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HomeMy WebLinkAbout092507 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 SEPTEMBER 25, 2007 - 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. 6:15 P.M. - Closed Session of the City Council pursuant to Government Code Section: 1. Conference with real property negotiator pursuant to Government Code Section 54956.8 regarding the following real property: (a) Real property owned by Aquiport Amsdell, which is commonly known as 44618 Pechanga Parkway, Temecula, and identified as Riverside County Assessor's Parcel Number 961-010-009. City of Temecula negotiators are Paula Baeza of the City Attorney's Office; Amer Attar, Principal Engineer; and Carol Chiodo, Property Agent, regarding instructions to negotiators concerning price and terms. The City negotiator may negotiate with the property owner Aquiport Amsdell. (b) Real property owned by Arthur and Julia Gaitan, which is unimproved land located on Pechanga Parkway, Temecula, and identified as Riverside County Assessor's Parcel Number 961-010-022. City of Temecula negotiators are Paula Baeza of the City Attorney's Office; Amer Attar, Principal Engineer; and Carol Chiodo, Property Agent, regarding instructions to negotiators concerning price and terms. City negotiator may negotiate with the property owners Arthur and Julia Gaitan. (c) Real property owned by Temecula Creek RV Storage, which is commonly known as 44526 Pechanga Parkway, Temecula, and identified as Riverside County Assessor's Parcel Number 961-010-024. City of Temecula negotiators are Paula Baeza of the City Attorney's Office; Amer Attar, Principal Engineer; and Carol Chiodo, Property Agent, regarding instructions to negotiators concerning price and terms. City negotiator may negotiate with the property owner Temecula Creek RV Storage. (d) Real property owned by Stephen Sweatt and Andrea Lovvorn, which is commonly known as 45009 Muirfield, Temecula, and identified as Riverside County Assessor's Parcel Number 961-042-001. City of Temecula negotiators are Paula Baeza of the City Attorney's Office; Amer Attar, Principal Engineer; and Carol Chiodo, Property Agent, regarding instructions to negotiators concerning price and terms. City negotiator may negotiate with the property owners Stephen Sweatt and Andrea Lovvorn. (e) Real property owned by Mike and Beverly Siow, which is commonly known as 44975 Trotsdale Drive, Temecula, and identified as Riverside County Assessor's Parcel Number 961-042-004. City of Temecula negotiators are Paula Baeza of the City Attorney's Office; Amer Attar, Principal Engineer; and Carol Chiodo, Property Agent, regarding instructions to negotiators concerning price and terms. City negotiator may negotiate with the property owners Mike and Beverly Siow. 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: 07-12 Resolution: 07-73 CALL TO ORDER: Mayor Chuck Washington Prelude Music: Shanti Ryle Invocation: Pastor John Ruhlman of Life Church Flag Salute: Council Member Comerchero ROLL CALL: Comerchero, Edwards, Naggar, Roberts, Washington PRESENTA TIONS/PROCLAMA TIONS Chaparral Hiqh School - Celebratinq a Decade of Excellence 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. 2 For all Public Hearing or Council Business matters on the agenda, a "Request to Speak" form must be filed with the City Clerk prior to the Council addressing that item. There is a five minute (5) time limit for individual speakers. CITY COUNCIL REPORTS Reports by the members of the City Council on matters not on the agenda will be made at this time. A total, not to exceed, ten (10) minutes will be devoted to these reports. CONSENT CALENDAR NOTICE TO THE PUBLIC All matters listed under Consent Calendar are considered to be routine and all will be enacted by one roll call vote. There will be no discussion of these items unless Members of the City Council request specific items be removed from the Consent Calendar for separate action. 1 Standard Ordinance and Resolution Adootion Procedure RECOMMENDATION: 1 .1 Motion to waive the reading of the text of all ordinances and resolutions infcluded in the agenda. 2 Minutes RECOMMENDATION: 2.1 Approve the minutes of September 11, 2007. 3 List of Demands RECOMMENDATION: 3.1 Adopt a resolution entitled: RESOLUTION NO. 07- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA ALLOWING CERTAIN CLAIMS AND DEMANDS AS SET FORTH IN EXHIBIT A 4 Purchase and Sale Ameement for Certain Prooertv Riqhts on Prooertv Located at 45024 Muirfield Drive RECOMMENDATION: 3 4.1 Approve substantially in the form attached hereto the Purchase and Sale Agreement between the City of Temecula and Christopher and Tammy Mitchell, for the purchase of an approximate 5,280 square foot permanent easement and an approximate 80 square foot area in fee for the widening of Pechanga Parkway at a purchase price of $6,500.00 plus escrow fees; 4.2 Authorize the Finance Department to disburse the amount of $6,500 to cover the cost of the easements plus the associated escrow fees not to exceed $1,000.00; 4.3 Authorize the Mayor to execute the Purchase and Sale Agreement, approve and execute any necessary documents, and to take all necessary actions to complete this acquisition, including without limitation, all escrow instructions. 5 French Vallev Interchanqe Proiect - Joint Resolution with the Citv of Murrieta RECOMMENDATION: 5.1 Adopt a resolution entitled: RESOLUTION NO. 07- A JOINT RESOLUTION OF THE CITY COUNCILS OF THE CITIES OF TEMECULA AND MURRIETA RECOGNIZING THE REGIONAL SIGNIFICANCE OF THE PLANNED FRENCH VALLEY PARKWAY IINTERSTATE-15 OVER- CROSSING AND INTERCHANGE IMPROVEMENTS PROJECT AND COMMITTING TO WORK TOGETHER TO EXPEDITIOUSLY DELIVER THE PROJECT 6 License Ameement for the TEAM Communitv Pantrv RECOMMENDATION: 6.1 Approve a First Amendment to the License Agreement between the City of Temecula and the Global Community Foundation to terminate the Agreement; 6.2 Approve the License Agreement between the City of Temecula and the TEAM Community Pantry to maintain a modular office building and storage containers at the Temecula Community Center in a monthly amount of $1,100 ($13,200) annually) . 7 First Amendment to the Non-Exclusive Purchase Ameement for the Traffic Siqnallnstallation at Rancho California Road and Business Park Drive. West - Proiect No. PW07-02 RECOMMENDATION: 7.1 Approve the First Amendment with McCain Traffic Supply, Inc. to provide a Traffic Signal Controller, Cabinet and Battery Back-Up System for the Traffic Signal Installation at Rancho California Road and Business Park Drive West - Project No. PW07-02 - for an amount not to exceed $12,053.99 and authorize the Mayor to execute the amendment. 4 8 Amendment NO.1 to Verizon Cable Franchise RECOMMENDATION: 8.1 Adopt a resolution entitled: RESOLUTION NO. 07- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA APPROVING AND AUTHORIZING THE EXECUTION OF AMENDMENT NO.1 TO THE NONEXCLUSIVE CABLE FRANCHISE AGREEMENT BETWEEN THE CITY AND VERIZON CALIFORNIA, INC. 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. CSD CONSENT CALENDAR 9 Minutes RECOMMENDATION: 9.1 Approve the minutes of September 11, 2007. 10 Acceptance of Landscape Bonds and Aqreement for Parcel Map No. 23496 - Auto Mall Landscaoed Medians RECOMMENDATION: 5 10.1 Accept the surety bonds and agreement from Indemnity Company of California to construct landscaped medians along Ynez Road between Rancho California and Solana Roads. 11 Ameement Between the Citv of Temecula and MuniFinancial for Service Level C Election Services RECOMMENDATION: 11.1 Approve the Agreement between the Temecula Community Service District and MuniFinancial for Service Level C Election Services in the amount of $35,510.00. CSD DIRECTOR OF COMMUNITY SERVICES REPORT CSD GENERAL MANAGERS REPORT CSD BOARD OF DIRECTORS REPORTS CSD ADJOURNMENT TEMECULA REDEVELOPMENT AGENCY MEETING RDA PUBLIC COMMENTS A total of 15 minutes is provided so members of the public may address the Redevelopment Agency on items that are not listed on the agenda or on the Consent Calendar. Speakers are limited to two (2) minutes each. If you decide to speak to the Board of Directors on an item not on the agenda or on the Consent Calendar, a pink "Request to Speak" form should be filled out and filed with the City Clerk. When you are called to speak, please come forward and state your name for the record. For all other agenda items, a "Request to Speak" form must be filed with the City Clerk Prior to the Board of Directors addressing that item. There is a five (5) minute time limit for individual speakers. Anyone wishing to address the Board of Directors should present a completed pink "Request to Speak" form to the City Clerk. When you are called to speak, please come forward and state your name and address for the record. RDA CONSENT CALENDAR 12 Minutes RECOMMENDATION: 12.1 Approve the minutes of September 11, 2007. RDA DEPARTMENTAL REPORT 6 13 Redevelooment Deoartmental Monthlv Reoort RDA EXECUTIVE DIRECTORS REPORT RDA AGENCY MEMBERS REPORTS RDA ADJOURNMENT 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. 14 Prooosed Noise Ordinance addinq Chaoter 9.2 to Title 17 of the Temecula Municioal Code_ RECOMMENDATION: 14.1 Introduce and read by title only an ordinance entitled: ORDINANCE NO. 07- AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TEMECULA ADDING CHAPTER 9.20 TO THE TEMECULA MUNICIPAL CODE ESTABLISHING CITYWIDE STANDARDS FOR REGULATING NOISE 15 Develooment Ameement. General Plan Amendment. Tentative Tract Mao. and Develooment Plan with a Minor Exceotion for a 608.934 square foot industrial buildinq on 32 acres. and for the future develooment of the remaininp 52 acres to include industrial. commercial. retail. hiqh-densitv residential. and/or public institutional facilitv land uses. In addition. the oroiect includes an Ooeratinq Covenant Ameement that outlines incentives relatinq to this exoansion. RECOMMENDATION: 15.1 Adopt a resolution entitled: RESOLUTION NO. 07- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA APPROVING A MITIGATED NEGATIVE DECLARATION FOR THE TEMECULA PROPERTIES LLC/PROFESSIONAL HOSPITAL SUPPLY PROJECT ON AN 84- ACRE SITE LOCATED AT THE NORTHWEST CORNER OF DENDY PARKWAY AND WINCHESTER ROAD AS A FUTURE SPECIFIC PLAN AREA (APN 909- 370-018 AND 909-370-032) WHICH CONSISTS OF PLANNING APPLICATIONS NO. PA07-0048, A GENERAL PLAN AMENDMENT; PA07-0220, A 7 DEVELOPMENT AGREEMENT; PA06-0370, A TENTATIVE MAP; AND PA06- 0369, PA07-0090, A DEVELOPMENT PLAN WITH A MINOR EXCEPTION 15.2 Adopt a resolution entitled: RESOLUTION NO. 07- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA APPROVING A GENERAL PLAN AMENDMENT TO TABLE LU-5 OF LAND USE ELEMENT TO DESIGNATE AN 84-ACRE SITE LOCATED AT THE NORTHWEST CORNER OF DENDY PARKWAY AND WINCHESTER ROAD AS A FUTURE SPECIFIC PLAN AREA (APN 909-370-018 AND 909-370-032) PLANNING APPLICATION NO. PA07-0048 15.3 Adopt a resolution entitled: RESOLUTION NO. 07- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA APPROVING A TENTATIVE TRACT MAP (TTM 35181) TO SUBDIVIDE AN APPROXIMATE 84-ACRE SITE INTO FIVE PARCELS, FOUR DEVELOPABLE LOTS AND ONE SLOPE AND EASEMENT PARCEL, LOCATED AT THE NORTHWEST CORNER OF DENDY PARKWAY AND WINCHESTER ROAD (APN 909-370-018 AND 909-370-032) PLANNING APPLICATION NO. PA06-0370 15.4 Adopt a resolution entitled: RESOLUTION NO. 07- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA APPROVING A DEVELOPMENT PLAN TO CONSTRUCT A THREE-STORY, 608,934 SQUARE FOOT INDUSTRIAL DISTRIBUTION BUILDING ON AN APPROXIMATE 32-ACRE SITE GENERALLY LOCATED AT THE NORTHWEST CORNER OF DENDY PARKWAY AND WINCHESTER ROAD, AND A MINOR EXCEPTION TO ALLOW FOR A ONE PERCENT BUILDING HEIGHT INCREASE FROM 50' TO 50'8" (APN 909-370-018 AND 909-370-032) PLANNING APPLICATIONS NO. PA06-0369 AND PA07-0090 15.5 Introduce and read by title only an ordinance entitled: ORDINANCE NO. 07- AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TEMECULA APPROVING A DEVELOPMENT AGREEMENT BETWEEN TEMECULA PROPERTIES, LLC, PROFESSIONAL HOSPITAL SUPPLY, INC., AND THE CITY OF TEMECULA FOR AN APPROXIMATE 84-ACRE SITE GENERALLY LOCATED AT THE NORTHWEST CORNER OF DENDY PARKWAY AND 8 WINCHESTER ROAD IN THE CITY OF TEMECULA (APN 909-370-018 AND 909- 370-032) PLANNING APPLICATION NO. PA07-0220 15.6 Adopt a resolution entitled: RESOLUTION NO. 07- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA APPROVING THAT CERTAIN AGREEMENT ENTITLED OPERATING COVENANT AGREEMENT (PROFESSIONAL HOSPITAL SUPPLY) BY AND BETWEEN THE CITY OF TEMECULA AND PROFESSIONAL HOSPITAL SUPPLY, INC. JOINT CITY COUNCIL/REDEVELOPMENT AGENCY/TEMECULA PUBLIC FINANCING AUTHORITY BUSINESS 16 Issuance of Tax Allocation Bonds b\( the Redevelooment Aqencv of the Citv of Temecula for the Temecula Redevelooment Proiect NO.1 RECOMMENDATION: 16.1 That the City Council adopt a resolution entitled: RESOLUTION NO. 07- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA APPROVING THE ISSUANCE BY THE REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA OF TAX ALLOCATION BONDS 16.2 That the Temecula Redevelopment Agency adopt a resolution entitled: RESOLUTION NO. RDA 07- A RESOLUTION OF THE BOARD OF DIRECTORS OF THE TEMECULA REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA AUTHORIZING THE ISSUANCE AND SALE OF TAX ALLOCATION BONDS IN CONNECTION WITH TEMECULA REDEVELOPMENT PROJECT NO.1, AND APPROVING RELATED DOCUMENTS AND ACTIONS 16.3 That the Temecula Public Finance Authority adopt a resolution entitled: RESOLUTION NO. TPFA 07- A RESOLUTION OF THE BOARD OF DIRECTORS OF THE TEMECULA PUBLIC FINANCING AUTHORITY AUTHORIZING THE PURCHASE AND SALE OF TAX ALLOCATION BONDS OF THE REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA, AND APPROVING OTHER MATTERS RELATED THERETO DEPARTMENTAL REPORTS g 17 Economic Develooment Deoartment Monthlv Reoort 18 Citv Council Travel/Conference Reoort - Auqust 2007 19 Buildinq and Safetv Deoartment Monthlv Reoort 20 Planninq Deoartment Monthlv Reoort 21 Public Works Deoartment Monthlv Reoort 22 Police Deoartment Monthlv Reoort CITY MANAGER REPORT CITY ATTORNEY REPORT ADJOURNMENT Next regular meeting: City Council Regular, Tuesday, October 9, 2007, 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. 10 PROCLAMA TIONS AND PRESENTATIONS The City of Temecula PROCLAMATION WHEREAS, Chaparral High School is the Home of Scholars & Champions; and WHEREAS, we honor the occasion of Chaparral High School's 10th anniversary; and WHEREAS, Chaparral High School was charted by the Temecula Unified School District in August 1997; and WHEREAS, Chaparral High School strives to provide a safe, supportive environment; innovative, exceptional programs; and rigorous, relevant educational standards; and WHEREAS, Chaparral High School strives to provide literacy for all students; to offer competent and caring staff; and to instill effective communication, collaboration, and decision-making skills; and WHEREAS, Chaparral High School is committed to modeling and fostering socially responsible behavior and helping all students reach their potential; and WHEREAS, the mission of Chaparral High School is to empower students to become lifelong learners, who are literate, ethical, and responsible citizens, and who embrace challenges as opportunities in the 21 st Century. NOW, THEREFORE, I, Chuck Washington, on behalf of the City Council of the City of Temecula, hereby proclaim the first week of October, 2007, to be "Chaparral High School" "Celebrating a Decade of Excellence Week" IN WITNESS WHEREOF, I have hereunto set my hand and caused the Seal of the City of T emecula to be affixed this twenty-fifth day of September, 2007. Chuck Washington, Mayor Susan W. Jones, MMC, City Clerk CONSENT CALENDAR I~-- . , II ITEM NO.1 II , II - . . . I I II II __. . I I~-- . , II ITEM NO.2 II , II - . . . I I II II __. . I MINUTES OF A REGULAR MEETING OF THE TEMECULA CITY COUNCIL SEPTEMBER 11, 2007 The City Council at commenced at 7:00 p.m., on Tuesday, September 11, 2007, at the Temecula Duck Pond, 28250 Rancho California Road, Temecula, California. Present: Council Members: Comerchero, Edwards, Naggar, Roberts, and Mayor Washington Absent: Council Members: None. PRELUDE MUSIC The prelude music was provided by Great Oak High School Band. INVOCATION The invocation was provided by Rabbi Yitzchok Hurwitz of Chabad of Temecula Valley. PLEDGE OF ALLEGIANCE The pledge of allegiance was presented by Council Member Comerchero. PRESENTA TIONSIPROCLAMA TIONS Certificate of Achievement oresented to Garrick Alan Davies for attaininc the rank of Eacle Scout Congratulating Garrick Alan Davies for achieving the rank of Eagle Scout, Council Member Edwards presented him with an award and wished him success in his future accomplishments. Garrick Alan Davies thanked the City Council for its recognition. Master Chief Rich Strehl Da\l On behalf of the City Council, Mayor Washington presented Master Chief Strehl with a proclamation, proclaiming August 24, 2007, to be Master Chief Rich Strehl Day. Accepting the proclamation, Mr. Strehl thanked the City Council for its recognition. On behalf of the First Reconnaissance Battalion, Sergeant Daniel Bishop, Corporal Jordan Sayers, and Corporal Edward Wilson presented the City with a flag that was flown over Camp Fallugia, Iraq. Mayor Washington, on behalf of the Council, thanked the First Reconnaissance for the honor. PUBLIC COMMENT No comments. RIMinuteslOg1107 CITY COUNCIL REPORTS No reports at this time. CONSENT CALENDAR 1 Standard Ordinance and Resolution Adootion Procedure RECOMMENDATION: 1 .1 Motion to waive the reading of the text of all ordinances and resolutions included in the agenda. 2 Minutes RECOMMENDATION: 2.1 Approve the minutes of August 21, 2007; 2.2 Approve the minutes of August 28, 2007. 3 Resolution aoorovina List of Demands RECOMMENDATION: 3.1 Adopt a resolution entitled: RESOLUTION NO. 07-72 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 Reoort as of Julv 31. 2007 RECOMMENDATION: 4.1 Approve and file the City Treasurer's Report as of July 31, 2007. 5 Financial Statements for the Fiscal Year Ended June 30. 2007 RECOMMENDATION: 5.1 Receive and file the Financial Statements for the Fiscal Year Ended June 30, 2007; 5.2 Decrease Transfers Out in the Development Impact Fund and Transfers in the Capital Improvement Fund in the amount of $509,976. RIMinuteslOg1107 2 6 Third Amendment to a Professional Services Allreement for the Main Street Bridae Over Murrieta Creek (Reolacement) Proiect No. PW03-05 RECOMMENDATION: 6.1 Approve the Third Amendment to the agreement with Simon Wong Engineering in an amount not to exceed $322,305.00 for additional services necessary to complete the Plans, Specifications and Estimate (PS&E) and the Environmental Document for the Main Street Bridge Over Murrieta Creek (Replacement) - Project No. PW03-05; and authorize the Mayor to execute the amendment; 6.2 Authorized the City Manager to approve Extra Work Authorizations not to exceed the contingency amount of 10% of the amendment ($32,230.50). 7 Amendment NO.1 to Aareement for Consultant Services Aareement between the Citv of Temecula and David Turch & Associates for Federal Lobbvist Service RECOMMENDATION: 7.1 Approve an amendment for Federal legislative services to be provided by David Turch & Associates in the amount of $40,200 for the FY 07/08 operating budget. 8 First Amendment to Aareement for Consultant Services between the Citv of Temecula and Albert A. Webb and Associates for the Santa Maraarita Ecoloaical Reserve Area Annexation Environmentallmoact Reoort RECOMMENDATION: 8.1 Approve the first amendment to the agreement between the City of Temecula and Albert A. Webb and Associates for the Santa Margarita Ecological Reserve Area Environmental Impact Report for an additional $30,000. 9 Amendment NO.1 to Food and Beveraae Sales Aareement with A&B Desert Services DBA "Grounds for Hire" RECOMMENDATION: 9.1 Approve Amendment NO.1 to the Food and Beverage Sales Agreement with A&B Desert Services DBA "Grounds for Hire", removing the operations of the coffee cart at the Old Town Temecula Community Theater from the agreement. MOTION: Council Member Comerchero moved to approve the Consent Calendar. Council Member Edwards seconded the motion and voice vote reflected unanimous aooroval. CITY MANAGER REPORT No report at this time. CITY ATTORNEY REPORT With respect to Closed Session, City Attorney Thorson advised that there was no Closed Session and, therefore, no formal action to report. RIMinuteslOg1107 3 ADJOURNMENT At 7:30 p.m. the City Council meeting was formally adjourned to Tuesday, September 25, 2007, 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. Chuck Washington, Mayor ATTEST: Susan W. Jones, CMC City Clerk [SEAL] RIMinuteslOg1107 4 I~-- . , II ITEM NO.3 II , II - . . . I I II II __. . I Approvals City Attorney Director of Finance City Manager ~ 11/2 00...- CITY OF TEMECULA AGENDA REPORT TO: City ManagerlCity Council FROM: Genie Roberts, Director of Finance DATE: September 25, 2007 SUBJECT: List of Demands PREPARED BY: Pascale Brown, Accounting Manager Leah Thomas, Accounting Specialist RECOMMENDATION: That the City Council: 1. Adopt a resolution entitled: RESOLUTION NO. 07- 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. 07- 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, has been reviewed by the City Manager's Office and that the same are hereby allowed in the amount of $3,554,939.57. 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 25th day of September , 2007. Chuck Washington, 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. 07- was duly and regularly adopted by the City Council of the City of Temecula at a meeting thereof held on the 25th day of September , 2007, by the following vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: ABSTAIN: COUNCIL MEMBERS: Susan W. Jones, MMC City Clerk CITY OF TEMECULA LIST OF DEMANDS 09/06/2007 TOTAL CHECK RUN: $ 1,911,465.72 09/13/2007 TOTAL CHECK RUN: 1,154,648.03 09/06/2007 TOTAL PAYROLL RUN: 488,825.82 TOTAL LIST OF DEMANDS FOR 09/25/2007 COUNCIL MEETING: $ 3,554,939.57 DISBURSEMENTS BY FUND: CHECKS: 001 GENERAL FUND $ 775,555.95 165 RDADEV-LOW/MOD SET ASIDE 55,322.20 190 COMMUNITY SERVICES DISTRICT 248,608.77 192 TCSD SERVICE LEVEL B 63,184.05 193 TCSD SERVICE LEVEL C 4,885.55 194 TCSD SERVICE LEVEL D 5,965.04 196 TCSD SERVICE LEVEL "L" LAKE PARK MAINT. 6,823.75 197 TEMECULA LIBRARY F1JND 13,333.68 210 CAPITAL IMPROV PROJ FUND 1,293,637.58 280 REDEVELOPMENT AGENCY - CIP PROJECT 19,533.76 300 INSURANCE FUND 3,473.28 320 INFORMATION SYSTEMS 82,322.25 330 SUPPORT SERVICES 4,118.24 340 FACILITIES 36,789.57 380 RDA - DEBT SERVICE 6,350.00 390 TCSD 2001 COP'S DEBT SERVICE 374,463.43 477 CFD- RORIPAUGH 71,746.65 $ 3,066,113.75 001 GENERAL FUND $ 321,247.29 165 RDA LOW/MOD - 20% SET ASIDE 5,565.25 190 TEMECULA COMMUNITY SERVICES DISTRICT 111,422.79 192 TCSD SERVICE LEVEL B 118.10 193 TCSD SERVICE LEVEL"C" LANDSCAPE/SLOPE 5,714.52 194 TCSD SERVICE LEVEL D 866.20 196 TCSD SERVICE LEVEL "L" LAKE PARK MAINT. 555.27 197 TEMECULA LIBRARY FUND 380.57 280 REDEVELOPMENT AGENCY - CIP PROJECT 3,515.26 300 INSURANCE FUND 1,279.65 320 INFORMATION SYSTEMS 27,410.19 330 SUPPORT SERVICES 3,429.31 340 FACILITIES 7,321.42 488,825.82 TOTAL BY FUND: $ 3,554,939.57 apChkLst Final Check List Page: 1 09/0612007 2:40:41 PM CITY OF TEMECULA Bank: union UNION BANK OF CALIFORNIA Check # Date Vendor Description Amount Paid Check Total 923 08130/2007 005460 U S BANK Debt Service Payment 71,746.65 71,746.65 924 09/06/2007 000245 PERS - HEALTH INSUR PREMIUM PERS Health Admin Cost Payment 76,696.03 Blue Shield HMO Payment 0.00 76,696.03 925 09/06/2007 000444 INSTATAX (EDD) State Disability Ins Payment 22,238.70 22,238.70 926 09/06/2007 000283 INSTATAX (IRS) Federal Income Taxes Payment 89,381.13 89,381.13 927 09/06/2007 001065 NATIONWIDE RETIREMENT Nationwide Retirement Payment 24,343.27 24,343.27 SOLUTION 928 09/06/2007 000246 PERS (EMPLOYEES' PERS ER Paid Member Contr Payment 123,823.24 123,823.24 RETIREMENT) 929 09/06/2007 000389 U S C M WEST (OBRA), OBRA - Project Retirement Payment 4,404.62 4,404.62 NATIONWIDE RETIREMENT 930 09/06/2007 000642 TEMECULA CITY FLEXIBLE Child Care Reimbursement Payment 9,809.80 9,809.80 118324 09/06/2007 009622 A & B DESERT SERVICES coffee cart concession equip 3,568.79 3,568.79 118325 09/06/2007 003552 AFLAC AFLAC Cancer Payment 2,981.16 2,981.16 118326 09/06/2007 001700 A PLUS TEACHING MATERIALS misc supplies:tiny tot pgrm 44.58 44.58 118327 09/06/2007 001916 ALBERT A WEBB ASSOCIATES Jul cnslt svcs:Santa Mgita Eco 20,230.00 Jul cnslt svcs:Santa Mgita Eco 14.48 20,244.48 118328 09/06/2007 009374 ALLEGRO MUSICAL VENTURES Theater piano tuning/maint svcs 135.00 135.00 118329 09/06/2007 003821 ALLSTAR FIRE EQUIPMENT equip repair/maint: stn 84 645.34 645.34 118330 09/06/2007 009767 AL TA LOMA CHARTER INC arts pgm transportation:Getty Ctr 984.50 984.50 118331 09/06/2007 011004 AMERICAN ASPHALT SOUTH INC Aug slurry seal svc:Meadowview 33,697.13 33,697.13 118332 09/06/2007 000747 AMERICAN PLANNING mb: Brown, Steve 10/07-9/08 465.00 465.00 ASSOCIATION Page:1 apChkLst Final Check List Page: 2 09/0612007 2:40:41 PM CITY OF TEMECULA Bank: union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 118333 09/06/2007 000101 APPLE ON E INC temp help ppe 8/11 Tocol, Y 425.88 temp help ppe 8/18 Welton, P 114.66 temp help ppe 8/11 Jama, F 65.52 606.06 118334 09/06/2007 001323 ARROWHEAD WATER INC Bottled wtr svcs: City Hall 523.12 Bottled wtr svcs: Maint Facility 488.80 Bottled wtr svcs: CRC 137.16 Bottled wtr svcs: Library 72.49 Bottled wtr svcs: Ch Museum 45.11 Bottled wtr svcs: Theater 42.92 Bottled wtr svcs: City Hall 42.01 Bottled wtr svcs: Museum 30.29 Bottled wtr svcs: TCC 19.30 Bottled wtr svcs: Skate Park 8.61 1,409.81 118335 09/06/2007 002648 AUTO CLUB OF SOUTHERN Membership: Nelson, Shawn 76.00 CALIF new mb: Gonzales, Gustava 67.00 Membership: Shabec, Rudy 47.00 Membership: Nordgren, Karl 47.00 Membership: Monticino, Dale 47.00 Membership: De la Rosa, George 47.00 Membership: Shea, Richard 47.00 Membership: Serven, Richard 47.00 Membership: Maisey, John 47.00 Membership: Munoz, Mario 47.00 519.00 118336 09/06/2007 004205 BALLET FOLKLORICO TCSD Instructor Earnings 315.00 315.00 118337 09/06/2007 002381 BEAUDOIN, LINDA Retirement Medical Payment 719.20 719.20 118338 09/06/2007 010528 BEDOY ENTERPRISES vehicle repair/maint: stn 12 366.35 366.35 118339 09/06/2007 004040 BIG FOOT GRAPHICS TCSD instructor earnings 735.00 735.00 118340 09/06/2007 004262 BIO-TOX LABORATORIES DUI & Drug analysis: Police 2,236.00 DUI & Drug analysis: Police 663.00 credit:case# 78281 cv billed incorrectly -35.00 2,864.00 118341 09/06/2007 003222 BROCKMEIER, CAROL Retirement Medical Payment 719.20 719.20 118342 09/06/2007 011349 BUTTERFIELD ENTERPRISES refund: temp use permit 150.00 150.00 118343 09/06/2007 000154 CSMFO Operating budget application fee 100.00 100.00 Page2 apChklst Final Check List Page: 3 09/0612007 2:40:41 PM CITY OF TEMECULA Bank: union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 118344 09/06/2007 010349 CALIF DEPT OF CHILD SUPPORT Support Payment Case # DF099118 25.00 25.00 118345 09/06/2007 004228 CAMERON WELDING SUPPLY misc supplies: pw maint div 59.03 59.03 118346 09/06/2007 010434 CATERERS CAFE refreshments:City Attorney lunch 117.60 117.60 118347 09/06/2007 003775 CHAPARRAL HIGH SCHOOL community service grant funding 1,000.00 1,000.00 118348 09/06/2007 005585 CHING, MARIA Reimb:Accela Conf:8/6-8:GrdnGrove 203.85 203.85 118349 09/06/2007 005417 CINTAS FIRST AID & SAFETY First aid supplies: City Hall 109.76 First aid supplies: PW Maint 102.91 212.67 118350 09/06/2007 005708 CLEAR CHANNEL broadcasting: St Painting Festival 760.00 760.00 BROADCASTING INC 118351 09/06/2007 004405 COMMUNITY HEALTH CHARITIES Community Health Charities Payment 107.05 107.05 118352 09/06/2007 004414 COMMUNITY WORKS DESIGN May-Jul inspection svcs: Planning 12,800.00 12,800.00 GROUP 118353 09/06/2007 001264 COSTCO WHOLESALE Merc artist receptions supplies 164.67 164.67 118354 09/06/2007 008810 CROSSTOWN ELECTRICAL & equip repair/mainttraffic cameras 121.27 121.27 DATA 118355 09/06/2007 010649 DCH TEMECULA MOTORS LLC vehicle maintlrepair: code enf 1,174.27 1,174.27 118356 09/06/2007 011345 DORLAND MOUNTAIN ARTS Benefit Concert 8/25-26/07 theater 15,411.92 15,411.92 COLONY 118357 09/06/2007 004192 DOWNS COMMERCIAL FUELING Fuel for City vehicles: PW lnd Dv 589.76 589.76 INC 118358 09/06/2007 011202 EM H SPORTS & FITNESS TCSD instructor earnings 210.00 TCSD instructor earnings 168.00 TCSD instructor earnings 35.00 413.00 118359 09/06/2007 005692 ELMO, ANTHONY Retirement Medical Payment 719.20 719.20 118360 09/06/2007 005115 ENTERPRISE RENT A CAR INC vehicle rental: Planning 107.74 vehicle rental: Planning 107.74 215.48 Page:3 apChkLst Final Check List Page: 4 09/0612007 2:40:41 PM CITY OF TEMECULA Bank: union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 118361 09/06/2007 011203 ENVIRONMENTAL CLEANING Aug janitorial svcs: parks/old town 5,102.00 5,102.00 118362 09/06/2007 001056 EXCEL LANDSCAPE mainline repairs: vail ranch pkwy 503.29 irrigation repairs: medians 437.37 irrigation repairs: sports park 397.46 irrigation repairs: parks 345.46 irrigation repairs: sports park 257.96 Ridgeview mainline repairs 244.28 2,185.82 118363 09/06/2007 000165 FEDERAL EXPRESS INC 08f7-20/07 express mail services 329.47 329.47 118364 09/06/2007 010804 FEHR & PEERS ASSOCIATES Jun Old Town parking study:ROA 95.00 95.00 118365 09/06/2007 003347 FIRST BANKCARD CENTER PAT & OSCARS RESTAURANT OU refreshments:Old Tvvn Mtg 40.07 OU bank charges 38.24 78.31 118366 09/06/2007 008083 FLORES, GWYN Reimb:'07SIRE Roundtable:8/21-24 85.90 85.90 118367 09/06/2007 010493 FOREST CITY COMMERCIAL Sept lease:Police Mall Storefront 1,458.33 1,458.33 MGMT 118368 09/06/2007 010325 FORT DEARBORN LIFE Voluntary Supp Life Insurance Payment 815.80 815.80 118369 09/06/2007 002982 FRANCHISE TAX BOARD Support Payment Case # 452379267 75.00 75.00 118370 09/06/2007 009097 FULL COMPASS SYSTEMS Misc stage supplies Theater 77.50 77. 50 118371 09/06/2007 007866 G C S SUPPLIES INC Computer printers toner/cartridge 1,244.78 Computer printers toner/cartridge 759.49 Computer printers toner/cartridge 635.10 2,639.37 118372 09/06/2007 010028 G M BUSINESS INTERIORS reconfigure cubicles: CM office 1,750.00 1,750.00 118373 09/06/2007 003815 GFB FRIEDRICH & ASSOCIATES May-Jun p'v1l1nt rehab:OePortola 10,719.92 10,719.92 INC 118374 09/06/2007 000177 GLENNIES OFFICE PRODUCTS Office Supplies: Fire 2,577.40 INC Office Supplies: Planning 661.90 3,239.30 118375 09/06/2007 005947 GOLDEN STATE OVERNIGHT 8/1-15 express mail svc:Fire Prey 77.21 77.21 Page:4 apChkLst Final Check List Page: 5 09/0612007 2:40:41 PM CITY OF TEMECULA Bank: union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 118376 09/06/2007 008245 GROVE, JEFF Reimb:Accela Conf:8/6-8:GrdnGrove 125.91 125.91 118377 09/06/2007 004133 H 0 L SOFTWARE LLC Add'l Sentinel User Licenses 40.00 40.00 118378 09/06/2007 004479 HAMPTON INN & SUITES Htl:CACEO cf 9/19-22 #84090391 MP/JV 305.80 305.80 118379 09/06/2007 006250 HAZ MAT TRANS INC Old Twn asbestos tstg:pw06-07(1A) 1,400.00 1,400.00 118380 09/06/2007 001135 HEALTH POINTE MEDICAL pre-employment physicals: HR 230.00 230.00 GROUP INC 118381 09/06/2007 011350 HECKER, JULIE refund: "Take the Fight out of Food" 14.00 14.00 118382 09/06/2007 004811 HEWLETT PACKARD HP Proliant DL320 Server 13,362.32 Video Server: Inf Sys 4,809.96 18,172.28 118383 09/06/2007 005748 HODSON, CHERYL A. Support Payment 6.64 6.64 118384 09/06/2007 000963 HOGAN, DAVID Retirement Medical Payment 719.20 719.20 118385 09/06/2007 000194 I C M A RETIREMENT-PLAN I C M A Retirement Trust 457 Payment 15,102.59 15,102.59 303355 118386 09/06/2007 005683 IS G THERMAL SYSTEMS USA equip repair/maint: stn 73 265.00 265.00 INC 118387 09/06/2007 011228 INLAND PLANNING AND DESIGN Jul consult svcs:Old Town Urban Design 16,371.45 16,371.45 INC 118388 09/06/2007 006914 INNOVATIVE DOCUMENT Aug copier maintlusage:library 491.97 491.97 SOLUTIONS 118389 09/06/2007 006713 INTEGRATED MEDIA SYSTEMS DA 1 's equip:Library Conf Rooms 2,218.23 Mayors touch panel on-site svc 525.00 2,743.23 118390 09/06/2007 001407 INTER VALLEY POOL SUPPLY Pool Sanitizing Chemicals:Aquatics 550.97 INC Pool Sanitizing Chemicals:Aquatics 245.25 Pool Sanitizing Chemicals:Aquatics 235.14 Pool Sanitizing Chemicals:Aquatics 185.33 1,216.69 118391 09/06/2007 003571 INTL ASSN OF PLUMBING AND mb: Harold, Mark 9/07-8/08 250.00 250.00 PageS apChkLst Final Check List Page: 6 09/0612007 2:40:41 PM CITY OF TEMECULA Bank: union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 118392 09/06/2007 003296 INTL CODE COUNCIL 06 Inti code cycle adpt:Fire Prey 7,557.93 3rd edition publications: B&S 283.96 Code Enforcement Textbook 141.76 7,983.65 118393 09/06/2007 010119 IRS-OIC Sup Pmt Offer # 1000497587 452379267 140.11 140.11 118394 09/06/2007 001186 IRWIN, JOHN TCSD instructor earnings 856.80 TCSD instructor earnings 718.20 1,575.00 118395 09/06/2007 004908 JIFFY LUBE 1878 vehicle repair/maint: B&S 36.50 36.50 118396 09/06/2007 004481 KIMLEY HORN & ASSOCIATES Jul eng svc:Santiago Det Basin 11,478.20 11,478.20 INC 118397 09/06/2007 000488 KNOTTS BERRY FARM excursion 7/26: tcsd day camp 1,944.40 excursion 8/8: SMART Pgrm 657.95 excursion 7/31: tcsd day camp 251.30 2,853.65 118398 09/06/2007 011353 KNOWLEDGE LEARNING TCSD Instructor Earnings 4,165.00 CORPORATION TCSD Instructor Earnings 3,062.50 TCSD Instructor Earnings 1,960.00 9,187.50 118399 09/06/2007 000209 L & M FERTILIZER INC equip repair/maint: pw maint div 618.57 618.57 118400 09/06/2007 001085 L N CURTIS & SONS Equipment: Stn 73 825.37 825.37 118401 09/06/2007 000482 LEIGHTON CONSULTING INC Jul geotech svcs:educ project 610.00 610.00 118402 09/06/2007 010656 LEUSCHEN, AI DEE TCSD Instructor Earnings 472.50 TCSD Instructor Earnings 105.00 577.50 118403 09/06/2007 006284 LEWIS & LEWIS ENTERPRISES equip repair/mainttraffic camera 280.00 280.00 118404 09/06/2007 004905 LIEBERT, CASSIDY & WHITMORE Jul HR legal svcs for TE06G-01 277.00 277.00 118405 09/06/2007 003726 LIFE ASSIST INC Medical Supplies: Paramedics 95.24 95.24 118406 09/06/2007 004087 LOWES INC Hardware supplies: Stn 92 166.79 Misc supplies:theater 82.74 249.53 118407 09/06/2007 003782 MAIN STREET SIGNS street signs:PW Maint Div 1,363.04 1,363.04 118408 09/06/2007 004141 MAINTEX INC Custodial Supplies: Parks 572.48 572.48 Page:6 apChkLst Final Check List Page: 7 09/0612007 2:40:41 PM CITY OF TEMECULA Bank: union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 118409 09/06/2007 004068 MANALlLI, AILEEN TCSD Instructor Earnings 168.00 TCSD Instructor Earnings 154.00 TCSD Instructor Earnings 150.50 TCSD Instructor Earnings 124.25 TCSD Instructor Earnings 112.00 TCSD Instructor Earnings 94.50 803.25 118410 09/06/2007 001967 MANPOWER TEMPORARY temp help ppe 08/12 JAlAC/MS 2,401.88 SERVICES temp help wle 08119 JNAC/MS 1,743.32 temp help wle 06/24 M. Sample 238.40 4,383.60 118411 09/06/2007 000944 MCCAIN TRAFFIC SUPPLY INC traffic signal control cabinets:PW 5,105.29 5,105.29 118412 09/06/2007 003076 MET LIFE INSURANCE COMPANY MetLife Dental Insurance Payment 7,978.50 7,978.50 118413 09/06/2007 001384 MINUTEMAN PRESS business cards:B.Obmann/D.Sarmiento 86.74 86.74 118414 09/06/2007 004534 MOBILE SATELLITE VENTURES Aug EOC Stn Satellite Phone SVcs 72.85 72.85 LP 118415 09/06/2007 010797 MUSSER, DAVID TCSD Instructor Earnings 105.00 TCSD Instructor Earnings 84.00 189.00 118416 09/06/2007 001986 MUZAK -SOUTHERN CALIFORNIA Sep music broadcast:Old Town 69.11 69.11 118417 09/06/2007 000233 NELSON, SHAWN reimb:Aug '07 internet services 44.95 44.95 118418 09/06/2007 010244 NO LIMITS SILK SCREEN 1 st Place wtrlSprg Season SWeatshirts 3,962.26 embroidery srvcs:TCSD Sport prgm 248.94 4,211.20 118419 09/06/2007 010167 ODYSSEY POWER CRAC Unit trnsfrlWtr Detection Monitor 1,183.68 1,183.68 CORPORATION 118420 09/06/2007 005656 PAPA Pesticide Appl Sem: R.Shea 9/26/07 65.00 65.00 118421 09/06/2007 006939 PAINT CONNECTION, THE Fagade Prgm: Palomar Inn 3,915.00 3,915.00 118422 09/06/2007 010547 PARKS, RON Retirement Medical Payment 667.98 667.98 118423 09/06/2007 001958 PERS LONG TERM CARE PERS Long Term Care Payment 300.92 300.92 PROGRAM Page:? apChkLst Final Check List Page: 8 09/0612007 2:40:41 PM CITY OF TEMECULA Bank: union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 118424 09/06/2007 000249 PETTY CASH Petty Cash Reimbursement 291.29 291.29 118425 09/06/2007 010510 PFF BANK & TRUST retention/escrow #34-01 022:W.C.Fire Stn 6,990.95 retention/escrow #34-01 022:W.C. Fire stn 2,887.99 9,878.94 118426 09/06/2007 005820 PRE-PAID LEGAL SERVICES INC PrePaid Legal Services Payment 512.15 512.15 118427 09/06/2007 004029 R J M DESIGN GROUP INC Sep '06ldscp srvcs:PBSP 10,899.50 Mar '07ldscp srvcs:PBSP 10,705.00 Oct '06 Idscp srvcs:PBSP 6,816.15 Nov '06ldscp srvcs:PBSP 6,240.51 Dec '06 Idscp srvcs:PBSP 2,661.32 Dec '05 Idscp srvcs:PBSP 1,382.00 Jan '07ldscp srvcs:PBSP 655.00 39,359.48 118428 09/06/2007 009066 RADAR SHOP INC, THE Radar Gun Maint & Repair:Police 453.50 453.50 118429 09/06/2007 007403 RAGAN COMMUNICATIONS, INC. "Leading for Results" subscr:Pln 109.00 109.00 118430 09/06/2007 000271 RBF CONSULTING Jul srvcs:Old Town Infrastructure P~ts 14,291.71 14,291.71 118431 09/06/2007 002110 RENTAL SERVICE Equipment rental: Fire Stn 92 344.26 CORPORATION equip rental:PW Maint 10.22 354.48 118432 09/06/2007 011352 RICHARD NIXON LIBRARY & senior excursion 9/11/07 97.30 97.30 118433 09/06/2007 000352 RIVERSIDE CO ASSESSOR 45 assessor maps:Planning 39.00 39.00 118434 09/06/2007 000418 RIVERSIDE CO CLERK & Jul recording fees:RDA 11.00 11.00 RECORDER 118435 09/06/2007 000418 RIVERSIDE CO CLERK & Res Imprv Prgm: Idle, L. 11.00 11.00 RECORDER 118436 09/06/2007 000406 RIVERSIDE CO SHERIFFS DEPT Jazz Festival:law enforcement 7/14 870.10 870.10 118437 09/06/2007 004907 RIVERSIDE CO TRANSPORTATION Apr-Jun WC Frwy Strategic Study 1,013.26 1,013.26 118438 09/06/2007 010203 ROBERT CLAPPER CONST SRVCSINC Jun prgs pmt #1 O:Wolf Creek Fire stn 62,918.60 Jul prgs pmt #11 :Wolf Creek Fire Stn 25,991.90 88,910.50 Page:8 apChkLst Final Check List Page: 9 09/0612007 2:40:41 PM CITY OF TEMECULA Bank: union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 118439 09/06/2007 001942 S C SIGNS Jul public ntc sign posting: Planning 1,020.00 1,020.00 118440 09/06/2007 007582 SAFEGUARD DENTAL & VISION SafeGuard Vision Plan Payment 1,131.31 1,131.31 118441 09/06/2007 006815 SAN DIEGO, COUNTY OF Support Payment Acct # 581 095025 12.50 12.50 118442 09/06/2007 008529 SHERIFF'S CIVIL DIV - CENTRAL Sup Pmt LO #2007052618 & 2007053052 439.70 439.70 118443 09/06/2007 001544 SKANSKA USA CIVIL WEST Jul prgs pmt #9:Educ.Center grading 48,292.98 48,292.98 118444 09/06/2007 000645 SMART & FINAL INC recreation supplies: fam 223.34 223.34 118445 09/06/2007 000537 SO CALIF EDISON 2005-07 2-27-560-0625 DeerHollow 24,619.11 Aug 2-28-629-0507 Library 11,706.57 Aug 2-02-502-8077 Maint Fac 2,888.59 Aug 2-29-458-7548 Wolf Crk PED 62.23 39,276.50 118446 09/06/2007 001212 SO CALIF GAS COMPANY Aug 091-085-1632-0 T.E.S. Pool 226.54 226.54 118447 09/06/2007 011172 SPARTAN CHASSIS INC 4 seat risers:Fire Engine 95 159.41 159.41 118448 09/06/2007 007762 STANDARD OF OREGON Mandatory Life Insurance Payment 10,894.30 10,894.30 118449 09/06/2007 004221 SUSAN G KOMEN INLAND FY 07108 Sponsorship 25,000.00 25,000.00 VALLEY 118450 09/06/2007 000305 TARGET BANK BUS CARD SRVCS hospitality supplies:theater 18.31 hospitality supplies:theater 17.78 36.09 118451 09/06/2007 001547 TEAMSTERS LOCAL 911 Union Dues Payment 5,276.00 5,276.00 118452 09/06/2007 000515 TEMECULA VALLEY CHAMBER FY 07-08 1st Qtr agreement pmt 37,850.00 37,850.00 OF 118453 09/06/2007 004874 TEMECULA VALLEY NATIONAL refund:sec.depositlsnack bar nls 200.00 200.00 118454 09/06/2007 003140 TEMECULA VALLEY TCSD Instructor Earnings 136.50 TAEKWONDO TCSD Instructor Earnings 109.20 245.70 118455 09/06/2007 000316 THORNHILL, GARY Retirement Medical Payment 568.60 568.60 Page:9 apChklst Final Check List Page: 10 09/0612007 2:40:41 PM CITY OF TEMECUlA Bank: union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 118456 09/06/2007 008894 TIDWEll, RODNEY reimb:uniform shirts 291.18 291.18 118457 09/06/2007 007433 TOVEY SHULTZ CONSTRUCTION Jul prgs pmt #12:Field Oper Ctr 892,729.33 892,729.33 INC 118458 09/06/2007 009957 TRIARCO ARTS & CRAFTS llC Misc supplies:SMART pgrm 232.22 232.22 118459 09/06/2007 005460 U S BANK 2002 RDA trustee admin fees 6,350.00 6,350.00 118460 09/06/2007 000325 UNITED WAY United Way Charities Payment 73.00 73.00 118461 09/06/2007 004261 VERIZON Aug xxx-9897 general usage 89.50 89.50 118462 09/06/2007 010245 VilLA, DOLORES Retirement Medical Payment 557.10 557.10 118463 09/06/2007 009921 WASHINGTON, CHUCK Reimb:lCC Mayor's/Council Cf:7125-28 150.27 150.27 118464 09/06/2007 000339 WEST PUBLISHING CORP 7/21-8/20/07 law library judicial 262.92 262.92 118465 09/06/2007 007223 WESTON, RETA EE Computer Purchase Prgm 1,125.55 1,125.55 118466 09/06/2007 002109 WHITE CAP INDUSTRIES INC misc. maint supplies:pw maint div 257.06 257.06 118467 09/06/2007 004880 WORLEY, Jill ANN entertainment:Hot Smr Nights 8/11/07 500.00 500.00 Grand total for UNION BANK OF CALIFORNIA: 1,911,465.72 Page:10 apChkLst Final Check List Page: 1 09/1312007 3:59:32PM CITY OF TEMECULA Bank: union UNION BANK OF CALIFORNIA Check # Date Vendor Description Amount Paid Check Total 931 09/12/2007 005460 U S BANK 2001 COP Debt Service Pmt 374,463.43 374,463.43 118468 09/06/2007 000175 GOVERNMENT FINANCE appl fee:Budget Presentation Award 500.00 500.00 OFFICERS 118469 09/13/2007 004973 ABACHERLI, L1NDI TCSD instructor earnings 920.00 920.00 118470 09/13/2007 004765 ACTIVE NETWORK INC, THE Safari cash mgmt registration:IS 17,500.00 Safari on-site consultant: Info Sys 4,180.00 Safari maint fee 4/07-8/07: IS 1,823.06 Safari remote AGS integration: IS 1,764.17 Safari consultant airfare: Info Sys 320.02 USB MagStrip Reader: Info Sys 129.30 25,716.55 118471 09/13/2007 008552 ADKINS DESIGN CONSULTING graphic design svcs: Theater 2,663.91 2,663.91 118472 09/13/2007 011363 ALATRISTE, GEUDIEL OR Refund:Prkg Cite 48915 dismissal level 2 487.50 487.50 GLENDA 118473 09/13/2007 003859 ALL ABOUT SELF STORAGE Sept rent units G702 & C332 284.00 284.00 118474 09/13/2007 009767 AL TA LOMA CHARTER INC Knotts transportation: day camp 2,902.32 zoo transportation: day camp 2,670.81 castle park transportation: day camp 2,555.04 waterpark transportation: day camp 1,665.16 Mulligan's transportation: day camp 735.92 cafe transportation: smart pgm 716.63 movie transportation: day camp 449.02 11,694.90 118475 09/13/2007 004240 AMERICAN FORENSIC NURSES Oct Stand By Fee: Police 1,000.00 DUI & drug analysis: Police 359.00 DUI & drug analysis: Police 259.00 1,618.00 118476 09/13/2007 008279 AMERICOMP IN FOSYSTEMS INC computer supplies/equip: library 332.95 computer supplies/equip: library 37.71 370.66 118477 09/13/2007 004623 AQUA TECH ENTERPRISES maint supplies: tes pool 841.15 841.15 118478 09/13/2007 003203 ARTISTIC EMBROIDERY recognition shirts: Finance 204.46 204.46 118479 09/13/2007 002648 AUTO CLUB OF SOUTHERN Membership: Diaz, Jose 67.00 CALIF Membership: Romine, Larry 47.00 114.00 Page:1 apChkLst Final Check List Page: 2 09/1312007 3:59:32PM CITY OF TEMECULA Bank: union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 118480 09/13/2007 011357 BAKER FAMILY TRUST Refund:Prkg Cite 50469 dismissal level 2 325.00 325.00 118481 09/13/2007 003814 BALLREICH, MICHAELA employee computer purchase prgm 1,477.24 1,477.24 118482 09/13/2007 002541 BECKER CONSTRUCTION SRVS channel repairs: PW Maint 9,880.00 INC AC saw cutting citywide:PW Maint 7,650.00 17,530.00 118483 09/13/2007 008286 BRASGA, CAZI employee computer purchase prgm 2,000.00 2,000.00 118484 09/13/2007 000128 BROWN & BROWN OF CALIF INC Ins policy 35391950 2107-2/08 2,771.00 2,771.00 118485 09/13/2007 011373 BURNS, SCOTT Reimb:CrshZne-CrmeZne Cf:8/24:RVSD 245.00 245.00 118486 09/13/2007 011364 CADOGAN, COLLEEN Refund: Zane - Tiny Tots 59.00 59.00 118487 09/13/2007 003138 CAL MAT PW patch truck materials 627.28 PW patch truck materials 129.09 756.37 118488 09/13/2007 005384 CALIF BAGEL BAKERY & DELI refreshments:civic ctr mtg 8/14 200.87 200.87 118489 09/13/2007 000486 CALIF MUNI REVENUE & TAX CMRTA conf 10/17-19 DB Riverside 225.00 225.00 ASSOC 118490 09/13/2007 000502 CALIF MUNI STATISTICS CAFR debt statement: Finance 425.00 425.00 118491 09/13/2007 002520 CALIF T'S SCREEN PRINTING uniform shirts: PW Maint 249.98 249.98 118492 09/13/2007 004604 CALPELRA Acad 111I, Monterey 11/12-13 Gutierrez, 770.00 770.00 118493 09/13/2007 004604 CALPELRA annl cf/Monterey 11/14-16 Gutierrez, B. 750.00 750.00 118494 09/13/2007 004228 CAMERON WELDING SUPPLY Helium tanks rental/refill:TCSD 40.48 40.48 118495 09/13/2007 011361 CAPRA, JUANITA Refund:Prkg Cite 57263 dismissal level 2 325.00 325.00 118496 09/13/2007 009815 CARD QUEST INC 10 cards & ribbon: Info Sys 860.08 860.08 118497 09/13/2007 011360 CAREY, BRYAN J. Refund:Prkg Cite 56768 dismissal level 2 60.00 60.00 Page2 apChklst Final Check List Page: 3 09/1312007 3:59:32PM CITY OF TEMECULA Bank: union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 118498 09/13/2007 006153 CARNAHAN, SUZANNE Refund: Prkg Cite 59789 Dismissallv1 2 325.00 325.00 118499 09/13/2007 000137 CHEVRON USA INC City vehicles fuel: Police 669.71 City vehicles fuel: CM & Police 275.48 945.19 118500 09/13/2007 002989 CLEAR IMAGE WINDOW clean exterior windows: CH 425.00 425.00 CLEANING 118501 09/13/2007 011365 CLOSSICK, LISA Refund: Cameron - Raging Waters 40.00 40.00 118502 09/13/2007 004414 COMMUNITY WORKS DESIGN May-Jul ldscp Insp Svc:Diaz Rd 2,375.03 2,375.03 GROUP 118503 09/13/2007 000442 COMPUTER ALERT SYSTEMS Oct-Dee alarm monitoring citywide 2,507.85 2,507.85 118504 09/13/2007 001923 CONVERSE CONSULTANTS May Design:R. Calif Rd Widening 7,245.00 7,245.00 118505 09/13/2007 011366 COSSE, LAURA Refund: Belly Dancing 43.00 43.00 118506 09/13/2007 001264 COSTCO WHOLESALE refreshments: RR Day/Stn92 408.65 408.65 118507 09/13/2007 003986 COZAD & FOX INC Aug topographic svc:R. CA Rd 3,475.00 3,475.00 118508 09/13/2007 001233 DANS FEED & SEED INC Hay & Straw bails: PW Maint 12.82 12.82 118509 09/13/2007 003945 DIAMOND ENVIRONMENTAL portable restroom svc: Stn 84 115.78 115.78 SRVCS 118510 09/13/2007 004417 DISCOUNT SCHOOL SUPPLY recreation supplies: Ch Museum 57.13 57.13 118511 09/13/2007 004192 DOWNS COMMERCIAL FUELING Fuel for City vehicles: TCSD 1,901.46 INC Fuel for City vehicles: PW Maint 1,493.80 Fuel for City vehicles: PW lnd Dv 507.21 Fuel for City vehicles: B&S 498.67 Fuel for City vehicles: Code Enf 479.52 Fuel for City vehicles: PW CIP 150.75 Fuel for City vehicles:PW/CC/IS 127.54 Fuel for City vehicles: PW Traffic 103.38 Fuel for City vehicles: Police 89.20 5,351.53 Page:3 apChkLst Final Check List Page: 4 09/1312007 3:59:32PM CITY OF TEMECULA Bank: union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 118512 09/13/2007 001669 DUNN EDWARDS CORPORATION paint supplies: PW Maint Diy 1,012.85 paint supplies: PW Maint Diy 115.15 paint supplies: TCSD parks 44.67 1,172.67 118513 09/13/2007 002528 EAGLE GRAPHIC CREATIONS recognition mugs: HR 52.37 52.37 INC 118514 09/13/2007 000395 ECONOMIC DEVELOPMENT EDC qtr lunch:GY,ME,KC 9/27/07 120.00 120.00 CORP 118515 09/13/2007 004829 ELLISON WILSON ADVOCACY Sept state lobbying sycs: CM 3,500.00 3,500.00 LLC 118516 09/13/2007 009535 EUROPEAN DELI refreshments:Wall of Honor Dedication 293.62 293.62 118517 09/13/2007 009953 FEDERAL CLEANING Sept cleaning svc:PD Mall Storefront 410.00 410.00 CONTRACTORS 118518 09/13/2007 010804 FEHR & PEERS ASSOCIATES Jul Old Tovvn pkg study: RDA 2,379.08 2,379.08 118519 09/13/2007 000166 FIRST AMERICAN TITLE lot book rpt:45296 Esmerado Ct 75.00 75.00 COMPANY Page:4 apChkLst Final Check List Page: 5 09/1312007 3:59:32PM CITY OF TEMECULA Bank: union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 118520 09/13/2007 003347 FIRST BANKCARD CENTER MOVIE EXPERIENCE, THE HP Day camp excursion 1,221.00 MARRIOTT HOTEL JC Hotel:07 Ann'l Conf:7/25-28 662.54 US AIRWAYS GR Eden Conf:10/15-17:PBlRW:Dever 605.20 HERTZ RENT-A-CAR JC Car Rental:07 Ann'l Conf:7/25-28 510.87 YOCAHER HP Blank skate boards for TCSD class 457.36 SOURCEMEDIA INC. GR Bond Buyer's Cf:9/1D-12:GR 245.00 UNITED AIRLINES GY Airfare:Dep.Lareau trng 218.10 SOUTHWEST AIRLINES HP Airfare:CA Dir.Summit:8123-24 209.30 FUTURE PUBLISHING HP Magazine subscription 120.59 PENFOLD'S CAFE GY Refrshmnts:Civic Ctr Mtg 88.50 HP Bank chrg-called will be reverse 67.55 GR Bank chrg-called will be reverse 65.63 RR Bank chrg-called will be reverse 63.06 ONTARIO AIRPORT JC Prkg:07 Ann'l Conf:7/25-28 60.00 JC Bank chrg-called will be reverse 58.27 GY Bank chrg-called will be reverse 52.63 BANK OF MEXICAN FOOD, THE GY Refrshmnts:Civic Ctr Mtg 46.44 BJ'S RESTAURANTS, INC. GY Refreshments: EOC Training 40.62 MCGRAW-HILL COMPANIES, THE GR Financial News articles 14.90 NATIONAL PARKING & VALET JC Prkg:07 Ann'l Conf:7/25-28 9.00 ONTARIO CONVENTION CENTER GY Prkg:SCAG Earthquake Cf:818 6.00 EXPEDIA.COM GY Airfare SVc Chg:Dep.Lareau tmg 5.00 HP Credit: Bank charges for GR -15.68 4,811.88 118521 09/13/2007 007866 G C S SUPPLIES INC printer toner/cartridges: Info Sys 469.46 469.46 118522 09/13/2007 010028 G M BUSINESS INTERIORS Furniture & Installation: Library 8,012.01 8,012.01 118523 09/13/2007 011204 GERMAN, JUANITA M. TCSD Instructor earnings 193.20 TCSD Instructor earnings 161.00 TCSD Instructor earnings 79.80 TCSD Instructor earnings 50.40 484.40 118524 09/13/2007 003792 GRAINGER misc supplies: Stn 84 8.81 8.81 PageS apChkLst Final Check List Page: 6 09/1312007 3:59:32PM CITY OF TEMECULA Bank: union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 118525 09/13/2007 000186 HANKS HARDWARE INC Hardware supplies: PWTraffic 422.87 Hardware supplies: City Hall 182.17 Hardware supplies: Code Enf 112.36 Hardware supplies: Theater 79.44 Hardware supplies: TCC 42.62 Hardware supplies: Ch Museum 41.86 Hardware supplies: Library 36.59 Hardware supplies: Info Sys 32.22 Hardware supplies: Aquatics 17.23 Hardware supplies: B&S 13.36 980.72 118526 09/13/2007 004188 HARRIS & ASSOCIATES Jul consult svcs:pavement rehab 32,477.00 32,477.00 118527 09/13/2007 001135 HEALTH POINTE MEDICAL pre-employment physicals: HR 135.00 135.00 GROUP INC 118528 09/13/2007 011355 HERSCHEL FREEMAN AGENCY Performance: Daddy Mack 9/14/07 4,000.00 4,000.00 INC 118529 09/13/2007 010879 HINMAN & CARMICHAEL LLP alcoholic beverage license: Theater 850.00 850.00 118530 09/13/2007 007792 HINTON, BEVERLY L. TCSD instructor earnings 284.90 284.90 118531 09/13/2007 010550 HOME DEPOT, THE crape myrtles/sycamores: RRSP 656.80 rota hammer drill: TCSD parks 407.88 Hardware supplies: PW Maint 18.24 1,082.92 118532 09/13/2007 006492 HRUSKA, ROSEANN Reimb:Map CA GIS:8/29:SanDiego 82.62 82.62 118533 09/13/2007 004217 HYDRO TEK COMPANY misc supplies: PWMaint Div 49.59 49.59 118534 09/13/2007 004406 IGOE & COMPANY INC Aug flex benefit plan pmt 400.00 credit: billed for 50 actual 49 -7.50 392.50 118535 09/13/2007 004833 IMPERIAL PAVING COMPANY INC repair parking lot: City Hall 23,241.00 23,241.00 118536 09/13/2007 001407 INTER VALLEY POOL SUPPLY Pool Sanitizing Chemicals:Aquatics 285.38 INC Pool Sanitizing Chemicals:Aquatics 191.33 476.71 118537 09/13/2007 003296 INTL CODE COUNCIL 06 Inti Code Cycle: Fire Prey 238.28 238.28 118538 09/13/2007 001186 IRWIN, JOHN TCSD instructor earnings 109.20 109.20 Page:6 apChkLst Final Check List Page: 7 09/1312007 3:59:32PM CITY OF TEMECULA Bank: union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 118539 09/13/2007 004884 J & W REDWOOD LUMBER CO misc supplies: PW Maint Div 47.88 47.88 INC 118540 09/13/2007 003046 K FRO G 95.1 FM RADIO broadcasting:Hot Summer Nights 2,275.00 2,275.00 118541 09/13/2007 006302 KIDZ LOVE SOCCER, INC TCSD instructor earnings 861.00 TCSD instructor earnings 747.60 TCSD instructor earnings 623.00 TCSD instructor earnings 459.20 TCSD instructor earnings 459.20 TCSD instructor earnings 459.20 TCSD instructor earnings 436.10 TCSD instructor earnings 401.80 TCSD instructor earnings 401.80 TCSD instructor earnings 401.80 TCSD instructor earnings 344.40 TCSD instructor earnings 114.80 5,709.90 118542 09/13/2007 000548 KIPLINGER LETTER, THE Subscription: Roberts, Genie 73.00 73.00 118543 09/13/2007 010120 L G C INLAND INC Geotech Svc:Verizon Fiber Optic 8,174.44 8,174.44 118544 09/13/2007 003726 LIFE ASSIST INC Medical Supplies: Paramedics 133.97 133.97 118545 09/13/2007 008474 L1NKOGLE, MYKELLA Refund: Kyla - Improvisation 130.00 130.00 118546 09/13/2007 004087 LOWES INC Hardware Supplies: Theater 217.04 Hardware Supplies: Theater 39.68 Hardware Supplies: Theater 34.39 credit: hardware supplies returned -39.68 251.43 118547 09/13/2007 010204 M T G L INC 2/18-5/31/07 prof svcs:Field Oper ctr 15,380.00 15,380.00 118548 09/13/2007 003782 MAIN STREET SIGNS Str signs replacement:Tem Prkwy 2,170.09 C.Museum street signs/sign supplies:PW 790.89 2,960.98 118549 09/13/2007 004141 MAINTEX INC Custodial Supplies:TCC 493.37 Custodial Supplies:Parks 467.15 Custodial Supplies:Theater 429.10 Custodial Supplies:Old Town 303.68 1,693.30 118550 09/13/2007 011356 MANNING, CECEILlA OR STEVEN Refund:Prkg Cite 60015 dismissal level 1 10.00 10.00 Page:? apChkLst Final Check List Page: 8 09/1312007 3:59:32PM CITY OF TEMECULA Bank: union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 118551 09/13/2007 011179 MC MILLIN REDHAWK LLC TCSD Instructor Earnings 700.00 TCSD Instructor Earnings 210.00 TCSD Instructor Earnings 84.00 994.00 118552 09/13/2007 011367 MCKOWN, MAUREEN refund:excurs/Nixon Libr-StevelMaureen 25.00 25.00 118553 09/13/2007 006571 MELODY'S AD WORKS consulting srvcs:old town 4,000.00 4,000.00 118554 09/13/2007 009541 MEYER AND ASSOCIATES Jul dsgn srvcs:TCC Expansion 26,501.25 Jun dsgn srvcs:TCC Expansion 9,517.00 36,018.25 118555 09/13/2007 008091 MILLMORE'S WAA CREW City vehicles detailing svcs:PW Depts 150.00 City vehicles detailing svcs:PW Depts 125.00 City vehicles detailing svcs:B&S 25.00 City vehicle detailing svcs:Planning 20.00 320.00 118556 09/13/2007 002139 NORTH COUNTY TIMES Aug recruitment ads:TCSD 3,107.32 Aug Hot Smr Nights ads:RDA 1,642.76 Aug display ads:Theater 974.94 Aug public ntc ads:City Clerk/Planning 329.30 6,054.32 118557 09/13/2007 009570 o C B REPROGRAPHICS Aug dup blueprints:various City prjts 138.16 138.16 118558 09/13/2007 003964 OFFICE DEPOT BUSINESS SVS misc office supplies:Police OT. stn 527.40 DIV credit:items returned/Police mall stn -40.60 486.80 118559 09/13/2007 002105 OLD TOWN TIRE & SERVICE City Vehicle RepairlMaint Svcs 508.35 City Vehicle Repair/Maint SVcs 409.49 City Vehicle Repair/Maint SVcs 234.01 City Vehicle Repair/Maint SVcs 34.27 1,186.12 118560 09/13/2007 001171 ORIENTAL TRADING COMPANY misc supplies:high hopes prgm 101.35 INC misc supplies:C. Museum 20.85 misc supplies:C. Museum 12.95 135.15 118561 09/13/2007 011359 PAQUETTE, DENNIS OR Refund:Prkg Cite 57027 reduced 50.00 50.00 CHRISTINA 118562 09/13/2007 000359 PARKER, HERMAN Reimb: CA Dir.Summit:8123-24:Sac 44.40 44.40 118563 09/13/2007 002099 PASCOE MANAGEMENT LLP Sept restroom rental:old town 826.00 826.00 118564 09/13/2007 002652 PAT & OSCARS RESTAURANT rirshmnts:High Hopes Anniv. 1,031.28 1,031.28 118565 09/13/2007 002498 PETRA GEOTECHNICAL INC Jul geotech srvcs: Field Oper Ctr 2,587.50 2,587.50 Page:8 apChkLst Final Check List Page: 9 09/1312007 3:59:32PM CITY OF TEMECULA Bank: union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 118566 09/13/2007 000249 PETTY CASH Petty Cash Reimbursement 533.96 533.96 118567 09/13/2007 009425 PRUDENT PUBLISHING Annual Christmas Card Orders:TCSD 194.51 194.51 COMPANY 118568 09/13/2007 004529 QUAID TEMECULA HARLEY- Aug repair & maint:Police motorcycles 4,906.91 4,906.91 DAVIDSON 118569 09/13/2007 002612 RADIO SHACK INC mise equipment:lnfo Sys 11.84 11.84 118570 09/13/2007 000728 RAMSEY BACKFLOW & Backflow test/repair: medians & parks 396.00 PLUMBING Backflow testlrepair: medians & parks 286.00 682.00 118571 09/13/2007 002176 RANCHO CALIF BUS PK ASSOC Oct-Dee Bus.Prk Assn Dues:Diaz Rd 1,751.72 Oct-Dee bus.prk assn dues:City Hall 1,273.98 Oct-Dee bus.prk assn dues:Field Op Ctr 1,051.03 4,076.73 118572 09/13/2007 000271 RBF CONSULTING Julldscp dsgn:\l\linchester Rd 4,656.49 4,656.49 118573 09/13/2007 004498 REPUBLIC INTELLIGENT Traffic sig repair&maint: Marg/Moraga 700.00 Traffic sig repair&maint: Marg/R.Vista 700.00 Traffic sig repair&maint: \l\linch/Diaz 700.00 2,100.00 118574 09/13/2007 000268 RIVERSIDE CO HABITAT Aug '07 K-Rat payment 250.00 250.00 118575 09/13/2007 001592 RIVERSIDE CO INFO Jul radio rental & maint:Police 1,658.28 1,658.28 TECHNOLOGY 118576 09/13/2007 003587 RIZZO CONSTRUCTION INC install (5) lights in gazebo: harveston 5,600.00 5,600.00 118577 09/13/2007 005026 ROAD WORKS, INC. Tri Cntrl Cert Sem:Ludwig/Gonzlez 10/8-9 200.00 200.00 118578 09/13/2007 000459 RUFF N TUMBLE INC TCSD Instructor Earnings 54.60 54.60 118579 09/13/2007 010803 SEAN MALEK ENGINEERING & Jun prgs pmt #2:R.C.Rd Widen 89,496.00 89,496.00 CONST 118580 09/13/2007 009499 SIDOTI, CELlNE Refund: Tiny Tots/1040.303 59.00 59.00 118581 09/13/2007 009746 SIGNS BY TOMORROW various signs: planning dept. 1,406.50 1,406.50 118582 09/13/2007 000645 SMART & FINAL INC Mise Supplies:Human Resources 302.34 302.34 Page:9 apChkLst Final Check List Page: 10 09/1312007 3:59:32PM CITY OF TEMECULA Bank: union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 118583 09/13/2007 000537 SO CALIF EDISON Sept 2-01-202-7330 various mtrs 63,037.43 Sept 2-01-202-7603 arterial st lights 23,134.26 Aug 2-02-351-5281 CRC 9,198.62 Aug 2-05-791-8807 various mtrs 9,012.38 Aug 2-27-805-3194 Theater 6,652.14 Aug 2-00-397-5059 various mtrs 3,893.37 Aug 2-20-798-3248 C. Museum 2,315.26 Aug 2-10-331-2153 TCC 1,911.01 Sept 2-28-171-2620 Police Mall Stn 707.24 Aug 2-29-657-2563 Various TCSD 231.31 Aug 2-29-479-2981 Hghwy 79S 97.38 Aug 2-01-202-7330 various mtrs 8.02 120,198.42 118584 09/13/2007 000519 SOUTH COUNTY PEST CONTROL pest control services:Vail Ranch Prk 84.00 84.00 INC 118585 09/13/2007 007851 SOUTH COAST HEATING & AIR sound cabinet hvac repair: old town 112.50 112.50 118586 09/13/2007 010821 SOUTHWEST AREA ACTIVITIES refund :sec.depositlCRC 150.00 150.00 118587 09/13/2007 011362 SPENCERHOLLlS, KARl Refund:Prkg Cite 55151 dismissal level 2 325.00 325.00 118588 09/13/2007 005786 SPRINT Jul 26-Aug 25 cellular usage/equip 7,345.98 7,345.98 118589 09/13/2007 006145 STENO SOLUTIONS Aug transcription srvcs:Police 953.60 953.60 TRANSCRIPTION 118590 09/13/2007 000465 STRADLEY, MARY KATHLEEN TCSD Instructor Earnings 705.60 TCSD Instructor Earnings 302.40 1,008.00 118591 09/13/2007 011358 SUH, YOUNG WOOK Refund:Prkg CiteD491386 dismissal 1\11 2 325.00 325.00 118592 09/13/2007 000305 TARGET BANK BUS CARD SRVCS recreation supplies:CRC 57.50 57.50 118593 09/13/2007 010679 TEMECULA AUTO City vehicle maint: Fire Prev 112.18 112.18 REPAIR/RADIATOR 118594 09/13/2007 008292 TEMECULA DIESEL AUTO & patch truck repair & maint:pw maint 5,067.52 TRUCK patch truck repair & maint:pw maint 638.32 5,705.84 118595 09/13/2007 011231 TEMECULA MARINE CENTER INC. ck/repair boat cool system: harveston 300.00 300.00 Page:10 apChkLst Final Check List Page: 11 09/1312007 3:59:32PM CITY OF TEMECULA Bank: union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 118596 09/13/2007 000307 TEMECULA TROPHY COMPANY Dedication plaque: fire stn 92 1,566.69 1,566.69 118597 09/13/2007 000306 TEMECULA VALLEY PIPE & Aug plumbing supplies: Parks/CRC 898.90 898.90 SUPPLY 118598 09/13/2007 004274 TEMECULA VALLEY SECURITY locksmith services: parks/city hall 34.48 34.48 CENTR 118599 09/13/2007 003862 THYSSENKRUPP Elevator srvc call1no power: t'v1l1 364.50 364.50 ELEVATOR.BRNCH 37 118600 09/13/2007 010276 TIME WARNER CABLE Sept high speed internet City Hall 183.38 Aug high speed internet CW 54.95 238.33 118601 09/13/2007 007766 UNDERGROUND SERVICE ALERT Aug undrgrnd svcs alert tickets:PW 483.20 483.20 118602 09/13/2007 006807 VANIR CONSTRUCTION Jul Constr Mgmt:Wolf Creek Fire Stn 18,488.27 18,488.27 118603 09/13/2007 004261 VERIZON Aug xxx-8900 GIS Library 756.61 Aug xxx-7530 GIS Library 520.95 Aug xxx-5509 general usage 146.51 Aug xxx-1540 Old Town Prk Lot 89.50 Aug xxx-0049 general usage 44.40 Aug xxx-1999 general usage 37.61 Aug xxx-5180 79S Irrg Cntr 35.62 Aug xxx-6620 general usage 31.56 1,662.76 118604 09/13/2007 004279 VERIZON CALIFORNIA INC. Aug access-(EQN) C. Mus.phone line 658.23 Aug access-(E05) CRC phone line 356.16 1,014.39 118605 09/13/2007 010283 W B PRODUCTIONS Deposit/prof srvcs:FIT 51<11 OK finale 1,000.00 1,000.00 118606 09/13/2007 000621 WESTERN RIVERSIDE COUNCIL Aug '07 TUMF Payment 212,087.65 212,087.65 OF 118607 09/13/2007 000621 WESTERN RIVERSIDE COUNCIL Clean Cities CampaignTcsd 5,000.00 5,000.00 OF 118608 09/13/2007 008402 WESTERN RIVERSIDE COUNTY Aug '07 MSHCP payment 7,820.00 7,820.00 118609 09/13/2007 004774 WOODCREST UNIFORMS Uniform srvcs:Police 91.75 91.75 118610 09/13/2007 010193 WOOLSTENHULME, LUCIA TCSD Instructor Earnings 232.40 232.40 Page:11 apChkLst 09/1312007 3:59:32PM Bank: union UNION BANK OF CALIFORNIA Check # Date Vendor 118611 09/13/2007 003776 ZOLL MEDICAL CORPORATION Final Check List CITY OF TEMECULA (Continued) Description Amount Paid Page: 12 Misc Medical Supplies:Paramedics 1,730.04 Check Total credit:item returned/Paramedics -134.69 Grand total for UNION BANK OF CALIFORNIA: 1,595.35 1,154,648.03 Page:12 apChkLst 09/1312007 3:59:32PM Final Check List CITY OF TEMECULA Page: 13 145 checks in this report. Grand Total All Checks: 1,154,648.03 Page:13 apChkLst 09/0612007 2:40:41 PM Final Check List CITY OF TEMECULA Page: 11 152 checks in this report. Grand Total All Checks: 1,911,465.72 Page:11 I~-- . , II ITEM NO.4 II , II - . . . I I II II __. . I Approvals City Attorney Director of Finance City Manager ~ ell ~ CITY OF TEMECULA AGENDA REPORT TO: City ManagerlCity Council FROM: William G. Hughes, Director of Public Works DATE: September 25, 2007 SUBJECT: Purchase and Sale Agreement for certain property rights on property located at 45024 Muirfield Drive PREPARED BY: Greg Butler, Deputy Director of Public Works - CIP Carol A. Chiodo, Property Agent RECOMMENDATION: That the City Council: 1. Approve substantially in the form attached hereto the Purchase and Sale Agreement between the City of Temecula and Christopher and Tammy Mitchell, forthe purchase of an approximate 5,280 square foot permanent easement and an approximate 80 square foot area in fee for the widening of Pechanga Parkway at a purchase price of $6,500.00 plus escrow fees. 2. Authorize the Finance Department to disburse the amount of $6,500 to cover the cost of the easements plus the associated escrow fees not to exceed $1,000.00 3. Authorize the Mayor to execute the Purchase and Sale Agreement, approve and execute any necessary documents and to take all necessary actions to complete this acquisition, including without limitation, all escrow instructions. BACKGROUND: This project was approved in the Capital Improvement Program for Fiscal Years 2008-2012. The scope of work for this project includes the construction of full-width street improvements of Pechanga Parkway from south of the Pechanga Parkway Bridge to Wolf Valley Road. Full width is 134 feet from south of Pechanga Parkway Bridge to Via Gilberto, and 110 feet from Via Gilberto to Wolf Valley Road. The project includes the design, acquisition, environmental studies, mitigation, and construction of road improvements to include curb, gutter, sound wall, and storm drain facilities on Pechanga Parkway from Deer Hollow Way to Temecula Creek. On June 12, 2007 the City Council set just compensation for the property interests and authorized the Director of Public Works to make offers and negotiate the acquisition of required property rights for the construction of the Pechanga Parkway improvements. The City delivered the original offer on June 15,2007 to Christopher and Tammy Mitchell for the property interests required for the project. The offer was for the purchase of an approximate 5,280 square foot permanent easement and an approximate 80 square feet area in fee from the real property, commonly know as 45024 Muirfield Drive, Temecula, California and identified as Riverside County Tax Assessor's Parcel Number 961-043-011 for the public use, namely street purposes and all uses necessary or convenient thereto. The negotiations have successfully concluded and the attached Purchase and Sale Agreement describes the details of the acquisition of the required property interests to construct the Pechanga Parkway improvements. The purchase amount of $6,500.00, is the amount the City Council previously authorized for this purchase and offered for these property interests. FISCAL IMPACT: Funds for this acquisition are available in the Pechanga Parkway Improvements - Phase II, Capital Improvement Project in the 2007-2008 Budget, Account No. 210.165.668. ATTACHMENTS: Purchase and Sale Agreement PURCHASE AND SALE AGREEMENT AND JOINT ESCROW INSTRUCTIONS BETWEEN CITY OF TEMECULA AND CHRISTOPHER AND TAMMY MITCHELL (5,280 SQUARE FOOT PERMANENT EASEMENT AND FEE ACQUISITION OF 80 SQUARE FOOT AREA - ASSESSOR'S PARCEL NUMBER 961-043- 011) THIS PURCHASE AND SALE AGREEMENT AND JOINT ESCROW INSTRUCTIONS ("Agreement") is dated and entered into as of September 25,2007 ("Effective Date") by and between CHRISTOPHER AND TAMMY MITCHELL ("Seller"), and the CITY OF TEMEC1.TLA, a municipal corporation ("City"), and constitutes both an agreement to purchase and sell real property between the parties and the parties' escrow instructions directed to First American Title Company ("Escrow Holder"). RECITALS A Seller is the sole fee owner and resident of the property commonly known as 45024 Muirfield Drive, Temecula, and identified as Riverside County Tax Assessor's Parcel Number 961-043-011 ("Larger Parcel"). The Larger Parcel is improved with a single-family residence and is approximately 17,070 gross square feet in size (8,523 square feet in size, net of the existing drainage easement). B. The City wishes to purchase and Seller desires to grant to the City a 5,280 square foot penuanent easement and an approximate 80 square foot area in fee for public purposes, nanlely public street purposes and all uses necessary or convenient thereto in connection with the City's proposed improvements to and widening of Pechanga Parkway. The 5,280 square foot permanent easement and the 80 square foot fee area are referred to below collectively as "Property". The 5,280 square foot permanent easement is described more particularly in Exhibit "A" hereto and depicted on Exhibit "B" hereto. TIle 80 square foot fee area is described more particularly in Exhibit "c" and depicted on Exhibit "D" hereto. Exhibits "A" through "D" are incorporated in this Agreement by this reference. C. On June I, 2007 the Property was appraised at $6,500.00 (Six TIlOusand Five Hundred Dollars). On June 15, 2007, the City made a written offer to purchase the Property for $6,500.00. Negotiations ensued, and this Agreement resulted. D. Seller desires to sell and the City desires to buy the Property on the tenus and conditions set forth herein. NOW THEREFORE, in consideration ofthe foregoing Recitals and tenus and conditions set forth below, which are incorporated herein by this reference, the parties hereto agree as follows: III IR6\1 1627\957223-Mitchell -1- 1. Purchase and Sale. On the Close of Escrow (as defined below), Seller agrees to grant the Property to the City, and the City agrees to acquire the Property from Seller, on the tenns and conditions set forth below. 2. Oneninl' and Closinl' of Escrow. Within five (5) days after the Effective Date of this Agreement, City shall deliver a fully-executed copy of this Agreement to Escrow Holder. For purposes of this Agreement, "Opening of Escrow" shall mean the date on which Escrow Holder receives a fully executed copy ofthis Agreement. The "Close of Escrow" shall be the date that Grant of Easement and Grant Deed for the Property in favor of the City are recorded in the Official Records ofthe Riverside County Recorder's Office. The Close of Escrow shall occur after the perfonnance of all duties and obligations under this Agreement. TIle Close of Escrow shall be on the date that is not later than the first business day occurring thirty (30) days after the date ofthis Agreement. Before the Close of Escrow, Seller shall solely bear all risk ofloss and damage to the Property from any source whatsoever. 3. Purchase Price and Additional Consideration. TIle total Purchase Price to be paid by the City for the Property is the sum of $6,500.00 (Six TIlOusand Five Hundred Dollars) ("Purchase Price"), which sum shall be paid to Seller in full in cash on the Close of Escrow. No attempt has been made to assign value to any lesser interest in the Property, including any leasehold estate. The Purchase Price, therefore, is the total price for the Property without distinction or separation for various interests that may be held in the Property. Seller shall be responsible for any apportionment or allocation ofthe Purchase Price if required for any separately held interests that may exist. 4. Title and Title Insurance. Upon the Opening of Escrow, Escrow Holder shall obtain and issue a title commitment for the Property. Escrow Holder shall also request two copies each of all instmments identified as exceptions on said title commitment. Upon receipt ofthe foregoing, Escrow Holder shall deliver these instmments and the title commitment to the City and Seller. The City's easement interests to the Property shall be insured at the Close of Escrow by a CLTA Owner's Standard Coverage Policy of Title Insurance in the amount ofthe Purchase Price (the "Policy"). TIle Policy of Title Insurance provided for pursuant to this Section shall insure the City's easement interests in the Property free and clear of all liens, encumbrances, and restrictions, subject only to the following pennitted conditions oftitle ("Permitted Title Exceptions"): a. Real property taxes for the then current tax fiscal year, which are a lien not then due and payable; b. TIle applicable zoning, building and development regulations of any municipality, county, state or federal jurisdiction affecting the Property; and III IR6\1 1627\957223-Mitchell -2- c. TIle non-monetary exceptions approved by the City within fifteen (15) business days after the date the City receives from Escrow Holder the title commitment and legible copies of all instruments noted as exceptions therein. If the City unconditionally disapproves any such exceptions, Escrow shall thereupon terminate, all funds deposited therein shall be refunded to the City (less the City's share of escrow cancellation charges), and this Agreement shall be of no further force or effect. Ifthe City conditionally disapproves any such exceptions, then Seller shall use Seller's best efforts to cause such exceptions to be removed by the Close of Escrow. If such conditionally disapproved non-monetary exceptions are not removed by the Close of Escrow, the City may, at its option, either accept the Property subject to such encumbrances, or terminate the Escrow and receive a refund of all funds deposited into Escrow (less the City's share of escrow cancellation charges), if any, and this Agreement shall thereupon be of no further force or effect. At the Close of Escrow, the City's interests in the Property shall be free and clear of all monetary encumbrances. 5. Grant of Easement and Grant Deed. Seller covenants and agrees to deposit with Escrow Holder prior to the Close of Escrow a Grant of Easement fortlle 5,280 square foot penllanent easement and Grant Deed for the 80 square foot fee area duly executed and acknowledged by Seller, granting to the City the permanent easement and fee interest in the Property. The Grant of Easement and Grant Deed shall be in a form provided by the City and shall be approved by the City prior to recording. The easement granted shall be nonexclusive and shall be consistent with this Agreement. 6. Authorization to Record Documents and Disburse Funds. Escrow Holder is hereby authorized to record the documents and disburse the funds and documents called for hereunder upon the Close of Escrow, provided each ofthe following conditions has then been fulfilled: a. Escrow Holder can issue in favor ofthe City the Policy, showing the City's interests in the Property vested in the City subject only to the Permitted Title Exceptions; b. Escrow Holder shall have received the City's notice of approval or satisfaction or waiver of all ofthe contingencies to the City's obligations hereunder, as provided for in Section 13; and c. Seller shall have deposited with Escrow Holder the Grant of Easement and Grant Deed required by Section 5. Unless otherwise instructed in writing, Escrow Holder is authorized to record at the Close of Escrow any instrument delivered through this Escrow if necessary or proper for issuance of the Policy, including the Grant of Easement and Grant Deed. III IR6\1 1627\957223-Mitchell -3- 7. Escrow Charl'es and Prorations. TIle City shall pay the cost ofthe CLT A Owner's Standard Coverage Policy of Title Insurance, the Escrow fees and Escrow Holder's customary out-of-pocket expenses for messenger services, long distance telephone, etc. TIle City shall pay any fees or costs relating to recording ofthe Grant of Easement and Grant Deed with the Recorder's Office of the County of Riverside. City shall pay any documentary or other local transfer taxes, and any other recording fees. Taxes, assessments, penalties, interest charges, and delinquency charges of every kind levied upon or assessed against the Property, except as otherwise expressly set forth herein, shall be paid by Seller through Escrow to the Close of Escrow. Ifthe Escrow shall fail to close through no fault of either party or the fault ofthe City, the City shall pay all Escrow cancellation charges. 8. License to Enter. Seller hereby grants to the City and its authorized agents, contractors, consultants, assigns, attorneys, accountants and other representatives an irrevocable license to enter upon the Property during regular business hours for the limited purpose of making inspections and other examinations ofthe Property, including, but not limited to, the right to perform soil and geological tests of the Property and an environmental site assessment thereof TIle City shall give Seller 3 (three) days prior written notice before going on the Property. The City does hereby indemnify and forever save Seller, Seller's heirs, successors and assigns, and the Property, free and harnlless from and against any and all liability, loss, damages and costs and expenses, demands, causes of action, claims or judgments, whether or not arising from or occurring out of any damage to the Property as a result of any accident or other occurrence at the Property which is in any way connected with the City's inspections or non-pernlanent improvements involving entrance onto the Property pursuant to this Section. 9. Warranties and Renresentations of Seller. Seller hereby represents and/or warrants to the City the following, it being expressly understood and agreed that all such representations and/or warranties are to be tme and correct as ofthe Close of Escrow and shall survive the Close of Escrow: a. Seller hereby represents to the best of Seller's knowledge that (i) on the Close of Escrow the Property shall be free and clear of any and all hazardous or toxic substances, materials, and waste, including, but not limited to, asbestos; (ii) the Property is in compliance with all applicable statutes and regulations, including environmental, health and safety requirements; and (iii) Seller has no notice of any pending or threatened action or proceeding arising out of the condition ofthe Property or alleged violation of envirOlilllental, health or safety statutes, ordinance or regulations. b. Seller hereby warrants and represents that neither this Agreement nor anything provided to be done hereunder, including the transfer ofthe Property to the City, shall at Close of Escrow violate any contract, agreement or instmment to which III IR6\1 1627\957223-Mitchell -4- Seller is a party, or which affects the Property, and the sale ofthe Property herein contemplated does not require the consent of any party not a signatory hereto. c. Seller hereby warrants and represents that there are no mechanics', materialmen's or similar claims or liens presently claimed against the Property for work performed or commenced prior to the date of this Agreement. Seller agrees to hold the City harmless from all costs, expenses, liabilities, losses, charges, fees, including attorney fees, arising from or relating to any such lien or any similar lien claimed against the Property and arising from work perfornled or commenced prior to the Close of Escrow by or on behalf of Seller. d. Seller hereby warrants and represents that there are no written or oral leases or contractual right or option to rent, lease, purchase, or otherwise enjoy possession, rights or interest of any nature in and to the Property or any part thereof, and no persons other than Seller has any right of possession to the Property or any part thereof e. Seller hereby warrants and represents that Seller has no knowledge of any pending, threatened or potential litigation, action or proceeding against Seller or any other Party before any court or administrative tribunal that is in any way related to the Property. f Seller hereby represents that to the best of Seller's knowledge, Seller is the sole owner ofthe Property, free and clear of all liens, encumbrances, easements, encroachments from adjacent properties, or rights of way of any nature, other than those that may appear of record in the official records ofthe Office of the Recorder, County of Riverside. 10. Renresentations and Warranties ofCitv. City hereby represents and warrants to the Seller the following, it being expressly understood and agreed that all such representations and warranties are to be true and correct as ofthe Close of Escrow and shall survive the Close of Escrow: a. City has taken all required action to pernlit it to execute, deliver, and perform its obligations under this Agreement. b. City has the power and authority to execute and deliver this Agreement and to carry out its obligations hereunder and consummate the transaction contemplated herein. 11. Full Payment ofObli!!ations ofCitv. a. It is understood and agreed between Seller and the City that the payments made to Seller as set forth in this Agreement represent an all-inclusive settlement and is full and complete payment of compensation for the acquisition of the interests pertaining to the Property and includes and satisfies any and all other payments, if any, that may be required by law to be paid to Seller arising out ofthe acquisition of III IR6\1 1627\957223-Mitchell -5- the Property and displacement ofthe Seller and all persons residing on the Property, and specifically includes, but is not limited to, just compensation for the Property, including, but are not limited to, claims for severance and other damages, attorney's fees, interest, expenses oflitigation, expert's fees, precondemnation damages, inverse condemnation, or any other damages of every kind and nature suffered or to be suffered by Seller by reason ofthe City's acquisition ofthe easements comprising the Property or the Project for which the City is acquiring the Property. 12. Releases. a. This Agreement is a voluntary agreement and Seller, on behalf of itself and its heirs, successors and assigns, hereby fully releases the City, its officials, counsel, employees, and agents, from all claims and causes of action by reason of any danlage which has been sustained, or may be sustained, as a result ofthe City's efforts to acquire the Property or any preliminary steps thereto. Seller further releases and agrees to hold the City harmless from any and all claims and causes of action by reason of any leasehold interest in the Property. b. Seller acknowledges that it may have sustained damage, loss, costs or expenses which are presently unknown and unsuspected, and such damage, loss, costs or expense which may have been sustained, may give rise to additional damages, loss, costs or expenses in the future. Nevertheless, Seller hereby acknowledges that this Agreement has been negotiated and agreed upon in light ofthat situation, and hereby expressly waives any and all rights which Seller may have under California Civil Code Section 1542, or under any statute or common law or equitable principle of similar effect. California Civil Code Section 1542 provides as follows: "A general release does not ex1:end to claims which the 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. " Seller's Initials City's Initials c. 111is Section 12 shall survive the Close of Escrow. 13. City's Continl'encies and Satisfaction. For the benefit ofthe City, the Closing of Escrow and the City's obligation to consummate the acquisition ofthe Property shall be contingent upon and subject to the occurrence of all ofthe following (or the City's written waiver thereof, it being agreed that the City can waive any or all such contingencies) on or before the Close of Escrow: a. 111at as ofthe Close of Escrow the representations and warranties of Seller contained in this Agreement are all tme and correct. III IR6\1 1627\957223-Mitchell -6- b. TIle deposit with Escrow Holder ofthe Grant of Easement and Grant Deed pursuant to Section 5 above. c. Escrow Holder's commitment to issue in favor ofthe City of a CLT A Standard Coverage Owner's Policy of Title Insurance with liability equal to the Purchase Price showing the City's interests in the Property subject only to the Permitted Title Exceptions. d. The City's approval prior to the Close of Escrow of any environmental site assessment, soils or geological reports, or other physical inspections ofthe Property or the underlying real property that the City might perform prior to the Close of Escrow. 14. Certification of Non-Forei!!n Status. Seller covenants to deliver to Escrow a certification of Non-Foreign Status in accordance with LR.C. Section 1445, and a similar notice pursuant to Califomia Revenue and Taxation Code Sections 18805 and 26131, prior to the Close of Escrow. 15. Default. In the event of a breach or default under this Agreement by either the City or Seller, the non-defaulting party shall have, in addition to all rights available at law or equity, the right to temlinate this Agreement and the Escrow for the purchase and sale of the Property, by delivering written notice thereof to the defaulting party and to Escrow Holder, and ifthe City is the non-defaulting party, the City shall thereupon promptly receive a refund of all prior deposits, if any. Such termination of the Escrow by a non- defaulting party shall be without prejudice to the non-defaulting party's rights and remedies at law or equity. 16. Notices. All notices and demands shall be given in writing by certified mail, postage prepaid, and retum receipt requested, or by personal delivery. Notices shall be considered given upon the earlier of (a) personal delivery, (b) two (2) business days following deposit in the United States mail, postage prepaid, certified or registered, retum receipt requested, or (c) one (1) business day following deposit with an ovemight carrier service. A copy of all notices shall be sent to Escrow Holder. Notices shall be addressed as provided below for the respective party. The parties agree, however, that if any party gives notice in writing of a change of name or address to the other party, notices to such party shall thereafter be given as demanded in that notice: CITY: City of T emecula 43200 Business Park Drive Post Office Box 9033 Temecula, Califomia 92589-9033 Attention: Shawn Nelson, City Manager III IR6\1 1627\957223-Mitchell -7- COPY TO: Richards, Watson & Gershon Attention: Peter M. 11lOrson, City Attomey 355 South Grand Avenue 40th Floor Los Angeles, Califomia 90071-3101 SELLER: Christopher and Tammy Mitchell 45024 Muirfield Drive Temecula, Califomia 92592-5871 ESCROW HOLDER: First American Title Company 3281 E. Guasti Road, Suite 490 Ontario, CA Attn: Gloria Ybarra, Escrow Officer TeL No. (909) 510-6221 Fax No. (909) 494-7513 17. Further Instructions. Each party agrees to execute such other and further escrow instmctions as may be necessary or proper in order to consummate the transaction contemplated by this Agreement. 18. Amendments. Any anlendments to this Agreement shall be effective only when duly executed by the City and Seller and deposited with Escrow Holder. 19. Miscellaneous. a. Applicable Law. This Agreement shall be constmed and interpreted under, and govemed and enforced according to the laws of the State of Califomia. b. Entire Agreement. 111is Agreement supersedes any prior agreement, oral or written, and together with the Exhibits hereto and any agreements delivered pursuant hereto, contains the entire agreement between the City and Seller on the subject matter hereof No subsequent agreement, representation or promise made by either party hereto, or by or to any employee, officer, agent or representative of either party, shall be of any effect unless it is in writing and executed by the party to be bound thereby. No person is authorized to make, and by execution hereof Seller and the City acknowledge that no person has made, any representation, warranty, guaranty or promise except as set forth herein; and no agreement, statement, representation or promise made by any such person who is not contained herein shall be valid or binding on Seller or the City. III IR6\1 1627\957223-Mitchell -8- c. Successors and Assigns. TIlis Agreement shall be binding upon and inure to the benefit of the heirs, executors, administrators, successors and assigns of the parties hereto. d. Time of Essence. The parties acknowledge that time is of the essence in this Agreement, notwithstanding anything to the contrary in the Escrow company's general Escrow instructions. e. Remedies Not Exclusive and TVaivers. No remedy conferred by any ofthe specific provisions ofthis Agreement is intended to be exclusive of any other remedy and each and every 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. TIle election of anyone or more remedies shall not constitute a waiver of the right to pursue other available remedies. f Intelpretation and Construction. TIle parties agree that each party has reviewed this Agreement and that each have had the opportunity to have their legal counsel review and revise this agreement and that any rule of construction to the effect that ambiguities are to be resolved against the drafting party shall not apply in the interpretation of this Agreement or any amendments or Exhibits thereto. In this Agreement the neuter gender includes the feminine and masculine, and singular number includes the plural, and the words "person" and "party" include corporation, partnership, finn, trust, or association wherever the conteJ\.i so requires. The recitals and captions of the sections and subsections ofthis Agreement are for convenience and reference only, and the words contained therein shall in no way be held to explain, modify, amplify or aid in the interpretation, construction or meaning ofthe provisions ofthis Agreement. 20. Attornevs' Fees. If either party hereto incurs attorneys' fees in order to enforce, defend or interpret any ofthe terms, provisions or conditions ofthis Agreement or because of a breach ofthis Agreement by the other party, the prevailing party shall be entitled to recover reasonable attorneys' fees from the other party. 21. Assh'llment. The City may assign its rights under this Agreement or may designate a nominee to acquire the Property, provided, however, that any such assignment or designation shall not relieve the City of any of its obligations under this Agreement. 22. Escrow Holder Need Not Be Concerned. Escrow Holder is not to be concerned with Sections 8, 9, 10, I L and 12 hereof, and the City and Seller release Escrow Holder from liability or obligation as to Sections 8, 9, 10, I Land 12 hereof IN WITNESS WHEREOF, the parties hereto have executed this Agreement as ofthe day and year first written above. III IR6\1 1627\957223-Mitchell -9- ATTEST: Susan W. Jones, MMC City Clerk III IR611 1627\957223-Mitchell SELLER Christopher Mitchell Tammy Mitchell CITY OF TEMECULA, a municipal corporation: Chuck Washington, Mayor -10- EXHIBIT "A" Being a portion of Lot 52 otTract No. 21067, in the City ofTemecula, County of Riverside, State of California, as filed in Book 231, Pages 41 through- 48, of Maps in the office.of the County Recorder of said County, being more particularly described as follows: BEGINNING at the most southerly comer of said Lot 52, said corner being distant 55.00 feet measured at a right angle to the centerline of Pechanga Parkway (formerly Pala Road); thence along the easterly line of said Lot 52, North 040 54' 45' East a distance of 30.18 feet; thence leaving said easterly line along a line being parallel and distant 79.00 feet from the centerline of said Pechanga Parkway, North 4r 44' 36' West a distance of 214.B3 feet to a point in the southeasterly right-of-way of Murfield Drive as shown on said map, said point being a point on a non-tangent curve, concave northwesterly and having a radius of 330.00 feet, a radial to said point bears South 6Q<> 17' 21' East; thence southwesterly along said curved right-of-way line, through a central angle of 3" 41' OS' and an arc length of 21.22 feet to the beginning of the comer cutback for the intersection of Murfield Drive and Pechanga Parkway; thence along said comer cutback, South 40" 28' 42' East a distance of 24.90 feet .' to a point in the northeasterly right-of-way of said Pechanga Parkway; . thence along said northeasterly right-of-way of Pechanga Parkway South 470 44' 36' East a distance of 204.49 feet to the POINT OF BEGINNING. Contains 5,280 square feet,more or less. See EXHIBIT "B', attached. v q q,1Io~ .EXHIBIT B SHEET 1 Of 1 .... f'I<) ~C'~. ~Q " ~I<) ..,~~ ~)- aa ~~ ~1? )- ~ ~Q " ~0~ i# g Q (;j r;;: !Sf ~ GJ "'......;-.. 8(j.l>)-.. '" S. ..? ,..",...... ~~6" ~ ...... "6'... ...... ,,,. ...... ...... /...... # ...... .d' .... 6""' . l~';1t&>"" <;j;r..... ~"....., , " v '].1r.9~"V4 tot 4f128'Ir ",C!> NOTE: LOT DIMENSIONS ARE SHOWN PER TR. NO. 21067. M.B. 231/41-48 ""'" ""'..... .......... N 73- N 6j:;..... 17~7" 09'i:i')y (.-?) LOT 52 TR. 21067 M.B. 231/41-48 I . .... Q) Ii ... i61'J .1() ~ .~ ...~ "!O ~ o :z: ? 1"",40' P,O.8. 1l1REE IItITERWORUl aAClE. SIL 200 IIilllliillllii"" H II & F In ltllECtJIA. CA 92590 _F. a oreman, C. PH. 951-194-9300 c_....,.,,_ 0..__' PIannI 1........._ .~._~. FAX. 951-294--9J01 ~...,_.,,'~Y'Y1~' l1Il,~"""",NU.~re WWW.HfINC.COII , EXHIBIT "An -I Being a portion of Lot 52 of Tract No. 21067, in the City of Temecula, County of Riverside, State of California, as filed in Book 231, Pages 41 through 48, of Maps in the office of the County Recorder of said County, being more particularly described as follows: COMMENCING at the most southerly corner of said Lot 52, said comer being distant 55.00 feet measured at a right angle to the centerline of Pechanga Parkway (formerly Pala Road); thence along the easterly line of said Lot 52, North 04054' 45" East a distance of 30_18 feet; thence leaving said easterly line along a line being parallel and distant 79.00 feet from the centerline of said Pechanga Parkway, North 470 44' 36" West a distance of 192.19 feet to the TRUE POINT OF BEGINNING; thence continuing along said line, North 470 44' 36" West a distance of 22_64 feet to a point in the southeasterly right-of-way ofMurfield Drive as shown on said map, said point being a point on a non-tangent curve, concave northwesterly and having a radius of 330.00 feet, a radial to said point bears South 60" 17' 21" East; thence northeasterly along said curved right-of-way line, through a central angle of 1015' 19" and an arc length of723 feet; thence leaving said right-of-way, South 31034'48" East a distance of 25_29 feet to the TRUE POINT OF BEGINNING_ . Contains 80 square feet, more or less. See EXHIBIT "B", attached. . EXHIBIT B-1 SHEET 1 OF 1 is I ~.<:> ~C'~A,. . ""Y.IfIQ , ~.<:> ~ :t~ ;.. tPQ ~4,~~ <;.. ~ ~ -i>O ' ~0~ 1# g Q t;f ii: 151 !y .......6,';J ~ 1\;': .t?t.<>", ~ 6()<1>~ "' ...{~ J\I ~ <i\-....... ..... ~~6'. ~ '-'~\- , I' NOTE: LOT DIMENSIONS ARE SHOWN PER TR. NO. 21067, M.B. 231/41-48 ~ ,~ ... 6\<' , ~ ~()..o- <;j ~.... qfJ'v . " '2.1..90~ " ~ 4(f2'iS 4'1. ",QI ---'" D ...... ...... IV "". "'S)4' IV....... ',-, 77' R~-l6'33'liF09-""" 57"W (,..<6 "'''" 1;}0;;;: '67.6'" ''-''J' II' (R) <: IV 3,. ~ <5~;18")v LOT 52 " TR. 2.1067 '4' U.8. 231/41-48 ~..>.. "'1r. '$ -?t "...,9 ~~... ~. . " ~ "" , " "~ z ~) \ . .... IX) ~ - l'1 It) '<t ;,. ~ o 1"=40' P.O.C. .. om ~.CIlQ..E. SIt. too BIJ!' . Hall & Foreman, Inc. ~-~= E "'^"""" ~......... ., _..._ fAX. e51-294-9J01 ng._"...~~..,.ng.l'\aOOinIl."".........~ JrtiW.HFINC.COII I~-- . , II ITEM NO.5 II , II - . . . I I II II __. . I Approvals City Attorney Director of Finance City Manager ~ /112 (J(L., CITY OF TEMECULA AGENDA REPORT TO: City ManagerlCity Council FROM: William G. Hughes, Director of Public Work DATE: September 25, 2007 SUBJECT: French Valley Parkway Interchange Project - Joint Resolution with the City of Murrieta PREPARED BY: Greg Butler, Deputy Director of Public Works - CIP RECOMMENDATION: That the City Council: 1. Adopt a resolution entitled: RESOLUTION NO. 07- A JOINT RESOLUTION OF THE CITY COUNCILS OF THE CITIES OF TEMECULA AND MURRIETA RECOGNIZING THE REGIONAL SIGNIFICANCE OF THE PLANNED FRENCH VALLEY PARKWAY I INTERSTATE-15 OVER-CROSSING AND INTERCHANGE IMPROVEMENTS PROJECT AND COMMITTING TO WORK TOGETHER TO EXPEDITIOUSLY DELIVER THE PROJECT. BACKGROUND: The French Valley Parkway/l-15 Over-Crossing and Interchange Improvements Project will provide a new connection to 1-15 between Winchester Road and the 1- 15/1-215 split. This project is intended to upgrade the existing freeway system and improve traffic flow and safety in southwest Riverside County. On January 14, 2003, Council entered into a an agreement with Moffat & Nichol Engineers (M&N) for the Project Report phase of the French Valley Parkway I nterchange Project, which includes Poject Approval & Environmental Document (PA & ED). Since that time Staff and M&N have been working with the City of Murrieta, the County of Riverside, Caltrans and the Federal Highway Administration (FHWA) to complete the multitude of reports, maps, technical studies, and exhibits necessary to gain approval of the Project Report and Environmental Document. Upon approval of those documents the Plans & Specifications for the construction of the project can be prepared/finalized. It is anticipated this project will be constructed in 2 phases. Phase I (southbound off-ramp to French Valley Parkway, auxiliary lane between French Valley and Winchester southbound off-ramp, and bridge widening over Santa Gertrudis Creek at the Winchester southbound off-ramp) is currently scheduled to begin construction July2009. Phase II, the remainder of the project, is anticipated to begin construction November 2010 and be complete by December 2012. Due to the complexity of this project, the Cities of Temecula and Murrieta are seeking a cooperativelcoordinated effort to expeditiously deliver this high priority project. The attached Resolution, which was adopted by the City of Murrieta at its regularly scheduled meeting on September 18, 2007, formalizes that commitment. FISCAL IMPACT: None. ATTACHMENTS: 1. City of Temecula - Resolution 2. City of Murrieta - Agenda Report 3. City of Murrieta - Resolution RESOLUTION NO. 07-00 A JOINT RESOLUTION OF THE CITY COUNCILS OF THE CITIES OF TEMECULA AND MURRIETA RECOGNIZING THE REGIONAL SIGNIFICANCE OF THE PLANNED FRENCH VALLEY PARKWAY I INTERSTATE-15 OVER- CROSSING AND INTERCHANGE IMPROVEMENTS PROJECT AND COMMITTING TO WORK TOGETHER TO EXPEDITIOUSLY DELIVER THE PROJECT. THE CITY COUNCILS OF THE CITIES OF TEMECULA AND MURRIETA DO HEREBY RESOLVE AS FOLLOWS: WHEREAS, Southwest Riverside County has experienced significant growth and is projected to continue to experience significant growth in the foreseeable future; and, WHEREAS, the aforementioned growth has increased the demand on the existing freeway system between Winchester Road and the Interstate 15/1nterstate 215 split; and, WHEREAS, the traffic flow on the existing freeway system is degrading to unacceptable levels; and, WHEREAS, the safety of the traveling public on the existing freeway system is also degrading to unacceptable levels; and, WHEREAS, the French Valley Parkway I Interstate-15 Over-Crossing and Interchange Improvements Project will upgrade the existing freeway system to improve traffic flow and safety; and, WHEREAS, the complexity of Federal and State oversight of the development of the French Valley Parkway I Interstate-15 Over-Crossing and Interchange Improvements Project is challenging; and, WHEREAS, United States Congressman Darrell Issa, State of California Assemblyman Kevin Jeffries, and Riverside County Supervisor Jeff Stone recognize the aforementioned complexity and challenges, and have fully involved themselves to support the expeditious completion of the French Valley Parkway Ilnterstate-15 Over- Crossing and Interchange Improvements Project; and, WHEREAS, we can protect and significantly improve the quality of life in Southwest Riverside County through the coordinated cooperative effort of the local governments; and, WHEREAS, we desire to demonstrate through a cooperative effort with our fellow local governments the ability to improve the safety of our citizenry and the traveling public. NOW, THEREFORE, BE IT RESOLVED that the Temecula City Council and the Murrieta City Council hereby declare that the French Valley Parkway I Interstate-15 Over-Crossing and Interchange Improvements Project is one of the most important transportation projects in Southwest Riverside County and with the continued support of United States Congressman Darrel Issa, California Assemblymen Kevin Jefferies, and Riverside County Supervisor Jeff Stone commit to work cooperatively to insure the timely delivery of this essential addition to the regional transportation network. PASSED, APPROVED, AND ADOPTED by the City Council of the City of Temecula this 25th day of September, 2007. Chuck Washington, 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. 07- was duly and regularly adopted by the City Council of the City of Temecula at a meeting thereof held on the 25th day of September, 2007, by the following vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: ABSTAIN: COUNCIL MEMBERS: Susan W. Jones, MMC City Clerk ,,"T'}'I~ ~ J..{urrida City Council Agenda Report Date: Subject: Mayor and City Council Patrick Thomas, Director of Public Works/City Engineer For Information Contact: Mr. Thomas at 951-461-6078 September 18, 2007 French Valley Parkway - Joint Resolution with City of Temecula To: From: RECOMMENDATION Adopt a Joint Resolution with the City of Temecula recognizing the significance of the French Valley Parkway/I-15 Over-Crossing and Interchange project and committing to work together to expeditiously deliver the project. BACKGROUND The French Valley Parkway/I-15 Over-Crossing and Interchange Improvements Project will provide a new connection to 1-15 between Winchester Road and the 1-15/1-215 split. This project is intended to upgrade the existing freeway system and improve traffic flow and safety between the cities of Murrieta and Temecula. The City of Temecula is acting as the lead agency and directing the preparation of plans, specifications and environmental studies for this project, as well as coordinating with the City of Murrieta, County of Riverside, Caltrans and Federal Highway Administration (FHWA). Due to the complexity of this project, the City of Temecula has requested a coordinated effort in order to expeditiously deliver this high priority project. The City of Temecula is currently preparing a New Connection Report and Traffic Operations Report for review by Caltrans and FHWA. Upon approval of this report, the City will begin formal review of the Environmental Document and Preparation of plans and specifications. It is anticipated this project will be constructed in 2 phases. Phase I (southbound off-ramp to French Valley Parkway, auxiliary lane between French Valley and Winchester southbound off-ramp, and bridge widening over Santa Gertrudis Creek at the Winchester southbound off-ramp) is anticipated to begin July 2009. Phase II, the remainder of the project, is anticipated to begin in November 201 0 and be complete by December 2012. FISCAL IMPACT None ATTACHMENT 1. Resolution APPROVALS: City Attorney Finance Dir. City Manager RESOLUTION NO. A JOINT RESOLUTION OF THE CITY COUNCILS OF THE CITIES OF TEMECULA AND MURRIETA RECOGNIZING THE REGIONAL SIGNIFICANCE OF THE PLANNED FRENCH VALLEY PARKWAY I INTERSTATE-15 OVER-CROSSING AND INTERCHANGE IMPROVEMENTS PROJECT AND COMMITTING TO WORK TOGETHER TO EXPEDITIOUSLY DELIVER THE PROJECT. THE CITY COUNCILS OF THE CITIES OF TEMECULA AND MURRIETA DO HEREBY RESOLVE AS FOLLOWS: WHEREAS, Southwest Riverside County has experienced significant growth and is projected to continue to experience significant growth in the foreseeable future; and WHEREAS, the aforementioned growth has increased the demand on the existing freeway system between Winchester Road and the Interstate 15/lnterstate 215 split; and WHEREAS, the traffic flow on the existing freeway system is degrading to unacceptable levels; and WHEREAS, the safety of the traveling public on the existing freeway system is also degrading to unacceptable levels; and WHEREAS, the French Valley Parkway / Interstate-15 Over-Crossing and Interchange Improvements Project will upgrade the existing freeway system to improve traffic flow and safety; and WHEREAS, the complexity of Federal and State oversight of the development of the French Valley Parkway / Interstate-15 Over-Crossing and Interchange Improvements Project is challenging; and WHEREAS, United States Congressman Darrell Issa, State of California Assemblyman Kevin Jeffries, and Riverside County Supervisor Jeff Stone recognize the aforementioned complexity and challenges, and have fully involved themselves to support the expeditious completion of the French Valley Parkway / Interstate-15 Over- Crossing and Interchange Improvements Project; and WHEREAS, the Cities of Murrieta and Temecula can protect and significantly improve the quality of life in Southwest Riverside County through the coordinated cooperative effort of the local governments; and, WHEREAS, the Cities of Murrieta and Temecula desire to demonstrate through a cooperative effort with our fellow local governments the ability to improve the safety of our citizenry and the traveling public. NOW, THEREFORE, BE IT RESOLVED that the Temecula City Council and the Murrieta City Council hereby declare that the French Valley Parkway / Interstate-15 Over-Crossing and Interchange Improvements Project is one of the most important transportation projects in Southwest Riverside County and with the continued support of United States Congressman Darrel Issa, California Assemblymen Kevin Jefferies, and Riverside County Supervisor Jeff Stone commit to work cooperatively to insure the timely delivery of this essential addition to the regional transportation network. PASSED, APPROVED AND EFFECTIVE on the day of , 2007. Attest: Douglas R. McAllister, MAYOR Kay Vinson, CITY CLERK City of Murrieta Approved as to Form: Leslie E. Devaney, CITY ATTORNEY City of Murrieta I, A. Kay Vinson, City Clerk of the City of Murrieta, California, DO HEREBY CERTIFY that the Resolution was duly and regularly adopted by the City Council of the City of Murrieta, California, at a meeting thereof held on the day of 2007 by the following vote: AYES: NOES: ABSENT: ABSTAIN: IN WITNESS WHEREOF, I have hereunto set my hand and official seal of the City of Murrieta, California, this day of 2007. Kay Vinson City Clerk of the City of Murrieta I~-- . , II ITEM NO.6 II , II - . . . I I II II __. . I Approvals City Attorney Director of Finance City Manager ~ 11/2 00...- CITY OF TEMECULA AGENDA REPORT TO: City ManagerlCity Council FROM: John Meyer, Redevelopment Director DATE: September 25, 2007 SUBJECT: License Agreement for the TEAM Community Pantry RECOMMENDATION: That the City Council: 1. Approve a First Amendment to the License Agreement between the City of Temecula and the Global Community Foundation to terminate the Agreement 2. Approve the License Agreement between the City of Temecula and the TEAM Community Pantry to maintain a modular office building and storage containers at the Temecula Community Center in a monthly amount of $1,100 ($13,200 annually). BACKGROUND: On September 12, 2006, the City of Temecula entered into a License Agreement with the Foundation to establish an interim facility which enabled the Team Community Pantry (Pantry) to continue to serve the community. This was an interim solution while the Foundation and the City worked together to establish a permanent facility. The Foundation will no longer be able to assist in this effort. Therefore, it is necessary to terminate the existing Agreement with the Foundation and replace it with an Agreement with the Pantry. The Agreement with the Pantry will allow for the modular unit to remain at the Temecula Community Center location for 18 months. This will allow the Pantry to continue to provide services to the local community. The City will continue to work on the relocation and rehabilitation of the Escallier House and Barn. The City Council has approved a master site plan for the buildings and City staff is working on the plans for the buildings' rehabilitation. It is anticipated that the buildings will be relocated and the rehabilitation work will begin in early 2008. FISCAL IMPACT: The term of the license agreement includes a $1,100 per month rental payment from the Pantry to the City of Temecula. This payment will cover the City's cost of the modular building's lease. The Pantry will pay for all utilities. ATTACHMENTS: First Amendment License Agreement FIRST AMENDMENT TO LICENSE AGREEMENT BETWEEN THE CITY OF TEMECULA AND GLOBAL COMMUNITY FOUNDATION FOR USE OF CITY PROPERTY THIS FIRST AMENDMENT is made and entered into as of September 11, 2007 by and between the City of Temecula, a municipal corporation ("City") and Global Community Foundation, a California non-profit corporation ("Licensee"). In consideration ofthe mutual agreements contained herein, the parties agree as follows: 1. Recitals. This First Amendment is made with respect to the following facts and for the following purposes, which each of the parties hereto acknowledge as true and correct: A On September 12, 2006, the City and Licensee entered into that certain "License Agreement Between the City of Temecula and Global Community Foundation for Use of City Property" ("License Agreement"). B. Licensee has lost its funding for the development of the project contemplated for the Subject Property and is unable to fulfill the ternlS of the License Agreement. C. TIle parties therefore desire to ternlinate the License Agreement. 2. Termination of License Agreement. The parties hereby terminate the License Agreement as of August 31, 2007 provided that the ternlS of Paragraph 5, Liens, and Paragraph 7, hldemnification, shall survive ternlination of the License Agreement for any such actions of the Licensee that occurred or should have occurred on or before August 31, 2007. 3. Modular Building. As part ofthe License Agreement, Licensee entered into a lease for the modular building on the Subject Property. Licensee agrees to take whatever actions are necessary to transfer this lease to the City. The City Council approves the transfer of the lease from the Licensee to the City and authorizes and directs the City Manager to enter into such agreements as are necessary to effectuate this transfer. 4. Internretation. Each party had the full opportunity to participate in the drafting of this First Amendment and, therefore, this First Amendment shall not be interpreted against any party on the ground that the party who drafted the First Amendment or caused it to be prepared. 5. Authoritv to Enter Into First Amendment. Each person signing below personally warrants and represents to the City that the Licensee has approved this First Amendment, intends to be bound by its ternlS and that they are duly authorized to execute this First Amendment on behalf ofthe Licensee. 6. Entire Agreement. TIlis First Amendment and any documents attached hereto or mentioned herein, contain all ofthe agreements ofthe parties regarding terms set forth in this C' \ WINDOWSlapsdoc\nettemp\25121$ASQpdf85 84 77 .DC(JC First Amendment, and no prior agreement or understanding pertaining to any such matter shall be effective for any purpose. IN WITNESS WHEREOF, the parties hereto have executed this Agreement as ofthe date first above written. GLOBAL COMMUNITY FOUNDATION, a California Non-Profit Corporation By: Name: Title: By: Name: Title: C' \ WINDOWSlapsdoc\nettemp\25121$ASQpdf85 84 77DQlC CITY OF TEMEClTLA Chuck Washington Mayor ATTEST: Susan Jones, MMC City Clerk APPROVED AS TO FORM: Peter M. 11lOrson City Attomey C' \ WINDOWSlapsdoc\nettemp\25121$ASQpdf85 84 77D@lC LICENSE AGREEMENT BETWEEN THE CITY OF TEMECULA AND TEAM COMMUNITY PANTRY FOR USE OF CITY REAL PROPERTY THIS LICENSE AGREEMENT is entered into by and between the City of Temecula, a municipal corporation ("City") and TEAM Community Pantry, a Califomia non-profit corporation ("Licensee") and is made as of September 25, 2007. In consideration ofthe mutual agreements contained herein, the parties hereto agree as follows: I. Recitals. This Agreement is made with respect to the following facts and for the following purposes, which each ofthe parties hereto acknowledge as true and correct: A The City is the owner of certain real property in the City of T emecula generally known as the Temecula Community Center located at 28870 Pujol Street, Temecula, Califomia, and identified as Assessor's Parcel Number 922-100-026 (hereafter "Community Center Site"). B. The Licensee is a non-profit corporation that provides community services for the Temecula area in the foml ofthe distribution offood, clothing and social services for all members ofthe T emecula community who may be in need. C. TIle City is willing to grant this License to Licensee in consideration of and recognition ofthe community services provided to the community by the Licensee. D. TIle City and Licensee desire to enter into this Agreement to provide the temlS and conditions upon which Licensee shall use the portion ofthe Community Center Site described below. 2. Ri"ht to Use Portion of Communi tv Center Site: Rent. A City hereby grants a license to Licensee to use the modular building that portion of the Community Center Site described on Exhibit "A," attached hereto and incorporated herein (hereafter referred to as "Subject Property") and located on the Subject Property at the location shown on Exhibit "B," attached hereto and incorporated herein, subject to the terms and conditions ofthis Agreement. B. City shall install a temporary modular building that is approximately 1,400 square feet at the location shown on Exhibit "B". Said temporary modular building shall not exceed a width oftwenty-four feet (24'), a length of six1:y-four feet (64') and a height of fourteen feet (14'). C. Licensee shall pay rent to the City in the amount of one thousand dollars ($1,100.00) per month payable in advance on the first business day of each month. c:\ WINDOWS\ap~Joc\nettemp\66()I$ASQpJf8583()6.DOC 1 3. Tenn of License to Use Communitv Center Site. A Duration. The T enn ofthis Agreement shall be two years, commencing on September 1, 2007 and ending on August 31, 2008, subject to the eJ\.iension of the tenn as provided in Subsection 3.c. B. Right to Tenninate Agreement. Either party may tenninate this Agreement for any reason by providing a siJ\.iy (60) day written notice oftennination to the other party at the addresses shown in Section 12, below. C. Notice of Desire to EJ\.iend Tenn. On or before June 1, 2008, Licensee shall give written notice to the City at the address shown in Section 12, below of Licensee's desire to further eJ\.iend the Term of this Agreement for one (1) additional year through August 31, 2009. The Term shall be eJ\.iended for one (1) additional year through August 31,2009 only if such eJ\.iension is approved by the City Manager in writing. Nothing in this section shall be constmed as an obligation of City to eJ\.iend the Tenn, nor shall it be constmed as granting Licensee any option to eJ\.iend the Tenn, regardless of whether or not Licensee provides the notice described herein. 4. Resnonsibilities of the Parties. Licensee may place roll-off storage container(s), not to exceed 400 square feet total, adjacent to the temporary modular building at its sole cost and expense. Between November 1 ~t and January 7th the Licensee will be allowed to locate a refrigerated trailer for purposes of storing perishable goods. Licensee shall obtain all applicable pennits and approvals from the City of Temecula for this storage container. Licensee shall maintain the temporary modular building, storage container, trailer, and surrounding area in a neat and clean condition. 5. Liens. Licensee shall not directly or indirectly create or pennit to be created or to remain any mortgage, lien, encumbrance, charge or pledge ofthe Subject Property. Licensee shall defend, indemnify and hold City harmless, pursuant to Section 7, below, from any liens that may attach to the Community Center Site or to the Subject Property arising from the use of the temporary modular building for the operation of the TEAM Community Pantry. 6. Return ofthe Pronertv. Upon termination ofthis Agreement, Licensee shall remove the temporary modular building from the Subject Property at its sole cost and return the Subject Property in as good a condition and repair as the Subject Property existed as of the date ofthis Agreement. 7. Indemnification. Licensee shall defend, indemnify, assume all responsibility for and hold the City, Temecula Community Services District and Redevelopment Agency its officers, officials, agents, employees and volunteers ("Indemnified Parties"), harnlless from all costs (including attorneys fees and costs), claims, demands, mechanics liens, liabilities or judgments for injury or damage to property and injuries to persons, including death that may be caused by any ofthe actions or inactions ofthe Licensee or users ofthe Subject Property or that may result from the Licensee's use of the Subject Property, whether such actions or inactions or use by Licensee or any person directly or indirectly employed or contracted with by Licensee and c:\ WINDOWS\ap~Joc\nettemp\66()I$ASQpJf8583()6.DOC 2 whether such action shall accme or be discovered before or after tennination ofthis Agreement. TIlis section shall survive tennination ofthis License Agreement. 8. Insurance Reouirements. Licensee shall procure and maintain for the duration ofthe contract insurance against claims for injuries to persons or damages to property that may arise from or in connection with the performance of the work hereunder by the Licensee, its agents, representatives or employees. A Minimum Scone of Insurance. Coverage shall be at least as broad as the following coverages and any updated industry standard policies: I) Insurance Services Office Commercial General Liability coverage (occurrence form No. CG 00 0111 85 or 88). 2) Worker's Compensation insurance as required by the State of California and Employer's Liability Insurance. B. Minimum Limits ofInsurance. Licensee shall maintain limits no less than: I) General Liability: $1,000,000 per occurrence for bodily injury, personal injury, and property damage for Licensee or its tenant (or assigns). If Commercial General Liability Insurance or other form with a general aggregate limit is issued, either the general aggregate limit shall apply separately to the Subject Property or the general aggregate limit shall be twice the required occurrence limit. 2) Worker's Compensation as required by the State of California. C. Deductibles and Self- Insured Retentions. Any deductibles or self-insured retentions must be declared to and approved by the Director of Finance. At the option ofthe Director of Finance, either the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects the City, its officers, officials, agents, employees or volunteers, or the Licensee shall procure a bond guarantee payment oflosses and related investigations, claim administration and defense expenses. D. Other Insurance Provisions. TIle general liability and automobile liability policies are to contain, or be endorsed to contain, the following provisions: I) TIle Indemnified Parties (as defined in Section 7) shall be covered as insured's as respects: liability arising out of activities performed by or on behalf ofthe Licensee; products and completed operations of the Licensee; premises owned, occupied or used by the Licensee; or automobiles owned, leased, hired or borrowed by the Licensee. The coverage shall contain no special limitations on the scope of protection afforded to the Indemnified Parties. 2) For any claims related to the Licensee's use ofthe Subject Property, the Licensee's insurance coverage shall be primary insurance as respects the Indemnified Parties. Any insurance or self-insured maintained by the Indemnified Parties shall be in excess ofthe Licensee's insurance and shall not contribute with Licensee's insurance. c:\ WINDOWS\ap~Joc\nettemp\66()I$ASQpJf8583()6.DOC 3 3) Any failure to comply with reporting or other provisions ofthe policies including breaches of warranties shall not affect coverage provided to the Indemnified Parties. 4) TIle Licensee's insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits ofthe insurer's liability. 5) Each insurance policy required by this agreement shall be endorsed to state: should the policy be cancelled before the expiration date the issuing insurer will endeavor to mail thirty (30) days' prior written notice to the City. 6) If insurance coverage is cancelled or, reduced in coverage or in limits the Consultant shall within two (2) business days of notice from insurer phone, fax, and/or notify the City via certified mail, return receipt requested ofthe changes to or cancellation ofthe policy. 7) Accentabilitv of Insurers. Insurance is to be placed with insurers with a current AM. 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. 8) Verification of Coverage. Licensee 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 bond coverage on its behalf TIle endorsements are to be on fornls provided by the City. All endorsements are to be received and approved by the City before Licensee begins to use the Subject Property. As an alternative to the City's fornls, the Licensee's insurer may provide complete, certified copies of all required insurance policies, including endorsements effecting the coverage required by these specifications. 9. Assignment and Subletting. Licensee shall not assign its interest in this Agreement or in the Subject Property to any person or entity without first obtaining the City Manager's written consent. Any assignment without the City Manager's prior written consent shall be voidable and, at the City Manager's election, shall constitute a default. 10. Use Restrictions. Licensee agrees to maintain the Subject Property in a clean and neat condition, free and clear of garbage, weeds, and debris. No dumping, storage of hazardous or toxic waste, nor the maintenance of any nuisance, public or private, shall be pernlitted. License shall be responsible for all maintenance ofthe Subject Property, except for such maintenance as may be undertaken by the City in its discretion. II. Utilities. Licensee shall pay for all utility costs incurred on the Subject Property for the periods when Licensee is using the Subject Property. 12. 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 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 written notice to the other party: c:\ WINDOWS\ap~Joc\nettemp\66()I$ASQpJf8583()6.DOC 4 City: CITY OF TEMECLTLA 43200 Business Park Drive Temecula, California 92590 Attention: City Manager Licensee: TEAM Community Pantry 28870 Pujol Street Temecula, CA 92589 13. Legal ResDonsibilities: Non-Discrimination. The Licensee shall keep itself informed of alllocaJ. State and Federal ordinances, laws and regulations which in any manner affect those employed by it or in any way affect the perfornlance of its services described in this Agreement. As required by law, the Licensee hereby covenants that there shall be no discrimination against or segregation of any person or group of persons, on account of any basis listed in subdivision (a) or (d) of Section 12955 ofthe California Government Code, as those bases are defined in Sections 12926, 12926.1, subdivision (m) and paragraph (I) of subdivision (p) of Section 12955, and Section 12955.2 ofthe California Government Code, in the use, occupancy, tenure or enjoyment of the Subject Property or operations ofthe activities thereon, nor shall the Licensee establish or pernlit any such practice or practices of discrimination or segregation. TIle Licensee shall at all times observe and comply with all such ordinances, laws and regulations. TIle City, and its officers and employees, shall not be liable at law or in equity occasioned by failure ofthe Licensee to comply with this section. 14. Taxes. Licensee shall pay any possessory interest taxes, and general and special assessments, if any, which may levied against the modular building described at Section 2 above as a result of Licensee's use ofthe Subject Property. 15. Internretation. Each party had the full opportunity to participate in the drafting of this Agreement and, therefore, the Agreement shall not be interpreted against any party on the ground that the party drafted the Agreement or caused it to be prepared. 16. Authoritv to Enter Into AQ:feement. Each person signing below personally warrants and represents to the City that the Licensee has approved this License, intends to be bound by its ternlS and that they are duly authorized to execute this License Agreement on behalf ofthe Licensee. 17. Entire AQ:feement. TIlis Agreement and any documents attached hereto or mentioned herein, contain all ofthe Agreements of the parties regarding the Subject Property, and no prior agreement or understanding pertaining to any such matter shall be effective for any purpose. 18. Amendments. No provision ofthis Agreement may be anlended except by the written agreement of both parties. c:\ WINDOWS\ap~Joc\nettemp\66()I$ASQpJf8583()6.DOC 5 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as ofthe date first above written. TEAM Community Pantry, a California Non-Profit Corporation By: Name: Title: By: Name: Title: CITY OF TEMEClTLA Chuck Washington Mayor ATTEST: Susan Jones, MMC City Clerk APPROVED AS TO FORM: Peter M. Thorson City Attorney c:\ WINDOWS\ap~Joc\nettemp\66()I$ASQpJf8583()6.DOC 6 EXHIBIT "A" DESCRIPTION OF SUBJECT PROPERTY The portion of the Temecula Community Center Site that is the subject ofthis License and referenced in Paragraph 2 ofthis Agreement consists of an approximate 1,400 square foot area of the southern portion of the real property owned by the City of Temecula located at 28816 Pujol Street, Temecula, California, 92590 and identified as Assessors Parcel Number 922-100- 026. TIle Subject Property is depicted on Exhibit "B" hereto. A-I EXHIBIT B DEPICTION OF SUBJECT PROPERTY AND LOCATION OF MODULAR BUILDING B-1 I~-- . , II ITEM NO.7 II , II - . . . I I II II __. . I Approvals City Attorney Director of Finance City Manager ~ 11/2 (JQ..., CITY OF TEMECULA AGENDA REPORT TO: City ManagerlCity Council FROM: William G. Hughes, Director of Public Works DATE: September 25, 2007 SUBJECT: First Amendment to the Non-Exclusive Purchase Agreement for the Traffic Signal Installation for the Traffic Signal @ Rancho California Road and Business Park Drive, West; Project No. PW07-02 PREPARED BY: Greg Butler, Deputy Director of Public Works - CIP Scott Harvey, Associate Engineer RECOMMENDATION: That the City Council approve the First Amendment with McCain Traffic Supply, Inc. to provide a Traffic Signal Controller, Cabinet and Battery Back-Up System for the Traffic Signal Installation at Rancho California Road and Business Park Drive West, Project No. PW07-02, for an amount not to exceed $12,053.99 and authorize the Mayor to execute the amendment. BACKGROUND: This project will be installing an eight phase traffic signal at the intersection of Rancho California Road & Business Park Drive, West. There will also be a flashing beacon installed west of the intersection to alert motorists of the traffic signal when traveling east on Rancho California Road from the De Luz area. On August 14, 2007, City Council authorized the solicitation of construction bids forthe construction of the Traffic Signal at Rancho California Road and Business Park Drive West. Staff will be advertising for construction bids shortly, with the stipulation that the City supply the Contractor with specific traffic control equipment. On August 30,2007, a Non-Exclusive Purchase Agreement was executed with McCain Traffic Supply, Inc. to procure traffic signal poles and equipment in the amount of $28,262.83 for this project. Staff is recommending that this agreement be amended to include the procurement of the Traffic Signal Controller, Cabinet and Battery Back-Up System due to their long lead times. By ordering this equipment now, we are able to cut the overall schedule for the installation of this traffic signal project. FISCAL IMPACT: The Traffic Signal Installation at Rancho California Road and Business Park Drive West, Project PW07-02, is a Capital Improvement Project funded through Development Impact FeeslTraffic Signals. Adequate funds are available in Account No. 210-165- 673-5804 to cover the purchase agreement in the amount of $28,262.83 plus the first amendment amount of $12,053.99 for a total purchase amount of $40,316.82. ATTACHMENTS: 1. Signal Location Map 2. Project Description 3. First Amendment ~ ~ (j) ~ 0 ~ "'- ~ ~ 4. - ~ 0 u. :i 4. 0 0 ~ / 0 ~ ~ \ Z ~ 0 - '4. ~ t; ~t; -;iU1 Z~ C)uI (j)2. o~ "" _0 'q,,;; u.lG ~~ "<1;", ~4. ~ 1-0- ~ ~ C >4 .. i.-< ? ~. .~~ .~ U \:-' ;:; ~ a C '" .~ ~ 0 ... l>< ;~ .~. f.'I;;. .'~. :~. .~., .~ ~ b ~ ~ .... ] dZ !l '" ~ ~ 1:1 o '" t g. 1 .~ '" u S g oJ) ~ ::l '0 .S >. ... 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I.{) o"'Oltl" <= o:::t 0 ("I')t'-- 0= \0 \0 M EA- EfT GA GA ~~ 01 01 .~ ~ -<i:S <:i o .~ 8 j:j 'jj rn U -s ;:l ~ ~ .~~ p '" ... o " 0 -<i: u 0 E-< '1 00 00 00 tt)" vi t--<-- "1.'" '" ",. '" '" '" 01 6h i:I3 " ~ E-< ... t- II , .Q ~ - " ~ ~ g g <l: S' - .. ... i?f o ~..... og"d O. [ s '" 0 ~ N..,..;...( ~ 01 :>1) :P <flOE-< i 0." 0.'" 1 .)?J= ~'r.. o~ f ~ ~ g ro.rn FIRST AMENDMENT TO AGREEMENT BETWEEN CITY OF TEMECULA AND MC CAIN TRAFFIC SUPPLY, INC. TRAFFIC SIGNAL INSTALLATION RANCHO CALIFORNIA ROAD AT BUSINESS PARK DRIVE, WEST PROJECT NO. PW07-02 THIS FIRST AMENDMENT is made and entered into as of September 25, 2007 by and between the City of Temecula, a municipal corporation ("City") and McCain Traffic Supply, Inc., ("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 August 30, 2007 the City and Vendor entered into that certain agreement entitled "City of Temecula Agreement for the purchase of traffic signal poles ("Agreement") in the amount of Twenty Eight Thousand Two Hundred Sixty Two Dollars and Eighty Three Cents ($28,262.83). B. The parties now desire to increase the payment amount for the additional purchase of a traffic signal control box, cabinet and battery back-up system in the amount of Twelve Thousand Fifty Three Dollars and Ninety Nine Cents ($12,053.99) and amend the Agreement as set forth in this Amendment. 2. follows: l:?ection 2. Purchase Price of the Agreement is hereby amended to read as a. The Purchase Price, which City agrees to pay to Vendor for the Merchandise, will be as quoted in Exhibit A, Description of Merchandise, with an annual not to exceed amount of Twenty Eight Thousand Two Hundred Sixty Two Dollars and Eighty Three Cents ($28,262.83) for the total term of the agreement. Vendor will submit invoices monthly for actual merchandise ordered and received. Invoices shall be submitted between the first and fifteenth day of each month for merchandise delivered and received. Payment shall be made within thirty (30) days of receipt of the invoice as to all non-disputed fees. If the City disputes any of the Vendor's fees, it shall give written notice to the Vendor within thirty (30) days of receipt of the invoice of the disputed fees on the invoice. The not to exceed purchase amount listed herein is an estimated expenditure and this agreement does not guarantee Vendor this amount in purchases. The First Amendment amount shall not exceed Twelve Thousand Fifty Three Dollars and Ninety Nine Cents ($12,053.99) for the purchase of a traffic signal controller, cabinet and battery back-up system for a total agreement amount, of Forty Thousand Three Hundred Sixteen Dollars and Eighty Two Cents ($40,316.82). 3. Exhibit B to the Agreement is hereby amended by adding thereto the items set forth on Attachment "A" to this Amendment, which is attached hereto and incorporated herein as though set forth in full. 4. Except for the changes specifically set forth herein, all other terms and conditions of the Agreement shall remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed the day and year first above written. CITY OF TEMECULA Chuck Washington, Mayor ATTEST: Susan W. Jones, MMC, City Clerk Approved As to Form: Peter M. Thorson, City Attorney VENDOR McCain Traffic Supply, Inc. 2365 Oak Ridge Way Vista, CA 92081-8495 (760) 734-5057 FAX: (760) 727-8184 Bill Brown, Vice President Terri Schaefer, Controller (Two Signatures Required For Corporations) ATTACHMENT A MC CAIN TRAFFIC SUPPLY, INC. TRAFFIC SIGNAL INSTALLATION RANCHO CALIFORNIA ROAD AT BUSINESS PARK DRIVE, WEST PROJECT NO. PW07-02 Attached hereto and incorporated herein is the additional scope of work for the traffic signal controller, cabinet and battery back-up system and associated cost as provided by the Vendor. . """'1IIl ,.. .. ,','_.,'..,','..../.-.....-..,,",.,..,.-.-.-.-.-.-.-. ~"?i:'.,,. c"a, n Attn: Scott Harvey Via E-Mail Performance Driven QUOTATION Quote #: Agency: Job Name: Bid Date: Estimator: Leanne Arnold KX081307LA1 PH. (760)734-5057 TEMECULA FX. (760)727-8184 RANCHO CAL RD @ BUSINESS PARK/RIDGE PARK DR 08.13.07 Bid Item Qnty Description 332 Anodized Cabinet Equipped as follows: Corbin Locks, Drawer/Shelf Fluorescent Lamp Kit, 1 Light, 2 Switch HOE ControllerW/412C Prom Module & BiTran 233 Program 210 EDI Conflict Monitor Price Extension $8,302.00 $8,302.00 400 Modem W/C-2 Cable (12) 200 Loadswitch (12) EDI 222 Detector Cabinet Print & Certificate of Compliance (4) 3/4" X 18" X 4" Anchor Boits (Includes Technical Support) 1 Dimension BBS inverter (DUI-24Y11) $2,885.00 BBS Combo Bypass Switch (DUI 622142-001 Open Back) (4) BBS Battery 12VDC, 79AH 27 X 24 X 8 Battery Cabinet, Anodized Lead Time 45-60 Days ARO FOB Destination, Freight Allowed $2,885.00 7.75% Sales Tax Reference Total $866.99 $12,053.99 Prices firm for 30 days. Freight included. Add sales tax. Sale is subject to McCain's standard terms and conditions. The information transmitted is intended only for the person or entity to which it is addressed and may contain confidential and/or legally privileged material. Any review, retransmission, dissemination or other use of, or taking of any action in reliance upon, this information by persons or entities other than the intended recipient is prohibited. , I~-- . , II ITEM NO.8 II , II - . . . I I II II __. . I Approvals City Attorney Director of Finance City Manager ~ l1il ~ CITY OF TEMECULA AGENDA REPORT TO: City ManagerlCity Council FROM: Herman Parker, Director of Community Services DATE: September 25, 2007 SUBJECT: Amendment NO.1 to Verizon Cable Franchise PREPARED BY: Phyllis L. Ruse, Deputy Director of Community Services RECOMMENDATION: That the City Council: 1. Adopt a resolution entitled: RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULAAPPROVING AND AUTHORIZING THE EXECUTION OF AMENDMENT NO. 1 TO THE NONEXCLUSIVE CABLE FRANCHISE AGREEMENT BETWEEN THE CITY AND VERIZON CALIFORNIA INC. BACKGROUND: On June 27, 2006, the City Council approved a cable franchise with Verizon California, Inc. ("Verizon") to provide cable television services within the City of Temecula. Verizon is the primary provider of residential telephone service within the City. At the time Verizon sought a cable franchise from the City, it was in the process of upgrading its existing telecommunications facilities in the City by installing a state-of-the-art Fiber-to-the-Premises Telecommunications Network ("FTTP Network"). The FTTP Network will utilize fiber-optic cables and associated optical electronics instead of copper wire to connect customers to the Verizon network. The FTTP Network uses laser-generated pulses of light to transmit voice, data and video signals via the fiber at speeds and capacities far exceeding today's copper-cable systems. Verizon provides telecommunications services within the City through four wire centers: 1. Temecula wire center 2. Murrieta wire center 3. Redhawk wire center 4. Rancho California wire center The Rancho California wire center is the largest of the four centers and provides service to the most residential units. Exhibit A of the Franchise designates the territories serviced by the Temecula, Murrieta, and Redhawk wire centers as the "Initial Service Area" and the Rancho California wire center as servicing the "Extended Service Area". Per the Franchise, Verizon is required to begin offering cable television services to residential areas within the Initial Service Area with 18 months of the Effective Date (July 11 , 2006) and to residential areas within the Extended Service Area within 24 months of the effective date. Actual deployment of the FTTP Network has or is occurring in the Redhawk, Murrieta and Rancho California wire center areas and will be completed and operational within the 18 month timeframe. The Temecula wire center will be completed and operational within 27 months of the effective date of the Franchise. Verizon is requesting an amendment to the Franchise, making the Rancho California wire center part of the Initial Service Area and making the Temecula wire center part of the Extended Service Area. Verizon is also asking that the timeframe for the completion of the Extended Service Area be increased from 24 to 27 months for deployment of services in the Extended Service Area. Verizon estimates there are 8,518 residences serviced by the Rancho California wire center and 323 residences serviced by the Temecula wire center. The Amendment also provides revisions to the Annual EG Grant and Future City Facilities sections of the Franchise. The proposed Amendment modifies the calculation for the EG Grant to be consistent with the new state law. It also ensures that Verizon will provide free of charge the cable infrastructure and ongoing cable service to the future City facilities listed in Exhibit B. Approval of this item will allow the orderly deployment of the FTTP Network and cable services provided by Verizon to the citizens of Temecula. Almost 8,200 more residents will have earlier access to Verizon FTTP Network services and products than would under the existing Franchise. All City residents will have access to those services and products no later than 27 months after the Effective Date of the Franchise. FISCAL IMPACT: There is no fiscal impact associated with the granting of the Franchise amendment. However, the City will receive five percent (5%) ofVerizon's gross revenues for cable services as such services are provided in the City. Cable franchise fees from both Franchisees, Time Warner and Verizon, are budgeted at $604,000 for fiscal year 07/08. ATTACHMENTS: Resolution Amendment NO.1 to Franchise Agreement RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA APPROVING AND AUTHORIZING THE EXECUTION OF AMENDMENT NO. 1 TO THE NONEXCLUSIVE CABLE FRANCHISE AGREEMENT BETWEEN THE CITY AND VERIZON CALIFORNIA, INC. THE CITY COUNCIL OF THE CITY OF TEMECULA DOES HEREBY RESOLVE AS FOLLOWS: Section 1. This resolution is adopted in consideration of the following facts and circumstances: A. The City and Verizon California, Inc. ("Franchisee") are parties to that certain Cable Franchise Agreement dated July 11, 2006 ("Franchise Agreement") that authorizes Franchisee the right to own, construct, operate, and maintain a Cable System in the franchise area designated in the Franchise Agreement. B. City and Franchisee desire to amend the Franchise Agreement to modify the respective rights and obligations of the parties, as specified in Amendment NO.1 that is attached to this Resolution. Section 2: That certain Amendment NO.1 to Cable Franchise Agreement in the form presented to the City Council at this meeting is approved, and the Mayor is authorized and directed to execute that document on behalf of the City following its execution by the Franchisee. Section 3: The City Clerk is directed to transmit a certified copy of this resolution to: Mr. Tim McCallion, President, Pacific Region, Verizon California, Inc., 112 Lakeview Canyon Road, Thousand Oaks, California 91362. Section.4: The City Clerk is directed to certify to the passage and adoption of this resolution. PASSED, APPROVED, AND ADOPTED by the City Council of the City of Temecula this day of , 2007. Chuck Washington, Mayor ATTEST: Susan W. Jones, MMC City Clerk [SEAL] STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss CITY OF TEMECULA ) I, Susan W. Jones, MMC, City Clerk of the City of Temecula, do hereby certify that the foregoing Resolution No. was duly and regularly adopted by the City Council of the City of Temecula at a meeting thereof held on the day of , 2007, by the following vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: ABSTAIN: COUNCIL MEMBERS: Susan W. Jones, MMC City Clerk AMENDMENT NO.1 TO CABLE FRANCHISE AGREEMENT This AMENDMENT NO.1 TO CABLE FRANCHISE AGREEMENT ("Amendment") is entered into this day of ,2007 by the City of Temecula, a municipal corporation duly organized under the applicable laws ofthe State of California (the "City"), and Verizon California Inc., a corporation duly organized under the applicable laws ofthe State of California ("Franchisee"), with respect to the following recitals offact: A. City and Franchisee are parties to that certain Cable Franchise Agreement dated July 11, 2006 (the "Franchise Agreement") that grants to Franchisee the right to own, construct, operate and maintain a Cable System in the Franchise Area designated in the Franchise Agreement. Capitalized ternlS used herein and not otherwise defined shall have the meanings assigned to those ternlS in the Franchise Agreement. B. City and Franchisee desire to amend certain provisions of the Franchise Agreement to modify the respective rights and obligations of the parties. NOW THEREFORE, in consideration ofthe mutual promises contained herein, the parties agree as follows: 1. Amendment of Section 3.1.2. Section 3.1.2 ("Ex1:ended Service Area") ofthe Franchise Agreement is anlended to read as follows: "3.1.2. Extended Service Area: Within twenty seven (27) months following the Service Date, Franchisee shall provide Cable Service to all residential areas in the Ex1:ended Service Area subject to the conditions of Section 3.1.1 above and other terms set forth herein. Provided, however, that the Ex1:ended Service Area boundaries may be modified in whole or in pat by Franchisee by demonstration to City that it would be technically or economically infeasible to serve an area within the Ex1:ended Service Area." 2. Renlacement of Exhibit A. Exhibit A to the Franchise Agreement is hereby replaced with Exhibit A attached hereto, which modifies the Initial Service Area and the Ex1:ended Service Area. 3. Amendment to Exhibit B. TIle tex1: under the heading "Future City Facilities" in Exhibit B ("Municipal Buildings to be Provided Free Cable Service") is anlended in its entirety to read as follows: "Franchisee shall provide, without charge, one service outlet activated for Basic Service to the following municipal buildings, which are planned or under construction:" 4. Amendment to Exhibit C. Paragraph D of Exhibit C ("Support of Local Cable Usage") is amended in its entirety to read as follows: "D. Support of Local CaMe Usage: 1. Franchisee shall provide an annual grant to the City to be used in support ofthe production of local EG programming (the "Annual EG Grant"). Such grant shall be used by City ofthe EG access equipment, including, but not limited to studio and portable production equipment, editing equipment and program playback equipment, for renovation or construction of EG access facilities. 2. The Annual EG Grant provided by Franchisee hereunder shall not exceed one percent (100) ofthe Franchisee's Gross Revenue as defined in Section 1.18. The actual percentage amount and the commencement date to begin collection ofthe Annual EG Grant will be deternlined by the Temecula City Council. City shall give the Franchisee six1:y (60) days prior written notice before requiring payments under this section. TIle Annual EG Grant payment, along with a brief summary of the Subscriber infornlation upon which it is based, shall be delivered to City within six1:y (60) days after the beginning of each calendar year during the Franchise Term. Franchisee's obligation to pay the Annual EG Grant is contingent on all other cable operators providing EG support on the sanle percentage of Gross Revenue basis 3. TIle City shall provide Franchisee with a complete accounting annually of the distribution of funds granted pursuant to this Section." 5. No Imnlied Modifications. The parties confirm that, except as specifically set forth in this Anlendment, all of the ternls, covenants, and conditions set forth in the Franchise Agreement remain unmodified and in full force and effect. 6. Entire AQfeement. This Amendment and the attached Exhibit A supersede all prior or contemporaneous agreements, representations or understandings ofthe parties regarding its subject matter. This Amendment shall not be modified except by written instrument executed by both parties. 7. Binding Accentance. TIlis Anlendment shall bind and benefit the parties and their respective heirs, beneficiaries, administrators, executors, receivers, trustees, successors and assigns. TO EFFECTUATE THIS AMENDMENT, each of the parties has caused this Anlendment to be executed by its duly authorized representative on the date set forth below the authorized signature. APPROVED AS TO FORM: CITY OF TEMECULA Peter M. TIlOrson City Attorney Chuck Washington Mayor Date: ATTEST: Susan W. Jones, MMC City Clerk VERIZON CALIFORNIA INC., a California corporation By: Tim McCallion, President Date: EXHIBITS Exhibit A: Service Area Map Exhibit B: Municipal Buildings To Be Provided Free Cable Service EXHIBIT A - SERVICE AREA MAPS ~ " ~ .r= ~ _ 0 ~- 0= -~ Q.U ~ - ::;:.!l! ~ ~ " u ~ " ..: E ,,~ u -- <: 0 ~.~ U z ..;{ ""'lI . ~ N~ ~ o . . ~ , ~ o ~f , .' - .i!~ : ;I~ h mH ;ill: i I ~a:... .. .. ~ 0 EXHIBIT B MUNICIPAL BUILDINGS TO BE PROVIDED FREE CABLE SERVICE Pursuant to Section 3.3 of this Agreement, Franchisee shall provide, without charge, one service outlet activated for Basic Service to the following buildings used for municipal purposes. Citv Facilities: D City Hall 43200 Business Park Drive D F i el d Operati ons Center 43230 Business Park Drive D Temecula Public Library 30600 Pauba Road D Community Recreation Center 30875 Rancho Vista Road D Patricia H. Birdsall Sports Park (fornlerly Wolf Creek Sports Complex) 31621 Deer Hollow Way D Mary Phillips Senior Center 41845 6th Street D Temecula Community Center 28816 Pujol Street D Temecula Valley Museum 28314 Mercedes Street D Imagination Workshop, The Temecula Children's Museum 42081 Main Street D Old Town Temecula Community Theater 42051 Main Street D Harveston Community Park - Community Building 28582 Harveston Drive D Fire Station No. 12 28330 Mercedes Street D Fire Station No. 73 27415 Enterprise Circle West D Fire Station No. 84 30650 Pauba Road D Overland Administrative Center 32364 Overland Trail D Wolf Creek Fire Station 32211 Wolf Valley Road D Temecula Police Department/Southwest County Detention Center 30755-A Auld Road D Old Town Police Sub-Station 28410 Old Town Front Street, Suite 105 D Promenade Mall Police Sub-Station 40820 Winchester Road, Suite 1870 Temecula Vallev Unified School District Facilities: D District Office 31350 Rancho Vista Road D Maintenance and Operations/Transportation 40516 Roripaugh Road D Chaparral High School 27215 Nicholas Road D Great Oaks High School 32555 Deer Hollow Way D Rancho Vista High School 31340 Rancho Vista Road D Temecula Valley High School 21555 Rancho Vista Road D Erle Stanley Gardner Middle School 45125 Via Del Coronado D James L. Day Middle School 40775 Camino Campos Verdes D Margarita Middle School 30600 Margarita Road D Temecula Middle School 42075 Meadows Parkway D Vail Ranch Middle School 33340 Camino Piedra Rojo D Abby Reinke Elementary School 43799 Sunny Meadow Drive D Helen Hunt Jackson Elementary School 32400 Camino San Dimas D Crowne Hill Elementary 33535 Old Kent Road D Paloma Elementary School 42940 Via Rami D Pauba Valley Elementary School 22125 Regina Drive D Rancho Elementary School 31530 La Serena Way D Redhawk Elementary School 32045 Camino San Jose D Sparkman Elementary School 32225 Pio Pi co Road D Temecula Elementary School 41951 Moraga Road D Vail Elementary School 29915 Mira Loma Drive D Vintage Hills Elementary School 42240 Camino Romo D Ysabel Barnett Elementary School 39925 Harveston Drive Countv Facilities: D Temecula Branch Library 41000 County Center Drive Future Citv Facilities: Franchisee shall provide, without charge, one service outlet activated for Basic Service to the following municipal buildings, which are planned or under construction, if and when the incumbent cable operator serving the City provides a similar service to that location. D Roripaugh Fire Station #95 32121 S. Loop Road D New City Hall TBD (corner of Main St. and Mercedes St.) D Young Adult Teen Center D Expansion ofthe Temecula Community Center TEMECULA COMMUNITY SERVICES DISTRICT I~-- . , II ITEM NO.9 II , II - . . . I I II II __. . I MINUTES OF A REGULAR MEETING OF THE TEMECULA COMMUNITY SERVICES DISTRICT SEPTEMBER 11, 2007 A regular meeting of the City of Temecula Community Services District was called to order at 7:25 p.m., at the Temecula Duck Pond at 28250 Rancho California Road, 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 10 Minutes RECOMMENDATION: 10.1 Approve the minutes of August 28, 2007. 11 Financial Statements for the Fiscal Year Ended June 30. 2007 RECOMMENDATION: 11.1 Receive and file the Financial Statements for the Fiscal Year Ended June 30, 2007. 12 Securitas Securitv Aareement RECOMMENDATION: 12.1 Approve an Agreement between the Temecula Community Services District and Securitas Security Services USA Inc. to provide security services in the amount of $48,000. 13 Food and Beveraae Sales Aareement with Full Value Entertainment RECOMMENDATION: 13.1 Approve an agreement with Full Value Entertainment to provide concession services at the Old Town Temecula Community Theater. R:\Minutes\091107 MOTION: Director Washington moved to approve the Consent Calendar. Director Edwards seconded the motion and voice vote reflected unanimous aooroval. CSD DIRECTOR OF COMMUNITY SERVICES REPORT No reports at this time. CSD GENERAL MANAGERS REPORT No reports at this time. CSD BOARD OF DIRECTORS REPORTS No reports at this time. CSD ADJOURNMENT At 7:27 p.m., the Temecula Community Services District meeting was formally adjourned to Tuesday, September 25, 2007, 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\091107 2 Ii - I. ITEM NO.1 0 I I Approvals City Attorney Director of Finance City Manager ~ /112. c.kL- TEMECULA COMMUNITY SERVICES DISTRICT AGENDA REPORT TO: General Manager/Board of Directors FROM: Herman D. Parker, Director of Community Services DATE: September 25, 2007 SUBJECT: Acceptance of Landscape Bonds and Agreement for Parcel Map No. 23496 - Auto Mall Landscaped Medians PREPARED BY: Barbara Smith, Senior Management Analyst RECOMMENDATION: That the Board of Directors accept the surety bonds and agreement from I ndemnity Company of California to construct landscaped medians along Ynez Road between Rancho California and Solana Roads. BACKGROUND: As a result of the expanding development of the Auto Mall along Ynez Road a landscaped median will be constructed. The developer has provided Temecula Community Services District (TCSD) with surety bonds and an agreement to install the landscaping to TCSD's standards. Once the landscaping is completely installed and the TCSD has approved the landscape improvements, staff will recommend the appropriate release or reduction of the submitted bonds. At that time, TCSD will take over the maintenance responsibilities of the landscaped median improvements. The following is information regarding the bonds provided by Indemnity Company of California: 1. Faithful Performance Bond No. 733382S for $26,916.65 2. Labor and Materials Bond No. 733382S for $13,458.32 3. Warranty Bond No. 733382S for $2,691.66 FISCAL IMPACT: None. The cost of construction for the perimeter slope areas and open space lots will be borne by the developer. ATTACHMENTS: Vicinity Map Agreement/Bonds ~Q ~-?: "'-'A D~ - PROJECT SITE e 'J\C\Nf{'( M~! @ City Of Temecula Community Services Department 43200 Business Park Drive. Mailing Address: P.O. Box g033. Temecula, CA 92589-9033 (951) 694-6480. Fax (951) 694-6488 . www.citvoftemecula.o"'. Date of Agreement: 4. 1 ot -Df lit\!J!JIm~fn;ftjlflm~ltI[~m~Illl."I.II.I.'.',ll1iIJI13~lil~W!~1'&IfI~tll~~ r Name of Subdivider: I Fehcl+a H nDXlC-(aA rurpora.,non I I Address of Subdivider (street): .Ll. \ lo '2. ~ \'Y'CU"l1a.r thA Road .::j::\:: I 00 I Address of Subdivider (city, state, zip): 'Temecula, CA q 25Cl: I I Contact: Yr'ec.i Gnm-es Title: President Phone Number: (OJ,S i +q \ ~lo30 I Fax Number: PIS)I 4L1. 1-lt:'33 0 I Name of Subdivision: I t=e{ LC \ --\-Q Fin(YYJd I Tract No.: I PM 23496 I Parkland/Landscape Improvement Plans No.: : (Referred to as "Landscape Improvements") I Estimated Total Cost of Improvements: Estimated Completion Date: Referred to as "Completion Date") - - 'd.~.::''''._gAWi.,.':;'' - 'f'~'TIl,.,: K4~~Jt~!>l . , "'~'''''?lif~:',;..~~%WI~. I Name of Surety: .IY\derYlYr t+v Corvtpany OF I Address of Surety (street) III SO H+ch IS W1-e. I Address of Surety (city, state, zip): I ~&\IIV'~O:- ~~2S Qrl,(P'd..3 I Contact: .JfJ.j)e\-- S ho. vJ I Title: Sf, Uncfer-v0niLr I Phone Number: (Bt~ 5S2-Coi2S1 Fax Number: ("'25t$ S'!52-loI3cc, {'DYDorr:::u-h 0 n , c s D....C3~"OD2-'3 - Aut?> Mall M-el~ ItllllS $26,916.65 (])(o.30'O"f- C P L\ vote.~ IA.. '200 I I I I I I Faithful Performance Bond I Labor and Materials Bond I Bond for Warranty 73 33~~ 5 t 333 '6-d.. S '133'3 <Z3' a s 13,458.32 2,691.66 1 R:\KITCHELJ\80ndsI06-0023 Auto Mall Ynez RoadlParkland 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 L<;Iws 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:\KITCHELJIBonds\06-0023 Auto Mall Ynez RoadlParkland 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:\KITCHELJ\Bonds\06-0023 Auto Mall Ynez RoadlParkland 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 Obliaations to Construct Parkland/Landscaoina Imorovements. 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:IKITCHELJIBondsI06-0023 Auto Mall Ynez Road\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:\KITCHELJlBondsI06-0023 Auto Mall Ynez RoadlParkland Landscape Agreement.doc rights-of-W<;ly, 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 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 camply 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:\KITCHELJ\8ondsI06c0023 Auto Mall Ynez RoadlParkland Landscape Agreement.doc b. to secure payment to any contractar, 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 Imorovement 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:\KITCHELJ\Bonds\06-0023 Aulo Mall Ynez RoadlParkland Landscape Agreemenl.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 accardance with the CITY Standards in effect at the time of adoption of the Resolution of Approval. CITY reserves the right ta 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 ar 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. Insoection 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 af Approval. SUBDIVIDER shall at all times maintain proper facilities and safe access for inspection of the Parkland IllJprovements 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 af 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 RIKITCHELJ\BondsI06-0023 Auto Mall Ynez RoadlParkland 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. Relfllll5e 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 qnd 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:\KITCHELJIBonds\06-0023 Auto Mall Ynez Road\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. Iniurv to Public Imorovements. Public Prooertv 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, ar 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:\KITCHELJIBonds\06-0023 Aulo Mall Ynez RoadlParkland 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 f:'UBDIVIDER 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:IKITCHELJIBondsI06-0023 Auto Mall Ynez RoadlParkland 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 campletion, 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:IKITCHEW\BondsI06-0023 Auto Mall Ynez RoadlParkland 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 ar replacements to be made before SUBDIVIDER can be notified, CITY may, in its sole discretion, make the necessary 13 R:IKITCHELJ\8ondsI06-0023 Auto Mall Ynez RoadlParkland 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 Aaent 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 anyofthe 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 Aareements. 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'SObliaation to Warn Public Durina 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. Vestina of Ownershio. 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:IKITCHELJ\BondsI06-0023 Auto Mall Ynez RoadlParkland Landscape Agreement-doc 16. Final Acceotance 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 af 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 impravements. 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:IKITCHELJIBandsI06-0023 Aula Mall Ynez RaadlParkland 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 ar 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 Disoosition 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 RIKITCHELJIBondsI06-0023 Auto Mall Ynez RoadlParkland Landscape Agreement.doc 19. Time of the Essence. Time is of the essence of this Agreement. 20. Time for Comoletion of Work Extensions. SUBDIVIDER shall complete construction of the improvements required by this Agreement no later than e &? - 30- ~ ~. O~''3O. 0'9 JI 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 impravements 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 RIKITCHELJIBondsI06-0023 Auto Mall Ynez Road\Parkland Landscape Agreement.doc 22. Notices. All notices required or provided far 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: ~dln ffi FlnanClcU eorpomhon ~il~ ~,n1tl Pd I No.IOD Tr=~ LA Cl0501 Contact Name: h ~ b r~ Ynes Contact Phone No{ c::f:?D 4L=t1 '(IJ.::j DO Name/Address: 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. Caotions. 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. Utiaation 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:IKITCHELJl6ondsI06-0023 Auto Mall Ynez RoadlParkland Landscape Agreement.doc 26. Incoro.oration .of Recitals. The recitals to this agreement are hereby incorporated int.o the terms of this agreement. 27. Leaal Reso.onsibilities. The Subdivider shall keep itself inf.ormed of all I.ocal, State and Federal laws and regulati.ons which in any manner affect th.ose employed by it .or in any way affect the performance of its obligations pursuant t.o this Agreement. The Subdivider shall at all times observe and comply with all such laws and regulations. The City, and its .officers and empl.oyees, shall not be liable at law .or in equity .occasioned by failure of the Subdivider t.o comply with this section. 28. Entire A.oreement. This Agreement canstitutes the entire Agreement .of the parties with respect t.o the subject matter. All modificati.ons, amendments, or waivers of the terms .of this Agreement must be in writing and signed by the appr.opriate representative of the parties. In the case of the CITY, the appropriate party shall be the City Manager. 19 R:IKITCHELJIBondsI06-0023 Auto Mall Ynez RoadlParkland Landscape Agreementdoc IN WITNESS WHEREOF, this Agreement is executed by CITY, by and through its Mayor. SUBDIVIDER TEMECULA COMMUNITY SERVICES DISTRICT BOARD By: -..,A--. \ ) q... By: FetlClffi ~\Y\6I.X\CIOJ COrpon:::t.i10n Name: Fred D, br tmes Name: Title: , .p re9W1ffi + Jeff Comerchero Title: President By: Name: 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 Directo~ of Community Services APPROVED AS TO FORM: By: Peter Thorson City Attorney 20 RIKITCHELJlBondsI06-0023 Auto Mall Ynez RoadlParkland Landscape Agreement.doc CALIFORNIA ALL.PURPOSE ACKNOWLEDGMENT ~ E~ ,.,..... r~..""',,,....,.,;,,:.._"<.<""....v.k ,""" ~. ,~ ,......-{~""::-: m;,~.,~; ;"",.,',,_'-'_'.-h_'-v.. ,,,,.:.,,,,;..,,,,,;,,.,,,,',~'.;~',-,,.r._A~' ~. State of California , ss. County of lITVF.lI~TnR 3-ICf-07 Date before me, :BEVERLY SEARCH, NOTARY PUBLIC Name and lltle of OffICer (e.g., ff Jane Ooe, Notal)' PubUc"} On personally appeared FRED D. GRIMES Name{s) 01 Signer{s) tlPersonally known to me . ----I . - BEVERLY SEARCH -'. CommIsSion # 154446B Nofary Public. California ~ Riverside CounlV [ My Comm. Exp/leS Jan 14, 2OO9r 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 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 ot Document: Document Dale: Number of Pages: Signer(s) Olher Than Named Above: Capacity(ies) Claimed by Signer(s) Signer's Name: D Individual D Corporate Officer -Tille(s): D Partner - D Limited D General D Attorney in Facl 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 0 General D Attorney in Fact D Trustee D Guardian or Conservator D Olher: - ~ Top of thumb here Signer Is Representing: Signer Is Representing: ~~~~....-~....--'*" >'""""...."f-Y....~"'~AA"""....-^'f.,f~-"""'<V~ @2004Natlonal 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 EXHIBIT A (Attach the basis Jor the estimate of the cost of improvements.) 21 R:IKITCHELJIBondsI06-0023 Auto Mall Ynez RoadlParkland Landscape Agreement.doc ., Temecula Auto Mall- Ynez Medians 06-101 BUDGET ESTIMATE DESCRIPTION QUANTITY UNIT PRICE. TOTAL PLANTING TREES 24" BOX 36.00 EA. 225.00 8, I 00.00 SHRUBS 5 GAL 596.00 EA. 16.00 9,536,00 I GAL 262.00 EA. 5.00 1,310.00 SOIL CLEAR/WEED 8,675.00 S.F. 0.03 26.0.25 GRADE/AMEND S.F. 0.10 0.00 BARK 8,675.00 S.F. 0.15 1,301.25 CONCRETE MOW STRIP L.F. 2.95 0,00 PLANTING SUB-TOTAL 20,507.50 IRRIGATION KBI CHECK VALVE 8.00 EA. 7.50 60.00 CONTROLER ASSEMBLY EA. 5,000.00 0,00 RP.U I INCH EA. 200.00 0.00 RC.V. I INCH 3.00 EA. 35.00 105.00 SENNINGER PRS REG 3/4 28.00 EA. , 12.00 336.00 AMIAD DISC FILTER 3.00 EA. 20.00 60.00 QUICK COUPLER " 7.00 EA. 30.00 210.00 DURA END FLUSH CAP 28.00 EA. 3.50 98.00 RVALVE I INCH 3.00 EA. 30.00 90.00 BOWSMITH EMITTER SL210 967.00 EA. 0.90 870.30 RAINBIRD RAIN GUAGE EA. 42.00 0.00 BROWNLINE 1,872.00 EA. 1.05 1,965.60 FLOWMETER I INCH EA. 400.00 0.00 RAINBIRD BUBBLERS EA. 1.00 0.00 MAIN 2 INCH L.F. 2.25 0.00 1 INCH 653.00 L.F. 1.25 816.25 LATERAL 1-1/2 INCH L.F. 1.60 0.00 1-1/4 INCH L.F. 1.40 0.00 I INCH 715.00 L.F 1.20 858.00 3/4 INCH L.F. 1.05 0.00. SAW CUTTING EXISTING STREE'I L.F. 1,000.00 1,000.00 IRRIGATION SUBTOTAL 6,409.15 PLANTING AND IRRIGATION TOTAL 26,916.65 MAINTENANCE/MONTH '8,675.00 S.F. 0.G15 130.13 PER YEAR 1,561.50 '", Q6-101-CostEstimate~ WaterCalc2 'i\~, '" 1/26/07 CITY OF TEMECULA PARKLAND/LANDSCAPE FAITHFUL PERFORMANCE BOND EOND NO.: 7333828 PREMIUM: $807.00/TWO YEAR TERM WHEREAS, the City of Temecula, State of California, and Felicita Financial Corporation, (hereinafter designated as "Principal") have entered into an Agreement whereby Principal agrees to install and complete certain parkland improvements, which said Agreement, dated 4- - \ q 20 o=t-and identified as Temecula Auto Mall - Ynez Medians, CSD06-0023, 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 INDEMNITY COMPANY OF CALIFORNIA as surety, are held and firmly bound unto the City of Temecula, California, in the penal sum of $26,916.65, 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 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. R:\KITCHELJIBonds\lJ6-0023 Auto Mall Ynez Road\parkland landscape faithful performance. doc 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 MARCH 27, , 2007 (Seal) (Seal) SURElO I~~?MPANY OF CALIFORNIA By: ~~Q0i--- CIND~ L. RID(ir, ATTORNE~N FACT (Name) (Title) PRINCIPAL FELICITA FINANCIAL CORPORATION By: ~. 1\ L F-t2.. ffi D. G RI me5 (Name) p resl D-enT (Title) By: (Name) (Title) APPROVED AS TO FORM: Peter Thorson, City Attorney R:\KITCHELJ\Bonds\06-0023 Auto Mall Ynez Roadlparkland landscape faithful perfonnance.doc STATE OF California ] COUNTY' OF Los Angeles MAR 2 7 2007 On, before me, Debra K. Bel!, Notary Public (here insert name and title of the officer) pBlsonallyappeared CINDY L. RIDLEY personally known to me~X~tx.iXil.I1ilt:j{~.<;W.Q{'NJ{R~lYDctto 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 /lis/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behatf 01 which the person(s) acted. executed Ihe instrument. WtTNESS my hand and officiat seal. SignatureD ~f .~ o 0 (SEAL) I'l C -' . ..".. """"_.,\$,;',, .. . ",.. ........ ... r DEBRA K. BELL Commission # 1430084 ;;; Notary Public - California !ill LOS ANGELES County ... My Comm EJqJlRIsJUL 30,2007 [ ',I, .j '0.." "I.I.-'''l, u" J. I,,' ,I. This arco Ii)/" OllicluJ Notarial Sea! ..,..,.".""..."...".~...~., .., L" .. OPTIONAL ,I I, "" 11,11,;1,11111" 1;1 I I ,'1 Iii II ,II ,i ii" Though the data below is nol required by law, It may prove valuable to persons relying on the document and could prevent fraudulent realtachment of this form. CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT o INDIVIDUAL o CORPORATE OFFICER TITLE OF TYPE OF DOCUMENT TITLE(S) o PARTNER(S) o LIMITED o GENERAL I"J ATTORNEY-IN-FACT o TRUSTEE(S) D GUARDIAN/CONSERVATOR o OTHER: NUMBER OF PAGES DATE OF DOCUMENT SIGNER IS REPRESENTING: i'lAME OF PH~SON(S) on ENTITY(IESl SIGNER(S) OTHER THAN NAMED ABOVE In 1232 IREV 10/06) ALL-PURPOSE ACKNOWLEDGEMENT CALIFORNIA ALL.PURPOSE ACKNOWLEDGMENT ~~,~...-...:~,......:,-'<4 "...,,,-..~._":.:,,":,',,,,,,','~~- "'" ~k':""';"^ ,."A.;'._....;......;. ...... ,.. ',.~ .....:....;. :".' ''':.':.'''''-':''''-'':'''~-''.'.''ll;_':'._':..'_'..'._'':''.~ State of California }ss. County of RTVRR~TnF. On "3 2.9 -O--=f- Date before me, J)lSV....KLY SEARCH. NOTARY PUBLIC Name and Tlfle of Officer (e.g., ~Jane Doe, Notary Public") personally appeared FRED D. GRIMES Name(s) 01 Slgner(s) ., gpersonally known to me · . - J @ BEVERLY SEARCH i .. Commission # 1544468 ~ ,-,,; Notory Public. Collfomla ~ 1 . . Riverside County t MyComm. ExpIreaJan 14, 2llO9 , 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. . ~~7!]to;JJ1M1. V lr ~ Slgoa'"ffiof Nota", P"bli, OPTIONAL Though the information below is not required by lal-Y, 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 Seal Above Description of Attached Document Title or Type of Document Document Date: Number of Pages: Signer(s) Olher 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 Truslee D Guardian,or Conservator o Other: - ~ Top of thumb here 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 Olher: ~ -- Top of thumb here Signer Is Representing: Signer Is Representing: ~M'tJ-""'W~~"""'_'/""""'/_"""'~/""""'''''''''''~~AW~~'''~~~'''''';'"".J~ @2004 National Nola'Y Association. 9350 De Soto AVe., P.O. Box 2402. Chatsworth, CA 91313-2402 Item No. 5907 Reorder: Call Toll-Free 1-800-876-6827 BOND NO.: 7333828 'PREMIUM : INCLUDED IN PERFORMANCE CITY OF TEMECULA PARKLAND/LANDSCAPE LABOR AND MATERIALS BOND WHEREAS, the City of Temecula, State of California, and Felicita Financial Corporation, (hereinafter designated as "Principal") have entered into an Agreement whereby Principal agrees to install and complete certain Parkland Improvements, which said Agreement, dated 4~ 1 q , 200i-and identified as Temecula Auto Mall- Ynez Medians CSD06-0023, 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 Ternecula, 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 INDEMNITY COMPANY OF CALIFORNIA 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 $13,458.32 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. R:IKITCHELJ\BondsI06-0023 Auto Mall Vnoz Roadlpar1<land landscape labor and materials bond.doc Page 1013 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 cond ition 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 of time, alteration or addition to the terms of the Agreement or to the work or to the specifications, R:\KlTCHEW\6onds\06-0023 Auto Mall Ynez Road\parldand landscape labor and materials bond.doc Page 2 013 IN WITNESS WHEREOF, this instrument has been duly executed by the Principal and Surety above named, on MARCH 27, , 20 07 (Seal) CINDY L. ATTORNEY IN FACT (Title) APPROVED AS TO FORM: Peter Thorson, City Attorney (Seal) OF CALIFORNIA PRINCIPAL FELICITA~INANCIAL CORPORATION ~ By: d-- {\ . OFrpr:;# D, Gn YY1eS (Name) Presiclen+- (Title) By: (Name) (Title) R:\K1TCHEW\BondsI06-0023 Auto Mall Ynez Roadlparkland landscape labor and materials bond.doc Page 3 013 STATE OF California COUNTY OF Los Angeles ] OIL MAR ~} 2007. before me, Debra K. Bell. Notary Public (here insert name and title of the officer) personally appeared CINDY L. RIDLEY personally known to mettl!~XQ[!KJ1!!lQX1J1/~~~~to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowtedged 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 behalt ot which the person(s) acted, executed the instrument WITNESS my hand and officiat seat. Sl9natuq;)O fbuJ?-.{JeJ2p (SEAL) . . ,: ' ~ ...... - ~ - ""'- .-. r I@ DEBRA K. BELL r ~.... CommiSSion # 1430084 ;t 'I Notary Public. ca..lifQrnia ", (; LOS ANGELES County .- J ." . My Comm ExpIlllsJUL30, ~0~7l i "","",;,,'J,-'''I.. -- , I "...' .'_'0",'''_-'' " ' This urea/i)/" O(jiciu/ l'v'o/ario/ Seal .'i.w~_;,,~,,~,,::llilln;M~";l<";~"lu.;,i'"III,I";';~<I~",h,1ijl~,llllIll,I;";,'llilll.,,I~11 11111'. II "II OPTIONAL ,I, I I i III II;, II I I ,II, dli / II, 1111,111 I, "" I, III i,", 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(5j D PARTNER(S) D LIMITED D GENERAL EJ ATTORNEY IN-FACT D TRUSTEE(S) [] GUARDIAN/CONSERVATOR D OTHER: NUMBER OF PAGES DATE OF DOCUMENT SIGNER IS REPRESENTING: tlp,ME OF PEr-1S0N(SI OR ENTITY(IES) SIGNER(S) OTHER THAN NAMED P.BOVE 10.1232 (REV 10/06) ALL-PURPOSE ACKNOWLEDGEMENT CALIFORNIA ALL.PURPOSE ACKNOWLEDGMENT ~""""'....'<.C~ ~ ~,,~ r-, .' ., E' . """""~_"_'''~'~ "_.:_:'_ ,,~ ,;. ,~~ '_,~ ",.,,, ',;,':'.~~.".,..-_.,.,.,r'"'''"'''S''~''~'''-'.''''''':'''.''i'''''':''' E' " h....'-.A.'..A-;,,~ State of California .58. County of RTVRR~TDR On 3- 2<:1 -0+ Date before me, :BEVERLY SEARCH I NorARY PUBLIC Name and l'llie of OffICer (e.g., "Jane 000, Notary Public") personally appeared FRED D. GRIMES Name(s) of Signer(s) npersonally known to me ~..,.... 1~~ 8~R~S~CH _'-" Commission # 1544468 ~ . . Notary Public. California ~ J Rlvelskfe County .l 1 MvComm. Exp/IesJan 14, 2009( 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 capacily(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 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 ot Document: Document Dale: Number of Pages: Signer(s) Olher Than Named Above: Capacity(ies) Claimed by Signer(s) Signer's Name: o Individual o Corporate Officer - Tltle(s): o Partner - 0 Limiled 0 General o Attorney in Facl o Trustee o Guardian or Conservator o Other: .~ -- Top of thumb here Signer's Name: o Individual o Corporate Officer - litle(s): o Parlner - 0 Limited 0 General o Attorney in Fact o Trustee o Guardian or Conservator o Other: ~ ~ Top of thumb here Signer Is Representing: Signer Is Representing: . -.' -.. . ~ .. -.' - 1l"~""""'''~/_~/^''''' _,. J. -' J @2004NatlonalNotaryAssociation . 9350 De Solo Ave., P.O. Box 2402. Chatsworth, CA 91313-2402 Item No. 5907 Reorder: Call Toll-Free 1.800-876-6827 BOND NO.: 7333828 .PREMIUM: INCLUDED IN PERFORMANCE CITY OF TEMECULA PARKLAND/LANDSCAPE WARRANTY BOND WHEREAS, the City of Temecula, State of California (hereinafter designated as "City"), and Felicita Financial Corporation (hereinafter designated as "Principal") have entered into an Agreement whereby Principal agrees to install and complete certain designated Parkland Improvements, which said Agreement, dated --4 - 1 c::r 20 D+. and identified as Temecula Auto Mall- Ynez Medians, CSD06-0023, 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 ofthe improvements; NOW, THEREFORE, we the Principal and INDEMNITY COMPANY OF CALIFO~ surety, are held and firmly bound unto the City of Temecula, California, in the penal sum of $2,691 .66, 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 R:\KlTCHELJlBondsI06-0023 Aulo Man Ynez Road\par1dand landscape Warranty Bond 1.doc Page 1013 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:\KITCHEW\6onds\06-0023 Auto Mall Ynez Roadlparkland 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 MARCH 27, (Seal) SURW:. INDE By: ( . --c;.-. . . . CINDY L. RIDL~ (Name) ,20~. (Seal) o ANY OF CALIFORNIA PRINCIPAL: FELICITA FINANCIAL CORPORATION ~ _____ By: c-\- II <1- FrFrl D, b r~ YY)f?S (Name) ATTORNEY IN FACT (Title) APPROVED AS TO FORM: Peter Thorson, City Attorney PrC51 d.QX1t (Title) By: (Name) (Title) R:\KITCHELJlBondsI06-0023 Auto Mall Vnez Roadlparkland landscape Warranty Bond l.doc Page 3 of 3 STATE OF California ] COUNTY OF Los Angeles MAR 2 7 Z007 011__-.. . ..___..____, before me_ Debra K. 8ell, Notary Public (here insert name and title of the officer) personally appeared CINDY L. RIDLEY personally known to me~l1iX!X~x~I&ili.~Illfxi&1i.~~;";"'A,*.i:.to be the person(s) whose name(s) is/are subscribed 10 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 at which the person(s) acted, executed the instrument, WITNESS my hand and official seal. Signatur~~ (SEAL) DEBRA K. BELL ' Commission # 1430084 r ~gn~GUbljC - California ;a-. My ElES COunly e- . Comm ExpIT8SJUL 30 2007 ... , .... "';"'" .~,,,,( This (lrca/or Of/icial No(arial .)('o! 11I1; ., . Jlllll.ill~Olli:llijiiIWll"j";,liilLlj,,"ijIJjklllllliILIIOlJl.lk~IIlIIHIII~,LIL"",Il.l.U.Ld...lI..Jl1llL.III,UJ 0 PTI ONAl 1,111111 Hid 1''',11',111;, d 1,Illlii,llIll" ", I, III;ill, Though the data below is nol 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 [J CORPORATE OFFICER TITLE OF TYPE OF DOCUMENT TlTl.E(S) D PARTNER(S) D LIMITED D GENERAL EJ ATTORNEY-IN-FACT D TRUSTEE(S) D GUARDIAN/CONSERVATOR D OTHER NUMBER OF PAGES DATE OF DOCUMENT SIGNER IS REPRESENTING: ~IAf,,1c OF PEHSONISI OR [NTITY(IESI SIGNER(S) OTHER THAN NAMED ABOVE 10-1 ;'32 (REV 10/06) ALL-PURPOSE ACKNOWLEDGEMENT CALIFORNIA ALL.PURPOSE ACKNOWLEDGMENT : ~. "" '.. ;'~:_,;..'~:1'..'f"~,"""".~~ ., "~N';'''~ ~ ~""'" <..;.;, .6',.. >..:_" .~,~',,;"-',~ ',~ ,,,,, >L .....R. - _.e~-:-VA"~','~:-:""~~.'~:':-1fi:tIJ. State of California . ss. County of lIT1TF.R!':mR On 3. /_Gj-Ol Date before me, D.I5H;KLY SEARCH, NorARY PUBLIC Name and 1Ille of OffICer (6.g., "Jane Doe, Notary Pub~c") personally appeared FRED D. GRIMES Name(s)oISlgner{s) iUPersonally known to me l' ....-.------.-.-- '. BEVERLY SEARCH _ . CommWion # 1544468 ~ ~ . -,,; Notary Public. CoUlomla i J Riverside County f- 1 MyComm. Explr...Jan 14.2009 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 capacify(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 d nd'~0J1JN 11 OPTIONAL Though the infonnation 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 General o Attorney in Facl o Trustee o Guardian or Conservator o Olher: ~ - Top of thumb here Signer is Representing: Signer Is Representing: ~7"'-"""/_"'fJ~~~ @2004 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 POWER OF ATTORNEY FOR DEVELOPERS SURETY AND INDEMNITY COMPANY INDEMNITY COMPANY OF CALIFORNIA PO BOX 19715, IRVIN[:. CA 92623 l(49) 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: *** Cindy L. Ridley, Janet L. Shaw, Cheryl Caiger, Debra Bell, Thomas C. Moore, Gerald L. Ervin, jointly or severally*** as their true and lawful Attorncy(s)-in-Fact, to make, execute. ddiver and acknowledge. for and on behalf of said corporations, as sureties. bonds, undertakings and contracts of suretyship giving 11lld granting unto said Attorney(sHn-Facl full power and authority to do and to p..::rfonn every act necess,IIY. rcquisitt: or proper to be done in connection there"...ith as each of said corporations could do. bm reserving to each of said corporations full power of substitution and revocation. and all ofthlil acts of said AltOllley(s)-in-Fact. pursuanl [0 these presents. arc hereby ralified and contirmeu. This Power of Attorney is granted and is signed hy 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, effeclive as of November I, 2000: RESOLVED. thut the Ch:linnan of the Board. the President and any Vice President of the corporation be. and that each of them hereby is. authorized to execute Powers ofAltorney, qU:llifying the auorney(s) named in the Powers of Auomey lo execute. on behalf of the corporations. bonds. undertakings and contracts of suretyship; and that the Secretary or any Assistant Secrelary of the COIlJOrations bc, and each of thcm hereby i~, authorized to attest the execution of any such Power of Attorney; RESOLVED, FURTHER. that the signatures of such officers Illay be aftixed to any sllch Powcr of Attorney or to any certiticatc relating thereto by ti-u::simile, and any sllch Power ofAtlorney or certitkate bc=aring such facsimile signatures shall be valid and binding upon the corporation when so atlixcd 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 CALlFORI\IA have severally caused these presents to be signed by their respective Executive Vice President and attested by their respective Secretary this 1st day of December. 2005. -----~ ( , ) :~) Bv: Walter A. Crowell, Secretary ~~ .....'i'..;..'ND..~....... ,""~"'~"""'o""-'~"'""'" f~.."'O~P R41'.....~ \ ({c 1~C{~ ~.~) ~~~.........IOW(). ,""',.4.'b,~' ".;0 ..........." 'r-';;;'.," ..,.........?r...,......... Bv' David H. Rhodes. Executive Vice~Presidenl STATE OF CALIFORNIA ] COUNTY OF ORANGE On December L 2005 before me, Gina L. Gamer. NotalY Public (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) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his,11er/their authorized capacity(it's), and that by his/her/their signature(s) on the instrument the person{s), or the entity upon behalf of which the 1'er50n(s) acted, executed the instrument. Signature ~.~~ (SEAL) ~'e----' , ~IN~ L GA~NE~ '" . - COMM. # 1569561 ~ NOTARY PUBLIC CALIFORNIA ~ 3: ORANGE COUNTY " j . ~_~_omm. ~xpires ~_1~2~ ,,__... 4......~ -. _...... WITNESS my h:l!ld and official seal. CERTII-'ICATlr: The undersigned, as Assislant Secretary, of DEVELOPERS SURETY AKD INDEMf\:ITY COMPANY and INDEMNITY COMPANY OF CALIFORNIA. docs hereby certify thaI the fbregoing Power of Attomey remains in full force and has not been revoked, and furthennurc. that the provisions of the resolutions of the respective Boards of Directors of said corporations sel forth in the Power of Anorney, are~J{~ee~~ ~t20070fthiS Certificate. This Certiticale is executed in the City of Irvine. Calit(lmia. the _ day of ' Bv Alhert Hillebrand, Assistant ,secretary ~I-~ .~ ID-1380{Rev.12/05) Ii - I. ITEM NO. 11 I I Approvals City Attorney Director of Finance City Manager ~ /}12 ~ TEMECULA COMMUNITY SERVICES DISTRICT AGENDA REPORT TO: General Manager/Board of Directors FROM: Herman D. Parker, Director of Community Services DATE: September 25, 2007 SUBJECT: Agreement Between the City of Temecula and MuniFinancial for Service Level C Election Services PREPARED BY: Barbara Smith, Senior Management Analyst RECOMMENDATION: That the Board of Directors: 1) Approve the Agreement between the Temecula Community Service District and MuniFinancial for Service Level C Election Services in the amount of $35,510. BACKGROUND: Service Level C rate and charge was established upon the City's incorporation to provide funding, through property tax assessments, for residential perimeter landscaping. Since incorporation, the City, through the Temecula Community Services District (TCSD) has never increased the amount of the assessed Service Level C rates. Meanwhile, the costs for utilities and maintenance costs have continued to rise. As a result, in most cases, the charge currently being collected does not cover the actual cost to maintain each landscape area or "zone". The passage of California Proposition 218 in 1996 restricted the City's ability to increase Service Level C rates and charges without conducting a noticed public hearing and a property owner mailed ballot election. MuniFinancial has been the District's consultant for our annual assessments for many years. Staff feels that MuniFinancial is the best qualified for providing assessment-related tasks including Service Level C election services. The agreement's scope of work included providing current Riverside County Assessor's Office property owner data base, coordinating the printing, mail merge and mailing of both the Notice of Public Hearing and Ballot documents as required by law. This scope includes the coordination of the Spanish versions of the Notice of Public Hearing and Ballot documents. Also included is assistance to Temecula's City Clerk's staff in tabulation of the ballots. The ballots will include a bar code to identify the property owner, zone and vote. During the tabulation of the ballots MuniFinancial staff will assist by scanning the bar codes and providing the City Clerk's Office with any required reports with tabulation results. The tabulation will include 28 results for each of the 28 zones. The postage required in the amount of approximately $13,000 will be paid directly to the U.S. Postmaster. FISCAL IMPACT: Adequate funds are available to fund this contract in the amount of $35,510 as well as postage expenses in the approximate amount of $13,000 in Community Services 2007-2008 Budget. ATTACHMENTS: Professional Services Agreement AGREEMENT FOR CONSULTANT SERVICES BETWEEN THE TEMECULA COMMUNITY SERVICES DISTRICT AND MUNIFINANCIAL SERVICE LEVEL C ELECTION SERVICES THIS AGREEMENT is made and effective as of September 25, 2007, between the Temecula Community Services District, a municipal corporation ("District") and MuniFinancial ("Consultant") In consideration of the mutual covenants and conditions set forth herein, the parties agree as follows: 1. TERM. This Agreement shall commence on September 25, 2007, and shall remain and continue in effect until tasks described herein are completed, but in no event later than June 30, 2008, 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. 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 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 payment rates and schedule of payment are null and void. This amount shall not exceed Thirty Five Thousand Five Hundred Ten dollars and No Cents ($35,510.00) 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 General Manager. Consultant shall be compensated for any additional services in the amounts and in the manner as agreed to by General Manager and Consultant at the time District's written authorization is given to Consultant for the performance of said services. 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 District disputes any of consultant's fees it shall give written notice to Consultant within 30 days of receipt of an invoice of any disputed fees set forth on the invoice. P"\Finance\Agreement Samples.2007\Consultant-Prof Srvc Agrmnt.Sample. Revised 2007 Updated 6/28/07 5. SUSPENSION OR TERMINATION OF AGREEMENT WITHOUT CAUSE. a. The District 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 District 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 District 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 District. Upon termination of the Agreement pursuant to this Section, the Consultant will submit an invoice to the District pursuant to Section 4. 6. DEFAULT OF CONSULTANT. a. The Consultant's failure to comply with the provisions of this Agreement shall constitute a default. In the event that Consultant is in default for cause under the terms of this Agreement, District 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 General 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 District 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. Consultant shall maintain complete and accurate records with respect to sales, costs, expenses, receipts and other such information required by District 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 identified and readily accessible. Consultant shall provide free access to the representatives of District or its designees at reasonable times to such books and records, shall give District the right to examine and audit said books and records, shall permit District 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 2 providing the services to be performed pursuant to this Agreement shall become the sole property of the District and may be used, reused or otherwise disposed of by the District without the permission of the Consultant. With respect to computer files containing data generated for the work, Consultant shall make available to the District, upon reasonable written request by the District, the necessary computer software and hardware for purposes of accessing, compiling, transferring and printing computer files. 8. INDEMNIFICATION. The Consultant agrees to defend, indemnify, protect and hold harmless the City, District, and/or Agency, 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, District and/or Agency, its officers, agents, employees or volunteers 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 District. 9. 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 Scooe 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 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 employees. 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 ($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 ($1,000,000) per accident for bodily injury and property damage. 3 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 General Manager. At the option of the General 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: i. The District, 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 District, its officers, officials, employees or volunteers. ii. For any claims related to this project, the Consultant's insurance coverage shall be primary insurance as respects the District, its officers, officials, employees and volunteers. Any insurance or self-insured maintained by the District, its officers, officials, employees or volunteers shall be excess of the Consultant's insurance and shall not contribute with it. iii. Any failure to comply with reporting or other provisions of the policies including breaches of warranties shall not affect coverage provided to the District, its officers, officials, employees or volunteers. iv. 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. v. Each insurance policy required by this agreement shall be endorsed to state: should the policy be canceled before the expiration date the issuing insurer will endeavor to mail thirty (30) days' prior written notice to the District. 6) If insurance coverage is canceled or, reduced in coverage or in limits the Consultant shall within two (2) business days of notice from insurer phone, fax, and/or notify the District via certified mail, return receipt requested of the changes to or cancellation of the policy. 4 a. Acceotabilit\{ of Insurers. Insurance is to be placed with insurers with a current A.M. Best's rating of no less than AVII, unless otherwise acceptable to the District. Self insurance shall not be considered to comply with these insurance requirements. b. Verification of Covera,ae. Consultant shall furnish the District 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 District. All endorsements are to be received and approved by the District before work commences. As an alternative to the District's forms, the Consultant's insurer may provide complete, certified copies of all required insurance policies, including endorsements effecting the coverage required by these specifications. 10. INDEPENDENT CONTRACTOR. a. Consultant is and shall at all times remain as to the District 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 District 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 District. Consultant shall not incur or have the power to incur any debt, obligation or liability whatever against District, or bind District 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, District shall not pay salaries, wages, or other compensation to Consultant for performing services hereunder for District. District shall not be liable for compensation or indemnification to Consultant for injury or sickness arising out of performing services hereunder. 11. 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 District, 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. 12. 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 District's prior written authorization. Consultant, its officers, employees, agents or subcontractors, shall not without written authorization from the General 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 District. Response to a subpoena or court order shall not be considered "voluntary" provided Consultant gives District notice of such court order or subpoena. 5 b. Consultant shall promptly notify District 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 District. District 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 District and to provide District with the opportunity to review any response to discovery requests provided by Consultant. However, District's right to review any such response does not imply or mean the right by District to control, direct, or rewrite said response. 13. 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 District via U.S. Mail: City of Temecula Mailing Address: P.O. Box 9033 Temecula, California 92589-9033 Attention: City Manager To District via Courier Service: 43200 Business Park Drive Temecula, California 92590 Attention: City Manager To Consultant: MuniFinancial 27368 Via Industria, Suite 110 Temecula, CA 92590 Attn: Chris Fisher, Principal Consultant (951) 587-3500 (951) 587-3510 - fax 14. 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 District. 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. 15. 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. 6 16. GOVERNING LAW. The District 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 attorney fees and litigation expenses for the relief granted. 17. PROHIBITED INTEREST. No officer, or employee of the District of Temecula shall have any financial interest, direct or indirect, in this Agreement, the proceeds thereof, the Consultant, or Consultant's sub-contractors for this project, during his/her tenure or for one year thereafter. The Consultant hereby warrants and represents to the District that no officer or employee of the District of Temecula has any interest, whether contractual, non-contractual, financial or otherwise, in this transaction, or in the business of the Consultant or Consultant's sub-contractors on this project. Consultant further agrees to notify the District in the event any such interest is discovered whether or not such interest is prohibited by law or this Agreement. 18. 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. 19. 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 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, CSD President ATTEST: Susan W. Jones, MMC, City Clerk/Board Secretary APPROVED AS TO FORM: Peter M. Thorson, City Attorney CONSULTANT: Muni Financial 27368 Via Industria, Suite 110 Temecula, CA 92590 Chris Fisher, Principal Consultant By: Name: Title: By: Name: Title: 8 EXHIBIT A Scope of Services Temecula Community Services District (TCSD) Service Level C Noticing and Balloting The Temecula Community Services District (TCSD) Service Level C (perimeter Landscaping and Slope Maintenance) currendy includes specific residential subdivisions (tracts) for which the TCSD provides on-going servicing, operation, and maintenance of perimeter landscaped areas and slopes within the public right-of-ways and dedicated easements adjacent to and associated with those developments. Service Level C currendy includes approximately 13,901 active parcels grouped into one (1) of thirteen (13) sub-areas (sub-service-levels) identified as C-1 through C-13. The City has previously determined an appropriate reorganization of the existing sub-areas into approximately thirty-one (31) sub-service-levels based on the residential subdivisions currendy within Service Level C and has identified the exiting parcels and proposed rates and charges associated with those specific improvements and sub-service-levels. The following outlines MuniFinancial's proposed scope of work and fees to assist the City with the required noticing and balloting of the new rate changes determined by the City. Our proposed scope of work includes coordinating the printing, processing and mailing of the notice of Public Heating and property owner ballots to all affected properties and developments identified by the TCSD. Specific tasks include the following. 1. Consult with TCSD staff to finalize the key dates and project timeline; and coordinate the identification of the affected properties and the proposed new rates and charges. 2. Using base electronic parcel information regularly updated by MuniFinancial for properties within the TCSD and the new rates and charges provided in electronic format by the City, we will develop a separate rates and charges database for Service Level C that contains updated parcel numbers, ownership and mailing information for all affected properties within the various service areas. This database will include the existing rates and charges as well as the proposed increase as applicable. This database will be utilized for the mailing of the notices and ballots utilizing property ownership information from available County Assessor's Office secured roll information. (Note: The mailing of both the Notice of Public Hearing and the Ballots shall be based on the final 2007/2008 fiscal year secured roll information that was established by the County Assessor's Office in July 2007.) 3. Review and confirm the number of parcels and proposed rates and charges provided by the City to ensure all affected properties have been properly identified and the proposed new rates and charges applicable to each tract and parcel have been appropriately applied. We will provide a summary table of the updated parcels and charges to the City for review and confirmation prior to mailing the notice of Public Hearing. 4. Upon completion of the parcel update for the new Service Level C charges, MuniFinancial will prepare either in hardcopy or electronically, a complete listing of the parcels and corresponding charges for the City to incorporate as an exhibit to the Report being prepared by the City for the Public Hearing. 5. For this project, it is anticipated that the City's proposed notice and ballot documents will be the same basic documents established earlier in the year for the proposed rate increase that was abandoned due technical errors. (The only anticipated change will be the inclusion of a Spanish Page 2 II MuniFinancial translation of the Notice of Public Hearing, which the City will provide). Due to several possible variables associated with the proposed rate changes, (Inflationary adjustment only; One-year increase, then the inflationary adjustment in subsequent years; Multi-year increase, then the inflationary adjustment in subsequent years) we anticipate that more than one (1) version of the notice and/or ballot will be required to address variations in the text associated with each proposed rate increase scenario as well as property specific mail-merge fields. We will assist the City with finalizing the notice and ballot to be mailed by reviewing the City's proposed notice(s) and ballot(s), and providing recommendations for possible modifications, particularly for those portions of the documents that incorporate merged fields from the source-mailing database. However, it should be noted that our proposed fee quote for this project assumes that the documents to be printed and mailed will be generally the same as those approved by the City for the previous mailings, and that only ~;n;~o 1 modifications to the documents will be required. If significantly more infonnation needs to be merged into these documents or additional versions of the documents are required for the project, our fee quote may be modified for the additional effort associated with these variables. 6. MuniFinancial will coordinate the preparation, mail-merge and processing of the notice of Public Hearing documents, and the ballot and notice of election instructions documents provided by the City. After finalizing these documents and establishing the mail-merge data, MuniFinancial will provide the City with samples of the final proof documents to be printed for their review prior to the actual mailing. 7. MuniFinancial shall cause the printing and mailing of the approved notices and ballots to the affected property owners within Service Level C based on available parcel and property owner information from the County Assessor's Office secured roll. For efficiency reasons, the actual printing and ~o;l;n:l of these documents will be out-sourced to the same company that has historically printed and mailed the TCSD's annual Public Hearing notices on behalf of MuniFinancial. An estimate of the cost to print and mail these documents is included in our fee quote, however MuniFinancial will invoice the City for the actual cost of printing and mailing the notices and ballots at our cost. (The estimate of the cost to print and mail these documents is based on previous services provided by the out -source company (W estern Graphics) and that two separate mailings of approximately 13,450 parcels each.) 8. As a double check of the Ballot mailing, at the City's request, MuniFinancial will create a "dummy -record" assigned to the City for each version of the notice and ballot documents. When the actual mailings occur, the City will be mailed "sample notices" and "sample ballots" for each version of the respective notices and ballots (addressed to a member of the TCSD staff). This process will allow the City to confirm that the ballots and supporting documents were properly printed and processed. 9. In cooperation with the Board Secretary/City Clerk, MuniFinancial will assist with the tabulation of all retuned ballots if the City authorizes the use of our bar-coding system for the ballots mailed. MuniFinancial has developed proprietary software that utilizes bar-coding fields on the ballots, allowing us to tabulate approximately 400 to 700 ballots per hour. This software not only expedites the balloting tabulation, it provides an electronic tracking and summary of the ballots tabulated. MuniFinancial anticipates providing up to three staff members for an entire day to tabulate the returned ballots the day after the election is closed and the ballots are to be counted. While there is no way to anticipate how many ballots the City will receive, it is probably a safe assumption that approximately half of the ballots will be returned. With the assistance of City staff we estimate that this number of ballots can be opened and tabulated in a single eight to twelve hour day, which is reflected by our fee proposal. MuniFinancial will provide the balloting II MuniFinancial Page 3 results to the Board Secretary I City Clerk once tabulation is complete for their review and certification. 1 o. We will be available by telephone to answer questions regarding the project from City staff during the course of the project. ~ EXHIBIT B Fees for Services MuniFinancial will provide the services described herein for the following fees. These fees include all expenses associated with the project (excluding postage), but the fees for printing and processing of the documents to be mailed is only an estimate of the costs based on the type and number of pieces for each mailing and the approximate 13,450 parcels. Actual printing and processing costs will be billed to the City at our cost. Additional meetings or tasks outside our proposed scope of work will require an additional fee. Prepare and update the Mailing Data, Notice and Ballot Documents and Coordinate the Mailing Pracess Assist with Ballot Tabulation Sub-Total MuniFinancial Services I Estimated Printing & Processing of the Notice of Public Hearing (1) $ 8,580 4.080 $12,660 $ 9,400 Estimated Printing & Processing of the Ballots, Notice of Election & Instructions (2) Sub-Total Estimated Printing & Processing Fees I Total Estimate Cost I 13.450 $22,850 $35,510 (1) Assumes this mailing will include: a generic Notice of Public Hearing printed on two 8.5 x 11 double-sided pages (both an English and Spanish version); and, a mail-merged attachment printed on one 8.5 x 11 double-sided page that is English on one side and Spanish on the other. (TotalS pieces) (2) Assumes this mailing will include: the Notice of Election printed on one 8.5 x 11 doubleHsided page (both an English and Spanish version); the Ballot Instructions printed on one 11 x 17 double-sided page (both an English and Spanish version); and, the Ballot printed on one 8.5 x 11 double-sided page (with English on one side and Spanish on the other); plus a return envelop for the ballot. (Total of 6 pieces). (If postage is to be included in the return envelop, the City will coordinate and provide the artwork to print the return indicia and arrange for and pay such postage separately.) Our fee assumes the following: . Our fee is based on an estimated 13,450 parcels being noticed and balloted. Increases to the number of parcels may result in a corresponding increase to our fees. . The fees above include an estimate of the printing, processing and mail drop-off fOr the notices, ballots and related dncuments. These estimated fees for each of the two proposed ~";1;n3S are itemized separately above for reference purposes, but will be billed to the City of Temecula at our cost, with no overhead markup. . The fees above do not include postage for the mailing of the notices, ballots and related documents or postage for the returned ballots. The City will be responsible for paying all postage costs directly to the postmaster general or through other arrangements made outside Page 5 II MuniFinancial this scope of services and fees. The First Class postage for the two proposed mailings is estimated to be $13,050, based on the number of pieces in each mailing and the fact that both mailings will likely exceed the i-ounce weight limit for regular postage and the postage rate for a 2-ounce weight per piece will be required. . The fees above do not include our attendance at any staff meetings or Board of Director's Meetings. We will however, participate and attend City staff meetings and/or Board of Director's Meetings as requested by the City (schedules permitting) as optional services and for an additional fee. . Telephone conference calls are not considered "meetings" for the purpose of our proposal and are not limited by our scope of services. Invoicing We will invoice the City of Temecula montWy based on percentage of project completion. Additional Services Additional Services may be authorized and will be billed at our then-current hourly consulting rates. Our current hourly rates are: Division Manager Principal Consultant Senior Project Manager Project Manager Senior Project Analyst Senior Analyst Analyst Analyst Assistant Property Owner Services Representative Support Staff $200 190 155 135 120 110 90 75 50 45 \ . MuniFinancial Page 6 REDEVELOPMENT AGENCY Ii - I. ITEM NO. 12 I I MINUTES OF A REGULAR MEETING OF THE TEMECULA REDEVELOPMENT AGENCY SEPTEMBER 11, 2007 A regular meeting of the City of Temecula Redevelopment Agency was called to order at 7:27 p.m., at the Temecula Duck Pond at 28250 Rancho California Road, Temecula, California. ROLL CALL PRESENT: 5 AGENCY MEMBERS: Comerchero, Naggar, Roberts, Washington, Edwards ABSENT: o AGENCY MEMBERS: None. Also present were Executive Director Nelson, City Attorney Thorson, and City Clerk Jones. PUBLIC COMMENTS No reports at this time. RDA CONSENT CALENDAR 14 Minutes RECOMMENDATION: 14.1 Approve the minutes of August 28, 2007. 15 Financial Statements for the Fiscal Year Ended June 30. 2007 RECOMMENDATION: 15.1 Receive and file the Financial Statements for the Fiscal Year Ended June 30, 2007; 15.2 Approve an increase of $615,700 for property tax increment in the Debt Service Fund; 15.3 Approve an appropriation of $200,000 for pass-through agreements in the Debt Service Fund. MOTION: Agency Member Comerchero moved to approve the Consent Calendar. Agency Member Edwards seconded the motion and voice vote reflected unanimous aooroval. RDA EXECUTIVE DIRECTORS REPORT No reports at this time. R:\Minutes\091107 RDA AGENCY MEMBERS REPORTS No reports at this time. RDA ADJOURNMENT At 7:28 p.m., the Temecula Redevelopment Agency meeting was formally adjourned to Tuesday, September 25, 2007, at 5:30 p.m. for Closed Session, with regular session commencing at 7:00 p.m., City Council Chambers, 43200 Business Park Drive, Temecula, California Maryann Edwards, Chairman ATTEST: Susan W. Jones, MMC City Clerk/Agency Secretary [SEAL] R:\Minutes\091107 2 RDA DEPARTMENTAL REPORT Ii - I. ITEM NO. 13 I I Approvals City Attorney Director of Finance City Manager V /1/2 (J(,v TEMECULA REDEVELOPMENT AGENCY AGENDA REPORT TO: Executive Director/Agency Members FROM: John Meyer, Redevelopment Director DATE: September 25, 2007 SUBJECT: Redevelopment Departmental Monthly Report Attached for your information is the monthly report as of September 25,2007 for the Redevelopment Department. First Time Homebuyers Program Funding in the amount of $100,000 is available for FY 07 -08. Residential Improvement Programs The program budget for FY 07-08 is $350,000, with $36,900 funded on 7 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 and rough grading has been completed. Off site improvements are under construction. A tentative tract map has been approved for the adjacent property for two additional single family detached homes. 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 consists of 24 units and over 5,000 sq. ft. of retail/commercial. The project is located on the north side of Fifth Street, west of Mercedes. Construction is completed and all 24 apartment units have been leased. The tenant improvements are underway on the commercial units. 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. Vertical construction has begun. It is estimated that construction will be completed in the fall of 2007. The project is located on the north side of Fifth Street, west of Mercedes. Facade Improvement/Non-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 La Menagerie - Design and Install Wood Blasted Signs Chaparral Center Building - Sign Program Old Town Promotions/Marketing Hot Summer Niahts/Quilt Show/Howl-o-ween in Old Town Hot Summer Nights concluded on August 31 with the Bayou Brothers, Two of Us +1 Band, Viento Libre performing on the Pan Flute, and the sounds of bluegrass from the Silverado Band. kwards, The weekend also included craft and food vendors. The Quilt Show will be held in Old Town Temecula on Saturday October 6, 2007from 10:00 a.m. - 4:00 p.m. The event is sponsored by Valley of the Mist Quilters Guild and The City of Temecula. Over 150 quilts will be hung along porches and eaves of business on Old Town Front Street between Moreno Road and Santiago Road. In addition, there will be a Small Quilt Silent Auction, a Large Quilt Live Auction and new this year, Quilts for Sale. Both auctions will be held in the Old Town Community Theater Courtyard. The featured Quilter is Lyn Mann. Admission is free and all proceeds to benefit Hugs Foster Family Agency. Howl-o-ween in Old Town will be held on October 27 & 28, 2007. The weekend will include trick or treating at participating businesses throughout Old Town. It's a full day of goulish fun with Rosa's Cantina pumpkin toss, pumpkin decorating, face painting and costume contests. In addition, the pet costume contest will be held on Saturday, 1 p.m. at Sam Hicks Park and the 7th Annual Costume Walk Contest on Sunday at 3 p.m. at Butterfield Square on Front Street. The weekend will also include Dynamite Dave, that Wild West Zombie with a ghostly past. Other upcoming events will include Erie Stanley Gardner November 2, 3, & 4 and Dickens of a Christmas November 24 - December 23. Old Town Temecula Outdoor Quilt Show - ~. .~ Saturday, October 6, 2007 - Sponsored by: Valley of the Mist Quilters Guild and The City of Temecula Over 150 quilts will be hung along porches and eaves oC businesses on " Old Town-Front Street between Moreno Road and Santiago Road Small Quilt Silent Auction Large Quilt Live Auction New this year: Quilts for Sale '- '" J Look Cor both auctions in the Old Town Community Theater Courtyard located at 42051 Main Street Featured Quilter: Lyn Mann http:j jwww.quiltsbylyn.com Hours: 10:00 am - 4:00 pm Admission: Free Proceeds to benefit Hugs Foster Family Agency 1-15 to Exit Rancho CaliCornia Rd. West to Old Town-Front St. South on Old Town-Front St. Inquiries to: Ivtoqlt@hotmail.com or (951) 694-6412 visit www.valleyofthemistquilters.com ~,.I,. H",~l-<1 4;.v-.J.~l=~ t.1..J....n.lt::L" ~~~:~~~~ 6th Annual Erie Stanley Gardner Short Story Mystery Writing Contest Part oflhe Murder Mysiery Weekend November 2-4, 2007 Old Town Temecula Sponsored by the City of Temecula, Rosenstein & Hitzeman, AAPLC, and The Californian Rules: 1. A cover page must be attached to each story, including the story name, the name and address of the author, telephone number, contest category (middle school, high school, adult), approximate word count and e-mail address if applicable. 2. The author's name should not appear beyond the cover sheet. The story title should appear on all pages of the manuscript. The contest is run on a blind review and judges do not see the entrant's name until winners are chosen 3. All entries must be typed and double spaced on one side of 8-1/2 x 11 paper. Winning entries must later be submitted in a Word or Word Perfect document format. 4. l\1anuscripts will not be returned. 5. Stories that have been published previously are not eligible. 6. 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. No adult themes ---- which includes excessively foul language. Submission should be no more than PG-13 rated and should be suitable for reading by anyone. 7. Only one entry per person will be accepted and it must be the creation of that person in whose name it is submitted. 8. Professional writers (those who make at least half of their income writing fiction) and teachers of creative writing at the college level are not eligible to enter. 9. Stories should be of the mystery genre and include references to historical buildings and! or people, living or dead, of the Temecula Valley. 10. All work must be original work written by the applicant. Should work be discovered as a copy or contain plagiarized material, applicant/writer and his work will be disqualified. 11. Entries must be received by Oct. 12,2007. Submit all entries to the Erie Stanley Gardner Short Story Writing Competition, City of Temecula, P.O. Box 9033, Temecula, CA 92589-9033 or bring to City Hall, care of the Redevelopment Agency, at 43200 Business Park Drive, Temecula, CA, 92590. The Sponsors are not responsible for late, stolen, incomplete, illegible or misdirected mail or submissions. 12. Winning entries in the adult category will receive: $200 for first place, $100 for second place, and $50 for third place. Winning entries in the school 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 certificates for third place. 13. Only first place entries will be published in The Californian and the author will receive no remuneration from that newspaper for publishing those entries. 14. Any entry that does not conform to these rules will not be entered into the contest. 15. Winners will be invited to accept their awards on Nov 4,2007 at the Old Town Temecula Community Theater at 42051 Main Street for the conclusion of the Erle Stanley Gardner Mystery Weekend. Performance begins at 3 p.m. Awards to follow. PUBLIC HEARING Ii - I. ITEM NO. 14 I I Approvals City Attorney Director of Finance City Manager V ell ~ CITY OF TEMECULA AGENDA REPORT TO: City Manager/City Council FROM: Debbie Ubnoske, Director of Planning DATE: September 25, 2007 SUBJECT: Proposed Noise Ordinance adding Chapter 9.2 to Title 17 of the Temecula Municipal Code PREPARED BY: Emery J. Papp, Senior Planner RECOMMENDATION: That the City Council: 1. Introduce and read by title only an ordinance entitled: ORDINANCE NO. 07- AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TEMECULA ADDING CHAPTER 9.20 TO THE TEMECULA MUNICIPAL CODE ESTABLISHING CITYWIDE STANDARDS FOR REGULATING NOISE BACKGROUND: On April 12, 2005, the Temecula City Council adopted a comprehensive update of the Temecula General Plan. The General Plan includes a Noise Element which contains goals and policies aimed at reducing the impacts of ambient noise in the built environment. These goals and policies strive to minimize noise impacts by setting maximum acceptable noise levels and requiring the community to maintain acceptable noise standards. However, the City has not adopted a nuisance Noise Ordinance, making it difficult for enforcement officials to cite individuals who create or contribute to nuisance noises. The number of nuisance noise complaints received by the City has grown each year and the City Council has received reports of threats or vandalism against citizens who have asked their neighbors to keep the noise down or have reported them to enforcement officials. In response to these concerns the City Council directed staff to prepare a new Noise Ordinance that specifically addresses nuisance noises and enforcement. The City Council also appointed a Noise Subcommittee consisting of Mayor Chuck Washington and Council Member Maryann Edwards to work with staff in the preparation of the new Noise Ordinance. The Noise Subcommittee met on January 24, 2007, April 3, 2007, and May 16, 2007. The proposed Noise Ordinance was presented to the Planning Commission on June 6, 2007. The Planning Commission expressed several concerns with the proposed Noise Ordinance. During public comments, additional concerns were raised which prompted the Planning Commission to continue the item and direct staff to revise the draft Ordinance and respond to these concerns. These issues are identified in the September 5, 2007 Planning Commission Staff Report (Attachment No.2, pages 1 and 2). A joint City Council/ Planning Commission Noise Subcommittee meeting was held on July 24,2007. The meeting was noticed as a Public Meeting and members of the public were present. A general consensus was reached regarding the need to adopt a new Noise Ordinance, but additional issues were brought up by members of the public who attended the meeting. These issues are identified in the September 5, 2007 Planning Commission Staff Report (Attachment No.2, page 2). After the joint Noise Subcommittee meeting staff worked with the City Attorney to revise the draft Noise Ordinance to address the remaining concerns. On August 1, 2007, staff met with the Planning Commission Noise Subcommittee, Temecula Police Department and Code Enforcementto go over the proposed revisions. Some additional feedback was received and has been included in the draft Noise Ordinance. The revised draft noise Ordinance was presented to the Planning Commission on September 5, 2007. The Planning Commission was pleased with the changes to the draft noise Ordinance, but expressed a concern regarding the Special Standards for Barking Dogs and Keeping of Noisy Animals. The concern was with how to achieve compliance from repeat offenders if the duration of the offending noise was less than 30 minutes per occurrence. In addition, staff requested that an exemption for civic events held on public or private property be added back into the draft Noise Ordinance. Without such an exemption, staff would need to process approximately 50 Temporary Use Permits annually to continue holding these events. This would be time consuming for staff and there would be no reimbursement for staff time because fees are not collected for City sponsored applications. The Planning Commission concurred and moved to recommend approval of the Ordinance with the proposed change for civic events and a proposed revision to address enforcement of repeat noisy animal offenses. After the September 5, 2007 Planning Commission meeting, staff revised section 9.20.030 Exemptions, by adding an exemption for City sponsored events. In conjunction with the City Attorney, staff also revised section 9.20.060 E. Barking Dogs and Keeping of Noisy Animals, responding to concerns expressed by Commissioner Harter. The scope of the changes to Section 9.20.060 E. include adding prohibitive language that ties the offense to an individual person, adding a definition for "disturbing or offensive noise," listing the types of offenses in bullet format, and adding a third offense which responds to the concern of repeat offenders. ENVIRONMENTAL DETERMINATION: Staff has determined that Ordinance No. 07-_ (Ordinance Regulating Noise) is exempt from the requirements of the California Environmental Quality Act ("CEQA") pursuant to Title 14 of the California Code of Regulations, Section 15061 (b)(3) because it can be seen with certainty that there is no possibility that the Ordinance will have a significant effect on the environment. The Ordinance will have no adverse environmental affects because it will reduce the public's exposure to loud ambient noise levels and nuisance noise. FISCAL IMPACT: Purchase of noise measuring devices, purchase of noise measuring device calibration equipment, staff training and staff time for enforcement. ATTACHMENTS: Proposed CC Ordinance No. 07- September 5, 2007 Planning Commission Staff Report ORDINANCE NO. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TEMECULA ADDING CHAPTER 9.20 TO THE TEMECULA MUNICIPAL CODE ESTABLISHING CITYWIDE STANDARDS FOR REGULATING NOISE THE CITY COUNCIL OF THE CITY OF TEMECULA DOES ORDAIN AS FOLLOWS: Section 1. Chapter 9.20 is hereby added to the Temecula Municipal Code to read as follows: "CHAPTER 9.20 NOISE 9.20.010 Intent. At certain levels, sound becomes noise and may jeopardize the health, safety or general welfare of City residents and degrade their quality of life. This Chapter is intended to establish citywide standards to regulate noise. This Chapter is not intended to establish thresholds of significance for the purpose of any analysis required by the California Environmental Quality Act. No such thresholds are hereby established. 9.20.020 Definitions. Whenever used in this Chapter, the following terms shall have the following meanings: A. "Animal" means any bird, cat, dog, goat, horse, burro or donkey. B. "Audible" means capable of being heard by a person without the use or aid of an amplified hearing device. C. "Audio Equipment" means a television, stereo, radio, tape player, compact disc player, MP3 player, ~ Pod or other similar device. D. "City Manager" means the City Manager or his or her designee. E. "Decibel" means a unit (dB) for measuring the relative amplitude of a sound equal approximately to the smallest difference normally detectable by the human ear, the range of which includes approximately 130 decibels on a scale beginning with zero decibels for the faintest detectable sound. Decibels are measured with a sound level meter using different methodologies as defined below: 1. A-weighting (dBA) means the standard A-weighted frequency response of a sound level meter, which de-emphasizes low and high frequencies of sound in a manner similar to the human ear for moderate sounds. 2. Community Noise Equivalent Level (CNEL) means a 24-hour energy equivalent level derived from a variety of single-noise events, with weighting factors of 5 and 10 dBA applied to the evening (7 p.m. to 10 p.m.) and nighttime (10 p.m. to 7 a.m.) periods, respectively, to allow for the greater sensitivity to noise during these hours. 3. Ldn means Day-Night Average Sound Level. The A-weighted average sound level for a given area (measured in decibels) during a 24-hour period with a 10 dB weighting applied to night-time sound levels. The Ldn is approximately numerically equal to the CNEL for most environmental settings. 4. Maximum Sound level (Lmax) means the maximum sound level measured on a sound level meter. F. "Governmental Agency" means the United States, the State of California, the County of Riverside, the City of Temecula, or any combination of these agencies. G. "Motor Vehicle" means a vehicle that is self-propelled. H. "Noise" means any loud, discordant, raucous or disagreeable sound. I. "Occupied Property" means any property upon which is located a residence, business or industrial or manufacturing use. J. "Power Tools or Equipment" means any mechanical, electrical or pneumatic device used to perform or facilitate manual or mechanical work. K. "Public Property" means property owned by a governmental agency or held open to the public, including, but not limited to, parks, streets, sidewalks, parking lots and alleys. L. instruction at college level. "Public or Private School" means an institution conducting academic the preschool, elementary school, junior high school, high school, or M. "Sensitive Receptor" means a land use that is identified as sensitive to noise in the Noise Element of the Riverside County General Plan and the Noise Element of the Temecula General Plan, including, but not limited to, residences, schools, hospitals, churches, rest homes, cemeteries or public libraries. N. "Sound Amplifying Equipment" means a loudspeaker, microphone, megaphone, stereo equipment, portable radio, boom box, any musical instrument amplified by an electrical device, or other similar device. O. "Sound Level Meter" means an instrument meeting the standards of the American National Standards Institute for Type 1 or Type 2 sound level meters or an instrument that provides equivalent data. 9.20.030 Exemptions. Sound emanating from the following sources is exempt from the provisions of this Chapter: A. Facilities owned or operated by or for a governmental agency. B. Community Events on public or private property hosted or sponsored by the City. C. Capital improvement projects of a governmental agency. D. The maintenance or repair of public properties. E. Public safety personnel in the course of executing their official duties, including, but not limited to, sworn peace officers, emergency personnel and public utility personnel. This exemption includes, without limitation, sound emanating from all equipment used by such personnel, whether stationary or mobile. F. Public or private schools and school-sponsored activities. G. Property maintenance, including, but not limited to, the operation of lawnmowers, leaf blowers, etc., provided such maintenance occurs between the hours of 7 a.m. and 8 p.m. H. Motor vehicles, other than off-highway vehicles. This exemption does not include sound emanating from motor vehicle sound systems. I. Heating and air conditioning equipment. J. Safety, warning and alarm devices, including, but not limited to, house and car alarms, and other warning devices that are designed to protect the public health, safety, and welfare. K. The discharge of firearms consistent with all State laws. 9.20.040 General Sound level Standards. No person shall create any sound, or allow the creation of any sound, on any property that causes the exterior sound level on any other occupied property to exceed the sound level standards set forth in Tables N-1 and N-2. TABLE N-1 TEMECULA lAND USE /NOISE STANDARDS Property Receiving Noise Type of Use Residential Commercial and Office Light Industrial Public/lnstitutional Open Space Land Use Designation Hillside Rural Very Low Low Low Medium Medium High Neighborhood Community Highway Tourist Service Professional Office Industrial Park Schools All others Vineyards/Agriculture Open Space Maximum Noise level (ldn or CNEl, dBA) Interior Exterior 45 65 45 45 65/70' 70' 70 50 55 50 50 70 75 65 70 70 70/652 Maximum exterior noise levels up to 70 dB CNEL are allowed for Multiple-Family Housing. 2 Where quiet is a basis required for the land use. 3 Regarding aircraft-related noise, the maximum acceptable exposure for new residential development is 60 dB CNEL. TABLE N-2 NOISE/LAND USE COMPATIBILITY MATRIX Community Noise Exposure Land Use (Ldn or CNEL) 55 60 65 70 75 80 Residential' Transient Lodging - Motel, Hotel Schools, Libraries, Churches, Hospitals, Nursing Homes Auditoriums, Concert Halls, Amphitheaters' Sports Arena, Outdoor Spectator Sports' Playgrounds, Parks Golf Course, Riding Stables, Water Recreation, Cemeteries Office Buildings, Business Commercial, and Industrial, Manufacturing, Utilities, Agriculture Source: Modified from 1998 State of California General Plan Guidelines. 1. Regarding aircraft-related noise, the maximum acceptable exposure for new residential development is 60dB CNEL. 2. No normally acceptable condition is defined for these uses. Noise studies are required prior to approval. D Normally Acceptable: Specified land use is satisfactory, based upon the assumption that any buildings involved meet conventional Title 24 construction standards. No special noise insulation requirements. D Conditionally Acceptable: New construction or development shall be undertaken only after a detailed noise analysis is made and noise reduction measures are identified and included in the project design. D Normally Unacceptable: New construction or development is discouraged. If new construction is proposed, a detailed analysis is required, noise reduction measures must be identified, and noise insulation features included in the design. I Clearly Unacceptable: New construction or development clearly should not be undertaken. 9.20.050 Sound level Measurement Methodology. The actual location of a sound level measurement shall be at the discretion of the enforcement officials identified in Section 9.20.080 of this Chapter. Sound level measurements shall be made with a sound level meter. Immediately before a measurement is made, the sound level meter shall be calibrated utilizing an acoustical calibrator meeting the standards of the American National Standards Institute. Following a sound level measurement, the calibration of the sound level meter shall be re-verified. Sound level meters and calibration equipment shall be certified annually. 9.20.060 Special Sound Sources Standards. The general sound level standards set forth in Section 9.20.040 of this Chapter apply to sound emanating from all sources, including the following special sound sources, and the person creating or allowing the creation of the sound is subject to the requirements of that section. The following special sound sources are also subject to the following additional standards. Failure to comply will constitute separate violations of this ordinance. A. Power Tools and Equipment. No person shall operate any power tools or equipment between the hours of 10 p.m. and 7 a.m. such that the power tools or equipment are audible to a person located inside an occupied building. B. Audio Equipment. No person shall operate any audio equipment as described in 9.20.020(B), whether portable or not, between the hours of 10 p.m. and 7 a.m. such that the equipment is audible to a person located inside an occupied building. C. Sound Amplifying Equipment or Live Music. 1. It is unlawful for any person to cause, allow or permit the emission or transmission of any loud and raucous noise from any sound-making, sound-amplifying device or live music under his control or in his possession: a. Upon any private property b. Upon any public street, alley, sidewalk or thoroughfare c. In or upon any public park or other public place or property 2. The words "loud and raucous noise," as used in this section, shall mean any sound having such intensity or carrying power as to unreasonably interfere with the peace and quiet of other persons, or as to unreasonably annoy, disturb, impair or endanger the comfort, repose, health or safety of other persons. 3. The determination of whether a sound is "unreasonable," as used in paragraph 2 of subsection C of this section, shall involve the consideration of the level of noise, duration of noise, constancy or intermittency of noise, time of day or night, place, proximity to sensitive receptors, nature and circumstances of the emission or transmission of any such loud and raucous noise. D. Construction. No person shall engage in or conduct construction activity, when the construction site is within one-quarter mile of an occupied residence, between the hours of 6:30 p.m. and 6:30 a.m., Monday through Friday, and shall only engage in or conduct construction activity between the hours of 7 a.m. and 6:30 p.m. on Saturday. Further, no construction activity shall be undertaken on Sunday and nationally recognized holidays. Public works projects of any federal, state or local entity or emergency work by public utilities are exempt from the provisions of this subsection D. Residents working on their homes or property are exempt from the prohibition of construction activities on Sundays and holidays but must comply with the hourly restrictions set forth for Saturday when working on Sundays and holidays. The city council may, by formal action, exempt projects from the provisions of this chapter. E. Barking Dogs and Keeping of Noisy Animals. 1. No person having charge, care, custody or control of any animal shall permit such animal to emit any disturbing or offensive noise. The words "disturbing or offensive noise," as used in this section shall mean any noise from an animal that barks, bays, cries, whines, howls, screeches or makes any noise for an extended period of time whether day or night, regardless of whether the animal is physically situated in or upon private property. Such person is deemed to be in violation of this section if any of the following conditions exist: a. The animal emits disturbing or offensive noise incessantly for 30 minutes or more in any 24-hour period; or b. The animal emits disturbing or offensive noise intermittently for 60 minutes or more during any 24-hour period; or c. Enforcement officials witness such disturbing or offensive noise from the same property on three or more occasions during any 30- day period of time. An animal is not considered to be emitting disturbing or offensive noise for purposes of this article if, at any time the animal is making noise due to a person or other animal that is trespassing or threatening to trespass upon private property in or upon which the animal is situated, or when the animal is being teased or provoked. 2. Evidence of said disturbing or offensive noise shall be made by direct observation of an enforcement official present on site responding to a complaint from a neighbor, or a complaint form may be signed by a minimum of two neighboring property owners and submitted to an enforcement official. 3. Nothing in this chapter shall establish standards for private civil claims, in either civil court or small claims court, nor shall this chapter preclude any person from pursuing a private civil action in either civil or small claims court. 9.20.070 Exceptions. Exceptions may be requested from the standards set forth in Sections 9.20.040 (General Sound Standards) or 9.20.060 (Special Sound Sources Standards) of this Chapter and may be characterized as construction-related or single event exceptions. A. Application and Processing. 1. Construction-Related Exceptions. An application for a Construction Related Exception shall be made on a Minor Exception form provided by the Building and Safety Department and shall be accompanied by the appropriate filing fee. No Public Hearing is required. 2. Temporary Use Permit. An application for a Single Event Exception shall be made using the Temporary Use Permit application provided by the Planning Department and shall be accompanied by the appropriate filing fee. No Public Hearing is required. B. Requirements for Approval. The Director of Planning or his or her designee shall not approve a Minor Exception Application or Temporary Use Permit unless the applicant demonstrates that the activities described in the application would not be detrimental to the health, safety or general welfare of the community. In determining whether activities are detrimental to the health, safety or general welfare of the community, the Director of Planning or his or her designee shall consider such factors as the proposed duration of the activities and their location in relation to sensitive receptors. If a Minor Exception Application or a Temporary Use Permit is approved, reasonable conditions may be imposed to minimize the public detriment, including, but not limited to, restrictions on sound level, sound duration and operating hours. C. Appeals. 1. Construction-Related Exception. Any person aggrieved by or dissatisfied with the Planning Director's decision on an application for a Construction- Related Exception may appeal from such action by filing an appeal according to the procedures set forth in Section 17.03.090 of the Temecula Municipal Code. 2. Temporary Use Permit. Any person aggrieved by or dissatisfied with the Planning Director's decision on an application for a Temporary Use Permit may appeal from such action within 15 calendar days of the action by filing an appeal according to the procedures set forth in Section 17.03.090 of the Temecula Municipal Code. 9.20.080 Enforcement. A. The City Manager and his or her designee, including but not limited to police officers, code enforcement officers, park rangers or other enforcement officials shall have the authority to enforce the provisions of this Chapter. B. Any person who violates any provision of this Chapter is guilty of a misdemeanor, and upon conviction shall be punished as set forth in Chapter 1.20 of the Temecula Municipal Code. C. Any person who violates any provision of this Chapter shall be subject to the enforcement remedies of Chapters 1.21 and 1.24 of the Temecula Municipal Code. D. Nothing in this Chapter shall be intended to limit any of the civil or criminal remedies available to the City, nor shall it be intended to limit the City from engaging in efforts to obtain voluntary compliance by means of warnings, notices, administrative citations or educational programs. 9.20.090 Duty to Cooperate. No person shall refuse to cooperate with, or obstruct, the enforcement officials identified in Section 9.20.080 of this Chapter when they are engaged in the process of enforcing the provisions of this Chapter. This duty to cooperate may require a person to extinguish a sound source so that it can be determined whether sound emanating from the source violates the provisions of this Chapter. Section 2. PRIOR ORDINANCE. The provIsions of Chapter 9.20 shall supersede the provisions of any ordinances in conflict therewith adopted by reference in Chapter 1.08 of the Temecula Municipal Code. Section 3. SEVERABILITY. If any portion, provision, section, paragraph, sentence, or word of this Ordinance is rendered or declared to be invalid by any final court action in a court of competent jurisdiction, or by reason of any preemptive legislation, the remaining portions, provisions, sections, paragraphs, sentences, and words of this Ordinance shall remain in full force and effect and shall be interpreted by the court so as to give effect to such remaining portions of the Ordinance. Section 4. EFFECTIVE DATE. This ordinance shall take effect 30 days after its adoption. PASSED, APPROVED, AND ADOPTED by the City Council of the City of Temecula this day of , 2007. Chuck Washington, 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 Ordinance No. was duly introduced and placed upon its first reading at a meeting of the City Council of the City of Temecula on the day of , 2007, and that thereafter, said Ordinance was duly adopted by the City Council of the City of Temecula at a meeting thereof held on the day of , 2007, by the following vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: ABSTAIN: COUNCIL MEMBERS: Susan W. Jones, MMC City Clerk il '\. STAFF REPORT - PLANNING CITY OF TEMECULA PLANNING COMMISSION ORIGINAL TO: Planning Co.mmission FROM: Emery J. Papp, AICP, Senior Planner DATE: September 5,2007 SUBJECT: Proposed Noise Ordinance adding Chapter 9.2 to Title 17 of the Temecula Municipal Code BACKGROUND On April 12, 2005, the Temecula City Council adopted a comprehensive update of the Temecula General Plan. The General Plan includes a Noise Element which contains goals and policies aimed at reducing the impacts of ambient noise in the built environment. These goals and policies minimize noise impacts by setting maximum acceptable noise levels and requiring the community to maintain acceptable noise standards. However, the City has not adopted a nuisance Noise Ordinance, making it difficult for enforcement officials to cite individuals who create or contribute to nuisance noises. The number of nuisance noise complaints received by the City Council has grown each year. Furthermore, the City Council has received reports of threats and vandalism against citizens who have asked their neighbors to keep the noise down or have reported them to enforcement officials. These concerns prompted the City Council to direct staff to prepare a new Noise Ordinance that specifically addresses nuisance noises and enforcement. The City Council appointed a Noise Subcommittee consisting of Mayor Chuck Washington and Council Member Maryann Edwards to work with Planning, Code Enforcement and Police staff in the preparation of a new Noise Ordinance. The Noise Subcommittee met on January 24, 2007, April 3, 2007, and May 16,2007. The proposed Noise Ordinance was presented to the Planning Commission on June 6, 2007. The Planning Commission had several concerns with the proposed Noise Ordinance, including: . Whether or not there was a demonstrated need for a new Noise Ordinance . Inadequate backgroynd on City Council Subcommittee involvement and, in particular, the discussions with Police and Code Enforcement staff . The terms "unreasonable" and "loud and raucous" were not well defined leaving room for interpretation by enforcement officials . Enforcement of certain provisions too time consuming and unrealistic, e.g. waiting 30 to 60 minutes to view animal behavior . Whether or not government agencies should be exempt from these provisions G:IPlanningI2007lPA07-0157 Noise OrdinancelPlanninglPC STAFF REPORT 09-05-07.doc 1 . Exceptions from Noise Ordinance provisions should be better defined . Provisions of Ordinance should be compared to other cities . The process did not involve the Planning Commission In addition to the comments made by the Planning Commission, members of the public spoke against the provisions of the Ordinance citing: . The need for a time of day exception to play and practice live music, similar to construction hours . That a Noise Control Ordinance already exists The Planning Commission unanimously voted to continue the public hearing, directed staff to address the above concerns, and requested involvement in future discussions with the City Council Subcommittee. Staff worked with the City Attorney to revise the proposed Noise Ordinance and a City Council Subcommittee meeting was held on July 24,2007. This meeting also included a Planning Commission Noise Subcommittee consisting of Chairman Dennis Chiniaeff and Commissioner Ron Guerriero. The meeting was noticed as a Public Meeting. While a general consensus was reached regarding the need to adopt a new Noise Ordinance, additional issues brought up by members of the public who attended the meeting as still needing to be addressed included: . Inequities relating to governmental exemptions for civic events . Impact is greater on small lot development than larger lot development . Impact to band and individual practice of music . Violations constitute a misdemeanor Once again, staff worked with the City Attorney to revise the draft Noise Ordinance to address these concerns. On August 1, 2007, staff met with the Planning Commission Noise Subcommittee, Temecula PD and Code Enforcement to go over the proposed revisions. Some additional feedback was received and has been included in the draft Noise Ordinance. The following changes have been made to the draft Noise Ordinance since the June 6, 2007 Planning Commission hearing: . Section 9.20.020 B. A new definition for the term "Audible" has been added . Section 9.20.020 J. A new definition for the term "Power Tools or Equipment" has been added . Section 9.20.020 K. The definition for the term "Public Property" has been revised to include parking lots . Section 9.20.020 N. The definition for the term "Sound Amplifying Equipment" has been revised to include any musical instrument amplified by an electrical device . Section 9.20.030 Exemptions. City sponsored events on public or private property have been removed from the list of exemptions G:\Planning\2007IPA07-0157 Noise OrdinancelPlanninglPC STAFF REPORT 09-05-07.doc 2 . Section 9.20.060 A. Power Tools and Equipment. This section has been revised to be more concise and remove the distance requirement . Section 9.20.060 B. Audio Equipment. This section has been revised to be more concise and remove the distance requirement . Section 9.20.060 C.2. The definition for the term "loud and raucous" has been revised to be more clear and concise . Section 9.20.060 C.2. The definition for the term "unreasonable" has been expanded to be clearer Issues Considered but not Included in the draft Noise Ordinance 1. Deleting sections of the proposed Noise Ordinance (e.g. Keeping of Noisy Animals) because of perceived enforcement concerns was rejected because protecting citizens' rights to the quiet enjoyment of their property is deemed more important than impacts on enforcement officials. 2. The need for a time of day exception to play and practice live music was rejected because under the proposed standard, there is no time restriction provided the noise levels are within the levels identified in Table N-1 or Table N-2. A time of day standard would be more restrictive. 3. Impact is greater on small lot development than larger lot development. This concept was abandoned because under the current General Plan, noise traveling across property lines must be within certain limits, regardless of lot size. 4. Adoption of the draft Noise Ordinance will significantly impact band and individual ability to practice music. This concept was abandoned because under the proposed provisions live music may continue to be played at any hour of day or night. However, the volume of the music must be insulated, otherwise contained, or be within the decibel limits identified in Table N-1, Table N-2 at all times. 5. Violations of the proposed Noise Ordinance will constitute a misdemeanor. This is true. However, as identified in Section 9.20.080 D., nothing in the draft Noise Ordinance will prevent the City from engaging in efforts to obtain voluntary compliance. This provision is consistent with all other similar City Ordinances. LEGAL NOTICING REQUIREMENTS Notice of the public hearing was originally published in the Californian on May 26, 2007. A second Notice of Public Hearing was published on August 25, 2007 for this Agenda Item. ENVIRONMENTAL DETERMINATION Staff has determined that Ordinance No. 07- (Ordinance Regulating Noise) is exempt from the requirements of the California Environmental Quality Act ("CEQA") pursuant to Title 14 of the California Code of Regulations, Section 15061 (b)(3) because it can be seen with certainty that there is no possibility that the Ordinance will have a significant effect on the environment. The Ordinance will have no adverse G:IPlanningI2007IPA07.0157 Noise OrdinancelPlanninglPC STAFF REPORT 09.05.07.doc 3 environmental affects because it will reduce the public's exposure to loud ambient noise levels and nuisance noise. RECOMMENDATION Staff recommends that the Planning Commission adopt a Resolution recommending that the City Council approve an Amendment to Title 17 of the Temecula Municipal Code, adding Chapter 9.2 and establishing Citywide standards for regulating noise. ATTACHMENTS 1. PC Resolution No. 07-_ (Noise Ordinance) - Blue Page 5 Exhibit A - Proposed CC Ordinance No. 07- 2. June 6, 2007 Planning Commission Minutes - Blue Page 6 3. June 6, 2007 Planning Commission Staff Report - Blue Page 7 4. Public Correspondence - Blue Page 8 5. Notice of Public Hearing - Blue Page 9 G:IPlanningI2007\PA07-0157 Noise OrdinancelPlanninglPC STAFF REPORT 09.05.07.doc 4 ATTACHMENT 1 PC RESOLUTION 07-_ G:IPlanning\2007IPA07.0157 Noise OrdinancelPlanninglPC STAFF REPORT 09.05.07.doc 5 PC RESOLUTION NO. 07- A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF TEMECULA RECOMMENDING THAT THE CITY COUNCIL ADOPT AN ORDINANCE ENTITLED "AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TEMECULA ADDING CHAPTER 9.20 TO THE TEMECULA MUNICIPAL CODE ESTABLISHING CITYWIDE STANDARDS FOR REGULATING NOISE (PLANNING APPLICATION NO. PA07-0157)" Section 1. Procedural Findinas. The Planning Cornrnission of the City of Ternecula does hereby find, deterrnine and declare that: A. On June 6, 2007 the Planning Cornrnission identified a need to arnend the adopted Municipal Code to add a new Chapter to the Ternecula Municipal Code regarding the regulation of noise (Planning Application No. PA07-0157). B. The Ordinance was processed including, but not Iirnited to a public notice, in the time and manner prescribed by State and local law. C. The Planning Commission, at a regular meeting, considered the Application and environmental review on June 6, 2007, at a duly noticed public hearing as prescribed by law, at which time the City staff and interested persons had an opportunity to and did testify either in support or in opposition to this matter. D. At the conclusion of the June 6, 2007 Planning Commission hearing and after due consideration of the testimony, the Commission recommended a continuance of the item for staff to address issues brought forth during the hearing. E. The Planning Commission, at a regular meeting, considered the Application and environmental review on September 5, 2007, 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. F. At the conclusion of the Commission hearing and after due consideration of the testimony, the Commission recommended that the City Council approve Planning Application No. PA07-0157 subject.to and based upon the findings set forth hereunder. G. All legal preconditions to the adoption of this Resolution have occurred. Section 2. Further Findinas. The Planning Commission, in approving the Application hereby finds, determines and declares that: A. The proposed Ordinance is in conformance with the General Plan for Temecula and with all applicable requirements of State law and other ordinance of the City; G:IPlannlngI2007IPA07-0157 Noise OrdinancelPlanninglPC RESOLUTION 09.05-07.doC 1 The proposed Noise Ordinance conforms to the City of Temecula General Plan in that the criteria for establishing reasonable noise levels is identified in the City of Temecula General Plan Noise Element. Furthermore, the proposed Noise Ordinance directly responds to Goal 2, Policy 2.1 of the General Plan Noise Element and Goal 3, Policy 3. 1 of the General Plan Noise Element. B. The proposed Ordinance is consistent with the Municipal Code and Development Code for the City of Temecula; The proposed Noise Ordinance has been designed to be internally consistent with the Municipal Code and the Development Code in terms of referencing key components of the City's currently adopted Noise Control Ordinance, which applies to construction related noise, and enforcement issues. Section 3. Environmental Comoliance. In accordance with the California Environmental Quality Act, the proposed Ordinance No. 07-_ (Ordinance Regulating Noise) is exempt from the requirements of the California Environmental Quality Act ("CEQA") pursuant to Title 14 of the California Code of Regulations, Section 15061(b) (3) because it can be seen with certainty that there is no possibility that the Ordinance will have a significant effect on the environment. The Ordinance will have no adverse environmental affects because it will reduce the public's exposure to the harmful effects of loud ambient noise levels and nuisance noise. The Planning Commission, therefore, recommends that the City Council of the City of Temecula adopt a Notice of Exemption for the proposed ordinance. Section 4. Recommendation. The Planning Commission of the City of Temecula recommends that the City Council approve Planning Application No. PA07- 0157, a proposed Citywide Noise as set forth on Exhibit A, attached hereto, and incorporated herein by this reference. G:\Planning\2007\PA07-0157 Noise Ordinance\Planning\PC RESOLUTION 09-05-07.doc 2 Section 5. PASSED, APPROVED AND ADOPTED by the City of Temecula Planning Commission this 5th day of September, 2007. Dennis Chiniaeff, Chairman ATTEST: Debbie Ubnoske, Secretary [SEAL] STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss CITY OF TEMECULA ) I, Debbie Ubnoske, Secretary of the Temecula Planning Commission, do hereby certify that the forgoing PC Resolution No. 07-_ was duly and regularly adopted by the Planning Commission of the City of Temecula at a regular meeting thereof held on the 5th day of September 2007, by the following vote: AYES: PLANNING COMMISSIONERS: NOES: PLANNING COMMISSIONERS: ABSENT: PLANNING COMMISSIONERS: ABSTAIN: PLANNING COMMISSIONERS: Debbie Ubnoske, Secretary G:IPlanning\2007IPA07-0157 Noise OrdinancelPlanninglPC RESOLUTION 09.05.07.doc 3 EXHIBIT A PROPOSED CC ORDINANCE 07-_ G:IPlanning\2007IPA07-0157 Noise OrdlnancelPlanninglPC RESOLUTION 09.05.07.doc 4 ORDINANCE NO. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TEMECULA ADDING CHAPTER 9.20 TO THE TEMECULA MUNICIPAL CODE ESTABLISHING CITYWIDE STANDARDS FOR REGULATING NOISE THE CITY COUNCIL OF THE CITY OF TEMECULA DOES ORDAIN AS FOLLOWS: SECTION 1. Chapter 9.20 is hereby added to the Temecula Municipal Code to read as follows: "CHAPTER 9.20 NOISE 9.20.010 Intent. At certain levels, sound becomes noise and may jeopardize the health, safety or general welfare of City residents and degrade their quality of life. This Chapter is intended to establish citywide standards to regulate noise. This Chapter is not intended to establish thresholds of significance for the purpose of any analysis required by the California Environmental Quality Act. No such thresholds are hereby established. 9.20.020 Definitions. Whenever used in this Chapter, the following terms shall have the following meanings: A. Animal" means any bird, cat, dog, goat, horse, burro or donkey. B. "Audible" means capable of being heard by a person without the use or aid of an amplified hearing device. C. "Audio equipment" means a television, stereo, radio, tape player, compact disc player, MP3 player, i-Pod or other similar device. D. "City Manager" means the City Manager or his or her designee. E. "Decibel" means a unit (dB) for measuring the relative amplitude of a sound equal approximately to the smallest difference normally detectable by the human ear, the range of which includes approximately one hundred thirty (130) decibels on a scale beginning with zero decibels for the faintest detectable sound. Decibels are measured with a sound level meter using different methodologies as defined below: 1. A-weighting (dBA) means the standard A-weighted frequency response of a sound level meter, which de-emphasizes low and high frequencies of sound in a manner similar to the human ear for moderate sounds. 2. Community Noise Equivalent Level (CNEL) means a 24-hour energy equivalent level derived from a variety of single-noise events, with weighting factors of 5 and 10 dBA applied to the evening (7:00 p.m. to 10:00 p.m.) and nighttime (10 PM to 7 AM) periods, respectively, to allow for the greater sensitivity to noise during these hours. 3. Ldn means Day-Night Average Sound Level. The A-weighted average sound level for a given area (measured in decibels) during a 24-hour period with a 10 dB weighting applied to night-time sound levels. The Ldn is approximately numerically equal to the CNEL for most environmental settings. 4. Maximum Sound level (Lmax) means the maximum sound level measured on a sound level meter. F. "Governmental agency" means the United States, the State of California, the County of Riverside, the City of Temecula, or any combination of these agencies. G. "Motor vehicle" means a vehicle that is self-propelled. H. "Noise" means any loud, discordant, raucous or disagreeable sound. I. "Occupied property" means any property upon which is located a residence, business or industrial or manufacturing use. J. "Power tools or equipment" means any mechanical, electrical or pneumatic device used to perform or facilitate manual or mechanical work. K. "Public Property" means property owned by a governmental agency or held open to the public, including, but not limited to, parks, streets, sidewalks, parking lots and alleys. L. "Public or Private School" means an institution conducting academic instruction at the preschool, elementary school, junior high school, high school, or college level. M. "Sensitive Receptor" means a land. use that is identified as sensitive to noise in the Noise Element of the Riverside County General Plan and the Noise Element of the Temecula General Plan, including, but not limited to, residences, schools, hospitals, churches, rest homes, cemeteries or public libraries. N. "Sound Amplifying Equipment" means a loudspeaker, microphone, megaphone, stereo equipment, portable radio, boom box, any musical instrument amplified by an electrical device, or other similar device. O. "Sound Level Meter" means an instrument meeting the standards of the American National Standards Institute for Type 1 or Type 2 sound level meters or an instrument that provides equivalent data. 2 9.20.030 Exemptions. Sound emanating from the following sources is exempt from the provisions of this Chapter: A. Facilities owned or operated by or for a governmental agency. B. Capital improvement projects of a governmental agency. C. The maintenance or repair of public properties. D. Public safety personnel in the course of executing their official duties, including, but not limited to, sworn peace officers, emergency personnel and public utility personnel. This exemption includes, without limitation, sound emanating from all equipment used by such personnel, whether stationary or mobile. E. Public or private schools and school-sponsored activities. F. Property maintenance, including, but not limited to, the operation of lawnmowers, leaf blowers, etc., provided such maintenance occurs between the hours of 7:00 a.m. and 8:00 p.m. G. Motor vehicles, other than off-highway vehicles. This exemption does not include sound emanating from motor vehicle sound systems. H. Heating and air conditioning equipment. I. Safety, warning and alarm devices, including, but not limited to, house and car alarms, and other warning devices that are designed to protect the public health, safety, and welfare. J. The discharge of firearms consistent with all State laws. 9.20.040 General Sound Level Standards. No person shall create any sound, or allow the creation of any sound, on any property that causes the exterior sound level on any other occupied property to exceed the sound level standards set forth in Tables N-1 and N-2. 3 TABLE N-l TEMECULA LAND USElNOISESTANDARDS Property Receiving Noise Type of Use Residential Commercial and Office Light Industrial Public/Institutional Open Space . Land Use Designation Hillside Rural Very Low Low Low Medium I Medium I High Neighborhood Community Highway Tourist Service I Professional Office Industrial Park Schools I All others I Vineyards/Agriculture I Open Space Maximum Noise Level (Ldn or CNEL, dBA) Interior Exterior' 45 65 45 45 65 / 701 701 70 50 55 50 50 70 75 65 70 70 70 /652 1 Maximum exterior noise levels up to 70 dB CNEL are allowed for Multiple-Family Housing. 2 Where quiet is a basis required for the land use. 3 Regarding aircraft. related noise, the maximum acceptable exposure for new residential development is 60 dB CNEL. 4 55 60 ~~~...... I I ~ W///////A I I Schools, Libraries, Churches, I~I~I i i i i i i i i::: :::::::::::::: I I Hospitals,NursingHomes I ...T........... ~~ 1'lllllllddlJ tmlli.... .11........... !F......... H-t-tt-H-. . . . . r " . . ,,-1+: " r" . . . . .. . : : ~~~~ ll~I~~~ ~~.~ Golf Course, Riding Stables, ~ Water Recreation, Cemeteries I . I _ Office Buildings, Business ~~~ r- Corrunercial, and Professional I I I r. : . . : . .+H-J . . +Hi. . I Industrial, Manufacturing, ~~~~ ~' 11.1. II :IIIIIIII~........~, Utilities, Agriculture 1- ~~ Source: Modified from 1998 State of California General Plan Guidelines. 1. Regarding aircraft-related noise, the maximum acceptable exposure for new residential development is 60dB CNEL. 2. No_ normally acceptable condition is defined for these uses. Noise studies are required prior to approval. Land Use Residential! Transient Lodging ~ Mote~ Hotel Auditoriums, Concert Halls, Amphitheaters' Sports Arena, Outdoor Spectator Sports' Playgrounds, Parks TABLE N-2 NolSElLAND USE COMPATIBILITY MATR.IX Community Noise Exposure (Ldn or CNEL) 65 70 ..I.::::::::~ I Ii ................... ...... I +.. ...... 75 80 ........................ ......................... ........................ ......................... ...................... ~ ~ Normally Acceptable: Specified land use is satisfactory, based upon the asswnption that. any buildings involved ~. meet conventional Title 24 construction standards. No special noise insulation requirements. ~ Conditionally Acceptable: New construction or development shall be undertaken only after a detailed noise Il:I:a:tI;W analysis is made and noise reduction measures are identified and included in the project design. ~ N onnally Unacceptable: N. ew construction or development is discouraged. If new construction is proposed, a ~ detailed analysis is required, noise reduction measures must be identified, and noise insulation features included in the design. . Clearly Unacceptable: New construction or development clearly should not be undertaken. 5 9.20.050 Sound Level Measurement Methodology. The actual location of a sound level measurement shall be at the discretion of the enforcement officials identified in Section 9.20.080 of this Chapter. Sound level measurements shall be made with a sound level meter. Immediately before a measurement is made, the sound level meter shall be calibrated utilizing an acoustical calibrator meeting the standards of the American National Standards Institute. Following a sound level measurement, the calibration of the sound level meter shall be re-verified. Sound level meters and calibration equipment shall be certified annually. 9.20.060 Special Sound Sources Standards. The general sound level standards set forth in Section 9.20.040 of this Chapter apply to sound emanating from all sources, including the following special sound sources, and the person creating or allowing the creation of the sound is subject to the requirements of that section. The following special sound sources are also subject to the following additional standards. Failure to comply will constitute separate violations of this ordinance. A. Power Tools and Equipment. No person shall operate any power tools or equipment between the hours of 10:00 p.m. and 7:00 a.m. such that the power tools or equipment are audible to a person located inside an occupied building. B. Audio Equipment. No person shall operate any audio equipment as described in 9.20.020(B), whether portable or not, between the hours of 10:00 p.m. and 7:00 a.m. such that the equipment is audible to a person located inside an occupied building. C. Sound Amplifying Equipment or Live Music. 1. It is unlawful for any person to cause, allow or permit the emission or transmission of any loud and raucous noise from any sound-making, sound- amplifying device or live music under his control or in his possession: a. Upon any private property; b. Upon any public street, alley, sidewalk or thoroughfare; or c. In or upon any public park or other public place or property. 2. The words "loud and raucous noise," as used in this section, shall mean any sound having such intensity or carrying power as to unreasonably interfere with the peace and quiet of other persons, or as to unreasonably annoy, disturb, impair or endanger the comfort, repose, health or safety of other persons. 3. The determination of whether a sound is "unreasonable," as used in paragraph 2 of subsection C of this section, shall involve the consideration of the level of noise, duration of noise, constancy or intermittency of noise, time of day or night, place, proximity to sensitive receptors, nature and circumstances of the emission or transmission of any such loud and raucous noise. 6 D. Construction. No person shall engage in or conduct construction activity, when the construction site is within one-quarter mile of an occupied residence, between the hours of 6:30 p.m. and 6:30 a.m., Monday through Friday, and shall only engage in or conduct construction activity between the hours of 7:00 a.m. and 6:30 p.m. on Saturday. Further, no construction activity shall be undertaken on Sunday and nationally recognized holidays. Public works projects of any federal, state or local entity or emergency work by public utilities are exempt from the provisions of this subsection D. Residents working on their homes or property are exempt from the prohibition of construction activities on Sundays and holidays but must comply with the hourly restrictions set forth for Saturday when working on Sundays and holidays. The city council may, by formal action, exempt projects from the provisions of this chapter. E. Barking Dogs and Keeping of Noisy Animals. 1. Noisy Animal means any animal that barks, bays, cries, whines, howls, screeches or makes any noise for an extended period of time whether day or night, regardless of whether the animal is physically situated in or upon private property. Such extended period of time shall consist of the above described incessant noise for thirty (30) minutes or more in any twenty-four-hour period, or intermittent noise for sixty (60) minutes or more during any twenty-four-hour period. An animal shall not be deemed a "nuisance animal" for purposes of this article if, at any time the animal is making noise due to a person or other animal that is trespassing or threatening to trespass upon private property in or upon which the animal is situated, or when the animal is being teased or provoked. 2. Evidence of said "incessant noise" shall be made by direct observation of an enforcement official present on site responding to a complaint from a neighbor, or a complaint form may be signed by a minimum of two neighboring property owners and submitted to an enforcement official. 3. Nothing in this chapter shall establish standards for private civil claims, in either civil court or small claims court, nor shall this chapter preclude any person from pursuing a private civil action in either civil or small claims court. 9.20.070 Exceptions. Exceptions may be requested from the standards set forth in Sections 9.20.040 (General Sound Standards) or 9.20.060 (Special Sound Sources Standards) of this Chapter and may be characterized as construction-related or single event exceptions. A. Application and Processing. 1. Construction-Related Exceptions. An application for a Construction Related Exception shall be made on a Minor Exception form provided by the Building and Safety Department and shall be accompanied by the appropriate filing fee. No public hearing is required. 7 2. Temporary Use Permit. An application for a Single Event Exception shall be made using the Temporary Use Permit application provided by the Planning Department and shall be accompanied by the appropriate filing fee. No public hearing is required. B. Requirements for Approval. The Director of Planning or his or her designee shall not approve a Minor Exception Application or Temporary Use Permit unless the applicant demonstrates that the activities described in the application would not be detrimental to the health, safety or general welfare of the community. In determining whether activities are detrimental to the health, safety or general welfare of the community, the Director of Planning or his or her designee shall consider such factors as the proposed duration of the activities and their location in relation to sensitive receptors. If a Minor Exception Application or a Temporary Use Permit is approved, reasonable conditions may be imposed to minimize the public detriment, including, but not limited to, restrictions on sound level, sound duration and operating hours. C. Appeals. 1. Construction-Related Exception. Any person aggrieved by or dissatisfied with the Planning Director's decision on an application for a Construction- Related Exception may appeal from such action by filing an appeal according to the procedures setforth in Section 17.03.090 of the Temecula Municipal Code. 2. Temporary Use Permit. Any person aggrieved by or dissatisfied with the Planning Director's decision on an application for a Temporary Use Permit may appeal from such action within fifteen (15) calendar days of the action by filing an appeal according to the procedures set forth in Section 17.03.090 of the Temecula Municipal Code. 9.20.080 Enforcement. A. The City Manager and his or her designee, including but not limited to police officers, code enforcement officers, park rangers or other enforcement officials shall have the authority to enforce the provisions of this Chapter. B. Any person who violates any provision of this Chapter is guilty of a misdemeanor, and upon conviction shall be punished as set forth in Chapter 1.20 of the Temecula Municipal Code. C. Any person who violates any provision of this Chapter shall be subject to the enforcement remedies of Chapters 1.21 and 1.24 of the Temecula Municipal Code. D. Nothing in this Chapter shall be intended to limit any of the civil or criminal remedies available to the City, nor shall it be intended to limit the City from engaging in 8 efforts to obtain voluntary compliance by means of warnings, notices, administrative citations or educational programs. 9.20.090 Duty to Cooperate. No person shall refuse to cooperate with, or obstruct, the enforcement officials identified in Section 9.20.080 of this Chapter when they are engaged in the process of enforcing the provisions of this Chapter. This duty to cooperate may require a person to extinguish a sound source so that it can be determined whether sound emanating from the source violates the provisions of this Chapter. SECTION 2. PRIOR ORDINANCE. The provisions of Chapter 9.20 shall supersede the provisions of any ordinances in conflict therewith adopted by reference in Chapter 1.08 of the Temecula Municipal Code. SECTION 3. SEVERABILITY. If any portion, provision, section, paragraph, sentence, or word of this Ordinance is rendered or declared to be invalid by any final court action in a court of competent jurisdiction, or by reason of any preemptive legislation, the remaining portions, provisions, sections, paragraphs, sentences, and words of this Ordinance shall remain in full force and effect and shall be interpreted by the court so as to give effect to such remaining portions of the Ordinance. SECTION 4. EFFECTIVE DATE. This ordinance shall take effect thirty (30) days after its adoption. 9 PASSED, APPROVED, AND ADOPTED by the City Council of the City of Temecula this day of , 2007. Chuck Washington, Mayor ATTEST: Susan W. Jones, MMC City Clerk [SEAL] STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss CITY OF TEMECWLA ) I, Susan W. Jones, MMC, City Clerk of the City of Temecula, do hereby certify that the foregoing Ordinance No. was duly introduced and placed upon its first reading at a meeting of the City Council of the City of Temecula on the day of ,2007, and that thereafter, said Ordinance was duly adopted by the City Council of the City of Temecula at a meeting thereof held on the day of ,2007, by the following vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: ABSTAIN: COUNCIL MEMBERS: Susan W. Jones, MMC City Clerk 10 ATTACHMENT NO.2 JUNE 6, 2007 PLANNING COMMISSION MINUTES G:IPlannlngI2007IPA07'0157 Noise OrdinancelPlannlnglPC STAFF REPORT 09-05-07.doc 6 MINUTES OF A REGULAR MEETING OF THE CITY OF TEMECULA PLANNING COMMISSION JUNE 6, 2007 CALL TO ORDER The City of Temecula Planning Commission convened in a regular meeting at 6:00 p.m., on Wednesday, June 6, 2007, in the City Council Chambers of Temecula City Hall, 43200 Business Park Drive, Temecula, California. ALLEGIANCE Chairman Chiniaeff led the audience in the Flag salute. ROLL CALL Present: Commissioners: Carey, Guerriero, Harter, Telesio, and Chairman Chiniaeff. Absent: None. PUBLIC COMMENTS No comments. CONSENT CALENDAR 1 Minutes RECOMMENDATION: 1.1 Approve the Minutes of May 16, 2007. MOTION: Commissioner Guerriero moved to approve the Consent Calendar. Commissioner Harter seconded the motion and voice vote reflected unanimous aDDroval. PUBLIC HEARING ITEMS 2 Plannina Aoolication No. PA06-0026. a Conditional Use Permit. submitted by Randi Newton reoresentinq Soectrum Surveving. to construct a 70-foot tall T-Mobile wireless telecommunication facilitv desiqned as a broad leaf tree within a 676 SQuare foot enclosure, located at 42010 Moraaa Road. adiacent to the northwest corner of Rancho California and Moraaa Roads By way of PowerPoint presentation, Associate Planner Damko highlighted on the following: o Location o Elevations RIMinulesPCI060607 o Coverage o Environmental Determination. Associate Planner Damko requested that Condition of Approval No. 15 be deleted and that a Public Works Condition be added imposing that a encroachment permit be required for the project; and advised that the applicant would be in agreement of both the deletion of No. 15 and the added Public Works Condition of Approval. At this time, the public hearing was opened. Ms. Randi Newton, representing Spectrum Surveying, noted that she would be available for any questions. At this time, the public hearing was closed. MOTION: Commissioner Guerriero moved to approve staff recommendation subject to the deletion of Condition of Approval No. 15 and the added Public Works Encroachment Permit Condition. Commissioner Telesio seconded the motion and voice vote reflected unanimous accroval. PC RESOLUTION NO. 07-20 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF TEMECULA APPROVING PLANNING APPLICATION NO. PA06-0026, A CONDITIONAL USE PERMIT TO CONSTRUCT A 70 FOOT TALL WIRELESS TELECOMMUNICATION FACILITY WITHIN A 676 SQUARE FOOT ENCLOSURE TO BE LOCATED AT ORCHARD CHRISTIAN FELLOWSHIP CHURCH AT 42010 MORAGA ROAD ADJACENT TO THE NORTH WEST CORN~R OF RANCHO CALIFORNIA AND MORAGA ROADS (APN: 921-310- 004) 3 Plannina A[)clication Nos. PA06-0187 and PA07-0049. a Develocment Plan. submitted bv Walt Allen Architects. to reolace an existin,o cluster of modular buildinos with a three-sto.rv. 14"093 sauare foot commercial office buildina and a 7.369 sauare foot underqround c.arkina lltructure an a 0.53 acre site. and a Minar Exceotion to allow for a 15 oercent buildina heiaht increase. located at 27423 Ynez Road Associate Planner Schuma provided a PowerPoint presentation, focusing on the following: o Project Description o Site Plan o Elevations o Architecture - South and East o Landscaping o Exceptional Architecture Design - for increased FAR o Underground Parking R:\MinutesPC\060607 2 Staff requested the deletion of Condition of Approval 93b replacing with the standard condition of Mt. Palomar Ordinance in its replacement; amend Condition of Approval 79a to improve the sidewalk from the southerly boundary of Parcel 2 to the northerly boundary of Parcel 1 ; and that a condition be added to require that the amendment to the Tower Plaza sign program be reviewed and approved by the Planning Commission. Associate Planner Schuma noted the following: o That the aluminum accents on the proposed project would provide lighting opportunities and energy efficiency o That the bright accent (orange/red) tone would conform to the modern architecture of the building o That the target Floor Area Ratio (FAR) would be 30 percent and that the project would propose a net Floor Area Ratio (FAR) of 61 percent. At this time, the public hearing was opened. Mr. Walt Allen, representing Walt Allen Architect, noted the following: o That the applicant worked diligently to add as much as he could on the proposed site, noting that the proposed project would be an exemplary example of where architecture is headed; and that the proposed building would be setting a standard of redevelopment for the center o That the applicant would be in agreement of the amendment to Condition of Approval No. 79a as stated above by staff. At this time, the public hearing was closed. Commissioner Carey noted that although he would be in favor of the proposed project, he would not be desirous of the red/orange accent on the building. Echoing Commissioner Carey's comments, Commissioner Harter relayed his enthusiasm with the outstanding architecture of the project but would not be in favor of the red/orange accent on the building and would request that the redlorange color be toned down. Appreciating the implementation of the Leadership in Energy and Environmental Design (LEED), impervious concrete and outstanding architecture, Commissioner Guerriero relayed that he would not have an opinion one way or the other regarding the redlorange accent. Noting that he would be in favor of the proposed project, Commissioner Telesio stated that he, as well, would not be in favor of the red/orange accents on the building. Having raised the issue of increased FAR at previOUS Planning Commission meetings, Commissioner Chiniaeff relayed that it would be his opinion that the Planning Commission has not yet approved an FAR that would meet the desired goal of 30 percent in the last couple of years; that the Planning Commission would need to have a specific standards that an applicant would need in order to receive an increase in FAR. R:\MinulesPC1060607 3 Commissioner Chiniaeff also relayed that if the Planning Commission approves staff's recommendation, it would be important to ensure that the remainder of the center conform to the same type of architecture and design of the proposed project. Commissioner Chiniaeff also stated that he would be in favor of the proposed project and would not have a concern with the red/orange accents. Echoing Commissioner Chiniaeffs comment with regard to requiring that the center conform to the design and architecture of the proposed project, Assistant City Manager Johnson relayed that if the project is approved, standards could be implemented to ensure that continuity is met. Commissioner Telesio agreed that guidelines for increased Floor Area Ratio (FAR) would be desired and helpful not only for the Planning Commission but for staff. For the Planning Commission, Assistant City Manager Johnson relayed that a workshop could be scheduled pertaining to requests for increased Floor Area Ratio and requirements that would need to be met. Concurring that a workshop would be needed, Commissioner Guerriero stated that the City's Design Guidelines require that applicants provide Green or other forms of energy but that this has not been enforced by staff or the Planning Commission. Assistant City Manager Johnson relayed that specific standards could be created by the Planning Commission and staff. Chairman Chiniaeff noted that the price of leaseable land would be high enough to warrant the construction of underground parking and parking structures. For the Planning Commission, Assistant City Attorney Curley relayed that that one vote pertaining to the project be required. For clarification purposes, the public hearing was reopened. Mr. Walt Allen relayed that he would be willing to tone down the redlorange accent color to a terra cotta color. At this time, the public hearing was closed. MOTION: Commissioner Guerriero moved to approve staff recommendation subject to the amended Conditions of Approval as requested by staff; and that the red/orange accents be toned down to a terra cotta color. Commissioner Harter seconded the motion and voice vote reflected unanimous aooroval. R:\MinutesPC\060607 4 PC RESOLUTION NO. 07-21 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF TEMECULA APPROVING PLANNING APPLICATION NOS. PA06-0187 AND PA07-004, A DEVELOPMENT PLAN TO REPLACE AN EXISTING CLUSTER OF MODULAR BUILDINGS WITH A FOUR-STORY, 26,941 SQUARE-FOOT COMMERCIAL OFFICE BUILDING ON 0.53 ACRES LOCATED AT 27423 YNEZ ROAD, AND A MINOR EXCEPTION TO ALLOW FOR A 15 PERCENT BUILDING HEIGHT INCREASE 4 Plannino Apolication No. PA01-0157. a Resolution of the Plan nino Commission recommendino that the Citv Council adoot an Ordinance adding chaqter 9.20 to the Temecula Municioal Code establishino Citvwide standards for reoulatino noise By way of PowerPoint Presentation, Senior Planner Papp highlighted on the following: o Background o Power Tools and Equipment o Audio Equipment o Sound Amplifying Equipment or Live Music o Construction o Barking Dogs and Keeping of Noisy Animals o Enforcement o Public Comments o Environmental Determination. In response to the questions by the Planning Commission, Senior Planner Papp relayed the following: o That the hours of operation for construction could be changed in the Ordinance to 6:30 p.m. to 7:00 p.m. o That any City sponsored event or co-sponsored event would be requesting a Temporary Use Permit (TUP); and therefore, would be exempt. Commissioner Guerriero expressed concern with creating Noise Ordinances and regulations for enforcement when State Law would already be in place to cover these types of issues and/or concerns. Director of Planning Ubnoske advised that representatives from the Police Department had sat in on all meetings regarding the proposed Ordinances and would be comfortable with the proposed Ordinance as written. Further clarifying, Assistant City Attorney Curley relayed that the courts have approved local agencies adopting Noise Ordinances, and that the Ordinance would be furthering tools rather than duplicative. Commissioner Telesio expressed concem with the ability to carry out enforcement beyond what State Code would allow. R:\MinutesPC\060607 5 Assistant City Manager Johnson noted that the proposed Ordinance would be modeled after the County's Ordinance. Commissioner Guerriero expressed concern with information being discussed between staff and police that is not being included in staff's report; and that the Commission would have difficulty making decisions without the proper information. In response to Commissioner Carey's query, Senior Planner Papp relayed that Audio Equipment and Sound Amplifying Equipment or Live Music hours would be from the 10:00 p.m. to 8:00 a.m. and/or anytime if determined unreasonable; and that it would be his understanding that events in Old Town would require a Temporary Use Permit (TUP). Commissioner Carey relayed that it would be his opinion that the proposed Ordinance will be difficult to enforce. Relaying that he would be in favor of the proposed Noise Ordinance, Commissioner Harter expressed concern with the following: o That two different Code Enforcement Officers could have two different standards of the meaning "Loud and Raucous' o That the language in the proposed Noise Ordinance would need to be more concise o That it would not be reasonable for a Code Enforcement Officer to sit 30 to 60 minutes to determine whether or not an animal is making incessant noise. In response to Commissioner Harter, Senior Planner Papp relayed that his concerns were discussed at City Council subcommittee meetings; and that although at times it may be unrealistic to expect a Code Enforcement Officer to sit and observe 60 minutes or more, the Enforcement Officer would be a signer of a complaint along with the complainant. Relaying his amazement with this item coming before the Commission at this time, Chairman Chiniaeff stated the following: o Queried if all the stakeholders were involved in the subcommittee meetings o That he would have a concern with the inequities that would be built into the proposed Noise Ordinance o That there may be individuals opposed to an in fill project being built where a map would be required o That he would have difficulty understanding why a City sponsored event would not be subject to a CEQA review o That the City has adopted its own noise elements in its General Plan and queried why would the City include the County's General Plan o That if a homeowner is restricted to using Power Tools and Equipment during specific hours then a Homeowners Association should be restricted to the same hours as a homeowner o That Section 9.20.070 - Exceptions. That this Section would be arbitrary and would be of the opinion that standards should be set for defining what the Exceptions would be o That the language "Peace and Quiet" under "Loud and Raucous" be defined and how would it be applied to everyone in the same manner. R:\Mlnut..PC\060607 6 Assistant City Attorney Curley advised that there would be two sets of standards that the Commission would be considering, noting the following: o That Section 9.20.040 General Sound Level Standards - would be fairly consistent with State-wide Ordinances o That Section 9.20.060 Soecial Sound Sources Standard~ - that these would be perceived as providing unique impacts and would need to be refined beyond the general rules. Chairman Chiniaeff relayed that he would request that staff compare its requests with other communities to ensure that they would be typical and consistent with the City of Temecula's general standards. At this time, the public hearing was opened. Mr. P. T. Rothschild, Murrieta, spoke against the proposed Noise Ordinance, noting that there would currently be a Noise Ordinance in place and would not see the need for another one; and would request that the Commission add time limits to band practices that would be consistent with surrounding communities general standards. Mr. Paul Bahu, Temecula, expressed his concern with the proposed Noise Ordinance. At this time, the public hearing was closed. Chairman Chiniaeff requested that this item be continued to allow staff an opportunity to address concerns expressed by the Planning Commission. MOTION: Chairman Chiniaeff moved to continue Item NO.4 to Wednesday, August 1, 2007. Commissioner Guerriero seconded the motion and voice vote reflected unanimous aDDroval. COMMISSIONERS' REPORTS Commissioner Carey commented on the Home Depot on SR79 South, relaying that the aesthetics of the parking has greatly improved. Commissioner Telesio thanked staff for their efforts with regard to the Marie Callender's and that the color is improved; but did relay concern with the signage/monument at Pechanga Parkway and 79 South as well as the unappealing utility sign on the median. In response to Commissioner Telesio's comment, Director of Planning Ubnoske relayed that she explore his concerns. Commissioner Telesio adjoumed the Planning Commission meeting in remembrance of Operation Overlord, 63 years ago today. R:\MinutesP~\Q60607 7 PLANNING DIRECTOR'S REPORT Assistant City Manager Johnson relayed that if the Planning Commission had a desire, he could request from Council that two Commissioners of the Planning Commission be included in the Infrastructure Beautification Committee meetings. For Assistant City Manager Johnson, Chairman Chiniaeff relayed that the Commission would be in interested in partaking in the Infrastructure Beautification meetings. ADJOURNMENT At 7:30 pm, Chairman Chiniaeff formally adjourned to June 20. 2007 at 6:00 p.m., in the City Council Chambers, 43200 Business Park Drive, Temecula. ~ ""', nnis Chiniaeff Chairman 7J~r' ~~~ Debbie Ubnoske Director of Planning R:\MinutesPCI060607 8 ATTACHMENT NO.3 JUNE 6, 2007 PLANNING COMMISSION STAFF REPORT G:IPlannlngI2007IPA07-0157 Noise OrdinancelPlannlnglPC STAFF REPORT 09-05-07.doc 7 STAFF REPORT - PLANNING CITY OF TEMECULA PLANNING COMMISSION TO: Planning Commission FROM: Emery J. Papp, AICP, Senior Planner DATE: June 6, 2007 SUBJECT: Proposed Noise Ordinance adding Chapter 9.2 to Title 17 of the Temecula Municipal Code BACKGROUND On April 12, 2005, the Temecula City Council adopted a comprehensive update of the Temecula General Plan. The General Plan includes a Noise Element which contains goals and policies aimed at reducing the impacts of ambient noise in the built environment. These goals and policies minimize noise impacts by setting maximum acceptable noise levels and requiring the community to maintain acceptable noise standards. However. because the City has not yet formally adopted a Noise Ordinance, it has been difficult for enforcement officials to cite individuals who create or contribute to nuisance noises. The proposed Noise Ordinance addresses two of the four goals identified in the Noise Element of the General Plan and one policy for implementing each goal as follows: 90al 2 - Minimize transfer of noise imoacts between adiacent land uses: Policy 2.1 - Limit the maximum permitted noise levels crossing property lines and impacting adjacent land uses; and Goal 3 - Minimize the imoact of noise levels throuohout the communitv throuah land use plannina; Policy 3.1 - Enforce and maintain acceptable noise limit standards. JUSTIFICATION At certain levels. sound becomes noise and may jeopardize the health, safety or general welfare of City residents and degrade their quality of life. This proposed Noise Ordinance identifies general sound level standards. methodology for measuring sound levels, enforcement, and exemptions. The proposed Noise Ordinance identifies five key types of nuisance noise that can be regulated and enforced under this Chapter of the Municipal Code. These include: Power Tools and Eauiprnent - Power tools and equiprnent shall not be used between the hours of 10:00 p.m. and 8:00 a.m. if they are audible to a person within another occupied building. Similarly, power tools shall not be used at any time if audible to a person at a distance greater than 100 feet away. Audio Eouioment - Audio equipment shall not be used between the hours of 10:00 p.m. and 8:00 a.m. if they are audible to a person within another occupied building. Similarly, portable or stationary audible equipment shall not be used at any time if audible to a person at a distance greater than 100 feet away. Sound Amolifvino Eouioment or Live Music - "Loud and raucous" noise emanating from any sound-making device, sound-amplifying device or live music is unlawful on public and private property. Loud and raucous means 'unreasonably" (defined in Ordinance) interfering with the peace and quiet of other persons, or to unreasonably annoy or endanger the comfort, health or safety of other persons. Construction - In accordance with the City's existing Noise Control Ordinance regarding construction noise, construction activity shall not occur between the hours of 6:30 p.m. and 6:30 a.m. when within one-quarter mile of a residence. No work shall commence on Sundays, with the exception of residents working on their homes or property. Barkinp Dops and Keeoino of Noisv Animals - The provisions of this section make it unlawful for property owners to allow their animals to be incessantly noisy whether the owner of the property is present or not. Unacceptable periods of tirne are defined as incessant noise for thirty (30) minutes or more within any twenty-four hour period, or intermittent noise for sixty (60) minutes or more within any twenty-four hour period. Observation of the offending behavior can be directly observed by a City enforcement official, or by a minimum of two neighboring property owners who sign a written complaint. Enforcement - City enforcement officials shall have the authority to issue verbal warnings or written citations based on their own observations or in response to citizen complaints. Any person who violates the provisions of the proposed Noise Ordinance would be subject to punishment as set forth in Chapter 1.20 and subject to enforcement remedies as set forth in Sections 1.21 and 1.24 of the Temecula Municipal Code. LEGAL NOTICING REQUIREMENTS Notice of the public hearing was published in the Californian on May 26, 2007 and mailed to the property owners within the required 600-foot radius. ENVIRONMENTAL DETERMINATION Staff has determined that Ordinance No. 07-_ (Ordinance Regulating Noise) is exempt from the requirements of the California Environmental Quality Act ("CEQA") pursuant to Title 14 of the California Code of Regulations, Section 15061 (b )(3) because it can be seen with certainty that there is no possibility that the Ordinance will have a significant effect on the environment. The Ordinance will have no adverse environmental affects because it will reduce the public's exposure to loud ambient noise levels and nuisance noise. RECOMMENDATION Staff recommends that the Planning Commission adopt a Resolution recommending that the City Council approve an Amendment to Title 17 of the Temecula Municipal Code, adding Chapter 9.2 and establishing Citywide standards for regulating noise. ATTACHMENTS 1. PC Resolution No. 07-_ (Noise Ordinance) - Blue Page 4 Exhibit A - Proposed CC Ordinance No. 07- 2. Notice of Public Hearing - Blue Page 5 ATTACHMENT 1 PC RESOLUTION 07-_ PC RESOLUTION NO. 07- .A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF TEMECULA RECOMMENDING THAT THE CITY COUNCIL ADOPT AN ORDINANCE ENTITLED "AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TEMECULA ADDING CHAPTER 9.20 TO THE TEMECULA MUNICIPAL CODE ESTABLISHING CITYWIDE STANDARDS FOR REGULATING NOISE (PLANNING APPLICATION NO. PA07-0357)" Section 1. Procedural Findinas. The Planning Commission of the City of Temecula does hereby find, determine and declare that: A. On June 6, 2007 the Planning Commission identified a need to amend the adopted Municipal Code to add a new Chapter to the Temecula Municipal Code regarding the regulation of noise (Planning Application No. PA07-0157). B. The Ordinance 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 the Application and environmental review on June 6, 2007, at a duly noticed public hearing as prescribed by law, at which time the City staff and interested persons had an opportunity to and did testify either in support or in opposition to this matter. D. At the conclusion of the Commission hearing and after due consideration of the testimony, the Commission recommended that the City Council approve Planning Application No. PA07-0157 subject to and based upon the findings set forth hereunder. E. All legal preconditions to the adoption of this Resolution have occurred. Section 2. Further Findinas. The Planning Commission, in approving the Application hereby finds, determines and declares that: A. The proposed Ordinance is in conformance with the General Plan for Temecula and with all applicable requirements of State law and other ordinance of the City; The proposed Noise Ordinance conforms to the City of Temecula General Plan in that the criteria for establishing reasonable noise levels is identified in the City of Temecula General Plan Noise Element. Furthermore, the proposed Noise Ordinance directly responds to Goal 2, Policy 2.1 of the General Plan Noise Element and Goal 3, Policy 3.1 of the General Plan Noise Element. B. The proposed Ordinance is consistent with the Municipal Code and Development Code for the City of Temecula; G:\Planning\2007\P A07-0 I 57 Noise Ordinance\Planning\PC RESOLUTION.doc I The proposed Noise Ordinance has been designed to be internally consistent with the Municipal Code and the Development Code in terms of referencing key components of the City's currently adopted Noise Control Ordinance, which applies to construction related noise, and enforcement issues. Section 3. Environmental Comoliance. In accordance with the California Environmental Quality Act, the proposed Ordinance No. 07-_ (Ordinance Regulating Noise) is exempt from the requirements of the California Environmental Quality Act ("CEOA") pursuant to Title 14 of the California Code of RegUlations, Section 15061(b) (3) because it can be seen with certainty that there is no possibility that the Ordinance will have a significant effect on the environment. The Ordinance will have no adverse environmental affects because it will reduce the public's exposure to the harmful effects of loud ambient noise levels and nuisance noise. The Planning Commission, therefore, recommends that the City Council of the City of Temecula adopt a Notice of Exemption for the proposed ordinance. Section 4. Recommendation. The Planning Commission of the City of Temecula recommends that the City Council approve Planning Application No. PA07- 0157, a proposed City-wide Noise as set forth on Exhibit A, attached hereto, and incorporated herein by this reference G:\Planning\2007\P A07-0 157 Noise Ordinance\Planning\PC RESOLUTION.doc 2 Section 5. PASSED, APPROVED AND ADOPTED by the City of Temecula Planning Commission this 6th day of June, 2007. Dennis Chiniaeff, Chairman ATTEST: Debbie Ubnoske, Secretary [SEAL] STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss CITY OF TEMECULA ) I, Debbie Ubnoske, Secretary of the Temecula Planning Commission, do hereby certify that the forgoing PC Resolution No. 07-_ was duly and regularly adopted by the Planning Commission of the City of Temecula at a regular meeting thereof held on the 6th day of June 2007, by the following vote: AYES: PLANNING COMMISSIONERS: NOES: PLANNING COMMISSIONERS: ABSENT: PLANNING COMMISSIONERS: ABSTAIN: PLANNING COMMISSIONERS: Debbie Ubnoske, Secretary G:\Planning\2007\P A07-0 157 Noise Ordinance\Planning\PC RESOLUTION,doc 3 EXHIBIT A PROPOSED CC ORDINANCE 07-_ G:\Planning\2007\P A07-0 157 Noise Ordinance\Planning\PC RESOLUTION.doc 4 THE FOLLOWS: SECTION 1. Code to read as follows: ORDINANCE NO. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TEMECULA ADDING CHAPTER 9.20 TO THE TEMECULA MUNICIPAL CODE ESTABLISHING CITYWIDE STANDARDS FOR REGULATING NOISE CITY COUNCIL OF THE CITY OF TEMECULA DOES ORDAIN AS Chapter 9.20 is hereby added to the Temecula Municipal "CHAPTER 9.20 NOISE 9.20.010 Intent. At certain levels, sound becomes noise and may jeopardize the health, safety or general welfare of City residents and degrade their quality of life. This Chapter is intended to establish citywide standards to regulate noise. This Chapter is not intended to establish thresholds of significance for the purpose of any analysis required by the California Environmental Quality Act and no such thresholds are hereby established. 9.20.020 Definitions. Whenever used in this Chapter, the following terms shall have the following meanings: A. Animals. Any bird, cat, dog, goat, horse, or burro or donkey. B. "Audio equipment" means a television, stereo, radio, tape player, compact disc player, MP3 player, i-Pod or other similar device. C. "City Manager" means the City Manager or his or her designee. D. "Decibel" means a unit (dB) for measuring the relative amplitude of a sound equal approximately to the smallest difference normally detectable by the human ear, the range of which includes approximately one hundred thirty (130) decibels on a scale beginning with zero decibels for the faintest detectable sound. Decibels are measured with a sound level meter using different methodologies as defined below: 1. A-weighting (dBA) means the standard A-weighted frequency response of a sound level meter, which de-emphasizes low and high frequencies of sound in a manner similar to the human ear for moderate sounds. 2. Community Noise Equivalent Level (CNEL) means a 24-hour energy equivalent level derived from a variety of single-noise events, with weighting factors of 5 and 10 dBA applied to the evening (7 PM to 10 PM) and nighttime (10 PM to 7 AM) periods, respectively, to allow for the greater sensitivity to noise during these hours. 1 3. Ldn means Day-Night Average Sound Level. The A-weighted average sound level for a given area (measured in decibels) during a 24-hour period with a 10 dB weighting applied to night-time sound levels. The Ldn is approximately numerically equal to the CNEL for most environmental settings. 4. Maximum Sound level (Lmax) means the maximum sound level measured on a sound level meter. E. "Governmental agency" means the United States, the State of California, the County of Riverside, the City of Temecula, or any combination of these agencies. F. "Motor vehicle" means a vehicle that is self-propelled. G. "Noise" means any loud, discordant, raucous or disagreeable sound. H. "Occupied property" means any property upon which is located a residence, business or industrial or manufacturing use. I. Public Property. Property owned by a governmental agency or held open to the public, including, but not limited to, parks, streets, sidewalks, and alleys. J. Public or Private School. An institution conducting academic instruction at the preschool, elementary school, junior high school, high school, or college level. K. Sensitive Receptor. A land use that is identified as sensitive to noise in the Noise Element of the Riverside County General Plan and the Noise Element of the Temecula General Plan, including, but not limited to, residences, schools, hospitals, churches, rest homes, cemeteries or public libraries. L. Sound Amplifying Equipment. A loudspeaker, microphone, megaphone, stereo equipment, portable radio, boom box, or other similar devices. M. Sound Level Meter. An instrument meeting the standards of the American National Standards Institute for Type 1 or Type 2 sound level meters or an instrument that provides equivalent data. 9.20.030 Exemptions. Sound emanating from the following sources is exempt from the provisions of this Chapter: A. Facilities owned or operated by or for a governmental agency; B. Capital improvement projects of a governmental agency; C. The maintenance or repair of public properties; 2 D. Public safety personnel in the course .of executing their official duties, including, but not limited to, sworn peace officers, emergency personnel and public utility personnel. This exemption includes, without limitation, sound emanating from all equipment used by such personnel, whether stationary or mobile; E. Public or private schools and school-sponsored activities; F. Properly maintenance, including, but not limited to, the operation of lawnmowers, leaf blowers, etc., provided such maintenance occurs between the hours of 7:00 a.m. and 8:00 p.m.; G. Motor vehicles, other than off-highway vehicles. This exemption does not include sound emanating from motor vehicle sound systems; H. Heating and air conditioning equipment; I. Safety, warning and alarm devices, including, but not limited to, house and car alarms, and other warning devices that are designed to protect the public health, safety, and welfare; and J. The discharge of firearms consistent with all state laws. 9.20.040 General Sound Level Standards. No person shall create any sound, or allow the creation of any sound, on any property that causes the exterior sound level on any other occupied properly to exceed the sound level standards set forth in Tables N-1 and N-2. ( 3 TABLEN-l TEMECULA LAND USE/NolSE STANDARDS Property Receiving Noise :Maximum Noise Level (Ldn or CNEL, dBA) Very Low Low Low Medium I Medium I High Neighborhood Community Highway Toutist Service I Professional Office 50 70 I Industria1 Park 55 75 I Schools 50 65 I All others 50 70 I V meyardsl Agriculture 70 I Open Space 70/652 1 Mlximum exterior noise levels np to 70 dB CNEL are allowed for Multiple-Family Housing. 2 Where quiet is a basis required for the land use. 3 Regarding aircraft-related noise, the maximum acceptable exposure for new residential development is 60 dB CNEL. Type of Use Residential Commercial and Office Light Industrial Public/Institutional Open Space , Land Use Designation I Interior Hillside Rural Exterior-" 45 65 45 45 65 1 70' 70' 70 4 Community Noise Exposure (Ldn or CNEL) I 55 60 65 70 75 :1J:21111111~IIIIIIIIIIIIL I ~~ : ::~c~~ : i /iiiiiiiiii':::_:::_:::J:Ij I I l ~~I : ~~ ~~~~~t::~i:t=es, : : .Iiiiiiiiiiiiliiiiiiiiiiii~ fllllllllll+IlI1111ln~IIII':""'~ I . . II II1I II II T::::: :::imlllll II 11111 F:::::::::; ~~~~ I I I I ~ b,~~~~.~' ~~ Golf Course,Riding Stables, I[ II .~ Water Recreation, Cemeteries I I 1~~~tH::"::':4'lli:..:::::1 I I I I I ~~. In~~trial,M:mufacturing, ~~~~ ... r Utilities, Agriculture I I I r::' ~~i ~ ~ ~ ~ ~ ~ ~~~:tl:I~ Source: Modified from 1998 State of California General Plan Guidelines. 1. Regarding aiocr.rlt-related noise, the maximum acceptable exposure for new residential develvt'~.~, is 60dB CNEL. 2. No nonnallyacceptable condition is defmed for these uses. Noise studies are required prior to approval. 1 , Land Use Residential' Transient Lodging - Motel, Hotel Auditoriums, Concert Halls, AmphitheateIS2 Sports Arena, Outdoor Spectator Sports2 Playgrounds, Parks Office Buildings, Business Commercial, and Professional TABLE N-2 NolSElLAND USE COMPATIBILITY MATR.IX 80 ~ Nonnally Acceptable: Specified land use is satisfactory, based upon the assumption that any buildings involved ~ meet conventional Title 24 construction standards. No special noise insulation requirements. Ii:i:ti:i:ci:t: Conditionally Acceptable: New construction or development shall be undertaken only after a detailed noise IImI:l!tI analysis is made and noise reduction measures are identified and included in the project design. ~ N onnally Unacceptable: New construction or development is discouraged. If new construction is proposed, a ~ detailed analysis is required, noise reduction measures must be identified, and noise insulation features included in the design. . Clearly Unacceptable: New construction or deveLt'.~<~. clearly should not be undertaken. 5 9.20.050 Sound Level Measurement Methodology. The actual location of a sound level measurement shall be at the discretion of the enforcement officials identified in Section 9.20.080 of this Chapter. Sound level measurements shall be made with a sound level meter. Immediately before a measurelTient is made, the sound level meter shall be calibrated utilizing an acoustical calibrator meeting the standards of the American National Standards Institute. Following a sound level measurement, the calibration of the sound level meter shall be re-verified. Sound level meters and calibration equipment shall be certified annually. 9.20.060 Special Sound Sources Standards. The general sound level standards set forth in Section 9.20.040 of this Chapter apply to sound emanating from all sources, including the following special sound sources, and the person creating or allowing the creation of the sound is subject to the requirements of that section. The following special sound sources are also subject to the following additional standards. Failure to comply will constitute separate violations of this ordinance. A. Power Tools and Equipment. No person shall operate any power tools or equipment between the hours of 10:00 p.m. and 8:00 a.m. such that the power tools or equipment are audible to a person located inside an occupied building. No person shall operate any power tools or equipment at any other time such that the power tools or equipment are audible to a person located at a distance greater than one hundred (100) feet from the power tools or equipment. B. Audio Equipment. No person shall operate any audio equipment as described in 9.20.020(B), whether portable or not, between the hours of 10:00 p.m. and 8:00 a.m. such that the equipment is audible to a person located inside an occupied building. No person shall operate any audio equipment, whether portable or not, at any other time such that the equipment is audible to a person located at a distance greater than one hundred (100) feet from the equipment. C. Sound Amplifying Equipment or Live Music. 1. It is unlawful for any person to cause, allow or permit the emission or transmission of any loud and raucous noise from any sound-making, sound- amplifying device or live music under his control or in his possession: a. Upon any private property; b. Upon any public street, alley, sidewalk or thoroughfare; or c. In or upon any public park or other public place or property. 2. The words "loud and raucous noise," as used this section, shall mean any sound or any recording or live music thereof when amplified or increased by any electrical, mechanical or other device to such volume, intensity or carrying power as to unreasonably interfere with the peace and quiet of other persons within or upon any one or more of such places or areas, or as to unreasonably annoy, disturb, impair or 6 endanger the comfort, repose, health or safety of other persons within or upon anyone or more of such places or areas. 3. The word "unreasonably," as used in this section, shall include, but not be limited to, consideration of the hour, place, nature and circumstances of the emission or transmission of any such loud and raucous noise. D. Construction. No person shall engage in or conduct construction activity, when the construction site is within one-quarter mile of an occupied residence, between the hours of 6:30 p.m. and 6:30 a.m., Monday through Friday, and shall only engage in or conduct construction activity between the hours of 7:00 a.m. and 6:30 p.m. on Saturday. Further, no construction activity shall be undertaken on Sunday and nationally recognized holidays. Public works projects of any federal, state or local entity or emergency work by public utilities are exempt from the provisions of this subsection E. Residents working on their homes or property are exempt from the prohibition of construction activities on Sundays and holidays but must comply with the hourly restrictions set forth for Saturday when working on Sundays and holidays. The city council may, by formal action, exempt projects from the provisions of this chapter. E. Barking Dogs and Keeping of Noisy Animals. 1. Noisy Animal means any animal that barks, bays, cries, whines, howls, screeches or makes any noise for an extended period of time whether day or night, regardless of whether the animal is physically situated in or upon private property. Such extended period of time shall consist of the above described incessant noise for thirty (30) minutes or more in any twenty-four-hour period, or intermittent noise for sixty (60) minutes or more during any twenty-four-hour period. An animal shall not be deemed a "nuisance animal" for purposes of this article if, at any time the animal is making noise due to a person or other animal that is trespassing or threatening to trespass upon private property in or upon which the animal is situated, or when the animal is being teased or provoked. 2. Evidence of said "incessant noise" shall be made by direct observation of an enforcement official present on site responding to a complaint from a neighbor, OR a complaint form may be signed by a minimum of two neighboring property owners and submitted to an enforcement official. 3. Nothing in this chapter shall establish standards for private civil claims, in either civil court or small claims court, nor shall this chapter preclude any person from pursuing a private civil action in either civil or small claims court. 9.20.070 Exceptions. Exceptions may be requested from the standards set forth in Sections 9.20.040 (General Sound Standards) or 9.20.060 (Special Sound Sources Standards) of this Chapter and may be characterized as construction-related or single event exceptions. 7 A. Application and Processing. 1. Construction-Related Exceptions. An application for a Construction-Related Exception shall be made on forms provided by the Building and Safety Department and shall be accompanied by the appropriate filing fee. No public hearing is required. 2. Temporary Use Permit. An application for a Single Event Exception shall be made using the Temporary Use Permit application provided by the Planning Department and shall be accompanied by the appropriate filing fee. No public hearing is required. B. Requirements for Approval. The Director of Planning or his or her designee shall not approve an exception application unless the applicant demonstrates that the activities described in the application would not be detrimental to the health, safety or general welfare of the community. In determining whether activities are detrimental to the health, safety or general welfare of the community, the Director of Planning or his or her designee shall consider such factors as the proposed duration of the activities and their location in relation to sensitive receptors. If an Exception Application is approved, reasonable conditions may be imposed to minimize the public detriment, including, but not limited to, restrictions on sound level, sound duration and operating hours. C. Appeals. 1. Construction-Related Exception. Any person aggrieved by or dissatisfied with the Planning Director's decision on an application for a Construction- Related Exception may appeal from such action by filing an appeal according to the procedures setforth in Section 17.03.090 of the Temecula Municipal Code. 2. Temporary Use Permit. Any person aggrieved by or dissatisfied with the Planning Director's decision on an application for a Temporary Use Permit may appeal from such action by filing an appeal according to the procedures set forth in Section 17.03.090 of the Temecula Municipal Code. 9.20.080 Enforcement. A. The City Manager and his or her designee, including but not limited to police officers, code enforcement officers, park rangers or other enforcement officials shall have the authority to enforce the provisions of this Chapter. B. Any person who violates any provision of this Chapter is guilty of a misdemeanor, and upon conviction shall be punished as set forth in Chapter 1.20 of the Temecula Municipal Code. 8 C. Any person who violates any provision of this Chapter shall be subject to the enforcement remedies of Chapters 1.21 and 1.24 of the Temecula Municipal Code. D. Nothing in this Chapter shall be intended to limit any of the civil or criminal remedies available to the City, nor shall it be intended to limit the City from engaging in efforts to obtain voluntary compliance by means of warnings, notices, administrative citations or educational programs. 9.20.090 Duty to Cooperate. No person shall refuse to cooperate with, or obstruct, the enforcement officials identified in Section 9.20.080 of this Chapter when they are engaged in the process of enforcing the provisions of this Chapter. This duty to cooperate may require a person to extinguish a sound source so that it can be determined whether sound emanating from the source violates the provisions of this Chapter. SECTION 2. PRIOR ORDINANCE. The provisions of Chapter 9.20 shall supersede the provisions of any ordinances in conflict therewith adopted byreference in Chapter 1.08 of the Temecula Municipal Code. SECTION 3. SEVERABILITY. If any portion, provision, section, paragraph, sentence, or word of this Ordinance is rendered or declared to be invalid by any final court action in a court of competent jurisdiction, or by reason of any preemptive legislation, the remaining portions, provisions, sections, paragraphs, sentences, and words of this Ordinance shall remain in full force and effect and shall be interpreted by the court so as to give effect to such remaining portions of the Ordinance. SECTION 4. EFFECTIVE DATE. This ordinance shall take effect thirty (30) days after its adoption. 9 PASSED, APPROVED, AND ADOPTED by the City Council of the City of Temecula this day of Chuck Washington, 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 Ordinance No. was duly introduced and placed upon its first reading at a meeting of the City Council of the City of Temecula on the day of , , and that thereafter, said Ordinance was duly adopted by the City Council of the City of Temecula at a meeting thereof held on the day of , by the following vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: ABSTAIN: COUNCIL MEMBERS: Susan W. Jones, MMC City Clerk 10 ATTACHMENT NO.2 NOTICE OF PUBLIC HEARING Case No: Applicant: Location: Proposal: CEQA Action: Case Planner: Place of Hearing: Date of Hearing: Time of Hearing: s/zro Notice of Public Hearing A PUBLIC HEARING has been scheduled before the City of Temecula PLANNING COMMISSION to consider the matter described below: Planning Application No. PA07-0157 City of T emecula Citywide Review proposed Noise Ordinance and recommend an action to the City Council Exempt from review under the California Environmental Quality Act pursuant to Section 15061 (b)(3) Emery J. Papp, AICP City of Temecula, Council Chambers 43200 Business Park Drive, Temecula, CA 92590 June 6, 2007 6:00 p.m. Any person may submit written comments to the Planning Commission before the hearin9 or may appear and be heard in support of or opposition to the approval ofthe project at the time of hearing. If you challenge the project in court, you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice, or in written correspondence delivered to the Planning Commission at, or prior to, the public hearing. The proposed project application may be viewed at the Temecula Planning Department, 43200 Business Park Drive. Monday through Friday from 9:00 a.m. until 4:00 p.m. Questions concerning the Tject may be addressed to the case. planner at the City of Temecula Planning Department, (951) 694-6400. G:IPJanningI2007\PA07 -0157 Noise OrdlnanceIPlanningINOPH-PC.FRM.doc ATTACHMENT NO.4 PUBLIC CORRESPONDENCE G:IPlannlng\2007\PA07-0157 Noise OrdlnancelPlannlnglPC STAFF REPORT 09-05-07.doc 8 ee: B.Johnson COD...d EDelson 31815 Corte Rosario- Temecula, Ca 92592 Fax 951-506-2631 - Home Phone 909-676-040 I - Email conradra:;."..,,_la.com July 29, 2007 Dear Mayor Washington Council Reed..", Re: Noise Ordinance I have lived in Temecula for 21 years. I have campaigned, and voted for many wonderful Council people. I have backed and promoted numerous items now incorporated into our local laws and ordinances. Today when I read about the proposed noise ordinance in the Press Enterprise, I was simply elated. The people that I have already talked to are "'Au",....ely happy, and are anxious to see this much needed and overdue proposal enacted. This proposal with out a doubt is one of the best ever to come along. I would bet that at least 90% of all our citizens would not want a word of it changed. Of course there will be the offenders, the people that let their dogs bark all day long when they are gone. And some of the kids that get high in their garages, and beat on their drums, etc. Then there might be a few that claim the ordinance may hurt them financially. These people will be loud, but few. I ha'IC rcscarchcd.noise ordiu<UL"",s-.{'t1. tt.", ivIIvvv~H~ ,,~i.~"'''' Lv," ;....~"'~"''', S.... :;:;~",~u,- Sacramento, Malibu, and San Jose. The proposal is not as stringent as some of these cities, but certainly every bit as good. Enforcement does not seem to present a problem either. Malibu has a complaint system regarding "noises by animals" that supposedly is superb. Apparently Chairman Dennis Chiniaeff has never had a night job that forced him to sleep during the day next to a garage band. To eliminate this kind of noise is one of the most important items in this proposal. Would you PLEASE let me know when and where the public meeting regarding this proposal is going to be held? Also, is there anything we can do to help get this proposal passed,. especially without detrimental alterations? We will be glad to help in any way we can. As soon as I have a definite meeting date, I will start recruiting people to attend. Sincerely, ~ ///.~ Coni~"" ~ "'~. ,; W fJ.J;r ~ !L~ rv.t,~ ~ (U;S<L n lJ; ~~:tf (jSJ) I am as dog-friendly as anybody else. The kind of barking that a dog does while playing with children is fme and natural. But when a dog lets loose a high pitchea-barking spree, say, every 15 or 20 minutes or so, that can be a bit disconcerting. What triggers the barking sprees of Tony's dog are the people strolling on the side walk that the dog sees through the spaces between the wooden slats of your elongated gate and the rest of the front structure. Perhaps Gary or Dwayne can figure a way to block those spaces. One way I would think is to cover the entire gate and the rest of the structure, from the inside, with roofmg paper. (When there was the wooden fence between our properties, I inserted strips from thin garden boards to cover the slits so the dogs couldn't see me and thus not go off on barking sprees.) Tony's dog has pooh-poohed on my lawn twice, irritating my gardener By the way, I really appreciate the work that Dwayne did for me. He immediately recognized the problem I was having with a faucet set-up in the patio that included a contraption for showering outside-I like to douse myself with cold water during the hot sununer days. Taking a lot of pride in his craft, he fixed it-a real class act of plumbing finesse. One more note-about once a month I notice a muddy spot extending through a part of my side of the wall, the result from water seeping below the wall. If you lower the time limit on that particular watering station ofthe sprinkler system by, say, three or four minutes, the seepage will likely cease. cr- v- rrtdqAh --~/ - 3ar~ ,ing mac By Kerfy Madden IT'S1 A.M., AND THE DOGS next door are barking again. ,'. ActUally, it's 1:15 a.m. on the a1ann clock, loll am. on the V"~ clock and 7:2'1 p.m. on the whit.e-noise-machlne clock, whIch never says the right tlme because Iunpluglt and carry it ti'om room to room to hit "rain" or "crickets' or "OOean' to drown out the barldng dogs next door. Som~ tin\es nurn up music or bol1'Ow one oCmy klds' iPQ<ls. If>last the flUl.ln the winter, keep the. windows closed In the summer. The.dogli bark the split second I open a booklnbed. They bark while the colTee Is brewing at the creck.of dawn. My dreams In :...;.......are fllied with the timbreoCsnarling dogs. When lemmo longer bear It. I scream out the window like a f\shwiCe: "SHUT UPl" My husband hangs his head, and my chUdt.I'rreproacll me with 'Mom/' Letlt tlrst be said that llove dogs. Our messy house is a menagerie of children and anlmals- we have three klds, two dogs, two cats. two rmches and a low-maL..~"""""4""'" hennit crab: But the dogs next door bark and bark and bark. Let's call th~m TI1Jng One and Thing Two because my heart IuJs been hal'llened by their high-pitched assault. . "The owner ofThlngOne and TI1JngTwo, let.s call George. HlS name Is not really George, but my grandmother had a Oec?rge back in Leavenworth, Ran., and I never really under~ stood her raw contempt for him. But now 1 have my own . Ge_ Iivlng next door, and If she were aIlve, I would call her up an~ say, uAh. now I understand," BecaUse I hate my George with wlld. and free abandon, and I would s.Ing It ti'om the roof- tops - only I wouldn't be heard over his barldng dogs. . My grandmother's George dld not wear shlrts. My . Ge~'l;)ften does not wear ~hirts either, a pract1ce my grand- mothe.r 'Called "common," When my grandmother'S George drall8"d his trashcans to the curb, he beat his chest and howled amigbtyTarzanyell. Tll.ls never failed to stop her cold. antl she would get up otr her gilder, go into the house, slam the storm dopr, pickup her rosary and crank up the volume on"As tlle World Turns." My George does not do Tarzan, but hls cho- NS ofbarldngdogs equals a thousand Tarzans. George's dogs live about 10 feet from our bedroom win- dow. It's Usually the mlddle of the nlght wben they scramble up In a pan1c, nails scrltchlng across the hack porch as they rung themselves hysterlcalJy into tne yard to qark at nothJng. . M~it'8 a coyote. asKUnk, cat, raccoon, opossum. or it is ac~ tually nothing - but tlley hark uutil they are hoarse and de- feated and scrabble hack up the steps -'scriteh. scrltch. I tie aw~ tense. waiting for the cycle to start over. Recently, the dogs woke me againat 1:30 a.m. on the clock radio. I was home alone, husband and children away for the: .". JJtNNIPBB HIlWITSON lor TIlt T'tfllU weekend. 1 weut outside just as George drove up.l was going. to be brave and confront him. Politely. I rehearsed the speech. . I was very cairn. And then he saw me waltlng, so he didn't get out of his car - he just sat there. A standolT. 1 wanted to en- treathim - please, have mercy. SomethlngUke: "I have a b1>ok due. I feelllke a crazy persoh ~rying around. this noise ina~ chlne, rainstorm and crickets blarlng, day and' night. ' But he "!ouldn't get out, and 1 chlckened out. ' . . Another nIgh~ I did go pound on the door. He ~,.r.~.j and w~ed me, "You better getoutoChere," Uke 1 was a thlef. 1 sald, 'It's your neighbOr! Your dogs have beenbar!dng for Qn houri" He said. "Uh, yeah.' Then he dlsappeared. Never an apology. Nothlng. My husband has gone over to talk to him several thnes. and the dlseusslons take forever because my husband thlDks that eventually compasslon and empathy will penetrate his thlckhlde. Hal In one _.",..._;lon, George suggested that we cut downourl>ackiard trees because they are to blame for his dogs barldng, as they attract squirrels. I left a poem by Billy COllins, called "Ano.ther :Reason I Don't Keep a GUn in the House,"ln hlsmallbox. Part oflt goes: . The neighbors' dog will not stop barkmg. I close all the wtn.doWs In lhe house arul pul ana Beelhovensymph01lyjull"blast . but 1 cansUll hear him muJ]led uruler the mu.olc, barking, barking, barking, and now 1 can see htmsitting in the orchestra, his head raised col\1ldently as If Beethoven h<l\l Included a partfor barking dog. My George has. so fur, expressed no more response to the poem thanany otourotherpleas.m the meantime. I have pur- ChaSoid a product called the Dog SUencer Pro. It should arrlve any day. It costs $89.95, and I am going to hang It on our fence wlth aprayer that the barks oCThlngOne and ThlngTwo will, as promised, set olThlgh-frequency sound waves that are sup- posed to "annoy" but not hurt their ears, and that all will be si- lent. The Ila!esman at Good LIfe Products said dog owners never orderthls product -It's a1waystbe neJghhors. They call up, desperate. and say, "Listen. Can you hear that? Can you hear It?' and !)old up the receiver for hlm to listen to hark.ing dogs. I want this Dog Silencer Pro to be the miracle that will transform aU OUX' live... ~ t.ho~ 'p~:c~et1l1lg'n-rrequency sound waves will carry with them the possibility of goodwill, forgivenes.s and even neighborliness - all festering resent- ments wasbed away.lfnot.lt comeswltha3o-daymoney-back ~arantee. . K1!:aRY MADDEN is the authorof"Louisiana'S Song. II Getting N~'YtXo!.~ ~~~~~own "There's' noise everywhere." , 'Ib give the law ,some teeth, the' city Department ofEnvlron- mental Protectionls assignlng45 agel).tsto sci:eencomplaints about chronic noIse,esJleci!illY,in clubs and homes. They'll, be armed with some tough' new gllidelines: Nlghtclubs,may not bl,ast music that Is "plalnly audi- ble" (dellned as TdecIbels) more than 'IS feet from their front doors_ ,NE'" Y9KK ...,..., .He gOt l'few _N6i!ip.\J~ the "No.1 quaIity~oh. y-orkers to stopsmokiilg in pub- lifeis~e" for reSIdents, SIlI<fthe Iic bWIdings, 'bars. and' restau- mayor, calling the law "a key e1- ,rants, and the city's diniilgspots enient" oflds agenda PUblic sen- Win SQon,be free oftraDs fats. But tlment appears ,to beou his sIde. >Can Mayor MiChael R. Bloom- Noise Complaints topped theIlst berg deliver on his vow to rOake of problems called in,to ,the city's the Big Apple less noiSy? 311,I1Onemergency hotline,in the 'Last week, a much-bally- last 12 months: More than ,hooed I1Ois~ o{mt,rol ordinance ,278,000 were logged' sineeiast 'went into ell'ect, targetlllg some, J:1.i]y, most of then;, about loud ,ofthe worst Q1I'<,nders in the ca- iie@,borS.', ' cophony of everyday u,rban life: "The ;Idea Is ,that we'll see a Mlster Softee ice cream truCks, gradual di1I'erence in noise over whosetil).l<lingj!ngles play oVer tim~, not right ,'away," , said ~d over;, ~tcluh :-'~.;..u:..~v~.:.~ spokesman Micha~ .Saucier of whose rowdy music blares in the Em'IroinnentaJ. Protection , otherwise.qniet' neighborhoods; Department;whicli adminiSters aiJ.ddogsb~ll'hOursof_ the new law.'"Thls Is a com- ~dnigh.J.- ' 'plaintS-drIven System 'al;lout ,The golinifthe law Is to give noIse, and the public serves. as .thecitythatn~ersleeps."Ii1Uch;. "Ol,lr , ears." liis,d.;.~.::u,~ent'B deserve!;! peace and quiet," agents ,1(I'il) be respOnding to Bjoomberg.said'whenhe Si!l\1el:! lon~ . COm))laints,heex, itiastyear. T.heftoesforviOlatilig , plainecj, but police will respond noise levels have risen ~ ranging to CPIIlPlaints aStheYh!1ppen; frolllless t,han $100 for abar~,Newy-orl< Is not the oruy c.Io/ d~otiSlIIldsofdolliirs fo,r , tQ tacl<I"such a problem: Strong repeat nightclub 01l'entlers: ", an~;'~ inltiatiyes p...ve ,been ., Blvv";~<'a, wh6 quit the Re- irilpleinented in: l'ecentyears public>\ll:PattYiastmont!i.andi/l frol,)l,Aiilineila. Calif., to,Sara- ' noW lj.I1independent,hashlliIe(i, ;s6tll,Ji')a. , ..' '.,' the IaW as "theJlrst 11OIIlPrelll;n,' . ' Ai1<l.~'moomberg's2003 siv<i overhaW" ofIocaI110IselelrtS-, crusade &gliinstsmoking, his lation in 30 years. ' ,"" , ," nOiSereg..@tlomihavegenerated "I thjnIdt'sgiea~ ~heY'ni trY,~ ' 'lij;(;le<;dnta;QvetSy. '.. ' , '. . ' lug to doSOmethiJ1gabout all of . YetsOlIle'believethls initia- thIs," s~<l. James T,jtJis; aM6til1~. tiYe may,in~t ,th'efa~ Of other ,Vernoil, N.Y., retiree outfol'-li': "qplility bflife" campaigns. In the strollin- MidtoWn-A!! '1\'LspoJqj,:llit!i'l~IjOs;:{oreXample;Mayor , two cars passed by \Vith radi<j$ ~'YWdI. ~ch, ."o~v..,..::.ng to L~,"u....;....g ~'music; a,'~ ~;,,: 'a.D.Qutci-yovertheJiiunberof.::;e- gine l'Qaroi 1\ptl.\e street withlt~!, " verely mimta)Iy, ill hotilelesSpeo- siI'e1l b~)acIdl!lllimers ecl" ' Rl" on, theStree~' endorsed a oeeF, fron!'abUlldin:g Ul)del' policy oftilking them to Mspi, COIllltruCtion.. ., tals {or treatment and observ...- , "But I don't know If they can tion, ,The initia:tiveWaB slowed, by solve tJ;lls problem," Titus "dded., a lawsuits, ,bure;iucraticwran; A noise ordin.ance takes aim at loud nightclubs and barkin.1!' P()~ But '-:...,; . some'saythere's no , shushing thdr city. By Jos;H (JETLIN Times stajfWriter ., \' ''.j \1 '(I ,\ MARYAx.TAFFEE A8soctated PreSll. 'j URBAN RACKE'1:: "Noise is the No.1 quality-of-life issuk;' says ,J Mayot"Michael If,. Bloomberg, whose new. lawinqludes stifferfi~s~)~'.~ , . "J A few days later, subWay ,com;;; muters at the Union square sta.,; tIon' were treated to'" Jiarsjt* squealing of brakes as a pilss~'1i ger traili, j;wisted through a tur!:,,,j' nellIito the station. A conductor';' ! on another train' rrnu;le an,,;j nOWlcements asthe'brake noisi$:~ enveloped the station. It waS aid most imposSible to Understand~: lilii1 "ii A little, oyer. a mile aw~I'~1 ' were barrelinlt'out of a MidtoWl).I: . tw1n~1 :(;mw parf~;Ave.nue. ,,~11~~1!i 'din overwhe!ining. Brett'I;'olinQi~,' a magaZine: Pl'llduCtiqn ~~it~, on.t_foi' anyafternoon ,;~~~r~: breal<;: scoll'ed at the i<!ea tl1~" the city COWd ,~ or should ..,,,,~ I' make a dent IIi the vol1nne. ''i'~'' "They're: regola"tinlius' t<l'4i! death here," I)e 1lI1llP~."IfNejV8:( Yorl<Is aUyt;l1ing; it's nO~e;'~~)] over :it. If' yOu don't -like"tl11!: i" sOlmds ,he~~move' sOi:D.ewhere~nl else."" '. ,', ", <,:,'-, ,Sauc.ler conc~ the ine .' tabillty, pf noise.. But JW n9, , "The point tJf the nOW"IawIs.'n9 to shut everyt;rung down. Wej.;' ' w.ip.t to ,try llnd strike a balan~ becaUse New Yorkers deserve much 'peace as they Clln,get'in city of ~.2 million people," ' .ilIes, and disputes over 1)0spItal space. Nearly 10 years later, Mayor RUdOlph W. GIuliimi announc~d a crackdown on jayWalking, pro- posing still' Ilnes and police <>n- 'forcement. It, too, stalled, widely derided as an e><ainple of City HalI .going against the grain of New'Yorklife. ' Some skeptics ,thiilk the bige gestobstacle ~ Bloomberg's ini- tiative Is the officially sanCtioned daily noise in.the streets, parks, neighborhoods, tuimeIs and Sub' Ways. ')'he daiiy racket seems be- yond regq;ation,critics s.,y. 'AsJujy 4 dawned quietIy over Manhattan's Upper West; SIde, for example, the caJIIi was shate tered.at 8a.llL, when. a COn-Edie son' ConstruCtiou crew began tearing up the street in'the healt of. a deJis~ly pOPulated residen, , .tlal neigj:).horhooli Noise echoed up and downtheca.nyol1 of talI apartm,~nt bujIdings,' ,; but the ,Con-~.l) rePllir crew said it l1ad alI the necessary cleiu'ance, to do'. such work ona holiday mornitlg. ~Cllilyou bj!lieve this noIse?" asl<ecI Mike Itamirez, pedaling past on abIcycle. ~People are still sleepluglI doni know what you , do about soinethinglike this." josh.getlin@latimes.com ~ .~ 'f-;; Cle~~f1 df. I( ?;flf!ttll(} f'l>AJ( / 1:r." 'I' ""'fl(tL" -r: en:"" (!ftr~Ti"c TO JJCI~ '~'l(j'cV"~ ""-Ill' -v 16 a~~ Ul~~' {;'~J~i,! ,~ f* ;," ,~' ATTACHMENT NO.5 NOTICE OF PUBLIC HEARING G:\Planning\2007\PA07-0157 Noise Ordinance\Planning\PC STAFF REPORT 09-05-07,doc 9 Notice of Public Hearing A PUBLIC HEARING has been scheduled before the City of Temecula PLANNING COMMISSION to consider the matter described below: Case No: Planning Application No. PA07-0157 Applicant: City of Temecula Location: Citywide Proposal: Review proposed Noise Ordinance and recommend an action to the City Council CEQA Action: Exempt from review under the California Environmental Quality Act pursuant to Section 15061(b)(3) Case Planner: Emery J. Papp, AICP . Place of Hearing: City of Temecula, Council Chambers 43200 Business Park Drive, Temecula, CA 92590 Date of Hearing: September 5, 2007 Time of Hearing: 6:00 p.m. Any person may submit written comments to the Planning Commission before the hearing or may appear and be heard in support of or opposition to the approval of the project at the time of hearing. If you challenge the project in court, you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice, or in written correspondence delivered to the Planning Commission at, or prior to, the public hearing, The proposed project application may be viewed at the Temecula Planning Department, 43200 Business Park Drive, Monday through Friday from 9:00 a.m. until 4:00 p.m. Questions concerning the project may be addressed to the case planner at the City of Temecula Planning Department, (951) 694-6400. G:\Planning\2007\PA07 -0157 Noise Ordlnance\Planning\NOPH-PC 09-05-07,doc Ii - I. ITEM NO. 15 I I Approvals City Attorney Director of Finance City Manager 1#~ IJ~ ~ CITY OF TEMECULA AGENDA REPORT TO: City Manager/City Council FROM: Debbie Ubnoske, Director of Planning DATE: September 25, 2007 SUBJECT: A Development Agreement, General Plan Amendment, Tentative Tract Map, and Development Plan with a Minor Exception for a 608,934 square foot industrial building on 32 acres, and for the future development of the remaining 52 acres to include industrial, commercial, retail, high-density residential, and/or public institutional facility land uses. In addition, the project includes an Operating Covenant Agreement that outlines incentives relating to this expansion. PREPARED BY: Dana Schuma, Associate Planner RECOMMENDATION: That the City Council: 1. Adopt a resolution entitled: RESOLUTION NO. 07- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA APPROVING A MITIGATED NEGATIVE DECLARATION FOR THE TEMECULA PROPERTIES LLCIPROFESSIONAL HOSPITAL SUPPLY PROJECT ON AN 84- ACRE SITE LOCATED AT THE NORTHWEST CORNER OF DENDY PARKWAY AND WINCHESTER ROAD AS A FUTURE SPECIFIC PLAN AREA (APN 909-370-018 AND 909-370-032) WHICH CONSISTS OF PLANNING APPLICATIONS NO. PA07- 0048, A GENERAL PLAN AMENDMENT; PA07-0220 A DEVELOPMENT AGREEMENT; PA06-0370, A TENTATIVE MAP; AND PA06-0369, PA07-0090, A DEVELOPMENT PLAN WITH A MINOR EXCEPTION 2. Adopt a resolution entitled: RESOLUTION NO. 07- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA APPROVING A GENERAL PLAN AMENDMENT TO TABLE LU-5 OF LAND USE ELEMENT TO DESIGNATE AN 84- ACRE SITE LOCATED AT THE NORTHWEST CORNER OF DENDY PARKWAY AND WINCHESTER ROAD AS A FUTURE SPECIFIC PLAN AREA (APN 909-370-018 AND 909-370-032) PLANNING APPLICATION NO. PA07-0048 3. Adopt a resolution entitled: RESOLUTION NO. 07- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA APPROVING A TENTATIVE TRACT MAP (TTM 35181) TO SUBDIVIDE AN APPROXIMATE 84-ACRE SITE INTO FIVE PARCELS, FOUR DEVELOPABLE LOTS AND ONE SLOPE AND EASEMENT PARCEL, LOCATED AT THE NORTHWEST CORNER OF DENDY PARKWAY AND WINCHESTER ROAD (APN 909-370- 018 AND 909-370-032) PLANNING APPLICATION NO. PA06.{)370 4. Adopt a resolution entitled: RESOLUTION NO. 07- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA APPROVING A DEVELOPMENT PLAN TO CONSTRUCT A THREE-STORY, 608,934 SQUARE FOOT INDUSTRIAL DISTRIBUTION BUILDING ON AN APPROXIMATE 32-ACRE SITE GENERALLY LOCATED AT THE NORTHWEST CORNER OF DENDY PARKWAY AND WINCHESTER ROAD, AND A MINOR EXCEPTION TO ALLOW FOR A ONE PERCENT BUILDING HEIGHT INCREASE FROM 50' TO 50'8" (APN 909-370- 018 AND 909-370-032) PLANNING APPLICATIONS NO. PA06- 0369 AND PA07 -0090 5. First reading and introduction of an ordinance entitled: ORDINANCE NO. 07- AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TEMECULA APPROVING A DEVELOPMENT AGREEMENT BETWEEN TEMECULA PROPERTIES, LLC, PROFESSIONAL HOSPITAL SUPPLY, INC., AND THE CITY OF TEMECULA FOR AN APPROXIMATE 84-ACRE SITE GENERALLY LOCATED AT THE NORTHWEST CORNER OF DENDY PARKWAY AND WINCHESTER ROAD IN THE CITY OF TEMECULA (APN 909-370- 018 AND 909-370-032) PLANNING APPLICATION NO. PA07.{)220 6. Adopt a resolution entitled: RESOLUTION NO. 07- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA APPROVING THAT CERTAIN AGREEMENT ENTITLED "OPERATING COVENANT AGREEMENT (PROFESSIONAL HOSPITAL SUPPLY) BY AND BETWEEN THE CITY OF TEMECULAAND PROFESSIONAL HOSPITAL SUPPLY, INC." BACKGROUND: Plannina Commission Discussion: The proposed PHS facility expansion project consists of a Development Agreement, General Plan Amendment, Tentative Tract Map, and Development Plan with a Minor Exception for the development of an approximate 84-acre site. The property will be designated as a future Specific Plan Area and subdivided into five lots. Four of the five lots will be developed and one will be an easement parcel for slope and drainage purposes. The project will accommodate for future industrial, commercial retail, office, high-density residential, and/or public institutional facility land uses authorized by the Development Agreement. A future Specific Plan will define the anticipated land uses and development standards for proposed Lots 1, 2, and 3. A Development Plan for Lot 4 proposes a new industrial medical distribution facility for PHS. The project will consist of a three-story, 608,934 square foot industrial building for office, warehouse/ distribution use, and a 400-square foot pump house. All five applications for the project were reviewed and recommended for approval by the Planning Commission on September 5, 2007. At the hearing, the Planning Commission expressed concern over some of the Development Agreement language. Mr. Marty Weiss, the applicant's attorney, agreed to the minor technical modifications. The City Attorney's office has incorporated the requested changes and the revised Development Agreement is attached. One speaker, Mr. AI Rattan, indicated his belief that a Mitigated Negative Declaration did not provide adequate environmental review for the project and requested that the Planning Commission delay action so that an Environmental Impact Report could be prepared. Mr. Rattan also expressed concerns about the provisions of the Development Agreement and questioned the number of jobs which PHS would actually be creating through this project. Plannina Commission Action: The Planning Commission moved to recommend approval of all five applications for the project (PA07 -0220, PA07 -0048, PA06-0370, PA06-0369, and PA07 -0090) with a vote of 4-0 (Chairman Chiniaeff absent), subject to the following recommended changes: . Delete Mitigation Measures Nos. 17 and 24 from the Mitigation Monitoring Program regarding additional cultural resource testing prior to grading and the preservation of all sacred sites . Amend Mitigation Measure No. 22 of the Mitigation Monitoring Program to state, "Further actions shall be determined pursuant to California Public Resources Code Section 5097.98" . Delete Condition of Approval No. 60 from both the Development Plan and the Tentative Tract Map regarding the preservation of all sacred sites . Amend Condition of Approval No. 122 of the Development Plan to guarantee the maintenance of the plantings for a two-year period . Amend the expiration date for both the Development Plan and Tentative Tract Map entitlements to match the term of the Development Agreement . Amend the Planning Commission Resolution to recommend that the City Council adopt an Ordinance for the Development Agreement . Incorporate several technical changes into the language of the Development Agreement FISCAL IMPACT: In an effort to retain and encourage this expansion of valuable jobs and sales tax dollars to remain within the City of Temecula, it was necessary to create an Operating Covenant Agreement that outlines incentives relating to this expansion. Specifically, the City of Temecula is willing to defer up to $2 million in Development Impact Fees associated with this development contingent on PHS maintaining their point of sale within the City of Temecula for eight years. After the eight years, these fees would be considered forgiven at that time. This agreement is a very positive step for both PHS and the City of Temecula as PHS is the single largest sales tax producer within the CityofTemecula. PHS has also experienced a growth rate of 10% per year and expects this to continue in the future. At this growth rate the City of Temecula stands to potentially receive upwards of $25 million in sales tax generation over the course of ten years. Job growth is also paramount as PHS currently employs 1,400 people within the Temecula facility and expects to increase job growth by 20-30% over the next five years. This commitment to jobs through the expansion clearly places the City of Temecula as the corporate hub for PHS. ATTACHMENTS: CC Resolution No. 07-_ (Mitigated Negative Declaration) CC Resolution No. 07-_ (General Plan Amendment) CC Resolution No. 07-_ (Tentative Tract Map) CC Resolution No. 07-_ (Development Plan with Minor Exception) CC Ordinance No. 07-_ Exhibit A - Development Agreement CC Resolution No. 07-_ Exhibit A - Operating Covenant Agreement Final Mitigation Monitoring Program Final Conditions of Approval for TTM35181 Final Conditions of Approval for PHS Development Plan Planning Commission Staff Report for September 5, 2007 RESOLUTION NO. 07- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA APPROVING A MITIGATED NEGATIVE DECLARATION FOR THE TEMECULA PROPERTIES LLCIPROFESSIONAL HOSPITAL SUPPLY PROJECT ON AN 84-ACRE SITE LOCATED AT THE NORTHWEST CORNER OF DENDY PARKWAY AND WINCHESTER ROAD AS A FUTURE SPECIFIC PLAN AREA (APN 909- 370-018 AND 909-370-032) WHICH CONSISTS OF PLANNING APPLICATIONS NO. PA07-0048, A GENERAL PLAN AMENDMENT, PA07-0220 A DEVELOPMENT AGREEMENT; PA06-0370, A TENTATIVE MAP, AND PA06-0369 AND PA07 -0090, A DEVELOPMENT PLAN WITH A MINOR EXCEPTION THE CITY COUNCIL OF THE CITY OF TEMECULA DOES HEREBY RESOLVE AS FOLLOWS: Section 1. Procedural Findinas. The City Council of the City of Temecula finds and determines that: A. The Project consists of the Temecula Properties LLC/Professional Hospital Supply Project located on an 84-acre site at the northwest corner of Dendy Parkway and Winchester Road (APN 909-370-018 and 909-370-032) and includes five Planning Applications: PA07-0048, a General Plan Amendment; PA07-0220 a Development Agreement; PA06-0370, a Tentative Map; and PA06-0369 and PA07- 0090, a Development Plan with a Minor Exception (the "Project"). B. The Mitigated Negative Declaration and the Project applications were processed in the time and manner prescribed by State and local law. C. On September 5, 2007, the Planning Commission held 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 of or in opposition to the Project and the Mitigated Negative Declaration. D. At the conclusion of the Commission hearing and after due consideration of the testimony, the Commission recommended that the City Council approve the Project and the Mitigated Negative Declaration. E. On September 25, 2007, the City Council held a duly noticed public hearing on the Project and the Mitigated Negative Declaration 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 the Project and the Mitigated Negative Declaration. F. At the conclusion of the City Council hearing and after due consideration of the testimony and the administrative record, the City Council adopted this Resolution. G. All legal preconditions to the adoption of this Resolution have occurred. Section 3. Environmental Findinas. The City Council hereby further finds and determines that: A. Pursuant to California Environmental Quality Act ("CEQA"), City staff prepared an Initial Study of the potential environmental effects of the approval of the Project as described in the Initial Study. Based upon the findings contained in the Initial 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. The public comment period commenced on August 4, 2007, and expired on September 3, 2007. Copies of the documents have been available for public review and inspection at the offices of the Department of Planning, located at City Hall, 43200 Business Park Drive, Temecula, California 92590. C. Three written comments were received prior to the public hearing and a response to all the comments made therein was prepared, submitted to the Planning Commission and the City Council and incorporated into the administrative record of the proceedings. D. The City Council reviewed the Initial Study, Mitigated Negative Declaration, various staff reports, all comments received regarding the Mitigated Negative Declaration during the Public Comment Period, all comments received at the public hearing before the Planning Commission and the City Council, and the administrative record. Based on the whole record before the City Council hereby finds and determines that: (1) the Mitigated 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 Mitigated Negative Declaration reflects the independent judgment and analysis of the City Council. Section 4. Adootion of Mitioated Neoative Declaration. Based on the findings set forth in this Resolution, the City Council adopts the Mitigated Negative Declaration prepared for this project. Section 5. Certification. The City Clerk shall certify to the adoption of this Resolution. This Resolution shall take effect upon its adoption. PASSED, APPROVED, AND ADOPTED by the City Council of the City of Temecula this 25th day of September , 2007. Chuck Washington, 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. 07- was duly and regularly adopted by the City Council of the City of Temecula at a meeting thereof held on the 25th day of September , 2007, by the following vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: ABSTAIN: COUNCIL MEMBERS: Susan W. Jones, MMC City Clerk RESOLUTION NO. 07- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA APPROVING A GENERAL PLAN AMENDMENT TO TABLE LU-5 OF LAND USE ELEMENT TO DESIGNATE AN 84-ACRE SITE LOCATED AT THE NORTHWEST CORNER OF DENDY PARKWAY AND WINCHESTER ROAD AS A FUTURE SPECIFIC PLAN AREA (APN 909-370-018 AND 909-370-032) PLANNING APPLICATION NO. PA07-0048 THE CITY COUNCIL OF THE CITY OF TEMECULA DOES HEREBY RESOLVE AS FOLLOWS: Section 1. Procedural Findinas. The City Council of the City of Temecula finds and determines that: A. On September 5, 2007, the Planning Commission recommended that the City Council approve Planning Application No. PA07-0048 that consists of a General Plan Amendment to Table LU-5 of Land Use Element to designate an 84-Acre site located at the northwest corner of Dendy Parkway and Winchester Road as a Future Specific Plan Area (Apn 909-370-018 And 909-370-032) (the "Amendment"). B. The Amendment was processed in the time and manner prescribed by State and local law. C. On September 5, 2007, the Planning Commission held 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 of or in opposition to the Amendment. D. At the conclusion of the Commission hearing and after due consideration of the testimony, the Commission recommended that the City Council approve the Amendment. E. On September 25, 2007, the City Council held a duly noticed public hearing on the Amendment 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 the Amendment. F. On September 25, 2007 the City Council adopted Resolution No. 2007- entitled: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA APPROVING A MITIGATED NEGATIVE DECLARATION FOR THE TEMECULA PROPERTIES LLC/PROFESSIONAL HOSPITAL SUPPLY PROJECT ON AN 84-ACRE SITE LOCATED AT THE NORTHWEST CORNER OF DENDY PARKWAY AND WINCHESTER ROAD AS A FUTURE SPECIFIC PLAN AREA (APN 909-370-018 AND 909-370-032) WHICH CONSISTS OF PLANNING APPLICATIONS NO. PA07-0048, A GENERAL PLAN AMENDMENT, PA07-0220, A DEVELOPMENT AGREEMENT; PA06-0370, A TENTATIVE MAP, AND PA06-0369 AND PA07-0090, A DEVELOPMENT PLAN WITH A MINOR EXCEPTION." G. At the conclusion of the City Council hearing and after due consideration of the testimony and the administrative record, the City Council adopted this Resolution. H. All legal preconditions to the adoption of this Resolution have occurred. Section 2. Further Findinas. The City Council, in approving the General Plan Amendment hereby further finds, determines and declares that: A. The amendment is compatible with the health, safety and welfare of the community; The proposed amendment to add a future Specific Plan area to Table LU-5 of the Land Use Element meets the goals and policies of the General Plan. and is consistent with the anticipated impacts of the Final Environmental Impact Report (EIR) for the General Plan and the guidelines of the Development Code. Any future proposals for the Specific Plan area will be subject to the City's General Plan, Development Code and Design Guidelines to ensure the public health, safety and welfare of the community is maintained as new development occurs. B. The amendment is compatible with existing and surrounding uses; The proposed amendment to add a future Specific Plan area to Table LU-5 of the Land Use Element is compatible with the existing and surrounding uses because any future proposals for the 84-acre site will be consistent with the goals and policies of the General Plan and the content and processing requirements contained in the Development Code. Therefore. the proposed amendment will be compatible with existing and future uses in the surrounding area. C. The amendment will not have an adverse effect on the community and are consistent with the goals and policies of the adopted General Plan; The proposed amendment will not conflict with the existing zoning or designated land uses throughout the City. The proposed amendment will result in compatible future development, which will meet the recommended land use and circulation pattern, maximum density and intensity of development, a desired mix of uses and other factors consistent with the goals and policies of the General Plan. Section 3. Aooroval. The City Council hereby approves Planning Application No. PA07-0048 consisting of a General Plan Amendment to Table LU-5 of Land Use Element to designate an 84-Acre site located at the northwest corner of Dendy Parkway and Winchester Road as a Future Specific Plan Area (APN 909-370-018 and 909-370- 032). Section 4 Certification. The City Clerk shall certify to the adoption of this Resolution. This Resolution shall take effect upon its adoption. PASSED, APPROVED, AND ADOPTED by the City Council of the City of Temecula this 25th day of September , 2007. Chuck Washington, 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. 07- was duly and regularly adopted by the City Council of the City of Temecula at a meeting thereof held on the 25th day of September , 2007, by the following vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: ABSTAIN: COUNCIL MEMBERS: Susan W. Jones, MMC City Clerk RESOLUTION NO. 07- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA APPROVING A TENTATIVE TRACT MAP (TTM 35181) TO SUBDIVIDE AN APPROXIMATE 84- ACRE SITE INTO FIVE PARCELS, FOUR DEVELOPABLE LOTS AND ONE SLOPE AND EASEMENT PARCEL, LOCATED AT THE NORTHWEST CORNER OF DENDY PARKWAY AND WINCHESTER ROAD (APN 909-370-018 AND 909-370-032) PLANNING APPLICATION NO. PA06- 0370 THE CITY COUNCIL OF THE CITY OF TEMECULA DOES HEREBY RESOLVE AS FOLLOWS: Section 1. Procedural Findinas. The City Council of the City of Temecula finds and determines that: A. On September 5, 2007, the Planning Commission recommended that the City Council approve Planning Application No. PA06-0370 that consists of a Tentative Tract Map to subdivide an approximate 84-acre site into five parcels located at the northwest corner of Dendy Parkway and Winchester Road (RN 909-370-018 and 909- 370-032) (the "Tentative Tract Map"). B. The Tentative Tract Map was processed in the time and manner prescribed by State and local law. C. On September 5, 2007, the Planning Commission held 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 of or in opposition to the Tentative Tract Map. D. At the conclusion of the Commission hearing and after due consideration of the testimony, the Commission recommended that the City Council approve the Tentative Tract Map. E. On September 25, 2007, the City Council held a duly noticed public hearing on the Tentative Tract Map 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 the Tentative Tract Map. F. On September 25, 2007 the City Council adopted Resolution No. 2007- entitled: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA APPROVING A MITIGATED NEGATIVE DECLARATION FOR THE TEMECULA PROPERTIES LLC/PROFESSIONAL HOSPITAL SUPPLY PROJECT ON AN 84-ACRE SITE LOCATED AT THE NORTHWEST CORNER OF DENDY PARKWAY AND WINCHESTER ROAD AS A FUTURE SPECIFIC PLAN AREA (APN 909-370-018 AND 909-370-032) WHICH CONSISTS OF PLANNING APPLICATIONS NO. PA07-0048, A GENERAL PLAN AMENDMENT, PA07-0220, A DEVELOPMENT AGREEMENT; PA06-0370, A TENTATIVE MAP, AND PA06-0369 AND PA07-0090, A DEVELOPMENT PLAN WITH A MINOR EXCEPTION." G. At the conclusion of the City Council hearing and after due consideration of the testimony and the administrative record, the City Council adopted this Resolution. H. All legal preconditions to the adoption of this Resolution have occurred. Section 2. Further Findinas. The City Council, in approving the Tentative Tract Map hereby finds, determines and declares that: A. The proposed subdivision and the design and improvements of the subdivision are consistent with the Development Code, General Plan, and the City of Temecula Municipal Code; Tentative Tract Map No. 35181 is consistent with the General Plan, the Subdivision Ordinance. the Development Code. and Municipal Code because the project has been designed in a manner that is consistent with the policies and standards in the General Plan. Subdivision Ordinance. Development Code. and Municipal Code. B. The Tentative Map does not propose to divide land which is subject to a contract entered into pursuant to the California Land Conservation Act of 1965, or the land is subject to a Land Conservation Act contract but the resulting parcels following division of the land will not be too small to sustain agricultural use; The subject parcels do not propose to divide land which is subject to a contract entered into pursuant to the California Land Conservation Act of 1965. The subject property has not been designated for conservation or agricultural land and is not subject to the California Land Conservation Act of 1965. C. The site is physically suitable for the type and proposed density of development proposed by the Tentative Map; The site is physically suitable for the proposed industrial development because the proposed use is consistent with the General Plan and Development Code. The proposed Tentative Tract Map (TTM 35181) meets the minimum lot size requirements contained within the Development Code, and is consistent with all of the requirements found within City of Temecula General Plan and the City of Temecula Subdivision Ordinance. The subdivision (TTM 35181) is therefore consistent with the Light Industrial zone. D. The design of the subdivision and the proposed improvements, with Conditions of Approval are not likely to cause significant environmental damage or substantially and avoidably injure fish or wildlife or their habitat; The proposed project site does contain sensitive habitat. The project impacts will be mitigated to a level of insignificance based upon the identified mitigation measures and the Conditions of Approval and will not therefore cause significant environmental damage or substantially and avoidably injure fish or wildlife in their habitat. E. The design of the subdivision and the type of improvements are not likely to cause serious public health problems; The project. as conditioned by the Fire Prevention Bureau. the Public Works Department. and the Building and Safety Department. will comply with the applicable improvement requirements designed to prevent serious public health problems. Furthermore, provisions are made in the General Plan and the Development Code to ensure that the public health, safety and welfare are safeguarded. The project is consistent with these documents. F. The design of the subdivision provides for future passive or natural heating or cooling opportunities in the subdivision to the extent feasible; Prior to any issuance of building permits for the subject subdivision, and prior to any construction, the applicant will be required to submit building plans to the City of Temecula Building Department. These plans will be required to comply with all applicable Uniform Building Codes. which also include requirements for energy conservation. Therefore. the construction plans will comply with all applicable building codes and State energy guidelines. G. The design of the subdivision and the type of improvements will not conflict with easements acquired by the public at large for access through or use of property within the proposed subdivision, or the design of the alternate easements which are substantially equivalent to those previously acquired by the public will be provided; The required right-of-way easements, including the future Western Bypass and Cherry Street alignments. are included on the Tentative Tract Map (TTM 35181). The City has reviewed these easements and the design of alternate easements. and determined the type of improvements will not conflict with the easements acquired by the public at large for access through or use of property within the proposed subdivision. H. The subdivision is consistent with the City's parkland dedications requirements (Quimby); The subdivision is consistent with the dedication requirement. Section 3. Aooroval. The City Council hereby approves Planning Application No. PA06-0370 consisting of a Tentative Tract Map to subdivide an approximate 84- acre site into five parcels located at the northwest corner of Dendy Parkway and Winchester Road (RN 909-370-018 and 909-370-032). Section 4. Certification. The City Clerk shall certify to the adoption of this Resolution. This Resolution shall take effect upon its adoption PASSED, APPROVED, AND ADOPTED by the City Council of the City of Temecula this 25th day of September , 2007. Chuck Washington, 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. 07- was duly and regularly adopted by the City Council of the City of Temecula at a meeting thereof held on the 25th day of September , 2007, by the following vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: ABSTAIN: COUNCIL MEMBERS: Susan W. Jones, MMC City Clerk RESOLUTION NO. 07- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA APPROVING A DEVELOPMENT PLAN TO CONSTRUCT A THREE-STORY, 608,934 SQUARE FOOT INDUSTRIAL DISTRIBUTION BUILDING ON AN APPROXIMATE 32-ACRE SITE GENERALLY LOCATED AT THE NORTHWEST CORNER OF DENDY PARKWAY AND WINCHESTER ROAD, AND A MINOR EXCEPTION TO ALLOW FOR A ONE PERCENT BUILDING HEIGHT INCREASE FROM 50' TO 50'8" (APN 909-370-018 AND 909-370-032) PLANNING APPLICATIONS NO. PA06-0369 AND PA07-0090 THE CITY COUNCIL OF THE CITY OF TEMECULA DOES HEREBY RESOLVE AS FOLLOWS: Section 1. Procedural Findinas. The City Council of the City of Temecula finds and determines that: A. On September 5, 2007, the Planning Commission recommended that the City Council approve Planning Applications No. PA06-0369 and PA07-0090 that consists of a Development Plan with a Minor Exception to construct a three-story, 608,934 square foot industrial distribution building on an approximate 32-acre site generally located at the northwest corner of Dendy Parkway and Winchester Road, and a Minor Exception to allow for a one percent building height increase from 50' to 50'8" (APN 909-370-018 and 909-370-032) (the "Development Plan"). B. The Development Plan was processed in the time and manner prescribed by State and local law. C. On September 5, 2007, the Planning Commission held 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 of or in opposition to the Development Plan. D. At the conclusion of the Commission hearing and after due consideration of the testimony, the Commission recommended that the City Council approve the Development Plan. E. On September 25, 2007, the City Council held a duly noticed public hearing on the Development Plan 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 the Development Plan. F. On September 25, 2007 the City Council adopted Resolution No. 2007- entitled: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA APPROVING A MITIGATED NEGATIVE DECLARATION FOR THE TEMECULA PROPERTIES LLC/PROFESSIONAL HOSPITAL SUPPLY PROJECT ON AN 84-ACRE SITE LOCATED AT THE NORTHWEST CORNER OF DENDY PARKWAY AND WINCHESTER ROAD AS A FUTURE SPECIFIC PLAN AREA (APN 909-370-018 AND 909-370-032) WHICH CONSISTS OF PLANNING APPLICATIONS NO. PA07-0048, A GENERAL PLAN AMENDMENT, PA07-0220, A DEVELOPMENT AGREEMENT; PA06-0370, A TENTATIVE MAP, AND PA06-0369 AND PA07-0090, A DEVELOPMENT PLAN WITH A MINOR EXCEPTION." G. At the conclusion of the City Council hearing and after due consideration of the testimony and the administrative record, the City Council adopted this Resolution. H. All legal preconditions to the adoption of this Resolution have occurred. Section 2. Further Findinas. The City Council, in approving the Development Plan and Minor Exception hereby finds, determines and declares that: Develooment Plan IDevelooment 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; The project is consistent with the General Plan and the Development Code because the project has been designed in a manner that it is consistent with the applicable policies and standards for light industrial development. The proposed industrial use is permitted in the land use designation standards contained in the General Plan and Development Code. The site is properly planned and zoned. and as conditioned. is physically suitable for the type of development proposed. The project. as conditioned. is also consistent with other applicable requirements of State law and local ordinances, including the California Environmental Quality Act (CEQA), the Citywide Design Guidelines, and 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 project, including site design, building height, setbacks, parking, circulation, and other associated site improvements is intended to protect the health and safety of those working in and around the site. The project is consistent with all applicable policies. guidelines. standards and regulations intended to ensure that the development will be constructed. and function in a manner consistent with the public health. safety. and welfare. Soecial Use Reaulations and Standards, Increase in Floor Area Ratio IDevelooment Code Section 17.08.050.A.2) A. The project includes a use which provides outstanding and exceptional benefits to the City with respect to the employment, fiscal, social and economic needs of the community; The project provides exceptional fiscal and economical benefits to the City in that Professional Hospital Supply (PHS) is a major employer within the City, as well as a large generator of sales tax revenue. PHS has experienced substantial growth and their continued growth and expansion within the City will help to meet the fiscal and economic needs of the community. The proposed expansion site requires a four percent floor area ratio increase for a state of the art distribution facility and office headquarters large enough to accommodate future growth of PHS operations. Minor Exceotion IDevelooment Code Section 17.03.060.0\ A. There are practical difficulties or unnecessary hardships created by strict application of the code due to the physical characteristics of the site; There are practical difficulties related to the building construction and architecture that make it difficult to meet the development standards for the Light Industrial (LI) zone without the Minor Exception. In order to provide an appropriate ceiling height for each of the office floors and visually screen roof top equipment the cornice along the office portion of the building must be 50'8" in height. thus requiring a one percent building height increase to meet the development standards of the LI zone. Without the granting of the Minor Exception the building would not meet the current standards, which poses a practical difficulty and unnecessary hardship. B. The Minor Exception does not grant special privileges which are not otherwise available to surrounding properties and will not be detrimental to the public welfare or the property of other persons located in the vicinity; The Minor Exception does not grant special privileges which are not otherwise available to surrounding properties because the exception is consistent with Development Code. which allows for up to a 15 percent deviation from the LI development standard. The request for the Minor Exception allows for the one percent height increase of 8" and special privileges have not been granted which are not otherwise available by meeting the findings within the Development Code. The granting of this exception will not be detrimental to the public welfare or property of other persons within the vicinity as the height increase is only for the office portion of the building. which is only 14 percent of the entire building footprint. C. The Minor Exception places suitable conditions on the property to protect surrounding properties and does not permit uses which are not otherwise allowed in the zone; The Minor Exception to increase the building height places suitable conditions on the property to protect surrounding properties. The proposed project is for an industrial building, which is permitted in the Light Industrial zone. The Minor Exception will allow a one percent height increase. which will not allow for uses which are not otherwise allowed in the zone. Section 3. Aooroval. The City Council hereby approves Planning Applications No. PA06-0369 and PA07-0900 consisting of a Development Plan with a Minor Exception to construct a three-story, 608,934 square foot industrial distribution building on an approximate 32-acre site generally located at the northwest corner of Dendy Parkway and Winchester Road, and a Minor Exception to allow for a one percent building height increase from 50' to 50'8" (RN 909-370-018 and 909-370-032). Section 4. Certification. The City Clerk shall certify to the adoption of this Resolution. This Resolution shall take effect upon its adoption. PASSED, APPROVED, AND ADOPTED by the City Council of the City of Temecula this 25th day of September , 2007. Chuck Washington, 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. 07- was duly and regularly adopted by the City Council of the City of Temecula at a meeting thereof held on the 25th day of September , 2007, by the following vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: ABSTAIN: COUNCIL MEMBERS: Susan W. Jones, MMC City Clerk ORDINANCE NO. 07- AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TEMECULA APPROVING A DEVELOPMENT AGREEMENT BETWEEN TEMECULA PROPERTIES, LLC, PROFESSIONAL HOSPITAL SUPPLY, INC., AND THE CITY OF TEMECULA FOR AN APPROXIMATE 84- ACRE SITE GENERALLY LOCATED AT THE NORTHWEST CORNER OF DENDY PARKWAY AND WINCHESTER ROAD IN THE CITY OF TEMECULA (APN 909-370-018 AND 909-370-032) PLANNING APPLICATION NO. PA07 -0220 THE CITY COUNCIL OF THE CITY OF TEMECULA DOES HEREBY ORDAIN AS FOLLOWS: Section 1. Procedural Findinas. The City Council of the City of Temecula finds and determines that: A. On September 5, 2007, the Planning Commission recommended that the City Council approve Planning Application No. PA07-0220, a Development Agreement between Temecula Properties LLC, Professional Hospital Supply, Inc, and the City of Temecula for an 84-Acre site located at the northwest corner of Dendy Parkway and Winchester Road as a Future Specific Plan Area (APN 909-370-018 and 909-370-032) (the "Development Agreement"). B. The Development Agreement was processed in the time and manner prescribed by State and local law. C. On September 5, 2007, the Planning Commission held 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 of or in opposition to the Development Agreement. D. At the conclusion of the Commission hearing and after due consideration of the testimony, the Commission recommended that the City Council approve the Development Agreement. E. On September 25, 2007, the City Council held a duly noticed public hearing on the Development Agreement 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 the Development Agreement. F. On September 25, 2007 the City Council adopted Resolution No. 2007- entitled: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA APPROVING A MITIGATED NEGATIVE DECLARATION FOR THE TEMECULA PROPERTIES LLC/PROFESSIONAL HOSPITAL SUPPLY PROJECT ON AN 84-ACRE SITE LOCATED AT THE NORTHWEST CORNER OF DENDY PARKWAY AND WINCHESTER ROAD AS A FUTURE SPECIFIC PLAN AREA (APN 909-370-018 AND 909-370-032) WHICH CONSISTS OF PLANNING APPLICATIONS NO. PA07-0048, A GENERAL PLAN AMENDMENT, PA07-0220 A DEVELOPMENT AGREEMENT; PA06-0370, A TENTATIVE MAP, AND PA06-0369 AND PA07-0090, A DEVELOPMENT PLAN WITH A MINOR EXCEPTION." F. Following due consideration of the testimony received at the public hearings and the administrative record, the City Council adopted this Ordinance. G. All legal preconditions to the adoption of this Ordinance have occurred. Section 2. Further Findinas. The City Council hereby finds and determines that: A. The Development Agreement is consistent with the objectives, policies, general land uses, and programs specified in the City of Temecula General Plan and each of its elements in that the Development Agreement makes reasonable provision for the use of certain real property for industrial, commercial and residential development. B. The Development Agreement complies with the goals and objectives of the Circulation Element of the General Plan, and the traffic impacts of the development will be less than significant or substantially mitigated by the mitigation measures and Conditions of Approval imposed. C. The Project subject to the Development Agreement is compatible with the uses authorized in, and the regulations prescribed for the zoning district in which the property subject to the Development Agreement is located, and that this Development Agreement is consistent with good planning practices by providing for the opportunity to develop the property consistent with the General Plan. D. The Development Agreement is in conformity with the public convenience, general welfare, and good land use practice because it makes reasonable provision for a balance of land uses compatible with the remainder of the City. E. The Development Agreement will not be detrimental to and will promote the health, safety, or general welfare of the community because it provides adequate assurances for the protection thereof. F. The benefits that will accrue to the people of the City of Temecula from this legislation and this Development Agreement are expansion of an important local employer that could bring additional employment opportunities to local residents. G. The potential significant impacts to the environment from the project will be mitigated to a less than significant level based upon the identified mitigation measures. Section 3. Approval The City Council of the City of Temecula hereby approves that certain agreement entitled "Development Agreement Temecula Properties, LLC" by and between the City of Temecula, Temecula Properties LLC, and Professional Hospital Supply, Inc. ("Development Agreement"), in substantially the form attached hereto as Exhibit A, with such changes to the Development Agreement as may be mutually agreed upon by Temecula Properties, LLC, Professional Hospital Supply and the City Manager and which are in substantial conformance with the form of such Development Agreement attached hereto. The Mayor is hereby authorized to execute the Development Agreement, including related exhibits and attachments on behalf of the City. A copy of the final Agreement when executed by the Mayor and the other parties shall be placed on file in the Office of the City Clerk. Section 4. Authoritv of Citv Manaaer. The City Manager (or his designee), is hereby authorized, on behalf of the City, to take all actions necessary and appropriate to carry out and implement the Development Agreement and to administer the City's obligations, responsibilities and duties to be performed under the Development Agreement, including but not limited to, approval and execution on behalf of the City of acceptances, certificates, certificates of completion and such other implementing agreements and documents as contemplated, necessary or described in the Development Agreement. Section 5. Certification. The City Clerk shall certify to the adoption of this Resolution. This Resolution shall take effect upon its adoption. PASSED, APPROVED, AND ADOPTED by the City Council of the City of Temecula this 25th day of Sept ember, 2007. Chuck Washington, 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 Ordinance No. 07- was duly introduced and placed upon its first reading at a meeting of the City Council of the City of Temecula on the 25th day of September, 2007, and that thereafter, said Ordinance was duly adopted by the City Council of the City of Temecula at a meeting thereof held on the 25th day of September, 2007, by the following vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: ABSTAIN: COUNCIL MEMBERS: Susan W. Jones, MMC City Clerk RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: City of Temecula 43200 Business Park Drive P.O. box 9033 Temecula, California 92589-9033 Attn: City Clerk Exempt from recording fees pursuant to Govt. Code Section 27383 (Space above for recorder's use) DEVELOPMENT AGREEMENT TEMECULA PROPERTIES, LLC THIS DEVELOPMENT AGREEMENT (the "Agreement") is entered into as of [DATE], by and between the TEMECULA PROPERTIES, LLC, a California limited liability company (hereinafter "OWNER"), PROFESSIONAL HOSPITAL SUPPLY, INC., a California corporation (hereinafter "PHS"), and the CITY OF TEMECULA, a municipal corporation, organized and existing under the laws of the State of California (hereinafter "CITY"), pursuant to the authority of Sections 65864 through 65869.5 of the California Government Code (the "Development Agreement Legislation") and Article XI, Section 2 of the California Constitution. RECIT ALS This Agreement is predicated upon the following facts: A. These Recitals refer to and utilize terms that are separately defined by Section 1 or by other Sections of this Agreement. It is the intent of the parties that these words shall have the same meaning in these Recitals as they do in the Agreement. B. The Development Agreement Legislation authorizes the CITY to enter into binding development agreements with persons having legal or equitable interests in real property for the development of such property for the following purposes: 1. Ensuring high quality development in accordance with comprehensive plans; 2. Reducing uncertainty in the development approval process that might otherwise result in a waste of resources, discourage investment, and escalate the cost of development to the consumer; 3. Strengthening the CITY's comprehensive planning process to provide for the most efficient use of public and private resources by encouraging private participation in the comprehensive planning process; 946783.6 Final 9/18/07 1 4. Assuring owners of land that upon approval, they may proceed with their projects in accordance with defined policies, rules, regulations, and conditions of approval; and 5. Providing for the financing and/or construction of necessary public facilities. C. In addition to the general purposes stated above, the following are among the considerations supporting this Agreement: 1. This Agreement authorizes OWNER to develop an approximately eighty- four (84) acre property located within the CITY of Temecula, the County of Riverside, State of California (the "Property"), described in Exhibit "A" with a potential mixture of industrial, commercial retail, office, high density residential, and public institutional facility uses, as further defined in this Agreement. 2. This Agreement will provide for both parties: (a) a high quality development on the Property subj ect to this Agreement; (b) certainty in the type of development to be undertaken on the Property; and (c) the assurance of adequate public facilities to ensure the good of the community regardless of the CITY's legal authority to impose such requirements under constitutional or statutory authority. 3. For the CITY, this Agreement serves to provide for: (a) employment growth anticipated to result from the Development of the Property, both during construction and use; (b) an increase in tax revenues anticipated to result from the Development of the Property; and (c) the achievement of the goals and directives of its General Plan. 4. The development of new commercial facilities and offices is an integral part of OWNER's development plans for the Property. Such facilities are expected to bring employment and generate sales tax revenue for the CITY. 5. OWNER will co-operate in facilitating the Western By-Pass. The CITY is planning for the design, financing, and construction ofthe Western By-Pass. At this time the CITY contemplates, but has not approved, a financing mechanism, such as but not limited to an assessment district or a community facilities district, by which the Western By-Pass will be funded with Transportation Uniform Mitigation Fees ("TUMF") and grant funds and the properties benefited by the Western By-Pass would pay their fair share of the costs not covered by TUMF or grant funds with credits for appropriate TUMF contributions. OWNER obligations under applicable law will require a substantial payment ofTUMF. Any provision of this Agreement to the contrary notwithstanding, this Agreement does not impose any duty upon OWNER to vote in favor of or join in the formation of a community facilities district or similar entity for financing all or any part of the Western By-Pass. In the event ofthe formation of a community facilities district or similar entity that includes the Property for financing all or any part of the Western By-Pass, OWNER shall receive credits against its obligation to pay TUMF and/or other fees and/or assessments related to transportation. In the event OWNER has previously thereto paid TUMF fees and the Property becomes subject to the payment of special assessments or similar impositions by virtue of being included in a community facilities district or similar financing entity, then OWNER shall be entitled to a credit against any such special 946783.6 Final 9/18/07 2 assessments and/or similar impositions in the amount of the said TUMF fees previously paid on account of the Property. D. OWNER desires to develop the Property in accordance with the provisions of this Agreement, the Applicable Regulations, and those other agencies exercising jurisdiction over the Property. E. OWNER has applied for, and the CITY has approved, this Agreement in order to create beneficial development of the Property and a physical environment that will conform to and complement the CITY's goals, create development sensitive to human needs and values, facilitate efficient traffic circulation, and otherwise provide for the development of the Property in accordance with the best interests ofthe CITY. F. Project: The following actions have been taken with respect to this Agreement and the 1. On September 4, 2007, following a duly noticed and conducted public hearing, the CITY Planning Commission recommended that the CITY Council approve this Agreement; 2. On September 25, 2007 after a duly noticed public hearing and pursuant to the California Environmental Quality Act of 1970, as amended, ("CEQA") the CITY Council adopted Resolution 2007-_ approving the Mitigated Negative Declaration for the Project Approvals, this Agreement, and the Proj ect; 3. On September 25,2007, following a duly noticed public hearing, the City Council introduced Ordinance No. 2007- and on October 9,2007 held the second reading and adopted Ordinance No. 2007- approving this Agreement, a copy of which is on file in the CITY Clerk's Office at the CITY, which ordinance includes the findings pertaining thereto, including those relating to the CEQA documentation for the Project and this Agreement's consistency with the CITY's General Plan and each element thereof and any specific plans relating to the property. 4. On September 25,2007, after a duly noticed public hearing, the City Council adopted to following resolutions approving certain entitlements for the Project (the "Project Approvals"): (1) Resolution No. 07-_ approving Planning Application No. PA07- 0048 General Plan Amendment; (2) Resolution No. 07- approving Planning Application No. 06-370 Tentative Tract Map TTM 35181; (3) Resolution No. 07- approving Planning Application No. PA06-0369 Development Plan; (4) Resolution No. 07- approving Planning Application No. PA07-0090 Minor Exception. G. The CITY has engaged in extensive studies and review of the potential impacts of the Project as well as the various potential benefits to the CITY by the Development of the Project and has concluded that the Project is in the best interests of the CITY. H. In consideration of the public improvements and beneficial uses of the Property to be provided by OWNER for the CITY and in order to strengthen the planning process for this Property and reduce the economic costs of development, by this Agreement, the CITY intends to 946783.6 Final 9/18/07 3 give OWNER assurance that OWNER can proceed with the Development of the Property for the Term of this Agreement pursuant to the terms and conditions of this Agreement and in accordance with the Project Approvals and CITY's Applicable Regulations. In reliance on the CITY's covenants in this Agreement concerning the Development of the Property, OWNER has and will in the future incur substantial costs in site preparation and the construction and installation of major infrastructure and facilities in order to make Development ofthe Property feasible. 1. Pursuant to Section 65867.5 of the Development Agreement Legislation, the CITY Council has found and determined that: (i) this Agreement implements the goals and policies of the CITY's General Plan, provides balanced and diversified land uses, and imposes appropriate standards and requirements with respect to land development and usage in order to maintain the overall quality oflife and the environment within the CITY; (ii) this Agreement is in the best interests of and not detrimental to the public health, safety and general welfare of the CITY and its residents; (iii) adopting this Agreement is consistent with the CITY's General Plan, and each element thereof and any applicable specific plan, and constitutes a present exercise of the CITY's police power; and (iv) this Agreement is being entered into pursuant to and in compliance with the requirements of Government Code Section 65867 of the Development Agreement Legislation. J. OWNER and Professional Hospital Supply, Inc. ("PHS") have entered into an agreement providing for the lease of the PHS Property to PHS (as defined in Section 1.14) along with an option for PHS to purchase the PHS Property from OWNER for the development of the PHS Facility. A memorandum of this agreement is recorded in the Riverside County Recorder's Office as Document No. 2007- AGREEMENT NOW, THEREFORE, pursuant to the authority contained in the Development Agreement Legislation, as it applies to the CITY, pursuant to Article XI, Section 2 of the California Constitution, and in consideration of the foregoing recitals of fact, all of which are expressly incorporated into this Agreement, the mutual covenants set forth in this Agreement and for the further consideration described in this Agreement, the parties agree as follows: 1. Definitions. The following words and phrases are used as defined terms throughout this Agreement and each defined term shall have the meaning set forth below. No. 2007- Agreement. 1.1. Authorizing Ordinance. The "Authorizing Ordinance" means Ordinance adopted by the CITY on , 2007 approving this 1.2. Applicable Regulations. The phrase "Applicable Regulations" is defined in Section 3.1.2 below. 1.3. CITY. The "CITY" means the City of Temecula, a California municipal corporation, duly organized and existing under the Constitution and laws of the State of California, and all of its officials, employees, agencies and departments. 946783.6 Final 9/18/07 4 1.4. CITY Council. "CITY Council" means the duly elected and constituted CITY Council of the CITY. 1.5. Develooment. "Development" means the improvement of the Property for purposes consistent with this Agreement, including, without limitation: grading, the construction of infrastructure and public facilities related to the Off-Site Improvements and on-site improvements, the construction of structures and buildings and the installation of landscaping. 1.6. Develooment Agreement Legislation. The "Development Agreement Legislation" means Sections 65864 through 65869.5 of the California Government Code as it exists on the Effective Date. 1.7. Effective Date. "Effective Date" means the date that the Agreement becomes effective in accordance with Section 2.3.1, below. 1.8. Future Develooment Aoorovals. "Future Development Approvals" means those entitlements and approvals contemplated, necessary, and requested by the CITY or OWNER to cause development to occur upon the Property after the Effective Date. 1.9. Off-Site Imorovements. "Off-Site Irllprovements" means the improvements set forth on Exhibit B. 1.10. OWNER. "OWNER" shall mean TEMECULA PROPERTIES, LLC, a California limited liability company, and all successors in interest, in whole or part, to this entity with respect to that portion of the Property other than the PHS Property, and PROFESSIONAL HOSPIT AL SUPPLY, INC. and all successors in interest, in whole or part, to this entity with respect to the PHS Property. 1.11. Intentionallv Omitted 1.12. PHS "PHS" shall mean Professional Hospital Supply, Inc. 1.13 PHS-Related Transferee "PHS-Related Transferee" shall mean an affiliated entity of PHS nominated to hold the PHS Property for the use and development of the business of PHS. 1.14. PHS Property. "PHS Property" shall mean the approximately 36.96 acres of the Property which OWNER has leased to PHS with an option to purchase and which is further described and depicted on Exhibit C, and more particularly described as Lot 4 of Tentative Tract Map No. 35181. 1.15. Proiect. "Project" shall mean Development of the Property for industrial, commercial, retail, offices, high-density residential and public institutional facility uses in accordance with the Project Approvals and this Agreement, inclusive ofthe permitted uses and regulations set forth herein. 1.16. Proiect Aoorovals. The phrase "Project Approvals" as used herein shall mean all City approvals, entitlements, or both pertaining to the Project, including without 946783.6 Final 9/18/07 5 limitation, the following resolutions approving certain entitlements for the Project: (1) Resolution No. 07-_ approving Planning Application No. PA07-0048 General Plan Amendment; (2) Resolution No. 07- approving Planning Application No. 06-370 Tentative Tract Map TTM 35181; (3) Resolution No. 07- approving Planning Application No. P A06- 0369 Development Plan; (4) Resolution No. 07- approving Planning Application No. PA07- 0090 Minor Exception.. The Parties will cooperate in good faith in the adoption of a Planned Development Ordinance if and when the OWNER applies for the same. 1.17. Prooertv. "Property" shall mean the property depicted and described in Exhibit A. 1.18. Public Imorovements. "Public Improvements" shall mean the Off-Site Improvements described on Exhibit B. 1.19. Transferee. The person to whom the OWNER sells, assigns or otherwise transfers all or any portion of OWNER's interests in the Property together with all its right, title and interest in this Agreement in accordance with Section 2.5 ofthis Agreement. 1.20. Western Bv-Pass. "Western By-Pass" shall mean that road described on Exhibit E. 2. General Provisions. 2.1. Binding Covenants. The provisions of this Agreement, to the extent permitted by law, constitute covenants that shall run with the Property for the benefit thereof, and the benefits and burdens of this Agreement shall bind and inure to the benefit of the parties and all successors in interest to the parties hereto. 2.2. Interest of OWNER. OWNER represents that OWNER has a legal or equitable interest in the Property that satisfies California Government Code Section 65865(b). 2.3. Term. This Agreement shall become effective on the Effective Date, and shall have a term (the "Term") often (10) consecutive calendar years, commencing upon the issuance by the CITY of a Certificate of Occupancy for the building to be constructed on the PHS Property, subject to specific extensions, revisions, and termination provisions of this Agreement. When the Term has been determined, the parties shall execute and record an Operating Memorandum pursuant to Section 2.6.4 of the Agreement that will confirm the Term. The termination of this Agreement pursuant to this Section shall not affect any right or duty arising independently from entitlements issued by the CITY or other land use approvals approved prior to, concurrently or subsequent to the approval of this Agreement, except as may be provided in this Agreement. The zoning of the Property at the time of termination pursuant to this Section shall be the zoning in effect at the time of termination. 2.3.1 Effective Date. This Agreement shall become effective only after both: (1) the Authorizing Ordinance becomes effective; and (2) the OWNER either sells the PHS Property to PHS or leases the PHS Property to PHS for a term of not less than eight years. The Effective Date shall be the date on which the later of these two events occurs. When the parties 946783.6 Final 9/18/07 6 determine the Effective Date, they shall execute and record an Operating Memorandum pursuant to Section 2.6.4 of the Agreement confirming the Effective Date. 2.4. Termination. This Agreement may be terminated by either party upon notice to the other upon the occurrence of any of the following events: (I) if termination occurs pursuant to any specific provision of this Agreement; or (2) entry after all appeals have been exhausted of a final judgment or issuance of a final order directed to the CITY as a result of any lawsuit filed against the CITY to set aside, withdraw, or abrogate the approval of the CITY Council of this Agreement for any part of the Project. The termination of this Agreement pursuant to this Section shall not affect any right or duty arising independently from entitlements issued by the CITY or other land use approvals approved prior to, concurrently or subsequent to the approval ofthis Agreement, except as may be provided in this Agreement. The zoning of the Property at the time of termination pursuant to this Section shall be the zoning in effect at the time of termination. 2.5. Transfers and Assignments. 2.5.1. Restrictions on Transfers. With the exception of the sale or lease of the PHS Property to PHS required for this Agreement to go into effect, OWNER shall not sell, assign, or otherwise transfer all or any portion of its interests in the Property together with all its right, title and interest in this Agreement, or the portion thereof which is subject to the transferred portion of the Property, to any Transferee until such time as the Public Improvements have been accepted by the CITY Council unless the CITY has approved the transfer prior to its completion. CITY shall not umeasonably withhold or unreasonably delay consent to the transfer provided that: (1) the Transferee has specifically assumed in writing the obligations, or a portion of the obligations of the OWNER, to design, construct, install and finally complete the Public Improvements for the Property; (2) the Transferee has the experience and financial capacity to complete the Public Improvements; and (3) the Transferee has obtained replacement bonds, accepted by the CITY for the Public Improvements (in which event, the City shall release the OWNER's corresponding Public Improvement bonds). In the event of any sale, assignment, or other transfer pursuant to this Section 2.5, (i) OWNER shall notify the CITY within twenty (20) days prior to the transfer of the name of the Transferee, together with the corresponding entitlements being transferred to such Transferee and (ii) the agreement between OWNER and Transferee pertaining to such transfer shall provide that the Transferee shall be liable for the performance of those obligations of OWNER under this Agreement which relate to the Transferred Property, if any, or shall confirm that the OWNER and all Transferees shall remain jointly liable for the design and construction of Public Improvements pursuant to this Agreement. 2.5.2. Rights and Duties of Successors and Assigns. Any, each and all successors and assigns of OWNER shall have all of the same rights, benefits, duties and obligations of OWNER under this Agreement. All entities holding title to a portion of the Property shall be jointly liable for the design and construction of the Public Improvements for that portion of the Property as set forth in this Agreement, except as provided in this Agreement or as may be modified in an Operating Memorandum pursuant to Section 2.6.4. Notwithstanding this Section or any other provisions of this agreement, no Transferee of the PHS Property shall be responsible for the design or construction of any Public Improvements (or any portion 946783.6 Final 9/18/07 7 thereof) except those that bear a direct relationship, i.e., "nexus" to the Development of the PHS Property. 2.6. Amendment of Develooment Agreement. 2.6.1. Initiation of Amendment. Any party may propose an amendment to this Agreement and both parties agree that it may be beneficial to enter into additional agreements or modifications of this Agreement in connection with the implementation of the separate components of the Project. 2.6.2. Procedure. Except as set forth in Section 2.6.4 below, the procedure for proposing and adopting an amendment to this Agreement shall be the same as the procedure required for entering into this Agreement in the first instance. 2.6.3. Consent. Except as expressly provided in this Agreement, any amendment to this Agreement shall require the written consent of both parties. No amendment to all or any provision of this Agreement shall be effective unless set forth in writing and signed by duly authorized representatives of each of the parties. 2.6.4. Ooerating Memoranda. The parties acknowledge that refinements and further Development of the Project may demonstrate that changes are appropriate with respect to the details and performance of the parties under this Agreement. The parties desire to retain a certain degree of flexibility with respect to those items covered in general terms under this Agreement. If and when the parties mutually find that changes, adjustments, or clarifications are appropriate to further the intended purposes of this Agreement, they may, unless otherwise required by law, effectuate such changes, adjustments, or clarifications without amendment to this Agreement through one or more operating memoranda mutually approved by the parties, which, after execution, shall be attached hereto as addenda and become a part hereof and may be further changed and amended from time to time as necessary, with further approval on behalf of the CITY by the CITY Manager, or such person designated in writing by the CITY Manager, and by any corporate officer or other person designated for such purpose in a writing signed by a corporate officer on behalf of OWNER. Unless otherwise required by law or by this Agreement, no such changes, adjustments, or clarifications shall require prior notice or hearing, public or otherwise. 2.7. Term ofMao(s) and Other Proiect AODrovals. Pursuant to California Government Code Sections 66452.6(a) and 65863.9, the term of any subdivision or parcel map that has been or in the future may be processed for all or any portion of the Property and the term of each of the Project Approvals shall be deemed extended without further required action for a period of time through the scheduled termination date of this Agreement as set forth in Section 2.3 above if such map or Project Approval would otherwise have expired prior thereto. 2.8. Amendments to Proiect Aoorovals. It is contemplated by CITY and OWNER that OWNER may, from time to time, seek amendments to one or more ofthe Project Approvals. Any such amendments are contemplated by CITY and OWNER as being within the scope of this Agreement as long as they are consistent with the Applicable Regulations and shall, upon approval by CITY, continue to constitute the Project Approvals as referenced herein. The 946783.6 Fina19/18/07 8 parties agree that any such amendments shall not constitute an amendment to this Agreement nor require an amendment to this Agreement. 2.9. Infrastructure Phasing Flexibilitv. Notwithstanding the provisions of any phasing requirements in the Project Approvals, OWNER and CITY recognize that economic and market conditions may necessitate changing the order in which the infrastructure is constructed so long as the modification continues to ensure adequate infrastructure is available to serve that portion of the Project being developed. Therefore, CITY and OWNER hereby agree that should it become necessary or desirable to develop any portion of the Project's infrastructure in an order that differs from the order set forth in the Project Approvals, OWNER and CITY shall collaborate in a good faith effort to agree upon any reasonable modification requested by OWNER provided, however, that any modification to the order of construction of the infrastructure as provided in this Agreement and the Project Approvals shall be approved by the OWNER and CITY in an Operating Memorandum. 3. Develooment of the Prooertv. 3.1. Develooment and Control ofDevelooment. 3.1.1. Control of Develooment. While this Agreement is in effect, OWNER shall have the vested right to develop the Property pursuant to and in accordance with the Applicable Regulations pursuant to this Agreement, including, without limitation, specific uses, densities, and types of Development provided for in the Applicable Regulations, and the CITY shall have the right to control the Development in accordance with the terms and conditions ofthis Agreement, the Project Approvals and all Applicable Regulations. Except as otherwise specified in the Project Approvals and this Agreement, the Applicable Regulations shall control the design and Development, Future Development Approvals and all Off-Site Improvements and appurtenances in connection therewith. The Applicable Regulations are only those written rules, policies, ordinances, and resolutions described in Section 3.1.2.1 below. OWNER and CITY shall use reasonable efforts to compile the Applicable Regulations in a permanent written form, which shall be kept on file in the Office of the CITY Clerk with a copy to each party. 3.1.2. Aoolicable Regulations. The regulations applicable to the Development of the Property shall consist of the following requirements ("Applicable Regulations"). 3.1.2.1. General Develooment Regulations. Except as otherwise specified in this Agreement, the ordinances, rules, regulations and official policies governing the permitted uses of the Property, including but not limited to the permitted density and intensity of use, provisions for reservation or dedication of land for public purposes, and the design, improvement, and construction standards and specifications applicable to Development of the Property shall be those ordinances rules, regulations, and official policies as they exist on the Effective Date. 3.1.2.2. Uses. OWNER shall develop the Property for industrial, commercial, retail, high-density residential, and public institutional facility uses, in 946783.6 Final 9/18/07 9 accordance with the specific matrix of permitted uses set forth in Exhibit "F" attached hereto. No other uses shall be allowed on the Property unless otherwise authorized by this Agreement, the Project Approvals, or the Applicable Regulations. 3.1.2.3. Multi-Familv Parcel- Affordable Housing. The following affordable housing requirements shall be applicable to the "Multi-Family Parcel" (as designated hereinafter): 1. Multi-Familv Parcel. Any multi-family residential uses on the 12 acre parcel on the east side of the Property, as described on Exhibit F ("Multi- family Parcel"), shall include an affordable housing component in accordance with this Section. 2. For Sale/For Rent - Moderate Income Requirements. Not less than twenty percent (20%) of the units developed in each phase of Development of the Multi-family Parcel shall be restricted for sale at Affordable Housing Cost to Persons or Families of Moderate Income or for rent to Persons or Families of Moderate Income at Affordable Rent. 3. Term of Affordable Housing Requirements. The affordable housing requirements for each unit on the Multi-family Parcel shall be in effect for a period of not less than fifty-five (55) years from the date of the certificate of occupancy for the unit. 4. Regulatorv Agreement. The restrictions set forth in this Section as well as the means to implement this Section, including, but not limited to, designation of the affordable housing units, marketing and outreach procedures, procedures for verifying qualified buyers or renters, restrictions on subsequent sales and rentals, lender consent and subordination, and other necessary implementation provisions shall be set forth in a Regulatory Agreement approved by the CITY and OWNER and which Regulatory Agreement shall be recorded prior to the issuance of the first building permit for the Multi-family Parcel. 5. Definitions. "Persons or Families of Moderate Income" shall be defined for the purposes of this Agreement as such term is defined in Section 50093 of the California Health and Safety Code or its successor statute. "Affordable Housing Cost" shall be defined for the purposes of this Development Agreement as such term is defined in Section 50052.5 of the California Health and Safety Code or its successor statute. "Affordable Rent" shall be defined for the purposes of this Agreement as such term is defined in Section 50053 of the California Health and Safety Code or its successor statute. 3.1.2.4. Uniform Building Codes. Development of the Property shall be subject to such uniform building codes and fire codes as may be adopted by the CITY pursuant to Chapter 15.04 and 15.16 of the Temecula Municipal Code, in effect as ofthe date the building plans are submitted to the CITY for plan check and approval of the building permit. 946783.6 Final 9/18/07 10 3.1.2.5 Floor Area Ratio for PHS Property The Floor Area Ratio for the PHS Property shall not exceed forty- five percent (45%). This Section 3.1.2.5 shall be effective only upon the close of escrow of a sale or lease of the PHS Property to PHS or a PHS-Related Transferee. If the PHS Property is not sold or leased to PHS or a PHS-Related Transferee, then the provisions of the Temecula Municipal Code on the effective date of this Agreement pertaining to floor area ratios shall govern the PHS Property 3.1.2.6. Final Map Approval OWNER agrees the CITY shall not be required to approve the Final Map for Tentative Map No. 35181 in the event that the OWNER fails to meet or perform any or all of the material requirements of this Agreement pertaining to the physical development of the Property. 3.1.2.7 Limitation on PHS Property Vested Rights The parties agree that the public benefits of this Agreement to the CITY which enhance the public health, safety and welfare are dependent on a successful conveyance of the PHS Property to PHS or a PHS-Related Transferee for the development and operation of a facility for PHS's business. The parties further agree that it is the particular uses of the PHS Property as a facility for PHS's business that justifies the modifications to current zoning and subdivision standards for the PHS Property as provided in this Agreement. Therefore, the parties agree that the rights to develop the PHS Property in accordance with the requirements for Lot 4 of Tentative Tract Map No. 35181 shall become vested rights under this Agreement only upon and conditioned upon the closing ofthe sale or lease of the PHS Property to PHS or a PHS-Related Transferee for the development of PHS's Temecula Facility as described in the Deferral Agreement. In the event the OWNER seeks to develop the PHS Property for a user other than PHS's Temecula Facility, the CITY shall have the right to condition the Future Development Approvals for the non-PHS development with such conditions related to slopes and access points as the CITY deems appropriate even if such conditions may be inconsistent with the slopes and access points for the PHS Property as shown on that portion of Tentative Map No. 35181 designated as Lot 4. 3.1.2.8. Subsequent Approvals. In connection with any Future Development Approval or action which the CITY is permitted or has the right to make under this Agreement relating to the Project, the CITY shall exercise its discretion or take action in a manner which complies and is consistent with this Agreement and such other standards, terms and conditions contained in this Agreement. Upon CITY's granting any Future Development Approval, such Future Development Approval shall become part of the Project Approvals. 3.1.2.9 Development Phasing. No building permits shall be issued for the that portion of the Property other than the PHS Property until such time as a building permit has been issued for the facilities to be constructed on the PHS Property pursuant to the Project Approvals. 3.1.3. Imoact Fees. 946783.6 Final 9/18/07 11 3.1.3.1. Develooment Imoact Fees. The presently adopted Development Impact Fees ("DIF"), as defined in Chapter 15.04 of the Temecula Municipal Code, and the rates of the DIF as set forth in Resolution No. 03-63, shall be the DIF and DIF rates to be imposed upon parcels within the Property for the entire Term during which this Agreement is in effect and shall be those rates in effect on the Effective Date. Resolution No. 03-63 is attached hereto as Exhibit G, and is hereby incorporated by reference. The DIF and the DIF rates shall apply only to the CITY's development impact fees and not to the TUMF, any similarly regional impact fees described in Section 3.1.3.2 of this Agreement or to any other development impact fees imposed by another governmental agency not under the control, directly or indirectly, of the CITY. OWNER shall be entitled to such credits as might be available pursuant to the terms of Chapter 15.04 or other provisions of the Applicable Regulations and this Agreement. 3.1.3.1.1 All persons or entities holding title or interest in any portion of the Property, including any, each, and all successors and assigns of OWNER shall be separately responsible for payment of any and all DIP for that portion of the property developed by such person or entity. Notwithstanding this Section or any other provision of this Agreement, the OWNER and any PHS-related Transferee of the PHS Property shall not be required to pay DIP related to the Development of the PHS Property, it being agreed that the payment of DIP in connection with the Development of the PHS Property by PHS shall be subject to the Deferral Agreement between the CITY and PHS and described in Section 3.1.6 of this Agreement. 3.1.3.2. TUMF Fees. The presently adopted Transportation Uniform Mitigation Fee, as defined in Chapter 15.08 ofthe Temecula Municipal Code, any future similar regional development impact fee, or any other development impact fees imposed by another governmental agency shall be imposed upon Development within the Property at the rate in effect as of the date of issuance of each building permit for the Property. OWNER shall be entitled to such credits as might be available pursuant to the terms of Chapter 15.08 or the terms of the future allowable fees. Notwithstanding this Section 3.1.3.2, any regional development impact fee that CITY has the discretion to adopt or not adopt, similar to the TUMF or other existing regional fees, shall, if adopted by CITY, not be applicable to the OWNER or the Property. 3.1.3.3. Aoolication/Processin2: Fees. OWNER shall pay the application and processing fees customarily imposed on the type of entitlement and/or permit sought at the rate, and in the amount, imposed by CITY pursuant to the fee schedule, resolution or ordinance in effect at the time the application is deemed complete and accepted by CITY for action, which fees are designed to reimburse CITY's expenses attributable to processing such applications for entitlements, permits, or both. 3.1.4. Timin2: of Develooment. Except as set forth in Agreement, regardless of any future enactment, by initiative, or otherwise, OWNER shall have the discretion to develop the Property in one phase or in multiple phases at such times as OWNER deems appropriate within the exercise of its subjective business judgment. Specifically, the CITY agrees that OWNER shall be entitled to apply for and receive permits, maps, occupancy certificates, and other entitlements to develop and use the Property at any time, provided that 946783.6 Final 9/18/07 12 such application is made in accordance with this Agreement and the Applicable Regulations. The parties hereto expressly reject the holding of Pardee Construction Company v. City of Camarillo, 37 Cal. 3d 465 (1984), as regards any authority regulating the phasing of Development and construction on the Property. 3.1.5. Permits and Aoorovals - Coooeration. CITY further agrees to reasonably cooperate with OWNER, at no cost to CITY, in securing any County, State and Federal permits or authorizations which may be required in connection with Development contemplated by OWNER, including without limitation such permits, approvals, and/or consents required by the MSHCP, as more fully set forth in Section 4.1.11, below. This cooperation shall not entail any economic contribution by the CITY. The CITY will process all land use applications, plans, maps, CEQA documents (to the extent required), permits, construction inspection and related documents expeditiously; provided, however, the CITY will not charge additional fees relating to such expeditious processing. Without limiting the foregoing, the parties agree to use their respective good faith efforts to substantially conform to the processing and approval schedule attached as Exhibit "H". 3.1.6. Concurrently with the approval of this Agreement, CITY and PHS entered into an Operating Covenant Agreement (the "Deferral Agreement"). CITY hereby recognizes that OWNER is the same party as identified as "Developer" in the Deferral Agreement and that OWNER is deemed by CITY to be a third party beneficiary of the Deferral Agreement to the extent the Deferral pertains to the Developer. Article 1.15 of the Deferral Agreement defines "Fee Waiver" as "a credit or reimbursement, as applicable, from the City to PHS or the Developer, as applicable, in the amount of Two Million Dollars ($2,000,000) towards any City fees or costs payable or reimbursable by the Developer or PHS, as applicable, including any development impact, plan check, application, environmental review, permit or similar fees and costs, regarding development of the Temecula Facility. The projected fees and amounts that will be waived by the City are set forth in Exhibit 'A' attached to this [Deferral] Agreement." Without limiting the generality of the foregoing, the parties expressly incorporate herein the provisions of Article 4.1 of the Deferral Agreement which provide "Following the Effective Date, on each date on which any City fees or reimbursable costs are payable by the Developer or PHS regarding development of the Temecula Facility, in consideration for PHS' performance of its obligations pursuant to this Agreement, the City shall credit such amount to the Developer or PHS, as applicable, until the full amount of the Fee Waiver has been credited. If the Developer or PHS pays any City fees or reimburses any City costs regarding development of the Temecula Facility prior to the Effective Date, the City shall reimburse the amount of any such payment in full to the Developer or PHS, as applicable, within fifteen (15) days following the Effective Date, and any amount so reimbursed shall be counted towards the total amount ofthe Fee Waiver." 3.2. Reserved Authoritv. 3.2.1. State and Federal Laws and Regulations. In the event that State or Federal laws or regulations prevent or preclude compliance with one or more of the provisions of this Agreement, such provisions of this Agreement shall be modified or suspended as may be necessary to comply with such State or Federal laws or regulations; provided, however, that this Agreement shall remain in full force and effect to the extent it is not inconsistent with such laws or regulations and to the extent such laws or regulations do not render such remaining provisions 946783.6 Final 9/18/07 13 impractical to enforce. Notwithstanding the foregoing, the CITY shall not adopt or undertake any regulation, program or action, or fail to take any action which is inconsistent or in conflict with this Agreement until the CITY makes a finding that such regulation, program action or inaction is required (as opposed to permitted) to comply with such State and Federal laws or regulations after taking into consideration all reasonable alternatives. 3.2.2. Reeulation for Health and Safetv. Notwithstanding anything to the contrary in this Agreement, the CITY shall have the right to apply the CITY regulations (including amendments to the Applicable Regulations) adopted by the CITY after the Effective Date, in connection with any Future Development Approvals, or deny, or impose conditions of approval on any Future Development Approvals if CITY determines that the failure of CITY to make such application or to deny, or impose conditions of approval on any future Development Approvals would place the residents or occupants of the Property or the residents of the CITY , or both, in a condition dangerous to their safety, health, or both. 3.3. Vested Riehts. By entering into this Agreement and relying thereon, OWNER is obtaining the vested rights to proceed with the Development of the Property in accordance with the terms and conditions of this Agreement. By entering into this Agreement and relying thereon, the CITY is securing certain public benefits which enhance the public health, safety and welfare, a partial listing of which benefits is set forth in Recital C above. 3.4. No Conflictine Enactments. Except as otherwise provided by this Agreement, neither the CITY Council nor any other agency ofthe CITY shall enact a rule, regulation, ordinance, or other measure (collectively "law") applicable to the Property that is inconsistent or conflicts with the terms ofthis Agreement. By way of example, any law, whether by specific reference to this Agreement or otherwise, shall be considered to conflict if it limits or reduces the density or intensity of Development as regulated by the Applicable Regulations and Project Approvals or otherwise requires any reduction or increase in the number, size, or square footage oflot(s), structures, buildings, or other improvements, except as provided in Section 3.2. 3.4.1. Moratorium. It is the intent of OWNER and the CITY that no moratorium or other limitation (whether relating to the Development of all or any part of the Project and whether enacted by initiative or otherwise) affecting parcel or subdivision maps (whether tentative, vesting tentative, or final), site development permits, precise plans, site development plans, building permits, occupancy certificates, or other entitlements to use approved, issued, or granted within the CITY, or portions of the CITY, shall apply to the Project to the extent such moratorium or other limitation would restrict OWNER's right to develop the Property as provided by this Agreement in such order and at such rate as OWNER deems appropriate as limited or regulated by this Agreement. The CITY agrees to reasonably cooperate with OWNER in order to keep this Agreement in full force and effect. In the event of any legal action instituted by a third party or other governmental entity or official challenging the validity of any provision of this Agreement, the parties hereby agree to reasonably cooperate in defending such action. In the event of any litigation challenging the effectiveness of this Agreement, or any portion hereof, this Agreement shall remain in full force and effect while such litigation, including any appellate review, is pending. The filing of any third party lawsuit(s) against CITY or OWNER relating to this Agreement, the Project Approvals or to other 946783.6 Final 9/18/07 14 development issues affecting the Property shall not delay or stop the Development, processing, or construction of the Project, unless the third party obtains a court order preventing the activity. 3.4.2. Consistency Between this Agreement and Current Laws. The CITY represents that at the Effective Date there are no rules, regulations, ordinances, policies, or other measures of the CITY in force that would interfere with the Development and use of all or any part of the Property according this Agreement. In the event of any inconsistency between any Applicable Regulation, Project Approval, and this Agreement, the provisions of this Agreement shall control. 3.5. Reimbursement. Nothing in this Agreement shall preclude CITY and OWNER from entering into any reimbursement agreements for the portion (if any) of the cost of any dedications, public facilities, infrastructure, or any of these that CITY may require as conditions of the Project Approvals, to the extent that they are in excess of those reasonably necessary to mitigate the impacts of the Project. 3.6. Acquisition of Right of Way for Off-Site Imorovements. To the extent the OWNER does not have sufficient title or interest in the real property required for the construction or installation of an Off-Site Improvement, the OWNER shall make a good faith effort to acquire the required property in a timeframe calculated to allow for the orderly Development of the Project. If, following this effort, the OWNER is unable to acquire the required property; the OWNER may request that the CITY acquire the property pursuant to the provisions of Government Code Section 66462.5. The CITY shall consider in good faith the acquisition of the required property pursuant to an agreement in accordance with the provisions of Government Code Section 66462.5. Both parties acknowledge and agree that the acquisition of real property in accordance with the California Eminent Domain Law requires more time than the suggested timeframes of Government Code Section 66462.5 allow and therefore, the parties waive these time constraints and the Agreement shall so provide. The parties further acknowledge and agree that the CITY cannot exercise its power of eminent domain unless and until a Resolution of Necessity has been duly adopted by the CITY Council pursuant to law. This Agreement is neither a commitment nor an announcement of an intent by the CITY to acquire any or all of the property required for the Off-Site Improvements. 3.7. Easements. In the event a Project Approval requires an easement to be dedicated for pedestrian use, such an easement shall be permitted to include easements for underground drainage, water, sewer, gas, electricity, telephone, cable, and other utilities and facilities so long as they do not unreasonably interfere with pedestrian use. 4. Obligations of the Parties. 4.1. Western By-Pass. The parties agree that the public benefits of this Agreement to the CITY which enhance the public health, safety and welfare are dependent on a successful conveyance of the PHS Property to PHS for the development and operation of a facility for PHS's business. The parties further agree that it is the particular uses of the PHS Property as a facility for PHS's business that justifies the modifications to current standards and funding options for the Western Bypass as provided in this Agreement for the Property and for the PHS Property. Therefore, the parties agree that the provisions of Section 4.1 of this 946783.6 Final 9/18/07 15 Agreement shall be effective only upon and conditioned upon the closing of the sale or lease of the PHS Property to PHS or a PHS-Related Transferee for the development of PHS's Temecula Facility as described in the Deferral Agreement. 4.1.1. Status of Western Bv-Pass. The CITY is planning for the design, financing, and construction of the Western By-Pass. At this time the CITY contemplates, but has not approved, a financing mechanism, such as but not limited to an assessment district or a community facilities district, by which the Western By-Pass will be funded with TUMF and grant funds and in which the properties benefited by the Western By-Pass would pay their fair share of the costs not covered by TUMF or grant funds with credits for appropriate TUMF contributions. Any provision of this Agreement to the contrary notwithstanding, no provision of this Agreement obligates OWNER, with respect to the Property, or PHS with respect to the PHS Property to vote in favor of or join in the formation of a community facilities district or similar entity for financing all or any part of the Western By-Pass. 4.1.2. ~onsent to Western Bv-Pass Financing Mechanism. Neither OWNER, with respect to the Property, nor PHS, with respect to the PHS Property, shall be required by this Agreement to consent to the establishment of a future financing mechanism, such as, without limitation, an assessment district or community facilities district, for the purposes of spreading the costs of financing construction of the Western By-Pass among those property owners who will benefit from its construction. Nothing in this Agreement, however, precludes the CITY or a related entity from initiating proceedings to form such a future financing mechanism in accordance with applicable law. 4.1.3. participation in Western Bv-Pass Financing Mechanism. Neither OWNER, with respect to the Property, nor PHS, with respect to the PHS Property, shall be required by this Agreement to participate in the future financing mechanism for the Western By- Pass except as may be required by law (and not by virtue of this Agreement). OWNER, with respect to the Property, and PHS, with respect to the PHS Property, may, however, elect to participate in the future financing mechanism for the Western By-Pass. Nothing in this Agreement, however, precludes the CITY or a related entity from initiating proceedings to form such a future financing mechanism in accordance with applicable law. 4.1.4. Construction of Western Bv-Pass as a Condition to Development. Except as provided in Section 4.1.5, CITY shall not require that actual construction of the Western By-Pass, or a portion thereof, be a condition precedent, a condition concurrent or a condition subsequent to Future Development Approvals for the Property or the PHS Property. If the City or other governmental agency designs and construct the Western By-Pass, the City or such other agency shall be responsible for all costs associated with the Western By-Pass including without limitation, roads, utilities, slopes, grading, retaining walls, and landscaping. The CITY shall be responsible for all slopes, grading and retaining walls required to construct the Western By-Pass as shown on Exhibit E. The OWNER shall be responsible for all grading, slopes, and retaining walls required to construct Parcel 2, as shown on Exhibit E. The Owner shall have the right to grade and develop Parcel 2 prior to construction of the Western By-Pass as approved in Tentative Map No. 35181, as shown on Exhibit M, provided that the development of Parcel 2 does not inhibit construction or potentially place additional costs upon the CITY or other governmental entity for the future development of the Western Bypass. 946783.6 Final 9/18/07 16 4.1.5. Western Bv-Pass Connector Roads: On and Off Ramps. Provided the Western By-Pass is actually constructed, OWNER shall, at its own expense, design, secure rights of way, obtain all applicable governmental approvals and construct any approved connector roads or on or off ramps and related improvements from the Property to the Western By-Pass. CITY will use its good faith in evaluating and considering approval of a reasonable request by OWNER of any connector roads or on or off ramps from the Property to the Western By-Pass. Connector road construction costs shall include, without limitation, rights-of-way, roads, utilities, slopes, grading, and retaining walls associated with such connector roads or on or off ramps. 4.1.6. TUMF Credits and Reimbursements. In the event that OWNER desires to construct a portion of the Western By-Pass for access to the Property, any connector roads or on or off ramps, OWNER may apply for TUMF reimbursements or credits in accordance with the credit and reimbursement provisions of Chapter 15.08 of the Temecula Municipal Code pertaining to TUMF for any such portions ofthe Western By-Pass. In agreeing to this provision, OWNER acknowledges and agrees that CITY can provide no assurances that such constructs are now or will be in the future eligible for TUMF credits or reimbursements. 4.1.7. Remimrton Road Extension. OWNER shall be responsible for all costs associated with the construction of the Remington Road extension, the connection to the Western By-Pass and the installation of access points from the Property to Remington Road; in substantial conformity with the plans depicted in Exhibit I (Phase II Streets). 4.1.8. Access Points/Commercial Deliveries. For clarity of understanding, the parties acknowledges that access points i) along Remington Road; ii) pertaining to the future access ofthe extension of Remington Road to the Western By-Pass; iii) pertaining to Dendy Drive as it adjoins the Property; iv) and along the Western-By-Pass are as set forth on Tentative Map No. 35181 (the "Map"). The foregoing notwithstanding, potential additional access points are shown on Exhibit J. The number and precise locations of such potentially additional access points are to be analyzed and agreed upon in good faith by the CITY and OWNER in conjunction with the processing of applicable development plans in the future bearing in mind the reasonable commercial considerations of OWNER and the reasonable safety and design considerations of CITY. CITY and OWNER may reasonably modify the location of the access points through an Operating Memorandum pursuant to Section 2.6.4 approved by the OWNER and the City Manager of CITY. 4.1.10. Offer of Dedication ofCherrv Street. OWNER shall, in consideration of all benefits received under this Agreement, grant or dedicate to the CITY or other such governmental agency as may construct Cherry Street, such right of way, roadway, utilities, slopes, walls, piers, or other construction that would facilitate construction of Cherry Street ("Cherry Street ROW"). The foregoing notwithstanding, the area where such easements or other authorizations as may be required is limited to that area within the Right-of-Way as approved on Tentative Map 35181. The City, or any other governmental agency, as the case may be, shall be responsible for any and all retaining walls and slopes required to keep the impacts of Cherry Street within the Right-of-Way and shall not impede the development of the any parcel within Tentative Map No. 35181. If the CITY is able to obtain approval from all applicable governmental agencies associated with the construction of portions of the Western 946783.6 Final 9/18/07 17 By-Pass northerly of the City's boundary and accepts the alignment of the Western By-Pass as depicted on Exhibit N or ever abandons its intention to design and construct part or all of Cherry Street such that part or all of the Cherry Street ROW is no longer reasonably needed by the CITY for the construction of Cherry Street, CITY agrees to execute and forthwith record such documents as are reasonably needed to release that portion of the Cherry Street ROW that is no longer needed from any lien, easement, or obligation created by this Section 4.1.10. In addition, OWNER shall have the option to relocate the detention basin, in accordance appropriate CITY permit processes and extend improvements within the previously dedicated area in a manner which the parties shall negotiate in good faith. Furthermore, in such event, CITY shall use good faith efforts to secure access points to the Western By-Pass in the same approximate latitudinal position to the access points to the Western By-Pass for Cherry Street approved on Tentative Map 35181. The requirements of the last sentence are demonstrated on Exhibit N. Ifthe CITY or other governmental agency designs and constructs Cherry Street, the CITY or such other agency shall be responsible for all costs associated with Cherry Street, including without limitation roads, utilities, slopes, grading, retaining walls, and landscaping with the exception that the OWNER bears all associated costs related to connection with Cherry Street. 4.1.11. Water Oualitv Plan. CITY agrees that a Water Quality Plan for the development ofthe PHS Property will satisfy the current water quality requirements of CITY for the Project as presently designed ifit is in substantial conformity as that depicted in the Project Specific Water Quality Management Plan prepared by SB&O dated June 10, 2007 for the PHS Property on file in the Office of the City Clerk. 4.1.12 Offer of Dedication of Western Bv-Pass Easements. OWNER shall, in consideration of all benefits received under this Agreement, grant or dedicate to the CITY, or such other governmental agency as may construct the Western By-Pass, such easements or other authorizations as may be necessary for the Western Bypass to utilize a portion ofthe Property for right of way, roadway, utilities, slopes, walls, piers, or other construction that would facilitate construction of the Western By-Pass ("Western By-Pass ROW") Within the Right-of-Way and easements as approved on Tentative Map No. 35181. If the City ever abandons its intention to design and construct part of all of the Western By-Pass such that part or all of the Western By-Pass ROW is no longer reasonably needed for the construction ofthe Western By-Pass, CITY agrees to execute and record such documents as are reasonably needed to release that portion of the Western By-Pass ROW no longer needed from any lien, easement, or obligation created by this Section 4.1.13. Furthermore, in the event of such partial or full abandonment or in the event that the final alignment of the Western By-Pass is such that part or all of the Eastern most toe of the Western By-Pass is West ofthe alignment approved in Tentative Map No. 35181 , then the CITY shall cooperate in good faith in processing the OWNERS application for a lot line adjustment such that the Western Parcel Line shall extend to the toe of the slope of the Eastern most edge of the Western By-Pass. As stated in Section 4.1.1, the Western By-Pass alignment is in the design planning phase. Both parties have in good faith developed an alignment to accommodate the development of the PHS Property to the best oftheir respective abilities with the information available to at the time of approval of this Agreement. In the event that circumstances arise that cause an alteration in the assumed horizontal and vertical alignment and associated appurtenances for the Western By-Pass, the OWNER and the CITY shall cooperate in good faith with the each other in processing adjustment(s) of the lot lines, easements and access points described in this Agreement or the 946783.6 Final 9/18/07 18 Project Approvals, except to the extent that said adjustments would have a material adverse economic impact on the Project. That certain document entitled "Western Bypass Alignment- North Segment-55 mph Design Speed" dated April 24, 2007, prepared by URS for the City of Temecula shall be the reference point for determining the extent of any such change of alignment and economic impact. 4.1.13. Western Bv-PassIProiect Aooroval Conditions. Subject to the provisions of Section 4.1.5 above, none of OWNER's or PHS's Project Approvals or permits shall contain conditions requiring the construction or completion of any portion of the Western By-Pass, except those improvements associated with connection of the extension of Remington Road as described in Section 4.1.7 above. 4.2. OWNER's Oblie:ations to Construct Public Imorovements. OWNER shall, at its sole cost and expense, design, construct, install, and finally complete Off-Site Improvements. The design, construction, installation, and final completion of the Off-Site Improvements shall be in conformance with the CITY standards in effect as of the date of this Agreement and Improvement Plans approved by the CITY Engineer. Except as otherwise provided in this Agreement, the Off-Site Improvements shall be completed at such time as set forth in the conditions of approval for Development on the Property. CITY and OWNER shall enter into the CITY's standard subdivision improvement agreement, or an applicable modification thereof, for the completion of the Public Improvements. 4.3. Maintenance of Imorovements. Responsibility for the ongoing maintenance of improvements provided by OWNER pursuant to this Agreement shall be apportioned between the parties in accordance with the terms of this Section. 4.3.1. CITY Maintenance of Dedicated Public Imorovements. CITY shall maintain all dedicated and accepted Public Improvements, including but not limited to, public streets and related walls, streetlights, and public storm drainage facilities. 4.3.2. OWNER Maintenance of Landscaoine: and Storm Drain Facilities. OWNER shall maintain all landscaping on the Property and on adjacent City rights-of-way and all storm drainage facilities on the Property. 4.4. Easements. CITY shall grant such easements over CITY property as are reasonably needed for the Development of the Property provided such easements do not impede or interfere with public services provided on such properties. OWNER agrees to grant to the CITY such easements over its property as are reasonably needed for the construction and maintenance of public improvements, except to the extent such easements would have a material adverse economic effect on the Project. Such grants shall be at no additional cost to the OWNER or CITY. 4.5. Financine: Mechanisms. 4.5.1. Industrial Develooment Bonds. If requested by OWNER, CITY shall cooperate in the issuance of Industrial Development Bonds, as allowed by State or Federal law. 946783.6 Final 9/18/07 19 4.5.2. Cost of Creatine: Financine: Mechanism. If the formation or establishment of any public financing mechanism is requested by OWNER, OWNER shall bear the full cost of creating any and all such financing mechanisms. 4.6. Public Financine: of Imorovements. OWNER may, from time to time, request CITY to establish one or more assessment and/or community facilities districts to finance infrastructure, public facilities and/or fees that may be required in connection with the Development of the Project and CITY agrees to use its best efforts to implement such requests subject to applicable State and Federal law and to the Applicable Regulations. 5. Further Assurances to OWNER Ree:ardine: Exercise of Reserved Authoritv. 5.1. Assurances to OWNER. The parties further acknowledge that the public benefits to be provided by OWNER to the CITY pursuant to this Agreement are in consideration for and reliance upon assurances that the Property can be developed in accordance with the Project Approvals and this Agreement. Accordingly, while recognizing that the Development of the Property may be affected by exercise of the authority and rights reserved and excepted as provided in Section 3.2 ("Reserved Authority") of this Agreement, OWNER is concerned that normally the judiciary extends to local agencies significant deference in the adoption of land use regulations which might permit the CITY in violation of the Reserved Authority, to attempt to apply regulations which are inconsistent with the Project Approvals pursuant to the exercise of the Reserved Authority. Accordingly, OWNER desires assurances that the CITY shall not and the CITY agrees that it shall not further restrict or limit the Development of the Property in violation of this Agreement except in strict accordance with the Reserved Authority. 5.2. Judicial Review. Based on the foregoing, in the event OWNER judicially (including by way of a reference proceeding) challenges the application of a future land use regulation as being in violation ofthis Agreement and as not being a land use regulation adopted pursuant to the Reserved Authority, OWNER shall bear the burden of proof in establishing that such rule, regulation, or policy is inconsistent with the Applicable Regulations, the Project Approvals, or both and the CITY shall thereafter bear the burden of proof in establishing that such regulation was adopted pursuant to and in accordance with the Reserved Authority and was not applied by the CITY in violation of this Agreement. 6. Indemnification. 6.1. OWNER agrees to indemnify and hold harmless the CITY, its agents, officers, contractors, attorneys, and employees ("Indemnified Parties") from and against any claims or proceeding against the Indemnified Parties to set aside, void or annul the approval of this Agreement. Notwithstanding the provisions of Section 2.5.1 of this Agreement, OWNER's obligation pursuant to this Section is not a benefit or burden running with the land and shall not be assigned to any person without the express written consent of the CITY. OWNER's duties under this Section are solely subject to and conditioned upon the Indemnified Parties written request to OWNER to indemnify the Indemnified Parties. OWNER shall deposit the expected costs of defense with the CITY within five (5) business days of notice from the CITY of the claim and shall add to the deposit within five (5) business days from the request of CITY. Without in any way limiting the provisions of this Section, the parties hereto agree that this 946783.6 Final 9/18/07 20 Section shall be interpreted in accordance with the provisions of California Civil Code Section 2778 in effect as of the Effective Date. 6.2. Notwithstanding Section 6.1, and as a separate and distinct obligation of OWNER, OWNER agrees to indemnify and hold harmless the Indemnified Parties from and against each and every claim, action, proceeding, cost, fee, legal cost, damage, award or liability of any nature arising from alleged damages caused to third parties and alleging that the Indemnified Parties is or are liable therefor as a direct or indirect result of the CITY's approval of this Agreement. OWNER's duties under this Section are solely subject to and conditioned upon the Indemnified Parties written request to OWNER to indemnify the Indemnified Parties. OWNER shall deposit the expected costs of defense with the CITY within five (5) business days of notice from the CITY of the claim and shall add to the deposit within five (5) business days from the request of CITY. Without in any way limiting the provisions of this Section, the parties hereto agree that this Section shall be interpreted in accordance with the provisions of California Civil Code Section 2778 in effect as of the Effective Date. 7. Relationship of Parties. The contractual relationship between the CITY and OWNER is such that OWNER is an independent contractor and not the agent or employee ofthe CITY. The CITY and OWNER hereby renounce the existence of any form of joint venture or partnership between them, and agree that nothing contained in this Agreement or in any document executed in connection with the Development of the Property shall be construed as making the CITY and OWNER joint ventures or partners. 8. Amendment or Cancellation of Agreement. This Agreement may be amended or canceled in whole or in part only by mutual consent of the parties in the manner provided for in Government Code Section 65868. No amendment or modification of this Agreement or any provision hereof shall be effective unless set forth in writing and signed by duly authorized representatives of each party hereto. This provision shall not limit the CITY's or OWNER's remedies as provided by Section 10.3. 9. Periodic Review of Comoliance with Agreement. 9.1. Periodic Review. The CITY and OWNER shall review this Agreement at least once every 12-month period from the date this Agreement is executed. The CITY shall notify OWNER in writing of the date for review at least thirty (30) days prior thereto. Such periodic review shall be conducted in accordance with Government Code Section 65865.1. 9.2. Good Faith Comoliance. During each periodic review, OWNER shall be required to demonstrate good faith compliance with the terms of this Agreement. OWNER agrees to furnish such reasonable evidence of good faith compliance as the CITY, in the exercise of its reasonable discretion, may require. If requested by OWNER, the CITY agrees to provide to OWNER, a certificate that OWNER or a duly authorized Transferee is in compliance with the terms of this Agreement, provided OWNER reimburses the CITY for all reasonable and direct costs and fees incurred by the CITY with respect thereto. 946783.6 Final 9/18/07 21 9.3. Failure to Conduct Annual Review. The failure of the CITY to conduct the annual review shall not be an OWNER default. Further, OWNER shall not be entitled to any remedy for the CITY's failure to conduct this annual review. 9.4. Initiation of Review bv CITY Council. In addition to the annual review, the CITY Council may at any time initiate a review of this Agreement by giving written notice to OWNER. Within thirty (30) days following receipt of such notice, OWNER shall submit evidence to the CITY Council of OWNER's good faith compliance with this Agreement and such review and determination shall proceed in the same manner as provided for the annual review. The CITY Council shall initiate its review pursuant to this Section only if it has probable cause to believe the CITY's general health, safety, or welfare is at risk as a result of specific acts or failures to act by OWNER. 9.5. Administration of Agreement. Any final decision by the CITY staff concerning the interpretation and administration of this Agreement and Development of the Property in accordance herewith may be appealed by OWNER to the CITY Council, provided that any such appeal shall be filed with the CITY Clerk within ten (10) business days after OWNER receives written notice that the staff decision is final. The CITY Council shall render its decision to affirm, reverse, or modify the staff decision within thirty (30) days after the appeal was filed. The decision of the City Council as to the administration of this Agreement shall be final and is not appealable. The foregoing notwithstanding, breaches of this Agreement are subject to judicial relief as provided in this Agreement. 9.6. Availabilitv of Documents. If requested by OWNER, the CITY agrees to provide to OWNER copies of any documents, reports or other items reviewed, accumulated or prepared by or for the CITY in connection with any periodic compliance review by the CITY, provided OWNER reimburses the CITY for all reasonable and direct costs and fees incurred by the CITY with respect thereto. The CITY shall respond to OWNER's request on or before ten (10) business days have elapsed from the CITY's receipt of such request. 10. Events of Default: Remedies and Termination. Unless amended, modified, or suspended pursuant to Government Code Section 65869.5, this Agreement is enforceable by either party hereto. 10.1. Defaults bv OWNER. If the CITY determines that OWNER has not complied in good faith with the terms and conditions of this Agreement, the CITY shall, by written notice to OWNER, specify the manner in which OWNER has failed to so comply and state the steps OWNER must take to bring itself into compliance. If, within thirty (30) days after the effective date of notice from the CITY specifying the manner in which OWNER has failed to so comply, OWNER does not commence all steps reasonably necessary to bring itself into compliance as required and thereafter diligently pursue such steps to completion, then OWNER shall be deemed to be in default under the terms of this Agreement. The foregoing 30-day period shall be tolled during the pendency of any appeal undertaken pursuant to Section 9.5, if applicable. Default of OWNER shall also include, but not limited to, OWNER's failure to timely commence construction of the Public Improvements pursuant to this Agreement; OWNER's failure to timely complete construction of the Public Improvements; OWNER's failure to timely cure any defect in the Public Improvements; OWNER's failure to perform 946783.6 Final 9/18/07 22 substantial construction work on the Public Improvements for a period of 20 calendar days after commencement of the work; or OWNER's failure to perform any other obligation concerning the Public Improvements under this Agreement. Except as provided in Section 13 ("Attorneys Fees") CITY's remedies for OWNER's breach shall be limited to those specified in Section 10.3. 10.2. Defaults by CITY. If OWNER determines that the CITY has not complied in good faith with the terms and conditions of this Agreement, OWNER shall, by written notice to the CITY, specify the manner in which the CITY has failed to so comply and state the steps the CITY must take to bring itself into compliance. If, within thirty (30) days after the effective date of notice from OWNER specifying the manner in which the CITY has failed to so comply, the CITY does not commence all steps reasonably necessary to bring itself into compliance as required and thereafter diligently pursue such steps to completion, then the CITY shall be deemed to be in default under the terms of this Agreement. OWNER's remedies for CITY'S breach shall be limited to those specified in Section 10.3. 10.3. Lee:al Remedies. 10.3.1. No Monetarv Damages. Due to the size, nature, and scope of the Project, it will not be practical or possible to restore the Property to its natural condition once implementation of this Agreement has begun. After such implementation, OWNER may be foreclosed from other choices it may have had to utilize the Property and provide for other benefits. OWNER has invested significant time and resources and performed extensive planning and processing of the Development of the Property in agreeing to the terms of this Agreement and will be investing even more significant time and resources in implementing the Project in reliance upon the terms ofthis Agreement, and it is not possible to determine the sum of money which would adequately compensate OWNER for such efforts. For the above reasons, the CITY and OWNER agree that damages would not be an adequate remedy if the CITY fails to carry out its obligations under this Agreement and that OWNER shall have the right to seek and obtain specific performance as a remedy for any breach of this Agreement. Moreover, the CITY would not have consented to this Agreement ifit were to be subject to damages for breach of this Agreement. Therefore, OWNER specifically agrees that it has no authority under this Agreement to seek monetary damages against the CITY for any breach of this Agreement by the CITY, and agrees not to seek monetary damages against the CITY for breach of this Agreement. 10.3.2. Soecific Performance Remedy. The CITY and OWNER further acknowledge that, if OWNER fails to carry out its obligations under this Agreement, the CITY shall have the right to refuse to issue any permits or other approvals that OWNER would otherwise have been entitled to pursuant to this Agreement. Therefore, the CITY's remedy of denying issuance of permits or terminating this Agreement shall be sufficient in most circumstances if OWNER fails to carry out its obligations hereunder. Notwithstanding the foregoing, if the CITY issues a permit or other approval pursuant to this Agreement in reliance (explicitly stated in writing) upon a specified condition being satisfied by OWNER in the future, and if OWNER then fails to satisfy such condition, the CITY shall be entitled to specific performance for the sole purpose of causing OWNER to satisfy such condition. The CITY's right to specific performance shall be limited to those circumstances set forth above, and the CITY shall have no right to seek specific performance to cause OWNER to otherwise proceed with the Development of the Project in any manner. 946783.6 Final 9/18/07 23 10.4. Institution of Lee:al Action. In addition to any other rights or remedies, and except as provided in Section 11.3, OWNER or the CITY may institute legal action to cure, correct or remedy any default, to enforce any covenants or agreements herein, to enjoin any threatened or attempted violation hereof to recover damages for any default, or to obtain any other remedies consistent with the purpose of this Agreement. Such legal action shall be heard by a referee from the Riverside County Superior Court pursuant to the reference procedures of the California Code of Civil Procedure Sections 638, et seq., OWNER and the CITY shall agree upon a single referee who shall then try all issues, whether of fact or law, and report a finding and judgment thereon and issue all legal and equitable relief appropriate under the circumstances of the controversy before him/her. If OWNER and the CITY are unable to agree on a referee within ten (10) days of a written request to do so by either party hereto, either party may seek to have one appointed pursuant to the California Code of Civil Procedure Section 640. The cost of such proceeding shall initially be borne equally by the parties. Any referee selected pursuant to this Section shall be considered a temporary judge appointed pursuant to Article 6, Section 21 of the California Constitution. 10.5. Estoooel Certificates. 10.5.1. Written Reauest. Either party may at any time deliver written notice to the other party requesting an estoppel certificate (the "Estoppel Certificate") stating: (1) this Agreement is in full force and effect and is a binding obligation of the parties; (2) this Agreement has not been amended or modified either orally or in writing or, if so amended, identifying the amendments; and (3) no default in the performance of the requesting party's obligations under this Agreement exists or, if a default does exist, the nature and amount of any default. 10.5.2. Thirty (30) Days to Resoond. A party receiving a request for an Estoppel Certificate shall provide a signed certificate to the requesting party within thirty (30) days after receipt of the request. 10.5.3. Authorized Sie:natories. The CITY Manager or any person designated by the CITY Manager may sign the Estoppel Certificates on behalf of the CITY. Any officer of OWNER may sign on behalf of OWNER. 10.5.4. Reliance. An Estoppel Certificate may be relied on by assignees and mortgagees. 10.5.5. Reimbursement. In the event that one party requests an Estoppel Certificate from the other, the requesting party shall reimburse the other party for all reasonable and direct costs and fees incurred by such party with respect thereto. 10.5.6. Failure to Provide Estopoel Certificate. Failure by a party to provide an Estoppel Certificate within thirty (30) days after receipt of the request therefor shall be deemed confirmation that this Agreement is in full force and effect, has not been amended or modified either orally or in writing and that no defaults in the performance of the requesting party's obligations under this Agreement exist. 946783.6 Final 9/18/07 24 11. Waivers and Delavs. 11.1. No Waiver. Failure by a party to insist upon the strict performance of any of the provisions of this Agreement by the other party, and failure by a party to exercise its rights upon a default by the other party hereto, shall not constitute a waiver of such party's right to demand strict compliance by such other party in the future. 11.2. Third Parties. Non-performance shall not be excused because of a failure of a third person, except as provided in Section 11.3 11.3. Force Maieure. OWNER shall not be deemed to be in default where failure or delay in performance of any of its obligations under this Agreement is caused by floods, earthquakes, other Acts of God, fires, wars, riots, terrorism, or similar hostilities, strikes and other labor difficulties beyond OWNER's control, government regulations (including, without limitation, state and federal environmental and natural resource regulations applied to the Property), or judicial decisions directly applicable to the Property. 11.4. Extensions. The Term of this Agreement and the time for performance by OWNER or the CITY of any of its obligations hereunder shall be extended by the period of time that any of the events described in Section 11.3 and this Section 11.4 exists and/or prevents performance of such obligations. In addition, the Term shall be extended for delays arising from the following events for a time equal to the duration of each delay occurring during the Term. 11.4.1. Litie:ation. The period of time after the Effective Date during which litigation related to this Agreement or having the actual effect of delaying implementation of the Development of the Property is pending, including litigation pending on the Effective Date. This period shall include any time during which appeals may be filed or are pending. 11.4.2. Government Ae:encies. Any delay resulting from the acts or omissions of the CITY or any other governmental agency or public utility and beyond the reasonable control of OWNER except those related to the normal and customary processing of Future Development Approvals. 12. Notices. All notices required or provided for under this Agreement shall be in writing and delivered in person or sent by certified mail, postage prepaid, return receipt requested, or by overnight delivery. Notices required to be given to the CITY shall be addressed as follows: City of Temecula 43200 Business Park Drive Post Office Box 9033 Temecula, CA 92589-9033 Attention: CITY MANAGER With a copy to: Richards, Watson & Gershon 355 South Grand Avenue, 40th Floor 946783.6 Final 9/18/07 25 Los Angeles, CA 90071-1469 Attention: Peter M. Thorson, City Attorney Notices required to be given to OWNER shall be addressed as follows: The Garrett Group, LLC One BetterWorld Circle, Suite 300 Temecula, CA 92590 Attention: John Potts, Vice President Real Estate With a copy to: Martin A. Weiss, J.D., LLM, General Counsel One BetterWorld Circle, Suite 300 Temecula, CA 92590 A party may change its address for notices by giving notice in writing to the other party as required herein and thereafter notices shall be addressed and transmitted to the new address. All notices under this Agreement shall be deemed given, received, made or communicated on the earlier of the date personal delivery is effected or on the delivery date or attempted delivery date shown on the return receipt, or air bill. 13. Attornevs' Fees. Iflegal action is brought by either party against the other for breach of this Agreement, including actions derivative from the performance of this Agreement, or to compel performance under this Agreement, the prevailing party shall be entitled to an award of its costs, including reasonable attorneys' fees, and shall also be entitled to recover its contribution for the costs of the referee referred to in Section 10.4 above as an item of damage and/or recoverable costs. Attorneys' fees under this Section shall include attorneys' fees on any appeal and, in addition, a party entitled to attorneys' fees shall be entitled to all other reasonable costs and expenses, including, without limitation, expert witness fees, incurred in connection with such action. In addition to the foregoing award of attorneys' fees to the prevailing party, the prevailing party in any lawsuit shall be entitled to its attorneys' fees incurred in any post- judgment proceedings to collect or enforce the judgment. This provision is separate and several and shall survive the merger of this Agreement into any judgment on this Agreement. 14. Recordine:. This Agreement and any amendment or cancellation hereof shall be recorded, at no cost to the CITY, in the Official Records of Riverside County by the CITY Clerk within the period required by Section 65868.5 of the Government Code. 15. Effect of Agreement on Title. 15.1. Effect on Title. OWNER and the CITY agree that this Agreement shall not continue as an encumbrance against any portion of the Property as to which this Agreement has terminated. 15.2. Encumbrances and Lenders' Rie:hts. OWNER and the CITY hereby agree that this Agreement shall not prevent or limit any OWNER of any interest in the Property, or any 946783.6 Final 9/18/07 26 portion thereof, at any time or from time to time in any manner, at its or their sole discretion, from encumbering the Property, the improvements thereon, or any portion thereof with any mortgage, deed of trust sale and leaseback arrangement or other security device. The CITY acknowledges that any Lender (as hereinafter defined) may require certain interpretations of or modifications to this Agreement or the Project and the CITY agrees, upon request, from time to time, to meet with the OWNER(s) and/or representatives of such Lenders to negotiate in good faith any such request for interpretation or modification. The CITY further agrees that it will not unreasonably withhold its consent to any such requested interpretation or modification to the extent such interpretation or modification is consistent with the intent and purpose of this Agreement. A default under this Agreement shall not defeat, invalidate, diminish, or impair the lien of any Lender. 15.3. Notice of Defaults. The mortgagee of a mortgage or beneficiary of a deed of trust or holder of any other security interest in the Property or any portion thereof and their successors and assigns, including without limitation the purchaser at a judicial or non-judicial foreclosure sale or a person or entity which obtains title by deed-in-lieu of foreclosure ("Lender") shall be entitled to receive a copy of any notice of default (as defined in Section 10.1 hereof) delivered to OWNER and, as a pre-condition to the institution of legal proceedings or termination proceedings, the CITY shall deliver to all such Lenders written notification of any default by OWNER in the performance of its obligations under this Agreement which is not cured within sixty (60) days (the "Second Default Notice") and shall allow the Lender(s) an opportunity to cure such defaults as set forth herein. The Second Notice of Default shall specify in detail the alleged default and the suggested means to cure it. After receipt of the Second Default Notice, each such Lender shall have the right, at its sole option, within ninety (90) days to cure such default or, if such default cannot reasonably be cured within that ninety (90) day period, to commence to cure such default, in which case no default shall exist and the CITY shall take no further action. Notwithstanding the foregoing, if such default shall be a default which can only be remedied by such Lender obtaining possession of the Property, or any portion thereof, and such Lender seeks to obtain possession, such Lender shall have until ninety (90) days after the date of obtaining such possession to cure or, if such default cannot reasonably be cured within such period, then to commence to cure such default. Further, a Lender shall not be required to cure any non-curable default of OWNER, and any such default shall be deemed cured if any Lender obtains possession. 16. Severabilitv of Terms. If any term, provision, covenant, or condition of this Agreement shall be determined invalid, void, or unenforceable, the remainder of this Agreement shall not be affected thereby if the tribunal finds that the invalidity was not a material part of consideration for either party. The covenants contained herein are mutual covenants. The covenants contained herein constitute conditions to the concurrent or subsequent performance by the party benefited thereby of the covenants to be performed hereunder by such benefited party. 17. Subseauent Amendment to Authorizine: Statute. This Agreement has been entered into in reliance upon the provisions of the Development Agreement Legislation in effect as of the Effective Date. Accordingly, subject to Section 3.2.2 above, to the extent that subsequent amendments to the Government Code would affect the provisions of this Agreement, such amendments shall not be applicable to this Agreement unless necessary for this Agreement to be enforceable or required by law or unless this Agreement is modified pursuant to the 946783.6 Final 9/18/07 27 provisions set forth in this Agreement and Government Code Section 65868 as in effect on the Effective Date. 18. LocaL State and Federal Laws. OWNER and its contractors shall carry out the design and construction of all private improvements on the Property and all Public Improvements in conformity with all applicable laws, including, without limitation, all applicable federal, state and local occupation, employment, prevailing wage, safety and health laws, rules, regulations and standards. OWNER agrees to indemnify, defend and hold the Indemnified Parties (as defined in Section 6.1) harmless from and against any cost, expense, claim, charge or liability relating to or arising directly or indirectly from any breach by or failure of OWNER or its contractor(s) or agents to comply with such laws, rules or regulations. OWNER's indemnity obligations set forth in this Section shall survive the termination or expiration of this Agreement.. 19. Rules of Construction and Miscellaneous Terms. 19.1. Intemretation and Governine: Law. The language in all parts of this Agreement shall, in all cases, be construed as a whole and in accordance with its fair meaning. This Agreement and any dispute arising hereunder shall be governed and interpreted in accordance with the laws of the State of California. The parties understand and agree that this Agreement is not intended to constitute, nor shall be construed to constitute, an impermissible attempt to contract away the legislative and governmental functions of the CITY, and in particular, the CITY's police powers. In this regard, the parties understand and agree that this Agreement shall not be deemed to constitute the surrender or abnegation of the CITY's governmental powers over the Property. 19.2. Section Headine:s. All section headings and subheadings are inserted for convenience only and shall not affect any construction or intclpletation of this Agreement. 19.3. Gender. The singular includes the plural; the masculine gender includes the feminine; "shall" is mandatory, "may" is permissive. 19.4. No Joint and Several Liability. At any time that there is more than one OWNER, no breach hereof by an OWNER shall constitute a breach by any other OWNER. Any remedy, obligation, or liability, including but not limited to the obligations to defend and indemnify the CITY, arising by reason of such breach shall be applicable solely to the OWNER that committed the breach. However, the CITY shall send a copy of any notice of violation to all OWNERS, including those not in breach. In addition, a default by any Transferee shall only affect that portion of the Property owned by such Transferee and shall not cancel or diminish in any way OWNER's rights hereunder with respect to any portion of the Property not owned by such Transferee. The Transferee shall be responsible for the reporting and annual review requirements relating to the portion of the Property owned by such Transferee, and any amendment to this Agreement between CITY and a Transferee shall only affect the portion of the Property owned by such Transferee. Any amendments to this Agreement between CITY and OWNER shall not affect any portion of the PHS Property unless agreed to in writing by the Transferee of the PHS Property. 946783.6 Final 9/18/07 28 19.5. Time of Essence. Time is of the essence regarding each provision of this Agreement of which time is an element. 19.6. Recitals. All Recitals set forth herein are incorporated in this Agreement as though fully set forth herein. 19.7. Entire Agreement. This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof, and this Agreement supersedes all previous negotiations, discussion and agreements between the parties, and no parol evidence of any prior or other agreement shall be permitted to contradict or vary the terms hereof. 19.8. Authority to Execute Agreement. The person executing this Agreement on behalf of the OWNER warrants and represents to the CITY that this Agreement has been duly approved by the OWNER and that all applicable notices and procedures were complied with and that he/she is duly authorized by the OWNER to execute this Agreement on behalf of the OWNER and has been duly authorized to do so. 19.9. Not for Benefit of Third Parties. This Agreement and all provisions hereof are for the exclusive benefit of the CITY and OWNER and its Transferees and shall not be construed to benefit or be enforceable by any third party. 19.10. Countemarts. This Agreement maybe executed in any number of counterparts, and each of such counterparts for all purposes shall be deemed to be an original, and all of such counterparts shall constitute one and the same agreement. 19.11. Exhibits. The following Exhibits are attached to this Agreement and incorporated herein as though set forth in full: . Exhibit A: Description of Property; . Exhibit B: Off-Site Improvements; . Exhibit C: PHS Property; . Exhibit D: [Intentionally Deleted]; . Exhibit E: Western By-Pass; . Exhibit F: Authorized Land Uses; . Exhibit G: Resolution setting forth applicable Development impact Fee rates; . Exhibit H: Projected Processing Schedule; . Exhibit I: Plan for the Remington Road Extension, Including Future Access Points; . Exhibit J: Curb Cuts; 946783.6 Final 9/18/07 29 . Exhibit K: MSHCP; and . Exhibit L: [Intentionally Deleted] . Exhibit M Depiction of Parcel 2 Grading . Exhibit N Depiction of Alternative Access Points and Alignments Cherry Street Right-of Way (Section 4.1.10) 946783.6 Final 9/18/07 30 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above.. CITY OF TEMECULA, a municipal corporation By: Chuck Washington Mayor ATTEST: Susan Jones, MMC City Clerk APPROVED AS TO FORM: Peter M. Thorson City Attorney 31 TEMECULA PROPERTIES, LLC A California limited liability company By: Redhawk Communities, Inc. A California corporation Its: Managing Member By: Paul Garrett, President 32 PROFESSIONAL HOSPITAL SUPPLY, INC, a California corporation. By: John Augustine Chief Financial Officer 33 State of California ) ) ) ss County of Riverside On before me, , (here insert name of the officer), Notary Public, personally appeared personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and 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. Witness my hand and official seal. Signature of Notary State of California ) ) ) ss County of Riverside On before me, , (here insert name of the officer), Notary Public, personally appeared personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in hislherltheir 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. Signature of Notary 34 EXHIBIT A (Description of Property) EXHIBIT A LEGAL DESCRIPTION PARCEL A, LOT LINE ADJUSTMENT NO. P A-06--0179 PAR\,;~ A. Lot Line Adiustment No. PA 06- 0279 Parcel A of City of Temecula Lot Line Adjustment No. PA~06-0279J approved by the City of TemecuJa on November 16J 2006 and recorded December 7~ 2006 as Instrument No. 2006--0898508~ Official Records of Riverside, County, State of CaIiforni~ being more particularly described as follows: Being a pordon of Parcel "A" of Lot Line Adjustment No. J 1, In the City of Temecula. County of Riverside, State of California, recorded January 13, 1993, as Instrument no. 13666 o/Official Records of said CounJy, al~o a portion of Parcel liB" of Lot Line Adjustment No. PAOO-0051, in the City ofTemecula, County of Riverside, State of California, recorded May 19,2000, as Instrument No. 2000-190898, of Official Records of said County, more particularly described as follows: COMMENCING at the westerly corner of said Parcel "A"; Thence North 48009'38"East along the northwesterly line of said Parcel "A", a distance of688.10feet, being the TRUE POINT OF BEGINNING; Thence leaving said northwesterly line, South 29008 '20" East, a distance of 641.21 feet, to the beginning of a tangent curve concave southwesterly, having a radius of 1050.00 feet, a radial line bears North 60CSJ '40"East; Thence southeasterly along said curve through a central angle of J 1049 '37", an arc distance of 216.74 feet; Thence South 17018'43" East, aelistance of 109. 23feet, to the beginning 010 tangent curve concave northeasterly, having a radius of 1450.00 feet, a radial line bears South 72041'J7"Wesf; Thence southeasterly along said curve through a central angle 34002 '06, an arc distance of861.33 feet; Thence South 51 0]0'49" East, a distance of88.82feet, to the southeasterly line of said Parcel "B"; Thence along said southeasterly line North 38049'43" East, a distance of 1156.40 feet, to the centerline of Winchester Road (100.00 feet wide); Thence along said centerline North /90.53 '29"West, a distance of232.02feet; Thence leaving said centerline South 70006 '31" West, a distance of 50.00 feet, to the beginning of a non-tangent curve concave southwesterly, having a radius of 800.00 fiet, a radial line bears North 70006'31 "East, also being a point in the southwesterly right-ol-way line of said Winchester Road D:\6S472\sulVcy\LLA\Pan:e1 A LLA PA06-0279.doc Legal Description Parcel A, Lot Line Adjustment No. P A-06~0279 Page 2of2 Thence northwesterly along said curve and said right-of-way line through a central angle of26 OJ7 '06 ", an arc distance of 369.33 feet; Thence along said right~of-way line North 460]0 '35" West, a distance of 184.96 feet, to an angle point In said rlght~of-way line; Thence along said right-of-way line South 880]9 '25" West, a distance of 32.53 feet; Thence along said right-ol-way line North 46 '10'35" West, a distance of 50.00 feet. to the souJhwesterly prolongation of the centerline of Dendy Parkway (100.00 feet wide);. Thence along said prolongation and said centerlineNorth 43 "38'42" East, a distance of 428.76 feet, to the beginning of a tangent curve concave southeasterly, having a radius of850.00feet, a radial line bears North 46021 '18" West; Thence northeasterly along said curve and said centerline through a central angle of27 042 , 40", an arc distance of 411.1 0 feet; Thence along said centerline North 71 '21 '22" East, a distance of356.61 feet, to the beginning of a tangent curve concave northwesterly, having a radius 0[850.00 feet, a ., radio/line bears South 18DJ7'55" East; Thence northeasterly along said curve, through a central angle of 02 '29'54", an arc distance of 22.23 feet, to the southerly corner of that certain parcel of land as described in Grant Deed to the City ofTemecula, recorded April 23, 1992 as Instrument No. 146241. Official Records of Riverside County; Thence along the southwesterly line of said parcel of land conveyed to the City of Temecula North 41 "50'22" West, a distance of 1001.63 feet, to the westerly corner thereof; being a point in the northwesterly line of said Parcel irA "; Thence along said northwesterly line SQuth 48 "09 '38" West, a distance of 2019.60 feet, to the TRUE POINT OF BEGINNING. The above described parcel ofland contains 66.23 acres, more or less. This was prepared by me or under my direction. S.B. & 0., Inc. ~,,- --'l?G, ~'~ ~ 7, 'ZOO? Marissa Crowther, PLS 6152 Date ~Mio~ 'f( MARISSA ~ \. ~ CROWlliER ~ 0.. Exp ~..,\..o~ :D *' * \ _n No. 615~_ \V~ ~. '~(~OFC~\..\~()~ D:\654n\survey\LLA\Parcel A LLA PA06-0279.doc EXHIBIT B (Off-Site Improvements) -.,--------, .... l:s "i lii ~ - .. ~ I I ~ !I= L ~ S.- . ~ I ~' I I I ~ 133HS 33S 3N/7 H:Jl V'W / , , / , , / , , / , , ~ ~. ~ ~ ~ ~ ~~ ;t 1~;lh I ~ m~m~~ ~ ~ ~ !!l ~~IIl~~ ~ U '1 ~'I ~~ ~ liIJ~~~~ -~ z .... ~ Ii) ~ I!! I II ~ .- I t . . I ~i I r~':~~ II II II II II II II 1/ 1/ II II " II II II II II " II " II II II II " o :: .J II " " " II " " II " II " " II II 1\ /.~ =====~" , , / I , I I I I , , I . Ii I I ~ I ii ! :J Dt . ,lui . Jlt,. ,t;!Bi ... ~ .~ J~ ~~ tl:~ ~l;:i ;;:;~ ~ ~ i~ . I k J i l......... ~,~ ~~ <::l !Ill}: it~ , ~--::...._.. ~ . ~ . ~ . - . . , " '" 11 I ~ I ~ . /I . R I i '. " /': u . H . Q . N ,. : " I: '/I '1/ '" , '11 /'!! '. '1/ '/1 ,'n , , . /, I" , 1/ , 1/ " " : ~'/: 'II 'II '" I 'H ,/: //8 /' I I . / I I ,,---------==-='4-- ~-------- - ,- I ~ I I , I , I I , I I , , , , I J I I I , I , I Ii II II II II II \I I' " " " I' " , I ... ~ "'I ~ , .. ij I I ~!It l ~~.I i ~... I ~ e If t t I I Z 133HS 33S 3N/7 H:Jl ~IY ~ I:: ~ ~~ i :::i~ ... ~~~ ~ ]~~~~). ~ ~ ~. - !i'l~~i ~ ~ S.,. I !!i ~~ ~ ~ I:-: . ~~8~ ~ ~ ~ !i! l(~Iij~ ~ ~ ~ : II ~I lJj ~~~. ~ i;f5}l:l~~ ' ~ II . . 11 '1 ~ I ~ ~ i I .1 i~ ~~ Z ! :J ,: ..: ,., ..'.'~d :IU! o . . . la . I ;1 . J "'1 l~:::::: ~ Q::: \-. ~ ~ ~ ~ ~ J-~~ ~ei "$ \-. "'C) ':::) u~ ~-q: ~ \-. ~ ~9:. ~~ ~':::) Q:.(.:) ~~ !::l-q: . I..l:i Ql ~cs ~~ %:!::l ~ ~ ~ Q ~~I~ ~\~l'\j J ~ ."06 ~ ~ ~ '\ - 4J ~ ..L-d- ~ - - ~ ofv ~ !::l --CO~ /'<< O'O-?s- ~ c,V ~ /.~ () \')\ ~ C; 'it. ~':- \. , \. ~ -.-~---- , "- -"-- '~, ~ -'_ -.;,__ J- -'- '" "-- () -,__ -~-____ ' ..J ,,- -- II) --- ~ ------ --~~- --------- 6 -~~ ------------- I --~M - -' -~ ---- ---------------------------------- .- { o ..J ~- I~ lei) ~ ~ I ~ & & ~ ~ u u . .....:aoS1:1O ..lll::> 3<3/QG!,R1 :10 ..ll.N'OO ~ '" ~~~ l(!~~ .....'~~ ;;s~~ !i:i..q:"> ~~@:s ~~C:S~ !::)lll. ~ ill~~~ ~~lJl~ ~'~~~ !;;l;13 ~ c::s~ ~ ;.r:: , ~ll: l:l !Il~ ~~lt'j!tl lll~~~ ;;:~~).. A: ~lll ~~l;j~ ~ :;;:~~ ~~~~ "::S~l( " ~. ~~ ~!~ ]~!il . ~~~~ II ~I~~ ~ ~ I : II ~I ra til\ I~ ~~II.~ I ~ ~ I ~ ~ r I I ! i: 1 '1 J . I If ~ i \t I..~....~ ~ r:::::::j' i.......- II II II II " " " II II II II II 'I II " II II II II " " II " " 'I 'I " " " " " ... II O~ " I, ..:J I: " " " 1\ " =~~--- ~ ---=~====~====~~ j l ~ ~~ ~ =:3~ ~ ~~~ ~ ]lil~~~ !::: !\:: ~!i~ U P . ~~~~ c;) ~ ~ lii ll:lI'j\ij!4: U U ~ ill I.~~~~i i ~ .~ ~i ~'S! c;) lI\~ it ~ "'~J ! z - :.:=:'~ "-. -..- . I I "- .~~..,. .-- I,: ___J ~ "4 lit i!i ... IQ M~~ ~ t .1. ~ ~ I ~ ~ J I I II Ii . I i 1 91 ; Ii Ii I I ~I ii g~ I' '-I~II , dll . . . ;1' _.. . ;lti . I - i ~~ ;1 l::~ J....- ~ ~ - . - . ~ -. "7-',"- ~~ ~'~~ - :--;;"-"-.---....-:--= ""'--~.~~.....".." - ' ---------------- --------- "';.~-""'--- _ 'lI:U~ ---'~"'~ - =:::::----- - -=--....-- . --'--~----------,-----~ ..~~~.~ ~--~ I ! \~ ~ ~ ",- ---- ~ ... ~ ~ ~ ~~ ~ , \iil~ ~ ,~~~~ ~ II: ~~I~i ~.~~, ~~~~ ~ ~ ~ ~ I II ll:liilii~ ~ ~ a Iii I · I' ~I t:ll - II ~~ ~ \Ij " iil~~~ ~ ~ I \ I ~I ,- , '~'II .'&Ii 1'1" ,~, sa ~ . . I , ~.J)I t r ~ ,I" \ III '1 I~ I' .,. ..... .-- " ~ lr) \l \ - ~ ~ 1 ~\~ .. 11\~~ \ \ \t ;.. ~ ~,,~~\ ~ ~ \~\' , - ~~II\~~ ~ ~ \\J\~~'\\ ~ I 1 i ., I ~~ tl~ ~ ... illi'6 i~~i tl~\a l~I~~ i il · Q \l 8 ~'f\\ l~l~~ " .. ~ ',,- ,,'~ " '" -~"'- ~ ~ " " '- ~ ',,-- " , ~........ ''-, - "........ '..................... ".......... "- ~ " --- ~ Q::: ~ ~ ~ > { ~ ~ !-..: ';Q X .~~~ ~~ "S ~ "<:) ":::) ~~ ~~ ~ \-. ;::: ~~ ~~ ~~ ~~ ~~ ~tXl ~cs ~(.) 'a:~ ~ ~ ~ Q. ~~'.~ ~\~ -.l .~6~ ~ ' , - (lJ \0 J--d- ~ -, ~ ~ ~ - ~O~ ~::O'o>.s- \l\ s /.? ~ -0' ~ (j 'a: ':j:' \. """' "- (;) "- \ ~ n:: ~ ~ s: It (..) "'( ~ If) ?t ~ l:l. vt - - (/v ~o C) -v~ Ci 'J'~ \. ~O'o~ /~~ EXHIBIT C (PHS Property) EXHIBIT C LEGAL DESCRIPTION LOT 4, TRACT MAP NO. 35181 Lot 4 of Tract Map No. 35181, in the City ofTemecula, reC()rded in Book of Maps, Pages through . inclusive, Records of Riverside County, State of California. ... ,,~\ ~L l.AJ~u . ~\J~ 0" ~ MARISSA \\ \. ~ CROWTHER ~ . . ,.."JJ..,. c,.~ ~ M~ 1. Zoo)O- Exp j).b,,,Dt6 :n *' * MarissaCrowther,PLS6152 Date 'cP~ No. 6152 ~I . ".f)'~OFCA\.\~~~ This was prepared by me Or under my direction. S.B. & 0., Inc. D:\6S472\survey\Parcel MlIp\Lot 4 Legal Description.doc EXHIBIT D (Intentionally Deleted) EXHIBIT E (Western By-Pass) . ---- -.......... ...,.... .. ..... ~ ~. It) l!2~~ . M~: ;:i... ~~~ ~~~ ~~@~ ~~~~ 3l~~~ !U~I ~;81~ !k'~~ ~ ~ ~ ~;~~ ~ ; I 3 ~ ~ r !l: !Il1ij~15 , ~~12l<::: ~~I!Q ~ ~::s ~~~~ ~~ .... ~~l3j{;l b ~ ~~~ ..:J ~~~.g: ....... II s . 11 . ~~ ~~ & & f ~ u i3 10 b J -----~-- - y o....:s>ol3J. ~..llt:l 301~R1 ~ ..um?:l EXHIBIT F (Authorized Land Uses) Parcel 1 Industrial Office Retail Multi-Famny Residential Eduqation EXHIBIT nF" ALLOWABLE LAND USES Parcel 2 Parcel 3 Parcel 4 Industrial Office Retail Industrial Industrial Office EXHIBIT G (Resolution regarding Development Impact Fee rates) l .J 1 t J . .O! RESOLlIrION NO. 03-63 A RESOLlInON OF THE CITY COUNCIL OF THE CITY OF TEMECULA E8TABUSHlNG AND IMPOSING NEW DEVELOP.MENT IMPACT FEES AND INCREASING CURRENT DEVELOPMENT IMPACT FEES EFFECTIVE JULY 26, 2003 PURSUANT TO CHAPTER 15.08 OF THE TEMECULA MUNICIPAL CODE AND RESOLunON NOS. 97...4 AND IAO. WHEREAS. on May 27. 1997, the City Council adopted Ordinance No. 97-09 "eStablishing Chapter 15.08 of the Ternecula MunIcIpal Code, Public FacillUes Development Impact Fee (IIDIP), which was modified by Ordinance No. 97.14 on August 16, 1997, and was 'further modified by Ordinance No. 98-05 on April 14, 1998; and WHEREAS, on May 27, 1997. the City Council adopted Resolution No. 97-45 which .establlshed the Development Impact Fees. This Resolution was restated and modified by .Resolution No. 98-30 on April 14, 1998; and WHEREAS. the City Council adopted residential OIF as recommended in a Development Impact Fee Study conducted by Oavld M. G_ and Associates (MOMG.). and adopted non-resldentfal DIF at 36% of the amount recommended by DMG; and WHEREAS. ResoluUon 98-30 provides for an automatic annual adjustment of both residential and ~resldential DIF based on the percentage Increase or decrease, If any, of the . Engineering News Record Building Cost Index ("Bel' for the Los Angeles MetropoUtan Area BCI for the twelve mOnth period prior to May 1 of the year In which the change will be effective; and WHEREAS, exhibit B to Resolution 98-30 contains projected fees for seven (7) years with no escalation appUed to residential DIF and an escalation of 10% per year appUed to non- .. residential DIF until fees reach 60% of the recommended fee; and WHEREAS. Development Impact Fees are typically analyzed every three to five years to :monetarlly quantify the Impacts of dev(:tJopment on certain capital facilities; and WHEREAs, In August 2002. the City contracted with the firm of Maximus (formerty .:.DMG) to prepare a report providing recalcutated development Impact fees based on updated . .information on existing and future development and facU!tles. NOW, THEREFORE, BE IT RESOLVED by the City Councll of the City of Temecula as follows: Section 1. The City Council of the City of Temecula does hereby flnd. determIne and declare as fonows: . . A. As detailed In Exhibits A, residential Development Impact Fees shall be adopted as re........mended In the Impact Fee Study Report completed by Maxlmusdated March 10, 2003. R:JResos 2OO3IR8I08 ()3;63 1 ,'. B.. As detailed In E>chlblt B. non-resldentlal Development Impact Fees shall be phased In over 8 th.....year period. The non-residential fees would not be Increased (except for the annual BCI adjustment) unUl July 1. 2004 and would phase In to 1000,{. of the recommended fees beginning July 1, 2008. C. According to. .Resolutlon 98-30, both resldenUaI and non-resldenUaI development Impact fees wiD be 8ubJect to an automatic annual adjustment based on the percentage Incresse or decrease. If any, of the Engineering News Record BuDding Cost Index ("Bel") for the. '-os Angeles Metropolitan kea BCI for the twelve month period prior to Miy 1 of the year. In which the change wiD be effective.. These annual Bct adjustments would contfnue during the phase-ln of non-resldentfat"fees. Section 2. These development Impact fees win be effective July 26. 2003. PASSED, APPROVED and ADO,. II:D by the City Council of the City of Temecula at a regular meeUng held on the 27" day of Mav, 2003. J . ATTEST: )-~ ~ (fray E. stone. Mayor -1 I R:JResos 2OO3IReso8 Q3.83 2 I hereby corll/y, ul'lder Ibe psnallV ai perjury Ihal lha above and tor8!joinfl Is a lru& and correct copy 0' an original on deposit within Ihe records 01 the City of Tlmeoula. In wllness wbel8ol, I haye hereuntll ,el my hand and atlxed Ibe seal ollba elly of Tamseura Iblsaday olJ1.tH.' .~o.!!:1.. Mlchaele A. Ballrelch. Depu\y City dlerll by: \. to. .~ ~~. 1\40.0.... ~ L.. STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) 88 CITY OF TEMECULA ) I, Susan W. Jones, City Clerk of the City of Temecula, CaUfomJa, do hereby certify that ResoI,UUon No. 03-83 was duly and regularly adopted by the City Council of the City of Temecula at a regular ~eUng thereof beld on the 27" day of May; 2003, by the following vote: AYES:, 4 COUNCILMEMBERS: Comerchero. Nag9ar" Roberts, Stone NOES: O. COUNCILMEMBERS: None ABSENT: 0 COUNCILMEMBERS: None ') ABSTAIN: 1 COUNCILMEMSERS: Pratt / /\~tJ ~ ( ;' s. ~tn W. jonesjes. 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Wfldd.__fD"_~. ~., I: ,\SIaII flepaIt. New DIF AIIaeIInM 8Jda t:4O PM 0&'2112003 EXHIBIT H (Project Processing Schedule) PHSlThe Garrett Group/Ci,ty of Temecula PROCESSING SCHEDULE. Task IGrading Plans Resubmitted (3rd revision) Grading Plan Comments to Applicant .!BuildinQ Plans Submitted . Building Plan Comments to Applicant IBuilding Plans Resubmitted IBuilding Plan Comments to Applicant 30-day CEQA Notice Due PC SRlConditionsof Approval Due Planning Commh~sion hearing (all applications) ICity Council hearing (DA and GPA) IPrecise Grading Permit available for PHS (Parcel 4)* City Council 2nd reading (GPA, DA) DA Validation ACtion Filing Deadline DA Validation Action Resolved Deadline /BUilding Permit available for PHS (Parcel 4)** Final Map Recordation Red = Applicant Blue = Staff Green = All * Contingent upon mitigation measures being met **Contingent upon conditions of approval being met 08/29/2007 1 Due Date # of days OS/25/2007 06/08/2007 14 days 06/14/2007 06/28/2007 14 days 07/12/2007 14 days I 07/19/200717 days I. 08/01/20071 I 08/01/20071 I 09/05/20071 1 09/25/20071 09/26/20071 10/09/20071 ,I. 10/14/200715 days I. 01/12/2008 90 days 1 01/12/2008 I 03/07/200815 months ;: EXHIBIT I (Plan for Remington Road Extension Including Future Access Points) ~ ~ !a '" ~Ig !Q~S ~'i:5~ 1il~~ ~~@~ ~~~~ ~~~ffi ~~81~ ~~~~ ~i~~w ~ ~~ u ~!l:: \Il It ~~~\Il ~~~!5 ~~~~ m~~!a . ~~i!:~ ~ w1r~tl! ~ ~:S~q: '" ~ q: ~ ?3 ~~ ~ -.._--...",--._.,~. .. ~ : I ~llk! ~~ I ~ I ~ I ~ I I!! J I II . . II I I i U ~ I I . . I I ~I i~ ~:), .jj .-.1 . j'-::::::::: ......... , . EXHIBIT J (Curb Cuts) ~ !::l ~ ~ Q':slg !Q~S .;t~ ~~t ~~~~ ~~~~ !::)lll. ~ ~~~~ ~~8\~ ~~~~ ii~~ ~ ~ ~~ ~~~~ ~~tb~ ~~~). III !,Sill ~~~~ ~ ~~~~ ~~~~ 1':::S~c( iii ij R - ~ ~ I ~il~ ~tt'l ~ I I ~ I I I I I II , I I I '. tI ! ~' ~: , '! I .1 ii ,:~' - :, j t --.Ilil. ~ 'II ,I! Ji . I i.- - EXHIBIT K (MSHCP) ~ ~~ r.::~ \u~ lll\u ~~ !:S~ ~Il: ~ /j ~~ ~~ f3 ". ~I~ 1Q~S ...,;l:~ ~~~. ~~~~ l~~~ ~lij, ~ ~~m~ ~~81~ li",,>t>- gr~~ ~i~\u ~ ;ti!: <,,) ~Cl: ~ ~ ;!~l3~ ~~~~ ~~~~ 5 ~ ~~Bi~ M ~~ ~ \u~~~ ~ i!:~~Q.: ~~~ ----......--.~- .. 1IQ : I ;I'i:. III ' i IS :; ~ ~~. I ~. I I' I '1 II , . II Ii Ii I I il il . .~~i . . & .'.. j :t "~IJ ! ...1~~ EXHIBIT L (Intentionally Deleted) EXHIBIT M (Depiction of Parcel 2 Grading) -..-....--.........-..... ~ ..... C) -.J , , ; : : : , ' , . , ! ~ , , . I \ .~ : \ , \ : \ , . I ' I - It , . · · i I .1 it a~l ~il m'II:! , :1 ml:i . I t..,JJ l_., '" ' r".... a"., I t"::. ....:: ..a.aa.a.. Jr.,....1 EXHIBIT N (Depiction of Alternative Access Points and Alignments Cherry Street Right-of Way Section 4.1.10) -"~",,,~""...-!..~ .... '0 ::1 C> lo.J ...: VI,e:. ~....e:. '<:.~ ':!l~~ <:~~ 0-"" ~~o ~~~~ ;;t~~;:' ~>"C>~ otO' ~ ~l~~ ~~'O,'c ~~'<:.~ % '&<:3 ~~'c!,~ O"'::t:'" ...,""Il.tr; VI~~O VI ",'" ~'i,,?\Q tO~"";:' ~~:... lQ~tO ~\j!~e. t'J>:: tr; 1l:'<:.~~ ~lo.J'i?~~ ~~;:,'<:.Il. OX) ... ~ ~ ~1 ~ \ ' \ \~ 1: ~ i'\\ i ~t t \ i J ~ I , \~ I \ \ \ \ ~ f. ! . 'I · 1 l 'O::lN'~', ~-'. ;z/. Gl"" . ) .~~ ~ ","';":. {Dl.\';t\ :, ,. ~ t.1,7. ;..,..... 0. r- - ,II @) '0 :.1 coa '0 ::1 <(.4- ~\ t>~ 't:'{; u u -----;;--_...~~~ -~~ 10 '0 :.1 ---- V'"\IO~ -!O ),l.\? 3O\~;!t\~ .IIJ ~ .---- RESOLUTION NO. 07- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA APPROVING THAT CERTAIN AGREEMENT ENTITLED "OPERATING COVENANT AGREEMENT (PROFESSIONAL HOSPITAL SUPPLY) BY AND BETWEEN THE CITY OF TEMECULA AND PROFESSIONAL HOSPITAL SUPPLY, INC." THE CITY COUNCIL OF THE CITY OF TEMECULA DOES HEREBY RESOLVE AS FOLLOWS: 1. Recitals. The City Council does hereby find determine and declare that: A. The City and Professional Hospital Supply, Inc. ("PHS") propose to enter into that certain agreement entitled: "Operating Covenant Agreement (Professional Hospital Supply) by and between the City of Temecula and Professional Hospital Supply, Inc." ("Agreement") that will provide for the deferral of approximately $2 million in development fees to the City in return for PHS expanding its facility in Temecula, adding additional employees and agreeing to maintain its point of sale for sales taxes in the City of Temecula. B. Professional Hospital Supply, Inc., ("PHS") is a California corporation engaged in the commercial business of supplying, packaging, manufacturing, distributing, and delivering medical and surgical supplies. PHS currently services the southern California market area from facilities located in the City at 41980 Winchester Road, 41995 Zevo Drive, and 43225 Business Park Drive and, at which it employs 1,100 persons, and from which it generates substantial sales tax revenue for the City. C. As part of PHS's ongoing efforts to expand its operations in southern California, it plans to relocate its operations to a new facility ("Temecula Facility") to be built on approximately 32 acres within the City, generally located at the corner of Winchester Road and Dendy Parkway, pursuant to a Development Agreement between the City, Temecula Properties LLC, and PHS, dated as of September 25, 2007. The estimated cost of the Temecula Facility is $59 million. D. PHS expects to employ an additional approximately 300 persons at the Temecula facilities over the next five (5) years above and beyond those persons it currently employs in the City. E. PHS and the City desire to provide for PHS' continued operation of its business within the City. F. The City Council finds and determines that performance of the City's obligations under this Agreement and the undertakings of PHS required by this Agreement will promote the public health, safety, and welfare of the citizens of the City and will be of substantial economic benefit to the City as the Agreement will: (1) generate new short term and long term quality employment opportunities within the City; (2) generate new tax revenues that will assist the City in funding public services for the residents and businesses within the City; (3) preserve and enhance the job/housing balance described in the City's General Plan and various regional plans; (4) develop new and expanded commercial and business facilities; (5) expand and enhance the City's tax base through increased property values and consumer purchasing; and (6) promote the stability and diversification of the City's economy. G. The City Council further finds and determines that the Agreement is a lawful and valid exercise of the City's powers under the laws of the State of California. H. This Agreement places no obligation on the City beyond the year of its execution unless and until: (1) PHS or the Developer become obligated to pay any Development Impact Fee related to the Temecula Facility, and (2) PHS continues in business and maintains its Transaction Point for all PHS Business in the State of California within the City. I. On September 25, 2007 the City Council adopted Resolution No. 2007- entitled: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA APPROVING A MITIGATED NEGATIVE DECLARATION FOR THE TEMECULA PROPERTIES LLC/PROFESSIONAL HOSPITAL SUPPLY PROJECT ON AN 84-ACRE SITE LOCATED AT THE NORTHWEST CORNER OF DENDY PARKWAY AND WINCHESTER ROAD AS A FUTURE SPECIFIC PLAN AREA (APN 909-370-018 AND 909-370-032) WHICH CONSISTS OF PLANNING APPLICATIONS NO. PA07-0048, A GENERAL PLAN AMENDMENT, PA07-0220, A DEVELOPMENT AGREEMENT; PA06-0370, A TENTATIVE MAP, AND PA06-0369 AND PA07-0090, A DEVELOPMENT PLAN WITH A MINOR EXCEPTION." This Resolution approved the Mitigated Negative Declaration for the physical development of the property described therein, including the PHS Facilities. No further action under the California Environmental Quality Act is required for the Agreement as the Agreement pertains only to financial matters associated with the physical development described in the Mitigated Negative Declaration. J. All legal prerequisites to the adoption of this Resolution have occurred. K. This Agreement is a contract within the meaning of Section 53511 (a) of the California Government Code and therefore subject to a validation action pursuant to Section 860 of the California Code of Civil Procedure. 2. Approval of Aareement. The City Council of the City of Temecula hereby approves that certain agreement entitled "Operating Covenant Agreement (Professional Hospital Supply) by and between the City of Temecula and Professional Hospital Supply, Inc." ("Agreement"), with such changes to the Agreement as may be mutually agreed upon by PHS and the City Manager and which are in substantial conformance with the form of such Agreement attached hereto as Exhibit A. The Mayor is hereby authorized to execute the Agreement on behalf of the City. A copy of the final Agreement when executed by the Mayor and PHS shall be placed on file in the Office of the City Clerk. 3. Authoritv of Citv Manaaer. The City Manager (or his designee), is hereby authorized, on behalf of the City, to take all actions necessary and appropriate to carry out and implement the Agreement and to administer the City's obligations, responsibilities and duties to be performed under the Agreement, including but not limited to, approval and execution on behalf of the City of acceptances, certificates, certificates of completion and such other implementing agreements and documents as contemplated, necessary or described in the Agreement. 4. Certification. The City Clerk shall certify to the adoption of this Resolution. This Resolution shall take effect upon its adoption. PASSED, APPROVED, AND ADOPTED by the City Council of the City of Temecula this 25th day of September , 2007. , Mayor ATTEST: Susan W. Jones, MMC City Clerk [SEAL] STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss CITY OF TEMECULA ) I, Susan W. Jones, MMC, City Clerk of the City of Temecula, do hereby certify that the foregoing Resolution No. was duly and regularly adopted by the City Council of the City of Temecula at a meeting thereof held on the 25th day of September , 2007, by the following vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: ABSTAIN: COUNCIL MEMBERS: Susan W. Jones, MMC City Clerk OPERATING COVENANT AGREEMENT (Professional Hospital Supply) by and between the CITY OF TEMECULA, a California municipal corporation and general law city, and PROFESSIONAL HOSPITAL SUPPLY, INC., Dated as of September 25, 2007 for reference purposes only. RVPUB\MGRANT\730567.4 Final 9/17/2007 CITY OF TEMECULA OPERA TING COVENANT AGREEMENT (Professional Hospital Supply) THIS OPERATING COVENANT AGREEMENT (Professional Hospital Supply) (this "Agreement") is entered into by and between the CITY OF TEMECULA, a California municipal corporation and general law city (the "City"), and PROFESSIONAL HOSPITAL SUPPLY, INC., a California corporation ("PHS"). This Agreement is dated as of September 25, 2007, for reference purposes only (the "Reference Date"). RECIT ALS The City and PHS enter into this Agreement with reference to the following recited facts (each a "Recital"): A. PHS is a California corporation licensed to do business in this state and is engaged in the commercial business of supplying, packaging, manufacturing, distributing, and delivering medical and surgical supplies. PHS currently services the southern California market area from facilities located in the City at 41980 Winchester Road, 41995 Zevo Drive, and 43225 Business Park Drive and, at which it employs 1,100 persons, and from which it generates substantial sales tax revenue for the City. B. As part of PHS's ongoing efforts to expand its operations in southern California, it plans to relocate its operations to a new facility ("Temecula Facility") to be built on approximately 32 acres within the City, generally located at the corner of Winchester Road and Dendy Parkway, pursuant to a Development Agreement between the City and Temecula Properties LLC ("Developer"), dated as of September 25, 2007. The estimated cost of the Temecula Facility is $59,000,000. C. PHS expects to employ an additional approximately 300 persons at the Temecula facilities over the next five (5) years above and beyond those persons it currently employs in the City. D. PHS and the City desire to provide for PHS' continued operation of its business within the City. E. The City Council finds and determines that performance of the City's obligations under this Agreement and the undertakings of PHS required by this Agreement will promote the public health, safety, and welfare of the citizens of the City and will be of substantial economic benefit to the City as the Agreement will: (1) generate new short term and long term quality employment opportunities within the City; (2) generate new tax revenues that will assist the City in funding public services for the residents and businesses within the City; (3) preserve and enhance the job/housing balance described in the City's General Plan and various regional plans; (4) develop new and expanded commercial and business facilities; (5) expand and enhance the City's tax base through increased property values and consumer purchasing; and (6) promote the stability and diversification of the City's economy. RVPUB\MGRANT\730567.4 Final 9/17/2007 -1- F. This Agreement places no obligation on the City beyond the year of its execution unless and until: (I) PHS or the Developer become obligated to pay any Development Impact Fee related to the Temecula Facility, and (2) PHS continues in business and maintains its Transaction Point for all PHS Business in the State of California within the City. G. This Agreement is a contract within the meaning of Section 53511(a) of the California Government Code and therefore subject to a validation action pursuant to Section 860 of the California Code of Civil Procedure. AGREEMENT NOW, THEREFORE, IN CONSIDERATION OF THE PROMISES SET FORTH IN THIS AGREEMENT, THE CITY AND PHS AGREE, AS FOLLOWS: I. Definitions. All initially capitalized terms used in this Agreement shall have the meanings set forth in this Section lor, if not set forth in this Section I, where such terms first appear in this Agreement, unless the context of usage requires another meaning. 1.1 "Actual City Damages" means, following a Default by PHS under Section 3 of this Agreement, an amount determined by subtracting the Taxable Sales Revenue from the Maximum City Damages. 1.2 "Affiliate" of any Person means any other Person Controlling or Controlled by or under common Control with the Person. "Affiliated" shall have the correlative meaning. 1.3 "Annual Report" means a written report stating the PHS Taxable Sales for a particular Operating Year. 1.4 "Annual Report Date" means the date that is ninety (90) days following the last day of the immediately preceding Operating Year. 1.5 "City" means the City of Temecula, a California municipal corporation and general law city. 1.6 "City Manager" means the City Manager of the City or his or her designee or successor in function. 1. 7 "City Parties" means, collectively, the City, its elected officials, employees, attorneys, and other agents. 1.8 "City Party" means, individually, the City, its elected officials, employees, attorneys, or other agents. 1.9 "Control" means possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a Person, whether by ownership of Equity Interests, by contract, or otherwise. 1.10 "Controlling" and "Controlled" mean exercising or having Control. -2- RVPUBIMGRANT\730567.4 Final 9/17/2007 1.11 "Default" is defined in Section 8. 1.12 "Damages Calculation Date" means, with the respect to the calculation of Actual City Damages upon PHS's or its transferee's relocation of the Transaction Point outside of the City prior to the expiration of the Transaction Point Maintenance Period, the date of such relocation. 1.13 "Developer" means Temecula Properties LLC, a California limited liability company. 1.14 "Development Agreement" means that certain development agreement between the City of Temecula and Temecula Properties LLC dated as of September 25,2007,2007. 1.15 "Development Fees" means those development impact fees and other fees and charges imposed by the City against PHS or the Developer in connection with the issuance of permits, entitlements and other approvals required in connection with the development and operation of the Temecula Facility, including application fees, inspection fees, building permit fees, and capital facilities fees. 1.16 "Effective Date" is defined in Section 2.1. 1.17 "Equity Interest" means all or any part of any direct or indirect equity or ownership interest(s) (whether stock, partnership interest, beneficial interest in a trust, membership interest in a limited liability company, or other interest of an ownership or equity nature) in any entity, at any tier of ownership, that directly or indirectly owns or holds any ownership or equity interest in a Person. 1.18 "Federal" means of or related to the government of the United States of America. 1.19 "Fee Deferral" means the postponement of any obligation that PHS has to pay Development Fees for the Temecula Facility in accordance with Section 4.1 of this Agreement. 1.20 "Fee Forgiveness" means the City's forgiveness of any obligation that PHS has to pay deferred Development Fees in accordance with Section 4.3 of this Agreement. 1.21 "Indemnify" means, where this Agreement states that any Indemnitor shall "indemnify" any Indemnitee from, against, or for a particular matter, that the Indemnitor shall indemnify the Indemnitee and defend and hold the Indemnitee harmless from and against any and all loss, cost, claims, liability, penalties, judgments, damages, and other injury, detriment, or expense (including reasonable attorney fees, interest and penalties) that the Indemnitee suffers or incurs: (a) from, as a result of, or on account of the particular matter; or (b) in enforcing the Indemnitor's indemnity obligation. 1.22 "Indemnitee" means any Person entitled to be Indemnified under this Agreement and its agents, directors, employees, shareholders, officers and elected officials. 1.23 "Indemnitor" means a Party that agrees to Indemnify any other Person. -3- RVPUB\MGRANT\730567.4 Final 9/17/2007 1.24 "Maximum City Damages" means an amount determined by multiplying five (5) times the then-current amount of the Fee Deferral as of the Damages Calculation Date. 1.25 "Negotiation Period" means the forty-five (45) day period commencing on the effective date of any Notice of dispute given pursuant to Section 5.2(a). 1.26 "Notice" means any approval, consent, demand, designation, election, notice, or request relating to this Agreement, including any Notice of Default or termination of this Agreement. Notices shall be delivered, and shall become effective, only in accordance with Section 17. 1.27 "Notify" means give a Notice. 1.28 "Operating Year" means each twelve (12) month period during the Transaction Point Maintenance Period commencing on each July 1 and ending on each June 30 of the following calendar year, with the first Operating Year commencing on July I, 2007 and ending on June 30, 2008. The first Operating Year is sometimes referred to as "Operating Year I," with each succeeding Operating Year, thereafter, being consecutively numbered, concluding with a maximum of "Operating Year 8." 1.29 "Outside Effective Date" means November 1,2007. 1.30 "Parties" means, collectively, PHS and the City. 1.31 "Party" means, individually, PHS or the City, as applicable. 1.32 "Person" means any association, corporation, governmental entity or agency, individual, joint venture, joint-stock company, limited liability company, partnership, trust, unincorporated organization or other entity of any kind. 1.33 "PHS" means Professional Hospital Supply, Inc., a California corporation, its Affiliates and its successors, assigns and transferees of either the PHS Business or the Temecula Facility. 1.34 "PHS Business" means the business of supplying, packaging, manufacturing, distributing, and delivering medical and surgical supplies by PHS or such other business as may be lawfully conducted in the Temecula Facility and which generates Taxable Sales. 1.35 "PHS Parties" means, collectively, PHS, its Affiliates, shareholders, members, partners, directors, officers, employees, attorneys or other agents. 1.36 "PHS Party" means, individually, PHS, its Affiliates, shareholders, members, partners, directors, officers, employees, attorneys, or other agents. 1.37 "PHS Taxable Sales" means all Taxable Sales generated from the operation of the PHS Business for which the Transaction Point is within the City. 1.38 "State" means the State of California. -4- RVPUB\MGRANT\730567.4 Final 9/17/2007 1.39 "Taxable Sale" means any transaction subject to imposition of sales or use tax pursuant to the Bradley-Burns Uniform Sales and Use Tax Law (commencing with Section 7200 of the California Revenue and Taxation Code), or any successor law. 1.40 "Taxable Sales Generation" means, with respect to the calculation of Actual City Damages, the aggregate amount of PHS Taxable Sales generated by PHS or its transferee(s) from and after July 1, 2007 through the Damages Calculation Date. 1.41 "Taxable Sales Revenue" means an amount determined by multiplying the Taxable Sales Generation by 1% (.01). 1.42 "Temecula Facility" means that certain office and distribution facility of approximately 602,000 square feet to be developed at 42500 Winchester Road, Temecula, California, 92590 for use by PHS. 1.43 "Transaction Point" means the physical location that, for the purposes of allocation of sales or use tax revenues to taxing entities from a PHS Taxable Sales transaction, is the place where the subject personal property is determined to have been sold or first functionally used, as applicable, pursuant to the Bradley Burns Uniform Local Sales and Use Tax Law (Revenue and Taxations Code Sections 7200, et seq.), and the associated regulations at Title 18 California Code of Regulations Sections 1800, et seq., as such laws or regulations may be amended from time to time. 1.44 "Transaction Point Maintenance Period" is July 1,2007 to June 30, 2015. 1.45 "Transfer" of any right, obligation or property means any of the following, whether by operation of law or otherwise, whether voluntary or involuntary, and whether direct or indirect: (a) any assignment, conveyance, grant, hypothecation, mortgage, pledge, sale, or other transfer, whether direct or indirect, of all or any part of such right, obligation or property, or of any legal, beneficial, or equitable interest or estate in such right, obligation or property or any part of it (including the grant of any easement, lien, or other encumbrance); (b) any conversion, exchange, issuance, modification, reallocation, sale, or other transfer of any direct or indirect Equity Interest(s) in the owner of such right, obligation or property by the holders of such Equity Interest(s); (c) any transaction described in "b" affecting any Equity Interest(s) or any other interest in such right, obligation or property or in any such owner (or in any other direct or indirect owner at any higher tier of ownership) through any manner or means whatsoever; or (d) any transaction that is in substance equivalent to any of the foregoing. A transaction affecting Equity Interests, as referred to in clauses "b" through "d," shall be deemed a Transfer by a Person even though that Person is not technically the transferor. A "Transfer" shall not, however, include any of the foregoing (provided that the other Party to this Assignment has received Notice thereof) relating to any Equity Interest: (a) that constitutes a mere change in form of ownership with no material change in beneficial ownership and constitutes a tax-free transaction under Federal income tax law and the State real estate transfer tax; (b) to member( s) of the immediate family(ies) of the transferor(s) or trusts for their benefit; or (c) to any Person that, as of the Effective Date, holds an Equity Interest in the Person whose Equity Interest is being transferred. -5- RVPUB\MGRANT\730567.4 Final 9/17/2007 1.46 "Unavoidable Delay" means a delay in either Party performing any of its obligations under this Agreement, except payment of money, arising from or on account of any cause whatsoever beyond the Party's reasonable control, despite such Party's reasonable diligent efforts, including industry-wide strikes, labor troubles or other union activities (but only to the extent such actions do not result from the negligence or willful misconduct of the Party), casualty, war, acts of terrorism or riots. Unavoidable Delay shall not include delay caused by a Party's financial condition, illiquidity, or insolvency. 2. Effective Date. 2.1 Definition. This Agreement shall not become binding on either Party, unless and until the first date on which all of the following occur, if at all (the "Effective Date"): (a) Execution and Delivery of Agreement by PHS. This Agreement IS executed by PHS and delivered to the City; (b) Approval of Agreement by City Council. This Agreement is approved by the City Council of the City at a public meeting of the City Council, following all legally required notices and hearings, and such approval is evidenced by a resolution duly adopted by the City Council of the City; and (c) Execution and Delivery of Agreement by City. This Agreement IS executed by the authorized representative(s) of the City and delivered to PHS. 2.2 Termination on Failure to Occur. If all of the conditions precedent to the Effective Date set forth in Section 2.1 are not satisfied on or before the Outside Effective Date, then no part of this Agreement shall become binding on or enforceable against either Party and any prior signatures or approvals of this Agreement by either the City or PHS shall be void and of no further force or effect. 3. Ooeration Covenant. PHS covenants to the City to maintain, or to cause to be maintained, the Transaction Point for all Taxable Sales by the PHS Business to points within the State of California in the City continuously throughout the Transaction Point Maintenance Period. 4. Develooment Imoact Fee Deferral and Fore:iveness. 4.1 Fee Deferral. Following the Effective Date, whenever in a given Operating Year, PHS or the Developer becomes obligated to pay any Development Fees for the Temecula Facility, the City shall defer such obligation until the first day of the subsequent Operating Year. If on the first day of a given Operating Year, the Transaction Point for all Taxable Sales by the PHS Business within the State of California is in the City and has been so for the entirety of the preceding Operating Year, then the City shall defer any and all previously deferred obligation for an additional year. The maximum total amount that may be deferred in this manner is Two Million Dollars ($2,000,000). Notwithstanding anything in this Section to the contrary, no Development Fee obligation shall be deferred past the first day after the end of Operating Year 8, at which time the deferred fees shall be forgiven as provided in Section 4.3. -6- RVPUB\MGRANT\730567.4 Final 9/17/2007 4.2 Fee Reimbursement. If prior to the Effective Date the Developer or PHS pays any Development Impact Fees for the Temecula Facility that would have been subject to the Fee Deferral had it come due after the Effective Date, the City shall reimburse the amount of any such payment in full to the Developer or PHS, as applicable, within thirty (30) days following the Effective Date, and any amount so reimbursed shall be counted towards the maximum amount of the Fee Deferral. 4.3 Fee Forgiveness. If PHS maintains or causes to be maintained the Transaction Point in the City for the entirety of the Transaction Point Maintenance Period, or pays the Actual City Damages pursuant to Section 9, the City shall forgive any obligation of PHS or any other party to pay any and all Development Fees that have been deferred pursuant to this Agreement. 5. Annual Reoorts. 5.1 Reporting. On or before each Annual Report Date, PHS shall deliver the applicable Annual Report to the City. 5.2 Dispute Resolution. (a) Negotiation Period. Within thirty (30) days following the earlier of: (i) the City's receipt of the Annual Report for a particular Operating Year; or (ii) the Annual Report Date for such Operating Year, the City may give Notice of any dispute regarding the amount of PHS Taxable Sales reported by PHS in the Annual Report for the particular Operating Year. Any such Notice of dispute shall state all bases for the City's disagreement with the Annual Report, in detail. Any grounds for disagreement not stated in such Notice shall be waived. If the City does not give Notice of a dispute regarding the amount of PHS Taxable Sales reported by PHS in the Annual Report for the particular Operating Year within thirty (30) days following the applicable Annual Report Date, the City shall have waived any objection to the amount of PHS Taxable Sales reported by PHS for the particular Operating Year. If the City gives Notice of its objection to an Annual Report, the Parties shall immediately commence good-faith negotiations to resolve the dispute(s) stated in the Notice. The Parties shall continue such negotiations until the earlier of: (1) the end of the Negotiation Period; or (2) the dispute is resolved by a written agreement between the Parties. Notwithstanding any other part of this Section 5, the Parties may agree in writing to extend the duration of the Negotiation Period for any amount of time. (b) ARBITRATION OF DISPUTES. ANY DISPUTE RELATING TO THE AMOUNT OF PHS TAXABLE SALES REPORTED BY PHS IN AN ANNUAL REPORT FOR A PARTICULAR OPERATING YEAR SHALL BE SETTLED BY ARBITRATION ADMINISTERED BY THE AMERICAN ARBITRATION ASSOCIATION IN ACCORDANCE WITH ITS COMMERCIAL ARBITRATION RULES, WHICH SHALL BE COMMENCED WITHIN SIXTY (60) DA YS FOLLOWING THE END OF THE APPLICABLE NEGOTIATION PERIOD. WITHIN FIFTEEN (15) DAYS AFTER THE COMMENCEMENT OF ARBITRATION, EACH PARTY SHALL SELECT ONE PERSON TO ACT AS AN ARBITRATOR. THE TWO SELECTED ARBITRATORS SHALL SELECT A THIRD ARBITRATOR, WITHIN TEN (10) DAYS FOLLOWING THEIR APPOINTMENT. IF EITHER PARTY FAILS TO SELECT AN ARBITRATOR, THEN THE ARBITRATOR SELECTED BY THE OTHER PARTY SHALL ARBITRATE THE DISPUTE, WITHOUT -7- RVPUB\MGRANT\730567.4 Final 9/17/2007 ANY OTHER ARBITRATOR. IF THE ARBITRATORS SELECTED BY THE PARTIES ARE UNABLE TO OR FAIL TO AGREE UPON A THIRD ARBITRATOR, THE THIRD ARBITRA TOR SHALL BE SELECTED BY THE AMERICAN ARBITRATION ASSOCIATION. EACH ARBITRATOR SHALL BE A MEMBER OF THE STATE BAR OF CALIFORNIA, ACTIVELY ENGAGED IN THE PRACTICE OF LAW FOR AT LEAST TEN (10) YEARS, OR A RETIRED JUDGE OF THE SUPERIOR COURT OF THE STATE OF CALIFORNIA. THE PLACE OF ARBITRATION SHALL BE THE CITY OF TEMECULA, CALIFORNIA. EACH PARTY SHALL SUBMIT TO THE ARBITRATOR(S) AND EXCHANGE WITH EACH OTHER, IN ADVANCE OF THE ARBITRATION HEARING, THEIR LAST, BEST OFFERS. THE ARBITRA TOR(S) SHALL BE LIMITED TO A WARDING ONLY ONE OR THE OTHER OF THE TWO FIGURES SUBMITTED. EACH P ARTY SHALL BEAR ITS OWN COSTS AND EXPENSES AND AN EQUAL SHARE OF THE ARBITRATOR(S)' AND ADMINISTRATIVE FEES OF ARBITRATION. THE PARTIES SHALL HAVE THE RIGHTS OF DISCOVERY PROVIDED FOR IN CALIFORNIA CODE OF CIVIL PROCEDURE SECTION 1283.05, WHICH IS INCORPORATED INTO THIS AGREEMENT BY THIS REFERENCE. EXCEPT AS MAY BE REQUIRED BY LAW, NEITHER PARTY NOR AN ARBITRATOR MAY DISCLOSE THE EXISTENCE, CONTENT OR RESULTS OF ANY ARBITRATION UNDER THIS AGREEMENT, WITHOUT THE PRIOR WRITTEN CONSENT OF BOTH PARTIES. THE DECISION OF THE ARBITRATOR(S) SHALL BE BINDING ON BOTH PARTIES AND NO APPEAL OR OTHER SUBSEQUENT LEGAL PROCEEDING OR ACTION SHALL BE TAKEN BY EITHER PARTY REGARDING SUCH DECISION OR A WARD. (c) ARBITRATION NOTICE. NOTICE: BY INITIALING IN THE SPACE BELOW YOU ARE AGREEING TO HAVE ANY DISPUTE ARISING OUT OF THE MATTERS INCLUDED IN THIS 'ARBITRATION OF DISPUTES' PROVISION DECIDED BY NEUTRAL ARBITRATION AS PROVIDED BY CALIFORNIA LAW AND YOU ARE GIVING UP ANY RIGHTS YOU MIGHT POSSESS TO HAVE THE DISPUTE LITIGATED IN A COURT OR JURY TRIAL. BY INITIALING IN THE SPACE BELOW YOU ARE GIVING UP YOUR JUDICIAL RIGHTS TO DISCOVERY AND APPEAL, UNLESS THOSE RIGHTS ARE SPECIFICALLY INCLUDED IN THE 'ARBITRATION OF DISPUTES' PROVISION. IF YOU REFUSE TO SUBMIT TO ARBITRATION AFTER AGREEING TO THIS PROVISION, YOU MAY BE COMPELLED TO ARBITRATE UNDER THE AUTHORITY OF THE CALIFORNIA CODE OF CIVIL PROCEDURE. YOUR AGREEMENT TO THIS ARBITRATION PROVISION IS VOLUNTARY. (d) ARBITRATION CONSENT. WE HAVE READ AND UNDERSTAND THE FOREGOING AND AGREE TO SUBMIT DISPUTES ARISING OUT OF THE MATTERS INCLUDED IN THE 'ARBITRATION OF DISPUTES' PROVISION TO NEUTRAL ARBITRATION. INITIALS OF AUTHORIZED CITY REPRESENT A TIVE(S) 6. Adeauate Consideration. INITIALS OF AUTHORIZED PHS REPRESENT A TIVE(S) -8- RVPUB\MGRANT\730567.4 Final 9/17/2007 6.1 Exchange of Consideration. The Parties have determined and agreed that: (i) the Fee Deferral and Fee Forgiveness represents fair consideration to PHS for entering into and performing its covenants and other obligations under this Agreement; and (ii) that PHS' performance of its covenants and other obligations under this Agreement represent fair consideration to the City for the Fee Deferral and Fee Forgiveness and performance of the City's other obligations under this Agreement. 6.2 No Unstated Consideration. Both Parties acknowledge and agree that neither Party will receive any compensation under this Agreement other than expressly set forth in this Agreement. Neither Party shall be entitled to any reimbursement or other compensation from the other Party for any costs incurred by such Party in performing or preparing to perform its covenants or other obligations under this Agreement. 7. Coooeration. 7.1 Permits and Authorizations. The City agrees to process all applications to the City by PHS or the Developer for authorizations, consents, permits or Approvals regarding use or development of the Temecula Facility in an expeditious manner. The City shall not charge additional fees relating to expeditious processing of such applications. The City further agrees to reasonably cooperate with PHS and/or the Developer, at no cost to the City, in securing any County, State, Federal permits, authorizations or consents that may be required regarding use or development of the Temecula Facility. The cooperation obligations of the City under this Section 7.1 shall not require the City to make any economic contribution or incur any material cost or expense. 7.2 Industrial Development Bonds. If requested by PHS, the City agrees to reasonably cooperate with PHS or the Developer regarding the issuance of industrial development bonds, as may be allowed by State or Federal law. 7.3 Timing. The agreements and obligations of the City under this Section 8 shall not be limited to the Transaction Point Maintenance Period, but shall continue as long as the PHS Business is located within the City. 8. Defaults. Subject to any extensions of time provided for in this Agreement for Unavoidable Delay, the occurrence of any of the following events shall constitute a "Default": 8.1. Monetary Default. The failure by any Party to perform any obligation of such Party under this Agreement for the payment of money, if such failure is not cured within fifteen (15) days after the non-performing Party's receipt of Notice from the injured Party that such obligation was not performed, as and when due; or 8.2 Non-Monetary Default. The failure by any Party to perform any of its obligations set forth in this Agreement, other than obligations subject to Section 8.1 if such failure is not cured within thirty (30) days after the non-performing Party's receipt of Notice from the injured Party that such obligation was not performed, as and when due, or, if such failure is of a nature that cannot reasonably be cured within thirty (30) days, the failure by such Party to commence such cure within thirty (30) days after receipt of such Notice and to, thereafter, diligently prosecute such cure to completion. -9- RVPUB\MGRANT\730567.4 Final 9/17/2007 9. Citv Damae:es for PHS' ~l:!n:~.<':11 of Section 3 Oblie:ation. 9.1 Subject to the Notice and opportunity to cure requirements of Section 8 and notwithstanding any other provision of this Agreement to the contrary, as its sole and exclusive remedy for PHS's Default of its obligation under Section 3 of this Agreement, the City shall receive from PHS an amount equal to the Actual City Damages computed as of the Damages Calculation Date. An illustration of the calculation of Actual City Damages, using hypothetical amounts, is attached hereto as Exhibit "A". 9.2 Waiver. THE CITY ACKNOWLEDGES THAT IT IS A WARE OF THE MEANING AND LEGAL EFFECT OF CALIFORNIA CIVIL CODE SECTION 1542, WHICH PROVIDES: A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER WOULD HAVE MA TERIALL Y AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR. 9.3 Intent to Limit Remedies. CALIFORNIA CIVIL CODE SECTION 1542 NOTWITHSTANDING, IT IS THE INTENTION OF THE CITY TO BE BOUND BY THE LIMITATION ON DAMAGES AND REMEDIES SET FORTH IN THIS SECTION 9, AND THE CITY HEREBY WAIVES AND RELEASES ANY AND ALL OTHER CLAIMS AGAINST PHS FOR MONETARY DAMAGES OR OTHER LEGAL OR EQUITABLE RELIEF RELATED TO ANY DEF AUL T OR BREACH OF THIS AGREEMENT BY PHS, EXCEPT AS SPECIFICALLY PROVIDED IN SECTION 9.1, WHETHER OR NOT ANY SUCH WAIVED OR RELEASED CLAIMS WERE KNOWN OR UNKNOWN TO THE CITY AS OF THE EFFECTIVE DATE OF THIS AGREEMENT. THE CITY WAIVES THE BENEFITS OF CALIFORNIA CIVIL CODE SECTION 1542 AND ALL OTHER STATUTES AND JUDICIAL DECISIONS (WHETHER STATE OR FEDERAL) OF SIMILAR EFFECT WITH REGARD TO THE LIMITATIONS ON DAMAGES AND REMEDIES AND WAIVERS AND RELEASES OF ANY SUCH DAMAGES AND REMEDIES CONTAINED IN THIS SECTION 9. INITIALS OF AUTHORIZED CITY REPRESENT A TIVE(S) 10. PHS' Remedv. 10.1 Recovery of Fee Waiver. Subject to the Notice and opportunity to cure requirements of Section 8 and notwithstanding any other provision of this Agreement to the contrary, PHS' sole and exclusive remedy regarding a Default by the City of its obligations concerning the Fee Deferral or Fee Forgiveness shall be (i) recovery of an amount in monetary damages equal to the Development Fees for which it or the Developer is actually liable in connection with the Temecula Facility, up to a maximum amount of Two Million Dollars -10- RVPUB\MGRANT\730567.4 Final 9/17/2007 ($2,000,000) and/or (ii) or a judicial declaration of PHS's right to such Fee Deferral or Fee Forgiveness. 10.2 Waiver. PHS ACKNOWLEDGES THAT IT IS A WARE OF THE MEANING AND LEGAL EFFECT OF CALIFORNIA CIVIL CODE SECTION 1542, WHICH PROVIDES: A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER WOULD HAVE MA TERIALL Y AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR. 10.3 Intent to Limit Remedies. CALIFORNIA CIVIL CODE SECTION 1542 NOTWITHSTANDING, IT IS THE INTENTION OF PHS TO BE BOUND BY THE LIMITATION ON DAMAGES AND REMEDIES SET FORTH IN THIS SECTION 10, AND PHS HEREBY WAIVES AND RELEASES ANY AND ALL OTHER CLAIMS AGAINST THE CITY FOR MONET AR Y DAMAGES OR OTHER LEGAL OR EQUITABLE RELIEF RELATED TO ANY DEFAULT OR BREACH OF THIS AGREEMENT BY THE CITY, EXCEPT AS SPECIFICALLY PROVIDED IN SECTION 10.1, WHETHER OR NOT ANY SUCH WAIVED OR RELEASED CLAIMS WERE KNOWN OR UNKNOWN TO PHS AS OF THE EFFECTIVE DATE OF THIS AGREEMENT. PHS WAIVES THE BENEFITS OF CALIFORNIA CIVIL CODE SECTION 1542 AND ALL OTHER STATUTES AND JUDICIAL DECISIONS (WHETHER STATE OR FEDERAL) OF SIMILAR EFFECT WITH REGARD TO THE LIMIT A TIONS ON DAMAGES AND REMEDIES AND WAIVERS AND RELEASES OF ANY SUCH DAMAGES AND REMEDIES CONTAINED IN THIS SECTION 10. INITIALS OF AUTHORIZED PHS REPRESENT A TIVE(S) II. Indemnification. 11.1 Obligations. PHS shall Indemnify the City Parties against any wrongful intentional act or negligence of the PHS Parties relating to performance of this Agreement. The City shall Indemnify the PHS Parties against any wrongful intentional act or negligence of the City Parties relating to performance of this Agreement. 11.2 Indemnitee Negligence. Notwithstanding anything to the contrary in this Agreement, no Indemnitor shall be required to Indemnify any Indemnitee to the extent of the Indemnitee's wrongful intentional acts or negligence. 11.3 Indemnification Independent of Insurance. The Parties' indemnification obligations under this Agreement shall not, in any way, be restricted or limited to and are independent of any insurance carried by a Party. -11- RVPUB\MGRANT\730567.4 Final 9/17/2007 11.4 Survival of Indemnification and Defense Obligations. The indemnification and defense obligations of the Parties under this Agreement shall survive the expiration or earlier termination of this Agreement, until all claims against any of the Indemnitees involving any of the indemnified matters are fully, finally, absolutely and completely barred by applicable statutes of limitations. 11.5 Independent Duty to Defend. The duty to defend under this Agreement is separate and independent of the duty to Indemnify. The duty to defend applies regardless of whether the issues of negligence, liability, fault, default or other obligation on the part of the Indemnitor or the Indemnitee have been determined. The duty to defend applies immediately, regardless of whether the Indemnitee has paid any sums or incurred any detriment arising out of or relating (directly or indirectly) to any claims. It is the express intention of the Parties that an Indemnitee be entitled to obtain summary adjudication or summary judgment regarding an Indemnitor's duty to defend the Indemnitee at any stage of any claim or suit within the scope of the Indemnitor's indemnity obligations under this Agreement. 11.6 Indemnification Procedures. Wherever this Agreement requires any Indemnitor to Indemnify any Indemnitee: (a) Prompt Notice. The Indemnitee shall promptly notify the Indemnitor of any claim. To the extent, and only to the extent, that the Indemnitee fails to give prompt notice of a claim and such failure materially prejudices the Indemnitor in providing indemnity for such claim, the Indemnitor shall be relieved of its indemnity obligations for such claim. (b) Selection of Counsel. The Indemnitor shall select counsel reasonably acceptable to the Indemnitee. Counsel to Indemnitor's insurance carrier that is providing coverage for a claim shall be deemed reasonably satisfactory. Even though the Indemnitor shall defend the action, Indemnitee may, at its option and its own expense, engage separate counsel to advise it regarding the claim and its defense. The Indemnitee's separate counsel may attend all proceedings and meetings. The Indemnitor's counsel shall actively consult with the Indemnitee's separate counsel. The Indemnitor and its counsel shall, however, fully control the defense, except to the extent that the Indemnitee waives its rights to indemnity and defense for such claim. (c) Cooperation. The Indemnitee shall reasonably cooperate with the Indemnitor's defense of the Indemnitee, provided the Indemnitor reimburses the Indemnitee's actual out of pocket expenses (including attorney fees) of such cooperation. (d) Settlement. The Indemnitor may, with the Indemnitee's consent, not to be unreasonably withheld, settle a claim. The Indemnitee's consent shall not be required for any settlement by which all of the following occur: (i) the Indemnitor procures (by payment, settlement or otherwise) a release of the Indemnitee from the subject claim(s) by which the Indemnitee need not make any payment or other performance to the claimant; (ii) neither the Indemnitee nor the Indemnitor on behalf of the Indemnitee admits liability; and (iii) the continued effectiveness of this Agreement is not jeopardized in any way. -12- RVPUB\MGRANT\730567.4 Final 9/17/2007 12. Citv Contract Administration. The City Manager shall administer this Agreement on behalf of the City. The City Manager may designate any member or members of the City staff to carry out such responsibilities. Except as otherwise expressly provided in this Agreement, the City Manager has the authority to approve or consent to those matters in this Agreement requiring the City's approval or consent and to make all other decisions on behalf of the City, subject to the City Manager's retained and reserved sole and absolute discretion to seek City Council approval of any such matter. 13. Governine: Law. The substantive and procedural laws of the State shall govern the interpretation and enforcement of this Agreement, without application of conflicts of laws principles. 14. Transfer. PHS may Transfer, in whole or in part, its rights or obligations under this Agreement to one or more transferees with the prior written consent of the City, which will not be unreasonably withheld, delayed, or conditioned, and which shall be given if the proposed transferee(s) agree(s) to operate a lawful business generating Taxable Sales from the Temecula Facility and assume(s) PHS's obligations under this Agreement pursuant to a written agreement mutually and reasonably acceptable to the City, PHS and the transferee(s). The City's approval shall be deemed irrevocably given if the City fails to approve or disapprove (a) proposed transferee(s) within thirty (30) days following PHS's written request for approval. 15. Non-liabilitv of City Officials and Emplovees. No elected official, officer, contractor, consultant, attorney, employee or agent of the City shall be personally liable to PHS, any voluntary or involuntary successor or assign of PHS, or any lender or other Person holding an interest in the Temecula Facility or PHS, in the event of any Default or breach of this Agreement by the City, or for any amount that may be or become due to PHS or its successors or assigns under this Agreement, or on any obligations arising under this Agreement. No shareholder, member, partner, principal, officer, attorney, employee or agent of PHS shall be personally liable to the City, any voluntary or involuntary successor or assign of the City, or any lender or other Person holding an interest in this Agreement or the Temecula Facility, in the event of any Default or breach of this Agreement by PHS, or for any amount that may be or become due to the City or its successors or assigns under this Agreement, or on any obligations arising under this Agreement. 16. Notices. 16.1 Deliverv. Any and all Notices submitted by either Party to the other Party pursuant to or as required by this Agreement shall be in writing and addressed to the City or PHS (and their designated copy recipients) as set forth in Section 16.2. Notices (including any required copies) shall be delivered personally, by Federal Express, United Parcel Service or other nationally recognized overnight (one-night) courier service or by registered or certified United States mail, return receipt requested and postage prepaid, to the addresses set forth in Section 16.2, in which case they shall be deemed delivered on the date of delivery (or when delivery has been attempted twice, as evidenced by the written report of the courier service) to such addressees) or on the fourth (4th) day following deposit with the United States Postal Service for delivery. Either Party may change its address for delivery of Notices by Notice in compliance with this Agreement. Notice of a change of address shall be effective only upon receipt. Any -13- RVPUB\MGRANT\730567.4 Final 9/17/2007 Party giving a Notice may request that the recipient acknowledge receipt of such Notice. The recipient shall promptly comply with any such request, but failure to do so shall not limit the effectiveness of any Notice. Any attorney may give any Notice on behalf of its client. 16.2 Addresses. The following are the authorized addresses for the submission of Notices, demands or communications to the Parties, under this Agreement, as of the Reference Date: To City: City of Temecula 43200 Business Park Drive Temecula, CA 92590 Attention: City Manager With a copy to Richards, Watson & Gershon 355 South Grand Avenue Los Angeles, CA 90071 Attention: Peter M. Thorson To PHS: Professional Hospital Supply, Inc. 41980 Winchester Road Temecula, CA 92590 Attention: John Augustine, CFO With a copy to: Best Best & Krieger LLP P.O. Box 1028 Riverside, CA 92502 Attention: Michael Grant 17. Jurisdiction and Venue. The Parties each acknowledge and agree that this Agreement is entered into and is to be fully performed in the City of Temecula, County of Riverside, State of California, and that all legal actions arising from this Agreement shall be filed in the Superior Court of the State of California in and for the County of Riverside, California, or the United States District Court with jurisdiction in the County of Riverside, California. 18. Incomoration of Recitals. The Recitals of fact set forth preceding this Agreement are true and correct and are incorporated into this Agreement, in their entirety, by this reference. 19. Principles of Interpretation. No inference in favor of or against any Party shall be drawn from the fact that such Party has drafted any part of this Agreement. The Parties have both participated substantially in the negotiation, drafting, and revision of this Agreement, with advice from counsel and other advisers of their own selection. A term defined in the singular in this Agreement may be used in the plural, and vice versa, all in accordance with ordinary principles of English grammar, which also govern all other language in this Agreement. The words "include" and "including" shall be construed to be followed by the words: "without limitation." Each collective noun shall be interpreted as if followed by the words "(or any part of it)," except where the context clearly requires otherwise. Every reference to any document, including this Agreement, refers to such document as modified from time to time (excepting any modification -14- RVPUB\MGRANT\730567.4 Final 9/17/2007 that violates this Agreement), and includes all exhibits, schedules, addenda and riders to such document. The word "or" includes the word "and." 20. Countemart Orie:inals: Intee:ration. This Agreement may be executed in multiple counterpart originals, each of which is deemed to be an original, but all of which taken together shall constitute one and the same instrument. This Agreement and the exhibits attached to this Agreement represent the entire understanding of the Parties and supersede all previous negotiations, letters of intent, memoranda of understanding or agreements between the Parties with respect to all or any part of the subject matter of this Agreement. 21. Severabilitv. If any term or provision of this Agreement or its application to any Party or circumstance shall to any extent be invalid or unenforceable, then the remainder of this Agreement or the application of such term or provision to Persons or circumstances, except those as to which it is invalid or unenforceable, shall not be affected by such invalidity. All remaining provisions of this Agreement shall be valid and be enforced to the fullest extent Law allows. 22. No Waiver. Failure to insist on anyone occasion upon strict compliance with any of the terms, covenants or conditions of this Agreement shall not be deemed a waiver of such term, covenant or condition, nor shall any waiver or relinquishment of any rights or powers under this Agreement at anyone time or more times be deemed a waiver or relinquishment of such right or power at any other time or times. 23. Time is of the Essence. Time is of the essence in the performance of the Parties' obligations under this Agreement. 24. Unavoidable Delav: Extension of Time of Performance. 24.1 Notice. Subject to any specific provisions of this Agreement stating that they are not subject to Unavoidable Delay, performance by either Party under this Agreement shall not be deemed, or considered to be in Default, where any such Default is due to an Unavoidable Delay. Any Party claiming Unavoidable Delay shall Notify the other Party: (a) within ten (10) days after such Party knows of any such Unavoidable Delay; and (b) within five (5) days after such Unavoidable Delay ceases to exist. To be effective, any Notice of an Unavoidable Delay must describe the Unavoidable Delay in reasonable detail. The extension of time for an Unavoidable Delay shall commence on the date of receipt of Notice of the occurrence of the Unavoidable Delay by the Party not requesting an extension of time to perform due to such Unavoidable Delay and shall continue until the end of the condition causing the Unavoidable Delay. The Party seeking to be excused from performance shall exercise its best efforts to cure the condition causing the Unavoidable Delay, within a reasonable time. 24.2 Assumption of Economic Risks. ANYTHING IN THIS AGREEMENT TO THE CONTRARY NOTWITHSTANDING, THE PARTIES EXPRESSLY ASSUME THE RISK OF UNFORESEEABLE CHANGES IN ECONOMIC CIRCUMSTANCES AND/OR MARKET DEMAND/CONDITIONS AND WAIVE, TO THE GREATEST LEGAL EXTENT, ANY DEFENSE, CLAIM, OR CAUSE OF ACTION BASED IN WHOLE OR IN PART ON ECONOMIC NECESSITY, IMPRACTICABILITY, CHANGED ECONOMIC CIRCUMSTANCES, FRUSTRATION OF PURPOSE, OR SIMILAR THEORIES. EACH -15- RVPUB\MGRANT\730567.4 Final 9/17/2007 PARTY AGREES THAT ADVERSE CHANGES IN ECONOMIC CONDITIONS, EITHER OF SUCH PARTY SPECIFICALLY OR THE ECONOMY GENERALLY, OR CHANGES IN MARKET CONDITIONS OR DEMANDS, SHALL NOT OPERATE TO EXCUSE OR DELAY THE STRICT OBSERVANCE OF EACH AND EVERY OF THE OBLIGATIONS, COVENANTS, CONDITIONS AND REQUIREMENTS OF THIS AGREEMENT. THE PARTIES EXPRESSLY ASSUME THE RISK OF SUCH ADVERSE ECONOMIC OR MARKET CHANGES, WHETHER OR NOT FORESEEABLE AS OF THE REFERENCE DATE. INITIALS OF AUTHORIZED CITY REPRESENT A TIVE(S) INITIALS OF AUTHORIZED PHS REPRESENT A TIVE(S) 25. No Third Party Beneficiaries. The performance of the Parties' respective obligations under this Agreement is not intended to benefit any Person other than the City and PHS, except as may be expressly provided otherwise in this Agreement. No Person not a signatory to this Agreement shall have any rights or causes of action against any Party to this Agreement as a result of that Party's performance or non-performance under this Agreement, except as otherwise expressly provided in this Agreement. 26. No Other Reoresentations or Warranties. Except as expressly set forth in this Agreement, no Party makes any representation or warranty material to this Agreement to any other Party. 27. Warranties Ae:ainst Payment of Consideration for Agreement. PHS represents and warrants that PHS has not employed or retained any Person to solicit or secure this Agreement upon an agreement or understanding for a commission, percentage, brokerage, or contingent fee, excepting bona fide employees of PHS. PHS further represents and warrants that no gratuities, in the form of entertainment, gifts or otherwise have been or will be given by PHS or any of its agents, employees or representatives to any elected or appointed official or employee of the City in an attempt to secure this Agreement or favorable terms or conditions for this Agreement. Breach of the representations or warranties of this Section 27 shall automatically terminate this Agreement, without further notice to or action by either Party, and PHS shall immediately refund any Fee Waiver made prior to the date of any such termination. 28. Relationship of Parties. The Parties agree and intend that the City and PHS are independent contracting entities and do not intend by this Agreement to create any partnership, joint venture, or similar business arrangement, relationship, or association between them. 29. Survival of Ae:reement. All of the provisions of this Agreement shall be applicable to any dispute between the Parties arising from this Agreement, whether prior to or following expiration or termination of this Agreement, until any such dispute is finally and completely resolved between the Parties, either by written settlement, entry of a non-appealable judgment or expiration of all applicable limitations periods and all terms and conditions of this Agreement relating to dispute resolution and limitations on damages or remedies shall survive any expiration or termination of this Agreement. [Signatures on following page] -16- RVPUB\MGRANT\730567.4 Final 9/17/2007 CITY: SIGNATURE PAGE TO OPERA TING COVENANT AGREEMENT (Professional Hospital Supply) PHS: CITY OF TEMECULA, a California municipal corporation and general law city By: Chuck Washington Mayor ATTEST: Susan Jones, MMC City Clerk PROFESSIONAL HOSPITAL SUPPLY, INC., a California corporation By: Name: Its: By: Name: Its: APPROVED AS TO LEGAL FORM: By Peter M. Thorson City Attorney RVPUB\MGRANT\730567.4 Final 9/17/2007 -17- EXHIBIT A ILLUSTRATION OF CALCULATION OF ACTUAL CITY DAMAGES, USING HYPOTHETICAL AMOUNTS EXAMPLE 1 EXAMPLE 2 MAXIMUM CITY DAMAGES: CURRENT AMOUNT OF FEES DEFERRED $ 2,000,000 $ 1,700,000 MULTIPLIER 5 5 TOTAL 10,000,000 8,500,000 TAXABLE SALES REVENUE: PHS TAXABLE SALES THROUGH DAMAGES CALCULATION DATE 500,000,000 700,000,000 RATE 1.0% 1.0% TOTAL 5,000,000 7,000,000 ACTUAL CITY DAMAGES $ 5,000,000 $ 1,500,000 R VPUB\MGRANT\ 730567.4 A-I Project Description: Location: Applicant: General Impact: Mitigation Measure: Specific Process: Mitigation Milestone: Responsible Monitoring Party: Mitigation Monitoring Program Development Agreement between the City of Temecula and Temecula Properties, LLC, Planning Application Nos. PA07-0220 (Development Agreement), PA07-0048 (General Plan Amendment), PA06-0370 (Tentative Tract Map No. 35181), and PA06-0369 (Development Plan) for Professional Hospital Supply (PHS) Northwest corner of Winchester Road and Dendy Parkway The Garrett Group One BetterWorld Circle Temecula, CA 92590 Aesthetics Have a substantial adverse effect on a scenic vista and substantially degrade the existing visual character or quality of the site and its surroundings. 1. To ensure that the scale and character of proposed development along the hillside does not detract from the natural views, all structures associated with the development shall be designed in conformance with the General Plan requirements and Development Code standards. Specifically, the visual mass of the buildings along the hillside shall be reduced through breaks in the structure, tree plantings, articulation of the fac;:ade, and other architectural devices. 2. The development shall be designed to minimize detrimental impacts on surrounding properties, including, but not limited to, visual, noise, air quality and other environmental impacts. Strategies for minimizing the impacts include protecting any future residential areas adjacent to industrial and commercial development through screening of circulation areas, loading areas and trash collection points or other areas that could potentially be disruptive to the character of the adjacent areas. Planning staff will verify compliance with the above mitigation measures as part of the building plan check review process Prior to issuance of building permits Planning Department C:\WI N DOWSlapsdoclnettemp\4828\$ASQpdf857678. doc General Impact: Mitigation Measure: Specific Process: Mitigation Milestone: Responsible Monitoring Party: General Impact: Air Quality Violate any air quality standard or contribute substantially to an existing or projected air quality violation, or 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 precursors). 3. Adhere to best management practices which include the application of water on disturbed soils twice daily, covering haul vehicles, replanting disturbed areas as soon as practical and restricting vehicle speeds on unpaved roads to 15 mph to control fugitive dust. 4. Trucks hauling dust, sand, gravel, or soil are to be covered or should maintain at least two feet of freeboard in accordance with Section 23114 of the California Vehicle Code. 5. During site grading, underground, and building activity construction, the contractor shall adhere to SCAQMD Rule 431.2 (diesel fuel with sulfur content of 15 ppm by weight or less). 6. During construction, off-road construction equipment shall be maintained in good condition and in proper tune as per manufacturers' specifications and restrict diesel equipment idling to no more than five minutes. 7. Limit application of paint to 50 gallons per day and use of Zero-VaC paints (assumes no more than 150 gram/liter of VaC). Planning staff will verify compliance with the above mitigation measures as part of the grading plan and building plan review process Prior to issuance of a grading permit and building permits Planning Department and Public Works Department Biological Resources 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, or have a substantial adverse effect on any riparian habitat or other sensitive natural community C:\WI N DOWSlapsdoclnettemp\4828\$ASQpdf857678. doc 2 Mitigation Measure: Specific Process: Mitigation Milestone: Responsible Monitoring Party: General Impact: identified in local or regional plans, policies, regulations, or by the California Department of Fish and Game or US Fish and Wildlife Service. 8. A pre-construction burrowing owl survey is required 30 days prior to commencement of construction. If any burrowing owl is found on site, the CDFG shall be consulted, and a passive relocation effort shall be undertaken outside of the nesting season. No disturbance of active nests shall occur. 9. A qualified biologist shall determine if any active raptor nests occur within the limits of disturbance prior to commencement of grubbing, clearing, or grading activities. 10. No brushing, clearing, or grading shall occur within 500 feet of occupied tree-nesting raptor habitat during the raptor breeding season (typically December to July). 11. In order to ensure MBTA compliance, clearing of native vegetation shall occur outside the breeding season of most avian species (February 1 through September 15) unless a pre- construction nesting bird survey determines that no nesting birds are present. The City of Temecula shall approve activities after concurrence is received from the wildlife agencies. 12. Lighting within the proposed project adjacent to preserved habitat shall be of the lowest illumination allowed for human safety and selectively placed, shielded, and directed away from preserved habitat. 13. Impacts to upland habitats and associated species shall be addressed through participation in the MSHCP and payment of the MSHCP Local Development Mitigation fees. The project is located within the Riverside County Stephens' kangaroo rat HCP Fee Assessment Area fee area. Planning staff will verify compliance with the above mitigation measures as part of the grading plan check review process Prior to issuance of a grading permit and building permits Planning Department and Public Works Department Biological e/sources 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, filling, hydrological interruption, or other means. C:\WI N DOWSlapsdoclnettemp\4828\$ASQpdf857678. doc 3 Mitigation Measure: Specific Process: Mitigation Milestone: Responsible Monitoring Party: General Impact: Mitigation Measures: 14. Both federal Clean Water sections 404 and 401 permits and a 1602 Streambed Alteration Agreement are required. Copies of all required permits shall be provided to the City prior to the start of construction and comply fully with all of the terms and conditions of those permits and agreement. 15. Impacts to jurisdictional areas shall be mitigated at least a 1:1 ratio through off-site creation or purchase of wetland credits within an approved wetland mitigation bank. Planning staff shall verify compliance with the above mitigation measures as part of the grading plan check review process Prior to issuance of a grading permit and building permits Planning Department and Public Works Department Cultural Resources Cause a substantial adverse change in the significance of a historical or archaeological resource pursuant to Section 15064.5, and disturb any human remains, including those interred outside of formal cemeteries. 16. Prior to the issuance of a grading permit, the project proponent shall prepare an assessment of the archaeological and cultural resources on the 84 acre project site. The assessment shall be performed by a qualified archaeologist in conjunction with the Pechanga Band of Luiseiio Indians in order to determine whether there are cultural resources on the property and evaluate the significance of any such resources. Any such testing shall involve the Pechanga Tribe, and all tests to determine impacts should be completed prior to the issuance of grading permits. .1--7. ~::3r te the issllanGe ~~ :: ;jraein!j FJ~:~:~, ~~:> FJreject FJreFJen~~~ ~~::~~ ~~ ~~::~~*-~~:~~~::::~ ::>sellrGeS testin!j en the sitz in lh:: areas whizh hcr:e seen eesi!jnalee sy the Peehan!ja +ffiJz as lil;::ly te ezntaJ,r. zullura~ r3SelliGZs. ~::3r te the lestin!j, the FJrejeGt FJreFJen~~~ ~~::~~ ~:>et with reFJres~~~::~:':es ef the PeGhang.:: :::=:> ane the City te eetermine the sFJeGifiG aeeitienal af~::~ ~~::~ ~~::~~ se testee. ReFJres~~~::~:':es ef the PeGhan€j:: Tr~l::s shall se FJresent ellrin!j the testin!j ane the FJreject FJreFJen~-~ ~h::" meet ane Genfer in !jeeE! ~:::~~ ','lith sllGh Trisal reFJresenlatives with resFJeet te eemmznts lh::y may have en the testinB' In lh:: event _-'''''''__,,1 -""'-">.ti-- - -- - ----yo. -- - -- II -< cttftttt1.;..._.. ...._~.;... ...~..:...:. c.-f:--Ae€":'-':'-':'':''.J c....:. c.. r..:.":'u jf" Gllltllral reSellrGeS eisGeveree the testin!j, the Directer ef Plannin!j shall s- ::~:~~3rizee, felle'l'lin:;; :: ~::SGl~:'~ LJ:>arin!j, te imFJese sllGh new Geneiliens er meeify ~:::~~:~::J Geneitie~~ ::~ ~"3G~:::::Y--ro miti!jate any aeeitienal ~~:~~~::::~ ::>sellrGeS imFJacts whie~ ~::~'-be- C:\WI N DOWSlapsdoclnettemp\4828\$ASQpdf857678. doc 4 iaentifiea. (Deleted at the September 5, 2007 Planning Commission) 18. Prior to the issuance of grading permits, the project proponent shall enter into a Treatment Agreement with the Pechanga Band of Luiseiio Indians. This agreement will address the treatment and disposition of cultural resources and human remains that may be uncovered during construction as well as provisions for tribal monitors. 19. Tribal monitors from the Pechanga Band of Luiseiio Indians shall be allowed to monitor all grading, excavation and ground-breaking activities, including further surveys, to be compensated by the project proponent. The Pechanga Tribal monitors shall have the authority to temporarily stop and redirect grading activities to evaluate the significance of any archaeological resources discovered on the property, in conjunction with the archeologist and the Lead Agency. 20. A qualified archaeologist monitor shall be present during all earthmoving activities. The monitor shall be empowered to temporarily halt or redirect construction work in the vicinity of the find until it can be evaluated by the project archaeologist in conjunction with the Pechanga Tribe. In the event of a new find, further testing, excavation, and/or reporting may be required. 21. 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. 22. If human remains are encountered, all activity shall cease and the County Coroner must be notified immediately. State Health and Safety Code Section 7050.5 state that no further disturbance shall occur until the County Coroner has made a determination of the origin and until treatment pursuant to Public Resources Code Section 5097.98 has been decided. The Coroner shall determine if the remains are prehistoric, and shall notify the State Native American Heritage Commission (NAHC) if applicable. Further actions shall be determined ey the aesires ef the Most Lil(oly Dosconaont (MLD). pursuant to California Public Resources Code Section 5097.98 (Amended at the September 5, 2007 Planning Commission) 23. The landowner shall agree to relinquish ownership of all cultural resources, including all Luiseiio sacred items, burial goods and all archeological artifacts that are found on the project site to the Pechanga Band of Luiseiio Indians for proper treatment and disposition. C:\WI N DOWSlapsdoclnettemp\4828\$ASQpdf857678. doc 5 Specific Process: Mitigation Milestone: Responsible Monitoring Party: General Impact: Mitigation Measures: 24. All E:aGree E:iteE: wit~;~ ~~':l I3rejeGt area are te ee aveieee ane I3reE:ervee. (Deleted at the September 5, 2007 Planning Commission) 25. The %-acre of cultural site CA-RIV 237 located in the northeast corner of Planning Application 06-0370 shall be preserved in Open Space and recorded with the County Recorder of Riverside County as a conservation easement for preservation purposed in perpetuity. The %-acre of CA-RIV 237 shall not be subjeGt to development, archeological testing or ground-disturbing aGtivities. The Planning Department shall be notified in the event any resources are discovered. Place the above Condition of Approval on this projeGt to require cultural resource monitoring during all earthmoving aGtivities. On-going during all earthmoving phases of the projeGt Planning Department and Public Works Department Cultural Resources Cause a substantive adverse change in the significance of paleontological resources. 26. A qualified paleontological monitor shall provide cultural resources sensitivity training (a 15 min. presentation) for all projeGt personnel. 27. All impaGts to the sandstone and fanglomerate members of the Pauba Formation shall be monitored full time at the beginning of grading. A trained paleontological monitor shall be present during ground disturbing aGtivities within the projeGt area determined likely to contain paleontological resources. Monitoring will be adjusted to spot checking if initial monitoring shows negative results. 28. Upon encountering any significant fossils, salvage of all fossils in the area shall be conduGted with additional field staff and in accordance with modern paleontological techniques. 29. Any significant fossils recovered shall be prepared to a reasonable point of identification. Excess sediment or matrix will be removed from the specimens to reduce the bulk and cost of storage. Itemized catalogs of all material collected and identified shall be provided to the museum repository along with the specimens. C:\WI N DOWSlapsdoclnettemp\4828\$ASQpdf857678. doc 6 Specific Process: Mitigation Milestone: Responsible Monitoring Party: General Impact: Mitigation Measure: Specific Process: Mitigation Milestone: Responsible Monitoring Party: General Impact: 30. Prior to the issuance of a building permit, a report documenting the results of the monitoring and any salvage activities and the significance of the fossils shall be prepared. 31. Any significant fossils recovered, along with the itemized inventory of the specimens, shall be deposited in a museum repository for permanent curation and storage. The Planning Department shall be notified in the event any resources are discovered. Place the above Condition of Approval on this project to require cultural resource monitoring during all earthmoving activities. On-going during all earthmoving phases of the project Planning Department and Public Works Department Geology and Soils Expose people or structures to potential substantial adverse effects, including the risk of loss, injury, or death involving strong seismic ground shaking. 32. Seismically resistant structural design in accordance with local building ordinances shall be followed during the design of all structures. 33. Subsequent geotechnical reviews shall be conducted prior to the development of Parcels 1, 2, and 3 created by this project. Building and Safety staff will verify compliance with the above mitigation measure as part of the grading and building plan check review processes. Prior to issuance of a grading permit and building permits Planning Department, Building and Safety Department, and Public Works Department Geology and Soils Result in substantial soil erosion or the loss of topsoil, be located on a geologic unit or soil that is unstable, or that would become unstable as a result of the project, and potentially result in on- or off-site landslide, lateral spreading, subsidence, liquefaction or collapse, or be located on expansive soil, as defined in Table 18- C:\WI N DOWSlapsdoclnettemp\4828\$ASQpdf857678. doc 7 Mitigation Measure: Specific Process: Mitigation Milestone: Responsible Monitoring Party: General Impact: Mitigation Measure: Specific Process: 1-B of the Uniform Building Code (1994), creating substantial risks to life or property. 34. Prior to the issuance of grading and building permits, the applicant shall submit to the Public Works Department an erosion control plan prepared in accordance with the requirements of the Temecula Municipal Code, Section 18.15, Erosion and Sediment Control. 35. Prior to the issuance of occupancy permits, landscape plans shall be prepared for all slopes created by the grading and fill of these sites consistent with "Slope Planting Guidelines" and the Development Code, and shall provide erosion control on undeveloped portions of the site. 36. Prior to the issuance of grading and building permits, the recommendations contained in soils report(s), geotechnical report, and slope stability report shall be implemented. 37. Plants selected for slope landscaping shall be light-weight, deep rooted type vegetations that require little water and are capable of surviving with little irrigation. Planning, Public Works, and Building and Safety staff will verify compliance with the above mitigation measure as part of the grading and building plan check review processes. Prior to issuance of a grading permit and building permits Planning Department, Building and Safety Department, and Public Works Department Noise 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 agencies. 38. Prior to issuance of a building permit, the project applicant shall submit an acoustical analysis prepared by a certified acoustical engineer to ensure that noise levels will not exceed an Ldn of 75 dBA exterior or an Ldn of 55 dBA interior at the receptor. The analysis shall include requirements such as special design measures to protect surrounding noise sensitive uses from ultimate projected operational noise levels. Planning staff will verify compliance with the above mitigation measures as part of the building plan check review process C:\WI N DOWSlapsdoclnettemp\4828\$ASQpdf857678. doc 8 Mitigation Milestone: Responsible Monitoring Party: Prior to issuance of building permits Planning Department C:\WI N DOWSlapsdoclnettemp\4828\$ASQpdf857678. doc 9 EXHIBIT A CITY OF TEMECULA FINAL CONDITIONS OF APPROVAL Planning Application No.: PA06-0370 Project Description: A Tentative Tract Map (TTM 35181) to subdivide 84 gross acres into five parcels, four developable lots and one easement parcel for slope and drainage purposes. The project site is located at the northwest corner of Dendy Parkway and Winchester Road Assessor's Parcel No.: 909-370-018 and 909-370-032 MSHCP Category: Per Development Agreement DIF Category: Per Development Agreement TUMF Category: Per Development Agreement Approval Date: September 6, 2007 Per Development Agreement (Amended at the September 5, 2007 Planning Commission) Expiration Date: September S, 29-1-0- Per Development Agreement (Amended at the September 5, 2007 Planning Commission) WITHIN 48 HOURS OF THE APPROVAL OF THIS PROJECT Planning Department 1. The applicant/developer shall deliver to the Planning Department a cashier's check or money order made payable to the County Clerk in the amount of One Thousand Eight Hundred Sixty-Four Dollars ($1,864.00) which includes the One Thousand Eight Hundred Dollar ($1 ,800.00) fee, required by Fish and Game Code Section 711.4(d)(3) plus the Sixty- Four Dollar ($64.00) County administrative fee, to enable the City to file the Notice of Determination for the Mitigated Negative Declaration required under Public Resources Code Section 21152 and California Code of Regulations Section 15075. If within said 48-hour period the applicant/developer has not delivered to the Planning Department the check as required above, the approval for the project granted shall be void by reason of failure of condition [Fish and Game Code Section 711.4(c)]. C\ WI N DOWS\apsdoc\nettemp\5656\$ASQpdf857679 .doc GENERAL REQUIREMENTS C\ WI N DOWS\apsdoc\nettemp\5656\$ASQpdf857679 .doc 2 Planning Department 2. The applicant shall sign both copies of the final Conditions of Approval that will be provided by the Planning Department staff, and return one signed set to the Planning Department for their files. 3. The tentative subdivision shall comply with the State of California Subdivision Map Act and to all the requirements of Ordinance No. 460, unless modified by the conditions listed below. A time extension may be approved in accordance with the State Map Act and City Ordinance, upon written request, if made 60 days prior to the expiration date. 4. 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. 5. The approval granted by this Resolution shall become effective upon the Effective Date of the Development Agreement, as the term Effective Date is defined in the Development Agreement adopted concurrently with this Resolution. 6. If Subdivision phasing is proposed, a .ahasina alan shall be submitted to and approved by the Planning Director. 7. The project and all subsequent projects within this site shall be subject to the Garrett/PHS Development Agreement (PA07-0220). 8. All lots created by TTM35181 shall be developed as identified in the Development Agreement (PA07-0220). 9. The project and all subsequent projects within this site shall comply with all mitigation measures contained in the approved Mitigation Monitoring Program. 10. A Specific Plan consistent with Development Agreement (PA07-0220) shall be submitted prior to the approval of any development plans for Lots 1, 2, or 3 created by TTM 35181. Public Works Department 11. It is understood that the Developer correctly shows on the tentative map all existing and proposed easements, traveled ways, improvement constraints and drainage courses, and their omission may require the project to be resubmitted for further review and revision. C\ WI N DOWS\apsdoc\nettemp\5656\$ASQpdf857679 .doc 3 12. A Grading Permit for either rough or precise grading shall be obtained from the Department of Public Works prior to commencement of any construction outside of the City-maintained road right-of-way. 13. An Encroachment Permit shall be obtained from the Department of Public Works prior to commencement of any construction within an existing or proposed City right-of-way. 14. All improvement plans, grading plans, landscape and irrigation 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. 15. The provisions for the design, improvement, lot configuration, public facility financing and the following conditions of approval are predicated on the approval and full execution of a Development Agreement between Temecula Properties, LLC and the City on or about September 25, 2007. Fire Prevention Bureau 16. 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 submittal. 17. 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 4,000 GPM at 20 PSI residual operating pressure for a 4 hour duration. The Fire Flow as given above has taken into account all information as provided (CFC 903.2, Appendix III-A) 18. 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 off-site (6" x 4" x 2-2 1/2" outlets) on a looped system shall be located on fire access roads and adjacent to public streets. Hydrants shall be spaced at 350 feet apart, at each intersection and shall be located no more than 210 feet from any point on the street or Fire Department access road(s) frontage to an 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). 19. 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). Community Service Department 20. The Applicant shall comply with the Public Art Ordinance. 21. 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. C\ WI N DOWS\apsdoc\nettemp\5656\$ASQpdf857679 .doc 4 PRIOR TO RECORDATION OF THE FINAL MAP C\ WI N DOWS\apsdoc\nettemp\5656\$ASQpdf857679 .doc 5 Planning Department 22. The following shall be submitted to and approved by the Planning Division: a. A copy of the Final Map. b. A copy of the Environmental Constraint Sheet (ECS) with the following notes: i. This property is located within thirty (30) miles of Mount Palomar Observatory. All proposed outdoor lighting systems shall comply with the California Institute of Technology, Palomar Observatory recommendations, Ordinance No. 655. ii. A Mitigated Negative Declaration was prepared for this project and is on file at the City of Temecula Planning Department. iii. This project is within the Alquist-Priolo Special Studies Zone. iv. This project contains sensitive cultural resources. 23. The %-acre of cultural site CA-RIV 237 located in the northeast corner of Planning Application 06-0370 shall be preserved in Open Space and recorded with the County Recorder of Riverside County as a conservation easement for preservation purposed in perpetuity. The %-acre of CA-RIV 237 shall not be subject to development, archeological testing or ground-disturbing activities. 24. The applicant shall comply with the provisions of the Development Agreement (PA07 -0220) prior to Final Map recordation. Public Works Department 25. As deemed necessary by the Department of Public Works, the Developer shall receive written clearance from the following agencies: a. San Diego Regional Water Quality Control Board b. Rancho California Water District c. Riverside County Flood Control and Water Conservation District d. City of Temecula Fire Prevention Bureau e. Planning Department f. Department of Public Works g. Riverside County Health Department h. Time Warner i. Community Services District j. Verizon k. Southern California Edison Company I. Southern California Gas Company m. Fish and Game n. Army Corps of Engineers C\ WI N DOWS\apsdoc\nettemp\5656\$ASQpdf857679 .doc 6 26. The Developer shall design and guarantee construction of the following public improvements to City of Temecula General Plan standards unless otherwise noted. Plans shall be reviewed and approved by the Department of Public Works: a. Winchester Road (Major Arterial Standards - 100' R/W) between Dendy Parkway and the southern project boundary plus transition to include dedication of half-width street right-of-way, installation of half-width street improvements, paving, curb and gutter, sidewalk, painted median, street lights, drainage facilities, signing and striping and utilities (including but not limited to water and sewer). b. Dendy Parkway (Major Arterial Standards - 100' R/W) between Winchester Road and the eastern project boundary plus transition to include dedication of half-width street right-of-way, installation of half-width street improvements, paving, curb and gutter, sidewalk, painted median, street lights, drainage facilities, signing and striping and utilities (including but not limited to water and sewer). c. Remington Avenue (Industrial Collector Highway Standards - 78' R/W) to include dedication of full width street right-of-way, installation of full width street improvements, curb and gutter, sidewalk, painted median, street lights, drainage facilities, signing and striping, utilities (including but not limited to water and sewer). d. Remington Avenue and Winchester Road intersection to include a stop control on the eastbound leg of Remington Avenue for an all-way stop controlled intersection and a striped 200-foot northbound left turn pocket. In addition, secure with a cash deposit to include a year 2009 traffic analysis to determine traffic signal warrants and a fair share contribution for the design and installation of a traffic signal. e. Cherry Street (Major Arterial- 100' R/W) i. Dedication of half-width street right-of-way. f. Western Bypass Corridor (Major Arterial - 100' R/W) i. Dedication of full-width street right-of-way plus an easement for slope construction, maintenance and drainage purposes. g. All street improvement design shall provide adequate right-of-way and pavement transitions per Caltrans standards for transition to existing street sections. 27. Unless otherwise approved the following minimum criteria shall be observed in the design of the street improvement plans: a. Street centerline grades shall be 0.5% minimum over P.C.C. and 1.00% minimum over A.C. paving. b. Driveways shall conform to the applicable City Standard No. 207A. c. Street lights shall be installed along the public streets shall be designed in accordance with City Standard No. 800, 801, 802 and 803. d. Concrete sidewalks shall be constructed in accordance with City Standard Nos. 400 and 401. e. Design of street improvements shall extend a minimum of 300 feet beyond the project boundaries to ensure adequate continuity of design with adjoining properties. f. Minimum centerline radii shall be in accordance with City Standard No. 113. g. All street and driveway centerline intersections shall be at 90 degrees. C\ WI N DOWS\apsdoc\nettemp\5656\$ASQpdf857679 .doc 7 h. All knuckles shall be constructed in accordance with City Standard No. 602. i. All cul-de-sacs shall be constructed in accordance in City Standard No. 600. j. Landscaping shall be limited in the corner cut-off area of all intersections and adjacent to driveways to provide for minimum sight distance and visibility. k. All utility systems including gas, electric, telephone, water, sewer, and cable TV shall be provided underground. Easements shall be provided as required where adequate right-of-way does not exist for installation of the facilities. All utilities shall be designed and constructed in accordance with City Codes and the utility provider. I. All utilities, except electrical lines rated 34kv or greater, shall be installed underground. 28. A construction phase Traffic Control Plan shall be designed by a registered Civil Engineer and reviewed by 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. 29. Relinquish and waive right of access to and from Winchester Road on the Final Map. Specific access openings will be determined through the Development Plan process as stated in the Development Agreement. 30. Relinquish and waive right of access to and from Dendy Parkway on the Final Map. Specific access openings will be determined through the Development Plan process as stated in the Development Agreement. 31. Relinquish and waive right of access to and from Remington Avenue on the Final Map. Specific access openings will be determined through the Development Plan process as stated in the Development Agreement. 32. Relinquish and waive right of access to and from Cherry Street on the Final Map. Specific access openings will be determined through the Development Plan process as stated in the Development Agreement. 33. Relinquish and waive right of access to and from the Western Bypass Corridor on the Final Map. Specific access openings will be determined through the Development Plan process as stated in the Development Agreement. 34. Corner property line cut off for vehicular sight distance and installation of pedestrian facilities shall be provided at all street intersections in accordance with Riverside County Standard No. 805. 35. All easements and/or right-of-way dedications shall be offered for dedication to the public or other appropriate agency and shall continue in force until the City accepts or abandons such offers. All dedications shall be free from all encumbrances as approved by the Department of Public Works. 36. Pursuant to Section 66493 of the Subdivision Map Act, any subdivision which is part of an existing Assessment District must comply with the requirements of said section. Prior to City Council approval of the Final Map, the Developer shall make an application for reapportionment of any assessments with appropriate regulatory agency. 37. Any delinquent property taxes shall be paid. C\ WI N DOWS\apsdoc\nettemp\5656\$ASQpdf857679 .doc 8 38. An Environmental Constraints Sheet (ECS) shall be prepared in conjunction with the Final Map to delineate identified environmental concerns and shall be recorded with the map. 39. The Developer shall comply with all constraints which may be shown upon an Environmental Constraint Sheet recorded with any underlying maps related to the subject property. 40. The Developer shall make a good faith effort to acquire the required off-site property interests, and if he or she should fail to do so, the Developer shall, prior to submittal of the Final Map for recordation, enter into an agreement to complete the improvements pursuant to the Subdivision Map Act, Section 66462 and Section 66462.5. Such agreement shall provide for payment by the Developer of all costs incurred by the City to acquire the off-site property interests required in connection with the subdivision. Security of a portion of these costs shall be in the form of a cash deposit in the amount given in an appraisal report obtained by the Developer, at the Developer's cost. The appraiser shall have been approved by the City prior to commencement of the appraisal. 41. The Developer shall notify the City's cable TV Franchises of the Intent to Develop. Conduit shall be installed to cable TV standards at time of street improvements. 42. Private drainage easements for cross-lot drainage shall be required and shall be delineated and noted on the final map. 43. Easements, when required for roadway slopes, landscape easements, drainage facilities, utilities, etc., shall be shown on the final map if they are located within the land division boundary. All offers of dedication and conveyances shall be submitted for review and recorded as directed by the Department of Public Works. On-site drainage facilities located outside of road right-of-way shall be contained within drainage easements and shown on the final map. A note shall be added to the final map stating "drainage easements shall be kept free of buildings and obstructions. " C\ WI N DOWS\apsdoc\nettemp\5656\$ASQpdf857679 .doc 9 PRIOR TO ISSUANCE OF GRADING PERMITS C\ WI N DOWS\apsdoc\nettemp\5656\$ASQpdf857679 .doc 10 Planning Department 44. A copy of the Rough Grading plans shall be submitted and approved by the Planning Department. 45. The recommendations contained in soils report(s), geotechnical report, and slope stability report shall be implemented. 46. Both Federal Clean Water Sections 404 and 401 permits and a 1602 Streambed Alteration Agreement are required. Copies of all required permits shall be provided to the City priorto the start of construction and comply fully with all of the terms and conditions of those permits and agreement. 47. Impacts to jurisdictional areas will be mitigated at least a 1:1 ratio through off-site creation or purchase of wetland credits within an approved wetland mitigation bank. 48. Impacts to upland habitats and associated species will be addressed through participation in the MSHCP and payment of the MSHCP Local Development Mitigation fees. The project is located within the Riverside County Stephens' kangaroo rat HCP Fee Assessment Area fee area. 49. A pre-construction burrowing owl survey is required 30 days prior to commencement of construction. If any burrowing owl is found on site, the CDFG shall be consulted, and a passive relocation effort shall be undertaken outside of the nesting season. No disturbance of active nests will occur. 50. A qualified biologist shall determine if any active raptor nests occur within the limits of disturbance prior to commencement of grubbing, clearing, or grading activities. 51. No brushing, clearing, or grading shall occur within 500 feet of occupied tree-nesting raptor habitat during the raptor breeding season (typically December to July). 52. In order to ensure MBTA compliance, clearing of native vegetation shall occur outside the breeding season of most avian species (February 1 through September 15) unless a pre- construction nesting bird survey determines that no nesting birds are present. The City of Temecula would need to approve activities after concurrence is received from the wildlife agencies. 53. 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." C\ WI N DOWS\apsdoc\nettemp\5656\$ASQpdf857679 .doc 11 54. The project proponent shall enter into a Treatment Agreement with the Pechanga Band of Luiseiio Indians. This agreement will address the treatment and disposition of cultural resources and human remains that may be uncovered during construction as well as provisions for tribal monitors. 55. Tribal monitors from the Pechanga Band of Luiseiio Indians shall be allowed to monitor all grading, excavation and ground-breaking activities, including further surveys, to be compensated by the project proponent. The Pechanga Tribal monitors shall have the authority to temporarily stop and redirect grading activities to evaluate the significance of any archaeological resources discovered on the property, in conjunction with the archeologist and the Lead Agency. 56. A qualified archaeologist monitor shall be present during all earthmoving activities. The monitor shall be empowered to temporarily halt or redirect construction work in the vicinity of the find until it can be evaluated by the project archaeologist in conjunction with the Pechanga Tribe. In the event of a new find, further testing, excavation, and/or reporting may be required. 57. 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. 58. If human remains are encountered, all activity shall cease and the County Coroner must be notified immediately. State Health and Safety Code Section 7050.5 state that no further disturbance shall occur until the County Coroner has made a determination of the origin and until treatment pursuant to Public Resources Code Section 5097.98 has been decided. The Coroner shall determine if the remains are prehistoric, and shall notify the State Native American Heritage Commission (NAHC) if applicable. Further actions shall be determined pursuant to California Public Resources Code Section 5097.98. 59. The landowner shall agree to relinquish ownership of all cultural resources, including all Luiseiio sacred items, burial goods and all archeological artifacts that are found on the project site to the Pechanga Band of Luiseiio Indians for proper treatment and disposition. eC'. .'\11 E:asrea E:iteE: 'I\':~~:~ ~~:> I3rejest area are te ee aveiaea ana I3reE:ervea. (Deleted at the September 5,2007 Planning Commission) 61. Cultural Resources Sensitivity Training (a 15-minute presentation) should be required for all project personnel. 62. All impacts to the sandstone and fanglomerate members of the Pauba Formation should be monitored full time at the beginning of grading. A trained paleontological monitor shall be present during ground disturbing activities within the project area determined likely to contain paleontological resources. Monitoring will be adjusted to spot checking if initial monitoring shows negative results. 63. Upon encountering any significant fossils, salvage of all fossils in the area will be conducted with additional field staff and in accordance with modern paleontological techniques. 64. Any significant fossils recovered shall be prepared to a reasonable point of identification. Excess sediment or matrix will be removed from the specimens to reduce the bulk and cost C\ WI N DOWS\apsdoc\nettemp\5656\$ASQpdf857679 .doc 12 of storage. Itemized catalogs of all material collected and identified shall be provided to the museum repository along with the specimens. 65. A report documenting the results of the monitoring and any salvage activities and the significance of the fossils shall be prepared. 66. Any significant fossils recovered, along with the itemized inventory of the specimens, shall be deposited in a museum repository for permanent curation and storage. Public Works Department 67. As deemed necessary by 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 e. Riverside County Health Department f. Community Services District g. General Telephone h. Southern California Edison Company i. Southern California Gas Company 68. A Grading Plan shall be prepared by a registered Civil Engineer in accordance with City of Temecula standards and approved by the Department of Public Works prior to commencement of any grading. The plan shall incorporate adequate erosion control measures to protect the site and adjoining properties from damage due to erosion. 69. A Soils Report shall be prepared by a registered Civil or Soils Engineer and submitted to 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, cut and fill slopes and preliminary pavement sections. C\ WI N DOWS\apsdoc\nettemp\5656\$ASQpdf857679 .doc 13 70. A Geotechnical Report shall be prepared by a registered engineer or engineering geologist and submitted to the Department of Public Works with the initial grading plan check. The report shall address special study zones and identify any geotechnical hazards for the site including location of faults, slope stability and potential for liquefaction. The report shall include recommendations to mitigate the impact of ground shaking and liquefaction. a. Based on geologic relationships and observations, the site lacks evidence to support the existence/presence of Holocene faulting (i.e. broken soil horizon or shear planes). The building site area is not traversed by an active fault that would affect the stability of the cut slope proposed or the building structure. A certified engineering geologist shall perform regular field reconnaissance during site earthwork construction. This field mapping is intended to further evaluate site conditions and limit the possibility that adverse conditions will be exposed that could affect site stability. 71. A Drainage Study shall be prepared by a registered Civil Engineer and submitted to the Department of Public Works with the initial grading plan check. The study shall identify storm water runoff quantities expected from the development of this site and upstream of the site. It shall identify all existing or proposed off-site or on-site, public or private, drainage facilities intended to discharge this runoff. Runoff shall be conveyed to an adequate outfall capable of receiving the storm water runoff without damage to public or private property. The study shall include a capacity analysis verifying the adequacy of all facilities. Any upgrading or upsizing of drainage facilities necessary to convey the storm water runoff shall be provided as part of development of this project. The basis for analysis and design shall be a storm with a recurrence interval of one hundred years. 72. Construction-phase pollution prevention controls shall be consistent with the City's Grading, Erosion and Sediment Control Ordinance and associated technical manual, and the City's standard notes for Erosion and Sediment Control. 73. 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. 74. The Developer shall post security and enter into an agreement guaranteeing the grading and erosion control improvements in conformance with applicable City Standards and subject to approval by the Department of Public Works. 75. 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. Provide receipt of paid Area Drainage Plan fees from the County. 76. 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. C\ WI N DOWS\apsdoc\nettemp\5656\$ASQpdf857679 .doc 14 77. The Developer shall obtain letters of approval or easements for any off-site work performed on adjoining properties. The letters or easements shall be in a format as directed by the Department of Public Works. Fire Prevention Bureau 78. 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 required fire flow shall be provided. For this project on-site fire hydrants are required (CFC 903.2). 79. Maximum cul-de-sac length shall not exceed 1320 feet. Minimum turning radius on any cul- de-sac shall be forty-five (45) feet (CFC 902.2.2.2.3 and Subdivision Ord 16.03.020). 80. 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 lbs. GVW (CFC 8704.2 and 902.2.2.2). 81. 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 (13) feet six (6) inches (CFC 902.2.2.1). 82. The gradient for a fire apparatus access roads shall not exceed fifteen (15) percent. (CFC 902.2.2.6 Ord. 99-14) 83. Prior to building construction, dead end roadways 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). 84. Prior to building construction, this development shall have two (2) points of access, via all- weather surface roads, as approved by the Fire Prevention Bureau (CFC 902.2.1). C\ WI N DOWS\apsdoc\nettemp\5656\$ASQpdf857679 .doc 15 PRIOR TO ISSUANCE OF BUILDING PERMITS C\ WI N DOWS\apsdoc\nettemp\5656\$ASQpdf857679 .doc 16 Planning Department 85. The applicant shall file and receive approval of a Development Plan for all future development within the subject parcels. 86. Landscape plans shall be prepared for all slopes created by the grading and fill of the site consistent with "Slope Planting Guidelines" and the Development Code, and shall provide erosion control on undeveloped portions of the site. 87. Landscape plans for Parcel 4 shall include the off-site slopes created by the development of Parcel 4 (including but not limited to the slopes proposed within Parcel 2 and the detention basin proposed within Parcel 1). All landscaping shall be installed and maintained in satisfactory condition by the property owner. Public Works Department 88. Final Map 35181 shall be approved and recorded. 89. A Precise Grading Plan shall be submitted to the Department of Public Works for review and approval. The building pad shall be certified by a registered Civil Engineer for location and elevation, and the Soils Engineer shall issue a Final Soils Report addressing compaction and site conditions. 90. Grading of the subject property shall be in accordance with the California Building Code, the approved grading plan, the conditions of the grading permit, City Grading Standards and accepted grading construction practices. The final grading plan shall be in substantial conformance with the approved rough grading plan. 91. A paved emergency vehicle access shall be installed to the satisfaction of the City Engineer and the Fire Marshall. 92. 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. 93. 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. Fire Prevention Bureau 94. The developer shall furnish three copies of the water system plans directly 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. Hydraulic calculations are required for fire flow with the submittal. Once the plans have been approved by the fire department the plans get picked up from the fire department, mylars are made and they are then signed by the local water company, the mylars shall be presented to the Fire Prevention Bureau for final signatures. After all the signatures are obtained a bond copy shall be submitted back to the fire department. Once the fire department received this final copy the permit job card will be released. The permit job card indicates all the inspections that are required by the fire department. The required water system including fire hydrants shall be C\ WI N DOWS\apsdoc\nettemp\5656\$ASQpdf857679 .doc 17 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 241-4.1). C\ WI N DOWS\apsdoc\nettemp\5656\$ASQpdf857679 .doc 18 95. 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 lbs. GVW with a minimum AC thickness of .25 feet (CFC sec 902). 96. Fire sprinkler plans shall be submitted to the Fire Prevention Bureau for approval. Three sets of sprinkler plans must be submitted by the installing contractor to the Fire Prevention Bureau. 97. Fire alarm plans shall be submitted to the Fire Prevention Bureau for approval. Three sets of alarm plans must be submitted by the installing contractor to the Fire Prevention Bureau. 98. Fuel modification plans shall be submitted to the Fire Prevention Bureau for review and approval for all open space areas adjacent to the wildland-vegetation interface (CFC Appendix II-A) 99. A full technical report may be required to be submitted and to the Fire Prevention Bureau. This report shall address, but not be limited to, all fire and life safety measures per 1998 CFC, 1998 CBC, NFPA - 13, 24, 72 and 231-C. Community Service Department 100. The developer shall complete the TCSD application process, submit an approved Edison Streetlight Plan and pay the appropriate energy fees related to the transfer of street lighting into the TCSD maintenance program. 101. The developer shall make arrangements with the franchised hauler to dispose of the construction debris. C\ WI N DOWS\apsdoc\nettemp\5656\$ASQpdf857679 .doc 19 PRIOR TO ISSUANCE OF OCCUPANCY PERMITS C\ WI N DOWS\apsdoc\nettemp\5656\$ASQpdf857679 .doc 20 Planning Department 102. All of the foregoing conditions shall be complied with prior to occupancy or any use allowed by this permit. Fire Prevention Bureau 103. "Blue Reflective Markers" shall be installed to identify fire hydrant locations (CFC 901.4.3). 104. 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 and industrial buildings shall have a minimum twelve (12) inches numbers with 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). 105. Based on square footage and type of construction, occupancy or use, the developer shall install a fire sprinkler system (CFC Article 10, CBC Chapter 9). 106. 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 prior to installation (CFC Article 10). 107. 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 (CFC 902.4). 108. 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). 109. 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. 110. Buildings housing high-piled combustible stock shall comply with the provisions of Uniform Fire Code Article 81 and all applicable National Fire Protection Association standards. The storage of high-piled combustible stock may require structural design considerations or modifications to the building. Fire protection and life safety features may include some or all of the following: an automatic fire sprinkler system(s) designed for a specific commodity class and storage arrangement, hose stations, alarm systems, smoke vents, draft curtains, Fire Department access doors and Fire department access roads (CFC Article 81). C\ WI N DOWS\apsdoc\nettemp\5656\$ASQpdf857679 .doc 21 111. Prior to the building final, speculative buildings capable of housing high-piled combustible stock, shall be designed with the following fire protection and life safety features: an automatic fire sprinkler system(s) designed for a specific commodity class and storage arrangement, hose stations, alarm systems, smoke vents, draft curtains, Fire Department access doors and Fire department access roads. Buildings housing high-piled combustible stock shall comply with the provisions California Fire Code Article 81 and all applicable National Fire Protection Association standards (CFC Article 81). 112. 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). 113. A simple plot plan and a simple floor plan, each as an electronic file of the DWG format must be submitted to the Fire Prevention Bureau. Alternative file formats may be acceptable, contact fire prevention for approval. 114. 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) 115. If there are changes to underlying maps then prior to map recordation the applicant shall submit to the Fire Prevention Bureau a georectified (pursuant to Riverside County standards) digital version of the map including parcel and street centerline information. The electronic file will be provided in a ESRI Arclnfo/ArcView compatib/eformat and projected in a State Plane NAD 83 (California Zone VI) coordinate system. The Bureau must accept the data as to completeness, accuracy and format prior to satisfaction of this condition. 116. 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). C\ WI N DOWS\apsdoc\nettemp\5656\$ASQpdf857679 .doc 22 OUTSIDE AGENCIES C\ WI N DOWS\apsdoc\nettemp\5656\$ASQpdf857679 .doc 23 117. The applicant shall comply with the recommendations set forth in the Rancho California Water District's transmittal dated December 27, 2006, a copy of which is attached. 118. The applicant shall comply with the recommendations set forth in the Eastern Information Center's transmittal dated December 19, 2006, a copy of which is attached. 119. The applicant shall comply with the recommendations set forth in the Pechanga Cultural Resources comment letter dated December 22, 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 C\ WI N DOWS\apsdoc\nettemp\5656\$ASQpdf857679 .doc 24 EXHIBIT A CITY OF TEMECULA FINAL CONDITIONS OF APPROVAL Planning Application No.: PA06-0369 and PA07-0090 Project Description: A Development Plan application to construct a three story, 608,934 square foot industrial distribution building for office and warehouse use, a 400 square foot pump house on 32 acres (Parcel 4 of TTM 35181), and a Minor Exception to allow for a one percent building height increase from 50' to 50'8", located on the northwest corner of Dendy Parkway and Winchester Road Assessor's Parcel No. 909-370-018; 909-370-032 MSHCP Category: Per Development Agreement DIF Category: Per Development Agreement TUMF Category: Per Development Agreement Approval Date: Sel3temecr 'i', 200-1- Per Development Agreement (Amended at the September 5, 2007 Planning Commission) Expiration Date: Sel3temeer 5, 2009 Per Development Agreement (Amended at the September 5, 2007 Planning Commission) WITHIN 48 HOURS OF THE APPROVAL OF THIS PROJECT Planning Department 1. The applicant/developer shall deliver to the Planning Department a cashier's check or money order made payable to the County Clerk in the amount of One Thousand Eight Hundred and Sixty-Four Dollars ($1,864.00) which includes the One Thousand Eight Hundred Dollar ($1 ,800.00) fee, required by Fish and Game Code Section 711.4(d)(3) plus the Sixty-Four Dollar ($64.00) County administrative fee, to enable the City to file the Notice of Determination for the Mitigated Negative Declaration required under Public Resources Code Section 21152 and California Code of Regulations Section 15075. If within said 48- hour period the applicant/developer has not delivered to the Planning Department the check as required above, the approval for the project granted shall be void by reason of failure of condition [Fish and Game Code Section 711.4(c)]. C\ WI N DOWS\apsdoc\nettemp\4532\$ASQpdf857680 .doc GENERAL REQUIREMENTS C\ WI N DOWS\apsdoc\nettemp\4532\$ASQpdf857680 .doc 2 Planning Department 2. The applicant shall sign both copies of the final Conditions of Approval that will be provided by the Planning Department staff, and return one signed set to the Planning Department for their files. 3. The applicant 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. 4. The permittee shall obtain City approval for any modifications or revisions to the approval of this project. 5. This approval shall be used within two years of the approval date; otherwise, it shall become null and void. By use is meant 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 3 one-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. The Conditions of Approval specified in this resolution, to the extent specific items, materials, equipment, techniques, finishes or similar matters are specified, shall be deemed satisfied by staffs prior approval of the use or utilization of an item, material, equipment, finish or technique that City staff determines to be the substantial equivalent of that required by the Conditions of Approval. Staff may elect to reject the request to substitute, in which case the real party in interest may appeal, after payment of the regular cost of an appeal, the decision to the Planning Commission for its decision. Material Color Concrete Tilt-up Panels ICI 632 Sutton Place ICI 815 Natural White ICI 606 Song Sparrow C\ WI N DOWS\apsdoc\nettemp\4532\$ASQpdf857680 .doc 3 Parapet Glazing ICI 815 Natural White y." Gray 1 O. 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. 11. The applicant shall paint a 3-foot x 3-foot section of the building for Planning Department inspection, prior to commencing painting of the building. 12. 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. 13. Trash enclosures shall be provided to house all trash receptacles utilized on the site. These shall be clearly labeled on site plan. 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 prior to commencement of any construction within an existing or proposed City right-of-way. 16. All improvement plans and grading 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. 17. The project shall include construction-phase pollution prevention controls and permanent post-construction water quality protection measures into the design of the project to prevent non-permitted runoff from discharging offsite or entering any storm drain system or receiving water. 18. 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. 19. The provisions for the design, improvement, lot configuration, public facility financing and the following Conditions of Approval are predicated on the approval and full execution of a Development Agreement between Temecula Properties, LLC and the City on or about September 25, 2007. C\ WI N DOWS\apsdoc\nettemp\4532\$ASQpdf857680 .doc 4 Building and Safety Department 20. The code analysis shall be printed on the plans along with the letter from the Director of Building and Safety, dated September 12, 2006. 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 Temecula has adopted an ordinance to collect fees 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 03-01 and the fee schedule in effect at the time of building permit issuance. 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 ligting 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. Trash enclosures, patio covers, light standards, and any block walls if not on the approved building plans, will require separate approvals and permits. 32. Obtain street addressing for all proposed buildings prior to submittal for plan review. 33. 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, C\ WI N DOWS\apsdoc\nettemp\4532\$ASQpdf857680 .doc 5 specifically Section G (1) of Riverside County Ordinance No. 457.73, for any site within one- quarter mile of an occupied residence. Monday-Friday Saturday 6:30 a.m. - 6:30 p.m. 7:00 a.m. - 6:30 p.m. No work is permitted on Sundays or Government Holidays 34. Restroom fixtures, number and type, to be in accordance with the provisions of the 2001 edition of the California Building Code Appendix 29. 35. Provide electrical plan including load calculations and panel schedule, plumbing schematic and mechanical plan applicable to scope of work for plan review. 36. Truss calculations that are stamped by the engineer of record and the truss manufacturer engineer are required for plan review submittal. 37. Provide precise grading plan at plan check submittal to check accessibility for persons with disabilities. 38. Please be advised of the 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. 39. Buildings shall provide a house electrical meter to provide for operation of exterior lighting, irrigation pedestals, and fire alarm systems for each building on the site. 40. A pre-construction meeting is required with the building inspector prior to the start of the building construction. Fire Prevention Bureau 41. 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 submittal. 42. 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 4,000 GPM at 20 PSI residual operating pressure for a 4-hour duration. The Fire Flow as given above has taken into account all information as provided (CFC 903.2, Appendix III-A) 43. 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 off-site (6" x 4" x 2-2 1/2" outlets) on a looped system shall be located on fire access roads and adjacent to public streets. Hydrants shall be spaced at 350 feet apart, at each intersection and shall be located no more than 210 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 (CFC 903.2,903.4.2, and Appendix III-B). C\ WI N DOWS\apsdoc\nettemp\4532\$ASQpdf857680 .doc 6 44. 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). Community Services Department 45. 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. 46. The Applicant shall comply with the Public Art Ordinance. 47. All parkways, entry way median, landscaping, walls, fencing and on site lighting shall be maintained by the property owner or maintenance association. 48. The developer shall contact the City's franchised solid waste hauler to verify Trash compactor specifications and servicing requirements priorto purchase and installation of any equipment. C\ WI N DOWS\apsdoc\nettemp\4532\$ASQpdf857680 .doc 7 PRIOR TO ISSUANCE OF GRADING PERMITS C\ WI N DOWS\apsdoc\nettemp\4532\$ASQpdf857680 .doc 8 Planning Department 49. Provide the Planning Department with a copy of the underground water plans and electrical plans for verification of proper placement of transformer(s) and double detector check prior to final agreement with the utility companies. 50. 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, subjectto review and approval by the Director of Planning. 51. The recommendations contained in soils report(s), geotechnical report, and slope stability report shall be implemented. 52. The Applicant shall submit to the Public Works Department an erosion control plan prepared in accordance with City requirements. 53. 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." 54. The project proponent shall enter into a Treatment Agreement with the Pechanga Band of Luiseiio Indians. This agreement will address the treatment and disposition of cultural resources and human remains that may be uncovered during construction as well as provisions for tribal monitors. 55. Tribal monitors from the Pechanga Band of Luiseiio Indians shall be allowed to monitor all grading, excavation and ground-breaking activities, including further surveys, to be compensated by the project proponent. The Pechanga Tribal monitors shall have the authority to temporarily stop and redirect grading activities to evaluate the significance of any archaeological resources discovered on the property, in conjunction with the archeologist and the Lead Agency. 56. A qualified archaeologist monitor shall be present during all earthmoving activities. The monitor shall be empowered to temporarily halt or redirect construction work in the vicinity of the find until it can be evaluated by the project archaeologist in conjunction with the Pechanga Tribe. In the event of a new find, further testing, excavation, and/or reporting may be required. 57. 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 C\ WI N DOWS\apsdoc\nettemp\4532\$ASQpdf857680 .doc 9 of the Pechanga Tribe shall be retained by the project sponsor to investigate the find, and make recommendations as to treatment and mitigation. 58. If human remains are encountered, all activity shall cease and the County Coroner must be notified immediately. State Health and Safety Code Section 7050.5 state that no further disturbance shall occur until the County Coroner has made a determination of the origin and until treatment pursuant to Public Resources Code Section 5097.98 has been decided. The Coroner shall determine if the remains are prehistoric, and shall notify the State Native American Heritage Commission (NAHC) if applicable. Further actions shall be determined pursuant to California Public Resources Code Section 5097.98. 59. The landowner shall agree to relinquish ownership of all cultural resources, including all Luiseiio sacred items, burial goods and all archeological artifacts that are found on the project site to the Pechanga Band of Luiseiio Indians for proper treatment and disposition. 60. All E:asrea E:iteE: within the I3rejest area are te ee aveiaea ana I3reE:ervea. (Deleted at the September 5,2007 Planning Commission) 61. The %-acre of cultural site CA-RIV 237 located in the northeast corner of Planning Application PA06-0370 shall be preserved in Open Space and recorded with the County Recorder of Riverside County as a conservation easement for preservation purposed in perpetuity. The %-acre of CA-RIV 237 shall not be subject to development, archeological testing or ground-disturbing activities. 62. Cultural Resources Sensitivity Training (a 15-minute presentation) should be required for all project personnel. 63. All impacts to the sandstone and fanglomerate members of the Pauba Formation should be monitored full time at the beginning of grading. A trained paleontological monitor shall be present during ground disturbing activities within the project area determined likely to contain paleontological resources. Monitoring will be adjusted to spot checking if initial monitoring shows negative results. 64. Upon encountering any significant fossils, salvage of all fossils in the area will be conducted with additional field staff and in accordance with modern paleontological techniques. 65. Any significant fossils recovered shall be prepared to a reasonable point of identification. Excess sediment or matrix will be removed from the specimens to reduce the bulk and cost of storage. Itemized catalogs of all material collected and identified shall be provided to the museum repository along with the specimens. 66. A report documenting the results of the monitoring and any salvage activities and the significance of the fossils shall be prepared. 67. Any significant fossils recovered, along with the itemized inventory of the specimens, shall be deposited in a museum repository for permanent curation and storage. C\ WI N DOWS\apsdoc\nettemp\4532\$ASQpdf857680 .doc 10 Public Works Department 68. 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. 69. The Developer shall post security and enter into an agreement guaranteeing the grading and erosion control improvements in conformance with applicable City Standards and subject to approval by the Department of Public Works. 70. 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. 71. A Geotechnical Report shall be prepared by a registered engineer or engineering geologist and submitted to the Department of Public Works with the initial grading plan check. The report shall address special study zones and identify any geotechnical hazards for the site including location of faults, slope stability and potential for liquefaction. The report shall include recommendations to mitigate the impact of ground shaking and liquefaction. a. Based on geologic relationships and observations, the site lacks evidence to support the existence/presence of Holocene faulting (i.e. broken soil horizon or shear planes). The building site area is not traversed by an active fault that would affect the stability of the cut slope proposed or the building structure. A certified engineering geologist shall perform regular field reconnaissance during site earthwork construction. This field mapping is intended to further evaluate site conditions and limit the possibility that adverse conditions will be exposed that could affect site stability. 72. 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. 73. Construction-phase pollution prevention controls shall be consistent with the City's Grading, Erosion and Sediment Control Ordinance and associated technical manual, and the City's standard notes for Erosion and Sediment Control. 74. 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. C\ WI N DOWS\apsdoc\nettemp\4532\$ASQpdf857680 .doc 11 75. 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 76. 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. 77. Permanent landscape and irrigation plans shall be submitted to the Planning Department and the Department of Public Works for review and approval. 78. 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. 79. 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. 80. 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. Fire Prevention Bureau 81. 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 required fire flow shall be provided. For this project on site fire hydrants are required (CFC 903.2). 82. Minimum outside turning shall be forty-five (45) feet for commercial buildings. 83. 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 lbs. GVW (CFC 8704.2 and 902.2.2.2). 84. 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 (13) feet six (6) inches (CFC 902.2.2.1). 85. The gradient for a fire apparatus access road shall not exceed fifteen (15) percent (CFC 902.2.2.6 Ord. 99-14). 86. Prior to 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). C\ WI N DOWS\apsdoc\nettemp\4532\$ASQpdf857680 .doc 12 87. Prior to building construction, this development shall have two (2) points of access, via all- weather surface roads, as approved by the Fire Prevention Bureau (CFC 902.2.1). C\ WI N DOWS\apsdoc\nettemp\4532\$ASQpdf857680 .doc 13 PRIOR TO ISSUANCE OF BUILDING PERMIT C\ WI N DOWS\apsdoc\nettemp\4532\$ASQpdf857680 .doc 14 Planning Department 88. 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. 89. Lighting within the proposed project adjacent to preserved habitat shall be of the lowest illumination allowed for human safety and selectively placed, shielded, and directed away from preserved habitat. 90. All downspouts shall be internalized on the office portion of the building. All downspouts for the warehouse/distribution portion of the building shall be painted the same color as the exterior of the building. 91. 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. A note on the plans stating that "Two landscape inspections are required: one inspection is required for irrigation lines and a separate inspection is required for final planting inspection." d. A note on the plans stating that "The contractor shall provide two copies of an agronomic soils report at the first irrigation inspection." e. One copy of the approved grading plan. f. Water usage calculations per Chapter 17.32 of the Development Code (Water Efficient Ordinance). g. Total cost estimate of plantings and irrigation (in accordance with approved plan). h. The locations of all existing trees that will be saved consistent with the tentative map. i. 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. j. 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 (2) 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. C\ WI N DOWS\apsdoc\nettemp\4532\$ASQpdf857680 .doc 15 92. Plants selected for slope landscaping shall be light-weight, deep rooted type vegetations that require little water and are capable of surviving with little irrigation. 93. Landscape plans shall be prepared for all slopes created by the grading and fill of the site consistent with "Slope Planting Guidelines" and the Development Code, and shall provide erosion control on undeveloped portions of the site. 94. Landscape plans for Parcel 4 shall include the off-site slopes created by the development of Parcel 4 (including but not limited to the slopes proposed within Parcel 2 and the detention basin proposed within Parcel 1). All landscaping shall be installed and maintained in satisfactory condition by the property owner. 95. If deemed necessary by the Director of Planning, the applicant shall provide additional landscaping to effectively screen various components of the project (including but not limited to walls and parking areas). 96. 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. 97. All rooftop mechanical equipment shall be screened, or the views minimized, from all existing and future public right-of-ways. 98. Building Construction Plans shall include detailed 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. 99. Building plans shall indicate that all roof hatches shall be painted "International Orange." 100. The construction plans shall indicate the application of painted rooftop addressing plotted on a nine-inch grid pattern with 45-inch tall numerals spaced nine inches apart. The numerals shall be painted with a standard nine-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 101. 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. b. Driveways shall conform to the applicable City of Temecula Standard No. 207A. c. Street lights shall be installed along the public streets adjoining the site in accordance with City Standard No. 800, 801, 802 and 803. d. Concrete sidewalks and ramps shall be constructed along public street frontages in accordance with City of Temecula Standard Nos. 400. 401 and 402. C\ WI N DOWS\apsdoc\nettemp\4532\$ASQpdf857680 .doc 16 e. Improvement plans shall extend 300 feet beyond the project boundaries. f. Minimum centerline radii shall be in accordance with City of Temecula's Standard NO.113. g. All street and driveway centerline intersections shall be at 90 degrees. h. Public Street improvement plans shall include plan and profile showing existing topography, utilities, proposed centerline, top of curb and flowline grades. i. Landscaping shall be limited in the corner cut-off area of all intersections and adjacent to driveways to provide for minimum sight distance and visibility. 102. 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. Winchester Road (Major Arterial Standards - 100' R/W) between Dendy Parkway and the southern project boundary plus transition to include dedication of half-width street right-of-way, installation of half-width street improvements, paving, curb and gutter, sidewalk, painted median, street lights, drainage facilities, signing and striping and utilities (including but not limited to water and sewer). b. Dendy Parkway (Major Arterial Standards - 100' R/W) between Winchester Road and the eastern project boundary plus transition to include dedication of half-width street right-of-way, installation of half-width street improvements, paving, curb and gutter, sidewalk, painted median, street lights, drainage facilities, signing and striping and utilities (including but not limited to water and sewer). c. Remington Avenue (Industrial Collector Highway Standards - 78' R/W) to include dedication of full width street right-of-way, installation of full width street improvements, curb and gutter, sidewalk, painted median, street lights, drainage facilities, signing and striping, utilities (including but not limited to water and sewer). d. Remington Avenue and Winchester Road intersection to include a stop control on the eastbound leg of Remington Avenue for an all-way stop controlled intersection and a striped 200-foot northbound left turn pocket. In addition, secure with a cash deposit to include a year 2009 traffic analysis to determine traffic signal warrants and a fair share contribution for the design and installation of a traffic signal. e. Cherry Street (Major Arterial- 100' R/W) i. Dedication of half-width street right-of-way 103. All street improvement design shall provide adequate right-of-way and pavement transitions per Caltrans' standards for transition to existing street sections. 104. 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: pavement, curb and gutter, medians, sidewalks, drive approaches, street lights, signing and striping. b. Storm drain facilities. c. Sewer and domestic water systems. d. Under grounding of proposed utility distribution lines. C\ WI N DOWS\apsdoc\nettemp\4532\$ASQpdf857680 .doc 17 105. 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. 106. All access rights, easements for sidewalks for public uses shall be submitted and reviewed by the Director of the Department of Public Works and City Attorney and approved by City Council for dedication to the City where sidewalks meander through private property. 107. The building pad shall be certified to have been substantially constructed in accordance with the approved Precise Grading Plan by a registered Civil Engineer, and the Soil Engineer shall issue a Final Soil Report addressing compaction and site conditions. 108. 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. 109. 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. Building and Safety Department 110. Provide appropriate stamp of a registered professional with original signature on plans prior to permit issuance. Fire Prevention Bueau 111. The developer shall furnish three copies of the water system plans directly 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 241-4.1). 112. 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 lbs. GVW with a minimum AC thickness of .25 feet (CFC sec 902). 113. Fire sprinkler plans shall be submitted to the Fire Prevention Bureau for approval. Three sets of sprinkler plans must be submitted by the installing contractor to the Fire Prevention Bureau. 114. Fire alarm plans shall be submitted to the Fire Prevention Bureau for approval. The alarm system requires a dedicated circuit from the house panel. Three sets of alarm plans must be submitted by the installing contractor to the Fire Prevention Bureau. 115. Fuel modification plans shall be submitted to the Fire Prevention Bureau for review and C\ WI N DOWS\apsdoc\nettemp\4532\$ASQpdf857680 .doc 18 approval for all open space areas adjacent to the wildland-vegetation interface (CFC Appendix II-A) 116. Plans for structural protection from vegetation fires shall be submitted to the Fire Prevention Bureau for review and approval. The measures shall include, but are not limited to, enclosing eaves, noncombustible barriers (cement or block walls), and fuel modification zones (CFC Appendix II-A) Community Services Department 117. The developer shall complete the TCSD application process, submit an approved Edison Streetlight Plan and pay the appropriate energy fees related to the transfer of street lighting into the TCSD maintenance program. 118. The developer shall provide TCSD verification of arrangements made with the City's franchise solid waste hauler for disposal of construction debris. C\ WI N DOWS\apsdoc\nettemp\4532\$ASQpdf857680 .doc 19 PRIOR TO RELEASE OF POWER, BUILDING OCCUPANCY OR ANY USE ALLOWED BY THIS PERMIT C\ WI N DOWS\apsdoc\nettemp\4532\$ASQpdf857680 .doc 20 Planning Department 119. If deemed necessary by the Director of Planning, the applicant shall provide additional landscaping to effectively screen various components of the project. 120. 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 equipment from 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. 121. 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. 122. 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 Gfle two 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. (Amended at the September 5,2007 Planning Commission) 123. 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." 124. 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. 125. 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. 126. All of the foregoing conditions shall be complied with prior to occupancy or any use allowed by this permit. C\ WI N DOWS\apsdoc\nettemp\4532\$ASQpdf857680 .doc 21 Public Works Department 127. 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. 128. 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 129. All public improvements, including traffic signals, shall be constructed and completed per the approved plans and City standards to the satisfaction of the Director of the Department of Public Works. 130. 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 Bureau 131. "Blue Reflective Markers" shall be installed to identify fire hydrant locations (CFC 901.4.3). 132. 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 shall have a minimum twelve (12) inches numbers with 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). 133. Based on square footage and type of construction, occupancy or use, the developer shall install a fire sprinkler system (CFC Article 10, CBC Chapter 9). 134. 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 prior to installation (CFC Article 10). 135. 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 (CFC 902.4). 136. 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). 137. 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. C\ WI N DOWS\apsdoc\nettemp\4532\$ASQpdf857680 .doc 22 138. Buildings housing high-piled combustible stock shall comply with the provisions of Uniform Fire Code Article 81 and all applicable National Fire Protection Association standards. The storage of high-piled combustible stock may require structural design considerations or modifications to the building. Fire protection and life safety features may include some or all of the following: an automatic fire sprinkler system(s) designed for a specific commodity class and storage arrangement, hose stations, alarm systems, smoke vents, draft curtains, Fire Department access doors and Fire department access roads (CFC Article 81). 139. Prior to the building final, speculative buildings capable of housing high-piled combustible stock, shall be designed with the following fire protection and life safety features: an automatic fire sprinkler system(s) designed for a specific commodity class and storage arrangement, hose stations, alarm systems, smoke vents, draft curtains, Fire Department access doors and Fire department access roads. Buildings housing high-piled combustible stock shall comply with the provisions California Fire Code Article 81 and all applicable National Fire Protection Association standards (CFC Article 81). 140. 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). 141. A simple plot plan and a simple floor plan, each as an electronic file of the .DWG format must be submitted to the Fire Prevention Bureau. Alternative file formats may be acceptable, contact Fire Prevention for approval. 142. 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) 143. If there are changes to underlying maps then prior to map recordation the applicant shall submit to the Fire Prevention Bureau a georectified (pursuant to Riverside County standards) digital version of the map including parcel and street centerline information. The electronic file will be provided in a ESRI Arclnfo/ArcView compatib/eformat and projected in a State Plane NAD 83 (California Zone VI ) coordinate system. The Bureau must accept the data as to completeness, accuracy and format prior to satisfaction of this condition. 144. 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). C\ WI N DOWS\apsdoc\nettemp\4532\$ASQpdf857680 .doc 23 OUTSIDE AGENCIES C\ WI N DOWS\apsdoc\nettemp\4532\$ASQpdf857680 .doc 24 145. The applicant shall comply with the recommendations set forth in the Department of Environmental Health transmittal dated January 17, 2007, a copy of which is attached. 146. The applicant shall comply with the recommendation set forth in the Rancho Water District's transmittal dated December 27, 2006, a copy of which is attached. 147. The applicant shall comply with the recommendations set forth in the Eastern Information Center's transmittal dated December 19, 2006, a copy of which is attached. 148. The applicant shall comply with the recommendations set forth in the Pechanga Cultural Resources comment letter dated December 22, 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 C\ WI N DOWS\apsdoc\nettemp\4532\$ASQpdf857680 .doc 25 DATE OF MEETING: PREPARED BY: PROJECT DESCRIPTION: RECOMMENDATION: CEQA: STAFF REPORT - PLANNING CITY OF TEMECULA PLANNING COMMISSION ORIGINAL September 5. 2007 Dana Schuma Associate Planner TITLE: Planning Application Nos. PA07-0220, a Development Agreement; PA07-0048, a General Plan Amendment; PA06- 0370, a Tentative Tract Map (TTM 35181), PA06-0369 a Development Plan; and PA07-0090 a Minor Exception for a 608,934 square foot industrial distribution building on 32 acres, and for the future development of the remaining 52 acres to include industrial, commercial, retail, high-density residential, and/or public institutional facility land uses [gJ Approve with Conditions o Deny o Continue for Redesign o Continue to: o Recommend Approval with Conditions o Recornmend Denial o Categorically Exempt (Section) (Class) o Notice of Determination (Section) o Negative Declaration [gJ Mitigated Negative Declaration with Monitoring Plan DEIR G:IPlanningI2006\PA06-0370 PHS Tentative Map (TTM35181 )IPlanninglPCIPC STAFF REPORT.doc PROJECT DATA SUMMARY Name of Applicant: Temecula Properties, LLC (The Garrett Group and PHS) Date of Acceptance: December 12,2006 Mandatory Action Deadline Date: September 5, 2007 General Plan Designation: Industrial Park (IP) Zoning Designation: Liqht Industrial (L1) Site/Surrounding Land Use: Site: Vacant North: South: East: West: Vacant Industrial Development Industrial Development Vacant Lot Area: 84 acres Total Floor Area/Ratio: 608,934 SF/0.43 FAR (Lot 4 ofTTM 35181) Landscape Area/Coverage: 354,762 SF/25.35 percent coveraqe (Lot 4 of TTM 35181) Parking Required/Provided: 801 parking spaces required/409 parking spaces provided (Lot 4 of TTM 35181) BACKGROUND SUMMARY In August of 2006, the City of Temecula staff identified a number of incentives to encourage Professional Hospital Supply (PHS) to expand its facilities within the community. PHS is currently one of the largest employers in the City, and the retention and expansion of their facilities is considered to be an important priority for the City Council. Between August 2006 and December 2006, City staff and the representatives of PHS and the Garrett Group, the current property owner and developer, met regularly to forecast the project entitlement process, and discuss environmental issues and site planning for the 84-acre site and lot selected for the PHS expansion. On September 18, 2006, the applicant filed an application for a Lot Line Adjustment (LLA) to facilitate the future PHS development on a 32-acre portion of the 84-acre site. The LLA was approved and recorded in December 2006. Applications for a Tentative Tract Map (TTM 35181) and a Development Plan were submitted on December 12, 2006. A DRC meeting was held on January 4,2007, to discuss site design, landscaping, architecture, access points, right- of-way easements, and other departmental issues. The applicant' submitted a revised Tentative Tract Map and Development Plan on February 6, 2007. An application for a General Plan Amendment was shortly submitted thereafter on February 8, 2007. A status letter addressing several outstanding project items including additional Tentative Map comments was sent to the applicant on March 6, 2007. The applicant submitted a Minor Exception for a one percent building height increase on March 20, 2007. G:IPlanningI2006IPA06-0370 PHS Tentative Map (TTM35181)IPlanningIPCIPC STAFF REPORT. doc 2 Weekly meetings continued with the representatives of the Garrett Group and PHS to discuss concerns over environmental impacts and unresolved Tentative Map issues, including the Western Bypass right-of-way easement, access points, fault zones, grading, slopes, etc. The applicant submitted a third revised Tentative Map on April 6, 2007, a fourth revision on May 10, 2007, and a fifth revision on May 25, 2007. As staff continued to work with the applicants between March and June to address the outstanding issues, several status letters were sent documenting the remaining unresolved items before the project could be scheduled for hearing. Final Development Plans consistent with the Tentative Tract Map were submitted on June 14, 2007, and the plans addressed Planning staff recommendations. A final environmental report (Jurisdictional Delineation) was submitted on June 27, 2007 which enabled staff to move forward with the initial study for the project. Staff prepared and noticed the Notice of Proposed Negative Declaration for comment on August 4, 2007. Staff has worked with the applicant over the last year to ensure that all concerns have been addressed, and the applicant concurs with the recommended Conditions of Approval; however, the applicant still has some concerns over the proposed cultural mitigation and is currently working with the Pechanga Tribe to amend the language to address their concerns. ANALYSIS Development Aareement The purpose of the proposed Development Agreement is to guarantee the right of Professional Hospital Supply (PHS) to expand their facility and establish the physical development parameters that the expansion would bring to the community. The proposed Development Agreement would guarantee PHS the ability to construct a corporate headquarters on 32 acres of an 84-acre site generally located at the northwest corner of Dendy Parkway and Winchester Road. The proposed Agreement will also authorize future industrial, commercial, retail, high density residential, and/or public institutional facility uses on the remaining 52 acres surrounding the PHS facility. A copy of the Development Agreement is included in this staff report. The proposed Development Agreement provides benefits for both parties, which includes a high quality development on the subject property, certainty in the type of development to be undertaken on the property, and the assurance of adequate public facilities to ensure the good of the community. For the City, the proposed agreement serves to provide for employment growth anticipated to result from development of the property, an increase in sales tax revenues anticipated to result from development of the property, and the achievement of the goals and directives of the General Plan. The following summarizes several proposed terms of the agreement: . Establish the term of the Development Agreement for ten consecutive years from the date of a Certificate of Occupancy for the building to be constructed on the PHS site. . Development of the property for industrial, commercial, retail, high-density residential and public institutional facility uses in accordance with the specific matrix of permitted uses in the agreement. Commercial and office facilities are anticipated to bring employment and generate sales tax revenue. . Establish vested rights to develop the property only upon sale or lease of the PHS property. . Provide for any multi-family residential uses on Parcel 1 located on the ~astern portion G:IPlanningI2006IPA06-0370 PHS Tentative Map (TTM35181j1Pianning1PCIPC STAFF REPORT.doc 3 of the property to include an affordable housing component (20 percent of each phase developed). . Provide for a maximum Floor Area Ratio of 45 percent for the PHS property. In addition to the Development Agreement, the project includes a DIF Deferral Agreement which will authorize a fee wavier in the amount of $2,000,000 towards any City fees or costs. General Plan Amendment The purpose of the General Plan Amendment is to designate the 84 acres as a future Specific Plan area. The future Specific Plan is anticipated to implement the City of Temecula General Plan land use goals and policies by encouraging diverse, high-quality land uses and mixed use development on the acreage surrounding the PHS site. By accommodating a diverse mix of land uses the City can achieve a suitable inventory of housing for a range of income groups, a viable commercial and employment base for residents, and high-quality urban lifestyles. Designating the land as a future Specific Plan Area will still provide a guideline for future maximum density and intensity of development, while encouraging mixed commercial, office, and residential development in a key location west of 1-15 and adjacent to the future Western Bypass corridor. The uses anticipated under the future Specific Plan will be analyzed for General Plan consistency with the Specific Plan proposal. Tentative Tract MaD No. 35181 The project proposes to subdivide approximately 84 acres into five lots, four developable parcels and one easement parcel for slope and drainage purposes. The property is zoned Light. Industrial. The development standards for LI found in Section 17.06.040 of the Development Code require that lots within this zone have a minimum lot size of 40,000 square feet. The average lot size will be approximately 15 acres. Lots 1 and 2 will be approximately 15 acres each, Lot 3 will be approximately 5 acres, Lot 4 will be 32 acres, and Lot 5 will be approximately 17 acres. A future Specific Plan will define the anticipated land uses and development standards for three of the four developable parcels. The future Specific Plan, consistent with the Development Agreement, will accommodate for future industrial, commercial, retail, high-density residential, and/or public institutional facility land uses on the three parcels totaling approximately 35 acres. A Development Plan (PA06-0369) for Parcel 4 proposes a new industrial medical distribution facility for Professional Hospital Supply (PHS) Corporation. DeveloDment Plan The Development Plan for Parcel 4 will allow PHS to expand their operations onto this site from another location in the City. The proposed plan provides for a development of up to 608,934 square feet of building area on a 32 acre parcel. The project will consist of a three- story industrial building for office, warehouse/distribution use, and a 400 square foot pump house. The maximum building height allowed in the Light Industrial (L1) zone is 50 feet. The warehouse portion of the building will be 42 feet in height, and the 82,476 square foot office/entrance portion along the eastern side will be 50'8" in to accommodate for adequate ceiling heights on the interior as well as adequate rooftop equipment screening with a decorative exterior cornice. Additionally, the project proposes an increased floor area ratio (FAR). The target FAR is 40 percent and the project proposes a floor area ratio (FAR) of 0.44 percent, not to exceed 45 percent per the proposed Development Agreement. The G:\Planning\2006IPA06-0370 PHS Tentative Map (TTM35181)IPlanningIPCIPC STAFF REPORT.doc 4 Development Code does allow for projects to exceed the target FAR when the project provides for outstanding and exceptional employment, fiscal, social, and economical benefits to the City and community (Development Code Section 17.08.050). The project as designed conforms to all the development regulations listed in the City's Development Code, including building setbacks and lot coverage. The building's FAR and height are in excess of the Development Code requirements, but the applicant has applied for a Minor Exception to allow for the increases. Access, Circulation, and Parking The PHS project site will have two access points from the street. Primary access to the proposed development will be provided via an entrance off of Dendy Parkway, with secondary access provided via an entrance off of a proposed extension of Remington Avenue. The parking lot provides adequate circulation for distribution trucks and vehicles anticipated to utilize the site. The majority of distribution operations will take place at the rear of the site, screened from the main building entrance and common pedestrian traffic. The Fire Department has reviewed the site plan and determined that there is proper access and circulation to provide emergency service vehicles to the site. The Public Works Department has reviewed the site plan and has determined that the project, as conditioned, provides adequate access points and right-of-way dedications. In addition, staff has analyzed the potential traffic impacts of the project provided in the Traffic Impact Analysis Report prepared by Urban Crossroads dated October 20, 2006, and has determined that with implementation of the required improvements and fees as part of the Conditions of Approval the projected traffic volumes for the site will be less than significant. The City of Temecula requires parking be provided at a ratio of one space per 1,000 square feet of warehouse and one space per 300 square feet of office. Parking to accommodate the proposed development will be accomplished by 409 surface parking spaces (401 standard and 8 handicap accessible parking spaces). The City's parking ordinance does not address large scale distribution facilities such as the proposed project; however, other jurisdictions in southern California do. Based on City standards a total of 801 parking spaces are required for the PHS project. The project will provide a total of 409 on site parking spaces. Based on PHS's unique operations, in which warehouse/distribution activities run seven days a week/24 hours a day in three shifts with approximately 245 employees per shift, an alternate parking plan has been implemented.. Recognizing that distribution facilities require above average loading capacity and typically have lower employee counts, 409 parking spaces are adequate for the facility size and use. The alternate parking plan is based upon the inverse relationship between loading capacity for freight movement and employee parking requirements. If the use on Parcel 4 were to change in the future, in which the required amount of warehouse storage and loading areas were to decrease and employee parking needs were to increase, the site can accommodate for an additional 392 automobile parking by re-stripping the loading areas. Architecture The proposed PHS building is consistent with the Development Code, Design Guidelines, and compatible with other adjacent buildings. The proposed architecture includes smooth cDncrete with decorative reveals. The applicant uses color variation in hues of grey and beige to break up the building mass. A varying parapet height and decorative cornice along the roof of the office portion help provide for visual interest along the long expansive walls of the warehouse. Color and reveals on all sides of the building help to break up the expansive walls. The G:IPlanning\2006IPA06-0370 PHS Tentative Map (TTM35181)IPlanningIPCIPC STAFF REPORT.doc 5 building also includes an enhanced three-story image zone by emphasizing the entrance/office portion of the building. A 170-foot wide protruding entrance lobby is provided complete with a ten-foot recessed entryway, large expanses of windows, and a decorative steel canopy. The design is further enhanced with deep vertical and horizontal reveals, decorative lighting, and enhanced paving to complete the look of a high-quality industrial building that is both functional and aesthetically pleasing. Landscaping The PHS landscape plan conforms to the landscape requirements of the Development Code and Design Guidelines. Tree and shrub placement will serve to screen onsite parking, trash enclosure areas, and effectively soften building elevations and retaining walls along Winchester Road and Remington Avenue. The project proposes 12 different types of trees in various sizes ranging from 15 gallon to 48-inch size box trees. The project also provides for an outdoor employee break area, as well as decorative pedestrian friendly features including an auto court at the front entrance. The employee break area will be complete with tables, benches, decorative paving as well as trellis structures and canopy trees to provide shade. The project proposes to landscape 354,762 square feet or 25 percent of the site, which exceeds the minimum landscaping requirement of 20 percent for the Light Industrial (L1) zone. In addition, an approximate 110 foot wide slope on Parcel 2 (approximately 4 acres) will be landscaped as part of the development of Parcel 4 (See Condition of Approval No. 94). Notice of the public hearing was published in the Californian on August 25, 2007 and mailed to the property owners within the required 600-foot radius. 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: 1. Pursuant to California Environmental Quality Act ("CEQA"), City staff prepared an Initial Study of the potential environmental effects of the approval of the Development Agreement, General Plan Amendment, Tentative Tract Map (TTM 35181), Development Plan, and Minor Exception 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. 2. 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. The public comment period commenced on August 4, 2007, and expired on September 3, 2007. Copies of the documents have been available for public review and inspection at the offices of the Department of Planning, located at City Hall, 43200 Business Park Drive, Temecula, California 92590. 3. Three written comments were received prior to the public hearing and a response to all the comments made therein was prepared, submitted to the Planning Commission and incorporated into the administrative record of the proceedings. G:IPlanning\2006IPA06-0370 PHS Tentative Map (TTM35181)IPlanningIPCIPC STAFF REPORT.doc 6 4. The Planning Commission has reviewed the Mitigated Negative Declaration and all comments received regarding the Mitigated Negative Declaration prior to and at the date public hearing, and based on the whole record before it finds that: (1) the Mitigated 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 Mitigated Negative Declaration reflects the independent judgment and analysis of the Planning Commission. 5. Based on the findings set forth in this Resolution, the Planning Commission hereby adopts the Mitigated Negative Declaration prepared for this project. CONCLUSION/RECOMMENDATION Staff has determined that the proposed project, as conditioned and upon approval of the Development Agreement, General Plan Amendment, and Minor Exception, is consistent with the City's General Plan policies, Development Code, and all applicable ordinances, standards, guidelines, and policies. Therefore, staff recommends approval of the Development Agreement, General Plan Amendment, Tentative Tract Map, Development Plan, and Minor Exception with the attached Conditions of Approval. FINDINGS Develooment Aareement To recommend approval of the Development Agreement, the following findings must be made: 1. The Development Agreement is consistent with the objectives, policies, general land uses, and programs specified in the City of Temecula General Plan in that the Development Agreement makes reasonable provision for the use of certain real property for industrial, commercial and residential development. 2. The Development Agreement complies with the goals and objectives of the Circulation Element of the General Plan, and the traffic impacts of the development will be less than significant or substantially mitigated by the mitigation measures and Conditions of Approval imposed. 3. The project subject to the Development Agreement is compatible with the uses authorized in, and the regulations prescribed for the zoning district in which the property subject to the Development Agreement is located, and that this Development Agreement is consistent with good planning practices by providing for the opportunity to develop the property consistent with the General Plan. 4. The Development Agreement is in conformity with the public convenience, general welfare, and good land use practice because it makes reasonable provision for a balance of land uses compatible with the remainder of the City. 5. The Development Agreement will not be detrimental to the health, safety, or general welfare of the community because it provides adequate assurances for the protection thereof. G:IPlanning\2006IPA06-0370 PHS Tentative Map (TTM35181)IPlanningIPCIPC STAFF REPORT.doc 7 6. The benefits that will accrue to the people of the City of Temecula from this legislation and this Development Agreement are expansion of an important local employer that could bring additional employment opportunities to local residents. 7. The potentially significant impacts to the environment from the project will be mitigated to a less than significant level based upon the identified mitigation measures. General Plan Amendment 1. The amendments are compatible with the health, safety and welfare of the community. The proposed amendment to add a future Specific Plan area to Table LU-5 ofthe Land Use Element meets the goals and policies of the General Plan, and is consistent with the anticipated impacts of the Final Environmental Impact Report (EIR) for the General Plan and the guidelines of the Development Code. Any future proposals for the Specific Plan area will be subject to the City's General Plan, Development Code and Design Guidelines to ensure the public health, safety and welfare of the community is maintained as new developmentoccurs. . 2. The amendment is compatible with existing and surrounding uses. The proposed amendment to add a future Specific Plan area to Table LU-5 of the Land Use Element is compatible with the existing and surrounding uses because any future proposals for the 84-acre site will be consistent with the goals and policies of the General Plan and the content and processing requirements contained in the Development Code. Therefore, the proposed amendment will be compatible with existing and future uses in the surrounding area. 3. The amendments will not have an adverse effect on the community and are consistent with the goals and policies of the adopted General Plan. The proposed amendment will not conflict with the existing zoning or designated land uses throughout the City. The proposed amendment will result in compatible future development, which meets the recommended land use and circulation pattern, maximum density and intensity of development, a desired mix of uses and other factors consistent with the goals and policies of the General Plan. Tentative Parcel MaD (16.09.1401 1. The proposed subdivision and the design and improvements of the subdivision are consistent with the Development Code, General Plan, and the City of Temecula Municipal Code. Tentative Tract Map No. 35181 is consistent with the General Plan, the Subdivision Ordinance, the Development Code, and Municipal Code because the project has been designed in a manner that is consistent with the policies and standards in the General Plan, Subdivision Ordinance, Development Code, and Municipal Code. G:'Planning\2006'PA06-0370 PHS Tentative Map (TTM35181)'PlanningIPCIPC STAFF REPORT.doc 8 2. The Tentative Map does not propose to divide land which is subject to a contract entered into pursuant to the California Land Conservation Act of 1965, or the land is subject to a Land Conservation Act contract but the resulting parcels following division of the land will not be too small to sustain agricultural use. The subject parcels do not propose to divide land which is subject to a contract entered into pursuant to the California Land Conservation Act of 1965. The subject property has not been designated for conservation or agricultural land and is not subject to the California Land Conservation Act of 1965. 3. The site is physically suitable for the type and proposed density of development proposed by the Tentative Map. The site is physically suitable for the proposed industrial development because the proposed use is consistent with the General Plan and Development Code. The proposed Tentative Tract Map (TTM 35181) meets the minimum lot size requirements contained within the Development Code, and is consistent with all of the requirements found within City of Temecula General Plan and the City of Temecula Subdivision Ordinance. The subdivision (TTM 35181) is therefore consistent with the Light Industrial zone. 4. The design of the subdivision and the proposed improvements, with Conditions of Approval are not likely to cause significant environmental damage or substantially and avoidably injure fish or wildlife or their habitat. . The proposed project site does contain sensitive habitat. The project impacts will be mitigated to a level of insignificance based upon the identified mitigation measures and the Conditions of Approval and will not therefore cause significant environmental damage or substantially and avoidably injure fish or wildlife in their habitat. 5. The design of the subdivision and the type of improvements are not likely to cause serious public health problems. The project, as conditioned by the Fire Prevention Bureau, the Public Works Department, and the Building and Safety Department, will comply with the applicable improvement requirements designed to prevent serious public health problems. Furthermore, provisions are made in the General Plan and the Development Code to ensure that the public health, safety and welfare are safeguarded. The project is consistent with these documents. 6. The design of the subdivision provides for future passive or natural heating or cooling opportunities in the subdivision to the extent feasible. Prior to any issuance of building permits for the subject subdivision, and prior to any construction, the applicant will be required to submit building plans to the City of Temecula Building Department. These plans will be required to comply with all applicable Uniform Building Codes, which also include requirements for energy conservation. Therefore, the construction plans will comply with all applicable building codes and State energy guidelines. G:IPlanning\2006\PA06-0370 PHS Tentative Map (TTM35181 )IPlanninglPGIPC STAFF REPORT.doc 9 7. The design of the subdivision and the type of improvements will not conflict with easements acquired by the public at large for access through or use of property within the proposed subdivision, or the design of the alternate easements which are substantially equivalent to those previously acquired by the public will be provided. The required right-of-way easements, including the future Western Bypass and Cherry Street alignments, are included on the Tentative Tract Map (TTM 35181). The City has reviewed these easements and the design of alternate easements, and determined the type of improvements will not conflict with the easements acquired by the public at large for access through or use of property within the proposed subdivision. 8. The subdivision is consistent with the City's parkland dedications requirements (Quimby). The subdivision is consistent with the dedication requirement. Develooment Plan (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 project is consistent with the General Plan and the Development Code because the project has been designed in a manri"er that it is consistent with the applicable policies and standards for light industrial development. The proposed industrial use is permitted in the land use designation standards contained in the General Plan and Development Code. The site is properly planned and zoned, and as conditioned, is physically suitable for the type of development proposed. The project, as conditioned, is also consistent with other applicable requirements of State law and local ordinances, including the California Environmental Quality Act (CEQA), the City Wide Design Guidelines, and 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 project, including site design, building height, setbacks, parking, circulation, and other associated site improvements is intended to protect the health and safety of those working in and around the site. The project is consistent with all applicable policies, guidelines, standards and regulations intended to ensure that the development will be constructed, and function in a manner consistent with the public health, safety, and welfare. Soecial Use Reaulations and Standards. Increase in Floor Area Ratio (17.08.050.Al 1. The project includes a use which provides outstanding and exceptional benefits to the City with respect to the employment, fiscal, social and economic needs of the community. G:IPlanning\2006IPA06-0370 PHS Tentative Map (TTM35181)IPlanningIPCIPC STAFF REPORT.doc 10 The project provides exceptional fiscal and economical benefits to the City in that Professional Hospital Supply (PHS) is a major employer within the City, as well as a large generator of sales tax revenue. PHS has experienced substantial growth and their continued growth and expansion within the City will help to meet the fiscal and economic needs of the community. The proposed expansion site requires a four percent floor area ratio increase for a state of the arl distribution facility and office headquarlers large enough to accommodate future growth of PHS operations. Minor ExceDtion 117.03.060.0\ 1. There are practical difficulties and unnecessary hardships created by strict application to the code due to physical characteristics of the property. There are practical difficulties related to the building construction and architecture that make it difficult to meet the development standards for the Light Industrial (L1) zone without the Minor Exception. In order to provide an appropriate ceiling height for each of the office floors and visually screen roof top equipment the cornice along the office porlion of the building must be 50'8" in height, thus requiring a one percent building height increase to meet the development standards of the LI zone. Without the granting of the Minor Exception the building would not meet the current standards, which poses a practical difficulty and unnecessary hardship. 2. The Minor Exception does not grant special privileges which are not otherwise available to surrounding properties and will not be detrimental to the public welfare or to the property of other persons located in the vicinity. The Minor Exception does not grant special privileges which are not otherwise available to surrounding properlies because the exception is consistent with Development Code, which allows for up to a 15 percent deviation from the LI development standard. The request for the Minor Exception allows for the one percent height increase of eight inches and special privileges have not been granted which are not otherwise available by meeting the findings within the Development Code. The granting of this exception will not be detrimental to the public welfare or properly of other persons within the vicinity as the height increase is only for the office porlion of the building, which is only 14 percent of the entire building footprint. 3. The Minor Exception places suitable conditions on the property to protect surrounding properties and does not permit uses which are not otherwise allowed in the zone. The Minor Exception to increase the building height places suitable conditions on the properly to protect surrounding properlies. The proposed project is for an industrial building, which is permitted in the Light Industrial zone. The Minor Exception will allow a one percent height increase, which will not allow for uses which are not otherwise allowed in the zone. G:IPlanning\2006IPA06-0370 PHS Tentative Map (TTM35181)\PlanningIPCIPC STAFF REPORT. doc 11 ATTACHMENTS 1. Vicinity and Aerial Maps - Blue Page 13 2. Plan Reductions - Blue Page 14 3. PC Resolution 07-_ - Blue Page 15 (Development Agreement) Exhibit A - Draft CC Resolution 07- 4. PC Resolution 07-_ - Slue Page 16 (General Plan Amendment) Exhibit A - Draft CC Resolution 07- 5. PC Resolution 07-_ - Blue Page 17 (Tentative Tract Map) Exhibit A - Draft Conditions of Approval 6. PC Resolution 07-_ - Blue Page 18 (Development Plan and Minor Exception). Exhibit A - Draft Conditions of Approval 7. Initial Study - Blue Page 19 8. Mitigation Monitoring Plan - Blue Page 20 9. Public Correspondence - Blue Page 21 10. Parking Study - Blue Page 22 11. Statement of Justification - Blue Page 23 12. Notice of Public Hearing - Blue Page 24 G:IPlanningI2006\PA06-0370 PHS Tentative Map (TTM35181)IPlanningIPCIPC STAFF REPORT.doc 12 ATTACHMENT NO.1 VICINITY AND AERIAL MAPS G:IPlanning\2006IPA06-0370 PHS Tentative Map (TTM35181)IPlanningIPCIPC STAFF REPORT.doc 13 ~ , "f:c)k '<' ~~ ~0i ;p "'+ q( ~." ~'" :l() -/:I." '\, '2,"':>. "'~ .if"" ~.. ,N ./ c.' /.... 00. ~Q: "'~ .so.:.,/,.. o-GLE4; 't>" "t ""'e .~.. , I 00'0 >i'O 0.p' ~J '\ /::::. ''b,,, "'" <>, <1". "1", ~ ,~~ .0/ ,,{" ',' 'f.." -tY '" ' ",' .$' \ \ \ 9' 'h '"Ill " ~ W '9 cc:~'c:.ilJ. f -, ,,\, k F:-CT"~'+'C=,.~".~ ___.m- 1 -...... W 0:: .-,~- ~ .-~ ;:; :!!___ _~_,----'1--' project Site \, ,9s,', ;.0 ". ~</. :013' , ~ - 1'0 ~. if w .i' ", O'E-\)J({0~-:'-"~~~? )''>I~~\Of>.. L, \, \ -,---_.~-- ''<\~''''-"", ~f' ~, .l ~tt "'~~. .. ". '" ....,,'" ',.. ., " (. 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" " 3,000 - ~ 4,000 -F~ , . City ofTemecula o~~' ~" ] $' ff -'\" / ~ < I PA06-0370 I ~ N ~ o , 600 1,200 2,400 3,600 Feet Legend ~ ".:#,'. This map was made by the City ofTerne4lla'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 Cour>.ty. The City ofiemecula assume,& no WiMI20flty or legal respom\bl~\y fer the infonnalioncontainedonlhismap.DataandinfonnatiOnrepresantedonlhlsmap are subject to update and modification. The Geographic Information System and oIhersources should be queried fottl1emostcurrenlinformallon. This map is not for reprint or resale. R:\GIS\AaronMISMS Templates\5ms_template.mxd -<\. ATTACHMENT NO.2 PLAN REDUCTIONS G:'Planning\2006'PA06-0370 PHS Tentative Map (TTM35181 )'PlanningIPCIPC STAFF REPORT.doc 14 I! ~~. l'l' l~~~~ i's ~ ! ~" ~ ~ ~iii~i ~ i ~~~dl ~ ' l 1 ! ~ ~ ~, ~,! ~ I d h!~ ! !nnh U ! ! I " ~ " II !' 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II II II Ii ~ ~!ii, I~ 1111 II II II II i 1m @~t)OOcf ~ mll I n ~ II; ~ "b l I h I' II II Ii I I II L .~ ,~~, ! u !i II I ! II II I I I ill! 'I J II I I I III I II ! I 1111 I II, Ill! 11111 II II II ill ~ II O~@~~I~,,~ "oB,~';;ir;;;"NTI r-..../ I -~ Ii II 'JNI'SMOmAN H l..L A'lddllS 'lYUdSOH 'IVNOISSaiIOlId i ~ ~ I~ 'T! .~. _.....:..",.''''''''.. ~ . ~ ...J~ :,,""'......""" 1N't1da.:......"...,..,-U!lImWl~"""-""'" I..lb !!i MATC~LINE SEE S~EET L-3 .,.............~............. r'- , " c"'""'" r-- Efi , , , " ": ..J I- W W I ., W W ., W ;<; :i o I- <t r: Lt- , J " ~ w " ~ - ~ u II . --~;;j~:r 1"1 J~JT1IJ!4I"3~: :. ~"'l'o'~S~"ll' 4........s"ll'f'ld~ .~. ~I .. ::1 .j~~~ l:r I" "dIDS 'lVLldSOH ~"';;;;;=CI 1~~I'IIl! ~!. V _""""'.ill'",,,,. ~ ~ i...Jl!I """"""'NVU IN't1d "'...T...g....."T I ~1-lI,:RirIdm1ll.....~ t~l. . ,,," I: I I !! i!! ' , : ;11 II In I ! I r I I ! 1 Ii ! I ! ! ! i I I I ! i I i III II! ! !! I I ! ! ! ! ! I .. i ~I' illl'l I II!! ! 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ATTACHMENT NO.3 PC RESOLUTION NO. 07-_ (DEVELOPMENT AGREEMENT) G:IPlanning\2006IPA06-0370 PHS Tentative Map (TTM35181)IPlanningIPCIPC STAFF REPORT.doc 15 PC RESOLUTION NO. 07- A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF TEMECULA RECOMMENDING THAT THE CITY COUNCIL APPROVE A RESOLUTION ENTITLED "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA APPROVING PLANNING APPLICATION NO. PA07-0220, A DEVELOPMENT AGREEMENT BETWEEN TEMECULA PROPERTIES, LLC AND THE CITY OF TEMECULA TO AUTHORIZE THE DEVELOPMENT OF AN APPROXIMATE 84 ACRE SITE GENERALLY LOCATED AT THE NORTHWEST CORNER OF WINCHESTER ROAD AND DENDY PARKWAY IN THE CITY OF TEMECULA (APN 909-370-018 AND 909-370-032) Section 1. Procedural Findinas. The Planning Commission of the City of Temecula does hereby find, determine and declare that: A. On September 5, 2007, the Planning Commission recommended that the City Council approve Planning Application No. PA07-0220. B. The Agreement 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 the application and environmental review on September 5, 2007, at a duly noticed public hearing as prescribed by law, at which time the City staff and interested persons had an opportunity to and did testify either in support or in opposition to this matter. D. At the conclusion of the Commission hearing and after due consideration of the testimony, the Commission recommended that the City Council approve Planning Application No. PA07-0220 subject to and based upon the findings set forth hereunder. E. All legal preconditions to the adoption of this Resolution have occurred. Section 2. Further Findinas. The Planning Commission, in recommending that the City Council approve the application hereby finds, determines and declares that: To recommend approval of the Development Agreement, the following findings must be made: A. The Development Agreement is consistent with the objectives, policies, general land uses, and programs specified in the City of Temecula General Plan in that the Development Agreement makes reasonable provision for the use of certain real property for industrial, commercial and residential development. G:\Planning\2007\PA07~0220 PHS Development Agreement\Planning\DRAFT PC Reso DA.doc 1 B. The Development Agreement complies with the goals and objectives of the Circulation Element of the General Plan, and the traffic impacts of the development will be less than significant or substantially mitigated by the mitigation measures and Conditions of Approval imposed. C. The project subject to the Development Agreement is compatible with the uses authorized in, and the regulations prescribed for the zoning district in which the property subject to the Development Agreement is located, and that this Development Agreement is consistent with good planning practices by providing for the opportunity to develop the property consistent with the General Plan. D. The Development Agreement is in conformity with the public convenience, general welfare, and good land use practice because it makes reasonable provision for a balance of land uses compatible with the remainder of the City. E. The Development Agreement will not be detrimental to the health, safety, or general welfare of the community because it provides adequate assurances for the protection thereof. . F. The benefits that will accrue to the people of the City of Temecula from this legislation and this Development Agreement are expansion of an important local employer and could bring additional employment opportunities to local residents. G. The potentially significant impacts to the environment from the project will be mitigated to a less than significant level based upon the identified mitigation measures. Section 3. Environmental Compliance. The Planning Commission hereby makes the following environmental findings and determinations in connection with the approval recommendation of the Development Agreement (PA07-0220): A. Pursuant to California Environmental Quality Act ("CEQA"), City staff prepared an Initial Study of the potential environmental effects of the approval of the Development Agreement 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. The public comment period commenced on August 4, 2007, and expired on September 3, 2007. Copies of the documents have been available for public review and inspection at the offices of the Department of Planning, located at City Hall, 43200 Business Park Drive, Temecula, California 92590. C. Three written comments were received prior to the public hearing and a response to all the comments made therein was prepared, submitted to the Planning Commission and incorporated into the administrative record of the proceedings. G:\Planning\2007\PA07-0220 PHS Development Agreement\Planning\DRAFT PC Reso DA.doc 2 D. The Planning Commission has reviewed the Mitigated Negative Declaration and all comments received regarding the Mitigated Negative Declaration prior to and at the date public hearing, and based on the whole record before it finds that: (1) the Mitigated 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 Mitigated Negative Declaration reflects the independent judgment and analysis of the Planning Commission. E. Based on the findings set forth in this Resolution, the Planning Commission hereby recommends that the City Council adopt the Mitigated Negative Declaration prepared for this project. Section 4. Recommendation. The Planning Commission of the City of Temecula recommends that the City Council approve Planning Application No. PA07- 0220, a Development Agreement between Temecula Properties, LLC and the City of Temecula to authorize the development of an approximate 84-acre site. G:\Planning\2007\PA07-0220 PHS Development Agreement\Planning\DRAFT PC Reso DA.doc 3 Section 5. PASSED, APPROVED AND ADOPTED by the City of Temecula Planning Commission this 5th day of September 2007. Dennis Chiniaeff, Chairman ATTEST: Debbie Ubnoske, Secretary [SEAL] STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss CITY OF TEMECULA ) I, Debbie Ubnoske, Secretary of the Temecula Planning Commission, do hereby certify that the forgoing PC Resolution No. 07-_ was duly and regularly adopted by the Planning Commission of the City of Temecula at a regular meeting thereof held on the 5th day of September 2007, by the following vote: AYES: PLANNING COMMISSIONERS: NOES: PLANNING COMMISSIONERS: ABSENT: PLANNING COMMISSIONERS: ABSTAIN: PLANNING COMMISSIONERS: Debbie Ubnoske, Secretary G:\Planning\2007\PA07-0220 PHS Development Agreement\Planning\DRAFT PC Reso DA.doc 4 EXHIBIT A DRAFT CITY COUNCIL RESOLUTION 07-_ G:\Planning\2007\PA07~0220 PHS Development Agreement\Planning\DRAFT PC Reso DA.doc 5 RESOLUTION NO. 07- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA APPROVING PLANNING APPLICATION NO. PA07-0220, A DEVELOPMENT AGREEMENT BETWEEN TEMECULA PROPERTIES, LLC AND THE CITY OF TEMECULA TO AUTHORIZE THE DEVELOPMENT OF AN APPROXIMATE 84-ACRE SITE GENERALLY LOCATED AT THE NORTHWEST CORNER OF WINCHESTER ROAD AND DENDY PARKWAY IN THE CITY OF TEMECULA (APN 909-370-018 AND 909-370- 032) THE CITY COUNCIL OF THE CITY OF TEMECULA DOES HEREBY RESOLVE AS FOllOWS: Section 1. Procedural Findinas. The City Council of the City of Temecula finds and determines that: A. On September 5, 2007, the Planning Commission recommended that the City Council approve Planning Application No. PA07-0220. B. The Amendment 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 the Application and environmental review on September 5, 2007, at a duly noticed public hearing as prescribed by law, at which time the City staff and interested persons had an opportunity to and did testify either in support or in opposition to this matter. D. At the conclusion of the Commission hearing and after due consideration of the testimony, the Commission recommended that the City Council approve Planning Application No. PA07-0220 subject to and based upon the findings set forth hereunder. E. On on this Resolution. 2007, the City Council held a duly noticed public hearing F. At the conclusion of the City Council hearing and after due consideration of the testimony, the City Council adopted a Mitigated Negative Declaration for the project and approved the recommended Development Agreement under Planning Application No. PA07-0220 subject to and based upon the findings set forth hereunder and the attached Exhibit A. G. All legal preconditions to the adoption of this Resolution have occurred. Section 2. Further Findinas. The City Council, in approving the Development . Agreement hereby finds, determines and declares that: To recommend approval of the Development Agreement, the following findings must be made: A. The Development Agreement is consistent with the objectives, policies, general land uses, and programs specified in the City of Temecula General Plan in that the Development Agreement makes reasonable provision for the use of certain real property for industrial, commercial and residential development. B. The Development Agreement complies with the goals and objectives of the Circulation Element of the General Plan, and the traffic impacts of the development will be less than significant or substantially mitigated by the mitigation measures and Conditions of Approval imposed. C. The project subject to the Development Agreement is compatible with the uses authorized in, and the regulations prescribed for the zoning district in which the property subject to the Development Agreement is located, and that this Development Agreement is consistent with good planning practices by providing for the opportunity to develop the property consistent with the General Plan. D. The Development Agreement is in conformity with the public convenience, general welfare, and good land use practice because it makes reasonable provision for a balance of land uses compatible with the remainder of the City. E. The Development Agreement will not be detrimental to the health, safety, or general welfare of the community because it provides adequate assurances for the protection thereof. F. The benefits that will accrue to the people of the City of Temecula from this legislation and this Development Agreement are expansion of an important local employer that could bring additional employment opportunities to local residents. G. The potential significant impacts to the environment from the project will be mitigated to a less than significant level based upon the identified mitigation measures. Section 3. Environmental Findinas. The City Council hereby makes the following environmental findings and determinations in connection with the recommended approval of the proposed General Plan Amendment: A. Pursuant to California Environmental Quality Act ("CEQA"), City staff prepared an Initial Study of the potential environmental effects of the approval of the General Plan Amendment 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 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. The public comment period commenced on August 4, 2007, and expired on September 3, 2007. Copies of the documents have been available for public review and inspection at the offices of the Department of Planning, City Hall, 43200 Business Park Drive, Temecula, California 92590. C. Three written comments were received prior to the public hearing and a response to all the comments made therein was prepared, submitted to the Planning Commission and incorporated into the administrative record of the proceedings. D. The City Council reviewed the Mitigated Negative Declaration and all comments received regarding the Mitigated Negative Declaration prior to and at the 2007 City Council meeting and based on the whole record before it finds that: (1) the Mitigated 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 Mitigated Negative Declaration reflects the independent judgment and analysis of the City Council. E. Based on the findings set forth in this Resolution, the City Council adopts the Mitigated Negative Declaration prepared for this project. F. Effective Date. This Resolution shall become effective on 2007. PASSED, APPROVED, AND ADOPTED by the City Council of the City of Temecula this day of Chuck Washington, Mayor ATTEST: Susan W. Jones, MMC City Clerk [SEAL] STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss CITY OF TEMECULA ) I, Susan W. Jones, MMC, City Clerk of the City of Temecula, do hereby certify that the foregoing Resolution No. was duly and regularly adopted by the City Council of the City of Temecula at a meeting thereof held on the day of , by the following vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: ABSTAIN: COUNCIL MEMBERS: Susan W. Jones, MMC City Clerk EXHIBIT A 'DEVELOPMENT AGREEMENT G:\Planning\2007\PA07-0220 PHS Development Agreement\Planning\DRAFT PC Reso DA.doc 6 DEVELOPMENT AGREEMENT WILL BE PROVIDED UNDER SEPARATE COVER ATTACHMENT NO.4 PC RESOLUTION NO. 07-_ (GENERAL PLAN AMENDMENT) G:IPlanning\2006IPA06-0370 PHS Tentative Map (TTM35181)IPlanningIPCIPC STAFF REPORT.doc 16 PC RESOLUTION NO. 07- A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF TEMECULA RECOMMENDING THAT THE CITY COUNCIL APPROVE A RESOLUTION ENTITLED "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA APPROVING PLANNING APPLICATION NO. PA07-0048, A GENERAL PLAN AMENDMENT TO TABLE LU-5 OF LAND USE ELEMENT TO DESIGNATE AN 84 ACRE SITE LOCATED AT THE NORTHWEST CORNER OF DENDY PARKWAY AND WINCHESTER ROAD AS A FUTURE SPECIFIC PLAN AREA (APN 909-370-018 AND 909-370-032) Section 1. Procedural Findinas. The Planning Commission of the City of Temecula does hereby find, determine and declare that: A. On February 8, 2007, The Garrett Group filed Planning Application No. PA07-0048, (General Plan Amendment), in a manner in accord with the City of Temecula General Plan and Development Code. B. .On September 5,2007, the Planning Commission recommended that the City Council approve Planning Application No. PA07-0048. C. The Amendment was processed including, but not limited to a public notice, in the time and manner prescribed by State and local law. D. The Planning Commission, at a regular meeting, considered the Application and environmental review on September 5, 2007, 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. E. At the conclusion of the Commission hearing and after due consideration of the testimony, the Commission recommended that the City Council approve Planning Application No. PA07-0048 subject to and based upon the findings set forth hereunder. F. All legal preconditions to the adoption of this Resolution have occurred. Section 2. Further Findinas. The Planning Commission, in recommending that the City Council approve the Application hereby finds, determines and declares that: To recommend approval of the General Plan Amendment, the following findings must be made: A. The amendment is compatible with the health, safety and welfare of the community. G:\Planning\2007\PA07~0048 Temecula 84 GPA\Planning\DRAFT PC Reso GPA.doc 1 The proposed amendment to add a future Specific Plan area to Table LU-5 of/he Land Use Element meets the goals and policies of the General Plan, and is consistent with the anticipated impacts of the Final Environmental Impact Report (EIR) for the General Plan and the guidelines of the Development Code. Any future proposals for the Specific Plan area will be subject to the City's General Plan, Development Code and Design Guidelines to ensure the public health, safety and welfare of the community is maintained as new development occurs. B. The amendment is compatible with existing and surrounding uses. The proposed amendment to add a future Specific Plan area to Table LU-5 of/he Land Use Element is compatible with the existing and surrounding uses because any future proposals for the 84 acre site will be consistent with the goals and policies of the General Plan and the content and processing requirements contained in the Development Code. Therefore, the proposed amendment will be compatible with existing and future uses in the surrounding area. C. The amendment will not have an adverse effect on the community and are consistent with the goals and policies of the adopted General Plan. The proposed amendment will not conflict with the existing zoning or designated land uses throughout the City. The proposed amendment will result in compatible future development, which meets the recommended land use and circulation pattern, maximum density and intensity of development, a desired mix of uses and other factors consistent with the goals and policies of the General Plan. Section 3. Environmental Compliance. The Planning Commission hereby makes the following environmental findings and determinations in connection with the approval of the General Plan Amendment, (PA07-0048): A. Pursuant to California Environmental Quality Act ("CEQA"), City staff prepared an Initial Study of the potential environmental effects of the approval of the General Plan Amendment 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. The public comment period commenced on August 4, 2007, and expired on September 3, 2007. Copies of the documents have been available for public review and inspection at the offices of the Department of Planning, located at City Hall, 43200 Business Park Drive, Temecula, California 92590. C. Three written comments were received prior to the public hearing and a response to all the comments made therein was prepared, submitted to the Planning Commission and incorporated into the administrative record of the proceedings. G:\Planning\2007\PA07-0048 Temecula 84 GPA\Planning\DRAFT PC Reso GPA.doc 2 D. The Planning Commission has reviewed the Mitigated Negative Declaration and all comments received regarding the Mitigated Negative Declaration prior to and at the date public hearing, and based on the whole record before it finds that: (1) the Mitigated 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 Mitigated Negative Declaration reflects the independent judgment and analysis of the Planning Commission. E. Based on the findings set forth in this Resolution, the Planning Commission hereby recommends that the City Council adopt the Mitigated Negative Declaration prepared for this project. Section 4. Recommendation. The Planning Commission of the City of Temecula recommends that the City Council approve Planning Application No. PA07- 0048, a General Plan Amendment to Table LU-5 to designate an 84 acre site as a future Specific Plan area. G:\Planning\2007\PA07M0048 Temecula 84 GPA\Planning\DRAFT PC Reso GPA.doc 3 Section 5. PASSED, APPROVED AND ADOPTED by the City of Temecula Planning Commission this 5th day of September 2007. Dennis Chiniaeff, Chairman ATTEST: Debbie Ubnoske, Secretary [SEAL] STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss CITY OF TEMECULA ) I, Debbie Ubnoske, Secretary of the Temecula Planning Commission, do hereby certify that the forgoing PC Resolution No. 07-_ was duly and regularly adopted by the Planning Commission of the City of Temecula at a regular meeting thereof held on the 5th day of September 2007, by the following vote: AYES: PLANNING COMMISSIONERS: NOES: PLANNING COMMISSIONERS: ABSENT: PLANNING COMMISSIONERS: ABSTAIN: PLANNING COMMISSIONERS: DebbieUbnoske, Secretary G:\Plannjng\2007\PA07~0048 Temecula 84 GPA\Planning\DRAFT PC Reso GPA.doc 4 EXHIBIT A DRAFT CITY COUNCIL RESOLUTION 07-_ G:\Planning\2007\PA07.0048 Temecula 84 GPA\Planning\DRAFT PC Reso GPA.doc 5 RESOLUTION NO. 07- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA APPROVING PLANNING APPLICATION NO. PA07-0048, A GENERAL PLAN AMENDMENT TO TABLE LU-5 OF LAND USE ELEMENT TO DESIGNATE AN 84-ACRE SITE LOCATED AT THE NORTHWEST CORNER OF DENDY PARKWAY AND WINCHESTER ROAD AS A FUTURE SPECIFIC PLAN AREA (APN 909- 370-018 AND 909-370-032) THE CITY COUNCIL OF THE CITY OF TEMECULA DOES HEREBY RESOLVE AS FOLLOWS: Section 1. Procedural Findinas. The City Council of the City of Temecula finds and determines that: A. On September 5, 2007, the Planning Commission recommended that the City Council approve Planning Application No. PA07-0048. B. The Amendment 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 the Application and environmental review on September 5, 2007, at a duly noticed public hearing as prescribed by law, at which time the City staff and interested persons had an opportunity to and did testify either in support or in opposition to this matter. D. At the conclusion of the Commission hearing and after due consideration of the testimony, the Commission recommended that the City Council approve Planning Application No. PA07-0048 subject to and based upon the findings set forth hereunder. E. On this Resolution. , the City Council held a duly noticed public hearing on F. At the conclusion of the City Council hearing and after due consideration of the testimony, the City Council adopted a Mitigated Negative Declaration for the project and approved the recommended General Plan Amendment under Planning Application No. PA07-0048 subject to and based upon the findings set forth hereunder and the attached Exhibit A. G. All legal preconditions to the adoption of this Resolution nave occurred. Section 2. Further Findinas. The City Council, in approving the General Plan Amendment hereby finds, determines and declares that: A. The amendment is compatible with the health, safety and welfare of the community; The proposed amendment to add a future Specific Plan area to Table LU-5 of the Land Use Element meets the goals and policies of the General Plan, and is consistent with the anticipated impacts of the Final Environmental Impact Report (EIR) for the General Plan and the guidelines of the Development Code. Any future proposals for the Specific Plan area will be subject to the City's General Plan, Development Code and Design Guidelines to ensure the public health, safety and welfare of the community is maintained as new development occurs. B. The amendment is compatible with existing and surrounding uses; The proposed amendment to add a future Specific Plan area to Table LU-5 of the Land Use Element is compatible with the existing and surrounding uses because any future proposals for the 84-acre site will be consistent with the goals and policies of the General Plan and the content and processing requirements contained in the Development Code. Therefore, the proposed amendment will be compatible with existing and future uses in the surrounding area. C. The amendment will not have an adverse effect on the community and are consistent with the goals and policies of the adopted General Plan; The proposed amendment will not conflict with the existing zoning or designated land uses throughout the City. The proposed amendment will result in compatible future development, which will meet the recommended land use and circulation pattern, maximum density and intensity of development, a desired mix of uses and other factors consistent with the goals and policies of the General Plan. Section 3. Environmental Findinas. The City Council hereby makes the following environmental findings and determinations in connection with the recommended approval of the proposed General Plan Amendment (the Project): A. Pursuant to California Environmental Quality Act ("CEQA"), City staff prepared an Initial Study of the potential environmental effects of the approval of the General Plan Amendment as described in the Initial Study. 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. The public comment period commenced on August 4, 2007, and expired on September 3, 2007. Copies of the documents have been available for public review and inspection at the offices of the Department of Planning, located at City Hall, 43200 Business Park Drive, Temecula, California 92590. C. Three written comments were received prior to the public hearing and a response to all the comments made therein was prepared, submitted to the Planning Commission and incorporated into the administrative record of the proceedings. D. The City Council reviewed the Mitigated Negative Declaration and all comments received regarding the Mitigated Negative Declaration prior to and at the , City Council meeting and based on the whole record before it finds that: (1) the Mitigated 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 Mitigated Negative Declaration reflects the independent judgment and analysis of the City Council. E. Based on the findings set forth in this Resolution, the City Council adopts the Mitigated Negative Declaration prepared for this project. Section 4. Effective Date. This Resolution shall become effective on PASSED, APPROVED, AND ADOPTED by the City Council of the City of Temecula this day of Chuck Washington, 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. 07- was duly and regularly adopted by the City Council of the City of Temecula at a meeting thereof held on the day of , by the following vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: ABSTAIN: COUNCIL MEMBERS: Susan W. Jones, MMC City Clerk EXHIBIT A PROPOSED GENERAL PLAN AMENDMENT G:\Planning\2007\PA07-0048 Temecula 84 GPA\Planning\DRAFT PC Reso GPA.doc 6 ... \ (Sj '" ~ .. ... :t fr - '" i'" .\ll - .. 0- 0..'" 0 <a:;) :J .- ...'0 \ .. '" c: '" (j') ....J C) '&. '" :g 0:. '<Jl 0 <g "" 0- '(3 '" ~ iJi .,0\ '" 3 .!:::- (f) . 6- (l:i.. ~ ~ ~]iO: o~.g ~ c-='':'.= l) <Jl'Oo .. '" '" '" '$ o .- 0.- 'O-"(j') 0 _.~ ~ c: (j)8o 0 :!: '" .... O-So; .e- ~ S '" ~ :z::.o2 0-00- .. g-O'~ 0 en ,S Q) ro -g ,I;;: , :'C""G6- 0-",,,, <g .-~ \.-0 :!:<Jl"" 0;1],3 '" :> '" o ... <Jl .- (\) ? ~~-o 2O~ 0_'- o:aS ~~ ...0- c: $"" 0 <Jl~ .., '" '" ~ f;o 5 .S '0 $~ ~ CS '" 0: ., 0:. .!a g. ~ ~ <> .. '" 0- iJi <Il .. '" ... ... a 3 :l :> u. u.. i'? .- ~ CS ....J J $)' 5~ ATTACHMENT NO.5 PC RESOLUTION NO. 07-_ (TENTATIVE TRACT MAP) G:IPlanningI2006IPA06-0370 PHS Tentative Map (TTM35181)IPlanningIPCIPC STAFF REPORT.doc 17 PC RESOLUTION NO. 07- A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF TEMECULA APPROVING PLANNING APPLICATION NO. PA06-0370, A TENTATIVE TRACT MAP (TTM 35181) TO SUBDIVIDE 84 ACRES INTO FIVE PARCELS, FOUR DEVELOPABLE LOTS AND ONE SLOPE AND EASEMENT PARCEL, LOCATED AT THE NORTHWEST CORNER OF DENDY PARKWAY AND WINCHESTER ROAD (APN 909-370-018 AND 909-370- 032) Section 1. Procedural Findinas. The Planning Commission of the City of Temecula does hereby find, determine and declare that: A. On December 12, 2006, The Garrett Group filed Planning Application No. PA06-0370, (Tentative Tract Map), in a manner in accord with the City of Temecula General Plan and Development Code. B. The Application 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 the Application and environmental review on September 5, 2007, at a duly noticed public hearing as prescribed by law, at which time the City staff and interested persons had an opportunity to and did testify either in support or in opposition to this matter. D. At the conclusion of the Commission hearing and after due consideration of the testimony, the Commission approved Planning Application No. PA06-0370 subject to and based upon the findings set forth hereunder. E. All legal preconditions to the adoption of this Resolution have occurred. Section 2. Further Findinqs. The Planning Commission, in approving the Application hereby finds, determines and declares that: Section 16.09.140 (Tentative Maol A. The proposed subdivision and the design and improvements of the subdivision are consistent with the Development Code, General Plan, and the City of Temecula Municipal Code; . Tentative Tract Map No. 35181 is consistent with the General Plan, the Subdivision Ordinance, the Development Code, and Municipal Code because the project has been designed in a manner that is consistent with the policies and standards in the General Plan, Subdivision Ordinance, Development Code, and Municipal Code. G:\Planning\2006\PA06-0370 PHS Tentative Map (TTM35181)\Planning\PC\DRAFT PC Reso TTM.doc 1 B. The Tentative Map does not propose to divide land which is subject to a contract entered into pursuant to the California Land Conservation Act of 1965, or the land is subject to a Land Conservation Act contract but the resulting parcels following division of the land will not be too small to sustain agricultural use; The subject parcels do not propose to divide land which is subject to a contract entered into pursuant to the California Land Conservation Act of 1965. The suf?ject property has not been designated for conservation or agricultural land and is not subject to the California Land Conservation Act of 1965. C. The site is physically suitable for the type and proposed density of development proposed by the Tentative Map; The site is physically suitable for the proposed industrial development because the proposed use is consistent with the General Plan and Development Code. The proposed Tentative Tract Map (TTM 35181) meets the minimum lot size requirements contained within the Development Code, and is consistent with all of the requirements found within City of Temecula General Plan and the City of Temecula Subdivision Ordinance. The subdivision (TTM 35181) is therefore consistent with the Light Industrial zone. D. The design of the subdivision and the proposed improvements, with Conditions of Approval are not likely to cause significant environmental damage or substantiplly and avoidably injure fish or wildlife or their habitat; The proposed project site does contain sensitive habitat. The project impacts will be mitigated to a level of insignificance based upon the identified mitigation measures and the Conditions of Approval and will not therefore cause significant environmental damage or substantially and avoidably injure fish or wildlife in their habitat. E. The design of the subdivision and the type of improvements are not likely to cause serious public health problems; The project, as conditioned by the Fire Prevention Bureau, the Public Works Department, and the Building and Safety Department, will comply with the applicable improvement requirements designed to prevent serious public health problems. Furthermore; provisions are made in the General Plan and the Development Code to ensure that the public health, safety and welfare are safeguarded. The project is consistent with these documents. F. The design of the subdivision provides for future passive or natural heating or cooling opportunities in the subdivision to the extent feasible; Prior to any issuance of building permits for the subject subdivision, and prior to any construction, the applicant will be required to submit building plans to the City of Temecula Building Department. These plans will be required to comply with all applicable Uniform Building Codes, which also include requirements for G:\Planning\2006\PA06-0370 PHS Tentative Map (TTM35181)\Planning\PC\DRAFT PC Reso TIM.doc 2 energy conservation. Therefore, the construction plans will comply with all applicable building codes and State energy guidelines. G. The design of the subdivision and the type of improvements will not conflict with easements acquired by the public at large for access through or use of property within the proposed subdivision, or the design of the alternate easements which are substantially equivalent to those previously acquired by the public will be provided; The required right-of-way easements, including the future Western Bypass and Cherry Street alignments, are included on the Tentative Tract Map (TTM 35181). The City has reviewed these easements and the design of alternate easements, and determined the type of improvements will not conflict with the easements acquired by the public at large for access through or use of properly within the proposed subdivision. H. The subdivision is consistent with the City's parkland dedications requirements (Quimby); The subdivision is consistent with the dedication requirement. Section 3. Environmental ComDliance. The Planning Commission hereby makes the following environmental findings and determinations in connection with the approval of the Tentative Tract Map No. 35181, (PA06-0370): A. Pursuant to California Environmental Quality Act ("CEQA"), City staff prepared an Initial Study of the potential environmental effects of the approval of the Tentative Tract Map (TTM 35181) 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. The public comment period commenced on August 4, 2007, and expired on September 3, 2007. Copies of the documents have been available for public review and inspection at the offices of the Department of Planning, located at City Hall, 43200 Business Park Drive, Temecula, California 92590. . C. Three written comments were received prior to the public hearing and a response to all the comments made therein was prepared, submitted to the Planning Commission and incorporated into the administrative record of the proceedings. D. The Planning Commission has reviewed the Mitigated Negative Declaration and all comments received regarding the Mitigated Negative Declaration prior to and at the date public hearing, and based on the whole record before it finds that: (1) the Mitigated Negative Declaration was prepared in compliance with CEQA; (2) there is no substantial evidence that the Project will have a significant effect on the G:\Planning\2006\PA06-0370 PHS Tentative Map (TTM35181)\Planning\PC\DRAFT PC Reso TTM.doc 3 environment; and (3) the Mitigated Negative Declaration reflects the independent judgment and analysis of the Planning Commission. E. Based on the findings set forth in this Resolution, the Planning Commission hereby adopts the Mitigated Negative Declaration prepared for this project. Section 4. Conditions.. The Planning Commission of the City of Temecula approves Planning Application No. PA06-0370, a Tentative Tract Map (TTM 35181) to subdivide 84 acres into five lots, subject to the Conditions of Approval set forth on Exhibit A, attached hereto, and incorporated herein by this reference. G:\Planning\2006\PA06-0370 PHS Tentative Map (TTM35181)\Planning\PC\DRAFT PC Reso TTM.doc 4 Section 5. PASSED, APPROVED AND ADOPTED by the City of Temecula Planning Commission this 5th day of September 2007. Dennis Chiniaeff, Chairman ATTEST: Debbie Ubnoske, Secretary [SEAL] STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss CITY OF TEMECULA ) I, Debbie Ubnoske, Secretary of the Temecula Planning Commission, do hereby certify that the forgoing PC Resolution No. 07-_ was duly and regularly adopted by the Planning Commission of the City of Temecula at a regular meeting thereof held On the 5th day of September 2007, by the following vote: AYES: PLANNING COMMISSIONERS: NOES: PLANNING COMMISSIONERS: ABSENT: PLANNING COMMISSIONERS: ABSTAIN: PLANNING COMMISSIONERS: Debbie Ubnoske, Secretary G:\Planning\2006\PA06-0370 PHS Tentative Map (TTM35181)\Planning\PC\DRAFT PC Reso TTM:doc 5 EXHIBIT A DRAFT CONDITIONS OF APPROVAL G:\Planning\2006\PA06-0370 PHS Tentative Map (TTM35181)\Planning\paDRAFT PC Reso TIM.doc 6 EXHIBIT A CITY OF TEMECULA DRAFT CONDITIONS OF APPROVAL Planning Application No.: PA06-0370 Project Description: A Tentative Tract Map (TTM 35181) to subdivide 84 gross acres into five parcels, four developable lots and one easement parcel for slope and drainage purposes. The project site is located at the northwest corner of Dendy Parkway and Winchester Road Assessor's Parcel No.: 909-370-018 and 909-370-032 MSHCP Category: DIF Category: Per Development Agreement Per Development Agreement TUMF Category: Per Development Agreement Approval Date: September 5, 2007 Expiration Date: September 5,2010 WITHIN 48 HOURS OF THE APPROVAL OF THIS PROJECT Planning Department 1. The applicant/developer shall deliver to the Planning Department a cashier's check or money order made payable to the County Clerk in the amount of One Thousand Eight Hundred Sixty-Four Dollars ($1,864.00) which includes the One Thousand Eight Hundred Dollar ($1 ,800.00) fee, required by Fish and Game Code Section 711.4(d)(3) plus the Sixty- Four Dollar ($64.00) County administrative fee, to enable the City to file the Notice of Determination for the Mitigated Negative Declaration required under Public Resources Code Section 21152 and California Code of Regulations Section 15075. If within said 48-hour periDd the applicant/developer has not delivered to the Planning Department the check as required above, the approval for the project granted shall be void by reason of failure of condition [Fish and Game Code Section 711.4(c)]. G:IPlanningI2006IPA06-0370 PHS Tentative Map (TTM35181)'PlanningIPCIDraft COA PA06-0370.doc 1 GENERAL REQUIREMENTS G:\Planning\2006\PA06-0370 PHS Tentative Map (TTM35181)\Planning\PC\Draft COA PA06-0370.doc 2 Planning Department 2. The applicant shall sign both copies of the final Conditions of Approval that will be provided by the Planning Department staff, and return one signed set to the Planning Department for their files. 3. The tentative subdivision shall comply with the State of California Subdivision Map Act and to all the requirements of Ordinance No. 460, unless modified by the conditions listed below. A time extension may be approved in accordance with the State Map Act and City Ordinance, upon written request, if made 60 days prior to the expiration date. 4. 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. 5. The approval granted by this Resolution shall become effective upon the Effective Date of the Development Agreement, as the term Effective Date is defined in the Development Agreement adopted concurrently with this Resolution. 6. If Subdivision phasing is proposed, a ohasina olan shall be submitted to and approved by the Planning Director. 7. The project and all subsequent projects within this site shall be subject to the Garrett/PHS Development Agreement (PA07-0220). 8. All lots created by TTM35181 shall be developed as identified in the Development Agreement (PA07-0220). 9. The project and all subsequent projects within this site shall comply with all mitigation measures contained in the approved Mitigation Monitoring Program. 10. A Specific Plan consistent with Development Agreement (PA07-0220) shall be submitted prior to the approval of any development plans for Lots 1, 2, or 3 created by TTM 35181. Public Works Department 11. It is understood that the Developer correctly shows on the tentative map all existing and proposed easements, traveled ways, improvement constraints and drainage courses, and their omission may require the project to be resubmitted for further review and revision. G:\Planning\2006\PA06-0370 PHS Tentative Map (TTM35181 )\Plannlng\PC\Draft COA PA06-0370.doc 3 12. A Grading Permit for either rough or precise grading shall be obtained from the Department of Public Works prior to commencement of any construction outside of the City-maintained road right-of-way. 13. An Encroachment Permit shall be obtained from the Department of Public Works prior to commencement of any construction within an existing or proposed City right-of-way. 14. All improvement plans, grading plans, landscape and irrigation 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. 15. The provisions for the design, improvement, lot configuration, public facility financing and the following conditions of approval are predicated on the approval and full execution of a Development Agreement between Temecula Properties, LLC and the City on or about September 25, 2007. Fire Prevention Bureau 16. 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 submittal. 17. 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 4,000 GPM at 20 PSI residual operating pressure for a 4 hour duration. The Fire Flow as given above has taken into account all information as provided (CFC 903.2, Appendix III-A). 18. 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 off-site (6" x 4" x 2-2 1/2" outlets) on a looped system shall be located on fire access roads and adjacent to public streets. Hydrants shall be spaced at 350 feet apart, at each intersection and shall be located no more than 210 feet from any point on the street or Fire Department access road(s) frontage to an 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). 19. 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). Community Service Department 20. The Applicant shall comply with the Public Art Ordinance. 21. 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. G:\Planning\2006\PA06-0370 PHS Tentative Map (TTM35181)\Planning\PC\Draft COA PA06-0370.doc 4 PRIOR TO RECORDATION OF THE FINAL MAP G:\Planning\2006\PA06-0370 PHS Tentative Map (TTM35181)\Plannlng\PC\Draft COA PA06-0370.doc 5 Planning Department 22. The following shall be submitted to and approved by the Planning Division: a. A copy of the Final Map. b. A copy of the Environmental Constraint Sheet (ECS) with the following notes: i. This property is located within thirty (30) miles of Mount Palomar Observatory. All proposed outdoor lighting systems shall comply with the California Institute of Technology, Palomar Observatory recommendations, Ordinance No. 655. ii. A Mitigated Negative Declaration was prepared for this project and is on file at the City of Temecula Planning Department. Iii. This project is within the Alquist-Priolo Special Studies Zone. iv. This project contains sensitive cultural resources. 23. The %-acre of cultural site CA-RIV 237 located in the northeast corner of Planning Application 06-0370 shall be preserved in Open Space and recorded with the County Recorder of Riverside County as a conservation easement for preservation purposed in perpetuity. The %-acre of CA-RIV 237 shall not be subject to development, archeological testing or ground-disturbing activities. 24. The applicant shall comply with the provisions of the Development Agreement (PA07-0220) prior to Final Map recordation. Public Works Department 25. As deemed necessary by the Department of Public Works, the Developer shall receive written clearance from the following agencies: a. San Diego Regional Water Quality Control Board b. Rancho California Water District c. Riverside County Flood Control and Water Conservation District d. City of Temecula Fire Prevention Bureau e. Planning Department f. Department of Public Works g. Riverside County Health Department h. Time Warner i. Community Services District j. Verizon k. Southern California Edison Company I. Southern California Gas Company m. Fish and Game n. Army Corps of Engineers G:\Planning\2006\PA06-0370 PHS Tentative Map (TTM35181 )\Planning\PC\Draft COA PA06-0370.doc 6 26. The Developer shall design and guarantee construction of the following public improvements to City of Temecula General Plan standards unless otherwise noted. Plans shall be reviewed and approved by the Department of Public Works: a. Winchester Road (Major Arterial Standards - 100' R/W) between Dendy Parkway and the southern project boundary plus transition to include dedication of half-width street right-of-way, installation of half-width street improvements, paving, curb and gutter, sidewalk, painted median, street lights, drainage facilities, signing and striping and utilities (including but not limited to water and sewer). b. Dendy Parkway (Major Arterial Standards - 100' R/W) between Winchester Road and the eastern project boundary plus transition to include dedication of half-width street right-of-way, installation of half-width street improvements, paving, curb and gutter, sidewalk, painted median, street lights, drainage facilities, signing and striping and utilities (including but not limited to water and sewer). c. Remington Avenue (Industrial Collector Highway Standards - 78' R/W) to include dedication of full width street right-of-way, installation of full width street improvements, curb and gutter, sidewalk, painted median, street lights, drainage facilities, signing and striping, utilities (including but not limited to water and sewer). d. Remington Avenue and Winchester Road intersection to include a stop control on the eastbound leg of Remington Avenue for an all-way stop controlled intersection and a striped 200-foot northbound left turn. pocket. In addition, secure with a cash deposit to include a year 2009 traffic analysis to determine traffic signal warrants and a fair share contribution for the design and installation of a traffic signal. e. Cherry Street (Major Arterial - 100' R/W) i. Dedication of half-width street right-of-way. f. Western Bypass Corridor (Major Arterial-100' R/W) i. Dedication of full-width street right-of-way plus an easement for slope construction, maintenance and drainage purposes. g. All street improvement design shall provide adequate right-of-way and pavement transitions per Caltrans standards for transition to existing street sections. 27. Unless otherwise approved the following minimum criteria shall be observed in the design of the street improvement plans: a. Street centerline grades shall be 0.5% minimum over P.C.C. and 1.00% minimum over A.C. paving. b. Driveways shall conform to the applicable City Standard No. 207 A. c. Street lights shall be installed along the public streets shall be designed in accordance with City Standard No. 800, 801, 802 and 803. d. Concrete sidewalks shall be constructed in accordance with City Standard Nos. 400 and 401. e. Design of street improvements shall extend a minimum of 300 feet beyond the project boundaries to ensure adequate continuity of design with adjoining properties. f. Minimum centerline radii shall be in accordance with City Standard No. 113. g. All street and driveway centerline intersections shall be at 90 degrees. G:\Plannlng\2006\PA06-0370 PHS Tentative Map (TTM35181)\Planning\PCIDraft COA PA06-0370.doc 7 h. All knuckles shall be constructed in accordance with City Standard No. 602. i. All cul-de-sacs shall be constructed in accordance in City Standard No. 600. j. Landscaping shall be limited in the corner cut-off area of all intersections and adjacent to driveways to provide for minimum sight distance and visibility. k. All utility systems including gas, electric, telephone, water, sewer, and cable TV shall be provided underground. Easements shall be provided as required where adequate right-of-way does not existfor installation of the facilities. All utilities shall be designed and constructed in accordance with City Codes and the utility provider. I. All utilities, except electrical lines rated 34kv or greater, shall be installed underground. 28. A construction phase Traffic Control Plan shall be designed by a registered Civil Engineer and reviewed by 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. 29. Relinquish and waive right of access to and from Winchester Road on the Final Map. Specific access openings will be determined through the Development Plan process as stated in the Development Agreement. 30. Relinquish and waive right of access to and from Dendy Parkway on the Final Map. Specific access openings will be determined through the Development Plan process as stated in the Development Agreement. 31. Relinquish and waive right of access to and from Remington Avenue on the Final Map. Specific access openings will be determined through the Development Plan process as stated in the Development Agreement. 32. Relinquish and waive right of access to and from Cherry Street on the Final Map. Specific access openings will be determined through the Development Plan process as stated in the Development Agreement. 33. Relinquish and waive right of access to and from the Western Bypass Corridor on the Final Map. Specific access openings will be determined through the Development Plan process as stated in the Development Agreement. 34. Corner property line cut off for vehicular sight distance and installation of pedestrian facilities shall be provided at all street intersections in accordance with Riverside County Standard No. 805. 35. All easements and/or right-of-way dedications shall be offered for dedication to the public or other appropriate agency and shall continue in force until the City accepts or abandons such offers. All dedications shall be free from all encumbrances as approved by the Department of Public Works. 36. Pursuant to Section 66493 of the Subdivision Map Act, any subdivision which is part of an existing Assessment District must comply with the requirements of said section. Prior to City Council approval of the Final Map, the Developer shall make an application for reapportionment of any assessments with appropriate regulatory agency. 37. Any delinquent property taxes shall be paid. G:IPlanning\2006IPA06-0370 PHS Tentative Map (TTM35181)\PlanningIPC\Draft COA PA06-0370.doc 8 38. An Environmental Constraints Sheet (ECS) shall be prepared in conjunction with the Final Map to delineate identified environmental concerns and shall be recorded with the map. 39. The Developer shall comply with all constraints which may be shown upon an Environmental Constraint Sheet recorded with any underlying maps related to the subject property. 40. The Developer shall make a good faith effort to acquire the required off-site property interests, and if he or she should fail to do so, the Developer shall, prior to submittal of the Final Map for recordation, enter into an agreement to complete the improvements pursuant to the Subdivision Map Act, Section 66462 and Section 66462.5. Such agreement shall provide for payment by the Developer of all costs incurred by the City to acquire the off-site property interests required in connection with the subdivision. Security of a portion of these costs shall be in the form of a cash deposit in the amount given in an appraisal report obtained by the Developer, at the Developer's cost. The appraiser shall have been approved by the City prior to commencement of the appraisal. 41. The Developer shall notify the City's cable TV Franchises of the Intent to Develop. Conduit shall be installed to cable TV standards at time of street improvements. 42. Private drainage easements for cross-lot drainage shall be required and shall be delineated and noted on the final map. 43. Easements, when required for roadway slopes, landscape easements, drainage facilities, utilities, etc., shall be shown on the final map if they are located within the land division boundary. All offers of dedication and conveyances shall be submitted for review and recorded as directed by the Department of Public Works. On-site drainage facilities located outside of road right-of-way shall be contained within drainage easements and shown on the final map. A note shall be added to the final map stating "drainage easements shall be kept free of buildings and obstructions. " G:\Planning\2006\PA06-0370 PHS Tentative Map (TTM35181 )\Planning\PC\Draft COA PA06-0370.doc 9 PRIOR TO ISSUANCE OF GRADING PERMITS G:IPlanning\2006IPA06-0370 PHS Tentative Map (TTM35181)IPlanningIPCIDraft COA PA06-0370.doc 10 Planning Department 44. A copy of the Rough Grading plans shall be submitted and approved by the Planning Department. 45. The recommendations contained in soils report(s), geotechnical report, and slope stability report shall be implemented. 46. Both Federal Clean Water Sections 404 and 401 permits and a 1602 Streambed Alteration Agreement are required. Copies of all required permits shall be provided to the City prior to the start of construction and comply fully with all of the terms and conditions of those permits and agreement. 47. Impacts to jurisdictional areas will be mitigated at least a 1:1 ratio through off-site creation or purchase of wetland credits within an approved wetland mitigation bank. 48. Impacts to upland habitats and associated species will be addressed through participation in the MSHCP and payment of the MSHCP Local Development Mitigation fees. The project is located within the Riverside County Stephens' kangaroo rat HCP Fee Assessment Area fee area. 49. A pre-construction burrowing owl survey is required 30 days prior to commencement of construction. If any burrowing owl is found on site, the CDFG shall be consulted, and a passive relocation effort shall be undertaken outside of the nesting season. No disturbance of active nests will occur. 50. A qualified biologist shall determine if any active raptor nests occur within the limits of disturbance prior to commencement of grubbing, clearing, or grading activities. 51. No brushing, clearing, or grading shall occur within 500 feet of occupied tree-nesting raptor habitat during the raptor breeding season (typically December to July). 52. In order to ensure MBT A compliance, clearing of native vegetation shall occur outside the breeding season of most avian species (February 1 through September 15) unless a pre- construction nesting bird survey determines that no nesting birds are present. The City of Temecula would need to approve activities after concurrence is received from the wildlife agencies. 53. 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." G:\Planning\2006IPA06-0370 PHS Tentative Map (TTM35181)\PlannlngIPCIDraft COA PA06-0370.doc 11 54. The project proponent shall enter into a Treatment Agreement with the Pechanga Band of Luiseno Indians. This agreement will address the treatment and disposition of cultural resources and human remains that may be uncovered during construction as well as provisions for tribal monitors. 55. Tribal monitors from the Pechanga Band of Luiseno Indians shall be allowed to monitor all grading, excavation and ground-breaking activities, including further surveys, to be compensated by the project proponent. The Pechanga Tribal monitors shall have the authority to temporarily stop and redirect grading activities to evaluate the significance of any archaeological resources discovered on the property, in conjunction with the archeologist and the Lead Agency. 56. A qualified archaeologist monitor shall be present during all earthmoving activities. The monitor shall be empowered to temporarily halt or redirect construction work in the vicinity of the find until it can be evaluated by the project archaeologist in conjunction with the Pechanga Tribe. In the event of a new find, further testing, excavation, and/or reporting may be required. 57. 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. 58. If human remains are encountered, all activity shall cease and the County Coroner must be notified immediately. State Health and Safety Code Section 7050.5 state that no further disturbance shall occur until the County Coroner has made a determination of the origin and until treatment pursuant to Public Resources Code Section 5097.98 has been decided. The Coroner shall determine if the remains are prehistoric, and shall notify the State Native American Heritage Commission (NAHC) if applicable. Further actions shall be determined pursuant to California Public Resources Code Section 5097.98. 59. The landowner shall agree to relinquish ownership of all cultural resources, including all Luiseno sacred items, burial goods and all archeological artifacts that are found on the project site to the Pechanga Band of Luiseno Indians for proper treatment and disposition. 60. All sacred sites within the project area are to be avoided and preserved. 61. Cultural Resources Sensitivity Training (a 15-minute presentation) should be required for all project personnel. 62. All impacts to the sandstone and fanglomerate members of the Pauba Formation should be monitored full time at the beginning of grading. A trained paleontological monitor shall be present during ground disturbing activities within the project area determined likely to contain paleontological resources. Monitoring will be adjusted to spot checking if initial monitoring shows negative results. 63. Upon encountering any significant fossils, salvage of all fossils in the area will be conducted with additional field staff and in accordance with modern paleontological techniques. 64. Any significant fossils recovered shall be prepared to a reasonable point of identification. Excess sediment or matrix will be removed from the specimens to reduce the bulk and cost G:\Planning\2006\PA06-0370 PHS Tentative Map (TTM35181)\PlanningIPC\Draft COA PA06-0370.doc 12 of storage. Itemized catalogs of all material collected and identified shall be provided to the museum repository along with the specimens. 65. A report documenting the results of the monitoring and any salvage activities and the significance of the fossils shall be prepared. 66. Any significant fossils recovered, along with the itemized inventory of the specimens, shall be deposited in a museum repository for permanent curation and storage. Public Works Department 67. As deemed necessary by 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 e. Riverside County Health Department f. Community Services District g. General Telephone h. Southern California Edison Company i. Southern California Gas Company 68. A Grading Plan shall be prepared by a registered Civil Engineer in accordance with City of Temecula standards and approved by the Department of Public Works prior to commencement of any grading. The plan shall incorporate adequate erosion control measures to protect the site and adjoining properties from damage due to erosion. 69. A Soils Report shall be prepared by a registered Civil or Soils Engineer and submitted to 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, cut and fill slopes and preliminary pavement sections. G:\Planning\2006\PA06-0370 PHS Tentative Map (TTM35181)\PlanningIPC\Draft COA PA06-0370.doc 13 70. A Geotechnical Report shall be prepared by a registered engineer or engineering geologist and submitted to the Department of Public Works with the initial grading plan check. The report shall address special study zones and identify any geotechnical hazards for the site including location of faults, slope stability and potential for liquefaction. The report shall include recommendations to mitigate the impact of ground shaking and liquefaction. a. Based on geologic relationships and observations, the site lacks evidence to support the existence/presence of Holocene faulting (i.e. broken soil horizon or shear planes). The building site area is not traversed by an active fault that would affect the stability of the cut slope proposed or the building structure. A certified engineering geologist shall perform regular field reconnaissance during site earthwork construction. This field mapping is intended to further evaluate site conditions and limit the possibility that adverse conditions will be exposed that could affect site stability. 71. A Drainage Study shall be prepared by a registered Civil Engineer and submitted to the Department of Public Works with the initial grading plan check. The study shall identify storm water runoff quantities expected from the development of this site and upstream of the site. It shall identify all existing or proposed off-site or on-site, public or private, drainage facilities intended to discharge this runoff. Runoff shall be conveyed to an adequate outfall capable of receiving the storm water runoff without damage to public or private property. The study shall include a capacity analysis verifying the adequacy of all facilities. Any upgrading or upsizing of drainage facilities necessary to convey the storm water runoff shall be provided as part of development of this project. The basis for analysis and design shall be a storm with a recurrence interval of one hundred years. 72. Construction-phase pollution prevention controls shall be consistent with the City's Grading, Erosion and Sediment Control Ordinance and associated technical manual, and the City's standard notes for Erosion and Sediment Control. 73. 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. 74. The Developer shall post security and enter into an agreement guaranteeing the grading and erosion control improvements in conformance with applicable City Standards and subject to approval by the Department of Public Works. 75. 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. Provide receipt of paid Area Drainage Plan fees from the County. 76. 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. G:\Planning\2006\PA06-0370 PHS Tentative Map (TTM35181)\Planning\PC\Draft COA PA06-0370.doc 14 77. The Developer shall obtain letters of approval or easements for any off-site work performed on adjoining properties. The letters or easements shall be in a format as directed by the Department of Public Works. Fire Prevention Bureau 78. 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 required fire flow shall be provided. For this project on-site fire hydrants are required (CFC 903.2). 79. Maximum cul-de-sac length shall not exceed 1320 feet. Minimum turning radius on any cul- de-sac shall be forty-five (45) feet (CFC 902.2.2.2.3 and Subdivision Ord 16.03.020). 80. 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). 81. 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 (13) feet six (6) inches (CFC 902.2.2.1). 82. The gradient for a fire apparatus access roads shall not exceed fifteen (15) percent. (CFC 902.2.2.6 Ord. 99-14) 83. Prior to building construction, dead end roadways 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). 84. Prior to building construction, this development shall have two (2) points of access, via all- weather surface roads, as approved by the Fire Prevention Bureau (CFC 902.2.1). G:IPlanning\2006IPA06-0370 PHS Tentative Map (TTM35181 )\Planning\PCIDraft COA PA06-0370.doc 15 PRIOR TO ISSUANCE OF BUILDING PERMITS G:\Planning\2006\PA06-0370 PHS Tentative Map (TTM35181)\Planning\PC\Draft COA PA06-0370.doc 16 Planning Department 85. The applicant shall file and receive approval of a Development Plan for all future development within the subject parcels. 86. Landscape plans shall be prepared for all slopes created by the grading and fill of the site consistent with "Slope Planting Guidelines" and the Development Code, and shall provide erosion control on undeveloped portions of the site. 87. Landscape plans for Parcel 4 shall include the off-site slopes created by the development of Parcel 4 (including but not limited to the slopes proposed within Parcel 2 and the detention basin proposed within Parcel 1). All landscaping shall be installed and maintained in satisfactory condition by the property owner. Public Works Department 88. Final Map 35181 shall be approved and recorded. 89. A Precise Grading Plan shall be submitted to the Department of Public Works for review and approval. The building pad shall be certified by a registered Civil Engineer for location and elevation, and the Soils Engineer shall issue a Final Soils Report addressing compaction and site conditions. 90. Grading of the subject property shall be in accordance with the California Building Code, the approved grading plan, the conditions of the grading permit, City Grading Standards and accepted grading construction practices. The final grading plan shall be in substantial conformance with the approved rough grading plan. 91. A paved emergency vehicle access shall be installed to the satisfaction of the City Engineer and the Fire Marshall. 92. 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. 93. 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. Fire Prevention Bureau 94. The developer shall furnish three copies of the water system plans directly 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. Hydraulic calculations are required for fire flow with the submittal. Once the plans have been approved by the fire department the plans get picked up from the fire department, mylars are made and they are then signed by the local water company, the mylars shall be presented to the Fire Prevention Bureau for final signatures. After all the signatures are obtained a bond copy shall be submitted back to the fire department. Once the fire department received this final copy the permit job card will be released. The permit job card indicates all the inspections that are required by the fire department. The required water system including fire hydrants shall be G:\Plannlng\2006\PA06-0370 PHS Tentative Map (TTM35181 )\Plannlng\PC\Draft COA PA06-0370.doc 17 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). G:\Planning\2006\PA06-0370 PHS Tentative Map (TTM35181)\Planning\PC\Draft COA PA06-0370.doc 18 95. 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 sec 902). 96. Fire sprinkler plans shall be submitted to the Fire Prevention Bureau for approval. Three sets of sprinkler plans must be submitted by the installing contractor to the Fire Prevention Bureau. 97. Fire alarm plans shall be submitted to the Fire Prevention Bureau for approval. Three sets of alarm plans must be submitted by the installing contractor to the Fire Prevention Bureau. 98. Fuel modification plans shall be submitted to the Fire Prevention Bureau for review and approval for all open space areas adjacent to the wildland-vegetation interface (CFC Appendix II-A). 99. A full technical report may be required to be submitted and to the Fire Prevention Bureau. This report shall address, but not be limited to, all fire and life safety measures per 1998 CFC, 1998 CBC, NFPA -13,24,72 and 231-C. Community Service Department 100. The developer shall complete the TCSD application process, submit an approved Edison Streetlight Plan and pay the appropriate energy fees related to the transfer of street lighting into the TCSD maintenance program. 101. The developer shall make arrangements with the franchised hauler to dispose of the construction debris. G:\Planning\2006IPA06-0370 PHS Tentative Map (TTM35181)IPlanningIPCIDraft COA PA06-0370.doc 19 PRIOR TO ISSUANCE OF OCCUPANCY PERMITS G:\Planning\2006\PA06-0370 PHS Tentative Map (TTM35181)\Plannlng\PC\Draft COA PA06-0370.doc 20 Planning Department 102. All of the foregoing conditions shall be complied with prior to occupancy or any use allowed by this permit. Fire Prevention Bureau 103. "Blue Reflective Markers" shall be installed to identify fire hydrant locations (CFC 901.4.3). 104. 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 and industrial buildings shall have a minimum twelve (12) inches numbers with 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). 105. Based on square footage and type of construction, occupancy or use, the developer shall install a fire sprinkler system (CFC Article 10, CBC Chapter 9). 106. 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 prior to installation (CFC Article 10). 107. 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 (CFC 902.4). 108. 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). 109. 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. 110. Buildings housing high-piled combustible stock shall comply with the provisions of Uniform Fire Code Article 81 and all applicable National Fire Protection Association standards. The storage of high-piled combustible stock may require structural design considerations or modifications to the building. Fire protection and life safety features may include some or all of the following: an automatic fire sprinkler system(s) designed for a specific commodity class and storage arrangement, hose stations, alarm systems, smoke vents, draft curtains, Fire Department access doors and Fire department access roads (CFC Article 81). G:IPlanning\2006\PA06-0370 PHS Tentative Map (TTM35181)\PlanningIPC\Draft COA PA06-0370.doc 21 111. Prior to the building final, speculative buildings capable of housing high-piled combustible stock, shall be designed with the following fire protection and life safety features: an automatic fire sprinkler system(s) designed for a specific commodity class and storage arrangement, hose stations, alarm systems, smoke vents, draft curtains, Fire Department access doors and Fire department access roads. Buildings housing high-piled combustible stock shall comply with the provisions California Fire Code Article 81 and all applicable National Fire Protection Association standards (CFC Article 81). 112. 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). 113. Asimple plot plan and a simple floor plan, each as an electronic file of the DWG format must be submitted to the Fire Prevention Bureau. Alternative file formats may be acceptable, contact fire prevention for approval. 114. 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). 115. If there are changes to underlying maps then prior to map recordation the applicant shall submit to the Fire Prevention Bureau a georectified (pursuant to Riverside County standards) digital version of the map including parcel and street centerline information. The electronic file will be provided in a ESRI Arclnfo/ArcView compatible format and projected in a State Plane NAD 83 (California Zone VI) coordinate system. The Bureau must acceptthe data as to completeness, accuracy and format prior to satisfaction of this condition. 116. 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). G:\Plannlng\2006\PA06-0370 PHS Tentative Map (TTM35181 )\Planning\PC\Draft COA PA06-0370.doc 22 OUTSIDE AGENCIES G:\Planning\2006\PA06-0370 PHS Tentative Map (TTM35181)\PlanningIPC\Draft COA PA06-0370.doc 23 117. The applicant shall comply with the recommendations set forth in the Rancho California Water District's transmittal dated December 27,2006, a copy of which is attached. 118. The applicant shall comply with the recommendations set forth in the Eastern Information Center's transmittal dated December 19, 2006, a copy of which is attached. 119. The applicant shall comply with the recommendations set forth in the Pechanga Cultural Resources comment letter dated December 22, 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\PA06-0370 PHS Tentative Map (TTM35181)\PlanningIPC\Draft COA PA06-0370.doc 24 , r5:\ \~ Rancho later Board of Directors Ben R. Drake President Stephen J. Corona Sr. Vice President Ralph H.. Daily Lisa D. Herman John E. Hoagland Michael R. MeMillan William E. PIUllllller Officers: Brian J. Brady General Manager Phillip L. Forbes Assistant General Manager I CbiefFinancial Officer E. P. "BobQLemons DireclorofEngineering Perry R. Louck Director of Planning Jeff D. Annstrong Controller ReUi E. Gar'ilia District Secretary C. Michael Cowett Best Best & Krieger LLP General Counsel .",,- i ~ ,. ., December 27,2006 {, ~,/ ',' ~" ~_h' ",~,-."'.'" tl~:'.c.ib';'- Dana Schuma, Project Planner City of Temecula Planning Department 43200 Business Park Drive Post Office Box 9033 Temecula, CA 92589-9033 SUBJECT: WATER AND SEWER AVAILABILITY PROFESSIONAL HOSPITAL SUPPLY PARCEL NO.4 TENTATIVE PARCEL MAP NO. 35181 APN 909-370-018 AND APN 909-370-032 CITY PROJECT NO. P A06-0369, P A06-0370 [TEMECULA PROPERTIES, LLC] Dear Ms. Schuma: Please be advised that the above-referenced property is located within the boundaries of Rancho California Water District (RCWD), and fronts an existing 12-inch diameter water pipeline, and 8-inch diameter sewer pipeline. Water and sewer service, therefore, would be available upon the completion of financial arrangements, between RCWD and the property owner. If new facilities are required for fire protection or other, the customer will need to contact RCWD for fees and requirements. In addition, water availability is contingent upon the property owner signing an Agency Agreement that assigns water management rights, if any, to RCWD. If you should have any questions, please contact an Engineering Services Representative at this office. Sincerely, RANCHO CALIFORNIA WATER DISTRICT ~Wl Corey F. Wallace, P.E. Development Engineering Manager cc: Laurie Williams, Engineering Services Supervisor 06\CW:atl35\FEG Rancho California Water District 42135 Winchester Road . PostOffiooBox9017. Tcmecula, California 92589.9017 . (951)296-6900. FAX(951)296-6860 www.ranrnowater.com '\'..~ / / ,--.,. EASTERN INFORMATION CENTER CALIFORNIA HISTORICAL RESOURCES INFORMATION SYSTEM Department of Anthropology, University of California, Riverside, CA 92521-0418 (951) 827-5745 - Fax (951) 827-5409 - eickw@ucr.edu Inyo, Mono, and Riverside Counties December 19, 2006 TO: Dana Schuma City of Temecula Planning Department RE: Cultural Resource Review Case: PA 06-0369/DP/PHS and PA 06-0370/TPM/PHS Records at the Eastern Information Center of the California Historical Resources Information System have been reviewed to determine if this project would adversely affect prehistoric or historic cultural resources: The proposed project area has not been surveyed for cultural resources and contains or is adjacent to known cultural resource(s). A Phase I study is recommended. Based upon existing. data the proposed project area has the potential for containing cultural resources. A Phase I study is recommended. ...!L. Phase I cultural resource studies (RI-3279, 4258, and 6280) Identified one or more cultural resources. The project area contains, or has the possibility of containing, cultural resources. However, due to the nature of the project or prior data recovery studies, an adverse effect on cultural resources is not anticipated. Further study is not recommended. . A Phase I cultural resource study (RI- recommended. ) identified no cultural res'Ources. Further study is not There is a low probability of cultural resources. Further study is not recommended. If, during construction, cultural resources are encountered, work should be halted or diverted in the immediate area while a qualified archaeologist evaluates the finds and makes recommendations. Due to the archaeological sensitivity of the area, earthmoving during construction should be monitored by a professional archaeologist. ~ The submission of a cultural resource management report is recommended following guidelines for Archaeological Resource Management Reports prepared by the California Office of Historic Preservation, Preservation Planning Bul/etln 4(a), December 1989. _ Phase I A Phase II A Phase III Phase IV Records search and field survey Testing [Evaluate resource significance; propose mitigation measures for "significant" sites.] Mitigation [Data recovery by excavation, preservation in place, or a combination of the two.] Monitor earthmoving activities COMMENTS: The project area has been generally examined in the course of sElveral previous studies (RI-1121, 3279, 42S8, and 6280), resulting in the recordation of three archaeoloqlcal sites (CA-RiV-0237, -4786, and - 4986) and identification of posslbiy a fourth cultural resources property (not formally recorded [RI-6280]). It is recommended that the four sites be re-Iocated, their condition assessed, and a plan developed as necessary to evaluate the potential significance of these cultural resources. if you have any questions, please contact us. Eastern Information Center PECtlANGA CULTURAL RESOURCES Temecula Band of Lw:'ello Mission Indians Chairperson: Germaine Arenas Vice Chairperson: Mal)' Hear Mabrcc POOlt Office. Box 2183 . 'femccllln, CA 92593 Telephone (951) 308-9295. Fax (951) 506~9491 Committee Members: Raymond BasqUl.~J:, Sr. Evie Gerber Dnrlenc Mimnda Bridgett Barcello Maxwell December 22, 2006 Director: Gary DuBois Coordinator: Pii.tiIMa~arro SENT VIA FACSIMILE AND E-MAIL Cultural Analyst: Stephanie Gordin Dana Schuma, Project Planner City of Temecula Planning Department PO 130x 9033 Temecula, CA 92589c9033 Monitor Supervisor: AurClia. Marruffo Re: Comments onPA06-0369/PA06-03'lO Dear Ms. Schuma: This comment letter is submitted by the Pechanga Band of Luisefio Indians (hereinafter, "Pechanga Tribe"), a federally recognized Indian tribe and sovereJgtl gOverliment. We request that this letter and all of the Tribe's comments be part of the official record for the 'lpproval of this Project. We also request that the City of TemeouJa provide tis with cqpies of all archeologiCal studies, reports, site records, proposed testing plans, and proposed miti!5ation measures, and conditions as soon as they beiJomeavaillible. We are also requesting that the Tribe be on them;liling list for this Project so that we receive all notices, public dOcuments, and hearing notices piirtaiitingto this Project The Pechanga Tribe is wq\!l'stingto be consUlted, withQn the abQve listed Projl'cts, and we have bl'en attempting to get mofeinforlilation from theCil.y Planner so that we canpro..-idl' written comments, hut have received no resp<)Ose. Althis time the Tribe understands that thl' Projl'ctsstiII wiUgo through an environmental. re..-iew process. As sUelI, the Tdbeis requestingputSuant to ~21083,1 of the Public Resour(lI'S Codl' to he involvl'd in.thisprocess,inOludingrequesting notice of all comment periods and public hearings. If thes.e Projects will nOt be sUbj\'lct to CEQA,l'ither pursuant to a CEQA Exemption or for some other reasoll, the Tribe requests to meet with the City regarding our concerns priQr to any grading permits beinggrantl'd for the~e Projects. PRO.JECTIMPAC'I'ST{) CULTURAL.RESOlJRCE$ As the City is aware, tlIere isasignificantarchl'ological and culttrral village, knownprimatily as CA-RIV 237, located on the Project property. This sitl' is known to contain sacred itl'ms and Native American human remains and has been designated with an avoidance status by the City on previous projects. Pre..-ious developers have also agrel'dto lea..-e certain areas of the village preserved in open space. There are also other details concerning theresources thatthe City needs to be aware of prior to procel'ding with any Project approval for this geographic area. The Tribe Sacred is The Duty Trusted Unto Our Care And With Honor lYe Rise To The Need Pechanga Letter dated 12/22/2006, to City ofTemecula Re: Comments on PA06-0369/PA06-0370 Page 2 fonnally requests to meet with the City concerning these issues prior to these Projects receiving any approvals. The Pechanga Tribe is not opposed to this development project. The Pechanga Tribe's primary concerns stem from the project's likely impacts on Native American cultural resources. The Pechanga Tribe is concerned about both the protection of unique and irreplaceable cultural resources, such as Luiseiio village sites and archaeological items which may be displaced by ground-disturbing work on the project, and on the proper and lawful treatment of cultural items, Native American human remains and sacred items that may be discovered in the course of the work. The Pechanga Tribe has a legal and cultural interest in the proper protection of sacred places and all Luiseno cultural resources that are located on these Project properties. Given that Luiseiio cultural resources may be affected by the Project, the Pechanga Tribe is formally requesting to be involved and participate with the Lead Agency and the Project Applicant in developing all monitoring and mitigation plans for the duration of the Project. Further, given the potential for archaeological resources within the Project area, it is the position of the Pechanga Tribe that Pechanga tribal monitors should be required to be present during all ground-disturbing activities if such activities are conducted in native soils that have previously not been subject to mass grading, including any archeological testing performed. It is further the position of the Pechanga Tribe that an Agreement regarding appropriate treatment of cultural resources be drafted and entered into by and between the Project Applicant and the Pechanga Tribe. This Agreement will also address inadvertent discoveries and the issues with regard to the existing resources on the Project property. The Pechanga Tribe also requests that all existing sacred sites on the Project property be preserved. . The Pechanga Tribe believes that if human remains are discovered, State law would apply and the mitigation measures for the pennit must account for this. According to the California Public Resources Code, S5097.98, if Native American human remains are discovered, the Native American Heritage commission must name a "most likely descendant," who shall be consulted as to the appropriate disposition of the remains. Given the Project's location in Pechanga territory, the Pechanga Tribe intends to assert its right pursuant to California law with regard to any remains or items discovered in the course of this project. The Agreement mentioned above would also address Native American human remains as well. Lastly, in the case of discovery of new or additional sites or resources, the Pechanga Tribe requests that all new sacred sites be preserved, and that the Lead Agency commit to re-evaluating the Project impacts to cultural resources and adopting appropriate mitigation measures to address such inadvertent discoveries. . The Pechanga Tribe intends to assert its legal rights with respect to additional finds of significant sites or cultural resources which are of sacred and ceremonial significance to the Pechanga Tribe. The Pechanga Tribe looks forward to working together with the City of Temecula Planning Department and other interested agencies in protecting the invaluable Luiseiio cultural resources Peclumga Cultural Resources. Temecula Band of LlliseJio iV/Jssiol1 Indians Post Office Box 2183. remeclI/a. CA 92592 Sacred Is The Duty Trusted Vlllo Our Care And With HOllor We Rise To The Need Pechanga Letter dated 12/22/2006, to City of Temecllla Re: Comments on P A06-0369/P A06-0370 Page 3 found in the Project area. If you have any questions, please do not hesitate to contact me at (951) 30&-9295. Please contact me as soon as possible to set up a. meeting time concerning the Tribe's issues. Thank you for the opportunity to submitthese comments. Sincerely, ~ ~~L.t.~ DaJeFoster Cultural Analyst Cc: Debbie Ubnoske, City Planning Director David Hogan, City Planning Departtnent Pechanga Legal Department Pechanga Cultural Resources. Te11lecula Baud of LuiseIio Missidll Indians Post Office Box 2/83 . Temecula, CA 92592 Sacred L, Tire Dilly Trusted Unto aliI' Care And Witlr HOllOI' We Rise To 771e Need ATTACHMENT NO.6 PC RESOLUTION NO. 07"_ (DEVELOPMENT PLAN) G:\Planning\2006\PA06-0370 PHS Tentative Map (TTM35181)\Planning\PC\PC STAFF REPORT. doc 18 PC RESOLUTION NO. 07- A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF TEMECULA APPROVING PLANNING APPLICATION NOS. PA06-0369 AND PA07-0090, A DEVELOPMENT PLAN TO CONSTRUCT A THREE STORY, 608,934 SQUARE FOOT INDUSTRIAL DISTRIBUTION BUILDING AND A 400 SQUARE FOOT PUMP HOUSE ON 32 ACRES LOCATED AT THE NORTHWEST CORNER OF DENDY PARKWAY AND WINCHESTER ROAD, AND A MINOR EXCEPTION TO ALLOW FOR A ONE PERCENT BUILDING HEIGHT INCREASE FROM 50' TO 50'8" (APN 909-370-018 AND 909-370-032) Section 1. Procedural Findinas. The Planning Cornrnission of the City of Ternecula does hereby find, deterrnine and declare that: A. On Decernber 12 2006, The Garrett Group filed Planning Application No. PA06-0369, (Developrnent Plan), and on March 20,2007, filed Planning Application No. PA07-0090, (Minor Exception), in a rnanner in accord with the City of Ternecula General Plan and Developrnent Code. B. The Application was processed including, but not lirnited to a public notice, in the tirne and rnanner prescribed by State and local law. C. The Planning Commission, at a regular rneeting, considered the Application and environrnental review on September 5, 2007, 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 rnatter. D. At the conclusion of the Comrnission hearing and after due consideration of the testirnony, the Cornrnission approved Planning Application Nos. PA06-0369 and PA07-0090 subject to and based upon the findings set forth hereunder. E. All legal preconditions to the adoption of this Resolution have occurred. Section 2. Further Findinas. The Planning Cornrnission, in approving the Application hereby finds, deterrnines and declares that: Develoornent Plan fDeveloornent Code Section 17.05.010.F\ A. The proposed use is in conforrnance with the General Plan for Ternecula and with all applicable requirernents of State law and other ordinances of the City; The project is consistent with the General Plan and the Development Code because the project has been designed in a manner that it is consistent with the applicable policies and standards for light industrial development. The proposed G:\Planning\2006\PA06-0369 PHS Development Plan\Planning\PC\DRAFT PC-Reso DP & Minor Exc.doc 1 industrial use is permitted in the land use designation standards contained in the General Plan and Development Code. The site is properly planned and zoned, and as conditioned, is physically suitable for the type of development proposed. The project, as conditioned, is also consistent with other applicable requirements of State law and local ordinances, including the California Environmental Quality Act (CEQA), the City Wide Design Guidelines, and fire and building codes. B. The overall developrnent of the land is designed for the protection of the public health, safety, and general welfare; The overall design of the project, including site design, building height, setbacks, parking, circulation, and other associated site improvements is intended to protect the health and safety of those working in and around the site. The project is consistent with all applicable policies, guidelines, standards and regulations intended to ensure that the development will be constructed, and function in a manner consistent with the public health, safety, and welfare. Soecial Use Reaulations and Standards. Increase in Floor Area Ratio lDeveloornent Code Section 17.08.050.A.2) A. The project includes a use which provides outstanding and exceptional benefits to the City with respect to the ernployrnent, fiscal, social and econornic needs of the cornrnunity; The project provides exceptional fiscal and economical benefits to the City in that Professional Hospital Supply (PHS) is a major employer within the City, as well as a large generator of sales tax revenue. PHS has experienced substantial growth and their continued growth and expansion within the City will help to meet the fiscal and economic needs of the community. The proposed expansion site requires a four percent floor area ratio increase for a state of the art distribution facility and office headquarters large enough to accommodate future growth of PHS operations. Minor Exceotion lDeveloornent Code Section 17.03.060.0\ A. There are practical difficulties or unnecessary hardships created by strict application of the code due to the physical char~cteristics of the site; There are practical difficulties related to the building construction and architecture that make it difficult to meet the development standards for the Light Industrial (LI) zone without the Minor Exception. In order to provide an appropriate ceiling height for each of the office floors and visually screen roof top equipment the cornice along the office portion of the building must be 50'8" in height, thus requiring a one percent building height increase to meet the development standards of the LI zone. Without the granting of the Minor Exception the building would not meet the current standards, which poses a practical difficulty and unnecessary hardship. G:\Planning\2006\PA06-0369 PHS Development Plan\Planning\PC\DRAFT PC Reso DP & Minor Exc.doc 2 B. The Minor Exception does not grant special privileges which are not otherwise available to surrounding properties and will not be detrirnentalto the public welfare or the property of other persons located in the vicinity; The Minor Exception does not grant special privileges which are not otherwise available to surrounding properties because the exception is consistent with Development Code, which allows for up to a 15 percent deviation from the LI development standard. The request for the Minor Exception allows for the one percent height increase of 8" and special privileges have not been granted which are not otherwise available by meeting the findings within the Development Code. The granting of this exception will not be detrimental to the public welfare or property of other persons within the vicinity as the height increase is only for the office portion ofthe building, which is only 14 percent ofthe entire building footprint. C. The Minor Exception places suitable conditions on the property to protect surrounding properties and does not perrnit uses which are not otherwise allowed in the zone; The Minor Exception to increase the building heightplaces suitable conditions on the property to protect surrounding properties. The proposed project is for an industrial building, which is permitted in the Light Industrial zone. The Minor Exception will allow a one percent height increase, which will not allow for uses which are not otherwise allowed in the zone. Section 3. Environrnental Cornoliance. The Planning Cornrnission hereby rnakes the following environrnental findings and determinations in connection with the approval of the Developrnent Plan (PA06-0369) and Minor Exception (PA07-0090): A. Pursuant to California Environrnental Quality Act ("CEQA"), City staff prepared an Initial Study of the potential environrnental effects of the approval of the Developrnent Plan and Minor Exception as described in the Initial Study ("the Project"). Based upon the findings contained in that study, City staff deterrnined that there was no substantial evidence that the Project could have a significant effect on the environrnent 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. The public cornrnent period cornrnenced on August 4, 2007, and expired on Septernber 3, 2007. Copies of the docurnents have been available for public review and inspection at the offices of the Departrnent of Planning, located at City Hall, 43200 Business Park Drive, Temecula, California 92590. C. Three written comrnents were received prior to the public hearing and a response to all the cornrnents rnade therein was prepared, subrnitted to the Planning Cornrnission and incorporated into the administrative record of the proceedings. G:\Planning\2006\PA06.0369 PHS Development Plan\Planning\PC\DRAFT PC Reso DP & Minor Exc.doc 3 D. The Planning Cornrnission has reviewed the Mitigated Negative Declaration and all cornrnents received regarding the Mitigated Negative Declaration prior to and at the date public hearing, and based on the whole record before it finds that (1) the Mitigated Negative Declaration was prepared in cornpliance with CEQA; (2) there is no substantial evidence that the Project will have a significant effect on the environrnent; and (3) the Mitigated Negative Declaration reflects the independent judgrnent and analysis of the Planning Cornrnission. E. Based on the findings set forth in this Resolution, the Planning Cornrnission hereby adopts the Mitigated Negative Declaration prepared for this project. Section 4. Conditions. The Planning Cornrnission of the City of Ternecula approves Planning Application Nos. PA06-0369 and PA07-0090, a Developrnent Plan to construct a 608,934 square foot, three story industrial distribution building on 32.1 acres, and a Minor Exception to allow for a one percent building height increase, subject to the Conditions of Approval set forth on Exhibit A, attached hereto, and incorporated herein by this reference. G:\Planning\2006\PA06-0369 PHS Development Plan\Planning\PC\DRAFT PC Reso DP & Minor Exc.doc 4 Section 5. PASSED, APPROVED AND ADOPTED by the City of Ternecula Planning Cornrnission this 5th day of Septernber 2007. Dennis Chiniaeff, Chairrnan ATTEST: Debbie Ubnoske, Secretary [SEAL] STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss CITY OF TEMECULA ) I, Debbie Ubnoske, Secretary of the Ternecula Planning Cornrnission, do hereby certify that the forgoing PC Resolution No. 07-_ was duly and regularly adopted by the Planning Cornrnission of the City of Ternecula at a regular rneeting thereof held on the 5th day of Septernber 2007, by the following vote: AYES: PLANNING COMMISSIONERS: NOES: PLANNING COMMISSIONERS: ABSENT: PLANNING COMMISSIONERS: ABSTAIN: PLANNING COMMISSIONERS: Debbie Ubnoske, Secretary G:\Planning\2006\PA06-0369 PHS Development Plan\Planning\PC\DRAFT PC Reso DP & Minor Exc.doc 5 EXHIBIT A DRAFT CONDITIONS OF APPROVAL G:\Planning\2006\PA06-0369 PHS Development Plan\Planning\PC\DRAFT PC Reso DP & Minor Exc.doc 6 EXHIBIT A CITY OF TEMECULA DRAFT CONDITIONS OF APPROVAL Planning Application No.: PA06-0369 and PA07-0090 Project Description: A Development Plan application to construct a three story, 608,934 square foot industrial distribution building for office and warehouse use, a 400 square foot pump house on 32 acres (Parcel 4 of TTM 35181), and a Minor Exception to allow for a one percent building height increase from 50' to 50'8", located on the northwest corner of Dendy Parkway and Winchester Road Assessor's Parcel No. 909-370-018; 909-370-032 MSHCP Category: Per the Development Agreement DIF Category: TUMF Category: Per the Development Agreement Per the Development Agreement Approval Date: September 5, 2007 Expiration Date: September 5 2009 WITHIN 48 HOURS OF THE APPROVAL OF THIS PROJECT Planning Department 1. The applicant/developer shall deliver to the Planning Department a cashier's check or money order made payable to the County Clerk in the amount of One Thousand Eight Hundred and Sixty-Four Dollars ($1,864.00) which includes the One Thousand Eight Hundred Dollar ($1 ,800.00) fee, required by Fish and Game Code Section 711.4(d)(3) plus the Sixty-Four Dollar ($64.00) County administrative fee, to enable the City to file the Notice of Determination for the Mitigated Negative Declaration required under Public Resources Code Section 21152 and California Code of Regulations Section 15075. If within said 48- hour period the applicant/developer has not delivered to the Planning Department the check as required above, the approval for the project granted shall be void by reason of failure of condition [Fish and Game Code Section 711.4(c)]. G:\Planning\2006\PA06-0369 PHS Development Plan\Planning\PC\DRAFT COA PA06-0369.doc 1 GENERAL REQUIREMENTS G:\Planning\2006\PA06-0369 PHS Development Plan\Planning\PC\DRAFT COA PA06-0369.doc 2 Planning Department 2. The applicant shall sign both copies of the final Conditions of Approval that will be provided by the Planning Department staff, and return one signed set to the Planning Department for their files. 3. The applicant 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. 4. The permittee shall obtain City approval for any modifications or revisions to the approval of this project. 5. This approval shall be used within two years of the approval date; otherwise, it shall become null and void. By use is meant 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 3 one-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. The Conditions of Approval specified in this resolution, to the extent specific items, materials, equipment, techniques, finishes or similar matters are specified, shall be deemed satisfied by staffs prior approval of the use or utilization of an item, material, equipment, finish or technique that City staff determines to be the substantial equivalent of that required by the Conditions of Approval. Staff may elect to reject the request to substitute, in which case the real party in interest may appeal, after payment of the regular cost of an appeal, the decision to the Planning Commission for its decision. Material Color Concrete Tilt-up Panels ICI 632 Sutton Place ICI815 Natural White ICI 606 Song Sparrow G:\Planning\2006\PA06-0369 PHS Development Plan\Planning\PC\DRAFT COA PA06-0369.doc 3 Parapet Glazing ICI815 Natural White y." Gray 1 O. 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. 11. The applicant shall paint a 3-foot x 3-foot section of the building for Planning Department inspection, prior to commencing painting of the building. 12. 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. 13. Trash enclosures shall be provided to house all trash receptacles utilized on the site. These shall be clearly labeled on site plan. 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 prior to commencement of any construction within an existing or proposed City right-of-way. 16. All improvement plans and grading 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. 17. The project shall include construction-phase pollution prevention controls and permanent post-construction water quality protection measures into the design of the project to prevent non-permitted runoff from discharging offsite or entering any storm drain system or receiving water. 18. 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. 19. The provisions for the design, improvement, lot configuration, public facility financing and the following Conditions of Approval are predicated on the approval and full execution of a Development Agreement between Temecula Properties, LLC and the City on or about September 25, 2007. G:\Planning\2006\PA06-0369 PHS Development Plan\Planning\PC\DRAFT COA PA06-0369.doc 4 Building and Safety Department 20. The code analysis shall be printed on the plans along with the letter from the Director of Building and Safety, dated September 12, 2006. 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 Temecula has adopted an ordinance to collect fees 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 03-01 and the fee schedule in effect at the time of building permit issuance. 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. Trash enclosures, patio covers, light standards, and any block walls if not on the approved building plans, will require separate approvals and permits. 32. Obtain street addressing for all proposed buildings prior to submittal for plan review. 33. 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, G:\Planning\2006\PA06-0369 PHS Development Plan\Planning\PC\DRAFT COA PA06-0369.doc 5 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 34. Restroom fixtures, number and type, to be in accordance with the provisions of the 2001 edition of the California Building Code Appendix 29. 35. Provide electrical plan including load calculations and panel schedule, plumbing schematic and mechanical plan applicable to scope of work for plan review. 36. Truss calculations that are stamped by the engineer of record and the truss manufacturer engineer are required for plan review submittal. 37. Provide precise grading plan at plan check submittal to check accessibility for persons with disabilities. 38. Please be advised of the 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. 39. Buildings shall provide a house electrical meter to provide for operation of exterior lighting, irrigation pedestals, and fire alarm systems for each building on the site. 40. A pre-construction meeting is required with the building inspector prior to the start of the building construction. Fire Prevention Bureau 41. 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 submittal. 42. 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 4,000 GPM at 20 PSI residual operating pressure for a 4-hour duration. The Fire Flow as given above has taken into account all information as provided (CFC 903.2, Appendix III-A). 43. 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 off-site (6" x 4" x 2-2 1/2" outlets) on a looped system shall be located on fire access roads and adjacent to public streets. Hydrants shall be spaced at 350 feet apart, at each intersection and shall be located no more than 210 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 (CFC 903.2, 903.4.2, and Appendix III-B). G:\Planning\2006\PA06-0369 PHS Development Plan\Planning\PC\DRAFT COA PA06-0369.doc 6 44. 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). Community Services Department 45. 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. 46. The Applicant shall comply with the Public Art Ordinance. 47. All parkways, entry way median, landscaping, walls, fencing and on site lighting shall be maintained by the property owner or maintenance association. 48. The developer shall contact the City's franchised solid waste hauler to verify Trash compactor specifications and servicing requirements prior to purchase and installation of any equipment. G:\Planning\2006\PA06-0369 PHS Development Plan\Planning\PC\DRAFT COA PA06-0369.doc 7 PRIOR TO ISSUANCE OF GRADING PERMITS G:\Planning\2006\PA06-0369 PHS Development Plan\Plannlng\PC\DRAFT COA PA06-0369.doc 8 Planning Department 49. Provide the Planning Department with a copy of the underground water plans and electrical plans for verification of proper placement of transformer( s) and double detector check prior to final agreement with the utility companies. 50. 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. 51. The recommendations contained in soils report(s), geotechnical report, and slope stability report shall be implemented. 52. The Applicant shall submilto the Public Works Department an erosion control plan prepared in accordance with City requirements. 53. 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." 54. The project proponent shall enter into a Treatment Agreement with the Pechanga Band of Luiseno Indians. This agreement will address the treatment and disposition of cultural resources and human remains that may be uncovered during construction as well as provisions for tribal monitors. 55. Tribal monitors from the Pechanga Band of Luiseno Indians shall be allowed to monitor all grading, excavation and ground-breaking activities, including further surveys, to be compensated by the project proponent. The Pechanga Tribal monitors shall have the authority to temporarily stop and redirect grading activities to evaluate the significance of any archaeological resources discovered on the property, in conjunction with the archeologist and the Lead Agency. 56. A qualified archaeologist monitor shall be present during all earthmoving activities. The monitor shall be empowered to temporarily halt or redirect construction work in the vicinity of the find until it can be evaluated by the project archaeologist in conjunction with the Pechanga Tribe. In the event of a new find, further testing, excavation, and/or reporting may be required. 57. If cultural resources are discovered during the project construction (inadvertent discoveries), all work in the area ofthe find shall cease, and a qualified archaeologist and representatives G:\Planning\2006\PA06-0369 PHS Development Plan\Planning\PC\DRAFT COA PA06-0369.doc 9 of the Pechanga Tribe shall be retained by the project sponsor to investigate the find, and make recommendations as to treatment and mitigation. 58. If human remains are encountered, all activity shall cease and the County Coroner must be notified immediately. State Health and Safety Code Section 7050.5 state that no further disturbance shall occur until the County Coroner has made a determination of the origin and until treatment pursuant to Public Resources Code Section 5097.98 has been decided. The Coroner shall determine if the remains are prehistoric, and shall notify the State Native American Heritage Commission (NAHC) if applicable. Further actions shall be determined pursuant to California Public Resources Code Section 5097.98. 59. The landowner shall agree to relinquish ownership of all cultural resources, including all Luiseno sacred items, burial goods and all archeological artifacts that are found on the project site to the Pechanga Band of Luiseno Indians for proper treatment and disposition. 60. All sacred sites within the project area are to be avoided and preserved. 61. The %-acre of cultural site CA-RIV 237 located in the northeast corner of Planning Application PA06-0370 shall be preserved in Open Space and recorded with the County Recorder of Riverside County as a conservation easement for preservation purposed in perpetuity. The %-acre of CA-RIV 237 shall not be subject to development, archeological testing or ground-disturbing activities. 62. Cultural Resources Sensitivity Training (a 15-minute presentation) should be required for all project personnel. 63. All impacts to the sandstone and fanglomerate members of the Pauba Formation should be monitored full time at the beginning of grading. A trained paleontological monitor shall be present during ground disturbing activities within the project area determined likely to contain paleontological resources. Monitoring will be adjusted to spot checking if initial monitoring shows negative results. 64. Upon encountering any significant fossils, salvage of all fossils in the area will be conducted with additional field staff and in accordance with modern paleontological techniques. 65. Any significant fossils recovered shall be prepared to a reasonable point of identification. Excess sediment or matrix will be removed from the specimens to reduce the bulk and cost of storage. Itemized catalogs of all material collected and identified shall be provided to the museum repository along with the specimens. 66. A report documenting the results of the monitoring and any salvage activities and the significance of the fossils shall be prepared. 67. Any significant fossils recovered, along with the itemized inventory of the specimens, shall be deposited in a museum repository for permanent curation and storage. G:\Planning\2006\PA06-0369 PHS Development Plan\Planning\PC\DRAFT COA PA06-0369.doc 10 Public Works Department 68. 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. 69. The Developer shall post security and enter into an agreement guaranteeing the grading and erosion control improvements in conformance with applicable City Standards and subject to approval by the Department of Public Works. 70. 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. 71. A Geotechnical Report shall be prepared by a registered engineer or engineering geologist and submitted to the Department of Public Works with the initial grading plan check. The report shall address special study zones and identify any geotechnical hazards for the site including location of faults, slope stability and potential for liquefaction. The report shall include recommendations to mitigate the impact of ground shaking and liquefaction. a. Based on geologic relationships and observations, the site lacks evidence to support the existence/presence of Holocene faulting (i.e. broken soil horizon or shear planes). The building site area is not traversed by an active fault that would affect the stability of the cut slope proposed or the building structure. A certified engineering geologist shall perform regular field reconnaissance during site earthwork construction. This field mapping is intended to further evaluate site conditions and limit the possibility that adverse conditions will be exposed that could affect site stability. 72. 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. 73. Construction-phase pollution prevention controls shall be consistent with the City's Grading, Erosion and Sediment Control Ordinance and associated technical manual, and the City's standard notes for Erosion and Sediment Control. 74. 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. G:\Planning\2006\PA06-0369 PHS Development Plan\Plannlng\PC\DRAFT COA PA06-0369.doc 11 75. 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 76. 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. 77. Permanent landscape and irrigation plans shall be submitted to the Planning Department and the Department of Public Works for review and approval. 78. The applicant shall comply with the provisions of Chapter 8.24 of the T emecula 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. 79. 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. 80. 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. Fire Prevention Bureau 81. 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 required fire flow shall be provided. For this project on site fire hydrants are required (CFC 903.2). 82. Minimum outside turning shall be forty-five (45) feet for commercial buildings. 83. 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). 84. 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 (13) feet six (6) inches (CFC 902.2.2.1). 85. The gradient for a fire apparatus access road shall not exceed fifteen (15) percent (CFC 902.2.2.6 Ord. 99-14). 86. Prior to 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). G:\Planning\2006\PA06-0369 PHS Development Plan\Planning\PC\DRAFT COA PA06-0369.doc 12 87. Prior to building construction, this development shall have two (2) points of access, via all- weather surface roads, as approved by the Fire Prevention Bureau (CFC 902.2.1). G:\Planning\2006\PA06-0369 PHS Development Plan\Planning\PC\DRAFT COA PA06-0369.doc 13 PRIOR TO ISSUANCE OF BUILDING PERMIT G:\Planning\2006\PA06-0369 PHS Development Plan\Planning\PC\DRAFT COA PA06-0369.doc 14 Planning Department 88. 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. 89. Lighting within the proposed project adjacent to preserved habitat shall be of the lowest illumination allowed for human safety and selectively placed, shielded, and directed away from preserved habitat. 90. All downspouts shall be internalized on the office portion ofthe building. All downspouts for the warehouse/distribution portion of the building shall be painted the same color as the exterior of the building. 91. 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. A note on the plans stating that "Two landscape inspections are required: one inspection is required for irrigation lines and a separate inspection is required for final planting inspection." d. A note on the plans stating that "The contractor shall provide two copies of an agronomic soils report at the first irrigation inspection." e. One copy of the approved grading plan. t. Water usage calculations per Chapter 17.32 of the Development Code (Water Efficient Ordinance). g. Total cost estimate of plantings and irrigation (in accordance with approved plan). h. The locations of all existing trees that will be saved consistent with the tentative map. i. 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. j. 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 (2) 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. G:\Planning\2006\PA06-0369 PHS Development Plan\Planning\PC\DRAFT COA PA06-0369.doc 15 92. Plants selected for slope landscaping shall be light-weight, deep rooted type vegetations that require little water and are capable of surviving with little irrigation. 93. Landscape plans shall be prepared for all slopes created by the grading and fill of the site consistent with "Slope Planting Guidelines" and the Development Code, and shall provide erosion control on undeveloped portions of the site. 94. Landscape plans for Parcel 4 shall include the off-site slopes created by the development of Parcel 4 (including but not limited to the slopes proposed within Parcel 2 and the detention basin proposed within Parcel 1). All landscaping shall be installed and maintained in satisfactory condition by the property owner. 95. If deemed necessary by the Director of Planning, the applicant shall provide additional landscaping to effectively screen various components of the project (including but not limited to walls and parking areas). 96. 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. 97. All rooftop mechanical equipment shall be screened, or the views minimized, from all existing and future public right-of-ways. 98. Building Construction Plans shall include detailed 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. 99. Building plans shall indicate that all roof hatches shall be painted "International Orange." 100. The construction plans shall indicate the application of painted rooftop addressing plotted on a nine-inch grid pattern with 45-inch tall numerals spaced nine inches apart. The numerals shall be painted with a standard nine-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 101. Improvement plans and/or precise grading plans shall conform to applicable City of T emecula 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. b. Driveways shall conform to the applicable City of T emecula Standard No. 207 A. c. Street lights shall be installed along the publiC streets adjoining the site in accordance with City Standard No. 800, 801, 802 and 803. d. Concrete sidewalks and ramps shall be constructed along public street frontages in accordance with City of Temecula Standard Nos. 400. 401 and 402. G:\Planning\2006\PA06-0369 PHS Development Plan\Planning\PC\DRAFT COA PA06-0369.doc 16 e. Improvement plans shall extend 300 feet beyond the project boundaries. f. Minimum centerline radii shall be in accordance with City of Temecula's Standard No. 113. g. All street and driveway centerline intersections shall be at 90 degrees. h. Public Street improvement plans shall include plan and profile showing existing topography, utilities, proposed centerline, top of curb and flowline grades. i. Landscaping shall be limited in the corner cut-off area of all intersections and adjacent to driveways to provide for minimum sight distance and visibility. 102. 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. Winchester Road (Major Arterial Standards - 100' R/W) between Dendy Parkway and the southern project boundary plus transition to include dedication of half-width street right-of-way, installation of half-width street improvements, paving, curb and gutter, sidewalk, painted median, street lights, drainage facilities, signing and striping and utilities (including but not limited to water and sewer). b. Dendy Parkway (Major Arterial Standards - 100' R/W) between Winchester Road and the eastern project boundary plus transition to include dedication of half-width street right-of-way, installation of half-width street improvements, paving, curb and gutter, sidewalk, painted median, street lights, drainage facilities, signing and striping and utilities (including but not limited to water and sewer). c. Remington Avenue (Industrial Collector Highway Standards - 78' R/W) to include dedication of full width street right-of-way, installation of full width street improvements, curb and gutter, sidewalk, painted median, street lights, drainage facilities, signing and striping, utilities (including but not limited to water and sewer). d. Remington Avenue and Winchester Road intersection to include a stop control on the eastbound leg of Remington Avenue for an all-way stop controlled intersection and a striped 200-foot northbound left turn pocket. In addition, secure with a cash deposit to include a year 2009 traffic analysis to determine traffic signal warrants and a fair share contribution for the design and installation of a traffic signal. e. Cherry Street (Major Arterial-100' R/W) i. Dedication of half-width street right-of-way 103. All street improvement design shall provide adequate right-of-way and pavement transitions per Caltrans' standards for transition to existing street sections. 104. 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: pavement, curb and gutter, medians, sidewalks, drive approaches, street lights, signing and striping. b. Storm drain facilities. c. Sewer and domestic water systems. d. Under grounding of proposed utility distribution lines. G:\Planning\2006\PA06-0369 PHS Development Plan\Plannlng\PC\DRAFT COA PA06-0369.doc 17 105. 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. 106. All access rights, easements for sidewalks for public uses shall be submitted and reviewed by the Director of the Department of Public Works and City Attorney and approved by City Council for dedication to the City where sidewalks meander through private property. 107. The building pad shall be certified to have been substantially constructed in accordance with the approved Precise Grading Plan by a registered Civil Engineer, and the Soil Engineer shall issue a Final Soil Report addressing compaction and site conditions. 108. 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. 109. 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. Building and Safety Department 110. Provide appropriate stamp of a registered professional with original signature on plans prior to permit issuance. Fire Prevention Bureau 111. The developer shall furnish three copies of the water system plans directly 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). 112. 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 sec 902). 113. Fire sprinkler plans shall be submitted to the Fire Prevention Bureau for approval. Three sets of sprinkler plans must be submitted by the installing contractor to the Fire Prevention Bureau. 114. Fire alarm plans shall be submitted to the Fire Prevention Bureau for approval. The alarm system requires a dedicated circuit from the house panel. Three sets of alarm plans must be submitted by the installing contractor to the Fire Prevention Bureau. 115. Fuel modification plans shall be submitted to the Fire Prevention Bureau for review and G:\Planning\2006\PA06-0369 PHS Development Plan\Planning\PC\DRAFT COA PA06-0369.doc 18 approval for all open space areas adjacent to the wildland-vegetation interface (CFC Appendix II-A). 116. Plans for structural protection from vegetation fires shall be submitted to the Fire Prevention Bureau for review and approval. The measures shall include, but are not limited to, enclosing eaves, noncombustible barriers (cement or block walls), and fuel modification zones (CFC Appendix II-A). Community Services Department 117. The developer shall complete the TCSD application process, submit an approved Edison Streetlight Plan and pay the appropriate energy fees related to the transfer of street lighting into the TCSD maintenance program. 118. The developer shall provide TCSD verification of arrangements made with the City's franchise solid waste hauler for disposal of construction debris. G:\Planning\2006\PA06-0369 PHS Development Plan\Planning\PC\DRAFT COA PA06-0369.doc 19 PRIOR TO RELEASE OF POWER, BUILDING OCCUPANCY OR ANY USE ALLOWED BY THIS PERMIT G:\Planning\2006\PA06-0369 PHS Development Plan\Plannlng\PC\DRAFT COA PA06-0369.doc 20 Planning Department 119. If deemed necessary by the Director of Planning, the applicant shall provide additional landscaping to effectively screen various components of the project. 120. 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 equipment from 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. 121. 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. 122. 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. 123. 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." 124. 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. 125. 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. 126. All of the foregoing conditions shall be complied with prior to occupancy or any use allowed by this permit. G:\Planning\2006\PA06-0369 PHS Development Plan\Planning\PC\DRAFT COA PA06-0369.doc 21 Public Works Department 127. 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. 128. 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 129. All public improvements, including traffic signals, shall be constructed and completed per the approved plans and City standards to the satisfaction of the Director of the Department of Public Works. 130. 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 Bureau 131. "Blue Reflective Markers" shall be installed to identify fire hydrant locations (CFC 901.4.3). 132. 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 shall have a minimum twelve (12) inches numbers with 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). 133. Based on square footage and type of construction, occupancy or use, the developer shall install a fire sprinkler system (CFC Article 10, CBC Chapter 9). 134. 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 prior to installation (CFC Article 10). 135. 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 (CFC 902.4). 136. 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). 137. 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:\Planning\2006\PA06-0369 PHS Development Plan\Planning\PC\DRAFT COA PA06-0369.doc 22 138. Buildings housing high-piled combustible stock shall comply with the provisions of Uniform Fire Code Article 81 and all applicable National Fire Protection Association standards. The storage of high-piled combustible stock may require structural design considerations or modifications to the building. Fire protection and life safety features may include some or all of the following: an automatic fire sprinkler system(s) designed for a specific commodity class and storage arrangement, hose stations, alarm systems, smoke vents, draft curtains, Fire Department access doors and Fire department access roads (CFC Article 81). 139. Prior to the building final, speculative buildings capable of housing high-piled combustible stock, shall be designed with the following fire protection and life safety features: an automatic fire sprinkler system(s) designed for a specific commodity class and storage arrangement, hose stations, alarm systems, smoke vents, draft curtains, Fire Department access doors and Fire department access roads. Buildings housing high-piled combustible stock shall comply with the provisions California Fire Code Article 81 and all applicable National Fire Protection Association standards (CFC Article 81). 140. 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). 141. A simple plot plan and a simple floor plan, each as an electronic file of the .DWG format must be submitted to the Fire Prevention Bureau. Alternative file formats may be acceptable, contact Fire Prevention for approval. 142. 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). 143. If there are changes to underlying maps then prior to map recordation the applicant shall submit to the Fire Prevention Bureau a georectified (pursuant to Riverside County standards) digital version of the map including parcel and street centerline information. The electronic file will be provided in a ESRI Arclnfo/ArcView compatible format and projected in a State Plane NAD 83 (California Zone VI ) coordinate system. The Bureau must accept the data as to completeness, accuracy and format prior to satisfaction of this condition. 144. 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). G:\Plannlng\2006\PA06-0369 PHS Development Plan\Planning\PC\DRAFT COA PA06-0369.doc 23 OUTSIDE AGENCIES G:\Planning\2006\PA06-0369 PHS Development Plan\Planning\PC\DRAFT COA PA06-0369.doc 24 145. The applicant shall comply with the recommendations set forth in the Department of Environmental Health transmittal dated January 17, 2007, a copy of which is attached. 146. The applicant shall comply with the recommendation set forth in the Rancho Water District's transmittal dated December 27,2006, a copy of which is attached. 147. The applicant shall comply with the recommendations set forth in the Eastern Information Center's transmittal dated December 19, 2006, a copy of which is attached. 148. The applicant shall comply with the recommendations set forth in the Pechanga Cultural Resources comment letter dated December 22, 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\PA06-0369 PHS Development Plan\Planning\PC\DRAFT COA PA06-0369.doc 25 ~ DE~AIirMENTIOFIENvlRONMENTALGHEAtTH ~ 111!"'"ill~"'".",,""'""'''~"'' ~1.""'"'"'.',''."~II'''.''.'"'"'"'"'''~''''''''''''W.~''~'l..I''''''''''',.....Il"'...,,'"....,'~"'..,'_"".'"''''..""...'''''.'_ January 17,2007 City of Temecula Planning Department P.O. Box 9033 Temecula, CA 92589-9033 Attention: DanaSchuma RE: Development Plan No. P A06-0369 L" ~.~ i 8 '1 ) Rv,,~....,"_..__ ;tt"b';ii1; _ ,..+)~:li u i ;:::~': Dear Ms. Schuma: Department of Environmental Health has reviewed the development plan to construct a three story, 615, 050 square foot tilt-up industrial building for office and warehouse used and 400 square foot pump house on 36.2 acres. The project is located on the northwest comer of Dendy Parkway and Winchester Road. The site plan does indicate if either water and sewer services exist, we assume that these services are in and are available. 1. PRIOR TO THE ISSUANCE OF BUILDING PERMITS THE FOLLOWING SHOULD BE REQUIRED: a) ''Will-serve'' letters from the appropriate water district. 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. ..;,;3: ,,1-- . --'} Sin;e/b I ~ saW~, Supervising (951) 955-8980 NOTE: Any current additional .."''1....:..._~.mts not covered. can be applicable at time of Building Plan review for final Der................~ of E......:....................~ Health clearance. Local Enforcement Agency. P.O. Box 1280, Riverside, CA 92502-1280 . (909) 955-8982 . FAX (90g) 781-9653 . 4080 Lemon Street, 9th Floor, Riverside, CA 92501 Land Use and Water Engineering. P.O. Box 1206, Riverside, CA 92502-1206 . {909} 955c8980 . FAX (909) 955-8903 0 4080 Lemon Street, 2nd Floor, Riverside, CA 92501 / @ Bancho Water Board ofDireetors 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 KeUi E. Garcia DistrictSecretal'y C. Michael Cowett Best Best & Krieger LLP General Counsel ,- ~."' ! , December 27,2006 I.- . ~~~ ~~ ....,., ~~,~;.~~.~, ~'-- Dana Schuma, Project Planner City of Temecula Planning Department 43200 Business Park Drive Post Office Box 9033 Temecula, CA 92589-9033 SUBJECT: WATER AND SEWER AVAILABILITY PROFESSIONAL HOSPITAL SUPPLY PARCEL NO. 4 T~NTATIVE PARCEL MAP NO. 35181 APN 909-370-018 AND APN 909-370-032 CITY PROJECT NO. P A06-0369, P A06-0370 [TEMECULA PROPERTIES, LLC] Dear Ms. Schuma: Please be advised that the above-referenced property is located within the boundaries of Rancho California Water District (RCWD), and fronts an existing 12-inch diameter water pipeline, and 8-inch diameter sewer pipeline. Water and sewer service, therefore, would be available upon the completion of financial arrangements, between RCWD and the property owner. If new facilities are required for fire protection or other, the customer will need to contact RCWD for fees and requirements. In addition, water availability is contingent upon the property owner signing an Agency Agreement that assigns water management rights, if any, to RCWD. If you should have any questions, please contact an Engineering Services Representative at this office. Sincerely, RANCHO CALIFORNIA WATER DISTRICT ~1JPl Corey F. Wallace, P.E. Development Engineering Manager cc: Laurie Williams, Engineering Services Supe.rvisor 06lCW:at135\FEG Rancho California Water District 42135WinchesterRoad . Post Office Box 9017 . Temccu\a, California 92589-9017 . (951)296-6900. FAX(951)296-6860 www.ranchowater.com ,"'" :..:;;:::! ) f / .", EASTERN INFORMATION CENTER CALIFORNIA HISTORICAL ~ESOURCES INFORMATION SYSTEM Department of Anthropology, University of California, Riverside, CA 92521-0418 (951) 827-5745 - Fax (951) 827-5409 - eickw@ucr.edu Inyo, Mono, and Riverside Counties December 19, 2006 TO: Dana Schuma City of Temecula Planning Department RE: Cultural Resource Review Case: PA 06-0369/DP/PHS and PA 06-0370jTPMjPHS Records at the Eastern Information Center of the California Historical Resources Information System have been reviewed to determine if this project would adversely affect prehistoric or historic cultural resources: The proposed project area has not been surveyed for cultural resources and contains or is adjacent to known cultural resource(s). A Phase I study is recommended. Based upon existing data the proposed project area has the potential for containing cultural resources. A Phase i study is recommended. ~ Phase I cultural resource studies (RI-3279, 4258, and 6280) identified one or more cultural resources. The project area contains, or has the possibility of containing, cultural resources. However, due to the nature of the project or prior data recovery studies, an adverse effect on cultural resources is not anticipated. Further study is not recommended. . A Phase I cultural resource study (RI- recommended. ) identified no cultural resources. Further study is not There is a low probability of cultural resources. Further study is not recommended. If, during construction, cultural resources are encountered, work should be halted or diverted in the immediate area while a qualified archaeologist evaluates the finds and makes recommendations. Due to the archaeological sensitivity of the area, earthmoving during construction should be monitored by a professional archaeologist. ~ The submission of a cultural resource management report is recommended follOWing guidelines for Archaeological Resource Management Reports prepared by the California Office of Historic Preservation, Preservation Planning Bulletin 4(a), December 1989. _ Phase I A Phase II A Phase III Phase IV Records search and field survey Testing [Evaluate resource significance; propose mitigation measures for "significant" sites.] Mitigation [Data recovery by excavation, preservation in place. or a combination of the two.] Monitor earthmoving activities COMMENTS: The project area has been generally examined in the course of several previous studies (RI-1121, 3279, 4258, and 6280), resulting in the recordation of three archaeological sites (CA-RIV-0237, -4786, and - 4986) and identification of possibly a fourth cultural resources property (not formally recorded [RI-6280]). It is recommended that the four sites be re-Iocated, their condition assessed, and a plan deveioped as necessary to evaluate the potential significance of these cultural resources. If you have any questions, please contact us. Eastern Information Center PECHANGA CULTURALRESOURC.ES Temecula Band qf Luiseiio A1ission Indians Chairperson: Germaine Arenas ViC:cChairpcrso~; MaryBcar Magee Post Qffice. Box 2183. Temccula, CA92593 Telephone (95l) 308-9295 . Fa.'< (951)50&.9491 Committec.Mcll1bcrs: Raymond Ba~qll(:z. Sr. Evic Gerber Darlene -Miranda Bridgett Barcello Maxwell December 22, 2006 Director: Gary DuBois Coordinator: Paul Macarro SENT VIAFACSIMILE AND E~MAIL CulturnlAoaiyst: Stephanie Gordin Dana Schuma, Project Planner City ofTemecula Planning Department PO Box 9033 Temecula, CA 92589-9033 MOIJ!tQr Sup_crvisor. AurClia Manuffo Re: Comments on PA06-0361)/PA06-0370 Dear Ms. Schuma: This comment letter is submitted by the Pechanga Band of Luisefio Indians (hereinafter, "Pechanga Tribe"), a federally recognized lndiantribea)id sovereign govern!"l1ent. We request that this letter and all of the Tribe's comments be part of the official record fOr the approval of tbis Project. We also request that the City of TeIllecu]a provide us. With copies of all atcheological studies, reports, site records, proposed testing plans, and proposed miti~tion measures, and conditions as soon as they becomeavai)aP!e. We are also requesting thatthe Tribe be on them;liling list for this Project so that we receive all notices, public documents, and hearing noticespertairiing to this Project. The Pechanga Tribei~ req\lestingtQ be constilted,wlth.on the above- HstedProjects, and we have been attempting to get moreinrOnilation from the City Planlierso that.we can provide written comments, but have received no. re$pon~e. At this time the tribe understands that the PrQjects still will go through an environmental. review process. As Stl9h, the Tribe is requesullgpUl"$Uant tc 921083.1 of the. Public ResourGes Code to be involved in this process, incll1dingreql1estingn.otice of all comment periods andpublicheadngs. If these Projeots will 110t be subject to CEQA, either pursuant to a CEQA Exemption or for some other reason, the Tribe requests to meet with the City regarding our Goncems prior to any grading permits being granted forthese Projects. PROJECT IMPACTS 1'0 CULTURALRESOl1.'RCES As the City is aware, there isa significant archeological and cultural viHage, knoWliprimarily as CA-RIV 237, located on the Project property. This site is known to contain saored items and Native American human remains and has been designated With an avoidance status by the City on previous projects. Previous developers have also agreed to leave certain areas of the village preserved in open space. There are also other details concemingthe resources that the City needs to be aware of prior to proceeding with any Project approval for this geographic area. The Tribe Sacred Is The Duty Trusted Unto Our Care And With Honor WeRise To The Need Pechanga Letter dated 12/22/2006, to City ofTemecula Re: Comments on PA06-0369/PA06-0370 Page 2 fonnally requests to meet with the City concerning these issues prior to these Projects receiving any approvals. The Pechanga Tribe is not opposed to this development project. The Pechanga Tribe?s primary concerns stem from the project's likely impacts on Native American cultural resources. The Pechanga Tribe is concerned about both the protection of unique and irreplaceable cultural resources, such as Luiseiio village sites and archaeological items which may be displaced by ground-disturbing work on the project, and on the proper and lawful treatment of cultural items, Native American human remains and sacred items that may be discovered in the course of the work. The Pechanga Tribe has a legal and cultural interest in the proper protection of sacred places and all Luiseno cultural resources that are located on these Project properties. Given that Luiseiio cultural resources may be affected by the Project, the Pechanga Tribe is formally requesting to be involved and participate with the Lead Agency and the Project Applicant in developing all monitoring and mitigation plans for the duration of the Project. Further, given the potential for archaeological resources within the Project area, it is the position of the Pechanga Tribe that Pechanga tribal monitors should be required to be present during all ground-disturbing activities if such activities are conducted in native soils that have previously not been subject to mass grading, including any archeological testing performed. It is further the position of the Pechanga Tribe that an Agreement regarding appropriate treatment of cultural resources be drafted and entered into by and between the Project Applicant and the Pechanga Tribe. This Agreement will also address inadvertent discoveries and the issues with regard to the existing resources on the Project property. The Pechanga Tribe also requests that all existing sacred sites on the Project property be preserved. The Pechanga Tribe believes that if human remains are discovered, State law would apply and the mitigation measures for the pennit must account for this. According to the California Public Resources Code, ~5097.98, if Native American human remains are discovered, the Native American Heritage commission must name a "most likely descendant," who shall be consulted as to the appropriate disposition of the remains. Given the Project's location in Pechanga territory, the Pechanga Tribe intends to assert its right pursuant to California law with regard to any remains or items discovered in the course of this project. The Agreement mentioned above would also address Native American human remains as well. Lastly, in the case of discovery of new or additional sites or resources, the Pechanga Tribe requests that all new sacred sites be preserved, and that the Lead Agency commit to re-evaluating the Project impacts to cultural resources and adopting appropriate mitigation measures to address such inadvertent discoveries. The Pechanga Tribe intends to assert its legal rights with respect to additional finds of significant sites or cultural resources which are. of sacred and ceremonial significance to the Pechanga Tribe. The Pechanga Tribe looks forward to working together with the City of Temecula Planning Department and other interested agencies in protecting the invaluable Luiseiio cultural resources Pechallga Cultural Resources. Temecu/a Band of LuiseHo Missiol1lndialts PostO.ljiceBox 2/83' Temeculo, CA 92592 Sacred Is The Duly Trusted Unto Our Care And With Honor We Rise To The Need Pechanga Letter dated 12/22/2006, to City ofTemecula Re: Comments on P A06-0369/P A06-0370 Page 3 fonnd in the Project area. If you have any questions, please do not hesitate to contact me at (951) 308.9295. Please contact me as soon as possible to set up a meeting time concerning the Tribe's issues. Thank yon for the opportunity to submit these comments. Sincerely, ~~ Dale Foster Cultural Analyst Cc; Debbie Ubnoske, City Planning Director David Hogan, CityPlanningDepartJnent Pechanga Legal DepartJnent Peclzanga Cultural Resources' Temecula Baud of Luisefio Affssionll1diaJ1s Post CJffice Box 2183' Temecllla, CA 92592 Sacred L, The Duty Trusted Unto Gur Care And With Honor We Rise To The Need ATTACHMENT NO.7 INITIAL STUDY G:\Planning\2006\PA06-0370 PHS Tentative Map (TTM35181)\Planning\PC\PC STAFF REPORT. doc 19 City of Temecula Planning Department Notice of Proposed Negative Declaration PROJECT: A Development Agreement (PA07-0220), General Plan Amendment (PA07- 0048), Tentative Tract Map No. 35181 (PA06-0370), and Development Plan (PA06-0369) with a Minor Exception (PA07-0090) APPLICANT: Temecula Properties, LLC LOCATION: Located at the northwest corner of Dendy Parkway and Winchester Road DESCRIPTION: A Development Agreement, General Plan Amendment, Tentative Tract Map, and Development Plan with a Minor Exception for a 608,934 square foot industrial building on 32 acres, and for the future development of the remaining 52 acres to include industrial,commercial, retail., high-density re$idential, and/or public institutional facility land uses 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 Director of Planning intends to adopt a Negative Declaration for this project. The mitigation measures required to reduce or mitigate the impacts of this project on the environment are included in the project design and/or the Mitigation Monitoring Program which is attached to this Notice and will be included as part of the Negative Declaration for this project. The Comment Period for this proposed Negative Declaration is August 4, 2007 to September 3, 2007. 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: The Local Newspaper if Posting the Site if Notice to Adjacent Property Owners If you have any questions rycerning this project, please contact Dana Schuma at (951) 694-6400. Prepared by: t4( J Ii~. .' Dana Schuma. Associate Planner (Signature) (Title) G:\Planning\2006\PA06-0370 PHS Tentative Map (TTM35181)\Planning\CEQA\NOI.doc 1 ofTJ<\fec &"" "<,. ~~ -.....,9'09/,r City of Temecula I PA06-0370 I -,"---- '.\ ), '~, ,/ " '.' :/ ., , 'v \^\' )< i:', " ,,,{./';-'''-' .",. ''-,# ,;~~" ~";." ~~![~jft~}ff,0~27(1~e\f/ . r Project Site" ::-':"-';1' i:' I' \ ,-, '-':\;-' <,<::">'. "~.~: -'.'" '......, ,. ,-~;.? I~l ,I,' -r, ----- - -_-___::~ -~---:--:i:;:-.;:_- ' :) Legend o 600 1,200 2,400 3,600 po,j J Feet ,'- ThiS map was made by the City of Temecula GeographiC Information System The map IS denved from base data produced by the Rwerslde County Assessor's Department and the Transportation and Land Management Agency of Riverside County The City of Temecula assumes no warranty or legal reSDonslblhty for the Informabon contained on thiS map Data and Information representeJ 011 thiS map are subJect to update and modilicabon. The GeographiC Information System and other sources should bequened for the most current information This map IS not for repnnt or resale R \GIS\AaronMISMS Templateslsms_template mxd ~, 'V.,r, " '4; s":> ' ':1-, &-0 ~ ~ {'~11/ ;~O ~'\, '" \ k ~ ~<' ',- ,'';.i "~~. 'y7'~;"\ \..i:: / , ",'" '\'1"& ." " /'r~.y '(;';\'Y-- ( / >"' ~-1t-" ,., __L<:, ~'f~(~):,~<"-7" ~, 'y &'.... '<\, V'/'\ A~, '~-' \,-' ~0'\..>(> ty,,->tl '" "" / \ ' ;; '(.' :,('>~k.,.' '" ,// '-'v ~$" ( (,.' 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L..- - ---~ ~--C'~ " /\ \" ' , \.~. "\\ \-- _\_""1" ..'-. ./ /~, /"-' './ ... ro g,- .~ " ~, " / '/ ... ./ , QO' /, ,nJ", , " -\'f!" , , 1 . , ;p.Q~/ )'"'. //~"" / ,Y. ' '// ., , F /~y ~ ....y '.... 7 ,,/',' ,/ y :\- '../' ~\f - / ,( I. .... "\ \ro \! 500 -7// "I Ii \\\ 2,000 '. 3,060 4,000 ,Feel 1,000 City of Temecula P.O. Box 9033, Temecula, CA 92589-9033 Project Title Lead Agency Name and Address Contact Person and Phone Number Project Location Project Sponsor's Name and Address General Plan DesiQnation ZoninQ Description of Project Environmental Checklist Development Agreement between Professional Hospital Supply (PHS), the Garrett Group, and the City of Temecula, a Generai Plan Amendment, a Tentative Tract Map, and a Development Pian City of T emecula P.O. Box 9033, Temecuia, CA 92589-9033 Dana Schuma, Associate Planner (951) 694-6400 Generally located at the northwest corner of Winchester Road and Dendy Parkway in the City of Temecula, County of Riverside, California The Garrett Group One BetterWorld Circle Temecula, CA. 92590 Industrial Park (IP) LiQht Industrial (L1) Temecula Properties LLC is applying to the City of Temecula for a Development Agreement (PA07-0220) and General Plan Amendment (PA07-0048), which will authorize the development of an approximate 84 acre property generally located at the northwest corner of Winchester Road and Dendy Parkway in the City of Temecula. A Tentative Tract Map (TTM 35181, PA06-0370) will subdivide the approximate 84 acre site into four developable parcels and one 16-acre easement parcel for slope and drainage purposes. A future Specific Plan will define the anticipated land uses and development standards for three of the four developable parcels. The Specific Plan will accommodate for future industrial, commercial, retail, high-density residential, and/or public institutional facility land uses on the three parcels totaling approximately 45 acres. A Development Plan (PA06-0369) for Parcel 4 proposes a new industrial medical distribution facility for Professional Hospital Supply (PHS) Corporation on approximately 30 acres. The entire project site is located in an urbanized area surrounded by industrial and commercial land uses. The Development Plan for Parcel 4 will allow PHS to expand their operations onto this site from another location in the City. The proposed plan provides for a development of up to 608,934 square feet of building area. The project will consist of a three-story industrial building for office and warehouse/distribution use, and a 400 square foot pump house. Primary access to the' proposed development will be provided via an entrance off of Dendy Parkway, with secondary access provided via an entrance off of a proposed extension of Remington Avenue. Parking to accommodate the proposed development will be accomplished by 399 surface parking spaces. The precise site layout, including the appearance of the buildings and facilities for Parcels 1, 2, and 3 created by TTM 35181 will be determined at a later date with subsequent entitlement applications. G:\Planning\2006\PA06-0370 PHS Tentative Map (TTM35181 )\Planning\CEQA\lnitial Study - PHS.doc 1 Surrounding Land Uses and Setting The Development Agreement and General Plan Amendment only authorize the overall development of these parcels. The future Specific Plan will specify the exact land uses for each of the parcels. Development plans for the individual parcels will be subject to a City develooment review process. The project site is surrounded by undeveloped property to the north, east, and west, and industrial development to the south. The property located directly to the east is the Temecula Redevelopment Agency's property. See Attachment B Other public agencies whose approval None is required y~ ";" / ~. .../ I I~/ .\\ .rj/ ~I~',,:.c, Sic. .~ /,/; '~ !~--:"v~ / " ~. j I J(1";')~b\ ,~~r-0~ .r'\, '.r ,/' ~ i~->:. ~ t,~('/ / "-."\" ", r~ ;_/~\, - / /'/f'~r'\ \ ~\/ "\.:., G:\Planning\2006\PA06-0370 PHS Tentative Map (TTM35181 )\Planning\CEQA\lnitial Study - PHS. doc 2 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. 1-/ 1 1-/ 1-/ 1-/ 1-/ 1 1 1 1 1-/ I 1 1 Mineral Resources 1 Noise I Population and Housinq Public Services I Recreation T ransportation/T raffic Utilities and Service Systems Mandatory Findinqs of Siqnificance I None Aesthetics Agriculture Resources Air Quality_ Bioloqical Resources Cultural Resources Geoloqy and Soils 1 Hazards and Hazardous Materials I Hydroloqy and Water Quality Land Use and Planninq 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 environment, 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 required. 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 required, but it must analyze 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 project, nothinq further is required. ,.7 V/I), (;//~/ (/~~ Sig'miture V ? II /jj-- Date rJ ~A_~ /. fl b ff1 ~ Printed Name Citv of Temecula For G:\Planning\2006\PA06-0370 PHS Tentative Map (TTM35181 )\Planning\CEQA\lnitial Study - PHS.doc 3 1. AESTHETICS. Would the project: I a. b. Issues and Suoqortinq Information Sources Have a substantial adverse effect on a scenic vista? Substantially damage scenic resources, including, but not limited to, trees, rock outcrop pings, and historic buildings within a state scenic highway? Substantially degrade the existing visual character or guality of the site and its surroundings? Create a new source of substantial light or glare which would adversely affect day or nighttime views in the area? Potentially Significant Impact Potentially Significant Unless Mitigation Incarcorated -/ Less Than Significant Impact No Impact ,,' I c. d. -/ -/ Comments: 1.a. Potentially Significant Impact Unless Mitigation Incorporated: The project could potentially affect a scenic vista. The project site is located within an urbanized area directly adjacent to an open space hillside. The entire 84 acres is currently undeveloped land. Implementation of the proposed project would convert a vacant hillside into a mix of development with supporting parking facilities and landscaping. The location and elevation of the developable parcels as well as the proposed 608,934 square foot building for PHS could potentially block visibility to portions of the hillside; therefore, impacting public views of the hillside and the open space area. To address this concern, Section 17.08.070 of the City Development Code provides performance standards and criteria for the design of commercial/office/industrial buildings within the City, recognizing that the quality and compatibility of building design directly impacts the health, safety and welfare of the residents of the community. These performance standards include strategies for minimizing visual impacts of commercial/office/industrial development through a variety of building design elements. The project will also be required to comply with the height and landscape standards in the Development Code. The maximum building height for the LI zone is 50 feet and a minimum 20 percent of the site shall be landscaped. Quality landscaping has the potential to significantly reduce potential visual impacts from development. In addition, the General Plan Community Design Element implements hillside grading and site design requirements that help to preserve the integrity of natural slopes. The following supplemental measure will be implemented as part of the mitigation monitoring program to minimize the visual and aesthetic impacts from this project to a less than significant level. Mitioation 1. To ensure that the scale and character of proposed development along the hillside does not detract from the natural views, all structures associated with the development shall be designed in conformance with the General Plan requirements and Development Code standards. Specifically, the visual mass of the buildings along the hillside shall be reduced through breaks in the structure, tree plantings, articulation of the fa9ade, and other architectural devices. 1.b. No Impact: The project site has no major scenic resources including trees, rock outcroppings or historic buildings which exist on the project site. The proposed project is not located on or near a scenic highway. There will be no impact to any scenic resources from the proposed facility. 1.c. Potentially Significant Impact Unless Mitigation Incorporated: Approximately 54 acres of the prOject site have been previously graded. The remaining 32 acres of the project site consist of undeveloped land. In its current undeveloped and unimproved state, the site has low visual quality. Implementation of the proposed project will alter the visual character of the site through a mix of G:\Planning\2006\PA06-0370 PHS Tentative Map (TTM35181 )\Planning\CEQA\lnitial Study - PHS.doc 4 development with supporting parking facilities and landscaping. If not well designed, the development could significantly degrade the existing visual character or quality of the site and its surroundings. Potential degradation of the existing visual character or quality of the site and its surroundings can be mitigated to a less than significant level through design measures. Both the mitigation listed under Item 1.a above and the mitigation listed below will reduce future visual impacts. Mitioation 2. The development shall be designed to minimize detrimental impacts on surrounding properties, including, but not limited to, visual, noise, air quality and other environmental impacts. Strategies for minimizing the impacts include protecting any future residential areas adjacent to industrial and commercial development through screening of circulation areas, loading areas and trash collection points or other areas that could potentially be disruptive to the character of the adjacent areas. 1.d. Less than Significant Impact: The business park lighting, and parking lot and street lighting would be typical of other development in the surrounding area and would not create unusual levels of light and glare. The proposed project will be developed consistent with the standards established in the City's Development Code, Section 17.24.050.F which states that, "lighting of outdoor parking areas shall be designed and maintained in a manner to prevent glare or direct illumination from intruding into... [adjacent properties]." The proposed project lighting design and landscaping will assist in minimizing the effects of increased light and glare in that the lighting on the site will be shielded and directed downward, and landscaping will help to screen exterior building light. Development associated with the proposed project will also be consistent with Ordinance No. 655 (Ordinance Regulating Light Pollution), which includes lighting standards to avoid negative impacts on astronomical research at MOunt Palomar Observatory. The lighting standards of Ordinance No. 655 include provisions for restricting the light source, light projection, hours of light operation and outdoor displays areas for all projects within a 45 mile radius of Mount Palomar Observatory. Project consistency with City Ordinance No. 655 will reduce the potential for significant impacts on the Observatory to a less than significant level. G:\Planning\2006\PA06-0370 PHS Tentative Map (TTM35181)\Planning\CEQA\lnitial Study - PHS.doc 5 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 Dept. of Conservation as an optional model to use in assessing impacts on agriculture and farmland. Would the project: a. Issues and SUDDortinq Information Sources I Convert Prime Farmland, Unique Farmiand, or Farmland of Statewide Importance (Farmland), as shown on the maps prepared pursuant to the Farmland Mapping and Monitoring Program of the California Resources Agency, to non-aqricultural 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-aqriculturai use? Potentially Significant Impact Potentially Significant Unless Mitigation Incorporated Less Than Significant Impact No Imoact if lb. if c. if Comments: 2.a-c. No Impact: 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. The site is not under a Williamson Act contract nor is it zoned for agricultural uses. In addition, the project will not involve changes in the existing environment, which would result in the conversion of farmland to non-agricultural uses. No impact is anticipated as a result of the proposed project. G:\Planning\2006\PA06-0370 PHS Tentative Map (TTM35181)\Planning\CEQA\lnitial Study - PHS. doc 6 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: I a. b. c. I d. Ie. Issues and SUDoortinq Information Sources Conflict with or obstruct implementation of the applicable air quality plan? Violate any air quality standard or contribute substantially to an existinq or projected air <]uality 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 precursors)? Expose sensitive receptors to substantial pollutant concentrations? Create objectionable odors affecting a substantial number I of people? Potentially Significant Imoact Potentially Significant Unless Mitigation Incarcorated No Imoact Less Than Significant Imoact ./ ./ ./ ./ ./ Comments: 3.a. Less than Significant Impact: The project proposes a 608,934 square foot industrial medical supply warehouse (including 82,476 square feet of office use), and approximately 178,000 square feet of future commercial retail uses, 31,200 square feet of future office uses, a small percentage of high density residential, and/or public institutional facilities to be defined and further analyzed in a future Specific Plan. An Air Quality Impact Analysis Report prepared dated October 20, 2006 was prepared for the project by Urban Crossroads. The analysis report evaluated the air quality impacts associated with the proposed 84 acre development. The project is located in the South Coast Air Basin within the jurisdiction of the South Coast Air Quality Management District (SCAQMD). The project is therefore subject to the SCAQMD's Air Quality Management Plan (AQMP). The AQMP establishes thresholds to assist lead agencies in determining whether construction and/or operation of a project will have significant air quality impacts. The AQMP contains a comprehensive list of pollution control strategies directed at reducing emissions and achieving ambient air quality standards. These strategies are developed, in part, based on regional population, housing, and employment projections in the Regional Comprehensive Plan (RCP) prepared by the Southern California Association of Governments (SCAG). With regard to air quality planning, the RCP projections form the basis for the land use and transportation control portions of the AQMP, and are utilized in the preparation of air quality forecasts and consistency analysis included in the AQMP. Since the RCP and AQMP strategy is based on projections from local General Plans, projects proposing a General Plan Amendment (GPA) require a consistency review with the AQMP. The City of Temecula General Plan EIR assumed that development would occur on the subject site consistent with the General Plan land use designation of Industrial Park (IP). The General Plan designation is implemented through the City's LI (Light Industrial) zoning designation. The General Plan EIR analyzed the impacts from potential uses in the LI zone. The project proposes a General Plan Amendment to designate the site as a future Specific Plan Area. The future Specific Plan Area will accommodate uses anticipated for Parcels 1 through 3, and impacts anticipated from future uses will be analyzed under the future Specific Plan. The development of Parcel 4 will be consistent with the G:\Planning\2006\PA06-0370 PHS Tentative Map (TTM35181)\Planning\CEQA\lnitial Study - PHS. doc 7 underlying industrial land use designation used to forecast air quality impacts for the ddvelopment. Additionally, the General Plan Air Quality Element encourages mixed-use projects, and development and expansion of businesses while also promoting development of housing affordable to all segments of the community near job opportunity sites and within mixed use areas to ensure that future land use patterns and traffic increases are accompanied by measures to improve air quality. According to the Air Quality Analysis Report, the project will not conflict with or obstruct impiementation of the applicable Air Quality Management Plan (AQMP) when all available emission reduction strategies are implemented as effectively as possible. Furthermore, the project will comply with the provisions of the Air Quality Management Plan (AQMP) 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 Impact Unless Mitigation Incorporated: For project related emissions, the URBEMIS model was used to forecast emission levels for both short term construction activities and long term operational activities (Air Quality Impact Analysis Report prepared by Urban Crossroads, October 20, 2006). The proposed project will result in short-term dust and exhaust emissions during the project construction phases. Construction related emissions are expected from rough grading, underground utility construction, paving, building construction, architectural coatings, and construction workers commuting. Under the assumed worse case construction conditions, in which equipment was operated on average for eight hours per day, the project will result in emissions that would exceed regional criteria pollutant thresholds established by the SCAQMD for emissions of Volatile Organic Compounds (VOC), Nitrogen Oxides (NOx), and Fine Particulate Matter (PM1O). After the recommended emissions reduction measures are implemented, the short term construction impacts will not have a significant effect and are therefore not expected to result in a cumulatively significant impact during short term construction activity. For long-term operational activity the project will not have a significant air quality impact as defined by either Localized Significant Threshold or regional daily emission thresholds set forth by the SCAQMD. Operational related emissions would be expected from vehicle emissions, fugitive dust related to vehicle travel, combustion emissions associated with natural gas use, landscape maintenance equipment emissions, and architectural coatings. Since the project is not expected to exceed the emissions thresholds set forth by the SCAQMD it is assumed that the project and other cumulative developments will not result in cumulatively significant impact during operational activity. Local area Carbon Monoxide (CO) concentrations were projected using the CALlNE-4 air quality model. Ambient CO concentrations w~re combined with CO concentrations generated by vehicle traffic at individual intersections to determine total intersection CO contributions from the proposed project. The intersections with the highest potential for CO hotspot formation were selected for analysis based on Level of Service (LOS), high project-related traffic volumes (available from the Traffic Impact Analysis Report prepared by Urban Crossroads, October 20, 2006), and the proximity of this traffic to sensitive receptors. The intersections analyzed for CO concentration at project buildout were Diaz Road (NS) at Winchester Road (EW), Enterprise Circle (NS) at Winchester Road (EW), and Jefferson Avenue (NS) at Winchester (EW). Based on the impact analysis, none of these locations are projected to experience CO levels in excess of the allowable concentration of 20.0 ppm. Since significant impacts would not occur at intersections with the highest potential for CO hotspot formation, no significant impacts are anticipated to occur at any other locations in the project vicinity as a result of the proposed project (Air Quality Impact Analysis Report, 2006, page 4-19). Based on the analysis, the proposed project may potentially violate an air quality standard or contribute substantially to an existing or projected air quality violation and 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 from project related construction activities. Emissions reduction measures, including dust control and equipment condition, will be implemented as part of the G:\Planning\2006\PA06-0370 PHS Tentalive Map (TTM35181 )\Planning\CEQA\lnitial Study - PHS.doc 8 mitigation monitoring program to reduce impacts to a less than significant level (Air Quality Impact Analysis Report, 2006, page 5-1). The impacts to air quality standards will be reduced to a less than significant level with implementation, monitoring, and enforcement of the following mitigation measures. ' Mitiaation 3. Adhere to best management practices which include the application of water on disturbed soils twice daily, covering haul vehicles, replanting disturbed areas as soon as pra;;tical and restricting vehicle speeds on unpaved roads to 15 mph to control fugitive dust. 4. Trucks hauling dust, sand, gravel, or soil are to be covered or should maintain at least two feet of freeboard in accordance with Section 23114 of the California Vehicle Code. 5. During site grading, underground, and building activity construction, the contractor shall adhere to SCAQMD Rule 431.2 (diesel fuel with sulfur content of 15 ppm by weight or less). 6. During construction, off-road construction equipment shall be maintained in good condition and in proper tune as per manufacturers' specifications and restrict diesel equipment idling to no more than five minutes. 7. Limit application of paint to 50 gallons per day and use of Zero-VOC paints (assumes no more than 150 gram/liter of VOC). 3.d. Less Than Significant Impact: The proposed project uses do not contain any AQMD permitted stationary emissions sources. There are currently no existing or proposed sensitive receptors in close proximity to the proposed project. Future uses however do indicate the potential for sensitive land uses, such as residences, schools, or athletic facilities, to be located adjacent to the project site; however, impacts anticipated from future uses will be analyzed under the future Specific Plan. In general, the primary pollutant of concern with regard to harmful pollutant concentrations resulting from development projects is CO. As described above, construction and operation of the proposed uses would not result in any substantial local or regional air pollution impacts and, therefore, would not expose any nearby sensitive receptors to severe air pollution conditions. Impacts would be less than significant and no mitigation measures are required. 3.e. Less Than Significant Impact: The proposed uses for the site are not considered land uses that would generate significant odor impacts. No construction activities, materials, or daily activities are proposed which would create objectionable odors. Certain amounts of odors will be generated from vehicles tailpipe exhaust emissions during construction and operation. These odors would be attributable to emissions from unburned hydrocarbons from tailpipes which are typically very small. Lastly, any odor impact generated during construction activities would be short term in nature and cease upon completion of the respective phase of the project. As a result, odor impacts associated with the proposed project are anticipated to be less than significant. G:\Planning\2006\PA06-0370 PHS Tentative Map (TTM35181)\Planning\CEQA\lnitial Study - PHS,doc 9 4. BIOLOGICAL RESOURCES. Would the project? a. b. c. d. e. f. Issues and SUD~ortino Information Sources 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, filling, hydrological interruption, 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 preservation policy 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 plan? Comments: Potentially Significant Impact Potentially Significant Unless Mitigation Incorporated if No Impact Less Than Significant Impact if if if if if 4.a-b. Potentially Significant Impact Unless Mitigation Incorporated: The applicant submitted a complete Biological Technical Report for the proposed project detailing the biological resources present on the 84 acre site (Biological Technical Report for Temecula 84 Project by Helix Environmental dated March 23, 2007). The 52-acre portion of the project site has already been graded and contains no biological resources or any habitat suitable to support candidate, sensitive, or special status species. However, the 32-acre portion of the project site is relatively undisturbed and biological resources are present. The proposed project would result in impacts to approximately 16.65 acres of sensitive vegetation, including 2.98 acres of Diegan coastal sage scrub, 0.37 acre of southern mixed chaparral, 0.92 acre of scrub oak chaparral, 0.17 acre of native grassland, and 12.21 acres of non-native grassland (Figure 7; Table 8 of the Biological Technical Report). The proposed project would also result in off-site impacts to 0.02 acre of disturbed wetland, 0.15 acre of non-native grassland, and 0.06 acre of disturbed habitat (Figure 7; Table 8 of the Biological Technical Report). These impacts are considered significant. The project proposes to preserve a total of 17.82 acres comprised of 1.18 acre of Diegan coastal sage scrub, 9.92 acres of southern mixed chaparral, 5.25 acres of scrub oak chaparral, 0.04 acre of native grassland, 0.97 acre of non-native grassland and 0.46 acres of disturbed habitat. G:\Planning\2006\PA06-0370 PHS Tentative Map (TTM35181)\Planning\CEQAllnitial Study - PHS.doc 10 The project is within the Multiple Species Habitat Conservation Program (MSHCP) Burrowing Owl (Athene cuniculBria) Survey Area. Burrowing owl surveys were conducted in 2006 and 2007 in accordance with the Burrowing Owl Survey Instructions for the Western Riverside Multiple Species Habitat Conservation Plan Area (Updated Burrowing Owl Survey Results for the Temecula 84 (formerly known as Temecula 32) Property by Helix Environmental dated March 23, 2007). No burrowing owl or sign of burrowing owl was observed on site or within 500 feet of the site. The site is not occupied by burrowing owl. No burrowing owl was observed during the focused surveys of the site. However, the property contains suitable habitat and therefore potential for affecting burrowing owls indirectly. A pre- construction burrowing survey is required within 30 days prior to ground disturbance by the project. The project will impact 0.02 acre of Corps jurisdictional habitat (ephemeral drainage, non-wetland waters of the U.S.) and 0.06 acre of California Department of Fish & Game (CDFG) jurisdictional habitat and permits will be required. However, those jurisdictional areas do not meet the MSHCP definition of Riparian/Riverine habitat and a Determination of Biologically Equivalent or Superior Preservation (DB ESP) analysis was not required. No threatened or endangered plant species were observed on site. The project is not within the Western Riverside County Multiple Species Habitat Conservation Plan (MSHCP) Narrow Endemic Plant Species Survey Area or Criteria Area Species Survey Area; therefore, focused plant surveys are not required. The federally listed endangered Least Bell's Vireo (Vireo bellU pusillus) was observed foraging within the southern mixed chaparral in the northwest corner of the site for approximately one minute. Those two birds were subsequently observed flying off site to the north. No suitable nesting habitat for the vireo is present on or adjacent to the site. Based on their vocalizations and behavior, and the time of year observed, the two individuals were determined to be first-year birds that were dispersing through the area and not resident on the site. Suitable nesting habitat is present approximately 0.5 :nile north of the project site within Murrieta Creek. The proposed project is not expected to have any impact on Least. Bell's Vireo. Implementation of the project would therefore have a substantial adverse effect, either directly or through habitat modifications, on several species identified as a candidate, sensitive, or of special status. 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 will also be impacted. Mitigation is recommended for these potential impacts. The indirect biological impacts will be reduced to a less than significant level with implementation, monitoring, and enforcement of the following mitigation measures. Mitioation 8. A pre-construction burrowing owl survey is required 30 days prior to commencement of construction. If any burrowing owl is found on site, the CDFG shall be consulted, and a passive relocation effort shall be undertaken outside of the nesting season. No disturbance of active nests will occur. 9. A qualified biologist shall determine if any active raptor nests occur within the limits of disturbance prior to commencement of grubbing, clearing, or grading activities. 10. No brushing, clearing, or grading shall occur within 500 feet of occupied tree-nesting raptor habitat during the raptor breeding season (typically December to July). 11. In order to ensure Migratory Bird Treaty Act (MBTA) compliance, clearing of native vegetation shall occur outside the breeding season of most avian species (February 1 through September G:\Planning\2006\PA06-0370 PHS Tentative Map (TTM35181 )\Planning\CEQA\lnilial Study - PHS.doc 11 15) unless a pre-construction nesting bird survey determines that no nesting birds are present. The City of Temecula would need to approve activities after concurrence is received from the wildlife agencies. 12. Lighting within the proposed project adjacent to preserved habitat shall be of the lowest illumination allowed for human safety and selectively placed, shielded, and directed away from preserved habitat. 13. Impacts to upland habitats and associated species will be addressed through participation in the MSHCP and payment of the MSHCP Local Development Mitigation fees. The project is located within the Riverside County Stephens' kangaroo rat Habitat Conser\tation Plan (HCP) Fee Assessment Area. 4.c. Potentially Significant Impact Unless Mitigation Incorporated: The applicant submitted a complete Jurisdictional Delineation Report for the proposed project site (Jurisdictional Delineation fur Temecula 84 Project dated June 26, 2006 by Helix Environmental). There are jurisdictional waters of the state and U.S. on the project site. The report mapped existing areas under U.S. Army Corps of Engineers jurisdiction pursuant to Section 404 of the Clean Water Act (33 U.S.C. 1344), and wetland and streambed habitats under California Department of Fish and Game (CDFG) jurisdiction pursuant to Section 1600 of the Fish and Game Code. This information was necessary to evaluate jurisdictional impacts and permit requirements associated with proposed construction on the subject property. The proposed project will not affect any wetlands on site and vt;lrnal pools are not present on site. However, the project will impact 0.02 acre of Corps jurisdictional habitat (ephemeral drainage, non- wetland waters of the U.S.) and 0.06 acre of CDFG jurisdictional streambed habitat. Therefore, implementation of the project will result in a substantial adverse effect of federally protected waters as defined by Section 404 of the Clean Water Act and the following mitigation is recommended. The impacts to federally protected wasters will be reduced to a less than significant level with implementation, monitoring, and enforcement of the following mitigation measures. Mitiaation 14. Both Federal Clean Water Sections 404 and 401 permits and a 1602 Streambed Alteration Agreement are required. Copies of all required permits shall be provided to the City prior to the start of construction and full compliance with all of the terms and conditions of those permits and agreement is required. 15. Impacts to jurisdictional areas will be mitigated through a 1: 1 ratio through off-site creation or purchase of wetland credits within an approved wetland mitigation bank. 4.d. Less than Significant Impact: The proposed project site lies within MSHCP Proposed Linkage 10 and is therefore identified for conservation. The adjoining 52-acre parcel to the northwest (APN 909- 370-018) was also identified for conservation as part of Proposed Linkage 10. However, that parcel has already been graded and contains no biological resources or any habitat suitable to support any MSHCP-covered species. Consequently, the subject parcel is currently bordered by developed property to the north, south and east and would not function as a wildlife corridor. In addition the alignment of the Western Bypass, an approved Circulation Element roadway, extends along the eastern portion of northern border of the adjacent 52-acre parcel and turns southeast and extends through the subject parcel. The Western Bypass would also preclude the assembly of Proposed Linkage 10 on the southerly portion of the property. The City informed the County of Riverside of the approved Western Bypass during MSHCP preparation and has planned for this type of industrial/commercial use of the subject property as part of the General Plan. The Western Bypass is an approved Circulation Element roadway that is a covered project G:\Planning\2006\PA06-0370 PHS Tentative Map (TTM35181 )\PlanningICEQAllnltial Study - PHS.doc 12 generally described in MSHCP Section 7.3.5 (Planned Road within the Criteria Area) and specifically shown on Figure 7.1 (General Plan Circulation Element with Criteria Area). The Regional Conservation Authority (RCA) has informed the City that it considers all of the project site area east of the Western Bypass to be part of the covered project and consequently the entire Professional Hospital Supply site is covered under the MSHCP and no conservation is required. However, the project is subject to the MSHCP Local Development Mitigation Fee. The proposed project will not therefore 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 and no impact is anticipated as a result of the proposed project. 4.e. No Impact: The proposed project will not conflict with any local policies or ordinances protecting biological resources, such as a tree preservation policy or ordinance. No impact is anticipated as a result of the proposed project. 4.f. Less than Significant Impact: On September 22, 2006, the applicant submitted a complete Habitat Acquisition and Negotiation Strategy (HANS) Application and Analysis for the proposed project site. The property is located within Independent Criteria Cells 6781 and 6888 of Subunit 6 (Santa Rosa Plateau) of the Southwest Area Plan. The project site falls within Proposed Linkage 10 and is therefore identified for conservation. According to the MSHCP, conservation within Cell 6781 will range from 35 to 45 percent, focusing in the Cell's southwestern portion. Conservation within Cell 6888 will range from 55 to 65 percent, focusing in the Cell's southwestern portion. The proposed project site lies within the southern half of Cell 6781 and the northern half of Cell 6888. Based on the following list, t:,e project is consistent with the MSHCP and therefore impacts are anticipated to be less than significant as a result of the project. . Seven MSHCP-covered species (coastal western whiptail, least Bell's vireo, Cooper's hawk, coyote, bobcat, rufous-crowned sparrow, and San Diego black-tailed jackrabbit) were observed/detected on site. Habitats of six of the seven sensitive animal species would be adversely affected by the proposed project. Those impacts are adequately mitigated under the coverage of the MSHCP. No suitable habitat for vireo occurs on site, even though the species was briefly observed foraging on site during one site visit; . The project will implement the identified avoidance and conservation measures in accordance with Section 6.1.4 (Urban/Wildlands Interface); . The proposed project will be in full conformance with Section 6.1.2 (Riparian/Riverine Areas and Vernal Pools) because none are present on site; . The proposed project will be in full conformance with Section 6.1.3 (Narrow Endemic Plant Species) because the site is not within the MSHCP NEPSSA and none were observed during the biological,survey; . The proposed project will be in full conformance with Section 6.3.2 (Database Updates/Additional Survey Requirements). The site is not within the MSHCP's Critical Area Species Survey Area (CASSA) for plant species and none were observed on site. The only focused animal survey required on the site for sensitive animal species is for the burrowing owl. Focused burrowing owl surveys were conducted in 2006 by HELIX with negative results. A pre- construction burrowing owl survey is required 30 days prior to commencement of construction. If any burrowing owl is found on site, the CDFG shall be consulted, and a passive relocation effort shall be undertaken outside of the nesting season. No disturbance of active nests will occur. G:\Planning\2006\PA06-0370 PHS Tentative Map (TTM35181 )\Planning\CEOA\lnitial Study - PHS,doc 13 I a. lb. I c. I d. 5. CULTURAL RESOURCES. Would the project: Issues and SUDoortinq Information Sources I 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 archaeoloqical resource pursuant to Section 15064.5? Directly or indirectly destroy a unique paleontological resource or site or unique qeoloqic feature? I Disturb any human remains, including those interred outside of formal cemeteries? Potentially Significant Imoact Potentially Significant Unless Mitigation Incorporated -/ No Impact Less Than Significant Impact -/ -/ -/ Comments: 5.a-b,d.Potentially Significant Unless Mitigation Incorporated: The City of Temecula General Plan (April 12,2005) does not identify the project site as a sensitive archaeological resource area. However, the University of California, Riverside Eastern Information Center (EIC) has record of the project area being previously examined in the course of several previous studies. The previous studies resulted in the recordation of three archaeological sites and identification of possibly a fourth cultural resources property not formally recorded. The 52-acre portion of the proposed project site was the subject of intensive archaeological testing and monitoring in 2005 as it overlies a known and mostly destroyed prehistoric archeological site, CA-RIV- 237 (Final Report on Prehistoric Site Boundary Testing and Survey of a Historic Homestead at CA-RIV- 237/H, Cogstone Resource Management lnc., October 2005). The site has been extensively damaged over the years and no longer retains integrity under CEQA. However, resources are located in the northeastern portion of the site which are not to be disturbed in the future. The remainder of the site may be graded provided it is monitored by a qualified archaeologist and Native American monitor pursuant to the Cogstone 2005 Study. A Phase I archaeological and paleontological resources report was conducted for the 32 acre portion of the project site in August 2006 and revised in February 2007 (Archaeological and Paleontological Assessment Report, Cogstone Resource Management, Inc., August 2006; revised February 2007). No archaeological sites have been previously recorded within boundaries of the 32 acre parcel. However, based on research in the Temecula Valley and the proximity of the site to reliable water, ecozones, and a wide viewshed, the project area would appear to be a favorable settlement area and likely location for prehistoric occupation. During the survey a lithic scatter was observed on a level portion of the grassy terrace in the eastern part of the project area. Three quartzite flake artifacts associated with the manufacture of prehistoric chipped stone tools were recorded during the survey. As a result of the assessment findings, the proposed project could potentially impact cultural resources and a phase II archaeological testing program was recommended. The Ph"se II archaeological report (Archaeological Testing Program, LSA Associates, Inc., March 2007) was conducted to detect and evaluate any subsurface archaeological deposit. To determine the presence and significance of buried cultural resources, the program allowed for surface collection, shovel test pit (STP) excavation, one-by-one meter test excavation, and laboratory analysis in and around the reported location of the lithic scatter. The assessment did not yield any artifacts during the testing at the reported site; therefore, LSA recommended that .the site not be considered "a unique archaeological resource" or "historical resource" under CEQA. G:\Planning\2006\PA06-0370 PHS Tentative Map (TTM35181)\PlanningICEQA\lnltial Study - PHS.doc 14 The Pechanga Band of Luisefio Indians ("Tribe") is concerned that other areas of the site require further testing. The Tribe states that, according to Tribal knowledge, resources exist on other areas of the site that were not tested and that the testing for subsurface resources (the lithic scatter) did not occur in the correct location. Therefore, further testing prior to grading is required per mitigation measure ,no. 17 below. Due to the fact that construction projects in the area have identified significant archaeological sites during earthmoving activities and based on findings from the cultural assessments, the project has potential to cause a substantial adverse change in the significance of a historical or archeological resource as defined in Section 15064, and to disturb any human remains, including those interred outside of formal cemeteries. The following mitigation shall be required as part of the mitigation monitoring program to ensure proper treatment and disposition of any unknown cultural resources that may be inadvertently discovered during further excavation activities. The impacts to cultural resources will be reduced to a less than significant level with implementation, monitoring, and enforcement of the following mitigation measures. MitiClation 16. Prior to the issuance of a grading permit, the project proponent shall prepare an assessment of the archaeological and cultural resources on the 84 acre project site. The assessme;lt shall be performed by a qualified archaeologist in conjunction with the Pechanga Band of Luiseno Indians in order to determine whether there are cultural resources on the property and evaluate the significance of any such resources. Any such testing shall involve the Pechanga Tribe, and all tests to determine impacts should be completed prior to the issuance of grading permits. 17. Prior to the issuance of a grading permit, the project proponent shall conduct further cultural resources testing on the site in the areas which have been designated by the Pechanga Tribe as likely to contain cultural resources. Prior to the testing, the project proponent shall meet with representatives of the Pechanga Tribe and the City to determine the specific additional areas that shall be tested. Representatives of the Pechanga Tribe shall be present during the testing and the project proponent shall meet and confer in good faith with such Tribal representatives with respect to comments they may have on the testing. In the event additional mitigation measures are necessary as a result of cultural resources discovered the testing, the Director of Planning shall be authorized, following a Director's Hearing, to impose such new conditions or modify existing conditions as necessary to mitigate any additional cultural resources impacts which may be identified. 18. Prior to the issuance of grading permits, the project proponent shall enter into a Treatment Agreement with the Pechanga Band of Luiseno Indians. This agreement will address the treatment and disposition of cultural resources and human remains that may be uncovered during construction as well as provisions for tribal monitors. 19. Tribal monitors from the Pechanga Band of Luiseno Indians shall be allowed to monitor all grading, excavation and ground-breaking activities, including further surveys, to be compensated by the project proponent. The Pechanga Tribal monitors shall have the authority to temporarily stop and redirect grading activities to evaluate the significance of any archaeological resources discovered on the property, in conjunction with the archeologist and the Lead Agency. 20. A qualified archaeologist monitor shall be present during all earthmoving activities. The monitor shall be empowered to temporarily halt or redirect construction work in the vicinity of the find until it can be evaluated by the project archaeologist in conjunction with the Pechanga Tribe. In the event of a new find, further testing, excavation, and/or reporting may be required. G:\Planning\2006\PA06-0370 PHS Tentative Map (TTM35181 )\Planning\CEQA\lnitial Study - PHS.doc 15 ' 21. 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. 22. If human remains are encountered, all activity shall cease and the County Coroner must be notified immediately. State Health and Safety Code Section 7050.5 state that no further disturbance shall occur until the County Coroner has made a determination of the origin and until treatment pursuant to Public Resources Code Section 5097.98 has been decided. The Coroner shall determine if the remains are prehistoric, and shall notify the State Native American Heritage Commission (NAHC) if applicable. Further actions shall be determined by the desires of the Most Likely Descendent (MLD). 23. The landowner shall agree to relinquish ownership of all cultural resources, including all Luiseno sacred items, burial goods and all archeological artifacts that are found on the project site to the Pechanga Band of Luiseno Indians for proper treatment and disposition. 24. All sacred sites within the project area are to be avoided and preserved. 25. The %-acre of cultural site CA-RIV 237 located in the northeast corner of Planning Application PA06-0370 shall be preserved in Open Space and recorded with the County Recorder of Riverside County as a conservation easement for preservation purposed in perpetuity. The %- acre of CA-RIV 237 shall not be subject to development, archeological testing or ground- disturbing activities. 5.c. Potentially Significant Unless Mitigation Incorporated: The City of Temecula General Plan (April 12, 2005) identifies the site as a highly sensitive paleontological resource area. Results of the Paleontological Assessment conducted on the 32 acre parcel (Archaeological and Paleontological Assessment Report, Cogstone Resource Management, Inc., August 2006, revised February 2007) reinforce the high potential for encountering significant, nonrenewable vertebrate fossils. ihe report identified the presence of Pauba Formation sediments suitable to contain paleontological resources on site. The site is 95 percent within the fanglomerate member of the Pauba Formation which is of unknown potential to contain significant fossil resources. No fossils were observed during the survey. Based on the information provided in the assessment, potential impacts to paleontological resources can be reduced to a less than significant level with the incorporation of following mitigation. The impacts to paleontohJgical resources will be reduced to a less than significant level with implementation, monitoring, and enforcement of the following mitigation measures. Mitioation 26. A qualified paleontological monitor shall provide cultural resources sensitivity training (a 15 min. presentation) for all project personnel. 27. All impacts to the sandstone and fanglomerate members of the Pauba Formation shall be monitored full time at the beginning of grading. A trained paleontological monitor shall be present during ground disturbing activities within the project area determined likely to contain paleontological resources. Monitoring will be adjusted to spot checking if initial monitoring shows negative results. 28. Upon encountering any significant fossils, salvage of all fossils in the area shall be conducted with additional field staff and in accordance with modern paleontological techniques. 29. Any significant fossils recovered shall be prepared to a reasonable point of identification. Excess sediment or matrix will be removed from the specimens to reduce the bulk and cost of G:\Planning\2006\PA06-0370 PHS Tentative Map (TTM35181 )\Planning\CEOA\lnitial Study - PHS.doc 16 storage. Itemized catalogs of all material collected and identified shall be provided to the museum repository along with the specimens. 30. Prior to the issuance of a building permit, a report documenting the results of the monitoring and any salvage activities and the significance of the fossils shall be prepared. 31. Any significant fossils recovered, along with the itemized inventory of the specimens, shall be deposited in a museum repository for permanent curation and storage. 6. GEOLOGY AND SOILS. Would the project: Potentially Potentially Significant Unless Less Than Significant Mitigation Significant No Issues and SUDDortinq Information Sources Impact Incoroorated Imoact Imoact a. Expose people or structures to potential substantial adverse effects, including the risk of loss, injury, or death involvinq: i. The rupture of a known earthquake fault, as delineated v" 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 Geology Special Publication 42.) I ii. Stronq seismic wound shakinq? v" I iii. Seismic-related qround failure, includinq liquefaction? v" I iv. Landslides? v" lb. I 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, lateral spreadinq, subsidence, Iiauefaction 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 property? e. Have soils incapable of adequately supporting the use of v" septic tanks or alternative wastewater disposal systems where sewers are not available for the disposal of wastewater? Comments: 6.a.i-ii. Potentially Significant Unless Mitigation Incorporated: According to the City of Temecula General Plan (April 12, 2005) and the Riverside County Geologist, the project site is located within two fault zones: the eastern boundary of the project site is located within the Elsinore-Temecula Fault zone, and the western boundary of the project site is located within the Riverside County Fault zone. The Elsinore fault has historically experienced earthquakes of moderate magnitude. A geotechnical investigation (Preliminary Geotechnical Evaluation prepared by GeoTek, Inc. dated July 13, 2006) identifies the site as a likely area to be damaged as the result of ground shaking generated by nearby earthquakes and mitigation is required to reduce the risk of loss, injury, or death. The City of Temecula has adopted the California Building Code to insure structure integrity during seismic and other hazardous events, and to prevent personal injury, loss of life, and substantial property damage. Implementation of local building codes shall minimize the structural damage and risk associated with seismic events to a less than significant level of impact. G:\Planning\2006\PA06-0370 PHS Tentative Map (TTM35181 )\Planning\CEQA\lnitial Study~ PHS,doc 17 Mitioation 32. Seismically resistant structural design in accordance with local building ordinances shall be followed during the design of all structures. 33. Subsequent geotechnical reviews shall be conducted prior to the development of Parcels 1, 2, and 3 created by this project. 6.a.iii Less Than Significant Impact: As identified in the General Plan Safety Element, the project site is not located within a subsidence, liquefaction, expansive soil, or landslide hazard area. Section 5.5 on page 5 of the geotechnical investigation report (Preliminary Geotechnical Evaluation prepared by GeoTek, Inc. dated July 13, 2006) for the project site states that the secondary significant effects of seismic activity, including liquefaction, landsliding, and ground subsidence are considered less than significant at the site. The liquefaction potential on the site is considered to be low due to the relatively dense nature of the underlying stream terrace deposits and the lack of shallow groundwater. Evidence of ancient landslides or slope instabilities at the site was not observed during the geotechnical evaluation. Dynamic settlement at the site does not appear to be a concern at this site due to the relatively dense nature of the prevailing soil conditions. Tentative Map No. 35181 and the Development Plan have been conditioned to address the potential risk associated with seismic activity. The project is required to comply with all Conditions of Approval regarding geotechnical conditions for Tentative Map No. 35181 and the Development Plan for Parcel 4 (Condition of Approval Nos. 46 and 72, Prior to Grading Permit Issuance). Less than significant impacts associated with seismic-related ground failure, including liquefaction, ground subsidence, or landslides are anticipated as a result of the project. 6.b. Potentially Significant Unless Mitigation Incorporated: While the northeast portion of the project site has been previously graded, the remainder of the project site is currently vacant and u!ldeveloped. The proposed project has the potential to result in erosion of soils due to construction activities. Tentative Map No. 35181 and the Development Plan for Parcel 4 have been conditioned to address erosion of soils during all grading activities. This project will be conditioned to comply with Conditions of Approval regarding geotechnical conditions for Tentative Map No. 35181 and the Development Plan for Parcel 4. With implementation of the mitigation measures listed below, impacts associated with potential soil erosion or the loss of topsoil would be less than significant. Mitioation 34. Prior to the issuance of any grading permit, the Applicant shall submit to the Public Works Department an erosion control plan prepared in accordance with the requirements of the Temecula Municipal Code, Section 18.15, Erosion and Sediment Control. 35. Prior to the issuance of any building permit, landscape plans shall be prepared for all slopes created by the grading and fill of these sites consistent with "Slope Planting Guidelines" and the Development Code, and shall provide erosion control on undeveloped portions of the site. 6c-d. Potentially Significant Unless Mitigation Incorporated: According to the Preliminary Geotechnical Evaluation prepared by GeoTek, Inc. dated July 13, 2006, the site is mantled with a layer of topsoil/colluvium materials varying between 1.5 to 7.5 feet in thickness. These materials are relatively loose and considered potentially compressible. The Quaternary Pauba Formation compromises the bedrock that underlies the site. The Pauba Formation is generally dense and suitable for structural support. Mesozoic-aged metasedimentary rock underlies the. Pauba Formation portions of the site. These materials are considered rippable with properly equipped and well-operated heavy duty grading equipment. The on-site soils materials are considered suitable for reuse as compacted fill provided that they are free from vegetation, debris, rocks larger than 6 inches in maximum dimension, and other deleterious material. Tentative Map No. 35181 and the Development Plan for Parcel 4 have been conditioned to address soil conditions. The project will be conditioned to comply with Conditions of Approval regarding geotec:hnical conditions. G:\Planning\2006\PA06-0370 PHS Tentative Map (TTM35181 )\Planning\CEQA\lnitial Study - PHS.doc 18 The Development Plan for Parcel 4 includes 1.5:1 cut slopes at the west side of project site. Based on a Slope Stability Analysis prepared by GeoTek, Inc. dated March 21, 2007, the proposed 1.5:1 cut slopes at the site are considered suitable from a geotechnical perspective. Based on the analysis, the calculated factors for safety for the static condition, and for the seismic condition, exceed industry standards. However, given that water has been shown to weaken the inherent strength of soil and compromise slope stability, additional measures should be implemented to ensure stability of the 1,5:1 cut slopes. With implementation of the mitigation measures listed below, impacts associated with unstable or expansive geologic unit or soil, including in on- or off-site landslide, lateral spreading, subsidence, liquefaction or collapse, would be less than significant. Mitioation 36. Prior to the issuance of any grading and building permit, the recommendations contained in soils report(s), geotechnical report, and slope stability report shall be implemented. 37. Plants selected for slope landscaping shall be light-weight, deep rooted type vegetations that require little water and are capable of surviving with little irrigation. 6.e. No Impact: The project site is located in an urbanized area in which wastewater infrastructure is currently in place. Therefore, the capacity of the soils to support septic tanks or alternative waste water systems is not relevant to the proposed project. No impact would occur and no mitigation measures , are required. G:\Planning\2006\PA06-0370 PHS Tentative Map (TTM35181 )\Planning\CEQA\lnitlal Study - PHS.doc 19 7. HAZARDS AND HAZARDOUS MATERIALS. Would the project: a. b. c. d. e. f. g. h. Issues and SupportinQ Information Sources 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 mile of an existin8 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 miles of a public airport or public use airport, would the project result in a safety hazard for people residing or workinq in the oroiect area? For a project within the vicinity of a private airstrip, would the project result in a safety hazard for people residing 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? Comments: Potentially Significant Impact Potentially Significant Unless Mitigation Incorporated No Impact Less Than Significant Impact v v v v v v v v 7.a,b. Less Than Significant Impact. The proposed project will not use, store, transport, generate, or dispose of substantial quantities of hazardous materials. Construction activities would involve the use of commonly used potentially hazardous materials, including vehicle fuels, oils, and transmission fluids. Operation of the proposed uses would involve the storage and distribution of small quantities of potentially hazardous materials in the form of medical device materials, cleaning solvents, and herbicides for landscaping. PHS currently maintains a Business Emergency Plan which is updated and submitted to the County of Riverside Hazardous Materials Management Division annually for operations permit renewal. The purpose of the Plan is to ensure that all potentially hazardous materials are contained, stored, used, and disposed of in compliance with applicable standards and regulations and that the appropriate personnel are contacted in the event of a hazardous materials-related emergency. In the event the status of the land uses for the project site change, a new Business Emergency Plan would be required to address the site and its related activities. Hazardous material impacts anticipated from future uses will be analyzed under the future Specific Plan. All potentially hazardous materials shall be contained, stored, and used in accordance with manufacturers' G:\Planning\2006\PA06-0370 PHS Tentative Map (TTM35181 )\Planning\CEQA\lnitial Study - PHS.doc 20 instructions and handled in compliance with the Business Emergency Plan and other applicable standards and regulations. Therefore, impacts are forecast to be less than significant as result of the project. 7.c. No Impact: No schools exist or are proposed within one-quarter mile of the proposed project site; therefore, no impacts are anticipated as a result of the proposed project. 7.d. No Impact: The proposed project is not on a site included on a list of hazardous materials sites pursuant to Government Code Section 65962.5 that would create a significant hazard to the public or the environment, and no impacts are anticipated as a result of the proposed project. 7.e-f. No Impact: The proposed project is not located within an airport land use plan or within two miles of a public airport or private air strip. No impact to people working in the area or airport uses is anticipated as a result of the proposed project. 7.g. No Impact: The proposed project is not located in an emergency response or evacuation plan area. 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 project site is within an urbanized area that is not considered to be a high fire risk area. The proposed project complies with all applicable Building and Fire Codes. This project would not expose people or structures to a significant risk or loss, injury or death involving wildland fires and no impact is anticipated as a result of this project. G:\Planning\2006\PA06-0370 PHS Tentative Map (TTM35181 )\Planning\CEQA\lnitial Study - PHS.doc 21 c. d. e. I f. g. I h. i. j. 8. HYDROLOGY AND WATER QUALITY. Would the project: a. Issues and Supportina Information Sources Violate any water quality standards or waste discharge requirements or otherwise substantially degrade water quality? 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 qranted)? 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 in substantial 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 floodinq 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 OO-year flood hazard area as mapped on a federal Flood Hazard Boundary or Flood 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 faiiure of a levee or dam? Inundation by seiche, tsunami, or mudflow? b. Comment: Potentially Significant Impact Potentially Significant Unless Mitigation Incorporated No Impact Less Than Significant Impact ./ ./ ./ ./ ./ ./ ./ ./ ./ ./ 8.a. Less Than Significant Impact: The proposed project would permit development of an 84 acre site. Any wastewater impacts anticipated from the development of Parcels 1, 2, and 3 will be analyzed when a specific development is proposed for those parcels. Violation of water quality standards are not anticipated 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. In compliance with the requirements of the National Pollutant Discharge Elimination System (NPDES), Best Management Practices (BMPs) will be implemented during construction and occupancy to control storm water runoff pollution. A less than significant impact is anticipated as a result. G:\Planning\2006\PA06-0370 PHS Tentalive Map (TTM35181)\Planning\CEQA\lnitial Study - PHS,doc 22 8.b. Less Than Significant Impact: The Rancho California Water District provides water and reclaimed water services to the project area. The proposed project does not include the injection into or extraction from groundwater and would not create substantial subsurface cuts, which might impede groundwater movement. No water wells would be used on the project site, as the Water District will provide water supply. Therefore, the project will not have an affect on the quantity and quality of ground waters, either through direct additions or withdrawals. The project will create approximately 30 acres of impermeable surface on Parcel 4. The proposed project is required to comply with local development standards, including lot coverage and landscaping requirements, which will allow for some percolation and ground water recharge on the developed site. A less than significant impact is anticipated as a result of the proposed project. 8.c-e. Less Than Significant Impact: The proposed project would result in the alteration of existing drainage patterns and the amount and quality of surface runoff due to grading, and the construction of structures and associated parking which result in the addition of impervious surfaces. Some changes to absorption rates, drainage patterns, and the rate and amount of surface runoff are expected whenever development occurs on previously permeable ground. While absorption rates and surface runoff will change, potential impacts shall be mitigated through site design which includes detention basins and swales to accommodate runoff. These types of drainage conveyances, which safely and adequately handle runoff, are anticipated to ultimately drain into the existing storm drains. The proposed project will be required to accommodate the drainage created as a result of the development with an on-site drainage plan and Best Management Practices (BMP's) subject to Regional Water Quality Control Board (RWQCB) regulations as well as National Pollution Elimination Discharge System (NPEDS) standards. Through implementation of the project Stormwater Prevention Pollution Plan (SWPPP), erosion and siltation issues are controlled and with implementation of the project Water Quality Management Plan (WQMP), surface run-off and water quality impacts are controlled. A Preliminary Drainage Study for TTM 35181 prepared by SB&O, Inc., on March 6, 2007, provided preliminary drainage information related to the pad for Parcel 4. The development of Parcel 4 includes two water quality basins to be located along the southern and eastern edge of the parcel. The basins will serve to collect runoff from the project site and allow percolation. A large basin at the northeast corner of the PHS pad will discharge to the existing 60" storm drain in Dendy Parkway. Approximately 19.5 acres will be routed to this basin. The smaller basin located near the proposed driveway off Remington Avenue extension will discharge to a new storm drain system in Remington, which will connect to the existing 60" storm drain. Site drainage will consist primarily of overland flow from paved parking lots to curb and gutter with openings to allow for water quality flows to travel in a grass swale. Roof runoff will collect at multiple locations and discharge directly into storm drain systems. Water quality structures will be placed at several locations in the storm drain system to address water quality issues associated with roof runoff (Preliminary Drainage Study for TTM 35181 prepared by SB&O, Inc. on March 6, 2007). Conditions of Approval for Tentative Map No. 35181 will include requiring the developer to submit to the Public Works Department a Drainage Study and WQMP prepared by a registered Civil Engineer for all future grading plans on the parcels created by TTM 35181. The alteration of existing drainage patterns for future development of Parcels 1, 2, and 3 will be analyzed under a future Specific Plan and subsequent development plans for each of the parcels. A less than significant impact is anticipated as a result of the project. 8.f. Less Than Significant Impact: The propos~d 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 Municipal Separate Storm-Sewer permit (MS4 permit) issued by the San Diego Regional Water Quality Control Board. The WQMP for Parcel 4 development was submitted on November 30, 2006 and accepted by the Public Works Department in May 2007. The water quality control measures identified in the WQMP have either been incorporated into the design of the project or have been added to the project with specific conditions of G:\Planning\2006\PA06-0370 PHS Tentative Map (TTM35181)\Planning\CEQA\lnitial Study - PHS.doc 23 approval and are expected to eliminate potential adverse impacts to receiving waters. A project specific WQMP will be required for each parcel created and anticipated for future development under this project. A less than significant impact is anticipated as a result of the project. 8.g-h. No Impact: As identified in the General Plan Safety Element, the project site is not located in the 100 Year Flood Boundary or in any of the Dam Inundation Areas, nor is it near any large bodies of water. Structures will not be located within the 100-year floodplain as a result of implementing this project; therefore, significant flood hazards are not expected to occur from developing the project site and no impact is anticipated as a result. 8.i. No Impact: The project site is not located within a dam inundation area. The project would not expose people or structures to a significant risk of loss, injury, or death involving flooding, including flooding as a result of a levee or dam failure. No impact is anticipated as a result of the project. 8.j. No Impact: The proposed project is not located near a coast line which would be subject to inundation by seiche, tsunami, or mudflow. No impact is anticipated as a result of the proposed project. G:\Planning\2006\PA06-0370 PHS Tentative Map (TTM35181 )\Ptanning\CEQA\lnitial Study - PHS. doc 24 9. LAND USE AND PLANNING. Would the project: I a. b. Issues and SuPPorting Information Sources Physicall\i divide an established community? 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 mitigating an environmental effect? Conflict with any applicable habitat conservation plan or natural community conservation plan? Potentially Significant Impact Potentially Significant Unless Mitigation IncorDorated Less Than Significant Impact ./ ./ No Impact I c. ./ Comments: 9.a-b. Less Than Significant Impact: The proposed project is located in an urbanized industrial area of the City. Implementation of an industrial building for Professional Hospital Supply is consistent with the current Industrial Park (IP) General Plan land use designation and therefore will not divide an established community or conflict with any applicable land use plan, policy, or regulation. However, the proposed expansion for Professional Hospital Supply (PHS) presented unique circumstances, such as building size, parking and loading needs, site location, and adequate access. In support of the proposed opportunity for additional quality employment within the community, a General Plan Amendment was proposed to designate the 84 acre site as a future Specific Plan Area. It is anticipated that the future Specific Plan would include proposed commercial, retail, high-density residential, and/or public institutional uses on the parcels created by Tentative Map No. 35181. The proposed Development Agreement for the project site will allow for the vested right to develop the site consistent with the uses permitted in a future Specific Plan. The future Specific Plan is anticipated to implement the City of Temecula General Plan land use goals and policies by encouraging diverse, high- quality land uses and mixed use development on the site. By accommodating a diverse mix of land uses the City can achieve a suitable inventory of housing for a range of income groups, a viable commercial and employment base for residents, and high-quality urban lifestyles. Designating the land for a future Specific Plan Area provides a guideline for future maximum density and intensity of development, while still encouraging mixed commercial, office, and residential development in a key location west of 1-15 and adjacent to the future Western Bypass corridor. The uses anticipated under the future Specific Plan will be analyzed for General Plan consistency with the Specific Plan proposal. The project is currently consistent with the General Plan and land use impacts are anticipated to be less than significant. 9.c. Less Than Significant Impact: The project is located in a Multiple Species Habitat Conservation Plan Criteria Cell. The applicant filed a Habitat Acquisition and Negotiation Strategy (HANS) application. The City of Temecula has not identified this property as a candidate for habitat acquisition. The project is consistent with the applicable Multi Species Habitat Conservation Plan and any potential impacts are anticipated to be less than significant. G:\Planning\2006\PA06-0370 PHS Tentative Map (TTM35181)\Planning\CEQAllnilial Study - PHS. doc 25 10. MINERAL RESOURCES. Would the project: a. Issues and SUDDortinp Information Sources 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? Result in the loss of availability of a locally-important mineral resource recovery site delineated on a local Qeneral plan, specific plan or other land use plan? Potentially Significant Imoact Potentially Significant Unless Mitigation Incorporated Less Than Significant Imoact No Impact v' b. v' Comments: 10.a-b. No Impact: The project will not result in the loss of availability of a known mineral resource nor in the loss of an available, locally important mineral resource recovery site. The State Geologist has given the City of Temecula a classification of MRZ-3a, containing areas of sedimentary deposits, which have the potential for supplying sand and gravel for concrete and crushed stone for aggregate. However, these areas are determined as not containing deposits of significant economic value based upon available data in reports prepared in accordance with the Surface Mining and Reclamation Act (SMARA) of 1975. Furthermore, the project site is not identified as an important site known to maintain such resources as shown in the Final EIR for the City of Temecula General Plan. Therefore, no impacts are anticipated as a result of this project. G:\Plannlng\2006\PA06-0370 PHS Tenlative Map (TTM35181)\Planning\CEQA\lnltial Study - PHS.doc 26 11. NOISE. Would the project result in: a. b. c. d. e. f. Issues and Supportinq Information Sources 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 aQencies? Exposure of persons to or generation of excessive Qroundborne vibration or ground borne noise levels? A substantial oermanent increase in ambient noise levels in the project vicinity above levels existing without the fJroject? A substantial temoorarv or oeriodic increase in ambient noise levels in the project vicinity above levels existing without the project? 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 Droiect area to excessive noise levels? Comments: Potentially Significant Impact Potentially Significant Unless Mitigation Incorporated -/ No Impact Less Than Significant Impact -/ -/ -/ -/ -/ 11.a. Potentially Significant Unless Mitigation Incorporated: The existing noise environment in the project area is dominated by traffic noise from nearby roadways as well as industrial business operations. The maximum noise level allowed is determined by land use. The City of Temecula General Plan Noise Element specifies a maximum allowed noise level of 75 dBA CNEL may be generated from industrial land uses. This standard represents the maximum level of noise exposure on any community from a light industrial use. The proposed development for Parcel 4 is anticipated to generate less than significant noise levels based on the use, location, and standard operations. Noise levels expected to be generated from anticipated future commercial, public institutional and/or residential land uses will be analyzed with the future Specific Plan. Impacts from future anticipated uses will be subject to noise analysis and standard mitigation measures if an impact is significant. There are no' known noise sensitive receptors within the vicinity of the project site; however, there are several residences located above the project site within the hills to the west. These residences are located a substantial distance from the project site, but the potential for noise impacts c.ould still be significant. For that reason, long term noise impacts associated with distribution trucks and loading/unloading operations will be required to be within noise level standards established by the Noise Element of the City of Temecula General Plan. The following shall be required as part of the mitigation monitoring program to ensure all noise impacts associated with the project are a less than significant level. Any potential noise impacts will be reduced to a less than significant level with implementation, monitoring, and enforcement of the following mitigation measure. G:\Planning\2006\PA06-0370 PHS Tentative Map (TTM35181)\Planning\CEQA\lnitial Study - PHS,doc 27 38. Prior to issuance of a building permit, the project applicant shall submit an acoustical analysis prepared by a certified acoustical engineer to ensure that noise levels will not exceed an Ldn of 75 dBA exterior or an Ldn of 55 dBA interior at the receptor. The analysis shall include requirements such as special design measures to protect surrounding noise sensitive uses from ultimate projected operational noise levels. 11.b. Less Than Significant Impact: Construction activities are anticipated within the proposed project that could expose persons working in the area to, or generate excessive ground borne vibration or ground borne noise levels. However, noise from construction of the project is temporary and required to comply with City ordinances regulating the hours of activity to Monday through Friday from 6:30 a.m. to 6:30 p.m. and Saturday from 7:00 a.m. to 6:30 p.m. in industrial areas. Less than significant impacts are anticipated as a result. 11.c. Less Than Significant Impact: The existing noise environment in the project area is dominated by traffic noise from nearby roadways as well as industrial business operations. The heaviest traveled roadways in the vicinity of the project area include Winchester Road and Dendy Parkway, which are located south and east of the project site. Ambient noise levels in the project vicinity are typical of noise levels experienced within urbanized areas throughout the City of Temecula. The operation of mechanical equipment such as air conditioners, fans, and related equipment may generate additional audible noise levels; however, mechanical equipment would be located within buildings or shielded 'from nearby sensitive noise receptors to attenuate noise and avoid conflicts with future commercial, public institutional, and/or residential uses. Therefore, operation of mechanical equipment within these areas would not result in a substantial increase in noise levels. No significant impact would occur and no mitigation measures would be required. 11.d. Less Than Significant Impact: The project may result in temporary or periodic increases in ambient noise levels during construction. However, noise from construction of the project will comply with City ordinances regulating the hours of activity to Monday through Friday from 6:30 a.m. to 6:30 p.m. and Saturday from 7:00 a.m. to 6:30 p.m. in industrial areas. In addition, the project site is within an industrial area where currently the closest residential units are over one-quarter mile away and will not be impacted from temporary increases in ambient noise levels. Less than significant impacts are anticipated. 11.e-f. No Impact: This project is not within two miles of a public airport or private airstrip. Therefore, people working in the project area will not be exposed to excessive noi$e levels generated by an airport and no impacts will result from this project. G:\Planning\2006\PA06-0370 PHS Tentative Map (TTM35181)\Planning\CEQA\lnitial Study - PHS.doc 28 12. POPULATION AND HOUSING. Would the project: a. Issues and SUPDortinp Information Sources 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? Potentially Significant Impact Potentially Significant Unless Mitigation Incorporated Less Than Significant [moat..i y' No Imoact b. y' I c. y' Comments: 12.a. Less Than Significant Impact: The project site is located within an urbanized area with existing infrastructure and roadways. Development of the project site would result in the extension of roads and/or major infrastructure that may cause some people to relocate to, or within Temecula to be closer to their place of employment. Future population and housing impacts expected from anticipated future uses will be analyzed under a future Specific Plan. Currently, the proposed project would not induce growth beyond what is projected in the City of Temecula General Plan because industrial land uses, such as PHS, were anticipated for the Industrial Park (IP) areas of the City (Page LU-21). In addition, the proposed project is largely intended to implement the City's General Plan goals by providing for additional quality employment opportunities, and supporting the existing Professional Hospital Supply (PHS) corporation expansion by providing for a 608,934 square foot facility to include supporting office, warehouse, and distribution space. Substantial population growth is not anticipated as a result of the project and impacts will be less than significant. 12.b-c.No Impact: No residential properties currently exist on the project site; therefore, implementation of the proposed project would not displace existing housing, nor would it displace numbers of people, necessitating the construction of replacement housing elsewhere. No impacts would occur and no mitigation measures are required. G:\Planning\2006\PA06-0370 PHS Tentative Map (TTM35181)\Planning\CEQA\lnitial Study - PHS.doc 29 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: I a. lb. I c. I d. Ie. Issues and SUDDortina,lnformation Sources Fire protection? Police protection? Schools? Parks? Other public facilities? Potentially Significant Imoact Potentially Significant Unless Mitigation Incarcorated Less Than Significant Imoact .{ .{ .{ .{ .{ No Imoact Comments: 13.a-e.Less Than Significant Impact: The proposed project for a 608,934 square foot industrial building and future anticipated commercial, public institutional, and/or residential development of the 84 acre site will have a less than significant impact on upon public facilities. The project will not result in a need for new or altered fire, police, or recreation facilities because the project is consistent with the Industrial Park (IP) land use designation analyzed as part of the General Plan. The General Plan anticipated for this type of development in the designed IP areas of the City. Future impacts expected from anticipated future commercial, public institutional, and/or high-density residential uses described in the Development Agreement (PA07-0220) will be analyzed under a future Specific Plan. The project as proposed will not have an impact upon, and will not result in a need for new or altered school facilities because there will not be residential dwellings being developed under this approval, and residential development typically triggers the need for new or expanded school facilities. However, sewer and water service will need to be extended to serve the development. The Rancho California Water District (RCWD) has been made aware of this project and indicated sewer and water service is available and may be extended to the site upon agreement between the property owner and RCWD. No significant impacts are anticipated as a result of this project. G:\Planning\2006\PA06-0370 PHS Tentative Map (TTM35181)\Planning\CEOA\lnitial Stwdy - PHS. doc 30 14. RECREATION. Would the project: a. Issues and SUDoortin.a Information Sources 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 phvsical effect on the environment? Potentially Significant Imoact Potentially Significant Unless Mitigation Incoroorated Less Than Significant Imoact No Imoact .{ b. .{ Comments: 14.a. No Impact: The project is located within an industrial zone planned for this type of development. The project will not increase the use of recreational facilities or cause the deterioration a recreational land. No impacts are anticipated as a result of this project. 14.b. No Impact: The proposed project does not include an open space or recreational facility. The project will not require the construction or expansion of additional recreational facilities. No impacts are anticipated as a result of the proposed project. G:\Planning\2006\PA06-0370 PHS Tentative Map (TTM35181 )\Planning\CEQA\lnitial Stwdy - PHS.doc 31 15. TRANSPORTATION/TRAFFIC. Would the project: a. b. c. d. Ie. I f. g. Issues and SupDortinq Information Sources 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 conQestion at intersections)? Exceed, either individually or cumulatively, a level of service standard established by the county congestion mana!"Jement aQency for desiQnated roads or hiqhways? Result in a change in air traffic patterns, including either an increase in traffic levels or a change in location that results in substantial safety risks? Substantially increase hazards due to a design feature (e.g., sharp curves or dangerous intersections) or incompatible uses (e.Q., farm equipment)? Result in inadequate emerqency access? Result in inade(luate parkinq capacity? Conflict with adopted policies, plans, or programs supporting alternative transportation (e.g., bus turnouts, bicvcle racks)? Comments: Potentially Significant Imoact Potentially Significant Unless Mitigation Incoroorated No Impact Less Than Significant Impact .{ .{ .{ .{ .{ .{ .{ 15.a-b. Less than Significant Impact: The project proposes a 608,934 square foot industrial medical supply warehouse (including 82,476 square feet of office use), and approximately 178,000 square feet of commercial retail uses, 31,200 square feet of office uses, a small percentage of high density residential, and/or public institutional facilities on 84 gross acres. The anticipated land uses other than the proposed industrial development will be subject to further review and approval when the exact uses are determined and analyzed as part of a future Specific Plan. The applicant prepared a traffic study, entitled Professional Hospital Supply Traffic Impact Analysis, dated October 20, 2006, by Urban Crossroad, which analyzed the "worse case" conservative conditions based on the proposed industrial development and anticipated future uses. The analysis reviewed existing traffic conditions in the vicinity of the project site, as well as the potential project impacts at the following intersections adjacent to the project site: . Driveway A (NS) at Remington Avenue (EW) \ . Winchester Road (NS) at Remington Avenue (EW) . Driveway B (NS) at Dendy Parkway (EW) . Diaz Road (NS) at Winchester Road (EW) . Enterprise Circle (NS) at Winchester Road (EW) . Jefferson Avenue (NS) at Winchester Road (EW) . 1-15 Southbound Ramps (NS) at Winchester Road (EW) . 1-15 Northbound Ramps (NS) at Winchester Road (EW) G:\Planning\2006\PA06-0370 PHS Tentative Map (TTM35181)\Planning\CEQA\lnitial Slwdy. PHS. doc 32 The General Plan has established Level of Service (LOS) D as the lowest acceptable level of service for traffic circulation within the City of Temecula. All intersections within the study area currently operate at LOS 0 or better during the peak hours. The proposed development at build out is projected to generate approximately 14,364 trip-ends per day with 613 vehicles per hour during the a.m. peak hour and 1,386 vehicles per hour during the p.m. peak hour. Approximately 70 percent of the Professional Hospital Supply (PHS) warehousing trips are being relocated from existing facilities in the irnmediate vicinity of the project site. The proposed project is anticipated to be built out in 2009; therefore the traffic analysis was based on three years of background traffic growth at a rate of two percent per year for a total of six percent (Traffic Impact Analysis, 2006, page 4-7). For 2009, with the addition of estimated project traffic plus traffic from future adjacent development, all study area intersections are expected to operate at LOS D or better at peak hours with the exception of the intersections of Diaz Road at Winchester Road and Jefferson Avenue at Winchester Road (Traffic Impact Analysis, 2006, page 5-1). It should be noted that without the addition of the proposed Temecula Education Center all intersections will operate at a LOS "D" or better. To address site specific circulation and access, the following public improvements will be required as conditions of approval for Tentative Tract Map No. 35181 and the Development Plan for PHS: . Construct Driveway A on Remington Avenue as a cross-street stop with full access . Construct Driveway B on Dendy Parkway as a cross-street stop with full access . Construct Dendy Parkway from Winchester Road to the eastern project boundary at its ultimate half-section width as a secondary arterial in conjunction with development. . Construct Winchester Road from Remington Avenue to Dendy Parkway at its ultimate half- section width as a secondary arterial in conjunction with development . Construct Remington Avenue from the driveway serving the retail (proposed Pad 3) to Winchester Road at its ultimate full section width as a local road in conjunction with development . Construct the extension of Remington Avenue west of Winchester Road. Install a stop control on the eastbound leg of Remington Avenue for an all-way stop controlled intersection . Stripe a 200 foot northbound left turn pocket at the intersection of Winchester Road at Remington Avenue To address off-site improvements, participation in funding of construction for improvements which are needed to serve 2009 conditions shall be required through the payment of City of Ternecula Development Impact Fees (DIF) and Western Riverside County Transportation Uniform Mitigation Fees (TUMF). Payment of these fees will help support Capital Irnprovement Program (CIP) projects that reduce traffic congestion in these areas. Specific CIP projects, such as the construction of the French Valley Parkway overpass and interchange with the 1-15 freeway, and the extension of Cherry Street and the construction of the Western By-Pass Corridor, are anticipated to mitigate impacts along Winchester Road, including the impacted intersections of Diaz Road at Winchester Road and Jefferson Avenue at Winchester Road, at the completion of cumulative projects such as the Temecula Education Center. The Development Agreement between the City of Temecula and the applicant identifies public road improvements that will be accomplished as part of the Owner's development obligations. These improvements include the following and have been taken into consideration in the analysis of potential significant impacts related to traffic/circulation: G:\Planning\2006\PA06-0370 PHS Tentative Map (TTM35181)\Planning\CEOA\lnitial SWdy - PHS.doc 33 The General Plan has established Level of Service (LOS) D as the lowest acceptable level of service for traffic circulation within the City of Temecula. All intersections within the study area currently operate at LOS D or better during the peak hours. The proposed development at build out is projected to generate approximately 14,364 trip-ends per day with 613 vehicles per hour during the a.m. peak hour and 1,386 vehicles per hour during the p.m. peak hour. Approximately 70 percent of the Professional Hospital Supply (PHS) warehousing trips are being relocated from existing facilities in the immediate vicinity of the project site. The proposed project is anticipated to be built out in 2009; therefore the traffic analysis was based on three years of background traffic growth at a rate of two percent per year for a total of six percent (Traffic Impact Analysis, 2006, page 4-7). For 2009, with the addition of estimated project traffic plus traffic from future adjacent development, all study area intersections are expected to operate at LOS D or better at peak hours with the exception of the intersections of Diaz Road at Winchester Road and Jefferson Avenue at Winchester Road (Traffic Impact Analysis, 2006, page 5-1). It should be noted that without the addition of the proposed Temecula Education Center all intersections will operate at a LOS "D" or better. To address site specific circulation and access, the following public improvements will be required as conditions of approval for Tentative Tract Map No. 35181 and the Development Plan for PHS: . Construct Driveway A on Remington Avenue as a cross-street stop with full access . Construct Driveway B on Dendy Parkway as a cross-street stop with full access . Construct Dendy Parkway from Winchester Road to the eastern project boundary at its ultimate half-section width as a secondary arterial in conjunction with development. . Construct Winchester Road from Remington Avenue to Dendy Parkway at its ultimate half- section width as a secondary arterial in conjunction with development . Construct Remington Avenue from the driveway serving the retail (proposed Pad 3) to Winchester Road at its ultimate full section width as a local road in conjunction with development . Construct the extension of Remington Avenue west of Winchester Road. Install a stop control on the eastbound leg of Remington Avenue for an all-way stop controlled intersection . Stripe a 200 foot northbound left turn pocket at the intersection of Winchester Road at Remington Avenue To address off-site improvements, participation in funding of construction for improvemen:s which are needed to serve 2009 conditions shall be required through the payment of City of Temecula Development Impact Fees (DIF) and Western Riverside County Transportation Uniform Mitigation Fees (TUMF). Payment of these fees will help support Capital Improvement Program (CIP) projects that reduce traffic congestion in these areas. Specific CIP projects, such as the construction of the French Valley Parkway overpass and interchange with the 1-15 freeway, and the extension of Cherry Street and the construction of the Western By-Pass Corridor, are anticipated to mitigate irnpacts along Winchester Road, including the impacted intersections of Diaz Road at Winchester Road and Jefferson Avenue at Winchester Road, at the completion of cumulative projects such as the Temecula Education Center. The Development Agreement between the City of Temecula and the applicant identifies public road improvements that will be accomplished as part of the Owner's development obligations. These improvements include the following and have been taken into consideration in the analysis of potential significant irnpacts related to traffic/circulation: G:\P!anning\2006\PA06-0370 PHS Tentative Map (TTM35181)\Planning\CEQA\lnitial Slwdy - PHS. doc 34 . Owner shall construct the Remington Road extension and access points from the Property to Remington Road . Dedicate full section right-of"way for the Western Bypass within the project boundaries . Provided the Western By-Pass is constructed, Owner shall construct, at its own expense, any connector roads or on or off ramps from the Property to the Western By-Pass Addition on-site requirements that occur as part of the conditions of approval include sight distance at the project entrances to be reviewed with respect to Caltrans and City of Temecula sight distance standards at time of preparation of final grading, landscaping, and street improvement plans, on"site traffic signing and striping to be detailed in conjunction with construction plans for the project site and implemented prior to occupancy, and stop signs, stop bars and stop legends to be provided at the project access points. With implementation of the required improvements and fees as part of the conditions of approval traffic irnpacts from this project are anticipated to be a less than significant. 15.c. No Impact: Development of the proposed project will not result in a change in air traffic patterns, including an increase in traffic levels or a change in location that would result in substantial safety risks. This site is not within the French Valley Airport influence area. No impacts are anticipated as a result of the project 15.d. No Impact: The project will not increase hazards to safety from design features. The project is designed to current City standards and will not pose any hazards from sharp curves or dangerous intersections. No significant impacts are anticipated as a result of this project. 15.e. No Impact: The project will not result in inadequate emergency access or inadequate access to nearby uses. The project is designed to current City standards and provides for adequate ingress and egress from the site. The project does not interfere with access to nearby uses. The Fire and Police Departments have reviewed the proposed project and have determined that adequate emergency access has been provided. No impacts are anticipated as a result of this project. 15.f. Less than Significant Impact: The project proposes a 608,934 square foot industrial medical supply warehouse (including 82,476 square feet of office use), and future industrial, commercial, retail, office, public institutional, and/or high density residential development on an 84 acre site. Development of the 608,934 square foot industrial building for Professional Hospital Supply (PHS) will compromise approximately 30 acres of the 84 acre project. The City of Temecula requires parking be provided at a ratio of 1 space per 1,000 square feet of warehouse and 1 space per 300 square feet of office. The City's parking ordinance does not address large scale distribution facilities such as the proposed project; however, other jurisdictions in southern California do. Based on City standards a total of 801 parking spaces are required for the PHS project. The project will provide a total of 399 on site parking spaces. Based on PHS's unique operations, in which warehouse/distribution activities run seven days a week/24 hours a day in three shifts with approximately 245 employees per shift, an alternate parking plan has been implemented. Recognizing that distribution facilities require above average loading capacity and typically have lower employee counts, 399 parking spaces is adequate for the facility size and use. The alternate parking plan is based upon the inverse relationship between loading capacity for fright movement and employee parking requirements. If the use on Parcel 4 were to change in the future, in which the required amount of warehouse storage and loading areas were to decrease, and employee parking needs were to increase, the site can accommodate additional automobil., parking by re-stripping the loading areas. The other three developable parcels will be required to provide adequate parking based on the parking requirements for each use specified in the future Specific Plan. Therefore, the project will not result in inadequate parking capacity and impacts are anticipated to be less than significant. G:\Planning\2006\PA06-0370 PHS Tentative Map (TTM35181)\Planning\CEQA\lnitial Stwdy - PHS. doc 35 15.g. No Impact: Transit Service for the project site is currently served by the Riverside Transit Authority (RT A). The surrounding industrial area has established alternative transportation routes (i.e. bus and bicycle routes) along Winchester Road and Diaz Road. New bus facilities and/or routes were not required as a result of the proposed project. 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 and therefore, no impact is anticipated as a result of this project. G:\Plannlng\2006\PA06-0370 PHS Tentative Map (TTM35181)\Planning\CEOA\lnitial Stwdy - PHS.doc 36 16. UTILITIES AND SERVICE SYSTEMS. Would the project: I a. b. c. d. e. I f. I g. Issues and SUDDortinq Information Sources Exceed wastewater treatment requirements of the applicable ReQional Water Quality 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 significant 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 expanded 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 I accommodate the project's solid waste disposal needs? Comply with federal, state, and local statutes and I requlations related to solid waste? Comments: Potentially Significant Imoact Potentially Significant Unless Mitigation Incarcorated No Imoact Less Than Significant Imoact .{ .{ .{ .{ .{ .{ .{ 16.a-b,e.Less Than Significant Impact: Development of the proposed project will have an incremental effect upon existing systems. However, the Final Environmental Impact Report (FEIR) for the City's General Plan states: "implementation of the proposed General Plan would not significantly impact wastewater services." Since the project implements the goals and policies of the City's General Plan, no significant impacts are anticipated as a result of this project. Moreover, the project will be conditioned to comply with Regional Water Quality Control Board standards that will be monitored by the Department of Public Works. Potential impacts would be less than significant and no mitigation measures are required. 16.c. Less Than Significant Impact: The development of the parcel will require or result in the construction of new storm water drainage facilities onsite that will connect to the existing system currently in place. The design of the existing system offsite is expected to be sufficient to handle this project and will not require the expansion of existing facilities (Preliminary Drainage Study for TTM 35181 prepared by SB&O, Inc. on March 6, 2007). The alteration of existing drainage patterns for future development of Parcels 1, 2, and 3 will be analyzed under a future Specific Plan and subsequent development plans for each of the parcels. The project has been conditioned to address storm drainage flows that would result from the proposed development. This project will be conditioned to comply with Conditions of Approval for Tentative Map No. 35181 and Development Plan for Parcel 4, which required submittal of a drainage study with the initial grading plan check. With implementation of the drainage study recommendations, impacts associated with storm water drainage would be less than significant. 16.d. Less Than Significant Impact: While the proposed project will have an incremental impact upon existing systems, the project will not significantly impact existing water supplies nor require expanded water entitlements. Adequate water supplies have been identified by the Rancho California Water G:\Planning\2006\PA06-0370 PHS Tentative Map (TTM35181 )\Plannlng\CEQA\lnitial Stwdy - PHS. doc 37 District to meet the current and immediate future demands in its service area, including the proposed project. Therefore, a less than significant impact is expected. 16.f-g. Less Than Significant Impact: The project will not result in a need for new landfill capacity. According to the General Plan Environmental Impact Report (EIR), page 5.14-5, and the County Solid Waste Management Plan adequate landfill disposal capacity exists within the regional landfills to meet current and future dernands with the incorporation and continued expansion of recycling programs and opportunities. Any potential impacts from solid waste created by this development can be mitigated through participation in Source Reduction and Recycling Programs, which are implemented by the City. Less than significant impacts are anticipated as a result of this project. G:\Planning\2006\PA06-0370 PHS Tentative Map (TTM35181 )\Planning\CEQAllnitial SWdy - PHS.doc 38 17. MANDATORY FINDINGS OF SIGNIFICANCE. Would the project: a. b. c. Issues and Supoortinq Information Sources 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 rnajor periods of California history or prehistory? 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 proiects, and the effects of probable future proiects)? Does the project have environmental effects which will cause substantial adverse effects on human beings, either directly or indirectlv? Comments: Potentially Significant Imoact Potentially Significant Unless Mitigation Incoroorated .{ No Imoact Less Than Significant Imoact .{ .{ 17.a. Potentially Significant Unless Mitigation Incorporated: The proposed project is for a Development Agreement (PA07-0220) and General Plan Amendment (PA07-0048), which will. authorize the development of an approximate 84 acre site, a Tentative Tract Map (TTM 35181, PA06-0370) to subdivide the 84 acre site into four developable parcels and one 16 acre easement parcel for slope and drainage purposes, and i3 Development Plan on Parcel 4 for a three-story 608,934 square foot industrial warehouse/distribution building. Industrial development of this type is allowed in the Light Industrial land use designation and conditionally permitted in the Light Industrial zone. A future Specific Plan will define the anticipated commercial, retail, high density residential, and public institutional land uses for three of the four developable parcels. The entire project site is located in an urbanized area surrounded by industrial and commercial land uses. Portions of the site have been previously graded and disturbed, and contain no biological resources or any habitat suitable to support any MSHCP- covered species. Implementation of the proposed project would potentially affect sensitive vegetative communities, habitats of sensitive animal species, raptor nests, and the burrowing owl. No threatened or endangered plant species were observed on site. Implementation of mitigation measures as previously described within this Initial Study would ensure that impacts to habitat and associated animal species are reduced to a less than significant level. As described previously, prehistoric or historic archaeological sites are known to exist within the project site. Mitigation would ensure that development would not cause a substantial adverse change in the significance of an archaeological or paleontological resource. Therefore, with mitigation, development of the proposed project would not degrade the quality of the environment, substantially reduce the habitat of 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 major periods of California history or prehistory. G:\Planning\2006IPA06-0370 PHS Tentative Map (TTM35181)\PlanningICEQAllnitial Stwdy _ PHS.doc 39 17.b. Less Than Significant With Mitigation Incorporated: The project site would be developed in conformance with the City of Temecula's General Plan and Development Code. Cumulative effects for the industrial development of this site were analyzed in the General Plan Environmental Impact Report. Without cumulative traffic (estimated proposed project traffic plus traffic from future adjacent development of the Temecula Education Center) all study area intersections are expected to operate at acceptable levels at peak hours. All cumulative impacts for the various anticipated land uses of the subject site will be analyzed under a future Specific Plan. All other cumulative resource issues were found to be consistent with the General Plan and the Development Code. Given the project's consistency with the General Plan and Development Code, the cumulative impact related to the development of the proposed project will not have a significant impact. 17.c. Less Than Significant With Mitigation Incorporated: The proposed project will not have environmental effects that would cause substantial adverse effects on human beings, directly or indirectly. Potential impacts include short-term construction effects and the long-term effects that result from converting a property from its existing setting to a developed site. Most of the potential adverse impacts are either not significant without mitigation or they can be controlled to a less than significant impact with identified mitigation measures. Several potential impacts (aesthetics, air quality, biology, cultural resources, geology) require extensive mitigation to ensure that impacts are controlled to a less than significant level. G:\Planning\2006\PA06-0370 PHS Tentative Map (TTM35181 )\Planning\CEQA\lnitial Stwdy - PHS.doc 40 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).ln this case a discussion should identify the following on attached sheets. I a. Earlier analyses used. Identify earlier analyses and state where they are available for review. I 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 mitiqation measures based on the earlier analysis. c. Mitigation measures. For effects that are "Less than Significant with Mitigation Incorporated," describe the mitigation measures which were incorporated or refined frorn the earlier document and the extent to which thev address site-specific conditions for the proiect. Comments: 18.a. The City's General Plan and Final Environmental Impact Report were used as a referenced source in preparing the Initial Study. These documents are available for review at the City of Temecula Planning Department located at 43200 Business Park Drive. 18.b. Impacts to habitat from the approved Western Bypass were previously addressed by mitigation measures based on an earlier analysis. 18.c. The mitigation measures are addressed in the Mitigation Monitoring Program, which is attached. SOURCES 1. Air Quality Impact Analysis Report prepared by Urban Crossroads (October 20, 2006) 2. Archaeological and Paleontological Assessment Report prepared by Cogstone Reso'urce Management, Inc. (August 2006) 3. Archaeological Testing Program prepared by LSA Associates, Inc. (March 2007) 4. Biological Technical Report prepared by Helix Environmental Planning, Inc. (March 23, 2007) 5. Burrowing Owl Habitat Assessment prepared Helix Environmental Planning, Inc. (March 23, 2007) 6. City of Temecula General Plan (April 12, 2005) 7. City of Temecula General Plan Final Environmental Impact Report (April 12, 2005) 8. Final Report on Prehistoric Site Boundary Testing and Survey of a Historic Homestead at CA-RIV- 237/H Temecula, California prepared by Cogstone Resource Management Inc. (October 2005) 9. Jurisdictional Delineation Reportprepared by Helix Environmental Planning, Inc. (June 26, 2007) 10. Limited Percolation Study for Temecula 32 - PHS Building Site prepared by GeoTek, Inc. (October 13, 2006) 11. Preliminary Drainage Study for TTM 35181 prepared by SB&O, Inc. (March 6, 2007) 12. Preliminary Geotechnical Evaluation for Temecula 32 prepared by GeoTek, Inc. (July 2006) 13. Preliminary Slope Stability Evaluation prepared by GeoTek, Inc. (March 21, 2007) 14. Traffic Impact Analysis Report prepared by Urban Crossroads (October 20,2006) G:\Planning\2006\PA06-0370 PHS Tentative Map (TTM35181 )\PlanningICEOAllnitial Stwdy - PHS.doc 41 ATTACHMENT NO.8 MITIGATION MONITORING PROGRAM G:IPlanningI2006IPA06-0370 PHS Tentative Map (TTM35181 )IPlannlnglPCIPC STAFF REPORT.doc 20 Project Description: Location: Applicant: General Impact: Mitigation Measure: SpeCific Process: Mitigation Milestone: Responsible Monitoring Party: Mitigation Monitoring Program Development Agreement between the City of Temecula and Temecula Properties, LLC, Planning Application Nos. PA07-0220 (Development Agreement), PA07-0048 (General Plan Amendment), PA06-0370 (Tentative Tract Map No. 35181), and PA06-0369 (Development Plan) for Professional Hospital Supply (PHS) Northwest corner of Winchester Road and Dendy Parkway The Garrett Group One BetterWorld Circle Temecula, CA 92590 Aesthetics Have a substantial adverse effect on a scenic vista and substantially degrade the existing visual character or quality of the site and its surroundings. 1. To ensure that the scale and character of proposed development along the hillside does not detract from the natural views, all structures associated with the development shall be designed in conformance with the General Plan requirements and Developrnent Code standards. Specifically, the visual mass of the buildings along the hillside shall be reduced through breaks in the structure, tree plantings, articulation of the fa<<ade, and other architectural devices. 2. The development shall be designed to rnlnJmlze detrimental impacts on surrounding properties, including, but not limited to, visual, noise, air quality and other environmental impacts. Strategies for minimizing the impacts include protecting any future residential areas adjacent to industrial and commercial developrnent through screening of circulation areas, loading 8reas and trash collection points or other areas that could potentially be disruptive to the character of the adjacent areas. Planning staff will verify compliance with the above mitigation measures as part of the building plan check review process Prior to issuance of building permits Planning Department G:\Planning\2006\PA06-0370 PHS Tentative Map (TTM35181 )\Planning\CEOA\Mitigation Monitoring Program.doc 1 General Impact: Mitigation Measure: Specific Process: Mitigation Milestone: Responsible Monitoring Party: General Impact: Air Quality Violate any air quality standard or contribute substantially tJ an existing or projected air quality violation, or 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 precursors). 3. Adhere to best management practices which include the application of water on disturbed soils twice daily, covering haul vehicies, replanting disturbed areas as soon as practical and restricting vehicle speeds on unpaved roads to 15 mphto control fugitive dust. 4. Trucks hauling dust, sand, gravel, or soil are to be covered or should maintain at least two feet of freeboard in accordance with Section 23114 of the California Vehicle Code. 5. During site grading, underground, and building activity construction, the contractor shall adhere to SCAQMD Rule 431.2 (diesel fuel with sulfur content of 15 ppm by weight or less). 6. During construction, off-road construction equipment shall be maintained in good condition and in proper tune as per manufacturers' specifications and restrict diesel equipment idling to no more than five minutes. 7. Limit application of paint to 50 gallons per day and use of Zero-VOC paints (assumes no more than 150 gram/liter of VOC). Planning staff will verify compliance with the above mitigation measures as part of the grading plan and building plan review process Prior to issuance of a grading perrnit and building permits Planning Department and Public Works Departrnent Biological Resources Have a substantial adverse effect, either directly or through habitat modifications, on any species identified as a candidate, sensiti'le, 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, or have a substantial adverse effect on any riparian habitat or other sensitive natural community G:\Planning\2006\PA06-0370 PHS Tentative Map (TTM35181)\Planning\CEQA\Mitigation Monitoring Program.doc 2 Mitigation Measure: Specific Process: Mitigation Milestone: Responsible Monitoring Party: General Impact: identified in local or regional plans, policies, regulations, or by the California Department of Fish and Game or US Fish and Wildlife Service. 8. A pre-construction burrowing owl survey is required 30 days prior to commencement of construction. If any burrowing owl is found on site, the CDFG shall be consulted, and a passive relocation effort shall be undertaken outside of the nesting season. No disturbance of active nests shall occur. 9. A qualified biologist shall determine if any active raptor nests occur within the limits of disturbance prior to commencernent of grubbing, clearing, or grading activities. 10. No brushing, clearing, or grading shall occur within 500 feet of occupied tree-nesting raptor habitat during the raptor breeding season (typically December to July). 11. In order to ensure MBT A compliance, clearing of native vegetation shall occur outside the breeding season of most avian species (February 1 through September 15) unless a pre- construction nesting bird survey determines that no nesting birds are present. The City of Temecula shall approve activities after concurrence is received from the wildlife agencies. 12. Lighting within the proposed project adjacent to preserved habitat shall be of the lowest illumination allowed for human safety and selectively placed, shielded, and directed away from preserved habitat. 13. Impacts to upland habitats and associated species shall be addressed through participation in the MSHCP and payment of the MSHCP Local Development Mitigation fees. The project is located within the Riverside County Stephens' kangaroo rat HCP Fee Assessment Area fee area. Planning staff will verify compliance with the above mitigation measures as part of the grading plan check review process Prior to issuance of a grading permit and building permits Planning Department and Public Works Department Biological Resources 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, filling, hydrological interruption, or other means. G:IPlanningI2006IPA06-0370 PHS Tentative Map (TTM35181 )IPlanninglCEQAIMitigation Monitoring Program. doc 3 Mitigation Measure: Specific Process: Mitigation Milestone: Responsible Monitoring Party: General impact: Mitigation Measures: 14. Both federal Clean Water sections 404 and 401 pe;-mits and a 1602 Streambed Alteration Agreement are required. Copies of all required permits shall be provided to the City prior to the start of construction and comply fully with all of the terms and conditions of those permits and agreement. 15. Impacts to jurisdictional areas shall be mitigated at least a 1:1 ratio through off-site creation or purchase of wetland credits within an approved wetland mitigation bank. Planning staff shall verify compliance with the above rnitigation measures as part of the grading plan check review process Prior to issuance of a grading permit and building permits Planning Department and Public Works Department Cultural Resources Cause a substantial adverse change in the significance of a historical or archaeological resource pursuant to Section 15064.5, and disturb any human remains, including those interred outside of formal cemeteries. 16. Prior to the issuance of a grading permit, the project proponent shall prepare an assessment of the archaeological and cultural resources on the 84 acre project site. The assessment shall be performed by a qualified archaeologist in conjunction with the Pechanga Band of Luisefio Indians in order to determine whether there are cultural resources on the property and evaluate the significance of any such resources. Any such testing shall involve the Pechanga Tribe, and all tests to determine impacts should be completed prior to the issuance of grading permits. 17. Prior to the issuance of a grading permit, the project proponent shall conduct further cultural resources testing on the site in the areas which have been designated by the Pechanga Tribe as likely to contain cultural resources. Prior to the testing, the project proponent shall meet with representatives of the Pechanga Tribe and the City to determine the specific additional -areas that shall be tested. Representatives of the Pechanga Tribe shall be present during the testing and the project proponent s~lall meet and confer in good faith with such Tribal representatives with respect to comments they may have on the testing. In the event additional mitigation measures are necessary as a result of cultural resources discovered the testing, the Director of Planning shall be authorized, following a Director's Hearing, to impose such new conditions or modify existing conditions as necessary to G:\Planning\2006\PA06-0370 PHS Tentative Map {TTM35181)\Planning\CEQA\Mitigation Monitoring Program.doc 4 mitigate any additional cultural resources impacts which may be identified. 18. Prior to the issuance of grading perrnits, the project proponent shall enter into a Treatment Agreement with the Pechanga Band of Luisefio Indians. This agreement will address the treatment and disposition of cultural resources and human remains that may be uncovered during construction as well as provisions for tribal monitors. 19. Tribal monitors from the Pechanga Band of Luisefio Indians shall be allowed to monitor all grading, excavation and ground-breaking activities, including further surveys, to be compensated by the project proponent. The Pechanga Tribal monitors shall have the authority to temporarily stop and redirect grading activities to evaluate the significance of any archaeological resources discovered on the property, in conjunction with the archeologist and the Lead Agency. 20. A qualified archaeologist monitor shall be present during all earthmoving activities. The monitor shall be empowered to temporarily halt or redirect construction work in the vicinity of the find until it can be evaluated by the project archaeologist in conjunction with the Pechanga Tribe. In the event of a new find, further testing, excavation, and/or reporting may be required. 21. 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. 22. If human remains are encountered, all activity shall cease and the County Coroner must be notified immediately. State Health and Safety Code Section 7050.5 state that no further disturbance shall occur until the County Coroner has made a determination of the origin and until treatment pursuant to Public Resources Code Section 5097.98 has been decided. The Coroner shall determine if the remains are prehistoric, and shall notify the State Native American Heritage Commission (NAHC) if applicable. Further actions shall be determined by the desires of the Most Likely Descendent (MLD). 23. The landowner shall agree to relinquish ownership of all cultural resources, including all Luisefio sacred items, burial goods and all archeological artifacts that are found on the project site to the Pechanga Band of Luisefio Indians for proper treatment and disposition. G:IPlanningI2006IPA06-0370 PHS Tentative Map (TTM35181)IPlanningICEQAIMitigation Monitoring Program.doc 5 Specific Process: Mitigation Milestone: Responsible Monitoring Party: General Impact: Mitigation Measures: 24. All sacred sites within the project area are to be avoided and preserved. 25. The %-acre of cultural site CA-RIV 237 located in the northeast corner of Planning Application 06-0370 shall be preserved in Open Space and recorded with the County Recorder of Riverside County as a conservation easement for preservation purposed in perpetuity. The %-acre of CA-RIV 237 shall not be subject to development, archeological testing or ground-disturbing activities. The Planning Department shall be notified in the event any resources are discovered. Place the above Condition of Approval on this project to require cultural resource monitoring during all earthmoving activities. On-going during all earthmoving phases of the project Planning Department and Public Works Department Cultural Resources Cause a substantive adverse change in the significance of paleontological resources. 26. A qualified paleontological monitor shall provide cultural resources sensitivity training (a 15 rnin. presentation) for all project personnel. 27. All impacts to the sandstone and fanglomerate members of the Pauba Forrnation shall be monitored full time at the beginning of grading. A trained paleontological monitor shall be present during ground disturbing activities within the project area determined likely to contain paleontological resources. Monitoring will be adjusted to spot checking if initial monitoring shows negative results. 28. Upon encountering any significant fossils, salvage of all fossils in the area shall be conducted with additional field staff and in accordance with modern paleontological techniques. 29. Any significant fossils recovered shall be prepared to a reasonable point of identification. Excess sediment or matrix will be rernoved from the specimens to reduce the bulk and cost of storage. Itemized catalogs of all material collected and identified shall be provided to the museum repository along with the specimens. G:IPlanning\2006IPA06-0370 PHS Tentative Map (TTM35181 )IPlanninglCEQAIMitigation Monitoring Program.doc 6 Specific Process: Mitigation Milestone: Responsible Monitoring Party: General Impact: Mitigation Measure: Specific Process: Mitigation Milestone: Responsible Monitoring Party: General Impact: 30. Prior to the issuance of a building permit, a report documenting the results of the monitoring and any salvage activities and the significance of the fossils shall be prepared. 31. Any significant fossils recovered, along with the itemized inventory of the specimens, shall be deposited in a museum repository for permanent curation and storage. The Planning Department shall be notified in the event any resources are discovered. Place the above Condition of Approval on this project to require cultural resource monitoring during all earthmoving activities. On-going during all earthmoving phases of the project Planning Department and Public Works Department Geology and Soils Expose people or structures to potential substantial adverse effects, including the risk of loss, injury, or death involving strong seismic ground shaking. 32. Seismically resistant structural design in accordance with local building ordinances shall be followed during the design of all structures. 33. Subsequent geotechnical reviews shall be conducted prior to the development of Parcels 1, 2, and 3 created by this project. Building and Safety staff will verify compliance with the above mitigation measure as part of the grading and building plan check review processes. Prior to issuance of a grading permit and building permits Planning Department, Building and Safety Department, and Public Works Department Geology and Soils Result in substantial soil erosion or the loss of topsoil, be located on a geologic unit or soil that is unstable, or that would become unstable as a result of the project, and potentially result in on- or off-site landslide, lateral spreading, subsidence, liquefaction or collapse, or be located on expansive soil, as defined in Table 18- G:\Planning\2006\PA06-0370 PHS Tentative Map (TTM351Sl)\Planning\CEQA\Mitigation Monitoring Program.ooe 7 Mitigation Measure: Specific Process: Mitigation Milestone: Responsible Monitoring Party: General Impact: Mitigation Measure: Specific Process: 1-B of the Uniform Building Code (1994), creating substantial risks to life or property. 34. Prior to the issuance of grading and building permits, the applicant shall submit to the Public Works Department an erosion control plan prepared in accordance with the requirements of the Temecula Municipal Code, Section 18.15, Erosion and Sediment Control. 35. Prior to the issuance of occupancy permits, landscape plans shall be prepared for all slopes created by the grading and fill of these sites consistent with "Slope Planting Guidelines" and the Development Code, and shall provide erosion contrc.l on undeveloped portions ofthe site. 36. Prior to the issuance of grading and building permits, the recommendations contained in soils report(s), geotechnical report, and slope stability report shall be implernented. 37. Plants selected for slope landscaping shall be light-weight, deep rooted type vegetations that require little water and are capable of surviving with little irrigation. Planning, Public Works, and Building and Safety staff 'will verify compliance with the above mitigation measure as part of the grading and building plan check review processes. Prior to issuance of a grading permit and building permits Planning Department, Building and Safety Department, and Public Works Department Noise 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 agencies. 38. Prior to issuance of a building permit, the project applicant shall submit an acoustical analysis prepared by a certified acoustical engineer to ensure that noise levels will not exceed an Ldn of 75 dBA exterior or an Ldn of 55 dBA interior at the receptor. The analysis shall include requirements such as special design measures to protect surrounding noise sensitive uses from ultimate projected operational noise levels. Planning staff will verify compliance with the above mitigation measures as part of the building plan check review process G:IPlanningI2006IPA06-0370 PHS Tentative Map (TTM35181)\PlanningICEQAIMitigation Monitoring Program.doc 8 Mitigation Milestone: Responsible Monitoring Party: Prior to issuance of building permits Planning Department G:\PlanningI2006\PA06-0370 PHS Tentative Map (TTM35181 )IPlanning\CEQAIMitigatlon Monitoring Program.doc 9 ATTACHMENT NO.9 PUBLIC CORRESPONDENCE G:IPlanning\2006IPA06-0370 PHS Tentative Map (TTM35181 )IPlanninglPCIPC STAFF REPORT.doc 21 TOMARAS & OGAS, LLP 1075S-FScRlPPSPoWAYPARKWAY #281' SAN DIEGO, CAIJFORNIA 92131 TEIEPHoNE(ll58)554-0550' FACSIMIlE(ll58)777./i765 . WWW.MlOWLAW.COM Kathryn A. Ogas Brenda L. T omaras kogaS@mtowlaw.com btomaras@mtowIaw.com August 17, 2007 VIA FACSIMILE and U.S. MAIL Dana Schuma, Associate Planner City ofTemecula Planning Department 432000 Business Park Drive Temecula, CA 92590 Re: Development Agreement (pA07-0220), General Plan Amendment (pA07-0048), Tentative Tract Map No. 35181 (PA06-0370), and Development Plan (pA06- 0369) with Minor Exception (p A07-0090) - Initial StudylMitigated Negative Declaration Dear Ms. Schuma: Our firm represents the Pechanga Band ofLuiseiio Indians. The Pechanga Band of Luiseiio Indians of the Pechanga Indian Reservation, a federally recognized Indian Tribe (hereinafter "Pechanga Tribe"), submits the following comments on the Initial StudyIMitigated Negative Declaration for the Temecula 84/PHS Project. We request that these comments, as well as subsequent comments submitted by the pechanga Tribe, be included in the record for approval of the Project. As the City is aware, the Tribe has been working with the Garrett Group to address the protection and treatment of the cultural resources within the Project area, and intends to continue working and cooperating with the Garrett Group in such efforts. The Tribe has had the opportunity to review the Initial Study/Mitigated Negative Declaration and finds that the conditions and mitigation proposed to address cultural resources are in line with the Tribe's prior comment letters and suggested mitigation language. As such, the Tribe is in agreement with the proposed mitigation, The Pechanga Tribe looks forward to continued cooperation with the City ofTemecula and the Garrett Group in protecting the invaluable Luiseiio cultural resources found. in the Project Letter to Dana Schuma Re: Temecula 84 ISIMITIGATED NEG DEC. Page 2 area. If you have any questions, please do not hesitate to contact Ms. Laura Miranda at (951) 676-2768, Ext. 2137. Very Truly Yours, TOMARAS & OGAS, LLP ~ ..------;--- . . .' I 0(/ / ()nl CA./YT AS? AJi_n Gl 0, . - i\- Brenda L. Tomaras Attorneys for the Pechanga Band ofLuiseilo Indians CC: Laura Miranda, Deputy General Counsel Pechanga Cultural Resources Department Debbie Ubnoske, Director of Planning Nancy Daniels, Garrett Group .d 0 ",vUNTY OF RIVERSIDE · HEA~{H SERVICES AGENCY 0 ~.JC DEPARTMENT Of ENVIRONMENTAL HEALTH ~,~.,,~,.,,"~,~"",.~.,',..._.,..,~,.."- .'".."...,"", ,,,.,,."-,,,.,,~,.,,~,.~...,,_..,,,.._,~,.,'.., -~"-'''~,.,."...,, ,...,,,,,.~..,, ~"",."".,'-",1 City ofTemecula Planning Department C/o Dana Schuma, Associate Planner PO BOX 9033 Temecula, CA 92589-9033 DlI~E 0 WI, r! 'D :rtl AUb 1 3 '~~7 ' ! ... . . ""1 I!!lf...o.,;" n...r.. . ' namllfifJ...""alfment ' 08 August 2007 RE: Notice of Negative Declaration Comment for PA07-0220, PA07-0048, PA06-370, P A06-0369 and P A07 -0090 The Department of Environmental Health (DEH) has received and reviewed the Negative Declaration and has no comments in objection to the project described above. The development plan application for the tentative tract map 35181 and a development plan with a minor exception for a 608,934 sf industrial building on 32 acres, and for the future development of the remaining 52 acres to include industrial, commercial, retail, high-density residential and or public institutional facility land uses will not have a significant impact upon the environment. A water and sewer availability letter shall be required by the City of Temecula at time of building plan submittal to the City. Any food vending or restaurant use of the building shall require food plan check compliance by the County of Riverside DEH. If your have any questious, please do not hesitate to call me at 951.955.8980 S7J/(I;J Gregor Dellenbach, REHS Local Enforcement Agency. P.O. Box 1280, Riverside, CA 92502-1280 . (909) 955-8982 . FAX (909) 781-9653 . 4080 Lemon Street. 9th Floor, Riverside, CA 92501 Land Use and Water Engineering -0 PO. Box 1206, Riverside, CA 92502"1206" (9091 955-8980 . FAX (909) 955-8903 . 4080 Lemon Street, 2nd Floor. Riverside, CA 92501 STATE OECAUFOBNIA _ ~~~.~.r..~.r. ~nvern.JJT D~~(cf! (I WlL~r '.- n\ ;.;uci 27 2001 ,,' NATIVE AMERICAN HERITAGE COMMISSION 915 CAPJTOl MAll. ROOM 364 SACRAMENTO. CA 95814 (916)65S-<l2.S1 Fax (916) 657-5390 Web Site wwYtJlilhe_~,q(),! e-mail: ds_nahc@pacbell.net ." !::>y - '"'I . !J ...",-...' r ~r.mrrl1 e!IJ...".I~!m:;..... ..... ,,,,J . August 22, 2007 Ms. Dana Schuma, Associate Planner CITY OF TEMECULA P.O. Box 9033 T emecula, CA 92589-9033 Re: SCH#2007081042: CEPE< Notice of ComP.l.etion: draft Environmentallmoact Reoort IDEIR\ for Develop-ment, Aareement for Professional Hosoital Suoolv (PHS) and Citv of T emecula~ General Plan Amendment Tentative Tract Man and a Oevefonment Plan: Riversrde Countv'. California Dear Ms. Schumal: The Native American Heritage Commission is the smte's Trustee Agency for Native American Cultural Resources. The California Environmental Quality Act (CEQA) requires that any project that causes a substantial adverse change in the significance of an historical resource, that includes archaeological resources, is a 'significant effecf requiring the preparation of an Envirorimentallmpact Report (EIR) per CEQA guidelInes 9 15064.5(b)(c). In order to comply with this provisIon, the lead agency is required to assess whether the project will have an adverse impact on these rEl$ources within the 'area of potential effect (APEl', and if so, to mitigate that effect. To adequately assess the project-related impacts on historical rEl$Ources, the Commission recommends the following action: ..J Contact the a~~.~...:~... California Historic REl$ources Information Center (CHRIS)_ Contact information for the Inl_. ...~~_.. Center nearest you is available Iiom the State Office of Historic Preservation (9161ti53-7278)/ htto://www.ohop'arks.c.aoov/1068/files/lC%ZORo!'ter.odf The record search will determine: . If a part or the enti re APE has been preViously surveyed for cultural resources. . If any known cultural resources have already been recorded in or adjacent to the APE. . If the probability is low, moderate, or high that cultural rEl$Ources are located in the APE. . If a survey is required to determine whether previously unrecorded cultural resources are prEl$ent ..J If an archaeological inventory survey is required, the final slage is lite preparation of a professional report detailing the findings and recommendations of the records search and field survey. . The final report conlaining site forms, site significance, and mitigation measurers should be submitted immediately to the planning department All il.:.....~~on regarcing site locations, Native American human remains, and associated f1....~.~" objects should be in a separate confidential addendum, and not be made available for pubic disclosure. . The final wtilten report should be submitted within 3 months alter work has been completed to the appropriate regional archaeological Information Center. ..J Conlact the Native American Heritage Commission (NAI-\C) for: . A Sacred Lands FOe (SLF) search of the project area and information on tribal contacts in the project vicinity that may have additional cultural resource i..i~.."~~~,,. Please provide this office with the following citation folTriat to assistwith the Sacred Lands File seareh request USGS 7_5-minute ouadranole citation 1Nith f!ame tnwnshio_ ran~ and section: . . The NAHC advises the use of Native American Monitors to ensure proper identification and care given cultural rEl$ources Ihat may be discovered The NAHC recommends that contact be made with Native American Contacts on the 6;:'-_';;,~d list to get their input on potential project impact (APE). In some cases. the existence of a Native A.~.:~" cultural resources may be known only to a local tribe{s). ..J Lack of surface evidence of archeological resources dOEl$ not preclude their subsurface existence. . Lead agencies should include in their mitigation plan provisions for the :J~. .~:i~~.n and evaluation of ~"':J~..lJlly discovered archeological resources, per California Environmental Quality Act (CEQA) 915064.5 (f). In areas of identified archaeological sensitivity, a certified archaeologist and a culturally affiliated Native American, with knowledge in cultural resources, should monilor all ground-disturbing activities. . Lead agencies should include in their mitigation plan proVisiOIlS for the disposition of recovered artifacts, in consul1ation with culturally affiliated Native Americans. ..J Lead agencies should include provisions for discovery of Native American human remains or unmarked cemeteries in their mitigation plans. . CEQA Guidelines, Section 15064.5(d) requires the lead agency to work with the Native Americans identified by this Commission if the initial Study identifiEl$the presence or likely presence of Native American human remains within the APE. CEQA Guidelines provide foragreemenfl; with Native American, identified by the NAHC, to assure the appropriate and dignified treatment of Native American human remains and any associated grave liens. ,f Health and Safety Code g7050.5, Public Resources Code g5097.98 and Sec. g15064.5 (d) of the CEQA Guidelines mandate procedures to be followed in the event of an accidental discovery of any human remains in a location other than a dedicated cemetery. ..J Lead aaencies should consider avoidancR as defined in ~ 15370 of the CEOA Guidelines. when sionificant culturat resources are discovered dunna the course of oroiect ofannina p,eai feel ree to contact me at (916) 65~51 if you have any questions. /' I '/ . -- \ Attachment st of Native American Contacts ATTACHMENT NO.10 PARKING STUDY G:IPlanning\2006IPA06-0370 PHS Tentative Map (TTM35181 )IPlahnlnglPCIPC STAFF REPORT.doc . 22 PHS PARKING STUDY Backaround: Professional Hospital Supply (PHS) is a medical supply company located in the City of Temecula. The proposed project creates a 615,450 square foot warehouse/distribution facility to serve as their new distribution center and corporate headquarters. The City of Temecula has requested this parking study to show how the proposed building can be parked in several different ways in order to meet the requirements of PHS as well as other potential users in the future. Warehouse Ooerations/Parkina Reauirements: Distribution buildings are designed much differently than regular industrial buildings. They are much larger (often 10-15 times larger than standard industrial buildings) and the majority of the space is allocated to racking for merchandise. Because of the increased use of floor space for racking, distribution operations have an extremely low employee count per square foot compared to manufacturing or other industrial users. Since the movement of freight is a major component of their operation, truck door requirements also increase significantly. Recognizing that distribution facilities have lower employee counts, many jurisdictions have adopted reduced parking requirements. In those jurisdictions that have not adopted lower requirements, alternate parking plans are usually allowed. These alternates are based upon the inverse relationship between truck door and employee parking requirements. The alternative parking plans show two different striping plans. The first plan stripes only the number of parking spaces needed per the lower employee count and allows for the extra truck door locations. The second plan shows how the site can accommodate the number of spaces required by existing code. This added striping assumes as the number of employees increase, the amount of storage space and freight decreases, thus lessening the number of truck doors required. Therefore, areas in front of unneeded truck doors are able to accommodate additional automobile parking. Some of the jurisdictions that recognize the individual needs of large distribution facilities by allowing future parking stalls to be shown in the truck courts include: The Cities of Los Angeles, Riverside, Industry, and Chino along with the Counties of Riverside and San Bernardino. PHS Staffing Analysis: PHS operates 24 hours per day/seven days per week. The analysis below shows the flow of employees throughout the day. Shift change overlaps are shown to account for arriving and departing employees. In addition, since many employees carpool, are dropped off, or take public transportation, actual car counts were conducted to understand the maximum number of cars per shift. PHS EMPLOYEE ANALYSIS I Shift Start Time I 6:00 am - 9:00 am 110:00 am I 2:00 pm - 3:00 pm I I 5:00 pm - 7:30 pm I 1 9:30 pm - 10:30 pm Max # Employees 259 274 298 88 42 # of Cars 1 213 I 225 I 245 I 72 I 35 I The striping plan shown on the Development Plan provides 399 striped regular spaces and 8 additional Handicap Accessible stalls as well as corresponding bicycle and motorcycle parking. The alternate striping plan provides 778 stalls and 16 Handicap Accessible stalls in addition to the corresponding Bicycle/Motorcycle spaces. PARKING PLAN COMPARISON Type Regular Parking Stall Handicap Accessible Bicycle Motorcycle . Develo,?ment Plan . 399 8 24 7 Alternate Plan I 778 I 16 I 24 I 15 I These two plans allow for as much flexibility as possible in the use of the building. Initially, it can be striped according to PHS' use and allow for the maximum number of truck bays. In the event that the building changes uses, a simple re-striping allows for more employees and fewer truck positions. ATTACHMENT NO.11 STATEMENT OF JUSTIFICATION G:IPlanningI2006\PA06-0370 PHS Tentative Map (TTM35181)IPlanningIPCIPC STAFF REPORT.doc 23 The Garrett Group Land & Real Estate Investment Management _,.____,,~,__.~. . =.".=""n."~...__._ August 15, 2007 Dana Schuma Planner City of Temecula 43200 Business Park Drive Temecula, CA 92590 RE: PROFESSIONAL HOSPITAL SUPPLY Dear Dana: We are requesting exceptions in two areas in regards to the design of the corporate headquarters for Professional Hospital Supply ("PHS"). As you know, we all share the common goal of retaining PHS in the City of T emecula as a major employer, generator of sales tax revenue, and good corporate citizen. Their growth has been tremendous and it has been difficult to locate a site within the City limits that accommodates both their needs as a corporate headquarters and distribution facility. The proposed site is the only such site available but does require a higher FAR in order to achieve the facility size required. Therefore, we are requesting an exception to the Floor Area Ratio ("FAR") not to exceed 45%. In addition to the huge benefit of retaining PHS in the City of Temecula, the following design enhancements have been made: . Enhanced architecture throughout · Articulation and architectural features including a cornice atop the office portion · Planned truck routing providing for signature PHS vehicles along the front and less attractive traffic in the back · An additional 5% of landscaping beyond that which is required · Pedestrian friendly features include an auto court and separated auto/truck parking, decreasing truck emissions in the office area · Enhanced concrete areas to help cool the pedestrian environments and reduce asphalt coverage · State-of-the-art bio-swales and storm water treatment -=-~=-=",.",=~,,-".....,,-~,-' '.'-",..',"';:;- One BetterWorJd Circle. Suite 300 'Temecula, California 92590 Phone: 951.506.6556 Fax: 951.506.4831 'www.TheGarrettGroupLLC.com Ms. Dana Schuma August 15, 2007 Page Two . Larger trees than required in the pedestrian environment . Light colored roofing to help cool and reduce interior heat gain . Dual glazing glass exceeding the state title 24 requirements. The enhanced architecture includes a cornice along the top of the office portion of the building to provide visual screening and assure that the proportion is appropriate for the three story office element. This cornice exceeds the 50' height limitation by approximately 8 inches. Therefore, we are also requesting an exception to accommodate this architectural feature. We hope you will share our enthusiasm for the project and approve these two exceptions. If you have any questions or if I can provide any further information, please let me know. Sincerely, Nancy E. niels Project Manager ATTACHMENT NO. 12 NOTICE OF PUBLIC HEARING G:IPlannlng\2006IPA06-0370 PHS Tentative Map (TTM35181)IPlanningIPCIPC STAFF REPORT.doc 24 Notice of Public Hearing A PUBLIC HEARING has been scheduled before the City of Temecula PLANNING COMMISSION to consider the matter described below: Case No: Applicant: Location: Proposal: Planning Application Nos. PA07-0220, PA07-0048, PA06-0370, PA06-0369, & PA07-0090 Temecula Properties, LLC Generally located at the northwest corner of Dendy Parkway and Winchester Road A Development Agreernent, General Plan Amendment, Tentative Tract Map, and Development Plan with a Minor Exception for a 608,934 square foot industrial building on 32 acres, and for the future developrnent of the remaining 52 acres to include industrial, commercial, retail, high-density residential, and/or public institutional facility land uses In accordance with the California Environrnental Quality Act (CEQA), the proposed project will not have a significant impact upon the environment based upon a completed Environrnentallnitial Study and the incorporation ofthe attached Mitigation Monitoring Plan. As a result, a Mitigated Negative Declaration will be issued in compliance with CEQA. Dana Schuma, Associate Planner Environmental: Case Planner: Place of Hearing: City of Temecula, Council Chambers 43200 Business Park Drive, Temecula, CA 92590 Date of Hearing: September 5, 2007 Time of Hearing: 6:00 p.m. Any person rnay submit written comrnents to the Planning Commission before the hearing or may appear and be heard in support of or opposition to the approval of the project at the time of hearing. If you challenge the project in court, you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice, or in written correspondence delivered to the Planning Commission at, or prior to, the public hearing. The proposed project application may be viewed at the Temecula Planning Department, 43200 Business Park Drive, Monday through Friday from 9:00 a.m. until 4:00 p.m. Questions concerning the project may be addressed to the case planner at the City of Temecula Planning Departrnent, (951) 694-6400. y J PHS Development Agreement\PJanning\NOPH PHS.doc JOINT CITY COUNCIL/RDAITPFA BUSINESS Ii - I. ITEM NO. 16 I I Approvals City Attorney Director of Finance City Manager ~ /J1l (J(L, CITY OF TEMECULA and TEMECULA REDEVELOPMENT AGENCY and TEMECULA PUBLIC FINANCING AUTHORITY AGENDA REPORT TO: City Council/ Executive Director / City Manager/ Agency Members / Board Members FROM: Genie Roberts, Director of Finance DATE: September 25, 2007 SUBJECT: Issuance of Tax Allocation Bonds by the Redevelopment Agency of the City of Temecula for the Temecula Redevelopment Project NO.1 RECOMMENDATION: 1. That the City Council adopt a resolution entitled: RESOLUTION NO. 07- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA APPROVING THE ISSUANCE BY THE REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA OF TAX ALLOCATION BONDS 2. That the Temecula Redevelopment Agency adopt a resolution entitled: RESOLUTION NO. RDA 07- A RESOLUTION OF THE BOARD OF DIRECTORS OF THE TEMECULA REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA AUTHORIZING THE ISSUANCE AND SALE OF TAX ALLOCATION BONDS IN CONNECTION WITH TEMECULA REDEVELOPMENT PROJECT NO.1, AND APPROVING RELATED DOCUMENTS AND ACTIONS 3. That the Temecula Public Finance Authority adopt a resolution entitled: RESOLUTION NO. TPFA 07- A RESOLUTION OF THE BOARD OF DIRECTORS OF THE TEMECULA PUBLIC FINANCING AUTHORITY AUTHORIZING THE PURCHASE AND SALE OF TAX ALLOCATION BONDS OF THE REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA, AND APPROVING OTHER MATTERS RELATED THERETO BACKGROUND: On July 24,2007, the Redevelopment Agency adopted a Resolution entitled, "A Resolution of the Board of Directors of the Temecula Redevelopment Agency of the City of Temecula Designating Consultants in Connection With the Proposed Issuance of Tax Allocation Bonds for Parking Facilities and Authorizing and Directing Certain Actions With Respect Thereto", expressing the intent of the Agency to issue tax allocation bonds to finance a parking facility, and 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 Staff and consultants have been working to prepare the necessary documents to issue the bonds, including a supplement to the indenture with respect to outstanding Redevelopment Agency bonds which provides for the terms of the proposed bond issue, a preliminary official statement which describes the bond issue and is to be used to market the bonds to prospective investors, a bond purchase agreement pursuant to which the bonds would be sold, and a continuing disclosure certificate regarding ongoing disclosure of the Agency over the term of the bonds with respect to the Temecula Redevelopment Project NO.1 and related matters. It is proposed that the proceeds of the bonds be used to finance redevelopment activities of the Redevelopment Agency within or of benefit to the Temecula Redevelopment Project NO.1. The primary activities anticipated to be financed with proceeds of the bonds include (i) the acquisition of the East Parking Facilities, consisting of a multi-level public parking structure that will accommodate a minimum of 936 vehicles (including 75 parking spaces designated as park and ride spaces) on the southerly end of a parcel located adjacent to the Promenade Mall between Macy's and Edwards Cinemas, and (ii) a portion of the costs of the Old Town parking structure, and the Old Town infrastructure street improvements. Bond proceeds may also be used for other authorized redevelopment facilities. The proposed bond issue will be payable solely from a pledge of the tax increment 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. A portion of the proceeds of the bonds will be held in an escrow fund, and will be available to fund redevelopment activities only if the tax increment revenues from the Temecula Redevelopment Project No. 1 increase to allow for sufficient tax increment revenues to pay all outstanding indebtedness of the Redevelopment Agency as well as the debt service on the proposed bond issue, plus a coverage factor required by the Redevelopment Agency's covenants with respect to its outstanding indebtedness. Based on a tax increment study commissioned by the Redevelopment Agency (and referred to in the preliminary official statement to be approved), Agency Staff reasonably anticipates sufficient growth in tax increment revenues to be able to release all of the escrowed funds for use in financing redevelopment activities. Proceeding in this manner will save the costs that would otherwise be incurred if the Redevelopment Agency waited for tax increment revenues to grow before issuing additional indebtedness. However, should tax increment revenues not increase in the next few years as anticipated, bond proceeds escrowed may be used to redeem a portion of the outstanding bonds. In order to issue the bonds, the Redevelopment Law requires that the City Council approve the issuance of the bonds by the Redevelopment Agency. In addition, in orderforthe Redevelopment Agency to sell the bonds on a negotiated basis with Stone & Youngberg LLC, the bond underwriter that has been working with the Redevelopment Agency on the bond issue (the "Underwriter"), relevant State law requires that the Temecula Public Financing Authority buy the bonds from the Redevelopment Agency for immediate resale to the Underwriter. The purchase price from the Redevelopment 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 Redevelopment Agency resolution being presented for approval authorizes the issuance of the bonds and approves the related financing documents including a draft of a preliminary 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 mid October. 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 October 25, 2007. SPECIFIC ACTIONS: The action requested of the City Council is to adopt a resolution approving the issuance of the bonds by the Redevelopment Agency. The action requested of the Redevelopment Agency is to adopt a resolution authorizing the issuance of the bonds and approving the related financing documents. The action requested of the Public Financing Authority is to adopt a resolution approving the purchase of the bonds from the Redevelopment Agency and the immediate resale of the bonds to the Underwriter. 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 increment revenues of the Redevelopment Agency. The Redevelopment Agency will be obligated to use tax increment revenues from the Temecula Redevelopment Project NO.1 each year to pay the debt service on the bonds, and to pay the annual costs of administering the bond program. ATTACHMENTS: Resolution No. 07-_ Resolution No. RDA 07- Resolution No. TPFA 07- Preliminary Official Statement First Supplemental Indenture of Trust Form of Continuing Disclosure Certificate (Appendix E) Bond Purchase Agreement RESOLUTION NO. 07- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA APPROVING THE ISSUANCE BY THE REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA 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 2007 Tax Allocation Bonds (Subordinate Lien) (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 $17,500,000, 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 25th day of September , 2007. Chuck Washington, 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. 07- was duly and regularly adopted by the City Council of the City of Temecula at a meeting thereof held on the 25th day of September , 2007, by the following vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: ABSTAIN: COUNCIL MEMBERS: Susan W. Jones, MMC City Clerk RESOLUTION NO. RDA 07- A RESOLUTION OF THE BOARD OF DIRECTORS OF THE TEMECULA REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA AUTHORIZING THE ISSUANCE AND SALE 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 revenue bonds (as further described below, the "Bonds"), under the provisions of the Law to finance such activities, with the payment of the principal of and interest on the Bonds to be secured by a pledge of the tax increment revenues received by the Agency from the Redevelopment Project (the "Tax Increment Revenues"): (a) on a parity with the pledge thereof to the payment of the Agency's Temecula Redevelopment Project No. 1 2006 Tax Allocation Bonds, Series B (Subordinate Lien); and (b) subordinate to the pledge thereof with respect to the Senior Obligations (as defined in the Indenture referred to in Section 5 below). 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 2007 Tax Allocation Bonds (Subordinate Lien) (the "Bonds") in the initial principal amount of not to exceed $17,500,000. The Bonds shall be issued pursuant to the Law and the Indenture of Trust, dated as of December 1, 2006 (the "Original Indenture"), by and between the Agency and U.S. Bank National Association, as trustee (the "Trustee"), as amended and supplemented by a First Supplemental Indenture of Trust, dated as of October 1, 2007 (the "First Supplement"), between the Agency and the Trustee. The Agency hereby approves the First Supplement in the form on file with the Secretary. The Executive Director is hereby authorized and directed to execute, and the Secretary is hereby authorized and directed to attest, the First Supplement, in such form, 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 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, except as expressly modified by the First Supplement. Section 6. The Agency hereby approves the bond purchase contract (the "Bond Purchase Agreement"), 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 Executive Director is hereby authorized and directed to execute the Bond Purchase Agreement, in such form, 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 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 2.00% of the principal amount of the Bonds, the net interest cost of the Bonds does not exceed 6.50%, and the initial principal amount of the Bonds is not in excess of $17,500,000. Section 7. 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 Disclosure 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 8. 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 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 9. The Continuing Disclosure Certificate, in the form on file with the Secretary, is hereby approved. The Executive Director is hereby authorized and directed 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 10. The Chairperson, the Vice Chairperson, 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. 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 11. 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 25th day of September , 2007. Maryann Edwards,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 07- 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 25th day of September , 2007, by the following vote: AYES: BOARD MEMBERS: NOES: BOARD MEMBERS: ABSENT: BOARD MEMBERS: ABSTAIN: BOARD MEMBERS: Susan W. Jones, MMC City Clerk/Board Secretary RESOLUTION NO. TPFA 07- A RESOLUTION OF THE BOARD OF DIRECTORS OF THE TEMECULA PUBLIC FINANCING AUTHORITY THE PURCHASE AND SALE 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 $17,500,000 aggregate initial principal amount of the Agency's Temecula Redevelopment Project No. 1 2007 Tax Allocation Bonds (Subordinate Lien) (the "Bonds"), with the purchase price to be paid 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 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; provided, however, that, the net interest cost of the Bonds shall not exceed 6.50% per annum and the Underwriter's discount (without regard to any original issue discount) shall not be more than 2.00% of the principal amount of the Bonds. The final principal amount of the Bonds shall be the amount set forth in the executed Bond Purchase Agreement, not to exceed an aggregate of $17,500,000. The approval of any additions or changes in such form of the Bond Purchase Agreement shall be conclusively evidenced by the execution and delivery by the Executive Director or his designee of the Purchase Contract. Section 7. The Chairperson, 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 25th day of September , 2007. Chuck Washington, 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 07- was duly and regularly adopted by the Board of Directors of the Temecula Public Financing Authority at a meeting thereof held on the 25th day of September, 2007, by the following vote: AYES: BOARD MEMBERS: NOES: BOARD MEMBERS: ABSENT: BOARD MEMBERS: ABSTAIN: BOARD MEMBERS: Susan W. Jones, MMC City Clerk/Board Secretary Draft dated September 18, 2007 PRELIMINARY OFFICIAL STATEMENT DATED ,2007 NEW ISSUE - BOOK-ENTRY ONLY NOT RATED In the opinion of Quint &. Thimmig LLP, San Francisco, California, Bond Counsel, subject, however, to certain qualifications described herein, under exi~ting law, the intere~t on the 2()()7 BonJ~ i~ excludable from gro~~ income of the owner~ thereofforfeJeral income tax purpo~e~ and i~ not included a~ an item aftax preference in computing the federal alternative minimum tax for inJiviJual~ and corporation~ under the Internal Revenue Code of 1986, a~ amended, but i~ taken into account in computing an aJju~tment u~eJ in Jetennining 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 MA TIERS" herein. $15,535,000' REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA TEMECULA REDEVELOPMENT PROJECT NO.1 2007 TA.X ALLOCATION BONDS (SUBORDINATE LIEN) (RIVERSIDE COUNTY, CALIFORNIA) Dated: Date of Issuance Bonds Due: December 15, as set forth on the inside front cover Proceeds from the sale by the Redevelopment Agency of the City of Temecula (the "Agency") of its Temecula Redevelopment Project NO.1 2007 Tax Allocation Bonds (Subordinate Lien) (the "2007 Bonds") will be used to (i) finance redevelopment activities within or of benefit to the Temecula Redevelopment Project NO.1 (the "Project Area"), including establishing an escrow fund for such purposes, subject to release upon ~ati~faction of certain condition~ ~pecified herein, (ii) e~tabli~h a Re~erve Account for the 2007 Bond~, (iii) fund capitalized intere~t with re~pect to the portion of Bond proceed~ depo~ited into the E~crow Fund to June 15, 2010 and (iv) provide for the co~t~ ofi~~uing the 2007 Bond~. Interest on the 2007 Bonds will be payable semi-annually on each June 15 and December 15 (each an "Interest Payment Date," as applicable), commencing June 15, 2008. The 2007 Bondswill be issued in fully-registered form without coupons and will be registered in the name of Cede &. Co., as nominee for The Depository Trust Company, New York, New York ("DTC"). DTCwill act as securities depository for the 2007 Bond~. Purcha~e~ of beneficial intere~t~ in the 2007 Bond~will be made in book-entryfonn only in denomination~ of$5,OOO or any integral multiple thereof. Purcha~er~ of ~uch beneficial intere~t~ will not receive phy~ical certificate~ repre~enting their intere~t~ in the 2007 Bond~. Payment of principal of intere~t and premium, ifany, on the 2007 Bond~will bemade directly to DTC or it~ nominee, Cede & Co., ~o long a~ DTC or Cede & Co. is the registered O\vner of the 2007 Bonds. Disbursement of such payments to the DTC Participants (as defined in Appendix G hereto) is the responsibility of DTC and disbursement of such payments to the Beneficial Owners (as defined in Appendix G hereto) is the responsibility of the DTC Participants, as more fully described herein. See "THE 2007 BONDS Book-Entry and DTC" herein. The 2007 Bond~ will be i~~ued on a ~ubordinate ba~i~ to the Redevelopment Agency of the City of Temecula Temecula Redevelopment Project NO.1 2002 Tax Allocation Bond~ (the "2002 Bond~") and the Redevelopment Agency of the City of Temecula Temecula Redevelopment Project NO.1 2006 Tax Allocation Bonds, Series A (the"2006 Series ABonds," together with the 2002 Bonds and any parity Senior Debt, are referred to herein as the "Senior Debt") and on a parity with the Redevelopment Agencyofthe City ofTemecula Temecula Redevelopment Project NO.1 2006 Tax Allocation Bonds, Series B (Subordinate Lien) (the "2006 Series B Bonds," together with any Parity Subordinate Obligations, the "Subordinate Debt"). The 2007 Bond~ will be i~~ued under an Indenture of Tru~t, dated a~ of December 1, 2006 (the "Original Subordinate Indenture"), a~ ~upplemented by a Fir~t Supplemental Indenture of Tru~t, dated a~ of October 1, 2007 (the "Fir~t Supplement" and together with the Original Subordinate Indenture, the "Subordinate Indenture" 1, each by and between the Agency and U.S. Bank National A~~ociation, a~ tru~tee (the "Tru~tee"). The 2007 Bondswill be sold to the Temecula Public Financing Authority (the "Authority") for immediate resale to the Underwriter. The 2007 Bonds are special obligations of the Agency and are payable from and secured by a pledge of a portion of the Tax Increment Revenues (as defined herein) receivable by the Agency with re~pect to the Project Area pur~uant to Article 6 of Chapter 6 of the Community Redevelopment Law (herein referred to a~ the "Tax Increment Revenue~"l, ~ubject to the provi~ion~ of the Subordinate Indenture pennitting the application thereof for other purpo~e~, and by a pledge of amount~ in certain fund~ and account~ e~tabli~hed under the Subordinate Indenture, a~ further di~cu~~ed herein, with the pledge for the 2007 Bonds subordinate to the pledge of and lien on the Tax Increment Revenues under the Senior Indenture (as defined herein), the Financial Guaranty Agreement, the 2006 Financial Guaranty Agreement (as each such agreement is defined herein) and certain debt that maybe incurred by the Agency subsequent to the issuance of the 2007 Bonds. The Agency may issue debt on a parity with the Senior Debt or on a parity with the 2006 Serie~ B Bond~ and the 2007 Bond~, ~ubject to the provi~ion~ of the Subordinate Indenture. The 2007 Bonds are subject to optional redemption, mandatory redemption and special mandatory redemption prior to maturity. See "THE 2007 BONDS - Redemption" herein. MATURITY SCHEDULE (See Inside Cover) This cover page contains information for quick reference only It is not intended to be a summary of all factors relating to an investment in the 2007 Bonds. Investors should review the entire Official Statement before making any investment decision with respect to the 2007 Bonds. lHE 2007 BONDS ARE PAYABLE FROM TAX INCREMENT REVENUES ON A SUBORDINATE BASIS TO lHE 2002 BONDS, lHE 2006 SERIES A BONDS, AND CERTAIN OlHER OBLIGATIONS (COLLECTIVELY, "SENIOR OBLIGATIONS") AS DESCRIBED HEREIN. THE 2007 BONDS ARE NOT RA IED BY ANY RATING AGENCY, INVOLVE A HIGH DEGREE OF RISK AND ARE NOT SUITABLE FOR ALL INVESTORS. SEE "RISK FACTORS." 'Preliminary, subject to change. lHE 2007 BONDS ARE SPECIAL OBLIGATIONS OF lHE AGENCY PAY ABLE FROM THE TAX INCREMENT REVENUES, AS DESCRIBED HEREIN. AND AMOUNTS IN CERTAIN FUNDS AND ACCOUNTS MAINTAINED UNDER TIlE APPLICABLE INDENTURE AND, AS SUCR ARE NOT ADEBT OF lHE CITY OF lEMECULA (THE"CITY") OR THE STAlE OF CALIFORNIA(THE"STA lE") OR ANY OF THE STATE'S POLITICAL SUBDIVISIONS (OTIlER TIlAN TIlE AGENCY. TO THE LIMITED EXTENT SET FORTH IN TIlE SUBORDINA lE INDENTURE), AND NEIlHER lHE CITY NOR lHE STAlE OR ANY OF ITS POLITICAL SUBDIVISIONS (OlHER lHAN lHE AGENCY) IS LIABLE THEREFOR. lHE 2007 BONDS ARE NOT PAYABLE FROM, AND ARE NOT SECURED BY. ANY FUNDS OF TIlE AGENCY. OTHER TIlAN TIlE T ,,"X INCREMENT REVENUES AND TIlE FUNDS PLEDGED PURSUANT TO TIlE SUBORDINATE INDENTURE. NEIlHER THE MEMBERS OF lHE AGENCY NOR ANY PERSONS RESPONSIBLE FOR lHE EXECUTION OF THE 2007 BONDS ARE LIABLE PERSONALL YFOR P A Yl\.1ENT OF THE 2007 BONDS. The 2()()7 Bonds are offered when. as and ifissued. subject to the approval as to their legality by (juint & Thimmig LLP. San Francisco. Califomia. Bond Counsel, and subject to cn1ain other conditions. Certain legal matters will be passed uponfor the Agency by Richards, Watson & Gershon, Los Angeles, Califomia. ading as Counsel to the Agency, and by AfcFm1in & Anderson LLP, Lake Forest, California, in its capadty as Disclosure Counsel to the Agency. Stradling, Yocca. Cm1son & Rauth a Professional Corporation, Newport Beoch California, is acting as [Tnderwriter's Counsel. It is anticipated that the 2()()7 Bonds will be available for delivery through DTC in New York. New York. on or about .2()()7 Stone & Youngberg Dated: ,2007 Thefollowing language to be inserted by the printe}; in red, at the top of the PO::;Fonteover: PRELIMINARY OFFICIAL STATEMENT DATED ,2007 The following language to be inserted by the printer. in red, ve}tieanv along the left margin of the PO::; fi'ont cover: This Preliminary Official Statement and the information contained herein are subject to completion or amendment. Unuer no circumstances shall this Preliminary ()fficial Statement constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. MATURITY SCHEDULE REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA TEMECULA REDEVELOPMENT PROJECT NO.1 2007 T~X ALLOCATION BONDS (SUBuKUmATE LIEN) $ Serial Bonds Ease CUSlpw No. R79711] 11 %l CUSIP'" Yield ---1i2.:.t %l Maturity IDecember15l 2017 2018 2019 2020 2021 2022 2023 2024 2025 Principal Amount $ Intere~t Rate %l Yield %l CUSIP'" ~t Maturity IDecember15l 20()S 2009 2010 2011 2012 2013 2014 2015 2016 Principal Amount $ Intere~t ~ $ $ %l Tenn BonJ~ due December 15. 20 ~'o Tenn Bonds due December 15, 2038 Yield Yield %l CUSIP~J No. 879701 ~'o CUSIP~J No. 879701 $ %l E~crow Tenn BonJ~ due December 15, 2038 Yield %l CUSIP~J No. 879701 11 CUSIP@ A registered trademark of the American Bankers Association. Copyright iD 1999-211117 Standard & Poor's, a Division of The McGraw-Hill Companies, Inc. CUSIpoo data herein is provided by Standard & Poor's ClTSlpoo Service Bureau. This data is not intended to create a database and does not serve in any way as a substitute for the ClTSlpoo Service Bureau. CUSlpoo numbers are provided for convenience of reference only Neither the Agency nor the Underwriter take any responsibility for the accuracy of such numbers. REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA AGENCY BOARD MEMBERS Maryann Edwards, Chairperson Michael S. Naggar, Vice Chairperson Jeff Comerchero, Board Alember Ron Roberts, Board AI ember Charles W. Washington, Board AI ember 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 (Juint & Thirnrnig LLP San Francisco, California Disclosure Counsel McFarlin & Anderson LLP Lake Forest, California Underwriter's Counsel Stradling Y occa Carlson & Rauth, a Professional Corporation Newport Beach, California Fiscal Consultant HdL Coren & Cone Diamond Bar, California Financial Advisor Fieldman, Rolapp & Associates Irvine, California Trustee U.S. Bank National Association Los Angeles, California GENERAL INFORMATION ABOUT THE OFFICIAL STATEMENT Use ofOfficialStatement. This (lfficial Statement is submitted in connection with the offer and sale of the 2007 Bonds referred to herein and may not be reproduced or used, in whole or in part, for any other purpose. This (lfficial Statement is not to be construed as a contract with the purchasers of the 2007 Bonds. All summaries of the documents referred to in this (lfficial Statement are made subject to the provisions of such documents, respectively, and do not purport to be complete statements of any or all of such provisions. Estimates and Forecasts. When used in this Official Statement and in any continuing disclosure by the Agency, in any press release by the Agency 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," "will continue," "is anticipated," "estimate," "project," "forecast," "expect," "intend," and similar expressions identify "forward-looking statements" within the meaning ofthe Private Securities Litigation Reform Act of 1995, Section 2IE 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 subject to 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 (lfficial 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 (lfficial Statement. Limited Offering. 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 2007 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 2007 Bonds by a person in any jurisdiction in which it is unlawful for such person to make such an offer, solicitation or sale. Involvement ofUndenvriter. 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 over allot or effect transactions which stabilize or maintain the market price of the 2007 Bonds at a level above that which might otherwise prevail in the open market. Such stabilizing, if commenced, may be discontinued at any time. The Underwriter may offer and sell the 2007 Bonds to certain dealers and others at prices lower than the public offering prices set forth on the inside cover page hereof and said public offering prices may be changed from time to time by the Underwriter. THE 2007 BONDS HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, IN RELIANCE UPON AN EXEMPTION FROM THE REGISTRATION RE()UIREMENTS C< lNT AlNED IN SUCH ACT. THE 2007 B( lNDS HAVE N( IT BEEN REGISTERED OR QUALIFIED UNDER THE SECURITIES LAWS OF ANY STATE. TABLE OF CONTENTS Page INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 1 General ..................................................................... 1 The Agency and the Redevelopment Plan .......................................... 2 Purpose ofIssuance; Escrow of a Portion of Bond Proceeds . . . . . . . . . . . . . . . . . . . . . . . . . . .. 2 The 2007 Bonds .............................................................. 2 Source of Payment for the 2007 Bonds ............................................ 3 Parity Senior, Debt; Parity Subordinate Debt ........................................ 3 Bondowners Risks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 4 Continuing Disclosure ......................................................... 4 Tax Matters. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 4 Professionals Involved in the Offering . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 4 Additional Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 4 ESTIMATED SOURCES AND USES OF FUNDS ......................................... 5 Redevelopment Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 5 Escrow Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 5 DEBT SERVICE SCHEDULE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 8 THE 2007 BONDS .................................................................. 9 General Provisions ............................................................ 9 Redemption . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 9 Book-Entry and DTC ......................................................... 12 Discontinuance of DTC Services ................................................ 13 SECURITY FOR THE 2007 BONDS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 13 Tax Increment Revenues. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 13 Pledge of Tax Increment Revenues .............................................. 14 Limited Obligations .......................................................... 15 Application of Tax Increment Revenues .......................................... 15 Reserve Account . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 17 County Payment of Tax Increment ............................................... 18 Parity'Subordinate Debt ....................................................... 18 Additional Parity Senior Debt .................................................. 20 RISK FACTORS .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 22 2007 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 County Payment of Tax Increment Revenues. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 24 Seismic Factors and Flooding. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 24 Hazardous Substances. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 24 No Acceleration on Default .................................................... 24 Loss of Tax Exemption. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 24 IRS Audit of Tax-Exempt Bond Issues. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 25 Assumptions and Projections ................................................... 25 SPECIAL RISK CONSIDERATIONS SPECIFIC TO THE 2007 BONDS ...................... 25 Subordination of 2007 Bonds; Issuance of Additional Senior Debt. . . . . . . . . . . . . . . . . . . . .. 25 Limited Secondary Market . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 25 No Ratings of 2007 Bonds ..................................................... 26 LIMITATIONS ON T ~X INCREMENT REVENllES ..................................... 26 Property Tax Collection Procedure .............................................. 26 Supplemental Assessments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 26 -I- Tax Collector Fees ........................................................... 27 Unitary Property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 27 Property Tax Rite Limitations - Article XIIIA .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 27 ArtICle XIIIB of the California Constitution. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 28 Pass-Through Agreements; Other Contractual Obligations .. . . . . . . . . . . . . . . . . . . . . . . . . .. 28 Exclusion of Tax Increment Revenues for General Obligation 2007 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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 36 Description of the Project Area ................................................. 36 Proceeds of the 2007 Bonds .................................................... 36 Land Uses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 37 Development in the Project Area ................................................ 37 Assessed Valuation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 38 Appeals of Assessed Values . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 39 Direct and Overlapping Bonded Debt ............................................ 42 Project Area Pass-Through Agreements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 43 COVERAGE ANALYSIS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 43 THE TEMECULAPUBLIC FINANCING AUTHORITY. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 45 CERTAIN LEGAL MATTERS ........................................................ 45 Legal Opinions .............................................................. 45 Enforceability of Remedies .................................................... 45 CONTINUING DISCLOSURE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 45 ABSENCE OF LITIGATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 46 T~XMATTERS ................................................................... 46 l~ER\VRlTING.................................................................. 46 NO RATINGS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 46 PROFESSIONAL FEES ............................................................. 47 MISCELLANEOUS ................................................................ 47 APPENDLX A - SUMMARY OF CERTAIN PROVISIONS OF THE SUBORDINATE INDENTl~ ..................................................... A-I APPENDLX B - FISCAL CONSULT ANT' S REPORT ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. B-1 APPENDLX C TEMECULA REDEVELOPMENT AGENCY COMPONENT UNIT FINANCIAL STATEMENTS F< lR FISCAL '{EAR ENDING JUNE 30, 2006 .. C-I FORM OF OPINION OF BOND COUNSEL ............................ D-I - FORM OF CONTINUING DISCLOSl~ CERTIFICATE . . . . . . . . . . . . . . . .. E-I GENERAL INFORMATION REGARDING THE CITy.................... F-I BOOK-ENTRY SYSTEM... ... ... .... ... ... ... ... ... ... ... .... ... .. G-I APPENDLX D APPENDLX E APPENDLX F APPENDLX G - -11- [INSERT REGIONAL AREA MAP IN LIEU OF TIllS PAGE] OFFICIAL STATEMENT $ REDEVELOPMENT AGij~LY oli' IRE CITY OF TEMECULA TEMECULA REDEVELOPMENT PROJECT NO.1 2007 TA.X ALLOCATION BONDS (SUBORDINATE LIEN) (RIVERSIDE COUNTY, CALIFORNIA) INTRODUCTION This introduction is not a S11111111ary of this Official Statement. It is only a brief description of and guide to. and is qualified in its entirety by. more complete and detailed information contained in this Official Statement and the dOC11111ents S11111111arized or described herein. A filII review should be made of the entire Official Statement. The offering of the 200~ Bonds to potential investors is made onlv by means of this Official Statement. References to. and S11111111aries 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 dOC11111ent. General This Official Statement of the Redevelopment Agency of the City of Temecula (the "Agency") provides information regarding the sale by the Agency of its $ aggregate principal amount of Temecula Redevelopment Project No.1 2007 Tax Allocation Honds (Subordinate Lien) (the "2007 Bonds"). The 2007 Bonds will be issued on a subordinate basis to the Redevelopment Agency of the City of Temecula Temecula Redevelopment Project No. 1 2002 Tax Allocation Bonds (the "2002 Bonds") and the Redevelopment Agency of the City of Temecula Temecula Redevelopment Project No. 1 2006 Tax Allocation Bonds, Series A (the "2006 Series A Bonds" and together with the 2002 Bonds and any loans, bonds, notes, advances or indebtedness payable from Tax Increment Revenues on a parity with the 2002 Bonds and 2006 Series ABonds issued or incurred pursuant to and in accordance with the provisions of the Senior Indenture ("Senior Debt")) and on a parity with the Redevelopment Agency of the City of Temecula Temecula Redevelopment Project No. 12006 Tax Allocation Bonds, Series B (Subordinate Lien) (the "2006 Series B Bonds" and together with the 2007 Bonds and any future debt issued or incurred by the Agency on a parity with the 2006 Series B Bonds and 2007 Bonds "Subordinate Debt")). The 2007 Bonds are issued under an Indenture of Trust, dated as of December 1, 2006 (the "( )riginal Subordinate Indenture"), as supplemented by the First Supplemental Indenture, dated as oft lctober 1,2007 (the "First Supplement," and together with the ()riginal Subordinate Indenture, the "Subordinate Indenture"), each by and between the Agency and U.S. Bank National Association, as trustee (the "Trustee"). The 2002 Bonds were issued under an Indenture of Trust, dated as of April 1, 2002 (the 'X )riginal Senior Indenture"), by and between the Agency and the Trustee, and the 2006 Series A Bonds were issued under a First Supplemental Indenture of Trust, dated as of December 1, 2006 (the "First Supplemental Senior Indenture"), by and between the Agency and Trustee (together the "Senior Indenture," and together with the Subordinate Indenture, the "Indentures"). Definitions of certain capitalized terms used in this Official Statement are set forth in "APPENDIX A SUMMARY OF CERTAIN PROVISIONS OF THE SUBORDINATE INDENTURE." This ()fficial Statement contains brief descriptions of the 2007 Bonds, the Indentures, the Agency, and the Redevelopment Plan (as defined herein). Such descriptions do not purport to be comprehensive or definitive. All references in this ()fficial Statement to documents are qualified in their entirety by reference to those documents, and references to the 2007 Bonds are qualified in their entirety by reference to the forms of the 2007 Bonds included in the Subordinate Indenture. Copies of the Indentures and other documents described in this ()fficial Statement may be obtained from the Agency as described under the subheading "Additional Information" below. As indicated above, the Agency may issue Senior Debt secured under the Senior Indenture on a parity with the $28,055,000 aggregate principal amount of the 2002 Bonds, of which $ _ [$26,600,000] aggregate principal remains outstanding as of September 1, 2007, and the $18,105,000 'Preliminary, subject to change. aggregate principal amount of 2006 Series A Bonds, of which [$17,780,000] aggregate principal amount remains outstanding as of September 1, 2007, and any such Senior Debt will be secured under the Senior Indenture on a senior basis to the 2006 Series B Bonds and the 2007 Bonds. The Original Subordinate Indenture also permits the Agency to incur other obligations secured by a pledge of tax increment revenues that is senior to the pledge thereof under the (lriginal Subordinate Indenture. The Agency may issue additional debt secured under the Subordinate Indenture on a parity with the $3,040,000 aggregate principal amount of 2006 Series B Bonds and with the 2007 Bonds and any such additional subordinate debt will be secured under the Subordinate Indenture on a subordinate basis to the 2006 Series A Bonds, the 2002 Bonds and any other Senior Obligations (as defined in the Subordinate Indenture). See "SECURITY FOR THE 2007 B( lNDS - Parity Subordinate Debt." The Agency and the Redevelopment Plan On July 12, 1988, the County of Riverside (the "County") (prior to the incorporation of the City of Temecula (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 ofDivision24( 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 rights, powers, duties and privileges of the Agency. See "THE REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA" herein. The City has no responsibility whatsoever for the repayment of the 2007 Bonds. 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 Temecula Redevelopment Plan No.1 (the "Redevelopment Plan") and transferringjurisdiction 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, (lid Town and industrial and business park areas west of Interstate 15. See "THE REDEVEL< lPMENT PLAN" herein. The total assessed valuation of taxable property in the Project Area for Fiscal Year 2007-08 is approximately $2,055,607,579 greater than the aggregate adjusted assessed valuation in the 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 2007-08. See "RISK FACT< lRS" herein. Purpose of Issuance; Escrow of a Portion of Bond Proceeds Proceeds from the sale of the 2007 Bonds will be used to (i) finance redevelopment activities within or of benefit to the Project Area, including establishing an escrow fund for such purposes, subject to release upon satisfaction of certain conditions described below; (ii) establish a 2007 Reserve Account with respect to the 2007 Bonds, (iii) fund capitalized interest with respect to the portion of Bond proceeds deposited in the Escrow Fund to June 15, 2010, and (iv) provide for the costs of issuing the 2007 Bonds. See "ESTIMATED S( lURCES AND USES (IF FUNDS" herein. The 2007 Bonds The 2007 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 , adopted by the Agency on September 25, 2007 (the "Resolution"), and the Subordinate Indenture. See "THE 2007 BONDS" herein and "APPENDIX A SUMMARY OF CERT AlNPROVISIONS OF THE SUBORDINATE INDENTURE" attached hereto. The 2007 Bonds will be issued in denominations of $5,000 each or integral multiples thereof. Interest on the 2007 Bonds is payable on each June 15 and December 15, commencing on June 15,2008. 2 Interest and principal on the 2007 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 G) which will in turn be responsible for remitting such principal and interest to the Beneficial (lwners (as defined in Appendix G) of the 2007 Bonds. No physical distribution of the 2007 Bonds will be made to the public initially. See "THE 2007 B( lNDS - Book-Entry and DTC" herein. Source of Payment for the 2007 Bonds The 2007 Bonds are special obligations of the Agency and are payable from and secured by a pledge of "Tax Increment Revenues" and amounts in certain funds and accounts held under the Subordinate Indenture. The term Tax Increment Revenues is defined in the Subordinate Indenture as all taxes annually allocated and paid to the Agency with respect to the Project Area pursuant to Article 6 of Chapter (; (commencing with Section 33670) of the Redevelopment Law 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 Housing Fund 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 subordinate to the Agency's obligation to repay the 2007 Bonds), and (c) the Business Inventory Tax Subvention. See "SECURITY FOR THE 2007 BONDS Tax Increment Revenues" and "LIMITATIONS ON T~X 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 (i) the 2002 Bonds, the 2006 Series A Bonds, the Financial Guaranty Agreement, the 2006 Financial Guaranty Agreement,' any (lualified Reserve Account Credit Instrument (as defined in the Senior Indenture), and any Senior Bonds permitted under the Subordinate Indenture (collectively, the "Senior Obligations"); and (ii) the 2006 Series B Bonds, the 2007 Bonds and any loans, bonds, notes, advances or indebtedness payable from Tax Increment Revenues on a parity with the 2006 Series B Bonds and the 2007 Bonds ("Additional Subordinate Debt") (the 2002 Bonds, the 2006 Series B Bonds, the 2007 Bonds, any Senior Debt and any Additional Subordinate Debt, collectively referred to herein as the "Bonds") that may be issued in accordance with the Indentures. See "THE REDEVEL< lPMENT AGENCY (IF THE CITY (IF TEMECULA - (lutstanding Indebtedness ofthe Agency" herein. The 2007 Bonds are not payable from, and are not secured by, any funds of the Agency other than the Tax Increment Revenues, and amounts in certain funds and accounts specifically pledged therefore under the respective Indenture. See "SECURITY F< lR THE 2007 B( lNDS" herein. The Indentures are not cross collateralized, and a default under one of the Indentures does not, in itself, constitute a default under the other Indenture. Parity Senior Debt; Parity Subordinate Debt The Agency may incur parity debt secured under the Senior Indenture on a parity with the Senior Debt and any such parity debt will be secured under the Senior Indenture on a senior basis to the 2007 Bonds. The Agency may issue Additional Subordinate Debt secured under the Subordinate Indenture on a parity with the 2006 Series B Bonds and the 2007 Bonds and any such Additional Subordinate Debt will be secured under the Subordinate Indenture on a subordinate basis to the Senior Debt. The Agency may issue or incur Senior Debt or Additional Subordinate Debt subject to certain specific conditions set forth in the Subordinate Indenture. See "SECURITY FOR THE 2007 BONDS Parity Subordinate Debt." With respect to the 2002 Bonds, the Agency and MEIA In<;urance Corporation ("MBIA") entered into the Financial Guaranty Agreement (the "Financial Guaranty Agreement"), pursuant to which the Agency is required to reimburse MBIA within one year of any deposit, the arnOlmt of such deposit made by MEIA with the Trustee lUlder the 2002 Debt Service Reserve Surety Bond. Such reimbursement is senior to the payments due with respect to the 2007 Bonds and the 2006 Series B Bonds and shall be made only after all required deposits to the Debt Service Flllld established llllder the Senior Indenture have been made. With respect to the 2006 Series A Bonds, the Agency and MBIA entered into the 2006 Financial Guaranty Agreement (the "2006 Financial Guaranty AgreemenC), pursuant to which the Agency is required to reimburse MBIA, within one year of any deposit the amolmt of such deposit made by MBIA with the Tmstee lmder the 2006 Series A Debt Service Reserve Surety Bond. Such reimbursement is senior to the payments due with respect to the 2007 Bonds and 2006 Series B Bonds and shall be made only after all required deposits to the Debt Service Flmd established lmder the Senior Indenture have been made. "Senior Obligation.;;" include the Senior Debt as well as the Financial Guaranty Agreement, the 2006 Financial Guaranty Agreement and any other Qualified Reserve AccOlmt Credit Instnunent as such terms are defined in the Senior Indenture. 3 Bondowners' Risks Prospective investors should review this (Jfficial Statement and the Appendices hereto in their entirety and should consider certain risk factors associated with the purchase of the 2007 Bonds, some of which have been summarized in the section herein entitled "RISK FACT< JRS." Continuing Disclosure The Agency has covenanted, pursuant to a Continuing Disclosure Certificate executed on the date of delivery of the 2007 Bonds, for the benefit of (Jwners (as defined in the Subordinate Indenture) and Beneficial (Jwners of the 2007 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 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 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 "APPENDIXE - F< JRM (JF C< JNTINUING DISCL< JSURE CERTIFICATE." The covenants of the Agency in the Continuing Disclosure Certificate have been made in order to assist the underwriter of the 2007 Bonds in complying with S.E.e. Rule 15c2-12(b)(5) (the "Rule"). The Agency has substantially complied with all of its previous disclosure obligations under the Rule. Investment in the 2007 Bonds involves risks that may not be appropriate for some investors. The scheduled payment of principal of and interest on the 2007 Bonds will be payable from Tax Increment Revenues on a basis subordinate to that of the Senior Debt. See the section of this (Jfficial Statement entitled "RISK FACT< JRS" 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 2007 Bonds. Tax Matters In the opinion of ()uint & Thimmig LLP, San Francisco, California, Bond Counsel, under existing law, and assuming compliance by the Agency with certain covenants in the Subordinate Indenture, interest on the 2007 Bonds is excludable 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 2007 Bonds is exempt from State of California personal income taxes. See "T ~X MATTERS" herein. Professionals Involved in the Offering The proceedings of the Agency in connection with the issuance of the 2007 Bonds are subject to the approval as to their legality of Quint & Thimmig LLP, San Francisco, California, Bond Counsel to the Agency. McFarlin & Anderson LLP, Lake Forest, California, is serving as Disclosure Counsel to the Agency for the 2007 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 Coren & Cone, Diamond Bar, California, is acting as Fiscal Consultant to the Agency. Fieldman, Rolapp & Associates, Irvine, California, is acting as Financial Advisor to the Agency. U.S. Bank National Association, Los Angeles, California, will act as the Trustee under the Subordinate Indenture. 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. 4 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 2007 Bonds. Sources of Funds Par Amount of 2007 Bonds Premium/Net Original Issue Discount Less: Underwriter's Discount $ Total Sources $ Uses of Funds Deposit into 2007 Bonds Reserve Account'!) Deposit into the Bond Fund'2( Deposit into Project Fund Deposit into Escrow Fund Deposits to Costs ofIssuance Fund'3( $ Total Uses $ (1' Equal to the initial Reserve Requirement with respect to the 2007 Bonds. For purposes of the calculation of the Reserve Requirement the principal of and interest on the portion of the proceeds of the 2007 Bonds deposited in the Escrow Flmd is excluded from the calculation ofrnaxirnmn annual debt service on the 2007 Bonds.] To the extent proceeds are released from the Escrow Flllld, the Reserve Requirement shall be recalculated and a portion of the proceeds released from the Escrow Flllld shall be deposited in the 2007 Bonds Reserve ACcOlmt Ie) With respect to the portion of Bond proceeds deposited in the Escrow FlmcL represents capitalized interest through hme 15,2010 Ijl Includes, among other things, the fees and expenses of Bond COlillseL Disclosure COlillseL the Financial Advisor, the Trustee and the cost of printing the Preliminary and final Official Statements. Redevelopment Activities The Agency has determined to use 2007 Bonds proceeds to finance redevelopment activities within or of benefit to the Project Area. The primary activities anticipated to be financed with proceeds of the 2007 Bonds include (i) the acquisition of the East Parking Facilities, consisting of a multi-level public parking structure that will accommodate a minimum of936 vehicles (including 75 parking spaces designated as park and ride spaces) on the southerly end of a parcel located adjacent to the Promenade Mall between Macy's and Edwards Cinemas and (ii) costs ofthe Old Town parking structure and the Old Town infrastructure street improvements. 2007 Bond proceeds may also be used for other authorized redevelopment facilities. Escrow Fund There is established under the Subordinate Indenture a separate fund to be known as the "2007 Escrow Fund," which fund shall be held by the Trustee in trust. (a) Amounts in the Escrow Fund shall be applied as follows: (i) From time to time on any date or dates prior to the transfer of amounts in the Escrow Fund to the Redemption Account under the Subordinate Indenture, the Agency may file with the Trustee a Certificate of the Agency which identifies (A) the amount then proposed to be released from the Escrow Fund, and (B) the Maximum Annual Debt Service on the 2006 Series B Bonds, the Senior Debt and the 2007 Bonds (other than the Maximum Annual Debt Service on the portion, if any, of the 2007 Escrow Term Bonds equal to the amount initially deposited therein and to remain on deposit in the Escrow Fund following such release), which will be in effect following such release. Such Certificate shall conclude that the amount of Tax Increment Revenues for the then current Fiscal Year, as set forth in such Certificate of the Agency (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 the Additional Allowance, shall be at least equal to one hundred ten percent (110%) of Maximum Annual Debt Service on the 2006 Series B Bonds, the Senior Debt and the 2007 Bonds (other than the Maximum Annual Debt Service on the portion, if any, of the 2007 5 Escrow Term Bonds equal to the amount initially deposited therein and to remain on deposit in the Escrow Fund following such release). Promptly following receipt of such Certificate ofthe Agency, the Trustee shall withdraw from the Escrow Fund the amount identified in such Certificate and transfer such amount to the 2007 Reserve Subaccount to the extent necessary to increase the amount on deposit therein to the 2007 Reserve Subaccount to the extent necessary to increase the amount on deposit therein to the Reserve Requirement with respect to the 2007 Bonds in effect following such withdrawal, with any remaining amounts withdrawn from the Escrow Fund to be transferred to the Project Fund. (ii) All earnings on the investment of amounts on deposit in the Escrow Fund shall be deposited by the Trustee in the Interest Account four Business Days prior to each Interest Payment Date (as defined on the cover of the Official Statement). (b) On and after May 1, 2010 (the "Initial Escrow Close Date"), the Trustee shall make no further disbursements from the Escrow Fund pursuant to the Subordinate Indenture, and on June 15, 2010 (the "Initial Escrow Redemption Date") the Trustee shall transfer all amounts on deposit in the Escrow Fund to the Redemption Account, to be applied to the redemption of 2007 Bonds maturing on December 15,2038 with CUSIP@ No. ("2007 Escrow Term Bonds") to the maximum extent possible on the Initial Escrow Redemption Date, as provided in the Subordinate Indenture. Notwithstanding the foregoing, the Initial Escrow Close Date (and any Revised Escrow Close Date established pursuant to this paragraph) and the Initial Escrow Redemption Date (and any Revised Escrow Redemption Date established pursuant to this paragraph) may be extended from time to time upon receipt by the Trustee, not later than one Business Day prior to the Initial Escrow Close Date (or, if extended pursuant to the terms of this paragraph, the then applicable Revised Escrow Close Date), of: (i) a request of the Agency requesting such extension and stating (a) the new date after which amounts in the Escrow Fund will no longer be subject to disbursement pursuant to the Subordinate Indenture (the "Revised Escrow Close Date") which date shall be at least 45 days but not more than 90 days prior to the date such amounts are to be used to redeem 2007 Escrow Term Bonds as described in the following clause (b), and (b) the new date on which 2007 Escrow Term Bonds are to be subject to mandatory redemption from the amounts transferred from the Escrow Fund to the Redemption Account pursuant to the Subordinate Indenture (the "Revised Escrow Redemption Date"), which date shall be an Interest Payment Date; (ii) cash (which cash shall immediately be deposited by the Trustee in the Escrow Fund) in an amount determined in writing by an Independent Redevelopment Consultant, together with expected investment earnings thereon and on the amounts in the Escrow Fund (without regard to any withdrawal from the Escrow Fund pursuant to the Subordinate Indenture) at the rate of return on the permitted investment described in (iii) below, to be sufficient to pay interest on the portion of the 2007 Escrow Term Bonds attributable to the funds then on deposit in the Escrow Fund, from the Initial Escrow Close Date (or, if applicable, the most recently established Revised Escrow Close Date) to the then proposed Revised Escrow Redemption Date, accompanied by such written determination by the Independent Redevelopment Consultant; and (iii) a Permitted Investment or Permitted Investments which provides for the investment of amounts deposited thereunder from the Initial Escrow Close Date (or the most recent Revised Escrow Close Date, if applicable) to the then proposed Revised Escrow Redemption Date, for amounts in the Escrow Fund, and for the amount of cash referred to in the preceding clause (ii) to be deposited in the Escrow Fund, which Permitted Investment or Permitted Investments will provide a fixed rate of return equal to or better than that assumed by the Independent Redevelopment Consultant in its determination pursuant to the preceding clause (ii) above. Notwithstanding the foregoing, in no event shall any Revised Escrow Redemption Date be later than June 15,2011 (the last Interest Payment Date prior to the Interest Payment Date on which principal of the 2007 Escrow Term Bonds first becomes payable under the Subordinate Indenture). The Trustee shall provide the Owners of the 2007 Escrow Term Bonds with a written statement as to any Revised Escrow Redemption Date established under the Subordinate Indenture, promptly following 6 receipt of the request of the Agency and other documents described in clauses (i) through (iii) above, which notice shall set forth the Initial Escrow Redemption Date (or, if applicable, the most recent Revised Escrow Redemption Date), and shall state that such redemption date has been extended to the newly-established Revised Escrow Redemption Date. In addition, on the Initial Escrow Redemption Date (or, if applicable, the most recent Revised Escrow Redemption Date), the Trustee shall invest all amounts on deposit in the Escrow Fund in the Permitted Investment or applicable Permitted Investments described in clause (iii) above. ()n or after any Revised Escrow Close Date, the Trustee shall make no further disbursements from the Escrow Fund pursuant to the Subordinate Indenture, and on the Revised Escrow Redemption Date, the Trustee shall transfer all amounts on deposit in the Escrow Fund to the Redemption Account under the Subordinate Indenture, to be applied to the redemption of2007 Escrow Term Bonds to the maximum extent possible on the Revised Escrow Redemption Date as provided in the Subordinate Indenture. 7 DEBT SERVICE SCHEDULE The following table represents the annual debt service for the 2007 Bonds (including mandatory sinking fund redemptions on their respective December 15 redemption dates, as applicable), assuming that there are no optional redemptions or mandatory redemptions. Non-Escrow Non-Escrow 2()()7 Escrow 2()( 17 Escrow Period Ending Bond Bond Bonds Bonds 2007 Bonds (December 15) Principal Interest Principal Interest1 Debt Service 21)(IR $ $ $ $ $ 21)(19 2010 2011 2012 21113 21114 21115 2016 2017 2018 21119 2()2() 2()21 2022 2023 2024 2(125 2()26 21l2? 2028 2029 2030 21131 21)32 21133 2034 2035 2036 21137 2113R Total $ $ $ $ $ 1 Interest with respect to the portion of 2007 Bond proceeds deposited into the Escrow Fund is capitalized through June 15.2010 8 THE 2007 BONDS General Provisions The 2007 Bonds will be issued and sold in the initial aggregate principal amount of $ The 2007 Bonds will be delivered in registered form, without coupons, in authorized denominations of $5,000 or any integral multiples thereof. Interest on the 2007 Bonds is payable semi-annually on June 15th and December 15th of each year (as defined on the cover ofthe ()fficial Statement, each an "Interest Payment Date," as applicable), commencing June 15,2008, to the registered Owner thereof as of the close of business on the first calendar day of the month in which the Interest Payment Date occurs, whether or not such first calendar day is a Business Day (each a "Record Date," as applicable). Principal of the 2007 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 2007 Bonds is payable by check of the Trustee mailed by first-class mail, postage prepaid, on each Interest Payment Date to the ()wners of the 2007 Bonds at their respective addresses shown on the Registration Books (as defined in the Subordinate Indenture) kept by the Trustee as of the applicable Record Date; provided, however, that payment of interest to each registered ()wner of $1,000,000 or more aggregate principal amount of the 2007 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 2007 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 applicable Indenture. The 2007 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 Bond is authenticated after the close of business on the preceding applicable Record Date and on or before the following Interest Payment Date, in which event such Bond will bear interest from such Interest Payment Date, or (ii) a Bond is authenticated on or before the first applicable Record Date, in which event such Bond will bear interest from the date of issuance of the 2007 Bonds; or (c) if, as of the date of authentication of any Bond, interest thereon is in default with respect to such Bond, in which event such Bond shall bear interest from the date to which interest has previously been paid or made available for payment thereon. 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 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 ()wner not less than 10 days prior thereto. Redem ption The 2007 Bonds are subject to redemption upon the circumstances, on the dates and at the prices as follows: Optional Redemption of the 200ry Bonds.' The 2007 Bonds maturing on or before December 15, _ shall not be subject to optional redemption prior to maturity. The 2007 Bonds maturing on or after December 15, 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 December 15, , from any available source of funds, at a redemption price equal to the principal amount ofthe 2007 Bonds 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 2007 Bonds to be redeemed), as set forth in the following table: 'Preliminary, subject to change. 9 Redemption Date Redemption Premium AlandatorySinkingAccountRedemption of200~ Bonds. The 2007 Bonds maturing on December 15, 20 and December 15,2038 bearing CUSIP@No. (the "Non-Escrowed Term Bonds" and together with the 2007 Escrow Term Bonds, the "2007 Term Bonds"), and the 2007 Escrow Term Bonds shall also be subject to redemption in part by lot on December 15 in each of the years set forth in the following tables, from Sinking Account payments made by the Agency pursuant to the Subordinate 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 Subordinate Indenture, in the aggregate respective principal amounts and on the dates as set forth in the following tables; provided. however, that if some but not all of such 2007 Bonds have been redeemed pursuant to the optional redemption provisions of the Subordinate Indenture, or in the case of the 2007 Escrow Term Bonds pursuant to the 2007 Escrow Fund redemption described below, the total amount of all future Sinking Account payments pursuant to the Subordinate Indenture shall be reduced by the aggregate principal amount of such 2007 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). Term Bonds MaturinQ: on December 15.20 Sinking Account Redemption Date (December 15) 20 20 20 20 (maturity) Principal Amount To Be Redeemed or Purchased $ Term Bonds MaturinQ: on December 15. 2038 BearinQ: CUSIP" No. Sinking Account Redemption Date (December 15) 20 20 20 2038 (maturity) Principal Amount To Be Redeemed or Purchased $ 10 2007 Escrow Term Bonds Maturin!! on December 15. 2038 Bearin!! CUSIP" No. Sinking Account Redemption Date (December 15) 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Principal Amount To Be Redeemed or Purchased $ 2033 2034 2035 2036 2037 2038 (maturity) In lieu of redemption of any 2007 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 anytime for purchase of2007 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 2007 Term 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 such 2007 Term Bonds required to be redeemed pursuant to the Subordinate Indenture on December 15 in such year, upon the presentation of the purchased 2007 Bonds to the Trustee on or prior to November 1 in any year. 200ry Escrow Fund Redemption. The 2007 Escrow Term Bonds shall be subject to redemption in part, by lot, on June 15,2010 (or on any Revised Escrow Redemption Date established pursuant to the Subordinate Indenture), from the amount, if any, transferred from the 2007 Escrow Fund to the Redemption 11 Account pursuant to the Subordinate Indenture, at a redemption price equal to the principal amount of such 2007 Bonds to be redeemed, together with accrued interest thereon to the redemption date, without premium. 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 2007 Bonds designated for redemption at their respective addresses appearing on the Registration Books, and (ii) the Securities Depositories (as defined in the Subordinate Indenture) and to one or more Information Services (as defined in the Subordinate Indenture) 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 2007 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 2007 Bonds to be redeemed, and shall require that such 2007 Bonds be then surrendered at the office of the Trustee for redemption at the redemption price, giving notice also that further interest on such 2007 Bonds will not accrue from and after the redemption date. Notwithstanding the foregoing, in the case of any optional redemption of the 2007 Bonds under the Subordinate Indenture, the notice of redemption shall state that the redemption is conditioned upon receipt by the Trustee of sufficient moneys to redeem the 2007 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 2007 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 2007 Bonds to be optionally redeemed, the Trustee shall send written notice to the (lwners of the 2007 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 2007 Bonds for which notice of optional redemption was given shall remain (lutstanding for all purposes of the Subordinate Indenture. .Manner of Redemption. Whenever provision is made in the Subordinate Indenture for the redemption ofless than all of the 2007 Bonds, unless otherwise provided in the Subordinate Indenture, the Agency in its discretion shall determine the maturities to be redeemed by written notice to the Trustee, and the Trustee shall select the 2007 Bonds within a maturity to be redeemed by lot in any manner which the Trustee, in its sole discretion, shall deem appropriate. Partial Redemption of 200ry Bonds. In the event only a portion of any 2007 Bond is called for redemption, then upon surrender of such 2007 Bond the Agency shall execute and the Trustee shall authenticate and deliver to the (lwner thereof, at the expense ofthe Agency, a new 2007 Bond or 2007 Bonds of the same series and maturity date, of authorized denominations in aggregate principal amount equal to the unredeemed portion of the 2007 Bond to be redeemed. 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 principal of and interest (and premium, if any) on the 2007 Bonds so called for redemption shall have been duly provided, such 2007 Bonds so called shall cease to be entitled to any benefit under the Subordinate 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. Book-Entry and DTC The Depository Trust Company ("DTC"), New York, New York, will act as securities depository for the 2007 Bonds. The 2007 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 Bond certificate will be issued for each maturity of the 2007 Bonds, each in the aggregate principal amount of such maturity, and will be deposited with DTC. See "APPENDIX G-BOOK-ENTRY SYSTEM." So long as Cede & Co. is the registered Owner of the 2007 Bonds, references in this Official Statement to the holders or owners or registered Owners or Owners of the 2007 Bonds shall mean Cede & Co. and shall not mean the Beneficial Owners of the 2007 Bonds. 12 Discontinuance ofDTC Services In the event that (a) DTC determines not to continue to act as securities depository for the 2007 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 one or both series of the 2007 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 applicable series of the 2007 Bonds registered in the name of such successor or substitute securities depository as are not inconsistent with the terms of the Subordinate Indenture. If the Agency fails to identify another qualified securities depository to replace the incumbent securities depository for the applicable series of the 2007 Bonds, then such 2007 Bonds shall no longer be restricted to being registered in the 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 applicable 2007 Bonds shall designate. In the event that the Book-Entry System is discontinued, the following provisions would also apply: (i) the 2007 Bonds will be made available in physical form, (ii) principal of, and redemption premiums if any, on the 2007 Bonds will be payable upon surrender thereof at the trust office of the Trustee identified in the Subordinate Indenture, and (iii) the 2007 Bonds will be transferable and exchangeable as provided in the Subordinate Indenture. SECURITY FOR THE 2007 BONDS Tax Increment Revenues T{[~ 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 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 16 of Article X'VI 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: (I) To t{[~ing 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 (I) 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 (I) 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 I, 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 2007 Bonds under the 13 Subordinate Indenture specifically exclude the taxes so committed, and such amounts will not be available to make payments on the 2007 Bonds. See "LIMIT ATI( lNS (IN T ~X INCREMENT REVENUES - Pass- Through Agreements; Other Contractual Obligations" for a discussion of such agreements and other obligations of the Agency, and "SECURITYF< lR THE 2007B( lNDS - Pledge of Tax Increment Revenues" for the specific exclusions from the taxes pledged by the Agency under the Subordinate Indenture to the repayment of the 2007 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 "LIMIT ATH lNS (IN T ~X INCREMENT REVENUES - Low and Moderate Income Housing" herein. The pledge of Tax Increment Revenues under the Subordinate Indenture 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 Pursuant to 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 Bonds; provided, however, that the pledge ofT{[dncrement Revenues to secure the Subordinate Debt, including the 200ry Bonds, is subordinate to the pledge of and lien on the T{[~ Increment Revenues to repay the Senior Obligations. 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 Article XVI of the State 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 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 2007 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 2007 Bonds), and (c) the Business Inventory Tax Subvention. See "LIMITATIONS ON T~X INCREMENT REVENUES - Pass-Through Agreements; Other Contractual (lbligations" 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 T~X INCREMENT REVENUES - Redevelopment Plan Limitations" herein for certain other constraints on the availability of Tax Increment Revenues to pay debt service on the 2007 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 the Special Fund created under either of the Indentures with respect to any Bond Year (under the Senior Indenture) or Tax Increment Calculation Year (under the Subordinate Indenture), an amount of Tax Increment Revenues which, together with other available amounts in the respective Special Fund, exceeds the amounts required with respect to such Bond Year or Tax Increment Calculation Year, as applicable, 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 Bond Year or Tax Increment Calculation Year, as applicable, pursuant to each respective Indenture, all additional Tax Increment Revenues received with respect to such Bond Year or Tax Increment Calculation Year, as applicable, shall be released from the pledge and lien of the respective Indenture and may be used for any lawful purpose of the Agency. The Agency has no independent power to levy and collect property t{[~es, and any property t{[~ limitation, legislative measure, voter initiative or provision of additional sources of income to taxing agencies having the effect of reducing the property t{[~ rate or collections, could reduce the amount ofT{[~ Increment Revenues that would otherwise be available to pay the principal of, and interest on, the 200ry Bonds. Likewise, broadened property t{[~ exemptions could have a similar effect. See "RISK FACTORS" herein. 14 Limited Obligations THE PRINCIPAL (IF AND INTEREST AND PREMIUM IF ANY, (IN THE 2007 B(lNDS ARE PAYABLE S(lLELY FR(lM T~X INCREMENT REVENUES AND FR(lM AM(lUNTS IN CERTAIN FUNDS AND ACCOUNTS PLEDGED THEREFORE UNDER AND PURSUANT TO THE SUB( lRDINATE INDENTURE. THE 2007 B( lNDS ARE N( IT ADEBT (IF THE CITY, (lR THE STATE OR ANY POLITICAL SUBDIVISION OF THE STATE (OTHER THAN THE AGENCY TO THE LIMITED EXTENT SET F< lRTH IN THE SUB( lRDINATE INDENTURE), AND NEITHER THE CITY NOR THE STATE OR ANY OF ITS POLITICAL SUBDIVISIONS (OTHER THAN THE AGENCY) IS LIABLE THEREFOR. NEITHER THE MEMBERS OF THE AGENCY NOR ANY PERSON RESP( lNSIBLE F< lR THE EXECUTI< IN (IF THE 2007 B( lNDS IS LIABLE PERS( lNALL Y F< lR THE 2007 B( lNDS BY REAS( IN (IF THE ISSUANCE THERE( IF. 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 Bond Year (August 2 in any year to the next succeeding August I) to the Special Fund created thereunder promptly upon receipt thereof by the Agency; provided, that the Agency will not be obligated to deposit in such Special Fund with respect to any Bond Year an amount of Tax Increment Revenues which, together with other available amounts then in such Special Fund, exceeds the amounts required to be transferred under the Senior Indenture to the Trustee for deposit in the applicable Interest Account, Principal Account, Sinking Account, Reserve Account and the Redemption Account established under the Senior Indenture with respect to any Bond Year as described below. The Agency is required under the Subordinate 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 Senior Obligations, to the Special Fund created thereunder promptly upon receipt thereof by the Agency; provided, that the Agency will not be obligated to deposit in such Special Fund with respect to any Tax Increment Calculation Year an amount of Tax Increment Revenues which, together with other available amounts then in such Special Fund, exceeds the amounts required under the Subordinate Indenture to be transferred to the Trustee for deposit in the applicable Interest Account, Principal Account, Sinking Account, Reserve Account and the Redemption Account established under the Subordinate Indenture with respect to any Tax Increment Calculation Year as described below. After the amount on deposit in the Special Fund established under the Subordinate Indenture 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 established under the Subordinate Indenture with respect to such Tax Increment Calculation Year as described below, all additional Tax Increment Revenues received with respect to a Tax Increment Calculation Year will be released from the pledge and lien of the Indentures and maybe 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 2002 Bonds and 2006 Series A Bonds and the payment in full of all other amounts payable under the Indentures and under any instrument, any resolution, indenture of trust, trust agreement or other instrument authorizing the issuance and! or execution and delivery of any Senior Debt (collectively, a "Senior Debt Instrument"), and under any 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 Debt Instrument"), 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 Senior Debt Instrument or Additional Subordinate Debt Instrument, and such moneys will be used and applied as set forth in the Indentures and in any Senior Debt Instrument and any Additional Subordinate Debt Instrument. 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 Fundfor the 200ry Bonds will not be made, and therefore the deposits to theAccounts relating to the 200ry Bonds will not be made, until after deposit to the Special Fund created under the Senior Indenture for the Senior Debt sufftcient to satisfi' all of the deposits to the Accounts for the Senior Debt have been made for the applicable Bond Year and after 15 satisfllction of any amounts due under any other Senior Debt, in the applicable T{[~ Increment Calculation Year: 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 applicable (lutstanding 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) . Princioal 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. SinkinQ: Account. (In or before each date on which any applicable (lutstanding Term Bonds are subjectto 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) the applicable Term Bonds. Reserve Account. With respect to the Senior Debt, a separate Subaccount within the Reserve Account created under the Senior Indenture shall be established for each such series of Bonds. In the event that the amount on deposit in the applicable Subaccount ofthe 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 Special Fund created under the Senior Indenture an amount sufficient to maintain the applicable Reserve Requirement on deposit in the applicable Subaccount of the Reserve Account. Amounts in the applicable Subaccount of the 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 related 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 related Bonds then (lutstanding. So long as the Agency is not in default under the Senior Indenture, any amount in the applicable Subaccount ofthe Reserve Account in excess ofthe applicable Reserve Requirement preceding each applicable Interest Payment Date will be withdrawn from the applicable Subaccount of the Reserve Account by the Trustee and deposited in the applicable Interest Account on or before each applicable Interest Payment Date. Amounts in a Subaccount of the Reserve Account may only be used to pay debt service on the related series of the Bonds. With respect to the 2007 Bonds, separate Subaccount of the Reserve Account has been created under the Subordinate Indenture. In the event that the amount on deposit in the applicable Subaccount of the 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 Special Fund created under the Subordinate Indenture an amount sufficient to maintain the applicable Reserve Requirement on deposit in the applicable Subaccount of the Reserve Account. Amounts in the applicable Subaccount of the 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 16 the related 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 related Bonds then (lutstanding. So long as the Agency is not in default under the Subordinate Indenture, any amount in the applicable Subaccount of the Reserve Account in excess of the applicable Reserve Requirement preceding each app licab Ie Interest Payment Date will be withdrawn from the 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 (lualified Reserve Account Credit Instrument, in lieu of or in substitution for or in place of all or any portion of the moneys then constituting a Reserve Requirement, under the terms of which the Trustee is unconditionally entitled to withdraw amounts when required for the purposes of the applicable Indenture. Upon deposit by the Agency with the Trustee of any such (lualified 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 (lualified Reserve Account Credit Instrument. "(lualified Reserve Account Credit Instrument" is defined in the Indentures to mean (i) with respect to the 2006 Series A Bonds, 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) otherwise, with respect to any series of Bonds, 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 the applicable Indenture; 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 applicable Indenture. The Reserve Requirement with respect to the 200ry Bonds will initial!.v be satisfied with deposit of a portion of the proceeds of the 200ry Bonds to the Subaccount of the Reserve Account created under the Subordinate Indenture. See" - Reserve Account" below. Redemotion Account. (In or before each date on which 2007 Bonds are to be redeemed pursuant to optional redemption, the Agency will withdraw from the Special Fund established under the Subordinate Indenture 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 2007 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 2007 Bonds to be redeemed pursuant to optional redemption on the respective dates set for such redemption. Reserve Account Pursuant to the Subordinate Indenture, separate Reserve Sub accounts within the Reserve Account have been established and are held by the Trustee in trust for the benefit of the Agency and the registered Owners of the 2006 Series B Bonds and the 2007 Bonds, respectively, and will be established for any Additional Subordinate Debt. The amount on deposit in each Reserve Subaccount is required to be maintained at an amount equal to the applicable Reserve Requirement. Pursuant to the Senior Indenture, Reserve Sub accounts within the Reserve Account have been established and are held by the Trustee in trust for the benefit of the Agency and the registered owners of the 2002 Bonds and the 2006 Series A Bonds, respectively. The term "Reserve Requirement" with respect to the 2007 Bonds means, as of the date of any calculation by the Agency, the least of (a) Maximum Annual Debt Service with respect to the 2007 Bonds, or (b) one hundred twenty-five percent (125%) of average Annual Debt Service with respect to the 2007 17 Bonds, or (c) ten percent (10%) of the initial principal amount of the 2007 Bonds [, provided, however, that for purposes of calculation of the Maximum Annual Debt Service on the 2007 Bonds, the principal of and interest on the portion of the proceeds of the 2007 Bonds deposited in the Escrow Fund shall be excluded from such calculation]. To the extent proceeds are released from the Escrow Fund, the Reserve Requirement shall be recalculated and a portion of the proceeds released from the Escrow Fund shall be deposited in the 2007 Bonds Reserve Account. See "APPENDLX A - SUMMARY (IF CERT AlN PR( NISI< lNS (IF THE SUBORDINATE INDENTURE" attached hereto for the definitions of capitalized terms used in the preceding sentence. So long as the Reserve Requirement shall at any time be maintained in the Reserve Account (or subaccount therein) in the form of a combination of cash and a (lualified 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 (or subaccount therein) before the Trustee shall draw any moneys under the (lualified Reserve Account Credit Instrument for such purpose. In the event that the Trustee shall at any time draw funds under the (lualified Reserve Account Credit Instrument to make any payment then required to be made from the Reserve Account (or subaccount therein), 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 ofthe Subordinate Indenture, shall be used to reinstate the (lualified Reserve Account Credit Instrument. If there is more than one (lualified Reserve Account Credit Instrument held in the Reserve Account (or subaccount therein), any draw or reinstatement shall be made upon them pro rata. County Payment of Tax Increment The County currently pays 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 currently impact the Agency's tax increment revenues. The Riverside County Auditor- Controller remits tax increment revenues to the Agency in periodic payments each fiscal year. However, the foregoing payment description is an administrative practice of the County that could be subject to 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 2007 Bonds from the risk of delinquencies in ad valorem taxes. Parity Subordinate Debt Pursuant to the Subordinate Indenture, in addition to the 2006 Series B Bonds and the 2007 Bonds, the Agency may issue or incur Additional Subordinate Debt payable from Tax Increment Revenues on a parity with the 2006 Series B Bonds and the 2007 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 Subordinate Indenture, shall have occurred and be continuing, and the Agency shall otherwise be in compliance with all covenants set forth in the Subordinate 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 2006 Series B Bonds, the 2007 Bonds, the Senior Debt and 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 (as defined in the Indentures). 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 18 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 2007 Bonds, the Senior Debt 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 2007 Bonds, the Senior Debt 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 2007 Bonds, Senior Debt or Additional Subordinate Debt the term of which extends for the term of such 2007 Bonds, Senior Debt 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 2007 Bonds, Senior Debt or Additional Subordinate Debt, or (B) the 2007 Bonds, Senior Debt or Additional Subordinate Debt shall be assumed to bear interest at a fixed rate equal to the average of the daily interest rate on such 2007 Bonds, Senior Debt 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 2007 Bonds, Senior Debt or Additional Subordinate Debt have not been outstanding for the entire three-year period, for the portion of such time period such 2007 Bonds, Senior Debt 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 (as defined in the Indentures)). (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 any June 15 or December 15 and provided that there shall be no requirement that such Additional Subordinate Debt pay interest on a current basis and 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 (lualified Reserve Account Credit Instrument) shall be deposited in the Reserve Account, or in a separate subaccount therein established for the benefit of the Additional Subordinate Debt, in an amount equal to the initial Reserve Requirement - Additional Subordinate Debt applicable to such 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, is 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; (b) the amount of Tax Increment Revenues which, as shown in the report of an Independent Redevelopment Consultant, is 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 Senior 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 19 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 succeeding Fiscal Year is estimated to exceed the assessed valuation oftaxable 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 Subordinate 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, is estimated to be receivable by the Agency in the next succeeding Fiscal Year as a result of increases in the assessed valuation oftaxable 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 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 Subordinate Indenture, the Agency has covenanted not to issue any Senior 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 respect to Senior Debt as if such Senior Debt was to be Additional Subordinate Debt under the Subordinate Indenture; (b) the Senior 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 2007 Bonds including the principal amount thereof, the maturity date thereof and the date of incurrence thereof. With respect to the 2002 Bonds and the 2006 Series A 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 below under Senior Debt in subsections (a), (c) and (e) below 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 2006 Series B Bonds and the 2007 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 2007 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 Senior 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 (lutstanding is not greater than the debt service due with respect to such Tax Increment Calculation Year on the portion of the Senior Debt or Subordinate Additional Debt refunded with the proceeds of such Refunding Debt. Additional Parity Senior Debt Pursuant to the Senior Indenture, in addition to the Senior Debt currently outstanding, the Agency may issue or incur parity debt payable from Tax Increment Revenues on a parity, with such principal amount as will be determined by the Agency. The Agency may issue or incur any such parity Senior 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. 20 (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 2006 Series B Bonds and the 2007 Bonds and any Additional Subordinate Debt) and such new Senior Debt. (c) Subject to paragraph (d) below, the issuance of such Senior 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 Senior Debt in the event and to the extent that either (i) the sum of the aggregate amount of debt service on all outstanding obligations ofthe Agency payable from Tax Increment Revenues, including such Senior 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 Senior 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 any 2007 Bonds and Senior 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 2006 Series B Bonds, the 2007 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 arrangement with respect to such Bonds (other than the Senior Debt or any Additional Subordinate Debt) the term of which extends for the term of such Bonds (other than the Senior Debt 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 2006 Series B Bonds, the 2007 Bonds and any Additional Subordinate Debt), or (B) the Bonds (other than the 2007 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 2007 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 2006 Series B Bonds, the 2007 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 2007 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). (e) The related Senior Debt Instrument shall provide that: (i) Interest on such Senior Debt shall be payable on February 1 and August 1 in each year in which interest is payable on such Senior Debt except the first twelve-month period, during which interest may be payable on February 1 or August 1 and provided that (A) there shall be no requirement that such Senior Debt pay interest on a current basis and (B) the interest rate on all Senior Debt shall be fixed for the term of the Senior Debt; (ii) The principal of such Senior Debt shall be payable on August 1 in any year in which principal is payable on such Senior Debt; and (iii) Money (and/or a (lualified Reserve Account Credit Instrument) shall be deposited in a subaccount of the Reserve Account created for such Senior Debt in an amount equal to the applicable Reserve Requirement for such Senior Debt. (f) The Agency shall deliver to the Trustee a Certificate of the Agency certifying that the conditions precedent to the issuance of such Senior Debt set forth in subsections (a), (b), (c) and (e) above have been satisfied. See "APPENDLX A - SUMMARY OF CERTAIN PROVISIONS OF THE SUBORDINATE INDENTURE - (lther Covenants of the Agency - Limitation on Superior Debt." 21 RISK FACTORS The following information should be considered by prospective investors in evaluating the 200ry 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 200ry Bonds. ]n addition, the order in which the following information is presented is not intended to reflect the relative importance of any such risks. 2007 Bonds Are Limited Obligations and Not General Obligations The 2007 Bonds and the interest thereon are limited obligations of the Agency and do not constitute a general obligation of the Agency. See "SECURITY F< lR THE 2007 B( lNDS" herein. No (lwner of the 2007 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 2007 Bonds. Tax Increment Revenues The Tax Increment Revenues allocated to the Agency, which constitute the primary security for the 2007 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, a reduction 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), and have 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 2007 Bonds. As described in greater detail under "LIMITATIONS ON T~X 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 (20'0) 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 2007 Bonds could reduce Tax Increment Revenues securing the 2007 Bonds. See "LIMITATIONS ON T~X INCREMENT REVENUES - Property Tax Rate Limitations - Article XIII~" 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 REDEVEL< lPMENT PLAN - Appeals of Assessed Values" herein. In addition to the other existing limitations on Tax Increment Revenues described below under "LIMIT ATH lNS (lNT ~XINCREMENTREVENUES,"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 2007 Bonds. The Agency has no power to levy and collect property taxes. Although the County currently administers its property tax collection/disbursement system such that redevelopment agencies get 100% of what is due as of the beginning of the fiscal year, 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 2007 Bonds. Tax Increment Revenues 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 22 collections. See "LIMITATIONS ON T~X 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 extent the 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 2007 Bonds would be reduced. See "C( lVERAGE 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 "C( lVERAGE 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 million for Fiscal Year 2002-03, $135 million for Fiscal Year 2003-04, $250 million for Fiscal Year 2004-05 and $250 million for Fiscal Year 2005-06. The amount of payments by the Agency was $253,618 with respect to Fiscal Year 2002-03, $445,334 with respect to Fiscal Year 2003-04, $769,553 with respect to Fiscal Year 2004-05 and $745,277 with respect to Fiscal Year 2005-06. There was no shift required for Fiscal Year 2006-07 or Fiscal Year 2007-08. 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 Proj ect 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 16.34% of the incremental assessed value of the Project Area, and the ten largest property taxpayers account for approximately 43.54% 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 September I, 2007, the County's records indicate that property taxes for the ten largest assessees are current through the second instalhnent of Fiscal Year 2006-07. Four of the ten largest property taxpayers filed assessment appeals that are currently pending. See "THE REDEVEL< lPMENT PLAN - Assessed Valuation" and "APPENDIX B - 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 oflocal 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 offuture 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 23 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 ofland 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. County Payment of Tax Increment Revenues Pursuant to 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 (lwners of the 2007 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 F< lR THE 2007 B( lNDS - County Payment of Tax Increment." 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. No Acceleration on Default In the event of default under the Subordinate Indenture, as a practical matter, Bond (lwners will be limited to obtaining the moneys in the Reserve Account and enforcing the obligation of the Agency to repay the 2007 Bonds on an annual basis to the extent of the Tax Increment Revenues. No real or personal property in the Project Area is pledged to secure the 2007 Bonds and it is not anticipated that the Agency will have available moneys sufficient to redeem all of the 2007 Bonds upon the occurrence of 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 2007 Bonds, the Agency has covenanted in the Subordinate Indenture to comply with the requirements of the Internal Revenue Code of 1986, as amended, applicable to the 2007 Bonds. The interest on a series of the 2007 Bonds could become includable in gross income for purposes of federal income taxation retroactive to the date of issuance of the respective 2007 Bonds, as a result of acts or omissions of the Agency in violation of covenants in the Subordinate Indenture. Should such an event oftaxability occur, the 2007 Bonds may not be subject to acceleration or redemption andno increase in interest rates will occur, and 24 the 2007 Bonds will remain (lutstanding until maturity or until redeemed under one of the redemption provisions contained in the Subordinate Indenture. See "T ~X MATTERS" herein. Future legislative proposals, if enacted into law, clarification of the Code or court decisions may cause interest on the 2007 Bonds to be subject, directly or indirectly, to federal income taxation or to be subject to or exempted from State income taxation, or otherwise prevent Beneficial (lwners from realizing the full current benefit ofthe tax status of such interest. As one example, on May 21,2007, the United States Supreme Court agreed to hear an appeal from a KentuckY' state court which ruled that the United States Constitution prohibited the state from providing a tax exemption for interest on bonds issued by the state and its political subdivisions but allowed taxing interest on obligations issued by other states and their political subdivisions. The introduction or enactment of any such future legislative proposals, clarification of the Code or court decisions may also affect the market price for, or marketability of, the 2007 Bonds. Prospective purchasers of the 2007 Bonds should consult their own tax advisors regarding any pending or proposed federal or state tax legislation, regulations or litigation, as to which Bond Counsel expresses no opmlOn. IRS Audit of Tax-Exempt Bond Issues The Internal Revenue Service has initiated an expanded program for the auditing oftax-exempt bond issues, including both random and targeted audits. It is possible that the 2007 Bonds will be selected for audit by the Internal Revenue Service. It is also possible that the market value of the 2007 Bonds might be affected as a result of such an audit of the 2007 Bonds (or by an audit of similar bonds). 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 2007 Bonds, which are secured by such Tax Increment Revenues. To estimate the total Tax Increment Revenues available to pay debt service on the 2007 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 ANAL YSIS"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 "0 lVERAGE ANALYSIS" herein. SPECIAL RISK CONSIDERATIONS SPECIFIC TO THE 2007 BONDS In addition to the risks described under the heading "RISK FACT< lRS," there are several additional risks that are relevant to an investment in the 2007 Bonds. The 200ry Bonds are subordinate in right of payment to the Senior Debt. The 2007 Bonds are not rated and are not insured. For this reason, investments in the 2007 Bonds involve a higher degree of risk and are not appropriate for all investors. Subordination of2007 Bonds; Issuance of Additional Senior Debt The 2007 Bonds are subordinate to the Senior Debt in right of payment. Tax Increment Revenues will be available to pay obligations on the 2007 Bonds only after all payments and deposits in respect of the Senior Debt have been made as set forth herein and in the Subordinate Indenture. 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 2007 Bonds then outstanding. Limited Secondary Market As stated herein, investment in the 2007 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 2007 Bonds should consider such investment. There can be no guarantee that there will be a secondary market for purchase or sale of the 2007 Bonds or, if a secondary market exists, that the 25 2007 Bonds can or could be sold for any particular price. From time to time there may be no market for the 2007 Bonds, depending upon prevailing market conditions, the [mancial 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 2007 Bonds The 2007 Bonds are not rated by any rating agency, and the Agency does not presently intend to seek any rating of the 2007 Bonds nor does the Agency anticipate that the 2007 Bonds would qualify for an investment grade rating due to the structure and size of the 2007 Bonds. LIMITATIONS ON TA.X INCREMENT REVENUES Property Tax Collection Procedure In California, property which is subject to ad valorem 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 ten percent ( 10%) 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 oflaw and declaration of the tax collector. Such property may thereafter be redeemed by payment of the delinquent taxes and a delinquency penalty, plus a redemption penalty of one-and-a-half percent (1-1/2%) 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 instalhnents 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. 26 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 2007 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 and 60, which further amend Article XIIIA. Proposition 58 amends Article XIIIA to provide that the terms "purchased" and "change of ownership,"for purposes 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. 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 XllL4. ()n September 22, 1978, the California Supreme Court upheld the amendment over challenges on several state and federal constitutional grounds (Amador Valley Joint r In ion 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. 27 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 ()fficial 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 ()n 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 oftaxes, 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 behalf of the 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 Fourth District Court of Appeals in two decisions: Bell RedevelopmentAgency v. FVoose!.vand Brown v. Redevelopment Agency of the City of Santa Ana, which cases were not accepted for review by the California Supreme Court. Pass- Through Agreements; Other Contractual Obligations Pass- 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% of their shares of general levy tax increment revenue. All non-school district Pass-Through Agreements called for the taxing entities to receive 100% 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 2007 Bonds. The agreements are summarized in the table below: 28 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 Superintendent of Schools I % Share 18.12% 2.18% 4.70% 0.390'0 9.84% 1.71% 5.67% 30.7% 3.540'0 10.22% Pass-Through Share 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 29.62% 29.62% 29.62% 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 22, 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%, the County Structural Fire Department share is 4.70% and the County Library Department share is 2.18%. 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 improvement was provided from sources other than Tax Increment Revenues and other than proceeds of the 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 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 2007 Bonds. To the extent that the Tax Increment Revenues remaining after satisfaction of the Agency's obligations under thePass- ThroughAgreements described above are not sulf/cientto pay the scheduled debt service on the 200ry Bonds, there could be a deflmlt in the payment of debt service on the 200ry Bonds. Owner Participation Agreements. The Agency has entered into three Owner Participation Agreements two of which 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 April 23, 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 150 new 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 occupancy for the Phase I improvements, it will receive a certificate of occupancy for at least 90,000 additional square feet of building area. Alternatively, the agreement specifies that the Participant may increase the size ofthe Phase I improvements to at least 135,000 and the requirement of a second phase of improvements will be deemed satisfied. The 29 Participant has been issued permits to build an office building totaling more than 383,000 square feet and to build the parking structure. Upon completion of the prerequisites set forth in the agreement, the Agency agrees to remit to the Participant 50% 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 from Phases I and II less 20% for housing set-aside and amounts required by existing tax sharing agreements. The office and manufacturing buildings of Phase I are presently under construction as is a three-story parking garage. Based on the estimated assessed value of the structures under construction and assuming that the Participant will meet the requirements of the agreement, the Fiscal Consultant has estimated the amount of tax revenue that will be paid to the Participant. 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 2007 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. The third agreement among the Agency, Temecula Towne Center Associates, L.P. ("Temecula Towne Center Associates"), a California limited partuership, and F.C. Temecula, Inc. ("F.C. Temecula, Inc."), a California corporation, was dated as of July 24, 2007. No payments of Tax Increment Revenues will be made to the Owner Participant. Under the terms of the Agreement, F.C. Temecula, Inc. agrees to construct the East Parking Facility with a minimum of 936 parking spaces. The East Parking Facility will be constructed adjacent to the Edwards Cinemas and available to the public patronizing nearby businesses. After the 30 year term of a ground lease between the Agency and F.C. Temecula, Inc., the ownership of the East Parking Facility shall revert to F.C. Temecula, Inc. The cost of construction and the value of the East Parking Facility is estimated to be at least $22 million. The Agency agrees to purchase the East Parking Facility for $11 million and anticipates paying such amount with a portion ofthe proceeds ofthe 2007 Bonds. $7 million shall be payable to F.C. Temecula, Inc. or its designee on the date when certain conditions are satisfied, including F.C. Temecula, Inc. providing evidence that it has expended at least $11 million toward construction of the East Parking Facility and the permanent certificate of occupancy for the Mall Expansion is issued by the City; provided funds will only be due to F.C. Temecula, Inc. to the extent such amount is available to be released from the Escrow Fund. $4 million of the purchase price shall not be available for release until approval of the enhancement plan for the Ring Road at which time $2 million shall become available for release upon satisfaction of the other terms for payment and the balance of $2 million shall become available for release upon satisfactory completion of the Ring Road improvements. (Jther conditions relating to the release of funds from the Escrow Fund are set forth in the section captions "ESTIMATED SOURCES AND USES OF FUNDS -Escrow Fund." The release of funds to F.C. Temecula, Inc. could occur at a time different than the time at which moneys are released from the Escrow Fund. In addition, as a part of this agreement, Temecula Towne Center Associates agrees to complete certain road improvements benefitting the Mall and surrounding properties. Temecula Towne Center Associates will manage the East Parking Facility under a parking management agreement and will assume all responsibilities for maintenance, insurance and liability. Exclusion of Tax Increment Revenues for General Obligation 2007 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 XIIID 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 2007 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% 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% 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% 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% 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 I, 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. 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 I - 1988" by Ordinance No. 658. On December I, 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 oft lrdinance No. 91-08 pursuantto the Redevelopment Law. The five members ofthe 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 are subject to change each year. The members of the governing body of the Agency are as follows: Maryann Edwards, Chairperson Michael S. Naggar, Vice Chairperson Jeff Comerchero, Board Member Ron Roberts, Board Member Charles W. Washington, 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 Council/Manager form 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, but not limited to, the right of eminent domain, the right to issue bonds for authorized purposes and to expend their proceeds, and the right to acquire, sell, rehabilitate, develop, administer or lease property. The Agency may demolish buildings, clear land and cause to be constructed certain improvements, including streets, sidewalks, and utilities. 32 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 ofCalifomia for 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 Agencyrecords, the Agency has received approximately $143,358,888 of Tax Increment Revenues from its inception through 2006-07. The amount of revenue received by the Agency that is applicable to the 1991 Settlement Agreement limitation is approximately $15,749,283. Based on the projections included in the Fiscal Consultant Report and taking into account the interest costs of the Senior (lbligations and the projected interest costs of the 2006 Series B Bonds and the 2007 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 that used in the projection, however, the tax increment limit will be exceeded earlier. 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 9 years had been 13.340'0. If the Project Area's assessed value continues to grow at this same rate, the tax increment limit will be reached in Fiscal Year 2021-22. If the assessed value grows by an average annual rate of five percent, the tax increment limit will be reached by Fiscal Year 2030-31. The Agency has covenanted to 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 (lbligations (as defined in the Subordinate Indenture) and for the 2006 Series B Bonds and the 2007 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 (lbligations, will equal one hundred ten percent (110%) or less of the then unpaid principal of the 2006 Series B Bonds and the 2007 Bonds and any Parity Subordinate 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 2006 Series B Bonds, the 2007 Bonds and/or any Additional Subordinate Debt. If Senior Debt or Additional Subordinate Debt is issued, amounts relating to interest on such Senior Debt or Additional Subordinate Debt and amounts relating to housing set-aside portion are not included in the 1991 Settlement Agreement limitation. See "THE REDEVEL< lPMENT AGENCY (IF THE CITY (IF TEMECULA - Agency Powers." Outstanding Indebtedness of the Agency Certification of A"encv 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 ofthe proper disposition ofthe matter. The issue in any such action must involve only the amount ofthe 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 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. 33 (lutstandinQ: Indebtedness. 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 I 50-unit multi-family housing rental apartment development located in the City. As of October 1,2007, $1,457,500 of the Multifamily Housing Revenue Bonds will remain 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, FA. 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 October I, 2007, the outstanding loan balance will be $5,260,920.07. The loan is not a general obligation ofthe 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. (lbliQ:ation to the Citv. 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 October 1,2007, the outstanding amount of the note will be $1,821,358.19. Pass-ThrouQ:h A!ITeements and Owner Particioation A~eements. See "LIMITATIONS ON TA.X INCREMENT REVENUES - Pass-Through Agreements; Other Contractual Obligations" herein for a description of the County Agreement and ( lther 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 2007 Bonds. Investment of Agency Funds The Agency may 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 TEMECULA REDEVELOPMENT AGENCY COMPONENT UNIT FINANCIAL STATEMENTS FOR FISCAL YEAR ENDING JUNE 30, 2006 Note 2." Controls, Land Use and Building Restrictions All real property in the Project Area 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 protect the public health, safety or welfare and to assure compliance with the objectives of the Redevelopment Plan. 34 [INSERT ('( lL( lR MAP (IF THE PRe lJE(,T AREA HERE] 35 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 Temecula Redevelopment Plan No. I (defined above as the "Redevelopment Plan") and transferring jurisdiction over the Redevelopment Plan to the Agency. This transfer was effective July I, 1991. The Temecula Redevelopment Project No. I, 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, (lid Town and industrial and business park areas west of the freeway. The Redevelopment Plan for the Project Area was adopted prior to January I, 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 20 years from the adoption of the Redevelopment Plan or January I, 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 20 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 Housing Set-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 ofland primarily located west ofInterstate 15 and partially straddling Interstate 15 along Winchester and Ynez Roads. The Project Area includes the Old Town area of the City along Front Street. Proceeds of the 2007 Bonds Proceeds from the sale of the 2007 Bonds will be used to (i) finance redevelopment activities within or of benefit to the Project Area, including establishing an escrow fund for such purposes, subject to release 36 upon satisfaction of certain conditions specified herein; (ii) to establish a Reserve Subaccount within the Reserve Account under the Subordinate Indenture in satisfaction of the Reserve Requirement for the 2007 Bonds and (iii) provide for the costs of issuing the 2007 Bonds. See "ESTIMATED SOURCES AND USES (IF 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 ofland use in the Project Area by the number of parcels and by assessed value for Fiscal Year 2007-08. See "APPENDIX B - FISCAL CONSULTANT'S REPORT." TABLE 1 TEMECULA REDEVELOPMENT PROJECT NO.1 LAND USECl ' FISCAL YEAR 2007-08 Category Residential Commercial Industrial Recreational Institutional Government Exempt Vacant Land Possessory Interest Unsecureu Totals: No. Parcels 150 3R5 239 2 Assessed Value") " of Total 7 3 163 124 7121 L5R3\21 L073 $52,91 U22 9611,614,3113 5211,973,11113 LRn,1I35 25,180,587 357,944 o 711,54R,R34 7,372,1122 415,771.729 $2,055,607,579 2.570/0 46.73'" 25.340'0 () ()90'o 1.220/0 0020/0 0000/0 343'" ().360'o 2().230'o 100000/0 ,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 reflect the number of property tax bills that are associated with these categories and not the number of parcels to which these bills are connected. \31 The lien uate values reporteu by the Amlitor -Controller uo not incluue tax roll adjustments that have occurreu after the lien date. Source: Fiscal Consultant's Report. Development in the Project Area The Redevelopment Plan provides for redevelopment within the Project Area. The Agency has identified a number of projects that are currently under construction or have been recently completed and are not yet reflected on the tax rolls. In addition, the Agency has identified several development projects that are expected to begin construction within 2007. It is estimated that these projects will produce approximately $45.4 million if new assessed value for Fiscal Year 2008-09, $72.3 million of new assessed value for Fiscal Year 2009-10 and $78.5 million of new assessed value for Fiscal Year 2010-11. These new developments include hotels, office, retail and commercial buildings in addition to the development and expansion of the Advanced Cardiovascular Systems campus mentioned above. For a list of these new developments and the estimated timing of their completion, see Table 5 of "APPENDLX B FISCAL CONSULTANT'S REPORT." In addition to the development listed above, there have been 10 transfers of ownership that have occurred after the January I, 2007, lien date for the current fiscal year. These transfers have resulted in an increase in value of $13,026,000 on the ten properties transferred.' It is estimated that this increase in value will be reflected on the tax roll for Fiscal Year 2008-09. A summary of the new developments and transfers of ownership are shown on Table 5 of the Fiscal Consultant's Report. See "APPENDIX B FISC AL CONSULTANT'S REPORT." 37 Assessed Valuation The Project Area's aggregate base year assessed adjusted valuation is $365,093,279. The following table shows the actual assessed values for Fiscal Years 2003-04 to 2007-08 based upon the County Auditor/Controller's equalized rolls and incremental values of property within the Project Area. TABLE 2 TEMEClTLA REDEVELOPMENT PROJECT NO.1 HISTORICAL V ALlTES Base Year Fiscal Year Secureif11 1987-88 2003-04 2004-05 2005-06 2006-07 2007-08 Land $167,283,021 $350,202,514 $370,266,437 $ 392,162253 $ 426,934,738 $482,270,750 Improvements 184,324,369 853,885,242 915,533,565 1,011,701,868 1,068,599,164 U37,276,308 Personal Property 11,212,042 116,124,997 116,851,303 86,281,976 77,283,761 34,708,538 Exemptions (235.673 ) rl 1.424.324) rl 0.113.833) (9 398 918) rl)956277) rl4,419.7461 Total Secured $362,583,759 W08.788,422 $U92,537,47~ $1,480,747,1 79 $1,560,861,386 $1,639,835,850 Unsecured Land $ 2,211 $ 396,014 $ 350,1 14 $ 239,344 $ 211,036 $166,748 Improvements 324,497 90,251,575 100,100,389 87,929,361 95,845,756 213,766,372 Personal Property 2,225,879 109,944,1 90 125,589,549 126,621,907 133,245,303 201,959,455 Exemptions (43.067) (38.384) (35.108) (82,415) rl5L2111 ]120.8461 Total Unsecured $2,509,520 $200,553,395 $226,004.944 $214,708,197 ~229J50,884 $415,771,729 Grand Total $365,093,279 $1,509,341,824 $1,618,542,416 $1,695,455,376 $1,790,012,270 $2,055,607,579 Incremental Value: $U44,248,545 $1,253,449,137 $1,330,362,097 $1,424,918,991 $1,690,514,300 %.Annual Change: 8.630/0 9.540/0 6.140/0 7.11 0/0 18.640/0 (11 Secured values include state assessed non-mutary 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 1997-98. 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 of29 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 CONSlTLTANT'S REPORT III. Project Area Assessed Values A. Assessed Values." On August 15, 2007, the Riverside County Assessor announced that he had reduced the 2007-08 assessed values of more than 31,000 parcels due to reductions in their market values to levels below their current assessed values. The total reduction in value was $610 million. This represented an average reduction of$19,677 per parcel. The large majority of these reductions were made to residential properties. The Assessor has been unable to provide the Fiscal Consultant with a listing of the properties that have been reduced in value and so the Fiscal Consultant is unable to determine to what extent value was lost within the Project Area. According to the Assessor, however, any reductions within the Project Area are reflected on the Fiscal Year 2007-08 tax roll values used in the projections. 38 The following table shows the ten largest contributors to the Tax Increment Revenues in the Project Area. TABLE 3 TEMECULA REDEVELOPMENT PROJECT NO.1 TOP TEN TA.XABLE PROPERTY OWNERS FISCAL YEAR 2007-08 Project Area Incremental Value $1,690,514300 Project Area Iotal Value $2,1155,6117,579 % Total Project % Total Property Owner Type of Business Total Value Area Value Inc. Value Advanced Cardiovascular Medical appliances mfg. $276303,807 13 44', 16.34', Systems Inc. ,1,,2) International Rectifier Electronic mfg. 102,635,537 4.99', 6.070/0 T ernecula Town Center Regional shopping center 97,723,919 4.750'0 57'P,O'o Associates Macy's West, rne. \21 Retail department stores 54,314,6114 2.640'0 3.210'0 Inland Western I emecula Commercial shopping center 53,618/147 2.610/0 317', Cornrn ons Kimco Palm Plaza Commercial shopping center 44292,599 2.150/0 2.620/0 DCH Investments Inc.\21 Vacant land/Auto dealer 32,615,3113 1.590'0 1.93'" WGA Bel Villaggio'2> Commercial shopping center 26,211,845 1.2'P,o,o 1.550'0 27511 Ynez Road LL(, Commercial shopping center 25,325,335 1.230'0 1.5()O,o Costeo \Vholesale Corporation Retail store 23. on 78 7 1.12% 1.36% $ 736/168, 783 3581 " 43.54', (11 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. Ie) Owner has pending appeals on one or more parcels. Source: Fiscal Consultant's Report. Advanced Cardiovascular Systems has undertaken an expansion of its campus. The expansion entails construction of over 383,000 square feet of office space and a three-story parking garage and is expected to add approximately $60 million in new value over the next three fiscal years. Advanced Cardiovascular Systems was recently acquired by Abbott Laboratories. This acquisition was an event that required the Assessor to re-assess the Advanced Cardiovascular Systems' properties to full market value. This reassessment is the primary reason that values have increased so dramatically for 2007-08. (The Fiscal Consultant has no assessment appeals data at this time but has been informed by the County Assessor's staff that Advanced Cardiovascular Systems has filed assessment appeals on their 2007-08 values.) When the expansion is completed its share of the Project Area's total and incremental assessed value is likely to Increase. Temecula Town Center Associates is in the process of expanding its mall property improvements to add approximately 126,000 square feet of retail space. This will likely increase this owner's assessed values substantially by Fiscal Year 2010-11. See "APPENDLX B FISCAL CONSULTANT'S REPORT IX New Development Activities" herein for additional information with respect to the Advanced Cardiovascular Systems properties and the Temecula Town Center Associates properties. 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 39 the appropriate county board of equalization or assessment appeals board. After the applicant and the assessor have presented their arguments, 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 ofthe 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 under Article XIIIA of the State Constitution. ()nce 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 for reduction in the "base year" value of an assessment, if successful, 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 2001, there have been a total of 116 appeals filed. Of these, 16 have been allowed with a reduction in value, 60 have been denied or withdrawn and there are 40 assessment appeals currently pending. Reductions in value on the successful appeals have totaled $51,939,125. The amount of assessed value currently under appeal is $311,050,930. 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 that the Agency will experience a loss of assessed value of$8,493,583 on eight of the pending appeals during 2008-09. The following table summarizes the Fiscal Consultant's estimate for losses on pending appeals. Assessment Appeals Summary Total No. of Appeals No. of Resolved Appeals No. of Successful Appeals No. & Value of Average Appeals Reduction Pending Est No. of Appeals Allowed Est. Reduction on Pending Appeals Allowed (2008-09 Value Adjustment) 116 76 16 12.97', 40 ($311,050,930) 8 $8,493,583 Within the top ten tax payers in the Project Area, four have filed five assessment appeals that are currently pending. Advanced Cardiovascular System is seeking a reduction oftheir 2006-07 valuation in the amount of$80.3 million (50.0%). Macy's West Inc., DCHInvestrnentInc. and WGABel Villaggio are other top ten taxpayers that have assessment appeals pending. The table below summarizes the reductions in assessed value sought by those top ten taxpayers. 40 Top Ten Taxpayer Assessment Appeals Owner No. of Value Unuer Opinion Potential ()wner Fiscal Year Parcels Appeal Value Value Loss Advanced Cardiovascular Systems 2006-07 $1611326.726 $80.000.000 $80.326.726 Macy's West Inc. 2006-07 2 45.813.679 19.231.990 26.581.689 DCH Investment Inc. 2005-06 7 23.393.650 11.800.000 1 L593.650 DC'H Investment Inc. 21 II 16-117 5 18,477.297 7.31111.111111 1 U 77.297 WGA Bel Villaggio 211115-116 5 8.9211,432 II 8.9211,432 The Fiscal Consultant is informed by the Assessor's office that Advanced Cardiovascular Systems has filed an appeal of the values enrolled by the Assessor on their properties for 2007-08. The'Fiscal Consultant is not able to include this information in its assessment appeals analysis because the necessary information on the appeal(s) is not yet available. The Advanced Cardiovascular Systems properties were reassessed by the Assessor as the result of the company's acquisition by Abbott Laboratories. This reassessment caused the owners assessed value to increase substantially. According to the Assessor's staff. the assessment appeal that has been filed is not likely to result in any significant reductions in value. 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 XIIIA of the State Constitntion 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 XIIIAofthe State Constitntion. Once the 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 41 Direct and Overlapping Bonded Debt The Direct and Overlapping Bonded Debt Statement of the Project Area. as of is shown below. It does not include the 2007 Bonds. .2007. TABLE 4 TEMECULA REDEVELOPMENT PROJECT NO.1 SECmmD PROPERTY TAX ROLL AND DIRECT AND OVERLAPPING DEBT [T<) BE UPDATED - Around September 24, 2007, CalMuni will produce a hybrid report that reflects the 07-08 assessed values, and updated direct debt, but allocates the 00 applicable based on the 06-07 percentage allocations. It takes several additional weeks to update the % allocations to the 07-08 information.] REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA 21 II 16-117 Assessed Valuation. Base Year Valuation. Incremental Valuation. $ 1.698.336.1168 365.1193.279 $ U33.242. 789 DIREC'T DEBT 21 II 12 Tax Allocation Bonds TOTAL DIREC'T DEBT Total Debt Agency's Share of 6/31111I6 ,., Applicable' 1. Debt 6/31111I6 $27,445.11111 1 11111 ,., $27.445.111111 $27,445.111111"; Ratio to Incremental Valuation: 2.060/0 (lVERLAPPING T A'{ AND ASSESSMENT DEBT Metropolitan Water District Eastern Municipal Water District. I.D No. U-8 Temecula Valley Unified School District City of Temecula Special Tax Obligations Rancho California Water District Rancho Division Rancho California Water District Santa Rosa Division Riverside C'ounty 1915 Act Bonds (Estimate) C'ity of T emecula C'ommunity Facilities District No. 88-12 TOT AL OVERLAPPING T A'{ AND ASSESSMENT DEBT $389.565.11111 1 7.5311.111111 46.835.000 5,490.000 4.365.000 5,495.11111 1 13.11119,493 13.1411.111111 () ()250'o 14.781 12.010 16.511 5043 II 1112 Various 16.511 OVERLAPPING GENERAL FllND DEBT Riverside C'ounty General Fund (lbligations Riverside C'ounty Pension (lbligations Riverside C'ounty Board of Education Mt San Jacinto Comm. College District General Fund Obligations Rancho California Water District General Fund Obligations TOT AL GROSS OVERLAPPING GENERAL FllND DEBT Less: Riverside C'ounty self-supporting obligations Rancho C'alifornia Water District General Fund (lbligations (77 78'., self-supporting) TCJTAL NET (lVERLAPPING GENERAL FllND DEBT $6311.525.566 396.845.11111 1 11.2411.111111 7,480.000 116.700.384 GROSS COMBINED TOTAL DIRECT AND OVERLAPPING DEBT NET COMBINED TOTAL DIRECT AND OVERLAPPING DEBT ll.2960'o 11.296 11.296 0761 3754 $ 97.391 U13.11119 5.624.884 906,454 220,127 659 2.6117.6115 2.169.545 $12.739.674 $ 1.866.356 U 74.661 33.2711 56.923 4.380.932 $7.512.142 57.9911 3. 4117.489 $4.1146.663 $47.696.816'" $44.23U37 ,1, Percentage of overlapping agency's assesseu valuation locateu within bounuaries of the agency ," Excludes tax allocation bonds to be sold. "j Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non-bonded capital lease obligations. Ratios to 2005-06 Assessed Valuation: Gross C'ombmed Total Drrect and Overlapping Debt 2.81 ,., Net C'ombined Total Direct and Overlapping Debt 2.611'., STATE SCHOOL BllILDING AJD REPAYABLE AS OF / 107 $0 S'ource: CalijomiaMunicipal Statistics. Inc. 42 Project Area Pass-Through Agreements See "LIMITATIONS ON TAX INCREMENT REVENUES - Pass-Through Agreernents; Other Contractual (lbligations" herein for a discussion of certain Pass-Through Agreernents and other contracts to which the Agency is a party. The pledge of Tax Incrernent Revenues by the Agency under such agreements is senior to its pledge of Tax Incrernent Revenues under the Indentnres to secure the repayrnent of the Bonds. COVERAGE ANALYSIS The following table sets forth projections of Tax Increment Revenues for the Project Area, together with the estirnated debt service coverage for the non-escrowed portion of the 2007 Bonds to Decernber 15, 2038. These projections are based on certain assurnptions, and no assurance can be given that this or any level of Tax Incrernent Revenues will be achieved. Bond proceeds deposited into the Escrow Fund rnay be released upon satisfaction of certain conditions. See "ESTIMATED S( lURCES AND USES (IF FUNDS- Escrow Fund." See also "RISK FACTORS Estirnated Tax Incrernent Revenues" herein. 43 TABLE 5 TEMEClTLA REDEVELOPMENT PROJECT NO.1 Projected Debt Service Coverage(l]" Estimated Fiscal Total Estimated Excess Tax 2006 2007 Non Non Escrowed Year (June 3U)/ Taxable Incremental Gross Tax Net Tax Total Senior Debt Increment for Subordinate Escrowed Subordinate Subordinate Bond Value Value Increment Increment Senior Debt Service Subordinate Bond Debt Bond Debt Debt Service Year (Dec. 15) (OOO's) (OOO's) (OOO's) (000'S)(2) Service Coverajl;e Oblil!;ations Service Servic~3) Coverajl;e(3) 2008 $2.055.608 $1.690.514 $17.167 $4.173 $2.783.453 1.4990/0 $1.389.418 $147.681 $721.677 1.1420/0 2009 2,137,979 1,772,886 17,992 4,368 2,786,253 1.568 1,581,903 147,681 633,668 1.224 2010 2.248.311 1.883.218 18.992 4.547 2,782,853 1.634 1.763,746 197,681 808.668 1.200 2011 2,367,036 2,UU1,943 20,151 4,8U4 2,783,453 1.726 2,020,684 200,706 806,668 1.267 2012 2,409,646 2Jl44,553 20,579 4,906 2,787,348 1.760 2,118,833 198,506 804,243 1.294 2013 2,453,108 2,088,015 21,016 5,010 2,782,723 1.800 2,227,542 201,238 806,380 1.322 2014 2,497,439 2,132,346 21.461 5,116 2,787,343 1.836 2,329,088 198,688 802,605 1.350 2015 2,542,657 2,177,564 21,915 5,225 2,784,693 1.876 2,440,028 201,078 803,355 1.379 2016 2,588, 779 2,223,686 22,378 5,335 2,784,923 1.916 2,550,253 198,185 808,380 1,407 2017 2,635,824 2,270,731 22,851 5,448 2,786,498 1.955 2,661,342 200,228 802,130 1.438 2018 2,683,810 2,318,716 23,333 5,563 2,786,658 1.996 2,776,100 202,008 800,630 1.468 2019 2,732,755 2,367,662 23,825 5,680 2,784,093 2.040 2,895,881 198,520 808,630 1.498 2020 2,782,679 2,417,586 24,326 5,800 2,783,693 2.083 3,015,841 199,995 805,305 1.531 2021 2,833,602 2,468,508 24,838 5,921 2,785,943 2.125 3,135,543 201,195 806,130 1.561 2022 2,885,543 2,520,449 25,359 6,046 2,784,599 2.171 3,261.277 202,115 806,025 1.594 2023 2,938,523 2,573,429 25,892 6,173 2,785,200 2.216 3,387,554 197,750 809,900 1.627 2024 2,992,562 2,627,469 26.434 6,302 2,782,825 2.265 3,519,345 198,250 810,700 1.662 2025 3,047,682 2,682,589 26,988 6,434 2,787,195 2.308 3,646,979 198,500 805,300 1.697 2026 3,103,905 2,738,812 27,553 6,569 2,783,163 2.360 3,785,656 198,500 809,000 1.733 2027 3,161,252 2,796,159 28,129 6,706 2,785,700 2.407 3,920,456 198,250 806,200 1.769 2028 3,219,746 2,854,653 28,717 6,846 2,784,613 2,459 4,061.627 197,750 807,200 1.807 2029 3,279,410 2,914,317 29,316 6,989 2,783,450 2.511 4,205,675 202,000 806,700 1.843 2030 3,340,268 2,975,174 29,927 7,135 2,783,288 2.563 4,351.581 200,750 804,700 1.883 2031 3,402,342 3, U3 7,249 30,551 7,284 2,783,913 2.616 4,499,614 199,250 806,200 1.922 2032 3,465,658 3,100,565 31,187 7,435 2,783,550 2.671 4,651.608 197,500 810,900 1.961 2033 3,530,240 3,165,147 31,835 7,590 2,783,425 2.727 4,806,397 200,500 808,500 2.001 2034 3,596,114 3,231.021 32.497 7,748 2,783,238 2.784 4,964,342 198,000 809,300 2.044 2035 3,663,305 3,298,212 33,172 7,908 2,782,763 2.842 5,125,729 200,250 808,000 2.086 2036 3,731.841 3,366,747 33,735 7,973 2,786,738 2.861 5,186,068 197,000 809,600 2.102 2037 3,801,746 3,436,653 34,408 8,117 2,784,675 2.915 5,332,627 198,500 808,800 2.141 2038 3,873,050 3,507,957 35,121 8,286 2,784,925 2.975 5,500,592 199,500 805,600 2.186 2039 3,945,780 3,580,687 35,848 8,457 U 0/0 8,457,097 U U oJo (1) [CONFIRM]: For a di~cu~~ion of a~~umption~ made with re~pect to the prQiection~ of total taxable value and Tax Increment Revenue~, ~ee "APPENDIX: B FISCAL CONSULTANT'S REPORT." Among the a~~lImption~ made are an a~~umption ofa two percent growth rate, an increase in values related to property transfers since January 1, 2007 and an increase related to a number of projects identified by the Agency that are currently llllder construction or have been recently completed and are not yet reflected on the tax rolls. In addition, the Agency has identified several development projects that are expected to begin construction within 2007 It is estimated that [projects currently under construction, recently completed or expected to begin construction '"I in 2007 will produce $45 4 million in new assessed value for Fiscal Year 2008-09; $72.3 million of new assessed value for Fiscal Year 2009-10; and, $78.5 million of new assessed value for Fiscal Year 2010-11. Gro~~ Tax Increment Revenue~ le~~ hou~ing ~et-a~ide, ~tatutOIY pa~~-tlrrough payment~ and Senate bill 2557 COllllty Admini~trative charge~. ,3) 2007 Non-E~crowed Subordinate Bond Debt Service exdude~ debt ~eIVice related to the E~crow Term Bond~. Dllurce: Fiscal C.'llnsultant's R~].1ll,.tiCltV c{TeNi<?Cula as hl assessed value and Tax Increment revenues and ,,-:hlne & Yi.JwIgoerg LLL-' as hl debt service. i"prelirninary, subject to change. 44 THE TEMECULA PUBLIC FINANCING AUTHORITY The Temecula Public Financing Authority was established pursuant to a Joint Exercise of Powers Agreernent, 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 irnprovernents for the City and the Agency through the acquisition by the Authority of such public capital irnprovernents and! or the purchase by the Authority oflocal obligations within the rneaning ofthe Act and/or the rnaking 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 2007 Bonds and resell these to the Underwriter. The Authority has no responsibility whatsoever for repayrnent of the 2007 Bonds. CERTAIN LEGAL MATTERS Legal Opinions The legal opinion of()uint & Thimmig LLP, San Francisco, California, as Bond Counsel, approving the validity of the 2007 Bonds, will be rnade available to purchasers at the time of original delivery of the 2007 Bonds, and the proposed form thereof appears in Appendix D hereto. McFarlin & Anderson LLP is serving as Disclosure Counsel to the Agency. Certain legal rnatters will be passed upon for the Agency by Richards, Watson & Gershon, Agency Counsel. Stradling, Y occa, Carlson & Rauth, a Professional Corporation, is acting as Underwriter's Counsel. Enforceability of Remedies The rernedies available to the Trustee and the registered owners of the 2007 Bonds upon an event of default under the Indentnres and any other docurnent described herein are in rnany respects dependent upon regnlatory and judicial actions which are often subject to discretion and delay. Under existing law and judicial decisions, the rernedies provided for under such docurnents rnay not be readily available or rnay be limited. The various legal opinions to be delivered concurrently with the delivery of the 2007 Bonds will be qualified to the extent that the enforceability of the legal docurnents with respect to the 2007 Bonds are subject to limitations irnposed by bankruptcy, reorganization, insolvency or other sirnilar 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 2007 Bonds to provide certain financial inforrnation and operating data relating to the Agency by not later than eight rnonths following the end of the Agency's fiscal year (which reporting date would be March 1), commencing with the report for the 2006-07 Fiscal Year (the "Annual Report"), and to provide notices of the occurrence of certain enurnerated events, if rnaterial. The Annual Report will be filed by the Agency with each Nationally Recognized Municipal Securities Inforrnation Repository, and with the appropriate State information depository, if any. The notices of rnaterial events will be filed by the Agency with the Municipal Securities Rulernaking 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 rnaterial events is set forth in the Forrn of Continuing Disclosure Certificate in Appendix E hereto. These covenants have been rnade in order to assist the Underwriters in cornplying with S.E.C. Rule 15c2-12(b)(5). The Agency has never failed to cornply in all rnaterial respects with any previous undertakings with regard to said Rule to provide annual reports or notices of rnaterial events. 45 ABSENCE OF LITIGATION At the time the 2007 Bonds are delivered, the Agency will certify that, to the best knowledge of the officers of the Agency so certifying, there is no litigation pending with respect to which the Agency has been served with process or known to be threatened against the Agency in any court or other tribunal of cornpetent jurisdiction, State or federal, which seeks to enjoin or challenges the authority of the Agency to participate in the transactions contemplated by this ()fficial Staternent, the 2007 Bonds or the Indentures. TAX MATTERS In the opinion of (luint & Thimmig LLP, San Francisco, California, Bond Counsel, under existing law, subject to the Agency's cornpliance with certain covenants, interest on the 2007 Bonds is excludable frorn gross incorne of the owners thereof for federal incorne tax purposes under Section 55 of the Code, is not includable as an itern of tax preference in cornputing the federal alternative rninirnurn tax for individuals and corporations under the Code but is taken into account in cornputing an adjustrnent used in deterrnining the federal alternative rninirnurn tax for certain corporations. Failure by the Agency to cornply with one or rnore of such covenants could cause interest on the 2007 Bonds to not be excludable frorn gross incorne under Section 103 of the Code for federal incorne tax purposes retroactively to the date of issuance of the 2007 Bonds. In the further opinion of Bond Counsel, interest on the 2007 Bonds is exempt frorn California personal incorne taxes. Bondowners should also be aware that the ownership or disposition of, or the accrual or receipt of interest on, the 2007 Bonds rnay have federal or state tax consequences other than as described above. Bond Counsel expresses no opinion regarding any federal or state tax consequences arising with respect to the 2007 Bonds other than as expressly described above. The form of the opinion Bond Counsel expects to render at the tirne of delivery of the 2007 Bonds is set forth in Appendix D hereto. Should the interest with respect to a series of the 2007 Bonds becorne includable in gross incorne for federal incorne tax purposes, the applicable 2007 Bonds are not subject to early redernption and will rernain outstanding until rnatnrity or until redeerned in accordance with the Indentures. Bond Counsel's opinion rnay be affected by actions taken (or not taken) or events occurring (or not occurring) after the date hereof. Bond Counsel has not undertaken to deterrnine, or to inform any person, whether any such actions taken or events are taken or do occur. UNDERWRITING The Agency will sell the 2007 Bonds to the Authority for imrnediate resale to the Stone & Youngberg LLC (the "Underwriter"). The 2007 Bonds are being purchased frorn the Authority by the Underwriter on , 2007, at a purchase price of $ (which represents the aggregate principal arnount ofthe 2007 Bonds of$ ,less an underwriting discount of$ and less a net original issue discount of $ ). The initial public offering prices stated on the inside cover of this Official Statementrnay be changed frorn tirne to tirne by the Underwriter. The Underwriter rnay offer and sell the 2007 Bonds to certain dealers, banks acting as agents and others at prices lower than said public offering prices. NO RATINGS The 2007 Bonds have not been rated by any securities rating agency. 46 PROFESSIONAL FEES In connection with the issuance of the 2007 Bonds, fees payable to certain professionals, including the Underwriter, Quint & Thimmig LLP, as Bond Counsel, Fieldrnan, 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 2007 Bonds. MISCELLANEOlTS The purpose of this Official Statement is to supply information to prospective buyers of the 2007 Bonds. Quotations frorn, and surnrnaries and explanations of the Indentures and other docurnents and statntes contained herein do not purport to be cornplete, and reference is rnade to such docurnents, Indentures and statutes for full and cornplete staternents of their provisions. Unless otherwise noted, all inforrnation contained in this Official Staternent pertaining to the Agency, the Authority and the Project Area has been furnished by the Agency. Any staternent in this Official Staternent involving rnatters of opinion, whether or not expressly so stated, are intended as such and not as representations of fact. This Official Staternent is not to be construed as a contract or agreernent between the Agency and the purchasers or registered owners of any of the 2007 Bonds. The execution and delivery of this Official Statement has been duly authorized by the Agency. REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA By Shawn Nelson, Executive Director 47 APPENDIX A SUMMARY OF CERT AIN PROVISIONS OF THE SUBORDINATE INDENTURE A-I APPENDIX B FISCAL CONSULTANT'S REPORT APPENDIX C TEMECULA REDEVELOPMENT AGENCY COMPONENT UNIT FINANCIAL STATEMENTS FOR FISCAL YEAR ENDING JUNE 30, 2006 APPENDIX D FORM OF OPINION OF BOND COUNSEL r Jpon delivery of the 200ry Bonds, Quint & Thimmig LLP, San Francisco, California, Bond Counsel to the RedevelopmentAgency of the City ofTemecula proposes to render its final approving opinion with respect to the 200ry Bonds in substantially the following form: ,2007 Redeveloprnent Agency of the City of Temecula 43200 Business Park Drive Ternecula, California 92590 OPINION: $ Redeveloprnent Agency of the City of Ternecula Ternecula Redeveloprnent Project No.1 2007 Tax Allocation Bonds (Subordinate Lien) Mernbers of the Agency: We have acted as bond counsel in connection with the issuance by the Redeveloprnent Agency of the City of Ternecula (the "Agency") of its $_ Redeveloprnent Agency of the City of Ternecula Ternecula Redeveloprnent Project No.1 2007 Tax Allocation Bonds (Subordinate Lien) (the "Bonds"), pursuant to the Cornrnunity RedeveloprnentLaw of the State of California (the "Law"), Resolution No. RDA 07-~, adopted by the Agency on Septernber 25, 2007, and an Indenture of Trust, dated as ofDecernber 1, 2006 (the "Original Indenture"), between the Agency and U.S. Bank National Association, as trustee (the "Trustee"), as supplernented and arnended by the First Supplemental Indenture of Trust, dated as of (lctober 1,2007 (the "First Supplernent"), between the Agency and the Trustee. The (lriginal Indenture, as arnended and supplernented by the First Supplement, is referred to in this opinion as the "Indenture." We have exarnined the law and such certified proceedings and other papers as we deern necessary to render this opmlOn. As to questions of fact rnaterial 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 sarne 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 constitntes a valid and binding obligation of the Agency enforceable in accordance with its terrns. 3. Pursuant to the Law, the Indentnre 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 2006 Bonds and any future Parity Debt, as such terrns are defined in the Indenture, and subordinate to the pledge thereof and lien thereon with respect to any Senior Obligations, as such terrn 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 frorn the sources provided therefor in the Indenture. 5. Subject to the Agency's cornpliance with certain covenants, interest on the Bonds is excludable frorn gross incorne of the owners thereof for federal incorne tax purposes under section 103 of the Internal D-l Revenue Code of 1986, as arnended (the "Code") and, under section 55 of the Code, is not included as an itern of tax preference in cornputing the federal alternative rninirnurn tax for individuals and corporations under the Code, but is taken into account in cornputing an adjustment used in determining the federal alternative rninimurn tax for certain corporations. Failure by the Agency to cornply with one orrnore of such covenants could cause interest on the Bonds to not be excludable frorn gross incorne under section 103 of the Code for federal incorne tax purposes retroactively to the date of issuance of the Bonds. 6. Interest on the Bonds is exernptfrorn personal incornetaxation imposed by the State of California. (lwnership of the Bonds rnay 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 rnay be subject to bankruptcy, insolvency, reorganization, rnoratoriurn and other sirnilar laws affecting creditors' rights heretofore or hereafter enacted and also rnay 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 rnaterial facts. (lur opinion represents our legal judgment based upon such review of the law and the facts that we deern relevant to render our opinion and is not a gnarantee of a result. This opinion is given as of the date hereof and we assurne no obligation to revise or supplement this opinion to reflect any facts or circurnstances that rnay hereafter corne to our attention or any changes in law that rnay hereafter occur. Respectfully subrnitted, D-2 APPENDIX E FORM OF CONTINUING DISCLOSURE CERTIFICATE E-l APPENDIX F GENERAL INFORMATION REGARDING THE CITY Thefollowing information is providedfor general background information on/.v. The City has no responsibility whatsoever with respect to the payment of the 200ry Bonds or the obligations of the Agency under the Subordinate Indenture. General Information Following a vote by the residents on November 7, 1989, the City of Temecula (the "City") incorporated under the general laws of the State of California on Decernber 1, 1989. The City has a Council-Manager forrn of governrnent, and is represented by the five rnernbers of the City Council who are elected at-large to serve a four-year terrn. The Mayor is selected annually by the rnembers of the City Council. The Ternecula 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 rnaintenance in certain areas of the district. (lther governrnental 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 Ternecula City Council does not have a continuing oversight responsibility over these other governrnental entities. Located on Interstate 15, the City of Temecula is the 11th largest city in the Inland Ernpire and the 4th largest in Riverside County, encornpassing 30.15 square rniles. The City of Ternecula is 85 rniles southeast of Los Angeles, 60 rniles north of San Diego, 61 rniles southeast of Orange County, and 20 rniles inlandfrorn the cities of San Juan Capistrano and (lceanside. The City's approximately 97,935 residents are offered a broad range of housing options frorn apartrnents to luxury custorn hornes. Population Frorn 1998 2007, the City's population grew frorn 48,900 to 97,935, a gain of 49,035 or 100.3%. In this sarne period, Riverside County added 580,150, a gain of 40.0%. CITY OF TEMECULA AND COUNTY OF RIVERSIDE POPULATION FROM 1998 TO 2007 T ernecula Riverside C'ounty 1998 1999 2000 2(Hll-l< 2()()2 211113 2004 2005 2006" 211117 Population 48.900 51.600 57.716 6U87 73.134 75.958 78.738 8L804 94.575 97.935 0/0 Change 5.5 11.9 71 184 3.9 37 3.9 156 36 Population 1.451.475 1.490,445 L545.387 U911.1152 1.653.529 1. 725.8911 L805.519 L885.627 1.966.607 2.1131.625 0/0 Change Year 2.7 37 2.9 4.11 4.4 4.6 4.4 4.3 3.3 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 TEMEClTLA BUILDING PERMITS AND VALUATIONS (Calendar Year 2001 - 2006) 2002 2003 2004 Valuation ($000): Residential Non-residential Total $100.516.1 15 43.487.229 !!44.11113.344 $194.699.509 36. 087. 001 $2311.786.5111 $185.(141.089 56.658.233 $241.699.322 Residential Units: Single family Multiple family Total 2005 $261.657J64 73.749.612 $335,4116.776 2006 $145.638.382 144.623.957 $2911.262.339 650 L271 888 996 589 -0- 142 408 360 ...lQ 650 1.413 L296 U56 607 Source" Construction Indusf1:v Research Board. The following table shows historical commercial and residential construction and property values. CITY OF TEMECULA COMMERCIAL AND RESIDENTIAL CONSTRlTCTION AND PROPERTY V ALlTES 1996 - 2006 Commercial Construction(J ' Residential Construction(1 , Number Number Fiscal Year of Permits Value of lTnits Value 1996 136 $23.572 987 $93.674 1997 202 32.863 857 85.257 1998 2113 66.226 835 1115.527 1999 337 159.286 U84 1811.8411 2()()() 437 52,497 U79 148.6611 2001 265 39.511 1.606 169.687 2002 252 51.686 938 97.773 2003 304 41.402 U62 145.387 211114 116 79.579 918 24U22 2()()5 513 49.777 U54 246,466 211116 218 114.1115 6114 133.837 Values in thousands of dollars. Source: (1) City ofTemecula, Building and Safety Department. (2) County Land Use Statistical Recap Report. F-2 Property Values<~) Commercial $1.478.230 U47.000 U21.1144 U78.364 U24.1191 1.935.537 2.1 83.862 2.633.661 2.757,4117 2.894.954 3.1124.934 Residential $ 1.677. 720 L856.203 1.958.7116 2.1167.549 2.3113.3113 2.627.716 3.017.148 4.127.318 4.8118.116 6.895,413 8.1178.687 Economic Condition and Outlook Ternecula's econornic base is anchored by a nurnber offirrns specializing in biornedical technology and supplies, high technology controllers and serni-conductors, arnong others. The City's retail base is also experiencing growth and is horne to several auto dealers including Honda, Toyota and Nissan. The following tables set forth rnajor rnanufactnring and non-rnanufacturing ernployers: CITY OF TEMECULA LARGEST EMPLOYERS BY NUMBER OF EMPLOYEES (As of June 30, 2006) Employer Advanced C'ardiovascular Systems. Inc. (Abbott Laboratories tlk/a Gwdant C'orporation) Temecula Valley Unified School District Professional Hospital Supply International Rectifier Milgard Manufacturing Norm Reeves Auto Group Casteo \Vholesale Corporation C'hannell C'ommercial C'orp. (,herni-Con International Sears Albertson's Plant Equipment. Inc. Robinson's May T emecula C'reek Inn J(' Penney C'ompany C'ity of T emecula Dayton Hudson C'orporation; Target Home Depot Opto 22. Inc. Toyota of Temecula Valley Source: City Finance Department. Financial Information Approximate No. of Employees Type of Business 3,481 Medical equipment 2,512 U52 6211 5511 3611 354 31111 31111 2711 2611 245 2311 Public school system Medical equipment and supplies Power serni-comluctors Winuows Auto Dealer \Vholesale warehouse Cable enclosures Manufacturing Retail Supermarket Telephone equipment Retail Hotel Retail Municipal corporation Retail Retail Manufacturing Auto Dealer 222 221 2118 2()() 2()() 2()() 186 The City's financial records for general governrnental operations are rnaintained on a rnodified accrual basis, with revenues recorded when available and rneasurable and expenditures recorded when the services or goods are received and the liability incurred. Managernent of the City is responsible for establishing and rnaintaining an internal control structure designed to ensure that the assets of the government are protected frorn loss, theft or rnisuse and to ensure that adequate accounting data are cornpiled to allow the preparation of financial staternents in conformity with generally accepted accounting principles. The internal control structnre is designed to provide reasonable, but not absolute, assurance that these objectives are rnet. The concept of reasonable assurance recognizes 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 estirnates and judgments by rnanagement. F-3 Budgetary Policy and Control 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 for preparing 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 departrnent provided that total appropriations for a departrnent are not changed. Changes to total departrnental appropriations require the rnajority approval of the City Council. The City rnaintains budgetary controls to ensure cornpliance with legal provisions ernbodied 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 arnount) is established by departrnent. Sales Tax Assessed Values The City of Ternecula provides high quality services to residents. Industrial and business parks offering clean industries and convenient oftlce space'provide growing employrnent opportnnities. Theretail community is expanding rapidly with excellent shopping venues including the regional Prornenade Mall, a unique Historic Old Town area, and neighborhood stnp centers. A wide selectIOn of restaurants allows diners to choose between nationally recognized chains or intirnate dining bistros. CITY OF TEMECULA SALES TAX HISTORY Year Amount 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 $9,186,547 $10,652.400 $14,009321 $16,321.929 $19.237317 $21.572.199 $25,392.314 $26,070,553 $30.429,106 $30,124,026 Source: City of 'j'emecuia. F-4 CITY OF TEMEClTLA PRINCIPAL SECURED PROPERTY OWNERS FOR FISCAL YEAR 2007-08 Secured Unsecured Total 2007-08 2007-08 Percent of 2007-08 Assessed Assessed Total Assessed Valuation Valuation Assessed Valuation Taxpayer Type of Business (in OOOs) (in OOOs) !Valuation) (in OOOs) Advanceu Cardiovascular System Inc.' 1, Medical Appliances Mfg. $!ii8.1J31 $169.725 2.()go,o $277. 756 International Rectifier Corporation Electronics Mfg. !ii2.636 II 77 !ii2.636 T ernecula Towne Center Associates\21 Regional Shopping ('enter 98.122 II 74 98.122 Macy's Group. Inc. Retail department stores 43.343 10.971 41 54.315 Inland Western Ternecula Commons Commercial Shopping Center 53.618 0 40 53.618 Kimco Palm Plaza Commercial Shopping Center 44.293 0 .33 44.293 WGA Bel Villaggio';: ('ommercial Shopping ('enter 36.588 II .27 36.588 D(,H Investments Inc. ('ommercial Shopping ('enter 32.615 II .24 32.615 27511 Ynez Road LL(, Residential Land 25.325 II 19 25.325 Costo Wholesale Corp. Retail Store 23.1:128 0 ...Jl 23.1:128 Totals $567.599 $180.696 561', $748.296 (1) Advanced Cardiovascular has one unsecured parcel with an assessed value 0[$1,452,563 that is outside the Project Area. 12) Ternecula Town Center Associate has two secured parcels with an aggregate assessed value 0[$397,837 that are outside the Project Area. Ijl WGA Bel Villaggio has 8 parcels with an aggregate assessed value of a combined value 0[$10,376,341 that are outside the Project Area. Source: HdL, Coren & Cone. CITY OF TEMEClTLA ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY FOR THE FISCAL YEARS 2000-01 THROUGH 2007-08 (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 2000-01 $4.563.253 $(29.666) $4.533.587 $(64.372) $4,469.215 $4,469.215 2()(1l-()2 5.2111.11]11 (33.3611) 5.167.6511 (68.938) 51198.712 5.1198.712 2()()2-()3 6.2111.896 (311.11]11) 6.17l.886 (82.926) 6.1188.9611 6.1188.9611 211113-114 6.93l.291 (43.142) 6.888.149 (92.362) 6.795.787 6.795.787 2004-05 7.794.688 (53.240) 7.741.448 (94.237) 7.647.211 7.647.211 2005-06 10.328.(198 (5l.722) 10.276.375 (108.654) 10.167.721 10.167.721 2006-07 1 L836.051 (75,481) 11.760.570 (11 U92) 11.649.1 78 11.649.1 78 211117-118 13,434.244 (88.385) 13.345.859 (113.341) 13.232.517 13.232.517 Source. Riverside County Assessor's qjJice/HdL. Coren & Cone F-5 General Information Industrial Real Estate. According to the Housing Report dated January 8, 2007, the City is part of America's strongest industrial rnarket. In 2002, the Inland Ernpire' s saw its rnanufacturers and distributors take a record 48.0 rnillion square feet of space. However, by June 2006, the area's vacancy rate was down to just 3.8% despite construction of29.5 rnillion square feet in the prior 12 rnonths. In June 2006, the City had 9.8 rnillion square feet of rnanufactnring space in existence or under construction representing 2.7% of the Inland Ernpire's 362 rnillion square feet. (lnly 104,358 square feet of the City's space was vacant, giving it a 1.1% rate, with no facilities under construction. Another 180,356 was occupied but corning on to the rnarket, rnaking 2.9% of its stock eventually available. According to Grubb & Ellis, the Inland Ernpire's office rnarket had 22.3 rnillion square feet of office space cornpleted or under construction in June 2006. The City was the area's sixth largest sub-rnarket with 1,343,720 square feet or 6.0% of the rnarket. This included 1,288,086 square feet of cornpleted space and 55,634 square feet under construction. Agriculture. The clirnate and soil in the City are particularly favorable for growing avocado, grape and citrus crops. There are currently several agricultural rnanagernent firrns in the Ternecula area which rnanage agricultural production of thousands of acres of land owned by individual investors, partnerships and corporations. The agricultural rnanagers apply econornies of scale, by cornbining rnany srnall and rnediurn 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, 2007, there were twenty (20) wineries which produce wine with locally grown grapes. Climate. Temecula Valley enjoys a rnild Mediterranean clirnate with year-round ternperatures averaging in the rnid 70's. The weather is cornparable to the Napa Valley, as evidenced by a thriving wine industry, with warm, dry days and cool evenings. Summer-time temperatnres, which can average in the rnid 80's or the rnid 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 frorn the Pacific by the Santa Rosa range of rnountains, the Rainbow Gap funnels the rnild beach clirnate into the valley. Mild winter temperatnres average in the rnid 60's. Yearly average rainfall in Temecula is approxirnately 14 inches, as cornpiled by the Rancho California Water District. The quality of air in the Ternecula Valley is consistently better than that of surrounding cornrnunities. (lcean breezes flow through the Rainbow Gap almost every day, sweeping away srnog. In the surnrner, Pacific winds yield temperatnres up to 10 degrees lower than in towns just a few rniles away. Education. The City is served by Ternecula Valley Unified School District, one of the fastest growing school districts in the State, with 5 high schools (including 2 alternative schools), 6 rniddle schools, 2 charter schools, 1 horne-schooling prograrn, 18 elernentary schools and 1 adult school. In addition, there are 9 private schools and several pre-schools. The general boundaries extend north to Jean Nicholas Road in French Valley, south to the Riverside County line, east to Vail Lake, and west to the Ternecula city lirnit. The District covers approxirnately 150 square rniles. As of May 14, 2007, approxirnately 28,680 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 Cornrnunity College operates a carnpus ten rniles north of the City to serve the growing population. Ternecula began the 2000's with a well-educated population, and its population trends and school performance fignres have allowed it to rnaintain that position. Transportation. Interstate 15 and its connecting arterials provide convenient links to San Diego and Riverside, Los Angeles (Interstate 10), Orange County (Highway 91) and San Bernardino (Interstate 215). The French Valley Airport, 4 rniles north ofInterstate 15 on Winchester Road, accommodates business jets and commuter airlines. F-6 Housing. Ternecula is unique in that its residents are about equidistant frorn both San Diego and Orange County via the Interstate 15 freeway. As a result, it is receiving growth irnpulses frorn the south as well as the north, as farnilies spill into the Inland Ernpire frorn Southern California's rnore congested coastal counties. Ternecula's rapid population growth represents a relatively new phenornenon in Southern California. A large nurnber of the City's new residents have rnigrated north frorn San Diego County along the Interstate 15 freeway. Normally, a Southern California community undergoes rapid growth only when population spills frorn (lrange or Los Angeles counties. The latest population data shows Ternecula with 97,935 residents as of January 1, 2007, which includes the annexation of the Vail Ranch area in July, 2001 and the March, 2004 annexaiion of the community of Redhawk, which becarne official June 30, 2005. F-7 APPENDIX G BOOK-ENTRY SYSTEM Thefollowingdescription of the procedures and record keeping w ith respect to beneficial ownership interests in the 200ry Bonds, payment of principal of and interest on the 200ry Bonds to Direct Participants, Indirect Participants or Beneficial Owners (as such terms are defined below) of the 200ry Bonds. confirmation and transfer of beneficial ownership interests in the 200ry Bonds and other Bond-related transactions by and between DTC, Direct Participants, Indirect Participants and Beneficial Owners of the 200ry Bonds is based solely on informationfilrnished by DTC to the Agency which 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 the DTC, Direct Participants. 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 Cornpany ("DTC"), New York, New York, will act as securities depository for the 2007 Bonds. The 2007 Bonds will be issued as fully-registered securities registered in the narne of Cede & Co. (DTC's partnership norninee) or such other narne as rnay be requested by an authorized representative ofDTC. (lne fully-registered Bond will be issued for each rnatnrity of the 2007 Bonds, each in the aggregate principal arnount of such rnaturity, and will be deposited with DTC. DTC, the world's largest securities depository, is a lirnited-purpose trust cornpany organized under the New York Banking Law, a "banking organization" within the rneaning of the New York Banking Law, a rnernber of the Federal Reserve Systern, a "clearing corporation" within the rneaning 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 rnillion issues ofU S. and non-U S. equity issues, corporate and rnunicipal debt issues and rnoney rnarket instrurnents frorn over 100 countries that DTC's participants (''Direct Participants") deposit with DTC. DTC also facilitates the post-trade settlement arnong Direct Participants of sales and other securities transactions in deposited securities, through electronic cornputerized book-entry transfers and pledges between Direct Participants' accounts. This eliminates the need for physical rnovement of securities certificates. Direct Participants include both US. and non-US. securities brokers and dealers, banks, trust cornpanies, 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 nurnber of Direct Participants ofDTC and Mernbers of the National Securities Clearing Corporation, Fixed Incorne Clearing Corporation, and Ernerging Markets Clearing Corporation, (NSCc, FICc, and EMCc, also subsidiaries ofDTCC), as well as by the New York Stock Exchange, Inc., the American Stock Exchange LLC., and the National Association of Securities Dealers, Inc. Access to the DTC systern is also available to others such as both US. and non-US. securities brokers and dealers, banks, trust cornpanies and clearing corporations that clear through or rnaintain 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 Cornrnission. More informationaboutDTC can be found at www.dtcc.com and www.dtc.org. Purchases of 2007 Bonds under the DTC systern rnust be rnade by or through Direct Participants, which will receive a credit for the 2007 Bonds on DTC's records. The ownership interest of each actual purchaser of each Bond ("Beneficial Owner") is in tnrn to be recorded on the Direct and Indirect Participants' records. Beneficial Owners will not receive written confirmation frorn DTC of their purchase. Beneficial Owners are, however, expected to receive written confirrnations providing details of the transaction, as well as periodic staternents of their holdings, frorn the Direct or Indirect Participant through which the Beneficial Owner entered into the transaction. Transfers of ownership interests in the 2007 Bonds are to be accornplished by entries rnade on the books of Direct and Indirect Participants acting on behalf of Beneficial (lwners. Beneficial (lwners will not receive certificates representing their ownership interests in the 2007 Bonds, except in the event that use of the book-entry systern for the 2007 Bonds is discontinued. To facilitate subsequent transfers, all 2007 Bonds deposited by Direct Participants with DTC are registered in the narne of DTC's partnership norninee, Cede & Co. or such other narne as requested by an authorized representative of DTC. The deposit of the 2007 Bonds with DTC and their registration in the G-l narne of Cede & Co. or such other DTC norninee do not effect any change in beneficial ownership. DTC has no knowledge of the actual Beneficial Owners of the 2007 Bonds; DTC's records reflect only the identity of the Direct Participants to whose accounts such 2007 Bonds are credited, which rnay or rnay not be the Beneficial (lwners. The Direct or Indirect Participants will rernain responsible for keeping account of their holdings on behalf of their custorners. Conveyance of notices and other cornrnunications by DTC to Direct Participants, by Direct Participants to IndirectParticipants, and by Direct Participants and IndirectParticipants to Beneficial Owners will be governed by arrangements arnong them, subject to any statutory or regnlatory requirernents as rnay be in effect frorn time to tirne. Beneficial (lwners of 2007 Bonds rnay wish to take certain steps to augment the transrnissions to thern of notices of significant events with respect to the 2007 Bonds, such as redernptions, tenders, defaults, and proposed arnendrnents to the 2007 Bonds docurnents. For exarnple, Beneficial (lwners of the 2007 Bonds rnay wish to ascertain that the norninee holding the 2007 Bonds for their benefit has agreed to obtain and transrnit notices to Beneficial Owners. In the alternative, Beneficial (lwners rnay wish to provide their narnes and addresses to the Trustee and request that copies of notices be provided directly to them. Redernption notices shall be sent to DTC. Ifless than all of the 2007 Bonds are being redeemed, DTC's practice is to deterrnine by lot the arnount of the interest of each Direct Participant in such rnaturity to be redeerned. Neither DTC nor Cede & Co. (nor such other DTC norninee) will consent or vote with respect to the 2007 Bonds unless authorized by a Direct Participant in accordance with DTC' s Procedures. Under its usual procedures, DTC rnails an Onmibus Proxy to the Agency as soon as possible after the record date. The (lnmibus Proxy assigns Cede & Co.'s consenting or voting rights to those Direct Participants to whose accounts the 2007 Bonds are credited on the record date (identified in a listing attached to the Ornnibus Proxy). Principal, redemption price and interest payrnents on the 2007 Bonds will be rnade to Cede & Co., or such other norninee as rnay be requested by an authorized representative ofDTC. DTC's practice is to credit Direct Participants' accounts upon DTC's receipt of funds and corresponding detail information frorn the Agency or the Trustee, on payable date in accordance with their respective holdings shown on DTC's records. Payrnents by Participants to Beneficial Owners will be governed by standing instructions and custornary practices, as is the case with securities held for the accounts of custorners in bearer form or registered in "street narne," and will be the responsibility of such Participant and not of DTc, the Trustee or the Agency, subject to any statntory or regnlatory requirernents as rnay be in effect frorn time to tirne. Payrnent of principal, redernption price and interest payrnents to Cede & Co. (or such other norninee as rnay be requested by an authorized representative ofDTC) is the responsibility of the Trustee, disbursernent of such payrnents to Direct Participants will be the responsibility ofDTC, and disbursernent of such payrnents to the Beneficial Owners will be the responsibility of Direct and Indirect Participants. DTC rnay discontinue providing its service as depository with respect to the 2007 Bonds at any tirne by giving reasonable notice to the Agency or the Trustee. Under such circurnstances, in the event that a successor depository is not obtained, the Bond certificates are required to be printed and delivered. The Agency rnay decide to discontinue use of the system of book-en try-only transfers through DTC (or a successor securities depository). In that event, the Bond certificates will be printed and delivered to DTC. The inforrnation in this section concerning DTC and DTC's book-entry systern has been obtained frorn sources that the Agency believes to be reliable, but the Agency takes no responsibility for the accuracy thereof. G-2 Discontinuance ofDTC Services In the event that (a) DTC determines not to continue to act as securities depository for a series of the 2007 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 applicable series of the 2007 Bonds. If the Agency deterrnines 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 rnaturity of the 2007 Bonds registered in the narne of such successor or substitnte securities depository as are not inconsistent with the terms of the applicable Indenture. If the Agency fails to identify another qualified securities depository to replace the incurnbent securities depository for the applicable series of the 2007 Bonds, then the applicable series of the 2007 Bonds shall no longer be restricted to being registered in the Bond registration books in the narne of the incurnbent securities depository or its norninee, but shall be registered in whatever narne or narnes the incurnbent securities depository or its norninee transferring or exchanging the applicable series of the 2007 Bonds shall designate. In the event that the Book-Entry System is discontinued, the following provisions would also apply: (i) the applicable series of the 2007 Bonds will be rnade available in physical forrn, (ii) principal of, and redernption premiurns if any, on the applicable series of the 2007 Bonds will be payable upon surrender thereof at the trust office of the Trustee identified in the applicable Indentnre, and (iii) the applicable series of the 2007 Bonds will be transferable and exchangeable as provided in the applicable Indentnre. The Agency and the Trustee do not have any responsibility or obligation to DTC Participants, to the persons for whom they act as nominees. to Beneficial Owners. or to any other person who is not shmt'J1 on the registration books as being an owner of the 200ry 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 200ry Bonds; (iii! the delivery of any notice which is permitted or required to be given to registered owners under either Indenture; (iv) the selection by DTC or any DTC Participant of any person to receive payment in the event of a partial redemption ofa series of the 200ry Bonds; (v) any consent given or other action taken by DTC as registered owner; or (vi! any other matter arising with respect to a series of the 200ry Bonds or an Indenture. 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 applicable series of the 200ry Bonds paid to DTC or its nominee, as the registered owner, or any notices to the Beneficial Owners or that they will do so on a time!.v basis or will serve and act in a manner described in this Official Statement. The Agency and the Trustee are not responsible or liable for the fllilure ofDTC or any DTC Participant to make any payment or give any notice to a Beneficial Owner in respect to the 200ry Bonds or any error or delay relating thereto. G-3 Quint & Thimmig LLP 8/7/07 8/28/07 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 October 1,2007 Relating to: $ Redevelopment Agency of the City of Temecula Temecula Redevelopment Project No.1 2007 Tax Allocation Bonds (Subordinate Lien) 20005.05:J9515 SECTION 1. Section 10.01. Section 10.02. Section 10.03. Section 10.04. Section 10.05. Section 10.06. Section 10.07. Section 10.07 A. Section 10.08. Section 10.09. Section 10.10. Section 10.11. Section 10.12. SECTION 2. SECTION 3. SECTION 4. SECTION 5. SECTION 6. T ABLE OF CONTENTS Supplement to Original Indenture. ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... 2 ARTICLE X 2007 BONDS Definitions.. ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... 2 Authorization and Issuance of 2007 Bonds ........................................... 3 Terms of 2007 Bonds ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... 3 Redemption....................................................................................... 5 2007 Bonds; Authentication and Delivery............................................. 8 Application of Proceeds of Sale of 2007 Bonds ...................................... 8 2007 Costs of Issuance Fund ................................................................ 9 2007 Escrow Fund. ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... 9 Deposit and Investment of Moneys in Funds ......................................11 Security for 2007 Bonds.. ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... .... 12 Federal Tax Covenants... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... .... 12 Continuing Disclosure ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... .... 12 Effect of this Article X....................................................................... 12 Attachment of Exhibit B. ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... .... 12 Additional Amendments to Original Indenture .......................................................... 12 Partial Invalidity... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... .... 15 Execution in Counterparts. ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... .... 15 Governing Law. ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... .... 15 EXHIBIT A - FORM OF 2007 BONDS -i- FIRST SUPPLEMENTAL INDENTURE OF TRUST THIS FIRST SUPPLEMENTAL INDENTURE OF TRUST (this "First Supplement"), dated as of October 1, 2007, 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, as trustee (the "Trustee") under an Indenture of Trust, dated as of December 1, 2006 (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 $3,040,000 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") for the purpose of 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 2006 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 2007 Tax Allocation Bonds (Subordinate Lien) in the initial aggregate principal amount of $ (the "2007 Bonds"), all to be secured under the Original Indenture on a parity with the 2006 Bonds, to finance redevelopment activities of the Agency; and WHEREAS, this First Supplement is a "Supplemental Indenture" within the meaning of the Original Indenture and the 2007 Bonds are "Parity Debt" within the meaning of the Original Indenture and are secured under the Original Indenture on a parity with the 2006 Bonds; and WHEREAS, the Agency has issued its Redevelopment Agency of the City of Temecula Temecula Redevelopment Project No.1 2002 Tax Allocation Bonds and its Redevelopment Agency of the City of Temecula Temecula Redevelopment Project No.1 2006 Tax Allocation Bonds, Series A (collectively, the "Senior Bonds"), pursuant to the Senior Indenture (as defined in the Original Indenture), which bonds are secured (along with all other Senior Obligations, as such term is defined in the Original Indenture) by a pledge of the Tax Increment Revenues (as defined in the Original Indenture) which is senior to the pledge of Tax Increment Revenues to the repayment of the 2006 Bonds and the 2007 Bonds; and -1- 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 2007 Bonds; and WHEREAS, in providing for the issuance of the 2007 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(c) of the Original Indenture; and WHEREAS, the Agency has determined that all acts and proceedings required by law necessary to make the 2007 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 2007 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 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 October 1, 2007, 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(c). "Closing Date" means October _, 2007, being the date upon which there was a physical delivery of the 2007 Bonds in exchange for the amount representing the purchase price of the 2007 Bonds by the Original Purchaser. "Code" means the Internal Revenue Code of 1986 as in effect on the date of issuance of the 2007 Bonds or (except as otherwise referenced herein) as it may be amended to apply to obligations issued on the date of issuance of the 2007 Bonds, together with applicable proposed, temporary and final regulations promulgated, and applicable official public guidance published, under the Code. -2- "Continuing Disclosure Certificate" means that certain Continuing Disclosure Certificate of the Agency dated as of the Closing Date with respect to the 2007 Bonds, as originally executed and as it may be amended from time to time in accordance with the terms thereof. "Original Purchaser" means Stone & Youngberg LLC, the first purchaser of the 2007 Bonds upon their delivery by the Trustee on the Closing Date. "2007 Bonds" means the Agency's Redevelopment Agency of the City of Temecula Temecula Redevelopment Project No. 1 2007 Tax Allocation Bonds (Subordinate Lien), authorized by and at any time Outstanding pursuant to this Indenture. "2007 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 2007 Bonds, including but not limited to 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), 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 2007 Bonds and any other cost, charge or fee in connection with the original issuance of the 2007 Bonds. "2007 Costs of Issuance Fund" means the fund by that name established and held by the Trustee pursuant to Section 10.07. "2007 Escrow Fund" means the fund by that name established and held by the Trustee pursuant to Section 10.07 A. "2007 Escrow Term Bonds" means the 2007 Bonds maturing on December 15, 2038, bearing the CUSIP Number ____. "2007 Term Bonds" means, collectively, the 2007 Bonds maturing on December 15 in the years __ and _, and the 2007 Escrow Term Bond. Section 10.02. Authorization and Issuance of 2007 Bonds. 2007 Bonds in the aggregate principal amount of ______ Million _______ Hundred _______ Thousand Dollars ($_______), are hereby authorized to be issued by the Agency as Parity Debt under and subject to the terms of this Indenture and the Redevelopment Law. This Indenture constitutes a continuing agreement with the Owners of all of the 2007 Bonds issued hereunder and then Outstanding to secure the full and final payment of principal and premium, if any, and interest on all 2007 Bonds which may from time to time be executed and delivered hereunder, subject to the covenants, agreements, provisions and conditions herein contained. Upon the execution and delivery of the First Supplemental Indenture of Trust, dated as of October 1, 2007, between the Agency and the Trustee, the Agency shall execute and deliver the 2007 Bonds in the aggregate initial principal amount of _____ Million Hundred _______ Thousand Dollars ($_______) to the Trustee, and the Trustee shall authenticate and deliver the 2007 Bonds to the Original Purchaser upon receipt of a Request of the Agency therefor. Section 10.03. Terms of 2007 Bonds. The 2007 Bonds shall be issued in fully-registered form without coupons in denominations equal to $5,000 or any integral multiple thereof. No 2007 Bond shall have more than one maturity date. The 2007 Bonds shall be dated the Closing Date, and shall mature and become payable on December 15 in the following years and shall -3- bear interest at the following interest rates (based on a 360-day year comprised of twelve 30-day months): Year iPecember 15) Principal Amount [to come] Interest Rate Per Annum * Indicates 2007 Escrow Term Bond. Interest on the 2007 Bonds shall be payable on each Interest Payment Date commencing June 15, 2008. Each 2007 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 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 June 1, 2008, in which event it shall bear interest from the Closing Date; or (c) if, as of the date of authentication of any 2007 Bond, interest thereon is in default, in which event such 2007 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 2007 Bonds shall be payable upon presentation and surrender of such 2007 Bonds at maturity or earlier redemption at the Office of the Trustee. The principal of, premium (if any) and interest on the 2007 Bonds shall be payable in lawful money of the United States of America. Payment of the interest on any 2007 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 2007 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 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 2007 Bond is registered as of -4- 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 2007 Bonds maturing on or before December 15,_, shall not be subject to optional redemption prior to maturity. The 2007 Bonds maturing on or after December 15, _, 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 June 15, __, from any available source of funds, at a redemption price equal to the principal amount of the 2007 Bonds 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 June 15, __ through December 14,__ December 15, __ through December 14,__ December 15, _ and thereafter 2% 1 o The Agency shall be required to give the Trustee written notice of its intention to redeem 2007 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 (as such notice is for the convenience of the Trustee). (b) Sinking Account Redemption. The 2007 Term Bonds and the 2007 Escrow Term Bonds shall be subject to redemption in part by lot on December 15 in each of the years set forth in the following respective 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 2007 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 2007 Bonds shall be reduced by the aggregate principal amount of such 2007 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). 2007 Bonds Maturing on December 15,_ Sinking Account Principal Amount Redemption Date To Be Redeemed !December 15) or Purchased -5- 2007 Bonds Maturing on December 15,_ Sinking Account Principal Amount Redemption Date To Be Redeemed (December 15) or Purchased 2007 Escrow Term Bonds Maturing on December 15, 2038 (CUSIP No. _) Sinking Account Redemption Date (December 15) 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 (maturity) Principal Amount To Be Redeemed or Purchased In lieu of redemption of any 2007 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 2007 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 2007 Term 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 such 2007 Term Bonds required to be redeemed pursuant to this subsection (b) on December 15 in such year, upon the presentation of the purchased 2007 Bonds to the Trustee on or prior to November 1 in any year. -6- (c) 2007 Escrow Fund Redemption. The 2007 Escrow Term Bonds shall be subject to redemption in part, by lot, on June 15, 2010 (or on any Revised Escrow Redemption Date established pursuant to Section 10.07 A(b)), from the amount, if any, transferred from the 2007 Escrow Fund to Redemption Account pursuant to Section 10.07A(b), at a redemption price equal to the principal amount of such 2007 Bonds to be redeemed, together with accrued interest thereon to the redemption date, without premium. (d) 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 2007 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; prauided, 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 2007 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 CUSIP numbers, the 2007 Bond numbers and the maturity or maturities (in the event of redemption of all of the 2007 Bonds of such maturity or maturities in whole) of the 2007 Bonds to be redeemed, and shall require that such 2007 Bonds be then surrendered at the Office of the Trustee for redemption at the redemption price, giving notice also that further interest on such 2007 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 2007 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 2007 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 2007 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 2007 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 2007 Bonds to be optionally redeemed, the Trustee shall send written notice to the owners of the 2007 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 2007 Bonds for which notice of optional redemption was given shall remain Outstanding for all purposes of this Indenture. (e) Manner of Redemption. Whenever provision is made in this Section 10.04 for the redemption of less than all of the 2007 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 2007 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 2007 Bonds shall be deemed to be comprised of separate $5,000 denominations and such separate denominations shall be treated as separate 2007 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 2007 Bonds to be redeemed pro rata among maturities. (f) Partial Redemption of 2007 Bonds. In the event only a portion of any 2007 Bond is called for redemption, then upon surrender of such 2007 Bond the Agency shall execute and the Trustee shall authenticate and deliver to the Owner thereof, at the expense of the Agency, a new -7- 2007 Bond or 2007 Bonds of the same series and maturity date, of authorized denominations in aggregate principal amount equal to the unredeemed portion of the 2007 Bond to be redeemed. (g) 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 2007 Bonds so called for redemption shall have been duly provided, such 2007 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. Section 10.05. 2007 Bonds: Authentication and Delivery. The 2007 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 2007 Bonds shall be executed on behalf of the Agency by the signature of its Chairperson 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 2007 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 2007 Bond may be signed and attested on behalf of the Agency by such persons as at the actual date of the execution of such 2007 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 2007 Bond any such person shall not have been such officer of the Agency. Only such of the 2007 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 2007 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 2007 Bonds. Upon the receipt of payment for the 2007 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 "2007 Bond Proceeds Fund" which shall be applied as follows: (a) The Trustee shall deposit in the Interest Account the amount of $____, representing capitalized interest on the 2007 Bonds; (b) The Trustee shall deposit in the 2007 Costs of Issuance Fund the amount of $___; (c) (d) The Trustee shall deposit in the Project Fund the amount of $____; The Trustee shall deposit in the 2007 Reserve Subaccount the amount of $ ; and (e) L___. The Trustee shall deposit in the 2007 Escrow Fund the amount of -8- 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. Section 10.07. 2007 Costs of Issuance Fund. There is hereby established a separate fund to be known as the "2007 Costs of Issuance Fund", which shall be held by the Trustee in trust. The remaining moneys in the 2007 Costs of Issuance Fund shall be used and withdrawn by the Trustee from time to time to pay the 2007 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 2007 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 2007 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 2007 Costs of Issuance Fund shall be closed. Section 10.07 A. 2007 Escrow Fund. There is hereby established a separate fund to be known as the "2007 Escrow Fund", which fund shall be held by the Trustee in trust. (a) Amounts in the Escrow Fund shall be applied as follows: (i) From time to time on any date or dates prior to the transfer of amounts in the Escrow Fund to the Redemption Account under the Indenture (as described in Section 10.07 A(b) below), the Agency may file with the Trustee a Certificate of the Agency which identifies (A) the amount then proposed to be released from the Escrow Fund, and (B) the Maximum Annual Debt Service on the 2006 Bonds, the Senior Bonds and the 2007 Bonds (other than the Maximum Annual Debt Service on the portion, if any, of the 2007 Escrow Term Bonds equal to the amount initially deposited therein and to remain on deposit in the Escrow Fund following such release), which will be in effect following such release. Such Certificate shall conclude that the amount of Tax Increment Revenues for the then current Fiscal Year, as set forth in such Certificate of the Agency (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 the Additional Allowance, shall be at least equal to one hundred ten percent (110%) of Maximum Annual Debt Service on the 2006 Bonds, the Senior Bonds and the 2007 Bonds (other than the Maximum Annual Debt Service on the portion, if any, of the 2007 Bonds equal to the amount initially deposited therein and to remain on deposit in the Escrow Fund following such release). Promptly following receipt of such Certificate of the Agency, the Trustee shall withdraw from the Escrow Fund the amount identified in such Certificate and transfer such amount to the 2007 Reserve Subaccount to the extent necessary to increase the amount on deposit therein to the Reserve Requirement with respect to the 2007 Bonds in effect following such withdrawal, with any remaining amounts withdrawn from the Escrow Fund to be transferred to the Project Fund. (ii) All earnings on the investment of amounts on deposit in the Escrow Fund shall be deposited by the Trustee in the Interest Account four Business Days prior to each Interest Payment Date. (b) On and after May 1, 2010 (the "Initial Escrow Close Date"), the Trustee shall make no further disbursements from the Escrow Fund pursuant to Section 10.07 A(a)(i), and on June 15,2010 (the "Initial Escrow Redemption Date") the Trustee shall transfer -9- all amounts on deposit in the Escrow Fund to the Redemption Account, to be applied to the redemption of 2007 Escrow Term Bonds to the maximum extent possible on the Initial Escrow Redemption Date, as provided in Section 10.04(c). Notwithstanding the foregoing, the Initial Escrow Close Date (and any Revised Escrow Close Date established pursuant to this paragraph) and the Initial Escrow Redemption Date (and any Revised Escrow Redemption Date established pursuant to this paragraph) may be extended from time to time upon receipt by the Trustee, not later than one Business Day prior to the Initial Escrow Close Date (or, if extended pursuant to the terms of this paragraph, the then applicable Revised Escrow Close Date), of: (i) a Request of the Agency requesting such extension and stating (a) the new date after which amounts in the Escrow Fund will no longer be subject to disbursement pursuant to Section 10.07 A(a)(i) (the "Revised Escrow Close Date") which date shall be at least 45 days but not more than 90 days prior to the date such amounts are to be used to redeem 2007 Escrow Term Bonds as described in the following clause (b), and (b) the new date on which 2007 Escrow Term Bonds are to be subject to mandatory redemption from the amounts transferred from the Escrow Fund to the Redemption Account pursuant to this Section 10.07 A(b) (the "Revised Escrow Redemption Date"), which date shall be an Interest Payment Date; (ii) cash (which cash shall immediately be deposited by the Trustee in the Escrow Fund) in an amount determined in writing by an Independent Redevelopment Consultant, together with expected investment earnings thereon and on the amounts in the Escrow Fund (without regard to any withdrawal from the Escrow Fund pursuant to Section 10.07 A(a)(i)) at the rate of return on the permitted investment described in (iii) below, to be sufficient to pay interest on the portion of the 2007 Escrow Term Bonds attributable to the funds then on deposit in the Escrow Fund, from the Initial Escrow Close Date (or, if applicable, the most recently established Revised Escrow Close Date) to the then proposed Revised Escrow Redemption Date, accompanied by such written determination by the Independent Redevelopment Consultant; and (iii) a Permitted Investment or Permitted Investments which provides for the investment of amounts deposited thereunder from the Initial Escrow Close Date (or the most recent Revised Escrow Close Date, if applicable) to the then proposed Revised Escrow Redemption Date, for amounts in the Escrow Fund, and for the amount of cash referred to in the preceding clause (ii) to be deposited in the Escrow Fund, which Permitted Investment or Permitted Investments will provide a fixed rate of return equal to or better than that assumed by the Independent Redevelopment Consultant in its determination pursuant to the preceding clause (ii) above. Notwithstanding the foregoing, in no event shall any Revised Escrow Redemption Date be later than June 15,2011 (the last Interest Payment Date prior to the Interest Payment Date on which principal of the 2007 Escrow Term Bonds first becomes payable under Section 10.03). The Trustee shall provide the Owners of the 2007 Escrow Term Bonds with a written statement as to any Revised Escrow Redemption Date established under this Section 10.07 A(b), promptly following receipt of the Request of the Agency and other documents described in clauses (i) through (iii) above, which notice shall set forth the -10- Initial Escrow Redemption Date (or, if applicable, the most recent Revised Escrow Redemption Date), and shall state that such redemption date has been extended to the newly-established Revised Escrow Redemption Date. In addition, on the Initial Escrow Redemption Date (or, if applicable, the most recent Revised Escrow Redemption Date), the Trustee shall invest all amounts on deposit in the Escrow Fund in the Permitted Investment or applicable Permitted Investments described in clause (iii) above. On or after any Revised Escrow Close Date the Trustee shall make no further disbursements from the Escrow Fund pursuant to Section 10.07 A(a)(i), and on the Revised Escrow Redemption Date the Trustee shall transfer all amounts on deposit in the Escrow Fund to the Redemption Account under the Indenture, to be applied to the redemption of 2007 Escrow Term Bonds to the maximum extent possible on the Revised Escrow Redemption Date as provided in Section 10.04(c). (c) The Escrow Fund shall be closed when no funds remain therein. 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 2007 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. 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. -11- Section 10.09. Security for 2007 Bonds. The 2007 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 2007 Bonds are not so used as to cause the 2007 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 2007 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 2007 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 2007 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 2007 Bonds would have caused the 2007 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 2007 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 2007 Bonds. 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 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 2007 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 Owner of a 2007 Bond 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. 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 2007 Bonds shall be deemed to be "Bonds" under and within the meaning of Section 1.01, and every term and condition contained in the foregoing provisions of this Indenture shall apply to the 2007 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 2007 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: -12- (a) All references to the "2006 Bonds" in Sections 2.05, 2.06 and 2.10 of the Original Indenture are hereby amended to refer to the "2006 Bonds and the 2007 Bonds." (b) 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 2006 Bonds was $______; and as of the Closing Date (as defined in Section 10.01) the Reserve Requirement for the 2007 Bonds was $____." (c) Section 1.01 of the Original Indenture is hereby amended by adding thereto the following: "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). "2007 Reserve Subaccount" means the subaccount within the Reserve Account by that name established and held by the Trustee pursuant to Section 4.03(d)." (d) The term "Reserve Account" in Section 3.02(c) of the Original Indenture is hereby amended to be "2006 Reserve Subaccount." (e) The reference to "Section 3.02(a) in the second sentence of Section 3.04 of the Indenture is hereby amended to refer to "Section 3.02(a) or Section 10.06(c)." (f) Section 4.03(a) of the Original Indenture is hereby amended by adding thereto, as a new last sentence thereof, the following: "Notwithstanding the foregoing, the amount deposited to the Interest Account pursuant to Section 10.06(a) and any investment earnings thereon shall be used solely to pay interest on the 2007 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 2006 Reserve Subaccount and a 2007 Reserve Subaccount. The Trustee shall deposit the amount described in Section 3.02(c) in the 2006 Reserve Subaccount, and shall deposit the amount described in Section 10.06(d) in the 2007 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 -13- 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 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. Amounts in the 2007 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 2007 Bonds, on any date which the principal of or interest on the 2007 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 2007 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 on the fourth 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. 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 -14- 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." 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 2007 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. -15- 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 20005.05,)9515 -16- EXHIBIT A TO FIRST SUPPLEMENTAL INDENTURE OF TRUST EXHIBIT B FORM OF 2007 BONDS No. $ UNITED STATES OF AMERICA STATE OF CALIFORNIA COUNTY OF RNERSIDE REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA TEMECULA REDEVELOPMENT PROJECT NO.1 2007 TAX ALLOCATION BOND (SUBORDINATE LIEN) RA TE OF INTEREST MATURITY DATE December 15,__ ORIGINAL ISSUE DATE October _, 2007 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 Increment Revenues as that term is defined in the Indenture (defined below), 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 Rate of Interest 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 the close of business on the applicable 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 June 1, 2008, 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 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 June 15 and December 15, commencing June 15, 2008 (each an "Interest Payment Date"), calculated on the basis of a 360- day year comprised 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 (the "Trustee") or such 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, as of the close of business on the first calendar day of the month in which an Interest A-I Payment Date occurs (the "Record Date"), or by wire transfer to an owner of $1,000,000 or more in aggregate principal amount of Bonds at such wire transfer address in the United States as such owner shall specify in a written notice requesting payment by wire transfer delivered to the Trustee not later than the Record Date for such payment. This Bond is one of a duly authorized series of bonds of the Agency designated as "Redevelopment Agency of the City of Temecula, Temecula Redevelopment Project No.1 2007 Tax Allocation Bonds (Subordinate Lien)" (the "Bonds"), in an initial aggregate principal amount of _____ Million _______ Hundred _______ Thousand Dollars ($____), 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 December 1, 2006, 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 October 1, 2007, between the Agency and the Trustee (as so amended and supplemented, the "Indenture"), authorizing the issuance of the Bonds. The Bonds are secured under the Indenture on a parity with the Agency's Temecula Redevelopment Project No.1 2006 Tax Allocation Bonds, Series B (Subordinate Lien) previously issued by the Agency in the initial principal amount of $3,040,000 (the "2006 Bonds"). The Agency may issue or incur additional obligations on a parity with the Bonds and the 2006 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 activities of the Agency; (ii) make a deposit to the Reserve Fund created under the Indenture; (iii) pay costs related to the issuance of the Bonds; and (iv) pay interest on the Bonds for a limited period of time. 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 2006 Bonds and any other Parity Debt (as defined in the Indenture) to be issued by the Agency under the Indenture, but subordinate to any Senior Obligations (as defined in the Indenture and referenced below). As and to the extent set forth in the Indenture, all of the Tax Increment Revenues are exclusively and irrevocably pledged in 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 2006 Bonds and any Parity Debt, in any event subordinate to any pledge thereof with respect to any Senior Obligations. Notwithstanding the foregoing, certain amounts out of Tax Increment Revenues may be applied for other purposes as provided in the Indenture. The Agency has issued its Redevelopment Agency of the City of Temecula Temecula Redevelopment Project No.1 2002 Tax Allocation Bonds and 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 Obligations (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 A-2 permits the issuance of additional Senior Obligations 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 (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 December 15, __, 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 June 15, ___ 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 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 June 15, __ through December 14,__ December 15, _ through December 14,_ December 15, __ and thereafter 2% 1 o Bonds maturing on December 15 in the years __ and __, and the 2007 Escrow Term Bonds are subject to redemption from sinking account payments made by the Agency, in part by lot, on December 15 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: 2007 Bonds Maturing on December 15, __ Sinking Account Principal Amount Redemption Date To Be Redeemed iPecember 15) or Purchased A-3 2007 Bonds Maturing on December 15,_ Sinking Account Principal Amount Redemption Date To Be Redeemed iPecember 15) or Purchased 2007 Escrow Term Bonds Maturing on December 15,2038 Sinking Account Redemption Date iPecember 15) 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 (maturity) Principal Amount To Be Redeemed or Purchased The 2007 Escrow Term Bonds maturing on December 15, 2038, are also subject to redemption on June 15, 2010 (or on such later date as may be established pursuant to the Indenture), from the amount, if any, transferred to the Redemption Account from the 2007 Escrow Fund under and as such terms are defined in the 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. A-4 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 Bond is presented by an authorized representative of The Depository Trust Company, a New York corporation (UDTCU), to the Agency or the Trustee for registration of transfer, exchange, or payment, and any Bond 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. 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 Chairperson 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 Chairperson 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 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 rmions 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-7 Agenda Draft dated September 14, 2007 APPENDIX E FORM OF CONTINUING DISCLOSURE CERTIFICATE This C( lNTINUING DISCL< lSURE CERTIFIC ATE (the "Disclosure Certificate") is executed and delivered by the Redeveloprnent Agency of the City of Ternecula (the "Agency") and acknowledged by u.s. Bank National Association, a national banking association, organized and existing under and by virtue ofthe laws of the United States of America, as trustee (the "Trustee") and in its capacity as dissernination agent (the "Dissernination AgenC), in connection with the issuance of $ aggregate principal arnount of Redeveloprnent Agency of the City of Ternecula Ternecula Redeveloprnent Project No. 1 2007 Tax Allocation Bonds (Subordinate Lien) (the "2007 Bonds"). The 2007 Bonds are being issued under an Indenture of Trust, dated as ofDecernber 1,2006 (the "Original Subordinate Indenture"), as supplernented by a First Supplernental Indenture of Trust, dated as of October 1, 2007 (the "First Supplement"), each by and between the Agency and U.S. Bank National Association, as trustee (the "Trustee") and together with the (lriginal Subordinate Indenture and the First Supplernent (the" Subordinate Indenture"). Pursuant to the Subordinate Indenture, the Agency hereby covenants and agrees as follows: Section 1. Puroose 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 2007 Bonds and in order to assist the Participating Underwriter in cornplying with S.E.C. Rule 15c2-12(b)(5). Section 2. Definitions. In addition to the definitions set forth in the Subordinate Indenture, which apply to any capitalized term used in this Disclosure Certificate, unless otherwise defined in this Section, the following capitalized terrns shall have the following rneanings: "Annual Report" shall rnean any Annual Report provided by the Agency pursuant to, and described in, Sections 3 and 4 of this Disclosure Certificate. "Disclosure Representative" shall rnean the Executive Director ofthe Agency, or his or her designee, or such other officer or employee as the Agency shall designate in writing to the Trustee frorn tirne to time. "Dissemination Agent" shall rnean U. S. Bank National Association, or any successor Dissernination 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 rnean any of the events listed in Section 5(a) of this Disclosure Certificate. "National Repository" shall rnean any Nationally Recognized Municipal Securities Information Repository for purposes of the Rule. Inforrnation on the National Repositories as of a particular date is available on the Internet at www.sec.gov/info/rnunicipaVnrrnsir.htrn. "( lfficial Statement" shall rnean the (lfficial Staternent dated distributed in connection with the initial sale of the 2007 Bonds. , 2007, prepared and "Participating Underwriter" shall rnean the original underwriter of the 2007 Bonds required to cornply with the Rule in connection with the offering of the 2007 Bonds. E-l "Repository" shall rnean each National Repository and each State Repository. "Rule" shall rnean Rule 15c2-12(b)( 5) adopted by the Securities and Exchange Commission under the Securities Exchange Act of 1934, as the sarne rnay be arnended frorn tirne to time. "State Repository" shall rnean 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 requirernents of Section 4 of this Disclosure Certificate not later than eight (8) rnonths 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 2006-07 Fiscal Year. (b) Not later than fifteen (15) Business Days prior to said date, the Agency shall provide the Annual Report in a form suitable for reporting to the Repositories to the Dissemination Agent (if other than the Agency) and the Trustee. The Annual Report rnay be subrnitted as a single docurnent or as separate docurnents cornprising a package, and rnay include by reference other information as provided in Section 4 of this Disclosure Certificate;providedthat the audited financial staternents of the Agencyrnay be subrnitted separately frorn 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 sarne rnanner as for a Listed Event under Section 5(c). The Annual Report rnay be provided in electronic format to each Repository and the Participating Underwriter and rnay be provided through the services of a "central post office" approved by the Securities and Exchange Commission. For exarnple, any filing under this Disclosure Certificate rnay be rnade solely by transrnitting such filing to the Texas Municipal Advisory Council (the "MAC") as provided at http://www.disclosureusa.orgunless the United States Securities and Exchange Cornrnissionhas withdrawn the interpretive advice in its letter to the MAC, dated Septernber 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 (or, alternatively, to a "central post office"), in substantially the form attached as Exhibit A. (d) The Dissernination Agent shall: (i) deterrnine each year prior to the date for providing the Annual Report the narne and address of each National Repository and each State Repository, if any; and (ii) ifthe Dissernination Agent is other than the Agency, and ifthe Agency has provided an Annual Report in final form to the Dissemination Agent for dissernination, file a report with the Agency and the Trustee certifying that the Annual Report has been provided to the Repositories (or, alternatively, to a "central post office") pursuant to this Disclosure Certificate, stating the date it was provided and listing all the Repositories (or, alternatively, to a "central post office") to which it was provided. E-2 Section 4. Content of Annual Reoorts. 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 prornulgated to apply to govemrnent entities frorn tirne to tirne by the Governmental Accounting Standards Board. If the Agency's audited financial staternents are not available by the tirne the Annual Report is required to be filed pursuant to Section 3(a), the Annual Report shall contain unaudited financial staternents in a format sirnilar to the financial staternents contained in the final (lfficial Staternent, and the audited financial statements shall be filed in the sarne rnanner as the Annual Report when they becorne available. (b) Staternent. The following financial information and operating data set forth in the final Official (i) Ten largest property tax payers in the Project Area, includingnarne, total value and percentage of total value substantially in the format set forth as Table 3 of the Official Staternent (ii) Annual assessed valuations, tax incrernent values, Tax Increment Revenues (as defined in the Subordinate Indenture) and coverage ratio of Tax Incrernent Revenues to debt service on 2007 Bonds and all Parity Debt (as defined in the Official Staternent), in substantially the formats set forth as Tables 2 and 5 of the (lfficial Staternent; and (iii) Discussion of any property tax appeals, which, either alone or in the aggregate could have a rnaterial adverse effect on Tax Incrernent Revenues. (c) The following information regarding the 2007 Bonds: (i) Balances in all funds and accounts rnaintained with respect to the 2007 Bonds; (ii) A staternent of the Reserve Requirernent for each Series of Bonds; and (iii) (lutstandingprincipal arnount ofthe 2002 Bonds, the 2006 Bonds, the 2007 Bonds, any Parity Bonds and Subordinate Debt (as defined in the Official Statement). Any or all of the iterns listed above rnay be included by specific reference to other docurnents, including official staternents of debt issues of the Agency or related public entities, which have been subrnitted to each of the Repositories or the Securities and Exchange Commission. If the docurnent included by reference is a final official staternent, it rnust be available frorn the Municipal Securities Rulernaking Board. The Agency shall clearly identify each such other docurnent so included by reference. A forrn of information cover sheet for rnunicipal secondary rnarket disclosure recommended by the Municipal Securities Rulemaking Board is attached as Exhibit B. E-3 Section 5. Reoortino: of Si<mificant Events. (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 2007 Bonds, if rnaterial: (i) Principal and interest payrnent delinquencies; (ii) Non-payrnent related defaults; (iii) Unscheduled draws on debt service reserves reflecting financial difficulties; (iv) Unscheduled draws on credit enhancernents reflecting financial difficulties; (v) Substitution of credit or liquidity providers, or their failure to perform; (vi) Adverse tax opinions or events affecting the tax-exernpt status of the security; (vii) Modifications to rights of security holders; (viii) Contingent or unscheduled bond calls; (ix) Defeasances; (x) Release, substitntion, or sale of property securingrepayrnent of the securities; and (xi) Rating changes. (b) As soon as practicable based on the tirne needed to discover the occurrence of a Listed Event, to assess its rnateriality, and to prepare and disserninate the notice, the Agency shall prornptly file a notice of such occurrence with the National Repositories or with the Municipal Securities Rulemaking Board and each State Repository (or, alternatively, to a "central post office"). 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 2007 Bonds pursuant to the Subordinate Indentnre. The Dissernination Agent shall have no responsibility for such determination and shall be entitled to conclusively rely on the Agency's determination. Section 6. Termination of Reoortino- Oblio-ation. All of the Agency's obligations hereunder shall terrninate upon the earliest to occur of (i) the legal defeasance of the 2007 Bonds, (ii) prior redernption of the 2007 Bonds, (iii) payrnent in full of all the 2007 Bonds or (iv) upon the delivery to the Dissernination 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 rnatnrity of the 2007 Bonds, the Agency shall give notice of such terrnination in the sarne rnanner as for a Listed Event under Section 5(c). Section 7. Dissernination Ao:ent. The Agency rnay, frorn tirne to time, appoint or engage a Dissemination Agent to assist in carrying out its obligations under this Disclosure Certificate, and rnay discharge any such Agent, with or without appointing a successor Dissernination Agent. The Dissernination Agent rnay 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 Dissernination Agent E-4 be responsible for filing any report not provided to it by the Agency in a tirnely rnanner and in a form suitable for filing. The Dissemination Agent shall not be responsible in any rnanner for the content of any notice or report prepared by the Agency pursuant to this Disclosure Certificate. The initial Dissernination Agent shall be u.s. Bank National Association. If at any tirne there is no designated Dissemination Agent appointed by the Agency, or if the Dissernination Agent so appointed is unwilling or unable to perforrn the duties of Dissemination Agent hereunder, the Agency shall be the Dissernination Agent and undertake or assurne its obligations hereunder. Any cornpany 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 Dissernination Agent shall be paid cornpensation 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 frorn time to tirne and for all expenses, legal fees and advances rnade or incurred by the Dissemination Agent in the perforrnance 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 deerned to be acting in any fiduciary capacity for the Agency, owners or beneficial owners or any other party. The Dissemination Agent rnay rely and shall be protected in acting or refraining frorn acting upon any direction frorn the Agency or an opinion of nationally recognized bond counsel. Section 8. Amendrnent Waiver. Notwithstanding any other provision of this Disclosure Certificate, the Agency rnay arnend this Disclosure Certificate, and any provision of this Disclosure Certificate rnay be waived, provided that the following conditions are satisfied: (a) if the arnendrnent or waiver relates to the provisions of Sections 3( a), 4 or 5( a), it rnay only be rnade in connection with a change in circurnstances that arises frorn a change in legal requirernents, change in law, or change in the identity, natnre, or statns of an obligated person with respect to the 2007 Bonds, or type of business conducted; (b) the undertakings herein, as proposed to be arnended or waived, would, in the opinion of nationally recognized bond counsel, have cornplied with the requirernents of the Rule at the time of the primary offering of the 2007 Bonds, after taking into account any arnendrnents or interpretations of the Rule, as well as any change in circurnstances; and (c) the proposed arnendrnent or waiver either (i) is approved by owners of the 2007 Bonds in the rnanner provided in the Subordinate Indenture, or (ii) does not, in the opinion of a nationally recognized bond counsel, rnaterially irnpair the interests of the owners or beneficial owners of the 2007 Bonds. In the event of any arnendrnent or waiver of a provision of this Disclosure Certificate, the Agency shall describe such arnendrnent in the next Annual Report, and shall include, as applicable, a narrative explanation of the reason for the arnendrnent or waiver and its irnpact on the type (or, in the case of a change of accounting principles, on the presentation) of financial information or operating data being presented. If an arnendrnent is rnade to the undertaking specifying the accounting principles to be followed in preparing financial staternents, the annual financial inforrnation for the year in which the change is rnade shall present a cornparison between the financial staternents or information prepared on the basis of the new accounting principles and those prepared on the basis of the former accounting principles. The cornparison E-5 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 rneet its obligations. To the extent reasonably feasible, the cornparison shall be quantitative. A notice of the change in the accounting principles shall be sent to the Repositories in the sarne rnanner as for a Listed Event under Section 5(c). The Agency shall not arnend this Disclosure Certificate in a rnanner 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 frorn disseminating any other information, using the rneans of dissernination set forth in this Disclosure Certificate or any other rneans 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 cornply with any provision of this Disclosure Certificate any owner or beneficial owner of the 2007 Bonds rnay take such actions as rnay be necessary and appropriate, including seeking rnandate or specific performance by court order, to cause the Agency to cornply with its obligations under this Disclosure Certificate. A default under this Disclosure Certificate shall not be deerned an Event of Default under the Subordinate Indenture, and the sole rernedy under this Disclosure Certificate in the event of any failure of the Agency to cornply with this Disclosure Certificate shall be an action to cornpel performance. Section 11. Duties. Imrnunities and Liabilities of Dissemination AQ:ent. All of the imrnunities, indenmities and exceptions frorn liability in Article VI of the Subordinate Indentnre 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, ernployees and agents, harrnless against any loss, expense and liabilities which it rnay incur arising out of or in the exercise or perforrnance of its powers and duties hereunder, including the costs and expenses (including attorneys' fees) of defending against any claim of liability, but excluding liabilities due to the Dissernination Agent's negligence or willful rnisconduct. The Dissernination Agent rnay rely and shall be protected in acting or refraining frorn acting upon any direction frorn 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 payrnent of the 2007 Bonds. No person shall have any right to commence any action against the Trustee or Dissemination Agent seeking any remedy other than to cornpel specific performance of this Disclosure Certificate. 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 frorn time to tirne of the 2007 Bonds, and shall create no rights in any other person or entity. Section 13. Notices. Any notice or communications to or arnong any of the parties to this Disclosure Certificate shall be given to all of the following and rnay be given as follows: E-6 If to the Agency: If to the Trustee or the Dissernination Agent: If to the Participating Underwriter: Dated: ,2007 Redeveloprnent Agency of the City of Temecula 43200 Business Park Drive Ternecula, California 92590 Telephone: 951/694-6430 Telecopier: 951/694-6479 Attention: Treasurer 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 Departrnent REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA By: ACCEPTANCE (IF DISSEMINATI< IN AGENT AND TRUSTEE: The undersigned hereby accepts the designation of Dissernination Agent and agrees to cornply with the duties set forth in the foregoing Continuing Disclosure Agreement as Dissemination Agent and Trustee U.S. BANK NATIONAL ASSOCIATION, as Dissernination Agent and as Trustee By: Authorized Signatory E-7 EXHIBIT A NOTICE TO MUNICIPAL SECURITIES RULEMAKING BOARD OF FAILURE TO FILE ANNUAL REPORT Narne ofIssuer: Redeveloprnent Agency of the City of Ternecula Narne of Bond Issue: Ternecula Redeveloprnent Project No.1 2007 Tax Allocation Bonds (Subordinate Lien) Date ofIssuance: ,2007 NOTICE IS HEREBY GIVEN that the Redeveloprnent Agency of the City of Ternecula (the "Agency"), has not provided an Annual Report with respect to the above-narned 2007 Bonds as required by the Continuing Disclosure Certificate, dated as of October 1, 2007, 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 (IF TEMECULA Authorized Officer cc: U.S. Bank National Association E-8 EXIDBIT 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 a<; it appears on the cover of the Official Statement (please include name of state where Issuer is located): Redevelopment Agency ofthe City of Temecula Temecula Redevelopment Project No.1 2007 Tax Allocation Bonds (Subordinate Lien) (Riverside County, California) Provide nine-digit CUSIP'E1 numbers' if available, to which the information relates: Matmity CUSIP" No Matmity CUSIP" No 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 (ifanyl: (Exactly as it appears on the Official Statement Cover) Provide six-digit CUSIP(P) numberlS )..., if available, of Issuer: *(Contact CUSIP'~@ Municipal Di~c1o~ure A~~i~tance Line at 212.438.6518 for a~~i~tancewith obtaining the proper CUSIP@ number~.) E-9 TYPE OF FILING: D Electronic (number of pages attached) D Paper (number of pages attached) If information 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 S~"~':u..:u~~ or CAFR pursuant to Rule 15c2-12 Fiscal Period Covered: C. D Notice of a Material Event pursuant to Rule 15c2-12 (Check as appropriate) 1. D Principal and interest payment delinquencies 6. D Adverse ta.'\: opinion.;; or events affecting the ta.-...;:-exernpt status afthe security D Modifications to the rights of security holders D Bond calls 2. 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. 3. 8. 4. 9. D Defeasances 5. 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 Fa.'\: Relationship to Issuer Zip Code 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-lO Agenda Draft dated September 14, 2007 $ REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA TEMECULA REDEVELOPMENT PROJECT NO.1 2007 TAX ALLOCATION BONDS (SUBORDINATE LIEN) BONDPl~CHASEAGREEMENT ,2007 Redeveloprnent Agency of the City of Ternecula 43200 Business Park Drive Ternecula, California 92590 Ternecula Public Financing Authority 43200 Business Park Drive Ternecula, California 92590 Ladies and Gentlemen: Stone & Youngberg LLC (hereinafter referred to as the "Underwriter") offers to enter into this Bond Purchase Agreernent (the "Bond Purchase Agreement") with the Redeveloprnent Agency of the City of Ternecula (herein referred to as the "Agency") and the TemeculaPublic Financing Authority (herein referred to as the "Authority"), which will be binding upon the Agency, the Authority and the Underwriter upon the acceptance hereof by the Agency and the Authority. This offer is rnade subject to the acceptance hereof by the Agency and the Authority by execution of this Bond Purchase Agreernent and its delivery to the Underwriter on or before 9:00 A.M., California tirne, on the date hereof. All capitalized terrns used herein, but not defined herein, shall have the rneanings ascribed thereto in the Subordinate Indenture (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 frorn the Agency, and the Agency agrees to sell and deliver to the Authority, and the Underwriter hereby agrees to purchase frorn the Authority, and the Authority agrees to sell and deliver to the Underwriter, all (but not less than all) of the Redeveloprnent Agency of the City of Ternecula Ternecula Redeveloprnent Project No. 1 2007 Tax AllocationBonds (Subordinate Lien) (the "2007 Bonds,") in the aggregate principal arnount of$ The purchase price of the 2007 Bonds is $ (which is the aggregate principal arnount of the 2007 Bonds, less an underwriting discountof$ , and less net original issue discount of$ ). The 2007 Bonds will be dated the date of issuance thereof and will have the rnaturities, bear interest at the rates and will be subject to redemption as set forth on Exhibit A hereto. 2. AuthorizinQ: Instrurnents and Law. The 2007 Bonds will be issued pursuant to the provision of the Community Redeveloprnent Law of the State of California, constitnting Part 1 of Division 24 of the Health and Safety Code of the State of California (the "Redeveloprnent Law), and Resolution No. RDA , adopted by the Agency on , 2007 (the "Resolution"). The 2007 Bonds will be issued TEMRDA BPAi.\\pd!.MC/702 under an Indentnre of Trust, dated as of December 1, 2006 (the "Original Subordinate Indenture"), as supplemented by a First Supplernental Indenture of Trust, dated as of October 1, 2007 (the "First Supplement"and together with the Original Subordinate Indentnre, the "Subordinate Indentnre"), each by and between the Agency and U.S. Bank National Association, as trustee (the "Trustee"). The proceeds of the 2007 Bonds will be used to (i) finance redeveloprnent activities within or of benefit to the Project Area, including establishing an escrow fund for such purposes, subject to release upon satisfaction of certain conditions specified in the Subordinate Indenture; (ii) establish a Reserve Account for the 2007 Bonds, and (iii) provide for the costs of issuing the 2007 Bonds. The 2007 Bonds will be special obligations of the Agency, payable frorn and secured by a pledge of the Tax Incrernent Revenues (as defined in the Subordinate Indenture), on a parity with any Parity Debt (as defined in the Subordinate Indentnre) and a pledge of arnounts in certain funds and accounts established under the Subordinate Indentnre, all as further described in the Subordinate Indenture and Final Official Staternent (described below). 3. Public OfferinQ:. The Agency hereby ratifies, confirms and approves of the use and distribution by the Underwriter prior to the date hereof of the prelirninary official staternent, dated , 2007, relating to the 2007 Bonds (the "Preliminary Official Staternent"), which Preliminary Official Statement the Agency has deerned final as of its date for purposes of Rule 15c2-12 prornulgated under the Securities Exchange Act of 1934 (the "Rule"), except for inforrnation perrnitted to be ornitted therefrorn by the Rule. Within seven (7) business days frorn the date hereof (or such earlier date so as to allow the Underwriter to rneet its obligations under the Rule and Rule G-32 of the Municipal Securities Rulernaking Board), the Agency shall deliver to the Underwriter a final official statement relating to the 2007 Bonds, executed on behalf of the Agency by an authorized representative of the Agency and dated the date hereof, which shall include the inforrnation permitted to be ornitted in the Prelirninary Official Staternent by paragraph (b)( 1) of the Rule and with such other arnendrnents or supplernents as shall have been approved by the Agency and by the Underwriter (the "Final Official Statement"). The Underwriter agrees that it will not confirrn the sale of any 2007 Bonds unless the confirrnation of sale is accornpanied 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 2007 Bonds, the Preliminary Official Staternent, the Final Official Staternent, that certain Continuing Disclosure Certificate, dated as of October 1, 2007 (the "Continuing Disclosure Certificate"), and the Subordinate Indentnre (all such docurnents referred to in this sentence, together with this Bond Purchase Agreernent are hereinafter collectively referred to as the "Financing Docurnents"), and all information contained herein and therein and all other docurnents, agreements, certificates or written statements furnished by the Agency to the Underwriter or entered into by the Agency in connection with the transactions conternplated by this Bond Purchase Agreement and the 2007 Bonds. The Agency will undertake, pursuant to the Subordinate Indenture and the Continuing Disclosure Certificate, to provide certain annual financial information and notices of the occurrence of certain events, if rnaterial. A description of this undertaking is set forth in the Prelirninary Official Staternent and will also be set forth in the Final Official Statement. The Underwriter agrees to rnake a bona fide offering of all the 2007 Bonds initially at the public offering prices (or yields) set forth on the inside cover page of the Final Official Staternent. Subsequent to the initial public offering, the Underwriter reserves the right to change the public offering prices (or yields) TEMRDA BPAi.\\pd!.MC/702 2 as they deern necessary in connection with the rnarketing of the 2007 Bonds. The 2007 Bonds rnay be offered and sold to certain dealers at prices lower than such initial public offering prices. 4. The ClosinQ:. At 8:00 A.M" California tirne, on ,2007, or at such other tirne or on such earlier or later business day as shall have been rnutnally agreed upon by the Authority, the Agency and the Underwriter, the Agency will release the 2007 Bonds to the Authority, and the Authority will, subject to the terrns and conditions hereof, cause The Depository Trust Cornpany in New York, New York ("DTC") to release the 2007 Bonds for the beneficial ownership of the Underwriter and the Agency will deliver to the Underwriter the other docurnents hereinafter rnentioned at the offices of Quint & Thimmig LLP, San Francisco, California ("Bond Counsel"), or another place to be rnutually agreed upon by the Agency and the Underwriter. The Underwriter will accept such delivery and pay the purchase price of the 2007 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 payrnent and delivery, together with the delivery of the aforementioned docurnents, is herein called the "Closing." 5. AQ:encv Reoresentations. 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 "Constitntion") and laws of the State of California (the "State"), including the Redeveloprnent Law, with full right, power and authority to sell, issue and deliver the 2007 Bonds to the Authority for sale to the Underwriter as provided herein, and to execute, deliver and perform its obligations under the 2007 Bonds, this Bond Purchase Agreernent, the Continuing Disclosure Certificate and the Subordinate Indenture. (b) This Bond Purchase Agreernent, the 2007 Bonds, the Continuing Disclosure Certificate and the Subordinate Indenture, 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 terrns, except as the enforceability thereof rnay be lirnited by the application of equitable principles, if equitable rernedies are sought, or by applicable bankruptcy, insolvency or other sirnilar 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 Agreernent, the Continuing Disclosure Certificate and the Subordinate Indenture, to issue and deliver the 2007 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 2007 Bonds, this Bond Purchase Agreernent, the Continuing Disclosure Certificate and the Subordinate Indentnre. (d) As of the date thereof, the Final Official Staternent did not contain any untrue statement of a rnaterial fact or ornit to state a rnaterial fact required to be stated therein or necessary to rnake the staternents therein, in light of the circurnstances under which they were rnade, not rnisleading. (e) Ifbetween the date hereof and the date which is 25 days after the End of the Underwriting Period (as hereinafter defined) for the 2007 Bonds, an event occurs of which the Agency has knowledge and whichrnight or would cause the information contained in the Final Official Statement, as then supplernented or arnended, to contain any untrue staternent of a rnaterial fact or to ornit to state a rnaterial fact required to be stated therein or necessary to rnake the information therein, in the light of the circurnstances under which it was presented, not rnisleading, the Agency will notify the Underwriter, and, if in the opinion of the TEMRDA BPAi.\\pd!.MC/702 3 Agency, Disclosure Counsel, the Underwriter or its counsel, such event requires the preparation and publication of a supplernent or arnendrnent to the Final Official Statement, the Agency will forthwith prepare and furnish to the Underwriter (at the expense of the Agency) a reasonable nurnber of copies of an arnendrnent of or supplernent to the Final Official Staternent (in forrn and substance satisfactory to Bond Counsel, Disclosure Counsel and Counsel for the Underwriter) which will arnend or supplernent the Final Official Statement so that it will not contain any untrue statement of a rnaterial fact or ornit to state a rnaterial fact necessary in order to rnake the statements therein, in the light of the circurnstances existing at the tirne the Final Official Staternent is delivered to the Underwriter, not rnisleading. 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 2007 Bonds, the Agency will furnish such information with respect to itself as the Underwriter rnay frorn time to tirne reasonably request. (f) If the information contained in the Final Official Staternent is arnended or supplemented pursuant to paragraph (e) hereof, at the tirne of each supplement or arnendrnent thereto, the portions of the Final Official Statement so supplemented or arnended (including any financial and statistical data contained therein) will not contain any untrue statement of a rnaterial fact or ornit to state a rnaterial fact required to be stated therein or necessary to rnake the information therein, in the light of the circurnstances under which it was presented, not rnisleading. (g) As used herein and for the purposes of the foregoing, the term "End of the Underwriting Period" for the 2007 Bonds shall rnean 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 2007 Bonds has occurred under the Rule; provided. however, that the Agency rnay treat as the End of the Underwriting Period for the 2007 Bonds the date specified as such in a notice frorn 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 rnaterial adverse changes in the financial condition of the Agency or any rnaterial adverse change in the valuation of taxable property in the Project Area (as described in the Final Official Staternent) since the date of the Final Official Staternent. (i) As ofthetirne of acceptance hereof and as of the time of the Closing, the Agency is not and will not be in rnaterial breach of or in rnaterial default under any applicable law or adrninistrative regnlation of the State or the United States of America, or any applicable judgment or decree or any trust agreement, loan agreernent, bond, note, resolution, ordinance, agreernent or other instrurnent to which the Agency is a party or is otherwise subject which breach would have a rnaterial adverse effect on the 2007 Bonds; and, as of such tirnes, the execution and delivery by the Agency of this Bond Purchase Agreement, the Subordinate Indenture, the Continuing Disclosure Certificate and the 2007 Bonds, and cornpliance by the Agency with the provisions of each of such agreernents or instrurnents do not and will not conflict with or constitnte a breach of or default under any applicable law or adrninistrative regnlation of the State or the United States of America applicable to the Agency or any applicable judgment or decree or any trust agreernent, loan agreement, bond, note, resolution, ordinance, agreement or other instrurnent to which the Agency is a party or is otherwise subject which breach or default would have a rnaterial adverse effect on the 2007 Bonds. (j) Between the tirne of acceptance hereof and the Closing, the Agency will not, without the prior written consent of the Underwriter, issue any 2007 Bonds or securities with a pledge of or lien on the Tax Increment Revenues. (k) As of the tirne of acceptance hereof and the Closing, and except as described in the Final Official Statement, no litigation is or will be pending and served upon the Agency or, to the knowledge of TEMRDA BPAi.\\pd!.MC/702 4 the Agency, threatened in any court (i) in any way challenging any rnernber 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 2007 Bonds, or the collection of the Tax Increment Revenues which are pledged to pay the principal of and interest on the 2007 Bonds, or in any way contesting or affecting the validity of the 2007 Bonds, this Bond Purchase Agreement, the Subordinate Indentnre, the Continuing Disclosure Certificate or the collection of the Tax Incrernent Revenues, or the pledge of the Tax Incrernent Revenues under the Subordinate Indenture, or contesting the powers of the Agency or its authority for the issuance of the 2007 Bonds, or (iii) contesting in any way the cornpleteness, accuracy or fairness of the Final 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 Incrernent Revenues of the Agency superior to or on a parity with the lien of the 2007 Bonds on the Tax Incrernent Revenues except as otherwise described in the Final Official Staternent. (rn) The Agency will furnish such inforrnation, execute such instrurnents and take such other action in cooperation with the Underwriter, at the expense of the Underwriter, as it rnay reasonably request in order to qualify the 2007 Bonds for offer and sale under the "blue shey" or other securities laws and regnlations of such states and other jurisdictions of the United States of America as the Underwriter rnay designate; provided. however, that the Agency will not be required to execute a special or general consent to service of process or qualify as a foreign corporation in connection with any such qualification in any jurisdiction. (n) At the tirne of acceptance hereof and as of the date of the Closing, all approvals, consents or orders required of the Agency by any governmental 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 Agreernent, the 2007 Bonds, the Subordinate Indenture and the Continuing Disclosure Certificate have been obtained. (0) The 2007 Bonds are subordinate to the pledge of and lien on the Tax Increment Revenues under the Senior Indenture (as defined below). (p) The Agency is in cornpliance with its statutory reporting requirernents under the Redeveloprnent Law and the Agency has no "excess surplus" as defined in California Health and Safety Code Section 33334.12(g)(i). 6. Reoresentations. Warranties and A!ITeements of the Authoritv. The Authority represents, warrants and agrees with the Agency and the Underwriter as follows: (a) The Authority is a joint exercise of powers authority 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 Agreernent, and to perforrn the actions on its part contemplated hereby. (c) By all necessary official action, the Authority has duly authorized and approved the execution and delivery of, and the perforrnance by the Authority of the obligations on its part contained in this Bond Purchase Agreement. TEMRDA BPAi.\\pd!.MC/702 5 (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 2007 Bonds or the execution and delivery by the Authority of this Bond Purchase Agreernent, nor, to the best knowledge of the officer of the Authority executing this Bond Purchase Agreernent, is there any basis for any such action, suit, proceeding, inquiry or investigation, wherein an unfavorable decision, ruling or finding would rnaterially adversely affect the authorization, execution, delivery or performance by the Authority of this Bond Purchase Agreernent. (e) Any certificate signed by any officer of the Authority and delivered to the Underwriter pursuant to this Bond Purchase Agreernent, or any docurnent contemplated hereby shall be deerned a representation and warranty by the Authority to the Underwriter as to the statements rnade therein. 7. ClosinQ: Conditions. The Underwriter has entered into this Bond Purchase Agreernent in reliance upon the representations, warranties and covenants ofthe Authority and the Agency contained herein and the perforrnance 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 Agreernent also are and shall be subject to the following conditions: (a) At the Closing Date, the 2007 Bonds, the Bond Purchase Agreernent, the Subordinate Indenture, the Continuing Disclosure Certificate and the Final Official Staternent shall have been duly authorized, executed and delivered by the respective parties thereto, in substantially the forms heretofore subrnitted to the Underwriter with only such changes as shall have been agreed to by the Underwriter, and said agreements shall not have been arnended, rnodified or supplernented, except as rnay have been agreed to by the Underwriter, and there shall have been taken in connection therewith, with the issuance of the 2007 Bonds and with the transactions contemplated thereby and by this Bond Purchase Agreernent, all such actions as Bond Counsel shall deern to be necessary and appropriate. (b) The representations and warranties of the Authority and the Agency contained in this Bond Purchase Agreernent, the Subordinate Indenture and the Continuing Disclosure Certificate shall be true and correct in all rnaterial respects on the date hereof and on the Closing Date, as if rnade again on the Closing Date, and the Final Official Statement (as the sarne rnay be supplernented or arnended with the written approval of the Underwriter) shall be true and correct in all rnaterial respects and shall not contain any untrue staternent or fact or ornit to state any fact required to be stated therein or necessary to rnake the staternents therein, in light of the circurnstances under which such statements were rnade, not rnisleading. (c) At the time of the Closing, the Authority and the Agency shall perforrn or have performed all of their obligations required under or specified in the Financing Docurnents at or prior to the Closing. (d) At the tirne of the Closing, no default shall have occurred or be existing under the Bond Purchase Agreernent, the Subordinate Indenture and the Continuing Disclosure Certificate and the Agency shall not be in default in the payrnent of principal or interest on any of its indebtedness which default shall rnaterially adversely impact the ability of the Agency to repay the 2007 Bonds. (e) In recognition of the desire of the Agency and the Underwriter to effect a successful public offering of the 2007 Bonds, and in view of the potential adverse irnpact of any of the following events on TEMRDA BPAi.\\pd!.MC/702 6 such a public offering, the Underwriter shall have the right to terminate this Bond Purchase Agreement by written notification to the Agency and the Authority if at any tirne at or prior to the Closing: (i) the rnarketability of the 2007 Bonds or thernarket price thereof, in the reasonable opinion of the Underwriter, has been rnaterially adversely affected by any event occurring which causes any staternent contained in the Final Official Staternent to be rnaterially rnisleading or results in a failure of the Final Official Staternent to state a rnaterial fact necessary to rnake the staternents in the Final Official Statement, in the light of the circurnstances under which they were rnade, not rnisleading; or (ii) the rnarketability of the 2007 Bonds or the rnarket price thereof, in the reasonable opinion of the Underwriter, has been rnaterially adversely affected by an arnendrnent 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 arnendrnent of legislation pending as of the date of this Bond Purchase Agreernent in the Congress of the United States of America, or the recommendation to Congress or endorsernent for passage (by press release, other form of notice or otherwise) oflegislation by the President of the United States of America, the Treasury Departrnent of the United States of America, the Internal Revenue Service or the Chairperson orranking rninority rnernber of the Committee on Finance of the United States Senate or the Cornrnittee on Ways and Means of the United States House of Representatives, or the proposal for consideration oflegislation by either such Committee or by any rnember thereof, or the presentrnent of legislation for consideration as an option by either such Committee, or by the staff of the Joint Cornrnittee 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 Cornrnittee 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, ternporary or proposed) or official staternent on behalf of the United States Treasury Departrnent, the Internal Revenue Service or other federal or State authority rnaterially adversely affecting the federal or State tax statns of the Agency, or the interest on bonds or notes or obligations of the general character of the 2007 Bonds; or (iii) any legislation, ordinance, rule orregnlation shall be introduced in, or be enacted by any governrnental body, department or agency of the State, or a decision by any court of cornpetent jurisdiction within the State shall be rendered which rnaterially adversely affects the rnarket price of the 2007 Bonds; or (iv) a stop order, ruling, regnlation or official staternent by, or on behalf of, the Securities and Exchange Cornrnission or any other governmental agency having jurisdiction of the subject rnatter shall be issued or rnade to the effect that the issuance, offering or sale of obligations of the general character of the 2007 Bonds, or the issuance, offering or sale of the 2007 Bonds, including all underlying obligations, as conternplated hereby or by the Final Official Staternent, is in violation or would be in violation of any provision of the federal securities laws, including the Securities Act of 1933, as arnended and as then in effect, or that the Subordinate Indenture needs to be qualified under the Trust Indenture Act of 1939, as arnended 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 2007 Bonds, or the 2007 Bonds, are not exernpt frorn registration under or other requirernents of the Securities Act of 1933, as arnended and as then in effect, or the Securities Exchange Act of 1934, as arnended and as then in effect, or that the Subordinate Indenture TEMRDA BPAi.\\pd!.MC/702 7 is not exernpt frorn qualification under or other requirernents of the Trust Indentnre Act of 1939, as arnended and as then in effect or (vi) additional rnaterial restrictions not in force as of the date hereof shall have been irnposed upon trading in securities generally by any governmental authority or by any national securities exchange which restrictions rnaterially adversely affect the Underwriter's ability to rnarket the 2007 Bonds; or (vii) a general banking rnoratoriurn shall have been established by federal or State authorities; or (viii) the United States of America has becorne engaged in hostilities which have resulted in a declaration of war or a national ernergency or there has occurred any other outbreak of hostilities or a national or international calarnity or crisis, financial or otherwise, the effect of such outbreak, calarnity or crisis on the financial rnarkets of the United States of America, being such as, in the reasonable opinion of the Underwriter, would affect rnaterially and adversely the ability of the Underwriter to rnarket the 2007 Bonds (it being agreed by the Underwriter that there is no outbreak, calarnity 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, rnaterially adversely affects the rnarket price of the 2007 Bonds; or (x) the commencernent of any action, suit or proceeding described in paragraph 5(k) hereof, which, in the reasonable judgment of the Underwriter, rnaterially adversely affects the rnarket price of the 2007 Bonds. (f) At or prior to the Closing, the Underwriter shall receive with respect to the 2007 Bonds (unless the context otherwise indicates) the following docurnents: (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 Final Official Statement, together with a letter frorn such counsel, dated the date of the Closing and addressed to the Underwriter, to the effect that the foregoing opinions addressed to the Agency rnay be relied upon by the Underwriter to the sarne extent as if such opinion were addressed to it. (ii) Supplemental Opinion. Asupplernental opinion or opinions of Bond Counsel addressed to the Underwriter, dated the date of the Closing to the following effect (A) the 2007 Bonds are not subject to the registration requirernents of the Securities Act of 1933, as arnended, and the Subordinate Indenture is exernpt frorn qualification pursuant to the Trust Indentnre Act of 1939, as arnended; (B) this Bond Purchase Agreernent has been duly executed and delivered by the Agency and the Authority and (assurning due authorization, execution and delivery by and validity against the Underwriter) is a valid and binding agreernent of the Agency and the Authority, except as enforcernent thereof rnay be lirnited by bankruptcy, insolvency or other laws affecting enforcernent of creditors' rights and by the application of equitable principles if equitable remedies are sought; and TEMRDA BPAi.\\pd!.MC/702 8 (C) the statements contained in the Final Official Staternent under the captions "INTRODUCTION," "THE 2007 BONDS" (except for information relating to the Depository Trust Cornpany and the book-entry systern for registration of the 2007 Bonds), "SECURITY FOR THE 2007 BONDS," and "TAX MATTERS," and in Appendices A and D, are accurate insofar as such statements expressly summarize certain provisions of the 2007 Bonds, the Subordinate Indenture and the opinion attached as Appendix D to the Final Official Statement; provided that Bond Counsel need not express any opinion with respect to any financial or statistical inforrnation 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 2007 Bonds, the Continuing Disclosure Certificate, the Subordinate Indenture and this Bond Purchase Agreement and approving the Prelirninary Official Staternent has been duly adopted at a rneeting 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 quorurn was present and acting throughout, and the Resolution is in full force and effect and has not been rnodified, arnended or rescinded; (C) the inforrnation in the Final 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 inforrnation (excluding therefrorn the financial and statistical data and forecasts included therein as to which no opinion need be expressed) contains any untrue staternent of a rnaterial fact or ornits to state a rnaterial fact necessary to rnake the staternents therein, in light of the circurnstances under which they were rnade, not rnisleading; (D) to the best of such counsel's knowledge, except as otherwise disclosed in the Final Official Staternent, 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 2007 Bonds, this Bond Purchase Agreernent, the Continuing Disclosure Certificate or the Subordinate Indenture, or seeking to restrain or enjoin any of the transactions referred to therein or conternplated thereby, or under which a deterrnination adverse to the Agency would have a rnaterial adverse effect upon the Agency's ability to pay principal of and interest on the 2007 Bonds when due, or which, in any rnanner, questions the right of the Agency to issue the 2007 Bonds or to use the Tax Increment Revenues for repayrnent of the 2007 Bonds or affects in any rnanner the right or ability of the Agency to collect or pledge the Tax Incrernent 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 Docurnents and the authorization and distribution of the Prelirninary Official Staternent and the Final Official Staternent (provided that no opinion need be TEMRDA BPAi.\\pd!.MC/702 9 expressed as to any action required under State securities or "blue sh:y"laws in connection with the purchase or distribution of the 2007 Bonds by the Underwriter); (F) the Agency is not in breach of or default under any applicable law or adrninistrative regnlation of the State or any applicable judgment or decree or any loan agreement, trust agreernent, certificate, resolution, agreernent or other instrurnent to which the Agency is a party, or is otherwise subject, which breach or default would rnaterially adversely affect the Agency's ability to enter into or perforrn its obligations under the Financing Docurnents and no event has occurred and is continuing which, with the passage of tirne or the giving of notice, or both, would constitnte a default or an event of default under any such instrurnent and which would rnaterially adversely affect the Agency's ability to enter into or perform its obligations under the Financing Docurnents; (G) except as described in the Final Official Staternent, interest on the 2007 Bonds and costs of issuance are not includable in the calculation of the lirnitations under the 1991 Settlement Agreement (as defined in the Final Official Staternent); and (H) except as described in the Final Official Staternent with respect to Pass-Through Agreernents 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 IncrernentRevenues to payrnent of the 2007 Bonds. (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 Subordinate Indentnre and the Continuing Disclosure Certificate are true and correct in all rnaterial respects on and as of the date of the Closing as if rnade on the date of the Closing; and (B) no event affecting the Agency has occurred since the date of the Final Official Staternent which has not been disclosed therein, or in any supplernent or arnendrnent thereto, which event should be disclosed in the Final Official Staternent in order to rnake the staternents therein, in the light of the circurnstances under which they were rnade, not rnisleading. (C) The Agency entered an Owner Participation Agreernent between the Agency and International Rectifier Corporation ("International Rectifier"), on Decernber 9, 1997 which was arnended on Decernber 15, 1998. Pursuant to the agreement, the Agency notified International Rectifier on April 23, 2002, that the agreernent was terminated. International Rectifier never satisfied the requirernents of the agreernent and no payrnents were ever rnade by the Agency pursuant to the agreement. The Agency's outstanding Multifarnily Housing Revenue Bonds, issued April 25, 1996, and the loan frorn Washington Mutual Bank, FA are not payable frorn Tax Incrernent Revenues. TEMRDA BPAi.\\pd!.MC/702 10 (v)AuthorityCertificate. A certificate of the Authority, dated the date ofthe 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 ofthe Authority contained herein are true and correct in all rnaterial respects on and as of the date of the Closing as if rnade on the date of the Closing; and (B) no event affecting the Authority has occurred since the date of the Final Official Staternent which has not been disclosed therein, or in any supplement or arnendrnent thereto, which event should be disclosed in the Final Official Staternent in order to rnake the staternents with respect to the Authority therein, in the light of the circurnstances under which they were rnade, not rnisleading. (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 cornpleteness of the statements contained in the Final Official Staternent, and based upon its participation in the preparation of the Final Official Staternent, 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 Final Official Staternent or as of the date of the Closing (except for any financial, statistical, econornic or engineering data or forecasts, nurnbers, charts, tables, graphs, estirnates, projections, assurnptions or expression of opinion, any inforrnation about valuation, archaeological or environmental rnatters, the Appendices thereto or any information about book- entry, The Depository Trust Cornpany or tax exernption included therein, as to which no opinion need be expressed) contained any untrue statement of a rnaterial fact or ornitted to state a rnaterial fact required to be stated therein or necessary to rnake the staternents therein, in the light of the circurnstances under which they were rnade, not rnisleading. (vii) Trustee's Certificate. A certificate of the Trustee, 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 cornply with the terrns of the Subordinate Indenture and to perforrn 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 under the laws of the United States of America, with full corporate power to undertake the trust duties and obligations of it under the Subordinate Indenture and its obligations under the Continuing Disclosure Certificate; (B) the Trustee has duly authorized, executed and delivered the Subordinate Indenture, and by all proper corporate action has authorized the acceptance of the duties and obligations of the Trustee under the Subordinate Indentnre and to authorize in such capacity the authentication and delivery of the 2007 Bonds; TEMRDA BPAi.\\pd!.MC/702 11 (C) assurning due authorization, execution and delivery thereof by the Agency, the Subordinate Indentnre and the Continuing Disclosure Certificate constitute the valid, legal and binding agreements of the Trustee, enforceable in accordance with their respective terrns, except as such enforcernentrnay be lirnited by banktuptcy, insolvency, reorganization or other sirnilar laws affecting the enforcement of creditors' rights in general and by general equity principles (regardless of whether such enforcernent is considered in a proceeding in equity or at law); and (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 rnade with governmental agencies in order to preserve the Trustee's authority to perforrn a trust business (aU of which routine filings such counsel believes, after reasonable inquiry and investigation, to have been made), no consent, approval, authorization or other action by any governrnental or regnlatory authority havingjurisdiction over the Trustee is or will be required for the execution and delivery by the Trustee of the Subordinate Indenture or the authentication by the Trustee of the 2007 Bonds. (ix) Certain Financing Documents. An executed copy of the Subordinate Indenture, the Indenture of Trust, dated as of April 1, 2002 (the "Original Senior Indenture"), by and between the Agency and the Trustee, and a First Supplernental Indenture of Trust, dated as ofDecernber 1,2006 (the "First Supplemental Series AIndenture"), by and between the Agency and Trustee (together the "Senior Indenture") and of the Continuing Disclosure Certificate. (x) City Resolution. A copy of the Resolution adopted by the City Council and certified by the City Clerk or Assistant City Clerk of the City approving issuance by the Agency of the 2007 Bonds. (xi) Agency Resolution. A copy of the Resolution adopted by the Agency and certified by the Secretary or Assistant Secretary of the Agency authorizing the execution and delivery of the Subordinate Indenture, this Bond Purchase Agreernent 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 this Bond Purchase Agreement. (xiii) Form 8038-G. Evidence that the federal tax inforrnation 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) Final Official Statement. An executed copy of the Final Official Staternent. (xvi) Preliminary Official Statement. An executed certificate, dated the date of the Preliminary Official Statement, of the Agency in the form of Exhibit B hereto. (xvii) TCLY Certificate. An Arbitrage Certificate of the Agency relating to the 2007 Bonds in form satisfactory to Bond Counsel. TEMRDA BPAi.\\pd!.MCI702 12 (xviii) Certificate of Fiscal Consultant. An executed certificate, dated the date of the closing, addressed to the Agency and the Underwriter in the form of Exhibit C hereto. (xL'{)Additional DOClm1ents. Such additional certificates, instrurnents and other docurnents as the Underwriter, Bond Counselor Disclosure Counsel rnay reasonably deern necessary to evidence the truth and accuracy as of the time of the Closing of the representations of the Agency herein 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 hereunder. 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 terrninated for any reason permitted by this Bond Purchase Agreernent, this Bond Purchase Agreernent shall terminate and none of the Underwriter, the Authority or the Agency shall be under further obligation hereunder, except as set forth in Section 9 hereof. 8. Certain Covenants. After the Closing: (a) the Agency will not adopt any arnendrnent of or supplernent to the Final Official Staternent 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 arnend or supplement the Final Official Staternent in order to rnake the Final Official Staternent not rnisleading in the light of the circurnstances existing at the tirne 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 nurnber of copies of an arnendrnent of or supplernent to the Final Official Staternent (in form and substance satisfactory to the Underwriter) that will arnend or supplernent the Final Official Staternent so that it will not contain an untrue statement of a rnaterial fact or ornit to state a rnaterial fact necessary in order to rnake the statements therein, in the light of the circurnstances existing at the tirne it is delivered to the Underwriter, not rnisleading; and (b) the Agency shall not knowingly take or ornit to take, as is appropriate, any action which would adversely affect the exclusion frorn gross incorne under federal tax law of the interest on the 2007 Bonds or which would cause the 2007 Bonds to becorne arbitrage bonds under Section 148 of the Code and the regnlations thereunder. 9. Exoenses. All expenses and costs of the Agency and the Authority incident to the performance of their obligations hereunder and in connection with the authorization, execution, sale and delivery of the 2007 Bonds to the Underwriter, including any printing costs, fees of the Trustee, the Dissernination Agent" fees and expenses of consultants, fees and expenses of Bond Counsel, fees and expenses of Disclosure Counsel and fees and expenses of counsel to the Agency and the City shall be paid frorn the 2007 Bond proceeds or in the event that 2007 Bonds are not issued for any reason, shall be paid by the Agency. All costs and expenses of the Underwriter, including travel, "blue shey" expenses, fees and expenses assessed upon the Underwriter with respect to the 2007 Bonds by the Municipal Securities Rulernaking Board or the National Association of Securities Dealers, CUSIP@ Service Bureau charges, CDIAC fees and advertising expenses, and any fees or expenses of counsel to the Underwriter shall be paid by the Underwriter. 10. Survival of Certain Reoresentations and ObliQ:ations. The respective agreernents, covenants, representations, warranties and other statements of the Agency and the Authority and of each of their respective officials and officers set forth in or rnade pursuant to this Bond Purchase Agreement shall survive TEMRDA BPAi.\\pd!.MC/702 13 delivery of and payrnent for the 2007 Bonds, regardless of any investigation, or staternents as to the results thereof, rnade by or on behalf of the Underwriter. 11. Notice. Any notice or other communication to be given to the Agency or the Authority under this Bond Purchase Agreernent rnay be given by delivering the sarne in writing, addressed as follows: Redeveloprnent Agency of the City of Ternecula, 43200 Business Park Drive, Temecula, California 92590, Attention: Ms. Genie Roberts, Treasurer. Any notice or other communication to be given to the Underwriter under this Bond Purchase Agreernentrnaybe given by delivering the sarne in writing to Stone & Youngberg LLc, 515 South Figneroa Street, Suite 1060, Los Angeles, California 90071-3338, Attention: Dawn Vincent. 12. Entire A!ITeement. This Bond Purchase Agreernent, when accepted by the Agency and the Authority, shall constitute the entire agreernent arnong the Agency, the Authority and the Underwriter and is rnade solely for the benefit of the Agency, the Authority 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. Countemarts. This Bond Purchase Agreernent rnay 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 constitnte but one and the sarne instrurnent. 14. Severabilitv. In case anyone or rnore 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 Agreernent shall be governed by the laws of the State applicable to contracts rnade and performed in the State. TEMRDA BPAi.\\pd!.MC/702 14 16. No Assi=ent. The rights and obligations created by this Bond Purchase Agreement shall not be subject to assignment by the Underwriter, the Authority or the 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 Narne: Shawn Nelson Title: Executive Director TEMECULA PUBLIC FINANCING AUTHORITY By Narne: Shawn Nelson Title: Executive Director EXHIBIT A REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA TEMECULA REDEVELOPMENT PROJECT NO.1 2007 TAX ALLOCATION BONDS (SUBORDINATE LIEN) MATURITY SCHEDULE Maturity Date Amount Rate Yield Price 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 8/1/2020 8/1/2021 8/1/2022 8/1/2023 8/1/2024 8/1/2025 8/1/2030 8/1/2036 8/1/2038 8/1/2038 (Escrow Term Bonds) 0/0 0/0 $ TEMRDA BPAi.\\pd!.MC/702 A-I EXHIBIT B RULE 15c2-12 CERTIFICATE ,2007 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 2007 Tax Allocation Bonds (Subordinate Lien) Ladies and Gentlemen: You have been engaged by the Redeveloprnent Agency of the City of Ternecula (the "Agency"), to act as the underwriter in connection with the sale of the Redeveloprnent Agency of the City of Ternecula Temecula Redeveloprnent Project No.1 2007 Tax Allocation Bonds (Subordinate Lien) (the "2007 Bonds") in the aggregate principal arnount of $ . For purposes of Rule 15c2-12 of the Securities and Exchange Cornrnission ("Rule 15c2-12"), the undersigned hereby certifies on behalf of the Agency that the Prelirninary Official Staternent dated , 2007, with respect to the 2007 Bonds is deerned final, in accordance with Rule 15c2-12 as of its date except for the ornission of certain rnatters which rnay be ornitted under Rule 15c2-12 (including interest rates, redernption prices and dates, ratings, and related information). Very truly yours, REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA By: Narne: Shawn Nelson Title: Executive Director TEMRDA BPAi.\\pd!.MC/702 B-1 EXHIBIT C CERTIFICATE OF FISCAL CONSlTLTANT The undersigned, partner ofHdL Coren & Cone, as Fiscal Consultant to the Redeveloprnent Agency of the City of Temecula (the "Agency"), hereby confirrns, as of the date hereof, the inforrnation set forth in its Report, dated ,2007 (the "Report"), entitled "Projected Taxable Values and Anticipated Tax Incrernent Revenues," prepared in connection with the Ternecula Redeveloprnent Project No.1 2007 Tax Allocation Bonds and certifies the following: 1. I arn an authorized officer ofHdL Coren & Cone, and as such, arn farniliar with the facts certified and arn authorized and qualified to execute this certificate. 2. In the professional experience and opinion ofHdL Coren & Cone, the assurnptions rnade in the Report are reasonable. 3. HdL Coren & Cone is not aware of any event or act which has occurred since the date of the Report which, in rny opinion, would rnaterially and adversely affect the conclusions expressed therein. 4. We hereby consent to the references to HdL Coren & Cone and to the information reproduced in the Prelirninary Official Statement and in the Official Staternent. 5. We hereby certify that as of the date of the Report and the date hereof the information relating to the Projected Taxable Values and Anticipated Tax Incrernent Revenues contained in the Official Staternent under the caption "THE REDEVELOPMENT PLAN" insofar as such staternents purport to surnrnarize portions of the Report, are accurate in all rnaterial respects and do not ornit to state a rnaterial fact necessary in order to rnake the staternents contained therein, in the light of the circurnstances under which they are rnade, not rnisleading and no events or occurrences have been ascertained by HdL Coren & Cone or have corne to its attention that would substantially adversely change the opinions set forth in the Report. We note that in rnaking the foregoing staternents that HdL Coren & Cone has undertaken no additional research with respect to the Agency or the Project Area. The Agency and Stone & Youngberg LLC are entitled to rely on this Certificate. Dated: ,2007 HdL COREN & CONE By TEMRDA BPAi.\\pd!.MC/702 C-l DEPARTMENTAL REPORTS Ii - I. ITEM NO. 17 I I Approvals City Attorney Director of Finance City Manager ~ /ill (J(L, CITY OF TEMECULA AGENDA REPORT TO: City Manager/City Council FROM: Aaron Adams, Assistant City Manager DATE: September 25, 2007 SUBJECT: Economic Development Department Report for the Month of August 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 August 2007. ECONOMIC DEVELOPMENT BUSINESS RETENTION On August 23,d, Council Member Roberts, staff, and Chamber representatives attended a site visit with Neil Allen of Solid State Stamping. Mr. Allen gave an overview of the company and provided a tour of their facility. As a follow-up to the site visit, staff provided contact information on Southern California Edison and information on the Virtual Job Fair which will be hosted by the Southwest California Economic Alliance. EVENTS Staff attended the Susan G. Komen for the Cure Inland Empire Open House on August 21". Their office in Murrieta was recently remodeled. Staff met the Komen Board of Directors and Executive Director and talked about the upcoming Temecula Komen event. Mayor Washington spoke at the Concordia Press Conference which was held on August 27th. Council Member Edwards, staff, Concordia representatives and press were present. Concordia announced that they will offer four-year degree programs at its Temecula campus starting next fall. The university signed a 15-year lease to continue operating out of its campus on Single Oak Drive. Staff worked with graphic designer Mark Fisher on creating the City's sponsorship ad for the Temecula Valley International Film & Music Festival event program. Staff prepared a staff report and agreement for economic funding for the Temecula Fall Rod Run which will be held in Old Town Temecula in October. The City of Temecula is sponsoring the upcoming National Association of Industrial and Office Properties (NAIOP) Bus Tour which will be held at South Coast Resort & Winery on September 27'h On August 6'h staff met with event organizers Jon and Jane Laskin to discuss the 2007 Temecula International Jazz Festival which was held in Old Town in July. On August 29'h, staff attended the West Point Business Center Tour. The new Class "A" Business Park is located at the southeast corner of Roick Drive & Via Industria. The development consists of 12 office buildings ranging from 3,000 - 6,900 square feet. The campus environment offers lush landscaping, a water feature, outdoor seating, trellises, and connecting walkways. Staff attended the Temecula Film Festival Media Preview Night which was held on August 16'h MEDIA/OUTREACH MATERIALS Staff and Isaac Lizaragga, President of the Temecula Auto Dealers Assoc., prepared the Temecula Auto Mall article for the October issue of the Temecula Chamber newsletter. The article highlights the auto dealers, their community involvement and their strong revenues that help provide city services to the community. During the month of August, Mayor Washington and staff met with the video production agency to discuss the video production for the first Temecula Outreach Program. MEETINGS On August 7'h, Council Members Roberts and Comerchero and staff attended a meeting regarding the French Valley Parkway Interchange. Also in attendance was Congressman Issa, Assembly Member Jeffries, Supervisor Stone and representatives from Cal Trans, Federal Highways and the City of Murrieta. It was a very productive meeting with good support from so many different levels of government working towards a common goal. The group will continue to meet every month to see this project through to completion. On August 13'h, Council Member Edwards and staff met with Dr. Barbara Howard, Director of Concordia University, regarding expanding their Temecula campus at the Rancho Sports Center. On August 16'h, Council Member Edwards and staff met with a private University to discuss opening up a Temecula campus. On August 15th, Council Member Roberts and staff met with Alex Benes, Director of Marketing & Communications of Wood Ranch BBQ & Grill. Staff provided information on Temecula and potential restaurant sites and also provided a tour. Staff continues to work with several high end luxury car dealers in an effort to further develop and expand within the City of Temecula On August 22nd, the Southwest California Economic Alliance Board Meeting was held at Temecula City Hall. Items discussed included reviewing the Alliance By-Laws, Work Plan addition, sponsorships and an update on the Virtual Job Fair, and Soaring Dimensions. On August 23'd, staff met with Group One Productions regarding opportunities and contacts for the City of Temecula to pursue in regards to international trade with China and India. On August 29'h staff met with a prospective developer proposing a family-oriented entertainment center including a bowling alley. In August, staff reviewed five consultant submittals that responded to the Economic Development Strategic Plan RFQs. Consultant interviews were scheduled for September. ATTACHMENTS: Temecula Valley Chamber of Commerce Activities Report Temecula Valley Convention & Visitors Bureau Activities Report Southwest California Economic Alliance Activities Report OLEAD1NG THE WAY 26790 Ynez Court Suite A, Temecu/o, CA 9259/ P: 95/.676.5090 F: 95/.694.020/ www.temecula.arg info@temecula.arg September 12, 2007 Shawn Nelson, City Manager City of Temecula 43200 Business Park Drive Temecula, CA 92590 Dear Shawn, Attached please find the August Monthly Activity Report as per our contract with the City of Temecula. Chamber staff assisted 7 businesses interested in relocating to Temecula. This is the month of August at a glance: . The Temecula Valley Chamber of Commerce 2007 Legislative Summit is scheduled for October 2, 2007. . Guest Speakers: . Assemblymember Kevin Jeffries . David Crane, Special Advisor to the Governor on Job & Economic Growth . Richard Harmon, Deputy Director of Legislative Affairs for Cal Trans . Randy Record, Board of Director, Eastern Municipal Water District . Amy Minniear, Pechanga Development Corporation . TVCC Board has approved receiving a proposal for a five year Strategic Planning Consultant Firm. The Board selected SMG "The Strategic Marketing Group" who will assist in the planning process to help the organization refine and re-invent core services and activities designed to better serve the community and it's members. . The Board has approved a China Trip partnership for members, family and the entire community scheduled for March 2008. Currently there have been 215 persons interested in the China Trip program. . Chamber staff is currently reviewing an insurance plan that may benefit businesses. Business Development Resource Committee: The Chamber Spotlight winner for August was Dr. T's Mobile Vet Clinic. The Mystery Shopper winner for the month was Specially Retailers. August's Volunteer Businesses' of the Month were Chris Baily of Baily's Front Street Bar & Grill and Doug Leiber with Temecula Creek Inn. The Business Success Forum was on Tuesday, August 14, at 12pm. The topic of discussion was Human Resources. Membership & Marketing Committee: 37 businesses joined the Chamber in the month of August and 113 renewed their membership. Staff and Ambassadors attended 9 Ribbon Cutting events in August. The Networking Breakfast, held at BJ's Restaurant, was attended by 75 members and guests. The August Mixer was hosted by Southwest Riverside County Boys and Girls Club - Great Oak location and was attended by approximately 300 members and guests. 34 members participated in the August - 5 Minute Networking event held at Weins Family Cellars. Additional welcome visits were made to new businesses by Chamber CEO, staff and Ambassadors. Southwest California Legislative Council: The council recently sent a letter to the Inland Empire Caucus commending the legislators for continuing to meet on a regular basis. An E-Alert was sent to members of all three chambers informing them of the SWCLC's opposition to AB8 and urged them to take action and forward letters stating their position. The council also took a position in opposition to S8942 which would reverse progress to workers' compensation reform and possibly increase insurance costs. A speaker from the Metropolitan Water District will be present at the September meeting to address issues relating to water supply and the deltas. Special Events Committee: The 2007 Monte Carlo Extravaganza is set to take place on Wednesday, September 19th at Wilson Creek Winery. Harrah's Rincon Casino & Resort is the event's Title Sponsor. Toyota of Temecula Valley is this year's $1500 Cash Prize Sponsor. The evening will include Las Vegas style gaming, food from local restaurants and great entertainment courtesy of Timmy D. Productions. Tickets for the event are now available at the Chamber for $25 pre-sale or $30 at the door. The 2007 Legislative Summit will take place on Tuesday, October 2nd at Pechanga Resort & Casino. Dan Walters will be the event moderator again this year. The committee has secured the following panelists for this year's event: David Crane with the Governors office, Assembly Member Kevin Jefferies and Amy Minniear with Pechanga Development Corporation, Deputy Director of Legislative Affairs for CalTrans, Richard Harmon and Randy Record Board Member of Eastern Municipal Water District. The 16'h Annual Business & Technology Expo will be held Wednesday, October 17'h at Pechanga Resort & Casino. This year's event will include a Technology Expo portion. The expo will take place between the hours of 5:00 p.m. to 8:00 p.m. City/Chamber Retention Visits: Alice Sullivan, President/CEO attended the Bostic Inc. retention visit and Kimberly Uhler attended the Solid State visit. Tourism Highlights (Bulk brochure distributors) Activity Report: . 75 street maps and visitor guides were given to Century 21 for potential clients. . 250 street maps were given to the City of Temecula. . 15 street maps and 30 membership directories were given to Camp Pendleton for family orientation. . 300 Visitor guides and tourism maps were given to Imani Temple of Temecuia for a state women's convention at the church. Also, attached are the meeting minutes for the Business Development Resource, Special Events, Southwest Legislative Council, and Membership committees. If you have any questions regarding this information, please call me at (951) 676-5090 or e-mail asullivanavtemecula.oro. Thank you. cc: Mayor Chuck Washington Mayor Pro Tem Mike Naggar Councilman Ron Roberts Councilman Jeff Comerchero Shawn Nelson, City Manager Councilwoman Maryann Edwards Grant Yates, Deputy City Manager TYCC Board of Directors Aaron Adam, Assistant City Manager Gloria Wolnick, Marketing Coordinator Bob Johnson, Assistant City Manager/CD Director Temecula Valley Chamber of Commerce Monthly Activity Report August 2007 Chamber Year-To-Date PHONE CALLS This Month Total TOURISM Tourism Referrals 307 2,228 Calendar of Events 198 1,384 Special Events 287 1,640 General Information 1,304 15,818 TOTAL TOURISM CALLS 2,096 21,070 Reiocation 198 947 Demographics 175 1,060 Chamber 654 5,838 Miscellaneous 527 4,404 TOTAL PHONE CALLS 1,554 33,319 WALK-INS Tourism 239 1,493 Calendar of Events 162 916 Special Events 183 755 General Information 1,133 12,712 Relocation 197 1,139 Demographics 195 960 Chamber 369 4,351 Miscellaneous 382 3,241 TOTAL WALK-INS 2,860 25,567 MAILINGS Tourism 1,328 9,485 Relocation 43 1,662 Demographics 126 856 TOTAL MAILINGS 1,497 12,003 E-MAIL Tourism 118 608 Relocation 98 518 Miscellaneous 189 1,686 TOTAL E-MAIL 405 2,812 WEB PAGE USER SESSIONS 18,054 132,078 GRAND TOTALS This Month Year-To-Date PHONE CALLS 3,650 32,894 WALK-INS 2,860 25,257 MAILINGS 1,497 12,003 E-MAIL 405 2,812 WEB PAGE USER SESSIONS 18,054 96,726 Annual Volume Comparisons Chamber Chamber Percentage August 2006 August 2007 PHONE CALLS TOURISM Tourism Referrals 204 307 50% Calendar of Events 143 198 38% Special Events 163 287 76% General Information 2,210 1,304 -41% TOTAL TOURISM CALLS 3,326 2,096 -37% Relocation 103 198 92% Demographics 80 175 119% Chamber 495 654 32% Miscellaneous 416 527 27% TOTAL PHONE CALLS 1,094 1,554 42% WALK-INS Tourism 150 239 59% Calendar of Events 118 162 37% Special Events 100 183 83% General Information 1,773 1,133 -36% Relocation 60 197 228% Demographics 35 195 457% Chamber 317 369 16% Miscellaneous 310 382 23% Visitor Center Walk-Ins TOTAL WALK-INS 2,863 2,860 0% MAILINGS Tourism 698 1,328 90% Relocation 24 43 79% Demographics 16 126 688% TOTAL MAILINGS 738 1,497 103% E-MAIL Tourism 82 118 44% Relocation 13 98 654% Miscellaneous 168 189 13% TOTAL E-MAIL 91 405 345% WEBSITE USER SESSIONS 6,224 18,054 190% . Chamber referrals reflect faxes, walk-ins and phone calls TEMECULA./.. VA~~EY Cl::IAMB E R ;ZZ:;!j;!:;:",;gCJF' COMMERCE "LEADING THE WAY' Temecula Valley Chamber of Commerce Special Events Committee Update August 2007 2007 Monte Carlo Extravaganza This year's Monte Carlo Extravaganza is scheduled for Wednesday, September 19th at Wilson Creek Winery. Harrah's Rincon Casino & Resort is the event Title Sponsor. Toyota of Temecula Valley is the $1500 Cash Prize Sponsor. To date, (4) Craps Tables, (2) Texas Hold 'Em, (6) Poker Tables and (14) Table Sponsorships have been secured. Additional sponsorships are still ayailable. Currently we have sold 178 tickets. Tickets are $25 pre-sale and $30 at the door. Creative Balloons & Design has agreed to donate balloon decorations for the event. The following restaurants will be at the event providing food samples: Costco, Ernie B' s, Espresso Chauffeur, Harrah's Cabana Cove, Hometown Buffet, Qdoba Mexican Grill, Taps Fish House & Brewery, Temecula McDonald's and The Barley House West, Inc, 2007 Legislative Summit The 2007 Legislative Summit will take place Tuesday, October 2nd at Pechanga Resort & Casino. The committee is working with Don McAuliffe with Parallax Communications to market the event to a larger area. Don has agreed to write a press release on the event and send it out via Prime News Wire. The committee created a survey and sent it out to the Chamber membership. Based on the results the important topics included: Transportation, Water, Energy and Business & Economic Development. Confirmed panelists to date are: Amy Minniear with Pechanga Development Corporation, Assembly Member Kevin Jefferies, David Crane with the Govemor's office, Richard Harmon, Deputy Director of Legislatiye Affairs for CalTrans and Randy Record, Board Member with Eastern Municipal Water District. The next committee meeting will be Thursday, September 13th at 10:00 a.m. Business & Technologv EXDO This year's Business & Technology Expo is set to take place Wednesday, October 17th at Pechanga Resort & Casino from 5:00p.m. - 8:00p.m. The eyent takes the place of our October Mixer. Community Little Book is the events Title Sponsor. Booths are available for both Member and Non-Member Businesses to purchase. The committee is currently working on confirming speakers for the Tech Expo portion of the event. The event will feature three to four 20 minute seminars on the latest technology trends/solutions for your business. The next committee meeting has been scheduled for Tuesday, September 25th at 9:00 a.m. SOUTHWEST CALIFORNIA LEGISLATIVE COUNCIL www.southwestcaliforniaadvocacv.biz Temecula Valley Chamber of Commerce Lake Elsinore Chamber of Commerce Murrieta Chamber of Commerce AUlmst 2007 SWCLC Meeting Minutes Southwest California Legislative Council A Joint Committee ofTemecu1a, Lake Elsinore and Murrieta Chambers of Commerce Meeting Minutes Monday, August 20, 2007 2006 Chair: Joan Sparkman (Present) 2007 Chair: Dennis Frank (PresenQ Chamber Advocacy: Jeremy Harris Directors Present: Karen Wikert, Roger Ziemer, Amber Wiens- Starbuck, Greg Morrison, Dr. Billie Blair, Scott Crane Directors Absent: Gene Wunderlich, Carl JoImson, Amy Minniear, Isaac Lizarraga, Glen Daigle Members Present: Jeff Greene-Office of Jefferies, Kari Reufher-Granite Construction Doug OBerhen, Megan Reed, Mindy Zink, Tamara Midd1ecamp, Norma Arias-Lee, Eva Tapia Staff: Laura Turnbow, Rex Oliver, Rosalie Roberts, Kim Cousin Meeting called to order at 12:05pm Chair's Report . Inland Ernpire Legislative Caucus-Sample letter on our Web-Site This is a very important item to us. Press releases attached to fhe Agenda. . Recent Press Releases-Will have more up dates on the Web-Site Agenda 1. Approval ofJuly 2007 Minutes-Motion made, seconded and carried. 2. 2008 Propositions-Early enough to promote. Reviewed this item. Take some tirne to act on this. Workers' Cornpensation-Reviewed, try again, will have rnore information later. Redistricting-Continue to follow this. Erninent Domain-Continue to follow fhis. Internet Poker-Tracking this. Tangible Ballots-Paper print out. 3 Legislative Report #6-0utlined some highlights. CA AB 437-0pposed CA AB 1065- Snspended Failed Bills and two year Bills-Will continue to update. H.R. 31 (Issa)-Water District. Drought issues. Different agencies are doing their part. Schools, Parks, and Cemeteries are some ofthe big users of water. 14 million requested from Federal Funding Greg Morrison has to abstain from voting. Recommended Position-Support (I) Evita Tapia-Assemblyman-Benoit's Office Back in Sacramento-Budget issues, nothing happening (2) Jeff Greene-Assemblyman Jeffrie's Office Open House-Thank you the turnout Back in Sacramento-Budget-Nothing happening Totals for Bills-275 Senate Bills-Outstanding 562 Assembly Bills-Outstanding (3) Norma Arias-Lee Municipal Water District-Delta water supply issues (4) Megan Reed-Rancho Water-Talking about cutting Agriculture water by 30% October 24th-I-215 Summit- Comment from Amber Wiens-Starbuck Meeting was adjourned at 12:34pm Next meeting will be Monday, September 17, 2007 at 12:00noon TEMECULA-/ V~~:~,~;~~ER "LEADING THE WAY" Membership Meeting Minutes Wednesday, August 8, 2007 - 8:00a.m. -9:00a.m. Chamber Conference Room Sponsored by Community Little Book 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-Chairs: Jann Gentry Adam Ruiz Julie Ngo Board Liaisons: Tony Berardino Committee Present: Jann Gentry, Lee McCollum, Dan Brunell, Adam Ruiz, Julie Ngo, Judy Remsen, Tony Berardino, Lainie Goldstein, Young PiI Oh, Scott Crane, Jami McNees Staff Present: Kimberly Freize-Uhler, Katie Edmonds and Alice Sullivan Minutes Committee Chair called the meeting to order at 8:01a.m. Self-introductions of the committee followed. The minutes of the previous meeting were reviewed and motioned for approval by Judy Remsen and seconded by Julie Ngo, which carried. Miscellaneous Open Discussion by Committee: Staff gave an update on the newly formed women in business group "TVCC Women in Business Advocates" and relayed the details of the first event to be held on October 30. It will be a lunchtime event with an expo component as well. The topic of the first event will be "Simple Solutions in a Stressed-out World" Sub-Committee Reports Welcome & Retention By Julie Ngo Ngo reported the welcome committee is making their scheduled calls to the new members. The calls all seem to be going well with the 4th month calls proving to be the most difficult. It is harder to get in touch the members during the 4th month calls. Jamie McNees and Lee McCollum III volunteered to join the committee. Networkina Breakfast. Networkina Luncheon. Mixers and 5 Minute Networkina:, By Adam Ruiz: Ruiz reported the Breakfast is going very well and that the 2008 dates have been presented to BJ's to confirm. Positive feedback was shared with the committee about the new aspect of the breakfast of recognizing first time members. The Networking Luncheon was attended by 75 members and Ruiz thanked the luncheon sponsors Cornerstone E&S Insurance and Strachota Insurance. Ruiz Announced the next 5 Minute Networking Event would be on Thursday, August gth at the Wiens Family Cellars. The 5 Minute Event will continue to be held at different Wineries to showcase Wine Country. The September event will be held at Ponte Family Estate Winery. It was discussed the waiting list for Mixer hosts is about 2 years long. Other opportunities for hosting events are being considered and include the New Member Reception and Power Networking Workshop. Power Networkina Workshop: By Staff: The new format for the workshop has been very successful. It was reported at the last workshop three representatives from Pechanga attended and ended up meeting a photographer who was attending that was able to do their employee badges. Looking for a lunch sponsor for the event. A special thanks was given to all of the Ambassadors who have participated as a presenter for the workshops. Mixer: By Staff: August Mixer will be held at the Boys & Girls Club Great Oak Location. Ambassador Proaram: By Jann Gentry-Sub Committee Chair: Gentry mentioned there are approximately 65 Ambassadors to date our goai for the Chamber is to have 70 Ambassadors by the end of 2007. The next Ambassador Training is scheduled for August 30th, after this training we should be close to gO Ambassadors. The Ribbon Cutting calendar will now be sent out covering a 2 week period of time to help with scheduling and attendance to the ribbon cuttings. Gentry announced Jackie Steed won the June-July Ambassador contest - way to go Jackie! Another contest will likely start this fall. Gentry thanked Windermere Real Estate and Jan Swanson for hosting the July Ambassador Workshop, the event was well attended and up-to-date information was shared on the Chamber events. Citv of Temecula Report: By Alice Sullivan: Sullivan reported the City of Temecula's new Chief of Police is Jerry Williams. The Chamber is on the August 14th agenda at City Council for its' annual funding. Hosoital Reoort: By Scott Crane Crane reported the proposed hospital is on track and should be in front of the planning Commission by October and the City Council in December with the new EIR reports. They are anticipating the permit from the state and the approval from the city should come together at the same time, allowing the grading to begin sometime 1" qtr. 2008. Board Reoort: By Tony Berardino: Berardino reported the board approved the development of a new 5 year strategic plan for the chamber. Bostik renewed their membership, and Chamber staff met with Southwest Traders about rejoining the chamber. The CVB will be relocating to the suite next door to the large conference room. The new chamber website is under construction. It was reported the chamber staff and members who are familiar with healthcare insurance will be reviewing a proposal for health insurance for chamber members. QDen Discussion: The Ribbon Cuttings and upcoming events were discussed. The Legislative Summit on October 2nd was reviewed. Ngo reported the Old Town Merchant Association and the Farmers Market are exploring ways to work together to keep the Farmers Market and Old Town Merchants an attraction to all consumers. Ngo reported Rancho Damacitas is working on a project to help the children at Rancho Damacitas have the necessary supplies to start school gracefully this school year. Meeting adjourned: 9:00am - Thank you for your attendance. TEMECULA..' VA~fEY CHAMB ER '" _.",,"";'_".-DdF COMMERCE 'LEADING THE WAY" Business Development Resource Committee MEETING MINUTES Wednesday, August 15, @ 8:00am TVee Conference Room Sponsored by Community Little Book Committee Chair: Ginny Mulhern (present) Co-Chair: Barak Berlin (present) Board Liaison: Bill Seltzer (present) & Karen Roberts (present) Members Present: Michelle Deskin, Lucy Ruduicke, Mary Ellen Gibson, Cathy Lester, Mindy Zink, Sam Kleinschmidt, Laura Bruno Staff Present: Emily Pulley, Alice Sullivan A'loroval of Minute,! July minutes approved Member Reco9!lition Proaram for Seotember MYSTERY SHOPPER Robert Evancik R.E.E. Air Conditioning and Heating 28373 Felix Valdez Ste A-2 T emecuia CA 92590 Nottingham & Doherty, Certified Public Accountants Jody Nottingham 41765 Rider Way #B Temecula, CA 92590 VOLUNTEER - SPECIAL EVENTS Blood Bank of San Bemardino Lynn Effinger 384 West Orange Show Road San Bernardino, CA 92408 Spotlight The Beauty Studio Patricia Eggers 33353 State Hwy 79S, Ste 1020 Temecula, CA 92592 Business Success Forum The August topic was Human ResourceslPersonnel. It was an informative meet. The September forum is a special presentation by the SBDC on Marketing Communications. Partners in Learnino, The program was explained to new members to the committee. Every one was asked to talk to 5 people at the mixer tonight about Partners in Leaming. Seltzer reported that Janet Beck, on the executive chamber board donated $!OO. Board Update A. Business Mixer, TONIGHT, August 15, Boys & Girls Club B. Networking Breakfast, Wednesday, August 22, from 7:30 to 9:30am, BJ's Restaurant. C. 5 Minute Networking - Thursday, Sept 13, Ponte Family Cellars, Must register, cail Membership. D. Monte Carlo - Wednesday, September 19 -tickets on sale E. Legislative Summit - October 2, sponsorships available F. Business & Technology Expo - October 17, booths available G. Chamber Trip to China - 9 days all inclusive, $1499, everyone welcome Committee Uodates o Michelle Deskin reported that Expo planning was going well. o Ginny confirmed the two paid seminars: oWes Schaeffer - Prospecting to Fill the Pipeline. Tuesday, Oct 23, 3:30-5:30pm $49 per person o Laura Bruno - Promoting & Protecting Your #1 Marketing Asset - Your Chamber. Friday, November 30, 9:30-12 noon. $25 per person. 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"_ eo TVCVB Online Booking Report-YTD May 2005 - August 2007 August Rooms Booked = 93 T""l't1d'("-...khD.~~<=1 1~1 Sou!h{'oostWin..:o ~-~~ '1 Ilo~_.~. r 'ifJrW: - 1""i ~~ 115 R...."d.Jm. ~ _ Jm;i~ ~ 1<)3 Pffh"..",,~103 poI.IIr...a...rt , .5 Pobr.'".mo i1 " Jfcdidorfu..P''1''..... ~- _ _ :::;'1/"''',1 6~ ~ ',-,M il!!iii!i!ilil ' HomptoD.lIw,~SuiffS Ihtmlled8t>:,'Alu<ri{~ :i",h~'Suil" ~~r;or-i~ J ~1~2 _J I J i!I , b -i ~- .'~1. , .25-1 e...uortllinr.....ml. e.n>f..tr....Mi.nJ"iet>l C.sdoC..... E....,WomcI1F,.m"..,ol,; B....'\""'..-nI........1llio 'p..), 'ir/i'Il!166 " 100 HO 200 R(lorn NlghfsBool,tMl pt'l>H<>tl'1 2!'0 ", TVCVB Online Booking Revenue May 2005 - August 2007 Revenue By Year/Month: -~ r $56,152 , r--7:;'~:~ 711I100. ! 6UUQU . '----- ::::: .1- JOOOO ..1= '''''0. ] )1)":] g ~. IWLttI _2005':2006 ...,.. ~ ~ ~ ~ ~ o(~ ~, = . ~. ~. 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CD a.. 0;:' !!a. 0 ACOo..lll!:. --Ul III < ::l co -. ca ;::+ !:!? a.. :::!: o " 3 0 -n0S;:S;:~ CD ^"lll -'0 Ul ill :j" g. 3 55" CD cO' 3 ~ Ol rs;:-oooo )>co::Jffi"1ll Ul 0 ..... :::J Jl>~coo )> x' 3 roO NO", ao t)>zOJO _:::::!.co 0 0 ~.~ ::: ~ ~ ;:';:,c....Olll lll~;:,:s: en 1O 1O en '< Ol )> c (Q c VI ~ N C C ..... s: o :s ~ :;y .c: )> n ~ ;C' =: '< :0 Cll "C o ::l- - o ... -l Cll 3 Cll n c or < !!!. iD '< < iii' =: o ... en o Cll " ~ Cll ~ __q,.,~_~ c, '-" Temecula Valley International Film & Music Festival Event Promotions .. _lUlllIO:.UI_ -,~ II...... -~ ~-~ r..o-__......__1!6o ::-.=i':.t,=:2:'=t..'= __01__ . -- ....'~ II....... -- ...---....... ..I"_._~_- -.-...""'-...- --""'....--.. - WI'O_~r::'~~IH';'~ _...._cO.......... ._"".......~pd.I.- Marketing & Advertising Southwest Airlines- Featured Destination Ad For the 2nd time, the CVB marketed the Temecula Valley through a Southwest Airlines 7 -day website promotion. The ad showcasedou, feature-rich destination by highlight- ing special airfare rates starting at $59 one way via Ontario and San Diego Intemational airports, dis- counted room rates, value-added car rentals and the many fun things to see and do in the Temecula Valley. Our first campaign in March 2007 had over 6 million people exposed to our city via the Click 'n Save emall, with 3,799 incremental passengers booking airfare and traveling by Au- gust 24th. The July 2007 campaign had over 6.2 million viewers, booking an incredible 18,204 reservations. The national average spending per person, per day is $127, so if 18,204 passengers spent the national aver- The CVB is conducting a 3-part mar- keting process to promote the Film Festival and increase room night bookings for the TID hotels. Custom invitations were sent to 1,000 atten- dees. First, to producers and direc- tors for day activities. Second, to international film-makers to extend their stays to 5-7 nights. And third, to help promote two tours. A site tour in partnership with the Inland Empire Film Commission to assist producers and directors with scout- ing opportunities that will be offered Thursday, September 13th from 11am-4pm for up to 112 partici- pants, as well as a wine tasting tour for attendees to get a taste of the age, that could result in $2,311,908 in direct visitor spending per day within our community. The average increase for all hotel bookings via southwest.com into Temecula was over 255%. Fall Rod Run Promotions- The CVB is supporting the Fall Rod Run this year by performing a 2,000- piece direct mail initiative. We are focusing on existing events by generating extended stay opportunities for visitors from out- side the area. Temecula Wine Country on Fri- day, September 14th from 11am- 4pm for up to 112 attendees. The CVB will also host the VIP Hospi- tality Suite for the festival from Wednesday, September 12th- Sunday, September 16th. Staff and volunteers will be on hand to en- sure the visiting guests have all the information they need regarding our region. On Thursday, August 16th, the CVB participated in the festival's Media Event at Temecula Creek Inn. Staff was present to answer tourism questions, distrib- ute media kits and support the Film Festival in their marketing efforts. SportsTravel Magazine- Capturing the sports market is one of our target goals in order to increase midweek room nights. This magazine serves the sports-related travel and event industry. It is the only publication written and designed to serve the people who organ- ize and manage sporting events of all types and levels. This publication is read by more than 16,000 industry decision makers and should allow the CVB to get in front of those individuals who have the potential to book ideal business for our region. Walk Ins................. ...1,897 Room Night Bookin:gs.............. ...93 Phone Calls............... .1,466 Media Inquiries..................... .....22 EmailRequests.......... ....322 FAM Tours/Trade shows........... ...1 Mail Orders. ............. ...1,274 Events & Festivals............. ...... .....2 Marketed Events.................... .282 AUGUST 2007 HIGHLIGHTS California Travel Research California Hotel Occupancy and Room Rates (July 2007) _ California hotel occupancy slipped in July. averaging 76.5% statewide, down 1% below 2006. Room rates were 6.9% above July of last year. -Source: Smith Travel Research, CA Lodging Industry Performance, August 2007. Overseas & Mexican Visitors to California, Full Report 2006 now available - Highlights as reported last month: Approximately 4.6 million overseas visitors (21.3%) indicated California was a destination on their U.S. trip in 2006, down 3.7% from the 4.8 million overseas visitors to California in 2005. Source: CIC Research Inc., Augus12007. California Domestic Travel Report, 2006 Executive Summary - The following excerpts are from newly received 2006 domestic visitor volume, market share, and trip characteristics from O.K. Shifflet & Associates: . California's share of the U.S. domestic travel market increased for the fourth consecutive year. California's market share not only increased, but also increased by a significant margin - jumping from 11.09% in 2005 to 11.50% in 2006 - representing the largest gain among the 50 states. . The 2006 travel year established another record for California's travel and tourism industry. California hosted an estimated 352.3 million visitors in 2006, representing a 5.1% increase over the 335.4 million U.S. residents that visited California in 2005. · California maintained it's ranking as the top destination in the U.S. in tenns of person-stays market share and number of visitors. · Both leisure and business travel to California positively affected total travel volume in 2006. Leisure visitation increased 5.0% compared to 2005, while business travel grew 5.3% .. marking the third consecutive annual increase. Califomia leisure visitors totaled 256.4 million in 2006 and business visitors totaled 95.9 million - both setting new record highs for California. Resident leisure travel was the primary driver behind the in.state gain, increasing by 7.7% over 2005's total of 279.8. Out-of-state travel to California declined from 55.5 million in 2005 to an estimated 53.3 million in 2006 - the first such decline in recent years. The decline was driven by a 9.6% drop in non-resident leisure travel (Numbers are preliminary pending publication of the full report in early or mid.September). -Source: O.K. Shifflet & Associates, Ltd., August 2007. Cultural Tourism Resource - The online database of the Centre for Cultural Policy Research (CCPR) at the University of Glascow, Scotland, is de- signed to assist those working or researching in the arts, culture and major events. Research themes include studies on the social and economic effects of: arts and culture; arts, culture and education; arts, culture and inclusion; arts and health; arts, culture and audience development; arts, culture and the economy; cultural tourism; major cultural events; and major sporting events, with an emphasis on research published since 2000. Family Travel Study - A new study by Harris Interactive commissioned by Best Western International finds that today's family vacations are shorter yet more elaborate and expensive, involving journeys to farther--particular1y exotic--Iocations than what most people remember from their childhood, accord- ing to a new survey. Travelers are more likely to include pets in their trips over grandparents, aunts, uncles and cousins. Eighty-eight percent of U.S. adults who take family vacations indicated that a getaway these days is different from when they were children. More than half (55%) claimed that today's vacations are more expensive, while just over two-fifths (42%) said they now travel greater distances. -Source: Best Western International, 8/1612007 Vacation Breaks Getting Shorter - The leisurely summer vacation--long considered a chance for employees to break away from work for at least a full week, if not two--has fallen out of favor. Instead, says The Wall Street Joumal, drawing from Expedia.com's annual Vacation Deprivation Study, many people are opting to break their vacation time into long weekends, according to researchers who track vacation patterns. Some employees are even combining their vacations with two- to three-day business trips to avojljf being away from work at all. The study finds that earned vacation time often goes unused. Despite earning the least amount of annual vacation days, AKlericans will leave an average of 3 days unused-totaling more than 439 million in 2007. The trend has picked up as the work force has grown leaner. Another factor is the growth in the number of dual-income couples, which has made it harder for people to coordinate their vacations. -Sources: E>:pediarom; Wall StreetJoumal, p.Dt, August 15, 2007 Here We Grow... Come see us in our new office space! In August, the CVB moved into the suite directly across the from Chamber's Courtyard, Suite B. We now have adequate space to op- erate and offer a reception/iobby area of our own. If you are a member of the TVCVB, please feel free to drop by and bring your collateral. Hours of operation will be Mon- day-Friday from 9am-Spm. Look for an invitation to our Open House on Tuesday, December 4th at lOam. Branding Discovery Meeting In order to achieve strategic positioning and over- all brand recognition, the TVCVB, along with Miriello Grafico, will be conducting a Brand Discov- ery Meeting on Wednesday, September 19th. Se- lected individuals will meet to identify the key components needed to launch a successful brand identity campaign. The end result will yield a new TVCVB identity, a style guide, new broadcast pro- duction/media placement and measurements. Lake Elsinore Temecula ~ County ofRiveJ:side TO: Sarah Mundy Deputy Director Riverside County EDA Aaron Adams Assistant City Manager City of Temecula Ron Bradley City Manager City of Murrieta Cathy Barrozo Analyst City of Lake Elsinore FROM: Stevie Field Executive Director DATE: September 15, 2007 SUBJECT: SOUTHWEST CALIFORNIA MONTHLY MARKETING UPDATE -"n' .".,......................."..".",.,,, 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 August, eight contacts were made to our office for information. As summer as come to a close, April and I wili be working diligently over the next 30 days to reconnect with leads that have gone cold. Web-site/GIS During August, we had 8,945 visitors to our website. Augusts' visitor total was down slightly from July, however, I am confident that this is due to so many people being on vacation and taking time off from work. I am reviewing the website now for its annual update. If you have any recommended changes/deletions/additions, please feel free to let me know. Incorooration/Bvlaws We stili need formal approval of the Bylaws. I have emailed the latest Bylaws version to each Partner and have provided packets to two of the Partners with a check-off list of what has been completed in the incorporation process, which I have included below. I hope that we can adopt these bylaws at the end of September. Articles of Incorporation Registration of Business Name - Filed and granted by the Secretary of State Employer Identification Number - Approved and assigned County of Riverside Business Registration - Approved By-Laws - Corporate Bank Account - Waiting for Board approval Mission Oaks National Bank 501 (c) (6) application - In process Payroll Service - Paychex Paychex Hartford (through Paychex) Workmans Comp Ins. Business Liability Ins. Soarina Dimensions The Soaring Dimensions was delivered to my office and I will drop a supply off to each Partner this week. Virtual Job Fair/Job Database Our first Virtual Job Fair will be held on Oct. 21 - 28, 2007. We have changed the dates as the PE and the Californian were both hosting job fairs around the same time. We have also discovered that the employers are pleased with the time extension so that they can play around on the site for a little longer before making a decision. The fair will be located at www.stoD\(ourcommutina.com.. To recap on the exhibitor levels and fair information: we will offer three levels for exhibitors. The Elite Exhibitor level will be $5,000 and we will have five (5) spaces, the Premiere level will have seven (7) opportunities at $1,500 each and the standard exhibitor fee, of which there will be unlimited openings, is $500. Each exhibitor will be able to list all of their openings during their fair and then all job opportunities will be transferred to the Alliance job database. Each exhibitor will be provided a visitor counter so that they can see how many applicants visited their booth and all resumes that are submitted will go directly to the company. The Alliance will also have a master database which will "house" all resumes filled out by applicants. The resume form will be standard and will be the same for everyone, meaning the applicant will not be able to "cut and paste" their own resume, they will have to use the format provided. Visitors (or applicants), will be able to search by company or by job title. Companies that are the second tier or Premier exhibitors will have their opportunities displayed first. All Premier exhibitors will have their logos included on marketing pieces. We will also have the ability to email all exhibitors and inform them of upcoming fairs as well as find out if our fair was successful for them. At the end of the fair, I will provide a report to the Partners with total visitor count, total monies generated and total cost of the fair. The first fair will be the most expensive because of the building of the infrastructure. Depending on its success and employer need, it is my hope that we will host this show two - four times a year. This is a complex project and there is a lot of information associated with it. I will be happy to meet with you and/or your Councils or sub-committees to review the fair in its entirety. Trade shows/conferences On behalf of the Alliance, I will be attending the following trade shows/conferences: International Economic Development Council (IEDC) (TBD) National Association of Manufacturing (NAM) Industrial Asset Management Council (IAMC) Corporate Office & Real Estate Network (CoreNet) Scottsdale, AZ Chicago, IL St. Louis, MO Atlanta, GA Sept. 16-19 Sept. 23 - 26 Oct. 7-10 Oct. 27 - 31 If you need any additional information or have any questions, please contact me on my cell at (951) 236.2036. Sincerely, Stevie Field Executive Director Copy: Robert Moran Gloria Wolnick Simone McFarland Kim Cousins Verne Lauritzen Ii - I. ITEM NO. 18 I I Approvals City Attorney Director of Finance City Manager ~f'" IJ/L (J(L., CITY OF TEMECULA AGENDA REPORT TO: City Manager/City Council FROM: Shawn D. Nelson, City Manager DATE: September 25, 2007 SUBJECT: City Council Travel/Conference Report - August 2007 PREPARED BY: Sue Steffen, Executive Assistant RECOMMENDATION: Receive and file On August 29th Council Member Ron Roberts traveled to Los Angeles to attend the Southern California Association of Governments Administration and Transportation & Communications Committee Meetings. Attachments: Meeting Agendas ~" ,. 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; Presidenl. Gary Ovitt S~II Berndrdinu (otinty.Fi~IVi(eple)idem:Ri(hJrdDlxon,Lake FOlest.SecondVkePresidenl: Harry Baldwin, San Gabriel. Immediate Pasl Prelidem:Yvonne B,Bulke,lolAngelesCounty Imperial (ounty: Vinor Carrillo, Imperial (o~nly .Jon Edney, EI CenUo Los Angeles County: Y\'Ulllle S. BUlk~, lm Angeles Coumy. lev YJro\la~sky, Los Angeles County. RichMd AIO{con, Los Angeles. Jim Aldinger, Manhatlan Beach. Hmy Baldwin, San Gabriel. Tony (Mdendl, Lo\ Angell'S. Stan Carroll, La Habra Height,. Margaret Clark, ROlenlead. Gene Danieh. Paramuun(. Judy Dunl<lp,lnglell'ood.RaeGabehch,longBeach. OavidGafln,Oowney.EricGM{elU,losA~geles . \Ve~dy Greuel. Los Angeles. frank Gurule, Cudahy.J,miceHahn,LosAngeles.lsadoreHall, Compton. Keilh W. HJnks, AZUSJ. Jose Huiw, Los Angeles. Jim Jeffra, Lan{aster. Tom -La6onge, Los Angeles. Paula lantl,Pomona. Barbara Messina, Alhambra .lJlry Nelson, Arte)ia.Paul~lowalka,Torrance.PamO'(on~or, Santa Moni{a. BernardPalks, los Angeles. Jan PelfY, Los Angcles. fd Reyes, LosAngdes. Brll Rosendahl, Los Angeles. Greig Smith, Los Angeles.Tom Sykes, Walnut. Mike Ten, South PaSoldeno.Tonia Reyes Uranga, Long Beach. AntonioVillarafgoso, LosAngeles. Dennis Wash~urn,Calab05aS.Ja{kWeiss,LosAngelts' HerbJ.Wesson, Jr., losA~geles. DcnnisZine, Los Angefes Orilnge(ounty;ChrisNorby,OrangeCounly. Christine Bar.nes, La Palmo. John Beauman, Brea. Lou Bone,fuslin.DebbieCook, Humington Beach. Leslie Daigle, Newport Bmh.RichardOixon,takeForest.TroyEdgar, tos Alamitos. Paul Glaab, Lagu~a Niguel. Robert Hernondez, Anaheim. Sharon Quirk, Fullerton Rivel$ide (ounty: Jeff Slone, Rivelside County . Thomas Buckley, lake Elsinore. Bonnie flickinger, Moreno Valley . Ron Loveridge, Riverside. Greg Pettis, Calh~dral City. Ron Robens,Teme{ula San Bernardino County: Gary Ovitt, San Bernardino County. Lawrence [)al~, Barstow. Paul fdton, Montclair. lee A~n Garcia, Grand Terrace.TimJilspfl,TownofA.ppleValley.Larry Mc(allon,Hfghland.OeborahRobertson,Riallo .AlanWapner,Ontario TribafGovernmenlRepresentative:Andrew MasielSI., Pe(hanga Bandoflui,enolndians VenturaCounty:UndaParks,Ventura(ounty. Glen Becerra,SimiValley.Carl Morehouse, San Buenaventura. ToniYoong, Pori Huenrm~ Orange (ounty rrilnsportation Auth.ority: ArtBrown,BuenaPark River.;ideCountyTransportation Commission: Robin lowe, Hemet Ventura(ountyTransportation (ommission:KeilhMillhouse,Moorpdrk 6.11.07 MEETING OF THE PLEASE NOTE DA TE AND TIME Thursday, August 30, 2007 8:30 a.m. - 9:30 a.m. SCAG Offices 818 West ih Street, 12th Floor Conference Room San Bernardino Los Angeles, CA 90017 213.236.1800 If members attachments of the public wish to or have any questions agenda items, please contact Carmen 213.236.1984 or summers@scaa.ca.aov review the on any of the Summers at 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, 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. RECEIVEO AUG 2 2 2007 CITY MANAGER'S OFFICE 'A D M I N 1ST RAT ION . AGENDA COMMITTEE "Any item listed on the agenda (action or information) may be acted upon at the discretion of the Committee." 1.0 ~ALL TO ORDER & PLEDGE OF ALLEGIANCE Hon. Ron Loveridge, Chair PAGE # TIME 2.0 PUBLIC COMMENT PERIOD Members of the public desiring to speak on an agenda item or items not on the agenda, bnt within the purview ofthe Committee, must fill out and present a speaker's card to the Assistaut 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. 3.0 REVIEW and PRIORITIZE AGENDA ITEMS . 4 .0 CONSENT CALENDAR 4.1 Annroval Items 4.1.1 Minutes of Julv 12. 2007 Meeting Attachment 4.1.2 Contracts over $250.000 Attachment 4.1.3 Aoorove the FY 2008-2009 Comorehensive Bud2:et Develooment Schedule Attachment 4.2 Receive & File . 4.2.1 ContractsfPurchase Orders and MOUs between $5.000 - $250.000 Attachment 1 8 11 13 #13746Jvl ADMIN AGENDA AUGUST 200? J.~I:(lOPM &/20/2007 C.SlIMMERS ADMI N ISTRATION COMMITTEE AGENDA 5.0 ACTION ITEMS 5.1 Re!!ional Comnrehensive Plan Sustainabilitv Conference Attachment Douglas Kim, SCAG Consultant Recommended Action: Co-fund $10,000 toward the cost of hosting a Regional Comprehensive plan Sustainability Conference in January 2008. 5.2 Contract Manual Amendment Attachment Ley ton Morgan, Contracts Mgr. Recommeuded Action: Amend sections 8.1.1 (Formal Request for Prop.IBid) and 8.1.2 (Informal Request for Prop.IBid) of the SCAG Contract manual to establish specific policy to govern Contracts funded from the General Fund. 5.3 Imnlementation Re!!ardin!! GASB 45 Irrevocable Trust Attachment Basil Pauas, Accounting Mgr. Recommended Action: Recommend that the Administration Committee approve the following documents relating to the implementation of the Governmental Accounting Standards Board Statement No. 45 (GASB 45) Irrevocable Trust. 5.4 Statement ofInvestment Policv Attachment Wayne Moore, CFO Recommended Action: Recommend that the Administration Committee Adopt the Amended Investment Policy. 11 PAGE # 31 32 34 47 " ~,. ?\. V'l TIME 5 minutes 5 minutes . 10 minutes 5 minutes . #137463vl ADMIN AGENDA AUGUST 2007 3,19028 PM 8/20/2007 C.SUMMERS ~DMINISTRATION COMMITTEE . AGENDA PAGE # TIME 5.0 ACTION ITEMS-Continued 5.5 Government and Public Affairs Classification Studv Results Attachment Rhonda Lawrence, SCAG Staff 56 5 minutes Recommended Action: Approve the Classification levels and the Salary ranges. 5.6 Snonsorshin of the 2008 Faster Freight Cleaner Air Conference Attachment Jonathan Nadler, SCAG Staff 59 5 minutes . Recommended Action: Approve $25,000 sponsorship of hosting the 2008 Faster Freight - Cleaner Air Conference. 6.0 INFORMATION ITEMS 6.1 CFO Monthlv Financial Renort for June & Julv 2007 Attachment Wayne Moore, CFO 60 10 minutes 7.0 AUDIT COMMITTEE REPORT Hon. Paul Nowatka, Chair 8.0 STAFF REPORT . 11l #137463vl ADMIN AGENDA AUGUST 2007 3019028 PM 8/20/2007 C.SUMMERS ADMINISTRATION COMMITTEE , AGENDA .~ PAGE # TIME 9.0 FUTURE AGENDA ITEMS Any Committee member or staff desiring to place items on a future agenda may make such a request. 10.0 ANNOUNCEMENTS 11.0 ADJOURNMENT The next meeting of the Administration Committee will be held on Thursday, October 4, 2007 at the SCAG offices in downtown Los Angeles. . . IV #137463vt ADMIN AGENDA AUGUST 2007 3,19:28 PM 8/20/2007 c.SUMMERS 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 Offitell:PresidentGaryOvitt,S~nBemilrdino (ounty.firstVice Pres/dent:fiichard Dixon, La~e FOIest. Second VJce President IlarryBaldwln, San Gilbriel. Immediate Past President: Yvonne B.Burke,I.osAngeles(ounty Imperial County: Victor (a1l1l!O, Imperial Coun'Y.Jon Edney,E1 (l/lIlrO lol Angeles County: Yvonne B. Burke,los Angeles County.ZevYaros!mky, LOl Angeles (ounty. Richard Alarcon, tOl Angeles. Jim Aldinger,Milnhattan8each.llarryBaldwin,San Gabriel. Tony (ardenas, Los Angeles. SIan Cmoll,LiI lIabra Heights. Margaret Clark, Rolemead. Gene Daniell, Paramotlnt.Jndy Dunlap,lnglewood. Rae GabeUch,tcng Beach. [lavidGafin. Downey. Eric Garretti,LosAngeles . Wendy Greuel,losAngeles. Frank Gurule, (udahy.JaniceHahn,LolAngeles.lsadoreHall, (olllflton.J(ellhW,Hanks,Alusa.lo~Hullar, Los Angeles. Jim Jeffra. Lancaster. Tom la8onge, lo5 Angelel' Paula lanll,Pomona. Barbara Meslina, Alhambra .larry Nelson, Artella.PauINowatka,Tnmnce.PamO'(onnor, Santa Monica. Bemard Parks, LosAngeles.Jan Perry,LolAngeles-EdR~LosAngelel.BilJ Rosendahl, Los Angeles. Greig SmIth, Los Angeles. Tom Sykes, Walnut. Mikeren,Soulh Pasadena.ronia Reyes Uranga, Long8ead1. AnlonieVillaraigosa, Los Angeles. Oennil Walhbum.Calabasal.JadWelss,losAngefes. Herb J. Wmon, Jr., Los Angeles. OennllZlne, Los Angeles Orange County: ChrIs NOlby, Orange Counly. Chrinlne Barnes, La Palma. John Beauman, Blea. LouBone,Tultln. Oebble(ouk, lIunlingtonBmh.Les!ieOaigle,Newport Bmh. Richard Olxon, Lake Forelt.Troy Edgar, los Alamilcs' Paul Glaab, LagoR! Ni9oel. Robert HemaRdel, Anaheim. Sharon Quirk, Fullerlon RjversideCounty:JeffSlone,RiversideCounty . !bomas Buddey, lake Elsinore. Bonnie Flickinger, Moreno Valley. Ron Loveridge, Riverside. Greg Pettis, (athedral Gty. Ron Robelts,Temecula San Bemardino County; GaryOvitt,Sall Bemardino County.lawren(e Dale, Barstow. Paol Eaton, Montdalr. Lee Ann Garcia, liIand Terrace.nmJalper,TownofAppleValley.Larry MtCaflon. Highland. Oebcrah Roberlson,Rlalto .AlanWapnef,ontario TrlbaltiovemmentReprestnlatlYe:Andrew MiIlleISr.,Pe(h~ngaBandoflulle~olndianl VentufaCounty:UndaParks,VenturaCounty' Glen Becerra,SimiValJey. (ari Morehoule, San Buenaventura.TonIYoung,PonHueneme Orange County TransportatiOll Authorlty: Arl Brown, Buena I'iIrk RiversideCountyTlaIISpOrtatlon Commission:Roblnlowe,lIemet VenturaCountyTransportalion Commission:KeithMillhouse,Moorpilrk 6.21.07 MEETING OF THE TRANSPORTATION AND COMMUNICATIONS COMMITTEE PLEASE NOTE DATE AND TIME Thursday, August 30, 2007 9:30 8.m. -11:30 8.m. SCAG Offices 818 West 7th Street, 12th Floor Conference Room San Bernardino 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 Cathy Alvarado at 213.236.1896 or alvarado@scaa.ca.aov Agendas and Minutes for the Transportation and Communications Committee are also available at: www.scaa.ca.aov/committees/tcc.htm BeAG, 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 BeAG 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. TRANSPORTATION COMMU NICATIONS & COMMITTEE AGENDA PAGE # "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. Alan Wapner, 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 <;:hair may limit the total time for comments to twenty (20) minutes. 3.0 REVIEW and PRIORITIZE AGEN~~ ITEMS 4.0 CONSENT CALENDAR 4.1 Approval Items 4.1.1 Minutes of Julv 12. 2007 Meetin!! Attachment 1 4.2 Receive and File 4.2.1 2007 State and Federal Le!!islation Matrix Attachment 12 Summary of State and Federal legislative bills of relevance to SCAG operational areas and issues of concern. >< SOUTHERN CALIFORNIA ASSOCIATION of GOVERNMENTS i TIME Doc# 138692 TCC 8/30/07 8/16/20074:55:45 PM TRANSPORTATION COM M U N I CAT 10 N S &. COMMITTEE AGENDA PAGE # TIME 5.0 ACTION ITEMS 5.1 2008 Regional Transoortation John Asuncion, 45 5 minutes Imorovement Program (RTIP) Guidelines SCAG Staff Attachment Staff is requesting that the Draft 2008 RTIP Guidelines be released for public review. Subsequently, staffwilI request approval from the TCC and Regional Council. Recommended Action: Approve release of Draft 2008 RTIP Guidelines for Public Review. 5.2 Public Particioation Plan Amendment No.1 Justine Block, 161 5 minutes Attachment SCAG Staff The Public Participation Plan Amendment No. 1 includes detailed strategies, procedures and techniques related to public participation on SCAG's Regional Transportation Plan, Regional Transportation Improvement Program, and Overall Work Program. Recommended Action: Recommend the TCC approve and adopt the Public Participation Plan Amendment No.1. 6.0 AVIATION TASK FORCE REPORT Hon. Alan Wapner, Chair 7.0 MAGLEV TASK FORCE REPORT Hon. Lou Bone, Chair ~ SOUTHERN CALIFORNIA ASSOCIATION of GOVERNMENTS ii Doc#138692 Tee 8/3D/07 8/t6/20074:55:45 PM TRANSPORTATION COMMUNICATIONS & COMMITTEE AGENDA PAGE # 8.0 INFORMATION ITEMS 8.1 Reeional Comnrehensive Plan Goals and Outcomes for Transnortation & Securitv Emereencv Prenaredness Chanters of the Draft Reeional Comnrehensive Plan Attachment 205 Alan Thompson, SCAG Staff Staff will present. the goals and outcomes for the Transportation and Security & Emergency Preparedness Chapters of the Draft Regional Comprehensive Plan. 9.0 CHAIR'S REPORT Hon. Alan Wapner 10.0 FUTURE AGENDA ITEMS TIME 10 minutes Any committee member or staff desiring to place items on a future agenda may make such request. 11.0 ANNOUNCEMENTS The next RTP Workshop will be held on August 20 in Long Beach, location yet to be determined. 12.0 RTP WORKSHOP 10:00 am to 11:30 am Major Issues and Framework for the next RTP 1. The region's accomplishments to date a. Summary of major accomplishment areas 2. The region's challenges a. Funding - Revenues are fully committed o Preliminary baseline revenues o Preliminary baseline expenditures b. New Requirement imposed by SAFETEA-LU o More stringent ink,t-"",,,tion of Fiscal Constraint c. Our needs exceed available funding o list of un-funded needs ~ SOUTHERN CALIFORNIA ASSOCIATION of GOVERNMENTS Hi 15 minutes 40 minutes Doc#138692 TCC 8/30/07 8/t6!20074:55:45 PM TRANSPORTATION COMMU NICATIONS & COMMITTEE AGENDA PAGE # TIME 12.0 RTP WORKSHOP continued d. Aging Infrastructure - Example of unmet needs o State Highway System preservation (possible Caltrans presentation) e. Proposed RTP development framework o Concept (i.e., core, committed and expanded) o Likely investments included o Potential revenue sources and related limitations 3. Discussion 20 minutes 13.0 ADJOURNMENT The next meeting of the Transportation & Communications Committee will be held on October 4, 2007 at the SCAG office in downtown Los Angeles. ~ SOUTHERN CALIFORNIA ASSOCIATION of GOVERNMENTS iv Doo# 138692 Tee 8/30/07 8/16120074:55:45 PM Ii - I. ITEM NO. 19 I I Approvals City Attorney Director of Finance City Manager ~ /JIL (J(.G CITY OF TEMECULA AGENDA REPORT TO: City Manager/City Council FROM: Mark Harold, Director of Building and Safety DATE: September 25, 2007 SUBJECT: Departmental Report - August 2007 The month of August 2007 showed a gain of construction activity as compared to previous months. The following is an overview of permit and inspection activity for August. SimIle Family Development - Tracts In August, the City issued 6 new single family tract home permits. The homes are primarily in Wolf Creek which has146 homes under construction. Harveston also has 116 homes under construction at this time. There are a total of 428 single family homes under construction throughout the City at the current time. Custom Sinqle Family Homes As of August, we have 11 custom homes under construction. Multi-Family Development In August there were 96 condominiums permits issued for Temecula Lane, 96 condominiums under construction in the Harveston Savannah Development, and 180 units at Temecula Creek Village. Commercial Development There was 4 new commercial permit issued in August. The Plan check activity submittal for the Redhawk Tire Store is located at 44052 Margarita Road and Temecula Community Church at 29825 Santiago Road. Total Permit and Inspection Activity During the month of August inspection staff performed 6,178 inspections and 193 permits were issued representing a construction valuation of $17, 169,904.15. The total building permit and plan check fees collected in the month of August were $150,796.82. Ii - I. ITEM NO. 20 I I Approvals City Attorney Director of Finance City Manager V 1)/2 (J(0 CITY OF TEMECULA AGENDA REPORT TO: City Manager/City Council FROM: Debbie Ubnoske, Director of Planning DATE: September 25, 2007 SUBJECT: Monthly Report The following are the recent highlights for the Planning Division of the Community Development Department for the month of August 2007. CURRENT PLANNING ACTIVITIES New Cases The Division received 68 new applications for administrative, other minor cases, and home occupations including 11 applications for public hearings during the month of August. The new public hearing cases are as follows: CONDITIONAL USE PERMIT DEVELOPMENT PLAN DEVELOPMENT PLAN AMENDMENT MINOR MODIFICATION PARCEL MERGER TENTATIVE PARCEL MAP 3 3 1 2 1 1 Soecial Proiects & Lona Ranae Plannina Activities The Long Range Planning Division 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: . Temecula Regional Hospital - The Riverside County Superior Court overturned the City Council's approval of the Temecula Regional Hospital project and staff is working with applicant and the City Attorney's office to prepare a Supplemental Environmental Impact Report to address issues related to noise, traffic mitigation and an off-site contaminated groundwater plume. Each Planning Application that was originally approved will need to go through the approval process again, including Planning Commission and City Council public hearings. Staff has processed three contracts with sub-consultants to manage the special studies required forthe Supplemental EIR. Planning Applications were submitted on July3, 2007. A Notice of Preparation of a Supplemental Environmental Impact Report was sentto the State on July 6, 2007. The Supplemental EIR is scheduled to be released for public review on October 1, 2007 and the project is tentatively scheduled for a Planning Commission hearing on December 5,2007 and a City Council hearing on January 8,2008. (PAPP) . General Plan Land Use Map Update - Planning staff and GIS have completed revision exhibits that explain the necessary changes to the Land Use Map caused by overlapping data sets, differences in conceptual plans versus recorded maps, and changes in the built environment. Some examples of changes include streets currently shown as residential will have no land use designation, Specific Plan areas will be modified to reflect recorded maps, and new park and school sites will be noted as Open Space and Public Institutional Facilities. All property owners affected by the proposed map changes will be notified by mail prior to any hearing. A Planning Commission hearing was held on August 15, 2007 with an anticipated City Council hearing in October 2007. (PAPP) . General Plan Housing Element Update - Staff has been attending WRCOG workshops on the Regional Housing Needs Assessment in preparation for the update of the City's Housing Element. SCAG released the Draft Regional Housing Needs Assessment numbers to cities and agencies in the region in February. Staff has reviewed the Draft RHNA Allocation Plan and supports the proposed housing distribution for Temecula. More than 40 cities throughout SCAG's six-county region have filed appeals on their proposed housing allocation. This could lead to an increase in the numbers allocated for Temecula. Appeals forthe WRCOG-area jurisdictions will be heard on April 30, 2007 at SCAG's Inland office in Riverside. It is expected that affordable housing goals and Housing Element Update must be certified by the State Department of Housing and Urban Development by December 2008. (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 needs to map the existing flood plain and complete a slope analysis to create a comprehensive constraints map of the area. Staff met with the Council Subcommittee in late February to brief the Council on staff strategies for bringing much needed services into the area. It was determined that a public workshop should be held to solicit input from area residents. Workshops were held on March 29, 2007 and May 15, 2007, with about 60 Nicolas Valley residents attending each workshop. Staff will continue to conduct workshops with residents forthe nextfourto six months to develop a plan for the area. The next workshop will provide information on infrastructure options and will be held the last week in September. (PAPP) . Transit Center and Transit Opportunities - Staff is working with the County of Riverside Flood Control District, Army Corp of Engineers and Riverside Transit Agency staff to locate the proposed transit center within the recreation portion of the Murrieta Creek Flood Control, Environmental Restoration and Recreation Project, generally located in the vicinity of Jefferson Avenue and Cherry Street. The transit center will to act as the hub for regional and local transit connections within the Temecula Valley. The recently formed City Council Transit Ad Hoc Subcommittee met with representatives from San Diego Association of Governments, Western Riverside Council of Governments, Riverside County Transportation Commission, Riverside Transit Agency, and Caltrans on August 22, 2007 to discuss planning efforts underway to expand local and regional transit opportunities to residents within the Temecula valley. The Ad Hoc Subcommittee will begin to hold internal meetings with staff to develop policies and implementation strategies to fully integrate transit planning with the City's General Plan, and will host interregional meetings with outside agencies twice a year to help coordinate programs between key players in the two planning regions. (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. Staff met with representatives from Riverside County in January for a briefing on the County's newly adopted Noise Ordinance. A draft noise ordinance has been prepared and is being reviewed by the City Attorney. A second City Council Subcommittee meeting was held on April 3, 2007. The draft Ordinance was presented to the Planning Commission on June 6, 2007. The Planning Commission had several concerns with the draft Ordinance and continued the item for 60 days for staff to re-craft the Special Noise Standards section of the Ordinance. Staff held a publicly noticed City Council Subcommittee meeting on July 24, 2007 where proposed revisions were discussed. Staff has worked with the City Attorney to complete revisions to the proposed Noise Ordinance. This item was scheduled for Planning Commission on September 5,2007 where the Commission recommended approval of the draft Noise Ordinance. This item is scheduled for City Council on September 25, 2007 (PAPP) . Water Efficient Landscaping Ordinance - The State of California recently adopted a Model Ordinance entitled California Friendly Landscapes, which identifies requirements for design, planting and irrigation. Riverside County recently adopted a new ordinance which includes the California Friendly criteria and expands on the model ordinance. Staff has compared it to the City's existing Water Efficient Landscape ordinance and determined that the City Ordinance should be revised. Staff is working with the City's Landscape Architect to update the Ordinance by the end of 2007. (WEST) . 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. Temecula PD will be scheduling briefing meetings with member of the City Council. (PAPP) . 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) . Heritage Tree Ordinance - The proposed Heritage Tree Ordinance has been prepared and is being reviewed by the City Attorney's office. The ordinance will serve to protect certain identified tree species and other large diameter trees throughout the City. A public hearing date has not been set at this time. (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) . Development Code Update - Staff is preparing a Development Code amendment for needed corrections or clarifications. This item is scheduled for the September 19: 2007 Planning Commission meeting and tentatively scheduled for the October 9, City Council meeting. (WEST) . Sustainable Development Program - Staff is attending workshops and meetings, and developing a work program in order to create a sustainable development program within the City. Staff is also reviewing existing City policies and programs that relate to green development standards and preparing a matrix of mandatory and voluntary programs with the intent to bring forward a recommendation to the City Council in the beginning of 2008 encompass the intent of a Sustainable Development Program. (WEST) . Santa Margarita Area Annexation - The consultant is preparing the draft Environmental Impact Report for the annexation area. The screencheck draft for staff review is expected to be completed in September. Staff is also preparing the Plan for Municipal Services, one of the Local Agency Formation Commission application requirements for the expansion of Sphere of Influence and the Santa Margarita Area Annexation. (WEST) Planning Agenda Report 08-01-2007 through 08-31-2007 . . Recently Approved . P A07 -0208 TEMECULA ON STAGE APN# 922036036 KNUTE NOLAND A Major Temporary Use Permit for Temecula On Stage to be held on September 1,2007 at the Temecula Chiidren's Museum, the Temecula Community Theatre and Main Street in Old Town Temecula from 5:00 PM to 11 :00 PM. Submitted Date 7/16/2007 Approved Date 8/28/2007 . PA07-0120 BARONS MARKETPLACE APN# 954030001 BETSY LOWREY A Minor Conditional Use permit to allow for Type 42 Alcohol for the operation for wine tasting room within Baron's Marketplace located within the Meadows Plaza (neighborhood commercial zone) at the Southeast Corner of Rancho California Road and Meadows Parkway. Submitted Date 4/16/2007 Approved Date 8/9/2007 APN# . PA06-0192 Morning Ridge Condo TTM 944220003 CHERYL KITZEROW/MATT PETERS A Tentative Tract Map (No. 34907) to create a one lot condominium at the Morning Ridge Apartment complex. PA06 -0193 - Development Plan and Conditional Use Permit to convert 200 apartment units into ownership condominiums is associated with the project. Project site is located at the southwest corner of Rancho California Road and Margarita Road (addressed as 30660 Milky Way Drive. (Please note this was reviewed as PR06-0003) Submitted Date Approved Date 1 6/29/2006 8/29/2007 I APN # . PA06-0193 Morning Ridge Condo Conv 944220003 CHERYL KITZEROW/MATT PETERS A Multi-Famiiy Residential Development Plan and Conditional Use Permit to convert a 200 unit apartment complex (Morning Ridge Apartments) into ownership condominium units located at the southwest corner of Rancho California Road and Margarita Road (addressed as 30660 Miiky Way Drive). PA06-0192 - Tentative Tract Map (No. 34907) is associated with this request. (Please note this was reviewed as PR06-0003) Submitted Date 6/29/2006 Approved Date 8/29/2007 . PA06-0313 Via Montezuma /ndustrial B/dg APN # 921050004 DANA SCHUMA A Development Plan application for the construction of a 20,820 square foot industrial building located on the south side of Via Montezuma west of Jefferson Ave. (APN 921050004) (Related PA06-0306) Submitted Date Approved Date 10/18/2006 8/1/2007 1016 Planning Agenda Report 08-01-2007 through 08-31-2007 P A07 -0048 PHS/Garrett APN# 909370018 DANA SCHUMA A General Plan Amendment application to amend the Land Use Element to add Future Specific Plan Overlay BB. The future Specific Plan will define the permitted land uses and development standards for the 84 acre project located at the northwest corner of Winchester Road and Dendy Parkway. (Related projects PA06-0369 and PA06- 0370) Submitted Date 2/8/2007 DRC Meeting Date 2/14/2007 City Council 9/25/2007 APN# . PA07-0176 Stage Stop 922023022 DANASCHUMA A Major Modification to the existing Stage Stop Complex for the addition of a 5,246 square foot, two-story office building on the existing bus bays, a 3,328 square foot second floor expansion over the existing Wine & Beer Garden, and associated flat work improvements to include a new trash enclosure, fire pit, and storage room. The project is located at 28464 Old Town Front Street. (Related Pre-Application PR06-0022). Submitted Date DRC Meeting Date No Hearing Planned 6/11/2007 7/12/2007 . PA07-0220 PHS/Garrett APN# 909370018 DANA SCHUMA A Development Agreement to authorize future industrial, commercial, retail, high-density residential, and/or public institutional facilities development on an approximate 84 acre property generally located at the northwest corner of Dendy Parkway and Winchester Road. (Related PA07-0048; PA06-0370; PA06-0369; and PA07-0090). Submitted Date 7/27/2007 DRC Meeting Date City Council 9/25/2007 . PA06-0346 CHAPARRAL V/LLAGE APN# 920100025 CHRISTINE DAMKO A Development Plan for a proposed neighborhood commercial shopping center consisting of five single-story buildings totaling 40,400 square feet on a 4.3 acre lot located at the corner of Nicolas Road and Winchester Road. (APN: 920-100-025, 026, 030, 032). Submitted Date 11/16/2006 DRC Meeting Date 1/4/2007 Planning Commision 10/3/2007 . PA06-0363 Park Place Condo Map PM 35319 APN# 909310001 CHRISTINE DAMKO A Tentative Parcel Map (PM 35319) for condominium purposes to create six units within the Park Place Ottice building (currently in construction) located at the south west corner of Diaz and Winchester Road. (APN: 909-310- 001) Submitted Date 12/5/2006 DRC Meeting Date Directors Hearing 8/23/2007 . PA06-0369 PHS/Garrett APN# 909370018 DANA SCHUMA 2016 Planning Agenda Report 08-01-2007 through 08-31-2007 A Development Plan application to construct a three story, 615,050 square foot concrete tilt-up industrial buiiding for office and warehouse use and a 400 square foot pump house on 30,8 acres (Parcel 4 of TTM 35181). The project site is located on the northwest corner of Dendy Parkway and Winchester Road. APNs 909-370-018; 909-370-032 (Related to PA06-0279 and PA06-0370 - TTM 35181). Submitted Date 12/12/2006 DRC Meeting Date 1/4/2007 City Council 9/25/2007 . PA06-0370 PHS/Garrett APN # 909370018 DANASCHUMA A Tentative Tract Map (TTM 35181) to subdivide 86.1 acres into five parcels, Parcels 1 is planned for future commercial and residential uses, parcels 2 and 3 are planned for future commercial and/or industrial uses, and parcel 4 will be developed with an industrial building to accommodate the future expansion of PHS, The project site is located at the northwest corner of Dendy Parkway and Winchester Road. APNs 909-370-018; 909-370-032 (Related to PA06-0279 and PA06-0369) 5th submittal is being routed on 05-30-07, PA06-0370...FIRE, TCSD, BUILDING AND PUBLIC WORKS. Submitted Date 12/12/2006 DRC Meeting Date 1/4/2007 City Council 9/25/2007 . P A07 -0084 RANCHO VIEW TPM APN # 944290022 BETSY LOWREY A Tentative Parcel Map (TPM 35481] to subdivide 5.26 acres into 2 parcels located at the southwest corner of Rancho California Road and Moraga Road. This Tentative Parcel Map is related to PA07-0085 a Development Plan for two office buildings [APN 944-290-022] Submitted Date DRC Meeting Date Planning Commision 3/15/2007 4/26/2007 10/3/2007 APN# . PA07-0085 Rancho View Development Plan 944290008 BETSY LOWREY A Development Plan to construct a three-story 50,000 square foot office building and a three-story 35,000 square foot office building on 5.3 acres located at the southwest corner of Rancho California Road and Moraga Road, This Development Plan is related to PA07-0084 - a Tentative Parcel Map to subdivide into two parcels [APN 944-290- 022] Submitted Date 3/15/2007 DRC Meeting Date 4/26/2007 Planning Commision 10/3/2007 30f6 Planning Agenda Report 08-01-2007 through 08-31-2007 . PA07-0241 Bostik Outdoor Container MTUP APN# 909320042 BETSY LOWREY A Major Temporary Use Permit Application for the placement of a temporary dry bulk storage silo container located within the Light Industrial Zone at 27460 Bostik Court [APN909-360-038] Submitted Date 8/21/2007 Anticipated DRC Meeting Date 9/13/2007 No Hearing Planned P A07 -0242 2007 FALL ROD RUN APN# 922036031 KNUTE NOLAND A Major Temporary Use Permit for the 2007 Fall Rod Run to be held on public streets and private property in Old Town Temecula on October 12 and 13, 2007. Submitted Date 8/21/2007 Anticipated DRC Meeting Date Administrators Hearing 9/30/2007 . PA07.0207 Creek MiniMart ABC 20 PCN APN # 961010034 ERIC JONES A Public Convenience or Necessity application. This PCN wili accompany a Minor Conditional Use Permit for an ABC license type 20 for The Creek Minimart and Cafe. The business is located at 31285 Highway 79 South and has a total of 706 squal'e feet. Submitted Date 7/12/2007 Anticipated DRC Meeting Date 6/26/2007 No Hearing Planned . PA07-0216 Ver/zon Wireless Telecomm. APN # 959070024 ERIC JONES A Minor Conditional Use Permit accompanied with an Antenna Facility application for a proposed 80-foot high Verizon Wireless Telecommunications facility. The antenna will be incorporated into an existing self-storage facility and 576 square feet of the existing structure wili need to be modified to accommodate the antenna and support equipment, located at 31524 Rancho Pueblo Road. Submitted Date Anticipated DRC Meeting Date No Hearing Planned 7/23/2007 9/6/2007 . PA07-0199 TEMECULA REGIONAL HOSPITAL APN # 959080010 EMERY J. PAPP A proposed Zone Change (Planned Development Overlay) to create a new PDO-9 and increase the maximum allowable height to accommodate two-bed towers for the Temecula Regional Hospital Project Submitted Date 7/3/2007 Anticipated DRC Meeting Date 7/31/2007 No Hearing Planned . PA07-0200 TEMECULA REGIONAL HOSPITAL APN,# 959080001 EMERY J. PAPP A Development Plan to permit the construction of a 320-bed hospital with one six-story bed tower and one five-story bed tower, a four-story medical office building, a three-story medical office building, a single-story cancer treatment and research center, a single-story physical fitness and therapy center, and surface parking on a 39.5 acre site. Total building square footage is approximately 565,300 square feet. Submitted Date 7/3/2007 Anticipated DRC Meeting Date 7/31/2007 No Hearing Planned 40f6 . PA07-0201 TEMECULA REGIONAL HOSPITAL Planning Agenda Report 08-01-2007 through 08-31-2007 APN # 959080001 EMERY J. PAPP A Tentative Parcel Map to consolidate eight parcels into one parcel on 39.5 acres located between Highway 79 South to the south, DePortola Road to the north, and aproxlmately 700 feet west of Margarita Road. Submitted Date Anticipated DRC Meeting Date No Hearing Planned 7/3/2007 7/31/2007 . P A07 -0202 TEMECULA REGIONAL HOSP/TAL APN # 959080001 EMERY J. PAPP A Conditional Use Permit to allow the construction and operation of a 320-bed hospital facility, including a helipad for the proposed Temecula Regional Hospital Project. Submitted Date 7/3/2007 Anticipated DRC Meeting Date 7/31/2007 No Hearing Planned . PA07-0198 TEMECULA REG/ONAL HOSP/TAL APN# 959080001 EMERY J. PAPP A General Plan Amendment to eliminate the two-story height limitation within the existing Z-Overlay (Future Specific Plan) designation for the Temecula Regional Hospital Project Submitted Date 7/3/2007 Anticipated DRC Meeting Date 7/31/2007 No Hearing Planned . PA07-0229 Temecula Villas APN # 922260018 CHRISTINE DAMKO A Development Plan application for the development and construction of 247 apartment units within 16 buildings located on the southwest corner of First Street and Pujol Street (Former Pre-App PR06-0020). Submitted Date Anticipated DRC Meeting Date No Hearing Planned 8/9/2007 9/20/2007 . P A07 -0235 TEMECULA VALLEY F/LM FESTIVAL APN# 921270034 KNUTE NOLAND A Major Temporary Use Permit for the 13th annual Temecula Valley International Film/Music Festival to be held at Tower Plaza on September 12 thru September 16, 2007 from 9:00 a.m. to 11 :00 p.m. daily (APN: 921-270-034). Submitted Date 8/17/2007 Anticipated DRC Meeting Date Administrators Hearing 9/10/2007 APN # . PA07-0239 Vail Ranch Headquarters 960010044 BETSYLOWREY A Development Plan for the restoration of the Vail Ranch Headquarters which includes historic adaptive re-use and new construction of a commercial shopping plaza with retail, restaurant and office tenants totalling 27,464 square feet of existing historic structures and new additional "historically appropriate" construction on 4 acres zoned Historic Commerical within the Vail Ranch Specific Plan located at 32115-32125 Highway 79 South, generally located at the southeast corner of Redhawk Parkway and Highway 79 South, behind Kohls [APN 960-010-044J Submitted Date 8/20/2007 Anticipated DRC Meeting Date 9/20/2007 No Hearing Planned . PA07-0247 Unity Church MCUP APN# 909281024 BETSY LOWREY 5016 Planning Agenda Report 08-01-2007 through 08-31-2007 A Minor Conditional Use Permit for the operation of Unity Church of Temecula Valley located within a 1,910 square foot suite at 41743 Enterprise Circle North Suite 108, zoned Business Park (BP). No exterior modifications or tenant improvements are anticipated. [APN 909-281-024J Submitted Date 8/27/2007 Anticipated DRC Meeting Date 10/3/2007 Directors Hearing 10/25/2007 APN # . PA07-0251 Melting Pot Minor CUP -A/cohol PM-26232-1 CHERYL KITZEROWIMATT PETERS A Minor Conditional Use Permit to allow for the sale of alcohol at the Melting Pot Restaurant located in the Rancho Temecula Town Center at the northeast corner of Winchester and Nicholas Roads (Note: A CUP is required per the Conditions of Approval for the Rancho Temecula Town Center CUP - PA04-0540). Submitted Date Anticipated DRC Meeting Date No Hearing Planned 8/28/2007 . P A07 -0252 Winchester Hills DA Amendment APN# 916400001 CHRISTINE DAMKO A Development Plan amendment and EIR Addendum to amend the timing thresholds on the Winchester Hills Development Agreement located with the Harveston Specific Plan service commercial area, west of Ynez Road, north of Date Street. Submitted Date 8/29/2007 Anticipated DRC Meeting Date No Hearing Planned . PA07-0253 Temecu/a Creek Plaza cell site APN # 961010025 KATIE LECOMTE A Minor Conditional Use Permit for a wireless telecommunications facility to be located at 31045 Highway 79 South within a tower element of Building B in Temecula Creek Plaza, consisting of the rooftop installation of twelve panel antennas, one 24" parabolic dish, and four related equipment cabinets, all to be screened by RF transparent screening, which is proposed to be painted and textured to match the existing building material. (APN: 961-010- 031). Submitted Date 8/30/2007 Anticipated DRC Meeting Date 9/27/2007 No Hearing Planned 6016 :; ~ ." ~<~/ ",.". VV','- ;:. '. ~ w 0-,.- ~ I ~ Legend Planning St t a us - August 2007 o 1. Recently Approved o 2. Scheduled for Hea . nng . 3. New Submittals Pending ORe M . eetlng fa Ii - I. ITEM NO. 21 I I Approvals City Attorney Director of Finance City Manager fJPf'" /J12. (JU..., CITY OF TEMECULA AGENDA REPORT TO: City Manager/City Council FROM: William G. Hughes, Director of Public Works DATE: September 25, 2007 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 August, 2007. CAPITAL IMPROVEMENT PROJECTS Monthly Activity Report August I September 2007 Prepared By: Amer Attar Submitted by: William G. Hughes Date: September 25, 2007 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. Roripaugh Developer (Ashby) schedule shows access and utilities to the site in August 2007. Because of this there was cost to re-mobilize and complete the project when the aforementioned items are complete, these costs are reflected in an approved change order total, which is the responsibility of the developer. In addition, a fire engine/truck venting system (requested/added on 2/06) will be installed when the Contractor is re-mobilized; this cost is also included in the approved change order total. 2. Temecula Education Center- Rough Grading This project will provide for the grading of the proposed Temecula Education Center. Project was awarded on 4/11/06. Construction started on 5/1/06. 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 and Diaz Road was brought up to grade. All work was completed on March 28, 2007. Other ongoing work under this contract involves EMWD work outside of the project limit which was completed in late July. Ongoing issues will be preparing the property for the rainy season and project close out with EMWD, which will be resolved by the end of September. 3. 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 includes the building and the corporate yard. The project was awarded on July 25, 2006, a preconstruction meeting was held on 8-10-06 and the Notice to Proceed was issued effective 8-11-06. Misc. trades are completing their work and applying the final finishes - majority of work has been completed. We anticipate having staff in the building and operational by October 1 sl. 4. Fire Station - Wolf Creek Site A new 3-bay, 9,062 SF, heavy urban fire station will be built at the SE corner of Wolf Valley Rd & Wolf Creek Dr South. A $3,591,000 construction contract was awarded to RC Construction on 7/25/06. A Notice to Proceed for this 260 workday contract was issued on 8/15/06. The final walk- through for punchlist occurred in July. Fire moved in July 30,2007. Contractor concentrated on final punch list items. Per Planning, the perimeter wall & downspouts are to be painted. Landscape subcontractor returned to re-sod specific areas in preparation of the grand opening, which is set for Saturday, 9/15/2007. 5. 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 aT-intersection at Diaz. The traffic signal at existing Diaz Road and Rancho California Road will be removed. The Notice to Proceed was issued and construction began on 3/26/07. Contractor has completed Phase III of the project: construction of the median on the new Diaz Rd alignment, and the median island on Rancho California Road at old Diaz Rd. Work on Phase IV, which includes landscaping, median island stamped concrete, and final paving, is currently on hoid pending securing recycled irrigation water service from Rancho California Water District. Project completion is scheduled for October. 6. Rancho California Road Widening, Old Town Front Street to 1-15 (Southside) This project will construct an additional eastbound lane to provide for a right turn lane to southbound 1-15, as well as modify the existing median to accommodate dual left turn lanes from westbound Rancho California Road to southbound Old Town Front Street. The retaining wall is complete and landscaping of embankment is complete. Numerous issues and utility conflicts with the traffic signals, proposed curb elevations and the proposed storm drain across Front Street have come to light and stalled progress. The right turn lane will be paved starting September 17th and the Traffic Signal relocated and energized the night of Sept. 20th. We anticipate completing the work at the end of October. 7. 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. Caltrans has issued an Encroachment Permit for the construction and maintenance of the project. The project was awarded on 05/08/07 with the pre-construction meeting held on 8/13/07. The Notice to Proceed effective date is 8/17/07 with completion expected in mid October, 2007. Traffic Control Plan is pending approval. A material delay issue from the Contractor is being addressed. 8. Citywide Concrete Repairs, Phase II - FY 2006-07 This project will replace old and cracked concrete throughout the City. The project was advertised and two contractors submitted bids. Bids were opened on 05-29-07. The lowest bidder was Del Rio Enterprise. The Council awarded the contract on June 12th. The contract was forwarded to the contractor. Contractor submitted traffic plans to the City for review. The Traffic Division provided comments and the PM reviewed the comments with the contractor. They will revise accordingly and resubmit to the City. Maintenance Division has added 35 new locations to the scope. This will be discussed with the contractor at the pre-con meeting. 9. 1-15 and 79 South Sign Replacement - Temecula Parkway Name Addition and Replacement of 79South Signs Within City Limits This project will add the newly adopted name of "Temecula Parkway" to the appropriate freeway signs and change all "79 South" signs within City Limits. DBX and the City's maintenance crew are installing the signs along 79. The City has obtained an Encroachment Permit from Caltrans to replace the freeway signs. The contractor for the freeway signs is processing his duplicate Encroachment Permit through Caltrans. All signs should be replaced before the effective date of the name change, October 1 st 2 10. Murrieta Creek Multi Purpose Trail This project will build equestrian and bike trails along Murrieta Creek between Rancho California Road and Diaz Road. The project is funded in part by a $1,214,000 federal grant. All necessary approvals to advertise the project have been obtained and Council has authorized the solicitation of construction bids. The City sent the Encroachment Permit Application to the Riverside County Flood Control District on Dec. 13, 2006. The issuance of the permit is still pending. The project was advertised for construction bids and construction bids opening has been delayed until 08/15/07 in order to incorporate the changes dictated by the US Army Corps of Engineers' Murrieta Creek project. Bids were opened on 08/15/07. City Council awarded the construction contract to lAC Engineering, Inc., at the August 28, 2007 meeting. Once the Encroachment Permit is received from Flood Control a Pre-Construction Meeting will be held and construction will begin... PROJECTS BEING 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 Pala Road) to its ultimate width from the Pechanga Parkway Bridge to Pechanga road. The Environmental Document (Categorical Exclusion) was approved by FHWA on April 19, 2007. The PS&E Package & request for authorization was submitted to Caltrans on 7/2/07. However, Caltrans will not process the documents until a Right of Way Certification is approved. Right of Way negotiations are underway with the property owners. The Right of Way Certification cannot be completed until negotiations are resolved with the property owners or the City gain possession of the properties. Once the City receives a letter of authorization for construction from Caltrans, the City can start the public bidding process for construction. 2. Pechanga Parkway Storm Drain Improvements - Environmental Mitigation The project includes the construction of new wetlands as part of the Wolf Valley Creek Channel - Stage I Project. The mitigation area is located along the north bank of T emecula Creek and a new landscaping and irrigation system will be installed. Once the mitigation area is constructed, the City is required to complete a 5-year maintenance and monitoring plan. RCFC & WCD has requested a copy of the proposed mitigation plans for review. Once RCFC & WCD provide their plan check comments, the City will send final comments to the consultant. 3. Murrieta Creek Bridge - Overland Drive Extension to Diaz Road This project includes studying alignments, design and construction of an extension of Overland Drive, westerly to Diaz Road, including a new bridge over Murrieta Creek. The design is being coordinated with the planned Murrieta Creek improvements overseen by Riverside County Flood Control (RCFC) and the Army Corp of Engineers (ACOE). The design consultant's 60% plans have been routed to the appropriate City departments, RCFC & ACOE, and the local utility agencies for review and comment. Plan check comments were sent to the consultant during the month of January; however, the design is currently on hold until the City and Corps can agree on a channel cross section that will not require the City to re-design the bridge plans. The City is 3 currently reviewing the channel revisions provided by the Corps for Murrieta Creek at the future Bridge location. The Consultant will be performing a hydraulic run for Murrieta Creek Channel based on revisions provided by the Corps to verify that a 3' freeboard under the Murrieta Creek Bridge at Overland Drive is provided. 4. 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 Murrieta Creek improvement project. SWE submitted a revised proposal to include the expanded scope of environmental work in June. Staff has reviewed SWE's proposal, and requested revisions have been forwarded to SWE. SWE has revised their original design proposal for this project in light of these additional efforts required. City Council approval of a contract amendment for SWE was secured on 9/11/07; a "re-kickoff' meeting to begin work on the expanded environmental scope is anticipated in the coming weeks. 5. 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. 6. Santa Gertrudis Bicycle/ 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. RCFC has provided an Encroachment Permit. This project cannot be constructed until adequate funds are identified. An application was submitted for State Bicycle Transportation Account (BT A) funds on 12/1/06. Plans & Specs will be completed by next week and the project will be shelved until funding is identified and appropriated. 7. Western Bypass Corridor - Alignment Study This project will complete an alignment study for the Western Bypass Corridor. The City has completed its review of the design plans for the chosen alignment of the northern portion of the Western Bypass (from Cherry Street to just south of Rancho California Road. URS is working on the City's comments. 8. Western Bypass Bridge Over Murrieta Creek This project involves the design and construction of a new bridge over Murrieta Creek at the westerly terminus of R-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. Entry permits for geological investigations are pending. The developer of the Villages of Old Town may be taking over the design and construction of this project. The City and developer are negotiating an agreement for the transfer of work. Further development ofthe design and environmental document is on hold pending the outcome of negotiations. 4 9. Temecula Community Center Expansion This project will add approximately 4000 square feet of space to the existing Temecula Community Center to accommodate more human services programs. Work has begun on construction documents for the approved project design. The site plan will also include provisions for the Community Pantry which will be located in the Escalier House and Barn. They will be moved to the site after it has been graded and utilities have been stubbed out. The agreement with Meyer and Associates was revised to reflect the changed scope of work and was approved by City Council on July 10, 2007. The design process is continuing, including the additional scope. 10. Redhawk Park Improvements, Four Sites This project will add amenities to four park sites in the recently annexed Redhawk area. RJM gave a presentation to a committee with members from City Council, residents and staff. This presentation included the information from past community work shops, which helped with conceptual design of the parks. Due to budgetary restraints, the construction was divided into phases over a number of years. RJM used the existing irrigation layout at the future dog park to help reduce the costs but at the same time allowed for a very flexible design that will be able to be adjusted as the dog park needs change in the future. RJM submitted a proposal to design a half court basketball court, ADA accessible parking, and dog park at Redhawk Community Park; a seatwall and shade structure at Sunset Park. The City is currently reviewing the proposal. 11. Old Town Infrastructure Projects - Site Demolition and Site Preparation This project involves demolishing the existing non-historic structures on the City owned parcels at the intersection Main and Mercedes to make way for the Main Street Realignment and the Old Town Parking Structure. The demolition of the McLaughlin Building and the community Pantry is complete. The site has been graded and erosion control BMP's have been installed. 12. Old Town Infrastructure Projects - Underground Utility District This project will effectively underground all overhead utility lines along Old Town Front Street, between 2nd and 6th streets, all of Main Street east of Murrieta Creek and Mercedes Street between 2nd and 6th streets. The City Council approved the resolution forming the underground utility district on October 10, 2006. SCE is designing their underground systems, which will be followed by design of CATV & Telephone UG systems. 60% street improvement plans have been forwarded to the utilities for their review in late January 2007. City met with all affected utilities in July. A second meeting is scheduled for the end of September. 13. 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 phase 1 of the Old Town Civic Center project. RBF submitted 95% street plans, which are under review. The plans include street, storm drain, water/sewer, grading & signage/striping. It was decided to merge the street phase with the Town Square phase; currently, the plan is to get 1 bid package out by the end of the year. SWA needs to finish their design to incorporate it into the bid package. Outstanding items include: (a) ADA path, (b) pavers design @ Mercedes, etc. Plans are expected to be completed in Oct and out to bid in Oct/Nov. Construction is anticipated by the end of the year. 5 14. Old Town Infrastructure Projects - Parking Structure & Office/Retail frontage This project will construct a parking structure, including office and retail frontage as part of phase 1 of Old Town Civic Center project. Design Architect, NMR submitted Design Development (DD) drawings for the Parking Structure (Ph 1D) on 9/5/7. The WQMP exhibit was also submitted. Northerly frontage space will house Police and Code Enforcement. Basement parking will be secured parking for City. The secured path of travel for Council has been established. 15. Old Town Infrastructure Projects - Town Square Under this project, the plaza area for Phase 1 of the Civic Center will be constructed. NMR and their landscape architect, SWA, have submitted the Design Development (DD) package. SWA is working on refining the ADA path of travel, the paver design, bollard design, etc. This phase has been merged with the street improvement work. 16. Old Town Civic Center Phase 2 Under this project the design and construction documents for phase two of the Civic Center Project will be developed. The City Council approved the Old Town Civic Center Master Plan and awarded a design contract to NMR for balance of the Civic Center design on April 1 0,2007. Design consultant NMR continues the schematic design process. NMR is finalizing the departmental space allocations and adjacency requirements and will be forwarding results in the next few weeks. Departmental floor plans will follow. 17.79 South Park & Ride This project will design and construct a park and ride facility on 79 South at La Paz. The City is coordinating with RT A to develop an MOU for the preliminary engineering phase of the work and the implementation of the project. Based on Statements of Qualifications a consultant has been selected. The City Council approved a design contract with ME at the 6/12/07 City Council meeting. The design kick-off meeting was held on 6/21/07, with authorization to proceed effective 07/02/07. The design process continues. 18. De Portola Road Pavement Rehabilitation Project (from Jedediah Smith to Margarita) This federally funded project includes rehabilitating De Portola Road from Jedediah Smith Road to Margarita Road. On Nov 14, 2006 City Council approved the design agreement w/GFB-Friedrich. Consultant started the record research & survey. City forwarded utility as-builts to GFB for coordination. 30% plans were submitted on 2/12/07; design engineer hired consultant to perform street borings. 70% plans are expected in Aug. Discussion of the new modified roadway section is taking place to determine if we could incorporate the new section into this rehab project. This is a federally funded project. The PES Submittal/App was resubmitted withe NESMI Report. It is being reviewed by Caltrans. 1 g. 79 South to Pechanga Parkway - Dual Right Turn Lanes This project includes the design and construction of two dedicated right turn lanes on eastbound 79 South to southbound Pechanga Parkway. The design includes the widening of 79 South and relocation of traffic signal poles/controller. Plan check comments were returned to the consultant during the 1 st week of August. 90% design plans were delayed and will be submitted to the City by the week of September 10. 6 20. Santiago Detention Basin This project includes the design and construction of a desilting basin on the south side of Santiago Road between Vallejo Avenue and John Warner Road. An agenda report for the final design of the Santiago Detention Basin was submitted to council for approval on August 14. The consultant will begin work on the final design plans in September. The City requested and received two proposals from the annual agreement consultant for the geotechnical investigation of the desilting basin. Petra will be performing the work for the project. 21. Pavement Rehabilitation - STPL Project This project will rehab Rancho California Road from Ynez Rd. to the City limits on the east. Geotechnical and survey work have been completed. Consultant has submitted the 30% design package to the City for review. Comments will be forwarded back to them shortly. City is working on prioritizing the areas to be rehabed based on the available funds. 22. Winchester Road/79-North Corridor Beautification This federally funded project will design and construct landscaping and irrigation enhancements to the existing raised medians along Winchester Road between Ynez Road and the easterly City limit. The consultant has submitted the 30% design package to the City for review. Comments will be forwarded to the consultant shortly. Comments from Caltrans in regards to the PES, NES and ISA forms have been addressed and are forwarded back to them. 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 requirement of RWQCB by desilting the channel & pond located near the Sports Park. City Council authorized the Professional Services Agreement with BonTerra Consulting on 11/14/06. BonTerra has initiated the environmental clearance process. An amendment to the consultant agreement was approved by City Council on 05/08/07 to provide additional studies required by the regulatory agencies. These studies will aide in determining any impact to native habitat. An RFP for the design was requested from the Annual Agreement consultants. Staff is currently reviewing the proposals. 24. 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 Road southbound off-ramp. Status is as follows: ~ PS&E - Consultant is preparing 95% plans (retaining walls and landscape/irrigation). ~ RIW - Establishing dedication and acquisition needs. ~ Construction Cooperative Agreement - Caltrans comments received on 2nd fact sheet submittal; City is preparing additional information requested. ~ Maintenance Agreement - City preparing exhibit for first draft. ~ Declaration of Units - Caltrans Approved Metric Exception for this phase. 7 )> Utilities - Preparing documents to initiate potholing. )> Conceptual Landscape/Aesthetics - Preparing concept for review. 25. Old Town Gymnasium This project will construct a gymnasium in old town, adjacent to the Boys and Girls Club. An RFP was issued to hire an architect to design the gymnasium. Interviews were conducted on 01/22/07. The scope of work has been finalized by the chosen architect and it has been approved by Staff. The agreement with the chosen architect, WLC, was approved by the City Council at the July 10, 2007 meeting. The design kickoff meeting was held on 08/16/07. 26. Re-Stripe Route 79 South to 8 lanes from 1-15 to Pechanga Parkway This project will provide four lanes in each direction on Route 79 South from Pechanga Parkway to I- 15. The Traffic Division is in the process of hiring a consultant to prepare the re-striping plans. Construction will be coordinated with the Pechanga Parkway Dual Right Turn Lanes (from 79 South) project. 27. 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. 28. 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. 29. Pedestrian/Bicycle Bridge Over Santa Gertrudis Creek This federally funded project includes the design and construction of an approximately 200' pedlbike bridge over Santa Gertrudis Creek near Chaparral H.S. This is a federally funded project, which will involve a NEPA document. A field meeting was held on 4/11/07 between the City, Caltrans, Army Corps, Regional Water Board, and Nolte to gather input in preparing the Preliminary Environmental Study form for submittal to Caltrans, the first step in obtaining Federal environmental clearance in the event of Federal funding. Staff review of the PES form has been completed, and the document has been submitted to Caltrans for review. Coordination between the City and Rancho California Water District to acquire a portion of an RCWD-owned parcel needed to construct the bridge continues. A proposal has been received from consultant Nolte Associates for design of the bridge and approaches, as well as for required environmental studies, and is under review by staff. PROJECTS IN THE PLANNING STAGE 11.1-15/ SR 79 South Interchange - Project Report (PR) This project will modify the 1-15/ SR 79 South Interchange to accommodate projected future traffic. 8 This is the next step of project development after the completion of the Project Study Report. City continued development of design geometries and environmental technical studies. Status is as follows: ~ Draft Project Report - 7th Submittal under Caltrans review. ~ Advisory Design Exceptions - Approved 10/18/06. ~ Mandatory Design Exceptions - Approved 10/20/06. ~ Stormwater Data Report - 4th submittal is to coincide with final PR Submittal. ~ Traffic Study - Approved 09/11/06. ~ Modified Access Report - FHWA Determination of Acceptability was approved in July 2007. ~ Geometric Approval Drawings - Under development. ~ Initial Study Assessment - Approved September 2005. ~ Acoustic Evaluation - Approved December 2005. ~ Air Quality Assessment - Approved PM10 Nov 2005 and PM2.5 Jul 2006. ~ Nat Environmental Study - Approved May 2006. ~ Cultural Studies - Approved November 2006. ~ Environmental Document - 4th Submittal is under Caltrans review. 12. 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. Current status is as follows: ~ Draft Project Report - Approved June 2006. ~ Project Report - Final preparation pending approval of Environmental Document. ~ Draft Environmental Document - Approved December 2006. ~ Environmental Document - Preparing revisions per Caltrans HQ cursory review. ~ New Connection Report - Preparing revisions per FHWA ~ Traffic Operations Analysis - Preparing revisions per FHWA. ~ Stormwater Data Report - Preparing final report. ~ Mandatory Design Exceptions - Approved 07/18/06. ~ Advisory Design Exceptions - Approved 07/18/06. ~ Exception to Ramp Metering Policy - Approved 07/05/06. ~ Geometric Approval Drawings - Approved 07/18/06. ~ Freeway Agreements - In Caltrans District 8 Circulation. ~ Risk Management Plan - Updating as necessary. ~ Project Charter - 1 st draft is under Caltrans review. ~ Declaration of Units - Request for Metric Exception denied by Caltrans. ~ Freeway Agmts - Under Caltrans-HQ review. 9 )> Risk Mgmt Plan - Updating as necessary. )> Project Charter - 1 st draft is under Caltrans review. )> Maintenance Agmt - Preparing 1st submittal for Caltrans review. )> Financial Plan - Preparing 2nd submittal for Caltrans review. 10 .. .~ ..--Gle ~a;~Q) ,C,Cu'l-:S :fl.; E.!1! -0 --::.S~-6EJ3 ()}_'O,_.s~ O-O(\)%~.g 9 Q) g::> to e. ~ ~\'l~ ~ ~ e o ", .---+-'~ Ul c i!l t:..... 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TO: FROM: DATE: SUBJECT: ~ MEMORANDUM Bill Hughes, Director of Public Works/City Eugineer Iri~ Brad Buron, Maintenance Superintendent September 12, 2007 Mouthly Activity Report - August, 2007 The following activities were performed by Public Works Department, Street Maintenance Division in-honse personnel for the month of August, 2007: I. SIGNS II. TREES A. B. e. Total signs replaced Total signs installed Total signs repaired 107 4 104 A. Total trees trimmed for sight distance and street sweeping concerns 92 III. ASPHALT REPAIRS A. B. Total square feet of A. e. repairs Total Tons 8.992 93 A. IV. CATCH BASINS 89 Total catch basins cleaned A. V. RIGHT-OF-WAY WEED ABATEMENT o Total square footage for right-of-way abatement VI. GRAFFITI REMOVAL A. B. Total locations 8.927 45 Total S.P. VII. STENCILING A. 187 New and repainted legends B. 13.681 L.F. of new and repainted red curb and striping R:\MAINT AIN\MOACfRPT Also, City Maintenance staff responded to ....2:L service order requests ranging from weed abatemeut, tree trimming, sign repair, A.C. failures, litter removal, and catch basin cleanings. This is compared to ~ service order requests for the month of .Julv. 2007. The Maintenance Crew has also put in 48 hours of overtime which includes standby time, special events and response to street emergencies. The total cost for Street Maintenance performed by Contractors for the month of Am!Ust. 2007 was $18.280.00 compared to $18.620.00 for the month of .Julv.2007. Account No. 5402 Account No. 5401 Account No. 999-5402 $ 18,280.00 $ -0- $ -0- cc: Dan York, Deputy Director of Public Works/City Engineer Greg Butler, Deputy Director of Public Works Ali Moghadam, Principal Engineer (Traffic) Amer Attar, Principal Engineer (Capital Improvements) Jerry Alegria, Senior Engineer (Land Development) R:\MAlNTAIN\MOACfRPT STREET MAINTENANCE CONTRACTORS The following contractors have performed the following projects for the month of August, 2007 Date: 08/06/07 39273 SPRINGTIME REMOVE AND REPLACE TYPE 301 CURB INLET # 5402 I TOTAL COST $ 5,385.00 Date: 08/.21/07 MARGARITA N/O WINCHESTER REMOVE AND REPLACE RIVER ROCK IN MEDIAN # 5402 TOTAL COST $ 2,780.00 Date: 08/22/07 A VENIDA DE MISSIONES AT VIA RIO TEMECULA REPAIRS TO DAMAGED GUARD RAIL FENCE # 5402 I TOTAL COST $ 2,465.00 Date: 08/30/02 CITYWIDE A.C. SAW CUTTING FOR CITY PATCH CREW # 5402 I TOTAL COST $ 2,650.00 Date: # I TOTAL COST Date: # I TOTAL COST Date: # I TOTAL COST Date: # TOTAL COST ACCOUNT #5401 TOTAL COST ACCOUNT #5402 TOTAL COST ACCOUNT #99-5402 I TOTAL COST -0- $ 18,280.00 -0- R:\MAINTAIN\MOACfRPT ~5 .~~ , ::>'" t:!:o ~ :l ~ ~ w. cA ~ 'g " 1::: ",<' ,_ co is ~ll " ~.g~ E-rj)o.. u.I '< o ,',,0' .r.' 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S .. c 0 0:: - ...J ...J 0 .. c 0 0 .. .. 0 m .. lL ~ lL 0 :;; :;; lL .c: i!! i!! 0 i!! c 0 W 0.. cij W .. .. .. ~ ::> 0:: ::> C ::> Z cij 0:: e- o:: e- Z e- ...: C 0 Ul W Ul Ul W .... ~ ;.; W ...J W Ul 3: .... Cl 0 :;; w Z .... ;.; ::;) W lL ::;) W Ul :;; ::;) 0 :;; 0 Cl W ...J a w ...J ii1 w ...J W W ., lL Cl W .... 0:: ...J i 0.. Z C C z ...: 0 m 0:: ;::: w w Z Ul 0:: 0 0 0:: ...: z 0 ...J ...: w w ...: ::;) w ~ ...: ...J :r: w c &! Ul ~ 0 Z ...J i5 0 0:: 0:: C ll: ::; 0.. .... 0 ::;) w w w Ul w w 0 w .... ...J Cl ;::: Cl 3: ...J ~ Z Ul 0:: 1!: Ul w :r: ~ ...: ::;) ii: ...: ::;) 0 a:: Ul Ul z :> 0:: s: :r: 0 lL 0 W ...: 0.. w ii1 :r: z z ...: <;: :r: 0:: .... e .... Ul C .... ~ Cl Cl 0:: 0:: ~ W lL 0 ...: iii Ul iii iii Cl c Ul ...: lli .... CITY OF TEMECULA DEPARTMENT OF PUBLIC WORKS ROADS DIVISION ASPHALT (POTHOLES) REPAIRS MONTH OF AUGUST, 2007 08/01/07 MARGARITA R&R A.C. 170 8 08/02/07 RANCHO WAY I A.C. OVERLAY 700 17 08/06107 I PECHANGA / LOS RANCHITOS I A.C. OVERLAY I 951 4.5 08107107 I PECHANGA I A.C. OVERLAY I 1,044 4 08/08/07 I VALLEJO AT LA PAZ I R&R A.C. I 899 12 08109/07 I VALLEJO AT LA PAZ I R&R A.c. I 900 I 7 08/13/07 I LA PAZ / VALLE VERDE I A.C.OVERLA Y I 745 I 6 08/14/07 I MARGARITA S/O WINCHESTER I R&R A.C. I 422 I 10 08/15/07 I MARGARITA S/O WINCHESTER / CABRILLO I A.c. OVERLAY I 1,024 I 7.5 08/16/07 I LOS RANCHITOS I A.C. OVERLAY I 1,177 I 5.5 08/29107 I LA SERENA AT TEMEKU HILLS I R&R A.C. I 205 I 7 08/30/07 I VALLE VERDE / MUIRFIELD I A.C. OVERLAY I 755 I 4.5 I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I TOTAL S.F. OF REPAIRS 8..992 TOTAL TONS 93 R:\MAINTAINIWKCMPLTD\ASPHALT.RPR CITY OF TEMECULA DEPARTMENT OF PUBLIC WORKS ROADS DIVISION CATCH BASIN MAINTENANCE MONTH OF AUGUST, 2007 08/01/07 AREA #4 CLEANED & CHECKED 7 CATCH BASINS I I 08/06/07 CITYWIDE CLEANED & CHECKED II CATCH BASINS I 0807/07 I OVERLAND CLEANED & CHECKED 2 CATCH BASINS I 08/13/07 I CITYWIDE CLEANED & CHECKED 9 CATCH BASINS I 08/20/07 I CITYWIDE CLEANED & CHECKED 8 CATCH BASINS I 08/21/07 I MEADOWVIEW AREA CLEANED & CHECKED 26 CATCH BASINS I 08/27/07 CITYWIDE I CLEANED & CHECKED 23 CATCH BASINS I 08/30/07 JEFFERSON I CLEANED & CHECKED 3 CATCH BASINS I I I I I I I I I , I I I I i I I I I I I I I " I I 'I I I r '[ I I I I I I " I I ;1 I I TOTAL CATCH BASINS CLEANED & CHECKED 89 R:\MAlNTAlN\WK.CMPLETD\CATCHBAS\ CITY OF TEMECULA DEPARTMENT OF PUBLIC WORKS ROADS DIVISION GRAI'I'Ul REMOVAL MONTH OF AUGUST, 2007 08/01/07 MIRA LOMA REMOVED 7 S.F. OF GRAFFITI 08/02/07 WINCHESTER / MARGARITA REMOVED 60 S.P. OF GRAFFITI 08/03/07 41950 MAIN STREET REMOVED 70 S.P. OF GRAFFITI 08/06/07 A VENIDA DE MISSIONES REMOVED 50 S.P. OF GRAFFITI 08/06/07 LOMA LINDA AT PECHANGA REMOVED 29 S.F. OF GRAFFITI 08/06/07 HWY 79 SO. AT APPLEBEE'S REMOVED 15 S.P. OF GRAFFITI 08/06/07 TOWER PLAZA REMOVED 24 S.F. OF GRAFFITI 08/06/07 MICHAELS BEHIND BillLDING REMOVED 62 S.P. OF GRAFFITI 08/06/07 WINCHESTER BRIDGE CHANNEL REMOVED 93 S.P. OF GRAFFITI 08/06/07 42420 WINCHESTER REMOVED 134 S.P. OF GRAFFITI 08/07/07 41493 MARGARITA ROAD REMOVED 6 S.F. OF GRAFFITI 08/07/07 MARGARITA AT OVERLAND REMOVED 4 S.F. OF GRAFFITI 08/07/07 SOLANA AT MARGARITA REMOVED 37 S.F. OF GRAFFITI 08/07/07 VIA GILBERTO AT PECHANGA REMOVED 14 S.P. OF GRAFFITI 08/08/07 LOMA LINDA AT PECHANGA REMOVED 56 S.P. OF GRAFFITI 08/09/07 WOLF CREEK . REMOVED 12 S.F. OF GRAFFITI 08/1 0/07 MARGARITA NORTH & SOUTH OF WINCHESTER REMOVED 24 S.F. OF GRAFFITI 08/13107 27531 YNEZ REMOVED 35 S.F. OF GRAFFITI 08113/07 SIB 1-15 OFF RAMP AT WINCHESTER REMOVED 55 S.P. OF GRAFFITI 08/13/07 OVERLAND BRIDGE REMOVED 47 S.P. OF GRAFFITI ~ 08/13/07 PECHANGA AT MUIRFlELD REMOVED 82 S.P. OF GRAFFITI 08/13/07 V AIL RANCH PARKWAY REMOVED 14 S.P. OF GRAFFITI l 08/14/07 REDHA WK AREA REMOVED 18 S.P. OF GRAFFITI R:\MAINTAIN\WKCMPLTD\GRAFFITI\ 08/15/07 MIRA LOMA I REMOVED I 127 S.P. OF GRAFFITI I 08/15/07 I CHURCHILL PLAZA I REMOVED 18 S.P. OF GRAFFITI I I 08/15/07/ BUTTERFIELDSTAGECREEK/!,~('HA.NGACREEK I REMOVED 6,731 S.F. OF GRAFFITI II 08/16/07 I PECHANGA CHANNEL I REMOVED I 48 S.P. OF GRAFFITI I 08/16/07 I ROMANCE PLACE I REMOVED 230 S.P. OF GRAFFITI I 108/17/07/0LDTOWNFRONTAT41'HSTREET I REMOVED 9 S.F. OF GRAFFITI I 08/20/07 / I-IS FWY SIB FROM WINCHESTER I REMOVED I 70 S.P. OF GRAFFITI I 08/20/07 I WINCHESTER AT SANTA GERTRUDIS CREEK I REMOVED I 200 S.F. OF GRAFFITI I II 08/20/07 I WOLF CREEK AT REDWOOD I REMOVED 10 S.P. OF GRAFFITI I 08/20/07 / BUTTERFIELD STAGE BRIDGE I REMOVED 40 S.P. OF GRAFFITI I 08/20/7 I RANCHO VISTA AT EL GRECO I REMOVED I 19 S.P. OF GRAFFITI I 08/20/07 I RANCHO CALIFORNIA ROAD AT CALLE T AJO I REMOVED I 80 S.P. OF GRAFFITI " i1 08/20/07/ PECHANGAATWOLFVALLEY I REMOVED I 46 S.P. OF GRAFFITI I I 08/21/07 / REDWOOD AT LOMA LINDA I REMOVED I 8 S.F. OF GRAFFITI I 08/22/07 I EMPIRE CREEK I REMOVED I 110 S.P. OF GRAFFITI I 08/23/07 I RAINBOW CREEK I REMOVED 16 S.P. OF GRAFFITI I II 08/27/07 I MAIN STREET BRIDGE I REMOVED 6 S.P. OF GRAFFITI I I 08/27/07 / CALLE PII~A COLADA AT VIA NORTE I REMOVED I 8 I S.P. OF GRAFFITI , I 08/28/07 I P ALA PARK I REMOVED I I 24 S.F. OF GRAFFITI I I 08/28/07 I MIRA LOMA CHANNEL I [" REMOVED 110 S.P. OF GRAFFITI I ,108/29/07/ MEADOWSPARKWAYN/OLEENAWAY I REMOVED 48 S.P. OF GRAFFITI I 08/30/07 I WINCHESTER AT ENTERPRISE CIRCLE I REMOVED I 21 S.F. OF GRAFFITI I I I I I I I I I I TOTAL S.P. GRAFFITI REMOVED 8.927 TOTAL LOCATIONS 45 R;\MAINTAIN\WKCMPLTD\GRAFFlTI\ 00. ; O~ <~~ ~UO ~~~ us~ ~~~ ~~~ ~~~ ~o~ ~~~ oz~ ~ ~ r~ ~~'-' u~t'--- ~o <~ ~ ~ ~ ! 00000000000000000000000000 00000000000000000000000000 00000000000000000000000000 ~~~~M~~~~M~~~~M~~~~M~~~~M~ ~~~~~~MMMMMNNNNN~~~~~ 1'--- .. 0: ~ QJ. "~. ,--- ,;I:l......~ -joool,='.'" .. ~ '" ,sC'E .!!a ~",q;, =...... ..-.".,., Cot o q;, ... 00 -tnV'lOt---\O li')\O('1')r--.\Olrl .... Il.... ?f)'.m."'" JS..o ll) ~a..c; ~E]E'S g] ~'iJ ~g >.5'o!B!.' 8 0; """ 0."" ,,;:; " " " 0 (l) .....~""<""..........<"-'OZCl ..,. ..,. 0 '" N '" - t'" 00 """" \0. '" ..,. N b N ~~ 0 tf) '" ~ '" \0 r<l '" b"' 00" ..,.^ - or:r t4" 00 00 - ~S .... J 0'0 .... t ~ '" (l) I "-'r.. ~ 1 .... 'S 'S 1 } '" " E 13 ~ '" ~ fr ~ !.' '" ~ ~ !3 u ~ 0 '" po, ::8 ::8 )-. lZl 0 Z " L " iLl c ~ i ~ ~ I ~ ~ ; " ~ z I- () o I- D. III UJ Cl ~ ~ ::::l ..., III Z ::::l ..., l- LL. a tI) + ~ ::;; ..J iii: %: II:: <( ::;; III III LL z <( ..., .... c '" ,~ = ..... 0: a-U 00 CITY OF TEMECULA DEPARTMENT OF PUBLIC WORKS ROADS DIVISION SERVICE ORDER REQUEST LOG MONTH OF AUGUST, 2007 08/01/07 32325 rAT T P, RESACA TREE LIMB DOWN 08/01107 08102/07 1 CUPENO A.C. WORK 08/02/07 08/02/07 I MEADOWS PARKWAY 1 A.C. REPAIR 08/02/07 08/03/07 I NO. GENERAL KEARNY 1 DEBRIS PICK-UP 08/03/07 08/06/07 1 31045 RUIDOSA STREET I STANDING WATER 08/06107 08/06/07 32965 ROSSMAN CIRCLE 1 TREE TRIMMING 08/06/07 08/08/07 NICOLE LANE 1 SIGN DOWN 08/08/07 08/08/07 130901 MEADE RIVER COURT / ROOT PRUNING 08/08/07 08/08/07 I BACCARAT ROAD 1 SLURRY 08/1 0/07 08/09/07 I VIA RIO TEMECULA 1 DAMAGED BARRIER 08/09/07 08/09/07 1 MORAGA / DEBRIS PICK-UP 08/09/07 08/09/07 I WOLF CREEK 1 TREE DOWN 08/09/07 08/10/07 /41614EAGLEPOINTWAY 1 DEAD TREE 08/10/07 08/1 0/07 41097 VINTAGE CIRCLE / STUMP GRINDING 08/1 0/07 08/10107 42670 HUSSAR COURT WATER LEAK 08/10/07 08/1 0/07 / DATEATYNEZ DEBRIS 08/10/07 08/13/07 1 MORAGA I DEBRIS 08/13/07 08/13/07 I 32361 CALLE RESACA TREE CONCERN 08/13/07 08/13/07 / 43056 CAMINO CASILLAS A.C. REPAIR 08/13/07 08/13107 131011 CORTEANACAPA TREE REMOVALS 08/13/07 08/14/07 I 45023 PUTTING GREEN COURT TREE REMOVALS 08/14/07 08/14/07 1 VAILRANCHAREA I SWEEPING CONCERN 08/14/07 08/14/07 I MARGARITA AT RAMSEY COURT DEBRIS 08/14/07 08/14/07 /41766COLONIALCOURT A.C. REPAIRS 08/14/07 08/16107 129794 MAXIMILIAN A ~~~_E_~___ I CELL IN DRAIN 08/16/07 ..--.-------- R\MAINTAIN\WRKCOMPLTD\SORS\ 08/16/07 MARGARITA I TREE LIMB 08/16/07 08/16/07 I MORAGA I DEBRIS I 08/16/07 08/16/07 I RANCHO CALIFORNIA ROAD W/O DIAZ I POTHOLES I 08/16/07 08/16/07 I 30421 RED RIVER CIRCLE I ROOT PRUNE I 08/16/07 08/17/07 I CAMINITO CIRCLE I STORM DRAIN CLEANING I 08/17/07 08/17/07 I 30688 E. LOMA LINDA I ROOT PRUNE I 08/17/07 08/17/07 I 31109VIAGILBERTO I TREE TRIMMING I 08/17/07 08/20/07 I KAHWEA I DEBRIS I 08/20/07 08/20/07 I 45342 ESMERADO COURT I TREE TRIM I 08/20/07 08/20/07 I PWTE I SIGN DOWN I 08/20/07 08/20/07 I HIAWATHA I SIGN DOWN I 08/20/07 08/20/07 I REDHAWKPARKWAY I STREET F AlLURE I 08/20/07 08/20/07 I HWY 79 SO. AT BUTTERFIELD STAGE ROAD I DEBRIS I 08/20/07 08/20/07 I CALA TORRENTE I REPAINT RED CURB I 08/20/07 08/21/07 /42106VANDAMERECOURT I TREE TRIM I 08/21/07 08/22/07 I MORAGA I DEBRIS I 08/22/07 08/22/07 I 30285 CABRILLO I STORM DRAIN CLEANING 1 08/22/07 08/24/07 I 30262 LONG V ALLEY DRIVE I DEBRIS I 08/24/07 08/24/07 I RIDGEPARKDRIVE I IRRIGATIONREPAlR / 08/24/07 08/27/07 /31557 CHAMPIONS CIRCLE I OIL SPILL I 08/27/07 08/27/07 1 32554 CORTE SALINAS I HANGING TENNIS SHOES I 08/27/07 08/27/07 I 42108 AGENA STREET I DEAD TREE I 08/27/07 08/28/07 131461 CULBERTSON LANE I DEAD TREE I 08/28/07 08/28/07 I EAGLE POINT WAY I DEAD TREES I 08/28/07 08/29/07 I TEMEKU DRIVE I DEBRIS I 08/29/07 08/29/07 I MORAGA I DEBRIS I 08/29/07 08/30/07 / CALLE PrNA COLADA I FENCE REMOVAL I 08/30/07 08/31/07 I YNEZ I DEBRIS 1 08/31/07 08/31/07 I DORAL COURT I OIL STAIN I 08/31/07 TOTAL SERVICE ORDER REQUESTS ~ R:\MAINTAIN\WRKCOMPLTD\SORS\ CITY OF TEMECULA DEPARTMENT OF PUBLIC WORKS ROADS DIVISION SIGNS MONTH OF AUGUST, 2007 I 08101107 CITYWIDE REPLACED 11 SIGNS; REPAIRED 6 I 08103107 ClTYWIDE I REPAIRED 8 SIGNS I 08106107 V AIL AT SILKY REPLACED WI-7 I 08107107 ClTYWIDE REPLACED 2; REPAIRED 4 I 08108/07 ClTYWIDE REPLACED 6; REPAIRED 7 I 08/09/07 ClTYWIDE REPLACED 2; REPAIRED 12 08/1 0/07 PAUBA/MARGARITA REPLACED 3; REPAIRED 5 08/15/07 RANCHO CALIFORNIA ROAD EIB AT JEFFERSON REPLACED 2R18-2 08/15/07 SOLANA W/O YNEZ REPLACED 2R26 08/16107 CITYWIDE I 08/20/07 ClTYWIDE I! 08/21/07 JOHNSTON AT CORTE SANCHEZ I 08/22/07 HURON AT PillTE 08122/07 JOHNSTON AT CAMINO PIEDRA ROJO 08/22/07 ClTYWIDE I " 08/23/07 ClTYWIDE I I 08/24/07 ClTYWIDE I I 08/27/07 CITYWIDE I 08/28/07 CITYWIDE I 08129107 HWY 79 SO. I 08/30/07 CITYWIDE L I I 1, II REPLACED 6; REPAIRED 13 REPLACED 3; REPAIRED 5 INSTALLED Rl-l INSTALLED W-14-2 INSTALLED 2 R2-25 REPLACED 6; REPAIRED 5 REPLACED 131; REPAIRED 11 REPLACED 4; REPAIRED 2 REPLACED 4; REPAIRED 8 I REPLACED 5; REPAIRED 7 I I REPLACED 11; REPAIRED 4 I REPLACED 8; REPAIRED 13 TOTAL SIGNS REPLACED --.lQZ I TOTAL SIGNS INSTALLED --...i -_J TOTAL SIGNS REPAIRED ~ R:\MAINTAIN\WKCMPLTD\SIGNS\ CITY OF TEMECULA DEPARTMENT OF PUBLIC WORKS ROADS DIVISION STENCILS / STRIPING MONTH OF AUGUST, 2007 I 08101/07 RIO NEDO REPAINTED I 08102107 AREA #S REPAINTED I 08106107 VAIL RANCH PARKWAY REPAINTED II 08107107 V AIL RANCH P ARKW A Y REPAINTED I 08108107 VAIL RANCH PARKWAY REPAINTED I 08109107 WELTON REPAINTED I REPAINTED I' 08110107 VIA LA COLORADA I 08110/07 DlAZ I RANCHO WAY REPAINTED ! 08113107 MARGARITA I LA SERENA REPAINTED r I 08113/07 MARGARITA / LA SERENA REPAINTED I 08113107 MARGARITA / LA SERENA REPAINTED I 08114/07 MARGARITA / LA SERENA REPAINTED I 08/14107 SCHOOLS REPAINTED [I 08115107 MARGARITA AT A VENIDA BARCA REPAINTED I 08/16/07 SCHOOLS REPAINTED II 08/20/07 HWY 79 SO. REPAINTED I I 08/21/07 AREA #5 REPAINTED I 08122107 PALOMA DEL SOL REPAINTED I 08/24/07 AREA #3 REPAINTED I 08/27/07 PALOMA DEL SOL . REPAINTED I I 08128/07 AREAS #2 & #3 REPAINTED I 08/29/07 AREAS #1 & #2 REPAINTED 08/30107 AREA #2 I REPAINTED I 10 LEGENDS 3 LEGENDS I 4S LEGENDS 'I 33 LEGENDS: I 31 LEGENDS I 20 LEGENDS I 12 LEGENDS 60 L.F. RED CURB I 154 L.F. YELLOW CURB S60 L.F. WHITE CURB 22 LEGENDS 1 11LEGENDSI 719 L.F. YELLOW CURB I 895 L.F. YELLOW CURB I 1,613 L.F. YELLOW CURB II 1,091 L.F. YELLOW CURB I 1,184 L.F. YELLOW CURB 1 1,020 L.F. YELLOW CURB 'I , 437 L.F. RED CURB I 1,768 L.F. RED CURB I 1,141 L.F. RED CURB ~I 1,646 L.F. RED CURB I 1,393 L.F. RED CURB I 1 J TOTAL NEW & REPAINTED LEGENDS NEW & REP AlNTED RED CURB & STRIPING L.F. 187 13.681 II R:\MAINTAIN\WRKCOMPLTDISTRIPING I 08101107 I 08108/07 I 08/08/07 I 08/14/07 I 08/20/07 I 08/22107 I 08/23107 I I 08/29/07 I 08/30/07 I I I I I , I I I I I I I , I I I L CITY OF TEMECULA DEPARTMENT OF PUBLIC WORKS ROADS DIVISION RIGHT-OF-WAY TREE TRIMMING MONTH OF AUGUST, 2007 MEADOWS PARKWAY AT RANCHO VISTA TRlMMED 6 R.O.W. TREES TRIMMED 5 R.O.W. TREES TRIMMED 4 R.O.W. TREES I TRIMMED 23 R.O.W. TREES TRIMMED 8 R.O.W. TREES TRIMMED 19 R.O.W. TREES TRIMMED 10 R.O.W. TREES I TRIMMED 9 R.O.W. TREES I TRIMMED 8 R.O.W. TREES I i I I I I I II MARGARITA RAINBOW CANYON ROAD VALLEJO CHANNEL CITYWIDE CITYWIDE CITYWIDE CITYWIDE CITYWIDE JI I TOTAL R.O.W. TREES TRIMMED ~ R'.\MAINTAIN\WRKCOMPLTO\TREES\ Ii - I. ITEM NO. 22 I I Approvals City Attorney Director of Finance City Manager ~ IJIL (JQ., CITY OF TEMECULA AGENDA REPORT TO: City Manager/City Council FROM: Jerry Williams, Chief of Police DATE: September 25, 2007 SUBJECT: Police Department Monthly Report The following report reflects the activity of the Temecula Police Department for the month of August 2007. PA TROL SERVICES Overall calls for police service ................................................................................................. 7,834 "Priority One" calls for service ....................................................................................................... 45 Average response time for "Priority One" calls.............................................................4.10 Minutes VOLUNTEERS Volunteer administration hours ................................................................................................... 449 Community Action Patrol (CAP) hours .......................................................................................464 Reserve officer hours (patrol) ....................................................................................................... 30 Total Volunteer hours................................................................................................................ 1311 CRIME PREVENTION/GRAFFITI Crime prevention workshops conducted ........................................................................................ 4 Residential/business security surveys conducted ................................................................... 01-09 Businesses visited........................................................................................................................ 17 Businesses visited for past crime follow.up.................................................................................. 11 Crime prevention articles ................................................................................................................1 Total square footage of graffiti removed................................................................................... 8927 Number of Graffiti Locations.......................................................................................45 OLD TOWN STOREFRONT Total customers served............................................................................................................... 293 Sets of fingerprints taken .............................................................................................................. 46 Police reports filed........................................................................................................................ 27 Citations signed off ....................................................................................................................... 21 Total receipts.......................................................................................................................... $5,118 POP TEAMS On sight felony arrests .................................................................................................................. 12 On sight misdemeanor arrests...................................................................................................... 11 Felony arrest warrants served ........................................................................................................4 Follow-up investigations................................................................................................................ 24 Presentations............................................................................................................ .0 GANG TEAM On sight felony arrests ....................................................................................................................6 On sight misdemeanor arrests........................................................................................................2 Felony arrest warrants served ........................................................................................................3 Follow-up investigations................................................................................................................ 16 Field I nvestigations Conducted..................................................................................................... 12 Presentations............................................................................................................ .0 SPECIAL ENFORCEMENT TEAM (SET TEAM) On sight felony arrests .................................................................................................................. 10 On sight misdemeanor arrests...................................................................................................... 10 Felony arrest warrants served ........................................................................................................1 Misdemeanor arrest warrants served ............................................................................................. 3 Follow-up investigations............................................................................................................... 21 Drugs Seized: 4.3 grams - Methamphetamine -1 pound Marijuana - 1 pound Cocaine - 430 Marijuana plants TRAFFIC Citations issued for hazardous violations ................................................................................... 863 D.U.I. checkpoints conducted......................................................................................................... 1 Non-hazardous citations............................................................................................................. 259 Stop Light Abuse Program (SLA.P.) citations........................................................................... 291 Neighborhood Enforcement Team (N.E.T.) citations ..................................................................... 0 Parking citations.. ... ... ... ... ... ..... ... ... ... .... ... ... ... ... ..... ... ... ... .... ... ... ... ... ... ..... ... ... ... .... ... ... ... ... ... ..... ... ..... 1 Injury collisions................................................................................................................................ 2 Presentations............................................................................................................ .0 INVESTIGA TIONS Beginning Case load .................................................................................................................... 263 Total Cases Assigned during August ........................................................................................... 41 Total Cases Closed during August................................................................................. .62 Number of community seminars conducted ................................................................................... 0 Presentations............................................................................................................ .0 PROMENADE MALL TEAM Calls for service........................................................................................................................... 224 Felony arrest/filings......................................................................................................................... 8 Misdemeanor arrest/filings............................................................................................................ 23 Vehicle burglaries........................................................................................................................... 1 Vehicle thefts. ... ... ... ... ... ..... ... ... ... .... ... ... ... ... ... ..... ... ... ... .... ... ... ... ... ..... ... ... ... .... ... ... ... ... ... ..... ... ... ... ..... 0 Prevention/Suppression Programs................................................................................................. 0 Vehicle Crime Deterrence Zero Tolerance Terrorism Early Warning Group Conference Theft Decoy T3 PEM Training SCHOOL RESOURCE OFFICERS Felony arrests................................................................................................................................. 2 Misdemeanor arrests ...................................................................................................................... 5 Citations..................................................................................................................... ..................... 8 Youth counseled........................................................................................................................... 67 Presentations........................................................................................................... .8 Drug Alcohol Awareness Grades 9-11 Internet Safety Gangs Officer Safety Laws on Campus YOUTH ACCOUNTABILITY TEAM Orientations delivered to new program members .......................................................................... 5 School visits.................................................................................................................................. 10 Home visits........................................................................................................................ ............ 32 Presentations............................................................................................................ .2 Truancy Sweep............................................................................................................O