATTALION CHIEF & FIRE MARSHAL/BC FIRE SAFETY SUPERVISORS FIRE SAFETY SPECIALIST FIRE SYSTEMS INSPECTOR TOTAL STAFF COUNT 166,324 each 193,441 each 91,924 each 82,132 each 63,085 each SUPPORT SERVICES Ad m in istrative/Ope ratio nal Volunteer Program Medic Program Fleet Support ECC Support Comm/IT Support SUPPORT SERVICES SUBTOTAL 10,879 per assigned 8,768 per Voluntee 10,257 per assigned 15,768 per Fire Supr Calls/Station Calls/Station ESTIMATED DIRECT CHARGES TOTAL ESTIMATED CITY BUDGET FF II MEDIC TOTAL ------------ ------------ 249,113 2 1,011,998 8 1 249,113 2 1,027,397 8 1,470,977 12 249,113 2 1,174,924 9 3 249,113 2 1,419,446 11 1 249,113 2 1,027,397 8 , L 81,611 2 272,332 8 - 5 12 7,404,471 64 72,225 4.5 41,581 0.25 386,882 2 183,848 2 246,396 3 252,339 4 75 696,256 64 8,768 1 179,498 17.5 I. 122,202 liP 7.75 192,727 146,814 1,346,265 49,451 9,983,457 * ESTIMATED TEMECULA FIRE TAX CREDIT NET ESTIMATED CITY BUDGET *TAX CREDIT: FIRE TAXES REDEV. TAXES TOTAL Administrative & Operational Services Finance Public Affairs Training Procurement Data Processing Emergency Services Accounting Fire Fighting Equip. Personnel Office Supplies/Equip. SUPPORT SERVICES 5,725,498 813,281 6,538,779 ** 58 Assigned Sta 6 Sept - June c 64 Total AssignE 4.25 Fire Stations 5,598 Number of C, Volunteer Program - Support staff, Workers Comp, and Personal Liabiltiy Insurance Medic Program - Support staff, Training, Certification, Case Review & Reporting Fleet Support - Support staff, automotive costs, vehicle/engine maintenance, fuel costs Emergency Command Center Support - Dispatch services costs Communications / IT Support - Support staff, communications, radio maintenance, computer support functions 16,050 ENGINES 10,879 SRVDEL 8,768 VOL DEL 10,257 MEDIC DEL 49,947 BATT DEL 11,101 ECCSTATION 26 ECC CALLS 15,768 FLEET SUPPC 8,201 COMM/lT STA 193,441 BC 146,376 CAPT 126,184 ENG 108,883 FF II 141,583 FAE MEDIC 124,556 FF II MEDIC 163,221 Div. Chief 162,926 FC MEDIC 82,132 FSS 63,085 FSI 166,324 DEPUTY CH 91,924 FIRE SAFET (6,538,779) 3,444,678 ff ITEM NO.6 Approvals City Attorney Director of Finance City Manager JM.f'" /J/l J1? CITY OF TEMECULA AGENDA REPORT TO: City Manager/City Council FROM: Genie Roberts, Director of Finance DATE: November 14, 2006 SUBJECT: 2006-07 Community Service Funding Program PREPARED BY: Judith M. McNabb, Administrative Assistant RECOMMENDATION: That the City Council review and approve the 2006-07 Community Service Funding Program grants pursuant to the attached spreadsheet outlining the Subcommittee's recommendations of $120,000 to 41 organizations. BACKGROUND: Community Service Funding Program applications were mailed to approximately 85 non-profit organizations in the Temecula Valley area. Applications were sent to community-based organizations that were in the City's database from the last distribution period, as well as those organizations that called or stopped by City Hall requesting an application. In addition to the mailing, advertisements were placed in the local newspapers and the application and guidelines were posted on the City's website. A total of 57 organizations submitted applications requesting $261,033.60 in grant funding. The Subcommittee, along with Staff Members, reviewed the requests for funding based on criteria previously adopted by the entire Council. After review and discussion, the Subcommittee recommends 41 of the 57 organizations receive grants as outlined on the attached spreadsheet, totaling $120,000. The City Council appointed Council Member Mike Naggar and Council Member Maryann Edwards to the 2006-07 Community Service Funding Ad Hoc Subcommittee to allocate grant funds to non-profit organizations that provide community services to the citizens of Temecula. FISCAL IMPACT: Adequate funds are available in the FY 2006-07 CSF line item budget which includes funding of $120,000. ATTACHMENTS: 2006-07 Community Service Funding Program Subcommittee Recommendation Spreadsheet I~ Funding Program Applications l(plii\ ag!!/H!!lj [:zl:ioi!':'(l-7; ~_M [to.._~ ~_.- .~-_._" cNl!m!l'l(lITor,~anrZIlIi'o", fp'--- -a--' Grllntl iu'i..m~".: ".~ ""fll,~Lm, eRe: ",estl l'!!!, ~!!tlJ;~ ""~.-.;;;:~:t,,,_-,,,."..,,..... O'i1"c:.~mm.rii-~.iI~. 1 Alternatives to Domestic Violence Temecula Outreach Program $ 5,000 $5,000 $5,000 Automatic External Defibrillator Training for 2 American Red Cross Riverside County Chapter the Public N/A $5,000 $5,000 Angels at Heart providing services to cancer 3 Angels at Work patients N/A $5,000 $500 4 Assistance League of Temecula Valley Repair and Resurfacing of Parking Lot $5,000 $5,000 $5,000 5 Boys and Girls Club of Southwest County Power Hour and Project Learn $5,000 $5,000 $5,000 6 Boys Scouts of America - Troop 148 Equipment, Registration Fees, Awards $1,500 $5,000 $1,500 7 Boys Scouts of America - Troop 337 Camping Equipment and Kayak $1,500 $2,66890 $1,500 California Inland Empire Council, Boy Scouts of 8 America Scouting for All N/A $4,94650 $- 9 Camp Del Corazon "Have a Heart" Camp Scholarships $4,000 $5,000 $4,000 "Temecula Valley, Home of Canine Support 10 Canine Support Team Inc. Team, Inc." N/A $3,200 $1, 000 CASA (Court Appointed Special Advocates) for Recruitment and training of new community 11 Riverside County, Inc. volunteers N/A $5,000 $2,500 Chaparral High School Education Foundation - 12 Grad Nite Committee CHS Grad Nite - 2007 Grad Nite Celebration $5,000 $5,000 $5,000 13 Christian Mentors Spring Recruitment N/A $5,000 $- Portable Sound Equipment for Touring 14 Christian Youth Theater Performances $2,000 $3,000 $2,000 Citizens' Scholarship Foundation of Temecula Scholarship funds for Chaparral High School 15 Valley Seniors $5,000 $5,000 $5,000 Citizens' Scholarship Foundation of Temecula Scholarship funds for Great Oaks High School 16 Valley Seniors N/A $5,000 $5,000 Citizens' Scholarship Foundation of Temecula Scholarship funds for Temecula Valley High 17 Valley School Seniors $5,000 $5,000 $5,000 Temecula Valley Chamber of Commerce 18 Coalition to Improve Education Student of the Month Program $2,000 $5,000 $2,000 Mike Na ar Abstained 19 Cub Scout Pack #148 Awards, Activities, Equipment $1,500 $2,600 $1,500 20 Empty Cradle - Riverside County Chapter Bereavement Packages, Supplies, Books $1, 000 $5,000 $2,000 21 Fine Arts Network Strength in Partnership $5,000 $5,000 $5,000 22 Golden Valley Music Society Inc. Audience Building N/A $5,000 $1, 000 23 Great Oaks High School Grad Nite Committee GOHS Grad Nite Celebration 2007 N/A $5,000 $5,000 24 Habitat for Humanity Inland Valley Habitat Way Project $5,000 $5,000 $5,000 25 Healthy Management Diabetes Education Diabetes Management Outreach Program N/A $5,000 $500 Equipment needed for "Winter Classical Ballet 26 Inland Valley Classical Ballet Theatre Outreach - Nutcracker" N/A $5,000 $- 27 Kiwanis Club of Temecula - Murrieta Holiday Giving, 5th Grade Band, Key Clubs $2,000 $5,000 $2,000 Michelle's Place - Women's Breast Cancer Community Education and Volunteer Training 28 Resource Center Program $2,000 $1,47820 $1,500 Heritage String Ensemble & Youth String 29 Music Heritage, Inc. Competition $2,000 $4,500 $2,000 30 Musicians Workshop Musicians Workshop Scholarship Program $5,000 $5,000 $5,000 31 Neighborhood Healthcare Children's Health Care $5,000 $5,000 $5,000 Direct Service to Rape Victims / Rape 32 Riverside Area Rape Crisis Center Awareness and Prevention $5,000 $5,000 $5,000 Camp designed for children in the foster care, 33 Royal Family Kids Camp social services system N/A $5,000 $1, 000 San Diego Blood Bank d/b/a Valley Blood 34 Services Blood Donation Center $- $5,000 $1, 000 35 Santa Rosa Plateau Foundation Third Grade Outdoor Education Program N/A $3,500 $- Purchase of equipment, costumes and 36 Shakespeare in the Vines lighting N/A $5,000 $- Attend the Decem ber 2006 Fiesta Bowl's 37 Spirit of Great Oak Band and Color Guard National Band Championship N/A $5,000 $2,500 38 Southwest Women's Chorus (SWC) School Enrichment and Music Library $- $2,640 $- Team Evangelical Assist Ministries (TEA M.) 39 Community Pantry Community Pantry $2,500 $5,000 $2,500 40 Temecula Community Church Restore Pujol Schoolhouse N/A $5,000 $- Mike Naaaar Abstained Maryann Edwards Abstained 41 Temecula Senior Center and Food Banks Emergency Food and Handling $5,000 $5,000 $5,000 42 Temecula Valley Art League TV AL Celebrates the Arts $- $5,000 $- 43 Temecula Valley Garden Club Youth Gardening Workshops for Flower Show $500 $1,500 $500 Reference, Research, and Resource Books 44 Temecula Valley Genealogical Society for new public library $2,000 $5,000 $- Wolfs Tomb Restoration; Plaques and 45 Temecula Valley Historical Society Brochures; The Plaques/Brochures Project $2,500 $5,000 $1,500 46 Temecula Valley Inline Hockey Association Shade Covers for Benches N/A $5,000 $- 47 Temecula Valley Master Chorale Educational Outreach Program 1,500 $5,000 $1,500 Temecula Valley National Alliance on Mental 48 Illness Rent/Lease a meeting space N/A $5,000 $- 49 Temecula Valley Rose Festival Rose Festival 2007 $2,000 $5,000 $2,000 50 Temecula Valley Special Olympics Secure new gymnastic site and equipment N/A $5,000 $1, 000 51 Temecula Valley Woman's Club 22nd Annual Holiday Home Tour $5,000 $5,000 $- Community Concerts, Build Music Library, 52 Temecula Vintage Singers Instrumentalists $1, 000 $1,000 $1, 000 Literacy and Arts Partnership - Growth 53 The Arts Council of Temecula Valley through the Arts (GAP) N/A $5,000 $- Temecula Circle of Care / Bereavement 54 The Elizabeth Hospice Foundation Group Program N/A $5,000 $- The Visiting Nurse Association of the Inland Provide in-home skilled healthcare for 55 Counties (VNAIC) low-income Temecula residents N/A $5,000 $- 56 Vineyard of the New Wine - Circle of Care VNW Circle of Care - Food Distribution $5,000 $5,000 $5,000 57 Western Eagle Foundation Food Box Program N/A $5,000 $- $261,033.60 $120,000 ITEM NO.7 Approvals City Attorney Director of Finance City Manager V /J1l J1? CITY OF TEMECULA AGENDA REPORT TO: City Manager/City Council FROM: Grant Yates, Assistant to the City Manager DATE: November 14,2006 SUBJECT: Adoption of 1 st Reconnaissance Marine Battalion (at the request of Mayor Pro Tem Washington) PREPARED BY: Aaron Adams, Sr. Management Analyst RECOMMENDATION: That the City Council adopt the 1" Reconnaissance Marine Battalion as the official battalion for the City of Temecula BACKGROUND: The Marine Corp 1" Reconnaissance Battalion is led by Lt. Col. J. B. Higgins Jr since July 31,2006. The impressive lineage forthe 1" Recon Battalion dates back to 1937 where they were deployed to Guantanamo Bay, Cuba. This division also experienced a hard fought victory there as well during WW II. From 1950-1964, the Battalion also participated in the Korean War operating from various points on the globe. They relocated during March 1955 to Camp Pendleton and participated in the Cuban Missile Crisis from November-December 1962. They again deployed in September 1965 to Camp Schwab, Okinawa and to the Republic of South Vietnam during 1966. They participated in the war in Vietnam from March 1966-March 1971 and again returned to Camp Pendleton during the spring of 1971. The Battalion has received numerous awards and recognitions for their service to our country (see attached). Just to name a few: Presidential Unit Citation Streamer with One Silver and Three Bronze Stars for WW II, Korea (1950), Korea (1951), Vietnam (1966-67), and Vietnam (1967-68). By adopting a specific battalion, the City of Temecula may forge an official relationship with members of this division and enter into a professional partnership for City special events, color guard ceremonies, and other official functions such as the Mayor's State of the City Address. FISCAL IMPACT: None at this time. The unit insignia ofF irst Reconnaissance Battalion adapts the insignia of the First Marine Division, being that "First Recon" serves that division directly. The division insignia is a night sky blue diamond containing five w"hite, five- pointed stars arrange so as to represent the Southern Gross constellation and a scarlet "]" with "GUADALCANAL" written veltically in the" I" in blue, though it appears in white in the division insignia. AU of this serves to commemorate the division's hard-fought victory thl;lre in World War II. To this insignia, ReCOIl has added the motto, "Swift, 8ile11t, Deadly". "Swift" stauds for how a Recon unit inserts into aud extracts from a misson, as well as how tar the mission itself is conducted to include the rapid disseminatioIl ofintelligellce. "Silent" refers to the mauner in which ReCOIl uses stealth to perform a mission while remaining unobserved aud undetected by the enemy. "Deadly" characterizes the ReconMarine's ability to summon the massive firepower of supporting arms. Recon has also added a skull-aud- crossed-bones with three round holes and a crackin the skull. The holes represent symbolize the pain, hurt, and agony Recon Marilles often face while the crack represents the ability to continue with the mission, despite adverse conditions, First Recon Battalion's insignia resembles that of the First Raider Battalions, used in World War II, to include the Southern Cross, the sk.ull aud the red, white and biue. As the National colors are represented in this, the streamer of scarlet and gold with "1 st Recon Bll" written across the base of the diamond, as well as the gold ofthe words of the motto also remind us of the colors of the Unites States Marine Corps. i 5t Recon - History Page I of7 A History Of The 1st Reconnaissance Battalion Awards/Honors CQl11l11ag<ling Qfficers no this page has beell accessed 371] times since 12 December 98. It was last updated 011 Friday Dee 17th, 1999 at 17001' Weare missing some of the history, awards and commanding officers from later times. If yon can fill in any ofthe blanks, please send all Emfiil 1st Recon Battalion Lineage 1937 - 1940 . Activated 1 March 1937 At Quantico, Virginia as the 1st Tank Company and Assigned to the I st Marine Brigade . Deployed dnring January-March 1940 to the Caribbean on board the USS Wyoming . Relocated during March 1940 to Quantico, Virginia . Redeployed during November 1940 to Guantanamo Bay, Cuba 1941 - 1949 . 1st Marine Brigade redesignated I February 1941 as the 1st Marine Division . Redesignated 1 Marcb 1941 as tbe 1st Scout Company, Division Speeial Troops . Relocatcd during April 194 1 to Quantico, Virginia . Relo<;ated during September 1942 to New River, Norlh Carolina . Reassigned during August 1942 to the 1 st Tank Battalion . Redesignated 1 April 1943 as Company E(Scout), 1st Tank Battalion . Redesignated 10 April 1943 as Company D (Seont), 1st Tank Battalion . Redesignated 9 May 1944 as Reconnaissance Company, Headquarters Battalion . Participated in the Following World War II Campaigns o Guadalcanal o New Guinea o Bismarck Archipelago o Western Caroline Islands o Okinawa . Redeployed during September - Oetober 1945 to Tientsin, Cbina . Relocated during June - July 1947 to Camp Pendleton, California . Redesignated 15 June 1948 as Reconnaissance Platoon, Headquarters Company, Headquarters and Service Battalion . Redesignated 22 March 1949 as RecOlUlaissance Camp. my, Headquarters and Service Battalion http://v.ww,lstrecol1.orglHISTORY,HTM 5/22100 I st Recon - History Page 2 01'7 1950 - 1964 . Deployed during August 1950 to Tokyo, Japan . PElrticipated in the Korean War, Operating From () Pusan Perimeter o Inchon-Seoul o Chasin Reservoir o East Central Front o Western Front . Pmticipated in the Defense of the Korean Demilitarized Zone, July 1953 - March 1955 . Relocated during March 1955 to Camp Pendleton, California . Deactivated 30 April 1958 . Reactivated I May 1958 At Camp Pendleton, Califomia as the 1 st Reeonnaissance Battalion and Assigne.d to the 1st Marine Division . Participated in the Cuban Missile Crisis, November - December 1962 1965 - 1981 . Deployed during August - September 1965 to Camp Schwab, Okinawa . Redeployed during Mareh 1966 to Chu Lal, Republic of South Vietnam . Participated in the war in Vietnam, Mm"eh 1966 - Mm'eh 1971, operating From Chu Lai, Da Nang . Relocated during Mm'ch - April 1971 to Camp Pendleton, California Honors Awarded . Presidential Unit Citation Streamer with One Silver and Three Bronze Stars o World War II . Guadalcanal 1942 . Pelelin, Ngessbus 1944 . Okinawa 1945 o Korea 1950 (3 Times) o Korea 1951 o Vietnam 1966 - 1967 o Vietnam 1967 . 1968 . Navy Unit Commendatioll Streamer with Three Brunze Stars " Korea 1950 o Korea 1952 - 1953 o Vienll1l11 1967 - 1968 o Vietllklm 1970 . American Defense Scrvice Streamer with One Bronze Stm' . Asiatic-Pklcific Campaign Streanler with One Silver and One Bronze Star . World War II Victory Streamer . Navy Occupation Service Stremner ",,-jth Asia Clasp http://w."WW.Istrecon.org/HISTORY.HTM 5/22100 1 st Recon - History Page) of 7 . China Service Streamer . National Defense Service Streamer vvith One Bronze Star . Korean Service Streamer with Two Silver Stars . Armed Forces Expeditionary Streamer . Vietnam Service Streamer with Two Silver Stars and Two Bronze Stars . Korean Presidential Unit Citation Streamer . Vietnam Cross of Gallantry with Palm Streamer . Vietnam Meritorious Unit Citation Civil Actions Streamer . Presidential Unit Citation Streamer with One Silver Star and Three Bronze Stars Q Guadacanal 7 August- 9 December 1942 c PeleHu, Ngesebus and Palau, 15-29 September 1944 o Okinawa, 1 April- 21 June 1945 o Pusan, Korea, 7 Augnst - 7 September 1950 o Inehon, Korea, 15 September -11 October 1950 o Chosin Reservoir, Korea, 27 November - 11 December 1950 o Korea, 21 - 26 ApI', 16 May - 30 June,1 1 - 25 September 1951 o Vietnam, 29 March 1966 - 15 September 1967 () Vietnam, 16 - 30 September 1967 and 2 - 31 October 1968 . Navy Unit Commendation Streamer with Three Bronze Stars o Korea, 12 - 25 August 1959 o Korea, 11 August 1952 - 5 May 1953 and 7 - 27 July 1953 o Vietnam, I October 1967 - 1 October 1968 () Vietnam, 1 January - 31 December 1970 . American Defense Service Streamer with Base ClaspS September 1939 - 7 December 1941 . Asiatic-Pacific Campaign SIrearm.'r with One Silver and One Bronze Star o GuadaJcanal - TuIagi Landings, 7-9 August 1942 o Capt.ure and Defense of GuadaJcal1aI, 10 August - 8 December 1942 o Finschhafim Occupation, 2 October 1943 - 31 December 1943 o Cape Gloucester, New Britian, 26 December 1943 - 1 March 1944 o Capture and Oec\lpation of Southern Palau Islands, 15 September - 14 October 1944 o Assault and Occupation of Okinawa Gunto, I April- 30 June 1945 . Victory Streamer World War II . Navy Occupation Service Streamer with Asia Clasp Okinawa, 2 - 26 September J 945 . China Service Streamer 30 September 1945 - 22 January 1947 . National Defense Serviee Streamer with One Bronze Star . Korean Presidential Unit Citation Streamer 2 August - 6 September 1950 . Korean Service Streamer with Two Silver Stars o North Korean Aggression, 15 September - 2 November 1950 o Communist China Aggression, 3 November 1950 - 24 January 1951 o Inchol1 Landing, 13 - 17 September 1950 o First U.N. Counteroffensive, 25 JanuillY- 21 April 1951 o Commttnist China Spring Offensive, 22 April- 8 July 1951 o U.N, Summer - Fall Offensive, 9 July - 27 November 1951 o Second Korean Winter, 28 November 1951 - 30 April 1952 o Korean Defense, Summer - Fall 1952, 1 May - 30 November 1952 o Third Korean Winter, 1 December 1952 - 30 April 1953 o Korea, Summcr - Fall 1953, I May - 27 July 1953 . Armed Forces Expeditionary Strcamer Cuba, 7 November - 27 November 1962 . VieU1am Cross of Gallantry with Palrn 26 March 1966 - 20 September 1969 . Vietnillll Service Streamcr with Two Silver illld Two Bronze Stars http://www.lstrecon.org/HlSTORY.HTM 5/22/00 j 5t Recoil - History Page 4 of? '.--.,,,- ,...,../ " Vietnamese Counteroffensive, 26 Mareh - 30 June 1966 " Vietnamese Counteroffensive, Phase II, 1 July 1966 - 31 May 1967 o Vietnamese COUllteroffensive,Phase IU, 1 June 1967 . 29 Jan 1968 o Tet Counteroffensive, 30 January - 1 April 1968 o Vietnamese Counteroffensive ,Phase IV, 2 April - 30 June 1968 " Vietnamese Counteroffensive, Phase V, 1 July - I November 1968 o Vieu1lUI1ese Counteroffensive, Phase Vi, 2 Nov 1968 . 22 Peb 1969 o Tet 69 Counteroffensive, 23 pebmary. 8 June 1969 o Vieulam, Summer-Fal! 1969,9 June - 31 October 1969 o Vietllam, Wi nter-Spring 1970, 1 November 1969 - 30 April 1970 o Sanct"afY Counteroffensive, 1 May 1970 - 30 June 1970 o Vietnam Coullteroffensive, Phase Vii, 1 July,1970. 24 March,1971 . Vietnam Meritorious Unit Citation Civil Actions Streamer ~~."-~_._---~~--.~.,.,.,--.--~~,,_..,,.__.^,,-,," $...1 Q) <.) .~ ~ o bJ) ~ . l"""'I o U 6 ....-.1 ....... Ci:$ ...... "d ao (l) Q ~. 00 00 .- ~ s:: o Q (l) ~ ...... 00 ,....... -s (l) 00 ~ ~ 1,0 o o (".l ~ '"a ~ ,....... ("I') $-! ~ 00 s:: .- bi) bi) .. 'fl"""l ~ . ao . ~ The City of Temecula The City Council and the Citizens of the City of Temecula hereby proclaims the adoption of the 1st Reconnaissance Marine Battalion The 1st Reconnaissance Marine Battalion dates back to 1937. This Battalion has served in many wars including WWII. The Battalion has received numerous awards and recognitions for their service to our country including the Presidential Unit Citation Streamer with One Silver and Three Bronze Stars for WWII, Korea (1950), Korea (1951), Vietnam (1955-67), and Vietnam (1967-68). I, Ron Roberts, on behalf of the City of Temecula am honored to present the 1st Reconnaissance Marine Battalion with this Certificate hereby adopting them as the City of Temecula's official Marine Battalion. IN WITNESS WHEREOF, I have hereunto set my hand and caused the Seal of the City of Temecula to be affixed this 14th day of November, 2006 Ron Roberts, Mayor Susan W. Jones, MMC, City Clerk ITEM NO.8 Approvals City Attorney Director of Finance City Manager ~ IJIl !fr CITY OF TEMECULA AGENDA REPORT TO: City Manager/City Council FROM: Mitch Aim, Chief of Police DATE: November 14, 2006 SUBJECT: First Amendment to Agreement with GM Business Interiors PREPARED BY: Heidi Schrader, Management Analyst RECOMMENDATION: That the City Council approves the First Amendment of $5,218.58 to the Purchase and Installation Agreement between the City of Temecula and G/M Business Interiors for a total purchase amount of $35,217.58. BACKGROUND: The City of Temecula Police Department Storefront in Old Town Temecula combines the benefit of a police presence in Old Town with a central location for the community to obtain police services such as filing and obtaining copies of reports. It also serves as the headquarters for the Citizen Action Patrol (CAP), the storage, planning, and implementation location for the Crime Prevention division, and as a central location for Officers to write reports. G/M Interiors installed new integrated workstations in the Old Town Storefront in August 2006. The new furniture provides a professional appearance, and streamlines operations, creating more space for personnel. Due to this increase in space, the Police Department now has room to relocate the Street Enforcement Team to the Old Town Storefront. This will result in a more centralized approach to community enforcement. The additional furniture will ensure adequate workstations for the team. The contract amendment is for an additional $5,218.58 with a total amount not to exceed $35,217.58 for the project. FISCAL IMPACT: (001-170-999-5242) ATTACHMENTS: G/M Business Interiors Adequate funds exist within the 2006-07 Police Department budget. First Amendment to Agreement Between City of Temecula and FIRST AMENDMENT TO AGREEMENT BElWEEN CITY OF TEMECULA AND G/M BUSINESS INTERIORS THIS FIRST AMENDMENT is made and entered into as of November 20, 2006 by and between the City of Temecula, a municipal corporation ("City") and G/M Business Interiors ("Vendor"). 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 June 19, 2006 the City and Vendor entered into that certain agreement entitled "City of Temecula Purchase and Installation Agreement with G/M Business Interiors ("Agreement") in the amount of $29,999.00. B. The parties now desire to increase the payment for services in the amount of $5,218.58 and amend the Agreement as set forth in this Amendment. 2. Section 2 Purchase/Installation Price. of the Agreement is hereby amended to read as follows: The Purchase and Installation price which City agrees to pay to Vendor for the Equipment and service is thirty five thousand, two hundred and eighteen dollars ($35,217.58). The Purchase price is final and shall be paid by City to the Vendor and subconsultants in accordance with Exhibit A, Quotation. 3. Exhibit A 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. 4. Except for the changes specifically set forth herein, all other terms and conditions of the Agreement shall remain in full force and effect. p:/Agreement Samples.Amendment.2006 1 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed the day and year first above written. CITY OF TEMECULA Ron Roberts, Mayor Attest: Susan W. Jones, MMC, City Clerk Approved As to Form: Peter M. Thorson, City Attorney Vendor G/M Business Interiors Attn: Judi Harvey 1099 W. La Cadena Drive Riverside, CA 92501 P: (800) 686-6583 F: ~51) 684-0837 By: Name: Title: By: Name: Title: (Signatures of two corporate officers required for Corporations) -2- P:\AGREEMENTS\EQUIPMENTAND INSTALLATIONOl ATTACHMENT A Attached hereto and incorporated herein is the additional scope of work and associated cost as provided by the Consultant. R:/purchasing/agreement samples.Amendment.2006 3 I'Willi;llm rY;;.. 8:l::':.!:i.:CORslltil;1tr OLD TOWN 5TORF'F.RONt AtJDO'N'~a..(;e.PDr ___. ....,...... ... ..___._..H'~__'~*~'''~.'''''''_'"'"'''''''''''_ -.--. ._.~- ~-~'~f ~~;",~nnID,_\r 'm\Il' :"11'11-' ~~\~~'!"~l.. i' r i\l'l~,m~\ . \, '. ,. \' ~.~ . ,"t' J . 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BACKGROUND: The City of Temecula has been active in seeking grant funding to participate in the Office of Traffic Safety Sobriety Checkpoint Program for Local Law Enforcement Agencies. The goal of the grant is to reduce the number of victims killed and injured in alcohol involved crashes in cities participating in this program. The Temecula Police Department successfully participated in this grant program last year, resulting in 25 DUI arrests from the mini grant checkpoints. Recently the City received approval to utilize $20,028 in grant funding from the Office of Traffic Safety to participate in this program per grant agreement SC073302. The City will be reimbursed for overtime hours for Sergeants, Officers and Community Service Officers to complete sobriety checkpoint operations during the grant mobilization period. The Temecula Police Department will conduct sobriety checkpoints between October 1,2006 and September 30,2007. This time period could encompass two statewide and national mobilization periods between December 15, 2006- January 3, 2007 and August 15, 2007 - September 3, 2007 as well as checkpoints outside the mobilization periods. FISCAL IMPACT: General Fund grant revenues will be increased by $20,028 and will offset the appropriation of $20,028 in the Police Department budget for overtime (Account number 001-170-503-5280.) ITEM NO.1 0 Approvals City Attorney Director of Finance City Manager V ell * CITY OF TEMECULA AGENDA REPORT TO: City Manager/City Council FROM: William G. Hughes, Director of Public Works/City Engineer DATE: November 14, 2006 SUBJECT: Completion and Acceptance of the Pavement Rehab Program FY FY 2005/06 - Diaz Road, Project No. PW05-06 PREPARED BY: Greg Butler, Principal Engineer Avlin R. Odviar, Associate Engineer RECOMMENDATION: That the City Council: 1. Accept the construction of the Pavement Rehab Program FY 2005/06 - Diaz Road, Project No. PW05-06, as complete and; 2. Direct the City Clerk to file and record the Notice of Completion, release the Performance Bond and accept a one year Maintenance Bond in the amount of 10% of the contract amount and; 3. Release the Materials and Labor Bond seven months after filing of the Notice of Completion if no liens have been filed. BACKGROUND: On March 28, 2006, the City Council awarded a construction contract for Project No. PW05-06, Pavement Rehab Program FY 2006/06 - Diaz Road, to R.J. Noble Company of Orange, California in the amount of $2,584,080.20. The project restored the roadway pavement on Diaz Road between Rancho California Road and Winchester Road. In most areas, restoration involved removal and overlay. In other areas, the full depth of roadway structural section was reconstructed. Beneath the roadway, all corrugated metal storm drain pipes were replaced with new reinforced concrete pipes. Other existing features such as utility covers, traffic signal loop detectors, and striping reinstalled or adjusted as necessary. The Contractor has completed the work within the allowed contract time and to the satisfaction of the Director of Public Works/City Engineer, and all work will have a warranty for a period of one (1) year from the date of acceptance by the City. The final construction contract amount is $2,436,230.88. The construction retention will be released on or about thirty-five (35) days after the Notice of Completion has been recorded. FISCAL IMPACT: The Pavement Rehab Program fY 2005/06 - Diaz Road, Project No. PW05-06 is funded by Measure A. The base amount of the construction contract was $2,584,080.20 and four (4) contract change orders were issued in the amounts of CCO NO.1 $9,110.00, CCO NO.2 $0.00, CCO NO.3 $36,946.05 and CCO NO.4 $65,000.00, increasing the total authorized construction contract amount to $2,695,136.25. Actual quantities of some items were over the estimated amount, while others were under. The final construction contract amount, including all change orders and quantity imbalances, is $2,436,230.88, which resulting in a savings of just under $260,000. Of the final construction contract amount, the City will recover $13,050.00 from the Eastern Municipal Water District for work performed on existing sewer facilities, and $4,050.00 from the Rancho California Water District for work performed on existing water facilities. ATTACHMENTS: 1. Contractor's Affidavit and final Release 2. Maintenance Bond 3. Notice of Completion CITY OF TEMECULA, PUBLIC WORKS DEPARTMENT CONTRACTOR'S AFFIDAVIT AND FINAL RELEASE PROJECT NO. PW05.06 PA VEMENT REHAB/LIT A T/ONPROGRAM FY 2005/2006 - D/AZ ROAD This is to certify thatR. J. Noble Co. ,(hereinafter the "CONTRACTOR") declares to the City of Temecula, under oath, that he/she/it has paid in full for all materials, supplies, labor, services, tools, equipment, and all other. bills contracted for by the CONTRACTOR or by any of the CONTRACTOR's agents, employees or subcontractors used or in contribution to the execution of it's contract with the City of Temecula, with regard to the building, erection, construction, or repair of that certain work of improvement known as PROJECT NO. PW05-06, PAVEMENT REHABILITATION PROGRAM FY 2005/2006 - DIAZ ROAD, situated in the City of Temecula, State of California, more particularly described as follows: Pavement Rehab INSERT ADDRESS OR DESCRIBE lOCATION OF WORK The CONTRACTOR declares that it knows of no unpaid debts or claims arising out of said Contract which would constitute grounds for any third party to claim a Stop Notice against of any unpaid sums owing to the CONTRACTOR. . Further, in connection with the final payment of the Contract, the CONTRACTOR hereby disputes the following amounts: Description DollarAmount to Dispute NONE NONE Pursuant to Public Contract Code !j7100, the CONTRACTOR does hereby fully release and acquit the City of Temecula and all agents and employees of the City, and each of them, from any and' all claims, debts, demands, or cause of action which exist or might exist in favor of the CONTRACTOR by reason of payment by the City of Temecula of any contract amount which the CONTRACTOR has not disputed above. CONTRACTOR Dated: 1 n /1 n In/'; ~ , By: ~ '. Signature :Jh Sf-AVA Men'doza. Asst. Se'cretarv Print Name and Title RELEASE R-1 R\CiF'lPROJECTS~PawmenfRehabf'rogfY05..OGDialRcl.SPECS\FW05-06SPECS.OOI CITY OF TEME;CULA, PUBLIC WORKS DePARTMENT BOND NUMBER 104633578 MAINTENANCE BOND FOR PROJE.CT NO. PW05-06 PAVEMENT REHABfUTA nON PROGRAM FY 20/1512006 - DlAZ ROAD KNOW ALL PEiRSONS BY THesE PRESENT THAT: R.J. NOBLE COMPANY NAME AND ADDRCSS CONTRACTOR'S a CORPORATION (IIIIlnwllo/ll!lr.c..J>Ol_,~...indl\IiG\RItI , hereinafter calle<! Prlnclpal.and TRAVELERS CASUALTY AND SURETY COMPANY OF AMERICA NAME AND ADDRESS OF SURE1Y hereinafter called SURElY, are heIcl and firmly bound unto CIlY OF TEMECULA. hereinafter called OWNER, in the penal sum of TIIO HUNDRED FORTY -TBIlEE THOUSAND SIX HUNDRED TwENTY-FOUR DOLLARS and NO . CENtS ($ 243.624.00 -- lln lawful money of the United Stale$. said $UIlI being not less than ten. (10%) of the Contract value payable by the said City of Temecula under the terms of the Contraet. for the payment of which, we bind oursel_, 5IlCI:e$SOl'S. and a$$!gnB, jointly and severally, ffrmly by these presents. THE CONDITION OF THIS OBLIGATION is such that whereas, the Principal ent_d Into a certain Contract.with the 'OWNER, dated the 28th day of MARCH . 2006. a copy of which is here!OaUached and made a part hereof fOf the construGllon of PROJECT NO. PWOS- 06, PAVEMEN'l' REHABILrrATlON PROORAM FY 200512006. DlAZ ROAD. WHEREAS, saId Contract provides tIlat the Principal will furnish a bond conditioned to gUll18ntee for \he perlod of g (1) yea!' af\eI' approval of the final estimate on said job, by. the OWNER. against all defeqts in workmal1$hlp and ,,,atllrials which may become lpp3rent during said period; and . WHEREAS. the'sald Contract has been completed, and was the final estimate approved on_ ,2006. t<<Jw, THEREFPRE. THE CONDITION Of THIS OBLIGATION IS SUCH, that If within one year ftorn the .date of approval of the fine! estimate lln said job pursuant to the Connot. the wort< done under the terms of said COntract shall Cllsctose poor workmanship In the encutlon of Slid work, and the canyjn{J out of the tenllS of Slid Contract, Of It shall appear that defective. materiels were furnished thEll'9Undef, then this obllgallOn shan remain In full force and virtue, otherwise this instrument shaft be wid. As a part of the obligation secured hereby and In acldltlon to the face amount sptlcIfled, costs Bnd reasonable elCPel1$es and fees shaD be included. including reasonable attorney's fees inc;urred by the City of Temecula In. successfully enforcing this llbllgatlon, all to be taxed as costs and lnel\lded In any jUdgment l'$I'lCIered. Ml.ltMlIANCE Bor.tl Mol ~1 Jr~IlS.~""''''''~1IlIl_"",,_ III"'" The Surely herel>y stipulates and agrees that no change. extenslon Of time. aheratlon. 01' addition to the lenns of the Contract. or to the work to be petformed thereunder. or to the specifications accompanying t~e same. shall in any way affect its obligations on this bond. .and 11 does tiereby waive notice- of any such change. extension of time, altemtloll, or addition 10 the lerms of the Contl'l!!cl, or to th!l! work. Of. to the $pedfi<:ations. Signed and sea~ this 11 th day of OCTOBER . 2006. (Seal) COMPANY SURETY By; By: ~IIC (Name) . ATTORNEY-IN~FACT (llU.) (Na.....) PRESIDENT ::~~ STAN HILTON (Name) SECRETARY (lIIls) APPROVED AS'!O FORM: PeIer M. Thonlon. CIty AtIIomey D ~ENANC!!1!1:IOlD M.2 lL__~. _....:*.......,_,.f'IW4nIII~~ i i I I I I i I J I I State of . C1.t: tE:lyni a County of l:)y CWl~t. On to -ll- (Jb before me, (DATE) personally appeared M \cnw -::r: Q.o.V'V'f,(, ?y~s'l~ (NAME(S) OF SIGNERISlI tln-l .sfl.lY\ ~ Mln\ l~ehy-'i I 1<3" Nob~ ~. "fi] personally known to me -OR- D proved to me on the basis of satisfactory evidence to be the person(sl whose name(s) ~/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in Risll'ler/their authorized capacity(ies), and that by I'lis/Asrltheir signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. . ._..~---_._..._~ ~A~_._A_P16- . . t.. NOTARYC:~~~~FORNIA , CI) :; ; COMMISSION # 1439168 5: In , ORANGE COUNTY t _ ~ .'_ ~ .~4S"~~' ~P; ~'r.'~~r2~,:~!J Witness my hand and official seal. . (SEAl) ~~, ISIGNA TURE OF NOTARYI ATTENTION NOTARY The information requested below and in the column to the right is OPTIONAL. Recording of this document is not' required by law and is also optional. It could, however, prevent fraudulent attachment of this certificate to any unauthorized document. THIS CERTIFICATE Title or Type of Document MUST BE ATTACHED TO TlfE DOCUMENT Numb~~ of Pages Date of Document DESCRIBED AT RIGHT: Signerlsl Other Than Named Above WOLCOTTS FORM 63240 Rov. 3-94 {price class 8-2AI ltl1994 WOLCOTTS FORMS~ INC; . ALL PURPOSe ACKNoVin..EOGMENT WITH SIGNER CAPAClTYtREPRES[NTAT10NlTWO FINGERPRINTS RIGHT THUMBPRINT (Optionall . < % ~ i' " o . ~ CAPACITY CLAIMED BY SIGNERIS) DIND1VIDUAl(S) OCORPORA IE OFFICER(SJ millS! DPARTNER(S) DUMITEO DGENERAL OA TTORNEY IN FACT DTRUSTEEISI DGUARDIAN/CONSERVATOR DOTHER: SIONER IS REPRESENTING: IName of Person(s) or Entity(iesl RIGHT THUMBPRINT (OptionaU < . . i i' ~ . ~ CAPACITY CLAIMED BY SIGNERIS) OINDIVIDUALIS) OCORPORA TE OFFlCER{SJ (TITlES! DPARTNERISJ OUMITED DGENERAL DA TIORNEY IN FACT DTRUSTEEISI DGUARDIAN/CONSERVA TOR DOTHER: SIGNER IS REPRESENTING: (NlIme of Person(s) or Entltyliesl 7111~~~~llll~ljl!I!~ 8 CALIFORNIA ALL.PURPOSE ACKNOWLEDGMENT ",. State of California County of RIVERSIDE }ss. .~.6('h"~.c<'H..t'1.">1' . i ~ ~ Ii ~ ~ I Ii ~ I I I ~ On loll/JOY . - before me, R. qllN.~OS "NOTARY PUBLIC" Nikne...a!UeolOlllcel(ag.,"JeAe Doe.Notar)' Publcl. NlIIDI(lJ}ofSlgner(I) 119 personally known to me o proved to me on the basis of satisfactory evidence to be the perso~ whose namep.( isl~ subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her.~hllh euthorized capacity(ieej, and that. by his/fqeF/lIleir signature~on the instrument the person~ or the entity upon behalf of which the person~ acted, executed the instrument., ~ESS my hand and official seal. 'i(.~ SIgnraIufe of NotMy Public opnONAL Though the infonrtBlfonbelow is no! ""I!Iired by low; it mey prove vsluebte /0 persons reIyI.g on the docum&/ll and could prevent fnJudulent fBmoVal and fNtt8chment of this form to another document. Number of Pages: TO!=l 01 thumb ttere ==~~~~w~_~~~~~1 C19l1l1N1tillrVl1Hcil.y~'93I5Oo.SOIt-"P.o._~'~CAI1313-H11'~CII" PfW.NQo,~ fl~c.lIT~I-aoQ~ personally appeared MICHAEL D. STONG PI!lceNcCarySealAboYe Descrlpllon of Attached Dllcumenl Tille or Type of Document; Docuinent Date: Signar{s) Other Than Named Above: Capeclly(les) Claimed by Stgner Signer's Name; o IndMduai o Corporate Officer -11l1e(s): o Partner - 0 limited 0 General o Attomey in Fact o Trustee o Guardian or Conservator o Other: Signer Is Representing; WARNING: lHlS PCJWER OF ATTORNEY IS INVAUO W11HOUTnfE RED BORDER .STPAUL TRAVnfRS POWER OF ATTORNEY . ............. CuuaIty Compaoy FId<Ul,IllIldG__",...~ FloleIityuodGoanmtylnsura_ U_IDC. 8eoboo'" SumyC_y St. PaBI Fire and MarlDe In&unnee Compuy Sl.l'IwI.GuanIIaD -.. c.m_ Sl.l'1ud Men:01"y I......... Com_ 'J\'a....... Caualty.... Surety Ctlmpany 'J\'a...... Casuafty and SuRly Cempany or A_ Uol"" States J1Id<Iity and G_ Compo.,. Allorney-In Fa<I No. 217083 CertItImIe No. 001006708 KNOW ALL MEN BY TH/lSE PRIlSIlNTS: That Seaboald Surely Company i.. cooporati... duly orgsnized under the laws of the State of New Yori<, that St Paul F"are and Marine Insumocc Company. St. Paul GuanfUUl lnsurance Company and St. Paut Mercwy Insurance CampeD1 ~ corporations duly organi:Eed undertbe laws of the State. cf MinlUlsota. that FarmiD&lon Cl$uul!.y Company, Traw:lcrs Cuuahy and Sutety Company, and Travelert Casualty. and Surety Company of America are ~0D5 duly organized under the laws of the State of Connecticut. that United $flI(e!I FuIelity and Guaranty Company is. a. corporation duly organized underthe laws oldie $tate otM:uyland.lhat ~1delity and Guaranty Insurance Company Is a corporation duly 0Ipnf7.ed urKIer the laww of the S~ ofT(lW8. and that Fidelity and GU8ra1'1ty wlIl'ance Underwriters, Inc. is 111 corporation duly organized under the laws of the Stam QfWilfCOOlliin (herein cn~l)' called Ihe "CIHD)Mtries"). and that the. CompanIes do hereby make, consdtl.1tC and appoint Michael D. SIoDg, Shawn Blu.... SullllD C. MOlIICOD, and Rosemary Cimoroo of Ibe City of Riverside . SIBle of Calil"ornia , lhe;r true ODd lawful Allornoy(.)-in-F""t, ead'l in their separate capacity ifmon: than one ia named abow; In sign, execute, seal BUd. 8I;:knowledge IlD)' and all bonds.. recognlzam:es, condllional.undcrtaking.s BDd otber wtidngs ohlfaatOJY in the nature thereof on behalf of the Companies ~~_~ins the fidelity ofpenlOltll, auanmteeina lite pCrfonnancc of contnK::ta and executing or guaranteeing bonds and undertakings required Of' ~a.~ \..~& allowed by law. ~~~~~~~~~\) INWlTNFf,\\~.lbe C_'Wvecau5Cd Ihis i"'~~~9'\~seal'IObeheretoa"",cd, this day of '_' '~~~~ ~ ~V~ Farmfu8tooC_ty c~>>.~ ~\)~. FId<Ul,I and Guaranty O~- JicIeUIy _ Guaranty ... IIderw IDC. 8eoboord SumyCom_ Sf. Paul Fire add Marine 1IIsb1'l.~ CompaJt,. 10th SL Ptud___Compony Sl.l'IwI Merauyl...........C_ ---. CaaooIty and Surely CCllDpOllI' ---. C...aJt1 and Surely Compo"" ~ Auu:riea U_ Slates JicIeUIy and GIllIIOIlty Company e9@ee s.atc of Connecticut City ofHartfoo:lIl.'t. By, ee ~f~ ~w ,'Vi__ - 10th July 2006 Cd thi. the dayof "be..... mepel1OO8l1y appcwod George W. 'I1tompo<oo, _ac1<Mwlcdged bimself co be the Senior Vice PrelIident of Farmington Casualty Con'lplllly, Fidelity and Guaranty lnaurancc Compeny. FkZtity and Ou.uan~ ItJSm1lI1CC lInderwrllefs, Inc.. ~aboard Surety Company, $t, Paul. FiA! >>nd Marine InAurance Company, St. Paul Guardian Inwmu:c Company, St. Paul Mcreu.ry Insurance CompanY. Ttavelus . Casualty and Sumy Company, 'fravelers Casualty und Sun:~ Compuny of America. and Unikd StuCCli Fidelity and Ouanmly ComptlRy. and thaI he.. as s~b. ~II& aulhorized so to do, execuced (be f~ tnslJument fur the purposes therein (:(JI\(ained by signing 00 bcJWto of the corporatiops by .biouelf as a duly authorized officer. Iii WItess Whereof, I hcrewua set my hand and oftlcial seal. My Commission CJlpirc. tile 30lh day of June, 2011. e ~c~~~ 58440.6-06 Printed in U.s.A. WARNI .THIS POWER OF EY IS IIIVALlDWITHOUT_ RED BORIlER WARNING:THlS POWER Of: ATTORNEY IS INVALID WITHOUTTHE RED BORDER This Puwer of AttQtney ill granted under and by die. 8Uthori~ of the fonowilJ& resoIu1ioQJ adopf;ed by the Boards of Din:cmrs ofFarJninpJa Ca&wky Camplmy, Fidelity and """""'>' .......... Compony, FUleIity and Glwa"'Y ,"'...... U_ lnc., s_ S....,. Company, SL Paul Pi... and _ Insuraoec C_any, St. Paul ()@Ulan ,"'!"""'Co Company, St. Paul M.....,. ,_ c....p..y. Travelen; Cuuo1ly and Surely ~ TralOlen Casually and Swety Company of America, and Uoited States fidelity and OuaranlY Company. which resolutions are I10W in full fcree and effect, reading BI f'ollow1: RESOLVIID, thet the CIWnnan, the Presi...... ..y V"", ChaUmen, any _ve Vke FreaIdau, any SenIor V... _. ..y Ill.. -.... ..y Second Vke Ptmdcnt, the Tn:asurcr. any AssiswJ.( Treamet~ die Corporate Secmwy or any A.uJSI8Dt S~Rltary may appointAuormys-in-Fact cd Apot& to;u for wad on bebaIf of die Company IJIId may give !ouch appolnte& such authority as hi. or her ~tc of authority may prescribe to sip. with the ComplDlY's ~ aod seal Wi1h the Company's seal boads. m:ogDiZllDces. contracts of indemnity, and other writinJl fJbliptaIY in the DI1Unl: of a boad, reco,piZllllCe. or aHIltitioall undertUins. aod tiny of said officets or the 8Q;url of Direclors at any time lmY RlmOVC .,. IlUI:h appoiDkICI and rcyom the power giwn him Qt her; and it is I11KJ'JlEll RESOLYBD. that tho OIainnm. the ~ ItJY Va CbainnaP. any Executive Vtte Presidcdt. 88Y SeDiorVic:c President w any VICe President may ddegeoe all... any port of the fore8oing Authorily to .... or"'" 011I_.. __ of1llb Company, provided that each 8UCh delegaIioo b I. wri1lng II1d . cq>y 1bereofis filed in dtc oftiCICI oftbe Sectdary: and II Is . JlUR11IER. JtF.SOLVED, that any bOnd. ~ conbaCt of iDdemoity, or writiDB obliptoty in d1c l!.IItl1m of a bond,. ~ or ccmdilional imdNtakirJs shall be valid and binding upon (be Company when (a) signed by the PnssidI:nt. any Vice Chairman. any lixeculivc Vice PffIaideot. MY St.Wot Vice Ptt:sident or any Vice ....._t, any Second V... Ptosideo. .... 'l\eosoter, Any -. "-"". .... C<xponto Seae1aoy or..y _, SecreIuy ADd ""Iy _ .... ........ wiIh Ihe Company',.... by, 5<=tuy '" As......' SecreIuy; '" (b) duly _ (_seol, if 1OqUiRd) by ODe or IllORl AltonJeyHn-I'ot< ADd........ _ to dIo_ pIaoCribcd in his or her certific:ate or their catificldcS of au&borily QI' by one 01' mom Company oftia:lnl purmaDt lo . wriUm deJeptiOll of audIoril1'. lWd it is. FUR'I'RER RESOLVED, tbal tho sipalUle of each ortbe foUowiq; ofIioen: President. any ExecbtiYe: Vwe Pnlsident. auy Senior VI<< Presidetlt. anyVi<:e Pn:sideot. any A",d,_V"", Presidoot, any Secrellty,..y Assialan,Sec"""'Y. andlhe.... of....Company maybe _ by_to any _of _"'to any cenifi<A1e relodng................ns Residen' V... _, _ _..... S_.... AltonJeyHn-Fnct for _ only of -118'" -.. _ lItId "-;'8" and_writings obligatoly in Ihe -.. _. and ""1 """_of_ ...__ -.. mcl1 roc_.. ........... _...... sha1I be valid and ~ UPO..... Olo1jlII1y and any 8UCh po_.. _ and'- by 8UCh _ ..pIll_.... facsimile .... sI1a1I be .alld and binding no tho Compeoy ill the future with ~ to any bond orundent8ndingto which it is aaw:IJed. I, Kori M.I_..ho..........., A...,;,w,'Sei:may.ofF.........CasuolIyCompony, FidoIi1y andGoaranly _Company. _Iity and lluaronl)' """""'" Undmmtas, IN:.. SeabnanI Surety ComponY. Sl Paul 1""" .... Mari~" <I-....x. SI. PsaI Ouardlan _ c.mpaJlY. St, Foul Mcr<wy """'_ Company. Tmvelers CoswoIIy'" $may CO.....y, Travelen; CuuoIly ADd S . Um,", _ F_ly .... G_ Company do h<<eby omifythalthcabovcandforcgoin.cisabUeandoom:ctcopyoftbe \' ~ '" ~ ~ ompanic$,-whidlisinfullforc:elBCleffecundbasnotbeen - ~?>~. ~'"; ':'>l~ 'S) ~ i'O S~ ~~> I.iL _~r'. . IN Tl!SrlMONYWlmlEOF, [bave.....n..o..tmyhond~~)1~ip.m..dd.l!1Z.L-dayOf ~ . 'O~~ O\j't ~~.' ~ . 1S~'\<t~ ~O'l--~. KariM,1 Aasi_s.......,""' 20th e8€>e(i() eee 'Ib vmf)' tbe, authcntidty of thilll Powet of AttOrney, caD 1~8OI).421~3880 or c:aal8CI Ullll www..lpaubraw1erSboAdxom. Please tefet to 1be Auomey..In-Pact ou.mbet. the above--Damed indMdUBIs IlDd. tho details .of lhe bond to which the power 11 attached, RECORDING REQUESTED BY AND RETURN TO: CITY CLERK CITY OF TEMECULA P.O. Box 9033 43200 Business Park Drive T emecula, CA 92589.9033 NOTICE OF COMPLETION NOTICE IS HEREBY GIVEN THAT: 1, The City of Temecula is the owner of the property hereinafter described. 2. The full address of the City of Temecula is 43200 Business Park Drive, Temecula, California 92590. 3. The Nature of Interest is a Contract which was awarded by the City of Temecula to R.J. Noble Company, P.O. Box 620, Orange, CA 92856 to perform the following work of improvement: PAVEMENT REHABILITATION PROGRAM FY 2005/2006 - DIAZ ROAD Project No. PW05-06 4. Said work was completed by said company accordin9 to plans and specifications and to the satisfaction of the Director of Public Works of the City of Temecula and that said work was accepted by the City Council of the City of Temecula at a regular meeting thereof held on November 14, 2006. That upon said contract the Travelers Casualty and Surety Company of America was surety for the bond given by the said company as required by law. 5. The property on which said work of improvement was completed is in the City of Temecula, County of Riverside, State of California, and is described as follows: Pavement Rehabilitation Program FY2005-2006 - Diaz Road Project No. PW05-06 6. The location of said property is:' Diaz Road, Temecula, California Dated at Temecula, California, this November 14, 2006 City of Temecula Susan W. Jones MMC, City Clerk STATE OF CALIFORNIA COUNTY OF RIVERSIDE ss CITY OF TEMECULA I, Susan W. Jones CMC, City Clerk of the City of Temecula, California and do hereby certify under penalty of perjury, that the foregoing NOTICE OF COMPLETION is true and correct, and that said NOTICE OF COMPLETION was duly and regularly ordered to be recorded in the Office of the County Recorder of Riverside by said City Council. Dated at Temecula, California, this 14'h day of Nobember, 2006 City of Temecula Susan W. Jones MMC, City Clerk R:\CIP\PROJECTS\PW05\PW05-06 Pavement Rehab Prog FY05.06 Diaz Ad\COMPLETION NOTE.doc Form ITEM NO. 11 Approvals City Attorney Director of Finance City Manager V /Ill Yfr CITY OF TEMECULA AGENDA REPORT TO: City Manager/City Council FROM: William G. Hughes, Director of Public Works/City Engineer DATE: November 14, 2006 SUBJECT: Quitclaim portion of Wolf Creek Fire Station site (APN 962-010-009) from City of Temecula to Wolf Creek Development, LLC PREPARED BY: Greg Butler, Principal Engineer - CIP RECOMMENDATION: That the City Council: Adopt a resolution entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA AUTHORIZING THE QUITCLAIM OF PORTIONS OF ASSESSOR'S PARCEL NUMBER 962-01 0-009 TO WOLF CREEK DEVELOPMENT, LLC AND RESERVING AN EASEMENT FOR PUBLIC PURPOSES OVER SAID PROPERTY BACKGROUND: The City of Temecula and S-P Murdy entered into a Development Agreement dated February 3, 2001 which approved land use entitlements for the area commonly known as the Wolf Creek Development. Pursuant to the Development Agreement, S-P Murdy conveyed a 1.5 acre parcel to the City for the City to develop and construct a Fire Station. Standard Pacific Homes operating as Wolf Creek Development, LLC acquired the residential components of the Wolf Creek Developmentfrom S-P Murdy and has been actively building homes or working with other home builders to develop the residential properties. The Wolf Creek Specific Plan requires that the development provide entry monumentation and landscaping at the main entrances. During the planning and design of the entry monuments it was discovered that the 1.5 acre parcel S-P Murdy conveyed to the City for the Fire Station inadvertently conveyed the very small piece of property on the corner of Wolf Valley Road & Wolf Creek Drive south needed for one of the entry monuments. The design of the Wolf Creek Fire Station was completed assuming this portion of the property was reserved for the entry monument, thus this transfer will not have an impact on the City's planned Wolf Creek Fire Station. Therefore, it is Staff's recommendation that the City quitclaim that portion of the fire station property to the developer, Wolf Creek, LLC. Wolf Creek, LLC will, in turn, dedicate the property to the homeowners association. The homeowners association will become the responsible party for the operation and maintenance of the completed entry monument and landscaping. A blanket easement allowing the City to utilize the property for public purposes as necessary and convenient is included in the quitclaim deed. The attached quitclaim deed has been prepared by the Public Works Department and reviewed by the City Attorney. It is staff's recommendation that the Quitclaim Deed be approved by the City Council for the quitclaim of the portion of the fire station site (APN 962-010-009) described in Exhibits "A" and "B" attached thereto to Wolf Creek LLC. FISCAL IMPACT: None ATTACHMENTS: 1. Resolution No. 2006_ 2. Quit Claim Deed with Exhibit "A" and Plat labeled Exhibit "B" RESOLUTION NO. 06- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA AUTHORIZING THE QUITCLAIM OF PORTIONS OF ASSESSOR'S PARCEL NUMBER 962- 010-009 TO WOLF CREEK DEVELOPMENT, LLC AND RESERVING AN EASEMENT FOR PUBLIC PURPOSES OVER SAID PROPERTY THE CITY COUNCIL OF THE CITY OF TEMECULA DOES RESOLVE, DETERMINE AND ORDER AS FOLLOWS: WHEREAS, the City of Temecula and S-P Murdy entered into a Development Agreement dated February 3, 2001, and recorded on October 3, 2001 as Instrument Number 2001-481217 of Official Records of the County of Riverside ("Development Agreement"); and WHEREAS, Wolf Creek Development, LLc acquired from S-P Murdy, LLC portions of its interest in the Development Agreement; and WHEREAS, pursuant to said Development Agreement, S-P Murdy, LLC, the underlying fee owner conveyed interest in real property, now identified as Assessor's Parcel Number 962-010-009, by Grant Deed to the City; and WHEREAS, as part of the conveyance of said real property interest, the underlying fee owner inadvertently conveyed portions of Assessor's Parcel No. 962- 010-009 described on the legal description and depicted on the map attached to the Quitclaim Deed as Exhibits "A" and "B" respectively (referred to as the "Property"), attached as Exhibit "1" hereto and incorporated herein by this reference; and WHEREAS, Wolf Creek Development, LLC, the current developer of the Wolf Creek Development (the "Development Project"), needs the Property for monument and related uses in connection with the Development Project approved pursuant to the Development Agreement; and WHEREAS, the City of Temecula hereby determines that it does not need the fee interest in the Property for public purposes; and WHEREAS, Wolf Creek Development, LLC has agreed to accept a quitclaim of the Property for monument and related uses in connection with the Development Project approved pursuant to the Development Agreement discussed above; and WHEREAS, the City of Temecula shall reserve for itself, its successors and assigns a blanket easement on, over and across the Property for public purposes, which include, but are not limited to access, repair, drainage, utilities and all uses necessary or convenient thereto over the Property. WHEREAS, the City Council ofthe City of Temecula hereby desires to quitclaim to Wolf Creek Development, LLC the Property described in Exhibits "A" and "B" of the Quitclaim Deed attached as Exhibit "1" hereto. THEREFORE, BE IT RESOLVED, that the City Council approves that certain "Quitclaim Deed" attached as Exhibit "1" hereto and authorizes the Mayor to execute the Quitclaim on behalf of the City. PASSED, APPROVED, AND' ADOPTED by the City Council of the City of Temecula this 14th day of November, 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 14th day of November, 2006, by the following vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: COUNCIL MEMBERS: ABSENT: ABSTAIN: COUNCIL MEMBERS: Susan W. Jones, MMc City Clerk Recording Requested by and when recorded return to: CITY OF TEMECULA Attention: City Cterk 43200 Business Park Drive Post Office Box 9033 Temecula, CA 92589-9033 WOLF CREEK DEVELOPMENT LLC, A California Limited Liability Corp. 255 East Rincon Street, Suite 200 Corona, California 92879 Recording Fee: Exempt pursuant to Government Code gg 6103 and 27383 SPACE ABOVE THIS LINE FOR RECORDER'S USE The undersigned grantor dec1are(s): This Quitclaim Deed is for DPortions of APN 962-010-009 Documentary Transfer Tax is $_.00 D computed on the full value of property conveyed, or D computed on the full value less the value of liens or encumbrances remaining thereon at the time of sale. QUITCLAIM DEED This QUITCLAIM DEED is entered into between the CITY OF TEMEcULA, a municipal corporation, hereinafter referred to as "Grantor" and WOLF CREEK DEVELOPMENT LLC, A California Limited Liability Corporation, hereinafter referred to as "Grantee" and is effective as of October 24, 2006. RECITALS WHEREAS, Grantor and S-P Murdy, LLc entered into a Development Agreement dated February 3, 2001, and recorded on October 3,2001 as Instrument Number 2001-481217 of Official Records of the County of Riverside (referred to below as "Development Agreement"), which is incorporated herein by this reference; and WHEREAS, pursuant to the terms of said Development Agreement, Grantor acquired certain real property interests for public purposes; and WHEREAS, WOLF CREEK DEVELOPMENT, LLC acquired from S-P Murdy, LLC its interest in and to said Development Agreement; and 915476-3 WHEREAS, as part of the conveyance of said real property interests for public purposes, Grantor had dedicated to it that certain real property in the City of Temecula, County of Riverside, State of California, hereinafter referred to as "the Property" identified as portions of Assessor's Parcel No. 962-010-009, which is described on the legal description and depicted on the map attached hereto as Exhibits "A" and "B" and incorporated herein by this reference; and WHEREAS, as part of said conveyance, Grantee or Grantee's predecessor in interest S-P Murdy, LLC inadvertently transferred to Grantor the Property that Grantee needs to use for monument and related uses in connection with the Development Project approved pursuant to the Development Agreement discussed above; and NOW, TEIEREFORE, Grantor and Grantee hereby agree as follows: For valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Grantor hereby REMISES, RELEASES AND QUITCLAIMS to Grantee all of Grantor's right, title and interest in the Property described above located in the City ofTemecula, County of Riverside, State of California and depicted on the map attached hereto as Exhibit "B," which is incorporated herein by this reference, without representation or warranty, express or implied, and subject to all matters of record and any and all other matters affecting said Property. Grantor, however, reserves for itself, its successors and assigns a blanket easement on, over and across the Property for public purposes, which include, but are not limited to access, repair, drainage, utilities and all uses necessary or convenient thereto. Said blanket easement is congruent with the portion of APN 962-010-009 that is the subject of this Quitclaim Deed, which is described and depicted on Exhibits "A" and "B" hereto and incorporated herein by this reference. 915476-3 IN WITNESS WHEREOF, these presents are hereby signed this _ day of October 2006. GRANTOR CITY OF TEMECULA, a municipal corporation By: Ron Roberts, Mayor ATTEST: SUSAN JONES, MMC, City Clerk Approved as to form: PETER M. THORSON, City Attorney GRANTEE WQLF CREEK DEVELOPMENT, LLC By: Title: By: Title: 915476-3 EXHIBIT "A" LEGAL DESCRIPTION BEING A PORTION OF A PARCEL OF LAND IN THE CITY OF TEMECULA, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, PER GRANT DEED RECORDED AUGUST 1,2003 AS INSTRUMENT NO. 2003-582234, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, OFFICIAL RECORDS, ALSO PER TRACT 29305 AS SHOWN BY MAP ON FILE IN BOOK 378, PAGES 36 THROUGH 48, INCLUSIVE, OF MAPS, OFFICIAL RECORDS OF SAID COUNTY, MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING AT THE CENTERLINE INTERSECTION OF WOLF VALLEY ROAD AND WOLF CREEK DRIVE S. AS SHOWN ON SAID MAP; THENCE ALONG THE CENTERLINE OF SAID WOLF CREEK DRIVE S., SOUTH 52005'35" EAST, A DISTANCE OF 70.00 FEET; THENCE LEAVING SAID CENTERLINE NORTH 37054'25" EAST, A DISTANCE OF 33.00 FEET, TO AN ANGLE POINT IN THE RIGHT-OF-WAY OF WOLF CREEK DRIVE S., AS SHOWN ON SAID MAP; THENCE LEAVING SAID ANLGE POINT NORTH 05054'06" EAST, A DISTANCE OF 28.30 FEET TO AN ANGLE POINT IN THE RIGHT-OF-WAY OF WOLF VALLEY ROAD AS SHOWN ON SAID MAP; THENCE LEAVING SAID ANGLE POINT ALONG SAID RIGHT-OF-WAY LINE OF WOLF VALLEY ROAD, NORTH 3r54'25" EAST, A DISTANCE OF 6.00 FEET, TO THE TRUE POINT OF BEGINNING, SAID POINT ALSO BEING THE MOST NORTHERLY CORNER OF LOT 29 OF SAID MAP; THENCE LEAVING SAID RIGHT-OF-WAY ALONG THE NOTHEASTERL Y LINE OF SAID LOT, SOUTH 52005'35" EAST, A DISTANCE OF 23.51 FEET TO A POINT ON A NON-TANGENT CURVE, CONCAVE EASTERLY, HAVING A RADIUS OF 16.00 FEET, A RADIAL TO SAID POINT BEARS SOUTH 76031 '55" WEST; THENCE LEAVING SAID NORTHEASTERLY LINE, NORTHERLY ALONG SAID CURVE, THROUGH A CENTRAL ANGLE OF 51022'30", AN ARC LENGTH OF 14.35 FEET; THENCE TANGENT TO SAID CURVE, NORTH 3r54'25" EAST, A DISTANCE OF 18.50 FEET; THENCE SOUTH 52005'35" EAST, A DISTANCE OF 1.50 FEET; THENCE NORTH 37054'25" EAST, A DISTANCE OF 24.00 FEET; 4/13/2006 Page 1 of2 EXHIBIT "A" LEGAL DESCRIPTION THENCE NORTH 52005'35" WEST, A DISTANCE OF 8.00; THENCE SOUTH 37054'25" WEST, A DISTANCE OF 4.00 FEET; THENCE NORTH 52005'35" WEST, A DISTANCE OF 13.00 FEET TO A POINT IN THE RIGHT-OF-WAY LINE OF SAID WOLF VALLEY ROAD; THENCE ALONG SAID RIGHT-OF-WAY LINE, SOUTH 37"54'25" WEST, A DISTANCE OF 51.00 FEET TO THE TRUE POINT OF BEGINNING. THE ABOVE DESCRIBED PARCEL CONTAINS 977 SQUARE FEET OR 0.02 ACRES, MORE OR LESS. EXHIBIT "B" ATTACHED HERETO AND BY THIS REFERENCE MADE A PART HEREOF. ^ 03/06 DATE ANTH NY J. TERlcH, R.c.E. 21914 EXPIRATION DATE 9/30/07 4/13/2006 Page 2 of2 \ \ \ ~ fO 0 2r-t '~ IU1lc19' J I SCALE: 1" - 20' \ \ \ \ \ \ N52'05'35':,W I ~ &~ EASMENTS \ ';? '1.& FOR DRAINAGE PURPOSES IN 11.00' FAVOR OF THE PUBUC PER \ INSTR. NO. 72299. 3/19/89 Ul VJ 'I LEGEND \ ~ j P.O.C. POINT OF COMMENCEMENT j -1>. ,T.P.O.B. TRUE POINT OF BEGlNNIN'1 -1>. ~ II. I INDICATES EASEMENT\ '" -:i AREA = 977 S. F. Ul. -I> J \: & ) i [L(\))1I "~" 1I1Rl, ~!03lIDl@o ~ \ ~ ~ \ ~,~, 3l@IDl!~@o1~ \ 01 CL' >-\ ~I .-.J, ;I~ '':,f- LL-It: .-.J,~ ~I eJ\ , 552'05' 35"E 23.51' \ € 6.00' .I.ij \ \ I!! [L(\))1I ~!0I1IRl, ~!03lIDl@ ~,~, 1o\S'.~ \ /; 3l1~!3l~o~~ \ \S' <t>. /~\ "'06'. \-i- R/~ - - - - -- \ ~ ~ \J - N52~5"5.W \ ~.I~\ [L(\))1I "If:i," IIIRl ~!03lIDl@ ~,~, \J\ \ 0. 3l1~!3l~o~~ P.O.C. , \ --: \)\ I-ct W.Q1UBI-~~-- _~'_~~~-~~----~-\bR\VE s. \ \ \ T.P.O.B. EXHIBIT "B" WOLF VALLEY ROAD SITE , WOLF CREEK PROJECT VICINITY MAP z VJ -..J "" -I>Ul .-1> o . 0'" . Ul. r<i ((;~n (\))11" 1I~~~((;I!J[L1f:i, ~~1Rl @1Rl1f:i,1NI11 [Q)~~[Q) 1Rl~((;(\))IRl[Q)~[Q) ~!IDl~!~IDlIDl3lIf:i,,& ~1NI'&1I, INI(\)). ~1Dl1Dl3lo@~~~3l~ (\))1F1F~((;~If:i,[L 1Rl~((;(\))IRl[Q),& (\))11" 1Rl~'\,i'~IRl,&~[Q)~ ((;(\))l!JlNln, ((;If:i,UIF(\))IRlINI~1f:i, 552'05'35"E 1.50' N3T54'25"E . 18.50' &=51'22'30" R=16.00' L=14.35' - N52:O;;-3~ -- - ITEM NO. 12 Approvals City Attorney Director of Finance City Manager ~ 11/2 J/ CITY OF TEMECULA AGENDA REPORT TO: City Manager/City Council FROM: William G. Hughes, Director of Public Works/City Engineer DATE: November 14, 2006 SUBJECT: Acceptance of certain Public Streets into the City-Maintained System within Tract Map Nos. 29928, 29928-1,29928-2, and 29928-3 (Located west of Margarita Road, south of Date Street and north of Harveston Way within the Harveston Subdivision) PREPARED BY: Ronald J. Parks, Deputy Director of Public Works Steve Charette, Associate Engineer RECOMMENDATION: That the City Council: 1. Adopt a resolution entitled: RESOLUTION NO. 06- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA ACCEPTING CERTAIN PUBLIC STREETS INTO THE CITY-MAINTAINED SYSTEM (WITHIN TRACT NOS. 29928, 29928-1, 29928-2 AND 29928-3) BACKGROUND: Tract Map Nos. 29928, 29928-1,29928-2 and 29928-3 were recorded by the County Recorder on September 17, 2002. The owner dedicated to public use for street and public utility purposes streets designated as lettered lots on the four maps. The City Clerk accepted the offers of dedication. Public Works Staff reviewed and inspected the public improvements and all required repairs and replacements were satisfactorily completed. However, the one-year Warranty Bonds and Labor and Materials Bonds have not been released. The Warranty Bonds will be released at the end of the one-year period in October, 2007. The Labor and Materials Bonds will be released six months into the one-year warranty period in April 2007. The public streets now being accepted by this action are as follows: Tract 29928 Williamsburg Place, Ann Arbor Place, New Haven Road, Camden Court and a portion of Lexington Road. Tract 29928-1 Wellsley Court, and a portion of Providence Road. Tract 29928-2 Nantucket Road, Columbia Place, Cambridge Place and a portion of Bridgehampton Road. Tract 29928-3 Evanston Place, Westchester Court, and portions of Lexington Road and Bridgehampton Road. FISCAL IMPACT: Periodic surface and / or structural maintenance will be required every 5 to 8 years. ATTACHMENTS: Resolution No. 06 - with Exhibits "A - B" inclusive. EXHIBIT "A" TO RESOLUTION NO. 2006 - Accepting a certain public street offered to and accepted by the City of Temecula as indicated on Tract Maps 29928, 29928-1,29928-2 and 29928-3 into the City-Maintained Street System as described as follows: Tract Map 29928 1. Lot "A" (Ann Harbor Place) of said Tract Map No. 29928 2. Lot "B" (Williamsburg Place) of said Tract Map No. 29928 3. Lot "c" (New Haven Road) of said Tract Map No. 29928 4. Lot "D" (portion of Lexington Road) of said Tract Map No. 29928 5. Lot "E" (Camden Court) of said Tract Map No. 29928 Tract Map 29928-1 1. Lot "A" (portion of Wells ley Court) of said Tract Map No. 29928-1 2. Lot "B" (portion of Providence Road) of said Tract Map No. 29928-1 3. Lot "c" (portion of Providence Road) of said Tract Map No. 29928-1 4. Lot "D" (portion of Wellsley Court) of said Tract Map No. 29928-1 Tract Map 29928-2 1. Lot "A" (Columbia Place) of said Tract Map No. 29928-2 2. Lot "B" (portion of Bridgehampton Road) of said Tract Map No. 29928-2 3. Lot "c" (Nantucket Road) of said Tract Map No. 29928-2 4. Lot "D" (Cambridge Place) of said Tract Map No. 29928-2 Tract Map 29928-3 1. Lot "A" (Evanston Place) of said Tract Map No. 29928-3 2. Lot "B" (portion of Lexington Road) of said Tract Map No. 29928-3 3. Lot "c" (Westchester Court) of said Tract Map No. 29928-3 4. Lot "D" (portion of Bridgehampton Road) of said Tract Map No. 29928-3 RESOLUTION NO. 06-00 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA ACCEPTING CERTAIN PUBLIC STREETS INTO THE CITY-MAINTAINED SYSTEM (WITHIN TRACT MAP NOS. 29928, 29928-1, 29928-2 AND 29928-3) THE CITY COUNCIL OF THE CITY OF TEMECULA DOES HEREBY RESOLVE AS FOLLOWS: WHEREAS, On September 23, 2002, the County Recorder recorded Tract Map Nos. 29928, 29928-1, 29928-2 and 29928-3 in which an offer of dedication for street and public utility purposes was accepted by the City of Temecula from Lennar Homes of California, Inc;; and, WHEREAS, City Public Works Staff reviewed and inspected the public improvements and all repairs and replacements were satisfactorily completed; and, WHEREAS, Only the Warranty Bond and Labor and Material Bond pertaining to this tract have not been released; and, NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Temecula hereby accepts into the City-Maintained Street System the streets offered to and accepted by the City of Temecula described in Exhibits "A" and "B" attached hereto. ~ PASSED, APPROVED, AND ADOPTED by the City Council of the City of Temecula this 14th day of November, 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 14th day of November, 2006, by the following vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: ABSTAIN: COUNCILMEMBERS: COUNCILMEMBERS: Susan W. Jones, MMC City Clerk EXHIBIT "A" TO RESOLUTION NO. 2006 . Accepting a certain public street offered tO,and accepted by the City of Temecula as indicated on Tract Maps 29928, 29928-1, 29928-2 and 29928-3 into the City-Maintained Street System as described as follows: Tract Map 29928 1. Lot "A" (Ann Harbor Place) of said Tract Map No. 29928 2. Lot "B" (Williamsburg Place) of said Tract Map No. 29928 3. Lot "C" (New Haven Road) of said Tract Map No. 29928 4. Lot "D" (portion of Lexington Road) of said Tract Map No. 29928 5. Lot "E" (Camden Court) of said Tract M!3p No. 29928 Tract Map 29928-1 1. Lot "A" (portion of Wellsley Court) of said Tract Map No. 29928-1 2. Lot "B" (portion of Providence Road) of said Tract Map No. 29928-1 3. Lot "C" (portion of Providence Road) of said Tract Map No. 29928-1 4. Lot "0" (portion of Wellsley Court) of said Tract Map No. 29928-1 Tract Map 29928-2 1. Lot "A" (Columbia Place) of said Tract Map No. 29928-2 2. Lot "B" (portion of Bridgehampton Road) of said Tract Map No. 29928-2 3. Lot "C" (Nantucket Road) of said Tract Map No. 29928-2 4. Lot "0" (Cambridge Place) of said Tract Map No. 29928-2 Tract Map 29928-3 1. Lot "A" (Evanston Place) of said Tract Map No. 29928-3 2. Lot "B" (portion of Lexington Road) of said Tract Map No. 29928-3 3. Lot "C" (Westchester Court) of said Tract Map No. 29928-3 4. Lot "D" (portion of Bridgehampton Road) of said Tract Map No. 29928-3 EXHIBIT "B" TO RESOLUTION NO. 2006-_ TRACT NO. 29928 VICINITY MAP ""<< ~~t' 14 ... ~ :::~ !~ - I '" ::;! "'I NCQ ~ to . /" 'z:ci~ I ~ ill ~ -. .~~ ~~ I-'~.J :s KINGW~ ~ ~ ROAD -~ 5 -, I ~ ~ :: ~ i,~~ ~ gJ~lw~l" -R -.......,I-~:2 ;~ L"<tI~15~ It ~ ..JI~! ~ ~iJ(:)u 8 I- I ~',I 'I< ~~,~ ..~~ .,. "1/ . \\ - \\ - \\~ ~- \\ TRACT NO. 2992B-3 M.B. "32."5 / 71~7~ ~ .. , .~ ~ .,j> CAIoIlEN co.m LOT E 'I< ~ ~ iSle -9 .... · -9 ~ ~ ~.... ";)'" .c- - (') EXHIBIT "B" TO RESOLUTION NO. 2006-_ TRACT NO. 29928-1 VICINITY MAP ""u. :f''*'c- J;., EXHIBIT "B" TO RESOLUTION NO. 2006-_ TRACT NO. 29928-2 VICINITY MAP .w" ~~..... q.. -":I /-1 _J I ill _J. ~ . J ~ " "ot - . '" coo ;n ~ lP" g: - l ~I ~aj -I i ~ I-~--l~ !!III '" k ~ II --1tJ ~ II J () II TRAF ALGAR '} II ..') I! TRACT NO. 29286 I / I M.~. 2f8/f6-f9 I I I WINCHESTER .... CREEK I I. I I L l.vm ;cloRJm 1.. ~I!.:U~ - '- - - -1_ - \S"'2~1'35" 1399.68'], [nS.99' _ <623.69 > - elL MARG IT" ROAD N42-5"3S.W . _ _ -- - - -- . -------- ~ ~ [;l .. ~ .., - I '" "'(I <DID "'. "'e, 0,"" '" :z:'" t;li: 6 ~aj -l I-~ 6 -l EXHIBIT "B" TO RESOLUTION NO. 2006-_ TRACT NO. 29928-3 VICINITY MAP Ii ...." 'l'0l<<): '4 Ill: TRACT NO. 28184 T CT fjO. 29111-1 ~ M.S. 296/74-80 . li~ 1s)" 304)68174 1 ~~.. I ", I I ~>-ll I I \ ), ~!ii1~Jt__l....l_L).~ / .l._L~~ LLL...Y../; C L DATE STREET _ "'7"56'13"E '132<.74'] r / ~;..d:::- _[N48'11'<5"E 751.49') I ITY </,....m.u 1lOlNlNIY~-T= <565.31 '> 19 N47.56'f3~E 61470' CD . '. I ~- , ~....,. TRACT NO. 29928-2 M,S. 32.' I 6'-70 ~ (- I l I 1-- . Q\- to L.:s 0 _'" :ri '10:: N co I-~ L'" I ~_ <( ft-l.D IIll ....1 .~ 15~ ~- @-lXl Ii!!!ll (!II g: I~~ ~r tr <Ii I! t-~::E ~ .... I .......1---- I I ITEM NO. 13 Approvals City Attorney Director of Finance City Manager ~ /J12 Ji? CITY OF TEMECULA AGENDA REPORT TO: City Manager/City Council FROM: William G. Hughes, Director of Public Works/City Engineer DATE: November 14, 2006 SUBJECT: Acceptance of certain Public Streets into the City-Maintained System within Tract Map Nos. 29929 and 29929-1 (Located west of Margarita Road, south of Date Street and north of Harveston Way within the Harveston Subdivision) PREPARED BY: Ronald J. Parks, Deputy Director of Public Works Steve Charette, Associate Engineer RECOMMENDATION: That the City Council: 1. Adopt a resolution entitled: RESOLUTION NO. 06- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA ACCEPTING CERTAIN PUBLIC STREETS INTO THE CITY-MAINTAINED SYSTEM (WITHIN TRACT NOS. 29929 AND 29929-1 ) BACKGROUND: Tract Map Nos. 29929 and 29929-1 were recorded by the County Recorder on September 17, 2002. The owner dedicated to public use for street and public utility purposes streets designated as lettered lots on the two maps. The City Clerk accepted the offers of dedication. Public Works Staff reviewed and inspected the public improvements and all required repairs and replacements were satisfactorily completed. However, the one-year Warranty Bonds and Labor and Materials Bonds have not been released. The Warranty Bonds will be released at the end of the one-year period in October, 2007. The Labor and Materials Bonds will be released six months into the one-year warranty period in April 2007. The public streets now being accepted by this action are as follows: Tract 29929 Worthington Place, Davenport Court, and portions of Bristol Road. Tract 29929-1 Newport Road, Lake Front Road, Booth Bay Road, Stowe Road and portions of Landings Road and Bristol Road. FISCAL IMPACT: Periodic surface and / or structural maintenance will be required every 5 to 8 years. ATTACHMENTS: Resolution No. 06 - with Exhibits "A - B" inclusive. EXHIBIT "A" TO RESOLUTION NO. 2006 - Accepting a certain public street offered to and accepted by the City of Temecula as indicated on Tract Maps 29929 and 29929-1 into the City- Maintained Street System as described as follows: Tract Map 29929 1. Lot "A" (portion of Bristol Road) of said Tract Map No. 29929 2. Lot "B" (portion of Bristol Road) of said Tract Map No. 29929 3. Lot "c" (Worthington Place) of said Tract Map No. 29929 4. Lot "D" (Davenport Court) of said Tract Map No. 29929 Tract Map 29929-1 1. Lot "A" (Newport Road) of said Tract Map No. 29929-1 2. Lot "B" (Lake Front Road) of said Tract Map No. 29929-1 3. Lot "c" (Booth Bay Road) of said Tract Map No. 29929-1 4. Lot "D" (portion of Landings Road) of said Tract Map No. 29929-1 5. Lot "E" (Stowe Road) of said Tract Map No. 29929-1 6. Lot "F" (portion of Bristol Road) of said Tract Map No. 29929-1 RESOLUTION NO. 06-00 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA ACCEPTING CERTAIN PUBLIC STREETS INTO THE CITY-MAINTAINED SYSTEM (WITHIN TRACT MAP NOS. 29929 AND 29929-1) THE CITY COUNCIL OF THE CITY OF TEMECULA DOES HEREBY RESOLVE AS FOLLOWS: WHEREAS, On September 23, 2002, the County Recorder recorded Tract Map Nos. 29929 and 29929-1 in which an offer of dedication for street and publiC utility purposes was accepted by the City of Temecula from Lennar Homes of California, Inc.; and, WHEREAS, City Public Works Staff reviewed and inspected the public improvements and all repairs and replacements were satisfactorily completed; and, WHEREAS, Only the Warranty Bond and Labor and Material Bond pertaining to this tract have not been released; and, NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Temecula hereby accepts into the City-Maintained Street System the streets offered to and accepted by the City of Temecula described in Exhibits "A" and "B" attached hereto. PASSED, APPROVED, AND ADOPTED by the City Council of the City of Temecula this 14th day of November, 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 re9ularly adopted by the City Council of the City of Temecula at a meeting thereof held on the 14th day of November, 2006, by the following vote: AYES: NOES: COUNCILMEMBERS: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: COUNCILMEMBERS: ABSTAIN: Susan W. Jones, MMC City Clerk EXHIBIT "A" TO RESOLUTION NO. 2006 - Accepting a certain public street offered to and accepted by the City of Temecula as indicated on Tract Maps 29929 and 29929-1 into the City- Maintained Street System as described as follows: Tract Map 29929 1. Lot "A" (portion of Bristol Road) of said Tract Map No. 29929 2. Lot "B" (portion of Bristol Road) of said Tract Map No. 29929 3. Lot "C" (Worthington Place) of said Tract Map No. 29929 4. Lot "0" (Davenport Court) of said Tract Map No. 29929 Tract Map 29929-1 1. Lot "A" (Newport Road) of said Tract Map No. 29929-1 2. Lot "B" (Lake Front Road) of said Tract Map No. 29929-1 3. Lot "C" (Booth Bay Road) of said Tract Map No. 29929-1 4. Lot "0" (portion of Landings Road) of said Tract Map No. 29929-1 5. Lot "E" (Stowe Road) of said Tract Map No. 29929-1 6. Lot "F" (portion of Bristol Road) of said Tract Map No. 29929-1 EXHIBIT "B" TO RESOLUTION NO. 2006-_ TRACT NO. 29929 VICINITY MAP "" ~~C': '" _...unnI SHE ~ :zoo<>-29587..0.R. !'Ell INS\". ..,. ) (REe'o 7-31-<lO EXHIBIT "B" TO RESOLUTION NO. 2006-_ TRACT NO. 29929-1 VICINITY MAP 4;, ~I?R~ ;;, -90"'0 , 1,.\51 LDf ... \ \ ,. BNltlER STRIP ?" 9\'d. ""~ .~ "" 7 . 9 \~\ "l.. \ \ \ I \ \ ' 1\ f9\ \ 2 I {~ \ ':\ \ \ ,/ \ \ 6 @ --1\ --d> N.I ARICIl PlACE :- - -'=)l .--{ : II " II >4 9:,...0\ ~9'1f3 ~O' SO'(/> iV~ ~'l.'" I \I>.ll. /" 1,.\51 \~ 1,.\51 \'3 ITEM NO. 14 Approvals City Attorney Director of Finance City Manager ~ IJIL !fr- CITY OF TEMECULA AGENDA REPORT TO: City Manager/City Council FROM: William G. Hughes, Director of Public Works/City Engineer DATE: November 14, 2006 SUBJECT: Authorize Temporary Street Closures for Santa's Electric Light Parade on December 1, 2006, and Delegate Authority to issue Special Events/Street Closures Permit to the Director of Public Works/City Engineer PREPARED BY: Ronald J. Parks, Deputy Director of Public Works Steve Charette, Associate Engineer RECOMMENDATION: That the City Council: 1. Adopt a resolution entitled: RESOLUTION NO. 06- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA AUTHORIZING TEMPORARY STREET CLOSURES FOR JEFFERSON AVENUE AND ABUTTING STREETS FROM RANCHO CALIFORNIA ROAD TO OVERLAND DRIVE AND ALSO THE LOW FLOW CROSSING AT VIA MONTEZUMA AT DIAZ ROAD FOR TEMECULA'S HOLIDAY LIGHT PARADE ON DECEMBER 1, 2006, AND AUTHORIZING THE DIRECTOR OF PUBLIC WORKS/CITY ENGINEER TO ISSUE A SPECIAL EVENTS PERMIT INCLUDING STREET CLOSURES. BACKGROUND: A temporary street closure on Jefferson Avenue between Rancho California Road and Overland Drive is necessary to protect participants and viewers at the Temecula's Holiday Light Parade for a period of a few hours beginning at approximately 6:00 PM on Friday, December 1,2006. The parade route will be on Jefferson Avenue between Del Rio Road and Overland Drive. However, the portion of Jefferson Avenue between Rancho California Road and Del Rio Road will also be closed to allow for controlled VIP parking. Other streets will also require temporary street closure to facilitate staging and de-staging. These streets include Del Rio Road, Calle Cortez, Las Haciendas Street, Commerce Center Drive, Via Montezuma between Jefferson Avenue and Diaz Road including the low flow crossing through Murrieta Creek, and Overland Drive west of Jefferson Avenue. The roads will re-open shortly after the parade is over with the signal timing re-established. This would minimize traffic effects. Under Vehicle Code Section 21101, "Regulation of Highways", local authorities, forthose highways under their jurisdiction, may adopt rules and regulations by ordinance or resolution for, among other instances, "temporary closing a portion of any street for celebrations, parades, local special events, and other purposes, when, in the opinion of local authorities having jurisdiction, the closing is necessary for the safety and protection of persons who are to use that portion of the street during the temporary closing". The City Council adopted Resolution No. 91-96 on September 10,1991, which provided standards and procedures for special events on public streets, highways, sidewalks, or public rights-of-way. This resolution set forth processes for staff reviewing applications, denying approval or approving subject to conditions including events requiring changes in normal traffic patterns, and an appeal process to the City Manager. However the resolution did not delegate authority to temporarily close streets for these special events. The subject resolution delegates the authority to approve temporary street closures for the Temecula Community Services Department sponsored "Temecula's Holiday Light Parade" to the Director of Public Works/City Engineer. All other special events requiring temporary street closures, construction-related closures, etc, shall remain subjectto the approval of the City Council subjectto rules and regulations established by the City Council. These rules and regulations shall also be adopted by resolution in accordance with California Vehicular Code Section 21101. FISCAL IMPACT: The costs of police services, and for provision, placement, and retrieval of necessary warning and advisory devices by the City Maintenance Department, are included in budgetary items. ATTACHMENTS: 1. 2. Resolution No. 06-_ Parade Route and Limits of Road Closure RESOLUTION NO. 06- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA AUTHORIZING TEMPORARY STREET CLOSURES FOR JEFFERSON AVENUE AND ABUTTING STREETS FROM RANCHO CALIFORNIA ROAD TO OVERLAND DRIVE AND ALSO THE LOW FLOW CROSSING AT VIA MONTEZUMA AT DIAZ ROAD FOR TEMECULA'S HOLIDAY LIGHT PARADE ON DECEMBER 1, 2006, AND AUTHORIZING THE DIRECTOR OF PUBLIC WORKS/CITY ENGINEER TO ISSUE A SPECIAL EVENTS PERMIT INCLUDING STREET CLOSURES. THE CITY COUNCIL OF THE CITY OF TEMECULA DOES HEREBY RESOLVE AS FOLLOWS: WHEREAS, The California State Vehicle Code provides for the promulgation of rules and regulations for the temporary closure of public streets by local authorities by Resolution; and WHEREAS, the City Council desires to establish rules and regulations for the temporary closure of public streets in the interest of promoting safety and protection; and WHEREAS, The City of Temecula sponsors the annual "Temecula's Holiday Light Parade", for which such temporary street closures promote the safety and protection of persons using or proposing to use that street or streets for the special event; and WHEREAS, the City Council desires to facilitate the issuance of permission to temporarily close public streets for this annual "Temecula's Holiday Light Parade" on Friday, December 1, 2006; and NOW, WHEREAS, the City Council desires to authorize the Director of Public Works/City Engineer to approve temporary street closures including Jefferson Avenue from Rancho California Road to Overland Drive, Del Rio Road, Calle Cortez, Las Haciendas Street, Commerce Center Drive, Via Montezuma between Jefferson Avenue and Diaz Road including the low flow crossing through Murrieta Creek, and Overland Drive west of Jefferson Avenue on Friday, December 1, 2006 beginning at 6:00 PM for the annual "Temecula's Holiday Light Parade", and to establish the general rule that all other proposed temporary street closures shall be reviewed and approved subject to conditions, or disapproved, by the City Council; and THEREFORE, BE IT RESOLVED, that the City Council of the City of Temecula, hereby authorizes the Director of Public Works/City Engineer to permit temporary street closures as stated above for the annual "Temecula's Holiday Light Parade" on Friday, December 1, 2006, and affirms the general rule that all other temporary public street closures shall be approved or denied approval by the City Council. PASSED, APPROVED, AND ADOPTED by the City Council of the City ofTemecula this 14th day of November, 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 regular meeting thereof held on the 14th day of November, 2006, by the following vote: AYES: NOES: ABSENT: ABSTAIN: BOARD MEMBERS: BOARD MEMBERS: BOARD MEMBERS: BOARD MEMBERS: Susan W. Jones, MMC City Clerk Temecu/a Electric Light Parade Light Towers " <<Rf'R\SE E.t.\1:~ ---- Road Closure Light Parade Route Staging Parade Route - _a-Staging 10 LOCATION 1 Check-In 2 Comer of Commerce Center & Via Montezuma 3 ComerofVIB Montezuma & Del Rio 04 Between #3 & #5 5 Comer orDeI Rio & Las Haclenc;las 6 L&M 7 RV Lot 8 Precision 9 Comer of Calle Cortez & Del Rio 10 Bianchi lot 11 Blrdsalls 14 Temecula Valley Pipe 12 Southwest Christian Church 13 Southwest Christian Church 15 Excel 17 McDonalds parking lot 16 North of McOonalds 18 Discount Tire 19 In front ofB/aoehl 20 Handicapped Parking 21 SIzzler 22 Primecare 23 Holiday Inn Express 24 OVerland Drive dirt lot 26 Bus lot 25 Comer of Overland & Commerce Center 27 Overflow Parking - Dlaz Rd 28 Overflow Parking ~ Rancho Cal & Dlaz Rd 29 Overflow Parking. Rancho Cal & Business Park 30 OverfloW Parkin - Business Park & Sin Ie Oak ITEM NO. 15 Approvals City Attorney Director of Finance City Manager ~ iJlL ~ CITY OF TEMECULA AGENDA REPORT TO: City Manager/City Council FROM: William G. Hughes, Director of Public Works/City Engineer DATE: November 14, 2006 SUBJECT: Cooperative Agreement with the County of Riverside to Mitigate Traffic I mpacts in Western Riverside County - Amendment NO.1 PREPARED BY: Beryl Yasinosky, Management Analyst RECOMMENDATION: That the City Council approve Amendment NO.1 to the Cooperative Agreement between the City of Temecula and the Countyof Riverside to Mitigate Traffic Impacts in Western Riverside County and authorize the Mayor to execute the documents. BACKGROUND: On November 5, 2003, the City filed legal action againstthe County of Riverside challenging the validity of the County's new General Plan and Environmental Impact Report for the unincorporated areas of Southwest Riverside County. The City contended that the County's General Plan failed to mitigate significant traffic impacts and provide the necessary roadways to serve the number of proposed dwelling units. On April 12, 2005, the City and County resolved their differences by entering into an agreement entitled: "Cooperative Agreement between the City of Temecula and the County of Riverside to Mitigate Traffic Impacts in Western Riverside County" ('Cooperative Agreement"). The Cooperative Agreement established the frame work for the County to condition all proposed residential subdivisions to be part of an appropriate funding mechanism (such as a Community Facilities District) to construct the necessary roadway improvements within the area identified as the "1-215 Policy Area." In order to clarify implementation of the Cooperative Agreement and enhance the timely delivery of the roadway improvements, the City and County are recommending several modifications to the Cooperative Agreement as follows: o Modify the original 1-215 Policy Area to include certain sub-areas. o Clarify the requirements for parcel maps and tentative maps. o Clarify the requirements for tentative maps approved prior to the Cooperative Agreement. o Provide alternative procedures for map extensions to secure funding for arterial improvements. o Extend the time-frame by one month for the County to complete the General Plan Amendment, set the Public Hearing, and adopt the General Plan. Upon the City Council's approval of the amended Cooperative Agreement, the documents will be returned to the County Board of Supervisors for review and final approval. FISCAL IMPACT: None. ATTACHMENTS: 1. 2. Amendment NO.1 to the Cooperative Agreement Cooperative Agreement (original dated 4/12/2005) AMENDMENT NO.1 TO THE COOPERATIVE AGREEMENT BETWEEN THE CITY OF TEMECULA AND THE COUNTY OF RIVERSIDE TO MITIGATE TRAFFIC IMPACTS IN WESTERN RIVERSIDE COUNTY This Amendment is made and entered into as of , 2006 by and between the City of Temecula, a municipal corporation ("City"), and the County of Riverside ("County"), a public subdivision of the State of California ("County"). ARTICLE 1 RECITALS This Amendment is made for the following purposes and with respect to the following facts, which the City and County agree to be true and correct: On April 12, 2005, the City and the County entered into an agreement entitled: "COOPERATNE AGREEMENT BETWEEN THE CITY OF TEMECULA AND THE COUNTY OF RNERSIDE TO MITIGATE TRAFFIC IMPACTS IN WESTERN RNERSIDE COUNTY" ("COOPERATNE AGREEMENT"). The COOPERATNE AGREEMENT calls, among other things, for the City and the County to implement certain measures to mitigate the impact of new housing development on City and County arterial roads and highways within the boundaries of the 1-215 Policy Area. ("The Measures"). The Measures call for the County to condition all County Land Use Applications authorizing the construction of residential dwelling units to be part of an appropriately funded financing mechanism (such as a Community Fa9ilities District - CFD) that will build the major arterial. road components identified in the COOPERATNE AGREEMENT. The County has been imposing conditions of approval that implement the requirements of the COOPERATNE AGREEMENT. Now that the City and the County have been implementing the terms of the COOPERATNE AGREEMENT for over a year, they have identified modifications to the COOPERATNE AGREEMENT that will facilitate implementation and enhance the timely delivery of transportation infrastructure. In light of the above, the City and the County hereby wish to amend the COOPERATIVE AGREEMENT as follows: ARTICLE 2 COOPERATIVE AGREEMENT AMENDMENTS Section 1. Exhibit A to the COOPERATNE AGREEMENT, referenced in Section 1.8 thereof, is amended as shown in "Revised Exhibit A", which is attached hereto and incorporated herein by this reference. Revised Exhibit A modifies the boundaries of the original 1-215 Policy Area to include the following sub-areas: . Newport RoadlI-215 Interchange CFD - Sub-area A . Scott RoadlI-215 Interchange CFD - Sub-area B . Clinton Keith Road Extension CFD - Sub-area C . Washington Street Construction - Sub-area D . Clinton Keith Road Extension Fee Payment - Sub-area E . Newport Road Extension CFD - Sub-area F . Newport Road Realignment CFD - Sub-area G The County shall use these sub-ar,eas as a guideline in determining how County Land Use Applications should be conditioned. Section 2. as follows: Section 1.9.9 of the COOPERATIVE AGREEMENT is amended to read "1.9.9 'County Land Use Applications' is defined in Section 2.3.3 and shall mean any applications on which the County Planning Commission has not taken final action as of the effective date of this Agreement, the approval of which would authorize, or conditionally authorize, the construction of dwelling units within the 1-215 Policy Area, including, but not limited to, applications for General Plan amendments, specific plans, specific plan amendments, zone changes, development agreements, subdivision maps and planned development permits. County Land Use Applications shall not include any applications for parcel maps that would result in the creation of four or fewer parcels, provided that the parcels created could not be further subdivided without a General Plan amendment. County Land Use Applications shall also not include any applications for minor changes to approved tentative tract maps that would add only one residential unit to the maps." Section 3. as follows: Section 2.3.3 of the COOPERATNE AGREEMENT is amended to read "2.3.3 As used in this Agreement, County Land Use Applications shall mean any applications on which the County Planning Commission has not taken final action as of the effective date of this Agreement, the approval of which would authorize, or conditionally authorize, the construction of dwelling units within the 1-215 Policy Area, including, but not limited to, applications for General Plan amendments, specific plans, specific plan amendments, zone changes, development agreements, subdivision maps and planned development permits. County Land Use Applications shall not include any applications for parcel maps that would result in the creation of four or fewer parcels, provided that the parcels created could not be further subdivided without a General Plan amendment. County Land Use Applications shall also not include any applications for minor changes to approved tentative tract maps that would add only one residential unit to the maps." 2 Section 4. A new Section 1.9.19 is added to the COOPERATIVE AGREEMENT to read as follows: "1.9.19 'Subdivision map extension application' shall mean an application to extend the time available to record a final map." ,. Section 5. A new Section 1.9.20 is added to the COOPERATIVE AGREEMENT to read as follows: "1.9.20 'TUMF' shall mean the Transportation Uniform Mitigation Fee adopted by the Western Riverside Council of Governments and its member jurisdictions (including the City and the County), as subsequently amended." Section 6. Existing Section 1.9.19 is renumbered Section 1.9.21. Section 7. A new Section 2.2.1 is added to the COOPERATNE AGREEMENT to read as follows: "2.2.1 To facilitate the formation of financing mechanisms, the County has implemented Section 2.2 of the COOPERATNE AGREEMENT such that subdivision maps are required to comply therewith prior to recordation of a final map. Notwithstanding the County's implementation procedure, the City and County recognize that certain subdivision maps were tentatively approved prior to adoption of the COOPERATNE AGREEMENT, but have not recorded for a variety of reasons. Recognizing that substantial time and money have been invested in these maps and that their recordation may be further delayed by the requirements of the COOPERATNE AGREEMENT as implemented by the County, the County has developed the alternative procedure set forth in Section 2.2.2 that will allow these maps to record while still securing the funding necessary for the needed transportation improvements." Section 8. A new Section 2.2.2 is added to the COOPERATIVE AGREEMENT to read as follows: "2.2.2 In considering a subdivision map extension application for any map tentatively approved prior to the effective date of the COOPERATNE AGREEMENT (April 12, 2005), the County may, at the request of the subdivider, conditionally approve the application to require the subdivider to pay (a) the applicable TUMF at the earliest date allowed by the TUMF Ordinance and (b) an early recordation fee, which shall be 50% of the TUMF in effect at the time of recordation. The County shall earmark the early recordation fee for use only on the major arterial road that most benefits the subdivision, as determined by the County. This alternative procedure is purely voluntary and any subdivider choosing not to request it shall be subject to all other terms of the COOPERATIVE AGREEMENT as implemented by the County." Section 9. follows: Section 5.2 of the COOPERATNE AGREEMENT is amended to read as "5.2 The City shall have the right to refile the Litigation, subject to the provisions of Sections 5.2.1 through 5.2.6, inclusive, in the event that: (1) the County 3 does not, within four (4) months of the effective date of Amendment No. 1 to the COOPERATNE AGREEMENT, complete the staff work required for the County General Plan Amendment, including necessary environmental documentation, and set a public hearing date before the Planning Commission; (2) the County does not, for any reason, adopt the County General Plan Amendment within eight (8) months of the effective date of Amendment No. 1 to the COOPERATNE AGREEMENT; or (3) the County does not adopt the jointly developed Freeway Action Plan described in Section 4.4 within one (1) year after completion of the Freeway Strategic Study described in Section 4.2." ARTICLE 3 MISCELLANEOUS The parties hereto represent and warrant to each other that they have full authority to execute this Agreement. This Agreement may be executed in counterparts, each of which shall be deemed to be an original and all of which together shall constitute one and the same instrument. The effective date of this Agreement is the date the parties sign the Agreement. If the parties sign the Agreement on more than one date, then the last date the Agreement is signed by a party shall be the effective date. IN WITNESS WHEREOF, the undersigned have executed this Agreement in the State of California. CITY OF TEMECULA Mayor Attest: City Clerk 4 Approved as to Form City Attorney COUNTY OF RIVERSIDE Bob Buster, Board of Supervisors Attest: Nancy Romero, Clerk of the Board of Supervisors By: Deputy Clerk Approved as to Form Joe Rank, County Counsel By: Katherine A. Lind Principal Deputy County Counsel 5 ,.... ....., '.."",,,u,,,,o.OO(l".' .." ",000 (,.~ :::c:"'::=--_.. .. ~ ::r.....:;:=~~.:.....:..-.,;:o~.::r-....., ",:::~~~:?,0':?.=.~~.... :f!t ,. ..y -, Legend 1-215 Pol" Name ICY Sub-areas 1I1111111111f _ :::ort Road/l-215lnterchan e _ Road/l-215lnt 9 - Sub-area A __ Cllnt erchange S ~ on Keith Road E - ub-area B ~W . xtensio ashlngton Str n - Sub-area C ....... C ' est Canst . _ Imton Keith R ructlon - Sub ~ oad Exte _ -area D ~ Newport R nSlon Fee P c:=::::: N oad E'te,,;oo - S b ayme", - S"b-acea E ...... ewport Road Re r u -area F __ r~21 a Ignment - S ~ 5 Policy Area ub-area G - Road Center1ines c::J Cities ~ Policy Area R ' oadway or Intercha oge '" ;-_/ '-......,.L- COOPERATIVE AGREEMENT BETWEEN THE CITY OF TEMECULA AND THE COUNTY OF RIVERSIDE TO MITIGATE TRAFFIC IMPACTS IN WESTERN RIVERSIDE COUNTY This Agreement is made and entered into as of Aprill~, 2005 by and between the City of Temecula, a municipal corporation ("City"), and the County of Riverside, a public subdivision of the State of California ("County"). In consideration of the mutual promises set forth herein, the City and County agree as follows: ARTICLE 1 RECITALS This Agreement is made for the following purposes and with respect to the following facts, which the City and County agree to be true and correct: 1.1 Since 1999, the County has been engaged in a project known as the Riverside County Integrated Project (the "RCIP"), which initially consisted of proposals for the Community and Environmental Transportation Acceptability Process (the "CETAP"), the Western Riverside County Multi-Species Habitat Conservation Plan ("MSHCP"), and an updated general plan to replace the County general plan adopted in 1984. The CETAP has not yet been adopted. The MSHCP has been adopted by the County and the member agencies. The State and Federal agencies have also approved the MSHCP and issued the necessary permits for the MSHCP. 1.2 On October 7,2003, the County adopted its Resolution No. 2003-487, approving a new General Plan (the "General Plan") to replace the prior general plan approved in 1984 and adopted Resolution No. 2003-488 adopting and certifying a Final Environmental Iinpact Report for the General Plan ("FEIR"). The General Plan designates land uses for the unincorporated areas of the County. The General Plan also describes the infrastructure necessary to serve the designated land uses. 1.3 The City is located in southwestern Riverside County. Two major highways traverse the City, State Route 79 North (Winchester Road) and State Route 79 South, and connect to Interstate 15. The City has improved these roads from two lanes to six lanes in order to accommodate the growth within the City. These roads also serve the unincorporated areas of the County surrounding the City. 1.4 During the public hearing process, the City commented extensively on the proposed General Plan. The City contends, among other things, that the General Plan fails to adequately provide for construction of the traffic improvements required to serve the dwelling units proposed by the General Plan and, therefore, fails to mitigate the traffic impacts created by the General Plan; that the General Plan deficiencies are of particular concern to the City because traffic generated in the Southwest area ofthe County will severely impact the City unless certain 779861.6 April 1, 2005 1 '-.,...-' >,.......-', traffic improvements are built concurrently with the proposed dwelling units; and that no adequate mechanism exists in the General Plan to ensure that traffic mitigation measures identified in the General Plan and the FEIR are in place before the dwelling units creating the need for the mitigation measures are constructed. The County disputes the City's contentions. 1.5 On November 5, 2003, the City filed a Petition for Writ of Mandate in Riverside Superior Court challenging the legality and validity of the General Plan and the FEIR. The action is entitled "City of Temecula v. County of Riverside; Board of Supervisors of the County of Riverside," Riverside County Superior Court Case No. RIC 402766 ("Litigation"). The County disputes the City's contention that the General Plan and FEIR are invalid. 1.6 Despite their differences in the Litigation, the City and County desire to cooperatively work together in an effort to improve the highway infrastructure in Western Riverside County for the benefit of all current and future residents of the County. The City and County acknowledge that providing adequate traffic infrastructure for Western Riverside County involves complex engineering, environmental and financial challenges requiring the full cooperation of all federal, state and local governmental agencies, but will provide substantial public benefits for the City, County and the people living and working in the City and the County. 1.7 This Agreement sets forth the framework for a major cooperative effort by the City and the County to provide the traffic infrastructure required for new housing development . in Western Riverside County before the creation of actual traffic impacts. 1.8 This Agreement specifically addresses impacts of the General Plan on Major Arterial Roads in Southwest Riverside County in the specific area to be known as the "1-215 Policy Area." This Agreement also specifically addresses impacts of the General Plan on freeways in the "Western Riverside County Area". For the purposes of this Agreement, the "1- 215 Policy Area" shall be the area described in and shown on Exhibit A and the "Western Riverside County Area" shall be the area described in and shown on Exhibit D. 1.9 The terms described below shall have the following meanings unless otherwise noted in the Agreement: 1.9.1 "Appropriately formed and fully funded financin!( mechanism" is defined in Section 2.3.4 and Section 3.3.4 and shall mean a community facilities district, aSsessment district, or similar infrastructure financing mechanism, which has been formed and which is fully funded to provide for the immediate construction of the Major Arterial Roads required to mitigate project-related traffic impacts. "Appropriately formed financing mechanism" is defined in Section 2.3.4 and Section 3.3.4 and shall mean a community facilities district, assessment district, or similar infrastructure fmancing mechanism, which has been formed to provide for the construction of the Major Arterial Roads required to mitigate project-related traffic impacts. 1.9.2 "Best efforts" County is defined in Section 2.3.2 and Section 2.3.7. As used in Section 2.3.2, "best efforts" shall mean that the County shall initiate proceedings to amend the General Plan as described in Section 2.1 and shall diligently process the proposed 779861.6 April I, 2005 2 "~ "-"" General Plan Amendment to completion in accordance with all applicable laws, subject to the County's legislative discretion as more particularly described in Section 2.3.5. As used in Section 2.3.7, "best efforts" shall mean that the County shall; at the time an appropriately formed financing mechanism is in place and sufficient funds are ayailable, diligently undertake, without uunecessary delay, all the actions required to enable construction of the Major Arterial Roads, including, but not limited to, preparing and processing the requited environmental documentation, design documentation and plans and specifications. As used in Section 2.3.7, "best efforts" shall further mean that the County shall, at the time an appropriately formed and fully funded financing mechanism is in place, diligently initiate and complete construction of the "Major Arterial Roads. 1.9.3 "Best efforts" City is defined in Section 3.3.2, and shall mean that the City shall initiate proceedings to amend the General Plan as described in Section 3.1 and shall diligently process the proposed General Plan Amendment to completion in accordance with all applicable laws, subject to the City's legislatiye discretion as more particularly described in Section 3.3.6. 1.9.4 "City" shall mean the City ofTemecula. 1.9.5 "City General Plan Amendment" shall mean the proposed amendment to the Temecula General Plan described in Section 3.1. 1.9.6 "City Land Use Applications" is defined in Section 3.3.3 and shall mean any applications on which the City Planning Commission has not taken final action as of the effective date of this Agreement, the approval of which, would authorize or conditionally authorize the construction of dwelling units within the City, including, but not limited to, applications for General Plan amendments, specific plans, specific plan amendments, zone changes, deyelopment agreements, subdivision maps and planned development permits. 1.9.7 "County" shall mean the County of Riverside. . 1.9.8 "County General Plan Amendment" shall mean the proposed amendment to the Riverside County General Plan described in Section 2.1. 1.9.9 "County Land Use Applications" is defined in Section 2.3.3 and shall mean any applications on which the County Planning Commission has not taken final action as of the effective date of this Agreement, the approval of which, would authorize or conditionally authorize the construction of dwelling units within the 1-215 Policy Area, including, but not limited to, applications for General Plan amendments, specific plans, specific plan amendments, zone changes, development agreements, subdiyision maps and planned deyelopment permits. Section 6.11. 1.9.1 0 "Effective date of this Agreement" shall mean the date described in 779861.6 April!,2005 3 ."-~"- '"-...-" 1.9.11 "General Plan" shall mean the Riverside County General Plan approved by Resolution No. 2003-487 of the Board of Supervisors of Riverside County on October 7, 2003. 1.9.12 "Freeways" shall mean the 1-15 Freeway and the 1"215 Freeway within the Western Riverside County Area. 1.9.13 "Freeway Action Plan" shall mean the action plan described in Section 4.4 which shall be negotiated by the City and County following receipt of the Freeway Strategic Study. 1.9.14 "Freeway Strategic Study" shall mean the study described in Section 4.1 to set specific goals for the development of the freeway capacity necessary to meet the traffic generated by new housing development in the Western Riverside County Area and to establish the framework for the joint efforts of the City, County, and other federal, state and local agencies to implement the goals and establish the necessary freeway capacity. 1.9.15 "1-215 Policy Area" is defined in Section 1.8 and shall mean the area in Southwest Riverside County described in and shown on Exhibit A. 1.9.16 "Litigation" shall mean the Petition for Writ of Mandate filed by the City on November 5,2003 in Riverside Superior Court, entitled "City ofTemecula v. County of Riverside; Board of Supervisors of the County of Riverside," Riverside County Superior Court Case No. RIC 402766, challenging the legality and validity of the General Plan and the FEIR. 1.9.17 "Maior Arterial Roads" is defined in Section 2.3.1 and Section 3.3.1 and shall mean those roadway projects identified in Exhibit B. Exhibit C. 1.9.18 "Priority Phasing Program" shall mean the program described m 1.9.19 "Western Riverside County Area" shall mean the area described in and shown on Exhibit D. ARTICLE 2 MEASURES TO MITIGATE THE IMPACT OF NEW HOUSING DEVELOPMENT ON COUNTY ARTERIAL ROADS AND HIGHWAYS 2.1 The County shall use its best efforts to amend the General Plan so that it contains: (1) a policy indicating that the Major Arterial Roads within the 1-215 Policy Area shall be constructed and completed concurrently with the construction of the dwelling units creating the demand for the Major Arterial Roads; and (2) a requirement that all land use applications approved by the County within the 1-215 Policy Area ("County Land Use Applications") shall contain a condition, in addition to all other appropriate conditions, that building permits shall not 779861.6 April l, 2005 4 "--./ , ~ ~ be issued until (a) the subject property is part of an appropriately formed and fully funded financing mechanism to build the components of the Major Arterial Roads which will mitigate the traffic impacts of the project or (b) the subject property is part of an appropriately formed financing mechanism to build the components of the Major Arterial Roads which will mitigate the traffic impacts of the project and the property owner pays its full proportionate share of the required improvements to the County in trust for the construction of the Major Arterial Roads which will mitigate the traffic impacts of the project or (c) the Comity otherwise funds or constructs the required improyements using money from other sources. The General Plan Amendments described in this section shall be known as the "County General Plan Amendment." 2.2 All County Land Use Applications approved by the County after the effective . date of this Agreement shall contain a condition of approval requiring that building permits shall not be issued until (a) the subject property is part of an appropriately formed and fully funded financing mechanism to build the components of the Major Arterial Roads which will mitigate the traffic impacts of the project or (b) the subject property is part of an appropriately formed financing mechanism to build the components of the Major Arterial Roads which will mitigate the traffic impacts of the project and the property owner pays his/her/its full proportionate share of the required improvements to the County in trust for the construction of the Major Arterial Roads which will mitigate the traffic impacts of the project or (c) the County otherwise funds or constructs the required improvements using money from other sources. 2.3 The County, to the extent allowed by law, shall facilitate and promote the proceedings necessary to complete processing of the County General Plan Amendment as set forth. in Section 2.1 and the County shall diligently process the County General Plan ' Amendment, including necessary enyironmental actions without unnecessary delay. 2.3.1 As used in this Agreement, "Major Arterial Roads" shall mean those roadway projects identified in Exhibit B. 2.3.2 As used in Sections 2.1, "best efforts" shall mean that the County shall initiate proceedings to amend the County General Plan as described in Section 2.1 and shall diligently process the proposed Amendment to completion in accordance with all applicable laws, subject to the County's legislative discretion as more particularly described in Section 2.3.5. 2.3.3 As used in this Agreement, County Land Use Applications shall mean any applications on which the County Planning Commission has not taken final action as of the effective date of this Agreement, the approval of which, would authorize or conditionally authorize the construction of dwelling units within the 1-215 Policy Area, including, but not limited to, applications for General Plan amendments, specific plans, specific plan amendments, zone changes, development agreements, subdivision maps and planned development permits. 2.3.4 As used in this Agreement, "appropriately formed and fully funded fmancing mechanism" shall mean a community facilities district, assessment district, or similar infrastructure financing mechanism, which has been formed and which is fully funded to provide 779861.6 April I, 2005 5 "-.....-". .\..,.._/ for the immediate construction of the Major Arterial Roads required to mitigate project-related traffic impacts.. As used in this Agreement, "appropriately formed financing mechanism" shall . mean a community facilities district, assessment district, or similar infrastructure financing mechanism, which has been formed to provide for the construction of the Major Arterial Roads required to mitigate project-related traffic impacts.. 2.3.5 The Parties understand and acknowledge that, in the context of processing the County General Plan Amendment and the County Land Use Applications, the County cannot guarantee the ultimate outcome of any public hearings before the County Planning Commission or the County Board of Supervisors or other public bodies of the County, nor prevent any opposition thereto by members of the public or other agencies affected by or interested in the County General Plan Amendment and the County Land Use Applications. The Parties further understand and acknowledge that land use regulations involve the exercise of the County's police power and, at the time of executing this Agreement, it is settled California law that government may not contract away its right to exercise its police power in the future. Avco Community Developers mc. v. South Coast Regional Com., 17 Ca1.3d 785, 800 (1976); City of Glendale Y. Superior Court, 18 Ca1.App.4th 1768 (1993). The parties further understand and acknowledge that the approval of the County General Plan Amendment and the County Land Use Applications may be subject to procedural or substantive obligations under the California Environmental Quality Act, the State Planning and Zoning Law, or other laws potentially applicable to such approvals. Nothing in this Agreement is intended to constrain the County's consideration of the County General Plan Amendment and the County Land Use Applications in . light of the information obtained or deyeloped pursuant to these laws and the County retains the discretion to approve, conditionally approve, or disapprove the County General Plan Amendment and the County Land Use Applications in light of such information. Subject to the foregoing, the County, to the extent allowed by law, shall facilitate and promote the proceedings necessary to complete processing of the County General Plan Amendment as set forth in this section, and the County shall diligently process the County General Plan Amendment, including all necessary environmental actions without unnecessary delay. 2.3.6 The County shall send to the City a public hearing notice for all County Land Use Applications that require a hearing before the County Planning Commission or the County Board of Supervisors. 2.3.7 The County shall use its best efforts to complete the Major Arterial Roads pursuant to the Priority Phasing Program, attached hereto as Exhibit C. AJJ used in this section, "best efforts" shall mean that County shall, at the time an appropriately formed financing mechanism is in place and sufficient funds are available, diligently undertake, without unnecessary delay, all the actions required to enable construction of the Major Arterial Roads, including, but not limited to, preparing and processing the required environmental documentation, design documentation and plans and specifications. As used in this, section "best efforts" shall further mean that the County shall, at the time an appropriately formed and fully funded financing mechanism is in place, diligently initiate and complete construction of the Major Arterial Roads. 779861.6 April I, 2005 6 ',--./ "-...-./ ARTICLE 3 MEASURES TO MITIGATE THE IMPACT OF NEW HOUSING DEVELOPMENT ON CITY ARTERIAL ROADS AND HIGHWAYS 3.1 The City shall use its best efforts to amend the City's General Plan so that it contains: (1) a policy indicating that the Major Arterial Roads within the City shall be constructed and completed concurrently with the construction of the dwelling units creating the demand for the Major Arterial Roads; and (2) a requirement that land use applications approved by the City within the City ("City Land Use Applications") shall contain a condition, in addition to all other appropriate conditions, that building permits shall not be issued until (a) the subject property is part of an appropriately formed and fully funded financing mechanism to bnild the components ofthe Major Arterial Roads which will mitigate the traffic impacts ofthe project or (b) the subject property is part of an appropriately formed financing mechanism to build the components of the Major Arterial Roads which will mitigate the traffic impacts of the project and the property owner pays its full proportionate share ofthe required improvements to the City in trust for the construction of the Major Arterial Roads which will mitigate the traffic impacts of the project or (c) the City otherwise funds or constructs the required improvements using money from other sources. The City General Plan Amendments described in this section shall be known as the "City General Plan Amendment." 3.2 Ail City Land Use Applications approved by the City after the effective date of this Agreement shall contain a condition of approval which requires that building permits shall not be issued until (a) the subject property is part of an appropriately formed and fully funded financing mechanism to build the components of the Major Arterial Roads which will mitigate the traffic impacts of the project or (b) the subject property is part of an appropriately formed financing mechanism to build the components of the Major Arterial Roads which will mitigate the traffic impacts of the project and the property owner pays his/her/its full proportionate share of the required improYe'ments to the City in trust for the construction of the Major Arterial Roads which will mitigate the traffic impacts of the project or (c) the City otherwise funds or constructs the required improyements using money from other sources. 3.3 The City, to the extent allowed by law, shall facilitate and promote the proceedings necessary to complete processing of the City General Plan Amendment as set forth in Section 3.1, and the City shall diligently process the City General Plan Amendment, including necessary environmental actions without unnecessary delay. 3.3.1 As used in this Agreement, "Major Arterial Roads" shall mean those roadway projects identified in Exhibit B. 3.3.2 As used in Sections 3.1, "best efforts" shall mean that the City shall initiate proceedings to amend the City General Plan as described in Section 3.1 and shall diligently process the proposed Amendment to completion in accordance with all applicable laws, subject to the City's legislative discretion as more particularly described in Section 3.3.5. 779861.6 April 1,2005 , 7 -,.-" '.-' 3.3.3 As used in this Agreement, City Land Use Applications shall mean any applications on which the City Planning Commission has not taken final action as' of the effectiye date of this Agreement, the approval of which, would authorize or conditionally authorize the construction of dwelling units within the City, including, but not limited to, applications for General Plan amendments, specific plans, specific plan amendments, zone changes, development agreements, subdivision maps and planned development permits. 3.3.4 As used in this Agreement, "appropriately formed and fully funded financing mechanism" shall mean a community facilities district, assessment district, or similar infrastructure financing mechanism, which has been formed and which is fully funded to provide for the immediate construction of the Major Arterial Roads required to mitigate project-related traffic impacts. As used in this Agreement, "appropriately formed financing mechanism" shall mean a community facilities district, assessment district, or similar infrastructure financing mechanism, which has been formed to provide for the construction of the Major Arterial Roads required to mitigate project-related traffic impacts.. 3.3.5 The Parties understand and acknowledge that, in the context of processing the City General Plan Amendment and the City Land Use Applications, the City cannot guarantee the ultimate outcome of any public hearings before the City Planning Commission or the City Councilor other public bodies of the City, nor prevent any opposition thereto by members of the public or other public agencies affected by or interested in the City General Plan Amendment and the City Land Use Applications. The Parties further understand and acknowledge that land use regulations involve the exercise of the City's police power and, at the time of executing this Agreement, it is settled CalifoI:nia law that government may not contract away its right to exercise its police power in the future. Avco Community Developers Inc. v. South Coast Regional Com., 17 Cal.3d 785, 800 (1976); City of Glendale v. Superior Court, 18 Cal.App.4th 1768 (1993). The parties further understand and acknowledge that the approval of the City General Plan Amendment and the City Land Use Applications may be subject to pI:ocedural or substantive obligations under the CalifoI:nia Envirorunental Quality Act, the State Planning and Zoning Law, or other laws potentially applicable to such approvals. Nothing in this Agreement is intended to constrain the City's consideration of the City General Plan Amendment and the City Land Use Applications in light of the information obtained or developed pursuant to these laws and the City retains the discretion to approve, conditionally approve, or disapprove the City General Plan Amendment and the City Land Use Applications in light of such information. Subject to the foregoing, the City, to the extent allowed by law, shall facilitate and promote the proceedings necessary to complete processing of the City General Plan Amendment as set forth in this section, and the City shall diligently process the City General Plan Amendment, including all necessary envirorunental actions without unnecessary delay. 3.3.6 The City shall send to the County a public hearing notice for all City Land Use Applications that require a hearing before the City Planning Commission or the City Council. 779861.6 April I, 2005 8 '--"~ ''-,./ ARTICLE 4 MEASURES TO MITIGATE THE IMPACT OF NEW HOUSING DEVELOPMENT ON WESTERN RIVERSIDE COUNTY AREA FREEWAYS " 4.1 The City and the County shall jointly request that the Riverside County Transportation Commission ("RCTC") prepare a Freeway Strategic Study for the Western Riverside County Area which shall examine the freeway capacity, set specific goals for the development of the freeway capacity necessary to accommodate the trips generated by new housing development and establish the framework for the joint efforts of the City, County and other federal, state and local agencies to implement the goals and establish the necessary freeway capacity. The Joint Request for the Freeway Strategic Study shall ask that the Freeway Strategic Study be completed within four (4) months of the date of submittal of the Joint Request. The Joint Request shall be submitted to RCTC within thirty (30) days of the effective date of this Agreement. The parties authorize the Mayor of the City and the Chairperson of the Board of Supervisors to execute the Joint Request on behalf of their respective agencies. 4.2 The Freeway Strategic Study shall specifically study and analyze the following issues: (1) the current capacities of the freeways within Western Riverside County Area ("Freeways"); (2) the projected traffic growth projections for the Freeways as of January 1 in the years 2010, 2015, 2020, 2025 and 2030, based upon assumptions concerning the build-out of new housing as described in Exhibit E; (3) the percentage of traffic growth for the Freeways in those years attributable to new housing deyelopment in the Western Riverside County Area; (4) the currently proposed improvements for the Freeways; (5) the current funding options for the currently proposed improvements for the Freeways; and (6) the potential funding sources for improyements necessary to meet the projected traffic growth for the Freeways at build-out of the Western Riverside County Area. 4.3 The City and the County shall share equally in the costs incurred by RCTC in preparing the Freeway Strategic Study. 4.3.1 The County shall inyoice the City for the City's share of the RCTC costs and the City shall pay such invoice within thirty (30) days of the date the invoice is deemed given under Section 6.7 ofthis Agreement. 4.3.2 During the course of RCTC's work on the Freeway Strategic Study, the City, the County and RCTC staff shall meet monthly to discuss the progress of the work and to review any additional work which may need to be undertaken by the consultant. 4.4 Following completion of the Freeway Strategic Study, the City and County shall meet and negotiate in good faith to deyelop a Freeway Action Plan for funding the freeway improvements necessary to meet the expected demand as determined by the Freeway Strategic Study. As part of the development of the Freeway Action Plan, the City and the County shall also form a Freeway Task Force composed of private and public stakeholders to build consensus 779861.6 April!,2005 9 '--.,.J "-'. and secure participation of other Western Riverside County Area Cities in the Freeway Action Plan. The Freeway Task Force shall specifically include, but shall not be limited to, a representative from each of the following: the City and the County, RCTC, the Western Riverside Council of Governments ("WRCOG"), the deyelopment community and the environmental community. . 4.5 Ii1 the event a third party files litigation concerning the Freeway Strategic Study or the Freeway Action Plan, or any portion thereof, the City and the County shall share equally in the costs of defending the litigation, provided the City's share shall not exceed the maximum sum of one hundred fifty thousand dollars ($150,000.00). 4.6 Ad hoc subcommittees of the City Council and the County Board of Supervisors, along with their staffs, shall meet monthly to review the progress of the proposed General Plan Amendment (Section 2.1), the conditions of approval for the County and City Land Use Applications (Section 2.2 and Section 3.2) and the Freeway Strategic Study (Section 4.1). ARTICLE 5 SETTLEMENT OF LITIGATION 5.1 The City shall dismiss without prejudice the Litigation within twenty- five (25) days of the effective date of this Agreement, subject to the City's right to refile the Litigation as provided in this Agreement. 5.2 The City shall have the right to refile the Litigation, subject to the provisions of . Sections 5.2.1 through 5.2.6, inclusive, in the event that: (1) the Colinty does not, within three (3) months of the effective date of this Agreement, complete the staff work required for the County General Plan Amendment, including necessary environmental documentation, and set a public hearing date before the Planning Commission; (2) the County does not, for any reason, adopt the County General Plan Amendment within nine (9) months of the effective date of this Agreement; or (3) the County does not adopt the jointly developed Freeway Action Plan described in Section 4.4 within one (1) year after completion of the Freeway Strategic Study described in Section 4.2. 5.2.1 The City's right to refile the Litigation shall expire one (1) year and thirty (30) days after completion of . the Freeway Strategic Study. As used in this Agreement, "completion of the Freeway Strategic Study" shall mean the date RCTC transmits the final version of the Freeway Strategic Study to the City Council and the County Board of Supervisors. 5.2.2 Ii1 the event the City exercises its right to refile the Litigation, the refiled lawsuit shall not challenge the General Plan except with respect to the analysis of traffic impacts, including mitigation measures associated with such impacts, within the Third Supervisorial District of the County, as that District was configured on the effective date of this Agreement. 5.2.3 The prayer clause in the refiled Litigation shall request relief only with respect to the General Plan as it applies and relates to traffic impacts within the Third 779861.6 April I, 2005 10 -.--..,.: ,,--,- Supervisorial District. The prayer clause shall specifically state that the City does not request that the Court set aside the General Plan in its entirety. All pleadings, briefs, arguments and proposed orders filed by the City addressing the scope of relief, including proceedings pursuant to Public Resources Code Section 21168.9, shall be consistent with this provision. 5.2.4 The County specifically agrees that the City shall have the right to refile the Litigation pursuant to the terms of this Agreement notwithstanding the applicable statute of limitations governing legal challenges to the General Plan and agrees to toll the statute of limitations for a legal challenge to the General Plan so as to enable the City to exercise its rights under this Agreement. Pursuant to this Agreement, the County does not toll or waive the defense of the statute oflimitations as to any persons, agencies or entities other than the City. 5.2.5 The County further agrees, on behalf of itself and any successors or assigns, that in the event the Litigation is refiled the County will not raise any applicable statute of limitations as a defense to the refiled Litigation and will allow the City to proceed with prosecution of the refiled Litigation subject to the restrictions set forth in this Agreement. 5.2.6 Subject to the restrictions set forth in Section 5.2.2 and Section 5.2.3, nothing herein is intended to, nor shall it be construed to, prohibit the City from challenging a project approved by the County on the grounds that the project fails to comply with the California Environment Quality Act, or other laws. 5.3 If the County adopts the jointly developed Freeway Action Plan, then, and only then, shall Sections 5.3.1 through 5.3.6 become operatiye. As used in this Agreement, "adopts the jointly developed Freeway Action Plan" shall mean the County adopts a resolution approving the Freeway Action Plan. The County is 'not required to adopt or otherwise implement the specific measures described in the Freeway Action Plan in order to obtain the benefits conferred by Sections 5.3.1 through 5.3.6. 5.3.1 Within twenty (20) days after the County adopts the jointly developed Freeway Action Plan, the City shall file with the Court a request for dismissal, with prejudice, of the Litigation. 5.3.2 Each party shall bear its own attorney fees and expenses in the Litigation. 5.3.3 In consideration of the promises of the parties specified in this Agreement and the satisfaction of the conditions for settlement, the parties shall fully and forever release, acquit, and discharge each other, their officers, elected officials, attorneys, sureties, agents, servants, representatives, employees, subsidiaries, affiliates, partners, predecessors, successors- in-interest, assigns, and all persons acting by, through, under or in concert with them of and from any and all past, present, or future claims, demands, obligations, actions, causes of action, including those for damages, injunctiye or declaratory relief, or for relief by way of writ of mandate, for costs, losses of service, expenses, liability, suits, and compensation of any nature whatsoever, whether based on tort, contract, or other theory of recovery, known or U11known, that they now have, have had, asserted or could have asserted in the Litigation or otherwise relate to the alleged actions or inactions of the County with respect to the Litigation. Nothing contained 779861.6 April I, 2005 11 '-.....~/ .~/ herein shall relieve any party hereto of its continuing obligations imposed by law or by the provisions of this Agreement, including, without limitation, the Judgment in the case of Endangered Habitats League v. County of Riverside (Domenigoni-Barton Properiies), Riverside County Superior Court Case No. RIC 369801, consolidated with City ofTemecula v. County of Riverside (Domenigoni-Barton Properties) Riverside County Superior Court Case No. RIC 369989. 5.3.4 The parties hereto acknowledge that they are familiar with Section 1542 of the California Civil Code which provides: "A general release does not extend to claims which a creditor does not know or suspect to exist in his favor at the time of executing the release, which if known by him must have materially affected his settlement with the debtor." The parties being aware of the aforesaid code section, each hereby expressly waives any rights they might have hereunder. This release shall not operate to release any claims the parties may later have for the enforcement of the obligations created by this Agreement. 5.3.5 The City warrants and represents to. the County that it has not assigned, conveyed or otherwise transferred any of its rights to the claims described in or arising out of the Litigation to any other person, entity, firm or corporation not a party to this Agreement, in any marrner; including by way of subrogation or operation oflaw or otherwise. Ii1 the event that any claim, demand or suit is made or instituted against the County because City made an actual assignment or transfer, City agrees to indemnifY and hold the County harmless against such claim, and to pay and satisfy any such claim, including necessary expenses of investigation, reasonable attorneys' fees and costs. 5.3.6 The County warrants and represents to the City that the execution and delivery of this Agreement by County will not (i) violate any judgment, order, injunction, decree, regulation or ruling of any court or governmental entity or (ii) conflict with, result in a breach of, or constitute a de~au1t under any material agreement or instrument to which the County is a party or by which the County may be bound. ARTICLE 6 MISCELLANEOUS 6.1 This Agreement contains the complete expression of the whole agreement between the parties hereto, and there are no promises, representations, agreements, warranties or inducements, either expressed verbally or implied, except as are fully set forth herein. This Agreement carrnot be enlarged, modified, or changed in any respect except by written agreement between the parties. 6.2 Each and all of the covenants, conditions and restrictions in this Agreement shall 779861.6 April 1, 2005 12 '-_..' ,---," inure to the benefit of and shall be binding upon the parties, their successors-in-interest, agents, representatives, assignees, transferees. 6.3 No person or entity shall be deemed to be a third party beneficiary hereof, and nothing in this Agreement (either expressed or implied) is intended nor shall it be construed to confer upon any person or entity, other than the City and the County, any rights, remedies, obligations or liabilities under or by reason of this Agreement. 6.4 In entering into this Agreement, the parties represent that they have relied upon the legal advice oftheir attorneys, who are the attorneys of their own choice, and that these terms are fully undertaken and yoluntariIy accepted by them. The parties further represent that they have no question with regard to the legal import of any term, word, phrase, or portion of this Agreement, or the Agreement in its entirety, and accept the terms of this Agreement as written. 6.5 The parties hereto represent and warrant to each other that they have full authority to execute this Agreement. 6.6 The headings employed to identifY the provisions contained herein are solely for the convenience of the parties to this Agreement. If any ambiguity appears in either the headings or the provisions attendant thereto, such ambiguity shall not be construed against any party to this Agreement on the grounds that such party drafted this Agreement. 6.7 Except as otherwise expressly provided by law, any and all notices or other communications required or permitted by this Agreement or by law to be served on or given to either party to this Agreement by the other party shall be in writing and shall be deemed duly served and given when personally delivered to the party to whom it is directed or to any officer of that party, or, in lieu of personal service, on the third business day following deposit in the United States mail, certified, postage prepaid, addressed to: County of Riverside County Administratiye Center 4080 Lemon Street Riyerside, California 92501 Atte~tion: Transportation Land Management Agency Director City of Temecula Post Offlce Box 9033 43200 Business Park Drive Temecula, California 92589-9033 Attention: City Manager 6.8 If any litigation is commenced between the parties to this Agreement concerning the rights and duties of either in relation to this Agreement, the prevailing party shall be entitled to, in addition to any other relief that may be granted in the litigation, reasonable attorneys fees as determined by the court presiding over the dispute. 779861.6 April!,2005 13 \-..../ 6.9 The following Exhibits to tbis Agreement are incorporated herein as though set forth in full: Exhibit A Exbibit B Exhibit C Exhibit D Exhibit E 1-215 Policy Area Major Arterial Roads Priority Phasing Program Western Riverside County Area Assumptions of Build-Out ofI-215 Policy Area 6.10 Tbis Agreement may be executed in counterparts, each of which shall be deemed to be an original and all ofwbich together shall constitute one and the same instrument. 6.11 The effective date of this Agreement is the date the parties sign the Agreement. If the parties sign the Agreement on more than one date, then the last date the Agreement is signed by a party shall be the effective date. 779861.6 April 1, 2005 14 ""....' '--------. IN WITNESS WHEREOF, the undersigned have executed this Agreement in the State of California. 779861.6 April I, 2005 CITY OF TEMECULA ~<4-~ Mike Naggar Mayor Pro Tempore " " . ..,~ . Attest: .-..... .~ - ::;--.. Approved as to Form ~ . Peter M. Thorson City Attorney 15 '.~./ COUNTY OF RIVERSIDE J/J -1~ I" v. ion Ashley Chairman, Board of Supervisors It~ Attest: Nancy Romero, Clerk to Board of Supervisors By: ~~P,\~UM"- Deputy Clerk " Approved as to Form William C. Katzenstein, County Counsel By:4 . , LA ) atherine Lind Deputy County Counsel 779861.6 April!,2005 !6 -l ----1- ' 11~ /' -' - ,;{,ff!, r L-Ll ~f - "-.,..,/. ( ~,. ffi!B - .- ',,--~ J ..... [..{, \ ~<"" MdiJU /JfCi, I ~_'<"'- fJTL11llJ I. 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F, . 4~-r:- , f-.>, <"'/" 1 :":..--r-t'/Ib (h !? Y";, i ,tt.!-:'''"'''tt;'' - . \ >->---'.. 'I'! \..I,';,'-J-, ;::l " /.' :/jJ ,r\ \ -)."\.. r' ~ .L.~" - i"'~-'" \ .-\.... \ 1 I . '1 ..,.-( ..,. ,... .>;; , . I -j L :,' ("""\1. 'T N-P:f, 0-{ 4 .... r ctl CU cd:~ ....>t .- (J .0= .- 0 ~a. Wit') ~ ~ - ,/ ~ ,,-' -..? " :ir , z~ m " ~ ~ ctl ,., m" ,g ~1['6 0>'00 0. ~",-e l.l) .r: 'O,,! ~ OJ m to :t :f ~~ a<g I.c- _.r-h' j <"'tJ . . L ~. .' n IUmfl:m ~: ~~H:~ .~~ ~ ~i UH m I ~h'~~~~ I ~ ~'a:j.,rIN ~ i dU~ lPil ~ f Ihmdl ~ 1'~~iHi~111 ~nimih ! i I ~ o Ii ~ i"' -- ~ .\...J EXHIBIT "B" MAJOR ARTERIAL ROADS Newport Road, including Interchange at 1-215 and roadway improvements from Goetz Road to Winchester Road (SR 79S). Scott Road, including Interchange at 1-215 and roadway improvef!lents from 1-15 to Winchester Road (SR 79N). Clinton Keith Road, including Interchange at 1-15 and roadway improvements from 1-15 to Winchester Road (SR 79N). . 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"1::m '''Y:fJJ~~~:r.J{I1J "'a:P-i J.'t,....,,:>e;;.. -:,.;",~!i!;"!Ei,1. ,. A~~4' "':"df!..F~:rr """'''Il~ ,...~ ' , ~ f(": ..' ,:'bf',\' .~: .'" ,"'., ..... ., ~I<{' . r ,..] I: .' , ..... ':1:'0.'11- . !-:,,!" ~:';-i;!j~..~ i~7'1', j,J<.""j ','j',,, ...'. ~..'" i .' };.J5,.l" -. . "~"<:iYl#'; .' . j'ji\di'r....,.... . r];j'il . , ;~~l\,i~~~ '~"'r:.~ .~,i!~!. .~ . .~! ~', '\, ~.~. I i..' :..... ..~'~; ~~~~~2ti. ,.' ." ~ . t~ f ;, iJ ,';; , . . ~ i.. .. .. .. .. '". ",." ':';1 . ..-r "...---! "-.-I Exhibit "E" Assumptions of Bnild-out ofI-21S Policy Area Dwelling Units Study Area Outside CFDs Total (County Study CFDs Area) Areas in Acres 78,314 (72% of Area) 31,003 (28% of 109,317 Area) Build-Out 72,066 (64% of Units) 39,934 (36% of 112,000 Units) Built Units 19,929 (71% of Built 8,185 (29% of Built 28,114 (Includes un-Built Units) Units) Recorded and Large Lots for CFDs) Units Remaining 52,137 (62% of 31,749 (38% of 83,886 to be Built Remaining Units) . Remaining Units) COllllty unincorporated area ITEM NO. 16 Approvals City Attorney Director of Finance City Manager ~ IJ~ F CITY OF TEMECULA AGENDA REPORT TO: City Manager/City Council FROM: William G. Hughes, Director of Public Works/City Engineer DATE: November 14, 2006 SUBJECT: First Amendment to Professional Consultant Services with Leighton Consulting, Inc. for the Temecula Public Library - Project No. PWOO-07 PREPARED BY: Amer Attar, Principal Engineer Bill McAteer, Construction Manager RECOMMENDATION: That the City Council: 1. Approve the First Amendment to the agreement with Leighton Consulting, Inc. in an amount not to exceed $30,262.21 to provide additional Geotechnical and Special Inspection Services to complete the Temecula Public Library - Project No. PWOO-07. 2. Authorize the City Managerto approve Extra Work Authorizations notto exceed the contingency amount of $3,062.22, which is equal to 10% contingency of the amendment amount. BACKGROUND: On April 26, 2005 the City Council approved a consulting services agreement in the amount of $193,393.00 with Leighton Consulting, Inc. to provide Geotechnical Material Testing and Special Inspection Services for the Temecula Public Library. Due to the extended duration of the grading operation, trench backfill operations, construction and additional special inspections for the roofing and moisture testing additional geotechnical inspection services are required. FISCAL IMPACT: The Temecula Public Library is a Capital Improvement projectfunded through Capital Project Reserves, DIF-LibraryMitigation, DIF Library Facilities, and Proposition 14- State Library Grant Funds. The total cost of this First Amendment to the Professional Consultant Services Agreement is $33,288.43. This includes a contingency amount of $3,026.22, bringing the total contract amount, including this first amendment amount to $223,655.21. Adequate funds are available in the City's Capital Improvement Program Budget for FY2006-2007. ATTACHMENTS: Attachments FIRST AMENDMENT TO AGREEMENT BETWEEN CITY OF TEMECULA AND LEIGHTON CONSULTING, INC. GEOTECHNICAL MATERIAL TESTING AND SPECIAL INSPECTION SERVICES TEMECULA PUBLIC LIBRARY PROJECT NO. PWOO-07 THIS FIRST AMENDMENT is made and entered into as of November 14, 2006 by and between the City of Temecula, a municipal corporation ("City") and Leighton Consulting, Inc. ("Consultant"). In consideration of the mutual covenants and conditions set forth herein, the parties agree as follows: 1. This Amendrnent is made with respect to the following facts and purposes: A. On April 26, 2005 the City and Consultant entered into that certain agreement entitled "City of Temecula Agreement for professional geotechnical material testing and speCial inspection services ("Agreement") in the amount of One Hundred Ninety Three Thousand Three Hundred Ninety Three Dollars and No Cents ($193,393.00). B. The parties now desire to increase the payment for services in the amount of Thirty Thousand Two Hundred Sixty Two Dollars and Twenty One Cents ($30,262.21) and amend the Agreement as set forth in this Amendment. 2. Section 5 a Payment of the Agreement is hereby amended to read as follows: a. The City agrees to pay Consultant 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 First amendment amount shall not exceed Thirty Thousand Two Hundred Sixty Two Dollars and Twenty One Cents ($30,262.21) for additional geotechnical material testing and special inspection services for a total agreement amount, of Two Hundred Twenty Three Thousand Six Hundred Fifty Five Dollars and Twenty One Cents ($223,655.21). The City Manager may approve additional work up to ten percent (10%) of the total of the Agreement and Amendment amount. 3. Except for the changes specifically set forth herein, all other terms and conditions of the Agreement shall remain in full force and effect. R:ICIPIPROJECTSIPWOO.07IAgreemenlsILeighlon Amendment 1 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed the day and year first above written. CITY OF TEMECULA Ron Roberts, Mayor ATTEST: Susan W. Jones, MMC, City Clerk Approved As to Form: Peter M. Thorson, City Attorney CONSULTANT Leighton Consulting, Inc. Robert F. Rhia 41715 Enterprise Circle North, #103 Temecula, CA 92590 (951) 296-0530 Tom Benson, President Terry Brennan, CCO TITLE: (Two Signatures Required For Corporations) ATTACHMENT A GEOTECHNICAL MATERIAL TESTING AND SPECIAL INSPECTION SERVICES TEMECULA PUBLIC LIBRARY, PROJECT NO. PWOO-07 Attached hereto and incorporated herein is the additional scope of work and associated cost as provided by the Consultant. " RECEIVED OCT 1 8 2006 Leighton Consulting, Inc. A LEIGHTON GROUP COMPANY July 14,2006 (Revised October 16, 2006) CITY OFTEMECULA PUBLIC WORKS DEPARTMENT Project No. 600877-001 To: City of Temecula Public Works Department 43200 Business Park Drive Temecula, California 92590 Attention: Mr. Bill McAteer Subject: Revised Supplemental Work Authorization for Additional Geotechnical and Testing and mspection Services, Proposed Temecula Public Library (PWOO- 07CSD), Temecula, California Reference: Leighton Consulting, me., 2004, Proposal to Provide Geotechnical and Materials Testing and Special mspection Services for the Proposed Temecula Public Library Project (pWOO-07CSD), City of Temecula, California, Proposal No. P611-00015, dated December 23, 2004. m accordance with our discussion we have prepared this revised supplemental work authorization to provide additional geotechnical and testing and inspection services for the Temecula Public Library (pWOO-07CSD). As reported in our monthly invoicing, additional geotechnical field services have incurred beyond our original estimate for site grading, trench backfill and site pavement. m addition, we completed shop fabrication; roofing inspection and site moisture vapor transmission testing that were not included in our original contract. This Supplemental Work Authorization budget adjustment is requested to bring billing Task Items in line with incurred costs (overage or credit to budget) and to authorize the additional work performed or to be performed. Our budget adjustment request for both the credit for unused budget and completed unbilIed additional geotechnical services is summarized in the attached table. Based on our discussion, we understand that approximately 16 hours of field technician time for erosion repair and one additional site floor moisture testing (two total will be performed). No other additional site work is anticipated at this time. Based on these items, we request a budget amendment in the amount of Thirty Thousand, Two Hundred Sixty Two Dollars and Twenty One Cents ($30,262.21). 41715 Enterprise Circle N., Suite 103 . Temecula, CA 92590-5661 951.296.0530. Fax 951.296.0534. www.leightonconsulting.com 600877-001 July 14, 2006 (Revised October16, 2006) Please issue your authorization and change to the City's Purchase Order Number 008269. The additional work was performed under the terms and conditions of the signed agreement between the City of Temecula and Leighton Consulting, Inc. effective April 26, 2005. If you haye any questions regarding this supplemental work authorization request, please do not hesitate to the contact this office. We appreciate this opportunity to be of service. Respectfully submitted, ;J;1TG,mc Robert F. Riha,CEG Principal Geologist RFR/ecw Distribution: (2) Addressee (email copy) Attachment: Revised Budget Summary - 2- 4 Leighton =il:i ~~ 0- > s 0 0 0 0 0 0 0 0 0 0 0 ;:: 0 '" '" '" '" '" 0 0 '" 0 0 0 .,; - ..; <ri ..; <ri ... .,; ..; '" .,; .,; .,; m '" '" '" M '" ;I. ;:: 0 0 0 ~~ I- '" '" <0 '" '" 0 0 "'- " '" ,.: ... .,; '" N ~ .,; -M &- ~ "'''' & & '" ;! ~ -.. .. ;:" . . "'., ~ .. .. .. .. .. .. .. .. .. .. .. .. .. .. 0 0 g 0 0 0 0 '" 0 0 00 '" '" '" 0 0 '" '" 0 0 00 ti~ ..; .,; ~ <ri j, .,; ,,; ,,; '" .,; 0"':: '" 0 '" .., ~ '" 0 "'.. ..~ <0 '" M '" '" '" '" "'N "0 :: '" '" ... 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'0 C C CO CO ::! ::> i:i: ,; c c ~ l; e. ~ 1i '6 1i 1i :g ~ 0 c l! c C I- i:i: 0 0 ,g I!....tii ;e '" ;e c; c; c; ~ar:: ... & ." '6 0 0 0 ~~~:g ... C ." ." co co co .. i:i: .. .. '" .. .. ~~..~ ;.: ;.: N .;; ;0 ;0 ;0 0 0 0 - 0 co co E 6(,) g - - 0 0 co 0 co ~ 0 co co .!.!!:tr:: co co co co l<l ~.: 0 ... ... ... ~~U N N N N N N - " !l '" '" '" '" '" '" ",,, '" 0 '" '" ~a! " " " .. " - - .. - .c .. " .. {! {! {! {! {! {! {!", {! j {! {! {! ITEM NO. 17 Approvals City Attorney Director of Finance City Manager V iJlL J/ CITY OF TEMECULA AGENDA REPORT TO: City Manager/City Council FROM: William G. Hughes, Public Works Director/City Engineer DATE: November 14, 2006 SUBJECT: Consultant Services Agreement for Engineering Design Services for DePortola Road Pavement Rehabilitation Project from Jedediah Smith Road to Margarita Road; Project No. PW06-10 PREPARED BY: Greg Butler, Principal Engineer Mayra De La Torre, Senior Engineer RECOMMENDATION: That the City Council: 1. Approve an agreement with GFB-Friedrich & Associates, Inc. in an amount not to exceed $146,100.00 to design De Portola Road Pavement Rehabilitation Project between Jedediah Smith Road and Margarita Road, Project No. PW06-10, and authorize the Mayor to execute the agreement. 2. Authorize the City Manager to approve extra work not to exceed the contingency amount of $14,610, which is equal to 10% of the agreement amount. BACKGROUND: The De Portola Road Pavement Rehabilitation Project Road is identified in the City's Capital Improvement Program Budget for Fiscal Years 2006-2010. This project consists of rehabilitating De Portola Road between Jedediah Smith Road and Margarita Road. The rehabilitation method may include grind and overlay, complete removal and replacement of roadway sections, full depth reclamation and/or other creative rehabilitation means, which will be identified after the existing roadway conditions are analyzed and soil exploratory work is performed. Request for Proposal No. 148 to provide professional engineering design services was sent to the following five firms: Boyle Engineering Corporation Harris & Associates RBF Consulting GFB-Friedrich & Associates, Inc. La-Belle Marvin Professional Pavement Engineers in Ontario in Palm Desert in Temecula in Riverside in Santa Ana Staff determined that GFB-Friedrich & Associates, Inc. was the highest ranked consultant based on their proposal. They have successfully performed similar projects in the past. They have also performed work in Temecula (i.e., Margarita Road Widening Project). Staff has negotiated a scope of work and an equitable fee with GFB-Friedrich for the professional services. FISCAL IMPACT: The De Portola Road Pavement Rehabilitation Project, PW06-10, is a Capital Improvement project funded with Measure A and Federal funding via the Surface Transportation Program (STP). The total contract amount for the design agreement is $160,710.00, which includes the contract amount of $146,100.00 plus the 10% contingency amount of $14,610.00. Adequate funds are available in Account No. 210-165-656-5802. ATTACHMENTS: 1. Project Location 2. Project Description 3. Consultant Services Agreement ROR E-\..51.l 510",,5 V) \1\\..1..1'0 '" ~ ~ \IE-ROE-OR -< ..;l ~ 0 !2 L -6 0 '<t- ~ 0 ~ 0- A ~ , Z 0 .... ~ 5 ~ ~ !2 ~ ~ ~ E::: ~ 0 U 0:: N C w "4 ;; 5' t; ~ z <:;;;;;( E::: ~ "t C .. .- ~ e ~ ~ f::: ~ u ~ ~ ti ~ c ~ ..... ~ '" < ~ oi ~ 'J:: '" bll ta ::E ." !ii -5 's CIl ~ 'B '" ." '" ..... 5 lUE :;: '" .., E .n ." !!: .~ ~ ~'o '" ~ ~ '" ~~ o '" P-< ta '" '" og< "'0 <oj 0 .~ o::::t ~ \0" .g.,., .eN ~ t) i=l:=l ~ o .", '" ..;:: :s ~ "'~." ""'3 () ro O.~ 0 .... 0 .... U~~ 0; +:l E::: .... u " ...... <0 ... ~ 0; i:i ~~ .... s:>. U'I: " U <0 '" ... " ~Q ^ ." '" .... ;3 cr '" .... '" " !ii ta '" u OJ .... .s 5 '" -5 '" ." '" U '" " "" ." ....:::: o .~ ~~ " " ." 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P-< " o .€ o ~bb !ii .S ?:] 8~ 'f1] '" 0 mE-< AGREEMENT FOR PROFESSIONAL ENGINEERING DESIGN SERVICES DE PORTOLA ROAD PAVEMENT REHABILITATION PROJECT PROJECT NO. PW06-10 THIS AGREEMENT is made and effective as of November 14, 2006, between the City of Temecula, a municipal corporation ("City") and GFB-Friedrich & Associates, Inc. ("Consultant"). In consideration of the mutual covenants and conditions setforth herein, the parties agree as follows: 1. TERM. This Agreement shall commence on November 14, 2006, and shall remain and continue in effect until tasks described herein are completed, but in no event later than November 14, 2007, unless sooner terminated pursuant to the provisions of this Agreement. 2. SERVICES. Consultant shall perform the services and 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 time 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 hereunder in meeting its obligations under this Agreement. 4. PREVAILING WAGES. Pursuant to the provisions of Section 1773 of the Labor Code of the State of California, the City Council has obtained the general prevailing rate of per diem wages and the general rate for holiday and overtime work in this locality for each craft, classification, or type of workman needed to execute this Contractor from the Director of the Department of Industrial Relations. Copies may be obtained from the California Department of Industrial Relations' Intemet web site at http://\MIIIW.dir.ca.gov. Consultant shall provide a copy of prevailing wage rates to any staff or sub-contractor hired, and shall pay the adopted prevailing wage rates as a minimum. Consultant shall comply with the provisions of Sections 1773.8, 1775, 1776, 1777.5,1777.6, and 1813 of the Labor Code. Pursuant to the provisions of 1775 of the Labor Code, Consultant shall forfeit to the City, as a penalty, the sum of $25.00 for each calendar day, or portion thereof, for each laborer, worker, or mechanic employed, paid less than the stipulated prevailing rates for any work done under this contract, by him or by any subcontractor under him, in violation of the provisions of the Contract. 5. 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, Payment Rates and Schedule, attached hereto and incorporated herein by this reference a's though set forth in full, based upon actual time spent on the above tasks. Any terms in Exhibit B other than the scope of work to be performed, payment rates and schedule of payment are null and void. This amount shall not exceed One Hundred Forty Six Thousand One Hundred Dollars and No Cents ($146,000.00) for the total term of the Agreement unless additional payment is approved as provided in this Agreement. b. Consultant shall not be compensated for any services rendered in connection with its performance of this Agreement which are in addition to those set forth herein, unless such additional services are authorized in advance and in writing by the City Manager. Consultant shall R:\CIP\ProjectsIPW06-10\GFB Design Agmt be compensated for any additional services in the amounts and in the manner as agreed to by City Manager and Consultant at the time Citis written authorization is given to Consultant for the performance of said services. The City Manager may approve additional work up to ten percent (10%) of the amount of the Agreement or twenty-five thousand dollars ($25,000.00). Any additional work in excess of this amount shall be approved by the City Council. c. Consultant will submit invoices monthly for actual services performed. Invoices shall be submitted between the first and fifteenth business day of each month, for services provided in the previous month. Payment shall be made within thirty (30) days of receipt of each invoice as to all non-disputed fees. If the City disputes any of consultant's fees it shall give written notice to Consultant within 30 days of receipt of a invoice of any disputed fees set forth on the invoice. 6. 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 least ten (10) days prior written notice. Upon receipt 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 VliH submit an invoice to the City pursuant to Section 4. 7. 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 hereunder arises out of causes beyond the, Consultant's control, and 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 conditions 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 of this 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. 8. OWNERSHIP OF DOCUMENTS. a. Consultant shall maintain complete and accurate records with respect to sales, costs, expenses, receipts and other such information required by City that relate to the performance of services under this Agreement. Consultant shall maintain adequate records of services provided in sufficient detail to permit an evaluation of services. All such records shall be 2 R:ICIPIProjecIsIPW06-10\GFB Design Agmt maintained in accordance with generally accepted accounting principles and shall be clearly identi- fied and 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 there from 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 containing data generated for the work, 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 containing data generated for the work, Consultant shall make available to the City, upon reasonable written request by the City, the necessary computer software and hardware for purposes of accessing, compiling, transferring and 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. 9. INDEMNIFICATION. The Consultant agrees to defend, indemnify, protect and hold harmless the City, its officers, officials, employees and volunteers from and against any and all claims, demands, losses, defense costs or expenses, including attomey fees and expert witness fees, or liability of any kind or nature which the City, its officers, agents and employees may sustain or incur or which may be imposed upon them for injury to or'death of persons, or damage to property arising out of Consultant's negligent or wrongful acts or omissions arising out of or in any way related to the performance or non-performance of this Agreement, excepting only liability arising out of the negligence of the City. 10. INSURANCE REQUIREMENTS. Consultant shall procure and maintain for the duration ofthe 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 hereunder by the Consultant, its agents, representatives, or employees. a. Minimum Scope of Insurance. Coverage shall be at least as broad. as: (1) Insurance Services Office Commercial General Liability form No. CG 0001 11 B50rBB. (2) Insurance Services Office Business Auto Coverage form CA 00 01 06 92 covering Automobile Liability, code 1 (any auto). If the Consultant owns no automobiles, a non-owned auto endorsement to the General Liability policy described above is acceptable. (3) Worker's Compensation insurance as required by the State of California and Employer's Liability Insurance. If the Consultant has no employees while performing under this Agreement, worker's compensation insurance is not required, but Consultant shall execute a declaration that it has no emplo}€es. (4) Professional Liability Insurance shall be written on a policy form providing professional liability for the Consultant's profession. 3 R:ICIPIProjecIsIPW06-10IGFB Design Agmt b. Minimum Limits of Insurance. Consultant shall maintain limits no less than: (1) General Liability: One million dollars ($1 ,000,000) per occurrence for bodily injury, personal injury and property damage. If Commercial General Liability Insurance or other form 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: One million dollars ($1,000,000) per accident for bodily injury and property damage. (3) Worker's Compensation as required by the State of California; Employer's Liability: One million dollars ($1 ,000,000) per accident for bodily injury or disease. (4) Professional Liability coverage: Two million ($2,000,000) per claim and in aggregate. c. Deductibles and Self-Insured 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 deductibles or self-insured retentions as respects the City, its officers, officials, employees and volunteers; orthe Consultant shall procure a bond guaranteeing payment of losses and related investigations, claim administration and defense expenses. d. Other Insurance Provisions. The general liability and automobile liability policies are to contain, or be endorsed to contain, the following provisions: (1) The City, its officers, officials, employees and volunteers are to be covered as insured's 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 orvolunteers shall be excess of the Consultant's insurance and 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. 4 R:ICIPIProjectsIPW06-10IGFB Design Agmt (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, return receipt requested, has been given to the City. e. Acceptabilitv of Insurers. 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. Self insurance shall not be considered to comply with these insurance requirements. f. Verification of Coveraae. Consultant shall furnish 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 forms 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 affecting the coverage required by these specifications. 11. INDEPENDENT CONTRACTOR. a. Consultant is and shall at all times remain as to the City a wholly independent contractor. The personnel performing the services under this Agreement on behalf of Consultant shall at all times be under Consultant's exclusive direction and control. Neither City nor any of its officers, employees, agents, or volunteers shall have control over the conduct 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 City, or bind City in any manner. b. No employee benefits shall be available to Consultant in connection with the performance of this Agreement. Except for the fees paid to Consultant as provided in the Agreement, City shall not pay salaries, wages, or other compensation to Consultant for performing services hereunder for City. City shall not be liable for compensation or indemnification to Consultant for injury or sickness arising out of performing services hereunder. 12. LEGAL RESPONSIBILITIES. The Consultant shall keep itself informed of all local, State and Federal ordinances, laws and regulations which in any manner affect those employed by it or in any way affect the performance of its service pursuant to this Agreement. The Consultant shall at all times observe and comply with all such ordinances, 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. 13. RELEASE OF INFORMATION. a. All information gained by Consultant in performance of this Agreement shall be considered confidential and shall not be released by Consultant without City's prior written authorization. Consultant, its officers, employees, agents or subcontractors, shall not without written authorization from the City Manager or unless requested by the City Attorney, voluntarily provide declarations, letters of support, testimony at depositions, response to interrogatories or other information concerning the work performed under 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 order or subpoena. 5 R:\CIP\ProjectsIPW06-10\GFB Design Agmt b. Consultant shall promptly notify City should Consultant, its officers, employees, agents or subcontractors be served with any summons, complaint, subpoena, notice of deposition, request for documents, interrogatories, request for admissions or other discovery request, court order or subpoena from any party regarding this Agreement and the work performed there under or with respect to any project or property located within the City. City retains the right, but has no obligation, to represent Consultant and/or be present at any deposition, hearing or similar proceeding. Consultant agrees to cooperate fully with City and to provide City 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, direct, or rewrite said response. 14. 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, return 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. Notice shall be effective upon delivery to the addresses specified below or on the third business day following deposit with the document delivery service or United States Mail as provided above. To City: City of Temecula Mailing Address: P.O. Box 9033 Temecula, California 92589-9033 43200 Business Park Drive Temecula, California 92590 Attention: City Manager To Consultant: GFB-Friedrich & Associates, Inc. 6529 Riverside Avenue Suite #230 Riverside, California 92506 Attention: John Friedrich 15. ASSIGNMENT. The Consultant shall not assign the performance of this Agreement, nor any part thereof, nor any rnonies due hereunder, without prior written consent of the City. Upon termination of this Agreement, Consultant's sole compensation shall be payment for actual services performed up to, and including, the date of termination or as may be otherwise agreed to in writing between the City Council and the Consultant. 16. 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. 17. GOVERNING LAW. The City and Consultant understand and agree that the laws of the State of California shall govern the rights, obligations, duties and liabilities of the parties to this Agreement and also govern the interpretation of this 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 such litigation is filed by one party against the other to enforce its rights under this Agreement, the prevailing party, as determined by the Court's judgment, shall be entitled to reasonable attomey fees and litigation expenses for the relief granted. 6 R:ICIPIProjeclsIPW06-10IGFB Oesign Agmt 18. PROHIBITED INTEREST. No officer, or employee of the City ofTemecula shall have any financial interest, direct or indirect, in this Agreement, the proceeds thereof, the Contractor, or Contractor's sub-contractors for this project, during his/her tenure or for one year thereafter. The Contractor hereby warrants and represents to the City that no officer or employee of the City of T emecula has any interest, whether contractual, non-contractual, financial or otherwise, in this transaction, or in the business of the Contractor or Contractor's sub-contractors on this project. Contractor further agrees to notify the City in the event any such interest is discovered whether or not such interest is prohibited by law or this Agreement. 19. ENTIRE AGREEMENT. This Agreement contains the entire understanding between the parties relating to the obligations of the parties described 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 independent investigation of any and all facts such party deems material. 20. AUTHORITY TO EXECUTE THIS 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. 7 R:ICIPIProjecIsIPW06-10IGFB Design Agmt IN WITNESS WHEREOF, the parties hereto have caused this Agreementto be executed the day and year first above written. CITY OF TEMECULA Ron Roberts, Mayor Attest: Susan W. Jones, MMC, City Clerk Approved As to Form: Peter M. Thorson, City Attorney CONSULTANT GFB-Friedrich & Associates, Inc. 6529 Riverside Ave., Suite #230 Riverside, CA 92506 (951) 781-0811 (951) 781-8435 fax John A. Friedrich, P.E., President (Two Signatures of Corporate Officers Required For Corporations) 8 R:ICIPIProjeclsIPW06" 1 OIGFB Design Agmt EXHIBIT A TASKS TO BE PERFORMED De Portola Road Pavement Rehabilitation Between Jedediah Smith Road and Margarita Road Project No. PW06.10 Professional Engineering Design SeNices 9 R:\CIPIProjectsIPW06-10\GFB Design Agmt GFB-FRIEDRICH & ASSOC., INC. CONSULTING CIVIL ENGINEERS September 19, 2006 Revised: October 25, 2006 City Clerk City of Temecula 43200 Business Park Drive Temecula, CA 92590 Attn: Ms. Mayra De La Torre, P.E., Associate Engineer Subject: Revised Professional Engineering Services Proposal for the De Portola Road Pavement Rehabilitation Project from Margarita Road to Jedediah Smith Road (Ref Request/or ProposalNo. 148, Project No PW06-10) Dear Ms. De La Torre: GFB-Friedrich & Assoc., Inc. is pleased to submit the following revised proposal (original proposal dated September 19,2006) to provide professional engineering services for the design of the subject street rehabilitation project. In preparing this proposal, we have assembled a team with extensive experience in surveying, street and payement rehabilitation design, traffic engineering, hydrology studies, and storm runoff design. Our goal is to manage this project internally in such a way that a quality project is deliyered on-time, within budget, and with a minimum expenditure of City staff management time. GFB-Friedrich is especially well-suited for this project because: · All of the pavement analysis and rehabilitation design, driveway reconstruction design, hydrology, and SWPPP preparation will be performed in our office in Riyerside, approximately 45 minutes drive time from the project site. · Our team includes Urban Crossroads for traffic engineering with whom we have successfully worked in the past. They are familiar with Temecula and haye committed their resources to us in the pursuit of a successful project. . Our team also includes C.H.J., Inc. for pavement coring and analysis. C.H.J. has done virtually all of our geotechnical and pavement analysis work for the past several years, including similar work for the Margarita Road Widening Project for the City of Temecula. . All of the services to be provided, either in-house or by sub-consultant, will be under the direction of a single Project Manager. . We have visited the project site and talked with City staff to gain a greater understanding of the project and the City's expectations in order to prepare a more meaningful and viable proposal. 6529 RIVERSIDE AVENUE' SUITE 230 . RIVERSIDE, CALIFORNIA 92506 (9511 781-0811 . FAX: (951) 781-8435 E-MAIL: gfb-jaf@pacbeU.net Ms. Mayra De La Torre, P.E. Revised: October 25, 2006 Page 2 . We carry all required business insurance including $1,000,000 worth of professional liability insurance per occurrence/$2,000,000 per annual aggregate. Upon award of the project, GFB-Friedrich will be pleased to upgrade our professional liability policy to $2,000,000 per occurrence/annual aggregate. · We have reviewed the City's Standard Professional Services Agreement and, if selected, will execute the agreement. This proposal will be valid for a period of (90) days after the date affixed above. GFB-Friedrich appreciates the opportunity to submit a proposal for this project. Our proposed work plan has been formulated to meet the stated requirements of the City and the Request for Proposal. We haye the stafftirne available to begin work immediately and we look forward to working for the City of Temecula. If this proposal meets with your approval, we will be pleased to negotiate an agreement to execute the work, or to attend an interview to further present our qualifications. We want to do this project for you. If you have any questions regarding this proposal, please call us. Sincerely, ?i!i~ President attachment: JAF SCOPE OF WORK A. PRELIMINARY DESIGN SERVICES I. Attend project "kick-off" meeting at the Temecula City Hall which will be attended by key. members of GFB-Friedrich's consultant team and staff from the City. At this meeting, the expectations of the City relative to this project will be discussed. 2. Obtain from the City of Temecula all available as-built plans for existing street improvements, adjacent businesses, utility plans and drainage facilities, along with maps, right-of-way mapping, benchmarks, survey book notes, applicable hydrology information and tile City's boilerplate specifications. Request a set of plans and specifications for a similar previous project. Also obtain Assessor Parcel Maps of properties fronting the project from the Riverside County Assessor's Office. 3. Contact Underground Service Alert (USA) to obtain current utility purveyor information. A $25.00 per mile per segment fee is required for this service. Prepare and send initial utility notices, including vicinity map and request for all ayailable utility maps, drawings, atlases, sketches, etc., to all public utilities and public agencies that have existing or proposed facilities within the project area, including the following: · Verizon, · Southern California Gas Company · T.e.!. Cablevision, · Rancho California Water District, . Eastern Municipal Water District, . Southern California Edison Company, and . Other Utilities/Agencies Found by USA t.ook-up. Each notification will be followed up with a personal contact, as necessary. Please note that the electric and telephone utilities usually have look-up charges of their own in addition to USA. 4. Provide field surveying and aerial mapping of the project as follows: · Proyide centerline survey control and set aerial targets, · TMR Associates will provide aerial mapping services under contract to Dixon Surveying, . Shoot that culture that is not shown on the aerial mapping, either because it is under yegetation cover or because it is otherwise not visible in the aerial photos, · Shoot road cross-sections to assist in rehabiolitating the pavement to proper cross slopes and to maintain the exiwsting drainage flow lines at the edges of the road, and · Locate horizontally to O. H: foot all existing facilities for which information was unavailable during the collection of research data. 5. Provide initial site review to verify existing improvements, utility locations and potential impacts to the project. Areas of special consideration will be noted for further study. 6. Prepare design base sheets in AutoCAD 2005 compatible format utilizing City ofTemecula title blocks. The base sheets will include, in plan view, all known information including centerline data and monuments, public rights-of-way, adjacent property lines, existing improvements, existing utility locations, proposed curb and curb drainage openings, and sidewalk improvements. When ready, the base sheets will be provided to the traffic and pavement analysis . sub-consultants for them to work simultaneously on their design plans and reports. Proposal. De Portola Road Pavement Rehabilitation Project Revised: October 25, 2006 SCOPE OF WORK PAGE 3 SCOPE OF WORK 7. Provide analysis of existing pavement utilizing pavement cores to be taken by C.H.J., Iric. to determine structural integrity and recommendations for the use of existing pavement during construction. Make recommendations regarding the use of recycled materials (i.e., full depth reclamation). 8. Submit preliminary work for a 30% plan review, inCluding base maps, problem locations with recommendations detennined to date, any utility relocations determined to date, and coordination with other related projects. B. PREP ARE CONSTRUCTION PLANS, DRAFT TECHNICAL SPECIFICATIONS, AND PRELIMINARY ESTIMATE OF PROBABLE COSTS. 1. Address City plan review comments to the satisfaction of the City Engineer. 2. Analyze driveway approach/access to residences aiong De Portola Road between Jedediah Smith Road and Margarita Road to determine the most economical alternatives for performing the pavement rehabilitation and reconstruction of drive~ay approaches, as necessary. 3. Prepare complete set of pavement rehabilitation plans (40-scale horizontal, 4-scale vertical) for De Portola Road. The pavement rehabilitation plan set will include a cover (title) sheet, in!iex and note sheet (if necessary), with all plan and detail sheets utilizing City title blocks. DetaiP sheets may be necessary for utility relocations and driveway reconstruction details. Separate plan sheets will be prepared for signing and striping replacement. a. Paveinent rehabilitation plans will be prepared to City ofTemecula Standards. Plans will be processed for approval by the applicable agencies. The plans will be prepared showing the locations and limits of the various types of pavement repair and rehabilitation. Pavement grinding and overlay, and complete removal and replacement of the existing street structural section are anticipated to be the primary re-construction methods. The design shall include the following new and/or modification/relocation of existing improvements: . . Street rehabilitation . Pavement · Driveway approach analysis and detail of the portions to be reconstructed, if required . Signing and striping · Traffic signal loop detectors (at Margarita Road) · Record of existing survey monuments . Erosion control, Stonn Water Pollution Prevention Plan (SWPPP), and Water Quality Management Plan (wQMD) . Construction phasing and detour plans . Traffic control . Other related work. On the pavement rehabilitation plans, show existing and proposed improvements including pavement, asphalt curb and flow line, curb drainage openings, driveways, utility locations, above ground appurtenances, trees, shrubs, irrigation lines and fences. Proposal- De Pcrtola Road Pavement Rehabilitation Project Revised: October 25, 2006 SCOPE OF WORK PAGE 4 SCOPE OF WORK b. Traffic engineering will include the following: . Review proposed pavement rehabilitation plans for Jefferson Avenue from Overland Drive to Rancho California Road as provided by GFB-Friedrich and as incorporated into the base sheets. . Traffic signal loop detection and signing and striping plans to be implemented in conjun<<tion with pavement rehabilitation plans for a distance of approximately 1.25 mile. Traffic signal loop/signing and striping plans will be prepared at 40-scale in AutoCAD 2005 compatible format. · Phased construction traffic control plans. Traffic control for the various stages of construction shall adequately safeguard the public form hazard and unnecessary inconyenience. The plans shall also be desigued for phased construction in order to maintain existing traffic circulation and provide continuous property access. The traffic control plan will be prepared by a Registered Civil Engineer. . Prepare special provision specifications, and an engineer's estimate of probable costs. . Respond to plan check comments and revise plans and specifications as necessary. Traffic engineering services will be provided by Urban Crossroads. 4. Investigate and process all required permits as necessary, including but not lilnited to the following: . Develop an Erosion Control, Storm Water Pollution Preyention Plan (SWPPP). . Prepare a Water Quality Manange Management Plan (WQMP). . Investigate and process all required permits if necessary, including but not limited to the following: NPDES and City Department of Public Works. SWPPP and WQMP preparation services will be provided by Roger Turner & Associates ofRiyerside. Up to four (4) meetings will be required with City staff. No hydrology report is included for these steps. . Construction storm water permit and de-watering permit may be needed. . At the City's option, a monitoring and sampling program can be provided by our project team. Sampling would be done a minimum of once per week when a discharge occurs. . As a separate issue, at the City's option, consultant services are available for developing CEQA and NEP A requirements for this project. An hydrology and engineering report will be required for these items. 5. Provide street improvement plans to affected utility providers for their review and'comment. When appropriate, street improyement plans will be processed for signature by the utility provider. Approyal letters will be obtained in all other cases. ' 6. Several existing driveways may require improvements between the asphalt curb line and the road right-of-way. Special detailed plans will be prepared to restore the driveways with the least impact to the improvements within the private properties. 7. Using City's boiler plate documents, prepare documents in Microsoft Word 2000 compatible format for inclusion in the bid package, to be prepared by the City, including notice inviting bids, bidder's instructions, contract bid item sheets, insurance requirements, contract documents, special provisions, and technical specifications and standard drawings. The special provisions shall follow the City form and reference the latest version of the Greenbook. Technical Proposal - De Portola Road Pavement Rehabilitation Project Revised: October 25, 2006 SCOPE OF WORK PAGE 5 SCOPE OF WORK specifications and standard drawings from each of the sub-consultants will be included to create a complete package for bid advertising and construction. One copy of the completed Special Provisions/Teclmical Specifications shall be submitted with all edits and hidden text visible and another copy shall be suitable for publication without hidden text visible. Electronic files will also be submitted. 8. Walk the entire project with construction plans in hand to look for culture that is notalready shown on the plans. This is our way of verifying that the plans are as accurate as possible. If the City allows us, we will mark the streets at removal and replacement areas and measure the dimensions for bid quantities. The markings will then be available for the contractors to view for an idea of the scope of the construction. 9. Provide documentation for all survey monumentation used in the design for use during construction. Submit electronic. files and a plot of all control coordinates for use in construction staking. 10. Submit substantially completed plans, draft specifications and bid documellts, and preliminary estimates of probable construction costs to the City for their 70% review. C. FlNALIZE PLANS AND BID PACKAGE I. Based upon City's 70% review comments, finalize all construction plans, specifications and bid doCuments, and estimates of quantities and probable costs, and re-submit as 90% plan review. 2. Submit original plans, specifications and bid documents to the City for final approval and City's reproduction of bid packages. Final approved plans (100%) shall be submitted on wet signed and stamped 24"x36" mylars. Electrouic copies of the project design files shall also be submitted to the City. OFB-Friedrich will add plan and specification reproduction to onr Scope of Work at the City's option. 3. Be available during the bidding phase of the project to: . Prepare addenda, if necessary . Answer design/technical questions . Attend bid opening, at the City's option. 4. Attend pre-construction meeting at City's request. Propos.l. De Portol. Road Pavement Rehabilitation Project Revised:~ob.r25,2006 SCOPE OF WORK PAGE 6 . , I I ; . -. . , . III' <- ( . If , . ,I ._.~ . . l' I l , . . . . If !d ,I ! ~ li! , ~ ~ ~ , lU1 . (ill1liu ,,'" . I'! "lI~ . U!! , ~ ~ , 51 ~ . it W 0 " . Ii " . . If ,I , IJ1 . I , I '~ .' I , , ! . 'f-~ -:I .e--I ' "'~ . . ' . J I 'II' ' . 1 ~I t f 'lh IT f 1 ! . 1 I ! I f ill ! h fil! Wi h1i!Jiilj! J 11ljUhlE! !lll 'i!l llllllji li!l llI~ !Jil B ~ 1,1 I!'U! h! llhh I UsII . ~' oW ~~ ~ ~ t l i I j j ! ~ i i l ~ j ! I . I . i ! 1i i I ~ . H i. P > ! . ~ M l I I J ~ h ~lQ' U ", h EXHIBIT B PAYMENT RATES AND SCHEDULE 10 R:ICIPIProjectsIPW06-10\GFB Design Agmt FEE METHOD This original proposal was a quaIifications-based proposal which implies that fees will be negotiated with the selected consultant team. A "List ofManhours" (Exhibit "A") was included in this proposal at the City's request. GFB-Friedrich's "Schedule of Hourly Rates'; was also included in this proposal as Exhibit liB" for your reference. The revised Exhibit "A" is attached . to this revised proposal. Because our consultant team has been selected for this proj ect, the original "List of Manhours" for this project was the basis for fee negotiations. This is similar to the way that the Margarita Road Widening Project was negotiated after our project team was selected. Based on Scope of Work revisions requested by the City, we propose a time and materials not-to-exceed project fee of$146,100.00. This includes procuring and paying for aerial mapping at I-foot contours from Digital Mapping Inc., the City's aerial mapping consultant. Other items remoyed from the Scope of Work include OFB-Friedrich's proposed aerial mapping and associated aerial control survey, SWPPP and WQMP services, and utility research and follow-up. Under this proposal, items of work not included in the Scope of Work are specifically excluded from this proposal. Plan and specification sets reproduced for bidding are not included in this proposal. Plan and specification sets can be printed and invoiced as an additional item of work at . the City's request. GFB-Friedrich will submit invoices to the City monthly on a time and materials not-to-exceed basis for work perrormed during the previous month. Reimbursable outside costs such as blueprinting, reproduction, printing, binding, agency fees, etc. will be billed additionally at our vendors' costs. Sub-consultants generally give us "noHo-exceed" fee proposals which we bill at our cost plus ten percent (10%). Inyoicing will be based on the hourly rates set forth on the various Hourly Rate Schedules shown in this proposal. Additional work outside of the Scope of Work will be inyoiced on a time and materials basis per Exhibit "B" or as negotiated with individual sub-consultants. Such additional work shall not commence without prior written authorization from the City. This Fee is yalid for a period of90 days from the date shown on this proposal. We will review our Scope of Work and hours if an agreement has not been reached within this 90-day period. If the City wishes to alter the Scope of Work, the Proposed Project Schedule, or the method of invoicing our work, we will be pleased to discuss such alterations. Proposal- o. Portol. Road Pavement Rehabilitation Project Rev~ed:~ob.r25.2006 FEE METHOD PAGE 29 <l .. 0' ~ 0. 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E'L:.l::.!:l G).QOD..U) ~~:I:!c~~ l!~a:ad; U:~~~O: O......N(')..... o o o o o o o 0"> .,; ... ;;; o ;1\ g .. o M o. - o N '" ~ ;;; '" M ... '" :e ;!: ~ ;!: M '" " 0"> o - !l N r1 l!l :; lI! o o ;. " UI 011 ~ i5 ~ I- 0.. 0.. "'- uiui' ..... ~ '" C 0> 'lii c w ~ " Z ri j " o '" ~ .; '" .!lL~ H "" !:!If? ilg OlOl " m .. c ~ .9>ol! o {! ~o 00 <3<3 ~ ~ .~ or c .c o . .c.., .g ~ al~ .c.... "-- cm .cg> .!la: - .( c . m 'e,i13 cO> w" c ~" 1'!::lE ,,- :!ill 0>'- !~ ! 1-- 1l~ "'" H5 ~ !l 0,,- ~b o " .!! '[ ~":. n ol!.... .c .W c -60 '~l ll._ ern .c ~ .!l~ ~ 'u c Ii: 1. 2. 3. 3a. 4. 5. 5a. 5b. 6. 6a. 7. 7a. 8. 8a. 9. January 1,2006 Exhibit "B" GFB-FRIEDRICH & ASSOC., INC. SCHEDULE OF HOURLY RATES CLASSIFICATION Principal Registered Engineer Project Manager Assistant Engineer Designer/CAD CAD Drafter Special Districts Analyst Field Inspector 2-Man Survey Party (Standard Rate) 2-Man Survey Party (Preyailing Wage Rate) 3-Man Survey Party (Standard Rate) Survey Crew Using GPS Survey Analysis Survey Research Clerical Subconsultants Principal Time as Expert Witness During Court Appearance, Waiting for Court Appearance, and Depositions Principal Time Spent on Preparation, and Office or Outside Research, Relevant to Expert Witness Work Blueprints, Reproduction & Courier Service Job Travel Deliyery Service RATE $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 150.00 per hour 125.00 per hour 100.00 per hour 90.00 per hour 90.00 per hour 80.00 per hour 80.00 per hour 90.00 per hour 185.00 per hour 205.00 per hour 225.00 per hour 290.00 per hour 11 0.00 per hour 100.00 per hour 45.00 per hour Subconsultant Fee plus 10% $ $ 280.00 per hour 200.00 per hour Vendor Costs $ $ 0.45 per mile 50.00 per hour plus mileage -or- Actual Cost plus 10% NOTE; Normal overtime will be invoiced at 1.50 times standard hourly rate. Overtime on Sundays and holidays will be invoiced at 2.00 times standard hourly rate. This Schedule of Hourly Rates is in effect through July 31, 2007 and shall be subject to annual revision based on changes in the cost of living. GFBFRates-200a SCHEDULE OF HOURLY RATES PAGE B-1 ITEM NO. 18 Approvals City Attorney Director of Finance City Manager V IJIZ Jt1- CITY OF TEMECULA AGENDA REPORT TO: City Manager/City Council FROM: William G. Hughes, Director of Public Works DATE: November 14, 2006 SUBJECT: Completion and Acceptance of the City Maintenance Facility Expansion/Field Operations Center - Phase I Project No. PW03-06 PREPARED BY: Greg Butler, Principal Engineer Kavon Haghighi, Associate Engineer RECOMMENDATION: That the City Council: 1. Accept the project, City Maintenance Facility Expansion/Field Operations Center- Phase I, Project No. PW03-06 as complete; and 2. File a Notice of Completion, release the Performance Bond; and accept a one (1) year Maintenance Bond in the amount of 10% of the contract amount; and 3. Release the Materials and Labor Bond seven (7) months after filing of the Notice of Completion, if no liens have been filed. BACKGROUND: On September 13, 2005 the City Council awarded a construction contract in the amount of $636,094.80 to Western Rim Constructors, Inc. for the City Maintenance Facility Expansion/Field Operations center - Phase I, Project No. PW03-06. The project constructed the parking area for the Maintenance Facility Expansion/Field Operations Center adjacent to City Hall. The project also included installation of storm drain, sewer, water and fire sprinkler system stubs as well as landscaping and irrigation. There were two change orders fora total of $19,746.07. The contractor has completed the work in accordance with the approved plans and specifications and to the satisfaction of the City Engineer. The construction retention for this project will be released on, or about 35 days after the Notice of Completion has been recorded. FISCAL IMPACT: The City Maintenance Facility Expansion/Field Operations Center- Phase I is a Capital Improvement project and funded through Development Impact Fees, Corporate Facilities and Capital Project Reserves. The total construction cost is $636,685.17. ATTACHMENTS: 1. Contractors Affidavit and Final Release 2. Maintenance Bond 3. Notice of Completion CITY OF TEMECULA, PUBLIC WORKS DEPARTMENT CONTRACTOR'S AFFIDAVIT AND FINAL RELEASE PROJECT NO. PW03-06 MAINTENANCE FACILITY - FIELD OPERA TlONS CENTER - PHASE 1 ~^il-.'...... This is to certify that '.' c..,~ s+r-",c.-h,!'j , (hereinafter the "CONTRACTOR") declares to the City of Temecula, under oath, that he/she/it has paid in full for all materials, supplies, labor, services, tools, equipment, and all other bills contracted for by the CONTRACTOR or by any of the CONTRACTOR's agents, employees or subcontractors used. or in contribution to the execution of it's contract with the City of Temecula, with regard to the building, erection, construction, or repair of that certain work of improvement known as PROJECT NO. PW03-06, MAINTENANCE FACILITY - FIELD OPERATIONS CENTER - PHASE 1, situated in the City of Temecula, State of California, more particularly described as follows: 151. 30 Bv,> ';, '_H (l..r k ~ '/\1<- INSERT ADDRESS OR DESCRIBE LOCATION OF WORK The CONTRACTOR declares that it knows of no unpaid debts or claims arising out of said Contract which would constitute grounds for any third party to claim a Stop Notice against of any unpaid sums owing to the CONTRACTOR. Further, in connection with the final payment of the Contract, the CONTRACTOR hereby disputes the following amounts: Description Dollar Amount to Dispute Pursuant to Public Contract Code ~7100, the CONTRACTOR does hereby fully release and acquit the. City of Temecula and all agents and employees of the City, and each of them, from any and all claims, debts, demands, or cause of action which exist or might exist in favor of the CONTRACTOR by reason of payment by the City of T emecula of any contract amount which the CONTRACTOR has not disputed above. CONTRACTOR Dated: <Z- Y-O~ By: <~ Signature ;e.t/ y c:... ~CiV>1IA~).sO... P r<''''' J. ..1 Print Name and Title ) RELEASE R-1 . R:ICIPIPROJECTSIPW03IPW03.Q6 City Hall-Mainl Fadlity ExpansionISpecslbidspac03.Q6.do EXECUTED IN DUPLICATE 'BOND NO. 02402332~ CITY OF TEMECULA, PUBLIC WORKS DEPARtMENT MAINTENANCE BOND FOR PROJECT NO. f'WO,3.06 MAfNT!NANCI!: FACff.JTY - FfELO OP1:RA nONS CENTER - PHASE 1 KNOW Al.L PERSONS BY THESE 'PRESENT THAT: WESTERN RIM CONSTRUCTORS, INC., 912 SOUTH ANDREASEN DRIVE, SUITE 108, NAME AND ADDRESS CO/llTFY>.CTOR'S ESCONDIDO, CA 92029 a CORPORATION (fill hl_f~ra Corpofllfion. _iT> orllldMdual) , herelnBf\er caRM Prtneipal. and LIBERTY MUTUAL INSURANCE COMPANY, 505 SOUTH MAIN STREET, SUITE 830, NAME AND ADDRESS OF SURFTY ORANGE, CA 92868 hereinafter called SURETY, are held and flrmly bound unto CITY OF tEMECULA, hera!nafter called OWNER. in the penal sum ot . SIXTY THREE THOUSAND S IX ~!fuNDRED , SIXTY EIGHT DOLLARS and 52 . CENTS ($ 63,668.52 ) in lawful money of the United states. said sum being not less than ten (100/0) of the Ccntnll;l valUe payable by the said City lIf Ternecula under the terms of the Contract, for the payment of which, we bind ourselves, successors, and assigns, jointly ~nd !leVel'8IIy, firmly by these presents. THE CONDmON OF, THIS OSUGA nON Is such ,Itlat whereas, the Prlncipal entered into a oertaln Contract With !he OWNER, <Iated the, 13TH " elay of SEPTEMBER, 2005, a copy of whIeh is t1eretO attaclied and made a part hersof for !he QQI1struction of PROJECT NO. PW03- 06, MAINTENANCE MeIUTY. FIELD OPERATIONS Cli:NTER. PHME 1. WHEREAS, $l\id Contract provides that the Principal Will fumlsh a bond conditlOf'1ed to guarantee for !he period of one (1) year after approval of the final est!mate on said Job, by tl1e OWNeR, I!\gainst all defects in workn1<lnship and materials whicl1 may become apparent durlng said period; and WHEREAs, the said: Contract has been G(lmpJel:ed, and was the final estimata approved on_ .;JULY ~ ,aooa 2006 NOW, THER~FORE, tH~ CONDITION Of THIS OBUGAnON IS SUCH, tl1at If within one year from the da~ of approval of the final estimate on said jOb pursuant to the Contract, the work done uncler the terms of said Contract sh~U olSClose poor 'NOrkmanship In the execution of said WOIf{, and the calT)'fng out of the terma of said Contract, or it shall appear that defe<;live materials were furnished t/1etel.mQer. then this obllgstiori shall rem~tl in full force and I/Irtue, othelwise this lnstrulnent $haft be void. As a part of the obligation secured hereby and in additf(lO to the face amount ;;peeifiecl. 00lIt$ and ref!llIOnable ~ and feesllhatl be irtcILlded. fnclud!ng,ruasonable llttomeys fees incurred by 'the City of Temecula In SI.lCCessfully enforelng thit ~lion, all to be taxed as oosts Ilnd intlll<led in any Judgment rendered. MAIIIlBlANCE BOND Mol M:lI',I'ROJecTSY'~ OItHalJ.Mal'1l.I'ldilyI:1pwkln~.rkl The Surety hereby stipulates and agrees that nQ chal'lge, extenllion <;>f tlll'lll, ;;lItemtion, or addition to the terms of the Contrset. or to the work 10 be perfQrmed It\ereunder. or to the specifications aceompanying the same, shall In any way affect Its obligatlonll on this bond, and it does hereby w;;Iive notice of any such change, extension of time, alteration, or addition to the terms of the Contract, or to the work, or to the Specifications. Signed and sealed this day of OCTOBER ,:@QS;2006 9TH (Seal) LIBERTY MUTUAL INSURANCE COMPANY WESTERN RIM CONSTRUCTORS, INC. PR.lNClPAL K~~_ SUR~ ~ I:ly: ~.J~ KAREN. JEAN ~~RNEY-IN-F~CT (Ti1Ie) By: RAY C. SAMUELSON (Heme) PREslDENT (11Ue) By; APPROVED AS TO fORM: (HarM) Pl!Ier t.t ~. CIIv AIItlm... CALIFORNIA ALL.PURPOSE ACKNOWLEDGMENT State of CALIFORNIA } County of SAN DIEGO On 10/09/2006 before me, DEBORAH D. DAVIS, NOTARY PUBLIC DATE NAME, TiTlE OF OFFICER - E.G., "JANE DOE, NOTARY PUBLIC" personally appeared RAY C. SAMUELSON, KAREN JEAN HALL NAME(S) OF SIGNEA{S) IXI personally known to me - OR - 0 proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and ac- knowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. ~ ~;;o:- ~ ~D~B;-R;;;;. M~S '1 N r- ' COMM. #1412744 l: ~ ~ e: NOTARV PUBUC-CAUFORNIA ~ - ... SAN DIEGO COUNTY . MyComm.Exp. APRIL21.2007 WITNESS my hand and official seal. ^ - [J(\ SIGNATURE OF NOTARY THIS CERTIFICATE MUST BE ATTACHED TO THE DOCUMENr DESCRIBED AT RIGHT: OPTIONAL SECTION TITLE OR TYPE OF DOCUMENT NUMBER OF PAGES DATE OF DOCUMENT Though th~ data requested here is not required by law, R could prevent fraudulent reattachment of this form. SIGNER(S} OTHER THAN NAMED ABOVE No. 5193 _ OPTIONAL SECTION- CAPACITY CLAIMED BY SIGNER Though statute does not require the Notary to fill in the data below, doing so may prove invaluable to persons relying on the document. o INDIVIDUAL !Xl CORPORATE OFFICER(S) PRESIDENT TlnE(S) o PARTNER(S) 0 LIMITED o GENERAL IiU ATTORNEY-IN-FACT o TRUSTEE(S) o GUARDIAN/CONSERVATOR o OTHER: SIGNER IS REPRESENTING: NAME OF PEASON(S) OR ENTIlY(IES) THIS POWER OF ATTORNEY IS NOT VALID UNLESS IT IS PRINTED ON RED BACKGROUND. This Power of Attorney limits the acts of those named herein, and they have no authority to bind the Company except in the manner and to the extent herein stated. 1894897 LIBERTY MUTUAL INSURANCE COMPANY BOSTON,MASSACHUSETTS POWER OF ATTORNEY KNOW ALL PERSONS BY THESE PRESENTS: That Liberty Mutual Insurance Company (the "Company"), a Massachusetts stock insurance companYi pursuant to and by authority of the By~law and Authorization hereinafter set forth, does hereby name, constitute and appoint JOHN G. MALONEY, HEIJSNMALON~Y,MARK D.I~TAAOI..A,KAAENJ.EAN HALL,DI;l:lORA~ D. DAVIS, MATTHEW C. GAYNOR,A/,;;l.OFTHEC:1TY OF ESCc>I'l[)II)(),STATE OFCALlFOi=lNJ~;.:.:""""..:."""................................ I.each individually if there be mOF€l:-:rtj~n one:f)~med, its tr~,~'::~6d lawful attol'n~y:_in_-fact t6_)'B,~ke, exe._c:_~t:e', seal, ackn()_\yle~geand deliver, for and cnits behalf as surety and as its act and.-:cte,' ~d, am;",~n. d all und, , ".M."" k,.. Ings, bonds, ree, 0" .g,' r1.,i.zance:s_-.:an,d oth~r..-:~t1tety Obligation,s, '.-i,o,:the penal sum not exceeding TWENTY FIVE MILLION AND 001100""'''''''''''''''' ,...pOLL~RS($ 25;OOO,OOO.00"'~'. ) each, and the execution of such undertakings, bO:,ne$~, r~gQQnizances,'W1cl:,:9ther surety o~I!~~,~ons, in:PwsuanC1!"::9f.,1hese pres~ry~,J,,:'$hall be as binding upon the Company as if they had been duly signed bY the presidentlil1d__l;lttested by th~i:'secretary-ol.thE!, Company-.in their own,.proper persons. ARTICLE XIII - Exec~tion of Contracls: Section 5. Sure~B()~d" and UndeMkings. Any officer of the Company authorized for that purpose in writing by the chairman or the president, and subject to such limitations as the :>. chairman or the president may prescribe, shall appoint such attorneys~in-fact, as may be necessary to actin behalf of the Company to make, ClJ execute, seal, acknowledge and deliver as surety any and all undertakings, bonds, recognizances and other surety obligations. Such " ~ ,. "iii attorneys-in-fact, subjectto the limitations set forth in their respective powers of attorney, shall have full power to bind the Company by their en o signature and execution of any such instruments and to attach thereto the seal of the Company. ,When so executed such instruments shall be CD 2" as binding as if signed by the president and attested by the secretary. .~ ~ . ~ ~ m By the following Instrument the chairman or the president hasauthorized the officer or other official named therein to appoint attorneys~in-fact: .D cG) ~ m_ C ..a C Pursuant to Article XIII, Section 5 of the By-Laws, Garnet W. Elliott, Assistant Secretary of Liberty Mutual Insurance Company, is hereby ClJ !ri ~ authorized to appoint such attorneys~in~fact as may be necessary to act in behalf of the Company to make, execute, seal, acknowledge and _ c ~ e. deliver as surety any and all undertakings, bonds, recognizances and other surety obligations. rJ~ U G) That the By.law and the Authorization set forth above are true copies thereof and are now in full force and effect. ~m -..o~> E'E IN WITNESS WHEREOF, this Power of Attorney has been subscribed by an authorized officer or official of the Company 'and the corporate seal of 0 =CV _ Liberty Mutual Insurance Company has been affixed thereto in Plymouth Meeting, Pennsylvania this .28th day of Februarv , :a:: , a. _m _2 .:: ~ 2006 _ ." ~ ~.~ j e! LIBERTY MUTUAL INSURANCE COMPANY ~i Gr~ /I...L-- ---/~ .j OE oS Byl.- ......-p b./~ ~. I:l.m c ca Garnet W. Elliott, AssistantSecretary .!!.,o aiii COMMONWEALTH OF PENNSYLVANIA ss =~ li'l!! COUNTY OF MONTGOMERYOc ~G) ~G) ~:E Onthis 28th day of Februarv . . ' 2006 , before me, a Notary Public, personally came Garnet W, Elliott; to me known, and acknowledged ,:S"..~ E that he is an Assistant Secretary of Liberty Mutual Insurance Gompany;that he knows the seal, of said corporation; and that he executed the above ..... ... $ Power of Attorney and affixed, thec:orporate. seal of Uberty Mutualln,surance Company thereto with the. authotityand at the direction of said corporation. ~;::l :; ~ IN TESTIMO~Y WH . 1'1 ~ unto subscribed my name and ~xed my notarial seal at Plymouth Meeting, Pennsylvania, on the day and year2!\~ 'ajg firstaboVeW{illen'$o~ Ol'l~,,<< -COMMONWe~'rHO;Pl!NN . .VANIA ?J5 ~ ' ~.~ il '" <> . ()~,.'~-P ......,.,~~_~"..., 'BY~' - .,.ji ...~~~~a~;;r~;~::=~"1'~",~' ~~ , ,... ...'~"f\J!!' 1",e"n~~o{{e<;!,.copy;winf~Mo,~e~i:j!lffeqt.onlh!l.i:jate.oIJl:lls~1ficat";~Oi:jJ.dolt;lrther.Qe!lifyJ!:1at1tie:llffiCe{orl!fflcl!i!w.hoexecotedthe.. . '''sa;dPo\Vei.ofattOliiey.'i$~Msistarit$ecreta!YSPeci..llyc<\uth"nte<!jjythe-cbaifl11ai"1 "r.the.preSicf<liitto~ppol"ta!l<1n1eys:i,,'tacta$p,?vigecfJnArti9Ie ... Xfll,~etitI!,n50fllJ<lB~:!"W$6fLi~~tlYMil!uanil.sllr!iriBeC"lT!P;any.\ii...>....c.,........... .... ......'. ....... ........'........ .......... ....- .' .'.'.,....'..., '.', ' , .' ..,.l1i~!'leffirii;;lt~.~iidii;jfabo~el1i>"'efi>jj.~&tti~yina\f1ie"i~tie~~~i!..C$it)1ire;,{,.;,e~h~ni~lyiep@\.Ic.e~"ignaltJr..~urid~{"iiitlly~iith"rity..oftli~., ..'. Jolf9Wi"g"i>teoff!1eb(l~rdo.lcfi",~ts"I{cibe.~,~(!ju!111"sar""ceQ!;>li1patlY!it?meeti"gd~lyi:aIl8l1ji11i:jheicfc)nth"t~tbcfW9fM..r$h,19&9.... '. . '..'.'.\V~t€l}th~ktlJ~I~G~iittJl~O{~~i;h~~iq~Iy.{l!\lr~Jqb~if~i~ii,,1!Jre91a~Y~i~~ilf~~#~l'f~~CQ~p~,.\Yh~re"~r~Pl1~lITi"g~j)~"i~i.' . '",.. ".. .,certifledcQpyqtanYp"we{oi"tlil.iT1ey'issllocfJjythoQ9I\1P""YlojqoJ\ne9ti"nwitl1sjJrety~oI)cfK'$"ail'!l",~(lIicf'i\rilni"dingtiJJQnlh..coiripa:i1Y . '.'Wit~lb"s.~nie.force.ani:j$!feot<istttoughn1a"a..IJy'"ffix.ei:j,'" ..... " ." i;"~_~~~~~~.1i!F'.. ."'" --,::.-:.-::"","",',-'- >~.---- RECORDING REQUESTED BY AND RETURN TO: CITY CLERK CITY OF TEMECULA P.O. Box 9033 43200 Business Park Drive Temeoula, CA 925B9-9033 NOTICE OF COMPLETION NOTICE IS HEREBY GIVEN THAT: 1. The City of Temecula is the owner of the property hereinafter described. 2. The full address of the City of Temecula is 43200 Business Park Drive, Temecula, California 92590. 3. The Nature of Interest is a Contract which was awarded by the City of Temecula to Western Rim Contractors, Inc, 912 S. Andreasen Dr., #108, Escondido, CA 92029 to perform the following work of improvement: CITY MAINTENANCE FACILITY - FIELD OPERATIONS CENTER - PHASE I PROJECT NO. PW03-06 4. Said work was completed by said company according to plans and specifications and to the satisfaction of the Director of Public Works of the City of Temecula and that said work was accepted by the City Council of the City of T emecula at a regular meeting thereof held on November 14, 2006. That upon said contract the Liberty Mutual Insurance Company was surety for the bond given by the said company as required by law. 5. The property on which said work of improvement was completed is in the City of Temecula, County of Riverside, State of California, and is described as follows: City Maintenance Facility - Field Operations Center - Phase I - Project No. PW03-06 6. The location of said property is: 43200 Business Park Dr.. Temecula, California Dated at Temecula, California, this 14'h day of November, 2006 City of T emecula Susan W. Jones MMC, City Clerk STATE OF CALIFORNIA COUNTY OF RIVERSIDE ss .CITY OF TEMECULA I, Susan W. Jones CMC, City Clerk of the City of Temecula, California and do hereby certify under penalty of perjury, that the foregoing NOTICE OF COMPLETION is true and correct, and that said NOTICE OF COMPLETION was duly and regularly ordered to be recorded in the Office of the County Recorder of Riverside by said City Council. Dated at Temecula, California, this 14th day of November, 2006. City of Temecula Susan W. Jones MMC, City Clerk R:\CIP\PROJECTS\PW03\PWoa.06 Maint. Facility Phase U\Agreements\NOC. Western Rim PW03.06,docProjects\PW03-06\Agreements\NOC - Western Rim PW03.Q6 ITEM NO. 19 Approvals City Attorney Director of Finance City Manager ~ iJlL Jp CITY OF TEMECULA AGENDA REPORT TO: City Manager/City Council FROM: William G. Hughes, Director of Public Works/City Engineer DATE: November 14, 2006 SUBJECT: Acceptance of certain Public Streets into the City-Maintained System within Tract Map No. 30088 (Located west of Margarita Road, south of Date Street and north of Harveston Way within the Harveston Subdivision) PREPARED BY: Ronald J. Parks, Deputy Director of Public Works Steve Charette, Associate Engineer RECOMMENDATION: That the City Council: 1. Adopt a resolution entitled: RESOLUTION NO. 06- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA ACCEPTING CERTAIN PUBLIC STREETS INTO THE CITY-MAINTAINED SYSTEM (WITHIN TRACT NO. 30088) BACKGROUND: Tract Map No. 30088 was recorded by the County Recorder on September 17, 2002. The owner dedicated to public use for street and public utility purposes streets designated as lettered lots on the map. The City Clerk accepted the offers of dedication. Public Works Staff reviewed and inspected the public improvements and all required repairs and replacements were satisfactorily completed. However, the one-year Warranty Bonds and Labor and Materials Bonds have not been released. The Warranty Bonds will be released at the end of the one-year period in October, 2007. The Labor and Materials Bonds will be released six months into the one-year warranty period in April 2007. The public streets now being accepted by this action are as follows: Portsmouth Road, Hudson Court, Easton Place, and a portion of Township Road. FISCAL IMPACT: Periodic surface and / or structural maintenance will be required every 5 to 8 years. ATTACHMENTS: Resolution No. 06 - with Exhibits "A - B" inclusive. EXHIBIT "A" TO RESOLUTION NO. 2006 - Accepting a certain public street offered to and accepted by the City of Temecula as indicated on Tract Map 30088 into the City-Maintained Street System as described as follows: Tract Map 30088 1. Lot "A" (portion of Hudson Court) of said Tract Map No. 30088 2. Lot "B" (Easton Place) of said Tract Map No. 30088 3. Lot "B" (Portsmouth Road) of said Tract Map No. 30088 4. Lot "B" (Township Road) of said Tract Map No. 30088 5. Lot "C" (portion of Hudson Court) of said Tract Map No. 30088 RESOLUTION NO. 06-00 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA ACCEPTING CERTAIN PUBLIC STREETS INTO THE CITY-MAINTAINED SYSTEM (WITHIN TRACT MAP NO. 30088) THE CITY COUNCIL OF THE CITY OF TEMECULA DOES HEREBY RESOLVE AS FOLLOWS: WHEREAS, On September 23, 2002, the County Recorder recorded Tract Map No. 30088 in which an offer of dedication for street and public utility purposes was accepted by the City of Temecula from Lennar Homes of California, Inc.; and, WHEREAS, City Public Works Staff reviewed and inspected the public improvements and all repairs and replacements were satisfactorily completed; and, WHEREAS, Only the Warranty Bond and Labor and Material Bond pertaining to this tract have not been released; and, NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Temecula hereby accepts into the City-Maintained Street System the streets offered to and accepted by the City of Temecuiil described in Exhibits "A" and "B" attached hereto. PASSED, APPROVED, AND ADOPTED by the City Council of the City of Temecula this 14th day of November, 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 14th day of November, 2006, by the following vote: NOES: COUNCILMEMBERS: COUNCILMEMBERS: AYES: ABSENT: ABSTAIN: COUNCILMEMBERS: COUNCILMEMBERS: Susan W. Jones, MMC City Clerk EXHIBIT "An TO RESOLUTION NO. 2006 - Accepting a certain public street offered to and accepted by the City of Temecula as indicated on Tract Map 30088 into the City-Maintained Street System as described as follows: Tract Map 30088 1. Lot "A" (portion of Hudson Court) of said Tract Map No. 30088 2. Lot "8" (Easton Place) of said Tract Map No. 30088 3. Lot "B" (Portsmouth Road) of said Tract Map No. 30088 4. Lot "8" (Township Road) of said Tract Map No. 30088 5. Lot "C" (portion of Hudson Court) of said Tract Map No. 30088 EXHIBIT "B" TO RESOLUTION NO. 2006-_ TRACT NO. 30088 VICINITY MAP ""~ 1 'f TRACT N O. 29S.. u -, ~.B. .JZJ / ~ Lar . .v-60 UlT~ ~t -6 :. , ' \ \ \l. IN68.36'156.n.-1 ""-"(R)- ~'::., ""'" r"" INsT (!!Z';"l}JL~ fREc;oRDei;2fi5829. o.si I 7-aJ-OOJ I CJl.~QlfI\f: , CJl. mlNSfflr RlWl .. $I ... o ~ <> " <> u; Q ~ ~ Q '" >: <> " r: ... ~ ::;..--- .--- ~ ~ .. ~ ~ ... d ~ I Q ... .. o ~ ITEM NO. 21 Approvals City Attorney Director of Finance City Manager ~ ell J/ CITY OF TEMECULA AGENDA REPORT TO: City Manager/City Council FROM: William G. Hughes, Director of Public Works/City Engineer DATE: November 14, 2006 SUBJECT: Summary Vacation of a Drainage Easement located as shown at Lot 1 and 2 of Parcel Map No. 23354 (Abbott Vascular Inc. property at Motor Car Parkway) PREPARED BY: Ronald J. Parks, Deputy Director of Public Works Steve Charette, Associate Engineer RECOMMENDATION: That the City Council: 1. Adopt a resolution entitled: RESOLUTION NO. 06- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA TO SUMMARILY VACATE AN EASEMENT FOR DRAINAGE PURPOSES LOCATED AS SHOWN AT LOT 1 AND 2 OF PARCEL MAP NO. 23354 PURSUANT TO THE AUTHORITY PROVIDED BY CHAPTER 4, PART 3, DIVISION 9 OF THE STREETS AND HIGHWAY CODE BACKGROUND: The subject drainage easement was dedicated to the County of Riverside as part of Parcel Map No. 23354 recorded on October 5, 1988. As part of the original development of the site the owner installed a storm drain system within the easement to drain Parcels 1 and 2 to an existing drain pipe in Motorcar Parkway. The site has subsequently been re- graded to accommodate the construction of a proposed parking structure for Abbott Vascular, Inc. The new grading has re-directed the lot drainage away from the existing drainage easement and therefore said easement is no longer necessary. Drainage will be re-directed to an existing drainage facility and easement located at the northwest corner of Parcel 1. The existing drainage facilities within the easement will be removed as part of the construction of the proposed parking structure. The current owner of Parcel 1 and 2, Abbott Vascular Inc., has formally requested the vacation of said drainage easement. Pursuant to Section 8333 of the Streets & Highway Code a public service easement may be summarily vacated if the easement has been relocated and there are no other public facilities within the easement. Staff therefore recommends the summary vacation of said drainage easement since the existing drainage easement crossing Parcels 1 and 2 of Parcel Map 23354 is no longer necessary and no other public facilities exist within the easement. FISCAL IMPACT: None. ATTACHMENTS: Resolution No. 06 -_ with Exhibits "A" & "B", Inclusive RESOLUTION NO. 06- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA TO SUMMARILY VACATE AN EASEMENT FOR DRAINAGE PURPOSES LOCATED AS SHOWN AT LOT 1 AND 2 OF PARCEL MAP NO. 23354 PURSUANT TO THE AUTHORITY PROVIDED BY CHAPTER 4, PART 3, DIVISION 9 OF THE STREETS AND HIGHWAY CODE 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 declares as follows: A. That the City Council intends to summarily vacate an easement for drainage purposes located at Parcels 1 and 2 of Parcel Map No. 23354 in the City of Temecula more particularly described in Exhibits "A" and "8" which are attached hereto and incorporated herein by this reference. 8. The drainage easement to be vacated currently serves only Parcels 1 and 2 of said parcel map. C. The re-grading of the site to accommodate a parking structure has re- directed lot drainage away from the existing drainage easement to an alternate existing easement and therefore said easement as described in Exhibits "A" and "8" is no longer necessary. D. This vacation is made pursuant to Section 8330 to 8336 of the Streets and Highways Code. E. There are no public utility easements or facilities which will be affected by this vacation. Section 2. The easement described in Exhibits "A" and "8" which are attached hereto and incorporated herein by this reference is hereby vacated and from and after the date of this Resolution is recorded, this drainage easement shall no longer constitute an easement or right of way of the City of Temecula and shall revert to the property owner. Section 3. The City Clerk shall certify the adoption of this Resolution and shall cause a certified copy of the Resolution to be recorded pursuant to Streets and Highway Code Section 8336. PASSED, APPROVED, AND ADOPTED by the City Council of the City of Temecula this 14th day of November, 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 14th day of November, 2006, by the following vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: ABSTAIN: COUNCIL MEMBERS: Susan W. Jones, MMC City Clerk July 27,2006 Sheet 2 of 2 EXHIBIT "A" LEGAL DESCRIPTION LOT LINE ADJUSTMENT NO. P A 06-0151 VACATION OF STORM DRAIN EASEMENT THENCE ALONG SAID CURVE AN ARC DISTANCE OF 45.49 FEET TO A POINT IN SAID NORTHERLY RIGHT-WAY; THENCE ALONS SAID RIGHT-OF-WAY NORTH 79047' 15" EAST A DISTANCE OF 31.07 FEET TO THE TRUE POINT OF BEGINNING. CONTAINING: 1,313.48 SQ. FT., 0.03 ACRES, MORE OR LESS. BEING A PORTION OF PARCEL "A" IN THE CITY OF TEMECULA, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, AS SHOWN IN NOTICE OF LOT LINE ADJUSTMENT NO. PA06-0151 RECORDED JULY 11,2006 AS INSTRUMENT NO. 2006-05037353 OF OFFICIAL RECORDS IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, STATE OF CALIFORNIA, BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: BEGINNING AT THE NORTHWEST CORNER OF SAID PARCEL "A"; THENCE SOUTH 10012'45" WEST A DISTANCE OF 67.57 FEET ALONG THE EASTERLY RIGHT-OF-WAY OF SAID YNEZ ROAD; THENCE LEAVING SAID RIGHT-OF-WAY NORTH 62046'14" EAST A DISTANCE OF 56.37 FEET; THENCE NORTH 10012'45" EAST A DISTANCE OF 20.00 FEET; THENCE NORTH 02036'48" EAST A DISTANCE OF 42.56 FEET TO A POINT IN THE NORTHERLY BOUNDARY OF SAID PARCEL "A"; THENCE NORTH 70017'52" EAST A DISTANCE OF 64.18 FEET TO THE POINT OF BEGINNING. CONTAINING: 3,621.44 SQ. FT., 0.08 ACRES, MORE OR LESS. EXHIBIT "B" ATTACHED HERETO AND BY THE REFERENCE MADE APART HEREOF. This was prepared by me. Or under my direction. ,Jr~:;'",,~:~:~~?\~\ !~' i ,<"",1)c,'. \ l"" 'w' I! " \\ !( ..'.. i ,'.. ~t~4-'<L L~ Ii \~\ \ 'c<.<_ . .'f)J /1 ;;t:\\ ,';.>, t-,J(i. C~,%,;3 ~,\",.J' '~;~::;i.:~:,~~:F~'~/ ..... EXHIBIT "B" STORM DRAIN EASEMENT VACATION "'aT! ff 21 1.1.J\. ~';I~. ~J\~~"~.,jJ:!:!'~ ~~8j j~';I~'1. lB~. ~~~~"~:!:!~~1:!:!~ REC. 7-11-0.6, o.R. /-....~SEE DETAIL iI" I BElOW 1 \--.. '-~ :-:~_.... ~\ \ // P.o.B. <;n\ ~ \ \ \ \ PARCEl "8" ~ @ \ ~ 2;\ \ \ ~J\8j~~1 ~ , \ ~J\8j~~1 ~ l' \ \ \ API\(' 921-680.-0.0..J 921-680.-0.!.J ~ \ \ \ \ ~ @ \ \ \ P.M 2.J.J54 \50' P.M 2.J.J54 ~" \6 0\ P.MB. 152/74-76 \ P.MB. 152/74-76 \50\ 4,\ i\ ~ w\ @ ~ \Q) P.o.c. NO. Cl C2 C.J CURVE TABLE DEl TA RADIUS !.J20.'25" 50. 0.0.' 1576'12" 60.0.0.' 65V9'57" 40.0.0.' LENGTH 1/.64' 15.99' 45.49' DETAIL ':4" SCALE I" = 40.' LINE TABLE NO. BEARING L! N!4 '.J7'l8"E L2 N79'47'15"E L.J N!4'.J7'18"E L4 N7522'42''W L5 S!4'.J7'18''W L6 N79'47'l5"E MAP PREPARED BY EXCEl ENGINEERING 440. STA ff PLACE ESCONDIDo, CALIFORNIA 920.29 TEl. (760.) 745-8118 DA ff EXHIBIT PREPARED: MA Y 24, 20.0.6 ~ I 0. 20.0. 40.0. LENGTH .J3. 0.6 , 3.29' 40. 0.0.' 20.0.0.' 40.0.0.' .J/.0.7' -- N79'47'1?'r 3.29 LEGENO ~ EASEMENT P. 0. C. POINT OF COMMENCEMENT T.P.0.B. 77?UE POINT OF BEGINNING 'lE L1f ~J\8j~~1 ~ --- ITEM NO. 21 Approvals City Attorney Director of Finance City Manager JM.f"" iJlL Jy CITY OF TEMECULA AGENDA REPORT TO: City Manager/City Council FROM: Anthony Elmo, Director of Building and Safety DATE: November 14, 2006 SUBJECT: Completion and Acceptance of the Temecula Police Department Sub-Station at the Promenade Mall PREPARED BY: Anthony Elmo, Director of Building and Safety RECOMMENDATION: That the City Council: 1. Accept the construction of the Temecula Police Department Sub-Station at the Promenade Mall as complete; 2. Direct the City Clerk to file and record the Notice of Completion, release the Performance Bond and accept a one year Maintenance Bond in the amount of 10% of the contract amount and; 3. Release the Materials and Labor Bond seven (7) months after the filing of the Notice of Completion if no liens have been filed. BACKGROUND: On November 22, 2005, the City Council awarded a construction contractfor the construction of the Police Sub-Station at the Promenade Mall to Royal Pacific Construction of Oceanside. The project consisted of the construction of approximately 1,700 square feet establishing public counter, office and conference space within the Promenade Mall. The contractor has completed the work to the satisfaction of the Director of Building and Safety and all work will have a warranty for a period of one (1) year from the date of acceptance by the City. Due to the cancellation of the Regular Meeting of the City Council on October 24, 2006 and to be in compliance with provisions of the Public Contracts Code, the retainer for this project was released. The final construction contract amount is $259,476. FISCAL IMPACT: ATTACHMENTS: The Police Sub-Station project is a Capital Improvement Project. Notice of Completion RECORDING REQUESTED BY AND RETURN TO: CITY CLERK CITY OF TEMECULA P.O. Box 9033 43200 Business Park Drive Temecula, CA 92589-9033 NOTICE OF COMPLETION NOTICE IS HEREBY GIVEN THAT 1. The City of Temecula is the owner of the property hereinafter described. 2. The full address of the City of Temecula is 43200 Business Park Drive, Temecula, California 92590. 3. The Nature of Interest is a Contract which was awarded by the City of Temecula to Roval Pacific Construction 4011 Avenida de la Plata Suite 301 Oceanside. CA 92056 to perform the following work of improvement: Temecula Valley Police Station at the Promenade 805-0745 4. Said work was completed by said company according to plans and specifications and to the satisfaction ofthe Director of Building and Safety ofthe City ofTemecula and that said work was accepted by the City Council ofthe City ofTemecula at a regular meeting thereof held on November 14. 2006. That upon said contract the Lincoln General Insurance Companv was surety for the bond given by the said company as required by law. 5. The property on which said work of improvement was completed is in the City of Temecula, County of Riverside, State of California, and is described as follows: Temecula Vallev Police Station at the Promenade - 805-0745 6. The location of said property is: 40820 Winchester Road, Temecula, California Dated at Temecula, California, this 14 .h dav of. November 2006 of Council MeetinCl City of T emecula Susan W Jones MMC, City Clerk STATE OF CALIFORNIA COUNTY OF RIVERSIDE ss CITY OF TEMECULA I, Susan W. Jones MMC, City Clerk ofthe City of Temecula, California and do hereby certify under penalty of perjury, that the foregoing NOTICE OF COMPLETION is true and correct, and that said NOTICE OF COMPLETION was duly and regularly ordered to be recorded in the Office of the County Recorder of Riverside by said City Council. Dated at Temecula, California, this _14_'h day of November, 2006 of Council Meeting. City of T emecula Susan W Jones MMC, City Clerk C\ WINDOWS\apsdoc\nettemp\5124\$ASQpdf821916.doc Form ITEM NO. 22 Approvals City Attorney Director of Finance City Manager ~ iJlL Jp CITY OF TEMECULA AGENDA REPORT TO: City Manager/City Council FROM: Howard Windsor, Fire Chief DATE: November 14, 2006 SUBJECT: First Amendment to Contract with Charles Abbott for Fire Plan Check Services PREPARED BY: Sean Dakin, Deputy Fire Marshal RECOMMENDATION: That the City Council approve the First Amendment for fire plan check services with Charles Abbott in the amount of $60,000. BACKGROUND: On May 1,2006 City Council approved a contract in the amount of $75,000 with Charles Abbott and Associates, a Fire Protection Engineering company that performs outside plan check services on an as needed basis. These services are utilized when fire prevention staff experiences increased levels of applications that exceed their abilities to process plan submittals within acceptable timeframes (12 working days for new submittals and 5-7 working days for re-submittals). These past several months there has been an increase in plan checks and numerous requests for required fire system field inspections. With plan reviewers out in the field covering inspections, a larger than normal percentage of plan checks were outsourced in order to meet City of Temecula customer service standards for plan check turnaround timelines. This unexpected extensive use of contract services will exhaust the originally contracted amount of $75,000 prior to the end of the fiscal year; therefore it is necessary to increase the contract amount to $135,000. We are currently seeking to fill one recently vacant Fire Safety Specialist position and a Fire Systems Inspector position. The vacancies should be filled within the next 2 months. We expect the volume of applications being sent out to decrease when all Fire Safety Specialists positions are filled and requests for field inspections level off. However, this amendment is necessary to allow for the continued occasional outside plan review as needed to allow us to constantly meet the City's stated plan check processing time line goals of 12 working days for new submittals and 5-7 working days for re-submittals. Funds for this amendment are available in the current fiscal year's budget. FISCAL IMPACT: The increase cost of the fire plan check services will be offset by additional revenue in the fiscal year 2006/07 operating budget. ATTACHMENTS: First Amendment FIRST AMENDMENT TO AGREEMENT BETWEEN CITY OF TEMECULA AND Charles Abbott Associates, Inc. THIS FIRST AMENDMENT is made and entered into as of November 14, 2006 by and between the City of Temecula, a municipal corporation ("City") and Charles Abbott Associates, Inc., ("Consultant"). 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. agreement entitled $75,000.00. On May 1, 2006 the City and Consultant entered into that certain "Agreement for Consultant Services" ("Agreement") in the amount of B. The parties now desire to increase the payment for services in the amount of $60,000.00 and amend the Agreement as set forth in this Amendment. 2. Section 4a. of the Agreement is hereby amended to read as follows: a. The City agrees to pay Consultant monthly, in accordance with the payment rates and schedules and terms set forth in Exhibit B for services described in Exhibit A, attached hereto and incorporated herein by this reference as though set forth in full. The first amendment amount shall not exceed Sixty Thousand Dollars and no Cents ($60,000.00) for additional plan check service for a total contract amount, of One Hundred Thirty Five Thousand Dollars and no Cents ($135,000.00). 4. Except for the changes specifically set forth herein, all other terms and conditions of the Agreement shall remain in full force and effect. p:/Agreement Samples.Amendment.2003 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, MMC, City Clerk Approved As to Form: BY: Peter M. Thorson, City Attorney CONSULTANT Charles Abbott Associates, Inc. 27401 Los Altos, Suite 220 Mission Viejo, Ca. 92691 Dennis Lockhard, Manager Fire Prevention Services BY: NAME: TITLE: BY: NAME: TITLE: (Two Signatures Required For Corporations) R:/purchasing/agreements.alliwin harvestoll.amend 1.fieldman 2002 2 ITEM NO. 23 Approvals City Attorney Director of Finance City Manager V /J12 Jp CITY OF TEMECULA AGENDA REPORT TO: City Manager/City Council FROM: Herman D. Parker, Director of Community Services DATE: November 14, 2006 SUBJECT: Temecula Public Library Fees PREPARED BY: Phyllis L. Ruse, Deputy Director of Community Services RECOMMENDATION: That the City Council adopt a resolution entitled: RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA APPROVING A FEE SCHEDULE FOR THE TEMECULA PUBLIC LIBRARY BACKGROUND: The Temecula Public Library construction is nearing completion. The facility was designed with the plan of several areas being made available to the public as meeting and event spaces. The library will offer amenities, such as, a piano and teleconferencing equipment in the community room which will also be available for rent. The proposed facilities rental fees are consistent with other City rental fees at facilities such as the Community Recreation Center. In addition, the library will have equipment available to the public for copying and printing services. The equipment will have color and black and white printing/copying capabilities. The library will also offer faxing services. The proposed fees are set at a cost recovery level. Finally, a structure for fees and fines for such items as overdue, lost and damaged materials is needed. The structure presented by the attached fee schedule for these types of fees and fines is consistent with the Riverside County Library System schedule. FISCAL IMPACT: Revenues generated by the proposed fees are estimated to be $193,000 per year. These funds will be used to offset operation and maintenance costs of the new library. ATTACHMENTS: Resolution Fee Schedule RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA APPROVING A FEE SCHEDULE FOR THE TEMECULA PUBLIC LIBRARY THE CITY COUNCIL OF THE CITY OF TEMECULA RESOLVES AS FOLLOWS: Section 1. circumstances: This resolution is adopted in recognition of the following facts and A. The City of Temecula (City) has designed and constructed a new city public library known as the Temecula Public Library. B. The City anticipates entering into a library operating agreement with the Riverside County Library System (RCLS) for the operations of the library. C. The City desires to provide printing, copying and faxing services to the general public. D. The City desires to provide opportunities to the public to reserve and use certain public meeting spaces within the library. E. It is necessary to establish fees to help defray costs associated with providing the required staffing, utility costs, maintenance, and other costs associated with the use of technology services and facilities. D. The City also desires to establish fees associated with overdue, lost and damaged library materials. Section 2. The Fee Schedule for the Temecula Public Library, attached hereto as Exhibit "A", is hereby adopted. Section 3. The City Clerk shall certify to the passage and adoption of the Resolution. PASSED, APPROVED, AND ADOPTED, by the City Council of the City of Temecula this _ day of , 2006. Ron Roberts Mayor ATTEST: Susan W. Jones, MMC City Clerk C\ WIN DOWS\apsdoc\nettemp\6056\$ASQpdf822369. DOC [SEAL] STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss CITY OF TEMECULA) I, Susan W. Jones, City Clerk of the City of Temecula, California, do hereby certify that Resolution No. was duly and regularly adopted by the City Council of the City of Temecula at a regular meeting thereof held on the _ day of , 2006 by the following vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: C\ WIN DOWS\apsdoc\nettemp\6056\$ASQpdf822369. DOC EXHIBIT "A" CITY OF TEMECULA COMMUNITY SERVICES DEPARTMENT FEE SCHEDULE TEMECULA PUBLIC LIBRARY FACILITIES RESERVATIONS/RENTALS: Group 1: City of Temecula, TCSD sponsored and co-sponsored events, Temecula Valley Unified School District, and Friends of the Temecula Library Group 2: Temecula-based non-profit organizations Group 3: Temecula residents and non-Temecula-based nOFl profit organizations Group 4: Non-Temecula residents and for-profit organizations Temecula Public Library GROUP I GROUP II GROBIII GROUP IV HOURLY HOURLY HOURLY HOURLY RATE RATE RATE RATE Community Room A No Charge $12 $24 $35 Community Room B No Charge $12 $24 $25 Community Room A & B No Charge $24 $42 $70 Kitchen in conjunction only No Charge $5 $8 $14 w/Communitv Room reservation Small Conference/Study Room No Charge $9 $11 $25 Grace Mellman Heritaae Room No Charae $12 $24 $35 Piano in conjunction only No Charge Cost of Cost of Cost of w/Community Room reservation tuning tuning tuning Teleconferencing equipment in No Charge $10 set up $15 set up $20 set up conjunction only w/community room or conference room reservation RULES: D Rates are per hour. D For-profit business activities may only be conducted in rented spaces within the library. Any for-profit organization or person representing a for-profit organization must complete the facilities use request form, submit any additional information required and pay the applicable fees to reserve a rentable for the purpose of conducting business activities. D Piano shall be tuned by City's contractor and fee shall be paid to City by renting party. C\ WIN DOWS\apsdoc\nettemp\6056\$ASQpdf822369. DOC LIBRARY SERVICES: Overdue/lost materials fees: Children's books, paperbacks, periodicals, CDs and DVDs Adult materials books, paperbacks, periodicals, CDs, DVDs Lost or damaged materials Lost library card Damaged library materials Lost library materials Printed or copied materials: Black and white Color Faxing services: Within the United States International C\ WIN DOWS\apsdoc\nettemp\6056\$ASQpdf822369. DOC $0.10 per day overdue $0.25 per day overdue $1.00 per replacement Cost to repair or replace Cost to replace plus $10.00 for cataloged materials $0.15 per page $0.75 per page $1.00 per page $3.00 per page ITEM NO. 24 Approvals City Attorney Director of Finance City Manager ~<" 1//2 F CITY OF TEMECULA AGENDA REPORT TO: City Manager/City Council FROM: Herman D. Parker, Director of Community Services DATE: November 14, 2006 SUBJECT: Library Operating Agreement PREPARED BY: Phyllis L. Ruse, Deputy Director of Community Services RECOMMENDATION: That the City Council approve an operating agreement, in its substantial form, with the Riverside County Library System for the operations of the Temecula Public Library. BACKGROUND: The construction of the Temecula Public Library is nearing completion and it is anticipated that the facility will be open before the end of this calendar year. An integral component of the City's grant application for state bond matching funds was a cooperative joint use agreement between the Temecula Valley Unified School District, the Riverside County Library System (RCLS) and the City of Temecula. That agreement outlined a plan whereby the RCLS will provide library patron staffing, library systems automation, partial operations funding, and other services at the library. The City will own the facility and provide equipment, furnishings, facility maintenance, partial operations funding and other services. The City will also provide full time on- site technology support. The joint use agreement provided a broad outline of the responsibilities of each party. Now that the facility is nearing completion and services will begin to be provided, it is time to more closely define the roles and responsibilities of the partners. The proposed operating agreement between the City and RCLS provides clear direction in many critical areas of operation. Some of the major areas of responsibility addressed are: o Financial contributions of the parties o Collections development o Staffing o Technology support o Special programs and services o Hours of operations o Facilities use o Ownership issues o On-going maintenance responsibilities Staff has met with RCLS representatives to discuss and negotiate the components of the agreement. Through those negotiations, the City will own all collections and furniture, fixtures and equipment in the facility. The City will provide all facility, landscape and equipment maintenance, repair and replacement and technology support. The library will be open 60 hours per week; Monday through Thursday 10:00 a.m. to 9:00 p.m.; Friday 10:00 a.m. to 6:00 p.m.; and Saturday and Sunday 1 :00 to 5:00 p.m. All library staffing will be provided by RCLS through their separate agreement with Library Systems and Services, Inc. (LSSI). LSSI will also provide ongoing collections development and special programming of the facility. RCLS shall continue to maintain and operate the existing County branch library within Temecula at slightly reduced hours. While the RCLS operates several libraries that are housed in City-owned buildings, they are operated as and considered to be branch libraries of the county library system. The Temecula Public Library will be unique in that it will be a City library operated by RCLS. The City will partner fully with the RCLS in all key elements of the operations of the library. RCLS has been responsible for the effective operations of the County's library system for many years. It has the expertise and highly qualified library staff resources to successfully operate a state- of-the-art library. The City has expertise in the development and support of cutting edge technology, programming, and facilities maintenance and operations. It is anticipated that, as partners, the County and City will be able to provide superior services and programs to our citizens at the Temecula Public Library. The agreement provides for a contribution from the City in an amount not exceed $1,000,000 per year in support of the operations of the Temecula Public Library. Since the library in opening about half way through the fiscal year, payment for first year operations has been pro rated. The pro rated amount reflects the fact that new library staff has been hired and trained prior to the grand opening of the facility. The new staff has been and continues to be employed in purchasing, cataloging and shelving of collections, stocking supplies, and readying the library for its opening. It is anticipated that the City's contribution in fiscal year 2006/07 will be $700,000. FISCAL IMPACT: The City will contribute up to $1 ,000,000 in support of the operations of the Temecula Public Library. To the extent collected, the City's library tax credit revenue will be use to help offset this contribution. The City will also provide maintenance of the facility, grounds and patron technology systems. Maintenance and technology costs are estimated to be $735,000 annually. The RCLS will provide all additional funding necessary for library operations for both the Temecula Public Library and the County branch library within the City limits. ATTACHMENTS: Operating Agreement AGREEMENT FOR LIBRARY OPERATIONS SERVICES AT THE TEMECULA PUBLIC LIBRARY BETWEEN THE CITY OF TEMECULA AND THE COUNTY OF RIVERSIDE THIS AGREEMENT is made and effective as of November 14,2006, between the City of Temecula, a municipal corporation ("City") and the County of Riverside ("County"). In consideration of the mutual covenants and conditions set forth herein, the parties agree as follows: 1. TERM. This Agreement shall commence on November 14, 2006, and shall remain and continue in effect until tasks described herein are completed, but in no event later than June 30, 2011 unless sooner terminated pursuant to the provisions of this Agreement. The City reserves the option to extend the Agreement under the same terms and conditions for a maximum of two (2) additional two-year terms. 2. SERVICES. County shall perform the services and tasks described and set forth in Exhibit A, attached hereto and incorporated herein as though set forth in full. County shall complete the tasks according to the schedule of performance which is also set forth in Exhibit A. 3. PERFORMANCE. County shall at all times faithfully, competently and to the best of its ability, experience, and talent, perform all tasks described herein. County shall employ, at a minimum, generally accepted standards and practices utilized by persons engaged in providing similar services as are required of County hereunder in meeting its obligations under this Agreement. 4. PAYMENT. a. City agrees to pay County on a semi-annual basis. Total payment to County shall not exceed one million dollars ($1,000,000) per fiscal year from July 1 through June 30 of the Agreement unless additional payment is approved as provided in this Agreement. Notwithstanding the foregoing, the amount City agrees to pay County for the first partial fiscal year shall not exceed seven hundred thousand dollars ($700,000) for the period from December 14, 2006 through June 30, 2007. b. County shall not be compensated for any services rendered in connection with its performance of this Agreement which are in addition to those set forth herein, unless such additional services are authorized in advance and in writing by the City Manager. County shall be compensated for any additional services in the amounts and in the manner as agreed to by City Manager and County at the time City's written authorization is given to County for the performance of said services. c. County shall submit invoices on a semi-annual basis for actual services performed. Semi-annual periods shall be July 1 through December 31 and January 1 through June 30 of each fiscal year. Invoices shall be submitted within thirty (30) days of the close of a semi- annual billing period. Payment shall be made within thirty (30) days of receipt of each invoice as to all non-disputed fees. Payment shall represent City's total cash contribution to County for the operations of the Temecula Public Library. If City disputes any of County's fees it shall give written notice to County within 30 days of receipt of an invoice of any disputed fees set forth on the invoice. d. The City Manager may approve additional work up to ten percent (10%) ofthe amount of this Agreement but in no event shall the total sum of this Agreement exceed $1,000,000 annually orthe amount approved by City Council. Any additional work in excess of this amount shall be approved by the City Council. 5. SUSPENSION OR TERMINATION OF AGREEMENT WITHOUT CAUSE. a. City may at any time, for any reason, with or without cause, suspend or terminate this Agreement, or any portion hereof, by serving upon County at least thirty (30) days prior written notice. Upon receipt of said notice, County shall immediately cease all work under this Agreement, unless the notice provides otherwise. If 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, City shall pay to County the actual value of the work performed up to the time of termination, provided that the work performed is of value to City. Upon termination of this Agreement pursuant to this Section, County shall submit an invoice to City pursuant to Section 4. 6. DEFAULT OF COUNTY. a. County's failure to comply with the prOVIsions of this Agreement shall constitute a default. In the event that County is in default for cause under the terms of this Agreement, City shall have no obligation or duty to continue compensating County for any work performed after the date of default and can terminate this Agreement immediately by written notice to County. If such failure by County to make progress in the performance of work hereunder arises out of causes beyond County's control, and without fault or negligence of County, it shall not be considered a default. b. If the City Manager or his delegate determines that County is in default in the performance of any of the terms or conditions of this Agreement, it shall serve County with written notice of the default. County 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 County fails to cure its default within such period of time, City shall have the right, notwithstanding any other provision of this 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. 7. OWNERSHIP OF DOCUMENTS. a. County shall maintain complete and accurate records with respect to sales, costs, expenses, receipts and other such information required by City that relate to the performance of services under this Agreement. County 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 identified and readily accessible. County 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 there from 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 ofthree (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 containing data generated for the work, 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 City and may be used, reused or otherwise disposed of by City without the permission of County. With respect to computer files containing data generated for the work, County shall make available to City, upon Temecula Library Operations Agreement 06 2 reasonable written request by City, the necessary computer software and hardware for purposes of accessing, compiling, transferring and printing computer files. 8. INDEMNIFICATION. a. City agrees to defend, indemnify, protect and hold harmless County, its officers, officials, employees and volunteers from and against any and all claims, demands, losses, defense costs or expenses, or liability of any kind or nature which County, its officers, agents and employees may sustain or incur or which may be imposed upon them for injury to or death of persons, or damage to property arising out of City's negligent or wrongful acts or omissions in performing or failing to perform under the terms of this Agreement, or which may arise from the ownership of the Property, excepting only liability arising out of the negligence of County. b. County agrees to defend, indemnify, protect and hold harmless City, its officers, officials, employees and volunteers from and against any and all claims, demands, losses, defense costs or expenses, or liability of any kind or nature which City, its officers, agents and employees may sustain or incur or which may be imposed upon them for injury to or death of persons, or damage to property arising out of County's negligent or wrongful acts or omissions in performing or failing to perform under the terms of this Agreement, excepting only liability arising out of the negligence of City. 9. INDEPENDENT CONTRACTOR. a. County is and shall at all times remain as to City a wholly independent contractor. County's personnel performing the services under this Agreement on behalf of County shall at all times be under County's exclusive direction and control. Neither City nor any of its officers, employees, agents, or volunteers shall have control over the conduct of County or any of County's officers, employees, or agents except as set forth in this Agreement. County 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 City. County shall not incur or have the power to incur any debt, obligation or liability whatsoever against City, or bind City in any manner. b. No employee benefits shall be available to County in connection with the performance of this Agreement. Except for the fees paid to County as provided in this Agreement, City shall not pay salaries, wages, or other compensation to County for performing services hereunder for City. City shall not be liable for compensation or indemnification to County for injury or sickness arising out of performing services hereunder. 10. LEGAL RESPONSIBILITIES. County shall keep itself informed of all local, state and federal ordinances, laws and regulations which in any manner affect those employed byit or in any way affect the performance of its service pursuant to this Agreement. County shall at all times observe and comply with all such ordinances, laws and regulations. City, and its officers and employees, shall not be liable at law or in equity occasioned by failure of County to comply with this section. 11. RELEASE OF INFORMATION. a. All information gained by County in performance of this Agreement shall be considered confidential and shall not be released by County without City's prior written authorization. County, its officers, employees, agents or subcontractors, shall not, without written authorization from the City Manager, or unless requested by the City Attorney, voluntarily provide declarations, letters of support, testimony at depositions, response to interrogatories or other information concerning the work performed under this Agreement or relating to any project or property located Temecula Library Operations Agreement 06 3 within City. Response to a subpoena or court order shall not be considered "voluntary" provided County gives City notice of such court order or subpoena. b. County shall promptly notify City should County, its officers, employees, agents or subcontractors be served with any summons, complaint, subpoena, notice of deposition, request for documents, interrogatories, request for admissions or other discovery request, court order or subpoena from any party regarding this Agreement and the work performed there under or with respect to any project or property located within City. City retains the right, but has no obligation, to represent County and/or be present at any deposition, hearing or similar proceeding. County agrees to cooperate fully with City and to provide City with the opportunity to review any response to discovery requests provided by County. However, City's right to review any such response does not imply or mean the right by City to control, direct, or rewrite said response. 12. 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 (Hi) mailing in the United States Mail, certified mail, postage prepaid, return 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. Notice shall be effective upon delivery to the addresses specified below or on the third business day following deposit with the document delivery service or United States Mail as provided above. To City: City ofTemecula Mailing Address: P.O. Box 9033 Temecula, California 92589-9033 43200 Business Park Drive Temecula, California 92590 Attention: City Manager To County: County of Riverside 4080 Lemon Street 4th Floor Riverside, California 92501 Attention: County Librarian 13. ASSIGNMENT. County shall not assign the performance of this Agreement, nor any part thereof, nor any monies due hereunder, without prior written consent of City. Upon termination of this Agreement, County's sole compensation shall be payment for actual services performed up to, and including, the date of termination or as'may be otherwise agreed to in writing between the City Council and County. 14. LICENSES. At all times during the term ofthis Agreement, County shall have in full force and effect, all licenses required of it by law for the performance of the services described in this Agreement. 15. GOVERNING LAW. City and County understand and agree that the laws of the State of California shall govern the rights, obligations, duties and liabilities of the parties to this Agreement and also govern the interpretation of this 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 such litigation is filed by one party against the other to enforce its rights under this Agreement, Temecula Library Operations Agreement 06 4 the prevailing party, as determined by the COurt's judgment, shall be entitled to reasonable attorney fees and litigation expenses for the relief granted. 16. PROHIBITED INTEREST. No officer, or employee of the City of Temecula shall have any financial interest, direct or indirect, in this Agreement, the proceeds thereof, the Contractor, or Contractor's sub-contractors for this project, during his/her tenure or for one year thereafter. The Contractor hereby warrants and represents to City that no officer or employee of the City of Temecula has any interest, whether contractual, non-contractual, financial or otherwise, in this transaction, or in the business of the Contractor or Contractor's sub-contractors on this project. Contractor further agrees to notify City in the event any such interest is discovered whether or not such interest is prohibited by law or this Agreement. 17. ENTIRE AGREEMENT. This Agreement contains the entire understanding between the parties relating to the obligations of the parties described 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 independent investigation of any and all facts such party deems material. 18. AUTHORITY TO EXECUTE THIS AGREEMENT. The person or persons executing this Agreement on behalf of County warrants and represents that he or she has the authority to execute this Agreement on behalf of County and has the authority to bind County to the performance of its obligations hereunder. 19. NO THIRD PARTY BENEFICIARIES. No person or entity shall be deemed to be a third party beneficiary hereof, and nothing in this Agreement (either expressed or implied) is intended to confer upon any person or entity, other than County, City, and their respective successors and assigns, any rights, remedies, obligations or liabilities under or by reason of this Agreement. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed the day and year first above written. CITY OF TEMECULA COUNTY OF RIVERSIDE By: Ron Roberts, Mayor By: Chair, Board of Supervisors Attest: By: Susan W. Jones, MMC, City Clerk Attest: Clerk to the Board of Supervisors APPROVED AS TO FORM: By: Deputy APPROVED AS TO FORM: By: PeterM. Thorson, City Attorney JOE S. RANK County Counsel By: Deputy County Counsel LIBRARY SYSTEMS AND SERVICES, LCC Temecula Library Operations Agreement 06 . 5 By: Mark Smith, Library Administrator Temecula Library Operations Agreement 06 6 EXHIBIT A SERVICES AND TASKS TO BE PERFORMED All the following services, duties and tasks described in this Exhibit A shall be performed with regard to the Temecula Public Library, located at 30600 Pauba Road, Temecula, CA 92592. 1. STAFFING. A. Library Staff. County shall provide an adequate number of professional library staff persons for the efficient and effective operations of the Temecula Public Library. County shall have the authority to hire the Temecula Public Library staff. City and County may review and alter the number and classification of staff persons from time to time for the effective operation of the Temecula Public Library. In the event that City is dissatisfied with the performance of a library staff employee, City and County shall work together to resolve the matter in a manner that is mutually acceptable. County currently provides library staff and library services through a separate agreement with Library Systems and Services, Inc. (LSSI). City acknowledges and agrees that staff and other services shall be provided to the Temecula Public Library through the County's agreement with LSSI. B. Technology Homework Center. County shall provide a three-tenths (0.3) full-time equivalent employee to provide assistance in the Technology Homework Center. The Technology Homework Center's employee(s) shall be classified as referenced in the Joint Use Cooperative Agreement between the County of Riverside, the Temecula Valley Unified School District ("TVUSD") and the City ofTemecula for the Joint Use of Facilities Located at the Temecula Public Library, dated March 18, 2003. County shall work with the TVUSD and City to provide, as necessary, additional employees, volunteers and resources for students in the Technology Homework Center. C. Technology Systems. City shall provide adequate staff persons to maintain and operate the technology systems, including, but not limited to, computers, Radio Frequency Identification ("RFID") equipment and systems, copiers, telephones, wireless networks, and teleconference equipment. D. Maintenance. City shall provide adequate staff persons to provide janitorial services, landscape maintenance and building maintenance for the Temecula Public Library. 2. OPERATING HOURS. The Temecula Public Library shall operate at least sixty (60) hours per week. The days and hours of operations shall be as follows: Monday - Thursday Friday Saturday and Sunday 10:00 a.m. to 9:00 p.m. 10:00 a.m. to 6:00 p.m. 1 :00 p.m. to 5:00 p.m. The T emecula Public Library shall observe City's holiday schedule, except that the T emecula Public Library shall be closed on Columbus Day. . Temecula Library. Operations Agreement 06 7 3. SECURITY SYSTEMS. A. Key Cards. City shall administer proximity key cards that provide door access and support various levels of security to the Temecula Public Library. These key cards shall be issued by City's Information Systems ("IS") Department. B. Radio Frequency Identification. City shall maintain and support a Radio Frequency Identification ("RFID") system, which is the Temecula Public Library's book security and inventory system. 4. TECHNOLOGY SERVICES. A. Patron LAN and Wireless LAN. City's IS Department shall equip, maintain and support the Patron Local Area Network ("LAN") and the Wireless LAN. B. Administrative LAN. The Administrative LAN shall be equipped by City, but maintained and supported by Library Systems and Services, Incorporated (LSSI). C. Firewall Separation. City shall maintain firewall separation of the Patron LAN, Wireless LAN and Administrative LAN. 5. AUTHENTICATION SERVICES. A. Wireless Authentication. City shall provide wireless authentication consistent with other automated systems within the library. B. Library Patron Authentication. Library patrons shall be authenticated by the Comprise Smart Access Management ("Comprise SAM") System or comparable system. The Temecula Library system shall enable patrons to easily manage their accounts, including adding funds with a credit card through the Internet, at a library kiosk, orthrough a Temecula Public Library librarian or cashier. 6. COMMERCIAL CARRIER SERVICES. A. T -3 Circuit. The Temecula Public Library shall access the Internet with a T-3 circuit. The T-3 circuit shall support the Wireless LAN and the Patron LAN. . B. Frame Relay Circuit. The Administrative LAN shall be supported by an LSSI provisioned Frame Relay Circuit. 7. VOICEMAIL SERVICES. City shall provide and support voicemail accounts and respond to the Temecula Public Library Branch Manager's request for any telephone additions or changes to users in the Voice over Internet Phone ("VOIP") system. The Temecula Public Library telephones shall be answered by a live library staff member or system approved by City during the Temecula Public Library's operational hours. t Temecula Library Operations Agreement 06 8 8. LICENSING SERVICES. A. Patron LAN and Wireless LAN. Microsoft, Cisco and other software license products shall be purchased, updated, and maintained by City when used on either the Patron LAN orthe Wireless LAN. B. Administrative LAN. Software license products shall be purchased and maintained by LSSI on the Administrative LAN. 9. INTERNET SERVICES. City shall maintain and support the Temecula Public Library's Internet domain temeculalibrarv.orQ. Internet usage at the Temecula Public Library shall be in compliance with City's proposed Internet Usage Policy. Content filtering shall be supported by a Children's Internet Protection Act ("CIPA") compliant content filtering system. 10. OPENING DAY COLLECTIONS. A. Expenditures for Opening Day Collections. County shall expend a total of $1,250,000 for the new materials collections for the opening day of the Temecula Public Library ("Opening Day Collections") at the Temecula Public Library. City shall provide $250,000 to County for the procurement of the Opening Day Collections and County shall fund the remaining $1,000,000 for the Opening Day Collections. B. Invoices of Opening Day Collections. Upon City's request, County shall provide copies of invoices to City evidencing the total value of the Opening Day Collections. Invoicing shall include the cost of the volume and all processing by County's third party procurement company. County's processing fee for Opening Day Collections shall be applied ata rate of five percent (5%) of the discounted per volume cost charged by the third party procurement company. C. Provision of Used Volumes. County shall provide approximately 30,000 used volumes from the existing Temecula branch County library in addition to the Opening Day Collections. All materials provided to the Temecula Public Library shall be the property of City. 11. ON-GOING COLLECTIONS DEVELOPMENT. A. Annual Collections Development. County shall provide collections development for the Temecula Public Library on an annual basis. B. Invoicing Required. County shall provide copies of invoices to City evidencing the total value of the volumes purchased for the Temecula Public Library collection. Invoicing shall include the cost of the volume and all processing by County's third party procurement company. Invoices shall be submitted as collection materials are received and inventoried to the collection. C. Processing Fees. County's processing fee for collection development procured through the use of County Development Impact Fees shall be five dollars ($5.00) per item. The County's processing fee for collection development procured through the use of fund from the City of Temecula, as provided in Section 4 in the Agreement, shall be 5% of the discounted cost of the items. Temecula Library Operations Agreement 06 9 D. Collections Maintenance. County shall provide maintenance of the T emecula Public Library's collections consistent with professional library practices. This shall include, but not be limited to, procurement, processing, mending and de-accessioning of the collections. The Temecula Public Library's collections shall be developed in accordance with the materials selection policy adopted by the Riverside County Board of Supervisors. 12. FURNITURE. FIXTURES AND EQUIPMENT. A. Ownership by City. City shall own all furniture, fixtures, and equipment in the Temecula Public Library, except for the LSSI equipment that support the following: i. Frame Relay; ii. SIP2 protocol equipment; iii. Microsoft Windows servers that support Domain Naming System (DNS); and, iv. The domain controller for caching administrative staff authentication credentials. B. Maintenance by City. City shall be responsible for the maintenance, repair and replacement of the furniture, fixtures and equipment, except for the LSSI equipment, as necessary and determined by City. C. Maintenance by County. County shall be responsible for the maintenance, repair and replacement of the LSSI equipment used for supporting LSSI staff functions. 13. UTILITIES. All utilities shall be recorded in City's name. City shall be responsible for the payment of all utilities costs, including electricity, gas, water, and telephone services, associated with the operations ofthe Temecula Public Library. 14. FEES AND FINES. A. City Property. All fees and fines shall be the property of City. Fees and fines for overdue, lost or damaged materials, printing and copying services and facilities and equipment rentals shall be consistent with City fee schedules. Upon request by County and accompanied by appropriate documentation, City shall remit to County the fines for lost and damaged materials. County shall use said funds to replace lost and damaged materials in the City's collections. Any fines collected by the Temecula Public Library for collections belonging to another library may be used by County to replace that library's materials. County shall maintain a system that clearly delineates the original ownership of the lost or damaged materials. County shall request the fines for lost and damaged materials not less than once per fiscal year and not more frequently that once per calendar month. B. Collection of Fees and Fines. Fees and fines shall be collected by LSSI staff. County shall remit all fees and fines to City for reconciling documentation purposes. C. Software for Fees and Fines. City shall provide and maintain software consistent with other City systems for the receipting and reconciling of fees and fines. Temecula Library Operations Agreement 06 10 E. Fees for Printing. City shall determine the fees for printing and copying. 15. FACILITY RENTALS. A. Development of Rental Policy. City shall develop a Temecula Public Library facilities rental policy ("Rental Policy") that includes, but is not limited to, information regarding the areas within the Temecula Public Library available for rental purposes, the equipment available for rental, the rental fees, and the reservation procedures. The Rental Policy shall also set forth which library patrons receive priority for rental areas. B. Administration of Rental Policy. County shall administer City's Rental Policy, assist in the preparation of the rental areas, including but not limited to setting up and taking down tables and chairs, collecting required deposits, rental forms, proof of insurance, and other required documentation, and remit any rental-related documentation to City. County shall remit all rental fees to City on a daily basis with reconciling documentation. C. Rental Fee Software. City shall provide and maintain software consistent with other City systems for the receipting and reconciling of rental fees. 16. TECHNOLOGY HOMEWORK CENTER. City shall determine and schedule any computer classes provided in the Technology Homework Center other than those provided by the T emecula Valley Unified School District. City shall work with County to ensure that such scheduling of computer classes does not conflict with other programs or staffing needs. Classes may be provided by contracted instructors, library staff or City staff. 17. LIBRARY MATERIALS DISTRIBUTION TO SCHOOL DISTRICT. A. TVUSD Distribution Site. County shall add the Temecula Valley Unified School District ("TVUSD") as a daily distribution site for library materials requested by students or TVUSD staff through the Internet. B. Distribution System. County shall develop a distribution system with the TVUSD to check-out, check-in, and account for all library materials distributed through this distribution system. County shall work with the TVUSD Library Media Specialist to develop a check-out and check-in process at the TVUSD that is integrated with the County system to track the distribution of and protect the T emecula Public Library's collections: 18. WIRELESS TELEPHONE USAGE. County staff persons shall. enforce the following policy regarding wireless telephone usage at the Temecula Public Library. Wireless telephone usage shall be limited to the following specific areas within and around the TemeculaPublic Library: . Inspiration Garden . Front courtyard . Parking lot . Staff offices and staff lounge . Study rooms Temecula Library Operations Agreement 06 11 19. FOOD AND BEVERAGES. A. Concessions. City may operate a concessions cart within the Temecula Public Library. All revenues and expenditures associated with the concessions cart shall be City's responsibility. B. Designated Areas for Food Consumption. City may permit food and beverages to be consumed in all Temecula Public Library common areas, staff offices, staff lounge, and the garden. 20. LIBRARY TAX CREDIT. City's Library Tax Credit shall be used to offset County library services for both the Temecula Public Library and the County branch library located at 41000 County Center Drive in Temecula. Temecula Library Operations Agreement 06 12 ITEM NO. 25 Approvals City Attorney Director of Finance City Manager ~ /J!l- !fr- CITY OF TEMECULA AGENDA REPORT TO: City Manager/City Council FROM: Tim Thorson, Information Systems Director DATE: November 14, 2006 SUBJECT: Two Year Cell Phone Contract Renewal with Sprint RECOMMENDATION: That the City Council approve a two-year agreement with Sprint forthe renewal of City Cellular Services. BACKGROUND: The current two year contract with Sprint expired on 18 October 2006. The attached renewal reflects State of California Contract #1 S-05-58-01 , which in every category is either equal or less than the current agreement. The benefits of renewing the Sprint contract are significant in both cost savings and disruption to emergency services relying on wireless connections to City hall. The Sprint service plan is broken down in the following comparison matrix: Plan Sprint (current plan) Sprint PCS (Renewal) Any Time 1100 Minutes = $65.00 1000 Minutes = $49.00 Minutes Shared $5.00/phone No cost. Included in the Minutes plan Push-to- $20.00 - Ready Link $5.00 - Ready Link Talk PCS $15.00 -Internet access $12.00 -Internet access Vision Data $70.00 - Unlimited $49.99 - Unlimited Cards Service $150.00 $150.00 Credit This competitively quoted price is provided by an authorized government contract. Under this agreement it is within the City's discretion to take advantage of the pricing on another governmental entity contract. The contract is made available for use by State of California agencies and any city, county or local governmental agency empowered to expend public funds. Therefore, this purchase is exemptfrom competitive bidding requirements. Staff's research has determined thatthe State of California price is the most competitive. Also, it has been determined thatthis program is consistent with the City's procurement policies and regulations and that it is used by many cities as an industry standard. FISCAL IMPACT: Adequate funds were appropriated in the 2006-07 Fiscal Year Budget. ATTACHMENTS: California State Wireless Service Agreement WIRELESS SERVICE AGREEMENT BETWEEN CITY OF TEMECULAAND SPRINT-NEXTEL OF CALIFORNIA, INC. THIS AGREEMENT is made this 14'h day of November, 2006 by and between Sprint Nextel of California, Inc., d/b/a Sprint, a Delaware corporation with an office at 2001 Edmund Halley Drive, Reston, Virginia 20191, on behalf of itself and its affiliates and subsidiaries (hereinafter "Contractor'') and the City of Temecula located at 43200 Business Park Drive, Temecula, CA 92590 (hereinafter the "City"). Contractor and the City are referred to herein individually as a "Party" or collectively as the "Parties." ATTACHMENTS This Agreement is comprised of this document (hereinafter the "Agreement'') and the California Wireless Services Contract, Contract No. IS-05-58-01, which shall be incorporated by reference as if included herein. RECITALS WHEREAS, Contractor owns and/or operates systems to provide wireless telecommunications (the "System(s)"), together with affiliated companies as a nationwide network, in certain geographic areas throughout the United States, and provide access to such Systems and cellular phone services, which means wireless business communications services, including voice services, information or other enhanced services("Services"); and products, which includes iDEN and CDMA equipment, hardware, software and other materials sold by Contractor (collectively, the "Equipment''); and WHEREAS, the City of Temecula is requesting such Equipment and Services which include, but are not limited to, wireless calling, Direct Connect@ walkie-talkie services, Nationwide Direct Connect@ walkie-talkie services, Group Connect@ walkie-talkie services, "Wireless Data Services" (including, but not limited to, wireless web services, email services, text messaging, multimedia messaging, and other mobile messaging services), and other related Services. AGREEMENT NOW THEREFORE, in consideration of the mutual covenants contained herein and for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties agree as follows: 1. Term. The term of this Agreement shall be effective upon execution by both Parties and, unless sooner terminated as provided herein, shall expire on October 15, 2008 ("Term''). The Term may be extended upon the written agreement of the Parties, for up to four (4Lconsecutive one-year periods. The City may terminate this Agreement on the same grounds and under the same conditions as provided to the State of California pursuant to its Contract No. IS-05-58-0 1, and any and all terms and conditions incorporated by reference therein (hereinafter the "CWC''). Such grounds for termination include, but are not limited to, termination for non-appropriation of funds. If terminated for non-appropriation of funds, the City shall return all deliverables in substantially the same condition in which delivered to the City, subject to normal wear and tear. As provided in the CWC, the City shall pay for all packing and transportation to Contractor's nearest facility, but shall have no further obligation to Contractor. 1 2. Contract Vehicle. The City of Temecula will be purchasing Equipment and Service under the CWC and will be subject to the same terms and conditions therein as are applicable to the State of California, to the extent the context permits or requires. In the event the CWC expires prior to the end of the Term set forth herein, and provided the City is in compliance with all terms and conditions of the Agreement at that time, Contractor will, at the City's request, continue to provide Service and Equipment to the City and honor the terms and conditions of this Agreement for the Term set forth herein. 3. Severabilitv. Any portion of this Agreement that may be deemed to be unenforceable or illegal shall not affect the enforceability or legality of the remaining terms and conditions. 4. Applicable Law. The validity, performance, and construction of this Agreement will be governed and interpreted in accordance with the laws of the State of California, without giving effect to conflict of law principles. 5. Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be an original, but all of which together shall constitute one instrument. Execution and delivery of this Agreement by exchange of facsimile copies bearing the facsimile signature of a Party hereto shall constitute a valid and binding execution and delivery of this Agreement by such Party. Such facsimile copies shall constitute enforceable original documents. Notwithstanding the foregoing, the Parties to this Agreement shall use commercially reasonable efforts to exchange signed original documents after facsimile execution of this Agreement. IN WITNESS WHEREOF, the Parties have executed this Agreement on the date first above written. Sprint-Nextel of California, Inc. City of Temecula By: By: Name: Ron Roberts Title: Mayor November 14, 2006 Date: ATTEST: By: Susan W. Jones, MMC Approved as to form: By: Peter M. Thorson, City Attorney 2 ~ . 6.~~~gG~t~~U.W~~f !~PHH>Hn! H: ,!,~",H"~~~~iJ' a " ~lt~~pn"lln . ~ ~ p 4 ~ ~4 d'. ~ . "<'!,di~Ii'o~~ .. l' U{" '~~n ~r i[,B~iHiH[~ a PI E, .>.~,.! . '~'i ~ ~ii[~li,!iI['!'il ~!;lla~il~'IIII=. i!~HiJbHlhJn fqHJHiii'~,piJi ~H~,l~p I, ~~ fjH ',i!~i i t, i, '. H!Hi~ ~I h iHiin II I[ Hh~l .~ h iJiH[ ~! '. 'i1ai' ~1 B ~H;li q -l~ ifli~~ t . "}' . . 1 ~!' ~ j' ~iH~ I -ii, llll~r i i d, h ~ I ~',>" i .~ ih.~ ~ rl 'I~ I~ I " J,~~ II ! · ~JI ~ ' · . 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Y!.~-' v CITY OF TEMECULA AGENDA REPORT TO: City Manager/City Council FROM: Grant Yates, Assistant to the City Manager DATE: November 14, 2006 SUBJECT: Community Grant Agreement with the Temecula Sister City Association Prepared by: Robin Gilliland, Museum Services Manager RECOMMENDATION: That the City Council approve a grant in the amount of $7,500.00 for the Temecula Sister City Association for fiscal year 2006-2007. BACKGROUND: The Temecula Sister Cities Association (TSCA) is a California non-profit corporation that supports cultural exchanges of people and ideas between the citizens of our community and foreign communities. In doing so, the outlook of our citizens is enhanced and Temecula's quality of life improved. The following is a list of guidelines to assist City Administration in their liaison relationship with the Temecula Sister City Association and Sister City sponsored activities. o The City will work in conjunction with the TSCA to promote understanding, friendship and knowledge. o The Temecula Sister City Association is responsible for the development, coordination and implementation of all Sister City functions, services and special events that occur related to our two Sister Cities: Leidschendam-Voorburg, Netherlands and Nakayama, Japan. This includes coordination of events, special dinners and activities, and travel related services such as gifts, itineraries for visiting dignitaries or travel abroad. o The City will support and encourage the Temecula Sister City program in their efforts to encourage cultural exchange among our Sister Cities. The City will provide a staff liaison that will represent the City of Temecula at Sister City Board Meetings, programs, special events and activities (as deemed appropriate). o The City liaison will coordinate travel abroad to our Sister Cities when City officials or City Council members are involved in the travel. D The City will provide the Temecula Sister City Association with limited funding to provide necessary Sister City activities and functions. The Temecula Sister City Organization C:\WI N DOWSlapsdoc"'ettemp\2572\$ASQpdf822866, docl will be responsible for monitoring and managing their budget to ensure proper expenditures and accounting of funds for all organized activities and events. D The City will provide limited financial support for student scholarships for individual students traveling to Nakayama, Japan or Leidschendam-Voorburg, the Netherlands. D The City will fund & coordinate one official dinner and one official welcome reception per year, for a visiting delegation from Nakayama and Leidschendam-Voorburg, when elected officials from the visiting Sister City are in attendance. D The City will provide official City gifts for elected officials visiting from Nakayama and Voorburg, or when City officials are traveling to Nakayama and Leidschendam-Voorburg. D Membership in the Sister City Association is open to all citizens and or business persons of Temecula & others as determined by the TSCA. D The TSCA must provide an annual budget and financial report/records that are available for review by the City. D The City will provide transportation for official delegations both arriving and traveling abroad. D The TSCA is responsible for transportation of all other guests either coming or going to Nakayama, Japan & Leidschendam-Voorburg, the Netherlands. In the past, TSCA has used funds to provide educational opportunities such as the Children's Matsuri and Dutch American Heritage Day. There have also been sponsorships provided to both students and adults traveling abroad. TSCA has an active book exchange with Nakayama and for the first time, a toy drive for a Tecate, Mexico orphanage was done in December, 2004 FISCAL IMPACT: Funds have been approved and are in account 001-101-999-5280. C:\WI N DOWSlapsdoclnettemp\2572\$ASQpdf822866, docl 2 COMMUNITY GRANT AGREEMENT BETWEEN THE CITY OF TEMECULA AND THE TEMECULA SISTER CITY ASSOCIATION THIS AGREEMENT is made by and between the City of Temecula ("City"), a municipal corporation, and the Temecula Sister City Association, a non-profit corporation, and is dated November 14, 2006. In consideration of the mutual covenants and agreements contained herein, the parties agree as follows: I. This Agreement is made with respect to the following facts and purposes, which each of the parties hereto acknowledge and agree to be true and correct: a. The Temecula Sister City Association ("TSCA") coordinates many programs for cultural exchanges within the City of Temecula, which are not provided by the City's recreation program. b. The TSCA warrants and represents to the City that it is a non- profit, tax exempt corporation under the tax laws ofthe United State and California, and agrees to continue in such status during the term ofthis Agreement. c. On June 13, 2006, the City Council approved the budget for FY 06/07 which provides funding in the amount of seven thousand five-hundred dollars ($7,500.00) for the purpose of continuing and enhancing its cultural exchange programs within the City of Temecula and abroad. d. paid to the TSCA. This Agreement provides for the manner in which the grant will be 2. The City shall pay to the TSCA on an annual basis, on July I, 2006 an amount equal to the actual costs incurred by the TSCA not to exceed $7,500.00 per year ending June 30, 2007. TSCA shall submit a quarterly report to the Director of Community Services for the actual costs of cultural exchanges and shall be accompanied by such documentation as reasonably required by the Director of Finance to establish that such costs were incurred by the TSCA. 3. The term ofthis agreement shall be July I, 2006 to June 30, 2007. 4. forth in Exhibit A. The TSCA and City have developed goals and objectives which are set The TSCA is committed to implementing these Goals and Objectives. 5. The City may at any time, for any breach ofthis Agreement, suspend or terminate this Agreement, or any portion hereof, by serving upon the TSCA at least ten (10) days prior written notice. If the breach is corrected during this ten day period, City may, in its sole and exclusive discretion, rescind the termination. Ifthe City suspends or terminates a portion ofthis Agreement such suspension or termination shall not make void or invalidate the remainder of this Agreement. TSCA shall make available to the City its books, records and financial documents in such form as to allow City to verify TSCA's compliance with the terms ofthis Agreement. c:\ WINDOWS\apsdoc\nettemp\4260\$ASQpdf822867.doc 6. The TSCA agrees to defend, indemnify, protect and hold hannless the City, its officers, officials, and employees from and against any and all claims, demands, losses, defense costs or expenses, including attorney fees and expert witness fees, or liability of any kind or nature which the City, its officers, agents and employees may sustain or incur or which may be imposed upon them for injury to or death of persons, or damage to property arising out of TSCA's negligent or wrongful acts or omissions arising out of or in any way related to the performance or non-performance ofthis Agreement, excepting only liability attributable to the active negligence ofthe City. 7. TSCA shall procure and maintain, or shall have provided on its behalf, for the duration of fiscal year 2006-2007 insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance ofthe activities of the TSCA, its agents, representatives, or employees. a. Minimum Scope of Insurance. Coverage shall be at least as broad as: (I) Insurance Services Office Commercial General Liability form No. CG 0001 II 85 or 88, including a non-owned auto endorsement. b. Minimum Limits of Insurance. TSCA shall maintain limits on the policies described in Subsection a. of no less than the following amounts unless otherwise approved by the City Manager: (I) General Liability: One million dollars ($1,000,000) per occurrence for bodily injury, personal injury and property damage. c. Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions must be declared to and approved by the City Manager. d. Other Insurance Provisions. The general liability policies shall 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 ofthe TSCA; premises owned, occupied or used by the TSCA; or automobiles owned, leased, hired or borrowed by the TSCA. 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 Agreement, the TSCA'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 TSCA's insurance and shall not contribute with it. (3) Any failure to comply with reporting or other provisions ofthe policies including breaches of warranties shall not affect coverage provided to the City, its officers, officials, employees or volunteers. c:\ WINDOWS\apsdoc\nettemp\4260\$ASQpdf822867.doc (4) The TSCA'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, cancelled by either party, reduced in coverage or in limits except after thirty (30) days' prior written notice to the City by certified mail, return receipt requested, has been given to the City. e. Acceptabilitv of Insurers. 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. Self insurance shall not be considered to comply with these insurance requirements. f. Verification of Coverage. TSCA shall furnish 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 forms 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 TSCA's insurer may provide complete, certified copies of all required insurance policies, including endorsements effecting the coverage required by these specifications. 8. TSCA is and shall at all times remain as to the City and TCSD a wholly independent contractor. The personnel performing the services under this Agreement on behalf ofTSCA shall at all times be under TSCA's exclusive direction and control. Neither City nor any of its officers, employees or agents shall have control over the conduct of TSCA or any of TSCA's officers, employees or agents, except as set forth in this Agreement. TSCA 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. TSCA shall not incur or have the power to incur any debt, obligation or liability whatever against City, or bind City in any manner. 9. 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, return receipt requested, addressed to the address ofthe party as set forth below or at any other address as that party may later designate by Notice. Notice shall be effective upon delivery to the addresses specified below or on the third business day following deposit with the document delivery service or United States Mail as provided above. c:\ WINDOWS\apsdoc\nettemp\4260\$ASQpdf822867.doc To City: City of Temecula 43200 Business Park Drive P.O. Box 9033 Temecula, California 92589-9033 Attention: City Manager To TSCA: Temecula Sister City Association 41911 5th St. #300 Temecula, California 92590 Attention: Keri V ogtmann & Jon Lieberg Co-Chairmen 10. The TSCA shall not assign the performance ofthis Agreement, nor any part thereof, nor any monies due hereunder, without prior written consent ofthe City. 11. This Agreement contains the entire understanding between the parties relating to the obligations ofthe parties described 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. c:\ WINDOWS\apsdoc\nettemp\4260\$ASQpdf822867.doc IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed the day and year first above written. CITY OF TEMECULA Ronald Roberts, Mayor Attest: Susan Jones, CMC City Clerk Approved As to Form: Peter M. Thorson City Attorney c:\ WINDOWS\apsdoc\nettemp\4260\$ASQpdf822867.doc TEMECULA SISTER CITY ASSOCIATION, a California non-profit corporation By: Name: Title: By: Name: Title: c:\ WINDOWS\apsdoc\nettemp\4260\$ASQpdf822867.doc ITEM NO. 27 Approvals City Attorney Director of Finance City Manager ~ CITY OF TEMECULA AGENDA REPORT TO: City Manager/City Council FROM: Shawn Nelson, City Manager DATE: November 14, 2006 SUBJECT: Additional Authorized Position RECOMMENDATION: That the City Council approve the addition of one (1) Assistant City Manager position to the City's schedule of authorized positions. BACKGROUND: As a result of the recent retirements of key executive staff members, it is appropriate to analyze the overall organizational structure of the City. As a result, I am requesting the addition of one (1) Assistant City Manager position to the schedule of authorized positions. FISCAL IMPACT: The salary range forthis position is $121 ,339-$155,325. Most of the costs associated with this will be offset due to salary savings within the existing operating budget. Attachment: Schedule of Authorized Positions City of Temecula SCHEDULE OF AUTHORIZED POSITIONS FY 06/07 Authorized ExempU Count Minim urn Maximum NonExempt Buildin!! & Safetv ADMINISTRATIVE ASSIST ANT 1.00 $3,154 $4,037 NE BUILDING INSPECTOR II 7,00 $3,976 $5,090 NE BUILDING INSPECTOR III 1.00 $4,303 $5,509 NE COMMUNITY DEVELOPMENT TECH 3,00 $3,287 $4,209 NE COMMUNITY DEVELOPMENT TECH II 1.00 $3,617 $4,630 NE DEPUTY DIRECTOR, BLDG/SAFETY 1.00 $5,979 $7,654 E DIRECTOR, BUILDING & SAFETY 1.00 $7,475 $9,567 E OFFICE ASSIST ANT 1.00 $2,206 $2,823 NE OFFICE SPECIALIST 2,00 $2,379 $3,045 NE PLAN CHECKER/BLDG INSPECTOR 1.00 $4,303 $5,509 NE SENIOR BUILDING INSPECTOR 1.00 $4,743 $6,070 E SENIOR OFFICE SPECIALIST 1.00 $2,714 $3,474 NE Building & Safety Subtotals: 21.00 City Clerk ADMINISTRATIVE ASSIST ANT 1.00 $3,154 $4,037 NE CENTRAL SERVICES COORDINATOR 1.00 $2,706 $3,463 NE CITY CLERK/DIR OF SUPPORT SERV 1.00 $7,475 $9,567 E DEPUTY DIR OF SUPPORT SERVICES 1.00 $5,748 $7,359 E MINUTE CLERK 1.00 $3,154 $4,037 NE OFFICE ASSIST ANT 1.00 $2,206 $2,823 NE OFFICE ASSIST ANT - AM 0,50 $2,206 $2,823 NE OFFICE ASSIST ANT - PM 0,50 $2,206 $2,823 NE OFFICE SPECIALIST 2,00 $2,379 $3,045 NE SR RECORDS COORDINATOR 1.00 $3,327 $4,259 NE City Clerk Subtotals: 10.00 City Council COUNCILMEMBER 5,00 $0 $860 E City Council Subtotals: 5.00 City Mana!!erIHuman Resources ADMINISTRATIVE ASSIST ANT (CM) 1.00 $3,154 $4,037 NE ASSISTANT CITY MANAGER 1.00 $10,1 12 $12,944 E ASST TO CITY MNGR/HR DIRECTOR 1.00 $7,475 $9,567 E CITY MANAGER 1.00 $0 $18,1 13 E EXECUTIVE ASSISTANT 1.00 $4,167 $5,335 E HUMAN RESOURCES ANALYST 1.00 $4,586 $5,869 E MARKETING COORDINATOR 1.00 $5,043 $6,457 E OFFICE SPECIALIST - HR 1.00 $2,379 $3,045 NE SENIOR HR ANAL YST 1.00 $5,043 $6,457 E SENIOR MANAGEMENT ANALYST 1.00 $5,571 $7,132 E City Manager\Human Resources Subtotals: 10.00 Page I of 08/09/2006 4Updated on: City of Temecula SCHEDULE OF AUTHORIZED POSITIONS FY 06/07 Authorized ExempU Count Minim urn Maximum NonExempt Communitv Services ADMINISTRATIVE ASSIST ANT 1.00 $3,154 $4,037 NE AQUATICS SUPERVISOR 1.00 $3,909 $5,003 NE CULTURAL ARTS ADMINISTRATOR 1.00 $5,999 $7,681 E CUSTODIAN 3,00 $2,361 $3,022 NE DEPUTY DIR OF COMMUNITY SVCS 1.00 $7,151 $9,153 E DEVELOPMENT SVCS ADMINISTRATOR 1.00 $6,016 $7,701 E DIRECTOR OF COMMUNITY SERVICES 1.00 $8,926 $11,425 E FACILITY MAINTENANCE COORD. 1.00 $3,258 $4,169 NE LANDSCAPE INSPECTOR 2,00 $3,350 $4,285 NE LEAD MAINTENANCE WORKER 4,00 $3,306 $4,229 NE MAINTENANCE SUPERVISOR 1.00 $4,627 $5,922 E MAINTENANCE SUPT, - TCSD 1.00 $5,685 $7,276 E MAINTENANCE WORKER 4,00 $2,807 $3,594 NE MUSEUM SERVICES MANAGER 2,00 $4,018 $5,145 NE OFFICE SPECIALIST 3,00 $2,379 $3,045 NE PARK RANGER 1.00 $3,387 $4,336 NE PARK/LANDSCAPE MAINT SUPV 1.00 $4,627 $5,922 E PATRON SERVICES COORDINATOR 1.00 $3,350 $4,285 NE RECREATION COORDINATOR 1.00 $3,192 $4,085 NE RECREATION SUPERINTENDENT 1.00 $5,999 $7,681 E RECREATION SUPERVISOR 3,00 $3,909 $5,003 NE SENIOR LANDSCAPE INSPECTOR 1.00 $3,849 $4,928 NE SENIOR MANAGEMENT ANALYST 1.00 $5,571 $7,132 E SENIOR RECREATION COORDINATOR 1.00 $3,512 $4,493 NE THEATER TECHNICAL COORDINATOR 1.00 $3,350 $4,285 NE THEATER TECHNICAL SUPERVISOR 1.00 $3,512 $4,493 NE THEATRE MANAGER 1.00 $4,845 $6,203 E Community Services Subtotals: 41.00 Finance ACCOUNTANT 1.00 $4,059 $5,196 NE ACCOUNTING ASSISTANT 2,00 $2,625 $3,360 NE ACCOUNTING MANAGER 1.00 $5,571 $7,132 E ACCOUNTING SPECIALIST 3,00 $3,037 $3,885 NE ACCOUNTING SPECIALIST -PAYROLL 1.00 $3,037 $3,885 NE ADMINISTRATIVE ASSIST ANT 1.00 $3,154 $4,037 NE ASSISTANT DIRECTOR OF FINANCE 1.00 $7,087 $9,073 E BUSINESS LICENSE SPEC/CASHIER 1.00 $2,714 $3,474 NE DIRECTOR OF FINANCE 1.00 $8,926 $11,425 E FISCAL SERVICES MANAGER 1.00 $6,223 $7,967 E PURCHASING COORDINATOR 1.00 $3,037 $3,885 NE REVENUE MANAGER 1.00 $5,571 $7,132 E SENIOR DEBT ANALYST 1.00 $5,571 $7,132 E Finance Subtotals: 16.00 Page 2 of 08/09/2006 4Updated on: City of Temecula SCHEDULE OF AUTHORIZED POSITIONS FY 06/07 Authorized ExempU Count Minim urn Maximum NonExempt Fire ADMINISTRATIVE ASSIST ANT 1.00 $3,154 $4,037 NE OFFICE ASSIST ANT 1.00 $2,206 $2,823 NE OFFICE SPECIALIST 1.00 $2,379 $3,045 NE Fire Subtotals: 3.00 Information Systems ADMINISTRATIVE ASSIST ANT 1.00 $3,154 $4,037 NE DIRECTOR OF INFORMATION SYSTEM 1.00 $7,475 $9,567 E GIS ADMINISTRATOR 1.00 $5,151 $6,592 E GIS ANALYST 1.00 $3,922 $5,021 NE I.S, ADMINISTRATOR 2,00 $5,151 $6,592 E INFORMATION SYSTEMS SPECIALIST 1.00 $4,219 $5,401 NE SR GIS PROGRAMMER 1.00 $4,627 $5,922 NE SR I.S, SPECIALIST 2,00 $4,627 $5,922 NE WEB MASTER 1.00 $3,922 $5,021 NE Information Systems Subtotals: 11.00 Plannin!! ADMINISTRATIVE ASSIST ANT 1.00 $3,154 $4,037 NE ASSISTANT PLANNER 1.00 $4,081 $5,225 NE ASSOCIATE PLANNER 6,00 $4,628 $5,923 NE CODE ENFORCEMENT OFFICER 2,00 $3,810 $4,877 NE CODE ENFORCEMENT OFFICER II 2,00 $4,192 $5,365 NE DEPUTY CITY MANAGER 1.00 $10,006 $12,808 E DEVELOPMENT PROC. COORDINATOR 1.00 $4,193 $5,367 NE DIRECTOR OF PLANNING 1.00 $8,278 $10,596 E JUNIOR PLANNER 1.00 $3,401 $4,354 NE OFFICE ASSIST ANT 2,00 $2,206 $2,823 NE OFFICE SPECIALIST 1.00 $2,379 $3,045 NE PRINCIPAL PLANNER 2,00 $6,720 $8,603 E SENIOR OFFICE SPECIALIST 1.00 $2,714 $3,474 NE SENIOR PLANNER 2,00 $5,845 $7,482 E Planning Subtotals: 24.00 Police MANAGEMENT ANALYST 1.00 $5,043 $6,457 E Police Subtotals: 1.00 Page 3 of 08/09/2006 4Updated on: City of Temecula FY 06/07 SCHEDULE OF AUTHORIZED POSITIONS Authorized Count Public Works ADMINISTRATIVE ASSIST ANT 1.00 ASSESSMENT DISTRICT SPECIALIST 1.00 ASSISTANT ENGINEER 7,00 ASSISTANT SIGNAL TECHNICIAN 1.00 ASSOCIATE ENGINEER 10,00 CONSTRUCTION MANAGER 1.00 DEPUTY DIRECTOR PUBLIC WORKS 1.00 DIR OF PUB WORKS/CITY ENG 1.00 ENGINEERING TECHNICIAN 1.00 JUNIOR ENGINEER 1.00 LEAD MAINTENANCE WORKER 5,00 MAINTENANCE SUPERVISOR 2,00 MAINTENANCE SUPT, - PIW 1.00 MAINTENANCE WORKER 6,00 MANAGEMENT ANALYST 1.00 OFFICE ASSIST ANT 3,00 OFFICE SPECIALIST 2,00 PRINCIPAL ENGINEER 3,00 PROPERTY AGENT 1.00 PUBLIC WORKS INSPECTOR 3,00 SENIOR ENGINEER 3,00 SENIOR OFFICE SPECIALIST 1.00 SENIOR PUBLIC WORKS INSPECTOR 4,00 SENIOR SIGNAL TECHNICIAN 1.00 SPECIAL PROJECTS ENGINEER 1.00 SR CIP SPECIALIST 0,75 Public Works Subtotals: 62.75 RedeveloDment ADMINISTRATIVE ASSIST ANT DIR OF HOUSING & REDEVELOPMENT MANAGEMENT ANALYST 1.00 1.00 1.00 3.00 Redevelopment Subtotals: ExempU Minim urn Maximum NonExempt $3,154 $4,037 NE $4,561 $5,841 NE $4,561 $5,841 NE $3,306 $4,229 NE $5,364 $6,866 E $5,459 $7,225 E $8,004 $10,244 E $10,006 $12,808 E $3,082 $3,946 NE $3,545 $4,538 NE $3,306 $4,229 NE $4,627 $5,922 E $5,685 $7,276 E $2,807 $3,594 NE $5,043 $6,457 E $2,206 $2,823 NE $2,379 $3,045 NE $7,204 $9,221 E $5,364 $6,866 E $4,009 $5,131 NE $6,325 $8,096 E $2,714 $3,474 NE $4,609 $5,901 NE $4,627 $5,922 NE $5,364 $6,866 E $3,984 $5,100 NE $3,154 $8,278 $5,043 $4,037 $10,596 $6,457 NE E E Totals: Building & Safety City Clerk City Council City Manager Community Services Finance 21.00 10.00 5.00 10.00 41.00 16.00 3.00 11.00 24.00 1.00 62.75 3.00 207.75 Fire Information Systems Planning Police Public Works Redevelopment Total of Authorized Positions: Page 4 of 08/09/2006 4Updated on: TEMECULA COMMUNITY SERVICES DISTRICT ITEM NO. 28 MINUTES OF A REGULAR MEETING OF THE TEMECULA COMMUNITY SERVICES DISTRICT OCTOBER 10, 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, 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 11 Minutes RECOMMENDATION: 11 .1 Approve the minutes of September 26, 2006. MOTION: Director Comerchero moved to approve the Consent Calendar. Director Edwards seconded the motion and electronic vote reflected unanimous approval. CSD DIRECTOR OF COMMUNITY SERVICES REPORT No additional comment. CSD GENERAL MANAGER'S REPORT No additional comment. CSD BOARD OF DIRECTORS REPORTS No additional comments. R:\Minutes\101006 CSD ADJOURNMENT At 7:35 p.m., the Temecula Community Services District meeting was formally adjourned to Tuesday, October 24, 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 R:\Minutes\101006 2 ITEM NO. 29 Approvals City Attorney Director of Finance City Manager ~<" 1//2 !7 TEMECULA COMMUNITY SERVICES DISTRICT AGENDA REPORT TO: General Manager/Board of Directors FROM: William G. Hughes, Director of Public Works/City Engineer DATE: November 14, 2006 SUBJECT: Professional Services Agreement - Bonterra Consulting - Environmental Clearance for the Ronald Reagan Sports Park Desilting Basin - Project No. PW05-13 PREPARED BY: Greg Butler, Principal Engineer William Becerra, Assistant Engineer RECOMMENDATION: That the Board of Directors 1. Approve a Professional Services Agreement with Bonterra Consulting in an amount not to exceed $67,340.00 to prepare the Environmental Clearance for the Ronald Reagan Sports Park Desilting Basin, Project No. PW05-13, and authorize the President to execute the agreement; 2. Authorize the General Manager to approve extra work authorizations not to exceed the contingency amount of $6,734.00, which is equal to 10% of the agreement amount. 3. Advance $74,000.00 from TCSD - Citywide Fund to fund the project until such time Federal Emergency Management Agency (FEMA) provides funding through its reimbursement program. BACKGROUND: The Ronald Reagan Sports Park Desilting Project will dredge and clear two desilting ponds that will assist with providing adequate storage for runoff water and silt adjacent to the Community Recreation Center, located along the westerly side of the park. The two areas of work include: a pond that was dredged and graded approximately six years ago and a pond that contains sensitive habitat near the outfall. FEMA has agreed to a reimbursement amount of $205,000.00 with the balance of any additional expenditures eligible for reimbursement upon project completion. The scope of work specified in the agreement consists of providing all necessary environmental studies, assessments and documents necessary to obtain permits/clearances from, but not limited to, California Environmental Quality Act (CEQA), U.S. Army Corps of Engineers (USACoE), California Department of Fish and Game (CDFG), and Regional Water Quality Control Board (RWQCB). On June 13,2006 Requests for Proposal (RFP) were sent to four (4) environmental firms. One (1) response was received from Bonterra Consulting. Staff reviewed their Statement of Qualifications and deemed Bonterra Consulting qualified to provide the necessary environmental clearances. Bonterra Consulting has substantial experience with this type of service and has experience with other City projects. Staff has negotiated an equitable scope of work and fee for the needed services. FISCAL IMPACT: This project is in the City's Capital Improvement Program, Fiscal Years 2007-2011 and is eligible to be funded with FEMA funds on a reimbursement bases. Funds will be advanced from TCSD - Citywide Fund until such time as the City receives reimbursement from FEMA. The total agreement cost is $74,074.00, which includes the agreement amount of $67,340.00 plus 10% contingency amount of $6,734.00. ATTACHMENTS: 1. Project Location 2. Project Description 3. Professional Services Agreement - Bonterra Consulting ~ E:: IS c "4 t; ~ ~ ~ ~ > o ~ ~ = rn I U ~ rn ~ f}j~ ~O c.!l~ <~ ~E:: ~~ ~g OIi;;1 ~~ ~ g:; 'Ii .. '0' .. ~ '" VlTI3W\fO 31lVO CAUEVENTU'" on \0 Ii Ii i iff !? 1 if 0 0 iIi i5 ~ t iI 0 Pi m ~ > ~ ~ ~ ~ ~ 'Vllll\3J.l:/OO ~ ~ ~ 3 0 ~ Q 0 5 ~ 0 & ~ 0 z~ ..... ~ Eil o Eil ~ ~ N E-< .~ U '~ ~ b ,~ c ~ ~ ~ :> o ~ r:a E-< = '" I ~ ~ '" ~ ~~ "'z Zo ~~ <z r:a~ ~~ ~~ >td~ ;,; +l P ~ '" .~ " ... ~ ~ p< '" t: o p< '" " fi 4-< o ~ '" ~ "" 8 p< .:: .S '" .=: .~ '" " "" .s "" !il ~ p., '" E; p< iZl !il OJ) '" ~ "" -;;; ~ .S "" tJ o ..s " ~ .<:: o " fi j ~ ~ .~ '" ~ ~ ~ p.,1'<: ;,; ~ ~ .<:: o " fi .S .=: .u) 4-< o OJ) .S '" o go '6 "" f;o a ~ o ~ ~ ~ o Ngf 0] z.<:: @ @ 8 .~ o ~ < 0 I K '" " " " .g "" IC..E " 0 iZl.S O:::l .~ 'Ii< Il 8~ ij '" .."0' -= ... "'~ ~'S '" '" "" '" " ~a5 -d 8 p< .:: o ~ '" .l.J "" !il '" " 1<1 " fi " '" '" ~ .S ] ~ p< '" t: o go .s .S OJ) .:: '6 o o <;:i. ~ 8 .:: .~ ~ 19 ~:-;:: p<'" o S ~ '" t " "".l:l ... '" .s ~ ~"" " " E 0 "'-6 .<:: " o ... """ fi !il 4-< o t 0," '0 is: 8.13 '" 0 o~ " '" 0"" <;:io ".<:: fiB """ '" .:: :l 0 ... o " .S .<:: ~~ 0 'Ii< 0 g 0' o V) ~oooo ~~88gg Q.~~" -;;80000 c ("'>.llllC"")O U" ~ V) U"""""""" tl ~ ill ~ '" '" -;~ ~~ <> " <.... "" .t.: '" " U .... <> '" .~ " ... ~ -; .... " E-< .-< .-< , <:> .-< <:> '" <:> .-< , ~ <:> <:> '" ~ <:> , 00 <:> <:> '" 00 <:> t!. <:> <:> '" 0000 1:'0000 =0000 ...b 0"00"6 QNV}('f'10 <:> ~ V) '" &";} v:r €A €17 s 'iij 8 ... .~ tn b 'S g 51 '" 'p ~"(i)] ..g 0 (l) 0 <UOE-< 00 00 00 cS 0;- 00 V) V) "" "" '0 '0 - ~ D:l ~ , ... " ;s o -., t& ,,"1:1 ~& -s~ ~ 00 .g. ZI'<:E-< ~ '" o ~ U't:l ~ ~ ~~ o'S '" " ... <> ~ ... ;:; g ~'" AGREEMENT FOR PROFESSIONAL CONSULTANT SERVICES RONALD REAGAN SPORTS PARK CHANNEL SILT REMOVAL AND DESILTATION POND PROJECT NO. PW05-13 THIS AGREEMENT is made and effective as of November 14, 2006, between the City of Temecula, a municipal corporation ("City") and Bonterra Consulting, ("Consultant"). In consideration of the mutual covenants and conditions set forth herein, the parties agree as follows: 1. TERM. This Agreement shall commence on October 24, 2006, and shall remain and continue in effect until tasks described herein are completed, but in no event later than October 24, 2007, unless sooner terminated pursuant to the provisions of this Agreement. 2. SERVICES. Consultant shall perform the services and tasks described and setforth 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 time 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 hereunder in meeting its obligations under this Agreement. 4. PREVAILING WAGES. Pursuant to the provisions of Section 1773 of the Labor Code of the State of California, the City Council has obtained the general prevailing rate of per diem wages and the general rate for holiday and overtime work in this locality for each craft, classification, or type of workman needed to execute this Contractor from the Director of the Department of Industrial Relations. Copies may be obtained from the California Department of Industrial Relations' Intemet web site at http://\MNW.dir.ca.gov. Consultant shall provide a copy of prevailing wage rates to any staff or sub-contractor hired, and shall pay the adopted prevailing wage rates as a minimum. Consultant shall comply with the provisions of Sections 1773.8, 1775, 1776, 1777.5,1777.6, and 1813 of the Labor Code. Pursuant to the provisions of 1775 of the Labor Code, Consultant shall forfeit to the City, as a penalty, the sum of $25.00 for each calendar day, or portion thereof, for each laborer, worker, or. mechanic employed, paid less than the stipulated prevailing rates for any work done under this contract, by him or by any subcontractor under him, in violation of the provisions of the Contract. 5. 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, Payment Rates and Schedule, attached hereto and incorporated herein by this reference as though set forth in full, based upon actual time spent on the above tasks. Any terms in Exhibit B other than the scope of work to be perforrned, payment rates and schedule of payment are null and void. This amount shall not exceed Sixty Seven Thousand Three Hundred Forty Dollars and No Cents ($67,340.00) for the total term of the Agreement unless additional payment is approved as provided in this Agreement. b. Consultant shall not be compensated for any services rendered in connection with its performance of this Agreement which are in addition to those set forth herein, unless such additional services are authorized in advance and in writing by the City Manager. Consultant shall be compensated for any additional services in the amounts and in the manner as agreed to by City 1 R:ICIPIProjeclsIPW05-13\Agreemenls\Bonterra Agreement Manager and Consultant at the time City's written authorization is given to Consultant for the performance of said services. The City Manager may approve additional work up to ten percent (10%) of the amount of the Agreement or twenty-five thousand dollars ($25,000.00). Any additional work In excess of this amount shall be approved by the City Council. c. Consultant will submit invoices monthly for actual services performed. Invoices shall be submitted between the first and fifteenth business day of each month, for services provided in the previous month. Payment shall be made within thirty (30) days of receipt of each invoice as to all non-disputed fees. If the City disputes any of consultant's fees it shall give written notice to Consultant within 30 days of receipt of a invoice of any disputed fees set forth on the invoice. 6. 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 least ten (10) days prior written notice. Upon receipt 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 wll submit an invoice to the City pursuant to Section 4. 7. 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 hereunder arises out of causes beyond the Consultant's control, and 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 conditions 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 of this 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. 8. OWNERSHIP OF DOCUMENTS. a. Consultant shall maintain complete and accurate records with respect to sales, costs, expenses, receipts and other such information required by City that relate to the performance of services under 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 Identi- 2 R:\CIP\Proiects\PW05-13\Aoreements\Bonterra Aareement fied and 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 there from 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 containing data generated for the work, 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 containing data generated for the work, Consultant shall make available to the City, upon reasonable written request by the City, the necessary computer software and hardware for purposes of accessing, compiling, transferring and printing computer files. 9. INDEMNIFICATION. The Consultant agrees to defend, indemnify, protect and hold harmless the City, its officers, officials, employees and volunteers from and against any and all claims, demands, losses, defense costs or expenses, including attorney fees and expert witness fees, or liability of any kind or nature which the City, its officers, agents and employees may sustain or incur or which may be imposed upon them for injury to or death of persons, or damage to property arising out of Consultant's negligent or wrongful acts or omissions arising out of or in any way related to the performance or non-performance of this Agreement, excepting only liability arising out of the negligence of the City. ,10. INSURANCE REQUIREMENTS. 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 hereunder by the Consultant, its agents, representatives, or employees. a. Minimum Scope of Insurance. Coverage shall be at least as broad as: (1) Insurance Services Office Commercial General Liability form No. CG 00 01 11 85 or 88. (2) Insurance Services Office Business Auto Coverage form GA 0001 06 92 covering Automobile Liability, code 1 (any auto). If the Consultant owns no automobiles, a non-owned auto endorsement to the General Liability policy described above is acceptable. (3) Worker's Compensation insurance as required by the State of California and Employer's Liability Insurance. Iflhe Consultant has no employees while performing under this Agreement, worker's compensation insurance is not required, but Consultant shall execute a declaration that it has no emplo}ees. (4) Professional. Liability Insurance shall be written on a policy form providing professional liability for the Consultant's profession. b. Minimum Limits of Insurance. Consultant shall maintain limits no less than: (1) General Liability: One million dollars ($1,000,000) per occurrence for bodily injury, personal injury and property damage. If Commercial General Liability Insurance or other form with a general aggregate 3 R:\CIP\Proiecls\PWOfi..13\Aareements\Bonterra Aareement limit is used, either the general aggregatelimit shall apply separately to this projecUlocation or the general aggregate limit shall be twice the required occurrence limit. (2) Automobile Liability: One million dollars ($1,000,000) per accident for bodily injury and property damage. (3) Worker's Compensation as required by the State of California; Employer's Liability: One million dollars ($1 ,000,000) per accident for bodily injury or disease. (4) Professional Liability coverage: One million ($1,000,000) per claim and in aggregate. c. Deductibles and Self-Insured 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 deductibles or self-insured retentions as respects the City, its officers, officials, employees and volunteers; or the Consultant shall procure a bond guaranteeing payment of losses and related investigations, claim administration and defense expenses. d. Other Insurance Provisions. The general liability and automobile liability policies are to contain, or be endorsed to contain, the following provisions: (1) The City, its officers, officials, employees and volunteers are to be covered as insured's 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 and shall not contribute with it. (3) Any failure to comply with reporting or other provisions ofthe 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. 4 R:\CIPlProJeclsIPW05-13IA!lreemenlslBonterra Aareement e. Acceotabilitv of Insurers. 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. Self insurance shall not be considered to comply with these insurance requirements. f. Verification of Coveraae. Consultant shall furnish 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 forms 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 affecting the coverage required by these specifications. 11. INDEPENDENT CONTRACTOR. a. Consultant is and shall at all times remain as to the City a wholly independent contractor. The personnel performing the services under this Agreement on behalf of Consultant shall at all times be under Consultant's exclusive direction and control. Neither City nor any of its officers, employees, agents, or volunteers shall have control over the conduct 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 City, or bind City in any manner. b. No employee benefits shall be available to Consultant in connection with the performance of this Agreement. Except for the fees paid to Consultant as provided in the Agreement, City shall not pay salaries, wages, or other compensation to Consultant for performing services hereunder for City. City shall not be liable for compensation or indemnification to Consultant for injury or sickness arising out of performing services hereunder. 12. LEGAL RESPONSIBILITIES. The Consultant shall keep itself informed of all local, State and Federal ordinances, laws and regulations which in any manner affect those employed by it or in any way affect the performance of its service pursuant to this Agreement. The Consultant shall at all times observe and comply with all such ordinances, 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. 13. RELEASE OF INFORMATION. a. All information gained by Consultant in performance of this Agreement shall be considered confidential and shall not be released by Consultant without City's prior written authorization. Consultant, its officers, employees, agents or subcontractors, sh,all not without written authorization from the City Manager or unless requested by the City Attomey, voluntarily provide declarations, letters of support, testimony at depositions, response to interrogatories or other information concerning the work performed under 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 order or subpoena. b. Consultant shall promptly notify City should Consultant, its officers, employees, agents or subcontractors be served with any summons,complaint, subpoena, notice of deposition, request for documents, interrogatories, request for admissions or other discovery request, court order or subpoena from ahy party regarding this Agreement and the work performed there under or with respect to any project or property located within the City. City retains the right, but has no obligation, to represent Consultant and/or be present at any deposition, hearing or similar 5 R.\r.IP\P,,^Ia.rfc!\PWnIt.1 ":l.\.4.nra4n"Lelnt..\Dt"\ft.....rr.:o Iinl'Aarnont proceeding. Consultant agrees to cooperate fully with City and to provide City 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, direct, or rewrite said response. 14. 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, return 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. Notice shall be effective upon delivery to the addresses specified below or on the third business day following deposit with the document delivery service or United States Mail as provided above. City of Temecula Mailing Address: P.O. Box 9033 Temecula, California 92589-9033 43200 Business Park Drive Temecula, California 92590 Attention: City Manager Bonterra Consulting 151 Kalmus Drive Costa Mesa, California 92626 Attention: Joan PatlOnite Kelly, AICP 15. ASSIGNMENT. The Consultant shall not assign the performance of this Agreement, nor any part thereof, nor any monies due hereunder, without prior written consent of the City. Upon tenmination of this Agreement, Consultant's sole compensation shall be payment for actual services performed up to, and including, the date of tenmination or as may be otherwise agreed to in writing between the City Council and the Consultant. To City: To Consultant: 16. LICENSES. At all til")1es during the term of this Agreement, Consultant shall have in full force and effect, all licenses required of it by law for the perfonmance of the services described in this Agreement. 17. GOVERNING LAW. The City and Consultant understand and agree that the laws of the State of California shall govern the rights, obligations, duties and liabilities of the parties to this Agreement and also govern the interpretation of this 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 such litigation is filed by one party against the other to enforce its rights under this Agreement, the prevailing party, as detenmined by the Court's judgment, shall be entitled to reasonable attomeyfees and litigation expenses for the relief granted. 18. PROHIBITED INTEREST. No officer, or employee of the CityofTemecula shall have any financial interest, direct or indirect, in this Agreement, the proceeds thereof, the Contractor, or Contractor's sub-contractors for this project, during his/her tenure or for one year thereafter. The Contractor hereby warrants and represents to the City that no officer or employee of the City of Temecula has any interest, whethei'contractual, non-contractual, financial or otherwise, in this transaction, or in the business of the Contractor or Contractor's sub-contractors on this project. Contractor further agrees to notify the City in the event any such interest is discovered whether or not such interest is prohibited by law or this Agreement. 6 R:\CIPlProledsIPW05-13\Aareemenls\Bonterra Anreemenl 19. ENTIRE AGREEMENT. This Agreement contains the entire understanding between the parties relating to the obligations of the parties described 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 independent investigation of any and all facts such party deems material. 20. AUTHORITY TO EXECUTE THIS 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. . 7 R:\CIPlProjectsIPW05-13\Agreements\Bonlerra Agreement IN WITNESS WHEREOF, the parties hereto have caused this Agreementlo be executed the day and year first above written. CITY OF TEMECULA Ron Roberts, Mayor Attest: Susan W. Jones, MMC, City Clerk Approved As to Fonm: Peter M. Thorson, City Attorney CONSULTANT Bonterra Consulting 151 Kalmus Dr. Costa Mesa, CA 92626 (714) 444-9199 Joan Patronite Kelly, AICP, Principal Ann Johnston, Principal (Two Signatures of Corporate Officers Required For Corporations) 8 R:\CIPIProiectsIPW05-13IAareementslBonterra Aareemenl EXHIBIT A TASKS TO BE PERFORMED RONALD REGAN SPORTS PARK CHANNEL SILT REMOVAL AND DESILTATION POND PROJECT NO. PW05-13 Environmental Clearance for Ronald Reagan Sports Park Desiltation Pond 9 R:ICIPIProjects\PW05-13\AgreementsIBonterra Agreement iE" '~-:)<' ;:'" " "~"I ,..f{:~;" ~, '~ ',.....;~.:_;."!,K... CONSULTING Celebraling ~~ An Ellvironrnenlol PI0l1Ilin9/Re~o[)I(e Monogem~'!I' CorP(!luli{.'f1 RECEIVED SEI" 2 2 2006 1996-2006 CITY OF TEMECULA EN I I LSS c' ~/) September 19, 2006 ,J ( Mr. William Becerra Assistant Engineer City of T emecula 43200 Business Park Drive Temecula, CA 92590 Subject: Revised Proposal for RFP No. 146 Environmental Clearance for Ronald Reagan Sports Park Desiltation Project Dear Mr. Becerra: ~')~--' ,.0'1 !;i'-'I' ~::::'11~'-1> v'l) II;;' 'II /"!~Lt::-- .. ---- BonTerra is pleased to be selected by the City of Temecula to perform the environmental analysis and associated permitted for the Ronald Reagan Sports Park Desiltation project. We have revised our proposal based on information received during our September 12, 2006 meeting. The following revisions have been made to the proposal: {!)F !!?~,~.,,~. . Air quality has been excluded as an issue based on no particulates and minimal construction emissions. . Cultural resources has been excluded as an issue based on the entire area having been previously disturbed. . Focused surveys for least Bell's vireo and southwestern willow flycatcher have been excluded because construction would occur during the non-breeding season (September 15-March 15); therefore, there would be no impact on these species. . Focused surveys for burrowing owl have been excluded because there is no suitable habitat for burrowing owl within the impact area. . The Determination of a Biologically Equivalent or Superior Preservation (DBESP) has been excluded because man-made features are excluded from the definition of Riparian/Riverine in the Western Riverside Multiple Species Habitat Conservation Plan (MSHCP). . The jurisdictional delineation has been excluded because it is assumed that this project can rely on the previous documentation. . The hours for preparation of the Initial Study have been reduced because previous documentation has been ,conducted for the project. 151 Kalmus Drive Suite E- 200 CosIo Meso ,CalIfornia 92626 1714) 444-9199 (7141444-9599 fax www.bonterraconsulting.com Mr. William Becerra September 19, 2006 Page 2 We look forward to hearing from you regarding this contract and the initiation of the proposed project. Should you have any questions regarding this proposal or BonTerra Consulting, please feel free to contact us. Respectfully submitted, Joan Patronite Kelly, AIC Principal Enclosures ~~~ Amber S. Oneal Project Manager/Ecologist R:\Proposals\T emecuI\P004\POO4 SQW-091906.doc RESPONSE TO REQUEST FOR PROPOSAL FOR ENVIRONMENTAL CLEARANCE FOR RONALD REAGAN SPORTS PARK DESIL TAT/ON TASK ANALYSIS RONALD REAGAN SPORTS PARK DESILTATION ENVIRONMENTAL CLEARANCE BONTERRA CONSULTING OVERVIEW Founded in August 1996, BonTerra Consulting is a California Corporation and a woman- owned, small business that provides environmental planning and natural resources management services to public and private sector clients throughout southern and central California. Over the past ten years, BonTerra Consulting has grown to 55 professional personnel. The eight principals of the firm have over 150 years of collective, hands-on experience in environmental planning, impact assessrnent, natural resources management, and city and regional planning studies for local, state, and federal agencies and private sector clients, including new community developers, architects, engineers, universities, and aerospace, telecommunications, and waste management organizations. Typical project experience includes master planned communities; parks, golf courses, and recreational facilities; entertainrnent theme parks; urban infrastructure systems such as transportation corridors, highways, and bridges, airports, landfills, material recovery facilities (MRFs), wastewater and water supply facilities; and urban in-fill projects, including office complexes, mixed-use employment and retail business parks, and commercial/retail centers. BonTerra Consulting has three office locations: Temecula Office 40810 County Center Drive, Suite 100 Temecula, CA 92591 Costa Mesa Office 151 Kalmus Drive, Suite E-200 Costa Mesa, CA 92626 Pasadena Office 3452 East Foothill Boulevard, Suite 420 Pasadena, CA 91107 Joan Patronite Kelly, Alep, Principal 10 Amber Oneal, Project ManagerlBiologist 8 Gary Medeiros, Associate PrincipallRegulatory Services 6 BonTerra Consulting has reviewed the City's Standard Professional Services agreement and, if selected, will execute the agreement. PROJECT TEAM Joan Patronite Kelly, AICP, is a Principal of BonTerra Consulting and will have direct and continued responsibility for the project. She is an urban and environmental planner with ~M . ~ CONSULTING Pagel RESPONSE TO REQUEST FOR PROPOSAL FOR ENVIRONMENTAL CLEARANCE FOR RONALD REAGAN SPORTS PARK DESIL TATlON 30 years of experience. Ms. Kelly's geographically diverse background includes a specialization of National Environmental Policy Act (NEPA) and California Environmental Quality Act (CEQA) compliance with direct experience preparing EISs, EIRs, EAs, land use studies, socioeconomic analyses, transportation planning, and land use development planning, including permit processing: Her specialties include direction of multi-disciplinary, complex, and controversial projects, such as the U.S. Army Corps of Engineers (USACE) Indefinite Delivery Type Contract for Miscellaneous Environmental Studies and the EIRs for The Disneyland Resort, the Anaheim Resort Specific Plans, and the Pointe Anaheim development in Anaheim. Amber Oneal is a Project Manager/Biologist with over nine years of experience in environmental documentation, including CEQA, NEPA, and the Federal and California Endangered Species Acts. Ms. Oneal will be the City's contact on all matters dealing with the project and will handle all day-to-day activities through to completion. Ms. Oneal has performed impact analysis for many environmental resource issue areas, but specializes in biological resources. Ms. Oneal has extensive experience in managing large and complicated projects including a county-wide focused survey prograrn and permitting support for over 100 channels and 152 debris basins for the County of Los Angeles Department of Public Works. She has also completed Natural Environment Studies and focused surveys for several interchange improvement projects for the California Department of Transportation (Caltrans) in western Riverside County. Ms. Oneal is currently working with Caltrans and the cities of Temecula and Murrieta on the processing of a Deterrnination of a Biologically Equivalent or Superior Preservation (DBESP) for one of these interchange projects. Ms. Oneal is well-versed in the requirements of the Western Riverside Multiple Species Habitat Conservation Pl,an (MSHCP) and conducts or provides senior-level review for many Habitat Assessments for private development projects within western Riverside County. In addition, Ms. Oneal conducts focused surveys for special status bird species, including the least Bell's vireo. PROJECT EXPERIENCE French Valley Parkway Interchange and Widening of Interstate-15 in Temecula and Murrieta, Riverside County (2002-2003) BonTerra Consulting is preparing the environmental document for the proposed improvements to Interstate-15 (1-15) and Interstate-215 (1-215) corridor between Murrieta Hot Springs Road and Winchester Road. The proposed improvements include a new interchange, French Valley Parkway. Other proposed improvements include a collector- distributor system, auxiliary lanes on the 1-15, and ramp modifications for Winchester Road. BonTerra is conducting the biological studies for this project including the Natural Environment Study (NES); focused surveys for special status plant species, least Bell's vireo/southwestern willow flycatcher, burrowing owl, and Los Angeles pocket mouse; Jurisdictional Wetland Delineation Report; and resource agency consultation during the DBESP process. Cultural resource studies include a records and literature search, Historic Property Survey Report, preparation of an Archaeological Survey Report, and agency coordination. CEQA and NEPA analysis in the form of an Initial Study (IS)/Mitigated Negative Declaration (MND) and an Environmental Assessment /Finding of No Significant Impact have also been prepared. ~1iI~~ .c 0 N s. V L T , N GOO Page 2 '" '" '" '" D- >: g i! '" m Cl ~ ~ 0.. ~1! ca 0 ~Il: - < ~~ ~ ~ III ~.~ 0 iij e U CD Gi Gl lil: c 'Qj ll:ilI E !l 0 'tl ~lt .. Gl Cl CD 'c Gl ::!: 13~ l- e .c >- ~: E .. 2lt - III - III c( Cl O:l!j 0 0.. 11" c "'~ >- III ~>: - 0 ~~ .- ~ mill 0 0:0 ~ i! 1ij ~ ~ ai 1:: III .c o iij c o j 'c III 01 .. o RESPONSE TO REQUEST FOR PROPOSAL FOR ENVIRONMENTAL CLEARANCE FOR RONALD REAGAN SPORTS PARK DESIL TAT/ON Reference: George Hale Moffat & Nichol 250 West Wardlow Road Long Beach, CA 90807 (562) 426-9551 The Interstate-1SRndian Truck Trail Project, Murrieta, Riverside County The 1-15/lndian Truck Trail project site is located near Murrieta, Riverside County. The proposed project was widening of an existing interchange to service a new planned community. A NES was prepared and analyzed potential impacts on special status plant species, Quino checkers pot, arroyo toad, coastal California gnatcatcher, least Bell's vireo, southwestern willow flycatcher, Stephens' kangaroo rat, San Bernardino kangaroo rat, and Los Angeles pocket mouse. Focused surveys were conducted for many of these species prior to the implementation of the MSHCP. The final NES was consistent with the MSHCP, which was approved during preparation of the documentation. Reference: Bruce Grove RBF Consulting 14725 Alton Parkway Irvine, CA 92618 (949) 472-3505 Los Angeles County Department of Public Works, On-Call Services (2002-Present) BonTerra Consulting has an on-call biological services contract with the Los Angeles County Department of Public Works (LADPW). This contract has included a multiple-year, County- wide habitat assessment and/or focused survey effort for special status plant and wildlife species in over 100 channels maintained by the LADPW primarily along the Los Angeles, San Gabriel, and Santa Clara rivers. The purpose of the focused surveys was to collect baseline information that was used to obtain permits/agreernents frorn the USACE, U.S. Fish and Wildlife Service (USFWS), and California Department of Fish and Game (CDFG) for continued channel maintenance. BonTerra Consulting is currently preparing environmental documentation for 152 debris basins throughout the County maintained by the LADPW. BonTerra Consulting conducted an assessment of the basins and made recommendations for focused surveys based on previous biological surveys. Focused surveys for special status species were conducted in 2005 and 2006. Similarly, these surveys will be used to obtain necessary permits/ agreements with the USACE, USFWS, and CDFG for on-going maintenance of the debris basins. Biological Technical Reports and focused surveys for several other projects with similar issues have also been conducted under this contract. These projects include the Santa Clara River Drop Structure and Interim Rock Groins, Zone 1 Ditch Improvements, San Gabriel River Rubber Dams project, Pico Canyon Invert Stabilizers and Access Ramp, and, Termino Avenue Drain project. The San Gabriel River Rubber Dams project also included preparation of a Biological Assessment to analyze the impacts of the project on the least Bell's vireo, provided technical support for the Section 7 consultation, prepared the Habitat Management Plan, and is currently providing restoration monitoring for this project. BonTerra Consulting has also managed two biological monitoring projects for construction within the ~Nerr-~ .c 0 N S U L T , N G"" Page 4 RESPONSE TO REQUEST FOR PROPOSAL FOR ENVIRONMENTAL CLEARANCE FOR RONALD REAGAN SPORTS PARK DESILTATION South Fork of the Santa Clara River and has completed the necessary documentation to satisfy the Natural River Management Plan. Reference: Jemellee Cruz, P.E., Project Manager County of Los Angeles, Department of Public Works 10179 Glenoaks Boulevard Sun Valley, CA 91352 (818) 896-0594 Los Angeles County Department of Public Works, 95 Earth Bottom Channels, Biologica/ Services Consulting Contracts (1997-Present) BonTerra Consulting was initially retained by the Department of Public Works to determine the potential biological sensitivities of each channel reach in late summer of 1997. After conducting an initial assessment, BonTerra's scope of work was expanded by the County to include field mapping' of vegetation that was to be either cleared or retained and to conduct monitoring during clearing operations to document the types of vegetation that was being removed. The requirements of permits issued to LADPW by the USACE (Section 404 Permit), the Regional Water Quality Control Board (RWQCB) (Section 401 Water Quality Certification), and the CDFG (Streambed Alteration Agreement) were reviewed and consulted in providing direction to LADPW staff and contractors responsible for vegetation removal. Project schedules and regulatory agency requirements for vegetation clearing to be completed by December 1, 1997 (work started in early October), required BonTerra to provide as many as ten biologists each day (seven days per week) over an eight-week period. BonTerra Consulting served as the project coordinator for this work effort and coordinated several times each day with the assigned biologists, LADPW managers, and clearing supervisors to ensure that appropriate guidance and documentation was completed. BonTerra Consulting biologists were key members of the project team. BonT erra Consulting was retained again by LADPW in October 1999 to conduct follow-up monitoring for the 1999-2000 season for vegetation clearing in the sarne channels evaluated in 1997 and 1998. Due to minimal rainfall conditions, little clearing was necessary in 1998-1999. BonT erra Consulting coordinated the work of all assigned biological monitors and scheduled short-notice field verification visits by assigned staff. Aerial photographs and CADD plots of areas where vegetation removal had previously occurred were reviewed to achieve budget and time savings for LADPW. As-needed consultation services were provided to the Department management staff to ensure that appropriate documentation of vegetation removal activities, as well as compliance with mitigation monitoring program requirements, was completed. In October 2000, BonTerra Consulting was selected to provide on-call biological resources monitoring services to the LADPW under a three year contract. Services to be provided under this agreement include pre- and post-vegetation clearing biological monitoring in the regulated 95 earth bottom channels, as well as other biological resources survey, assessment, and documentation tasks as requested by LADPW . ~Nerr4!l :c 0 NS U L TI N G Page 5 EXHIBIT B PAYMENT RATES AND SCHEDULE 10 R:\CIPIProieclsIPWOS.13IA!lreemenIsIBonlerra Acreemenl RESPONSE TO REQUEST FOR PROPOSAL FOR ENVIRONMENTAL CLEARANCE FOR RONALD REAGAN SPORTS PARK DESIL TAT/ON Reference: Jerry Burke, P.E. County of Los Angeles, Department of Public Works 900 South Fremont Avenue Alhambra, CA 91803 (626) 458-4114 PROJECT UNDERSTANDING AND PROJECT APPROACH The City of Ternecula is seeking assistance from a consulting firm to prepare and process environmental documentation and appropriate regulatory permits that will authorize the dredging and on-going periodic maintenance of two desiltation basins located in Ronald Reagan Sports Park, adjacent to and west of the Community Recreation Center. The project is located at 30875 Rancho Vista Road in Temecula, California. There are two ponds proposed to be cleared. The pond closest to the Community Recreation Center was dredged and graded in 2000. The second pond is a little further west and currently contains sensitive riparian habitat that may support special status bird species. The dredging work performed in 2000 required permitting from the USACE (Nationwide Permit 31), the CDFG, and the RWQCB. The proposed project will require permits from all three of these agencies. In addition, the proposed action fits the definition of "project" under CEQA and therefore will require environmental clearance. BonTerra Consulting will prepare an IS, MND, and necessary supporting technical studies for biological resources. The biological resources study will consist of a Habitat Assessment to meet the requirements of the Western Riverside MSHCP. This study will address endangered species and designated critical habitat for those species and how they should be addressed following the Western Riverside MSHCP. Following completion of the CEQA documentation and receipt of the Notice of Determination, the regulatory permitting will be completed. TASKS NEEDED TO COMPLETE THE SCOPE OF WORK Task 1 Proiect Initiation $2,600 BonTerra Consulting will coordinate with the City of Temecula and appropriate team members to discuss the project and the proposed scope of work. This coordination effort is proposed to ensure that the City as lead agency concurs with the scope of work, studies to be completed, and appropriate environmental documentation for the project. Deliverable: 1. Attendance at one project meeting with the City is assumed for this task. A separate internal kick-off meeting with all BonTerra Consulting project staff is also included in this task. Staff: Joan Patronite Kelly, AICP, Principal Amber Oneal, Project Manager/Biologist Gary Medeiros, Associate Principal/Regulatory Services Ecologist GIS Specialist 6 hours 8 hours 2 hours 2 hours 2 hours ~1iI~ :c 0 N S UL T , N G" Page 6 RESPONSE TO REQUEST FOR PROPOSAL FOR ENVIRONMENTAL CLEARANCE FOR RONALD REAGAN SPORTS PARK DESILTATlON Technical Studies Task 2 Habitat Assessment $5,470.00 A habitat assessment report consistent with guidelines set forth in the Western Riverside MSHCP will be prepared. The project site will be assessed for the potential presence of riparian/riverine resources, vernal pool habitat, and urban/wildlands interface issues. The habitat assessment will also provide an evaluation of potential habitat for the burrowing owl and any species not covered by the Western Riverside MSHCP. The habitat assessment will include a one-day field visit performed by a botanist and wildlife biologist to describe the current conditions on the project site. Any notable biological resources observed will be mapped on an aerial photograph. Any special status species observed will also be reported to the California Natural Diversity Database (CNDDB). A letter report will be written to describe the results of the habitat assessment following completion of the survey. The report will include 1) the methodology used to conduct the survey; 2) a general description of the existing vegetation types and associated wildlife resources on the project site; and . 3) recornmendations based on Western Riverside MSHCP guidelines. Deliverable: 1. Three copies of the Habitat Assessment report consistent with the requirements of the Western Riverside MSHCP submitted to the City of Temecula Staff: Amber Oneal, Project Manager/Biologist Senior Biologist Junior Biologist GIS Specialist Word Processing 8 hours 16 hours 16 hours 16 hours 6 hours Task 3 CEQA Clearance Task 3A Prepare Initial Study $10,270.00 BonTerra Consulting will prepare the environmental document. This scope of work assumes that an IS, leading to the preparation of. a MND, is the appropriate CEQA document. The IS and MND will be prepared pursuant to CEQA and the state CEQA Guidelines. It is assumed that the project does not involve any federal funding and therefore the NEPA process will not be applicable. In compliance with Section 15063 of the CEQA Guidelines, the IS will contain a description ofthe project, including: the location ofthe project; a discussion of the environmental setting; an identification of environmental effects; and a discussion of mitigation measures. BonTerra Consulting will follow the format used for other MNDs recently prepared for other projects iri the City of Temecula. The discussion of environmental effects will follow the City's environmental checklist form. The discussion of the environmental setting will be based on review of existing literature and a site visit and specific site surveys for technical analysis as described within this proposal. Mitigation measures will be developed for significant impacts identified through the environmental analysis. Following is a description of the work effort for assessing potential environmental effects relative to each topical issue. Air Quality - BonTerra Consulting will exclude air impacts as an issue based on no particulates and minimal construction emissions. ~1iI~ :c 0 N S V L TIN G Page 7 RESPONSE TO REQUEST FOR PROPOSAL FOR ENVIRONMENTAL CLEARANCE FOR RONALD REAGAN SPORTS PARK DEBIL TAT/ON Aesthetics - BonTerra Consulting will conduct a site visit to document the existing visual environment of the project site. The IS will qualitatively discuss the potential visual changes resulting from the implementation of the project. Biological Resources - BonTerra Consulting will prepare a summary discussion of the biological studies (Le., Habitat Assessment, focused surveys, and Jurisdictional Delineation) that will be prepared for the project area. If any project impacts are identified, appropriate mitigation measures will be identified. Cultural Resources - BonTerra Consulting will exclude archaeological and historical issues based on the entire area having been previously disturbed. Geology and Soils - BonTerra Consulting will utilize existing information for the project site to document any geologic issues in the area. We will also consult with the project engineer regarding soil issues and erosion or any other project concerns. BonTerra Consulting will review the available information for adequacy and incorporate the findings into the IS. The IS will also identify any recommended mitigation measures. Hazards and Hazardous Materials - BonT erra Consulting will conduct a records search to identify any known hazardous materials sites in the vicinity of the project. The IS discussion will be based on the results of this records search or Phase I Report. Should any hazardous substances be located on the project site and be subject to disruption, the IS will identify appropriate state and federal regulations regarding the removal and transport of any such materials. Hydrology and Water Quality - As the project involves the dredging of two desiltation basins to store more runoff associated with the Community Recreation Center, no significant issues are anticipated related to hydrology or water quality. However, water quality will become an issue relating to the RWQCB permit. We will attemptto incorporate any direction from the RWQCB into the IS, if input is received in a timely manner. Land Use and Planning - BonTerra Consulting will document existing land uses on and surrounding the project site. A discussion of the project's compatibility with existing and planned land uses adjacent to the site will be provided with discussion of the land use remaining the same after dredging and maintenance has taken place. Mineral Resources - Based on available information from the City of Temecu/a Genera/ Plan, BonTerra Consulting will prepare a qualitative discussion to document the lack of mineral resources on the project site. Noise - It is assumed that construction activity will be limited to the hours specified by the Temecula Noise Ordinance and would, thus, be exempt from maximum noise thresholds. Due to the location of the project site within a park, the restoration of an existing use, and compliance with the Noise Ordinance, the project is not anticipated to generate noise that is considered significant. The IS will include further discussion supporting these findings. Population and Housing - No impact to population or housing is anticipated and the IS will document the reasoning behind this finding. Public Services and Utilities - No impact to public services and utilities is anticipated and the IS will document the reasoning behind this finding. 1fk,1iff!!W'~ CONSULTING"" Page 8 RESPONSE TO REQUEST FOR PROPOSAL FOR ENVIRONMENTAL CLEARANCE FOR RONALD REAGAN SPORTS PARK DES/LTATlON Recreation - Based on available information from the City of T emecula Genera/ Plan and coordination with City staff, BonTerra Consulting will assess potential direct and indirect impacts to existing recreational facilities within the Ronald Reagan Sports Park during dredging and document these findings in the IS. TransportationlTraffic - A traffic report is not assurned to be required; however, BonTerra Consulting will quantify the number of truck trips per day that are anticipated during dredging. If the additional number of truck trips will create a traffic impact, BonTerra Consulting will coordinate with the City Traffic Engineer to incorporate a mitigation plan into the IS. This could include a specified haul route to minimize streets with current capacity issues. Three copies of the preliminary checklist will be provided to the City of T emecula along with a digital file for review. Deliverable: 1. Three copies and digital copy of screencheck Initial Study for review by the City of T emecula Staff: Joan Patronite Kelly, AICP, Principal Amber Oneal, Project Manager/Biologist Ecologist GIS Specialist Editor Word Processor 16 hours 20 hours 60 hours 10 hours 12 hours 16 hours Task 38 Prepare Final Initial Study Checklist $1,970.00 Upon receipt of the City's comments, BonTerra Consulting will make final revisions to the IS. One of the primary purposes of the draft IS is to provide the lead agency with information to use as the basis for deciding whether to prepare an environmental impact report or negative declaration. To allow the City to make an informed decision, the draft IS will include the necessary technical analysis. Should the City's comments require revisions or additional information not assumed in this scope of work, a contract amendment may be required. Additionally, if the City determines (based on review of the draft IS) that an EIR is necessary, this scope of work and fee estimate would need to be modified. A decision ,to prepare an EIR could occur if there are significant impacts that cannot be mitigated to a level considered less than significant. This scope of work assumes that the City of Temecula, upon approval to circulate, will provide the MND/Notice oflntent to Adopt an MND cover sheet for circulation with the Initial Study. ' Deliverables: 1. Three copies and digital copy of final draft Initial Study for review by the City of Temecula 2. One copy of final approval draft for approval to circulate 3. Forty copies of the IS/MND for distribution, City, and team . Staff: Joan Patronite Kelly, AICP, Principal Amber Oneal, Project Manager/Biologist Ecologist Word Processor 2 hours 6 hours 8 hours 6 hours ~~ CONS U t TIN G' Page 9 RESPONSE TO REQUEST FOR PROPOSAL FOR ENVIRONMENTAL CLEARANCE FOR RONALD REAGAN SPORTS PARK DESILTATlON Task 3C Mailing of Initial Study and Proposed Mitigated Negative Declaration ( Optionaf) BonTerra Consulting will mail the IS and proposed MND/Notice of Intent to Adopt an MND on behalf of the City, using certified mail, return receipt processing. The City will provide the mailing list for use by BonTerra Consulting. This scope of work ass urnes that the City will file the Notice of Intent to Adopt an MND with the County Clerk as required by CEQA and post other appropriate notices required by the City's CEQA and entitlement review processes. CEQA doe.s not require that the lead agency provide written responses to comments received on the IS/MND, only that the comments be taken into consideration by the decision- makers. BonTerra Consulting has assumed that the City may need assistance to prepare for the Public Hearings on this project and may choose to have BonT erra prepare the response to comments received. This task is not assumed in this scope of work and a fee is not included; however, at the City's direction, BonTerra Consulting would be pleased to submit a scope of work for this task. Task 3D Prepare Mitigation Monitoring Program $1,910.00 To comply with Public Resources Code Section 21081.6, BonTerra Consulting will prepare a mitigation monitoring program (MMP) for adoption at the time of the MND. The MMP must be designed to ensure compliance with adopted mitigation requirernents during project implementation. The program will be prepared in matrix format and will provide the timing and responsibility for each mitigation measure. A draft copy will be submitted for review by the City. Revisions will be made accordingly. Deliverables: 1. Three copies of the draft MMP submitted to the City of Temecula 2. Three copies of the final MMP submitted to the City of Ternecula Staff: Joan Patronite Kelly, AICP, Principal Amber Oneal, Project Manager/Biologist Diane Barrett, Project Planner Word Processor 2 hours 4 hours 12 hours 4 hours Task 3E Prepare Notice of Determination $240.00 Within five working days of approval of the proposed project by the City, BonTerra Consulting will submit a Notice of Determination to the City for it to use in filings with the County Clerk and with the State Clearinghouse. Deliverable: 1. One copy of Notice of Determination submitted to the City of Temecula Staff: Joan Patronite Kelly, AICP, Principal Diane Barrett, Project Planner , 0.5 hours 2 hours 1!!$!2lllerl':#( :c 0 N S U L T I' N G"- Page 10 RESPONSE TO REQUEST FOR PAOPOSALFOR ENVIRONMENTAL CLEARANCE FOR RONALD REAGAN SPORTS PARK DESIL TAT/ON Task 3F Project Management and Meetings $11,620.00 BonTerra Consulting will coordinate with the City of Temecula, as necessary, to ensure compliance with the scope and schedule. In addition to the kick-off meeting previously identified, this scope of work assumes the need for two project team coordination meetings. Additionally, BonTerra Consulting's principal-in-charge and project manager will attend up to two public hearings at the City of Temecula. Deliverables: 1. Preparation and attendance at up to three team meetings. These meetings will be attended by BonTerra Consulting's project manager and principal in charge, if required. 2. Preparation and attendance at two public hearings. These meetings will be attended by BonTerra Consulting's principal-in-charge and project manager. Staff: Joan Patronite Kelly, AICP, Principal Amber Oneal, Project Manager/Biologist Administrative Assistant 30 hours 50 hours 8 hours Task 4 ReQulatorv Permit Processes Task 4A Pre-Application Meeting $2,630.00 BonTerra Consulting will schedule and conduct a pre-application meeting with the appropriate USACE, the CDFG, and the RWaCB staff to review the site conditions, the proposed project, project impacts, and jurisdictional delineation report that was transmitted to them prior to the meeting. The primary purpose of the meeting is to obtain concurrence with the delineation report. It is also suggested that a description of proposed mitigation to offset impacts to jurisdictional resources resulting from project implementation be available at this meeting. Deliverable: 1. Attendance at the pre-application field rneetings. These meetings will be attended by the regulatory services specialist and the project manager Staff: Gary Medeiros, Associate Principal/Regulatory Services Amber Oneal, Project Manager/Biologist Word Processor 10 hours 8 hours 6 hours Task 4B U.S. Army Corps 404 Permit Application $5,750.00 BonTerra Consulting will prepare and submit a permit application to the USACE, following review and approval of the application by the client, to satisfy the requirements of Section 404 of the Clean Water Act. The project engineer shall provide a CADD file of the projectthat includes the project limits, project elements, and features sufficientfor assessing impacts to jurisdictional resources and preparing the appropriate exhibits for the permit application. The USACE permit typically includes a jurisdictional delineation. Also, the' USACE permit requires the preparation and submittal of a RWaCB Section 401 Water Quality Certification for the completion of the Section 404 Permit. This proposal includes tasks for the preparation of a jurisdictional delineation, Section 401 Water Quality Certification. ~Nertv{ CONSULTING Page 11 RESPONSE TO REQUEST FOR PROPOSAL FOR ENVIRONMENTAL CLEARANCE FOR RONALD REAGAN SPORTS PARK DESILTATlON Deliverable: 1. Submittal of USACE 404 permit application to the USACE Staff: Gary Medeiros, Associate Principal/Regulatory Services Junior Biologist GIS Specialist Word Processor Task 4C California Department of Fish And Game 1601 Permit Application 25 hours 15 hours 8 hours 8 hou rs $5,750.00 CDFG Section 1601 Agreement application for Streambed Alteration (also known as a Streambed Alteration Agreement) will be prepared and submitted to the CDFG following review and approval of the application by the client. The submittal package will include (a) Form FG 2023, (b) vicinity map, (c) project description, (d) jurisdictional delineation map, and (e) site photos. This task does not include the permit filing fee. Deliverable: 1. Submittal of CDFG 1601 application for a Streambed Alteration Agreement to the CDFG Staff: Gary Medeiros, Associate Principal/Regulatory Services Junior Biologist GIS Specialist Word Processor 25 hours 15 hours 8 hours 8 hou rs Task 4D San Diego Regional Water Quality Control Board Section 401 Certification $5,750.00 A Section 401 of the Clean Water Act certification application will be prepared and submitted to the San Diego RWQCB following review and approval ofthe application by the client. This certification is necessary prior to the USACE concurring with discharges of fill material under the USACE permit process. This task does not include the permit filing fee. Deliverable: 1. Subrnittal of RWQCB 401 application to the RWQCB Staff: Gary Medeiros, Associate Principal/Regulatory Services Junior Biologist GIS Specialist Word Processor Task 4E Resource Agency Permit Processing 25 hours 15 hours 8 hours 8 hours $10,300.00 Regulatory services will include processing of the USACE, the CDFG, and the RWQCB permits, including preparation of correspondence and telephone calls between the agency staff assigned to process the permit. These services also include any meetings with assigned regulatory agency staff during the review process. It is difficult to anticipate all of the processing requirements. Therefore, if this amount is exceeded due to the USACE's or the CDFG's requirement to identify appropriate mitigation associated with project impacts, work shall continue on a time and materials basis, subject to client approval. Deliverable: 1. There is no deliverable for this task Page 12 ~M . ~ -c 0 N S tJ L TIN G RESPONSE TO REQUEST FOR PROPOSAL FOR ENVIRONMENTAL CLEARANCE FOR RONALD REAGAN SPORTS PARK DESILTATlON Staff: Gary Medeiros, Associate Principal/Regulatory Services Senior Biologist GIS Specialist Word Processor 50 hours 20 hours 8 hours 8 hours Total Labor Total Direct Expenses TOTAL LABOR AND DIRECT EXPENSES $64,260.00 $ 3,080.00 $67,340.00 ~M CONSU~ Page 13 RESPONSE TO REQUEST FOR PROPOSAL FOR ENVIRONMENTAL CLEARANCE FOR RONALD REAGAN SPORTS PARK DES/I:. TAT/ON SCHEDULE PRODUCT Project Initiation Environmental Technical Studies Biological Resources Habitat Assessment CECA Clearance Initial Study (IS) submitted to City for review City completes review BonTerra Consulting submits revised IS City completes second review BonTerra Consulting submits proof check IS City completes final review Public review of IS begins Public review of IS ends Public Hearing(s) Regulatory Permit Processes Pre-application field meeting Permit applications 404, 1601, and 401 submitted' 'permits submitted assuming presence of special status species Resource agencies make a determination that package is complete Permit processing period Permits issued DELIVERY DATE October 1 , 2006 October 31 , 2006 December 9, 2006 Decernber 23, 2006 January 7, 2007 January 14, 2007 January 21, 2007 February 1 , 2007 February 8, 2007 March 2, 2007 April 2007 March 2007 April 2007 May 2007 September 2007 September 2007 Page 14 ~~et"hP( CONSULTING"" RESPONSE TO REQUEST FOR PROPOSAL FOR ENVIRONMENTAL CLEARANCE FOR RONALD REAGAN SPORTS PARK DESILTATION BILLING RATE SCHEDULE NAME HOURLY RATE Principal $195 $105 $140 $100-110 $70-85 $85 $75 $70 $65 $65 Project Manager/Biologist Associate Principal/Regulatory Services Senior Biologist Junior Biologist GIS Specialist Editor Ecologist Word Processing Administrative Assistant hli/ert'"!!1 .c 0 N S U L TIN G Page 15 ITEM NO. 30 Approvals City Attorney Director of Finance City Manager ~<" 1//2 ~ TEMECULA COMMUNITY SERVICES DISTRICT AGENDA REPORT TO: General Manager/Board of Directors FROM: Herman D. Parker, Director of Community Services DATE: November 14, 2006 SUBJECT: Renovation at the Temecula Elementary School Pool PREPARED BY: Jerzy Kanigowski, Facility Maintenance Coordinator RECOMMENDATION: That the Board of Directors approve the Agreement with Jeff Kerber Pool Plastering, Inc., for $70.000.00 for the Renovation at the Temecula Elementary School Pool. BACKGROUND: The T.E.S. pool is over 30 years old and because of its age and deterioration it has become very difficult to manage the safety and esthetic appearance of the pool. To improve these items the Community Services Department (TCSD) released a Request for Proposal (RFP) for new pool plaster, new steps, new pool lights and deck depth markers on October 2,2006. Proposal were sent to six (6) qualified pool plastering contractors. The TCSD received two (2) proposals, which were evaluated to determine the qualifications and competitiveness of each Vendor to provide swimming pools plastering services. Jeff Kerber Pool Plastering Inc. was determined to be the lowest qualified bidder to provide the required pool plastering services. FISCAL IMPACT: The cost of the construction contract to provide pool renovation is $54,560.00. Due to the age of this pool an estimated $15,440.00 is being requested for unexpected items discovered during the project. Sufficientfunds have been included in the Capital Improvement Budget in account number 210-190-198 for Fiscal Year 2006-2007. ATTACHMENTS: 1) Contract 2) CIP Project Description Page CITY OF TEMECULA TEMECULA COMMUNITY SERVICES DISTRICT CONTRACT AGREEMENT FOR FISCAL YEAR 2006-2007 POOL RENOVATION THIS MAINTENANCE SERVICES CONTRACT made and entered into as of November 14, 2006 by and between the Temecula Community Services District, ("City") and JEFF KERBER POOL PLASTERING INC. ("Contractor"). In consideration of the mutual covenants and conditions set forth herein, the parties agree as follows: 1. TERM. This Agreement shall commence on November 14, 2006 and shall remain and continue in effect until June 30, 2007 unless sooner terminated pursuant to the provisions of this Agreement. 2. SCOPE OF WORK. Contractor shall perform all of the work described in the Scope of Work, attached hereto and incorporated herein as Exhibit A. ("Work") and shall provide and furnish all the labor, materials, necessary tools, expendable equipment, and all utility and transportation services required for the Work. All of said Work to be performed and materials to be furnished for the Work shall be in strict accordance with the specifications set forth in the Scope of Work. 3. PAYMENT. The City agrees to pay Contractor monthly, in accordance with the payment rates and schedules and terms as set forth in Exhibit B, attached hereto and incorporated herein by this reference as though set forth in full, based upon actual time spent on the above tasks. This amount shall not exceed Seventy Thousand Dollars and no cent ($70,000.00) for the total term of the Agreement unless additional payment or change order is approved as provided in this Agreement. a. Contractor shall submit invoices monthly for actual services performed detailing the work performed in a form acceptable to the Director of Finance. Invoices shall be submitted on or about the first business day of each month, for services provided in the previous month. Payment shall be made within thirty (30) days of receipt of each invoice as to all non- disputed fees. If the City disputes any of contractor's fees it shall give written notice to Contractor within 30 days of receipt of invoice of any disputed fees set forth on the invoice. 4. CHANGE ORDERS. The City Manager may approve additional payment up to ten (10%) of the amount of the Agreement, but in no event shall the total sum of the agreement exceed twenty-five thousand dollars ($25,000.00). Change orders exceeding these limits shall be approved by the City Council. 5. PERFORMANCE. Contractor shall at all time faithfully, competently and to the best of his or her ability, experience, and talent, performs all tasks described herein. Contractor shall employ, at a minimum, generally accepted standards and practices utilized by persons engaged in providing similar services as are required of Contractor hereunder in meeting its obligations under this Agreement. C:\WINDOWS\apsdoc\nettemp\1924\$ASQpdf822206.doc 6. CITY APPROVAL. All labor, materials, tools, equipment, and services shall be furnished and work performed and completed subject to the approval of the City or its authorized representatives. 7. WAIVER OF CLAIMS. On or before making final request for payment under Paragraph 3., above, Contractor shall submit to City, in writing, all claims for compensation under or arising out of this contract; the acceptance by Contractor of the final payment shall constitute a waiver of all claims against the City under or arising out of this Contract except those previously made in writing and request for payment. Contractor shall be required to execute an affidavit, release and indemnify agreement with each claim for payment. 8. PREVAILING WAGES. Pursuant to the provisions of Section 1773 of the Labor Code of the State of California, the City Council has obtained the general prevailing rate of per diem wages and the general rate for holiday and overtime work in this locality for each craft, classification, or type of workman needed to execute this Contractor from the Director of the Department of Industrial Relations. These rates are on file with the City Clerk. Copies may be obtained at cost at the City Clerk's office of Temecula. Contractor shall post a copy of such wage rates at the job site and shall pay the adopted prevailing wage rates as a minimum. Contractor shall comply with the provisions of Sections 1773.8, 1775, 1776, 1777.5, 1777.6, and 1813 of the Labor Code. Pursuant to the provisions of 1775 of the Labor Code, Contractor shall forfeit to the City, as a penalty, the sum of $25.00 for each calendar day, or portion thereof, for each laborer, worker, or mechanic employed, paid less than the stipulated prevailing rates for any work done under this contract, by him or by any subcontractor under him, in violation of the provisions of the Contract. 9. 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 Contractor at least ten (10) days prior written notice. Upon receipt of said notice, the Contractor 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 Contractor 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 Contractor will submit an invoice to the City pursuant to Section 3. 10. DEFAULT OF CONTRACTOR. a. The Contractor's failure to comply with the provisions of this Agreement shall constitute a default. In the event that Contractor is in default for cause under the terms of this Agreement, the City shall have no obligation or duty to continue compensating Contractor for any work performed after the date of default and can terminate this Agreement immediately by written notice to the Contractor. If such failure by the Contractor to make progress in the performance of work hereunder arises out of causes beyond the Contractor's control, and without fault or negligence of the Contractor, it shall not be considered a default. C:\WINDOWS\apsdoc\nettemp\1924\$ASQpdf822206.doc b. If the City Manager or his delegate determines that the Contractor is in default in the performance of any of the terms or conditions of this Agreement, it shall serve the Contractor with written notice of the default. The Contractor 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 Contractor fails to cure its default within such period of time, the City shall have the right, notwithstanding any other provision of this 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. 11. INDEMNIFICATION. The Contractor agrees to defend, indemnify, protect and hold harmless the City, its officers, officials, employees and volunteers from and against any and all claims, demands, losses, defense costs or expenses, or liability of any kind or nature which the City, its officers, agents and employees may sustain or incur or which may be imposed upon them for injury to or death of persons, or damage to property arising out of Contractor's negligent or wrongful acts or omissions in performing or failing to perform under the terms of this Agreement, excepting only liability arising out of the sole negligence of the City. 12. LIABILITY INSURANCE. Contractor 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 hereunder by the Contractor, its agents, representatives, or employees. a. Minimum Scope of Insurance. Coverage shall be at least as broad as: (1) Insurance Services Office Commercial General Liability coverage (occurrence form CG 0001). (2) Insurance Services Office form number CA 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. b. Minimum Limits of Insurance. Contractor shall maintain limits no less than: (1) General Liability: $1,000,000 per occurrence for bodily injury, personal injury and property damage. If Commercial General Liability Insurance or other form 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: $1,000,000 per accident for bodily injury and property damage. (3) Employer's Liability: $1,000,000 per accident for bodily injury or disease. C:\WINDOWS\apsdoc\nettemp\1924\$ASQpdf822206.doc c. Acceptability of Insurers. Insurance is to be placed with insurers with a current AM. Best's rating of no less than AVII, unless otherwise acceptable to the City. d. Verification of Coveraae. Contractor shall furnish 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. All endorsements are to be received and approved by the City before work commences. e. Contractor, by executing this Agreement, hereby certifies: "I am aware of the provision of Section 3700 of the Labor Code which requires every employer to be insured against liability for Workman's Compensation or undertake self-insurance in accordance with the provisions of that Code, and I will comply with such provisions before commencing the performance of the work of this Contract." 13. TIME OF THE ESSENCE. Time is of the essence in this Contract. 14. INDEPENDENT CONTRACTOR. Contractor is and shall at all times remain as to the City a wholly independent contractor. The personnel performing the services under this Agreement on behalf of Contractor shall at all times be under Contractor's exclusive direction and control. Neither the City nor any of its officers, employees or agents shall have control over the conduct of Contractor or any of Contractor's officers, employees or agents, except as set forth in this Agreement. Contractor 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. Contractor shall not incur or have the power to incur any debt, obligation or liability whatever against the City, or bind City in any manner. a. No employee benefits shall be available to Contractor in connection with the performance of this Agreement. Except for the fees paid to Contractor as provided in the Agreement, the City shall not pay salaries, wages, or other compensation to Contractor for performing services hereunder for City. City shall not be liable for compensation or indemnification to Contractor for injury or sickness arising out of performing services hereunder. 15. LEGAL RESPONSIBILITIES. The Contractor shall keep itself informed of State and Federal laws and regulations which in any manner affect those employed by it or in any way affect the performance of its service pursuant to this Agreement. The Contractor 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 Contractor to comply with this section. 16. CONTRACTOR'S INDEPENDENT INVESTIGATION. No plea of ignorance of conditions that exist or that may hereafter exist or of conditions of difficulties that may be encountered in the execution of the work under this Contract, as a result of failure to make the necessary independent examinations and investigations, and no plea of reliance on initial investigations or reports prepared by the City for purposes of letting this Contract out to proposal will be accepted as an excuse for any failure or omission on the part of the Contractor to fulfill in every detail all requirements of this Contract. Nor will such reasons be accepted as a basis for any claims whatsoever for extra compensation or for an extension of time. C:\WINDOWS\apsdoc\nettemp\1924\$ASQpdf822206.doc 17. CONTRACTOR'S AFFIDAVIT. After the completion of the Work contemplated by this Contract, Contractor shall file with the City Manager his affidavit stating that all workmen and persons employed, all firms supplying materials, and all subcontractors on the Work have been paid in full, and that there are no claims outstanding against the project for either labor or materials, except certain items, if any, to be set forth in an affidavit covering disputed claims or items in connection with a Stop Notice which has been filed under the provisions of the laws of the State of California. 18. PROHIBITED INTEREST. No member, officer, or employee of the City of Temecula or of a local public body shall have any interest, direct or indirect, in the contract of the proceeds thereof during his/her tenure or for one year thereafter. Furthermore, the contractor covenants and agrees to their knowledge that no board member, officer or employee of the City of Temecula has any interest, whether contractual, non-contractual, financial or otherwise, in this transaction, or in the business of the contracting party other than the City of Temecula, and that if any such interest comes to the knowledge of either party at any time, a full and complete disclosure of all such information will be made, in writing, to the other party or parties, even if such interest would not be considered a conflict of interest under Article 4 (commencing with Section 1090) or Article 4.6 (commencing with Section 1220) of Division 4 of Title I of the Government Code of the State of California. 19. ENTIRE AGREEMENT. This Agreement contains the entire understanding between the parties relating to the obligations of the parties described 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 independent investigation of any and all facts such party deems material. 20. BOOKS AND RECORDS. Contractor's books, records, and plans or such part thereof as may be engaged in the performance of this Contract, shall at all reasonable times be subject to inspection and audit by any authorized representative of the City. 21. UTILITY LOCATION. The City acknowledges its responsibilities with respect to locating utility facilities pursuant to California Government Code Section 4215. 22. REGIONAL NOTIFICATION CENTERS. Contractor agrees to contact the appropriate regional notification center in accordance with Government Code Section 4215. 23. DISCRIMINATION. Contractor represents that it has not, and agrees that it will not, discriminate in its employment practices on the basis of race, creed, religion, national origin, color, sex, age, or handicap. 24. WRITTEN NOTICE. 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, return 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: C:\WINDOWS\apsdoc\nettemp\1924\$ASQpdf822206.doc To City: City of Temecula 43200 Business Park Drive Temecula, California 92590 Attention: City Manager To Contractor: Jeff Kerber Pool Plastering, Inc. 10735 Kadota Ave. Montclair, CA 91763 (909) 465-0677 Contact Person: Tom Goodman 25. ASSIGNMENT. The Contractor shall not assign the performance of this Agreement, nor any part thereof, nor any monies due hereunder, without prior written consent of the City. 26. LICENSES. At all times during the term of this Agreement, Contractor shall have in full force and effect, all licenses required of it by law for the performance of the services described in this Agreement. 27. GOVERNING LAW. The City and Contractor understand and agree that the laws of the State of California shall govern the rights, obligations, duties and liabilities of the parties to this Agreement and also govern the interpretation of this Agreement. Any litigation concerning this Agreement shall take place in the municipal, superior, or federal City court with jurisdiction over the City of Temecula. 28. ENTIRE AGREEMENT. This Agreement contains the entire understanding between the parties relating to the obligations of the parties described 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 independent investigation of any and all facts such party deems material. 29. AUTHORITY TO EXECUTE THIS AGREEMENT. The person or persons executing this Agreement on behalf of Contractor warrants and represents that he or she has the authority to execute this Agreement on behalf of the Contractor and has the authority to bind Contractor to the performance of its obligations hereunder. C:\WINDOWS\apsdoc\nettemp\1924\$ASQpdf822206.doc IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed the day and year first above written. TEMECULA COMMUNITY SERVICES DISTRICT Jeff Comerchero, President Attest: Susan W. Jones, MMC, City Clerk Approved As to Form: Peter M. Thorson, City Attorney CONTRACTOR Jeff Kerber Pool Plastering, Inc. 10735 Kadota Ave. Montclair, CA 91763 (909) 465-0677 Contact Person: Tom Goodman By: Name: Title: By: Name Title: (Two Signatures Required for Corporations) C:\WINDOWS\apsdoc\nettemp\1924\$ASQpdf822206.doc EXHIBIT" A" CITY OF TEMECULA TEMECULA ELEMENTARY SCHOOL SWIMMING POOL NEW PLASTER, NEW DECK DEPTH/CAUTION MARKERS & NEW POOL LIGHTS SPECIFICATIONS/SCOPE OF WORK 1. Demolition and installation of pool plaster, new deck depth/caution marins and new pool lights please see plans and specifications dated September 26, 2006 by Aquatic Design Group. Demolition/Construction Plans Notes 1 through 16. 2. Job Location: 41951 Moraga Rd. Temecula. 3. City has obtained Health Department Approval. City will pay fees for Building Permits and Health Department Approval. Contractor will be responsible for pulling Building Permit. 4. Work shall start on December 18, 2006 and shall be completed by January 2, 2007. It is understand that the Contractor's Maintenance Period or the Completion of Punch list items may extend beyond the January 2, 2007 deadline. But the primary scope of work including clean up shall be completed on or before January 2, 2007. See Plans and Specifications for Complete Scope of Work C:\WINDOWS\apsdoc\nettemp\1924\$ASQpdf822206.doc EXHIBIT "B" PAYMENT RATES AND SCHEDULE SWIMMING POOL DEMOLITION/CONSTRUCTION DESCRIPTION PRICE Remove existing pool plaster, pool lights and deck depth $50,685.00 markers, install new pool plaster, new pool lights and new deck depth/caution marins, (per plans and specifications) Price based on good condition of existing under ground conduit. ADDITIONAL ALTERNATIVE ITEMS DESCRIPTION PRICE #1. Install white non slip tile in shallow area of pool, (per $2,500.00 construction notes #15) #2. Replace steps at four (4) ladder locations, (per construction $1,375.00 notes #16) Payment shall be made within thirty (30) days of receipt of invoice. The base price for new pool plaster, new deck depth/caution markers & new pool lights is $50,685.00 Additional alternate items price is 3,875.00 The total fix price for new pool plaster and additional items is $54,560.00 Company Name: Signature of Authorize Representative: C:\WINDOWS\apsdoc\nettemp\1924\$ASQpdf822206.doc C:\WINDOWS\apsdoc\nettemp\1924\$ASQpdf822206.doc 10/24/2006 10:25 9094650877 JEFF KERBER POOL PLA PAGE 01 FAX COVER MEMO DATE:Tpesday,October24,2006 COMPANY NAME: City of Temecula RECIPIENTS FAX NUMBER: (951) 506-5163 ATTN: K:asnljowski . FROM: Sandra Bennett ,JEFF KERBER POOL PLASTERING, INC. 10735 Kadota Ave Montclair, CA 91763 TOTAL NUMBER OF PAGES, INCLUDING THIS COVER PAGE: 2 (IF YOU DID NOT RECEIVE ALL OF THE PAGES, PLEASE CALL (909)465-0677) 10/24/2005 10:25 9094550877 JEFF KERBER POOL PLA PAGE 02 !I: A CCiRD;, vi;e~l\'i'fi~G~mEj~itiii[llll,i~jlf:i:tiil~it1llig!'Ejr:'iml!:1if:!f'!:m:! ',l.'i,..j...,..t,',.,..,i.L,~J;;,i~t,li,;",i,:,f,.,i,..m;.:i,l,r.;,;;~,:,!,',:,' OAT.6~;-;~~b'61 ;;;.....n.<<w. <<,..,..,....'''.nm.mw<-:+> ~<:..."'x,,I~~;!~~\<~~.,;.:<~:i,,~;:<'::.:,::)+~:.<:i~:~::ri;",:>!,;.,.;,;::",:,.:,'j!~'\;i;i:~!ii~,,:~:~(, :l"~: .. ,,,,::,~,,,,,,> ,t"";:i:<:'~~:!~~%:;'i;""l, om ",>, _.- ''''''" PIlOOUO'" ' ....., ""..,..., """" ,', '" 909:.4,-6699 ..,.. THIS CERTIFICATE IS ISSUED AS A MATTM OF INFORMATION Allien~ Insurance Services ONLY AND CONFERS NO RI13HTS Ul'ON THE CE!lT'FICATE HOLDER. THIS CERTIFICllTE DOES NoT AMEND. EXTEND OR Jay Freeman AlTER THE COVEllA..E AFFORDED 8Y THE POLICIES 8E~OW. 3270 Inland Empire Blvd, #100 COMPANIES AFFORDING COVERAOE Ontario. CA 91764 OOMPANY A SeaBright Insurance ComptlnV Jeff Kerber Pool Plastering Inc. 10735 Kedota Avenue Montclair CA 91763 , -COMPANY 8 INSURED COMPANY C COMP,4NY o 'P~~~~d\~~j@iEFlir0;i~tEfrLS;jf~~:tE!n[.;~:;:lf.d+an!.~Tm:n;::.~;~~~>mi~nmUffin!~i~~~i1~:tii~~mfN!@~~iiHf1:HmHmmmm:~#HiU(tt(~;~:::'::~;::;::i~f<:i U)WHI]rn:(~!:~~tn)tT/Ett ::':/~\HE};~:!!! THIS IS TO CEFn'IFY THAT THE POUCIES OF INSURANCE I.ISTED BEL.OW HAVE BEEN Issueo TO THE INSUFlED NAMED ABovE FOR THE POLICV PERIOD lNOICATED, NOTWITHSTANDING ANY F1EQUI~EMENi. TERM OR CONDITION OF ANY CONTf:lACT OR OiHER ~OCUM2NT WITH RESPECt TO WHICH THIS CERTIFICATE MAY BE ISSUEO OR MAY PERTAIN, THE INSURANCE AFFORlJED e,v THE POLICIes. OESCAIBEC HElRI!IN IS SUeJECT TO AI.L THE Te:Fl.MS, EXCLUSIONS AND cONomONS OF SUCH POLICI!:;S. UMITS st-lOWN MAY HAVE BeEN REDUCED BV PAID CLAIMS. 00 1"'1'P! OP INSURANce POLICY NUMBER pouev !JlII~TIVI; POUCY !!XPI~AT10N l.IMI1S LT. ClATE (IulMIDDIVY] gATe (MMIDDIYV) ~!P1A1. U,IBIl,.ltv C3ENE~AL ACCRE~TE , COMMERCIAl. GENERAl. uABIUTI PFl'ODUCT~ . cOMPIOP AC3(3 , !",; I CI.AI/lllS MAD!!: o OCCUR PF.FlSONAL & ADV INJI.IFI'v . f-- OWN!R'S & CONTRAC10Fl'~ PROT IiACH OCCURR~CE . I- FIRE DAMAOE (AIW t:l11~ 1ire) , ME!;) IiXP {Anv gna pllreonl . ~TQMQ61U=: UABILJTY eOMBINEC SINGLE LIMIT , - ANY AUTO - ALL OWNED AUiOa eOOILV INJURY jPer pllraonl , - sCHEC'JULEO AUTO!;> - HIRED AUTOS. BODILY INJURY , NON.OWNE.O AUTOS IPtlr;;;:,ccld~tl - t-- PROPERTY DAMAlJl:; . ~"AGe; UiDBluf"l' AUTO ONLY - EA ACCICI:;Ni ~ I-- ANY AUTO OTHER THAN ,AuTO ONLY: f-- EACI-I ACCIOENt , ,AGCl~I;GATE , , excESS L1ABltJTV EACH OCCU~FtENCE . R" uMBAIlLLA FOI'lM AOGAEOAT~ , OTHER il-lAN UMlilfla.l,A FORM , iliJili A 'NORKBRS COI'WIPENliATION AIIICI B81060665 4/30/06 4/30107 x 1~~.rL~~sl ~ EMPI.OV!Rl;'LIM1I.lTY El. .eACH AcOIMNT , 1.000,000 TloIE PROP~IEfORI ~ INCL EL OISEASE - fOLlCY LlMIT , 1.000,000 PARTNERS/EXECuTIvE OFI=ICEA~ ARE: EXCI,. EI. oltiEAtsl!.. EA EMPl,.QvEE , , ,000,000 OTH~~ , ., 0 Dsya Notice for Non-I'DY, D9CI'IIPT10111 OF OPI::!IlATIONBILOCATIONSN~JclSJap~IAL ITEMS Verifictdion of Warkerl!!l' Compensation !)~R]'~1i.~1l~:~~~tf}dS.~;:;~~;~~!r~1ht1:iW~1:i.f:{i;~~m:f;t;::~~~i Wi!iii~;t;i.iffi1:!j! ;l~l!~;n~.~m~mj~rg~~k19~!I~UiifuM~mf:m!l~E~~@~mr j;i~m!mp~#i,~::~:.mG[~f:!!!~~!f@!~jif;;,~~1mfF~%1;;:;r;bl .. Jeff Kerber Pool Plasterins. Inc,""'" 1 0841 Fremont Avenue On~ario, CA 91762 Bt'lDULO ANY OF THE ABOV!: DaCRlBI:!D POLlCIEa eE cANC!!l.LW I3EFCRI!! iHI! IiiXPIRATION DAn: Tt'I~!!OF-. THE VlSLhNO COMP'-'NV WILL !NDEAVOR TO MAIL "30 DAn wAlTT!N NOTICE TO THI!: eMTIFICA1'E HOlDmf N,II.MEO TO 'HI!!: t.efT. ~1JT fAll.IJFI! TO MAIL lJuCH NOTICE' SHALL IMPOSE NO DBUGATION OR 1,,1}lBluTV OF p.ltf KIND upaJljl iME QOMPiIloNY. Ita MeNT$ OR FI!PIIIESENT4.TIVES. 'UT~;r:g~ tUlWjjifq;;n<~J.5nlQli~;;ItXt.::WFmrl:;~;~nf}9Wr.~:~~~tnm~ 1if~))~15~9R'.' >~,~~:Wi9:e~)f.~;:'~~:': !~C6liCi~~~i~n~v;~w~.\~n/~n,:~~idW :,~)!::,~~'~:~:Wf:mW;;E; ::::~H~~:~W: 10/24/2005 10:25 9094550877 JEFF KERBER POOL PLA PAGE 03 WORKERS COMPENSATION AND EMPLOYERS LIABILTY INSURANCE POLICY WC 04 03 06 (Ed. 4-84) WAIVER OF OUR RIGHT TO RECOVER FROM OTHERS ENDORSEMENT-CALIFORNIA We have the right to recover our payments from anyone liable for any injury covered by this policy. We will not end force our right against the person or organization named in the Schedule. (This agreement applies only to the extent that you perform work under, a written contract that requires you to obtain this agreement from US.) You must maintain payroll records accurately segregating the remuneration of your employees while engaged in the work described in the Schedule. The additional premium for this endorsement shall be 5 % of tne California workers' compensation premium otherwise due on such remuneration. Schedule Person or Organization: PER CERTIFICATE ATTACHED Job Description: PER CERTIFICATE ATTACHED This endorsement changes the policy to which it is attached and is effective on the date issued unless otherwise stated. (The information beloW is required only when this endorsement is issued subsequent to preparation of the policy.) Endorsement POlicy No: BB1060665 Effective: 4/30/06 Endorsement No: N/A Insured: Jeff Kerber Pool Plastering, Inc. Policy Effective Date: 4/30/06 Insurance Company: SeaBright Insurance Company ~f.8~ CountersigpedBy: WC 04 03 06 (Ed. 4-84) ACORD,. CERTIFICATE OF LIABILITY INSURANCE OP ID D9 DATE (MM/DDIYYYY) JEFFK-1 09/06/06 PRODUCER nlls CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE RMI Insurance Services, Inc. HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR 220 Technology Drive, #110 ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. Irvine CA 92618 Phone: 949-701-4800 Fax: 949-701-4801 INSURERS AFFORDING COVERAGE NAlC # INSURED INSURER A: Colony National . Insuranc:e CO. INSURER B: Lincoln General Insurance Jeff Kerber Pool Plastering INSURER c: , 10735 Kadota Ave INSURER 0: , Montclair CA 91763 INSURER E: I COVERAGES THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAYBE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. , LT' NS' TYPE OF INSURANCE POLICY NUMBER Poq,,~~~~~fJIfJ!XE Pgkt1:Yc~~b'b~N LIMITS ~NERAL LIABILITY EACH OCCURRENCE $ 1000000 A X COMMERCIAL GENERAL LIABILITY AR6360084 09/oi/06 09/01/07 PREMISES (Ea occurence\ $ 50000 I CLAIMS MADE ~ OCCUR MED EXP (Anyone person) $ EXCLUDED - PERSONAL & ADV INJURY $ 1000000 - GENERAL AGGREGATE $2000000 GEN'L AGGREGATE LIMIT APPLIES PER: PRODUCTS - COMP/OP AGG $ 1000000 "4 In- poo- n POLICY JECT LOC ~TOMOBILE.L1ABILlTY .. COMBINED SINGLE LIMIT B ~ ANY AUTO 6310000935 08/23/06 08/23/07 (Eaaccident) $1,000,000 ALL OWNED AUTOS BODILY INJURY - $ SCHEDULED AUTOS (Per person) - HIRED AUTOS BODILY INJURY - $ , NON-OWNED AUTOS (Per accident) - - PROPERTY DAMAGE $ (Per accident) :gAGE LIABILITY AUTO ONLY. EA ACCIDENT $ ANY AUTO OTHER THAN EAACC $ AUTO ONLY: AGG $ ::5ESS/UMBRELLA LIABILITY EACH OCCURRENCE $ OCCUR 0 CLAIMS MADE AGGREGATE $ $ ==1 DEDUCTIBLE $ RETENTION $ $ , WORKERS COMPENSATION AND IT1)',\'l~~Ws I IOJ~- EMPLOYERS' LIABILITY ANY.PROPRIETQRlPARTNER/EXECUTIVE E.L EACH ACCIDENT $ OFFICER/MEMBER EXCLUDED? E.L. DISEASE - EA EMPLOYEE $ If yes, describe under E.l. DISEASE. POLICY LIMIT $ SPECIAL PROVISIONS below OTHER DESCRIPTION OF OPERATIONS I LOCATIONS I VEHICLES I EXCLUSIONS ADDEO BY ENDORSEMENT I SPECIAL PROVISIONS PROOFOF CANCELLATION SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, THE ISSUING INSURER WILL ENDEAVOR TO MAIL ~ DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT, BUT FAILURE TO DO SO SHALL BLIGATION OR LIABILITY OF ANY KIND UPON THE INSURER, ITS AGENTS OR CERTIFICATE HOLDER Proof Of Insurance @ACORD CORPORATION 1988 ACORD 25 (2001/08) "-,- ~ ~: HI ~ " m ~ ~ ~I 6 ~I " II ,I @\ " ~ fl V> ~ ~ ill ~ ~! o i ~ II 1'1 ,I I II I , , 'I 11 I I _, ..., C Vl :::;- I "0 0 ~' 00_ :J ""'" _. I OQ..q"@ ..... ro (lJ:::; I ~ 3 ~ ro I -< ~ it'-. I .....:::;...., <.n I (!l Q..OJ....... , ~ ~ Q:~ I g if,ro""Q I . :J PJ 0 'I "'" ~" cr c '-'-'~ i1l..Q :g--? I 0 ~ a! 0 , 30..=.:;:- "j ffillg-~ Ci:"iiiAl I a: ~ 2" J& I =;.;~~ 0.' ~ ~~CL~ ~"O 6" 9., gJ :. g. 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'Tj I ii1 ~. < n 0 Vi' ~ r-+ :J _. n , o Vl 0 II 0 ~ 0 ::l ~ O-~W >> 0 o g. 0 !' t-< ro ro ~ ~ ~ r II ~ :r-n:r- ro 0 ro ~ I--! t-< ~ ::l OJ ro ~ c 'Tj ~ UPJV'l i -< n -. 0 -...-+ ::l I ~ 0 ro >-3 ~ ~ ~ ~,., c ~ ~ ~ ~ ro VlOJ ~ s-~~ Vi' (D -0 Z ..... -r-~ Z -- -- 0 g I--! n n ~ CJ ro ro ro >> I ::l ::l ~ ~ ~ ~ I ..... (D CD o' Z ~OJ::l I ~ 0 V1 ~ I n OJ n I ~ 0 .0-0- I ro ~ :;:: :;:: Z Q "" o o t-< OJ n o ::l ~ ill n ~ o ~ II I. I I' I' I I 1 I i Ii lij j~ - \,,;.A)'V'/"SVI '/_V\~ .'V'J ~.,.,.....f.iit" \_1-_~ PROPOSAL & CONTRACT Jeff Kerher Pool !lL!stering. Tnc {"leU'Loca!ioll'06: 10735 Kadota Ave. Montclair, CA 91763 11lR41 Fremont i,v.-nul' ()nta,';(J. (~,\ (11-:-1;2-5912 ,.SIII)I "i(,I1-S\V]!\,] \":"l)'I,,1 (<)()l)1 ,i()~-ilh-:- r'a~ ((JOL)) 'ltl'i-()R-:-":" Lic" S;I:;(1'1-(:-~:) Em:lil: Bit!@.!ert1(ed)l'rXOlll \\\\'\\.JdIKerlll'r,Cl'lll S8M# Buyer/Owner "'"'I eM~LA fiel'-\IGM~I ~Address Job Address 4 \ t::,q I KOIi2A-("'A. 120. - City I ..",.....~lA'-A- Map Page Zip "-IV5SC\ State C!A Office "l<;\ .. GA.""- ~-z. Ex!. Cell Description of Work: Pool -2.40' LF Spa lItA: LF ~plasterD New 0 Drain CEf"6ry -1I~ I ~12\ f ~ 7b bVl->,-r=- I N 1"AS-l- -'$~el"nw;;;: UVDe:tZ-G.MT" Au- -nlAO '_A.'fH..U..>~ Ce;t...>~I...INe: t ~Vl"-l~.~~~' 1 PLA-40Tlil'1Z WI",""" ~t..lDA\Z.D ",."",,-.-.;;0 f'~~ ~'1r:z.. 'D~ pepn.\ MA","","I<!<\2. Tl~ l.,1\-~ ~\ 4 A-r :~Nl~ .t z. p.T" 4 'I-z..' .. I R~ ~ ("'\) T ~9J:..("i) WIT1-I I-\YDI2.=-' ~ n /q e~ ~ e:Q1..l1 vA- ~T' 12-1, ~ 10 Sax!) WA-"TT'" ~~D~ W~,-ci' ~ L.ll.l-\"r? ?",l..'- ~ To -.r-~ 'ElU1L.-O :C~ Z' -.(.-z.-' -.::..s VI!!'I2-I& I"'~ \\lien"" AIr "U~ I,\\lD ~ru..1:!: (\~~ JIS>IN-r ~~l"1'" i'!>IO ~ 50, '-9 ~ I{- ~Dt>ITl~AL. opneNt; lZ/1Z.. 4 ~~ a=~"- '^-11M I. ?,~ \....\~ \ \l14~ ~~L. \~, l<-'? Se=rLt'"rN ~ -z.-.... "-.IOU SL.AP UJl4-I~ -nil~ -?ure-~ ~O~I_\"}M,,~~. ~I"JS"'" FINAL PAYMENT IS DUE UPON COMPLETION OF PLA.STER -ALL PAYMENTS ARE TO BEGIVEN TO CREW FOREMAN ON .THE SAME DAY THE SCOPE OF WORK IS COMPLETED. ALL CHECKS ARE TO BE MADE PAYABLE TO: JEFF KERBER POOL PLASTERING, INC. THIS PROPOSAL IS VALID FOR A 30 DAY PERIOD FROM THE EARLIEST DATE BELOW. THIS IS ONLY APROPOSALAND IS NOT ABINDING CONTRACT ON JEFF KERBER POOLPLASTERING, INC. UNLESS AND UNTIL IT IS SIGNED BY AN OFFICER, DIRECTOR, OR AUTHORIZED EXECUTIVE OF JEFF KERBER POOL PLASTERING; INC. Pyml #4: $ Pyml #5: $ due at due at due at due at Pymt #3: $ due at Pymt #6: $ due at TIME AND MANNER OF COMPLETION: Following execution of this Contract, Owner will be contacted by Contractor with a date for commencement of work. All work shall be completed within 120 days from the date of commencement. Failure to commence work within 20 days from specified date of commencement is a violation of Business & Professions Code Section 7159, Demolition of pool shall be construed as substantial commencement. Start and finish dates are provided on border. ACCEPTANCE & ACKNOWLEDGMENT Owner hereby authorizes Contractor to furnish all materials and labor required to complete the work described herein for which Owner agrees to pay the Contract Price stated and according to the terms and conditiorJs on each page of the Contract. Owner acknowledges, before entering into this Contract, having read paragraph 3, "Arbitration of Dispute", and hereby expressly agrees to that provision, and by signing below agrees to be bound by said provision, whether or not initialed following the provision. Owner acknowledges, before entering into this Contract, having received and read a copy of the Notice to Owner, Notice of Rightto Cancel, Notice of Insurance, Consumer Checklist, and Licensing Notice, copies of which are provided with this Contract. Owner has read and agrees to each provision and term contained on each page of this Contract and any accompanying document. Accepted: X Proposal made by: Registration #: Date of Proposal: \~ \0\n.\ e-r. . . Owner's Signature PROPOSAL AND CONTRACT APPROVED BY: By: X Name & Title: (This Proposal is not a binding contract unless approved and signed here by an officer, director or authorized executive of Jeff Kerber Pool Plastering, Inc. ) The Notice To Owners and Right To Cancel information is incorporated as part of this agreement Z Gl z n r Z 4 n. 0 .~* 8 ~ VI 6iz ;j~Q l.N c:: $:. :j m , :5ii n, ,,' 0 c ~ ~ ~~ ~ tl C/) " ~,Bl ;::0>--1 >--122 O~ ~tL1 tr:IU ----- ----- (J * 095 ;:;::>--1 >-o!j2 bj~ dtr:l Ou Z U ~ tr:I ----- ----- ITEM NO. 31 Approvals City Attorney Director of Finance City Manager ~f'" elL J/ TEMECULA COMMUNITY SERVICES DISTRICT AGENDA REPORT TO: General Manager/Board of Directors FROM: Herman D. Parker, Director of Community Services DATE: November 14, 2006 SUBJECT: Acceptance of Landscape Bonds and Agreement for Deer Hollow Road Parkway PREPARED BY: Barbara Smith, Senior Management Analyst RECOMMENDATION: That the Board of Directors accepts the surety bonds and agreement from Wolf Creek Development, LLC to improve the parkways along Deer Hollow Road. BACKGROUND: The Wolf Creek Development is a large specific plan located in the southwestern portion of the City. Pursuant to the conditions of approval for this development, Standard Pacific Corp is proposing to improve the parkways adjacent to Deer Hollow Road. Landscape plans for these parkways have been reviewed and approved by Temecula Community Services District (TCSD). The acceptance of the bonds and agreement ensure that the landscaping will be installed to TCSD's standard and inspection processes. Once the landscaping is installed and the TCSD has approved the completion of the landscape improvements staff will recommend the appropriate release or reduction of the submitted bonds. TCSD will take over the maintenance responsibilities of the parkways at the beginning of the next fiscal year after acceptance of the landscape improvements. The following is information regarding the bonds provided byThe Continental Insurance Company: 1. Faithful Performance Bond No. 929388895 for $12,044.00 2. Labor and Materials Bond No. 929388895 for $6,022.00 3. Warranty Bond No. 929388895 A for $1 ,204.40 FISCAL IMPACT: None. The cost of construction for the parkways long Deer Hollow Road will be borne by the developer. ATTACHMENTS: Vicinity Map Project Map Agreement/Bonds t\ \ ",' "'WI-~iliiqpi~"~ -...--... . ...........JllfJIIIllldllll.1flU. 'I.J:lIIII>>IUI_~ MAJDjpeJlDeq...._.........~ -""-...-..-.. ftwIllllUO.....UllRI!IUDMJlUItII(J ....- ~~IIIJOJ~_"__ ClUIII4anIp'DlllllJ.P1tO..... .&p\oQ.......P ,..~.:=.~~~...": ;r.~-_Il-""=- ~1IJAm-..,..t;qIflll&ltM\cIII.lItNi IH~ 0ll0l: ' OOOl o 0001 ", UO""A.I8S&N1lIlu8Ip9cl91 . r (f) ,.<no 9UJII8Ill9O. ^ " I s.<I!AIIl6IH / V ,pua691 .d "! " .J .~"'. ". ,. , " "0,.. "'" OU!SBO pUB tJose~ B6UBI.I09d. -,' >':>I::'f'~ .. ,.-\ .- \ :~'.' \. dVW A.LINI3IA 1(0101.13 JIO 1\\ ,- ....... -...... . :r:<":,:^"_~,,-_-j'j-_-_-?:~.-,,:"/:_~.~~_<;:-?-~, _-~_~_,-^ "'"' ,-~~ _~~",_c:.r.-':':""-,;:,';':-'7.c'?::'::~?:_):~:~,,,:,~<'f.:~~_':.-<:<-;::-~~: >--:::"Z.':': ,.'/,- ~ :g:_~:7:. _-~~_c"<"; ~~-Ye':'?:"'^/ ~_~ _~,p.r--,:?;_.~:,__~_.i- /:-:-p.r.~~:~:'j--:-:~ /:,>;:<,~:::7:~:_;::~:,}:~:,::",-:,"?c-C:-::'/;-:-~-_:~~":.i::~>: -;~-"':~::~: "'::~:'";-;-:-::.>::(::--:,':::?::::~~:-,:C:~'::~~':e--:C':/:_' t-T- , DEER HOLLOW ROAD -=~==;-==:J;:,...., ------~ t"F-=..=,,=- _ =~_==:~=:~=~===:~- . SITE KEY MAP ~ ENLARGEMENT. "<-Y SGALe, I" .. 40' PRO..JEGT AREA City Of Temecula Community Services Department 43200 Business Park Dnve. Mailing Address: P,O, Box 9033. Temecula, CA 92589,9033 (951) 694-6480. Fax (951) 694-6488. www,citvoftemecula,oru Deer Hollow Road Parkway - CSD05-0073 $12,044,00 Name of Surety: Address of Surety (street): Address of Surety (city, state, zip): Faithful Performance Bond Labor and Materials Bond Bond for Warranty q'2.q~'6~Bq5 GlZ 0 01.Cf .3 $ 12,044,00 $ 6,022,00 $ 1,204.40 1 R:IKITCHEL, JanetlBondsl05-0073lParkland Landscape Agreementdoc This Agreement is made and entered into by and between the City of Temecula, California, a Municipal Corporation of the State of California, hereinafter referred to as CITY, and the SUBDIVIDER. RECITALS A SUBDIVIDER has presented to CITY for approval and recordation, a final subdivision map of a proposed subdivision pursuant to provisions of the Subdivision Map Act of the State of California and the CITY ordinances and regulations relating to the filing, approval and recordation of subdivision maps, , The Subdivision Map Act and the CITY ordinances and regulations relating to the filing, approval and recordation of subdivision maps are collectively referred to in this Agreement as the "Subdivision Laws," B. A tentative map of the SUBDIVISION has been approved, subject to the Subdivision Laws and to the requirements and conditions contained in the Resolution of Approval. The Resolution of Approval is on file in the Office of the City Clerk and is incorporated into this Agreement by reference, C, SUBDIVIDER is required, as a condition of the approval of the tentative map that the Parkland Improvement plans must be completed, in compliance with City standards, by the Completion Date, The Subdivision Laws establish as a condition precedent to the approval of a final map, that the SUBDIVIDER has entered into a secured Agreement with the CITY to complete the Parkland/Landscape Improvement Plans within the Completion Date, D, In consideration of approval of a final map for the SUBDIVISION by the City Council, SUBDIVIDER desires to enter into this Agreement, whereby promises to install and complete, at SUBDIVIDER'S own expense, all the Parkland/Landscape Improvement work required by City in connection with proposed subdivision. Subdivider has secured this agreement by 2 R:\KITCHEL, JanetIBondsI05-0073\Parkland Landscape Agreementdoc Parkland/Landscaping Improvement Security required by the Subdivision Laws and approved by the City Attorney, The term "Parkland" includes landscape areas intended to be maintained by the Temecula Community Services District E, Complete Parkland/Landscape Improvement Plans for the construction, installation and completion of the Parkland Improvements have been prepared by SUBDIVIDER and approved by the Director of Community Services, The Parkland Improvement Plans numbered as referenced previously in this Agreement are on file in the Office of the Director of Community Services and are incorporated into this Agreement by this reference, All references in this Agreement to the Parkland Improvement Plans shall include reference to any specifications for the Improvements as' approved by the Director of Community Services, F, An estimate of the cost for construction of the Parkland Improvements according to the Improvement Plans has been made and approved by the Director of Community Services, The estimated amount is stated on Page 1 of this Agreement The basis for the estimate is attached as Exhibit "A" to this Agreement G. The CITY has adopted standards for the construction and installation of Parkland/Landscape Improvements within the CITY, The Parkland/Landscape Improvement Plans have been prepared in conformance with the CITY standards, (in effect on the date of approval of the Resolution of Approval), H, SUBDIVIDER recognizes that by approval of the final map for SUBDIVISION, CITY has conferred substantial rights upon SUBDIVIDER, including the right to sell, lease, or finance lots within the SUBDIVISION, and has taken the final act necessary to subdivide the property within the SUBDIVISION. 3 R:\KITCHEL, JanetIBondsI05-0073\Parkland Landscape Agreementdoc As a result, CITY will be damaged to the extent of the cost of installation of the Parkland/Landscape Improvements by SUBDIVIDER'S failure to perform its obligation under this Agreement, including, but not limited to, SUBDIVIDER'S obligation to complete construction of Parkland/Landscape Improvements by the Completion Date. CITY shall be entitled to all remedies available to it pursuant to this Agreement and the Subdivision Laws in the event of a default by SUBDIVIDER. It is specifically recognized that the determination of whether a reversion to acreage or rescission of the SUBDIVISION constitutes an adequate , remedy for default by the SUBDIVIDER shall be within the sole discretion of CITY. NOT, THEREFORE, in consideration of the approval'and recordation by the City Council of the final map of the SUBDIVISION, SUBDIVIDER and CITY agree as follows: 1, SUBDIVIDER'S Obliqations to Construct Parkland/Landscapinq Improvements, SUBDIVIDER Shall: a, Comply with all the requirements of the Resolution of Approval, and any amendments thereto, and with the provisions of the Subdivision Laws, b, Pursuant to the requirements of Labor Code Section 1720, SUBDIVIDER shall pay prevailing wages for all work performed for the construction, alteration, demolition, installation, or repair for the Parkland/Landscape Improvement Work required by this Agreement. In accordance with the provisions of Section 1773 of the Labor Code of the State of California, the City Council has obtained the general prevailing rate of per diem wages and the general rate for holiday and overtime work in this locality for each craft, classification, or type of workman needed to execute this Contractor from the Director of the Department of Industrial Relations, These rates are on file 4 R:IKITCHEL, JanetIBondsI05-0073\Parkland Landscape Agreementdoc with the City Clerk. Copies may be obtained at cost at the City Clerk's office of the City of Temecula. Subdivider shall post a copy of such wage rates at the job site and shall pay the adopted prevailing wage rates as a minimum, Subdivider shall comply with the provisions of Sections 1773,8, 1775, 1776, 1777,5, 1777,6, and 1813 of the Labor Code and other applicable laws and regulations with respect to the payment of prevailing wages, Pursuant to the provisions of 1775 of the Labor Code, Subdivider shall forfeit to the City, as a penalty, the sum of $25,00 for each calendar day, or portion thereof, for each laborer, worker, or mechanic employed, paid less, than the stipulated prevailing rates for any work done under this Agreement, by it or by any subcontractor under it, in violation of the provisions of the Agreement or in violation of any applicable laws or regulations pertaining to the payment of prevailing wages, c, Complete by the time established in Section 20 of this Agreement and at SUBDIVIDER'S own expense, all the Parkland/Landscape Improvement work required on the Tentative Map and Resolution of Approval in conformance with the Parkland Improvement Plans and the CITY standards: d, Furnish the necessary materials for completion of the Parkland Improvements in conformity with the Parkland Improvement Plans and CITY standards, e, Except for easements or other interested in real property to be dedicated to the Homeowners Association of the SUBDIVISION, acquire and dedicate, or pay the cost of acquisition by CITY, of all rights-of-way, easements and other interests in real property for construction or installation of the Parkland/Landscape Improvements, free and clear of all liens and encumbrances for the SUBDIVIDER'S obligations with regard to acquisition by CITY of off-site 5 R:\KITCHEL, JanetIBonds\05-0073\Parkland Landscape Agreementdoc rights-of-way, easements and other interests in real property shall be subject to a separate Agreement between SUBDIVIDER and CITY, 2, Acauisition and Dedication of Easements or Riahts-of-Wav, If any of the Parkland/Landscape Improvements and land development work contemplated by this Agreement are to be constructed or installed on land not owned by SUBDIVIDER, no construction or installation shall be commenced before: a, The offer of dedication to CITY or appropriate rights-of-way, easements or other interest in real property, and appropriate authorization from the property owner to allow construction or installation of the I mprovements or work, or b, The dedication to, and acceptance by, the CITY of appropriate rights-of-way, easements or other interests in real property, and approved by the Department of Public Works, as determined by the Director of Community Services, c, The issuance by a court of competent jurisdiction pursuant to the State Eminent Domain Law of an order of possession. SUBDIVIDER shall comply in all respects with order of possession, Nothing in this Section 2 shall be construed as authorizing or granting an extension of time to SUBDIVIDER. 3, Securitv, SUBDIVIDER shall at all times guarantee SUBDIVIDER'S performance of this Agreement by furnishing to CITY, and maintaining, good and sufficient security as required by the Subdivision Laws on forms approved by CITY for the purposes and in the amounts as follows: a, to assure faithful performance of this Agreement in regard to said improvements in and amount of 100% of the estimated cost of the Parkland/Landscape Improvements; and 6 R:IKITCHEL, JanetlBondsl05-0073\Parkland Landscape AgreemenLdoc b, to secure payment to any contractor, subcontractor, persons renting equipment, or furnishing labor materials for Parkland/Landscape Improvements required to be constructed or installed pursuant to this Agreement in the additional amount of 50% of the estimated cost of the Improvements; and c, to guarantee or warranty the work done pursuant to this Agreement for a period of one year following acceptance thereof by CITY against any defective work or labor done or defective materials furnished in the additional amount of 10% of the estimated cost of the Parkland Improvements, The securities required by this Agreement shall be kept on file with the City Clerk, The terms of the security documents referenced on Page 1 of this Agreement are incorporated into this Agreement by this Reference, If any security is replaced by another approved security, the replacement shall be filed with the City Clerk and, upon filing, shall be deemed to have been made a part of and incorporated into this Agreement Upon filing of a replacement security with the City Clerk, the former security may be released, 4, Alterations to Parkland Improvement Plans, a, Any changes, alterations or additions to the Parkland/Landscape Improvement Plans 'and specifications or to the improvements, not exceeding 10% of the original estimated cost if the improvement, which are mutually agreed upon by the CITY and SUBDIVIDER, shall not relieve the improvement security given for faithful performance of this Agreement In the event such changes, alterations, or additions exceed 10% of the original estimated cost of the improvement, SUBDIVIDER shall provide improvement security for faithful performance as required by Paragraph 3 of this Agreement for 100% of the total estimated cost of the improvement as changed, 7 RIKITCHEL, Janet\BondsI05-0073IParkland Landscape Agreementdoc altered, or amended, minus any completed partial releases allowed by Paragraph 6 of this Agreement b, The SUBDIVIDER shall construct the Parkland Improvements in accordance with the CITY Standards in effect at the time of adoption of the Resolution of Approval. CITY reserves the right to modify the standards applicable to the SUBDIVISION and this Agreement, when necessary to protect the.public health, safety or welfare or comply with applicable State or federal law or CITY zoning ordinances, If SUBDIVIDER requests and is granted an extension of time for completion of the improvements, CITY may apply the standards in effect at the time of the extension, 5, Inspection and Maintenance Period, a, SUBDIVIDER shall obtain City inspection of the Parkland/Landscape Improvements in accordance with the City standards in effect at the time of adoption of the Resolution of Approval. SUBDIVIDER shall at all times maintain proper facilities and safe access for inspection of the Parkland Improvements by CITY inspectors and to the shops wherein any work is in preparation. Upon completion of the work the SUBDIVIDER may request a final inspection by the Director of Community Services, or the Director of Community Service's authorized representative, City Council authorizes the Director of Community Services or the Director of Community Services authorized representative to accept the landscaped medians, perimeter slopes, and parks into the Community Services Maintenance System which is funded by the Parks and Lighting Special Tax, b, SUBDIVIDER shall continue to maintain the Parkland/Landscape Improvements for ninety (90) days after they have been certified completed, No improvements shall be finally accepted unless the 8 RIKITCHEL, JanetlBondsl05-0073lParkland Landscape Agreement.doG maintenance period has expired, and all aspects of the work have been inspected and determined to have been completed in accordance with the Parkland/Landscape Improvement Plans and CITY standards, SUBDIVIDER shall bear all costs of inspection and certification, 6, Release of Securities, Subject to approval by Community Services, the securities required by this Agreement shall be released as follows: a, Security given for faithful performance of any act, obligation, work or Agreement shall be released upon the expiration of the maintenance period and the final completion and acceptance of the act or work, subject to the provisions of subsection (b) hereof. b, The Director of Community Services may release a portion of the security given for faithful performance of improvement work as the Parkland Improvement progresses upon application therefore by the SUBDIVIDER; provided, however, that no such release shall be for an amount less that 25% of the total Parkland Improvement Security given for faithful performance of the improvement work and that the security shall not be reduced to an amount less than 50% of the total Parkland/Landscape Improvement Security given for faithful performance until expiration of the maintenance period and final completion and acceptance of the improvement work, In no event shall the Director of Community Services authorize a release of the Parkland/Landscape Improvement Security, which would reduce such security to an amount below that required to guarantee the completion of the improvement work and any other obligation imposed by this Agreement c, Security given to secure, payment to the contractor, his or her subcontractors and to persons furnishing labor, materials or equipment shall, six months after the completion and acceptance of the work, be reduced to an 9 R:\KITCHEL, JanetIBonds\05-0073\Parkland Landscape Agreementdoc amount equal to the total claimed by all claimants for whom lien have been filed and of which notice has been given to the legislative body, plus an amount reasonable determined by the Director of Community Services to be required to assure the performance of any other obligations secured by the Security, The balance of the security shall be released upon the settlement of all claims and obligations for which the security was given, d. No security given for the guarantee or warranty of work shall be released until the expiration of the warranty period and until any claims filed during the warranty period have been settled, As provided in paragraph 10, the warranty period shall not commence until final acceptance of all work and improvements by the City Council. e, The CITY may retain from any security released, and amount sufficient to cover costs and reasonable expenses and fees, including reasonable attorney's fees, 7, Iniurv to Public Improvements. Public Propertv or Public Utilities Facilities, SUBDIVIDER shall replace or have replaced, or repair or have repaired, as the case may be, all public improvements, publiC utilities facilities and surveying or subdivision monuments which are destroyed or damaged or destroyed by reason of any work done under this Agreement. SUBDIVIDER shall bear the entire cost of replacement or repairs of any and all public property on public utility property damaged or destroyed by reason of any work done, Under this agreement whether such property is owned by the United States or any agency thereof, or the State of California, or any agency or political subdivision thereof, or by the CITY or any public or private utility corporation or by any combination or such owners, Any repair or replacement shall be to the satisfaction, and subject to the approval, of the City Engineer. 10 R:IKITCHEL, JanetIBondsI05-0073\Parkland Landscape Agreementdoc 8, Permits, SUBDIVIDER shall, at SUBDIVIDER'S expense, obtain all necessary permits and licenses for the construction and installation of the improvements, give all necessary notices and pay all fees and taxes required by law, 9, Default of SUBDIVIDER a, default of SUBDIVIDER shall include, but not be limited to, SUBDIVIDER'S failure to timely commence construction pursuant to this Agreement; SUBDIVIDER'S failure to timely commence construction of the Parkland/Landscape Improvements; SUBDIVIDER'S failure to timely cure the defect in the Parkland/Landscape Improvements; SUBDIVIDER'S failure to perform substantial construction work for a period of 20 calendar days after commencement of the work; SUBDIVIDER'S insolvency, appointment of a receiver, or the filing of any petition in bankruptcy either voluntary or involuntary which SUBDIVIDER fails to discharge within thirty (30) days; the commencement of a foreclosure action against the SUBDIVISION or a portion thereof, or any conveyance in lieu or in avoidance of foreclosure; or SUBDIVIDER'S failure to perform any other obligation under this Agreement b, The CITY reserves to itself all remedies available to it at law or in equity for brE3ach of SUBDIVIDER'S obligations under this Agreement The CITY shall have the right, subject to his section, to draw upon or utilize the appropriate security to mitigate CITY damages in event of default by SUBDIVIDER The right of CITY to draw upon or utilize the security is additional to and not in lieu of any other remedy available to CITY, It is speCifically recognized that the estimated costs and security amounts may not reflect the actual cost of construction or installation of Parkland/Landscape Improvements and, therefore, CITY damages for SUBDIVIDER'S default shall be measured by the cost of completing the required improvements. The sums provided by the improvement security may be 11, R:\KITCHEL, Janet\Bonds\05-0073\Parkland Landscape Agreement.doc used by CITY for the completion of the Parkland/Landscape Improvements in accordance with the Parkland/Landscape Improvement Plans and specifications contained herein, In the event of SUBDIVIDER'S default under this Agreement, SUBDIVIDER authorizes CITY to perform such obligation twenty days after mailing written notice of default to SUBDIVIDER and to SUBDIVIDER'S Surety, and agrees to pay the entire cost of such performance by CITY, CITY may take over the work and prosecute the same to completion, by contract or by any other method CITY may deem advisable, for the account and at the expense of SUBDIVIDER, and SUBDIVIDER'S Surety shali be liable to CITY for an excess cost or damages occasioned CITY thereby; and, in such event, CITY without liability for so doing, may take possession of, and utilize in completing the work, such materials, appliances, plan and other property belonging to SUBDIVIDER as may be on the site of the work and necessary for performance of the work, c, Failure of SUBDIVIDER to comply with the terms of this Agreement shall constitute consent to the filing by CITY of a notice of violation against all the lots in the SUBDIVISION, or to rescind the approval or otherwise revert the SUBDIVISION to acreage. The remedy provided by this Subsection C is in addition to and not in lieu of other remedies available to CITY, SUBDIVIDER agrees that the choice of remedy or remedies for SUBDIVIDER'S breach shall be in the discretion of CITY. 12 R:IKITCHEL. JanetlBondsl05-0073lParkland Landscape Agreementdoc d, In the event that SUBDIVIDER fails to perform any obligation hereunder, SUBDIVIDER agrees to pay all costs and expenses incurred by CITY in securing performance of such obligations, including costs of suit and reasonable attorney's fees. e, The failure of CITY to take an enforcement action with respect to a default, or to declare a breach, shall not be construed as a waiver of that default or breach or any subsequent default or breach of SUBDIVIDER 10, Warrantv. SUBDIVIDER shall guarantee or warranty the work done pursuant this Agreement for a period of one year after expiration of the maintenance period and final acceptance by the City Council of the work and improvements against any defective work or labor done or defective materials furnished. Where Parkland/Landscape Improvements are to be constructed in phases or sections, the one year warranty period shall commence after CITY acceptance of the last completed improvement If within the warranty period any work or improvement or part of any work or improvement done, furnished, installed, constructed or caused to be done, furnished, installed or constructed by SUBDIVIDER fails to fulfill any of the requirements of this Agreement or the Parkland/Landscape Improvement Plans and specifications referred to herein, SUBDIVIDER shall without delay and without any cost to CITY, repair or replace or reconstruct any defective or otherwise unsatisfactory part or parts of the work or structure, Should SUBDIVIDER fail to act promptly or in accordance with this requirement, SUBDIVIDER hereby authorizes CITY, at CITY option, to perform the work twenty days after mailing written notice of default to SUBDIVIDER and to SUBDIVIDER'S Surety and agrees to pay the cost of such work by CITY, Should CITY determine that an urgency requires repairs or replacements to be made before SUBDIVIDER can be notified, CITY may, in its sole discretion, make the necessary 13 R:\KITCHEL, JanetIBondsI05-0073\Parkland Landscape Agreementdoc repairs or replacements or perform the necessary work and SUBDIVIDER shall pay to CITY the cost of such repairs, 11, Subdivider Not Aqent of Citv, Neither SUBDIVIDER nor any of SUBDIVIDER'S agents or contractors are or shall be considered to be agents of CITY in connection with the performance of SUBDIVIDER'S obligations under this Agreement. 12, Iniurv to Work, Until such time as the Parkland/Landscape Improvements are accepted by CITY, SUBDIVIDER shall be responsible for and bear the risk of loss to any of the improvements constructed or installed, CITY shall not, nor shall any officer or employee thereof, be liable or responsible for any accident, loss or damage, regardless of cause, happening or occurring to the work or improvements specified in this Agreement prior to the completion and acceptance of the work or improvements. All such risks shall be the responsibility of and are hereby assumed by SUBDIVIDER. 13, Other Aqreements, Nothing contained in this Agreement shall preclude CITY from expending monies pursuant to agreements concurrently or previously executed between the parties, or from entering into agreement with other subdividers for the appointment of costs of water and sewer mains, or other improvements, pursuant to the provisions of the CITY ordinances providing therefore, nor shall anything in this Agreement conimit CITY to any such apportionment. 14, SUBDIVIDER'S Obliqation to Warn Public Durinq Construction. Until final acceptance of the Parkland Improvements, SUBDIVIDER shall give good and adequate warning to the public of each and every dangerous condition existent in said improvements, and will take all reasonClble actions to protect the public from such dangerous condition, 15, Vestinq of Ownership, Upon acceptance of work on behalf of CITY and recordation of the Notice of Completion, ownership of the improvements constructed pursuant to this Agreement shall vest in CITY. 14 R:\KITCHEL, Janet\Bonds\05-0073\Parkland Landscape AgreemenLdoc 16, Final Acceptance of Work, Acceptance of the work on behalf of CITY shall be made by the City Council upon recommendation of the Director of Community Services after final completion and inspection of all Parkland/Landscape Improvements. The Board of Directors shall act upon the Director of Community Services recommendations within thirty (30) days from the date the Director of Community Services certifies that the work has finally completed, as provided in Paragraph 5, Such acceptance shall not constitute a waiver of defects by CITY, 17, Indemnitv/Hold Harmless, CITY or any officer or employee thereof shall not be liable for any injury to persons or property occasioned by reason of the acts 'or omissions of SUBDIVIDER, its agents or employees in the performance of this Agreement SUBDIVIER further agrees to protect and hold harmless CITY, its officials and employees from any and all claims, demands, causes of action, liability or loss of any sort, because of, or arising out of, acts or omissions or SUBDIVIDER, its agents or employees in the performance of this Agreement, including all claims, demands, causes of action, liability, or loss because of, or arising out of, in whole or in part, the design or construction of the Parkland/Landscape Improvements. This indemnification and Agreement to hold harmless shall extend to injuries to persons and damages or taking of property resulting from the design or construction of the Parkland/Landscape Improvements as provided herein, and in addition, to adjacent property owners as a consequence of the diversion of waters from the design or construction of public drainage systems, streets and other public improvements, Acceptance of any of the Parkland/Landscape Improvements shall not constitute any assumption by the CITY of any responsibility for any damage or taking covered by this paragraph, CITY shall not be responsible for the design or construction of the Parkland/Landscape Improvements pursuant to the approved Parkland/Landscape Improvement Plans, regardless of any negligent action or inaction taken by the CITY in approving the plans, unless the 15 R\KITCHEL, JanetIBondsI05-0073\Parkland Landscape Agreementdoc particular improvement design was specifically required by CITY over written objection by SUBDIVIDER submitted to the Director of Community Services before approval of the particular improvement design, which objection indicated that the particular improvement design was dangerous or defective and suggested an alternative safe and feasible design, After acceptance of the Parkland/Landscape Improvements, the SUBDIVIDER shall remain obligated to eliminate any defect in design or dangerous condition caused by the design or construction defect, however, SUBDIVIDER shall not be responsible for routine maintenance, Provisions of this paragraph for Parkland/Landscape Improvements shall remain in full force and effect for ten years following the acceptance by the CITY, It is the intent of this section that SUBDIVIDER shall be responsible for all liability for design and construction of the Parkland/Landscape Improvements installed or work done pursuant to this Agreement and the CITY shall not be liable for any negligence, nonfeasance, misfeasance or malfeasance in approving, reviewing, checking, or c,orrecting any plans or specifications or in approving, reviewing or inspecting any work or construction, The improvement security shall not be required to cover the provision of this paragraph, 18, Sale or Disposition of SUBDIVISION, Sale or other disposition of this property will not relieve SUBDIVIDER from the obligations set forth herein. If SUBDIVIDER sells the property or any portion of the property within the SUBDIVISION to any other person, the SUBDIVIDER may request a novation of this Agreement and a substitution of security, Upon approval of the novation and substitution of securities, the SUBDIVIDER may request a release or reduction of the securities required by this Agreement. Nothing in the novation shall relieve the SUBDIVIDER of the obligations under Paragraph 17 for the work or improvement done by SUBDIVIDER 16 R:IKITCHEL, JanetlBondsl05-0073lParkland Landscape Agreementdoc 19, Time of the Essence, Time is of the essence of this Agreement. 20, Time for Completion of Work Extensions, SUBDIVIDER shall complete construction of the improvements required by this Agreement no later than l23:/Q3:, In the event good cause exists as determined by the City Engineer, and if otherwise permitted under the tentative map condition, the time for completion of the improvements hereunder may be extended, The extension shall be made by writing executed by the Director of Community Services, Any such extension may be granted without notice to SUBDIVIDER'S Surety and shall not affect the validity of this Agreement or release the Surety or Sureties on any security given for this Agreement. The Director of Community Services shall be the sole and final judge as to whether or not good cause has been shown to entitle SUBDIVIDER to an extension, Delay, other than delay in the commencement of work, resulting from an act of CITY, or by an act of God, which SUBDIVIDER could not have reasonably foreseen, or by storm or inclement weather which prevents the conducting of work, or by strikes, boycotts, similar actions by employees or labor organizations, which prevent the conducting or work, and which were not caused by or contributed to by SUBDIVIDER, shall constitute good cause for an extension of time for completion, As a condition of such extension, the Director of Community Services may require SUBDIVIDER to furnish new security guaranteeing performance of this Agreement as extended in an increased amount as necessary to compensate for an increase in construction costs as determined by the Director of Community Services, 21, No Vestinq of Riqhts, Performance by SUBDIVIDER of this Agreement shall not be construed to vest SUBDIVIDER'S rights with respect to any change in any change in any zoning or building law or ordinance, 17 R:\KITCHEL, JanetlBondsl05-0073lParkland Landscape Agreementdoc , 22, Notices, All notices required or provided for under this Agreement shall be in writing and delivered in person or sent by mail, postage prepaid and addressed as provided in this Section, Notice shall be effective on the date it is delivered in person, or, if mailed, on the date of deposit in the United States Mail. Notices shall be addressed as follows unless a written change of address is filed with the City: Notice to CITY: City Clerk City of Temecula 43200 Business Park Drive P,Q, Box 9033 Temecula, CA 92589-9033 Notice to SUBDIVIDER: ~ Name/Address: &~ '1"~~0. ~, '2. 55 e:K'lIJC'flJ 5\.iSE,2.a) CoRoNf\ 0A:- qz.?nq Contact Name: Hh:A~~ 'b")-r\ rrt\- Contact Phone No, qIQ\ ~ ol2...-~ExJO 23, Severabilitv, The provisions of this Agreement are severable, If any portion of this Agreement is held invalid by a court of competent jurisdiction, the remainder of the Agreement shall remain in full force and effect unless amended or modified by the mutual consent of the parties, 24, Captions, The captions of this Agreement are for convenience and reference only and shall' not define, explain, modify, limit, exemplify, or aid in the interpretation, construction or meaning of any provisions of this Agreement. 25, Litigation or Arbitration, In the event that suit or arbitration is brought to enforce the terms of this contract, the prevailing party shall be entitled to litigation costs and reasonable attorney's fees, 18 R:IKITCHEL, Janet\BondsI05-0073IParkland Landscape AgreemenLdoc 26, Incorporation of Recitals, The recitals to this agreement 'are hereby incorporated into the terms of this agreement 27, Legal Responsibilities, The Subdivider shall keep itself informed of all local, State and Federal laws and regulations which in any manner affect those employed by it or in any way affect the performance of its obligations pursuilnt to this Agreement The Subdivider 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 Subdivider to comply with this section, 28, Entire Agreement This Agreement constitutes the entire Agreement of the parties with respect to the subject matter. All modifications, amendments, or waivers of the terms of this Agreement must be in writing and signed by the appropriate representative of the parties, In the case of the CITY, the appropriate party shall be the City Manager. 19 R:\KITCHEL, Janet\Bonds\05-0073\Parkland Landscape Agreement-doc IN WITNESS WHEREOF, this Agreement is executed by CITY, by and through its Mayor. SUBDIVIDER TEMECULA COMMUNITY SERVICES DISTRICT BOARD By:-5 ~ By: Name: D&VUnNn ~ nnRAU~ AUTHORIZED REPRESENTATIVE Name: Jeff Comerchero Title: Title: President By: MAL-~A Name: AUGUST BELMONT AU fHORIZED REPRESENTATIVE Title: (Proper Notarization of SUBDIVIDER'S signature is required and shall be attached) ATTEST: By: Susan W, Jones, MMC, City Clerk RECOMMENDED FOR APPROVAL: By: William G, Hughes, Director of Public Works/City Engineer By: Herman D, Parker Director of Community Services APPROVED AS TO FORM: By: Peter Thorson City Attorney 20 RIKITCHEL, JanetlBondsl05-0073lParkland Landscape Agreementdoc CALIFORNIA ALL-PURPOSE ACKNOWLEDGEMENT County of Riverside } 55. State of California On May 5, 2006 Date before me, Lilia Reyes-Torre, Notary Public Name and Title of Officer personally appeared Raymond E. Dorame and August Belmont ---------------------------------------------------------- o personally known to me D proved to me on the basis of satisfactory evidence J------------J @ LILIA REVES-TORRE .. Commission # 1570893 ~ -iii Notary Public - Callfornla ~ j , , Riverside County t __ __ _ ~:a:m~~res_:A4'~1~2~ to be the person(s) whose name(s) -isIere subscribed to the within instrument and acknowledged to me that4tel<ohe/they executed the same in J,;.;J/I.'V.:their authorized capacity(ies), and that by '-/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. __________________________m_m_________________________------------OPTIONAL-------------------m-m------------______________________m____m Though the information below is not required by Jaw, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. Description of Attached Document Title or Type of Document: Document Date: Number of Pages: Signer(s) Other Than Named Above: Capacity(ies) Claimed by Signer Signer's Name: D Individual o Corporate Officer- Title(s): Authorized Reps, D Partner - ? Limited ? General D Attorney-in-Fact D Trustee D Guardian or Conservalor DOther: RIGHT THUMBPRINT OF SIGNER Signer Is Representing: EXHIBIT A (Attach the basis for the estimate of the cost of improvements,) 21 R:\KITCHEL, Janet\Bonds\05-0073\Parkland Landscape Agreementdoc DEER HOLLOW ROAD PARKWAY LANDSCAPING Statement of Probable Construction Cost Temecula, California January 6, 2006 1. Mobilization 2. Soil Pre aratian I Fine Gradin 3. Construct Concrete Mow Curb 4, 5 Gallon Shrub 5, 1 Gallon Shrub 6, 3" Mulch 1,3005'/, 7. Irri atian- Shrub/Groundcover 8. 90-Da Maintenance 1 1,300 4 78 32 12 1,300 1,300 LS SF LF EA EA CY SF SF Allow $1,00 $13.00 $25,00 $8,00 $35,00 $1,00 $0,15 $5,000,00 $1,300,00 $52,00 $1,950,00 $256.00 $420,00 $1,300,00 $195,00 $10,473.00 $1,570.95 $12,043.95 SUBTOTAL 15% CONTINGENCY TOTAL ASSUMPTIONS: 1. The above cost estimate does not include rough grading, drainage, wall construction and sidewalk construction. 2. Irrigation point of connection stub-out will be provided by Wolf Creek Sports Complex construction. Long term maintenance will be the responsibility of the City, THE ESTIMATE DOES NOT INCLUDE PERMITS OR FEES. RJM HAS PREPARED THIS ESTIMATE OF PROBABLE CONSTRUCTION COST ON THE BASIS OF ITS BEST PROFESSIONAL JUDGMENT AND EXPERIENCE WITH THE CONSTRUCTION MARKET AND CONTRACTOR'S METHODS OF DETERMINING ACTUAL CONSTRUCTION COST. COST OVER WHICH RJM HAS NO CONTROL. IF THE OWNER WISHES GREATER ASSURANCE AS TO THE CONSTRUCTION COST, HE SHALL EMPLOY AN INDEPENDENT COST ESTIMATOR. THE ABOVE STATEMENT OF PROBABLE CONSTRUCTION COSTS IS BASED UPON THE LANDSCAPE CONSTRUCTION PLANS DATED JANUARY 6, 2006 AND IS PREPARED FOR THE CITY'S INFORMATION AND USE TO DETERMINE BOND REQUIREMENTS. Deer Hollow Road Parkway.Statement of Probable Construction Costs- 1/6/2006 10f 1 ~ " CITY OF TEMECULA PARKLAND/LANDSCAPE FAITHFUL PERFORMANCE BOND BO}ID NO. 929388895 PREMIUl1: $60.00/0ne Year WHEREAS, the City of Temecula, State of California, and Standal'd Pacific (hereinafter designated as "Principal") have entered into an Agreement whereby Principal agrees to install and complete certain parkland improvements, which said Agreement, dated, ~- /,$ 2000 and identified as Deer Hollow Road Parkways CSD 05-0073, is hereby referred to and made a part hereof; and WHEREAS, Principal is required under the terms of the Agreement to furnish a bond for the Faithful Performance of the Agreement; NOW, THEREFORE, we the Principal and The Continental Insurance Company as surety, are held and firmly bound unto the City of T emecula, California, in the penal sum of $12,044,00, lawful money of the United States, for the payment of such sum well and truly to be made, we bind ourselves, our heirs, successors, executors and administrators, jointly and severally, The condition of this obligation is such that the obligation shall become null and, lIoid if the above-bounded Principal, his or its heirs, executol.S, administrators, successors, or assigns, shall in all things stand to, abide by, well and truly keep, and perform the covenants, conditions, and provisions in the Agreement and any alteration thereof made as therein provided, on his or their part, to be kept and performed at the time and in the manner therein specified, and in all respects according to his or their true intent and meaning, and shall indemnify and saveharmless the City of Temecula, its officers, agents, and employees, as therein stipulated; otherwise, this obligation shall be and remain in full force and effect, As a part of the obligation secured hereby and in addition to the face amount specified thel"efore, there shall be included costs and reasonable expenses and fees, including reasonable attorney's fees, incurred by City in successfully enforcing such obligation, all to be taxed as costs and included in any judgment rendered, R:\KITCHEL, ,Janel\Bonds\05-0073\paddand l<mdscape faitllful ].'ierfOrm<lllce.doc 03/l 012006 The surety hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of the Agreement or to the work to be performed there under or the specifications accompanying the same shall in anyway affect its obligations on this bond, and it does hereby waive notice of any such change, extension of time, alteration or addition to the terms of the Agreement or the work or to the specifications, IN WITNESS WHEREOF, this instrument has been duly executed by the Principal and Surety above named, on May 5 , 20 06 ($eal) (Seal) By: Company Insurance / PRINCIPAL Standard Pacific Gorp., a Delaware Corporation By: Christine Maestas (I\lame) f~ (Name) RAYMOND E. OORAME AUTHORIZED IlEIt (Title) Attorney-in-Fact (Title) By: ~ AUG~S11!MONT AUTHORIZED REPRESENTATIVE (Title) APPROVED AS TO FORM: Peter Thorson, City Atto!-ney R:\K1TCHEL, J.lJle1\BOtlds:\05-0073\parkJ<ll1d Jnndscr.pc faithful perf0n11am:c.doc 03110(2006 STATE OF California } ss. COUNTY OF OranQe On May 5th, 2006 . before me, Lisa A. Cushing, Notary Public PERSONALl% APPEARED Christine Maestas - . per.ronaJly known to me (or proved to me 011 the basis if satisfat:tory evidence) to be the person(s) whose name( s) is/are subscribed to the with;,. tllstrume1lt and acknowledged to me tMt helshelthey executed the same inhirlherltheir autMria!d capocity(ies,. and that by hislher/their ~. ~~-,--, signature(s, 011 the instrument tbe person(s,. or tbe e1ltiry upon behalf" of which the person(s) acted. executed the instrument \ NQ1Qiy PublIC - CCIIIIC:ImIa WITNESS my hand ami official seal. , ,~~~!;O~202~ @L ----- Sig1lature ~Q,., O. This arM for Official Nolarial Seal OPTIONAL Though the data below Is not required by law, n may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form, CAPACITY CLAIMED BY SIGNER DESCRIPTION OF AlTACHED DOCUMENT o INDIVIDUAL Faithful Performance o CORPORATE OffiCER Bond Number 929388895 TITLE OF 'TYPE OF DOCUMENT TlTlE(S) o PARTNER(S) o LIMITED o GENERAL Two ~ ATTORNEY-IN-FACT NUMBER OF PAGES o TRUSTEE(S) o GUARDIAN/CONSERVATOR D OTHER: ----- May 5th, 2006 ,. DATE OF DOCUMENT SIGNER IS REPRESENTING: NAMEOF"PaISON{S) OR ENTtTV(IES) The Continental fnsurance Company Standard Pacific Corp., a Delaware Corporation SIGNER/51 OTHER THAN NAMED ABOVE ID-1232 (REV, 5/01) ALL-PURPOSE ACKNOWLEDGEMENT CALIFORNIA ALL-PURPOSE ACKNOWLEDGEMENT County of Riverside } 55, State of California On May 5, 2006 Date before me, Lilia Reyes-Torre, Notary Pubiic Name and Title of Officer personailyappeared Raymond E, Dorame and August Belmont --------------------------------------------------- IZI personally known to me o proved to me on the basis of satisfactory evidence ~~-----------f . LILlA ReYES-TORRE , Commission # 1570893 i -,,; Notary Public - California ~ , , Riverside Counly - j ~ ~ ~ ~:":m:.Ex~re~Ap~I:2~9t to be the person(s) whose name(s} .;e/are subscribed to the within instrument and acknowledged to me that flefflhe/they executed the same in -Aielhet'/their authorized capacity(ies), and that by ~/their signature(s) on the instrument the person(s}, or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. ...................................................................-.-OPTIONAL.............................---.---.................................. Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. Description of Attached Document Title or Type of Document: Document Date: Number of Pages: Signer(s) Other Than Named Above: Capacity(ies) Claimed by Signer Signer's Name: o Individuai IZI Corporate Officer- Title(s}: Authorized Reps, o Partner - ? Limited ? Generai o Attorney-in-Fact o Trustee o Guardian or Conservalor o Other: RIGHT THUMBPRINT OF SIGNER Signer Is Representing: BOND NO. 929388895 PREMIUM: IJiCludeiLin;0harge for Performance Bond C!TY OF TEMECULA PARKL.AND/LANDSCAPE LABOR AND MATERIALS BOND WHEREAS, the City of Temecula, State of California, and Standard Pacific, (hereinafter designated as "Principal") have entered into an Agreement whereby Principal agrees to install and complete certain Parkland Improvements, which said Agreement, dated s:- /$ ,20~and identified as Deer Hollow Road Parkways CSD05-0073, is hereby referred to and made a part hereof; and WHEREAS, under the term of said Agreement, Principal is required before entering upon the performance of the work, to file a good and sufficient payment bond with the City of T emecula, to secure the claims to which reference is made in Title 15 (commencing with Section 3082) of Part 4 of Division 3 of the Civil Code of the State of California; and NOW, THEREFORE, we the principal and _ Ih,: Continental Insurance Compomy as Surety, are held and firmly bound unto the City of Temecula, California, and all contractors, subcontractors, iaborers, material men, other persons employed in the performance of the aforesaid Agreement and referred to in Title 15 of the Civil Code, in the penal sum of $6,022,00, lawful money of the United States, for materials furnished or labor thereon of any kind, or for amounts due under the Unemployment Insurance Act with respect to such work or labor, that Surety will pay me same in an amount not exceeding the amount set forth, As a part of the obligation secured hereby and in addition to the face amount specified therefore, there shall be inciuded costs and reasonable expenses. and fees, R:\Oevelopment SeNices Forms\8onds\park!and landscape labor and m.s.terials bond. doc- Page. 1 of 3 including reasonable attorney's fees, incurred by Cify in successfully enforcing such obligation, al! to be taxed as costs and included in any judgment I'endered. It Is hereby expressly stipulated and agreed that this band shall insure to the benefit of any and all persons, companies and corporations entitled to file claims under Title 15 (commencing with Section 3082) of Pali 4 of Division 3 of the Civil Code, so as to give a right of action to them or their assigns in any suit brought upon this bond, If the condition of this bond is fully performed, then this obligation shall become null and void; otherwise, it shall be and remain in full force and effect. The surety hereby stipulates and agrees that no change, extension oftime, alteration or addition to the terms of the Agreement or to the work to be performed there under or the specifications accompanying the same shall in anyway affect its obligations on this bond, and it does hereby waive notice of any such changes, extension of time, alteration or addition to the tNms of the Agreement or to the work or to the specifications. . R:\Development Services FOfl'r.s~Bonds\parklalld landscape labor and materials bond.doc Page 2 01 3 !N WITNESS WHEREOF, this instrument has been duly executed by the Principal ,and Surely above named, on May 5, , 2006 (Seal) (Sea!) SUR By: Company Insurance I PRINCIPAL Standard Pacific Corp., By: ~e Corporation Christine ~aestas (Name) (I'-Jame) RAYMaN!) E. DORAM!! AUTHOI'lIZ&D REPRDlNTATlVE (Title) Attorney-in-Fact (Title) By: " (Name) AUGUST BELMONT AUTHORIZED REPRESENTATNE (Title) APPROVED AS TO FORM: Peter Thorson, City Attomey ~ R:\Development Services Fotms\Bonds\parkland landscape iabor and materials bond.doc Page 3 of 3 CALIFORNIA ALL-PURPOSE ACKNOWLEDGEMENT County of Riverside } ss. State of California On May 5, 2006 Date before me, Lilia Reyes-Torre, Notary Public Name and Title of Officer personally appeared Raymond E, Dorame and August Belmont ----------------------------------------------------- o personally known to me o proved to me on the basis of satisfactory evidence ULIA REVES-TORRE @ commlsslOn#1570893 ~ $ _ ' Notary Public - California ~ ! · Riverside County , My comm. expires Apr19. 2009 to be the person(s) whose name(s) ~are subscribed to the within instrument and acknowiedged to me that.flel&Re/they executed the same in Fii6,'1...../their authorized capacity(ies), and that by _Itheir signature(s) on the instrument the person(s), or the entity upon behaif of which the person(s) acted, executed the instrument. ---------------------------....-.-------------------------------......OPTIONAL...........---.---n------------____.........___......._______________ Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. Description of Attached Document Title or Type of Document: Document Date: Number of Pages: Signer(s) Other Than Named Above: Capacity(ies) Claimed by Signer Signer's Name: o Individual o Corporate Officer- Title(s): Authorized Reps, o Partner - ? Limited ? General o Attorney-in-Fact o Trustee o Guardian or ConservalDr o Other: RIGHT THUMBPRINT OF SIGNER Signer Is Representing: COUNTY OF OranQe } SS. STATE OF California On May 5th, 2006 . before me, Lisa A. Cushing, Notary Public PERSONALLY APPEARED Christine Maestas personally known to me (or proved to me on the basis of satl'ifactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument alld acknowledged to me tlud helshelthey execllted the same in hWherltheir authorized capacity(ie,,), and t1wt by hilvherltheir sigrlatllre(s) on the instrument thR. person(s), or the elltiry IIpon hehaif' ()fwhich the person(s) acted. executed the instrument W1TNESS my haw:! emU. ofJicial.,eal. J.-:.", ~,~~2-1 j Nlillaiv ~ . CcIIIIcQI Orange COl.Il1y , Canm. ExpIIee Jan 10, 201 ---,--------~ _ilo @~ This area for Official Notarial Seal OPTIONAL Though Ihe dala below Is not required by faw, n may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form, CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATIACHED DOCUMENT o INDIVIDUAL o CORPORATEOFACER Labor and Materials Bond Number 929388895 TITlE OF lYPE OF DOCUMENT llTlElSl o PARTNER(S) o LIMITED o GENERAL Three NUMBER OF PAGES D!I ATTORNEY-IN-FACT o TRUSTEE(S) o GUARDIAN/CONSERVATOR o OTHER: May 5th, 2006 DATE OF DOCUMENT SIGNER IS REPRESENTING: ~ OFP1:RSON(S} CVl ENnTVllES} The Continental Insurance Company Standard Pacific Corp., a Delaware Corporation SIGNERfS} OTHER THAN NAMED ABOVE lD,1232 (REV, 5/01) ALGPURPOSEACKNOWLEDGEMENT POWER OF ATTORNEY APPOINTING INDIVIDUAL ATTORNEY-IN-FACT Know All Men By These Presents, That The Continental Insurance Company, a South Carolina corporation. is a duly organized and existing corporation having its principal office in the City of Chicago, and State of Illinois. and that it does by virtue of the signature and seal herein affixed hereby make. constitute and appoint Paul A. Bland, Christine Maestas, Katherine L Tusa, Individually ofIrvine, CA, its true and lawful Attomey(s)-in-Fact withfullpower and authority herebyconferredto sign, seal and execute for and on its behalf bonds. undertakings and other obligatory ins.truments of similar nature - In Unlimited Amounts- and to bind them thereby as fully and to the same extent as if such instruments were signed by a duly authorized officer of the corporation and all the acts of said Attorney, pursuant to the authority hereby given is hereby ratified and confirmed. This Power of Attorney is made and executed pursuant to and by authority of the By~Law and Resolutions, printed on the reverse hereof, duly adopted, as indicated, by the Board of Directors of the corporation. In Witness Whereof, The Continental Insurance Company has caused these presents to be signed by its Senior Vice Preside.nt and its corporate seal to be hereto affixed on this 2nd day of September, 2005, ...i:\NsCi.l". ..lii.~" ~,;;. 11: _ ~.. .:1: -- n: ::z:o ,a. Q: . - ~. ~\,).. ~: ...~ .,.~... ......!....... The Continental Insurance Company State of Illinois, County of Cook, ss: On this 2nd day of September, 2005, before me personally came Michael Gengler to me known, who, being by me duly sworn, did depose and say: that he resides in the City of Chicago, State of Illinois; that he is a Senior Vice President of The Continental Insurance Company, a South Carolina corporation, described in and which executed the above instrument; that he knows the seal of said corporation; that the seal affixed to the said instrument is such corporate seal; that it was so affixed pursuant to authority given by the Board of Directors of said corporation and that he signed his name thereto pursuant to like authority, and acknowledges same to be the act and deed of said corporation. ....................... : .OFACIAL SEAL. : : MARIA M. MEDINA : . NotaryPubfic.....ot-........ : MyComminiOo~3115J01 : ....................... )?t ~~ Maria M. Medina 'n, _ Yn..,v/~ . Notary Public My Commission Expires March 15, 2009 CERTIFICATE I, Mary A. Ribikawskis. Assistant Secretary of The Continental Insurance Company, a South Carolina corporation, do hereby certify that the Power of Attorney herein above set forth is still in force, and further certify that the By-Law and Resolution of the Board of Directors of the corporation printed on the reverse hereof is still in force. In testimony whereof I have hereunto subscribed my name and affixed the seal of the said corporation this 5th day of May ?nn6 ...:~:iN8Ci.&.!.. .~~ ~ i~liic;i;\ :J:: -:.. n: :~ :.:0 0; ~\,).. f: "tj; ,.... ... ~.. .. . 1;. ............. . The Continental Insurance Company Form F6850-11/2001 a~ Assistant Secretary CITY OF TEMECULA BOND NO. 929388895-A PPEMIul1: Included in charge for Performance Bond PARKLAND/LANDSCAPE WARRANTY BOND WHEREAS, the City of Temecula, State of California (hereinafter designated as "City"), and Standard Pacific (hereinaftel' designated as "Principal") have entered into an Agreement whereby Principal agrees to install and complete certain designated Parkland improvements, which said Agreement, dated ~ /$ 20 ()D and identified as Deer Hollow Road Parkways CSD05-0073, is hereby referred to and made a part hereof; and WHEREAS, Principal is required to warranty the work done under the terms of the Agreement for a period of one (1) year following acceptance thereof by City against any defective work or labor done or defective materials furnished, in the amount of ten percent (10%) of the estimated cost of the improvements; Company NOW, THEREFORE, we the Principal and The Continental Insurance I as surety, are held and firmly bound unto the City of Temecu!a, California, in the penal sum of $1,204,00, lawful money of the United States, for the payment of such sum well and truly to be made, we bind ourselves, our heirs, successors, executors and administrators, jointly and severally, The condition of this obiigation is such that the obligation shall become null and void if the above-bounded Principal, his or its heirs, executors, administrators, successors, or assigns shall in ail things stand to, abide by, well and truly !,eep, and perform the covenants, conditions, and provisions in the Agreement and any alteration thereof made as therein provided, on his or their part, to be kept and performed at the time and in the m.anner therein specified, and in all R:\KITCHEL,Janet\Bonds\05-0073\partdand landscape Warranty Bond i.doc Page 1 of 3 I-espects according to his or their true intent and meaning, and shall indemnify and save harmless the City of Temecula, its officers, agents, and employees, as therein stipulated; otherwise, this obligation shall be and remain in full force and effect As a part of the obligation secured hereby and in addition to the face amount specified therefore, there shaH be included costs arid reasonable expenses and fees, including reasonabie attorney's fees, incurred by City in successfully enforcing such obligation, all to be taxed as costs and included in any judgment rendered, The surety hereby stipulates and agrees that no change, extension oftime, alteration or addition to the terms of the Agreement or to the work to be performed hereunder or the specifications accompanying the same shalf in anyway affect its obligations on this bond, and it does hereby waive notice of any such change, extension of time, alteration or addition to the terms of the Agreement or to the work or to the specifications, R:\KITCHEL, Janet\8onds\05-0D73\parkland landscape Warranty }3ond 1.QOC Page 2 of 3 IN WITNESS WHEREOF, this instrument has been duly executed by the Principal and Surety above named, on May 5 ,20~ (Seal) (Seal) By; Company Insurance I PRINCIPAL 8y: Standard Pacific Corp.; ~aware corpo,ration ./ - Christine Maestas (Name) (Name) RAYMOND E. DORAME .. ' AUTHORlZ(:D REPRESENTATIVE (Title) Attorney-in-Fact (Title) By; ~L~ ,,~,. (Name) AUGUST ElELMONT AUTHORIZED REPRESENTATIVE (Title) APPROVED AS TO FORM: Peter Thorson, City Attorney R;\KiTCHEL, Janet\8onds\05-0073\parkland landscape Wammty Bond 1.doc Page 3 of 3 COUNTY OF Orange } ss. STArn OF California On May 5th, 2006 . before me, Lisa A. Cushing, Notary Public PERSONAlLY APPEARED Christine Maestas per.oonally known to me (or proved to me 011 the basis a/satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrometlt am1 oclatowledged to me that helshelthey executed the .tame inhislherhheir authorized capacity(ies), amI thoJ: by his//u>rltheir sigm;<ture(s) on the instrumellt the persan(,.), or the entity upon behalf of which the person(s) acted, executed dze instrument. WITNESS my hood a1ld official seal. ~----~~~----I -f)'" eomUSA,m, liIII<lI,":~ } fII9IOIY PublIc . ~ Qrqnge CculIy CcI'tm. ExpIIII_ ,10.201 ___,_____~4._4 -~'..O.Gk Thi. area for Qlficial Notarial Seal OPTIONAL Though the data below Is not required by law, it may prove valuable 10 persons relying on the document and could prevent fraudulent reattachment of this fonn. CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATIACHED DOCUMENT o INDIVIDUAL o CORPORATE OFACER Warranty Bond Number 929388895 TITLE OF lYPE OF DOCUMENT llTlE(S> o PARTNER(S) o LIMITED o GENERAL Three NUMBER OF PAGES D'!I ATTORNEY-IN-FACT o TRUSTEE(S) o GUARDIAN/CONSERVATOR o OTHER: May 5th, 2006 DATE OF DOCUMENT SIGNER IS REPRESENTING: NAMi:: OfPERSON{S} ~ ENTfTYllES} The Continental Insurance Company standard Pacific Corp., a Delaware Corporation SIGNER(Sl OTHER THAN NAMED ABOVE 10-1232 (REV, 5101l ALGPURPOSEACKNOWLEDGEMENT CALIFORNIA ALL.PURPOSE ACKNOWLEDGEMENT County of Riverside } 55, State of California On May 5, 2006 Date before me, Lilia Reyes-Torre, Notary Public Name and Title of Officer personailyappeared Raymond E. Dorame and August Belmont ------------------------------------------------------ 121 personaily known to me o proved to me on the basis of satisfactory evidence ~------------J @ LILIA REYES-TORRE ~. Commission # 1570893 ~ -. Notary Public - California ~ J Rlverslde County f _ _ _ ~:o:m:..~r~~19.:2~ to be the person(s) whose name(s) 15Iare subscribed to the within instrument and acknowledged to me that.fleleRe/they executed the same in -ftieIRer/their authorized capacity(ies), and that by _Itheir signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument .----....................--..................--.......................OPTIONAL...........--.................................-___.................... Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. Description of Attached Document Title or Type of Document: Document Date: Number of Pages: Signer(s) Other Than Named Above: Capacity(ies) Claimed by Signer Signer's Name: o Individual 121 Corporate Officer- Title(s): Authorized Reps, o Partner -- ? Limited ? General o Attorney-in-Fact o Trustee o Guardian or Conservator o Other: RIGHT THUMBPRINT OF SIGNER Signer Is Representing: POWER OF ATTORNEY APPOINTING INDIVIDUAL ATTORNEY-IN-FACT Know All Men By These Presents, That The Continental Insurance Company. a South Carolina corporation, is a duly organized and existing corporation having its principal office in the City of Chicago, and State of Winois. and that it does by virtue of the signature and seal herein affixed hereby make, constitute and appoint Paul A. B1aud, Christine Maestas, Katherine L Tusa, Individually of Irvine, CA, its 'true and lawful Attorney(s)-in-Fact with full p'ower and authority hereby conferred_to sign, seal and execute for and on its behalf bonds, undertakings and other obligatory instruments of siinilar nature - In Unlimited Amounts- and to bind them thereby as fully and to the same extent as if such instruments were signed by a duly authorized officer of the corporation and all the acts of said Attorney, pursuant to the authority hereby given is hereby ratified and confirmed. This Power of Attorney is made and executed pursuant to and by authority of the By-Law and Resolutions, printed on the reverse hereo(a~1Y adopted, as indicated, by the Board of Directors of the corporation. In Witness Whereof, The Continental Insurance Company has caused these presents to be signed by its Senior Vice President and its corporate seal to be hereto affixed on this 2nd day of September, 2005, ........ ..~~\..lN8ciJ.... ;t.~~.,;. :~ - ~\ :J:: -.. .. ::ZOB ,~ BE . .. 1:. ~ - ..,. \~ ~'f.l ......~...... The Continental Insurance Company State ofIllinois, County of Cook, ss: On this 2nd day of September, 2005, before me personally came Michael Gengler to me known, who, being by me duly sworn, did depose and say: that he resides in the City of Chicago, State of Illinois; that he is a Senior Vice President of The Continental Insurance Company, a South Carolina corporation, described in and which executed the above instrument; that he knows the seal of said corporation; that the seal affixed to the said instrument is such corporate seal; that it was so affixed pursuant to authority given by the Board of Directors of said corporation and that he signed his name thereto pursuant to like authority, and acknowledges same to be the act and deed of said corporation. ....................... : "OFFICIAL SEAL. : : MARlA M. MEDINA : . Notafy PulIIIcl. $taM of.... . : My CommiIIIon,ExpM, 3115JD1 : ....................... >> ~ JaU-I Maria M, Medina ""' . "Yr...ut~ - Notary Public My Commission Expires March 15,2009 CERTIFICATE I, Mary A. Ribikawskis, Assistant Secretary of The Continental Insurance Company, a South Carolina corporation, do hereby certifY that the Power of Attorney herein above set forth is still in force, and further certifY that the By-Law and Resolution of the Board of Directors of the corporation printed on the reverse hereof is still in force. In testimony whereof I have hereunto subscribed my name and affixed the seal of the said corporation this 5th day of May . 2006 ........ ...;i~\..lN8ci~ !?H~\ :1:: -.. n" :~ ,= 0: ~~ = II ...~ ...~... ......~....... The Continental Insurance Company Form F6850-11/2001 a~ Assistant Secretary ITEM NO. 32 Approvals City Attorney Director of Finance City Manager ~ CIl Jjl- TEMECULA COMMUNITY SERVICES DISTRICT AGENDA REPORT TO: General Manager/Board of Directors FROM: Herman D, Parker, Director of Community Services DATE: November 14, 2006 SUBJECT: Acceptance of Landscape Bonds and Agreement for Butterfield Ranch Landscaped Medians PREPARED BY: Barbara Smith, Senior Management Analyst RECOMMENDATION: That the Board of Directors accepts the surety bonds and agreement from BRSC, LLC to improve the landscaped medians on State Highway 79 South and Butterfield Stage Road, BACKGROUND: BRSC, LLC is developing a retail and storage facility called the Butterfield Ranch, located on the southeast corner of State Highway 79 South and Butterfield Stage Road, As a condition of approval for this project, BRSC is required to make certain road improvements adjacent to their site, These road improvements includes two landscaped medians one on State Highway 79 South and the other on Butterfield Stage Road, BRSC has prepared landscape plans that have been reviewed and approved by Temecula Community Services District (TCSD) and submitted bonds with an agreementto guarantee the construction of the medians, The acceptance of the bonds and agreement ensure that the landscaping in the medians will be installed to TCSD's standards and inspection processes, Once the landscaping is installed and the TCSD has approved the completion of the landscaped medians, TCSD will take over the maintenance and staff will recommend the appropriate release or reduction of the submitted bonds, The following is information regarding the bonds provided by Developers Surety & Indemnity Co,: 1, Faithful Performance Bond No, 7315685 for $ 79,478,50 2, Labor and Materials Bond No, 7315685 for $ 39,739.25 3, Warranty Bond No, 7315685 for $ 7,947,85 FISCAL IMPACT: borne by the developer. None, The cost of construction for the landscaped medians will be ATTACHMENTS: Vicinity/Project Maps Agreement/Bonds s,,,Gt ~o~ ~~t~'f~\JJ ra. ~ ~ ~ ~ ~ ~ ~ ~ 'f,! O\fo~ 'VZMt '" ... HVN 79 ~ 03 'E-t t.) ~ o g: r::>~ ~ <l.~ ~ (Luj <(.-: ~Z ~ Z o 5> Project Map i a.; ~ ~It , ~ & CIl ~ '"'3 ,0 "'J ;g o lii n '"'3 ~ o o n srA<J!! ROAD IlItl.. . - City Of Temecula Community Services Department 43200 Business Park Onve. Mailin9 Address: P,O, Box 9033 . Temecula, CA 92589-9033 (951) 694-6480 . Fax (95t) 694-6488 . www,citvoftemecula,oro Address of Subdivider (street): Address of Subdivider (city, state, zip): Contact: Mark P, Esbensen Phone Number: (951) 491-6300 41623 Margarita Road, Suite 100 T emecula, CA 92591 Title: President MPE Development Inc Its Manager Fax Number: (951) 491-6330 Ie-Cd ~k. 'W\Edlou5 Tract No,: Parkland/Landscape Improvement Plans No,: Referred to as "Landscape 1m rovements" c.s.t> 0$ - OC 77 $79,478,50 Name of Surety: Address of Surety (street): Faithful Performance Bond Labor and Materials Bond Bond for Warranty 7 IS ~ Y 5 515,,<[5 7.:B /S(, 1"..5 $ 79,478,50 $ 39,739.25 $ 7,947,85 1 R:\Development Services Fonns\Bonds\Parkland Landscape Agreement.doc This Agreement is made and entered into by and between the City of Temecula, California, a Municipal Corporation of the State of California, hereinafter referred to as CITY, and the SUBDIVIDER. RECITALS A SUBDIVIDER has presented to CITY for approval and recordation, a final subdivision map of a proposed subdivision pursuant to provisions of the Subdivision Map Act of the State of California and the CITY ordinances and regulations relating to the filing, approval and recordation of subdivision maps, The Subdivision Map Act and the CITY ordinances and regulations relating to the filing, approval and recordation of subdivision maps are collectively referred to in this Agreement as the "Subdivision Laws," B, A tentative map of the SUBDIVISION has been approved, subject to the Subdivision Laws and to the requirements and conditions contained in the Resolution of Approval. The Resolution of Approval is on file in the Office of the City Clerk and is incorporated into this Agreement by reference, C, SUBDIVIDER is required, as a condition of the approval of the tentative map that the Parkland Improvement plans must be completed, in compliance with City standards, by the Completion Date. The Subdivision Laws establish as a condition precedent to the approval, of a final map, that the SUBDIVIDER has entered into a secured Agreement with the CITY to complete the Parkland/Landscape Improvement Plans within the Completion Date. D, In consideration of approval of a final map for the SUBDIVISION by the City Council, SUBDIVIDER desires to enter into this Agreement, whereby promises to install and complete, at SUBDIVIDER'S own expense, all the Parkland/Landscape Improvement work required by City in connection with proposed subdivision, Subdivider has secured this agreement by 2 R:\Development Services Forms\Bonds\Parkland Landscape Agreement.doc Parkland/Landscaping Improvement Security required by the Subdivision Laws and approved by the City Attorney, The term "Parkland" includes landscape areas intended to be maintained by the Temecula Community Services District. E. Complete Parkland/Landscape Improvement Plans for the construction, installation and completion of the Parkland Improvements have been prepared by SUBDIVIDER and approved by the Director of Community Services, The Parkland Improvement Plans numbered as referenced previously in this Agreement are on file in the Office of the Director of Community Services and are incorporated into this Agreement by this reference. All references in this Agreement to the Parkland Improvement Plans shall include reference to any specifications for the Improvements as approved by the Director of Community Services, F, An estimate of the cost for construction of the Parkland Improvements according to the Improvement Plans has been made and approved by the Director of Community Services, The estimated amount is stated on Page 1 of this Agreement. The basis for the estimate is attached as Exhibit "A" to this Agreement. G, The CITY has adopted standards for the construction and installation of Parkland/Landscape Improvements within the CITY, The Parkland/Landscape Improvement Plans have been prepared in conformance with the CITY standards, (in effect on the date of approval of the Resolution of Approval), H. SUBDIVIDER recognizes that by approval of the final map for SUBDIVISION, CITY has conferred substantial rights upon SUBDIVIDER, including the right to sell, lease, or finance lots within the SUBDIVISION, and has taken the final act necessary to subdivide the property within the SUBDIVISION, 3 R:\Development Services Forms\Bonds\Parkland Landscape Agreement.doc NOT, THEREFORE, in consideration of the approval and recordation by the City Council of the final map of the SUBDIVISION, SUBDIVIDER and CITY agree as follows: 1, SUBDIVIDER'S Obliaations to Construct Parkland/Landscapina Improvements, SUBDIVIDER Shall: a, Comply with all the requirements of the Resolution of Approval, and any amendments thereto, and with the provisions of the Subdivision Laws, b. Pursuant to the requirements of Labor Code Section 1720, SUBDIVIDER shall pay prevailing wages for all work performed for the construction, alteration, demolition, installation, or repair for the Parkland/Landscape Improvement Work required by this Agreement In accordance with the provisions of Section 1773 of the Labor Code of the State of California, the City CouncU has obtained the general prevailing rate of per diem wages and the general rate for holiday and overtime work in this locality for each craft, classification, or type of workman needed to execute this Contractor from the Director of the Department of Industrial Relations, These rates are on file 4 R:\DeveJopment Services Forms\Bonds\Parkland Landscape Agreement.doc with the City Clerk, Copies may be obtained at cost at the City Clerk's office of the City of Temecula, Subdivider shall post a copy of such wage rates at the job site and shall pay the adopted prevailing wage rates as a minimum, Subdivider shall comply with the provisions of Sections 1773,8, 1775, 1776, 1777,5, 1777,6, and 1813 of the Labor Code and other applicable laws and regulations with respect to the payment of prevailing wages, Pursuant to the provisions of 1775 of the Labor Code, Subdivider shall forfeit to the City, as a penalty, the sum of $25,00 for each calendar day, or portion thereof, for each laborer, worker, or mechanic employed, paid less, than the stipulated prevailing rates for any work done under this Agreement, by it or by any subcontractor under it, in violation of the provisions of the Agreement or in violation of any applicable laws or regulations pertaining to the payment of prevailing wages, c, Complete by the time established in Section 20 of this Agreement and at SUBDIVIDER'S own expense, all the Parkland/Landscape Improvement work required on the Tentative Map and Resolution of Approval in conformance with the Parkland Improvement Plans and the CITY standards: d, Furnish the necessary materials for completion of the Parkland Improvements in conformity with the Parkland Improvement Plans and CITY standards, e, Except for easements or other interested in real property to be dedicated to the Homeowners Association of the SUBDIVISION, acquire and dedicate, or pay the cost of acquisition by CITY, of all rights-of-way, easements and other interests in real property for construction or installation of the Parkland/Landscape Improvements, free and clear of all liens and encumbrances for the SUBDIVIDER'S obligations with regard to acquisition by CITY of off-site 5 R:\De.veJopment Services Forms\Bonds\Parkland Landscape Agreement.doc rights-of-way, easements and other interests in real property shall be subject to a separate Agreement between SUBDIVIDER and CITY, 2. Acauisition and Dedication of Easements or Riahts-of-Way, If any of the Parkland/Landscape Improvements and land development work contemplated by this Agreement are to be constructed or installed on land not owned by SUBDIVIDER, no construction or installation shall be commenced before: a. The offer of dedication to CITY or appropriate rights-of-way, easements or other interest in real property, and appropriate authorization from the property owner to allow construction or installation of the Improvements or work, or b, The dedication to, and acceptance by, the CITY of appropriate rights-of-way, easements or other interests in real property, and approved by the Department of Public Works, as determined by the Director of Community SeNices, c, The issuance by a court of competent jurisdiction pursuant to the State Eminent Domain Law of an order of possession, SUBDIVIDER shall comply in all respects with order of possession. Nothing in this Section 2 shall be construed as authorizing or granting an extension of time to SUBDIVIDER 3, Security, SUBDIVIDER shall at all times guarantee SUBDIVIDER'S performance of this Agreement by furnishing to CITY, and maintaining, good and sufficient security as required by the Subdivision Laws on forms approved by CITY for the purposes and in the amounts as follows: a, to assure faithful performance of this Agreement in regard to said improvements in and amount of 100% of the estimated cost of the Parkland/Landscape Improvements; and 6 R:\Development Services Forms\Bonds\Parkland Landscape Agreement.doc b, to secure payment to any contractor, subcontractor, persons renting equipment, or furnishing labor materials for Parkland/Landscape Improvements required to be constructed or installed pursuant to this Agreement in the additional amount of 50% of the estimated cost of the Improvements; and c, to guarantee or, warranty the work done pursuant to this Agreement for a period of one year following acceptance thereof by CITY against any defective work or labor done or defective materials furnished in the additional amount of 10% of the estimated cost of the Parkland Improvements, The securities required by this Agreement shall be kept on file with the City Clerk. The terms of the security documents referenced on Page 1 of this Agreement are incorporated into this Agreement by this Reference, If any security is replaced by another approved security, the replacement shall be filed with the City Clerk and, upon filing, shall be deemed to have been made a part of and incorporated into this Agreement Upon filing of a replacement security with the City Clerk, the former security may be released, 4, Alterations to Parkland Improvement Plans, a, Any changes, alterations or additions to the Parkland/Landscape Improvement Plans and specifications or to the improvements, not exceeding 10% of the original estimated cost if the improvement, which are mutually agreed upon by the CITY and SUBDIVIDER, shall not relieve the improvement security given for faithful performance of this Agreement In the event such changes, alterations, or additions exceed 10% of the original estimated cost of the improvement, SUBDIVIDER shall provide improvement security for faithful performance as required by Paragraph 3 of this Agreement for 100% of the total estimated cost of the improvement as changed, 7 R:\Development Services Forms\Bonds\Parkland Landscape Agreement.doc altered, or amended, minus any completed partial releases allowed by Paragraph 6 of this Agreement b, The SUBDIVIDER shall construct the Parkland Improvements in accordance with the CITY Standards in effect at the time of adoption of the Resolution of Approval. CITY reserves the right to modify the standards applicable to the SUBDIVISION and this Agreement, when necessary to protect the public health, safety or welfare or comply with applicable State or federal law or CITY zoning ordinances, If SUBDIVIDER requests and is granted an extension of time for completion of the improvements, CITY may apply the standards in effect at the time of the extension, 5. Inspection and Maintenance Period, a, SUBDIVIDER shall obtain City inspection of the Parkland/Landscape Improvements in accordance with the City standards in effect at the time of adoption of the Resolution of Approval. SUBDIVIDER shall at all times maintain proper facilities and safe access for inspection of the Parkland Improvements by CITY inspectors and to the shops wherein any work is in preparation, Upon completion of the work the SUBDIVIDER may request a final inspection by the Director of Community Services, or the Director of Community Service's authorized representative, City Council authorizes the Director of Community Services or the Director of Community Services authorized representative to accept the landscaped medians, perimeter slopes, and parks into the Community Services Maintenance System which is funded by the Parks and Lighting Special Tax. b, SUBDIVIDER shall continue to maintain the Parkland/Landscape Improvements for ninety (90) days after they have been certified completed, No improvements shall be finally accepted unless the 8 R:\Development Services Forms\Bonds\Parkland Landscape Agreement.doc maintenance period has expired, and all aspects of the work have been inspected and determined to have been completed in accordance with the Parkland/Landscape Improvement Plans and CITY standards, SUBDIVIDER shall bear all costs of inspection and certification, 6, Release of Securities, Subject to approval by Community Services, the securities required by this Agreement shall be released as follows: a, Security given for faithful performance of any act, obligation, work or Agreement shall be released upon the expiration of the maintenance period and the final completion and acceptance of the act or work, subject to the provisions of subsection (b) hereof, b, The Director of Community Services may release a portion of the security given for faithful performance of improvement work as the Parkland Improvement progresses upon application therefore by the SUBDIVIDER; provided, however, that no such release shall be for an amount less that 25% of the total Parkland Improvement Security given for faithful performance of the improvement work and that the security shall not be reduced to an amount les's than 50% of the total Parkland/Landscape Improvement Security given for faithful performance until expiration of the maintenance period and final completion and acceptance of the improvement work, In no event shall the Director of Community Services authorize a release of the Parkland/Landscape Improvement Security, which would reduce such security to an amount below that required to guarantee the completion of the improvement work and any other obligation imposed by this Agreement c, Security given to secure payment to the contractor, his or her subcontractors and to persons furnishing labor, materials or equipment shall, six months after the completion and acceptance of the work, be reduced to an 9 R:\Development Services Forms\Bonds\Parkland Landscape Agreement.doc amount equal to the total claimed by all claimants for whom lien have been filed and of which notice has been given to the legislative body, plus an amount reasonable determined by the Director of Community Services to be required to assure the performance of any other obligations secured by the Security, The balance of the security shall be released upon the settlement of all claims and obligations for which the security was given, d, No security given for the guarantee or warranty of work shall be released until the expiration of the warranty period and until any claims filed during the warranty period have been settled, As provided in paragraph 10, the warranty period shall not commence until final acceptance of all work and improvements by the City Council. e, The CITY may retain from any security released, and amount sufficient to cover costs and reasonable expenses and fees, including reasonable attorney's fees, 7, Iniury to Public Improvements. Public Property or Public Utilities Facilities, SUBDIVIDER shall replace or have replaced, or repair or have repaired, as the case may be, all public improvements, public utilities facilities and surveying or subdivision monuments which are destroyed or damaged or destroyed by reason of any work done under this Agreement. SUBDIVIDER shall bear the entire cost of replacement or repairs of any and all public property on public utility property damaged or destroyed by reason of any work done, Under this agreement whether such property is owned by the United States or any agency thereof, or the State of California, or any agency or political subdivision thereof, or by the CITY or any public or private utility corporation or by any combination or such owners, Any repair or replacement shall be to the satisfaction, and subject to the approval, of the City Engineer. 10 R:\Development Services Forms\Bonds\Parkland Landscape Agreement.doc 8, Permits, SUBDIVIDER shall, at SUBDIVIDER'S expense, obtain all necessary permits and licenses for the, construction and installation of the improvements, give all necessary notices and pay all fees and taxes required by law, 9, Default of SUBDIVIDER a, default of SUBDIVIDER shall include, but not be limited to, SUBDIVIDER'S failure to timely commence construction pursuant to this Agreement; SUBDIVIDER'S failure to timely commence construction of the Parkland/Landscape Improvements; SUBDIVIDER'S failure to timely cure the defect in the Parkland/Landscape Improvements; SUBDIVIDER'S failure to perform substantial construction work for a period of 20 calendar days after commencement of the work; SUBDIVIDER'S insolvency, appointment of a receiver, or the filing of any petition in bankruptcy either voluntary or involuntary which SUBDIVIDER fails to discharge within thirty (30) days; the commencement of a foreclosure action against the SUBDIVISION or a portion thereof, or any conveyance in lieu or in avoidance of foreclosure; or SUBDIVIDER'S failure to perform any other obligation under this Agreement b, The CITY reserves to itself all remedies available to it at law or in equity for breach of SUBDIVIDER'S obligations under this Agreement The CITY shall have the right, subject to his section, to draw upon or utilize the appropriate security to mitigate CITY damages in event of default by SUBDIVIDER The right of CITY to draw upon or utilize the security is additional to and not in lieu of any other remedy available to CITY. It is specifically recognized that the estimated costs and security amounts may not reflect the actual cost of construction or installation of Parkland/Landscape Improvements and, therefore, CITY damages for SUBDIVIDER'S default shall be measured by the cost of completing the required improvements, The sums provided by the improvement security may be 11 R:\Development Services Forms\Bonds\Parkland Landscape Agreement.doc used by CITY for the completion of the Parkland/Landscape Improvements in accordance with the Parkland/Landscape Improvement Plans and specifications contained herein, In the event of SUBDIVIDER'S default under this Agreement, SUBDIVIDER authorizes CITY to perform such obligation twenty days after mailing written notice of default to SUBDIVIDER and to SUBDIVIDER'S Surety, and agrees to pay the entire cost of such performance by CITY, CITY may take over the work and prosecute the same to completion, by contract or by any other , method CITY may deem advisable, for the account and at the expense of SUBDIVIDER, and SUBDIVIDER'S Surety shall be liable to CITY for an excess cost or damages occasioned CITY thereby; and, in such event, CITY without liability for so doing, may take possession of, and utilize in completing the work, such materials, appliances, plan and other property belonging to SUBDIVIDER as may be on the site of the work and necessary for performance of the work, c, Failure of SUBDIVIDER to comply with the terms of this Agreement shall constitute consent to the filing by CITY of a notice of violation against all the lots in the SUBDIVISION, or to rescind the approval or otherwise reVert the SUBDIVISION to acreage, The remedy provided by this Subsection C is in addition to and not in lieu of other remedies available to CITY. SUBDIVIDER agrees that the choice of remedy or remedies for SUBDIVIDER'S breach shall be in the discretion of CITY, 12 R\DeveJopment Services Forms\Bonds\Parkland Landscape Agreement.doc d. In the event that SUBDIVIDER fails to perform any obligation hereunder, SUBDIVIDER agrees to pay all costs and expenses incurred by CITY in securing performance of such obligations, including costs of suit and , reasonable attorney's fees, . e, The failure of CITY to take an enforcement action with respect to a default, or to declare a breach, shall not be construed as a waiver of that default or breach or any subsequent default or breach of SUBDIVIDER 10, Warrantv, SUBDIVIDER shall guarantee or warranty the work done pursuant this Agreement for a period of one year after expiration of the maintenance period and final acceptance by the City Council of the work and improvements against any defective work or labor done or defective materials furnished, Where Parkland/Landscape Improvements are to be constructed in phases or sections, the one year warranty period shall commence after CITY acceptance of the last completed improvement. If within the warranty period any work or improvement or part of any work or improvement done, furnished, installed, constructed or caused to be done, furnished, installed or constructed by SUBDIVIDER fails to fulfill any of the requirements of this Agreement or the Parkland/Landscape Improvement Plans and specifications referred to herein, SUBDIVIDER shall without delay and without any cost to CITY, repair or replace or reconstruct any defective or otherwise unsatisfactory part or parts of the work or structure. Should SUBDIVIDER fail to act promptly or in accordance with this requirement, SUBDIVIDER hereby authorizes CITY, at CITY option, to perform the work twenty days after mailing written notice of default to SUBDIVIDER and to SUBDIVIDER'S Surety and agrees to pay the cost of such work by CITY, Should CITY determine that an urgency requires repairs or replacements to be made before SUBDIVIDER can be notified, CITY may, in its sole discretion, make the necessary 13 R:\Development Services Forms\Bonds\Parkland Landscape Agreement.doc repairs or replacements or perform the necessary work and SUBDIVIDER shall pay to CITY the cost of such repairs, 11, Subdivider Not Aqent of City, Neither SUBDIVIDER nor any of SUBDIVIDER'S agents or contractors are or shall be considered to be agents of CITY in connection with the performance of SUBDIVIDER'S obligations under this Agreement. 12, Iniury to Work, Until &uch time as the Parkland/Landscape Improvements are accepted by CITY, SUBDIVIDER shall be responSible for and bear the risk of loss to any of the improvements constructed or installed, CITY shall not, nor shall any officer or employee thereof, be liable or responsible for any accident, loss or damage, regardless of cause, happening or occurring to the work or improvements specified in this Agreement prior to the completion and acceptance of the work or improvements, All such risks shall be the responsibility of and are hereby assumed by SUBDIVIDER 13, Other Aqreements, Nothing contained in this Agreement shall preclude CITY from expending monies pursuant to agreements concurrently or previously executed between the parties, or from entering into agreement with other subdividers for the appointment of costs of water and sewer mains, or other improvements, pursuant to the provisions of the CITY ordinances providing therefore, nor shall anything in this Agreement commit CITY to any such apportionment. 14, SUBDIVIDER'S Obliqation to Warn Public Durinq Construction, Until final acceptance of the Parkland Improvements, SUBDIVIDER shall give good and adequate warning to the public of each and every dangerous condition existent in said improvements, and will take all reasonable actions to protect the public from such dangerous condition, 15, Vestinq of Ownership, Upon acceptance of work on behalf of CITY and recordation of the Notice of Completion, ownership of the improvements constructed pursuant to this Agreement shall vest in CITY, 14 R:\Development Services Forms\Bonds\Parkland Landscape Agreement.doc 16, Final Acceptance of Work. Acceptance of the work on behalf of CITY shall be made by the City Council upon recommendation of the Director of Community Services after final completion and inspection of all Parkland/Landscape Improvements, The Board of Directors shall act upon the Director of Community Services recommendations within thirty (30) days from the date the Director of Community Services certifies that the work has finally completed, as provided in Paragraph 5, Such acceptance shall not constitute a waiver of defects by CITY, 17, Indemnitv/Hold Harmless, CITY or any officer or employee thereof shall not be liable fOr any injury to persons or property occasioned by reason of the acts or omissions of SUBDIVIDER, its agents or employees in the performance of this Agreement. SUBDIVIER further agrees to protect and hold harmless CITY, its officials and employees from any and all claims, demands, causes of action, liability or loss of any sort, because of, or arising out of, acts or omissions or SUBDIVIDER, its agents or employees in the performance of this Agreement, including all claims, demands, causes of action, liability, or loss because of, or arising out of, in whole or in part, the design or construction of the Parkland/Landscape Improvements, This indemnification and Agreement to hold harmless shall extend to injuries to persons and damages or taking of property resulting from the design or construction of the Parkland/Landscape Improvements as provided herein, and in addition, to adjacent property owners as a consequence of the diversion of waters from the design or construction of publiC drainage systems, streets and other public improvements, Acceptance of any of the Parkland/Landscape Improvements shall not constitute any assumption by the CITY of any responsibility for any damage or taking covered by this paragraph, CITY shall not be responsible for the design or construction of the Parkland/Landscape Improvements pursuant to the approved Parkland/Landscape Improvement Plans, regardless of any negligent action or inaction taken by the CITY in approving the plans, unless the 15 R:\Development Serv:ices Forms\Bonds\Parkland Landscape Agreement.doc particular improvement design was specifically required by CITY over written objection by SUBDIVIDER submitted to the Director of Community Services before approval of the particular improvement design, which objection indicated that the particular improvement design was dangerous or defective and suggested an alternative safe and feasible design, After acceptance of the Parkland/Landscape Improvements, the SUBDIVIDER shall remain obligated to eliminate any defect in design or dangerous condition caused by the design or construction defect, however, SUBDIVIDER shall not be responsible for routine maintenance. Provisions of this paragraph for Parkland/Landscape Improvements shall remain in full force and effect for ten years following the acceptance by the CITY, It is the intent of this section that SUBDIVIDER shall be responsible for all liability for design and construction of the Parkland/Landscape Improvements installed or work done pursuant to this Agreement and the CITY shall not be liable for any negligence, nonfeasance, misfeasance or malfeasance in approving, reviewing, checking, or correcting any plans or specifications ,or in approving, reviewing or inspecting any work or construction, The improvement security shall not be required to cover the provision of this paragraph. 18, Sale or Disposition of SUBDIVISION, Sale or other disposition of this property will not relieve SUBDIVIDER from the obligations .set forth herein, If SUBDIVIDER sells the property or any portion of the property within the SUBDIVISION to any other person, the SUBDIVIDER may request a novation of this Agreement and a substitution of security. Upon approval of the novation and substitution of securities, the SUBDIVIDER may request a release or reduction of the securities required by this Agreement Nothing in the novation shall relieve the SUBDIVIDER of the obligations under Paragraph 17 for the work or improvement done by SUBDIVIDER 16 R:\Development Services Forms\Bonds\Parkland Landscape Agreement.doc 19, Time of the Essence, Time is of the essence of this Agreement 20, Time for Completion of Work Extensions. SUBDIVIDER shall complete construction of the improvements required by this Agreement no later than 12/31/06 , In the event good cause exists as determined by the City Engineer, and if otherwise permitted under the tentative map' condition, the time for completion of the improvements hereunder may be extended, The extension shall be made by writing executed by the Director of Community Services, Any such extension may be granted without notice to SUBDIVIDER'S Surety and shall not affect the validity of this Agreement or release the . Surety or Sureties on any security given for this Agreement, The Director of Community Services shall be the sole and final judge as to whether or not good cause has been shown to entitle SUBDIVIDER to an extension, Delay, other than delay in the commencement of work, resulting from an act of CITY, or by an act of God, which SUBDIVIDER could not have reasonably foreseen, or by storm or inclement weather which prevents the conducting of work, or by strikes, boycotts, similar actions by employees or labor organizations, which prevent the conducting or work, and which were not caused by or contributed to by SUBDIVIDER, shall constitute good cause for an extension of time for completion. As a condition of such extension, the Director of Community Services may require SUBDIVIDER to furnish new security guaranteeing performance of this Agreement as extended in an increased amount as necessary to compensate for an increase in construction costs as determined by the Director of Community Services, 21, No Vestina of Riahts, Performance by SUBDIVIDER of this Agreement shall not be construed to vest SUBDIVIDER'S rights with respect to any change in any change in any zoning or building law or ordinance, 17 R:\Development Services Forms\Bonds\Parkland Landscape Agreement.doc 22. Notices. All notices required or provided for under this Agreement shall be in writing and delivered in person or sent by mail, postage prepaid and addressed as provided in this Section, Notice shall be effective on the date it is delivered in person, or, if mailed, on the date of deposit in the United States Mail. Notices shall be addressed as follows unless a written change of address is filed with the City: Notice to CITY: City Clerk City of Temecula 43200 Business Park Drive P,Q, Box 9033 Temecula, CA 92589-9033 Notice to SUBDIVIDER: Name/Address: BRSC, 11C 41623 Margarita Road, Suite 100 Temecula, CA 92591 Contact Name: Mark P. Esoensen Contact Phone No, (951) 491-6300 23, Severability. The provisions of this Agreement are severable, If any portion of this Agreement is held invalid by a court of competent jurisdiction, the remainder of the Agreement shall remain in full force and effect unless amended or modified by the mutual consent of the parties. 24, Captions, The captions of this Agreement are for convenience and reference only and shall not define, explain, modify, limit, exemplify, or aid in the interpretation, construction or meaning of any provisions of this Agreement 25. Litigation or Arbitration. In the event that suit or arbitration is brought tei enforce the terms of this contract, the prevailing party shall be entitled to litigation costs and reasonable attorney's fees. 18 R:\Development SelVices Forms\Bonds\Parkland Landscape Agreement.doc 26, Incorporation of Recitals, The recitals to this agreement are hereby incorporated into the terms of this agreement. 27, Leqal Responsibilities, The Subdivider shall keep itself informed of all local, State and Federal laws and regulations which in any manner affect those employed by it or in any way affect the performance of its obligations pursuant to this Agreement. The Subdivider shall at all times obseNe 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 Subdivider to comply with this section, 28, Entire Aqreement. This Agreement constitutes the entire Agreement of the parties with respect to the subject matter. All modifications, amendments, or waivers of the terms of this Agreement must be in writing and signed by the appropriate representative of the parties, In the case of the CITY, the appropriate party shall be the City Manager. 19 R:\Development Services Forms\Bonds\Parkland Landscape Agreement.doc IN WITNESS WHEREOF, this Agreement is executed by CITY, by and through its Mayor. Name: Mark P. Esbensen Title: President, MPE Development, Inc., Its Manager By: Name: Title: TEMECULA COMMUNITY SERVICES DISTRICT BOARD By: Name: Jeff Comerchero Title: President (Proper Notarization of SUBDIVIDER'S signature ,is required and shall be attached) ATTEST: , By: Susan W. Jones, MMC, City Clerk RECOMMENDED FOR APPROVAL: By: William G, Hughes, Director of Public Works/City Engineer By: Herman D, Parker Director of Community Services APPROVED AS TO FORM: By: Peter Thorson City Attorney R:\DeveJopment Services Forms\Bonds\Parkland Landscape Agreement.doc 20 CALIFORNIA ALL.PURPOSE ACKNOWLEDGMENT . State of California '-f\~~ }ss, County of On 3-V-O,l." Date before me, J '{f)a;,L 'P h,J,.p , 'f(,Ofl1oJ: Th 'fu.-Q,L.. ,: ame and litle of Officer (e.g., uJane Do, olary Public") &~ personally appeared Name(s) of Signer{s) ~ .~ ~ - - ~ H~~ ~~- - J _@ Commission # 1405218 ~. NoIary PublIc - catIIomIai IllvelIIde C tv - i _ _ _ ~~~:..~_~I~~7f D personally known to me ~~d to me on the basis of satisfactory evidence to be the person~whose name~are subscribed to the within instrument and acknowledged to me that ctiek~elll9c;y executed the same in <liisl/herftheir authorized capacity(i~, and that by dilsI'herftlTeir signature(J>(on the instrument the persor}{S), or the entity upon behalf of which the person~ acted, executed the instrument WITNESS my hand and official seal. J~ ,o{,;,~~ OPTIONAL Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. Place Notary Seat Above Description of Attached Doc~e')t A .I I' </l Title or Type of Document: L ~ t?71rJ.Jv:Lt;Lo-f'z'" _./~~~ Document Date: Number of Pages: Signer(s) Other Than Named Above: Capacity(ies) Claimed by Signer(s) Signer's Name: D Individual D Corporate Officer - Title(s): D Partner - D Limited D General D Attorney in Fact D Trustee D Guardian or Conservator' D Other: TOp of thumb here Signer's Name: D Individual D Corporate Officer - Title(s): D Partner - D Limited D General D Attorney in Fact D Trustee D Guardian or Conservator D Other: RIGHT THUMBPRINT OF SIGNER RIGHT THUMBPRINT OF SIGNER Top of thumb here Signer Is Representing: Signer Is Representing: . @2004 National Notary Association. 9350 De Solo Ave., P.O. Box 2402 . Chalsworth, CA 91313-2402 Ilem No. 5907 Reorder: Call Toll-Free 1-800-876-6827 EXHIBIT A (Attach the basis for the estimate of the cost of improvements.) 21 R:\Development Services Forms\Bonds\ParkJand Landscape Agreement.doc PLANTJNG TREES SHRUBS JUTE LAWN SOn, BtfTTERFIELD RANCH - MEDIANS <<~ 7 ! 04-198 lj,dy Q5 -0 0 { . BUDGET ESTIMATE QUAN'ITl'Y UNIT PlUCE o BA. 400.00 o BA. 600.00 32 EA. 225.00 o EA. 75.00 677 EA. 16.00 63 BA. 5.00 o S.P. 0.12 o S.P. 0.10 5664 S.l'. 0.03 o S.P. 0.10 5664 S.P. ' 0.15 5745 L.P. 6.00 o S.P. 0.10 PLANTING SUB-TOTAL BARK CONCRETE STAMPED CO GROUN1JCOVER 4PGM PGM 12 PGM SPRAYHEAD 12RISER RAINBIRD 6 POP-UP 4 POP-UP 2 INCH 1 112 INCH 1 INCH 2 INCH 1-112 INCH 1-114 INCH 1 INCH 3/4 INCH 112 INCH IRRIGATION CONTROL B.P.U PRESS.REG. RoC. V. SENNINGER AMIAD RAlNBIRD API B.VALVE BOWSMITH RAlNBIRD POLYTUBE MlCROTUBE STRM RTR 12" RISER MAIN LATERAL 12 STATION 1 INCH 1 INCH 1 INCH 1-1/2 INCH FRS REG 1 IN DISC FILTER QillCK COUP END PLUSH 2 INCH 1-1/2 INCH EMITTER RAJ:N GUAG SENSE ASSEMBLY 1 EA. 6,000.00 1 EA. 250.00 1 ItA. , 65.00 4 ItA. 35.00 o BA. 75.00 4 EA. 12.00 4 EA. 20.00 6 EA. 30.00 13' EA. 3.50 2 BA. 30.00 3 BA. 25.00 , 774 EA. 0.70 OEA. 42.00 o L.P. 0.80 o L.P. 0.04 o EA. 16.00 o BA. 15.00 o BA. 30.00 o BA. 6,00 o EA. 6.00 o EA. 4.00 o L.1'. 2.25 500 L.P. 1.50 370 L.P. 1,25 o L.P. 1.75 o L.1'. 1.60 o L.P. 1.40 o L.P 1.20 o L.P. 1.05 1165 L.P. 0.90 IRRIGATION SUBTOTAL PLANTINGAMl IRRIGATION TOTAL TOTAL 0.00 0.00 7,200.00 0.00 10,832.00 315.00 0.00 0.00 169.92 0.00 849.60 34,470.00 0.00 53,836.5% 6,000.00 250.00 65.00 140.00 0.00 48.00 80.00 180.00 45.50 60.00 75.00 ' 541.80 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 750.00 462.50 0.00 0.00 0.00 0.00 0.00 1,048.50 9.746.30 63.58%.82 04-198 . COST ESTIMATE MEDIANS lO .d GVALVE { ANCB/MONTH 5,664.00 S.P. 'MAlNTHNANCE/YEAR 5,664.06 S.F. 0.015 I Sl:SL SOOl Ol Je~ B08S-S6l-606:xej 84.96 1,019.52 63.582'82x ] 25. X 7 9 . Lf 7 8 . 5 *,. 8!20/Q8 dnOH9 VH8~VH1V .." o BOND NdC:)731568S PREMIUM: $1,907.00/FOR A TERM OF TWO YE~ " CITY OF TEMECULA PARKLAND/LANDSCAPE FAITHFUL PERFORMANCE BOND WHEREAS, the City of Temecula, State of California, and BRSC. LLC (hereinafter designated as "Principal") have entered into an Agreement whereby Principal agrees to install and complete certain parkland improvements, which said Agreement, dated March 21 20~ and identified as Butterfield Ranch Medians _ CSD05-0077, is hereby referred to and made a part hereof; and WHEREAS, Principal is required under the terms of the Agreement to furnish a bond for the Faithful Performance of the Agreement; NOW, THEREFORE, we the Principal and ~~~Mlt~S c5M~~~ AND as surety, are held and firmly bound unto the City of Temecula, California, in the penal sum of $79,478.50 lawful money of the United States, for the payment of such sum well and truly to be made, we bind ourselves, our heirs, successors, executors and administrators, jointly and severally. The condition of this obligation is such that the obligation shall become null and void if the above-bounded Principal, his or its heirs, executors, administrators, successors, or assigns, shall in all things' stand to, abide by, well and truly keep, and perform the covenants, conditions, and provisions in the Agreement and any alteration thereof made as therein provided, on his or their part, to be kept and performed at the time and in the manner therein specified, and in all respects according to his or their true intent and meaning, and shall indemnify and save harmless the City of T emecula, its officers, agents, and employees, as therein stipulated; othelWise, this obligation shall be and remain in full force and effect. As a part of the obligation secured hereby and in addition to the face amount specified therefore, there shall be included costs and reasonable expenses and fees, including reasonable attorney's fees, incurred by City in successfully enforcing such obligatiorr,alJ-toile-taxe-d CIS Gu:;tS<lnl!incttKfea In anYJuagmem renaered. R:\Development Services Forms\Bonds\parkIand landscape faithful performance. doc 03/21/2006 " o o The surety hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of the Agreement or to the work to be performed there under or the specifications accompanying the same shall in anyway affect its 9bligations on this bond, and it does hereby waive notice of any such change, extension of time, alteration or addition to the terms of the Agreement or the work or to the specifications. IN WITNESS WHEREOF, this instrument has been duly executed by the Principal and Surety above named, on MARCH 29. , 2006 (Seal) (Seal) SURETY By: ::I~S0Q~ JANET . SHAW (Name) Mark P. Esbensen (Name) ATTORNEY IN FACT (Title) President, MPE Development, Inc., Its Manager (Title) By: (Name) (Title) A~ TO FORM: ~ Peter Thorson, City Attorney R:\Development Services Forms\Bonds\parkland landscape faithful performance.doc 03/21i2006 o o STATE OF CALIFORNIA ] COUNTY OF LOS ANGELES MAR 2 9 2006 On , before me, DEBRA K. BELL, NOTARY PUBLIC (here insert name andtille of the officer), personaiiyappeared JANET L SHAW ATTORNEY IN FACT ' , personaiiyknown to me~~~) to be theperson(s) whose name(s) islare subscribed to the within instrument and acknowledged to me that he/shelthey executed the same in hislherltheir authorized capacity(ies), and that by hislherltheir signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal, Signatur~6-lL-.. ~ (SEAL) DEBRA K. BELL COmmiSSion # 1430084 ~ Notary Public - California U LOS ANGELES County.. MyComm ExpIf1lSJUl 30,2007 This areaJor Official Notarial Seal OPTIONAL Though the data below is not required by law, It may prDve valuable to persons relying on the document and could prevent fraudulent reattachment of this form. CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT o INDIVIDUAL o CORPORATE OFFICER TITLE OF TYPE OF DOCUMENT TITlE{B) o PARTNER(S) o LIMITED o GENERAL ~ ATTORNEY-IN-FACT o TRUSTEE(S) o GUARDIAN/CONSERVATOR o OTHER: NUMBER OF PAGES DATE OF DOCUMENT SIGNER IS REPRESENTING: NAME OF PEASON(S) OR ENTITY(IES) SIGNER(S) OTHER THAN NAMED ABOVE ID,.1232 (REV. 12/05) ALL-PURPOSE ACKNOWLEDGEMENT o o CALIFORNIA ALL.PURPOSE ACKNOWLEDGMENT -.-.-.- = -"~~~.- ~ = _:~._ ~ _._._A_*_A~*_*_ ~~=A~ _A_*_ _~ State of California personally appeared yY)~ }ss. BeVeJ'.2,L'( S~H Name and TrUe of Officer (e.g., ~Jane Do otary Public") P. f?3>Ben~/) Name(s) of Signer(s) County of AI\J~SIDe. On ;3 ,31 .oeo before me, Date 1.-- - - ~=~-F ~ ..~ Notary Pubic - Call1amia i j Rlve_County- _ _ _ ~~:..ExpqsJanI4.20091 ------ ~rSOnally known to me o proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by hislher/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. Place Notary Seal Above OPTIONAL Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. Description of Attached Document Title or Type of Document: Document Date: Number of Pages: Signer(s) Other Than Named Above: Capacity(ies) Claimed by Signer(s) Signer's Name: o Individual o Corporate Officer - Title(s): o Partner - 0 Limited 0 General o Attorney in Fact o Trustee o Guardian or Conservator o Other: Top of thumb here Signer's Name: o Individual o Corporate Officer - Title(s): o Partner - 0 Limited 0 Generai o Attorney in Fact o Trustee o Guardian or Conservator o Other: RIGHT THUMBPRINT OF SIGNER RIGHT THUMBPRINT OF SIGNER Top of thumb here Signer Is Representing: Signer Is Representing: ~-~ ~ -~~ """-;~-~ @2004NationaINotaryAssociation.9350DeSoloAve., P.O. Box 2402. Chatsworth, CA 91313.2402 lIem No. 5907 Reorder: Call Toll-Free 1-800-876-6827 . ' o BOND~.: 731568S PREM1cA INCLUDED IN PERFORMANCE CITY OF TEMECULA PARKLAND/LANDSCAPE WARRANTY BOND WHEREAS, the City of T emecula, State of California (hereinafter designated as .City"), and BRSC. LLC (hereinafter designated as .Principal") have entered into an Agreement whereby Principal agrees to install and complete certain designated Parkland Improvements, which said Agreement, dated March 21 20 06 , and identified as Butterfield Ranch Medians - CSD05-0077, is hereby referred to and made a part hereof; and WHEREAS, Principal is required to warranty the work done under the terms of the Agreement for a period of one (1) year following acceptance thereof by City against any defective work or labor done or defective materials furnished, in the amount of ten percent (10%) of the estimated cost of the improvements; DEVELOPERS SURETY AND INDEMNITY NOW, THEREFORE, we the Principal and COMPANY as surety, are held and firmly bound unto the City of Temecula, California, in the penal sum of $7,947.85, lawful money of the United States, for the payment of such sum well and truly to be made, we'bind ourselves, our heirs"successors, executors and administrators, jointly and severally. Th~ condition of this obligation is such that the obligation shall become null and void if the above-bounded Principal, his or its heirs, executors, administrators, successors, or assigns shall in all things stand to, abide by, well and truly keep, and perform the covenants, conditions, and provisions in the Agreement and any alteration thereof made as therein provided, on his or their part, to R:\KITCHEL, Janel\8ondsIOS-0077\parkland landscape Warranty Bond 1,doc Page 1 ot3 . ' o o be kept and performed at the time and in the manner therein specified, and in all 'respects according to his or their true intent and meaning, and shall indemnify and save harmless the City of Temecula, its officers, agents, and employees, as therein stipulated; otherwise, this obligation shall be and remain in full force and effect. As a part of the obligation secured hereby and in addition,to the face amount specified therefore, there shall be included costs and reasonable expenses and fees, including reasonable attorney's fees, incurred by City in successfully enforcing such obligation, all to be taxed as costs and included in any judgment rendered. the surety hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of the Agreement or to the work to be performed hereunder or the specifications accompanying the same shall in anyway affect its obligations on this bond, and it does hereby waive notice of any such change, extension , of time, alteration or addition to the terms of the Agreement or to the work or to the specifications. R:\KITCHEL, JanetlBondsI05-0077\parkland landscape Warranty Bond l,doo Page 2 of3 o o IN WITNESS WHEREOF, this instrument has been duly executed by the Principal and Surety above named, on MARCH 29. ,20~. (Seal) (Seal) By: PRINCIPAL'BR(:J,O BY:~ !../" "7 ( SHAW (Name) Mark P. Esbensen (Name) ATTORNEY IN FACT, , (Title) President, MPE Development, Inc., Its Manager (Title) By: (Name) (Title) APPROVED AS TO FORM: ~ Peter Thorson, City Attomey R:\KITCHEl, Janel\Bonds\OS-0077\parkland landscape Warranty Bond l.doc Page 3 of3 o o CALIFORNIA ALL.PURPOSE ACKNOWLEDGMENT - -:~-- = -~ = ,..,. = - "'" = -"-.--->- ~ State of California County of R\V~lne }ss. On "3.3 \-O{P Date before me, Name and Title of Officer (e.g., "Jane 00 , olary Publi personally appeared Name(s) of Signer(s) ~ - - - - - 8MRlY~Oi - - ~ @ Commission # 1544468 i -,,; Nofary PublIc . CallIomIa f ~' RIveJSfde Counly f ~ _ _ ~~:..~_~1~2~ ~erSOnallY known to me D proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. Place Notary Seal Above / OPTIONAL Though the information below is not required by Ja\1f,. it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. Description of Attached Document Title or Type of Document: Document Date: Number of Pages: Signer(s) Other Than Named Above: Capacity(ies) Claimed by Signer(s) Signer's Name: D Individual D Corporate Officer - Title(s): D Partner - D Limited D General D Attorney in Fact D Trustee D Guardian or Conservator D Other: Top of thumb here Signer's Name: D Individual D Corporate Officer - TItle(s): D Partner - D limited D General D Attorney in Fact D Trustee D Guardian or Conservator D Other: RIGHT THUMBPRINT OF SIGNER RIGHT THUMBPRINT OF SIGNER Top of thumb here Signer Is Representing: Signer Is Representing: -~-.~~- ~.,.... _.-?~._y-y-y~~.-;~ @2oo4 National Notary Association. 9350 De Solo Ave., P.O. Box 2402 . Chatsworth, CA 91313-2402 Item No. 5907 Reorder: Call Toll-Free 1.800.876-6827 .. '. e e STATE OF CALlFORNI.A ] COUNTY OF LOS ANGELES o)lAR 2 9 2006 , before me, DEBRA K BEll, NOTARY PUBLIC (here insert name and title of the officer), personally appeared JANET l, SHAW ATTORNEY IN FACT , personally known 10 me~~~~~) to be the person(s) whosename(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in hisfher/their authorized capacity(ies), and that by hisfher/their signature(s) on the instrument the person(s), or the entity upon behaif of which the person(s) acted, executed the instrument. WITNESS my hand and official seai. SignaturfJ.-JJnc...L "- CisLQO (SEAL) DEBRA K. BELL ,.. commission # 143008.4 :J/ Notary Public - CaliforOla CiIl LOS ANGELES county - lilt comm ~JUl 30, 200 This area for OJJicial Notarial Seal OPTIONAL Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form, CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT o INDIVIDUAL o CORPORATE OFFICER TITLE OF TYPE OF DOCUMENT - TlTLE(S) o PARTNER(S) o LIMITED , 0 GENERAL [{j ATTORNEY.IN-FACT o TRUSTEE(S) o GUARDIAN/CONSERVATOR o OTHER: NUMBER OF PAGES DATE OF DOCUMENT SIGNER IS REPRESENTING: NAME OF PERSON(S} OR ENTITY(IES) SIGNER(S) OTHER THAN NAMED ABOVE 10-1232 (REV. 12/05) ALL-PURPOSE ACKNOWLEDGEMENT . e o POWER OF ATTORNEY FOR DEVELOPERS SURETY AND INDEMNITY COMPANY INDEMNITY COMPANY OF CALIFORNIA PO BOX I972S,IRVINE, CA92623 (949) 263-3300 KNOW ALL MEN BY THESE PRESENTS, that except as expressly limited, DEVELOPERS SURETY AND INDEMNITY COMPANY and INDEMNITY COMPANY OF CALIFORNIA, do each, hereby make, constitute and appoint: ***Cassie J. Berrisford, Cindy L. Ridley, Janet L. Shaw, Cheryl Caiger, Debra Bell, jointly or severally*** as their true and lawful Attomey(s)-in-Fact, to make, execute, deliver and acknowledge. for and on behalf of said cOIporations, as sureties, bonds, undertakings and contracts of suretyship giving and granting WIta said Attomey(s)~in-Fact full power and authority to do and to perform every act necessary. requisite or proper to be done in connection therewith as each of said corporations could do, but reserving to each of said corporations full power of substitution and revocation, and all of the acts of said Attomey(s)-in-Fact. pursuant to these presents, are hereby ratified and confirmed. This Power of Attorney is granted and is signed by facsimile under and by authority of the following resolutions adopted by the respective Board of Directors of DEVELOPERS SURETY AND INDEMNITY COMPANY and INDEMNITY COMPANY OF CALIFORNIA, effective as nfNovernber I, 2000: RESOLVED, that the Chainnan of the Board, the President and any Vice President of the corporation be, and that each of them hereby is, authorized to execute Powers of Attorney, qualifying the attomey(s) named in the Powers of Attorney to execute, on behalf of the corporations. bonds, undertakings and contracts of suretyship; and that the Secretary or any Assistant Secretary of the corporations be, and each of them hereby is, authorized to attest the execution of any such Power of Attorney; RESOLVED, FURTHER, that the signatures of such officers may be affixed to any such Power of Attorney or to any certificate relating thereto by facsimile, and any such Power of Attorney or certificate bearing such facsimile signatures shall be valid and binding upon the corporation when so affixed and in the future with respect to any bond. undertaking or contract of suretyship to which it is attached. IN WITNESS WHEREOF, DEVELOPERS SURETY AND INDEMNITY COMPANY and INDEMNITY COMPANY OF CALIFORNIA have severally caused these presents to be signed by their respective Executive Vice President and attested by their respective Secretary this I st day of December, 2005. By: G~~) David H. Rhodes, Executive Vice-President By: Walter A. Crowell, Secretary ~~ )"UIIIII.". )............'..{ AND ;"'",,, ",~^-t,.1. ........... il'.o"",'" ~....:fi:" .......0 '" v~.... "ii't",O~c /tj:...+... . 'C; '...."".. If:t OCT. ~;~i i~i 10 ins ~O,\ 1936 .i~j .~, "S" \~,)>,....,1Ow~ ......~ l ~""() ............. 't-"f.,,~" ~"'" * ............ ''''.'.''1111111 STATE OF CALIFORNIA ] COUNTY OF ORANGE On December I, 2005 before me, Gina L. Gamer, (here insert name and title of the officer), personally appeared David H. Rhodes and Walter A. Crowell, personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whosename(s) is/are subscribed to tbe within instrnment and acknowledged to me that helshe/they executed the same in hislher/their authorized capacity(ies), and that by hislher/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted. executed the instrument Signature 67nd c;( ~ (SEAL) f' . . .. ~I~~~.~~~~E~' J ifJ COMM,#1569561 ~ , NOTARY PUBUC CAUFORNlA " ORANGE COUNTY " ~ = comm.e=,.. ~ 13.d . . .. ..... ..., - .... .~ WIlNESS my hand and official seal. CERTIFICATE The undersigned, as Assistant Secretary, ofDEVELOPERS SURETY AND INDEMNITY COMPANY and INDEMNITY COMPANY OF CALIFORNIA, does hereby certify that the foregoing Power of Attorney remains in fun force and has not been revoked, and furthermore, that the provisions of the resolutions of the respective Boards of Directors of said corporations set forth in the Power of Attorney, are in force as of the date of this Certificate. This Certificate is executed in the City of1rvioe. California. the _ day of MAR 2 9 2006 By Albert Hillebrand, Assistant Secretary ~I-~ ID-1380 (Rev, 12105) '". '. o BO~.: 731568S PREMIUM INCLUDED IN PERFORMANCE ,. CITY OF TEMECULA PARKLAND/LANDSCAPE,LABOR AND MATERIALS BOND WHEREAS, the City of Temecula, State of California, and BRSC, LLC (hereinafter designated as "Principal") have entered into an Agreement whereby Principal agrees to install and complete certain Parkland Improvements, which said Agreement, dated March 21 , 20 06 , and identified as Butterfield Ranch Medians - CSD05-0077, is hereby referred to and made a part hereof; and WHEREAS, under the term of said Agreement, Principal is required before entering upon the performance of the work, to file a good and sufficient payment bond with the'City of Temecula, to secure the claims to which reference is made in Title 15 (commencing with Section 3082) of Part 4 of Division 3 oflhe Civil Code of the State of California; and DEVELOPERS SURETY AND'INDEMNITY NOW, THEREFORE, we the principal and COMPANY as Surety, are held and firmly bound unto the City of Temecula, California, and all contractors, subcontractors, laborers, material men, other persons employed in the performance of the aforesaid Agreement and referred to in Title 15 of the Civil Code, in the penal sum of $39,739.25 lawful money of the United States, for materials furnished, or labor thereon of any kind, or for amounts due under the Unemployment Insurance Act with respect to such work or labor, that Surety will pay the same in an amount not e>>I:ceemng the-ameunt setferth R:\KJTCHEL, JanetlBondsI05-0077\parkland landscapa labor and materials bond,doc Page 1013 o o As a part of the obligation secured hereby and in addition to the face amount specified therefore, there shall be included costs and reasonable expenses and fees, including reasonable attorney's fees, incurred by City in successfully enforcing such obligation, all to be taxed as costs and included in any judgment rendered. It is hereby expressly stipulated and agreed that this bond shall insure to the benefit of any and all persons, companies and corporations entitled to file claims under Title 15 (commencing with Section 3082) of Part 4 of Division 3 of the Civil Code, so as to give a right of action to them or their assigns in any suit brought upon this bond. If the condition of this bond is fully performed, then this obligation shall become null and void; otherwise, it shall be and remain in full force and effect. The surety hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of the Agreement ,or to the work to be performed there under or the specifications accompanying the same shall in anyway affect its obligations on this bond, and it does hereby waive notice of any such changes, extelnsiQn of time, alteration or addition to the terms of the Agreement or to the work or to the specifications. R:IKITCHEL, JanetIBondsI05-00771parkland landscape labor and materials bond.doe Page 2 013 e o IN WITNESS WHEREOF, this instrument has been duly executed by the Principal and Surety above named, on MARCH 29. , 20 06 (Seal) (Seal) S RETY AND ANY PRINCIPAL Bm By: '---tVJ / 7 f (Name) ATTORNEY IN FACT (Title) 'President, MPE Development, Inc., Its Manager (TItle) By: (Name) (Title) APPROVED AS TO FORM: ~ Peter Thorson, City Attorney , R:\KITCHEl, Janet\Bonds\OS-0077\parkland landscape labor and materials bond.doc Page 3 013 o o CALIFORNIA ALL.PURPOSE ACKNOWLEDGMENT """"" ~ ~_._~_._ _,_._._.~.~.~._ ._A_A_A___A___A___ =-- State of California } ss. County of ~ \ Vf'.A:,> 10-t'. On 3,3 \ -(:;(p before me, Date personally appeared iY\~ J- - - -~=~~-~ :$ ~ Notary PublIc . CafIfomIa ~ 2~ R_Caunly - ~ _ _ _ ~~:.~_~1-:2~t ~erSOnallY known to me o proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. Place Notary Seal Above Though the information below is not required by law. it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. Description of Attached Document Title or Type of Document: Document Date: Number of Pages: Signer(s) Other Than Named Above: Capacity{ies) Claimed by Signer{s) Signer's Name: D Individual D Corporate Officer - Title(s): D Partner - D Limited 0 General D Attorney in Fact D Trustee D Guardian or Conservator D Other: Top of thumb here Signer's Name: o Individual o Corporate OIIicer - Title(s): o Partner - 0 Limited D General o Attorney in Fact o Trustee o Guardian or Conservator o Other: RIGHT THUMBPRINT OF SIGNER RIGHT THUMBPRINT OF SIGNER Top of thumb here Signer Is Representing: Signer Is Representing: ~.,..,.~"""~~-;~ @2004 National Notary Association. 9350 De Soto Ave., P.O. Box 2402 . Chatsworth, CA 91313.2402 Item No. 5907 Reorder: Call Toll-Free 1-800-876-6827 . , o o STATE OF CALIFORNIA ] COUNTY OF LOS ANGELES MAR 2 9 2006 On , before me, DEBRA K. BELL, NOTARY PUBLIC (here insert name and title of the officer), personally appeared JANET L SHAW ATTORNEY IN FACT , personally known to me l6fJ!>~~~) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he!sheJthey executed the same in his/herltheir authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal, DEBRA K. BELL CommIssIon # 143008 !:V Notary Public. Californi (lit LOS ANGELES County.. My Comm ~JUL 30, 200 Signature~CLLz.. ~ (SEAL) This areaJor OJJicial Notarial Seal OPTIONAL Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form, CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT D INDIVIDUAL D CORPORATE OFFICER TITLE OF TYPE OF DOCUMENT TITlE(S) D PARTNER(S) D LIMITED D GENERAL I!"i ATTORNEY-IN-FACT D TRUSTEE(S) D GUARDIAN/CONSERVATOR D OTHER: NUMBER OF PAGES DATE OF DOCUMENT SIGNER IS REPRESENTING: NAME OF PEAsaNtS) OR ENTITY(IES) SIGNER(S) OTHER THAN NAMED ABOVE 10-1232 (REV. 12/05) ALL-PURPOSE ACKNOWLEDGEMENT ITEM NO. 33 Approvals City Attorney Director of Finance City Manager ~~ /JiZ !fr- TEMECULA COMMUNITY SERVICES DISTRICT AGENDA REPORT TO: General Manager/Board of Directors FROM: Herman D, Parker, Director of Community Services DATE: November 14, 2006 SUBJECT: Acceptance of Landscape Bonds and Agreement for the Wolf Creek Linear Park South (Phase II) PREPARED BY: Barbara Smith, Senior Management Analyst RECOMMENDATION: That the Board of Directors accepts the surety bonds and agreement from Wolf Creek Development, LLC to improve the Linear Park South along Wolf Creek Drive (South), BACKGROUND: The Wolf Creek Development is a large specific plan located in the southwestern portion of the City, Pursuant to the conditions of approval for this development, Wolf Creek Development, LLC is proposing to improve the Linear Park South adjacent to Wolf Creek Drive (South), Landscape plans forthe Linear Park have been reviewed and approved byTemecula Community Services District (TCSD), The acceptance of the bonds and agreement ensure that the landscaping will be installed to TCSD's standard and inspection processes, Once the landscaping is installed and the TCSD has approved the completion of the landscape improvements staff will recommend the appropriate release or reduction of the submitted bonds, TCSD will take over the maintenance responsibilities of the proposed Linear Park South improvements at acceptance of the park improvements, The following is information regarding the bonds provided by Fidelity and Deposit Company of Maryland: 1, Faithful Performance Bond No, 08832549 for $937,452,00 2, Labor and Materials Bond No, 08832549 for $468,726,00 3, Warranty Bond No, 08832549 A for $93,745,00 FISCAL IMPACT: borne by the developer. None, The cost of construction for the Linear Park South and will be ATTACHMENTS: Vicinity Map Project Map Agreement/Bonds t\ \ ",' "'WI-~iliiqpi~"~ -...--... . ...........JllfJIIIllldllll.1flU. 'I.J:lIIII>>IUI_~ MAJDjpeJlDeq...._.........~ -""-...-..-.. ftwIllllUO.....UllRI!IUDMJlUItII(J ....- ~~IIIJOJ~_"__ ClUIII4anIp'DlllllJ.P1tO..... .&p\oQ.......P ,..~.:=.~~~...": ;r.~-_Il-""=- ~1IJAm-..,..t;qIflll&ltM\cIII.lItNi IH~ 0ll0l: ' OOOl o 0001 ", UO""A.I8S&N1lIlu8Ip9cl91 ' r (f) ,.<no 9UJII8Ill9O, ^ " I s.<I!AIIl6IH / V ,pua691 ,d "! " .J .~"'. ". ,. , " "0,.. "'" OU!SBO pUB tJose~ B6UBI.I09d, -,' >':>I::'f'~ .. ,.-\ .- \ :~'.' \. dVW A.LINI3IA 1(0101.13 JIO 1\\ ,- ....... -...... . ~ c:~ 0:- <!;j: Wo 39 - !\JIll -----=------=- -- - --- t![j;j--~-:- ::--, II ' j::-- t:~- ' ~~ I "- I '!: K-~~ Jfh~ ~, ,.", :t -- ~ciJ!~Jl ' t---',t~~-- ii"'Jlr~~'r- ~ ::4 U ~~ po = r--, cL ' u. ':--. . \ "...... 'F~ k _ ,- -=<I, ~ I-- I , " / .,.l.- I\-J L l- 'K ' Xl: If--\,\k. ~~i~~!~. '- +lJji~ 1 ~Lff~'.ll -<- T 9f'- -r 1/1"'-- ~ ~~'~--r!, L2 rm~ltID~l : W- ~.,: .~' I' '=11= r Tf'A~t' ,', 1\ : i ffJ/f:1'(J~7fdr.'J- J I l' 'iT I : r_;JI'~ {J If H I -rm qE:J --- -- -: I {l9ft'I'--l---.~iV' ~ I t;tL ,;;:., tI+~, =r, ",g;" I , , ~ _ "-1 ff ,~" :~ ~I TITI ' --__ I I:::II I 1- b 'I f I -- ~ -- ~I \ _ _ _ ""Tif . '.' , ~__~_ "",' _.1 ,II i _..- - . - ---lr' _d~ ", ~jk5jiijii"JWAi\a:'iI.~{;"~(i,~~~' ..". : : ." ~;"...,.,,~,;> ~ ~~ =-," lit 1 -- - -" \ \--\J)i~-~I \l=: io- '=1 : ~1=rl "'---! - =r tI I ff8:::::: ~I-- c. : II-rVLp:L p:OJ , : \, :---\= 'I t::1- ' , p:~ ' , +rrill ! __ TITIIJl1ffi ' , , , f ill ,,;; II -( " Tr -:: '1-- TJ= -\11 ~ I {i/\ ,~ City Of Temecula Community Services Department 43200 Business Park Drive. Mailing Address: P,O, Box 9033. Temeeula, CA 92589-9033 (951) 694-6480 . Fax (951) 694-6488 . www,eitvoftemeoula,ora Name of Subdivider: tvoL-F C/Lt.E!- Dt:vfU-.Of>1'11 ~T LL C AddressofSubdivider(street): c::L::iS E. t(lV\~ .;$krE-€___:t ;5udt:05O Address of Subdivider (city, state, zip): Cor lSV\C. C A q J-~ 7 q Contact:cl~\ ~\,.~ (D Ect Vy,~ E( Phone Number: (QQ).J7J-Y$[i) f-~~ Fax Number: (Cf;;f)J7.J- ?~(() Name of Subdivision: TR30264 Wolf Creek Linear Park - Phase 2 - CSD05-0039 $937,452,00 7ft 1"'Z--<:>07 Name of Surety: t=' l ck I \ Address of Surety (street): Address of Surety (city, state, zip): [ C>.vLd> $uL-tL Faithful Performance Bond Labor and Materials Bond Bond for Warranty n 3:J-.5 q o rg 3;25 4q 0"['{;3 J~ q -- It 468,726,00 93,745,00 1 R:IKITCHEL, JanetlBondsl05-0039lParkland Landscape Agreementdoc This Agreement is made and entered into by and between the City of Temecula, California, a Municipal Corporation of the State of California, hereinafter referred to as CITY, and the SUBDIVIDER. RECITALS A SUBDIVIDER has presented to CITY for approval and recordation, a final subdivision map of a proposed subdivision pursuant to provisions of the Subdivision Map Act of the State of California and the CITY ordinances and regulations relating to the filing, approval and recordation of subdivision maps. The Subdivision Map Act and the CITY ordinances and regulations relating to the filing, approval and recordation of subdivision maps are collectively referred to in this Agreernent as the "Subdivision Laws," B, A tentative map of the SUBDIVISION has been approved, subject to the Subdivision Laws and to the requirements and conditions contained in the Resolution of Approval. The Resolution of Approval is on file in the Office of the City Clerk and is incorporated into this Agreement by reference, C, SUBDIVIDER is required, ' as a condition of the approval of the tentative map that the Parkland Improvement plans must be completed, in compliance with City standards, by the Completion Date, The Subdivision Laws establish as a condition precedent to the approval of a final map, that the SUBDIVIDER has entered into a secured Agreement with the CITY to complete the Parkland/Landscape Improvement Plans within the Completion Date. D, In consideration of approval of a final map for the SUBDIVISION by the City Council, SUBDIVIDER desires to enter into this Agreement, whereby promises to install and complete, at SUBDIVIDER'S own expense, all the Parkland/Landscape Improvement work required by City in connection with proposed subdivision, Subdivider has secured this agreement by 2 R:IKITCHEL, JanetlBondsl05-0039\Parkland Landscape Agreement.doc Parkland/Landscaping Improvement Security required by the Subdivision Laws and approved by the City Attorney, The term "Parkland" includes landscape areas intended to be maintained by the Temecula Community Services District E. Complete Parkland/Landscape Improvement Plans for the construction, installation and completion of the Parkland Improvements have been prepared by SUBDIVIDER and approved by the Director of Community Services, The Parkland Improvement Plans numbered as referenced previously in this Agreement are on file in the Office of the Director of Community Services and are incorporated into this Agreement by this reference, All references in this Agreement to the Parkland Improvement Plans shall include reference to any specifications for the Improvements as approved by the Director of Community Services. F, An estimate of the cost for construction of the Parkland Improvements according to the Improvement Plans has been made and approved by the Director of Community Services, The estimated amount is stated on Page 1 of this Agreement The basis for the estimate is attached as Exhibit "A" to this Agreement G, The CITY has adopted standards for the construction and installation of Parkland/Landscape Improvements within the CITY, The Parkland/Landscape Improvement Plans have been prepared in conformance with the CITY standards, (in effect on the date of approval of the Resolution of Approval), H. SUBDIVIDER recognizes that by approval of the final map for SUBDIVISION, CITY has conferred substantial rights upon SUBDIVIDER, including the right to sell, lease, or finance lots within the SUBDIVISION, and has taken the final act necessary to subdivide the property within the SUBDIVISION, 3 RIKITCHEL, JanetlBondsl05-0039lParkland Landscape Agreementdoc As a result, CITY will be damaged to the extent of the cost of installation of the Parkland/Landscape Improvements by SUBDIVIDER'S failure to perform its obligation under this Agreement, including, but not limited to, SUBDIVIDER'S obligation to complete construction of Parkland/Landscape Improvements by the Completion Date, CITY shall be entitled to all remedies available to it pursuant to this Agreement and the Subdivision Laws in the event of a default by SUBDIVIDER It is specifically recognized that the determination of whether a reversion to acreage or rescission of the SUBDIVISION constitutes an adequate remedy for default by the SUBDIVIDER shall be within the sole discretion of CITY NOT, THEREFORE, in consideration of the approval and recordation by the City Council of the final map of the SUBDIVISION, SUBDIVIDER and CITY agree as follows: 1, SUBDIVIDER'S Obliqations to Construct Parkland/Landscapinq Improvements, SUBDIVIDER Shall: a, Comply with all the requirements of the Resolution of Approval, and any amendments thereto, and with the provisions of the Subdivision Laws, b, Pursuant to the requirements of Labor Code Section 1720, SUBDIVIDER shall pay prevailing wages for all work performed for the construction, alteration, demolition, installation, or repair for the Parkland/Landscape Improvement Work required by this Agreement. In accordance with the provisions of Section 1773 of the Labor Code of the State of California, the City Council has obtained the general prevailing rate of per diem wages and the general rate for holiday and overtime work in this locality for each craft, classification, or type of workman needed to execute this Contractor from the Director of the Department of Industrial Relations, These rates are on file 4 R:IKITCHEL, JanetlBondsl05-0039\Parkland Landscape Agreementdoc with the City Clerk. Copies may be obtained at cost at the City Clerk's office of the City of Temecula, Subdivider shall post a copy of such wage rates at the job site and shall pay the adopted prevailing wage rates as a minimum, Subdivider shall comply with the provisions of Sections 1773,8, 1775, 1776, 1777,5, 1777,6, and 1813 of the Labor Code and other applicable laws and regulations with respect to the payment of prevailing wages, Pursuant to the provisions of 1775 of the Labor Code, Subdivider shall forfeit to the City, as a penalty, the sum of $25,00 for each calendar day, or portion thereof, for each laborer, worker, or mechanic employed, paid less, than the stipulated prevailing rates for any work done under this Agreement, by it or by any subcontractor under it, in violation of the provisions of the Agreement or in violation of any applicable laws or regulations pertaining to the payment of prevailing wages, c. Complete by the time established in Section 20 of this Agreement and at SUBDIVIDER'S own expense, all the Parkland/Landscape Improvement work required on the Tentative Map and Resolution of Approval in conformance with the Parkland Improvement Plans and the CITY standards: d. Furnish the necessary materials for completion of the Parkland Improvements in conformity with the Parkland Improvement Plans and CITY standards, e, Except for easements or other interested in real property to be dedicated to the Homeowners Association of the SUBDIVISION, acquire and dedicate, or pay the cost of acquisition by CITY, of all rights-of-way, easements and other interests in real property for construction or installation of the Parkland/Landscape Improvements, free and clear of all liens and encumbrances for the SUBDIVIDER'S obligations with regard to acquisition by CITY of off-site 5 R:\KITCHi;;L, JanetlBondsl05-0039lParkland Landscape A9reementdoc rights-of-way, easements and other interests in real property shall be subject to a separate Agreement between SUBDIVIDER and CITY, 2, , Acquisition and Dedication of Easements or Riqhts-of-Way, If any of the Parkland/Landscape Improvements and land development work contemplated by this Agreement are to be constructed or installed on land not owned by SUBDIVIDER, no construction or installation shall be commenced before: a, The offer of dedication to CITY or appropriate rights-of-way, easements or other interest in real property, and app'ropriate authorization from the property owner to allow construction or installation of the Improvements or work, or b. ' The dedication to, and acceptance by, the CITY of appropriate rights-of-way, easements or other interests in real property, and approved by the Department of Public Works, as determined by the Director of Community Services, c. The issuance by a court of competent jurisdiction pursuant to the State Eminent Domain Law of an order of possession, SUBDIVIDER shall comply in all respects with order of possession, Nothing in this Section 2 shall be construed as authorizing or granting an extension of time to SUBDIVIDER 3, Security, SUBDIVIDER shall at all times guarantee SUBDIVIDER'S performance of this Agreement by furnishing to CITY, and maintaining, good and sufficient security as required by the Subdivision Laws on forms approved by CITY for the purposes and in the amounts as follows: a, to assure faithful performance of this Agreement in regard to said improvements in and amount of 100% of the estimated cost of the Parkland/Landscape Improvements; and 6 R:IKITCHEL, JanetIBondsI05-0039\Parkland Landscape Agreementdoc b. to secure payment to any contractor, subcontractor, persons renting equipment, or furnishing labor materials for Parkland/Landscape Improvements required to be constructed or installed pursuant to this Agreement in the additional amount of 50% of the estimated cost of the Improvements; and c. to guarantee or warranty the work done pursuant to this Agreement for a period of one year following acceptance thereof by CITY against any defective work or labor done or defective materials furnished in the additional amount of 10% of the estimated cost of the Parkland Improvements, The securities required by this Agreement shall be kept on file with the City Clerk. The terms of the security documents referenced on Page 1 of this Agreement are incorporated into this Agreement by this Reference, If any security is replaced by another approved security, the replacement shall be filed with the City Clerk and, upon filing, shall be deemed to have been made a part of and incorporated into this Agreement. Upon filing of a replacement security with the City Clerk, the former security may be released, 4, Alterations to Parkland Improvement Plans, a, Any changes, alterations or additions to the Parkland/Landscape Improvement Plans and specifications or to the improvements, not exceeding 10% of the original estimated cost if the improvement, which are mutually agreed upon by the CITY and SUBDIVIDER, shall not relieve the improvement security given for faithful performance of this Agreement. In the event such changes, alterations, or additions exceed 10% of the original estimated cost of the improvement, SUBDIVIDER shall provide improvement security for faithful performance as required by Paragraph 3 of this Agreement for 100% of the total estimated cost of the improvement as changed, 7 R:IKITCHEL, JanetIBondsl05-0039lParkland Landscape Agreamentdoc altered, or amended, minus any completed partial releases allowed by Paragraph 6 of this Agreement b, The SUBDIVIDER shall construct the Parkland Improvements in accordance with the CITY Standards in effect at the time of adoption of the Resolution of Approval. CITY reserves the right to modify the standards applicable to the SUBDIVISION and this Agreement, when necessary to protect the public health, safety or welfare or comply with applicable State or federal law or CITY zoning ordinances, If SUBDIVIDER requests and is granted an extension of time for completion of the improvements, CITY may apply the standards in effect at the time of the extension, 5. Inspection and Maintenance Period, a, SUBDIVIDER shall obtain City inspection of the Parkland/Landscape Improvements in accordance with the City standards in effect at the time of adoption of the Resolution of Approval. SUBDIVIDER shall at all times maintain proper facilities and safe access for inspection of the Parkland Improvements by CITY inspectors and to the shops wherein any work is in preparation, Upon completion of the work the SUBDIVIDER may request a final inspection by the Director of Community Services, or the Director of Community Service's authorized representative, City Council authorizes the Director of Community Services or the Director of Community Services authorized representative to accept the landscaped medians, perimeter slopes, and parks into the Community Services Maintenance System which is funded by the Parks and Lighting Special Tax, b, SUBDIVIDER shall continue to maintain the Parkland/Landscape Improvements for ninety (90) days after they have been certified completed, No improvements shall be finally accepted unless the maintenance period has 8 R:\KITCHEL, JaneIIBonds\05-003S\Parkland Landscape Asreement.doc expired, and all aspects of the work have been inspected and determined to have been completed in accordance with the Parkland/Landscape Improvement Plans and CITY standards. SUBDIVIDER shall bear all costs of inspection and certification. 6. Release of Securities. Subject to approval by Community Services, the securities required by this Agreement shall be released as follows: a. Security given for faithful performance of any act, obligation, work or Agreement shall be released upon the expiration of the maintenance period and the final completion and acceptance of the act or work, subject to the provisions of subsection (b) hereof. b. The Director of Community Services may release a portion of the security given for faithful performance of improvement work as the Parkland Improvement progresses upon application therefore by the SUBDIVIDER; provided, however, that no such release shall be for an amount less that 25% of the total Parkland Improvement Security given for faithful performance of the improvement work and that the security shall not be reduced to an amount less than 50% of the total Parkland/Landscape Improvement Security given for faithful performance until expiration of the maintenance period and final completion and acceptance of the improvement work. In no event shall the Director of Community Services authorize a release of the Parkland/Landscape Improvement Security, which would reduce such security to an amount below that required to guarantee the completion of the improvement work and any other obligation imposed by this Agreement. c. Security given to secure payment to the contractor, his or her subcontractors and to persons furnishing labor, materials or equipment shall, six months after the completion and acceptance of the work, be reduced to an 9 RIKITCHEL, JanetlBondsl05-0039lParkland Landscape Agreement.doc amount equal to the total claimed by all claimants for whom lien have been filed and of which notice has been given to the legislative body, plus an amount reasonable determined by the Director of Community Services to be required to assure the performance of any other obligations secured by the Security. The balance of the security shall be released upon the settlement of all claims and obligations for which the security was given. d. No security given for the guarantee or warranty of work shall be released until the expiration of the warranty period and until any claims filed during the warranty period have been settled. As provided in paragraph 10, the warranty period shall not commence until final acceptance of all work and improvements by the City Council. e. The CITY may retain from any security released, and amount sufficient to coVer costs and reasonable expenses and fees, including reaso'nable attorney's fees. 7. Iniurv to Public Improvements. Public Property or Public Utilities Facilities. SUBDIVIDER shall replace or have replaced, or repair .or have repaired, as the case may be, all public improvements, public utilities facilities and surveying or subdivision . monuments which are destroyed or damaged or destroyed by reason of any work done under this Agreement. SUBDIVIDER shall bear the entire cost of replacement or repairs of any and all public property on public utility property damaged or destroyed by reason of any work done. Under this agreement whether such property is owned by the United States or any agency thereof, or. the State of California, or any agency or political subdivision thereof, or by the CITY or any public or private utility corporaiion or by any combination or such owners. Any repair or replacement shall be to the satisfaction, and subject to the approval, of the City Engineer. 10 R:IKITCHEL, JanetIBondsl05-0039lParkland Landscape Agreement.doc 8. Permits. SUBDIVIDER shall, at SUBDIVIDER'S expense, obtain all necessary permits and licenses for the construction and installation of the improvements, give all necessary notices and pay all fees and taxes required by law. 9. Default of SUBDIVIDER a. default of SUBDIVIDER shall include, but not be limited to, SUBDIVIDER'S failure to timely commence construction pursuant to this Agreement; SUBDIVIDER'S failure to timely commence construction of the Parkland/Landscape Improvements; SUBDIVIDER'S failure to timely cure the defect in the Parkland/Landscape Improvements; SUBDIVIDER'S failure to perform substantial construction work for a period of 20 calendar days after commencement of the work; SUBDIVIDER'S insolvency, appointment of a receiver, or the filing of any petition in bankruptcy either voluntary or involuntary which SUBDIVIDER fails to discharge within thirty (30) days; the commencement of a foreclosure action against the SUBDIVISION or a portion thereof, or any conveyance in lieu or in avoidance of foreclosure; or SUBDIVIDER'S failure to perform any other obligation under this Agreement. b. The CITY reserves to itself all remedies available to it at law or in equity for breach of SUBDIVIDER'S obligations under this Agreement. The CITY shall have the right, subject to his section, to draw upon or utilize the appropriate security to mitigate CITY damages in event of default by SUBDIVIDER. The right of CITY to draw upon or utilize the security is additional to and not in lieu of any other remedy available to CITY. It is specifically recognized that the estimated costs and security amounts may not reflect the actual cost of construction or installation of Parkland/Landscape Improvements and, therefore, CITY damages for SUBDIVIDER'S default shall be measured by the cost of completing the required improvements. The sums provided by the improvement security may be 11 R:IKITCHEL, JanetlBondsl05-0039\Parkland Landscape Agreement.doc used by CITY for the completion of the Parkland/Landscape Improvements in accordance with the Parkland/Landscape Improvement Plans and specifications contained herein. In the event of SUBDIVIDER'S default under this Agreement, SUBDIVIDER authorizes CITY to perform such obligation twenty days after mailing written notice of default to SUBDIVIDER and to SUBDIVIDER'S Surety, and agrees to pay the entire cost of such performance by CITY. CITY may take over the work and prosecute the same to completion, by contract or by any other method CITY may deem advisable, for the account and at the expense of SUBDIVIDER, and SUBDIVIDER'S Surety shall be liable to CITY for an excess. cost or damages occasioned CITY thereby; and, in such event, CITY without liability for so doing, may take possession of, and utilize in completing the work, such materials, appliances, plan and other property belonging to SUBDIVIDER as may be on the site of the work and necessary for performance of the work. c. Failure of SUBDIVIDER to comply with the terms of this Agreement shall constitute consent to the filing by CITY of a notice of violation against all the lots in the SUBDIVISION, or to rescind the approval or otherwise revert the SUBDIVISION to acreage. The remedy provided by this Subsection C is in addition to and not in lieu of other remedies available to - CITY. SUBDIVIDER agrees that the choice of remedy or remedies for SUBDIVIDER'S breach shall be in the discretion of CITY. 12 RIKITCHEL, JanetIBondsl05-0039lParkland Landscape Agreement.doc d. In the event that SUBDIVIDER fails to perform any obligation hereunder, SUBDIVIDER agrees to pay all costs and expenses incurred by CITY in securing performance of such obligations, including costs of suit and reasonable attorney's fees. e. The failure of CITY to take an enforcement action with respect to a default, or to declare a breach, shall not be construed as a waiver of that default or breath or any subsequent default or breach of SUBDIVIDER. 10. Warranty. SUBDIVIDER shall guarantee or warranty the work done pursuant this Agreement for a period of one year after expiration of the maintenance period and final acceptance by the City Council of the work and improvements against any defective work or labor done or defective materials furnished. Where Parkland/Landscape Improvements are to be constructed in phases or sections, the one year warranty period shall commence after CITY acceptance of the last completed improvement. If within the warranty period any work or improvement or part of any work or improvement done, furnished, installed, constructed or caused to be done, furnished, installed or constructed by SUBDIVIDER fails to fulfill any of the requirements of this Agr.eement or the Parkland/Landscape Improvement Plans and specifications referred to herein, SUBDIVIDER shall without delay and without any cost to CITY, repair or replace or reconstruct any defective or otherwise unsatisfactory part or parts of the work or structure. Should SUBDIVIDER fail to act promptly or in accordance with this requirement, SUBDIVIDER hereby authorizes CITY, at CITY option, to perform the work twenty days after mailing written notice of default to SUBDIVIDER and to SUBDIVIDER'S Surety and agrees to pay the cost of such work by CITY. Should CITY determine that an urgency requires repairs or replacements to be made before SUBDIVIDER can be notified, CITY may, in its sole discretion, make the necessary 13 R:IKITCHEL, JanetlBondsl05-0039lParkland Landscape Agreement.doc repairs or replacements or perform the necessary work and SUBDIVIDER shall pay to CITY the cost of such repairs. 11. Subdivider Not Aqent of City. Neither SUBDIVIDER nor any of SUBDIVIDER'S agents or contractors are or shall be considered to be agents of CITY in connection with the performance of SUBDIVIDER'S obligations under this Agreement. 12. Iniurv to Work. Until such time as the Parkland/Landscape Improvements are accepted by CITY, SUBDIVIDER shall be responsible for and bear the risk of loss to any of the improvements constructed or installed. CITY shall not, nor shall any officer or employee thereof, be liable or responsible for any accident, loss or damage, regardless of cause, happening or occurring to the work or improvements specified in this Agreement prior to the completion and acceptance of the work or improvements. All such risks shall be the responsibility of and are hereby assumed by SUBDIVIDER. 13. Other Aqreements. Nothing contained in this Agreement shall preclude CITY from expending monies pursuant to agreements concurrently or previously executed between the parties, or from entering into agreement with other subdividers for the appointment of costs of water and sewer mains, or other improvements, pursuant to the provisions of the CITY ordinances providing therefore, nor shall anything in this Agreement commit CITY to any such apportionment. 14. SUBDIVIDER'S Obliqation to Warn Public Durinq Construction. Until final acceptance of the Parkland Improvements, SUBDIVIDER shall give good and adequate warning to the public of each and every dangerous condition existent in said improvements, and will take all reasonable actions to protect the public from such dangerous condition. 15. Vestinq of Ownership. Upon acceptance of work on behalf of CITY and recordation of the Notice of Completion, ownership of the improvements constructed pursuant to this Agreement shall vest in CITY. 14 R:IKITCHEL, JanetlBondsl05-0039lParkland Landscape Agreement.doc 16. Final Acceptance of Work. Acceptance of the work on behalf of CITY shall be made by the City Council upon recommendation of the Director of Community Services after final completion and inspection of all Parkland/Landscape Improvements. The Board of Directors shall act upon the Director of Community Services recommendations within thirty (30) days from the date the Director of Community Services certifies that the work has finally completed, as provided in Paragraph 5. Such acceptance shall not constitute a waiver of defects by CITY. 17. Indemnity/Hold Harmless. CITY or any officer or employee thereof shall not be liable for any injury to persons or property occasioned by reason of the acts or omissions of SUBDIVIDER, its agents or employees in the performance of this Agreement. SUBDIVIER further agrees to protect and hold harmless CITY, its officials and employees from any and all claims, demands, causes of action, liability or loss of any sort, because of, or arising out of, acts or omissions or SUBDIVIDER, its agents or employees in the performance of this Agreement, including all claims, demands, causes of action, liability, or loss because of, or arising out of, in whole or in part, the design or construction of the Parkland/Landscape Improvements. This indemnification and Agreement to hold harmless shall extend to injuries to persons and damages or taking of . property resulting from the design or construction of the Parkland/Landscape Improvements as provided herein, and in addition, to adjacent property owners as a consequence of the diversion of waters from the design or construction of public drainage systems, streets and other public improvements. Acceptance of any of the Parkland/Landscape Improvements shall not constitute any assumption by the CITY of any responsibility for any damage or taking covered by this paragraph. CITY shall not be responsible for the design or construction of the Parkland/Landscape Improvements pursuant to the approved Parkland/Landscape Improvement Plans, regardless of any negligent action or inaction taken by the CITY in approving the plans, unless the 15 RIKITCHEL, JanetlBondsl05-0039\Parkland Landscape Agreement.doc particular improvement design was specifically required by CITY over written objection by SUBDIVIDER submitted to the Director of Community Services before approval of the particular improvement design, which objection indicated that the particular improvement design was dangerous or defective and suggested an alternative safe and feasible design. After acceptance of the Parkland/Landscape Improvements, the SUBDIVIDER shall remain obligated to eliminate any defect in design or dangerous condition caused by the design or construction defect, however, SUBDIVIDER shall not be responsible for routine maintenance. Provisions of this paragraph for Parkland/Landscape Improvements shall remain in full force and effect for ten years following the acceptance by the CITY. It is the intent of this section that SUBDIVIDER shall be responsible for all liability for design and construction of the Parkland/Landscape Improvements installed or work done pursuant to this Agreement and the CITY shall not be liable for any negligence, nonfeasance, misfeasance or malfeasance in approving, reviewing, checking, or correcting any plans or specifications or in approving, reviewing or inspecting any work or construction. The improvement security shall not be required to coyer the provision of this paragraph. 18. Sale or Disposition of SUBDIVISION. Sale or other disposition of this property will not relieve SUBDIVIDER from the obligations set forth herein. If SUBDIVIDER sells the property or any portion of the property within the SUBDIVISION to any other person, the SUBDIVIDER may request a novation of this Agreement and a substitution of security. Upon approval of the novation and substitution of securities, the SUBDIVIDER may request a release or reduction of the securities required by this Agreement. Nothing in the novation shall relieve the SUBDIVIDER of the obligations under Paragraph 17 for the work or improvement done by SUBDIVIDER. 16 . R:IKITCHEL, JanetlBondsl05-0039lParkland Landscape Agreement.doc , 19. Time of the Essence. Time is of the essence of this Agreement. 20. Time for Completion of Work Extensions. SUBDIVIDER shall complete construction of the improvements required by this Agreement no later than 7/1 /,;} 00 7 / In the event good cause exists as determined by the City Engineer, and if otherwise permitted under the tentative map condition, the time for completion of the improvements hereunder may be extended. The extension shall be made by writing executed by the Director of Community Services. Any such extension may be granted without notice to SUBDIVIDER'S Surety and shall not affect the validity of this Agreement or release the Surety or Sureties on any security given for this Agreement. The Director of Community Services shall be the sole and final judge as to whether or not good cause has been shown to entitle SUBDIVIDER to an extension. Delay, other than delay in the commencement of work, resulting from im act of CITY, or by an act of God, which SUBDIVIDER could not have reasonably foreseen, or by storm or inclement weather which prevents the conducting of work, or by strikes, boycotts, similar actions by employees or labor organizations, which prevent the conducting or work, and which were not caused by or contributed to by SUBDIVIDER, shall constitute good cause for an extension of time for completion. As a condition of such extension, the Director of Community Services may require SUBDIVIDER to furnish new security guaranteeing performance of this Agreement as extended in an increased amount as necessary to compensate for an increase in construction costs as determined by the Director of Community Services. 21. No Vestinq of Riqhts. Performance by SUBDIVIDER of this Agreement shall not be construed to vest SUBDIVIDER'S rights with respect to any change in any change in any zoning or building law or ordinance. 17 R:IKITCHEL, JanetlBondsl05-0039lParkland Landscape Agreement.doc 22. Notices. All notices required or provided for under this Agreement shall be in writing and delivered in person or sent by mail, postage prepaid and addressed as provided in this Section. Notice shall be effective on the date it is delivered in person, or, if mailed, on the date of deposit in the United States Mail. Notices shall be addressed as follows unless a written change of address is filed.with the City: Notice to CITY: City Clerk City of Temecula 43200 Business Park Drive P.O. Box 9033 Temecula, CA 92589-9033 Notice to SUBDIVIDER: 9JrAt-rDAt2S:> ~Ml-t=\(\" (1~-:;>. 'lrorn. e.Kl~('f)N SI.,-sTE- '2.CD Co"oN~\ CPr C\tL.'iS',q 'l'--'\ tQHf\tL ;T. (AJl-hTE. Contact Phone No. uta\ - 0/'2..- 'b~ 00 Name/Address: Contact Name: 23. Severability. The provisions of this Agreement are severable. If any portion of this Agreement is held invalid by a court of competent jurisdiction, the remainder of the Agreement shall remain in full force and effect unless amended or modified by the mutual consent of the parties. 24. Captions. The captions of this Agreement are for convenience and reference only and shall not define, explain, modify, limit, exemplify, or aid in the interpretation, construction or meaning of any provisions of this Agreement. 25. Utiqation or Arbitration. In the event that suit or arbitration is brought to enforce the terms of this contract, the prevailing party shall be entitled to litigation costs and reasonable attorney's fees. 18 R:\Development Services Forms\Bonds\Parkland Landscape Agreement.doc 26. Incorporation of Recitals. The recitals to this agreement are hereby incorporated into the terms of this agreement. 27. Leqal Responsibilities. The Subdivider shall keep itself informed of all local, State and Federal laws and regulations which in any manner affect those employed by it or in any way affect the performance of its obligations pursuant to this Agreement. The Subdivider 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 Subdivider to comply with this section. 28. Entire Aqreement. This Agreement constitutes the entire Agreement of the parties with respect to the subject matter. All modifications, amendments, or waivers of the terms of this Agreement must be in writing and signed by the appropriate representative of the parties. In the case of the CITY, the appropriate party shall be the City Manager. 19 RIKITCHEL, JanetlBondsl05-0039lParkland Landscape Agreement.doc IN WITNESS WHEREOF, this Agreement is executed by CITY, by and through its Mayor. SUBDIVIDER By: M Name: AdoL)f)T ~~ AUTHORIZED REP. Title: By: Name: M \ crt Title: TEMECULA COMMUNITY SERVICES DISTRICT BOARD By: Name: Jeff Comerchero Title: President e. (Proper Notarization of SUBDIVIDER'S signature is required and shall be attached) ATTEST: By: Susan W. Jones, MMC, City Clerk RECOMMENDED FOR APPROVAL: By: William G. Hughes, Director of Public Works/City Engineer By: Herman D. Parker Director of Community Services APPROVED AS TO FORM: By: Peter Thorson City Attorney R:\Development Services Forms\Bonds\Parkland Landscape Agreement.doc 20 CALIFORNIA ALL.PURPOSE ACKNOWLEDGEMENT County of Riverside } SS. State of California On February 17, 2006 Date before me, Lilia Reyes-Torre, Notary Public Name and Title of Officer personally appeared August Belmont and Michael J. White ------------------------------------------------------------ [2] personally known to me o proved to me on the basis of satisfactory evidence I--~---------J @ LILIA REYES.TORRE -.. Commtaslon # 1570893 ~ -a:. Notary Public - Call1omla ~ t . , Riverside County t . MvComm.ExplresApr19.2009 ----------------- to be the person(s) whose name(s) ....are subscribed to the within instrument and acknowledged to me that _/they executed the same in _/their authorized capacity(ies), and that by _their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. .___.mnmnnnnnnm__..._______..nnnnnnnnmn....___OPTIONALnnnnnnnn000000......_.__.:_____.__'_._'0000.000000000000000000 Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. Pescription of Attached Document Title or Type of Document: Document Date: Number of Pages: Signer(s) Other Than Named Above: Capacity(ies) Claimed by Signer Signer's Name: o Individual [2] Corporate Officer~ Title(s): Authorized Reps. o Partner-? Limited? General o Attorney-in-Fact o Trustee D Guardian or Conservator o Other: RIGHT THUMBPRINT OF SIGNER Signer Is Representing: EXHIBIT A (Attach the basis for the estimate of the cost of improvements.) 21 RIKITCHEL, JanetlBondsl05-0039\Parkiand Landscape Agreement.doc SENT ~Y: CITY OF TEMECULAj - ~~n' ~u Ub u~:U'lp 9096946488 j FEB-15-06 1:09PMj /700J 944-8943 PAGE 2/3 1".3 PELA AJRCJHIT.IB1RlRA DESIGN GROUP WOLF CREEK TRACT NO. 30948XITY OF TEMECULA OPINION OF PROBABLE CONSTRUCTION COSTS STANDARD PAl.1FJC HOMES DATE: 1-23-{)6 CREATED BY: KSM ~07~[)t)~1 ITEM OUANTITY UNIT UNIT PRICE ITEM COST LANDSCAPE CONsTRue-nON -EARTHWORK/GRADING Soil Prep /Fine Grading 125100 S.F. $0.45 $%295.00 -CONCRErEAND.PAVING Concrete Pavillg -light broom finish 39579 S.F. S4.00 S158,316.00 Light add etch Conterete wI ]2" wide banding 2039 S.P. S5.50 $11,214.50 6" Concrete Paving. 242 S.P. S6.5O $1,573.00 6" Concrete M(')w~trip 1922 L.S. $10.50 $20,181.00 Grass Pave(planted arid irrigated) 7090 S.P. $6.00 $42,540.00 ,(),u;lum S'lbtotal $233,824.50 -SITE AMENmES . 8' Concrete Picnic Table 5 EA. $1,400.00 $7,000.00 Trash Receptacles 3 EA. SI,OOO.DO $3,000.00 7' Precast Concrete Bench 4 EA. SI,200.00 S4,800.00 ..Rubber Surfacing.. 3-lIZ".concrete base 2494 S.F. $12.95 $32297.30 Post Mount Picnic Grill 3 L.S. $400.00 SI.2oo.0o E~ercis<> Equipment 3 EA. $3,180.00 $9S40.00 Seclio" Subtolal $57,837.30 -BUILDINGS AND StRUCruRES 24' Hexigon Shade Siraclures 1 EA. S19,5OO.00 $19,500.00 Tot-Lot Play Structure 1 EA. S57,820.00 $57,820.00 Section Subtotal $77,320.00 LANDSCAPE CONSTRUCTlON SUBTOTAL $425,276.80 LANDSCAPE FLANI'INC . -TREES 24" Box Tree 166 EA. $220.00 $36,520.00 36" Bo~ Tree 27 EA. S550.00 S.ction Sublotal $36,520.00 -SHRUBS 1 Callon 8888 EA. $7.00 $62,216.00 5 Gallon 5245 EA. $16.00 $83.920.00 Seclion Subtolal $146,/36.00 -CROUNDCOYER Seed 36622 S.F. $0.08 $2.929.76 Groundoover at 12" 0:':. 93150 S.H SO.15 $13,972.50 Section SuI,toli:11 $16,902.26 LANDSCAPE PLANTrNC SUBTD1:4.L $199,558.26 10221.A TrademarkStreel, Rancho Cueamonga, CA 91730 (909) 484-2800 Fax (909) 484-2802 Page I of2 SENT BY: CITY OF TEMECULA; Jah"30 06 06:07p 9096946488 ; FEB-IS-06 1:09PM; (760) 944-8943 PAGE 313 p.4 PELA ARCHITERRADES][GN GROUP LANDSCAPE IRRIGATION Automatic Irrigation System - Common Areas LANDSCAPE IRRIGATION SUBTOTAL 12S100 S.F. $1.25 $156,375.00 Section SI/btollll $lS6,375.IJIJ $156,.375.00 $781,210.06 $156,242.01 $937,452.07 176544 S.I'. $5.31 TOTAL 20% CONTINGENCY GRAND TOTAL Cost ptr Sqllare Fool 10221-A Trademark Slree!'. Rancho Cucamonga, CA 91730 (909) 484-2800 Fax (909) 484-2802 Page2of2 CITY OF TEMECULA PARKLAND/LANDSCAPE FAITHFUL PERFORMANCE BOND BOND NO. 08832549 ~REMIUM: $7,500.00/2 Years WHEREAS, the City of Temecula, State of California, and Standard Pacific (hereinafter designated as "Principal") haye entered into an Agreement whereby Principal agrees to install and complete certain parkland improvements, which said Agreement, dated nETS n1t... 20c;.h and identified as Wolf Creek Linear Park - Phase 2 - CSD05-0039, is hereby referred to and made a part hereof; and WHEREAS, Principal is required under the terms of the Agreement to furnish a bond for the Faithful Performance of the Agreement; NOW, THEREFORE, we the Principal and Fidelitv and DeDOSit COlll1Janv of Maryland as surety, are held and firrnly bound unto the City of Ternecula, California, in the penal sum of $937,452.0<f.lawful money of the United States, for the payment of such sum well and truly to be made, we bind ourselves, our heirs, successors, executors and administrators, jointly and seyerally. The condition of this obligation is such that the obligation shall become null and void if the aboye-bounded Principal, his or its heirs, executors, administrators, successors, or assigns, shall in all things stand to, abide by, well and truly keep, and perform the coyenants, conditions, and provisions in the Agreement and any alteration thereof made as therein provided, on his or their part, to be kept and performed at the time and in the rnanner therein specified, and in all respects according to his or their true intent and meaning, and shall indemnify and save harmless the City of Temecula, its officers, agents, and employees, as therein stipulated; otherwise, this obligation shall be and remain in full force and effect. As a part of the obligation secured hereby and in addition to the face amount specified therefore, there shall be included costs and reasonable expenses and fees, including reasonable attorney's fees, incurred by City in successfully enforcing such obligation, all to be taxed as costs and included in any judgment rendered. *Nine Hundred Thirty Seven Thousand Four Hundred Fifty Two and 00/100 R:\KITCHEL, J8net\Bol\ds\05~0039\parkland landscape faithful performance.doc 02/D 112006 The surety hereby stipulates and agrees that no change, extension of time, alteration or addition to the terrns of the Agreement or to the work to be performed there under or the specifications accompanying the same shall in anyway affect its obligations on this bond, and it does hereby waive notice of any such change, extension of time, alteration or addition to the terms of the Agreement or the work or to the specifications. IN WITNESS WHEREOF, this instrument has been duly executed by the Principal and Surety above named, on Februarv 8 , 20 06 (Seal) (Seal) S~R ~~ PRINCIP L Fi. Ot d. De 0 it C pany of Maryland . B. ~f_ ~A~ By. Christine Maestas . AUGUST BELMONT (Name) AUTHORIZE~~fSEN1AIIYI:: Attornev-in-Fact (Title) By: -.- -Y\ \~\tf\{::; J. Wtrr€, (Name) AUTHORIZED REP. (Title) APPROVED AS TO FORM: Peter Thorson, City Attorney R:\KJTCHEL, Janct\Bonds\05w0039\parkland I.andscape faithful perfonnance.doc 02/01/2006 CALIFORNIA ALL-PURPOSE ACKNOWLEDGEMENT County of Riverside } SS. State of California On February 17, 2006 Date before me, Lilia Reyes-Torre, Notary Public Name and Title of Officer personally appeared August Belmont and Michael J. White ------------------------------------------------_______________ [2] personally known to me o proved to me on the basis of satisfactory evidence LILIA REYES-TORRE Commission # 1570893 Notary Public. Collfomlo ~ Riverside County MyComm. ExplresApr 19, 2009 to be the person(s) whose name(s) <Glare subscribed to the within Instrument and acknowiedged to me that helshefthey executed the same in __/their authorized capacity(ies), and that by "'-/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. ------------------------------------m---------------m-------------OPTIONAL-----------__________________________________________________________. Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. Description of Attached Document Title or Type of Document Document Date: Number of Pages: Signer(s) Other Than Named Above: Capacity(ies) Claimed by Signer Signer's Name: o Individual [2] Corporate Officer - Title(s): Authorized Reps. o Partner-? Limited? Generai o Attorney-in-Fact o Trustee o Guardian or ConservaIDr o Other: RIGHT THUMBPRINT OF SIGNER Signer Is Representing: STATE OF California } SS. COUNTY OF Oranqe .On February 8th, 2006 . before me. Lisa A. Cushing, Notary: Public l'ERSONAUY APPEARED Christine Maestas - - personally known ta me (or proved to me OIl the basis of sati:ifat:tory evidence) to be the per.wn(s) whose nam.e(s) is/are subscribed to the within imurumerU aJld acknowledged If) me that he/she./tfwy executed l.-~f.-~-l the "ame in hi<fherltheir authorized capadty(ies), and that by hislherllheu' .rigllature(s) (m the instrumem the person(s), or the entity upon behalf oj'which the person(s) acted. executed the instrument. Notary Public - CalKomIo Orange County ~J WITNESS my hcmd rmd oJJicial.,eal. MvCanm. ElcpifesJan 10. 2010 Sigllature ~ (). ~L Thi.t .an:>..a for Official Notarial Seal OPTIONAL . Though the data below Is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachmenl of this fotm. CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATIACHED DOCUMENT o INDIVIDUAL Faithful Performance o CORPORATE OFACER Bond No. 08832549 TITLE OF 1YPE' OF DOCUMENT - llTlE($) o PARTNER(S) o L1MITEP o GENERAL Two J]J ATTORNEY-iN-FACT NUMBER OF PAGES --_.- o TRUSTEE(S) o GUARDIANlCONSERYATOR o OTHER: ------- ~------ February 8th, 2006 ------ DATE OF DOCUMENT SIGNER IS REPRESENTING: NAMe; OF ~SON(S) OR ENT1TVOES} Fidelity and Dep.osit .!;omp~_~.f Maryland Standard Pacific Corp., a Delaware Corporation SIGNER(S) OTHER THAN NAMED ABOYE 10-1232 (REV. 5/01) ALL.PURPOSE ACKNOWLEDGEMENT BOND NO. 08832549 PREMIUM: Included in charge for Performance Bond CITY OF TEMECULA PARKLAND/LANDSCAPE LABOR AND MATERIALS BOND WHEREAS, the City of Ternecula, State of California, and Standard Pacific, (hereinafter designated as "Principal") haye entered into an Agreement whereby Principal agrees to install and complete certain Parkland Improvements, which said Agreement, dated t&-O I? -f-.-. , 200,,", and identified as Wolf Creek Linear Park - Phase 2 - CSD05-0039, is hereby referred to and made a part hereof; and WHEREAS, under the terrn of said Agreement, Principal is required before entering upon the performance of the work, to file a good and sufficient payment bond with the City of Temecula, to secure the claims to which reference is made in Title 15 (commencing with Section 3082) of Part 4 of Division 3 of the Civil Code of the State of California; and NOW, THEREFORE, we the principal and Fidelitv and Deposit COIII)lany of Manland as Surety, are held and firmly bound unto the City of T emecula, California, and all contractors, subcontractors, laborers, material men, other persons employed in the performance of the aforesaid Agreement and referred to In Title 15 of the Civil Code, in the penal sum of $468,726.0cf, lawful money of the United States, for rnaterials furnished or labor thereon of any kind, or for amounts due under the Unemployment Insurance Act with respect to such work or labor, that Surety will pay the same in an amount not exceeding the amount set forth. *Four Hundred Sixty Eight Thousand Seven Hundred Twenty Six and 00/100 R:IKITCHEL, Janet\BondsI05-oo39Iparkland landscape labor and materiais bond.doc Page 1 of3 As a part of the obligation secured hereby and in addition to the face amount specified therefore, there shall be included costs and reasonable expenses and fees, including reasonable attorney's fees, incurred by City in successfully enforcing such obligation, all to be taxed as costs and included in any judgment rendered. It is hereby expressly stipulated and agreed that this bond shall insure to the benefit of any and all persons, companies and corporations entitled to file clairns under Title 15 (commencing with Section 3082) of Part 4 of Division 3 of the Civil Code, so as to give a right of action to them or their assigns in any suit brought upon this bond. If the condition of this bond is fully performed, then this obligation shall become null and void; otherwise, it shall be and remain in full force and effect. The surety hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of the Agreement or to the work to be performed there under or the specifications accompanying the same shall in anyway affect its obligations on this bond, and it does hereby waive notice of any such changes, extension oftime, alteration or addition to the terms of the Agreement or to the work or to the specifications. R:IKITCHEL, JanetIBondsl05-0039\parkland landscape labor and materials bond,doc Page 2 of3 IN WITNESS WHEREOF, this instrument has been duly executed by the Principal and Surety above narned, on February 8 , 2006 (Seal) (Seal) SUR~ D. L~___ _'" ; PRINCI~L Standard Pacific Corp_. r{y~de~t~ MarylandBy: ~ e1aware Corporation Christine Maestas .. AUGUST BELMONT (Name) AUTHORIZED l:fiIlll'ffiSj:NTATlVE Attorney-in-Fact (Title) By: AUTHQR,I~iREP.i~. (Title) APPROVED AS TO FORM: Peter Thorson, City Attorney R:\KITCHEL, Janet\Bonds\OS.0039\parkland landscape labor and mate6als bond.doc Page 3 of 3 CALIFORNIA ALL-PURPOSE ACKNOWLEDGEMENT County of Riverside } SS. State of California On February 17, 2006 Date before me, Liiia Reyes-Torre, Notary Public Name and Title of Officer personally appeared August Belmont and Michael J. White --------------------------------------------------------------------- . [2] personally known to me o proved to me on the basis of satisfactory evidence lIUA REVES-TORRE @'commISSlon#1570893i ~ a: Notary Public - California ~ ~. Riverside County t . _ _ _ ~:or:m:..~res_~19..:.2~9 to be the person(s) whose name(s) """,are subscribed to the within instrument and acknowledged to me that _Ithey executed the same in ~their authorized capacity(ies), and that by AieIRefItheir signature(s) on the instrument the person(s), or the entity upon behaif of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. ~ --------------------------............---------------.................OPTIONAL----------------...----------------------------......__.............__ Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. Pescrlption of Attached Document Title or Type of Document: Document Date: Number of Pages: Signer(s) Other Than Named Above: Capacity(ies) Claimed by Signer Signer's Name: o Individual [2] Corporate Officer- Title(s): Authorized Reps. o Partner -- ? Limited ? Generai o Attorney-in-Fact o Trustee o Guardian or Conservalor o Other: RIGHT THUMBPRINT OF SIGNER Signer Is Representing: STATE OF California } ~~. COUNTY OF Orange On February 8th, 2006 . before me. Lisa A. Cushing, Notary Public l'BRSONAUY APPEARED Christine Maestas - - -. personally known to me (or proved to me 011 the basis ofsati.~fi;u:tory evidence) to be the person(s) whose name(s) is/tlre ,~ubscribed to the within instrument alla acknowledged to lne that he/she/they executed the same in hi'ilherltheir aurlwriwd capacity( le.I), and that by hislherltheir 1& - ""-,0.;,.:.- - I .rignature(s) OIl the instrument tllP. person(s), or the entity upon behalf' oj'which the person(s) acted. executed the instrument. commI$SIon # 1636832 I ~ Nola1V PuIlIIC . CaII1om1a WiTNESS my hand and official "eat. ~ orange County d Signature ~'- Q, e,k _ _ _ ~~:...~_~10:20; This are'<lfor Official Notarial Seal OPTIONAL Though the data below Is nol required by law, it may prove valuabie to persons relying on the document and couid prevent fraudulent reattachment of this fonm. CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT o INDIVIDUAL Labor & Materials o CORPORATEOFFlCER Bond No. 08832549 TITLE OF TYPE OF DOCUMENT - l1TlE(S) o PARTNER(S) o LIMITED o GENERAL Three 1]1 ATTORNEY-iN-FACT NUMBER OF PAGES -.- o TRUSTEE(S) o GUARDIAN/CONSERVATOR o OTHER:_______________.._ ..,"--_.,-_..- February 8tl), 2006 ----.-.---------- .-._--_. DATE OF DOCUMENT SIGNER IS REPRESENTING: NAMe OF PEASONtS) OR ENTlTYllES) Fideli!Y.J!nd D~sit Compa~f Maryland .-- Standard Pacific Corp., a Delaware Corporation - SIGNER(S) OTHER THAN NAMED ABOYE ID-1232 (REV. 5/01) ALL-PURPOSE ACKNOWLEDGEMENT Power of Attorney FIDELITY AND DEPOSIT COMPANY OF MARYLAND KNOW ALL MEN BY THESE PRESENTS: That the FIDELITY AND DEPOSIT COMPANY OF MARYLAND, a corporation of the State of Maryland, by PAUL C. ROGERS, Vice President, and T. E. SMITH, Assistant Secretary, in pursuance of authority granted by Article VI, Section 2, of the By-Laws of said Company, w~q-;n;e set forth on the reverse side hereof and are hereby certified to be in full force and effect on the date here~of ,d\,\,slJs~~nate, constitute and appoint Paul A. BLAND, Dana L. DOWERS, Christine MAESTAS JlI!<\~ ~~ ' fIrvine, California, EACH its true and lawful agent and Attorney-in-Fact, to mak e. ,,~~It' ~~"fflI' ~~\ . behalf as surety, and as its act and deed: any and all bonds and under! W ,~. ,L~~cli~~~ r undertakings in pursuance of these presents, shall be as binding upon,~~ " . iii1'61 J'1d~'I'i!9'Jt1'kiifents and purposes, as if they had been duly executed and acknowl~~j(\!}~Wllriy~ele. n~yMJCompany at its office in Baltimore, Md., in their own proper personsr;;!i~~rlJ'atttS~ ~\\ \. eif on behalf of Paul A. BLAND, Dana L. DOWERS, Christine MAEST AS, KatheI'1\:#~~A~~nro'RA, dated July 17, 2003. The said Assistant ~Jl9.~\Ile~rb), certifY that the extract set forth on the reverse side hereof is a true copy of Article VI, Section 2, of the By-U;?Mirid Company, and is now in force. IN WITNESS WHEREOF, the said Vice-President and Assistant Secretary have hereunto subscribed their names and affixed the Corporate Seal ofthe said FIDELITY AND DEPOSIT COMPANY OF MARYLAND, this 22nd day of January, A.D. 2004. ATTEST: FIDELITY AND DEPOSIT COMPANY OF MARYLAND ~v~ By: Assistant Secretwy Paul C. Rogers ~ T. E. Smith Vice President State of Maryland } ss: City of Baltimore On this 22nd day of January, A.D. 2004, before the subscriber, a Notary Public of the State of Maryland, duly commissioned and qualified, came PAUL C. ROGERS, Vice President, and T. E. SMITH, Assistant Secretary of the FIDELITY AND DEPOSIT COMPANY OF MARYLAND, to me personally known to be the individuals and officers described in and who executed the preceding instrument, and they each acknowledged the execution of the same, and being by me duly sworn, severally and each for himself deposeth and saith, that they are the said officers of the Company aforesaid, and that the seal affixed to the preceding instrument is the Corporate Seal of said Company, and that the said Corporate Seal and their signatures as such officers were duly affixed and subscribed to the said instrument by the authority and direction of the said Corporation. IN TESTIMONY WHEREOF, I have hereunto set my hand and affixed my Official Seal the day and year first above written. f!i/,/U~J Dennis R. Hayden Notary Public My Commission Expires: February I, 2005 POA-F 012-0038 CITY OF TEMECULA BOND NO.. 01l1l32549-A PREKIUM: Included in charge for Performance Bond PARKLAND/lANDSCAPE WARRANTY BOND WHEREAS, the City of Temecula, State of California (hereinafter designated as "City"), and Standard Pacific (hereinafter designated as "Principal") have entered into an Agreement whereby Principal agrees to install and complete certain designated Parkland Irnprovements, which said Agreement, dated Fp f3, n--tz-.- 20 0 " ,and identified as Wolf Creek Linear Park - Phase 2 - CSD05-0039, is hereby referred to and made a part hereof; and WHEREAS, Principal is required to warranty the work done under the terms of the Agreement for a period of one (1) year following acceptance thereof by City against any defective work or labor done or defective materials furnished, in the arnount of ten percent (10%) of the estirnated cost of the improyements; of Maryland NOW, THEREFORE, we the Principal and Fidelitv and Deposit Company! as surety, are held and firmly bound unto the City of Temecula, California, in the penal sum of $93,745.00~lawful money ofthe United States, for the payment of such sum well and truly to be made, we bind ourselyes, our heirs, successors, executors and administrators, jointly and severally. The condition of this obligation is such that the obligation shall become null and void if the above-bounded Principal, his or its heirs, executors, administrators, successors, or assigns shall in all things stand to, abide by, well and truly keep, and perforrn the covenants, conditions, and proyisions in the Agreernent and any alteration thereof made as therein proyided, on his or their part, to be kept and performed at the tirne and in the manner therein specified, and in all *Ninety Three Thousand Seven Hundred Forty Five and 00/100 R\KITCHEL. Janet\Bonds\OS-0039\parkland landscape Warranty Bond 1.doc Page 1 of3 respects according to his or their true intent and rneaning, and shall indemnify and save harmless the City of Temecula, its officers, agents, and employees, as therein stipulated; otherwise, this obligation shall be and remain in full force and effect. As a part of the obligation secured hereby and in addition to the face amount specified therefore, there shall be included costs and reasonable expenses and fees, including reasonable attorney's fees, incurred by City in successfully enforcing such obligation, all to be taxed as costs and included in any judgment rendered. The surety hereby stipulates and agrees that no change, extension oflime, alteration or addition to the terms of the Agreement or to the work to be performed hereunder or the specifications accompanying the same shall in anyway affect its obligations on this bond, and it does hereby waive notice of any such change, extension of time, alteration or addition to the terms of the Agreement or to the work or to the specifications. R:\K!TCHEL, Janet\Bonds\OS.0039\parkland landscape Warranty Bend 1.doc Page20f3 IN WITNESS WHEREOF, this instrument has been duly executed by the Principal and Surety above named, on February 8 ,20~. (Seal) (Seal) St.J~ PRINCIPAL Standard Pacific Corp:', ~~~!J 0..Ja~ of Maryland By: ~~~:~rporation Christine Maestas AUGUST BELMONT (Name) AUTHORIZE~SENTATIVE Attorney-in-Fact (Title) By: (Title) AUTHORIZE!) REP. . (Title) APPROVED AS TO FORM: Peter Thorson, City Attorney R:\KITCHEL. Janet\Bondsl05.oo39lparkland land,capeWerranty Bond l.doc Page 3 of 3 CALIFORNIA ALL-PURPOSE ACKNOWLEDGEMENT County of Riverside } SS. State of Caiifornia On February 17, 2006 Date before me, Lilia Reyes-Torre, Notary Public Name and Title of Officer personaiiyappeared August Beimont and Michael J. White -----------------------------------------------________ , [2] personally known to me o proved to me on the basis of satisfactory evidence I------------J ULIA REYES.TORRE @"commISSlon#1570893 ~ . -a: " Notory Public - Caiifornla ~ ~ ' ... Riverside County t ... MyComm. Expl'esApr 19. 2009 --------------- to be the person(s) whose name(s) -ie/are subscribed to the within instrument and aCknowiedged to me that ~/they executed the same in """""""'their authorized capacity(ies), and that by ~/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. ---..--.....------------------.------------------------------------...OPTIONAL...............---...------.......___________......._______...__...... Though the information below is not required by law, it may prove valuable to persons relying on the document and CQuld prevent fraudulent removal and reattachment of this form to another document. Pescription of Attached Document Tille or Type of Document: Document Date; Number of Pages; Signer(s) Other Than Named Above: Capacity(ies) Claimed by Signer Signer's Name: o Individual [2] Corporate Officer- Title(s): Authorized Reps. o Partner -- ? Limited ? General o Attorney-in-Fact o Trustee o Guardian or Conservalor o Other: Signer Is Representing: STATE OF California } SS. COUNTY OF Orange ---- On February 8th, 2006 -. , before me. Lisa A. Cushing, Notary Public PERSONAlLY APPEARED Christine Maestas - "-.-- personally known to me (or pmved to me 0;1-1 the. basis Df sati,~fa(:tory evif.lence) to be the person(s) whose twme(s) is/are subscribed to the within im1rument (md acknowledged to me that he/she/they PJCecCfted the ,<en"e in hirlher/tlreir autlwrized capacity(ieN!, and that by hiN/her/thei,' 18' - ;;"-. ,.;.'" - I signature(s) OJ). the instrument the person(s), Dr the entity upon behalf oj'which the person(s) acted, executed the instrument. _ Commission , 1636832 I . NofaIy PublIc - Call1omIa WITNESS my hand and official "eal. Orange Counly Di MvCanm. Exp/feIJan 10. 2010 Signature ~ o,QL This area for Official Notarial Seal OPTIONAL . Though the data below Is not required by law, it may prove vaiuable 10 persons relying on the document and could prevent fraudulent reattachment of this fonm. CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATIACHED DOCUMENT o INDIVIDUAL Warranty o CORPORATE OFFICER Bond No. 08832549 TITLE OF TYPE OF DOCUMENT llTLE{S) o PARTNER(S) o LIMITED o GENERAL Three ~ ATTORNEY-iN-FACT NUMBER OF PAGES .. o TRUSTEE(S) o GUARDIANlCONSERYATOR o OTHER: --- --------- .'-...,-.,-------.-. February 8th, 2006 -----_._._._-~--------_._-- DATE OF DOCUMENT -. SIGNER IS REPRESENTING: NAME; OFP8'lSON(S) 01'\ ENmv(IES) Fidelit~!!.'lJ:l~p-osit ~om~any of Maryland Standard Pacific Corp., a Delaware Corporation --- . SIGNERfS) OTHER THAN NAMED ABOYE ..-.- ID-1232 (REV. 5/01) ALL-PURPOSE ACKNOWLEDGEMENT Power of Attorney FIDELITY AND DEPOSIT COMPANY OF MARYLAND KNOW ALL MEN BY THESE PRESENTS: That the FIDELITY AND DEPOSIT COMPANY OF MARYLAND, a corporation of the State of Maryland, by PAUL C. ROGERS, Vice President, and T. E. S~IITH, Assistant Secretary, in pursuance of authority granted by Article VI, Section 2, of the By-Laws of said Company, w~~ set forth on the reverse side hereof and are hereby certified to be in full force and effect on the date ~hereof d\'lis~}llllilinate, constitute and appoint Paul A. BLAND, Dana L. DOWERS, Christine MAESTAS Jmll, a ~~,a,Il(of Irvine, California, EACH its truean.d lawful agent and AttorneY-in-. Fact, to mak~ ~~~ ~~\1~~ behalf as surety, and as its act and deed: any and all bonds and nnd~\'W~~~\;;<ec.u)i.n,;.~t.~ndertakingS in pursuance of these presents, shall be as binding upon ~:\~~iiilr"and.'h:@.li\;;;;'lents and purposes, as if they had been duly executed and acknowl~e(i..lry(@;\~y'ely~ r~~Me->t'ompany at its office in Baltimore, Md., in their own proper personst2~~r'liJ'ait6'~_~\\l}<l1li eif on behalf of Paul A. BLAND, Dana L. DOWERS, Christine MAESTAS, Katheri(ijt:;:;t'tl!fA~~i:K0AA, dated July 17,2003. The said Assistant ~;s \Mdrli). certify that the extract set forth on the reverse side hereof is a true copy of Article VI, Section 2, of the By-r1j1~ald Company, and is now in force. IN WITNESS WHEREOF, the said Vice-President and Assistant Secretary have hereunto subscribed their names and affixed the Corporate Seal of the said FIDELITY AND DEPOSIT COMPANY OF MARYLAND, this 22ndday of January, A.D. 2004. ATTEST: FIDELITY AND DEPOSIT COMPANY OF MARYLAND ~V~ By: Assistant Secretary Paul C. Rogers ~ T. E. Smith Vice President State of Maryland } ss: City of Baltimore On this 22nd day of January, A.D. 2004, before the subscriber, a Notary Public of the State of Maryland, duly commissioned and qualified, came PAUL C. ROGERS, Vice President, and T. E. SMITH, Assistant Secretary of the FIDELITY AND DEPOSIT COMPANY OF MARYLAND, to me personally known to be the individuals and officers described in and who executed the preceding instrument, and they each acknowledged the execution of the same, and being by me duly sworn, severally and each for himself deposeth and saith, that they are the said officers of the Company aforesaid, and that the seal affixed to the preceding instrument is the Corporate Seal of said Company, and that the said Corporate Seal and their signatures as such officers were duly affixed and subscribed to the said instrument by the authority and direction of the said Corporation. IN TESTIMONY WHEREOF, I have hereunto set my hand and affixed my Official Seal the day and year first above written. fVpLJ Dennis R. Hayden Notary Public My Commission Expires: February I, 2005 POA-F 012-0038 ITEM NO. 34 Approvals City Attorney Director of Finance City Manager ~~ /JiZ !fr- TEMECULA COMMUNITY SERVICES DISTRICT AGENDA REPORT TO: General Manager/Board of Directors FROM: Herman D. Parker, Director of Community Services DATE: November 14, 2006 SUBJECT: Acceptance of Landscape Bonds and Agreement for Parkways along Wolf Creek Drive South - (Phase II) PREPARED BY: Barbara Smith, Senior Management Analyst RECOMMENDATION: That the Board of Directors accepts the surety bonds and agreement from Wolf Creek Development, LLC to improve perimeter slopes and parkways along Wolf Creek Drive (South). BACKGROUND: The Wolf Creek Development is a large specific plan located in the southwestern portion of the City. Pursuant to the conditions of approval for this development, Wolf Creek Development, LLC is proposing to improve the westerly parkways adjacent to Wolf Creek Drive (South). Landscape plans for these parkways have been reviewed and approved by Temecula Community Services District (TCSD). The acceptance of the bonds and agreement ensure that the landscaping will be installed to TCSD's standard and inspection processes. Once the landscaping is installed and the TCSD has approved the completion of the landscape improvements staff will recommend the appropriate release or reduction of the submitted bonds. TCSD will take over the maintenance responsibilities of the proposed landscaped improvements at the beginning of the next fiscal year after acceptance. The following is information regarding the bonds provided by Fidelity and Deposit Company of Maryland: 1. Faithful Performance Bond No. 08832548 for $860,017.00 2. Labor and Materials Bond No. 08832548 for $430,009.00 3. Warranty Bond No. 08832548 A for $86,002.00 FISCAL IMPACT: be borne by the developer. None. The cost of construction for the perimeter slope areas and will ATTACHMENTS: Vicinity Map Project Map Agreement/Bonds .. .-.... Wolf Creek VICINITY MAP - ., Pechanga Resort and Casino Legend N Highways tT\ 'N. Cente~lne \AI !---ICily i . I Pechenga Reservation -,,/ I' I.. 1000 o 1000 2000 Feet 'INI map WIIl'IlII9 by the cttytl T",*," GeaarIPhIo WorrnatlonSwttm. Thtmapllderlvedfrornbu-,date .............-"'"""...........- .....-...""'-- clRlYtrakleCounly. ThtCltydTemecullll8tlm8llno WlIIrentyorlegelf8lllO'\llJlRlyforthelntomlatloncantalned on thII map. o.a and InformatIan reprIlIenI8d on thll mep nUljecttqUJKllltendmodlflcaUcn, lhe~1c InI'ormatIonSYlttmItldDlher&OUl'C8laho!*l be querkld for the most cumnt Wormeuon. l11Ia map II not for reprIrC 01' reaaIe. MlppnlpMld0ct0blr13,2004 "9-...._____.._ '!' \\\\ ------=- ' II --~J~---~~ ' \7:-,-~7LU/,~/~J.~ ~ . ~ -"91 1FT r F ~/j-:.i.(f- T ' ", \ -rL-1_ .I ,0] / i2 ' , II ~\ ' -c1=-:FJII= ,--, . _ ,( _ --1- J :~ ' \~; p;;;; ~ , ~--, ~.l r "~~i3::::: I ~ \ " ' \ IROJIlID .J lU Ll / I /r- 'L'" 5i I l8UlIlJD 1f}--, I ': ~ll _-' i1 I '\-, i- I r- r--.c ~_ Ii ,I" \ ~ 1:-1", I, h ' ' , 1 LU L' If- .I r.....! ! r-p~" I 'c ~:: - ~ I: 111 1.1_\ : ! . ts12T~' '1k ' IlJ Uli ,JJ '!dllJ/ ~ rn- r]] JIIlSl. - \ - I / f'.r.. ....... L >T / I-- ;. I I'~ :;A, ,: m\LJLI ,'1'T1 ::;: '" L~(--'\ [[L ~ l'I :j ~__---., I ~F\=1 W, J_ -\ I . ".JJ1J TJ' I' ;;=' -' I~ .......'\p .' ~I'l'- ~ryjJLI' If-- ' 'r~ . J. ...... "-JJi " J lr---t""" -l- . . -/1 r--......, , F I~ +, ,=::'v"; ~ I~ ~--., ), \C---J-,L ,- ~ ,::,LLJ'f{..~ _,,-J: l\\~ ,rr ,.I, -il , J 1.1 Il~ ' ,:::::)ffij J: dot == -, ~rr )! 'lmllJ.d '----..,-I/IL ~)~ " IRRUb' 'v~-~~~ - rt- J .-' I ~1 '\'9)'--.. I % I \ 'i ~1J/..J ~/ ~ VD , . II I , .~ ~, ,:j ! , , , \ ~o , --, , ~i l....-, , ~Jl~ -] I c z ~ I , L1.. ~7' '" tl - - - L Ir----- ;g o .... l>l ~ .., li:: :;,.: '1:1 t"< :;,.: ~ t::I I:r.l ~ :;,.: '1:1 l>l t::I :;,.: ::>:l l>l :;,.: City Of Ter:necula Community Services Department 43200 Business Park Drive. Mailing Address: P.O. Box 9033. Temecula, CA 92589.9033 (951) 694'648o . Fax (951) 694-0488 . www.citvoftemecula.oro 60 Name of Subdivision: Tract No.: TR29305 Parkland/Landscape Improvement Plans No.: Referred to as "Landscape Improvements" Estimated Total Cost of Improvements: Estimated Completion Date: Referred to as "Com ietion Date" Wolf Creek Slopes - Parkway South, Phase 2 -- CSD05-0044 Name of Surety: f \ d e.II Address of Surety (street): ;? 0 I Address of Surety (city, state, zip): Contact: Labor and Materials Bond Bond for Warranty 860,017.00 430,009.00 86,002.00 1 R:\Development Services Forms\Bonds\Parkland Landscape Agreement.doc This Agreement is made and entered into by and between the City of Temecula, California, a Municipal Corporation of the State of California, hereinafter referred to as CITY, and the SUBDIVIDER. RECITALS A. SUBDIVIDER has presented to CITY for approval and recordation, a final subdivision map of a proposed subdivision pursuant to provisions of the Subdivision Map Act of the State of California and the CITY ordinances and regulations relating to the filing, approval and recordation of subdivision maps. The Subdivision Map Act and the CITY ordinances and regulations relating to the filing, approval and recordation of subdivision maps are collectively referred to in this Agreement as the "Subdivision Laws." B. A tentative map of the SUBDIVISION has been approved, subject to the Subdivision Laws and to the requirements and conditions contained in the Resolution of Approval. The Resolution of Approval is on file in the Office of the City Clerk and is incorporated into this Agreement by reference. C. SUBDIVIDER is required, as a condition of the approval of the tentative map that the Parkland Improvement plans must be, completed, in compliance with City standards, by the Completion Date. The Subdivision Laws establish as a condition precedent to the approval of a final map, that the SUBDIVIDER has entered into a secured Agreement with the CITY to complete the Parkland/Landscape Improvement Plans within the Completion Date. D. In consideration of approval of a final map for the SUBDIVISION by the City Council, SUBDIVIDER desires to enter into this Agreement, whereby promises to install and complete, at SUBDIVIDER'S own expense, all the Parkland/Landscape Improvement work required by City in connection with proposed subdivision. Subdivider has secured this agreement by 2 R:IKITCHEL, JanetlBondsl05-oo44lParkland Landscape Agreement.doc Parkland/Landscaping Improvement Security required by the Subdivision Laws and approved by the City Attorney. . The term "Parkland" includes landscape areas intended to be maintained by the Temecula Community Services District. E. Complete Parkland/Landscape Improvement Plans for the construction, installation and completion of the Parkland Improvements have been prepared by SUBDIVIDER and approved by the Director of Community Services. The Parkland Improvement Plans numbered as referenced previously in this Agreement are on file in the Office of the Director of Community Services and are incorporated into this Agreement by this reference.. All references in this Agreement to the Parkland Improvement Plans shall include reference to any specifications for the Improvements as approved by the Director of Community Services. . F. An estimate of the cost for construction of the. Parkland Improvements according to the Improvement Plans has been made and approved by the Director of Community Services. The estimated amount is stated on Page 1 of this Agreement. The basis for the estimate is attached as Exhibit "A" to this Agreement. G. The CITY has adopted standards for the construction and installation of Parkland/Landscape Improvements within the CITY. The Parkland/Landscape Improvement Plans have been prepared in conformance with the CITY standards, (in effect on the date of approval of the Resolution of Approval). H. SUBDIVIDER recognizes that by approval of the final map for SUBDIVISION, CITY has conferred substantial rights upon SUBDIVIDER, including the right to sell, lease, or finance lots within the SUBDIVISION, and has taken the final act necessary to subdivide the property within the SUBDIVISION. 3 RIKITCHEL. JanetlBondsl05-oo44lParkland Landscape Agreement.doc As a result, CITY will be damaged to the extent of the cost of installation of the Parkland/Landscape Improvements by SUBDIVIDER'S failure to perform its obligation under this Agreement, including, but not limited to, SUBDIVIDER'S obligation to complete construction of Parkland/Landscape Improvements by the Completion Date. CITY shall be entitled to all remedies available to it pursuant to this Agreement and the Subdivision Laws in the event of a default by SUBDIVIDER. It is specifically recognized that the determination of whether a reversion to acreage or rescission of the SUBDIVISION constitutes an adequate remedy for default by the SUBDIVIDER shall be within the sole discretion of CITY. NOT, THEREFORE, in consideration of the approval and recordation by the City Council of the final map of the SUBDIVISION, SUBDIVIDER and CITY agree as follows: 1. SUBDIVIDER'S Obliqations to Construct Parkland/Landscapinq Improvements. SUBDIVIDER Shall: a. Comply with all the requirements of the Resolution of Approval, and any amendments thereto, and with the provisions of the Subdivision Laws. b. Pursuant to the requirements of Labor Code Section 1720, SUBDIVIDER shall pay prevailing wages for all work performed for the construction, alteration, demolition, installation, or repair for the Parkland/Landscape Improvement Work required by this Agreement. In accordance with the provisions of Section 1773 of the Labor Code of the State of California, the City Council has obtained the general prevailing rate of per diem wages and the general rate for holiday and overtime work in this locality for each craft, classification, or type of workman needed to execute this Contractor from the Director of the Department of Industrial Relations. These rates are on file 4 RIKITCHEL, JanetlBondsl05-oo44lParkiand Landscape Agreement.doc t,< with the City Clerk. Copies may be obtained at cost at the City Clerk's office of the City of Temecula. Subdivider shall post a copy of such wage rates at the job site and shall pay the adopted prevailing wage rates as a minimum. Subdivider shall comply with the provisions of Sections 1773.8, 1775, 1776, 1777.5, 1777.6, and 1813 of the Labor Code and other applicable laws and regulations with respect to the payment of prevailing wages. Pursuant to the provisions of 1775 of the Labor Code, Subdivider shall forfeit to the City, as a penalty, the sum of $25.00 for each calendar day, or portion thereof, for each laborer, worker, or mechanic employed, paid less, than the stipulated prevailing rates for any work done under this Agreement, by it or by any subcontractor under it, in violation of the provisions of the Agreement or in violation of any applicable laws or regulations pertaining to the payment of prevailing wages. c. Complete by the time established in Section 20 of this Agreement and at SUBDIVIDER'S own expense, all the Parkland/Landscape Improvement work required on the Tentative Map and Resolution of Approval in conformance with the Parkland Improvement Plans and the CITY standards: d. Furnish the necessary materials for completion of the Parkland Improvements in conformity with the Parkland Improvement Plans and CITY standards. e. Except for easements or other interested in real property to be dedicated to the Homeowners Association of the SUBDIVISION, acquire and dedicate, or pay the cost of acquisition by CITY, of all rights-of-way, easements and other. interests in real property for construction or installation of the Parkland/Landscape Improvements, free and clear of all liens and encumbrances for the SUBDIVIDER'S obligations with regard to acquisition by CITY of off-site 5 R:IKITCHEL, JanetlBondsl05-oo44lParkland Landscape Agreement.doc rights-of-way, easements and other interests in real property shall be subject to a separate Agreement between SUBDIVIDER and CITY. 2. Acquisition and Dedication of Easements or Riqhts-of-Way. If any of the Parkland/Landscape Improvements and land development work contemplated by this Agreement are to be constructed or installed on land not owned by SUBDIVIDER, no construction or installation shall be commenced before: a. The offer of dedication to CITY or appropriate rights-of-way, easements or other interest in real property, and appropriate authorization from the property owner to allow construction or installation of the Improvements or work, or b. The dedication to, and acceptance by, the CITY of appropriate rights-of-way, easements or other interests in real property, and approved by the Department of Public Works, as determined by the Director of Community Services. c. The issuance by a court of competent jurisdiction pursuant to the State Eminent Domain Law of an order of possession. SUBDIVIDER. shall comply in all respects with order of possession. Nothing in this Section 2 shall be construed as authorizing or granting an extension of time to SUBDIVIDER. 3. Security. SUBDIVIDER shall at all times guarantee SUBDIVIDER'S performance of this Agreement by furnishing to CITY, and maintaining, good and sufficient security as required by the Subdivision Laws on forms approved by CITY for the purposes and in the amounts as follows: a. to assure faithful performance of this Agreement in regard to said improvements in and amount. of 100% of the estimated cost of the Parkland/Landscape Improvements; and 6 R:IKITCHEL, JanetlBondsl05-oo44lParkland Landscape Agreement.doc b. to secure payment to any contractor, subcontractor,. persons renting equipment, or furnishing labor materials for Parkland/Landscape Improvements required to be constructed or installed pursuant to this Agreement in the additional amount of 50% of the estimated cost of the Improvements; and c. to guarantee or warranty the work done pursuant to this Agreement for a period of one year following acceptance thereof by CITY against any defective work or labor done or defective materials furnished in the additional amount of 10% of the estimated cost of the Parkland Improvements. The securities required by this Agreement shall be kept on file with the City Clerk. The terms of the security documents referenced on Page 1 of this Agreement are incorporated into this Agreement by this Reference. If any security is replaced by another approved security, the replacement shall be filed with the City Clerk and, upon filing, shall be deemed to have been made a part of and incorporated into this Agreement. Upon filing of a replacement security with the City Clerk, the former security may be released. 4. Alterations to Parkland Improvement Plans. a. Any changes, alterations or additions to the Parkland/Landscape Improvement Plans and specifications or to the improvements, not exceeding 10% of the original estimated cost if the improvement, which are mutually agreed upon by the CITY and SUBDIVIDER, shall not relieve the improvement security given for faithful performance of this Agreement. In the event such changes, alterations, or additions exceed 10% of the original estimated cost of the improvement, SUBDIVIDER shall provide improvement security for faithful performance as required by Paragraph 3 of this Agreement for 100% of the total estimated cost of the improvement as changed, 7 RIKITCHEL, JanetlBondsl05-oo44lParkland Landscape Agreement.doc altered, or amended, minus any completed partial releases allowed by Paragraph 6 of this Agreement. b. The SUBDIVIDER shall construct the Parkland Improvements in accordance with the CITY Standards in effect at the time of adoption of the Resolution of Approval. CITY reserves the right to modify the standards applicable to the SUBDIVISION and this Agreement, when necessary to protect the public health, safety or welfare or comply with applicable State or federal law or CITY zoning ordinances. If SUBDIVIDER requests and is granted an extension of time for completion of the improvements, CITY may apply the standards in effect at the time of the extension. 5. Inspection and Maintenance Period. a~ SUBDIVIDER shall obtain City inspection of the Parkland/Landscape Improvements in accordance with the City standards in effect at the time of adoption of the Resolution of Approval. SUBDIVIDER shall at all times maintain proper facilities and safe access for inspection of the Parkland Improvements by CITY inspectors and to the shops wherein any work is in preparation. Upon completion of the work the SUBDIVIDER may request a final inspection by the Director of Community Services, or the Director of Community Service's authorized representative. City Council authorizes the Director of Community Services or the Director of Community Services authorized representative to accept the landscaped medians, perimeter slopes, and parks into the Community Services Maintenance System which is funded by the Parks and Lighting Special Tax. b. SUBDIVIDER shall continue to maintain the Parkland/Landscape Improvements for ninety (90) days after they have been certified completed. No improvements shall be finally accepted unless the 8 R:IKITCHEL, JanetlBondsl05-oo44lParkiand Landscape Agreement.doc maintenance period has expired, and all aspects of the work have been inspected and determined to have been completed in accordance with the Parkland/Landscape Improvement Plans and CITY standards. SUBDIVIDER shall bear all costs of inspection and certification. 6. Release of Securities. Subject to approval by CQmmunity Services, the securities required by this Agreement shall be released as follows: a. Security given for faithful performance pf any act, obligation, work or Agreement shall be released upon the expiration of the maintenance period and the final completion and acceptance of the act or work, subject to the provisions of subsection (b) hereof. b. The Director of Community Services may release a portion of the security given for faithful performance of improvement work as the Parkland Improvement progresses upon application therefore by the SUBDIVIDER; provided, however, that no such release shall be for an amount less that 25% of the total Parkland Improvement Security given for faithful performance of the improvement work and that the security shall not be reduced to an amount less than 50% of the total Parkland/Landscape Improvement Security given for faithful performance until expiration of the maintenance period and final completion and acceptance of the improvement work. In no event shall the Director of Community Services authorize a release of the Parkland/Landscape Improvement Security, which would reduce such security to an amount below that required to guarantee the completion of the improvement work and any other obligation imposed by this Agreement. c. Security given to secure payment to the contractor, his or her subcontractors and to persons furnishing labor, materials or equipment shall, six months after the completion and acceptance of the work, be reduced to an 9 RIKITCHEL, JanetlBondsl05-oo44lParkland Landscape Agreement.doc amount equal to the total claimed by all claimants for whom lien have been filed and of which notice has been given to the legislative body, plus an amount reasonable determined by the Director of Community Services to be required to assure the performance of any other obligations secured by the Security. The balance of the security shall be released upon the settlement of all claims and obligations for which the security was given. d. No security given for the guarantee or warranty of work shall be released until the expiration of the warranty period and until any claims filed during the warranty period have been settled. As provided in paragraph 10, the warranty period shall not commence until final acceptance of all work and improvements by the City Council. e. The CITY may retain from any security released,' and amount sufficient to cover costs and reasonable expenses and fees, including reasonable attorney's fees. 7. Iniurv to Public Improvements. Public Property or Public Utilities Facilities. SUBDIVIDER shall replace or have replaced, or repair or have repaired, as the case may be, all public improvements, public utilities facilities and surveying or subdivisiOn monuments which are destroyed or damaged or destroyed by reason of any work done under this Agreement. SUBDIVIDER shall bear the entire cost of replacement or repairs of any and all public property on public utility property damaged or destroyed by reason of any work done. Under this agreement whether such property is owned by the United States or any agency thereof, or the State of California, or any agency or political subdivision thereof, or by the CITY or any public or private utility corporation or by any combination or such owners. Any repair or replacement shall be to the satisfaction, and subject to the approval, of the City Engineer. 10 RIKITCHEL, JanetlBondsl05-oo44lParkland Landscape Agreement.doc 8. Permits. SUBDIVIDER shall, at SUBDIVIDER'S expense, obtain all necessary permits and licenses for the construction and installation of the improvements, give all necessary notices and pay all fees and taxes required by law. 9. . Default of SUBDIVIDER a. default of SUBDIVIDER shall include, but not be limited to, SUBDIVIDER'S failure to timely commence construction pursuant to this Agreement; SUBDIVIDER'S failure to timely commence construction of the Parkland/Landscape Improvements; SUBDIVIDER'S failure to timely cure the defect in the Parkland/Landscape Improvements; SUBDIVIDER'S failure to perform substantial construction work for a period of 20 calendar days after commencement of the work; SUBDIVIDER'S insolvency, appointment of a receiver, or the filing of any petition in bankruptcy either voluntary or involuntary which SUBDIVIDER fails to discharge within thirty (30) days; the commencement of a foreclosure action against the SUBDIVISION or a portion thereof, or any conveyance in lieu or in avoidance of foreclosure; or SUBDIVIDER'S failure to perform any other obligation under this Agreement. b. The CITY reserves to itself all remedies available to it at law or in equity for breach of SUBDIVIDER'S obligations under this Agreement. The CITY shall have the right, subject to his section, to draw upon or utilize the appropriate security to mitigate CITY damages in event of default by SUBDIVIDER. The right of CITY to draw upon or utilize the security is additional to and not in lieu of any other remedy available to CITY. It is specifically recognized that the estimated costs and security amounts may not reflect the actual cost of construction or installation of Parkland/Landscape Improvements and, therefore, CITY damages for SUBDIVIDER'S default shall be measured by the cost of completing the required improvements. The sums provided by the improvement security may be 11 R:IKITCHEL, JanetlBondsl05-oo44lParkland Landscape Agreement.doc used by CITY for the completion of the Parkland/Landscape Improvements in accordance with the Parkland/Landscape Improvement Plans and specifications contained herein. In the event of SUBDIVIDER'S default under this Agreement, SUBDIVIDER authorizes CITY to perform such obligation twenty days after mailing written notice of default to SUBDIVIDER and to SUBDIVIDER'S Surety, and agrees to pay the entire cost of such performance by CITY. CITY may take over the work and prosecute the same to completion, by contract or by any other method CITY may deem advisable, for the account and at the expense of SUBDIVIDER, and SUBDIVIDER'S Surety shall be liable to CITY for an excess cost or damages occasioned CITY thereby; and, in such event, CITY without liability for so doing, may take possession of, and utilize in completing the work, such materials, appliances, plan and other property belonging to SUBDIVIDER as may be on the site of the work and necessary for performance of the work. c. Failure of SUBDIVIDER to comply with the terms of this Agreement shall constitute consent to the filing by CITY of a notice of violation against all the lots in the SUBDIVISION, or to rescind the approval or otherwise revert the SUBDIVISION to acreage. The remedy provided by this Subsection C is in addition to and not in lieu of other remedies available to CITY. SUBDIVIDER agrees that the choice of remedy or remedies for SUBDIVIDER'S breach shall be in the discretion of CITY. 12 RIKITCHEL, Janet\Bondsl05-oo44lParkiand Landscape Agreemenl.doc d. In the event that SUBDIVIDER fails to perform any obligation hereunder, SUBDIVIDER agrees to pay all costs and expenses incurred by CITY in securing performance of such obligations, including costs of suit and reasonable attorney's fees. e. The failure of CITY to take an enforcement action with respect to a default, or to declare a breach, shall not be construed as a waiver of that default or breach or any subsequent default or breach of SUBDIVIDER. 10. Warranty. SUBDIVIDER shall guarantee or warranty the work done pursuant this Agreement for a period of one year after expiration of the maintenance period and final acceptance by the City Council of the work and improvements against any defective work or labor done or defective materials furnished. Where Parkland/Landscape Improvements are to be constructed in phases or sections, the one year warranty period shall commence after CITY acceptance of the last completed improvement. If within the warranty period any work or improvement or part of any work or improvement done, furnished, installed, constructed or caused to be done, furnished, installed or constructed by SUBDIVIDER fails to fulfill any of the requirements of this Agreement or the Parkland/Landscape Improvement Plans and specifications referred to herein, SUBDIVIDER shall without delay and without any cost to CITY, repair or replace or reconstruct any defective or otherwise unsatisfactory part or parts of the work or structure. Should SUBDIVIDER fail to act promptly or in accordance with this requirement, SUBDIVIDER hereby authorizes CITY, at CITY option, to perform the work twenty days after mailing written notice of default to SUBDIVIDER and to SUBDIVIDER'S Surety and agrees to pay the cost of such work by CITY. Should CITY determine that an urgency requires repairs or replacements to be made before SUBDIVIDER can be notified, CITY may, in its sole discretion, make the necessary 13 R:\KITCHEL, JanetlBondsl05-oo44lParkiand Landscape Agreemenl.doc repairs or replacements or perform the necessary work and SUBDIVIDER shall pay to CITY the cost of such repairs. 11. Subdivider Not Aqent of City. Neither SUBDIVIDER nor any of SUBDIVIDER'S agents or contractors are or shall be considered to be agents of CITY in connection with the performance of SUBDIVIDER'S obligations under this Agreement. 12. Iniurv to Work. Until such time as the Parkland/Landscape Improvements are accepted by CITY, SUBDIVIDER shall be responsible for and bear the risk of loss to any of the improvements constructed or installed. CITY shall not, nor shall any officer or employee thereof, be liable or responsible for any accident, loss or damage, regardless of cause, happening or occurring to the work or improvements specified in this Agreement prior to the completion and acceptance of the work or improvements. All such risks shall be the responsibility of and are hereby assumed by SUBDIVIDER. 13. Other Aqreements. Nothing contained in this Agreement shall preclude CITY from expending monies pursuant to agreements concurrently or previously executed between the parties, or from entering into agreement with other subdividers for the appointment of costs of water and sewer mains, or other improvements, pursuant to the provisions of the CITY ordinances providing therefore, nor shall anything in this Agreement commit CITY to any such apportionment. 14. SUBDIVIDER'S Obliqation to Warn Public Durinq Construction. Until final acceptance of the Parkland Improvements, SUBDIVIDER shall give good and adequate warning to the public of each and every dangerous condition existent in said improvements, and will take all reasonable actions to protect the public from such dangerous condition. 15. Vestinq of Ownership. Upon acceptance of work on behalf of CITY and recordation of the Notice of Completion, ownership of the improvements constructed pursuant to this Agreement shall vest in CITY. 14 R:IKITCHEL, JanetlBondsl05-oo44lParkiand Landscape Agreement.doc 16. Final Acceptance of Work. Acceptance of the work on behalf of CITY shall be made by the City Council upon recommendation of the Director of Community Services after final completion and inspection of all Parkland/Landscape Improvements. The Board of Directors shall act upon the Director of Community Services recommendations within thirty (30) days from the date the Director of Community Services certifies that the work has finally completed, as provided in Paragraph 5. Such acceptance shall not constitute a waiver of defects by CITY. 17. Indemnity/Hold Harmless. CITY or any officer or employee thereof shall not be liable for any injury to persons or property occasioned by reason of the acts or omissions of SUBDIVIDER, its agents or employees in the performance of this Agreement. SUBDIVIER further agrees to protect and hold harmless CITY, its officials and employees from any and all claims, demands, causes of action, liability or loss of any sort, because of, or arising out of, acts or omissions or SUBDIVIDER, its agents or employees in the performance of this Agreement, including all claims, demands, causes of action, liability, or loss because of, or arising out of, in whole or in part, the design or construction of the Parkland/Landscape Improvements. This indemnification and Agreement to hold harmless shall extend to injuries to persons and damages or taking of property resulting from the design or construction of the Parkland/Landscape . Improvements as provided herein, and in addition, to adjacent property owners as a consequence of the diversion of waters from the design or construction of public drainage systems, streets and other pUblic improvements. Acceptance of any of the Parkland/Landscape Improvements shall not constitute any assumption by the CITY of any responsibility for any damage or taking covered by this paragraph. CITY shall not be responsible for the design or construction of the Parkland/Landscape Improvements pursuant to the approved Parkland/Landscape Improvement Plans, regardless of any negligent action or inaction taken by the CITY in approving the plans, unless the 15 R:\KITCHEL, JanetlBondsl05-oo44lParkland Landscape Agreement.doc particular improvement design was specifically required by CITY over written objection by SUBDIVIDER submitted to the Director of Community Services before approval of the particular improvement design, which objection indicated that the particular improvement design was dangerous or defective and suggested an alternative safe and feasible design. After acceptance of the Parkland/Landscape Improvements, the SUBDIVIDER shall remain obligated to eliminate any defect in design or dangerous condition caused by the design or construction defect, however, SUBDIVIDER shall not be responsible for routine maintenance. Provisions of this paragraph for Parkland/Landscape Improvements shall remain in full force and effect for ten years following the acceptance by the CITY. It is the intent of this section that SUBDIVIDER shall be responsible for all liability for design and construction of the Parkland/Landscape Improvements installed or work done pursuant to this Agreement and the CITY shall not be liable for any negligence, nonfeasance, misfeasance or malfeasance in approving, reviewing, checking, or correcting any plans or specifications or in approving, reviewing or inspecting any work or construction. The improvement security shall not be required to cover the provision of this paragraph. 18. Sale or Disposition of SUBDIVISION. Sale or other disposition of this property will not relieve SUBDIVIDER from the obligations set forth herein. If SUBDIVIDER sells the property or any portion of the property within the SUBDIVISION to any other person, the SUBDIVIDER may request a novation of this Agreement and a substitution of security. Upon approval of the novation and substitution of securities, the SUBDIVIDER may request a release or reduction of the securities required by this Agreement. Nothing in the novation shall relieve the SUBDIVIDER of the obligations under Paragraph 17 for the work or improvement done by SUBDIVIDER. 16 R:IKITCHEL, JanetIBondsI05-oo44IParkiand Landscape Agreement.doc 19. Time of the Essence. Time is of the essence of this Agreement. 20. Time for Completion of Work Extensions. SUBDIVIDER shall complete construction of the improvements required by this Agreement no later than 7 /1 / )}~()O 7 , I In the event good cause exists as determined by the City Engineer, and if otherwise permitted under the tentative map condition, the time for completion of the improvements hereunder may be extended. The extension shall be made by writing executed by the Director of Community Services. Any such extension may be granted without notice to SUBDIVIDER'S Surety and shall not affect the validity of this Agreement or release the Surety or Sureties on any security given for this Agreement. The Director of Community , Services shall be the sole and final judge as to whether or not good cause has been shown to entitle SUBDIVIDER to an extension. Delay, other than delay in the commencement of work, resulting from an act of CITY, or by an act of God, which SUBDIVIDER could not have reasonably foreseen, or by storm or inclement weather which prevents the conducting of work, or by strikes, boycotts, similar actions by employees or labor organizations, which prevent the conducting or work, and which were not caused by or contributed to by SUBDIVIDER, shall constitute good cause for an extension of time for completion. As a condition of such extension, the Director of Community Services may require SUBDIVIDER to furnish new security guaranteeing performance of this Agreement as extended in an increased amount as necessary to compensate for an increase in construction costs as determined by the Director of Community Services. 21. No Vestino of Riohts. Performance by SUBDIVIDER of this Agreement shall not be construed to vest SUBDIVIDER'S rights with respect to any change in any change in any zoning or building law or o~dinance. 17 R:IKITCHEL, JanetlBondsl05-oo44lParkiand Landscape Agreement.doc 22. Notices. All notices required or provided for under this Agreement shall be in writing and delivered in person or sent by mail, postage prepaid and addressed as provided in this Section. Notice shall be effective on the date it is delivered in person, or, if mailed, on the date of deposit in the United States Mail. Notices shall be addressed as follows unless a written change of address is filed with the City: Notice to CITY: City Clerk City of Temecula 43200 Business Park Drive P.O. Box 9033 Temecula, CA 92589-9033 Notice to SUBDIVIDER: Name/Address: ~p,~ ?~f\Q..ColZ? 1.E:;n E... KlN~ 1ST) ::'SI<., 2f::f::) Cot2eJN f\ C A CV2.. 1) JC\ Contact Name: I'-i lt~Tl(-\EL U. (.J '.hlt Contact Phone No. OlS\- o/2--'gboO 23. Severability. The provisions of this Agreement are severable. If any portion of this Agreement is held invalid by a court of competent jurisdiction, the remainder of the Agreement shall remain in full force and effect unless amended or modified by the mutual consent of the parties. 24. Captions. The captions of this Agreement are for convenience and reference only and shall not define, explain, modify, limit, exemplify, or aid in the interpretation, construction or meaning of any provisions of this Agreement. 25. Litiqation or Arbitration. In the event that suit or arbitration is brought to enforce the terms of this contract, the prevailing party shall be entitled to litigation costs and reasonable attorney's fees. 18 . RIKITCHEL, JanetlBondsl05-oo44lParkland Landscape Agreement.doc 26. Incorporation of Recitals. The recitals to this agreement are hereby incorporated into the terms of this agreement. 27. Leqal Responsibilities. The Subdivider shall keep itself informed of all local, State and Federal laws and regulations which in any manner affect those employed by it or in any way affect the performance of its obligations pursuant to this Agreement. The Subdivider 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 Subdivider to comply with this section. 28. Entire Aqreement. This Agreement constitutes the entire Agreement of the parties with respect to the subject matter. All modifications, amendments, or waivers of the terms of this Agreement must be in writing and signed by the appropriate representative of the parties. In the case of the CITY, the appropriate party shall be the City Manager. 19 R:IKITCHEL, Janet\BondsI05-oo44\Parkland Landscape Agreement.doc IN WITNESS WHEREOF, this Agreement is executed by CITY, by and through its Mayor. SUBDIVIDER By: ~ Name: Aun.t)F;\ ~ M()NT AUTHORIZED REP. Title: B~r Name:"M I Title: TEMECULA COMMUNITY SERVICES DISTRICT BOARD y. Name: Jeff Comerchero Title: President (Proper Notarizatio SUBDIVIDER'S signature is required and shall be attached) ATTEST: By: Susan W. Jones, MMC, City Clerk RECOMMENDED FOR APPROVAL: By: William G. Hughes, Director of Public Works/City Engineer By: Herman D. Parker Director of Community Services APPROVED AS TO FORM: By: Peter Thorson City Attorney RIKITCHEL, JanetlBondsl05-oo44lParkland Landscape Agreement.doc 20 CALIFORNIA ALL-PURPOSE ACKNOWLEDGEMENT County of Riverside } SS. State of California On February 17, 2006 Date before me, Lilia Reyes-Torre, Notary Public Name and Title of Officer personally appeared August Belmont and Michaei J. White ______________________m___________________________m__ , [2] personaily known to me o proved to me on the basis of satisfactory evidence @ LILIA REYES.TORRE __ Commlaslon # 1570893 i a: Notary Public. Cailfomla , Riverside County My Comm. ExpIresAp/ 19.2009 ~ to be the person(s) whose name(s) ;,{are subscribed to the within instrument and acknowledged to me that~/they executed the same in ~/their authorized capacity(ies), and that by ~their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and officiai seal. ------mmm...--.--m..m------.-..________________m____m___OPTIONALm...m.......______________m.....m_________...______________m Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. Pescription of Attached Document Title or Type of Document: Document Date: Number of Pages: Signer(s) Other Than Named Above: Capacity(ies) Claimed by Signer Signer's Name: o Individual [2] Corporate Officer- Tille(s): Authorized Reps. o Partner -- ? Limited ? General o Attorney-in-Fact o Trustee o Guardian or Conservalor o Other: Signer Is Representing; EXHIBIT A (Attach the basis for the estimate of the cost of'improvements.) 21 R:IKITCHEL, JanetlBondsl05-oo44lParkland Landscape Agreement.doc WOLF CREEK PARKWAY PRODUCTION (SOUTH SIDE) OPINION OF PROBABLE CONSTRUCTION COSTS STANDARD PACIFIC DATE: 1/30/06 CREATED BY: TMW IJJM ITEM QUANTITY UNIT UNIT PRICE ITEM COST LANDSCAPE CONSTRUCTION -EARTHWORK/GRADING Soil Prep / Fine Grading 92636 S.P. $0.35 $32,422.60 Landform/Berming 304 c.Y. $25.00 $7,600.00 Section Subtotal $40,022.60 -CONCRETE AND PAVING Concrete Paving - med. broom finish 41,724 S.P. $5.00 $208,620.00 Enhanced Paving 963 S.P. $6.50 $6,259.50 Concrete Mowstrip 157 L.P. $10.50 $1,648.50 Section Subtotal $216,528.00 -SITE AMENITIES Picnic Tables 5 EA. $1,200.00 $6,000.00 Barbeque 3 L.S. $400.00 $1,200.00 Bench 1 L.S. $850.00 $850.00 Trash 4 L.S. $350.00 $1,400.00 Section Subtotal $9,450.00 - BUILDINGS AND STRUCTIJRES Gazebo 1 EA. $15,000.00 $15,000.00 Section Subtotal $15,000.00 LANDSCAPE CONSTRUCTION SUBTOTAL $281,000.60 LANDSCAPE PLANTING -TREES 24" Box Tree 137 EA. $220.00 $30,140.00 36" Box Tree 32 EA. $650.00 $20,800.00 Section Subtotal $50,940.00 -SHRUBS (65/35@30"OC) 1 Gallon 3359 EA. $7.00 $23,513.00 5 Gallon 7713 EA. $16.00 $123,408.00 Section Subtotal $146,921.00 .GROUNDCOVER Sod 23,434 S.P. $0.65 $15,232.10 Myoporum 34,601 S.P. $0.30 $10,380.30 Section Subtotal $25,612.40 . MISCELLANEOUS 3" Shredded Mulch 69,202 S.P. $0.25 $17,300.50 Section Subtotal $17,300.50 LANDSCAPE PLANTING SUBTOTAL $240,773.90 LANDSCAPE IRRIGATION Automatic Irrigation System - Common Areas 103,803 S.P. $1.25 $129,753.75 Section Subtotal $129,753.75 LANDSCAPE IRRIGATION SUBTOTAL $129,753.75 TOTAL $651,528.25 20% CONTINGENCY $130,305.65 GRAND TOTAL $781,833.90 Cost per Square Foot 146,490 S.P. $5.34 , BOND NO. 08832548-A PREMIUM: Included in charge for Performance Bond CITY OF TEMECULA PARKLAND/LANDSCAPE WARRANTY BOND WHEREAS, the City of Temecula, State of California (hereinafter designated as "City"), and Pacific Standard (hereinafter designated as "Principal") have entered into an Agreement whereby Principal agrees to install and complete certain designated Parkland Improvements, which said Agreement, dated ;:-E3 17~ 200 " and identified as Wolf Creek Slopes - Parkway South, Phase 2 - CSD05-0044, is hereby referred to and made a part hereof; and WHEREAS, Principal is required to warranty the work done under the terms of the Agreement for a period of one (1) year following acceptance thereof by City against any defective work or labor done or defective materials furnished, in the amount of ten percent (10%) ofthe estimated cost of the improvements; of Maryland NOW, THEREFORE, we the Principal and Fidelitv and Deposit Company/aS surety, are held and firmly bound unto the City of Temecula, California, in the penal sum of $86,002.0<f, lawful rnoney of the United States, for the payment of such sum well and truly to be made, we bind ourselves, our heirs, successors, executors and administrators, jointly and severaily. The condition of this obligation is such that the obligation shall become null and void if the aboye-bounded Principal, his or its heirs, executors, administrators, successors, or assigns shall in all things stand to, abide by, well and truly keep, and perform the covenants, conditions, and provisions in the Agreement and any alteration thereof made as therein provided, on his or their part, to be kept and performed at the time and in the manner therein specified, and in all *Eighty Six Thousand Two and 00/100 R:\KITCHEL, Janet\Bondslo5c-0044\parkland iandscape Warranty Bond 1.doc Page 1 cf3 R:\KfrCHEl, Janet\Bonds\D5-D044\parkland landscape Warranty Bond 1.doc Page 2 of3 IN WITNESS WHEREOF, this instrument has been duly executed by the Principal and Surety above named, on February 8 ,20~. (Seal) (Seal) PRINC~P Standard P a. Cif.iC Corp., any of Maryland. ~rporation By. . ... .. AUGUST BELMONT AUTHORIZEQ!lilIafl1i$ENTATlVE Attorney-in-Fact (Title) By: AUTHORIZED REP. (Title) APPROVED AS TO FORM: Peter Thorson, City Attorney R:\KITCHEL, Janet\BondsI05-0044\parkland landscape Warranty Bond 1.doc Page 3 of3 CALIFORNIA ALL-PURPOSE ACKNOWLEDGEMENT County of Riverside } SS. State of California On February 17, 2006 Date before me, Lilia Reyes-Torre, Notary Public Name and Tille of Officer personally appeared August Belmont and Michael J. White ---------------------------------------------------------------- , [2] personally known to me o proved to me on the basis of satisfactory evidence 1------------1 LILIA REYES-TORRE @'commISSIon#1570893 ~ . -a: Notary Public - California ~ t . . Riverside County f ... _ _ ~:~m~x~es_~1~2~9 to be the person(s) whose name(s) ....are subscribed to the within instrument and acknowiedged to me that beIeIleIthey executed the same in ~their authorized capacity(ies), and that by !lioiIler/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and officiai seal. -------------------------------------..---...-------------------------OPTIONAL-----------------------------____________......___...___._____..._____ Though the information below is not required by raw, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. Description of Attached Pocument Title or Type of Document: Document Date: Number of Pages: Signer(s) Other Than Named Above: Capacity(ies) Claimed by Signer Signer's Name: o Individual [2] Corporate Officer- Title(s): Authorized Reps. o Partner --? Limited ? General o Attorney-in-Fact o Trustee o Guardian or Conservalor o Other: Signer Is Representing: Sl'ATE OF California } SS. COUNTY OF Oranqe --- On February 3th, 2006 . before me, Lisa A. Cushing, Notary Public PERSONALLY APPEARED Christine Maestas - . personally known to me (or proved to me OJ! the basis ofsatisfa(:tory evidence) to be the person(s) whose lumte{s} is/are subscribed to the within instrument and ackl1owledget;1 to me that he/she/they ("eXecuted the Same in hislher/their authorized capaci.ry(ies), and that by hislherltheir - - - - - - - - - - - - I sigr:ature(s) on the instrunumt the PUSOll(s), or the entity upon behalf le '"',,- of which the pef.i;on( s) acted. executed the instrument. CommisSIOn # 1636832 j ~. Notary Public - COIIlomIa WITNeSS my hand and official seal. i OIange Coun1'( ~ ~ _ _.~~:.~_~lC:202 ,_"e~OG~ This are.a for Official Notarial Seal . OPTIONAL Though the data below Is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this lonm. CAPACITY CLAIMED BY SIGNER DESCRIPTION OF AiTACHED DOCUMENT o INDIVIDUAL Warranty o CORPORATEOFFlCER Bond No. 03332543 TITLE OF lYPE OF DOCUMENT l1nE(S) o PARTNER(S) o L1MITEP o GENERAL Three I:J!I ATTORNEY-iN-FACT NUMBER OF PAGES -- o TRUSTEE(S) o GUARDIAN/CONSERYATOR o OTHER:_..........____. -~..... February 3th, 2006 --.----- DATE OF DOCUMENT ---- SIGNER IS REPRESENTING: NAME OF PERSON(S} OR ENTTTY{IES) Fideli!)[i!!!.<IJ2!"E2sit ~l)mP'!.'!YEf Maryland ------- Standard Pacific Corp., a Delaware Corporation SIGNERIS\ OTHER THAN NAMED ABOYE ID-1232 (REV. 5101) ALL-PURPOSE ACKNOWLEDGEMENT Power of Attorney FIDELITY AND DEPOSIT COMPANY OF MARYLAND KNOW ALL MEN BY THESE PRESENTS: That the FIDELITY AND DEPOSIT COMPANY OF MARYLAND, a corporation of the State of Maryland, by PAUL c.. ROGERS, Vice President, and T. E. SMITH, Assistant Secretary, in pursuance of authority granted by Article VI, Section 2, of the By-Laws of said Company, w . set forth on the reverse side hereof and are hereby certified to be in full force and effect on the date hereo\,\ d s ffiY . nate, constitute and appoint Paul A. BLAND, Dana L. DOWERS, Christine MAESTAS a ~A . of Irvine, California, EACH its true and lawful agent and Attorney-in-Fact, to mak _ ji~\.'lIrlltl~~l'l'iNPj1:' behalf as surety, and as its act and deed: any and aU bonds and nnd~~ cy~~~.sr-tndertakings in pursuance of these presents, shall be as binding upon s~~~~~11\IK! d\ll!W,~'@1tl'ki1\:'e'nts and purposes, as if they had been duly executed and acknowl~~~~~WY ele _ 's>~Company at its office in Baltimore, Md., in their own proper persons~~~r'oJ'att6~ ~\t \'. e on behalf of Paul A. BLAND, Dana L. DOWERS, Christine MAEST AS, Katherqij'1:::::j'''U!rA~\9i:fs:'0'AA, dated July 17, .2003. The said Assistant ~~es :Me're~ certify that the extract set forth on the reverse side hereof is a true copy of Article VI, Section 2, of the By-L\~~d Company, and is now in force. IN WITNESS WHEREOF, the said Vice-President and Assistant Secretary have hereunto subscribed their names and affixed the Corporate Seal of the said FIDELITY AND DEPOSIT COMPANY OF MARYLAND, this 22nd day of January, A.D. 2004. . ATTEST: FIDELITY AND DEPOSIT COMPANY OF MARYLAND v:):v~ By: Assistant Secretary Paul C. Rogers ~ T. E. Smith Vice President State of Maryland }SS' City of Baltimore . On this 22nd day of January, A.D. 2004, before the subscriber, a Notary Public of the State of Maryland, duly commissioned and qualified, came PAUL C. ROGERS, Vice President, and T. E. SMITH, Assistant Secretary of the FIDELITY AND DEPOSIT COMPANY OF MARYLAND, to me personally known to be the individuals and officers described in and who executed the preceding instrument, and they each acknowledged the execution of the same, and being by me duly sworn, severally and each for himself deposeth and saith, that they are the said officers of the Company aforesaid, and that the seal affixed to the preceding instrument is the Corporate Seal of said Company, and that the said Corporate Seal and their signatures as such officers were duly affixed and subscribed to the said instrument by the authority and direction of the said Corporation. IN TESTIMONY WHEREOF, I have hereunto set my hand and affixed my Official Seal the day and year first above written. fS/pcJ Dell/lis R. Hayden Notary PublicyMy Commission Expires: February 1,2005 POA-F 012-0038 .. BOND NO. 08832548 PREMIUM: $6,880.00/2Years CITY OF TEMECULA PARKLAND/LANDSCAPE FAITHFUL PERFORMANCE BOND WHEREAS, the City of T emecula, State of California, and Standard Pacific (hereinafter designated as "Principal") have entered into an Agreement whereby Principal agrees to install and complete certain parkland improvements, which said Agreement, dated FCB. f 7 fL. 200'" and identified as Wolf Creek Slopes - Parkway South, Phase 2 - CSD05-0044, is hereby referred to and rnade a part hereof; and WHEREAS, Principal is required under the terms of the Agreernent to furnish a bond for the Faithful Performance of the Agreement; Mary1and NOW, THEREFORE, we the Principal and Fidelitv and Deposit Company or 1 as surety,are held and firmly bound unto the City of Temecula, California, in the penal surn of $860,017.00'Iawful money of the United States, for the payment of such sum well and truly to be made, we bind ourselves, our heirs, successors, executors and administrators, jointly and severally. The condition of this obligation is such that the obligation shall becorne null and void if the aboye-bounded Principal, his or Its heirs, executors, adrninistrators, successors, or assigns, shall in all things stand to, abide by, well and truly keep, and perform the coyenants, conditions, and provisions in the Agreement and any alteration thereof rnade as therein provided, on his or their part, to be kept and performed at the time and in the manner therein specified, and in all respects according to his or their true intent and meaning, and shall indemnify and save harmless the City of Temecula, its officers, agents, and employees, as therein stipulated; otherwise, this obligation shall be and remain in full force and effect. As a part of the obligation secured hereby and in addition to the face amount specified therefore, there shall be included costs and reasonable expenses and fees, including reasonable attorney's fees, incurred by City in successfully enforcing such obligation, all to be taxed as costs and included in any judgment rendered. *Eight Hundred Sixty Thousand Seventeen and 00/100 R:\K1TCHEL, Janet\Bdnds\05"0044\parkland landscape faithfulperformance.doc Page 1 of2 The surety hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of the Agreement or to the work to be performed there under or the specifications accompanying the same shall in anyway affect its obligations on this bond, and it does hereby waive notice of any such change, extension of time, alteration or addition to the terms of the Agreement or the work or to the specifications. IN WITNESS WHEREOF, this instrurnent has been duly executed by the Principal and Surety above named, on February 8 , 2006 (Seal) (Seal) s~ ~--- FID I D 0 IT 1.NYOF t B~ " MAESTAS (Name) PRINC~P L STMlDARD PACIFIC CORP .. 17 A WARE CORPORATION By: ',? . . ... AUGUST BELMONT AUTHORJzE(bla~ESENTATlVE ATTORNRY-TN-FACT (Titie) By: (Title) AUTHORIlf'A1lEP"," (Title) APPROVED AS TO FORM: Peter Thorson, City Attorney R:IKITCHEL. JanetlBonds\05-oo44\parkland landscape failhful performance.doc Page 2 of2 CALIFORNIA ALL-PURPOSE ACKNOWLEDGEMENT County of Riverside } SS. State of Caiifornia On February 17, 2006 Date before me, Lilia Reyes-Torre, Notary Public Name and Title of Officer personally appeared August Belmont and Michaei J. White ----------------------------------------------------------------------- [2] personally known to me D proved to me on the basis of satisfactory evidence I--~~~~-----~J LILIA REYES-TORRE "Commission # 1570893 ~ . -,,; Notarv Public - California ~ t . . Riverside County f _ _ _ ~ :o:m:..Ex~es_ Ap~ 19~ 2~09 to be the person(s) whose name(s) ;stare subscribed to the within instrument and acknowledged to me that fleIshe/they executed the same in -Ris.'AeI'Itheir authorized capacity(ies). and that by ~/their signature(s) on the instrument the person(s), or the entity upon behaif of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. m.m------------------m......--------------m-.--.-_____........OPTIONALm___________________m_m.......m______________m...mm.____ Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. Description of Attached Document Tille or Type of Document: Document Date: Number of Pages: Signer(s) Other Than Named Above: Capacity(ies) Claimed by Signer Signer's Name: D Individual [2] Corporate Officer- Tille(s): Authorized Reps. D Partner - ? Limited ? General D Attorney-in-Fact D Trustee D Guardian or Conservator DOther: RIGHT THUMBPRINT OF SIGNER Signer Is Representing: S'l'ATEOF California } SS. COUNTY OF Orange On Februarv 8th, 2006 -- . before me, Lisa A. Cushing, Notary Publ!c l'ERSONALLY APPEARED Christine Maestas ---- -- , per.r;onally known to me (or proved to me OJ-1 the. basis ofsatl.\f(u:tory evidence) to be the person(s) whose ml/ne(s) i.flllre subscribed to the within instrument and acknowledged to me that helsheJfhey .f',.X(!cuted the same in hitlherltheir autlwrized t:np"cily(ies), and tlwt by his/herltheil' l@- :=*:::.~, - I signature(s) on the instrument the pp.rson(s). or the entity upon behalf oj'which the person(s) acted, executed the instrument. ~. NoIaIy Public - CaHfomla ~ WITNESS my hand arId official "eal. t Orange County t _ _ _ ~~:...~....~1~202O Sigllature rf1 ~ 0 ~~ This are.a for Official Nosarial Seal OPTIONAL Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form. CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATIACHED DOCUMENT o INDIVIDUAL Faithful Performance o CORPORATEOFACER Bond No. 08832548 TITLE OF TYPE OF DOCUMENT llTlE(S) o PARTNER(S) o LIMITED o GENERAL Two [1!J ATTORNEY-iN-FACT NUMBER OF PAGES - o TAUSTEE(S) o GUARDIANlCONSERYATOR o OTHER: .....-.,----. February 8th, 2006 ------.-- -.----_.. DATE OF DOCUMENT ----- - SIGNER IS REPRESENTING: NAME OF PERSON(S) OR ENTTTYllE..">) Fideli~nd D~J:>osit Compa'!YEf Maryland Standard Pacific Corp., a Delaware Corporation SIGNERIS) OTHER THAN NAMED ABOYE....- iD-1232 (REV. 5/01) ALL-PURPOSE ACKNOWLEDGEMENT BOND NO. 08832548 PREKIIlM: Included in charge for Performance Bond CITY OF TEMECULA PARKLAND/LANDSCAPE LABOR AND MATERIALS BOND WHEREAS, the City of Temecula, State of California, and Pacific Standard, (hereinafter designated as "Principal") have entered into an Agreement whereby Principal agrees to install and complete certain Parkland Improvements, which said Agreement, dated t=/!/3, 17?\.... , 200&, and identified as Wolf Creek Slopes - Parkway South, Phase 2 - CSD04-0044, is hereby referred to and made a part hereof; and WHEREAS, under the term of said Agreement, Principai is required before entering upon the performance of the work, to file a good and sufficient payment bond with the City of Temecula, to secure the claims to which reference is rnade in Title 15 (cornmencing with Section 3082) of Part 4 of Division 3 of the Civil Code of the State of California; and NOW, THEREFORE, we the principal and Fidelitv and Deuosit Comuanv of Maryland as Surety, are held and firmly bound unto the City of Temecula, California, and all contractors, subcontractors, laborers, material men, other persons employed in the performance of the aforesaid Agreement and referred to in Title 15 of the Civil Code, in the penal sum of $430,009.00~ lawful money of the United States, for materials. furnished or labor thereon of any kind, or for amounts due under the Unemployment Insurance Act with respect to such work or labor, that Surety will pay the same in an amount not exceeding the amount set forth. *Four Hundred Thirty Thousand Nine and 00/100 R~\KITCHEL, Janet\8onds\05.0044\parkland landscape labor and materials bond.doc Pase 1 of 3 As a part of the obligation secured hereby and in addition to the face amount specified therefore, there shall be included costs and reasonable expenses and fees, including reasonable attorney's fees, incurred by City in successfully enforcing such obligation, all to be taxed as costs and included in any judgment rendered. It is hereby expressly stipulated and agreed that this bond shall insure to the benefit of any and all persons, companies and corporations entitled to file clairns under Title 15 (cornmencing with Section 3082) of Part 4 of Division 3 of the Civil Code, so as to give a right of action to them or their assigns in any suit brought upon this bond. If the condition of this bond is fully performed, then this obligation shall become null and void; otherwise, it shall be and remain in full force and effect. The surety hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of the Agreernent or to the work to be perforrned there under or the specifications accompanying the sarne shall in anyway affect its obligations on this bond, and it does hereby waiye notice of any such changes, extension of time, alteration or addition to the terms of the Agreement or to the work or to the specifications. R:\KtTCHEL, Janet\Bonds\D5-0044\parkland landscape labor and materials bond.doc Page 2 of 3 IN WJTNESS WHEREOF, this instrument has been duly executed by the Principal and Surety above named, on February 8 , 20 06 (Seal) (Seal) SURa ~ PRINCipAL ',.""."d '=lik _.. Fid' De 0 any of Mary:}:and& ~. ~.e. cor..:;poration By: i I .I~ By:' . v. .. . Christine Maestas AUGUST BELMONT (Name) AUTHORIZEl(ltmi~ENTATIVE Attorney-in-Fact (Title) (Title) By: . C). WlhTe me) AurnORIZED flEr. (Title) APPROVED AS TO FORM: PeterThorson, City Attorney R:\KrrCHEL, Janel\Bonds\OS.OO44\parkland landscape labar and materials bond.doc Page 3 of3 CALIFORNIA ALL.PURPOSE ACKNOWLEDGEMENT County of Riverside } SS. State of California On February 17, 2006 Date before me, Lilia Reyes-Torre, Notary Public Name and Title of Officer personally appeared August Belmont and Michael J. White ------------------------------------------------------------------- [2] personaliy known to me D proved to me on the basis of satisfactory evidence J------------J LILIA REYES.TORRE @ Comm""lon#1570893 ~ -a: IIIotary Publlc . Callfomla ~ J' Riverside Counly I __ ,.. _ ~:o:m~~res_~1~2~ . to be the person(s) whose name(s) -isIare subscribed to the within instrument and acknowledged to me that ~they executed the same in -RieIfteIo/their authorized capacity(ies), and that by ~their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. ---------....---------------------------------------------------------OPTIONAL-------.--------------------------------------______________________.. Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. Description of Attached Document Title or Type of Document: Document Date: Number of Pages: Signer(s) Other Than Named Above: Capacity(ies) Claimed by Signer Signer's Name: D Individuai [2] Corporate Officer- Title(s): Authorized Reps. D Partner - ? Limited ? General D Attorney-in-Fact D Trustee D Guardian or Conservalor DOther: RIGHT THUMBPRINT OF SIGNER Signer Is Representing: STATE OF California } SS. COUNTY OF Orange --- On February 8th, 2006 . bf'jore me, Lisa A. Cushing, Notary Publi!= PERSONALLY APPEARED Christine Maestas ---. , penlOnally known to me (or proved to me on the basis of sati.'ljeu:tory evidence) to be the person(s) whose rwme(s) is/ilfe subscribed to the within im1rument and c/cknowledged to me that helshelthey execEfted the Same in his/herltheir authorized capaci.ty(ies), and that by his/her/their - - - - - - ~ - - - - l sigllature( s) on the in.strument the person(s), or the entity upon behalf 18 ~'''"''" oj'which the person.(s) acted, executed the instrument. _ CommiSSIon # 1636832 I f NofalV PublIc . Call1omk1 WITNESS my h,md ,md official.,eal. j Orange Coun1y I _ _ _ ~~~~_~10.:.20~O Signature cf1o, 0 @L This (,lrea for Official Notarial Seal OPTIONAL Though the data below Is not required by law, it may prove vaiuable to persons relying on the document and could prevent fraudulent reattachment of this fonm. CAPACITY CLAIMED BY SIGNER DESCRIPTION OF AlTACHED DOCUMENT o INDIYIDUAL Labor and Material o CORPORATE OFFICER Bond No. 08832548 TITLE OF TYPE OF DOCUMENT l1TlE(S) o PARTNER(S) o LIMITED o GENERAL Three I]j ATTORNEY-iN-FACT NUMBER OF PAGES o TRUSTEE(S) o GUARDIAN/CONSERVATOR o OTHER: ~~---- .'........,-- February 8th, 2006 --~._------------_.__..- DATE OF DOCUMENT SIGNER IS REPRESENTING: NAMe OF PCASON(S) OR ENTITY{IES) FideliDu!!lcl_~<:>sit .s:<:.>mp"'!.'!Y. 01 Maryland Standard Pacific Corp., a Delaware Corporation SIGNER(S} OTHER THAN NAMED ABOYE ID-1232 (REV. 5/01) ALL-PURPOSE ACKNOWLEDGEMENT Power of Attorney FIDELITY AND DEPOSIT COMPANY OF MARYLAND KNOW ALL MEN BY THESE PRESENTS: That the FIDELITY AND DEPOSIT COMPANY OF MARYLAND, a cOlporation of the State of Maryland, by PAUL C. ROGERS, Vice President, and T. E. SMITH, Assistant Secretary, in pursnance of authority granted by Article VI, Section 2, of the By-Laws of said Company, w~~ set forth on the reverse side hereof and are hereby certified to be in full force and effect on the date ~hereof df\~nate, constitute and appoint Pan! A. BLAND, Dana L. DOWERS, Christine MAESTA~aJJ.'\ .. \ ~~~l"lIZof Irvine, California, EACH its true and lawful agent and Attorney-in-Fact; to ma!< ~j\jl'llri ~~\1~ behalf as surety, and as its act and deed: any and all bonds and nndert . l!'j 'tiiib~cu~' ~~rundertakings in pursuance of these presents, shall be as binding upon ~\~I --::-\ ~a M ~ dl)ljJ,lblp' I~ents and purposes, as if they had been duly executed and acknowl~~~q~y ele M-i ompany at its office in Baltimore, Md., in their own proper persons\~~~r MMt6';!)9' ~\\ \. e on behalf of Paul A. BLAND, Dana L. DOWERS, Christine MAESTAS, Katheq>:?I::'t'tisA~~ik0'iA., dated July 17, 2003. The said Assistant ~;s\he\i6Y certify that the extract set forth on the reverse side hereof is a true copy of Article VI, Section 2, of the By-U\j;'s'tiVsaid Company, and is now in force. . IN WITNESS WHEREOF, the said Vice-President and Assistant Secretary have hereunto subscribed their names and affixed the Corporate Seal of the said FIDELITY AND DEPOSIT COMPANY OF MARYLAND, this 22nd day of January, A.D. 2004. ATTEST: FIDELITY AND DEPOSIT COMPANY OF MARYLAND ~v~ By: Assistant Secretary Paul C. Rogers ~ T. E. Smith Vice President State of Maryland }ss' City of Baltimore . On this 22nd day of January, A.D. 2004, before the subscriber, a Notary Public of the State of Maryland, duly commissioned and qualified, came PAUL C. ROGERS, Vice President, and T. E. SMITH, Assistant Secretary of the FIDELITY AND DEPOSIT COMPANY OF MARYLAND, to me personally known to be the individuals and officers described in and who executed the preceding instrument, and they each acknowledged the execution of the same, and being by me duly sworn, severally and each for himself deposeth and saith, that they are the said officers of the Company.aforesaid, and that the seal affixed to the preceding instrument is the Corporate Seal of said Company, and that the said Corporate Seal and their signatures as such officers were duly affixed and subscribed to the said instrument by the authority and direction of the said Corporation. IN TESTIMONY WHEREOF, I have hereunto set my hand and affixed my Official Seal the day and year first above written. V/-j-J Dennis R. Hayden Notary Public My Commission Expires: February I, 2005 POA-F 012-0038 ITEM NO. 35 Approvals City Attorney Director of Finance City Manager ~ IJIL !p'- TEMECULA COMMUNITY SERVICES DISTRICT AGENDA REPORT TO: General Manager/Board of Directors FROM: Herman D. Parker, Director of Community Services DATE: November 14, 2006 SUBJECT: Community Services Guide to Leisure Activities Brochure PREPARED BY: Julie Pelletier, Recreation Superintendent RECOMMENDATION: That the Board of Directors award an Amendment to the Agreement with Graphics Unlimited Lithography, Inc. to extend the term of the Agreement to June 30, 2007, increase the number of brochure copies and to include a cultural arts insert for an additional amount of $19,739. BACKGROUND: The City of Temecula entered into an Agreement with Graphics Unlimited Lithography, Inc. on October 12, 2004, in the amount of $40,370 to produce the Guide to Leisure Activities Brochure bi-annually. The Agreement was a two (2) year Agreement with a third (3) year option to renew. The services provided by the vendor include graphic design, camera-ready artwork, typesetting layout, final printing, and delivery to the U.S. Post Office for bulk direct mail delivery. The Guide to Leisure Activities Brochure serves as the primary marketing tool that provides the residents of Temecula a printed document which promotes leisure and cultural activities offered through the City. Staff has determined that this particular marketing tool is instrumental in generating over $500,000 in revenue annually and assists in building a sense of community through people, parks and programs. As a direct result of the overall benefits of this marketing tool, staff desires to extend the term of the Agreement for a third year, increase the number of brochures printed by 2,000 copies and include the Cultural Arts Brochure insert to enhance the overall recreational and cultural arts opportunities for the citizens of Temecula. FISCAL IMPACT: The cost to produce two (2) issues of the City of Temecula's Guide to Leisure Activity Brochure in fiscal year 06-07 is $60,109. This cost includes the eight page cultural arts insert, as well as the increased number of brochures printed. Unencumbered funds currently exist in the line item budget. ATTACHMENTS: 1) Amendment 2) Attachment "A" FIN06-12 FIRST AMENDMENT TO AGREEMENT BETWEEN CITY OF TEMECULA TEMECULA COMMUNITY SERVICES DISTRICT AND GRAPHICS UNLIMITED LITHOGRAPHY GUIDE TO LEISURE ACTIVITIES BROCHURE THIS FIRST AMENDMENT is made and entered into as of November 14, 2006 by and between the Temecula Community Services District, a municipal corporation ("City"), and Graphics Unlimited Lithography ("Consultant"). 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 October 12, 2004 The City and Consultant entered into that certain Agreement entitled "City of Temecula Agreement for Consultant Services" ("Agreement") in the amount of $40,370.00 annually. B. The parties now desire to exercise the option to extend the term of the Agreement for one year as stated in Section 1 of the Agreement to June 30, 2007. C. The parties also desire to increase the number of brochures printed by a quantity of 2,000 brochures at an additional total cost of $1,203.38, plus include a new Cultural Arts Brochure insert within the publications at an additional total cost of $17,332.24 for a total Agreement payment increase of $19,739.00 2. Section 1 TERM of the Agreement is hereby amended to read as follows: TERM. This Agreement shall commence on October 12, 2004 and 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 of the Agreement is hereby amended to read as follows: PAYMENT. a. The District agrees to pay Consultant monthly, in accordance with the payment rates and terms and the schedule of payment as set forth of Exhibit B, Payment Rates and Schedule attached hereto and incorporated herein by this reference as though set forth in full, based upon actual time spent on the above tasks. Any terms in Exhibit B other than the payment rates and schedule of payment are null and void. The amount of Amendment one (1) shall not exceed Nineteen Thousand Seven Hundred Thirty Nine Dollars and No Cents ($19,739.00) for the total term of the Agreement for a total Agreement amount of Sixty Thousand One Hundred and Nine Dollars and No Cents ($60,109.00) per District fiscal year for the term of the Agreement unless additional payment is approved as provided in this Agreement. 4. Exhibit B "Payment Rates and Schedule" 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. R\ Finance\Purchasing\.Agreements.06-07 .A-L \Graphics U nlimited.Amend1. FIN06-12 1113/06 5. Except for the changes specifically set forth herein, all other terms and conditions of the Agreement shall remain in full force and effect. INWITNESS WHEREOF , the parties hereto have caused this Agreement to be executed the day and year first above written. CITY OF TEMECULA BY: Jeff Comerchero, CSD President ATTEST: BY: Susan W. Jones, MMC, City Clerk Approved As to Form: BY: Peter M. Thorson, City Attorney CONSULTANT: Graphics Unlimited Lithography 43171 Business Park Drive Temecula, CA 92590-3666 Phone: 951-695-2444 Fax: 951-695-2544 BY: NAME: TITLE: BY: NAME: TITLE: R\ Finance\Purchasing\.Agreements.06-07 .A-L \Graphics U nlimited.Amend1. FIN06-12 1113/06 Attachment "A" Exhibit B Two (2) publications of the City of Temecula Guide To Leisure Activities brochure shall be printed per City fiscal year. The number of brochures printed shall be increased by 2,000 copies (35,000 to 37,000) at a cost of $601.69 per 1,000 copies for a total increase of $1 ,203.38. Plus, a Cultural Arts Brochure insert shall be added to each publication at an additional cost of $8,666.12 per issue for a total cost increase of $17,332.24. The cost of the additional copies plus the cost of the Cultural Arts insert equals a total payment increase of $19,739.00 for a total Agreement amount of $60,109.00 annually for the term of the Agreement. R\ Finance\Purchasing\.Agreements.06-07 .A-L \Graphics U nlimited.Amend1. FIN06-12 1113/06 ITEM NO. 36 Approvals City Attorney Director of Finance City Manager f,#.("" I//l !fr- TEMECULA COMMUNITY SERVICES DISTRICT AGENDA REPORT TO: General Manager/Board of Directors FROM: Herman D. Parker, Director of Community Services DATE: November 14, 2006 SUBJECT: Patricia H. Birdsall Sports Park Fees PREPARED BY: Julie Pelletier, Recreation Superintendent RECOMMENDATION: That the Board of Directors adopt a resolution entitled: RESOLUTION NO. CSD A RESOLUTION OF THE BOARD OF DIRECTORS OF THE TEMECULA COMMUNITY SERVICES DISTRICT OF THE CITY OF TEMECULA APPROVING A FEE SCHEDULE FOR THE USE OF THE PATRICIA H. BIRDSALL SPORTS PARK BACKGROUND: As the City of Temecula continues to grow in population, the need for the City to provide quality recreational and tournament designed athletic fields and facilities continues to increase both locally as well as regionally. The Patricia H. Birdsall Sports Park was designed to be used for local athletes throughout the week and to attract tournament play on the weekends for both youth and adults. The construction of this "state-of-the-art" facility is nearing completion. As a result of opening such a unique facility, the need to establish the appropriate fees to help defray the costs associated with providing qualified staffing, supplies, utilities, facility maintenance and program costs is necessary. The fee structure presented by the attached fee schedule is specifically designed for the fees directly associated with the use of the four lighted tournament designed synthetic soccer fields with one football overlay and the four lighted tournament designed baseball fields by both resident and non-resident user groups. FISCAL IMPACT: Revenues generated by the proposed fees are estimated to be $84,000 per year. These funds will be used to offset operation and maintenance costs of the Patricia H. Birdsall Sports Park. ATTACHMENTS: Resolution Fee Schedule RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA APPROVING A FEE SCHEDULE FOR USE OF THE PATRICIA H. BIRDSALL SPORTS PARK THE CITY COUNCIL OF THE CITY OF TEMECULA RESOLVES AS FOLLOWS: Section 1. This resolution is adopted in recognition of the following facts and circumstances: A. The City of Temecula desires to provide quality recreational and tournament designed athletic fields and facilities at the Patricia H. Birdsall Sports Park. B. It is necessary to establish fees to help defray costs associated with providing the required staffing, supplies, utilities, facility maintenance and similar program costs and the fees do not exceed the actual costs of providing these services and facilities. Section 2. The Patricia H. Birdsall Sports Park Fee Schedule, attached hereto as Exhibit "A", is hereby adopted. Section 3. The City Clerk shall certify to the passage and adoption of the Resolution. PASSED, APPROVED, AND ADOPTED, by the City Council of the City of Temecula this day of , 2006. Ron Roberts Mayor ATTEST: Susan W. Jones, MMC City Clerk c:\ WINDOWS\apsdoc\nettemp\840\$ASQpdf822381.doc STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss CITY OF TEMECULA ) I, Susan W. Jones, City Clerk of the City of Temecula, California, do hereby certify that Resolution No. _ was duly and regularly adopted by the City Council of the City of Temecula at a regular meeting thereof held on the _ day of ,2006 by the following vote: AYES: NOES: ABSENT: COUNCILMEMBERS: COUNCILMEMBERS: COUNCILMEMBERS: c:\ WINDOWS\apsdoc\nettemp\840\$ASQpdf822381.doc City of Temecula - Community Services Department PATRICIA H. BIRDSALL SPORTS PARK USE FEE SCHEDULE RESIDENT USE GROUPS FIELD LEAGUES TRAVEL LEAGUES CAMPS/ACADEMY TOURNAMENTS LIGHTING (CLUB) Youth Sport Non-Profit NL $0 hr $0 hr $8 hr N/A L $5 hr $7 hr $12 hr Youth Sport NL I $6 hr $8 hr I $10 hr $40 per team L I $10 hr $12 hr I $14 hr Adult Sport Non-Profit NL I $10 hr $10 hr I $16 hr $50 per team L I $14 hr $14 hr I $20 hr Adult Sport NL I $18 hr $20 hr I $22 hr $60 per team L I $22 hr $24 hr I $26 hr NON-RESIDENT USE GROUPS FIELD LEAGUES TRAVEL LEAGUES CAMPS/ACADEMY TOURNAMENTS LIGHTING (CLUB) Youth Sport Non-Profit NL N/A $18 hr $25 hr $70 per team L N/A $22 hr $29 hr Youth Sport NL I N/A $25 hr I $32 hr $85 per team L I N/A $29 hr I $36 hr Adult Sport Non-Profit NL I N/A $31 hr I $38 hr $95 per team L I N/A $35 hr I $42 hr Adult Sport NL N/A $40 hr $47 hr $115 per team L N/A $44 hr $51 hr OTHER GROUPS FIELD PRIVATE LIGHTING USERS Temecula Resident Private User NL $6 L $10 Temecula Corporate User NL I $18 L I $22 Non-Resident Private User NL I $18 L I $22 Corporate User (Non-Temecula) NL I $33 L I $37 1) NL (no lights) L (lights) 2) Non-Profit Organizations must have a State or Federal Non-Profit Tax I.D. Number 3) All non-residents must pay a $10 non-resident fee for seasonal league play, travel league seasonal play and camps or academy participation. c:\ WINDOWS\apsdoc\nettemp\5464 \$ASQpdf823528.doc TCSD DEPARTMENTAL REPORT ITEM NO. 37 Approvals City Attorney Director of Finance City Manager ~ /J~ * TEMECULA COMMUNITY SERVICES DISTRICT AGENDA REPORT TO: General Manager/Board of Directors FROM: Herman D. Parker, Director of Community Services DATE: November 14, 2006 SUBJECT: Monthly Departmental Report PREPARED BY: Gail Zigler, Administrative Assistant Construction of the Patricia H. Birdsall Sports Park (Wolf Creek Sports Complex) continues to move forward. Installation of the field lighting, irrigation systems, artificial turf fields and parking lot are complete. Installation of tot play areas is currently underway. Staff is finalizing discussions with concessionaires to operate the snack bar area. Construction of the Temecula Public Library project continues to move forward. Furnishings and information systems technology have been ordered. The First Year anniversaryforthe Old Town Temecula Community Theater was held on October 4, 2006. Crystal Gayle accompanied by the California Consort Orchestra performed to a sell-out audience. Staff continues to work with our architect Meyer and Associates in the design of an expansion to the Temecula Community Center. The expansion is estimated to be approximately 3500 square feet of office space that will be used by S.AFE. to provide Human Service Programs. The Public Works Department has completed the bid process for the Erie Stanley Gardner exhibit project, an expansion of the second floor of the history museum, and a contract was awarded to William Baines Contractors, Inc. Staff anticipates construction to begin in the next 30 days. The Cultural Arts Division continues to program and carry-out the classes and activities as outlined in the 2006 Summer/Fall Guide to Leisure Activities, and the Old Town Temecula Community Theater's musical and theatrical performance line-up. I n addition to classes and activities, there are many special events including theater performances, excursions, etc. The Cultural Arts Division is responsible for the day-to-day operations of the Old Town Temecula Community Theater, the Temecula Valley History Museum and the Imagination Workshop, Temecula Children's Museum. Staff is preparing for the dedication of the Phase II Paver installation at the Veteran's Monument located at the Temecula Duck Pond. The event will be held on November 11, 2006 at 11 :OOam. The Development Services Division continues to participate in the development review for projects within the City including Wolf Creek and Roripaugh, as well as overseeing the development of parks and recreation facilities, and the contract for refuse and recycling, cable television services and assessment administration. The TCSD Maintenance Division continues to oversee the maintenance of all City parks and facilities, and assist in all aspects of Citywide special events. The Recreation Division is currently carrying out the classes and activities as outlined in the 2006 Summer/Fall Guide to Leisure Activities. In addition, staff is planning and programming the upcoming fall and winter events including the Halloween Harvest Family Carnival, the annual Christmas Tree Lighting Ceremony, the Annual Santa's Electric Light Parade and more. REDEVELOPMENT AGENCY ITEM NO. 38 MINUTES OF A REGULAR MEETING OF THE TEMECULA REDEVELOPMENT AGENCY OCTOBER 10, 2006 A regular meeting of the City of Temecula Redevelopment Agency was called to order at 7:35 p.m., in the City Council Chambers, 43200 Business Park Drive, Temecula, California. ROLL CALL PRESENT: 5 AGENCY MEMBERS: Edwards, Comerchero, 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 12 Minutes RECOMMENDATION: 12.1 Approve the minutes of September 26, 2006. 13 Approval of Contract Chanqe Order NO.1 and Utility Reimbursement Aqreements (Eastern Municipal Water District and Rancho California Water District) for Relocation and Modification of Utilities on Diaz Road between Dendy Parkway and Cherrv Street Associated with the Temecula Education Center Rouqh Gradinq - Proiect No. PW06-03 RECOMMENDATION: 13.1 Approve an increase in contingency funds of $2,154,462.29, which is equal to 68.3% of the base contract amount, and authorize the Executive Director to approve change orders not to exceed the total contingency amount of $2,470,043.29 which represents 78.3% of the base contract amount; 13.2 Approve Contract Change Order NO.1 for the Temecula Education Center Rough Grading, Project No. PW06-03 to Yeager Skanska, Inc. in the amount of $2,154,462.29 and authorize the Executive Director to execute the Change Order from the contingency amount authorized; R:\Minutes\101006 13.3 Approve an Advance Reimbursement Agreement with the Eastern Municipal Water District (EMWD) for relocation and modification of their facilities in the amount of $2,367,016.88, which includes funds for the base work ($2,101,832.94), geotechnical observation & testing ($50,000), and a 10% contingency ($215,183.94) and authorize the Executive Director to execute the Agreement; 13.4 Approve a Reimbursement Agreement in the amount of $52,629.35 with the Rancho California Water District (RCWD), and authorize the Executive Director to execute the Agreement; 13.5 Approve an additional appropriation of $729,351.23 ($1,690,295.00 was appropriated in FY06-07 Budget) for the Temecula Education Center Rough Grading Project No. PW 06-03 from Advance Reimbursement from EMWD and Reimbursement from the RCWD, respectively; 13.6 Establish estimated revenues for the Temecula Rough Grading Project No. PW 06- 03 in the amount of $2,367,016.88 and $52,629.35 ($2,419,646.23 total of which $1,690,295.00 was appropriated in the FY06-07 Budget) for Advance Reimbursement from EMWD for Reimbursement from RCWD, respectively; 13.7 Authorize the granting of an easement, through approval process for the Education Center Parcel Map, to EMWD for relocation of their 36" sewer line within City property that will be conveyed to Riverside County Flood Control for the future Murrieta Creek Flood Control Project. MOTION: Agency Member Washington moved to approve the Consent Calendar. Agency Member Edwards seconded the motion and electronic vote reflected unanimous approval. RDA EXECUTIVE DIRECTOR'S REPORT No additional comment. RDA AGENCY MEMBERS' REPORTS No additional comments. R:\Minutes\101006 2 RDA ADJOURNMENT At 7:37 p.m., the Temecula Redevelopment Agency meeting was formally adjourned to Tuesday, October 24, 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\101006 3 AGENCY BUSINESS ITEM NO. 39 Approvals City Attorney Director of Finance City Manager ~ /JJL Jfr TEMECULA REDEVELOPMENT AGENCY AGENDA REPORT TO: Executive Director/Agency Members FROM: Genie Roberts, Director of Finance DATE: November 14, 2006 SUBJECT: Issuance of Two Series of Tax Allocation Bonds by the Redevelopment Agency of the City of Temecula for the Temecula Redevelopment Project NO.1 PREPARED BY: Polly von Richter, Senior Debt Analyst RECOMMENDATION: That the Board of Directors: 1. Adopt a resolution entitled: RESOLUTION NO. RDA 06- A RESOLUTION OF THE BOARD OF DIRECTORS OF THE TEMECULA REDEVELOPMENT AGENCY OF THE CITY OF TEMECULAAUTHORIZING THE ISSUANCE AND SALE OF TWO SERIES OF TAX ALLOCATION BONDS IN CONNECTION WITH TEMECULA REDEVELOPMENT PROJECT NO.1, AND APPROVING RELATED DOCUMENTS AND ACTIONS BACKGROUND: On August 8,2006, the Redevelopment Agency adopted Resolution No. RDA 06-06, expressing the intent of the Agency to issue tax allocation bonds to finance various Old Town area infrastructure projects, including relocation, demolition and grading costs, undergrounding of utilities, street improvements, civic plaza improvements and the construction of a roughly 480 space parking facility. On September 12, 2006 the Redevelopment Agency adopted Resolution No. RDA 06-07, designating various professionals, including a financial advisor, a fiscal consultant, bond counsel, disclosure counsel and a bond underwriter, to assist the Redevelopment Agency in connection with the issuance of the bonds. The Redevelopment Agency, working with its consultants, has determined that the issuance of bonds in two series will result in the most funds available to finance the redevelopment projects. One series of bonds, referred to in the bond documents as "Series A," is to be issued on a parity basis with the Redevelopment Agency's outstanding 2002 tax allocation bonds, and it is expected that a bond insurance policy and reserve fund surety bond will be obtained for the Series A bonds so that they will be rated in the highest rating category by the municipal bond rating agency that will rate the bonds. The second series of bonds, referred to in the bond documents as "Series B," is to be issued on a basis subordinate to the Series A bonds (and the outstanding 2002 Redevelopment Agency bonds), and will not be rated by a municipal rating agency. The Series A and Series B bonds are hereafter collectively referred to as the "Bonds." The proposed Bond issues will be payable solely from a pledge of the Tax Revenues arising from the Redevelopment Project. Tax increment revenues required by the Redevelopment Law to be used for housing purposes will not be pledged to or used for the repayment of the Bonds. No City general funds or other moneys will in any way be pledged or obligated towards the payment of the Bonds. The Agency is proposing to issue the Bonds in an aggregate principal amount such that will maintain a debt service coverage ratio (annual available Tax Revenues divided by annual Bond debt service) of at least 110%, thereby assuring that a portion of the Tax Revenues will be available after the payment of Bond debt service to pay annual administrative costs of the Agency. While current interest rates indicate that the aggregate initial principal amount of the Bonds will be approximately $21,500,000, the Agency is seeking a bond authorization of up to $35,000,000 in the event that interest rates decrease prior to the sale of the Bonds thereby allowing for more Bond principal to be supported by the same level of Tax Revenues. In the event that interest rates rise prior to the sale of the Bonds, less principal may be sold than currently projected. In order to issue the Bonds, the Redevelopment Law requires that the City Council approve the issuance of the Bonds by the Agency. In addition, in order for the Agency to sell the Bonds on a negotiated basis with Stone & Youngberg LLC, the bond underwriter that has been working with the Agencyon the Bond issue (the "Underwriter"), relevant State law requires that the Temecula Public Financing Authority buy the Bonds from the Agency for resale to the Underwriter. The purchase price from the Agency to be paid by the Public Financing Authoritywill be the same as the sale price of the Bonds by the Public Financing Authority to the Underwriter, so no Public Financing Authority funds are involved in the transaction. The proposed resolution of the Public Financing Authority approves the purchase and sale by it of the Bonds and makes related findings required by applicable law. The Agency resolution being presented for approval authorizes the issuance of the Bonds and approves the related financing documents including a draft of an "Official Statement" that describes the terms of the Bonds. These documents will be finalized when the exact terms of the Bonds are determined at the time the Bonds are sold to investors, expected to occur in late November. The date for the closing of the Bond issue, and the time when Bond proceeds are expected to be available, is currently expected to be December 14'h The action requested of the Agency is to adopt a resolution authorizing the issuance of the Bonds and approving the related financing documents. FISCAL IMPACT: The Bonds will have no financial impact on the City or the Public Financing Authority, as all payments of principal and interest on the Bonds will be paid solely from the Tax Revenues of the Agency. The Agency will be obligated to use Tax Revenues from the Redevelopment Project each year to pay the debt service on the Bonds, and to pay the annual costs of administering the Bond program. ATTACHMENTS: Resolution No. RDA 06- Preliminary Official Statement First Supplemental Indenture of Trust (for the Series A Bonds) Indenture of Trust (for the Series B Bonds) Continuing Disclosure Certificate Bond Purchase Agreement RESOLUTION NO. RDA 06- A RESOLUTION OF THE BOARD OF DIRECTORS OF THE TEMECULA REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA AUTHORIZING THE ISSUANCE AND SALE OF TWO SERIES OF TAX ALLOCATION BONDS IN CONNECTION WITH TEMECULA REDEVELOPMENT PROJECT NO.1, AND APPROVING RELATED DOCUMENTS AND ACTIONS THE BOARD OF DIRECTORS OF THE TEMECULA REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA DOES HEREBY RESOLVE AS FOLLOWS: Section 1. Part 1 of Division 24 of the Health and Safety Code of the State of California, as amended (the "Law"), authorizes redevelopment agencies to incur indebtedness for the purpose of financing redevelopment activities within or of benefit to redevelopment project areas of redevelopment agencies. Section 2. The Redevelopment Agency of the City of Temecula (the "Agency") now desires to finance redevelopment activities within or of benefit to the Agency's Temecula Redevelopment Project No.1 (the "Redevelopment Project"). Section 3. The Agency has determined at this time to issue two series of revenue bonds (collectively, the "Bonds"), under the provisions of the Law to finance such activities, with the payment of the principal of and interest on (a) the Series A Bonds (as defined below) to be secured by a pledge of the tax increment revenues received by the Agency from the Redevelopment Project (the "Tax Increment Revenues") on a parity with the pledge thereof to the payment of the Agency's Temecula Redevelopment Project No.1 2002 Tax Allocation Bonds; and (b) the Series B Bonds (as defined below) to be secured by a pledge of the Tax Increment Revenues subordinate to the pledge thereof with respect to the Series A Bonds and certain other outstanding bonds and obligations of the Agency. 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, including the Law, and the Agency now desires to authorize the issuance of the Bonds, as provided herein. Section 5. The Agency hereby authorizes the issuance of its Temecula Redevelopment Project No. 1 2006 Tax Allocation Bonds, Series A (the "Series A Bonds") in the initial principal amount of not to exceed $25,000,000. The Series A Bonds shall be issued pursuant to the Law and an Indenture of Trust, dated as of April 1, 2002 (the "Original Indenture"), by and between the Agency and U.S. Bank National Association, successor to U.S. Bank, NA, as trustee (the "Trustee"), as amended and supplemented by a First Supplemental Indenture of Trust, dated as of December 1, 2006 (the "First Supplement"), between the Agency and the Trustee. The Agency hereby approves the First Supplement in the form on file with the Secretary, together with such additions thereto and changes therein as the Executive Director, upon consultation with Bond Counsel and the Agency's General Counsel, shall deem necessary, desirable or appropriate, and the execution thereof by the Executive Director shall be conclusive evidence of the approval of any such additions and changes. The Executive Director is hereby authorized and directed to execute, and the Secretary is hereby authorized and directed to attest the final form of the First Supplement for and in the name and on behalf of the Agency. The Agency hereby authorizes the delivery and performance of the First Supplement as so executed, and hereby ratifies and confirms the provisions of the Original Indenture. Section 6. The Agency hereby authorizes the issuance of its Temecula Redevelopment Project No.1 2006 Tax Allocation Bonds, Series B (Subordinate Lien) (the "Series B Bonds") in the aggregate principal amount of not to exceed $10,000,000. The Series B Bonds shall be issued pursuant to the Law and pursuant to an Indenture of Trust, dated as of December 1, 2006 (the" Series B Indenture"), by and between the Agency and the Trustee. The Agency hereby approves the Series B Indenture in the form on file with the Secretary, together with such additions thereto and changes therein as the Executive Director, upon consultation with Bond Counsel and the Agency's General Counsel, shall deem necessary, desirable or appropriate, and the execution thereof by the Executive Director shall be conclusive evidence of the approval of any such additions and changes. The Executive Director is hereby authorized and directed to execute the final form of the Series B Indenture for and in the name and on behalf of the Agency. The Agency hereby authorizes the delivery and performance of the Series B Indenture as so executed. Section 7. The Agency hereby approves the bond purchase contract, by and among Stone & Youngberg LLC, as underwriter (the "Underwriter"), the Temecula Public Financing Authority (the "Authority"), and the Agency, in the form on file with the Secretary (the "Bond Purchase Agreement"), together with such additions thereto and changes therein as the Executive Director, upon consultation with Bond Counsel and the Agency's General Counsel, shall deem necessary, desirable or appropriate, and the execution thereof by the Executive Director or his designee shall be conclusive evidence of the approval of any such additions and changes. The Executive Director, or any designee of the Executive Director, is hereby authorized and directed to execute the final form of the Bond Purchase Agreement for and in the name and on behalf of the Agency. The Agency hereby approves the negotiated sale of the Bonds to the Authority, and the sale of the Bonds by the Authority to the Underwriter, pursuant to the Bond Purchase Agreement, so long as the Underwriter's discount, excluding original issue discount, does not exceed 1.50% of the principal amount of the Bonds, the net interest cost of the Series A Bonds does not exceed 5.50% and the net interest costs of the Series B Bonds does not exceed 6.00%, and the initial principal amount of the Series A Bonds is not in excess of $25,000,000 and the initial principal amount of the Series B Bonds is not in excess of $1 0,000,000. Section 8. The Agency hereby authorizes the Executive Director to approve and deem final within the meaning of Rule 15c2-12 of the Securities Exchange Act of 1934, except for permitted omissions, a form of Official Statement describing the Bonds in the preliminary form on file with the Secretary. Distribution of such preliminary Official Statement by the Underwriter to prospective purchasers of the Bonds is hereby approved. The Executive Director is hereby authorized to execute the final form of the Official Statement, including as it may be modified by such additions thereto and changes therein as the Executive Director, upon consultation with Bond Counsel and the Agency's General Counsel, shall deem necessary, desirable or appropriate, and the execution of the final Official Statement by the Executive Director shall be conclusive evidence of the approval of any such additions and changes. The Agency hereby authorizes the distribution of the final Official Statement by the Underwriter. Section 9. The Bonds, when executed, shall be delivered to the Trustee for authentication. The Trustee is hereby requested and directed to authenticate the Bonds by executing the Trustee's certificate of authentication and registration appearing thereon, and to deliver the Bonds, when duly executed and authenticated, to or upon the instruction of the Underwriter in accordance with written instructions executed on behalf of the Agency by the Executive Director, which instructions such officer is hereby authorized and directed, for and in the name and on behalf of the Agency, to execute and deliver to the Trustee. Such instructions shall provide for the delivery of the Bonds to the Underwriter in accordance with the Bond Purchase Agreement upon payment of the purchase price therefor. Section 10. The Continuing Disclosure Certificate, in the form on file with the Secretary, is hereby approved. The Executive Director is hereby authorized and directed, for and in the name of and on behalf of the Agency, to execute and deliver the Continuing Disclosure Certificate in said form, with such additions thereto or changes therein as the Executive Director, upon consultation with Disclosure Counsel, shall deem necessary, desirable or appropriate, the approval of such changes to be conclusively evidenced by the execution and delivery by the Executive Director of the Continuing Disclosure Certificate. Section 11. The Chairman, the Vice Chairman, the Executive Director, the Treasurer and the Secretary of the Agency, and any and all other officers of the Agency, are hereby authorized and directed, for and in the name and on behalf of the Agency, to do any and all things and take any and all actions, including execution and delivery of any and all assignments, certificates, requisitions, agreements, notices, consents, instruments of conveyance, warrants and other documents which they, or any of them, may deem necessary or advisable in order to consummate the lawful issuance and sale of the Bonds as described herein. The Board of Directors specifically authorizes Agency Staff to obtain a policy of bond insurance and a reserve account surety bond for the Series A Bonds and to execute any documents required in connection therewith, as contemplated by the First Supplement. Whenever in this resolution any officer of the Agency is authorized to execute or countersign any document or take any action, such execution, countersigning or action may be taken on behalf of such officer by any person designated by such officer to act on his or her behalf in the case such officer shall be absent or unavailable. Section 12. This Resolution shall take effect upon its adoption. PASSED, APPROVED, AND ADOPTED by the Board of Directors of the Temecula Redevelopment Agency of the City of Temecula this 14th day of November , 2006. Michael S. Naggar,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 Redevelopment Agency of the City of Temecula, do hereby certify that the foregoing Resolution No. RDA 06- was duly and regularly adopted by the Board of Directors of the Temecula Redevelopment Agency of the City of Temecula at a meeting thereof held on the 14th day of November , 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 PRELIMINARY OFFICIAL STATEMENT Redevelopment Agency of the City of Temecula Temecula Redevelopment Project No.1 2006 Tax Allocation Bonds PRELIMINARY OFFICIAL STATEMENT DATED [NOVEMBER 16],2006 NEW ISSUE - BOOK-ENTRY ONLY RATINGS Series A Bonds Insured Rating: (Insured) S&P: Series A Bonds Underlying Ratfng: Series B Bonds: NOT RATED (See "Ratings" herein) In the opinion of Quint & ThimmigLLP, San Francisco, Califomia,Bond Counsel, subject, however, to certain qualifications described herein, under existing law, the interest on the 2006Bonds is excludable from gross income of the owners thereof for federal income tax purposes and is not included as an item aftax preference in computing the federal alternative minimum tax for individuals and corporations under the Internal Revenue Code of 1986, as amended, but is taken into account in computing an adjustment used in determining the federal alternative minimum tax for certain corporations. In the further opinion of Bond Counsel, such interest is exempt from California personal income taxes. See "TAX MATlERS" herein. REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA TEMECULA REDEVELOPMENT PROJECT NO.1 $17,340,000' 2006 TAX ALLOCATION BONDS, SERIES A AND $4,025,000' 2006 TAX ALLOCATION BONDS, SERIES B (SUBORDINATE LIEN) (RIVERSIDE COUNTY, CALIFORNIA) Dated: Date of Issuance Series A Bonds Due: August 1, as set forth below Series B Bonds Due: December 15, as set forth below Proceeds from the sale of the Redevelopment Agency of the City of Temecula (the "Agency") Temecula Redevelopment Project No.1 2006Tax Allocation Bonds, Series A (the "Series A Bonds") and its 2006 Tax Allocation Bonds, Series B (Subordinate Lien) (the" Series B Bonds" and, collectively with the Series A Bonds, the "2006 Bonds") will be used to (i) finance redevelopment activities within or of benefit to the Project Area,(ii) establish a Senior Subaccountwithin the Reserve Account for the Series ABonds all or a portion of which maybe funded by a reserve surety for the Series A Bonds (the "Series A Debt Service Reserve Surety Bond") in satisfaction ofthe Reserve Requirement for the Series A Bonds, (iii) establish a Subordinate Subaccountwithin theReserve Account for the Series B Bonds in satisfaction of the Reserve Requirementfor the Series B Bonds, and (iv) provide for the costs of issuing the 2006 Bonds, including the premium for the financial guaranty insurance policy and the Series A Debt Service Reserve Surety Bond. Interest on the Series A Bondswillbe payable semi-annually on each February 1 and August 1, commencing February 1, 2007 and interest on the Series B Bondswill be payable semi-annually on each June 15 andDecember 15 (each an "lnterestPayment Date," as applicable), commencing June 15, 2007. The 2006 Bondswill be issued in fully-registered form without coupons and will be registered in thename of Cede & Co., as nominee for The Depository Trust Company, New York, New York ("DTC"). DTC will act as securities depository for the 2006 Bonds. Purchases of beneficial interests in the 2006 Bondswill be made in book-entryform only in denominations of$5,000 or any integral multiple thereof. Purchasers of such beneficial interestswill not receive physical certificates representing their interests in the 2006 Bonds. Payment of principal of, interest and premium, if any, on the 2006 Bondswill bemade directlytoDTC or its nominee, Cede &Co., so long as DTC or Cede & Co. is the registered Owner of the 2006 Bonds. Disbursement of such payments to the DTC Participants (as defined herein) is the responsibility ofDTC and disbursement of suchpaymentsto the Beneficial Owners (as defined herein) isthe responsibility of the DTCParticipants, as more fully described herein. See "THE 2006 BONDS - Book-Entry and DTC" herein. The Series A Bonds will issued under a First Supplemental Indenture of Trust, dated as of December 1, 2006 (the "Supplemental Indenture" and together with the Indenture of Trust, dated as of April 1 , 2002, by and between u.S. Bank National Association, as trustee (the "Trustee") andthe Agency, the "Senior Indenture"), andthe Series B Bondswill be issued under an Indenture of Trust, dated as of December 1,2006 (the"SeriesB Indenture" and togetherwith the Senior Indenture, the "Indentures"), by and behveen the Agency andthe"Trustee". The 2006 Bonds will be sold to the TemeculaPublic Financing Authority (the "Authority") for immediate resale to the UndeIWriter. The 2006 Bonds are special obligations of the Agency and are payable solely from and secured by a pledge of a portion of the tax increment revenues (as defined herein) receivable by the Agencywith respect to the Project Area pursuant to Article 6 of Chapter 6 of the Community Redevelopment Law (herein referred toas the "Tax Increment Revenues"), subjectto the provisions of the Indenturespermittingthe application thereoffor other purposes, and bya pledge of amounts in certain funds and accounts established under the Indentures, as further discussed herein, with the pledge for the Series B Bonds subordinate to the pledge of and lien on the Tax Increment Revenues under the Senior Indenture, the Financial Guaranty Agreement and the 2006 Financial Guaranty Agreement (as defined herein). The Agency may issue debt on a parity with the Series A Bonds or the Series B Bonds. herein. The 2006 Bonds are subject to optional and mandatory redemption prior to maturity. See "THE 2006 BONDS - Redemption" The scheduled payment of principal and interest on the Series A Bondswill be insuredby amunicipal bond insurance policy to be issued simultaneously with delivery of the Series A Bonds by [INSURER]. [INSURER LOGO] PAYMENT OF lHE SERIES B BONDS IS NOT SECURED BY lHEMUNICIPAL BOND INSURANCE POLICY. TIIE SERIES B BONDS ARE PAYABLEFROM TAX INCREMENT REVENUES ON A SUBORDINATE BASIS TOTIIE SERIESA BONDS AND lHE2002 BONDS, AS DESCRIBED HEREIN. TIIESERIES B BONDS ARE NOTRATED BY ANY AGENCY, INVOLVE A HIGH DEGREE OF RISK AND ARE NOT SUITABLE FORALLINVESTORS. SEE "RISK FACTORS." TIIE2006BONDS ARESPECIAL OBLIGA TIONSOF TIIEAGENCY PAY ABLEFROM TIIE TAXINCREMENTREVENUES, AS DESCRIBED HEREIN , AND AMOUNTS IN CERTAIN FUNDS AND ACCOUNTS MAINTAINED UNDER TIIE INDENTURE AND, AS SUCH, ARE NOT A DEBT OFlHE CITY OF TEMECULA (lHE "CITY") OR TIIE STATE OF CALIFORNIA (lHE "STATE') OR ANY OF TIIE STATE'S POLmCAL SUBDNISIONS (OTIIER lHAN TIIE AGENCY, TO TIIE LIMITED EXTENT SET FORTIl IN TIIE INDENTURES), AND NEITlIER TIlE CITY NOR lHE STATE OR ANY OF ITS POLmCAL SUBDIVISIONS (OTIlER TIIANlHEAGENCY) IS LIABLE lHEREFOR. lHE 2006 BONDS ARE NOTPAYABLEFROM,AND ARE NOT SECURED BY, ANY FUNDS OF TIlE AGENCY, OTIlER TIlANlHE TAX INCREMENT REVENUES AND lHE FUNDS PLEDGED PURSUANT TOlHE INDENTURES. TIIE 2006 BONDS DO NOT CONSTIrUTE AN INDEBTEDNESS \VIlHIN lHEMEANING OF ANY CONSTITUTIONAL OR STATUTORY DEBT LIMITATION OR * Preliminary, subject to change. RESTRICTION. NEITlIER TIlE MEMBERS OF TIIEAGENCY NOR ANY PERSONSRESPONSIBLE FOR TIlEEXECUTION OF TIIE 2006 BONDSARE LIABLE PERSONALLY FOR PAYMENT OFTIlE2006 BONDS. MATURITY SCHEDULE (See Inside Cover) Thiscover page contains information for quick reference only. It is not intended to be a summary of all factors relating to an investment in the 2006 Bonds. Investors should review the entire Official Statement before making any investment decision with respect to the 2006 Bonds. The2006 Bonds are olferedwhen, as and ifissued, subject to the approval asto their legality by Quint & Thimmig LLP, San Francisco, California, Bond Counsel, and subject to certain other conditions. Certain legal matters will be passed upon for the Agency by Richards, Watson &Gershon, LosAngeles, California, acting as Counsel to the Agency, and by McFarlin & Anderson LLP, Lake Forest, California, in its capadty as Disclosure Counsel to the Agency. It is anticipated that the 2006 Bonds will be available for delivery through DTC in New York, New York, on or about December 14, 2006. Dated: , 2006 Maturity (Aue:ust 1) 2007 2008 2009 2010 2011 2012 2013 2014 2015 Maturity (December 15) 2008 2009 2010 2011 2012 2013 2014 2015 2016 MATURITY SCHEDULE' TEMECULA REDEVELOPMENT PROJECT NO.1 2006 TAX ALLOCATION BONDS. SERIES A $ Serial Series A Bonds -Base CUSIP@No. t Principal Amount $ CUSIP@ ~t Interest ...BillL % Yield % Maturity (Aue:ust 1) 2016 2017 2018 2019 2020 2021 2022 2023 20 Principal Amount $ CUSIP" No.t Interest Rate % Yield % $ $ __% Tenn Series A Bonds due August 1, 20__ - Yield__% CUSIP@No. __% Tenn Series A Bonds due August 1, 2038 - Yield__% CUSIP@No. TEMECULA REDEVELOPMENT PROJECT NO.1 2006 TAX ALLOCATION BONDS. SERIES B (SUBORDINATE LIEN) $ Serial Series B Bonds -Base CUSIP@ No. t Principal Amount $ CUSIP@ ~t Interest ...BillL % Yield % $ $ Maturity (December 15) 2017 2018 2019 2020 2021 2022 2023 20 __% Tenn Series B Bonds due December 15, 20 - Yield __% Tenn Series B Bonds due December 15, 2038 - Yield 'preliminary, subject to change. Principal Amount $ CUSIP" No.t Interest Rate % Yield % % CUSIP @ No. % CUSIP @ No. t CUSIP@ A registered trademark of the American Bankers Association. Copyright I(J 1999-2006 Standard & Poor's, a Division of The McGraw-Hill Companies, Inc. CUSI!'" data herein is provided by Standard & Poor's CUSIP@ Service Bureau. This data is not intended to create a database and does not serve in any way as a substitute for the CUSIP@ Service Bureau. CUSIP@ numbers are provided for convenience of reference only. Neither the Agency nor the Underwriter take any responsibility for the accuracy of such numbers. Thefollowing language to be inserted by the printer, in red, at the top of the POSfront cover: PRELIMINARY OFFICIAL STATEMENT DATED [NOVEMBER 16],2006 The following language to be inserted by the printer, in red, vertically along the left margin of the POS front cover: This Preliminary Official Statement and the information contained herein are subject to completion or amendment. Under no circumstances shall this Preliminary Official Statement constitute an offer to sell or a solicitation of an offer to buy nor shan there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. GENERAL INFORMATION ABOUT THE OFFICIAL STATEMENT UseofOfficialStatement. This Official Statement is submitted in connection with the offer and sale of the 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 of the 2006 Bonds. All summaries of the documents referred to in this Official Statement are made subject to the provisions of such documents, respectively, and do not purportto be complete statements of any or all of such provisions. Estimates and Forecasts. When used in this Official Statement and in any continuing disclosure by the Agency in any press release and in any oral statement made with the approval of an authorized officer of the Agency or any other entity described or referenced herein, the words or phrases "will likely result," "are expected to," '\vill continue," "is anticipated," "estimate," "project," ''forecast,'' "expect," "intend," and similar expressions identify "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 21E of the United States Securities Exchange Act of 1934, as amended, and Section 27 A of the United States Securities Act of 1933, as amended. Such statements are subjectto risks and uncertainties that could cause actual results to differ materially from those contemplated in such forward-looking statements. Any forecast is subject to 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 of the Agency or any other entity described or referenced herein since the date hereof. The Agency 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 Agency to give any information or to make any representations in connection with the offer or sale of the 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 Agency 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 of the 2006 Bonds by a person in any jurisdiction in which it is unlawful for such person to make such an offer, solicitation or sale. lnvolvementof Underwriter. 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. Stabilization of Prices. In connection with this offering, the Underwriter may overallot or effect transactions which stabilize or maintain the market price of the 2006 Bonds at a level above that which might otherwise prevail in the open market. Such stabilizing, if commenced, may be discontinued at anytime. 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. [INSURER] ("[INSURER]") makes no representation regarding the 2006 Bonds or the advisability of investing in the 2006 Bonds and makes no representation regarding, nor has it participated in the preparation of, the Official Statement other than the information supplied by [INSURER] and presented under the captions "INTRODUCTION - Municipal Bond Insurance" and APPENDIX G -"Specimen Municipal Bond Insurance Policy" herein. THE 2006BONDS HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, IN RELIANCE UPON AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS CONT AlNED IN SUCH ACT. THE 2006 BONDS HAVE NOT BEEN REGISTERED OR QUALIFIED UNDER THE SECURITIES LAWS OF ANY STATE. REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA AGENCY BOARD MEMBERS Michael S. Naggar, Chairperson Maryann Edwards, Vice Chairperson Ron Roberts, BoardMember Charles W. Washington, BoardMember Jeff Comerchero, Board Member AGENCY STAFF Shawn Nelson, Executive Director Genie Roberts, Agency Treasurer John Meyer, Director of Redevelopment Susan Jones, Agency Secretary SPECIAL SERVICES Counsel to the Agency Richards, Watson & Gershon Los Angeles, California Bond Counsel Quint & Thirnmig LLP San Francisco, California Disclosure Counsel McFarlin & Anderson LLP Lake Forest, California Fiscal Consultant HdL Companies Diamond Bar, California Financial Advisor Fieldman, Rolapp & Associates Irvine, California Trustee U.S. Bank National Association Los Angeles, California TABLE OF CONTENTS Pa~e INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 1 General .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 1 The Authority, the Agency and the Redevelopment Plan. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 2 Purpose ofIssuance ........................................................... 2 The 2006 Bonds .............................................................. 3 Source of Payment for the Bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 3 Parity Debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 3 Bondowners' Risks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 4 Continuing Disclosure ......................................................... 4 Tax Matters. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 4 Municipal Bond Insurance ...................................................... 4 Professionals Involved in the Offering . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 4 Additional Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 5 ESTIMATED SOURCES AND USES OF FUNDS ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 5 Redevelopment Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 5 DEBT SERVICE SCHEDULE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 6 THE 2006 BONDS .................................................................. 7 General Provisions ............................................................ 7 Redemption. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 7 Book-Entry and DTC ......................................................... 11 Discontinuance of DTC Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 11 SECURITY FOR THE 2006 BONDS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 11 Tax Increment Revenues. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 11 Pledge of Tax Increment Revenues .............................................. 12 Limited Obligations .......................................................... 13 Application of Tax Increment Revenues .......................................... 13 Reserve Account. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 16 County Payment of Tax Increment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 17 Parity Debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 18 THE [INSURER] INSURANCE POLICY ............................................... 21 The [INSURER] Insurance Policy .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 21 [INSURER] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 21 [INSURER] Information. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 21 Financial Strength Ratings of [INSURER] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 21 RISK FACTORS ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 22 Bonds Are Limited Obligations and Not General Obligations. . . . . . . . . . . . . . . . . . . . . . . . .. 22 Tax Increment Revenues. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 22 Estimated Tax Increment Revenues .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 23 Educational Revenue Augmentation Fund; State Budget Uncertainties .................. 23 Economic Concentration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 23 Concentration of Ownership. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 23 Future Land Use Regulations and Growth Control Initiatives . . . . . . . . . . . . . . . . . . . . . . . . .. 23 Bankruptcy and Foreclosure. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 24 County Payment of Tax Increment Revenues. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 24 SeismIc Factors and Flooding. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 24 Hazardous Substances. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 24 School District Litigation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 25 No Acceleration on Default . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 25 Loss of Tax Exemption. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 25 Assumptions and Projections ................................................... 25 SPECIAL RISK CONSIDERATIONS SPECIFIC TO THE SERIES B BONDS. . . . . . . . . . . . . . . . .. 25 -I- Subordination of Series B Bonds; Issuance of additional Parity Debt. . . . . . . . . . . . . . . . . . .. 25 Limited Secondary Market . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 26 No Ratings of Series B Bonds .................................................. 26 No Insurance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 26 LIMITATIONSONTAXINCREMENTREVENUES ..................................... 26 Property Tax Collection Procedure .............................................. 26 Supplemental Assessments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 27 Tax Collector Fees ........................................................... 27 Unitary Property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 27 Property Tax Rate Limitations - Article XIIIA .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 27 Article XIIIB of the California Constitution. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 28 Pass-Through Agreements; Other Contractual Obligations. . . . . . . . . . . . . . . . . . . . . . . . . . .. 29 Exclusion of Tax Increment Revenues for General Obligation Bonds Debt Service. . . . . . . .. 30 Proposition 218 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 31 Future Initiatives or Legislation ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 31 Low and Moderate Income Housing. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 31 Redevelopment Plan Limitations ................................................ 31 THE REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA . . . . . . . . . . . . . . . . . . . . . . .. 32 Agency Members ............................................................ 32 Agency Administration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 32 Agency Powers ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 32 Limitations Under 1991 Settlement Agreement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 33 Outstanding Indebtedness of the Agency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 33 Investment of Agency Funds ................................................... 34 Controls, Land Use and Building Restrictions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 34 THE REDEVELOPMENT PLAN. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 37 Description oflbe Project Area ................................................. 37 Proceeds of the Bonds. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 37 Land Uses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 38 Development in the Project Area . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 38 Assessed Valuation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 39 Appeals of Assessed Values . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 40 Direct and Overlapping Bonded Debt ............................................ 42 Project Area Pass-Through Agreements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 43 COVERAGE ANALYSIS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 43 THE TEMECULA PUBLIC FINANCING AUTHORITY. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 45 CERTAIN LEGAL MATTERS ........................................................ 45 ~~~..............................................................~ Enforceability of Remedies .................................................... 45 CONTINUING DISCLOSURE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 45 ABSENCE OF LITIGATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 46 TAXMATTERS ................................................................... 46 UNDERWRITING. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 46 RATINGS ........................................................................ 47 PROFESSIONAL FEES ............................................................. 47 MISCELLANEOUS ................................................................ 47 -11- APPENDIX A - SUMMARY OF CERTAIN PROVISIONS OF THE INDENTURES ......... A-I APPENDIXB - FISCAL CONSULTANT'S REPORT .................................. B-1 APPENDIX C REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA ANNUAL FINANCIAL AND COMPLIANCE REPORT FOR FISCAL YEAR ENDING JUNE 30, 2006 ............................................ C-l FORM OF OPINIONS OF BOND COUNSEL ........................... D-l FORM OF CONTINUING DISCLOSURE CERTIFICATE ... . . . . . . . . . . . . .. E-l GENERAL INFORMATION REGARDING THE CITY ................... .F-l SPECIMEN MUNICIPAL BOND INSURANCE POLICY .................. G-l BOOK-ENTRY SYSTEM. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. H-l APPENDIX D APPENDIX E APPENDIX F APPENDIX G - APPENDIX H -111- [INSERT REGIONAL AREA MAP IN LIEU OF THIS PAGE] OFFICIAL STATEMENT REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA TEMECULA REDEVELOPMENT PROJECT NO.1 $17,340,000' 2006 TAX ALLOCATION BONDS, SERIES A AND $4,025,000' 2006 TAX ALLOCATION BONDS, SERIES B (SUBORDINATE LIEN) (RIVERSIDE COUNTY, CALIFORNIA) INTRODUCTION This introduction is not a summary of this Official Statement. ] t is only a brief description of and guide to, and is qualified in its entirety by, morecompTete and detailed information contained in this Official Statement and the documents summarized or described herein. A full review should be made of the entire Official Statement. The offering of the 2006 Bonds to potential investors is made only by means of this Official Statement. References to, and summaries of, provisions of the laws of the State of California or any other document referred to herein do not purport to be complete and such references are qualified in their entirety by reference to the original source document. General This Official Statement of the Redevelopment Agency of the City of Temecula (the "Agency") provides information regarding the sale by the Agency of $17,340,000' aggregate principal amount of the Redevelopment Agency of the City of Temecula Temecula Redevelopment Project No. 1 2006 Tax AllocationBonds, Series A (the "Series A Bonds") and its $4,025,000' aggregate principal amount of the 2006 Tax Allocation Bonds, Series B (Subordinate Lien) (the "Series B Bonds" and, collectively with the Series A Bonds, the "2006 Bonds"). The Series A Bonds, the 2002 Bonds (as defined herein) and any additional parity debt ("Parity Debt") issued or incurred by the Agency are secured under a First SupplementalIndenture of Trust, dated as of December 1, 2006 (the "Supplemental Indenture" and together willi the Indenture of Trust, dated as of April 1, 2002, by and between the Agency and U.S. BankNational Association, as trustee (the "Trustee"), the "Senior Indenture''), as it may be supplemented hereafter. The Seri", B Bonds will be issued under an Indenture of Trust, dated as of December 1, 2006 (the "Series B Indenture" and together with the Senior Indenture, the "Indentures"), by and between the Agency and the Trustee. Definitions of certain capitalized terms used in this Official Statement are set forth in "APPENDIX A - SUMMARY OF CERTAIN PROVISIONS OF THE INDENTURES." This Official Statement contains brief descriptions of the 2006 Bonds, the Indentures, the Agency, the Temecula Public Financing Authority (the "Authority") and the Redevelopment Plan (as defined herein). Such descriptions do not purport to be comprehensive or definitive. All references in this Official Statement to documents are qualifIed m their entirety by reference to those documents, and references to the 2006 Bonds are qualified in their entirety by reference to the form of the 2006 Bonds included in the Indentures. Copies of the Indentures and other documents described in this Official Statement may be obtained from the Agency as described under the subheading "Additional Information" below. As indicated above, the Agency may issue Parity Debt secured under the Senior Indenture on a parity with the Series A Bonds and $28,030,000 aggregate prmcipal amount ofTemecula Redevelopment Project No. 1 2002 Tax Allocation Bonds issued on May 8, 2002 (the "2002 Bonds,") of which $27,050,000 aggregate principal amount remain outstanding as of October 1, 2006, and any such Parity Debt will be secured under the Senior Indenture on a senior basis to the SeriesB Bonds. The Agency may issue additional debt secured under the Series B Indenture on a parity with the Series B Bonds and any such additional subordinate debt will be secured under the Series B Indenture on a subordinate basis to the Series ABonds and 2002 Bonds. See "SECURITY FOR THE 2006 BONDS - Parity Debt." * Preliminary, subject to change. On the date of issuance of the 2006 Bonds, the Agency will sell the 2006 Bonds to the Authority, a joint exercise of powers authority formed pursuant to the provisions of Articles 1 through 4 (commencing with Section 6500) of Chapter 5, Division 7, Title 1 of the California Government Code, whose members consist of the Agency and the City ofTemecula (the "City"). The Authority in turn will sell the 2006 Bonds to the Underwriter. The Authority, the Agency and the Redevelopment Plan The Authority is a California joint powers authority, organized pursuant to a Joint Exercise of Powers Agreement, dated April 10, 2001 (the "JPA Agreement''), between the City and the Agency. The JP A Agreement was entered into pursuant to the JointExercise of Powers Act, Chapter 5 (commencing with Section 6500) of Division 7 of Title 1 of the Government Code of the State of California (the "Joint Powers Act"). The Authority is a separate entity constituting a public instrumentality of the State of California and was formed for the public purpose of assisting in financing and refinancing projects pursuant to the Joint Powers Act. The Authority has no responsibility whatsoever for repayment of the 2006 Bonds. On July 12, 1988, the County of Riverside (the "County'') (prior to the incorporation of the City), adopted the "County of Riverside Redevelopment Plan 1- 1988" by Ordinance No. 658. On December 1, 1989, the City was incorporated. All of the area within the County Redevelopment Plan was included within the boundaries of the CIty. The Agency was established on April 27, 1991, by the City Council (the "City Council") of the City by adoption of Ordinance No. 91-08 under the provisions of the Community Redevelopment Law, constituting Part 1 of Division 24 (commencing with Section 33000) of the California Health and Safety Code, as amended (the "Redevelopment Law"). The City Council at the same time declared itself to be the governing body of the Agency. The five members of the City Council serve as the governing body of the Agency and exercise all fights, powers, duties and privileges of the Agency. See "THE REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA" herein. The City Council of the City adopted Ordinance No. 91-11 on May 9, 1991, and Ordinance No. 91-15 on April 9, 1991, approving the County RedevelopmentPlan as the TemeculaRedevelopmentPlan No.1 (the "Redevelopment Plan") and transferring jurisdiction overthe Redevelopment Plan to the Agency. This transfer was effective July 1, 1991. The Temecula Redevelopment ProjectNo. 1, the area encompassed by the Redevelopment Plan (the "Project Area"), is primarily commercial and industrial in nature. It is generally located along Interstate 15 from the City's northern border with the City of Murrieta to the intersection of Highway 79 on the south. The Project Area encompasses approximately 1,635 acres. The Project Area includes the Promenade Mall site, Old Town and industrial and business park areas west of the freeway. See "THE REDEVELOPMENT PLAN" herein. The total assessed valuation of taxable property in the Project Area in Fiscal Year 2006-07 is approximately$I,424,918,991 greater than the aggregate adjusted assessed valuation inthe applicable base year. Assessed valuations in the Project Area are subject to numerous risks which could result in decreases from those reported for Fiscal Year 2006-07. See "RISK FACTORS" herein. Purpose orIssuance Proceeds from the sale of the 2006 Bonds will be used to (i) finance redevelopment activities within or of benefit to the Project Area; (ii) establish a Senior Subaccount within the Reserve Account for the Series ABonds all or a portion of which may be funded by a reserve surety for the Series ABonds (the "Series A Debt Service Reserve Surety Bond') in satisfaction of the Reserve Requirement for the Series A Bonds, (iii) establish a Subordinate Subaccount within the Reserve Account for the Series B Bonds in satisfaction of the Reserve Requirement for the Series B Bonds, and (iv) provide for the costs of issuing the 2006 Bonds, including the premium for the financial guaranty insurance policy and the Series A Debt Service Reserve Surety Bond. See "ESTIMATED SOURCES AND USES OF FUNDS" herein. 2 The 2006 Bonds The 2006 Bonds are being issued pursuant to the laws of the State of California (the "State"), including the provisions of the Redevelopment Law, Resolution No. RDA No. 06-_, adopted by the Agency on , 2006 (the "Resolution") and Resolution No. adopted by the Authority on , 2006, and the Indentures. See "THE 2006 BONDS" herein and "APPENDIX A - SUMMARY OF CERTAIN PROVISIONS OF THE INDENTURES" attached hereto. The 2006 Bonds will be issued in denominations of $5,000 each or integral multiples thereof. Interest on the Series A Bonds is payable on each February 1 and August 1, commencing on February 1, 2007, and interest on the Series B Bonds is payable on each June 15 and December 15, commencing on June 15,2007. Interest and principal on the 2006 Bonds are payable by the Trustee to DTC (as defined herein) which will be responsible for remitting such principal and interest to the Participants (as defined in Appendix H) which will in turn be responsible lor remitting such principal and interest to the Beneficial Owners (as defined in Appendix H) of the 2006 Bonds. No physical distribution of the 2006 Bonds will be made to the public initially. See "THE 2006 BONDS - Book-Entry and DTC" herein. Source of Payment for the Bonds The 2006 Bonds are special obligations of the Agency and are payable from and securedby a pledge of "Tax Increment Revenues' and amounts in certain mnds and accounts held under the Indentures. The term Tax Increment Revenues is defined in the Indentures as all taxes annually allocated and paid to the Agency with respect to the Project Area following the delivery of the 2006 Bonds pursuant to Article 6 of Chapter 6 (commencing with Section 33670) of the RedevelopmentLaw and Section 16 of Article XVI of the Constitution of the State of California (the "California Constitution") including all payments, subventions and reimbursements (if any) to the Agency specifically attributable to ad valorem taxes lost by reason of tax exemptions and tax rate limitations; but excluding (a) amounts of such taxes required to be deposited into the Low and Moderate Income HousingFund of the Agency in any Fiscal Year, pursuant to Section 33334.3 of the Redevelopment Law, (b) all amounts of such taxes required to be paid by the Agency, pursuant to any Pass-Through Agreement (to the extent that the payments thereunder are not subordinated to the Agency's obligation to repay the Bonds), and (c) the Business Inventory Tax Subvention. See "SECURITY FOR THE 2006 BONDS - Tax Increment Revenues" and "LIMITATIONS ON TAX INCREMENT REVENUES - Pass-Through Agreements; Other Contractual Obligations" herein. The Tax Increment Revenues are not subject to the pledge and lien of any indebtedness of the Agency other than the 2006 Bonds, the 2002 Bonds and any Parity Debt or any loans, bonds, notes, advances or indebtedness payable from Tax Increment Revenues on a parity with the Series B Bonds ("Additional Subordinate Debt") (collectively, the "Bonds") that may be issued in accordance with theIndentures, certain obligations to the 2002 Bond Insurer and the Bond Insurer, and certain other obligations which have been made or are by their terms subordinate to the payment of the Bonds. See "THE REDEVELOPMENT AGENCY OF THE CITY OFTEMECULA -Outstanding Indebtedness of the Agency" herein. The Bonds are not payable from, and are not secured by, any fonas of the Agency other than the Tax Increment Revenues, and amounts in certain funds and accounts specifically pledged therefore under the Indentures. See "SECURITY FOR THE 2006 BONDS" herein. Parity Debt The Agency may issue Parity Debt secured under the Senior Indenture on a parity with the Series ABonds and the 2002 Bonds and any such Parity Debt will be secured under the Senior Indenture on asenior basis to the Series B Bonds. The Agency may issue Additional Subordinate Debt secured under the Series B Indenture on a parity with the Series B Bonds and any such Additional Subordinate Debt will be secured under the Series B Indenture on a subordinate basis to the Series A Bonds and the 2002 Bonds. The Agency may issue or incur Paritx Debt or Additional Subordinate Debt subjectto certain specific conditions set forth in the Indentures. See 'SECURITY FOR THE 2006 Bonds - Parity Debt." 3 Bondowners' Risks Prospective investors should review this Official Statement and the Appendices hereto in their entirety and should consider certain risk factors associated with the purchase of the 2006 Bonds, some of which have been summarized in the section herein entitled "RISK FACTORS." Continuing Disclosure The Agency has covenanted, pursuant to a Continuing Disclosure Certificate executed on the date of delivery of the 2006 Bonds, for the benefit of Owners (as defined in the Indentures) and Beneficial Owners of the 2006 Bonds, to provide certain financial information and operating data related to the Agency by not later than eight months following the end of the Agency's Fiscal Year (the "Annual Report"), and to provide notices of the occurrence of certain enumerated events, if material. The Annual Report will be filed by the Agency with each Nationally Recogt!ized Municipal Securities Information Repository, and with the appropnate State information depository, If any. The notices of material events will be filed by the Agency with each Nationally Recognized Municipal Securities Information Repository or with the Municipal Securities Rulemaking Board (and with the appropriate State information depository, if any). The specific nature of the information to be contained in the Annual Report and any notices of material events is summarized below under the caption "CONTINUING DISCLOSURE." A complete copy of the Continuing Disclosure Certificate is set forth in "APPENDIX E - FORM OF CONTINUING DISCLOSURE CERTIFICATE." The covenants of the Agency in the Continuing Disclosure Certificate have been made in order to assist the underwriter of the 2006 Bonds in complying with S.E.C. Rule 15c2-12(b)(5) (the "Rule"). The Agency has no previous disclosure obligation under the Rule. Investment in the Series B Bonds, and, in the absence of the municipal gnaranty insurance policy, the Series A Bonds, involves risks that may not be appropriate for some investors. The scheduled payment of principal of and interest on the Series A Bonds when due will be insured by a municipal gnaranty insurance policy and will be payable from Tax Increment Revenues on a basis senior to that of the Series B Bonds. See "BOND INSURANCE FOR THE SERIES A BONDS." See the section of this Official Statement entitled "RISK FACTORS" for a discussion of certain risk factors which should be considered, in addition to the other matters set forth herein, in considering the investment quality of the 2006 Bonds. Tax Matters In the opinion of Quint & Thirnmig LLP, San Francisco, California, Bond Counsel, under existing law, and assuming compliance by the Agency with certain covenants in the Indentures, interest on the 2006 Bonds is excluded from gross income for federal income tax purposes and is not an item of tax preference for purposes of calculating the federal alternative minimum tax Imposed on individuals and corporations. In the further opinion of Bond Counsel, interest on the 2006 Bonds is exempt from State of California personal income taxes. See "TAX MATTERS" herein. Municipal Bond Insurance Payment of principal of and interest on the Series A Bonds as the same shall become due will become secured by a financial gnaranty insurance policy to be issued simultaneously with the issuance of the Series A Bonds by [INSURER]("INSURER"). See "THE [INSURER] INSURANCE POLICY" herein. Professionals Involved in the Offering The proceedings of the Agency in connection with the issuance of the 2006 Bonds are subject to the approval as to their legality of Quint & Thimmig LLP, San Francisco, California, Bond Counsel to the Agency. McFarlin & AndersonLLP, Lake Forest, California, is serving as Disclosure Counsel to the Agency forthe Bonds. Certain legal matters for the Agency will be passed upon for the Agency by Richards, Watson & Gershon, Los Angeles, California, Counsel to the Agency. HdL Companies is acting as Fiscal Consultant to the Agency. Fieldman, Rolapp & Associates is acting as Financial Advisor to the Agency. U.S. Bank National Association, Los Angeles, California, will act as the Trustee under the Indentures. 4 Additional Information This Official Statement speaks only as of its date, and the information contained herein is subject to change without notice. Copies of documents referred to herein are available from the Agency upon written request, c/o the Redevelopment Agency of the City of Temecula, 43200 Business Park Drive, Temecula, California 92590, Attention: Agency Secretary. The Agency may impose a charge for copying, mailing and handling expenses related to any request for documents. ESTIMATED SOURCES AND USES OF FUNDS The following table sets forth a summary of the sources and uses of funds associated with the issuance and sale of the 2006 Bonds. Uses ofFunds(1) Deposit into Subordinate Subaccount within the Series B Reserve Accountc2) Deposit into Improvement Funds Deposit to Costs of Issuance Funds(3) Deposit into Administrative Expense Fund Total Uses Series A Bonds Series B Bonds Total $ $ $ ( ) ( ) ( ) ( ) ( ) ( ) $ $ $ $ $ $ Sources of Funds Par Amount of Bonds Less: Net Original Issue Discount Less: Underwriter's Discount Total Sources $ $ $ (1) The Senior SubaCcOlmt Reserve Requirement will be provided through the Series A Debt Service Reserve Surety Bond. (2) Equal to the Series B Reserve Requirement as of the date of issuance of the Series B Bonds. (3) Includes, among other things, the fees and expenses of Bond COllllsel, Disclosure COlUlsel, the Financial Advisor, the rating agency, the Trustee, theprerniurn for Municipal Bond Insurance Policy, the Series ADebt Service Reserve Surety Bond prerniurn, and the cost of printing the Preliminary and final Official Statements. With respect to the Series A Bonds, the allocation to costs of issuance includes the premium for the Municipal Bond Insurance Policy and the Reserve AccOlmt Policy. Redevelopment Activities The Agency has determined to use 2006 Bonds proceeds to finance redevelopment activities within or of benefit to the Project Area. The activities anticipated to be financed with proceeds of the 2006 Bonds are portions of Phase I of a Civic Center project. Financed improvements may include portions of, among other things, (i) Old Town Parking Structure, consisting of a multi-level public parking structure that will accommodate a maximum of approximately 480 vehicles on the southerly end of an approximately 6.75 acre parcel at Mercedes Street and Main Street, (ii) a Civic Plaza on not more than one acre at Mercedes Street and Main Street, and (iii) street improvements on both sides of approximately 1,800 linear feet of Mercedes Street, including intersections, undergrounding of utilities ana streets cape, as well as other qualifying projects. Approximately 12,000 square feet of office space located in the structure comprising the parking structure are expected to be used partially by public entities and partially by private entities and the allocable share of the costs relating thereto will be provided from available sources and not proceeds of the 2006 Bonds. [CONFIRM]. 5 DEBT SERVICE SCHEDULE The following table represents the annual debt service for the 2006 Bonds (including mandatory sinking fund redemptions on their respective August land December 15 redemption dates, as applicable), assuming that there are no optional redemptions or mandatory redemptions. Period Ending 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 2037 2038 Total Series A Aggregate Debt Service Subordinate Series B Principal(l) Series A Bonds Debt Service Interest Series B Bonds Debt Service Total 2006 Bond Debt Service Principal(2) Interest (1) Principal is paid on August 1 of each year. (2) Principal is paid on December 15 of each year. 6 THE 2006 BONDS General Provisions The 2006 Bonds will be issued and sold in the initial aggregate principal amount of $17,340,000' for the Series A Bonds and $4,025,000' for the Series B Bonds. The 2006 Bonds will be delivered in registered form, without coupons, in authorized denominations of$5,000 or any integral muitifles thereof. Interest on the Series A Bonds is payable semi-annually on February 1 and August 1 0 each year, commencing February 1,2007, and interest on the Series B Bonds is payable semi-annually on June 15 and December 15 of each year, commencing June 15,2007 (each an "Interest Payment Date," as applicable), to the registered Owner thereof as of the close of business on the fifteenth (15th) calendar day of the month preceding each such Interest Payment Date, whether or not such fifteenth (15th) calendar day is a business day (eacli a "Record Date," as applicable). Principal of the Series A Bonds will be payable on August 1 in each of the years and in the principal amounts shown on the inside cover page hereof. Principal of the Series B Bonds will be payable on December 15 in each of the years and in the principal amounts shown on the inside cover page hereof. Interest on the 2006 Bonds is payable by check of the Trustee mailed by first class mail, postage prepaid, on each Interest Payment Date to the Owners of the 2006 Bonds at their respective addresses shown on the registration books kept by the Trustee as of the applicable Record Date; provided, however, that payment of interest to each registered Owner of $1,000,000 or more aggregate principal amount of 2006 Bonds may be made by wire transfer to an account in the United States of America as specified by such Owner in a written request filed with the Trustee prior to the applicable Record Date. Principal of and premium, if any, on the 2006 Bonds is payable in lawful money of the United States of America by check of the Trustee upon presentation and surrender thereof at the corporate trust office of the Trustee desiguated pursuant to the Indentures. The 2006 Bonds will be dated their date of issuance and will bear interest (calculated on the basis of a 360-day year comprised of twelve 30-day months) from the Interest Payment Date next preceding the date of authentication thereof, unless (i) a 2006 Bond is authenticated on or before an Interest Payment Date and after the close of business on the preceding applicable Record Date, in which event such 2006 Bond will bear interest from such Interest Payment Date, or (ii) a 2006 Bond is authenticated on or before the first applicable Record Date, in which event such 2006 Bond will bear interest from the date of issuance of the 2006 Bonds; or (c) if, as of the date of authentication of any 2006 Bond, interest thereon is in default, in which event such 2006 Bond shall bear interest from the date to which interest has previously been paid in full, payable on each Interest Payment Date. Any interest not paid when due or duly provided for on any Interest Payment Date shall be paid to the person in whose name the 2006 Bond is registered at the close of business on a special record date for the payment of such defaulted interest to be fixed by the Trustee. The Trustee shall give notice of such special record date to the Owner not less than 10 days prior thereto. Redem ption 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 maturing on or before August 1, 20---, shall not be subject to optional redemption prior to maturity. The Series A Bonds maturing on or after August 1, 20---, shall be subject to redemption in whole, or in part among maturities of the Series ABonds as shall be determined by the Agency, and in any case by lot within a maturity, at the option of the Agency, on any date on or after August 1,20 , from any available source of funds, at a redemption price (expressed as a percentage of the principal amount of the Series A Bonds to be redeemed) as follows, in each case together with accrued interest thereon to the redemption date. * Preliminary, subject to change. 7 Redemption Date August 1, 20_ through July 31, 20_ August 1, 20_ through July 31, 20_ August 1, 20_ and thereafter Redemption Price % No optional redemption of the 2006 Bonds may occur, however, unless all amounts owed to the 2006 Bond Insurer under the Financial Guaranty Agreement have been paid in full. Optional Redemption of Series B Bonds. The Series B Bonds maturing on or after December 15, 20---, shall be subject to redemption in whole or in part on any date at the Request of the Agency, among maturities as determined by the Agency, and in any case by lot within a maturity, on or after December 15, 20---, at the option of the Agency from any available source of funds, at a redemption price equal to one hundred percent (100%) of the principal amount thereof to be redeemed together with accrued interest thereon to the redemption date, plus a redemption premium (expressed as a percentage of the principal amount of the Series B Bonds to be redeemed), as set forth in the following table: Redemption Date December 15,20_ through December 14,20_ December 15,20_ through December 14,20_ December 15, 20 and thereafter Redemption Price % Mandatory Sinking Account Redemption of Series A Bonds. The Series A Term Bonds shall be subject to redemption in part by lot on August 1 in each of the years set forth in the following tables from Sinking Account payments made by the Agency pursuant to the Senior Indenture, at aredemption price equal to the principal amount thereofto be redeemed, together with accrued interest thereon to the redemption date, without premium, or in lieu thereof shall be purchased pursuant to the Senior Indenture, in the aggregate respective principal amounts and on the dates as set forth in the following table; provided, however, that if some but not all of the Series A Bonds to be redeemed pursuant to the optional redemption provisions of the Senior Indenture have been redeemed pursuant to the Senior Indenture, the total amount of all future Sinking Account payments with respect to such Series A Bonds shall be reduced by the aggregate principal amount of such Series A Bonds so redeemed, to be allocated among such Sinking Account payments in integral multiples of $5,000 as determined by the Agency (notice of which determination shall be given by the Agency to the Trustee). Series A Term Bonds Maturing August 1, 20_ Sinking Account Redemption Date (August 1) 20 20 20 20 20 20_ (maturity) Principal Amount To Be Redeemed or Purchased $ 8 Series A Term Bonds Maturing August 1, 20_ Sinking Account Redemption Date (August 1) 20 20 20 20 20 20_ (maturity) Series A Term Bonds Maturing August 1, 2038 Sinking Account Principal Amount Redemption Date To Be Redeemed (August 1) or Purchased 20 $ 20 20 20 20 2038 (maturity) Principal Amount To Be Redeemed or Purchased $ In lieu of redemption of any Series A Term Bonds pursuant to the preceding paragraph, amounts on deposit in the Special Fund (to the extent not required to be transferred to the Trustee or the trustee for any Parity Debt pursuant to any Parity Debt Instrument with respect to the applicable Tax Increment Calculation Year) established under the Senior Indenture may also be used and withdrawn by the Agency at any time for the purchase of Series A Term Bonds at public or private sale as and when and at such prices (including brokerage and other charges and including accrued interest) as the Agency may in its discretion determine. The par amount of any of the Series A Term Bonds so purchased by the Agency in any twelve-month period ending on June 15 in any year shall be credited towards and shall reduce the par amount of such Series A Term Bonds required to be redeemed pursuant to the Senior Indenture on August 1 in such year, upon the presentation of the purchased Series A Bonds to the Trustee on or prior to June 15 in any year. Mandatory Sinking Account Redemption of Series B Bonds. The Series B Bonds maturing on December 15,20_ and December 15,2038 (the "Series B TermBonds''), shall also be subject to redemption in whole, or in part by lot, beginning on December 15, 20_ and December 15, 20---, respectively, and on December 15 in each year thereafter as set forth in the following tables, from Sinking Account payments made by the Agency pursuant to the Series B Indenture, at a redemption price equal to the principal amount thereof to be redeemed, together with accrued interest thereon to the redemption date, without premium, or in lieu thereof shall be purchased pursuant to the Series B Indenture, in the aggregate respective principal amounts and on the respective dates as set forth in the following tables; provided, however, that if some but not all of such Series B Bonds have been redeemed pursuant to the optional redemption provisions of the Series B Indenture, the total amount of all future Sinking Account payments pursuant to the Series B Indenture shall be reduced by the aggregate principal amount of such Series B Bonds so redeemed, to be allocated among such Sinking Account payments in integral multiples of$5,000 as determined by the Agency (written notice of which determination shall be given by the Agency to the Trustee). 9 Series B Bonds Maturing December 15,20_ Sinking Account Redemption Date (December 15) 20 20 20_ (maturity) Principal Amount To Be Redeemed $ Series B Bonds Maturing December 15,2038 Sinking Account Redemption Date (December 15) 20 20 2038 (maturity) Principal Amount To Be Redeemed $ In lieu of sinking fund redemption of Series B Term Bonds, amounts on deposit in the Special Fund established under the Series B Indenture (to the extent not required to be transferred to the Trustee or the trustee for any Additional Subordinate Debt pursuant to any Additional Subordinate Debt Instrument with respect to the applicable Tax Increment Calculation Year) may also be used and withdrawn by the Agency at any time prior to the selection of Series B Bonds for redemption for the purchase of such Series B Bonds atpublic or private sale as and when and at such prices (including brokerage and other charges and including accrued interest), as the Agencymay in its discretion determine. The par amount of any of such Series B TermBonds so purchased by the Agency in any twelve-month period ending on November 1 in any year shall be credited towards and shall reduce the par amount of the Series B Term Bonds required to be redeemed on December 15 in such year, upon the presentation of the purchased Series B Bonds to the Trustee on or prior to November 1 in any year. Notice of Redemption. The Trustee on behalf and at the expense of the Agency shall mail (by first class mail, postage prepaid) notice of any redemption at least thirty (30) but not more than sixty (60) days prior to the redemption date, to (i) the Owners of any 2006 Bonds designated for redemption at their respective addresses appearing on the Registration Books, and (ii) the Securities Depositories (as defined in the Indentures) and to one or more Information Services (as defined in the Indentures) designated by the Agency to the Trustee; provided, however, that such mailing shall not be a condition precedent to such redemption and neither failure to receive any such notice nor any defect in any notice given shall affect the validity of the proceedings for the redemption of such 2006 Bonds or the cessation of the accrual of interest thereon. Such notice shall state the redemption date and the redemption price, shall designate the CUSIP" numbers of the 2006 Bonds to be redeemed, and shall require that such 2006 Bonds be then surrendered at the office of the Trustee for redemption at the redemption price, giving notice also that further interest on such 2006 Bonds will not accrue from and after the redemption date. Notwithstandingthe foregoing, in the case of any optional redemption of the 2006 Bonds, the notice of redemption shall state that the redemption is conditioned upon receipt by the Trustee of sufficientmoneys to redeem the 2006 Bonds on the anticipated redemption date, and that the optional redemption shall not occur if by no later than the scheduled redemption date sufficient moneys to redeem the 2006 Bonds have not been deposited with the Trustee. In the event that the Trustee does not receive sufficient funds by the scheduled optional redemption date to so redeem the 2006Bonds to be optionally redeemed, the Trustee shall send written notice to the Owners of the 2006 Bonds, to the Securities Depositories and to one or more of the Information Services to the effect that the redemption did not occur as anticipated, and the 2006 Bonds for which notice of optional redemption was given shall remain Outstanding for all purposes of each Indenture. 10 Manner of Redemption. Whenever provision is made in the Indentures for the redemption of less than all of the 2006 Bonds, the Agency in its discretion shall determine the maturities to be redeemed by written notice to the Trustee and the Trustee shall select the 2006 Bonds within a maturity to be redeemed by lot in any manner which the Trustee, in its sole discretion, deems appropriate. Partial Redemption of 2006 Bonds. In the event only a portion of any 2006 Bond is called for redemption, then upon surrender of such 2006 Bond the Agency shall execute and the Trustee shall authenticate and deliver to the Owner thereof, at the expense of the Agency, a new 2006 Bond or 2006 Bonds of the same interest rate and maturity, of authorized denominations, in aggregate principal amount equal to the unredeemed portion of the 2006 Bond to be redeemed. Effect of Redemption. From and after the date fixed for redemption, if funds available for the payment of the redemption price of and interest on the 2006 Bonds so called for redemption shall have been duly deposited with the Trustee, such 2006 Bonds so called shall cease to be entitled to any benefit under the Indentures other than the right to receive payment of the redemption price and accrued interest to the redemption date, and no interest shall accrue thereon from and after the redemption date specified in such notice. 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 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. See APPENDIX H - "BOOK-ENTRY SYSTEM." So long as Cede & Co. is the registered Owner ofthe2006 Bonds, references in this Official Statement to the holders or owners or registered Owners or Owners ofthe2006 Bonds shall mean Cede & Co. and shall not mean the Beneficial Owners ofthe2006Bonds. 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 Agency determines that DTC shall no longer act as securities depository, and delivers a written certificate to the Trustee to that effect, then the Agency will discontinue the Book-Entry System with DTC for the 2006 Bonds. If the Agency determines to replace DTC with another qualified securities depository, the Agency 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 of the Indentures. If the Agency 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 Trustee identified in the Indentures, and (iii) the 2006 Bonds will be transferable and exchangeable as provided in the Indentures. SECURITY FOR THE 2006 BONDS Tax Increment Revenues Tax Allocations. The Redevelopment Law provides a means for financing redevelopment projects based upon an allocation of taxes collected within a project area. The taxable valuation of a project area last equalized prior to adoption of the redevelopment plan, or base roll, is established in the base year. Thereafter, except for any period during which the taxable valuation drops below the base year level, the taxing bodies receive the taxes produced by the levy of the then-current tax rate upon the base roll. Taxes collected upon any increase in taxable valuation over the base roll (with the exception of taxes derived from 11 increases in the tax rate imposed by taxing agencies to support new bonded indebtedness) are allocated to the redevelopment agency and may be pledged to the repayment of any indebtedness incurred in financing or refinancing redevelopment. Redevelopment agencies themselves have no authority to levy property taxes and must look exclusively to such allocation of taxes. Currently, such taxes are collected by the County and paid to the affected entities. As provided in the Redevelopment Plan and pursuant to Article 6 of Chapter 6 of the Redevelopment Law and Section 160f Article XVI of the State Constitution, taxes levied upon taxable property in the project area each year by or for the benefit of the State, cities, counties, districts or other public corporations (collectively, the "Taxing Agencies"), for fiscal years beginning after the effective date of the respective redevelopment plan, will be divided as follows: (1) To taxing agencies: The portion equal to the amount of those taxes which would have been produced by the current tax rate, applied to the taxable valuation of such property in the redevelopment project area as last equalized prior to the establishment of the redevelopment project, or base roll, is paid into the funds of those respective taxing agencies as taxes by or for said taxing agencies; and (2) To the Agency: The portion of said levied taxes each year in excess of the amount referred to in (1) above is allocated to, and when collected, is paid into the Special Fund of the Agency;provided that the portion of the taxes identified in (1) above which are attributable to a tax rate levied by a taxing agency to pay indebtedness approved by the voters of that taxing agency on or after January 1, 1989, shall be allocated to, and when collected shall be paid into, the fund of such taxing agency. Such excess is referred to as "Tax Increment Revenues." The Agency has entered into various pass-through agreements and other contractual obligations whereby it has committed portions of the taxes that are allocated to the Agency as described in the preceding paragraph (2). The Tax Increment Revenues pledged to the payment of the 2006 Bonds under the Indentures specifically exclude the taxes so committed, and such amounts will not be available to make payments on the 2006 Bonds. See "LIMITATIONS ON TAX INCREMENT REVENUES - Pass-Through Agreements; Other Contractual Obligations"for a discussion of such agreements and other obligations of the Agency, and "SECURITY FOR THE 2006BONDS - Pledge of Tax IncrementRevenues"for the specific exclusions from the taxes pledged by the Agency under the Indentures to the repayment of the Bonds. Housing Set-Aside Amounts. The Redevelopment Law requires generally that, unless a specified finding is made, redevelopment agencies set aside 20% of all tax increment revenues (as described above) derived from redevelopment project areas into a low and moderate income housing fund (the "Low and Moderate Income Housing Fund''), to be used for the purpose of increasing, improving and! or preserving the supply of low and moderate income housing. Sections 33334.2 and 33334.6 of the Redevelopment Law dictate the low and moderate income housing set-aside requirement for the redevelopment project. See "LIMITATIONS ON T AX INCREMENT REVENUES - Low and Moderate Income Housing" herein. The pledge of Tax Increment Revenues under the Indentures does not include any portion of the Tax Increment Revenues arising from the Redevelopment Plan that is required to be deposited by the Agency to the Low and Moderate Income Housing Fund. Pledge of Tax Increment Revenues Pursuantto each Indenture, all right, title and interest of the Agency in Tax Increment Revenues paid to the Agency under the State Constitution, the Redevelopment Law and other applicable laws, are assigned and pledged to secure the payment of principal of and interest on the 2006 Bonds; provided, however, that the Series B Bonds are subordinate to the pledge of and lien on the TaxI ncrement Revenues under the Senior Indenture and under the Financial GuarantyAgreementand the 2006 Financial GuarantyAgreement (as such terms are defined in the Senior Indenture). Each Indenture defines the term "Tax Increment Revenues" to mean all taxes annually allocated and paid to the Agency with respect to the Project Area pursuant to Article 6 of Chapter 6 (commencing with Section 33670) of the Redevelopment Law and Section 16 of ArticleXVI of the State Constitution including all payments, subventions and reimbursements (if any) to the Agencyspecifically attributable to ad valorem taxes lost byreason of tax exemptions and tax rate limitations; but excluding (a) amounts of such taxes required to be deposited into the Low and Moderate IncomeHousing Fund of the Agency in any fiscal year pursuant to Section 33334.3 of the Redevelopment Law to the extent 12 not eligible under the Redevelopment Law for the payment of debt service on the 2006 Bonds, (b) all amounts of such taxes required to be paid by the Agency pursuant to any Pass-Through Agreement (to the extent that the payments thereunder are not subordinated to the Agency's obligation to repay the 2006 Bonds), and (c) the Business Inventory Tax Subvention. See "LIMITATIONS ON TAX INCREMENT REVENUES - Pass-Through Agreements; Other Contractual Obligations" herein for a discussion of the contractual and other obligations of the Agency giving rise to the exclusions described in the preceding clause (b). See also "LIMITATIONS ON TAX INCREMENT REVENUES - Redevelopment Plan Lirnitations"herein for certain other constraints on the availability of Tax Increment Revenues to pay debt service on the 2006 Bonds. Except as may be otherwise provided in any Supplemental Indenture (as defined in the Indentures), the Agency is not obligated to transfer to the Trustee, for deposit in either Special Fund with respect to any Tax Increment Calculation Year, an amount of Tax Increment Revenues which, together with other available amounts in each Special Fund, exceeds the amounts required with respect to such Tax Increment Calculation Year pursuant to the Indentures. After the amount on deposit in each Special Fund equals the aggregate amount required to be deposited into the applicable Interest Account, the Principal Account, the Sinking Account and the Reserve Account with respect to such Tax Increment Calculation Year pursuant to each Indenture, all additional Tax Increment Revenues received with respect to such Tax Increment Calculation Year shall be released from the pledge and lien of the Indentures and may be used for any lawful purpose of the Agency. The Agency has no independent power to levy and collect property taxes, and any property tax limitation, legislative measure, voter initiative or provision of additional sources of income to taxing agencies having the effect of reducing the property tax rate or collections, could reduce the amount ofT ax Increment Revenues that would otherwise be available to pay the principal of, and interest on, the 2006 Bonds. Likewise, broadened property tax exemptions could have a similar effect. See "RISK FACTORS" herein. Limited Obligations THEPRINCIP AL OF AND INTEREST AND PREMIUM, IF ANY, ON THE 2006 BONDS ARE PAYABLE SOLELY FROM TAX INCREMENT REVENUES AND FROM AMOUNTS IN CERTAIN FUNDS AND ACCOUNTS PLEDGED THEREFORE UNDER AND PURSUANT TO THE INDENTURES. THE 2006 BONDS ARE NOT A DEBT OF THE CITY, OR THE STATE OR ANY POLITICAL SUBDIVISION OF THE STATE (OTHER THAN THE AGENCY TO THE LIMITED EXTENT SET FORTHIN THE INDENTURES), AND NEITHER THE CITY NOR THE STATE OR ANY OF ITS POLITICAL SUBDIVISIONS (OTHER THAN THE AGENCY) IS LIABLE THEREFOR. THE 2006 BONDS DO NOT CONSTITUTE AN INDEBTEDNESS WITHIN THE MEANING OF ANY CONSTITUTIONAL OR STATUTORY DEBT LIMIT OR RESTRICTION. NEITHER THE MEMBERS OF THE AGENCY NOR ANY PERSON RESPONSIBLE FOR THE EXECUTION OF THE 2006 BONDS IS LIABLE PERSONALLY FOR THE 2006 BONDS BY REASON OF THE ISSUANCE THEREOF. Application of Tax Increment Revenues Under each Indenture there is established a special fund known as the "Special Fund,"which is held by the Agency. The Agency is required under the Senior Indenture to transfer all of the Tax Increment Revenues received with respect to any Tax Increment Calculation Year (August 2 in any year to the next succeeding August 1) to the Special Fund promptly upon receipt thereof by the Agency; provided, that the Agency will not be obligated to deposit in the Special Fund with respect to any Tax Increment Calculation Year an amount of Tax Increment Revenues which, together with other available amounts then in the Special Fund, exceeds the amounts required to be transferred to the Trustee for deposit in the applicable Interest Account, Principal Account, Sinking Account, Reserve Account and the Redemption Account with respect to any Tax Increment Calculation Year as described below. The Agency is required under the Series B Indenture to transfer all of the Tax Increment Revenues received with respect to any Tax Increment Calculation Year after satisfaction of the requirements of the Senior Indenture and any amounts due under the Financial Guaranty Agreement and the 2006 Financial Guaranty Agreement, to the Special Fund promptly upon receipt thereof by the Agency; provided, that the Agency will not be obligated to deposit in the Special Fund with respect to any Tax Increment Calculation Year an amount of Tax Increment Revenues which, together with other available amounts then in the Special Fund, exceeds the amounts required to be 13 transferred to the Trustee for depositin the applicable Interest Account, Principal Account, Sinking Account, Reserve Account and the Redemption Account with respect to any Tax Increment Calculation Year as described below. After the amount on deposit in the Special Fund equals the aggregate amount required to be deposited into the applicable Interest Account, the Principal Account, the Sinking Account, the Reserve Account and the Redemption Account with respect to such Tax Increment Calculation Year as described below, all additional Tax Increment Revenues received withrespectto a Tax Increment Calculation Year will be released from the pledge and lien of the Indentures and may be used for any lawful purpose of the Agency. Prior to the payment in full of principal of and interest and redemption premium (if any) on the Bonds and the payment in full of all other amounts payable under the Indentures and under any Parity Debt instrument, Additional Subordinate Debt instrument, any resolution, indenture of trust, trust agreement or other instrument authorizing the issuance and! or execution and delivery of any Parity Debt (collectively, a "Parity DebtInstrument''), and under any Additional Subordinate Debt instrument, any resolution, indenture of trust, trust agreement or other instrument authorizing the issuance and! or execution and delivery of any Additional Subordinate Debt (collectively, an "Additional Subordinate DebtInstrument''), the Agency will not have any beneficial right or interest in the moneys on deposit in the Special Funds, except only as provided in the Indentures and in any Parity Debt Instruments or Additional Subordinate Debt Instruments, and such moneys will be used and applied as set forth in the Indentures and in any Parity Debt Instruments and any Additional Subordinate Debt Instruments. Under each Indenture there is established a trust fund known as the "Debt Service Fund," which is held by the Trustee in trust. Moneys in each Special Fund are required to be transferred by the Agency to the Trustee in the following amounts, at the following times, for deposit by the Trustee in the following respective accounts within each Debt Service Fund, which are held by the Trustee, and in the following order of priority, provided, as referenced above that the deposits to the Special Fund for the Series B Bonds will not be made, and therefore the deposits to theAccounts relating to the Series B Bonds will not be made until after deposit to theSpecialFundforthe SeriesA Bonds, the Special Fundfor the 2002Bonds and the Special Fundfor any Parity Debt sufficient to satisfy all of the deposits to the Accountsfor the Series A Bonds, the 2002 Bonds and any Parity Debt have been made for the applicable Tax] ncrement Calculation Year of the Series A Bonds, the 2002 Bonds and any such Parity Debt and after satisfaction of any amounts due under the Financial Guaranty Agreement relating to the 2002 Bonds and the 2006Financial Guaranty Agreement Interest Account On or before each date on which interest is payable on the applicable Bonds, the Agency will withdraw from the applicable Special Fund and transfer to the Trustee for deposit in the applicable Interest Account an amount which, when added to the amount then on deposit in the applicable Interest Account, will be equal to the aggregate amount of the interest becoming due and payable on the Outstanding Bonds on such Interest Payment Date. All moneys in the applicable Interest Account are required to be used and withdrawn by the Trustee solely for the purpose of paying the interest on the applicable Bonds as it becomes due and payable (including accrued interest on any Bonds purchased or redeemed prior to maturity pursuant to the Indentures). Principal Account. On or before each date on which principal of the applicable Bonds becomes due and payable at maturity, the Agency will withdraw from the applicable Special Fund and transfer to the Trustee for deposit in the applicable Principal Account an amount which, when added to the amount then on deposit in the applicable Principal Account, will be equal to the amount of the principal coming due and payable on such date on the applicable Outstanding Bonds. All moneys in the applicable Principal Account are required to be used and withdrawn by the Trustee solely for the purpose of paying the principal on the applicable Bonds upon the maturity thereof. Sinking Account. On or before each date on which any Outstanding Term Bonds are subject to mandatory sinking account redemption, the Agency will withdraw from the applicable Special Fund and transfer to the Trustee for deposit in the applicable Sinking Account an amount which, when added to the amount then contained in the applicable Sinking Account, will be equal to the aggregate principal amount of the applicable Term Bonds subject to mandatory Sinking Account redemption on such date. All moneys on deposit in the applicable Sinking Account are required to be used and withdrawn by the Trustee for the sole purpose of redeeming or purchasing (in lieu of redemption) Term Bonds. 14 Reserve Account. With respect to the Series ABonds, the 2002 Bonds and any Parity Debt, a separate Reserve Account shall be established for each such Series of Bonds. In the event that the amount on deposit in the applicable Reserve Account at any time becomes less than the applicable Reserve Requirement, the Trustee upon receipt of actual knowledge will promptly notify the Agency of such fact. Promptly upon receipt of any such notice, the Agency is obligated to transfer to the Trustee from the applicable Special Fund an amount sufficient to maintain the applicable Reserve Requirement on deposit in the applicable Reserve Account. Amounts in the applicable Reserve Account shall be used and withdrawn by the Trustee for the purpose of making transfers to the applicable Interest Account, the Principal Account and the Sinking Account, in such order of priority, on any date which the principal of or interest on the applicable Bonds becomes due and payable in the event of any deficiency at any time in any of such accounts on or before each applicable Interest Payment Date or at any time for the retirement of all the applicable Bonds then Outstanding. So long as the Agency is not in default under the Indentures, any amount in the applicable Reserve Account in excess of the applicable Reserve Requirement preceding each applicable Interest Payment Date will be withdrawn from the applicable Reserve Account by the Trustee and deposited in the applicable Interest Account on or before each applicable Interest Payment Date. The Agency reserves the right in the Indentures to substitute, at any time and from time to time, a Qualified Reserve Account Credit Instrument, in lieu of or in substitution for or in place of all or any portion of the moneys then constituting the Reserve Requirement, under the terms of which the Trustee is unconditionally entitled to withdraw amounts when required for the purposes of the Indentures. Upon deposit by the Agency with the Trustee of any such Qualified Reserve Account Credit Instrument, the Trustee will withdraw from the Reserve Account and transfer to the Agency free and clear of the lien of each Indenture moneys in an amount equal to the maximum limits or principal, as applicable, of such Qualified Reserve Account Credit Instrument. "Qualified Reserve Account Credit Instrument" is defined in the Indentures to mean (i) with respect to the Series ABonds, the Series A Debt Service Reserve Surety Bond relating thereto, (ii) with respect to the 2002 Bonds means the Debt Service Reserve Surety Bond relating thereto (the "2002 Bonds Debt Service Reserve Surety Bond''), and (iii) an irrevocable standby or direct-pay letter of credit or surety bond issued by a commercial bank or insurance company and deposited with the Trustee, provided that all of the following requirements are met: (a) the long-term credit rating or claims paying ability of such bank or insurance company is in the highest rating category by Standard & Poor's Rating Group ("S&P'') and Moody's Investors Services and, if rated by A.M. Best & Company, also rated in the highest category by A.M. Best & Company; (b) such letter of credit or surety bond has a term of at least twelve (12) months; (c) such letter of credit or surety bond has a stated amount at least equal to the portion of the Reserve Requirement with respect to which funds are proposed to be released pursuant to theIndentures; and (d) the Trustee is authorized pursuant to the terms of such letter of credit or surety bond to draw thereunder an amount equal to any deficiencies which may exist from time to time in the Interest Account, the Principal Account or the Sinking Account for the purpose of making payments required pursuant to the Indentures. The Reserve Requirement with respect to the SeriesA Bonds will initially be satisfiedwith the Series A Debt Service Reserve Surety Bond provided by [INSURER). See "Reserve Account- [INSURER} Series A Debt Service Reserve Surety Bond" below. The Reserve Requirement with respect to the Series B Bonds will initially be satisfied with a portion of the proceeds of the Series B Bonds. The Series A Debt Service Reserve Surety Bond may only be drawn for payments with respect to the Series A Bonds and the 2002 Bonds Debt Service Reserve Surety Bond may only be drawn for payments with respect to the 2002 Bonds. See" - Reserve Account" below. Redemption Account On or before each date on which Bonds are to be redeemed pursuant to optional redemption, the Agency will withdraw from the applicable Special Fund and transfer to the Trustee for deposit in the applicable Redemption Account an amount required to pay the principal of and premium, if any, on the Bonds to be redeemed on such date, taking into account any funds then on deposit in the applicable Redemption Account. All moneys in such Redemption Account are required to be used and withdrawn by the Trustee solely for the purpose of paying the principal of and premium, if any, on the Bonds to be redeemed pursuant to optional redemption on the respective dates set for such redemption. 15 Reserve Account Pursuant to the Senior Indenture, a reserve account has been established and is held by the Trustee in trust for the benefit of the Agency and the registered owners of the Series A Bonds and a reserve account has been established and is held by the Trustee in trust for the benefit of the Agency and the registered owners of the 2002 Bonds, and pursuant to the Series B Indenture a reserve account (each a "Reserve Account") has been established and is held by the Trustee in trust for the benefit of the Agency and the registered Owners of the Series B Bonds and any Additional Subordinate Debt. The amount on deposit in each Reserve Account is required to be maintained at an amount equal to the applicable Reserve Requirement. The term "Reserve Requirement" with respect to the Series A Bonds means, as of the date of any calculation by the Agency, the least of (a) Maximum Annual Debt Service with respect to the Series A Bonds, (b) one hundred twenty-five percent (125%) of average Annual Debt Service with respect to the Series ABonds, or (c) ten percent (10%) of the initial principal amount of the Series ABonds. For purposes of the preceding sentence, the terms "Maximum Annual Debt Service" and "Annual Debt Service" shall only include the Series A Bonds and not all Bonds outstanding. The term "Reserve Requirement" with respect to the Series B Bonds means, as of the date of any calculation by the Agency, (i) the least of (a) Maximum Annual Debt Service - Reserve Requirement, or (b) one hundred twenty-five percent (125%) of average Annual Debt Service - Reserve Requirement, or (c) ten percent (10%) of the initial principal amount of the 2006 Bonds and the 2006 Senior Bonds; less (ii) the Reserve Requirement ( as defined in the Senior Indenture) applicable to the 2006 Senior Bonds. For purposes of the foregoing, "Annual Debt Service - Reserve Requirement" means, for each Tax Increment Calculation Year, the sum of (a) the interest payable on the Outstanding Series B Bonds and Series A Bonds in such Tax Increment Calculation Year, and (b) the principal amount of the Outstanding Series B Bonds and Series A Bonds scheduled to be paid in such Tax Increment Calculation Year upon the maturity or mandatory sinking account redemption thereof. For purposes of the foregoing, "Maximum Annual Debt Service - Reserve Requirement" means, as of the date of calculation, the largest amount obtained by totaling, for the current or any future Tax Increment Calculation Year, the sum of (a) the amount of interest payable on the Series B Bonds and the Series A Bonds in such Tax Increment Calculation Year, assuming that principal of each thereof is paid as scheduled and that any mandatory sinking fund payments are made as scheduled, and (b) the amount of principal payable on the Series B Bonds and the Series A Bonds in such Tax Increment Calculation Year, including any principal required to be prepaid by operation of mandatory sinking fund payments. So long as the applicable Reserve Requirement shall at any time be maintained in the applicable Reserve Account in the form of a combination of cash and a Qualified Reserve Account Credit Instrument, the Trustee shall apply the amount of such cash to make any payment required to be made from the applicable Reserve Account before the Trustee shall draw any moneys under the applicable Qualified Reserve Account Credit Instrument for such purpose. In the event that the Trustee shall at any time draw funds under the applicable Qualified Reserve Account CreditInstrument to make any payment then required to be made from the applicable Reserve Account, the Tax Increment Revenues thereafter received by the Trustee, to the extent remaining after making the other deposits (if any) then required to be made to the Interest Account, Principal Account and Sinking Account pursuant to the Special Fund provisions of the Indentures, shall be used to reinstate the applicable Qualified Reserve Account Credit Instrument. If there is more than one Qualified Reserve Account Credit Instruments held in the applicable Reserve Account, any draw or reinstatement shall be made upon them pro rata. TheReserveRequirementwith respect to theSeriesA Bonds will initially besatisfiedwith the Series A Debt Service Reserve Surety Bond provided by [INSURER). See "ReserveAccount - [INSURER} Series A Debt Service Reserve Surety Bond" below. The Reserve Requirement with respect to the Series B Bonds will initially be satisfied with a portion of the proceeds of the Series B Bonds. The Series A Debt Service ReserveSurety Bond may only be drawnfor payments with respect to the Series A Bonds and the 2002 Bonds Debt Service Reserve Surety Bondmay only be drawn for payments with respect to the 2002 Bonds. Each Debt Service Reserve Surety Bond is sized in an amount equal to the applicable Reserve Requirement. {INSURER! SeriesA Debt Service Reserve Surety Bond Application has been made to [INSURER] for a commitment to issue a surety bond (the "Series A Debt Service Reserve Surety Bond") with respect to the Series ABonds. The Series A Debt Service Reserve Surety Bond will provide that upon notice from the Trustee to [INSURER] to the effect that insufficient amounts are on deposit in the Debt Service Fund to pay 16 the principal of (at maturity or pursuant to mandatory redemption requirements) and interest on the Series ABonds, the Agency will promptly deposit with the Trustee an amount sufficient to pay the principal of and interest on the Series A Bonds or the available amount of the Series A Debt Service Reserve Surety Bond, whichever is less. Upon the later of: (i) three (3) days after receipt by the Agency of a Demand for Payment in the form attached to the Series A Debt Service Reserve Surety Bond, duly executed by the Trustee; or (ii) the payment date of the Series ABonds as specified in the Demand for Payment presented by the Trustee to [INSURER], [INSURER] will make a deposit of funds in an account with , in , , or its successor, sufficient for the payment to the Trustee, of amounts which are then due to the Trustee (as specified in the Demand for Payment) subject to the Surety Bond Coverage. The available amount of the Series A Debt Service Reserve Surety Bond is the initial face amount of the Series ADebt Service Reserve Surety Bond less the amount of any previous deposits by [INSURER] with the Trustee which have not beenreimbursed by the Agency. The Agency and [INSURER] have entered into the 2006 Financial Guaranty Agreement (the "2006 Financial Guaranty Agreement"). Pursuant to the 2006 Financial Guaranty Agreement, the Agency is required to reimburse [INSURER], within one year of any deposit, the amount of such deposit made by [INSURER] with the Trustee under the Series A Debt Service Reserve Surety Bond. Such reimbursement shall be made only after all required deposits to the Debt Service Fund with respect to the Series A Bonds have been made. Although the Series A Bonds are on a parity with the 2002 Bonds, the Series ADebt Service Reserve Surety Bond may only be drawn for payments with respect to the Series A Bonds and the 2002 Bonds Debt Service Reserve Surety Bond may only be drawn for payments with respect to the 2002 Bonds. The initial amount of the Series A Debt Service Reserve Surety Bond is an amount equal to the Reserve Requirement with respect to the Series A Bonds. Under the terms of the 2006 Financial Guaranty Agreement, the Agency is required to reimburse [INSURER], with interest, until the face amount of the Series A Debt Service Reserve Surety Bond is reinstated before any deposit is made to the Agency. No optional redemption of Series A Bonds may be made until all amounts owed by the Agency to [INSURER] have been paid in full. The Series A Debt Service Reserve Surety Bond will be held by the Trustee in the applicable Reserve Account and is provided as an alternative to the Agency depositing funds equal to the Series A Debt Service Requirement for outstanding Series A Bonds. The Series A Debt Service Reserve Surety Bond will be issued in the face amount equal to the Reserve Requirement for the Series A Bonds and the premium therefor will be fullypaid by the Agency at the time of delivery of the Series A Bonds. County Payment of Tax Increment The County's administrative practice is to pay to the Agency property tax payments at 100% of the Agency's share of levied amounts, subject to any tax sharing agreement with the County. Consequently, delinquent property taxes do not impact the Agency's tax increment revenues. The Riverside County Treasurer-Tax Collectorremits tax increment revenues to the Agency in periodic payments each fiscal year. If any tax or assessment which was distributed to the Agency is subsequently changed by correction, cancellation or refund, a pro rata adjustment for the amount of the change is made on the records of the Treasurer and Auditor of the County. Such adjustment for a decrease in the tax or assessment is treated by the County as an interest-free offset against future payments of tax levies to the Agency. The foregoing payment description is an administrative practice of the County that could be subjectto change. While the current administrative practice continues in existence and is carried out as described above, the County's administrative practice may help protect the Owners of the Bonds from the risk of delinquencies in ad valorem taxes. 17 Parity Debt Series A Bonds Parity Debt. Pursuantto the Senior Indenture, in addition to the Series A Bonds and the 2002 Bonds, the Agency may issue or incur Parity Debt payable from Tax Increment Revenues on a parity with the Series A Bonds and the 2002 Bonds in such principal amount as will be determined by the Agency. The Agency may issue or incur any such Parity Debt subject to the following specific conditions: (a) No Event of Default, as defined in the Senior Indenture, shall have occurred and be continuing, and the Agency shall otherwise be in compliance with all covenants set forth in the Senior Indenture. (b) Subject to paragraph (d) below, the Tax Increment Revenues for the then current Fiscal Year (based on the assessed valuation of property in the Project Area as evidenced in a written document from an appropriate official of the County) plus, at the option of the Agency, the Additional Allowance shall be at least equal to one hundred thirty percent (130%) of the Maximum Annual Debt Service on the Bonds (other than the Series B Bonds and any Additional Subordinate Debt) and such new Parity Debt. (c) Subject to paragraph (d) below, the issuance of such Parity Debt shall not cause the Agency to exceed any applicable Plan Limitations (as defined in the Indentures). Without limiting the generality of the foregoing, the Agency shall not issue or execute and deliver any Parity Debt in the event and to the extent that either (i) the sum of the aggregate amount of debt service on all outstanding obligations of the Agency payable from Tax Increment Revenues, including such Parity Debt, exceeds the aggregate amount of Tax Increment Revenues which are eligible to be allocated and paid to the Agency while such obligations remain outstanding, or (ii) the aggregate principal amount of all outstanding obligations of the Agency, including such Parity Debt, exceeds any applicable limit in the Redevelopment Plan on the aggregate principal amount of indebtedness which the Agency is permitted to have outstanding at anyone time. (d) In computing the Maximum Annual Debt Service on the Series A Bonds, the 2002 Bonds and any Parity Debt for purposes of paragraph (b) above, and the debt service for purposes of paragraph (c) above, if interest on any Bonds (other than the Series B Bonds or Additional Subordinate Debt) is payable at a variable rate or is otherwise incapable of determination, (A) if the Agency has entered into a variable to fixed swap arrangementwith respect to such Bonds (other than the Series B Bonds or any Additional Subordinate Debt) the term of which extends for the term of such Bonds (other than the Series B Bonds or Additional Subordinate Debt) and payments by the counterparty on the swap arrangement are guaranteed or insured by an entity whose unsecured debt obligations are rated in the highest rating category by Moody's and S&P, the maximum annual debt service due by the Agency under the swap arrangement shall be used rather than the maximum annual debt service on such Bonds (other than the Series B Bonds and any Additional Subordinate Debt), or (B) the Bonds (other than the Series B Bonds and any Additional Subordinate Debt) shall be assumed to bear interest at a fixed rate equal to the average of the daily interest rate on such Bonds (other than the Series B Bonds and any Additional Subordinate Debt) during the three-year period preceding the first day of the month in which the determination is made (and, if such Bonds (other than the Series B Bonds and any Additional Subordinate Debt) have not been outstanding for the entire three-year period, for the portion of such time period such Bonds (other than the Series B Bonds and any Additional Subordinate Debt) were not outstanding, the interest rate on a debt instrument of similar credit quality and maturity as determined by an Independent Redevelopment Consultant). 18 (e) The related Parity Debt Instrument shall provide that: (i) Interest on such Parity Debt shall be payable on February 1 and August 1 in each year in which interest is payable on such Parity Debt except the first twelve-month period, during which interest may be payable on February 1 or August 1 for the Series ABonds and June 15 or December 15 for the Series B Bonds and provided that (A) there shall be no requirement that such Parity Debt pay interest on a current basis and (B) the interest rate on all Parity Debt shall be fixed for the term of the Parity Debt; (ii) The principal of such Parity Debt shall be payable on August 1 in any year in which principal is payable on such Parity Debt; and (iii) Money (and/or a Qualified Reserve Account Credit Instrument) shall be deposited in the applicable Reserve Account in an amount such that the amount in such Reserve Account is equal to the applicable Reserve Requirement in effect immediately following the issuance of the Parity Debt. (f) The Agency shall deliver to the Trustee a Certificate of the Agency certifying that the conditions precedent to the issuance of such Parity Debt set forth in subsections (a), (b), (c) and (e) above have been satisfied. Series B Bonds Additional Subordinate Debt. Pursuantto the Series B Indenture, in addition to the Series B Bonds, the Agency may issue or incur Additional Subordinate Debt payable from Tax Increment Revenues on a parity with the Series B Bonds in such principal amount as will be determined by the Agency. The Agency may issue or incur any such Additional Subordinate Debt subject to the following specific conditions: (a) No Event of Default, as defined in the Series B Indenture, shall have occurred and be continuing, and the Agency shall otherwise be in compliance with all covenants set forth in the Series B Indenture. (b) Subject to paragraph (d) below, the Tax Increment Revenues for the then current Fiscal Year (based on the assessed valuation of property in the Project Area as evidenced in a written document from an appropriate official of the County) plus, at the option of the Agency, the Additional Allowance shall be at least equal to one hundred ten percent (110%) of the Maximum Annual Debt Service on the Bonds and such new Additional Subordinate Debt. (c) Subject to paragraph (d) below, the issuance of such Additional Subordinate Debt shall not cause the Agency to exceed any applicable Plan Limitations. Without limiting the generality of the foregoing, the Agency shall not issue or execute and deliver any Additional Subordinate Debt in the event and to the extent that either (i) the sum of the aggregate amount of debt service on all outstanding obligations of the Agency payable from Tax Increment Revenues, including such Additional Subordinate Debt, exceeds the aggregate amount of Tax Increment Revenues which are eligible to be allocated and paid to the Agency while such obligations remain outstanding, or (ii) the aggregate principal amount of all outstanding obligations of the Agency, including such Additional Subordinate Debt, exceeds any applicable limit in the Redevelopment Plan on the aggregate principal amount of indebtedness which the Agency is permitted to have outstanding at anyone time. (d) In computing the Maximum Annual Debt Service on the Bonds and the Additional Subordinate Debt for purposes of paragraph (b) above, and the debt service for purposes of paragraph (c) above, if interest on any Bonds or the Additional Subordinate Debt is payable at a variable rate or is otherwise incapable of determination, (A) if the Agency has entered into a variable to fixed swap arrangement with respect to such Bonds or Additional Subordinate Debt the term of which extends for the term of such Bonds or Additional Subordinate Debt and payments by the counterparty on the swap arrangement are guaranteed or insured by an entity whose unsecured debt obligations are rated in the highest rating category by Moody's and S&P, the maximum annual debt service due by the Agency under the swap arrangement shall be used rather than the maximum annual debt service on such Bonds or Additional Subordinate Debt, or (B) the Bonds or Additional 19 Subordinate Debt shall be assumed to bear interest at a fixed rate equal to the average of the daily interest rate on such Bonds or Additional Subordinate Debt during the three-year period preceding the first day of the month in which the determination is made (and, if such Bonds or Additional Subordinate Debt have not been outstanding for the entire three-year period, for the portion of such time period such Bonds or Additional Subordinate Debt were not outstanding, the interest rate on a debt instrument of similar credit quality and maturity as determined by an Independent Redevelopment Consultant). (e) The related Additional Subordinate Debt Instrument shall provide that: (i) Interest on such Additional Subordinate Debt shall be payable on June 15 and December 15 in each year in which interest is payable on such Additional Subordinate Debt except the first twelve-month period, during which interest may be payable on June 15 or December 15 and provided that (A) there shall be no requirement that such Additional Subordinate Debt pay interest on a current basis and (B) the interest rate on all Additional Subordinate Debt shall be fixed for the term of the Additional Subordinate Debt; (ii) The principal of such Additional Subordinate Debt shall be payable on December 15 in any year in which principal is payable; and (iii) Money (and/or a Qualified Reserve Account Credit Instrument) shall be deposited in the applicable Reserve Account in an amount such that the amount in such Reserve Account is equal to the applicable Reserve Requirement in effect immediately following the issuance of the Additional Subordinate Debt. (f) The Agency shall deliver to the Trustee a Certificate of the Agency certifying that the conditions precedent to the issuance of such Additional Subordinate Debt set forth in subsections (a), (b), (c) and (e) above have been satisfied. "Additional Allowance" is defined under the Senior Indenture as the sum of the following: (a) the amount of Tax Increment Revenues which, as shown in the report of an Independent Redevelopment Consultant, are estimated to be receivable by the Agency in the next succeeding Fiscal Year as a result of increases in the assessed valuation of taxable property in the Project Area dueto construction which has been completed but has not yet been reflected on the tax roll; (b) the amount of Tax Increment Revenues which, as shown in the report of an Independent Redevelopment Consultant, are estimated to be receivable by the Agency in the next succeeding Fiscal Year as a result of increases in the assessed valuation of taxable property in the Project Area due to inflation at an assumed annual inflation rate equal to the lesser of (i) the annual rate of inflation for the preceding twelve-month period for which figures are available or (ii) two percent (2%), but only if the rate of inflation had increased by at least two percent (2%) in each of the preceding three Fiscal Years; and (c) an amount equal to the estimated earnings on amounts in the Reserve Accounts in the next succeeding Fiscal Year based upon the amount that is expected to be on deposit in the Reserve Accounts following the issuance of the then proposed Parity Debt (not to exceed the amount of the Reserve Requirement) and an interest rate equal to the lesser of the rate at which amounts in the Reserve Accounts are then invested or five percent (5%) per annum. For purposes of such definition, the term "increases in the assessed valuation" means the amount by which the assessed valuation of taxable property in the Project Area in the next succeedingFiscal Year is estimated to exceed the assessed valuation of taxable property in the Project Area (as reported by the County Auditor-Controller) in the Fiscal Year in which such calculation is made. "Additional Allowance" is defined under the Series B Indenture as the sum of the following: (a) the amount of Tax Increment Revenues which, as shown in the report of an Independent Redevelopment Consultant, are estimated to be receivable by the Agency in the next succeeding Fiscal Year as a result of increases in the assessed valuation of taxable property in the Project Area dueto construction which has been completed but has not yet been reflected on the tax roll; and (b) the amount of Tax Increment Revenues which, as shown in the report of an Independent Redevelopment Consultant, are estimated to be receivable by the Agency in the next succeeding Fiscal Year as a result of increases in the assessed valuation of taxable property in the Project Area due to inflation at an assumed annual inflation rate equal to the lesser of (i) the annual rate of inflation for the preceding twelve-month period for which figures are available or (ii) two percent (2%), but only if the rate of inflation had increased by at least two percent (2%) in each of the 20 preceding three Fiscal Years. For purposes of such definition, the term "increases in the assessed valuation" means the amount by which the assessed valuation of taxable property in the Project Area in the next succeeding Fiscal Year is estimated to exceed the assessed valuation of taxable property in the Project Area (as reported by the County Auditor-Controller) in the Fiscal Year in which such calculation is made. In the Series B Indenture, the Agency has covenanted not to issue any Parity Debt under the Senior Indenture, other than Refunding Debt (as defined in the Senior Indenture), unless (a) the Agency satisfies each of the requirements of paragraphs (a), (b), (c) and (d) as set forth above with respectto Parity Debt as if such Parity Debt was to be Additional Subordinate Debt under the Series B Indenture; (b) the Parity Debt satisfies all applicable requirements of the Senior Indenture; and (c) the Agency provides notice of the incurrence thereof under the Continuing Disclosure Certificate within ten (10) days following the date of incurrence of such loan, advance or indebtedness, relating to the Series B Bonds including the principal amount thereof, the maturity date thereof and the date of incurrence thereof. With respect to the Series ABonds, the Agency may issue or incur Refunding Debt in such principal amount as shall be determined by the Agency so long as the conditions set forth above under Series ABonds Parity Debt in subsections (a), (c) and (e) above are met, and the Agency delivers to the Trustee a Certificate of the Agency certifying that such conditions precedent to the issuance of such Refunding Debt set forth in subsections (a), (c) and (e) above have been met and such Refunding Debt is otherwise in accordance with the definition of Refunding Debt. With respect to the Series B Bonds, the Agency may issue or incur Refunding Debt in such principal amount as shall be determined by the Agency so long as the conditions set forth above under Series B Bonds Additional Subordinate Debt in subsections (a), (c) and (e) above are met, and the Agency delivers to the Trustee a Certificate of the Agency certifying that such conditions precedent to the issuance of such Refunding Debt set forth in subsections (a), (c) and (e) above have been met and such Refunding Debt is otherwise in accordance with the definition of Refunding Debt. "Refunding Debt" is defined in the Indentures to mean any loan, bond, note, advance or indebtedness the proceeds thereof are used to refund all or a portion of any Parity Debt or Additional Subordinate Debt (as applicable) (and to pay costs of issuance of and fund a reserve account for such Refunding Debt), and the debt service due on such Refunding Debt with respect to a Tax Increment Calculation Year in which the Refunding Debt is Outstanding is not greater than the debt service due with respectto such Tax Increment Calculation Year on the portion of the Parity Debt or Subordinate Additional Debt refunded with the proceeds of such Refunding Debt. THE [INSURER] INSURANCE POLICY The information relating to [INSURER} ("INSURER'') contained below and inAppendixG has been furnished by [INSURER). No representation is made herein by the Agency or the Underwriter as to the accuracy or the adequacy of such information or as to the absence of material adverse changes in such information subsequent to the date hereof The [INSURER] Insurance Policy [TO FOLLOW] [INSURER] [INSURER] Information Financial Strength Ratings of [INSURER] 21 RISK FACTORS The following information should be considered by prospective investors in evaluating the 2006 Bonds. However, the following does not purport to be an exhaWitive listing of risks and other considerations which may be relevant to investing in the 2006 Bonds. In addition, the order in which the following information is presented is not intended to reflect the relative importance of any such risks. Bonds Are Limited Obligations and Not General Obligations The 2006 Bonds and the interest thereon are limited obligations of the Agency and do not constitute a general obligation of the Agency. See "SECURITY FOR THE 2006 BONDS" herein. No Owner of the 2006 Bonds may compel exercise of the taxing power of the State or any of its political subdivisions or agencies to pay the principal of or premium, if any, or interest due on the 2006 Bonds. Tax Increment Revenues The Tax Increment Revenues allocated to the Agency, which constitute the primary security for the 2006 Bonds, are determined by the incremental assessed value of taxable property in the Project Area, the current rate or rates at which property in the Project Area is taxed and the percentage of taxes collected in the Project Area. Several types of events which are beyond the control of the Agency could occur and cause a reduction in available Tax Increment Revenues. A reduction of taxable assessed values of property in the Project Area caused by economic or other factors beyond the Agency's control could occur (such as successful appeals by the property owner for a reduction in a property's assessed value, a reduction of the general inflationary rate, areduction in transfers of property, construction activity or other events that permit reassessment of property at lower values, or the destruction of property caused by natural or other disasters), andhave occurred in recent years, thereby causing a reduction in Tax Increment Revenues. Such a reduction in Tax Increment Revenues could have an adverse impact on the Agency's ability to make timely payment of principal of and interest on the 2006 Bonds. As described in greater detail under "LIMITATIONS ON TAX INCREMENT REVENUES - Property Tax Rate Limitations - Article XIIIA," Article XIIIA of the California Constitution provides that the full cash value base of real property used in determining taxable value may be adjusted from year to year to reflect the inflation rate, not to exceed a two percent (2%) increase for any given year; or may be reduced to reflect a reduction in the consumer price index, comparable local data or any reduction in the event of declining property value caused by damage, destruction or other factors (as described above). Such measure is computed on a calendar year basis. Any resulting reduction in the full cash value over the term of the Bonds could reduce Tax Increment Revenues securing the 2006 Bonds. See "LIMITATIONS ON TAX INCREMENT REVENUES - Property Tax Rate Limitations - Article XIIIA." Historically, some property owners within the Project Area have appealed for reductions in the assessed value of their properties. Reductions in the assessed value of the secured property in the Project Area in recent years, as shown in the summaries of historical assessed valuation set forth herein can be attributed in part to such appeals and reductions in property values generally. Tax Increment Revenues may be reduced from current levels as a result of such appeals and reductions in property values generally. See "THE REDEVELOPMENT PLAN - Appeals of Assessed Values" herein. In addition to the other existing limitations on Tax Increment Revenues described below under "LIMITATIONS ONT AX INCREMENT REVENUES,"the California electorate or Legislature could adopt a constitutional or legislative property tax decrease with the effect of reducing Tax Increment Revenues payable to the Agency. There is no assurance that the California electorate or Legislature will not at some future time approve additional limitations that could reduce the Tax Increment Revenues and adversely affect the security of the 2006 Bonds. The Agency has no power to levy and collect property taxes. Any substantial delinquencies in the payment of property taxes by property owners in the Project Area could have an adverse effect on the Agency's ability to make timely debt service payments on the 2006 Bonds. Tax Increment Revenues 22 allocated to the Agency are distributed throughout the year in installments, with the first installment distributed in November and the last installment distributed in August of the succeeding fiscal year. The payments are adjusted to reflect actual collections. See "LIMITATIONS ON TAX INCREMENT REVENUES - Property Tax Collection Procedure" herein. Estimated Tax Increment Revenues The Agency has projected future Tax Increment Revenues. The Agency believes these assumptions to be reasonable, but to the extentthe assessed valuation, the tax rates or the percentage of taxes collected are less than the Agency's assumptions, the Tax Increment Revenues available to pay debt service on the 2006 Bonds would be reduced. See "COVERAGE ANALYSIS" herein. No representations are being made as to the future Tax Increment Revenues, or as to whether the estimated Tax Increment Revenues as shown under the heading "COVERAGE ANAL YSIS"will be realized. Educational Revenue Augmentation Fund; State Budget Uncertainties The State budget for Fiscal Year 1993-94 transferred $2.6 billion to school districts from cities, counties and other local govemments, including redevelopment agencies. As part of the budget's transfer of moneys to school districts, the State Legislature required redevelopment agencies to transfer approximately $65 million to the Educational Revenue Augmentation Fund in both Fiscal Years 1993-94 and 1994-95. From 1994 through 2001-02, state budgets were adopted with no additional shifting of tax increment increases from redevelopment agencies. Commencing in 2002, legislation has been enacted requiring statewide shift of $75 millionfor Fiscal Year 2002-03, $13 5 million for Fiscal Year 2003-04, $250 million for Fiscal Year 2004-05 and $250 million for Fiscal Year 2005-06. There was no shift required for Fiscal Year 2006-07. The amount of payments by the Agency was $253,618 with respect to Fiscal Year 2002-03, $445,334 with respectto Fiscal Year 2003-04, $769,553 with respect to Fiscal Year 2004-05 and $745,277with respect to Fiscal Year 2005-06. There can be no assurance that the State Legislature will not require similar or increased deposits in future years to deal with budget deficits. Economic Concentration A siguificant portion of the Project Area assessed value is related to commercial and industrial property. Consequently, property values in the Project Area are strongly influenced by the vitality of the regional economy and the resulting demand for commercial and industrial space. To the extent that the County economy were to decline, resulting in diminished demand for commercial and industrial space, such a decline could negatively impact the Project Area's assessed values and the receipt of Tax Increment Revenues. Concentration of Ownership The largest property taxpayer in the Project Area accounts for approximately 12.41% of the incremental assessed value of the Project Area, and the ten largest property taxpayers account for approximately 43.30% of incremental assessed value in the Project Area. The largest property taxpayer is expected to undergo an expansion, which will increase its percent of total assessed value. Concentration of ownership presents a risk in that if one or more of the largest property owners were to default on their taxes or were to successfully appeal the tax assessments on property within the Project Area, a substantial decline in Tax Increment Revenues would result. The largest property owners and their ability to pay property taxes could be adversely affected by various factors such as recession or a decline in the value of real estate. As of October 20,2006, the County's records indicate that property taxes for the ten largestassessees are current through the second installment of Fiscal Year 2005-06. One of the ten largest property taxpayers filed assessment appeals that are currently pending. See "THE REDEVELOPMENT PLAN - Assessed Valuation" and "APPENDIXB - FISCAL CONSULTANT'S REPORT - IV - Tax Allocation and Disbursement - F.- Assessment Appeals" herein. Future Land Use Regulations and Growth Control Initiatives In the past, citizens of a number of local communities in Southern California have placed measures on the ballot desigued to limit the issuance of building permits or impose other restrictions to control the rate 23 of future growth in those areas. It is possible that future initiatives could be enacted, could be applicable to the City and have a negative impact on the ability of developers in the Project Area to complete any existing or proposed development. Bondowners should assume that any event that significantly affects the ability to develop land in the City could cause the land values within the Project Area to decrease substantially and could affect the willingness and ability of the owners of land within the Project Area to pay property taxes when due. There can be no assurance that land development within the City will not be adversely affected by future governmental policies, including but not limited to, government policies to restrict or control development. Under current State law, it is generally accepted that proposed development is not exempt from future land use regnlations until building permits have been issued and substantial work has been performed and substantial liabilities have been incurred in good faith reliance on the permits prior to the adoption of such regnlations. Bankruptcy and Foreclosure On July 30, 1992 the United States Court of Appeals for the Ninth Circuit issued an opinion in a bankruptcy case entitled In re Glasply Marine Industries holding that ad valorem property taxes levied by a county in the State of Washington after the date that the property owner filed a petition for bankruptcy would not be entitled to priority over the claims of a secured creditor with a prior lien on the property. Similar results were reached by several circuit courts in other circuits. Subsequently, however, Section 362(b)( 18) of the Bankruptcy Code was enacted, effectively overturning this line of decisions and providing that local governments may rely on statutory property tax liens to secure payment of property taxes after the filing of a bankruptcy petition. County Payment of Tax Increment Revenues Pursuantto its administrative practice, the County provides the Agency with full tax and assessment levies instead of actual tax and assessment collections. Thus, the County's payments may help protect Owners of the 2006 Bonds from the risk of delinquencies in the payment of ad valorem taxes. However, if the County were to change such payment procedures, such a change with respect to the Agency would eliminate such protection from delinquent ad valorem taxes. See "SECURITY FOR THE 2006 BONDS - County Payments of Tax Increment Revenues." Seismic Factors and Flooding The occurrence of severe seismic activity and/or flooding in the Project Area could result in substantial damage to property located in the Project Area, and could lead to successful appeals for reduction of assessed values of such property. Such a reduction could result in a decrease in Tax Increment Revenue collected by the Agency. Portions of the Project Area are within the 100-year flood plain. The Project Area is located in an active seismic region. The Elsinore, San Jacinto, Wildomar and San Andreas Fault Zones are all in the vicinity of the City. The proximity to these faults makes the Project Area subject to the hazards associated with ground shaking and soil instability. Hazardous Substances An environmental condition that may result in the reduction in the assessed value of parcels would be the discovery of a hazardous substance that would limit the beneficial use of a property within the Project Area. In general, the owners and operators of a property may be required by law to remedy conditions of the property relating to releases or threatened releases of hazardous substances. The owner may be required to remedy a hazardous substance condition of property whether or not the owner or operator has anything to do with creating or handling the hazardous substance. The effect, therefore, should any of the property within the Project Area be affected by a hazardous substance would be to reduce the marketability and value of the property by the costs of remedying the condition. 24 School District Litigation The Santa Ana Unified School District (the "School District") filed litigation against the Orange County Development Agency (the "OCDA") regarding the application of provisions of the Redevelopment Lawto certain pass-through obligations of the OCDA to the School District. The School District argued to the trial court that it could electto receive its share of tax increment revenues from an OCDA redevelopment project area by means of certain filings made after the applicable project area had been formed. The OCDA argued that the applicable filings needed to be made before the redevelopment plan for the project area was adopted. The trial court ruled in favor of the School District and the Court of Appeals of the State of California affirmed the trial court decision. The California Supreme Court denied review of the decision. It is believed that this decision will have no effect on the Agency in that all school districts within the Project Area have entered into negotiated tax-sharing agreements with the Agency. No Acceleration on Default In the event of default under either Indenture, as a practical matter, Bond Owners will be limited to obtaining the moneys in the related Reserve Account and enforcing the obligation of the Agency to repay the 2006 Bond on an annual basis to the extent of the Tax Revenues. No real or personal property in the Project Area is pledged to secure the 2006 bonds and it is not anticipated that the Agency will have available moneys sufficient to redeem all of the 2006 Bonds in the even of an acceleration resulting from an event of default. Loss of Tax Exem ption In order to maintain the exclusion from gross income for federal income tax purposes of the interest on the 2006 Bonds, the Agency has covenanted in the Indentures to comply with each applicable requirement of the Internal Revenue Code of 1986, as amended. The interest on the 2006 Bonds could become includable in gross income for purposes of federal income taxation retroactive to the date of issuance of the 2006 Bonds, as a result of acts or omissions of the Agency in violation of covenants in either of the Indentures. Should such an event of taxability occur, the 2006 Bonds may not be subject to acceleration or redemption and no increase in interest rates will occur, and the 2006 Bonds will remain Outstanding until maturity or until redeemed under one of the redemption provisions contained in the Indentures. See "TAX MATTERS" herein. Assumptions and Projections Any reduction in Tax Increment Revenues, whether for any of the foregoing reasons or any other reason, could have an adverse effect on the Agency's ability to make timely payments of principal of, premium, if any, and interest on the 2006 Bonds, which are secured by such Tax Increment Revenues. To estimate the total Tax IncrementRevenues available to pay debt service on the 2006 Bonds, the Agency has made certain assumptions with regard to the assessed valuation in the Project Area and estimated increase in assessed valuation. See "COVERAGE ANALYSIS" for a discussion of the assumptions underlying the projections set forth herein with respect to Tax Increment Revenues. The Agency believes these assumptions to be reasonable, but to the extent that the assessed valuations and the change in assessed valuation differ from the Agency's assumptions, the total Tax Increment Revenues available will, in all likelihood, be different than those projected herein. See "COVERAGE ANALYSIS" herein. SPECIAL RISK CONSIDERATIONS SPECIFIC TO THE SERIES B BONDS In addition to the risks described under the heading "RISK FACTORS," 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 2002 Bonds and any Parity Debt. The Series B Bonds are not rated and are not insured by . For this reason, investments in the Series B Bonds involve a higher degree of risk and are not appropriate for all investors. Subordination of Series B Bonds; Issuance of additional Parity Debt 25 The Series B Bonds are subordinate to the Series A Bonds, 2002 Bonds and any Parity Debt issued in the future in right of payment. Tax Increment Revenues will be available to pay obligations on the Series B Bonds only after all payments and deposits in respect of the Series A Bonds, 2002 Bonds and any additional Parity Debt have been made as set forth herein and in the Indentures. In the event of delinquencies in the payment of ad valorem taxes which exceed the expected amount of debt service coverage from the Tax Increment Revenues, there may not be sufficient Tax Increment 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 guarantee that there will be a secondary market for purchase or sale of the Series B Bonds or, if a secondary marketexists, that the Series B Bonds 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 may make the secondary market, the financial condition and results of operations of the owners of property located within the boundaries of the Project Area, and the extent of the development of property within the Project Area. No Ratings of Series B Bonds The Series B Bonds are not rated by any rating agency, and the Agency does not presently intend to seek any rating of the Series B Bonds nor does the Agency anticipate that the Series B Bonds would qualify for an investment grade rating due to the structure and size of the Series A Bonds and the 2002 Bonds. No Insurance The Insurance Policy does not apply to the Series B Bonds. LIMITATIONS ON TAX INCREMENT REVENUES Property Tax Collection Procedure In California, property which is subject to advalorem taxes is classified as "secured" or "unsecured." The secured classification includes property on which any property tax levied by the County becomes a lien on that property. A tax levied on unsecured property does not become a lien against the unsecured property, but may become a lien on certain other property owned by the taxpayer. Every tax which becomes a lien on secured property has priority over all other liens on the secured property, regardless of the time of the creation of other private liens. Secured and unsecured property are entered on separate parts of the assessment roll maintained by the county assessor. The method of collecting delinquent taxes is substantially different for the two classifications of property. The taxing authority has four ways of collecting unsecured personal property taxes: (1) a civil action against the taxpayer; (2) filing a certificate in the office of the county clerk specifying certain facts in order to obtain a judgment lien on certain property of the taxpayer; (3) filing a certificate of delinquency for record in the county recorder's office, in order to obtain a lien on certain property of the taxpayer; and (4) seizure and sale of the personal property, improvement or possessory interests belonging or assessed to the assessee. The exclusive means of enforcing the payment of delinquent taxes with respect to property on the secured roll is the sale of property securing the taxes to the State for the amount of taxes which are delinquent. A 10 percent penalty is added to delinquent taxes which have been levied with respect to property on the secured roll. In addition, on or about June 30 of the fiscal year, property on the secured roll on which taxes are delinquent is declared in default by operation of law and declaration of the tax collector. Such property may thereafter be redeemed by payment of the delinquent taxes and a delinquency penalty, plus a 26 redemption penalty of 1-1/2 percent per month to the time of redemption. If taxes are unpaid for a period of five years or more, the property is subject to sale by the County tax collector. The valuation of property is determined as of the January 1 lien date as equalized in August of each year and equal installments of taxes levied upon secured property become delinquent on the following December 10 and April 10. Taxes on unsecured property are due January 1 and become delinquent August 31. Supplemental Assessments A bill enacted in 1983, SB 813 (Statutes of 1983, Chapter 498), provides for the supplemental assessment and taxation of property upon the occurrence of a change in ownership or completion of new construction. Previously, statutes enabled the assessment of such changes only as of the next January 1 tax lien date following the change and thus delayed the realization of increased property taxes from the new assessments for up to 14 months. As enacted, Chapter 498 provides increased revenue to redevelopment agencies to the extent that supplemental assessments of new construction or changes of ownership occur within the boundaries of redevelopment projects subsequent to the January 1 lien date. To the extent such supplemental assessments occur within the Project Area, Agency revenues may increase. Tax Collector Fees SB 2557 (Statutes of 1990, Chapter 466) authorizes county auditors to determine property tax administration costs proportionately attributable to local jurisdictions and to submit invoices to the jurisdictions for such costs. An estimated amount of such costs have been excluded in determining the Tax Increment Revenues which are pledged to repay the 2006 Bonds. Unitary Property AB 454 (Statutes of 1987, Chapter 921) modifies the distribution of tax revenues derived from property assessed by the State Board of Equalization. Chapter 921 provides for the consolidation of all State- assessed property, except for non-operating, non-unitary and regulated railroad property, into a single tax rate area in each county. Chapter 921 further provides for a new method of establishing tax rates on State- assessed property and distribution of property tax revenues derived from State-assessed property to taxing jurisdictions within each county in accordance with a new formula. Railroads will continue to be assessed and revenues allocated to all tax rate areas where railroad property is sited. Chapter 921 provides redevelopment agencies with their appropriate share of revenue generated from the property assessed by the State Board of Equalization. Property Tax Rate Limitations - Article XIIIA California voters, on June 6, 1978, approved an amendment (commonly known as Proposition 13) to the State Constitution. This amendment, which added Article XIIIA to the State Constitution, among other things affects the valuation of real property for the purpose of taxation in that it defines the full cash property value to mean "the county assessor's valuation of real property as shown on the 1975-76 tax bill under 'full cash value,' or thereafter, the appraised value of real property when purchased, newly constructed, or a change in ownership has occurred after the 1975 assessment." The full cash value may be adjusted annually to reflect inflation at a rate not to exceed two percent (2%) per year, a reduction in the consumer price index or comparable local data, or declining property value caused by damage, destruction or other factors including a general economic downturn. The amendment further limits the amount of any ad valorem tax on real property to one percent (1 %) of the full cash value except that additional taxes may be levied to pay debt service on indebtedness approved by the voters prior to July 1, 1978, and bonded indebtedness for the acquisition or improvement of real property approved on or after July 1, 1978 by two-thirds of the votes cast by the voters voting on the proposition. In the general election held November 4, 1986, voters of the State of California approved two measures, Propositions 58 and60, which further amend Article XIIIA. Proposition 58 amends Article XIIIA to provide that the terms "purchased" and "change of ownership," forpurposes of determining full cash value of property under Article XIIIA, do not include the purchase or transfer of (1) real property between spouses and (2) the principal residence and the first $1,000,000 of other property between parents and children. 27 Proposition 60 amends Article XIIIA to permit the State Legislature to allow persons over age 55 who sell their residence to buy or build another of equal or lesser value within two years in the same county, to transfer the old residence's assessed value to the new residence. Pursuant to Proposition 60, the State Legislature has enacted legislation permitting counties to implement the provisions of Proposition 60. Challenges to Article XllIA. On September 22, 1978, the California Supreme Court upheld the amendment over challenges on several state and federal constitutional grounds (Amador Valley Joint Union High School District v. State Board of Equalization). The California Supreme Court reserved certain constitutional issues and the validity of legislation implementing the amendment for future determination in proper cases. Since 1978, several cases have been decided interpreting various provisions of Article XIIIA; however, none of them have questioned the ability of redevelopment agencies to use tax allocation financing. The United States Supreme Court upheld the validity of the assessment procedures of Article XIIIA in Nordlinger v. Hahn. The Agency cannot predict whether there will be any future challenges to California's present system of property tax assessment and cannot evaluate the ultimate effect on the Agency's receipt of Tax Increment Revenues should a future decision hold unconstitutional the method of assessing property. Implementing Legislation. Legislation enacted by the State Legislature to implement Article XIIIA provides that all taxable property is shown at full assessed value as described above. In conformity with this procedure, all taxable property value included in this Official Statement (except as noted) is shown at 100 percent of assessed value and all general tax rates reflect the $1 per $100 of taxable value. Tax rates for voter approved bonded indebtedness and pension liability are also applied to 100 percent of assessed value. Future assessed valuation growth allowed under Article XIIIA (new construction, change of ownership, two percent (2%) annual value growth) will be allocated on the basis of "situs" among the jurisdictions that serve the tax rate area within which the growth occurs, except for certain utility property assessed by the State Board of Equalization. Local agencies and school districts will share the growth of "base" revenue from the tax rate area. Each year's growth allocation becomes part of each agency's allocation the following year. The Agency is unable to predict the nature or magnitude of future revenue sources which may be provided by the State of California to replace lost property tax revenues. Article XIIIA effectively prohibits the levying of any other ad valorem property tax above the one percent (1%) limit except for taxes to support indebtedness approved by the voters as described above. Article XIIIB of the California Constitution On November 6, 1979, California voters approved Proposition 4 which added Article XIIIB to the State Constitution, subsequently amended several times. The principal effect of Article XIIIB is to limit the annual appropriations of the State and any city, county, school district, authority or other political subdivision of the State to the level of appropriations for the prior fiscal year, as adjusted for changes in the cost of living, population and services rendered by the government entity. The base years for establishing such appropriation limit is Fiscal Year 1986-87 and the limit is to be adjusted annually to reflect changes in population, cost of living and certain increases in the cost of services provided by these public agencies. Appropriations subject to Article XIIIB include generally the proceeds of taxes levied by the State or other entity oflocal government, exclusive of certain State subventions, refunds of taxes, benefit payments from retirement, unemployment insurance and disability insurance funds. Effective September 30, 1980, the California Legislature added Section 33678 to the Health and Safety Code which provides that the allocation of taxes to a redevelopment agency for the purpose of paying principal of, or interest on, loans, advances, or indebtedness will not be deemed the receipt by the agency of proceeds of taxes levied by or on behalfofthe agency within the meaning of Article XIIIB or any statutory provision enacted in implementation thereof. The constitutionality of Section 33678 has been upheld by the Second and FourthDistrict Court of Appeals in two decisions: Bell RedevelopmentAgency v. Wooselyand Brown v. RedevelopmentAgency of the City ofSantaAna, which cases were not accepted for review by the California Supreme Court. 28 Pass- Through Agreements; Other Contractual Obligations P ass- Through Agreements. Pursuant to Section 3340 l(b) of the Redevelopment Law (as in effect prior to January 1, 1994), a redevelopment agency was authorized to enter into an agreement to pay tax increment revenues to any taxing agency that has territory located within a redevelopment project in an amount which in the agency's determination is appropriate to alleviate any financial burden or detriment caused by the redevelopment project. These agreements normally provide for a pass-through of tax increment revenue directly to the affected taxing agency, and, therefore, are commonly referred to as "pass- through" or "fiscal" agreements. As discussed earlier, the County originally adopted the Project Area. At the time of adoption, the County entered into a number of pass-through agreements (collectively, the "Pass-Through Agreements"). All of these agreements with school districts called for the districts to receive 29.62 percent of their shares of general levy tax increment revenue. All non-school district Pass-Through Agreements called for the taxing entities to receive 100 percent of their general levy tax increment revenue. These Pass-Through Agreements became obligations of the Agency at the time that the Project Area was adopted by the Agency. These agreements have a lien on Tax Increment Revenues that is superior to the lien for debt service on the Bonds. The agreements are summarized in the table below: Taxing Entity County of Riverside County Library Department County Structural Fire Department Temecula Public Cemetery District Eastern Municipal Water District Riverside County Flood Control District Rancho California Water District Temecula Valley Unified School District Mt. San Jacinto Community College District Riverside County Supt. of Schools(2) 1% Share 18.12% 2.18% 4.70% 0.40% 10.05% 1.76% 5.92% 31.61% 3.60% 10.53% Pass-Through Share(l) 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 29.62% 29.62% 29.62% (1) The Pass-ThroughAgreernentwith the COlmtyofRiverside, the COlmty Library Department andCollllty Structural Fire Department are made from general levy revenues net of SB 2557 COlmty Administrative charges. At the time the Agency adopted the Project Area Redevelopment Plan, it entered into an agreement with the County on May 21, 1991. This agreement called for tax-sharing payments to be made to the County General Fund, the County Structural Fire Department and the County Library Department. It also provided for a partial deferral of the payments to the County General Fund. The Agency and the County entered into an amended and restated County Pass-Through Agreement dated January 2, 2002. The new agreement calls for the Agency to make tax-sharing payments to the County General Fund, Structural Fire Department and Library Department from general levy tax increment revenues net of the SB 2557 Administrative Fee. The General Fund share is 18.12 percent, the County Structural Fire Department share is 4.70 percent and the County Library Department share is 2.18 percent. In addition to the tax-sharing payments, the agreement specified that the Agency pay the County a total of $6 million from the proceeds of the Agency's 2002 Bonds as repayment of the County tax-sharing payments deferred under the May 21, 1991 agreement. The $6 million was paid to the County in July 2002. The Agency further agreed to contribute $5 million toward the acquisition of right-of-way for a project referred to as the Date/Cherry Interchange. According to the Agency, funding for this agreement was provided from sources other than Tax Increment Revenues and other than proceeds of the 2002 Bonds. Under the County Pass-Through Agreement, the Auditor Controller is responsible for calculating the amount of the tax-sharing payments and allocating these payments to the various taxing entities. The 29 County Pass-Through Agreement does not provide for subordination of the tax-sharing payments to the County, Structural Fire Department or Library Department to debt service on the 2006 Bonds. To the extent that the Tax Increment Revenues remaining after satisfaction of the Agency's obligations under the Pass- ThroughAgreements described above are not sufficient topaythe scheduleddebt service on the 2006 Bonds, there could be a default in the payment of debt service on the 2006 Bonds. Owner P articipationAgreements. The Agency has entered into two Owner Participation Agreements that call for payments to be made to the Owner Participants. The first agreement between the Agency and International Rectifier Corporation ("International Rectifier"), was entered into on December 9, 1997 and amended on December 15, 1998. Pursuant to the agreement, the Agency notified International Rectifier on April23, 2002, that the agreement was terminated. International Rectifier never satisfied the requirements of the agreement and no payments were ever made by the Agency pursuant to the agreement. The second agreement between the Agency and Advanced Cardiovascular Systems, Inc. (the "Participant") was entered into on February 12, 2002. Under the terms of this agreement, the Participant agrees to add not less than 90,000 square feet of gross building area to its present facilities and to add not less than 150new full time jobs. The Participant further agrees to add another 150 new full time jobs within five years of the issuance of the certificate of occupancy on the Phase I improvements. The Participant also agrees that within five years of the issuance of a certificate of occupancyfo thePhase I improvements, it will receive a certificate of occupancy for at least 90,0000 additional square feet of building area. Alternatively, the agreement specifies that the Participant may increase the size of the Phase I improvements to at least 135,000 and the requirement of a second phase of improvements will be deemed satisfied. Upon completion of the prerequisites set forth in the agreement, the Agency agrees to remit to the Participant50% of the net tax increment revenue derived from the increase in assessed value that results from development of Phases I and II. Net tax increment is defined in the agreement as being the total tax increment received by the Agency less 20% for housing set-aside and amounts required by existing tax sharing agreements. The office and manufacturing buildings of Phase I are not yet under construction but construction of a three story parking garage has been started. At this juncture, no one can predict the amount of tax revenue that may be produced by these improvements or determine when that tax revenue may be realized. The Agency and the Fiscal Consultant are further unable to determine when or if the Participant will achieve the conditions required prior to receiving payments from the Agency. Only the estimated value of the parking structure has been factored into the projection of tax revenues by the Fiscal Consultant. The estimated value of this parking structure is $29.13 million and this value is projected to be added to the tax rolls in 2008-09. The Agency will pay an amount equal to 50% of certain tax increment revenues received by the Agency. The Agreement makes no pledge of any funds of the Agency or the City, and in particular there is no pledge of Tax Increment Revenues or pledge of the City's general fund. The payments made by the Agency pursuant to the agreement will, therefore, be subordinate to the pledge of tax revenues to payment of debt service on the Bonds. The scope of the development is such that these improvements may cause the Project Area to reach its tax increment limit earlier than anticipated in the projection. Exclusion of Tax Increment Revenues for General Obligation Bonds Debt Service An initiative to amend the California Constitution entitled "Property Tax Increment Revenues Redevelopment Agencies" was approved by California voters at the November 8, 1988 general election. Under prior law, a redevelopment agency using tax increment revenue received additional property tax revenue whenever a local government increased its property tax rate to payoff its general obligation bonds. This initiative amended the California Constitution to allow the California Legislature to prohibit redevelopment agencies from receiving any of the property tax revenues raised by increased property tax rates imposed by local governments to make payments on their bonded indebtedness. The initiative only applies to tax rates levied to finance general obligation bonds approved by the voters on or after January 1, 1989. Any revenue reduction to redevelopment agencies would depend on the number and value of the general obligation bonds approved by voters in prior years, which tax rate will reduce due to increased valuation subject to the tax or the retirement of the indebtedness. 30 Proposition 218 On November 5, 1996, California voters approved Proposition 218 - Voter Approval for Local Government Taxes - Limitation on Fees, Assessments, and Charges -Initiative Constitutional Amendment. Proposition 218 added Articles XIIIC and xmD to the California Constitution, imposing certain vote requirements and other limitations on the imposition of new or increased taxes, assessments and property- related fees and charges. Tax Increment Revenues securing the Bonds are derived from property taxes which are outside the scope of taxes, assessments and property-related fees and charges which were limited by Proposition 218. Future Initiatives or Legislation Article XIIIA, Article XIIIB and certain other propositions affecting property tax levies were each adopted as measures which qualified for the ballot pursuant to California's initiative process and legislation described above was adopted by the California Legislature. From time to time other initiative measures or legislation could be adopted, further affecting Agency revenues or the Agency's ability to expend revenues. The nature and impact of these measures cannot be anticipated by the Agency. Low and Moderate Income Housing Chapter 1337, Statutes of 1976, added Sections 33334.2 and 33334.3 to the Redevelopment Law requiring redevelopment agencies to set-aside 20 percent of all tax increment derived from redevelopment project areas adopted after December 31, 1976 in a low and moderate income housing fund. This low and moderate income housing requirement could be reduced or eliminated if a redevelopment agency finds that: (a) no need exists in the community to improve or increase the supply of low and moderate income housing; (b) that some stated percentage less than 20 percent of the tax increment is sufficient to meet the housing need; and (c) any increase in revenue above two percent would be allocated in the same proportion as the taxing entity's local secured taxable values are to the local secured taxable values of the County (the low and moderate income housing requirement may not be reduced pursuant to finding in this third clause after June 30, 1993). The Agency has historically, and intends to, annually set aside in its low and moderate income housing fund 20 percent of the gross tax increment revenues allocated to the Agency with respect to the Project Area. The Tax Increment Revenues do not include tax increment set aside pursuant to the Agency's 20 percent low and moderate income housing set aside requirement. Redevelopment Plan Limitations The amended Redevelopment Plan contains various limitations on the Agency's ability to incur indebtedness and to receive tax increment revenues. Pursuant to the Agency's Senate Bill 1096 Amendment, the plan termination date is July 12, 2029 and the debt repayment date is July 12, 2039. The date of the existing limit to incur debt is July 12, 2008. In addition, the City is a party to the 1991 Settlement Agreement (as defined below) which imposes additional limitations on the Agency's ability to incur indebtedness and to receive tax increment revenues. See "THE REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA - Agency Powers" and" - Limitations Under 1991 Settlement Agreement" below. Senate Bill 211 was signed into law as of Chapter 741, Statutes of 2001. This legislation has two main impacts on the limits contained in an agency's redevelopment plan. First, a city council may amend the redevelopment plan to eliminate the time limit to establish indebtedness in project areas adopted prior to January 1, 1994 by ordinance. If the plan is so amended, existing tax sharing agreements will continue and certain statutory tax sharing for entities without tax sharing agreements will commence in the year the eliminated limit would have taken effect. Second, a city council may extend the time limit for plan effectiveness and repayment of debt for up to ten years if its can make certain specified findings. The Agency is considering an amendment to eliminate or extend the time limit for establishment of indebtedness but no decision has been made as yet. 31 THE REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA Agency Members On July 12, 1988, the County, prior to the incorporation of the City, adopted the "County of Riverside Redevelopment Plan 1 - 1988" by Ordinance No. 658. On December 1, 1989 the City was incorporated. All of the area within the County Redevelopment Plan was included within the boundaries of the City. The Agency was established on April 27, 1991, by the City Council with the adoption of Ordinance No. 91-08 pursuant to the Redevelopment Law. The five members of the City Council serve as the governing body of the Agency, and exercise all rights, powers, duties and privileges of the Agency. The persons holding the positions of Chairperson and Vice Chairperson is subject to change each year. The members of the governing body of the Agency are as follows: [UPDATE BEFORE PRINTING] Member Michael S. Naggar, Chairperson Maryann Edwards, Vice Chairperson Ron Roberts, Board Member Charles W. Washington, Board Member JeffComerchero, Board Member Agency Administration The Agency is administered by certain staff of the City. The City is a general law city and operates according to the CounciVManagerform of government. The City Manager is appointed by the City Council to administer the City's staff and generally implement policies established by the City Council. Current City staff assigned to administer the Agency include Shawn Nelson, City Manager of the City and Executive Director of the Agency, Genie Roberts, Finance Director of the City and Treasurer of the Agency, John Meyer, Redevelopment Director for the Agency, and Susan Jones, City Clerk and Secretary to the Agency. The Agency has an arrangement with the City for financial assistance and services, facilities and personnel support. As moneys become available, the Agency reimburses the City for all such services performed in amounts equal to a portion of the gross salary and employee fringe benefits for certain City employees utilized by the Agency plus other miscellaneous operating and equipment costs. The Redevelopment Law requires redevelopment agencies to have an independent financial audit conducted each year. The financial audit is also required to include an opinion of the Agency's compliance with laws, regnlations and administrative requirements governing activities of the Agency. Diehl Evans & Company, LLP, Irvine, California, audited the financial statements of the Agency for the fiscal year that ended June 30,2006, and rendered its financial opinion and compliance opinion with respect thereto, which are included in Appendix C attached hereto. The Agency has not requested nor did the Agency obtain permission from Diehl Evans & Company, LLP, to include the audited financial statements as an appendix to this Official Statement. Accordingly, Diehl Evans & Company, LLP, has not performed any post-audit review of the financial condition or operations of the Agency. Agency Powers All powers of the Agency are vested in its governing body. Pursuant to the Redevelopment Law, the Agency may exercise broad governmental functions and authority to accomplish its purposes, including, butnot limited to, the right of eminent domain, the rightto issue bonds for authorized purposes and to expend their proceeds, and the right to acquire, sell, rehabilitate, develop, administer or lease property. The Agency 32 may demolish buildings, clear land and cause to be constructed certain improvements, including streets, sidewalks, and utilities. The Agency may not construct or develop buildings, with the exception of public facilities and housing, but must sell or lease cleared property for construction and development in accordance with the Redevelopment Plan. Limitations Under 1991 Settlement Agreement Pursuant to a Settlement Agreement (the "1991 Settlement Agreement") entered on June 5, 1991, in the Superior Court of the State of Californiafor the County, the Agency and the City, as amended in 1995, various additional limitations are placed on the Redevelopment Plan, including that subject to certain exceptions, no more than $150 million of tax increment revenues shall be allotted or paid to the Agency during the term of the Redevelopment Plan (excluding the Housing Set-Aside amounts and certain other amounts). Based on Agency records, the Agency has received approximately $117,962,928 of Tax Increment Revenues from its inception through 2005-06. The amount of revenue that is applicable to the 1991 Settlement Agreement limitation is approximately $18,762,775. Based on the projection and taking into accountthe interest costs of the 2002 Bonds and the projected interest costs of the 2006 Bonds, the Project Area tax increment limit will not be exceeded prior to the expiration of the Project Area's ability to repay indebtedness. If the rate of growth in assessed value exceeds 2.5 percent per year, however, the tax increment limit will be exceeded before the last date to repay indebtedness. If the Agency determines to issue additional bonded debt in the future exceeding the tax increment limit may be significantly delayed. The Project Area's average annual growth in assessed value over the past 10 years had been 8.62 percent. If the Project Area's assessed value continues to grow at this same rate, the tax increment limit will be reached in Fiscal Year 2024-25. If the assessed value grows by an average annual rate of 5 percent the tax increment limit will be reached by Fiscal Year 2030-31. The Agency has covenanted to annually engage an Independent Redevelopment Consultant (as defined in the Indentures) to calculate the total amount of Tax Increment Revenues remaining available to be received by the Agency under the Plan Limitations, as well as future cumulative annual debt service requirements for the Senior Obligations (as defined in the Series B Indenture) and for the Series B Bonds. If any such calculation determines that the Tax Increment Revenues remaining available to the Agency under the Plan Limitations after deductions for all amounts to be paid to satisfy all obligations owing on the Senior Obligations, will equal one hundred ten percent (110%) or less of the then unpaid principal of the Series B Bonds, the Agency shall deposit in escrow all Tax Increment Revenues thereafter received by the Agency not needed for purposes of the Senior Indenture to be used for future debt service on, or to redeem or defease the Series B Bonds and any Additional Subordinate Debt. If Parity Debt or Additional Subordinate Debt is issued, amounts relating to interest on such Parity Debt or Additional Subordinate Debt and amounts relating to housing set-aside portion are not included in the 1991 Settlement Agreement limitation. See "THE REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA - Agency Powers." Outstanding Indebtedness of the Agency Certification of Agencv Indebtedness. Pursuant to Section 33675 of the Redevelopment Law, on or before October 1 of each year an agency must file with the county auditor a statement of indebtedness certified by the chief fiscal officer of the agency for each redevelopment project that receives tax increment. The statement of indebtedness is required to contain the date on which any bonds were delivered, the principal amount, term, purpose and interest rate of bonds and the outstanding balance and amount due on bonds. Similar information must be given for each loan, advance or indebtedness that the agency has incurred or entered into to be payable from tax increment. The Agency has complied with the requirements of Section 33675 each year since its effective date. Section 33675 also provides that the county auditor is limited in payment of tax increment to the agency to the amounts shown on the agency's statement of indebtedness. The section further provides that the statement of indebtedness is prima facie evidence of the indebtedness of the agency, but that the county auditor may dispute the amount of indebtedness shown on the statement in certain cases. Provision is made for time limits under which the dispute can be made by the county auditor as well as provisions for determination by the Superior Court in a declaratory relief action of the proper disposition of the matter. The issue in any such action must involve only the amount of the indebtedness and not the validity of any contract or debt instrument, or any expenditures pursuant thereto. An exception is made for payments to a public 33 agency in connection with payments by such public agency pursuant to a bond issue which shall not be disputed in any action under Section 33675. Outstandinr Indehtedness The Agency issued $2,427,500 of Multifamily Housing Revenue Bonds on April 25, 1996. The proceeds of the issuance were loaned to the Coachella Valley Housing Coalition (the "Housing Coalition"), a California non-profit public benefit corporation, to enable the Housing Coalition to acquire and rehabilitate a 150-unit multi-family housing rental apartment development located in the City. As of September 15, 2006, $1,604,500 of the Multifamily Housing Revenue Bonds remained outstanding. This obligation is payable from amounts paid by the Housing Coalition and is not payable from Tax Increment Revenues. On July 17, 1998, the Agency borrowed $5,800,000 from Washington Mutual Bank, F.A. The proceeds were loaned to Temecula Gardens LP (the "Temecula Gardens''), a California limited partnership, to assist Temecula Gardens in the acquisition of land and the acquisition and rehabilitation of an existing multi-family housing rental project. As of September 15, 2006, the outstanding loan balance was $5,332,897.84. The loan is not a general obligation of the Agency, and the City will in no way be responsible for the repayment of the loan. This obligation is payable from amounts paid by Temecula Gardens and is not payable from Tax Increment Revenues. Obligation to the City. In the first quarter of 1996, the City conveyed certain real property to the Agency for use on a redevelopment project in exchange for a promissory note in the amount of $918,171. As of September 15, 2006, the outstanding amount of the note is $1,672,558. Pass-Through A!!feements and OwnerParticioation A!!feements. See "LIMITATIONS ON TAX INCREMENT REVENUES - Pass-Through Agreements; Other Contractual Obligations" herein for a description of the County Agreement and Other Pass-Through Agreements. The Agency is obligated under such pass-through obligations and an owner participation agreement to contribute certain property tax increment revenues otherwise allocable to the Agency in the amounts and for the purposes set forth in those agreements or Redevelopment Law, as applicable. Property tax increments arising in the Project Area required for payments by the Agency under certain of these agreements are not "Tax Increment Revenues" for purposes of the Indentures, and are not available to pay debt service on the Bonds. Investment of Agency Funds The Agencymay invest moneys not immediately required for operations in a manner consistent with the City's investment policy (the "Investment Policy"). For a description of the types of investments in which the Agency may invest, see "APPENDIX C - REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA ANNUAL FINANCIAL AND COMPLIANCE REPORT FOR FISCAL YEAR ENDING JUNE 30, 2006," Note 2. Controls, Land Use and Building Restrictions All real property in the ProjectArea is subject to the controls and restrictions of the Redevelopment Plan. The Redevelopment Plan provides that all new construction in the Project Area shall comply with all applicable State and local laws in effect, including the various codes of the City. The Redevelopment Plan specifies particular land use areas. The Agency may permit an existing but nonconforming use to continue so long as the Agency determines that the use is generally compatible with other surrounding development uses. Within the limits, restrictions and controls established in the Redevelopment Plan, the Agency is authorized to limit the number, type, size and height of buildings in the Project Area, and to establish design criteria, traffic circulation, traffic access and other development and design controls necessary for property development within the Project Area. Under exceptional circumstances, the Agency is authorized to permit minor variations from the limits, restrictions, and controls established by the Redevelopment Plan. However, no variation shall be granted which changes a basic land use or which permits substantial departures from the Redevelopment Plan's provisions. In permitting a variation, the Agency must impose such conditions as are necessary to 34 protect the public health, safety or welfare and to assure compliance with the objectives of the Redevelopment Plan. 35 [INSERT COLOR MAP OF THE PROJECT AREA HERE] 36 THE REDEVELOPMENT PLAN Under the Redevelopment Law every redevelopment agency is required to adopt, by ordinance, a redevelopment plan for each redevelopment project. A redevelopment plan is a legal document, the content of which is largely prescribed in the Redevelopment Law rather than a "plan" in the customary sense of the word. The City Council of the City adopted Ordinance No. 91-11 on May 9, 1991, and Ordinance No. 91-15 on April 9, 1991, approving the County Redevelopment Plan as the TemeculaRedevelopmentPlan No.1 (defined above as the "Redevelopment Plan") and transferring jurisdiction over the Redevelopment Plan to the Agency. This transfer was effective July 1, 1991. The Temecula Redevelopment Project No.1, the area encompassed by the Redevelopment Plan (the "Project Area"), is primarily commercial and industrial in nature. It is generally located along Interstate 15 from the City's northern border with the City of Murrieta to the intersection of Highway 79 on the south. The Project Area encompasses approximately 1,635 acres. The Project Area includes the Promenade Mall site, Old Town and industrial and business park areas west of the freeway The Redevelopment Plan for the Project Area was adopted prior to January 1, 1994. Chapter 942 specifies that a time limit on establishment of new debt be incorporated into the Redevelopment Plan and that time limit shall be twenty years from the adoption of the Redevelopment Plan or January 1, 2004, whichever is later. The Redevelopment Plan was amended on December 20, 1994. Pursuant to the amended Redevelopment Plan, the Agency cannot establish new debt after July 12, 2008 that is twenty years after the adoption of the Redevelopment Plan. In accordance with the amended Redevelopment Plan, taxes as defined in Section 33670 of the Redevelopment Law shall not be divided and shall not be allocated to the Agency in excess of$1.11 billion except by amendment of the Redevelopment Plan. Pursuant to the 1991 Settlement Agreement as amended in 1995, various additional limitations are placed on the Redevelopment Plan, including that subject to certain exceptions, no more than $150 million of tax increment revenues shall be allotted or paid to the Agency during the term of the Plan (excluding the HousingSet-Aside amounts and certain other amounts). See "THE REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA - Limitations Under 1991 Settlement Agreement." As amended by Ordinance No. 94-33, the Redevelopment Plan restricts the amount of bonded indebtedness that may be outstanding at anyone time. The Agency may issue bonds and! or notes for any of its authorized purposes. These bonds and/or notes may be secured with a pledge of tax increment revenues. The total outstanding principal of any bonds so issued and repayable from tax increment revenues shall not exceed $340 million at anyone time, except by amendment of the Redevelopment Plan. As amended by Ordinance No. 06-11, adopted on September 26,2006, the amended Redevelopment Plan specifies that except for the non-discrimination and non-segregation provisions that continue in perpetuity, the effectiveness of the Redevelopment Plan shall expire on July 12,2029, that is forty-one years from the adoption of the Redevelopment Plan. After expiration of the effectiveness of the Redevelopment Plan, the Agency shall have no authority to act pursuant to the Redevelopment Plan except to pay previously incurred indebtedness and to enforce existing covenants, contracts and other obligations. The Agency may not receive additional tax increment revenue or pay indebtedness after July 12, 2039, except for such purposes as specifically permitted under the Redevelopment Law. Description of the Project Area The Project Area includes approximately 1,635 acres of land primarily located west ofInterstate 15 and partially straddling Interstate 15 along Winchester and Y nez Roads. The Project Area includes the Old Town area of the City along Front Street. Proceeds of the Bonds Proceeds from the sale of the 2006 Bonds will be used to (i) finance redevelopment activities within or of benefit to the Project Area; (ii) to establish a Senior Subaccount within the Reserve Account for the Series 37 A Bonds all or a portion of which may be funded by the Series A Debt Service Reserve Surety Bond in satisfaction of the Reserve Requirement for the Series A Bonds, (iii) establish a Subordinate Subaccount within the Reserve Account for the Series B Bonds in satisfaction of the Reserve Requirement for the Series B Bonds, and (iv) provide for the costs of issuing the 2006 Bonds, including the premium for the financial guaranty insurance policy and the Series A Debt Service Reserve Surety Bond. See "ESTIMATED SOURCES AND USES OF FUNDS" herein. Land Uses Land use in the Project Area includes residential, commercial, industrial, recreational, institutional, government and exempt uses. The following table represents the breakdown of land use in the Project Area by the number of parcels and by assessed value for Fiscal Year 2006-07. See "APPENDIX B - FISCAL CONSULTANT'S REPORT." TABLE 1 TEMECULA REDEVELOPMENT PROJECT NO.1 LAND USE(l) Category No. Parcels(2) Assessed Value(3) % of Total Residential 158 $47,178,613 2.64% Commercial 347 817,921,077 45.69% Industrial 228 579,381,900 32.37% Recreational 2 1,841,213 0.10% Institutional 8 24,199,972 1.35% Government 3 350,926 0.02% Exempt 114 0 0.00% Vacant Land 180 88,633,987 4.95% Possessory Interest [14] 1,353,698 0.08% Unsecured r16271 229 150 884 12.80% Totals: 1,040 $1,790,012,270 100.00% (1) The category values and parcel counts are based on the use codes assigned by the County to parcels on the lien date tax rolL (2) The numbers in brackets reflectthe number of property tax bills that are associated with these categories and not the number of parcels to which these bills are connected. (3) The lien date values reported by the Auditor-Controller do not include tax roll adjustments that have occurred after the lien date. Development in the Project Area The Redevelopment Plan provides for redevelopment within the Project Area. The Agency has identified 41 projects that are currently under construction or have been recently completed and are not yet reflected on the tax rolls. It is estimated that these projects will produce approximately $57,280,000 in new assessed value over the next two fiscal years with the majority of this new value corning onto the tax rolls for 2008-09. These new developments include hotels, office, retail and commercial buildings. For a list of these new developments and the timing of their completion, see "APPENDIX B - FISCAL CONSULTANT'S REPORT." In addition to the development listed above, there have been ten transfers of ownership that have occurred after the January 1, 2006 lien date for the current fiscal year. These transfers have resulted in an increase in value of $7,222,000 on the properties transferred. 38 Assessed Valuation The ProjectArea's aggregate base year assessed adjusted valuation is $365,093,279. The following table shows the actual assessed values for Fiscal Years 2002-03 to 2005-06 based upon the County Auditor/Controller's equalized rolls and incremental values of property within the Project Area. TABLE 2 TEMECVLA REDEVELOPMENT PROJECT NO.1 HISTORICAL VALVES Fiscal Year Base Year Secured(1) 1987-88 2002-03 2003-04 2004-05 2005-06 2006-07 Land $167,283,021 $334,703,867 $350,202,514 $370,266,437 $ 392.162.253 $ 426,934,738 Improvements 184,324,369 771,355,803 853,885,242 915,533,565 1,011,701,868 1,068,599,164 Personal Property 11,212,042 127,405,428 116,124,997 116,851,303 86,281,976 77,283,761 Exemptions (235 673) (8981781) (ll 424 324) (10113833) (9398918) (11 9562771 Total Secured $362583759 $1224483317 $1 308788429 $1392 537 472 $1 480747 179 $1560861386 Unsecured Land $ 2,211 $ 439,711 $ 396,014 $ 350,114 $ 239,344 $ 211,036 Improvements 324,497 92,068,573 90,251,575 100,100,389 87,929,361 95,845,756 Personal Property 2,225,879 101,526,177 109,944,190 125,589,549 126,621,907 133,245,303 Exemptions (41 0(7) (')11 ')9) nR lR4) (1') lmn no 41')) (] ')1 ) 1]) Total Unsecured $7 ,09 ,70 $19, nl ,07 $700 )), ,9, $770004944 $714708197 $779 1,0884 Grand T alai $365,093,279 $1,418,464,619 $1,509,341,824 $1,618,542,416 $1,695,455,376 $1,790,012,270 Incremental Value: $1,053,371,340 $1,144,248,545 $1,253,449,137 $1,330,362,097 $1,424,918,991 % Annual Change: 8.13% 8.63% 9.54% 6.14% 7.11% OJ Secured values include state assessed non-unitary utility property. Source: Fiscal Consultant's Report/County afRiverside. The Fiscal Consultant reviewed historic reported taxable values for the Project Area in order to ascertain the rate of taxable property valuation growth over the most recent ten fiscal years beginning with 1996-97. Their review revealed that the County had mistakenly included a new tax rate area in the Project Area in 1998-99. This new tax rate area included a total of 29 parcels with a combined value of$3, 719,599. The review also revealed that for 2001-02, the County included two new tax rate areas in the Agency's assessed values. The projections set forth in "COVERAGE ANALYSIS" below have been adjusted to eliminate the incorrectly included tax rate areas. See "APPENDIX B - FISCAL CONSULTANT'S REPORT - III. Project Area Assessed Values - A. Assessed Values." 39 The following table shows theten largest contributors to the Tax Increment Revenues in the Project Area. TABLE 3 TEMECULA REDEVELOPMENT PROJECT NO.1 TOP TEN TAXABLE PROPERTY OWNERS FISCAL YEAR 2006-07 Project Area Incremental Value $1,424,918,991 Project Area Total Value $1,790,012,270 % Total Project % Total Property Owner Type of Business Total Value Area Value Inc. Value Advanced Cardiovascular Systems Medical appliances mfg. $176,784,644 9.88% 12.41% Ine.(1) International Rectifiet2) Electronic mfg. 109,180,230 6.10% 7.66% T ernecula Town Center Associates Regional shopping center 95,807,765 5.35% 6.72% Inland Western T ernecula Commons Commercial shopping center 52,566,720 2.94% 3.69% Federated Retail Holdings (Macy's and Retail department stores 51,548,656 2.88% 3.62% May) Kirnco Palm Plaza Commercial shopping center 43,424,124 2.43% 3.05% DCH Investments Inc. Commercial shopping center 29,586,565 1.65% 2.08% Costeo Vv'holesale Corporation Retail store 22,656,194 1.27% 1.59% 27511 Ynez Road LLC Commercial shopping center 17,725,309 0.99% 1.24% Ridge Park Office Commercial office buildings 17706035 0.99% 1.24% $616,986,242 34.47% 43.30% (1) Advanced Cardiovascular Systems, Inc. is a subsidiary of Abbott Laboratories, which acquired Advanced Cardiovascular Systems, Inc. in April 2006, in connection with Boston Scientific Corporation's purchase of Guidant Corporation. (2) Owner has pending appeals on one or more parcels. Source: Fiscal Consultant's Report. Advanced Cardiovascular Systems has undertaken an expansion of their campus. This expansion is estimated to entail construction of at least 135,000 square feet of office space and a three story parking garage. The expansion may include as much as 180,000 square feet of office space. (Advanced Cardiovascular Systems has submitted development plans for 412,646 square feet of office and manufacturing space that is valued at over $45.3 million. This proposed building area is considerably larger than the minimum square footages specified in Advanced Cardiovascular System's agreement with the Agency.) The project will increase this property owner's assessed values significantly, and if the expansion is completed its share of the Project Area's total and incremental assessed value is likely to increase. Appeals of Assessed Values Pursuant to California law, property owners may apply for a reduction of their property tax assessment by filing a written application, in the form prescribed by the State Board of Equalization, with the appropriate county board of equalization or assessment appeals board. After the applicant and the assessor have presented their argnments, the appeals board makes a final decision on the proper assessed value. The appeals board may rule in the assessor's favor, in the applicant's favor or the appeals board may set its own opinion of the proper assessed value, which may be more or less than either the assessor's opinion or the applicant's opinion. Any reduction in the assessment ultimately granted applies to the year for which application is made and during which the written application was filed. After a reduction is allowed, the property is reviewed on an annual basis to determine its full cash value and the valuation may be adjusted accordingly. This may result in further reductions or increases in value. Such increases are in accordance with the actual cash value of the property and may exceed the maximum annual inflationary growth rate allowed on other properties 40 under Article XIIIA of the State Constitution. Once the property has regained its prior value, adjusted for inflation, it is once again subject to the annual inflationary growth rate allowed under Article XIIIA. Appeals forreduction in the "baseyear"value of an assessment, ifsuccessful, reduce the assessment for the year in which the appeal is taken and prospectively after that. The "base year" is determined by the completion date of new construction or the date of change of ownership. Any base year appeal must be made within four years of the change of ownership or new construction date. Refunds for taxpayer overpayment of property taxes may include refunds for overpayment of taxes in years after that which was appealed. Any taxpayer payment of property taxes that is based on a value that is subsequently adjusted downward will require a refund for overpayment. Assessment appeals data from the County has been reviewed by the Fiscal Consultant to determine the potential impact that pending appeals may have on the projected Tax Increment Revenues. Within the Project Area since 2000, there have been a total of95 appeals filed. Of these, 20 have been allowed with a reduction in value, 58 have been denied or withdrawn and there are 17 assessment appeals currently pending. Of the 17 pending appeals, two are appeals that have been filed by International Rectifier Corp. in Fiscal Year 2004-05 and in 2005-06. In this situation, the potential loss of value in the event of an appeal being allowed may not be cumulative. The reduction in value will be taken in the year for which the successful appeal was filed and this reduced value will be rolled forward into future years as adjusted for inflation, sales, new construction and other roll adjustments. Reductions in value on the successful appeals have totaled $71,389,376. The amount of assessed value currently under appeal is $246,921,071. Based upon the historical rate that appeals have been allowed with a reduction in value and upon the average reduction in value that has been allowed on those successful appeals, the Fiscal Consultant has estimated the loss in value that may result from the currently pending appeals. By applying these historical averages to the pending appeals, the Fiscal Consultant has estimated thatthe Agency may experience a loss of assessed value of $8,211,684 on four of the pending appeals during 2007-08. Within the top ten tax payers in the Project Area, one has filed assessment appeals that are currently pending. International Rectifier has pending appeals for the 2004-05 and 2005-06 Fiscal Years. International Rectifier is seeking a reduction of$28,555,487 (26.6%of its assessed value) for 2004-05 and a reduction of $43,319,006 (38.6% of its assessed value) for 2005-06. International Rectifier has succeeded in having its valuations reduced for 2000-01,2002-03 and 2003-04. On December 18,2003, the Appeals Board reduced the 2000-01 valuation by $19,123,556 and the 2002-03 valuation by $19,410,407 (13.44% of its assessed value). The Appeals Board reduced International Rectifier's 2003-04 value by $19,798,615 (16.60% of its assessed value) on September 2, 2004. From 2000-01 to 2004-05, International Rectifier's assessed values have been reduced from $142,246,588 to $107,285,676. This value rose slightly to $112,123,798 for 2005- 06. Where a property owner has a pending assessment appeal on the initial valuation of a new development, a successful appeal will adjust the base value for the property and that base value will carry forward into future years. The assessor typically rolls a reduction in value for a particular fiscal year forward into subsequent years with adjustments for inflation, improvements to the property and other factors. However, if the values are reduced, the taxpayer may receive property tax refunds for the cumulative reductions. See "APPENDIX B - FISCAL CONSULTANT'S REPORT." Many of the successful appeals filed in the Project Area are based on Section 51 of the Revenue and Taxation Code which requires that for each lien date the value of real property shall be the lesser of its base year value annually adjusted by the inflation factor pursuant to Article XIIIAof the State Constitution or its full cash value taking into account reductions in value due to damage, destruction, depreciation, obsolescence, removal of property or other factors causing a decline in value. Significant reductions have taken place in some counties due to declining real estate values. Reductions made under this code section may be initiated by the assessor or requested by the property owner. After a roll reduction is granted under this section, the property is reviewed on an annual basis to determine its full cash value and the valuation is adjusted accordingly. This may result in further reductions or in value increases. Such increases shall be in accordance with the actual full cash value of the property and it may exceed the maximum annual inflationary growth rate allowed on other properties under Article XIIIA of the State Constitution. Once the 41 property has regained its prior value, adjusted for inflation, it once again is subject to the annual inflationary factor growth rate allowed under Article XIIIA. Direct and Overlapping Bonded Debt The Direct and Overlapping Bonded Debt Statement of the Project Area as of June 30, 2006, is shown below. It does not include the 2006 Bonds. TABLE 4 TEMECULA REDEVELOPMENT PROJECT NO.1 SECURED PROPERTY TAX ROLL AND DIRECT AND OVERLAPPING DEBT 2005-06 Assessed Valuation: Base Year Valuation: Incremental Valuation: CITY OF TEMECULA REDEVELOPMENT AGENCY $1,698,336,068 365,093,279 $1,333,242,789 DIRECT DEBT: 2002 Tax Allocation Bonds TOTAL DIRECT DEBT Total Debt 6/30106 $27,445,000 Ratio to Incremental Valuation: 2.06% OVERLAPPING TAX AND ASSESSMENT DEBT: Metropolitan Water District Eastern Municipal Water District, J.D. No. U-8 Ternecula Valley Unified School District City ofTernecula Special Tax Obligations Rancho California Water District Rancho Division Rancho California Water District Santa Rosa Division Riverside County 1915 Act Bonds (Estimate) City ofTernecula Community Facilities District No. 88-12 TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT $389,565,000 7,530,000 46,835,000 5,490,000 4,365,000 5,495,000 13,009,493 13,140,000 OVERLAPPING GENERAL FUND DEBT: Riverside COllllty General Flllld Obligations Riverside COllllty Pension Obligations Riverside COllllty Board of Education Mt. San Jacinto Community College District General FlUld Obligations Rancho California Water District General Flllld Obligations TOTAL GROSS OVERLAPPING GENERAL FUND DEBT Less: Riverside COllllty self-supporting obligations Rancho California Water District General Flllld Obligations (77.78% self-supporting) TOTAL NET OVERLAPPING GENERAL FUND DEBT $630,525,566 396,845,000 11,240,000 7,480,000 116,700,384 GROSS COMBINED TOTAL DIRECT AND OVERLAPPING DEBT NET COMBINED TOTAL DIRECT AND OVERLAPPING DEBT Agency's Share of % Applicable (1) Debt 6/30106 100. % $27,445,000 $27,445,000 (2) 0.025% $ 97,391 14.781 1,113,009 12.010 5,624,884 16.511 906,454 5.043 220,127 0.012 659 Various 2,607,605 16.511 2,169,545 $12,739,674 0.296% $1,866,356 0.296 1,174,661 0.296 33,270 0.761 56,923 3.754 4,380,932 $7,512,142 57,990 3,407,489 $4,046,663 $47,696,816 (3) $44,231,337 (1) Percentage of overlapping agency's assessed valuation located within bOlllldaries of the agency. (2) Excludes tax allocation bonds to be sold. (3) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non-bonded capital lease obligations Ratios to 2005-06 Assessed Valuation: Gross Combined Total Direct and Overlapping Debt. . . . . . . . . . . 2.81 % Net Combined Total Direct and Overlapping Debt ............ 2.60% STATE SCHOOL BUILDING AID REPAYABLE AS OF 6/30106: $0 Source: Calijornia Municipal Statistics, Inc. 42 Project Area Pass-Through Agreements See "LIMITATIONS ON TAX INCREMENT REVENUES - Pass-Through Agreements; Other Contractual Obligations" herein for a discussion of certain Pass-Through Agreements and other contracts to which the Agency is a party. The pledge of Tax Increment Revenues by the Agency under such agreements is senior to its pledge of Tax IncrementRevenues under the Indentures to secure the repayment of the Bonds. COVERAGE ANALYSIS The following table sets forth projections of Tax Increment Revenues for the Project Area, together with the estimated debt service coverage for the 2006 Bonds to December 15,2038. These projections are based on certain assumptions, and no assurance can be given that this or any level of Tax Increment Revenues will be achieved. See "RISK FACTORS - Estimated Tax Increment Revenues" herein. 43 TABLE 5 TEMECULA REDEVELOPMENT PROJECT NO.1 Projected Debt Service Coverage') Fiscal Total 2002 2006 Estimated Excess Tax 2006 Estimated Year! Taxable Incremental Bond Senior Total Senior Debt Increment for Subordinate Subordinate Bond Value Value Gross Tax Net Tax Debt Bond Debt Service Subordinate Bond Debt Debt Service Year (OOO's) (OOO's) Increment IncrementO) Service Debt Service Service Coverage% * Obligations Service Coverage %* 2007 $1,790,012 $1,424,919 $ 14,500,816 $3,524,062 $1,784,416 $853,116 $2,637,532 1.336% $967,530 $2 I 5,820 1.235% 2008 1840152 1475059 15010524 3647825 1782216 1005293 2787509 1.309 941316 215223 1.215 2009 1911747 1546653 15738621 3824770 1784416 1002263 2786679 1.373 1119091 215223 1.274 2010 1945774 1580681 15919267 3777563 1785816 998938 2784754 1.357 1073809 280223 1.232 2011 1980482 1615389 16239450 3837316 1786416 1000313 2786729 1.3 77 1131587 282363 1.250 2012 2015884 1650791 16595135 3921364 17857 II 1001193 2786904 1.407 1215460 279213 1.279 2013 2051994 1686901 16957933 4007092 1782086 1001568 2783654 1.44 1304438 280993 1.308 2014 2088827 1723733 17327987 4094535 1783106 1001428 2784534 1.47 1391001 277468 1.337 2015 2126396 1761302 17705443 4183727 1782456 1000763 2783219 1.503 1481508 278868 1.366 2016 2164716 1799623 18090447 4274702 1785086 999563 2784649 1.535 1571053 279948 1.395 2017 2203803 1838709 18483152 4367497 1784461 100273 I 27871 92 1.567 1661306 280698 1.424 2018 2243671 1878578 18883711 4462148 178302 I 1000073 2783094 1.603 1760054 281153 1.456 2019 2284337 1919244 19292281 4558692 1784456 1001843 2786299 1.636 1853393 281308 1.486 2020 2325816 1960723 19709022 46571 67 1783456 1002719 2786175 1.672 1951992 281158 1.518 2021 2368125 2003032 20134098 4757612 1785706 997712 2783418 1.709 2055194 280698 1.553 2022 2411280 2046187 20567676 4860065 1784963 100202 I 2786983 1.744 2154082 279923 1.585 2023 2455298 2090205 21009925 4964568 1782169 1000258 2782427 1.784 2263141 278770 1.622 2024 2500196 2135103 21461020 5071160 1782325 1002630 2784955 1.821 2367205 277350 1.656 2025 2545993 2180899 21921136 5179884 1785175 998893 2784068 1.861 2476816 280663 1.690 2026 2592705 2227612 22390454 5290783 1785463 998578 2784041 1.9 2587743 278440 1.728 2027 2640352 2275258 22869159 5403900 1783188 1002307 2785495 1.94 2699405 280950 1.762 2028 2688951 2323858 23357438 5519279 1783350 999841 2783191 1.983 2817088 277850 1.803 2029 2738523 2373429 23855482 5636966 1784288 1001419 2785707 2.024 2932259 279480 1.839 2030 2789085 2423992 24363488 5757006 1782075 1001802 2783877 2.068 3054129 280570 1.879 203 I 2840660 2475566 24881653 5879447 1786713 995990 2782703 2.113 3177745 281120 1.919 2032 2893265 2528172 25410182 6004337 1782675 1004222 2786897 2.154 3298440 281130 1.957 2033 2946923 2581830 25949282 6131725 1785225 1000424 2785649 2.201 3427076 280600 2.000 2034 3001654 2636561 26499163 6261661 1783838 1000416 2784254 2.249 3558407 279530 2.044 2035 3057479 2692386 27060042 6394195 1783513 1003956 2787469 2.294 3687726 277920 2.086 2036 3114421 2749328 27632138 6529380 1783988 1000802 2784790 2.345 3825590 280770 2.130 2037 3 I 72502 2807409 28215677 6667269 0 2786196 2786196 2.393 3962073 277810 2.176 2038 3231745 2866651 28690632 6712452 0 2783502 2783502 2.412 4009950 279310 2.192 0) For a discussion of assumptions made vvith respect to the projections oftotal taxable value and Tax Increment Revenues, see APPENDIX B - FISCAL CONSULTANT'S REPORT. Among the assumptions made are an assumption of a two percent grovvth rate, an increase in values related to proferty transfers since January 1, 2006 and an increase related to 41 projects identified by the Agency that are currently llllder construction or have been recently completed and are not yet reflected on the taxro Is. It is estimated that these projects \Vill produce $58,701,000 in new assessed value over the next two fiscal years and that $19,701,000 of this new value \Vill be added on the 2007-08 tax roll and $38,999,000 \Vill be added on the 2008-09 tax roll. 0) Gross Tax Increment Revenues less housing set-aside, statutory pass-through payments and Senate bill 2557 COllllty Administrative charges. Preliminary, subject to change. SJwce: Fiscal Consultant's REpon/City ofTemecula as to assessed value and Tax Increment revenues and stone & Youngberg LLC as to debt service. 44 THE TEMECULA PUBLIC FINANCING AUTHORITY The Temecula Public Financing Authority was established pursuant to a Joint Exercise of Powers Agreement, dated April 10, 2001, by and between the City and the Agency in accordance with the provisions of the Act. The Authority was created for the purpose of providing financing for public capital improvements for the City and the Agency through the acquisition by the Authority of such public capital improvements and! or the purchase by the Authority oflocal obligations within the meaning of the Act and/or the making of secured or unsecured loans to the City or the Agency in connection with the financing of public capital improvement projects. Under the Act, the Authority has the power to purchase the 2006 Bonds and resell these to the Underwriter. The Authority has no responsibility whatsoever for repayment of the 2006 Bonds. CERTAIN LEGAL MATTERS Legal Opinions The legal opinion of Quint & Thimmig LLP, San Francisco, California, as Bond Counsel, approving the validity of the 2006 Bonds, will be made available to purchasers at the time of original delivery of the 2006 Bonds, and the proposed form thereof appears in Appendix D hereto. Bond Counsel's employment as BondCounsel is limited to a review of the legal proceedings required forthe authorization of the 2006 Bonds and to rendering the opinion set forth in Appendix D hereto. McFarlin & Anderson LLP is serving as Disclosure Counsel to the Agency. Certain legal matters will be passed upon for the Agency by Richards, Watson & Gershon, Agency Counsel. Enforceability of Remedies The remedies available to the Trustee and the registered owners of the 2006 Bonds upon an event of default under the Indentures and any other document described herein are in many respects dependent upon regulatory and judicial actions which are often subject to discretion and delay. Under existing law and judicial decisions, the remedies provided for under such documents may not be readily available or may be limited. The various legal opinions to be delivered concurrently with the delivery of the 2006 Bonds will be qualified to the extent that the enforceability of the legal documents with respect to the 2006 Bonds are subject to limitations imposed by bankruptcy, reorganization, insolvency or other similar laws affecting the rights of creditors generally and by equitable remedies and proceedings generally. CONTINUING DISCLOSURE The Agency has covenanted for the benefit of holders and beneficial owners of the 2006 Bonds to provide certain financial information and operating data relating to the Agency by not later than eight months following the end of the Agency's fiscal year (which reporting date would be March 1), commencing with the report for the 2005-06 Fiscal Year (the "Annual Report"), and to provide notices of the occurrence of certain enumerated events, if material. The Annual Report will be filed by the Agency with each Nationally Recoguized Municipal Securities Information Repository, and with the appropriate State information depository, if any. The notices of material events will be filed by the Agency with the Municipal Securities Rulemaking Board (and with the appropriate State information depository, if any). The specific nature of the information to be contained in the Annual Report or the notices of material events is set forth in the Form of Continuing Disclosure Certificate in Appendix E hereto. These covenants have been made in order to assist the Underwriters in complying with S.E.C. Rule 15c2-12(b)(5). The Agency has never failed to comply in all material respects with any previous undertakings with regard to said Rule to provide annual reports or notices of material events. 45 ABSENCE OF LITIGATION Atthe time the 2006 Bonds are delivered, the Agency will certify that, to their best knowledge, there is no litigation pending with respect to which the Agency has been served with process or knows to be threatened against the Agency in any court or other tribunal of competent jurisdiction, State or federal, which seeks to enjoin or challenges the authority of the Agency to participate in the transactions contemplated by this Official Statement, the 2006 Bonds or the Indentures. TAX MATTERS In the opinion of Quint & Thimmig LLP, San Francisco, California, Bond Counsel, under existing law, subject to the Agency's compliance with certain covenants, interest on the 2006 Bonds is excludable from gross income of the owners thereof for federal income tax purposes under Section 55 of the Code, is not includable 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 in computing an adjustment used in determining the federal alternative minimum tax for certain corporations. Failure by the Agency to comply with one or more of such covenants could cause interest on the 2006 Bonds to not be excludable from gross income under Section 103 of the Code for federal income tax purposes retroactively 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 opinionregarding any federal or state tax consequences arising with respect to the 2006 Bonds other than as expressly described above. The form of opinion Bond Counsel expects to render at the time of delivery of the 2006 Bonds is set forth in Appendix D hereto. Should the interest with respect to the 2006 Bonds become includable in gross income for federal income tax purposes, the 2006 Bonds are not subject to early redemption and will remain outstanding until maturity or until redeemed in accordance with the Indentures. Bond Counsel's opinion may be affected by action taken (or not taken) or events occurring (or not occurring) after the date hereof. Bond Counsel has not undertaken to determine, or to inform any person, whether any such actions taken or events are taken or do occur. UNDERWRITING The Agency will sell the 2006 Bonds to the Authority for immediate resale to the Underwriter. The Series ABonds are being purchased from the Authority by Stone & Youngberg LLC(the "Underwriter") on , 2006 at a purchase price of $ , (which represents the aggregate principal amount of the Series A Bonds ($ ), less an underwriting discount of $ , less a net original issue discount of $ ) and the Series B Bonds are being purchased by the Underwriter on , 2006 at a purchase price of $ , (which represents the aggregate principal amount of the Series B Bonds ($ ), less an underwriting discount of $ , less a net original issue discount of $ ). The Underwriter has agreed to purchase the 2006 Bonds at the purchase price of $ (which is the aggregate principal amount of the 2006 Bonds, less an underwriting discount of $ , less a net original issue discount of $ ). The initial public offering prices stated on the inside cover of this Official Statement may be changed from time to time by the Underwriter. The Underwriter may offer and sell the 2006 Bonds to certain dealers, banks acting as agents and others at prices lower than said public offering prices. 46 RATINGS Standard & Poor's Ratings Services has assigned its municipal bond rating of "_"to the Series A Bonds with the understanding that upon delivery of such Series A Bonds a Municipal Bond Insurance Policy insuring the payment when due of the principal of and interest on the Series ABonds will be issued by . Standard & Poor's Ratings Services has assigned an underlying municipal bond rating of " "to the Series A Bonds. Credit ratings reflect the views of the respective rating agencies and any explanation of the significance of such ratings should be obtained from the agencies. There is no assurance that any rating will not subsequently be revised or withdrawn entirely if, in the judgment of the assigning agency, circumstances so warrant. The Agency undertakes no responsibility either to bring to the attention of the Owners of the Series A Bonds any downward revision or withdrawal of such rating and any such downward revision or withdrawal could have an adverse effect on the market price of the Series A Bonds. The Agency has no obligation to maintain any rating for the Series A Bonds. The Series B Bonds are not rated by any rating agency, and the Agency does not presently intend to seek any rating of the Series B Bonds nor does the Agency anticipate that the Series B Bonds would qualify for an investment grade rating due to the structure and size of the Series A Bonds and the 2002 Bonds. PROFESSIONAL FEES In connection with the issuance of the 2006 Bonds, fees payable to certain professionals, including the Underwriter, Quint & Thimmig LLP, as Bond Counsel, Fieldman, Rolapp & Associates, as Financial Advisor, McFarlin & Anderson LLP, as Disclosure Counsel to the Agency, and U.S. Bank National Association, as Trustee, are contingent upon the issuance of the 2006 Bonds. MISCELLANEOUS The purpose of this Official Statement is to supply information to prospective buyers of the 2006 Bonds. Quotations from, and summaries and explanations of the Indentures and other documents and statutes contained herein do not purport to be complete, and reference is made to such documents, Indentures and statutes for full and complete statements of their provisions. Unless otherwise noted, all information contained in this Official Statement pertaining to the Agency, the City and the Project Area has been furnished by the Agency. Any statement in this Official Statement involving matters of opinion, whether or not expressly so stated, are intended as such and not as representations of fact. This Official Statement is not to be construed as a contract or agreement between the Agency and the purchasers or registered owners of any of the 2006 Bonds. The execution and delivery of this Official Statement has been duly authorized by the Agency. REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA By Executive Director 47 APPENDIX A SUMMARY OF CERTAIN PROVISIONS OF THE INDENTURES A-I APPENDIX B FISCAL CONSULTANT'S REPORT B-1 APPENDIX C REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA ANNUAL FINANCIAL AND COMPLIANCE REPORT FOR THE FISCAL YEAR ENDING JUNE 30, 2006 C-l APPENDIX D FORM OF OPINIONS OF BOND COUNSEL Upon delivery of the 2006Bonds, Quint & Thimmig LLP, San Francisco, California, Bond Counsel to the Temecula RedevelopmentAgency proposes to render its final approving opinions with respect to the 2006 Bonds in substantially the following forms: December ---' 2006 Redevelopment Agency of the City of Temecula 43200 Business Park Drive Temecula, California 92590 $ Redevelopment Agency of the City of Temecula Temecula Redevelopment Project No.1 2006 Tax Allocation Bonds, Series A Members of the Agency: OPINION: We have acted as bond counsel in connection with the issuance by the Redevelopment Agency of the City of Temecula (the "Agency") of its $ Redevelopment Agency of the City of Temecula Temecula Redevelopment Project No.1 2006 Tax Allocation Bonds, Series A (the "Bonds''), pursuant to the Community Redevelopment Law of the State of California (the "Law"), Resolution No. RDA 06--, adopted by the Agency on November 14, 2006, Resolution No. ----' adopted by the Authority on ,2006, and an Indenture of Trust, dated as of April 1, 2002 (the "Original Indenture"), between the Agency and U.S. Bank National Association, successor to U.S. Bank, N.A., as trustee (the "Trustee"), as supplemented by the First Supplemental Indenture of Trust, dated as of December 1, 2006 (the "First Supplement"), between the Agency and the Trustee. (The Original Indenture, as amended and supplemented by the First Supplement, is referred to in this opinion as the "Indenture"). We have examined the law and such certified proceedings and other papers as we deem necessary to render this opinion. As to questions of fact material to our opinion, we have relied upon representations of the Agency contained in the Indenture 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 Agency is duly created and validly existing as a public body, corporate and politic, with the power to enter into the Indenture, perform the agreements on its part contained therein and issue the Bonds. 2. The First Supplement has been duly approved by the Agency and constitutes a valid and binding obligation of the Agency enforceable in accordance with its terms. 3. Pursuant to the Law, the Indenture creates a valid lien on the funds pledged by the Indenture for the security of the Bonds, on a parity with the lien thereon with respect to the 2002 Bonds and any future Parity Debt, as such terms are defined in the Indenture. 4. The Bonds have been duly authorized, executed and delivered by the Agency and are valid and binding special obligations of the Agency, payable solely from the sources provided therefor in the Indenture. 5. Subject to the Agency'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 of the Code, is not included as an item of tax preference in computing the federal alternative minimum tax for individuals and corporations D-l under the Code, but is taken into account in computing an adjustment used in determining the federal altemativeminimum tax for certain corporations. Failure by the Agency 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 federal income tax purposes retroactively to the date of issuance of the Bonds. 6. Interest on the Bonds is exernptfrom 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 and the Indenture may be subject to bankruptcy, insolvency, reorganization, moratorium and other similar laws affecting creditors' rights 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 Agency and others with respect to certain material facts. Our opinion represents our legaljudgrnent based upon such review of the law and the facts that we deem relevant to render our opinion and is not a guarantee of a 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, D-2 December ---' 2006 Redevelopment Agency of the City of Temecula 43200 Business Park Drive Temecula, California 92590 $ Redevelopment Agency of the City of Temecula Temecula Redevelopment Project No. 1 2006 Tax Allocation Bonds, Series B (Subordinate Lien) Members of the Agency: OPINION: We have acted as bond counsel in connection with the issuance by the Redevelopment Agency of the City of Temecula (the "Agency") of its $ Redevelopment Agency of the City of Temecula Temecula Redevelopment Project No. 1 2006 Tax Allocation Bonds, Series B (Subordinate Lien) (the "Bonds"), pursuantto the Community RedevelopmentLaw of the State of California (the "Law"), Resolution No. RDA 06-_, adopted by the Agency on November 14,2006, Resolution No. _, adopted by the Agency on , 2006, and an Indenture of Trust, dated as of December 1, 2006 (the "Indenture"), between the Agency and U.S. Bank National Association, as trustee. We have examined the law and such certified proceedings and other papers as we deem necessary to render this opinion. As to questions of fact material to our opinion, we have relied upon representations of the Agency contained in the Indenture 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 Agency is duly created and validly existing as a public body, corporate and politic, with the power to enter into the Indenture, perform the agreements on its part contained therein and issue the Bonds. 2. The Indenture has been duly approved by the Agency and constitutes a valid and binding obligation of the Agency enforceable in accordance with its terms. 3. Pursuant to the Law, the Indenture creates a valid lien on the funds pledged by the Indenture for the security of the Bonds, on a parity with the lien thereon with respect to any Parity Debt, as such term is defined in the Indenture. 4. The Bonds have been duly authorized, executed and delivered by the Agency and are valid and binding special obligations of the Agency, payable solely from the sources provided therefor in the Indenture. 5. Subject to the Agency'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 of the 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 in computing an adjustment used in determining the federal alternativeminirnum tax for certain corporations. Failure by the Agency 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 federal income tax purposes retroactively to the date of issuance of the Bonds. 6. 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 D-3 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 and the Indenture may be subjectto bankruptcy, insolvency, reorganization, moratorium and other similar laws affecting creditors' rights 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 Agency and others with respect to certain material facts. Our opinion represents our legaljudgrnent based upon such review of the law and the facts that we deem relevant to render our opinion and is not a guarantee of a 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, D-4 APPENDIX E FORM OF CONTINUING DISCLOSURE CERTIFICATE E-l APPENDIX F GENERAL INFORMATION REGARDING THE CITY General Information Following avote 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 and recreation services to the citizens of Temecula, as well as street lighting and slope maintenance in certain areas of the district. Other governmental entities, such as the State of California, the County of Riverside 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 10th largest city in the Inland Empire and the 4th largest in Riverside County, encompassing 30.15 square miles. The City of Temecula is 85 miles southeast of Los Angeles, 60 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. Population From 1994- 2006, the City's population grew from 35,771 to 93,923, a gain of 58,152 or 162.6%. In this same period, Riverside County added 621,332, a gain of 46.6%. CITY OF TEMECULA AND COUNTY OF RIVERSIDE POPULATION FROM 1994 TO 2005 T ernecula Riverside County Year Population % Change Population % Change 1994 35,771 1,331,998 1995 39,284 9.8 1,355,571 1.8 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' 61,792 14.9 1,590,186 4.4 2002 73,148 18.4 1,653,847 4.0 2003 75,977 3.9 1,726,321 4.4 2004 78,831 3.8 1,807,624 4.7 2005 81,921 3.9 1,888,311 4.5 2006" 93,923 14.7 1,953,330 3.4 Includes annexation a/Vail Ranch area. Includes annexation of Red hawk area. Source: California Department of Finance. F-l Construction Activity The following table shows a five year history of construction activity in the City. CITY OF TEMECULA BUILDING PERMITS AND VALUATIONS (Calendar Year 2001 - 2005) 2001 2002 2003 2004 2005 Valuation ($000): Residential $127,823,375 $100,516,115 $194,699,509 $185,041,089 $261,657,164 Non-residential 39,603,913 43,487,229 36,087,001 56,658,233 73,749,612 Total $167426288 $144003344 $230 786 510 $241 699 322 $335 406 776 Residential Units: Single family 944 650 1271 888 996 Multiple family -0- -0- ill 408 360 Total 944 650 1413 1296 1356 Source: Construction Industry Research Board. The following table shows historical commercial and residential construction and property values. CITY OF TEMECULA COMMERCIAL AND RESIDENTIAL CONSTRUCTION AND PROPERTY VALUES 1996 - 2005 Commercial Construction(1) Residential Construction(1) Property Values(2) Number Number Fiscal Year of Permits Value of Units Value Commercial Residential 1996 136 23,572 987 93,674 1,478,230 1,677,720 1997 202 32,863 857 85,257 1,347,000 1,856,203 1998 203 66,226 835 105,527 1,321,044 1,958,706 1999 337 159,286 1,384 180,840 1,378,364 2,067,549 2000 437 52,497 1,179 148,660 1,524,091 2,303,303 2001 265 39,511 1,606 169,687 1,935,537 2,627,716 2002 252 51,686 938 97,773 2,183,862 3,017,148 2003 304 41,402 1,162 145,387 2,633,661 4,127,318 2004 116 79,579 918 241,322 2,757,407 4,808,116 2005 513 49,777 1,354 246,466 2,894,954 6,895,413 Values in thousands of dollars. Source: (1) City ofTemEcula, Building and Safety DepartmEnt. (2) County Land Use Statistical Recap Report. F-2 Direct and Overlapping Bonded Debt The statement of direct and overlapping debt (the "Debt Report") set forth below was prepared by California Municipal Statistics, Inc. as of June 30, 2006. The Debt Report includes only such information as has been reported to California Municipal Statistics, Inc. by the issuers of the debt described therein and by others. The Debt Report is included for general information purposes only. The City takes no responsibility for its completeness or accuracy. DIRECT AND OVERLAPPING BONDED DEBT (As of June 30, 2006) CITY OF TEMECULA CITY OF TEMECULA 2005-06 Assessed Valuation: Redevelopment Incremental Valuation: Adjusted Assessed Valuation: $10,286,222,803 1 333 242 789 $ 8,952,980,014 OVERLAPPING TAX AND ASSESSMENT DEBT: Metropolitan Water District Eastern Municipal Water District, J.D. No. U-8 Temecula Valley Unified School District Rancho California Water District, Rancho Division Rancho California Water District, Santa Rosa Division Rancho California Water District Community Facilities District No. 88-3 City of Temecula Special Tax Obligations Eastern Municipal Water District Community Facilities District No. 2002-04- Eastern Municipal Water District Community Facilities District No. 2002-08 Temecula Community Facilities District No. 88-12 Temecula Public Financing Authority ConlImmity Facilities District No. 01-2 Temecula Public Financing Authority ConlImmity Facilities District No. 03-1 Temecula Public Financing Authority ConlImmity Facilities District No. 03-2 Temecula Public Financing Authority ConlImmity Facilities District No. 03-3 Temecula Public Financing Authority ConlImmity Facilities District No. 03-6 Temecula Valley Unified School District Community Facilities District No. 2002-1, I.A. No. County 1915 Act Bonds (Estimated) City ofTemecula 1915 Act Bonds TOTAL DIRECT AND OVERLAPPING TAX AND ASSESSrvIENT DEBT OVERLAPPING GENERAL FUND DEBT: Riverside COlmty General Fund Obligations Riverside COlmty Pension Obligations Riverside COlmty Board of Education Certificates of Participation Mt. San Jacinto Community College District General Fund Obligations Rancho California Water District General Flll1d Obligations TOTAL GROSS OVERLAPPING GENERAL FUND DEBT Less: Riverside COlll1ty self-supporting obligations Rancho California Water District General Flll1d Obligations (77.78<>/0 self-supporting) TOTAL NET OVERLAPPING GENERAL FUND DEBT GROSS COMBINED TOTAL DEBT NET COMBINED TOTAL DEBT Total Debt 6/30106 $389,565,000 7,530,000 46,835,000 4,365,000 5,495,000 4,435,000 5,490,000 855,000 4,905,000 13,140,000 17,310,000 15,670,000 51,250,000 30,490,000 4,845,000 7,430,000 52,396,493 1,100,000 $630,525,566 396,845,000 11,240,000 7,480,000 116,700,384 %Annlicable ill 0.612% 85.749 70.124 76.956 5.255 100. 100. 100. 100. 100. 100. 100. 100. 100. 100. 57.435 Various 100. 7.257% 7.257 7.257 18.665 58.584 (2) City's Share of Debt 6/30106 $--n84,138 6,456,900 32,842,575 3,359,129 288,762 4,435,000 5,490,000 855,000 4,905,000 13,140,000 17,310,000 15,670,000 51,250,000 30,490,000 4,845,000 4,267,421 29,743,032 1100000 $228,831,957 $ 45,757,240 28,799,042 815,687 1,396,142 68,367,753 $145,135,864 1,421,726 53176438 $ 90,537,700 $373,967,821 $319,369,657 (l)Percentage of overlapping agency's assessed valuation located within boundaries of the city. (2)Excludes tax and revenue anticipation notes, enteIprise revenue, mortgage revenue and tax allocation bonds and non-bonded capital lease obligations. Ratios to 2005-06 Assessed Valuation: Direct-Debt ($5,490,000) ~............................ 0.05% Total Direct and Overlapping Tax and Assessment Debt. 2.22% Ratios!&. Adiusted Assessed Valuation: Gross Combined Total Debt. 4.18<>/0 Net Combined Total Debt 3.57% STATE SCHOOL BUILDING AID REPAYABLE AS OF 6/30106: $0 SOurce: California Municipal Statistics, Inc. F-3 Economic Condition and Outlook 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 andNissan. The following tables set forth major manufacturing and non-manufacturing employers: CITY OF TEMECULA LARGEST EMPLOYERS BY NUMBER OF EMPLOYEES (As of June 30, 2006) Employer Advanced Cardiovascular Systems, Inc. Iemecula Valley Unified School District Professional Hospital Supply International Rectifier Milgard Manufacturing Norm Reeves Auto Group Coste 0 Wholesale Corporation Channell Commercial Corp. Chern i-Con International Sears Albertsons Plant Equipment, Inc. Robinson's May I emecula Creek Inn JC Penney Company City of I emecula Dayton Hudson Corporation; Iarget Home Depot Opto 22, Inc. Ioyota of Iemecula Valley Approximate No. of Employees Type of Business Medical equipment Public school system Medical equipment and supplies Power semi-conductors Windows Auto Dealer \Vholesale warehouse Cable enclosures Manufacturing Retail Supennarket I elephone equipment Retail Hotel Retail Municipal corporation Retail Retail Manufacturing Auto Dealer 3,481 2,512 1,352 620 550 360 354 300 300 270 260 245 230 222 221 208 200 200 200 186 Source: City Finance Deparlment. Financial Information The City's financial records for general governmental operations are maintained on a modified accrual basis, with revenues recorded when available and measurable and expenditures recorded when the services or goods are received and the liability incurred. Management of the City is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the government are protected from loss, theft or misuse and to ensure that adequate accounting data are compiled to allow the preparation of financial statements in conformity with generally accepted accounting principles. The internal control structure is designed to provide reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable assurance recognizes that: (1) the cost of the control should not exceed the benefits likely to be derived; and (2) the valuation of costs and benefits requires estimates and judgments by management. Budgetary Policy and Control F-4 Budgets are adopted annually by the City Council by resolution and are prepared for each fund in accordance with its basis of accounting. As provided by City ordinance, the Finance Officer is responsible forpreparing the budget and for its implementation after adoption. All appropriations lapse at year end. The City Manager has the legal authority to transfer operating budget appropriations within a budgetary department provided that total appropriations for a department are not changed. Changes to total departmental appropriations require the majority approval of the City Council. The City maintains budgetary controls to ensure compliance with legal provisions embodied in the annual budget adopted by the City Council. The level of budgetary control (that is, the level at which expenditures cannot legally exceed the appropriated amount) is established by department. Sales Tax Assessed Values The City of Temecula provides high quality services to residents. 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. CITY OF TEMECULA SALES TAX HISTORY Year Amount 1989-90 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 $632,153 $9,186,547 $10,652,400 $14,009,321 $16,321,929 $19,237,317 $21,572,199 $25,392,314 $26,070,553 $30,155,213 Source: City oj Temecula. F-S CITY OF TEMECULA PRINCIPAL SECURED PROPERTY OWNERS FOR THE YEAR ENDED JUNE 30, 2007 2007 Assessed Percent of Valuation Total Assessed Taxpayer Type of Business (in thousands) lVahmtion) Advanced Cardiovascular System Inc. Medical Appliances Mfg. $175,217 1.55% International Rectifier Corporation Electronics Mfg. 109,180 0.96 T ernecula Towne Center Associates Regional Shopping Center 96,197 0.85 Woodside Wolf Creek Inc. Vacant Residential Land 82,135 0.73 MY Housing Partners III Vacant Residential Land 63,773 0.56 Inland Western Ternecula Commons Commercial Shopping Center 52,567 0.46 Lakha Properties I emecula Commercial Shopping Property 49,419 0.44 Federated Retail Holdings Inc. Retail Stores 47,490 0.42 Kimco Palm Plaza Commercial Shopping Center 43,424 0.38 Wolf Creek Development Vacant Residential Land 4) 9')8 Q.3B, Iotals $762,360 6.73% Source: Hdl Coren & Cone CITY OF TEMECULA ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY FOR THE FISCAL YEARS ENDED JUNE 30, 2001 THROUGH 2007 (Values in Thousands) Total Net Total Estimated Fiscal Secured and Real Estate Net Taxable Homeowners Assessed Actual Year Unsecured Exemptions Assessed Value Exemption Value Value 2001 $4,563,253 $(29,666) $4,533,587 $(64,372) $4,469,215 $4,469,215 2002 5,201,010 (33,360) 5,167,650 (68,938) 5.098,712 5,098,712 2003 6,201,896 (30,010) 6,171,886 (82,926) 6,088,960 6,088,960 2004 6,931,291 (43,142) 6,888,149 (92,362) 6,795,787 6,795,787 2005 7,794,688 (53,240) 7,741,448 (94,237) 7,647,211 7,647,211 2006 10328098 -51722 10276375 -108654 10167721 10167721 2007 11836051 -75481 11760570 -111392 11649178 11649178 Source: Riverside County Assessor's Qffice/Hdl Coren & Cone. General Information IndWitrialRealEstate. 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 square feet of space . Among local cities, this ranked tenth, above Moreno V alley(25,890 square feet) and below San Bernardino (804,451 square feet). F-6 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 May, 2006, there were twenty (20) wineries which produce wine with locally grown grapes. Climate. Temecula Valley 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. Thequality of airin 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 2 alternative schools), 6 middle schools, 2 charter schools, 1 horne-schooling program, 17 elementary schools and 1 adult school. In addition, there are 9 private schools and several pre-schools. The general boundaries extend north to JeanNicholas 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. As of May, 2005, approximately 25,653 students (Grades K-12) are 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 figures 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, 4miles north ofInterstate 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 Orange 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 15 freeway. Normally, a Southern California community undergoes rapid growth only when population spills from Orange 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 March, 2004 annexation of the community of Redhawk, which became official June 30, 2005. F-7 APPENDIX G SPECIMEN MUNICIPAL BOND INSURANCE POLICY G-l APPENDIX H BOOK-ENTRY SYSTEM Thefollowingdescription 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 2006 Bonds, confirmation and transfer of beneficial ownership interests in the 2006 Bonds and other Bond-related transactions by and betweenDTC, Direct Participants, Indirect Participants and Beneficial Owners of the 2006 Bonds is based solely on information furnished by DTC to theAgencywhich the Agency believes to be reliable, but the Agency and the Underwriter do not and cannot make any independent representations concerning these matters and do not take responsibility for the accuracy or completeness thereof Neither theDTC, DirectParticipants, Indirect Participants nor the Beneficial Owners should rely on theforegoing 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 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 ofDTC. One 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 of the Securities Exchange Act of 1934. DTC holds and provides asset servicing for over 2.2 million issues of US. and non-US. 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 US. andnon-US. 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, FICC, and EMCC, also subsidiaries of DTCC), 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 US. and non-US. 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 (the "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 informationaboutDTC can be found atwww.dtcc.com and www.dtc.org. Purchases of 2006 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 Owners will not receive written confirmation from DTC of their purchase. Beneficial Owners 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 Owner 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 withDTC are registered in the name ofDTC's partnership nominee, Cede & Co. or such other name as requested by an authorized representative ofDTC. The deposit of the 2006 Bonds with DTC and their registration in the name of Cede H-l & Co. or such other DTC nominee do not effect any change in beneficial ownership. DTC has no knowledge of the actual Beneficial Owners of the 2006 Bonds; DTC's records reflect only the identity of the Direct Participants to whose accounts such Bonds are credited, which mayor may not be the Beneficial Owners. The Direct or Indirect Participants will remain responsible for keeping account of their holdings on behalf of their customers. Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to IndirectParticipants, and by DirectParticipants and IndirectParticipants to Beneficial Owners will be governed by arrangements among them, subject to any statutory or regulatory requirements as may be in effect from time to time. Beneficial Owners of 2006 Bonds may wish to take certain steps to augment the transmissions to them of notices of siguificant 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. In the alternative, Beneficial Owners may wish to provide their names and addresses to the Trustee and request that copies of notices be provided directly to them. Redemption notices shall be sent to DTC. If less 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 respectto the 2006Bonds unless authorized bya Direct Participant in accordance with DTC's Procedures. Under its usual procedures, DTC mails an Omnibus Proxy to the Agency as soon as possible after the record date. The Omnibus Proxy assigus 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 of DTC. DTC's practice is to credit Direct Participants' accounts upon DTC' s receipt of funds and corresponding detail information from the Agency or the Trustee, on payable date in accordance with their respective holdings shown on DTC's records. Payments by Participants to Beneficial Owners 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 Trustee or the Agency, subject to any statutory or regulatory 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 ofDTC) is the responsibility of the Trustee, disbursement of such payments to Direct Participants will be the responsibility of DTC, 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 Agency or the Trustee. 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 Agency may decide to discontinue use of the system of book-en try-only transfers throughDTC (or a successor securities depository). In that event, the 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 Agency believes to be reliable, but the Agency takes no responsibility for the accuracy thereof. H-2 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 Agency determines that DTC shall no longer act and delivers a written certificate to the Trustee to that effect, then the Agency will discontinue the Book-Entry System with DTC for the 2006 Bonds. If the Agency determines to replace DTC with another qualified securities depository, the Agency 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 of the Indentures. If the Agency 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 eventthat 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 Trustee identified in the Indentures, and (iii) the 2006 Bonds will be transferable and exchangeable as provided in the Indentures. TheAgencyand the TrWitee do not have any responsibility or obligation toDTC Participants, to the personsforwhom 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 the Indentures; (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 Indentures. The Agency and the Trustee 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 owner, or any notices to the Beneficial Owners or that they will doso on a timely basis or will serve and act in a manner described in this Official Statement. The Agency and the TrWitee are not responsible or liable for the failure of DTC 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. H-3 FIRST SUPPLEMENTAL INDENTURE OF TRUST Redevelopment Agency of the City of Temecula Temecula Redevelopment Project No.1 2006 Tax Allocation Bonds Quint & Thimmig LLP 9/26/06 10/13/06 10/24/06 10/25/06 FIRST SUPPLEMENTAL INDENTURE OF TRUST by and between the REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA and U.S. BANK NATIONAL ASSOCIATION, as Trustee Dated as of December 1, 2006 Relating to: $ Redevelopment Agency of the City of Temecula Temecula Redevelopment Project No.1 2006 Tax Allocation Bonds, Series A 2000S.04:J9025 SECTION 1. Section 10.01. Section 10.02. Section 10.03. Section 10.04. Section 10.05. Section 10.06. Section 10.07. Section 10.08. Section 10.09. Section 10.10. Section 10.11. Section 10.12. Section 10.13. Section 10.14. SECTION 2. SECTION 3. SECTION 4. SECTION 5. SECTION 6. TABLE OF CONTENTS Supp lemen t to Original Indenture............................................................................................... 2 ARTICLE X 2006 BONDS Delini tions .......................................................................................................... 2 A uthoriza tion of 2006 Bonds............................................................................ 4 Terms of 2006 Bonds......................................................................................... 4 Redemption ........................................................................................................ 5 Form of 2006 Bonds; Authentication and Delivery....................................... 8 Application of Proceeds of Sale of 2006 Bonds.............................................. 8 2006 Costs of Issuance Fund............................................................................. 9 Deposit and Investment of Moneys in Funds ................................................ 9 Security for 2006 Bonds................................................................................... 10 Federal Tax Covenants.................................................................................... 10 Con tin uing Disclosure.................................................................................... 10 Payment Procedure Pursuant to the 2006 Municipal Bond Insurance Policy............................................................................................... 11 Rights of 2006 Bond Insurer ........................................................................... 12 Effect of this Article X..................................................................................... 13 A ttachmen t of Exhibit B .............................................................................................................. 14 Additional Amendments to Original Indenture ......................................................................14 Partial Invalidity..................................................................................................................... ...... 17 Execution in Counterparts.......................................................................................................... 17 Governing Law........................................................................................................................... .. 17 EXHIBIT A - FORM OF 2006 BONDS FIRST SUPPLEMENTAL INDENTURE OF TRUST THIS FIRST SUPPLEMENTAL INDENTURE OF TRUST (this "First Supplement"), dated as of December 1, 2006, is by and between the REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA, a public body, corporate and politic, duly organized and existing under the laws of the State of California (the "Agency"), and U.s. BANK NATIONAL ASSOCIATION, a national banking association, successor to U.s. Bank, N.A., as trustee (the "Trustee") under an Indenture of Trust, dated as of April 1, 2002 (the "Original Indenture") by and between the Trustee and the Agency. RECITALS: WHEREAS, the Agency is a public body, corporate and politic, duly established and authorized to transact business and exercise powers under and pursuant to the provisions of the Community Redevelopment Law of the State of California (the "Redevelopment Law"), including the power to issue bonds for any of its corporate purposes; and WHEREAS, a redevelopment plan for the Agency's Temecula Redevelopment Project No. 1 (the "Redevelopment Project") has been adopted under the Redevelopment Law pursuant to all applicable requirements of the Redevelopment Law; and WHEREAS, the Agency has issued its $28,055,000 initial principal amount of Redevelopment Agency of the City of Temecula Temecula Redevelopment Project No.1 2002 Tax Allocation Bonds (the "2002 Bonds") for the purpose of refunding in full the Agency's Temecula Redevelopment Project No.1 1993 Tax Allocation Bonds, Series A, discharging an obligation of the Agency to the County of Riverside under an Amended and Restated Agreement Between the County of Riverside, the Redevelopment Agency of the County of Riverside, the City of Temecula and the Redevelopment Agency of the City of Temecula for Reimbursement and Distribution of Tax Increment Funds from the Temecula Redevelopment Project, dated January 22, 2002 (consisting of the payment to the County of $6,000,000), and financing redevelopment activities within or of benefit to the Redevelopment Project, all as provided in the Original Indenture; and WHEREAS, Section 3.05 of the Original Indenture authorizes the issuance by supplemental indenture of Parity Debt (as defined in the Original Indenture) secured under the Original Indenture on a parity with the 2002 Bonds; and WHEREAS, after due investigation and deliberation the Agency has determined that it is in the interests of the Agency at this time to provide for the issuance of its Redevelopment Agency of the City of Temecula Temecula Redevelopment Project No.1 2006 Tax Allocation Bonds, Series A in the initial aggregate principal amount of $____ (the "2006 Bonds"), all to be secured under the Original Indenture on a parity with the 2002 Bonds, to finance redevelopment projects of the Agency; and WHEREAS, this First Supplement is a "Supplemental Indenture" within the meaning of the Original Indenture and the 2006 Bonds are "Parity Debt" within the meaning of the -1- Original Indenture and are secured under the Original Indenture on a parity with the 2002 Bonds; and WHEREAS, concurrently with the issuance of the 2006 Bonds, the Agency is issuing its Redevelopment Agency of the City of Temecula Temecula Redevelopment Project No.1 2006 Tax Allocation Bonds, Series B (Subordinate Lien) (the "Subordinate Bonds"), pursuant to an Indenture of Trust, dated as of December 1, 2006, between the Agency and U.s. Bank National Association, as trustee, which bonds are secured by a pledge of the Tax Increment Revenues (as defined herein) which is subordinate to the pledge of Tax Increment Revenues under the Original Indenture, as supplemented and amended by this First Supplement, to secure the repayment of the 2002 Bonds, the 2006 Bonds and any other Parity Debt (as defined in the Original Indenture); and WHEREAS, the Agency and the Trustee desire to enter into this First Supplement pursuant to Sections 7.01(c) of the Original Indenture to provide for the issuance of the 2006 Bonds; and WHEREAS, in providing for the issuance of the 2006 Bonds, it is necessary to supplement and amend the Original Indenture, as more particularly provided in Section 1 and Section 2 hereof, as such supplements and amendments are authorized by Section 7.01 of the Original Indenture; and WHEREAS, the Agency has determined that all acts and proceedings required by law necessary to make the 2006 Bonds, when executed by the Agency, authenticated and delivered by the Trustee and duly issued, the valid, binding and legal special obligations of the Agency, and to constitute the Original Indenture, as amended and supplemented by this First Supplement, a valid and binding agreement for the uses and purposes herein and therein set forth in accordance with its terms, have been done or taken. AGREEMENT: NOW, THEREFORE, in consideration of the premises and the mutual agreements herein contained, and for other consideration the receipt and sufficiency of which are hereby acknowledged, the parties hereto do hereby agree as follows: SECTION 1. Supplement to Original Indenture. In accordance with the provisions of Section 7.01 (c) of the Original Indenture, the Original Indenture is hereby amended by adding a supplement thereto consisting of a new article to be designated as Article X. Such Article X shall read in its entity as follows: ARTICLE X 2006 BONDS Section 10.01. Definitions. Unless the context otherwise requires, the terms defined in this Section 10.01 shall, for all purposes of this Article X but not for any other purposes of this Indenture, have the respective meanings specified in this Section 10.01. All terms defined in -2- Section 1.01 of this Indenture and not otherwise defined in this Section 10.01 shall, when used in this Article X, have the respective meanings given to such terms in Section 1.01. "Article X" means this Article X which has been incorporated in and made a part of this Indenture pursuant to the First Supplemental Indenture of Trust, dated as of December 1, 2006, by and between the Agency and the Trustee, together with all amendments of and supplements to this Article X entered into pursuant to the provisions of Section 7.01. "Closing Date" means December _, 2006, being the date upon which there was a physical delivery of the 2006 Bonds in exchange for the amount representing the purchase price of the 2006 Bonds by the Original Purchaser. "Code" means the Internal 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 2006 Bonds, together with applicable proposed, temporary and final regulations promulgated, and applicable official public guidance published, under the Code. "Continuing Disclosure Certificate" means that certain Continuing Disclosure Certificate of the Agency dated as of the Closing Date with respect to the 2006 Bonds and the Subordinate Bonds (as defined in the seventh recital to the First Supplemental Indenture of Trust, dated as of December 1, 2006, between the Agency and the Trustee), as originally executed and as it may be amended from time to time in accordance with the terms thereof. "2006 Bonds" means the Agency's Redevelopment Agency of the City of Temecula Temecula Redevelopment Project No.1 2006 Tax Allocation Bonds, Series A authorized by and at any time Outstanding pursuant to this Indenture. "2006 Bond Insurer" means Municipal Bond Insurance Policy. ____f a _____, as Issuer of the 2006 "2006 Costs of Issuance" means all items of expense directly or indirectly payable by or reimbursable to the Agency relating to the authorization, issuance, sale and delivery of the 2006 Bonds, including but not limited to printing expenses, premiums for any municipal bond insurance policy or reserve account surety bond that may be purchased, rating agency fees, filing and recording fees, initial fees, expenses and charges of the Trustee and its counsel (including the Trustee's first annual administrative fee), fees, charges and disbursements of attorneys including bond counsel, Agency counsel and disclosure counsel, financial advisors, accounting firms, fiscal consultants and other professionals, fees and charges for preparation, execution and safekeeping of the 2006 Bonds and any other cost, charge or fee in connection with the original issuance of the 2006 Bonds. "2006 Costs of Issuance Fund" means the fund by that name established and held by the Trustee pursuant to Section 10.07. "2006 Debt Service Reserve Surety Bond" means the debt service reserve account surety bond issued by the 2006 Bond Insurer on the Closing Date pursuant to the 2006 Financial Guaranty Agreement. -3- "2006 Financial Guaranty Agreement" means the Financial Guaranty Agreement, dated as of the Closing Date, between the 2006 Bond Insurer and the Agency. "2006 Municipal Bond Insurance Policy" means the financial guaranty insurance policy with respect to the 2006 Bonds issued by the 2006 Bond Insurer and insuring the payment when due of the principal of and interest on the 2006 Bonds as provided therein. "2006 Term Bonds" means, collectively, the 2006 Bonds maturing on August 1 in the years __ and 2038. "Original Purchaser" means Stone & Youngberg LLC, the first purchaser of the 2006 Bonds upon their delivery by the Trustee on the Closing Date. Section 10.02. Authorization of 2006 Bonds. 2006 Bonds in the aggregate principal amount of ____ Million ____ Hundred ____ Thousand Dollars ($____), are hereby authorized to be issued by the Agency as Parity Debt under and subject to the terms of this Indenture and the Redevelopment Law. This Indenture constitutes a continuing agreement with the Owners of all of the 2006 Bonds issued hereunder and then Outstanding to secure the full and final payment of principal and premium, if any, and interest on all 2006 Bonds which may from time to time be executed and delivered hereunder, subject to the covenants, agreements, provisions and conditions herein contained. Section 10.03. Terms of 2006 Bonds. The 2006 Bonds shall be issued in fully registered form without coupons in denominations equal to $5,000 or any integral multiple thereof. No 2006 Bond shall have more than one maturity date. The 2006 Bonds shall be dated the Closing Date, and shall mature and become payable on August 1 in the following years and shall bear interest at the following interest rates (based on a 360-day year comprised of twelve 30-day months): Year (August 1) Principal Amount Interest Rate Per Annum Interest on the 2006 Bonds shall be payable on each Interest Payment Date commencing February 1, 2007. Each 2006 Bond shall bear interest from the Interest Payment Date next preceding the date of authentication thereof, unless: (a) it is authenticated after the close of -4- business on the applicable Record Date and on or before the following Interest Payment Date, in which event it shall bear interest from such Interest Payment Date; or (b) it is authenticated on or before January 15, 2007, in which event it shall bear interest from the Closing Date; or (c) if, as of the date of authentication of any 2006 Bond, interest thereon is in default, in which event such 2006 Bond shall bear interest from the date to which interest has previously been paid or made available for payment thereon. Subject to the provisions of Section 2.10, the principal of and premium, if any, on the 2006 Bonds shall be payable upon presentation and surrender of such 2006 Bonds at maturity or earlier redemption at the Office of the Trustee. The principal of, premium (if any) and interest on the 2006 Bonds shall be payable in lawful money of the United States of America. Payment of the interest on any 2006 Bond shall be made to the person whose name appears on the Bond registration books of the Trustee as the Owner thereof as of the close of business on the Record Date immediately prior to such Interest Payment Date by check mailed on each Interest Payment Date by first class mail to the Owner at his address as it appears on such registration books, or by wire transfer to Owners of $1,000,000 or more in aggregate principal amount of 2006 Bonds at such wire transfer address in the Untied States as such Owner shall specify in a written notice requesting payment by wire transfer delivered to the Trustee prior to the Record Date. Any interest not paid when due or duly provided for shall forthwith cease to be payable to the registered Owner as of the Record Date immediately preceding the applicable Interest Payment Date and shall be paid to the person in whose name the 2006 Bond is registered as of the close of business on a special record date for the payment of such defaulted interest to be fixed by the Trustee. The Trustee shall give notice of such special record date to the Owner not less than 10 days prior thereto. Section 10.04. Redemption. (a) Optional Redemption. The 2006 Bonds maturing on or before August 1, __, shall not be subject to optional redemption prior to maturity. The 2006 Bonds maturing on or after August 1, __, shall be subject to redemption in whole, or in part among such maturities as shall be determined by the Agency, and in any case by lot within a maturity, at the option of the Agency, on any date on or after August 1, __, from any available source of funds, at a redemption price (expressed as a percentage of the principal amount of the 2006 Bonds to be redeemed) as follows, in each case together with accrued interest thereon to the redemption date. Redemption Periods August 1, __ through July 31,__ August 1, __ through July 31,__ August 1, __ and thereafter Redemption Price % No optional redemption of the 2002 Bonds may occur, however unless all amounts owed to the 2006 Bond Insurer under the Financial Guaranty Agreement have been paid in full. -5- The Agency shall be required to give the Trustee written notice of its intention to redeem 2006 Bonds and of the annual maturities determined to be redeemed under this subsection (a) at least forty-five (45) days prior to the date fixed for such redemption, unless the Trustee otherwise agrees to a shorter period for such notice. (b) Sinking Account Redemption. The 2006 Term Bonds shall be subject to redemption in part by lot on August 1 in each of the years set forth in the following tables from Sinking Account payments made by the Agency pursuant to Section 4.03(c), at a redemption price equal to the principal amount thereof to be redeemed together with accrued interest thereon to the redemption date, without premium, or in lieu thereof shall be purchased pursuant to the succeeding paragraph of this subsection (b), in the aggregate respective principal amounts and on the dates as set forth in the following table; provided however, that if some but not all of the 2006 Bonds to be redeemed pursuant to this subsection (b) have been redeemed pursuant to subsection (a) above, the total amount of all future Sinking Account payments with respect to such 2006 Bonds shall be reduced by the aggregate principal amount of such 2006 Bonds so redeemed, to be allocated among such Sinking Account payments in integral multiples of $5,000 as determined by the Agency (notice of which determination shall be given by the Agency to the Trustee). 2006 Bonds Maturing on August 1, __ Sinking Account Principal Amount Redemption Date To Be Redeemed (August 1) or Purchased 2006 Bonds Maturing on August 1, 2038 Sinking Account Principal Amount Redemption Date To Be Redeemed (August 1) or Purchased In lieu of redemption of any 2006 Term Bonds pursuant to the preceding paragraph, amounts on deposit in the Special Fund (to the extent not required to be transferred to the Trustee or the trustee for any Parity Debt pursuant to any Parity Debt Instrument during the then current Bond Year) may also be used and withdrawn by the Agency at any time for the purchase of 2006 Term Bonds at public or private sale as and when and at such prices (including brokerage and other charges and including accrued interest) as the Agency may in its discretion determine. The par amount of any of the 2006 Term Bonds so purchased by the Agency in any twelve-month period ending on June 15 in any year shall be credited towards and shall reduce the par amount of such 2006 Term Bonds required to be redeemed pursuant to this subsection (b) on August 1 in such year, upon the presentation of the purchased 2006 Bonds to the Trustee on or prior to June 15 in any year. (c) Notice of Redemption. The Trustee on behalf and at the expense of the Agency shall mail (by first class mail) notice of any redemption to the respective Owners of any 2006 Bonds designated for redemption at their respective addresses appearing on the Registration Books, at least thirty (30) but not more than sixty (60) days prior to the date fixed for redemption; provided, however, that neither failure to receive any such notice so mailed nor any defect therein shall affect the validity of the proceedings for the redemption of such 2006 Bonds or the cessation of the accrual of interest thereon. Such notice shall state the date of the notice, the redemption date, the redemption place and the redemption price and shall designate the -6- CUSIP numbers, the 2006 Bond numbers and the maturity or maturities (in the event of redemption of all of the 2006 Bonds of such maturity or maturities in whole) of the 2006 Bonds to be redeemed, and shall require that such 2006 Bonds be then surrendered at the Principal Corporate Trust Office of the Trustee for redemption at the redemption price, giving notice also that further interest on such 2006 Bonds will not accrue from and after the redemption date. Additionally, on the date on which the notice of redemption is mailed to the Owners of the 2006 Bonds pursuant to the provisions above, such notice of redemption shall be given by (i) first class mail, postage prepaid, (ii) confirmed facsimile transmission, or (iii) overnight delivery service to the Agency, to each of the Securities Depositories and to one or more of the Information Services as shall be designated in writing by the Agency to the Trustee. Notwithstanding the foregoing, in the case of any optional redemption of the 2006 Bonds under Section 10.04(a) above, the notice of redemption shall state that the redemption is conditioned upon receipt by the Trustee of sufficient moneys to redeem the 2006 Bonds on the anticipated redemption date, and that the optional redemption shall not occur if by no later than the scheduled redemption date sufficient moneys to redeem the 2006 Bonds have not been deposited with the Trustee. In the event that the Trustee does not receive sufficient funds by the scheduled optional redemption date to so redeem the 2006 Bonds to be optionally redeemed, the Trustee shall send written notice to the owners of the 2006 Bonds, to the Securities Depositories and to one or more of the Information Services to the effect that the redemption did not occur as anticipated, and the 2006 Bonds for which notice of optional redemption was given shall remain Outstanding for all purposes of this Indenture. (d) Manner of Redemption. Whenever provision is made in this Section 10.04 for the redemption of less than all of the 2006 Bonds, unless otherwise provided herein, the Agency in its discretion shall determine the maturities to be redeemed by written notice to the Trustee, and the Trustee shall select the 2006 Bonds within a maturity to be redeemed by lot in any manner which the Trustee in its sole discretion shall deem appropriate. For purposes of such selection, all 2006 Bonds shall be deemed to be comprised of separate $5,000 denominations and such separate denominations shall be treated as separate 2006 Bonds which may be separately redeemed. Notwithstanding the foregoing, if for any reason the Agency fails to provide the Trustee with direction as to the maturities to be redeemed, the Trustee shall select the 2006 Bonds to be redeemed pro rata among maturities. (e) Partial Redemption of 2006 Bonds. In the event only a portion of any 2006 Bond is called for redemption, then upon surrender of such 2006 Bond the Agency shall execute and the Trustee shall authenticate and deliver to the Owner thereof, at the expense of the Agency, a new 2006 Bond or 2006 Bonds of the same series and maturity date, of authorized denominations in aggregate principal amount equal to the unredeemed portion of the 2006 Bond to be redeemed. (f) Effect of Redemption. From and after the date fixed for redemption, if notice of redemption shall have been duly mailed and funds available for the payment of the principal of and interest (and premium, if any) on the 2006 Bonds so called for redemption shall have been duly provided, such 2006 Bonds so called shall cease to be entitled to any benefit under this Indenture other than the right to receive payment of the redemption price, and no interest shall accrue thereon from and after the redemption date specified in such notice. -7- Section 10.05. Form of 2006 Bonds; Authentication and Delivery. The 2006 Bonds, the form of Trustee's certificate of authentication, and the form of assignment to appear thereon, shall be substantially in the respective forms set forth in Exhibit B attached hereto and by this reference incorporated herein, with necessary or appropriate variations, omissions and insertions, as permitted or required by this Indenture. The 2006 Bonds shall be executed on behalf of the Agency by the signature of its Chairman and the signature of its Secretary who are in office on the date of execution and delivery of this Indenture or at any time thereafter. Either or both of such signatures may be made manually or may be affixed by facsimile thereof. If any officer whose signature appears on any 2006 Bond ceases to be such officer before the Closing Date, such signature shall nevertheless be as effective as if the officer had remained in office until the Closing Date. Any 2006 Bond may be signed and attested on behalf of the Agency by such persons as at the actual date of the execution of such 2006 Bond shall be the proper officers of the Agency, duly authorized to execute debt instruments on behalf of the Agency, although on the date of such 2006 Bond any such person shall not have been such officer of the Agency. Only such of the 2006 Bonds as shall bear thereon a certificate of authentication in the form set forth in Exhibit B, manually executed and dated by the Trustee, shall be valid or obligatory for any purpose or entitled to the benefits of this Indenture, and such certificate of the Trustee shall be conclusive evidence that such 2006 Bonds have been duly authenticated and delivered hereunder and are entitled to the benefits of this Indenture. Section 10.06. Application of Proceeds of Sale of 2006 Bonds. Upon the receipt of payment for the 2006 Bonds on the Closing Date, the proceeds thereof shall be paid to the Trustee, which proceeds ($____) shall be deposited by the Trustee in a separate fund to be established by the Trustee to be known as the "2006 Bond Proceeds Fund" which shall be applied as follows: (a) The Trustee shall deposit in the Interest Account the amount of $0.00, representing capitalized interest on the 2006 Bonds; (b) The Trustee shall deposit in the 2006 Costs of Issuance Fund the amount of $____; (c) The Trustee shall deposit in the Project Fund the amount of $____; and (d) The Trustee shall deposit in the Reserve Account the amount of $0.00. In addition, the Trustee shall hold the 2006 Debt Service Reserve Surety Bond in the face amount of $____ provided by the 2006 Bond Insurer on the Closing Date for the benefit of the Reserve Account. The Trustee may, in its discretion, establish a temporary fund or account in its books and records to facilitate transfers required under this Section 10.06. -8- Section 10.07. 2006 Costs of Issuance Fund. There is hereby established a separate fund to be known as the "2006 Costs of Issuance Fund", which shall be held by the Trustee in trust. On the Closing Date, and without any further authorization or direction, immediately following receipt by the Trustee of the proceeds of the 2006 Bonds, the Trustee shall transfer, by wire transfer, from amounts deposited to the 2006 Costs of Issuance Fund, $____to the 2006 Bond Insurer, in respect of the premiums due for the 2006 Municipal Bond Insurance Policy ($____) and the 2006 Debt Service Reserve Surety Bond ($____). The remaining moneys in the 2006 Costs of Issuance Fund shall be used and withdrawn by the Trustee from time to time to pay the 2006 Costs of Issuance upon submission of a Written Request of the Agency stating (i) the person to whom payment is to be made, (ii) the amount to be paid, (iii) the purpose for which the obligation was incurred, (iv) that such payment is a proper charge against the 2006 Costs of Issuance Fund, and (v) that such amounts have not been the subject of a prior Written Request of the Agency; in each case together with a statement or invoice for each amount requested thereunder. On the earlier of (x) the date which is six (6) months following the Closing Date, or (y) the date of receipt by the Trustee of a Written Request of the Agency therefor, all amounts (if any) remaining in the 2006 Costs of Issuance Fund shall be withdrawn therefrom by the Trustee and transferred to the Interest Account for use for purposes of the Interest Account and the 2006 Costs of Issuance Fund shall be closed. Section 10.08. Deposit and Investment of Moneys in Funds. Moneys in the funds and accounts held by the Trustee under this Article X shall be invested by the Trustee in Permitted Investments directed in the Written Request of the Agency filed with the Trustee at least two (2) Business Days in advance of the making of such investments. In the absence of any such directions from the Agency, the Trustee shall invest such moneys in Permitted Investments described in clause (d) of the definition thereof. Obligations purchased as an investment of moneys in any fund shall be deemed to be part of such fund or account. All interest or gain derived from the investment of amounts in any of the funds or accounts established hereunder shall be deposited in the respective funds and accounts from which such investment shall have been made. For purposes of acquiring any investments hereunder, the Trustee may commingle funds held by it hereunder. The Trustee may act as principal or agent in the acquisition of any investment. The Trustee shall incur no liability for losses arising from any investments made pursuant to this Section. Except as otherwise provided in this Section 10.08, the Agency covenants that all investments of amounts deposited in any fund or account created by or pursuant to this Indenture, or otherwise containing gross proceeds of the 2006 Bonds (within the meaning of Section 148 of the Code) shall be acquired, disposed of, and valued (as of the date that valuation is required by this Indenture or the Code) at Fair Market Value. Investments in funds or accounts (or portions thereof) that are subject to a yield restriction under applicable provisions of the Code shall be valued by or on behalf of the Agency at their present value (within the meaning of section 148 of the Code). To the extent that any valuations of investments are made by the Trustee, the Trustee may utilize and rely upon computerized securities pricing services that may be available to it, including those available through its regular accounting system. -9- The Agency acknowledges that to the extent regulations of the Comptroller of the Currency or other applicable regulatory entity grant the Agency the right to receive brokerage confirmations of security transactions as they occur, the Agency specifically waives receipt of such confirmations to the extent permitted by law. The Trustee will furnish the Agency periodic cash transaction statements which include detail for all investment transactions made by the Trustee hereunder. The Trustee or any of its affiliates may act as sponsor, advisor or manager in connection with any investments made by the Trustee hereunder. Section 10.09. Security for 2006 Bonds. The 2006 Bonds shall be Parity Debt which shall be secured in the manner and to the extent set forth in Article IV and in this Article X. Section 10.10. Federal Tax Covenants. (a) Private Activity Bond Limitation. The Agency shall assure that the proceeds of the 2006 Bonds are not so used as to cause the 2006 Bonds to satisfy the private business tests of Section 141 (b) of the Code or the private loan financing test of Section 141(c) of the Code. (b) Federal Guarantee Prohibition. The Agency shall not take any action or permit or suffer any action to be taken if the result of the same would be to cause any of the 2006 Bonds to be "federally guaranteed" within the meaning of Section 149(b) of the Code. (c) Rebate Requirement. The Agency shall take any and all actions necessary to assure compliance with Section 148(f) of the Code, relating to the rebate of excess investment earnings, if any, to the federal government, to the extent that such section is applicable to the 2006 Bonds. (d) No Arbitrage. The Agency shall not take, or permit or suffer to be taken by the Trustee or otherwise, any action with respect to the proceeds of the 2006 Bonds which, if such action had been reasonably expected to have been taken, or had been deliberately and intentionally taken, on the date of issuance of the 2006 Bonds would have caused the 2006 Bonds to be "arbitrage bonds" within the meaning of Section 148 of the Code. (e) Maintenance of Tax-Exemption. The Agency shall take all actions necessary to assure the exclusion of interest on the 2006 Bonds from the gross income of the owners thereof to the same extent as such interest is permitted to be excluded from gross income under the Code as in effect on the date of issuance of the 2006 Bonds. (f) Compliance with Tax Covenants for 2006 Series B Bonds. The Agency agrees to comply with the provisions of Section 5.11 of the Indenture of Trust, dated as of December 1, 2006, between the Agency and U.s. Bank National Association, as trustee, related to the Agency's Temecula Redevelopment Project No. 1 2006 Tax Allocation Bonds, Series B (Subordinate Lien). Section 10.11. Continuing Disclosure. The Agency hereby covenants and agrees that it will comply with and carry out all of the provisions of the Continuing Disclosure Certificate. Notwithstanding any other provision of this Indenture, failure of the Agency to comply with -10- the Continuing Disclosure Certificate shall not be considered an Event of Default; however, the Trustee, at the written request of any participating underwriter or the Owners of at least 25% aggregate principal amount of Outstanding 2006 Bonds, shall, but only to the extent indemnified from any liability, cost or expense, including, but not limited to fees and expenses of its attorneys and additional fees and expenses of the Trustee, or any Bondowner may take such actions as may be necessary and appropriate, including seeking mandate or specific performance by court order, to cause the Agency to comply with its obligations under this Section. Section 10.12. Payment Procedure Pursuant to the 2006 Municipal Bond Insurance Policy. As long as the 2006 Municipal Bond Insurance Policy shall be in full force and effect, the Agency and the Trustee agree to comply with the following provisions: [(a) At least one (1) day prior to each Interest Payment Date, the Trustee will determine whether there will be sufficient moneys in the funds and accounts maintained by the Trustee under this Indenture to pay the principal or interest due on the 2006 Bonds on such Interest Payment Date. If the Trustee determines that there will be insufficient moneys in such funds or accounts, the Trustee shall so notify the 2006 Bond Insurer. Such notice shall specify the amount of the anticipated deficiency, the 2006 Bonds to which such deficiency is applicable and whether such 2006 Bonds will be deficient as to principal or interest, or both. If the Trustee has not so notified the 2006 Bond Insurer at least one (1) day prior to an Interest Payment Date, the 2006 Bond Insurer will make payments of principal or interest due on the 2006 Bonds on or before the first (1st) day next following the date on which the 2006 Bond Insurer shall have received notice of nonpayment from the Trustee. (b) The Trustee shall, after giving notice to the 2006 Bond Insurer as provided in (a) above, make available to the 2006 Bond Insurer and, at the 2006 Bond Insurer's direction, to _____, in New York, New York, as insurance trustee for the 2006 Bond Insurer or any successor insurance trustee (the "Insurance Trustee"), the Registration Books and all records relating to the funds and accounts maintained by the Trustee under this Indenture. (c) The Trustee shall provide the 2006 Bond Insurer and the Insurance Trustee with a list of Owners entitled to receive principal or interest payments from the 2006 Bond Insurer under the terms of the 2006 Municipal Bond Insurance Policy, and shall make arrangements with the Insurance Trustee (i) to mail checks or drafts to the Owners entitled to receive full or partial interest payments from the 2006 Bond Insurer and (ii) to pay principal on the 2006 Bonds surrendered to the Insurance Trustee by the Owners entitled to receive full or partial principal payments from the 2006 Bond Insurer. (d) The Trustee shall, at the time it provides notice to the 2006 Bond Insurer pursuant to (a) above, notify Owners entitled to receive the payment of principal or interest from the 2006 Bond Insurer (i) as to the fact of such entitlement, (ii) that the 2006 Bond Insurer will remit to them all or a part of the interest payments next coming due upon proof of Owner entitlement to interest payments and delivery to the Insurance Trustee, in form satisfactory to the Insurance Trustee, of an appropriate assignment of the Owner's right to payment, (iii) that should they be entitled to receive full payment of principal from the 2006 Bond Insurer, they must surrender their 2006 Bonds (along with an appropriate instrument of assignment in form satisfactory to the Insurance Trustee to permit ownership of such 2006 Bonds to be registered in the name of -11- the 2006 Bond Insurer) for payment to the Insurance Trustee, and not the Trustee and (iv) that should they be entitled to receive partial payment of principal from the 2006 Bond Insurer, they must surrender their 2006 Bonds for payment first to the Trustee who shall note on such 2006 Bonds the portion of the principal paid by the Trustee and then, along with an appropriate instrument of assignment in form satisfactory to the Insurance Trustee, to the Insurance Trustee, which will then pay the unpaid portion of principal. (e) In the event that the Trustee has notice that any payment of principal or interest with respect to a 2006 Bond which has become Due for Payment (as such term is defined in the 2006 Municipal Bond Insurance Policy) and which is made to a Owner by or on behalf of the Agency has been deemed a preferential transfer and theretofore recovered from its registered owner pursuant to the United States Bankruptcy Code by a trustee in bankruptcy in accordance with the final, nonappealable order of a court having competent jurisdiction, the Trustee shall, at the time the 2006 Bond Insurer is notified, notify all Owners that in the event that any Owner's payment is so recovered, such Owner will be entitled to payment from the 2006 Bond Insurer to the extent of such recovery if sufficient funds are not otherwise available, and the Trustee shall furnish to the 2006 Bond Insurer its records evidencing the payments of principal and interest on the 2006 Bonds which have been made by the Trustee and subsequently recovered from Owners and the dates on which such payments were made. (f) In addition to those rights granted the 2006 Bond Insurer under this Indenture, the 2006 Bond Insurer shall, to the extent it makes payment of principal or interest on the 2006 Bonds, become subrogated to the rights of the recipients of such payments in accordance with the terms of the 2006 Municipal Bond Insurance Policy, and to evidence such subrogation (i) in the case of subrogation as to claims for past due interest, the Trustee shall note the 2006 Bond Insurer's rights as subrogee on the Registration Books upon receipt from the 2006 Bond Insurer of proof of the payment of interest with respect thereto to the Owners, and (ii) in the case of subrogation as to claims for past due principal, the Trustee shall note the 2006 Bond Insurer's rights as subrogee on the Registration Books upon surrender of the 2006 Bonds by the Owners thereof together with proof of the payment of principal thereof.] Section 10.13. Rights of 2006 Bond Insurer. (a) Notice of Events of Default. Immediately upon obtaining actual knowledge of the occurrence of an Event of Default, the Trustee shall give notice of such Event of Default to the 2006 Bond Insurer and the Agency by telephone confirmed in writing. (b) consent and Indenture. Consent of 2006 Bond Insurer. The 2006 Bond Insurer shall be entitled to all of the other rights provided to the Municipal Bond Insurer in Section 8.08 of this (c) Rights of 2006 Bond Insurer. Anything in this Indenture to the contrary notwithstanding, upon the occurrence and continuation of an Event of Default, the 2006 Bond Insurer shall be entitled to control and direct the enforcement of all rights and remedies granted hereunder to the Owners of the 2006 Bonds, or to the Trustee for the benefit of the Owners of the 2006 Bonds, including but not limited to the right to approve all waivers of any Events of Default. The rights granted to the 2006 Bond Insurer hereunder shall be deemed terminated -12- and shall not be exercisable by the 2006 Bond Insurer during any period during which the 2006 Bond Insurer shall be in default under the 2006 Municipal Bond Insurance Policy. To the extent that this Indenture confers upon or gives or grants to the 2006 Bond Insurer any right, remedy or claim under or by reason of this Indenture, the 2006 Bond Insurer is hereby explicitly recognized as being a third-party beneficiary hereunder and may enforce any such right remedy or claim conferred, given or granted hereunder. (d) Other Notices to be Given to the 2006 Bond Insurer. While the 2006 Municipal Bond Insurance Policy is in effect, the Agency or the Trustee, as appropriate, shall furnish to the 2006 Bond Insurer: (i) as to the Agency, as soon as practicable after the filing thereof, the Agency shall provide a copy of any financial statement of the Agency and a copy of any audit and annual report of the Agency; (ii) a copy of any notice to be given to the Owners including, without limitation, notice of any redemption of or defeasance of 2006 Bonds, and any certificate rendered pursuant to this Indenture relating to the security for the 2006 Bonds; (iii) a copy of any notice provided by the Agency under the Continuing Disclosure Certificate; and (iv) such additional information the 2006 Bond Insurer may reasonably request in writing. The Trustee shall notify the 2006 Bond Insurer of any failure of the Agency to provide the Trustee any notices or certificates required hereunder. The Agency will permit the 2006 Bond Insurer to discuss the affairs, finances and accounts of the Agency or any information the 2006 Bond Insurer may reasonably request regarding the security for the Bonds with appropriate officers of the Agency. The Agency will permit the 2006 Bond Insurer to have access to and to make copies of all books and records relating to the 2006 Bonds at any reasonable time with reasonable prior notice. (e) Default by 2006 Municipal Bond Insurer, Trustee Notices. Notwithstanding anything in this Indenture to the contrary: (i) if the 2006 Bond Insurer has failed to make any payments under the 2006 Municipal Bond Insurance Policy, and such failure remains unremedied, all rights accruing to the 2006 Bond Insurer hereunder with respect to the 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) the Trustee undertakes no responsibility for delivering any notices to the 2006 Bond Insurer except as expressly provided herein and no act or omission of the Trustee shall affect or impair in any manner the enforceability of the 2006 Municipal Bond Insurance Policy. Section 10.14. Effect of this Article X. Except as in this Article X expressly provided or except to the extent inconsistent with any provision of this Article X, the 2006 Bonds shall be deemed to be "Bonds" under and within the meaning of Section 1.01, and every term and -13- condition contained in the foregoing provisions of this Indenture shall apply to the 2006 Bonds with full force and effect, with such omissions, variations and modifications thereof as may be appropriate to make the same conform to this Article X. SECTION 2. Attachment of Exhibit B. The Original Indenture is hereby further amended by incorporating therein an Exhibit B setting forth the forms of the 2006 Bonds, which shall read in its entirety as set forth in Exhibit A attached hereto and hereby made a part hereof. SECTION 3. Additional Amendments to Original Indenture. The Original Indenture is hereby further amended as follows: (a) All references to the "2002 Bonds" in Sections 2.05, 2.06 and 2.10 of the Original Indenture are hereby amended to refer to the "2002 Bonds and the 2006 Bonds." (b) The term "Qualified Reserve Account Credit Instrument" in Section 1.01 of the Original Indenture is hereby amended by adding thereto, between the clauses "Closing Date, and (ii)" and "an irrevocable standby" therein, the following: "the 2006 Debt Service Reserve Surety Bond provided by the 2006 Bond Insurer on the Closing Date (as such terms are defined in Section 10.01), and (iii)." (c) The term "Reserve Requirement" in Section 1.01 of the Original Indenture is hereby amended and restated in whole to read as follows: ""Reserve Requirement" means, with respect to each series of the Bonds, as of the date of any calculation by the Agency, the least of (a) Maximum Annual Debt Service with respect to such series of the Bonds, or (b) one hundred twenty-five percent (125%) of average Annual Debt Service with respect to such series of the Bonds, or (c) ten percent (10%) of the initial principal amount of such series of the Bonds. For purposes of the preceding sentence, the terms "Maximum Annual Debt Service" and "Annual Debt Service" shall, notwithstanding their respective definitions in Section 1.01, only include the respective series of the Bonds and not all Bonds outstanding. As of the Closing Date (as defined in Section 1.01), the Reserve Requirement for the 2002 Bonds was $1,786,712.50; and as of the Closing Date (as defined in Section 10.01) the Reserve Requirement for the 2006 Bonds was $____." (d) Section 1.01 of the Original Indenture is hereby amended by adding thereto the following: ""2006 Debt Service Reserve Surety Bond" means the debt service reserve account surety bond issued by the 2006 Bond Insurer (as defined in Section 10.01) on the Closing Date (as defined in Section 10.01). "2006 Reserve Subaccount" means the subaccount within the Reserve Account by that name established and held by the Trustee pursuant to Section 4.03(d). "2002 Debt Service Reserve Surety Bond" means the debt service reserve account surety bond issued by the Municipal Bond Insurer on the Closing Date. -14- "2002 Reserve Subaccount" means the subaccount within the Reserve Account by that name established and held by the Trustee pursuant to Section 4.03(d)." (e) The terms "Debt Service Reserve Surety Bond" and "Reserve Account" in Section 3.02 of the Original Indenture are hereby amended to be "2002 Debt Service Reserve Surety Bond" and "2002 Reserve Subaccount," respectively. (f) Subsection (c)(iii) of Section 3.05 of the Original Indenture is hereby amended and restated in whole to read as follows: "(iii) Money (and/or a Qualified Reserve Fund Credit Instrument) shall be deposited in a subaccount of the Reserve Account created for such Parity Bonds in an amount equal to the initial Reserve Requirement for such Parity Bonds." (g) Section 4.03(d) of the Original Indenture is hereby amended and restated in whole to read as follows: "(d) Reserve Account. There is hereby established with the Trustee the Reserve Account, and within the Reserve Account a 2002 Reserve Subaccount and a 2006 Reserve Subaccount. The Trustee shall hold the 2002 Debt Service Reserve Surety Bond for the benefit of the 2002 Reserve Subaccount, and shall hold the 2006 Debt Service Reserve Surety Bond for the benefit of the 2006 Reserve Subaccount. In the event that the amount on deposit in a subaccount of the Reserve Account at any time becomes less than the Reserve Requirement for the corresponding series of the Bonds (taking into account any Qualified Reserve Account Credit Instrument held for the benefit of such subaccount), the Trustee (to the extent known to it) shall promptly notify the Agency of such fact. Promptly upon receipt of any such notice, the Agency shall transfer to the Trustee from the Special Fund an amount sufficient to maintain the Reserve Requirement for each series of the Bonds on deposit in the respective subaccount of the Reserve Account for such series (taking into account any Qualified Reserve Account Credit Instrument held for the benefit of such subaccount). Amounts in the 2002 Reserve Subaccount shall be used and withdrawn by the Trustee for the purpose of making transfers to the Interest Account, the Principal Account and the Sinking Account, in such order of priority, to be used solely to make payments on the 2002 Bonds, on any date which the principal of or interest on the 2002 Bonds becomes due and payable hereunder, in the event of any deficiency at any time in any of such accounts for such purpose, or at any time for the retirement of all the 2002 Bonds then Outstanding. Amounts in the 2006 Reserve Subaccount shall be used and withdrawn by the Trustee for the purpose of making transfers to the Interest Account, the Principal Account and the Sinking Account, in such order of priority, to be used solely to make payments on the 2006 Bonds, on any date which the principal of or interest on the 2006 Bonds becomes due and payable hereunder, in the event of any deficiency at any time in any of such accounts for such purpose, or at any time for the retirement of all the 2006 Bonds then Outstanding. So long as no Event of Default shall have occurred and be continuing, any amount in a subaccount of the Reserve Account in excess of the Reserve Requirement for the related series of Bonds as of the fourth -15- Business Day preceding each Interest Payment Date, shall be withdrawn from the respective subaccount of the Reserve Account by the Trustee and deposited in the Interest Account on or before the immediately following Interest Payment Date. The Agency shall have the right at any time to release any funds from a subaccount of the Reserve Account, in whole or in part, by tendering to the Trustee: (i) a Qualified Reserve Account Credit Instrument, (ii) an opinion of Bond Counsel stating that neither the release of such funds nor the acceptance of such Qualified Reserve Account Credit Instrument will cause interest on the Bonds to become includable in gross income for purposes of federal income taxation. Upon tender of such items to the Trustee, and upon delivery by the Agency to the Trustee of written calculation of the amount permitted to be released from the applicable subaccount of the Reserve Account (upon which calculation the Trustee may conclusively rely), the Trustee shall transfer such funds from the applicable subaccount of the Reserve Account to the Agency free and clear of the lien of this Indenture. The Trustee shall comply with all documentation relating to a Qualified Reserve Account Credit Instrument as shall be required to maintain such Qualified Reserve Account Credit Instrument in full force and effect and as shall be required to receive payments thereunder in the event and to the extent required to make any payment from the respective subaccount of the Reserve Account when and as required under this subsection (d). At least fifteen (15) days prior to the expiration of any Qualified Reserve Account Credit Instrument, the Agency shall be obligated either (i) to replace such Qualified Reserve Account Credit Instrument with a new Qualified Reserve Account Credit Instrument, or (ii) to deposit or cause to be deposited with the Trustee an amount of funds such that the amount on deposit in the applicable subaccount of the Reserve Account is equal to the Reserve Requirement (without taking into account such expiring Qualified Reserve Fund Credit Instrument) for the related series of the Bonds. In the event that the Agency shall fail to take action as specified in clause (i) or (ii) of the preceding sentence, the Trustee shall, prior to the expiration thereof, draw upon the Qualified Reserve Account Credit Instrument in full and deposit the proceeds of such draw in the applicable subaccount of the Reserve Account. In the event that the Reserve Requirement for any series of the Bonds shall at any time be maintained in a subaccount of the Reserve Account in the form of a combination of cash and a Qualified Reserve Account Credit Instrument, the Trustee shall apply the amount of such cash to make any payment required to be made from the applicable subaccount of the Reserve Account before the Trustee shall draw any moneys under such Qualified Reserve Account Credit Instrument for such purpose. In the event that the Trustee shall at any time draw funds under a Qualified Reserve Account Credit Instrument to make any payment then required to be made from a subaccount of the Reserve Account, the Tax Revenues thereafter received by the Trustee, to the extent remaining after making the other deposits (if any) then required to be made pursuant to Section 4.03(a), (b) and (c), shall be used to reinstate the Qualified Reserve Account Credit Instrument. If there are more than one Qualified Reserve Account Credit Instruments held in the subaccounts of the Reserve Account, any reinstatement shall be made upon them pro rata." -16- (n) The words "Financial Guaranty Agreement" in Section 9.03 of the Original Indenture are hereby amended to read as follows: "Financial Guaranty Agreement or 2006 Financial Guaranty Agreement." SECTION 4. Partial Invalidity. If any section, paragraph, sentence, clause or phrase of this First Supplement shall for any reason be held illegal, invalid or unenforceable, such holding shall not affect the validity of the remaining portions of this First Supplement. The Agency hereby declares that it would have entered into this First Supplement and each and every other Section, paragraph, sentence, clause or phrase hereof and authorized the issue of the 2006 Bonds pursuant thereto irrespective of the fact that anyone or more Sections, paragraphs, sentences. clauses, or phrases of this First Supplement may be held illegal, invalid or unenforceable. SECTION 5. Execution in Counterparts. This First Supplement 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 6. Governing Law. This First Supplement shall be construed and governed in accordance with the laws of the State of California applicable to contracts made and performed in such state. -17- IN WITNESS WHEREOF, the REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA has caused this First Supplemental Indenture of Trust to be signed in its name by its Executive Director and attested to by its Secretary, and U.s. BANK NATIONAL ASSOCIATION, in token of its acceptance of the trusts created hereunder, has caused this First Supplemental Indenture of Trust to be signed in its corporate name by its officer thereunto duly authorized, all as of the day and year first above written. REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA By: Executive Director ATTEST: By: Secretary u.s. BANK NATIONAL ASSOCIATION, as Trustee By: Authorized Officer The foregoing First Supplemental Indenture is hereby consented to, and the undersigned acknowledges that it has received a copy of the disclosure document (Official Statement) for the 2006 Bonds. MBIA INSURANCE CORPORATION By: Its: 20005.04:)9025 -18- EXHIBIT A TO FIRST SUPPLEMENTAL INDENTURE OF TRUST EXHIBIT B FORM OF 2006 BONDS No. $ UNITED STATES OF AMERICA STATE OF CALIFORNIA COUNTY OF RIVERSIDE REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA TEMECULA REDEVELOPMENT PROJECT NO.1 2006 TAX ALLOCATION BOND, SERIES A RATE OF INTEREST MATURITY DATE August 1,__ ORIGINAL ISSUE DATE December __, 2006 CUSIP: REGISTERED OWNER: PRINCIPAL AMOUNT: The REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA, a public body, corporate and politic, duly organized and existing under and by virtue of the laws of the State of California (the" Agency"), for value received hereby promises to pay (but only out of the Tax Revenues as that term is defined in the Indenture, and other moneys and security hereinafter referred to, to the Registered Owner stated above or registered assigns, on the Maturity Date stated above (subject to any right of prior redemption hereinafter provided for), the Principal Amount stated above in lawful money of the United States of America and to pay interest thereon at the Interest Rate stated above in like lawful money from the Interest payment Date (as hereinafter defined) next preceding the date of authentication of this Bond (unless (1) this Bond is authenticated after a Record Date (as hereinafter defined) and on or before the following Interest Payment Date in which event it shall bear interest from such Interest Payment Date, or (2) this Bond is authenticated on or prior to January 15, 2007, in which event it shall bear interest from the Original Issue Date stated above; provided, however, that if at the time of authentication of this Bond, interest is in default on this Bond, this Bond shall bear interest from the Interest Payment Date to which interest has previously been paid or made available for payment on this Bond) until payment of such Principal Amount in full, payable semiannually on each February 1 and August 1, commencing February 1, 2007 (each an "Interest Payment Date"), calculated on the basis of a 360-day year composed of twelve 30-day months. Principal hereof at maturity and premium, if any, upon earlier redemption hereof are payable upon presentment and surrender at the corporate trust office of U.s. Bank National Association, the trustee under the Indenture (as hereinafter defined) (the "Trustee") or such A-I other place as designated by the Trustee. Interest hereon (including the final interest payment upon maturity or earlier redemption) is payable by check of the Trustee mailed on each Interest Payment Date by first class mail to the Registered Owner hereof at the Registered Owner's address as it appears on the Bond registration books maintained by the Trustee at the close of business on the fifteenth day of the month preceding each Interest Payment Date (the "Record Date"), or by wire transfer to an owner of $1,000,000 or more in aggregate principal amount of Bonds at such wire transfer address in the United States as such owner shall specify in a written notice requesting payment by wire transfer delivered to the Trustee not later than the Record Date for such payment. This Bond is one of a duly authorized series of bonds of the Agency designated as "Redevelopment Agency of the City of Temecula, Temecula Redevelopment Project No.1 2006 Tax Allocation Bonds, Series A" (the "Bonds"), in an initial aggregate principal amount of ____ Million ____ Hundred ____ Thousand Dollars ($____), all of like tenor and date (except for such variation, if any, as may be required to designate varying numbers, maturities, interest rates, or redemption and other provisions). The Bonds are issued pursuant to the provisions of the Community Redevelopment Law, being Part 1 (commencing with Section 33000) of Division 24 of the Health and Safety Code of the State of California (the "Law"), and pursuant to an Indenture of Trust, dated as of April 1, 2002, entered into by and between the Agency and the Trustee, as amended and supplemented pursuant to a First Supplemental Indenture of Trust, dated as of December 1, 2006, between the Agency and the Trustee (as so amended and supplemented, the "Indenture"), authorizing the issuance of the Bonds. The Bonds have been issued on a parity with the Agency's Temecula Redevelopment Project No.1 2002 Tax Allocation Bonds previously issued by the Agency in the initial principal amount of $28,055,000 (the "2002 Bonds"). The Agency may issue or incur additional obligations on a parity with the Bonds and the 2002 Bonds, but only subject to the terms of the Indenture. Reference is hereby made to the Indenture (copies of which are on file at the office of the Agency) and all indentures supplemental thereto and to the Law for a description of the terms on which the Bonds are issued, the provisions with regard to the nature and extent of the Tax Increment Revenues, as that term is defined in the Indenture, and other amounts pledged under the Indenture, and the rights thereunder of the owners of the Bonds and the rights, duties and immunities of the Trustee and the rights and obligations of the Agency thereunder, to all of the provisions of which Indenture the Registered Owner of this Bond, by acceptance hereof, assents and agrees. The Bonds have been issued by the Agency to (i) finance redevelopment projects of the Agency; and (ii) pay costs related to the issuance of the Bonds. Concurrently with the issuance of the Bonds, the Agency is issuing its Redevelopment Agency of the City of Temecula Temecula Redevelopment Project No.1 2006 Tax Allocation Bonds, Series B (Subordinate Lien), which bonds are secured by a pledge of the Tax Increment Revenues which pledge is subordinate to the pledge thereof under the Indenture. This Bond and the interest hereon and all other Bonds and the interest thereon (to the extent set forth in the Indenture) are payable from, and are secured by a charge and lien on the Tax Increment Revenues derived by the Agency from the Redevelopment Project, as defined in the Indenture, on a parity with the 2002 Bonds and any other Parity Debt (as defined in the Indenture) to be issued by the Agency under the Indenture. As and to the extent set forth in the Indenture, all of the Tax Increment Revenues are exclusively and irrevocably pledged in A-2 accordance with the terms hereof and the provisions of the Indenture and the Law, to the payment of the principal of and interest and premium (if any) on the Bonds, the 2002 Bonds and any Parity Debt. Notwithstanding the foregoing, certain amounts out of Tax Increment Revenues may be applied for other purposes as provided in the Indenture. This Bond is not a debt of the City of Temecula, the State of California or any of its political subdivisions (other than the Agency, to the limited extent set forth in the Indenture), and neither said City, said State, nor any of its political subdivision (other than the Agency, to the limited extent set forth in the Indenture), is liable hereon nor in any event shall this Bond be payable out of any funds or properties other than the Tax Revenues and amounts pledged therefor under the Indenture. The Bonds do not constitute an indebtedness within the meaning of any constitutional or statutory debt limitation or restriction. The rights and obligations of the Agency and the owners of the Bonds may be modified or amended at any time in the manner, to the extent and upon the terms provided in the Indenture, but no such modification or amendment shall permit a change in the terms of redemption or maturity of the principal of any outstanding Bond or of any installment of interest thereon or a reduction in the principal amount or the redemption price thereof or in the rate of interest thereon without the consent of the owner of such Bond, or shall reduce the percentages of the owners required to effect any such modification or amendment. Bonds maturing on or after August 1, __, are subject to redemption in whole, or in part among such maturities as shall be determined by the Agency and by lot within a maturity, at the option of the Agency, on any date on or after August 1, __ from any available source of funds, at a redemption price equal to the principal amount thereof to be redeemed together with accrued interest thereon to the redemption date, plus a premium (expressed as a percentage of the principal amount of the Bonds to be redeemed) as follows: Redemption Periods August 1, __ through July 31,__ August 1, __ through July 31,__ August 1, __ and thereafter Redemption Premium % Bonds maturing on August 1 in the years __ and 2038 are subject to redemption from sinking account payments made by the Agency, in part by lot, on August 1 in the years set forth in the following tables, at a redemption price equal to the principal amount thereof to be redeemed together with accrued interest thereon to the redemption date, without premium, as set forth in the following tables: 2006 Bonds Maturing on August 1, __ Sinking Account Principal Amount Redemption Date To Be Redeemed (August 1) or Purchased 2006 Bonds Maturing on August 1, 2038 Sinking Account Principal Amount Redemption Date To Be Redeemed (August 1) or Purchased A-3 As provided in the Indenture, notice of redemption shall be mailed by first class mail not less than thirty (30) nor more than sixty (60) days prior to the redemption date to the respective owners of any Bonds designated for redemption at their addresses appearing on the Bond registration books of the Trustee, but neither failure to receive such notice nor any defect in the notice so mailed shall effect the sufficiency of the proceedings for redemption. If this Bond is called for redemption and payment is duly provided therefor as specified in the Indenture, interest shall cease to accrue hereon from and after the date fixed for redemption. The Bonds are issuable as fully registered bonds without coupons in denominations of $5,000 or any integral multiple thereof. Subject to the limitations and conditions and upon payment of the charges, if any, as provided in the Indenture, Bonds may be exchanged for a like aggregate principal amount of Bonds of other authorized denominations and of the same maturity. This Bond is transferable by the Registered Owner hereof, in person or by his attorney duly authorized in writing at said offices of the Trustee, but only in the manner and subject to the limitations provided in the Indenture, and upon surrender and cancellation of this Bond. Upon registration of such transfer a new fully registered Bond or Bonds, of authorized denomination or denominations for the same aggregate principal amount and of the same maturity, will be issued to the transferee in exchange therefor. The Trustee shall not be required to register the transfer or exchange of Bonds (i) between the date which is fifteen days before selection of Bonds for redemption and the date of mailing notice of redemption, and (ii) as to any Bond selected for redemption. The Agency and the Trustee may treat the Registered Owner hereof as the absolute owner hereof for all purposes, and the Agency and the Trustee shall not be affected by any notice to the contrary. Unless this Certificate is presented by an authorized representative of The Depository Trust Company, a New York Corporation CDTC"), to the Agency or the Trustee for registration of transfer, exchange, or payment, and any Certificate issued is registered in the name of Cede & Co. or in such other name as is requested by an authorized representative of DTC (and any payment is made to Cede & Co. or to such other entity as is requested by an authorized representative of DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co., has an interest herein. It is hereby certified that all of the things, conditions and acts required to exist, to have happened or to have been performed precedent to and in the issuance of this Bond do exist, have happened or have been performed in due and regular time, form and manner as required by the Law and the laws of the State of California and that the amount of this Bond, together with all other indebtedness of the Agency, does not exceed any limit prescribed by the Law or any laws of the State of California. and is not in excess of the amount of Bonds permitted to be issued under the Indenture. A-4 This Bond shall not be entitled to any benefit under the Indenture or become valid or obligatory for any purpose until the Certificate of Authentication hereon endorsed shall have been manually signed and dated by the Trustee. A-5 IN WITNESS WHEREOF, the Redevelopment Agency of the City of Temecula has caused this Bond to be executed in its name and on its behalf with the facsimile signature of its Chairman and its seal to be reproduced hereon and attested to by the facsimile signature of its Secretary, all as of the Original Issue Date specified above. REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA [SEAL] By Chairman Attest: Secretary TRUSTEE'S CERTIFICATE OF AUTHENTICATION This is one of the Bonds described in the within-mentioned Indenture. Dated: U.s. BANK NATIONAL ASSOCIATION, as Trustee By Authorized Signatory A-6 STATEMENT OF INSURANCE [to come] A-7 ASSIGNMENT For value received, the undersigned do(es) hereby sell, assign and transfer unto (Name, Address and Tax Identification or Social Security Number of Assignee) the within Bond and do(es) hereby irrevocably constitute(s) and appoint(s) attorney, to transfer the same on the registration books of the Trustee with full power of substitution in the premises. Dated: Signature Guarantee: NOTICE: Signature(s) must be guaranteed by an eligible guarantor institution (banks, stock brokers, savings and loan associations and credit unions with membership in an approved signature guarantee medallion program) pursuant to Securities and Exchange Conunission Rule 17 Ad-IS. NOTICE: The signature(s) on this Assignment must correspond with the name(s) as written on the face of the within Certificate in every particular, without alteration or enlargement or any change whatsoever. A-8 INDENTURE OF TRUST Redevelopment Agency of the City of Temecula Temecula Redevelopment Project No.1 2006 Tax Allocation Bonds Quint & Thimmig LLP 9/26/06 10/13/06 10/24/06 10/25/06 INDENTURE OF TRUST by and between the REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA and u.s. BANK NATIONAL ASSOCIATION, as Trustee Dated as of December 1, 2006 Relating to: $ Redevelopment Agency of the City of Temecula Temecula Redevelopment Project No.1 2006 Tax Allocation Bonds, Series B (Subordinate Lien) 20005.04:)9020 Section 1.01. Section 1.02. Section 2.01. Section 2.02. Section 2.03. Section 2.04. Section 2.05. Section 2.06. Section 2.07. Section 2.08. Section 2.09. Section 2.10. Section 3.01. Section 3.02. Section 3.03. Section 3.04. Section 3.05. Section 3.06. Section 3.07. Section 4.01. Section 4.02. Section 4.03. Section 4.04. Section 4.05. Section 5.01. Section 5.02. Section 5.03. Section 5.04. Section 5.05. Section 5.06. TABLE OF CONTENTS ARTICLE I DEFINITIONS; RULES OF CONSTRUCTION Definitions.......................................................................................................................................3 Rules of Construction.................................................................................................................. 17 ARTICLE II AUTHORIZATION AND TERMS OF 2006 BONDS Authorization and Purpose of 2006 Bonds ...............................................................................18 Terms of the 2006 Bonds.............................................................................................................. 18 Redemption of 2006 Bonds.......................................................................................................... 20 Form of 2006 Bonds; Authentication and Delivery.................................................................. 22 Transfer of 2006 Bonds................................................................................................................ 23 Exchange of 2006 Bonds.............................................................................................................. 23 Re gistration Books........................................................................................................................ 24 T em porary Bonds......................................................................................................................... 24 Bonds Mutilated, Lost, Destroyed or Stolen ............................................................................. 24 Use of Depository.................................................................................................................... ..... 2S ARTICLE III DEPOSIT AND APPLICATION OF PROCEEDS OF 2006 BONDS ISSUANCE OF PARITY DEBT Issuance of 2006 Bonds................................................................................................................ 27 Deposit and Application of Proceeds ........................................................................................ 27 Costs of Issuance Fund................................................................................................................ 27 Project Fund.......................................................................................................................... ........ 27 Issuance of Parity Debt................................................................................................................ 28 Issuance of Subordinate Debt..................................................................................................... 29 V alidi ty of Bonds......................................................................................................................... . 29 ARTICLE IV SECURITY OF BONDS; FLOW OF FUNDS; INVESTMENTS Security of Bonds; Equal Security ..............................................................................................30 Special Fund; Deposit of Tax Revenues ....................................................................................30 Debt Service Fund; Transfer of Amounts to Trustee...............................................................31 Investment By Trustee of Moneys in Funds .............................................................................33 Val ua tion and Disposition of Investments................................................................................ 34 ARTICLE V OTHER COVENANTS OF THE AGENCY Punctual Payment...................................................................................................................... ..36 Umi ta tion on Superior Debt....................................................................................................... 36 Payment of Claims ....................................................................................................................... 36 Books and Accounts..................................................................................................................... 36 Protection of Security and Rights; Pass-Through Agreements ..............................................37 Payments of Taxes and Other charges......................................................................................37 -i- Section 5.07. Section 5.08. Section 5.09. Section 5.10. Section 5.1l. Section 5.12. Section 5.13. Section 5.14. Section 5.15. Section 6.0l. Section 6.02. Section 6.03. Section 6.04. Section 6.05. Section 6.06. Section 6.07. Section 6.08. Section 7.0l. Section 7.02. Section 7.03. Section 7.04. Section 7.05. Section 8.0l. Section 8.02. Section 8.03. Section 8.04. Section 8.05. Section 8.06. Section 8.07. Section 9.0l. Section 9.02. Section 9.03. Section 9.04. Section 9.05. Section 9.06. Section 9.07. Section 9.08. Extension of Payment.................................................................................................................. 37 Disposition of Property ............................................................................................................... 37 Maintenance of Tax Increment Revenues .................................................................................38 Payment of Expenses; Indemnification..................................................................................... 38 Tax Covenants Relating to 2006 Bonds......................................................................................38 Con tin uing Disclosure................................................................................................................. 39 Further Assurances.................................................................................................................... ..39 No Additional Senior Bonds; Amendments to Senior Indenture ..........................................39 Annual Review of Tax Revenues ...............................................................................................39 ARTICLE VI THE TRUSTEE Duties, Immunities and Liabilities of Trustee ..........................................................................41 Merger or Consolidation............................................................................................................. 42 Liability of Trustee....................................................................................................................... 42 Right to Rely on Documents....................................................................................................... 44 Preservation and Inspection of Documents.............................................................................. 44 Compensation and Indemnification.......................................................................................... 44 Accounting Records and Financial Statements ........................................................................45 Appointment of Co-Trustee or Agent .......................................................................................45 ARTICLE VII MODIFICATION OR AMENDMENT OF THIS INDENTURE Amendment With Consent of Owners ...................................................................................... 47 Effect of Su ppIemen tal Indenture.............................................................................................. 47 Endorsement or Replacement of Bonds After Amendment...................................................48 Amendment by Mutual Consent................................................................................................ 48 Trustee's Reliance....................................................................................................................... ..48 ARTICLE VIII EVENTS OF DEFAULT AND REMEDIES OF OWNERS Events of Defa uI t .......................................................................................................................... 49 Application of Funds Upon Default .......................................................................................... 49 Power of Trustee to Control Proceedings .................................................................................50 Limitation on Owners' Right to Sue ..........................................................................................50 Non-waiver ................................................................................................................................... 51 Actions by Trustee as Attorney-in-Fact..................................................................................... 51 Remedies Not Exclusive.............................................................................................................. 52 ARTICLE IX MISCELLANEOUS Benefits Limited to Parties.......................................................................................................... 53 Successor is Deemed Included in All References to Predecessor ..........................................53 Defeasance of Bonds.................................................................................................................... 53 Execution of Documents and Proof of Ownership by Owners..............................................54 Disqualified Bonds....................................................................................................................... 54 Waiver of Personal Liability....................................................................................................... 54 Destruction of Canceled Bonds.................................................................................................. 54 Notices...................................................................................................................... .....................55 -ii- Section 9.09. Section 9.10. Section 9.11. Section 9.12. Section 9.13. Section 9.14. Section 9.15. CUSIP Numbers ........................................................................................................................... 55 Partial Invalidity..................................................................................................................... ......55 Unclaimed Moneys ...................................................................................................................... 55 Payment on Business Days......................................................................................................... 56 Article and Section Headings and References..........................................................................56 Execution in Counterparts.......................................................................................................... 56 Governing Law ............................................................................................................................. 56 EXHIBIT A - FORM OF 2006 BONDS -iii- INDENTURE OF TRUST THIS INDENTURE OF TRUST (this "Indenture"), dated as of December 1, 2006, is by and between the REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA, a public body corporate and politic duly organized and existing under the laws of the State of California (the "Agency"), and U.s. BANK NATIONAL ASSOCIATION, a national banking association organized and existing under the laws of the United States of America, as trustee (the "T t ") fUS ee . RECITALS: WHEREAS, the Agency is a public body, corporate and politic, duly established and authorized to transact business and exercise powers under and pursuant to the provisions of the Redevelopment Law of the State of California, constituting Part 1 of Division 24 of the Health and Safety Code of the State of California (the "Redevelopment Law"), including the power to issue bonds for any of its corporate purposes; and WHEREAS, a redevelopment plan (the "Redevelopment Plan") for the Agency's Temecula Redevelopment Project No.1 (the "Redevelopment Project") has been adopted under the Redevelopment Law pursuant to all applicable requirements of the Redevelopment Law; and WHEREAS, the Agency has determined to issue its $____ aggregate initial principal amount of Redevelopment Agency of the City of Temecula Temecula Redevelopment Project No.1 2006 Tax Allocation Bonds, Series B (Subordinate Lien) (the "2006 Bonds") under the provisions of the Redevelopment Law to finance redevelopment activities within or of benefit to the Redevelopment Project; and WHEREAS, concurrently with the issuance of the 2006 Bonds, the Agency is issuing its Redevelopment Agency of the City of Temecula Temecula Redevelopment Project No.1 2006 Tax Allocation Bonds, Series A (the 2006 Senior Bonds), pursuant to the Senior Indenture (as defined herein), which bonds are secured (along with the other Senior Bonds, as such term is defined herein) by a pledge of the Tax Increment Revenues (as defined herein) which is senior to the pledge of Tax Increment Revenues to the repayment of the 2006 Bonds; and WHEREAS, in order to provide for the authentication and delivery of the 2006 Bonds, to establish and declare the terms and conditions upon which the 2006 Bonds are to be issued and secured and to secure the payment of the principal thereof and interest and redemption premium (if any) thereon, the Agency and the Trustee have duly authorized the execution and delivery of this Indenture; and WHEREAS, the Agency has determined that all acts and proceedings required by law necessary to make the 2006 Bonds, when executed by the Agency, authenticated and delivered by the Trustee and duly issued, the valid, binding and legal special obligations of the Agency, and to constitute this Indenture a valid and binding agreement for the uses and purposes herein set forth in accordance with its terms, have been done or taken. -1- AGREEMENT: NOW, THEREFORE, in order to secure the payment of the principal of and the interest and redemption premium (if any) on all the Outstanding Bonds (as such terms are defined herein) under this Indenture according to their tenor, and to secure the performance and observance of all the covenants and conditions therein and herein set forth, and to declare the terms and conditions upon and subject to which the Bonds are to be issued and received, and in consideration of the premises and of the mutual covenants herein contained and of the purchase and acceptance of the Bonds by the Owners thereof, and for other valuable consideration the receipt and sufficiency of which is hereby acknowledged, the Agency and the Trustee do hereby covenant and agree with one another, for the benefit of the respective Owners from time to time of the Bonds, as follows: -2- ARTICLE I DEFINITIONS; RULES OF CONSTRUCTION Section 1.01. Definitions. Unless the context otherwise requires, the capitalized terms used in this Indenture, or any Supplemental Indenture, shall have the respective meanings which are given such terms in this Section 1.01. "Additional Allowance" means, as of the date of calculation, the sum of the following: (a) the amount of Tax Increment Revenues which, as shown in the report of an Independent Redevelopment Consultant, are estimated to be receivable by the Agency in the next succeeding Fiscal Year as a result of increases in the assessed valuation of taxable property in the Project Area due to construction which has been completed but has not yet been reflected on the tax roll; and (b) the amount of Tax Increment Revenues which, as shown in the report of an Independent Redevelopment Consultant, are estimated to be receivable by the Agency in the next succeeding Fiscal Year as a result of increases in the assessed valuation of taxable property in the Project Area due to inflation at an assumed annual inflation rate equal to the lesser of (i) the annual rate of inflation for the preceding twelve-month period for which figures are available or (ii) two percent (2%), but only if the rate of inflation had increased by at least two percent (2%) in each of the preceding three Fiscal Years. For purposes of this definition, the term "increases in the assessed valuation" means the amount by which the assessed valuation of taxable property in the Project Area in the next succeeding Fiscal Year is estimated to exceed the assessed valuation of taxable property in the Project Area (as reported by the County Auditor-Controller) in the Fiscal Year in which such calculation is made. "Agency" means the Redevelopment Agency of the City of Temecula, a public body corporate and politic duly organized and existing under the Redevelopment Law. "Annual Debt Service" means, for each Bond Year, the sum of (a) the interest payable on the Outstanding Bonds in such Bond Year, and (b) the principal amount of the Outstanding Bonds scheduled to be paid in such Bond Year upon the maturity or mandatory Sinking Account redemption thereof. "Annual Debt Service - Parity Debt" means, for each Bond Year, for the respective series of the Parity Debt the sum of (a) the interest payable on the Outstanding series of Parity Debt in such Bond Year, and (b) the principal amount of the Outstanding series of Parity Debt scheduled to be paid in such Bond Year upon the maturity or mandatory sinking account redemption thereof. "Annual Debt Service - Reserve Requirement" means, for each Tax Increment Calculation Year, the sum of (a) the interest payable on the Outstanding 2006 Bonds and 2006 -3- Senior Bonds in such Tax Increment Calculation Year, and (b) the principal amount of the outstanding 2006 Bonds and 2006 Senior Bonds scheduled to be paid in such Tax Increment Calculation Year upon the maturity or mandatory sinking account redemption thereof. "Bond Counsel" means (a) Quint & Thimmig LLP, or (b) any other attorney or firm of attorneys appointed by or acceptable to the Agency of nationally-recognized experience in the issuance of obligations the interest on which is excludable from gross income for federal income tax purposes under the Tax Code. "Bond Year" means any twelve-month period beginning on December 16 in any year and extending to the next succeeding December 15, both dates inclusive; except that the first Bond Year shall begin on the Closing Date and end on December 15, 2007. "Bonds" means, collectively, the 2006 Bonds and any Parity Debt. "Business Day" means a day of the year (other than a Saturday or Sunday) on which banks in California or the state where the Office of the Trustee is located, are not required or permitted to be closed, and on which the New York Stock Exchange is open. "Business Inventory Tax Subvention" means all amounts payable by the State to the Agency under and pursuant to the provisions of Chapter 1.5 of Part 1 of Division 4 of Title 2 (commencing with Section 16110) of the Government Code of the State. "Certificate of the Agency" means a certificate in writing signed by the Chairman, Executive Director, Treasurer or Secretary of the Agency, or any other officer of the Agency duly authorized by the Agency for that purpose. "City" means the City of Temecula, a municipal corporation organized and existing under the laws of the State. "Closing Date" means December __, 2006, being the date on which the 2006 Bonds are delivered by the Agency to the Original Purchaser. "Continuing Disclosure Certificate" shall mean that certain Continuing Disclosure Certificate executed by the Agency and dated the Closing Date with respect to the 2006 Bonds and the 2006 Senior Bonds (as defined in the fifth recital to this Indenture), as originally executed and as it may be amended from time to time in accordance with the terms thereof. "Costs of Issuance" means all items of expense directly or indirectly payable by or reimbursable to the Agency relating to the authorization, issuance, sale and delivery of the Bonds, including but not limited to the fees and expenses of the Original Purchaser, printing expenses, filing and recording fees, initial fees, expenses and charges of the Trustee and its counsel, including the Trustee's first annual administrative fee, acceptance fees, fees, charges and disbursements of attorneys, financial advisors, fiscal consultants, accounting firms, other consultants and other professionals, fees and charges for preparation, execution and safekeeping of the Bonds, rating agency fees, and any other cost, charge or fee in connection with the original issuance of the Bonds. -4- "Costs of Issuance Fund" means the fund by that name established and held by the Trustee pursuant to Section 3.03. "County" means the County of Riverside, a county duly organized and existing under the Constitution and laws of the State. "Debt Service Fund" means the fund by that name established and held by the Trustee pursuant to Section 4.03. "Defeasance Securities" means any of the following, or any combination thereof: (a) cash; (b) non-callable Federal Securities (including State and Local Government Securities); (c) direct obligations of the United States of America which have been stripped by the Department of the Treasury of the United States of America; (d) CATS, TIGRS and similar securities; (d) interest component of obligations of the Resolution Funding Corp. (REFCORP), which have been stripped by request to the Federal Reserve Bank of New York, (e) pre-refunded municipal bonds rated "Aaa" by Moody's and "AAA" by S&P; provided, however, if the issue is only rated by S&P (i.e., there is no Moody's rating), then the pre-refunded bonds must have been pre-refunded with cash, direct U.s. or U.s. guaranteed obligations, or AAA rated pre-refunded municipals, and (f) bonds, debentures, notes or other evidence of indebtedness issued or guaranteed by any of the following federal agencies and provided such obligations are backed by the full faith and credit of the United States of America: (i) direct obligations or fully guaranteed certificates of beneficial ownership of the U.s. Export-Import Bank; (ii) certificates of beneficial ownership of the Farmers Home Administration; (iii) obligations of the Federal Financing Bank; (iv) participation certificates of the General Services Administration; (v) guaranteed Title XI financings of the U.s. Maritime Administration; (vii) U.s. government guaranteed public housing notes and bonds; and (vii) project notes and local authority bonds of the U.s. Department of Housing and Urban Development. "Event of Default" means any of the events described in Section 8.01. "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 Tax 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 under the Tax 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 Tax 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 Investment Fund 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. -5- "Federal Securities" means: (a) any direct general obligations of the United States of America (including obligations issued or held in book entry form on the books of the Department of the Treasury of the United States of America), the payment of principal of and interest on which are unconditionally and fully guaranteed by the United States of America; (b) obligations of any agency or department of the United States of America which represent the full faith and credit of the United States of America or the timely payment of the principal of and interest on which are secured or guaranteed by the full faith and credit of the United States of America; and (c) any obligations issued by the State or any political subdivision thereof the payment of the principal of and interest and premium (if any) on which are fully secured by Federal Securities described in the preceding clauses (a) or (b). "Fiscal Year" means any twelve-month period beginning on July 1 in any year and extending to the next succeeding June 30, both dates inclusive, or any other twelve-month period selected and designated by the Agency as its official fiscal year period pursuant to a Certificate of the Agency filed with the Trustee. "Indenture" means this Indenture of Trust by and between the Agency and the Trustee, as amended or supplemented from time to time pursuant to any Supplemental Indenture entered into pursuant to the provisions hereof. "Independent Accountant" means any accountant or firm of such accountants duly licensed or registered or entitled to practice and practicing as such under the laws of the State, appointed by or acceptable to the Agency, and who, or each of whom: (a) is in fact independent and not under domination of the Agency; (b) does not have any substantial interest, direct or indirect, with the Agency; and (c) is not connected with the Agency as an officer or employee of the Agency, but who may be regularly retained to make reports to the Agency. "Independent Redevelopment Consultant" means any consultant or firm of such consultants appointed by or acceptable to the Agency and who, or each of whom: (a) is judged by the Agency to have experience in matters relating to the collection of Tax Increment Revenues or otherwise with respect to the financing of redevelopment projects; (b) is in fact independent and not under domination of the Agency; (c) does not have any substantial interest, direct or indirect, with the Agency other than as the Original Purchaser; and (d) is not connected with the Agency as an officer or employee of the Agency, but who may be regularly retained to make reports to the Agency. "Information Services" means Financial Information, Inc.'s "Daily Called Bond Service", 30 Montgomery Street, 10th Floor, Jersey City, New Jersey 07302, Attention: Editor; Moody's "Municipal and Government," 5250 77 Center Drive, Suite 150, Charlotte, NC 28217, Attention: Called Bonds Department; Kenny S&P, 55 Water Street, 45~ Floor, New York, New York 10041, Attention: Notification Department; and, in accordance with then current guidelines of the Securities and Exchange Commission, such other addresses and/or such other services providing information with respect to the redemption of bonds as the Agency may designate in a Request of the Agency delivered to the Trustee. "Interest Account" means the account by that name established and held by the Trustee pursuant to Section 4.03(a). -6- "Interest Payment Date" means June 15, 2007, and each June 15 and December 15 thereafter until the earlier of the redemption or maturity of the Bonds. "Maximum Annual Debt Service" means, as of the date of calculation, the largest amount obtained by totaling, for the current or any future Bond Year, the sum of (a) the amount of interest payable on the Bonds, the Senior Bonds and any outstanding Parity Debt in such Bond Year, assuming that principal of each thereof is paid as scheduled and that any mandatory sinking fund payments are made as scheduled, and (b) the amount of principal payable on the Bonds, the Senior Bonds and any outstanding Parity Debt in such Bond Year, including any principal required to be prepaid by operation of mandatory sinking fund payments. For purposes of such calculation there shall be excluded the principal of and interest on any Parity Debt to the extent the proceeds thereof are then deposited in an escrow fund from which amounts may not be released to the Agency unless the amount of Tax Increment Revenues for the most recent Fiscal Year (as evidenced in a written document from an appropriate official of the Agency), plus at the option of the Agency the Additional Allowance, at least equals one hundred one hundred ten percent (110%) of the sum of the amount of Maximum Annual Debt Service on the Bonds, the Senior Bonds and any Parity Debt (a portion of the proceeds of which were deposited to such escrow fund) which would result if the amount on deposit in the escrow fund were to be applied to redeem such Parity Debt. "Maximum Annual Debt Service - Parity Debt" means, as of the date of calculation, the largest amount obtained by totaling, for the current or any future Bond Year for the respective series of Parity Debt, the sum of (a) the amount of interest payable on the series of Parity Debt in such Bond Year, assuming that principal thereof is paid as scheduled and that any mandatory sinking fund payments are made as scheduled, and (b) the amount of principal payable on the series of Parity Debt in such Bond Year, including any principal required to be prepaid by operation of mandatory sinking fund payments. For purposes of such calculation there shall be excluded the principal of and interest on any respective series of Parity Debt to the extent the proceeds thereof are then deposited in an escrow fund from which amounts may not be released to the Agency unless the amount of Tax Increment Revenues for the most recent Fiscal Year (as evidenced in a written document from an appropriate official of the Agency), plus at the option of the Agency the Additional Allowance, at least equals one hundred one hundred ten percent (110%) of the sum of the amount of Maximum Annual Debt Service on the Bonds, the Senior Bonds and such series of Parity Debt (a portion of the proceeds of which were deposited to such escrow fund) which would result if the amount on deposit in the escrow fund were to be applied to redeem such Parity Debt. "Maximum Annual Debt Service - Reserve Requirement" means, as of the date of calculation, the largest amount obtained by totaling, for the current or any future Tax Increment Calculation Year, the sum of (a) the amount of interest payable on the 2006 Bonds and the 2006 Senior Bonds in such Tax Increment Calculation Year, assuming that principal of each thereof is paid as scheduled and that any mandatory sinking fund payments are made as scheduled, and (b) the amount of principal payable on the 2006 Bonds and the 2006 Senior Bonds in such Tax -7- Increment Calculation Year, including any principal required to be prepaid by operation of mandatory sinking fund payments. "Minimum Rating" means, with respect to any Permitted Investment that requires a Minimum Rating, a long-term rating of "A" or better from S&P or a short-term rating which is in the highest general rating category of S&P, in any event determined without regard to any refinement or gradation of such rating by a numerical modifier, a plus or a minus sign, or otherwise. "Moody's" means Moody's Investors Service of New York, New York, and its successors. "Office" means the corporate trust office of the Trustee at the location identified in Section 9.08 hereof, or at such other place or places as may be designated by the Trustee from time to time in written notice filed with the Agency. "Original Purchaser" means Stone & Youngberg LLC, as original purchaser of the 2006 Bonds. "Outstanding", when used as of any particular time with reference to Bonds, means (subject to the provisions of Section 9.05) all Bonds except: (a) Bonds theretofore canceled by the Trustee or surrendered to the Trustee for cancellation; (b) Bonds paid or deemed to have been paid within the meaning of Section 9.03; and (c) Bonds in lieu of or in substitution for which other Bonds shall have been authorized, executed, issued and delivered by the Agency and authenticated by the Trustee pursuant hereto. "Owner" means, with respect to any Bond, the person in whose name the ownership of such Bond shall be registered on the Registration Books. "Parity Debt" means, collectively (a) any loans, bonds, notes, advances or indebtedness payable from Tax Increment Revenues on a parity with the 2006 Bonds issued or incurred pursuant to and in accordance with the provisions of the first paragraph of Section 3.05, and (b) any Refunding Debt issued or incurred in accordance with the provisions of the second paragraph of Section 3.05. "Parity Debt Instrument" means any resolution, indenture of trust, trust agreement or other instrument authorizing the issuance and/ or execution and delivery of any Parity Debt. "Participating Underwriter" shall have the meaning ascribed thereto in the Continuing Disclosure Certificate. "Pass-Through Agreements" means, collectively, the following agreements: (a) Amended and Restated Agreement Between the County of Riverside, the Redevelopment Agency of the County of Riverside, the City of Temecula and the Redevelopment Agency of the City of Temecula for Reimbursement and Distribution of Tax Increment Funds from the Temecula Redevelopment Project, dated January 22, 2006; (b) Cooperation Agreement Between The Mt. San Jacinto Community College District, The County of Riverside and The Redevelopment Agency for the County of Riverside, dated August 23, 1988; (c) Cooperation -8- Agreement Between the Temecula Public Cemetery District, The County of Riverside and The Redevelopment Agency for the County of Riverside, dated August 1, 1988; (d) Cooperation Agreement Between Temecula Valley Unified School District, the County of Riverside and the Redevelopment Agency for the County of Riverside, dated April 17, 1991; (e) Cooperation Agreement Between the County Service Area No. 75, the County of Riverside and the Redevelopment Agency For the County of Riverside, dated August 4, 1988; (f) Cooperation Agreement Between the Eastern Municipal Water District, the County of Riverside and the Redevelopment Agency for the County of Riverside, dated October 3, 1988; and (g) Cooperation Agreement Between the Riverside County Flood Control and Water Conservation District, the County of Riverside and the Redevelopment Agency For the County of Riverside, dated November 1, 1988. "Permitted Investments" means any of the following which at the time of investment are legal investments under the laws of the State for the moneys proposed to be invested therein (provided, however, that the Trustee shall have no duty to determine such legality of any such investment, and may conclusively rely on a representation of the Agency with respect thereto), but only to the extent that the same are acquired at Fair Market Value: (a) Federal Securities; (b) bonds, debentures, notes or other evidence of indebtedness issued or guaranteed by any of the following federal agencies and provided such obligations are backed by the full faith and credit of the United States of America (stripped securities are only permitted if they have been stripped by the agency itself): (i) direct obligations or fully guaranteed certificates of beneficial ownership of the U.s. Export-Import Bank (Eximbank), (ii) certificates of beneficial ownership of the Farmers Home Administration; (iii) obligations of the Federal Financing Bank, (iv) debentures of the Federal Housing Administration (FHA); (v) participation certificates of the General Services Administration; (vi) guaranteed mortgage-backed bonds or guaranteed pass- through obligations (participation certificates) of the Government National Mortgage Association (GNMA); (vii) guaranteed Title XI financings of the U.s. Maritime Administration; and (viii) project notes, local authority bonds, new communities debentures (U.s. government guaranteed debentures) or U.s. public housing notes and bonds (U.s. government guaranteed public housing notes and bonds) of the U.s. Department of Housing and Urban Development (HUD); (c) bonds, debentures, notes or other evidence of indebtedness issued or guaranteed by any of the following non-full faith and credit U.s. government agencies (stripped securities are only permitted if they have been stripped by the agency itself): (i) senior debt obligations of the Federal Home Loan Bank System; (ii) participation certificates or senior debt obligations of the Federal Home Loan Mortgage Corporation (FHLMC); (iii) mortgaged-backed securities and senior debt obligations of the Federal National Mortgage Association (FNMA); (iv) senior debt obligations of the Student Loan Marketing Association (SLMA); (v) obligations of the Resolution Funding Corporation (REFCORP), and (v) consolidated systemwide bonds and notes of the Farm Credit System; -9- (d) money market funds registered under the Federal Investment Company Act of 1940, whose shares are registered under the Federal Securities Act of 1933, and having a rating by S&P of "AAAm-G," "AAAm" or "AAm" and, if rated by Moody's, having a rating by Moody's of "Aaa," "Aal" or "Aa2," including money market funds from which the Trustee or its affiliates derive a fee for investment advisory or other services to the fund; (e) certificates of deposit secured at all times by collateral described in (a) or (b) above, issued by commercial banks, savings and loan associations or mutual savings banks (such collateral must be held by a third party and the Trustee must have a perfected first security interest in such collateral); (f) certificates of deposit, savings accounts, deposit accounts or money market deposits which are fully insured by the Federal Deposit Insurance Corporation, including BIF and SAIF, including those of the Trustee or its affiliates; (g) Investment agreements, including guaranteed investment contracts, with (i) a domestic or foreign bank or corporation (other than a life or property casualty insurance company) the long-term debt of which, or, in the case of a guaranteed corporation the long term debt is rated at least "AA" by S&P and "Aa2" by Moody's; or (ii) a monoline municipal bond insurance company or a subsidiary thereof whose claims paying ability is rated at least "AN' by S&P and "Aa2" by Moody's; provided, that in all cases, by the terms of the investment agreement: (A) the invested funds are available for withdrawal without penalty or premium, at any time upon not more than seven days' prior notice; (B) the investment agreement shall state that it is the unconditional and general obligation of, and is not subordinated to any other obligation of, the provider thereof; (C) a fixed guaranteed rate of interest is to be paid on invested funds and all future deposits, if any, required to be made to restore the amount of such funds to the level specified under this Indenture; (D) the Trustee receives the opinion of domestic counsel that such investment agreement is legal, valid, binding and enforceable upon the provider in accordance with its terms and of foreign counsel (if applicable); (E) the investment agreement shall provide that if during its term: (1) the provider's rating by either S&P or Moody's falls below "AA-" or "Aa3" respectively, the provider must, at the direction of the Agency or the Trustee, within 10 days of receipt of such direction, either (i) collateralize the investment agreement by delivering or transferring in accordance with applicable state and federal laws (other than by means of entries on the provider's books) to the Trustee or its agent Permitted Collateral which are free and clear of any third-party liens or claims at -10- the Collateral Levels set forth below; or (ii) repay the principal of and accrued but unpaid interest on the investment, (2) the provider's rating by either Moody's or S&P is withdrawn or suspended or falls below "A-" or "A3" by S&P or Moody's, as appropriate, the provider must, at the direction of the Agency or the Trustee, within 10 days of receipt of such direction, repay the principal of and accrued but unpaid interest on the investment in either case with no penalty or premium to the Agency or Trustee; (F) The investment agreement shall state that the Trustee has a perfected first priority security interest in the Permitted Collateral, any substituted collateral and all proceeds thereof (in the case of bearer securities, this means the trustee is in possession); and (G) the investment agreement must provide that if during its term (1) the provider shall default in its payment obligations, the provider's obligations under the investment agreement shall, at the direction of the Agency or the Trustee, be accelerated and amounts invested and accrued but unpaid interest thereon shall be repaid to the Trustee; (2) the provider shall become insolvent, not pay its debts as they become due, be declared or petition to be declared bankrupt, etc. (" event of insolvency"), the provider's obligations shall automatically be accelerated and amounts invested and accrued but unpaid interest thereon shall be repaid to the Trustee; (3) the provider fails to perform any of its obligations under the Investment Agreement (other than obligations related to payment or rating) and such breach continues for ten (10) Business Days or more after written notice thereof is given by the Agency or the Trustee to the provider, it shall be an Event of Default; or (4) a representation or warranty made by the provider proves to have been incorrect or misleading in any material respect when made, it shall be an event of default Permitted collateral for investment agreements ("Permitted Collateral") includes, and "Collateral Levels" for purposes of the foregoing are: A. U.s. direct Treasury obligations, B. Senior debt and/or mortgage backed obligations of GNMA, FNMA or FHLMC and other government sponsored agencies backed by the full faith and credit of the U.s. government. -11- C. Collateral levels must be 104% of the total principal deposited under the investment agreement for U.s. direct Treasury obligations, GNMA obligations and full faith and credit U.s. government obligations and 105% of the total principal deposited under the investment agreement for FNMA and FHLMC. D. The collateral must be held by the Trustee or a third party on behalf of the Trustee, and marked to market at least weekly. (Ii) commercial paper rated, at the time of purchase, "Prime-I" by Moody's and "A-l+" or better by S&P; (i) bonds or notes issued by any state or municipality which, at the time of purchase, are rated by Moody's and S&P in one of the two highest long term rating categories assigned by such agencies; G) federal funds or bankers acceptances with a maximum term of one year of any bank which has an unsecured, uninsured and unguaranteed obligation rating of "Prime- I" or "A3" or better by Moody's and "A-l+" or better by S&P; (k) repurchase agreements for thirty days or less which provide for the transfer of securities from a dealer bank or securities firm (seller/borrower) to the Trustee and the transfer of cash from the Trustee to the dealer bank or securities firm with an agreement that the dealer bank or securities firm will repay the cash plus a yield to the Trustee in exchange for the securities at a specified date, which satisfy the following criteria: (i) repurchase agreements must be between the Trustee and (A) a primary dealer on the Federal Reserve reporting dealer list which is rated "A" or better by Moody's and S&P, or (B) a bank rated "A" or better by Moody's and S&P; (ii) the written repurchase agreement contract must include the following: (A) securities acceptable for transfer, which may be direct U.s. government obligations, or federal agency obligations backed by the full faith and credit of the U.s. government (including FNMA and the FHLMC); (B) the term of the repurchase agreement may be up to 30 days; (C) the collateral must be delivered to the Trustee or a third party acting as agent for the Trustee before or simultaneous with payment (perfection by possession of certificated securities); (D) the Trustee must have a perfected first priority security interest in the collateral; (E) the collateral must be free and clear of third-party liens and, in the case of a broker which falls under the jurisdiction of the Securities Investors Protection Corporation, are not subject to a repurchase agreement or a reverse repurchase agreement; (F) failure to maintain the requisite collateral percentage, after a two day restoration period, will require the Trustee to liquidate the collateral; (G) the securities must be valued weekly, marked-to-market at current market price plus accrued interest and the value of collateral must be equal to 104% of the amount of cash transferred by the Trustee to the dealer bank or -12- securities firm under the repurchase agreement plus accrued interest (unless the securities used as collateral are obligations of the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation, in which case the collateral must be equal to 105% of the amount of cash transferred by the Trustee to the dealer bank or securities firm under the repurchase agreement plus accrued interest). If the value of securities held as collateral falls below 104% (or 105%, if applicable) of the value of the cash transferred by the Trustee, then additional cash and/ or acceptable securities must be transferred; and (iii) a legal opinion must be delivered to the Trustee to the effect that the repurchase agreement meets guidelines under state law for legal investment of public funds; (I) Shares in a California common law trust established pursuant to Title 1, Division 7, Chapter 5 of the California Government Code which invests exclusively in investments permitted by Section 53635 of Title 5, Division 2, Chapter 4 of the California Government Code, as it may be amended, including but not limited to the California Arbitrage Management Program (CAMP); (m) The Local Agency Investment Fund of the State of California, created pursuant to Section 16429.1 of the California Government Code, to the extent the Trustee is authorized to register such investment in its name; and (n) any other lawful investment for Agency funds. "Plan Limitations" means the limitations contained or incorporated in the Redevelopment Plan on (a) the aggregate principal amount of indebtedness payable from Tax Increment Revenues which may be outstanding at any time, (b) the aggregate amount of taxes which may be divided and allocated to the Agency pursuant to the Redevelopment Plan, (c) the period of time for establishing indebtedness payable from Tax Increment Revenues, and (d) the period of time for repaying indebtedness payable from Tax Increment Revenues. Plan limitations shall also include those imposed under the Judgement, dated June 5, 1991, entered by the Superior Court of the State of California for the County of Riverside (the "Court") in Case No. 194468MF194948, Dawes v. the Redevelopment Agency of the County of Riverside, as modified by the Modification of Judgement, entered by the Court in 1995, and as it may be further modified by the Court. "Principal Account" means the account by that name established and held by the Trustee pursuant to Section 4.03(b). "Private Business Use" means use directly or indirectly in a trade or business carried on by a natural person or in any activity carried on by a person other than a natural person, excluding use by a governmental unit and use by any person as a member of the general public. "Project Area" means the Redevelopment Project area described in the Redevelopment Plan. -13- "Project Fund" means the fund by that name established and held by the Trustee pursuant to Section 3.04. "Oualified Reserve Account Credit Instrument" means an irrevocable standby or direct- pay letter of credit or surety bond issued by a commercial bank or insurance company and deposited with the Trustee pursuant to Section 4.03(d), provided that all of the following requirements are met: (a) the long-term credit rating or claims paying ability of such bank or insurance company is in the highest rating category by S&P and Moody's and, if rated by A.M. Best & Company, also rated in the highest category by A.M. Best & Company; (b) such letter of credit or surety bond has a term of at least twelve (12) months; (c) such letter of credit or surety bond has a stated amount at least equal to the portion of the Reserve Requirement with respect to which funds are proposed to be released pursuant to Section 4.03(d); and (d) the Trustee is authorized pursuant to the terms of such letter of credit or surety bond to draw thereunder an amount equal to any deficiencies which may exist from time to time in the Interest Account, the Principal Account or the Sinking Account for the purpose of making payments required pursuant to Section 4.03. "Record Date" means, with respect to any Interest Payment Date, the close of business on the first calendar day of the month in which such Interest Payment Date occurs, whether or not such first calendar day is a Business Day. "Redemption Account" means the account by that name established and held by the Trustee pursuant to Section 4.03(e). "Redevelopment Law" means the Redevelopment Law of the State, constituting Part 1 of Division 24 of the Health and Safety Code of the State, and the acts amendatory thereof and supplemental thereto. "Redevelopment Plan" means the Redevelopment Plan for the Temecula Redevelopment Project No.1 of the Agency, approved by Ordinance No. 658 enacted by the Board of Supervisors of the County on July 12, 1988, and subsequently amended by Ordinance Nos. 91-15 and 94-33, adopted by the City Council of the City on April 9, 1991 and December 20,1994, respectively, together with any further amendments to any of such Redevelopment Plans hereafter duly authorized pursuant to the Redevelopment Law. "Redevelopment Project" means the undertaking of the Agency pursuant to the Redevelopment Plan and the Redevelopment Law for the redevelopment of the project area described in the Redevelopment Plan. "Refunding Debt" means any loan, bond, note, advance or indebtedness the proceeds thereof are used to refund all or a portion of any Parity Debt (and to pay costs of issuance of and fund a reserve fund for such Refunding Debt), and the debt service due on such Refunding Debt in any Bond Year in which the Refunding Debt is Outstanding is not greater than the debt service due in such Bond Year on the portion of the Parity Debt refunded with the proceeds of such Refunding Debt. "Registration Books" means the records maintained by the Trustee pursuant to Section 2.07 for the registration and transfer of ownership of the Bonds. -14- "Report" means a document in writing signed by an Independent Accountant or an Independent Redevelopment Consultant and including: (a) a statement that the person or firm making or giving such Report has read the pertinent provisions of this Indenture to which such Report relates; (b) a brief statement as to the nature and scope of the examination or investigation upon which the Report is based; and (c) a statement that, in the opinion of such person or firm, sufficient examination or investigation was made as is necessary to enable such person or firm to express an informed opinion with respect to the subject matter referred to in the Report. "Request of the Agency" means a request in writing signed by the Chairman, Executive Director, Treasurer or Secretary of the Agency, or any other officer of the Agency duly authorized by the Agency for that purpose. "Reserve Account" means the account by that name established and held by the Trustee pursuant to Section 4.03(d). "Reserve Requirement" means, as of the date of any calculation by the Agency, (i) the least of (a) Maximum Annual Debt Service - Reserve Requirement, or (b) one hundred twenty- five percent (125%) of average Annual Debt Service - Reserve Requirement, or (c) ten percent (10%) of the initial principal amount of the 2006 Bonds and the 2006 Senior Bonds; less (ii) the Reserve Requirement (as defined in the Senior Indenture) applicable to the 2006 Senior Bonds. As of the Closing Date, the Reserve Requirement is $____. Reserve Requirement - Parity Debt" means, as of the date of any calculation by the Agency, for any respective series of Parity Debt, the least of (a) Maximum Annual Debt Service - Parity Debt, or (b) one hundred twenty-five percent (125%) of average Annual Debt Service- Parity Debt, or (c) ten percent (10%) of the initial principal amount of the applicable Parity Debt. "Securities Depositories" means The Depository Trust Company, 711 Stewart Avenue, Garden City, New York 11530, Fax-(516) 227-4039 or 4190; Kenny S&P, 55 Water Street, 50~ Floor, New York, New York 10041-0099, Attention: Call Notification Department, Fax-(212) 855- 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 Agency may designate in a Request of the Agency delivered by the Agency to the Trustee. "Senior Bonds" means the 2006 Senior Bonds, and the 2002 Bonds and any Parity Debt (as such terms as defined in the Senior Indenture). "Senior Indenture" means the Indenture of Trust, dated as of April 1, 2002, between the Agency and the Senior Trustee, as amended and supplemented by the First Supplemental Indenture of Trust, dated as of December 1, 2006, between the Agency and the Senior Trustee. "Senior Obligations" means, collectively, the Senior Indenture, any superior debt incurred in compliance with the provisions of Section 5.02, together with the Financial Guaranty Agreement, the 2006 Financial Guaranty Agreement and any other Qualified Reserve Account Credit Instrument, as such terms are defined in the Senior Indenture. -15- "Senior Trustee" means the entity acting as Trustee under and as such term is defined in the Senior Indenture. "Sinking Account" means the account by that name established and held by the Trustee pursuant to Section 4.03(c). "Special Fund" means the fund by that name established and held by the Agency pursuant to Section 4.02. "S&P" means Standard & Poor's Ratings Group, a division of The McGraw-Hill Companies, Inc., New York, New York, and its successors. "State" means the State of California. "Subordinate Debt" means any loans, advances or indebtedness issued or incurred by the Agency in accordance with the requirements of Section 3.06, which are either: (i) payable from, but not secured by a pledge of or lien upon, the Tax Increment Revenues; or (ii) secured by a pledge of or lien upon the Tax Increment Revenues which is subordinate to the pledge of and lien upon the Tax Increment Revenues hereunder for the security of the Bonds. "Supplemental Indenture" means any resolution, agreement or other instrument which amends, supplements or modifies this Indenture and which has been duly adopted or entered into by the Agency; but only if and to the extent that such Supplemental Indenture is specifically authorized hereunder. "Tax Code" means the Internal 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 Tax Code (including the Tax Regulations). "Tax Increment Calculation Year" means any twelve-month period beginning on August 2 in any year and extending to the next succeeding August 1, both dates inclusive; except that the first Bond Year shall begin on the Closing Date and end on August 1, 2007. "Tax Increment Revenues" means all taxes annually allocated and paid to the Agency with respect to the Project Area pursuant to Article 6 of Chapter 6 (commencing with Section 33670) of the Redevelopment Law and Section 16 of Article XVI of the Constitution of the State including all payments, subventions and reimbursements (if any) to the Agency specifically attributable to ad valorem taxes lost by reason of tax exemptions and tax rate limitations; but excluding (a) amounts of such taxes required to be deposited into the Low and Moderate Income Housing Fund of the Agency in any Fiscal Year pursuant to Section 33334.3 of the Redevelopment Law to the extent not eligible under the Redevelopment Law for the payment of debt service on the Bonds, (b) all amounts of such taxes required to be paid by the Agency pursuant to any Pass-Through Agreement (to the extent that the payments thereunder are not subordinated to the Agency's obligation to repay the Bonds), and (c) the Business Inventory Tax Subvention. -16- "Tax Regulations" means temporary and permanent regulations promulgated under Section 103 and all related provisions of the Tax Code. "Tax Revenue Certificate" means a Certificate of the Agency identifying the amount of all Tax Increment Revenues received or to be received by the Agency in the then current Fiscal Year. "Term Bonds" means, collectively, (a) the 2006 Bonds maturing on December 15, __ and December 15, 2038, and (b) any maturity of Parity Debt which is subject to mandatory Sinking Account redemption pursuant to the Parity Debt Instrument authorizing the issuance thereof. "Trustee" means U.s. Bank National Association, as Trustee hereunder, or any successor thereto appointed as Trustee hereunder in accordance with the provisions of Article VI. "2006 Bonds" means the Redevelopment Agency of the City of Temecula Temecula Redevelopment Project No.1 2006 Tax Allocation Bonds, Series B (Subordinate Lien) issued and Outstanding under this Indenture. "2006 Senior Debt" means the Redevelopment Agency of the City of Temecula Temecula Redevelopment Project No. 1 2006 Tax Allocation Bonds, Series A, issued and Outstanding under the Senior Indenture. Section 1.02. Rules of Construction. All references herein to "Articles", "Sections" and other subdivisions are to the corresponding Articles, Sections or subdivisions of this Indenture, and the words "herein", "hereof", "herermderfl and other words of similar import refer to this Indenture as a whole and not to any particular Article, Section or subdivision hereof. -17- ARTICLE II AUTHORIZATION AND TERMS OF 2006 BONDS Section 2.01. Authorization and Purpose of 2006 Bonds. The Agency has reviewed all proceedings heretofore taken and has found, as a result of such review, and hereby finds and determines that all things, conditions and acts required by law to exist, happen or be performed precedent to and in connection with the issuance of the 2006 Bonds do exist, have happened and have been performed in due time, form and manner as required by law, and the Agency is now duly empowered, pursuant to each and every requirement of law, including the Redevelopment Law, to issue the 2006 Bonds in the manner and form provided in this Indenture. 2006 Bonds in the aggregate initial principal amount of ____ Million ____ Thousand Dollars ($____) are hereby authorized to be issued by the Agency under the Redevelopment Law for the purpose of making deposits to the Project Fund, the Costs of Issuance Fund and the Reserve Account, all as provided in Section 3.02. The 2006 Bonds shall be authorized and issued under, and shall be subject to the terms of, this Indenture and the Redevelopment Law. The 2006 Bonds shall be designated the "Redevelopment Agency of the City of Temecula Temecula Redevelopment Project No.1 2006 Tax Allocation Bonds, Series B (Subordinate Lien)." Section 2.02. Terms of the 2006 Bonds. The 2006 Bonds shall be issued in fully registered form without coupons in denominations equal to $5,000 or any integral multiple thereof. No 2006 Bond shall have more than one maturity date. The 2006 Bonds shall be dated the Closing Date, and shall be in the principal amounts, shall mature on December 15 in the years, and shall bear interest (calculated on the basis of a 360-day year comprised of twelve 30- day months) at the respective rates of interest per annum as follows: -18- Maturity Date (December 15) Principal Amount Interest Rate Interest on the 2006 Bonds shall be payable from the Interest Payment Date next preceding the date of authentication thereof unless (i) a 2006 Bond is authenticated on or before an Interest Payment Date and after the close of business on the preceding Record Date, in which event it shall bear interest from such Interest Payment Date, (ii) a 2006 Bond is authenticated on or before the Record Date preceding the first Interest Payment Date, in which event interest thereon shall be payable from the Closing Date, or (iii) interest on any 2006 Bond is in default as of the date of authentication thereof, in which event interest thereon shall be payable from the date to which interest has been paid in full, payable on each Interest Payment Date. Interest shall be paid on each Interest Payment Date to the persons in whose names the ownership of the 2006 Bonds is registered on the Registration Books at the close of business on the immediately preceding Record Date, except as provided below. Interest on any 2006 Bond which is not punctually paid or duly provided for on any Interest Payment Date shall be payable to the person in whose name the ownership of such 2006 Bond is registered on the Registration Books at the close of business on a special record date for the payment of such defaulted interest to be fixed by the Trustee, notice of which shall be given to such Owner not less than ten (10) days prior to such special record date. Interest on the 2006 Bonds shall be paid by check of the Trustee mailed by first class mail, postage prepaid, on each Interest Payment Date to the Owners of the 2006 Bonds at their respective addresses shown on the Registration Books as of the close of business on the preceding Record Date; provided, however, that at the written request of the Owner of Bonds in an aggregate principal amount of at least $1,000,000, which written request is on file with the Trustee as of any Record Date, and as otherwise provided in Section 2.10, interest on the applicable Bonds shall be paid on each succeeding Interest Payment Date by wire transfer in immediately available funds to such account within the United States of America as shall be specified in such written request (any such written request shall remain in effect until rescinded in writing by the Owner). The principal of and premium (if any) on the 2006 Bonds shall be -19- payable in lawful money of the United States of America by check of the Trustee upon presentation and surrender thereof at the Office of the Trustee. Section 2.03. Redemption of 2006 Bonds. (a) Optional Redemption of 2006 Bonds. The 2006 Bonds maturing on and after December 15, _, shall be subject to redemption in whole or in part on any date at the Request of the Agency, among maturities as determined by the Agency, and in any case by lot within a maturity, on or after December 15, __, at the option of the Agency from any available source of funds, at a redemption price equal to one hundred percent (100%) of the principal amount thereof to be redeemed together with accrued interest thereon to the redemption date, plus a redemption premium (expressed as a percentage of the principal amount of the Bonds to be redeemed) as set forth in the following table: Redemption Period Redemption Premium December 15, __ through December 14, __ % December 15, __ through December 14, __ December 15, __ and thereafter The Agency shall be required to give the Trustee written notice of its intention to redeem Bonds under this subsection (a), and the manner of selecting such Bonds for redemption from among the maturities thereof, at least forty-five (45) days prior to the date fixed for such redemption unless the Trustee otherwise agrees to a shorter period for such notice. (b) Mandatory Sinking Account Redemption of 2006 Bonds. The 2006 Bonds maturing on December 15, __ and December 15,2038 shall also be subject to redemption in whole, or in part by lot, on December 15, __ and December 15, __, respectively, and on December 15 in each year thereafter as set forth in the following tables, from Sinking Account payments made by the Agency pursuant to Section 4.03(c), at a redemption price equal to the principal amount thereof to be redeemed together with accrued interest thereon to the redemption date, without premium, or in lieu thereof shall be purchased pursuant to the succeeding paragraph of this subsection (b), in the aggregate respective principal amounts and on the respective dates as set forth in the following tables; provided, however, that if some but not all of such 2006 Bonds have been redeemed pursuant to subsection (a) above, the total amount of all future Sinking Account payments pursuant to this subsection (b) shall be reduced by the aggregate principal amount of such 2006 Bonds so redeemed, to be allocated among such Sinking Account payments in integral multiples of $5,000 as determined by the Agency (written notice of which determination shall be given by the Agency to the Trustee). -20- 2006 Bonds Maturing December 15,__ Sinking Account Redemption Date !December 15) Principal Amount To Be Redeemed 2006 Bonds Maturing December 15, 2038 Sinking Account Redemption Date !December 15) Principal Amount To Be Redeemed In lieu of redemption of the 2006 Bonds pursuant to the preceding paragraph, amounts on deposit in the Special Fund (to the extent not required to be transferred to the Trustee or the trustee for any Parity Debt pursuant to any Parity Debt Instrument during the then current Bond Year) may also be used and withdrawn by the Agency at any time prior to the selection of 2006 Bonds for redemption for the purchase of such 2006 Bonds at public or private sale as and when and at such prices (including brokerage and other charges and including accrued interest) as the Agency may in its discretion determine. The par amount of any of such 2006 Bonds so purchased by the Agency in any twelve-month period ending on November 1 in any year shall be credited towards and shall reduce the par amount of 2006 Bonds required to be redeemed pursuant to this subsection (b) on December 15 in such year, upon the presentation of the purchased 2006 Bonds to the Trustee on or prior to November 1 in any year. (c) Notice of Redemption. The Trustee on behalf and at the expense of the Agency shall mail (by first class mail, postage prepaid) notice of any redemption at least thirty (30) but not more than sixty (60) days prior to the redemption date, to (i) the Owners of any 2006 Bonds designated for redemption at their respective addresses appearing on the Registration Books, and (ii) the Securities Depositories and to one or more Information Services; provided, however, that such mailing shall not be a condition precedent to such redemption and neither failure to receive any such notice nor any defect therein shall affect the validity of the proceedings for the -21- redemption of such 2006 Bonds or the cessation of the accrual of interest thereon. Such notice shall state the redemption date and the redemption price, shall designate the CUSIP number of the 2006 Bonds to be redeemed, shall state the individual number of each Bond to be redeemed or state that all 2006 Bonds between two stated numbers (both inclusive) or shall state that all of the 2006 Bonds Outstanding of one or more maturities are to be redeemed, and shall require that such 2006 Bonds be then surrendered at the Office of the Trustee for redemption at the said redemption price, giving notice also that further interest on the 2006 Bonds to be redeemed will not accrue from and after the date fixed for redemption. Notwithstanding the foregoing, in the case of any optional redemption of the 2006 Bonds under Section 2.03(a) above, the notice of redemption shall state that the redemption is conditioned upon receipt by the Trustee of sufficient moneys to redeem the 2006 Bonds on the anticipated redemption date, and that the optional redemption shall not occur if by no later than the scheduled redemption date sufficient moneys to redeem the 2006 Bonds have not been deposited with the Trustee. In the event that the Trustee does not receive sufficient funds by the scheduled optional redemption date to so redeem the 2006 Bonds to be optionally redeemed, the Trustee shall send written notice to the Owners of the 2006 Bonds, to the Securities Depositories and to one or more of the Information Services to the effect that the redemption did not occur as anticipated, and the 2006 Bonds for which notice of optional redemption was given shall remain Outstanding for all purposes of this Indenture. (d) Partial Redemption of Bonds. In the event only a portion of any 2006 Bond is called for redemption, then upon surrender thereof the Agency shall execute and the Trustee shall authenticate and deliver to the Owner thereof, at the expense of the Agency, a new 2006 Bond or 2006 Bonds of the same interest rate and maturity, of authorized denominations in aggregate principal amount equal to the unredeemed portion of the 2006 Bond to be redeemed. (e) Effect of Redemption. From and after the date fixed for redemption, if funds available for the payment of the redemption price of and interest on the 2006 Bonds so called for redemption shall have been duly deposited with the Trustee, such 2006 Bonds so called shall cease to be entitled to any benefit under this Indenture other than the right to receive payment of the redemption price and accrued interest to the redemption date, and no interest shall accrue thereon from and after the redemption date specified in such notice. (f) Manner of Redemption. Whenever provision is made in this Indenture for the redemption of less than all of the 2006 Bonds, unless otherwise provided herein, the Agency in its discretion shall determine the maturities to be redeemed by written notice to the Trustee, and the Trustee shall select the 2006 Bonds within a maturity to be redeemed by lot in any manner which the Trustee in its sole discretion shall deem appropriate. For purposes of such selection, all 2006 Bonds shall be deemed to be comprised of separate $5,000 denominations and such separate denominations shall be treated as separate 2006 Bonds which may be separately redeemed. Notwithstanding the foregoing, if for any reason the Agency fails to provide the Trustee with direction as to the maturities to be redeemed, the Trustee shall select the 2006 Bonds to be redeemed pro rata among maturities. Section 2.04. Form of 2006 Bonds; Authentication and Delivery. The 2006 Bonds, the form of Trustee's certificate of authentication, and the form of assignment to appear thereon, shall be substantially in the respective forms set forth in Exhibit A attached hereto and by this -22- reference incorporated herein, with necessary or appropriate variations, omissions and insertions, as permitted or required by this Indenture. The 2006 Bonds shall be executed on behalf of the Agency by the signature of its Chairman and the signature of its Secretary who are in office on the date of execution and delivery of this Indenture or at any time thereafter. Either or both of such signatures may be made manually or may be affixed by facsimile thereof. If any officer whose signature appears on any 2006 Bond ceases to be such officer before the Closing Date, such signature shall nevertheless be as effective as if the officer had remained in office until the Closing Date. Any 2006 Bond may be signed and attested on behalf of the Agency by such persons as at the actual date of the execution of such 2006 Bond shall be the proper officers of the Agency, duly authorized to execute debt instruments on behalf of the Agency, although on the date of such 2006 Bond any such person shall not have been such officer of the Agency. Only such of the 2006 Bonds as shall bear thereon a certificate of authentication in the form set forth in Exhibit A, manually executed and dated by the Trustee, shall be valid or obligatory for any purpose or entitled to the benefits of this Indenture, and such certificate of the Trustee shall be conclusive evidence that such 2006 Bonds have been duly authenticated and delivered hereunder and are entitled to the benefits of this Indenture. Section 2.05. Transfer of 2006 Bonds. Any 2006 Bond may, in accordance with its terms, be transferred, upon the Registration Books, by the person in whose name it is registered, in person or by a duly authorized attorney of such person, upon presentation of such Bond to the Trustee at its Office for cancellation, accompanied by delivery of a written instrument of transfer in a form acceptable to the Trustee, duly executed. The cost of printing 2006 Bonds and any services rendered or expenses incurred by the Trustee in connection with any transfer shall be paid by the Agency. The Trustee shall collect any tax or other governmental charge on the transfer of any 2006 Bonds pursuant to this Section 2.05. Whenever any 2006 Bond or 2006 Bonds shall be surrendered for transfer, the Agency shall execute and the Trustee shall authenticate and deliver to the transferee a new 2006 Bond or 2006 Bonds of like maturity and aggregate principal amount of authorized denominations. The Trustee may refuse to transfer, under the provisions of this Section 2.05, any 2006 Bonds selected by the Trustee for redemption pursuant to Section 2.03 or any 2006 Bonds during the period in which 2006 Bonds are selected for redemption. Section 2.06. Exchange of 2006 Bonds. The 2006 Bonds may be presented for exchange at the Office of the Trustee for a like aggregate principal amount of 2006 Bonds of other authorized denominations and of the same maturity. The Trustee shall collect any tax or other governmental charge on the exchange of any 2006 Bonds pursuant to this Section 2.06. The cost of printing 2006 Bonds and any services rendered or expenses incurred by the Trustee in connection with any exchange shall be paid by the Agency. The Trustee may refuse to exchange, under the provisions of this Section 2.06, any 2006 Bonds selected by the Trustee for redemption pursuant to Section 2.03 or any 2006 Bonds during the period in which 2006 Bonds are selected for redemption. -23- Section 2.07. Registration Books. The Trustee will keep or cause to be kept sufficient records for the registration and registration of transfer of the Bonds, which shall at all times during normal business hours, and upon reasonable notice, be open to inspection by the Agency; and, upon presentation for such purpose, the Trustee shall, under such reasonable regulations as it may prescribe, register or transfer or cause to be registered or transferred, on the Registration Books, Bonds as hereinbefore provided. Section 2.08. Temporary 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 denominations as may be determined by the Agency, and may contain such reference to any of the provisions of this Indenture as may be appropriate. Every temporary Bond shall be executed by the Agency upon the same conditions and in substantially the same manner as the definitive Bonds. If the Agency issues temporary Bonds it will execute and furnish definitive Bonds without delay, and thereupon the temporary Bonds shall be surrendered for cancellation, in exchange therefor at the Office of the Trustee, and the Trustee shall deliver in exchange for such temporary Bonds an equal aggregate principal amount of definitive Bonds of authorized denominations. Until so exchanged, the temporary Bonds shall be entitled to the same benefits pursuant to this Indenture as definitive Bonds authenticated and delivered hereunder. Section 2.09. Bonds Mutilated, Lost, Destroyed or Stolen. If any Bond shall become mutilated, the Agency, at the expense of the Owner of such Bond, shall execute, and the Trustee shall thereupon authenticate and deliver, a new Bond of like tenor in exchange and substitution for the Bond so mutilated, but only upon surrender to the Trustee of the Bond so mutilated. Every mutilated Bond so surrendered to the Trustee shall be canceled by it and delivered to, or upon the order of, the Agency. If any Bond shall be lost, destroyed or stolen, evidence of such loss, destruction or theft may be submitted to the Trustee and, if such evidence be satisfactory and indemnity for the Trustee and the Agency satisfactory to the Trustee shall be given, the Agency, at the expense of the Owner, shall execute, and the Trustee shall thereupon authenticate and deliver, a new Bond of like tenor and series in lieu of and in substitution for the Bond so lost, destroyed or stolen. The Trustee may require payment of a sum not exceeding the actual cost of preparing each new Bond issued under this Section and of the expenses which may be incurred by the Trustee in connection therewith. Any Bond issued under the provisions of this Section in lieu of any Bond alleged to be lost, destroyed or stolen shall constitute an original additional contractual obligation on the part of the Agency whether or not the Bond so alleged to be lost, destroyed or stolen be at any time enforceable by anyone, and shall be equally and proportionately entitled to the benefits of this Indenture with all other Bonds issued pursuant to this Indenture. Notwithstanding any other provision of this Section 2.09, in lieu of delivering a new Bond for which principal has or is about to become due for a Bond which has been mutilated, lost, destroyed or stolen, the Trustee may make payment of such Bond in accordance with its terms upon receipt of the above-described indemnity. -24- Section 2.10. Use of Depository. Notwithstanding any provision of this Indenture to the contrary: (a) At the request of the Original Purchaser, the 2006 Bonds shall be initially issued registered in the name of "Cede & Co.," as nominee of The Depository Trust Company, the depository designated by the Original Purchaser, and shall be evidenced by one 2006 Bond for each maturity, as set forth in Section 2.02. Registered ownership of such 2006 Bonds, or any portions thereof, may not thereafter be transferred except: (i) to any successor of The Depository Trust Company or its nominee, or of any substitute depository designated pursuant to paragraph (ii) of this subsection (a) ("substitute depository"); provided that any successor of The Depository Trust Company or substitute depository shall be qualified under any applicable laws to provide the service proposed to be provided by it; (ii) to any substitute depository designated in a Request of the Agency, upon (i) the resignation of The Depository Trust Company or its successor (or any substitute depository or its successor) from its functions as depository or (ii) a determination by the Agency that The Depository Trust Company or its successor is no longer able to carry out its functions as depository; provided that any such substitute depository shall be qualified under any applicable laws to provide the services proposed to be provided by it; or (iii) to any person as provided below, upon (A) the resignation of The Depository Trust Company or its successor (or any substitute depository or its successor) from its functions as depository or (B) a determination by the Agency that The Depository Trust Company or its successor is no longer able to carry out its functions as depository; provided that no substitute depository which is not objected to by the Agency and the Trustee can be obtained. (b) In the case of any transfer pursuant to paragraph (i) or paragraph (ii) of subsection (a) of this Section 2.10, upon receipt of all Outstanding 2006 Bonds by the Trustee, together with a Request of the Agency to the Trustee, a single new 2006 Bond shall be executed and delivered, registered in the name of such successor or such substitute depository or their nominees, as the case may be, all as specified in such Written Request of the Agency. In the case of any transfer pursuant to paragraph (iii) of subsection (a) of this Section 2.10, upon receipt of all Outstanding 2006 Bonds by the Trustee together with a Request of the Agency, new 2006 Bonds shall be executed and delivered in such denominations and registered in the names of such persons as are requested in a Request of the Agency provided the Trustee shall not be required to deliver such new 2006 Bonds within a period less than sixty (60) days from the date of receipt of such a Request of the Agency. (c) In the case of partial redemption or an advance refunding of any 2006 Bonds evidencing all of the principal maturing in a particular year, The Depository Trust Company shall deliver the 2006 Bonds to the Trustee for cancellation and re-registration to reflect the amounts of such reduction in principal. -25- (d) The Agency and the Trustee shall be entitled to treat the person in whose name any 2006 Bond is registered as the absolute Owner thereof for all purposes of this Indenture and any applicable laws, notwithstanding any notice to the contrary received by the Trustee or the Agency; and the Agency and the Trustee shall have no responsibility for transmitting payments to, communication with, notifying or otherwise dealing with any beneficial owners of the 2006 Bonds. Neither the Agency nor the Trustee will have any responsibility or obligations, legal or otherwise, to the beneficial owners or to any other party including The Depository Trust Company or its successor (or substitute depository or its successor), except for the registered owner of any 2006 Bond. (e) So long as all Outstanding 2006 Bonds are registered in the name of Cede & Co. or its registered assign, the Agency and the Trustee shall reasonably cooperate with Cede & Co., as sole registered Owner, or its registered assign in effecting payment of the principal and interest due with respect to the 2006 Bonds by arranging for payment in such manner that funds for such payments are properly identified and are made immediately available on the date they are due. (f) So long as all Outstanding 2006 Bonds are registered in the name of Cede & Co. or its registered assign (hereinafter, for purposes of this paragraph (f), the "Ownerfl): (i) All notices and payments addressed to the Owners shall contain the 2006 Bonds' CUSIP number. (ii) Notices to the Owner shall be forwarded in the manner set forth in the form of Blanket Issuer Letter of Representations executed by the Agency and received and accepted by The Depository Trust Company. -26- ARTICLE III DEPOSIT AND APPLICATION OF PROCEEDS OF 2006 BONDS ISSUANCE OF PARITY DEBT Section 3.01. Issuance of 2006 Bonds. Upon the execution and delivery of this Indenture, the Agency shall execute and deliver the 2006 Bonds in the aggregate initial principal amount of ____ Million ____ Thousand Dollars ($____) to the Trustee and the Trustee shall authenticate and deliver the 2006 Bonds to the Original Purchaser upon receipt of a Request of the Agency therefor. Section 3.02. Deposit and Application of Proceeds. On the Closing Date, the proceeds of sale of the 2006 Bonds (being $____) shall be paid to the Trustee and deposited by the Trustee as follows: (a) The Trustee shall deposit the amount of $____ in the Project Fund. (b) The Trustee shall deposit the amount of $____ in the Costs of Issuance Fund. (c) The Trustee shall deposit the amount of $____ in the Reserve Account. The Trustee may, in its discretion, establish a temporary fund or account in its books and records to facilitate such transfers. Section 3.03. Costs of Issuance Fund. There is hereby established a separate fund to be known as the "Costs of Issuance Fund", which shall be held by the Trustee in trust. The Trustee shall deposit in the Costs of Issuance Fund the amount specified in Section 3.02(b). The moneys in the Costs of Issuance Fund shall be used and withdrawn by the Trustee from time to time to pay the Costs of Issuance upon submission of a Request of the Agency stating (a) the person to whom payment is to be made, (b) the amount to be paid, (c) the purpose for which the obligation was incurred, (d) that such payment is a proper charge against the Costs of Issuance Fund, and (e) that such amounts have not been the subject of a prior Request of the Agency. On the earlier of (i) the date which is six (6) months following the Closing Date, or (ii) the date of receipt by the Trustee of a Request of the Agency therefor, all amounts (if any) remaining in the Costs of Issuance Fund shall be withdrawn therefrom by the Trustee and transferred to the Project Fund. Section 3.04. Project Fund. There is hereby established a separate fund to be known as the "Project Fund", which shall be held by the Trustee. Amounts deposited to the Project Fund pursuant to Section 3.02(a) shall be transferred by the Trustee to the Agency from time to time, upon receipt by the Trustee of a Request of the Agency which specifies the amount to be withdrawn. The Agency shall use all amounts withdrawn from the Project Fund for the financing of the Redevelopment Project. The Agency shall maintain records as to the disposition of all amounts transferred to it by the Trustee pursuant to this Section 3.04, in sufficient detail as necessary to comply with the requirements of the Redevelopment Law. -27- Section 3.05. Issuance of Parity Debt. The Agency may issue or incur Parity Debt in such principal amount as shall be determined by the Agency, subject only to the following conditions: (a) No Event of Default shall have occurred and be continuing, and the Agency shall otherwise be in compliance with all covenants set forth in this Indenture. (b) Subject to paragraph (d) below, the Tax Increment Revenues for the then current Fiscal Year (based on the assessed valuation of property in the Project Area as evidenced in a written document from an appropriate official of the County) plus at the option of the Agency the Additional Allowance, shall be at least equal to one hundred ten percent (110%) of the Maximum Annual Debt Service on the Bonds, the Senior Bonds and such new Parity Debt. (c) Subject to paragraph (d) below, the issuance of such Parity Debt shall not cause the Agency to exceed any applicable Plan Limitations. Without limiting the generality of the foregoing, the Agency shall not issue or execute and deliver any Parity Debt in the event and to the extent that either (i) the sum of the aggregate amount of debt service on all outstanding obligations of the Agency payable from Tax Increment Revenues, including such Parity Debt, exceeds the aggregate amount of Tax Increment Revenues which are eligible to be allocated and paid to the Agency while such obligations remain outstanding, or (ii) the aggregate principal amount of all outstanding obligations of the Agency, including such Parity Debt, exceeds any applicable limit in the Redevelopment Plan on the aggregate principal amount of indebtedness which the Agency is permitted to have outstanding at anyone time. (d) In computing the Maximum Annual Debt Service on the Bonds, the Senior Bonds and the Parity Debt for purposes of paragraph (b) above, and the debt service for purposes of paragraph (c) above, if interest on any Bonds, Senior Bonds or the Parity Debt is payable at a variable rate or is otherwise incapable of determination, (A) if the Agency has entered into a variable to fixed swap arrangement with respect to such Bonds, Senior Bonds or Parity Debt the term of which extends for the term of such Bonds, Senior Bonds or Parity Debt and payments by the counterparty on the swap arrangement are guaranteed or insured by an entity whose unsecured debt obligations are rated in the highest rating category by Moody's and S&P, the maximum annual debt service due by the Agency under the swap arrangement shall be used rather than the maximum annual debt service on such Bonds, Senior Bonds or Parity Debt, or (B) the Bonds, Senior Bonds or Parity Debt shall be assumed to bear interest at a fixed rate equal to the average of the daily interest rate on such Bonds during the three year period preceding the first day of the month in which the determination is made (and, if such Bonds, Senior Bonds or Parity Debt have not been outstanding for the entire 3 year period, for the portion of such time period such Bonds, Senior Bonds or Parity Debt were not outstanding, the interest rate on a debt instrument or similar credit quality and maturity as determined by an Independent Redevelopment Consultant). -28- (e) The related Parity Debt Instrument shall provide that: (i) Interest on such Parity Debt shall be payable on June 15 and December 15 in each year in which interest is payable on such Parity Debt except the first twelve month period, during which interest may be payable on any June 15 or December 15 and provided that (A) there shall be no requirement that such Parity Debt pay interest on a current basis and (B) the interest rate on all Parity Debt shall be fixed for the term of the Parity Debt; (ii) The principal of such Parity Debt shall be payable on December 15 in any year in which principal is payable; and (iii) Money (and/or a Qualified Reserve Fund Credit Instrument) shall be deposited in the Reserve Account, or in a separate subaccount therein established for the benefit of the Parity Debt, in an amount equal to the initial Reserve Requirement - Parity Debt applicable to such Parity Debt. (f) The Agency shall deliver to the Trustee a Certificate of the Agency certifying that the conditions precedent to the issuance of such Parity Debt set forth in subsections (a), (b), (c) and (e) above have been satisfied. Notwithstanding the foregoing, the Agency may issue or incur Refunding Debt in such principal amount as shall be determined by the Agency so long as the conditions set forth in subsections (a), (c) and (e) above are met, and the Agency delivers to the Trustee a Certificate of the Agency certifying that such conditions precedent to the issuance of such Refunding Debt set forth in subsections (a), (c) and (e) above have been met and such Refunding Debt is otherwise in accordance with the definition of Refunding Debt. Section 3.06. Issuance of Subordinate Debt. From time to time the Agency may issue or incur Subordinate Debt in such principal amount as shall be determined by the Agency; provided that (a) the Agency shall be in compliance with all of its covenants set forth in this Indenture and any Parity Debt Instruments, (b) the issuance of such Subordinate Debt (after taking into account the Bonds and all other obligations of the Agency payable from Tax Increment Revenues) shall not cause the Agency to exceed any applicable Plan Limitations, and (c) the Agency will at all times that the Bonds are Outstanding have sufficient capacity to receive Tax Increment Revenues in an amount at least equal to the remaining Debt Service on the Bonds. Section 3.07. Validity of Bonds. The validity of the authorization and issuance of the Bonds shall not be dependent upon the Redevelopment Project or upon the performance by any person of its obligation with respect to the Redevelopment Project. -29- ARTICLE IV SECURITY OF BONDS; FLOW OF FUNDS; INVESTMENTS Section 4.01. Security of Bonds; Equal Security. The Bonds shall be secured by a pledge of and lien on all of the Tax Increment Revenues, without preference or priority for series, issue, number, dated date, sale date, date of execution or date of delivery, subordinate to the pledge of and lien on the Tax Increment Revenues under the Senior Obligations. The Bonds shall be additionally secured by a first and exclusive pledge of and lien upon all of the moneys in the Reserve Account, the Special Fund, the Debt Service Fund, the Interest Account, the Principal Account, the Sinking Account and the Redemption Account. Except for the Tax Increment Revenues and amounts in the funds and accounts created hereunder including amounts in the Reserve Account and the Special Fund, no funds or properties of the Agency shall be pledged to, or otherwise liable for, the payment of principal of or interest or premium (if any) on the Bonds. In consideration of the acceptance of the Bonds by those who shall hold the same from time to time, this Indenture shall be deemed to be and shall constitute a contract between the Agency and the Owners from time to time of the Bonds, and the covenants and agreements herein set forth to be performed on behalf of the Agency shall be for the equal and proportionate benefit, security and protection of all Owners of the Bonds without preference, priority or distinction as to security or otherwise of any of the Bonds over any of the others by reason of the number or date thereof or the time of sale, execution and delivery thereof, or otherwise for any cause whatsoever, except as expressly provided therein or herein. Section 4.02. Special Fund; Deposit of Tax Revenues. There is established a special fund to be known as the "Special Fund", which is held by the Agency. The Agency shall deposit the Tax Increment Revenues received in any Tax Increment Calculation Year, after satisfaction of (i) the requirements of Section 4.02 (and, if applicable, Section 8.02) of the Senior Indenture, (ii) and any amounts due under any superior indebtedness incurred under the provisions of Section 5.02, and (iii) any amounts due under the Financial Guaranty Agreement, the 2006 Financial Guaranty Agreement and any other Qualified Reserve Account Credit Instrument (as such terms are defined in the Senior Indenture), in each case applicable to such Tax Increment Calculation Year, in the Special Fund promptly upon receipt thereof by the Agency, until such time (if any) during any Tax Increment Calculation Year as the amounts on deposit in the Special Fund equal the aggregate amounts required to be transferred pursuant to Section 4.03 of this Indenture in the Bond Year that commences in such Tax Increment Calculation Year; and (except as may be otherwise provided in the Senior Indenture, in the instruments providing for any superior indebtedness incurred under Section 5.02 or in any Parity Debt Instruments) any Tax Increment Revenues received during any such Tax Increment Calculation Year in excess of such amounts shall be released from the pledge and lien hereunder and may be used for any lawful purposes of the Agency. The purpose and intent of the preceding sentence is that Tax Increment Revenues collected during any twelve month period commencing on any August 2 will be used (a) first, to satisfy all requirements of the Senior Obligations and any superior indebtedness incurred pursuant to Section 5.02 applicable to the Tax Increment Calculation Year that commences on such August 2; (b) second, to make deposits to the Special Fund as necessary to pay debt service on the Bonds on the June 15 and -30- December 15 that follow such August 2 (e.g., Tax Increment Revenues collected during the period from August 2, 2007 to August 1, 2008, after setting aside funds necessary to satisfy Senior Obligations due and payable during such period, will be set aside in the Special Tax Fund to pay debt service due on the Bonds on June 15, 2008 and on December 15, 2008); (c) third, if necessary, to bring the amount on deposit in the Reserve Account up to the then amount of the Reserve Requirement and the Reserve Requirement - Parity Debt (if any Parity Debt has been issued), or to reimburse draws on any Qualified Reserve Account Credit Instrument, if applicable; (d) fourth, if applicable, as necessary to satisfy the requirements of Section 5.15, for deposit to an escrow account as described in Section 5.15; and (e) fifth, any remaining Tax Increment Revenues collected during such period to be free of the pledge and lien of this Indenture and used for any lawful purpose of the Agency. Prior to the payment in full of the principal of and interest and redemption premium (if any) on the Bonds and the payment in full of all other amounts payable hereunder and under any Parity Debt Instruments, the Agency shall not have any beneficial right or interest in the moneys on deposit in the Special Fund, except only as provided in this Indenture and in any Parity Debt Instruments, and such moneys shall be used and applied as set forth herein and in any Parity Debt Instruments. Section 4.03. Debt Service Fund; Transfer of Amounts to Trustee. There is hereby established a special trust fund to be known as the "Debt Service Fund", which shall be held by the Trustee hereunder in trust. The Agency shall withdraw from the Special Fund and transfer to the Trustee amounts required to meet the Agency's obligations under this Section 4.03. Moneys so transferred by the Agency to the Trustee shall be in the following amounts at the following times, for deposit by the Trustee in the following respective special accounts within the Debt Service Fund, which accounts are hereby established with the Trustee, in the following order of priority: (a) Interest Account. On each date on which interest on the Bonds becomes due and payable, the Agency shall withdraw from the Special Fund and transfer to the Trustee for deposit in the Interest Account an amount which, when added to the amount then on deposit in the Interest Account, will be equal to the aggregate amount of the interest becoming due and payable on the Outstanding Bonds on such date. All moneys in the Interest Account shall be used and withdrawn by the Trustee solely for the purpose of paying the interest on the Bonds as it shall become due and payable (including accrued interest on any Bonds purchased or redeemed prior to maturity pursuant to this Indenture). (b) Principal Account. On each date on which principal of the Bonds becomes due and payable at maturity, the Agency shall withdraw from the Special Fund and transfer to the Trustee for deposit in the Principal Account an amount which, when added to the amount then on deposit in the Principal Account, will be equal to the amount of principal coming due and payable on such date on the Outstanding Bonds. All moneys in the Principal Account shall be used and withdrawn by the Trustee solely for the purpose of paying the principal of the Bonds upon the maturity thereof. (c) Sinking Account. On each date on which any Outstanding Term Bonds become subject to mandatory Sinking Account redemption, the Agency shall withdraw -31- from the Special Fund and transfer to the Trustee for deposit in the Sinking Account an amount which, when added to the amount then contained in the Sinking Account, will be equal to the aggregate principal amount of the Term Bonds subject to mandatory Sinking Account redemption on such date. All moneys on deposit in the Sinking Account shall be used and withdrawn by the Trustee for the sole purpose of paying the principal of the Term Bonds as it shall become due and payable upon the mandatory Sinking Account redemption thereof. (d) Reserve Account. In the event that the amount on deposit in the Reserve Account at any time becomes less than the Reserve Requirement plus, if any Parity Debt has been issued, the Reserve Requirement Parity Debt, the Trustee (to the extent known to it) shall promptly notify the Agency of such fact. Promptly upon receipt of any such notice, the Agency shall transfer to the Trustee from the Special Fund an amount sufficient to maintain the Reserve Requirement plus, if any Parity Debt has been issued, the Reserve Requirement Parity Debt, on deposit in the Reserve Account. Amounts in the Reserve Account shall be used and withdrawn by the Trustee for the purpose of making transfers to the Interest Account, the Principal Account and the Sinking Account, in such order of priority, on any date which the principal of or interest on the Bonds becomes due and payable hereunder, in the event of any deficiency at any time in any of such accounts, or at any time for the retirement of all the Bonds then Outstanding. So long as no Event of Default shall have occurred and be continuing, any amount in the Reserve Account in excess of the Reserve Requirement plus, if any Parity Debt has been issued, the Reserve Requirement Parity Debt, preceding each Interest Payment Date shall be withdrawn from the Reserve Account by the Trustee and deposited in the Interest Account on or before the Interest Payment Date. The Agency shall have the right at any time to release any funds from the Reserve Account, in whole or in part, by tendering to the Trustee: (i) a Qualified Reserve Account Credit Instrument, and (ii) an opinion of Bond Counsel stating that neither the release of such funds nor the acceptance of such Qualified Reserve Account Credit Instrument will cause interest on the Bonds to become includable in gross income for purposes of federal income taxation. Upon tender of such items to the Trustee, and upon delivery by the Agency to the Trustee of written calculation of the amount permitted to be released from the Reserve Account (upon which calculation the Trustee may conclusively rely), the Trustee shall transfer such funds from the Reserve Account to the Agency free and clear of the lien of this Indenture. The Trustee shall comply with all documentation relating to a Qualified Reserve Account Credit Instrument as shall be required to maintain such Qualified Reserve Account Credit Instrument in full force and effect and as shall be required to receive payments thereunder in the event and to the extent required to make any payment when and as required under this subsection (d). At least fifteen (15) days prior to the expiration of any Qualified Reserve Account Credit Instrument, the Agency shall be obligated either (i) to replace such Qualified Reserve Account Credit Instrument with a new Qualified Reserve Account Credit Instrument, or (ii) to deposit or cause to be deposited with the Trustee an amount of funds such that the amount on deposit in the Reserve Account is equal to the Reserve Requirement plus, if any Parity Debt has been issued, the Reserve Requirement Parity Debt, (without taking into account such expiring Qualified Reserve Fund Credit -32- Instrument). In the event that the Agency shall fail to take action as specified in clause (i) or (ii) of the preceding sentence, the Trustee shall, prior to the expiration thereof, draw upon the Qualified Reserve Account Credit Instrument in full and deposit the proceeds of such draw in the Reserve Account. In the event that the Reserve Requirement and/or, if Parity Debt has been issued, the Reserve Requirement - Parity Debt, shall at any time be maintained in the Reserve Account in the form of a combination of cash and a Qualified Reserve Account Credit Instrument, the Trustee shall apply the amount of such cash to make any payment required to be made from the Reserve Account before the Trustee shall draw any moneys under such Qualified Reserve Account Credit Instrument for such purpose. In the event that the Trustee shall at any time draw funds under a Qualified Reserve Account Credit Instrument to make any payment then required to be made from the Reserve Account, the Tax Revenues thereafter received by the Trustee, to the extent remaining after making the other deposits (if any) then required to be made pursuant to Section 4.03(a), (b) and (c), shall be used to reinstate the Qualified Reserve Account Credit Instrument. If there are more than one Qualified Reserve Account Credit Instruments held in the Reserve Account, any draw or reinstatement shall be made upon them pro rata. The Reserve Account may be maintained in the form of one or more separate sub-accounts which are established for the purpose of holding the proceeds of separate issues of the Bonds in conformity with applicable provisions of the Tax Code. (e) Redemption Account. On each date on which Bonds are subject to redemption, other than mandatory Sinking Account redemption of Term Bonds, the Agency shall withdraw from the Special Fund and transfer to the Trustee for deposit in the Redemption Account an amount required to pay the principal of and premium, if any, on the Bonds to be so redeemed on such date taking into account any funds then on deposit in the Redemption Account available for such purpose. All moneys in the Redemption Account shall be used and withdrawn by the Trustee solely for the purpose of paying the principal of and premium, if any, on the Bonds upon the redemption thereof, on the date set for such redemption, other than mandatory Sinking Account redemption of Term Bonds. Section 4.04. Investment By Trustee of Moneys in Funds. Moneys in the Debt Service Fund, the Interest Account, the Principal Account, the Sinking Account, the Reserve Account, the Redemption Account, the Project Fund and the Costs of Issuance Fund shall be invested by the Trustee in Permitted Investments specified in the Request of the Agency delivered to the Trustee at least two (2) Business Days in advance of the making of such investments; provided, however, that in the absence of any such direction from the Agency, the Trustee shall invest any such moneys solely in Permitted Investments described in clause (d) of the definition thereof. Moneys in the Special Fund shall be invested by the Agency in any obligations in which the Agency is legally authorized to invest funds within its control. Obligations purchased as an investment of moneys in any fund shall be deemed to be part of such fund or account. Whenever in this Indenture any moneys are required to be transferred by the Agency to the Trustee, such transfer may be accomplished by transferring a -33- like amount of Permitted Investments. All interest or gain derived from the investment of amounts in any of the funds or accounts held by the Trustee hereunder shall be retained in the respective fund or account from which such investment was made; provided, however, that (i) all interest or gain from the investment of amounts in the Reserve Account shall be deposited by the Trustee in the Interest Account to the extent not required to cause the balance in the Reserve Account to equal the Reserve Requirement, and (ii) so long as no Event of Default shall have occurred and be continuing, all interest or gain on investments of amounts in the Special Fund shall be released from the pledge hereof and used by the Agency for any lawful purposes. For purposes of acquiring any investments hereunder, the Trustee may commingle funds held by it hereunder upon receipt by the Trustee of the Request of the Agency. The Trustee may act as principal or agent in the acquisition or disposition of any investment and may impose its customary charges therefor. The Trustee shall incur no liability for losses arising from any investments made pursuant to this Section. The Agency acknowledges that to the extent regulations of the Comptroller of the Currency or other applicable regulatory entity grant the Agency the right to receive brokerage confirmations of security transactions as they occur, the Agency specifically waives receipt of such confirmations to the extent permitted by law. The Trustee will furnish the Agency periodic cash transaction statements which include detail for all investment transactions made by the Trustee hereunder. The Trustee may make any investments hereunder through its own bond or investment department or trust investment department, or those of its parent or any affiliate. The Trustee or any of its affiliates may act as sponsor, advisor or manager in connection with any investments made by the Trustee hereunder. Section 4.05. Valuation and Disposition of Investments. (a) Except as otherwise provided in subsection (b) of this Section, all investments of amounts deposited in any fund or account created by or pursuant to this Indenture, or otherwise containing gross proceeds of the Bonds (within the meaning of section 148 of the Tax Code) shall be acquired, disposed of, and valued (as of the date that valuation is required by this Indenture or the Tax Code) at Fair Market Value. (b) Amounts in all funds and accounts shall be valued by the Trustee at least semi-annually fifteen days prior to each Interest Payment Date, provided as to any such valuation made by the Trustee, such valuation shall be at the market value of such investments and the Trustee may utilize computerized securities pricing services that may be available to it, including those available through its regular accounting system. (c) For purposes of computations required under the Code, investments in funds or accounts (or portions thereof) that are subject to a yield restriction under applicable provisions of the Tax Code and (unless valuation is undertaken at least annually) investments in the Reserve Account shall be valued by the Agency at their present value (within the meaning of section 148 of the Tax Code). (d) The Trustee shall have no responsibility to determine Fair Market Value or present value of any Permitted Investment, and may rely upon any determination -34- made by or on behalf of the Agency. This Section 4.05(d) shall in no way limit the Trustee's obligations under Section 6.07 hereof. -35- ARTICLE V OTHER COVENANTS OF THE AGENCY Section 5.01. Punctual Payment. The Agency shall punctually payor cause to be paid the principal of and interest on the Bonds, together with any redemption premiums thereon, in strict conformity with the terms of this Indenture, and it shall faithfully observe and perform all of the conditions, covenants and requirements of this Indenture. Section 5.02. Limitation on Superior Debt. The Agency hereby covenants that, so long as the Bonds remain unpaid, the Agency shall not issue any bonds, notes or other obligations, enter into any agreement or otherwise incur any loans, advances or indebtedness, which is in any case secured by a lien on all or any part of the Tax Increment Revenues which is superior to the lien established hereunder for the security of the Bonds, unless (a) the Agency satisfies each of the requirements of Sections 3.05(a), (b), (c) and (d) as if such loan, advance or indebtedness were to be Parity Debt; (b) there is no Event of Default as such term is defined in the Senior Indenture, that has occurred and is then continuing; and (c) the Agency provides notice of the incurrence thereof under the Continuing Disclosure Certificate within ten (10) days following the date of incurrence of such loan, advance or indebtedness, including the principal amount thereof, the maturity date thereof and the date of incurrence thereof. The Agency hereby covenants that, so long as the Bonds remain unpaid, the Agency shall not issue any bonds, notes or other obligations, enter into any agreement or otherwise incur any loans, advances or indebtedness, which is in any case secured by a lien on all or any part of the Tax Increment Revenues which is on a parity with the lien established hereunder for the security of the Bonds, excepting only Parity Debt. Nothing herein is intended or shall be construed in any way to prohibit or impose any limitations upon the issuance by the Agency of loans, bonds, notes, advances or other indebtedness which are unsecured or which are secured by a junior lien on the Tax Increment Revenues, except as otherwise provided in Section 3.06. Section 5.03. Payment of Claims. The Agency will pay and discharge, or cause to be paid and discharged, any and all lawful claims for labor, materials or supplies which, if unpaid, might become a lien or charge upon the properties owned by the Agency or upon the Tax Increment Revenues or any part thereof, or upon any funds in the hands of the Trustee, or which might impair the security of the Bonds. Nothing herein contained shall require the Agency to make any such payment so long as the Agency in good faith shall contest the validity of said claims. Section 5.04. Books and Accounts. The Agency will keep, or cause to be kept, proper books of record and accounts, separate from all other records and accounts of the Agency and the City, in which complete and correct entries shall be made of all transactions relating to the Redevelopment Project, the Tax Increment Revenues and the Special Fund. Such books of record and accounts shall at all times during business hours be subject, upon prior written request, to the reasonable inspection of the Trustee and the Owners of any Bonds then Outstanding, or their representatives authorized in writing. The Trustee shall have no duty to review such books of record and account. -36- Section 5.05. Protection of Security and Rights; Pass-Through Agreements. The Agency will preserve and protect the security of the Bonds and the rights of the Trustee and the Bond Owners. From and after the Closing Date, the Bonds shall be incontestable by the Agency. The Agency will comply with any applicable provIsions of the Pass-Through Agreements related to the subordination of any obligation to remit Tax Increment Revenues thereunder to the payment of the Bonds hereunder. The Agency will not enter into any amendment to a Pass-Through Agreement that will adversely affect its ability to meet its obligations hereunder. Section 5.06. Payments of Taxes and Other Charges. The Agency will pay and discharge, or cause to be paid and discharged, all taxes, service charges, assessments and other governmental charges which may hereafter be lawfully imposed upon the Agency or the properties then owned by the Agency in the project area created by the Redevelopment Plan, when the same shall become due. Nothing herein contained shall require the Agency to make any such payment so long as the Agency in good faith shall contest the validity of said taxes, assessments or charges. The Agency will duly observe and conform with all valid requirements of any governmental authority relative to the Redevelopment Project or any part thereof. Section 5.07. Extension of Payment. The Agency will not, directly or indirectly, extend or consent to the extension of the time for the payment of any Bond or claim for interest on any of the Bonds and will not, directly or indirectly, be a party to or approve any such arrangement by purchasing or funding the Bonds or claims for interest in any other manner. In case the maturity of any such Bond or claim for interest shall be extended or funded, whether or not with the consent of the Agency, such Bond or claim for interest so extended or funded shall not be entitled, in case of default hereunder, to the benefits of this Indenture, except subject to the prior payment in full of the principal of all of the Bonds then Outstanding and of all claims for interest which shall not have been so extended or funded. Section 5.08. Disposition of Property. The Agency will not participate in the disposition of any land or real property in the Project Area to anyone which will result in such property becoming exempt from taxation because of public ownership or use or otherwise (except property dedicated for public right-of-way and except property planned for public ownership or use by the Redevelopment Plan in effect on the date of this Indenture) so that such disposition shall, when taken together with other such dispositions, aggregate more than ten percent (10%) of the land area in the Redevelopment Project (calculating such ten percent against land in the Project Area owned by private parties as of the Closing Date) unless such disposition is permitted as hereinafter provided in this Section 5.08. If the Agency proposes to participate in such a disposition, it shall thereupon appoint an Independent Redevelopment Consultant to report on the effect of said proposed disposition. If the Report of the Independent Redevelopment Consultant concludes that the security of the Bonds and the rights of the Bond Owners and the Trustee hereunder will not be materially impaired by said proposed disposition, the Agency may thereafter make such disposition. If said Report concludes that such security will be materially impaired by said proposed disposition, the Agency shall disapprove said proposed disposition. -37- Section 5.09. Maintenance of Tax Increment Revenues. The Agency shall comply with all requirements of the Redevelopment Law to insure the allocation and payment to it of the Tax Increment Revenues, including without limitation the timely filing of any necessary statements of indebtedness with appropriate officials of the County and (in the case of supplemental revenues and other amounts payable by the State) appropriate officials of the State. The Agency shall not enter into any agreement with the County or any other governmental unit, or modify the Redevelopment Plan or any Pass-Through Agreement in any manner, which would have the effect of reducing the amount of Tax Increment Revenues available to the Agency under the Redevelopment Plan for payment of the Bonds as of the Closing Date, unless in the written opinion of an Independent Redevelopment Consultant filed with the Trustee such reduction will not adversely affect the interests hereunder of or the security granted hereunder to the owners of the Bonds. Section 5.10. Payment of Expenses; Indemnification. The Agency shall pay to the Trustee all compensation for all services rendered under this Indenture following the receipt of a statement therefor, including but not limited to all reasonable expenses, charges, legal and consulting fees and other disbursements and those of its attorneys, agents and employees, incurred in and about the performance of its powers and duties hereunder and thereunder. The Agency further covenants and agrees to indemnify and save the Trustee and its officers, directors, agents and employees, harmless against any losses, expenses and liabilities which it may incur arising out of or in the exercise and performance of its powers and duties hereunder and under the Indenture, including the costs and expenses of defending against any claim of liability, but excluding any and all losses, expenses and liabilities which are due to the negligence or intentional misconduct of the Trustee, its officers, directors, agents or employees. The obligations of the Agency under this Section shall survive the resignation or removal of the Trustee under this Indenture and payment of the Bonds and the discharge of this Indenture. Section 5.11. Tax Covenants Relating to 2006 Bonds. (a) Federal Guarantee Prohibition. The Agency shall not take any action or permit or suffer any action to be taken if the result of the same would be to cause the 2006 Bonds to be "federally guaranteed" within the meaning of section 149(b) of the Tax Code. (b) No Arbitrage. The Agency shall not take, or permit or suffer to be taken by the Trustee or otherwise, any action with respect to the 2006 Bond proceeds which, if such action had been reasonably expected to have been taken, or had been deliberately and intentionally taken, on the Closing Date, would have caused the 2006 Bonds to be "arbitrage bonds" within the meaning of section 148 of the Tax Code. (c) Private Activity Bond Limitation. The Agency shall assure that the proceeds of the 2006 Bonds are not so used as to cause the 2006 Bonds to satisfy the private business tests of section 141(b) of the Tax Code or the private loan financing test of section 141(c) of the Tax Code. (d) Rebate Requirement. The Agency shall take any and all actions necessary to assure compliance with section 148(f) of the Tax Code, relating to the rebate of excess investment -38- earnings, if any, to the federal government, to the extent that such section is applicable to the 2006 Bonds. (e) Maintenance of Tax-Exemption. The Agency shall take all actions necessary to assure the exclusion of interest on the 2006 Bonds from the gross income of the Owners of the 2006 Bonds to the same extent as such interest is permitted to be excluded from gross income under the Tax Code as in effect on the date of issuance of the 2006 Bonds. (f) Compliance With Tax Covenants for 2006 Series A Bonds. The Agency agrees to comply with the provisions of Section 10.10 of the Senior Indenture. Section 5.12. Continuing Disclosure. The Agency hereby covenants and agrees that it will comply with and carry out all of the provisions of the Continuing Disclosure Certificate. Notwithstanding any other provision of this Indenture, failure of the Agency to comply with the Continuing Disclosure Certificate shall not be considered an Event of Default; however, the Trustee, at the written request of any Participating Underwriter or the holders of at least 25% aggregate principal amount of Outstanding 2006 Bonds, shall (but only to the extent it has been indemnified to its satisfaction from any cost, claim, liability or expense, including, without limitation fees and expenses of its attorneys) or any 2006 Bondholder may, take such actions as may be necessary and appropriate to compel performance, including seeking mandate or specific performance by court order. Section 5.13. Further Assurances. The Agency will adopt, make, execute and deliver any and all such further resolutions, instruments and assurances as may be reasonably necessary or proper to carry out the intention or to facilitate the performance of this Indenture, and for the better assuring and confirming unto the Owners the rights and benefits provided in this Indenture. Section 5.14. No Additional Senior Bonds; Amendments to Senior Indenture. The Agency shall not issue any Parity Debt, after the issuance of the 2006 Bonds, under and as such terms are defined in the Senior Indenture, other than Refunding Debt (as defined in the Senior Indenture), unless (a) the Agency satisfies each of the requirements of Section 3.05(a), (b), (c) and (d) as if such Parity Debt (as defined in the Senior Indenture) was to be Parity Debt as defined herein; (b) the Parity Debt (as defined in the Senior Indenture) satisfies all applicable requirements of the Senior Indenture; and (c) the Agency provides notice of the incurrence thereof under the Continuing Disclosure Certificate within ten (10) days following the date of incurrence thereof, including the principal amount thereof, the maturity date thereof and the date of issuance or incurrence thereof. The Agency shall not amend the Senior Indenture in any manner which materially adversely affects the interests of the owners of the Bonds. Section 5.15. Annual Review of Tax Revenues. The Agency shall annually engage an Independent Redevelopment Consultant to calculate the total amount of Tax Increment Revenues remaining available to be received by the Agency under the Plan Limitations, as well as future cumulative annual debt service requirements for the Senior Obligations and for the Bonds. If any such calculation determines that the Tax Increment Revenues remaining available to the Agency under the Plan Limitations after deductions for all amounts to be paid to satisfy all obligations owing on the Senior Obligations (including the requirements of Section 5.12 of the Senior Indenture), will equal one hundred ten percent (110%) or less of the then -39- unpaid principal of the Bonds, the Agency shall deposit in escrow all Tax Increment Revenues thereafter received by the Agency not needed for purposes of Section 5.12 of the Senior Indenture to be used for future debt service on, or to redeem or defease the Bonds. -40- ARTICLE VI THE TRUSTEE Section 6.01. Duties, Immunities and Liabilities of Trustee. (a) The Trustee shall, prior to the occurrence of an Event of Default, and after the curing or waiver of all Events of Default which may have occurred, perform such duties and only such duties as are specifically set forth in this Indenture and no implied covenants shall be read into this Indenture against the Trustee. The Trustee shall, during the existence of any Event of Default (which has not been cured or waived), exercise such of the rights and powers vested in it by this Indenture, and use the same degree of care and skill in their exercise, as a prudent person would exercise or use in the conduct of such person's own affairs. (b) The Agency may remove the Trustee at any time, and shall remove the Trustee (i) if at any time requested to do so by an instrument or concurrent instruments in writing signed by the Owners of not less than sixty percent (60%) in aggregate principal amount of the Bonds then Outstanding (or their attorneys duly authorized in writing), or (ii) if at any time the Trustee shall cease to be eligible in accordance with subsection (e) of this Section, or shall become incapable of acting, or shall be adjudged a bankrupt or insolvent, or a receiver of the Trustee or its property shall be appointed, or any public officer shall take control or charge of the Trustee or of its property or affairs for the purpose of rehabilitation, conservation or liquidation. In each case such removal shall be accomplished by the giving of 30 days written notice of such removal by the Agency to the Trustee, whereupon the Agency shall appoint a successor Trustee by an instrument in writing. (c) The Trustee may at any time resign by giving at least 60 days prior written notice of such resignation to the Agency and by giving the Owners notice of such resignation by first class mail, postage prepaid, at their respective addresses shown on the Registration Books. Upon receiving such notice of resignation, the Agency shall promptly appoint a successor Trustee by an instrument in writing. (d) Any removal or resignation of the Trustee and appointment of a successor Trustee shall become effective only upon acceptance of appointment by the successor Trustee. If no successor Trustee shall have been appointed and have accepted appointment within forty-five (45) days following giving notice of removal or notice of resignation as aforesaid, the resigning Trustee or any Owner (on behalf of himself and all other Owners) may petition any court of competent jurisdiction for the appointment of a successor Trustee, and such court may thereupon, after such notice (if any) as it may deem proper, appoint such successor Trustee. Any successor Trustee appointed under this Indenture shall signify its acceptance of such appointment by executing and delivering to the Agency and to its predecessor Trustee a written acceptance thereof, and to the predecessor Trustee an instrument indemnifying the predecessor Trustee for any costs or claims arising during the time the successor Trustee serves as Trustee hereunder, and after payment by the Agency of all unpaid fees and expenses of the predecessor Trustee, such successor Trustee, without any further act, deed or conveyance, shall become vested with all the moneys, estates, properties, rights, powers, trusts, duties and obligations of such predecessor Trustee, with like effect as if originally named Trustee herein; -41- but, nevertheless, upon the receipt by the predecessor Trustee of the Request of the Agency or the request of the successor Trustee, such predecessor Trustee shall execute and deliver any and all instruments of conveyance or further assurance and do such other things as may reasonably be required for more fully and certainly vesting in and confirming to such successor Trustee all the right, title and interest of such predecessor Trustee in and to any property held by it under this Indenture and shall pay over, transfer, assign and deliver to the successor Trustee any money or other property subject to the trusts and conditions herein set forth. Upon request of the successor Trustee, the Agency shall execute and deliver any and all instruments as may be reasonably required for more fully and certainly vesting in and confirming to such successor Trustee all such moneys, estates, properties, rights, powers, trusts, duties and obligations. Upon acceptance of appointment by a successor Trustee as provided in this subsection, the Agency shall mail or cause the successor Trustee to mail, by first class mail postage prepaid, a notice of the succession of such Trustee to the trusts hereunder to the Owners at the addresses shown on the Registration Books. If the Agency fails to mail such notice within fifteen (15) days after acceptance of appointment by the successor Trustee, the successor Trustee shall cause such notice to be mailed at the expense of the Agency. (e) Any Trustee appointed under the provisions of this Section in succession to the Trustee shall (i) be a trust company or bank in good standing located in or organized under the laws of the State of California, or located in or organized under the laws of any other state, (ii) be authorized to exercise trust powers, (iii) have (or in the case of a corporation or trust company, included in a bank holding company system, the related bank holding company shall have) a combined capital and surplus of at least Fifty Million Dollars ($50,000,000), and (iv) be subject to supervision or examination by federal or state authority. If such bank or trust company publishes a report of condition at least annually, pursuant to law or to the requirements of any supervising or examining authority above referred to, then for the purpose of this subsection the 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. In case at any time the Trustee shall cease to be eligible in accordance with the provisions of this subsection (e), the Trustee shall resign immediately in the manner and with the effect specified in this Section and shall assist the Agency in a transfer of the trust estate hereunder to an institution eligible to serve as Trustee hereunder, without cost to the Agency. Section 6.02. Merger or Consolidation. Any bank or trust company into which the Trustee may be merged or converted or with which either of them may be consolidated or any bank or trust company resulting from any merger, conversion or consolidation to which it shall be a party or any bank or trust company to which the Trustee may sell or transfer all or substantially all of its corporate trust business, provided such bank or trust company shall be eligible under subsection (e) of Section 6.01, shall be the successor to such Trustee without the execution or filing of any paper or any further act, anything herein to the contrary notwithstanding. Section 6.03. Liability of Trustee. (a) The recitals of facts herein and in the Bonds contained shall be taken as statements of the Agency, and the Trustee shall not assume responsibility for the correctness of the same, nor make any representations as to the validity or sufficiency of this Indenture or of the Bonds nor shall incur any responsibility in respect thereof, other than as expressly stated herein. The -42- Trustee shall, however, be responsible for its representations contained in its certificate of authentication on the Bonds. The Trustee shall not be liable in connection with the performance of its duties hereunder, except for its own negligence or willful misconduct. The Trustee shall not be liable for the acts of any agents of the Trustee selected by it with due care. The Trustee may become the Owner of any Bonds with the same rights it would have if it were not Trustee and, to the extent permitted by law, may act as depository for and permit any of its officers or directors to act as a member of, or in any other capacity with respect to, any committee formed to protect the rights of the Owners, whether or not such committee shall represent the Owners of a majority in principal amount of the Bonds then Outstanding. (b) The Trustee shall not be liable for any error of judgment made in good faith by a responsible officer. (c) The Trustee shall not be liable with respect to any action taken or omitted to be taken by it in good faith in accordance with the direction of the Owners of not less than a majority in aggregate principal amount of the Bonds at the time Outstanding relating to the time, method and place of conducting any proceeding for any remedy available to the Trustee, or exercising any trust or power conferred upon the Trustee under this Indenture. (d) The Trustee shall not be liable for any action taken by it in good faith and believed by it to be authorized or within the discretion or rights or powers conferred upon it by this Indenture, except for actions arising from the negligence or willful misconduct of the Trustee. The permissive right of the Trustee to do things enumerated hereunder shall not be construed as a mandatory duty. (e) The Trustee shall not be deemed to have knowledge of any Event of Default hereunder unless and until it shall have actual knowledge thereof, or shall have received written notice thereof at its Office. Except as otherwise expressly provided herein, the Trustee shall not be bound to ascertain or inquire as to the performance or observance of any of the terms, conditions, covenants or agreements herein or of any of the documents executed in connection with the Bonds, or as to the existence of an Event of Default hereunder or thereunder. The Trustee shall not be responsible for the validity or effectiveness of any collateral given to or held by it. (f) No provision in this Indenture shall require the Trustee to risk or expend its own funds or otherwise incur any financial liability hereunder. (g) All indemnifications and releases from liability granted herein to the Trustee shall extend to the directors, officers, employees and agents of the Trustee. (Ii) The Trustee shall have no responsibility or liability with respect to any information, statements or recital in any offering memorandum or other disclosure material prepared or distributed with respect to the issuance of the Bonds. (i) Before taking any action under Article VIII or this Article at the request of the Owners the Trustee may require that a satisfactory indemnity bond be furnished by the Owners for the reimbursement of all expenses to which it may be put and to protect it against all -43- liability, except liability which is adjudicated to have resulted from its negligence or willful misconduct in connection with any action so taken. Section 6.04. Right to Rely on Documents. The Trustee shall be protected in acting upon any notice, resolution, request, consent, order, certificate, report, opinion or other paper or document believed by it to be genuine and to have been signed or presented by the proper party or parties, in the absence of negligence or willful misconduct by the Trustee. The Trustee may consult with counsel, including, without limitation, Bond Counselor other counsel of or to the Agency, with regard to legal questions, and in the absence of negligence or willful misconduct by the Trustee the opinion of such counsel shall be full and complete authorization and protection in respect of any action taken or suffered by the Trustee hereunder in accordance therewith. The Trustee shall not be bound to recognize any person as the Owner of a Bond unless and until such Bond is submitted for inspection, if required, and his title thereto is established to the satisfaction of the Trustee. Whenever in the administration of the trusts imposed upon it by this Indenture the Trustee shall deem it necessary or desirable that a matter be proved or established prior to taking or suffering any action hereunder, such matter (unless other evidence in respect thereof be herein specifically prescribed) may be deemed to be conclusively proved and established by a Certificate of the Agency, which shall be full warrant to the Trustee for any action taken or suffered in good faith under the provisions of this Indenture in reliance upon such Certificate, but in its discretion the Trustee may (but shall have no duty to), in lieu thereof, accept other evidence of such matter or may require such additional evidence as to it may deem reasonable. The Trustee may conclusively rely on any certificate or Report of any Independent Accountant or Independent Redevelopment Consultant appointed by the Agency. Section 6.05. Preservation and Inspection of Documents. All documents received by the Trustee under the provisions of this Indenture shall be retained in its possession and shall be subject during normal business hours, and upon reasonable prior written notice, to the inspection of the Agency and any Owner, and their agents and representatives duly authorized in writing. Section 6.06. Compensation and Indemnification. The Agency shall pay to the Trustee from time to time compensation for all services rendered under this Indenture and also all expenses, charges, legal and consulting fees and other disbursements and those of its attorneys, agents and employees, incurred in and about the performance of its powers and duties under this Indenture. Upon the occurrence of an Event of Default, the Trustee shall have a first lien on the Tax Increment Revenues and all funds and accounts held by the Trustee hereunder (other than the Reserve Account) to secure the payment to the Trustee of all fees, costs and expenses, including compensation to its experts, attorneys and counsel incurred in declaring such Event of Default and in exercising the rights and remedies set forth in Article VIII. The Agency further covenants and agrees to indemnify and save the Trustee and its officers, directors, agents and employees, harmless against any loss, expense and liabilities which it may incur arising out of or in the exercise and performance of its powers and duties hereunder, including the costs and expenses of defending against any claim of liability and of -44- enforcing any remedies hereunder and under any related documents, but excluding any and all losses, expenses and liabilities which are due to the negligence or willful misconduct of the Trustee, its officers, directors, agents or employees. The obligations of the Agency under this Section 6.06 shall survive resignation or removal of the Trustee under this Indenture and payment of the Bonds and discharge of this Indenture. The Trustee shall cooperate with the Agency in connection with any litigation referred to in this paragraph, such as the sharing of information gathered in connection with any such litigation. The Trustee shall review with counsel to the Agency materials and information obtained in connection with any such litigation with the purpose of minimizing duplication of effort. Section 6.07. Accounting Records and Financial Statements. The Trustee shall at all times keep, or cause to be kept, proper books of record and account, prepared in accordance with corporate trust industry standards, in which complete and accurate entries shall be made of all transactions made by it relating to the proceeds of the Bonds and all funds and accounts established and held by the Trustee pursuant to this Indenture. Such books of record and account shall be available for inspection by the Agency at reasonable hours, during regular business hours, with reasonable prior notice and under reasonable circumstances. The Trustee shall furnish to the Agency, at least monthly, an accounting (which may be in the form of its customary statements) of all transactions relating to the proceeds of the Bonds and all funds and accounts, valued at the then market value, held by the Trustee pursuant to this Indenture. Section 6.08. Appointment of Co-Trustee or Agent. It is the purpose of this Indenture that there shall be no violation of any law of any jurisdiction (including particularly the law of the State) denying or restricting the right of national banking associations or associations to transact business as Trustee in such jurisdiction. It is recognized that in the case of litigation under this Indenture, and in particular in case of the enforcement of the rights of the Trustee on default, or in the case the Trustee deems that by reason of any present or future law of any jurisdiction it may not exercise any of the powers, rights or remedies herein granted to the Trustee or hold title to the properties, in trust, as herein granted, or take any other action which may be desirable or necessary in connection therewith, it may be necessary that the Trustee appoint an additional individual or institution as a separate co-Trustee. The following provisions of this Section 6.08 are adopted to these ends. In the event that the Trustee appoints an additional individual or institution as a separate or co-Trustee, each and every remedy, power, right, claim, demand, cause of action, immunity, estate, title, interest and lien expressed or intended by this Indenture to be exercised by or vested in or conveyed to the Trustee with respect thereto shall be exercisable by and vest in such separate or co-Trustee but only to the extent necessary to enable such separate or co- Trustee to exercise such powers, rights and remedies, and every covenant and obligation necessary to the exercise thereof by such separate or co-Trustee shall run to and be enforceable by either of them. Should any instrument in writing from the Agency be required by the separate Trustee or co-Trustee so appointed by the Trustee for more fully and certainly vesting in and confirming to it such properties, rights, powers, trusts, duties and obligations, any and all such instruments in writing shall, on request, be executed, acknowledged and delivered by the Agency. In case any separate Trustee or co-Trustee, or a successor to either, shall become incapable of acting, resign or be removed, all the estates, properties, rights, powers, trusts, -45- duties and obligations of such separate Trustee or co-Trustee, so far as permitted by law, shall vest in and be exercised by the Trustee until the appointment of a new Trustee or successor to such separate Trustee or co-Trustee. The Trustee may perform any of its obligations or duties hereunder and under any related documents through agents or attorneys and shall not be responsible for the acts of any such agents or attorneys appointed by it with due care. -46- ARTICLE VII MODIFICATION OR AMENDMENT OF THIS INDENTURE Section 7.01. Amendment With Consent of Owners. This Indenture and the rights and obligations of the Agency and of the Owners may be modified or amended at any time by a Supplemental Indenture which shall become binding upon adoption, without the consent of any Owners, to the extent permitted by law and only for anyone or more of the following purposes: (a) to add to the covenants and agreements of the Agency contained in this Indenture, other covenants and agreements thereafter to be observed, or to limit or surrender any right or power herein reserved to or conferred upon the Agency; or (b) to make such provisions for the purpose of curing any ambiguity, or of curing, correcting or supplementing any defective provision contained in this Indenture, or in any other respect whatsoever as the Agency may deem necessary or desirable, provided under any circumstances that such modifications or amendments shall not materially adversely affect the interests of the Owners in the opinion of Bond Counsel; (c) to provide for the issuance of Parity Debt, and to provide the terms and conditions under which such Parity Debt may be issued, including but not limited to the establishment of special funds and accounts relating thereto and any other provisions relating solely thereto, subject to and in accordance with the provisions of Section 3.05 hereof; or (d) to make such additions, deletions or modifications as may be necessary or desirable to assure exclusion from gross income for purposes of federal income taxation of interest on the Bonds. Except as set forth in the preceding paragraph, this Indenture and the rights and obligations of the Agency and of the Owners may be modified or amended at any time by a Supplemental Indenture which shall become binding when the written consents of the Owners of a majority in aggregate principal amount of the Bonds then Outstanding are delivered to the Trustee. No such modification or amendment shall (a) extend the maturity of or reduce the interest rate on any Bond or otherwise alter or impair the obligation of the Agency to pay the principal, interest or redemption premium (if any) at the time and place and at the rate and in the currency provided therein of any Bond without the express written consent of the Owner of such Bond, (b) reduce the percentage of Bonds required for the written consent to any such amendment or modification, or (c) without its written consent thereto, modify any of the rights or obligations of the Trustee. Section 7.02. Effect of Supplemental Indenture. From and after the time any Supplemental Indenture becomes effective pursuant to this Article VII, this Indenture shall be deemed to be modified and amended in accordance therewith, the respective rights, duties and obligations of the parties hereto or thereto and all Owners, as the case may be, shall thereafter be determined, exercised and enforced hereunder subject in all respects to such modification -47- and amendment, and all the terms and conditions of any Supplemental Indenture shall be deemed to be part of the terms and conditions of this Indenture for any and all purposes. Section 7.03. Endorsement or Replacement of Bonds After Amendment. After the effective date of any amendment or modification hereof pursuant to this Article VII, the Agency may determine that any or all of the Bonds shall bear a notation, by endorsement in form approved by the Agency, as to such amendment or modification and in that case upon demand of the Agency the Owners of such Bonds shall present such Bonds for that purpose at the Office of the Trustee and thereupon a suitable notation as to such action shall be made on such Bonds. In lieu of such notation, the Agency may determine that new Bonds shall be prepared and executed in exchange for any or all of the Bonds and in that case upon demand of the Agency the Owners of the Bonds shall present such Bonds for exchange at the Office of the Trustee without cost to such Owners. Section 7.04. Amendment by Mutual Consent. The provisions of this Article VII shall not prevent any Owner from accepting any amendment as to the particular Bond held by such Owner, provided that due notation thereof is made on such Bond. Section 7.05. Trustee's Reliance. The Trustee may rely, and shall be protected in relying, upon a Certificate of the Agency and an opinion of counsel stating that all requirements of this Indenture relating to the amendment or modification hereof have been satisfied and that such amendments or modifications do not materially adversely affect the interests of the Owners. -48- ARTICLE VIII EVENTS OF DEF AUL T AND REMEDIES OF OWNERS Section 8.01. Events of Default. The following events shall constitute Events of Default hereunder: (a) Failure to pay any installment of the principal of any Bonds when and as the same shall become due and payable, whether at maturity as therein expressed, by proceedings for redemption or otherwise. (b) Failure to pay any installment of interest on any Bonds when and as the same shall become due and payable. (c) Failure by the Agency to observe and perform any of the other covenants, agreements or conditions on its part in this Indenture or in the Bonds contained, if such failure shall have continued for a period of thirty (30) days after written notice thereof, specifying such failure and requiring the same to be remedied, shall have been given to the Agency by the Trustee; provided, however, if in the reasonable opinion of the Agency the failure stated in the notice can be corrected, but not within such sixty (60) day period, such failure shall not constitute an Event of Default if corrective action is instituted by the Agency within such thirty (30) day period and the Agency shall thereafter diligently and in good faith cure such failure in a reasonable period of time. (d) The Agency shall commence a voluntary case under Title 11 of the United States Code or any substitute or successor statute. (e) The occurrence of an Event of Default under and as defined in any Parity Debt Instrument. If an Event of Default has occurred and is continuing, the Trustee may, and if requested in writing by the Owners of a majority in aggregate principal amount of the Bonds then Outstanding the Trustee shall exercise any remedies available to the Trustee and the Owners in law or at equity. Immediately upon becoming aware of the occurrence of an Event of Default, the Trustee shall give notice of such Event of Default to the Agency by telephone confirmed in writing. With respect to any Event of Default described in clauses (a) or (b) above the Trustee shall, and with respect to any Event of Default described in clause (c) above the Trustee in its sole discretion may, also give such notice to the Owners in the same manner as provided herein for notices of redemption of the Bonds. Section 8.02. Application of Funds Upon Default. So long as an Event of Default exists, all sums received by the Trustee hereunder shall be applied by the Trustee as follows and in the following order: -49- (a) To the payment of the reasonable fees, costs and expenses of the Trustee (including reasonable fees and expenses of its counsel) incurred in and about the performance of its powers and duties under this Indenture and the payment of all reasonable fees, costs and expenses owing to the Trustee pursuant to Section 6.06 hereof; and (b) To the payment of the whole amount of interest on and principal of the Bonds then due and unpaid, with interest on overdue installments of principal and interest to the extent permitted by law at the net effective rate of interest then borne by the Outstanding Bonds; provided, however, that in the event such amounts shall be insufficient to pay the full amount of such interest and principal, then such amounts shall be applied in the following order of priority: (a) first, to the payment of all installments of interest on the Bonds then due and unpaid, on a pro rata basis in the event that the available amounts are insufficient to pay all such interest in full, (b) second, to the payment of principal of all installments of the Bonds then due and unpaid, on a pro rata basis in the event that the available amounts are insufficient to pay all such principal in full, and (c) third, to the payment of interest on overdue installments of principal and interest, on a pro rata basis in the event that the available amounts are insufficient to pay all such interest in full. Section 8.03. Power of Trustee to Control Proceedings. In the event that the Trustee, upon the happening of an Event of Default, shall have taken any action, by judicial proceedings or otherwise, pursuant to its duties hereunder, whether upon its own discretion or upon the request of the Owners of a majority in principal amount of the Bonds then Outstanding it shall have full power, in the exercise of its discretion for the best interests of the Owners of the Bonds, with respect to the continuance, discontinuance, withdrawal, compromise, settlement or other disposal of such action; provided, however, that the Trustee shall not, unless there no longer continues an Event of Default, discontinue, withdraw, compromise or settle, or otherwise dispose of any litigation pending at law or in equity, if at the time there has been filed with it a written request signed by the Owners of a majority in principal amount of the Outstanding Bonds hereunder opposing such discontinuance, withdrawal, compromise, settlement or other disposal of such litigation. Section 8.04. Limitation on Owners' Right to Sue. No Owner of any Bond issued hereunder shall have the right to institute any suit, action or proceeding at law or in equity, for any remedy under or upon this Indenture, unless (a) such Owner shall have previously given to the Trustee written notice of the occurrence of an Event of Default; (b) the Owners of a majority in aggregate principal amount of all the Bonds then Outstanding shall have made written request upon the Trustee to exercise the powers hereinbefore granted or to institute such action, suit or proceeding in its own name; (c) said Owners shall have tendered to the Trustee indemnity reasonably acceptable to the Trustee against the costs, expenses and liabilities to be incurred in compliance with such request; and (d) the Trustee shall have refused -50- or omitted to comply with such request for a period of sixty (60) days after such written request shall have been received by, and said tender of indemnity shall have been made to, the Trustee. Such notification, request, tender of indemnity and refusal or omission are hereby declared, in every case, to be conditions precedent to the exercise by any Owner of any remedy hereunder; it being understood and intended that no one or more Owners shall have any right in any manner whatever by his or their action to enforce any right under this Indenture, except in the manner herein provided, and that all proceedings at law or in equity to enforce any provision of this Indenture shall be instituted, had and maintained in the manner herein provided and for the equal benefit of all Owners of the Outstanding Bonds. The right of any Owner of any Bond to receive payment of the principal of and premium, if any, and interest on such Bond as herein provided, shall not be impaired or affected without the written consent of such Owner, notwithstanding the foregoing provisions of this Section or any other provision of this Indenture. Section 8.05. Non-waiver. Nothing in this Article VIII or in any other provision of this Indenture or in the Bonds, shall affect or impair the obligation of the Agency, which is absolute and unconditional, to pay from the Tax Increment Revenues and other amounts pledged hereunder, the principal of and interest and redemption premium (if any) on the Bonds to the respective Owners when due and payable as herein provided, or affect or impair the right of action, which is also absolute and unconditional, of the Owners or the Trustee to institute suit to enforce such payment by virtue of the contract embodied in the Bonds. A waiver of any default by any Owner or the Trustee shall not affect any subsequent default or impair any rights or remedies on the subsequent default. No delay or omission of any Owner or the Trustee to exercise any right or power accruing upon any default shall impair any such right or power or shall be construed to be a waiver of any such default or an acquiescence therein, and every power and remedy conferred upon the Owners or the Trustee by the Redevelopment Law or by this Article VIII may be enforced and exercised from time to time and as often as shall be deemed expedient by the Owners or the Trustee. If a suit, action or proceeding to enforce any right or exercise any remedy shall be abandoned or determined adversely to the Owners or the Trustee, the Agency, the Trustee and the Owners shall be restored to their former positions, rights and remedies as if such suit, action or proceeding had not been brought or taken. Section 8.06. Actions by Trustee as Attorney-in-Fact. Any suit, action or proceeding which any Owner shall have the right to bring to enforce any right or remedy hereunder may be brought by the Trustee for the equal benefit and protection of all Owners similarly situated and the Trustee is hereby appointed (and the successive respective Owners by taking and holding the Bonds shall be conclusively deemed so to have appointed it) the true and lawful attorney-in-fact of the respective Owners for the purpose of bringing any such suit, action or proceeding and to do and perform any and all acts and things for and on behalf of the respective Owners as a class or classes, as may be necessary or advisable in the opinion of the Trustee as such attorney-in-fact, subject to the provisions of Article VI. -51- Section 8.07. Remedies Not Exclusive. No remedy herein conferred upon or reserved to the Owners is intended to be exclusive of any other remedy. Subject to Section 8.08, every such remedy shall be cumulative and shall be in addition to every other remedy given hereunder or now or hereafter existing, at law or in equity or by statute or otherwise, and may be exercised without exhausting and without regard to any other remedy conferred by the Redevelopment Law or any other law. -52- ARTICLE IX MISCELLANEOUS Section 9.01. Benefits Limited to Parties. Nothing in this Indenture, expressed or implied, is intended to give to any person other than the Agency, the Trustee and the Owners, any right, remedy, claim under or by reason of this Indenture. Any covenants, stipulations, promises or agreements in this Indenture contained by and on behalf of the Agency shall be for the sole and exclusive benefit of the Trustee and the Owners. Section 9.02. Successor is Deemed Included in All References to Predecessor. Whenever in this Indenture or any Supplemental Indenture either the Agency or the Trustee is named or referred to, such reference shall be deemed to include the successors or assigns thereof, and all the covenants and agreements in this Indenture contained by or on behalf of the Agency or the Trustee shall bind and inure to the benefit of the respective successors and assigns thereof whether so expressed or not. Section 9.03. Defeasance of Bonds. If the Agency shall pay and discharge the entire indebtedness on any Bonds in anyone or more of the following ways: (a) by paying or causing to be paid the principal of and interest on such Bonds, as and when the same become due and payable; (b) by irrevocably depositing with the Trustee or an escrow agent, in trust, at or before maturity, money which, together with the available amounts then on deposit in the funds and accounts established pursuant to this Indenture, in the opinion or report of an Independent Accountant or Bond Counsel is fully sufficient to pay such Bonds, including all principal, interest and redemption premium, if any; (c) by irrevocably depositing with the Trustee or an escrow agent, in trust, Defeasance Securities in such amount as an Independent Accountant or Bond Counsel shall determine will, together with the interest to accrue thereon and available moneys then on deposit in any of the funds and accounts established pursuant to this Indenture, be fully sufficient to pay and discharge the indebtedness on such Bonds (including all principal, interest and redemption premium, if any) at or before maturity; or (d) by purchasing such Bonds prior to maturity and tendering such Bonds to the Trustee for cancellation; and if such Bonds are to be redeemed prior to the maturity thereof notice of such redemption shall have been duly given or provision satisfactory to the Trustee shall have been made for the giving of such notice, then, at the election of the Agency, and notwithstanding that any such Bonds shall not have been surrendered for payment, the pledge of the Tax Increment Revenues and other funds provided for in this Indenture and all other obligations of the Trustee and the Agency under this Indenture with respect to such Bonds shall cease and terminate, except only (a) the obligations of the Agency under Section 5.11, (b) the obligation of the Trustee to transfer and exchange Bonds hereunder, (c) the obligation of the Agency to payor cause to be paid to -53- the Owners of such Bonds, from the amounts so deposited with the Trustee, all sums due thereon, and (d) the obligations of the Agency to compensate and indemnify the Trustee pursuant to Section 6.06. Notice of such election shall be filed with the Trustee. Any funds thereafter held by the Trustee, which are not required for said purpose, shall be paid over to the Agency, to be used for any lawful purpose of the Agency. Section 9.04. Execution of Documents and Proof of Ownership by Owners. Any request, consent, declaration or other instrument which this Indenture may require or permit to be executed by any Owner may be in one or more instruments of similar tenor, and shall be executed by such Owner in person or by their attorneys appointed in writing. Except as otherwise herein expressly provided, the fact and date of the execution by any Owner or his attorney of such request, declaration or other instrument, or of such writing appointing such attorney, may be proved by the certificate of any notary public or other officer authorized to take acknowledgments of deeds to be recorded in the state in which he purports to act, that the person signing such request, declaration or other instrument or writing acknowledged to him the execution thereof, or by an affidavit of a witness of such execution, duly sworn to before such notary public or other officer. The ownership of Bonds and the amount, maturity, number and date of ownership thereof shall be proved by the Registration Books. Any request, consent, declaration or other instrument or writing of the Owner of any Bond shall bind all future Owners of such Bond in respect of anything done or suffered to be done by the Agency or the Trustee in good faith and in accordance therewith. Section 9.05. Disqualified Bonds. In determining whether the Owners of the requisite aggregate principal amount of Bonds have concurred in any demand, request, direction, consent or waiver under this Indenture, Bonds which are owned or held by or for the account of the Agency or the City (but excluding Bonds held in any employees' retirement fund) shall be disregarded and deemed not to be Outstanding for the purpose of any such determination, provided, however, that for the purpose of determining whether the Trustee shall be protected in relying on any such demand, request, direction, consent or waiver, only Bonds which the Trustee knows to be so owned or held shall be disregarded. Section 9.06. Waiver of Personal Liability. No member, officer, agent or employee of the Agency shall be individually or personally liable for the payment of the principal of or interest or any premium on the Bonds; but nothing herein contained shall relieve any such member, officer, agent or employee from the performance of any official duty provided by law. Section 9.07. Destruction of Canceled Bonds. Whenever in this Indenture provision is made for the surrender to the Agency of any Bonds which have been paid or canceled pursuant to the provisions of this Indenture, upon receipt by the Trustee of the Request of the Agency a certificate of destruction duly executed by the Trustee shall be deemed to be the equivalent of the surrender of such canceled Bonds and the Agency shall be entitled to rely upon any statement of fact contained in any certificate with respect to the destruction of any such Bonds therein referred to. -54- Section 9.08. Notices. All written notices to be given under this Indenture shall be given by first class mail or personal delivery to the party entitled thereto at its address set forth below, or at such address as the party may provide to the other party in writing from time to time. Notice shall be effective either (a) upon transmission by facsimile transmission or other form of telecommunication, (b) upon actual receipt after deposit in the United States mail, postage prepaid, or (c) in the case of personal delivery to any person, upon actual receipt. The Agency or the Trustee may, by written notice to the other parties, from time to time modify the address or number to which communications are to be given hereunder. If to the Agency: Redevelopment Agency of the City of Temecula c/o City of Temecula 43200 Business Park Drive Temecula, California 92590 Attention: Director of Finance If to the Trustee: u.s. Bank National Association 550 South Hope Street, Suite 500 Los Angeles, California 90071 Attention: Corporate Trust Division Reference: RDA City of Temecula Section 9.09. CUSIP Numbers. The Trustee and the Agency shall not be liable for any defect or inaccuracy in the CUSIP number that appears on any Bond, check, advise of payment or redemption notice and any such document may contain a statement to the effect that CUSIP numbers have been assigned by an independent service for convenience of reference and that neither the Agency nor the Trustee shall be liable for any inaccuracy in such numbers. Section 9.10. Partial Invalidity. If any Section, paragraph, sentence, clause or phrase of this Indenture shall for any reason be held illegal, invalid or unenforceable, such holding shall not affect the validity of the remaining portions of this Indenture. The Agency and the Trustee hereby declare that they would have entered into this Indenture and each and every other Section, paragraph, sentence, clause or phrase hereof and authorized the issue of the Bonds pursuant thereto irrespective of the fact that anyone or more Sections, paragraphs, sentences, clauses, or phrases of this Indenture may be held illegal, invalid or unenforceable. Section 9.11. Unclaimed Moneys. Anything contained herein to the contrary notwithstanding, any money held by the Trustee in trust for the payment and discharge of the interest or premium (if any) on or principal of the Bonds which remains unclaimed for two (2) years after the date when the payments of such interest, premium and principal have become payable, if such money was held by the Trustee at such date, or for two (2) years after the date of deposit of such money if deposited with the Trustee after the date when the interest and premium (if any) on and principal of such Bonds have become payable, shall be repaid by the Trustee to the Agency as its absolute property free from trust (subject to any applicable escheat laws of State), and the Trustee shall thereupon be released and discharged with respect thereto and the Owners shall look only to the Agency for the payment of the principal of and interest and redemption premium (if any) on of such Bonds. -55- Section 9.12. Payment on Business Days. Whenever in this Indenture any amount is required to be paid on a day which is not a Business Day, such payment shall be required to be made on the Business Day immediately following such day, provided that interest on such payment shall not accrue from and after such day. Section 9.13. Article and Section Headings and References. The headings or titles of the several Articles and Sections hereof, and any table of contents appended to copies hereof, shall be solely for convenience of reference and shall not affect the meaning, construction or effect of this Indenture. All references herein to "Articles", "Sections" and other subdivisions are to the corresponding Articles, Sections or subdivisions of this Indenture; the words "herein", "hereof", "hereby", "herermderfl and other words of similar import refer to this Indenture as a whole and not to any particular Article, Section or subdivision hereof; and words of the masculine gender shall mean and include words of the feminine and neuter genders. Section 9.14. Execution in Counterparts. This Indenture 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 9.15. Governing Law. This Indenture shall be construed and governed In accordance with the laws of the State. -56- IN WITNESS WHEREOF, the REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA has caused this Indenture to be signed in its name by its Executive Director, and U.s. BANK NATIONAL ASSOCIATION in token of its acceptance of the trusts created hereunder, has caused this Indenture to be signed in its corporate name by its officers thereunto duly authorized, all as of the day and year first above written. REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA By Executive Director u.s. BANK NATIONAL ASSOCIATION, as Trustee By Authorized Officer 20005.04:)9020 -57- EXHIBIT A FORM OF 2006 BONDS No. $ UNITED STATES OF AMERICA STATE OF CALIFORNIA COUNTY OF RIVERSIDE REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA TEMECULA REDEVELOPMENT PROJECT NO.1 2006 TAX ALLOCATION BOND, SERIES B (SUBORDINATE LIEN) RATE OF INTEREST MATURITY DATE: DATED DATE: CUSIP: % December 15,__ December __, 2006 REGISTERED OWNER: PRINCIPAL AMOUNT: DOLLARS The REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA, a public body, corporate and politic, duly organized and existing under the laws of the State of California (the "Agency"), for value received, hereby promises to pay (but only out of the Tax Increment Revenues and other moneys hereafter referred to) to the Registered Owner identified above or registered assigns (the "Registered Owner"), on the Maturity Date identified above, the Principal Amount identified above in lawful money of the United States of America; and to pay interest thereon at the Rate of Interest identified above in like lawful money from the date hereof, which date shall be the Interest Payment Date (as hereinafter defined) next preceding the date of authentication of this Bond (unless (i) this Bond is authenticated on or before an Interest Payment Date and after the first calendar day of the month in which such Interest Payment Date occurs (a "Record Date"), in which event it shall bear interest from such Interest Payment Date, (ii) this Bond is authenticated on or prior to June 1, 2007, in which event it shall bear interest from the Dated Date identified above, or (iii) interest is in default on this Bond, in which event interest on this Bond shall be payable from the date to which interest hereon has been paid in full), payable semiannually on June 15 and December 15 in each year, commencing June 15, 2007 (the "Interest Payment Dates") until payment of such Principal amount in full. The principal amount hereof is payable upon presentation hereof at the Office (as defined in the Indenture) of U.s. Bank National Association, as trustee (the "Trustee"), or at such other place as is designated by the Trustee. Interest hereon is payable by check of the Trustee mailed by first class mail, postage prepaid, on each Interest Payment Date to the Registered Owner hereof at the address of such Registered Owner as it appears on the registration books of the Trustee as of the preceding Record Date; provided that at the written request of the owner of at least $1,000,000 aggregate principal amount of Bonds which written request is on file with the Trustee as of any Record Date, interest on such Bonds shall be paid on the succeeding Interest A-I Payment Date by wire transfer to such account within the United States of America as shall be specified in such written request. This Bond is one of a duly authorized issue of bonds of the Agency designated as the "Redevelopment Agency of the City of Temecula Temecula Redevelopment Project No.1 2006 Tax Allocation Bonds, Series B (Subordinate Lien)" (the "Bonds") of an aggregate principal amount of ____ Million ____ Thousand Dollars ($____), all of like tenor and date (except for such variation, if any, as may be required to designate varying numbers, maturities, interest rates or redemption provisions) and all issued pursuant to the provisions of Part 1 of Division 24 of the California Health and Safety Code (the "Redevelopment Law") and pursuant to an Indenture of Trust, dated as of December 1, 2006, by and between the Agency and the Trustee (the "Indenture"). The Bonds have been authorized to be issued by the Agency pursuant to a resolution of the Agency adopted on November 14, 2006. The Agency may issue or incur additional obligations secured on a parity with the Bonds, but only subject to the terms of the Indenture. Reference is hereby made to the Indenture (copies of which are on file at the office of the Trustee) and all supplements thereto and to the Redevelopment Law for a description of the terms on which the Bonds are issued, the provisions with regard to the nature and extent of the Tax Increment Revenues, as that term is defined in the Indenture, and the rights thereunder of the owners of the Bonds and the rights, duties and immunities of the Trustee and the rights and obligations of the Agency thereunder, to all of the provisions of which the Registered Owner of this Bond, by acceptance hereof, assents and agrees. The Bonds have been issued by the Agency to provide monies to finance certain redevelopment activities within or of benefit to the Agency's Temecula Redevelopment Project No.1. This Bond and the interest hereon are payable from, and are secured by a charge and lien on, the Tax Increment Revenues derived by the Agency from the Redevelopment Project (as such terms are defined in the Indenture), on a parity with any Parity Debt at any time issued by the Agency under and in accordance with the Indenture. As and to the extent set forth in the Indenture, all of the Tax Increment Revenues are irrevocably pledged in accordance with the terms hereof and the provisions of the Indenture and the Redevelopment Law, to the payment of the principal of and interest and premium (if any) on the Bonds and any such Parity Debt. Notwithstanding the foregoing, certain amounts out of Tax Increment Revenues may be applied for other purposes as provided in any Parity Debt Instrument or the Indenture. Concurrently with the issuance of the Bonds, the Agency is issuing its Redevelopment Agency of the City of Temecula Temecula Redevelopment Project No.1 2006 Tax Allocation Bonds, Series A, which bonds, and certain other Senior Bonds (as defined in the Indenture), are secured by a pledge of the Tax Increment Revenues on a basis senior to that of the Bonds. The Indenture permits the issuance of additional Senior Bonds subject to compliance with the applicable requirements of the Indenture. This Bond is not a debt of the City of Temecula, the State of California, or any of its political subdivisions, and neither said City nor said State or any of its political subdivisions is liable hereon, nor in any event shall this Bond be payable out of any funds or properties other than the Tax Increment Revenues and amounts held in certain funds and accounts under the Indenture. A-2 The rights and obligations of the Agency and the owners of the Bonds may be modified or amended at any time in the manner, to the extent and upon the terms provided in the Indenture, but no such modification or amendment shall permit a change in the terms of redemption or maturity of the principal of any outstanding Bond or of any installment of interest thereon or a reduction in the principal amount or the redemption price thereof or in the rate of interest thereon without the consent of the owner of such Bond, or shall reduce the percentages of the owners required to effect any such modification or amendment. The Bonds maturing on and after December 15, _, shall be subject to redemption in whole or in part on any date, on or after December 15, __, at the option of the Agency from any available source of funds, at a redemption price equal to one hundred percent (100%) of the principal amount thereof to be redeemed together with accrued interest thereon to the redemption date, plus a redemption premium (expressed as a percentage of the principal amount of the Bonds to be redeemed) as set forth in the following table: Redemption Dates Redemption Premium December 15, __ through December 14, __ % December 15, __ through December 14, __ December 15, __ and thereafter The Bonds maturing on December 15, __ and on December 15, 2038 shall also be subject to redemption in whole, or in part by lot, at a redemption price equal to the principal amount thereof together with accrued interest thereon to the redemption date, without premium, from mandatory sinking account payments under the Indenture, on August 1 in the respective years and in the respective amounts set forth below: Bonds Maturing December 15,__ Sinking Account Redemption Date !December 15) Principal Amount To Be Redeemed A-3 Bonds Maturing December 15, 2038 Sinking Account Redemption Date !December 15) Principal Amount To Be Redeemed As provided in the Indenture, notice of redemption shall be mailed by the Trustee by first class mail not less than thirty (30) nor more than sixty (60) days prior to the redemption date to the respective owners of any Bonds designated for redemption at their addresses appearing on the Bond registration books of the Trustee, but neither failure to receive such notice nor any defect in the notice so mailed shall affect the sufficiency of the proceedings for redemption. In the case of any optional redemption of the Bonds under the Indenture, the notice of redemption shall state that the redemption is conditioned upon receipt by the Trustee of sufficient moneys to redeem the Bonds on the anticipated redemption date, and that the optional redemption shall not occur if by no later than the scheduled redemption date sufficient moneys to redeem the Bonds have not been deposited with the Trustee. In the event that the Trustee does not receive sufficient funds by the scheduled optional redemption date to so redeem the Bonds to be optionally redeemed, the Trustee shall send written notice to the Owners of the Bonds to the effect that the redemption did not occur as anticipated, and the Bonds for which notice of optional redemption was given shall remain Outstanding for all purposes of the Indenture. If this Bond is called for redemption and payment is duly provided therefor as specified in the Indenture, interest shall cease to accrue hereon from and after the date fixed for redemption. This Bond may be presented for transfer by the Registered Owner hereof, in person or by his attorney duly authorized in writing, at said Office of the Trustee or at such other place as is designated by the Trustee, but only in the manner, subject to the limitations and upon payment of the charges provided in the Indenture, and upon surrender and cancellation of this Bond. Upon registration of such transfer a new Bond or Bonds, of authorized denomination or denominations, for the same aggregate Principal amount and of the same maturity will be issued to the transferee in exchange herefor. The Indenture contains provisions permitting the Agency and the Trustee to execute supplemental indentures adding provisions to, or changing or eliminating any of the provisions of, the Indenture, subject to the limitations set forth in the Indenture. The Indenture contains provisions permitting the Agency to make provisions for the 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 outstanding under the terms of the Indenture. A-4 The Agency and the Trustee may treat the Registered Owner hereof as the absolute owner hereof for all purposes, and the Agency and the Trustee shall not be affected by any notice to the contrary. It is hereby certified that all of the things, conditions and acts required to exist, to have happened or to have been performed precedent to and in the issuance of this Bond do exist, have happened or have been performed in due and regular time, form and manner as required by the Redevelopment Law and the laws of the State of California and that the amount of this Bond, together with all other indebtedness of the Agency, does not exceed any limit prescribed by the Redevelopment Law or any laws of the State of California, and is not in excess of the amount of Bonds permitted to be issued under the Indenture. This Bond shall not be entitled to any benefit under the Indenture or become valid or obligatory for any purpose until the certificate of authentication hereon endorsed shall have been manually signed by the Trustee. Unless this Bond is presented by an authorized representative of The Depository Trust Company, a New York corporation ("DTC"), to the Agency for registration of transfer, exchange or payment, and any Bond issued is registered in the name of Cede & Co. or such other name as requested by an authorized representative of DTC (and any payment is made to Cede & Co. or to such other entity as is requested by an authorized representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co., has an interest herein. A-5 IN WITNESS WHEREOF, the Redevelopment Agency of the City of Temecula has caused this Bond to be executed in its name and on its behalf with the facsimile signature of its Chairman and its seal to be impressed hereon and attested to by the facsimile signature of its Secretary, all as of the date of issuance of the Bonds. REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA By Chairman (SEAL) Attest: Secretary CERTIFICATE OF AUTHENTICATION This is one of the Bonds described in the within-mentioned Indenture. Dated: u.s. BANK NATIONAL ASSOCIATION, as Trustee By Authorized Signatory A-6 ASSIGNMENT For value received the undersigned hereby sells, assigns and transfers unto the (Name, Address and Tax Identification or Social Security Number) within-mentioned registered Bond and hereby irrevocably constitute(s) and appoint(s) attorney, to transfer the same on the registration books of the Trustee with full power of substitution in the premises. Dated: Signatures Guaranteed: Note: Signature(s) must be guaranteed by an eligible guarantor. Note: The signatures(s) on this Assignment 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-7 CONTINUING DISCLOSURE CERTIFICATE Redevelopment Agency of the City of Temecula Temecula Redevelopment Project No.1 2006 Tax Allocation Bonds APPENDIX E FORM OF CONTINUING DISCLOSURE CERTIFICATE This CONTINUING DISCLOSURE CERTIFICATE (the "Disclosure Certificate") is executed and delivered by the Redevelopment Agency of the City ofTemecula(the "Agency") and acknowledged by 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, as trustee (the "Trustee") and in its capacity as dissemination agent (the "Dissemination Agent"), in connection with the issuance of $ aggregate principal amount of Redevelopment Agency of the City of Temecula Temecula Redevelopment Project No. 1 2006 Tax Allocation Bonds, Series A (the "Series A Bonds") and $ aggregate principal amount of Redevelopment Agency of the City of Temecula Temecula Redevelopment Project No. 1 2006 Tax AllocationBonds, Series B (Subordinate Lien) (the "Series B Bonds" and together with the Series A Bonds, the "2006 Bonds''). The Series A Bonds are being issued pursuant to a First Supplemental Indenture of Trust, dated December 1,2006 by and between the Agency and the Trustee (the "Supplemental Indenture" and together with the Indenture of Trust, dated as of April 1, 2002, by and between the Agency and the Trustee, the "Senior Indenture"), and the Series B Bonds are being issued pursuant to an Indenture of Trust, dated as of December 1, 2006 by and between the Agency and the Trustee (the "Series B Indenture" and together with the Senior Indenture, the "Indentures"). Pursuant to the Indentures, the Agency hereby covenants and agrees as follows: Section 1. PuqlOse of the Disclosure Certificate. This Disclosure Certificate is being executed and delivered by the Agency for the benefit of the owners and beneficial owners of the 2006 Bonds and in order to assist the Participating Underwriter in complying with S.E.C. Rule 15c2-12(b)(5). Section 2. Definitions. In addition to the definitions set forth in the Indentures, which apply to any capitalized term used in this Disclosure Certificate, unless otherwise defined in this Section, the following capitalized terms shall have the following meanings: "Annual Report" shall mean any Annual Report provided by the Agency pursuant to, and described in, Sections 3 and 4 of this Disclosure Certificate. "Beneficial Owners" shall mean any person who (a) has the power, directly or indirectly, to vote or consent with respect to, or to dispose of ownership of, any 2006 Bonds (including persons holding 2006 Bonds through nominees, depositories or other intermediaries), or (b) is treated as the owner of any 2006 Bonds for federal income tax purposes. "Disclosure Representa tive" shall mean the Executive Director of the Agency, or his or her designee, or such other officer or employee as the Agency shall designate in writing to the Trustee from time to time. "Dissemination Agent" shall mean U. S. Bank National Association, or any successor Dissemination Agent designated in writing by the Agency and the Trustee and which has filed with the Agency and the Trustee a written acceptance of such designation. "Listed Events" shall mean any of the events listed in Section 5(a) of this Disclosure Certificate. "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/municipal/nrmsir.htm. E-l "Official Statement" shall mean the Official Statement dated distributed in connection with the initial sale of the 2006 Bonds. , 2006, prepared and "Participating Underwriter" shall mean any of the original underwriters of the 2006 Bonds required to comply with the Rule in connection with the offering of the 2006 Bonds. "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 Certificate, there is no State Repository. Section 3. Provision of Annual Reoorts. (a) The Agency shall provide, or shall cause the Dissemination Agent to provide, each Repository an Annual Report which is consistent with the requirements of Section 4 of this Disclosure Certificate not later than eight (8) months after the end of the Agency's fiscal year (which date currently would be the first day of March, based upon the June 30 end of the Agency's fiscal year), commencing with the report for the 2005-06 Fiscal Year. (b) Not later than fifteen (15) Business Days prior to said date, the Agency shall provide the AnnualReport in a form suitable for reporting to the Repositories to the Dissemination Agent (if other than the Agency) and the Trustee. 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 4 of this Disclosure Certificate;providedthat the audited financial statements of the Agency 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 Agency's fiscal year changes, it shall give notice of such change in the same manner as for a Listed Event under Section 5(c). 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 Disclosure Certificate may be made solely by transmitting such filing to the Texas Municipal Advisory Council (the "MAC") as provided at http://www.disclosureusa.orgunlessthe United States Securities and Exchange Commission has withdrawn the interpretive advice in its letter to the MAC dated September 7, 2004. (c) If the Agency is unable to provide to the Repositories and to the Participating Underwriter an Annual Report by the date required in subsection (a), the Agency shall send a notice to the Repositories and the appropriate State Repository, if any, in substantially the form attached as Exhibit A. (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 E-2 (ii) ifthe DisseminationAgent is other than the Agency, and if the Agency has provided an Annual Report in final form to the Dissemination Agent for dissemination, file a report with the Agency and the Trustee certifying that the Annual Report has been provided to the Repositories pursuant to this Disclosure Certificate, stating the date it was provided and listing all the Repositories to which it was provided. Section 4. Content of Annual Reports. The Agency" s Annual Report shall contain or incorporate by reference the following: (a) Audited Financial Statements prepared in accordance with generally accepted accounting principles as promulgated to apply to government entities from time to time by the Governmental Accounting Standards Board. If the Agency's audited financial statements are not available by the time the Annual Report is required to be filed pursuant to Section 3( a), the Annual Report shall contain unaudited financial statements in a format similar to the financial statements contained in the final Official Statement, and the audited financial statements shall be filed in the same manner as the Annual Report when they become available. (b) Statement. The following financial information and operating data set forth in the final Official (i) Ten largest property tax payers in the Proj ect Area, including name, total value and percentage of total value substantially in the format set forth as Table 3 of the Official Statement; (ii) Annual assessed valuations, tax increment values, Tax Increment Revenues (as defined in each Indenture) and coverage ratio of Tax Increment Revenues to debt service on 2006 Bonds and all Parity Debt (as defined on the Official Statement), insubstantially the format set forth as Tables 2 and 5 of the Official Statement; and (iii) Discussion of any property tax appeals, which, either alone or in the aggregate could have a material adverse effect on Tax Increment Revenues. (c) The following information regarding the 2006 Bonds: (i) Balances in all funds and accounts maintained with respect to the 2006 Bonds; (ii) A statement of the Reserve Requirement for each Series of Bonds; and (iii) Outstanding principal amount of Series 2002 Bonds, 2006 Bonds, any Parity Bonds and Subordinate Debt (as defined in the Official Statement) outstanding. 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 Agency 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 Agency 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. E-3 Section 5. Reportinr of Significant Fvents. (a) Pursuant to the provisions of this Section 5, the Agency 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, or sale of property securing repayment of the securities; and (xi) Rating changes. (b) Whenever the Agency obtains knowledge of the occurrence of a Listed Event, the Agency shall as soon as possible determine if such event would be material under applicable federal securities law. The Dissemination Agent shall have no responsibility for such determination and shall be entitled to conclusively rely on the Agency's determination. (c) If the Agency determines that knowledge of the occurrence of a Listed Event would be material under applicable federal securities law, the Agency shall promptly file a notice of such occurrence with the National Repositories or with the Municipal Securities Rulemaking Board and each State Repository. 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 Indentures. Section 6. Termination ofReportinr Ohligation. All of the Agency.s obligations hereunder shall terminate upon the earliest to occur of (i) the legal defeasance of the 2006 Bonds, (ii) prior redemption of the 2006 Bonds, (iii) payment in full of all the 2006 Bonds or (iv) upon the delivery to the Dissemination Agent of an opinion of nationally recognized bond counsel to the effect that continuing disclosure is no longer required. If such determination occurs prior to the final maturity of the 2006 Bonds, the Agency shall give notice of such termination in the same manner as for a Listed Event under Section 5(c). Section 7. Dissemination A!!ent. The Agency may, from time to time, appoint or engage a Dissemination Agent to assist in carrying out its obligations under this Disclosure Certificate, and may E-4 discharge any such Agent, with or without appointing a successor Dissemination Agent. The Dissemination Agent may resign by providing thirty days' prior written notice to the Agency and the Trustee. The Dissemination Agent shall have no duty to prepare any information report nor shall the Dissemination Agent be responsible for filing any report not provided to it by the Agency in a timely manner and in a form suitable for filing. The Dissemination Agent shall not be responsible in any manner for the content of any notice or report prepared by the Agency pursuant to this Disclosure Certificate. The initial Dissemination Agent shall be U. S. Bank National Association. If at any time there is no designated Dissemination Agent appointed by the Agency, or if the Dissemination Agent so appointed is unwilling or unable to perform the duties of Dissemination Agent hereunder, the Agency shall be the Dissemination Agent and undertake or assume its obligations hereunder. Any company succeeding to all or substantially all of the Dissemination Agent's corporate trust business shall be the successor to the Dissemination Agent hereunder without the execution or filing of any paper or any further act, but should notify the Agency, in writing, of such occurrence. The Dissemination Agent may resign its duties hereunder at any time upon written notice to the Agency. The Dissemination Agent shall be paid compensation by the Agency for its services provided hereunder in accordance with its schedule of fees as agreed to between the Dissemination Agent and the Agency from time to time and for all expenses, legal fees and advances made or incurred by the Dissemination Agent in the performance of its duties hereunder. The Dissemination Agent shall have no duty or obligation to review any information provided to it by the Agency hereunder and shall not be deemed to be acting in any fiduciary capacity for the Agency, owners or Beneficial Owners or any other party. The Dissemination Agent may rely and shall be protected in acting or refraining from acting upon any direction from the Agency or an opinion of nationally recognized bond counsel. Section 8. Amendment Waiver. Notwithstanding any other provision of this Disclosure Certificate, the Agency may amend this Disclosure Certificate, and any provision of this Disclosure Certificate may be waived, provided that the following conditions are satisfied: (a) if the amendment or waiver relates to the provisions of Sections 3(a), 4 or 5(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 or waived, would, in the opinion of nationally recognized bond counsel, have complied with the requirements of the 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 (c) the proposed amendment or waiver either (i) is approved by owners of the 2006 Bonds in the manner provided in the Indentures, or (ii) does not, in the opinion of a nationally recognized bond counsel, materially impair the interests of the owners or beneficial owners of the 2006 Bonds. In the event of any amendment or waiver of a provision of this Disclosure Certificate, the Agency shall describe such amendment in the next Annual Report, and shall include, as applicable, a narrative explanation of the reason for the amendment or waiver and its impact on the type (or, in the case of a change of accounting principles, on the presentation) of financial information or operating data being presented. E-5 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 Agency to meet its obligations. 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 5( c). The Agency shall not amend this Disclosure Certificate in a manner which affects the rights and obligations of the Dissemination Agent without receiving the written approval of the then acting Dissemination Agent. Section 9. Additional Information. Nothing in this Disclosure Certificate shall be deemed to prevent the Agency from disseminating any other information, using the means of dissemination set forth in this Disclosure Certificate 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 Certificate. If the Agency 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 Certificate, the Agency shall have no obligation under this Disclosure Certificate to update such information or include it in any future Annual Report or notice of occurrence of a Listed Event. Section 10. Default In the event of a failure of the Agency to comply with any provision of this Disclosure Certificate 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 Agency to comply with its obligations under this Disclosure Certificate. A default under this Disclosure Certificate shall not be deemed an Event of Default under the Indentures, and the sole remedy under this Disclosure Certificate in the event of any failure of the Agency to comply with this Disclosure Certificate shall be an action to compel performance. Section 11. Duties. Immunities and Liabilities of Dissemination A!!ent. All of the immunities, indemnities and exceptions from liability in Article VI of each Indenture insofar as they relate to the Trustee shall apply to the Trustee and the Dissemination Agent in this Disclosure certificate. The Dissemination Agent shall have only duties as are specifically set forth in this Disclosure Certificate, and the Agency agrees to indemnify and save the Dissemination Agent, its officers, directors, employees and agents, harmless against any loss, expense and liabilities which it may incur arising out of or in the exercise or performance of its powers and duties hereunder, including the costs and expenses (including attorneys' fees) of defending against any claim ofliability, but excluding liabilities due to the Dissemination Agent's negligence or willful misconduct. The Dissemination Agent may rely and shall be protected in acting or refraining from acting upon any direction from the Agency or an opinion of nationally recognized bond counsel. The obligations of the Agency under this Section shall survive resignation or removal of the Dissemination Agent and payment of the 2006 Bonds. No person shall have any right to commence any action against the Trustee or Dissemination Agent seeking any remedy other than to compel specific performance of this Disclosure Certificate. E-6 Section 12. Beneficiaries This Disclosure Certificate shall inure solely to the benefit of the Agency, 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 13. Notices. Any notice or communications to or among any of the parties to this Disclosure Certificate shall be given to all of the following and may be given as follows: If to the Agency: If to the Dissemination Agent: If to the Participating Underwriter: Redevelopment Agency of the City of Ternecula 43200 Business Park Drive Temecula, California 92590 Telephone: 951/694-6430 Telecopier: 951/694-6479 Attention: Genie Roberts 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 E-7 Dated: ,2006 ACCEPTANCE OF DISSEMINATION AGENT AND TRUSTEE: The undersigned hereby accepts the designation of Dissemination Agent and agrees to comply with the duties set forth in the foregoing Continuing Disclosure Agreement as Dissemination Agent and Trustee U.S. BANK NATIONAL ASSOCIATION, as Dissemination Agent and as Trustee By: Authorized Signatory REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA By: E-8 EXHIBIT A NOTICE TO MUNICIPAL SECURITIES RULEMAKING BOARD OF FAILURE TO FILE ANNUAL REPORT Name ofIssuer: Redevelopment Agency of the City of Temecula Name of Bond Issue: Temecula Redevelopment Project No.1 2006 Tax Allocation Bonds, Series A and 2006 Tax Allocation Bonds, Series B (Subordinate Lien) Date ofIssuance: ,2006 NOTICE IS HEREBY GIVEN that the Redevelopment Agency of the City of Temecula (the "Agency"), has not provided an Annual Report with respect to the above-named Bonds as required by the Continuing Disclosure Certificate, dated as of , 2006, by the Agency, and as acknowledged and agreed to by U.S. Bank National Association, as dissemination agent. [The Agency anticipates that the Annual Report will be filed by .] Dated: REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA Authorized Officer cc: U.S. Bank National Association E-9 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.htmfor list of current NRMSIRs and SIDs IF THIS FILING RELATES TO A SINGLE BOND ISSUE: Provide name of bond issue exactly as it appears on the cover of the Official Statement (please include name of state where Issuer is located): Redevelopment Agency of the City ofTemecula Temecula Redevelopment Project No.1 2006 Tax Allocation Bonds, Series A and 2006 Tax Allocation Bonds, Series B (Subordinate Lien) (Riverside County, California) Provide nine-digit CUSIP@numbers*ifavailable, to which the information relates: IF THIS FILING RELATES TO ALL SECURITIES ISSUED BY THE ISSUER OR ALL SECURITIES OF A SPECIFIC CREDIT OR ISSUED UNDER A SINGLE INDENTURE: Issuer's Name (please include name of state where Issuer is located): _______________ Other Obligated Person's Name (if any): _______________________ (Exactly as it appears on the Official Statement Cover) Provide six-digit CUSIptJ number(s)*, if available, of Issuer: _________________ *(Contact CUSIP's@MunicipaIDisclosure Assistance Line at 212.438.6518 for assistance with obtaining the proper CUSIP@numbers.) E-lO TYPE OF FILING: D Electronic (number of pages attached)_______ D Paper (number of pages attached) ______ Ifinfonnation is also available on the Internet, give URL: __________________ WHAT TYPE OF INFORMATION ARE YOU PROVIDING? (Check all that apply) A. D Annual Financial Information and Operating Data pursuant to Rule 15c2-12 (Financial information and operating data should not be filed with the MSRB.) Fiscal Period Covered: B. D Audited Financial Statements or CAFR pursuant to Rule 15c2-12 Fiscal Period Covered: c. D 1. 2. 3. 4. 5. Notice of a Material Event pursuant to Rule 15c2-12 (Check as appropriate) D Principal and interest payment delinquencies 6. 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 Non-payment related defaults D Unscheduled draws on debt service reserves reflecting financial difficulties D Unscheduled draws on credit enhancements reflecting financial difficulties D Substitution of credit or liquidity providers, or their failure to perform 7. 8. 9. D Defeasances 10. D Release, substitution, or sale of property securing repayment of the securities D Rating changes 11. D. D Notice of Failure to Provide Annual Financial Information as Required E. D Other Secondary Market Information (SpecifY): I hereby represent that I am authorized by the issuer or obligor or its agent to distribute this information publicly: Issuer Contact: Name Employer Address Telephone Email Address Title City Fax Issuer Web Site Address State _ Zip Code Dissemination Agent Contact, if any: Name Employer Address Telephone Email Address Title City State _ Zip Code Fax Relationship to Issuer Obligor Contact, if any: Name Employer Address Telephone Email Address Title City State _ Zip Code Fax Obligor Web site Address Investor Relations Contact, if any: Name Telephone Title Email Address E-ll BOND PURCHASE AGREEMENT Redevelopment Agency of the City of Temecula Temecula Redevelopment Project No.1 2006 Tax Allocation Bonds REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA TEMECULA REDEVELOPMENT PROJECT NO.1 $ 2006 TAX ALLOCATION BONDS, SERIES A AND $ 2006 TAX ALLOCATION BONDS, SERIES B (SUBORDINATE LIEN) BOND PURCHASE AGREEMENT ,2006 Redevelopment Agency of the City of Temecula 43200 Business Park Drive Temecula, California 92590 Temecula Public Financing Authority 43200 Business Park Drive Temecula, California 92590 Ladies and Gentlemen: Stone & Youngberg LLC (hereinafterreferred to as the "Underwriter") offers to enter into this Bond Purchase Agreement (the "Bond Purchase Agreement") with the Redevelopment Agency of the City of Temecula (herein referred to as the "Agency") and the Temecula Public Financing Authority (herein referred to as the "Authority"), which will be binding upon the Agency, the Authority and the Underwriter upon the acceptance hereofby the Agency and the Authority. This offer is made subject to the acceptance hereof by the Agency and the Authority by execution of this Bond Purchase Agreement and its delivery to the Underwriter on or before 9:00 A.M., California time, on the date hereof. All capitalized terms used herein, but not defined herein, shall have the meanings ascribed thereto in the Indentures (as hereinafter defined). 1. Purchase and Sale. Upon the terms and conditions and upon the basis of the representations, warranties and agreements hereinafter set forth, the Authority agrees to purchase from the Agency, and the Agency agrees to sell and deliver to the Authority, and the Underwriter hereby agrees to purchase from the Authority, and the Authority agrees to sell and deliver to the Underwriter, all (but not less than all) of the Redevelopment Agency of the City of Temecula Temecula Redevelopment Project No. 1 2006 Tax Allocation Bonds, Series A (the "Series A Bonds"), in the aggregate principal amount of $ and its 2006 Tax Allocation Bonds, Series B (Subordinate Lien) (the "Series B Bonds," collectively, the "2006 Bonds") in the aggregate principal amount of $ . The purchase price of the Series A Bonds is $ (which is the aggregate principal amount of the Series A Bonds, less an underwriting discount of $ , less net original issue discount of$ ). The purchase price of the Series B Bonds is $ (which is the aggregate principal amount of the Series B Bonds, less an underwriting discount of $ , less net original issue discount of $ ). The 2006 Bonds will be dated , 2006 and will have the maturities, bear interest at the rates and will be subject to redemption as set forth on Exhibit A hereto. 2. Authorizing: Instruments and Law. The 2006 Bonds will be issued pursuant to the provision of the Redevelopment Law of the State of California, constituting Part 1 of Division 24 of the Health and Safety Code of the State of Cali fomi a (the "Redevelopment Law), Resolution No. RDA , adopted by the lEMRDA BPAk.wpdJMC/ Agency on , 2006 (the "Resolution"). The Series A Bonds will be issued under a First Supplemental Indenture of Trust, dated December 1, 2006 by and between the Agency and u.s. Bank National Association (the "Trustee" and the "Supplemental Indenture," respectively, and the Supplemental Indenture together with the Indenture of Trust, dated as of April 1, 2002, by and between the Agency and the Trustee, the "Senior Indenture") and the Series B Bonds will be issued under an Indenture of Trust, dated as of December 1, 2006 by and between the Agency and the Trustee (the "Series BIndenture" and together with the Senior Indenture, the "Indentures"). The proceeds of the 2006 Bonds will be used to (i) finance redevelopment activities within or of benefit to the Project Area, (ii) establish a Senior Subaccount within the Reserve Fund for the Series A Bonds all or a portion of which maybe funded by a reserve surety for the Series ABonds in satisfaction of theReserveRequirementforthe Series A Bonds, (iii) establish a Subordinate Subaccount within the Reserve Fund for the Series B Bonds in satisfaction of the Reserve Requirement for the Series B Bonds, and (iv) provide for the costs of issuing the 2006 Bonds, including the premium for the financial guaranty insurance policy and Debt Service Reserve Surety Bond for the Series A Bonds. The 2006 Bonds will be special obligations of the Agency and are payable solely from and secured by a pledge of the Tax Increment Revenues (as defined in the Indentures), on a parity with any Parity Debt (as defined in the Indentures) and a pledge of amounts in certain funds and accounts established under the Indentures, all as further described in the Indentures and Official Statement (described below). 3. Public Offerin~. The Agency hereby ratifies, confirms and approves of the use and distribution by the Underwriter prior to the date hereof of the preliminary official statement, dated , 2006, relating to the 2006 Bonds (the "Preliminary Official Statement''), which official statement the Agency has deemed final as of its date for purposes of Rule 15c2-12 promulgated under the Securities Exchange Act of 1934 (the "Rule"), except for information permitted to be omitted therefrom by the Rule. Within seven (7) business days from the date hereof (or such earlier date so as to allow the Underwriter to meet its obligations under the Rule and Rule G-32 of the Municipal Securities Rulemaking Board), the Agency shall deliver to the Underwriter a final official statement relating to the 2006 Bonds, executed on behalf of the Agency by an authorized representative of the Agency and dated the date hereof to the Underwriter, which shall include information permitted to be omitted in the Preliminary Official Statement by paragraph (b)( 1) of the Rule and with such other amendments or supplements as shall have been approved by the Agency and by the Underwriter (the "Final Official Statement"). The Preliminary Official Statement and the Final Official Statement, including the cover pages, summary statements and the appendices thereto, and all information incorporated therein by reference are hereinafter referred to collectively as the "Official Statement." The Underwriter agrees that it will not confirm the sale of any 2006 Bonds unless the confirmation of sale is accompanied or preceded by the delivery of a copy of the final Official Statement. The Agency further authorizes the Underwriter to use, in connection with the offer and sale of the 2006 Bonds, the Official Statement, that certain Continuing Disclosure Certificate, dated as of December 1, 2006 (the "Continuing Disclosure Certificate") and the Indentures (all such documents referred to in this sentence, together with the Bond Purchase Agreement are hereinafter collectively referred to as the "Financing Documents''), and all information contained herein and therein and all other documents, agreements, certificates or written statements furnished by the Agency to the Underwriter or entered into by the Agency in connection with the transactions contemplated by this BondPurchase Agreement and the 2006 Bonds. The Agency will undertake, pursuant to the Indentures and the Continuing Disclosure Certificate, to provide certain annual financial information and notices of the occurrence of certain events, if material. lEMRDA BPAk.wpdJMC/ 2 A description of this undertaking is set forth in the Preliminary Official Statement and will also be set forth in the final Official Statement. The Underwriter agrees to make a bona fide offering of all the 2006 Bonds initially at the public offering prices (or yields) set forth on the cover page of the Official Statement. Subsequent to the initial public offering, the Underwriter reserves the right to change the public offering prices (or yields) as they deem 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. 4. The Closing:. At 8:00 A.M., California time, on , 2006, or at such other time or on such earlier or later business day as shall have been mutually agreed upon by the Authority, the Agency and the Underwriter, the Agency will release the 2006 Bonds to the Authority, and the Authority will, subject to the terms and conditions hereof, cause The Depository Trust Company inNew York, New York ("DTC") to release the 2006 Bonds for the beneficial ownership of the Underwriter and will deliver to the Underwriter the other documents hereinafter mentioned at the offices of Quint & ThimmigLLP, San Francisco, California ("Bond Counsel''), or another place to be mutually agreed upon by the Agency and the Underwriter. The Underwriter will accept such delivery and pay the purchase price of the 2006 Bonds as set forth in Section 1 hereof payable in immediately available funds to the order of the Agency on the date of Closing (as hereinafter defined). This payment and delivery, together with the delivery of the aforementioned documents, is herein called the "Closing." 5. A~ency Representations Warranties and Covenants. The Agency represents, warrants and covenants to the Underwriter and the Authority that: (a) The Agency is a public body, corporate and politic, organized and existing under the Constitution (the "Constitution") and laws of the State of California (the "State''), including the Redevelopment Law, with full right, power and authority to sell, issue and deliver the 2006 Bonds to the Authority for sale to the Underwriter as provided herein, and to execute, deliver and perform its obligations under the 2006 Bonds, this Bond Purchase Agreement, the Continuing Disclosure Certificate and the Indentures. (b) This Bond Purchase Agreement, the 2006 Bonds, the Continuing Disclosure Certificate and the Indentures, when duly executed and delivered by all parties thereto, will constitute valid, legal and binding obligations of the Agency enforceable against the Agency in accordance with their respective terms, except as the enforceability thereofmay be limited by the application of equitable principles, if equitable remedies are sought, or by applicable bankruptcy, insolvency or other similar laws affecting the enforcement of creditors' rights generally. (c) The Agency has, and at the date of the Closing will have, the full legal right, power and authority to enter into this Bond Purchase Agreement, the Continuing Disclosure Certificate and the Indentures, to issue and deliver the 2006 Bonds for sale to the Authority and resale to the Underwriter as provided herein, and will have duly authorized and approved the execution and delivery of, and the performance by the Agency of its obligations contained in, the 2006 Bonds, this Bond Purchase Agreement, the Continuing Disclosure Certificate and the Indentures. (d) As of the date thereof, the Official Statement did not contain any untrue statement of a material factor 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. lEMRDA BPAk.wpdJMC/ 3 (e) Ifbetween the date hereof and the date which is 25 days after the End of the Underwriting Period (as hereinafter defined) for the 2006 Bonds, an event occurs of which the Agency has knowledge and which might or would cause the information contained in the Official Statement, as then supplemented or amended, to contain any untrue statement of a material fact or to omit to state a material fact required to be stated therein or necessary to make the information therein, in the light of the circumstances under which it was presented, not misleading, the Agency will notify the Underwriter, and, if in the opinion of the Agency, Disclosure Counsel, the Underwriter or its counsel, such event requires the preparation and publication of a supplement or amendment to the Official Statement, the Agency will forthwith prepare and furnish to the Underwriter (at the expense of the Agency) a reasonable number of copies of an amendment of or supplement to the Official Statement (in form and substance satisfactory to Bond Counsel, Disclosure Counsel and Counsel for the Underwriter) which will amend or supplement the Official Statement so that it will not contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances existing at the time the Official Statement is delivered to 2006 Bond purchasers, not misleading. For the purposes of this subsection, between the date hereof and the date which is 25 days after the End of the Underwriting Period for the 2006 Bonds, the Agency will furnish such information with respect to itself as the Underwriter may from time to time reasonably request. (f) If the information contained in the Official Statement is amended or supplemented pursuant to paragraph (e) hereof, at the time of each supplement or amendment thereto, the portions of the Official Statement so supplemented or amended (including any financial and statistical data contained therein) will not contain any untrue statement of amaterial fact or omit to state a material fact required to be stated therein or necessary to make the information therein, in the light of the circumstances under which it was presented, not misleading. (g) As used herein and for the purposes of the foregoing, the term "End of the Underwriting Period" for the 2006 Bonds shall mean the earlier of (i) the Closing Date unless the Agency shall have been notified in writing to the contrary by the Underwriter on or prior to the Closing Date, or (ii) the date on which the End of the Underwriting Period for the 2006 Bonds has occurred under the Rule; provided, however, that the Agency may treat as the End of the Underwriting Period for the 2006 Bonds the date specified as such in a notice from the Underwriter stating the date which is the End of the Underwriting Period. (h) At the time of the Closing, there shall not have been any material adverse changes in the financial condition of the Agency or any material adverse change in the valuation of taxable property in the Project Area (as described in the Official Statement) since the date of the final Official Statement. (i) As of the time of acceptance hereof and as of the time of the Closing, the Agency is not and will not be in material breach of or in material default under any applicable law or administrative regulation of the State or the United States of America, or any applicable judgment or decree or any trust agreement, loan agreement, bond, note, resolution, ordinance, agreement or other instrument to which the Agency is a party or is otherwise subject which breach would have a material adverse effect on the 2006 Bonds; and, as of such times, the execution and delivery by the Agency of this Bond Purchase Agreement, the Indentures, the Continuing Disclosure Certificate and the 2006 Bonds, and compliance by the Agency with the provisions of each of such agreements or instruments do not and will not conflict with or constitute a breach of or default under any applicable law or administrative regulation of the State or the United States of America applicable to the Agency or any applicable judgment or decree or any trust agreement, loan agreement, bond, note, resolution, ordinance, agreement or other instrument to which the Agency is a party or is otherwise subject which breach or default would have a material adverse effect on the 2006 Bonds. lEMRDA BPAk.wpdJMC/ 4 (j) Between the time of acceptance hereof and the Closing, the Agency will not, without the prior written consent of the Underwriter, issue any 2006 Bonds or securities with a pledge of or lien on the Tax Increment Revenues. (k) As of the time of acceptance hereof and the Closing, and except as described in the Official Statement, no litigation is or will be pending and served upon the Agency or, to the knowledge of the Agency, threatened in any court (i) in any way challenging any member of the Agency, or the Chairperson of the Agency, to their respective offices, or (ii) seeking to restrain or enjoin the issuance or delivery of any of the 2006 Bonds, or the collection of all the Tax Increment Revenues which are pledged to pay the principal of and interest on the 2006 Bonds, or in any contesting or affecting the validity of the 2006 Bonds, this Bond Purchase Agreement, the Indentures, the Continuing Disclosure Certificate or the collection of all of the Tax Increment Revenues, or the pledge of the Tax Increment Revenues, or contesting the powers of the Agency or its authority for the issuance of the 2006 Bonds, or (iii) contesting in any way the completeness, accuracy or fairness of the Official Statement. (I) As of the time of acceptance hereof and as of the date of the Closing, the Agency does not and will not have outstanding any indebtedness, which indebtedness is secured by a lien on the Tax Increment Revenues of the Agency superior to or on a parity with the lien of the 2006 Bonds on the Tax Increment Revenues except as otherwise described in the Official Statement. (m) The Agency will furnish such information, execute such instruments and take such other action in cooperation with the Underwriter, attheexpense of the Underwriter (except as provided in this paragraph), as it may reasonably request in order 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 of America as the Underwriter may desiguate; provided, however, that the Agency will not be required to execute a special or general consent to service of process or qualify as a foreigu corporation in connection with any such qualification in any jurisdiction. (n) At the time of acceptance hereof and as of the date of the Closing, all approvals, consents or orders required of the Agency by any govemmental authority, board, agency or commission having jurisdiction which would constitute conditions precedent to the performance by the Agency of its obligations under this Bond Purchase Agreement, the 2006 Bonds, the Indentures and the Continuing Disclosure Certificate have been obtained. (0) The Series A Bonds are secured by a first pledge of and lien on all of the Tax Increment Revenues and all of the moneys on deposit in certain funds and accounts established under the Indentures, including the Special Fund, the Debt Service Fund, the Redemption Account, the Interest Account, the Principal Account, the Sinking Account, the Redemption Account and the Reserve Account, all as provided in, and subject to the provisions of, the Indentures. The Series B Bonds are subordinate to the pledge of and lien on the Tax Increment Revenues under the Senior Indenture and under the Financial Guaranty Agreement and the 2006 Financial Guaranty Agreement (as such terms are defined in the Senior Indenture). (p) The Agency is in compliance with its statutory reporting requirements and the Agency has no "excess surplus" as defined in California Health and Safety Code Section 33334.12(g)(i). 6. Representations Warranties and Aweements of the Authority. The Authorityrepresents, warrants and agrees as follows: lEMRDA BPAk.wpdJMC/ 5 (a) The Authority is an entity duly organized and validly existing under the laws of the State of California. (b) The Authority has full legal right, power and authority to enter into this Bond Purchase Agreement, and to perform the actions contemplated hereby. (c) By all necessary official action, the Authority has duly authorized and approved the execution and delivery of, and the performance by the Authority of the obligations in connection with this Bond Purchase Agreement. (d) As of the date hereof, there is no action, suit, proceeding, inquiry or investigation, notice of which has been served on the Authority, at law or in equity before or by any court, government agency, public board or body, pending or to the best knowledge of the officer of the Authority executing this Bond Purchase Agreement, threatened against the Authority, affecting the existence of the Authority or the titles of its officers to their respective offices, or affecting or seeking to prohibit, restrain or enjoin the sale, issuance or delivery of the 2006 Bonds or the execution and delivery or adoption by the Authority of this BondPurchase Agreement, nor, to the best knowledge of the Authority, is there any basis for any such action, suit, proceeding, inquiry or investigation, wherein an unfavorable decision, ruling or finding would materially adversely affect the authorization, execution, delivery or performance by the Authority of this Bond Purchase Agreement. (e) Any certificate signed by any officer of the Authority and delivered to the Underwriter pursuant to this Bond Purchase Agreement, or any document contemplated thereby shall be deemed a representation and warranty by the Authority to the Underwriter as to the statements made therein. 7. Closinr Conditions The Underwriter has entered into this Bond Purchase Agreement in reliance upon the representations, warranties and covenants of the Authority and the Agency contained herein and the performance by the Authority and the Agency of their respective obligations hereunder, both as of the date hereof and as of the date of the Closing. The Underwriter's obligations under this Bond Purchase Agreement are and shall be subject to the following conditions: (a) At the Closing Date, the 2006 Bonds, the Bond Purchase Agreement, the Indentures, the Continuing Disclosure Certificate and the Official Statement shall have been duly authorized, executed and delivered by the respective parties thereto, in substantially the forms heretofore submitted to the Underwriter with only such changes as shall have been agreed to by the Underwriter, and said agreements 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 Bond Counsel shall deem to be necessary and appropriate; (b) The representations and warranties of the Authority and the Agency contained in this Bond Purchase Agreement, the Indentures and the Continuing Disclosure Certificate shall be true and correct in all material respects on the date hereof and on the Closing Date, as if made again on the Closing Date, and the Official Statement (as the same may be supplemented or amended with the written approval of the Underwriter) shall be true and correct in all material respects and shall not contain any untrue statement or factor omit to state any fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which such statements were made, not misleading; lEMRDA BPAk.wpdJMC/ 6 (c) At the time of the Closing, the Authority and the Agency shall perform or have performed all of their obligations required under or specified in the Financing Documents at or prior to the Closing; (d) At the time of the Closing, no default shall have occurred or be existing under the Bond Purchase Agreement, the Indentures and the Continuing Disclosure Certificate and the Agency shall not be in default in the payment of principal or interest on any of its indebtedness which default shall materially adversely impact the ability of the Agency to make its payment on the 2006 Bonds; (e) In recognition of the desire of the Agency and the Underwriter to effect a successful public offering of the 2006 Bonds, and in view of the potential adverse impact of any of the following events on sucha public offering, the Underwriter shall have the right to terminate this agreement by written notification to the Agency if at any time at or prior to the Closing; (i) the marketability of the 2006 Bonds or the market price thereof, in the reasonable opinion of the Underwriter, has been materially adversely affected by any event occurring which causes any statement contained in the Official Statement to be materially misleading or results in a failure of the Official Statement to state a material fact necessary to make the statements in the Official Statement, in the light of the circumstances under which they were made, not misleading; or (ii) the marketability of the 2006 Bonds or the market price thereof, in the opinion of the Underwriter, has been materially adversely affected by an amendment to the Constitution of the United States of America or by any legislation in or by the Congress of the United States of America or by the State, or the amendment of legislation pending as of the date of this Bond Purchase Agreement in the Congress of the United States of America, or the recommendation to Congress or endorsement for passage (by press release, other form of notice or otherwise) of legislation by the President of the United States of America, the Treasury Department of the United States of America, the Internal Revenue Service or the Chairperson or ranking minority member of the Committee on Finance of the United States Senate or the Committee on Ways and Means of the United States House of Representatives, or the proposal for consideration oflegislation by either such Committee or by any member thereof, or the presentment oflegislation for consideration as an option by either such Committee, or by the staff of the Joint Committee on Taxation of the Congress of the United States of America, or the favorable reporting for passage of legislation to either House of the Congress of the United States of America by a Committee of such House to which such legislation has been referred for consideration, or any decision of any federal or State court or any ruling or regnlation (final, temporary or proposed) or Official Statement on behalf of the United States Treasury Department, the Internal Revenue Service or other federal or State authority materially adversely affecting the federal or State tax status of the Agency, or the interest on bonds or notes or obligations of the general character of the 2006 Bonds; or (iii) any legislation, ordinance, rule or regnlationshall be introduced in, orbe enacted by any governmental body, department or agency of the State, or a decision by any court of competent jurisdiction within the State shall be rendered which materially adversely affects the market price of the 2006 Bonds; or (iv) a stop order, ruling, regnlation or Official Statement by, or on behalf of, the Securities and Exchange Commission or any other governmental agency having jurisdiction of the subject matter shall be issued or made to the effect that the issuance, offering or sale of obligations of the general character of the 2006 Bonds, or the issuance, offering or sale of the 2006 Bonds, including all underlying obligations, as contemplated hereby or by the Official Statement, is in violation or lEMRDA BPAk.wpdJMC/ 7 would be in violation of any provision of the federal securities laws, including the Securities Act of 1933, as amended and as then in effect, or that the Indentures need be qualified under the Trust Indenture Act of 1939, as amended and as then in effect; or (v) legislation shall be enacted by the Congress of the United States of America, or a decision by a court of the United States of America shall be rendered, to the effect that obligations of the general character of the 2006 Bonds, or the 2006 Bonds, are not exempt from registration under or other requirements of the Securities Act of 1933, as amended and as then in effect, or the Securities Exchange Act of 1934, as amended and as then in effect, or that the Indentures are not exempt from qualification under or other requirements of the Trust Indenture Act of 1939, as amended and as then in effect; or (vi) additional material restrictions notin 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 trade the 2006 Bonds; or (vii) a general banking moratorium shall have been established by federal or State authorities; or (viii) the United States of America has become engaged in hostilities which have resulted in a declaration of war or a national emergency or there has occurred any other outbreak 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 of America, being such as, in the reasonable opinion of the Underwriter, would affect materially and adversely the ability of the Underwriter to market the 2006 Bonds (it being agreed by the Underwriter that there is no outbreak, calamity or crisis of such character as of the date hereof); or (ix) the rating on any bonds, notes or other obligations of the Agency shall have been downgraded, suspended or withdrawn by a national rating service, which, in the Underwriter's reasonable opinion, materially adversely affects the market price of the 2006 Bonds; or (x)the commencement of any action, suit or proceeding described in paragraph 5(k) hereof, which, in the reasonable judgment of the Underwriter, materially adversely affects the market price of the 2006 Bonds. (f) At or prior to the Closing, the Underwriter shall receive with respect to the 2006 Bonds (unless the context otherwise indicates) the following documents: (i) Bond Opinion. The approving opinion of Bond Counsel to the Agency, dated the date of the Closing and substantially in the form included as Appendix D to the Official Statement, together with a letter from such counsel, dated the date of the Closing and addressed to the Underwriter, to the effect that the foregoing opinion addressed to the Agency may be relied upon to the same extent as if such opinion were addressed to them. (ii) Supplemental Opinion. A supplemental opinion or opinions of Bond Counsel addressed to the Underwriter, dated the date of the Closing to the following effect: lEMRDA BPAk.wpdJMC/ 8 (A) the 2006 Bonds are notsubject to theregistrationrequirements of the Securities Act of 1933, as amended, and the Indentures are exempt from qualification pursuant to the Trust Indenture Act of 1939, as amended; (B) this Bond Purchase Agreement has been duly executed and delivered by the Agency and the Authority and (assuming due authorization, execution and delivery by and validity against the Underwriter) is a valid and binding agreement of the Agency and the Authority, except as enforcement thereofmay be limited by bankruptcy, insolvency or other laws affecting enforcement of creditors' rights and by the application of equitable principles if equitable remedies are sought; and (C) the statements contained in the Official Statement under the captions, "INTRODUCTION," "THE 2006 BONDS," (except for information relating to the Depository Trust Company and the book-entry system for registration of the 2006 Bonds) "SECURITY FOR THE 2006 BONDS," and "T AXMATTERS," and in Appendices A and D are accurate, insofar as such statements expressly summarize certain provisions of the 2006 Bonds, the Continuing Disclosure Certificate, or the Indentures and the opinion attached as Appendix D to the Official Statement; provided that Bond Counsel need not express any opinion with respe ct to any financial or statistical information contained therein. (iii) Agency Counsel Opinion. An opinion of the City Attorney, as Counsel to the Agency, dated the date of the Closing and addressed to the Underwriter, to the following effect: (A) the Agency is a public body, corporate and politic, duly organized and validly existing under the laws of the State of California; (B) the Resolution of the Agency approving and authorizing the execution and delivery of the 2006 Bonds, the Continuing Disclosure Certificate, the Indentures and this Bond Purchase Agreement and approving the Official Statement has been duly adopted at a meeting of the governing body of the Agency, which was called and held pursuant to law and with all public notice required by law and at which a quorum was present and acting throughout and the Resolution is in full force and effect and has not been modified, amended or rescinded; (C) the information in the Official Statement with respect to the Agency and the Project Area is fair and accurate and nothing has come to the attention of such counsel which would lead it to believe that such information (excluding therefrom the financial and statistical data and forecasts included therein as to which no opinion need be expressed) contains any untrue statement of a material fact or omits to state a material fact necessary to make the statements therein, in light of the circumstances under which they were made, not misleading; (D) to the best of such counsel's knowledge, except as otherwise disclosed in the Official Statement, there is no litigation or proceeding, pending and served, or threatened, challenging the creation, organization or existence of the Agency, or the validity of the 2006 Bonds, this Bond Purchase Agreement, the Continuing Disclosure Certificate or the Indentures, or seeking to restrain or enjoin any of the transactions referred to therein or contemplated thereby, or under which a determination adverse to the Agency would have a material adverse effect upon the Agency's ability to pay principal of and interest on the lEMRDA BPAk.wpdJMC/ 9 2006 Bonds when due, or which, in any manner, questions the right of the Agency to issue the 2006 Bonds or to use the Tax Increment Revenues for repayment of the 2006 Bonds or affects in any manner the right or ability of the Agency to collect or pledge the Tax Increment Revenues or the lien priority thereof; (E) no authorization, approval, consent or other order of the State, any local agency of the State or the City, other than such authorizations, approvals and consents which have been obtained, is required for the valid authorization, execution and delivery by the Agency of the Financing Documents or the 2006 Bonds and the authorization and distribution of the Preliminary Official Statement and the Official Statement (provided that no opinion need be expressed as to any action required under State securities or "blue sky" laws in connection with the purchase or distribution of the 2006 Bonds by the Underwriter); (F) the Agency is not in breach of or default under any applicable law or administrative regnlation of the State or any applicable judgment or decree or any loan agreement, trust agreement, certificate, resolution, agreement or other instrument to which the Agency is a party, or is otherwise subject, which breach or default would materially adversely affect the Agency's ability to enter into or perform its obligations under the Financing Documents and no event has occurred and is continuing which, with the passage of time or the giving of notice, or both, would constitute a default or an event of default under any such instrument and which would materially adversely affect the Agency's ability to enter into or perform its obligations under the Financing Documents or the 2006 Bonds; (G) except as described in the Official Statement, interest on the 2006 Bonds and costs of issuance are not includable in the calculation of the limitations under the 1991 Settlement Agreement (as defined in the Official Statement); and (H) except as described in the Official Statement with respect to Pass-Through Agreements and the Owner Participation Agreement between the Agency and Advanced Cardiovascular Systems, Inc., no obligations of the Agency have a priority to or are on parity with the Agency's pledge of Tax IncrementRevenues to payment of the 2006 Bonds and the Agency's outstanding [Multifamily Housing RevenueBonds, issued April 25, 1996, and the loan from Washington Mutual Bank, F.A.] are not payable from Tax Increment Revenues. The Agency entered an Owner Participation Agreement between the Agency and International Rectifier Corporation ("International Rectifier"), on December 9, 1997 and amended on December 15, 1998. Pursuant to the agreement, the Agency notified InternationalRectifier on April 23, 2002, that the agreement was terminated. International Rectifiernever satisfied the requirements of the agreement andno payments were ever made by the Agency pursuant to the agreement. (iv) Agency Certificate. A certificate of the Agency, dated the date of the Closing, signed on behalf of the Agency by the Executive Director or other duly authorized officer of the Agency to the effect that: (A) the representations and warranties of the Agency contained herein and in the Indentures and the Continuing Disclosure Certificate are true and correct in all material respects on and as of the date of the Closing as if made on the date of the Closing; and lEMRDA BPAk.wpdJMC/ 10 (B) no event affecting the Agency has occurred since the date of the Official Statementwhich has not been disclosed therein, or in any supplement or amendment thereto, which event should be disclosed in the Official Statement in order to make the statements therein, in the light of the circumstances under which they were made, not misleading. (v)Authority Certificate. A certificate of the Authority, dated the date of the Closing, signed on behalf of the Authority by the Executive Director or other duly authorized officer of the Authority to the effect that: (A) the representations and warranties of the Authority contained herein are true and correct in all material respects on and as of the date of the Closing as if made on the date of the Closing; and (B) no event affecting the Authority has occurred since the date of the Official Statementwhich has not been disclosed therein, or in any supplement or amendment thereto, which event should be disclosed in the Official Statement in order to make the statements therein, in the light of the circumstances under which they were made, not misleading. (vi) Disclosure Counsel Opinion. An opinion, dated the date of the Closing and addressed to the Agency and to the Underwriter, of McFarlin & Anderson LLP ("Disclosure Counsel"), stating that without having undertaken to determine independently the accuracy, fairness, or completeness of the statements contained in the Official Statement, and based upon its participation in the preparation of the Official Statement no information came to the attention of the attorneys in its firm rendering legal services in connection with such representation which cause such firm to believe that, as of the date of the Official Statement or as of the date of the Closing (exceptfor any financial, statistical, economic or engineering data or forecasts, numbers, charts, tables, graphs, estimates, projections, assumptions or expression of opinion, any information about valuation, archaeological or environmental matters, the Appendices thereto or any information about debt service requirements, book-entry, The Depository Trust Company, the Municipal Bond Insurer and its Municipal Bond Insurance Policy (each as hereinafter defined) or tax exemption included therein, as to which no opinion need be expressed) contained any untrue statement of a material fact or omitted 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. (vii) Trustee's Certificate. A Certificate, dated the date of Closing addressed to the Agency and the Underwriter, to the following effect: (A) The Trustee is a national banking association duly organized and validly existing under the laws of the United States of America; and (B) The Trustee has full power, authority and legal right to comply with the terms of the Indentures and to perform its obligations stated therein. (viii) Opinion of Counsel to Trustee. An opinion of Counsel to the Trustee, to the effect that: (A) The Trustee has been duly organized and is validly existing and in good standing, with full corporate power to undertake the trust duties and obligations under the Indentures and the Continuing Disclosure Agreement. lEMRDA BPAk.wpdJMC/ 11 (B) The Trustee has duly authorized, executed and delivered the Indentures, and by all proper corporate action has authorized the acceptance of the duties and obligations of the Trustee under the Indentures and to authorize in such capacity the authentication and delivery of the 2006 Bonds. (C) Assuming due authorization, execution and delivery of the Agency, the Indentures constitute the valid, legal and binding agreements of the Trustee, enforceable in accordance with their respective terms, except as such enforcement may be limited by bankruptcy, insolvency, reorganization or other similar laws affecting the enforcement of creditors' rights in general and by general equity principles (regardless of whether such enforcement is considered in a proceeding in equity or at law). (D) Exclusive of federal or State securities laws and regnlations, to the best of such counsel's knowledge after reasonable inquiry and investigation, other than routine filings required to be made with governmental agencies in order to preserve the Trustee's authority to perform a trust business (all of which routine filings such counsel believes, after reasonable inquiry and investigation, to have been made), no consent, approval, authorization orother action by any governmental orregnlatory authority havingjurisdiction overthe Trustee is or will be required for the authentication by the Trustee of the Indentures or the execution and delivery of the 2006 Bonds. (ix) Certain Financing Documents. An executed copy of each Indenture and the Continuing Disclosure Certificate. (x) City Resolution. A certified copy of the City Resolution adopted by the City Council and certified by the City Clerk or Assistant City Clerk of the City Council approving issuance of the 2006 Bonds. (xi) Agency Resolution. A certified copy of the Agency Resolution adopted by the Agency and certified by the Secretary or Assistant Secretary of the Agency authorizing the execution and delivery of the Indentures, this BondPurchase Agreement and the Continuing Disclosure Certificate. (xii) Authority Resolution. A certified copy of the Authority Resolution adopted by the Authority and certified by the Secretary or Assistant Secretary of the Authority authorizing the execution and delivery of the Indentures, this Bond Purchase Agreement and the Continuing Disclosure Certificate. (xiii) Form 8038-G. Evidence that the federal tax information Form 8038-G has been prepared for filing. (xiv) Letter of Representations. A certified copy of the Letter of Representations by the Agency to DTC. (xv) Official Statement. An executed copy of the Official Statement. (xvi) Preliminary Official Statement An executed certificate, dated as of the date of the Preliminary Official Statement, of the Agency in a form acceptable to the Underwriter relating to Rule l5c2-l2. lEMRDA BPAk.wpdJMC/ 12 (xvii) Rating. Evidence that Standard & Poor's Ratings Services has issued a rating of "AAA" on the Series A Bonds. (xviii) Tax Certificate. An Arbitrage Certificate relating to the 2006 Bonds in form satisfactory to Bond Counsel. (xix) Bond Insurance Policy. A policy of municipal bond insurance relating to the Series A Bonds (the "Municipal Bond Insurance Policy") issued by [ Corporation] (the "Municipal Bond Insurer"). (xx) Opinion of Counsel to the Municipal Bond Insurer. An opinion of counsel to the Municipal Bond Insurer, dated the date of the closing, addressed to the Agency and the Underwriter in a form reasonably acceptable to the Agency and the Underwriter. (xx) Certificate of Fiscal Consultant. A certificate, dated the date of the closing, addressed to the Agency and the Underwriter in a form reasonably acceptable to the Agency and the Underwriter. (xxii)Additional Documents. Such additional certificates, instruments and other documents as the Underwriter, Bond Counselor Disclosure Counsel may reasonably deem necessary to evidence the truth and accuracy as of the time of the Closing of the representations of the Agency and the due performance or satisfaction by the Agency at or prior to such time of all agreements then to be performed and all conditions then to be satisfied by the Agency. If the Agency shall be unable to satisfy the conditions contained in this Bond Purchase Agreement, or if the obligations of the Underwriter shall be terminated for any reason permitted by this Bond Purchase Agreement, this Bond Purchase Agreement shall terminate and neither the Underwriter nor the Agency shall be under further obligation hereunder, except as further set forth in Section 9 hereof. 8. Certain Covenants After the Closing: (a) The Agency will not adopt any amendment of or supplement to the Official Statement to which, after having been furnished a copy, the Underwriter shall reasonably object in writing and if any event relating to or affecting the Agency or the Project Area shall occur as a result of which it is necessary, in the opinion of 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 the Underwriter, the Agency shall cause to be forthwith prepared and furnished to the Underwriter (at the expense of the Agency) a reasonable number of copies of an amendment of or supplement to the Official Statement (in form and substance satisfactory to the Underwriter) that will amend or supplementthe Official Statement so that it will not contain an untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances existing at the time it is delivered to the purchaser, not misleading; and (b) The Agency shall not knowingly take or omit to take, as is appropriate, any action which would adversely affect the exclusion from gross income under federal tax law of the interest on the 2006 Bonds or which would cause the 2006 Bonds to become arbitrage bonds under Section 148 of the Code and the regnlations thereunder. lEMRDA BPAk.wpdJMC/ 13 9. Fxpenses Ail expenses and costs of the Agency incident to the performance of their obligations hereunder and in connection with the authorization, execution, sale and delivery of the 2006 Bonds to the Underwriter, including any printing costs, fees of the Trustee, the Dissemination Agent,rating agency fees, fees and expenses of consultants, fees and expenses of Bond Counsel, fees and expenses of Disclosure Counsel, fees and expenses of counsel to the Agency and the City, and bond insurance and surety policy premiums shall be paid from the Bond proceeds or in the event that2006 Bonds are not issuedfor any reason, shall be paid by the Agency. Ail costs and expenses of the Underwriter, including travel, "blue sky" expenses, fees and expenses assessed upon the Underwriter with respect to the 2006 Bonds by the Municipal Securities Rulemaking Board or the National Association of Securities Dealers, CUSIP@ Service Bureau charges, CDIAC fees and advertising expenses shall be paid by the Underwriter. 10. Survival of Certain Reoresentations and Obli!!ations. The respective agreements, covenants, representations, warranties and other statements of the Agency of each of its officials, partuers or officers set forth in or made pursuant to this Bond Purchase Agreement shall survive delivery of and payment for the 2006 Bonds remains outstanding under the Indentures, regardless of any investigation, or statements as to the results thereof, made by or on behalf of the Underwriter. II. Notice. Any notice or other communication to be given to the Agency under this Bond Purchase Agreement may be given by delivering the same in writing to the Agency, addressed as follows: Redevelopment Agency of the City of Temecula, 43200 Business Park Drive, Temecula, California 92590, Attention: Ms. Genie Roberts, Director of Finance. 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 Figneroa Street, Suite 1060, Los Angeles, California 90071-3338, Attention: Public Finance. 12. Fntire Agreement This Bond Purchase Agreement, when accepted by the Agency, shall constitute the entire agreement between the Agency and the Underwriter and is made solely for the benefit of the Agency and the Underwriter (including the successors or assigns of the Underwriter). No other person or entity shall acquire or have any right hereunder by virtue hereof, except as expressly provided herein. 13. Countetparts This Bond Purchase Agreement may be executed by the parties hereto in separate counterparts, each of which when so executed and delivered shall be an original, but all such counterparts shall together constitute but one and the same instrument. 14. Severabilitv. 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. 15. California Law Governs. The validity, interpretation and performance of this Bond Purchase Agreement shall be governed by the laws of the State applicable to contracts made and performed in the State. lEMRDA BPAk.wpdJMC/ 14 16. No Assignment The rights and obligations created by this Bond Purchase Agreement shall not be subject to assignment by the Underwriter or Agency without the prior written consent of the other parties hereto. STONE & YOUNGBERG LLC By Authorized Representative Accepted as of the date first stated above: REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA By Name: Shawn Nelson Title: Executive Director TEMECULA PUBLIC FINANCING AUTHORITY By Name: Shawn Nelson Title: Executive Director EXHIBIT A REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA TEMECULA REDEVELOPMENT PROJECT NO.1 2006 TAX ALLOCATION BONDS, SERIES A Maturity Date 8/1/2007 8/1/2008 8/1/2009 8/1/2010 8/1/2011 8/1/2012 8/1/2013 8/1/2014 8/1/2015 8/1/2016 8/1/2017 8/1/2018 8/1/2019 8/1/20 8/1/20 8/1/20 MATURITY SCHEDULE Amount $ Rate Yield Price % % $ A-I lEMRDA BPAk.wpdJMC/ REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA TEMECULA REDEVELOPMENT PROJECT NO.1 2006 TAX ALLOCATION BONDS, SERIES B (SUBORDINATE LIEN) MATURITY SCHEDULE Maturity Date Amount Rate Yield Price 12/15/2007 $ 12/15/2008 12/15/2009 12/15/2010 12/15/2011 12/15/2012 12/15/2013 12/15/2014 12/15/2015 12/15/2016 12/15/2017 12/15/2018 12/15/2019 12/15/20 12/15/20 12/15/20 % % $ lEMRDA BPAk.wpdJMC/ A-2 EXHIBIT B RULE 15c2-12 CERTIFICATE ,2006 Stone & Youngberg LLC 515 South Figneroa Street, Suite 1060 Los Angeles, California 90071-3338 Re: Redevelopment Agency of the City of Temecula Temecula Redevelopment Project No.1 2006 Tax Allocation Bonds, Series A and 2006 Tax Allocation Bonds. Series B (Subordinate Lien) Ladies and Gentlemen: You have been engaged by the Redevelopment Agency of the City of Temecula (the "Agency"), to act as the underwriter in connection with the sale of the Redevelopment Agency of the City ofTemecula Temecula Redevelopment Project No.1 2006 Tax AIlocation Bonds, Series A (the "Series A Bonds"), in the aggregate principal amount of $ and its 2006 Tax AIlocation Bonds, Series B (Subordinate Lien) (the "Series B Bonds," collectively, the "2006Bonds") in the aggregate principal amount of$ . For purposes of Rule 15c2-12 of the Securities and Exchange Commission ("Rule 15c2- 12"), the undersigned hereby certifies on behalf of the Agency that the Preliminary Official Statement is deemed final, in accordance with Rule 15c2-12 as of its date except for the omission of certain matters which may be omitted under Rule 15c2-12 (including interest rates, redemption prices and dates, ratings, and related information). Very truly yours, REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA By: Name: Shawn Nelson Title: Executive Director lEMRDA BPAk.wpdJMC/ B-1 RDA DEPARTMENTAL REPORT ITEM NO. 40 Approvals City Attorney Director of Finance City Manager V /112 Jfr TEMECULA REDEVELOPMENT AGENCY AGENDA REPORT TO: Executive Director/Agency Members FROM: John Meyer, Redevelopment Director DATE: November 14, 2006 SUBJECT: Redevelopment Departmental Monthly Report Attached for your information is the monthly report as of October 24, 2006 for the Redevelopment Department. First Time Homebuyers Program Funding in the amount of $100,000 is available for FY 06 -07. Residential Improvement Programs The program budget for FY 06-07 is $350,000, with $116,120 funded on 17 units. The amount available to each participant is$7500. Habitat for Humanity Council entered into a Disposition and Development Agreement (DDA) with Habitat for Humanity to develop a home-ownership project within the Pujol Neighborhood. The project located on the northwest corner of Pujol and First Streets, will consist of 5 new single-family detached homes. The houses are arranged along Pujol Street and a private lane. The preliminary grading permit has been issued. Dalton Mixed-Use II On May 28, 2005, the Council approved an Owner Participation Agreement with D'Alto Partners to build a mixed-use affordable housing project. The project will consist of 24 units over 5,000 sq. ft. of retail/commercial. The project is located on the north side of Fifth Street, west of Mercedes. Vertical construction has begun with the installation of vertical steel. Dalton Mixed-Use III On March 28, 2006, the Council approved an Owner Participation Agreement with D'Alto Partners to build a mixed-use affordable housing project. The project will consist of 22 units over 4,700 sq. ft. of retail/commercial. The project is located on the north side of Fifth Street, west of Mercedes. Temecula Education Center The City Council awarded the construction contract and approval of a soil excavation and temporary entry agreement with the Rancho California Water District for the Temecula Education Center Rough Grading on April 11, 2006. The grading process began on May 1, 2006. Public Works issued the 90-Day Notice/Letter to Agee Kading acknowledging completion of work required of the City. Facade ImprovementlNon-Conforming Sign Program The following facade improvement/sign projects are in process or have recently been completed: Palomar Hotel - Paint Exterior, New Windows and Doors The Emporium - Paint Exterior and New Front Fayade Temecula Valley Goldsmith - Design and Install Wood Sandblasted Signs State Farm Insurance - Design and Install Three Wood Signs. Old Town PromotionslMarketing Halloween In Old Town Haunted, Haunted West was held in Old Town Temecula on October 28 & 29, 2006. The weekend consisted of children friendly trick or treating Saturday and Sundayfrom 2 p.m. to 5 p.m., the Rosa's Cantina's pumpkin toss, pumpkin decorating, face painting and costume contests. Animal Friends of the Valley conducted their 7th annual pet costume contest on Saturday 1 p.m. at Sam Hicks Park. The Costume Walk Contest was held on Sunday at 3 p.m. at Butterfield Square on Front Street, as well as Dynamite Dave, dressed as that Wild West Zombie. Other upcoming events are to include the Fourth Erie Stanley Gardner Mystery Weekend on November 3, 4 and 5 in Old Town. The weekend will kick off Friday evening with "Where in the World is Erie Stanley Gardner?" and reception at the Temecula Valley Museum. The mysteries unfold at the Perry Mason Radio Studios in Old Town Temecula at the Temecula Museum and the Country Porch at 3rd and Front. Participants in the mystery contest will pick up leads throughout Old Town to uncover who did it, and if they were hot on the trail, enter the mystery contest with the hopes of winning $500 of Old Town Temecula prizes of gifts and gift certificates. The final radio episode and the mystery solved will be held at the Old Town Temecula Community Theater on Sunday, November 5 at 3 p.m. free of charge. Mystery writing workshops, editors, writing coaches and authors at the Senior Center will be offered on Saturday, November 4 at 10:00 a.m. and 1 :00 p.m. A CBS Film interview with Charles Collingwood and Erie Stanley Gardner will be shown at 3:00 p.m. The writing seminars are free of charge. Last year, the rooms for the writing workshops were filled to capacity, which nearly tripled the attendance. The Erie Stanley Gardner exhibition will be displayed at the Temecula Valley Museum from November 3, 2005 - January 7, 2006. Dickens of a Christmas will begin on November 18 with Santa Claus being pulled bya horse drawn carriage followed by strolling carolers. Santa will be at his workshop every Saturday and Sunday from 11 a.m. to 3 p.m. at the Country Porch located at Third and Front Streets. Santa Photos will be available for both children and pets alike. Musicians Workshop performed every Saturday from 12:00 p.m. to 1 :00 p.m. at the Wild Cactus. And every weekend included that Giant Elf Dynamite Dave. It will be a Dickens of a Christmas every weekend through December 17, 2006 where dozens of carolers will greet with song and fill Old Town with holiday cheer. The event will include performers such as the Vintage Singers, dressed in Victorian era holiday clothing strolling and caroling along Main Street; as well as other musical performers. Community Music Day will feature local schools and community performance groups in a full day of musical celebration to include Jazz and symphonic bands from Vail Ranch Middles School, followed byTemecula Middle School, Temecula Valley High School and Murrieta Valley High School Jazz Bands. Sponsored by ...ARROWHEAD . D.'".,.,,, '.""gm.m'.,,'"," W..'" .~ 2qJsensie'lit & !J{itzeman - ---- ,.. ~~ I \ \.Jr'l r !lor ...... , -,' t "- W;"'L ~ / '.. _( .... . \...'1 . ~ --, '\.. [ (-L [ jrL:.\ ,) r III -r!l'l;d . ''- ~ lI"-'" _.,.. .... b l~ ,T. " I" .J <0:80 ~.m. te 9:80 ~.m. (] I~ Jewn Jemecula's }(rsterrc mercantrle tf~fI ~ tM"'~fI~ q(AlfA'f"flf i \ Murder Mystery Weekend The ESG Temecula Connection: This is the fifth year for the Erle Stanley Gardner Mystery Weekend. The event was designed to honor the creator of the Perry Mason mysteries. Gardner was one of Temecula's more famous citizens. The prolific writer penned 151 books, including 82 about the fictional defense attorney Perry Mason. From his house at Rancho del Paisano in the Temecula Valley, he would dictate his books into an audograph for his seven secretaries to transcribe. The Lost Canyon Rangers Around Uncle Erle's Campfire features cowboy poets and western musicians in a musical/lyrical tribute to the man and his expeditions. Join us for an evening of Western Music, Cow- boy Poetry and Campfire Songs at the Historic Temecula Mercantile, praised for it's intimate setting and outstanding acoustics. Ken Graydon will emcee the evening with his wonderful songs and poetry. CO)]lcdll[cU)\v\VJI11lrceJI1IllCeCC1Uul<ill Ncoywce;Jnn1b)(e;Jr 33y Lj~ (Sf 5)y ,2(0)(0)(6) Er Ie Stanley Gardner Exhibit at the Temecula Valley Museum Mystery Solving Contest Mystery Writing Workshops One-Act Mystery Play Festival Classic RV Exhibit Mystery Writing Competition Around Uncle Erie's Campfire (an evening of western music & cowboy poetry) Gardner was an avid adventurer who spent several years exploring Baja California in makeshift dune buggies. THE LOST CANYON RANGERS: This band's lively interpretations of tunes made famous by Gene Autry, Roy Rogers and Audie Murphy earned the group the 2005 Rising Star Award by the Academy of Western Artists and was one of the top five finalists in the WMA for the 2005 Crescendo Award. His travels explored and charted pictographs, unexplored caves, archaeological sites, and the rugged terrain of Baja. Included in his travels was his discovery of the California gray whale migration along the Baja coastline. Campfires with songs and tales of the Old West were said to be the conclusion of many Gardner expeditions. F or more information on this event and other Temecula Valley Museum Activities call: (951) 694-6450. TJ CASEY: Cowboy poet and musician TJ Casey of Billings, Montana is a nationally recognized western, western swing singer/songwriter and cowboy poet. He has shared the stage with Ian Tyson, Merle Haggard and Dierks Bentley, and tours with the Rough Rider Band. He's produced music for the RD- TV network shows Horse Sense and The Cattle Show. Tickets: $10 available at 1-866-653-8696. ~ - ,- .., I J. I j ..11 There are three age categories: Adult, High School and MIddle School writers. An one- act mystery play category is open to all ages. Story should not exceed 1,000 words for middle school entries, 1,500 words for high school entries, and 2,500 words for adult entries. There is also an award for a I-act mystery play-open category. The Deadline is October 12, 2006. Mystery Writing Workshops & Forum Perfecting Your Craft With the "Write" Group: A 2-hour critiquing seminar Marilyn Meredith, mystery writer, instructor and judge for Writer's Digets writing competitions has been in numerous Critiquing Groups. The "Write" group with proper critiquing tools can inspire, improve and enhance your writing career. Get Your Work Critiqued!! Bring five pages of your recent work for a group critique. Saturday, November 4th, 12 Noon Temecula Theater Mercantile 42051 Main Street r I~ ]'~ :.. ..~ " c r, -~ ~. , -.::. .... r Writers Wanted: Enter the Erle Stanley Gardner Mystery Writing Contest and win cash or gift certificates. Win- ning entries are published in The Californian Newspaper. Super Sleuths Wanted: Help us solve the crime. This year's Mystery Contest asks you to solve the crime and free an innocent man in the "Court of Last Resort." Super Sleuths will be asked to use forensic sci- ence and clues to determine if a convicted man was truly innocent. Super Sleuths who solve the crime will have their names placed into an entry for a $500 Gift Pack from the Merchants of Old Town Temecu- la. Gift pack includes gift certificates and itmer- chandise. Prizes, sponsored by Rosenstein and Hitzeman, AAPLC, are awarded the top three entries in each category. Clues are unveiled Friday, Saturday and Sunday in Old Town. Sleuths must also figure out "Where in the W orId is ErIe Stanley Gardner?" Winning entries in the adult category will re- ceive: $200 for first place, $100 for second place, and $50 for third place. Winning entries in the school and one-act mystery play categories will receive $100 gift certificates for first place in both Middle and High School category, $75 gift certificates for second place and $50 gift certifi- cates for third place. Saturday, 11:30, 1:30, 2:30 and 3:30 p.m., November 4th, 2006 At the Old Town Temecula Community Theater Courtyard 42051 Main Street www.cityoftemecula.org/temecula/history/ www.oldtemecula.com/history/ http://destem.com/ displaypage.php?page=history www.tvhsi.com/parks/Temecula_Museum.htm Forensically Speaking: Ask the experts and be sure your forensics, crime scenes and reporters are written correctly. Our panel of experts lead a forum in a roundtable discussion. Saturday, November 4th, 2:30-3:45 p.m. Old Town Temecula Theater Mercantile 42051 Main Street Friday, 7:00 p.m. November 3rd, 2006 1st clue, call (951) 694-6450 for reservations to the Mystery Weekend Opening Reception at the Temecula Valley Museum. TEMECULA HISTORY & INFORMATION Entries are to include references to historical buildings, people -living or dead, and sites in the Temecula Valley. Here are some web sites to help you with your research: Sunday, 12:30, 1:30 p.m. November 5th, At the Old Town Temecula Community Theater Courtyard 42051 Main Street BOOKS & REFERENCES: The historic valley of Temecula: The early Indians of Tem- ecula (A Paisano Press librito) (Unknown Binding) Temecula : At the Crossroads of History (Hardcover) Mystery Publishing Trends & Opportunities: Rob Preece, Publisher of BooksForABuck. com and ePublishing. Saturday, November 4th, 4 p.m. Old Town Temecula Theater Mercantile 42051 Main Street Sunday, 4 p.m. Conclusion at Old Town Tem- ecula Community Theater, 42051 Main Street. See www.esgmysteryweekend.org for more information and an application or call (951) 678-1456 R.S.V.P. Recommended. Seminars are free. Call (951) 694-6412 , '" Ihe _ ~.~~\a,,'e' 8~,.:"'. ~ I Exploring [the Canyons of Baia~ Mexico 2 ~\raverSing the Great Deserts of the Southwest? Pobderrng the Court of Last Resort 2 Trekkin~ the Sbuth,Sea Islands~ China~ Japan~ Asia~ England 2 Maype...HJ's ~et Up \tis BaseCamp at the Temecula Valley Museum! JustlMaybe:.. HJ~~plo'"ring Outback with the Tear Drops & Airstreams! He Re~~sts That You Tr8\ret6ver for an Evening of Bodacious Entertainment, Thirst Quenching Drinks and Campy Foods! '.... I · .. I J I \ ~ , ;1 , Friday Evening~ November 3rd at 8PM Uncle Erie Requests That You Choose Your Camp Attire Very Carefully! Please R~VP The Temecula Valley Museum by October 27 ~ 2008 at (851) 884-8452 _.etIiPI _li~ I · ., -- Perfecting Your Craft with the "Write" Group A 2-hour critiquing seminar that takes you through the steps of forming a writer's group and the ins and outs of critiquing another writer's work. Guests are asked to bring five pages of your recent work for possible critique. Mystery writer, instructor, and author of of the Deputy Tempe Crabtree series, Marilyn Meredith will also have some of her books available for purchase and signing. SATURDAY, NOVEMBER 4TH - 12 NOON AT THE OLD TOWN TEMECULA COMMUNITY THEATER 42051 MAIN STREET - IN THE MERC. Writing a crime scene full of investigators, scientific evidence and suspects? Make sure you get the forensic scene right with our panel of experts. This open Q&A forum allows you to ask the experts: Crime Scene Reporter John Hall, a Riverside County Coroner, a Temecula Police Investigator and Professor of Forensics Dr. Ismael Mohamad Sebeten of National Unisversity. SATURDAY, NOVEMBER 4T,H, 2:30-3:45 t I AT THE OLD TOWN TEMEC,ULA COMMUNITY THEATER 42051 MAIN STREET 1- IN THE M~RC. - ~ r I \ l,.. \ .J' Publishing Trends - His mysteries include the popular Trailer Park Series featuring Tina Anderson (Writingr~' Amy Eastlake). Rob Preece runs BooksForABuck.com, an electroni~ publisher specializing i~ genre fiction including mystery, romance, science fiction,..andJantasy. He is currently actively seeki~g novel-length fiction He'll be joined by Kara Lennox, who also.writes-as Karen Leabo. She is the a~ard-winning, bestselling author of more than fifty novels of romance, romantic suspense and mystery for Harlequin/Silhouette, Bantam and BooksForAByck. She has four books scheduled for release in 2007. SATURDAY, NOVEMBER 4TH, 4 P.M. - 42051 MAIN STREET - IN THE MERC. VISIT THE ERLE STANLEY GARDNER EXHIBIT-AT THE TEMECULA MUSEUM ~ FOit INFORMATlor.. ........ Forensically Speaking -- "J'o _ -- - , ,; 'J-. ' I,.. I ~. 1_ l 1\ " ~ (951) 694-64-j 2- PART OF TH.rERLE STANtLY~ARDNER..MYSTERY WEEKEND OLD TOWN TEMECUL'A NOV~MBER 3-5, 2006 SEE WWW.TEMECULACALlFORNIA.COM FOR COMPLETE-SCHEDULE ...ARROWHEAD . .":_~I___I_~__'_~. De(1lcateG to helping memDers bUllO wea/ln . SEMINARS ARE FREE FIRST COME, FIRST SERVE 2Wsensiebi" & !J{itzeman AnAaoclallonofProIaaalon8lLaw "ana TEMECULA PUBLIC FINANCING AUTHORITY ITEM NO. 41 MINUTES OF A REGULAR MEETING OF THE TEMECULA PUBLIC FINANCING AUTHORITY JULY 25, 2006 A regular meeting of the City of Temecula Public Financing Authority was called to order at 7:50 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 City Clerk Jones. PUBLIC COMMENTS No input. TPFA CONSENT CALENDAR 22 Minutes RECOMMENDATION: 22.1 Approve the minutes of July 11, 2006. 23 Authorization of Special Tax Levv in Communitv Facilities District No. 03-2 (Roripauqh Ranch) RECOMMENDATION: 23.1 Adopt a resolution entitled: RESOLUTION NO. TPFA 06-04 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE TEMECULA PUBLIC FINANCING AUTHORITY AUTHORIZING THE LEVY OF A SPECIAL TAX IN COMMUNITY FACILITIES DISTRICT NO. 03-2 (RORIPAUGH RANCH) R\M inutes.tpfa\072506 24 Authorization of Special Tax Levv in Communitv Facilities District No. 03-3 (Wolf Creek) RECOMMENDATION: 24.1 Adopt a resolution entitled: RESOLUTION NO. TPFA 06-05 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE TEMECULA PUBLIC FINANCING AUTHORITY AUTHORIZING THE LEVY OF A SPECIAL TAX IN COMMUNITY FACILITIES DISTRICT NO. 03-3 (WOLF CREEK) 25 Authorization of Special Tax Levv in Communitv Facilities District No. 03-6 (Harveston II) RECOMMENDATION: 25.1 Adopt a resolution entitled: RESOLUTION NO. TPFA 06-06 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE TEMECULA PUBLIC FINANCING AUTHORITY AUTHORIZING THE LEVY OF A SPECIAL TAX IN COMMUNITY FACILITIES DISTRICT NO. 03-6 (HARVESTON II) 26 Authorization of Special Tax Levv in Communitv Facilities District No. 01-2 (Harveston) RECOMMENDATION: 26.1 Adopt a resolution entitled: RESOLUTION NO. TPFA 06-07 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE TEMECULA PUBLIC FINANCING AUTHORITY AUTHORIZING THE LEVY OF A SPECIAL TAX IN COMMUNITY FACILITIES DISTRICT NO. 01-2 (HARVESTON) 27 Authorization of Special Tax Levv in Communitv Facilities District No. 03-1 (Crowne Hill) RECOMMENDATION: 27.1 Adopt a resolution entitled: RESOLUTION NO. TPFA 06-08 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE TEMECULA PUBLIC FINANCING AUTHORITY AUTHORIZING THE LEVY OF A SPECIAL TAX IN COMMUNITY FACILITIES DISTRICT NO. 03-1 (CROWNE HILL) R\M inutes.tpfa\072506 2 MOTION: Authority Member Comerchero moved to approve the Consent Calendar. Authority Member Edwards seconded the motion and electronic vote reflected unanimous approval. ADJOURNMENT At 7:51 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\072506 3 TEMECULA PUBLIC FINANCING AUTHORITY ITEM NO. 42 Approvals City Attorney Director of Finance City Manager JAv.f"" /112 Jfr TEMECULA PUBLIC FINANCING AUTHORITY AGENDA REPORT TO: Executive Director/Authority Members FROM: Genie Roberts, Director of Finance DATE: November 14, 2006 SUBJECT: Issuance of Two Series of Tax Allocation Bonds by the Redevelopment Agency of the City of Temecula for the Temecula Redevelopment Project NO.1 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 PURCHASE AND SALE OF TWO SERIES OF TAX ALLOCATION BONDS OF THE REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA AND APPROVING OTHER MATTERS RELATED THERETO BACKGROUND: On August 8,2006, the Redevelopment Agency adopted Resolution No. RDA 06-06, expressing the intent of the Agency to issue tax allocation bonds to finance various Old Town area infrastructure projects, including relocation, demolition and grading costs, undergrounding of utilities, street improvements, civic plaza improvements and the construction of a roughly 480 space parking facility. On September 12, 2006 the Redevelopment Agency adopted Resolution No. RDA 06-07, designating various professionals, including a financial advisor, a fiscal consultant, bond counsel, disclosure counsel and a bond underwriter, to assist the Redevelopment Agency in connection with the issuance of the bonds. The Redevelopment Agency, working with its consultants, has determined that the issuance of bonds in two series will result in the most funds available to finance the redevelopment projects. One series of bonds, referred to in the bond documents as "Series A," is to be issued on a parity basis with the Redevelopment Agency's outstanding 2002 tax allocation bonds, and it is expected that a bond insurance policy and reserve fund surety bond will be obtained for the Series A bonds so that they will be rated in the highest rating category by the municipal bond rating agency that will rate the bonds. The second series of bonds, referred to in the bond documents as "Series B," is to be issued on a basis subordinate to the Series A bonds (and the outstanding 2002 Redevelopment Agency bonds), and will not be rated by a municipal rating agency. The Series A and Series B bonds are hereafter collectively referred to as the "Bonds." The proposed Bond issues will be payable solely from a pledge of the Tax Revenues arising from the Redevelopment Project. Tax increment revenues required by the Redevelopment Law to be used for housing purposes will not be pledged to or used for the repayment of the Bonds. No City general funds or other moneys will in any way be pledged or obligated towards the payment of the Bonds. The Agency is proposing to issue the Bonds in an aggregate principal amount such that will maintain a debt service coverage ratio (annual available Tax Revenues divided by annual Bond debt service) of at least 110%, thereby assuring that a portion of the Tax Revenues will be available after the payment of Bond debt service to pay annual administrative costs of the Agency. While current interest rates indicate that the aggregate initial principal amount of the Bonds will be approximately $21,500,000, the Agency is seeking a bond authorization of up to $35,000,000 in the event that interest rates decrease prior to the sale of the Bonds thereby allowing for more Bond principal to be supported by the same level of Tax Revenues. In the event that interest rates rise prior to the sale of the Bonds, less principal may be sold than currently projected. In order to issue the Bonds, the Redevelopment Law requires that the City Council approve the issuance of the Bonds by the Agency. In addition, in order for the Agency to sell the Bonds on a negotiated basis with Stone & Youngberg LLC, the bond underwriter that has been working with the Agencyon the Bond issue (the "Underwriter"), relevant State law requires that the Temecula Public Financing Authority buy the Bonds from the Agency for resale to the Underwriter. The purchase price from the Agency to be paid by the Public Financing Authoritywill be the same as the sale price of the Bonds by the Public Financing Authority to the Underwriter, so no Public Financing Authority funds are involved in the transaction. The proposed resolution of the Public Financing Authority approves the purchase and sale by it of the Bonds and makes related findings required by applicable law. The action requested of the Public Financing Authority is to adopt a resolution approving the purchase of the Bonds from the Agency and the immediate resale of the Bonds to the Underwriter. The date for the closing of the Bond issue, and the time when Bond proceeds are expected to be available, is currently expected to be December 14th FISCAL IMPACT: The Bonds will have no financial impact on the City or the Public Financing Authority, as all payments of principal and interest on the Bonds will be paid solely from the Tax Revenues of the Agency. The Agency will be obligated to use Tax Revenues from the Redevelopment Project each year to pay the debt service on the Bonds, and to pay the annual costs of administering the Bond program. ATTACHMENTS: Resolutions No. TPFA 06- Prelininary Official Statement Bond Purchase Agreement RESOLUTION NO. TPFA 06- A RESOLUTION OF THE BOARD OF DIRECTORS OF THE TEMECULA PUBLIC FINANCING AUTHORITY AUTHORIZING THE PURCHASE AND SALE OF TWO SERIES OF TAX ALLOCATION BONDS OF THE REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA AND APPROVING OTHER MATTERS RELATED THERETO THE BOARD OF DIRECTORS OF THE TEMECULA PUBLIC FINANCING AUTHORITY DOES HEREBY RESOLVE AS FOLLOWS: Section 1. The City of Temecula and the Redevelopment Agency of the City of Temecula (the "Agency") have entered into a Joint Exercise of Powers Agreement (the "Agreement") creating the Temecula Public Financing Authority (the "Authority"). Section 2. Pursuant to Article 4 of Chapter 5 of Division 7 of Title 1 of the Government Code of the State of California (the "Law"), the Authority is authorized to purchase bonds issued by the Agency the proceeds of which are to be used to finance public capital improvements, working capital, liability and other insurance needs, or projects whenever there are significant public benefits, as determined by the Authority, and pursuant to the Law and the Agreement, the Authority is further authorized to sell bonds so purchased to public or private purchasers by means of public or negotiated sales. Section 3. The Authority desires to purchase from the Agency not to exceed $35,000,000 aggregate initial principal amount of the Agency's Temecula Redevelopment Project No. 1 2006 Tax Allocation Bonds, Series A and Temecula Redevelopment Project NO.1 2006 Tax Allocation Bonds, Series B (Subordinate Lien) (collectively, the "Bonds"), solely from the proceeds received from the Authority's concurrent sale of the Bonds to Stone & Youngberg LLC (the "Underwriter"). Section 4. The Agency has caused a bond purchase contract to be submitted to the Authority for approval; and the Authority now desires to approve the bond purchase contract and any other documents necessary for the purchase and sale of the Bonds as provided below. Section 5. Pursuant to the Law, this Board of Directors hereby finds and determines that the issuance of the Bonds and the purchase and sale thereof by the Authority will result in savings in effective interest rates, bond underwriting costs and bond issuance costs and thereby result in significant public benefits to the Agency and the Authority within the contemplation of Section 6586 of the Law. Section 6. The proposed bond purchase contract (the "Bond Purchase Agreement"), by and among the Agency, the Authority and the Underwriter, in the form on file with the Secretary of the Authority, is hereby approved. The Executive Director of the Authority, or any designee of the Executive Director, is hereby authorized and directed, for and in the name and on behalf of the Authority, to accept the request that the Authority purchase the Bonds from the Agency and to accept the offer of the Underwriter to purchase the Bonds from the Authority, each subject to the terms and conditions of the Bond Purchase Agreement, and to execute and deliver the Bond Purchase Agreement for and on behalf of the Authority; provided, however, that, the net interest cost of the Bonds shall not exceed 6.00% per annum and the Underwriter's discount (without regard to any original issue discount) shall not be more than 1.50% of the principal amount of the Bonds. The final principal amount of each series of the Bonds shall be the respective amount for each such series set forth in the executed Bond Purchase Agreement, not to exceed an aggregate of $35,000,000. The approval of any additions or changes in such form of the Bond Purchase Agreement shall be conclusively evidenced by such execution and delivery by the Executive Director or his designee of the Purchase Contract. Section 7. The Chairman, the Executive Director, the Treasurer and the Secretary of the Authority, and any and all other officers of the Authority, are hereby authorized and directed, for and in the name and on behalf of the Authority, to do any and all things and take any and all actions, including execution and delivery of any and all assignments, certificates, requisitions, agreements, notices, consents, instruments of conveyance, warrants and other documents which they, or any of them, may deem necessary or advisable in order to consummate the lawful purchase and sale of the Bonds as described herein. Whenever in this resolution any officer of the Authority is authorized to execute or countersign any document or take any action, such execution, countersigning or action may be taken on behalf of such officer by any person designated by such officer to act on his or her behalf in the case such officer shall be absent or unavailable. Section 8. This Resolution shall take effect upon its adoption. PASSED, APPROVED, AND ADOPTED by the Board of Directors of the Temecula Public Financing Authority this 14th day of November , 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 14th day of November, 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 PRELIMINARY OFFICIAL STATEMENT Redevelopment Agency of the City of Temecula Temecula Redevelopment Project No.1 2006 Tax Allocation Bonds PRELIMINARY OFFICIAL STATEMENT DATED [NOVEMBER 16],2006 NEW ISSUE - BOOK-ENTRY ONLY RATINGS Series A Bonds Insured Rating: (Insured) S&P: Series A Bonds Underlying Ratfng: Series B Bonds: NOT RATED (See "Ratings" herein) In the opinion of Quint & ThimmigLLP, San Francisco, Califomia,Bond Counsel, subject, however, to certain qualifications described herein, under existing law, the interest on the 2006Bonds is excludable from gross income of the owners thereof for federal income tax purposes and is not included as an item aftax preference in computing the federal alternative minimum tax for individuals and corporations under the Internal Revenue Code of 1986, as amended, but is taken into account in computing an adjustment used in determining the federal alternative minimum tax for certain corporations. In the further opinion of Bond Counsel, such interest is exempt from California personal income taxes. See "TAX MATlERS" herein. REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA TEMECULA REDEVELOPMENT PROJECT NO.1 $17,340,000' 2006 TAX ALLOCATION BONDS, SERIES A AND $4,025,000' 2006 TAX ALLOCATION BONDS, SERIES B (SUBORDINATE LIEN) (RIVERSIDE COUNTY, CALIFORNIA) Dated: Date of Issuance Series A Bonds Due: August 1, as set forth below Series B Bonds Due: December 15, as set forth below Proceeds from the sale of the Redevelopment Agency of the City of Temecula (the "Agency") Temecula Redevelopment Project No.1 2006Tax Allocation Bonds, Series A (the "Series A Bonds") and its 2006 Tax Allocation Bonds, Series B (Subordinate Lien) (the" Series B Bonds" and, collectively with the Series A Bonds, the "2006 Bonds") will be used to (i) finance redevelopment activities within or of benefit to the Project Area,(ii) establish a Senior Subaccountwithin the Reserve Account for the Series ABonds all or a portion of which maybe funded by a reserve surety for the Series A Bonds (the "Series A Debt Service Reserve Surety Bond") in satisfaction ofthe Reserve Requirement for the Series A Bonds, (iii) establish a Subordinate Subaccountwithin theReserve Account for the Series B Bonds in satisfaction of the Reserve Requirementfor the Series B Bonds, and (iv) provide for the costs of issuing the 2006 Bonds, including the premium for the financial guaranty insurance policy and the Series A Debt Service Reserve Surety Bond. Interest on the Series A Bondswillbe payable semi-annually on each February 1 and August 1, commencing February 1, 2007 and interest on the Series B Bondswill be payable semi-annually on each June 15 andDecember 15 (each an "lnterestPayment Date," as applicable), commencing June 15, 2007. The 2006 Bondswill be issued in fully-registered form without coupons and will be registered in thename of Cede & Co., as nominee for The Depository Trust Company, New York, New York ("DTC"). DTC will act as securities depository for the 2006 Bonds. Purchases of beneficial interests in the 2006 Bondswill be made in book-entryform only in denominations of$5,000 or any integral multiple thereof. Purchasers of such beneficial interestswill not receive physical certificates representing their interests in the 2006 Bonds. Payment of principal of, interest and premium, if any, on the 2006 Bondswill bemade directlytoDTC or its nominee, Cede &Co., so long as DTC or Cede & Co. is the registered Owner of the 2006 Bonds. Disbursement of such payments to the DTC Participants (as defined herein) is the responsibility ofDTC and disbursement of suchpaymentsto the Beneficial Owners (as defined herein) isthe responsibility of the DTCParticipants, as more fully described herein. See "THE 2006 BONDS - Book-Entry and DTC" herein. The Series A Bonds will issued under a First Supplemental Indenture of Trust, dated as of December 1, 2006 (the "Supplemental Indenture" and together with the Indenture of Trust, dated as of April 1 , 2002, by and between U.S. Bank National Association, as trustee (the "Trustee") andthe Agency, the "Senior Indenture"), andthe Series B Bondswill be issued under an Indenture of Trust, dated as of December 1,2006 (the"SeriesB Indenture" and togetherwith the Senior Indenture, the "Indentures"), by and behveen the Agency andthe"Trustee". The 2006 Bonds will be sold to the TemeculaPublic Financing Authority (the "Authority") for immediate resale to the UndeIWriter. The 2006 Bonds are special obligations of the Agency and are payable solely from and secured by a pledge of a portion of the tax increment revenues (as defined herein) receivable by the Agencywith respect to the Project Area pursuant to Article 6 of Chapter 6 of the Community Redevelopment Law (herein referred toas the "Tax Increment Revenues"), subjectto the provisions of the Indenturespermittingthe application thereoffor other purposes, and bya pledge of amounts in certain funds and accounts established under the Indentures, as further discussed herein, with the pledge for the Series B Bonds subordinate to the pledge of and lien on the Tax Increment Revenues under the Senior Indenture, the Financial Guaranty Agreement and the 2006 Financial Guaranty Agreement (as defined herein). The Agency may issue debt on a parity with the Series A Bonds or the Series B Bonds. herein. The 2006 Bonds are subject to optional and mandatory redemption prior to maturity. See "THE 2006 BONDS - Redemption" The scheduled payment of principal and interest on the Series A Bondswill be insuredby amunicipal bond insurance policy to be issued simultaneously with delivery of the Series A Bonds by [INSURER]. [INSURER LOGO] PAYMENT OF lHE SERIES B BONDS IS NOT SECURED BY lHEMUNICIPAL BOND INSURANCE POLICY. TIIE SERIES B BONDS ARE PAYABLEFROM TAX INCREMENT REVENUES ON A SUBORDINATE BASIS TOTIIE SERIESA BONDS AND lHE2002 BONDS, AS DESCRIBED HEREIN. TIIESERIES B BONDS ARE NOTRATED BY ANY AGENCY, INVOLVE A HIGH DEGREE OF RISK AND ARE NOT SUITABLE FORALLINVESTORS. SEE "RISK FACTORS." TIIE2006BONDS ARESPECIAL OBLIGA TIONSOF TIIEAGENCY PAY ABLEFROM TIIE TAXINCREMENTREVENUES, AS DESCRIBED HEREIN , AND AMOUNTS IN CERTAIN FUNDS AND ACCOUNTS MAINTAINED UNDER TIIE INDENTURE AND, AS SUCH, ARE NOT A DEBT OFlHE CITY OF TEMECULA (lHE "CITY") OR TIIE STATE OF CALIFORNIA (lHE "STATE') OR ANY OF TIIE STATE'S POLmCAL SUBDNISIONS (OTIIER lHAN TIIE AGENCY, TO TIIE LIMITED EXTENT SET FORTIl IN TIIE INDENTURES), AND NEITlIER TIlE CITY NOR lHE STATE OR ANY OF ITS POLmCAL SUBDIVISIONS (OTIlER TIIANlHEAGENCY) IS LIABLE lHEREFOR. lHE 2006 BONDS ARE NOTPAYABLEFROM,AND ARE NOT SECURED BY, ANY FUNDS OF TIlE AGENCY, OTIlER TIlANlHE TAX INCREMENT REVENUES AND lHE FUNDS PLEDGED PURSUANT TOlHE INDENTURES. TIIE 2006 BONDS DO NOT CONSTIrUTE AN INDEBTEDNESS \VIlHIN lHEMEANING OF ANY CONSTITUTIONAL OR STATUTORY DEBT LIMITATION OR * Preliminary, subject to change. RESTRICTION. NEITlIER TIlE MEMBERS OF TIIEAGENCY NOR ANY PERSONSRESPONSIBLE FOR TIlEEXECUTION OF TIIE 2006 BONDSARE LIABLE PERSONALLY FOR PAYMENT OFTIlE2006 BONDS. MATURITY SCHEDULE (See Inside Cover) Thiscover page contains information for quick reference only. It is not intended to be a summary of all factors relating to an investment in the 2006 Bonds. Investors should review the entire Official Statement before making any investment decision with respect to the 2006 Bonds. The2006 Bonds are olferedwhen, as and ifissued, subject to the approval asto their legality by Quint & Thimmig LLP, San Francisco, California, Bond Counsel, and subject to certain other conditions. Certain legal matters will be passed upon for the Agency by Richards, Watson &Gershon, LosAngeles, California, acting as Counsel to the Agency, and by McFarlin & Anderson LLP, Lake Forest, California, in its capadty as Disclosure Counsel to the Agency. It is anticipated that the 2006 Bonds will be available for delivery through DTC in New York, New York, on or about December 14, 2006. Dated: , 2006 Maturity (Aue:ust 1) 2007 2008 2009 2010 2011 2012 2013 2014 2015 Maturity (December 15) 2008 2009 2010 2011 2012 2013 2014 2015 2016 MATURITY SCHEDULE' TEMECULA REDEVELOPMENT PROJECT NO.1 2006 TAX ALLOCATION BONDS. SERIES A $ Serial Series A Bonds -Base CUSIP@No. t Principal Amount $ CUSIP@ ~t Interest ...BillL % Yield % Maturity (Aue:ust 1) 2016 2017 2018 2019 2020 2021 2022 2023 20 Principal Amount $ CUSI!'" No.t Interest Rate % Yield % $ $ __% Tenn Series A Bonds due August 1, 20__ - Yield__% CUSIP@No. __% Tenn Series A Bonds due August 1, 2038 - Yield__% CUSIP@No. TEMECULA REDEVELOPMENT PROJECT NO.1 2006 TAX ALLOCATION BONDS. SERIES B (SUBORDINATE LIEN) $ Serial Series B Bonds -Base CUSIP@ No. t Principal Amount $ CUSIP@ ~t Interest ...BillL % Yield % $ $ Maturity (December 15) 2017 2018 2019 2020 2021 2022 2023 20 __% Tenn Series B Bonds due December 15, 20 - Yield __% Tenn Series B Bonds due December 15, 2038 - Yield 'preliminary, subject to change. Principal Amount $ CUSI!'" No.t Interest Rate % Yield % % CUSIP @ No. % CUSIP @ No. t CUSIP@ A registered trademark of the American Bankers Association. Copyright I(J 1999-2006 Standard & Poor's, a Division of The McGraw-Hill Companies, Inc. CUSI!'" data herein is provided by Standard & Poor's CUSIP@ Service Bureau. This data is not intended to create a database and does not serve in any way as a substitute for the CUSIP@ Service Bureau. CUSIP@ numbers are provided for convenience of reference only. Neither the Agency nor the Underwriter take any responsibility for the accuracy of such numbers. Thefollowing language to be inserted by the printer, in red, at the top of the POSfront cover: PRELIMINARY OFFICIAL STATEMENT DATED [NOVEMBER 16],2006 The following language to be inserted by the printer, in red, vertically along the left margin of the pos front cover: This Preliminary Official Statement and the information contained herein are subject to completion or amendment. Under no circumstances shall this Preliminary Official Statement constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. GENERAL INFORMATION ABOUT THE OFFICIAL STATEMENT UseofOfficialStatement. This Official Statement is submitted in connection with the offer and sale of the 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 of the 2006 Bonds. Ail summaries of the documents referred to in this Official Statement are made subject to the provisions of such documents, respectively, and do not purportto be complete statements of any or all of such provisions. Estimates and Forecasts. When used in this Official Statement and in any continuing disclosure by the Agency in any press release and in any oral statement made with the approval of an authorized officer of the Agency or any other entity described or referenced herein, the words or phrases "will likely result," "are expected to," '\vill continue," "is anticipated," "estimate," "project," ''forecast,'' "expect," "intend," and similar expressions identify "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 21E of the United States Securities Exchange Act of 1934, as amended, and Section 27 A of the United States Securities Act of 1933, as amended. Such statements are subjectto risks and uncertainties that could cause actual results to differ materially from those contemplated in such forward-looking statements. Any forecast is subject to 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 of the Agency or any other entity described or referenced herein since the date hereof. The Agency 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 Agency to give any information or to make any representations in connection with the offer or sale of the 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 Agency 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 of the 2006 Bonds by a person in any jurisdiction in which it is unlawful for such person to make such an offer, solicitation or sale. lnvolvementof Underwriter. 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 gnarantee the accuracy or completeness of such information. Stabilization of Prices. In connection with this offering, the Underwriter may overallot or effect transactions which stabilize or maintain the market price of the 2006 Bonds at a level above that which might otherwise prevail in the open market. Such stabilizing, if commenced, may be discontinued at anytime. 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. [INSURER] ("[INSURER]") makes no representation regarding the 2006 Bonds or the advisability of investing in the 2006 Bonds and makes no representation regarding, nor has it participated in the preparation of, the Official Statement other than the information supplied by [INSURER] and presented under the captions "INTRODUCTION - Municipal Bond Insurance" and APPENDIX G -"Specimen Municipal Bond Insurance Policy" herein. THE 2006BONDS HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, IN RELIANCE UPON AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS CONTAINED IN SUCH ACT. THE 2006 BONDS HAVE NOT BEEN REGISTERED OR QUALIFIED UNDER THE SECURITIES LAWS OF ANY STATE. REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA AGENCY BOARD MEMBERS Michael S. Naggar, Chairperson Maryann Edwards, Vice Chairperson Ron Roberts, BoardMember Charles W. Washington, BoardMember Jeff Comerchero, Board Member AGENCY STAFF Shawn Nelson, Executive Director Genie Roberts, Agency Treasurer John Meyer, Director of Redevelopment Susan Jones, Agency Secretary SPECIAL SERVICES Counsel to the Agency Richards, Watson & Gershon Los Angeles, California Bond Counsel Quint & Thimmig LLP San Francisco, California Disclosure Counsel McFarlin & Anderson LLP Lake Forest, California Fiscal Consultant HdL Companies Diamond Bar, California Financial Advisor Fieldman, Rolapp & Associates Irvine, California Trustee U.S. Bank National Association Los Angeles, California TABLE OF CONTENTS Pa~e INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 1 General .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 1 The Authority, the Agency and the Redevelopment Plan. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 2 Purpose ofIssuance ........................................................... 2 The 2006 Bonds .............................................................. 3 Source of Payment for the Bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 3 Parity Debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 3 Bondowners' Risks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 4 Continuing Disclosure ......................................................... 4 Tax Matters. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 4 Municipal Bond Insurance ...................................................... 4 Professionals Involved in the Offering . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 4 Additional Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 5 ESTIMATED SOURCES AND USES OF FUNDS ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 5 Redevelopment Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 5 DEBT SERVICE SCHEDULE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 6 THE 2006 BONDS .................................................................. 7 General Provisions ............................................................ 7 Redemption. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 7 Book-Entry and DTC ......................................................... 11 Discontinuance of DTC Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 11 SECURITY FOR THE 2006 BONDS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 11 Tax Increment Revenues. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 11 Pledge of Tax Increment Revenues .............................................. 12 Limited Obligations .......................................................... 13 Application of Tax Increment Revenues .......................................... 13 Reserve Account. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 16 County Payment of Tax Increment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 17 Parity Debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 18 THE [INSURER] INSURANCE POLICY ............................................... 21 The [INSURER] Insurance Policy .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 21 [INSURER] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 21 [INSURER] Information. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 21 Financial Strength Ratings of [INSURER] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 21 RISK FACTORS ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 22 Bonds Are Limited Obligations and Not General Obligations. . . . . . . . . . . . . . . . . . . . . . . . .. 22 Tax Increment Revenues. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 22 Estimated Tax Increment Revenues .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 23 Educational Revenue Augmentation Fund; State Budget Uncertainties .................. 23 Economic Concentration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 23 Concentration of Ownership. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 23 Future Land Use Regnlations and Growth Control Initiatives . . . . . . . . . . . . . . . . . . . . . . . . .. 23 Bankruptcy and Foreclosure. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 24 County Payment of Tax Increment Revenues. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 24 Seismic Factors and Flooding. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 24 Hazardous Substances. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 24 School District Litigation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 25 No Acceleration on Default . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 25 Loss of Tax Exemption. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 25 Assumptions and Projections ................................................... 25 SPECIAL RISK CONSIDERATIONS SPECIFIC TO THE SERIES B BONDS. . . . . . . . . . . . . . . . .. 25 -I- Subordination of Series B Bonds; Issuance of additional Parity Debt. . . . . . . . . . . . . . . . . . .. 25 Limited Secondary Market . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 26 No Ratings of Series B Bonds .................................................. 26 No Insurance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 26 LIMITATIONSONTAXINCREMENTREVENUES ..................................... 26 Property Tax Collection Procedure .............................................. 26 Supplemental Assessments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 27 Tax Collector Fees ........................................................... 27 Unitary Property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 27 Property Tax Rate Limitations - Article XIIIA .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 27 Article XIIIB of the California Constitution. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 28 Pass-Through Agreements; Other Contractual Obligations. . . . . . . . . . . . . . . . . . . . . . . . . . .. 29 Exclusion of Tax Increment Revenues for General Obligation Bonds Debt Service. . . . . . . .. 30 Proposition 218 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 31 Future Initiatives or Legislation ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 31 Low and Moderate Income Housing. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 31 Redevelopment Plan Limitations ................................................ 31 THE REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA . . . . . . . . . . . . . . . . . . . . . . .. 32 Agency Members ............................................................ 32 Agency Administration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 32 Agency Powers ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 32 Limitations Under 1991 Settlement Agreement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 33 Outstanding Indebtedness of the Agency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 33 Investment of Agency Funds ................................................... 34 Controls, Land Use and Building Restrictions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 34 THE REDEVELOPMENT PLAN. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 37 Description of the Project Area ................................................. 37 Proceeds of the Bonds. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 37 Land Uses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 38 Development in the Project Area . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 38 Assessed Valuation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 39 Appeals of Assessed Values . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 40 Direct and Overlapping Bonded Debt ............................................ 42 Project Area Pass-Through Agreements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 43 COVERAGE ANALYSIS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 43 THE TEMECULA PUBLIC FINANCING AUTHORITY. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 45 CERTAIN LEGAL MATTERS ........................................................ 45 ~~~..............................................................~ Enforceability of Remedies .................................................... 45 CONTINUING DISCLOSURE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 45 ABSENCE OF LITIGATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 46 TAXMATTERS ................................................................... 46 UNDERWRITING. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 46 RATINGS ........................................................................ 47 PROFESSIONAL FEES ............................................................. 47 MISCELLANEOUS ................................................................ 47 -11- APPENDIX A - SUMMARY OF CERTAIN PROVISIONS OF THE INDENTURES ......... A-I APPENDIXB - FISCAL CONSULTANT'S REPORT .................................. B-1 APPENDIX C REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA ANNUAL FINANCIAL AND COMPLIANCE REPORT FOR FISCAL YEAR ENDING JUNE 30, 2006 ............................................ C-1 FORM OF OPINIONS OF BOND COUNSEL ........................... D-1 FORM OF CONTINUING DISCLOSURE CERTIFICATE ... . . . . . . . . . . . . .. E-1 GENERAL INFORMATION REGARDING THE CITY ................... .F-1 SPECIMEN MUNICIPAL BOND INSURANCE POLICY .................. G-1 BOOK-ENTRY SYSTEM. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. H-1 APPENDIX D APPENDIX E APPENDIX F APPENDIX G - APPENDIX H -111- [INSERT REGIONAL AREA MAP IN LIEU OF THIS PAGE] OFFICIAL STATEMENT REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA TEMECULA REDEVELOPMENT PROJECT NO.1 $17,340,000' 2006 TAX ALLOCATION BONDS, SERIES A AND $4,025,000' 2006 TAX ALLOCATION BONDS, SERIES B (SUBORDINATE LIEN) (RIVERSIDE COUNTY, CALIFORNIA) INTRODUCTION This introduction is not a summary of this Official Statement. It is only a brief description of and guide to, and is qualified in its entirety by, morecompTete and detailed information contained in this Official Statement and the documents summarized or described herein. A full review should be made of the entire Official Statement. The offering of the 2006 Bonds to potential investors is made only by means of this Official Statement. References to, and summaries of, provisions of the laws of the State of California or any other document referred to herein do not purport to be complete and such references are qualified in their entirety by reference to the original source document. General This Official Statement of the Redevelopment Agency of the City of Temecula (the "Agency") provides information regarding the sale by the Agency of $17,340,000' aggregate principal amount of the Redevelopment Agency of the City of Temecula Temecula Redevelopment Project No. 1 2006 Tax AIlocationBonds, Series A (the "Series A Bonds") and its $4,025,000' aggregate principal amount of the 2006 Tax AIlocation Bonds, Series B (Subordinate Lien) (the "Series B Bonds" and, collectively with the Series A Bonds, the "2006 Bonds"). The Series A Bonds, the 2002 Bonds (as defined herein) and any additional parity debt ("Parity Debt") issued or incurred by the Agency are secured under a First SupplementalIndenture of Trust, dated as of December 1, 2006 (the "Supplemental Indenture" and together willi the Indenture of Trust, dated as of April 1, 2002, by and between the Agency and U.S. BankNational Association, as trustee (the "Trustee"), the "Senior Indenture''), as it may be supplemented hereafter. The Series B Bonds will be issued under an Indenture of Trust, dated as of December 1, 2006 (the "Series B Indenture" and together with the Senior Indenture, the "Indentures"), by and between the Agency and the Trustee. Definitions of certain capitalized terms used in this Official Statement are set forth in "APPENDIX A - SUMMARY OF CERTAIN PROVISIONS OF THE INDENTURES." This Official Statement contains brief descriptions of the 2006 Bonds, the Indentures, the Agency, the Temecula Public Financing Authority (the "Authority") and the Redevelopment Plan (as defined herein). Such descriptions do not purport to be comprehensive or definitive. Ail references in this Official Statement to documents are qualified m their entirety by reference to those documents, and references to the 2006 Bonds are qualified in their entirety by reference to the form of the 2006 Bonds included in the Indentures. Copies of the Indentures and other documents described in this Official Statement may be obtained from the Agency as described under the subheading "Additional Information" below. As indicated above, the Agency may issue Parity Debt secured under the Senior Indenture on a parity with the Series A Bonds and $28,030,000 aggregate prmcipal amount ofTemecula Redevelopment Project No. 1 2002 Tax AIlocation Bonds issued on May 8, 2002 (the "2002 Bonds,") of which $27,050,000 aggregate principal amount remain outstanding as of October 1, 2006, and any such Parity Debt will be secured under the Senior Indenture on a senior basis to the SeriesB Bonds. The Agency may issue additional debt secured under the Series B Indenture on a parity with the Series B Bonds and any such additional subordinate debt will be secured under the Series B Indenture on a subordinate basis to the Series ABonds and 2002 Bonds. See "SECURITY FOR THE 2006 BONDS - Parity Debt." * Preliminary, subject to change. On the date of issuance of the 2006 Bonds, the Agency will sell the 2006 Bonds to the Authority, a joint exercise of powers authority formed pursuant to the provisions of Articles 1 through 4 (commencing with Section 6500) of Chapter 5, Division 7, Title 1 of the California Government Code, whose members consist of the Agency and the City ofTemecula (the "City"). The Authority in turn will sell the 2006 Bonds to the Underwriter. The Authority, the Agency and the Redevelopment Plan The Authority is a California joint powers authority, organized pursuant to a Joint Exercise of Powers Agreement, dated April 10, 2001 (the "JPA Agreement''), between the City and the Agency. The JP A Agreement was entered into pursuant to the JointExercise of Powers Act, Chapter 5 (commencing with Section 6500) of Division 7 of Title 1 of the Government Code of the State of California (the "Joint Powers Act"). The Authority is a separate entity constituting a public instrumentality of the State of California and was formed for the public purpose of assisting in financing and refinancing projects pursuant to the Joint Powers Act. The Authority has no responsibility whatsoever for repayment of the 2006 Bonds. On July 12, 1988, the County of Riverside (the "County'') (prior to the incorporation of the City), adopted the "County of Riverside Redevelopment Plan 1- 1988" by Ordinance No. 658. On December 1, 1989, the City was incorporated. Ail of the area within the County Redevelopment Plan was included within the boundaries of the City. The Agency was established on April 27, 1991, by the City Council (the "City Council") of the City by adoption of Ordinance No. 91-08 under the provisions of the Community Redevelopment Law, constituting Part 1 of Division 24 (commencing with Section 33000) of the California Health and Safety Code, as amended (the "Redevelopment Law"). The City Council at the same time declared itself to be the governing body of the Agency. The five members of the City Council serve as the governing body of the Agency and exercise all fights, powers, duties and privileges of the Agency. See "THE REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA" herein. The City Council of the City adopted Ordinance No. 91-11 on May 9, 1991, and Ordinance No. 91-15 on April 9, 1991, approving the County RedevelopmentPlan as the TemeculaRedevelopmentPlan No.1 (the "Redevelopment Plan") and transferring jurisdiction overthe Redevelopment Plan to the Agency. This transfer was effective July 1, 1991. The Temecula Redevelopment ProjectNo. 1, the area encompassed by the Redevelopment Plan (the "Project Area"), is primarily commercial and industrial in nature. It is generally located along Interstate 15 from the City's northern border with the City of Murrieta to the intersection of Highway 79 on the south. The Project Area encompasses approximately 1,635 acres. The Project Area includes the Promenade Mall site, Old Town and industrial and business park areas west of the freeway. See "THE REDEVELOPMENT PLAN" herein. The total assessed valuation of taxable property in the Project Area in Fiscal Year 2006-07 is approximately$1,424,918,991 greater than the aggregate adjusted assessed valuation inthe applicable base year. Assessed valuations in the Project Area are subject to numerous risks which could result in decreases from those reported for Fiscal Year 2006-07. See "RISK FACTORS" herein. Purpose ofIssuance Proceeds from the sale of the 2006 Bonds will be used to (i) finance redevelopment activities within or of benefit to the Project Area; (ii) establish a Senior Subaccount within the Reserve Account for the Series ABonds all or a portion of which may be funded by a reserve surety for the Series ABonds (the "Series A Debt Service Reserve Surety Bond') in satisfaction of the Reserve Requirement for the Series A Bonds, (iii) establish a Subordinate Subaccount within the Reserve Account for the Series B Bonds in satisfaction of the Reserve Requirement for the Series B Bonds, and (iv) provide for the costs of issuing the 2006 Bonds, including the premium for the financial gnaranty insurance policy and the Series A Debt Service Reserve Surety Bond. See "ESTIMATED SOURCES AND USES OF FUNDS" herein. 2 The 2006 Bonds The 2006 Bonds are being issued pursuant to the laws of the State of California (the "State"), including the provisions of the Redevelopment Law, Resolution No. RDA No. 06-_, adopted by the Agency on , 2006 (the "Resolution") and Resolution No. adopted by the Authority on , 2006, and the Indentures. See "THE 2006 BONDS" herein and "APPENDIX A - SUMMARY OF CERTAIN PROVISIONS OF THE INDENTURES" attached hereto. The 2006 Bonds will be issued in denominations of $5,000 each or integral multiples thereof. Interest on the Series A Bonds is payable on each February 1 and Augnst 1, commencing on February 1, 2007, and interest on the Series B Bonds is payable on each June 15 and December 15, commencing on June 15,2007. Interest and principal on the 2006 Bonds are payable by the Trustee to DTC (as defined herein) which will be responsible for remitting such principal and interest to the Participants (as defined in Appendix H) which will in turn be responsible lor remitting such principal and interest to the Beneficial Owners (as defined in Appendix H) of the 2006 Bonds. No physical distribution of the 2006 Bonds will be made to the public initially. See "THE 2006 BONDS - Book-Entry and DTC" herein. Source of Payment for the Bonds The 2006 Bonds are special obligations of the Agency and are payable from and securedby a pledge of "Tax Increment Revenues' and amounts in certain funds and accounts held under the Indentures. The term Tax Increment Revenues is defined in the Indentures as all taxes annually allocated and paid to the Agency with respect to the Project Area following the delivery of the 2006 Bonds pursuant to Article 6 of Chapter 6 (commencing with Section 33670) of the RedevelopmentLaw and Section 16 of Article XVI of the Constitution of the State of California (the "California Constitution") including all payments, subventions and reimbursements (if any) to the Agency specifically attributable to ad valorem taxes lost by reason of tax exemptions and tax rate limitations; but excluding (a) amounts of such taxes required to be deposited into the Low and Moderate Income HousingFund of the Agency in any Fiscal Year, pursuant to Section 33334.3 of the Redevelopment Law, (b) all amounts of such taxes required to be paid by the Agency, pursuant to any Pass-Through Agreement (to the extent that the payments thereunder are not subordinated to the Agency's obligation to repay the Bonds), and (c) the Business Inventory Tax Subvention. See "SECURITY FOR THE 2006 BONDS - Tax Increment Revenues" and "LIMITATIONS ON TAX INCREMENT REVENUES - Pass-Through Agreements; Other Contractual Obligations" herein. The Tax Increment Revenues are not subject to the pledge and lien of any indebtedness of the Agency other than the 2006 Bonds, the 2002 Bonds and any Parity Debt or any loans, bonds, notes, advances or indebtedness payable from Tax Increment Revenues on a parity with the Series B Bonds ("Additional Subordinate Debt") (collectively, the "Bonds") that may be issued in accordance with theIndentures, certain obligations to the 2002 Bond Insurer and the Bond Insurer, and certain other obligations which have been made or are by their terms subordinate to the payment of the Bonds. See "THE REDEVELOPMENT AGENCY OF THE CITY OFTEMECULA -Outstanding Indebtedness of the Agency" herein. The Bonds are not payable from, and are not secured by, any funas of the Agency other than the Tax Increment Revenues, and amounts in certain funds and accounts specifically pledged therefore under the Indentures. See "SECURITY FOR THE 2006 BONDS" herein. Parity Debt The Agency may issue Parity Debt secured under the Senior Indenture on a parity with the Series ABonds and the 2002 Bonds and any such Parity Debt will be secured under the Senior Indenture on asenior basis to the Series B Bonds. The Agency may issue Additional Subordinate Debt secured under the Series B Indenture on a parity with the Series B Bonds and any such Additional Subordinate Debt will be secured under the Series B Indenture on a subordinate basis to the Series A Bonds and the 2002 Bonds. The Agency may issue or incur Paritx Debt or Additional Subordinate Debt subjectto certain specific conditions set forth in the Indentures. See 'SECURITY FOR THE 2006 Bonds - Parity Debt." 3 Bondowners' Risks Prospective investors should review this Official Statement and the Appendices hereto in their entirety and should consider certain risk factors associated with the purchase of the 2006 Bonds, some of which have been summarized in the section herein entitled "RISK FACTORS." Continuing Disclosure The Agency has covenanted, pursuant to a Continuing Disclosure Certificate executed on the date of delivery of the 2006 Bonds, for the benefit of Owners (as defined in the Indentures) and Beneficial Owners of the 2006 Bonds, to provide certain financial information and operating data related to the Agency by not later than eight months following the end of the Agency's Fiscal Year (the "Annual Report"), and to provide notices of the occurrence of certain enumerated events, if material. The Annual Report will be filed by the Agency with each Nationally Recogt!ized Municipal Securities Information Repository, and with the appropnate State information depository, If any. The notices of material events will be filed by the Agency with each Nationally Recognized Municipal Securities Information Repository or with the Municipal Securities Rulemaking Board (and with the appropriate State information depository, if any). The specific nature of the information to be contained in the Annual Report and any notices of material events is summarized below under the caption "CONTINUING DISCLOSURE." A complete copy of the Continuing Disclosure Certificate is set forth in "APPENDIX E - FORM OF CONTINUING DISCLOSURE CERTIFICATE." The covenants of the Agency in the Continuing Disclosure Certificate have been made in order to assist the underwriter of the 2006 Bonds in complying with S.E.C. Rule 15c2-12(b)(5) (the "Rule"). The Agency has no previous disclosure obligation under the Rule. Investment in the Series B Bonds, and, in the absence of the municipal gnaranty insurance policy, the Series A Bonds, involves risks that may not be appropriate for some investors. The scheduled payment of principal of and interest on the Series A Bonds when due will be insured by a municipal gnaranty insurance policy and will be payable from Tax Increment Revenues on a basis senior to that of the Series B Bonds. See "BOND INSURANCE FOR THE SERIES A BONDS." See the section of this Official Statement entitled "RISK FACTORS" for a discussion of certain risk factors which should be considered, in addition to the other matters set forth herein, in considering the investment quality of the 2006 Bonds. Tax Matters In the opinion of Quint & Thimmig LLP, San Francisco, California, Bond Counsel, under existing law, and assuming compliance by the Agency with certain covenants in the Indentures, interest on the 2006 Bonds is excluded from gross income for federal income tax purposes and is not an item of tax preference for purposes of calculating the federal alternative minimum tax Imposed on individuals and corporations. In the further opinion of Bond Counsel, interest on the 2006 Bonds is exempt from State of California personal income taxes. See "TAX MATTERS" herein. Municipal Bond Insurance Payment of principal of and interest on the Series A Bonds as the same shall become due will become secured by a financial gnaranty insurance policy to be issued simultaneously with the issuance of the Series A Bonds by [INSURER]("INSURER"). See "THE [INSURER] INSURANCE POLICY" herein. Professionals Involved in the Offering The proceedings of the Agency in connection with the issuance of the 2006 Bonds are subject to the approval as to their legality of Quint & Thimmig LLP, San Francisco, California, Bond Counsel to the Agency. McFarlin & AndersonLLP, Lake Forest, California, is serving as Disclosure Counsel to the Agency forthe Bonds. Certain legal matters for the Agency will be passed upon for the Agency by Richards, Watson & Gershon, Los Angeles, California, Counsel to the Agency. HdL Companies is acting as Fiscal Consultant to the Agency. Fieldman, Rolapp & Associates is acting as Financial Advisor to the Agency. U.S. Bank National Association, Los Angeles, California, will act as the Trustee under the Indentures. 4 Additional Information This Official Statement speaks only as of its date, and the information contained herein is subject to change without notice. Copies of documents referred to herein are available from the Agency upon written request, c/o the Redevelopment Agency of the City of Temecula, 43200 Business Park Drive, Temecula, California 92590, Attention: Agency Secretary. The Agency may impose a charge for copying, mailing and handling expenses related to any request for documents. ESTIMATED SOURCES AND USES OF FUNDS The following table sets forth a summary of the sources and uses of funds associated with the issuance and sale of the 2006 Bonds. Uses ofFunds(1) Deposit into Subordinate Subaccount within the Series B Reserve Accountc2) Deposit into Improvement Funds Deposit to Costs of Issuance Funds(3) Deposit into Administrative Expense Fund Total Uses Series A Bonds Series B Bonds Total $ $ $ ( ) ( ) ( ) ( ) ( ) ( ) $ $ $ $ $ $ Sources of Funds Par Amount of Bonds Less: Net Original Issue Discount Less: Underwriter's Discount Total Sources $ $ $ (1) The Senior SubaCcOlmt Reserve Requirement will be provided through the Series A Debt Service Reserve Surety Bond. (2) Equal to the Series B Reserve Requirement as of the date of issuance of the Series B Bonds. (3) Includes, among other things, the fees and expenses of Bond COllllsel, Disclosure COlUlsel, the Financial Advisor, the rating agency, the Trustee, theprerniurn for Municipal Bond Insurance Policy, the Series ADebt Service Reserve Surety Bond prerniurn, and the cost of printing the Preliminary and final Official Statements. With respect to the Series A Bonds, the allocation to costs of issuance includes the premium for the Municipal Bond Insurance Policy and the Reserve AccOlmt Policy. Redevelopment Activities The Agency has determined to use 2006 Bonds proceeds to finance redevelopment activities within or of benefit to the Project Area. The activities anticipated to be financed with proceeds of the 2006 Bonds are portions of Phase I of a Civic Center project. Financed improvements may include portions of, among other things, (i) Old Town Parking Structure, consisting of a multi-level public parking structure that will accommodate a maximum of approximately 480 vehicles on the southerly end of an approximately 6.75 acre parcel at Mercedes Street and Main Street, (ii) a Civic Plaza on not more than one acre at Mercedes Street and Main Street, and (iii) street improvements on both sides of approximately 1,800 linear feet of Mercedes Street, including intersections, undergrounding of utilities ana streets cape, as well as other qualifying projects. Approximately 12,000 square feet of office space located in the structure comprising the parking structure are expected to be used partially by public entities and partially by private entities and the allocable share of the costs relating thereto will be provided from available sources and not proceeds of the 2006 Bonds. [CONFIRM]. 5 DEBT SERVICE SCHEDULE The following table represents the annual debt service for the 2006 Bonds (including mandatory sinking fund redemptions on their respective Augnst land December 15 redemption dates, as applicable), assuming that there are no optional redemptions or mandatory redemptions. Period Ending 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 2037 2038 Total Series A Aggregate Debt Service Subordinate Series B Principal(l) Series A Bonds Debt Service Interest Series B Bonds Debt Service Total 2006 Bond Debt Service Principal(2) Interest (1) Principal is paid on August 1 of each year. (2) Principal is paid on December 15 of each year. 6 THE 2006 BONDS General Provisions The 2006 Bonds will be issued and sold in the initial aggregate principal amount of $17,340,000' for the Series A Bonds and $4,025,000' for the Series B Bonds. The 2006 Bonds will be delivered in registered form, without coupons, in authorized denominations of$5,000 or any integral multifles thereof. Interest on the Series A Bonds is payable semi-annually on February 1 and Augnst 1 0 each year, commencing February 1,2007, and interest on the Series B Bonds is payable semi-annually on June 15 and December 15 of each year, commencing June 15,2007 (each an "Interest Payment Date," as applicable), to the registered Owner thereof as of the close of business on the fifteenth (15th) calendar day of the month preceding each such Interest Payment Date, whether or not such fifteenth (15th) calendar day is a business aay (eacli a "Record Date," as applicable). Principal of the Series A Bonds will be payable on Augnst 1 in each of the years and in the principal amounts shown on the inside cover page hereof. Principal of the Series B Bonds will be payable on December 15 in each of the years and in the principal amounts shown on the inside cover page hereof. Interest on the 2006 Bonds is payable by check of the Trustee mailed by first class mail, postage prepaid, on each Interest Payment Date to the Owners of the 2006 Bonds at their respective addresses shown on the registration books kept by the Trustee as of the applicable Record Date; provided, however, that payment of interest to each registered Owner of $1,000,000 or more aggregate principal amount of 2006 Bonds may be made by wire transfer to an account in the United States of America as specified by such Owner in a written request filed with the Trustee prior to the applicable Record Date. Principal of and premium, if any, on the 2006 Bonds is payable in lawful money of the United States of America by check of the Trustee upon presentation and surrender thereof at the corporate trust office of the Trustee designated pursuant to the Indentures. The 2006 Bonds will be dated their date of issuance and will bear interest (calculated on the basis of a 360-day year comprised of twelve 30-day months) from the Interest Payment Date next preceding the date of authentication thereof, unless (i) a 2006 Bond is authenticated on or before an Interest Payment Date and after the close of business on the preceding applicable Record Date, in which event such 2006 Bond will bear interest from such Interest Payment Date, or (ii) a 2006 Bond is authenticated on or before the first applicable Record Date, in which event such 2006 Bond will bear interest from the date of issuance of the 2006 Bonds; or (c) if, as of the date of authentication of any 2006 Bond, interest thereon is in default, in which event such 2006 Bond shall bear interest from the date to which interest has previously been paid in full, payable on each Interest Payment Date. Any interest not paid when due or duly provided for on any Interest Payment Date shall be paid to the person in whose name the 2006 Bond is registered at the close of business on a special record date for the payment of such defaulted interest to be fixed by the Trustee. The Trustee shall give notice of such special record date to the Owner not less than 10 days prior thereto. Redem ption 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 maturing on or before Augnst 1, 20---, shall not be subject to optional redemption prior to maturity. The Series A Bonds maturing on or after Augnst 1, 20---, shall be subject to redemption in whole, or in part among maturities of the Series ABonds as shall be determined by the Agency, and in any case by lot within a maturity, at the option of the Agency, on any date on or after Augnst 1,20 , from any available source of funds, at a redemption price (expressed as a percentage of the principal amount of the Series A Bonds to be redeemed) as follows, in each case together with accrued interest thereon to the redemption date. * Preliminary, subject to change. 7 Redemption Date Augnst 1, 20_ through July 31, 20_ Augnst 1, 20_ through July 31, 20_ Augnst 1, 20_ and thereafter Redemption Price % No optional redemption of the 2006 Bonds may occur, however, unless all amounts owed to the 2006 Bond Insurer under the Financial Guaranty Agreement have been paid in full. Optional Redemption of Series B Bonds. The Series B Bonds maturing on or after December 15, 20---, shall be subject to redemption in whole or in part on any date at the Request of the Agency, among maturities as determined by the Agency, and in any case by lot within a maturity, on or after December 15, 20---, at the option of the Agency from any available source of funds, at a redemption price equal to one hundred percent (100%) of the principal amount thereof to be redeemed together with accrued interest thereon to the redemption date, plus a redemption premium (expressed as a percentage of the principal amount of the Series B Bonds to be redeemed), as set forth in the following table: Redemption Date December 15,20_ through December 14,20_ December 15,20_ through December 14,20_ December 15, 20 and thereafter Redemption Price % Mandatory Sinking Account Redemption of Series A Bonds. The Series A Term Bonds shall be subject to redemption in part by lot on Augnst 1 in each of the years set forth in the following tables from Sinking Account payments made by the Agency pursuant to the Senior Indenture, at aredemption price equal to the principal amount thereofto be redeemed, together with accrued interest thereon to the redemption date, without premium, or in lieu thereof shall be purchased pursuant to the Senior Indenture, in the aggregate respective principal amounts and on the dates as set forth in the following table; provided, however, that if some but not all of the Series A Bonds to be redeemed pursuant to the optional redemption provisions of the Senior Indenture have been redeemed pursuant to the Senior Indenture, the total amount of all future Sinking Account payments with respect to such Series A Bonds shall be reduced by the aggregate principal amount of such Series A Bonds so redeemed, to be allocated among such Sinking Account payments in integral multiples of $5,000 as determined by the Agency (notice of which determination shall be given by the Agency to the Trustee). Series A Term Bonds Maturing Augnst 1, 20_ Sinking Account Redemption Date (August 1) 20 20 20 20 20 20_ (maturity) Principal Amount To Be Redeemed or Purchased $ 8 Series A Term Bonds Maturing Augnst 1, 20_ Sinking Account Redemption Date (Augnst 1) 20 20 20 20 20 20_ (maturity) Series A Term Bonds Maturing Augnst 1, 2038 Sinking Account Principal Amount Redemption Date To Be Redeemed (August 1) or Purchased 20 $ 20 20 20 20 2038 (maturity) Principal Amount To Be Redeemed or Purchased $ In lieu of redemption of any Series A Term Bonds pursuant to the preceding paragraph, amounts on deposit in the Special Fund (to the extent not required to be transferred to the Trustee or the trustee for any Parity Debt pursuant to any Parity Debt Instrument with respect to the applicable Tax Increment Calculation Year) established under the Senior Indenture may also be used and withdrawn by the Agency at any time for the purchase of Series A Term Bonds at public or private sale as and when and at such prices (including brokerage and other charges and including accrued interest) as the Agency may in its discretion determine. The par amount of any of the Series A Term Bonds so purchased by the Agency in any twelve-month period ending on June 15 in any year shall be credited towards and shall reduce the par amount of such Series A Term Bonds required to be redeemed pursuant to the Senior Indenture on Augnst 1 in such year, upon the presentation of the purchased Series A Bonds to the Trustee on or prior to June 15 in any year. Mandatory Sinking Account Redemption of Series B Bonds. The Series B Bonds maturing on December 15,20_ and December 15,2038 (the "Series B TermBonds''), shall also be subject to redemption in whole, or in part by lot, beginning on December 15, 20_ and December 15, 20---, respectively, and on December 15 in each year thereafter as set forth in the following tables, from Sinking Account payments made by the Agency pursuant to the Series B Indenture, at a redemption price equal to the principal amount thereof to be redeemed, together with accrued interest thereon to the redemption date, without premium, or in lieu thereof shall be purchased pursuant to the Series B Indenture, in the aggregate respective principal amounts and on the respective dates as set forth in the following tables; provided, however, that if some but not all of such Series B Bonds have been redeemed pursuant to the optional redemption provisions of the Series B Indenture, the total amount of all future Sinking Account payments pursuant to the Series B Indenture shall be reduced by the aggregate principal amount of such Series B Bonds so redeemed, to be allocated among such Sinking Account payments in integral multiples of$5,000 as determined by the Agency (written notice of which determination shall be given by the Agency to the Trustee). 9 Series B Bonds Maturing December 15,20_ Sinking Account Redemption Date (December 15) 20 20 20_ (maturity) Principal Amount To Be Redeemed $ Series B Bonds Maturing December 15,2038 Sinking Account Redemption Date (December 15) 20 20 2038 (maturity) Principal Amount To Be Redeemed $ In lieu of sinking fund redemption of Series B Term Bonds, amounts on deposit in the Special Fund established under the Series B Indenture (to the extent not required to be transferred to the Trustee or the trustee for any Additional Subordinate Debt pursuant to any Additional Subordinate Debt Instrument with respect to the applicable Tax Increment Calculation Year) may also be used and withdrawn by the Agency at any time prior to the selection of Series B Bonds for redemption for the purchase of such Series B Bonds atpublic or private sale as and when and at such prices (including brokerage and other charges and including accrued interest), as the Agencymay in its discretion determine. The par amount of any of such Series B TermBonds so purchased by the Agency in any twelve-month period ending on November 1 in any year shall be credited towards and shall reduce the par amount of the Series B Term Bonds required to be redeemed on December 15 in such year, upon the presentation of the purchased Series B Bonds to the Trustee on or prior to November 1 in any year. Notice of Redemption. The Trustee on behalf and at the expense of the Agency shall mail (by first class mail, postage prepaid) notice of any redemption at least thirty (30) but not more than sixty (60) days prior to the redemption date, to (i) the Owners of any 2006 Bonds designated for redemption at their respective addresses appearing on the Registration Books, and (ii) the Securities Depositories (as defined in the Indentures) and to one or more Information Services (as defined in the Indentures) designated by the Agency to the Trustee; provided, however, that such mailing shall not be a condition precedent to such redemption and neither failure to receive any such notice nor any defect in any notice given shall affect the validity of the proceedings for the redemption of such 2006 Bonds or the cessation of the accrual of interest thereon. Such notice shall state the redemption date and the redemption price, shall designate the CUSIP" numbers of the 2006 Bonds to be redeemed, and shall require that such 2006 Bonds be then surrendered at the office of the Trustee for redemption at the redemption price, giving notice also that further interest on such 2006 Bonds will not accrue from and after the redemption date. Notwithstandingthe foregoing, in the case of any optional redemption of the 2006 Bonds, the notice of redemption shall state that the redemption is conditioned upon receipt by the Trustee of sufficientmoneys to redeem the 2006 Bonds on the anticipated redemption date, and that the optional redemption shall not occur if by no later than the scheduled redemption date sufficient moneys to redeem the 2006 Bonds have not been deposited with the Trustee. In the event that the Trustee does not receive sufficient funds by the scheduled optional redemption date to so redeem the 2006Bonds to be optionally redeemed, the Trustee shall send written notice to the Owners of the 2006 Bonds, to the Securities Depositories and to one or more of the Information Services to the effect that the redemption did not occur as anticipated, and the 2006 Bonds for which notice of optional redemption was given shall remain Outstanding for all purposes of each Indenture. 10 Manner of Redemption. Whenever provision is made in the Indentures for the redemption of less than all of the 2006 Bonds, the Agency in its discretion shall determine the maturities to be redeemed by written notice to the Trustee and the Trustee shall select the 2006 Bonds within a maturity to be redeemed by lot in any manner which the Trustee, in its sole discretion, deems appropriate. Partial Redemption of 2006 Bonds. In the event only a portion of any 2006 Bond is called for redemption, then upon surrender of such 2006 Bond the Agency shall execute and the Trustee shall authenticate and deliver to the Owner thereof, at the expense of the Agency, a new 2006 Bond or 2006 Bonds of the same interest rate and maturity, of authorized denominations, in aggregate principal amount equal to the unredeemed portion of the 2006 Bond to be redeemed. Effect of Redemption. From and after the date fixed for redemption, if funds available for the payment of the redemption price of and interest on the 2006 Bonds so called for redemption shall have been duly deposited with the Trustee, such 2006 Bonds so called shall cease to be entitled to any benefit under the Indentures other than the right to receive payment of the redemption price and accrued interest to the redemption date, and no interest shall accrue thereon from and after the redemption date specified in such notice. 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 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. See APPENDIX H - "BOOK-ENTRY SYSTEM." So long as Cede & Co. is the registered Owner ofthe2006 Bonds, references in this Official Statement to the holders or owners or registered Owners or Owners ofthe2006 Bonds shall mean Cede & Co. and shall not mean the Beneficial Owners ofthe2006Bonds. 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 Agency determines that DTC shall no longer act as securities depository, and delivers a written certificate to the Trustee to that effect, then the Agency will discontinue the Book-Entry System with DTC for the 2006 Bonds. If the Agency determines to replace DTC with another qualified securities depository, the Agency 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 of the Indentures. If the Agency 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 Trustee identified in the Indentures, and (iii) the 2006 Bonds will be transferable and exchangeable as provided in the Indentures. SECURITY FOR THE 2006 BONDS Tax Increment Revenues Tax Allocations. The Redevelopment Law provides a means for financing redevelopment projects based upon an allocation of taxes collected within a project area. The taxable valuation of a project area last equalized prior to adoption of the redevelopment plan, or base roll, is established in the base year. Thereafter, except for any period during which the taxable valuation drops below the base year level, the taxing bodies receive the taxes produced by the levy of the then-current tax rate upon the base roll. Taxes collected upon any increase in taxable valuation over the base roll (with the exception of taxes derived from 11 increases in the tax rate imposed by taxing agencies to support new bonded indebtedness) are allocated to the redevelopment agency and may be pledged to the repayment of any indebtedness incurred in financing or refinancing redevelopment. Redevelopment agencies themselves have no authority to levy property taxes and must look exclusively to such allocation of taxes. Currently, such taxes are collected by the County and paid to the affected entities. As provided in the Redevelopment Plan and pursuant to Article 6 of Chapter 6 of the Redevelopment Law and Section 160f Article XVI of the State Constitution, taxes levied upon taxable property in the project area each year by or for the benefit of the State, cities, counties, districts or other public corporations (collectively, the "Taxing Agencies"), for fiscal years beginning after the effective date of the respective redevelopment plan, will be divided as follows: (1) To taxing agencies: The portion equal to the amount of those taxes which would have been produced by the current tax rate, applied to the taxable valuation of such property in the redevelopment project area as last equalized prior to the establishment of the redevelopment project, or base roll, is paid into the funds of those respective taxing agencies as taxes by or for said taxing agencies; and (2) To the Agency: The portion of said levied taxes each year in excess of the amount referred to in (1) above is allocated to, and when collected, is paid into the Special Fund of the Agency;provided that the portion of the taxes identified in (1) above which are attributable to a tax rate levied by a taxing agency to pay indebtedness approved by the voters of that taxing agency on or after January 1, 1989, shall be allocated to, and when collected shall be paid into, the fund of such taxing agency. Such excess is referred to as "Tax Increment Revenues." The Agency has entered into various pass-through agreements and other contractual obligations whereby it has committed portions of the taxes that are allocated to the Agency as described in the preceding paragraph (2). The Tax Increment Revenues pledged to the payment of the 2006 Bonds under the Indentures specifically exclude the taxes so committed, and such amounts will not be available to make payments on the 2006 Bonds. See "LIMITATIONS ON TAX INCREMENT REVENUES - Pass-Through Agreements; Other Contractual Obligations"for a discussion of such agreements and other obligations of the Agency, and "SECURITY FOR THE 2006BONDS - Pledge of Tax IncrementRevenues"for the specific exclusions from the taxes pledged by the Agency under the Indentures to the repayment of the Bonds. Housing Set-Aside Amounts. The Redevelopment Law requires generally that, unless a specified finding is made, redevelopment agencies set aside 20% of all tax increment revenues (as described above) derived from redevelopment project areas into a low and moderate income housing fund (the "Low and Moderate Income Housing Fund''), to be used for the purpose of increasing, improving and! or preserving the supply of low and moderate income housing. Sections 33334.2 and 33334.6 of the Redevelopment Law dictate the low and moderate income housing set-aside requirement for the redevelopment project. See "LIMITATIONS ON T AX INCREMENT REVENUES - Low and Moderate Income Housing" herein. The pledge of Tax Increment Revenues under the Indentures does not include any portion of the Tax Increment Revenues arising from the Redevelopment Plan that is required to be deposited by the Agency to the Low and Moderate Income Housing Fund. Pledge of Tax Increment Revenues Pursuantto each Indenture, all right, title and interest of the Agency in Tax Increment Revenues paid to the Agency under the State Constitution, the Redevelopment Law and other applicable laws, are assigned and pledged to secure the payment of principal of and interest on the 2006 Bonds; provided, however, that the Series B Bonds are subordinate to the pledge of and lien on the TaxI ncrement Revenues under the Senior Indenture and under the Financial GuarantyAgreementand the 2006 Financial GuarantyAgreement (as such terms are defined in the Senior Indenture). Each Indenture defines the term "Tax Increment Revenues" to mean all taxes annually allocated and paid to the Agency with respect to the Project Area pursuant to Article 6 of Chapter 6 (commencing with Section 33670) of the Redevelopment Law and Section 16 of ArticleXVI of the State Constitution including all payments, subventions and reimbursements (if any) to the Agencyspecifically attributable to ad valorem taxes lost byreason of tax exemptions and tax rate limitations; but excluding (a) amounts of such taxes required to be deposited into the Low and Moderate IncomeHousing Fund of the Agency in any fiscal year pursuant to Section 33334.3 of the Redevelopment Law to the extent 12 not eligible under the Redevelopment Law for the payment of debt service on the 2006 Bonds, (b) all amounts of such taxes required to be paid by the Agency pursuant to any Pass-Through Agreement (to the extent that the payments thereunder are not subordinated to the Agency's obligation to repay the 2006 Bonds), and (c) the Business Inventory Tax Subvention. See "LIMITATIONS ON TAX INCREMENT REVENUES - Pass-Through Agreements; Other Contractual Obligations" herein for a discussion of the contractual and other obligations of the Agency giving rise to the exclusions described in the preceding clause (b). See also "LIMITATIONS ON TAX INCREMENT REVENUES - Redevelopment Plan Limitations" herein for certain other constraints on the availability of Tax Increment Revenues to pay debt service on the 2006 Bonds. Except as may be otherwise provided in any Supplemental Indenture (as defined in the Indentures), the Agency is not obligated to transfer to the Trustee, for deposit in either Special Fund with respect to any Tax Increment Calculation Year, an amount of Tax Increment Revenues which, together with other available amounts in each Special Fund, exceeds the amounts required with respect to such Tax Increment Calculation Year pursuant to the Indentures. After the amount on deposit in each Special Fund equals the aggregate amount required to be deposited into the applicable Interest Account, the Principal Account, the Sinking Account and the Reserve Account with respect to such Tax Increment Calculation Year pursuant to each Indenture, all additional Tax Increment Revenues received with respect to such Tax Increment Calculation Year shall be released from the pledge and lien of the Indentures and may be used for any lawful purpose of the Agency. The Agency has no independent power to levy and collect property taxes, and any property tax limitation, legislative measure, voter initiative or provision of additional sources of income to taxing agencies having the effect of reducing the property tax rate or collections, could reduce the amount ofT ax Increment Revenues that would otherwise be available to pay the principal of, and interest on, the 2006 Bonds. Likewise, broadened property tax exemptions could have a similar effect. See "RISK FACTORS" herein. Limited Obligations THEPRINCIP AL OF AND INTEREST AND PREMIUM, IF ANY, ON THE 2006 BONDS ARE PAYABLE SOLELY FROM TAX INCREMENT REVENUES AND FROM AMOUNTS IN CERTAIN FUNDS AND ACCOUNTS PLEDGED THEREFORE UNDER AND PURSUANT TO THE INDENTURES. THE 2006 BONDS ARE NOT A DEBT OF THE CITY, OR THE STATE OR ANY POUTICAL SUBDIVISION OF THE STATE (OTHER THAN THE AGENCY TO THE LIMITED EXTENT SET FORTHIN THE INDENTURES), AND NEITHER THE CITY NOR THE STATE OR ANY OF ITS POLITICAL SUBDIVISIONS (OTHER THAN THE AGENCY) IS LIABLE THEREFOR. THE 2006 BONDS DO NOT CONSTITUTE AN INDEBTEDNESS WITHIN THE MEANING OF ANY CONSTITUTIONAL OR STATUTORY DEBT LIMIT OR RESTRICTION. NEITHER THE MEMBERS OF THE AGENCY NOR ANY PERSON RESPONSIBLE FOR THE EXECUTION OF THE 2006 BONDS IS LIABLE PERSONALLY FOR THE 2006 BONDS BY REASON OF THE ISSUANCE THEREOF. Application of Tax Increment Revenues Under each Indenture there is established a special fund known as the "Special Fund,"which is held by the Agency. The Agency is required under the Senior Indenture to transfer all of the Tax Increment Revenues received with respect to any Tax Increment Calculation Year (Augnst 2 in any year to the next succeeding Augnst 1) to the Special Fund promptly upon receipt thereof by the Agency; provided, that the Agency will not be obligated to deposit in the Special Fund with respect to any Tax Increment Calculation Year an amount of Tax Increment Revenues which, together with other available amounts then in the Special Fund, exceeds the amounts required to be transferred to the Trustee for deposit in the applicable Interest Account, Principal Account, Sinking Account, Reserve Account and the Redemption Account with respect to any Tax Increment Calculation Year as described below. The Agency is required under the Series B Indenture to transfer all of the Tax Increment Revenues received with respect to any Tax Increment Calculation Year after satisfaction of the requirements of the Senior Indenture and any amounts due under the Financial Guaranty Agreement and the 2006 Financial Guaranty Agreement, to the Special Fund promptly upon receipt thereof by the Agency; provided, that the Agency will not be obligated to deposit in the Special Fund with respect to any Tax Increment Calculation Year an amount of Tax Increment Revenues which, together with other available amounts then in the Special Fund, exceeds the amounts required to be 13 transferred to the Trustee for depositin the applicable Interest Account, Principal Account, Sinking Account, Reserve Account and the Redemption Account with respect to any Tax Increment Calculation Year as described below. After the amount on deposit in the Special Fund equals the aggregate amount required to be deposited into the applicable Interest Account, the Principal Account, the Sinking Account, the Reserve Account and the Redemption Account with respect to such Tax Increment Calculation Year as described below, all additional Tax Increment Revenues received withrespectto a Tax Increment Calculation Year will be released from the pledge and lien of the Indentures and may be used for any lawful purpose of the Agency. Prior to the payment in full of principal of and interest and redemption premium (if any) on the Bonds and the payment in full of all other amounts payable under the Indentures and under any Parity Debt instrument, Additional Subordinate Debt instrument, any resolution, indenture of trust, trust agreement or other instrument authorizing the issuance and! or execution and delivery of any Parity Debt (collectively, a "Parity DebtInstrument''), and under any Additional Subordinate Debt instrument, any resolution, indenture of trust, trust agreement or other instrument authorizing the issuance and! or execution and delivery of any Additional Subordinate Debt (collectively, an "Additional Subordinate DebtInstrument''), the Agency will not have any beneficial right or interest in the moneys on deposit in the Special Funds, except only as provided in the Indentures and in any Parity Debt Instruments or Additional Subordinate Debt Instruments, and such moneys will be used and applied as set forth in the Indentures and in any Parity Debt Instruments and any Additional Subordinate Debt Instruments. Under each Indenture there is established a trust fund known as the "Debt Service Fund," which is held by the Trustee in trust. Moneys in each Special Fund are required to be transferred by the Agency to the Trustee in the following amounts, at the following times, for deposit by the Trustee in the following respective accounts within each Debt Service Fund, which are held by the Trustee, and in the following order of priority, provided, as referenced above that the deposits to the Special Fund for the Series B Bonds will not be made, and therefore the deposits to theAccounts relating to the Series B Bonds will not be made until after deposit to theSpecialFundforthe SeriesA Bonds, the Special Fundfor the 2002Bonds and the Special Fundfor any Parity Debt sufficient to satisfy all of the deposits to the Accountsfor the Series A Bonds, the 2002 Bonds and any Parity Debt have been made for the applicable TaxI ncrement Calculation Year of the Series A Bonds, the 2002 Bonds and any such Parity Debt and after satisfaction of any amounts due under the Financial Guaranty Agreement relating to the 2002 Bonds and the 2006Financial Guaranty Agreement Interest Account On or before each date on which interest is payable on the applicable Bonds, the Agency will withdraw from the applicable Special Fund and transfer to the Trustee for deposit in the applicable Interest Account an amount which, when added to the amount then on deposit in the applicable Interest Account, will be equal to the aggregate amount of the interest becoming due and payable on the Outstanding Bonds on such Interest Payment Date. Ail moneys in the applicable Interest Account are required to be used and withdrawn by the Trustee solely for the purpose of paying the interest on the applicable Bonds as it becomes due and payable (including accrued interest on any Bonds purchased or redeemed prior to maturity pursuant to the Indentures). Principal Account. On or before each date on which principal of the applicable Bonds becomes due and payable at maturity, the Agency will withdraw from the applicable Special Fund and transfer to the Trustee for deposit in the applicable Principal Account an amount which, when added to the amount then on deposit in the applicable Principal Account, will be equal to the amount of the principal coming due and payable on such date on the applicable Outstanding Bonds. Ail moneys in the applicable Principal Account are required to be used and withdrawn by the Trustee solely for the purpose of paying the principal on the applicable Bonds upon the maturity thereof. Sinking Account. On or before each date on which any Outstanding Term Bonds are subject to mandatory sinking account redemption, the Agency will withdraw from the applicable Special Fund and transfer to the Trustee for deposit in the applicable Sinking Account an amount which, when added to the amount then contained in the applicable Sinking Account, will be equal to the aggregate principal amount of the applicable Term Bonds subject to mandatory Sinking Account redemption on such date. Ail moneys on deposit in the applicable Sinking Account are required to be used and withdrawn by the Trustee for the sole purpose of redeeming or purchasing (in lieu of redemption) Term Bonds. 14 Reserve Account. With respect to the Series ABonds, the 2002 Bonds and any Parity Debt, a separate Reserve Account shall be established for each such Series of Bonds. In the event that the amount on deposit in the applicable Reserve Account at any time becomes less than the applicable Reserve Requirement, the Trustee upon receipt of actual knowledge will promptly notify the Agency of such fact. Promptly upon receipt of any such notice, the Agency is obligated to transfer to the Trustee from the applicable Special Fund an amount sufficient to maintain the applicable Reserve Requirement on deposit in the applicable Reserve Account. Amounts in the applicable Reserve Account shall be used and withdrawn by the Trustee for the purpose of making transfers to the applicable Interest Account, the Principal Account and the Sinking Account, in such order of priority, on any date which the principal of or interest on the applicable Bonds becomes due and payable in the event of any deficiency at any time in any of such accounts on or before each applicable Interest Payment Date or at any time for the retirement of all the applicable Bonds then Outstanding. So long as the Agency is not in default under the Indentures, any amount in the applicable Reserve Account in excess of the applicable Reserve Requirement preceding each applicable Interest Payment Date will be withdrawn from the applicable Reserve Account by the Trustee and deposited in the applicable Interest Account on or before each applicable Interest Payment Date. The Agency reserves the right in the Indentures to substitute, at any time and from time to time, a Qualified Reserve Account Credit Instrument, in lieu of or in substitution for or in place of all or any portion of the moneys then constituting the Reserve Requirement, under the terms of which the Trustee is unconditionally entitled to withdraw amounts when required for the purposes of the Indentures. Upon deposit by the Agency with the Trustee of any such Qualified Reserve Account Credit Instrument, the Trustee will withdraw from the Reserve Account and transfer to the Agency free and clear of the lien of each Indenture moneys in an amount equal to the maximum limits or principal, as applicable, of such Qualified Reserve Account Credit Instrument. "Qualified Reserve Account Credit Instrument" is defined in the Indentures to mean (i) with respect to the Series ABonds, the Series A Debt Service Reserve Surety Bond relating thereto, (ii) with respect to the 2002 Bonds means the Debt Service Reserve Surety Bond relating thereto (the "2002 Bonds Debt Service Reserve Surety Bond''), and (iii) an irrevocable standby or direct-pay letter of credit or surety bond issued by a commercial bank or insurance company and deposited with the Trustee, provided that all of the following requirements are met: (a) the long-term credit rating or claims paying ability of such bank or insurance company is in the highest rating category by Standard & Poor's Rating Group ("S&P'') and Moody's Investors Services and, if rated by AM. Best & Company, also rated in the highest category by AM. Best & Company; (b) such letter of credit or surety bond has a term of at least twelve (12) months; (c) such letter of credit or surety bond has a stated amount at least equal to the portion of the Reserve Requirement with respect to which funds are proposed to be released pursuant to theIndentures; and (d) the Trustee is authorized pursuant to the terms of such letter of credit or surety bond to draw thereunder an amount equal to any deficiencies which may exist from time to time in the Interest Account, the Principal Account or the Sinking Account for the purpose of making payments required pursuant to the Indentures. The Reserve Requirement with respect to the SeriesA Bonds will initially be satisfiedwith the Series A Debt Service Reserve Surety Bond provided by [INSURER). See "Reserve Account- [INSURER} Series A Debt Service Reserve Surety Bond" below. The Reserve Requirement with respect to the Series B Bonds will initially be satisfied with a portion of the proceeds of the Series B Bonds. The Series A Debt Service Reserve Surety Bond may only be drawn for payments with respect to the Series A Bonds and the 2002 Bonds Debt Service Reserve Surety Bond may only be drawn for payments with respect to the 2002 Bonds. See" - Reserve Account" below. Redemption Account On or before each date on which Bonds are to be redeemed pursuant to optional redemption, the Agency will withdraw from the applicable Special Fund and transfer to the Trustee for deposit in the applicable Redemption Account an amount required to pay the principal of and premium, if any, on the Bonds to be redeemed on such date, taking into account any funds then on deposit in the applicable Redemption Account. Ail moneys in such Redemption Account are required to be used and withdrawn by the Trustee solely for the purpose of paying the principal of and premium, if any, on the Bonds to be redeemed pursuant to optional redemption on the respective dates set for such redemption. 15 Reserve Account Pursuant to the Senior Indenture, a reserve account has been established and is held by the Trustee in trust for the benefit of the Agency and the registered owners of the Series A Bonds and a reserve account has been established and is held by the Trustee in trust for the benefit of the Agency and the registered owners of the 2002 Bonds, and pursuant to the Series B Indenture a reserve account (each a "Reserve Account") has been established and is held by the Trustee in trust for the benefit of the Agency and the registered Owners of the Series B Bonds and any Additional Subordinate Debt. The amount on deposit in each Reserve Account is required to be maintained at an amount equal to the applicable Reserve Requirement. The term "Reserve Requirement" with respect to the Series A Bonds means, as of the date of any calculation by the Agency, the least of (a) Maximum Annual Debt Service with respect to the Series A Bonds, (b) one hundred twenty-five percent (125%) of average Annual Debt Service with respect to the Series ABonds, or (c) ten percent (10%) of the initial principal amount of the Series ABonds. For purposes of the preceding sentence, the terms "Maximum Annual Debt Service" and "Annual Debt Service" shall only include the Series A Bonds and not all Bonds outstanding. The term "Reserve Requirement" with respect to the Series B Bonds means, as of the date of any calculation by the Agency, (i) the least of (a) Maximum Annual Debt Service - Reserve Requirement, or (b) one hundred twenty-five percent (125%) of average Annual Debt Service - Reserve Requirement, or (c) ten percent (10%) of the initial principal amount of the 2006 Bonds and the 2006 Senior Bonds; less (ii) the Reserve Requirement ( as defined in the Senior Indenture) applicable to the 2006 Senior Bonds. For purposes of the foregoing, "Annual Debt Service - Reserve Requirement" means, for each Tax Increment Calculation Year, the sum of (a) the interest payable on the Outstanding Series B Bonds and Series A Bonds in such Tax Increment Calculation Year, and (b) the principal amount of the Outstanding Series B Bonds and Series A Bonds scheduled to be paid in such Tax Increment Calculation Year upon the maturity or mandatory sinking account redemption thereof. For purposes of the foregoing, "Maximum Annual Debt Service - Reserve Requirement" means, as of the date of calculation, the largest amount obtained by totaling, for the current or any future Tax Increment Calculation Year, the sum of (a) the amount of interest payable on the Series B Bonds and the Series A Bonds in such Tax Increment Calculation Year, assuming that principal of each thereof is paid as scheduled and that any mandatory sinking fund payments are made as scheduled, and (b) the amount of principal payable on the Series B Bonds and the Series A Bonds in such Tax Increment Calculation Year, including any principal required to be prepaid by operation of mandatory sinking fund payments. So long as the applicable Reserve Requirement shall at any time be maintained in the applicable Reserve Account in the form of a combination of cash and a Qualified Reserve Account Credit Instrument, the Trustee shall apply the amount of such cash to make any payment required to be made from the applicable Reserve Account before the Trustee shall draw any moneys under the applicable Qualified Reserve Account Credit Instrument for such purpose. In the event that the Trustee shall at any time draw funds under the applicable Qualified Reserve Account CrediUnstrument to make any payment then required to be made from the applicable Reserve Account, the Tax Increment Revenues thereafter received by the Trustee, to the extent remaining after making the other deposits (if any) then required to be made to the Interest Account, Principal Account and Sinking Account pursuant to the Special Fund provisions of the Indentures, shall be used to reinstate the applicable Qualified Reserve Account Credit Instrument. If there is more than one Qualified Reserve Account Credit Instruments held in the applicable Reserve Account, any draw or reinstatement shall be made upon them pro rata. TheReserveRequirementwith respect to theSeriesA Bonds will initially besatisfiedwith the Series A Debt Service Reserve Surety Bond provided by [INSURER). See "ReserveAccount - [INSURER} Series A Debt Service Reserve Surety Bond" below. The Reserve Requirement with respect to the Series B Bonds will initially be satisfied with a portion of the proceeds of the Series B Bonds. The Series A Debt Service ReserveSurety Bond may only be drawnfor payments with respect to the Series A Bonds and the 2002 Bonds Debt Service Reserve Surety Bondmay only be drawn for payments with respect to the 2002 Bonds. Each Debt Service Reserve Surety Bond is sized in an amount equal to the applicable Reserve Requirement. {INSURER! SeriesA Debt Service Reserve Surety Bond Application has been made to [INSURER] for a commitment to issue a surety bond (the "Series A Debt Service Reserve Surety Bond") with respect to the Series ABonds. The Series A Debt Service Reserve Surety Bond will provide that upon notice from the Trustee to [INSURER] to the effect that insufficient amounts are on deposit in the Debt Service Fund to pay 16 the principal of (at maturity or pursuant to mandatory redemption requirements) and interest on the Series ABonds, the Agency will promptly deposit with the Trustee an amount sufficient to pay the principal of and interest on the Series A Bonds or the available amount of the Series A Debt Service Reserve Surety Bond, whichever is less. Upon the later of: (i) three (3) days after receipt by the Agency of a Demand for Payment in the form attached to the Series A Debt Service Reserve Surety Bond, duly executed by the Trustee; or (ii) the payment date of the Series ABonds as specified in the Demand for Payment presented by the Trustee to [INSURER], [INSURER] will make a deposit of funds in an account with , in , , or its successor, sufficient for the payment to the Trustee, of amounts which are then due to the Trustee (as specified in the Demand for Payment) subject to the Surety Bond Coverage. The available amount of the Series A Debt Service Reserve Surety Bond is the initial face amount of the Series ADebt Service Reserve Surety Bond less the amount of any previous deposits by [INSURER] with the Trustee which have not beenreimbursed by the Agency. The Agency and [INSURER] have entered into the 2006 Financial Guaranty Agreement (the "2006 Financial Guaranty Agreement"). Pursuant to the 2006 Financial Guaranty Agreement, the Agency is required to reimburse [INSURER], within one year of any deposit, the amount of such deposit made by [INSURER] with the Trustee under the Series A Debt Service Reserve Surety Bond. Such reimbursement shall be made only after all required deposits to the Debt Service Fund with respect to the Series A Bonds have been made. Although the Series A Bonds are on a parity with the 2002 Bonds, the Series ADebt Service Reserve Surety Bond may only be drawn for payments with respect to the Series A Bonds and the 2002 Bonds Debt Service Reserve Surety Bond may only be drawn for payments with respect to the 2002 Bonds. The initial amount of the Series A Debt Service Reserve Surety Bond is an amount equal to the Reserve Requirement with respect to the Series A Bonds. Under the terms of the 2006 Financial Guaranty Agreement, the Agency is required to reimburse [INSURER], with interest, until the face amount of the Series A Debt Service Reserve Surety Bond is reinstated before any deposit is made to the Agency. No optional redemption of Series A Bonds may be made until all amounts owed by the Agency to [INSURER] have been paid in full. The Series A Debt Service Reserve Surety Bond will be held by the Trustee in the applicable Reserve Account and is provided as an alternative to the Agency depositing funds equal to the Series A Debt Service Requirement for outstanding Series A Bonds. The Series A Debt Service Reserve Surety Bond will be issued in the face amount equal to the Reserve Requirement for the Series A Bonds and the premium therefor will be fullypaid by the Agency at the time of delivery of the Series A Bonds. County Payment of Tax Increment The County's administrative practice is to pay to the Agency property tax payments at 100% of the Agency's share of levied amounts, subject to any tax sharing agreement with the County. Consequently, delinquent property taxes do not impact the Agency's tax increment revenues. The Riverside County Treasurer-Tax Collectorremits tax increment revenues to the Agency in periodic payments each fiscal year. If any tax or assessment which was distributed to the Agency is subsequently changed by correction, cancellation or refund, a pro rata adjustment for the amount of the change is made on the records of the Treasurer and Auditor of the County. Such adjustment for a decrease in the tax or assessment is treated by the County as an interest-free offset against future payments of tax levies to the Agency. The foregoing payment description is an administrative practice of the County that could be subjectto change. While the current administrative practice continues in existence and is carried out as described above, the County's administrative practice may help protect the Owners of the Bonds from the risk of delinquencies in ad valorem taxes. 17 Parity Debt Series A Bonds Parity Debt. Pursuantto the Senior Indenture, in addition to the Series A Bonds and the 2002 Bonds, the Agency may issue or incur Parity Debt payable from Tax Increment Revenues on a parity with the Series A Bonds and the 2002 Bonds in such principal amount as will be determined by the Agency. The Agency may issue or incur any such Parity Debt subject to the following specific conditions: (a) No Event of Default, as defined in the Senior Indenture, shall have occurred and be continuing, and the Agency shall otherwise be in compliance with all covenants set forth in the Senior Indenture. (b) Subject to paragraph (d) below, the Tax Increment Revenues for the then current Fiscal Year (based on the assessed valuation of property in the Project Area as evidenced in a written document from an appropriate official of the County) plus, at the option of the Agency, the Additional AIlowance shall be at least equal to one hundred thirty percent (130%) of the Maximum Annual Debt Service on the Bonds (other than the Series B Bonds and any Additional Subordinate Debt) and such new Parity Debt. (c) Subject to paragraph (d) below, the issuance of such Parity Debt shall not cause the Agency to exceed any applicable Plan Limitations (as defined in the Indentures). Without limiting the generality of the foregoing, the Agency shall not issue or execute and deliver any Parity Debt in the event and to the extent that either (i) the sum of the aggregate amount of debt service on all outstanding obligations of the Agency payable from Tax Increment Revenues, including such Parity Debt, exceeds the aggregate amount of Tax Increment Revenues which are eligible to be allocated and paid to the Agency while such obligations remain outstanding, or (ii) the aggregate principal amount of all outstanding obligations of the Agency, including such Parity Debt, exceeds any applicable limit in the Redevelopment Plan on the aggregate principal amount of indebtedness which the Agency is permitted to have outstanding at anyone time. (d) In computing the Maximum Annual Debt Service on the Series A Bonds, the 2002 Bonds and any Parity Debt for purposes of paragraph (b) above, and the debt service for purposes of paragraph (c) above, if interest on any Bonds (other than the Series B Bonds or Additional Subordinate Debt) is payable at a variable rate or is otherwise incapable of determination, (A) if the Agency has entered into a variable to fixed swap arrangementwith respect to such Bonds (other than the Series B Bonds or any Additional Subordinate Debt) the term of which extends for the term of such Bonds (other than the Series B Bonds or Additional Subordinate Debt) and payments by the counterparty on the swap arrangement are gnaranteed or insured by an entity whose unsecured debt obligations are rated in the highest rating category by Moody's and S&P, the maximum annual debt service due by the Agency under the swap arrangement shall be used rather than the maximum annual debt service on such Bonds (other than the Series B Bonds and any Additional Subordinate Debt), or (B) the Bonds (other than the Series B Bonds and any Additional Subordinate Debt) shall be assumed to bear interest at a fixed rate equal to the average of the daily interest rate on such Bonds (other than the Series B Bonds and any Additional Subordinate Debt) during the three-year period preceding the first day of the month in which the determination is made (and, if such Bonds (other than the Series B Bonds and any Additional Subordinate Debt) have not been outstanding for the entire three-year period, for the portion of such time period such Bonds (other than the Series B Bonds and any Additional Subordinate Debt) were not outstanding, the interest rate on a debt instrument of similar credit quality and maturity as determined by an Independent Redevelopment Consultant). 18 (e) The related Parity Debt Instrument shall provide that: (i) Interest on such Parity Debt shall be payable on February 1 and Augnst 1 in each year in which interest is payable on such Parity Debt except the first twelve-month period, during which interest may be payable on February 1 or Augnst 1 for the Series ABonds and June 15 or December 15 for the Series B Bonds and provided that (A) there shall be no requirement that such Parity Debt pay interest on a current basis and (B) the interest rate on all Parity Debt shall be fixed for the term of the Parity Debt; (ii) The principal of such Parity Debt shall be payable on Augnst 1 in any year in which principal is payable on such Parity Debt; and (iii) Money (and/or a Qualified Reserve Account Credit Instrument) shall be deposited in the applicable Reserve Account in an amount such that the amount in such Reserve Account is equal to the applicable Reserve Requirement in effect immediately following the issuance of the Parity Debt. (f) The Agency shall deliver to the Trustee a Certificate of the Agency certifying that the conditions precedent to the issuance of such Parity Debt set forth in subsections (a), (b), (c) and (e) above have been satisfied. Series B Bonds Additional Subordinate Debt. Pursuantto the Series B Indenture, in addition to the Series B Bonds, the Agency may issue or incur Additional Subordinate Debt payable from Tax Increment Revenues on a parity with the Series B Bonds in such principal amount as will be determined by the Agency. The Agency may issue or incur any such Additional Subordinate Debt subject to the following specific conditions: (a) No Event of Default, as defined in the Series B Indenture, shall have occurred and be continuing, and the Agency shall otherwise be in compliance with all covenants set forth in the Series B Indenture. (b) Subject to paragraph (d) below, the Tax Increment Revenues for the then current Fiscal Year (based on the assessed valuation of property in the Project Area as evidenced in a written document from an appropriate official of the County) plus, at the option of the Agency, the Additional AIlowance shall be at least equal to one hundred ten percent (110%) of the Maximum Annual Debt Service on the Bonds and such new Additional Subordinate Debt. (c) Subject to paragraph (d) below, the issuance of such Additional Subordinate Debt shall not cause the Agency to exceed any applicable Plan Limitations. Without limiting the generality of the foregoing, the Agency shall not issue or execute and deliver any Additional Subordinate Debt in the event and to the extent that either (i) the sum of the aggregate amount of debt service on all outstanding obligations of the Agency payable from Tax Increment Revenues, including such Additional Subordinate Debt, exceeds the aggregate amount of Tax Increment Revenues which are eligible to be allocated and paid to the Agency while such obligations remain outstanding, or (ii) the aggregate principal amount of all outstanding obligations of the Agency, including such Additional Subordinate Debt, exceeds any applicable limit in the Redevelopment Plan on the aggregate principal amount of indebtedness which the Agency is permitted to have outstanding at anyone time. (d) In computing the Maximum Annual Debt Service on the Bonds and the Additional Subordinate Debt for purposes of paragraph (b) above, and the debt service for purposes of paragraph (c) above, if interest on any Bonds or the Additional Subordinate Debt is payable at a variable rate or is otherwise incapable of determination, (A) if the Agency has entered into a variable to fixed swap arrangement with respect to such Bonds or Additional Subordinate Debt the term of which extends for the term of such Bonds or Additional Subordinate Debt and payments by the counterparty on the swap arrangement are gnaranteed or insured by an entity whose unsecured debt obligations are rated in the highest rating category by Moody's and S&P, the maximum annual debt service due by the Agency under the swap arrangement shall be used rather than the maximum annual debt service on such Bonds or Additional Subordinate Debt, or (B) the Bonds or Additional 19 Subordinate Debt shall be assumed to bear interest at a fixed rate equal to the average of the daily interest rate on such Bonds or Additional Subordinate Debt during the three-year period preceding the first day of the month in which the determination is made (and, if such Bonds or Additional Subordinate Debt have not been outstanding for the entire three-year period, for the portion of such time period such Bonds or Additional Subordinate Debt were not outstanding, the interest rate on a debt instrument of similar credit quality and maturity as determined by an Independent Redevelopment Consultant). (e) The related Additional Subordinate Debt Instrument shall provide that: (i) Interest on such Additional Subordinate Debt shall be payable on June 15 and December 15 in each year in which interest is payable on such Additional Subordinate Debt except the first twelve-month period, during which interest may be payable on June 15 or December 15 and provided that (A) there shall be no requirement that such Additional Subordinate Debt pay interest on a current basis and (B) the interest rate on all Additional Subordinate Debt shall be fixed for the term of the Additional Subordinate Debt; (ii) The principal of such Additional Subordinate Debt shall be payable on December 15 in any year in which principal is payable; and (iii) Money (and/or a Qualified Reserve Account Credit Instrument) shall be deposited in the applicable Reserve Account in an amount such that the amount in such Reserve Account is equal to the applicable Reserve Requirement in effect immediately following the issuance of the Additional Subordinate Debt. (f) The Agency shall deliver to the Trustee a Certificate of the Agency certifying that the conditions precedent to the issuance of such Additional Subordinate Debt set forth in subsections (a), (b), (c) and (e) above have been satisfied. "Additional AIlowance" is defined under the Senior Indenture as the sum of the following: (a) the amount of Tax Increment Revenues which, as shown in the report of an Independent Redevelopment Consultant, are estimated to be receivable by the Agency in the next succeeding Fiscal Year as a result of increases in the assessed valuation of taxable property in the Project Area dueto construction which has been completed but has not yet been reflected on the tax roll; (b) the amount of Tax Increment Revenues which, as shown in the report of an Independent Redevelopment Consultant, are estimated to be receivable by the Agency in the next succeeding Fiscal Year as a result of increases in the assessed valuation of taxable property in the Project Area due to inflation at an assumed annual inflation rate equal to the lesser of (i) the annual rate of inflation for the preceding twelve-month period for which fignres are available or (ii) two percent (2%), but only if the rate of inflation had increased by at least two percent (2%) in each of the preceding three Fiscal Years; and (c) an amount equal to the estimated earnings on amounts in the Reserve Accounts in the next succeeding Fiscal Year based upon the amount that is expected to be on deposit in the Reserve Accounts following the issuance of the then proposed Parity Debt (not to exceed the amount of the Reserve Requirement) and an interest rate equal to the lesser of the rate at which amounts in the Reserve Accounts are then invested or five percent (5%) per annum. For purposes of such definition, the term "increases in the assessed valuation" means the amount by which the assessed valuation of taxable property in the Project Area in the next succeedingFiscal Year is estimated to exceed the assessed valuation of taxable property in the Project Area (as reported by the County Auditor-Controller) in the Fiscal Year in which such calculation is made. "Additional AIlowance" is defined under the Series B Indenture as the sum of the following: (a) the amount of Tax Increment Revenues which, as shown in the report of an Independent Redevelopment Consultant, are estimated to be receivable by the Agency in the next succeeding Fiscal Year as a result of increases in the assessed valuation of taxable property in the Project Area dueto construction which has been completed but has not yet been reflected on the tax roll; and (b) the amount of Tax Increment Revenues which, as shown in the report of an Independent Redevelopment Consultant, are estimated to be receivable by the Agency in the next succeeding Fiscal Year as a result of increases in the assessed valuation of taxable property in the Project Area due to inflation at an assumed annual inflation rate equal to the lesser of (i) the annual rate of inflation for the preceding twelve-month period for which fignres are available or (ii) two percent (2%), but only if the rate of inflation had increased by at least two percent (2%) in each of the 20 preceding three Fiscal Years. For purposes of such definition, the term "increases in the assessed valuation" means the amount by which the assessed valuation of taxable property in the Project Area in the next succeeding Fiscal Year is estimated to exceed the assessed valuation of taxable property in the Project Area (as reported by the County Auditor-Controller) in the Fiscal Year in which such calculation is made. In the Series B Indenture, the Agency has covenanted not to issue any Parity Debt under the Senior Indenture, other than Refunding Debt (as defined in the Senior Indenture), unless (a) the Agency satisfies each of the requirements of paragraphs (a), (b), (c) and (d) as set forth above with respectto Parity Debt as if such Parity Debt was to be Additional Subordinate Debt under the Series B Indenture; (b) the Parity Debt satisfies all applicable requirements of the Senior Indenture; and (c) the Agency provides notice of the incurrence thereof under the Continuing Disclosure Certificate within ten (10) days following the date of incurrence of such loan, advance or indebtedness, relating to the Series B Bonds including the principal amount thereof, the maturity date thereof and the date of incurrence thereof. With respect to the Series ABonds, the Agency may issue or incur Refunding Debt in such principal amount as shall be determined by the Agency so long as the conditions set forth above under Series ABonds Parity Debt in subsections (a), (c) and (e) above are met, and the Agency delivers to the Trustee a Certificate of the Agency certifying that such conditions precedent to the issuance of such Refunding Debt set forth in subsections (a), (c) and (e) above have been met and such Refunding Debt is otherwise in accordance with the definition of Refunding Debt. With respect to the Series B Bonds, the Agency may issue or incur Refunding Debt in such principal amount as shall be determined by the Agency so long as the conditions set forth above under Series B Bonds Additional Subordinate Debt in subsections (a), (c) and (e) above are met, and the Agency delivers to the Trustee a Certificate of the Agency certifying that such conditions precedent to the issuance of such Refunding Debt set forth in subsections (a), (c) and (e) above have been met and such Refunding Debt is otherwise in accordance with the definition of Refunding Debt. "Refunding Debt" is defined in the Indentures to mean any loan, bond, note, advance or indebtedness the proceeds thereof are used to refund all or a portion of any Parity Debt or Additional Subordinate Debt (as applicable) (and to pay costs of issuance of and fund a reserve account for such Refunding Debt), and the debt service due on such Refunding Debt with respect to a Tax Increment Calculation Year in which the Refunding Debt is Outstanding is not greater than the debt service due with respectto such Tax Increment Calculation Year on the portion of the Parity Debt or Subordinate Additional Debt refunded with the proceeds of such Refunding Debt. THE [INSURER] INSURANCE POLICY The information relating to [INSURER} ("INSURER'') contained below and inAppendixG has been furnished by [INSURER). No representation is made herein by the Agency or the Underwriter as to the accuracy or the adequacy of such information or as to the absence of material adverse changes in such information subsequent to the date hereof The [INSURER] Insurance Policy [TO FOLLOW] [INSURER] [INSURER] Information Financial Strength Ratings of [INSURER] 21 RISK FACTORS The following information should be considered by prospective investors in evaluating the 2006 Bonds. However, the following does not purport to be an exhaustive listing of risks and other considerations which may be relevant to investing in the 2006 Bonds. In addition, the order in which the following information is presented is not intended to reflect the relative importance of any such risks. Bonds Are Limited Obligations and Not General Obligations The 2006 Bonds and the interest thereon are limited obligations of the Agency and do not constitute a general obligation of the Agency. See "SECURITY FOR THE 2006 BONDS" herein. No Owner of the 2006 Bonds may compel exercise of the taxing power of the State or any of its political subdivisions or agencies to pay the principal of or premium, if any, or interest due on the 2006 Bonds. Tax Increment Revenues The Tax Increment Revenues allocated to the Agency, which constitute the primary security for the 2006 Bonds, are determined by the incremental assessed value of taxable property in the Project Area, the current rate or rates at which property in the Project Area is taxed and the percentage of taxes collected in the Project Area. Several types of events which are beyond the control of the Agency could occur and cause a reduction in available Tax Increment Revenues. A reduction of taxable assessed values of property in the Project Area caused by economic or other factors beyond the Agency's control could occur (such as successful appeals by the property owner for a reduction in a property's assessed value, a reduction of the general inflationary rate, areduction in transfers of property, construction activity or other events that permit reassessment of property at lower values, or the destruction of property caused by natural or other disasters), andhave occurred in recent years, thereby causing a reduction in Tax Increment Revenues. Such a reduction in Tax Increment Revenues could have an adverse impact on the Agency's ability to make timely payment of principal of and interest on the 2006 Bonds. As described in greater detail under "LIMITATIONS ON TAX INCREMENT REVENUES - Property Tax Rate Limitations - Article XIIIA," Article XIIIA of the California Constitution provides that the full cash value base of real property used in determining taxable value may be adjusted from year to year to reflect the inflation rate, not to exceed a two percent (2%) increase for any given year; or may be reduced to reflect a reduction in the consumer price index, comparable local data or any reduction in the event of declining property value caused by damage, destruction or other factors (as described above). Such measure is computed on a calendar year basis. Any resulting reduction in the full cash value over the term of the Bonds could reduce Tax Increment Revenues securing the 2006 Bonds. See "LIMITATIONS ON TAX INCREMENT REVENUES - Property Tax Rate Limitations - Article XIIIA" Historically, some property owners within the Project Area have appealed for reductions in the assessed value of their properties. Reductions in the assessed value of the secured property in the Project Area in recent years, as shown in the summaries of historical assessed valuation set forth herein can be attributed in part to such appeals and reductions in property values generally. Tax Increment Revenues may be reduced from current levels as a result of such appeals and reductions in property values generally. See "THE REDEVELOPMENT PLAN - Appeals of Assessed Values" herein. In addition to the other existing limitations on Tax Increment Revenues described below under "LIMITATIONS ONT AX INCREMENT REVENUES,"the California electorate or Legislature could adopt a constitutional or legislative property tax decrease with the effect of reducing Tax Increment Revenues payable to the Agency. There is no assurance that the California electorate or Legislature will not at some future time approve additional limitations that could reduce the Tax Increment Revenues and adversely affect the security of the 2006 Bonds. The Agency has no power to levy and collect property taxes. Any substantial delinquencies in the payment of property taxes by property owners in the Project Area could have an adverse effect on the Agency's ability to make timely debt service payments on the 2006 Bonds. Tax Increment Revenues 22 allocated to the Agency are distributed throughout the year in installments, with the first installment distributed in November and the last installment distributed in Augnst of the succeeding fiscal year. The payments are adjusted to reflect actual collections. See "LIMITATIONS ON TAX INCREMENT REVENUES - Property Tax Collection Procedure" herein. Estimated Tax Increment Revenues The Agency has projected future Tax Increment Revenues. The Agency believes these assumptions to be reasonable, but to the extentthe assessed valuation, the tax rates or the percentage of taxes collected are less than the Agency's assumptions, the Tax Increment Revenues available to pay debt service on the 2006 Bonds would be reduced. See "COVERAGE ANALYSIS" herein. No representations are being made as to the future Tax Increment Revenues, or as to whether the estimated Tax Increment Revenues as shown under the heading "COVERAGE ANAL YSIS"will be realized. Educational Revenue Augmentation Fund; State Budget Uncertainties The State budget for Fiscal Year 1993-94 transferred $2.6 billion to school districts from cities, counties and other local governments, including redevelopment agencies. As part of the budget's transfer of moneys to school districts, the State Legislature required redevelopment agencies to transfer approximately $65 million to the Educational Revenue Augmentation Fund in both Fiscal Years 1993-94 and 1994-95. From 1994 through 2001-02, state budgets were adopted with no additional shifting of tax increment increases from redevelopment agencies. Commencing in 2002, legislation has been enacted requiring statewide shift of $75 millionfor Fiscal Year 2002-03, $13 5 million for Fiscal Year 2003-04, $250 million for Fiscal Year 2004-05 and $250 million for Fiscal Year 2005-06. There was no shift required for Fiscal Year 2006-07. The amount of payments by the Agency was $253,618 with respect to Fiscal Year 2002-03, $445,334 with respectto Fiscal Year 2003-04, $769,553 with respect to Fiscal Year 2004-05 and $745,277with respect to Fiscal Year 2005-06. There can be no assurance that the State Legislature will not require similar or increased deposits in future years to deal with budget deficits. Economic Concentration A significant portion of the Project Area assessed value is related to commercial and industrial property. Consequently, property values in the Project Area are strongly influenced by the vitality of the regional economy and the resulting demand for commercial and industrial space. To the extent that the County economy were to decline, resulting in diminished demand for commercial and industrial space, such a decline could negatively impact the Project Area's assessed values and the receipt of Tax Increment Revenues. Concentration of Ownership The largest property taxpayer in the Project Area accounts for approximately 12.41% of the incremental assessed value of the Project Area, and the ten largest property taxpayers account for approximately 43.30% of incremental assessed value in the Project Area. The largest property taxpayer is expected to undergo an expansion, which will increase its percent of total assessed value. Concentration of ownership presents a risk in that if one or more of the largest property owners were to default on their taxes or were to successfully appeal the tax assessments on property within the Project Area, a substantial decline in Tax Increment Revenues would result. The largest property owners and their ability to pay property taxes could be adversely affected by various factors such as recession or a decline in the value of real estate. As of October 20,2006, the County's records indicate that property taxes for the ten largestassessees are current through the second installment of Fiscal Year 2005-06. One of the ten largest property taxpayers filed assessment appeals that are currently pending. See "THE REDEVELOPMENT PLAN - Assessed Valuation" and "APPENDIXB - FISCAL CONSULTANT'S REPORT - IV - Tax AIlocation and Disbursement - F.- Assessment Appeals" herein. Future Land Use Regulations and Growth Control Initiatives In the past, citizens of a number of local communities in Southern California have placed measures on the ballot designed to limit the issuance of building permits or impose other restrictions to control the rate 23 of future growth in those areas. It is possible that future initiatives could be enacted, could be applicable to the City and have a negative impact on the ability of developers in the Project Area to complete any existing or proposed development. Bondowners should assume that any event that significantly affects the ability to develop land in the City could cause the land values within the Project Area to decrease substantially and could affect the willingness and ability of the owners of land within the Project Area to pay property taxes when due. There can be no assurance that land development within the City will not be adversely affected by future governmental policies, including but not limited to, government policies to restrict or control development. Under current State law, it is generally accepted that proposed development is not exempt from future land use regnlations until building permits have been issued and substantial work has been performed and substantial liabilities have been incurred in good faith reliance on the permits prior to the adoption of such regnlations. Bankruptcy and Foreclosure On July 30, 1992 the United States Court of Appeals for the Ninth Circuit issued an opinion in a bankruptcy case entitled In re Glasply Marine Industries holding that ad valorem property taxes levied by a county in the State of Washington after the date that the property owner filed a petition for bankruptcy would not be entitled to priority over the claims of a secured creditor with a prior lien on the property. Similar results were reached by several circuit courts in other circuits. Subsequently, however, Section 362(b)( 18) of the Bankruptcy Code was enacted, effectively overturning this line of decisions and providing that local governments may rely on statutory property tax liens to secure payment of property taxes after the filing of a bankruptcy petition. County Payment of Tax Increment Revenues Pursuantto its administrative practice, the County provides the Agency with full tax and assessment levies instead of actual tax and assessment collections. Thus, the County's payments may help protect Owners of the 2006 Bonds from the risk of delinquencies in the payment of ad valorem taxes. However, if the County were to change such payment procedures, such a change with respect to the Agency would eliminate such protection from delinquent ad valorem taxes. See "SECURITY FOR THE 2006 BONDS - County Payments of Tax Increment Revenues." Seismic Factors and Flooding The occurrence of severe seismic activity and/or flooding in the Project Area could result in substantial damage to property located in the Project Area, and could lead to successful appeals for reduction of assessed values of such property. Such a reduction could result in a decrease in Tax Increment Revenue collected by the Agency. Portions of the Project Area are within the 100-year flood plain. The Project Area is located in an active seismic region. The Elsinore, San Jacinto, Wildomar and San Andreas Fault Zones are all in the vicinity of the City. The proximity to these faults makes the Project Area subject to the hazards associated with ground shaking and soil instability. Hazardous Substances An environmental condition that may result in the reduction in the assessed value of parcels would be the discovery of a hazardous substance that would limit the beneficial use of a property within the Project Area. In general, the owners and operators of a property may be required by law to remedy conditions of the property relating to releases or threatened releases of hazardous substances. The owner may be required to remedy a hazardous substance condition of property whether or not the owner or operator has anything to do with creating or handling the hazardous substance. The effect, therefore, should any of the property within the Project Area be affected by a hazardous substance would be to reduce the marketability and value of the property by the costs of remedying the condition. 24 School District Litigation The Santa Ana Unified School District (the "School District") filed litigation against the Orange County Development Agency (the "OCDA") regarding the application of provisions of the Redevelopment Lawto certain pass-through obligations of the OCDA to the School District. The School District argned to the trial court that it could electto receive its share of tax increment revenues from an OCDA redevelopment project area by means of certain filings made after the applicable project area had been formed. The OCDA argned that the applicable filings needed to be made before the redevelopment plan for the project area was adopted. The trial court ruled in favor of the School District and the Court of Appeals of the State of California affirmed the trial court decision. The California Supreme Court denied review of the decision. It is believed that this decision will have no effect on the Agency in that all school districts within the Project Area have entered into negotiated tax-sharing agreements with the Agency. No Acceleration on Default In the event of default under either Indenture, as a practical matter, Bond Owners will be limited to obtaining the moneys in the related Reserve Account and enforcing the obligation of the Agency to repay the 2006 Bond on an annual basis to the extent of the Tax Revenues. No real or personal property in the Project Area is pledged to secure the 2006 bonds and it is not anticipated that the Agency will have available moneys sufficient to redeem all of the 2006 Bonds in the even of an acceleration resulting from an event of default. Loss of Tax Exem plion In order to maintain the exclusion from gross income for federal income tax purposes of the interest on the 2006 Bonds, the Agency has covenanted in the Indentures to comply with each applicable requirement of the Internal Revenue Code of 1986, as amended. The interest on the 2006 Bonds could become includable in gross income for purposes of federal income taxation retroactive to the date of issuance of the 2006 Bonds, as a result of acts or omissions of the Agency in violation of covenants in either of the Indentures. Should such an event of taxability occur, the 2006 Bonds may not be subject to acceleration or redemption and no increase in interest rates will occur, and the 2006 Bonds will remain Outstanding until maturity or until redeemed under one of the redemption provisions contained in the Indentures. See "TAX MATTERS" herein. Assumptions and Projections Any reduction in Tax Increment Revenues, whether for any of the foregoing reasons or any other reason, could have an adverse effect on the Agency's ability to make timely payments of principal of, premium, if any, and interest on the 2006 Bonds, which are secured by such Tax Increment Revenues. To estimate the total Tax IncrementRevenues available to pay debt service on the 2006 Bonds, the Agency has made certain assumptions with regard to the assessed valuation in the Project Area and estimated increase in assessed valuation. See "COVERAGE ANALYSIS" for a discussion of the assumptions underlying the projections set forth herein with respect to Tax Increment Revenues. The Agency believes these assumptions to be reasonable, but to the extent that the assessed valuations and the change in assessed valuation differ from the Agency's assumptions, the total Tax Increment Revenues available will, in all likelihood, be different than those projected herein. See "COVERAGE ANALYSIS" herein. SPECIAL RISK CONSIDERATIONS SPECIFIC TO THE SERIES B BONDS In addition to the risks described under the heading "RISK FACTORS," 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 2002 Bonds and any Parity Debt. The Series B Bonds are not rated and are not insured by . For this reason, investments in the Series B Bonds involve a higher degree of risk and are not appropriate for all investors. Subordination of Series B Bonds; Issuance of additional Parity Debt 25 The Series B Bonds are subordinate to the Series A Bonds, 2002 Bonds and any Parity Debt issued in the future in right of payment. Tax Increment Revenues will be available to pay obligations on the Series B Bonds only after all payments and deposits in respect of the Series A Bonds, 2002 Bonds and any additional Parity Debt have been made as set forth herein and in the Indentures. In the event of delinquencies in the payment of ad valorem taxes which exceed the expected amount of debt service coverage from the Tax Increment Revenues, there may not be sufficient Tax Increment 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 marketexists, that the Series B Bonds 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 may make the secondary market, the financial condition and results of operations of the owners of property located within the boundaries of the Project Area, and the extent of the development of property within the Project Area. No Ratings of Series B Bonds The Series B Bonds are not rated by any rating agency, and the Agency does not presently intend to seek any rating of the Series B Bonds nor does the Agency anticipate that the Series B Bonds would qualify for an investment grade rating due to the structure and size of the Series A Bonds and the 2002 Bonds. No Insurance The Insurance Policy does not apply to the Series B Bonds. LIMITATIONS ON TAX INCREMENT REVENUES Property Tax Collection Procedure In California, property which is subject to advalorem taxes is classified as "secured" or "unsecured." The secured classification includes property on which any property tax levied by the County becomes a lien on that property. A tax levied on unsecured property does not become a lien against the unsecured property, but may become a lien on certain other property owned by the taxpayer. Every tax which becomes a lien on secured property has priority over all other liens on the secured property, regardless of the time of the creation of other private liens. Secured and unsecured property are entered on separate parts of the assessment roll maintained by the county assessor. The method of collecting delinquent taxes is substantially different for the two classifications of property. The taxing authority has four ways of collecting unsecured personal property taxes: (1) a civil action against the taxpayer; (2) filing a certificate in the office of the county clerk specifying certain facts in order to obtain a judgment lien on certain property of the taxpayer; (3) filing a certificate of delinquency for record in the county recorder's office, in order to obtain a lien on certain property of the taxpayer; and (4) seizure and sale of the personal property, improvement or possessory interests belonging or assessed to the assessee. The exclusive means of enforcing the payment of delinquent taxes with respect to property on the secured roll is the sale of property securing the taxes to the State for the amount of taxes which are delinquent. A 10 percent penalty is added to delinquent taxes which have been levied with respect to property on the secured roll. In addition, on or about June 30 of the fiscal year, property on the secured roll on which taxes are delinquent is declared in default by operation of law and declaration of the tax collector. Such property may thereafter be redeemed by payment of the delinquent taxes and a delinquency penalty, plus a 26 redemption penalty of 1-1/2 percent per month to the time of redemption. If taxes are unpaid for a period of five years or more, the property is subject to sale by the County tax collector. The valuation of property is determined as of the January 1 lien date as equalized in Augnst of each year and equal installments of taxes levied upon secured property become delinquent on the following December 10 and April 10. Taxes on unsecured property are due January 1 and become delinquent Augnst 31. Supplemental Assessments A bill enacted in 1983, SB 813 (Statutes of 1983, Chapter 498), provides for the supplemental assessment and taxation of property upon the occurrence of a change in ownership or completion of new construction. Previously, statutes enabled the assessment of such changes only as of the next January 1 tax lien date following the change and thus delayed the realization of increased property taxes from the new assessments for up to 14 months. As enacted, Chapter 498 provides increased revenue to redevelopment agencies to the extent that supplemental assessments of new construction or changes of ownership occur within the boundaries of redevelopment projects subsequent to the January 1 lien date. To the extent such supplemental assessments occur within the Project Area, Agency revenues may increase. Tax Collector Fees SB 2557 (Statutes of 1990, Chapter 466) authorizes county auditors to determine property tax administration costs proportionately attributable to local jurisdictions and to submit invoices to the jurisdictions for such costs. An estimated amount of such costs have been excluded in determining the Tax Increment Revenues which are pledged to repay the 2006 Bonds. Unitary Property AB 454 (Statutes of 1987, Chapter 921) modifies the distribution of tax revenues derived from property assessed by the State Board of Equalization. Chapter 921 provides for the consolidation of all State- assessed property, except for non-operating, non-unitary and regnlated railroad property, into a single tax rate area in each county. Chapter 921 further provides for a new method of establishing tax rates on State- assessed property and distribution of property tax revenues derived from State-assessed property to taxing jurisdictions within each county in accordance with a new formula. Railroads will continue to be assessed and revenues allocated to all tax rate areas where railroad property is sited. Chapter 921 provides redevelopment agencies with their appropriate share of revenue generated from the property assessed by the State Board of Equalization. Property Tax Rate Limitations - Article XIIIA California voters, on June 6, 1978, approved an amendment (commonly known as Proposition 13) to the State Constitution. This amendment, which added Article XIIIA to the State Constitution, among other things affects the valuation of real property for the purpose of taxation in that it defines the full cash property value to mean "the county assessor's valuation of real property as shown on the 1975-76 tax bill under 'full cash value,' or thereafter, the appraised value of real property when purchased, newly constructed, or a change in ownership has occurred after the 1975 assessment." The full cash value may be adjusted annually to reflect inflation at a rate not to exceed two percent (2%) per year, a reduction in the consumer price index or comparable local data, or declining property value caused by damage, destruction or other factors including a general economic downturn. The amendment further limits the amount of any ad valorem tax on real property to one percent (1 %) of the full cash value except that additional taxes may be levied to pay debt service on indebtedness approved by the voters prior to July 1, 1978, and bonded indebtedness for the acquisition or improvement of real property approved on or after July 1, 1978 by two-thirds of the votes cast by the voters voting on the proposition. In the general election held November 4, 1986, voters of the State of California approved two measures, Propositions 58 and60, which further amend Article XIIIA Proposition 58 amends Article XIIIA to provide that the terms "purchased" and "change of ownership," forpurposes of determining full cash value of property under Article XIIIA, do not include the purchase or transfer of (1) real property between spouses and (2) the principal residence and the first $1,000,000 of other property between parents and children. 27 Proposition 60 amends Article XIIIA to permit the State Legislature to allow persons over age 55 who sell their residence to buy or build another of equal or lesser value within two years in the same county, to transfer the old residence's assessed value to the new residence. Pursuant to Proposition 60, the State Legislature has enacted legislation permitting counties to implement the provisions of Proposition 60. Challenges to Article XllIA. On September 22, 1978, the California Supreme Court upheld the amendment over challenges on several state and federal constitutional grounds (Amador Valley Joint Union High School District v. State Board of Equalization). The California Supreme Court reserved certain constitutional issues and the validity of legislation implementing the amendment for future determination in proper cases. Since 1978, several cases have been decided interpreting various provisions of Article XIIIA; however, none of them have questioned the ability of redevelopment agencies to use tax allocation financing. The United States Supreme Court upheld the validity of the assessment procedures of Article XIIIA in Nordlinger v. Hahn. The Agency cannot predict whether there will be any future challenges to California's present system of property tax assessment and cannot evaluate the ultimate effect on the Agency's receipt of Tax Increment Revenues should a future decision hold unconstitutional the method of assessing property. Implementing Legislation. Legislation enacted by the State Legislature to implement Article XIIIA provides that all taxable property is shown at full assessed value as described above. In conformity with this procedure, all taxable property value included in this Official Statement (except as noted) is shown at 100 percent of assessed value and all general tax rates reflect the $1 per $100 of taxable value. Tax rates for voter approved bonded indebtedness and pension liability are also applied to 100 percent of assessed value. Future assessed valuation growth allowed under Article XIIIA (new construction, change of ownership, two percent (2%) annual value growth) will be allocated on the basis of "situs" among the jurisdictions that serve the tax rate area within which the growth occurs, except for certain utility property assessed by the State Board of Equalization. Local agencies and school districts will share the growth of "base" revenue from the tax rate area. Each year's growth allocation becomes part of each agency's allocation the following year. The Agency is unable to predict the nature or magnitude of future revenue sources which may be provided by the State of California to replace lost property tax revenues. Article XIIIA effectively prohibits the levying of any other ad valorem property tax above the one percent (1%) limit except for taxes to support indebtedness approved by the voters as described above. Article XIIIB of the California Constitution On November 6, 1979, California voters approved Proposition 4 which added Article XIIIB to the State Constitution, subsequently amended several times. The principal effect of Article XIIIB is to limit the annual appropriations of the State and any city, county, school district, authority or other political subdivision of the State to the level of appropriations for the prior fiscal year, as adjusted for changes in the cost of living, population and services rendered by the government entity. The base years for establishing such appropriation limit is Fiscal Year 1986-87 and the limit is to be adjusted annually to reflect changes in population, cost of living and certain increases in the cost of services provided by these public agencies. Appropriations subject to Article XIIIB include generally the proceeds of taxes levied by the State or other entity oflocal government, exclusive of certain State subventions, refunds of taxes, benefit payments from retirement, unemployment insurance and disability insurance funds. Effective September 30, 1980, the California Legislature added Section 33678 to the Health and Safety Code which provides that the allocation of taxes to a redevelopment agency for the purpose of paying principal of, or interest on, loans, advances, or indebtedness will not be deemed the receipt by the agency of proceeds of taxes levied by or on behalfofthe agency within the meaning of Article XIIIB or any statutory provision enacted in implementation thereof. The constitutionality of Section 33678 has been upheld by the Second and FourthDistrict Court of Appeals in two decisions: Bell RedevelopmentAgency v. Wooselyand Brown v. RedevelopmentAgency of the City ofSantaAna, which cases were not accepted for review by the California Supreme Court. 28 Pass- Through Agreements; Other Contractual Obligations P ass- Through Agreements. Pursuant to Section 3340 l(b) of the Redevelopment Law (as in effect prior to January 1, 1994), a redevelopment agency was authorized to enter into an agreement to pay tax increment revenues to any taxing agency that has territory located within a redevelopment project in an amount which in the agency's determination is appropriate to alleviate any financial burden or detriment caused by the redevelopment project. These agreements normally provide for a pass-through of tax increment revenue directly to the affected taxing agency, and, therefore, are commonly referred to as "pass- through" or "fiscal" agreements. As discussed earlier, the County originally adopted the Project Area. At the time of adoption, the County entered into a number of pass-through agreements (collectively, the "Pass-Through Agreements"). Ail of these agreements with school districts called for the districts to receive 29.62 percent of their shares of general levy tax increment revenue. Ail non-school district Pass-Through Agreements called for the taxing entities to receive 100 percent of their general levy tax increment revenue. These Pass-Through Agreements became obligations of the Agency at the time that the Project Area was adopted by the Agency. These agreements have a lien on Tax Increment Revenues that is superior to the lien for debt service on the Bonds. The agreements are summarized in the table below: Taxing Entity County of Riverside County Library Department County Structural Fire Department Temecula Public Cemetery District Eastern Municipal Water District Riverside County Flood Control District Rancho California Water District Temecula Valley Unified School District Mt. San Jacinto Community College District Riverside County Supt. of Schools(2) 1% Share 18.12% 2.18% 4.70% 0.40% 10.05% 1.76% 5.92% 31.61% 3.60% 10.53% Pass-Through Share(l) 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 29.62% 29.62% 29.62% (1) The Pass-ThroughAgreernentwith the COlmtyofRiverside, the COlmty Library Department andCollllty Structural Fire Department are made from general levy revenues net of SB 2557 COlmty Administrative charges. At the time the Agency adopted the Project Area Redevelopment Plan, it entered into an agreement with the County on May 21, 1991. This agreement called for tax-sharing payments to be made to the County General Fund, the County Structural Fire Department and the County Library Department. It also provided for a partial deferral of the payments to the County General Fund. The Agency and the County entered into an amended and restated County Pass-Through Agreement dated January 2, 2002. The new agreement calls for the Agency to make tax-sharing payments to the County General Fund, Structural Fire Department and Library Department from general levy tax increment revenues net of the SB 2557 Administrative Fee. The General Fund share is 18.12 percent, the County Structural Fire Department share is 4.70 percent and the County Library Department share is 2.18 percent. In addition to the tax-sharing payments, the agreement specified that the Agency pay the County a total of $6 million from the proceeds of the Agency's 2002 Bonds as repayment of the County tax-sharing payments deferred under the May 21, 1991 agreement. The $6 million was paid to the County in July 2002. The Agency further agreed to contribute $5 million toward the acquisition of right-of-way for a project referred to as the Date/Cherry Interchange. According to the Agency, funding for this agreement was provided from sources other than Tax Increment Revenues and other than proceeds of the 2002 Bonds. Under the County Pass-Through Agreement, the Auditor Controller is responsible for calculating the amount of the tax-sharing payments and allocating these payments to the various taxing entities. The 29 County Pass-Through Agreement does not provide for subordination of the tax-sharing payments to the County, Structural Fire Department or Library Department to debt service on the 2006 Bonds. To the extent that the Tax Increment Revenues remaining after satisfaction of the Agency's obligations under the Pass- ThroughAgreements described above are not sufficient topaythe scheduleddebt service on the 2006 Bonds, there could be a default in the payment of debt service on the 2006 Bonds. Owner P articipationAgreements. The Agency has entered into two Owner Participation Agreements that call for payments to be made to the Owner Participants. The first agreement between the Agency and International Rectifier Corporation ("International Rectifier"), was entered into on December 9, 1997 and amended on December 15, 1998. Pursuant to the agreement, the Agency notified International Rectifier on April23, 2002, that the agreement was terminated. International Rectifier never satisfied the requirements of the agreement and no payments were ever made by the Agency pursuant to the agreement. The second agreement between the Agency and Advanced Cardiovascular Systems, Inc. (the "Participant") was entered into on February 12, 2002. Under the terms of this agreement, the Participant agrees to add not less than 90,000 square feet of gross building area to its present facilities and to add not less than 150new full time jobs. The Participant further agrees to add another 150 new full time jobs within five years of the issuance of the certificate of occupancy on the Phase I improvements. The Participant also agrees that within five years of the issuance of a certificate of occupancyfo thePhase I improvements, it will receive a certificate of occupancy for at least 90,0000 additional square feet of building area. AIternatively, the agreement specifies that the Participant may increase the size of the Phase I improvements to at least 135,000 and the requirement of a second phase of improvements will be deemed satisfied. Upon completion of the prerequisites set forth in the agreement, the Agency agrees to remit to the Participant50% of the net tax increment revenue derived from the increase in assessed value that results from development of Phases I and II. Net tax increment is defined in the agreement as being the total tax increment received by the Agency less 20% for housing set-aside and amounts required by existing tax sharing agreements. The office and manufacturing buildings of Phase I are not yet under construction but construction of a three story parking garage has been started. At this juncture, no one can predict the amount of tax revenue that may be produced by these improvements or determine when that tax revenue may be realized. The Agency and the Fiscal Consultant are further unable to determine when or if the Participant will achieve the conditions required prior to receiving payments from the Agency. Only the estimated value of the parking structure has been factored into the projection of tax revenues by the Fiscal Consultant. The estimated value of this parking structure is $29.13 million and this value is projected to be added to the tax rolls in 2008-09. The Agency will pay an amount equal to 50% of certain tax increment revenues received by the Agency. The Agreement makes no pledge of any funds of the Agency or the City, and in particular there is no pledge of Tax Increment Revenues or pledge of the City's general fund. The payments made by the Agency pursuant to the agreement will, therefore, be subordinate to the pledge of tax revenues to payment of debt service on the Bonds. The scope of the development is such that these improvements may cause the Project Area to reach its tax increment limit earlier than anticipated in the projection. Exclusion of Tax Increment Revenues for General Obligation Bonds Debt Service An initiative to amend the California Constitution entitled "Property Tax Increment Revenues Redevelopment Agencies" was approved by California voters at the November 8, 1988 general election. Under prior law, a redevelopment agency using tax increment revenue received additional property tax revenue whenever a local government increased its property tax rate to payoff its general obligation bonds. This initiative amended the California Constitution to allow the California Legislature to prohibit redevelopment agencies from receiving any of the property tax revenues raised by increased property tax rates imposed by local governments to make payments on their bonded indebtedness. The initiative only applies to tax rates levied to finance general obligation bonds approved by the voters on or after January 1, 1989. Any revenue reduction to redevelopment agencies would depend on the number and value of the general obligation bonds approved by voters in prior years, which tax rate will reduce due to increased valuation subject to the tax or the retirement of the indebtedness. 30 Proposition 218 On November 5, 1996, California voters approved Proposition 218 - Voter Approval for Local Government Taxes - Limitation on Fees, Assessments, and Charges -Initiative Constitutional Amendment. Proposition 218 added Articles xmc and xmD to the California Constitution, imposing certain vote requirements and other limitations on the imposition of new or increased taxes, assessments and property- related fees and charges. Tax Increment Revenues securing the Bonds are derived from property taxes which are outside the scope of taxes, assessments and property-related fees and charges which were limited by Proposition 218. Future Initiatives or Legislation Article XIIIA, Article XIIIB and certain other propositions affecting property tax levies were each adopted as measures which qualified for the ballot pursuant to California's initiative process and legislation described above was adopted by the California Legislature. From time to time other initiative measures or legislation could be adopted, further affecting Agency revenues or the Agency's ability to expend revenues. The nature and impact of these measures cannot be anticipated by the Agency. Low and Moderate Income Housing Chapter 1337, Statutes of 1976, added Sections 33334.2 and 33334.3 to the Redevelopment Law requiring redevelopment agencies to set-aside 20 percent of all tax increment derived from redevelopment project areas adopted after December 31, 1976 in a low and moderate income housing fund. This low and moderate income housing requirement could be reduced or eliminated if a redevelopment agency finds that: (a) no need exists in the community to improve or increase the supply of low and moderate income housing; (b) that some stated percentage less than 20 percent of the tax increment is sufficient to meet the housing need; and (c) any increase in revenue above two percent would be allocated in the same proportion as the taxing entity's local secured taxable values are to the local secured taxable values of the County (the low and moderate income housing requirement may not be reduced pursuant to finding in this third clause after June 30, 1993). The Agency has historically, and intends to, annually set aside in its low and moderate income housing fund 20 percent of the gross tax increment revenues allocated to the Agency with respect to the Project Area. The Tax Increment Revenues do not include tax increment set aside pursuant to the Agency's 20 percent low and moderate income housing set aside requirement. Redevelopment Plan Limitations The amended Redevelopment Plan contains various limitations on the Agency's ability to incur indebtedness and to receive tax increment revenues. Pursuant to the Agency's Senate Bill 1096 Amendment, the plan termination date is July 12, 2029 and the debt repayment date is July 12, 2039. The date of the existing limit to incur debt is July 12, 2008. In addition, the City is a party to the 1991 Settlement Agreement (as defined below) which imposes additional limitations on the Agency's ability to incur indebtedness and to receive tax increment revenues. See "THE REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA - Agency Powers" and" - Limitations Under 1991 Settlement Agreement" below. Senate Bill 211 was signed into law as of Chapter 741, Statutes of 2001. This legislation has two main impacts on the limits contained in an agency's redevelopment plan. First, a city council may amend the redevelopment plan to eliminate the time limit to establish indebtedness in project areas adopted prior to January 1, 1994 by ordinance. lfthe plan is so amended, existing tax sharing agreements will continue and certain statutory tax sharing for entities without tax sharing agreements will commence in the year the eliminated limit would have taken effect. Second, a city council may extend the time limit for plan effectiveness and repayment of debt for up to ten years if its can make certain specified findings. The Agency is considering an amendment to eliminate or extend the time limit for establishment of indebtedness but no decision has been made as yet. 31 THE REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA Agency Members On July 12, 1988, the County, prior to the incorporation of the City, adopted the "County of Riverside Redevelopment Plan 1 - 1988" by Ordinance No. 658. On December 1, 1989 the City was incorporated. Ail of the area within the County Redevelopment Plan was included within the boundaries of the City. The Agency was established on April 27, 1991, by the City Council with the adoption of Ordinance No. 91-08 pursuant to the Redevelopment Law. The five members of the City Council serve as the governing body of the Agency, and exercise all rights, powers, duties and privileges of the Agency. The persons holding the positions of Chairperson and Vice Chairperson is subject to change each year. The members of the governing body of the Agency are as follows: [UPDATE BEFORE PRINTING] Member Michael S. Naggar, Chairperson Maryann Edwards, Vice Chairperson Ron Roberts, Board Member Charles W. Washington, Board Member JeffComerchero, Board Member Agency Administration The Agency is administered by certain staff of the City. The City is a general law city and operates according to the CounciVManagerform of government. The City Manager is appointed by the City Council to administer the City's staff and generally implement policies established by the City Council. Current City staff assigned to administer the Agency include Shawn Nelson, City Manager of the City and Executive Director of the Agency, Genie Roberts, Finance Director of the City and Treasurer of the Agency, John Meyer, Redevelopment Director for the Agency, and Susan Jones, City Clerk and Secretary to the Agency. The Agency has an arrangement with the City for financial assistance and services, facilities and personnel support. As moneys become available, the Agency reimburses the City for all such services performed in amounts equal to a portion of the gross salary and employee fringe benefits for certain City employees utilized by the Agency plus other miscellaneous operating and equipment costs. The Redevelopment Law requires redevelopment agencies to have an independent financial audit conducted each year. The financial audit is also required to include an opinion of the Agency's compliance with laws, regnlations and administrative requirements governing activities of the Agency. Diehl Evans & Company, LLP, Irvine, California, audited the financial statements of the Agency for the fiscal year that ended June 30,2006, and rendered its financial opinion and compliance opinion with respect thereto, which are included in Appendix C attached hereto. The Agency has not requested nor did the Agency obtain permission from Diehl Evans & Company, LLP, to include the audited financial statements as an appendix to this Official Statement. Accordingly, Diehl Evans & Company, LLP, has not performed any post-audit review of the financial condition or operations of the Agency. Agency Powers Ail powers of the Agency are vested in its governing body. Pursuant to the Redevelopment Law, the Agency may exercise broad governmental functions and authority to accomplish its purposes, including, butnot limited to, the right of eminent domain, the rightto issue bonds for authorized purposes and to expend their proceeds, and the right to acquire, sell, rehabilitate, develop, administer or lease property. The Agency 32 may demolish buildings, clear land and cause to be constructed certain improvements, including streets, sidewalks, and utilities. The Agency may not construct or develop buildings, with the exception of public facilities and housing, but must sell or lease cleared property for construction and development in accordance with the Redevelopment Plan. Limitations Under 1991 Settlement Agreement Pursuant to a Settlement Agreement (the "1991 Settlement Agreement") entered on June 5, 1991, in the Superior Court of the State of Californiafor the County, the Agency and the City, as amended in 1995, various additional limitations are placed on the Redevelopment Plan, including that subject to certain exceptions, no more than $150 million of tax increment revenues shall be allotted or paid to the Agency during the term of the Redevelopment Plan (excluding the Housing Set-Aside amounts and certain other amounts). Based on Agency records, the Agency has received approximately $117,962,928 of Tax Increment Revenues from its inception through 2005-06. The amount of revenue that is applicable to the 1991 Settlement Agreement limitation is approximately $18,762,775. Based on the projection and taking into accountthe interest costs of the 2002 Bonds and the projected interest costs of the 2006 Bonds, the Project Area tax increment limit will not be exceeded prior to the expiration of the Project Area's ability to repay indebtedness. If the rate of growth in assessed value exceeds 2.5 percent per year, however, the tax increment limit will be exceeded before the last date to repay indebtedness. If the Agency determines to issue additional bonded debt in the future exceeding the tax increment limit may be significantly delayed. The Project Area's average annual growth in assessed value over the past 10 years had been 8.62 percent. If the Project Area's assessed value continues to grow at this same rate, the tax increment limit will be reached in Fiscal Year 2024-25. lfthe assessed value grows by an average annual rate of 5 percent the tax increment limit will be reached by Fiscal Year 2030-31. The Agency has covenanted to annually engage an Independent Redevelopment Consultant (as defined in the Indentures) to calculate the total amount of Tax Increment Revenues remaining available to be received by the Agency under the Plan Limitations, as well as future cumulative annual debt service requirements for the Senior Obligations (as defined in the Series B Indenture) and for the Series B Bonds. If any such calculation determines that the Tax Increment Revenues remaining available to the Agency under the Plan Limitations after deductions for all amounts to be paid to satisfy all obligations owing on the Senior Obligations, will equal one hundred ten percent (110%) or less of the then unpaid principal of the Series B Bonds, the Agency shall deposit in escrow all Tax Increment Revenues thereafter received by the Agency not needed for purposes of the Senior Indenture to be used for future debt service on, or to redeem or defease the Series B Bonds and any Additional Subordinate Debt. If Parity Debt or Additional Subordinate Debt is issued, amounts relating to interest on such Parity Debt or Additional Subordinate Debt and amounts relating to housing set-aside portion are not included in the 1991 Settlement Agreement limitation. See "THE REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA - Agency Powers." Outstanding Indebtedness of the Agency Certification of Agencv Indebtedness. Pursuant to Section 33675 of the Redevelopment Law, on or before October 1 of each year an agency must file with the county auditor a statement of indebtedness certified by the chief fiscal officer of the agency for each redevelopment project that receives tax increment. The statement of indebtedness is required to contain the date on which any bonds were delivered, the principal amount, term, purpose and interest rate of bonds and the outstanding balance and amount due on bonds. Similar information must be given for each loan, advance or indebtedness that the agency has incurred or entered into to be payable from tax increment. The Agency has complied with the requirements of Section 33675 each year since its effective date. Section 33675 also provides that the county auditor is limited in payment of tax increment to the agency to the amounts shown on the agency's statement of indebtedness. The section further provides that the statement of indebtedness is prima facie evidence of the indebtedness of the agency, but that the county auditor may dispute the amount of indebtedness shown on the statement in certain cases. Provision is made for time limits under which the dispute can be made by the county auditor as well as provisions for determination by the Superior Court in a declaratory relief action of the proper disposition of the matter. The issue in any such action must involve only the amount of the indebtedness and not the validity of any contract or debt instrument, or any expenditures pursuant thereto. An exception is made for payments to a public 33 agency in connection with payments by such public agency pursuant to a bond issue which shall not be disputed in any action under Section 33675. Outstandinr Indehtedness The Agency issued $2,427,500 of Multifamily Housing Revenue Bonds on April 25, 1996. The proceeds of the issuance were loaned to the Coachella Valley Housing Coalition (the "Housing Coalition"), a California non-profit public benefit corporation, to enable the Housing Coalition to acquire and rehabilitate a 150-unit multi-family housing rental apartment development located in the City. As of September 15, 2006, $1,604,500 of the Multifamily Housing Revenue Bonds remained outstanding. This obligation is payable from amounts paid by the Housing Coalition and is not payable from Tax Increment Revenues. On July 17, 1998, the Agency borrowed $5,800,000 from Washington Mutual Bank, F.A The proceeds were loaned to Temecula Gardens LP (the "Temecula Gardens''), a California limited partnership, to assist Temecula Gardens in the acquisition of land and the acquisition and rehabilitation of an existing multi-family housing rental project. As of September 15, 2006, the outstanding loan balance was $5,332,897.84. The loan is not a general obligation of the Agency, and the City will in no way be responsible for the repayment of the loan. This obligation is payable from amounts paid by Temecula Gardens and is not payable from Tax Increment Revenues. Obligation to the City. In the first quarter of 1996, the City conveyed certain real property to the Agency for use on a redevelopment project in exchange for a promissory note in the amount of $918,171. As of September 15, 2006, the outstanding amount of the note is $1,672,558. Pass-Through A!!feements and OwnerParticioation A!!feements. See "LIMITATIONS ON TAX INCREMENT REVENUES - Pass-Through Agreements; Other Contractual Obligations" herein for a description of the County Agreement and Other Pass-Through Agreements. The Agency is obligated under such pass-through obligations and an owner participation agreement to contribute certain property tax increment revenues otherwise allocable to the Agency in the amounts and for the purposes set forth in those agreements or Redevelopment Law, as applicable. Property tax increments arising in the Project Area required for payments by the Agency under certain of these agreements are not "Tax Increment Revenues" for purposes of the Indentures, and are not available to pay debt service on the Bonds. Investment of Agency Funds The Agencymay invest moneys not immediately required for operations in a manner consistent with the City's investment policy (the "Investment Policy"). For a description of the types of investments in which the Agency may invest, see "APPENDIX C - REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA ANNUAL FINANCIAL AND COMPLIANCE REPORT FOR FISCAL YEAR ENDING JUNE 30, 2006," Note 2. Controls, Land Use and Building Restrictions Ail real property in the ProjectArea is subject to the controls and restrictions of the Redevelopment Plan. The Redevelopment Plan provides that all new construction in the Project Area shall comply with all applicable State and local laws in effect, including the various codes of the City. The Redevelopment Plan specifies particular land use areas. The Agency may permit an existing but nonconforming use to continue so long as the Agency determines that the use is generally compatible with other surrounding development uses. Within the limits, restrictions and controls established in the Redevelopment Plan, the Agency is authorized to limit the number, type, size and height of buildings in the Project Area, and to establish design criteria, traffic circulation, traffic access and other development and design controls necessary for property development within the Project Area. Under exceptional circumstances, the Agency is authorized to permit minor variations from the limits, restrictions, and controls established by the Redevelopment Plan. However, no variation shall be granted which changes a basic land use or which permits substantial departures from the Redevelopment Plan's provisions. In permitting a variation, the Agency must impose such conditions as are necessary to 34 protect the public health, safety or welfare and to assure compliance with the objectives of the Redevelopment Plan. 35 [INSERT COLOR MAP OF THE PROJECT AREA HERE] 36 THE REDEVELOPMENT PLAN Under the Redevelopment Law every redevelopment agency is required to adopt, by ordinance, a redevelopment plan for each redevelopment project. A redevelopment plan is a legal document, the content of which is largely prescribed in the Redevelopment Law rather than a "plan" in the customary sense of the word. The City Council of the City adopted Ordinance No. 91-11 on May 9, 1991, and Ordinance No. 91-15 on April 9, 1991, approving the County Redevelopment Plan as the TemeculaRedevelopmentPlan No.1 (defined above as the "Redevelopment Plan") and transferring jurisdiction over the Redevelopment Plan to the Agency. This transfer was effective July 1, 1991. The Temecula Redevelopment Project No.1, the area encompassed by the Redevelopment Plan (the "Project Area"), is primarily commercial and industrial in nature. It is generally located along Interstate 15 from the City's northern border with the City of Murrieta to the intersection of Highway 79 on the south. The Project Area encompasses approximately 1,635 acres. The Project Area includes the Promenade Mall site, Old Town and industrial and business park areas west of the freeway The Redevelopment Plan for the Project Area was adopted prior to January 1, 1994. Chapter 942 specifies that a time limit on establishment of new debt be incorporated into the Redevelopment Plan and that time limit shall be twenty years from the adoption of the Redevelopment Plan or January 1, 2004, whichever is later. The Redevelopment Plan was amended on December 20, 1994. Pursuant to the amended Redevelopment Plan, the Agency cannot establish new debt after July 12, 2008 that is twenty years after the adoption of the Redevelopment Plan. In accordance with the amended Redevelopment Plan, taxes as defined in Section 33670 of the Redevelopment Law shall not be divided and shall not be allocated to the Agency in excess of$1.11 billion except by amendment of the Redevelopment Plan. Pursuant to the 1991 Settlement Agreement as amended in 1995, various additional limitations are placed on the Redevelopment Plan, including that subject to certain exceptions, no more than $150 million of tax increment revenues shall be allotted or paid to the Agency during the term of the Plan (excluding the HousingSet-Aside amounts and certain other amounts). See "THE REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA - Limitations Under 1991 Settlement Agreement." As amended by Ordinance No. 94-33, the Redevelopment Plan restricts the amount of bonded indebtedness that may be outstanding at anyone time. The Agency may issue bonds and! or notes for any of its authorized purposes. These bonds and/or notes may be secured with a pledge of tax increment revenues. The total outstanding principal of any bonds so issued and repayable from tax increment revenues shall not exceed $340 million at anyone time, except by amendment of the Redevelopment Plan. As amended by Ordinance No. 06-11, adopted on September 26,2006, the amended Redevelopment Plan specifies that except for the non-discrimination and non-segregation provisions that continue in perpetuity, the effectiveness of the Redevelopment Plan shall expire on July 12,2029, that is forty-one years from the adoption of the Redevelopment Plan. After expiration of the effectiveness of the Redevelopment Plan, the Agency shall have no authority to act pursuant to the Redevelopment Plan except to pay previously incurred indebtedness and to enforce existing covenants, contracts and other obligations. The Agency may not receive additional tax increment revenue or pay indebtedness after July 12, 2039, except for such purposes as specifically permitted under the Redevelopment Law. Description of the Project Area The Project Area includes approximately 1,635 acres of land primarily located west ofInterstate 15 and partially straddling Interstate 15 along Winchester and Y nez Roads. The Project Area includes the Old Town area of the City along Front Street. Proceeds of the Bonds Proceeds from the sale of the 2006 Bonds will be used to (i) finance redevelopment activities within or of benefit to the Project Area; (ii) to establish a Senior Subaccount within the Reserve Account for the Series 37 A Bonds all or a portion of which may be funded by the Series A Debt Service Reserve Surety Bond in satisfaction of the Reserve Requirement for the Series A Bonds, (iii) establish a Subordinate Subaccount within the Reserve Account for the Series B Bonds in satisfaction of the Reserve Requirement for the Series B Bonds, and (iv) provide for the costs of issuing the 2006 Bonds, including the premium for the financial gnaranty insurance policy and the Series A Debt Service Reserve Surety Bond. See "ESTIMATED SOURCES AND USES OF FUNDS" herein. Land Uses Land use in the Project Area includes residential, commercial, industrial, recreational, institutional, government and exempt uses. The following table represents the breakdown of land use in the Project Area by the number of parcels and by assessed value for Fiscal Year 2006-07. See "APPENDIX B - FISCAL CONSULTANT'S REPORT." TABLE 1 TEMECULA REDEVELOPMENT PROJECT NO.1 LAND USE(l) Category No. Parcels(2) Assessed Value(3) % of Total Residential 158 $47,178,613 2.64% Commercial 347 817,921,077 45.69% Industrial 228 579,381,900 32.37% Recreational 2 1,841,213 0.10% Institutional 8 24,199,972 1.35% Government 3 350,926 0.02% Exempt 114 0 0.00% Vacant Land 180 88,633,987 4.95% Possessory Interest [14] 1,353,698 0.08% Unsecured r16271 229 150 884 12.80% Totals: 1,040 $1,790,012,270 100.00% (1) The category values and parcel counts are based on the use codes assigned by the County to parcels on the lien date tax rolL (2) The numbers in brackets reflectthe number of property tax bills that are associated with these categories and not the number of parcels to which these bills are connected. (3) The lien date values reported by the Auditor-Controller do not include tax roll adjustments that have occurred after the lien date. Development in the Project Area The Redevelopment Plan provides for redevelopment within the Project Area. The Agency has identified 41 projects that are currently under construction or have been recently completed and are not yet reflected on the tax rolls. It is estimated that these projects will produce approximately $57,280,000 in new assessed value over the next two fiscal years with the majority of this new value coming onto the tax rolls for 2008-09. These new developments include hotels, office, retail and commercial buildings. For a list of these new developments and the timing of their completion, see "APPENDIX B - FISCAL CONSULTANT'S REPORT." In addition to the development listed above, there have been ten transfers of ownership that have occurred after the January 1, 2006 lien date for the current fiscal year. These transfers have resulted in an increase in value of $7,222,000 on the properties transferred. 38 Assessed Valuation The ProjectArea's aggregate base year assessed adjusted valuation is $365,093,279. The following table shows the actual assessed values for Fiscal Years 2002-03 to 2005-06 based upon the County Auditor/Controller's equalized rolls and incremental values of property within the Project Area. TABLE 2 TEMECULA REDEVELOPMENT PROJECT NO.1 HISTORICAL VALUES Fiscal Year Base Year Secured(1) 1987-88 2002-03 2003-04 2004-05 2005-06 2006-07 Land $167,283,021 $334,703,867 $350,202,514 $370,266,437 $ 392.162.253 $ 426,934,738 Improvements 184,324,369 771,355,803 853,885,242 915,533,565 1,011,701,868 1,068,599,164 Personal Property 11,212,042 127,405,428 116,124,997 116,851,303 86,281,976 77,283,761 Exemptions (235 673) (8981781) (ll 424 324) (10113833) (9398918) (11 9562771 Total Secured $362583759 $1224483317 $1 308788429 $1392 537 472 $1 480747 179 $1560861386 Unsecured Land $ 2,211 $ 439,711 $ 396,014 $ 350,114 $ 239,344 $ 211,036 Improvements 324,497 92,068,573 90,251,575 100,100,389 87,929,361 95,845,756 Personal Property 2,225,879 101,526,177 109,944,190 125,589,549 126,621,907 133,245,303 Exemptions (41 0(7) (')11 ')9) nR lR4) (1') lmn no 41')) (] ')1 ) 1]) Total Unsecured $7 ,09 ,70 $19, nl ,07 $700 ,)1 ,9, $770004944 $714708197 $779 1,0884 Grand T alai $365,093,279 $1,418,464,619 $1,509,341,824 $1,618,542,416 $1,695,455,376 $1,790,012,270 Incremental Value: $1,053,371,340 $1,144,248,545 $1,253,449,137 $1,330,362,097 $1,424,918,991 % Annual Change: 8.13% 8.63% 9.54% 6.14% 7.11% OJ Secured values include state assessed non-unitary utility property. Source: Fiscal Consultant's Report/County afRiverside. The Fiscal Consultant reviewed historic reported taxable values for the Project Area in order to ascertain the rate of taxable property valuation growth over the most recent ten fiscal years beginning with 1996-97. Their review revealed that the County had mistakenly included a new tax rate area in the Project Area in 1998-99. This new tax rate area included a total of 29 parcels with a combined value of$3, 719,599. The review also revealed that for 2001-02, the County included two new tax rate areas in the Agency's assessed values. The projections set forth in "COVERAGE ANALYSIS" below have been adjusted to eliminate the incorrectly included tax rate areas. See "APPENDIX B - FISCAL CONSULTANT'S REPORT - III. Project Area Assessed Values - A Assessed Values." 39 The following table shows theten largest contributors to the Tax Increment Revenues in the Project Area. TABLE 3 TEMECULA REDEVELOPMENT PROJECT NO.1 TOP TEN TAXABLE PROPERTY OWNERS FISCAL YEAR 2006-07 Project Area Incremental Value $1,424,918,991 Project Area Total Value $1,790,012,270 % Total Project % Total Property Owner Type of Business Total Value Area Value Inc. Value Advanced Cardiovascular Systems Medical appliances mfg. $176,784,644 9.88% 12.41% Ine.(1) International Rectifiet2) Electronic mfg. 109,180,230 6.10% 7.66% T ernecula Town Center Associates Regional shopping center 95,807,765 5.35% 6.72% Inland Western T ernecula Commons Commercial shopping center 52,566,720 2.94% 3.69% Federated Retail Holdings (Macy's and Retail department stores 51,548,656 2.88% 3.62% May) Kirnco Palm Plaza Commercial shopping center 43,424,124 2.43% 3.05% DCH Investments Inc. Commercial shopping center 29,586,565 1.65% 2.08% Costeo Vv'holesale Corporation Retail store 22,656,194 1.27% 1.59% 27511 Ynez Road LLC Commercial shopping center 17,725,309 0.99% 1.24% Ridge Park Office Commercial office buildings 17706035 0.99% 1.24% $616,986,242 34.47% 43.30% (1) Advanced Cardiovascular Systems, Inc. is a subsidiary of Abbott Laboratories, which acquired Advanced Cardiovascular Systems, Inc. in April 2006, in connection with Boston Scientific Corporation's purchase of Guidant Corporation. (2) Owner has pending appeals on one or more parcels. Source: Fiscal Consultant's Report. Advanced Cardiovascular Systems has undertaken an expansion of their campus. This expansion is estimated to entail construction of at least 135,000 square feet of office space and a three story parking garage. The expansion may include as much as 180,000 square feet of office space. (Advanced Cardiovascular Systems has submitted development plans for 412,646 square feet of office and manufacturing space that is valued at over $45.3 million. This proposed building area is considerably larger than the minimum square footages specified in Advanced Cardiovascular System's agreement with the Agency.) The project will increase this property owner's assessed values significantly, and if the expansion is completed its share of the Project Area's total and incremental assessed value is likely to increase. Appeals of Assessed Values Pursuant to California law, property owners may apply for a reduction of their property tax assessment by filing a written application, in the form prescribed by the State Board of Equalization, with the appropriate county board of equalization or assessment appeals board. After the applicant and the assessor have presented their argnments, the appeals board makes a final decision on the proper assessed value. The appeals board may rule in the assessor's favor, in the applicant's favor or the appeals board may set its own opinion of the proper assessed value, which may be more or less than either the assessor's opinion or the applicant's opinion. Any reduction in the assessment ultimately granted applies to the year for which application is made and during which the written application was filed. After a reduction is allowed, the property is reviewed on an annual basis to determine its full cash value and the valuation may be adjusted accordingly. This may result in further reductions or increases in value. Such increases are in accordance with the actual cash value of the property and may exceed the maximum annual inflationary growth rate allowed on other properties 40 under Article XIIIA of the State Constitution. Once the property has regained its prior value, adjusted for inflation, it is once again subject to the annual inflationary growth rate allowed under Article XIIIA Appeals forreduction in the "baseyear"value of an assessment, ifsuccessful, reduce the assessment for the year in which the appeal is taken and prospectively after that. The "base year" is determined by the completion date of new construction or the date of change of ownership. Any base year appeal must be made within four years of the change of ownership or new construction date. Refunds for taxpayer overpayment of property taxes may include refunds for overpayment of taxes in years after that which was appealed. Any taxpayer payment of property taxes that is based on a value that is subsequently adjusted downward will require a refund for overpayment. Assessment appeals data from the County has been reviewed by the Fiscal Consultant to determine the potential impact that pending appeals may have on the projected Tax Increment Revenues. Within the Project Area since 2000, there have been a total of95 appeals filed. Of these, 20 have been allowed with a reduction in value, 58 have been denied or withdrawn and there are 17 assessment appeals currently pending. Of the 17 pending appeals, two are appeals that have been filed by International Rectifier Corp. in Fiscal Year 2004-05 and in 2005-06. In this situation, the potential loss of value in the event of an appeal being allowed may not be cumulative. The reduction in value will be taken in the year for which the successful appeal was filed and this reduced value will be rolled forward into future years as adjusted for inflation, sales, new construction and other roll adjustments. Reductions in value on the successful appeals have totaled $71,389,376. The amount of assessed value currently under appeal is $246,921,071. Based upon the historical rate that appeals have been allowed with a reduction in value and upon the average reduction in value that has been allowed on those successful appeals, the Fiscal Consultant has estimated the loss in value that may result from the currently pending appeals. By applying these historical averages to the pending appeals, the Fiscal Consultant has estimated thatthe Agency may experience a loss of assessed value of $8,211,684 on four of the pending appeals during 2007-08. Within the top ten tax payers in the Project Area, one has filed assessment appeals that are currently pending. International Rectifier has pending appeals for the 2004-05 and 2005-06 Fiscal Years. International Rectifier is seeking a reduction of$28,555,487 (26.6%of its assessed value) for 2004-05 and a reduction of $43,319,006 (38.6% of its assessed value) for 2005-06. International Rectifier has succeeded in having its valuations reduced for 2000-01,2002-03 and 2003-04. On December 18,2003, the Appeals Board reduced the 2000-01 valuation by $19,123,556 and the 2002-03 valuation by $19,410,407 (13.44% of its assessed value). The Appeals Board reduced International Rectifier's 2003-04 value by $19,798,615 (16.60% of its assessed value) on September 2, 2004. From 2000-01 to 2004-05, International Rectifier's assessed values have been reduced from $142,246,588 to $107,285,676. This value rose slightly to $112,123,798 for 2005- 06. Where a property owner has a pending assessment appeal on the initial valuation of a new development, a successful appeal will adjust the base value for the property and that base value will carry forward into future years. The assessor typically rolls a reduction in value for a particular fiscal year forward into subsequent years with adjustments for inflation, improvements to the property and other factors. However, if the values are reduced, the taxpayer may receive property tax refunds for the cumulative reductions. See "APPENDIX B - FISCAL CONSULTANT'S REPORT." Many of the successful appeals filed in the Project Area are based on Section 51 of the Revenue and Taxation Code which requires that for each lien date the value of real property shall be the lesser of its base year value annually adjusted by the inflation factor pursuant to Article XIIIAof the State Constitution or its full cash value taking into account reductions in value due to damage, destruction, depreciation, obsolescence, removal of property or other factors causing a decline in value. Significant reductions have taken place in some counties due to declining real estate values. Reductions made under this code section may be initiated by the assessor or requested by the property owner. After a roll reduction is granted under this section, the property is reviewed on an annual basis to determine its full cash value and the valuation is adjusted accordingly. This may result in further reductions or in value increases. Such increases shall be in accordance with the actual full cash value of the property and it may exceed the maximum annual inflationary growth rate allowed on other properties under Article XIIIA of the State Constitution. Once the 41 property has regained its prior value, adjusted for inflation, it once again is subject to the annual inflationary factor growth rate allowed under Article XIIIA Direct and Overlapping Bonded Debt The Direct and Overlapping Bonded Debt Statement of the Project Area as of June 30, 2006, is shown below. It does not include the 2006 Bonds. TABLE 4 TEMECULA REDEVELOPMENT PROJECT NO.1 SECURED PROPERTY TAX ROLL AND DIRECT AND OVERLAPPING DEBT 2005-06 Assessed Valuation: Base Year Valuation: Incremental Valuation: CITY OF TEMECULA REDEVELOPMENT AGENCY $1,698,336,068 365,093,279 $1,333,242,789 DIRECT DEBT: 2002 Tax Allocation Bonds TOTAL DIRECT DEBT Total Debt 6/30106 $27,445,000 Ratio to Incremental Valuation: 2.06% OVERLAPPING TAX AND ASSESSMENT DEBT: Metropolitan Water District Eastern Municipal Water District, J.D. No. U-8 Ternecula Valley Unified School District City ofTernecula Special Tax Obligations Rancho California Water District Rancho Division Rancho California Water District Santa Rosa Division Riverside County 1915 Act Bonds (Estimate) City ofTernecula Community Facilities District No. 88-12 TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT $389,565,000 7,530,000 46,835,000 5,490,000 4,365,000 5,495,000 13,009,493 13,140,000 OVERLAPPING GENERAL FUND DEBT: Riverside COllllty General Flllld Obligations Riverside COllllty Pension Obligations Riverside COllllty Board of Education Mt. San Jacinto Community College District General FlUld Obligations Rancho California Water District General Flllld Obligations TOTAL GROSS OVERLAPPING GENERAL FUND DEBT Less: Riverside COllllty self-supporting obligations Rancho California Water District General Flllld Obligations (77.78% self-supporting) TOTAL NET OVERLAPPING GENERAL FUND DEBT $630,525,566 396,845,000 11,240,000 7,480,000 116,700,384 GROSS COMBINED TOTAL DIRECT AND OVERLAPPING DEBT NET COMBINED TOTAL DIRECT AND OVERLAPPING DEBT Agency's Share of % Applicable (1) Debt 6/30106 100. % $27.445,000 $27,445,000 (2) 0.025% $ 97,391 14.781 1,113,009 12.010 5,624,884 16.511 906,454 5.043 220,127 0.012 659 Various 2,607,605 16.511 2.169,545 $12,739,674 0.296% $1,866,356 0.296 1,174,661 0.296 33,270 0.761 56,923 3.754 4,380,932 $7,512,142 57,990 3.407,489 $4,046,663 $47,696,816 (3) $44,231,337 (1) Percentage of overlapping agency's assessed valuation located within bOlllldaries of the agency. (2) Excludes tax allocation bonds to be sold. (3) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non-bonded capital lease obligations Ratios to 2005-06 Assessed Valuation: Gross Combined Total Direct and Overlapping Debt. . . . . . . . . . . 2.81 % Net Combined Total Direct and Overlapping Debt ............ 2.60% STATE SCHOOL BUILDING AID REPAYABLE AS OF 6/30106: $0 Source: Calijornia Municipal Statistics, Inc. 42 Project Area Pass-Through Agreements See "LIMITATIONS ON TAX INCREMENT REVENUES - Pass-Through Agreements; Other Contractual Obligations" herein for a discussion of certain Pass-Through Agreements and other contracts to which the Agency is a party. The pledge of Tax Increment Revenues by the Agency under such agreements is senior to its pledge of Tax IncrementRevenues under the Indentures to secure the repayment of the Bonds. COVERAGE ANALYSIS The following table sets forth projections of Tax Increment Revenues for the Project Area, together with the estimated debt service coverage for the 2006 Bonds to December 15,2038. These projections are based on certain assumptions, and no assurance can be given that this or any level of Tax Increment Revenues will be achieved. See "RISK FACTORS - Estimated Tax Increment Revenues" herein. 43 TABLE 5 TEMECULA REDEVELOPMENT PROJECT NO.1 Projected Debt Service Coverage') Fiscal Total 2002 2006 Estimated Excess Tax 2006 Estimated Year! Taxable Incremental Bond Senior Total Senior Debt Increment for Subordinate Subordinate Bond Value Value Gross Tax Net Tax Debt Bond Debt Service Subordinate Bond Debt Debt Service Year (OOO's) (OOO's) Increment IncrementO) Service Debt Service Service Coverage% * Obligations Service Coverage %* 2007 $1,790,012 $1,424,919 $14,500,816 $3,524,062 $1,784,416 $853,116 $2,637,532 1.336% $967,530 $215,820 1.235% 2008 1840152 1475059 15010524 3647825 1782216 1005293 2787509 1.309 941316 215223 1.215 2009 1911747 1546653 15738621 3824770 1784416 1002263 2786679 1.373 1119091 215223 1.274 2010 1945774 1580681 15919267 3777563 1785816 998938 2784754 1.357 1073809 280223 1.232 2011 1980482 1615389 16239450 3837316 1786416 1000313 2786729 1.3 77 1131587 282363 1.250 2012 2015884 1650791 16595135 3921364 1785711 1001193 2786904 1.407 1215460 279213 1.279 2013 2051994 1686901 16957933 4007092 1782086 1001568 2783654 1.44 1304438 280993 1.308 2014 2088827 1723733 17327987 4094535 1783106 1001428 2784534 1.47 1391001 277468 1.337 2015 2126396 1761302 17705443 4183727 1782456 1000763 2783219 1.503 1481508 278868 1.366 2016 2164716 1799623 18090447 4274702 1785086 999563 2784649 1.535 1571053 279948 1.395 2017 2203803 1838709 18483152 4367497 1784461 1002731 2787192 1.567 1661306 280698 1.424 2018 2243671 1878578 18883711 4462148 1783021 1000073 2783094 1.603 1760054 281153 1.456 2019 2284337 1919244 19292281 4558692 1784456 1001843 2786299 1.636 1853393 281308 1.486 2020 2325816 1960723 19709022 4657167 1783456 1002719 2786175 1.672 1951992 281158 1.518 2021 2368125 2003032 20134098 4757612 1785706 997712 2783418 1.709 2055194 280698 1.553 2022 2411280 2046187 20567676 4860065 1784963 1002021 2786983 1.744 2154082 279923 1.585 2023 2455298 2090205 21009925 4964568 1782169 1000258 2782427 1.784 2263141 278770 1.622 2024 2500196 2135103 21461020 5071160 1782325 1002630 2784955 1.821 2367205 277350 1.656 2025 2545993 2180899 21921136 5179884 1785175 998893 2784068 1.861 2476816 280663 1.690 2026 2592705 2227612 22390454 5290783 1785463 998578 2784041 1.9 2587743 278440 1.728 2027 2640352 2275258 22869159 5403900 1783188 1002307 2785495 1.94 2699405 280950 1.762 2028 2688951 2323858 23357438 5519279 1783350 999841 2783191 1.983 2817088 277850 1.803 2029 2738523 2373429 23855482 5636966 1784288 1001419 2785707 2.024 2932259 279480 1.839 2030 2789085 2423992 24363488 5757006 1782075 1001802 2783877 2.068 3054129 280570 1.879 2031 2840660 2475566 24881653 5879447 1786713 995990 2782703 2.113 3177745 281120 1.919 2032 2893265 2528172 25410182 6004337 1782675 1004222 2786897 2.154 3298440 281130 1.957 2033 2946923 2581830 25949282 6131725 1785225 1000424 2785649 2.201 3427076 280600 2.000 2034 3001654 2636561 26499163 6261661 1783838 1000416 2784254 2.249 3558407 279530 2.044 2035 3057479 2692386 27060042 6394195 1783513 1003956 2787469 2.294 3687726 277920 2.086 2036 3114421 2749328 27632138 6529380 1783988 1000802 2784790 2.345 3825590 280770 2.130 2037 3172502 2807409 28215677 6667269 0 2786196 2786196 2.393 3962073 277810 2.176 2038 32317 45 2866651 28690632 6712452 0 2783502 2783502 2.412 4009950 279310 2.192 0) For a discussion of assumptions made vvith respect to the projections oftotal taxable value and Tax Increment Revenues, see APPENDIX B - FISCAL CONSULTANT'S REPORT. Among the assumptions made are an assumption of a two percent grovvth rate, an increase in values related to proferty transfers since January 1, 2006 and an increase related to 41 projects identified by the Agency that are currently llllder construction or have been recently completed and are not yet reflected on the taxro Is. It is estimated that these projects \Vill produce $58,701,000 in new assessed value over the next two fiscal years and that $19,701,000 of this new value \Vill be added on the 2007-08 tax roll and $38,999,000 \Vill be added on the 2008-09 tax roll. 0) Gross Tax Increment Revenues less housing set-aside, statutory pass-through payments and Senate bill 2557 COllllty Administrative charges. Preliminary, subject to change. SJwce: Fiscal Consultant's REpon/City ofTemecula as to assessed value and Tax Increment revenues and stone & Youngberg LLC as to debt service. 44 THE TEMECULA PUBLIC FINANCING AUTHORITY The Temecula Public Financing Authority was established pursuant to a Joint Exercise of Powers Agreement, dated April 10, 2001, by and between the City and the Agency in accordance with the provisions of the Act. The Authority was created for the purpose of providing financing for public capital improvements for the City and the Agency through the acquisition by the Authority of such public capital improvements and! or the purchase by the Authority oflocal obligations within the meaning of the Act and/or the making of secured or unsecured loans to the City or the Agency in connection with the financing of public capital improvement projects. Under the Act, the Authority has the power to purchase the 2006 Bonds and resell these to the Underwriter. The Authority has no responsibility whatsoever for repayment of the 2006 Bonds. CERTAIN LEGAL MATTERS Legal Opinions The legal opinion of Quint & Thimmig LLP, San Francisco, California, as Bond Counsel, approving the validity of the 2006 Bonds, will be made available to purchasers at the time of original delivery of the 2006 Bonds, and the proposed form thereof appears in Appendix D hereto. Bond Counsel's employment as BondCounsel is limited to a review of the legal proceedings required forthe authorization of the 2006 Bonds and to rendering the opinion set forth in Appendix D hereto. McFarlin & Anderson LLP is serving as Disclosure Counsel to the Agency. Certain legal matters will be passed upon for the Agency by Richards, Watson & Gershon, Agency Counsel. Enforceability of Remedies The remedies available to the Trustee and the registered owners of the 2006 Bonds upon an event of default under the Indentures and any other document described herein are in many respects dependent upon regnlatory and judicial actions which are often subject to discretion and delay. Under existing law and judicial decisions, the remedies provided for under such documents may not be readily available or may be limited. The various legal opinions to be delivered concurrently with the delivery of the 2006 Bonds will be qualified to the extent that the enforceability of the legal documents with respect to the 2006 Bonds are subject to limitations imposed by bankruptcy, reorganization, insolvency or other similar laws affecting the rights of creditors generally and by equitable remedies and proceedings generally. CONTINUING DISCLOSURE The Agency has covenanted for the benefit of holders and beneficial owners of the 2006 Bonds to provide certain financial information and operating data relating to the Agency by not later than eight months following the end of the Agency's fiscal year (which reporting date would be March 1), commencing with the report for the 2005-06 Fiscal Year (the "Annual Report"), and to provide notices of the occurrence of certain enumerated events, if material. The Annual Report will be filed by the Agency with each Nationally Recognized Municipal Securities Information Repository, and with the appropriate State information depository, if any. The notices of material events will be filed by the Agency with the Municipal Securities Rulemaking Board (and with the appropriate State information depository, if any). The specific nature of the information to be contained in the Annual Report or the notices of material events is set forth in the Form of Continuing Disclosure Certificate in Appendix E hereto. These covenants have been made in order to assist the Underwriters in complying with S.E.C. Rule 15c2-12(b)(5). The Agency has never failed to comply in all material respects with any previous undertakings with regard to said Rule to provide annual reports or notices of material events. 45 ABSENCE OF LITIGATION Atthe time the 2006 Bonds are delivered, the Agency will certify that, to their best knowledge, there is no litigation pending with respect to which the Agency has been served with process or knows to be threatened against the Agency in any court or other tribunal of competent jurisdiction, State or federal, which seeks to enjoin or challenges the authority of the Agency to participate in the transactions contemplated by this Official Statement, the 2006 Bonds or the Indentures. TAX MATTERS In the opinion of Quint & Thimmig LLP, San Francisco, California, Bond Counsel, under existing law, subject to the Agency's compliance with certain covenants, interest on the 2006 Bonds is excludable from gross income of the owners thereof for federal income tax purposes under Section 55 of the Code, is not includable 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 in computing an adjustment used in determining the federal alternative minimum tax for certain corporations. Failure by the Agency to comply with one or more of such covenants could cause interest on the 2006 Bonds to not be excludable from gross income under Section 103 of the Code for federal income tax purposes retroactively 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 opinionregarding any federal or state tax consequences arising with respect to the 2006 Bonds other than as expressly described above. The form of opinion Bond Counsel expects to render at the time of delivery of the 2006 Bonds is set forth in Appendix D hereto. Should the interest with respect to the 2006 Bonds become includable in gross income for federal income tax purposes, the 2006 Bonds are not subject to early redemption and will remain outstanding until maturity or until redeemed in accordance with the Indentures. Bond Counsel's opinion may be affected by action taken (or not taken) or events occurring (or not occurring) after the date hereof. Bond Counsel has not undertaken to determine, or to inform any person, whether any such actions taken or events are taken or do occur. UNDERWRITING The Agency will sell the 2006 Bonds to the Authority for immediate resale to the Underwriter. The Series ABonds are being purchased from the Authority by Stone & Youngberg LLC(the "Underwriter") on , 2006 at a purchase price of $ , (which represents the aggregate principal amount of the Series A Bonds ($ ), less an underwriting discount of $ , less a net original issue discount of $ ) and the Series B Bonds are being purchased by the Underwriter on , 2006 at a purchase price of $ , (which represents the aggregate principal amount of the Series B Bonds ($ ), less an underwriting discount of $ , less a net original issue discount of $ ). The Underwriter has agreed to purchase the 2006 Bonds at the purchase price of $ (which is the aggregate principal amount of the 2006 Bonds, less an underwriting discount of $ , less a net original issue discount of $ ). The initial public offering prices stated on the inside cover of this Official Statement may be changed from time to time by the Underwriter. The Underwriter may offer and sell the 2006 Bonds to certain dealers, banks acting as agents and others at prices lower than said public offering prices. 46 RATINGS Standard & Poor's Ratings Services has assigned its municipal bond rating of "_"to the Series A Bonds with the understanding that upon delivery of such Series A Bonds a Municipal Bond Insurance Policy insuring the payment when due of the principal of and interest on the Series ABonds will be issued by . Standard & Poor's Ratings Services has assigned an underlying municipal bond rating of " "to the Series A Bonds. Credit ratings reflect the views of the respective rating agencies and any explanation of the significance of such ratings should be obtained from the agencies. There is no assurance that any rating will not subsequently be revised or withdrawn entirely if, in the judgment of the assigning agency, circumstances so warrant. The Agency undertakes no responsibility either to bring to the attention of the Owners of the Series A Bonds any downward revision or withdrawal of such rating and any such downward revision or withdrawal could have an adverse effect on the market price of the Series A Bonds. The Agency has no obligation to maintain any rating for the Series A Bonds. The Series B Bonds are not rated by any rating agency, and the Agency does not presently intend to seek any rating of the Series B Bonds nor does the Agency anticipate that the Series B Bonds would qualify for an investment grade rating due to the structure and size of the Series A Bonds and the 2002 Bonds. PROFESSIONAL FEES In connection with the issuance of the 2006 Bonds, fees payable to certain professionals, including the Underwriter, Quint & Thimmig LLP, as Bond Counsel, Fieldman, Rolapp & Associates, as Financial Advisor, McFarlin & Anderson LLP, as Disclosure Counsel to the Agency, and U.S. Bank National Association, as Trustee, are contingent upon the issuance of the 2006 Bonds. MISCELLANEOUS The purpose of this Official Statement is to supply information to prospective buyers of the 2006 Bonds. Quotations from, and summaries and explanations of the Indentures and other documents and statutes contained herein do not purport to be complete, and reference is made to such documents, Indentures and statutes for full and complete statements of their provisions. Unless otherwise noted, all information contained in this Official Statement pertaining to the Agency, the City and the Project Area has been furnished by the Agency. Any statement in this Official Statement involving matters of opinion, whether or not expressly so stated, are intended as such and not as representations of fact. This Official Statement is not to be construed as a contract or agreement between the Agency and the purchasers or registered owners of any of the 2006 Bonds. The execution and delivery of this Official Statement has been duly authorized by the Agency. REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA By Executive Director 47 APPENDIX A SUMMARY OF CERTAIN PROVISIONS OF THE INDENTURES A-I APPENDIX B FISCAL CONSULTANT'S REPORT B-1 APPENDIX C REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA ANNUAL FINANCIAL AND COMPLIANCE REPORT FOR THE FISCAL YEAR ENDING JUNE 30, 2006 C-1 APPENDIX D FORM OF OPINIONS OF BOND COUNSEL Upon delivery of the 2006Bonds, Quint & Thimmig LLP, San Francisco, California, Bond Counsel to the Temecula RedevelopmentAgency proposes to render its final approving opinions with respect to the 2006 Bonds in substantially the following forms: December ---' 2006 Redevelopment Agency of the City of Temecula 43200 Business Park Drive Temecula, California 92590 $ Redevelopment Agency of the City of Temecula Temecula Redevelopment Project No.1 2006 Tax AIlocation Bonds, Series A Members of the Agency: OPINION: We have acted as bond counsel in connection with the issuance by the Redevelopment Agency of the City of Temecula (the "Agency") of its $ Redevelopment Agency of the City of Temecula Temecula Redevelopment Project No.1 2006 Tax AIlocation Bonds, Series A (the "Bonds''), pursuant to the Community Redevelopment Law of the State of California (the "Law"), Resolution No. RDA 06--, adopted by the Agency on November 14, 2006, Resolution No. ----' adopted by the Authority on ,2006, and an Indenture of Trust, dated as of April 1, 2002 (the "Original Indenture"), between the Agency and U.S. Bank National Association, successor to U.S. Bank, N.A, as trustee (the "Trustee"), as supplemented by the First Supplemental Indenture of Trust, dated as of December 1, 2006 (the "First Supplement"), between the Agency and the Trustee. (The Original Indenture, as amended and supplemented by the First Supplement, is referred to in this opinion as the "Indenture"). We have examined the law and such certified proceedings and other papers as we deem necessary to render this opinion. As to questions of fact material to our opinion, we have relied upon representations of the Agency contained in the Indenture 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 Agency is duly created and validly existing as a public body, corporate and politic, with the power to enter into the Indenture, perform the agreements on its part contained therein and issue the Bonds. 2. The First Supplement has been duly approved by the Agency and constitutes a valid and binding obligation of the Agency enforceable in accordance with its terms. 3. Pursuant to the Law, the Indenture creates a valid lien on the funds pledged by the Indenture for the security of the Bonds, on a parity with the lien thereon with respect to the 2002 Bonds and any future Parity Debt, as such terms are defined in the Indenture. 4. The Bonds have been duly authorized, executed and delivered by the Agency and are valid and binding special obligations of the Agency, payable solely from the sources provided therefor in the Indenture. 5. Subject to the Agency'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 of the Code, is not included as an item of tax preference in computing the federal alternative minimum tax for individuals and corporations D-1 under the Code, but is taken into account in computing an adjustment used in determining the federal altemativeminimum tax for certain corporations. Failure by the Agency 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 federal income tax purposes retroactively to the date of issuance of the Bonds. 6. Interest on the Bonds is exernptfrom 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 and the Indenture may be subject to bankruptcy, insolvency, reorganization, moratorium and other similar laws affecting creditors' rights 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 Agency and others with respect to certain material facts. Our opinion represents our legaljudgrnent based upon such review of the law and the facts that we deem relevant to render our opinion and is not a guarantee of a 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, D-2 December ---' 2006 Redevelopment Agency of the City of Temecula 43200 Business Park Drive Temecula, California 92590 $ Redevelopment Agency of the City of Temecula Temecula Redevelopment Project No. I 2006 Tax Allocation Bonds, Series B (Subordinate Lien) Members of the Agency: OPINION: We have acted as bond counsel in connection with the issuance by the Redevelopment Agency of the City of Temecula (the "Agency") of its $ Redevelopment Agency of the City of Temecula Temecula Redevelopment Project No. I 2006 Tax Allocation Bonds, Series B (Subordinate Lien) (the "Bonds"), pursuantto the Community RedevelopmentLaw of the State of California (the "Law"), Resolution No. RDA 06-_, adopted by the Agency on November 14,2006, Resolution No. _, adopted by the Agency on , 2006, and an Indenture of Trust, dated as of December I, 2006 (the "Indenture"), between the Agency and U.S. Bank National Association, as trustee. We have examined the law and such certified proceedings and other papers as we deem necessary to render this opinion. As to questions of fact material to our opinion, we have relied upon representations of the Agency contained in the Indenture 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 Agency is duly created and validly existing as a public body, corporate and politic, with the power to enter into the Indenture, perform the agreements on its part contained therein and issue the Bonds. 2. The Indenture has been duly approved by the Agency and constitutes a valid and binding obligation of the Agency enforceable in accordance with its terms. 3. Pursuant to the Law, the Indenture creates a valid lien on the funds pledged by the Indenture for the security of the Bonds, on a parity with the lien thereon with respect to any Parity Debt, as such term is defined in the Indenture. 4. The Bonds have been duly authorized, executed and delivered by the Agency and are valid and binding special obligations of the Agency, payable solely from the sources provided therefor in the Indenture. 5. Subject to the Agency'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 of the 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 in computing an adjustment used in determining the federal alternative minimum tax for certain corporations. Failure by the Agency 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 federal income tax purposes retroactively to the date of issuance of the Bonds. 6. 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 D-3 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 and the Indenture may be subjectto bankruptcy, insolvency, reorganization, moratorium and other similar laws affecting creditors' rights 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 Agency and others with respect to certain material facts. Our opinion represents our legaljudgrnent based upon such review of the law and the facts that we deem relevant to render our opinion and is not a guarantee of a 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, D-4 APPENDIX E FORM OF CONTINUING DISCLOSURE CERTIFICATE E-I APPENDIX F GENERAL INFORMATION REGARDING THE CITY General Information Following avote by the residents on November 7, 1989, the City incorporated under the general laws of the State of California on December I, 1989. The City has a Council-Manager form of govemment, 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 and recreation services to the citizens of Temecula, as well as street lighting and slope maintenance in certain areas of the district. Other govemmental entities, such as the State of California, the County of Riverside 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 10th largest city in the Inland Empire and the 4th largest in Riverside County, encompassing 30.15 square miles. The City of Temecula is 85 miles southeast of Los Angeles, 60 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. Population From 1994- 2006, the City's population grew from 35,771 to 93,923, a gain of 58,152 or 162.6%. In this same period, Riverside County added 621,332, a gain of 46.6%. CITY OF TEMECULA AND COUNTY OF RIVERSIDE POPULATION FROM 1994 TO 2005 T ernecula Riverside County Year Population % Change Population % Change 1994 35,771 1,331,998 1995 39,284 9.8 1,355,571 1.8 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' 61,792 14.9 1,590,186 4.4 2002 73,148 18.4 1,653,847 4.0 2003 75,977 3.9 1,726,321 4.4 2004 78,831 3.8 1,807,624 4.7 2005 81,921 3.9 1,888,311 4.5 2006" 93,923 14.7 1,953,330 3.4 Includes annexation a/Vail Ranch area. Includes annexation of Red hawk area. Source: California Department of Finance. F-I Construction Activity The following table shows a five year history of construction activity in the City. CITY OF TEMECULA BUILDING PERMITS AND VALUATIONS (Calendar Year 2001 - 2005) 2001 2002 2003 2004 2005 Valuation ($000): Residential $127,823,375 $100,516,115 $194,699,509 $185,041,089 $261,657,164 Non-residential 39,603,913 43.487,229 36,087,001 56,658,233 73.749,612 Total $167426288 $144003344 $230 786 510 $241 699 322 $335 406 776 Residential Units: Single family 944 650 1271 888 996 Multiple family -0- -0- ill 408 360 Total 944 650 1413 1296 1356 Source: Construction Industry Research Board. The following table shows historical commercial and residential construction and property values. CITY OF TEMECULA COMMERCIAL AND RESIDENTIAL CONSTRUCTION AND PROPERTY VALUES 1996 - 2005 Commercial Construction(1) Residential Construction(1) Property Values(2) Number Number Fiscal Year of Permits Value of Units Value Commercial Residential 1996 136 23,572 987 93,674 1,478,230 1,677,720 1997 202 32,863 857 85,257 1,347,000 1,856,203 1998 203 66,226 835 105,527 1,321,044 1,958,706 1999 337 159,286 1,384 180,840 1,378,364 2,067,549 2000 437 52,497 1,179 148,660 1,524,091 2,303,303 2001 265 39,511 1,606 169,687 1,935,537 2,627,716 2002 252 51,686 938 97,773 2,183,862 3,017,148 2003 304 41,402 1,162 145,387 2,633,661 4,127,318 2004 116 79,579 918 241,322 2,757,407 4,808,116 2005 513 49,777 1,354 246,466 2,894,954 6,895,413 Values in thousands of dollars. Source: (1) City ofTemEcula, Building and Safety DepartmEnt. (2) County Land Use Statistical Recap Report. F-2 Direct and Overlapping Bonded Debt The statement of direct and overlapping debt (the "Debt Report") set forth below was prepared by California Municipal Statistics, Inc. as of June 30, 2006. The Debt Report includes only such information as has been reported to California Municipal Statistics, Inc. by the issuers of the debt described therein and by others. The Debt Report is included for general information purposes only. The City takes no responsibility for its completeness or accuracy. DIRECT AND OVERLAPPING BONDED DEBT (As of June 30, 2006) CITY OF TEMECULA CITY OF TEMECULA 2005-06 Assessed Valuation: Redevelopment Incremental Valuation: Adjusted Assessed Valuation: $10,286,222,803 1 333 242 789 $ 8,952,980,014 OVERLAPPING TAX AND ASSESSMENT DEBT: Metropolitan Water District Eastern Municipal Water District, J.D. No. U-8 Temecula Valley Unified School District Rancho California Water District, Rancho Division Rancho California Water District, Santa Rosa Division Rancho California Water District Community Facilities District No. 88-3 City of Temecula Special Tax Obligations Eastern Municipal Water District Community Facilities District No. 2002-04- Eastern Municipal Water District Community Facilities District No. 2002-08 Temecula Community Facilities District No. 88-12 Temecula Public Financing Authority ConlImmity Facilities District No. 01-2 Temecula Public Financing Authority ConlImmity Facilities District No. 03-1 Temecula Public Financing Authority ConlImmity Facilities District No. 03-2 Temecula Public Financing Authority ConlImmity Facilities District No. 03-3 Temecula Public Financing Authority ConlImmity Facilities District No. 03-6 Temecula Valley Unified School District Community Facilities District No. 2002-1, I.A. No. County 1915 Act Bonds (Estimated) City ofTemecula 1915 Act Bonds TOTAL DIRECT AND OVERLAPPING TAX AND ASSESSrvIENT DEBT OVERLAPPING GENERAL FUND DEBT: Riverside COlmty General Fund Obligations Riverside COlmty Pension Obligations Riverside COlmty Board of Education Certificates of Participation Mt. San Jacinto Community College District General Fund Obligations Rancho California Water District General Flll1d Obligations TOTAL GROSS OVERLAPPING GENERAL FUND DEBT Less: Riverside COlll1ty self-supporting obligations Rancho California Water District General Flll1d Obligations (77.78<>/0 self-supporting) TOTAL NET OVERLAPPING GENERAL FUND DEBT GROSS COMBINED TOTAL DEBT NET COMBINED TOTAL DEBT Total Debt 6/30106 $389,565,000 7,530,000 46,835,000 4,365,000 5,495,000 4,435,000 5,490,000 855,000 4,905,000 13,140,000 17,310,000 15,670,000 51,250,000 30,490,000 4,845,000 7,430,000 52,396,493 1,100,000 $630,525,566 396,845,000 11,240,000 7,480,000 116,700,384 %Annlicable ill 0.612% 85.749 70.124 76.956 5.255 100. 100. 100. 100. 100. 100. 100. 100. 100. 100. 57.435 Various 100. 7.257% 7.257 7.257 18.665 58.584 (2) City's Share of Debt 6/30106 $--n84,138 6,456,900 32,842,575 3,359,129 288,762 4,435,000 5,490,000 855,000 4,905,000 13,140,000 17,310,000 15,670,000 51,250,000 30,490,000 4,845,000 4,267,421 29,743,032 1100000 $228,831,957 $ 45,757,240 28,799,042 815,687 1,396,142 68,367,753 $145,135,864 1,421,726 53176438 $ 90,537,700 $373,967,821 $319,369,657 (l)Percentage of overlapping agency's assessed valuation located within boundaries of the city. (2)Excludes tax and revenue anticipation notes, enteIprise revenue, mortgage revenue and tax allocation bonds and non-bonded capital lease obligations. Ratios to 2005-06 Assessed Valuation: Direct-Debt ($5,490,000) ~............................ 0.05% Total Direct and Overlapping Tax and Assessment Debt. 2.22% Ratios!&. Adiusted Assessed Valuation: Gross Combined Total Debt. 4.18<>/0 Net Combined Total Debt 3.57% STATE SCHOOL BUILDING AID REPAYABLE AS OF 6/30106: $0 SOurce: California Municipal Statistics, Inc. F-3 Economic Condition and Outlook 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 andNissan. The following tables set forth major manufacturing and non-manufacturing employers: CITY OF TEMECULA LARGEST EMPLOYERS BY NUMBER OF EMPLOYEES (As of June 30, 2006) Employer Advanced Cardiovascular Systems, Inc. Temecula Valley Unified School District Professional Hospital Supply International Rectifier Milgard Manufacturing Norm Reeves Auto Group Costco Wholesale Corporation Channell Commercial Corp. Chern i-Con International Sears Albertsons Plant Equipment, Inc. Robinson's May T emecula Creek Inn JC Penney Company City of T emecula Dayton Hudson Corporation; Target Home Depot Opto 22, Inc. Toyota of Temecula Valley Approxlmate No. of Employees Type of Business Medical equipment Public school system Medical equipment and supplies Power semi-conductors Windows Auto Dealer \Vholesale warehouse Cable enclosures Manufacturing Retail Supennarket Telephone equipment Retail Hotel Retail Municipal corporation Retail Retail Manufacturing Auto Dealer 3,481 2,512 1,352 620 550 360 354 300 300 270 260 245 230 222 221 208 200 200 200 186 Source: City Finance Deparlment. Financial Information The City's financial records for general governmental operations are maintained on a modified accrual basis, with revenues recorded when available and measurable and expenditures recorded when the services or goods are received and the liability incurred. Management of the City is responsible for establishing and maintaining an internal control structure desigued to ensure that the assets of the govemment are protected from loss, theft or misuse and to ensure that adequate accounting data are compiled to allow the preparation of financial statements in conformity with generally accepted accounting principles. The internal control structure is desigued to provide reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable assurance recoguizes that: (I) the cost of the control should not exceed the benefits likely to be derived; and (2) the valuation of costs and benefits requires estimates and judgments by management. Budgetary Policy and Control F-4 Budgets are adopted annually by the City Council by resolution and are prepared for each fund in accordance with its basis of accounting. As provided by City ordinance, the Finance Officer is responsible forpreparing the budget and for its implementation after adoption. All appropriations lapse at year end. The City Manager has the legal authority to transfer operating budget appropriations within a budgetary department provided that total appropriations for a department are not changed. Changes to total departmental appropriations require the majority approval of the City Council. The City maintains budgetary controls to ensure compliance with legal provisions embodied in the annual budget adopted by the City Council. The level of budgetary control (that is, the level at which expenditures cannot legally exceed the appropriated amount) is established by department. Sales Tax Assessed Values The City of Temecula provides high quality services to residents. 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 recoguized chains or intimate dining bistros. CITY OF TEMECULA SALES TAX HISTORY Year Amount 1989-90 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 $632,153 $9,186,547 $10,652,400 $14,009,321 $16,321,929 $19,237,317 $21,572,199 $25,392,314 $26,070,553 $30,155,213 Source: City oj Temecula. F-5 CITY OF TEMECULA PRINCIPAL SECURED PROPERTY OWNERS FOR THE YEAR ENDED JUNE 30, 2007 2007 Assessed Percent of Valuation Total Assessed Taxpayer Type of Business (in thousands) lVahmtion) Advanced Cardiovascular System Inc. Medical Appliances Mfg. $175,217 1.55% International Rectifier Corporation Electronics Mfg. 109,180 0.96 T ernecula Towne Center Associates Regional Shopping Center 96,197 0.85 Woodside Wolf Creek Inc. Vacant Residential Land 82,135 0.73 MY Housing Partners III Vacant Residential Land 63,773 0.56 Inland Western Ternecula Commons Commercial Shopping Center 52,567 0.46 Lakha Properties T emecula Commercial Shopping Property 49,419 0.44 Federated Retail Holdings Inc. Retail Stores 47,490 0.42 Kimco Palm Plaza Commercial Shopping Center 43,424 0.38 Wolf Creek Development Vacant Residential Land 4) 9'iR Q.3B. Totals $762,360 6.73% Source: Hdl Coren & Cone CITY OF TEMECULA ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY FOR THE FISCAL YEARS ENDED JUNE 30, 2001 THROUGH 2007 (Values in Thousands) Total Net Total Estimated Fiscal Secured and Real Estate Net Taxable Homeowners Assessed Actual Year Unsecured Exemptions Assessed Value Exemption Value Value 2001 $4,563,253 $(29,666) $4,533,587 $(64,372) $4,469,215 $4,469,215 2002 5,201,010 (33,360) 5,167,650 (68,938) 5.098,712 5,098,712 2003 6,201,896 (30,010) 6,171,886 (82,926) 6,088,960 6,088,960 2004 6,931,291 (43,142) 6,888,149 (92,362) 6,795,787 6,795,787 2005 7,794,688 (53,240) 7,741,448 (94,237) 7,647,211 7,647,211 2006 10328098 -51722 10276375 -108654 10167721 10167721 2007 11836051 -75481 11760570 -111392 11649178 11649178 Source: Riverside County Assessor's Qffice/Hdl Coren & Cone. General Information IndWitrialRealEstate. 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 square feet of space . Among local cities, this ranked tenth, above Moreno V alley(25,890 square feet) and below San Bernardino (804,451 square feet). F-6 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 May, 2006, there were twenty (20) wineries which produce wine with locally grown grapes. Climate. Temecula Valley 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. Thequality of airin 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 2 alternative schools), 6 middle schools, 2 charter schools, I horne-schooling program, 17 elementary schools and I adult school. In addition, there are 9 private schools and several pre-schools. The general boundaries extend north to JeanNicholas 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. As of May, 2005, approximately 25,653 students (Grades K-12) are 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 figures 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, 4miles north ofInterstate 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 Orange 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 15 freeway. Normally, a Southern California community undergoes rapid growth only when population spills from Orange or Los Angeles counties. The latest population data shows Temecula with 93,923 residents as of January I, 2006, which includes the annexation of the Vail Ranch area in July, 2001 and the March, 2004 annexation of the community of Redhawk, which became official June 30, 2005. F-7 APPENDIX G SPECIMEN MUNICIPAL BOND INSURANCE POLICY G-I APPENDIX H BOOK-ENTRY SYSTEM Thefollowingdescription 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 2006 Bonds, confirmation and transfer of beneficial ownership interests in the 2006 Bonds and other Bond-related transactions by and betweenDTC, Direct Participants, Indirect Participants and Beneficial Owners of the 2006 Bonds is based solely on information furnished by DTC to theAgencywhich the Agency believes to be reliable, but the Agency and the Underwriter do not and cannot make any independent representations concerning these matters and do not take responsibility for the accuracy or completeness thereof Neither theDTC, DirectParticipants, Indirect Participants nor the Beneficial Owners should rely on theforegoing 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 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 ofDTC. One 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 of the Securities Exchange Act of 1934. DTC holds and provides asset servicing for over 2.2 million issues of US. and non-US. 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 US. andnon-US. 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, FICC, and EMCC, also subsidiaries of DTCC), 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 US. and non-US. 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 (the "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 informationaboutDTC can be found atwww.dtcc.com and www.dtc.org. Purchases of 2006 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 Owners will not receive written confirmation from DTC of their purchase. Beneficial Owners 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 Owner 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 withDTC are registered in the name ofDTC's partnership nominee, Cede & Co. or such other name as requested by an authorized representative ofDTC. The deposit of the 2006 Bonds with DTC and their registration in the name of Cede H-I & Co. or such other DTC nominee do not effect any change in beneficial ownership. DTC has no knowledge of the actual Beneficial Owners of the 2006 Bonds; DTC's records reflect only the identity of the Direct Participants to whose accounts such Bonds are credited, which mayor may not be the Beneficial Owners. The Direct or Indirect Participants will remain responsible for keeping account of their holdings on behalf of their customers. Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to IndirectParticipants, and by DirectParticipants and IndirectParticipants to Beneficial Owners will be governed by arrangements among them, subject to any statutory or regulatory requirements as may be in effect from time to time. Beneficial Owners of 2006 Bonds may wish to take certain steps to augment the transmissions to them of notices of siguificant 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. In the alternative, Beneficial Owners may wish to provide their names and addresses to the Trustee and request that copies of notices be provided directly to them. Redemption notices shall be sent to DTC. If less 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 respectto the 2006Bonds unless authorized bya Direct Participant in accordance with DTC's Procedures. Under its usual procedures, DTC mails an Omnibus Proxy to the Agency as soon as possible after the record date. The Omnibus Proxy assigus 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 of DTC. DTC's practice is to credit Direct Participants' accounts upon DTC' s receipt of funds and corresponding detail information from the Agency or the Trustee, on payable date in accordance with their respective holdings shown on DTC's records. Payments by Participants to Beneficial Owners 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 Trustee or the Agency, subject to any statutory or regulatory 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 ofDTC) is the responsibility of the Trustee, disbursement of such payments to Direct Participants will be the responsibility of DTC, 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 Agency or the Trustee. 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 Agency may decide to discontinue use of the system of book-en try-only transfers throughDTC (or a successor securities depository). In that event, the 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 Agency believes to be reliable, but the Agency takes no responsibility for the accuracy thereof. H-2 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 Agency determines that DTC shall no longer act and delivers a written certificate to the Trustee to that effect, then the Agency will discontinue the Book-Entry System with DTC for the 2006 Bonds. If the Agency determines to replace DTC with another qualified securities depository, the Agency 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 of the Indentures. If the Agency 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 desiguate. In the eventthat 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 Trustee identified in the Indentures, and (iii) the 2006 Bonds will be transferable and exchangeable as provided in the Indentures. TheAgencyand the TrWitee do not have any responsibility or obligation toDTC Participants, to the personsforwhom 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 the Indentures; (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 Indentures. The Agency and the Trustee 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 owner, or any notices to the Beneficial Owners or that they will doso on a timely basis or will serve and act in a manner described in this Official Statement. The Agency and the TrWitee are not responsible or liable for the failure of DTC 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. H-3 BOND PURCHASE AGREEMENT Redevelopment Agency of the City of Temecula Temecula Redevelopment Project No.1 2006 Tax Allocation Bonds REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA TEMECULA REDEVELOPMENT PROJECT NO.1 $ 2006 TAX ALLOCATION BONDS, SERIES A AND $ 2006 TAX ALLOCATION BONDS, SERIES B (SUBORDINATE LIEN) BOND PURCHASE AGREEMENT ,2006 Redevelopment Agency of the City of Temecula 43200 Business Park Drive Temecula, California 92590 Temecula Public Financing Authority 43200 Business Park Drive Temecula, California 92590 Ladies and Gentlemen: Stone & Youngberg LLC (hereinafterreferred to as the "Underwriter") offers to enter into this Bond Purchase Agreement (the "Bond Purchase Agreement") with the Redevelopment Agency of the City of Temecula (herein referred to as the "Agency") and the Temecula Public Financing Authority (herein referred to as the "Authority"), which will be binding upon the Agency, the Authority and the Underwriter upon the acceptance hereofby the Agency and the Authority. This offer is made subject to the acceptance hereof by the Agency and the Authority by execution of this Bond Purchase Agreement and its delivery to the Underwriter on or before 9:00 A.M., California time, on the date hereof. All capitalized terms used herein, but not defined herein, shall have the meanings ascribed thereto in the Indentures (as hereinafter defined). 1. Purchase and Sale. Upon the terms and conditions and upon the basis of the representations, warranties and agreements hereinafter set forth, the Authority agrees to purchase from the Agency, and the Agency agrees to sell and deliver to the Authority, and the Underwriter hereby agrees to purchase from the Authority, and the Authority agrees to sell and deliver to the Underwriter, all (but not less than all) of the Redevelopment Agency of the City of Temecula Temecula Redevelopment Project No. I 2006 Tax Allocation Bonds, Series A (the "Series A Bonds"), in the aggregate principal amount of $ and its 2006 Tax Allocation Bonds, Series B (Subordinate Lien) (the "Series B Bonds," collectively, the "2006 Bonds") in the aggregate principal amount of $ . The purchase price of the Series A Bonds is $ (which is the aggregate principal amount of the Series A Bonds, less an underwriting discount of $ , less net original issue discount of$ ). The purchase price of the Series B Bonds is $ (which is the aggregate principal amount of the Series B Bonds, less an underwriting discount of $ , less net original issue discount of $ ). The 2006 Bonds will be dated , 2006 and will have the maturities, bear interest at the rates and will be subject to redemption as set forth on Exhibit A hereto. 2. Authorizing: Instruments and Law. The 2006 Bonds will be issued pursuant to the provision of the Redevelopment Law of the State of California, constituting Part I of Division 24 of the Health and Safety Code of the State of California (the "Redevelopment Law), Resolution No. RDA , adopted by the lEMRDA BPAk.wpdJMC/ Agency on , 2006 (the "Resolution"). The Series A Bonds will be issued under a First Supplemental Indenture of Trust, dated December I, 2006 by and between the Agency and US. Bank National Association (the "Trustee" and the "Supplemental Indenture," respectively, and the Supplemental Indenture together with the Indenture of Trust, dated as of April I, 2002, by and between the Agency and the Trustee, the "Senior Indenture") and the Series B Bonds will be issued under an Indenture of Trust, dated as of December I, 2006 by and between the Agency and the Trustee (the "Series BIndenture" and together with the Senior Indenture, the "Indentures"). The proceeds of the 2006 Bonds will be used to (i) finance redevelopment activities within or of benefit to the Project Area, (ii) establish a Senior Subaccount within the Reserve Fund for the Series A Bonds all or a portion of which maybe funded by a reserve surety for the Series ABonds in satisfaction of theReserveRequirementforthe Series A Bonds, (iii) establish a Subordinate Subaccount within the Reserve Fund for the Series B Bonds in satisfaction of the Reserve Requirement for the Series B Bonds, and (iv) provide for the costs of issuing the 2006 Bonds, including the premium for the financial guaranty insurance policy and Debt Service Reserve Surety Bond for the Series A Bonds. The 2006 Bonds will be special obligations of the Agency and are payable solely from and secured by a pledge of the Tax Increment Revenues (as defined in the Indentures), on a parity with any Parity Debt (as defined in the Indentures) and a pledge of amounts in certain funds and accounts established under the Indentures, all as further described in the Indentures and Official Statement (described below). 3. Public Offerin~. The Agency hereby ratifies, confirms and approves of the use and distribution by the Underwriter prior to the date hereof of the preliminary official statement, dated , 2006, relating to the 2006 Bonds (the "Preliminary Official Statement''), which official statement the Agency has deemed final as of its date for purposes of Rule 15c2-12 promulgated under the Securities Exchange Act of 1934 (the "Rule"), except for information permitted to be omitted therefrom by the Rule. Within seven (7) business days from the date hereof (or such earlier date so as to allow the Underwriter to meet its obligations under the Rule and Rule G-32 of the Municipal Securities Rulemaking Board), the Agency shall deliver to the Underwriter a final official statement relating to the 2006 Bonds, executed on behalf of the Agency by an authorized representative of the Agency and dated the date hereof to the Underwriter, which shall include information permitted to be omitted in the Preliminary Official Statement by paragraph (b)( I) of the Rule and with such other amendments or supplements as shall have been approved by the Agency and by the Underwriter (the "Final Official Statement"). The Preliminary Official Statement and the Final Official Statement, including the cover pages, summary statements and the appendices thereto, and all information incorporated therein by reference are hereinafter referred to collectively as the "Official Statement." The Underwriter agrees that it will not confirm the sale of any 2006 Bonds unless the confirmation of sale is accompanied or preceded by the delivery of a copy of the final Official Statement. The Agency further authorizes the Underwriter to use, in connection with the offer and sale of the 2006 Bonds, the Official Statement, that certain Continuing Disclosure Certificate, dated as of December I, 2006 (the "Continuing Disclosure Certificate") and the Indentures (all such documents referred to in this sentence, together with the Bond Purchase Agreement are hereinafter collectively referred to as the "Financing Documents''), and all information contained herein and therein and all other documents, agreements, certificates or written statements furnished by the Agency to the Underwriter or entered into by the Agency in connection with the transactions contemplated by this BondPurchase Agreement and the 2006 Bonds. The Agency will undertake, pursuant to the Indentures and the Continuing Disclosure Certificate, to provide certain annual financial information and notices of the occurrence of certain events, if material. lEMRDA BPAk.wpdJMC/ 2 A description of this undertaking is set forth in the Preliminary Official Statement and will also be set forth in the final Official Statement. The Underwriter agrees to make a bona fide offering of all the 2006 Bonds initially at the public offering prices (or yields) set forth on the cover page of the Official Statement. Subsequent to the initial public offering, the Underwriter reserves the right to change the public offering prices (or yields) as they deem 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. 4. The Closing:. At 8:00 A.M., California time, on , 2006, or at such other time or on such earlier or later business day as shall have been mutually agreed upon by the Authority, the Agency and the Underwriter, the Agency will release the 2006 Bonds to the Authority, and the Authority will, subject to the terms and conditions hereof, cause The Depository Trust Company inNew York, New York ("DTC") to release the 2006 Bonds for the beneficial ownership of the Underwriter and will deliver to the Underwriter the other documents hereinafter mentioned at the offices of Quint & ThimmigLLP, San Francisco, California ("Bond Counsel''), or another place to be mutually agreed upon by the Agency and the Underwriter. The Underwriter will accept such delivery and pay the purchase price of the 2006 Bonds as set forth in Section I hereof payable in immediately available funds to the order of the Agency on the date of Closing (as hereinafter defined). This payment and delivery, together with the delivery of the aforementioned documents, is herein called the "Closing." 5. A~ency Representations Warranties and Covenants. The Agency represents, warrants and covenants to the Underwriter and the Authority that: (a) The Agency is a public body, corporate and politic, organized and existing under the Constitution (the "Constitution") and laws of the State of California (the "State''), including the Redevelopment Law, with full right, power and authority to sell, issue and deliver the 2006 Bonds to the Authority for sale to the Underwriter as provided herein, and to execute, deliver and perform its obligations under the 2006 Bonds, this Bond Purchase Agreement, the Continuing Disclosure Certificate and the Indentures. (b) This Bond Purchase Agreement, the 2006 Bonds, the Continuing Disclosure Certificate and the Indentures, when duly executed and delivered by all parties thereto, will constitute valid, legal and binding obligations of the Agency enforceable against the Agency in accordance with their respective terms, except as the enforceability thereofmay be limited by the application of equitable principles, if equitable remedies are sought, or by applicable bankruptcy, insolvency or other similar laws affecting the enforcement of creditors' rights generally. (c) The Agency has, and at the date of the Closing will have, the full legal right, power and authority to enter into this Bond Purchase Agreement, the Continuing Disclosure Certificate and the Indentures, to issue and deliver the 2006 Bonds for sale to the Authority and resale to the Underwriter as provided herein, and will have duly authorized and approved the execution and delivery of, and the performance by the Agency of its obligations contained in, the 2006 Bonds, this Bond Purchase Agreement, the Continuing Disclosure Certificate and the Indentures. (d) As of the date thereof, the Official Statement did not contain any untrue statement of a material factor 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. lEMRDA BPAk.wpdJMC/ 3 (e) Ifbetween the date hereof and the date which is 25 days after the End of the Underwriting Period (as hereinafter defined) for the 2006 Bonds, an event occurs of which the Agency has knowledge and which might or would cause the information contained in the Official Statement, as then supplemented or amended, to contain any untrue statement of a material fact or to omit to state a material fact required to be stated therein or necessary to make the information therein, in the light of the circumstances under which it was presented, not misleading, the Agency will notify the Underwriter, and, if in the opinion of the Agency, Disclosure Counsel, the Underwriter or its counsel, such event requires the preparation and publication of a supplement or amendment to the Official Statement, the Agency will forthwith prepare and furnish to the Underwriter (at the expense of the Agency) a reasonable number of copies of an amendment of or supplement to the Official Statement (in form and substance satisfactory to Bond Counsel, Disclosure Counsel and Counsel for the Underwriter) which will amend or supplement the Official Statement so that it will not contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances existing at the time the Official Statement is delivered to 2006 Bond purchasers, not misleading. For the purposes of this subsection, between the date hereof and the date which is 25 days after the End of the Underwriting Period for the 2006 Bonds, the Agency will furnish such information with respect to itself as the Underwriter may from time to time reasonably request. (f) If the information contained in the Official Statement is amended or supplemented pursuant to paragraph (e) hereof, at the time of each supplement or amendment thereto, the portions of the Official Statement so supplemented or amended (including any financial and statistical data contained therein) will not contain any untrue statement of amaterial fact or omit to state a material fact required to be stated therein or necessary to make the information therein, in the light of the circumstances under which it was presented, not misleading. (g) As used herein and for the purposes of the foregoing, the term "End of the Underwriting Period" for the 2006 Bonds shall mean the earlier of (i) the Closing Date unless the Agency shall have been notified in writing to the contrary by the Underwriter on or prior to the Closing Date, or (ii) the date on which the End of the Underwriting Period for the 2006 Bonds has occurred under the Rule; provided, however, that the Agency may treat as the End of the Underwriting Period for the 2006 Bonds the date specified as such in a notice from the Underwriter stating the date which is the End of the Underwriting Period. (h) At the time of the Closing, there shall not have been any material adverse changes in the financial condition of the Agency or any material adverse change in the valuation of taxable property in the Project Area (as described in the Official Statement) since the date of the final Official Statement. (i) As of the time of acceptance hereof and as of the time of the Closing, the Agency is not and will not be in material breach of or in material default under any applicable law or administrative regulation of the State or the United States of America, or any applicable judgment or decree or any trust agreement, loan agreement, bond, note, resolution, ordinance, agreement or other instrument to which the Agency is a party or is otherwise subject which breach would have a material adverse effect on the 2006 Bonds; and, as of such times, the execution and delivery by the Agency of this Bond Purchase Agreement, the Indentures, the Continuing Disclosure Certificate and the 2006 Bonds, and compliance by the Agency with the provisions of each of such agreements or instruments do not and will not conflict with or constitute a breach of or default under any applicable law or administrative regulation of the State or the United States of America applicable to the Agency or any applicable judgment or decree or any trust agreement, loan agreement, bond, note, resolution, ordinance, agreement or other instrument to which the Agency is a party or is otherwise subject which breach or default would have a material adverse effect on the 2006 Bonds. lEMRDA BPAk.wpdJMC/ 4 (j) Between the time of acceptance hereof and the Closing, the Agency will not, without the prior written consent of the Underwriter, issue any 2006 Bonds or securities with a pledge of or lien on the Tax Increment Revenues. (k) As of the time of acceptance hereof and the Closing, and except as described in the Official Statement, no litigation is or will be pending and served upon the Agency or, to the knowledge of the Agency, threatened in any court (i) in any way challenging any member of the Agency, or the Chairperson of the Agency, to their respective offices, or (ii) seeking to restrain or enjoin the issuance or delivery of any of the 2006 Bonds, or the collection of all the Tax Increment Revenues which are pledged to pay the principal of and interest on the 2006 Bonds, or in any contesting or affecting the validity of the 2006 Bonds, this Bond Purchase Agreement, the Indentures, the Continuing Disclosure Certificate or the collection of all of the Tax Increment Revenues, or the pledge of the Tax Increment Revenues, or contesting the powers of the Agency or its authority for the issuance of the 2006 Bonds, or (iii) contesting in any way the completeness, accuracy or fairness of the Official Statement. (I) As of the time of acceptance hereof and as of the date of the Closing, the Agency does not and will not have outstanding any indebtedness, which indebtedness is secured by a lien on the Tax Increment Revenues of the Agency superior to or on a parity with the lien of the 2006 Bonds on the Tax Increment Revenues except as otherwise described in the Official Statement. (m) The Agency will furnish such information, execute such instruments and take such other action in cooperation with the Underwriter, attheexpense of the Underwriter (except as provided in this paragraph), as it may reasonably request in order 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 of America as the Underwriter may desiguate; provided, however, that the Agency will not be required to execute a special or general consent to service of process or qualify as a foreigu corporation in connection with any such qualification in any jurisdiction. (n) At the time of acceptance hereof and as of the date of the Closing, all approvals, consents or orders required of the Agency by any govemmental authority, board, agency or commission having jurisdiction which would constitute conditions precedent to the performance by the Agency of its obligations under this Bond Purchase Agreement, the 2006 Bonds, the Indentures and the Continuing Disclosure Certificate have been obtained. (0) The Series A Bonds are secured by a first pledge of and lien on all of the Tax Increment Revenues and all of the moneys on deposit in certain funds and accounts established under the Indentures, including the Special Fund, the Debt Service Fund, the Redemption Account, the Interest Account, the Principal Account, the Sinking Account, the Redemption Account and the Reserve Account, all as provided in, and subject to the provisions of, the Indentures. The Series B Bonds are subordinate to the pledge of and lien on the Tax Increment Revenues under the Senior Indenture and under the Financial Guaranty Agreement and the 2006 Financial Guaranty Agreement (as such terms are defined in the Senior Indenture). (p) The Agency is in compliance with its statutory reporting requirements and the Agency has no "excess surplus" as defined in California Health and Safety Code Section 33334.12(g)(i). 6. Representations Warranties and Aweements of the Authority. The Authorityrepresents, warrants and agrees as follows: lEMRDA BPAk.wpdJMC/ 5 (a) The Authority is an entity duly organized and validly existing under the laws of the State of California. (b) The Authority has full legal right, power and authority to enter into this Bond Purchase Agreement, and to perform the actions contemplated hereby. (c) By all necessary official action, the Authority has duly authorized and approved the execution and delivery of, and the performance by the Authority of the obligations in connection with this Bond Purchase Agreement. (d) As of the date hereof, there is no action, suit, proceeding, inquiry or investigation, notice of which has been served on the Authority, at law or in equity before or by any court, government agency, public board or body, pending or to the best knowledge of the officer of the Authority executing this Bond Purchase Agreement, threatened against the Authority, affecting the existence of the Authority or the titles of its officers to their respective offices, or affecting or seeking to prohibit, restrain or enjoin the sale, issuance or delivery of the 2006 Bonds or the execution and delivery or adoption by the Authority of this BondPurchase Agreement, nor, to the best knowledge of the Authority, is there any basis for any such action, suit, proceeding, inquiry or investigation, wherein an unfavorable decision, ruling or finding would materially adversely affect the authorization, execution, delivery or performance by the Authority of this Bond Purchase Agreement. (e) Any certificate sigued by any officer of the Authority and delivered to the Underwriter pursuant to this Bond Purchase Agreement, or any document contemplated thereby shall be deemed a representation and warranty by the Authority to the Underwriter as to the statements made therein. 7. Closinr Conditions The Underwriter has entered into this Bond Purchase Agreement in reliance upon the representations, warranties and covenants of the Authority and the Agency contained herein and the performance by the Authority and the Agency of their respective obligations hereunder, both as of the date hereof and as of the date of the Closing. The Underwriter's obligations under this Bond Purchase Agreement are and shall be subject to the following conditions: (a) At the Closing Date, the 2006 Bonds, the Bond Purchase Agreement, the Indentures, the Continuing Disclosure Certificate and the Official Statement shall have been duly authorized, executed and delivered by the respective parties thereto, in substantially the forms heretofore submitted to the Underwriter with only such changes as shall have been agreed to by the Underwriter, and said agreements 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 Bond Counsel shall deem to be necessary and appropriate; (b) The representations and warranties of the Authority and the Agency contained in this Bond Purchase Agreement, the Indentures and the Continuing Disclosure Certificate shall be true and correct in all material respects on the date hereof and on the Closing Date, as if made again on the Closing Date, and the Official Statement (as the same may be supplemented or amended with the written approval of the Underwriter) shall be true and correct in all material respects and shall not contain any untrue statement or factor omit to state any fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which such statements were made, not misleading; lEMRDA BPAk.wpdJMC/ 6 (c) At the time of the Closing, the Authority and the Agency shall perform or have performed all of their obligations required under or specified in the Financing Documents at or prior to the Closing; (d) At the time of the Closing, no default shall have occurred or be existing under the Bond Purchase Agreement, the Indentures and the Continuing Disclosure Certificate and the Agency shall not be in default in the payment of principal or interest on any of its indebtedness which default shall materially adversely impact the ability of the Agency to make its payment on the 2006 Bonds; (e) In recoguition of the desire of the Agency and the Underwriter to effect a successful public offering of the 2006 Bonds, and in view of the potential adverse impact of any of the following events on sucha public offering, the Underwriter shall have the right to terminate this agreement by written notification to the Agency if at any time at or prior to the Closing; (i) the marketability of the 2006 Bonds or the market price thereof, in the reasonable opinion of the Underwriter, has been materially adversely affected by any event occurring which causes any statement contained in the Official Statement to be materially misleading or results in a failure of the Official Statement to state a material fact necessary to make the statements in the Official Statement, in the light of the circumstances under which they were made, not misleading; or (ii) the marketability of the 2006 Bonds or the market price thereof, in the opinion of the Underwriter, has been materially adversely affected by an amendment to the Constitution of the United States of America or by any legislation in or by the Congress of the United States of America or by the State, or the amendment of legislation pending as of the date of this Bond Purchase Agreement in the Congress of the United States of America, or the recommendation to Congress or endorsement for passage (by press release, other form of notice or otherwise) of legislation by the President of the United States of America, the Treasury Department of the United States of America, the Internal Revenue Service or the Chairperson or ranking minority member of the Committee on Finance of the United States Senate or the Committee on Ways and Means of the United States House of Representatives, or the proposal for consideration oflegislation by either such Committee or by any member thereof, or the presentment oflegislation for consideration as an option by either such Committee, or by the staff of the Joint Committee on Taxation of the Congress of the United States of America, or the favorable reporting for passage of legislation to either House of the Congress of the United States of America by a Committee of such House to which such legislation has been referred for consideration, or any decision of any federal or State court or any ruling or regulation (final, temporary or proposed) or Official Statement on behalf of the United States Treasury Department, the Internal Revenue Service or other federal or State authority materially adversely affecting the federal or State tax status of the Agency, or the interest on bonds or notes or obligations of the general character of the 2006 Bonds; or (iii) any legislation, ordinance, rule or regulation shall be introduced in, orbe enacted by any governmental body, department or agency of the State, or a decision by any court of competent jurisdiction within the State shall be rendered which materially adversely affects the market price of the 2006 Bonds; or (iv) a stop order, ruling, regulation or Official Statement by, or on behalf of, the Securities and Exchange Commission or any other governmental agency having jurisdiction of the subject matter shall be issued or made to the effect that the issuance, offering or sale of obligations of the general character of the 2006 Bonds, or the issuance, offering or sale of the 2006 Bonds, including all underlying obligations, as contemplated hereby or by the Official Statement, is in violation or lEMRDA BPAk.wpdJMC/ 7 would be in violation of any provision of the federal securities laws, including the Securities Act of 1933, as amended and as then in effect, or that the Indentures need be qualified under the Trust Indenture Act of 1939, as amended and as then in effect; or (v) legislation shall be enacted by the Congress of the United States of America, or a decision by a court of the United States of America shall be rendered, to the effect that obligations of the general character of the 2006 Bonds, or the 2006 Bonds, are not exempt from registration under or other requirements of the Securities Act of 1933, as amended and as then in effect, or the Securities Exchange Act of 1934, as amended and as then in effect, or that the Indentures are not exempt from qualification under or other requirements of the Trust Indenture Act of 1939, as amended and as then in effect; or (vi) additional material restrictions notin 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 trade the 2006 Bonds; or (vii) a general banking moratorium shall have been established by federal or State authorities; or (viii) the United States of America has become engaged in hostilities which have resulted in a declaration of war or a national emergency or there has occurred any other outbreak 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 of America, being such as, in the reasonable opinion of the Underwriter, would affect materially and adversely the ability of the Underwriter to market the 2006 Bonds (it being agreed by the Underwriter that there is no outbreak, calamity or crisis of such character as of the date hereof); or (ix) the rating on any bonds, notes or other obligations of the Agency shall have been downgraded, suspended or withdrawn by a national rating service, which, in the Underwriter's reasonable opinion, materially adversely affects the market price of the 2006 Bonds; or (x)the commencement of any action, suit or proceeding described in paragraph 5(k) hereof, which, in the reasonable judgment of the Underwriter, materially adversely affects the market price of the 2006 Bonds. (f) At or prior to the Closing, the Underwriter shall receive with respect to the 2006 Bonds (unless the context otherwise indicates) the following documents: (i) Bond Opinion. The approving opinion of Bond Counsel to the Agency, dated the date of the Closing and substantially in the form included as Appendix D to the Official Statement, together with a letter from such counsel, dated the date of the Closing and addressed to the Underwriter, to the effect that the foregoing opinion addressed to the Agency may be relied upon to the same extent as if such opinion were addressed to them. (ii) Supplemental Opinion. A supplemental opinion or opinions of Bond Counsel addressed to the Underwriter, dated the date of the Closing to the following effect: lEMRDA BPAk.wpdJMC/ 8 (A) the 2006 Bonds are notsubject to theregistrationrequirements of the Securities Act of 1933, as amended, and the Indentures are exempt from qualification pursuant to the Trust Indenture Act of 1939, as amended; (B) this Bond Purchase Agreement has been duly executed and delivered by the Agency and the Authority and (assuming due authorization, execution and delivery by and validity against the Underwriter) is a valid and binding agreement of the Agency and the Authority, except as enforcement thereofmay be limited by bankruptcy, insolvency or other laws affecting enforcement of creditors' rights and by the application of equitable principles if equitable remedies are sought; and (C) the statements contained in the Official Statement under the captions, "INTRODUCTION," "THE 2006 BONDS," (except for information relating to the Depository Trust Company and the book-entry system for registration of the 2006 Bonds) "SECURITY FOR THE 2006 BONDS," and "T AXMATTERS," and in Appendices A and D are accurate, insofar as such statements expressly summarize certain provisions of the 2006 Bonds, the Continuing Disclosure Certificate, or the Indentures and the opinion attached as Appendix D to the Official Statement; provided that Bond Counsel need not express any opinion with respe ct to any financial or statistical information contained therein. (iii) Agency Counsel Opinion. An opinion of the City Attorney, as Counsel to the Agency, dated the date of the Closing and addressed to the Underwriter, to the following effect: (A) the Agency is a public body, corporate and politic, duly organized and validly existing under the laws of the State of California; (B) the Resolution of the Agency approving and authorizing the execution and delivery of the 2006 Bonds, the Continuing Disclosure Certificate, the Indentures and this Bond Purchase Agreement and approving the Official Statement has been duly adopted at a meeting of the governing body of the Agency, which was called and held pursuant to law and with all public notice required by law and at which a quorum was present and acting throughout and the Resolution is in full force and effect and has not been modified, amended or rescinded; (C) the information in the Official Statement with respect to the Agency and the Project Area is fair and accurate and nothing has corne to the attention of such counsel which would lead it to believe that such information (excluding therefrom the financial and statistical data and forecasts included therein as to which no opinion need be expressed) contains any untrue statement of a material fact or omits to state a material fact necessary to make the statements therein, in light of the circumstances under which they were made, not misleading; (D) to the best of such counsel's knowledge, except as otherwise disclosed in the Official Statement, there is no litigation or proceeding, pending and served, or threatened, challenging the creation, organization or existence of the Agency, or the validity of the 2006 Bonds, this Bond Purchase Agreement, the Continuing Disclosure Certificate or the Indentures, or seeking to restrain or enjoin any of the transactions referred to therein or contemplated thereby, or under which a determination adverse to the Agency would have a material adverse effect upon the Agency's ability to pay principal of and interest on the lEMRDA BPAk.wpdJMC/ 9 2006 Bonds when due, or which, in any manner, questions the right of the Agency to issue the 2006 Bonds or to use the Tax Increment Revenues for repayment of the 2006 Bonds or affects in any manner the right or ability of the Agency to collect or pledge the Tax Increment Revenues or the lien priority thereof; (E) no authorization, approval, consent or other order of the State, any local agency of the State or the City, other than such authorizations, approvals and consents which have been obtained, is required for the valid authorization, execution and delivery by the Agency of the Financing Documents or the 2006 Bonds and the authorization and distribution of the Preliminary Official Statement and the Official Statement (provided that no opinion need be expressed as to any action required under State securities or "blue sky" laws in connection with the purchase or distribution of the 2006 Bonds by the Underwriter); (F) the Agency is not in breach of or default under any applicable law or administrative regulation of the State or any applicable judgment or decree or any loan agreement, trust agreement, certificate, resolution, agreement or other instrument to which the Agency is a party, or is otherwise subject, which breach or default would materially adversely affect the Agency's ability to enter into or perform its obligations under the Financing Documents and no event has occurred and is continuing which, with the passage of time or the giving of notice, or both, would constitute a default or an event of default under any such instrument and which would materially adversely affect the Agency's ability to enter into or perform its obligations under the Financing Documents or the 2006 Bonds; (G) except as described in the Official Statement, interest on the 2006 Bonds and costs of issuance are not includable in the calculation of the limitations under the 1991 Settlement Agreement (as defined in the Official Statement); and (H) except as described in the Official Statement with respect to Pass-Through Agreements and the Owner Participation Agreement between the Agency and Advanced Cardiovascular Systems, Inc., no obligations of the Agency have a priority to or are on parity with the Agency's pledge of Tax IncrementRevenues to payment of the 2006 Bonds and the Agency's outstanding [Multifamily Housing RevenueBonds, issued April 25, 1996, and the loan from Washington Mutual Bank, F.A.] are not payable from Tax Increment Revenues. The Agency entered an Owner Participation Agreement between the Agency and International Rectifier Corporation ("International Rectifier"), on December 9, 1997 and amended on December 15, 1998. Pursuant to the agreement, the Agency notified InternationalRectifier on April 23, 2002, that the agreement was terminated. International Rectifiernever satisfied the requirements of the agreement andno payments were ever made by the Agency pursuant to the agreement. (iv) Agency Certificate. A certificate of the Agency, dated the date of the Closing, sigued on behalf of the Agency by the Executive Director or other duly authorized officer of the Agency to the effect that: (A) the representations and warranties of the Agency contained herein and in the Indentures and the Continuing Disclosure Certificate are true and correct in all material respects on and as of the date of the Closing as if made on the date of the Closing; and lEMRDA BPAk.wpdJMC/ 10 (B) no event affecting the Agency has occurred since the date of the Official Statementwhich has not been disclosed therein, or in any supplement or amendment thereto, which event should be disclosed in the Official Statement in order to make the statements therein, in the light of the circumstances under which they were made, not misleading. (v)Authority Certificate. A certificate of the Authority, dated the date of the Closing, sigued on behalf of the Authority by the Executive Director or other duly authorized officer of the Authority to the effect that: (A) the representations and warranties of the Authority contained herein are true and correct in all material respects on and as of the date of the Closing as if made on the date of the Closing; and (B) no event affecting the Authority has occurred since the date of the Official Statementwhich has not been disclosed therein, or in any supplement or amendment thereto, which event should be disclosed in the Official Statement in order to make the statements therein, in the light of the circumstances under which they were made, not misleading. (vi) Disclosure Counsel Opinion. An opinion, dated the date of the Closing and addressed to the Agency and to the Underwriter, of McFarlin & Anderson LLP ("Disclosure Counsel"), stating that without having undertaken to determine independently the accuracy, fairness, or completeness of the statements contained in the Official Statement, and based upon its participation in the preparation of the Official Statement no information carne to the attention of the attorneys in its firm rendering legal services in connection with such representation which cause such firm to believe that, as of the date of the Official Statement or as of the date of the Closing (exceptfor any financial, statistical, economic or engineering data or forecasts, numbers, charts, tables, graphs, estimates, projections, assumptions or expression of opinion, any information about valuation, archaeological or environmental matters, the Appendices thereto or any information about debt service requirements, book-entry, The Depository Trust Company, the Municipal Bond Insurer and its Municipal Bond Insurance Policy (each as hereinafter defined) or tax exemption included therein, as to which no opinion need be expressed) contained any untrue statement of a material fact or omitted 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. (vii) Trustee's Certificate. A Certificate, dated the date of Closing addressed to the Agency and the Underwriter, to the following effect: (A) The Trustee is a national banking association duly organized and validly existing under the laws of the United States of America; and (B) The Trustee has full power, authority and legal right to comply with the terms of the Indentures and to perform its obligations stated therein. (viii) Opinion of Counsel to TrWitee. An opinion of Counsel to the Trustee, to the effect that: (A) The Trustee has been duly organized and is validly existing and in good standing, with full corporate power to undertake the trust duties and obligations under the Indentures and the Continuing Disclosure Agreement. lEMRDA BPAk.wpdJMC/ 11 (B) The Trustee has duly authorized, executed and delivered the Indentures, and by all proper corporate action has authorized the acceptance of the duties and obligations of the Trustee under the Indentures and to authorize in such capacity the authentication and delivery of the 2006 Bonds. (C) Assuming due authorization, execution and delivery of the Agency, the Indentures constitute the valid, legal and binding agreements of the Trustee, enforceable in accordance with their respective terms, except as such enforcement may be limited by bankruptcy, insolvency, reorganization or other similar laws affecting the enforcement of creditors' rights in general and by general equity principles (regardless of whether such enforcement is considered in a proceeding in equity or at law). (D) Exclusive of federal or State securities laws and regulations, to the best of such counsel's knowledge after reasonable inquiry and investigation, other than routine filings required to be made with govemmental agencies in order to preserve the Trustee's authority to perform a trust business (all of which routine filings such counsel believes, after reasonable inquiry and investigation, to have been made), no consent, approval, authorization orother action by any governmental orregulatory authority havingjurisdiction overthe Trustee is or will be required for the authentication by the Trustee of the Indentures or the execution and delivery of the 2006 Bonds. (ix) Certain Financing Documents. An executed copy of each Indenture and the Continuing Disclosure Certificate. (x) City Resolution. A certified copy of the City Resolution adopted by the City Council and certified by the City Clerk or Assistant City Clerk of the City Council approving issuance of the 2006 Bonds. (xi) Agency Resolution. A certified copy of the Agency Resolution adopted by the Agency and certified by the Secretary or Assistant Secretary of the Agency authorizing the execution and delivery of the Indentures, this BondPurchase Agreement and the Continuing Disclosure Certificate. (xii) Authority Resolution. A certified copy of the Authority Resolution adopted by the Authority and certified by the Secretary or Assistant Secretary of the Authority authorizing the execution and delivery of the Indentures, this Bond Purchase Agreement and the Continuing Disclosure Certificate. (xiii) Form 8038-G. Evidence that the federal tax information Form 8038-G has been prepared for filing. (xiv) Letter of Representations. A certified copy of the Letter of Representations by the Agency to DTC. (xv) Official Statement. An executed copy of the Official Statement. (xvi) Preliminary Official Statement An executed certificate, dated as of the date of the Preliminary Official Statement, of the Agency in a form acceptable to the Underwriter relating to Rule 15c2-12. lEMRDA BPAk.wpdJMC/ 12 (xvii) Rating. Evidence that Standard & Poor's Ratings Services has issued a rating of "AAA" on the Series A Bonds. (xviii) Tax Certificate. An Arbitrage Certificate relating to the 2006 Bonds in form satisfactory to Bond Counsel. (xix) Bond Insurance Policy. A policy of municipal bond insurance relating to the Series A Bonds (the "Municipal Bond Insurance Policy") issued by [ Corporation] (the "Municipal Bond Insurer"). (xx) Opinion of Counsel to the Municipal Bond Insurer. An opinion of counsel to the Municipal Bond Insurer, dated the date of the closing, addressed to the Agency and the Underwriter in a form reasonably acceptable to the Agency and the Underwriter. (xx) Certificate of Fiscal Consultant. A certificate, dated the date of the closing, addressed to the Agency and the Underwriter in a form reasonably acceptable to the Agency and the Underwriter. (xxii)Additional Documents. Such additional certificates, instruments and other documents as the Underwriter, Bond Counselor Disclosure Counsel may reasonably deem necessary to evidence the truth and accuracy as of the time of the Closing of the representations of the Agency and the due performance or satisfaction by the Agency at or prior to such time of all agreements then to be performed and all conditions then to be satisfied by the Agency. If the Agency shall be unable to satisfy the conditions contained in this Bond Purchase Agreement, or if the obligations of the Underwriter shall be terminated for any reason permitted by this Bond Purchase Agreement, this Bond Purchase Agreement shall terminate and neither the Underwriter nor the Agency shall be under further obligation hereunder, except as further set forth in Section 9 hereof. 8. Certain Covenants After the Closing: (a) The Agency will not adopt any amendment of or supplement to the Official Statement to which, after having been furnished a copy, the Underwriter shall reasonably object in writing and if any event relating to or affecting the Agency or the Project Area shall occur as a result of which it is necessary, in the opinion of 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 the Underwriter, the Agency shall cause to be forthwith prepared and furnished to the Underwriter (at the expense of the Agency) a reasonable number of copies of an amendment of or supplement to the Official Statement (in form and substance satisfactory to the Underwriter) that will amend or supplementthe Official Statement so that it will not contain an untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances existing at the time it is delivered to the purchaser, not misleading; and (b) The Agency shall not knowingly take or omit to take, as is appropriate, any action which would adversely affect the exclusion from gross income under federal tax law of the interest on the 2006 Bonds or which would cause the 2006 Bonds to become arbitrage bonds under Section 148 of the Code and the regulations thereunder. lEMRDA BPAk.wpdJMC/ 13 9. Fxpenses All expenses and costs of the Agency incident to the performance of their obligations hereunder and in connection with the authorization, execution, sale and delivery of the 2006 Bonds to the Underwriter, including any printing costs, fees of the Trustee, the Dissemination Agent,rating agency fees, fees and expenses of consultants, fees and expenses of Bond Counsel, fees and expenses of Disclosure Counsel, fees and expenses of counsel to the Agency and the City, and bond insurance and surety policy premiums shall be paid from the Bond proceeds or in the event that2006 Bonds are not issuedfor any reason, shall be paid by the Agency. All costs and expenses of the Underwriter, including travel, "blue sky" expenses, fees and expenses assessed upon the Underwriter with respect to the 2006 Bonds by the Municipal Securities Rulemaking Board or the National Association of Securities Dealers, CUSIP@ Service Bureau charges, CDIAC fees and advertising expenses shall be paid by the Underwriter. 10. Survival of Certain Reoresentations and Obli!!ations. The respective agreements, covenants, representations, warranties and other statements of the Agency of each of its officials, partuers or officers set forth in or made pursuant to this Bond Purchase Agreement shall survive delivery of and payment for the 2006 Bonds remains outstanding under the Indentures, regardless of any investigation, or statements as to the results thereof, made by or on behalf of the Underwriter. II. Notice. Any notice or other communication to be given to the Agency under this Bond Purchase Agreement may be given by delivering the same in writing to the Agency, addressed as follows: Redevelopment Agency of the City of Temecula, 43200 Business Park Drive, Temecula, California 92590, Attention: Ms. Genie Roberts, Director of Finance. 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 90071-3338, Attention: Public Finance. 12. Fntire Agreement This Bond Purchase Agreement, when accepted by the Agency, shall constitute the entire agreement between the Agency and the Underwriter and is made solely for the benefit of the Agency and the Underwriter (including the successors or assigus of the Underwriter). No other person or entity shall acquire or have any right hereunder by virtue hereof, except as expressly provided herein. 13. Countetparts This Bond Purchase Agreement may be executed by the parties hereto in separate counterparts, each of which when so executed and delivered shall be an original, but all such counterparts shall together constitute but one and the same instrument. 14. Severabilitv. 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. 15. California Law Governs. The validity, interpretation and performance of this Bond Purchase Agreement shall be governed by the laws of the State applicable to contracts made and performed in the State. lEMRDA BPAk.wpdJMC/ 14 16. No Assignment The rights and obligations created by this Bond Purchase Agreement shall not be subject to assignment by the Underwriter or Agency without the prior written consent of the other parties hereto. STONE & YOUNGBERG LLC By Authorized Representative Accepted as of the date first stated above: REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA By Name: Shawn Nelson Title: Executive Director TEMECULA PUBLIC FINANCING AUTHORITY By Name: Shawn Nelson Title: Executive Director EXHIBIT A REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA TEMECULA REDEVELOPMENT PROJECT NO.1 2006 TAX ALLOCATION BONDS, SERIES A Maturity Date 8/1/2007 8/1/2008 8/1/2009 8/1/2010 8/1/2011 8/1/2012 8/1/2013 8/1/2014 8/1/2015 8/1/2016 8/1/2017 8/1/2018 8/1/2019 8/1/20 8/1/20 8/1/20 MATURITY SCHEDULE Amount $ Rate Yield Price % % $ A-I lEMRDA BPAk.wpdJMC/ REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA TEMECULA REDEVELOPMENT PROJECT NO.1 2006 TAX ALLOCATION BONDS, SERIES B (SUBORDINATE LIEN) MATURITY SCHEDULE Maturity Date Amount Rate Yield Price 12/15/2007 $ 12/15/2008 12/15/2009 12/15/2010 12/15/2011 12/15/2012 12/15/2013 12/15/2014 12/15/2015 12/15/2016 12/15/2017 12/15/2018 12/15/2019 12/15/20 12/15/20 12/15/20 % % $ lEMRDA BPAk.wpdJMC/ A-2 EXHIBIT B RULE 15c2-12 CERTIFICATE ,2006 Stone & Youngberg LLC 515 South Figueroa Street, Suite 1060 Los Angeles, California 90071-3338 Re: Redevelopment Agency of the City of Temecula Temecula Redevelopment Project No.1 2006 Tax Allocation Bonds, Series A and 2006 Tax Allocation Bonds. Series B (Subordinate Lien) Ladies and Gentlemen: You have been engaged by the Redevelopment Agency of the City of Temecula (the "Agency"), to act as the underwriter in connection with the sale of the Redevelopment Agency of the City ofTemecula Temecula Redevelopment Project No. I 2006 Tax Allocation Bonds, Series A (the "Series A Bonds"), in the aggregate principal amount of $ and its 2006 Tax Allocation Bonds, Series B (Subordinate Lien) (the "Series B Bonds," collectively, the "2006Bonds") in the aggregate principal amount of$ . For purposes of Rule 15c2-12 of the Securities and Exchange Commission ("Rule 15c2- 12"), the undersigued hereby certifies on behalf of the Agency that the Preliminary Official Statement is deemed final, in accordance with Rule 15c2-12 as of its date except for the omission of certain matters which may be omitted under Rule 15c2-12 (including interest rates, redemption prices and dates, ratings, and related information). Very truly yours, REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA By: Name: Shawn Nelson Title: Executive Director lEMRDA BPAk.wpdJMC/ B-1 PUBLIC HEARING ITEM NO. 43 Approvals City Attorney Director of Finance City Manager V /JIZ ~ CITY OF TEMECULA AGENDA REPORT TO: City Manager/City Council FROM: Debbie Ubnoske, Director of Planning DATE: November 14, 2006 SUBJECT: Appeal of Planning Commission Approval of Planning Application No. PA06-0213, a Development Plan with a Conditonal Use Permit for the development of a water park located on 15.4 acres at the northwest corner of Ynez Road and County Center Drive consisting of pools, slides, and other types of water rides, concession stands, gift shop, party room, changing room with lockers, restrooms, picnic areas, service yard, and a 433 space parking lot. PREPARED BY: Christine Damko, Associate Planner RECOMMENDATION: That the City Council: 1. Adopt a resolution entitled: RESOLUTION NO. 06- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA DENYING THE APPEAL OF THE PLANNING COMMISSION APPROVAL OF PLANNING APPLICATION NO. PA06-0213, DEVELOPMENT PLAN WITH A CONDITIONAL USE PERMIT FOR THE DEVELOPMENT OF A WATER PARK LOCATED ON 15.4 ACRES LOCATED AT THE NORTHWEST CORNER OF YNEZ ROAD AND COUNTY CENTER DRIVE BACKGROUND: The Temecula Water Park was reviewed and approved by the Planning Commission on October 18, 2006. At this Planning Commission meeting, several members of the Harveston community spoke and raised concerns with respect to land use compatibility, noise, and traffic. In addition staff received a number of e-mails and letters from business owners who are members of the Rancho California Corporate Park Association. The concerns raised by business owners were primarily inconsistency with the Rancho California Corporate Park CC&R's, concerns about overflow parking impacting their business and traffic. In terms of the land use incompatibility, staff noted that several recreational uses currently exist in the area of the proposed project. Those recreational uses included Gold's Gym, Harveston Sports Park and Harveston Lake. With respect to the noise concern, a Noise Study was prepared and the study determined that the project falls within the City's General Plan allowable noise standards. A Traffic Study was also prepared and reviewed by the Public Works Department. The project has been conditioned to provide improvements to mitigate its impacts. In addition, the water park will only operate four months out of the year. Planning Commission Action: The Planning Commission moved to approve the project with a vote of 5-0, subject to the addition of the following conditions: . The applicant shall work with the City of Temecula to try to provide park and ride spaces during the months when the water park is not operational. . All signage shall be approved by the Planning Commission. . The site plan shall be revised to include an additional pedestrian emergency access in the center of the park along the southern property line. Appeal On November 1, 2006, an appeal was filed by Maury Alcheck. Mr. Alcheck provided the following justifications for filing the appeal: . The water park project is inconsistent with the Rancho California Corporate Park Association CC&R's, which the subject property is a part of. . Increase in young people in the immediate area, which will increase the potential for crime and vandalism for businesses. . The water park parking fee will encourage customers to park in surrounding business owners parking lots and walk to the park. . Increase in traffic in immediate area will strongly affect business employees and Harveston residents. Response to the Appeal The majority of the appeal focuses on compliance with the Rancho California Corporate Park CC&R's. Since these regulations are a private matter between the land owners and the Association, the City does not have the authority to regulate this document. The City has reviewed this project and has determined that it is consistent with the General Plan, Development Code, City-Wide Design Guidelines, and is in compliance with the California Environmental Quality Act (CEQA). The appellant is concerned about the "potential increase of young people hanging out in the immediate area, when they are not at the water park." The appellant feels that young people (typically minors) are most likely to ride skateboards, bikes, and roller blades and will "engage in graffiti, vandalism, and other crimes." Although staff agrees that there will be an increase in young people coming to the immediate area for the water park, there is no evidence that these people will hang around outside of the park and induce crime. Additionally, staff believes that the water park will provide young people with a safe and fun recreational outlet in a structured setting that will deter adolescent crime and vandalism. The appellant's property is located adjacent to the northern property line of the project site. A portion of the appellant's parking and access driveway is located within the boundary of the water park property. The appellant is concerned that park customers will park on adjacent parking lots (including his parking lot) and walk to the water park to avoid the nominal parking fee that the water park will charge. The water park applicant has stated that through their experience with the operations of other water parks, people usually come to water parks with beach towels, beach bags, and other water items while wearing their bathing suit. People do not want to walk a long distance in their bathing suit while carrying these items. The appellant stated concerns regarding site access and traffic. The access to the project site has been reviewed by the Fire Department and Department of Public Works. Both departments have determined that there is adequate onsite circulation and access for vehicles and emergency vehicles. With regard to traffic, the traffic study prepared for the project indicated that all intersections would function at level of service (LOS) D or better during peak hours with the exception of the intersections forecasted to operate at an unacceptable LOS without the project, and will continue to do so with the addition of project traffic. The project will contribute to intersections already operating at a deficient LOS, but will not cause any intersection to worsen to an unacceptable LOS, or to fall to a lower LOS. The proposed water park is anticipated to generate average weekday entering vehicles of 630 over the course of the day, for a total of 1 ,260 trips. Average Saturday entering vehicles is 802 vehicles, for a total daily trip generation of 1,604 trips. The project site is currently zoned Service Commercial. The Service Commercial designation would allow many different types of development, including office and retail uses. Assuming the Target Floor Area Ration of .30, the 15.4 acre site could be developed with up to 201 ,247 square feet of commercial or office uses. An office use would bring 2,216 daily weekday trips/83 weekend trips and a department store could bring in 11,274 daily weekday trips/1 ,008 weekend trips per day. Therefore, the proposed water park use would generate less traffic each day during the peak hours (additionally, the water park does not open until 1 0:00 a.m.) than most other uses, since any other type of development would typically be open 5 to 7 days a week, 52 weeks a year. The proposed water park is anticipated to generate significantly less traffic on an annual basis than any other allowed use. The City's General Plan has established the project zoning as Service Commercial. The water park is permitted in the Service Commercial zone based on the standards contained in the City's Development Code, which includes approval of a Conditional Use Permit. Therefore, the City's General Plan and zoning anticipated the permitted uses allowed and have planned for infrastructure to also be consistent with the allowed uses. The site is properly planned and zoned, and as conditioned, is physically suitable for the proposed water park. In addition, staff has found the proposed water park is not detrimental to the health, safety, or general welfare of the community. The project, as conditioned, is consistent with other applicable requirements of state law and local ordinances, including the California Environmental Quality Act (CEQA), and all applicable fire an d building codes. FISCAL IMPACT: None. ATTACHMENTS: CC Resolution No. 06-_ Appeal Minutes from the October 18, 2006 Planning Commission Hearing Planning Commission Staff Report for October 18, 2006 RESOLUTION NO. 06- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA DENYING THE APPEAL AND UPHOLDING THE DECISION OF THE PLANNING COMMISSION OF THE CITY OF TEMECULA TO APPROVE PLANNING APPLICATION NO. PA06-0213, A DEVELOPMENT PLAN WITH A CONDITIONAL USE PERMIT FOR A WATER PARK LOCATED ON 15.4 ACRES AT THE NORTHWEST CORNER OF YNEZ ROAD AND COUNTY CENTER DRIVE 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. Joshua Hunter representing Clearwater Waterpark Development filed Planning Application No. PA06-0213, in a manner in accord with the City of Temecula General Plan and Development Code. B. Planning Application No. PA06-0213 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. PA06-0213 on October 18, 2006 at 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. PA06-0213 on November 14, 2006 at duly noticed hearings 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. Findinqs. The City Council, in approving Planning Application No. PA06-0213 (Development Plan with a Conditional Use Permit) hereby makes the following findings as required by Section 17.05.01 OF of the Temecula Municipal Code. Conditional Use Permit (Code Section 17.04.010. E) A. The proposed conditional use is consistent with the General Plan and the Development Code; The proposed Water Park is permitted in the Service Commercial zone based on the standards contained in the City's Development Code, which includes approval of a Conditional Use Permit. The site is properly planned and zoned, and as conditioned, is physically suitable for the proposed Water Park. The project, as conditioned, is also consistent with other applicable requirements of state law and local ordinances, including the California Environmental Quality Act (CEQA), and all applicable fire and building codes. B. The proposed conditional use is compatible with the nature, condition and development of adjacent uses, buildings and structures and the proposed conditional use will not adversely affect the adjacent uses, buildings, or structures; The proposed Water Park is consistent with the surrounding uses and structures and will not adversely impact the existing buildings and uses because recreational uses already exist in the area. Immediately adjacent to the southern property line is Gold's Gym, a recreational workout facility open to the public. Less than one mile north of the project site is the Harveston Sports park, a public recreational facility which includes soccer fields and baseball fields. Approximately four miles east of the project site is the Harveston Community Park, a recreational lake with associated trails for City residents. In addition, the Water Park will only be open approximately four months of the calendar year, which will greatly reduce the impact to businesses immediately adjacent to the project. With existing recreational uses already existing in the area and the short term operation season, the Water Park will not adversely affect adjacent uses or structures. C. The site for a proposed conditional use is adequate in size and shape to accommodate the yards, walls, fences, parking and loading facilities, buffer areas, landscaping, and other development features prescribed in this Development Code and required by Planning Commission or Council in order to integrate the use with other uses in the neighborhood; The project proposes a 13,000 square foot Water Park on 15 acres and is considered a relatively smaller project compared to existing Water Parks in California. The Water Park meets all Development Code regulations in regards to floor area ratio, lot coverage, setbacks, height regulations, and parking regulations. Over 30% of the site will be landscaped, which exceeds the required 20%. D. The nature of the proposed conditional use is not detrimental to the health, safety and general welfare of the community; The project has been reviewed for compliance with the Development Code, Uniform Building Code (UBC), and Fire Prevention Code for compliance with all applicable requirements. Staff has found the proposed Water Park is not detrimental to the heath, safety, or general welfare of the community. In addition, Fire Prevention has reviewed the circulation and drive aisle widths and has determined that the site will be able to be adequately served by the Fire Department in an emergency situation. Development Plan (Code Section 17.05.01 OF) A. The proposed use is in conformance with the General Plan for Temecula and with all applicable requirements of state law and other ordinances of the City; The proposed Water Park is permitted in the Service Commercial zone based on the standards contained in the City's Development Code, which includes approval of a Conditional Use Permit. The site is properly planned and zoned, and as conditioned, is physically suitable for the proposed Water Park. The project, as conditioned, is also consistent with other applicable requirements of state law and local ordinances, including the California Environmental Quality Act (CEQA), and all applicable fire and building codes. B. The overall development of the land is designed for the protection of the public health, safety, and general welfare; The overall design of the Water Park, including the site, buildings, parking, circulation, and other associated site improvements, is consistent with, and intended to protect the health and safety of those living and working in and around the site. The project has been reviewed for, and as conditioned, has been found to be consistent with the City's General Plan, Development Code, Building Code, and Fire Prevention Codes to ensure that the development will be constructed and function in a manner consistent with the public health, safety, and welfare. Section 3. Environmental Compliance. The City Council hereby makes the following environmental findings and determinations in connection with the approval of the Project: A. Pursuant to California Environmental Quality Act ("CEQA") and the City's local CEQA Guidelines, City staff prepared an Initial Study of the potential environmental effects of the approval of the Project as described in the Initial Study (the "Project"). Based upon the findings contained in that Study, City staff determined that there was no substantial evidence that the Project could have a significant effect on the environment and a Mitigated Negative Declaration was prepared. B. Thereafter, City staff provided public notice of the public comment period and of the intent to adopt the Mitigated Negative Declaration as required by law. Copies of the documents have been available for public review and inspection at the offices of the Department of Community Development, located at City Hall, 43200 Business Park Drive, Temecula, California 92589. C. The City Council has reviewed the Mitigated Negative Declaration and all comments received regarding the Negative Declaration prior to and at the June 26, 2006 public hearing, and based on the whole record before it, finds that: (1) the Negative Declaration was prepared in compliance with CEQA; (2) there is no substantial evidence that the Project will have a significant effect on the environment; and (3) the Negative Declaration reflects the independent judgment and analysis of the City Council. D. Based on the findings set forth in this Resolution, the City Council hereby adopts the Mitigated Negative Declaration prepared for the Project. The Director of Community Development is authorized and directed to file a Notice of Determination in accordance with CEQA. Section 4. Conditions. That the City Council of the City of Temecula hereby denies the appeal and approves Planning Application No. PA06-0213 (Development Plan with a Conditional Use Permit), 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 14th day of November, 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 14th day of November, 2006, by the following vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: ABSTAIN: COUNCIL MEMBERS: Susan W. Jones, MMC City Clerk =:;;~". - Ynez Business Center, LLC 26111 Yn.~~ Road T emecula,Cal1fiJmia 92591 (650) 949-2660 Fax: (650) 949-2663 October 31, 2006 City of Temecula City Council c/o Ms. Christine Damko Associate Planner 43200 Business Park Drive Temecula, California 92590 Via Overnight Delivery Re: Planning Application No. PA06-0213 Proposed Temecula Water Park Dear City Council: We own the two multi-tenant flex buildings immediately adjacent to the north and east of the proposed project. In fact, the proposed project wraps around the side and back of our property. As I am sure you aware, as a result of the presence of Ms. Catherine Damko at the recent Rancho California Corporate Park Association meeting, all of the adjacent property owners, including us, are strongly opposed to the proposed project. As described in greater detail below, our opposition to the proposed project is based on both its clear violation of the restrictions and protections contained in the CC&R's governing the property and on the significant, negative impact it will have on surrounding business owners, employers, property owners, residents of Harveston, and local motorists on the affected roads. As you probably know, the subject property, our property, and the other proximate properties are encumbered by the Declaration of Protective Covenants for Rancho California Corporate Park (the "CC&R's") describing in considerable detail a set of restrictions and protections that run with the land and which were recorded and well established long before the subject property owner purchased the subject property twelve years ago. Article 8.1 of the CC&R's place significant restrictions upon the permitted uses allowed in the business park. This clause makes clear that any lot subject to the CC&R's may only be used for quality industrial park developments or "such retail and commercial operations, as may be of service to, and in harmony with, a quality industrial park development." There is no reasonable interpretation under which a water amusement park fits within this definition of a permitted use under the CC&R's. City of Temecula City Council c/o Ms. Christine Damko~~- Re: Planning Application No. PA06~.a- Proposed Temecula Water Park October 31, 2006 Page 2 of 5 The CC&R's also contain specific prohibitions against causing or creating a nuisance to other property in the Park. The term nuisance is defined to include anything that is unreasonably objectionable, unsightly or detrimental to others in any manner and due to any cause. As you may know, there were strict restrictions imposed on all of the existing building owners in the Park (e.g. all roof top mechanical equipment had to be screened from view from the street and adjacent lots, all trash receptacles had to be completely stored within trash enclosures that matched the buildings in design, even all down spouts on the front of the buildings had to be internal so they would not be visible from the street or adjacent properties). There is no question that the sight of a large water park extending well up into the sky is an unsightly nuisance that is not consistent with the restrictions imposed on all of the other existing property owners. It is also clear that the noise emanating from screaming children and adolescents who are enjoying the features of a water amusement park will constitute a sound nuisance to adjacent businesses. As pointed out by the outside architectural consultant for the Association's Architectural Review Committee (the "Committee") in his September 18,2006, the Development Regulations of theCC&R's require that all operations/activities shall be completely contained within a structure. No exterior operations/activities of any type are allowed on any site. Given the nature of the applicant's proposed use, there is no way to reconcile the proposed use with this requirement. The CC&R's explicitly prohibit the Committee from granting any variance to the restrictions described in Article 8.1 if such variance would "materially injure any of the Property or Improvements in the Park." We have already been informed by our leasing agent, by other active licensed real. estate agents in the market, and by our own tenants, that being located next to a water park would significantly impact the marketability of our project. In fact, we have already had at least one prospective tenant pass on our property and the reason he gave to our listing agent was the possibility that he might be adjacent to a water park. Since we have 45 small suites in our property, that turn over frequently, we are constantly marketing our project for lease. In fact, it is likely that we have executed close to 200 leases at that property during the 12+ years we have owned it. As a result, I believe we are well positioned to know whether or not the proposed project will negatively impact the marketability of our project. As I am sure you understand, if our property is less attractive to prospective tenants, it will negatively impact both the lease rates we are able to obtain for our space and the occupancy rates we are able to maintain. This, in turn, will directly and negatively impact the value of our property. City of Temecula City Council c/o Ms. Christine Damko=~- Re: Planning Application No. PAOBj(l21-3-- Proposed Temecula Water Park October 31, 2006 Page 3 of 5 The CC&R's of the Rancho California Corporate Park were almost certainly a condition of approval of the infrastructure development of the subject property. While these conditions were imposed by the preceding governing entity, the County of Riverside, the imposition of this type of condition is widespread and most likely the City of Temecula has imposed similar conditions to record CC&R's on other land developers. While it is not necessarily the responsibility of the City of Temecula to enforce the CC&R's of the Rancho California Corporate Park, or any other private property restrictions, it does seem to me inappropriate for a municipality to require CC&R's as a condition of approval of a project, permit the sale of lots based on the expectation of the protections inherent in those CC&R's, and then knowingly approve a project that violates the very CC&R's that were required as a condition of the original land development. Beyond our concerns over the use itself and its incompatibility with the requirements of the CC&R's, we have numerous specific concerns regarding the design and operation of the facility. These concerns include parking and the control of parking. The operator has informed the Association that they intend to charge for parking. Without a doubt, this will result in water park customers parking in our parking lot, in the parking lots of other neighboring employers and property owners, in the public parking lot at the nearby park at Harveston, and on Ynez Road. In addition, the property owner on the south side of the proposed project informed the Association that they had been approached by the applicant regarding the possibility of utilizing their parking lot during "non-peak" hours (presumably on weekends). This is a clear indication that in its efforts to maximize its utilization of this undersized lot, the applicant has not included enough parking to meet its own expected needs. We are also concerned about the lack of a physical barrier (i.e. a wall) between our property and the proposed use. Without a barrier, there is nothing to stop people from parking in our lot and walking across to the water park. Even assuming the parking can somehow be controlled, there is no barrier to reduce the number of water park customers who trespass onto our property to skateboard, bike, roller blade, paint graffiti, vandalize, break windows, or commit other crimes. This leads to the broader concern of control of the proposed project's minor customers when they are not in the water park. By locating this project adjacent to the freeway, the operator is clearly intending to attract non-resident customers to its amusement facility. These customers, primarily the numerous unattended minors, will then be physically located in a business area that they would not otherwise enter. These are the types of - customers who are most likely to ride skateboards, bikes and roller blades, to engage in graffiti and vandalism, and to have a lower regard in general for private property than other customer profiles. These water park customers will be located in a business area City of Temecula City Council clo Ms. Christine Damko Re: Planning Application No. eAQ6-0213 Proposed Temecula Water Park October 31, 2006 Page 4 of 5 on weekdays when businesses are in operation, resulting in additional costs and liabilities to the business and property owners and additional risks to the minors. These unattended minor customers will also be there on weekends, when many businesses will not be in operation. This will undoubtedly result in vandalism, graffiti and other property damage that has not occurred during the twelve years we have owned the adjacent property. In addition, these negative impacts will be felt not only by the local business and property owners in the Rancho California Corporate Park and the Winchester Highlands Business Park, they will also be felt by the local residents at Harveston, who will find that these out-of-town customers congregate at their nearby, local public park (a park that was intended for the use of neighborhood children and families) causing the same type of concerns there. In addition, separate from the issue of whether the use is permitted by the CC&R's, based on the proposed plans submitted to the Association, it is clear the applicant has made no effort to incorporate the requirements of the Development Regulations of the CC&R's into its proposed plan. In fact, given the number of contradictions between the proposed plan and the Development Regulations, it does not appear that the Development Regulations were even considered by the architect when designing the water park. So many changes would need to be incorporated into the design in order to adhere to the requirements of the Development Regulations, I question why the plan was submitted at this stage and why the Planning Commission would consider a project that would have to be resubmitted after all of the changes required to conform to the Development Regulations are incorporated into the proposal. The final concern is the issue of traffic. . The corner of Winchester Road and Ynez Road is already one of the busiest intersections in the City. The applicant has included 445 parking spaces in its plan. That amount of additional motorists on the roads will significantly impact this intersection, particularly the wait time for motorists traveling southbound on Ynez and turning right onto Winchester in order to access or cross the freeway. This will impact the businesses and employees in our area, but also the Harveston residents who traverse this intersection to access the freeway. In addition, the location of the northerly driveway, so near to the existing southerly driveway utilized by our tenants and the Professional Golfers Career College is a problem that will impair visibility, affect the access into and out of our properties, and almost certainly result in future accidents as cars seek to exit these two properties. Just as the concerns described in this correspondence will affect the marketability and value of our property, they will directly impact each of the small local business owners who operate their businesses in our project and each of the large employers that also are located in close proximity to this proposed project. While property owners will not have much in the way of remedy if this project is approved, employers will. Their City of Temecula City Council c/o Ms. Christine Damko~' Re: Planning Application No.IiAOl).;-{)21-3 Proposed Temecula Water Park October 31, 2006 Page 5 of 5 remedy, when their current lease terms expire, is to relocate and take their jobs, their tax revenue, and their employee's spending dollars with them. It is logical to conclude that if forced to relocate as a result of the City's approval of this proposed project in what is clearly a business area, with .strict private property restrictions to ensure that it remains a business area, not many of them would be inclined to relocate to other locations in TemEl,cula. For all these reasons, the existence of strict Ce&R's that prohibit the proposed use in the proposed location, the significant negative impact on adjacent businesses, employers, and property owners, the strong possibility of significant Temecula employers relocating ouf. of Temecula as a result of this project, the negative impact on the Harvestoncommunity from the out-of-town customers and traffic, as well as potential procedural and substantiv.e-CEQA violations, we appeal the Planning Commission decision and strongly encourage the City Council to reject Planning Application No. PA06-0213. Sincerely, ;t(~je~ Maury Alcheck Chief Financial Officer MJA:ba MINUTES OF A REGULAR MEETING OF THE CITY OF TEMECULA PLANNING COMMISSION OCTOBER 18, 2006 CALL TO ORDER The City of Temecula Planning Commission convened in a regular meeting at 6:00 p.m., on Wednesday, October 18, 2006, in the City Council Chambers of Temecula City Hall, 43200 Business Park Drive, Temecula, California. Chairman Guerriero thanked Ms. Craig for the prelude music. ALLEGIANCE Chairman Guerriero led the audience in the Flag salute. ROLL CALL Present: Commissioners: Carey, Telesio, Harter, Chiniaeff, and Chairman Guerriero. Absent: None. PUBLIC COMMENTS No public comments. CONSENT CALENDAR 1 Minutes RECOMMENDATION: 1.1 Approve the Minutes of September 20, 2006. MOTION: Commissioner Chiniaeff moved to approve the Consent Calendar. Commissioner Harter seconded the motion and voice vote reflected unanimous approval. COMMISSION BUSINESS 2 Director's Hearinq Case Update RECOMMENDATION: 2.1 Receive and File Director's Hearing Update for September. It was the consensus of the Planning Commission to receive and file this report. R:\MinutesPC\101806 PUBLIC HEARING ITEMS New Items 3 Planninq Application No PA06-0213. a Development Plan and Conditional Use Permit. submitted bv Clearwater Waterpark Development. for the construction of a 13.000 square foot water park on approximatelv 15 acres consistinq of pools. slides. and other tvpes of water rides. other buildinqs and an associated parkinq lot. located at the northwest intersection of Ynez Road and Countv Center Drive By way of PowerPoint Presentation, Associated Planner Damko highlighted the following: o Location o Site Plan o Buffering/Landscaping o Architecture o Slides/Water Rides o Conditional Use o Environmental Determination In response to Commissioner Chiniaeff's query regarding CC&Rs, Assistant City Attorney Lee stated that the CC&Rs would be between the property owners and the Homeowners Association, advising that the City would not be involved. For Commissioner Telesio, Associated Planner Damko noted that the proposed project would generate less traffic than any other permitted use. At this time, the public hearing was opened. Mr. Dan Hunter, representing Clearwater Waterpark Development, offered the following comments: o That the project would be a family-oriented attraction o That the target market would be parents and children 12 years of age and younger o That the applicant would be investing over 13 million dollars in the proposed project o That the proposed property will be highly landscaped and well maintained o That it would be the opinion of the applicant that the project will have a positive impact on the community, enhancing the City of Temecula o That the admission fee would eliminate questionable characters o That the perimeter will be secured o That the applicant would be of the opinion that there will not be individuals loitering in the parking lot o That the parking lot will be monitored throughout the day o That the applicant has been sensitive to the number of parking spaces and therefore, has exceeded the City's parking standards o That the traffic resulting from the proposed project will be off peak from 10:00 a.m. to 8:00 p.m. o That water parks have evolved into the preferred form of family recreation; and that such facilities would be clean, safe and provide wholesome family interactive fun R:\MinutesPC\101806 2 o That the core of customers would be generated by the local community and would not be based on tourism o That the proposed project would work on a seasonal schedule open to the public approximately 110 days a year from Memorial Day to Labor or Day o That the attractions at the proposed water park will be safe, multirider attractions that parents and children will enjoy together o That Clearwater Development would focus on safety and family-oriented entertainment o That the pay only parking lot will be a self-contained and controlled environment o That the parking lot will be monitored by security to ensure the safety of the guests and the positive image of Splash Canyon in Temecula o That the teens of Temecula will be interested in the employment opportunities of Splash Canyon in Temecula o That the proposed project will be employing 300 youth each summer o That Splash Canyon would be a positive community partner that would make contributions to the community by providing fundraising events o That Wild Rivers Irvin has had long-term relationships with charitable organizations o That during the off-season, Clearwater Development will make the facilities available to the Temecula Fire Department and other law enforcement agencies for training purposes o That Clearwater Development would be providing a first-class, family-oriented form of recreation. For the Commission, Commissioner Telesio advised that he had an opportunity to attend a meeting with the applicant, Council Member Naggar, Director of Planning Ubnoske, and a representative of the business park. In response to Commissioner Telesio's questions, Mr. Hunter and Mr. Briggs offered the following comments: o That the rides in the park would be targeted for parents with children 12 years and younger o That the business performa would be based on Temecula and the surrounding areas, and that Splash Canyon would not be dependent on tourism o That the park will be built, managed, and maintained with the assumption that there were no parents in the park to supervise their children o That the park will be fully staffed o That an electronic locating system will be put on the kids for tracking purposes o That 15 plus fulltime employees will be maintaining the park throughout the year o That during the off-season there would not be water in any of the pools o That the applicant would consider using the parking lot for a park-n-ride during the off- season if that would be the desire of the Planning Commission o That the cost of parking will be separate from the cost of admission, but could be incorporated into one fee if necessary. For Commissioner Harter, Mr. Briggs noted the following: o That there would be park security 24 hours a day when the pools are operational; and that during the winter hours there would no night security in the park R:\MinutesPC\101806 3 o That the applicant would not anticipate to have problems in the park, but that if a problem were to arise, the applicant would take measures to provide security and resolve the problem o That in the event that the parking lot would reach its capacity, prearranged parking from another business would be an option, but that this would not be anticipated o That Splash Canyon in Temecula would not be selling alcohol on site. Referencing Commissioner Carey's queries, Mr. Hunter noted the following: o That based on a Noise Study that was prepared, the project would generate a maximum noise level of 65 dBA at the property lines with mitigation measures, which would be less than the maximum threshold limit of 70 dBA specified in the General Plan Noise Element o That the applicant will establish a noise complaint response program and will respond to any noise complaints received o That the applicant would provide its own security o That the proposed water park would be anticipated to generate significantly less traffic on an annual basis than any other allowed use o That security would be employed by adults, not teenagers. In response to Commissioner Chiniaeff's comments, Mr. Briggs noted that the applicant will be installing center islands going into Ynez Road. Mr. Briggs noted that if patrons were to park on the north side of the proposed park, the applicant would be willing to staff the area with security or construct a 7' block wall and advised that there will not be a drop-off area provided. Chairman Guerriero expressed his enthusiasm with the applicant's willingness to address any traffic or parking issues that may arise and that he would request that the signage program be brought back to the Planning Commission for review. Mr. Hunter relayed that with regard to signage, the desire would be to have freeway visibility and a monument sign that would be consistent with the City's Development Plan. Director of Planning Ubnoske noted that a Condition of Approval could be imposed to have the applicant return with its sign program for the Planning Commission to review. By way of overheads, Mr. Joshua Hunter pointed out for Commissioner Chiniaeff the various emergency exits that would be imposed on the project and noted that there would be a reciprocal parking agreement in place with an adjacent property owner. For Chairman Guerriero, Mr. Briggs noted that trauma equipment, and an Emergency Medical Technician (EMT) will be on the park premises during working hours, and advised that AED equipment will also be on site. At 7:00 p.m., the Planning Commission took a break and returned to the dais at 7:07 p.m. At this time, the public hearing was opened. The following individuals spoke in opposition to the proposed project: R:\MinutesPC\101806 4 o Mr. Tim Sommerville, Temecula o Mr. Norman Nelson, Temecula o Mr. Urs Aeberli, Temecula oMs. Jan Nelson, Temecula o Mr. Rob Leanza, Temecula o Mr. Dave Wesley, Murrieta o Ms. Vickie Walker, Temecula o Mr. Jesse Simms, Temecula The above-mentioned individuals opposed to the proposed project for the following reasons: o That the proposed water park would create a negative affect on the adjacent businesses o That although a water park would enhance the community and provide employment opportunities for the City's youth, the location would not be ideal o That the ingress and egress at the proposed site would not be adequate to accommodate the traffic that the proposed water park would create o That the proposed project would not be consistent with the surrounding area o That teenagers loitering and skateboarding in the parking lot would be of great concern o That the proposed project will create noise congestion, vandalism, and safety concerns for the adjacent businesses o That patrons of the proposed project will be parking in the parking lots of the adjacent businesses o That the proposed project will create a negative impact and a depreciation of homes for the Harveston Community. Clarifying for the speakers, Director of Planning Ubnoske noted that the proposed project would be a private project and that the City would not be participating in this project. At this time, the public hearing was closed. Further clarifying, Associate Planner Damko noted that the closest Harveston home would be located more than 1,800 feet away from the proposed project. Offering a rebuttal, Mr. Briggs noted the following: o That the price of the admission would be determined by the height of the patron o That a season price will be offered to the residents of Temecula o That the proposed project would be a local-driven amusement park, noting that only 4 percent of the patrons will come from outside of the community o That the season of the proposed water park cannot be extended; that the season would be tied to the school district's school year; and that once school is in session there would not be any patrons to attend or employees to work o That due to site limitations, the proposed park cannot be expanded. Mr. Hunter noted that the proposed project would be consistent with the General Plan, Development Code, and Design Guidelines and would encourage the Planning Commission to approve the proposed project. R:\MinutesPC\101806 5 Stating that although he would not be opposed to a water park in the City of Temecula, Commissioner Chiniaeff did express concern with the location and the traffic impacts it may have on the adjacent businesses. Commissioner Harter stated that from his personal experience with the Wild Rivers in Irvine, the water park would be a well-run, maintained facility that would provide many employment opportunities for Temecula's youth as well as provide wholesome family entertainment; and therefore, he concurred that the proposed use may create traffic, but that the traffic would be less in the four month period than it would be with any other permitted use. Concurring with Commissioner Chiniaeff's comment that the proposed project may create some traffic impacts on the adjacent businesses, Commissioner Carey stated that any other permitted use would generate more impacts on a daily basis; and relayed that he would be in favor of the proposed project, noting that it would be a benefit to the community. Referencing potential traffic impacts that may be created by the proposed project, Commissioner Telesio reiterated that the site would be zoned Service Commercial and that Sports and Recreational Facilities would be permitted with a Conditional Use Permit; that the proposed water park would be consistent with the City's General Plan, Development Code, and Design Guidelines, and would generate less traffic than any other permitted use. Commissioner Telesio also reminded the Commission that the facility would only be open from Memorial Day to Labor Day 10:00 a.m. to 8:00 p.m. Echoing Commissioner Telesio's comments, Chairman Guerriero was also of the opinion that the proposed use would be a benefit to the whole community; and that it would be a permitted use that would generate less traffic than any other permitted use. MOTION: Chairman Guerriero moved to approve staff recommendation. Commissioner Harter seconded the motion. (Following additional discussion voice vote reflected unanimous approval.) It was the consensus of the Planning Commission to impose the following on the applicant: that another emergency pedestrian gate access toward the center of the park (southerly property line); that signage be brought to the Planning Commission for review; that the applicant provide a park-n-ride on the property during its off season; and that the applicant consider an inclusive price for admission and parking. At this time, the voice vote on the previously made motion reflected unanimous approval. R:\MinutesPC\101806 6 PC RESOLUTION NO. 06-59 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF TEMECULA APPROVING PLANNING APPLICATION NO. PA 06-0213, A DEVELOPMENT PLAN AND CONDITIONAL USE PERMIT FOR THE SITE DEVELOPMENT AND CONSTRUCTION OF A 13,000 SQUARE FOOT WATER PARK ON 15.4 ACRES LOCATED AT THE NORTHWEST INTERSECTION OF YNEZ ROAD AND COUNTY CENTER DRIVE CONSISTING OF POOLS, SLIDES, AND OTHER TYPES OF WATER RIDES, CONCESSION STANDS, GIFT SHOP, PARTY ROOM, CHANGING ROOM WITH LOCKERS, RESTROOM, PICNIC AREAS, SERVICE YARD, AND PARKING LOT. THE WATER PARK WILL BE OPERATING APPROXIMATELY FOUR MONTHS OF THE CALENDAR YEAR. THE PARK WILL BE OPEN FROM MEMORIAL DAY TO LABOR DAY FROM 10:00 A.M. TO 8:00 P.M. IT IS ANTICIPATED THAT THE PARK WILL RETAIN 15 FULL TIME STAFF AND 300 SEASONAL EMPLOYEES. COMMISSIONERS' REPORTS For Commissioner Harter, Director of Planning Ubnoske advised that the colors of the windows and doors at the Hooter's restaurant would remain the same and that the columns would be repainted. In response to Commissioner Carey's question regarding the colors of Marie Calendar's Restaurant on Ynez Road and Rancho California Road, Director of Planning Ubnoske stated that the owner of the restaurant was given a choice to either repaint the restaurant to the approved color palette or leave it as is and appeal to the Planning Commission; and noted that staff has not heard the owner's response. Commissioner Carey thanked staff for the installation of a safety fence around the BJ's Restaurant on Ynez Road and also expressed concern with the amount of used RVs and boats in the parking lot of the Home Depot on SR 79 South. Referencing Commissioner Carey's concern, Director of Planning Ubnoske advised that Home Depot is not in compliance with the City's Development Code and therefore, is being charged $1,000 a day until compliance is met. The Planning Commission welcomed newly hired Junior Planner Lowrey. PLANNING DIRECTOR'S REPORT Director of Planning Ubnoske advised that the City's Principal Planner position will be opened as of Sunday, October 22, 2006. R:\MinutesPC\101806 7 ADJOURNMENT At 8:00 p.m., Chairman Guerriero formally adjourned to November 1. 2006. at 6:00 p.m., in the City Council Chambers, 43200 Business Park Drive, Temecula. Ron Guerriero Chairman Debbie Ubnoske Director of Planning R:\MinutesPC\101806 8 DATE OF MEETING: PREPARED BY: PROJECT DESCRIPTION: RECOMMENDATION: CEQA: STAFF REPORT - PLANNING CITY OF TEMECULA PLANNING COMMISSION October 18, 2006 Christine Damko TITLE: Associate Planner Planning Application No. PA06-0213, a Development Plan and Conditional Use Permit to construct a 13,000 square foot water park located on 15.4 acres at the northwest corner of Ynez Road and County Center Drive consisting of pools, slides, and other types of water rides, concession stands, gift shop, party room, changing room with lockers, restrooms, picnic areas, service yard, and a 433 space parking lot. o Approve with Conditions o Deny o Continue for Redesign o Continue to: C8:I Recommend Approval with Conditions o Recommend Denial o Categorically Exempt (Section) (Class) o Notice of Determination (Section) o Negative Declaration C8:I Mitigated Negative Declaration with Monitoring Plan OEIR 13:IPlanning\2006IPA06-0213 Temecula Water Park CUPIPlanninglPC Staff Report.doc 1 PROJECT DATA SUMMARY Name of Applicant: Joshua Hunter, Clearwater Waterpark Development Date of Completion: July 21, 2006 Mandatory Action Deadline Date: October 18, 2006 General Plan Designation: Service Commercial Zoning Designation: Service Commercial Site/Surrounding Land Use: Service Commercial: Existing industrial and office buildings Site: Vacant North: South: East: West: Existing industrial and office buildings EXisting industrial and office buildings Existing industrial and office buildings Interstate 15 freeway Lot Area: 15.4 acres (670,824 square feet) Total Floor Area/Ratio: 4.6% proposed/20% allowed Landscape Area/Coverage: 30% proposed/20% required Parking Required/Provided: 433 spaces proposed/393 spaces required BACKGROUND SUMMARY Staff has worked with the applicant to ensure that all concerns have been addressed, and the <lpplicant concurs with the recommended Conditions of Approval. DESCRIPTION The water park will operate approximately four months of the calendar year, seven days a week, from Memorial Day to Labor Day, 10:00 a.m. to 8:00 p.m. The park will also be open a couple of weekends before Memorial Day and after Labor Day, depending on the weather. The water park will retain a full time staff of 15 employees and 300 seasonal employees, and will concentrate on recruiting mainly younger employees that live in the area. Access to the site will be from Ynez Road, towards the eastern property line. The park will propose three lanes on site accessing to the park including a bus lane. The park will accommodate 433 vehicles with an additional nine handicapped parking spaces, which is in compliance with the City's parking standards. The water park will charge a nominal parking fee upon entering the site. Parking attendants will be located onsite to accept payment and direct park attendees entering and leaving the site at all times. It is anticipated that that average daily attendance will be 2,000 people. Based on previous water park experience, the applicant estimates that 50% of the attendance (approximately 185 vehicles) will arrive at the park between the hours G:IPlanning\2006IPA06-0213 Temecula Water Park CUPIPlanninglPC Staff Report.doc 2 of 9:30 a.m. and 12:00 p.m. Eighty-five percent of the daily attendance (approximately 130 cars) will arrive before 3:30 p.m. The remaining 15% (approximately 55 vehicles) will arrive between 3:30 p.m. and 8:00 p.m. According to the Traffic Analysis, mostly all trips generated by the operation of the water park will not be during peak hours, which are between 11 :30 a.m. and 1 :30 p.m. and 4:00 p.m. and 6:00 p.m. ANALYSIS . Development Plan Site Desiqn The site is zoned Service Commercial and "Sports and Recreational Facilities" are permitted with a Conditional Use Permit. The development of the proposed water park is consistent with the City's General Plan, Development Code, and Design Guidelines. All buildings, mechanical enclosures, and rides meet the 50 foot maximum height requirement and main building setbacks. The front yard building setback (facing Ynez Road) will vary from 27 feet to more than 80 feet. The water park ride portion of the site will be enclosed by a seven foot tall perimeter wall with portions being tubular steel. The wall will include setback variations in addition to variation in materials. The north and east sides (facing Ynez Road) will include black tubular steel material and a slump block wall with river rock veneer pilasters. The south side of the property (facing Gold's Gym) will be enclosed strictly by a slump block wall, while the west side of the property (facing 1-15) will be enclosed by a tubular steel fence. In addition to the tubular steel fence, the project will propose a 15-foot high keystone retaining wall with plantable cells along the 1-15 freeway. Plantings will also be planted at the base of the retaining wall to further soften the wall elevation. The project proposes two slide rides (Drop Slides and Boomerango/Superbowl), Matt Racer, Wave Pool, Lazy River, Water Spray Park, Tots Play Area, and a smaller slide ride (Rainfortress). There are two areas (one towards the east side and the other towards the west) designated as future ride attractions that will be developed at a later date. All rides will be conditioned to not exceed the maximum building height of 50 feet. In association to the water and rides, the site will provide food service buildings and vending carts along with shade structures, picnic areas, lockers, changing rooms, and two separate areas for restrooms. Access/Parkinq Ingress/egress to the site will be from Ynez Road. Ingress will consist of three separate onsite lanes, in addition to a bus lane. Egress will be provided by a separate driveway location to the north of the entry point, and consist of a right turn lane onto Ynez Road. The Department of Public Works and Fire Department have reviewed the project and have determined that there is adequate onsite circulation for vehicles and emergency access. Parking attendants will greet the vehicles entering the site, accept the parking fee, and direct the vehicles to the appropriate parking locations. G:IPlanning\2006IPA06-0213 Temecula Water Park CUPIPlanninglPC Staff Report.doc 3 Parking is based on the City's Development Code requirements for a commercial recreation pool of one space per 1,000 square feet of park area plus one space per 300 square feet of related administration building area. This would equate to 393 required parking spaces. The project proposes 433 parking spaces. Parking is located towards the north property line, adjacent to the neighboring parking lot. Landscapina The project meets the 20% minimum landscape requirement for proposed development in the Service Commercial Zone. Landscaping is used for aesthetic purposes by providing specimen trees at the main entries such as Crape Myrtles, Purple-leaf Plums, and Southern Live Oaks. Pedestrian crossings are enhanced by using raised planters, specimen trees, and enhanced interlocking pavers. Landscaping is also used to help screen the project. Berming is used at a minimum of three feet along Ynez Road to screen the entry drive to the park, in addition to the 20 foot wide landscape setback that is also proposed along Ynez Road. Trees such as California Sycamore, Lemon Bottlebrush, Afghan Pine, Yew Pine, and Silver Dollar Gum are planted along the perimeter of the project in addition to shrubs and vines that are proposed to be planted adjacent to and on all wall/fences. Architecture The water park is a unique facility targeted for amusement and entertainment. The project proposes a light hearted "Ranch/Western" architectural theme and is consistent with City-Wide Design Guidelines. The Design Guidelines state that "main entries accessible to the public should be pronounced and easily recognizable." The water park proposes a 43 foot tall steel frame shade structure with open web steel trusses to enhance the main entry to the park. Associated buildings (such as the administrative offices, party barn, etc.) consist of vertical wood and "hardie-plank" siding. Details such as a clock element, porch overhangs, decorative vents, and variation of window placement and size create architectural interest. The Design Guidelines state "variation in roof form is encouraged to create interest, and lessen the mass of the building." The water park achieves this goal by creating various roof heights and pitches. Dormers are also added to create additional interest. The various roofs are constructed of standing seam metal, corrugated galvanized sheet metal, and asphalt shingle roofing. Some portions of the buildings (including roofs) and the slides will be painted in colors of red, yellow, blue, and green to generate excitement and energy. Conditional Use Permit According to Section 17.10.020 of the Development Code, Commercial Recreational Uses are permitted in the Service Commercial Zone with an approved Conditional Use Permit (CUP). Staff has reviewed the application and determined that the findings for approval can be made. The proposed water park is consistent with the surrounding uses and structures and will not adversely impact the existing buildings and uses because recreational uses already exist in the area. Immediately adjacent to the southern property line is Gold's Gym, a recreational workout facility open to the public. Less than one mile north of the project site is the Harveston Sports park, a public recreational facility which includes soccer fields and baseball fields. Approximately four miles east of the project site is the Harveston Community Park, a recreational lake with associated trails for City residents. In addition, the water park will only G:IPlanning\2006IPA06-0213 Temeoula Water Park CUPIPlannlnglPC Staff Report.doc 4 be open approximately four months of the calendar year, which will greatly reduce the impact to businesses immediately adjacent to the project. The use is also adequate in size and shape to accommodate the facility. The project proposes a 13,000 square foot water park on 15 acres and is considered a relatively small project compared to existing water parks in California. The water park will meet all Development Code regulations in regards to floor area ratio, lot coverage, setbacks, height regulations, and parking regulations. Over 30% of the site will be landscaped, which exceeds the required 20%. ENVIRONMENTAL DETERMINATION Staff has reviewed the project in accordance with the California Environmental Quality Act (CEQA) and based on an Initial Study, determined the project will not have a significant impact on the environment if mitigation measures are incorporated into the project. Traffic A Traffic Study was conducted by Kimley-Horn and Associates, Inc., dated September 2006. Under existing conditions, all intersections evaluated in the Traffic Study are functioning at LOS D or better during existing peak hour conditions except for the following intersections: Winchester Road at 1-15 NB Ramp (weekday evening peak hour), Winchester Road at Ynez Road (weekday evening at peak hour), Winchester Road at Promenade Mall East (weekday evening peak hour), Winchester Road at Margarita Road (weekday evening peak hour). With the addition of the project to the existing conditions, all intersections would continue to operate at LOS D or better except for those listed above that were already operating below acceptable levels per the City standards. The intersection of Ynez Road and County Center Drive warrants signalization under current conditions and is scheduled for signalization in the near future. City staff has directed that an annual ambient growth rate of 2% per year be applied to existing (2006) peak hour traffic volumes. Assuming the project is constructed and operational in 2007, all intersections would function at LOS D or better during peak hours with the exception of the intersections forecasted to operate at an unacceptable LOS without the project, and will continue to do so with the addition of project traffic. The project will contribute to intersections already operating at a deficient LOS, but will not cause any intersection to worsen to an unacceptable LOS, or to fall to a lower LOS. The over-capacity conditions along Winchester Road will be improved with the completion of the French Valley Parkway Interchange, which will result in a new interchange with the 1-15 Freeway one mile to the north. The construction of the French Valley Parkway Interchange project will result in substantial improvement of peak hour intersection traffic along Winchester to an acceptable LOS. The Winchester northbound ramp intersection and the Winchester/Ynez intersection will continue to operate at a LOS "F" during the evening peak hour; the total average daily vehicle delay will be reduced by as much as 30-90 seconds per vehicle. With the French Valley Parkway Interchange in place, some traffic that currently uses the Winchester Road interchange will shift to the north, providing some relief. Likewise, it is expected that the portion of the Temecula Water Park traffic that was forecasted to approach the site from the north will also shift from the Winchester Interchange to the French Valley Parkway Interchange, which would further reduce any project contribution to congestion on Winchester Road. G:IPlanning\2006IPA06-0213 Temecula Waler Park CUPIPlanninglPC Staff Report.doc 5 The proposed project developed as a water park generates average weekday entering vehicles of 630 over the course of the day, for a total of 1,260 trips. Average Saturday entering vehicles is 802 vehicles, for a total daily trip generation of 1,604 trips. The project site is currently zoned Service Commercial. The Service Commercial designation would allow many different types of development, including office and retail uses. Assuming the Target Floor Area Ration of .30, the 15.4 acre site could be developed with up to 201,247 square feet of commercial or office uses. An office use would bring 2,216 daily weekday trips/83 weekend trips and a department store could bring in 11,274 daily weekday trips/1 ,008 weekend trips per day. The proposed water park use would generate less traffic each day during the peak hours (additionally, the water park does not open until 10:00 a.m.) than most other uses, since any other type of development would typically be open 5 to 7 days a week, 52 weeks a year. The proposed water park is anticipated to generate significantly less traffic on an annual basis than any other allowed use. Over the long-term, the proposed project will contribute to LOS F traffic flows at the locations identified above, even after above mentioned improvements are implemented. However, this project will not significantly worsen the traffic flow after implementation of mitigation. In addition, the project is required to pay a fair share contribution to circulation system components that are impacted by cumulative traffic growth in the Temecula region through the payment of mitigation fees. Based on the identified project specific and cumulative impacts of the proposed project, staff concludes that potential project specific and cumulative effects of the project are effectively mitigated to a less than significant impact level based on the mitigation measures identified below, including payment of fair share fees for circulation system impacts that result from cumulative traffic growth. With implementation of the above condition of approval, the project's specific and cumulative circulation system impacts will be offset or mitigated to a less than significant level of impact. Recommended Mitigation Measures: 1. An Irrevocable Offer of Dedication shall be approved and recorded for the future French Valley Interchange right-of-way along the westerly property boundary. 2. Improve Ynez Road along property frontage to include installation of sidewalk, signing and striping, utilities (including but not limited to water and sewer), and a 14-foot wide raised landscaped median. 3. The signal at the intersection of Ynez Road and County Center Drive shall be modified to accommodate full movement. 4. Provide dedicated right turn lane on Ynez Road onto the project's main entry 10-feet wide by 150 feet long with a 120 feet transition. 5. A construction area Traffic Control Plan shall be designed by a registered Civil or Traffic Engineer and reviewed by the Director of the Department of Public Works for any street closure and detour or other disruption to traffic circulation as required by the Department of Public Works. 6. The Developer shall pay to the City the Public Facilities Development Impact Fee as required by, and in accordance with, Chapter 15.06 of the Temecula Municipal Code and all Resolutions implementing Chapter 15.06. G:IPlanning\2006IPA06-0213 Temecula Waler Park CUPIPlanninglPC Staff Report.doc 6 7. The Developer shall pay to the City the Western Riverside County Transportation Uniform Mitigation Fee (TUMF) Program as required by, and in accordance with, Chapter 15.08 of the Temecula Municipal Code and all Resolutions implementing Chapter 15.08. Noise Based on a Noise Study that was prepared, the project will generate a maximum noise level of 65.8 dBA at the property lines with mitigation measures, which is less than the maximum threshold limit of 70 dBA specified in the General Plan Noise Element. Recommended Mitigation Measures: 1. Applicant shall establish a noise complaint response program and shall respond to any noise complaints received for this project by measuring the noise levels at the affected receptor site. 2. Applicant will require that all construction equipment be operated with mandated noise control equipment (mufflers or silencers). Air Qualitv Based in the Air Quality report prepared for the project, the project will not exceed the thresholds of the South Coast Air Basin with the following mitigations: Recommended Mitigation Measures: 1. During construction of the proposed improvements, construction equipment will be properly maintained at an offsite location and includes proper tuning and timing of engines. Equipment maintenance records and equipment design specification data sheets shall be kept onsite during construction. 2. During construction of the proposed improvements, all contractors will be advised not to idle construction equipment on site for more than ten minutes. 3. Prior to construction of the proposed improvements, the project proponent will provide a Dust Control Plan that will describe the application of standard best management practices to control dust during construction. Based on the above mitigation measures, staff recommends the adoption of a Mitigated Negative Declaration and attached Mitigation Monitoring Program. CONCLUSION/RECOMMENDATION Staff has determined that this project is consistent with the General Plan, Development Code, and Design guidelines and recommends approval based on the following findings and subject to the attached Conditions of Approval. G:IPlanning\2006IPA06-0213 Temecula Water Park CUPIPlanninglPC Staff Report.doc 7 FINDINGS Development Plan (Code Section 17.05.010.F) 1. The proposed use is in conformance with the General Plan for Temecula and with all applicable requirements of state law and other ordinances of the City. The proposed water park is permitted in the Service Commercial Zone based on the standards contained in the City's Development Code, which includes approval of a Conditional Use Permit. The site is properly planned and zoned, and as conditioned, is physically suitable for the proposed water park. The project, as conditioned, is also consistent with other applicable requirements of state law and local ordinances, including the California Environmental Quality Act (CEQA), and all applicable fire and building codes. 2. The overall development of the land is designed for the protection of the public health, safety, and general welfare. The overall design of the water park, including the site, buildings, parking, circulation, and other associated site improvements, is consistent with, and intended to protect the health and safety of those living and working in and around the site. The project has been reviewed for, and as conditioned, has been found to be consistent with the City's General Plan, Development Code, Building Code, and Fire Prevention Codes to ensure that the development will be constructed and function in a manner consistent with the public health, safety, and welfare. Conditional Use Permit (Code Section 17.04.010.E) 1 . The proposed conditional use is consistent with the General Plan and the Development Code. The proposed water park is permitted in the Service Commercial Zone based on the standards contained in the City's Development Code, which includes approval of a Conditional Use Permit. The site is properly planned and zoned, and as conditioned, is physically suitable for the proposed water park. The project, as conditioned, is also consistent with other applicable requirements of state law and local ordinances, including the California Environmental Quality Act (CEQA), and all applicable fire and building codes. 2. The proposed conditional use is compatible with the nature, condition and development of adjacent uses, buildings and structures and the proposed conditional use will not adversely affect the adjacent uses, or structures. The proposed water park is consistent with the surrounding uses and structures and will not adversely impact the existing buildings and uses because recreational uses already exist in the area. Immediately adjacent to the southern property line is Gold's Gym, a recreational workout facility open to the public. Less than one mile north of the project site is the Harveston Sports Park, a public recreational facility which includes soccer fields and baseball fields. Approximately four miles east of the project site is the G:IPlanning\2006IPA06-0213 Temecula Water Park CUPIPlanninglPC Staff Report.doc 8 Harveston Community Park, a recreational lake with associated trails for City residents. In addition, the water park will only be open approximately four months of the calendar year, which will greatly reduce the impact to businesses immediately adjacent to the project. With existing recreational uses already existing in the area and the short term operation season, the water park will not adversely affect adjacent uses or structures. 3. The site for a proposed conditional use is adequate in size and shape to accommodate the yards, walls, fences, parking and loading facilities, buffer areas, landscaping, and other development features prescribed in this Development Code and required by Planning Commission or Council in order to integrate the use with other uses in the neighborhood. The project proposes a 13,000 square foot water park on 15 acres and is considered a relatively smaller project compared to existing water parks in California. The water park will meet all Development Code regulations in regards to floor area ratio, lot coverage, setbacks, height regulations, and parking regulations. Over 30% of the site will be landscaped, which exceeds the required 20%. 4. The nature of the proposed conditional use is not detrimental to the health, safety and general welfare of the community. The project has been reviewed for compliance with the Development Code, Universal Building Code (UBC), and Fire Prevention Code for compliance with all applicable requirements. Staff has found the proposed water park is not detrimental to the heath, safety, or general welfare of the community. In addition, Fire Prevention has reviewed the circulation and drive aisle widths and has determined that the site will be able to be adequately served by the Fire Department in an emergency situation. ATTACHMENTS 1. Vicinity Map - Blue Page 10 2. Plan Reductions - Blue Page 11 3. PC Resolution 06-_ - Blue Page 12 Exhibit A - Draft Conditions of Approval 4. Initial Study - Blue Page 13 6. Statement of Operations - Blue Page 14 G:IPlanning\2006IPA06-0213 Temecula Water Park CUPIPlanninglPC Staff Report.doc 9 ATTACHMENT NO.1 VICINITY MAP G:IPlanning\2006IPA06-0213 Temecula Water Park CUPIPlanninglPC Staff Report.doc 10 CIty of Temecura I P A06-0213I o , 245 490 980 1,470 'Feet ,... This map was made by tho <City ofTemecula Geographic Infannatlon System. The map Is derived from base data produced by the Riverside County Assessor's Department and the Transportation and land Management Agency af Riverside County. The City ofTemecula assumes no warranty or legal responsibility for the Information contained on this map. Data and information represented on this map are subject to update and modification. The Geographic Infannelion System and other sources should be queried for the most current informallon. This map is nottar reprint or resale. 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M ~ "' z o ~ ~ w o z "" z :'i "- w 0: => l:i => go "' w " "" J: "' . , N . r---------- I , , , , , , , , , : , , , , , , , t------ .li'.... ----------, , , , , , , , , , , , i , : , , , , , ----------1 , , i ~ ~ ~ ~ ~ ~ ~ ~~ il~ ~ ~ ~ ~. ~ i~'~ ~~~ .' 0""1' ;a~;~: !h~ dl dii ~.~ ~ - ~ ,:::;:' , ~ ~ i I "' z o ~ w ui o z "" z :'i "- W 0: => l:i => 0: in " z ~ " ::! w > o u II'." ~ ~ : f I" ~ o > u , > :;0 ~"' ~.... ........ ...: ".." "0 :.0;1"" ~; :: ::;.. ...... ~~ 0:: N"'O..... rnrn Clw ~o:: c;:) ...II- -0 ;:);:) llIo:: WI- crn iiiw ;:::c o::~ :'rn ATTACHMENT NO.3 PC RESOLUTION 06-_ G:IPlanning\2006IPA06-0213 Temecula Water Park CUPIPlanninglPC Staff Report.doc 12 PC RESOLUTION NO. 06- A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF TEMECULA APPROVING PLANNING APPLICATION NO. PA 06-0213, A DEVELOPMENT PLAN AND CONDITIONAL USE PERMIT FOR THE SITE DEVELOPMENT AND CONSTRUCTION OF A 13,000 SQUARE FOOT WATER PARK ON 15.4 ACRES LOCATED AT THE NORTHWEST INTERSECTION OF YNEZ ROAD AND COUNTY CENTER DRIVE CONSISTING OF POOLS, SLIDES, AND OTHER TYPES OF WATER RIDES, CONCESSION STANDS, GIFT SHOP, PARTY ROOM, CHANGING ROOM WITH LOCKERS, RESTROOMS, PICNIC AREAS, SERVICE YARD, AND PARKING LOT. THE WATER PARK WILL BE OPERATING APPROXIMATELY FOUR MONTHS OF THE CALENDAR YEAR. THE PARK WILL BE OPEN FROM MEMORIAL DAY TO LABOR DAY FORM 10:00 A.M. TO 8:00 P.M. IT IS ANTICIPATED THAT THE PARK WILL RETAIN 15 FULL TIME STAFF AND 300 SEASONAL EMPLOYEES Section 1. On July 21, 2006, Joshua Hunter with Clearwater Waterpark Development filed Planning Application No. PA06-0213, in a manner in accord with the City of Temecula General Plan and Development Code. Section 2. The Application 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 the Application, Initial Study, and Mitigation Monitoring Program on October 18, 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 Commission hearing and after due consideration of the testimony, the Commission recommended approval of the Application subject to and based upon the findings set forth hereunder. Section 5. All legal preconditions to the adoption of this Resolution have occurred. Section 6. That the above recitations are true and correct and are hereby incorporated by reference. Section 7. Findinqs. The Planning Commission, in approving the Application hereby makes the following findings as required by Sections 17.05.010.F and 17.04.010.E of the Development Code. Development Plan (Code Section 17.05.010.F) A. The proposed use is in conformance with the General Plan for Temecula and with all applicable requirements of state law and other ordinances of the City; G:\Planning\2006\PA06-0213 Temecula Water Park CUP\Planning\PC RESOLUTION #1.doc 1 The proposed Water Park is permitted in the Service Commercial zone based on the standards contained in the City's Development Code, which includes approval of a Conditional Use Permit. The site is properly planned and zoned, and as conditioned, is physically suitable for the proposed Water Park. The project, as conditioned, is also consistent with other applicable requirements of state law and local ordinances, including the California Environmental Quality Act (CEQA), and all applicable fire and building codes. B. The overall development of the land is designed for the protection of the public health, safety, and general welfare; The overall design of the Water Park, including the site, buildings, parking, circulation, and other associated site improvements, is consistent with, and intended to protect the health and safety of those living and working in and around the site. The project has been reviewed for, and as conditioned, ahs been found to be consistent with the City's general Plan, Development Code, Building Code, and Fire Prevention Codes to ensure that the development will be constructed and function in a manner consistent with the public health, safety, and welfare. Conditional Use Permit (Code Section 17.04.010.E) A. The proposed conditional use is consistent with the General Plan and the Development Code; The proposed Water Park is permitted in the Service Commercial zone based on the standards contained in the City's Development Code, which includes approval of a Conditional Use Permit. The site is properly planned and zoned, and as conditioned, is physically suitable for the proposed Water Park. The project, as conditioned, is also consistent with other applicable requirements of state law and local ordinances, including the California Environmental Quality Act (CEQA), and all applicable fire and building codes. B. The proposed conditional use is compatible with the nature, condition and development of adjacent uses, buildings and structures and the proposed conditional use will not adversely affect the adjacent uses, or structures; The proposed 'Water Park is consistent with the surrounding uses and structures and will not adversely impact the existing buildings and uses because recreational uses already exist in the area. Immediately adjacent to the southern property line is Gold's Gym, a recreational workout facility open to the public. Less than one mile north of the project site is the Harveston Sports park, a public recreational facility which includes soccer fields and baseball fields. Approximately four miles east of the project site is the Harveston Community Park, a recreational lake with associated trails for City residents. In addition, the Water Park will only be open approximately four months of the calendar year, which will greatly reduce the impact to businesses immediately adjacent to the project. With existing recreational uses already existing in the area and the short term operation season, the Water Park will not adversely affect adjacent uses or structures. C. The site for a proposed conditional use is adequate in size and shape to accommodate the yards, walls, fences, parking and loading facilities, buffer areas, G:IPlanning\2006IPA06-0213 Temecula Water Park CUPIPlanninglPC RESOLUTION #1.doc 2 landscaping, and other development features prescribed in this Development Code and ,required by Planning Commission or Council in order to integrate the use with other uses in the neighborhood; The project proposes a 13,000 square foot Water Park on 15 acres and is considered a relatively smaller project compared to existing Water Parks in California. The Water park will meet all Development Code regulations in regards to floor area ratio, lot coverage, setbacks, height regulations, and parking regulations. Over 30% of the site will be landscaped, which exceeds the required 20%. D. The nature of the proposed conditional use is not detrimental to the health, safety and general welfare of the community; The project has been reviewed for compliance with the Development Code, Universal Building Code (UBC), and Fire Prevention Code for compliance with all applicable requirements. Staff has found the proposed Water Park is not detrimental to the heath, safety, or general welfare of the community. In addition, Fire Prevention has reviewed the circulation and drive aisle widths and has determined that the site will be able to be adequately seNed by the Fire Department in an emergency situation. Section 8. Environmental Compliance. In accordance with the California Environmental Quality Act, it has been determined that, with this mitigation, this project as proposed will not have a significant impact upon the environment. As a result, a Negative Declaration with a Mitigation Monitoring Program has been prepared. Section 9. Conditions. The Planning Commission of the City of Temecula approves Planning Application No. PA06-0213, including the Initial Study with a Mitigation Monitoring Program, subject to the Conditions of Approval set forth on Exhibit A, attached hereto, and incorporated herein by this reference. G1:IPlanning\2006\PA06-0213 Temecula Waler Park CUPIPlanninglPC RESOLUTION #1.doc 3 Section 10. PASSED, APPROVED AND ADOPTED by the City of Temecula Planning Commission this 18th day of October 2006. Ron Guerriero, Chairman ATTEST: Debbie Ubnoske, Secretary [SEAL] STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss CITY OF TEMECULA ) I, Debbie Ubnoske, Secretary of Ihe Temecula Planning Commission, do hereby certify that the forgoing 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 18th day of October 2006, by the following vote: AYES: PLANNING COMMISSIONERS: NOES: PLANNING COMMISSIONERS: ABSENT: PLANNING COMMISSIONERS: ABSTAIN: PLANNING COMMISSIONERS: Debbie Ubnoske, Secretary G:\Planning\2006\PA06-0213 Temecula Water Park CUP\Planning\PC RESOLUTION #1.doc 4 EXHIBIT A DRAFT CONDITIONS OF APPROVAL G:IPlanning\2006IPA06-0213 Temecula Water Park CUPIPlanninglPC RESOLUTION #1.doc 5 EXHIBIT A CITY OF TEMECULA DRAFT CONDITIONS OF APPROVAL Planning Application No.: PA06-0213 Project Description A Development with a Conditional Use Permit for the construction of a 13,000 square foot water park on 15.4 acres at the northwest intersection of Ynez Road and County Center Drive consisting of pools, slides, and other types of water rides, concession stands, gift shop, party room, changing room with lockers, restrooms, picnic areas, service yard, and parking lot Assessor's Parcel No. 910-271-002 and 910-271-005 thru 910-271-008 MSHCP Category: Commercial DIF Category: TUMF Category: Service Commercial Service Commercial Approval Date: October 18, 2006 Expiration Date: October 18, 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 Determination with a DeMinimus Finding for the Mitigated or Negative Declaration required under Public Resources Code Section 21152 and California Code of Regulations Section 15075. 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)). G:\Planning\2006\PA06-0213 Temecula Water Park CUP\Planning\Draft.COAs.doc 1 GENERAL REQUIREMENTS (Conditional Use Permit) G:IPlanning\2006IPA06-0213 Temecula Water Park CUPIPlanninglDraft COAs.doc 2 Planning Department 2. 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, conceming 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. 3. The hours of operation forthe water park shall be 10:00 a.m. to 8:00 p.m., Monday through Sunday, unless a modification of this Conditional Use Permit is approved. 4. The water park operating season shall be limited to Memorial Day to Labor Day. The park may open before and after Memorial/Labor Day up to a maximum of 60 days per calendar year, unless a modification of this Conditional Use Permit is approved. 5. The water park shall be in compliance with the attached Mitigation Monitoring Program at all times. 6. Parking attendants shall assist in the directing of ingress/egress traffic flow at all times. 7. The water park shall comply with the attached Statement of Operations at all times. 8. This Conditional Use Permit may be revoked pursuant to Section 17.03.080 of the City's Development Code. 9. The permittee shall obtain City approval for any modifications or revisions to the approval of this Conditional Use Permit. G:\Planning\2006\PA06-0213 Temecula Water Park CUP\Planning\Draft COAs.doc 3 GENERAL REQUIREMENTS (Development Plan) G:\Planning\2006\PA06w0213 Temecula Water Park CUP\Planning\Draft COAs.doc 4 Planning Department 1 . 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. 2. 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. 3. The permittee shall obtain City approval for any modifications or revisions to the approval of this development plan. 4. The applicant shall comply with the Mitigation Monitoring Program for Planning Application No. PA06-0213. 5. This approval shall be used within two years of the approval date; otherwise, it shall become null and void. By use is l11eant the beginning of substantial construction contemplated by this approval within the two-year period, which is thereafter diligently pursued to completion, or the beginning of substantial utilization contemplated by this approval. 6. The Director of Planning may, upon an application being filed within 30 days prior to expiration, and for good cause, grant a time extension of up to three 1-year extensions of time, one year at a time. 7. A separate building permit shall be required for all signage. (Sign program may be required) 8. The development of the premises shall substantially conform to the approved site plan and elevations contained on file with the Planning Department. 9. Landscaping installed for the project shall be continuously maintained to the reasonable satisfaction of the Planning Director. If it is determined that the landscaping is not being maintained, the Planning Director shall have the authority to require the property owner to bring the landscaping into conformance with the approved landscape plan. The continued maintenance of all landscaped areas shall be the responsibility of the developer or any successors in interest. 10. The applicant shall submit to the Planning Department for permanent filing two 8" X 10" glossy photographic color prints of the approved Color and Materials Board and the colored architectural elevations. All labels on the Color and Materials Board and Elevations shall be readable on the photographic prints. G:\Planning\2006\PA06-0213 Temecula Water Park CUP\Planning\Draft COAs.doc 5 11. Trash enclosures shall be provided to house all trash receptacles utilized on the site. These shall be clearly labeled on site plan. 12. Parking for the project shall be shared across the site, including parking spaces in all lots that are a part of the project. If the project involves multiple lots, the applicant shall submit to the Planning Department a copy of a recorded Reciprocal Use Agreement, which provides for cross-lot access and parking across all lots. 13. All buildings, mechanical structures, slides, and attractions must meet the 50 foot height requirement (including all future development). Public Works Department 14. A Grading Permit for either rough and/or precise grading, including all on-site flat work and improvements, shall be obtained from the Department of Public Works prior to commencement of any construction outside of the City-maintained street right-of-way. 15. An Encroachment Permit shall be obtained from the Department of Public Works priqr to pommencement of any construction within an existing or proposed City right-of-way. 16. An Encroachment Permit shall be obtained from the California Department of Transportation prior to commencement of any construction within an existing or proposed State right-of- way. 17. All improvement plans, grading plans, and raised landscaped median plans shall be coordinated for consistency with adjacent projects and existing improvements contiguous to the site and shall be submitted on standard 24" x 36" City of Temecula mylars. 18. The project shall include construction-phase pollution prevention controls and permanent post-construction water quality protection measures into the design of the projectto prevent non-permitted runoff from discharging offsite or entering any storm drain system or receiving water. 19. A Water Quality Management Plan (WQMP) must be accepted by the City prior to the initial grading plan check. The WQMP will be prepared by a registered Civil Engineer and include site design BMPs (Best Management Practices), source controls, and treatment mechanisms. 20. The proposed access on Ynez Road shall be restricted to a right in/right out movement. Building and Safety Department 21. All design components shall comply with applicable provisions of the 2001 Edition of the California Building, Plumbing and Mechanical Codes; 2004 California Electrical Code; California Administrative Code, Title 24 Energy Code, California Title 24 Disabled Access Regulations, and the Temecula Municipal Code. 22. The City of Temeculll has adopted an ordinance to collectfees for a Riverside County area wide Transportation Uniform Mitigation Fee (TUMF). Upon the adoption of this ordinance on March 31 , 2003, this project will be subject to payment of these fees at the time of building permit issuance. The fees, if applicable to the project, shall be subject to the provisions of Ordinance No. 03-01 and the fee schedule in effect at the time of building permit issuance. G:\Planning\2006\PA06-0213 Temecula Water Park CUP\Planning\Draft COAs.doc 6 23. Submit at time of plan review, a complete exterior site lighting plans showing compliance with Ordinance No. 655 for the regulation of light pollution. All street-lights and other outdoor lighting shall be shown on electrical plans submitted to the Department of Building and Safety. Any outside lighting shall be hooded and directed so as not to shine directly upon adjoining property or public rights-of-way. 24. A receipt or clearance letter from the Temecula Valley School District shall be submitted to the Building and Safety Department to ensure the payment or exemption from School Mitigation Fees. 25. Obtain all building plans and permit approvals prior to commencement of any construction work. 26. Show all building setbacks. 27. Developments with Multi-tenant Buildings or Shell Buildings shall provide a house electrical meter to provide power for the operation of exterior lighting, irrigation pedestals and fire alarm systems for each building on the site. Developments with Single User Buildings shall clearly show on the plans the location of a dedicated panel in place for the purpose of the operation of exterior lighting and fire alarm systems when a house meter is not specifically proposed. 28. Provide an approved automatic fire sprinkler system. 29. All building and facilities must comply with applicable disabled access regulations. Provide all details on plans. (California Disabled Access Regulations effective April 1, 1998) 30. Provide disabled access from the public way to the main entrance of the building. 31. Provide van accessible parking located as close as possible to the main entry. 32. Show path of accessibility from parking to furthest point of improvement. 33. Trash enclosures, patio covers, light standards, and any block walls if not on the approved building plans, will require separate approvals and permits. 34. Signage shall be posted conspicuously at the entrance to the project that indicates the hours of construction, shown below, as allowed by the City of Temecula Ordinance No. 94-21, specifically Section G (1) of Riverside County Ordinance No. 457.73, for any site within one- quarter mile of an occupied residence. Monday-Friday 6:30 a.m. - 6:30 p.m. Saturday 7:00 a.m. - 6:30 p.m. No work is permitted on Sundays or Government Holidays 35. Please be advised of the following shell building/complete building policy in the City of Temecula when preparing plans for submittals. It is our recommendation that buildings with a known tenant or occupant be submitted as a complete building. Please consider the attached Building and Safety Department policy in determining the course of your design work and subsequent submittal. G:\Planning\2006\PA06-0213 Temecula Water Park CUP\Planning\Draft COAs.doc 7 36. Obtain street addressing for all proposed buildings prior to submittal for plan review. 37. Restroom fixtures, number and type, to be in accordance with the provisions of the 2001 Edition of the California Building Code Appendix 29. 38. Provide electrical plan including load calculations and panel schedule, plumbing schematic and mechanical plan applicable to scope of work for plan review. 39. Truss calculations that are stamped by the engineer of record and the truss manufacturer engineer are required for plan review submittal. 40. Provide precise grading plan at plan check submittal to check accessibility for persons with disabilities. 41. A pre-construction meeting is required with the building inspector prior to the start of the building construction. Fire Prevention 42. Final fire and life safety conditions will be addressed when building plans are reviewed by the Fire Prevention Bureau. These conditions will be based on occupancy, use, the California Building Code (CBC), California Fire Code (CFC), and related codes which are in force at the time of building plan sUQmittal. 43. The Fire Prevention Bureau is required to set a minimum fire flow for the remodel or construction of all commercial buildings per CFC Appendix III.A, Table A-III-A-1. The developer shall provide for this project, a water system capable of delivering 2000 GPM at 20 PSI residual operating pressure, plus an assumed sprinkler demand of 400 GPM for a total fire flow of 2400 GPM with 2 hour duration. The required fire flow may be adjusted during the approval process to reflect changes in design, construction type, or automatic. fire protection measures as approved by the Fire Prevention Bureau. The Fire Flow as given above has taken into account all information as provided (CFC 903.2, Appendix III-A). 44. The Fire Prevention Bureau is required to set minimum fire hydrant distances per CFC Appendix III-B, Table A-III-B-1. A combination of on-site and oft-site super fire hydrants (6" x 4" x 2-21/2" outlets) shall be located on Fire Department access roads and adjacent public streets. Hydrants shall be spaced at 400 feet apart, at each intersection and shall be located no more than 225 feet from any point on the street or Fire Department access road(s) frontage to a hydrant. The required fire flow shall be available from any adjacent hydrant(s) in the system. The upgrade of existing fire hydrants may be required (CFC 903.2, 903.4.2, and Appendix III-B). 45. As required by the California Fire Code, when any portion of the facility is in excess of 150 feet from a water supply on a public street, as measured by an approved route around the exterior of the facility, on-site fire hydrants and mains capable of supplying the requiredfire flow shall be provided. For this project on site fire hydrants are required (CFC 903.2). 46. If construction is phased, each phase shall provide approved access and fire protection prior to any building construction (CFC 8704.2 and 902.2.2). G:\Planning\2006\PA06-0213 Temecula Water Park CUP\PlanninglDraft COAs.doc 8 Community Services Department 47. The trash enclosures shall be large enough to accommodate a recycling bin, as well as, regular solid waste containers. 48. The developer shall contact the City's franchised solid waste hauler for disposal of construction debris. Only the City's franchisee may haul construction debris. 49. The developer shall contact the Maintenance Superintendent for a pre-design meeting to obtain TCSD design specifications for the landscaped median on Ynez Road. 50. The landscape construction drawings for the landscaped median on Ynez Road shall be reviewed and approved by the Director of Community Services. 51. Construction of the future TCSD maintained landscaped median on Ynez Road shall commence pursuant to a pre-construction meeting with the developer and TCSD Maintenance Superintendent. Failure to comply with the TCSD review and inspection process may preclude acceptance of these areas into the TCSD maintenance programs. 52. The developer, the developer's successor or assignee, shall be responsible for the maintenance of the landscaped median on Ynez Road until such time as those responsibilities are accepted by the TCSD or other responsible party. 53. Successful completion of a 90-day maintenance period will be required prior to the acceptance of the landscaped median on Ynez Road by TCSD. 54. The Applicant shall comply with the Public Art Ordinance. 55. All parkways, landscaping, fencing and on site lighting shall be maintained by the property owner. 56. A Class II bike lane shall be installed on Ynez Road. G:\Planning\2006\PA06-0213 Temecula Water Park CUP\Planning\Oraft COAs.doc 9 PRIOR TO ISSUANCE OF GRADING PERMITS G:\Planning\2006\PA06-0213 Temecula Water Park CUP\Planning\Draft CQAs.doc 10 Planning Department 57. Double detector check valves shall be either installed underground or internal to the project site at locations not visible from the public right-of-way, subject to review and approval by the Director of Planning. 58. The following shall be included in the Notes Section of the Grading Plan: "If at any time during excavation/construction of the site, archaeological/cultural resources, or any artifacts or other objects which reasonably appears to be evidence of cultural or archaeological resource are discovered, the property owner shall immediately advise the City of such and the City shall cause all further excavation or other disturbance of the affected area to immediately cease. The Director of Planning at his/her sole discretion may require the property to deposit a sum of money it deems reasonably necessary to allow the City to consult and/or authorize an independent, fully qualified specialist to inspect the site at no cost to the City, in order to assess the significance of the find. Upon determining that the discovery is not an archaeological/cultural resource, the Director of Planning shall notify the property owner of such determination and shall authorize the resumption of work. Upon determining that the discovery is an archaeological/cultural resource, the Director of Planning shall notify the property owner that no further excavation or development may take place until a mitigation plan or other corrective measures have been approved by the Director of Planning." 59. If cultural resources are discovered during the project construction (inadvertent discoveries), all work in the area of the find shall cease, and a qualified archaeologist and representatives of the Pechanga Tribe shall be retained by the project sponsor to investigate the find, and make recommendations as to treatment and mitigation. 60. All sacred sites are to be avoided and preserved. Public Works Department 61. An Irrevocable Offer of Dedication shall be approved and recorded for the future French Valley Interchange right-of-way along the westerly property boundary. 62. A permit from Riverside County Flood Control and Water Conservation District is required for work within their right-of-way. 63. A permit from Caltrans is required for any work within their right-of-way. 64. A Grading Plan shall be prepared by a registered Civil Engineer and shall be reviewed and approved by the Department of Public Works. The grading plan shall include all necessary erosion control measures needed to adequately protect adjacent public and private property. 65. The Developer shall post security and enter into an agreement guaranteeing the grading and erosion control improvements in conformance with applicable City Standards and subjectto approval by the Department of Public Works. 66. A Soil Report shall be prepared by a registered Soil or Civil Engineer and submitted to the Director of the Department of Public Works with the initial grading plan check. The report shall address all soils conditions of the site, and provide recommendations for the construction of engineered structures and pavement sections. G:IPlanning\2006IPA06-0213 Temecula Water Park CUPIPlanninglDraft COA..doc 11 67. The Developer shall have a Drainage Study prepared by a registered Civil Engineer in accordance with City Standards identifying storm water runoff expected from this site and upstream of this site. The study shall identify all existing or proposed public or private drainage facilities intended to discharge this runoff. The study shall also analyze and identify impacts to downstream properties and provide specific recommendations to protect the properties and mitigate any impacts. Any upgrading or upsizing of downstream facilities, including acquisition of drainage or access easements necessary to make required improvements, shall be provided by the Developer. 68. Construction-phase pollution prevention controls shall be consistent with the City's Grading, Erosion & Sediment Control Ordinance and associated technical manual, and the City's standard notes for Erosion and Sediment Control. 69. The project shall demonstrate coverage under the State NPDES General Permit for Construction Activities by providing a copy of the Waste Discharge Identification number (WDID) issued by the State Water Resources Control Board (SWRCB). A Stormwater Pollution Prevention Plan (SWPPP) shall be available at the site throughout the duration of construction activities. 70. As deemed necessary by the Director of the Department of Public Works, the Developer shall receive written clearance from the following agencies: a. San Diego Regional Water Quality Control Board b. Riverside County Flood Control and Water Conservation District c. Planning Department d. Department of Public Works 71. The Developer shall comply with all constraints which may be shown upon an Environmental Constraint Sheet (ECS) recorded with any underlying maps related to the subject property. 72. The applicant shall comply with the provisions of Chapter 8.24 of the Temecula Municipal Code (Habitat Conservation) by paying the appropriate fee set forth in that Ordinance or by providing documented evidence that the fees have already been paid. 73. The Developer shall obtain any necessary letters of approval or slope easements for off-site work performed on adjacent properties as directed by the Department of Public Works. 74. A flood mitigation charge shall be paid. The Area Drainage Plan fee is payable to the Riverside County Flood Control and Water Conservation District by either cashier's check or money order, prior to issuance of permits, based on the prevailing area drainage plan fee. If the full Area Drainage Plan fee or mitigation charge has already been credited to this property, no new charge needs to be paid. G:\Planning\2006\PA06-0213 Temecula Water Park CUP\Planning\Drafl COAs.doc 12 PRIOR TO ISSUANCE OF BUILDING PERMIT G:IPlanning\2006IPA06-0213 Temecula Water Park CUPIPlanninglDraft COAs.doc 13 Planning Department 75. A lot line adjustment shall be submitted and approved and recorded by the Planning Department prior to the issuance of any building permit. 76. The applicant shall submit a photometric plan, including the parking lot to the Planning Department, which meets the requirements of the Development Code and the Palomar Lighting Ordinance. The parking lot light standards shall be placed in such a way as to not adversely impact the growth potential of the parking lot trees. 77. All downspouts shall be internalized. 78. Three copies of Construction Landscaping and Irrigation Plans shall be reviewed and approved by the Planning Department. These plans shall conform to the approved conceptual landscape plan, or as amended by these conditions. The location, number, genus, species, and container size of the plants shall be shown. The plans shall be consistent with the Water Efficient Ordinance. The plans shall be accompanied by the following items: a. Appropriate filing fee (per the City of Temecula Fee Schedule at time of submittal). b. Provide a minimum five-foot wide planter to be installed at the perimeter of all parking areas. Curbs, walkways, etc. are not to infringe on this area. c. Provide an agronomic soils report with the construction landscape plans. d. One copy of the approved grading plan. e. Water usage calculations per Chapter 17.32 of the Development Code (Water Efficient Ordinance). f. Total cost estimate of plantings and irrigation (in accordance with approved plan). g. A landscape maintenance program shall be submitted for approval, which details the proper maintenance of all proposed plant materials to assure proper growth and landscape development for the long-term esthetics of the property. The approved maintenance program shall be provided to the landscape maintenance contractor who shall be responsible to carry out the detailed program. h. Specifications shall indicate that a minimum of two landscape site inspections will be required. One inspection to verify that the irrigation mainline is capable of being pressurized to 150 psi for a minimum period of two hours without loss of pressure. The second inspection will verify that all irrigation systems have head-to-head coverage, and to verify that all plantings have been installed consistent with the approved construction landscape plans. The applicant/owner shall contact the Planning Department to schedule inspections. 79. All utilities shall be screened from public view. Landscape construction drawings shall show and label all utilities and provide appropriate screening. Provide a three foot clear zone around fire check detectors as required by the Fire Department before starting the screen. Group utilities together in order to reduce intrusion. Screening of utilities is not to look like an after-thought. Plan planting beds and design around utilities. Locate all light poles on plans and insure that there are no conflicts with trees. G:\Planning\2006\PA06-0213 Temecula Water Park CUP\Planning\Draft COAs.doc 14 80. Building Construction Plans shall include details of all outdoor areas (including but not limited to trellises, decorative furniture, fountains, and hardscape to match the style of the building subject to the approval of the Planning Director. 81. Building plans shall indicate that all roof hatches shall be painted "International Orange." The construction plans shall indicate the application of painted rooftop addressing plotted on a 9-inch grid pattern with 45-inch tall numerals spaced 9-inches apart. The numerals shall be painted with a standard 9-inch paint roller using fluorescent yellow paint applied over a contrasting background. The address shall be oriented to the street and placed as closely as possible to the edge of the building closest to the street. Public Works Department 82. Improvement plans and/or precise grading plans shall conform to applicable City of Temecula standards subject to approval by the Director of the Department of Public Works. The following design criteria shall be observed: a. Flowline grades shall be 0.5% minimum over P.C.C. and 1.00% minimum over A.C. paving. 83. Driveways shall conform to the applicable City of Temecula Standard No. 207A. a. Street lights shall be installed along the public streets adjoining the site in accordance with City Standard No. 800, 801, 802 and 803. b. Concrete ramps shall be constructed along public street frontages in accordance with City of Temecula Standard Nos. 400. 401 and 402. c. All street and driveway centerline intersections shall be at 90 degrees. d. Landscaping shall be limited in the corner cut-off area of all intersections and adjacent to driveways to provide for minirnum sight distance and visibility. 84. The Developer shall construct the following public improvements to City of Temecula General Plan standards unless otherwise noted. Plans shall be reviewed and approved by the Director of the Department of Public Works. a. Improve Ynez Road (Major Highway Standards - 100 foot R/W) along property frontage to include installation of sidewalk, signing and striping, utilities (including but not limited to water and sewer), and a 14 foot wide raised landscaped median. b. The signal at the intersection of Ynez Road and County Center Drive shall be modified to accommodate full movement. c. Provide a dedicated right turn lane on Ynez Road onto the project's main entry - 10 feet wide by 150 feet long with a 120 feet transition. 85. The Developer shall construct the following public improvements in conformance with applicable City standards and subject to approval by the Director of the Department of Public Works: a. Street improvements, which may include, but not limited to: median, sidewalk, drive approaches, signing, striping, traffic signal systems, and other traffic control devices as appropriate G:IPlanning\2006\PA06-0213 Temecula Water Park CUP\PlanninglDraft COAs.doc 15 b. Storrn drain facilities c. Sewer and domestic water systems 86. A construction area Traffic Control Plan shall be designed by a registered Civil or Traffic Engineer and reviewed by the Director of the Department of Public Works for any street closure and detour or other disruption to traffic circulation as required by the Departrnent of Public Works. 87. The building pad shall be certified to have been substantially constructed in accordancewith the approved Precise Grading Plan by a registered Civil Engineer, and the Soil Engineer shall issue a Final Soil Report addressing corn paction and site conditions. 88. The Developer shall pay to the City the Public Facilities Development Impact Fee as required by, and in accordance with, Chapter 15.06 of the Temecula Municipal Code and all Resolutions implementing Chapter 15.06. 89. The Developer shall pay to the City the Western Riverside County Transportation Uniform Mitigation Fee (TUMF) Program as required by, and in accordance with, Chapter 15.08 of the Temecula Municipal Code and all Resolutions implernenting Chapter 15.08. Building and Safety Department 90. Provide appropriate stamp of a registered professional with original signature on plans prior to permit issuance. Fire Prevention 91. Prior to building construction, all locations where structures are to be built shall have approved temporary Fire Department vehicle access roads for use until permanent roads are installed. Temporary Fire Department access roads shall be an all weather surface for 80,000 Ibs. GVW (CFC 8704.2 and 902.2.2.2). 92. Prior to building final, all locations where structures are to be built shall have approved Fire Department vehicle access roads to within 150 feet to any portion of the facility or any portion of an exterior wall of the building(s). Fire Department access roads shall be an all weather surface designed for 80,000 Ibs. GVW with a minimum AC thickness of .25 feet (CFC see 902). 93. Fire Department vehicle access roads shall have an unobstructed width of not less than twenty-four (24) feet and an unobstructed vertical clearance of not less than thirteen feet six (6) inches (CFC 902.2.2.1). 94. Priorto building construction, dead end road ways and streets in excess of one hundred and fifty (150) feet which have not been completed shall have a turnaround capable of accommodating fire apparatus (CFC 902.2.2.4). 95. Prior to building construction, this development shall have two (2) points of access from Ynez Road, via all weather surface roads and one (1) point of access into the grounds. The bridges going in to the center island do not require vehicle access and was approved by the Fire Prevention Bureau (CFC 902.2.1). G:\Planning\2006\PA06-0213 Temecula Water Park CUP\Planning\Draft COAs.doc 16 96. Prior to issuance of building permits, the developer shall furnish one copy of the water system plans to the Fire Prevention Bureau for approval prior to installation. Plans shall be signed by a registered civil engineer; contain a Fire Prevention Bureau approval signature block; and conform to hydrant type, location, spacing and minimum fire flow standards. After the plans are signed by the local water company, the originals shall be presented to the Fire Prevention Bureau for signatures. The required water system including fire hydrants shall be installed and accepted by the appropriate water agency prior to any combustible building materials being placed on an individual lot (CFC 8704.3, 901.2.2.2 and National Fire Protection Association 24 1-4.1). Community Services Department 97. The developer shall provide TCSD verification of arrangements made with the City's franchise solid waste hauler for disposal of construction debris. 98. The developer shall post security and enter into an agreement to install the landscaped median on Ynez Road. 99. The trash compactor, location and enclosure (if any) will be reviewed and approved by Planning Department, Community Services Department and the City's franchised trash hauler. 100. Prior to the first building permit or installation of street lights on Ynez Road which ever occurs first, the developer shall complete the TCSD application process, submit an Edison Streetlight Plan and pay the appropriate energy fees related to the transfer of street lighting into the TCSD maintenance program. G:\Planning\2006\PA06-0213 Temecula Water Park CUP\Planning\Draft COAs.doc 17 PRIOR TO RELEASE OF POWER, BUILDING OCCUPANCY OR ANY USE ALLOWED BY THIS PERMIT G:IPlanning\2006IPA06-0213 Temecula Water Park CUPIPlanninglDraft COAs.doc 18 Planning Department 101. Prior to the release of power, occupancy, or any use allowed by this permit, the applicant shall be required to screen all loading areas and roof mounted mechanical equipmentfrom view of the adjacent residences and public right-of-ways. If upon final inspection it is determined that any mechanical equipment, roof equipment or backs of building parapet walls are visible from any portion of the public right-of-way adjacent to the project site, the developer shall provide screening by constructing a sloping tile covered mansard roof element or other screening if reviewed and approved by the Director of Planning. 102. All required landscape planting and irrigation shall have been installed consistent with the approved construction plans and shall be in a condition acceptable to the Director of Planning. The plants shall be healthy and free of weeds, disease, or pests. The irrigation system shall be properly constructed and in good working order. 103. Performance securities, in amounts to be determined by the Director of Planning, to guarantee the maintenance of the plantings in accordance with the approved construction landscape and irrigation plan shall be filed with the Planning Department for a period of one year from final certificate of occupancy. After that year, if the landscaping and irrigation system have been maintained in a condition satisfactory to the Director of Planning, the bond shall be released upon request by the applicant. 104. Each parking space reserved for the handicapped shall be identified by a permanently affixed reflectorized sign constructed of porcelain on steel, beaded text or equal, displaying the International Symbol of Accessibility. The sign shall not be smaller than 70 square inches in area and shall be centered at the interior end of the parking space at a minimum height of 80 inches from the bottom of the sign to the parking space finished grade, or centered at a minimum height of 36 inches from the parking space finished grade, ground, or sidewalk. A sign shall also be posted in a conspicuous place, at each entrance to the off- street parking facility, not less than 17 inches by 22 inches, clearly and conspicuously stating the following: "Unauthorized vehicles parked in designated accessible spaces not displaying distinguishing placards or license plates issued for persons with disabilities may be towed away at owner's expense. Towed vehicles may be reclaimed by telephoning (951) 696-3000." 105. In addition to the above requirements, the surface of each parking place shall have a surface identification sign duplicating the Symbol of Accessibility in blue paint of at least three square feet in size. 106. All site improvements including but not limited to parking areas and striping shall be installed prior to occupancy or any use allowed by this permit. 107. All of the foregoing conditions shall be complied with prior to occupancy or any use allowed by this permit. Public Works Department 108. The project shall demonstrate that the pollution prevention BMPs outlined in the WQMP have been constructed and installed in conformance with approved plans and are ready for immediate implementation. G:IPlanning\2006IPA06-0213 Temecula Water Park CUPIPlanninglDraft COAs.doc 19 109. As deemed necessary by the Department of Public Works, the Developer shall receive written clearance from the following agencies: a. Rancho California Water District b. Eastern Municipal Water District c. Department of Public Works 110. All public improvements, including traffic signals, shall be constructed and completed perthe approved plans and City standards to the satisfaction of the Director of the Department of Public Works. 111. The existing improvements shall be reviewed. Any appurtenance damaged or broken shall be repaired or removed and replaced to the satisfaction of the Director of the Department of Public Works. Fire Prevention 112. Prior to issuance of a Certificate of Occupancy or building final, "Blue Reflective Markers" shall be installed to identify fire hydrant locations (CFC 901.4.3). 113. Prior to issuance of a Certificate of Occupancy or building final, approved numbers or addresses shall be provided on all new and existing buildings in such a position as to be plainly visible and legible from the street or road fronting the property. Numbers shall be of a contrasting color to their background. Commercial, multi-family residential and industrial buildings shall have a minimum twelve (12) inches numberswith suite numbers a minimum of six (6) inches in size. All suites shall gave a minimum of six (6) inch high letters and/or numbers on both the front and rear doors (CFC 901.4.4). 114. Prior to issuance of Certificate of Occupancy or building final, based on square footage and type of construction, occupancy or use, the developer shall install a fire sprinkler system. Fire sprinkler plans shall be submitted to the Fire Prevention Bureau for approval prior to installation (CFC Article 10, CBC Chapter 9). 115. Prior to issuance of Certificate of Occupancy or building final, based on a requirement for monitoring the sprinkler system, occupancy or use, the developer shall install an fire alarm system monitored by an approved Underwriters Laboratory listed central station. Plans shall be submitted to the Fire Prevention Bureau for approval priorto installation (CFC Article 10). 116. Prior to the issuance of a Certificate of Occupancy or building final, a "Knox-Box" shall be provided. The Knox-Box shall be installed a minimum of six (6) feet in height and be located to the right side of the'main entrance door. Application for the Knox-Box may be obtained from the Fire Prevention Bureau (CFC 902.4). 117. All manual and electronic gates on required Fire Department access roads or gates obstructing Fire Department building access shall be provided with the Knox Rapid entry system for emergency access by fire fighting personnel (CFC 902.4). 118. Prior to final inspection of any building, the applicant shall prepare and submit to the Fire Department for approval, a site plan designating Fire Lanes with appropriate lane painting and or signs. G:IPlanning\2006IPA06-0213 Temecula Water Park CUPIPlanninglDraft COAs.doc 20 119. Prior to the issuance of a Certificate of Occupancy or building final, the developer/applicant shall be responsible for obtaining underground and/or aboveground tank permits for the storage of combustible liquids, flammable liquids or any other hazardous materials from both the County Health Department and Fire Prevention Bureau (CFC 7901.3 and 8001.3). 120. The applicant shall comply with the requirements of the Fire Code permit process and update any changes in the items and quantities approved as part of their Fire Code permit. These changes shall be submitted to the Fire Prevention Bureau for review and approval per the Fire Code and is subject to inspection (CFC 105). 121. The applicant shall submit for review and approval by the Riverside County Department of Environmental Health and City Fire Department an update to the Hazardous Material Inventory Statement and Fire Department Technical Report on file at the city; should any quantities used or stored onsite increase or should changes to operation introduce any additional hazardous material not listed in existing reports (CFC Appendix II-E). Community Services Department 122. The landscaped median on Ynez Road shall be completed to the satisfaction of the Director of Community Services. Outside Agencies 123. Flood protection shall be provided in accordance with the Riverside County Flood Control District's transmittal dated August 7,2006, a copy of which is attached. The fee is made payable to the Riverside County Flood Control Water District by either a cashier's check or money order, prior to the issuance of a grading permit (unless deferred to a later date by the District), based upon the prevailing area drainage plan fee. 124. The applicant shall comply with the recommendations set forth in the County of Riverside Department of Environmental Health's transmittal dated August 14, 2006, a copy of which is attached. 125. The applicant shall comply with the recommendations set forth in the Rancho California Water District's transmittal dated July 28,2006, a copy of which is attached. 126. The applicant shall comply with the recommendations set forth in the City of Temecula Police Department transmittal dated July 27,2006, a copy of which is attached. By placing my signature below, I confirm that I have read, understand and accept all the above 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\2006\PA06-0213 Temecula Water Park CUP\PJanning\Draft CQAs.doc 21 WARREN D. WILLIAMS General Manager-ChiefEngineer 1995 MARKET STREET RIVERSIDE, CA 92501 951.955.1200 951.788.9965 FAX lD~ ~ (?'-'I"'" -- ~ ,'- LS ~G,. :1 ~~~\Ol= jI -:../~!J 'Gt f=:J Inl = U il AUG 0 8 2006 8y ~a" --- nrllng D8Pa"';"i':':::~--'" ., ,I i "~,,nl City ofT emecula Planning Department Post Office Box 9033 Temecula, California 92589-9033 Attention: c.t-\1Z-\.$n,J~ ~~ Ladies and Gentlemen: RIVERSIDE COUNTY FLOOD CONTROL AND WATER CONSERVATION DISTRICT Re: 'f'AD"-OU~ The District does not normally recommend conditions for land divisions or other land use cases in incorporated cities. The District also does not plan check city land use cases, or provide State Division of Real Estate letters or other flood hazard reports for such cases. District comments/recommendations for such cases are normally limited to items of specific interest to the District including District Master Drainage Plan facilities, other regional flood control and drainage facilities which could be considered a logical component or extension of a master plan system, and District Area Drainage Plan fees (development mitigation fees). In addition, information of a general nature is provided. The District has not reviewed the rroposed project in detail and the following checked comments do not in any way constitute or imply District approva or endorsement of the proposed project WIth respect to flood hazard, public health and safety or any other sucli Issue: . No comment. 7- This project would not be impacted by District Master Drainage Plan facilities nor are other facilities of regional Interest proposed. . This project involves District Master Plan facilities. The District will accept ownership of such facilities on . written request of the City. Facilities must be constructed to District standards, and District plan check and insp~ction will be required for District acceptance. Plan check, inspection and administrative fees will be reqUired. . This project proposes channels, storm drains 36 inches or larger in diameter or other facilities that could be conSidered regional in nature and/or a logical extension of the adopted Master Drainage Plan. The District would consider acce"ting ownership Of such facilities on wntten request of the City. Facilities must be constructed to District standards, and District plan check and inspection WIll be required for District acceptance. Plan check, inspection and administrative fees will be required. . )<.This project is located within the limits of the District's ~1!'\'IA-~-~tt:fI\.II"I."'/l-W'l1\rea Drainage Plan for which drainage fees have been ado~ted; applicable fees should be paid by cashiers check or money order only to the Flood Control District or Ci prior to issuance of grading permits. Fees to be paid should be at the rate in effect at the time of issuance 0 the actual permit. . An encroachment permit shall be obtained for any construction related activities occurring within District right of way or facilities. For further information, contact the District's encroachment permit section at 951.955.1266. . GENERAL INFORMATION This project may require a National Pollutant Discharge Elimination System (NPDES) permit from the State Water Resources Control Board. Clearance for grading, recordation, or other final approval should nolbe given until the City has determined that the project has been grantea a permit or is shown to be exempt. . If this project involves a Federal Emergency Management Agency (FEMA) mapped flood plain, then the City should require tfle applicant to provide all studies calculations, plans and other Information required to meel FEMA requirements, and should further require that the applicant obtain a Conditional Letter of Map Revision iCLOMR) prior to grading, recordation or other final approval of the project, and a Letter of Map Revision (LOMR) prior to occ~pancy. If a natural watercourse or mapped flood plain.is impacted by this prot'ect, the City should require the applicant to obtain a Section 1601/1603 Agreement from the California Departmen of Fish and Game and a Clean Water Act Section 404 Permit from.the U.S. Army Corps of Engineers, or written correspondence from these agencies indicating the "roject is exempt from these requirements. A Clean Water Act Section 401 Water Quality Certification may be requirea from the local California Regional Water Quality Control Board prior to issuance of the Corps 404 permit. Very truly yours, ~'d-; ARTURO DIAZ Senior Civil Engineer Date: e-;7-.61~ Riverside County Planning Department Altn: David Mares c: -fw.- I I' ,! il;i D C6JNTY Of RI\fERSIDE . HEA[lrl. SERVICES AGENCY D DEPARTMENT OF ENVIRONMENTAL HEALTH August 14,2006 City of Temecula Planning Department P.O. Box 9033 Temecula, CA 92589-9033 Attention: Christine Darnko RE: Development Plan No. PA06-0213 ~D f2 (rD"-. I i-' i is \o.~ L::, II I, , "" " U. AUI) 1 Q 2006 Dear Ms. Darnko: Department of Environmental Health has reviewed the development plan with a Conditional Use Permit for a 13,000 square foot water park located on the northwest intersection of Ynez Road and County Center Drive (Former Pre-App, PR06-0015) does indicate water and sewer services exist, and we assume that these services are in and are available. .Y r'\-:")(x:ntrnent 1. PRIOR TO THE ISSUANCE OF BUILDING PERMITS THE FOLLOWING SHOULD BE REQUIRED: a) "Will-serve" letters from the appropriate water district (APN 910-271-002). 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) 461.0284. c) Swimming pools must be submitted to the Department of Environmental Health pool plan section at 951-461-0284. Sincerely, JJ#JI Gregor Dellenbach, REHS (951) 955-8980 NOTE: Any current additional requirements not covered can be applicable at time of Building Plan review for final Department of Environmental Health clearance. Local Enforcement Agency e P.O. Box 1280, Riverside, CA 92502-1280 ~ (909) 955-8982 0 FAX (909) 781-9653 . 4080 Lemon Street, 9th Floor, Riverside, CA 92501 Land Use and Water Engineering. P.O. Box 1206, Riverside, CA 92502-1206 ~ (909) 955-8980 . FAX (909) 955-8903 0 4080 Lemon Street, 2nd Floor, Riverside, CA 92501 @ Rancha Water Board of Directors Ben R. Drake President Stephen. J. Corona Sr. Vice President Ralph H. Daily Lisa D. Herman John E. Hoagland Michael R. McMillan William E. Plummer Officers: Brian J. Brady General Manager Phillip L Forbes Assistant General Manager! Chief Financial Officer E. P. "Bob" Lemons Director of Engineering Perry R. Louck Director of Planning JeffD.Armstrong Controller Kelli E. Garcia District Secretary C. Michael Cowett Best Best & Krieger LLP General Counsel July 28, 2006 Christine Damko, Project Planner City of Temecula Planning Department 43200 Business Park Drive Post Office Box 9033 Temecula, CA 92589-9033 ~~~~r~. 0 W~I.rll A"^ · ,I ""- (\ C) 2006 ! W" I '-ll.) J G !........,)' By Planning Depariment SUBJECT: WATER AVAILABILITY PROPOSEDTEMECULA WATER PARK PARCELS NO.3, NO.4, AND NO.5 OF PARCEL MAP NO. 27239 AND PORTIONS OF PARCEL NO.2 AND NO.3 OF PARCEL MAP NO. 19677; APN 910-271-002, APN 910-271- 005, APN 910-271-006, APN 910-271-007, AND APN 910-271- 008; CITY PROJECT NO. P A06-0213 [CLEARWATER W ATERPARK DEVELOPMENT] Dear Ms. Damko: Please be advised that the above-referenced property is located within the boundaries of Rancho California Water District (RCWD). Water service, therefore, would be available upon construction of any required on-site and/or off- site water facilities and the completion of fmancial arrangements between RCWD and the property owner. If fire protection is required, the customer will need to contact RCWD for fees and requirements. Water availability would be contingent upon the property owner signing an Agency Agreement that assigns water management rights, if any, to RCWD. . This project should be conditiom:d to use re-eyc1ed water for all landscape irrigation. . If you should have any questions, please contact an Engineering Services Representative at this office. Sincerely, RANCHO CALIFORNIA WATER ISTRICT 7!JA . Michael G. Meyerpeter, .E. Acting DevelopmentEngineering Manager cc: Laurie Williams, Engineering Services Supervisor 06\MM:at252\FEG Rancho California Water District 42135 Winche~ter Road ."Post Office Box 9017 e Temecula, California 92589-9017 e (951) 296-6900 . FAX (951) 296-.6860 www.ranchowater.com TEMECULA POLICE DEPARTMENT Crime Prevention & Plans Unit 28410 Old Town Front Street. Suite 105, Temecula, CA 92590 (951) 695-2773 Fax: (951) 506-5708 Date: July 27,2006 PA06-0213. Project Number: Project Type: Development Plan Project Name: Temecula Water Park Project Description: A Development Plan with a Conditional Use Permit for a 13,000 square foot water park located at the North West intersection of Ynez Road and County Center Drive Clearwater Water Park Development Applicant: Case Planner: Christine Damko The following pertains to Officer Safety, Public Safety and Crime Prevention measures regarding this planning project transmittal. 1. Landscaping: Applicant shall ensure all landscaping surrounding all buildings are kept at a height of no more than three feet (3') or below the ground floor windowsills. Plants. hedges and shrubbery should be defensible plants to deter would-be intruders from breaking into the buildings utilizing lower level windows. All landscaping surrounding all waterslide attractions will be maintained at a level so as not to interfere with the safe operation of each attraction. a. Applicant shall ensure all trees surrounding all building roof tops and water attractions be kept at a distance so as to deter roof accessibility by ''would-be burglars." Trees also act as a natural ladder. Prune tree branches with at least a 6 feet clearance from all buildings and water attractions. b. Any burms should not exceed 3' in height. c. The placement of all landscaping should follow the recommendations from Crime Prevention through Environmental Design (CPTED) guidelines.. 2. Lighting: All parking lot lighting surrounding the complex should be energy-saving and minimized after hours of darkness and in compliance with the State of California Lighting Ordinance. Califomia Government Code 8565. Furthermore. recommend all exterior lighting be in compliance with Mt. Palomar Lighting Ordinance 665 requiring low-pressure sodium lighting. a. Recommend all exterior doors have their own vandal resistant fixtures installed above each door. The doors should be illuminated with a minimum one (1) foot candle illumination at ground level, evenly dispersed. b. All exterior night lighting should be wall mount light fixtures to provide sufficient lighting during hours of darkness and to prevent problems on the premises. c. The Governors Order to address the power crisis became effective March 18, 2001. This bill calls for a substantial reduction from businesses to cut usage during non-business hours. The order, in part, states: "All Califomia retail establishments, including but not limited to shopping centers, auto malls and dealerships, shall substantially reduce maximum outdoor lighting capability during non-business hours except as necessary for the health and safety of the public, employees or property." d. "Failure to comply with this order following a waming by law enforcement officials shall be punishable as a misdemeanor with a fine not to exceed $1,000.00 in accordance with section 8565 of the California Government Code." 3. Hardware: Recommend all doors, windows, locking mechanisms, hinges, and other miscellaneous hardware is commercial or institution grade. 4. Graffiti: Any graffiti painted or marked upon the buildings should be removed or painted over within twenty-four (24) hours of being discovered. Photographs of the graffiti should be taken and forwarded to the Temecula Police Department, attn: Crime Analysis. Report all crimes to the Temecula Police 24-hour dispatch center (951) 696-HELP. 5. Alarm System: Upon completion of construction, the buildings shall have a mpnitored alarm system installed and monitored 24-hours a day by a designated private alarm company, to notify the Temecula Police Department of any intrusion. 6. Roof Hatches: All roof hatches shall be painted "International Orange." 7. Public Telephones: Any public telephones located on the exterior of the buildings 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 interibr of the buildings. 8. Marked Parking for Disabled Vehicles: All disabled parking stalls on the premises shall be marked in accordance with section 22511.8 of the California Vehicle Code. 9. Crime Prevention: a. All retailing businesses shall contact the Califomia Retailers Association for their booklet on the California Retail Theft Law at: California Retailers Association 1127-11th Street, Suite 1030, Sacramento, CA 95814 (916) 443-1975. Penal Code 490.5 affords merchants the opportunity to recover their losses through a civil demand program. b. Business desiring a business security survey of their location can contact the Crime Prevention and Plans Unit of the Temecula Police Department. c. Employee training regarding retail theft, credit card prevention, citizen's arrest procedures, personal safety, business security, shoplifting or any other related crime prevention training procedures is also available through the crime prevention unit. d. If the applicant plans on applying for a separate alcoholic beverage control license, a separate conditional use permit/public convenience and necessity request must be submitted. Applicantwill comply with all guidelines of the California Business and Profession Codes and all other guidelines associated with the State Department of Alcoholic Beverage Control. Contact the Temecula. Police Department for inspections and training for employees, management . and owners: This includes special events held on location where alcohol will be serviced for a fee and the event is open to the general public. e. The Temecula Police Department affords all retailers the opportunity to participate in the "Inkless Ink Program." At a minimal cost of less than $40.00 for inkless inkpads, retailers can take a thumbprint of every customer using a personal check to pay for services. A decal is also. posted on the front entry of the business-advising customers of the "Inkless Ink program in use". If the business becomes a victim of check fraud, the police department will be able to track the suspect with the thumbprint. Any questions regarding these comments shall be referred to the Temecula Police Department Crime Prevention and Plans Officer at (951) 695-2773. Lynn N. Fanene, Sr. ATTACHMENT NO.4 INITIAL STUDY G:IPlanning\2006IPA06-0213 Temecula Water Park CUPIPlanninglPC Staff Report.doc 13 City of Temecula Planning Department Notice of Proposed Negative Declaration PROJECT: Temecula Water Park, Planning Application No. PA06-0213 APPLICANT: Clearwater Waterpark Development LOCATION: Northwest intersection of Ynez Road and County Center Drive DESCRIPTION: The proposed project is the site development and construction of a 13,000 square foot water park located on approximately 15 acres consisting of pools, slides, and other types of water rides, concession stands, gift shop, party room, changing room with lockers, restrooms, picnic areas, service yard, and an associated parking lot. The City of Temecula intends to adopt a Negative Declaration for the project described above. Based upon the information contained in the attached Initial Environmental Study and pursuant to the requirements of the California Environmental Quality Act (CEQA); it has been determined that this project as proposed, revised or mitigated will not have a significant impact upon the environment. As a result, the Planning Commission intends to adopt a Negative Declaration for this project. The Comment Period for this proposed Negative Declaration is September 28, 2006 to October 17, 2006. Written comments and responses to this notice should be addressed to the contact person listed below at the following address: City of Temecula, P.O. Box 9033, Temecula, CA 92589-9033. City Hall is located at 43200 Business Park Drive. The public notice of the intent to adopt this Negative Declaration is provided through: (Phase One will be approved administratively; Phase Two will be heard by the Planning Commission) .x The Local Newspaper. L Posting the Site. .x Notice to Adjacent Property Owners. If you need additional information or have any questions concerning this project, please contact Christine Damko at (951) 694-6400. Prepared by: Christine Damko, Associate Planner (Name and Title) G:\Planning120061PA06-0213 Temecula Water Park CUPIPlanningINOTICE OF PROPOSED NEGATIVE DECLARATION. doc I City of Temecula P.O. Box 9033, Temecula, CA 92589-9033 Environmental Checklist . Project Title Temecula Water Park IPlannino Aoolication No. PA06-02131 Lead Agency Name and Address City of Temecula P.O. Box 9033, Temecula, CA 92589-9033 Contact Person and Phone Number Christine Damko, Associate Planner (951) 694-6400 Project Location The project site is located east of and abutting Interstate 15, west of and abutting Ynez Road, and north of Winchester Road in the City of Temecula. It is within unsectioned land of Township 8 South and Range 3 West of the Temecula U.S. Geological Survey (USGS) 7.5- minute topographic quadrangle. Project Sponsor's Name and Address Stan Berney 303 Broadway, Suite 212 Laouna Beach, CA 92651 General Plan Desionation Service Commercial ISCI Zonino Service Commercial ISCI Description of Project The proposed project is the site development and construction of a 13,000 square foot water park on 15 acres consisting of pools, slides, and other types of water rides, concession stands, gift shop, party room, changing room with lockers, restrooms, picnic areas, service yard, and parking lot. The water park will be operating approximately four months of the calendar year. The park will be open daily from Memorial Day to Labor Day from 10:00am to 8:00prn. It is anticipated that the park will retain 15 full time emolovees and 300 seasonal emolovees. Surrounding Land Uses and Setting The site is surrounded by industrial and office buildings located to the north, east, and south. The building to the south also includes a gyrn. The west side of the property abuts the Interstate 15 freeway. The furthest north corner of the property is located next to vacant, graded land. Approximately one rnile north of the site is the Harveston Specific Plan which includes an estimated 1,900 residences. The Harveston Sports Park which is located less than one mile north east of the site. Other public agencies whose approval None is reouired Use of this Initial Study -:- This Initial Study is intended to evaluate the environmental effects and irnpacts associated with the proposed project. The final approval for the proposed project and this Initial Study is expected to be made by the City Planning Commission. G:IPlanning\2006IPA06-0213 Temecula Water Park CUPIPlanningllnitial Environmental Study.doc 1 Environmental Factors Potentially Affected The environmental factors checked below would be potentially affected by this project, involving at least one impact that is a "Potentially Significant Impact" as indicated by the checklist on the following pages. Aesthetics Mineral Resources AQriculture Resources X Noise X Air Quality Population and Housina BioloQical Resources Public Services Cultural Resources Recreation Geology and Soils X Transportation/Traffic Hazards and Hazardous Materials Utilities and Service Svstems HydroloQY and Water Quality Mandatorv Findinas of Sianificance Land Use and PlanninQ None Determination (To be completed by the lead agency) . On the basis of this initial evaluation: I find that the proposed project COULD NOT have a significant effect on the environrnent, and a NEGATIVE DECLARATION will be prepared. ,( I find that although the proposed project could have a significant effect on the environment, there will not be a significant effect in this case because revisions in the project have been made by or agreed to by the project proponent. A MITIGATED NEGATIVE DECLARATION will be Prepared. I find that the proposed project MAY have a significant effect on the environment, and an ENVIRONMENTAL IMPACT REPORT is reauired. I find that the proposed project MAY have a "potentially significant impact" or "potentially significant unless mitigated" impact on the environment, but at least one effect 1) has been adequately analyzed in an earlier document pursuant to applicable legal standards, and 2) has been addressed by mitigation measures based on the earlier analysis as described on attached sheets. An ENVIRONMENTAL IMPACT REPORT is reauired, but it must analvze only the effects that remain to be addressed. I find that although the proposed project could have a significant effect on the environment, because all potentially significant effects (a) have been analyzed adequately in an earlier EIR or NEGATIVE DECLARATION pursuant to applicable standards, and (b) have been avoided or mitigated pursuant to that earlier EIR or NEGATIVE DECLARATION, including revisions or mitigation measures that are imposed upon the proposed oroiect, nothina further is reauired. ~Il)~Q)~~ Si ature . q jd- [p / rJ(p . Date Christine Damko Printed Name City of Temecula For G:IPlanning\2006IPA06-0213 Temecula Water Park CUPIPlanningllnitial Environmental Study.doc 2 1. AESTHETICS. Would the project: a. b. IssuesandSu Have a substantial adverse effect on a scenic vista? Substantially damage scenic resources, including, but not limited to, trees, rock outcroppings, and historic buildin s within a state scenic hi hwa ? Substantially degrade the existing visual character or ualit of the site and its surroundin s? Create a new source of substantial light or glare which would adversely affect day or nighttime views in the area? FO,t~r1ti~lly Sigl]ifi,cat:ilu'n1ess Miti9Citio,n Inco....orated ",. ",. c. ",. d. ",. Comments: 1.a. No Impact: The proposed project is on vacant land. No scenic vistas have been identified per the City's General Plan or will be adversely impacted from developing the proposed project. No impacts are expected. 1.b. No Impact: No major rock outcroppings or historic buildings exist on the project site. The project site is not located on a scenic highway. No impacts are expected. 1.c. Less Than Significant Impact: The area surrounding the project consists of the Interstate 15 freeway directly to the west, a church and an industrial building to the north, and industrial/office buildings to the east and south. The Harveston Specific Plan is located less than 1 mile north of the project site, however residents within that Specific Plan will have a low aesthetic impact from the proposed development since existing industrial and office buildings block the views. The water park will be partially visible to the traffic on the Interstate 15 northbound and southbound, specifically the rides located near the west side of the property. The existing landscaping located adjacent to the freeway and a proposed garden wall with additional landscaping will aid in screening the project. Employees and visitors driving to the industrial buildings located adjacent to the site will be affected the most and the water park will substantially change the existing character of the surrounding area. This project, however, will not degrade the existing character of the area. The City's Development Code and Design Guidelines establish design and landscaping standards which will ensure that the project site is developed in a manner consistent with the City's standards. The project site will have landscaped screening and decorative walls around the entire perimeter of the site to help screen the project from the surrounding area. Based on fulfilling these design standards, project aesthetic impacts are anticipated to be less than significant. . 1.d. Less Than Significant Impact: The proposed project site is currently vacant with no sources of light or glare. The proposed project will introduce new generators of light and glare. However, the surrounding uses will typically not be open for business in the evening. In addition this project will be constructed in accordance with zoning development standards including rnaximum height, landscape buffers, and the Mount Palomar Lighting Ordinance. The City of Temecula requires all new development to comply with the Riverside County Mount Palomar Ordinance 655. Ordinance 655 requires lighting to be shielded, directed down to avoid glare onto adjacent properties and emit low levels of glare into the sky. Less than significant impacts are anticipated as a result of the project. G:\Planning\2006\PA06-02J 3 Temecula Water Park CUP\PJanning\lnitial Environmental Study.doc 3 2. . AGRICULTURE RESOURCES. In determining whether impacts to agricultural resources are significant environmental effects, lead agencies may refer to the California Agricultural Land Evaluation and Site Assessment Model (1997) prepared by the California Department of Conservation as an optional model to use in assessing impacts on agriculture and farmland. Would the project: a. Issues and $uortin Convert Prime Farmland, Unique Farmland, or Farmland of Statewide Importance (Farmland), as shown on the maps prepared pursuant to the Farmland Mapping and Monitoring Program of the California Resources A enc ,to non-a ricultural use? Conflict with existing zoning for agricultural use, or a Williamson Act contract? Involve other changes in the existing environment which, due.to their location or nature, could result in conversion of Farmland, to non-a ricultural use? P<Mrlticl11y, ~igrlifjc~nfUnless, Mjtig~tibr"l: InCOi'orated b. -/ c. -/ Comments: 2.a. Less Than Significant Impact: According to Figure 5.2-1 labeled "Agricultural Resources" in the Agricultural Resources, Section OS-30 of the General Plan, the project is in an area of farmland of local importance. However, the 15 acre site is surrounded by industrial development and there are no other imrnediate properties in the vicinity of the project which have been allocated for farmland use. The subject site is not currently being used for agricultural purposes, and the City's General Plan Land Use Element has designated the site for Service Commercial uses. Therefore, there will be less than significant impacts as a result from the project. 2.b-c. No Impact The site is not under a Williamson Act contract nor is it zoned for agricultural uses. This property is not considered prime or unique farmland of statewide or local importance as identified by the State Department of Conservation and the City of Temecula General Plan. In addition, the project will not involve changes in the existing environrnent, which would result in the conversion oUarmland to non-agricultural uses. No impact is anticipated from this proposed project. G:IPlanning\2006IPA06-0213 Temecula Water Park CUPIPlanningllnitial Environmental Study.doc 4 3. AIR QUALITY. Where available, the significance criteria established by the applicable air quality management or air pollution control district may be relied upon to make the following determinations. Would the project: a. -/ e()~E:lfltiall)i S,ignifiqaQt;Ul)less: Miti,9#ti@ lnc6brated Conflict with implementation of the a licable air Violate any air quality standard or contribute substantially to an existing or projected air quality violation? Result in a cumulatively considerable net increase of any criteria pollutant for which the project region is non- attainment under an applicable federal or state ambient air quality standard (including releasing emissions which exceed quantitative thresholds for ozone recursors ? Expose sensitive receptors to substantial pollutant concentrations? Create objectionable odors affecting a substantial number of eo Ie? b. -/ c. -/ d. -/ -/ e. Comments: 3.a. No Impact: An Air Quality Impact Analysis Report was prepared by Michael Brandman Associates dated August 21, 2006. The proposed project will not conflict or obstruct the implementation of the Air Quality Management Plan for the South Coast Air Basin. Furthermore, the project will comply with the provisions of the Plan and the City's General Plan Air Quality Element policies and goals. As a result, no adverse impacts are forecast and no mitigation is required. 3.b-c. Potentially Significant Unless Mitigation Incorporated: Some short term construction-related air quality impacts are expected to occur as a result of this project. These short term impacts are expected to occur from onsite grading activities and from the actual construction of the project. The potential air quality impacts ofthis project were assessed using the Air Quality Management District's URBEMIS 2002 model. Short-term emissions were evaluated with the URBEMIS 2002 for Windows computer program. The URBEMIS 2002 model sets default values for worker trips and the use of asphalt. Model inputs include the projected type of land use, the year in which construction is to begin, and the length of the construction period. For the purpose of this analysis as a worst-case scenario, it is assumed that painting and asphalt paving would occur simultaneous with building activities. Construction is slated to begin in 2006 and the construction period is anticipated to require approximately one year to complete. Tables 3 through 5 summarize the results of these evaluations. G:IPlanning12006IPA06-0213 Temecula Water Park CUPIPlanningllnitial Environmental Study.doc 5 Table 3: Estimated Short-Term Emissions (Site Grading) 1 1 1 1 Fugitive Dust From Grading NG NG NG NG 37.50 Off-road Construction Equipment 103.96 127.35 15.59 NG 1 4.43 1 Commuting Traffic 0.32 3.47 0.17 NG 0.02 Emissions Totals (Ibs/day) 104.28 130.82 15.76 >0.01 41.95 SCAQMD Thresholds 100 Ibs/day 550 Ibs/day 75 Ibs/day 150 Ibs/day 150 Ibs/day Notes: 1 Criteria pollutants that have estimated negligible values are designated NG (negligible emissions). Table 4: Estimated Short-Term Emissions (Construction Period) Construction Equipment 28.76 30.04 3.94 NG 1 Commuting Traffic NG 1 0.06 NG 1 NG 1 Architectural Coating Application NG1 NG' 3.75 NG' Emissions Totals (Ibs/day) 28.76 30.10 7.69 >0.01 SCAQMD Thresholds 100 Ibs/day 550 Ibs/day 75 Ibs/day 150 Ibs/day Notes: 1 NG designates criteria pollutants that have estimated negligible values. 1.22 1 NG 1 NG 1.22 150 Ibs/day Table 5: Estimated Short-Term Emissions (Asphalt Paving) Off-road Asphalt Equiprnent 69.91 87.63 10.71 1 2.72 NG On-road Asphalt Equipment 3.85 0.74 0.20 0.01 0.08 Commuting Traffic 0.03 0.57 0.05 1 0.01 NG Asphalt Offgassing 1 1 0.95 1 1 NG NG NG NG Emissions Totals (Ibs/day) 73.79 88.94 11.91 0.Q1 2.81 SCAQMD Thresholds 100 Ibs/day 550 Ibs/day 75 Ibs/day 150 Ibs/day 150 Ibs/day Notes: 1 NG designates criteria pollutants that have estimated negligible values. When ernissions projections are compared with the SCAQMD thresholds for significance, it is shown that emissions exceed the applicable thresholds for NOx. The primary source of NOx is heavy equipment. In an effort to reduce estimated NOx emissions related to construction activities, a range of mitigation measures were considered. Effective NOx emission reduction measures include the use of construction equiprnent with lean NOx oxidation catalyst and/or reduction in equipment horsepower hours per day, providing temporary traffic control (e.g., flag person) during transport activities, properly maintaining construction equiprnent, prohibit truck and equipment idling in .excess of five minutes, provide on-site meals during lunch to construction workers by arranging to have a lunch wagon visit the site during work breaks, and use temporary electric power for electric power tools. G:IPlanning\2006IPA06-0213 Temecula Water Park CUPIPlanningllnitial Environmental Study.doc 6 Table 6 shows the estimated total short-term emissions with construction phase mitigation measures imposed upon the proposed project. Table 6: Mitigated Short-Term Emissions Grading Emissions Totals (Ibs/day) 93.88 Grading Exceed Threshold? NO Construction Emissions Totals (Ibs/day) 28.76 Construction Exceed Threshold? NO Asphalt Emissions Totals (Ibslday) 73.79 Paving Asphalt Exceed Threshold? NO Paving SCAQMD Thresholds 100 Ibs/day As shown in Table 6, rnitigated short-term emissions are below the all applicable SCAQMD suggested thresholds. An estimate of the daily total long-term project emissions is derived by combining both mobile and stationary emissions (natural gas consumption, consumer product consumption, paint applications, and landscape maintenance). Total daily emissions were estimated for summer and winter. Table 7, Composite Long-term Emissions-Summer, presents the estimated daily total emissions during the summer at project build out. G:IPlanning\2006IPA06-0213 Temecuia Water Park CUPIPlanningllnitial Environmentai Study.doc 7 Table 7: Composite Long-Term Emissions-Summer Mobile Emissions 6.75 69.83 5.10 0.05 6.97 Natural Gas 0.02 0.02 NG NG NG Consumption Landscape Emissions 0.01 2.07 0.31 NG 0.01 Painting activities NG NG 0.03 NG NG Emissions Totals 6.78 71.92 5.44 0.05 6.98 (Ibs/day) SCAQMD Thresholds 55 Ibs/day 550 Ibs/day 55 Ibs/day 150 Ibs/day 150 Ibs/day Note: NG designates criteria pollutants that have estimated negligible values. Table 8, presents the estimated daily total emissions during the wintertime at project build out. Table 8: Composite Long-Term Emissions-Winter Mobile Emissions 9.73 67.72 5.52 0.04 6.97 Natural Gas 0.02 0.02 NG NG NG Consumption Painting activities NG NG 0.03 NG NG Emissions Totals 9.75 67.74 5.55 0.04 6.97 (Ibs/day) SCAQMD Thresholds 55 Ibs/day 550 Ibs/day 55 Ibs/day 150 Ibs/day 150 Ibs/day Note: NG designates criteria pollutants that have estimated negligible values. When emissions projections are compared with the SCAQMD suggested thresholds for significance, it is shown that long-term emissions are below all the applicable thresholds. Carbon monoxide (CO) is a localized problern requiring additional analysis beyond total project emissions quantification. Projects with sensitive receptors or projects that could negatively impact levels of service (LOS) of existing roads need to use the "California Department of Transportation Carbon Monoxide Protocol" (hereafter referred to as the CO protocol) to determine the potential to create a CO hot spot. A CO hot spot is a localized concentration of CO that is above the State or Federal one-hour or eight-hour ambient air standards. Localized high levels of CO are associated with traffic congestion and idling or slow-moving vehicles. The CO protocol recommends using CALlNE4, the fourth generation California Line Source Roadway Dispersion Model developed by the California Department of Transportation (Caltrans), to estimate one-hour CO concentrations from roadway traffic. Input data for this model includes meteorology, street network geometries, traffic information, and emissions generation rates. Meteorological data required includes average temperatures, wind direction, sigma theta (standard deviation of wind direction), and wind speed. Street network geometries require the use of an x, y coordinate system onto which the modeled roadways can be overlain in order to identify the relative. G:\Planning\2006IPA06-0213 Temecula Water Park CUPIPlanningllnitial Environmental Study.doc 8 Required traffic information was taken from the project specific traffic study and includes peak hour traffic volumes and levels of service. Ernission factors were calculated in grams/mile/vehicle using the EMFAC2002 computer model. According to the CO protocol, the CALlNE4 model should simulate intersections by using a reduced speed to represent intersection speeds and waits. Therefore, the slowing speed approaching an intersection was calculated at an average speed of five miles per hour (mph) within 249 feet. This value was derived by calculating the time it would take for a vehicle to slow from 28 rnph at a rate of 4.6 mph/second and doubling this distance to account for any vehicles which have already stopped at the intersection. Vehicles outside of the 249-foot intersection approaches were assumed to be at a cruise speed of 28 mph as directed by the CO protocol for suburban traffic. The peak hour traffic volumes, when the worst-case LOS value occurred at each intersection, were used in this analysis because they represent the highest traffic volumes for both the project . area and the proposed project. Typically, the LOS at an intersection producing a hot spot is at D or worse during the peak hour. Five intersections meet this criterion including: . Winchester Road at Jefferson Avenue . Winchester Road at 1-15 NB Ramps . Winchester Road at Ynei Road . Winchester Road at Promenade Mall East Driveway . Winchester Road at Margarita The model procedure that was followed combined the results of the traffic analysis assuming very restrictive dispersion conditions in order to generate a worst-case impact assessment. Output from the CALlNE4 model is in one-hour CO concentrations in ppm at the selected receptor locations. The predicted one-hour CO concentrations were determined by adding the ambient background one-hour CO concentrations to the model projected one-hour CO concentration. The eight-hour CO concentration was estimated by multiplying the one- hour model estimate by the persistence factor for the project area (0.6) and adding the ambient background eight-hour CO concentration. Assuming worst-case conditions, the estimated one-hour and eight-hour average CO concentrations in combination with background concentrations are below the State and Federal ambient air quality standards. No CO hot spots are anticipated as a result of traffic generated emissions by the proposed project in combination with other anticipated development in the area. The AQMP contains performance standards and emissions reduction targets necessary to attain the state and federal AAQS. According to CARB's transportation performance standards, the rate of growth in vehicle miles traveled (VMT) and trips should be held to the rate of population growth. Compliance with this performance standard. for residential projects is one way suggested in the SCAQMD CEQA Air Quality Handbook of showing compliance with the AQMP and is assessed by determining the population, vehicle trips generated (VT) and VMT for the project at build-out year and cornparing that to the disaggregated population, VT and VMT for the project area assumed in the AQMP. If the total VMT generated by the proposed project at project build-out year is at or below the disaggregated total VMT for the project site assumed in the AQMP, then the proposed project is consistent with the AQMP. The URBEMIS 2002 model assigns trip generation and miles traveled for particular land uses. The SCAG population projections for year 2010 used in the AQMP for the City of Temecula assumes land use designations in the General Plan and includes build-out of the site. The project site under the current General Plan land use designation (Service Commercial) would accommodate up to a total of 339,420 square feet of commercial floor space. Table 9 compares the proposed project with the assumptions in the AQMP. G:IPlanning\2006\PA06-0213 Temecula Water Park CUPIPlanningllnitial Environmentai Study.doc 9 Table 9: AQMP Population, VT, and VMT Comparison With Proposed Project Variables AQMP Assumptions for Site Proposed Project at Build Out Land Use Designation Service Commercial Water Park Density 350,000 sq.ft. of floor space 15 acres of water park ITE Trip Generation Rate 10.07 ADTs per TSF See Traffic Study Average Daily Trips (ADTs) 3,525 802 VMT 20,191 4,595 Ih Sources: SCAQMD CEQA Handbook (1993), ITE Trip Generation 7 Edition The proposed project is below the number of VMT assumed in the AQMP based on the Service Commercial zoning. For this reason, it is appropriate to conclude that the proposed project is in compliance with the AQMP and there will be less than significant impacts with the following mitigation measures proposed: Prior to construction of the proposed improvements, the project proponent will provide a traffic control plan that will describe safe detours around the project construction site and provide temporary traffic control (Le., flag person) during construction related truck hauling activities. During construction of the proposed improvements, construction equipment will be properly maintained at an offsite location and includes proper tuning and timing of engines. Equipment maintenance records and equipment design specification data sheets shall be kept onsite during construction. During construction of the proposed improvements, all contractors will be advised not to idle construction equipment on site for more than 10 minutes. During construction of the proposed improvements, the project applicant will provide on-site meals to construction workers by arranging a lunch wagon to visit the construction site during work breaks including the lunch break. Prior to construction of the proposed improvements, the project proponent will provide a Dust Control Plan that will describe the application of standard best management practices to control dust during construction. Best management practices will include: . Application of water on disturbed soils and unpaved roadways a minimum of three times per day . Using track-out prevention devices at construction site access points . Stabilizing construction area exit points . Covering haul vehicles . Restricting vehicle speeds on unpaved roads to 15 miles per hour (mph) . Replanting disturbed areas as soon as practical and other measures, as deemed appropriate to the site, to control fugitive dust 3.d. No Impact: Sensitive receptors include the very young, elderly, and persons suffering from illness and are normally associated with locations such as schools, daycare facilities, convalescent care facilities, medical facilities, and residential areas. The closest potentially sensitive receptor is a church. Diesel emissions during the short-term construction activities are too low to pose an acute significant toxic air contaminant health hazard and they will not occur over the long-term. As a result, no significant impacts are expected with this project. G:IPlanning\2006IPA06-0213 Temecula Water Park CUPIPlanningllnitial Environmental Study.doc 10 With no significant potential exposure to toxic substances or to CO "Hotspots", the proposed project is not forecast to expose sensitive receptors to substantial pollutant concentrations that would be considered significant and adverse or exceed air quality significance thresholds with the inclusion of the identified mitigation measures. 3.e. No Impact: During construction the proposed project will contain operations that will produce odors associated with equipment and materials. The site is located within the vicinity of sensitive receptors, a church; however, the odors associated with this type project are normally not considered so offensive as to cause sensitive receptors to complain. Diesel fuel combustion odors from construction equipment, operation equipment, and new asphalt paving fall into this category. Both based on the short-term of the emissions and the characteristics of these emissions, no significant odor impacts will result from implementing the proposed project. G:IPlanning\2006IPA06-0213 Temecula Water Park CUPlPlanningllnitial Environmentai Study.doc 11 f. 4. BIOLOGICAL RESOURCES. Would the project? ~ - pot,entii3,lly SiWVf@~htl.Ji"l'.ElSS 'Mitigation "lrico'rDorated Less 1 nan '-;"MM -/ a. ....................... ..... I. IssuesandSu;;''''ortinnl': '.': I:',!ri;ni:l(;i'::':. Have a substantial adverse effect, either directly or through habitat modifications, on any species identified as a candidate, sensitive, or special status species in local or regional plans, policies, or regulations, or by the California Department of Fish and Game or U.S. Fish and Wildlife Service? Have a substantial adverse effect on any riparian habitat or other sensitive natural community identified in local or regional plans, policies, regulations or by the California Department of Fish and Game or US . Fish and Wildlife Service? Have a substantial adverse effect of federally protected wetlands as defined by Section 404 of the Clean Water Act (including, but not limited to, marsh, vernal pool, coastal, etc.) through direct removal, flllinn, hvdrolonical interruDtion, or other means? Interfere substantially with the movement of any native resident or migratory fish or wildlife species or with established native resident or migratory wildlife corridors, or impede the use of native wildlife nursery sites? Conflict with any local policies or ordinances protecting biological resources, such as a tree oreservation Dolicv or ordinance? Conflict with the provisions of an adopted Habitat Conservation Plan, Natural Community Conservation Plan, or other approved local, regional, or state habitat conservation nlan? -/ b. -/ c. -/ d. -/ e. -/ Background: Riverside County adopted the Western Riverside County Multi-Species Habitat Conservation Plan (MSHCP) on June 17, 2003. The US Fish and Wildlife Service (USFWS) Biological Opinion in favor of adopting the MSHCP was released on June 22, 2004. The City of Temecula is a signatory to the MSHCP, and therefore, the project is required to comply with the MSHCP. Section 6.0 of the MSHCP identifies the local implementation measures. Section 6.1.6 details the County and Cities Obligations and corresponds with Section 13.2 of the Biological Opinion issued by the USFWS. The program requires the City to undertake the following steps to insure compliance with the requirernents of the MSHCP. . Payment of local development mitigation fees and other relevant fees (Section 8.5) . Comply with the Habitat Assessment program (HANS) processor equivalent process to satisfy local acquisition obligation . Comply with the survey requirernents (Section 6.3.2) . Comply with the policies of the Riparian/Riverine Areas and Vernal Pools (Section 6.1.2) . Comply with the policies of the Protection of Narrow Endemic Plant Species (Section 6.1.3) . Comply with the policies of the UrbanIWildlands Interface (Section 6.1.4) . Comply with the Best Management Practices (Section 7.0; Appendix C) G:\Planning\2006IPA06-0213 Temecula Water Park CUPIPlanningllnitial Environmental Study.doc 12 The project site is in the Southwest Area Plan of the MSHCP. The project site is not within a Criteria Cell of the MSHCP and no HANS review is required. The closest Criteria Cell (6783) of the MSHCP is approxirnately .3 mile to the south and will not be affected by project activities. The MSHCP does not have any habitat assessment requirements for the project site, so no additional wildlife or plant surveys are necessary. A review of the property and its relation to the conservation goals of the MSHCP concluded that no portions of the property fall within any land that is required for long-term conservation within the area. Comments: 4.a. Less Than Significant Impact: Proposed development within Criteria Cells and Cell Groups is subject to review under the HANS process. Project applicants whose site falls within Criteria Areas are required to file a HANS application, which includes a habitat assessment of their project site to determine if all or part of the property is necessary for inclusion in any MSHCP conservation areas. If it is determined by the Western Riverside County Regional Conservation Authority (RCA), the County, Cities, or various State and Federal Agencies that all or part of the property is needed for inclusion in the MSHCP Conservation Area, the property owner will enter in negotiations with such agencies to determine the extent of development allowed within the project area that will not significantly impact the function of the conservation areas in question. The project site does not occur within a Criteria Cell of the MSHCP and no HANS review is required. The project site has been previously grubbed and disturbed for many years to comply with the City's weed abatement ordinance (Ord. 8.16). There are some grasses on the project site; however they are not considered sensitive habitat, nor is the site part bf a wildlife corridor. Less than significant impact is anticipated from the proposed project. 4.b. No Impact: Section 6.1.2 of the Western Riverside County MSHCP requires an assessment of the potentially significant effects of a project on covered species occupying riparian/riverine areas and vernal pools. The project biologist (Michael Brandman and Associates) conducted a riparian/riverine and vernal pool habitat assessment of the project site. There are no jurisdictional drainage features or riparian/riverine habitat occurs on the project site. No blue-line streams are mapped on the Temecula USGS topographic map. Therefore, there will be no significant impact. 4.c. No Impact No depressions or areas where water would pool were observed on the site. No vernal pools occur on the project site. Further, there are no ponded areas or depression onsite that could support fairy shrirnp habitat. No impact is expected. 4.d. No Impact: The development of the site will not interfere with the movement of any native resident or migratory fish or species or within the wildlife corridors because this project has not been identified as a linkage, block, or core in the MSHCP. No significant impacts are proposed for this site. 4.e. Less Than Significant Impact There. are ornamental trees in the western edge of the property, which is partially developed as an overflow parking lot from the adjacent lot. Species include: Eucalyptus species, pine species, and the Peruvian pepper tree. These trees are not identified either by the MSHCP or the City as species that need to be preserved; therefore less than significant impact is proposed. 4.f. No Impact The burrowing owl is a California state species of concern. Due to lack of adequate inforrnation for known recorded surveys for the Burrowing Owl, the MSHCP has assigned specific conservation objectives, including a required habitat assessment for this species. This project is not within a Criteria Cell of the MSHCP and no HANS Review is required. The MSHCP does not have any habitat assessment requirements for the project site, so no additional wildlife or plants surveys are necessary. No significant impacts are expected. G:\Planning\2006\PA06-0213 Temecula Water Park CUP\Planning\lnitial Environmental Study,doc 13 5. CULTURAL RESOURCES. Would the project: e9:t~nti<3:lIy, SignitiG~rir!lrile'S$ Mitigtitipt) Jni::d(brated a. Cause a substantial adverse change in the significance of a historical resource as defined in Section 15064.5? Cause a substantial adverse change in the significance of an archaeolo ical resource ursuant to Section 15064.5? Directly or indirectly destroy a unique paleontological resource or site or uni ue eolo ic feature? Disturb any human remains, including those interred outside of formal cemeteries? ./ b. c. ./ d. ./ Comments: 5.a-d. Less Than Significant Impact: The City of Temecula General Plan identifies the project site as a potential for sensitive archaeological resource area and area of high paleontological sensitivity (Figure 5-6 and 5-7, respectively). The San Diego Natural History Museum indicated in a letter dated August 2,2006 that the existing site conditions make paleontological mitigation unnecessary. The majority of the site is underlain by unfossiliferous, undocumented fill materials. The project site consists of land that has been previously disturbed as a result of previous maintenance activities, and other hurnan-related disturbances. Cultural resources of either prehistoric or historical origin were not observed within the site boundaries. Due to the potential for such resources to occur on the property, the following conditions will be implemented: If any cultural resources are exposed during initial grading and ground disturbance activities the City will be contacted, and a qualified archaeologist will evaluate the resources. If discovered resources merit long-term consideration, adequate funding will be provided to collect, curate and report these resources in accordance with standard archaeological management requirements. The Pechanga Band of Luiseiio Indians shall be contacted to develop a management plan for any resources that may be unearthed, to afford the Band an opportunity to monitor ground-disturbing activities and to participate in the decisions regarding collection and curation of any such resources. If any human remains are encountered during initial grading activities, all ground disturbing activities in the vicinity of the discovery will be terminated immediately and the County Coroner's office will be contacted to manage such remains. 6. GEOLOGY AND SOILS. Would the project: a. Expose people or structures to potential substantial adverse effects, including the risk of loss, injury, or death involvin : i. Rupture of a known earthquake fault, as delineated on the most recent Alquist-Priolo Earthquake Fault Zoning Map issued by the State Geologist for the area or based on other substantial evidence of a known fault? Refer to Division of Mines and Geolo S ecial Publication 42. ii. Stron seismic round shakin ? iii. Seismic-related round failure, includin Ii uefaction? ./ ./ ./ G:\Planning\2006\PA06-0213 Temecula Water Park CUP\PJanning\lnitial Environmental Study.doc 14 iv. Landslides? v'" b. Result in substantial soil erosion or the loss of topsoil? v'" c. Be located on a geologic unit or soil that is unstable, or v'" that would become unstable as a result of the project, and potentially result in on- or off-site landslide, iateral spreadinQ, subsidence, liquefaction or collapse? d. Be located on expansive soil, as defined in Table 18-1-B v'" of the Uniform Building Code (1994), creating substantial risks to life or DroDertv? e. Have soils incapable of adequately supporting the use v'" of septic tanks or alternative wastewater disposal systems where sewers are not available for the disposal of wastewater? Comments: 6.a.i. Less Than Significant Impact: According to the City's General Plan EIR, the site is not located within an Earthquake Fault Hazard Zone. Additionally, the site is not located within the Riverside County Earthquake Fault Zone. The site could, however, be subjected to significant shaking in the event of a major earthquake on the San Jacinto fault or other nearby regional faults. As a standard condition of approval, the applicant is required to build the structures in accordance with the current UBC seismic codes and local ordinances. Less than significant irnpacts are anticipated. 6a.ii-iii. Less Than Significant Impact The principal seisrnic considerations for most structures in southern California are surface rupturing of fault traces and damage caused by ground shaking or seismically induced ground settlement. The possibility of damage due to ground rupture is considered low since active faults are not known to cross the site. Lurching due to ground shaking from distant seismic events in not considered a significant hazard. The project will be required to comply with all building code requirements per the State Building Code to help mitigate the risk of damage during strong seismic ground shaking. Less then significant impacts are anticipated. Portions of the subsurface soils are potentially susceptible to liquefaction. Given the relative thickness of the potential liquefiable soils compared to the thickness of the overlying nonliquefiable soil, surface manifestations resulting from soil liquefaction are not likely. Less than significant impacts are anticipated. 6.a.iv. Less Than Significant Impact: There is a low potential for earthquake induced landslides or rockfalls on the project site because the site and its surroundings are essentially flat. As a result, no irnpacts will occur or mitigation is required for landslides or rock falls and there will be less than a significant impact. 6.b. Less Than Significant Impact: The development of the project site will expose it to potential erosion and downstream sedirnentation. The General Plan requires mitigation for projects to control erosion. Further, the state-wide NPDES program requires every project with ground disturbance greater than five acres to implement a Storm Water Pollution Prevention Plan (SWPPP) during project construction and operation. Best Management Practices (BMPs) are identified in the SWPPP to control erosion on a site and any sedimentation generated by disturbing the site for development with conformance to the NPDES program, less than significant impacts are expected. 6.c-d. Less Than Significant Impact: The project is not located on a geologic unit or soil that is unstable, or that would become unstable as a result of this project, and potentially result in on or off-site grading landslide, lateral spreading, subsidence, liquefaction, or collapse. The applicant will be required to prepare soils reports prior to issuance of a grading permit. Less than significant impacts are expected. 6.e. No Impact: The project site will be served by a sewer collection system owned by Eastern Municipal Water District. No impact is expected. G:IPlanning\2006\PA06-0213 Temecula Water Park CUPIPlanningllnitial Environmentai Study.doc 15 7. HAZARDS AND HAZARDOUS MATERIALS. Would the project: - . , "p()t~rllja,lIy, 1< ___:_ ~i9rlifj~ntLJf1less I> tylit,i!,j<:itiqn ..~,. .co:', IncoroCirated,lmpach-'" "' a. --..1.."., onrl: Create a significant hazard to the public or the environment through the routine transportation, use, or disposal of hazardous materials? Create a significant hazard to the public or the environment through reasonably foreseeable upset and accident conditions involving the release of hazardous materials into the environment? Emit hazardous emissions or handle hazardous or acutely hazardous materials, substances, or acutely hazardous materials, substances, or waste within one-quarter miie of an existing or proposed school? Be located on a site which is included on a list of hazardous materials sites compiled pursuant to Government Code Section 65962.5 and, as a result, would it create a significant hazard to the public or the environment? For a project located within an airport land use plan or, where such a plan has not been adopted, within two miies of a public airport or public use airport, would the project result in a safety hazard for people residino or worklna in the oroiect area? For a project within the vicinity of a private airstrip, would the project result in a safety hazard for people residinq or workinq in the project area? Impair implementation of or physically interfere with an adopted emergency response plan or emergency evacuation plan? Expose people or structures to a significant risk or loss, injury or death involving wildland fires, including where wildlands are adjacent to urbanized areas or where residences are intermixed with wildlands? - b. "' c. "' d. "' e. "' f. "' g. "' h. "' Comments: 7.a. Less Thai! Significant Impact The proposed project will use the existing Ynez Road as the ingress and egress point. The project does propose the use of chlorine and muratic acid and will store these liquids in above ground double contained containers on site. However, chemicals stored, used, and handled at facilities are required to ensure that proper types of fire and life safety protection systems and procedures are in place. The applicant has submitted a chemical classification packet to the City as required by the California Fire Code and California Building Code for compliance with these requirements. The Fire Department has found that the access storage and leak protection plan is acceptable. Therefore, there will be no significant hazard to the public or the environment from the routine transportation, use, or disposal of hazardous materials. Less than significant impacts are anticipated as a result from this project. 7.b. Less Than Significant Impact: It is not anticipated that the project would create a significant hazard to the public or the environment through reasonably foreseeable upset and accident conditions involving the release of hazardous rnaterials into the environment. Therefore, less than significant impacts are anticipated as a result of this project. G:\Planning\2006\PA06-0213 Temecula Water Park CUP\Planning\lnitial Environmental Study.doc 16 7.c. No Impact: No schools are located within one quarter mile of the site. The proposed construction on the property does not include any activities or uses that would pose a potential health hazard to the local population or the nearby school. Therefore, no impacts are anticipated. 7.d. No Impact: Review of available data (site appearance, USGS map, California Department of Toxic Substance Control's (DTSC) Hazardous Waste and Substances Site List (Cortese List), the Leaking Underground Storage Tank Information System (LUSTIS) and the US Environmental Protection Agency (EPA) indicates no past uses that may have involved hazardous materials. Based upon the available data and the historical land use, there is no evidence to support that hazardous wastes would be present on the site. No impacts are anticipated. 7.e-f. No Impact: The project site is not located within an airport land use plan or within two miles of a public or private airstrip according to Figure 5.9-4 in the Land Use Element of the General Plan. No impact upon airport uses will result from this proposal. 7.g. No Impact: The proposed project is not located in an area and is not a portion of an emergency response or evacuation plan and will be designed to allow for adequate emergency vehicle access to the site. Therefore, the project would not impair the implementation of or physically interfere with an adopted emergency response plan or emergency evacuation plan. No impact is anticipated as a result of the proposed project. 7.h. No Impact: The proposed project is not located in or near a wildland area that would be subject to fire hazards. The location of the proposed project would not expose people or structures to a significant risk or loss, injury or death involving wildland fires. No impact is anticipated as a result of this project. G:IPlanning\2006IPA06-0213 Temecula Water Park CUPIPlanningllnitial Environmental Study.doc 17 8. HYDROLOGY AND WATER QUALITY. Would the project: a. !> > IssUes and $UDDortino ,> ..... ..>: .,)n6a"': Violate any water quality standards or waste discharge requirements or otherwise substantially degrade water aualitv? . Substantially deplete groundwater supplies or interfere substantially with groundwater recharge such that there would be a net deficit in aquifer volume or a lowering of the local groundwater table level (e.g., the production rate of pre-existing nearby wells would drop to a level which would not support existing land uses or planned uses for which permits have been Qrantedl? Substantially alter the existing drainage pattern of the site or area, including through the alteration of the course of a stream or river, in a manner which would result insubstantial erosion or siltation on or off-site? Substantially alter. the existing drainage pattern of the site or area, including through the alteration of the course of a stream or river, or substantially increase the rate or amount of surface runoff in a manner which would result in floodina on- or off-site? Create or contribute runoff water which would exceed the capacity of existing or planned storm water drainage systems or provide substantial additional sources of polluted runoff? Require the preparation of a Water Quality Management Plan? Place housing within a 1 DO-year flood hazard area as mapped on a fed~ral Flood Hazard Boundary 'or Flood I. Insurance Rate Map or other flood hazard delineation map? Place within a 1 DO-year flood hazard area structures which would impede or redirect flood flows? Expose people or structures to a significant risk of loss, injury or death involving flooding, including flooding as a result of the failure of a levee or dam? Inundation bv seiche, tsunami, or mudflow? b. c. d. e. I. g. h. i. i. Comment: potElntiaUy ~...... SigriificalltUriless: Mitig'a,tlqo>_:- IhcorbOrated ,. /)nDact t -/ -/ -/ -/ -/ -/ -/ -/ -/ . -/ 8.a. Less Than Significant Impact The project proposes a 13,000 square foot water park. This type of development typically generates domestic and/or municipal wastewater that does not require pretreatment or waste discharge requirements. No water quality standards are forecast to be violated by implementing the proposed project which will deliver its wastewater flows to the regional wastewater plant. Wastewater will be delivered to the regional treatment plant for treatment under waste discharge requirements established by the San Diego Regional Water Quality Control Board. During construction and occupancy, Best Management Practices (BMPs) will be implemented which will control storrn water runoff pollution to a level of no significance, therefore less than significant impacts are anticipated. G:IPlanning\2006\PA06-0213 Temecuia Water Park CUPIPlanningllnitial Environmental Study.doc 18 8.b. Less Than Significant Impact Groundwater related problems are not expected to be encountered during site development. If shallow perched groundwater is encountered during construction, it can be managed with the use of sump pumps placed in the bottom of excavations which will be incorporated. The proposed project does not include any extraction of groundwater, so no adverse direct impact can result from implementing the proposed project. The GPEIR addresses water demand from development in the City of Temecula. The GPEIR concludes that cumulative water demand within the City can be met by the City's two purveyors without having a significant adverse irnpact on the environment, including depletion of the areas groundwater supplies. This is verified by the Rancho California Water District's Urban Water Master Plan which defines the resources available to the District to meet future cumulative demand within its service area. The proposed development is consistent with the General Plan designation for the property and thus, is considered consistent with the GPEIR. Therefore, the proposed project will not contribute to a significant cumulative, indirect adverse impact on the area groundwater aquifers. In addition, some water will be used for dust control during the grading process. The property owner has indicated that recycled water will be used for construction purposes if available. Less than significant impacts are anticipated. 8.c. Less Than Significant Impact: Through the implementation of the project SWPPP, erosion and siltation issues are controlled to a less than significant impact level and this project will not result in substantial erosion or siltation on or off-site. Less than significant irnpacts are anticipated. B.d-f. Less Than Significant Impact: The proposed project would increase runoff as a result of increasing the impervious surface on the project site. The City imposes standard mitigation to detain surface runoff on the property to ensure that the maximum runoff volume from the site is not significantly increased. The project will not violate any water quality standards or waste discharge requirements established by the State.of California. However, the project is required to prepare a Water Quality Management Plan (WQMP) pursuant to the MLJnicipal Separate Storm-Sewer permit (MS4 permit) issued by the Regional Water Quality Control Board. A preliminary plan has been subrnitted and the project will comply with RWQCB standards as designed. Based upon the information presented above, no significant adverse impact to either downstream flows or water quality is forecast to affect properties downstream of the site from developing the project as proposed. Less than significant impacts are proposed. . 8.g-h. Less Than Significant Impact: No buildings or structures will be located within the 1 OO-year floodplain according to the City's General Plan as a result of implernenting this project. No significant flood hazards are expected to occur from developing.the project site as proposed. No significant flood hazards are expected to occur from developing the project site as proposed. Less that significant impacts are proposed. 8.i. Less Than Significant Impact: The proposedproject would not expose people or structures to a significant risk of loss, injury, or death involving flooding, including flooding as a result of the failure of a levee or dam. The subject property is not located within a dam inundation area per the City's General Plan. In addition, the City has implemented a multi-hazard functional plan pursuant to the California Emergency Services.Act. The proposed project does not contain critical or essential facilities. Less than significant impacts are proposed. 8.j. No Impact: Due to the project area's distance from the ocean and elevation, there is no potential for a tsunami. The project area is not located near a large surface water body and there is no potential for inundation by seiche or mudflow. No impacts are anticipated. G:IPlanning\2006IPA06-0213 Temecula Water Park CUPIPlanningllnitial Environmental Study.doc 19 9. LAND USE AND PLANNING. Would the project: P(jteritj~Jly $i9r1ific,al1t:LJIJIEl~s Mitigfdipn [heC'orated a. b. Ph sicall divide an established communit ? Conflict with any applicable land use plan, policy, or regulation of an agency with jurisdiction over the project (including, but not limited to the general plan, specific plan, local coastal program, or zoning ordinance) adopted for the purpose of avoiding or mill atin an environmental effect? Conflict with any applicable habitat conservation plan or natural communit conservation Ian? .(" .(" c. .(" Comments: 9.a.b. Less Than Significant Impact The project site will not divide the physical arrangernent of an established community. The project site is vacant and surrounded by existing service commercial, industrial, and office buildings. Just north of the property are a church and an industrial/office building. The Harveston Specific Plan is located further north ofthe site. This area of the SpeCific Plan is zoned Service Commercial and is vacant with no proposals currently submitted to the City. East of the project site, there are existing office and light industrial buildings located within the Industrial Park zoning designation. West of the property is the 1- 15 Freeway, and to the south of the property is an existing service commercial building. The proposed water park site is zoned Service Commercial (SC). The City of Temecula Development Code allows Sports and Recreational Facilities to be permitted in the SC zone with an approved Conditional Use Permit (Table 17.08.030). The project is consistent with the zoning standards of the City's General Plan and Development Code, the location of the project eliminate any possibility of physically dividing an established community. Impacts from all General Plan Land Use designations were analyzed in the Environmentallrnpact Report (EIR) for the General Plan. Agencies with jurisdiction within the City comments on the scope of the analysis contained with the EIR and how the land uses would impact their particular agency. Mitigation measures approved with the EIR have been applied to this project where necessary. Furthermore, all agencies with jurisdiction over the project are being given the opportunity to comment on the project, and it is anticipated that they will make the appropriate comments as to how the project relates to their specific environmental plans or policies. Less than significant impacts are anticipated from this project. 9.c. Less Than Significant Impact The project site is not within a Criteria Cell of the Western Riverside County MSHCP. The property does not fall within any MSHCP Consistency Habitat assessrnent area. No jurisdictional drainage features or riparian/riverine habitat occur inside the project site. No vernal pools or fairy shrimp habitat were observed on the project site. The project site is also located within the Riverside County HabitatConservation Plan for Stephen's kangaroo rat, and therefore, a mandatory per acreage development fee will be assessed for the project. Please refer to the Biological Section for a full discussion of this item and details of the mitigation measures required. Less than significant impacts are anticipated as a result from this project. G:IPlanning\2006IPA06-0213 Temecuia water Park CUPIPlanningllnitial Environmental Study.doc 20 10. MINERAL RESOURCES. Would the project: a. Result in the loss of availability of a known mineral resource that would be of value to the region and the residents of the state? b. Result in the loss of availability of a locally-important mineral resource recovery site delineated on a local general plan, specific Ian or other land use Ian? ./ ./ Comments: 10.a-b. No Impact According to the California Geological Survey, no known mineral resources exist in Temecula. Development pursuant to the General Plan will not result in the loss of a known mineral resource. No impact is anticipated as a result of the proposed project. 11. NOISE. Would the project result in: ./ b. Exposure of persons to or generation of noise levels in excess of standards established in the local general plan or noise ordinance, or applicable standards of other a encies? Exposure of persons to or generation of excessive roundborne vibration or roundborne noise levels? A substantial permanent increase in ambient noise levels in the project vicinity above levels existing without the ro'ect? A substantial temporary or periodic increase in ambient noise levels in the project vicinity above levels existing without the ro'ect? For a project located within an airport land use plan or, where such a plan has not been adopted, within two miles of a public airport or public use airport, would the project expose people residing or working in the project area to excessive noise levels? For a project within the vicinity of a private airstrip, would the project expose people residing or working in the roO ect area to excessive noise levels? ./ a. c. ./ d. ./ e. ./ f. ./ Comments: 11.a. Potentially Significant Unless Mitigation Incorporated: According to the Acoustical Analysis Report prepared by Michael Brandman Associates dated August 16, 2006, development of the project would require site preparation (I.e. land clearing, grading, excavation, and trenching) and construction of the buildings and infrastructure. These construction activities would generate noise that would be heard both on and off the project site. The proposed project is not forecast to generate severe noise levels over the long-term. The project will create some noise levels over that currently emanating from the vacant land. However, those G:IPlanning\2006IPA06.0213 Temecula Water Park CUPlPlanningllnitial Environmental Study.doc 21 noises are not anticipated to create a substantial permanent increase in ambient noise levels in the project vicinity above levels existing without the project. Since this project does not involve any pile driving or other severe noise generating activities, this project is not forecast to generate severe noise levels that would impact the nearby church, businesses, or residential noise receptors. In general, the trucks and earth-rni:JVing sources are noisiest with equipment noise ranging up to about 90 dBA at 50 feet from the source. Noise emissions tend to be more associated with periodic events under full load rather than continuous noise exposure. Spherically radiating point sources of noise emissions are atmospherically attenuated by a factor of 6 dB per doubling of distance, or about 20 dB in 500 feet of propagation. The loudest earth-moving noise sources will therefore sometimes be temporarily detectable above the local background beyond 1,000 feet from the noise source. An extensive noise impact envelope requires a clear line of sight from source to receiver. Any terrain, topography or structures between the source and receiver would lirnit line of sight. Construction noise impacts are therefore less than predicted under theoretical maximum input conditions. Construction noise sources are not strictly relatable to a noise standard because they occur only during selected times and the source strength varies sharply with time. The penalty associated with noise disturbance during quiet hours, and the nuisance factor accompanying such disturbance, usually leads to time limits on grading activity imposed as a condition on grading permits. The City of Temecula provides specific standards for preventing construction noise nuisance which will be incorporated as mitigation measures: The applicant shall establish a noise complaint response program and shall respond to any noise complaints received for this project by measuring noise levels at the affected receptor site. If the noise level exceeds an Ldn of 65 dBA exterior or an Ldn of 45 dBA interior at the receptor, the applicant will implement adequate measures (which may include portable sound attenuation walls, use of quieter equipment, shift of construction schedule to avoid the presence of sensitive receptors, etc.) to reduce noise levels to the greatest extent feasible. The applicant will require that all construction equipment be operated with mandated noise control equipment (mufflers or silencers). Enforcement will be accomplished by random field inspections by applicant personnel during construction activities. Compliance with the above standard conditions measures will ensure that construction noise irnpacts are controlled to a less than significant level. These measures are set as conditions on the project grading . permits. Compliance with these criteria will preclude creation of a significant temporary noise impact during construction. 11.b. Less Than Significant Impact This project does not include any construction activities that would generate excessive groundborne vibration or groundborne noise. No potential exists for significant groundborne noise/vibration impacts associated with the proposed project. Less than significant impacts are expected from this project. 11.c. Less Than Significant Impact: In reviewing project impacts, future noise levels will be compared with the City standards for commercial uses since these are the land uses in the project area. Project related impacts are minimal (all less than 1.0 dBA) as shown in the right hand colurnn of Table 3. All predicted noise levels are within the City's Noise Standards with the exception of Winchester Road between 1- 15 and Margarita Road. Noise levels along this roadway segment violate the City's Noise Standards for commercial land uses in the existing conditions and project generated impacts are extremely srnall (0.10 dBA) and is not considered a significant project impact. The greatest roadway noise impact generated by the project occurs on Ynez Road between County Center Drive and Winchester Road where the project increases the noise levels by 0.50 dBA with an estimated cumulative roadway noise level of 69.1 dBA CNEL. This section of roadway is bordered entirely by commercial land uses and is within the City's Noise Standard for commercial land uses. Predicted noise levels at noise sensitive land uses (residential) are all within the City's Noise Standards in the future with project condition and project impacts are extremely small (less than 0.01 dBA) in these locations. For these reasons, project generated roadway noise irnpacts are less than significant. G:IPlanning\2006IPA06-0213 Temecula Water Park CUPIPlanningllnltial Environmental Study.doc 22 Table 3 - Existing and Future Year 2007 Noise Impacts Winchester Rd.: West of 1-15 67.2 68.5 68.6 1.3 0.10 Winchester Rd.: 1-15 to Ynez Rd. 71.5 72.5 72.6 1.1 0.10 Winchester Rd.: Ynez Rd. to 70.4 71.3 71.4 0.9 0.10 Margarita Rd Ynez Rd.: North of Equity Dr. 51.0 58.5 58.5 7.5 >0.01 Ynez Rd.: County Center Dr. to 63.4 68.6 69.1 5.7 0.50 Winchester Rd. Ynez Rd.: South of Winchester 68.8 70.1 70.4 1.6 0.30 County Center Dr.: Ynez Rd. to 54.5 58.1 58.1 3.6 >0.01 Equity Dr. Equity Dr.: Ynez Rd. to County 44.8 55.6 55.6 10.8 >0.01 Center Dr. Source: MBA 2006 Measured at114 feet from roadway centerline on Winchester Rd. and Ynez Rd. Measured at 58 feet from roadway centerline on County Center Dr. and Equity Dr. Noise levels take into account noise walls aiong residential properties on Ynez Rd. north of Equity Dr. and Equity Dr. Noise levels at School site does not include noise walls. Onsite Noise Levels. In addition to roadway noise impacts, the analysis needs to address noise impacts to residential land used closest to the site related to the onsite activities. The primary sources of noise onsite include vehicles in the parking lot, pumps and compressors associated with the pools and water rides, and periodic enouncements on the public address system. Some noise sources such as the public address system will be periodic, while others such as pumps and compressors will be fairly constant throughout the day. Noise from children and adults visiting the park is expected, however the noise levels will be consistent with the City's General Plan noise dBA. The park will be surrounded by a seven foot tall fence which will be constructed of a block material on the north, south, and west sides. The east side will have partial block and partial tubular steel. G:lPlanning\2006IPA06-0213 Temecula Water Park CUPIPlanninglinitial Environmental Study.doc 23 Table 4 -Noise Impacts From Onsite Noise At the Site Boundaries Across the Street from Site At Nearest Residential Units to the Project Site 65.83 57.60 41.36 1 Source: MBA 2006 Note: Noise measured from center of each noise sourced. The noise study prepared for the project indicates that the proposed project will not have any significant impact to off-site noise levels along the project's adjacent roadways or other sensitive land uses in the area. There is a church adjacent to the property; however, their parking lot and drive aisle is located on the subject parcel away from the park activities. 11.d. Less Than Significant Impact With Mitigation: Temporary construction noise impacts vary because the noise strength of construction equipment ranges as a function of the equipment used and its activity level. Short-term construction noise impacts tend to occur in discreet phases dominated initially by earth-moving sources, then by foundation and parking area construction, and finally for finish construction. In general, earth-moving sources are noisiest with equiprnent nois~ ranging up to about 90 dBA at 50 feet from the source. Pile drivers, jack hammers and rock drills are also noisy, with the peak noise from a pile driver exceeding 100 dBA at 50 feet and jack hammers and rock drills exceeding 90 dBA. (For more specific information on construction equipment noise generation, please refer to the noise study in the technical appendices). Spherically radiating point sources of noise emissions are atmospherically attenuated by a factor of 6 dB per doubling of distance, or about 20 dB in 500 feet of propagation. The loudest earth-moving noise sources will therefore sometimes be temporarily detectable above the local background beyond 1,000 feet from the noise source. An extensive noise irnpact envelope requires a clear line of sight from source to receiver. Any terrain, topography or structures between the source and receiver would limit line of sight. Construction noise impacts are therefore less than predicted under theoretical rnaximurn input conditions. G:\Planning\2006IPA06-0213 Temecula Water Park CUPIPlanningllnitial Environmental Study.doc 24 Construction noise sources are not strictly relatable to a noise standard because they occur only during selected times and the source strength varies sharply with time. The penalty associated with noise disturbance during quiet hours, and the nuisance factor accompanying such disturbance, usually leads to time limits on grading activity imposed as a condition on grading permits. The following mitigation measures will be imposed on the project: The applicant shall require that construction activities be limited to no more than the hours of 7:00 a.m. to 7:00 p.m. Monday through Saturday. No construction can occur outside of these hours or on Sundays or holidays except in the event of emergency. The applicant shall establish a noise complaint response program and shall respond to any noise complaints received for this project by measuring noise levels at the affected receptor site. If the noise level exceeds an Ldn of 65 dBA exterior or an Ldn of 45 dBA interior at the receptor, the applicant will implement adequate measures (which may include portable sound attenuation walls, use of quieter equipment, shift of construction schedule to avoid the presence of sensitive receptors, etc.) to reduce noise levels to the greatest extent feasible. The applicant will require that all construction equipment be operated with mandated noise control equipment (mufflers or silencers). Enforcement will be accomplished by random field inspections by applicant personnel during construction activities. Compliance with the above time limits will ensure that construction noise impacts are controlled to a less than significant level. These time limits are set as conditions on the project grading perrnits. Compliance with these criteria will preclude creation of a significant temporary noise impact during construction; therefore less than significant impacts are expected from this project. . 11.e-f. No Impact: This project is not within two miles of a public airport or public or private use airport. According to Figure 5.10-4 of the French Valley Airport Future Noise Contours in the Noise Elernent of the General Plan, the project is not located in the noise irnpact area for the French Valley Airport. In addition, the project is not located in the French Valley Airport Land Use Compatibility Zone according to Figure 5.9-3 in the Land Use and Planning Element of the General Plan. Therefore, people within the project area will not be exposed to excessive noise levels generated by an. airport and less than significant impacts will result from this project. G:IPlanning\2006IPA06.0213 Temecula Water Park CUPIPlanningllnitial Environmental Study.doc 25 12. POPULATION AND HOUSING. Would the project: a. i ..' .... "",' Issues andSu<> ::>,......- Induce substantial population growth in an area, either directly (for example, by proposing new homes and businesses) or indirectly (for example, through extension of roads or other infrastructure)? Displace substantial numbers of existing housing, necessitating the construction of replacement housing elsewhere? Displace substantial numbers of people, necessitating the construction of replacement housinQ elsewhere? Pot~ntia,IIY $ignifiQantUn1es,S ',,' tV1jti~@iqn Hi'colPorated: ; impact v" b. v" c. v" Comments: 12.a. Less Than Significant Impact: The project will not induce substantial growth in the area either directly or indirectly. The proposed project is an arnusernent park that will attract people that live outside City limits, and may cause some people to relocate to (or near) Temecula to their place of employment (future ernployees of the water park), which is considered a moderate indirect affect. However, the project will not induce substantial growth beyond what is projected in the City's General Plan. Less than significant impacts are anticipated as a result of this project. 12.b-c. No Impact The project will riot displace substantial numbers of people or existing housing, as the site is vacant property zoned for service commercial development. Therefore, the project will not necessitate the construction of replacement housing due to displacement of housing or people. No impacts are anticipated as a result of this project. G:IPlanning\2006IPA06-0213 Temecula Water Park CUPIPlanningllnitial Environmental Study.doc 26 13. PUBLIC SERVICES. Would the project result in substantial adverse physical impacts associated with the provision of new or physically altered governmental facilities, need for new or physically altered governmental facilities, the construction of which could cause significant environmental impacts, in order to maintain acceptable service ratios, response times or other performance objectives for any of the public services: > >> ..... > > ,PQb3rlti~lIY ;>........ I> $igpi~ca,nJ-l.1111~s~ Issues and Suooortin .lmo,,8,.. MitigatiOn I 1< Ihc'OmCliated a. Fire Drotection? -/ b. Police protection? -/ c. Schools? -/ d. Parks? -/ e. Other public facilities? -/ Comments: 13.a,b,d,e. Less Than Significant Impact: The project will have a less than significant impact upon, or result in a need for new or altered fire, police, recreation or other public facilities. The development of the site will incrementally increase the need for these services. The water park will only be open during the summer months, which will greatly decrease the need for public services for the water park the rest of the year. In addition, the water park will have life guards on duty for safety. The project will also contribute its fair share through the City's Development Impact Fees to the maintenance or provision of services from these entities. Less than significant impacts are anticipated. 13.c. No Impact: The project itself is not creating a residential use and therefore will have no impact upon, or result in a need for new or altered school facilities. Development of the parcels within the project will not cause significant numbers of people to relocate within or to the City. The cumulative effect from the project will be mitigated through the payrnent of applicable school fees at the time the parcels are developed. No impacts are anticipated as a result of this project. 14. RECREATION. Would the project: Issues and b. Increase the use of existing neighborhood and regional parks or other recreational facilities such that substantial physical deterioration of the facility would occur or be accelerated? Include recreational facilities or require the construction or expansion of recreational facilities which might have an adverse physical effect on the environment? -/ a. -/ Comments: 14.a-b. Less Than Significant Impact: The project will have no impact on the demand for neighborhood, regional parks or other recreational facilities, or affect existing recreational opportunities. In addition, this project will have a positive impact on recreational services in the City as it will provide an outlet for young people who live in the community. Less than significant impacts are anticipated as a result of this project. G:IPlanning\2006IPA06-0213 Temecula Water Park CUPIPlanningllnitial Environmental Study.doc 27 15. TRANSPORTATIONrrRAFFIC. Would the project: a. Issuesand$u ortin Cause an increase in traffic which is substantial in relation to the existing traffic load and capacity of the street system (i.e., result in a substantial increase in either the number of vehicle trips, the volume to capacity ration on roads, or con estion at intersections? Exceed, either individually or cumulatively, a level of service standard established by the county congestion mana ement a enc for desi nated roads or hi hwa s? Result in a change in air traffic patterns, including either an increase in traffic levels or a change in location that results in substantial safet risks? Substantially increase hazards due to a design feature (e.g., sharp curves or dangerous intersections) or incom atible uses e. ., farm e ui ment? Result in inade uate emer enc access? Result in inade uate arkin ca acit ? Conflict with adopted policies, plans, or programs supporting alternative transportation (e.g., bus turnouts, bic cle racks? Polel1tially: -Sigilificarit.lJhl$$S Miti9Citi()O friCoi'orated "" b. "" c. "" d. "" e. f. g. "" "" "" Comments: 15.a-b. Potentially Significant Impact Unless Mitigation Incorporated: A Traffic Study was conducted by Kimley-Horn and Associates, Inc., dated September 2006. Under existing conditions, all intersections evaluated in the Traffic Study are functioning at LOS D or better during existing peak hour conditions except for the following intersections: Winchester Road at 1-15 NB Ramp (weekday evening peak hour), Winchester Road at Ynez Road (weekday evening at peak hour), Winchester Road at Promenade Mall East (weekday evening peak hour), Winchester Road at Margarita Road (weekday evening peak hour). With the addition of the project to the existing conditions, all intersections would continue to operate at LOS D or better except for those listed above that were already operating below acceptable levels per the City standards. The intersection of Ynez Road and County Center Drive warrants signalization under current conditions and is scheduled for signalization in the near future. City staff has directed that an annual ambient growth rate of 2% per year be applied to existing (2006) peak hour traffic volumes. Assuming the project is constructed and operational in 2007, all intersections would function at LOS D or better during peak hours with the exception of the intersections forecasted to operate at an unacceptable LOS without the project, and will continue to do so with the addition of project traffic. The project will contribute to intersections already operating at a deficient LOS, but will not cause any intersection to worsen to an unacceptable LOS, or to fall to a lower LOS. The over-capacity conditions along Winchester Road will be improved with the completion of the French Valley Parkway Interchange, which will result in a new interchange with the 1-15 Freeway one mile to the north. The construction of the French Valley Parkway Interchange project will result in substantial improvement of peak hour intersection traffic along Winchester to an acceptable LOS. The Winchester northbound ramp intersection and the WinchesterNnez intersection will continue to operate at a LOS "P' during the evening peak hour; the total average daily vehicle delay will be reduced by as much as 30-90 seconds per vehicle. With the French Valley Parkway Interchange in place, some traffic that currently uses the Winchester Road interchange will shift to the north, providing some relief. Likewise, it is expected that the portion of the G:IPlanning\2006IPA06-0213 Temecula Water Park CUPIPlanningllnitial Environmental Study.doc 28 Temecula Water Park traffic that was forecasted to approach the site from the north will also shift from the Winchester Interchange to the French Valley Parkway Interchange, which would further reduce any project contribution to congestion on Winchester Road. The proposed project developed as a water park generates average weekday entering vehicles of 630 over the course of the day, for a total of 1,260 trips. Average Saturday entering vehicles is 802 vehicles, for a total daily trip generation of 1,604 trips. The project site is currently zoned Service Commercial. The Service Commercial designation would allow many different types of development, including office and retail uses. Assuming the Target Floor Area Ration of .30, the 15.4 acre site could be developed with up to 201,247 square feet of commercial or office uses. An office use would bring 2,216 daily weekday trips/83 weekend trips and a department store could bring in 11,274 daily weekday trips/1,008 weekend trips per day. The proposed water park use would generate less traffic each day during the peak hours (additionally, the water park does not open until 10:00 a.m.) than most other uses, since any other type of developrnent would typically be open 5 to 7 days a week, 52 weeks a year. The proposed water park is anticipated to generate significantly less traffic on an annual basis than any other allowed use. Over the long-term, the proposed project will contribute to LOS F traffic flows at the locations identified above, even after above mentioned improvements are implemented. However, this project will not significantly worsen the traffic flow after implementation of mitigation. In addition, the project is required to pay fair share to circulation system components that are impacted by cumulative traffic growth in the Temecula region. Based on the identified project specific and cumulative impacts of the proposed project, the City concludes that potential project specific and cumulative effects of the project are effectively mitigated to a less than significant impact level based on the mitigation measures identified below, including payment of fair share fees for circulation system impacts that result from cumulative traffic growth. With implementation of the above condition of approval, the project's specific and cumulative circulation system impacts will be offset or mitigated to a less than significant level of impact. 15.c. No Impact: The project site is located approximately seven miles from the nearest airport, French Valley, and therefore project implementation has no potential to adversely impact any air traffic patterns. No railroads occur adjacent to or in the irnrnediate vicinity of the project site. No irnpact can be identified, and no mitigation is required. 15.d. Less Than Significant Impact: The proposed circulation system improvements associated with the project will be installed in conformance with the City's circulation system requirements. The Traffic Study recommends implementation of the following conditions relative to the new circulation system components. Complete the internal circulation system per the City of Temecula standards. Sight distance at the project accesses shall be reviewed with respect to standard City of Temecula sight distance standards and constructed in conformance with these standards. Traffic signing/striping shall be defined at the time detailed construction plans are completed and implemented prior to occupancy. Stop signs, stop bars and stop legends shall be provided at the project access points. Implementation of these measures will ensure that no residual traffic hazards result from the construction of the roadways in conjunction with the proposed project. Therefore, less than significant impacts are projected. 15.e. No Impact: A review of the site plan design indicates that emergency access is provided by one ingress and one egress outlet from Ynez Road. The Fire Department and the Department of Public Works has reviewed the project and has determined that there is adequate internal emergency vehicle access. The G:IPlanning\2006IPA06-0213 Temecula Water Park CUPIPlanningllnitial Environmental Study.doc 29 proposed development will have no effect on emergency access to adjacent parcels after development. No impacts are anticipated. 15.f. No Impact: The project is consistent with the parking requirements of the City's Development Code. The project proposes 433 parking spaces. The Development Code requires 393 parking spaces. No adverse parking capacity impacts are forecast to occur. No impact is anticipated as a result of this project. 15.g. No Impact: The City of Temecula mass transit is provided by the Riverside Transit Authority (RTA). The project will be required to be designed consistent with adopted policies, plans, or programs supporting this alternative transportation. No conflict or adverse impact to adopted alternative transportation policies, plans or programs is forecast to occur from implementing the proposed project. No impact is anticipated as a result of this project. g. 16. UTILITIES AND SERVICE SYSTEMS. Would the project: gciI~n~~lIy :$JgrJ(fjc~~,t:qril~ss Mitlga.tiqn . Ihco....orated v' a. Exceed wastewater treatment requirements of the a licable Re ional Water Qualit Control Board? Require or result in the construction of new water or wastewater treatment facilities or expansion of existing facilities, the construction of which could cause si nificant environmental effects? Require or result in the construction of new storm water drainage facilities or expansion of existing facilities, the construction of which could cause significant environmental effects? Have sufficient water supplies available to serve the project from existing entitlements and resources, or are new or ex anded entitlements needed? Result in a determination by the wastewater treatment provider which serves or may serve the project that it has adequate capacity to serve the project's projected demand in addition to the provider's existing commitments? Be served by a landfill with sufficient permitted capacity to accommodate the project's solid waste disposal needs? Comply with federal, state, and local statutes and re ulations related to solid waste? v' b. v' c. v' d. v' e. v' f. v' Comments: 16.a. Less Than Significant Impact: The proposed project will deliver wastewater to the Eastern Municipal Water District (EMWD) wastewater treatment plant in Temecula. EMWD is in the process of improving sewer capacity to be able to convey the expected peak flows at full development of the areas it services. Through the payment of annexation fees, sewer connection fees, developrnent impact fees (for water facilities), the impact of implementing the proposed project on sewage systems is forecast to be less than significant. 16.b. Less Than Significant Impact: Through the payment of water district fees, sewer connection fees, development impact fees (for water facilities) and meter installation fees, the impact of implementing the proposed project on sewage systems is forecast to be less than significant. Adequate capacity exists in each G:IPlanning\2006IPA06-0213 Temecula Water Park CUPIPlanningllnitial Environmental Study.doc 30 system for this project to be implemented without causing significant adverse impacts to these systems. Less than significant impact is expected as a result from this project. 16.c. Less Than Significant Impact: The proposed project would increase runoff as a result of increasing the impervious surface on the project site. The City imposes standard mitigation to detain surface runoff on the property to ensure that the maximum runoff volume from the site is not significantly increased. Based upon the information presented above, the project will not result in the need for construction of new storm water drainage facilities other than those discussed above and analyzed as part of the project. Less than significant impact is expected from this project. 16.d. Less Than Significant Impact: Adequate water supplies have been identified by the Rancho California Water District to meet the current and immediate future demands in its service area, including the proposed project. Therefore, a less than significant irnpact is expected. 16.e. Less Than Significant Impact: Adequate wastewater treatment capacity has been identified by the EMWD to meet the current and immediate future demands in its service area, including the proposed project. Therefore, less than a significant impact is expected. 16.f. No Impact: According to the General Plan and the County Solid Waste Management Plan adequate landfill disposal capacity exists within the regional landfills to meet current and future demands. Solid waste mitigation measures identified in the General Plan EIR (Measures 2 and 3) must be implemented by all projects in the City to meetthe City's source reduction requirements. No impact is expected. 16.g. Less Than Significant Impact: By participating in the City's source reduction and recycling element, the proposed project will comply with all statutes and regulations for management of solid waste. The proposed commercial and residential project does not pose any significant or unique management requirements. Therefore, less than significant impact is expected as a result from this project. , G:IPlanning\2006IPA06-0213 Temecula Water Park CUPIPlanningllnitial Environmental Study.doc 31 17. MANDATORY FINDINGS OF SIGNIFICANCE. Would the project: a. b. c. Issiles e()t~rtj~lly; $,ignifiqaqtlJIl1esf> Mitig'ati6;h IhCo(6fated Does the project have the potential to degrade the quality of the environment, substantially reduce the habitat of a fish or wildlife species, cause a fish or wildlife population to drop below self-sustaining levels, threaten to eliminate a plant or animal community, reduce the number or restrict the range of a rare or endangered plant or animal or eliminate important examples of the major periods of California history or rehistor ? Does the project have impacts that are individually limited, but cumulatively considerable? ("Cumulatively considerable" means that the incremental effects of a project are considerable when viewed in connection with the effects of past projects, the effects of other current projects, and the effects of probable future ro'ects ? Does the project have environmental effects which will cause substantial adverse effects on human beings, either directl or indirectl ? -/ -/ Comments: 17.a-c. Less Than Significant Impact: The proposed project is the construction and development of a 13,000 square foot water park on 15 acres. The project will be accessed via a one way entrance and a one way exit off of Ynez Road. This project will provide a commercial recreational outlet for the City of Temecula if it is approved for development. A water park use is allowed by Conditional Use Permit approval in the Service Commercial land use designation if approved by the City. Potential impacts include short-term construction effects and the long-term effects that result from converting a property from its existing disturbed, pastoral setting to a commercial recreational use. Most of the potential adverse irnpacts are either not significant without mitigation or they can be controlled to a less than significant impact with identified mitigation measures. Several potential impacts (air quality, transportation/circulation) require extensive mitigation, including modification of the construction schedule, to ensure that impacts are controlled to a less than significant level. Traffic impacts are limited, but when combined with the effects of past projects approved in the immediate area, the cumulative result is considerable. The applicant will be required to pay standard mitigation fees that will be used to help ease the traffic impacts in the City. With the identified mitigation required to be implemented, the proposed project is not forecast to cause any significant adverse environmental impacts to any of the environmental resource issues addressed in this Initial Study. The City of Temecula proposes to issue a Mitigated Negative Declaration with mitigation as the appropriate environmental deterrnination for this project to comply with the California Environmental Quality Act. The City will issue a Notice of Intent to Adopt a Mitigated Negative Declaration and distribute this document for public review. Assuming potential project impacts remain less than significant after receipt of comments and development of responses, the City will consider adopting the Mitigated Negative Declaration prior to issuance of any of the entitlements for this project to be developed on the project site. G:IPlanning\2006IPA06-0213 Temecula Water Park CUPIPlanningllnitial Environmental Study.doc 32 18. EARLIER ANALYSES. Earlier analyses may be used where, pursuant to the tiering program EIR, or other CEQA process, one or more effects have been adequately analyzed in an earlier EIR or negative declaration. Section 15063(c)(3)(D). In this case a discussion should identify the following on attached sheets. a. Earlier analvses used. Identifv earlier analvses and state where thev are available for review. b. Impacts adequately addressed. Identify which affects from the above checklist were within the scope of and adequately analyzed in an earlier document pursuant to applicable legal standards, and state whether such effects were addressed bv mitioation measures based on the earlier analvsis. c. Mitigation measures. For effects that are "Less than Significant with Mitigation Incorporated," describe the mitigation measures which were incorporated or refined from the earlier document and the extent to which they address site-specific conditions for the proiect. 18.a. There were no earlier analyses used in preparing this Initial Study. 18.b. There were no impacts that were previously addressed by rnitigation measures based on an earlier analysis. 18.c. See attached Mitigation Monitoring Program. SOURCES 1. City of Temecula General Plan (April 12, 2005) 2. City of Temecula General Plan Final Environmental Impact Report (April 12, 2005) 3. Acoustical Analysis Report prepared by Michael Brandman Associates on August 17, 2006 4. Air Quality Impact Analysis Report prepared by Michael Brandman Associates on August 21, 2006 5. Traffic Impact Study prepared by Kimley-Horn and Associates, Inc. dated September 2006 6. MSHCPConsistency Analysis prepared by Michael Brandman Associates on August 15, 2006 7. San Diego Natural History Museum letter dated August 2,2006 G:IPlanning\2006IPA06-0213 Temecuia Water Park CUPIPlanningllnilial Environmental Study.doc 33 MITIGATION MONITORING PROGRAM (3:IPlanning\2006IPA06-0213 Temecuia Water Park CUPIPlanningllnitlal Environmental Study.doc 34 AIR QUALITY General Impact: Mitigation Measures: Mitigation Monitoring Program Temecula Water Park Planning Application No. PA06-0213 The proposed project could potentially expose sensitive receptors to substantial pollutant concentration and could potentially create objectionable odors affecting a substantial number of people working in the nearby area. Prior to construction of the proposed improvements, the project proponent will provide a traffic control plan that will describe safe detours around the project construction site and provide temporary traffic control (I.e., flag person) during construction related truck hauling activities. During construction of the proposed improvements, construction equipment will be properly maintained at an offsite location and includes proper tuning and timing of engines. Equipment maintenance records and equipment design specification data sheets shall be kept onsite during construction. During construction of the proposed improvements, all contractors will be advised not to idle construction equipment on site for more than 10 minutes. During construction of the proposed improvements, the project applicant will provide on-site meals to construction workers by arranging a lunch wagon to visit the construction site during work breaks including the lunch break. Prior to construction of the proposed improvements, the project proponent will provide a Dust Control Plan that will describe the application of standard best managernent practices to control dust during construction. Best management practices will include: . Application of water on disturbed soils and unpaved roadways a minimum of three times per day . Using track-out prevention devices at construction site access points . Stabilizing construction area exit points . Covering haul vehicles . Restricting vehicle speeds on unpaved roads to 15 miles per hour (mph) G:IPlanning\2006\PA06-0213 Temecula Water Park CUPIPlanninglMitigation Monitoring Program.doc1 . Replanting disturbed areas as soon as practical and other measures, as deemed appropriate to the site, to control fugitive dust Specific Process: Planning staff will verify compliance with the above mitigation measure as part of the grading plan check review process. Mitigation Milestone: Prior to the issuance of a grading permit. Responsible Monitoring Party: Planning Department CULTURAL RESOURCES General Impact: Directly or indirectly destroying any unique paleontological or archaeological resources. Mitigation Measure: If any cultural resources are exposed during initial grading and ground disturbance activities the City will be contacted, and a qualified archaeologist will evaluate the resources. If discovered resources merit long-term consideration, adequate funding will be provided to collect, curate and report these resources in accordance with standard archaeological management requirements. The Pechanga Band of Luisefio Indians shall be contacted to develop a management plan for any resources that may be unearthed, to afford the Band an opportunity to monitor ground-disturbing activities and to participate in the decisions regarding collection and curation of any such resources. If any human remains are encountered during initial grading activities, all ground disturbing activities in the vicinity of the discovery will be terminated immediately and the County Coroner's office will be contacted to manage such remains. Specific Process: Planning staff will verify compliance with the above mitigation measure as part of the grading plan check review process. Mitigation Milestone: Prior to issuance of a grading permit. Responsible Monitoring Party: Planning and Public Works Departments NOISE General Impact: Noise levels could potentially exceed the City's General Plan requirement G:IPlanning\2006IPA06-0213 Temecula Water Park CUPIPlanninglMitigation Monitoring Program.doc2 Mitigation Measures: Specific Processes: Mitigation Milestone: Responsible Monitoring Party: TRAFFIC General Impact: Mitigation Measures: Specific Processes: Mitigation Milestone: Responsible Monitoring Party: The applicant shall establish a noise complaint response program and shall respond to any noise complaints received for this project by measuring noise levels at the affected receptor site. If the noise level exceeds an Ldn of 65 dBA exterior or an Ldn of 45 dBA interior at the receptor, the applicant will implernent adequate measures (which may include portable sound attenuation walls, use of quieter equipment, shift of construction schedule to avoid the presence of sensitive receptors, etc.) to reduce noise levels to the greatest extent feasible. The applicant will require that all construction equipment be operated with mandated noise control equipment (mufflers or silencers). Enforcement will be accomplished by random field inspections by applicant personnel during construction activities. Planning staff will verify compliance with the above mitigation measure as part of the grading plan check review process. Prior to the issuance of a grading permit Planning Department The proposed project could potentially increase traffic levels Complete the internal circulation system per the City of Temecula standards. Sight distance at the project accesses shall be reviewed with respect to standard City of Temecula sight distance standards and constructed in conforrnance with these standards. Traffic signing/striping shall be defined at the time detailed construction plans are completed and implemented prior to occupancy. Stop signs, stop bars and stop legends shall be provided at the project access points. The Department of Public Works will review plans and check for compliance with these mitigations. Prior to the issuance of a grading permit. Public Works Department G:IPlanning\2006IPA06-0213 Temecula Water Park CUPIPlanninglMitigation Monitoring Program.doc3 ATTACHMENT NO.1 AERIAL G:IPlanning\2006IPA06-0213 Temecula Water Park CUPIPlanningllnitial Environmental Study.doc 35 CIty of TemeCUla I PA06-0213I o , 245 490 980 1,470 'Feet "'" This map was made by the City ofTemecula Geographic Information System. The map is derived from base data produced by the Riverside County Assessor's Department and the Transportation and land Management Agency of Riverside County. The City ofTemecula assumes no warranty or legal responsibility for the information contained on this map. Data and information represented on this map are subject to update and modification. The Geographic Information System and other sources Should be queried for the most current information. This map is not for reprint or resale. ATTACHMENT 2 SITE PLAN (i:IPlanning\2006\PA06-0213 Temecuia Water Park CUPIPlanningllnitial Environmental Study.doc 36 . IJ ., ., II II I) I) II .. .. lit lit II .. .. II II . 05 ~ > , . o o ~ ~ ~ I I . I . ~ ~ ~ 1;' !! Source: David Neault Associates (July 2006). ; , -t- ---+ -- ---- --~- - t---- o ll! "'''I ~ ~ ill ~* ~ ~ ~ r~ I< ~D. NOTTO SCALE Site Plan 30900001 . 08/2006 I 3_site-plan.mxd ONTI CONSTRUCTION' TEMECULA WATER PARK ATTACHMENT NO.5 STATEMENT OF OPERATIONS G:\Planning\2006IPA06-0213 Temecula Water Park CUPIPlanninglPC Staff Report.doc 14 TEMECULA WATERPARK Statement of Operations Clearwater Waterpark Development is pleased to submit for your review a statement of operations for the development of a waterpark located on Ynez Rd at the intersection of Ynez Rd. and County Center Dr. and near the intersection of Yunez Rd. and Winchester Rd. The park we be developed on approximately +/-15 acres. The site is designed to accommodate approximately +/- 8.5 acres of waterpark with the balance allotted for access, and parking. Following is a partial listing of the key points accompanied by a brief description of the operations that would affect the property under which Clearwater anticipates working: 1. Hours and Days of Operation- The waterpark operating season is about four months of a calendar year. It is anticipated the Temecula Park will be open daily from Memorial Day to Labor Day from 10:00 AM to 8:00 PM. Additionally, the park will open for a few weekends prior to Memorial Day and after Labor Day depending on the weather. 2. Number of Employees- It is anticipated the park will retain a full time staff of 15 employees and 300 seasonal or part-time employees. The full time staff will oversee the year round operation and maintenance of the park. The 300 seasonal employee work forces will primarily be youth recruited from within the local community. 3. Number of Required Parking- Parking will be based on the City's code for a community/recreational pool of 1 space per 1,000 s.f. of recreational area for the park, and standard parking requirements for the adrninistration buildings. This would equate to approximately 370 stalls for the park and an additional 48 for the administration and food service buildings totaling 418 stalls. Currently the park is designed to accommodate 438 vehicles with an additional 14 handicap stalls. 4. Average Daily Peak Trips Generated-. Clearwater anticipates the average daily attendance to be 2,000 people. 50% of the attendance or approximately 185 vehicles will arrive at the park between the hours of 9:30 AM and 12:00 PM. 85% of the daily attendance or approximately 130 cars will arrive before 3:30 PM. The remaining 15% or 55 vehicles will arrive at the park between the hours 3:30 PM and 8:00 PM. According to a parking and traffic, nearly all trips generated by the operation of the Temecula Park will not be during peak hours. 5. Type of Equipment or Process Used- There is not special equipment or processes used in the operation of a waterpark. 6. Description of Hazardous Materials- In order to maintain standards set forth by local health codes, a storage area for liquid chlorine will be designed into the park. This storage area will be located at the SE corner of the park behind the wave pool. In addition to liquid chlorine, a small quantity of muriatic acid will stored and used on site. Clearwater Waterpark Development feels the development of a waterpark in the City of Temecula will prove to be a tremendous asset to the community. It will not only provide wholesome family recreation for the residents of Temecula , but provide employment opportunities to hundreds of youth. Clearwater Waterpark Development looks forward to working with the City of Temecula and successfully constructing a Temecula's own premier waterpark. COUNCIL BUSINESS ITEM NO. 44 Approvals City Attorney Director of Finance City Manager 1#-f'"" /)12. Jp CITY OF TEMECULA AGENDA REPORT TO: City Manager/City Council FROM: Susan W. Jones, City Clerk/Director of Support Services DATE: November 14, 2006 SUBJECT: Public/Traffic Safety Commission Appointment PREPARED BY: Cheryl Domenoe, Administrative Assistant RECOMMENDATION: Appoint one applicant to serve a full three-year term on the Public/Traffic Safety Commission through October 10, 2009. BACKGROUND: The term of Commissioner Scott Lanier expired on October 10,2006. The City Clerk's office has followed the Council's established procedure for filling Commission vacancies by advertising the openings in the local newspaper. Notices were also posted at various locations within the City and on the City's Web page. When the deadline was reached for accepting applications, the applications were forwarded to the subcommittee comprised of Mayor Roberts and Councilmember Edwards for review and recommendation. Mayor Roberts recommended the appointment of Ralph Inman and Councilmember Edwards recommended the appointment of Bob Hagel to serve a full three-year term through October 10,2009. All applicants are registered voters and live within the city limits of the City of Temecula. Attached are copies of the applications that were received by the filing deadline of September 26, 2006. FISCAL IMPACT: None ATTACHMENTS: Three (3) Copies of Applications for Appointment. Juliet Grossman September 23, 2006 I want to serve on the Public and Traffic Safety Commission because the issues it addresses ~e critical to our community and will have a deep, lasting impact on our quality of life. I want to be a decision maker in the process of measured, rational, well- planned growth. Temecula has experienced explosive growth over the past decade, and decisions made now will make a tremendous difference in livability and success for homeowners, business owners, and commercial and agricultural ventures. I am qualified for this position for several reasons. My background as a lawyer provides me with the critical analysis skills required to give due consideration to the Commission's agenda items. In addition, my resume of volunteer service has given me a great deal of experience working as a member of a committee. I come to the table prepared to listen to, and learn from, my fellow Commission members, as well as contribute my own opinions. I also have a thorough and realistic understanding of what makes a meeting function well, and the means and ability to fully participate. I look forward to serving my city as a member of the Public and Traffic Safety Commission. Please call me at (951)303-1403 or email meatjgrossmanesq@yahoo.com with any questions or concerns. City of Temecula - Traffic/Public Safety Commission Commission Appointment Application Educational Backaround/De!:lrees Degrees "* B.S. of Science - Economics "* B.S. of Science - Industrial Relations Rider University, Lawrencevilie, N.J. 1974 Safety Education "* Community Emergency Response Teams (CERT) Certified, participated in 5 CERT Drills "* First Aid (AHA) "* CPRlAED (AHA) "* Standardized Emergency Management System (SEMS) "* Neighborhood Watch Leadership (authored) "* TCC Emergency Radio Communications "* Family Disaster Preparation "* American Red Cross Shelter Operations "* American Red Cross Shelter Simulation "* Natural Gas Dangers Seminar "* Attended 2005 Disaster Resistant California & Educational Seminars City/County/State Board. Committee or Commission "* Temecula Citizen Corps o Program Administrator: September 2004 - Present o TCC Marketing Committee, Budget Committee, Training/Drill Committee o Developed Neighborhood Watch Leadership Training Program o Attended more than 20 Neighborhood Watch Meeting throughout Temecula o Area Director: January 2004 - August 2004 "* City of Murrieta - Business Roundtable Committee: 2005 - Present "* Southwest Riverside County Emergency Communication Committee: 2005 - Present "* California Citizen Corps Council Advisory Committee: 2005 - 2006 Additional Professional. Technical & Community Service Organizations "* American Red Cross Shelter Volunteer "* Temecula Chamber of Commerce o Chair, Business Resource Development Committee: January 2005 - Present o Ambassador: April 2003 - December 2005 "* Murrieta Chamber of Commerce o Director, Board of Directors: July 2006 - Present o Chamber CERT Liaison to Murrieta Fire Department: 2006 o Co-Chair Ambassador Committee: July 2005 - June 2006 o Ambassador: April 2003 - June 2006 "* Elm Street Park Property Owners Association: Architectural Committee: 2005 - Present "* Awards & Recognition Association Member: 2002 - Present Wish to Serve & Qualifications I am proud of T emecula's history and progress and wish to actively participate in its continued growth and prosperity through providing the Council advice and input on traffic and safety matters that impact us all. In addition, I would like to help represent Temecula to our surrounding neighbors including Murrieta, Pechanga, and wine country assisting with safety and traffic issues that are interconnected with our neighbors. Through participation in organizations such as the Temecula Citizen Corps, Southwest Riverside County Emergency Communication Committee and local Chambers, I believe I have a good sense of the challenges and opportunities in our City. I have hosted TCC leadership meetings with police and fire department personnel providing updates on a variety of safety topics. I have become familiar with most of the departments, their objectives, and how they serve our City. Participation in HOA, Neighborhood Watch meetings and business disaster preparation presentations has provided me the opportunity to hear our citizen's concerns and ideas from every area of our City. I believe every commissioner should be active in listening to our citizen's ideas and concerns, and actively represent the City at various City events, especially safety fairs and similar safety events. I will actively participate in Neighborhood Watch and other similar meetings and events, as well as communicate with staff, firefighters and deputies to better understand the challenges and dangers our citizens face each day. I strongly believe each citizen is responsible for self- education. I support education and prevention programs to enhance the safety of our citizens. I also believe that commissioners should provide advice and input to Council and Staff and then fully support their decisions to our citizens. A united team serves our City best. In 2005, I recommended to Staff that a Participation Measurement System be put in place for all the commissions to further support active community participation by commissioners and provide City Council with a tool to better evaluate commissioner performance for reappointments. I understand a program is now in place. I pledge to be an educated, active and a visible commissioner. I support a term limit of 2 terms for all City Commissioners. Those who have reached their term limits could apply again after one or two years. Elected officials are subject to an election process where voters place their vote in private. City Council does not have this luxury, . therefore, it is difficult to vote in public to replace Commissioners who are reapplying after several terms and have performed their duties reasonably well. Term limits would provide fresh ideas and energy with a graceful exit for Commissioners who have served their City. i ; Application of Bob Hagel I wish to serve on the Public Traffic Safety Commission for the City of Temecula. I feel I'm qualified for the position by having a Bachelors degree in Criminology and 27 years experience with the California Highway Patrol; 10 years as an officer and 17 years as a Sergeant. Currently, I am a Sergeant assigned to Rainbow Inspection Facility. As a sergeant, I have written several grants to enhance traffic safety and have organized many DUI check points and special enforcement units. I am currently a resident of T emecula and have been for 17 years and am fully aware of how the growth of Temecula has created many traffic safety related issues. I feel my experience and education would be beneficial to the commission and enhance the overall traffic safety for the City of Temecula. ITEM NO. 45 Approvals City Attorney Director of Finance City Manager f,#-("" I//l !fr- CITY OF TEMECULA AGENDA REPORT TO: City Manager/City Council FROM: Genie Roberts, Director of Finance DATE: November 14, 2006 SUBJECT: Issuance of Two Series of Tax Allocation Bonds by the Redevelopment Agency of the City of Temecula for the Temecula Redevelopment Project NO.1 PREPARED BY: Polly von Richter, Senior Debt Analyst RECOMMENDATION: That the City Council: 1. Adopt a resolution entitled: RESOLUTION NO. 06- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA APPROVING THE ISSUANCE BY THE REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA OF TWO SERIES OF TAX ALLOCATION BONDS BACKGROUND: On August 8,2006, the Redevelopment Agency adopted Resolution No. RDA 06-06, expressing the intent of the Agency to issue tax allocation bonds to finance various Old Town area infrastructure projects, including relocation, demolition and grading costs, undergrounding of utilities, street improvements, civic plaza improvements and the construction of a roughly 480 space parking facility. On September 12, 2006 the Redevelopment Agency adopted Resolution No. RDA 06-07, designating various professionals, including a financial advisor, a fiscal consultant, bond counsel, disclosure counsel and a bond underwriter, to assistthe Redevelopment Agency in connection with the issuance of the bonds. The Redevelopment Agency, working with its consultants, has determined that the issuance of bonds in two series will result in the most funds available to finance the redevelopment projects. One series of bonds, referred to in the bond documents as "Series A," is to be issued on a parity basis with the Redevelopment Agency's outstanding 2002 tax allocation bonds, and it is expected that a bond insurance policy and reserve fund surety bond will be obtained for the Series A bonds so that they will be rated in the highest rating category by the municipal bond rating agency that will rate the bonds. The second series of bonds, referred to in the bond documents as "Series B," is to be issued on a basis subordinate to the Series A bonds (and the outstanding 2002 Redevelopment Agency bonds), and will not be rated by a municipal rating agency. The Series A and Series B bonds are hereafter collectively referred to as the "Bonds." The proposed Bond issues will be payable solely from a pledge of the Tax Revenues arising from the Redevelopment Project. Tax increment revenues required by the Redevelopment Law to be used for housing purposes will not be pledged to or used for the repayment of the Bonds. No City general funds or other moneys will in any way be pledged or obligated towards the payment of the Bonds. The Agency is proposing to issue the Bonds in an aggregate principal amount such that will maintain a debt service coverage ratio (annual available Tax Revenues divided by annual Bond debt service) of at least 110%, thereby assuring that a portion of the Tax Revenues will be available after the payment of Bond debt service to pay annual administrative costs of the Agency. While current interest rates indicate that the aggregate initial principal amount of the Bonds will be approximately $21,500,000, the Agency is seeking a bond authorization of up to $35,000,000 in the event that interest rates decrease prior to the sale of the Bonds thereby allowing for more Bond principal to be supported by the same level of Tax Revenues. In the event that interest rates rise prior to the sale of the Bonds, less principal may be sold than currently projected. In order to issue the Bonds, the Redevelopment Law requires that the City Council approve the issuance of the Bonds by the Agency. In addition, in order for the Agency to sell the Bonds on a negotiated basis with Stone & Youngberg LLC, the bond underwriter that has been working with the Agencyon the Bond issue (the "Underwriter"), relevant State law requires that the Temecula Public Financing Authority buy the Bonds from the Agency for resale to the Underwriter. The purchase price from the Agency to be paid by the Public Financing Authority will be the same as the sale price of the Bonds by the Public Financing Authority to the Underwriter, so no Public Financing Authority funds are involved in the transaction. The proposed resolution of the Public Financing Authority approves the purchase and sale by it of the Bonds and makes related findings required by applicable law. The action requested of the City Council is to adopt a resolution approving the issuance of the Bonds by the Redevelopment Agency. The date for the closing of the Bond issue, and the time when Bond proceeds are expected to be available, is currently expected to be December 14'h FISCAL IMPACT: The Bonds will have no financial impact on the City, as all payments of principal and interest on the Bonds will be paid solely from the Tax Revenues of the Agency. The Agencywill be obligated to use Tax Revenues from the Redevelopment Project each yearto pay the debt service on the Bonds, and to pay the annual costs of administering the Bond program. ATTACHMENTS: Resolution No. 06- RESOLUTION NO. 06- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA APPROVING THE ISSUANCE BY THE REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA OF TWO SERIES OF TAX ALLOCATION BONDS THE CITY COUNCIL OF THE CITY OF TEMECULA DOES HEREBY RESOLVE AS FOLLOWS: Section 1. The Redevelopment Agency of the City of Temecula (the "Agency") has determined at this time to issue its Redevelopment Agency of the City of Temecula Temecula Redevelopment Project No. 1 2006 Tax Allocation Bonds, Series A and its Redevelopment Agency of the City of Temecula Temecula Redevelopment Project No. 1 2006 Tax Allocation Bonds, Series B (Subordinate Lien) (collectively, the "Bonds") to provide funds to finance redevelopment activities of the Agency within or of benefit to the Agency's Temecula Redevelopment Project NO.1. Section 2. In accordance with the requirements of Section 33640 of the California Health and Safety Code, the City Council wishes at this time to approve the issuance and sale of the Bonds by the Agency. Section 3. The issuance and sale of the Bonds by the Agency in the aggregate principal amount of not to exceed $35,000,000, and the use of the proceeds of the Bonds to finance redevelopment activities of the Agency within or of benefit to the Agency's Temecula Redevelopment Project No.1, is hereby approved. Section 4. This Resolution shall take effect upon its adoption. PASSED, APPROVED, AND ADOPTED by the City Council of the City of Temecula this 14th day ofN ovember, 2006. Ron Roberts, Mayor A HEST: 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 14th day of November, 2006, by the following vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: ABSTAIN: COUNCIL MEMBERS: Susan W. Jones, MMC City Clerk DEPARTMENTAL REPORTS ITEM NO. 46 Approvals City Attorney Director of Finance City Manager ~ iJil n # i/ CITY OF TEMECULA AGENDA REPORT TO: City Manager/City Council FROM: Debbie Ubnoske, Director of Planning DATE: November 14, 2006 SUBJECT: Monthly Report The following are the recent highlights for the Planning Division of the Community Development Department for the month of September. CURRENT PLANNING ACTIVITIES New Cases The Division received 65 new applications for administrative, other minor cases, and home occupations including 4 applications for public hearings during the month of September. The new public hearing cases are as follows: DEVELOPMENT PLAN MINOR CONDITIONAL USE PERMIT MINOR MODIFICATION TENTATIVE PARCEL MAP 1 1 1 1 Status of Maior Proiects New Proiects . Tentative Parcel Map - A Tentative Parcel Map for Dalton II to combine lots 9 -14 located at 41925 Fifth Street. The project was submitted on September 18, 2006, and staff is currently reviewing the project. (PA06-0275 - DAMKO) . De Portola Professional Offices - A Development Plan application to construct three medical office buildings totaling 37,825 square feet. The project is located on the southwest corner of Margarita Road and De Portola Road. The project was submitted on September 18, 2006. A DRC meeting is scheduled for October 26, 2006. (PA06-0278 - SCHUMA) . Margarita Crossings - Minor Modification to an approved Development Plan to add a 710 square foot outdoor patio dining area to the west side of Building C located in the Margarita Crossings shopping center at 29073 Overland Drive. The project was submitted September 12, 2006, and a DRC letter was mailed out October 12, 2006. (PA06-0269 - SCHUMA) . Szeto Liquor License - A Minor Conditional Use Permit for the incidental sale of alcoholic beverages for a proposed restaurant in an existing building located at 41501 Margarita Road in the Bel Villaggio Center. The project was submitted on September 28, 2006, and comments are due on October 30, 2006. (PA06-0291 - SCHUMA) Recentlv Approved Proiects . Mazarro's Italian Restaurant - Minor Conditional Use Permit for Mazzaro's Italian Restaurant to upgrade an existing type 41 license to a type 47 license to authorize the sale of beer wine and distilled spirits. The application was submitted on April 12, 2006, and comments were due May 3, 2006. Staff sent an exhibits request letter for Director's Hearing on May 5,2006. Staff is awaiting the submittal of the Public Hearing material information. Staff sent a 30-day no response letter to the applicant on June 28, 2006, to determine project status. This project was approved at the September 14, 2006 Director's Hearing. (PA06-0104- LECOMTE) . Temecula Community Church - A Conditional Use Permit application with a Development Plan for the addition of three buildings and the removal of existing modular buildings and trellises. The project is located at 28871 Santiago Road. The project was submitted on December 15, 2005. A DRC letter was sent out on February 3, 2006. The applicant resubmitted plans on March 13, 2006. The project was approved at the Planning Commission meeting on September 6, 2006. (PA05-0389 - SCHUMA) Proiects Under Review Commercial . First Bank - A Development Application for a 4,000 square foot retail building (First Bank) located within the Creekside Plaza Shopping Center near the southeast corner of Highway 79 South and Pechanga Parkway. A DRC letter was mailed to the applicant on June 30, 2006. The application was submitted on September 14, 2006. Staff is currently reviewing the project. (PA06-0162 - DAMKO) . Redhawk Car Wash and Tire Store - A Development Plan and a Conditional Use Permit submitted on June 8, 2005, for three buildings totaling 8,354 square feet used for a self- serve carwash and tire store. The project is located on the northeast corner of Margarita Road and De Portola Road. A DRC meeting was held on August 18, 2005. A DRC letter was mailed on August 23, 2005. The applicant resubmitted on July 24, 2006. A second DRC letter was sent to the applicant on August 8, 2006. The applicant resubmitted plans on September 12, 2006. Staff is currently reviewing the project. (PA05-0172 - DAMKO) . Temecula Water Park - A Development Plan with a Conditional Use Permit for a 13,000 square foot water park located at the northwest intersection of Ynez Road and County Center Drive. The project was submitted on July 21,2006. A DRC was held on August 3, 2006. Environmental documents and applicant resubmittal were received on August 18, 2006. The project is scheduled for an October 18, 2006 Planning Commission hearing. (PA06-0213 - DAMKO) . Halcon de Rojo -A Development Plan and Condo Map submitted on July 13, 2006, forthree professional office buildings totaling 65,880 square feet. The project is located 500 feet east of Jedediah Smith Road on the north side of Highway 79 South. A DRC meeting was held on August 24, 2006, and a DRC letter was sent to the applicant on September 1, 2006. Staff is currently awaiting the submittal of revised plans. (PA06-0205, PA06-0204 - DAMKO) . Renaissance Station - A Development Plan to construct a 46,340 square foot three-story building with dining, office, and retail establishments on 0.47 acres located at 42081 Third Street. The application was submitted on April 21,2006, and a DRC meeting was held on June 8, 2006. A DRC letter was mailed to the applicant on June 9, 2006. Revised plans were submitted on August 23, 2006. Staff is currently reviewing the revised plans and anticipates presenting at the project at the November 13, 2006 meeting of the Old Town Local Review Board. (PA06-0113 - FISK) . DCH Dodge - A Major Modification for the addition of 3,089 square feet of building area and fayade improvements for an existing 27,101 square foot building located on the west side of Ynez Road approximately 600 feet north of DLR Drive. The application was submitted on March 30, 2006, and a DRC meeting was held on May 18, 2006. The project is scheduled for the November 1, 2006, Planning Commission hearing. (PA06-0082 - FISK) . YMCA - A Development Plan to construct a 26.960 square foot YMCA building within a 0.66 acre lease area of a 20.2 acre site located at 29119 Margarita Road. The application was submitted on November 29, 2005. Staff is currently reviewing the application. A DRC meeting was held on January 26, 2006. A 30-day no response letter was sent to the applicant on March 13, 2006, and a 60-day letter was sent to the applicant on April 3, 2006. Revised plans were submitted on June 15,2006, and a DRC meeting was held on August 3, 2006. A DRC letter was mailed to the applicant on August 8, 2006. Revised plans were submitted on September 7, 2006. Staff is currently reviewing the revised plans. (PA05- 0365 - WEST) . Ahmed Medical Office - A Development Plan to construct a 13,500 square foot, two story medical office building on 0.86 acres located at 28975 Old Town Front Street. The application was submitted on May 15, 2006. A DRC meeting was held on June 28, 2006, and a DRC letter was mailed on June 29, 2006. Revised plans were submitted on October 10,2006, and Staff is currently reviewing the revised plans. (PA06-0140 - LECOMTE) . Rancho Pueblo Office Buildings - An I ndustrial Condo Map (TPM 35065) submitted on July 31, 2006 to subdivide four buildings into commercial condominiums located on the north side of Highway 79 South, east of Avenida de Missiones. A DRC letter was sent to the applicant on September 6,2006. Revised plans were submitted on October 2,2006. Staff iscurrently reviewing the revised plans. (PA06-0221 - KITZEROW/PETERS) . Mountain View Community Church - A Minor Modification submitted on March 9, 2006, to add four modular buildings to an existing site at Mountain View Community Church (formerly Hope Lutheran) located at 29385 Rancho California Road. DRC meeting was held on April 6, 2006. A DRC letter was sent to the applicant on April 11 ,2006. A 30-Day No Response letter was sent out on May 9,2006, and a 60-Day No Response letter was drafted on June 28,2006, and mailed out to request the appropriate revisions and determine project status. Staff spoke with applicant to inquire in regards to status. Applicant is awaiting a timeline from the church in order to make the appropriate revisions to the plans but still intends on pursuing the application.(PA06-0062 - LECOMTE) . Gateway Plaza - A Development Plan submitted on June 12,2006, for a proposed two-story office building totaling 30,573 square feet located on the south side of Highway 79 South, off of Avenida De Missiones. A DRC meeting was held on July 20,2006, with the applicant. A DRC letter was sent to the applicant on August 18, 2006. Staff sent a 30 Day No Response letter on October 12, 2006. (PA06-0178 - LECOMTE) . Dr. Levi's Office and Retail - A Major Modification to renovate the former 5 & Diner into offices and retail facilities located at 26460 Ynez Road. The application was submitted on October 31, 2005. A DRC meeting was held on December 22, 2005. The applicant submitted revised plans on April 27, 2006. Comments were due on May 15,2006. Staff sent out a second DRC letter on June 2, 2006. Staff sent a 30 Day No Response letter to follow-up with applicant on September 11, 2006. (PA05-0329 - LECOMTE) . Blue Marlin Minor Modification - A Minor Modification for the addition of a patio dining area for an existing restaurant located at 27590 Jefferson Avenue. A DRC meeting was held on September 7, 2006, and a DRC letter was sent on September 7, 2006 and revised plans were submitted on September 29,2006. Staff is currently reviewing plans. (PA06-0226- LE COMTE) . RV Super Center - A Minor Modification (Minor Exception) for RV Super Center to add an additional 8,000 square feet of display area to an existing RV display lot located at 27941 Jefferson Avenue. The applicant is also requesting a minor exception to decrease the landscaping area from 29 percent to 17 percent as a result of the 8,000 square foot display hardscape. A DRC letter was sent to the applicant on June 26, 2006, and revised plans were submitted on July 6, 2006. A second comment letter was sent out on July 31, 2006. Staff is currently awaiting resubmittal. (PA06-0155 - LECOMTE) . Lyndie Lane Speculative Building - A Development Plan to construct a 9,265 square foot commercial building located at 29748 Rancho California Road. The application was submitted on October 14, 2005. A DRC meeting was held on December 8,2005. Revised plans were submitted on June 15, 2006. Additional comments were sent on July 10,2006. Revisions were submitted on August 14, 2006, and additional comments were sent. Staff is currently awaiting the submittal of revised plans. (PA05-0305 - SCHUMA) . Abbott (Guidant) East Campus - A Development Plan to construct a 412,646 square foot office building an approximately 20.54 acres located at 41852 Motor Car Parkway. The project was submitted on July 11, 2006, and a DRC meeting was held on August 3,2006. Final plans were submitted on October 3, 2006, and the project is scheduled for a Directors Hearing on October 26, 2006. (PA06-0201 - SCHUMA) . James Webb Building -A Development Plan to construct a 22,626 square foot, three-story building on a 0.55 acre lot located at 27423 Ynez Road. The project was submitted on June 26, 2006, and a DRC meeting was held on August 3, 2006. A DRC letter was sent to the applicant on August 7, 2006, and staff is awaiting resubmittal. (PA06-0187 - SCHUMA) . Down's Energy - A Development Plan and Conditional Use Permit application for a liquid natural gas distribution facility and a 14,776 square foot office speculative building. The project is located at the northwest corner of Rancho Way and Diaz Road. The application was submitted on December 22, 2005. A DRC meeting was held on January26, 2006. The applicant resubmitted on May 17, 2006, and comments were sent out on June 2, 2006. Revised plans were submitted on August 7, 2006, and this project is tentatively scheduled for a November 15, 2006, Planning Commission meeting. (PA05-0402, PA06-0135- SCHUMA) Subdivisions . Roripaugh Ranch PA16-18 TTM - A Tentative Tract Map (No. 29368) to subdivide 100.07 gross acres into 399 lots (389 single-family residential lots) located in Planning Area 16, 17, and 18 of the Roripaugh Ranch Specific Plan. The application was submitted on December 7, 2005. A DRC meeting was held on February 7, 2006. The project was resubmitted on April 14, 2006, and comments were sent to the applicant on May 19, 2006. The project was resubmitted on August 1,2006. A DRC meeting was held on August 30,2006 and staff is awaiting resubmittal. (PA05-0375 - KITZEROW/PETERS) . Roripaugh Ranch PA 10 TTM - A Tentative Tract Map (No. 30766) to subdivide 8.1 gross acres into 15 lots (14 single-family residential lots) within Planning Area 10 of the Roripaugh Ranch Specific Plan. The project was submitted on December 12, 2005. A DRC meeting was held on January 26, 2006, and comments were mailed to the applicant. The project was resubmitted on April 14, 2006, and comments were sent to the applicant on May 10, 2006. Staff is awaiting resubmittal. (PA05-0377 - KITZEROW/PETERS) . Roripaugh Ranch PA19 TTM - A Tentative Tract Map (29367) to subdivide 28.03 gross acres into 27 lots (25 single-family residential lots and 2 open space lots) located in Planning Area 19 of the Roripaugh Ranch Specific Plan. The project was submitted on December 12, 2005. A DRC meeting was held on February 9, 2006, and comments were mailed to the applicant. Revised plans were submitted on May 16,2006, and comments were sent to the applicant on June 22, 2006. The revised project was submitted on July 31,2006. A DRC meeting was held on August 30, 2006 and Staff is awaiting resubmittal. (PA05-0384- KITZEROWI PETERS) . Roripaugh Ranch PA23 and 24 TTM - A Tentative Tract Map (30768) to subdivide 21.5 gross acres into 123 lots (122 single-family residential lots/one open space lot) located in Planning Areas 23 and 24 of the Roripaugh Ranch Specific Plan. Minimum lot size is 4,000 square feet, with an average lot size of 5,443 square feet. The project was submitted on December 13, 2005. A DRC meeting was held on February 9,2006, and comments were mailed to the applicant. Revised plans were submitted on May 4,2006, and comments were sent to the applicant on June 6, 2006. The project was resubmitted on July 24, 2006. Comments were sent to the applicant on August 30, 2006 and staff is awaiting resubmittal. (PA05-0387 - KITZEROW/PETERS) . Roripaugh Ranch PA33A - A Tentative Tract Map (No. 90767) to subdivide 10.96 gross acres into 15 lots (14 residential lots) located within Planning Area 33A in the Roripaugh Ranch Specific Plan (generally located at the terminus of Nicolas Road and Butterfield Stage Road). The application was submitted on January 4,2006. A Pre-DRC meeting was held on February 21, 2006, and a DRC meeting was held on February 23, 2006. Comments were mailed to the applicant on February 27,2006. The project was resubmitted on August 15, 2006. Comments were sent to the applicant on September 9, 2006. Staff is awaiting resubmittal. (PA06-0002 - KITZEROW/PETERS) . Roripaugh Ranch PA20 and 21 - A Tentative Tract Map(29366) to subdivide 52.3 gross acres into 53 lots (51 residential/2 open space) within Planning Areas 20 and 21 of the Roripaugh Ranch specific Plan, generally located along South Loop Road, west of Butterfield Stage Road (APN 964-180-013). Lot sizes range from 20,000 to 56,000 square feet with an average size of 33,504 square feet. The application was submitted May 3, 2006. A DRC meeting was held June 8, 2006, and a DRC letter was mailed June 12, 2006. A DRC meeting was held on August 30, 2006, and staff is awaiting resubmittal. (PA06'{)127 - KITZEROW/PETERS) . Tentative Tract Map (TPM 32355) -A Tentative Tract Map to subdivide 16 gross acres into 104 single-family residential lots and three open space lots at the northwest corner of Nicolas Road and Butterfield Stage Road in Planning Area 12 of the Roripaugh Ranch Specific Plan known as Calabriza. The project was submitted on August 7, 2006. A DRC meeting was held on September 21, 2006, and comments were mailed on September 27, 2006. Staff is awaiting resubmittal. (PA06-0228 - KITZEROW/PETERS) . Roripaugh Ranch PA 12 - A Home Product Review application to include four floor plans and four elevation types ranging in size from 1,799 square feet to 2,257 square feet for 104 single family lots in Planning Area 12 of the Roripaugh Ranch Specific Plan. The project was submitted August 7, 2006. A DRC meeting was held on September 21, 2006, and comments were mailed on September 27,2006. Staff is awaiting resubmittal. (PA06-0229 - KITZEROW/PETERS) . Tentative Parcel Map 33488 -A Tentative Parcel Map to subdivide 7.5 gross acres into two lots with a minimum net lot size of 2.5 acres located at 30876 Lolita Road. This project was submitted on August 22, 2006. A DRC letter was sent to the applicant on September 25, 2006. Staff is currently awaiting resubmittal. (PA06-0245 - LE COMTE) . Tentative Parcel Map (TPM 35039) - A Tentative Parcel Map to subdivide 4.17 acres into 3 lots with a minimum lot size of 1.0 net acres located at Santiago and John Warner Roads. APN: 945-080-017. The project was submitted on August 1, 2006. A DRC meeting was held on September 12, 2006. Staff is currently reviewing the revised plans submitted on October 2, 2006. (PA06-0222 - LE COMTE) . Roripaugh Ranch PA22 - A Tentative Tract Map application for Condominium purposes (TT32358) and a Home Product Review application for 126 single family residential units located at the northeast corner of Butterfield Stage Road and South Loop Road. The project was submitted on August 31, 2006. A DRC meeting is scheduled for October 19, 2006. (PA06-0259 - SCHUMA) . Cabrillo Avenue - A Tentative Parcel Map and Minor Exception to subdivide a 4.98 acre residential site into two parcels located at 30465 Cabrillo Avenue. The project was submitted on July 17,2006, and a DRC letter was sent on August 8,2006. Staff is awaiting environmental documents. (PA06-0206 - SCHUMA) . Roripaugh Ranch PA14 and PA15 -A Tentative Tract Mapto subdivide 27.9 acres into 181 single family residential lots and three open space lots. The project is located within Planning Area 14 and 15 of the Roripaugh Ranch Specific Plan. The application was submitted on April 19, 2006. A DRC was held on May 25,2006. Revisions were submitted on August 1, 2006. A second DRC letter was sent and staff is awaiting revised plans. (PA06-0110 - SCHUMA) Industrial . Alvarez Industrial Buildings - A Development Plan to construct two industrial buildings totaling 32,386 square feet on 2.5 acres located at Calle Corte and Del Rio Road. The application was submitted on October 4, 2004, and a DRC was held on November 18, 2004. The applicant resubmitted on March 27, 2006, and comments were sent May 30, 2006. Revisions were submitted on July 7, 2006. Staff is currently awaiting an Environmental Habitat Study to be submitted. (PA04-0544 - SCHUMA) Mixed Use/Residential . Temecula Lane II - A Conditional Use Permit, Development Plan and Vesting Tract Map submitted on December 20,2005, for the development of 297 multi-family residential units located on the southeast corner of Pechanga Parkway and Loma Linda Road. A DRC meeting was held on February 2,2006, and a DRC letter was mailed on February 9,2006. Staff has tentatively scheduled this project to the September 6, 2006, Planning Commission meeting. The applicant requested to continue the hearing to an off calendar date due to company restructuring. (PA05-0395, PA05-0396, PA05-0397 - DAMKO) . Rancho Highlands III-A Conditional Use Permit, Development Plan and Vesting Tentative Map submitted on December 21, 2005, to allow a subdivision for condominium purposes and development of 137 multi-family units located near the northeast corner of Ynez Road and Rancho California Road. A DRC was held on February 16, 2006, and a DRC letter was mailed on March 3, 2006. The applicant submitted revised plans on May 1,2006. Staff met with the applicant on July20, 2006, and A DRC letter was mailed to the applicant on May 23, 2006. Staff is currently awaiting resubmittal. (PA05-0398, PA05-0399, PA05-0400 - DAMKO) . Harveston TM 34698 - A Tentative Tract Map application to subdivide 8.64 acres into 64 cluster units located on the northwesterly corner of Date Street and Lakeview Road within the Harveston Specific Plan. The application was submitted on August 24, 2006, and a DRC meeting will be held on October 26,2006. Staff is currently reviewing the application. (PA06-0252 - DAMKO) . Danbury at Harveston - A Home Product Review application for 64 cluster homes located in the Danbury community at Harveston located on the north side of Date Street within the Harveston Specific Plan (TM34698). The application was submitted on August 24, 2006, and a DRC meeting will be held on October 26, 2006. Staff is currently reviewing the application. (PA06-0253 - DAMKO) . Tierra Vista Condominiums - An Administrative Development Plan to construct 23 residential condominiums on 1.5 acres. The subject property is located on the northwest corner of Tierra Vista Road and Ynez Road. The application was submitted on September 30, 2003. Revised plans were submitted on July 7, 2004. A second DRC letter was provided on September 10, 2004. Revised plans were submitted on February 7, 2005. A third DRC letter was provided to the applicant on April 8, 2005. Revised plans were received on August 2, 2005. Staff is currently awaiting submittal of correspondence from the county geologist regarding earthquake fault line setbacks. (PA03-0552 - FISK) . Hemingway at Redhawk - A Home Product Review for 108 single-family homes in the Redhawk Specific Plan. Elevations include four floor plans and elevation types. The application was submitted on April 7, 2006. A DRC meeting was held on May 18,2006, and a DRC letter was sent to the applicant. Revised plans were submitted on June 14, 2006, and a second DRC meeting was held on July 27,2006, and a DRC letter was sent on July 28,2006. A third DRC meeting was held on September 14, 2006. Staff anticipates a November Director's Hearing for the project. (PA06-0101 - LECOMTE) . Pujol Condos - A Development Plan to construct nine multi-family condominium buildings totaling 134,213 square feet on 7.85 acres located on the west side of Pujol Street, approximately 1,800 feet south of First Street. The application was submitted on July 21 , 2005. A DRC meeting was held on September 1,2005, and a DRC letter was mailed to the applicant on September 1, 2005. Revised plans were submitted on October 26, 2005. A second DRC letter was sent to the applicant on December 13, 2005. A 30-dayno response letter was sent to the applicant on March 15, 2006, and a 60-day no response letter was sent on April 3, 2006. Staff is currently awaiting the submittal of revised plans. (PA05-0208- FISK) . Renaissance Villages - A Residential Development Plan and Tentative Tract Map to construct 58 condominium units totaling 78,397 square feet on 3.98 acres generally located on Pujol Street, approximately 100 feet north of Main Street. The application was submitted on August 3, 2005. A DRC meeting was held on September 26, 2005, and a DRC letter was mailed to the applicant on September 27,2005. Revised plans were submitted on October 26, 2005. A Development Agreement must be approved by City Council prior to staff scheduling the project for a Planning Commission meeting or revised plans must be proposed. (PA05-0229 - FISK) . Mira Loma PDO -A Planned Development Overlay to change the zoning ofa 7.24 acre site from High Density Residential (H) to PDO -11 to change the development standards forthe site. The project site is located at 29601 Mira Loma Road. The project was submitted on August 8, 2005. A DRC meeting was held on September 29, 2005, and a DRC letter was sent to the applicant on October 4, 2005. A second DRC meeting was held on February 16, 2006. A second DRC letter was sent to the applicant on February 24, 2006. Revised plans were submitted on April 13, 2006, and on June 29, 2006. An Initial Environmental Study has been prepared for the project and staff anticipates a November Planning Commission hearing for the project. (PA05-0234 - FISK) . Pujol Condos - A Tentative Parcel Map for condominium purposes for a residential condominium project located approximately 1 ,800 feet south of First Street on the west side of Pujol Street. The application was submitted on July 7, 2005. A DRC meeting was held on September 1, 2005, and a DRC letter was mailed on September 1, 2005. Revised plans were submitted on October 26, 2005. A second DRC letter was sent to the applicant on December 13, 2005. A 30-day no response letter was sent to the applicant on March 15, 2006, and a 60-day letter was sent to the applicant on April 3, 2006. Staff is currently awaiting resubmittal of plans. (PA05-0209 - FISK) . Naron Pacific Tentative Tract Map 30434 - A proposal for a Tentative Tract Map to subdivide 32 gross acres into 13 residential and 2 open space lots in the Chaparral area. The application was originally submitted on April 18, 2002. The CAD has made a recommendation on policy for the Chaparral Area allowing one-half acre lots if it does not increase the "net" density. Staff met with applicant in April to discuss grading issues and begin preparation of an Initial Study. An environmental constraint map was submitted on February 9, 2005. Staff met with the applicant on March 22, 2005 to discuss grading impacts and received revised plans and constraints map. A letter was mailed to the applicant on April 7, 2005, informing him that the submitted plans are not adequate, the project is still considered incomplete, and additional information is still required in order to proceed with processing. Staff met internally on April 8, 2005, to discuss General Plan update. A letter was sent to the applicant on April 13, 2005, to explain City Council decision not to modify Chaparral Policy; therefore, project plans must be revised to adhere to existing policies within the General Plan. Staff is currently awaiting submittal of revised plans. A 30- day close-out letter was sent certified mail to the applicant on September 16, 2005, and the applicant requested additional time to revise plans. A 60-day follow up letter was mailed on January 23, 2006. Required studies were submitted on March 23, 2006. A DRC meeting was held on April 20, 2006 and comments were sent to the applicant. A meeting with the project consultant was held on May 16, 2006 to discuss the project. Staff is awaiting resubmittal. (PA02-0204 PA02-0193 - KITZEROW/PETERS) . Tentative Tract Map 32780 - A Tentative Tract Map to divide 22.45 acres into 38 single- family lots on Walcott Lane north of La Serena. The project was submitted on August 10, 2005, and is awaiting applicant response. A DRC meeting was held and a DRC letter was mailed to the applicant on December 13, 2005. The project is currently inactive, pending the outcome of the Nicolas Valley Rural Preservation Area Special Study. (PA05-0240- SCHUMA) . Stratford at Redhawk - A Home Product Review for 106 residential lots located generally at the southern boundary of the City on Peach Tree Street and Primrose Avenue. The project was submitted on May 10, 2006, and a DRC was held on June 15, 2006. Revisions were submitted on July 5,2006 and additional comments were sent on July 28,2006. Revisions were submitted on August 30, 2006. A third DRC letter was sent on September 21, 2006. Staff is currently awaiting revised plans and anticipates a November Director's Hearing. (PA06-0137 - SCHUMA) . Redhawk PA-13 Condos - A Development Plan and Tentative Parcel Map submitted on March 8, and April 15, 2006, to subdivide for condominium purposes and develop 98 multi- family units on 8.9 acres. The project is located at the corner of Deer Hollow Way and Peach Tree Street. A DRC was held on April 13, 2006. Revisions were submitted on July 26, 2006. A second DRC letter was sent. Revisions were submitted on October 2, 2006 and staff is currently reviewing the revised plans. (PA06-0060, PA06-009S - SCHUMA) . Morning Ridge Condo Conversion - A Multi-Family Development Plan, Conditional Use Permit and Tentative Tract Map to convert a 200-unit apartment complex into ownership condominiums located at the southwest corner of Rancho California Road and Margarita Road. A DRC meeting was held on for August 24, 2006, and comments were sent on August 30, 2006. Staff is awaiting resubmittal. (PA06-0192 PA06-0193 - WEST) Miscellaneous . T -Mobile Monopine - An application for a Development Plan and Conditional Use Permit to construct a 70 foot mono pine within a 676 square foot enclosure, to be located at Orchard Christian Fellowship, 42101 Moraga Road. The application was submitted on January 26, 2006. A DRC meeting was held on March 9, 2006. The applicant resubmitted plans on May 1, 2006. Comments were mailed on May 15, 2006. Staff mailed a 60 Day No Response letter on October 2, 2006. (PA06-0026 - DAMKO) . General Kearny Reservoir Wireless Facility - A Conditional Use Permit to replace an existing non-disguised unmanned wireless monopole with a new 65-foot tall unmanned wireless mono pine with 12 antennas, four-foot diameter microwave dish and associated 336 square foot shelter and a back-up generator. The property is east of Placer Lafite and south of Chemin Coutet. The application was submitted on March 1,2005. A DRC meeting was held on April 21, 2005. A second meeting was held on January 24, 2006. Revised plans and environmental documents have been submitted, and staff is currently preparing an Initial Study. (PA05-0063 - WEST) . Roripaugh Ranch Specific Plan EIR Addendum - An EIR Addendum to the Certified Environmental Impact Report for the Roripaugh Ranch Specific Plan for offsite improvements including the Nicolas Road Bridge and related Channel Improvements to Santa Gertrudis Creek. The application was submitted on February 24, 2006. Staff reviewed and provided comments on May 5,2006. A revised document was submitted on July 14, 2006. Staff provided comments on August 21, 2006 and is awaiting resubmittal. (PA06-0051 - KITZEROW IPETERS) . Sprint Calloway Monopine - A Conditional Use Permit for a Sprint-Nextel wireless communication facility located at 40140 Winchester Road. The mono pine and equipment shelter is proposed to be constructed behind the Yanoschik Dental and Law building. The proposed mono pine would be approximately 47 feet in height to the top of antennas, and 50 feet overall, and the equipment shelter would be six feettall. The application was submitted on May 30,2006. Comments were mailed to the applicant on June 27, 2006. Staff does not support the proposed design. The applicant is revising the design and anticipates resubmitting mid-October. (PA06-0143 - KITZEROW IPETERS) . Cingular Monopine - A Conditional Use Permit application for the addition of a 65-foot mono pine and an equipment shelter to an existing antenna site located at 41520 Margarita Road. The project was submitted on August 15, 2006, and a DRC letter was sent on September 14, 2006. Staff is currently awaiting resubmittal. (PA06-0240 - SCHUMA) Small Business Assistance . Wine Sellars - An Administrative Development Plan for an outdoor dining area has been submitted forthis facility at the southeast corner of Sixth Street and Old Town Front Street in Old Town Temecula. Staff is waiting for a response from the owner and applicant to a comment letter that was sent to them outlining the requirements for the Public Works and Community Services Departments. (PA05-0269 - NOLAND) . Temecula Valley Goldsmith - Staff is working with the owner of this new business located in Old Town Temecula on a new sandblasted wood sign that will be funded by the Fayade Improvement Program. (PA06-0300 NOLAND) Special Event Permits . Summer Nights - This Redevelopment Department event occurred on Friday nights during the summer in Old Town Temecula. Vendors, entertainment and children's activities were featured. (PA06-0203 - NOLAND) . Fall Car Show & Old Town Cruise - This annual event took place on October 6 and 72006, in Old Town Temecula. Staff worked with the organizers of this event and will hold organizational meetings with all involved City departments to discuss issues. (PA06-0256- NOLAND) . 2006 Race for the Cure - The Susan G. Komen Breast Cancer Foundation has submitted an application for this major event scheduled for October 15, 2006, at the Promenade Mall. All City departments involved with this activity are meeting with the applicants at regularly scheduled organizational meetings. (PA06-0209 - NOLAND) . F.I.T. 5/10K Walk - This event, sponsored by the City of Temecula Community Services Department, will be held on Sunday, September 17, 2006, at the Temecula Community Recreation Center and adjoining streets. (PA06-0243-NOLAND) . Temecula Valley Film Festival- The 12'h annual Temecula Valley Film Festival took place at the Tower Plaza Movie Experience on September 13 to September 17, 2006, from 9:00 AM to 11 :00 PM. All involved City Departments are working with the organizers of this event. (PA06-0233 - NOLAND) Special Proiects & LonQ RanQe PlanninQ Activities The Division also commits work efforts toward larger scale and longer time frame projects for both private and public purposes. These activities can range from a relatively simple ordinance or environmental review to a new specific plan or a general plan amendment. Some of the major special projects and long range planning activities currently in progress are described in the paragraphs below: . Hillside Development Policy - The policies are being examined for integration into the draft- grading ordinance. Staff is working with GIS to analyze topography, soil types, environmental (habitat), and other constraints. (PAPP) . Procedures to Implement CEQA - Staff initiated project to develop local guidelines and procedure manual for processing CEQA documents, including the adoption of local exemptions. This is expected to include significance thresholds and procedures forthe City to contract for the preparation of environmental impact reports. (PAPP) . Project environmental reviews and permitting: .:. Diaz Road General Plan Level Improvements - Staff has prepared an Initial Study to determine the impacts of constructing ultimate improvements on Diaz Road. Staff is recommending that a Negative Declaration be prepared, the scheduling of this item for the City Council will be coordinated with Public Works Department. (EA07 - PAPP) .:. 1-15/ SR79 South Ultimate Interchange Project - Staff continues to provide comments to the Public Works Department on the issues that need to be addressed in the NEPA/CEQA document that is to be prepared for this project. (EA111 - WEST) . Mixed Use Development Standards and Traditional Neighborhood Design Criteria - Staff is in the process of developing Mixed Use Development Standards by reviewing existing projects and guidelines. This is expected to result in a recommended approach for areas of the City that are designated for Mixed Use development. (WEST) . Transit Oriented Development Demonstration Project - Staff is involved with the Southern California Association of Governments and the Western Riverside Council of Governments to study issues and opportunities associated with implementing transit-supportive development adjacent to the proposed Temecula Transit Center. (WEST) . Noise Ordinance - Staff has researched other jurisdictions noise ordinances and is in the process of developing a noise ordinance that incorporates the goals and objectives contained in the General Plan. The proposed ordinance is expected to contain provisions that would clearly define acceptable noise parameters and will permit Code Enforcement and/or the Temecula Police Department to Issue citations for noise violations. (PAPP) . Massage Ordinance - Staff is working with the Temecula Police Department to develop a new massage ordinance that is more restrictive than the existing ordinance and will be implemented and monitored directly by the Police Department. The proposed ordinance will require each employee to undergo several hundred hours of training, to wear identification at all times and includes more severe penalties for violators and business owners. (PAPP) . Nicolas Valley Rural Preservation Area - Staff is undergoing an opportunities and constraints analysis of the properties contained within the Nicolas Valley Rural Preservation Plan area to develop strategies to assist property owners with the construction of needed infrastructure and services. This area is lacking paved roadways, water transmission lines, wastewater collection, cable television, etc. Because of the relatively few properties in the area, assessment districts may be too costly for property owners. Staff is currently preparing maps and exhibits of the area and will work with a Council Subcommittee to develop strategies for bringing much needed services into the area. (PAPP) . WQMP Development Code Consistency - Staff is reviewing the Development Code to determine if any WQMP requirements should be added to the development standards. (WEST) . Liberty Quarry - Staff released a request for proposal (RFP) for air quality and transportation consulting services for review of the Liberty quarry EIR. (WEST) General Plan Amendments . Map 32780 - A General Plan amendment to amend the Land Use Designation from Very Low (VL) to Low Density (L) for a 22.45 acre parcel located on Walcott Lane north of La Serena (APN 957-170-032-033-034-035-036). This application was submitted on August 13,2005. A DRC was scheduled for November 15, 2005. A DRC was held and a DRC letter was mailed to the applicant on December 13, 2005. The status of this proposal is under review. (PA05-0283 - SCHUMA) ITEM NO. 47 Approvals City Attorney Director of Finance City Manager JM.('" ell !fr CITY OF TEMECULA AGENDA REPORT TO: City Manager/City Council FROM: Grant Yates, Assistant to the City Manager/Human Resources Director DATE: November 14, 2006 SUBJECT: Economic Development Department Monthly Report PREPARED BY: Gloria Wolnick, Marketing Coordinator RECOMMENDATION: Receive and file The following are the recent highlights for the Economic Development Department for the month of September 2006. ECONOMIC DEVELOPMENT Leads and Inquiries Staff continues to work on numerous industrial and retail expansions/relocations for local businesses in Temecula. On September 12'h staff met with a large retailer regarding upgrading their store and the retailer is interested in opening up a second store in the area. Staff continues to provide assistance to a local major employer looking to expand. During September staff met with a potential auto dealer representative. In September the Alliance received six inquiries. Three of the inquiries requested specific property information. The Alliance will continue to work on the ERISS and Business Facilities leads with follow-up calls and packets. During the month of September the Alliance website had over 4,300 visitors. Business Retention - Site Visits Diane Sessions of the EDC and staff attended a site visit with Victor Montano, owner of Destiny Machine, on September 12'h The company has been in Temecula 6 years and they are satisfied doing business here. They operate out of a 2,400 sq. ft. leased facility. They manufacture machine parts, pulleys for Mustang cars, variety of custom trophies and plaques as well as other items. Staff provided Mr. Montano with a business license list and contact names of event organizers and companies that may utilize his company. On September 11'h FFF Enterprises invited key city staff and several council members to tour their facility. This business site visit was very informative. On September 13'h staff made a presentation to James Buxton of Milgard Windows and some representatives of Milgard's Community Action Team. Staff presented a framed article published in The Californian that recognized their volunteer outreach program as well as a letter from the Mayor recognizing their contribution to the community. On September 19'h staff met with Chris Miehl, owner of Big Fogg Misting Systems. The company designs, manufactures and distributes air-misting systems, misting fans and heaters. The Business Press recently published an article on the company and their contracts, i.e. NFL and college teams, restaurants, wineries, etc. Staff presented the framed article and letter from Mayor Roberts congratulating Big Fogg on their press coverage and entrepreneurial endeavors. Staff also provided a business license list to Mr. Miehl for his marketing use. Events/Tours Mayor Pro Tem Washington, Council members Comerchero, Edwards and Naggar and staff attended the 2006 Southwest California Legislative Summit titled "California, Move It or Lose It" at South Coast Winery on September 14'h Attendees had the opportunity to hear from experts on topics including budget, transportation, utility infrastructure needs and initiatives on the upcoming November ballot. Council members and staff attended the Temecula Valley International Film Festival events in September. The feature Beautiful Dreamer was shown Opening Night. This film also took top honors as the best feature film and audience favorite feature film. In addition, a short film called West Bank Story, which is a comedy/musical about the Israeli/Palestinian conflict was screened. The Lifetime and Career Achievement Awards were presented to honorees including music icon Dionne Warwick, film composer John Ottman, actor Hector Elizondo and actor Dennis Haysbert. Staff provided some Temecula souvenirs to be included in welcome gift baskets for the honorees. Council members and staff attended the Temecula OnStage event on September 2,d in Old Town Temecula. The City is a major sponsor of this event. Three stages of entertainment provided a variety of entertainers including Aunt Kizzy'z Boyz, Joelle James, Michael Paulo, The Sounds of the Supremes and others. Media/Outreach Materials Staff wrote the City article for the October Chamber of Commerce Newsletter. The article was written on Former Mayor Patricia H. Birdsall and provided an overview of her accomplishments. The article was also published in the October issue of The Valley Business Journal. Staff continues to provide information to Economist John Husing for the updated Temecula Community Profile report. Staff provided photos and information to Cutting Edge Marketing for the Southwest California Business Resource Guide. The graphics for the City of Temecula Trade Show Booth is complete. The new design displays business, community and tourism visuals. City completed revisions to the Temecula Quick Facts Brochure. The brochure will be printed mid-October. Copies will be given to the Temecula Valley Chamber of Commerce, Southwest California Economic Alliance, Economic Development of Southwest California and will be distributed at trade shows including the upcoming Chamber Business Showcase in October. Meetings The Southwest California Economic Alliance Partners attended a meeting on September 1" with David Harlow of International Trade Consultants to discuss the status of the Foreign Trade Zone designation for Southwest California. Staff attended the EDC of Southwest California Business Relations Committee Meeting on September 7'h at California Bank & Trust. Company contact reports included: ZZZ Bail Bonds in Murrieta and BMW Management in Temecula. Business Relations Committee Awards for FY 2005-06 were given: Temecula: Jim O'Grady - Best Site Visit, Gloria Wolnick - Most Business Visits, Alice Sullivan - Best Site Visit; Murrieta: Ashley Jones - Most Business Visits; Lalli Guerriero - Most Business Visits and Joanna Quigley - Best Attendance. Staff announced the Temecula Valley International Film & Music Festival opening on September 17'h and reported that the Memorandum of Understanding on behalf of the Southwest California Economic Alliance would go to Temecula City Council on September 22,d Also, Dr. John Husing would be updating Temecula's Community Profile. Staff met a number of times regarding the Higher Education Center project and continued to work with the developer and his team throughout September. A meeting was held on September 5'h with the Campus Ad Hoc Committee Chuck Washington and Mike Naggar, staff and representatives with California Baptist University in Riverside. Cal Baptist has shown interest in the Temecula Higher Education Center. On September 11'h staff attended the Temecula Partners in Education (TPE)Committee Meeting. An update was provided on The Partners in Education newsletter. The Chamber offered to include as an insert in their newsletter. It was suggested to send it out as an e-mail newsletter to Chamber's distribution list. There was discussion on potential new committee members. Gary Wilson with TVUSD reported on funds that the District expects to receive next year for career technology, equipment & supplies. The TPE committee would be responsible for reviewing equipment and supplies that the District chooses to purchase with the money. The Superintendent will be invited to the next meeting to discuss her views and ideas for the committee. An update was provided on ROP and the need to create course sequences. Staff attended the Southwest California Economic Alliance Partners Meeting on September 13'h at Murrieta City Hall. The Alliance reported on the following: Alliance website & GIS will be launched in October: As a part of the site, the GIS site search tool offers more custom demographic, workforce and consumer expenditure reports all within a user entered radius. A complete listing of available properties is also accessible. In November, the Economic Alliance will have a full page advertorial on Southwest California in the Outlook LA special profile section of Forbes magazine, distributed to more than 66,000 subscribers in Southern California. Between September 19 and October 1, the Economic Alliance ran more than 50 - 30 second spots on XX Sports Radio during the Padres games broadcast in San Diego and Orange County. Southwest California also will be a Featured Destination on the Southwest Airlines Web site in March, 2007 which will give the region tremendous exposure nationwide. The Economic Alliance is actively seeking sponsors who are interested in partnering in the branding of Southwest California as a site for business growth while promoting their own business. There are numerous opportunities at different levels for sponsorship, some of which include a banner advertisement on the Alliance Web site. The partnership with Southwest Airlines (SWA) provides tickets, promotional items for trade show give-aways, and good advertising from Southwest. In turn, the Alliance will recognize SWA on its website, distribute the promotional items, and also identify SWA in some of the Alliance advertising. The 2006 Business Relocation and Expansion Prospect Survey was presented by ERISS representatives. ERISS Corporation conducted a survey of San Diego hi-tech companies to identify those companies who are likely to expand or relocate to Southwest California in the near future. ERISS has completed a telephone survey and contacted 177 employers. One company surveyed has already selected Temecula as their new home. One of the findings was that 70% of the respondents had vacationed/attended a special event in Southwest California. Wine Country, Golfing, Temecula Jazz, Lake Elsinore Storm, and Film Festival were the top responses, in that order. The Alliance will follow-up with the other prospects. The Alliance sponsored this project. Mayor Roberts and staff attended the EDC of Southwest California Board of Directors Meeting on September 21" at the University of Redlands. Updates were provided on: the EDC Quarterly Luncheon which will be held on September 28'h at Pechanga Resort and Casino. Marney Cox from SANDAG will give a presentation about 'Industry Clusters' in the Riverside and San Diego County regions. The EDC Strategic Planning Event is planned for early December. The City report included: approved design for parking structure and civic plaza, Abbott expansion, Pat Birdsall's Memorial, and upcoming City sponsored events - Fall Car Show on October 6 & 7 and Komen Race for the Cure on October 15. Staff attended the first meeting of Team Riverside County on Sept. 25'h at the Riverside County Administrative Building. Robin Zimpfer, Assistant County Executive Officer/EDA presented a power point presentation on Riverside County demographics and highlighted the Team Riverside County program. Riverside County EDA is looking to have other cities partner with them in their marketing efforts to attract business to the region. Kimberly Williams, of The Gas Company also provided a power point presentation which covered programs for business. ATTACHMENTS Temecula Valley Chamber of Commerce Activities Report Temecula Valley Convention & Visitors Bureau Activities Report Southwest California Economic Alliance Activities Report Economic Development Corporation of Southwest California Activities Report I~l~ TEMECULA VALLEY CHAMBER OF COMMERCE October 11, 2006 Shawn Nelson, City Manager City of Temecula 43200 Business Park Drive Temecula, CA 92590 Dear Shawn, Attached please find the September Monthly Activity Report as per our contract with the City of Temecula. This is the month of September at a glance: Business Inquiry Highlights: In the month of September, 5 businesses requested information on starting/relocating their business to Temecula. They received a business packet, which included a copy of the City of Temecula demographics, relocation, housing, rentals, maps, organizations, etc. . TYCC Chamber Board Highlights: The Chamber will host this years Temecula City Council Candidates Forum on Monday, October 23, 2006 at Temecula City Hall. Temecula Valley Convention and Visitors Bureau: Please see the attached September 2006 Monthly Report. Business Development Resource Committee: The Chamber Spotlight winner for October is Jennifer Johnson with PartyLite Gifts. The September Mystery Shopper winner was Sanctuary Salon. The Volunteer Businesses of the Month program has been reinstated and those chosen for October are LaVonna Lacy with ReMax Experience and Roselyn Hall with Hall's Plant Nursery. Mutual of Omaha will be giving a special presentation on Business Continuation at the September Business Success Forum. The topic of discussion for October will be on Marketing. The 2nd Annual Technology Forum & Expo will be held on Friday, November 3rd, 2006 from 8:00am-11 :OOam here at the Chamber. Expert speakers to present on special topics including managing your computer on a day- to-day basis, managing spam, and pop-ups, website design, and optimizing search engines. The event is free to attend. Membership & Marketing Committee: Thirty-five businesses joined the Chamber during the month of September and eighty-five members renewed their membership. Staff and Ambassadors attended nine Ribbon Cutting events. The MemberShip Networking Breakfast was held at Embassy Suites Hotel and was attended by seventy - two members. Thirteen members attended the September Power Networking Workshop. The new networking event the Networking Luncheon was held at Penfold's Cattleman's Restaurant in Old Town Temecula. The luncheon was attended by 51 members and guests, the chamber received several positive comments on the addition of a lunch time networking opportunity. Southwest California Legislative Council The Council met on September 18, 2006 and took positions on the following issue: Proposition 90 - Oppose 26790 Ynez Court. Ternecula, CA 92591 Phone: (951) 676-5090. Fax: (951) 694-0201 www,temecula,org . e-mail: info@temecula,org The SWCLC will be meeting with members of the RCTC staff to discuss a "Let's Get Moving" campaign to support and promote the RCTC planned projects that impact infrastructure throughout Riverside County. The goal is to promote RCTC infrastructure investments and their economic impacts on the Southwest California business community. Special Events Committee: The 40lh Anniversary Mixer was a great success! We had over 400 guests in attendance. The 15th Annual Autumn Fest Business Expo will take place on Wednesday, October 25, 2006 at Pechanga Resort & Casino from 5:30 p.m. to 8:30 p.m. There are currently 50 exhibitors signed up to date. The Awards Gala committee is planning the 2007 Awards Gala which will be held on Saturday, February 24, 2007 at Pechanga Resort & Casino. Tourism Highlights (Bulk brochure distributors) Activity Report: . 413 Visitor Guide requests were processed from the City of Temecula's Westway's advertising marketing piece. . 200 Winery Brochures and 100 Winery Maps were distributed to the Comfort Inn for hotel guests. . 120 Winery Brochures and 75 Winery Maps were distributed to Richard Dickenson with Teton International Rally for an RV rally staying in Temecula in March of 2007. . 50 Winery Brochures and 50 Winery Maps were distributed to Alysha Broadway with Coldwell Banker for potential clients. . 40 Winery Brochures and 40 Winery Maps were distributed to Tina Llamas with Lennar Communities for potential home buyers. . 30 Winery Brochures and 30 Winery Maps were distributed to Marcia Battin for a family reunion to be held at Pechanga Resort & Casino next year. . 10 Winery Brochures and 10 Winery Maps were distributed to Julie Baum with Tarbell Realtors for clients. . 10 Winery Brochures were distributed to Karena Wherry with Century 21 Award for potential clients. Activity Report: . Tourism calls for the month of September - 2,720 . Phone calls for the month of September- 3,814 . Walk-ins for the month of September - 2,863 . Mailings for the month of September - 568 . Web Page User Sessions for the month of September - 6,493 Also, attached are the meeting minutes for the Convention and Visitors Bureau, Southwest Legislative Council, Business Development Resource, Education, and Membership & Marketing committees. If you have any questions regarding this information, please call me at (951) 676-5090 or e-mail asullivantCiltemecula.ora. Thank you. cc: Mayor Ron Roberts Councilman Jeff Comerchero Shawn Nelson, City Manager Assistant City Manager Gloria Wolnick, Marketing Coordinator Mayor Pro Tem Chuck Washington Councilman Mike Naggar Councilwoman Maryann Edwards Gary Thornhill, Deputy City Manager TVCC Board of Directors Temecula Valley Chamber of Commerce Monthly Activity Report September 2006 Chamber Vis. Center Year- To-Date PHONE CALLS This Month This Month Total TOURISM Tourism Referrals 204 2,411 2,207 Calendar of Events 143 1,424 1,281 Special Events 163 1,813 1,650 General Information 2,210 11,884 9,674 TOTAL TOURISM CALLS 2,720 17,532 14,812 Relocation 103 1,005 902 Demographics 80 679 599 Chamber 495 4,628 4,133 Miscellaneous 416 4,230 3,814 TOTAL PHONE CALLS 3,814 10,542 9,448 WALK-INS Tourism 150 48 1,462 1,312 Calendar of Events 118 2 1,071 953 Special Events 100 1 1,106 1,006 General I nformation 1,773 84 10,365 8,592 Relocation 60 1 2,605 2,545 Demographics 35 526 491 Chamber 317 3,542 3,225 Miscellaneous 310 3,445 3,135 TOTAL WALK-INS 2,863 136 24,122 21,259 MAILINGS Tourism 541 7,901 7,360 Relocation 14 243 229 Demographics 13 204 191 TOTAL MAILINGS 568 8,348 7,780 E-MAIL Tourism 82 295 213 Relocation 13 187 174 Miscellaneous 168 1,260 1,092 TOTAL E-MAIL 263 1,742 1,479 WEB PAGE USER SESSIONS 6,493 50,786 44,293 GRAND TOTALS This Month Year- To-Date PHONE CALLS 3,814 10,542 WALK-INS 2,863 24,122 MAILINGS 568 8,348 E-MAIL 263 1,742 WEB PAGE USER SESSIONS 6,493 50,786 Annual Volume Comparisons Chamber Chamber Percentage September 2005 September 2006 PHONE CALLS TOURISM Tourism Referrals 217 204 -6% Calendar of Events 121 143 18% Special Events 135 163 21% General Information 738 2,210 199% TOTAL TOURISM CALLS 1,211 2,720 125% Relocation 126 103 -18% Demographics 97 80 -18% Chamber 487 495 2% Miscellaneous 362 416 15% TOTAL PHONE CALLS 2,283 3,814 67% WALK-INS Tourism 145 150 3% Calendar of Events 99 118 19% Special Events 98 100 2% General Information 619 1,773 186% Relocation 101 60 -41% Demographics 88 35 -60% Chamber 260 317 22% Miscellaneous 241 310 29% Visitor Center Walk-Ins 102 136 33% TOTAL WALK-INS 1,753 2,999 71% MAILINGS Tourism 1,302 541 -58% Relocation 19 14 -26% Demographics 17 13 -24% TOTAL MAILINGS 1,338 568 -58% E-MAIL Tourism 74 82 11% Relocation 75 13 -83% Miscellaneous 175 168 -4% TOTAL E-MAIL 324 263 -19% WEBSITE USER SESSIONS 6,008 6,493 8% . Chamber referrals reflect faxes, walk-ins and phone calls (13) 22 28 1,472 1,509 (23) (17) 8 54 1,531 5 19 2 1,154 (41) (53) 57 69 34 1,246 (761) (5) (4) (770) 8 (62) (7) (61) 485 II~!~I TEMECULA VALLEY CHAMBER Of COMMERCE Business Development Resource Committee MEETING MINUTES Wednesday, September 20th, @ 8:00am TVCC Conference Room Sponsored by Community little Book Committee Chair: Bob Hagel (present) Board liaison: Bill Seltzer (present) Co-Chair: Ginny Mulhern (absent) Members Present: Barak Berlin, laura Bruno, Carole Crocker, Michelle Deskin, Lisa Fuess, Chad Hensley, Robert Scutero Staff Present: Michelle Knowles Approval of Minutes A motion was made to approve the August 16, 2006 meeting minutes as written. The motion was seconded and carried. Member Recoanition Proaram Volunteer Business of the Month The Membership Committee honored LaVonna Lacy with ReMax Experience and Rosalyn Hall with Hall's Plant Nursery for the October Volunteer Business of the Month. Mvsterv Shopper Proaram The winner for the September Mystery Shopper was Sanctuary Salon. Chamber Spotliaht The winner for the October Chamber Spotlight was PartyLite Gifts. Business Success Forum The September forum on Business Continuation was very informational but attendees would have like to have received a more in-depth discussion on the items coved in the presentation. The committee viewed the revised speaker policy and will make some changes for the next meeting. An agreement form will also be created for the speaker to be fully aware of all guidelines. The next month's topic in October will be on marketing and will be presented by Paul Nolta with the SBDC. Resource Librarv The next Partners In Learning sub-committee will not meet again until marketing material is confirmed. Technoloav Expo Office Depot has been confirmed as the Title Sponsor. Bruno announced that Rick Risner with Elite Systems Integrators will be unable to speak and suggested the committee to invite another member to speak. Speakers for two remaining topics need to be confirmed and seven exhibitors are still needed. Board Update The 40'h Anniversary Mixer is tonight at 5:30pm at Community National Bank. The Ambassador Networking Breakfast is next Wednesday, September 27th, 2006 at 7:30am at the Embassy Suites Hotel-TV Wine Country. Committee Updates No report. Adiournment Thank you for attending! NEXT MEETING: Wednesday, October 18th, 2006 at 8:00am location: TVCC Conference Room Sponsored by Community little Book SOUTHWEST CALIFORNIA LEGISLATIVE COUNCIL www.SouthwestCaliforniaAdvocacy.biz Temecula Valley Chamber of Commerce Murrieta Chamber of Commerce Lake Elsinore Valley Chamber of Commerce SEPTEMBER 2006 SWCLC MEETING MINUTES Southwest California Legislative Council A Joint Committee of Temecula, Murrieta, and Lake Elsinore Chambers of Commerce Meeting Minutes Monday, September 18, 2006 Lake Elsinore Valley Chamber of Commerce 2006 Chair: Joan Sparkman (Present) 2005 Chair: Gene Wunderlich (Present) 2007 Chair: Dennis Frank (Absent) Chamber Advocacy: Shaun Lumachi (Present) Directors Present: Tom Kenney, Karen Wikert, Amber Wiens, Scott Crane, Greg Morrison, Joan Sparkman, Isaac Lizarraga, Directors Absent: Roger Ziemer, Billie Blair, Timothy Kuzelka, Craig Schleuniger, Glen Daigle, Carl Johnson, Dennis Frank Members Present: Staff: Kim Cousins & Matt Norkin - Lake Elsinore; Alice SulIivan & Laura Turnbow - Temecula; Rex Oliver - Murrieta Joan called meeting to order at 12:12 p.m. New Business: 1. Approval of 08/2112006 Minutes A motion was made to approve the August 21,2006 meeting minutes as written. The motion was seconded, and carried. Established Positions: o Support Proposition IA: Transportation Loop Hole o Oppose: Proposition 87: Oil Severance Tax Presentation Shaun Lumachi Government Affairs Director Southwest California Legislative Council Aaron Hake Staff Analyst- Government relations Riveside County Transportation Commission 1 Background 1. SWCLC staff and RCTC staff have met to discuss a" Let's Get Moving" campaign to support and promote the RCTC planned projects that impact infrasttucture throughout Riverside County including Southwest California. 2. The Goal of the SWCLC's campaign is to promote RCTC infrasttucture investments and their economic impacts with the Southwest California business community. 3. The campaign will be web-based via the SWCLC's Web site www.southwestCaliforniaAdvocacv.Bizand via the three chambers (Temecula, Murrieta, and Lake Elsinore Valley) newsletters and other communication means. 4. Presentation on Proposition 90 made by Shaun. 5. Proposition 90: Let's Get Moving- Explanation by Shaun and Aaron. Recommended position: Oppose. Motion to Oppose made by Greg Morrison. Motion was seconded by gene Wunderlich and carried. Motion Opposed unanimously. 6. Meeting Adjourn- There being no further discussion, the meeting was adjourned at 1:01 p.m. Motion to adjourn was made by Tom Keeney. Motion was seconded by Greg Morrison and carried. Motion to adjourn passed unanimously. 2 EDUCATION COMMITTEE MEETING MINUTES Temecula Valley Chamber of Commerce Conference Room Sponsored by Community Little Book Thursday, September 7, 2006 9:30 a.m. Chairperson: Members Present: Board Liaison: Staff Present: Lynn Laing (Not Present) Co-Chair: Dr. Darleana McHenry (Not Present) Tracy Hunter and Donna Ramirez, Ben Cherry, Michelle Deskin Martha Minkler (Present) Alice Sullivan, Jodi Wenzel, Laura Turnbow Approval of Minutes A motion was made to approve the June 8, 2006 minutes. The motion was seconded, which carried. Student of the Year The Student of the Year Luncheon will be held on Monday, September 25, 2006 at 12:00 p.m. at Sizzler Restaurant. Minkler encouraged those who have not had the opportunity to attend this event to attend. It is a positive affirmation of the level of student achievement within the area. School and Colleges Update TVUSD - Sullivan stated that she will be meeting with the new Superintendent of Schools, Carol Leichty to discuss future partnerships. Ramirez stated that TVUSD has taken over the program for severely handicapped students. MSJC - No Report UCR - No Report CSUSM - Cherry reported that they have had a 17% increase in the number of students. They anticipate an increase of 1,000 students per year in the future. They have recently added a nursing program and over 1,000 students applied for the 48 openings. Their student housing, which can accommodate 500 students is at capacity. The majority of students select Business as their major. University of Redlands - No Report. City Update - The development of the Higher Education Center is moving forward. Brochures will be available soon which will list the various programs and educational partners. Board Update . 2006 Legislative Summit will take place on September 14,2006 at 7:30 a.m. at South Coast Winery Resort & Spa. Panelists will include Wally Baker, Los Angeles EDC; Assemblymember John Benoit; Joseph Desmond, Undersecretary of Energy Resources; Joe Grindstaff, Director of California Bay-Delta Authority; Anthony Miranda, Pechanga Development Corporation. The Membership Committee will have a booth at the 4th of July Extravaganza at the Ronald Regan Sports Park. . 2006 Leadership Academy has been postponed due to low participation. It is anticipated that this program will be rescheduled for March or April of 2006. . City Council Candidates' Forum - A forum has been scheduled for Monday, October 23,2006 at 6:00 p.m. at City Hall. The event will be televised on Channel 3. Committee Focus Minkler requested input from committee members as to what areas or programs they would like to focus on in the future. Minkler stated that the City is developing a Youth Master Plan and that it might be possible for this committee to participate in this process. Staffwill invite Councilmember Chuck Washington to the December 14th meeting to discuss this item. Deskin suggested promoting programs within the school where students mentor special needs students. Another suggestion is to solicit articles that highlight accomplishments of students that are participating in worthwhile programs. Meeting adjourned. Next Meeting is set on Thursday, December 14, 2006 at 9:30 a.m. Thank You! Ill"'4! TEMECULA VALLEY 1Ill..~ CHAMBER OF COMMERCE Building strong business and community relationships Membership and Marketing Meeting Minutes Wednesday, Sept, 13'h, 2006 - 8:00a.m. -9:00a.m. Chamber Conference Room Sponsored by Community Little Book Celebrating 40 Years of Service Mission Statement: Develop programs to maintain and build a membership commensurate with the growth of the Temecula business community and simultaneous growth of the Chamber. Serve as goodwill representative and strive to enhance the value of membership encouraging ongoing dialogue between members. Committee Chair: Dan Brunell Co-Chair: Jann Gentry Board Liaisons: Janet Beck Tom Paradis Committee Present: Barak Berlin, Dr. Teresa Kozycarz, Carole Crocker, Jann Gentry, Lee McCollum, Adam Ruiz, Tony Bernardino, Scott Crane, Roy San Jose, Angie D'Anna, LaVonna Lacy, Lisa Skinner, R.J. Hagel, Dan Brunell, Tom McKenzie. Staff Present: Jodi Wenzel, Kimberly Freize-Uhler, Alice Sullivan Minutes Committee Co-Chair Dan Brunell called the meeting to order at 8:00a.m. Self-introductions of the committee followed. The minutes of the previous meeting were reviewed and motioned for approval by Adam Ruiz and seconded by Carole Crocker, which carried. Miscellaneous Open Discussion by Committee: The Women in Business taskforce was briefly discussed. Notification will be sent out by staff when the first taskforce meeting is to take place. Katherine Bailey agreed to be the Chairman of the Women's Taskforce. Sub-Committee Reports Retention: By Harry Shank No report given Welcome: By Dr. Kozycarz: Thank you to those who are assisting in making the calls. Dr. Kozycarz reported that everything was going fine with the retention calls, nothing new to report at this time. Networkinq Breakfast & Networkinq Luncheon: By Jack Harlan Harlan reported the committee was beginning to book spotlight and coffee sponsors for 2007. Harlan reported he was able to adjourn the breakfast at 9:20am and the attendees stayed and continued their networking. Discussed moving the Networking Breakfast to another location. Crocker made a motion to look for another location was carried unanimously to go forward with inquiring about the availability of B.J.'s Restaurant for the event. It was reported that staff found a location for the Networking luncheon that will fit in both the room requirements and budget of the event. Tony Berardino agreed to sponsor a portion of the cost for the event. Marketinq: By Carole Crocker Crocker reported the marketing taskforces next meeting is scheduled for the 17'" of August. Crocker also reported the taskforce is working with a graphic artist on new ideas encompassing the chambers' role in the community. Power Networkinq Workshop: By Staff: The workshop attendance is maintaining. Staff has been promoting the workshop to new members as a way to begin to network within the chamber membership Mixer: By Staff: A Flyer for the Business expo on October 25th was passed around. It was announced the November 2006 Mixer will be hosted by Temecula Valley Bank. It was confirmed the mixer events are still a popular event for the member to network their business. 40'" Anniversary Mixer was discussed. Ambassador Proqram: By Jann Gentry-Sub Committee Chair: Gentry thanked the Ambassadors currently in the program and announced the next Ambassador Training was scheduled for Wednesday October 4'"' Member Appreciation Niqht: By Ginny Mulhern The next meeting for the 2006 event will be held on October 5th @ 9:00am at the Temecula Chamber. Staff to send out RFP's to Chamber members for Catering and Entertainment. At that time there was nothing additional to report. City of Temecula Report: By Alice Sullivan City Council, Youth task force study was approved to be done and hire a company to create a master plan. Hospital Report: Crane Announced that Hospital will be approved after the first of next year and construction to begin 2 to 3 months after approval. It was mentioned that it would take 18 months to be completed. Board Report: By Chamber Staff Staff reported on the upcoming Leadership Academy and Legislative Summit events. Open Discussion: The dates and times of the upcoming Temecula Valley Chamber of Commerce Events were reviewed. Meeting adjourned: 8:55am Next Meeting Date: Wednesday, November 8th, 2006 Chamber Boardroom Sponsored By: Community Little Book I~L~ Monday, October 09, 2006 Page 1 Temecula Valley Chamber of Commerce Business Referral We thought you should know. The chamber was pleased to refer your business today. We value your membership and appreciate your continual support of our programs. .. Tourism Activity Report September 2006 TVCVB Walk-Ins TVCVB Phone Calls Calendar or ""'." General Info Total Walk-Ins: 2,276 Total Phone Calls: 2,720 TVCV:i3 Web site. f\ctivity April 2006 - September 2006 Website Visitors Per Month Hits Per Month 4000tl0 35??oo 3000tl0 25??oo 2000tl0 15??oo lOOOtlO 5??oo o 'i! ~ ~ ~ .. - -:- ... - ~ ~ - ~ .. - - ~ - ~ ,..., '""' '""'""" ~ ~ ! .8 .. ~ J TVCVB Online Booking Report- YTD May 2005 - September 2006 T........'. Cr..k 'n.. 106 2. 60 4. 1 )11II7 . 32 )13 I . . J.24 32 :!iIO"lh c.... Winery ".daway R.m.~. Inn P..hanao Pal. C..,... Holiday Inn lE.pr... H....pton Inn. Suit.. \ ~"t.nd.d S.ay Amo.I.. Emlo...,.. Su,t.. Com'ort In.. To",..ul. C....'.r. Inn Mu'rl.'. c..tI. Cr.ok Ill... W.....n ".llbr..k e... W..'o,n T........t. o 2. 17 4. 6. 6. ,.. 12. Room Nights Booked per Hote. TVCVB Online Booking Revenue May 2005 - September 2006 Revenue By Month: ~ ~ Total YTD Revenue: $75,664 111I20061 i me SEPTEMBER 2006 HIGHLIGHTS ~I VCVB has hired Dean Run- three Indian-owned casinos 10- ley for 2000 through 2005, in- Associates to conduct an cated in and near Temecula c1uding detailed city and visi- mic Impact study for the Valley); Visitor Attendance tor type impact figures for cula Valley. The Scope of Analysis (describe attendance 2005. Focus will include the for the Study will consist of trends and overall visitor- city of Temecula and the sur- a r i n 9 Met hod 0 log y oriented activity for selected rounding area, with a com pari- re the basic data man- area attractions, identify and son to Riverside County. It will ent and economic mod- collect visitor information from also include measurements of . structure for use in our re- wineries, golf courses, casino, travel spending, earnings, and ); Collect and Analyze plus other sources as appropri- employment generated by I and Economic Data ate. The information will also traveler spending, as well as cting a variety of other serve as a validity check for the the resulting municipal, county from local, state and fed- transient occupancy and sales and state tax revenue). The agencies and other tax-based increases/ decreases study should be complete by es. including but not lim- measured in terms of economic January 31, 2007 and will be to transient lodging tax re- impacts); Direct Economic Im- instrumental in realizing the full s, employment and earn- pacts (explain the significance economic impact of tourism- data, and retail sales tax of travel and tourism in the re- related spending and visitation pts. Also included will be gion by measuring the impact and help to determine future 'ng lodging data from the of travel in the Temecula Val- tourism trends. We invite YOll to vjsi~ Temccultl! r""e<lllalfOflntlh<,"'a1~I<lOIicm.;nllullii.io- InSoo.lhOnlOllrom!a.from.lndlOnYllbp'" mwlono"_.,,,,,,,Ikl<k\I...ncl1n'" """.o>o<l,SeI.""o",.ln=nllnr.J""'''''''' m""OlUdtv.tll<.tn<yon.mtcllJobl\dlonol ...mOl!. .___.__ _n' iIldf'IU~.....T.c-n..lW'so.:.;liOmc.iiioniia-" ""1lIl"\VInIC<lUn"y,,,IIIlA,,anlWlDlllq_., _,llOUrit>fr,ldlulComlOiCuln.I.Clillomb'l" We.,....~...;;,io'l' l.t.~ ",!. InCi<.itbi~<ul.lli<. t~~:~,_..~~~n...~......~ .. 1\I<_.....t.~hO\OY."....0i.l. ;c.nt"titnib;~y''''''''''-WlIli'nieT';''ocU''io;u..r to...nUon&'lllItonBuroauforvllUJVll'll>"" 1.&88.i6~i"2-: -'::: .."",I<l!'""'ItCVt>'oo'" . . . . . . . will be launching a mail campaign, . g 9,000 scenic post- to the Meetings t, the Film lndustty J'l'aveVTrade Writers 'a" call to action" to bur top-tier, premier , non. Ughts...Camera... Temecula! W,"IVl"J'.utoK..tou'SOulh<rn.Q1Iro"".~ fIOSlkopt><<r<l_tlIO'TI:r<<aJIAVAUW." T...KIlI.Io.....rl..mo..l1i......Ol..muolll.. InSou1homCalir.m..... r_ 1n~I...Wl1p tomlsSl.."""",...rro<ll ",.-n"",hOlOUO>Iro>ds5clU<IlIont,lro.. ..Uroo,d..""to_rndlv.ll>o.l<Iryof.T<IlIKOl1 l.ridJalI<I....~od. Didl""'_T.mt<ula....Soo.lhirnc.:;lh"'...~ I'foml"\\1..eo.."Y..d'h.waenl.<Iian <molniCaslnolnCal,ronliz?lt'SlnI.l w.lim~ri>"io..pu\onc.:T.:n..a.wC.......... W....uld""'.I.."'...}....aro1lnd. Conl.<t'Kllim<r1VMaulSwl<ll.lboT<mo<ulI.V...." C_oIIoDIWlIIn"Bu".uro,l""'VlPToor, HlU.lGHBSl, 1\'lrW.l.rno<IiIa<'.1I.COlll Tio'''''Dl..y>'~c.''''llOn indVl'''.''Bu",u 26100_,(..." To..t<Ul.,h92S91 ".... .,. . TBMIlCULA ".'.'" :v~~..~ ~_~ll....... --""-""'-,~ . 2-K. Adams attended Temecula OnStage. 6-Staff performed site visit at Falkner Winery's innacle Restaurant. . ll-C. Penny attended San Diego Visitor Center .ark Meeting in San Diego. 13 & 14-Staff attended Temecula Valley Int'l '& Music Festival Opening Night, hosted a screen- 'nd sponsored a mixer. : 15-K. Adams attended Old Town Temecula Busi- }:Assn. Meeting to promote event partnerships. . . . . . . . . . ~- .'::;" . -"~ -.. 1<,..oJI,_eu"".nllo. Oodl'l,I"-rsau",., 26700Yne.Coilrl Tom.<ulo.COVlIBI . . . . . . . . . ==> Sept. 16 & 18~Staff toured Japanese Disney Film Crew throughout Temecuia Valley. ==> Sept. 20- TVCVB sent welcome letter to at- tendees of SCACE event at Pechanga. ==> Sept. 21 & 22-K. Adams travel-researched San Luis Obispo Community Night. ==> Sept. 28-Staff gave site inspection to repre- sentatives for Pow Wow 2007. ==> Sept. 28-C. Penny attended Temecula Sister City Assn. Receptionat Miramonte Winery. I ityJ CALIFORNIA TOURISM NEWS ~ Marketing Intelligence Snapshot o California hosted 335.4 million travelers in 2005, a 6.7% increase from visitor volume in 2 Leisure travel to positively affected total travel volume, growing 7.1 % from 228 million lei travelers in 2004 to 244.3 million in 2005. o Business travel in California also increased for the second straight year, with an increase from 86.3 million leisure visitors in 2004 to 91.1 million in 2005. California resident travel the State continued to grow in 2005, increasing from 265.7 million travelers in 2004 to 27 million in 2005. The rise in resident travel was led primarily by the leisure travel segment increased 5.7% compared to a slightly smaller increase in resident business travel of 4.1 0 o Non-resident visitation increased in California in 2005, growing 14.3% to 55.5 million trav' over 2004. . o Total travel at the national level grew 4.1 % reaching 3 billion visitors in 2005. Because of growth of total travel at the national level and rise of travel volume in California, the State' share of the U.S. travel market, increasing from 10.8% in 2004 to 11.1 % in 2005. Californ maintained it's ranking as the top destination in the U.S. in terms of person-stays market ... o Traveler spending in California dropped slightly from 2004 to 2005. Average per personc! spending in 2004 by the California traveler was $124 a day versus $121.10 a day in 200 .. drop was caused by a reduction in spending by both leisure and business travelers. Resi spent the same as in 2004, but non-residents spent about $10 less per day on average t.. did in 2004. . o The primary demographics of travelers to California help to understand the profile of curr potential visitors. The median age of a traveler to California was 46 years with a median household income of $66,000. The large majority of visitors were married (68%) and em a managerial or professional occupation (33%). .' o The primary purpose visitors came to California was for leisure (73%). Within the leisur~t segment, most visitors traveled to California to visit friends or relatives (24%).'; o The average party size of travelers to California in 2005 was 2.1 persons, which has rem 0 stable over the past four years. In the leisure travel segment, the average party size was persons in 2005, a slight decrease from 2004. The business travel segment had an aver .'. size of 1.7 persons, a slight increase from 2004'0" o The primary mode of transportation for visitors to Califomia was the auto, 80%, a slighfi from 79% in 2004. There was a slight increase in Van/Small Truck travel to California, in from 10% in 2004 to 12% in 2005. Most visitors to the State, 4%, stayed in paid accolTl.: Among the paid accommodations segment, 54% stayed in hotel/motels, a 2 percentag . increase over 2004. o The average distance traveled by visitors to California was 328 miles one way in 2005,.a decrease from 338 miles in 2004. The top origin state for travelers in California was the... itself with residents comprising 84% of California visitors. Arizona and Nevada followei:f' and 2.2% of California visitors, respectively. . . . . . . . . . . . . . . . . II Monthly Activity & Stats II Walk Ins...............................................2,276 Room Night Bookings.............; Phone Calls..........................................2,720 Media Inquires......................) 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TO: Sarah Mundy Deputy Director Riverside County EDA Lori Moss City Manager City of Murrieta FROM: Stevie Field Executive Director DATE: October 12, 2006 SUBJECT: Jim O'Grady Assistant City Manager City of T emecula Cathy Borozo Analyst City of Lake Elsinore SOUTHWEST CALIFORNIA MONTHLY MARKETING UPDATE Dear Partners: Please consider this an update on the marketing activities for the Alliance as required in the Southwest California Marketing for Business Attraction Agreement. Leads During September six contacts were made to our office for information and three have requested specific property information. As I mentioned in the October Alliance meeting, starting next month I will provide all Partners wilh a lead report. This report will outline lead source, project and status. I continue to work on the Eriss and Business Facilities leads with follow-up phone calls and packets. GISlWeb-site The web-site is near the end of its re-construction. We are in the process of making the site more information driven, and therefore going through each section to update the information, making it more comprehensive. The new web-site will be emailed to each Partner late next week for review and testing. I am pleased to report that during the month of September, we had over 4,300 visitors. This is approximately 1 ,000 more visitors than in August. We have already topped our 2005 visitor total and we still have 2 12 months left! Cutting Edge Marketing and I continue to work with GIS Planning Inc. so as to update our GIS application. We are working on a new look and a few new bells and whistles. I have received several phone calls this past month from brokers who needed to update their password or wanted to sign up so they can add their properties. Alliance Plannina Meetina Re-caD Before the October Alliance meeting I took a moment to review the Alliance planning meeting that the Supervisor hosted back in June. I am very pleased to announce that all projects that were identified on that list are completed or near completion! Once all projects have hit completion(expected mid- Nov), I would like to host another planning meeting so that we can discuss how to define our regions specific niche's. This will help the Alliance better define our industry targets and be more strategic with our marketing campaign. SDonsorshiD ODDortunitv Letter I have completed the sponsorship opportunity letter and will be em ailing it to you early next week for comment. This letter will outline various sponsorship opportunities available such as Broker Breakfasts, flash drives, and web-site banners to name a few. I have limited the amount of sponsorships per category which will add to the benefit of each opportunity. As discussed in the Alliance meeting, we will entertain sponsorship proposals from companies and organizations that meet the Alliance goals and stay within our overall mission. Job Database Postcards I am currently reviewing the list with over 11,000 businesses located within our region so that we can mail out our job database postcards. These postcards provide step-by-step instructions on how to upload current job opportunities onto the Alliance web-site. I will only be including businesses in the fields in which the Alliance is working to attract, (manufacluring, R & D, professional etc). The web- site also provides a link to RIVCOJOS.COM and EDD. These postcards and the database will be sent to a mailing house no later than Oct. 20th and should be received by businesses no later than Nov. 1". We are timing it in such a way that when business log onto the web-site, they will see the new updated version. Approximately 5,000 postcards will be mailed out to businesses located within our region. I will also provide an em ailed version to the three Chambers for distribution. San DieQo Event As a result of our relationship with the San Diego Daily Transcript, we are working towards a partnership on a San Diego Regional event. I have a meeting scheduled with the Transcript on Oct. 18th to discuss their assistance with inviting San Diego brokers, attorneys and finance managers to a luncheon at which the Alliance will present a PowerPoint presentation highlighting regional information, including industrial/commercial/office data as well as housing statistics and costs. The Alliance will have a distinguished panel of speakers to answer regional questions about doing business in Southwest California. We are looking at late January, however, date, venue and cost have yet to be determined. Resource Guide I have finished updating the Business Resource Guide. Please take time to review your respective section and make any changes/updates/deletions on contact information, demographics and overall business services and city description. There is no particular format as each city and the County is unique. Once received, the information will be updated as a whole and then uploaded onto the web- site. Padres Radio SDots For all of you sports fans, hopefully you were able to catch the Alliance radio commercials on XX1 090 AM. We aired 58 spots during Padre games and the AM financial station. We got a great deal and the Padres continue to be a big draw. The commercial aired in LA, SD and Orange Counties. Southwest Airlines The contract beIween the Alliance and Southwest Airlines should arrive in the office sometime next week. I have outlined the contract benefits and expectations for last year and this year below: '05 - '06 Southwest Airlines Provided Seven tickets ($400 value each) Alliance provided Logo and link on web-site '06 - '07 Southwest Airlines to Provide o 30 tickets ($400 value each) o Assistance with editorial in Spirit Magazine o Assistance with Southwest Airlines President at Southwest California event o Three quotes to be used at Alliance discretion o National press release announcing partnership issued by Southwest Airlines (first partnership of its kind) o Peanuts (to be included in room drop and gift baskets. Quantily to be determined) o Giveaway items (such as key-chains, pens etc for gift baskets & events) Economic Alliance to provide o Mention of partnership in Forbes, Inc. 2007 o Banner and link on web-site for one year o Full story in Soaring Dimensions supplement in the San Diego Daily Transcript o Logo on pre-promotion mailer for CoreNet Global trade show/conference in Spring 2007 o Trade show promotion at CoreNet Global in Spring 2007 (room drop or lIcket giveaway) o Year in Review binder and report to include all projects the SWCEA used the Southwest Airlines logo, quotes and advertising of SW ABiz o Regular web-site statistics for tracking ForeiQn Trade ZonelFTZI The deadline to provide information to David has passed and it is my understanding that the application has been submitted. David Harlow, consultant for this project stated that formal designation should be late Summer of '07. If you need additional information on the process or benefits of the FTZ, please contact me. MOU'slBudaet I am pleased to report that the MOU with the cities of Temecula and Lake Elsinore were unanimously approved by councils. The agreement with EDA is also complete and will be presented to the EDC Board for signature on Oct 19'h. Staff Assistance Riverside County EDA - Aviation Division has agreed to pay 1/3 cost for an administrative assistant. This assistant will work with for the Alliance, EDC and EDA Aviation. Diane, Vicki (Aviation staff) and I met on Oct 12'h to review staff requirements and resumes received to date. We are scheduling interviews for Oct 26'h and hope to bring the new staff person on board as soon as possible. Trade shows On behalf of the Alliance, I attended the following conference and/or trade shows in September: International Economic Development Council (IEDC), China Forum Industrial Asset Management Council (IAMC), Sept. 16-20 Sept. 24-26 Sept. 30-0ct 4 New York, NY Chicago, IL Williamsburg, VA In November, I will be attending: Corporate Office & Real Estate Network (CoreNet) Nov11-15 Orlando, FL If you need any additional information or have any questions, please contact me at (951) 696.1578 or my cell at (951) 236.2036. Sincerely, Stevie Field Executive Director Copy: Robert Moran Gloria Wolnick Simone McFarland Kim Cousins Verne Lauritzen October 16, 2006 Gloria Wolnick City of Temecula PO Box 9033 Temecula, CA 92589 RE: EDC Activity Summary - September 2006 Business and Workforce Development Staff responded to the following 7 business/workforce development request in September 2006: Date Lead Source Reouest Action Taken 09/05/06 Email Client seeking civilian position in Assistance is ongoing. transition from active military duty 09/07/06 Phone Client requested contact for SCE Contacted Viet Tran of SCE to assist client with regarding site expansion. request. 09/08/06 Phone Client in French Valley seeking Contacted Gary George at Verizon to assist. assistance with Verizon fiber antics issue. 09/19/06 Phone Client seeking additional Provided client with requested contact information on assistance with fmding site for possible site. comedy club. 09/21/06 Phone Client requested "Fast Track" Contacted the County Planning Department on behalf of assistance with commercial client and referred client to Stevie Field for additional project in French Valley. assistance. 09/22/06 In Person Client is a new resident seeking Referred client to possible employers. employment in corporate coaching. 09/22/06 Phone Client seeking site selection Provided client with commercial broker contacts and assistance to open up a jazz club contacts at City of Murrieta. Client continues to search in Murrieta. for oossible site. Assistance is on~oin~. Community Outreach Staff and/or EDC directors attended the following meetings/events to promote or support econornic development/community outreach: . Murrieta Temecula Group Meeting (9/1) . Temecula Partners in Education Meeting (9/11) . Riverside County Board of Supervisors Meeting (9/12) . EDC Business Retention Visit with Destiny Machines, Temecula (9/12) . Southwest California Economic Alliance Partner Meeting (9/13) . Interregional Partnership Technical Working Group Meeting (9/14) . Southwest California Legislative Summit (9/14) . EDC Quarterly Luncheon (9/28) Gloria Wolnick City of Temecula EDC Activity Summary - September 2006 Page 2 of2 Business Retention . Business Relations Committee Meeting (917) - Minutes are attached. AdministrationlOn!anization . EDC Board of Directors Meeting (9/21) - Minutes are attached. . Administration - Staff managed the daily operations of the EDC office; mailed EDC membership renewal letters; coordinated EDC luncheon; began recruitment for new EDC staff position; began coordination for Strategic Planning Event; and emailed the following business development/communityamlOuncements: )> EDC Quarterly Lunch Invitation - September 28, 2006 )> EDC Workshop "Franchising 101" - September 30, 2006 )> Komen Race for the Cure )> Press release for Southern California Gas Cornpany This concludes the activity summary for Septernber 2006. Should you have questions or need further detail, please call me at 951.677 .1862. Diane Sessions Executive Director Exhibit 7.1 ECONOMIC DEVELOPMENT CORPORATION OF SOUTHWEST CALIFORNIA BOARD OF DIRECTORS GENERAL MEETING MINUTES Thursday, September 21, 2006 - 9:00 a.m. University of Redlands 27270 Madison Ave., Suite 217, Temecula, CA 92590 DRAFT DRAFT BOARD MEMBERS MEMBERS AND GUESTS Ken Carlisle, Abbott Vascular Scott Crane, Southwest Healthcare System Gary George, Verizon Stan Harter, Reid & Hellyer Keith Johnson, Mission Oaks National Bank O.B. Johnson, Continental Realty Doug McAllister, City of Murrieta Dr. Jeanne McClellan, University of Redlands Melanie Nieman, Eastern Municipal Water District Jim O'Grady, City of Temecula . Rex Oliver, Murrieta Chamber of Commerce David Phares, D.L. Phares & Associates Greg Prudhomme, Kuebler, Prudhomme & Associates Ron Roberts, City of Temecula Greg Smith, Rancho Physical Therapy Jakki-Lee Anderson, Keeton Consttuction Dr. Billie Blair, Leading and Learning Inc. Sherrie Jared, Riverside County EDA Simone McFarland, City of Murrieta EDC STAFF Chary1e Minet Diane Sessions CALL TO ORDER . Board Vice President, Keith Johnson, called the meeting to order at 9:07 a.m. He welcomed members and guests, and congratulated O.E. Johnson as the newly appointed director-at-Iarge. Diane Sessions handed out EDC member packets to those who recently renewed their membership. APPROVE AGENDA . Motion made by Dr. Jeanne McClellan, seconded by Ron Roberts and carried unanimously to approve the agenda as presented. MINUTES . The Board reviewed the minutes of the August 17, 2006 Board of Directors Meeting. Motion made by Gary George, seconded by Doug McAllister and carried unanimously to approve the minutes as presented. FINANCIAL REPORT . August 31, 2006 Financial Report: The Board reviewed the August 31, 2006 Financial Report that showed total monthly revenues of$21,641, total expenses of $9,424, and total cash in bank of$85,043. Motion made by Greg Prudhomme, seconded byJim O'Grady and carried unanimously to approve the August 31, 2006 Financial Report as presented. NEW BUSINESS . EDC Quarterly Lunch Update: The EDC Quarterly Luncheon would be held on September 28 at Pechanga Resort & Casino. Current reservations were at 55 attendees. Marney Cox, Chief Economist for SANDAG, was giving a presentation on how Riverside and San Diego counties could collaborate on cluster industries of both regions. . Economic Development Corporation of Southwest California Board of Directors Meeting -September 21,2006 Minutes - Page 2 of 3 . EDC Strategic Planning Event Update: Temecula Creek Inn was reserved for the November 10, 2006 Strategic Planning Event. The event would be a half-day study session and invitees would include selected business leaders in the region. Invitation letters were scheduled for mailing by next week. . EDC Update: Diane Sessions reported that Stevie Field would need a corporate credit card. . She would work with Frank Casciari at California Bank and Trust. A resolution by the Board would be drafted for approval. Ms. Sessions also reported that two county employees currently located at the French Valley offices would be moving to another location. One of those employees was the receptionist for the EDC/EDA/Economic Alliance offices. It had been proposed to Riverside County, Aviation and the Alliance to split the cost of a new staff member for receptionist/clerical duties. All parties agreed to share cost at approximately $9,400 on this annual salary. The reception position will pay approximately $11 per hour with no benefits. Motion was made by David Phares, seconded by Doug McAllister and carried unanimously to approve a cost-sharing expense with Riverside County EDAlAviation and Southwest California Economic Alliance of approximately $9,400 per year for employing a new EDC staff member to act as receptionist/office clerk. · Ratify Funding Agreement between City of Murrieta and the EDC: Motion made by Dr. Jeanne McClellan, seconded by Greg Prudhomme and carried to ratifY the funding agreement between the City of Murrieta and the EDC as Administrator of the Southwest California Economic Alliance. Doug McAllister, Ron Roberts and Jim O'Grady abstained. . Ratify Funding Agreement between City of Temecula and the EDC: Motion made by Gary George, seconded by Ken Carlisle and carried to ratifY the funding agreement between the City of Temecula and the EDC as Administrator of the Southwest California Economic Alliance. Doug McAllister, Ron Roberts and Jim O'Grady abstained. . Approve Letter of Support for Appointment to Governor's Economic Development Committee: Motion made by David Phares, seconded by Doug McAllister and carried unanimously to approve a letter of support for Stevie Field's application for a position on the Governor's Economic Development Committee. CONTINUING BUSINESS . Utilities Updates: Gas - No report. Telecommunications - Gary George reported that Verizon received notification that the cable television franchising bill should be signed by the Governor on September 29. Water - Melanie Nieman reported that EMWD would like the communities to cut back on water now that it is fall. They need a community volunteer to serve on a water/waste water conservation committee, which meets several times a year. Southwest HeaIthcare System: Scott Crane reported that Measure I in Hemet failed and since funding was not available from that source, the district was not sure what it would do. They would need to look at other sources of funding. There were also seismic issues to address. Inland Valley was close to completion and would have 14 semi-private and 30 private rooms, and a parking facility. January 2007 was the target completion date. The expansion of the lCU (10 beds) and imaging was to start at the first of the year and construction would be ongoing for approximately 1-2 years. Mr. Crane reported there were approximately 300 births per month. Scott also reported that the Temecula hospital project was moving forward. They were close to moving through litigation in the next few weeks. It was anticipated that construction would be underway by next summer and would include offices and medical facilities. OPEN DISCUSSION · City/County & Chamber Updates: City of Lake Elsinore - No report. City of Murrieta - Doug McAllister reported that the library was over 62% completed and should be finished by February 2007. The City was looking for a third high school site in the Los Alamos area. The Los Alamos interchange was underway and off ramps would be closed periodically. Economic Development Corporation of Southwest California Board of Directors Meeting -September 21, 2006 Minutes - Page 3 of 3 Construction updates could be accessed at www.marriott.org on Subscribe Line. Councilman McAllister also reported that the Harvest Festival would be October I, 2006 from 10 a.m. thru 5 p.m. The Veterans Day Parade would be November 9 and the Holiday Parade would be November 25. Murrieta Chamber of Commerce - No report. City of Temecula - Jim O'Grady reported that City Council approved the design and construction of a 480 space parking structure for Old Town Temecula. Street improvements would include underground utilities in Old Town Temecula and were currently working with Southern California Edison on this. Council would recommend that Edison pay the connection cost to the businesses. An informational workshop would be held on September 27 at 6 p.m. at the Old Town Community Theatre. The Fall Car Show would be October 6-7 with 35, 000-40,000 visitors expected to attend. Mr. O'Grady announced this would be his last EDC board meeting since he is retiring. He commented he enjoyed being part of the Board for the last seven years. Riverside County EDA: Ron Roberts reported that code enforcement had always been a problem in the county because of continued growths and not enough code enforcement officers to keep up. There were constant issues with building structures being built without permits and dmnping in the back roads, canyons, etc. The Wine Country was also problematic with wineries opening up without conditional use permits, no planning, no licenses, opening up tasting rooms only, serving food and holding concerts without proper permits. Most of these wineries were small family-run businesses. The county upgraded code enforcement and would be working on these ongoing issues. Mr. Roberts also reported that the revised contract with Pechanga to allow for more slot machines was not signed by the Governor. An MOU between gambling reservations and various surrounding cities would be needed. Pechanga would be required to have the infrastructure of police, fire, etc. before future expansion could occur. Economic Alliance - No report. Temecula Valley Chamber of Commerce - No report. . Other Announcements: Scott Crane suggested that individuals read Proposition 90 regarding eminent domain. This proposition would give property owners more options. Ron Roberts said that Proposition 90 could slow projects down or cause them to come to a complete halt. The cities cannot come out and oppose Proposition 90 but encouraged everyone to read it carefully. Sherrie Jared of Riverside County EDA announced that there would be two meetings regarding EDA's new marketing plan. The meetings would be on September 25 from 8:30 a.m. - 10:30 a.m. at the county administration building and September 27 from 11:30 a.m. - 1:30 p.m. for the eastern county. She would check on giving a presentation to the board. ADJOURNMENT . At 10:10 a.m., motion was made by Doug McAllister, seconded by Greg Smith and carried unanimously to adjourn the board meeting. Respectively submitted by: Charyle Minet Recording Secretary Scott Crane Board Secretary ECONOMIC DEVELOPMENT CORPORATION OF SOUTHWEST CALIFORNIA BUSINESS RELATIONS COMMITTEE MEETING Thursday, September 7, 2006 - 9:00 a.m. California Bank & Trust 41615 Winchester Road, Meeting Room - 2nd Floor TemecuIa, CA 92590 Committee Members Present: Billie Blair, Leading & Learning, Inc. Lalli Guerriero, CDM Group, Inc. Stan Harter, Law Offices of Reid & Hellyer Ashley Jones, City of Murrieta John Willis, Merrill Lynch Gloria Wolnick, City of Temecula Guests: Lisa Fuess, Cutting Edge Staffing EDC: Charyle Minet Diane Sessions Call To Order Chair Stan Harter called the meeting to order at 9:05 a.m. Welcome and Introductions Stan Harter welcomed the Committee and thanked them for attending. Follow-up Action Reports None Companv Contact Reports ZZZ Bail Bonds Lalli Guerriero paid a visit to Bill Cole owner of ZZZ Bail Bonds in Murrieta. . Operations/Services o Provides bail bonds and related services o In operation in this area for 10 years . Facilities o Company operates in I ,400-square- feet leased facilities in Murrieta and Hemet o Other site planned for French Valley/Silverhawk area near the Southwest Justice Center . Markets / Business Climate o Relatives and friends oflaw breakers o Business growing due to population growth . Workforce o 8 employees at all locations o Five employees live in Murrieta/Temecula, two in Menifee/Sun City and one is San Diego county o Plans to expand by two employees due to business growth o No employment recruitment problems . Major Issues o None o Happy doing business in Southwest California BMW Management - Lalli Guerriero paid a visit to Gary Myers, President/CEO in Temecula. . Operations/Services o Restaurant management, training managers, restaurant marketing EDC Business Relations Committee Meeting Minutes - September 7, 2006 Page 2 of3 o In operation in this area for 23 years. . Facilities o Company operates in 25 locations throughout Califomia o Started first Sizzler on Jefferson Avenue in Temecula . Markets / Business Climate o Business advantages of this area were that it was a bedroom community and the growth potential o Business disadvantages were traffic, high commuter numbers, gas costs and litigious state restrictive labor laws o Primary customers - general population 25-55 years old, families, locals . Workforce o 8 employees at Temecula location o 1,100 full-time employees at all locations o No plans to increase or downsize o Recruitment problems at the store level for cooks, bussers, etc. due to problems with lack of workers and immigration laws. o Disadvantages due to low work ethic, entitlement attitude and low unemployment ratio . Maj or Issues o Permit process to long - Temecula unfriendly to businesses o Outsourcing slows city approvals and costs businesses money o State legislation is anti-business; too litigious o Happy doing business in Southwest California; Murrieta more receptive to business - faster process o Elsinore Valley Municipal Water District charges high fees ($268,000) sewer permit o Changes in labor legislation needed o Does not know how EDC could help him. Action item: Diane Sessions would send him e-mail blasts about council actions, etc. Open Discussion . EDC Board Update - Diane Sessions announced the Strategic Planning Session for Regional Economic Development was tentatively planned for early November. The EDC Quarterly Luncheon was to be held September 28, 2006 with Marney Cox from SANDAG giving a presentation about 'Industry Clusters' in the Riverside and San Diego county regions. . Business Relations Committee Awards - FY 2005-2006 o Ashley Jones - Most Business Visits Award o Gloria Wolnick - Most Business Visits Award o Lalli Guerriero - Most Business Visits Award o Joanna Quigley - Best Attendance Award o Jim O'Grady - Best Site Visit Award o Alice Sullivan - Best Site Visit Award . Goal Progress Reports - Lalli Guerriero contacted two businesses. Stan Harter suggested that committee members who had signed up to contact five businesses complete the cycle before new businesses were assigned. Diane Sessions recommended that committee members invite city representatives Ashley Jones and Gloria on the company visits. Charyle Minet would research the companies for potential visits and let committee members know if the businesses no longer existed EDC Business Relations Committee Meeting Minutes - September 7,2006 Page 3 of3 . General Announcements - Lake Elsinore Valley Chamber of Commerce - No Report. City of Murrieta - Ashley Jones reported that the annual Harvest Festival would be October 1st from 10 a.m. - 5 p.m. with typical street fair activities. Murrieta Chamber of Commerce - No Report. City of Temecula - Gloria Wolnick reported the International Film Festival would open Wednesday, September 17. She also reported that the Memorandum of Understanding on behalf of the Southwest California Economic Alliance would go to Council on Tuesday. Dr. John Husing would be updating the community profile. California Economic Alliance - No report. Menifee-Sun City Chamber of Commerce - No report. Diane Sessions reminded the Committee that the Legislative Summit would be held September 14 at South Coast Winery from 7:30 a.m. - 10:30 a.m. and Dan Walters, syndicated columnist for the San Francisco Bee, would be the moderator. Adiournment . The meeting was adjourned at 9:55 a.m. ITEM NO. 48 Approvals City Attorney Director of Finance City Manager ~f"" /112. !fr CITY OF TEMECULA AGENDA REPORT TO: City Manager/City Council FROM: Shawn Nelson, City Manager DATE: November 14, 2006 SUBJECT: City Council Travel/Conference Report - September 2006 PREPARED BY: Sue Steffen, Executive Assistant RECOMMENDATION: Receive and file On September 7Council Member Jeff Comerchero traveled to Milwaukee, Wisconsin to attend the National League of Cities Community and Economic Development (CED) Steering Committee Meeting. On September 13 Mayor Ron Roberts traveled to Los Angeles to attend meetings of the Southern California Association of Governments (SCAG) Administration, Transportation & Communications, and Regional Council Committees. SCAG will reimburse the City for his hotel expense. On September 14 Council Member Maryann Edwards traveled to Vancouver, Washington to attend the National League of Cities Human Development Steering Committee meeting. On September 14 Mayor Ron Roberts traveled to La Quinta, California to attend the Riverside Transportation Commission (RCTC) meeting and workshop. Attachments: Meeting Agendas ~i~.~ NATIONAL LEAGUE OF CITIES COMMUNITY AND ECONOMIC DEVELOPMENT (CEO) STEERING COMMITTEE MEETING SEPTEMBER 7-9, 2006 Hotel Hyatt Regency Milwaukee 333 West Kilbourne Avenue Milwaukee, WI 53203 (414) 276-1234 Presidin~ The Honorable Henry Marraffa Council Member Gaithersburg, Maryland NLC Staff Pamela Konde Senior Policy Analyst Phone: (202) 626-3068; Fax: (202) 626-3043 Thursdav. September 7. 2006 6:00 p.m. - 9:00 p.m. Fridav. September 8. 2006 8:00 a.m. 9:00 a.m. - Noon (with break as needed) Noon-l:00p.m. 1 :00 p.m. - 1 :30 p.m 1 :30 p.m. - 4:30 p.m. (with break as needed) 5:30 p.m. Welcoming Reception at Potawatomi Bingo Casino 1721 West Canal Street, Milwaukee (5:30 - 5:45 pm - meet in lobby for transportation- on 4th Street side of hotel) Breakfast Session I - Economic Development after a Disaster - Federal Policy Development Speaker: Eric Smith, Finance Professor, A.B. Freeman School of Business at Tulane University Lunch Session II - Affordable Housing - Federal Policy Development Session III - Affordable Housing -- Local Strategies Speaker: Jeff Lubell, Executive Director, Center for Housing Policy Private tailgate buffet and Milwaukee Brewers baseball game (meet in hate/lobby at 5:30pm, 7:05pm game) 2 Saturdav, September 9, 2006 8:00 a.m. 9:00 a.m. - 9:30 a.m. 9:30 a.m. - 10:30 a.m. 10:30 a.m. - 11 :30 a.m. 11:30 a.m. Noon - 4:00 p.m. 6:00 p.m. - 8:30 p.m. Breakfast Session IV - Legislative Update Legislati;ve Update by Michael Wallace, Senior Legislative Counsel Session V - Review Resolutions o Review Updated CDBG Resolutions". o Update on Comprehensive Immigration Reform Resolution o Review 2006 Resolutions Reports and Wrap-up NLC Board of Directors Report Anne Sinclair, Council Member, Columbia, S.C. Advisory Council Report Ruth Hopkins, Council Member, Prairie Village, Kansas Adjournment City Economic Development Tour Alderman Davis and staff from the City's Community Development Block Grant, Housing, and Economic Development offices will lead a tour of the City's landmark proj ects. Box lunch provided on board. Closing Reception at the Milwaukee Art Museum 0" J SOUTHERN CALIFORNIA ASSOCIATION of GOVERNMENTS Main Office 818 West Seventh Street 12th Floor Los Angeles, California 90017-3435 t (213) 236-1800 f(213)236.1825 www.scag.ca.gov Off"KVS: President Yvonne 8. Burke, Los AngelesCounl,.lirstVicePr5ident:GaryOwil~ San Bernaulino Coonty. SerondVi(e Pcesident: Rkhafd DIxon, Lakeforest-lmml'diatePasl l'Iesident:TonIYoung,~rtHueneme lmptl'lal County: Victor Carrillo, Imperial County. Ion Edney,E1Centro Los AngrIes ClJunty: Yvonne B. Burke,los AngdesCounty.7.evYaroslavsky,losAngeles Coonty.jimAldinge~Manhattanllea<h_Harry Il<Ihlwln,SanGabriel.Paul80wlen,CeIri1~. ToddCampbeILBurbank.TonyCarde~,los Angeles. Stan Carroll, La Habra Heigh~. M.Jrga(et Clall Rosemead. Gene Daniels, Paramount. Mike DIspeIllo1, Palmdale.Judy Dunlap,lng!ewood.RaeGabelldt,l.ong8eadl. DavldGalln,Dowlley;Erl(Garceltl,losAngeles . Wendy Greuel, losAngeles. Frank Gurule, Cudally.JanlceHahn,losAngeles.lsadoreHa1I, Cllmpton. Kelrh W. Hanks, Alusa. Jose Huizal, losAngeles.TGm LaBonge, LosAngeles. Paula Lanll, Pomona. Paul Nowalka,Torrance. Pam O'Connor, Santa Moolra . Alex Padilla, Los Angeles.BernardPal'is,lolAngeles.lanl'eny, l.osAngeles. Ed Re)'eS. l.os Angeles; Bill Rosendahl, los Angeles. Greig Smith, Los Angeles-Tom Sykes, Walnut. Paul Talbot AIIIambra.MikeTen,SollthPasadena.lonia Re)'fs Uranga, long Beach. Anl00lo Villaralgosa. Los Angeles. DeoolsWaslllJum. Calabasas.JaaWfIss, los Angeles. HerbJ. Wesson, Jr., los Angeles. Dennisline,los '.... Orange County: ChrisHorbjt,Oran!jl! County. CbriIlineB3rnes,La Palma.JoIInBeaurnan, 8fea. louBone,TUSlin.ArtBrown,Buena Park . Richard Chil'lez,Anaheim. Debbie Cook, Huntington Beacll.Leslie Daigle, Newport Beach. Rithard Dixon,Lakeforest. Paul Glaob, LagunaNiguel.MalilynnflQe,losAlamltos RiftnJd.Coutlty:JeffSlone,RiversideCoonty . Thomas Buddey,lakeElsinore.Bonnie Ri(k!nger, MOleno Valley. Ron lmeridge, RiYerside.GregPellis,CathedraICity'Ron Roberts.lemewla San Bema/dino County:.Gaf)' ()yIlt, San Bernarclino County. Lawren(e DaIe.ll<Irslow, Paul EdIIJll,Mootclalr. Lee Ann Garda, Grand Terr~ce.TlmJasper,TownofAppleValley.Larf)' MtCallon,Hlghland. DeboriIh Robertson, Rialto .AlanWapner,Ontario YenturaCounty:JudyMikels,'knlllraCounty. Glen Becerra, Slml Valley. Carl Morehouse, San Buenavenlura-ToniYoung,I'ortHueneme O~Co.untyTr.lInsportationAuthority: l.ouConta,CountyofOrange RIverside Co.unty Tr.lIlI5p(lrtation CGmmIssIon:RoblnU1we,Hemet Ventura Co.unty Transportation Commission: Keith Millhouse, Moorpalk SS905.09.06 MEETING OF THE PLEASE NOTE DATE CHANGE Thursday, September 14,2006 9:00 a.m. -10:00 a.m. SCAG Offices 818 West 7th Street, 12th Floor Conference Room San Bernardino A&B Los Angeles, CA 90017 213.236.1800 If members of the public wish to review the attachments or have any questions on any of the agenda items, please contact Lisa Taylor at 213.236.1891 or tavlorl@scaa.ca.aov Agendas and Minutes for the Administration Committee are also available at: www.scaa.ca.aov/committees/ac.htm SCAG, in accordance with the Americans with Disabilities Act (ADA), will accommodate persons who require a modification of accommodation in order to participate in this meeting. If you require such assistance, piease contact SCAG at (213) 236-1868 at least 72 hours in advance of the meeting to enable SCAG to make reasonable arrangements. To request documehts related to this document in an aiternative format. please contact (213) 236-1868. #110623 v7 - Cover Page_Administration Committe ADMINISTRATION COMMITTEE - PAGE # TIME "Any item listed 011 the agenda (action or information)'may be acted upon at the discretion of the Committee. " 1.0 CALL TO ORDER & PLEDGE OF ALLEGIANCE Hon. Toni Young, Chair 2.0 ELECTION OF VICE CHAm 3.0 PUBLIC COMMENT PERIOD Members of the public desiring to speak on an agenda item or items not on the agenda, but within the purview of the Committee, must fill out and present a speaker's card to the Assistant prior to speaking. A speaker's card must be turned in before the meeting is called to order. Comments will be limited to three minutes. The chair may limit the total time for all comments to twenty (20) minutes. 4.0 REVIEW and PRIORITIZE AGENDA ITEMS 5.0 CONSENT CALENDAR 5.1 Approval Item 5.1.1 Minutes of Julv 6. 2006 Meeting Attachment 252 5.).2 Contract Amendments Over $25.000 RC Attachment 11 5.].3 2006-2007 California Trucking Association Membership Dues RC Attachment 16 5.1.4 2006-2007 CALCOG Membership Dues RC Attachment 17 5.1.5 MOU with Clean Cities Coalition RC Attachment 18 5.1.6 Continuing Cooperative Agreements (CCA) between SCAG and Subregions Mailed Separately ~ SOUTHERN CALIFORNIA ASSOCIATION of GOVERNMENTS # 1:!:'iH3K \" I A - Agcnda~Admjnislralhm COllllllitlcc_Scph.:mhcr 2006 9/1/10061:51 PM L.Taylor ADMINISTRATION COMMITTEE - PAGE # TIME S.O CONSENT CALENDAR (continued) S.2 Receive and File 5.2.1 Contracts/Purchase Orders $5.000 to $250.000 RC Attachment 7S 6.0 ACTION ITEMS 6.1 Fulbright & Jaworski Contract Karen 21 5 minutes RC Attachment Tachiki, Legal CouDseI Recommended Action: Authorize renewal 6.2 Regional Housing Needs Hasan 22 15 minutes Assessment (RHNA) General Ikhrata, Fund Request Director, P&P RC Attachment Recommended Action: Approve 6.3 1-710 (South) EIRIEIS MOD Alan 26 5 minutes RC Attachment Thompson, SCAG Staff Recommended Action: Approve 6.4 Resolution 06-478-1 Conferring Bob Huddy, 39 15 minutes Designated Recipient Status to VCTC SCAG Staff LACMT A. and OCT A for the Large Urbanized Areas (UZA's) for the JARC/New Freedom Programs RC Attachment Recommended Action: Approve 6.5 Ap1?rove Travel to IAP2 Conference Hasan S2 5 minutes in Montreal. CAN Ikhrata, Director, P&P Recommended Action: Approve ~ SOUTHERN CALIFORNIA ii #125838 vIA ~ Agenda.-Administration Committee_September 2006 9/112006 11,39 AM ASSOCIATION of GOVERNMENTS L.Taylor ADMINISTRATION COMMITTEE - PAGE # TIME 6.0 ACTION ITEMS (continued) 6.6 North Los An~e1es Countv (NLA Co.) Wayne Moore, 60 5 minutes Subregion - Aoorove Pavment of $22.000 CFO Consulting Services RC Attachment 6.7 FY 2006-07 Overall Work Wayne Moore, 61 10 minutes Program (OWP) Amendment (2) CFO RC Attachment Recommended Action: Approve 6.8 Revision to Regional Council Stipend Wayne Moore, 66 5 minutes and Meeting Exoense Policv CFO RC Attachment Recommended Action: Approve .6.9 Amendment to the SCAG Travel Policv Wayne Moore, 69 5 minutes and Guidelines CFO RC Attachment Recommended Action: Approve 6.10 FY 2007-2008 Comorehensive Wayne Moore 70 10 minutes Budget Develooment CFO RC Attachment Recommended Action: Approve 6.11 Increase Threshold for Aooroval Wayne Moore, 73 5 minutes of Contract Amendments CFO RC Attachment Recommended Action: Approve .~ SOUTHERN CALIFORNIA ASSOCIATION of GOVERNMENTS iii #125838 viA. Agenda_Administration Conunittee_September 2006 9/112006 11 :39 AM L Taylor ADMINISTRATION COMMITTEE - PAGE # TIME 7.0 INFORMATION ITEMS 7.1 Audit Committee Report Bon. Paul Nowatka, Chair 7.2 CFO Monthlv Financial Report RC Attachment Wayne Moore, CFO 95 5 minutes 8.0 FUTURE AGENDA ITEMS Any Committee members or staff desiring to place items on a future agenda may make such request. Comments should be limited to three (3) minutes. 9.0 ANNOUNCEMENTS 10.0 ADJOURNMENT The next meeting of the Administration Committee will be held on Thursday, October 6, 2006 at the SCAG offices. ~ SOUTHERN CALIFORNIA ASSOCIATION of GOVERNMENTS IV #125838 viA - Agenda_Administration Comminee_September 2006 9/l1200611,39 AM L.Taylor SOUTHERN CAUFORNIA ASSOCIATION of GOVERNMENTS Main Office 818 West Seventh Street 12th Floor Los Angeles, California 90017-3435 t(213) 236-1800 f(213)236.1825 ,,",ww.scag.ca.gov otfktrs: Plflidi!l'll; 'MOM II. ~rl:e, lei. Ar.qm(wnty. r.nlVI(ef~t;GalyrMt~ s.n8trNr6"Q(Wllt)'.$c(MdVkeI'l~dH\t !\l;fWtl Diwn, l.Ikt fllI~~ . t~le p~ PtMidtl1!:t(lfljYlltlng.i'r.>ftHlI~ ImIMrla1 COuIlty: VlttQf Gurmo, Im~II.l1 (<<mty.l<lnEdn""l,f1(i!l'Il~ LoIAngeIuCoumy.'tAAtneB.!lOO:t,to. Angeles Coon!)' 0 m Y.<<o<JaVily, l<l:'J Angt'lt'l: {llllnl)'.l1m.IJdllll]ff.lhnMttanlli!.lrll.~ft"f B.lIdwln,SanGabrid'P.lul~n,Ct1IiI(l'i. 1OOd~,~.1~~CMd<<m.lo.; ^n~'M. Slall (alTcl~la l1abra Ilt~hn. Mug,lrel (Iul,RimlllMd. G~nt O.lnleh. r~larnllllnt. Mlkt Dbpenu,Palmdale o.lud}' Otm\.lp.IIl!I~.lL1ewbelkh.long8t~dI. flmdG.lf4I.!JoI\1lC'l'.&IcG.lf(ttti.l.os~cll$ oWtlld'fGrrorllmAngelt's.fralll;(;ulult. {udlllyoJ'nnKaM.lM^ogel~.\s.ldwl!.tlt {Q.IllI.KtitbW.H.lnh,AMiI.~KI.IiU~ -lcsAngtltsolom!..l8e!lge,tosAngi!ks.P.w!a 1.&,tz.i'llrnllmoP.Il!Now~ti:.a,r~'l'.lm Olcrmlll'. San:.! Mr.nka . AI~~ Padilla. L!Ji "1lgf.~.lltfmnfPaoo.lnsAn~.Janf'my, losAngtI6.EdI\eyf.l..lIliAilgtlts.aill llost1ldollll,losAngd~.Gltlg.Smi'J\,l(lS A~.TomSylb..Wdlnlll.Paulllitltlt Alh.lmb!i.MEi;tTtl"SelDlhp~de<l~.TOIli, R{)'o Ur.lng.l, !l/nq 8~ath . ~I~ Y1llu.l~. l~~ An;tIn. Dfflnb W~1l, Gl~bam 0 Mlk Vim." 1.0\ ~'ts. Ktrb! WesWll, Jr.l.o; An~e1e$. D~nnl$ Zint,l~ ""'" OraqgeCount}:thMllo:!Iy,Or/.ngeCollllly' (Ilrinlne~LlP.!ma.John&uun'lMl. BRa.lGIl&Mt,Mtill,ArtIlro\ljn,~M . Rknanl thil"te.t Anabelm .lIdlbi~ (oct. Hunt~lonRtadl'lesiie[lalglt,HtWl\Ort .&ad1.RidJ.lldlllttn.~~fottslo!'aulGWtl. UQUM Nl9'J&.M.lIl1ynn~.losA!.lmilOS IQftnIdIlCouJJty.ltff~toor,flimsid~{lliJnl)' oll'r<tlrwsSudd~y, l.l~t Elsinm' Soolllt f!i(kLW~f. MOft!l~ V~llty . P.on l(l\'~'ldl}t, R!w:sldt'G:f9l'tttl\. (al~.wal Clty .Il~. RabttU,~Jia .San llfllU,~lno (c.v:l!y; uli)' (Nil!, San tI6naIdillO(C>l.'llty.~!)alt,e.Ul1<)w' P.tiJIW:M;MGn:d.I:.lte^MGalO.l,Gton~ krr.w!,Ttn~.'frtM1oIAppl~Valky.tA"f M!U~,,", I!igltlu.d. DtWl!i Ilobt~~, -Rialto .AlanW~plIt"Onrafb YtnwrllCounty:JlftlJMik",-,\Vtn!UtaUlUnij' GlMl1mm,S.'miVillty.UtIMl1lehMw.Sdn !l.Ienmnl~!!.r,,"I'futJog,l'orl H~.rm~ eran9f(olflltyTt4l\$~tlllllAutllority: I.o~ (w!t;l, w.ml~of OIang~ "RIvtrSld. County 1l'lMflOrtatloll (omlllbsloll;&WlnV-,l!elmt Ventura County Tranlportatlon (ommlulon: ~~"il Mil.Thoo\~, MO'Jfp4lk \l,~,;:'~;;:, SUPPLEMENTAL ATTACHMENT FOR THE Thursday, September 14, 2006 Continuina Cooperative Aareements fCCAl Between SCAG and the Subreaions Administration Committee Item 5.1.6 (RC Attachment) Regional Council Item 3.1.6 (Attachment) SCAG, in accordance with the Americans with Disabilities Act (ADA), will accommodate persons who require a modification of accommodation in order to participate in this meeting. If you require such assistance, please contact SCAG at (213) 236-1868 at least 72 hours in advance of the meeting to enable SCAG to make reasonable arrangements. To request documents related to this document in an alternative format. please contact (213) 236-1868. #J 10623 v7 - Cover Page_Administration Committe SOUTHERN CALIFORNIA . ASSOCIATION of GOVERNMENTS Main Office 818 West Seventh Street 12th Floor Los Angeles, California 90017-3435 t(213) 236-1800 f(213) 236-1825 www.scag.ca.gov . Officen:Presldent:YvonneB.Burke,Lol AngelesCounty.ArnVlcePlesident:GaryOvitt San BemardiIlOCounty.SecondVICePresident: Rkhard Dixon, Lake Fore5t. Immediate Past President:TonIYoung,PortKueneme Imperial CounlJ: Victor Carrillo, Imperial Counly.)onEdney,BCentro Los Angeles County: Vvonne 8. Burb,lDs AngelesCounly.Zevl'aroslaV5iy,losAngeles Counly.JlmAldinger,Manharranlleadl.Harry Ilaldwin, San Gabriel. Paul Bowlen, Cellit05' Tcdd Campbell,Burbank.Tony Cardenas, Los Angelel.StanCaI'lQII,LaHabraHelghts. Margaret aark, Rosemead. Gene Daniels, Paramount-Mike Dilpenza, Palmdale.Judy Dunlap,lnglewocd.RaeGabelidl,long8eadl. DavldGafin, Downey. EricGalCettl,l.o$Angeles .WendyGreuel,LosAngeles.FrankGurule, Cudahy.JaniCeHahn,LosAngeles.lsadoreHalt Compton. Keith W. Hanks,Azusa. JOIe Huizar, LosAngeles.TnmLaBonge, losAngeles. Paula lantz,Pomona. l'aul Nowatka,Torrance. Pam . O'Connor, Santa Menlca. Alex Padilla, Los Angeles.BemardPal'ks,LosAngeles.JanPerry, Los Angeles. Ed Rey5, Los Angeles. Bill Rosendahl, Los Angeles. Greig Smith, Las Angeles. Turn Sykes, Walnut. Paul Tallxlt Alhambra. Mike Ten, South Pasadena. Tonia Reyes Uranga, Long Beach. Antonlu Villaralgosa, Los Angtles. DennisWashbum, Calabam..Ja(kWeiss,LosAngeles.Herbl Wesson, Jr~ Los Angeles. Dennis Zlne, Los Angeles Orange County: Chris Norby, Orange County. Cbristine Barnes. La Palma . John Beauman, 8fea-louBone,Tuslin.AftBrown,BuenaPark . Richard Chavel, Anaheim. Debbie Cook, Huntington Beach. Leslie Daigle, Newport Beath. Ri(hard Dixon, lake Fore5t-Paul Glaab, lagunaNiguel.ManlynnPoe,LosAlamltos Riverside County:JeffStone,R1vel5ide County . Thomas Buckley, Lake Elsinore. Bonnie flitklnger, MorenG Valley' Ronlcverldge. RiVer5lde-GregPetti!;CathedraIGty..RGn RobertS,Temerula San Bernardino County: Gary Ovltf, San BemardinoCounty.lawlenceDale,Bal5tow. Paul Eaton, Montdalr. lee Ann Garda, Grand Terrace.TImJasper,TownofAppleVaUey.Larry McCallon,lilghland. (}eborah Rcbertson,Rlalto .AlanWapner,Ontario YmuraCounty:JudyMikels,VenturaCounty. Glen Becena, Siml Valley. (all Murehouse,San BlII'naventura.TcnlVoung,PortHueneme Orange Count)'TIaniportatlon Authority: LouConea,CountycfOrange Riverside County Transportation Commission: Robin Lowe,liemet Ventura County Transportation Commission: KeithMlllhcll5e,Mcorpark 55~tIS.Il9.06 .. Doc # 124959 v4 - TCC MEETING OF THE TRANSPORTATION AND COMMUNICATIONS COMMITTEE PLEASE NOTE DA TE CHANGE Thursday, September 14, 2006 10:00 a.m. - 11 :45 a.m. SCAG Offices 818 West ih Street, 12th Floor Conference Room San Bernardino Los Angeles, CA 90017 213.236.1800 If members of the public wish to attachments or have any questions agenda items, please contact Cathy 213.236.1896 or alvarado@scaa.ca.aov review the on any of the Alvarado at Agendas and Minutes for the Transportation and Communications Committee are also available at: www.scaa.ca.aov/committees/tcc.htm SCAG, in accordance with the Americans with Disabilities Act (ADA), will accommodate persons who require a modification of accommodation in order to participate in this meeting. If you require such assistance, please contact SCAG at (213) 236-1868 at least 72 hours in advance of the meeting to enable SCAG to make reasonable arrangements. To request documents related to this document in an alternative format, please contact (213) 236-1868. ~RANSPORTATION COM M U N I CAT I ON S & COMMITTEE .. IIfIIBI PAGE # TIME "Any item listed on the agenda (action or information) may be acted upon at the discretion of the Committee". 1.0 CALL TO ORDER & PLEDGE OF ALLEGIANCE Hon. Harry Baldwin, Chair 2.0 . PUBLIC COMMENT PERIOD Members of the public desiring to speak on an agenda item or items not on the agenda, but within the purview of this committee, must fill out a speaker's card prior to speaking and submit it to the Staff Assistant. A speaker's card must be turned in before the meeting is called to order. Comments will be limited to three minutes. The Chair may limit the total time for comments to twenty (20) minutes. 3.0 REVIEW and PRIORITIZE AGENDA ITEMS . 4.0 CONSENT CALENDAR 4.1 Approval Items 4.1.] Minutes of Julv 6,2006 Meeting Attachment 1 4.1.2 Propositions I A and 1 B Attachment 9 A legislative constitutional amendment on Transportation funding protection and the Highway Safety Traffic Reduction, Air Quality, and Port Security Bond Act of 2006. Recommended Action: Recommend a Support position on Propositions I A and I B to the Regional Council. I. .'...,( .. :> ~ SOUTHERN CALIFORNIA ASSOCIATION of GOVERNMENTS Te(' - Sept. ~006. DoL' # 12:'i-l-HH C. Alvarado TRANSPORTATION COMMUNICATIONS & C ~ OMMITTE~ " '\. TIME~ PAGE # - 'v 4.0 CONSENT CALENDAR continued 4.2 Receive and File 4.2.1 Slate and Federal Legislative Matrix Attachment 14 Summary of state and federal legislative bills relevant to SCAG activities and items of inter est. SCAG's Comments on the Notice of Proposed Rule Making on SAFETEA-LU Mailed Separately 5.0 ACTION ITEMS 5.1 Resolution #06478-2 of SUppOlt for .Continued Studv of Tunnel Option to Complete the 110 Gap Closure Attachment Bob Huddy, SCAG Staff 26 5 minutes . Resolution of support for use of the tunnel option as a means of completing the 710 gap closure in developing the 2007 RTP. Recommended Action: Approve Resolution #06478-2 .5.2 Regional Aviation Svstem Scenarios for .. 2008 RTP Attachment Mike Armstrong, SCAG Staff 29 10 minutes Approve regional aviation system scenarios for modeling for the 2008 RTP. These scenarios were approved by the Aviation Task Force on July 27, 2006. Recommend Action: Approve regional aviation system scenarios for modeling for the2008 RTP. . I ii Tee - Sep!. :!tlOb. Doc #] 25488 C. Alvlllf.ldo ~ SOUTHERN CALtFORNtA ~ _____ ._._~" _c _....lrDlUur.......~ ~ '--'~,~=^":_.-..-,...".,,,,,_,,/"_7o-""~""'" .- . , RANSPORTATION COM M UN I CAT ION S f(J_ & COMMITTEE PAGE # 5.0 ACTION ITEMS continued 5.3 Southern California National Freight Gatewav Strategy Memorandum of Understanding <MOUl Attachment Hasan Ikhrata, SCAG Staff 32 SCAG is working in partnership with the County Transportation Commissions to Establish a process through which state and Federal agencies would share responsibility And work collaboratively with Southern California transportation agencies to address The infrastructure needs, environmental effects, and community impacts of increasing goods movement through Southern California. . Recommended Action: Recommend to the Regional Council to authorize the Executive Director to continue to negotiate and to sign The MOU (Attach men I A) 5.4 Maglev 10S'Preliminarv Engineering- Draft Summary Report Attachment David Chow, lEI Group 41 A presentation will be given of Ihe draft results of the preliminary engineering work for the Maglev Initial Operating Segment (lOS). Recommended Action: Receive and File. 6.0 INFORMATION ITEMS 6.1 Status Report on CTC Workshop to Establish Criteria for Bond Funding IlasanIkhrata, Director, P&P . ~ iii TCC - Serl. .::!006. I )(Il' # 1.::!5488 ......., . SOUTHERN CALIFORNIA ASSOCIATION of GOVERNMENTS TIME 5 Minutes 20 minutes 2 minutes TRANSPORTATION COMMUNICATIONS - 6.0 INFORMATION ITEMS (continued) 6.2 Southern California Regional Rail Authority's Sealed Corridor Program Attachment The committee will recei ye a presentation from SCRRA staff on Metrolink's Sealed Corridor Program, a comprehensive grade crossing and rail corridor safety investment initiative funded in part by the Federal Railroad Adminislration following the derailment in Glendale in January 2005. 6.3 1-710 (South) EIRIEIS MOU Attachment Update on MOU between SCAG, Caltrans District 7, LACMTA and the Gateway Cities Council of Governments regarding an EIR/EIS for the 1-710 corridor from the POIts to SR-60. 7.0 MAGLEV TASK FORCE REPORT 8.0 GOODS MOVEMENT TASK FORCE REPORT 9.0 CHAIR'S REPORT 10.0 STAFF REPORT & C ~. OMMITTE~ PAGE # TI~ ~ Steve Wylie, SCRRA 74 20 minutes Alan Thompson, SCAG Staff 83 5 minutes , . Hon. Robin Lowe, Chair Hon. Art Brown, Chair Hon. Harry Baldwin, Chair Rich Macias, SCAG Staff 11.0 FUTURE AGENDA ITEMS . Any committee members or staff desiring to place items on a future agenda may make such request. Comments should be limited to three minutes. 12.0 ANNOUNCEMENTS ~ IV SOUTHERN CALIFORNIA ASSOCIATION of GOVERNMENTS " Tee' - Sept. 2<K}6. Doc #1254XN C. Alvmt:ldn r' C '- RANSPORTATION OMMUNICATIONS & COMMITTEE PAGE # 13.0 ADJOURNMENT The next meeting of the Transportation and Communications Committee will be held on October 5, 2006 at the SCAG office. , .~ SOUTHERN CALIFORNIA ASSOCIATION of GOVERNMENTS v TIME T('C' ~ SCpl. 1006. Dol' #1~S4HH C. Alv;:lrado SOUTHERN CALIFORNIA ASSOCIATION of GOVERNMENTS Main Office 818 West Seventh Street 12th Floor Los Angeles. California 90017-3435 t(213) 236-1800 f (213) 236-1825 www.scag.ca.gov Officers: President: Yvonne B. Burke, Los Angeles County. First Vice Presldent Gary Ovitt, San Bemardlno County. Second Vice President; Richard Dixon, lake Forest. Immediate Past President Toni Young, Port Hueneme :Ial County: Victor Carrillo, Imperial County idney,BCentro Los Angeles County: Yvonne B. Burke, Los AngelesCountyowYaroslavsky,LosAngeles County. Jim Aldinger, Manhattan Beach o Harry Baldwin, San Gabriel 0 Paul Bowlen. Cerritos' Todd Campbell, Burbank' Tony Cardenas, Los Angeles' Stan Carrnll, La Habra Heights' Margaret Clark, Rosemead 0 Gene Daniels, Paraltl{lunt 0 Mike Dispenza, Palmdale . Judy Dunlap,lnglewood'RaeGabel1ch,LongBeach' DavidGafin,Downey'EricGarcettl,LosAngeles o Wendy Greuel, Los Angeles' Frank Gurule, Cudahy . Janice Hahn, ills Angeles 0 Isadore Hall, COmpton 0 KeithW. Hanks,Azusa'jose Huizar, losAngeles o Tom LaBonge, Los Angeles oPaulalantz,Pomona'PaulNowalka,Torrance opamO'Connor,SantaMonlca'AlexPadllla,Los Angeles 0 Bernard Parks, LosAngelesoJan Perry, Los Angeles 0 Ed Reyes, Los Angeles 0 Bill Rosendahl, Los Angeles' Greig Smith, Los Angeles 0 Tom Sykes, Walnut 0 Paul Talbot, Alhambra 0 Mike Ten, South Pasadena . Tonia ReyesUranga,LongBeach'AnlonloVlllaralgosa, Los Angeles' Dennis Washburn, Calabasas' jackWeiss, Los Angeles 0 HerbJ.Wesson,Jr., Los Angeles 0 Dennis Zlne, Los Angeles Orange County: Chris Norby, Orange County. Christine Barnes, La Palma o John Beauman, Brea'LouBone,Tuslin'ArtBrown, Buena Park . Richard Chavez, Anaheim' Debbie Cook, Huntington Beach' leslieDaigte, Newport Beach o Richard Dixon, Lake forest 0 Paul Glaab, LagunaNiguel' Marllynn Poe,losAlamitos Riverside County: Jeff Stone. RiversideCOunty. Thomas Buckley. Lake Elsinore' Bonnie Flickinger, Moreno Valley' Ron Loveridge, Riverside 0 Greg Pettis, Cathedral City 0 Ron Roberts,Temecula San Bernardino County: Gary . Ovitt, San Bemardino County 0 Lawrence Dale, Barstow' Paul Ealon, Montclair' Lee Ann Garcia, Grand Terrace' Tim jasper, Town of Apple Valley' Larry McCallon,Higbland' Deborah Robertson, Rialto 'Alan Wapner, Ontario Ventura Counly:judy Mikels, Ventura County 0 ~. f3ecerra,SlmlValley'CarIMorehlluse,San venturaoToniYoung,PortHueneme .,ge County Transportation Authority: Lou Correa, CountY of Orange RIverside County Transportation Commission: Robin Lowe, Hemet Ventura County Transportation Commission: KeithMiIlhouse,Moorpark 96805.09.06 No. 478 MEETING OF THE PLEASE NOTE DATE CHANGE Thursday, September 14, 2006 12:00 Noon - 1:30 p.m. SCAG Offices 818 w. 7th Street, 12th Floor San Bernardino Conference Room A & B Los Angeles, California 90017 213.236.1800 Agendas and Minutes for the Regional Council are also available at www.scag.ca.gov/committees/rc.htm If members of the public wish to review the attachments or have any questions on any of the agenda items, please contact Shelia Stewart at 213.236.1868 or stewart@scag.ca.gov. SCAG, in accordance with the Americans with Disabilities Act (ADA), will accommodate persons who require a modification of accommodation in order to participate in this meeting. If you require such assistance, please contact SCAG at 213.236.1868 at least 72 hours in advance of the meeting to enable SCAG to make reasonable arrangements. To request documents related to this document in an alternative format, please contact 213.236.1868. REGIONAL COUNCIL o ... "Any item listed on the agenda (action or information) may be acted upon at the discretion of the committee" 1.0 CALL TO ORDER & PLEDGE OF ALLEGIANCE llon. Yvonne Burke President 2.0 PUBLIC COMMENT PERIOD - Members of the public desiring to speak on items on the agenda, or items not on the agenda, but within the purview of the Council, must till out and present a speaker's card to the Executive Assistant prior to speaking. A speaker's card must be turned in before the meeting is called to order. Comrnents will be limited to three minutes. The President may limit the total time for all comrnents to twenty minutes. 3.0 CONSENT CALENDAR o 3.1 Approval Items 3.1.1 Minutes of Julv 6. 2006 Meeting Attachment 3.1.2 Contract Amendments Over $25.000 Attachment (Administration) 3.1.3 2006-2007 California Trucking of Association Membership Dues Attachment (Administration) 3.1.4 2006-2007 CALCOG Membership Dues Attachment (Administration) 3.1.5 MOD with Clean Cities Coalition Attachment (Administration) 3.1.6 Continuing Cooperative Agreements (eCA) Between SCAG and Subregions Mailed Separately (Administration) . (The parenthetical denotes items that have been considered by the listed committee) PAGE # TIME 02 11 16 17 18 ~ SOUTHERN CALIFORNIA ASSOCIATION of GOVERNMENTS #126498 vI - REGIONAL COUNCIL AGENDA_SEPT 2006 9/1/2006 11 ,09 AM REGIONAL COUNCIL 11IIIII ) 3.0 Consent Calendar - (continued) 3.1.7 Fulbright & Jaworski Contract Attachment (Administration) 3.1.8 Regional Housing Needs Assessment (RHNA) General Fund Request Attachment (Administration) 3.1.9 1-710 (South) EIRlEIS MOU Attachment (Administration) 3.1.10 Resolution 06-478-1 Conferring Designated Recipient status to VCTC. LACMTA. and (UZA's) aCTA for the Large Urbanized Areas for the JARCfNew Freedom Prog:rams Attachment (Administration) 3.1.ll Approve Travel to IAP2 Conference in Montreal. CAN Attachment (Administration) 3.1.12 North Los Angeles Countv (NLA Co.) Subregion -Approve Payment of $22. 000 Consulting Services Attachment (Administrative) 3.1.13 FY 2006-07 Overall Work Program (OWP) Amendment 2 Attachment (Administration) 3.1.14 Revision to RC Stipend and Meeting Expense Policy Attachment (Administration) 3.1.15 Amendment to the SCAG Travel Policy and . Guidelines Attachment (Administration) ii ~ SOUTHERN CALIFORNIA ASSOCIATION of GOVERNMENTS PAGE # TIME 21 22 26 39 CJ 52 60 61 66 69 #126498 vI - REGIONAL COUNCIL AGENDA_SEPT 2006 9/1/2006 11 ,09 AM REGIONAL COUNCIL n 11IIIII PAGE # TIME 3.0 Consent Calendar - (continued) 3.1.16 FY 2007-2008 Comprehensive Budget Development Attachment (Administration) 70 3.1.17 Increase Threshold for Approval of Contracts Amendments Attachment (Administration) 73 3.1.18 Additional SCAG District in the CV AG SUbregion Attachment 74 3.2 Receive & File o 3.2.1 Purchase Orders/Contracts between $5.000 - $250,000 Attachment (Administration) . 75 3.2.2 CFO Monthlv Financial Report Attachment (Administration) 95 3.2.3 State and Federal Legislative Matrix Attachment 97 4.0 PRESIDENT'S REPORT 4.1 Appointments 4.2 Shanghai Maglev Delegation Report Attachment 122 4.3 Executive Committee (EC) Report Action Ratify actions taken at the July 27, 2006, meeting to be considered in one motion 4.3.1 Approve Contracts over $250.000 Attachment . Sapphire Technologies . Cerrell Associates 128 iii ~ SOUTHERN CALIFORNIA ASSOCIATION of GOVERNMENTS #126498 vi . REGIONAL COUNCIL AGENDA_SEPT 2006 9/112006 11 ,09 AM REGIONAL COUNCIL 11IIIII ) 4.3 Executive Committee (EC) Report (continued) Action 4.3.2 Adopt Resolution #06-477-1 approving the proposed 2004 RTP Amendment andassociated Conformitv Determination Attachment 4.3.3. Adopt Resolution #06-477-2 approving the 2006 RTIP and associated Conformitv Determination Attachment Ratify action taken at the August 3, 2006, meeting to be considered in one motion 4.3.4 Approve Amended Language (as 08/03/06) on the Regional Housing Needs Assessment (RHNA) Attachment Ratify action taken at the August 24, 2006, meeting to be considered in one motion 4.3.5 Approve Planning of RHNA Workshops Consistent with the Pilot Proposal Attachment 5.0 EXECUTIVE DIRECTOR'S REPORT 6.0 ACTION ITEMS 6.1 Administration Committee Report Bon. Toni Young, Chair 6.2 Enerl!V & Environment Committee (EEC) Report Bon. Dennis Washburn, Chair 6.3 Transportation & Communications Committee (TCC) Report Bon. Barry Baldwin, Chair jv PAGE # 132 '209 216 220 TIME (J I _. ~ SOUTHERN CALIFORNIA ASSOCIATION of GOVERNMENTS #126498 vI . REGIONAL COUNCIL AGENDA_SEPT 2006 9/1/2006 11,09 AM REGIONAL COUNCIL C) 11IIII1 PAGE # TiME 6.0 ACTION ITEMS (continued) 6.4 Communitv. Economic & Human Development Committee (CEHD) Report Hon. Paul Bowlen, Chair 6.5 Communications & Membership Subcommittee Report Hon. Glen Becerra, Chair 6.5.1 Annual Update of SCAG's Communication Strategy Attachment 222 6.6 Southwest Compact Task Force Report Hon. Jon Edney, Chair o 7.0 INFORMATION ITEMS 7.1 State of the Motion Picture Industry Attachment Hon. Dennis Washburn 239 An analysis was prepared to examine the industry in the region and provide recommendations based on those findings. 8.0 CLOSED SESSION A closed session will be held only if necessary to report significant developments or to take required actions. 8.1 Ratification of Executive Committee Rej)ort on Performance Evaluation of the Executive Director Pursuant to Government Code &54957(b)(l) 9.0 EXECUTIVE COMMITTEE REPORT 9.1 Salary and Compensation of Executive Director v ~ SOUTHERN CALIFORNIA ASSOCIATION of GOVERNMENTS #126498 vI - REGIONAL COUNCIL AGENDA_SEPT 2006 9/112006 II :09 AM REGIONAL COUNCIL .- ) PAGE # TIME 10.0 FUTURE AGENDA ITEMS Any committee member desiring to place items on a future agenda may make such request. Comments should be limited to three minutes. 11.0 ANNOUN'CEMENTS 12.0 ADJOURNMENT The next meeting of the Regional Council is scheduled for October 5, 2006 at SCAG offices in downtown Los Angeles. () ) vi ~ SOUTHERN CALIFORNIA ASSOCIATION of GOVERNMENTS # 126498 v I . REGIONAL COUNCIL AGENDA_SEPT 2006 911/2006 II ,09 AM NATIONAL LEAGUE OF CITIES . HUMAN DEVELOPMENT (HD) STEERING COMMITTEE MEETING SEPTEMBER 14-16, 2006 Hotel Hilton Vancouver Washington 301 West 6th Street Vancouver, Washington 68990 (360) 993-4500 Presidinq The Honorable Karen Geraghty Councilor Portland, Maine NLC Staff Pamela Konde Senior Policy Analyst Phone: (202) 626-3068 Fax: (202) 626-3043 NATIONWil:AGUEOF,CITIES HUMAN DEVELOPMENT,'STE-ERlNGCOMMITTEE PRELIMINARY AGENDA "':-, c. ....-.... .-.....>.-_..' :......:.'_..._ ',1':..." ;.- ::-:,' .-:". "-'>"'::-' -- -"..- Septemberl4~16, 2006 Vancouyer,:'VVashington Chair: Councilor Karen Geraghty~ Portland, Maine Host: Council Member Jeanne Harris Thursdav, September 14, 2006 6:00 p.m. Welcoming Reception Fridav, September 15, 2006 8:00 a.m. Breakfast and welcoming remarks 8:30 a.m. - Noon SESSION I: Education Reform "No Child Left Behind Act" (NCLB) . Task Force Report: Charleta Taveres, Council Member, Columbus, Ohio Chair, NCLB Task Force . Panel speakers and discussion: o Donna Foxley, Secretary's Regional Representative, U.S. Department of Education o Joel Packer, Manager, ESEA Policy, National Education Association o Doug Goodlett, Administrator for Education Reform, Vancouver School District o Robert Seidel, Director, Government Resources, Communities In Schools Noon Lunch 2 1:00 p.m. - 5:00 p.m. 6:00 p.m. SESSION I, contin.ued Review NCLB Task Force Draft Reconnnendations Review Resolution submitted by the Women in Municipal Govennnent (WIMG) on universal pre-school Dinner Saturdav. September 16.2006 8:00 a.m. 8:30 a.m. - 10:00 a.m. 10:00 a.m. - 11 :00 a.m. 11 :00 a.m. - 11 :30 a.m. 11 :30 a.m. - Noon Noon Working Breakfast Legislative Update: Leslie Wollack, Principal Legislative Counsel SESSION I~: Health Care Long-Term Care Costs -- Review draft policy Flu Pandemic - Review draft resolution Review Resolutions SESSION III: Immigration Update on action by NLC Board of Directors Discussion of other NLC actions on innnigration Reports NLC Board of Directors Report Charleta Tavares, Council Member, Columbus, Ohio NLC Advisory Council Report Rozelle Boyd, Councilor, lndianapolis, Indiana Adjournment o .J '. RIVERSIDE COUNTY TRANSPORTAtION COMMISSION www.rctc..org AGENDA * * Actions may be taken on any item listed on the agenda 4:00 p.m. Thur$day, September 14, 2006 ., Embassy Suites Hotel La Quinta 50-777 Santa Rosa Plaza, La Quinta In compliance with the Amei'icans with Disabilities Act and Government. Code Section 54954.2, if special assistance is needed to paiticipate in a Commission meeting, please contact the Clerk of the Board at (951) 787-7141. Notification of at least 48 haurs priar ta meeting time will assist staff in assuring that reasanable arrangements can be made to pravide accessibility at the meeting. . 1. CAll TO ORDER 2. PLEDGE OF AllEGIANCE 3. ROll CAll 4. "PUBLIC COMMENT~ (Items not listed on the agenda) 5. APPROVAl OF MINUTES - JULY 12,2006 6. "'ADDiTI()NS/REVISIONS' lThf/Com'fi,/sslon"may add an lt~m'.to the Agenda after making a finding that there is a need to take immediate action on the item and that the item cam~te,,#w;atteption ofthe Cgmrnis~(ofl subsequent tQ the posting of thffagenda. An action adding an item to the agenda requires 213 vote of the Commission. If there ate less,tlf{aTl 2/3 of the . Commission members present, adding an item to the agenda requiies Cl. unanimous vote, Al/declltemswi".b,e.plaf,(Jd f.QF discussion at the end.of the agenda.) " 7. . CONSENT CALENDAR. " All matters on the Consent Calendar will be approved in a single motion unless a Commissioner(s] requests separate action on specific item{$). Items pulled from the Consent Calendar will be placed for discussion at the end of the agenda. . Riverside County Transportation Commission Agenda September 14. 2006 Page 2 7A. TRANSPORTATION UNIFORM MITIGATION FEE FINANCING THROUGH STA:rEWIDE COMMUNITY INFRASTRUCTURE PROGRAM Overview Page 1 This item is for the Commission torec.eive and file the status report on Transportation Uniform Mitigation Fee (TUMF) financing through Statewide Community Infrastructure Program (SCIP). 78. QUARTERLY FINANCIAL STATEMENTS Overview Page 3- . This item is for the COmmission -Financ.ial Statements for the June 30, 2006. to receive and file the Quarterly twelve-month period ended 7C. QUARTI;Rl Y INVESTMENT REPORT . OverView Page 11 This item is for the Commission to receive and file the Quarterly Investment Report for the quarter ended June 30, 2006. 70. SINGLE SIGNATURE AUTHORITY REPORT . Page 21 Overview This item is for the Committee to. receive:. and . file th~Sing!Ei~ignature Authority Report for the fourth quarter endedcJtiM'3'O;.200e: .:' . 7E.' INTERFUND LOAN ACTIVITY REPORT Overview Page 23 . This item is for the Corr;mission to receiVe and fllef.hell1f.erful1d Loan Activity Report for the fourth quarter ended June 30, 2006. ; .,. . \;;',', .i'.' c' Riverside County Transportatiory Commission Agenda September 14. 2006 Page 3 7F. STRATEGIC PARTNERSHIP ADVISORY SERVICES CONTRACT INCREASE Overview Page 25 This item is for the Commission to: 1) Approve a $400,000 increase for Strategic Partnership Advisory Services and amendments, as necessary; to, Agreement Nos. 06-66-026cOO,06:'66-027-00 and 06-66-028-00; and 2) Authbrize the Chair, pursuant to legal bounsel review, to execute the agreements on behalf of the, Comrnission. , , 7G. OBLIGATION AUTHORITY LOAN TO SAN BERNARDINO ASSOCIATED GOVERNMENTS Overview Page 27 This, item is for the Commission tb receive and file the Obligation Authority Loan Report. ' " " , . ,: .' :', .:: ".<' '7H., TRANSt>ORTATION UNIFORI\1fMITIGimONFEEREGIONAl ARTERIAL PROGRAM ~QUA'RTERL Y REPORT Overview Page 31 This item is for the Commissiohtoreceiveand 'fil'e'the Transportation , , , UnifOrm Mitigation Fee (TUMF) Regional Arterial Program Quar1:erly Report. '" ,'K'':; h.:.'" ~.' : ',-,.1. . ."-'. ":,,:: . t:;..i.:- Riverside County Transportation Commission Agenda September 14, 2006 Pa.ge 4 71. CITyqF CORONA TRANSPqRTATION UNIF<;lRMI\IIITIGATIONFEE REGIONAL ARTERIAL PROGRAMMING REQUEST FOR GREEN RIVER ROAD AND El CERRITO ROAD PROJECTS Page 35 Overview . This item is for the Commission to: 71 1) . . . . APwove reprogramming of Transportati()n Uniform Mitigation Fee (Tl)MF) funds for the. Gre.enRiver Roac:l, project to include $200,000 for the environment~1 phase, $600,000 for the design phase,. and $3,442,000 for construction; Approve extending limits on the Green River Road project to Palisades Drive for plans, specifications, and cost estimate (PS&EI design work only; Approve TUMF Regional Arterial Program funds for construction. of the Green River Road project from State Route 91 to Dominguez Ranch Road; Approve AgJeement No.06-72-639~01, Amendment No. 1 to Agreement No. 06~72-639, to reflect the above changes; Approve Agreement. No. 07-72-038-00 for programming of. $1 million)n TUfv1F funtls dor. the El. Cerrito Hoaf;i/k15. Interchange improvement project to include $120;000 previously programmed for right-of-way and $880,000 in additional. funding for the construction phase; 'Authoriz~ the Chair, pursuant to legal counsel review, to execute. thfil agre.ements on behalf of the Commission; and ApprOVfil.an amendment to the FY 2006/07 budget in the amount of $1.3 million. 21 31 41 51 61 7J. MEMORANDUM OF UNDERSTANDING BETWEEN RIVERSIDE COUNTY TRANSPORTATION COMMISSION AND CITY OF BLYTHE REGARDING' STATE TRANSPORTATION IMPROVEMENT .PROGRAI\II INTRA-COI,JNl''Y FORMULA FUNDING Page 41 Overview . This item is for the Commission to approve Memorandum of Understanding (MOUINo. 07-71-028 with. city of Blythe (Cityl trading a total of $2,291 ;656 of State Transportation hl1provement Program (STIP) Intra-county Palo Verde Valley formula funds with Measure A Western County highway funds. Riverside County Transportation Commission Agenda September 14. 2006 ' . Page 5 TK. FISCAL YEAR 2007/11 MEAsURE A FIVE-YEAR CAPITAL IMPROVEMENT PLAN FOR lOCAL STREETS AND ROADS FOR THE CITIES OF lAKE ELSINORE, NORCO AND RANCHO MIRAGE Page 46 Overview , This item is for the Comrhission to approve the FY 2007/11 Measure A , Five-Year Capital Improvement Plan for local Streets and Roads for the cities of Lake Elsinore, Norco and Rancho Mirage as submitted. 7L. fiSCAL "YEAR ,2006/07 lOCAL TRANSPORTATION FUNDS AllOCATION FOR lOCAL STREETS AND ROADS' FOR THE PALO VERDE VAllEY APPORTIONMENT AREA Page 67 Overview This item is for the Commission to approve the allocation of FY 2006/07locClI Transportation Fund (L TFj funds for loc'll streets and roads purposes in the Palo Verde Valley ,area all shown on the attached table. < 7M. COMMUTER RAil PROGRAM UPDATE Page 70 Overview Thill item is for the Commission to receive and file the Commuter Rail Program Update. """\ 1N..JNTERSM TE$.15/215 FREEWAy: 'AUGI\IiENTA TION 'PROJECT , TRAFFIC DETECTION Page 76 Overview This item is for the Commission to: 1) Authorize the Executive Director toenferinto. a, Cooperative Agreement No. 07-41.037-00 with Caltrans for the 1-15/1-215 Freeway Traffic Detection l;lugmentation project; and, 2) Approve an amendment to the FY 2006/07 budget in the amOllrit of $2.3 million. ' RiverSide County Transportation Commission Agenda September 14. 2006 Page 6 70. STATE ROUTE 91 COMMUTER EXPRESS BUS - ROUTE 794 DEMONSTRATION PROJECT Page 81 . Overview This item is for the Commission to approve the request from the Riverside Transit Agency {RT Al for the .Commission to provide 100% of the RTA's share in the operation of the Route 794 demonstration project costs, using Commuter Assistance Ml':!asureA funds, in an amount not to exceed $120,000 for FY 2006/07. .. . .. 7P. FISCAL YEAR 2006/07 STATE TRANS,t ASSISTANCE .FUNDS Page 87 Overview This item is for the Commission to receive and file the report On State Transit Assistance {STAI funding apportionments. 7G.FISCAl YEAR 2006/07 SHORT RANGE TRANSiT PLAN AMENDMENT~ RIVERSIDE tRANSIT AGENCY Page 90 Overview , This item is for the Commission to: 11 Allocate _$3,888 in local Transportation FundiLTFI funds to RiVerside Transit Agehc:y{RTAI toc:.over additional operating costs; Receiv~ andfilE,l,}~ r~port on impl~menta~i?pof<~ ,l,Ipive~s,ityPass Program with tHe University of ~ivElrliide,C~liforhi" ,{pCR);and ".' i:"';:' ,,',', /,1'":,,.:,:-__ "_-.:",,,.-,'., , Amend RTA'sFY 2006/07 Short RimgeTransif Plan {SRTPI to reflect theser"ice changes, contingent uPQ!'IQ.ompliance with Productivity Improvement P~ogram (PIP) targ~ts,'asvvell as the implementation of the Univer$ity Pas,s I?rogram and implementation of Route 794, . an express bus servibe . along State Route 91. 21 31 Riverside County Transportation Commission Agenda September 14. 2006 Page 7 7R. FISCAL YEAR 2006107 SHORT RANGE TRANSIT PLAN AMENbMENT~ SUNLlNE TRANSIT AGENCY Page 93 Overview This item is for the Commission to: 1) Allocate $833,657 in Local Transportation Fund(L TF) funds to Sun Line Transit Agency (SunLine) d\le to a shortfall in federal funding and $25,000 in .LTF for development Of a Facilities Design Manual;. . 2) Approve Sun Line's request torepr<>gram funding to purchase ten replacement and five expansion vehicle!>; an~ 3) Reprogram $194,317 in State Transit Assistance (STA) funds and $777 ,270 in Federal Transit Administraticln (FTA) funds to purchase two expansion vehicles. 7S. FISCAL YEARS20Q6107AI\ID 2007/<m CALL FOR PROJECTS: MEASURE A SPECIALIZED TRANSPORTATION PRQGRAM - WESTERN RIVERSIDE COUNTY " Page 96 Overview This item is for the Commission to: 1 ) Approve the requests fOT Measure A Specialized Transit funds aVailable in Western Riversi~eCounty for: . · Blindness Suppqrt, ,Agreement Nq.01-26-023-00 .. VOlunteer Center, ,l\,QfEletl)entN<>; 07-2f?:q,2r-OO . Whiteside Manor, 'Agreemellt.No..Ot-2I';h024-00 in an aggregate amount ~qqoexceed$3i3,364 in FY 2006/07 and $317,174 inFY200/IQS: .... .. . Approve interim funding In . thE! . amOunt of $32,500. for Care Connexxus, Agreement No. 07-26-022-00, c.overing the months of October through December 2006. Interim funding will enable the agency's services to continue without interruption; Authorize the Executive Director,: pursuant to legal counsel review, to enter into funding agreements as appropriate; and Direct staff tq develop a specialized transit program geared towards on-going chemotherapy, radiation and dialysis treatment. 2) 3) 4) Riverside County Transportation Commission Agenda , September 14, 2006 ' Page 8 n. COOPERATIVE AGREEMENt NO. 07-72"030-00 WITH THE CITY OF CORONA FOR THE FUNDING AND PREPARATION OF A PROJECT REPORT/ENVIRONMENTAL DOCUMENT FOR THE CAJAlCO/ INTERSTATE 15 INTERCHANGE Page 106 Overview This item is for the Commission to: 1) Approve Cooperative Agreement No. 07-72-030-00 between the city of Corona and the Commission for the preparation of a _ project report and environmental document (PR&ED) for the Cajalco/I-15 Interchange; and ' 2) Authorize the Chair, pursuant to legal counsel review, to execute this Agreement on behalf of the Commission. 7U. AGREEMENT NO. 03-31-014-03 WITH CI-IONG PARTNERS ARCHITECTURE TO PREPARE CONSTRUCTION, PLANS . FOR A pARKING STRUCTURE FOR THE, NORTH MAIN CORONA METROLlNK STATION Page 115 Overview, This item is for the Commis'sion to: 1 ) Approve _Agreement No. 03-31-014-03, Amendment No.3 to Agreement No. 03-31-014, with Chong Partners Architecture Inc. to p. repare plans, specifications and cost estimate (PS&E) 'for the . '. ,- -.. - ,. . ad.ditional amountcif$141,225, including a .three-month calendar extension to contractterrn, and a total not to exceed amount of $1,451,228; and. ". ",,' ' " ' . ' .,' Authorize the Chair; pursuant to legal counsel review, to execute the aweement on behalf of the Commission, 2) Riverside County Transportation Gommission Agenda September 14. 2006 Page 9 7V. AGREEMENTS WITH PARAGON PARTNERS, db;,,' OVERLAND PACIFIC CUTLER, INC., AND, EPIC lAND SOLUTIONS, INC. ,FOR ON-CALL RIGHT-OF-WAY ACQUISITION AND RELOCATION, REAL PROPERTY SEARCHES, IDENTIFICATION AND fEASIBILITY STUDIES FOR REPLACEMENT AND MITIGATION SITES, COST ESTIMATES, AND UTILITIES RELOCATION SERVICES Overview ' Page 123 This item is for the Commission to: 1) Award Agreement No. 07-72~025-00 to Paragon Partners, Ltd., , Agreement No. 07-72-026-00 to Overland Pacific Cutler, Inc., and Agreement No. 07-72-027-00 to Epic Land Solutions, Inc. to perform On-Call Right-of-Way (ROW) Acquisition and Relocation, Real Property Searches, Identification and Feasibility Studies for Replacement and Mitigation Sites,' Cost Estimates, and Utilities Relocation Services (ROW services); 2) Authorize the Chair, pursl,lant to leg<;il counsel review, to execute tl1eagreementson behalftif the Commission; and 3) Approve an amen~ment to the FY2006/07 budget in the amount of $300,000. 7W. AMENDMENT TO, AGREEMENT FOR MAINTENANCE 01" THE CLOSED CIRCUIT TELEVISION SECURITY SYSTEMS AT THE METROLlNK STATIONS Overview ,Page 146 'This item is for the 'Commission ,to 'approvii Ag'reement No. '04-25-962-02, -Amendment No.2 to Agreement No. 04-25-962', with Inland Vault & Security, Ihe; forClosedCi!,(:uit TelevisiOn (CCTV) 'Security Systems Maintenance' Setvicasto amend the term and' rates of the agreement.' - " Riverside County Transportation Com~ission Agenda September 14, 2006 Page 10 8. STATE AND FEDERALI.EGISLATIVE UPDATE Overview Page 130 This item is far the Commission to: , 1) Adopt the following pasitions on statewide ballot propositions: Prapositions 1 A & 1 B - SUPPORT Proposition 90 - OPPOSE; and 21 Direct staff to issue a Request far Qualifications (RFQI for federal legislative advocacy services. . . 9. FORWARD INTEREST RATE SWAP TRANSACTION Overview This item .is for the Commission to receive an .oral report an the Farward Interest Rate Swap Transac;tion. 10. PRESENTATION - NEW COMMUTER EXCHANGE MOBILE EDUCATION VEHICLE Page 138 This item is for the Commission ta. receive a presentation of the new Commuter Exchange Mobile Education Vehicle. 11. ITEMS. PUllED FROM CONSENT CALENDAR AGENDA 12. COMMISSIONERS I EXECUTIVE DIRECTOR'S REPORT Overview :. '..: ., ". . .." , . This item provides.. thep. p.portunity far the Commissioners and the Executive . ,. Director to report;. ana:ttel)ded meetings/c9nference~ and any ather items related ta Commission activities. ....... Riverside County Transportation Commission Agenda September 14, 2006 Page 11 13. CLOSED SESSION ITEMS A. CONFERENCE WITH lEGAL COUNSEL: EXISTING LITIGATION Pursuant to Subdivision (a) of Government Code Section 54956.9 r B. CONFERENCE WITH lEGAL COUNSEL: ANTICIPATED LITIGATION Pursuant to Subdivision (b) of Government Code Section 54956.9 CONFERENCE WITH lEGAL COUNSEL:. ANTICIPATED LITIGATION Pursuant to Subdivision (c) of Government Code Section 54956.9 C. D. CONFERENcE WITH REAL PROPERTY NEGOTIATOn Pursuant to Government Code Sectior:l 54956.8 Negotiating Parties: RCTC - Executive Director or Designee Property Owners - See List of Property Owners Item APN Property Owner(s) 1 932-170-018 Biggerstaff .2 362-130-019 Borchard Portion of 362- i 30-01 0 . . 3 932-020-002 Austin Murrieta 4 569"O4()-007 SSR Investment Co., LP 569-040-031 13. ADJOURNMENT The next'Commission meeting is scheduled to be held at 9:00 a.m., Friday, September 15, 2006, Embassy SUites Hotel La Quinta, 50"777 Santa Rosa Plaza, La Quinta. , RIVERSIDE COUNTY TRANSPORTA TION COMMISSION www.rctc.org WORKSHOP AGENDA * * Actions may be taken on any item listed on the agenda 9:00 a.m. Friday, September 15, 2006 MEETING ROOM Embassy Suites Hotel La Quinta 50-777 Santa Rosa Plaza, La Quinta In compliance with the Americans with Disabilities Act and Government Code Section 54954.2, if you need special ass/stance to participate in a Commission meeting, please contact the Clerk of the Board at (951) 787-7141. Notificat/on of at least 48 hours prior to meeting time will assist staff in assuring that reasonable arrangements can be made to provide accessibility at the meeting. . 9:00 - 9:15 a.m. WELCOME AND WORKSHOP OVERVIEW Mar/on Ashley, Chair Eric Haley, Executive Director 9:15 - 9:45 a.m. BOTTOM LINE REPORT ON GOODS MOVEMENT Stephanie Wiggins, Regional Programs D/rector This item is for the Commission to: 1) Receive and file the presentation of the RCTC Goods Movement Bottom Line Report; 2) Approve the Southern California National Gateway Memorandum of Understanding (MOU) No. 07-67-041-00; and 3) Authorize the Chair, pursuant to legal counsel review, to execute the MOU on behalf of the Commission. 9:45 - 10:30 a.m. GRADE CROSSING FUNDING STRATEGY Stephanie Wiggins, Regional Programs Director 10:30 - 10:45 a.m. BREAK 10:45 - 11:15 a.m. PERRIS VALLEY LINE PROJECT UPDATE Stephanie Wiggins, Regional Programs Director John Standiford, Public Affairs Director 11:15 - 11:30 a.m. WESTERN COUNTY TUMF I WESTERN RIVERSIDE COUNCil OF GOVERMENTS MOU Er/c Haley, Executive Director This item is for the Commission to: 1) Direct the Executive Director to formally request the Western Riverside Council of Governments (WRCOG) to adjust in future payments to the Commission based on an existing Memorandum of Understanding (MOUl between the Commission and WRCOG that clarifies the relationship between Measure A and the Western Riverside County Transportation Uniform Mitigation Fee (TUMF); and 2) Return to the Commission and the Governing Board of WRCOG for approval of the MOU Amendment that would secure a proportional amount of funding to be provided for regional arterials from the Western Riverside County TUMF. 11 :30 a.m. - 12:00 p.m. lUNCH 12:00 - 12:30 p.m. PRESENTATION - MARK WATTS, COMMISSION lOBBYIST 12:30 p.m. ADJOURNMENT The next Commission meeting is scheduled to be held at 10:00 a.m., Wednesday, October 11, 2006, Board Room, County of Riverside Administrative Center, 4080 Lemon Street, Riverside. ITEM NO. 49 Approvals City Attorney Director of Finance City Manager ~ IJIl !/ CITY OF TEMECULA AGENDA REPORT TO: City Manager/City Council FROM: Anthony Elmo, Director of Building and Safety DATE: November 14, 2006 SUBJECT: Departmental Report - September 2006 The month of September 2006 showed a gain of construction activity as compared to previous months. The following is an overview of permit and inspection activity for September. M.O.M. ProQram The Community Development Technicians distribute M.O.M. packets which include a building permit application and an outline of the minimum plan review requirements. The Building and Safety Staff initiated 9 M.O.M related phone calls in September to customers for plan submittals, plan checks, issuance of permits, addressing and certificates of occupancy. SinQle Familv Development - Tracts In September, the City issued 32 new single family home permits for a total square footage of 114,750. These homes are primarily in Wolf Creek with 168 homes and 172 homes under construction in Harveston. There are a total of 448 single family homes under construction throughout the City at the current time. Custom SinQle Familv Homes As of September, we have 15 custom homes under construction for a total of 69,989 square feet. Multi-Familv Development In September there were a total of 130 apartments/condominiums under construction. Temecula Ridge Apartments has 3 buildings with a total of 36 units under construction. Temecula Creek has completed most of their condominium construction and have 3 buildings with 60 units under construction. Commercial Development There were 4 new commercial permits issued in September for a total valuation of $5,157,889.09. Plan check activity included submittals for Butterfield Ranch Self Storage located at 43920 Butterfield Stage Road, Star World Center at 28865 Old Town Front Street, and Carpet One at 30643 Highway 79 South. Total Permit and Inspection Activitv During the month of September inspection staff performed 5,027 inspections and 284 permits were issued representing a construction valuation of $15,714,065.38. The total building permit and plan check fees collected in the month of September were $181,377.68. ITEM NO. 50 Approvals City Attorney Director of Finance City Manager ~ /)12. ~ CITY OF TEMECULA AGENDA REPORT TO: City Manager/City Council FROM: William G. Hughes, Director of Public Works/City Engineer DATE: November 14, 2006 SUBJECT: Department of Public Works Monthly Activity Report RECOMMENDATION: Receive and file the attached Department of Public Works Monthly Activity Reports for the month of September, 2006. CAPITAL IMPROVEMENT PROJECTS Monthly Activity Report September I October 2006 Prepared By: Amer Attar Submitted by: William G. Hughes Date: October 24, 2006 PROJECTS UNDER CONSTRUCTION 1. Fire Station - Northeast Site (Roripaugh Ranch) This project will construct a new fire station in the north part of the City. The majority of work was completed by April of 2006. 6 to 9 months time is estimated before the Roripaugh Developer (Ashby) can provide access and utilities to the site. Because of this there was cost to re-mobilize and complete the project when the aforementioned items are complete and these costs reflected in the approved change order total. Ashby is responsible for these additional costs. In addition, a fire engine/truck venting system (requested/added on 2/06) will be installed when the Contractor is re- mobilized and this cost is also included in the approved change order total. 2. Patricia H. Birdsall Sports Park A new 40+ Acres sports complex will be built at the corner of Pechanga Parkway and Deer Hollow Way. Bids were opened on September 16, 2004. The contract was awarded to Douglas E. Barnhart, Inc. at the September 28, 2004 Council meeting. The contract award amount is $13,365,055.51. An extensive 'punch list' has been developed, consisting of minor remaining contract item work (installation of soccer field misters, basketball court and parking lot striping, completing installation of resilient surfacing and sandlwood chips at play area, installation of bike racks), minor corrective work on previously installed improvements, and completion of various Architect-issued Bulletin work. 3. Patricia H. Birdsall Sports Park Synthetic Turf As part of the sports park project, a separate contract to install synthetic turf on four fields, three soccer fields and a championship field that includes football overlay, was awarded to Byrom-Davey. Project acceptance is postponed until the contractor completes all the required work on all the fields. 4. Temecula Library A full service library, approximately 34,000 square feet in area, has been designed and will be built on Pauba Road, just west of Fire Station #84. The City was successful in obtaining State grant to aid in funding the library. Carpet is currently being installed in the stacks area. Thewall coverings are about 90% complete and all painting is complete except for touch up work. The interior doors and window frames are installed. The low voltage work is ongoing and the data room connections are being made. The aluminum panel system is being installed and the ceiling tiles are being installed in the t-bar ceilings. Exterior landscape irrigation work is continuing as well as preparation for planting. 5. City Field Operations Center (Maintenance Facility and Corporate Yard) - Phase 1 Under this project, an expansion of the maintenance facility will be built on the property adjacent to City Hall. Western Rim Constructors (WRC) was awarded the project with a low bid of $636,094.80.The construction ofthis project has been completed. The 90 day maintenance period is finished. Project has been accepted by TCSD. The last invoice will be submitted shortly. As-built plans have been received by the City. Contractor just submitted the affidavit and final release form to the City. The project will go to council for final acceptance. 6. Pauba Road Improvements - Phase II (Margarita Road to Showalter Road) This project will widen Pauba Road from. Showalter to just west of Margarita Road to its ultimate width. Bids were opened on 01/09/06. Apparent low bidder was Grade Pros Inc. DBA McKenna with a bid amount of $1,367,663.15.The construction began on 02/27/06. The contractor has completed grading, utility relocation, curb, gutter, driveways, guardrail, paving, white fence and the new waterline. Final striping and opening of the new road to traffic occurred the week of August 14th. The contractor is working on finishing the sidewalk, relocating RCWD conflicts and Traffic Signal relocation. All work related to the new streetlights is complete and Edison has been requested to install them as soon as possible. 7. Pavement Rehabilitation Program - FY 200512006 This project will rehabilitate Diaz Road between Rancho California Road and Winchester road, including replacement of storm drain pipes. City Council awarded the construction contract to R.J. Noble Company on 03/28/06. Construction is essentially complete. The contractor is working on punchlist items. 8. Citywide Concrete Repairs FY 05-06 This project will remove and replace various concrete improvements including sidewalk, curb and gutter, cross gutters, driveways approaches, and under sidewalk drains. Contract was awarded on 03/21/06 and work began in the Redhawk area on 04/17/06. Contract work was completed on 06/15/06. .9. Temecula Education Center- Rough Grading This project will provide for the grading of the proposed T emecula Education Center. Project was awarded on 4/11/06. Construction started on May 1, 2006. Finish grading and the replacement of surcharge is complete. Yeager began demobilizing grading operations the week of July 10 and monitoring monuments were fully installed. CCO#1 to relocate/modify all impacted utilities along Diaz Road adjacent to the project was approved by the RDA Board on 10/10/06. Diaz Road cannot be brought up to grade and/or surcharged until these utilities are addressed. Additionally temporary drainage of the RCWD property has been revised and reviewed/approved by RCWD and we are in the process of getting a quote for the additional work through Yeager. 10. State Route 79 South Medians Under this project medians will be constructed on Route 79 South within the City of T emecula limits. A pre-construction meeting was held on May 9th. The contractor started working the week of May 22nd. The Contractor is currently finishing up the concrete work from Margarita Road to Butterfield Stage Road. Once this concrete work is completed, the Contractor will start removing the asphalt pavement from Pechanga Parkway to just west of Margarita Road. 2 11. Rancho California Median Modifications This project will add an additional through-lane on Rancho California between Ynez Rd & 1-15. A portion of the existing landscape median will be eliminated/ modified. This project will add an additional through-lane on Rancho California between Ynez Rd & 1-15. A portion of the existing landscaped median will be eliminated; no additional right of way is needed. Timeline includes: design contract awarded 12/13/05, authorization to solicit bids 3/21, bids due 4/24, awarded contract 5/9, Pre-Con meeting 5/24; construction started 6/19 & ended 7/26. Paperwork to accept this project is being processed. 12. Bridge Fencing Fences will be installed on bridges over 1-15. Proposed fencing locations are the eastbound sides of the Overland Drive and Rancho California Road bridges over Interstate 15. Construction bids were opened on 04/20/06. City Council awarded the contract on 05/09/06. Construction began on 07/17/06 and is essentially complete. 13. Traffic Signal Installations - Jefferson Ave. at Sanborn Ave. & Redhawk Parkway at Overland Trail/Paseo Parallon Under this project, two new traffic signals will be installed; one at Jefferson Avenue and Sanborn and the second one is at Redhawk Parkway and Overland TraillPaseo Parallon. The contract was awarded to HMS Construction on 6/27/06. Status of signal pole order: pole delivery is anticipated 9/22/06. The pre-construction meeting was held on 8/28/06, and Underground Service Alert and initial project layout was done during the week of 9/4/06. Notice to Proceed was issued on 9/25/06. Construction did not begin until 10/4/06 because the Traffic Control Plan was not complete and approved. The new estimated completion date is 10/31/06 for both signals. 14. City Field Operations Center (Maintenance Facility and Corporate Yard) - Phase 2 This project will construct the second phase of the City's Field Operation Center, which include the building. SCE advised that the existing conduit to City Hall transformer may be used for primary electrical feed. The project was awarded on July 25th, a preconstruction meeting was held on 8-10- 06 and the Notice to Proceed was issued effective 8-11-06. Work started on 8-14-06. Project is under construction, building pad is certified, and site/ underground utilities and CMU site wall are close to completion. 15. Rancho Vista Road Sidewalk This project involves design and environmental clearance of a new sidewalk along the south side of Rancho Vista Road between Ynez Road and Mira Loma Drive (east). The contract was awarded by City Council on 06/27/06. Construction began on 08/21/06. Approximately 90% of the concrete sidewalk and access ramps are constructed. About 50% of irrigation and landscape modifications are complete. A retaining wall and the balance of sidewalk and landscape work will be addressed upon completion of utility relocations. Estimated completion is November 2006. 16. Slurry Seal Project FY 2005-2006, Redhawk Area This project includes cleaning & sealing cracks in the road surface, removal & replacement of all pavement delineation, furnishing & installing Rubberized Emulsion - Aggregate Slurry (REAS) Type II & all necessary traffic control. There are approximately 3,571,850 sf of roadway involved. Timeline: Bid auth 1/24/06, bids opened 2/21/06, awarded 3/21, Pre-Con meeting 4/13. Project 3 began Monday, 5/15. Work was completed Aug 20, 2006. Contractor is to submit invoice no. 2. 17. Erie Stanley Gardner Exhibit This project will create an exhibit for the famous author. Newly down-scoped construction plans were submitted by the architect and the project was bid. Bids were opened 08/01/06 and the contract was awarded on 09/12/06. The preconstruction meeting is forthcoming. 18. Citywide Concrete Repairs Phase 1, FY 06-07 This project will remove and replace various concrete improvements including sidewalk, curb and gutter, cross gutters, driveways approaches, and under sidewalk drains. The preconstruction meeting is forthcoming. PROJECTS Bt;:ING ADVERTISED FOR BIDS NONE PROJECTS IN DESIGN 1. Pechanga Parkway Improvements - Phase II (SR 79 South to Pechanga Road) This project will widen Pechanga Parkway (formerly Pal a Road) to its ultimate width from the Pechanga Parkway Bridge to Pechanga road. Caltrans (Local Assistance) has approved the noise, traffic, and HPSR-ASR studies. The City completed CEQA-NOD process for the project. The Particulate Matter Conformity Analysis for Pechanga Parkway Phase II was approved by SCAG at their June 27 meeting. The Environmental Document (ED) was submitted to FHWA for review on September 27. FHWA should complete their review in about 4 weeks. When FHWA approves the ED, the City can begin the final Right of Way acquisition phase and submit the PSE Package to Caltrans (Local Assistance) for their review. Once the City receives a letter of Authorization for construction from Caltrans (Local Assistance), the City can start the public bidding process for construction. 2. Murrieta Creek Bridge - Overland Drive Extension to Diaz Road This project will entail alignment studies and the design of an extension of Overland Drive, westerly to Diaz Road, which includes a new bridge over Murrieta Creek. The project includes the widening of Overland Drive from Jefferson Avenue to Commerce Center Drive, and the extension of Overland Drive across Murrieta Creek to Diaz Road. Coordination with RCFC & WCD and the Corp of Engineers is required. Various utility companies and other City departments submitted comments to public works for review. Final comments by public works, utility companies and other City departments will be sent to the consultant within the next couple of weeks. 3. Fire Station - Wolf Creek Site A 9,062 SF fire station will be built @ the corner of Wolf Valley Rd & Wolf Creek Dr South. Vanir is 4 performing CM serviCes. Timeline: Out to bid on 6/14; bids opened 7/11; awarded 7/25; Pre-Con Mtg held on 8/15, NTP 8/16. RC Construction's contract is for $3,591 ,000. This is a 260 working day project. Installation of underground utilities (i.e., sewer, electrical, etc.) is progressing. Submittals and RFI continue to be processed. Excavation of bldg footprint will continue. CM trailer is onsite without utilities. 4. Murrieta Creek Multi Purpose Trail This project will build portions of the equestrian and bike trails along Murrieta Creek within City limits. The City has received a federal grant of $1 ,214,000. The signed Programmatic Categorical Exclusion (approved environmental document) was received from Caltrans on April 15, 2005. The mylars were delivered to the City at the beginning of September 2006 for signature and advertising for bids. The City has received construction authorization from Caltrans. Authorization to bid the project from the City Council was received at the 9/12/06 meeting and the project will be bid in the next few weeks. With the receipt of mylars, the City can now apply for an encroachment permit from the Riverside County Flood Control District. This application is being worked on. 5. Rancho California Road Widening, Old Town Front Street to 1-15 (Southside) This project will provide a right turn lane for southbound 1-15 motorists and provide a dual left turn lane from westbound RCR to southbound Front Street. We have submitted the final plans to Caltrans and anticipate receiving a permit in October to start construction. Caltrans delayslissues have impacted the scheduled start date. Union 76 and Denny's have approved their right of entries.. 6. Main Street Bridge Over Murrieta Creek (Replacement) This project will replace the existing Main Street Bridge over Murrieta Creek. Design consultant Simon Wong Engineering (SWE) and the City are continuing to pursue environmental permitting and coordination issues associated with pursuing the bridge replacement as a project separate from the Corps of Engineer's channel improvement project. SWE has also revised their original design proposal for this project in light of these additional efforts required; additional funding will be required to cover these revisions. A meeting was held with SWE on 3/16/06 to discuss the revisions and compare to scope of original contract; SWE's contract to be extended through December 2007. A notice was received that anticipated Federal funding for this project was programmed for Federal Fiscal Year 2010/2011, which could have serious ramifications to the project. Alternatives to FFY programming decision are being pursued; no significant changes since last month. 7. Diaz Road Extension to Cherry Street This project was previously "On-hold'" pending data from Riverside County Flood Control. With the construction of the proposed Education Center, this project has become developer driven. Plans have been routed to various utilities for identification of possible conflicts and to Riverside Flood Control and Army Corp of Engineers for verification that the proposed roadway is in conformance with the proposed detention basin within Murrieta Creek. 8. Santa Gertrudis Bicyclel Trail Undercrossing at Margarita Road This project will construct a trail for. bicycles and pedestrians along Santa Gertrudis Creek under Margarita Road. Data regarding existing utilities are being incorporated into the design. Consultant is continuing the environmental permitting process and incorporating 100% plans comments. 5 9. Western Bypass Corridor Alignment Study This project will provide for an alignment stud for the Western Bypass Corridor. The City's design Consultant, URS, is doing the preliminary work for the alignment study. Once the preliminary work is complete a preferred alignment will be chosen and then a complete study will be done and completed. We have met with both the City of Murrieta and RCWD to coordinate the design ofthis project. 10. Western Bypass Bridge Over Murrieta Creek This project involves the design and environmental clearance of a new bridge over Murrieta Creek at the terminus of SR-79S and an extension of Pujol Street to the new structure. Once constructed, this will serve as the southerly connection of the Western Bypass Corridor. The kickoff meeting was held on July 26. Phase 1 work continues, including updating bridge general plan and roadway geometrics, securing entry permits for geological investigations (USACE, CDFG, MWD), conducting biological surveys, and initiating hydraulic modeling. 11. Redhawk Park Improvements, Four Sites This project will add amenities to four park sites in the recently annexed Redhawk area RJM is currently working on improving four different park sites in the Redhawk development area. A dog park is planned for one of the park sites. Two public workshops were held to get input from the community. The last one was on August 3, 2006. RJM is currently working on the design to improve the four park sites. A dog park is planned for one of the park sites. 12. Old Town Infrastructure Projects - Site Demolition and Site Prep On August e, 2006, City Council awarded design contract to RBF for the Site Prep and street improvements. RBF, the City's design consultant, has completed the base maps for the project and are coordinating their work with NMR the project Architects. Design efforts will be ongoing for the next several months. . 13. Old Town Infrastructure Projects - Underground Utility District Butsko Utility Design has been retained to assist with the formation of an underground utility district in the old area to eliminate the overhead wires along Main St. and portions of Old Town Front & Mercedes Streets. The City Council approved the resolution forming the underground utility district on October 10, 2006. SCE will now move forward with the design of their underground systems. This will take approximately 6-months to complete. 14. Old Town Infrastructure Projects - Street Improvements, Mercedes St (2nd - 6th) & the Realignment of Main St. This project will improve Mercedes Street and realign Main Street as part of the Civic Center project. On August 8, 2006, City Council awarded design contract to RBF for the Site Prep and street improvements. RBF, the City's design consultant, has completed the base maps for the project. RBF is working on preliminary alignment studies for the Mercedes/Moreno intersection. Design process will be ongoing for the next several months. 15. Old Town Infrastructure Projects - Parking Structure & OfficelRetail frontage This project will construct a parking structure, including and office and retail frontage as part of the overall Civic Center project. NMR, the City's design consultant, is completing the architectural 6 schemes and connectivity of the overall Civic Center site. Once the final decision on the scheme and connection points are finalized the design effort for the parking structure will commence in earnest. The field geotechnical investigation has been completed. A preliminary geotechnical report will be published in the next few weeks. 16. Old Town Infrastructure Projects - Civic Plaza Under this project, the plaza area for the Civic Center will be constructed. NMR, the City's design consultant, is awaiting design information from RBF the designer of the Main Street Realignment project. Once this data is in hand, the design of the plaza area will move forward. 17. De Portola Road Pavement Rehabilitation Project (from Jedediah Smith to Margarita) This project includes rehabilitating De Portola Road from Jedediah Smith Road to Margarita Road. An RFP went out and proposals were received on 09/19. We are currently negotiating with GFB- Friedrich on defining the scope of work and fee. This is a federally funded project, which will include going through the NEPA process. The PES Submittal/Application has already been forwarded to Caltrans. 18. Diaz Road Realignment to Vincent Moraga Under this project, Diaz Road will be realigned starting just south of Rancho Way to Vincent Moraga Road at Rancho California Road. Business Park Drive will be a T-intersection at Diaz. Staff is currently updating the plans and specifications. This project will be re-bid in October 2006. 19. localized Storm Drain Improvements This project will fix the drainage problem at the south end of Front Street (at the MWD easement). Baseline right of way, utilities, and mapping are established. This project is currently on hold. 20. long Canyon Detention Basin. Access Road This project will construct an access road to the Long Canyon Detention Basin. Plans and specifications are 90% complete. City is seeking FEMA funds to remove excess silt deposited within the basin before constructing the access road. Project is on hold until FEMA determination is finalized. 21. Bridge Fencing Enhancement This portion of the project will provide Architectural Enhancements to the recently constructed fencing at the Overland Drive and Rancho California Road bridges over Interstate 15. An Encroachment Permit Application was submitted to Caltrans on 09/07/06. 22. Pedestrian/Bicycle Bridge Over Santa Gertrudis Creek This project includes the construction of an approx. 200' ped/bike bridge over Santa Gertrudis Creek near Chaparral H.S. On 5/4, we received report identifying bridge alternates, costs & recommendations. Staff evaluated & routed the report to RCWD for their comments. RCWD offered their affected parcel to the City pending Board of Director's approval. The City would like to accept it; City's Property Agent is to meet with RCWD to discuss possible transfer. This is a federally funded project, which will involve NEPA documents. 7 23. Ronald Reagan Sports Park Channel Silt Removal & Desiltation Pond This project includes restoring the Best Management Practices (BMP) of the Stormwater Pollution Prevention Plan (SWPPP), the Water Quality Management Plan (WQMP) and the RWQCB by desilting the channel & pond located near the Sports Park. A US Army Corps of Engineers Nationwide Permit has been submitted and communication with the Department of Fish & Game is continuing. An RFP has been sent out seeking an Environmental Consultant to assist with the regulatory agencies. PROJECTS IN THE PLANNING STAGE 1. 1-151 SR 79 South Interchange - Project Report (PR) This project will modify the 1-15/ SR 79 South Interchange to accommodate projected future traffic. This is the next step of project development after the completion of the Project Study Report. City continued development of design geometrics and environmental technical studies. Status is as follows: ~ Design Exceptions - 6th Submittal is under Caltrans review. ~ Stormwater Data Report - 4th Submittal is to coincide with final PR Submittal. ~ Traffic Study - Approved 09/11/06. ~ Modified Access Report - 3rd Submittal is being prepared. ~ Geometric Approval Drawings - Under development. ~ Initial Study Assessment - Approved. ~ Acoustic Evaluation - Approved. ~ Air Quality Assessment - Approved PM10 and PM2.5. ~ Nat Environmental Study - Approved. ~ Cultural Studies - 3rd Submittal is being prepared. ~ Environmental Document - Under development. 2. French Valley Parkway Overcrossing and Interchange, Project Report (PR), Plans Specifications, and Estimate (PS&E) Preparation This project will construct an interchange between Winchester Road Interchange and the 1-15/1-215 split. The project is moving through the Caltrans process. The latest schedule was submitted to Caltrans for review. EAiIS has been submitted to Caltrans for approval. The utilities coordination with all utility companies is in process. Pot holing plans along with the 60% PS&E package have been submitted to Caltrans. Coordination with resource agencies is ongoing. 3. French Valley Parkway Phase 1 - Southbound Off-Ramp to Jefferson, Auxiliary lane, and Widening the Bridge over Santa Gertrudis Creek at the Winchester Southbound Off-ramp A southbound of-Ramp to Jefferson, an auxiliary lane, and widening the bridge over Santa Gertrudis Creek at the Winchester southbound off-ramp are the components of Phase 1. The City and Caltrans have agreed that immediate action is required to relieve congestion at the Winchester 8 Road southbound off-ram'p. The City submitted the 60% design package for phase 1 to Caltrans. Potholing plans have been prepared. Consultant is working on the environmental issues. The latest schedule has been submitted to Caltrans for review. Comments have been received for the 4th submittal of the EAlIS. 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" .. -' c o tl " 1D 00 E 2 " '" c o U '" " .2 ~ <0 o N ;; Ci.i "- $ TO: FROM: DATE: SUBJECT: MEMORANDUM Bill Hughes, Director of Public Works/City Engineer ~,,~ Brad Buron, Maintenance Superintendent October 9, 2006 Monthly Activity Report - September, 2006 The following activities were performed by Public Works Department, Street Maintenance Division in-house personnel for the rnonth of September, 2006: I. SIGNS II. TREES A. B. C. Total signs replaced Total signs installed Total signs repaired 46 22 27 A. Total trees trimmed for sight distance and street sweeping concerns 25 III. ASPHALT REPAIRS A. B. Total square feet of A. C. repairs Total Tons 4,218 53 A. IV. CATCH BASINS Total catch basins cleaned 150 A. V. RIGHT-OF-WAY WEED ABATEMENT Total square footage for right-of-way abatement o VI. GRAFFITI REMOVAL A. B. Total locations 40 2,443 Total S.F. VII. STENCILING A. 304 New and repainted legends B. .......Q L.F. of new and repainted red curb and striping R:\MAINTAIN\MOACTRPTI05.06\ Also, City Maintenance staff responded to ....QL. service order requests ranging from weed abatement, tree trimming, sign repair, A.C. failures, litter removal, and catch basin cleanings. This is cornpared to ~ service order requests for the month of Anl!:nst. 2006. The Maintenance Crew has also put in 132 hours of overtime which includes standby tirne, special events and response to street emergencies. The total cost for Street Maintenance performed by Contractors for the month of September. 2006 was $34.370.00 compared to $11,825.00 for the month of AUl!:ust, 2006. Account No. 5402 Account No. 5401 Account No. 999-5402 $ 21,115.00 $ 13,255.00 $ - 0- cc: Ron Parks, Deputy Director of Public Works Ali Moghadam, Senior Engineer (Traffic) Greg Butler, Senior Engineer (Capital Improvements) Amer Attar, Senior Engineer (Capital Improvements) Jerry Alegria, Senior Engineer (Land Development) R:\MAINTAIN\MOACTRPTI05.06\ OOC\lO 0 00 '" "'0 00 OOCOC\lCOOC\l '" '"' '" '" MMCOOOO :::; '" '" m 0 0 0 0 N CO C\l CO....... ~ '"' ui 0 N 0 ...;....: as 0 ~ '" Ef> '" Ef> ~ a; W N '" m "'z ri ;% 0; ::; w Wo ;;; 0 " r~ "' to=> ;;; w t =>m " r" => " ~~ ~ ~ F Q mm " OOC\lo 0 00 '" "'0 00 OOCOC\lCDOC\l '" '" '" ~ '" MMCOOOO :::; '" '" m ~ 0 0 0 0 N CO C\l CO....... ~ '"' ui 0 N 0 ...;....: as 0 ~ -c u~ '" Ef> '" Ef> a; w N '" ~ " ~u ri 0; " 'E <D~ ... i'i ~m ;;; Ef> 0 ~ W~ ;;; ;; 0 "'~ <n z E. ~ .. ~ Q . o ~ Z 0 <n<L " ;; 0: c '" W OOC\lo 000 000 00 COC\lOl.{)OV N N '" I- vC\lLOC\l 0 '" CO ... "' l<: w 0:: 0 0 0 0 ~ '" ~ ... 0:: ..J.... 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'" '" - ~ ,.: c Gi en G.i Ui ;; " ;; " Gi OJ OJ Cl" I>: Cl" .~ 0 .~ 0 Cl " ;; .. 0 .c .c .. ';; '01- ;;:510 $ .. " .. '0 " ..I 1ii ..I .. " 0 c..g> .. 0 Clll .. ... W...U :;; :;; ... W .l: ~ o::"U cij ~ ~ U ~ o::~c.. c ~ .. Z .. C cij I>: " W::l " W .:; 0 "" 1-"" W "" ..I W '" I- Z s: '" 1-'" .:; (l) '" U :;; W ::l W ::l W '" :;; ::l 0 :;; (l) W ..I 0 ... W ..I ii2 W ..I W 0 <><l ... (l) W l- I>: ~ !;;: W ~ Z C C Z '" 0.. III >= W W ~ I>: ~ 0 I>: Z ~ ..I W W W W '" U ::l ;;: ~ I C ~ U Z U I>: I>: I>: C '" ::; 0.. ..I I- ::l W ~ 0.. W 0 0 W I- ~ (l) W W >= ~ W s: : 2!:: '" W I '" ::l ii: ::l U a:: '" '" Z ~ I>: ~ g I W ii2 0 z z ~ ;;: 0 W 0.. C I (l) (l) I l- e ~ ~ ;1; I>: I>: ;1; W ~ ii.i ii.i ii.i (l) c '" <Ii I- STREET MAINTENANCE CONTRACTORS The following contractors have performed the following projects for the month of September, 2006 DATE DESCRIPTION TOTAL COST ACCOUNT STREET/CHANNEL/BRIDGE OF WORK SIZE . CONTRACTOR: BECKER ENGINEERING Date: 09/06 CITYWIDE ASPHALT SAW CUTTING CITYWIDE FOR PUBLIC WORKS CREWS # 5402 TOTAL COST $ 6,825.00 Date: 09/15106 MARGARITA ROAD NIO REMOVE & REPLACE PEDESTRIAN BARRICADES WINCHESTER # 5402 RANCHO CALIFORNIA ROAD AT TOTAL COST $ 3,865.00 DENNY'S Date: 09/27/06 GRADE & COMPACT DIRT SHOULDER DIAZ ROAD # 5402 TOTAL COST $ 5,425.00 Date: 09/19/06 SANTIAGO AT YNEZ CONSTRUCT RETENTION POND # 5401 TOTAL COST $ 5,645.00 Date: 09/20106 VALLEJO CHANNEL REPAIR & FILL VOIDS DUE TO EROSION # 5401 TOTAL COST $ 7,610.00 CONTRACTOR: RENE'S COMMERCIAL MANAGEMENT . . Date: 09/06 CITYWIDE WEED ABATEMENT, TRASH, DEBRIS CLEAN-UP ALONG RIGHTS OF WAY # 5402 TOTAL COST $ 5,000.00 Date: # TOTAL COST TOTAL COST ACCOUNT #5401 $ 13,255.00 TOTAL COST ACCOUNT #5402 $ 21,115.00 TOTAL COST ACCOUNT #99.5402 .0 - R:\MAINTA1N\MOACTRPT\05,O('\ CITY OF TEMECULA DEPARTMENT OF PUBLIC WORKS ROADS DIVISION ASPHALT (pOTHOLES) REPAIRS MONTH OF SEPTEMBER, 2006 09/05106 MARGARITA AT STONEWOOD R&R A.C. 144 8 09/06/06 MARGARITA AT PIO PICO R&R A.C. 120 7 09/12/06 WINCHESTER AT MARGARITA MEADOWS A.C. OVERLAY 852 6.5 09/18/06 MEADOWVIEW AREA A.C. OVERLAY 794 4.5 09/20106 PAUBA EAST OF MARGARITA R&R A.C. 241 6 09/21/06 SAN FERMIN AT MARGARITA R&R A.C. 119 4.5 09/26/06 PECHANGAPARKWAY A.C. OVERLAY 821 4 09/27/06 JEDEDIAH SMITH NORTH OF HWY 79 SOUTH A.C. OVERLAY 733 3.5 09/28/06 WINCHESTER AT ENTERPRISE CIRCLE SOUTH R&R A.C. 394 9 TOTAL S.F. OF REPAIRS 4.218 TOTAL TONS 53 R:\MAINTAfNIWKCMPLTD\ASPHALT.RPRIO.07\SEPTEMBER CITY OF TEMECULA DEPARTMENT OF PUBLIC WORKS ROADS DIVISION CATCH BASIN MAINTENANCE MONTH OF SEPTEMBER, 2006 09/05/06 CITYWIDE CLEANED & CHECKED 32 CATCH BASINS 09/06/06 AREAS #2 & #3 CLEANED & CHECKED 47 CATCH BASINS 09/08/06 AREA #4 CLEANED & CHECKED 5 CATCH BASINS 09/11/06 CITYWIDE CLEANED & CHECKED 17 CATCH BASINS 09/12/06 RORIP AUGH - STONEWOOD AREA CLEANED & CHECKED 18 CATCH BASINS 09/13/06 AREAS #2 & #3 CLEANED & CHECKED 16 CATCH BASINS 09/25106 CITYWIDE CLEANED & CHECKED 15 CATCH BASINS TOTAL CATCH BASINS CLEANED & CHECKED ~ R:\MAINT AIN\WKCMPLETD\CA TCHBAS\06.07\SEPTEMBER CITY OF TEMECULA DEPARTMENT OF PUBLIC WORKS ROADS DIVISION . GRAFFITI REMOVAL MONTH OF SEPTEMBER, 2006 iri";iri~ i"'i)::'); ij c c'c", 55',2i> , , ",' ,,<,A: :/< " WORK COMPLETED 09/01/06 BOYS AND GIRLS CLUB PUJOL REMOVED 65 S.F. OF GRAFFITI 09/05106 MARGARITA AT SOLANA REMOVED 55 S.F. OF GRAFFITI 09/05106 MARGARITA AT OVERLAND REMOVED 40 S.F. OF GRAFFITI 09/05106 1-15 ATHWY79 SO. (FREEWAY) REMOVED 75 S.F. OF GRAFFITI 09/05106 BEHIND K MART REMOVED 12 S.F. OF GRAFFITI 09/05106 SIB 1-15 AT WINCHESTER (FREEWAY) REMOVED 35 S.F. OF GRAFFITI . 09/05106 MIRA LOMA AT RANCHO VISTA REMOVED 15 S.F. OF GRAFFITI 09/06/06 27409 STANFORD DRIVE REMOVED 15 S.F. OF GRAFFITI 09/06/06 SIB.I-I5 (aJ WINCHESTER BRIDGE REMOVED 55 S.F. OF GRAFFITI 09/06/06 RANCHO VISTA AT MIRA LOMA REMOVED 30 S.F. OF GRAFFITI 09/07/06 PENFOLDS RESTAURANT REMOVED 75 S.F. OF GRAFFITI 09/11/06 MIRA LOMA AT EDISON PLANT REMOVED 298 S.F. OF GRAFFITI 09/11/06 RANCHO VISTA AT MIRA LOMA REMOVED 15 S.F. OF GRAFFITI 09/11/06 NORTH GENERAL KEARNY BRIDGE REMOVED 200 S.F. OF GRAFFITI 09/11/06 RISTIC GLEN AT RAINBOW CREEK. REMOVED 15 S.F. OF GRAFFITI 09/12/06 29746 RANCHO CALIFORNIA ROAD REMOVED 32 S.F, OF GRAFFITI 09/12/06 RANCHO CALIFORNIA ROAD AT LAS COLINAS REMOVED 55 S.F.OF GRAFFITI 09/13/06 RANCHO CALIFORNIA ROAD AT MORAGA REMOVED 230 S.F. OF GRAFFITI 09/13106 RORIPAUGH AT WINCHESTER REMOVED 25 S.F. OF GRAFFITI 09/13/06 RUSTIC GLEN AT KNOLL RIDGE REMOVED 15 S.F. OF GRAFFITI 09/13106 RUSTIC GLEN AT RAINBOW CREEK REMOVED 25 S.F. OF GRAFFITI 09/14/06 PAUBAROAD REMOVED 90 S.F. OF GRAFFITI 09/14/06 JEFFERSON AT VIA MONTEZUMA REMOVED 125 S.F. OF GRAFFITI R:\MAINTAIN\WKCMPLTDlGRAFFITII06.07\SEPTEMBER I' ,;..';:.:.)>'!"':.2o " ',,' ,,'!,.'.. ' ,{ ". ", .,.;:. . ';.;"~'" hi! !..,', .,:..<.;i",.,." '," ,...,.!!....,<:<;;i...,...,< ,!..,:", ...,< ,~~. ' . 09/14/06 31360MlRALOMA REMOVED 50 S.F. OF GRAFFITI 09/14/06 MIRA LOMA AT EDISON PLANT REMOVED 10 S.F. OF GRAFFITI 09/15106 ALORA AT AMARITA REMOVED 19 S.F. OF GRAFFITI 09/15/06 MARGARITA AT SOLANA REMOVED 15 S.F. OF GRAFFITI 09/18/06 29911 MIRA LOMA REMOVED 70 S.F. OF GRAFFITI 09/18/06 RANCHO VISTA AT SOUTHERN CROSS REMOVED 25 S.F. OF GRAFFITI 09/20106 PUJOL AT MAIN REMOVED 65 S.F. OF GRAFFITI' 09/22/06 MARGARITA ROAD AT RANCHO VISTA REMOVED 129 S.F. OF GRAFFITI . 09/25106 6TH STREET AT FELIX VALDEZ REMOVED 40 S.F. OF GRAFFITI 09/25106 31273 HURON STREET REMOVED 5 S.F. OF GRAFFITI .09/25106 29590 MIRA LOMA REMOVED 32 S.F. OF GRAFFITI 09/26/06 MIRA LOMA AT EDISON REMOVED 217 S.F. OF GRAFFITI 09/27/06 25909 MIRA LOMA REMOVED 40 S.F. OF GRAFFITI 09/28/06 STATER BROS. AT HWY 79 SO. REMOVED 25 S.F. OF GRAFFITI 09/28106 COSMIC AT RANCHO CALIFORNIA ROAD REMOVED 21 S.F. OF GRAFFITI 09/29/06 CHANNEL BEHIND CHAPP AREL HIGH REMOVED 30 S.F. OF GRAFFITI 09/29/06 A VENIDA DE MISSIONES REMOVED 53 S.F. OF GRAFFITI TOTAL S.F. GRAFFITI REMOVED 2.443 TOTAL LOCATIONS 40 R:\MAINT AfNIWKCMPLTDlGRAFFITJI06.07\SEPTEMBER ~ <~ ~o ~~ U~ ~~ ~~ ~~ ~~ ~~ o~ ~~ ~C-' ~\C Uc C ~ I I I , III I I I I <> W c > 0 Z I- U 0 l- ll.. UJ VI Cl :::> <{ ~ I- ...J LL :::> 0 .., UJ CI) z + :::> .., ~ :;;: ...J ii: ll.. <{ !t: <{ :;;: D:l W u. Z <{ .., I II I I I 1_ I 111 00000000000000000000000000 00000000000000000000000000 00000000000000000000000000 ~~~~M~m~~M~~~~M~m~~M~m~~M~ ~~~~~~MMMMMNNNNN~~~~~ 00 ...:i ...:i OOM ....-It--b 00 M OO-NMM .o:::t.-r"l.-...q- .... ........ ;>-. IJ.) _ (]) Q.) ~1il", ~'S]'S'S ,,2 ~'a >''' >,61,2.8 ~ 1l g-E"" p.~ S'S" fro 0" ....,>;r.,""<""....,....,<ooOZCl 0, r- oc \0 '" ,.., .. .:; "'" .. 0 ., 0 r- >< N ., ..... -= .... ..... 0 .. 0 ~ ., '" q; b.Il ..... 10 .. .. ..... ..... Cl 0 0 0 Eo< 0 ... 2l E-< ci< ..... .. 00 U ~.~ pEo< 0'0 000 ... .- I.() 0 00 \0 o I.() '::t t""') o::t \0 0\ 0 0 o::t' \0" .;::f '<;:;j-" v)" r...: ~ ~ v 0 N ("f) \0 00 r--- M I.() M 0 o::t M"' r--" 0\" C'l" ... ... ... i " " " i 'S ... 'S 'S "" '@ " ~ 'a " .0 " ~ " - .8 :> " .0 " :>. 01) Po " ~ :E1 ~ " 0 " " :s :s ~ " 0 Z Cl "" >;r., 00 CITY OF TEMECULA DEPARTMENT OF PUBLIC WORKS ROADS DIVISION RIGHT-OF-WAY TREE TRIMMING MONTH OF SEPTEMBER, 2006 09/05106 CORTE SEDA TRIMMED 5 R.O.W. TREES 2 R.O.W. TREES 09/06/06 NICOLAS ROAD AT VILLA VALENCIA TRIMMED 09113106 PAUBAATYNEZ TRIMMED 15 R.O.W. TREES 09113106 MARGARITA ROAD AT DATE STREET TRIMMED 3 R.O.W. TREES TOTAL R.O.W. TREES TRIMMED ~ R:\MAINT AIN\WRKCOMPLTDITREES\06.07\$EPTEMBER.06 CITY OF TEMECULA DEPARTMENT OF PUBLIC WORKS ROADS DIVISION SERVICE ORDER REQUEST LOG MONTH OF SEPTEMBER, 2006 ll''''''' ,UUU;,'.,;>" _!;f'!!'i"!!ii'li"ii;j~ii;i!~n!!""""""""",;?~ ) .' Di'\,',l']j;'WORK i I; 'iU i'" ii(nUi!!!!:!!) . C '<. i!',",ii' ,;;. ,'i ",.'""i,).).",.....I'{!'i::,:;... ,1 COMPLETED 09/01/06 45680 CORTE LOBOS SLURRY QUESTION 09/0 1/06 09/01/06 WINCHESTER CREEK ROAD SIGN REPAIR 09/01/06 09/05106 31964 CORTE CYNTHIA DEAD TREE 09/05/06 09/05106 WOLF V ALLEY ROAD TREE REPLACEMENT 09/05106 09/06/06 44679 CORTE SANCHEZ TREE LIMBS DOWN 09/06/06 09/06/06 40473 CALLE FIESTA TREE DOWN 09/06/06 09/06/06 32250 PLACER BEL AIR TREE DOWN 09/06/06 09/06/06 29900 CORTE CANTERA TREE DOWN 09/06/06 09/06/06 40210 DONOMORE COURT SIGN DOWN 09/06/06 09/06/06 AMARIT A FADED SIGNS 09/06/06 09/06/06 CANDIDA AT MIRA LOMA DEBRIS REMOVAL 09/06/06 09/06/06 OVERLAND AT JEFFERSON DEBRIS REMOVAL 09/06/06 09/06/06 41552 BIG SAGE COURT DISEASED TREE 09/06/06 09/07/06 32159 CAMINO SENECO TREE DOWN 09/07/06 , 09/07/06 31278 AVENIDA DEL REPOSO TREE TRIMMING 09/20106 09/07/06 30932 OAK HILL DRIVE TREE DOWN 09/07/06 09/07/06 33299 CORTE YACA TREE DOWN 09/07/06 09/07/06 32298 CALLE RESACA TREE DOWN 09/07/06 09/07/06 45339 ZUMA DRIVE DEAD TREE 09/07/06 09/07/06 32159 CAMINO SENECO STUMP GRIND 09/07/06 09/07/06 VIA TAFALLA S.N.S. DOWN 09/07/06 09/08/06 40794 BACCARAT STORM DRAIN CLEAN 09/08/06 09/08/06 DEPORTOLA TREE DOWN 09/08/06 09/08/06 39471 JACARANDA COURT TREE DOWN 09/08/06 09/12106 30016 VILLA ALTURAS TREE REMOVAL 09/12/06 R:\MAINTArN\WRKCOMPLTD\SORSI06.07 ,. 2T ~ ~0 "'\ ......,....' \\i,""'" '".. (,. ,'",','. '.. " P.i\.l,1!;f ,.,'".' :~8Wi;.i ," < " DATE WORK I' " ~'-'v '<' COMPLETED 09/12/06 41147 VIA PUERTA TREE DOWN 09/12/06 09/12106 44710 LONGFELOW TREE DOWN 09/12/06 09/12/06 41147 VIA PUERTA TREE DOWN 09/12/06 09/13/06 41065 AVENIDA VERDE A.C. REPAIR 09/13/06 09/13/06 AMARITAROAD SIGN REPAIR 09113/06 09113/06 V AIL RANCH SIGNS MISSING 09/13/06 09/13106 RANCHO CALIFORNIA ROAD SIGNS MISSING 09/13/06 09/13/06 HURON SIGN REPAIR 09/13106 09/14106 40925 COUNTY CENTER TREE DOWN 09/14/06 09/15/06 MARGARITA AT PASEO BRILLANTE TREE DOWN 09/15106 09/15106 YNEZ SOUTH OF P AUBA LOOSE MANHOLE 09/15/06 09/15106 41112 VINTAGE CIRCLE TREE DOWN 09/15/06 09/18/06 42635 REMORA COURT TREE TRIMMING 09/18/06 09/18106 31118 CALLE ARAGON TREE REMOVAL 09/18/06 09/18/06 CORTE GUTIERREZ SNS MISSING 09/18/06 09/19/06 MONTE COURT OIL SPILL 09/19/06 09/20106 31577 CORTE PACHECO TREE DOWN 09/20106 09/20106 RANCHO CALIFORNIA ROAD AT RIDGE PARK DRIVE S.N.S. MISSING 09/20106 09/20106 39055 LIEFER ROAD DEBRIS PICK-UP 09/20/06 09/21/06 PAUBAROAD DEBRIS PICK-UP 09/21/06 09/21/06 A VENIDA BARCA SIGN DOWN 09/21/06 09/21/06 41507 EAGLE POINT TREE REMOVAL 09/21/06 09/22/06 30542 BAY HILL DRIVE TREE DOWN 09/22/06 09/22/06 SOLANA WAY TREE TRIMING 09/22106 09/22/06 RYCREST RAISED SIDEWALK 09122/06 09/25106 A VENIDA DE LA REINA SNS MISSING 09/25/06 09/25106 43551 SAN FERMIN DEBRIS PICK-UP 09/25106 09/25106 42285 COSMIC TREE REMOVAL 09/25106 09/25106 SOUTHBOUNDPAUBA LOOSE MANHOLE 09/25106 R:\MAlNTAIN\WRKCOMPLTD\SORS\06.07 , DATE .......,......."........,:.....iit I./i,..".... Sr.',,'.' DATE WORK REC'D , "'..i,... ..X>.......:., ,~,.. COMPLETED n> "'..' 09/25/06 WOLF STORE ROAD PAINT MEDIANS 09/25/06 09/26/06 JEDEDIAH SMITH POTHOLES 09/26/06 09/28106 RORIPAUGHROAD REPAINT LEGENDS 09/28/06 09/28106 BUTTERFIELD STAGE ROAD SIGN PICK-UP 09/28/06 09/27/06 PECHANGA RESERVATION SIGN PICK-UP 09/27/06 09/28106 32704 HISLOP ROOT PRUNING 09/28/06 09/28/06 41507 EAGLE POINT TREE REMOVAL 09/28/06 09/29/06 CORTE ALHAMI3RA SNS MISSING 09/29/06 , TOTAL SERVICE ORDER REQUESTS ~ R:\MAINTAJN\WRKCOMPLTDlSORS\06.07 CITY OF TEMECULA DEPARTMENT OF PUBLIC WORKS ROADS DIVISION SIGNS MONTH OF SEPTEMBER, 2006 09/01/06 MAIN STREET BRIDGE REPLACED N-2CA 09/05106 MARGARITA AT HARVESTON WAY REPLACED R4-7, TYPEK 09/05106 27941 DIAZ REPLACED 2 "L" MARKERS 09/06/06 CAMPOS VERDES AT MANCERA REPLACED R-l 09/06/06 LAHONTAN STREET INSTALLED 3N.H.W. 09/06/06 MARGARITA AT RANCHO CALIFORNIA ROAD REPLACED R4-7, TYPEK 09/06/06 SHARON ATDRYMAN INSTALLED 3 R-l, 3 RI-4 09/06/06 CITYWIDE REPAIRED 9 SIGNS 09/07/06 WINCHESTER AT YNEZ REPLACED R-7 09/08/06 RANCHO CALIFORNIA ROAD AT OLD TOWN FRONT REPLACED RJ-7 09/11/06 CROWNE HILL AT P AUBA REPLACED W3-I,R-1 09/11/06 SOUTHBOUND CROWNE HILL REPLACED W3-1 09/Il/06 NICOLAS AT CALLE GIRASOL REPLACED Rl,SNS 09/Il/06 JEFFERSON AT SANBORN REPLACED 2 R4-7, 2 TYPE "K" 09/13/06 MARGARITA AT WINCHESTER REPLACED 4 DELINEATORS 09/13/06 45711 PIUTE STREET REPLACED R-l 09/13/06 PAUBA EAST OF MEADOWS PARKWAY REPLACED R2-50 09/14/06 TEHACHAPI PASS REPLACED 2R-1 0915106 SANTA CECELIA AT COSMIC REPLACED RI-4 09/15106 42230 COSMIC REPLACED R2-25 09/19/06 RANCHO CALIFORNIA ROAD EASTBOUND MARGARITA REPLACED R2-50, R-26 09/19/06 RANCHO CALIFORNIA ROAD AT TEE DRIVE REPLACED R4-7,KMARKER 09/19/06 CITYWIDE REPAIRED 18 SIGNS R:\MA1NTAIN\WKCMPLTD\SIGNS\.06,07\SEPTEMBERT ",.;...L:,(lt:(((~.. ,.." ,'," ".. ,/( 09/25106 SOLANA AT MARGARITA REPLACED R4-7, TYPE "K", R-26 09/25106 CALLE VlAMIANZO AT VIA T AF ALLA REPLACED R-l 09/26/06 YUKON INSTALLED 2 R2-35 09/26106 DEPORTOLA INSTALLED 4 R2-45 09/26/06 REDHAWKPARKWAY INSTALLED R2-45 09/26/06 32105 DE PORTOLA REPLACED R4-7, TYPE "K" 09/28/06 REDHAWKPARKWAY REPLACED R4-7 09/28/06 DE PORTOLA ROAD ' REPLACED 3 R4-7, 3 TYPE "K" 09/29/06 CROWNE HILL AT PAUBA INSTALLED 6 R2-35 09/29106 RANCHO CALIFORNIA ROAD AT RIDGE PARK DRIVE REPLACED SNS TOTAL SIGNS REPLACED ~ TOTAL SIGNS INSTALLED -.ll TOTAL SIGNS REPAIRED 27 R:\MArNT AfN\WKCMPLTDlSIGNSI.06.07\SEPTEMBERT CITY OFTEMECULA DEPARTMENT OF PUBLIC WORKS ROADS DIVISION STENCILS I STRIPING MONTH OF SEPTEMBER, 2006 '.' ',. ' CJ,; ',".)}'" .,.,.. "'fri.;.,)i2 ,,-, ',..'.' < , '.. DATE .," .." , WORK COMPLETED 09/05106 PALOMA DEL SOL REPAINTED 26 LEGENDS 09/06/06 PALOMA DEL SOL REPAINTED 55 LEGENDS 09/07/06 AREA #2 REPAINTED 59 LEGENDS 09/11/06 LEENA WAY AT MEADOWS PARKWAY REPAINTED 39 LEGENDS , 09/13/06 MARGARITA MEADOWS AT WINCHESTER REPAINTED 16 LEGENDS 09/18/06 MEADOWS PARKWAY AT DE PORTOLA REPAINTED 35 LEGENDS 09/19/06 MEADOWS PARKWAY ATCAMPANULA REPAINTED 22 LEGENDS 09/20106 MEADOWS PARKWAY ATCAMPANULA REPAINTED 12 LEGENDS 09/25106 MEADOWS PARKWAY AT LA SERENA REPAINTED 18 LEGENDS 09/27/06 BUTTERFIELD STAGE ROAD REPAINTED 11 LEGENDS 09/28/06 BUTTERFIELD STAGE ROAD REPAINTED 11 LEGENDS TOTAL NEW & REPAINTED LEGENDS 304 NEW & REPAINTED RED CURB & STRIPING L.F. 0 R:\MAINTAIN\WRKCOMPLTD\STRIPING\06.07\ ITEM NO. 51 Approvals City Attorney Director of Finance City Manager 1#-r- I/Il. * CITY OF TEMECULA AGENDA REPORT TO: City ManagerlCity Council FROM: Mitch Aim, Chief of Police DATE: November 14, 2006 SUBJECT: Police Department Monthly Report The following report reflects the activity of the Temecula Police Department for the month of September 2006. PATROL SERVICES Overall calls for police service ................................................................................................. 3,155 "Priority One" calls for service ....................................................................................................... 52 Average response time for "Priority One" calls.............................................................5.28 Minutes VOLUNTEERS Volunteer administration hours ................................................................................................... 419 Community Action Patrol (CAP) hours .......................................................................................342 Reserve officer hours (patrol) .........................................................................................................3 Total Volunteer hours...............................................................................................................1,050 CRIME PREVENTION/GRAFFITI Crime prevention workshops conducted ........................................................................................ 1 Residentiallbusiness security surveys conducted ....................................................................... 2/0 Businesses visited........................................................................................................................ 11 Businesses visited for past crime follow-up.................................................................................. 14 Crime prevention articles ................................................................................................................1 Total square footage of graffiti removed.................................................................................. 2,433 OLD TOWN STOREFRONT Total customers served............................................................................................................... 237 Sets of fingerprints taken .............................................................................................................. 13 Police reports filed........................................................................................................................ 16 Citations signed off ......................................................................................................................... 7 Total receipts. ... ... ... ... ... ..... ... ... ... .... ... ... ... ... ... ..... ... ... ... .... ... ... ... ... ... ..... ... ... .... ... ... ... ... ... ..... ..... $5,725 POP TEAM On sight felony arrests ....................................................................................................................8 On sight misdemeanor arrests...................................................................................................... 12 Felony arrest warrants served ........................................................................................................6 Follow-up investigations................................................................................................................ 10 Drugs Seized 23.4 grams Marijuana 82.8 grams Methamphetamine 4.5 grams Cocaine SPECIAL ENFORCEMENT TEAM (SET TEAM) On sight felony arrests ....................................................................................................................2 On sight misdemeanor arrests........................................................................................................8 Felony arrest warrants served ........................................................................................................2 Misdemeanor arrest warrants served ........................................................................................... 10 Follow-up investigations................................................................................................................ 10 Drugs Seized 2.0 grams methamphetamine 10.0 grams Marijuana TRAFFIC Citations issued for hazardous violations ................................................................................ 1,376 Non-hazardous citations............................................................................................................. 293 Stop Light Abuse Program (SLAP.) citations........................................................................... 364 Neighborhood Enforcement Team (N.E.T.) citations .................................................................108 Parking citations.. ... ... ... ... ... ..... ... ... ... .... ... ... ... ... ... ..... ... ... .... ... ... ... ... ... ..... ... ... ... .... ... ... ... ... ... ..... .... 356 Injury collisions.............................................................................................................................. 25 INVESTIGATIONS Total cases assigned .................................................................................................................... 67 Total case closure rate.................................................................................................................. 54 Current total of all open cases (as of end of month) .................................................................. 201 Presentations (Investigator Brown - A.G. Edwards) ...................................................................... 1 PROMENADE MALL TEAM Calls for service........................................................................................................................... 519 Felony arrest/filings......................................................................................................................... 5 Misdemeanor arrest/filings............................................................................................................ 22 Vehicle burglaries........................................................................................................................... 1 Vehicle thefts. ... ... ... ... ... ..... ... ... ... .... ... ... ... ... ... ..... ... ... ... .... ... ... ... ... ... ..... ... ... .... ... ... ... ... ... ..... ... ... ... ..... 1 PreventionlSuppression Programs ................................... Promenade Mall High Visibility Program PROMENADE MALL STOREFRONT Total customers served............................................................................................................... 273 Sets of fingerprints taken ............................................................................................................ 150 Police reports filed........................................................................................................................ 37 Citations signed off ....................................................................................................................... 10 Traffic Citations ........................................................................................................................... 184 Total Receipts........................................................................................................................ $7,195 SCHOOL RESOURCE OFFICERS Felony arrests................................................................................................................................. 6 Misdemeanor arrests .................................................................................................................... 16 Citations..................................................................................................................... ................... 97 Youth counseled......................................................................................................................... 489 Presentations Bullying/Gangs (6'h grade) ......................................................................... Margarita Middle School Bullying/Gangs (Bilingual- 6'h grade) ....................................................... Margarita Middle School Bullying/Gangs (6'h grade) .................................................................. James L. Day Middle School Barriers to Success - Drugs & Gangs (Freshman Parents) ........................Chaparral High School Obeying Rules in School (Kindergarten, 1" Grade) ........................Tony Tobin Elementary School Bicycle Safety (6'h grade) ............................................................................. Gardner Middle School Weapons on Campus (9'h _12'h grades)..................................................... Great Oak High School Bullying/Gangs (Spanish Speaking Parents)..................................... Temecula Elementary School YOUTH ACCOUNTABILITY TEAM Orientations delivered to new program members .......................................................................... 5 School visits.................................................................................................................................. 58 Home visits........................................................................................................................ .............. 6 Presentations Bullying/Gangs (6'h grade) ......................................................................... Margarita Middle School Bullying/Gangs (6'h grade) .................................................................. James L. Day Middle School Bullying/Gangs (6'h grade) ............................................................51. Jeanne de Lestonnac School Parent Project Jail Tour (8 participants)